1.1 	A bill for an act
1.2 	relating to the organization and operation of state government; providing for 
1.3 	programs in education, higher education, environment and natural resources, 
1.4 	energy, agriculture, veterans affairs, military affairs, jobs and economic 
1.5 	development activities or programs, transportation, public safety, courts, 
1.6 	human rights, judiciary, housing, public health, health department, and human 
1.7 	services; modifying certain statutory provisions and laws; providing for certain 
1.8 	programs for economic and state affairs; regulating certain activities and 
1.9 	practices; fixing and limiting fees; authorizing rulemaking, requiring studies 
1.10 	and reports; providing civil penalties; making technical corrections; providing 
1.11 	for fund transfers; appropriating money or reducing appropriations;amending 
1.12 	Minnesota Statutes 2006, sections 3.30, subdivision 1; 3.855, subdivision 
1.13 	3; 3.971, subdivision 2; 10A.071, subdivision 3; 13.32, subdivision 3, by 
1.14 	adding a subdivision; 13.461, by adding a subdivision; 13.465, subdivision 8; 
1.15 	13.851, by adding a subdivision; 15A.081, subdivision 8; 15A.0815; 16A.133, 
1.16 	subdivision 1; 16B.281, subdivision 3; 16B.282; 16B.283; 16B.284; 16B.287, 
1.17 	subdivision 2; 16C.16, subdivision 5; 16E.01, subdivision 3; 16E.03, subdivision 
1.18 	1; 16E.04, subdivision 2; 17.4988, subdivisions 2, 3; 43A.01, subdivision 3; 
1.19 	43A.17, subdivision 9; 84.788, subdivision 3; 84.82, subdivision 2, by adding 
1.20 	a subdivision; 84.922, subdivision 2; 84.9256, subdivision 1; 85.011; 85.012, 
1.21 	subdivisions 28, 49a; 85.013, subdivision 1; 85.054, subdivision 3, by adding 
1.22 	a subdivision; 86B.401, subdivision 2; 88.15, subdivision 2; 89.715; 93.481, 
1.23 	by adding a subdivision; 97A.055, subdivision 4b; 97A.141, subdivision 
1.24 	1; 103A.204; 103A.43; 103B.151, subdivision 1; 103G.291, by adding a 
1.25 	subdivision; 103G.615, subdivision 2; 116J.423, by adding a subdivision; 
1.26 	116J.8731, subdivision 4; 116L.17, by adding a subdivision; 116U.26; 119A.03, 
1.27 	subdivision 1; 120B.131, subdivision 2; 120B.31, as amended; 120B.35, as 
1.28 	amended; 120B.36, as amended; 120B.362; 122A.21; 123B.02, subdivision 21; 
1.29 	123B.59, subdivision 1; 123B.62; 124D.04, subdivisions 3, 6, 8, 9; 124D.05, 
1.30 	by adding a subdivision; 124D.10, subdivision 20; 124D.385, subdivision 4; 
1.31 	124D.55; 125A.65, by adding a subdivision; 125A.76, by adding a subdivision; 
1.32 	126C.10, subdivision 31, by adding a subdivision; 126C.17, subdivision 
1.33 	9; 126C.21, subdivision 1; 126C.51; 126C.52, subdivision 2, by adding a 
1.34 	subdivision; 126C.53; 126C.55; 127A.45, subdivision 16; 136A.101, subdivision 
1.35 	8; 136A.121, subdivision 5; 136F.90, subdivision 1; 141.25, by adding a 
1.36 	subdivision; 144.1222, subdivision 1a, by adding subdivisions; 144.1501, 
1.37 	subdivision 2; 144.218, subdivision 1; 144.225, subdivision 2; 144.2252; 
1.38 	144.226, subdivision 1; 157.16, as amended; 168.1255, by adding a subdivision; 
1.39 	171.29, subdivision 1; 190.19, subdivision 1, by adding a subdivision; 192.501, 
2.1 	by adding subdivisions; 197.585, subdivision 5; 216C.41, subdivision 4; 
2.2 	253B.045, subdivisions 1, 2, by adding a subdivision; 253B.185, subdivision 
2.3 	5; 256.01, by adding a subdivision; 256.741, subdivisions 2, 2a, 3; 256.969, 
2.4 	subdivisions 2b, 20; 256B.0571, subdivisions 8, 9; 256B.0621, subdivisions 
2.5 	2, 6, 10; 256B.0917, subdivision 8; 256B.0924, subdivisions 4, 6; 256B.19, 
2.6 	subdivision 1d; 256B.431, subdivision 23; 256B.69, subdivisions 5a, 6, by 
2.7 	adding subdivisions; 256B.692, subdivision 2, by adding a subdivision; 256D.44, 
2.8 	subdivisions 2, 5; 256L.12, subdivision 9; 259.89, subdivision 1; 260C.317, 
2.9 	subdivision 4; 268.125, subdivisions 1, 2, by adding a subdivision; 298.2214, 
2.10 	subdivisions 1, 2, as amended; 298.223, subdivision 2; 298.28, subdivisions 
2.11 	9b, 9d, as added; 298.292, subdivision 2, as amended; 298.2961, subdivision 
2.12 	2; 341.21, as amended; 341.23; 341.26; 341.28, as amended; 341.29; 341.30; 
2.13 	341.32, as amended; 341.33; 341.34, subdivision 1; 341.35; 341.37; 349A.02, 
2.14 	subdivision 1; 446A.12, subdivision 1; 462A.22, subdivision 1; 473.1565, 
2.15 	subdivision 3; 518A.50; 518A.53, subdivision 5; 609.531, subdivision 1; 
2.16 	Minnesota Statutes 2007 Supplement, sections 3.922, by adding a subdivision; 
2.17 	10A.01, subdivision 35; 16B.328, by adding a subdivision; 84.8205, subdivision 
2.18 	1; 103G.291, subdivision 3; 116J.575, subdivision 1a; 116L.17, subdivision 
2.19 	1; 120B.021, subdivision 1; 120B.024; 120B.30; 123B.143, subdivision 
2.20 	1; 124D.531, subdivision 1; 126C.21, subdivision 3; 126C.44; 136A.121, 
2.21 	subdivision 7a; 136A.126; 136A.127; 136A.128, by adding a subdivision; 
2.22 	136A.65, subdivisions 1, 3, 5, 6, 7; 136A.66; 136A.67; 136A.69; 136F.02, 
2.23 	subdivision 1; 136F.03, subdivision 4; 141.25, subdivision 5; 141.28, subdivision 
2.24 	1; 141.35; 190.19, subdivision 2; 214.04, subdivision 3; 216C.052, subdivision 
2.25 	2; 216C.41, subdivision 3; 253B.185, subdivision 1b; 256.741, subdivision 1; 
2.26 	256B.0625, subdivision 20; 256B.0631, subdivisions 1, 3; 256B.199; 256B.434, 
2.27 	subdivision 19; 256J.621; 268.047, subdivisions 1, 2; 268.085, subdivisions 
2.28 	3, 9, 16; 268.125, subdivision 3; 298.227; 341.22; 341.25; 341.27; 341.321; 
2.29 	446A.072, subdivisions 3, 5a; 446A.086; Laws 1999, chapter 223, article 
2.30 	2, section 72; Laws 2006, chapter 282, article 2, section 27, subdivision 4; 
2.31 	Laws 2007, chapter 45, article 2, section 1; Laws 2007, chapter 54, article 
2.32 	1, section 11; Laws 2007, chapter 57, article 1, section 4, subdivisions 3, 4, 
2.33 	6; Laws 2007, chapter 135, article 1, section 3, subdivisions 2, 3; Laws 2007, 
2.34 	chapter 144, article 1, sections 3, subdivisions 2, 18; 5, subdivisions 2, 5; Laws 
2.35 	2007, chapter 146, article 1, section 24, subdivisions 2, 3, 4, 5, 6, 7, 8; article 
2.36 	2, section 46, subdivisions 2, 3, 4, 6, 9, 13; article 3, sections 23, subdivision 
2.37 	2; 24, subdivisions 3, 4, 9; article 4, section 16, subdivisions 2, 3, 6, 8; article 
2.38 	5, section 13, subdivisions 2, 3, 4, 5; article 7, section 4; article 9, section 17, 
2.39 	subdivisions 2, 3, 4, 8, 9, 13; Laws 2007, chapter 147, article 2, section 21; article 
2.40 	19, section 3, subdivisions 1, 4; Laws 2007, chapter 148, article 1, sections 7; 12, 
2.41 	subdivision 4; Laws 2007, First Special Session chapter 2, article 1, section 11, 
2.42 	subdivisions 1, 2, 6; Laws 2008, chapter 152, article 1, section 6, subdivision 2; 
2.43 	proposing coding for new law in Minnesota Statutes, chapters 5; 13B; 16A; 43A; 
2.44 	115A; 116J; 120B; 121A; 124D; 127A; 136F; 144; 192; 256B; 268; 325F; 341; 
2.45 	446A; repealing Minnesota Statutes 2006, sections 16B.281, subdivisions 2, 4, 5; 
2.46 	16B.285; 84.961, subdivision 4; 85.013, subdivision 21b; 97A.141, subdivision 
2.47 	2; 121A.67; 125A.16; 125A.19; 125A.20; 125A.57; 168.123, subdivision 2a; 
2.48 	256.741, subdivision 15; 256J.24, subdivision 6; 259.83, subdivision 3; 259.89, 
2.49 	subdivisions 2, 3, 4, 5; 298.28, subdivision 9a; 341.31; 645.44, subdivision 19; 
2.50 	Minnesota Statutes 2007 Supplement, section 256.969, subdivision 27; Laws 
2.51 	1989, chapter 335, article 1, section 21, subdivision 8, as amended; Laws 2004, 
2.52 	chapter 188, section 2; Laws 2006, chapter 263, article 3, section 16; Laws 2007, 
2.53 	First Special Session chapter 2, article 1, section 11, subdivisions 3, 4.
2.54 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.1 	ARTICLE 1
3.2 	K-12 EDUCATION

3.3 	Section 1. Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1, 
3.4 	is amended to read:
3.5 		Subdivision 1.Required academic standards. (a) The following subject areas 
3.6 	are required for statewide accountability:
3.7 	(1) language arts;
3.8 	(2) mathematics;
3.9 	(3) science;
3.10 	(4) social studies, including history, geography, economics, and government and 
3.11 	citizenship;
3.12 	(5) physical education;
3.13 	(6) health and physical education, for which locally developed academic standards 
3.14 	apply; and
3.15 	(6) (7) the arts, for which statewide or locally developed academic standards apply, 
3.16 	as determined by the school district. Public elementary and middle schools must offer at 
3.17 	least three and require at least two of the following four arts areas: dance; music; theater; 
3.18 	and visual arts. Public high schools must offer at least three and require at least one of the 
3.19 	following five arts areas: media arts; dance; music; theater; and visual arts.
3.20 	(b) To satisfy the one-half credit physical education requirement under section 
3.21 	120B.024, paragraph (a), clause (5), the state physical education standard under paragraph 
3.22 	(a) must be consistent with either the six physical education standards developed by the 
3.23 	department's quality teaching network or the six National Physical Education Standards 
3.24 	developed by the National Association for Sport and Physical Education. Minnesota 
3.25 	Statutes, chapter 14, and section 14.386, specifically, do not apply. To satisfy federal 
3.26 	reporting requirements for continued funding under Title VII of the Physical Education 
3.27 	for Progress Act, a school district must notify the department, if applicable, of its intent 
3.28 	to comply with the National Physical Education Standards. School districts and charter 
3.29 	schools also must use either the department's physical education standards or the national 
3.30 	physical education standards under this paragraph to comply with paragraph (a), clause 
3.31 	(5), in providing physical education instruction and programs to students in kindergarten 
3.32 	through grade 8.
3.33 	(c) The commissioner must submit proposed standards in science and social studies 
3.34 	to the legislature by February 1, 2004.
4.1 	(d) For purposes of applicable federal law, the academic standards for language arts, 
4.2 	mathematics, and science apply to all public school students, except the very few students 
4.3 	with extreme cognitive or physical impairments for whom an individualized education 
4.4 	plan team has determined that the required academic standards are inappropriate. 
4.5 	An individualized education plan team that makes this determination must establish 
4.6 	alternative standards.
4.7 	(e) A school district, no later than the 2007-2008 school year, must adopt graduation 
4.8 	requirements that meet or exceed state graduation requirements established in law or 
4.9 	rule. A school district that incorporates these state graduation requirements before the 
4.10 	2007-2008 school year must provide students who enter the 9th grade in or before 
4.11 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
4.12 	established graduation requirements in effect when the students entered the 9th grade. 
4.13 	District efforts to develop, implement, or improve instruction or curriculum as a result 
4.14 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
4.15 	and 120B.20. 
4.16 	(f) The commissioner must include the contributions of Minnesota American Indian 
4.17 	tribes and communities as they relate to the academic standards during the review and 
4.18 	revision of the required academic standards.

4.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
4.20 	except that paragraph (a), clause (5), applies to students entering the ninth grade in the 
4.21 	2009-2010 school year and later.

4.22 	Sec. 2. Minnesota Statutes 2007 Supplement, section 120B.024, is amended to read:
4.23 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
4.24 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
4.25 	successfully complete the following high school level course credits for graduation:
4.26 	(1) four credits of language arts;
4.27 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
4.28 	and probability sufficient to satisfy the academic standard;
4.29 	(3) three credits of science, including at least one credit in biology;
4.30 	(4) three and one-half credits of social studies, encompassing at least United 
4.31 	States history, geography, government and citizenship, world history, and economics or 
4.32 	three credits of social studies encompassing at least United States history, geography, 
4.33 	government and citizenship, and world history, and one-half credit of economics taught in 
4.34 	a school's social studies, agriculture education, or business department;
5.1 	(5) one credit in the arts; and
5.2 	(6) one-half credit of physical education; and
5.3 	(7) a minimum of seven 6-1/2 elective course credits.
5.4 	A course credit is equivalent to a student successfully completing an academic 
5.5 	year of study or a student mastering the applicable subject matter, as determined by the 
5.6 	local school district.
5.7 	(b) An agriculture science course may fulfill a science credit requirement in addition 
5.8 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
5.9 	clause (3).
5.10 	(c) A career and technical education course may fulfill a science, mathematics, or 
5.11 	arts credit requirement in addition to the specified science, mathematics, or arts credits 
5.12 	under paragraph (a), clause (2), (3), or (5).

5.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
5.14 	and applies to students entering ninth grade in the 2009-2010 school year and later.

5.15 	Sec. 3. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:
5.16 		Subd. 2.Reimbursement for examination fees. The state may reimburse 
5.17 	college-level examination program (CLEP) fees for a Minnesota public or nonpublic high 
5.18 	school student who has successfully completed one or more college-level courses in high 
5.19 	school in the subject matter of each examination in the following subjects: composition 
5.20 	and literature, mathematics and science, social sciences and history, foreign languages, and 
5.21 	business and humanities. The state may reimburse each student for up to six examination 
5.22 	fees. The commissioner shall establish application procedures and a process and schedule 
5.23 	for fee reimbursements. The commissioner must give priority to reimburse the CLEP 
5.24 	examination fees of students of low-income families.

5.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.26 	Sec. 4. [120B.299] DEFINITIONS.
5.27 		Subdivision 1.Definitions. The definitions in this section apply to this chapter.
5.28 		Subd. 2.Growth. "Growth" compares the difference between a student's 
5.29 	achievement score at two distinct points in time.
5.30 		Subd. 3.Value-added. "Value-added" is the amount of achievement a student 
5.31 	demonstrates above an established baseline.
6.1 		Subd. 4.Growth-based value-added. "Growth-based value-added" is a 
6.2 	value-added system of assessments that measures the difference between an established 
6.3 	baseline of growth and a student's growth over time.
6.4 		Subd. 5.Adequate yearly progress. "Adequate yearly progress" compares the 
6.5 	average achievement of two different groups of students at two different points in time. 
6.6 		Subd. 6.State growth norm. "State growth norm" is an established statewide 
6.7 	percentile or standard applicable to all students in a particular grade benchmarked to an 
6.8 	established school year. Beginning in the 2008-2009 school year, the state growth norm 
6.9 	is benchmarked to 2006-2007 school year data until the commissioner next changes the 
6.10 	vertically linked scale score. Each time the commissioner changes the vertically linked 
6.11 	scale score, a recognized Minnesota assessment group composed of assessment and 
6.12 	evaluation directors and staff and researchers, in collaboration with the Independent Office 
6.13 	of Educational Accountability under section 120B.31, subdivision 3, must recommend 
6.14 	a new state growth norm that the commissioner must consider when revising standards 
6.15 	under section 120B.023, subdivision 2. For each newly established state growth norm, the 
6.16 	commissioner also must establish criteria for identifying schools and school districts that 
6.17 	demonstrate accelerated growth in order to advance educators' professional development 
6.18 	and to replicate programs that succeed in meeting students' diverse learning needs.

6.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.20 	Sec. 5. Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:
6.21 	120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
6.22 		Subdivision 1.Statewide testing. (a) The commissioner, with advice from experts 
6.23 	with appropriate technical qualifications and experience and stakeholders, consistent with 
6.24 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
6.25 	level to be tested, state-constructed tests developed from and aligned with the state's 
6.26 	required academic standards under section 120B.021 and administered annually to all 
6.27 	students in grades 3 through 8 and at the high school level. A state-developed test in a 
6.28 	subject other than writing, developed after the 2002-2003 school year, must include both 
6.29 	machine-scoreable and constructed response questions. The commissioner shall establish 
6.30 	one or more months during which schools shall administer the tests to students each 
6.31 	school year. For students enrolled in grade 8 before the 2005-2006 school year, only 
6.32 	Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 
6.33 	basic skills testing requirements for a passing state notation. The passing scores of basic 
6.34 	skills tests in reading and mathematics are the equivalent of 75 percent correct for students 
7.1 	entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of
7.2 	administered in February 1998.
7.3 	(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
7.4 	following options shall fulfill students' state graduation test requirements:
7.5 	(1) for reading and mathematics:
7.6 	(i) obtaining an achievement level equivalent to or greater than proficient as 
7.7 	determined through a standard setting process on the Minnesota comprehensive 
7.8 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
7.9 	score as determined through a standard setting process on the graduation-required 
7.10 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
7.11 	subsequent retests;
7.12 	(ii) achieving a passing score as determined through a standard setting process on the 
7.13 	state-identified language proficiency test in reading and the mathematics test for English 
7.14 	language learners or the graduation-required assessment for diploma equivalent of those 
7.15 	assessments for students designated as English language learners;
7.16 	(iii) achieving an individual passing score on the graduation-required assessment 
7.17 	for diploma as determined by appropriate state guidelines for students with an individual 
7.18 	education plan or 504 plan;
7.19 	(iv) obtaining achievement level equivalent to or greater than proficient as 
7.20 	determined through a standard setting process on the state-identified alternate assessment 
7.21 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
7.22 	an individual education plan; or
7.23 	(v) achieving an individual passing score on the state-identified alternate assessment 
7.24 	or assessments as determined by appropriate state guidelines for students with an 
7.25 	individual education plan; and
7.26 	(2) for writing:
7.27 	(i) achieving a passing score on the graduation-required assessment for diploma;
7.28 	(ii) achieving a passing score as determined through a standard setting process on 
7.29 	the state-identified language proficiency test in writing for students designated as English 
7.30 	language learners;
7.31 	(iii) achieving an individual passing score on the graduation-required assessment 
7.32 	for diploma as determined by appropriate state guidelines for students with an individual 
7.33 	education plan or 504 plan; or
7.34 	(iv) achieving an individual passing score on the state-identified alternate assessment 
7.35 	or assessments as determined by appropriate state guidelines for students with an 
7.36 	individual education plan.
8.1 	 (c) The 3rd through 8th grade and high school level test results shall be available 
8.2 	to districts for diagnostic purposes affecting student learning and district instruction and 
8.3 	curriculum, and for establishing educational accountability. The commissioner must 
8.4 	disseminate to the public the test results upon receiving those results.
8.5 	 (d) State tests must be constructed and aligned with state academic standards. The
8.6 	commissioner shall determine the testing process and the order of administration shall be 
8.7 	determined by the commissioner. The statewide results shall be aggregated at the site and 
8.8 	district level, consistent with subdivision 1a.
8.9 	 (e) In addition to the testing and reporting requirements under this section, the 
8.10 	commissioner shall include the following components in the statewide public reporting 
8.11 	system:
8.12 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
8.13 	school level that provides appropriate, technically sound accommodations, alternate 
8.14 	assessments, or exemptions consistent with applicable federal law, only with parent or 
8.15 	guardian approval, for those very few students for whom the student's individual education 
8.16 	plan team under sections 125A.05 and 125A.06 determines that the general statewide test 
8.17 	is inappropriate for a student, or for a limited English proficiency student under section 
8.18 	124D.59, subdivision 2;
8.19 	(2) educational indicators that can be aggregated and compared across school 
8.20 	districts and across time on a statewide basis, including average daily attendance, high 
8.21 	school graduation rates, and high school drop-out rates by age and grade level;
8.22 	(3) state results on the American College Test; and
8.23 	(4) state results from participation in the National Assessment of Educational 
8.24 	Progress so that the state can benchmark its performance against the nation and other 
8.25 	states, and, where possible, against other countries, and contribute to the national effort 
8.26 	to monitor achievement.
8.27 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
8.28 	develop reading, mathematics, and science assessments aligned with state academic 
8.29 	standards that districts and sites must use to monitor student growth toward achieving 
8.30 	those standards. The commissioner must not develop statewide assessments for academic 
8.31 	standards in social studies, health and physical education, and the arts. The commissioner 
8.32 	must require:
8.33 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
8.34 	high school level for the 2005-2006 school year and later; and
9.1 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
9.2 	grades 6 through 98 span, and a life sciences assessment in the grades 109 through 12 
9.3 	span for the 2007-2008 school year and later.
9.4 	(b) The commissioner must ensure that all statewide tests administered to elementary 
9.5 	and secondary students measure students' academic knowledge and skills and not students' 
9.6 	values, attitudes, and beliefs.
9.7 	(c) Reporting of assessment results must:
9.8 	(1) provide timely, useful, and understandable information on the performance of 
9.9 	individual students, schools, school districts, and the state;
9.10 	(2) include, by no later than the 2008-2009 school year, a growth-based value-added 
9.11 	component that is in addition to a measure for student achievement growth over time
9.12 	indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
9.13 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
9.14 	whether students have met the state's basic skills requirements; and
9.15 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
9.16 	whether students have met the state's academic standards.
9.17 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 
9.18 	(1), the commissioner must include appropriate, technically sound accommodations or 
9.19 	alternative assessments for the very few students with disabilities for whom statewide 
9.20 	assessments are inappropriate and for students with limited English proficiency.
9.21 	(e) A school, school district, and charter school must administer statewide 
9.22 	assessments under this section, as the assessments become available, to evaluate student 
9.23 	progress in achieving the proficiency in the context of the state's grade level academic 
9.24 	standards. If a state assessment is not available, a school, school district, and charter 
9.25 	school must determine locally if a student has met the required academic standards. A 
9.26 	school, school district, or charter school may use a student's performance on a statewide 
9.27 	assessment as one of multiple criteria to determine grade promotion or retention. A 
9.28 	school, school district, or charter school may use a high school student's performance on a 
9.29 	statewide assessment as a percentage of the student's final grade in a course, or place a 
9.30 	student's assessment score on the student's transcript.
9.31 		Subd. 2.Department of Education assistance. The Department of Education 
9.32 	shall contract for professional and technical services according to competitive bidding 
9.33 	procedures under chapter 16C for purposes of this section.
9.34 		Subd. 3.Reporting. The commissioner shall report test data publicly and to 
9.35 	stakeholders, including the performance achievement levels developed from students' 
9.36 	unweighted test scores in each tested subject and a listing of demographic factors that 
10.1 	strongly correlate with student performance. The commissioner shall also report data that 
10.2 	compares performance results among school sites, school districts, Minnesota and other 
10.3 	states, and Minnesota and other nations. The commissioner shall disseminate to schools 
10.4 	and school districts a more comprehensive report containing testing information that 
10.5 	meets local needs for evaluating instruction and curriculum.
10.6 		Subd. 4.Access to tests. The commissioner must adopt and publish a policy 
10.7 	to provide public and parental access for review of basic skills tests, Minnesota 
10.8 	Comprehensive Assessments, or any other such statewide test and assessment. Upon 
10.9 	receiving a written request, the commissioner must make available to parents or guardians 
10.10 	a copy of their student's actual responses to the test questions to be reviewed by the 
10.11 	parent for their review.

10.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.13 	Sec. 6. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter 
10.14 	146, article 2, section 10, is amended to read:
10.15 	120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL 
10.16 	ADJUSTMENTS.
10.17 		Subdivision 1.Educational accountability and public reporting. Consistent 
10.18 	with the process direction to adopt a results-oriented graduation rule statewide academic 
10.19 	standards under section 120B.02, the department, in consultation with education and other 
10.20 	system stakeholders, must establish maintain a coordinated and comprehensive system of 
10.21 	educational accountability and public reporting that promotes higher greater academic 
10.22 	achievement, preparation for higher academic education, preparation for the world of 
10.23 	work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4), and 
10.24 	120B.024, paragraph (a), clause (4), and the arts. 
10.25 		Subd. 2.Statewide testing. Each school year, all school districts shall give a 
10.26 	uniform statewide test to students at specified grades to provide information on the status, 
10.27 	needs and performance of Minnesota students.
10.28 		Subd. 3.Educational accountability. (a) The Independent Office of Educational 
10.29 	Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 
10.30 	section 28, subdivision 2, is established, and shall be funded through the Board of Regents 
10.31 	of the University of Minnesota. The office shall advise the education committees of 
10.32 	the legislature and the commissioner of education, at least on a biennial basis, on the 
10.33 	degree to which the statewide educational accountability and reporting system includes a 
10.34 	comprehensive assessment framework that measures school accountability for students 
11.1 	achieving the goals described in the state's results-oriented high school graduation 
11.2 	rule. The office shall determine and annually report to the legislature whether and how 
11.3 	effectively: 
11.4 	(1) the statewide system of educational accountability utilizes uses multiple 
11.5 	indicators to provide valid and reliable comparative and contextual data on students, 
11.6 	schools, districts, and the state, and if not, recommend ways to improve the accountability 
11.7 	reporting system;
11.8 	(2) the commissioner makes statistical adjustments when reporting student data over 
11.9 	time, consistent with clause (4);
11.10 	(3) the commissioner uses indicators of student achievement growth a growth-based 
11.11 	value-added indicator of student achievement over time and a value-added assessment 
11.12 	model that estimates the effects of the school and school district on student achievement to 
11.13 	measure school performance, consistent with section 120B.36, subdivision 1 120B.35, 
11.14 	subdivision 3, paragraph (b);
11.15 	(4) the commissioner makes data available on students who do not pass one or more 
11.16 	of the state's required GRAD tests and do not receive a diploma as a consequence, and 
11.17 	categorizes these data according to gender, race, eligibility for free or reduced lunch, and 
11.18 	English language proficiency; and
11.19 	(5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.
11.20 	(b) When the office reviews the statewide educational accountability and reporting 
11.21 	system, it shall also consider:
11.22 	(1) the objectivity and neutrality of the state's educational accountability system; and
11.23 	(2) the impact of a testing program on school curriculum and student learning.
11.24 		Subd. 4.Statistical adjustments; student performance data. In developing
11.25 	managing policies and assessment processes to hold schools and districts accountable 
11.26 	for high levels of academic standards under section 120B.021, the commissioner shall 
11.27 	aggregate student data over time to report student performance and growth levels 
11.28 	measured at the school, school district, regional, or and statewide level. When collecting 
11.29 	and reporting the performance data, the commissioner shall: (1) acknowledge the impact 
11.30 	of significant demographic factors such as residential instability, the number of single 
11.31 	parent families, parents' level of education, and parents' income level on school outcomes; 
11.32 	and (2) organize and report the data so that state and local policy makers can understand 
11.33 	the educational implications of changes in districts' demographic profiles over time. Any 
11.34 	report the commissioner disseminates containing summary data on student performance 
11.35 	must integrate student performance and the demographic factors that strongly correlate 
11.36 	with that performance.

12.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.2 	Sec. 7. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter 
12.3 	147, article 8, section 38, is amended to read:
12.4 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
12.5 	GROWTH.
12.6 		Subdivision 1.Adequate yearly progress of schools and students School and 
12.7 	student indicators of growth and achievement. The commissioner must develop 
12.8 	and implement maintain a system for measuring and reporting academic achievement 
12.9 	and individual student progress growth, consistent with the statewide educational 
12.10 	accountability and reporting system. The system components of the system must measure 
12.11 	the adequate yearly progress of schools and  the growth of individual students: students' 
12.12 	current achievement in schools under subdivision 2; and individual students' educational 
12.13 	progress growth over time under subdivision 3. The system also must include statewide 
12.14 	measures of student academic achievement growth that identify schools with high levels 
12.15 	of achievement growth, and also schools with low levels of achievement growth that need 
12.16 	improvement. When determining a school's effect, the data must include both statewide 
12.17 	measures of student achievement and, to the extent annual tests are administered,
12.18 	indicators of achievement growth that take into account a student's prior achievement. 
12.19 	Indicators of achievement and prior achievement must be based on highly reliable 
12.20 	statewide or districtwide assessments. Indicators that take into account a student's prior 
12.21 	achievement must not be used to disregard a school's low achievement or to exclude 
12.22 	a school from a program to improve low achievement levels. The commissioner by 
12.23 	January 15, 2002, must submit a plan for integrating these components to the chairs of 
12.24 	the legislative committees having policy and budgetary responsibilities for elementary 
12.25 	and secondary education.
12.26 		Subd. 2.Expectations for federally mandated student academic achievement.
 12.27 	(a) Each school year, a school district must determine if the student achievement levels 
12.28 	at each school site meet state and local federally mandated expectations. If student 
12.29 	achievement levels at a school site do not meet state and local federally mandated
12.30 	expectations and the site has not made adequate yearly progress for two consecutive 
12.31 	school years, beginning with the 2001-2002 school year, the district must work with the 
12.32 	school site to adopt a plan to raise student achievement levels to meet state and local
12.33 	federally mandated expectations. The commissioner of education shall establish student 
12.34 	academic achievement levels to comply with this paragraph.
13.1 	(b) School sites identified as not meeting federally mandated expectations must 
13.2 	develop continuous improvement plans in order to meet state and local federally mandated
13.3 	expectations for student academic achievement. The department, at a district's request, 
13.4 	must assist the district and the school site in developing a plan to improve student 
13.5 	achievement. The plan must include parental involvement components.
13.6 	(c) The commissioner must:
13.7 	(1) provide assistance to assist school sites and districts identified as not meeting 
13.8 	federally mandated expectations; and
13.9 	(2) provide technical assistance to schools that integrate student progress measures 
13.10 	under subdivision 3 in the school continuous improvement plan.
13.11 	(d) The commissioner shall establish and maintain a continuous improvement Web 
13.12 	site designed to make data on every school and district available to parents, teachers, 
13.13 	administrators, community members, and the general public.
13.14 		Subd. 3.Student progress assessment growth; other state measures. (a) 
13.15 	The state's educational assessment system component measuring individual students' 
13.16 	educational progress must be growth is based, to the extent annual tests are administered,
13.17 	on indicators of achievement growth that show an individual student's prior achievement. 
13.18 	Indicators of achievement and prior achievement must be are based on highly reliable 
13.19 	statewide or districtwide assessments.
13.20 	(b) The commissioner must identify effective models for measuring individual 
13.21 	student progress that enable a school district or school site to perform gains-based 
13.22 	analysis, including evaluating the effects of the teacher, school, and school district on 
13.23 	student achievement over time. At least one model must be a "value-added" assessment 
13.24 	model that reliably estimates those effects for classroom settings where a single teacher 
13.25 	teaches multiple subjects to the same group of students, for team teaching arrangements, 
13.26 	and for other teaching circumstances. use a growth-based value-added system. The 
13.27 	commissioner must apply the state growth norm to students in grades 4 through 8 
13.28 	beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision 
13.29 	6, initially benchmarking the state growth norm to 2006-2007 school year data. The 
13.30 	model must allow the user to:
13.31 	(1) report student growth at and above the state norm; and
13.32 	(2) for all student categories with a cell size of at least 20, report and compare 
13.33 	aggregated and disaggregated state growth data using the nine student categories identified 
13.34 	under the federal 2001 No Child Left Behind Act and two student gender categories of 
13.35 	male and female, respectively. The model must measure the effects that teacher teams 
13.36 	within a grade, teacher teams across an entire grade, the school, and the school district 
14.1 	have on student growth. The model must not compile test results for teacher teams within 
14.2 	a grade or across a grade unless the test results encompass data on three or more teachers.
14.3 	(c) If a district has an accountability plan that includes gains-based analysis or 
14.4 	"value-added" assessment, the commissioner shall, to the extent practicable, incorporate 
14.5 	those measures in determining whether the district or school site meets expectations. The 
14.6 	department must coordinate with the district in evaluating school sites and continuous 
14.7 	improvement plans, consistent with best practices. If a district has an accountability 
14.8 	plan that includes other growth-based value-added analysis, the commissioner may, to 
14.9 	the extent practicable and consistent with this section, incorporate those measures in 
14.10 	determining whether the district or school site shows growth, including accelerated growth.
14.11 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
14.12 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
14.13 	the extent to which current high school graduates are being prepared for postsecondary 
14.14 	academic and career opportunities:
14.15 	(1) a preparation measure indicating the number and percentage of high school 
14.16 	graduates in the most recent school year who completed course work important to 
14.17 	preparing them for postsecondary academic and career opportunities, consistent with the 
14.18 	core academic subjects required for admission to Minnesota's public four-year colleges 
14.19 	and universities as determined by the Office of Higher Education under chapter 136A; and
14.20 	(2) a rigorous coursework measure indicating the number and percentage of high 
14.21 	school graduates in the most recent school year who successfully completed one or more 
14.22 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
14.23 	options including concurrent enrollment, other rigorous courses of study under section 
14.24 	120B.021, subdivision 1a, or industry certification courses or programs.
14.25 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
14.26 	analyze and report separate categories of information using the nine student categories 
14.27 	identified under the federal 2001 No Child Left Behind Act and two student gender 
14.28 	categories of male and female, respectively.
14.29 	(e) When reporting student performance under section 120B.36, subdivision 1, the 
14.30 	commissioner annually, beginning July 1, 2011, must include summary data showing 
14.31 	students' average self-reported sense of school safety, engagement in school, and the 
14.32 	quality of students' relationship with teachers, administrators, and other students. The 
14.33 	commissioner must gather these data consistently from students in grade 4 or 5, in one 
14.34 	grade level in grades 6 through 8, and in one grade level in high school, as determined by 
14.35 	the commissioner in consultation with recognized and qualified experts. All data received, 
15.1 	collected, or created that are used to generate the summary data under this paragraph are 
15.2 	nonpublic data under section 13.02, subdivision 9.
15.3 		Subd. 4.Improving schools. Consistent with the requirements of this section, the 
15.4 	commissioner of education must establish a second achievement benchmark to identify 
15.5 	improving schools. The commissioner must recommend to annually report to the public 
15.6 	and  the legislature by February 15, 2002, indicators in addition to the achievement 
15.7 	benchmark for identifying improving schools, including an indicator requiring a school to 
15.8 	demonstrate ongoing successful use of best teaching practices best practices learned from 
15.9 	those schools that demonstrate accelerated growth compared to the state growth norm.
15.10 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
15.11 	disorders. (a) A district must develop strategies in conjunction with parents of students 
15.12 	with emotional or behavioral disorders and the county board responsible for implementing 
15.13 	sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in 
15.14 	school, when the district has a drop-out rate for students with an emotional or behavioral 
15.15 	disorder in grades 9 through 12 exceeding 25 percent. 
15.16 	(b) A district must develop a plan in conjunction with parents of students with 
15.17 	emotional or behavioral disorders and the local mental health authority to increase the 
15.18 	graduation rates of students with emotional or behavioral disorders. A district with a 
15.19 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
15.20 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
15.21 	to the commissioner.

15.22 	EFFECTIVE DATE. Subdivision 3, paragraph (b), applies to students in the 
15.23 	2009-2010 school year and later. Subdivision 3, paragraph (d), applies to students in the 
15.24 	2010-2011 school year and later. Subdivision 3, paragraph (e), applies to high school 
15.25 	students in the 2009-2010 school year and later, and to students in any grades 4 through 8 
15.26 	in the 2010-2011 school year and later, consistent with the commissioner's grade level 
15.27 	determinations. Subdivision 4 applies in the 2011-2012 school year and later.

15.28 	Sec. 8. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter 
15.29 	146, article 2, section 11, is amended to read:
15.30 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
15.31 		Subdivision 1.School performance report cards. (a) The commissioner shall 
15.32 	use objective criteria based on levels of student performance to report at least student 
15.33 	academic performance under section 120B.35, subdivision 2, the percentages of students 
15.34 	at and above the state growth norm under section 120B.35, subdivision 3, paragraph (b), 
16.1 	school safety and student engagement under section 120B.35, subdivision 3, paragraph 
16.2 	(e), rigorous coursework under section 120B.35, subdivision 3, paragraph (d), two 
16.3 	separate student-to-teacher ratios that clearly indicate the definition of teacher consistent 
16.4 	with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff 
16.5 	characteristics excluding salaries, with a value-added component added no later than 
16.6 	the 2008-2009 school year student enrollment demographics, district mobility, and 
16.7 	extracurricular activities. The report must indicate a school's adequate yearly progress 
16.8 	status, and must not set any designations applicable to high- and low-performing schools 
16.9 	due solely to adequate yearly progress status.
16.10 	(b) The commissioner shall develop, annually update, and post on the department 
16.11 	Web site school performance report cards. 
16.12 	(c) The commissioner must make available the first performance report cards by 
16.13 	November 2003, and during the beginning of each school year thereafter.
16.14 	(d) A school or district may appeal its adequate yearly progress status in writing to 
16.15 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
16.16 	decision to uphold or deny an appeal is final.
16.17 	(e) School performance report cards card data are nonpublic data under section 
16.18 	13.02, subdivision 9, until not later than ten days after the appeal procedure described in 
16.19 	paragraph (d) concludes. The department shall annually post school performance report 
16.20 	cards to its public Web site no later than September 1. 
16.21 		Subd. 2.Adequate yearly progress data. All data the department receives, 
16.22 	collects, or creates for purposes of determining to determine adequate yearly progress 
16.23 	designations status under Public Law 107-110, section 1116, set state growth norms, and 
16.24 	determine student growth are nonpublic data under section 13.02, subdivision 9, until not 
16.25 	later than ten days after the appeal procedure described in subdivision 1, paragraph (d), 
16.26 	concludes. Districts must provide parents sufficiently detailed summary data to permit 
16.27 	parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall 
16.28 	annually post federally mandated adequate yearly progress data and state student growth 
16.29 	data to its public Web site no later than September 1. 

16.30 	EFFECTIVE DATE. This section is effective the day following final enactment. 

16.31 	Sec. 9. Minnesota Statutes 2006, section 120B.362, is amended to read:
16.32 	120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.
16.33 	(a) The commissioner of education must implement a growth-based value-added 
16.34 	assessment program to assist school districts, public schools, and charter schools in 
17.1 	assessing and reporting individual students' growth in academic achievement under section 
17.2 	120B.30, subdivision 1a. The program must use assessments of individual students' 
17.3 	academic achievement to make longitudinal comparisons of each student's academic 
17.4 	growth over time. School districts, public schools, and charter schools may apply to the 
17.5 	commissioner to participate in the initial trial program using a form and in the manner the 
17.6 	commissioner prescribes. The commissioner must select program participants from urban, 
17.7 	suburban, and rural areas throughout the state.
17.8 	(b) The commissioner may issue a request for proposals to contract with an 
17.9 	organization that provides a value-added assessment model that reliably estimates school 
17.10 	and school district effects on students' academic achievement over time. The model the 
17.11 	commissioner selects must accommodate diverse data and must use each student's test 
17.12 	data across grades. Data on individual teachers generated under the model are personnel 
17.13 	data under section 13.43.
17.14 	(c) The contract under paragraph (b) must be consistent with the definition of "best 
17.15 	value" under section 16C.02, subdivision 4.

17.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

17.17 	Sec. 10. Minnesota Statutes 2006, section 122A.21, is amended to read:
17.18 	122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.
17.19 		Subdivision 1.Licensure applications. Each application for the issuance, renewal, 
17.20 	or extension of a license to teach, including applications for licensure via portfolio under 
17.21 	subdivision 2, must be accompanied by a processing fee of $57. Each application for 
17.22 	issuing, renewing, or extending the license of a school administrator or supervisor must 
17.23 	be accompanied by a processing fee in the amount set by the Board of Teaching. The 
17.24 	processing fee for a teacher's license and for the licenses of supervisory personnel must 
17.25 	be paid to the executive secretary of the appropriate board. The executive secretary of 
17.26 	the board shall deposit the fees with the commissioner of finance. The fees as set by the 
17.27 	board are nonrefundable for applicants not qualifying for a license. However, a fee must 
17.28 	be refunded by the commissioner of finance in any case in which the applicant already 
17.29 	holds a valid unexpired license. The board may waive or reduce fees for applicants who 
17.30 	apply at the same time for more than one license.
17.31 		Subd. 2.Licensure via portfolio. (a) A candidate seeking licensure via portfolio 
17.32 	must submit a $75 fee to the Educator Licensing Division at the department to determine 
17.33 	the candidate's eligibility for licensure via portfolio. An eligible candidate may use 
18.1 	licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent 
18.2 	with the applicable Board of Teaching licensure rules.
18.3 	(b) A candidate for initial licensure must submit to the Educator Licensing Division 
18.4 	at the department one portfolio demonstrating pedagogical competence and one portfolio 
18.5 	demonstrating content competence.
18.6 	(c) A candidate seeking to add a licensure field must submit to the Educator 
18.7 	Licensing Division at the department one portfolio demonstrating content competence.
18.8 	(d) A candidate must pay to the executive secretary of the Board of Teaching a 
18.9 	$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio 
18.10 	submitted subsequently. The fees must be paid to the executive secretary of the Board of 
18.11 	Teaching. The revenue generated from the fee must be deposited in an education licensure 
18.12 	portfolio account in the special revenue fund. The fees set by the Board of Teaching are 
18.13 	nonrefundable for applicants not qualifying for a license. The Board of Teaching may 
18.14 	waive or reduce fees for candidates based on financial need.

18.15 	Sec. 11. [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES; 
18.16 	WEB SITE.
18.17 	When available, a school district must post its current local school wellness policy 
18.18 	on its Web site.

18.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.20 	Sec. 12. Minnesota Statutes 2006, section 123B.02, subdivision 21, is amended to read:
18.21 		Subd. 21.Wind energy conversion system. The board, or more than one board 
18.22 	acting jointly under the authority granted by section 471.59, may construct, acquire, own 
18.23 	in whole or in part, operate, and sell and retain and spend the payment received from 
18.24 	selling energy from a wind energy conversion system, as defined in section 216C.06, 
18.25 	subdivision 19. The board's share of the installed capacity of the wind energy conversion 
18.26 	systems authorized by this subdivision must not exceed 3.3 megawatts of nameplate 
18.27 	capacity. A board owning, operating, or selling energy from a wind energy conversion 
18.28 	system must integrate information about wind energy conversion systems in its educational 
18.29 	programming. The board, or more than one board acting jointly under the authority 
18.30 	granted by section 471.59, may be a limited partner in a partnership, a member of a limited 
18.31 	liability company, or a shareholder in a corporation, established for the sole purpose of 
18.32 	constructing, acquiring, owning in whole or in part, financing, or operating a wind energy 
18.33 	conversion system for the benefit of the district or districts in accordance with this section.

19.1 	EFFECTIVE DATE. This section is effective the day following final enactment. 

19.2 	Sec. 13. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1, 
19.3 	is amended to read:
19.4 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
19.5 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
19.6 	school board. The authority for selection and employment of a superintendent must be 
19.7 	vested in the board in all cases. An individual employed by a board as a superintendent 
19.8 	shall have an initial employment contract for a period of time no longer than three years 
19.9 	from the date of employment. Any subsequent employment contract must not exceed a 
19.10 	period of three years. A board, at its discretion, may or may not renew an employment 
19.11 	contract. A board must not, by action or inaction, extend the duration of an existing 
19.12 	employment contract. Beginning 365 days prior to the expiration date of an existing 
19.13 	employment contract, a board may negotiate and enter into a subsequent employment 
19.14 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
19.15 	must be contingent upon the employee completing the terms of an existing contract. If a 
19.16 	contract between a board and a superintendent is terminated prior to the date specified in 
19.17 	the contract, the board may not enter into another superintendent contract with that same 
19.18 	individual that has a term that extends beyond the date specified in the terminated contract. 
19.19 	A board may terminate a superintendent during the term of an employment contract for any 
19.20 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
19.21 	not rely upon an employment contract with a board to assert any other continuing contract 
19.22 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
19.23 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
19.24 	to the contrary, no individual shall have a right to employment as a superintendent based 
19.25 	on order of employment in any district. If two or more districts enter into an agreement for 
19.26 	the purchase or sharing of the services of a superintendent, the contracting districts have 
19.27 	the absolute right to select one of the individuals employed to serve as superintendent 
19.28 	in one of the contracting districts and no individual has a right to employment as the 
19.29 	superintendent to provide all or part of the services based on order of employment in a 
19.30 	contracting district. The superintendent of a district shall perform the following: 
19.31 	(1) visit and supervise the schools in the district, report and make recommendations 
19.32 	about their condition when advisable or on request by the board;
19.33 	(2) recommend to the board employment and dismissal of teachers;
19.34 	(3) superintend school grading practices and examinations for promotions;
19.35 	(4) make reports required by the commissioner; and
20.1 	(5) by January 10, submit an annual report to the commissioner in a manner 
20.2 	prescribed by the commissioner, in consultation with school districts, identifying the 
20.3 	expenditures that the district requires to ensure an 80 percent student passage rate on 
20.4 	the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the 
20.5 	district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of 
20.6 	expenditures that the district requires to attain the targeted student passage rate; and
20.7 	(6) perform other duties prescribed by the board.

20.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.9 	Sec. 14. Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:
20.10 		Subdivision 1.To qualify. (a) An independent or special school district qualifies to 
20.11 	participate in the alternative facilities bonding and levy program if the district has:
20.12 	(1) more than 66 students per grade;
20.13 	(2) over 1,850,000 square feet of space and the average age of building space is 15 
20.14 	years or older or over 1,500,000 square feet and the average age of building space is 
20.15 	35 years or older;
20.16 	(3) insufficient funds from projected health and safety revenue and capital facilities 
20.17 	revenue to meet the requirements for deferred maintenance, to make accessibility 
20.18 	improvements, or to make fire, safety, or health repairs; and
20.19 	(4) a ten-year facility plan approved by the commissioner according to subdivision 2.
20.20 	(b) An independent or special school district not eligible to participate in the 
20.21 	alternative facilities bonding and levy program under paragraph (a) qualifies for limited 
20.22 	participation in the program if the district has:
20.23 	(1) one or more health and safety projects with an estimated cost of $500,000 or 
20.24 	more per site that would qualify for health and safety revenue except for the project size 
20.25 	limitation in section 123B.57, subdivision 1, paragraph (b); and 
20.26 	(2) insufficient funds from capital facilities revenue to fund those projects.
20.27 	(c) Notwithstanding the square footage limitation in paragraph (a), clause (2), 
20.28 	a school district that qualified for eligibility under paragraph (a) as of July 1, 2007, 
20.29 	remains eligible for funding under this section as long as the district continues to meet 
20.30 	the requirements of paragraph (a), clauses (1), (3), and (4).

20.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.32 	Sec. 15. Minnesota Statutes 2006, section 123B.62, is amended to read:
20.33 	123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.
21.1 	(a) In addition to other bonding authority, with approval of the commissioner, a 
21.2 	district may issue general obligation bonds for certain capital projects under this section. 
21.3 	The bonds must be used only to make capital improvements including:
21.4 	(1) under section 126C.10, subdivision 14, total operating capital revenue uses 
21.5 	specified in clauses (4), (6), (7), (8), (9), and (10); 
21.6 	(2) the cost of energy modifications;
21.7 	(3) improving disability accessibility to school buildings; and
21.8 	(4) bringing school buildings into compliance with life and safety codes and fire 
21.9 	codes.
21.10 	(b) Before a district issues bonds under this subdivision, it must publish notice 
21.11 	of the intended projects, the amount of the bond issue, and the total amount of district 
21.12 	indebtedness.
21.13 	(c) A bond issue tentatively authorized by the board under this subdivision becomes 
21.14 	finally authorized unless a petition signed by more than 15 percent of the registered voters 
21.15 	of the district is filed with the school board within 30 days of the board's adoption of a 
21.16 	resolution stating the board's intention to issue bonds. The percentage is to be determined 
21.17 	with reference to the number of registered voters in the district on the last day before the 
21.18 	petition is filed with the board. The petition must call for a referendum on the question of 
21.19 	whether to issue the bonds for the projects under this section. The approval of 50 percent 
21.20 	plus one of those voting on the question is required to pass a referendum authorized 
21.21 	by this section.
21.22 	(d) The bonds must be paid off within ten15 years of issuance. The bonds must be 
21.23 	issued in compliance with chapter 475, except as otherwise provided in this section. A tax 
21.24 	levy must be made for the payment of principal and interest on the bonds in accordance 
21.25 	with section 475.61. The sum of the tax levies under this section and section 123B.61 for 
21.26 	each year must not exceed the limit specified in section 123B.61. The levy for each year 
21.27 	must be reduced as provided in section 123B.61. A district using an excess amount in the 
21.28 	debt redemption fund to retire the bonds shall report the amount used for this purpose to 
21.29 	the commissioner by July 15 of the following fiscal year. A district having an outstanding 
21.30 	capital loan under section 126C.69 or an outstanding debt service loan under section 
21.31 	126C.68 must not use an excess amount in the debt redemption fund to retire the bonds. 
21.32 	(e) Notwithstanding paragraph (d), bonds issued by a district within the first 
21.33 	five years following voter approval of a combination according to section 123A.37, 
21.34 	subdivision 2, must be paid off within 20 years of issuance. All the other provisions and 
21.35 	limitation of paragraph (d) apply. 

21.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

22.1 	Sec. 16. Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:
22.2 		Subd. 3.Pupils in adjoining states. Except as provided under an agreement with 
22.3 	an adjoining state under section 124D.041, a non-Minnesota pupil who resides in an 
22.4 	adjoining state in a district that borders Minnesota may enroll in a Minnesota district if 
22.5 	either the board of the district in which the pupil resides or state in which the pupil resides 
22.6 	pays tuition to the district in which the pupil is enrolled.

22.7 	Sec. 17. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:
22.8 		Subd. 6.Tuition payments. (a) In each odd-numbered year, before March 1, the 
22.9 	commissioner must agree to rates of tuition for Minnesota elementary and secondary 
22.10 	pupils attending in other states for the next two fiscal years when the other state agrees to 
22.11 	negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the 
22.12 	designated authority in each state for pupils who reside in an adjoining state and enroll in 
22.13 	a Minnesota district. The rates must be at least equal to the tuition specified in section 
22.14 	124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate, 
22.15 	a Minnesota school district may negotiate a tuition rate with the school district in the other 
22.16 	state that sends a pupil to or receives a pupil from the Minnesota school district. The 
22.17 	tuition rate for a pupil with a disability must be equal to the actual cost of instruction and 
22.18 	services provided. The resident district of a Minnesota pupil attending in another state 
22.19 	under this section must pay the amount of tuition agreed upon in this section to the district 
22.20 	of attendance, prorated on the basis of the proportion of the school year attended. 
22.21 	(b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached 
22.22 	between the state of Minnesota and an adjoining state pursuant to section 124D.041, 
22.23 	the provisions of section 124D.041 and the agreement shall apply to all enrollment 
22.24 	transfers between Minnesota and the adjoining state, and provisions of paragraph (a) 
22.25 	and subdivision 9 shall not apply.

22.26 	Sec. 18. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:
22.27 		Subd. 8.Effective if reciprocal. This section is effective with respect to South 
22.28 	Dakota upon enactment of provisions by South Dakota that the commissioner determines 
22.29 	are essentially similar to the provisions for Minnesota pupils in this section. This section 
22.30 	is effective with respect to any other bordering state upon enactment of provisions by the 
22.31 	bordering state that the commissioner determines are essentially similar to the provisions 
22.32 	for Minnesota pupils in this section.

22.33 	Sec. 19. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:
23.1 		Subd. 9.Appeal to the commissioner. If a Minnesota school district cannot agree 
23.2 	with an adjoining state on a tuition rate for a Minnesota student attending school in that 
23.3 	state and that state has met the requirements in subdivision 8, then the student's parent or 
23.4 	guardian may request that the commissioner agree on set a tuition rate for the student. The 
23.5 	Minnesota district must pay the amount of tuition the commissioner agrees upon sets.

23.6 	Sec. 20. [124D.041] RECIPROCITY WITH ADJOINING STATES.
23.7 		Subdivision 1.Agreements. (a) The commissioner may enter into an agreement 
23.8 	with the designated authority from an adjoining state to establish an enrollment options 
23.9 	program between Minnesota and the adjoining state. Any agreement entered into pursuant 
23.10 	to this section must specify the following:
23.11 	(1) for students who are not residents of Minnesota, the enrollment options program 
23.12 	applies only to a student whose resident school district borders Minnesota;
23.13 	(2) the commissioner must negotiate equal, reciprocal rates with the designated 
23.14 	authority from the adjoining state;
23.15 	(3) if the adjoining state sends more students to Minnesota than Minnesota sends to 
23.16 	the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed 
23.17 	upon under clause (2) for the excess number of students sent to Minnesota;
23.18 	(4) if Minnesota sends more students to the adjoining state than the adjoining state 
23.19 	sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed 
23.20 	upon under clause (2) for the excess number of students sent to the adjoining state;
23.21 	(5) the application procedures for the enrollment options program between 
23.22 	Minnesota and the adjoining state;
23.23 	(6) the reasons for which an application for the enrollment options program between 
23.24 	Minnesota and the adjoining may be denied; and
23.25 	(7) that a Minnesota school district is not responsible for transportation for any 
23.26 	resident student attending school in an adjoining state under the provisions of this section. 
23.27 	A Minnesota school district may, at its discretion, provide transportation services for 
23.28 	such a student.
23.29 	(b) Any agreement entered into pursuant to this section may specify additional terms 
23.30 	relating to any student in need of special education and related services pursuant to chapter 
23.31 	125A.  Any additional terms must apply equally to both states.
23.32 		Subd. 2.Pupil accounting. (a) Any student from an adjoining state enrolled in 
23.33 	Minnesota pursuant to this section is included in the receiving school district's average 
23.34 	daily membership and pupil units according to section 126C.05 as if the student were 
24.1 	a resident of another Minnesota school district attending the receiving school district 
24.2 	under section 124D.03.
24.3 	(b) Any Minnesota resident student enrolled in an adjoining state pursuant to this 
24.4 	section is included in the resident school district's average daily membership and pupil 
24.5 	units according to section 126C.05 as if the student were a resident of the district attending 
24.6 	another Minnesota school district under section 124D.03.
24.7 		Subd. 3.Procedures. (a) The Department of Education must establish procedures 
24.8 	relating to the application process, the collection or payment of funds under the provisions 
24.9 	of any agreement established pursuant to this section, and the collection of data necessary 
24.10 	to implement any agreement established pursuant to this section.
24.11 	(b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established 
24.12 	between Minnesota and an adjoining state pursuant to this section, the provisions of this 
24.13 	section and the agreement shall apply to all enrollment transfers between Minnesota and 
24.14 	the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary, 
24.15 	including provisions relating to tuition payments, shall not apply.
24.16 	(c) Notwithstanding paragraph (a), any payments to adjoining states under this 
24.17 	section shall be made according to section 127A.45, subdivision 16.
24.18 	(d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b), 
24.19 	and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not 
24.20 	apply to enrollment transfers between Minnesota and a school district in an adjoining state 
24.21 	enrolling fewer than 150 pupils that is exempted from participation in the program under 
24.22 	the laws of the adjoining state.

24.23 	Sec. 21. Minnesota Statutes 2006, section 124D.05, is amended by adding a 
24.24 	subdivision to read:
24.25 		Subd. 2a.Exception. Notwithstanding subdivisions 1 and 2, if an agreement 
24.26 	is reached between the state of Minnesota and an adjoining state pursuant to section 
24.27 	124D.041, the provisions of section 124D.041 and the agreement shall apply to all 
24.28 	enrollment transfers between Minnesota and the adjoining state, and provisions of 
24.29 	subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments, 
24.30 	shall not apply.

24.31 	Sec. 22. Minnesota Statutes 2006, section 124D.10, subdivision 20, is amended to read:
24.32 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
24.33 	makes a written request for an extended leave of absence to teach at a charter school, 
24.34 	the district must grant the leave. The district must grant a leave not to exceed a total of 
25.1 	five years. Any request to extend the leave shall be granted only at the discretion of the 
25.2 	school board. The district may require that the request for a leave or extension of leave 
25.3 	be made up to 90 days before the teacher would otherwise have to report for duty before 
25.4 	February 1 in the school year preceding the school year in which the teacher wishes to 
25.5 	return, or before February 1 of the calendar year in which the teacher's leave is scheduled 
25.6 	to terminate. Except as otherwise provided in this subdivision and except for section 
25.7 	122A.46, subdivision 7, the leave is governed by section 122A.46, including, but not 
25.8 	limited to, reinstatement, notice of intention to return, seniority, salary, and insurance. 
25.9 	During a leave, the teacher may continue to aggregate benefits and credits in the 
25.10 	Teachers' Retirement Association account by paying both the employer and employee 
25.11 	contributions based upon the annual salary of the teacher for the last full pay period before 
25.12 	the leave began. The retirement association may impose reasonable requirements to 
25.13 	efficiently administer this subdivision.

25.14 	EFFECTIVE DATE. This section is effective for the 2008-2009 school year and 
25.15 	later.

25.16 	Sec. 23. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, 
25.17 	is amended to read:
25.18 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
25.19 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 
25.20 	aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during 
25.21 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
25.22 	section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 
25.23 	2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 
25.24 	year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, 
25.25 	subdivision 3. The state total adult basic education aid for fiscal year 2008 equals 
25.26 	$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 
25.27 	adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 
25.28 	state total adult basic education aid for later fiscal years equals:
25.29 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
25.30 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
25.31 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
25.32 	(2) the lesser of:
25.33 	(i) 1.03; or
26.1 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
26.2 	program year to the state total contact hours in the second prior program year the average 
26.3 	growth in state total contact hours over the prior ten program years.
26.4 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
26.5 	aid must be set aside for adult basic education supplemental service grants under section 
26.6 	124D.522.
26.7 	(b) The state total adult basic education aid, excluding basic population aid, equals 
26.8 	the difference between the amount computed in paragraph (a), and the state total basic 
26.9 	population aid under subdivision 2.

26.10 	Sec. 24. Minnesota Statutes 2006, section 124D.55, is amended to read:
26.11 	124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
26.12 	The commissioner shall pay 60 percent of the fee that is charged to an eligible 
26.13 	individual for the full battery of a general education development (GED) test, but not 
26.14 	more than $20$40 for an eligible individual.

26.15 	Sec. 25. Minnesota Statutes 2006, section 125A.65, is amended by adding a 
26.16 	subdivision to read:
26.17 		Subd. 11.Third-party reimbursement. The Minnesota State Academies must seek 
26.18 	reimbursement under section 125A.21 from third parties for the cost of services provided 
26.19 	by the Minnesota State Academies whenever the services provided are otherwise covered 
26.20 	by a child's public or private health plan.

26.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
26.22 	for revenue in fiscal years 2008 and later.

26.23 	Sec. 26. Minnesota Statutes 2006, section 125A.76, is amended by adding a 
26.24 	subdivision to read:
26.25 		Subd. 4a.Adjustments for tuition reciprocity with adjoining states. (a) If an 
26.26 	agreement is reached between the state of Minnesota and an adjoining state pursuant to 
26.27 	section 124D.041 that requires a special education tuition payment from the state of 
26.28 	Minnesota to the adjoining state, the tuition payment shall be made from the special 
26.29 	education aid appropriation for that year, and the state total special education aid under 
26.30 	subdivision 4 shall be reduced by the amount of the payment.
26.31 	(b) If an agreement is reached between the state of Minnesota and an adjoining state 
26.32 	pursuant to section 124D.041 that requires a special education tuition payment from 
27.1 	an adjoining state to the state of Minnesota, the special education aid appropriation for 
27.2 	that year and the state total special education aid under subdivision 4  shall be increased 
27.3 	by the amount of the payment.
27.4 	(c) If an agreement is reached between the state of Minnesota and an adjoining state 
27.5 	pursuant to section 124D.041 that requires special education tuition payments to be made 
27.6 	between the two states and not between districts in the two states, the special education aid 
27.7 	for a Minnesota school district serving a student with a disability from the adjoining state 
27.8 	shall be calculated according to section 127A.47, subdivision 7, except that no reduction 
27.9 	shall be made in the special education aid paid to the resident district.

27.10 	Sec. 27. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
27.11 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
27.12 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
27.13 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
27.14 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
27.15 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
27.16 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
27.17 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
27.18 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
27.19 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
27.20 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
27.21 	(b) A district's transition revenue for fiscal year years 2006 and later through 2009
27.22 	equals the sum of the product of the district's transition allowance times the district's 
27.23 	adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue 
27.24 	under subdivision 31a.
27.25 	(c) A district's transition revenue for fiscal year 2010 and later equals the sum of 
27.26 	the product of the district's transition allowance times the district's adjusted marginal cost 
27.27 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a 
27.28 	plus the district's transition for tuition reciprocity revenue under subdivision 31c.

27.29 	Sec. 28. Minnesota Statutes 2006, section 126C.10, is amended by adding a 
27.30 	subdivision to read:
27.31 		Subd. 31c.Transition for tuition reciprocity revenue. For the first year that a 
27.32 	tuition reciprocity agreement with an adjoining state is in effect under section 124D.041 
27.33 	and later, a school district's transition for tuition reciprocity revenue equals the greater of 
27.34 	zero or the difference between the sum of the general education revenue and net tuition 
28.1 	revenue the district would have received for pupils enrolled under section 124D.041 for 
28.2 	the first year the agreement is in effect if the agreement had not been in effect, and the 
28.3 	sum of the district's general education revenue and net tuition revenue for the first year 
28.4 	the agreement is in effect.

28.5 	Sec. 29. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
28.6 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
28.7 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
28.8 	referendum called for the purpose. The referendum may be called by the board or shall be 
28.9 	called by the board upon written petition of qualified voters of the district. The referendum 
28.10 	must be conducted one or two calendar years before the increased levy authority, if 
28.11 	approved, first becomes payable. Only one election to approve an increase may be held 
28.12 	in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 
28.13 	referendum must be held on the first Tuesday after the first Monday in November. The 
28.14 	ballot must state the maximum amount of the increased revenue per resident marginal cost 
28.15 	pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 
28.16 	per resident marginal cost pupil unit that differs from year to year over the number of 
28.17 	years for which the increased revenue is authorized or may state that the amount shall 
28.18 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be 
28.19 	the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot 
28.20 	may state that existing referendum levy authority is expiring. In this case, the ballot may 
28.21 	also compare the proposed levy authority to the existing expiring levy authority, and 
28.22 	express the proposed increase as the amount, if any, over the expiring referendum levy 
28.23 	authority. The ballot must designate the specific number of years, not to exceed ten, for 
28.24 	which the referendum authorization applies. The ballot, including a ballot on the question 
28.25 	to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate 
28.26 	the term "per resident marginal cost pupil unit" as "per pupil." The notice required under 
28.27 	section 275.60 may be modified to read, in cases of renewing existing levies at the same 
28.28 	amount per pupil as in the previous year:
28.29 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
28.30 	FOR A PROPERTY TAX INCREASE ARE RENEWING AN EXISTING 
28.31 	PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR 
28.32 	OPERATING REFERENDUM AMOUNT PER PUPIL FROM ITS LEVEL IN 
28.33 	THE PREVIOUS YEAR."
28.34 	The ballot may contain a textual portion with the information required in this 
28.35 	subdivision and a question stating substantially the following:
29.1 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
29.2 	School District No. .., be approved?"
29.3 	If approved, an amount equal to the approved revenue per resident marginal cost 
29.4 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
29.5 	the year after the levy is certified shall be authorized for certification for the number of 
29.6 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
29.7 	subsequent referendum.
29.8 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
29.9 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
29.10 	and the proposed revenue increase. The board need not mail more than one notice to any 
29.11 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
29.12 	those shown to be owners on the records of the county auditor or, in any county where 
29.13 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
29.14 	Every property owner whose name does not appear on the records of the county auditor 
29.15 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
29.16 	has requested in writing that the county auditor or county treasurer, as the case may be, 
29.17 	include the name on the records for this purpose. The notice must project the anticipated 
29.18 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
29.19 	homesteads, apartments, and commercial-industrial property within the school district.
29.20 	The notice for a referendum may state that an existing referendum levy is expiring 
29.21 	and project the anticipated amount of increase over the existing referendum levy in 
29.22 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
29.23 	homesteads, apartments, and commercial-industrial property within the district.
29.24 	The notice must include the following statement: "Passage of this referendum will 
29.25 	result in an increase in your property taxes." However, in cases of renewing existing 
29.26 	levies, the notice may include the following statement: "Passage of this referendum may
29.27 	result in an increase in your property taxes."renews an existing operating referendum at 
29.28 	the same amount per pupil as in the previous year."
29.29 	(c) A referendum on the question of revoking or reducing the increased revenue 
29.30 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
29.31 	by the board upon the written petition of qualified voters of the district. A referendum to 
29.32 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
29.33 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
29.34 	voters of the district pursuant to paragraph (a) must be available to the school district at 
29.35 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
30.1 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
30.2 	referendum revenue for any specific year and for years thereafter.
30.3 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
30.4 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
30.5 	the petition is filed with the board. A referendum invoked by petition must be held on the 
30.6 	date specified in paragraph (a).
30.7 	(e) The approval of 50 percent plus one of those voting on the question is required to 
30.8 	pass a referendum authorized by this subdivision.
30.9 	(f) At least 15 days before the day of the referendum, the district must submit a 
30.10 	copy of the notice required under paragraph (b) to the commissioner and to the county 
30.11 	auditor of each county in which the district is located. Within 15 days after the results 
30.12 	of the referendum have been certified by the board, or in the case of a recount, the 
30.13 	certification of the results of the recount by the canvassing board, the district must notify 
30.14 	the commissioner of the results of the referendum.

30.15 	EFFECTIVE DATE. This section is effective for elections conducted on or after 
30.16 	July 1, 2008.

30.17 	Sec. 30. Minnesota Statutes 2006, section 126C.21, subdivision 1, is amended to read:
30.18 		Subdivision 1.Permanent school fund. The An amount of money equal to $36 
30.19 	times the district's pupils in average daily membership received by a district as income 
30.20 	from the permanent school fund for any year must be deducted from the general education 
30.21 	aid earned by the district for the same year or from aid earned from other state sources.

30.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010.

30.23 	Sec. 31. Minnesota Statutes 2007 Supplement, section 126C.21, subdivision 3, is 
30.24 	amended to read:
30.25 		Subd. 3.County apportionment deduction. Each year the amount of money 
30.26 	apportioned to a district for that year pursuant to sections section 127A.34, subdivision 2, 
30.27 	and 272.029, subdivision 6, must be deducted from the general education aid earned by 
30.28 	that district for the same year or from aid earned from other state sources. 

30.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

30.30 	Sec. 32. Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:
30.31 	126C.44 SAFE SCHOOLS LEVY.
31.1 	(a) Each district may make a levy on all taxable property located within the district 
31.2 	for the purposes specified in this section. The maximum amount which may be levied 
31.3 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
31.4 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
31.5 	used for directly funding the following purposes or for reimbursing the cities and counties 
31.6 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
31.7 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
31.8 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
31.9 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
31.10 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
31.11 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
31.12 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
31.13 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
31.14 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
31.15 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
31.16 	dependency counselors to help provide early responses to problems. For expenditures 
31.17 	under clause (1), the district must initially attempt to contract for services to be provided 
31.18 	by peace officers or sheriffs with the police department of each city or the sheriff's 
31.19 	department of the county within the district containing the school receiving the services. If 
31.20 	a local police department or a county sheriff's department does not wish to provide the 
31.21 	necessary services, the district may contract for these services with any other police or 
31.22 	sheriff's department located entirely or partially within the school district's boundaries. 
31.23 	(b) A school district that is a member of an intermediate school district may 
31.24 	include in its authority under this section the costs associated with safe schools activities 
31.25 	authorized under paragraph (a) for intermediate school district programs. This authority 
31.26 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
31.27 	This authority is in addition to any other authority authorized under this section. Revenue 
31.28 	raised under this paragraph must be transferred to the intermediate school district.
31.29 	(c) If A school district spendsmust set aside at least $3 per adjusted marginal cost 
31.30 	pupil unit of the safe schools levy proceeds for the purposes authorized under paragraph 
31.31 	(a), clause (6),. The district must annually certify that its total spending on services 
31.32 	provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 
31.33 	its expenditures for these purposes, excluding amounts spent under this section, in the 
31.34 	previous year plus the amount spent under this section.

31.35 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010.

32.1 	Sec. 33. Minnesota Statutes 2006, section 126C.51, is amended to read:
32.2 	126C.51 APPLICATION OF LIMITING TAX LEGISLATION.
32.3 	Notwithstanding the provisions of section 471.69 or 471.75, or of any other 
32.4 	provision of law which by per capita limitation, local tax rate limitation, or otherwise, 
32.5 	limits the power of a district to incur any debt or to issue any warrant or order, a school 
32.6 	district or intermediate school district has the powers in sections 126C.50 to 126C.56
32.7 	specifically conferred upon it and all powers incident and necessary to carrying out the 
32.8 	purposes of sections 126C.50 to 126C.56. 

32.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.10 	Sec. 34. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:
32.11 		Subd. 2.Limitations. The board of any school district may also borrow money 
32.12 	in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in 
32.13 	anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of 
32.14 	federal school aids to be distributed by or through the department. The aggregate of such 
32.15 	borrowings under this subdivision shall never exceed 75 percent of such aids which are 
32.16 	receivable by said school district in the schoolfiscal year (from July 1 to June 30) in which 
32.17 	the money is borrowed, as estimated and certified by the commissioner. 

32.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.19 	Sec. 35. Minnesota Statutes 2006, section 126C.52, is amended by adding a 
32.20 	subdivision to read:
32.21 		Subd. 3.Intermediate school districts. (a) The board of an intermediate school 
32.22 	district may borrow money in the manner and subject to the limitations set forth in 
32.23 	sections 126C.50 to 126C.56 in anticipation of the receipt of:
32.24 	(1) state aids for schools as defined in Minnesota Statutes;
32.25 	(2) federal school aids to be distributed by or through the department; and
32.26 	(3) membership fees and tuition payments from its member school districts.
32.27 	The aggregate of such borrowings under this subdivision shall never exceed 75 
32.28 	percent of such aids, fees, and tuition payments which are receivable by the intermediate 
32.29 	school district in the fiscal year in which the money is borrowed, as estimated and certified 
32.30 	by the commissioner.
32.31 	(b) The board of an intermediate school district may, upon receipt of a written 
32.32 	resolution by each of its member school districts, pledge the member district's full faith 
32.33 	and credit and unlimited taxing powers to repay its pro rata share of any certificates issued 
33.1 	or the amount paid by the state under section 126C.55, subdivision 2, plus interest, if the 
33.2 	revenues specified in paragraph (a) and any other revenues of the intermediate school 
33.3 	district are insufficient to do so.

33.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.5 	Sec. 36. Minnesota Statutes 2006, section 126C.53, is amended to read:
33.6 	126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF 
33.7 	INDEBTEDNESS.
33.8 	The board of a school district or intermediate school district may authorize and 
33.9 	effect such borrowing, and may issue such certificates of indebtedness upon passage of 
33.10 	a resolution specifying the amount and purposes for which it deems such borrowing is 
33.11 	necessary. The resolution must be adopted by a vote of at least two-thirds of its members. 
33.12 	The board must fix the amount, date, maturity, form, denomination, and other details of 
33.13 	the certificates of indebtedness, not inconsistent with this chapter. The board must fix the 
33.14 	date and place for receipt of bids for the purchase of the certificates when bids are required 
33.15 	and direct the clerk to give notice of the date and place for bidding.

33.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.17 	Sec. 37. Minnesota Statutes 2006, section 126C.55, is amended to read:
33.18 	126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL 
33.19 	DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.
33.20 		Subdivision 1.Definitions. For the purposes of this section, the term "debt 
33.21 	obligation" means:
33.22 	(1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;
33.23 	(2) a certificate of participation issued under section 126C.40, subdivision 6; or 
33.24 	(3) a general obligation bond.
33.25 		Subd. 2.Notifications; payment; appropriation. (a) If a school district or 
33.26 	intermediate school district believes that it may be unable to make a principal or interest 
33.27 	payment on any outstanding debt obligation on the date that payment is due, it must 
33.28 	notify the commissioner as soon as possible, but not less than 15 working days before the 
33.29 	date that principal or interest payment is due. The notice must include the name of the
33.30 	school district or intermediate school district, an identification of the debt obligation issue 
33.31 	in question, the date the payment is due, the amount of principal and interest due on the 
33.32 	payment date, the amount of principal or interest that the school district or intermediate 
33.33 	school district will be unable to repay on that date, the paying agent for the debt obligation, 
34.1 	the wire transfer instructions to transfer funds to that paying agent, and an indication as to 
34.2 	whether a payment is being requested by the school district or intermediate school district
34.3 	under this section. If a paying agent becomes aware of a potential default, it shall inform 
34.4 	the commissioner of that fact. After receipt of a notice which requests a payment under 
34.5 	this section, after consultation with the school district or intermediate school district and 
34.6 	the paying agent, and after verification of the accuracy of the information provided, the 
34.7 	commissioner shall notify the commissioner of finance of the potential default. The notice 
34.8 	must include a final figure as to the amount due that the school district or intermediate 
34.9 	school district will be unable to repay on the date due.
34.10 	(b) Except as provided in subdivision 9, upon receipt of this notice from the 
34.11 	commissioner, the commissioner of finance shall issue a warrant and authorize the 
34.12 	commissioner of education to pay to the paying agent for the debt obligation the specified 
34.13 	amount on or before the date due. The amounts needed for the purposes of this subdivision 
34.14 	are annually appropriated to the department from the state general fund.
34.15 	(c) The Departments of Education and Finance must jointly develop detailed 
34.16 	procedures for school districts and intermediate school districts to notify the state that 
34.17 	they have obligated themselves to be bound by the provisions of this section, procedures 
34.18 	for school districts or intermediate school districts and paying agents to notify the state 
34.19 	of potential defaults and to request state payment under this section, and procedures 
34.20 	for the state to expedite payments to prevent defaults. The procedures are not subject 
34.21 	to chapter 14.
34.22 		Subd. 3.School district bound; interest rate on state paid amount. If, at the 
34.23 	request of a school district or intermediate school district, the state has paid part or all of 
34.24 	the principal or interest due on a district's debt obligation on a specific date, the school
34.25 	district or the intermediate school district is bound by all provisions of this section and the 
34.26 	amount paid shall bear taxable interest from the date paid until the date of repayment at 
34.27 	the invested cash rate as it is certified by the commissioner of finance. Interest shall only 
34.28 	accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4 
34.29 	and other payments received from the school district or intermediate school district.
34.30 		Subd. 4.Pledge of district's full faith and credit. If, at the request of a school 
34.31 	district or intermediate school district, the state has paid part or all of the principal or 
34.32 	interest due on a district's debt obligation on a specific date, the pledge of the full faith 
34.33 	and credit and unlimited taxing powers of the school district or the intermediate school 
34.34 	district to repay the principal and interest due on those debt obligations shall also, without 
34.35 	an election or the requirement of a further authorization, become a pledge of the full faith 
34.36 	and credit and unlimited taxing powers of the school district or the intermediate school 
35.1 	district to repay to the state the amount paid, with interest. Amounts paid by the state must 
35.2 	be repaid in the order in which the state payments were made.
35.3 		Subd. 4a.Aid reduction for repayment. (a) Except as provided in this subdivision, 
35.4 	the state must reduce the state aid payable to the school district or intermediate school 
35.5 	district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273 
35.6 	by the amount paid by the state under this section on behalf of the district, plus the interest 
35.7 	due on it, and the amount reduced must revert from the appropriate account to the state 
35.8 	general fund. Payments from the school district endowment fund or any federal aid 
35.9 	payments shall not be reduced.
35.10 	(b) For an intermediate school district, the state aid payable to the intermediate 
35.11 	school district must first be reduced, before any reduction is made to the state aids payable 
35.12 	to the member districts. If the state aid payable to the intermediate school district is 
35.13 	not sufficient to repay the state, state aid payable to member districts may be reduced 
35.14 	proportionately based on the ratio of each member district's adjusted net tax capacity to 
35.15 	the total adjusted net tax capacity of all member districts.
35.16 	(c) If, after review of the financial situation of the school district or intermediate 
35.17 	school district, the commissioner advises the commissioner of finance that a total reduction 
35.18 	of aids would cause an undue hardship on or an undue disruption of the educational 
35.19 	program of the district, the commissioner, with the approval of the commissioner of 
35.20 	finance, may establish a different schedule for reduction of aids to repay the state. The 
35.21 	amount of aids to be reduced is decreased by any amounts repaid to the state by the district 
35.22 	from other revenue sources.
35.23 		Subd. 6.Tax levy for repayment. (a) With the approval of the commissioner, a 
35.24 	district may levy in the year the state makes a payment under this section an amount up to 
35.25 	the amount necessary to provide funds for the repayment of the amount paid by the state 
35.26 	plus interest through the date of estimated repayment by the district. The proceeds of this 
35.27 	levy may be used only for this purpose unless they are in excess of the amount actually 
35.28 	due, in which case the excess shall be used to repay other state payments made under this 
35.29 	section or shall be deposited in the debt redemption fund of the school district. This levy 
35.30 	shall be an increase in the levy limits of the district for purposes of section 275.065, 
35.31 	subdivision 6. The amount of aids to be reduced to repay the state shall be decreased by 
35.32 	the amount levied. This levy by the district is not eligible for debt service equalization 
35.33 	under section 123B.53. 
35.34 	(b) If the state is not repaid in full for a payment made under this section by 
35.35 	November 30 of the calendar year following the year in which the state makes the 
35.36 	payment, the commissioner shall require the district to certify a property tax levy in an 
36.1 	amount up to the amount necessary to provide funds for repayment of the amount paid by 
36.2 	the state plus interest through the date of estimated repayment by the school district. To 
36.3 	prevent undue hardship, the commissioner may allow the district to certify the levy over a 
36.4 	five-year period. The proceeds of the levy may be used only for this purpose unless they 
36.5 	are in excess of the amount actually due, in which case the excess shall be used to repay 
36.6 	other state payments made under this section or shall be deposited in the debt redemption 
36.7 	fund of the district. This levy shall be an increase in the levy limits of the school district 
36.8 	for purposes of section 275.065, subdivision 6. If the commissioner orders the district 
36.9 	to levy, the amount of aids reduced to repay the state shall be decreased by the amount 
36.10 	levied. This levy by the district is not eligible for debt service equalization under section 
36.11 	123B.53 or any successor provision. A levy under this subdivision must be explained as a 
36.12 	specific increase at the meeting required under section 275.065, subdivision 6. 
36.13 	(c) For an intermediate school district, a levy made by a member school district 
36.14 	under paragraph (a) or (b) to repay its pro rata share must be spread by the commissioner 
36.15 	as a tax rate based on the total adjusted net tax capacity of the member school districts. The 
36.16 	proceeds of the levy must be remitted by the member school district to the intermediate 
36.17 	school district and must be used by the intermediate school district only to repay the state 
36.18 	amounts owed. Any amount in excess of the amount owed to the state must be repaid 
36.19 	to the member school districts and the commissioner shall adjust each member school 
36.20 	district's property tax levy in the next year.
36.21 		Subd. 7.Election as to mandatory application. A school district or intermediate 
36.22 	school district may covenant and obligate itself, prior to the issuance of an issue of debt 
36.23 	obligations, to notify the commissioner of a potential default and to use the provisions of 
36.24 	this section to guarantee payment of the principal and interest on those debt obligations 
36.25 	when due. If the school district or intermediate school district obligates itself to be bound 
36.26 	by this section, it must covenant in the resolution that authorizes the issuance of the debt 
36.27 	obligations to deposit with the paying agent three business days prior to the date on which 
36.28 	a payment is due an amount sufficient to make that payment or to notify the commissioner 
36.29 	under subdivision 1 that it will be unable to make all or a portion of that payment. A school
36.30 	district or intermediate school district that has obligated itself must include a provision in 
36.31 	its agreement with the paying agent for that issue that requires the paying agent to inform 
36.32 	the commissioner if it becomes aware of a potential default in the payment of principal or 
36.33 	interest on that issue or if, on the day two business days prior to the date a payment is due 
36.34 	on that issue, there are insufficient funds to make the payment on deposit with the paying 
36.35 	agent. Funds invested in a refunding escrow account established under section 475.67 that 
36.36 	are to become available to the paying agent on a principal or interest payment date are 
37.1 	deemed to be on deposit with the paying agent three business days before the payment 
37.2 	date. If a school district or intermediate school district either covenants to be bound by 
37.3 	this section or accepts state payments under this section to prevent a default of a particular 
37.4 	issue of debt obligations, the provisions of this section shall be binding as to that issue 
37.5 	as long as any debt obligation of that issue remain outstanding. If the provisions of this 
37.6 	section are or become binding for more than one issue of debt obligations and a school
37.7 	district or intermediate school district is unable to make payments on one or more of those 
37.8 	issues, the district must continue to make payments on the remaining issues. 
37.9 		Subd. 8.Mandatory plan; technical assistance. If the state makes payments 
37.10 	on behalf of a school district or intermediate school district under this section or the 
37.11 	district defaults in the payment of principal or interest on an outstanding debt obligation, it 
37.12 	must submit a plan to the commissioner for approval specifying the measures it intends 
37.13 	to implement to resolve the issues which led to its inability to make the payment and 
37.14 	to prevent further defaults. The department must provide technical assistance to the
37.15 	school district or intermediate school district in preparing its plan. If the commissioner 
37.16 	determines that a district's plan is not adequate, the commissioner shall notify the school
37.17 	district or intermediate school district that the plan has been disapproved, the reasons for 
37.18 	the disapproval, and that the state shall not make future payments under this section for 
37.19 	debt obligations issued after the date specified in that notice until its plan is approved. 
37.20 	The commissioner may also notify the school district or intermediate school district that 
37.21 	until its plan is approved, other aids due the district will be withheld after a date specified 
37.22 	in the notice.
37.23 		Subd. 9.State bond rating. If the commissioner of finance determines that the 
37.24 	credit rating of the state would be adversely affected thereby, the commissioner of finance 
37.25 	shall not issue warrants under subdivision 2 for the payment of principal or interest on any 
37.26 	debt obligations for which a district did not, prior to their issuance, obligate itself to be 
37.27 	bound by the provisions of this section.
37.28 		Subd. 10.Continuing disclosure agreements. The commissioner of finance 
37.29 	may enter into written agreements or contracts relating to the continuing disclosure of 
37.30 	information needed to facilitate the ability of school districts or intermediate school 
37.31 	districts to issue debt obligations according to federal securities laws, rules, and 
37.32 	regulations, including securities and exchange commission rules and regulations, section 
37.33 	240.15c2-12. Such agreements or contracts may be in any form the commissioner of 
37.34 	finance deems reasonable and in the state's best interests.

37.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

38.1 	Sec. 38. [127A.331] SCHOOL ENDOWMENT FUND; USE OF REVENUE.
38.2 	A school that receives school endowment fund revenue under section 127A.33 
38.3 	in excess of $36 per pupil in average daily membership may use that revenue only for 
38.4 	the following purposes:
38.5 	(1) to purchase or lease computers and related materials, copying machines, 
38.6 	telecommunications equipment, and other noninstructional equipment;
38.7 	(2) to purchase or lease assistive technology or equipment for instructional programs;
38.8 	(3) to purchase new and replacement library media resources or technology;
38.9 	(4) to pay for ongoing or recurring telecommunications/Internet access costs 
38.10 	associated with Internet access, data lines, and video links; and 
38.11 	(5) to pay for service provider installation fees for installation of new 
38.12 	telecommunications lines or increased bandwidth.

38.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010.

38.14 	Sec. 39. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:
38.15 		Subd. 16.Payments to third parties. Notwithstanding subdivision 3, the current 
38.16 	year aid payment percentage of the amounts under section 123A.26, subdivision 3 and 
38.17 	section 124D.041, shall be paid in equal installments on August 30, December 30, and 
38.18 	March 30, with a final adjustment payment on October 30 of the next fiscal year of the 
38.19 	remaining amount.

38.20 	Sec. 40. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to 
38.21 	read:
38.22 		Subd. 13. Preadvanced placement, advanced placement, international 
38.23 	baccalaureate, and concurrent enrollment programs. For preadvanced placement, 
38.24 	advanced placement, international baccalaureate, and concurrent enrollment programs 
38.25 	under Minnesota Statutes, sections 120B.132 and 124D.091: 

38.26		$ 
	6,500,000
	..... 
	2008 
	
38.27		$ 
	6,500,000
	..... 
	2009 
	
38.28 	Of this amount, $2,500,000 each year is for concurrent enrollment program aid 
38.29 	under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 
38.30 	commissioner must proportionately reduce the aid payment to each district. Any balance 
38.31 	in the first year does not cancel but is available in the second year.
38.32 	The base appropriation for fiscal year 2010 and later is $2,000,000.

38.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.1 	Sec. 41. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to 
39.2 	read:
39.3 		Subd. 2. Report. (a) The task force must submit to the education policy and finance 
39.4 	committees of the legislature by February 15, 2008 2009, a report that identifies and 
39.5 	clearly and concisely explains each provision in state law or rule that exceeds or expands 
39.6 	upon a minimum federal requirement contained in law or regulation for providing special 
39.7 	education programs and services to eligible students. The report also must recommend 
39.8 	which state provisions statutes and rules that exceed or expand upon a minimum federal 
39.9 	requirement may be amended to conform with minimum federal requirements or made 
39.10 	more effective as determined by a majority of the task force members. The task force must 
39.11 	recommend rules governing the use of aversive and deprivation procedures by school 
39.12 	district employees or persons under contract with a school district. The task force expires 
39.13 	when it submits its report to the legislature. 
39.14 	(b) Consistent with subdivision 1, the Department of Education member of the 
39.15 	task force representing regulators shall be replaced with a parent advocate selected by a 
39.16 	statewide organization that advocates on behalf of families with children with disabilities.
39.17 	(c) The Department of Education must provide technical assistance at the request of 
39.18 	the task force.

39.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.20 	Sec. 42. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to 
39.21 	read:
39.22 		Subd. 9. Special Education Task Force. For the task force to compare federal 
39.23 	and state special education requirements: 

39.24		$ 
	20,000 40,000
	..... 
	2008 
	
39.25 	Any balance in the first year does not cancel but is available in the second year.
39.26 	This is a onetime appropriation.

39.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.28 	Sec. 43. Laws 2007, chapter 146, article 5, section 13, subdivision 5, is amended to 
39.29 	read:
39.30 		Subd. 5. Plainview-Elgin-Millville fund balance replacement aid.
 39.31 	For fund balance replacement aid for Independent School District No. 2899, 
39.32 	Plainview-Elgin-Millville: 

39.33		$ 
	17,000 24,000
	..... 
	2008 
	
40.1 	This is a onetime appropriation.

40.2 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.3 	Sec. 44. Laws 2007, chapter 146, article 7, section 4, is amended to read:
40.4 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 40.5 		Subdivision 1. Department of Education. Unless otherwise indicated, the sums 
40.6 	indicated in this section are appropriated from the general fund to the Department of 
40.7 	Education for the fiscal years designated. 
40.8 		Subd. 2. Department. (a) For the Department of Education: 

40.9		$ 
	22,169,000
	..... 
	2008 
	
40.10
40.11		$ 
	22,653,000
 21,791,000
	..... 
	2009 
	
40.12 	Any balance in the first year does not cancel but is available in the second year. 
40.13 	(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking. 
40.14 	(c) $7,000 in fiscal year 2008 is for rulemaking under section 3. 
40.15 	(d) $40,000 each year is for an early hearing loss intervention coordinator under 
40.16 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
40.17 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, 
40.18 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
40.19 	employing a world languages coordinator. 
40.20 	(e) $260,000 each year is for the Minnesota Children's Museum. 
40.21 	(f) $41,000 each year is for the Minnesota Academy of Science. 
40.22 	(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 
40.23 	of Teaching. 
40.24 	(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 
40.25 	of School Administrators. 
40.26 	(i) $50,000 each year is for the Duluth Children's Museum. 
40.27 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
40.28 	document and its supplements are approved and appropriated and shall be spent as 
40.29 	indicated. 
40.30 	(k) None of the amounts appropriated under this subdivision may be used for 
40.31 	Minnesota's Washington, D.C., office.
40.32 	(1) $30,000 in fiscal year 2009 is for determining how the educational achievement 
40.33 	of low-income students and students of color is impacted by education issues related 
40.34 	to rigorous preparation and coursework, educators' professional development, English 
40.35 	language learners, special education, GRAD tests, and the use of valid and reliable data on 
41.1 	student preparation for postsecondary academic and career opportunities under sections 57 
41.2 	and 58. This amount is not added to the base appropriation for fiscal year 2010 and later.

41.3 	Sec. 45. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
41.4 	1, is amended to read:

41.5	Subdivision 1. Total Appropriation
 			$ 
	584,000 268,000
	
41.6 	The appropriations in this section are from 
41.7 	the general fund. The amounts that may be 
41.8 	spent for each purpose are specified in the 
41.9 	following subdivisions. 

41.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

41.11 	Sec. 46. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
41.12 	2, is amended to read:

41.13
41.14	Subd. 2. Independent School District No. 239, 
Rushford-Peterson

41.15	(a) Flood Enrollment Impact Aid
 				89,000 
	
41.16 	The commissioner of education shall pay to 
41.17 	the school district flood enrollment impact 
41.18 	aid equal to $5,394 times the number of 
41.19 	pupils lost as a result of the floods of August 
41.20 	2007. The district must provide to the 
41.21 	commissioner of education documentation 
41.22 	of the number of pupils in average daily 
41.23 	membership lost as a result of the flood. 

41.24	(b) Disaster Relief Facilities Grant
 				250,000120,000
	
41.25 	For facilities cleanup, repair, and replacement 
41.26 	costs related to the floods of August 2007 not 
41.27 	covered by the district's insurance settlement 
41.28 	or through Federal Emergency Management 
41.29 	Agency payments. The commissioner of 
41.30 	education may request the school district 
41.31 	to provide necessary information before 
41.32 	awarding a grant. 

42.1	(c) Pupil Transportation Aid
 				40,000 
	
42.2 	For increased costs associated with 
42.3 	transporting students as a result of the floods 
42.4 	of August 2007. 

42.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.6 	Sec. 47. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
42.7 	6, is amended to read:

42.8
42.9	Subd. 6. Disaster Relief Facilities Grants to 
Other Districts
 				90,00014,000
	
42.10 	For facilities cleanup, repair, and replacement 
42.11 	costs related to the floods of August 2007 not 
42.12 	covered by the district's insurance settlement 
42.13 	or through Federal Emergency Management 
42.14 	Agency payments. The commissioner of 
42.15 	education may request the school district 
42.16 	to provide necessary information before 
42.17 	awarding a grant. School districts not 
42.18 	included in subdivisions 2 to 5 must be given 
42.19 	priority in the allocation of this appropriation.

42.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.21 	Sec. 48. FUND TRANSFERS.
 42.22 		Subdivision 1.Capital account transfers. Notwithstanding any law to the contrary, 
42.23 	on June 30, 2008, a school district may transfer money from its reserved for operating 
42.24 	capital account to its undesignated balance in the general fund. The amount transferred 
42.25 	by any school district must not exceed $51 times the district's adjusted marginal cost 
42.26 	pupil units for fiscal year 2007. This transfer may occur only after the school board has 
42.27 	adopted a written resolution stating the amount of the transfer and declaring that the 
42.28 	school district's operating capital needs are being met.
42.29 		Subd. 2.Reserved for operating capital account transfer; Balaton school 
42.30 	district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision 
42.31 	1, on June 30, 2008, Independent School District No. 411, Balaton, may transfer up to 
43.1 	$70,000 from its reserved for operating capital account to its undesignated general fund 
43.2 	balance.
43.3 		Subd. 3.Reserved for operating capital account transfer; East Central school 
43.4 	district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision 
43.5 	1, on June 30, 2008, Independent School District No. 2580, East Central, may transfer up 
43.6 	to $300,000 from its reserved for operating capital account to its undesignated general 
43.7 	fund balance.

43.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.9 	Sec. 49. ONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL 
43.10 	YEAR 2009 ONLY.
 43.11 	A school district's general education revenue under Minnesota Statutes, section 
43.12 	126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the 
43.13 	district's adjusted marginal cost pupil units for that year.

43.14 	Sec. 50. ALTERNATIVE TEACHER COMPENSATION AID.
 43.15 	A school district that has not applied for alternative teacher compensation aid under 
43.16 	Minnesota Statutes, section 126C.10, subdivision 34, by March 20, 2008, is not eligible 
43.17 	for aid under that subdivision for fiscal year 2009. Nothing in this section limits a district's 
43.18 	eligibility for alternative teacher compensation aid in subsequent fiscal years.

43.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.20 	Sec. 51. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED 
43.21 	SYSTEM.
 43.22 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
43.23 	subdivision 3, paragraph (b), and to help parents and members of the public compare the 
43.24 	reported data, the commissioner must convene a group of expert school district assessment 
43.25 	and evaluation staff, including a recognized Minnesota assessment group composed 
43.26 	of assessment and evaluation directors and staff and researchers under Minnesota 
43.27 	Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school 
43.28 	superintendents, school principals, school teachers, and parents to examine the actual 
43.29 	statewide performance of students using Minnesota's growth-based value-added system 
43.30 	and establish criteria for identifying schools and school districts that demonstrate 
43.31 	accelerated growth in order to advance educators' professional development and replicate 
43.32 	programs that succeed in meeting students' diverse learning needs.
44.1 	(b) The commissioner must submit a written report to the education committees of 
44.2 	the house of representatives and senate by February 15, 2009, describing the criteria for 
44.3 	identifying schools and school districts that demonstrate accelerated growth. The group 
44.4 	convened under this section expires on June 30, 2009.

44.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
44.6 	and applies to school report cards in the 2008-2009 school year and later.

44.7 	Sec. 52. IMPLEMENTING RIGOROUS COURSEWORK MEASURES 
44.8 	RELATED TO STUDENT PERFORMANCE.
 44.9 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
44.10 	subdivision 3, paragraph (c), clauses (1) and (2), and to help parents and members of the 
44.11 	public compare the reported data, the commissioner of education must convene a group of 
44.12 	recognized and qualified experts and interested stakeholders, including parents among 
44.13 	other stakeholders, to develop a model projecting anticipated performance of each high 
44.14 	school on preparation and rigorous coursework measures that compares the school with 
44.15 	similar schools. The model must use information about entering high school students 
44.16 	based on particular background characteristics that are predictive of differing rates of 
44.17 	college readiness. These characteristics include grade 8 achievement levels, high school 
44.18 	student mobility, high school student attendance, and the size of each entering ninth grade 
44.19 	class. The group of experts and stakeholders may examine other characteristics not part 
44.20 	of the prediction model including the nine student categories identified under the federal 
44.21 	2001 No Child Left Behind Act, and two student gender categories of male and female, 
44.22 	respectively. The commissioner annually must use the predicted level of entering students' 
44.23 	performance to provide a context for interpreting graduating students' actual performance. 
44.24 	The group convened under this section expires June 30, 2011.
44.25 	(b) Consistent with paragraph (a), the commissioner also must propose an expanded 
44.26 	high school student data system to report preparation and rigorous coursework measures 
44.27 	and facilitate additional research on college readiness. This proposed data system must 
44.28 	expect school districts and charter schools to report data to the state education department 
44.29 	on each course a high school student takes and completes. The commissioner must link 
44.30 	the course data file to the department's existing student reporting system. The proposed 
44.31 	data system must enable the commissioner to prepare detailed reports, consistent with the 
44.32 	requirements in Minnesota Statutes, section 120B.35, subdivision 3, paragraph (d), clauses 
44.33 	(1) and (2), and support the development of a state P-16 longitudinal data system.

45.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
45.2 	and applies to school report cards beginning July 1, 2011.

45.3 	Sec. 53. IMPLEMENTING MEASURES FOR ASSESSING STUDENTS' 
45.4 	SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN 
45.5 	SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS, 
45.6 	ADMINISTRATORS, AND OTHER STUDENTS.
 45.7 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
45.8 	subdivision 3, paragraph (d), and to help parents and members of the public compare the 
45.9 	reported data, the commissioner of education, in consultation with interested stakeholders, 
45.10 	including parents among other stakeholders, must convene a group of recognized and 
45.11 	qualified experts to:
45.12 	(1) analyze the University of Minnesota student safety and engagement survey 
45.13 	instrument and other commonly recognized survey instruments to select the survey 
45.14 	instrument that best meets state accountability requirements;
45.15 	(2) ensure that the selected survey instrument has sound psychometric properties and 
45.16 	is useful for intervention planning;
45.17 	(3) determine at what grade levels to administer the survey instrument and ensure 
45.18 	that the survey instrument can be used at those grade levels; and
45.19 	(4) determine through disaggregated use of survey indicators or other means how to 
45.20 	report "safety" in order to comply with federal law.
45.21 	(b) The commissioner must submit a written report to the education committees of 
45.22 	the house of representatives and senate by February 15, 2009, presenting the experts' 
45.23 	responses to paragraph (a), clauses (1) to (4). The group convened under this section 
45.24 	expires June 30, 2009.

45.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
45.26 	and applies to school report cards beginning July 1, 2011.

45.27 	Sec. 54. GROWTH-BASED VALUE-ADDED SYSTEM.
 45.28 	The growth-based value-added system used by the commissioner of education to 
45.29 	comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must 
45.30 	be consistent with the growth-based value-added model contained in the document 
45.31 	labeled "Educational Report Card Growth Model" developed in partnership with the 
45.32 	Minnesota Department of Education. The document must be deposited with the 
45.33 	Office of the Revisor of Statutes, the Legislative Reference Library, and the State Law 
45.34 	Library, where the document shall be maintained until the commissioner implements the 
46.1 	growth-based value-added system under Minnesota Statutes, section 120B.35, subdivision 
46.2 	3, paragraph (b). The recognized Minnesota assessment group composed of assessment 
46.3 	and evaluation directors and staff and researchers under Minnesota Statutes, section 
46.4 	120B.299, subdivision 6, must determine whether the growth-based value-added model 
46.5 	the commissioner uses to comply with Minnesota Statutes, section 120B.35, subdivision 
46.6 	3, paragraph (b), is consistent with the deposited document and report its determination to 
46.7 	the education committees of the house of representatives and senate by February 15, 2009.

46.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.9 	Sec. 55. EXPEDITED PROCESS; SPECIFIC LEARNING DISABILITIES 
46.10 	RULE.
 46.11 	The commissioner of education may use the expedited process under Minnesota 
46.12 	Statutes, section 14.389, to conform Minnesota Rules, part 3525.1341, to new federal 
46.13 	requirements on specific learning disabilities under Public Law 108-446, sections 602(30) 
46.14 	and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004, 
46.15 	and its implementing regulations.

46.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.17 	Sec. 56. ENDING PARTICIPATION IN NO CHILD LEFT BEHIND.
 46.18 	The commissioner of education must nullify and revoke by August 1, 2009, the 
46.19 	consolidated state plan that the state of Minnesota submitted to the federal Department 
46.20 	of Education on implementing the No Child Left Behind Act of 2001, and any other 
46.21 	Minnesota state contract or agreement entered into under the provisions of the No Child 
46.22 	Left Behind Act of 2001.

46.23 	Sec. 57. SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC 
46.24 	ACHIEVEMENT.
 46.25 		Subdivision 1.District academic achievement plan; priorities. (a) A school 
46.26 	district experiencing disparities in academic achievement is encouraged to develop a 
46.27 	short and long-term plan encompassing one through four years to significantly improve 
46.28 	students' academic achievement that uses concrete measures to eliminate differences in 
46.29 	academic performance among groups of students defined by race, ethnicity, and income. 
46.30 	The plan must:
46.31 	(1) reflect a research-based understanding of high-performing educational systems 
46.32 	and best educational practices;
47.1 	(2) include innovative and practical strategies and programs, whether existing or 
47.2 	new, that supplement district initiatives to increase students' academic achievement under 
47.3 	state and federal educational accountability requirements; and
47.4 	(3) contain valid and reliable measures of student achievement that the district uses 
47.5 	to demonstrate the efficacy of the district plan to the commissioner of education.
47.6 	(b) A district must address the elements under section 58, paragraph (a), to the 
47.7 	extent those elements are implicated in the district's plan.
47.8 	(c) A district must identify in its plan the strategies and programs the district has 
47.9 	implemented and found effective in improving students' academic achievement.
47.10 	(d) The district must include with the plan the amount of expenditures necessary 
47.11 	to implement the plan. The district must indicate how current resources are used to 
47.12 	implement the plan, including, but not limited to, state-limited English proficiency aid 
47.13 	under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes, 
47.14 	section 124D.86; early childhood family education revenue under Minnesota Statutes, 
47.15 	section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic 
47.16 	skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time 
47.17 	revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative 
47.18 	compensation revenue under Minnesota Statutes, section 122A.415.
47.19 		Subd. 2.Plan. (a) A school district by October 1, 2008, must submit its plan in 
47.20 	electronic format to the commissioner of education, consistent with subdivision 1.
47.21 	(b) The commissioner of education must analyze the commonalities and differences 
47.22 	of the district plans and the effective strategies and programs districts have implemented 
47.23 	to improve students' academic achievement, and submit the analysis and underlying data 
47.24 	to the advisory task force on improving students' academic achievement under section 
47.25 	58 by November 1, 2008, and also report the substance of the analyses to the education 
47.26 	policy and finance committees of the legislature by January 1, 2009.

47.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

47.28 	Sec. 58. ADVISORY TASK FORCE ON IMPROVING STUDENTS' 
47.29 	ACADEMIC ACHIEVEMENT.
 47.30 	(a) An advisory task force on improving students' academic achievement is 
47.31 	established to review the plans submitted to the commissioner of education under section 
47.32 	57 and recommend to the education committees of the legislature a proposal for improving 
47.33 	students' academic achievement and eliminating differences in academic performance 
47.34 	among groups of students defined by race, ethnicity, and income. The task force members 
48.1 	must at least consider how the following education-related issues impact the educational 
48.2 	achievement of low-income students and students of color:
48.3 	(1) rigorous preparation and coursework and how to (i) effectively invest in early 
48.4 	childhood and parent education, (ii) increase academic rigor and high expectations on 
48.5 	elementary and secondary students in schools serving a majority of low-income students 
48.6 	and students of color, and (iii) provide parents, educators, and community members with 
48.7 	meaningful opportunities to collaborate in educating students in schools serving a majority 
48.8 	of low-income students and students of color;
48.9 	(2) professional development for educators and how to (i) provide stronger financial 
48.10 	and professional incentives to attract and retain experienced, bilingual, and culturally 
48.11 	competent teachers and administrators in schools serving a majority of low-income 
48.12 	students and students of color, (ii) recruit and retain teachers of color, and (iii) develop and 
48.13 	include cultural sensitivity and interpersonal and pedagogical skills training that teachers 
48.14 	need for effective intercultural teaching;
48.15 	(3) English language learners and how to (i) use well-designed tests, curricula, 
48.16 	and English as a second language programs and services as diagnostic tools to develop 
48.17 	effective student interventions, (ii) monitor students' language capabilities, (iii) provide 
48.18 	academic instruction in English that supports students' learning and is appropriate 
48.19 	for students' level of language proficiency, and (iv) incorporate the perspectives and 
48.20 	contributions of ethnic and racial groups, consistent with Minnesota Statutes, section 
48.21 	120B.022, subdivision 1, paragraph (b);
48.22 	(4) special education and how to (i) incorporate linguistic and cultural sensitivity 
48.23 	into special education diagnosis and referral, (ii) increase the frequency and quality of 
48.24 	prereferral interventions, and (iii) decrease the number of minority and nonnative English 
48.25 	speaking students inappropriately placed in special education;
48.26 	(5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the 
48.27 	reading and math GRAD tests, and (ii) develop interventions to meet students' learning 
48.28 	needs; and
48.29 	(6) valid and reliable data and how to use data on student on-time graduation rates, 
48.30 	student dropout rates, documented disciplinary actions, and completed and rigorous course 
48.31 	work indicators to determine how well-prepared, low-income students and students of 
48.32 	color are for postsecondary academic and career opportunities.
48.33 	The task force also must examine the findings of a 2008 report by Minnesota 
48.34 	superintendents on strategies for creating a world-class educational system to establish 
48.35 	priorities for improving students' academic achievement. The task force may consider 
48.36 	other related matters at its discretion.
49.1 	(b) The commissioner of education must convene the first meeting of the advisory 
49.2 	task force on improving students' academic achievement by July 1, 2008. The task force 
49.3 	members must adopt internal procedures and standards for subsequent meetings. The task 
49.4 	force is composed of the following members:
49.5 	(1) a representative from a Twin Cities metropolitan area school district, a suburban 
49.6 	school district, a school district located in a regional center, and a rural school district, all 
49.7 	four representatives appointed by the state demographer based on identified concentrations 
49.8 	of low-performing, low-income students and students of color;
49.9 	(2) a faculty member of a teacher preparation program at the University of 
49.10 	Minnesota's College of Education and Human Development, appointed by the college 
49.11 	dean or the dean's designee;
49.12 	(3) a faculty member from the urban teachers program at Metropolitan State 
49.13 	University appointed by the university president or the president's designee;
49.14 	(4) a faculty member from a Minnesota State Colleges and Universities teacher 
49.15 	preparation program located outside the Twin Cities metropolitan area, appointed by 
49.16 	the chancellor or the chancellor's designee;
49.17 	(5) a classroom teacher appointed by Education Minnesota;
49.18 	(6) an expert in early childhood care and education appointed by a state early 
49.19 	childhood organization;
49.20 	(7) a member from each state council representing a community of color, appointed 
49.21 	by the respective council;
49.22 	(8) a curriculum specialist with expertise in providing language instruction for 
49.23 	nonnative English speakers, appointed by a state curriculum organization;
49.24 	(9) a special education teacher, appointed by a state organization of special education 
49.25 	educators;
49.26 	(10) a parent of color, appointed by a state parent-teacher organization;
49.27 	(11) a district testing director appointed by a recognized Minnesota assessment 
49.28 	group composed of assessment and evaluation directors and staff and researchers; and
49.29 	(12) a Department of Education staff person with expertise in school desegregation 
49.30 	matters appointed by the commissioner of education or the commissioner's designee.
49.31 	A majority of task force members, at their discretion, may invite other representatives 
49.32 	of interested public or nonpublic organizations, Minnesota's communities of color, and 
49.33 	stakeholders in local and state educational equity to become task force members. A 
49.34 	majority of task force members must be persons of color.
49.35 	(c) Members of the task force serve without compensation. By February 15, 
49.36 	2009, the task force must submit a written proposal to the education policy and finance 
50.1 	committees of the legislature on how to significantly improve students' academic 
50.2 	achievement.
50.3 	(d) The advisory task force expires on February 16, 2009.

50.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

50.5 	Sec. 59. APPROPRIATIONS.
 50.6 		Subdivision 1.Department of Education. The sums indicated in this section are 
50.7 	appropriated from the general fund, unless otherwise indicated, to the Department of 
50.8 	Education for the fiscal years designated.
50.9 		Subd. 2.Additional general education revenue. For additional general education 
50.10 	aid according to section 49:

50.11		$
	23,262,000
	.....
	2009
	
50.12 	This appropriation is in addition to any other appropriation for this purpose.
50.13 	This 2009 appropriation includes $0 for 2008 and $18,926,000 for 2009.
50.14 		Subd. 3.Rushford-Peterson. For a grant to Independent School District No. 
50.15 	239, Rushford-Peterson, for school district flood enrollment impact aid and aid for the 
50.16 	increased costs of transporting students as a result of the floods of August 2007.

50.17		$
	158,000
	.....
	2009
	
50.18 	The base appropriation for fiscal year 2010 is $158,000. The base appropriation for 
50.19 	later years is zero.
50.20 		Subd. 4.Virginia. For a grant to Independent School District No. 701, Virginia, for 
50.21 	emergency school facility repairs:

50.22		$
	100,000
	.....
	2009
	
50.23 	This is a onetime appropriation.
50.24 		Subd. 5.Lancaster. For a grant to Independent School District No. 356, Lancaster, 
50.25 	to replace the loss of sparsity revenue:

50.26		$
	100,000
	.....
	2009
	
50.27 	The base appropriation for fiscal years 2010 and 2011 is $100,000 per year. The 
50.28 	base appropriation for later fiscal years is zero.
50.29 		Subd. 6.Principal's Leadership Institute. For a grant to the Principal's Leadership 
50.30 	Institute under Minnesota Statutes, section 122A.74:

51.1		$
	400,000
	.....
	2009
	
51.2 	The base appropriation for this program for fiscal year 2010 and later is $400,000.
51.3 		Subd. 7.Board of Teaching; licensure by portfolio. For the Board of Teaching 
51.4 	for licensure by portfolio:

51.5		$
	17,000
	.....
	2009
	
51.6 	This appropriation is from the educator licensure portfolio account of the special 
51.7 	revenue fund.

51.8 	Sec. 60.  REPEALER.
 51.9 	(a) Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19; 125A.20; and 
51.10 	125A.57, are repealed.
51.11 	(b) Laws 2006, chapter 263, article 3, section 16; and Laws 2007, First Special 
51.12 	Session chapter 2, article 1, section 11, subdivisions 3, and 4, are repealed.

51.13 	ARTICLE 2
51.14 	FORECAST ADJUSTMENTS

51.15 	Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to 
51.16 	read:
51.17 		Subd. 2. General education aid. For general education aid under Minnesota 
51.18 	Statutes, section 126C.13, subdivision 4:

51.19
51.20		$ 
	5,618,342,000
5,600,647,000
	..... 
	2008 
	
51.21
51.22		$ 
	5,618,342,000
5,649,098,000
	..... 
	2009 
	
51.23 	The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and 
51.24 	$5,073,250,000 $5,064,396,000 for 2008.
51.25 	The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and 
51.26 	$5,072,028,000$5,105,346,000 for 2009.

51.27 	Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to read:
51.28 		Subd. 3. Referendum tax base replacement aid. For referendum tax base 
51.29 	replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

51.30		$ 
	870,000861,000
	..... 
	2008 
	
51.31 	The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.

52.1 	Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:
52.2 		Subd. 4. Enrollment options transportation. For transportation of pupils attending 
52.3 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
52.4 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

52.5		$ 
	95,00048,000
	..... 
	2008 
	
52.6		$ 
	97,00050,000
	..... 
	2009 

52.7 	Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:
52.8 		Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section 
52.9 	127A.49:

52.10
52.11		$ 
	1,343,000
1,333,000
	..... 
	2008 
	
52.12
52.13		$ 
	1,347,000
1,629,000
	..... 
	2009 
	
52.14 	The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,000
52.15 	for 2008.
52.16 	The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,000
52.17 	$1,490,000 for 2009.

52.18 	Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:
52.19 		Subd. 6. Consolidation transition. For districts consolidating under Minnesota 
52.20 	Statutes, section 123A.485:

52.21		$ 
	565,000240,000
	..... 
	2008 
	
52.22		$ 
	212,000339,000
	..... 
	2009 
	
52.23 	The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.
52.24 	The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,000
52.25 	for 2009.

52.26 	Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:
52.27 		Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under 
52.28 	Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

52.29
52.30		$ 
	16,290,000
15,601,000
	..... 
	2008 
	
52.31
52.32		$ 
	16,620,000
16,608,000
	..... 
	2009 
	
52.33 	The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,000
52.34 	$14,387,000 for 2008.
53.1 	The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,000
53.2 	$15,010,000 for 2009.

53.3 	Sec. 7. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:
53.4 		Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid 
53.5 	under Minnesota Statutes, section 123B.92, subdivision 9:

53.6
53.7		$ 
	21,551,000
20,755,000
	..... 
	2008 
	
53.8
53.9		$ 
	21,392,000
21,007,000
	..... 
	2009 
	
53.10 	The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,000
53.11 	for 2008.
53.12 	The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,000
53.13 	$18,937,000 for 2009.
53.14 	B. EDUCATION EXCELLENCE

53.15 	Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:
53.16 		Subd. 2. Charter school building lease aid. For building lease aid under Minnesota 
53.17 	Statutes, section 124D.11, subdivision 4: 

53.18
53.19		$ 
	31,875,000
32,817,000
	..... 
	2008 
	
53.20
53.21		$ 
	36,193,000
37,527,000
	..... 
	2009 
	
53.22 	The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,000
53.23 	for 2008. 
53.24 	The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,000
53.25 	$34,194,000 for 2009. 

53.26 	Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:
53.27 		Subd. 3. Charter school startup cost aid. For charter school startup cost aid 
53.28 	under Minnesota Statutes, section 124D.11: 

53.29
53.30		$ 
	1,896,000
1,801,000
	..... 
	2008 
	
53.31
53.32		$ 
	2,161,000
1,987,000
	..... 
	2009 
	
53.33 	The 2008 appropriation includes $241,000$239,000 for 2007 and $1,655,000
53.34 	$1,562,000 for 2008. 
54.1 	The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,000
54.2 	$1,814,000 for 2009. 

54.3 	Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to 
54.4 	read:
54.5 		Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section 
54.6 	124D.86, subdivision 5: 

54.7
54.8		$ 
	61,769,000
59,036,000
	..... 
	2008 
	
54.954.10
		$ 
	61,000,000
62,448,000
	..... 
	2009 
	
54.11 	The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,000
54.12 	for 2008. 
54.13 	The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,000
54.14 	$56,536,000 for 2009. 

54.15 	Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to 
54.16 	read:
54.17 		Subd. 6. Interdistrict desegregation or integration transportation grants. For 
54.18 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
54.19 	section 124D.87: 

54.20
54.21		$ 
	9,639,000
9,901,000
	..... 
	2008 
	
54.22
54.23		$ 
	11,567,000
11,881,000
	..... 
	2009 

54.24 	Sec. 12. Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to 
54.25 	read:
54.26 		Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota 
54.27 	Statutes, section 124D.83: 

54.28
54.29		$ 
	2,238,000
2,207,000
	..... 
	2008 
	
54.30
54.31		$ 
	2,422,000
2,392,000
	..... 
	2009 
	
54.32 	The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,000
54.33 	for 2008. 
54.34 	The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,000
54.35 	$2,170,000 for 2009. 
55.1 	C. SPECIAL PROGRAMS

55.2 	Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to 
55.3 	read:
55.4 		Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, 
55.5 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
55.6 	within the district boundaries for whom no district of residence can be determined: 

55.7
55.8		$ 
	1,538,000
2,086,000
	..... 
	2008 
	
55.955.10
		$ 
	1,729,000
2,282,000
	..... 
	2009 
	
55.11 	If the appropriation for either year is insufficient, the appropriation for the other 
55.12 	year is available. 

55.13 	Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to 
55.14 	read:
55.15 		Subd. 4. Travel for home-based services. For aid for teacher travel for home-based 
55.16 	services under Minnesota Statutes, section 125A.75, subdivision 1: 

55.17		$ 
	254,000207,000
	..... 
	2008 
	
55.18		$ 
	284,000227,000
	..... 
	2009 
	
55.19 	The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008. 
55.20 	The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,000
55.21 	for 2009. 
55.22 	D. FACILITIES AND TECHNOLOGY

55.23 	Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to 
55.24 	read:
55.25 		Subd. 2. Health and safety revenue. For health and safety aid according to 
55.26 	Minnesota Statutes, section 123B.57, subdivision 5: 

55.27		$ 
	190,000254,000
	..... 
	2008 
	
55.28		$ 
	179,000103,000
	..... 
	2009 
	
55.29 	The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008. 
55.30 	The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,000
55.31 	for 2009. 

56.1 	Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to 
56.2 	read:
56.3 		Subd. 3. Debt service equalization. For debt service aid according to Minnesota 
56.4 	Statutes, section 123B.53, subdivision 6: 

56.5
56.6		$ 
	14,813,000
14,814,000
	..... 
	2008 
	
56.7
56.8		$ 
	11,124,000
9,109,000
	..... 
	2009 
	
56.9 	The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,000
56.10 	$13,048,000 for 2008. 
56.11 	The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,000
56.12 	$7,660,000 for 2009. 

56.13 	Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to 
56.14 	read:
56.15 		Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to 
56.16 	Minnesota Statutes, section 123B.591, subdivision 4: 

56.17
56.18		$ 
	3,290,000
3,232,000
	..... 
	2008 
	
56.19
56.20		$ 
	2,667,000
2,627,000
	..... 
	2009 
	
56.21 	The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008. 
56.22 	The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,000
56.23 	$2,268,000 for 2009. 

56.24 	Sec. 18. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to 
56.25 	read:
56.26 		Subd. 8. School technology and operating capital aid grants. For school 
56.27 	technology and operating capital grants under section 11: 

56.28
56.29		$ 
	38,145,000
38,236,000
	..... 
	2008 
	
56.30
56.31		$ 
	52,676,000
52,454,000
	..... 
	2009 
	
56.32 	This is a onetime appropriation. 
56.33 	E. NUTRITION AND ACCOUNTING

56.34 	Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to 
56.35 	read:
57.1 		Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, 
57.2 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17: 

57.3
57.4		$ 
	12,022,000
12,094,000
	..... 
	2008 
	
57.5
57.6		$ 
	12,166,000
12,394,000
	..... 
	2009 

57.7 	Sec. 20. Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to 
57.8 	read:
57.9 		Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school 
57.10 	breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 
57.11 	124D.118: 

57.12
57.13		$ 
	5,460,000
5,583,000
	..... 
	2008 
	
57.14
57.15		$ 
	5,695,000
5,994,000
	..... 
	2009 

57.16 	Sec. 21. Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to 
57.17 	read:
57.18 		Subd. 4. Summer food service replacement aid. For summer food service 
57.19 	replacement aid under Minnesota Statutes, section 124D.119: 

57.20		$ 
	150,000127,000
	..... 
	2008 
	
57.21		$ 
	150,000
	..... 
	2009 
	
57.22 	F. EARLY CHILDHOOD AND ADULT PROGRAMS

57.23 	Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to 
57.24 	read:
57.25 		Subd. 2. Early childhood family education aid. For early childhood family 
57.26 	education aid under Minnesota Statutes, section 124D.135: 

57.27
57.28		$ 
	21,106,000
21,092,000
	..... 
	2008 
	
57.29
57.30		$ 
	29,601,000
29,324,000
	..... 
	2009 
	
57.31 	The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,000
57.32 	for 2008. 
57.33 	The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,000
57.34 	$27,180,000 for 2009. 

58.1 	Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to 
58.2 	read:
58.3 		Subd. 3. School readiness. For revenue for school readiness programs under 
58.4 	Minnesota Statutes, sections 124D.15 and 124D.16: 

58.5
58.6		$ 
	9,995,000
9,987,000
	..... 
	2008 
	
58.7		$ 
	10,095,000
	..... 
	2009 
	
58.8 	The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for 
58.9 	2008. 
58.10 	The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009. 

58.11 	Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to 
58.12 	read:
58.13 		Subd. 4. Health and developmental screening aid. For health and developmental 
58.14 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19: 

58.15
58.16		$ 
	3,159,000
2,624,000
	..... 
	2008 
	
58.17
58.18		$ 
	3,330,000
2,656,000
	..... 
	2009 
	
58.19 	The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,000
58.20 	for 2008. 
58.21 	The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,000
58.22 	$2,397,000 for 2009. 

58.23 	Sec. 25. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to 
58.24 	read:
58.25 		Subd. 8. Community education aid. For community education aid under 
58.26 	Minnesota Statutes, section 124D.20: 

58.27
58.28		$ 
	1,307,000
1,299,000
	..... 
	2008 
	
58.29		$ 
	816,000796,000
	..... 
	2009 
	
58.30 	The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,000
58.31 	for 2008. 
58.32 	The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,000
58.33 	$674,000 for 2009. 

59.1 	Sec. 26. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to 
59.2 	read:
59.3 		Subd. 9. Adults with disabilities program aid. For adults with disabilities 
59.4 	programs under Minnesota Statutes, section 124D.56: 

59.5		$ 
	710,000709,000
	..... 
	2008 
	
59.6		$ 
	710,000
	..... 
	2009 
	
59.7 	The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008. 
59.8 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009. 
59.9 	School districts operating existing adults with disabilities programs that are not fully 
59.10 	funded shall receive full funding for the program beginning in fiscal year 2008 before the 
59.11 	commissioner awards grants to other districts. 

59.12 	Sec. 27. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to 
59.13 	read:
59.14 		Subd. 13. Adult basic education aid. For adult basic education aid under 
59.15 	Minnesota Statutes, section 124D.531: 

59.16
59.17		$ 
	40,347,000
40,344,000
	..... 
	2008 
	
59.18
59.19		$ 
	41,745,000
41,712,000
	..... 
	2009 
	
59.20 	The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,000
59.21 	for 2008. 
59.22 	The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,000
59.23 	for 2009.

59.24 	ARTICLE 3
59.25 	HIGHER EDUCATION

59.26	Section 1.  SUMMARY OF APPROPRIATIONS
 	
59.27 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
59.28 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 144, article 1, to 
59.29 	the agencies and for the purposes specified in this article. The appropriations are from the 
59.30 	general fund, or another named fund, and are available for the fiscal years indicated for 
59.31 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
59.32 	to or subtraction from the appropriation listed under them is available for the fiscal year 
59.33 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
60.1 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
60.2 	day following final enactment.
60.3 	The amounts shown in this section summarize direct appropriations, by fund, made 
60.4 	in this article.

60.5			2008
		2009
		Total
	
60.6	General 
	$
	0
	$
	(19,456,000)
	$
	(19,456,000)
	
60.7	Total
	$
	0
	$
	(19,456,000)
	$
	(19,456,000)

60.8				APPROPRIATIONS
	
60.9				Available for the Year
	
60.10				Ending June 30
	
60.11					2008
		2009

60.12
60.13	Sec. 2. MINNESOTA OFFICE OF HIGHER 
EDUCATION
 	$
	-0-
	$
	(7,111,000)
	
60.14 	$111,000 in the second year is an operating 
60.15 	base reduction.
60.16 	$7,000,000 in the second year is a reduction 
60.17 	to the Achieve scholarship program under 
60.18 	Minnesota Statutes, section 136A.127.

60.19
60.20
60.21	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES
 	$
	-0-
	$
	(6,173,000)
	
60.22 	Of this reduction, $5,000,000 is from the 
60.23 	appropriations for technology. The remainder 
60.24 	is from the Office of the Chancellor budget.
60.25 	The reductions in this subdivision must not 
60.26 	result in reductions to any of the campuses 
60.27 	of the Minnesota State Colleges and 
60.28 	Universities, must not reduce the technology 
60.29 	expenditures or grants to the campuses, and 
60.30 	must not increase any assessments to the 
60.31 	campuses from the Office of the Chancellor.
60.32 	The Board of Trustees of the Minnesota State 
60.33 	Colleges and Universities must reallocate 
60.34 	$9,000,000 of state appropriations for fiscal 
60.35 	year 2009 to reduce student tuition increases 
61.1 	to two percent at state colleges and three 
61.2 	percent at state universities and must not 
61.3 	increase student fees beyond the amount that 
61.4 	is currently planned for the next academic 
61.5 	year.
61.6 	The legislature intends that by reducing 
61.7 	tuition increases, the student's share of 
61.8 	educational costs are decreased and the 
61.9 	state's share of educational costs are 
61.10 	increased, consistent with the funding policy 
61.11 	in Minnesota Statutes, section 135A.01. The 
61.12 	legislature's goal is to begin progress over the 
61.13 	next eight years to achieve a two-thirds state 
61.14 	share of educational costs and a one-third 
61.15 	student share as specified in Minnesota 
61.16 	Statutes, section 135A.01.
61.17 	The system base is reduced by $8,664,000 
61.18 	in fiscal year 2010 and $8,665,000 in fiscal 
61.19 	year 2011.

61.20
61.21	Sec. 4. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA
 	$
	-0-
	$
	(6,172,000)
	
61.22 	The Board of Regents must not increase 
61.23 	student tuition or fees beyond the amount 
61.24 	currently planned for the next academic year.
61.25 	The system base is reduced by $8,666,000 
61.26 	in fiscal year 2010 and $8,665,000 in fiscal 
61.27 	year 2011.

61.28 	Sec. 5. Minnesota Statutes 2006, section 13.32, subdivision 3, is amended to read:
61.29 		Subd. 3.Private data; when disclosure is permitted. Except as provided in 
61.30 	subdivision 5, educational data is private data on individuals and shall not be disclosed 
61.31 	except as follows:
61.32 	(a) pursuant to section 13.05;
61.33 	(b) pursuant to a valid court order;
61.34 	(c) pursuant to a statute specifically authorizing access to the private data;
62.1 	(d) to disclose information in health and safety emergencies pursuant to the 
62.2 	provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code of Federal 
62.3 	Regulations, title 34, section 99.36;
62.4 	(e) pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1), 
62.5 	(b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3), (b)(6), (b)(7), and (i), and Code of Federal 
62.6 	Regulations, title 34, sections 99.31, 99.32, 99.33, 99.34, and99.35, and 99.39;
62.7 	(f) to appropriate health authorities to the extent necessary to administer 
62.8 	immunization programs and for bona fide epidemiologic investigations which the 
62.9 	commissioner of health determines are necessary to prevent disease or disability to 
62.10 	individuals in the public educational agency or institution in which the investigation 
62.11 	is being conducted;
62.12 	(g) when disclosure is required for institutions that participate in a program under 
62.13 	title IV of the Higher Education Act, United States Code, title 20, section 1092;
62.14 	(h) to the appropriate school district officials to the extent necessary under 
62.15 	subdivision 6, annually to indicate the extent and content of remedial instruction, including 
62.16 	the results of assessment testing and academic performance at a postsecondary institution 
62.17 	during the previous academic year by a student who graduated from a Minnesota school 
62.18 	district within two years before receiving the remedial instruction;
62.19 	(i) to appropriate authorities as provided in United States Code, title 20, section 
62.20 	1232g(b)(1)(E)(ii), if the data concern the juvenile justice system and the ability of the 
62.21 	system to effectively serve, prior to adjudication, the student whose records are released; 
62.22 	provided that the authorities to whom the data are released submit a written request for 
62.23 	the data that certifies that the data will not be disclosed to any other person except as 
62.24 	authorized by law without the written consent of the parent of the student and the request 
62.25 	and a record of the release are maintained in the student's file;
62.26 	(j) to volunteers who are determined to have a legitimate educational interest in 
62.27 	the data and who are conducting activities and events sponsored by or endorsed by the 
62.28 	educational agency or institution for students or former students;
62.29 	(k) to provide student recruiting information, from educational data held by colleges 
62.30 	and universities, as required by and subject to Code of Federal Regulations, title 32, 
62.31 	section 216;
62.32 	(l) to the juvenile justice system if information about the behavior of a student who 
62.33 	poses a risk of harm is reasonably necessary to protect the health or safety of the student 
62.34 	or other individuals;
62.35 	(m) with respect to Social Security numbers of students in the adult basic education 
62.36 	system, to Minnesota State Colleges and Universities and the Department of Employment 
63.1 	and Economic Development for the purpose and in the manner described in section 
63.2 	124D.52, subdivision 7; or
63.3 	(n) to the commissioner of education for purposes of an assessment or investigation 
63.4 	of a report of alleged maltreatment of a student as mandated by section 626.556. Upon 
63.5 	request by the commissioner of education, data that are relevant to a report of maltreatment 
63.6 	and are from charter school and school district investigations of alleged maltreatment of a 
63.7 	student must be disclosed to the commissioner, including, but not limited to, the following:
63.8 	(1) information regarding the student alleged to have been maltreated;
63.9 	(2) information regarding student and employee witnesses;
63.10 	(3) information regarding the alleged perpetrator; and
63.11 	(4) what corrective or protective action was taken, if any, by the school facility in 
63.12 	response to a report of maltreatment by an employee or agent of the school or school 
63.13 	district;
63.14 	(o) when the disclosure is of the final results of a disciplinary proceeding on a charge 
63.15 	of a crime of violence or nonforcible sex offense to the extent authorized under United 
63.16 	States Code, title 20, section 1232g(b)(6)(A) and (B) and Code of Federal Regulations, 
63.17 	title 34, sections 99.31(a)(13) and (14);
63.18 	(p) when the disclosure is information provided to the institution under United States 
63.19 	Code, title 42, section 14071, concerning registered sex offenders to the extent authorized 
63.20 	under United States Code, title 20, section 1232g(b)(7); or
63.21 	(q) when the disclosure is to a parent of a student at an institution of postsecondary 
63.22 	education regarding the student's violation of any federal, state, or local law or of any 
63.23 	rule or policy of the institution, governing the use or possession of alcohol or of a 
63.24 	controlled substance, to the extent authorized under United States Code, title 20, section 
63.25 	1232g(i), and Code of Federal Regulations, title 34, section 99.31(a)(15), and provided the 
63.26 	institution has an information release form signed by the student authorizing disclosure 
63.27 	to a parent. The institution must notify parents about the purpose and availability of the 
63.28 	information release forms. At a minimum, the institution must distribute the information 
63.29 	release forms at parent orientation meetings.

63.30 	Sec. 6. Minnesota Statutes 2006, section 13.32, is amended by adding a subdivision to 
63.31 	read:
63.32 		Subd. 11.Data to improve instruction. The Department of Education and the 
63.33 	Office of Higher Education may each share educational data with the other agency for the 
63.34 	purpose of analyzing and improving school district instruction, consistent with Code of 
64.1 	Federal Regulations, title 34, section 99.31, paragraph (a)(6). The educational data that 
64.2 	may be shared between the two agencies under this subdivision must be limited to:
64.3 	(1) student attendance data that include the name of the school or institution, school 
64.4 	district, the year or term of attendance, and term type;
64.5 	(2) student demographic and enrollment data;
64.6 	(3) student academic performance and testing data; and
64.7 	(4) any special academic services provided to a student.
64.8 	Any analysis of or report on these data must contain only summary data.

64.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

64.10 	Sec. 7. [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
64.11 		Subdivision 1.Establishment; membership. (a) A P-20 education partnership 
64.12 	is established to create a seamless education system that maximizes achievements of 
64.13 	all students, from early childhood through elementary, secondary, and postsecondary 
64.14 	education, while promoting the effective and efficient use of financial and human 
64.15 	resources. The partnership shall consist of major statewide educational groups or 
64.16 	constituencies or noneducational statewide organizations with a stated interest in P-20 
64.17 	education. Upon enactment of this legislation, the partnership members shall be those 
64.18 	currently serving on the Minnesota P-16 Education Partnership plus four legislators as 
64.19 	follows:
64.20 	(1) one senator from the majority party and one senator from the minority party, 
64.21 	appointed by the Subcommittee on Committees of the Committee on Rules and 
64.22 	Administration; and
64.23 	(2) one member of the house of representatives appointed by the speaker of the 
64.24 	house and one member of the house of representatives appointed by the minority leader 
64.25 	of the house.
64.26 	Prospective members may be nominated by any partnership member and new 
64.27 	members must be added with the approval of a two-thirds majority of the partnership 
64.28 	members.
64.29 	The partnership must seek input from nonmember organizations having expertise to 
64.30 	help inform the partnership's work.
64.31 	(b) Each partnership member must be represented by its formally designated leader 
64.32 	or the leader's designee.  The partnership must meet at least three times each calendar year.
64.33 		Subd. 2.Powers and duties; report. (a) The partnership must develop and submit 
64.34 	to the governor and the legislative committees with jurisdiction over education policy and 
64.35 	finance recommendations for maximizing the achievement of all P-20 students while 
65.1 	promoting the effective and efficient use of state resources, and maximizing the value of 
65.2 	the state's educational investment. Partnership recommendations must at least include a 
65.3 	focus on strategies, policies, and actions that:
65.4 	(1) improve the quality of and access to education for all students from preschool 
65.5 	through graduate education;
65.6 	(2) improve preparation for and transitions to postsecondary education and work; and
65.7 	(3) ensure educator quality by creating rigorous standards for teacher recruitment, 
65.8 	teacher preparation, induction and mentoring of beginning teachers, and continuous 
65.9 	professional development for career teachers.
65.10 	(b) Annually, by January 15, the partnership must submit a report to the governor 
65.11 	and the legislative committees with jurisdiction over education policy and finance 
65.12 	summarizing the partnership's progress in meeting its goals and recommending any 
65.13 	legislation needed to further partnership goals related to maximizing student achievement 
65.14 	and promoting effective and efficient use of resources.
65.15 		Subd. 3.Expiration. The partnership expires on June 30, 2019.

65.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

65.17 	Sec. 8. Minnesota Statutes 2006, section 136A.101, subdivision 8, is amended to read:
65.18 		Subd. 8.Resident student. "Resident student" means a student who meets one of 
65.19 	the following conditions:
65.20 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
65.21 	education for at least 12 months without being enrolled at a postsecondary educational 
65.22 	institution for more than five credits in any term;
65.23 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
65.24 	time the student applies;
65.25 	(3) a student who graduated from a Minnesota high school, if the student was a 
65.26 	resident of Minnesota during the student's period of attendance at the Minnesota high 
65.27 	school and the student is physically attending a Minnesota postsecondary educational 
65.28 	institution; 
65.29 	(4) a student who, after residing in the state for a minimum of one year, earned a 
65.30 	high school equivalency certificate in Minnesota;
65.31 	(5) a member, spouse, or dependent of a member of the armed forces of the United 
65.32 	States stationed in Minnesota on active federal military service as defined in section 
65.33 	190.05, subdivision 5c;
65.34 	(6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran 
65.35 	is a Minnesota resident;
66.1 	(7) a person or spouse of a person who relocated to Minnesota from an area that 
66.2 	is declared a presidential disaster area within the preceding 12 months if the disaster 
66.3 	interrupted the person's postsecondary education; or
66.4 	(7) (8) a person defined as a refugee under United States Code, title 8, section 
66.5 	1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has 
66.6 	continued to reside in Minnesota.

66.7 	Sec. 9. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
66.8 		Subd. 5.Grant stipends. The grant stipend shall be based on a sharing of 
66.9 	responsibility for covering the recognized cost of attendance by the applicant, the 
66.10 	applicant's family, and the government. The amount of a financial stipend must not 
66.11 	exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 
66.12 	deducting the following:
66.13 	(1) the assigned student responsibility of at least 4644.5 percent of the cost of 
66.14 	attending the institution of the applicant's choosing;
66.15 	(2) the assigned family responsibility as defined in section 136A.101; and 
66.16 	(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
66.17 	The minimum financial stipend is $100 per academic year.

66.18 	Sec. 10. Minnesota Statutes 2007 Supplement, section 136A.121, subdivision 7a, 
66.19 	is amended to read:
66.20 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
66.21 	office to be more than sufficient to fund projected grant demand in the second year of the 
66.22 	biennium, the office may increase the living and miscellaneous expense allowance in the 
66.23 	second year of the biennium by up to an amount that retains sufficient appropriations 
66.24 	to fund the projected grant demand. The adjustment may be made one or more times. 
66.25 	In making the determination that there are more than sufficient funds, the office shall 
66.26 	balance the need for sufficient resources to meet the projected demand for grants with the 
66.27 	goal of fully allocating the appropriation for state grants. An increase in the living and 
66.28 	miscellaneous expense allowance under this subdivision does not carry forward into a 
66.29 	subsequent biennium. This subdivision expires June 30, 2009.

66.30 	Sec. 11. Minnesota Statutes 2007 Supplement, section 136A.126, is amended to read:
66.31 	136A.126 INDIAN SCHOLARSHIPS.
67.1 		Subdivision 1.Student eligibility. The director of the Office of Higher Education 
67.2 	shall establish procedures for the distribution of scholarships to any a Minnesota resident 
67.3 	student who:
67.4 	 (1) is of one-fourth or more Indian ancestry, who;
67.5 	 (2) has applied for other existing state and federal scholarship and grant programs, 
67.6 	and who,;
67.7 	(3) if enrolled in an undergraduate program, is eligible or would be eligible to 
67.8 	receive a federal Pell Grant or a state grant based on the federal needs analysis;
67.9 	(4) is an undergraduate enrolled for nine semester credits per term or more, or the 
67.10 	equivalent, or a graduate student enrolled on a half-time basis or more according to the 
67.11 	postsecondary institution; and
67.12 	 (5) in the opinion of the director of the Office of Higher Education, based upon 
67.13 	postsecondary institution recommendations, has the capabilities to benefit from further 
67.14 	education.
67.15 		Subd. 2.Eligible programs. Scholarships must be for accredited degree programs 
67.16 	in accredited Minnesota colleges or universities or for courses in accredited Minnesota 
67.17 	business, technical, or vocational schools. Scholarships may also be given to students 
67.18 	attending Minnesota colleges that are in candidacy status for obtaining full accreditation, 
67.19 	and are eligible for and receiving federal financial aid programs. Students are also eligible 
67.20 	for scholarships when enrolled as students in Minnesota higher education institutions that 
67.21 	have joint programs with other accredited higher education institutions. Scholarships shall 
67.22 	be used to defray the total cost of education including tuition, incidental fees, books, 
67.23 	supplies, transportation, other related school costs and the cost of board and room and 
67.24 	shall be paid directly to the college or school concerned where the student receives federal 
67.25 	financial aid.
67.26 		Subd. 3.Cost of attendance. The total cost of education includes allattendance 
67.27 	shall include tuition and required fees for each student enrolling in a public institution 
67.28 	and the portion of tuition and fees for each student enrolling in a private institution that 
67.29 	does not exceed the tuition and fees at a comparable public institution. Each student shall 
67.30 	be awarded a scholarship based on a federal standardized need analysis. Applicants are 
67.31 	encouraged to apply for all other sources of financial aid charged by the institution and the 
67.32 	campus-based budget used for federal financial aid for food and shelter, books, supplies, 
67.33 	transportation, and miscellaneous expenses.
67.34 	When an Indian student satisfactorily completes the work required by a certain 
67.35 	college or school in a school year the student is eligible for additional scholarships, if 
67.36 	additional training is necessary to reach the student's educational and vocational objective.
68.1 		Subd. 4.Award amount. (a) Each student shall be awarded a scholarship based 
68.2 	on the federal need analysis. Applicants are encouraged to apply for all other sources of 
68.3 	financial aid. The amount of the award must not exceed the applicant's cost of attendance, 
68.4 	as defined in subdivision 3, after deducting:
68.5 	(1) the expected family contribution as calculated by the federal need analysis;
68.6 	(2) the amount of a federal Pell Grant award for which the applicant is eligible;
68.7 	(3) the amount of the state grant;
68.8 	(4) the sum of all federal Supplemental Educational Opportunity Grant, federal 
68.9 	Academic Competitiveness Grant, and federal Science and Mathematics Access to Retain 
68.10 	Talent Grant (SMART Grant) awards;
68.11 	(5) the sum of all institutional grants, scholarships, tuition waivers, and tuition 
68.12 	remission amounts;
68.13 	(6) the sum of all tribal scholarships;
68.14 	(7) the amount of any other state and federal gift aid; and
68.15 	(8) the amount of any private grants or scholarships.
68.16 	(b) The award shall be paid directly to the postsecondary institution where the 
68.17 	student receives federal financial aid.
68.18 	(c) Awards are limited as follows:
68.19 	(1) the maximum award for an undergraduate is $4,000 per academic year;
68.20 	(2) the maximum award for a graduate student is $6,000 per academic year; and
68.21 	(3) the minimum award for all students is $100 per academic year.
68.22 	(d) Scholarships may not be given to any Indian student for more than five three
68.23 	years of study for a two-year degree, certificate, or diploma program or five years of study 
68.24 	for a four-year degree program at the undergraduate level and for more than five years 
68.25 	at the graduate level. Students may acquire only one degree per level and one terminal 
68.26 	graduate degree. Scholarships may not be given to any student for more than ten years 
68.27 	including five years of undergraduate study and five years of graduate study.

68.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

68.29 	Sec. 12. Minnesota Statutes 2007 Supplement, section 136A.127, is amended to read:
68.30 	136A.127 ACHIEVE SCHOLARSHIP PROGRAM.
68.31 		Subdivision 1.Establishment. The Achieve Scholarship Program is established
68.32 	to provide scholarships to eligible students within the limits of appropriations for the 
68.33 	program.
69.1 		Subd. 2.Definition; qualifying program. For the purposes of this section, a 
69.2 	"qualifying program" means a rigorous secondary school program of study defined by 
69.3 	the Department of Education under agreement with the Secretary of Education for the 
69.4 	purposes of determining eligibility for the federal Academic Competitiveness Grant 
69.5 	Program under Title IV of the Higher Education Act of 1965, as amended.
69.6 		Subd. 3.Documentation of qualifying programs. The student shall request a 
69.7 	transcript from the high school. The high school shall provide a transcript to the Office 
69.8 	of Higher Education or to the eligible institution in which the student is enrolling, 
69.9 	documenting the qualifying program. The student may be required to provide additional 
69.10 	documentation such as:
69.11 	(1) official postsecondary transcript; and
69.12 	(2) official IB/AP test scores.
69.13 		Subd. 4.Student eligibility. To be eligible to receive a scholarship under this 
69.14 	section, in addition to the requirements listed under section 136A.121, a student must:
69.15 	(1) submit a Free Application for Federal Student Aid (FAFSA);
69.16 	(2) take and receive at least a grade of C for courses that comprise a rigorous 
69.17 	secondary school program of study in a high school or in a home-school setting under 
69.18 	section 120A.22, and graduate from a Minnesota high school;
69.19 	(3) have a family adjusted gross income of less than $75,000 in the last complete 
69.20 	calendar year prior to the academic year of postsecondary attendance of less than $75,000
69.21 	in which the scholarship is used;
69.22 	(4) be a United States citizen or eligible noncitizen, as defined in section 484 of the 
69.23 	Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, and 
69.24 	Code of Federal Regulations, title 34, section 668.33; and
69.25 	(5) be a Minnesota resident, as defined in section 136A.101, subdivision 8; and
69.26 	(6) be enrolled for at least three credits per quarter or semester or the equivalent at 
69.27 	an eligible institution as defined under section 136A.101, subdivision 4.
69.28 		Subd. 5.Administration. The Achieve Scholarship Program shall be administered 
69.29 	by the Minnesota Office of Higher Education. The director shall develop forms and 
69.30 	procedures necessary to administer the program.
69.31 		Subd. 6.Application. A student must complete and submit an application for 
69.32 	the Achieve scholarship.
69.33 		Subd. 7.Deadline. The deadline for the office to accept applications for Achieve 
69.34 	scholarships is 30 days after the beginning of the academic term for which the application 
69.35 	is submitted the same as that used for the state grant in section 136A.121, subdivision 13.
70.1 		Subd. 8.Documentation of qualifying household income. Achieve Scholarship 
70.2 	Program applicants must certify on the application that they meet the income eligibility 
70.3 	requirement in subdivision 5 4, clause (2) (3). The Office of Higher Education or the 
70.4 	postsecondary institution may request documentation needed to confirm income eligibility.
70.5 		Subd. 9.Scholarship awards. Minnesota Achieve scholarships shall consist of 
70.6 	$1,200 for a student who takes and receives at least a grade of C for courses required 
70.7 	under a qualifying program. The scholarships may be used to pay for qualifying expenses 
70.8 	at eligible institutions.
70.9 		Subd. 10.Qualifying expenses. Qualifying expenses are components included 
70.10 	under the cost of attendance used for federal student financial aid programs, as defined in 
70.11 	section 472 of the Higher Education Act, United States Code, title 20, sections 1091 et 
70.12 	seq., as amended.
70.13 		Subd. 11.Eligible institutions. The Achieve scholarship may only be used to 
70.14 	pay qualifying expenses at an eligible institution as defined under section 136A.101, 
70.15 	subdivision 4.
70.16 		Subd. 12.Availability of scholarship funds. A scholarship earned by a student 
70.17 	is available for four years immediately following high school graduation. The office 
70.18 	must certify to the commissioner of finance by October 1 of each year the amounts to be 
70.19 	canceled from scholarship eligibility that have expired.
70.20 		Subd. 13.Disbursement of scholarships. The office shall make two equal 
70.21 	payments to a postsecondary institution on behalf of the student. The second payment 
70.22 	must be made After the student successfully completes the first term of enrollment, the 
70.23 	second payment must be made during the student's next term of enrollment at an eligible 
70.24 	institution. If the second disbursement is not within the same academic year as the first 
70.25 	disbursement, the student must request the second disbursement.
70.26 		Subd. 14.Evaluation report. By January 15 of each odd-numbered year, the 
70.27 	Office of Higher Education shall submit a report, to the committees of the legislature with 
70.28 	jurisdiction over higher education finance and policy, regarding the success of the program 
70.29 	in increasing the enrollment of students in rigorous high school courses, including, at a 
70.30 	minimum, the following information:
70.31 	(1) the demographics of individuals participating in the program;
70.32 	(2) the grades scholarship recipients received for courses in the qualifying program 
70.33 	under subdivision 2;
70.34 	(3) the number of scholarship recipients who persisted at a postsecondary institution 
70.35 	for a second year;
70.36 	(4) the high schools attended by the program participants;
71.1 	(5) the postsecondary institutions attended by the program participants;
71.2 	(6) the academic performance of the students after enrolling in a postsecondary 
71.3 	institution; and
71.4 	(7) other information as identified by the director.

71.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
71.6 	and within the limits of appropriations applies to students who graduate from high school 
71.7 	after January 1, 2008.

71.8 	Sec. 13. Minnesota Statutes 2007 Supplement, section 136A.128, is amended by 
71.9 	adding a subdivision to read:
71.10 		Subd. 4.Administration. A nonprofit organization that receives a grant under this 
71.11 	section may use five percent of the grant amount to administer the program.

71.12 	EFFECTIVE DATE. This section is effective the day following final enactment for 
71.13 	grants under Minnesota Statutes, section 136A.128, beginning in fiscal year 2008.

71.14 	Sec. 14. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 1, is 
71.15 	amended to read:
71.16 		Subdivision 1.Prohibition. No school subject to registration shall grant a degree 
71.17 	unless such degree and its underlying curriculum are approved by the office, nor shall 
71.18 	any school subject to registration use the name "college," "academy," "institute" or 
71.19 	"university" in its name without approval by the office.

71.20 	Sec. 15. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 3, is 
71.21 	amended to read:
71.22 		Subd. 3.Application. A school subject to registration shall be granted approval 
71.23 	to use the term "college," "academy," "institute," or "university" in its name if it was 
71.24 	organized, operating, and using such term in its name on or before August 1, 2007, and if 
71.25 	it meets the other policies and standards for approval established by the office.

71.26 	Sec. 16. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 5, is 
71.27 	amended to read:
71.28 		Subd. 5.Requirements for degree and nondegree program approval. For each 
71.29 	degree and nondegree program a school offers to a student, where the student does not 
71.30 	leave Minnesota for the major portion of the program or course leading to the degree or 
71.31 	nondegree award, the school must have:
72.1 	(1) for degree programs:
72.2 	(i) qualified teaching personnel to provide the educational programs for each degree 
72.3 	for which approval is sought; 
72.4 	(2)(ii) appropriate educational programs leading to each degree for which approval 
72.5 	is sought; 
72.6 	(3)(iii) appropriate and accessible library, laboratory, and other physical facilities to 
72.7 	support the educational program for each degree for which approval is sought; and
72.8 	(4)(iv) a rationale showing that degree programs are consistent with the school's 
72.9 	mission and goals.; and
72.10 	(2) for nondegree programs:
72.11 	(i) qualified teaching personnel to provide the educational programs for which 
72.12 	approval is sought;
72.13 	(ii) appropriate educational programs leading to each award for which approval 
72.14 	is sought;
72.15 	(iii) appropriate and accessible library, laboratory, and other physical facilities to 
72.16 	support the educational program for which approval is sought; and
72.17 	(iv) a rationale showing that programs are consistent with the school's mission 
72.18 	and goals.
72.19 	Nondegree programs that are a part of an approved degree shall not require 
72.20 	additional review or approval; they shall be considered approved as a part of the degree 
72.21 	approval. Any nondegree program offered by a degree-granting school that is not a part of 
72.22 	an approved degree shall be subject to clause (2), items (i) to (iv).

72.23 	Sec. 17. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 6, is 
72.24 	amended to read:
72.25 		Subd. 6.Name. A degree-granting school may use the term "academy" or "institute" 
72.26 	in its name without meeting any additional requirements. A school may use the term 
72.27 	"college" in its name if it offers at least one program leading to an associate degree. A 
72.28 	school may use the term "university" in its name if it offers at least one program leading 
72.29 	to a master's or doctorate degree.

72.30 	Sec. 18. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 7, is 
72.31 	amended to read:
72.32 		Subd. 7.Conditional approval. The office may grant conditional approval for a 
72.33 	degree or use of a term in its name for a period of less than one year if doing so would be 
72.34 	in the best interests of currently enrolled students or prospective students. New schools 
73.1 	may be granted conditional approval for degrees or names annually for a period not to 
73.2 	exceed five years to allow them the opportunity to apply for and receive accreditation as 
73.3 	required in subdivision 1a.

73.4 	Sec. 19. Minnesota Statutes 2007 Supplement, section 136A.66, is amended to read:
73.5 	136A.66 LIST.
73.6 	The office shall maintain a list of registered institutions authorized to grant degrees 
73.7 	and schools authorized to use the name "college," "academy," "institute" or "university," 
73.8 	and shall make such list available to the public.

73.9 	Sec. 20. Minnesota Statutes 2007 Supplement, section 136A.67, is amended to read:
73.10 	136A.67 UNAUTHORIZED REPRESENTATIONS.
73.11 	No school and none of its officials or employees shall advertise or represent in 
73.12 	any manner that such school is approved or accredited by the office or the state of 
73.13 	Minnesota, except a school which is duly registered with the office, or any of its officials 
73.14 	or employees, may represent in advertising and shall disclose in catalogues, applications, 
73.15 	and enrollment materials that the school is registered with the office by prominently 
73.16 	displaying the following statement: "(Name of school) is registered as a private institution 
73.17 	with the Minnesota Office of Higher Education pursuant to sections 136A.61 to 136A.71. 
73.18 	Registration is not an endorsement of the institution. Credits earned at the institution 
73.19 	may not transfer to all other institutions."

73.20 	Sec. 21. Minnesota Statutes 2007 Supplement, section 136A.69, is amended to read:
73.21 	136A.69 FEES.
73.22 		Subdivision 1.Registration fees. The office shall collect reasonable registration 
73.23 	fees that are sufficient to recover, but do not exceed, its costs of administering the 
73.24 	registration program. The office shall charge $1,100 for initial registration fees and $950 
73.25 	for annual renewal fees.
73.26 		Subd. 2.Degree level addition fee. The office processing fee for adding a degree 
73.27 	level to an existing program is $2,000 per programdegree.
73.28 		Subd. 3.Degree or nondegree program addition fee. The office processing fee 
73.29 	for adding a degree or nondegree program that represents a significant departure in the 
73.30 	objectives, content, or method of delivery of degree or nondegree programs that are 
73.31 	currently offered by the school is $500 per degree or nondegree program.
74.1 		Subd. 4.Visit or consulting fee. If the office determines that a fact-finding visit 
74.2 	or outside consultant is necessary to review or evaluate any new or revised degree or 
74.3 	nondegree program, the office shall be reimbursed for the expenses incurred related to the 
74.4 	review as follows:
74.5 	(1) $300 for the team base fee or for a paper review conducted by a consultant if the 
74.6 	office determines that a fact-finding visit is not required;
74.7 	(2) $300 for each day or part thereof on site per team member; and
74.8 	(3) the actual cost of customary meals, lodging, and related travel expenses incurred 
74.9 	by team members.
74.10 		Subd. 5.Modification fee. The fee for modification of any existing degree or 
74.11 	nondegree program is $100 and is due if there is:
74.12 	(1) an increase or decrease of 25 percent or more from the original date of program 
74.13 	approval, in clock hours, credit hours, or calendar length of an existing degree or 
74.14 	nondegree program;
74.15 	(2) a change in academic measurement from clock hours to credit hours or vice 
74.16 	versa; or
74.17 	(3) an addition or alteration of courses that represent a 25 percent change or more in 
74.18 	the objectives, content, or methods of delivery.

74.19 	Sec. 22. Minnesota Statutes 2007 Supplement, section 136F.02, subdivision 1, is 
74.20 	amended to read:
74.21 		Subdivision 1.Membership. The board consists of 15 members appointed 
74.22 	according to this subdivision. Eleven members are appointed by the governor including 
74.23 	three members who are students who have attended an institution for at least one year 
74.24 	and are currently enrolled at least half time in a degree, diploma, or certificate program 
74.25 	or have graduated from an institution governed by the board within one year of the date 
74.26 	of appointment. The student members shall include: one member from a community 
74.27 	college, one member from a state university, and one member from a technical college. 
74.28 	The remaining four members are appointed by labor organizations. The Inter Faculty 
74.29 	Organization (IFO), the Minnesota State College Faculty (MSCF), the Minnesota 
74.30 	Association of Professional Employees (MAPE), and the American Federation of 
74.31 	State, County and Municipal Employees (AFSCME) shall each appoint one member. 
74.32 	Appointments by the governor and the labor organizations are made with the advice 
74.33 	and consent of the senate. At least one member of the board must be a resident of each 
74.34 	congressional district. The remaining members must be appointed to represent the state at 
74.35 	large. In selecting appointees, the governor and each appointing authority must consider 
75.1 	the needs of the board of trustees and the balance of the board membership with respect to 
75.2 	labor and business representation and racial, gender, geographic, and ethnic composition. 
75.3 	Three members must be students who are enrolled at least half time in a degree, diploma, 
75.4 	or certificate program or have graduated from an institution governed by the board within 
75.5 	one year of the date of appointment. The student members shall include: one member 
75.6 	from a community college, one member from a state university, and one member from a 
75.7 	technical college. The remaining members must be appointed to represent the state at large.

75.8 	Sec. 23. Minnesota Statutes 2007 Supplement, section 136F.03, subdivision 4, is 
75.9 	amended to read:
75.10 		Subd. 4.Recommendations. Except for seats filled under sectionsections 136F.04
75.11 	and 136F.045, the advisory council shall recommend at least two and not more than four 
75.12 	candidates for each seat. By April 15 of each even-numbered year in which the governor 
75.13 	makes appointments to the board, the advisory council shall submit its recommendations 
75.14 	to the governor. The governor is not bound by these recommendations.

75.15 	Sec. 24. [136F.045] LABOR ORGANIZATION BOARD MEMBER SELECTION 
75.16 	PROCESS.
75.17 	The labor organizations under section 136F.02, subdivision 1, are responsible 
75.18 	for recruiting, screening, and selecting qualified candidates for their appointments to 
75.19 	the board. The organizations must develop a statement of selection criteria for board 
75.20 	membership and a process for selecting candidates to meet the board needs and balance 
75.21 	required under section 136F.02, subdivision 1.

75.22 	Sec. 25. [136F.19] POWER OF YOU PROGRAM.
75.23 		Subdivision 1.Establishment. The power of you program is established at 
75.24 	Metropolitan State University, Minneapolis Community and Technical College, and St. 
75.25 	Paul College to promote the preparation and enrollment of students in postsecondary 
75.26 	education through partnerships with high schools and school districts.
75.27 		Subd. 2.Allocations. (a) Minnesota State Colleges and Universities shall allocate 
75.28 	the power of you funds at Metropolitan State University, Minneapolis Community and 
75.29 	Technical College, and St. Paul College.
75.30 	(b) The funds must be used to increase student financial aid to fill the gap between 
75.31 	costs and federal and state grants to students who:
75.32 	(1) graduate from a public Minneapolis or St. Paul high school;
75.33 	(2) enroll full time immediately after graduation; and
76.1 	(3) are participants in the power of you.

76.2 	Sec. 26. Minnesota Statutes 2006, section 136F.90, subdivision 1, is amended to read:
76.3 		Subdivision 1.Duties. For the state colleges and universities, the Board of Trustees 
76.4 	of the Minnesota State Colleges and Universities may:
76.5 	(1) acquire by purchase or otherwise, construct, complete, remodel, equip, operate, 
76.6 	control, and manage residence halls, dormitories, dining halls, student union buildings, 
76.7 	parking facilities, and any other similar revenue-producing buildings of such type and 
76.8 	character as the board finds necessary for the good and benefit of the state colleges and 
76.9 	universities, and may acquire property whether real, personal, or mixed, by gift, purchase, 
76.10 	or otherwise; provided that no contract for the construction of any building shall be 
76.11 	entered into until financing has been approved by the legislature;
76.12 	(2) maintain and operate any buildings or structures and charge for their use, and 
76.13 	conduct any activities that are commonly conducted in connection with the buildings 
76.14 	or structures;
76.15 	(3) enter into contracts for the purposes of sections 136F.90 to 136F.98; 
76.16 	(4) acquire building sites and buildings or structures by gift, purchase, or otherwise 
76.17 	and pledge the revenues from them for the payment of any bonds issued for that purpose 
76.18 	as provided in sections 136F.90 to 136F.98; 
76.19 	(5) borrow money and issue and sell bonds in an amount or amounts the legislature 
76.20 	authorizes for the purpose of acquiring, constructing, completing, remodeling, or 
76.21 	equipping any buildings or structures, and acquiring sites, and refund and refinance the 
76.22 	bonds by the issuance and sale of refunding bonds when the board finds that it is in 
76.23 	the public interest. The bonds shall be sold and issued by the board in the manner and 
76.24 	upon the terms and conditions provided by chapter 475, except as otherwise provided in 
76.25 	this section. The bonds are payable only from and secured by an irrevocable pledge of 
76.26 	the revenues to be derived from the operation of any buildings or structures acquired, 
76.27 	constructed, completed, remodeled, or equipped in whole or in part with the proceeds of 
76.28 	the bonds and from other income and revenues described in section 136F.92, clause (1), 
76.29 	the board by resolution specifies, and notwithstanding this limitation all bonds issued 
76.30 	under sections 136F.90 to 136F.98 shall have the qualities of negotiable instruments under 
76.31 	the laws of this state. The legislature shall not appropriate money from the general fund to 
76.32 	pay for these bonds.

76.33 	Sec. 27. Minnesota Statutes 2007 Supplement, section 141.25, subdivision 5, is 
76.34 	amended to read:
77.1 		Subd. 5.Bond. (a) No license shall be issued to any school which maintains, 
77.2 	conducts, solicits for, or advertises within the state of Minnesota any program, unless the 
77.3 	applicant files with the office a continuous corporate surety bond written by a company 
77.4 	authorized to do business in Minnesota conditioned upon the faithful performance of all 
77.5 	contracts and agreements with students made by the applicant.
77.6 	(b)(1) The amount of the surety bond shall be ten percent of the preceding year's 
77.7 	gross income from student tuition, fees, and other required institutional charges, but in 
77.8 	no event less than $10,000 nor greater than $250,000, except that a school may deposit a 
77.9 	greater amount at its own discretion. A school in each annual application for licensure 
77.10 	must compute the amount of the surety bond and verify that the amount of the surety bond 
77.11 	complies with this subdivision, unless the school maintains a surety bond equal to at least 
77.12 	$250,000. A school that operates at two or more locations may combine gross income 
77.13 	from student tuition, fees, and other required institutional charges for all locations for the 
77.14 	purpose of determining the annual surety bond requirement. The gross tuition and fees 
77.15 	used to determine the amount of the surety bond required for a school having a license for 
77.16 	the sole purpose of recruiting students in Minnesota shall be only that paid to the school 
77.17 	by the students recruited from Minnesota.
77.18 	(2) A school required to obtain a private career school license due to the use of 
77.19 	"academy," "institute," "college," or "university" in its name and which is also licensed by 
77.20 	another state agency or board shall be required to provide a school bond of $10,000.
77.21 	(c) The bond shall run to the state of Minnesota and to any person who may have a 
77.22 	cause of action against the applicant arising at any time after the bond is filed and before it 
77.23 	is canceled for breach of any contract or agreement made by the applicant with any student. 
77.24 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
77.25 	exceed the principal sum deposited by the school under paragraph (b). The surety of any 
77.26 	bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 
77.27 	of liability for any breach of condition occurring after the effective date of cancellation.
77.28 	(d) In lieu of bond, the applicant may deposit with the commissioner of finance a 
77.29 	sum equal to the amount of the required surety bond in cash, or securities as may be 
77.30 	legally purchased by savings banks or for trust funds in an aggregate market value equal 
77.31 	to the amount of the required surety bond.
77.32 	(e) Failure of a school to post and maintain the required surety bond or deposit under 
77.33 	paragraph (d) shall result in denial, suspension, or revocation of the school's license.

77.34 	Sec. 28. Minnesota Statutes 2006, section 141.25, is amended by adding a subdivision 
77.35 	to read:
78.1 		Subd. 13.Schools licensed by another state agency or board. A school required to 
78.2 	obtain a private career school license due to the use of "academy," "institute," "college," or 
78.3 	"university" in its name and which is also licensed by another state agency or board shall 
78.4 	be required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7), 
78.5 	and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12.

78.6 	Sec. 29. Minnesota Statutes 2007 Supplement, section 141.28, subdivision 1, is 
78.7 	amended to read:
78.8 		Subdivision 1.Disclosure required; advertisement restricted. A Schools, agents 
78.9 	of schools, and solicitors may not advertise or represent in writing or orally that such 
78.10 	school is approved or accredited by the state of Minnesota, except that any school, agent, 
78.11 	or solicitor may represent in advertisements and shall disclose in catalogues, applications, 
78.12 	and enrollment materials that the school is duly licensed by the state by prominently 
78.13 	displaying the following statement:
78.14 	"(Name of school) is licensed as a private career school with the Minnesota Office of 
78.15 	Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. Licensure is 
78.16 	not an endorsement of the institution. Credits earned at the institution may not transfer 
78.17 	to all other institutions."

78.18 	Sec. 30. Minnesota Statutes 2007 Supplement, section 141.35, is amended to read:
78.19 	141.35 EXEMPTIONS.
78.20 	Sections 141.21 to 141.32 shall not apply to the following:
78.21 	(1) public postsecondary institutions;
78.22 	(2) postsecondary institutions registered under sections 136A.615 136A.61to 
78.23 	136A.71;
78.24 	(3) schools of nursing accredited by the state Board of Nursing or an equivalent 
78.25 	public board of another state or foreign country;
78.26 	(4) private schools complying with the requirements of section 120A.22, subdivision 
78.27 	4;
78.28 	(5) courses taught to students in a valid apprenticeship program taught by or 
78.29 	required by a trade union;
78.30 	(6) schools exclusively engaged in training physically or mentally disabled persons 
78.31 	for the state of Minnesota;
78.32 	(7) schools licensed by boards authorized under Minnesota law to issue licenses
78.33 	except schools required to obtain a private career school license due to the use of 
78.34 	"academy," "institute," "college," or "university" in their names;
79.1 	(8) schools and educational programs, or training programs, contracted for by 
79.2 	persons, firms, corporations, government agencies, or associations, for the training of their 
79.3 	own employees, for which no fee is charged the employee;
79.4 	(9) schools engaged exclusively in the teaching of purely avocational, recreational, 
79.5 	or remedial subjects as determined by the office except schools required to obtain a private 
79.6 	career school license due to the use of "academy," "institute," "college," or "university" 
79.7 	in their names;
79.8 	(10) classes, courses, or programs conducted by a bona fide trade, professional, or 
79.9 	fraternal organization, solely for that organization's membership;
79.10 	(11) programs in the fine arts provided by organizations exempt from taxation 
79.11 	under section 290.05 and registered with the attorney general under chapter 309. For 
79.12 	the purposes of this clause, "fine arts" means activities resulting in artistic creation or 
79.13 	artistic performance of works of the imagination which are engaged in for the primary 
79.14 	purpose of creative expression rather than commercial sale or employment. In making 
79.15 	this determination the office may seek the advice and recommendation of the Minnesota 
79.16 	Board of the Arts;
79.17 	(12) classes, courses, or programs intended to fulfill the continuing education 
79.18 	requirements for licensure or certification in a profession, that have been approved by 
79.19 	a legislatively or judicially established board or agency responsible for regulating the 
79.20 	practice of the profession, and that are offered exclusively to an individual practicing 
79.21 	the profession;
79.22 	(13) classes, courses, or programs intended to prepare students to sit for 
79.23 	undergraduate, graduate, postgraduate, or occupational licensing and occupational 
79.24 	entrance examinations;
79.25 	(14) classes, courses, or programs providing 16 or fewer clock hours of instruction 
79.26 	that are not part of the curriculum for an occupation or entry level employment except 
79.27 	schools required to obtain a private career school license due to the use of "academy," 
79.28 	"institute," "college," or "university" in their names;
79.29 	(15) classes, courses, or programs providing instruction in personal development, 
79.30 	modeling, or acting;
79.31 	(16) training or instructional programs, in which one instructor teaches an individual 
79.32 	student, that are not part of the curriculum for an occupation or are not intended to prepare 
79.33 	a person for entry level employment; and
79.34 	(17) schools with no physical presence in Minnesota, as determined by the office, 
79.35 	engaged exclusively in offering distance instruction that are located in and regulated 
79.36 	by other states or jurisdictions.

80.1 	Sec. 31. Minnesota Statutes 2006, section 144.1501, subdivision 2, is amended to read:
80.2 		Subd. 2.Creation of account. (a) A health professional education loan forgiveness 
80.3 	program account is established. The commissioner of health shall use money from the 
80.4 	account to establish a loan forgiveness program:
80.5 	(1) for medical residents agreeing to practice in designated rural areas or underserved 
80.6 	urban communities or specializing in the area of pediatric psychiatry;
80.7 	(2) for midlevel practitioners agreeing to practice in designated rural areas or to teach 
80.8 	for at least 20 hours 12 credit hours, or 720 hours  per week year  in the nursing field in a 
80.9 	postsecondary program at the undergraduate level or the equivalent at the graduate level;
80.10 	(3) for nurses who agree to practice in a Minnesota nursing home or intermediate 
80.11 	care facility for persons with developmental disability or to teach for at least 20 hours12 
80.12 	credit hours, or 720 hours per week year in the nursing field in a postsecondary program at 
80.13 	the undergraduate level or the equivalent at the graduate level;
80.14 	(4) for other health care technicians agreeing to teach for at least 20 hours 12 credit 
80.15 	hours, or 720 hours  per week year  in their designated field in a postsecondary program
80.16 	at the undergraduate level or the equivalent at the graduate level. The commissioner, in 
80.17 	consultation with the Healthcare Education-Industry Partnership, shall determine the 
80.18 	health care fields where the need is the greatest, including, but not limited to, respiratory 
80.19 	therapy, clinical laboratory technology, radiologic technology, and surgical technology;
80.20 	(5) for pharmacists who agree to practice in designated rural areas; and
80.21 	(6) for dentists agreeing to deliver at least 25 percent of the dentist's yearly patient 
80.22 	encounters to state public program enrollees or patients receiving sliding fee schedule 
80.23 	discounts through a formal sliding fee schedule meeting the standards established by 
80.24 	the United States Department of Health and Human Services under Code of Federal 
80.25 	Regulations, title 42, section 51, chapter 303.
80.26 	(b) Appropriations made to the account do not cancel and are available until 
80.27 	expended, except that at the end of each biennium, any remaining balance in the account 
80.28 	that is not committed by contract and not needed to fulfill existing commitments shall 
80.29 	cancel to the fund.

80.30 	Sec. 32. Laws 2007, chapter 144, article 1, section 3, subdivision 2, is amended to read:

80.31	Subd. 2. State Grants
 		147,400,000 
		144,138,000 
	
80.32 	If the appropriation in this subdivision for 
80.33 	either year is insufficient, the appropriation 
80.34 	for the other year is available for it. 
81.1 	For the biennium, the tuition maximum for 
81.2 	students in four-year programs is $9,838 in 
81.3 	each year for students in four-year programs, 
81.4 	and for students in two-year programs, is 
81.5 	$6,114 in the first year and $5,808 in the 
81.6 	second year. 
81.7 	This appropriation sets the living and 
81.8 	miscellaneous expense allowance at $5,900 
81.9 	each year. 
81.10 	Of the appropriation in the second year, 
81.11 	$3,800,000 must be transferred to the Board 
81.12 	of Trustees of the Minnesota State Colleges 
81.13 	and Universities for the power of you 
81.14 	program under section 136F.19. Up to half 
81.15 	this amount must be used for pilot programs 
81.16 	under section 36.
81.17 	Of the appropriation in the second year, 
81.18 	$200,000 is for the teachers of color financial 
81.19 	aid pilot program under section 37.

81.20 	Sec. 33. Laws 2007, chapter 144, article 1, section 3, subdivision 18, is amended to 
81.21 	read:

81.22	Subd. 18. Transfers
 					
81.23 	The Minnesota Office of Higher Education 
81.24 	may transfer unencumbered balances from 
81.25 	the appropriations in this section to the 
81.26 	state grant appropriation, the interstate 
81.27 	tuition reciprocity appropriation, the 
81.28 	child care grant appropriation, the Indian 
81.29 	scholarship appropriation, the state work 
81.30 	study appropriation, the public safety officers' 
81.31 	survivors appropriation, and the Minnesota 
81.32 	college savings plan appropriation. Transfers 
81.33 	from the child care or state work study 
81.34 	appropriations may only be made to the 
82.1 	extent there is a projected surplus in the 
82.2 	appropriation. A transfer may be made 
82.3 	only with the prior written approval of the 
82.4 	commissioner of finance and prior written 
82.5 	notice to the chairs of the senate and house 
82.6 	committees with jurisdiction over higher 
82.7 	education finance. 

82.8 	Sec. 34. Laws 2007, chapter 144, article 1, section 5, subdivision 2, is amended to read:

82.9	Subd. 2. Operations and Maintenance
 		621,184,000 
		637,824,000 
	
82.10 	This appropriation includes funding for 
82.11 	operation and maintenance of the system 
82.12 	including amounts to advance the University 
82.13 	of Minnesota's efforts to sustain quality 
82.14 	and competitiveness; and funding for the 
82.15 	"Advancing Education" initiatives including 
82.16 	an Ojibwe Indian language program on the 
82.17 	Duluth campus. 
82.18 	This appropriation includes funding to 
82.19 	establish banded tuition at the Morris, 
82.20 	Crookston, and Duluth campuses to reduce 
82.21 	tuition costs for students. 
82.22 	This appropriation includes funding for 
82.23 	scholarships for undergraduate Minnesota 
82.24 	resident students with family income under 
82.25 	$150,000 per year. This appropriation must 
82.26 	be matched with $1.50 of nonstate money for 
82.27 	each $1 of state money. 
82.28 	This appropriation includes funding for the 
82.29 	Center for Transportation Studies to complete 
82.30 	a study to assess public policy options for 
82.31 	reducing the volume of greenhouse gases 
82.32 	emitted from the transportation sector in 
82.33 	Minnesota. The Center for Transportation 
82.34 	Studies must report its preliminary findings 
83.1 	to the legislature by February 1, 2008, and 
83.2 	must issue its full report by June 1, 2008. 
83.3 	This is a onetime appropriation. 
83.4 	This appropriation includes funding to 
83.5 	establish an India Center to improve and 
83.6 	promote relations with India and Southeast 
83.7 	Asia. The center must partner with public 
83.8 	and private organizations in Minnesota to: 
83.9 	(1) foster an understanding of the history, 
83.10 	culture, and values of India; 
83.11 	(2) serve as a resource and catalyst to 
83.12 	promote economic, governmental, and 
83.13 	academic pursuits involving India; and 
83.14 	(3) facilitate educational and business 
83.15 	exchanges and partnerships, collaborative 
83.16 	research, and teaching and training activities 
83.17 	for Minnesota students and teachers. 
83.18 	The Board of Regents may establish an 
83.19 	advisory council to facilitate the mission 
83.20 	and objectives of the India Center and must 
83.21 	report on the progress of the India Center 
83.22 	by February 15, 2008, to the governor 
83.23 	and chairs of the legislative committees 
83.24 	responsible for higher education finance. 
83.25 	This appropriation must be matched by an 
83.26 	equal amount of nonstate money. This is a 
83.27 	onetime appropriation. 
83.28 	This appropriation includes funding to assist 
83.29 	in the formation of the neighborhood alliance 
83.30 	and for projects identified in section 10. The 
83.31 	alliance, the Board of Regents, and the city of 
83.32 	Minneapolis may cooperate on the projects 
83.33 	and may use public services of other entities 
83.34 	to complete all or a portion of a project. This 
83.35 	is a onetime appropriation. 
84.1 	This appropriation includes funding to 
84.2 	establish a Dakota language teacher training 
84.3 	immersion program on the Twin Cities 
84.4 	campus to prepare teachers to teach in 
84.5 	Dakota language immersion programs. 
84.6 	One Two percent of the appropriation in 
84.7 	this subdivision for the second year is 
84.8 	available when the Board of Regents of the 
84.9 	University of Minnesota demonstrates to 
84.10 	the commissioner of finance that the board 
84.11 	has met at least three of the five following 
84.12 	performance goals: 
84.13 	(1) increase financial support to pay the cost 
84.14 	of attendance for students demonstrating 
84.15 	financial need; 
84.16 	(2) maintain or improve the University of 
84.17 	Minnesota's rank in its national share of 
84.18 	total research and development expenditures 
84.19 	reported to the National Science Foundation 
84.20 	over the 2007 ranking; 
84.21 	(3) increase by at least five percent, compared 
84.22 	to fiscal year 2007, the number of degrees 
84.23 	awarded in science, technology, engineering, 
84.24 	mathematics, and health sciences disciplines; 
84.25 	(4) increase by at least five percent, compared 
84.26 	to fiscal year 2007, the amount of financial 
84.27 	support from key funding sources for 
84.28 	renewable energy research; and 
84.29 	(5) increase and improve interaction and 
84.30 	research activity beneficial to business and 
84.31 	industry. 
84.32 	By October 1, 2007, the Board of Regents 
84.33 	and the Office of Higher Education must 
84.34 	agree on specific numerical indicators and 
85.1 	definitions for each of the five goals that will 
85.2 	be used to demonstrate the University of 
85.3 	Minnesota's attainment of each goal. 
85.4 	On or before April 1, 2008, the Board 
85.5 	of Regents must report to the legislative 
85.6 	committees with primary jurisdiction over 
85.7 	higher education finance and policy the 
85.8 	progress of the University of Minnesota 
85.9 	toward attaining the goals. 

85.10 	Sec. 35. Laws 2007, chapter 144, article 1, section 5, subdivision 5, is amended to read:

85.11
85.12	Subd. 5. University of Minnesota and Mayo 
Foundation Partnership
 		25,000,000 
		-0- 
	
85.13 	For the direct and indirect expenses of the 
85.14 	collaborative research partnership between 
85.15 	the University of Minnesota and the Mayo 
85.16 	Foundation for research in biotechnology 
85.17 	and medical genomics. For fiscal years 2010 
85.18 	and 2011, the base shall be $8,000,000 in 
85.19 	each year. This appropriation is available 
85.20 	until expended. An annual report on the 
85.21 	expenditure of these funds must be submitted 
85.22 	to the governor, the chair of the house 
85.23 	bioscience and emerging technologies 
85.24 	committee, and the chairs of the senate and 
85.25 	house committees responsible for higher 
85.26 	education and economic development by 
85.27 	June 30 of each fiscal year. At a minimum, 
85.28 	the report must include information on 
85.29 	the number of patents, disclosures, and 
85.30 	licensing agreements; the amount generated 
85.31 	in royalties and how the royalty money is 
85.32 	spent; and the number of companies created, 
85.33 	where they are located, how many jobs are 
85.34 	created, and the amount of venture capital 
85.35 	raised.

86.1 	Sec. 36. POWER OF YOU PILOT PROGRAMS.
 86.2 		Subdivision 1.Power of you pilot programs. Pilots shall be established in suburban 
86.3 	and rural sites to test the expansion of power of you. In addition to the requirements 
86.4 	under Minnesota Statutes, section 136F.19, the power of you pilot programs must follow 
86.5 	the model set forth by the power of you at Metropolitan State University, Minneapolis 
86.6 	Community and Technical College, and St. Paul College, increasing financial aid to 
86.7 	students enrolled in the program.
86.8 		Subd. 2.Suburban pilot selection. By June 1, 2008, Metropolitan State University 
86.9 	shall select one technical college and one community college or community-technical 
86.10 	college to each partner with a high school in developing a power of you pilot program, 
86.11 	to test expansion of the program established under Minnesota Statutes, section 136F.19, 
86.12 	to students in Twin Cities' suburban areas. Metropolitan State University shall choose 
86.13 	the colleges' high school partners.
86.14 		Subd. 3.Rural pilot selection. By June 1, 2008, the chancellor of Minnesota 
86.15 	State Colleges and Universities shall select two rural colleges, one being a multicampus 
86.16 	institution in an agricultural part of the state and the other a multicampus institution in a 
86.17 	nonagricultural part of the state dependent on natural resources, for power of you pilot 
86.18 	programs. Each of the campus sites of the colleges shall work with a high school to test 
86.19 	the application of the power of you pilot program established under Minnesota Statutes, 
86.20 	section 136F.19, to nonmetropolitan students and colleges. The chancellor shall choose 
86.21 	the campus' high school partners.

86.22 	Sec. 37. TEACHERS OF COLOR FINANCIAL AID PILOT PROGRAM.
 86.23 		Subdivision 1.Establishment. The teachers of color financial aid pilot program 
86.24 	is established under the supervision of the Minnesota Office of Higher Education to 
86.25 	encourage academically talented postsecondary students of color to become teachers 
86.26 	of early childhood, elementary, or secondary education; to increase the academic 
86.27 	achievement of diverse student populations; to help close the existing student achievement 
86.28 	gaps by creating a cadre of qualified new teachers; and to encourage students of color 
86.29 	attending four-year institutions to enroll in a teacher preparation program and students 
86.30 	attending two-year colleges to transfer to and enroll in a teacher preparation program at 
86.31 	eligible institutions. Financial aid under this pilot program is to provide incentives for 
86.32 	postsecondary students of color to enter teacher preparation programs and to teach in 
86.33 	Minnesota school districts.
86.34 		Subd. 2.Definitions. For the purposes of this section, the following terms have 
86.35 	the meanings given them: 
87.1 	(1) "student of color" means a student who is African American, African immigrant, 
87.2 	American Indian, Alaskan native, Asian American or Pacific Islander, or Hispanic;
87.3 	(2) "director" means the director of the Minnesota Office of Higher Education;
87.4 	(3) "eligible institution" means a public four-year postsecondary institution with an 
87.5 	approved teacher preparation program that is participating in a pilot partnership under 
87.6 	subdivision 5; and
87.7 	(4) "teacher preparation program" means a program at an institution that prepares 
87.8 	students to be teachers.
87.9 		Subd. 3.Grants. (a) The director shall award grants under this section to eligible 
87.10 	students as an incentive to enter teacher preparation programs. An eligible student must 
87.11 	submit an application for a grant under this section for the student's junior and senior years 
87.12 	in a teacher preparation program. Applications must be submitted to the director in the 
87.13 	form and manner and with the information required by the director. 
87.14 	(b) An eligible student who is enrolled as a junior or senior in a teacher preparation 
87.15 	program at an eligible institution may receive a grant under this section of up to $5,000 
87.16 	each year for a maximum of two academic years or the equivalent at an eligible institution 
87.17 	if the student continues to make satisfactory progress toward a baccalaureate degree 
87.18 	in education.
87.19 	(c) Grants under this section are made within the limits of appropriations for the 
87.20 	pilot program. The director may prorate the grant awards and the length of time of the 
87.21 	award for students who attend part-time. The director must give priority for grants 
87.22 	under this section to students who are eligible for the Pell grant or for a state grant under 
87.23 	Minnesota Statutes, section 136A.121.
87.24 		Subd. 4.Student eligibility. A student is eligible to receive a grant under this 
87.25 	section if the student:
87.26 	(1) is an American citizen or eligible noncitizen residing in Minnesota;
87.27 	(2) certifies that the student is a student of color;
87.28 	(3) is enrolled in an eligible institution and making satisfactory academic progress; 
87.29 	and
87.30 	(4) is admitted to an approved teacher preparation program at an eligible institution.
87.31 		Subd. 5.Pilot partnerships. Up to four partnerships between a public four-year 
87.32 	institution in Minnesota with an approved teacher preparation program and at least one 
87.33 	Minnesota school district may participate in the teachers of color financial aid pilot 
87.34 	program. Of the four partnerships, one must be a partnership between Winona State 
87.35 	University and the Rochester school district and one must be a partnership between St. 
87.36 	Cloud State University and Robbinsdale public schools. The director must select the 
88.1 	other partnerships for the pilot program based on applications submitted according to the 
88.2 	timeline established and with information required by the director. Each partnership 
88.3 	must agree to devise a plan to recruit students of color for teacher preparation programs 
88.4 	and assistance under this section. Recruitment of students must include recruiting and 
88.5 	encouraging talented students of color who attend two-year colleges to transfer to teacher 
88.6 	preparation programs at participating pilot institutions. 
88.7 		Subd. 6.Teachers of color program promotion. The director may use up to 
88.8 	$25,000 of the appropriation for the program under this section for the administration and 
88.9 	promotion of the pilot program and to assist with the recruitment of students of color 
88.10 	for teacher preparation programs. The director must consult with the commissioner of 
88.11 	education, the University of Minnesota, Minnesota State Colleges and Universities, and 
88.12 	private colleges to develop strategies to recruit, retain, and mentor students in pilot 
88.13 	programs while the students attend a teacher preparation program. To the extent possible, 
88.14 	existing state or private programs must be used to provide recruitment, retention, and 
88.15 	mentoring services under this subdivision.
88.16 		Subd. 7.Report. The director must report to the committees of the legislature with 
88.17 	responsibility for higher education finance by February 1, 2009, on the teachers of color 
88.18 	financial aid pilot project. The report must include an evaluation of participation with 
88.19 	recommendations on the program design, including the potential to expand the program to 
88.20 	graduate education programs. The report must also make recommendations on continued 
88.21 	funding for the program.

88.22 	Sec. 38. REPORT TO LEGISLATURE.
 88.23 	The staff of the Office of the Chancellor of Minnesota State Colleges and 
88.24 	Universities shall evaluate the performance of the power of you pilot programs established 
88.25 	at the locations chosen in section 36 and in Minnesota Statutes, section 136F.19, to 
88.26 	determine the effects on participation rates, retention, and potential enhancement of the 
88.27 	workforce, and shall evaluate the costs and benefits of the pilot programs. The Office of 
88.28 	the Chancellor shall report the results of the evaluation to the committees in the senate and 
88.29 	house of representatives with jurisdiction over higher education by January 15, 2010.

88.30 	Sec. 39. 2008 APPOINTMENTS TO THE BOARD OF TRUSTEES.
 88.31 	Notwithstanding Minnesota Statutes, section 136F.02, the governor shall make no 
88.32 	appointments to the Board of Trustees of the Minnesota State Colleges and Universities 
88.33 	for board terms expiring in 2008 and all appointments for these seats must be made by the 
88.34 	labor organizations under Minnesota Statutes, section 136F.02, subdivision 1. Beginning 
89.1 	in 2008 and every six years thereafter, the IFO, MSCF, MAPE, and AFSCME must each 
89.2 	appoint one member to the board of trustees according to the requirements of Minnesota 
89.3 	Statutes, sections 136F.02, subdivision 1, and 136F.045.

89.4 	ARTICLE 4
89.5 	JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

89.6	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
89.7 	The amounts shown in this section summarize direct appropriations or reductions, 
89.8 	by fund, made in this article.

89.9			2008
		2009
		Total
	
89.10	General
	$
	(3,000,000)
	$
	2,218,000
	$
	(782,000)
	
89.11	Cancellations
		-0-
		2,758,000
		2,758,000
	
89.12	Transfers From Other Funds
		-0-
		22,000,000
		22,000,000
	
89.13	Total
	$
	(3,000,000)
	$
	(22,540,000)
	$
	(25,540,000)

89.14
89.15	Sec. 2. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS AND 
REDUCTIONS.
 	
89.16 	The dollar amounts in the columns under "Appropriations and Reductions" are added 
89.17 	to or, if shown in parentheses, subtracted from the appropriations in Laws 2007, chapter 
89.18 	135, or other law to the specified agencies. The appropriations are from the general fund, 
89.19 	or another named fund, and are available for the fiscal years indicated for each purpose. 
89.20 	The figures "2008" and "2009" used in this article mean that the appropriations listed 
89.21 	under them are available for the fiscal year ending June 30, 2008, or June 30, 2009, 
89.22 	respectively. "The first year" is fiscal year 2008. "The second year" is fiscal year 2009. 
89.23 	"The biennium" is fiscal years 2008 and 2009.  Appropriations for the fiscal year ending 
89.24 	June 30, 2008, are effective the day following final enactment.

89.25
89.26				APPROPRIATIONS AND 
REDUCTIONS
	
89.27				Available for the Year
	
89.28				Ending June 30
	
89.29					2008
		2009

89.30
89.31	Sec. 3. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

89.32	Subdivision 1.Total Appropriation
 	$
	(3,000,000)
	$
	2,250,000

89.33	Appropriations by Fund
	
89.34		2008
	2009
	
89.35	General
	(3,000,000)
	2,250,000
	
90.1	Cancellations
	-0-
	2,758,000
	
90.2
90.3	Transfers From 
Other Funds
	-0-
	8,000,000
	
90.4 	The amounts that may be spent for each 
90.5 	purpose are specified in the following 
90.6 	subdivisions.

90.7
90.8	Subd. 2.Employment and Economic 
Development
 					
90.9 	$550,000 in the second year is a base 
90.10 	reduction to the department's operating 
90.11 	budget.

90.12
90.13	Subd. 3.Business and Community 
Development
 		(3,000,000)
		2,800,000

90.14	Appropriations by Fund
	
90.15	General
	(3,000,000)
	2,800,000
	
90.16 	$400,000 in the second year is for the 
90.17 	establishment and operation of the Office of 
90.18 	Science and Technology. This is a onetime 
90.19 	appropriation and is available until expended.
90.20 	$2,000,000 in the second year is for grants 
90.21 	to the six Minnesota Initiative Foundations 
90.22 	to expand existing small business revolving 
90.23 	loans with a focus on lending to entrepreneurs 
90.24 	and new businesses. The commissioner of 
90.25 	employment and economic development 
90.26 	must make equal grants to each Minnesota 
90.27 	Initiative Foundation. This is a onetime 
90.28 	appropriation.
90.29 	$200,000 in the second year is for a grant to 
90.30 	the Hennepin-Carver Workforce Investment 
90.31 	Board (WIB) to coordinate with the Partners 
90.32 	for Progress Regional Skills Consortium 
90.33 	to provide employment and training as 
90.34 	demonstrated by the Twin Cities regional 
91.1 	health care training partnership project. This 
91.2 	is a onetime appropriation.
91.3 	$125,000 in the second year is for a grant to 
91.4 	HIRED to operate its industry sector training 
91.5 	initiatives, which provide employee training 
91.6 	developed in collaboration with employers in 
91.7 	specific, high-demand industries. This is a 
91.8 	onetime appropriation.
91.9 	$75,000 in the second year is for a grant 
91.10 	to Lifetrack Resources for a onetime pilot 
91.11 	project in Rochester focusing on immigrant 
91.12 	and refugee collaborative programs, 
91.13 	including those related to job-seeking skills 
91.14 	and workplace orientation, intensive job 
91.15 	development, functional work English, and 
91.16 	on-site job coaching. This is a onetime 
91.17 	appropriation.

91.18	Subd. 4.Cancellations
 	-0-
	2,758,000
			
91.19 	Prior to July 31, 2008, the unexpended 
91.20 	balances from the following appropriations 
91.21 	are canceled to the general fund:
91.22 	(1) the appropriation made in Laws 2005, 
91.23 	First Special Session chapter 3, article 
91.24 	10, section 23, to the foreign trade zone 
91.25 	authority; and
91.26 	(2) the appropriation made in Laws 
91.27 	2005, First Special Session chapter 1, 
91.28 	article 3, section 2, subdivision 2, for 
91.29 	the methamphetamine laboratory cleanup 
91.30 	revolving loan fund.
91.31 	Prior to July 31, 2008, of the unexpended 
91.32 	balance in the job skills partnership account, 
91.33 	$2,000,000 is canceled to the general fund.

91.34	Subd. 5.Transfers
 	-0-
	8,000,000
			
92.1 	Prior to July 31, 2008, the amount specified 
92.2 	from the unexpended balance of the 
92.3 	workforce development fund must be 
92.4 	transferred to the general fund.

92.5
92.6	Subd. 6.Minnesota Minerals 21st Century 
Fund
 					
92.7 	Notwithstanding Minnesota Statutes, 
92.8 	section 116J.423, by June 30, 2009, the 
92.9 	commissioner shall make a $1,000,000 grant 
92.10 	and a $1,000,000 loan from the Minnesota 
92.11 	Minerals 21st Century Fund to Magnetation, 
92.12 	Inc. for reclamation of iron ore.

92.13	Sec. 4. LABOR AND INDUSTRY

92.14	Subdivision 1.Base Reduction
 	$
	-0-
	$
	(43,000)
	
92.15 	$43,000 in the second year is a base reduction 
92.16 	to the municipal building permit reporting 
92.17 	unit in the labor standards program. The 
92.18 	commissioner must not reduce funding 
92.19 	available for prevailing wage enforcement 
92.20 	and must fill all positions when vacancies 
92.21 	become available.

92.22	Subd. 2.Transfers
 		-0-
		14,000,000
	
92.23 	Prior to July 31, 2008, the amount specified 
92.24 	from the unexpended balance of the 
92.25 	worker's compensation special fund must be 
92.26 	transferred to the general fund.

92.27
92.28	Sec. 5. BUREAU OF MEDIATION 
SERVICES
 	$
	-0-
	$
	(69,000)
	
92.29 	This is a base reduction.

92.30
92.31	Sec. 6. COMBATIVE SPORTS 
COMMISSION
 	$
	-0-
	$
	80,000
	
92.32 	This amount is added to the commission's 
92.33 	base budget.

93.1 	Sec. 7. Minnesota Statutes 2006, section 116J.423, is amended by adding a subdivision 
93.2 	to read:
93.3 		Subd. 2a.Grants authorized. Notwithstanding subdivision 2, the commissioner 
93.4 	may use money in the fund to make grants to a city, county, or to a county regional rail 
93.5 	authority as appropriate, for public infrastructure needed to support an eligible project 
93.6 	under this section. Grant money may be used by the city, county, or regional rail authority 
93.7 	to acquire right-of-way and mitigate loss of wetlands and runoff of storm water; to 
93.8 	predesign, design, construct, and equip roads and rail lines; and, in cooperation with 
93.9 	municipal utilities, to predesign, design, construct, and equip natural gas pipelines, electric 
93.10 	infrastructure, water supply systems, and wastewater collection and treatment systems. 
93.11 	Grants made under this subdivision are available until expended.

93.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

93.13 	Sec. 8. [116J.996] MILITARY RESERVIST ECONOMIC INJURY LOANS.
93.14 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
93.15 	section.
93.16 	(b) "Active service" has the meaning given in section 190.05.
93.17 	(c) "Commissioner" means the commissioner of employment and economic 
93.18 	development.
93.19 	(d) "Eligible business" means a small business, as defined in section 645.445, that 
93.20 	was operating in Minnesota on the date a military reservist received orders for active 
93.21 	service.
93.22 	(e) "Essential employee" means a military reservist who is an owner or employee 
93.23 	of an eligible business and whose managerial or technical expertise is critical to the 
93.24 	day-to-day operation of the eligible business.
93.25 	(f) "Military reservist" means a member of the reserve component of the armed 
93.26 	forces.
93.27 	(g) "Reserve component of the armed forces" has the meaning given it in United 
93.28 	States Code, title 10, section 101(c).
93.29 	(h) "Substantial economic injury" means an economic harm to an eligible business 
93.30 	that results in the inability of the eligible business to:
93.31 	(1) meet its obligations as they mature;
93.32 	(2) pay its ordinary and necessary operating expenses; or
93.33 	(3) manufacture, produce, market, or provide a product or service ordinarily 
93.34 	manufactured, produced, marketed, or provided by the eligible business.
94.1 		Subd. 2.Loan program. The commissioner may make onetime, interest-free loans 
94.2 	of up to $20,000 per borrower to eligible businesses that have sustained or are likely to 
94.3 	sustain substantial economic injury as a result of the call to active service for 180 days 
94.4 	or more of an essential employee. Loans must be made for the purpose of preventing, 
94.5 	remedying, or ameliorating the substantial economic injury.
94.6 		Subd. 3.Transfer. The commissioner of veterans affairs shall transfer funds 
94.7 	as requested by the commissioner of employment and economic development for the 
94.8 	purposes of the loan program created in this section, including costs incurred by the 
94.9 	commissioner to establish and administer the program.
94.10 		Subd. 4.Rules. Using the expedited rulemaking procedures of section 14.389, the 
94.11 	commissioner shall develop and publish expedited rules for loan applications, use of 
94.12 	funds, needed collateral, terms of loans, and other details of military reservist economic 
94.13 	injury loans.

94.14 	Sec. 9. Minnesota Statutes 2007 Supplement, section 116L.17, subdivision 1, is 
94.15 	amended to read:
94.16 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
94.17 	have the meanings given them in this subdivision.
94.18 	(b) "Commissioner" means the commissioner of employment and economic 
94.19 	development.
94.20 	(c) "Dislocated worker" means an individual who is a resident of Minnesota at the 
94.21 	time employment ceased or was working in the state at the time employment ceased and:
94.22 	(1) has been permanently separated or has received a notice of permanent separation 
94.23 	from public or private sector employment and is eligible for or has exhausted entitlement 
94.24 	to unemployment benefits, and is unlikely to return to the previous industry or occupation;
94.25 	(2) has been long-term unemployed and has limited opportunities for employment 
94.26 	or reemployment in the same or a similar occupation in the area in which the individual 
94.27 	resides, including older individuals who may have substantial barriers to employment by 
94.28 	reason of age;
94.29 	(3) has been terminated or has received a notice of termination of employment as a 
94.30 	result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
94.31 	(4) has been self-employed, including farmers and ranchers, and is unemployed as a 
94.32 	result of general economic conditions in the community in which the individual resides 
94.33 	or because of natural disasters;
95.1 	(5) has been permanently separated from employment in a restaurant, bar, or 
95.2 	lawful gambling organization from October 1, 2007, to October 1, 2009, due to the 
95.3 	implementation of any state law prohibiting smoking; or
95.4 	(6) is a veteran as defined by section 197.447, has been discharged or released from 
95.5 	active duty under honorable conditions within the last 36 months, and (i) is unemployed or 
95.6 	(ii) is employed in a job which pays less than what the veteran could verifiably earn; or
95.7 	(6)(7) is a displaced homemaker. A "displaced homemaker" is an individual who 
95.8 	has spent a substantial number of years in the home providing homemaking service and 
95.9 	(i) has been dependent upon the financial support of another; and now due to divorce, 
95.10 	separation, death, or disability of that person, must find employment to self support; or (ii) 
95.11 	derived the substantial share of support from public assistance on account of dependents 
95.12 	in the home and no longer receives such support.
95.13 	To be eligible under this clause, the support must have ceased while the worker 
95.14 	resided in Minnesota.
95.15 	(d) "Eligible organization" means a state or local government unit, nonprofit 
95.16 	organization, community action agency, business organization or association, or labor 
95.17 	organization.
95.18 	(e) "Plant closing" means the announced or actual permanent shutdown of a single 
95.19 	site of employment, or one or more facilities or operating units within a single site of 
95.20 	employment.
95.21 	(f) "Substantial layoff" means a permanent reduction in the workforce, which is 
95.22 	not a result of a plant closing, and which results in an employment loss at a single site 
95.23 	of employment during any 30-day period for at least 50 employees excluding those 
95.24 	employees that work less than 20 hours per week.

95.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.26 	Sec. 10. Minnesota Statutes 2006, section 116L.17, is amended by adding a subdivision 
95.27 	to read:
95.28 		Subd. 11.Transfer from department of veterans affairs. The commissioner of 
95.29 	veterans affairs shall transfer funds as requested by the commissioner of employment and 
95.30 	economic development to reimburse the workforce development fund for costs incurred 
95.31 	under section 116L.17, subdivision 1, paragraph (c), clause (6).

95.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

96.1 	Sec. 11. Minnesota Statutes 2007 Supplement, section 214.04, subdivision 3, is 
96.2 	amended to read:
96.3 		Subd. 3.Officers; staff. The executive director of each health-related board and 
96.4 	the executive secretary of each non-health-related board shall be the chief administrative 
96.5 	officer for the board but shall not be a member of the board. The executive director or 
96.6 	executive secretary shall maintain the records of the board, account for all fees received 
96.7 	by it, supervise and direct employees servicing the board, and perform other services as 
96.8 	directed by the board. The executive directors, executive secretaries, and other employees 
96.9 	of the following boards shall be hired by the board, and the executive directors or executive 
96.10 	secretaries shall be in the unclassified civil service, except as provided in this subdivision:
96.11 	(1) Dentistry;
96.12 	(2) Medical Practice;
96.13 	(3) Nursing;
96.14 	(4) Pharmacy;
96.15 	(5) Accountancy;
96.16 	(6) Architecture, Engineering, Land Surveying, Landscape Architecture, 
96.17 	Geoscience, and Interior Design;
96.18 	(7) Barber Examiners;
96.19 	(8) Cosmetology;
96.20 	(9) Teaching;
96.21 	(10) Peace Officer Standards and Training;
96.22 	(11) Social Work;
96.23 	(12) Marriage and Family Therapy;
96.24 	(13) Dietetics and Nutrition Practice; and
96.25 	(14) Licensed Professional Counseling.; and
96.26 	(15) Combative Sports Commission.
96.27 	The executive directors or executive secretaries serving the boards are hired by those 
96.28 	boards and are in the unclassified civil service, except for part-time executive directors 
96.29 	or executive secretaries, who are not required to be in the unclassified service. Boards 
96.30 	not requiring full-time executive directors or executive secretaries may employ them on 
96.31 	a part-time basis. To the extent practicable, the sharing of part-time executive directors 
96.32 	or executive secretaries by boards being serviced by the same department is encouraged. 
96.33 	Persons providing services to those boards not listed in this subdivision, except executive 
96.34 	directors or executive secretaries of the boards and employees of the attorney general, are 
96.35 	classified civil service employees of the department servicing the board. To the extent 
96.36 	practicable, the commissioner shall ensure that staff services are shared by the boards 
97.1 	being serviced by the department. If necessary, a board may hire part-time, temporary 
97.2 	employees to administer and grade examinations.

97.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

97.4 	Sec. 12. Minnesota Statutes 2007 Supplement, section 268.047, subdivision 1, is 
97.5 	amended to read:
97.6 		Subdivision 1.General rule. Unemployment benefits paid to an applicant, 
97.7 	including extended, additional, and shared work benefits,  will be used in computing 
97.8 	the future tax rate of a taxpaying base period employer or charged to the reimbursable 
97.9 	account of a base period nonprofit or government employer that has elected to be liable for 
97.10 	reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment 
97.11 	benefits used in computing the future tax rate of taxpaying employers or charged to the 
97.12 	reimbursable account of a nonprofit or government employer that has elected to be liable 
97.13 	for reimbursements  is the same percentage of the total amount of unemployment benefits 
97.14 	paid as the percentage of wage credits from the employer is of the total amount of wage 
97.15 	credits from all the applicant's base period employers.
97.16 	In making computations under this subdivision, the amount of wage credits, if not a 
97.17 	whole dollar,  must be computed to the nearest whole dollar.

97.18 	Sec. 13. Minnesota Statutes 2007 Supplement, section 268.047, subdivision 2, is 
97.19 	amended to read:
97.20 		Subd. 2.Exceptions for all employers. Unemployment benefits paid will not be 
97.21 	used in computing the future tax rate of a taxpaying base period employer or charged to 
97.22 	the reimbursable account of a base period nonprofit or government employer that has 
97.23 	elected to be liable for reimbursements when:
97.24 	(1) the applicant was discharged from the employment because of aggravated 
97.25 	employment misconduct as determined under section 268.095. This exception applies 
97.26 	only to unemployment benefits paid for periods after the applicant's discharge from 
97.27 	employment; 
97.28 	(2) an applicant's discharge from that employment occurred because a law required 
97.29 	removal of the applicant from the position the applicant held;
97.30 	(3) the employer is in the tourist or recreation industry and is in active operation of 
97.31 	business less than 15 calendar weeks each year and the applicant's wage credits from the 
97.32 	employer are less than 600 times the applicable state or federal minimum wage;
97.33 	(4) the employer provided regularly scheduled part-time employment to the 
97.34 	applicant during the applicant's base period and continues to provide the applicant with 
98.1 	regularly scheduled part-time employment during the benefit year of at least 90 percent 
98.2 	of the part-time employment provided in the base period, and is an involved employer 
98.3 	because of the applicant's loss of other employment. This exception terminates effective 
98.4 	the first week that the employer fails to meet the benefit year employment requirements. 
98.5 	This exception applies to educational institutions without consideration of the period 
98.6 	between academic years or terms;
98.7 	(5) the employer is a fire department or firefighting corporation or operator of 
98.8 	a life-support transportation service, and continues to provide employment for the 
98.9 	applicant as a volunteer firefighter or a volunteer ambulance service personnel during the 
98.10 	benefit year on the same basis that employment was provided in the base period. This 
98.11 	exception terminates effective the first week that the employer fails to meet the benefit 
98.12 	year employment requirements;
98.13 	(6) the applicant's unemployment from this employer was a direct result of the 
98.14 	condemnation of property by a governmental agency, a fire, flood, or act of nature, 
98.15 	where 25 percent or more of the employees employed at the affected location, including 
98.16 	the applicant, became unemployed as a result. This exception does not apply where the 
98.17 	unemployment was a direct result of the intentional act of the employer or a person acting 
98.18 	on behalf of the employer;
98.19 	(7) the unemployment benefits were paid by another state as a result of the 
98.20 	transferring of wage credits under a combined wage arrangement provided for in section 
98.21 	268.131; 
98.22 	(8) the applicant stopped working because of a labor dispute at the applicant's 
98.23 	primary place of employment if the employer was not a party to the labor dispute;
98.24 	(9) the unemployment benefits were determined overpaid unemployment benefits 
98.25 	under section 268.18; or
98.26 	(10) the applicant was employed as a replacement worker, for a period of six months 
98.27 	or longer, for an employee who is in the military reserve and was called for active duty 
98.28 	during the time the applicant worked as a replacement, and the applicant was laid off 
98.29 	because the employee returned to employment after active duty; or
98.30 	(11) the trust fund was reimbursed for the unemployment benefits by the federal 
98.31 	government.

98.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

98.33 	Sec. 14. Minnesota Statutes 2007 Supplement, section 268.085, subdivision 3, is 
98.34 	amended to read:
99.1 		Subd. 3.Payments that delay unemployment benefits. (a) An applicant is not 
99.2 	eligible to receive unemployment benefits for any week with respect to which the applicant 
99.3 	is receiving, has received, or has filed for payment, equal to or in excess of the applicant's 
99.4 	weekly unemployment benefit amount, in the form of:
99.5 	(1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause 
99.6 	does not apply to (i) vacation pay paid upon a permanent separation from employment;, or 
99.7 	(ii) vacation pay paid from a vacation fund administered by a union or a third party not 
99.8 	under the control of the employer;
99.9 	(2) severance pay, bonus pay, sick pay, and any other payments, except earnings 
99.10 	under subdivision 5, and back pay under subdivision 6, paid by an employer because 
99.11 	of, upon, or after separation from employment, but only if the payment is considered 
99.12 	wages at the time of payment under section 268.035, subdivision 29. This clause does 
99.13 	not apply to the first $5,000 of any amount of severance pay, bonus pay, sick pay, or any 
99.14 	other payments paid to an employee; or
99.15 	(3) pension, retirement, or annuity payments from any plan contributed to by a base 
99.16 	period employer including the United States government, except Social Security benefits 
99.17 	that are provided for in subdivision 4. The base period employer is considered to have 
99.18 	contributed to the plan if the contribution is excluded from the definition of wages under 
99.19 	section 268.035, subdivision 29, clause (1).
99.20 	An applicant is not considered to have received the lump sum payment if the 
99.21 	applicant immediately deposits that payment in a qualified pension plan or account.
99.22 	(b) This subdivision applies to all the weeks of payment. Payments under paragraph 
99.23 	(a), clauses (1) and (2), are applied to the period immediately following the last day 
99.24 	of employment.and The number of weeks of payment, for purposes of those clauses,
99.25 	is determined as follows:
99.26 	(1) if the payments are made periodically, the total of the payments to be received is 
99.27 	divided by the applicant's last level of regular weekly pay from the employer; or
99.28 	(2) if the payment is made in a lump sum, that sum is divided by the applicant's last 
99.29 	level of regular weekly pay from the employer.
99.30 	(c) If the payment is less than the applicant's weekly unemployment benefit amount, 
99.31 	unemployment benefits are reduced by the amount of the payment. If the computation 
99.32 	of reduced unemployment benefits is not a whole dollar, it is rounded down to the next 
99.33 	lower whole dollar.

99.34 	EFFECTIVE DATE. This section, except for subdivision 3, paragraph (a), clause 
99.35 	(2), is effective the day following final enactment. Subdivision 3, paragraph (a), clause (2), 
100.1 	is effective for unemployment benefits paid on or after January 1, 2006, regardless of when 
100.2 	the continued request was filed or the week for which the unemployment benefits are paid.

100.3 	Sec. 15. Minnesota Statutes 2007 Supplement, section 268.085, subdivision 9, is 
100.4 	amended to read:
100.5 		Subd. 9.Business owners. Wage credits from an employer may not be used for 
100.6 	unemployment benefit purposes by any applicant who:
100.7 	(1) individually, jointly, or in combination with the applicant's spouse, parent, or 
100.8 	child owns or controls directly or indirectly 25 percent or more interest in the employer,; or
100.9 	(2) is the spouse, parent, or minor child of any individual who owns or controls 
100.10 	directly or indirectly 25 percent or more interest in the employer; and.
100.11 	(2) is temporarily, seasonally, or indefinitely unemployed and not permanently 
100.12 	separated from the employment.
100.13 	This subdivision only applies if the applicant has been paid unemployment benefits 
100.14 	based upon wage credits from this employer within the prior four years and is effective 
100.15 	when the applicant has been paid four five times the applicant's weekly unemployment 
100.16 	benefit amount in the current benefit year.

100.17 	EFFECTIVE DATE. This section is effective July 6, 2008, and applies to 
100.18 	applications for unemployment benefits filed on or after that date.

100.19 	Sec. 16. Minnesota Statutes 2007 Supplement, section 268.085, subdivision 16, 
100.20 	is amended to read:
100.21 		Subd. 16.Actively seeking suitable employment defined. (a) "Actively seeking 
100.22 	suitable employment" means those reasonable, diligent efforts an individual in similar 
100.23 	circumstances would make if genuinely interested in obtaining suitable employment under 
100.24 	the existing conditions in the labor market area. Limiting the search to positions that are 
100.25 	not available or are above the applicant's training, experience, and qualifications is not 
100.26 	"actively seeking suitable employment."
100.27 	(b) To be considered "actively seeking suitable employment" an applicant must, 
100.28 	when reasonable, contact those employers from whom the applicant was laid off because 
100.29 	of lack of work and request suitable employment.
100.30 	(c) If reasonable prospects of suitable employment in the applicant's usual or 
100.31 	customary occupation do not exist, the applicant must actively seek other suitable 
100.32 	employment to be considered "actively seeking suitable employment." This applies to an 
100.33 	applicant who is seasonally unemployed.
101.1 	(d) An applicant who is seeking employment only through a union is not considered
101.2 	actively seeking suitable employment unless if the applicant is in an occupation where 
101.3 	it is required by union rule that all the hiring in that locality is done through the 
101.4 	union.or that all members areIf the applicant is a union member who is restricted 
101.5 	to obtaining employment among signatory contractors in the construction industry, 
101.6 	seeking employment only with those signatory contractors is considered actively seeking 
101.7 	employment. The applicant must be a union member in good standing, registered with 
101.8 	the union for employment, and in compliance with other union rules to be considered 
101.9 	"actively seeking suitable employment."

101.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

101.11 	Sec. 17. Minnesota Statutes 2006, section 268.125, subdivision 1, is amended to read:
101.12 		Subdivision 1.Additional unemployment benefits; when available. Additional 
101.13 	unemployment benefits are available if:
101.14 	(1) a county had a total unemployment rate for the prior 12-calendar month period of 
101.15 	at least 1.8 times the state average unemployment rate for the prior 12-calendar month 
101.16 	period and the state average unemployment rate for the same 12-calendar month period 
101.17 	was at least 4.6 percent. The commissioner must calculate the applicable unemployment 
101.18 	rates within 30 calendar days following the end of the month. Once it has been calculated 
101.19 	that the total unemployment rate in a county equals or exceeds 1.8 times the state average 
101.20 	unemployment rate for the prior 12-calendar month period, the additional benefits are 
101.21 	available beginning the Sunday following the date of calculation and continuing for a 
101.22 	minimum of 13 calendar weeks; or 
101.23 	(1)(2) (i) at a facility that had 100 or more employees, the employer reduced 
101.24 	operations, resulting within a one-month period in the layoff of 50 percent or more of the 
101.25 	facility's work force, including reductions caused as a result of a major natural disaster 
101.26 	declared by the president;
101.27 	(2)(ii) the employer has no expressed plan to resume operations that would lead to 
101.28 	the reemployment of those employees in the immediate future; and
101.29 	(3)(iii) the seasonally adjusted unemployment rate in the county that the facility 
101.30 	is located was ten percent or more during the month of the reduction or any of the three 
101.31 	months before or after the month of the reduction.

101.32 	EFFECTIVE DATE. This section is effective the day following final enactment 
101.33 	and applies retroactively from January 1, 2008.

102.1 	Sec. 18. Minnesota Statutes 2006, section 268.125, subdivision 2, is amended to read:
102.2 		Subd. 2.Payment of unemployment benefits from trust fund; effect on 
102.3 	employer. Additional unemployment benefits are payable from the trust fund. Additional 
102.4 	unemployment benefits paid will not be used in computing the experience rating of a 
102.5 	taxpaying employer nor charged to the reimbursing account of a nonprofit or government 
102.6 	employer.

102.7 	Sec. 19. Minnesota Statutes 2007 Supplement, section 268.125, subdivision 3, is 
102.8 	amended to read:
102.9 		Subd. 3.Eligibility conditions. An applicant is eligible to receive additional 
102.10 	unemployment benefits for any week during the applicant's benefit year if:
102.11 	(1) for any week during which benefits are available under subdivision 1, clause (1):
102.12 	(i) the applicant resides in a county that meets the requirements of subdivision 1, 
102.13 	clause (1), and resided in that county each week that regular unemployment benefits 
102.14 	were paid; 
102.15 	(ii) the applicant meets the same eligibility requirements that are required for regular 
102.16 	unemployment benefits under section 268.069; and 
102.17 	(iii) the applicant has exhausted regular unemployment benefits under section 
102.18 	268.07, is not entitled to receive extended unemployment benefits under section 268.115, 
102.19 	and is not entitled to receive unemployment benefits under any other state or federal 
102.20 	law for that week; or
102.21 	(1)(2) the applicant was laid off from employment as a result of a reduction under 
102.22 	subdivision 1, clause (2), or was laid off because of lack of work from that employer 
102.23 	during the three-month period before, or the three-month period after, the month of the 
102.24 	reduction under subdivision 1, clause (2);
102.25 	(2)(3) the applicant meets the same eligibility requirements that are required for 
102.26 	regular unemployment benefits under section 268.085 268.069; 
102.27 	(3) the applicant is not ineligible under section 268.095  because of a quit or a 
102.28 	discharge;
102.29 	(4) the applicant has exhausted regular unemployment benefits under section 268.07, 
102.30 	is not entitled to receive extended unemployment benefits under section 268.115, and 
102.31 	is not entitled to receive unemployment benefits under any other state or federal law 
102.32 	for that week; and 
102.33 	(5) a majority of the applicant's wage credits were from the employer that had a 
102.34 	reduction in operations under subdivision 1, clause (2).

103.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
103.2 	and applies retroactively from January 1, 2008.

103.3 	Sec. 20. Minnesota Statutes 2006, section 268.125, is amended by adding a subdivision 
103.4 	to read:
103.5 		Subd. 6.Notice. The commissioner must notify applicants of the availability 
103.6 	of additional unemployment benefits by contacting applicants by mail or electronic 
103.7 	transmission, by posting a notice on the department's official Web site, and by appropriate 
103.8 	announcement.

103.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

103.10 	Sec. 21. [268.232] UNEMPLOYMENT INSURANCE WORKER INITIATIVE.
103.11 		Subdivision 1.Purpose; set aside. The unemployment insurance workers initiative 
103.12 	is created to increase the number of staff at each workforce development center who are 
103.13 	available to provide services to unemployed workers seeking information, assistance, and 
103.14 	advice on applying for unemployment insurance benefits.
103.15 		Subd. 2.Tax reduction. Beginning January 1, 2009, the base unemployment tax 
103.16 	calculated under section 268.051, subdivision 2, paragraph (b), is reduced by .01 percent.
103.17 		Subd. 3.Fee suspension. Notwithstanding Minnesota Statutes, section 116L.20, the 
103.18 	special assessment under that section of .10 percent is suspended until December 31, 2011.
103.19 		Subd. 4.Workforce enhancement fee. A workforce enhancement fee of .11 
103.20 	percent on taxable wages as defined in section 268.035 subdivision 24, is assessed in 
103.21 	addition to unemployment taxes under section 268.051. The workforce enhancement fee 
103.22 	shall be paid on the same schedule and in the same manner as unemployment taxes under 
103.23 	section 268.051. Late payment of fees under this section is subject to the same interest and 
103.24 	penalty provisions as those that apply to unemployment taxes.
103.25 		Subd. 5.Use of funds. (a) Of the funds collected under this section an amount equal 
103.26 	to .01 percent on taxable wages must be deposited in the unemployment insurance worker 
103.27 	initiative account created under subdivision 6.
103.28 	(b) The remaining funds collected under this section must be deposited in the 
103.29 	workforce development fund under section 116L.20 minus reimbursement for costs under 
103.30 	section 116L.20, subdivision 2, paragraph (c).
103.31 		Subd. 6.Account. The unemployment insurance worker initiative account is 
103.32 	created as a special account in the special revenue fund in the state treasury. All funds 
103.33 	deposited under subdivision 5, paragraph (a), and any interest earnings on those funds 
103.34 	are appropriated to the commissioner to increase the amount of staff in the workforce 
104.1 	centers to provide assistance and support to applicants for unemployment insurance. 
104.2 	The commissioner shall give priority to providing sufficient staff in workforce centers 
104.3 	located outside of the seven county metropolitan area. Any funds that remain unexpended 
104.4 	in the first year are available for expenditure until December 31, 2011. Any unexpended 
104.5 	funds in this account after December 31, 2011 shall be transferred to the unemployment 
104.6 	insurance trust fund.
104.7 		Subd. 7.Report. Beginning in 2010 and every two years thereafter, the 
104.8 	commissioner shall report by January 15 to the standing committees of the senate and 
104.9 	house of representatives having jurisdiction over unemployment insurance on the number 
104.10 	of staff providing unemployment insurance assistance to applicants at each workforce 
104.11 	center, the salaries paid to staff, and the amount of unemployment benefits paid to 
104.12 	applicants who received unemployment insurance assistance at the workforce centers.
104.13 		Subd. 8.Sunset. Except for the reporting requirements under subdivision 7, this 
104.14 	section sunsets on December 31, 2011.

104.15 	EFFECTIVE DATE. This section is effective January 1, 2009.

104.16 	Sec. 22. Minnesota Statutes 2006, section 298.2214, subdivision 1, is amended to read:
104.17 		Subdivision 1.Creation of committee; purpose. A committee is created to advise 
104.18 	the commissioner of Iron Range resources and rehabilitation board on providing higher 
104.19 	education programs in cooperation with the University of Minnesota, the Minnesota State 
104.20 	Colleges and Universities, and private colleges in the taconite assistance area defined in 
104.21 	section 273.1341. The committee is subject to section 15.059. 

104.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

104.23 	Sec. 23. Minnesota Statutes 2006, section 298.2214, subdivision 2, as amended by 
104.24 	Laws 2008, chapter 154, article 8, section 4, is amended to read:
104.25 		Subd. 2. Iron Range Higher Education Committee; membership. The members 
104.26 	of the committee shall consist of: 
104.27 	(1) one member appointed by the governor; 
104.28 	(2) one member appointed by the president of the University of Minnesota; 
104.29 	(3) four members of the Iron Range Resources and Rehabilitation Board appointed 
104.30 	by the chair; 
104.31 	(4) the commissioner of Iron Range resources and rehabilitation one member 
104.32 	appointed by the chancellor of the Minnesota State Colleges and Universities; and 
104.33 	(5) the president of the Northeast Higher Education District or its successor.

105.1 	EFFECTIVE DATE. This section is effective the day following final enactment. 

105.2 	Sec. 24. Minnesota Statutes 2006, section 298.223, subdivision 2, is amended to read:
105.3 		Subd. 2.Administration. (a) The taconite area environmental protection fund shall 
105.4 	be administered by the commissioner of the Iron Range Resources and Rehabilitation 
105.5 	Board. The commissioner shall by September 1 of each year submit to the board a list 
105.6 	of projects to be funded from the taconite area environmental protection fund, with such 
105.7 	supporting information including description of the projects, plans, and cost estimates as 
105.8 	may be necessary. 
105.9 	(b) Each year no less than one-half of the amounts deposited into the taconite 
105.10 	environmental protection fund must be used for public works projects, including 
105.11 	construction of sewer and water systems, as specified under subdivision 1, paragraph (c). 
105.12 	The Iron Range Resources and Rehabilitation Board with a majority vote of the members, 
105.13 	may waive the requirements of this paragraph. 
105.14 	(c) Upon approval by a majority of the members of the Iron Range Resources and 
105.15 	Rehabilitation Board, thisthe list of projects approved under this subdivision shall be 
105.16 	submitted to the governor by November 1 of each year. By December 1 of each year, the 
105.17 	governor shall approve or disapprove, or return for further consideration, each project. 
105.18 	Funds for a project may be expended only upon approval of the project by the board and 
105.19 	governor. The commissioner may submit supplemental projects to the board and governor 
105.20 	for approval at any time.

105.21 	EFFECTIVE DATE. This section is effective for distributions beginning in 2009.

105.22 	Sec. 25. Minnesota Statutes 2007 Supplement, section 298.227, is amended to read:
105.23 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
105.24 	For distributions prior to January 1, 2009, an amount equal to that distributed 
105.25 	pursuant to each taconite producer's taxable production and qualifying sales under section 
105.26 	298.28, subdivision 9a, shall be held by the Iron Range Resources and Rehabilitation 
105.27 	Board in a separate taconite economic development fund for each taconite and direct 
105.28 	reduced ore producer. Money from the fund for each producer shall be released by 
105.29 	the commissioner after review by a joint committee consisting of an equal number of 
105.30 	representatives of the salaried employees and the nonsalaried production and maintenance 
105.31 	employees of that producer. The District 11 director of the United States Steelworkers of 
105.32 	America, on advice of each local employee president, shall select the employee members. 
105.33 	In nonorganized operations, the employee committee shall be elected by the nonsalaried 
106.1 	production and maintenance employees. The review must be completed no later than 
106.2 	six months after the producer presents a proposal for expenditure of the funds to the 
106.3 	committee. The funds held pursuant to this section may be released only for acquisition 
106.4 	of plant and stationary mining equipment and facilities for the producer or for research 
106.5 	and development in Minnesota on new mining, or taconite, iron, or steel production 
106.6 	technology, but only if the producer provides a matching expenditure to be used for 
106.7 	the same purpose of at least 50 percent of the distribution based on 14.7 cents per ton 
106.8 	beginning with distributions in 2002. Effective for proposals for expenditures of money 
106.9 	from the fund beginning May 26, 2007, the commissioner may not release the funds before 
106.10 	the next scheduled meeting of the board. If the board rejects a proposed expenditure, the 
106.11 	funds must be deposited in the Taconite Environmental Protection Fund under sections 
106.12 	298.222 to 298.225. If a producer uses money which has been released from the fund 
106.13 	prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, 
106.14 	and the producer removes the piece of equipment from the taconite tax relief area defined 
106.15 	in section 273.134 within ten years from the date of receipt of the money from the fund, 
106.16 	a portion of the money granted from the fund must be repaid to the taconite economic 
106.17 	development fund. The portion of the money to be repaid is 100 percent of the grant if the 
106.18 	equipment is removed from the taconite tax relief area within 12 months after receipt of 
106.19 	the money from the fund, declining by ten percent for each of the subsequent nine years 
106.20 	during which the equipment remains within the taconite tax relief area. If a taconite 
106.21 	production facility is sold after operations at the facility had ceased, any money remaining 
106.22 	in the fund for the former producer may be released to the purchaser of the facility on 
106.23 	the terms otherwise applicable to the former producer under this section. If a producer 
106.24 	fails to provide matching funds for a proposed expenditure within six months after the 
106.25 	commissioner approves release of the funds, the funds are available for release to another 
106.26 	producer in proportion to the distribution provided and under the conditions of this section. 
106.27 	Any portion of the fund which is not released by the commissioner within two years of its 
106.28 	deposit in the fund shall be divided between the taconite environmental protection fund 
106.29 	created in section 298.223 and the Douglas J. Johnson economic protection trust fund 
106.30 	created in section 298.292 for placement in their respective special accounts. Two-thirds 
106.31 	of the unreleased funds shall be distributed to the taconite environmental protection fund 
106.32 	and one-third to the Douglas J. Johnson economic protection trust fund. 

106.33 	Sec. 26. Minnesota Statutes 2006, section 298.28, subdivision 9b, is amended to read:
106.34 		Subd. 9b.Taconite environmental fund. FiveEight cents per ton must be paid to 
106.35 	the taconite environmental fund for use under section 298.2961, subdivision 4.

107.1 	EFFECTIVE DATE. This section is effective for production in 2008, distributions 
107.2 	in 2009 and thereafter.

107.3 	Sec. 27. Minnesota Statutes 2006, section 298.28, subdivision 9d, as added by Laws 
107.4 	2008, chapter 154, article 8, section 9, is amended to read:
107.5 		Subd. 9d. Iron Range higher education account. TwoFive cents per taxable ton 
107.6 	must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited 
107.7 	in an Iron Range higher education account that is hereby created, to be used for higher 
107.8 	education programs conducted at educational institutions in the taconite assistance area 
107.9 	defined in section 273.1341. The Iron Range Higher Education committee under section 
107.10 	298.2214 and the Iron Range Resources and Rehabilitation Board must approve all 
107.11 	expenditures from the account. 

107.12 	Sec. 28. Minnesota Statutes 2006, section 298.292, subdivision 2, as amended by Laws 
107.13 	2008, chapter 154, article 8, section 11, is amended to read:
107.14 		Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust 
107.15 	fund may be used for the following purposes: 
107.16 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of 
107.17 	participation with private sources of financing, but a loan to a private enterprise shall be 
107.18 	for a principal amount not to exceed one-half of the cost of the project for which financing 
107.19 	is sought, and the rate of interest on a loan to a private enterprise shall be no less than the 
107.20 	lesser of eight percent or an interest rate three percentage points less than a full faith 
107.21 	and credit obligation of the United States government of comparable maturity, at the 
107.22 	time that the loan is approved; 
107.23 	(2) to fund reserve accounts established to secure the payment when due of the 
107.24 	principal of and interest on bonds issued pursuant to section 298.2211; 
107.25 	(3) to pay in periodic payments or in a lump sum payment any or all of the interest 
107.26 	on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, 
107.27 	or retrofitting heating facilities in connection with district heating systems or systems 
107.28 	utilizing alternative energy sources; 
107.29 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
107.30 	entities that are engaging in, or that will engage in, projects or programs that have the 
107.31 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
107.32 	or enterprise unless at least two other unrelated investors make investments of at least 
107.33 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas 
107.34 	J. Johnson economic protection trust fund may not exceed the amount of the largest 
108.1 	investment by an unrelated investor in the venture capital fund or enterprise. For purposes 
108.2 	of this subdivision, an "unrelated investor" is a person or entity that is not related to 
108.3 	the entity in which the investment is made or to any individual who owns more than 40 
108.4 	percent of the value of the entity, in any of the following relationships: spouse, parent, 
108.5 	child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of 
108.6 	the value of all interests in it. For purposes of determining the limitations under this 
108.7 	clause, the amount of investments made by an investor other than the Douglas J. Johnson 
108.8 	economic protection trust fund is the sum of all investments made in the venture capital 
108.9 	fund or enterprise during the period beginning one year before the date of the investment 
108.10 	by the Douglas J. Johnson economic protection trust fund; and 
108.11 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341
108.12 	to be held and managed as a public trust for the benefit of the area for the purposes 
108.13 	authorized in section 298.22, subdivision 5a. Property purchased under this section may 
108.14 	be sold upon approval by a majority vote of the board. The net proceeds must be deposited 
108.15 	in the trust fund for the purposes and uses of this section.
108.16 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
108.17 	assistance area defined in section 273.1341. 

108.18 	Sec. 29. Minnesota Statutes 2006, section 298.2961, subdivision 2, is amended to read:
108.19 		Subd. 2.Projects; approval. (a) Projects funded must be for:
108.20 	(1) environmentally unique reclamation projects; or
108.21 	(2) pit or plant repairs, expansions, or modernizations other than for a value added 
108.22 	iron products plant; or.
108.23 	(3) haulage trucks and equipment and mining shovels.
108.24 	(b) To be proposed by the board, a project must be approved by at least eight Iron 
108.25 	Range Resources and Rehabilitation Board members. The money for a project may 
108.26 	be spent only upon approval of the project by the governor. The board may submit 
108.27 	supplemental projects for approval at any time.
108.28 	(c) The board may require that it receive an equity percentage in any project to 
108.29 	which it contributes under this section.

108.30 	Sec. 30. Minnesota Statutes 2006, section 341.21, as amended by Laws 2007, chapter 
108.31 	135, article 3, section 30, is amended to read:
108.32 	341.21 DEFINITIONS.
108.33 		Subdivision 1.Applicability. The definitions in this section apply to this chapter.
109.1 		Subd. 2.Boxing. "Boxing" means the act of attack and defense with the fists, using 
109.2 	padded gloves, that is practiced as a sport under the rules of the Association of Boxing 
109.3 	Commissions, or equivalent. Where applicable, boxing includes tough person contests.
109.4 		Subd. 2a.Combatant. "Combatant" means an individual who employs the act of 
109.5 	attack and defense as a boxer, tough person, or mixed martial artist while engaged in 
109.6 	a combative sport.
109.7 		Subd. 2b.Combative sport. "Combative sport" means a sport that employs the act 
109.8 	of attack and defense with the fists, with or without using padded gloves, or feet that is 
109.9 	practiced as a sport under the rules of the Association of Boxing Commissions, unified 
109.10 	rules for mixed martial arts, or their equivalent. Combative sports include professional 
109.11 	boxing and professional and amateur tough person and professional and amateur mixed 
109.12 	martial arts contests.
109.13 		Subd. 3.Commission. "Commission" means the Minnesota BoxingCombative 
109.14 	Sports Commission.
109.15 		Subd. 4.Combative sports contest. "Combative sports contest" means any a 
109.16 	professional boxing, a professional or amateur tough person, or a professional or amateur 
109.17 	mixed martial art bout, competitioncontest, match, or exhibition.
109.18 		Subd. 4a.Director. "Director" means the executive director of the commission.
109.19 		Subd. 4b.HBV. "HBV" means the hepatitis B virus with the e-antigen present in 
109.20 	the most recent blood test.
109.21 		Subd. 4c.HCV. "HCV" means the hepatitis C virus.
109.22 		Subd. 4d.HIV. "HIV" means the human immunodeficiency virus.
109.23 		Subd. 4e.Individual. "Individual" means a living human being.
109.24 		Subd. 4f.Mixed martial arts contest. "Mixed martial arts contest" means a contest 
109.25 	between two or more individuals consisting of any combination of full contact martial art 
109.26 	including, but not limited to, Muay Thai and Karate, kickboxing, wrestling, grappling, 
109.27 	or other recognized martial art.
109.28 		Subd. 4g.Person. "Person" means an individual, corporation, partnership, limited 
109.29 	liability company, organization, or other business entity organized and existing under law, 
109.30 	its officers and directors, or a person holding 25 percent or more of the ownership of a 
109.31 	corporation that is authorized to do business under the laws of this state.
109.32 		Subd. 5.Professional. "Professional" means any person who competes for any 
109.33 	money prize or a prize that exceeds the value of $50 or teaches, pursues, or assists in the 
109.34 	practice of boxing a combative sport  as a means of obtaining a livelihood or pecuniary 
109.35 	gain.
109.36 		Subd. 6.Director. "Director" means the executive director of the commission.
110.1 		Subd. 7.Tough person contest. "Tough person contest," including contests 
110.2 	marketed as tough man and or tough woman contests, means any boxing match consisting
110.3 	a contest of one-minute rounds two-minute rounds consisting of not more than four rounds
110.4 	between two or more persons individuals who use their hands, or their feet, or both, in any 
110.5 	manner. Tough person contest does not include kick boxing kickboxing or any recognized 
110.6 	martial arts competition contest.
110.7 		Subd. 8.Mixed martial arts. "Mixed martial arts" means any combination of 
110.8 	boxing, kick boxing, wrestling, grappling, or other recognized martial arts.

110.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

110.10 	Sec. 31. Minnesota Statutes 2007 Supplement, section 341.22, is amended to read:
110.11 	341.22 BOXING COMBATIVE SPORTS COMMISSION.
110.12 	There is hereby created the Minnesota Boxing Combative Sports Commission 
110.13 	consisting of nine members who are citizens of this state. The members must be appointed 
110.14 	by the governor. One member of the commission must be a retired judge of the Minnesota 
110.15 	district court, Minnesota Court of Appeals, Minnesota Supreme Court, the United States 
110.16 	District Court for the District of Minnesota, or the Eighth Circuit Court of Appeals, and 
110.17 	at least three four members must have knowledge of the boxing industry. At least four 
110.18 	members must have knowledge of the mixed martial arts industry. The governor shall 
110.19 	make serious efforts to appoint qualified women to serve on the commission. Membership 
110.20 	terms, compensation of members, removal of members, the filling of membership 
110.21 	vacancies, and fiscal year and reporting requirements must be as provided in sections 
110.22 	214.07 to 214.09. Unless otherwise provided, the provision of staff, administrative 
110.23 	services, and office space; the review and processing of complaints; the setting of fees; and 
110.24 	other provisions relating to commission operations must be are as provided in chapter 214. 
110.25 	The purpose of the commission is to protect health, promote safety, and ensure fair events. 

110.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

110.27 	Sec. 32. Minnesota Statutes 2006, section 341.23, is amended to read:
110.28 	341.23 LIMITATIONS.
110.29 	No member of the Boxing commission may directly or indirectly promote a boxing
110.30 	contest, directly or indirectly engage in the managing of a boxer combatant, or have an 
110.31 	interest in any manner in the proceeds from a boxing combative sport contest.

110.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

111.1 	Sec. 33. Minnesota Statutes 2007 Supplement, section 341.25, is amended to read:
111.2 	341.25 RULES.
111.3 	(a) The commission may adopt rules that include standards for the physical 
111.4 	examination and condition of boxers combatants and referees. Notwithstanding section 
111.5 	14.125, the commission shall publish a notice of intent to adopt rules or a notice of hearing 
111.6 	on or before September 1, 2008.
111.7 	(b) The commission may adopt other rules necessary to carry out the purposes 
111.8 	of this chapter, including, but not limited to, the conduct of boxing exhibitions, bouts, 
111.9 	and fights, all combative sport contests and their manner, supervision, time, and place.
111.10 	Notwithstanding section 14.125, the commission shall publish a notice of intent to adopt 
111.11 	rules or a notice of hearing on or before September 1, 2008.
111.12 	(c) The commission must adopt unified rules for mixed martial arts contests.
111.13 	(d) The commission may adopt the rules of the Association of Boxing Commissions, 
111.14 	with amendments.

111.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

111.16 	Sec. 34. Minnesota Statutes 2006, section 341.26, is amended to read:
111.17 	341.26 MEETINGS.
111.18 	The commission shall hold a regular meeting quarterly and may hold special 
111.19 	meetings. Except as otherwise provided in law, all meetings of the commission must be 
111.20 	open to the public and reasonable notice of the meetings must be given under chapter 
111.21 	13D. If compliance with section 13D.02 is impractical, the commission may conduct a 
111.22 	meeting of its members by telephone or other electronic means so long as the following 
111.23 	conditions are met:
111.24 	(1) all members of the commission participating in the meeting, wherever their 
111.25 	physical location, can hear one another and can hear all discussion and testimony;
111.26 	(2) members of the public present at the regular meeting location of the commission 
111.27 	can hear clearly all discussion and testimony and all votes of members of the commission 
111.28 	and, if needed, receive those services required by sections 15.44 and 15.441;
111.29 	(3) at least one member of the commission is physically present at the regular 
111.30 	meeting location; and
111.31 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
111.32 	identified and recorded.
112.1 	Each member of the commission participating in a meeting by telephone or other 
112.2 	electronic means is considered present at the meeting for purposes of determining a 
112.3 	quorum and participating in all proceedings.
112.4 	If a telephone or other electronic means is used to conduct a regular, special, or 
112.5 	emergency meeting, the commission, to the extent practical, shall allow a person to 
112.6 	monitor the meeting electronically from a remote location. The commission may require 
112.7 	the person making such a connection to pay for documented costs that the commission 
112.8 	incurs as a result of the additional connection.
112.9 	If a telephone or other electronic means is used to conduct a regular, special, or 
112.10 	emergency meeting, the commission shall provide notice of the regular meeting location, 
112.11 	of the fact that some members may participate by telephone or other electronic means, and 
112.12 	that a person may monitor the meeting electronically from a remote location. The timing 
112.13 	and method of providing notice is governed by section 13D.04.

112.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

112.15 	Sec. 35. Minnesota Statutes 2007 Supplement, section 341.27, is amended to read:
112.16 	341.27 COMMISSION DUTIES.
112.17 	The commission shall:
112.18 	(1) issue, deny, renew, suspend, or revoke licenses;
112.19 	(2) make and maintain records of its acts and proceedings including the issuance, 
112.20 	denial, renewal, suspension, or revocation of licenses;
112.21 	(3) keep public records of the commission open to inspection at all reasonable times;
112.22 	(4) assist the director in the development of rules to be implemented under this 
112.23 	chapter; 
112.24 	(5) conform to the rules adopted under this chapter; and
112.25 	(6) develop policies and procedures for regulating mixed martial arts.;
112.26 	(7) immediately suspend an individual license for a medical condition, including but 
112.27 	not limited to a medical condition resulting from an injury sustained during a match, bout, 
112.28 	or contest that has been confirmed by the ringside physician. The medical suspension must 
112.29 	be lifted after the commission receives written information from a physician licensed in 
112.30 	the home state of the licensee indicating that the combatant may resume competition, and 
112.31 	any other information that the commission may by rule require. Medical suspensions are 
112.32 	not subject to section 214.10; and
112.33 	(8) evaluate the performance and compensation of the director, including eligibility 
112.34 	for salary increases, in keeping with state procedures.

113.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.2 	Sec. 36. [341.271] GIFT AUTHORITY.
113.3 	The commission may apply for, receive, and expend in its own name grants and 
113.4 	gifts of money consistent with the powers and duties specified in section 341.27. The 
113.5 	commission may accept gifts, bequests, grants, payments for services, and other public 
113.6 	and private money to help finance the activities of the commission.

113.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.8 	Sec. 37. Minnesota Statutes 2006, section 341.28, as amended by Laws 2007, chapter 
113.9 	135, article 3, sections 34, 35, is amended to read:
113.10 	341.28 REGULATION OF BOXING COMBATIVE SPORT  CONTESTS.
113.11 		Subdivision 1.Regulatory authority; boxing combative sports. All professional 
113.12 	boxing combative sport contests are subject to this chapter. Every contestant in a boxing 
113.13 	contest shall wear padded gloves that weigh at least eight ounces. The commission shall, 
113.14 	for every boxing combative sport contest:
113.15 	(1) direct a commission member to be present; and
113.16 	(2) direct the attending commission member to make a written report of the contest.
113.17 	All boxing combative sport contests within this state must be conducted according to 
113.18 	the requirements of this chapter.
113.19 		Subd. 1a.Regulatory authority; boxing contests. All professional boxing contests 
113.20 	are subject to this chapter. Every combatant in a boxing contest shall wear padded gloves 
113.21 	that weigh at least eight ounces. Officials at all boxing contests must be licensed under 
113.22 	this chapter.
113.23 		Subd. 2.Regulatory authority; tough person contests. All professional and 
113.24 	amateur tough person contests, including amateur tough person contests, are subject to 
113.25 	this chapter. All tough person contests are subject to American Association of Boxing 
113.26 	Commission (ABC) Commissions rules. Every contestant in a tough person contest shall 
113.27 	have a physical examination prior to their bouts. Every contestant in a tough person 
113.28 	contest shall wear padded gloves that weigh at least 12 ounces. All tough person bouts are 
113.29 	limited to two-minute rounds and a maximum of four total rounds. Officials at all tough 
113.30 	person bouts contests shall be licensed under this chapter.
113.31 		Subd. 3.Regulatory authority; mixed martial arts contests; similar sporting 
113.32 	events. All professional and amateur mixed martial arts, ultimate fight contests, and 
114.1 	similar sporting events are subject to this chapter and all officials at these events must be 
114.2 	licensed under this chapter.

114.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.4 	Sec. 38. Minnesota Statutes 2006, section 341.29, is amended to read:
114.5 	341.29 JURISDICTION OF COMMISSION.
114.6 	The commission shall:
114.7 	(1) have sole direction, supervision, regulation, control, and jurisdiction over all 
114.8 	boxing combative sports contests and tough person contests that are held within this state 
114.9 	unless a contest is exempt from the application of this chapter under federal law;
114.10 	(2) have sole control, authority, and jurisdiction over all licenses required by this 
114.11 	chapter; and 
114.12 	(3) grant a license to an applicant if, in the judgment of the commission, the financial 
114.13 	responsibility, experience, character, and general fitness of the applicant are consistent 
114.14 	with the public interest, convenience, or necessity and the best interests of boxing
114.15 	combative sports and conforms with this chapter and the commission's rules.

114.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.17 	Sec. 39. Minnesota Statutes 2006, section 341.30, is amended to read:
114.18 	341.30 LICENSURE REQUIREMENTS.
114.19 		Subdivision 1.Licensure; individuals. All referees, judges, matchmakers, 
114.20 	promoters, trainers, ring announcers, timekeepers, ringside physicians, boxers combatants, 
114.21 	boxers' managers, and boxers' seconds are required to be licensed by the commission. The 
114.22 	commission shall not permit any of these persons to participate in the holding or conduct 
114.23 	of any boxing combative sport contest unless the commission has first issued the person 
114.24 	a license.
114.25 		Subd. 2.Entity licensure. Before participating in the holding or conduct of any 
114.26 	boxing combative sport  contest, a corporation, partnership, limited liability company, or 
114.27 	other business entity organized and existing under law, its officers and directors, and 
114.28 	any person holding 25 percent or more of the ownership of the corporation shall obtain 
114.29 	a license from the commission and must be authorized to do business under the laws of 
114.30 	this state.
114.31 		Subd. 3.Background investigation. The commission may require referees, judges, 
114.32 	matchmakers, promoters, and boxers combatants to furnish fingerprints and background 
114.33 	information under commission rules before licensure. The commission shall charge a fee 
115.1 	for receiving fingerprints and background information in an amount determined by the 
115.2 	commission. The commission may require referees, judges, matchmakers, promoters, 
115.3 	and boxers combatants to furnish fingerprints and background information before 
115.4 	license renewal. The fee may include a reasonable charge for expenses incurred by the 
115.5 	commission or the Department of Public Safety. For this purpose, the commission and the 
115.6 	Department of Public Safety may enter into an interagency agreement.
115.7 		Subd. 4.Prelicensure requirements. (a) Before the commission issues a license to 
115.8 	a promoter, matchmaker, corporation, or other business entity, the applicant shall:
115.9 	(1) provide the commission with a copy of any agreement between a contestant
115.10 	combatant and the applicant that binds the applicant to pay the contestant combatant a 
115.11 	certain fixed fee or percentage of the gate receipts;
115.12 	(2) show on the application the owner or owners of the applicant entity and the 
115.13 	percentage of interest held by each owner holding a 25 percent or more interest in the 
115.14 	applicant;
115.15 	(3) provide the commission with a copy of the latest financial statement of the 
115.16 	entity; and
115.17 	(4) provide the commission with a copy or other proof acceptable to the commission 
115.18 	of the insurance contract or policy required by this chapter.
115.19 	(b) Before the commission issues a license to a promoter, the applicant shall deposit 
115.20 	with the commission a cash bond or surety bond in an amount set by the commission. 
115.21 	The bond shall be executed in favor of this state and shall be conditioned on the faithful 
115.22 	performance by the promoter of the promoter's obligations under this chapter and the rules 
115.23 	adopted under it. An applicant for a license as a promoter shall submit an application a 
115.24 	minimum of six weeks before the combative sport contest is scheduled to occur.
115.25 	(c) Before the commission issues a license to a boxer combatant, the applicant 
115.26 	shall submit to the commission the results of a current medical examination on forms 
115.27 	furnished or approved by the commission. The medical examination must include an 
115.28 	ophthalmological and neurological examination, and documentation of test results for 
115.29 	HBV, HCV, and HIV, and any other blood test as the commission by rule may require. 
115.30 	The ophthalmological examination must be designed to detect any retinal defects or other 
115.31 	damage or condition of the eye that could be aggravated by boxing combative sports. The 
115.32 	neurological examination must include an electroencephalogram or medically superior 
115.33 	test if the boxer combatant  has been knocked unconscious in a previous boxing or other 
115.34 	athletic competition contest. The commission may also order an electroencephalogram 
115.35 	or other appropriate neurological or physical examination before any contest, match, or 
115.36 	exhibition if it determines that the examination is desirable to protect the health of the 
116.1 	boxer. combatant. The commission shall not issue a license to an applicant submitting 
116.2 	positive test results for HBV, HCV, or HIV.

116.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

116.4 	Sec. 40. Minnesota Statutes 2006, section 341.32, as amended by Laws 2007, chapter 
116.5 	135, article 3, section 36, is amended to read:
116.6 	341.32 LICENSE FEES; EXPIRATION; RENEWAL.
116.7 		Subdivision 1.Annual licensure. The commission may establish and issue annual 
116.8 	licenses subject to the collection of advance fees by the commission for promoters, 
116.9 	matchmakers, managers, judges, referees, ring announcers, ringside physicians, 
116.10 	timekeepers, boxers combatants,  boxers' trainers, boxers' seconds, business entities filing 
116.11 	for a license to participate in the holding of any boxing contest, and officers, directors, or 
116.12 	other persons affiliated with the business entity.
116.13 		Subd. 2.Expiration and renewal. A license issued after July 1, 2007, is valid for 
116.14 	one year from the date it is issued and may be renewed by filing an application for renewal 
116.15 	with the commission and payment of the license fee fees established in section 341.321. 
116.16 	An application for a license and renewal of a license must be on a form provided by the 
116.17 	commission. There is a 30-day grace period during which a license may be renewed if a 
116.18 	late filing penalty fee equal to the license fee is submitted with the regular license fee. 
116.19 	A licensee that files late shall not conduct any activity regulated by this chapter until the 
116.20 	commission has renewed the license. If the licensee fails to apply to the commission within 
116.21 	the 30-day grace period, the licensee must apply for a new license under subdivision 1.

116.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

116.23 	Sec. 41. Minnesota Statutes 2007 Supplement, section 341.321, is amended to read:
116.24 	341.321 FEE SCHEDULE.
116.25 	(a) The fee schedule for professional licenses issued by the Minnesota Boxing
116.26 	commission is as follows: 
116.27 	(1) referees, $45 $25 for each initial license and each renewal; 
116.28 	(2) promoters, $400 for each initial license and each renewal; 
116.29 	(3) judges and knockdown judges, $45 $25 for each initial license and each renewal; 
116.30 	(4) trainers, $45 $25 for each initial license and each renewal; 
116.31 	(5) ring announcers, $45 $25 for each initial license and each renewal; 
116.32 	(6) boxers' seconds, $45 $25 for each initial license and each renewal; 
116.33 	(7) timekeepers, $45 $25 for each initial license and each renewal; 
117.1 	(8) boxers combatant, $45 $25 for each initial license and each renewal;
117.2 	(9) managers, $45 $25 for each initial license and each renewal; and
117.3 	(10) ringside physicians, $45 $25 for each initial license and each renewal.
117.4 	In addition to the license fee and the late filing penalty fee in section 341.32, subdivision 
117.5 	2, if applicable, an individual who applies for a combatant license on the same day the 
117.6 	combative sporting event is held shall pay a fee of $100 at the time the application is 
117.7 	submitted.
117.8 	(b) The fee schedule for amateur licenses issued by the commission is as follows:
117.9 	(1) referees, $10 for each initial license and each renewal;
117.10 	(2) promoters, $100 for each initial license and each renewal;
117.11 	(3) judges and knockdown judges, $10 for each initial license and each renewal;
117.12 	(4) trainers, $10 for each initial license and each renewal;
117.13 	(5) ring announcers, $10 for each initial license and each renewal;
117.14 	(6) seconds, $10 for each initial license and each renewal;
117.15 	(7) timekeepers, $10 for each initial license and each renewal;
117.16 	(8) combatant, $10 for each initial license and each renewal;
117.17 	(9) managers, $10 for each initial license and each renewal; and
117.18 	(10) ringside physicians, $10 for each initial license and each renewal.
117.19 	(c) The commission shall establish and assess an event a contest fee for each sporting 
117.20 	event combative sport contest. The event contest fee is set at a minimum of $1,500 per 
117.21 	event or a percentage not more than four percent of the gross ticket sales as determined by 
117.22 	the commission when the sporting event combative sport contest is scheduled, except that 
117.23 	the amateur combative sport contest fee shall be $150. The commission shall consider the 
117.24 	size and type of venue when establishing a contest fee. The commission may establish the 
117.25 	maximum number of complimentary tickets allowed for each event by rule. An amateur 
117.26 	combative sport contest fee is nonrefundable.
117.27 	(c) (d) All fees collected by the Minnesota Boxing commission must be deposited in 
117.28 	the Boxing commission account in the special revenue fund. 

117.29 	EFFECTIVE DATE. This section is effective July 1, 2008.

117.30 	Sec. 42. Minnesota Statutes 2006, section 341.33, is amended to read:
117.31 	341.33 PHYSICAL EXAMINATION REQUIRED; FEES.
117.32 		Subdivision 1.Examination by physician. All boxers and referees combatants
117.33 	must be examined by a physician licensed by this state within three 36 hours before 
117.34 	entering the ring, and the examining physician shall immediately file with the commission 
118.1 	a written report of the examination. The physician's examination shall may report on the 
118.2 	condition of the boxer's combatant's heart and general physical and general neurological 
118.3 	condition. The physician's report may record the condition of the boxer's combatant's
118.4 	nervous system and brain as required by the commission. The physician may prohibit the 
118.5 	boxer combatant from entering the ring if, in the physician's professional opinion, it is in 
118.6 	the best interest of the boxer's combatant's health. The cost of the examination is payable 
118.7 	by the person or entity conducting the contest or exhibition.
118.8 		Subd. 2.Attendance of physician. A person holding or sponsoring a boxing contest
118.9 	combative sport contest, shall have in attendance a physician licensed by this state. The 
118.10 	commission may establish a schedule of fees to be paid to each attending physician by the 
118.11 	person holding or sponsoring the contest.

118.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.13 	Sec. 43. Minnesota Statutes 2006, section 341.34, subdivision 1, is amended to read:
118.14 		Subdivision 1.Required insurance. The commission shall:
118.15 	(1) require insurance coverage for a boxer combatant  to provide for medical, 
118.16 	surgical, and hospital care for injuries sustained in the ring in an amount of at least 
118.17 	$20,000 $10,000 and payable to the boxer combatant  as beneficiary; and
118.18 	(2) require life insurance for a boxer combatant  in the amount of at least $20,000
118.19 	$10,000 payable in case of accidental death resulting from injuries sustained in the ring.

118.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.21 	Sec. 44. Minnesota Statutes 2006, section 341.35, is amended to read:
118.22 	341.35 PENALTIES FOR NONLICENSED EXHIBITIONS CONTESTS.
118.23 	Any person or persons who send or cause to be sent, published, or otherwise made 
118.24 	known, any challenge to fight what is commonly known as a prize fight, or engage in any 
118.25 	public boxing or sparring combative sport match or contest, with or without gloves, for 
118.26 	any prize, reward, or compensation, or for which any admission fee is charged directly or 
118.27 	indirectly, or go into training preparatory for the fight, exhibition, or contest, or act as a 
118.28 	trainer, aider, abettor, backer, umpire, referee, second, surgeon, assistant, or attendant at 
118.29 	the fight, exhibition, or contest, or in any preparation for same, and any owner or lessee of 
118.30 	any ground, building, or structure of any kind permitting the same to be used for any fight, 
118.31 	exhibition, or contest, is guilty of a misdemeanor unless a license the licenses required for 
118.32 	the holding of the fight, exhibition, or contest has have been issued by the commission in 
118.33 	compliance with the rules adopted by it.

119.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.2 	Sec. 45. [341.355] PENALTIES.
119.3 	When the commission finds that a person has violated one or more provisions of 
119.4 	any statute, rule, or order that the commission is empowered to regulate, enforce, or 
119.5 	issue, the commission may impose, for each violation, a civil penalty of up to $10,000 
119.6 	for each violation, or a civil penalty that deprives the person of any economic advantage 
119.7 	gained by the violation, or both.

119.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.9 	Sec. 46. Minnesota Statutes 2006, section 341.37, is amended to read:
119.10 	341.37 APPROPRIATION.
119.11 	A Boxing commission account is created in the special revenue fund. Money in the 
119.12 	account is annually appropriated to the Boxing commission for the purposes of conducting 
119.13 	its statutory responsibilities and obligations.

119.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.15 	Sec. 47. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 3, 
119.16 	is amended to read:
119.17 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
119.18 	assistance, as provided in subdivision 5a to  governmental units:
119.19 	(1) whose projects are listed on the Pollution Control Agency's project priority list;
119.20 	(2) that demonstrate their projects are a cost-effective solution to an existing 
119.21 	environmental or public health problem; and
119.22 	(3) whose projects are approved by the USDA/RECD or certified by the 
119.23 	commissioner of the Pollution Control Agency.
119.24 	(b) For a  governmental unit receiving grant funding from the USDA/RECD, 
119.25 	applications must be made to the USDA/RECD with additional information submitted to 
119.26 	the authority as required by the authority. Eligible project costs and affordability criteria 
119.27 	shall be determined by the USDA/RECD.
119.28 	(c) For a  governmental unit not receiving grant funding from the USDA/RECD, 
119.29 	application must be made to the authority on forms prescribed by the authority for the 
119.30 	clean water revolving fund program with additional information as required by the 
119.31 	authority. In accordance with section 116.182, the Pollution Control Agency shall: 
120.1 	(1) calculate the essential project component percentage which must be multiplied 
120.2 	by the total project cost to determine the eligible project cost; and
120.3 	(2) review and certify approved projects to the authority.
120.4 	(d) At the time funds are appropriated under this section, Each fiscal year the 
120.5 	authority shall make funds available for projects based on their ranking on the Pollution 
120.6 	Control Agency's project priority list. The authority shall reserve supplemental assistance
120.7 	funds for projects in order of their rankings on the Pollution Control Agency's project 
120.8 	priority list and a project when the applicant receives a funding commitment from the 
120.9 	United States Department of Agriculture Rural Development (USDA/RECD) or submits 
120.10 	plans and specifications to the Pollution Control Agency. Funds must be reserved in an 
120.11 	amount based on their most recent the project cost estimates estimate submitted to the 
120.12 	authority orprior to the appropriation of the funds and awarded in the amount reserved 
120.13 	or an amount based on the as-bid costs, whichever is less.

120.14 	Sec. 48. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 5a, 
120.15 	is amended to read:
120.16 		Subd. 5a.Type and amount of assistance. (a) For a  governmental unit receiving 
120.17 	grant funding from the USDA/RECD, the authority shall provide assistance in the form 
120.18 	of a grant of up to one-half 65 percent of the eligible grant amount need determined by 
120.19 	USDA/RECD. A governmental unit may not receive a grant under this paragraph for more 
120.20 	than $4,000,000 or $15,000 per existing connection, whichever is less, unless specifically 
120.21 	approved by law. In the case of a sanitary district or other multijurisdictional project for 
120.22 	which the USDA/RECD is unable to fully fund up to one-half its share of the eligible grant 
120.23 	amount need, the authority may provide up to an additional $1,000,000 for each additional 
120.24 	governmental unit participating up to a maximum of $8,000,000 or $15,000 per existing 
120.25 	connection, whichever is less, but not to exceed the maximum grant level determined by 
120.26 	the USDA/RECD as needed to keep the project affordable.
120.27 	(b) For a governmental unit not receiving grant funding from the USDA/RECD, 
120.28 	the authority shall provide assistance in the form of a loan for the eligible project costs 
120.29 	plus the outstanding balance on any existing wastewater system debt that together exceed 
120.30 	five percent of the market value of properties in the project service area, less the amount of 
120.31 	any other grant funding received by the governmental unit for the project. A governmental 
120.32 	unit may not receive a loan under this paragraph for more than $4,000,000 or $15,000 per 
120.33 	existing connection, whichever is less, unless specifically approved by law. In the case of 
120.34 	a sanitary district or other multijurisdictional project, the authority may provide a loan 
120.35 	under this paragraph for up to an additional $1,000,000 for each additional municipality 
121.1 	participating up to a maximum of $8,000,000 or $15,000 per existing connection, 
121.2 	whichever is less, unless specifically approved by law. A loan under this paragraph must 
121.3 	bear no interest, must be repaid as provided in subdivision 7, and must only be provided in 
121.4 	conjunction with a loan from the clean water revolving fund under section 446A.07. 
121.5 	(c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental unit 
121.6 	receiving supplemental assistance under this section after January 1, 2002, if the authority 
121.7 	determines that the  governmental unit's construction and installation costs are significantly 
121.8 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
121.9 	limits that are more stringent than secondary treatment, the authority shall provide 
121.10 	assistance in the form of half grant and half loan. Assistance from the authority may not 
121.11 	be more than $25,000 per existing connection. Any additional grant amount received for 
121.12 	the same project must be used to reduce the amount of the governmental unit's loan from 
121.13 	the clean water pollution control revolving fund that exceeds five percent of the market 
121.14 	value of properties in the project service area.

121.15 	Sec. 49. Minnesota Statutes 2007 Supplement, section 446A.086, is amended to read:
121.16 	446A.086 STATE MAY GUARANTEE COUNTY GOVERNMENTAL UNIT
121.17 	BUILDING DEBT; REPAYMENT.
121.18 		Subdivision 1.Definitions. (a) As used in this section, the following terms have 
121.19 	the meanings given.
121.20 	(b) "Authority" means the Minnesota Public Facilities Authority.
121.21 	(c) "Commissioner" means the commissioner of finance.
121.22 	(d) "Debt obligation" means:
121.23 	(1) a general obligation bond issued by a county, a bond to which the general 
121.24 	obligation of a county is pledged under section 469.034, subdivision 2, or a bond payable 
121.25 	from a county lease obligation under section 641.24, to provide funds for the construction 
121.26 	of: 
121.27 	(1) (i) jails;
121.28 	(2) (ii) correctional facilities;
121.29 	(3) (iii) law enforcement facilities;
121.30 	(4) (iv) social services and human services facilities; 
121.31 	(5) (v) solid waste facilities; or
121.32 	(6) (vi) qualified housing development projects as defined in section 469.034, 
121.33 	subdivision 2; or
121.34 	(2) a general obligation bond issued by a governmental unit and acquired under the 
121.35 	credit enhanced bond program established under section 446A.087.
122.1 		Subd. 2.Application. (a) This section provides a state guarantee of the payment of 
122.2 	principal and interest on debt obligations if:
122.3 	(1) the obligations are issued after June 30, 2000;
122.4 	(2) application to the Public Facilities Authority is made before issuance; and
122.5 	(3) the obligations are covered by an agreement meeting the requirements of 
122.6 	subdivision 3.
122.7 	(b) Applications to be covered by the provisions of this section must be made in a 
122.8 	form and contain the information prescribed by the authority. Applications are subject to a 
122.9 	fee of $500 for the first each bond issue requested by the county and $250 for each bond 
122.10 	issue thereafter or applicable fees under section 446A.087.
122.11 	(c) Application fees paid under this section must be deposited in a separate county
122.12 	credit enhancement bond guarantee account in the general fund. Money in the county
122.13 	credit enhancement bond guarantee account is appropriated to the authority for purposes 
122.14 	of administering this section.
122.15 	(d) Neither the authority nor the commissioner is required to promulgate 
122.16 	administrative rules under this section and the procedures and requirements established by 
122.17 	the authority or commissioner under this section are not subject to chapter 14.
122.18 		Subd. 3.Agreement. (a) For specified debt obligations of a county to be covered 
122.19 	by this section, the county governmental unit must enter an agreement with the authority 
122.20 	obligating the county governmental unit to be bound by this section.
122.21 	(b) This agreement must be in a form prescribed by the authority and contain any 
122.22 	provisions required by the authority, including, at least, an obligation to:
122.23 	(1) deposit with the paying agent three days before the date on which the payment is 
122.24 	due an amount sufficient to make that payment or ten days prior to the date a payment is 
122.25 	due on revenue bonds issued by the authority under section 446A.087;
122.26 	(2) notify the authority, if the county governmental unit will be unable to make all 
122.27 	or a portion of the payment; and
122.28 	(3) include a provision in the bond resolution and county's agreement with the paying 
122.29 	agent for the debt obligation that requires the paying agent to inform the commissioner if 
122.30 	it becomes aware of a default or potential default in the payment of principal or interest 
122.31 	on that issue or if, on the day two business days before the date a payment is due on that 
122.32 	issue, there are insufficient funds to make the payment on deposit with the paying agent.
122.33 	(c) Funds invested in a refunding escrow account established under section 475.67
122.34 	that are to become available to the paying agent on a principal or interest payment date are 
122.35 	deemed to be on deposit with the paying agent three business days before the payment date. 
123.1 	(d) The provisions of an agreement under this subdivision are binding as to an issue 
123.2 	as long as any debt obligation of the issue remains outstanding.
123.3 	(e) This section and the obligations of the state under this section are not a public debt 
123.4 	of the state under article XI, section 4, of the Minnesota Constitution, and the legislature 
123.5 	may, at any time, choose not to appropriate amounts under subdivision 4, paragraph (b).
123.6 		Subd. 4.Notifications; payment; appropriation. (a) After receipt of a notice of a 
123.7 	default or potential default in payment of principal or interest in debt obligations covered 
123.8 	by this section or an agreement under this section, and after consultation with the county,
123.9 	governmental unit and the paying agent, and after verification of the accuracy of the 
123.10 	information provided, the authority shall notify the commissioner of the potential default. 
123.11 	The notice must include a final figure as to the amount due that the county governmental 
123.12 	unit will be unable to repay on the date due.
123.13 	(b) Upon receipt of this notice from the authority, the commissioner shall issue a 
123.14 	warrant and authorize the authority to pay to the bond holders or paying agent for the 
123.15 	debt obligation the specified amount on or before the date due. The amounts needed 
123.16 	for the purposes of this subdivision are annually appropriated to the authority from the 
123.17 	general fund.
123.18 		Subd. 5.Interest on state paid amount. If the state has paid part or all of the 
123.19 	principal or interest due on a county's debt obligation, the amount paid bears interest 
123.20 	from the date paid by the state until the date of repayment. The interest rate is the 
123.21 	commissioner's invested cash rate as it is certified by the commissioner. Interest only 
123.22 	accrues on the amounts paid and outstanding less the reduction in aid under subdivision 7 
123.23 	and other payments received from the county governmental unit.
123.24 		Subd. 6.Pledge of county's governmental unit's full faith and credit. If the 
123.25 	state has paid part or all of the principal or interest due on a county's debt obligation, 
123.26 	the county's governmental unit's pledge of its full faith and credit and unlimited taxing 
123.27 	powers to repay the principal and interest due on those debt obligations becomes, without 
123.28 	an election or the requirement of a further authorization, a pledge of the full faith and 
123.29 	credit and unlimited taxing powers of the county governmental unit to repay to the state 
123.30 	the amount paid, with interest. Amounts paid by the state must be repaid in the order 
123.31 	in which the state payments were made.
123.32 		Subd. 7.Aid reduction for repayment. (a) Except as provided in paragraph (b), 
123.33 	the commissioner may reduce, by the amount paid by the state under this section on behalf 
123.34 	of the county governmental unit, plus the interest due on the state payments, the county 
123.35 	program local government aid under section 477A.0124 chapter 477A. The amount of any 
123.36 	aid reduction reverts from the appropriate account to the state general fund.
124.1 	(b) If, after review of the financial situation of the county governmental unit, the 
124.2 	authority advises the commissioner that a total reduction of the aids would cause an 
124.3 	undue hardship on the county governmental unit, the authority, with the approval of the 
124.4 	commissioner, may establish a different schedule for reduction of aids to repay the state. 
124.5 	The amount of aids to be reduced are decreased by any amounts repaid to the state by the 
124.6 	county governmental unit from other revenue sources.
124.7 		Subd. 8.Tax levy for repayment. (a) With the approval of the authority, a county
124.8 	governmental unit may levy in the year the state makes a payment under this section an 
124.9 	amount up to the amount necessary to provide funds for the repayment of the amount 
124.10 	paid by the state plus interest through the date of estimated repayment by the county
124.11 	governmental unit. The proceeds of this levy may be used only for this purpose unless 
124.12 	they exceed the amount actually due. Any excess must be used to repay other state 
124.13 	payments made under this section or must be deposited in the debt redemption fund of 
124.14 	the county governmental unit. The amount of aids to be reduced to repay the state are 
124.15 	decreased by the amount levied.
124.16 	(b) If the state is not repaid in full for a payment made under this section by 
124.17 	November 30 of the calendar year following the year in which the state makes the 
124.18 	payment, the authority shall require the county governmental unit to certify a property 
124.19 	tax levy in an amount up to the amount necessary to provide funds for repayment of the 
124.20 	amount paid by the state plus interest through the date of estimated repayment by the 
124.21 	county governmental unit. To prevent undue hardship, the authority may allow the county
124.22 	governmental unit to certify the levy over a five-year period. The proceeds of the levy 
124.23 	may be used only for this purpose unless they are in excess of the amount actually due, in 
124.24 	which case the excess must be used to repay other state payments made under this section 
124.25 	or must be deposited in the debt redemption fund of the county governmental unit. If the 
124.26 	authority orders the county governmental unit to levy, the amount of aids reduced to repay 
124.27 	the state are decreased by the amount levied.
124.28 	(c) A levy under this subdivision is an increase in the levy limits of the county
124.29 	governmental unit for purposes of section 275.065, subdivision 6, and must be explained 
124.30 	as a specific increase at the meeting required under that provision. 
124.31 		Subd. 9.Mandatory plan; technical assistance. If the state makes payments on 
124.32 	behalf of a county governmental unit under this section or the county governmental unit
124.33 	defaults in the payment of principal or interest on an outstanding debt obligation, it must 
124.34 	submit a plan to the authority for approval specifying the measures it intends to implement 
124.35 	to resolve the issues which led to its inability to make the payment and to prevent 
124.36 	further defaults. If the authority determines that a county's governmental unit's plan is 
125.1 	not adequate, the authority shall notify the county governmental unit that the plan has 
125.2 	been disapproved, the reasons for the disapproval, and that the state will not make future 
125.3 	payments under this section for debt obligations of the affected county governmental unit
125.4 	issued after the date specified in that notice until its plan is approved. The authority may 
125.5 	also notify the county governmental unit that until its plan is approved, aids due the county
125.6 	governmental unit will be withheld after a date specified in the notice.
125.7 		Subd. 10.Continuing disclosure agreements. The authority may enter into written 
125.8 	agreements or contracts relating to the continuing disclosure of information needed to 
125.9 	facilitate the ability of counties governmental units to issue debt obligations according 
125.10 	to federal securities laws, rules, and regulations, including securities and exchange 
125.11 	commission rules and regulations, section 240.15c2-12. The agreements or contracts may 
125.12 	be in any form the authority deems reasonable and in the state's best interests.

125.13 	Sec. 50. [446A.087] CREDIT ENHANCED BOND PROGRAM.
125.14 		Subdivision 1.Establishment of program. A credit enhanced bond program is 
125.15 	established for the purposes set forth in subdivision 2.
125.16 		Subd. 2.Purpose. The purpose of the credit enhanced bond program is to 
125.17 	provide loans to governmental units through the purchase of general obligation bonds 
125.18 	of governmental units issued to finance all or a portion of the costs of a project. The 
125.19 	program shall include providing credit enhancement to the general obligation bonds of the 
125.20 	governmental unit through the guarantee program as provided in section 446A.086. The 
125.21 	authority shall obtain funds to make the loans authorized pursuant to this section through 
125.22 	the issuance of its revenue bonds payable from loan repayments pledged to the bonds, and 
125.23 	such other sources and security as are specifically pledged by the authority.
125.24 		Subd. 3.Definitions. (a) Terms used in this section have the meanings given to 
125.25 	them in this subdivision.
125.26 	(b) "Applicant" means any governmental unit applying to the authority for a loan 
125.27 	pursuant to this section.
125.28 	(c) "Borrower" means any governmental unit that has entered into a commitment 
125.29 	for the sale of its general obligation bonds to the authority pursuant to this section and 
125.30 	subsequently sells its general obligation bonds to the authority and enters into a regulatory 
125.31 	agreement.
125.32 	(d) "Commitment" means a written agreement between a governmental unit and the 
125.33 	authority obligating the governmental unit to deliver its general obligation bonds to the 
125.34 	authority on a date in the future evidencing a loan pursuant to this section and to enter 
126.1 	into a regulatory agreement with the authority, all upon the terms and conditions set 
126.2 	forth in the commitment.
126.3 	(e) "Eligible cost" means any cost of a project authorized by law to be financed from 
126.4 	the proceeds of general obligation bonds of a governmental unit.
126.5 	(f) "General obligation bonds" means bonds or notes secured by the full faith and 
126.6 	credit and unlimited taxing powers of a governmental unit.
126.7 	(g) "Project" means the construction, improvement, or rehabilitation of:
126.8 	(1) wastewater facilities;
126.9 	(2) drinking water facilities;
126.10 	(3) storm water facilities;
126.11 	(4) streets, street lighting, curbs, gutters, and sidewalks;
126.12 	(5) energy conservation or alternative energy sources for use in public buildings or 
126.13 	facilities;
126.14 	(6) telecommunications facilities;
126.15 	(7) public safety buildings including those providing police and fire protection; or
126.16 	(8) any publicly owned building or infrastructure improvement that has received 
126.17 	partial funding from grants awarded by the commissioner of employment and economic 
126.18 	development related to redevelopment, contaminated site cleanup, bioscience, small cities 
126.19 	development programs, and rural business infrastructure programs.
126.20 	(h) "Regulatory agreement" means a written agreement entered into by the authority 
126.21 	and a borrower in connection with the purchase of the borrower's general obligation bonds 
126.22 	by the authority pursuant to this section.
126.23 		Subd. 4.Establishment of fund and accounts. A credit enhancement bond 
126.24 	program fund is established for the purposes described in subdivision 2. Other accounts 
126.25 	may be established in the fund as necessary for its management and administration. 
126.26 	Money in the fund is annually appropriated to the authority and does not lapse. The fund 
126.27 	must be credited with investment income, and with repayments of principal and interest, 
126.28 	except for fees assessed under section 446A.04, subdivisions 5 and 15.
126.29 		Subd. 5.Management of fund and accounts. The authority shall manage and 
126.30 	administer the credit enhancement bond program fund and individual accounts in the fund. 
126.31 	For those purposes, the authority may exercise all powers provided in this chapter.
126.32 		Subd. 6.Applications. (a) Applicants for participation in the credit enhancement 
126.33 	bond program must submit an application to the authority on forms prescribed by the 
126.34 	authority. The applicant shall provide information customary to that needed for the 
126.35 	disclosure purposes in issuing general obligation bonds in the market, in addition to the 
126.36 	following information:
127.1 	(1) the total estimated cost of the project and the amount of general obligation 
127.2 	bond proceeds sought;
127.3 	(2) other sources of funding if the general obligation bond proceeds do not cover 
127.4 	the entire costs identified;
127.5 	(3) the proposed sources of funds to be used for repayment of the general obligation 
127.6 	bonds;
127.7 	(4) information showing the applicant's financial status and ability of the applicant 
127.8 	to repay loans;
127.9 	(5) the proposed term and principal repayment schedule for the general obligation 
127.10 	bonds of the applicant; and
127.11 	(6) the statutory authorization for the applicant to issue such general obligation 
127.12 	bonds, together with a statement that the statutory provision authorizes the use of proceeds 
127.13 	of such general obligation bonds to pay the costs of a project.
127.14 	(b) The authority may establish deadlines or time periods for the submission of 
127.15 	applications to facilitate funding loans from the proceeds of a specific bond issue proposed 
127.16 	or previously issued by the authority, or the authority may accept applications from time 
127.17 	to time.
127.18 	(c) Each application must be complete and accurate to be considered delivered to 
127.19 	and received by the authority or to be considered as having met any deadline established 
127.20 	by the authority with respect to an application period. If any application is determined by 
127.21 	the authority to be incomplete or inaccurate, the authority shall notify the applicant and 
127.22 	specify the missing or inaccurate information.
127.23 	(d) The executive director and the staff of the authority shall evaluate the applications 
127.24 	to determine if the application should be accepted or rejected by the authority.
127.25 	(e) The authority is not obligated to accept any application including those complete 
127.26 	and accurate and submitted by any specified deadline for submission if the authority 
127.27 	determines that it is not practicable to fund the loan for any reason including, but not 
127.28 	limited to, the creditworthiness of the applicant, the proposed loan amount, the term 
127.29 	and repayment schedule, the sources of funding available to the authority, and current 
127.30 	market conditions. Upon acceptance and approval of an application by the authority, the 
127.31 	authority may require that the applicant authorize, execute, and deliver a commitment to 
127.32 	the authority within such time period specified by the authority in its acceptance of the 
127.33 	application. The authority may reject an approved application for failure by the applicant 
127.34 	to authorize, execute, and deliver a commitment by the specified deadline.
127.35 		Subd. 7.Loan terms and conditions. (a) The terms and conditions of loans 
127.36 	provided by the authority pursuant to the credit enhanced bond program are as provided 
128.1 	by this section, any applicable bond resolution or series bond resolution of the authority, 
128.2 	any trust indenture pursuant to which any series of bonds of the authority are issued, 
128.3 	the regulatory agreement, the commitment and the general obligation bond, and the 
128.4 	authorizing resolution of the borrower.
128.5 	(b) The loan must be made by the authority through its purchase of the general 
128.6 	obligation bond of the borrower. The borrower shall provide the authority with the 
128.7 	opinion of nationally recognized bond counsel as to the valid authorization, issuance, and 
128.8 	enforceability of the general obligation bond of the borrower, and the exclusion of interest 
128.9 	thereon from gross income for the purposes of federal taxation, subject to customary 
128.10 	qualifications. The general obligation bond of the borrower may pledge other specified 
128.11 	sources of revenues for repayment to the extent permitted or required by law, in addition 
128.12 	to the full faith and credit and unlimited taxing powers of the borrower.
128.13 	(c) The authority may disburse the proceeds of the loan as a single payment for the 
128.14 	general obligation bond or from time to time pursuant to draw requests if the general 
128.15 	obligation bond of the borrower is structured as a periodic drawdown bond. In the event 
128.16 	the authority pays for the general obligation bond in a single payment, the borrower 
128.17 	shall establish a project account and disburse the proceeds of its general obligation bond 
128.18 	solely for costs of the project approved in its application pursuant to such additional 
128.19 	requirements specified in the regulatory agreement.
128.20 	(d) In order to facilitate the issuance of the authority's revenue bonds to finance 
128.21 	a pool of loans to different borrowers, the authority may require the borrower in the 
128.22 	commitment to issue its general obligation bond on a date certain in the future, and 
128.23 	may require the borrower to pay the costs incurred by the authority as a result of the 
128.24 	borrower's failure to deliver its general obligation bond as required by the commitment. 
128.25 	The commitment may also require the borrower to provide to the authority full disclosure 
128.26 	of all material facts and financial information relating to the borrower that would be 
128.27 	required if the borrower issued its general obligation bond to the public, certified as to 
128.28 	completeness and accuracy by authorized officers of the borrower, and authorization for 
128.29 	the authority to use such information in connection with the sale of the authority's revenue 
128.30 	bonds or disclosure relating to the authority's revenue bonds.
128.31 	(e) In addition to delivering its general obligation bond, each borrower shall enter 
128.32 	into a regulatory agreement with the authority providing additional terms of the loan 
128.33 	as the authority may specify, including providing to the authority periodic reports and 
128.34 	information relating to the acquisition or construction of the project and use of the 
128.35 	proceeds of the borrower's general obligation bond and periodic operating, financial, and 
129.1 	other information as to the creditworthiness of the borrower, and providing and filing 
129.2 	continuing secondary market disclosure to the extent required by the authority.
129.3 	(f) The purchase or commitment to purchase general obligation bonds of borrowers 
129.4 	by the authority shall be subject to the availability of proceeds of revenue bonds of the 
129.5 	authority for such purpose and the authority is not liable to any borrower for the failure to 
129.6 	purchase its general obligation bond pursuant to a commitment or any other agreement if 
129.7 	proceeds of the authority's revenue bonds are not available for any reason.
129.8 		Subd. 8.Interest rate determination. The rate of interest on the general obligation 
129.9 	bonds of the borrower must be the true interest cost on the revenue bonds of the authority 
129.10 	issued to purchase such general obligation bonds of the borrower plus the ongoing 
129.11 	percentage fee charged by the authority under subdivision 10; provided that the interest 
129.12 	rate must not exceed any limit imposed by federal tax law with respect to the authority's 
129.13 	revenue bonds.
129.14 		Subd. 9.Market considerations. The authority may suspend offering loans if it is 
129.15 	determined by the executive director that there are extreme or unusual events impacting 
129.16 	the bond market and that to continue making loans would be detrimental to holders of the 
129.17 	authority's revenue bonds or the financial viability of the credit enhanced bond program, 
129.18 	or if the state is warned by one of its rating agencies that continuing to make loans will 
129.19 	result in lowering the state's bond rating. If the making of loans is suspended under this 
129.20 	section, the authority shall have the option to resume making loans once it has determined 
129.21 	that the conditions for suspending the program no longer exist.
129.22 		Subd. 10.Fees. The authority shall charge a nonrefundable application fee of 
129.23 	$1,000 payable by each applicant upon submission of an application to the authority. A 
129.24 	separate application fee must be payable for each application submitted, including a 
129.25 	resubmitted application for an application that was rejected by the authority or determined 
129.26 	to be incomplete or inaccurate by the authority. The authority shall charge an ongoing 
129.27 	periodic fee of ten basis points of the outstanding principal amount of the loan to be added 
129.28 	to, and be a component of, the interest rate on the general obligation bonds of the borrower.
129.29 		Subd. 11.Authority revenue bonds. (a) The authority is authorized to issue 
129.30 	revenue bonds as provided in this chapter to fund the credit enhanced bond program. 
129.31 	The revenue bonds may be issued in one or more series pursuant to a resolution of the 
129.32 	authority or a series resolution or pursuant to a trust indenture with a financial institution 
129.33 	with trust powers as trustee, authorized by resolution of the authority. Any issue of bonds 
129.34 	may be used to fund one or more loans, may be payable by the loans funded from such 
129.35 	issue of bonds and such additional loans as pledged by the authority, and may be payable 
129.36 	on a subordinated basis to other bonds. As permitted by the terms of any revenue bonds 
130.1 	issued by the authority, the authority may sell the general obligations pledged to the 
130.2 	payment of the revenue bonds and any proceeds of the sale in excess of those used to pay 
130.3 	the principal of the revenue bonds must be deposited to the credit enhanced bond program 
130.4 	fund and may be used to purchase additional general obligation bonds of borrowers, to 
130.5 	provide credit enhancement for the authority's revenue bonds, or to pay any other expense 
130.6 	of the credit enhanced bond program.
130.7 	(b) The authority may issue short-term bonds in anticipation of issuing long-term 
130.8 	bonds for the purpose of acquiring general obligation bonds of borrowers.
130.9 	(c) Bonds issued by the authority for the credit enhanced bond program must not 
130.10 	be general obligations of the authority to the payment of which the general assets of the 
130.11 	authority are pledged or available for payment. All bonds issued for the credit enhanced 
130.12 	bond programs by the authority must be revenue bonds payable solely from the sources 
130.13 	specified in the bond.
130.14 		Subd. 12.Reports, disclosure, audits. (a) During the term of the loan the borrower 
130.15 	shall provide written reports to the authority. The content and timing of these reports must 
130.16 	be as specified in the regulatory agreement.
130.17 	(b) During the term of the loan the borrower shall disclose to the authority any 
130.18 	material information or events adversely affecting the creditworthiness of the borrower 
130.19 	as specified in the regulatory agreement. If required by the authority in a regulatory 
130.20 	agreement, the borrower shall enter into a continuing disclosure undertaking to provide 
130.21 	disclosure to the market.
130.22 	(c) During the term of the loan, the borrower shall provide to the authority on an 
130.23 	annual basis financial statements of the borrower audited by an independent accounting 
130.24 	firm, as further specified in the regulatory agreement.

130.25 	Sec. 51. Minnesota Statutes 2006, section 446A.12, subdivision 1, is amended to read:
130.26 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
130.27 	principal amount that the authority determines necessary to provide sufficient funds for 
130.28 	achieving its purposes, including the making of loans and purchase of securities, the 
130.29 	payment of interest on bonds of the authority, the establishment of reserves to secure 
130.30 	its bonds, the payment of fees to a third party providing credit enhancement, and the 
130.31 	payment of all other expenditures of the authority incident to and necessary or convenient 
130.32 	to carry out its corporate purposes and powers, but not including the making of grants. 
130.33 	Bonds of the authority may be issued as bonds or notes or in any other form authorized 
130.34 	by law. The principal amount of bonds issued and outstanding under this section at any 
130.35 	time may not exceed $1,500,000,000, excluding bonds for which refunding bonds or 
131.1 	crossover refunding bonds have been issued., and excluding any bonds issued for the 
131.2 	credit enhanced bond program or refunding or crossover refunding bonds issued under the 
131.3 	program. The principal amount of bonds issued and outstanding under section 446A.087, 
131.4 	may not exceed $500,000,000, excluding bonds for which refunding bonds or crossover 
131.5 	refunding bonds have been issued.

131.6 	Sec. 52. Laws 1999, chapter 223, article 2, section 72, is amended to read:
131.7 	Sec. 72. UPPER RED LAKE BUSINESS LOAN PROGRAM.
 131.8 	The commissioner of trade and economic development must make loans to 
131.9 	businesses in the Upper Red Lake area that have been severely affected by the significant 
131.10 	decline of the walleye fishing resource in Upper Red Lake. The loans may only be 
131.11 	made to businesses that operated in 1998. A business must submit an application to the 
131.12 	commissioner on forms provided by the commissioner. The application must include a 
131.13 	business plan for continued operation, with the assistance of the loan, until the walleye 
131.14 	fishing resource recovers. The commissioner shall allocate available loan funds to a 
131.15 	business based on the commissioner's evaluation of the probable success of its business 
131.16 	plan. A loan shall be for a maximum amount of $75,000 and a duration of ten years from 
131.17 	the date of the loan and shall be interest free. Repayment of a loan in monthly payments 
131.18 	of 1/120 of the original principal amount must begin no later than one year after walleye 
131.19 	fishing on Upper Red Lake is allowed by the department of natural resources recovered to 
131.20 	a bag limit of six fish. Any principal balance remaining at the end of the ten-year period 
131.21 	shall be forgiven if the business continues in operation for the ten-year period. Loan 
131.22 	repayments shall be deposited in the general fund.

131.23 	Sec. 53. Laws 2007, chapter 135, article 1, section 3, subdivision 2, is amended to read:

131.24
131.25	Subd. 2. Business and Community 
Development
 		40,667,000 
		8,639,000 

131.26	Appropriations by Fund 
	
131.27	General 
	39,967,000 
	7,939,000 
	
131.28	Remediation  
	700,000 
	700,000 
	
131.29 	(a) (1) $250,000 the first year and $250,000 
131.30 	the second year are from the general fund 
131.31 	for a grant under Minnesota Statutes, 
131.32 	section 116J.421, to the Rural Policy and 
131.33 	Development Center at St. Peter, Minnesota. 
131.34 	The grant shall be used for research and 
132.1 	policy analysis on emerging economic and 
132.2 	social issues in rural Minnesota, to serve as 
132.3 	a policy resource center for rural Minnesota 
132.4 	communities, to encourage collaboration 
132.5 	across higher education institutions to 
132.6 	provide interdisciplinary team approaches 
132.7 	to research and problem-solving in rural 
132.8 	communities, and to administer overall 
132.9 	operations of the center. 
132.10 	(2) The grant shall be provided upon the 
132.11 	condition that each state-appropriated 
132.12 	dollar be matched with a nonstate dollar. 
132.13 	Acceptable matching funds are nonstate 
132.14 	contributions that the center has received and 
132.15 	have not been used to match previous state 
132.16 	grants. Any unencumbered balance in the 
132.17 	first year is available for the second year. 
132.18 	(b) $250,000 the first year and $250,000 
132.19 	the second year are from the general fund 
132.20 	for a grant to WomenVenture for women's 
132.21 	business development programs. 
132.22 	(c) $250,000 the first year is for a grant to 
132.23 	University Enterprise Laboratories (UEL) 
132.24 	for its direct and indirect expenses to support 
132.25 	efforts to encourage the growth of early-stage 
132.26 	and emerging bioscience companies. UEL 
132.27 	must provide a report by June 30 each year 
132.28 	to the commissioner on the expenditures 
132.29 	until the appropriation is expended. This is a 
132.30 	onetime appropriation and is available until 
132.31 	expended. 
132.32 	(d) $2,000,000 the first year is for grants 
132.33 	under Minnesota Statutes, section 116J.571, 
132.34 	for the redevelopment grant program. This is 
132.35 	a onetime appropriation. 
133.1 	Of this amount, $100,000 is for a grant to 
133.2 	the Neighborhood Development Corporation 
133.3 	for assistance necessary to retain business 
133.4 	enterprises at the Global Market and is 
133.5 	available until expended.
133.6 	(e) $100,000 the first year and $100,000 the 
133.7 	second year are to help small businesses 
133.8 	access federal funds through the federal 
133.9 	Small Business Innovation Research Program 
133.10 	and the federal Small Business Technology 
133.11 	Transfer Program. Department services 
133.12 	must include maintaining connections to 
133.13 	11 federal programs, assessment of specific 
133.14 	funding opportunities, review of funding 
133.15 	proposals, referral to specific consulting 
133.16 	services, and training workshops throughout 
133.17 	the state. Unless prohibited by federal law, 
133.18 	the department must implement fees for 
133.19 	services that help companies seek federal 
133.20 	Phase II Small Business Innovation Research 
133.21 	grants. The recommended fee schedule 
133.22 	must be reported to the chairs of the house 
133.23 	of representatives finance committee and 
133.24 	senate budget division with jurisdiction over 
133.25 	economic development by February 1, 2008. 
133.26 	(f) $100,000 the first year and $100,000 
133.27 	the second year are appropriated to the 
133.28 	Public Facilities Authority for the small 
133.29 	community wastewater treatment program 
133.30 	under Minnesota Statutes, chapter 446A. 
133.31 	(g) $255,000 the first year and $155,000 
133.32 	the second year are from the general fund 
133.33 	for a grant to the Metropolitan Economic 
133.34 	Development Association for continuing 
134.1 	minority business development programs in 
134.2 	the metropolitan area. 
134.3 	(h) $85,000 the first year and $85,000 the 
134.4 	second year are for grants to the Minnesota 
134.5 	Inventors Congress. Of this amount, $10,000 
134.6 	each year is for the Student Inventors 
134.7 	Congress. 
134.8 	(i) $151,000 the first year is for a onetime 
134.9 	grant to the city of Faribault to design, 
134.10 	construct, furnish, and equip renovations to 
134.11 	accommodate handicapped accessibility at 
134.12 	the Paradise Center for the Arts. 
134.13 	(j) $750,000 the first year is to Minnesota 
134.14 	Technology, Inc. for the small business 
134.15 	growth acceleration program established 
134.16 	under Minnesota Statutes, section 116O.115. 
134.17 	This is a onetime appropriation. This 
134.18 	appropriation does not cancel, but is 
134.19 	available until June 30, 2011.
134.20 	(k) $300,000 the first year is for a onetime 
134.21 	grant to the city of Northome for the 
134.22 	construction of a new municipal building to 
134.23 	replace the structures damaged by fire on 
134.24 	July 22, 2006. This appropriation is available 
134.25 	when the commissioner determines that a 
134.26 	sufficient match is available from nonstate 
134.27 	sources to complete the project. 
134.28 	(l) $300,000 the first year is for a grant to the 
134.29 	city of Worthington for an agricultural-based 
134.30 	bioscience training and testing center. Funds 
134.31 	appropriated under this section must be used 
134.32 	to provide a training and testing facility for 
134.33 	incubator firms developing new agricultural 
134.34 	processes and products. This is a onetime 
134.35 	appropriation and is available until expended. 
135.1 	(m) $1,750,000 the first year is for a onetime 
135.2 	grant to BioBusiness Alliance of Minnesota 
135.3 	for bioscience business development 
135.4 	programs to promote and position the state 
135.5 	as a global leader in bioscience business 
135.6 	activities. These funds may be used for: 
135.7 	(1) completion and periodic updating of 
135.8 	a statewide bioscience business industry 
135.9 	assessment of business technology 
135.10 	enterprises and Minnesota's competitive 
135.11 	position employing annual updates to federal 
135.12 	industry classification data; 
135.13 	(2) long-term strategic planning that includes 
135.14 	projections of market changes resulting 
135.15 	from developments in biotechnology and the 
135.16 	development of 20-year goals, strategies, and 
135.17 	identified objectives for renewable energy, 
135.18 	medical devices, biopharma, and biologics 
135.19 	business development in Minnesota; 
135.20 	(3) the design and construction of a 
135.21 	Minnesota focused bioscience business 
135.22 	model to test competing strategies and 
135.23 	scenarios, evaluate options, and forecast 
135.24 	outcomes; and 
135.25 	(4) creation of a bioscience business 
135.26 	resources network that includes development 
135.27 	of a statewide bioscience business economic 
135.28 	development framework to encourage 
135.29 	bioscience business development and 
135.30 	encourage spin-off activities, attract 
135.31 	bioscience business location or expansion in 
135.32 	Minnesota, and establish a local capability to 
135.33 	support strategic system level planning for 
135.34 	industry, government, and academia. 
136.1 	This appropriation is available until June 30, 
136.2 	2009. 
136.3 	(n) $125,000 the first year is to develop and 
136.4 	operate a bioscience business marketing 
136.5 	program to market Minnesota bioscience 
136.6 	businesses and business opportunities 
136.7 	to other states and other countries. The 
136.8 	bioscience business marketing program must 
136.9 	emphasize bioscience business location and 
136.10 	expansion opportunities in communities 
136.11 	outside of the seven-county metropolitan 
136.12 	area as defined in Minnesota Statutes, 
136.13 	section 473.121, subdivision 2, that have 
136.14 	established collaborative plans among two 
136.15 	or more municipal units for bioscience 
136.16 	business activities, and that are within 15 
136.17 	miles of a four-year, baccalaureate degree 
136.18 	granting institution or a two-year technical 
136.19 	or community college that offers bioscience 
136.20 	curricula. The commissioner must report 
136.21 	to the committees of the senate and house 
136.22 	of representatives having jurisdiction 
136.23 	over bioscience and technology issues by 
136.24 	February 1 of each year on the expenditures 
136.25 	of these funds and the promotional activities 
136.26 	undertaken to market the Minnesota 
136.27 	bioscience industry to persons outside of the 
136.28 	state. This is a onetime appropriation and is 
136.29 	available until expended. 
136.30 	(o) $325,000 is for a grant to the Walker 
136.31 	Area Community Center, Inc., to construct, 
136.32 	furnish, and equip the Walker Area 
136.33 	Community Center. This appropriation is 
136.34 	not available until the commissioner has 
136.35 	determined that an amount sufficient to 
136.36 	complete the project has been committed 
137.1 	from nonstate sources. This is a onetime 
137.2 	appropriation and is available until expended. 
137.3 	(p) $100,000 the first year is for a grant 
137.4 	to the Pine Island Economic Development 
137.5 	Authority for predesign to upgrade and 
137.6 	extend utilities to serve Elk Run Bioscience 
137.7 	Research Park and The Falls - Healthy 
137.8 	Living By Nature, an integrated medicine 
137.9 	facility. This is a onetime appropriation and 
137.10 	is available until expended. 
137.11 	(q) $350,000 the first year is for a grant 
137.12 	to Thomson Township for infrastructure 
137.13 	improvements for the industrial park. This 
137.14 	is a onetime appropriation and is available 
137.15 	until expended. 
137.16 	(r) $75,000 the first year is for a grant to 
137.17 	Le Sueur County for the cost of cleaning 
137.18 	up debris from lakes in Le Sueur County, 
137.19 	caused by the August 24, 2006, tornado in 
137.20 	southern Le Sueur County. This is a onetime 
137.21 	appropriation and is available until expended. 
137.22 	(s) $400,000 the first year is for a grant to 
137.23 	the city of Rogers to be used for relief from 
137.24 	damages caused by the September 16, 2006, 
137.25 	tornado. 
137.26 	(t) $75,000 the first year is for a grant to 
137.27 	the city of Warroad for new public facilities 
137.28 	to replace those damaged or destroyed 
137.29 	by the August 2006 tornado, including 
137.30 	approximately 28 new street lights and 
137.31 	underground electrical circuits and a new 
137.32 	fish cleaning house. This is a onetime 
137.33 	appropriation and is available until expended. 
137.34 	If an appropriation for this purpose is enacted 
138.1 	more than once in the 2007 session, the 
138.2 	appropriation is effective only once. 
138.3 	(u) $500,000 the first year is for a grant to 
138.4 	the Upper Sioux Community to improve the 
138.5 	current water system to ensure continuity 
138.6 	of service to the entire population of the 
138.7 	community and to meet the demands of the 
138.8 	community expansion over the next 20 years. 
138.9 	The is a onetime appropriation and is not 
138.10 	available until the Public Facilities Authority 
138.11 	has determined that at least $1,000,000 has 
138.12 	been committed from nonstate sources. This 
138.13 	appropriation is available until expended. * 
138.14 	(The preceding text beginning "(u) $500,000 
138.15 	the first year is for" was indicated as vetoed 
138.16 	by the governor.) 
138.17 	(v) $755,000 the first year is for the urban 
138.18 	challenge grant program under Minnesota 
138.19 	Statutes, section 116M.18. This is a onetime 
138.20 	appropriation. 
138.21 	(w) $1,100,000 is for a grant to the 
138.22 	Neighborhood Development Center for 
138.23 	assistance necessary to retain minority 
138.24 	business enterprises at the Global Market. 
138.25 	This is a onetime appropriation and is 
138.26 	available until expended. 
138.27 	(x) $350,000 the first year is for a onetime 
138.28 	grant to the city of Inver Grove Heights 
138.29 	to reduce debt on the Inver Grove Heights 
138.30 	Veterans Memorial Community Center. * 
138.31 	(The preceding text beginning "(x) $350,000 
138.32 	the first year is for" was indicated as vetoed 
138.33 	by the governor.) 
138.34 	(y) $14,900,000 the first year is for the 
138.35 	Minnesota minerals 21st century fund created 
139.1 	in Minnesota Statutes, section 116J.423, to 
139.2 	partially restore the money unallotted by the 
139.3 	commissioner of finance in 2003 pursuant 
139.4 	to Minnesota Statutes, section 16A.152. 
139.5 	This appropriation may be used as provided 
139.6 	in Minnesota Statutes, section 116J.423, 
139.7 	subdivision 2. This appropriation is available 
139.8 	until expended. 
139.9 	(z) $2,500,000 the first year is for a grant to 
139.10 	the city of St. Paul to be used to pay, redeem, 
139.11 	or refund debt service costs incurred for the 
139.12 	River Centre Campus. * (The preceding text 
139.13 	beginning "(z) $2,500,000 the first year is 
139.14 	for" was indicated as vetoed by the governor.) 
139.15 	(aa) $147,000 each year is appropriated from 
139.16 	the general fund to the commissioner of 
139.17 	employment and economic development for 
139.18 	grants of $49,000 to eligible organizations 
139.19 	each year and for the purposes of this 
139.20 	paragraph. Each state grant dollar must be 
139.21 	matched with $1 of nonstate funds. Any 
139.22 	balance in the first year does not cancel but 
139.23 	is available in the second year. The base for 
139.24 	these grants in fiscal years 2010 and 2011 
139.25 	is $189,000 each year, with each eligible 
139.26 	organization receiving a $63,000 grant each 
139.27 	year. 
139.28 	The commissioner of employment and 
139.29 	economic development must make grants to 
139.30 	organizations to assist in the development 
139.31 	of entrepreneurs and small businesses. 
139.32 	Three grants must be awarded to continue 
139.33 	or to develop a program. One grant must 
139.34 	be awarded to the Riverbend Center for 
139.35 	Entrepreneurial Facilitation in Blue Earth 
140.1 	County, and two to other organizations 
140.2 	serving Faribault and Martin Counties. Grant 
140.3 	recipients must report to the commissioner 
140.4 	by February 1 of each year that the 
140.5 	organization receives a grant with the 
140.6 	number of customers served; the number of 
140.7 	businesses started, stabilized, or expanded; 
140.8 	the number of jobs created and retained; and 
140.9 	business success rates. The commissioner 
140.10 	must report to the house of representatives 
140.11 	and senate committees with jurisdiction 
140.12 	over economic development finance on the 
140.13 	effectiveness of these programs for assisting 
140.14 	in the development of entrepreneurs and 
140.15 	small businesses. 
140.16 	(bb) $5,000,000 $2,000,000 the first year is 
140.17 	for grants under Minnesota Statutes, section 
140.18 	116J.8731, for the Minnesota investment 
140.19 	fund program. Of this amount, up to 
140.20 	$3,000,000 may be used for a legal reference 
140.21 	office and data center facility, provided that 
140.22 	the total capital investment in the facility 
140.23 	is at least $60,000,000. This grant is not 
140.24 	subject to grant limitations under Minnesota 
140.25 	Statutes, section 116J.8731, subdivision 5
140.26 	$1,000,000 must be used for biomass heating 
140.27 	grants and loans under section 55. This is 
140.28 	a onetime appropriation and is available in 
140.29 	either year of the biennium. 

140.30 	Sec. 54. Laws 2007, chapter 135, article 1, section 3, subdivision 3, is amended to read:

140.31	Subd.  3. Workforce Development
 		50,024,000 
		49,833,000 

140.32	Appropriations by Fund 
	
140.33	General 
	33,529,000 
	33,338,000 
	
140.34
140.35	Workforce 
Development 
	16,495,000 
	16,495,000 
	
141.1 	(a) $6,785,000 the first year and $6,785,000 
141.2 	the second year are from the general fund 
141.3 	for the Minnesota job skills partnership 
141.4 	program under Minnesota Statutes, sections 
141.5 	116L.01 to 116L.17. If the appropriation for 
141.6 	either year is insufficient, the appropriation 
141.7 	for the other year is available for it. This 
141.8 	appropriation does not cancel. 
141.9 	(b) $455,000 the first year and $455,000 the 
141.10 	second year are from the general fund for 
141.11 	a grant under Minnesota Statutes, section 
141.12 	116J.8747, to Twin Cities RISE! to provide 
141.13 	training to hard-to-train individuals. 
141.14 	(c) $1,375,000 each year is from 
141.15 	the workforce development fund for 
141.16 	Opportunities Industrialization Center 
141.17 	programs. 
141.18 	(d) $5,614,000 each year is from the general 
141.19 	fund and $6,920,000 each year is from the 
141.20 	workforce development fund for extended 
141.21 	employment services for persons with 
141.22 	severe disabilities or related conditions under 
141.23 	Minnesota Statutes, section 268A.15. Of this, 
141.24 	$125,000 each year and in the base for fiscal 
141.25 	years 2010 and 2011 is to supplement funds 
141.26 	paid for wage incentives for the community 
141.27 	support fund established in Minnesota Rules, 
141.28 	part 3300.2045. The commissioner shall 
141.29 	not reduce total expenditures from these 
141.30 	appropriations.
141.31 	(e) $1,650,000 the first year and $1,650,000 
141.32 	the second year are from the general fund for 
141.33 	grants for programs that provide employment 
141.34 	support services to persons with mental 
141.35 	illness under Minnesota Statutes, sections 
142.1 	268A.13 and 268A.14. Up to $77,000 each 
142.2 	year may be used for administrative and 
142.3 	salary expenses. 
142.4 	(f) $2,440,000 the first year and $2,440,000 
142.5 	the second year are from the general 
142.6 	fund for grants under Minnesota Statutes, 
142.7 	section 268A.11, for the eight centers 
142.8 	for independent living. The base for this 
142.9 	program is $2,440,000 each year in fiscal 
142.10 	years 2010 and 2011. Money not expended 
142.11 	the first year is available the second year. 
142.12 	The commissioner must: 
142.13 	(1) transfer $115,000 of federal independent 
142.14 	living Part B rehabilitation services funds 
142.15 	to the Minnesota Centers for Independent 
142.16 	Living each year contingent upon the 
142.17 	availability of federal funds under Title VII, 
142.18 	Part B, of the Federal Rehabilitation Act of 
142.19 	1973 as amended under United States Code, 
142.20 	title 29, section 711(c), and approved by the 
142.21 	Statewide Independent Living Council; 
142.22 	(2) replace federal Part B funds in the 
142.23 	State Independent Living Council budget 
142.24 	transferred under clause (1) with $115,000 
142.25 	of Social Security Administration program 
142.26 	income funds each year; and 
142.27 	(3) provide an additional $185,000 each year 
142.28 	from the Social Security Administration 
142.29 	program income to the Minnesota Centers for 
142.30 	Independent Living to be allocated equally 
142.31 	among the eight centers. 
142.32 	Additional funding for centers for 
142.33 	independent living under clauses (1) and (3) 
142.34 	must be used for core independent living 
142.35 	services by the Centers for Independent 
143.1 	Living. The Statewide Independent Living 
143.2 	Council framework for statewide distribution 
143.3 	of state and federal funding to the Minnesota 
143.4 	Centers for Independent Living does not 
143.5 	apply to the funds under clauses (1) and 
143.6 	(3). The commissioner must report on the 
143.7 	transfers in clauses (1), (2), and (3), and any 
143.8 	other effort to pursue additional funding for 
143.9 	the Centers for Independent Living to the 
143.10 	standing committees of the senate and house 
143.11 	of representatives having jurisdiction over 
143.12 	Centers for Independent Living by March 15 
143.13 	each year. 
143.14 	(g) $5,940,000 the first year and $5,940,000 
143.15 	the second year are from the general fund for 
143.16 	state services for the blind activities. 
143.17 	(h) $150,000 the first year and $150,000 
143.18 	the second year are from the general fund 
143.19 	and $175,000 the first year and $175,000 
143.20 	the second year are from the workforce 
143.21 	development fund for grants under Minnesota 
143.22 	Statutes, section 268A.03, to Rise, Inc. 
143.23 	for the Minnesota Employment Center for 
143.24 	People Who are Deaf or Hard-of-Hearing. 
143.25 	Money not expended the first year is 
143.26 	available the second year. 
143.27 	(i) $9,021,000 the first year and $9,021,000 
143.28 	the second year are from the general fund for 
143.29 	the state's vocational rehabilitation program 
143.30 	for people with significant disabilities to 
143.31 	assist with employment, under Minnesota 
143.32 	Statutes, chapter 268A. 
143.33 	(j) $350,000 the first year and $350,000 
143.34 	the second year are from the workforce 
143.35 	development fund for grants to provide 
144.1 	interpreters for a regional transition program 
144.2 	that specializes in providing culturally 
144.3 	appropriate transition services leading to 
144.4 	employment for deaf, hard-of-hearing, and 
144.5 	deaf-blind students. This amount must be 
144.6 	added to the department's base. 
144.7 	(k) $150,000 the first year and $150,000 the 
144.8 	second year are for a grant to Advocating 
144.9 	Change Together for training, technical 
144.10 	assistance, and resources materials to persons 
144.11 	with developmental and mental illness 
144.12 	disabilities. 
144.13 	(l) $250,000 the first year and $250,000 
144.14 	the second year are from the workforce 
144.15 	development fund and $150,000 the first 
144.16 	year and $100,000 the second year are from 
144.17 	the general fund for a grant to Lifetrack 
144.18 	Resources for its immigrant and refugee 
144.19 	collaborative programs, including those 
144.20 	related to job-seeking skills and workplace 
144.21 	orientation, intensive job development, 
144.22 	functional work English, and on-site job 
144.23 	coaching. $50,000 of the first year general 
144.24 	fund appropriation is for a onetime pilot 
144.25 	Lifetrack project in Rochester. 
144.26 	(m) $75,000 the first year and $75,000 the 
144.27 	second year are from the general fund and 
144.28 	$1,000,000 the first year and $1,000,000 
144.29 	the second year are from the workforce 
144.30 	development fund for the youthbuild 
144.31 	program under Minnesota Statutes, sections 
144.32 	116L.361 to 116L.366. This appropriation 
144.33 	may be used for: 
144.34 	(1) restoring the three youthbuild programs 
144.35 	that were eliminated due to budget reductions 
145.1 	and adding seven more youthbuild programs 
145.2 	statewide; 
145.3 	(2) restoring funding levels for all youthbuild 
145.4 	programs plus an inflationary increase for 
145.5 	each program; 
145.6 	(3) increasing the number of at-risk youth 
145.7 	served by the youthbuild programs from 260 
145.8 	youth per year to 500 youth per year; and 
145.9 	(4) restoring the youthbuild focus on careers 
145.10 	in technology and adding a youthbuild focus 
145.11 	on careers in the medical field. 
145.12 	(n) $1,325,000 each year is from the 
145.13 	workforce development fund for grants 
145.14 	to fund summer youth employment in 
145.15 	Minneapolis. The grants shall be used to 
145.16 	fund up to 500 jobs for youth each summer. 
145.17 	Of this appropriation, $325,000 each year is 
145.18 	for a grant to the learn-to-earn summer youth 
145.19 	employment program. The commissioner 
145.20 	shall establish criteria for awarding the 
145.21 	grants. This appropriation is available in 
145.22 	either year of the biennium and is available 
145.23 	until spent. 
145.24 	(o) $600,000 the first year and $600,000 
145.25 	the second year are from the workforce 
145.26 	development fund for a grant to the city of 
145.27 	St. Paul for grants to fund summer youth 
145.28 	employment in St. Paul. The grants shall be 
145.29 	used to fund up to 500 jobs for youth each 
145.30 	summer. The commissioner shall establish 
145.31 	criteria for awarding the grants within the 
145.32 	city of St. Paul. This appropriation is 
145.33 	available in either year of the biennium and 
145.34 	is available until spent. 
146.1 	(p) $250,000 the first year and $250,000 the 
146.2 	second year are from the general fund for 
146.3 	grants to Northern Connections in Perham 
146.4 	to implement and operate a pilot workforce 
146.5 	program that provides one-stop supportive 
146.6 	services to individuals as they transition into 
146.7 	the workforce. 
146.8 	(q) $100,000 each year is for a grant to 
146.9 	Ramsey County Workforce Investment Board 
146.10 	for the development of the building lives 
146.11 	program. This is a onetime appropriation. * 
146.12 	(The preceding text beginning "(q) $100,000 
146.13 	each year is for" was indicated as vetoed by 
146.14 	the governor.) 
146.15 	(r) $150,000 each year is for a grant to the 
146.16 	Hennepin-Carver Workforce Investment 
146.17 	Board (WIB) to coordinate with the Partners 
146.18 	for Progress Regional Skills Consortium 
146.19 	to provide employment and training as 
146.20 	demonstrated by the Twin Cities regional 
146.21 	health care training partnership project. * 
146.22 	(The preceding text beginning "(r) $150,000 
146.23 	each year is for" was indicated as vetoed by 
146.24 	the governor.) 
146.25 	(s) $160,000 the first year is for a onetime 
146.26 	grant to Workforce Development, Inc., for 
146.27 	a pilot project to provide demand-driven 
146.28 	employment and training services to 
146.29 	welfare recipients and other economically 
146.30 	disadvantaged populations in Mower, 
146.31 	Freeborn, Dodge, and Steele Counties. 
146.32 	(t) $200,000 the first year and $200,000 the 
146.33 	second year are from the general fund for 
146.34 	a grant to HIRED to operate its industry 
146.35 	sector training initiatives, which provide 
147.1 	employee training developed in collaboration 
147.2 	with employers in specific, high-demand 
147.3 	industries. * (The preceding text beginning 
147.4 	"(t) $200,000 the first year" was indicated as 
147.5 	vetoed by the governor.) 
147.6 	(u) $100,000 the first year is for a onetime 
147.7 	grant to a nonprofit organization. The 
147.8 	nonprofit organization must work on behalf 
147.9 	of all licensed vendors to coordinate their 
147.10 	efforts to respond to solicitations or other 
147.11 	requests from private and governmental units 
147.12 	as defined in Minnesota Statutes, section 
147.13 	471.59, subdivision 1, in order to increase 
147.14 	employment opportunities for persons with 
147.15 	disabilities. This appropriation is available 
147.16 	until June 30, 2009.
147.17 	(v) $3,500,000 each year from the workforce 
147.18 	development fund is for the Minnesota youth 
147.19 	program under Minnesota Statutes, sections 
147.20 	116L.56 and 116L.561. 
147.21 	(w) $1,000,000 each year from the workforce 
147.22 	development fund is for a grant to the 
147.23 	Minnesota Alliance of Boys and Girls 
147.24 	Clubs to administer a statewide project 
147.25 	of youth job skills development. This 
147.26 	project, which may have career guidance 
147.27 	components, including health and life skills, 
147.28 	is to encourage, train, and assist youth in 
147.29 	job-seeking skills, workplace orientation, 
147.30 	and job site knowledge through coaching. 
147.31 	This grant requires a 25 percent match from 
147.32 	nonstate resources. 
147.33 	(x) $10,000 the first year is for a study on 
147.34 	ways to promote employment opportunities 
147.35 	for minorities, with a particular focus on 
148.1 	opportunities for African Americans, in 
148.2 	the state of Minnesota. The study should 
148.3 	focus on how to significantly expand the job 
148.4 	training available to minorities and promote 
148.5 	substantial increases in the wages paid to 
148.6 	minorities, at least to a rate well above living 
148.7 	wage, and within several years, to equality. 
148.8 	The commissioner must report on the study 
148.9 	to the governor and the chair of the finance 
148.10 	committee in each house of the legislature 
148.11 	that has jurisdiction over employment by 
148.12 	January 15, 2008, with recommendations for 
148.13 	implementing the findings. 
148.14 	(y) The commissioner must provide funding 
148.15 	for the Minnesota Conservation Corps to 
148.16 	provide learning stipends for deaf students 
148.17 	and wages for interpreters participating in 
148.18 	the MCC summer youth program. 

148.19 	Sec. 55. BIOMASS HEATING GRANTS AND LOANS PILOT PROJECT.
 148.20 	Within the limits of appropriations, the commissioner of the Department of 
148.21 	Employment and Economic Development shall make grants and loans for costs related 
148.22 	to the installation of an approved biomass heating project in a publicly owned facility, 
148.23 	including K-12 public schools, higher education buildings, and buildings owned by a 
148.24 	local unit of government. The commissioner must approve biomass heating projects that 
148.25 	produce energy for heating air or water using organic matter available on a renewable 
148.26 	basis, including but not limited to agricultural crops, grasses and trees, or wood production 
148.27 	or other waste. Applications for a grant or loan under this section must be made to the 
148.28 	commissioner on the forms and according to the timeline prescribed by the commissioner. 
148.29 	At a minimum, the commissioner must require sufficient information on the applications 
148.30 	to determine that the physical condition of the publicly owned facility is sufficient to 
148.31 	support the efficient operation of the biomass heating project and that the projected 
148.32 	cumulative energy cost savings are adequate relative to the costs of the investment. 
148.33 	The grant and loan may each provide up to 50 percent of the total installed costs of the 
148.34 	biomass heating projects.

149.1 	Sec. 56. HARDSHIP PAYMENTS.
 149.2 		Subdivision 1.Payments; availability. Hardship payments are available to 
149.3 	an applicant if the applicant suffered economic hardship due to delays in receiving 
149.4 	unemployment benefits resulting from the new unemployment insurance application 
149.5 	and filing system implemented by the Department of Employment and Economic 
149.6 	Development on October 15, 2007.
149.7 		Subd. 2.Economic hardship. "Economic hardship" means financial losses to 
149.8 	an applicant resulting from: checks returned for insufficient funds; account overdraft 
149.9 	charges; installment credit penalties, interest, and other fees resulting from missed or 
149.10 	late payments; mortgage loan late fees, interest charges, or other penalties; charges for 
149.11 	force-placed automobile or homeowner's insurance; penalties for late payment of income 
149.12 	or property taxes; and any penalties or adverse consequences, including the suspension of 
149.13 	an applicant's driver's license due to nonpayment of child support.
149.14 		Subd. 3.Payment from administration account. Hardship payments are payable 
149.15 	from the unemployment insurance administration account under Minnesota Statutes, 
149.16 	section 268.196.
149.17 		Subd. 4.Eligibility conditions. An applicant is eligible to receive hardship 
149.18 	payments under this section if the applicant's unemployment benefit payments due and 
149.19 	payable after October 15, 2007, were delayed at least four weeks.
149.20 		Subd. 5.Amount of hardship payments. The amount of hardship payments 
149.21 	available to an applicant is equal to the amount of economic hardship experienced by an 
149.22 	applicant due to the delay in receiving unemployment benefits. An applicant must provide 
149.23 	documentation of the amount of financial hardship claimed using financial institution 
149.24 	records, consumer or business credit records, child support records, or other commonly 
149.25 	recognized methods of documenting financial transactions.
149.26 		Subd. 6.Notice. The commissioner must notify applicants of the availability of 
149.27 	hardship payments by posting a notice on the department's official Web site, by notifying 
149.28 	applicants by individual mailing where department records show the applicant may be 
149.29 	eligible under subdivision 4, and by any other appropriate announcement.

149.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.31 	Sec. 57. LUMBER COMPANY EXTRA BENEFITS.
 149.32 		Subdivision 1.Extra benefits; availability. Extra unemployment benefits are 
149.33 	available to an applicant if the applicant was laid off due to lack of work from the 
149.34 	Ainsworth Lumber Company plants in Cook.
150.1 		Subd. 2.Payment from fund; effect on employer. Extra unemployment benefits 
150.2 	are payable from the unemployment insurance trust fund. Extra unemployment benefits 
150.3 	paid under this section will not be used in computing the experience rating of Ainsworth 
150.4 	Lumber Company under Minnesota Statutes, section 268.047.
150.5 		Subd. 3.Eligibility conditions. An applicant is eligible to receive extra 
150.6 	unemployment benefits under this section for any week through December 31, 2008, 
150.7 	following the effective date of the applicant's benefit account of regular unemployment 
150.8 	benefits, as a result of a layoff described under subdivision 1, if:
150.9 	(1) a majority of the applicant's wage credits were with Ainsworth Lumber Company 
150.10 	or Ainsworth Engineered;
150.11 	(2) the applicant meets the eligibility requirements of Minnesota Statutes, section 
150.12 	268.085;
150.13 	(3) the applicant is not subject to a disqualification under Minnesota Statutes, section 
150.14 	268.095;
150.15 	(4) the applicant is not entitled to regular unemployment benefits and the applicant 
150.16 	is not entitled to receive unemployment benefits under any other state or federal law 
150.17 	for that week; and
150.18 	(5) the applicant is enrolled in, or has within the last two weeks successfully 
150.19 	completed, a program that qualifies as reemployment assistance training under Minnesota 
150.20 	Statutes, section 268.035, subdivision 21a, except that an applicant whose training is 
150.21 	scheduled to begin in more than 30 days may be considered to be in training if:  (i) the 
150.22 	applicant's chosen training program does not offer an available start date within 30 days; 
150.23 	(ii) the applicant is scheduled to begin training on the earliest available start date for 
150.24 	the chosen training program; and (iii) the applicant is scheduled to begin training in no 
150.25 	more than 60 days.
150.26 		Subd. 4.Weekly amount of extra benefits. The weekly extra unemployment 
150.27 	benefits amount available to an applicant is the same as the applicant's weekly regular 
150.28 	unemployment benefit amount on the benefit account established as a result of a layoff 
150.29 	under subdivision 1.
150.30 		Subd. 5.Maximum amount of extra unemployment benefits. (a) The maximum 
150.31 	amount of extra unemployment benefits available is equal to 13 weeks at the applicant's 
150.32 	weekly extra unemployment benefits amount.
150.33 	(b) If an applicant qualifies for a new regular benefit account under Minnesota 
150.34 	Statutes, section 268.07, at any time after exhausting regular unemployment benefits 
150.35 	as a result of the layoff under subdivision 1, the applicant must apply for and exhaust 
150.36 	entitlement to those new regular unemployment benefits. The maximum amount of extra 
151.1 	unemployment benefits available is reduced by any new regular unemployment benefits 
151.2 	available if the majority of wage credits on that new regular benefit account were with 
151.3 	Ainsworth Lumber Company or Ainsworth Engineered.
151.4 		Subd. 6.Program expiration. This extra unemployment benefit program expires 
151.5 	on December 31, 2008. No extra unemployment benefits may be paid for any week after 
151.6 	the expiration of this program.
151.7 		Subd. 7.Findings. The legislature finds that providing extra unemployment 
151.8 	benefits to assist laid-off workers of Ainsworth Lumber Company, while in training, is 
151.9 	appropriate because:
151.10 	(1) the unemployment rate in the applicant's county of employment is higher than 
151.11 	the statewide average rate of unemployment;
151.12 	(2) the average weekly wages paid in the applicant's county of employment is below 
151.13 	the statewide average weekly wage;
151.14 	(3) the applicant's weekly wage is higher than the statewide average weekly wage; 
151.15 	and
151.16 	(4) the dislocated worker program has determined that the applicant does not 
151.17 	currently possess skills making reemployment in a comparable position likely.

151.18 	EFFECTIVE DATE. This section is effective the day following final enactment 
151.19 	and applies retroactively from January 1, 2008.

151.20 	Sec. 58. UNEMPLOYMENT BENEFITS; CONTINUED REQUEST TIME 
151.21 	PERIOD WAIVER.
 151.22 	Notwithstanding any other law to the contrary, the commissioner must accept initial 
151.23 	and continued requests for unemployment benefits and pay unemployment benefits to 
151.24 	an applicant who currently resides in Hubbard County and applied for unemployment 
151.25 	benefits on September 15, 2006, and had an account dated September 10, 2006:
151.26 	(1) was employed as a technician or inspector for Northwest Airlines, Inc., prior 
151.27 	to August 20, 2005;
151.28 	(2) stopped working on or about August 20, 2005, because of a labor dispute between 
151.29 	the Aircraft Mechanics Fraternal Association (AMFA) and Northwest Airlines, Inc.;
151.30 	(3) did not file an initial or continued requests for unemployment benefits within the 
151.31 	time periods required under Minnesota Statutes, chapter 268; and
151.32 	(4) meets all the other requirements for the payment of unemployment benefits 
151.33 	under Minnesota Statutes, section 268.069, subdivision 2.
151.34 	Any unemployment benefits paid under the account established September 10, 2006, 
151.35 	shall be deducted from the total benefits authorized under this section.

152.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
152.2 	and applies retroactively from August 21, 2005.

152.3 	Sec. 59. OFFICE OF SCIENCE AND TECHNOLOGY.
 152.4 		Subdivision 1.Establishment. An Office of Science and Technology is established 
152.5 	in the Department of Employment and Economic Development to do the following: 
152.6 	(1) coordinate public and private efforts to procure federal funding for collaborative 
152.7 	research and development projects of primary benefit to small and medium-sized 
152.8 	businesses;
152.9 	(2) promote contractual relationships between Minnesota businesses that are 
152.10 	recipients of federal grants and prime contractors, and Minnesota-based subcontractors; 
152.11 	(3) work with Minnesota nonprofit institutions including the University of 
152.12 	Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting 
152.13 	collaborative efforts to respond to federal funding opportunities;
152.14 	(4) develop a framework for Minnesota companies to establish sole-source 
152.15 	relationships with federal agencies; and
152.16 	(5) coordinate workshops, assistance with business proposals, licensing, intellectual 
152.17 	property protection, commercialization, and government auditing with the University of 
152.18 	Minnesota and Minnesota State Colleges and Universities.
152.19 	For the purposes of this section, "office" means the Office of Science and Technology 
152.20 	established in this subdivision.
152.21 		Subd. 2.Technology partnering with a prime contractor. The office must 
152.22 	develop a program to assist small businesses competing for a small business innovation 
152.23 	research award by matching the applicant with a larger company. Prime contractors are 
152.24 	matched to small businesses through a prescreening process that may result in a letter of 
152.25 	support for the applicant designed to increase the chance of receiving a Small Business 
152.26 	Innovation Research (SBIR) award.
152.27 		Subd. 3.Collaborate to commercialize. The office must develop a program to use 
152.28 	the federal high-risk research and development investment program to encourage the 
152.29 	development of new technologies, products, and business development and to reduce 
152.30 	development risks by encouraging alliances between medium-sized companies and 
152.31 	innovative small businesses.
152.32 		Subd. 4.Technology matchmaking. The office must assist businesses in 
152.33 	identifying qualified suppliers and vendors through a program to serve as a conduit for 
152.34 	Minnesota-based companies to network with firms able to support their success. Firms 
153.1 	outside Minnesota can participate in the technology matchmaking network if one of the 
153.2 	participating companies is located in Minnesota.
153.3 		Subd. 5.Commercialization assistance. The office must provide 
153.4 	commercialization assistance to Minnesota firms that have received a Phase I Small 
153.5 	Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer 
153.6 	(STTR) award and are submitting a Phase II proposal. Local service providers must assist 
153.7 	the applicant with developing and reviewing the required commercialization plan prior to 
153.8 	Phase II submission. The office may provide SBIR Phase I proposal technical review.
153.9 		Subd. 6.Report. The commissioner of employment and economic development 
153.10 	must report to the committees in the house of representatives and senate having 
153.11 	jurisdiction over bioscience and technology issues on the activities of the Office of Science 
153.12 	and Technology by June 30 of each year.

153.13 	Sec. 60. BIOSCIENCE SUBSIDY.
 153.14 	Any bioscience or biotechnology project financed in whole or in part by state 
153.15 	appropriations or other public subsidies must document how and to what it extent the 
153.16 	project will provide a benefit to consumers in the form of more affordable pricing of the 
153.17 	products or services being publicly subsidized. The documentation must be reported to 
153.18 	the committees of the legislature with responsibility for economic development and to 
153.19 	committees with responsibility for finance.

153.20 	Sec. 61. 2009 DISTRIBUTIONS ONLY; TACONITE PRODUCTION TAX.
 153.21 	(a) For 2007 production, distribution in 2008 only, two cents per taxable ton of 
153.22 	the taconite production tax under Minnesota Statutes, chapter 298, must be paid to the 
153.23 	Hibbing Economic Development Authority to retire bonds and for economic development 
153.24 	purposes.
153.25 	(b) For 2007 production, distribution in 2008 only, 0.25 cents per taxable ton of 
153.26 	the taconite production tax under Minnesota Statutes, chapter 298, must be paid to the 
153.27 	St. Louis County school board to study the potential for and impact of consolidation and 
153.28 	streamlining the operations of the St. Louis County school district No. 2142.
153.29 	(c) For 2007 production, distribution in 2008 only, 0.25 cents per taxable ton of the 
153.30 	taconite production tax under Minnesota Statutes, chapter 298, must be paid to Grand 
153.31 	Rapids, for industrial park work.
153.32 	(d) For 2007 production, distribution in 2008 only, 0.65 cents per taxable ton of the 
153.33 	taconite production tax under Minnesota Statutes, chapter 298, must be paid to Aitkin, 
153.34 	for sewer and water for housing projects.
154.1 	(e) For 2007 production, distribution in 2008 only, 0.5 cents per taxable ton of the 
154.2 	taconite production tax under Minnesota Statutes, chapter 298,  must be paid to Crosby, for 
154.3 	well and water tower infrastructure.

154.4 	Sec. 62.  REPEALER.
 154.5 	(a) Minnesota Statutes 2006, section 341.31, and Laws 2004, chapter 188, section 
154.6 	2, are repealed.
154.7 	(b) Minnesota Statutes 2006, section 298.28, subdivision 9a, is repealed for 2008 
154.8 	production, distributions in 2009 and thereafter.

154.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

154.10 	ARTICLE 5
154.11 	ENVIRONMENT AND NATURAL RESOURCES

154.12	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
154.13 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
154.14 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 57, article 1, to 
154.15 	the agencies and for the purposes specified in this article. The appropriations are from the 
154.16 	general fund, or another named fund, and are available for the fiscal years indicated for 
154.17 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
154.18 	to or subtraction from the appropriation listed under them is available for the fiscal year 
154.19 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
154.20 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
154.21 	day following final enactment.

154.22			2008
		2009
		Total
	
154.23	General
	$
	-0-
	$
	(3,348,000)
	$
	(3,348,000)
	
154.24	Environmental
		-0-
		134,000
		134,000
	
154.25	Natural Resources
		-0-
		1,582,000
		1,582,000
	
154.26	Game and Fish
		144,000
		767,000
		911,000
	
154.27	Total
	$
	144,000
	$
	(865,000)
	$
	(721,000)

154.28				APPROPRIATIONS
	
154.29				Available for the Year
	
154.30				Ending June 30
	
154.31					2008
		2009

154.32	Sec. 2. POLLUTION CONTROL AGENCY
 	$
	-0-
		(469,000)

155.1	Appropriations by Fund
	
155.2	General
	-0-
	(603,000)
	
155.3	Environmental Fund
	-0-
	134,000
	
155.4 	$623,000 is a reduction in fiscal year 2009. 
155.5 	The commissioner shall make the reduction 
155.6 	to administrative activities in such a way to 
155.7 	minimize the effect to program operations.
155.8 	$134,000 in fiscal year 2009 is appropriated 
155.9 	from the environmental fund for the 
155.10 	development and adoption of rules to 
155.11 	regulate emission standards of motor 
155.12 	vehicles sold in this state as authorized under 
155.13 	the federal Clean Air Act, United States 
155.14 	Code, title 42, section 7507. The base for 
155.15 	fiscal year 2010 is $114,000.
155.16 	$20,000 in fiscal year 2009 is appropriated 
155.17 	from the general fund for the following 
155.18 	purposes:
155.19 	(1) the development of recommendations 
155.20 	for establishing a comprehensive product 
155.21 	stewardship approach to reducing 
155.22 	environmental and health risks posed by 
155.23 	the use or disposal of products. These 
155.24 	recommendations shall be submitted to 
155.25 	the chairs and ranking minority members 
155.26 	of the senate and house committees with 
155.27 	jurisdiction over environmental policy 
155.28 	and environmental finance by January 
155.29 	15, 2009. The recommendations shall 
155.30 	include, at a minimum: a set of criteria to 
155.31 	be used to evaluate products proposed for 
155.32 	product stewardship solutions; a process for 
155.33 	designating products for product stewardship 
155.34 	solutions and the role the legislature would 
155.35 	play in that process; typical components 
156.1 	of product stewardship plans; options to 
156.2 	facilitate the creation of industry-managed 
156.3 	stewardship management organizations; 
156.4 	methods to identify and monitor progress 
156.5 	toward stewardship performance goals for 
156.6 	specific products; and strategies to implement 
156.7 	the use of standards, certifications, and 
156.8 	eco-labels to promote environmentally 
156.9 	preferable products. To the extent possible, 
156.10 	the recommendations must be consistent 
156.11 	with existing product stewardship programs 
156.12 	in North America. In developing the 
156.13 	recommendations, the commissioner must 
156.14 	consult with manufacturers, retailers, 
156.15 	recyclers, environmental advocacy 
156.16 	organizations, local units of government, and 
156.17 	other interested parties;
156.18 	(2) a report to be submitted by December 
156.19 	1, 2008, to the chairs and ranking minority 
156.20 	members of the senate and house committees 
156.21 	with primary jurisdiction over solid waste 
156.22 	policy, analyzing the availability of collection 
156.23 	and processing capacity in the seven-county 
156.24 	metropolitan area for the recycling of 
156.25 	construction and demolition waste. The 
156.26 	report must recommend a percentage of the 
156.27 	total weight of construction and demolition 
156.28 	waste generated in the seven-county 
156.29 	metropolitan area that represents an 
156.30 	achievable but aggressive recycling goal that 
156.31 	can be reached in 2012 and must include an 
156.32 	analysis of the economic and environmental 
156.33 	costs and benefits of reaching that goal; and
156.34 	(3) a report to be submitted by January 1, 
156.35 	2009, to the chairs and ranking minority 
156.36 	members of the senate and house committees 
157.1 	with primary jurisdiction over solid waste 
157.2 	policy, that recommends options for 
157.3 	achieving the following goals by 2020: an 
157.4 	increase in county recycling rates to 60 
157.5 	percent of the weight of total solid waste 
157.6 	generation; and the diversion, prior to 
157.7 	delivery to landfills and waste-to-energy 
157.8 	plants, and recycling and reuse of an amount 
157.9 	of source-separated compostable materials 
157.10 	equal to 15 percent of total solid waste 
157.11 	generation. The commissioner must obtain 
157.12 	input from counties inside and outside the 
157.13 	seven-county metropolitan area, recycling 
157.14 	and composting facilities, waste haulers, 
157.15 	environmental organizations, and other 
157.16 	interested parties in preparing the report. 
157.17 	The report must also contain estimates of 
157.18 	the economic costs of implementing the 
157.19 	strategies.
157.20 	$750,000 of the appropriation under Laws 
157.21 	2007, chapter 57, article 1, section 3, from 
157.22 	the environmental fund in fiscal year 2009 
157.23 	for regulatory services is contingent upon the 
157.24 	agency recovering in fees $750,000 for these 
157.25 	services by July 1, 2009.

157.26	Sec. 3. NATURAL RESOURCES

157.27	Subdivision 1.Total Appropriation
 	$
	144,000
	$
	(78,000)

157.28	Appropriations by Fund
	
157.29	General
	-0-
	(2,265,000)
	
157.30	Natural Resources
	-0-
	1,420,000
	
157.31	Game and Fish
	144,000
	767,000
	
157.32 	The amounts reduced from the appropriations 
157.33 	in Laws 2007, chapter 57, article 1, section 4, 
157.34 	are specified in the following subdivisions.

157.35	Subd. 2.Lands and Minerals
 		-0-
		(225,000)
	
158.1 	$425,000 in fiscal year 2009 is a reduction in 
158.2 	the lands and minerals budget. This is a base 
158.3 	reduction.
158.4 	$124,000 of this reduction is from the 
158.5 	appropriation for iron ore cooperative 
158.6 	agreements.
158.7 	$200,000 in fiscal year 2009 is appropriated 
158.8 	from the natural resources fund for the 
158.9 	administration and monitoring of permits 
158.10 	to mine ferrous metals under Minnesota 
158.11 	Statutes, section 93.481. By January 15, 
158.12 	2009, the commissioner shall report to the 
158.13 	legislature and the chairs of the senate and 
158.14 	house committees with jurisdiction over 
158.15 	environment and natural resources finance 
158.16 	on the establishment of a permit to mine 
158.17 	application fee schedule that is based on 
158.18 	the actual costs of issuing and monitoring 
158.19 	individual permits and any necessary 
158.20 	legislation needed to cover the costs of 
158.21 	issuing and monitoring the permits for the 
158.22 	next biennium.

158.23	Subd. 3.Water Resource Management
 		-0-
		(253,000)
	
158.24 	$38,000 is a reduction in fiscal year 2009 
158.25 	attributable to the modification of reporting 
158.26 	requirements under Minnesota Statutes, 
158.27 	section 103A.43.

158.28	Subd. 4.Forest Management
 		-0-
		250,000
	
158.29 	$53,000 in fiscal year 2009 is for a grant to the 
158.30 	Forest Resources Council to conduct a study 
158.31 	of options and make recommendations to the 
158.32 	legislature for addressing the fragmentation 
158.33 	and parcelization of large blocks of private 
158.34 	forest land in the state. This is a onetime 
158.35 	appropriation.
159.1 	$197,000 in fiscal year 2009 is for a grant 
159.2 	to the University of Minnesota for the 
159.3 	Interagency Information Cooperative to 
159.4 	develop a common forest inventory format 
159.5 	describing key attributes of Minnesota's 
159.6 	public forest land base, growth models for 
159.7 	managed forest stands, a forest wildlife 
159.8 	habitat model format, and an information 
159.9 	database on the state's family forest 
159.10 	ownership.

159.11	Subd. 5.Parks and Recreation Management
 		-0-
		-0-
	
159.12 	$220,000 is a reduction in fiscal year 2009 in 
159.13 	the parks and recreation management budget.
159.14 	Beginning in 2009, $220,000 each year is 
159.15 	from the state park account in the natural 
159.16 	resources fund to fund state park operations, 
159.17 	maintenance, resource management, 
159.18 	educational services, and associated support 
159.19 	costs.

159.20	Subd. 6.Trails and Waterways Management
 		-0-
		1,000,000
	
159.21 	Beginning in 2009, $300,000 each year is 
159.22 	from the all-terrain vehicle account in the 
159.23 	natural resources fund for monitoring and 
159.24 	maintenance of newly designated trails.
159.25 	$700,000 in fiscal year 2009 from the natural 
159.26 	resource fund to the commissioner of natural 
159.27 	resources for the development of the Virginia 
159.28 	site and connecting trails for the Iron Range 
159.29 	Off-Highway Vehicle Recreation Area. Of 
159.30 	this amount, $400,000 is from the all-terrain 
159.31 	vehicle account, $75,000 is from the 
159.32 	off-highway motorcycle account, $125,000 
159.33 	is from the off-road vehicle account, and 
159.34 	$100,000 is from the snowmobile trails 
159.35 	and enforcement account. $300,000 is 
160.1 	from federal money allocated for motorized 
160.2 	recreation. This is a onetime appropriation. 
160.3 	The appropriation is available until expended 
160.4 	for the design and development of an 
160.5 	underpass for off-highway vehicles on 
160.6 	Highway 135 in the city of Gilbert. None 
160.7 	of these funds may be expended until all 
160.8 	property as identified in the master plan has 
160.9 	been acquired.

160.10	Subd. 7.Fish and Wildlife Management
 		144,000
		140,000
	
160.11 	$427,000 is a reduction in fiscal year 2009 in 
160.12 	the fish and wildlife program. The base for 
160.13 	this appropriation in fiscal years 2010 and 
160.14 	2011 is reduced by $539,000 each year.
160.15 	$200,000 is a reduction in fiscal year 2009 
160.16 	from the appropriation for prairie wetland 
160.17 	complexes. $200,000 is appropriated from 
160.18 	the game and fish fund in fiscal year 2009 for 
160.19 	prairie wetland complexes.
160.20 	$123,000 in fiscal year 2008 and $246,000 
160.21 	each year thereafter is from the game and fish 
160.22 	fund to implement fish virus surveillance, 
160.23 	prepare infrastructure to handle possible 
160.24 	outbreaks, and implement control procedures 
160.25 	for highest risk waters and fish production 
160.26 	operations.
160.27 	$21,000 in fiscal year 2009 is from the game 
160.28 	and fish fund and is added to the base for the 
160.29 	aquatic farm permitting program.
160.30 	$300,000 in fiscal year 2009 is from the 
160.31 	game and fish fund to study, predesign, 
160.32 	and design shooting sports facilities at the 
160.33 	Vermillion Highlands Wildlife Management 
160.34 	Area authorized by Laws 2007, chapter 57, 
160.35 	article 1, section 168.

161.1	Subd. 8.Ecological Services
 		-0-
		(230,000)
	
161.2 	$230,000 in fiscal year 2009 is a reduction 
161.3 	from the appropriation for impaired waters.
161.4 	The project wild program base is reduced for 
161.5 	fiscal years 2010 and 2011 by $20,000.
161.6 	By June 30, 2008, $594,000 shall be 
161.7 	transferred from the water recreation account 
161.8 	in the natural resources fund to the invasive 
161.9 	species account in the natural resources fund 
161.10 	for invasive species-related expenses.

161.11	Subd. 9.Enforcement
 		-0-
		(160,000)
	
161.12 	$160,000 is a reduction in fiscal year 2009 in 
161.13 	the enforcement budget.

161.14	Subd. 10.Operations Support
 		-0-
		(600,000)
	
161.15 	$600,000 is a reduction to the department's 
161.16 	administration costs in fiscal year 2009. The 
161.17 	commissioner shall make these reductions 
161.18 	throughout the agency through reduction 
161.19 	in travel, administrative costs, and vacancy 
161.20 	management.

161.21
161.22	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	-0-
	$
	(318,000)
	
161.23 	$550,000 is a reduction in fiscal year 2009 
161.24 	from the appropriation for cost-sharing 
161.25 	contracts to establish native buffers.
161.26 	$100,000 is a reduction in fiscal year 
161.27 	2009 from the appropriation for county 
161.28 	cooperative weed management programs.
161.29 	$68,000 is a reduction in fiscal year 2009 
161.30 	from the appropriation for the drainage 
161.31 	assistance program.
162.1 	$100,000 is a reduction in fiscal year 2009 
162.2 	from the appropriation for grants to basin 
162.3 	management organizations.
162.4 	$450,000 in fiscal year 2009 is for 
162.5 	implementing rehabilitation, erosion, and 
162.6 	sediment control projects in the area included 
162.7 	in DR-1717. Up to 20 percent of this 
162.8 	appropriation may be used by the board to 
162.9 	implement the program. The appropriation is 
162.10 	available until expended. The base for 2010 
162.11 	is $275,000. The base for 2011 is $0.
162.12 	$50,000 in fiscal year 2009 is for the star lake 
162.13 	and river program. The base for fiscal year 
162.14 	2010 is $100,000.

162.15	Sec. 5. METROPOLITAN COUNCIL
 	$
	-0-
	$
	-0-
	
162.16 	$162,000 in fiscal year 2009 is reduced 
162.17 	from money appropriated from the general 
162.18 	fund for metropolitan area regional parks 
162.19 	maintenance and operations under Laws 
162.20 	2007, chapter 57, article 1, section 6. The 
162.21 	base for fiscal years 2010 and 2011 is reduced 
162.22 	by $162,000 each year.
162.23 	$162,000 in fiscal year 2009 is appropriated 
162.24 	from the natural resources fund for 
162.25 	metropolitan area regional parks maintenance 
162.26 	and operations. This appropriation is from 
162.27 	the revenue deposited in the natural resources 
162.28 	fund under Minnesota Statutes, section 
162.29 	297A.94, paragraph (e), clause (3).

162.30 	Sec. 6. Laws 2007, chapter 57, article 1, section 4, subdivision 3, is amended to read:

162.31	Subd. 3. Water Resources Management
 		15,051,000 
		12,522,000 

163.1	Appropriations by Fund 
	
163.2	General 
	14,771,000 
	12,242,000 
	
163.3	Natural Resources 
	280,000 
	280,000 
	
163.4 	$310,000 the first year and $310,000
163.5 	$280,000 the second year are for grants 
163.6 	associated with the implementation of the 
163.7 	Red River mediation agreement. 
163.8 	$65,000 the first year and $65,000 the second 
163.9 	year are is for a grant to the Mississippi 
163.10 	Headwaters Board for up to 50 percent of 
163.11 	the cost of implementing the comprehensive 
163.12 	plan for the upper Mississippi within areas 
163.13 	under its jurisdiction. This is a onetime 
163.14 	appropriation.
163.15 	$5,000 the first year and $5,000 the second 
163.16 	year are for payment to the Leech Lake Band 
163.17 	of Chippewa Indians to implement its portion 
163.18 	of the comprehensive plan for the upper 
163.19 	Mississippi. 
163.20 	$200,000 the first year and $200,000
163.21 	$178,000 the second year are for the 
163.22 	construction of ring dikes under Minnesota 
163.23 	Statutes, section 103F.161. The ring dikes 
163.24 	may be publicly or privately owned. If the 
163.25 	appropriation in either year is insufficient, the 
163.26 	appropriation in the other year is available 
163.27 	for it. The base appropriation for fiscal year 
163.28 	2010 and later is $125,000 $105,000. 
163.29 	$2,250,000 $2,152,000 the first year is 
163.30 	to support the identification of impaired 
163.31 	waters and develop plans to address those 
163.32 	impairments, as required by the federal Clean 
163.33 	Water Act, in accordance with Minnesota 
163.34 	Statutes, chapter 114D. This is a onetime 
163.35 	appropriation. 
164.1 	By January 15, 2008, the commissioner shall 
164.2 	commence rulemaking under Minnesota 
164.3 	Statutes, chapter 14, to update the minimum 
164.4 	shoreland standards in Minnesota Rules, 
164.5 	chapter 6120. 
164.6 	$60,000 the first year is a onetime 
164.7 	appropriation to the commissioner of natural 
164.8 	resources to conduct a feasibility study 
164.9 	in conjunction with U.S. Army Corps of 
164.10 	Engineers on the foundation and hydraulics 
164.11 	of the Rapidan Dam in Blue Earth County. 
164.12 	This appropriation must be equally matched 
164.13 	by Blue Earth County, and is available until 
164.14 	expended. 
164.15 	$500,000 in fiscal year 2008 is for addressing 
164.16 	surface and groundwater issues related to 
164.17 	the development and expansion of ethanol 
164.18 	production. 

164.19 	Sec. 7. Laws 2007, chapter 57, article 1, section 4, subdivision 4, is amended to read:

164.20	Subd. 4. Forest Management
 		44,495,000 
		43,393,000 

164.21	Appropriations by Fund 
	
164.22	General 
	24,755,000 
	24,836,000 
	
164.23	Natural Resources 
	19,483,000 
	18,293,000 
	
164.24	Game and Fish 
	257,000 
	264,000 
	
164.25 	$7,217,000 the first year and $7,217,000 
164.26 	the second year are for prevention, 
164.27 	presuppression, and suppression costs of 
164.28 	emergency firefighting and other costs 
164.29 	incurred under Minnesota Statutes, section 
164.30 	88.12. If the appropriation for either 
164.31 	year is insufficient to cover all costs of 
164.32 	presuppression and suppression, the amount 
164.33 	necessary to pay for these costs during the 
165.1 	biennium is appropriated from the general 
165.2 	fund. 
165.3 	By November 15 of each year, the 
165.4 	commissioner of natural resources shall 
165.5 	submit a report to the chairs of the house 
165.6 	and senate committees and divisions having 
165.7 	jurisdiction over environment and natural 
165.8 	resources finance, identifying all firefighting 
165.9 	costs incurred and reimbursements received 
165.10 	in the prior fiscal year. These appropriations 
165.11 	may not be transferred. Any reimbursement 
165.12 	of firefighting expenditures made to the 
165.13 	commissioner from any source other than 
165.14 	federal mobilizations shall be deposited into 
165.15 	the general fund. 
165.16 	$17,983,000 the first year and $18,293,000 
165.17 	the second year are from the forest 
165.18 	management investment account in the 
165.19 	natural resources fund for only the purposes 
165.20 	specified in Minnesota Statutes, section 
165.21 	89.039, subdivision 2. 
165.22 	Of this amount: 
165.23 	(1) $750,000 each year is for additional staff 
165.24 	to enhance timber sales; 
165.25 	(2) $1,000,000 each year is for forest 
165.26 	improvements; 
165.27 	(3) $1,100,000 each year is for forest road 
165.28 	maintenance; 
165.29 	(4) $600,000 each year is for the ecological 
165.30 	classification system on state forest lands; 
165.31 	(5) $350,000 each year is for the prevention 
165.32 	of invasive species on state forest lands; and 
165.33 	(6) $400,000 each year is for the re-inventory 
165.34 	of state forest lands. 
166.1 	Money for forest road maintenance is 
166.2 	onetime. 
166.3 	$780,000 the first year and $780,000 the 
166.4 	second year are for the Forest Resources 
166.5 	Council for implementation of the 
166.6 	Sustainable Forest Resources Act. 
166.7 	$40,000 the first year is for the Forest 
166.8 	Resources Council to provide a grant to 
166.9 	the University of Minnesota to prepare a 
166.10 	statewide plan to address the fragmentation 
166.11 	and parcelization of large blocks of forest 
166.12 	land in the state. 
166.13 	$200,000 in fiscal year 2008 is for a grant 
166.14 	to the Forest Resources Research Advisory 
166.15 	Committee to provide direction on research 
166.16 	topics recommended by the governor's task 
166.17 	force on the competitiveness of Minnesota's 
166.18 	primary forest products industry. 
166.19 	$350,000 the first year and $350,000 the 
166.20 	second year are for the FORIST timber 
166.21 	management information system, other 
166.22 	information systems, and for increased 
166.23 	forestry management. The amount in the 
166.24 	second year is also available in the first year. 
166.25 	$257,000 the first year and $264,000 the 
166.26 	second year are from the game and fish 
166.27 	fund to implement ecological classification 
166.28 	systems (ECS) standards on forested 
166.29 	landscapes. This appropriation is from 
166.30 	revenue deposited in the game and fish fund 
166.31 	under Minnesota Statutes, section 297A.94, 
166.32 	paragraph (e), clause (1). 
166.33 	$110,000 the first year is to develop and 
166.34 	implement a statewide information and 
166.35 	education campaign regarding the statewide 
167.1 	ban on the transport, storage, or use of 
167.2 	nonapproved firewood on state-administered 
167.3 	lands. 
167.4 	$1,500,000 the first year is from the forest 
167.5 	management investment account in the 
167.6 	natural resources fund for the purposes of 
167.7 	section 158. This is a onetime appropriation. 
167.8 	$75,000 the first year is to the Forest 
167.9 	Resources Council for a task force on 
167.10 	forest protection and $75,000 the second 
167.11 	year is appropriated to the commissioner 
167.12 	for grants to cities, counties, townships, 
167.13 	special recreation areas, and park and 
167.14 	recreation boards in cities of the first class 
167.15 	for the identification, removal, disposal, and 
167.16 	replacement of dead or dying shade trees 
167.17 	lost to forest pests or disease. For purposes 
167.18 	of this section, "shade tree" means a woody 
167.19 	perennial grown primarily for aesthetic or 
167.20 	environmental purposes with minimal to 
167.21 	residual timber value. The commissioner 
167.22 	shall consult with municipalities; park and 
167.23 	recreation boards in cities of the first class; 
167.24 	nonprofit organizations; and other interested 
167.25 	parties in developing eligibility criteria. * 
167.26 	(The preceding text beginning "$75,000 the 
167.27 	first year" was indicated as vetoed by the 
167.28 	governor.) 
167.29 	$200,000 in fiscal year 2008 is for a grant 
167.30 	to the Natural Resources Research Institute 
167.31 	for silvicultural research to improve the 
167.32 	quality and quantity of timber fiber. The 
167.33 	appropriation must be matched in the amount 
167.34 	of $200,000 in cash or in-kind contributions 
167.35 	from the forest products industry members of 
168.1 	the Minnesota Forest Productivity Research 
168.2 	Cooperative. 
168.3 	$1,000,000 the first year and $1,000,000 
168.4 	the second year are to support additional 
168.5 	technical and cost-share assistance to 
168.6 	nonindustrial private forest (NIPF) 
168.7 	landowners forest management activities. 
168.8 	The base appropriation in fiscal year 2010 
168.9 	and later is $500,000. 
168.10 	$200,000 the first year and $200,000 the 
168.11 	second year are to address escalating 
168.12 	land asset management demands, such as 
168.13 	boundary disputes, access easements, and 
168.14 	sale, exchange, and acquisition of forest 
168.15 	lands support additional forest management 
168.16 	activities. 

168.17 	Sec. 8. Laws 2007, chapter 57, article 1, section 4, subdivision 6, is amended to read:

168.18	Subd. 6. Trails and Waterways Management
 		30,257,000 
		30,492,000 

168.19	Appropriations by Fund 
	
168.20	General 
	2,538,000 
	2,568,000 
	
168.21	Natural Resources 
	25,600,000 
	25,730,000 
	
168.22	Game and Fish 
	2,119,000 
	2,194,000 
	
168.23 	$8,424,000 the first year and $8,424,000 
168.24 	the second year are from the snowmobile 
168.25 	trails and enforcement account in the natural 
168.26 	resources fund for snowmobile grants-in-aid. 
168.27 	The additional money under this item may 
168.28 	be used for new grant-in-aid trails. Any 
168.29 	unencumbered balance does not cancel at the 
168.30 	end of the first year and is available for the 
168.31 	second year. 
168.32 	$1,175,000 the first year and $1,325,000 the 
168.33 	second year are from the natural resources 
168.34 	fund for off-highway vehicle grants-in-aid. 
169.1 	Of this amount, $825,000 the first year and 
169.2 	$1,075,000 the second year are from the 
169.3 	all-terrain vehicle account; $150,000 each 
169.4 	year is from the off-highway motorcycle 
169.5 	account; and $200,000 the first year and 
169.6 	$100,000 the second year are from the 
169.7 	off-road vehicle account. Any unencumbered 
169.8 	balance does not cancel at the end of the first 
169.9 	year and is available for the second year. 
169.10 	$261,000 the first year and $261,000 the 
169.11 	second year are from the water recreation 
169.12 	account in the natural resources fund for a 
169.13 	safe harbor program on Lake Superior. 
169.14 	$742,000 the first year and $760,000 
169.15 	the second year are from the natural 
169.16 	resources fund for state trail operations 
169.17 	and maintenance. The money may be used 
169.18 	for trail maintenance, signage, mapping, 
169.19 	interpretation, native prairie restoration 
169.20 	using best management practices, and 
169.21 	maintenance of nonmotorized forest trails. 
169.22 	This appropriation is from the revenue 
169.23 	deposited in the natural resources fund 
169.24 	under Minnesota Statutes, section 297A.94, 
169.25 	paragraph (e), clause (2). 
169.26 	$655,000 the first year and $655,000 the 
169.27 	second year are from the natural resources 
169.28 	fund for trail grants to local units of 
169.29 	government on land to be maintained for 
169.30 	at least 20 years for the purposes of the 
169.31 	grant. This appropriation is from the revenue 
169.32 	deposited in the natural resources fund 
169.33 	under Minnesota Statutes, section 297A.94, 
169.34 	paragraph (e), clause (4). Any unencumbered 
169.35 	balance does not cancel at the end of the 
170.1 	first year and is available for the second 
170.2 	year. In addition, if a project financed under 
170.3 	this program receives a federal grant award, 
170.4 	the availability of the financing from this 
170.5 	paragraph for that project is extended to 
170.6 	equal the period of the federal grant.
170.7 	$150,000 the first year and $150,000 the 
170.8 	second year are from the all-terrain vehicle 
170.9 	account for two all-terrain vehicle trail 
170.10 	specialists to assist and consult with on 
170.11 	all-terrain vehicle grant-in-aid education and 
170.12 	training for sustainable trail development and 
170.13 	maintenance, as well as providing training 
170.14 	for public and private sector trail monitoring. 
170.15 	The specialists may assist in the evaluation 
170.16 	of grant-in-aid trail proposals, but not in the 
170.17 	promotion of new trails. 
170.18 	$1,965,000 the first year and $2,040,000 
170.19 	the second year are from the game and fish 
170.20 	fund for expenditures on water access sites 
170.21 	according to the requirements of the federal 
170.22 	sport and fish restoration program. 
170.23 	Money appropriated under Laws 2005, First 
170.24 	Special Session chapter 1, article 2, section 
170.25 	11, subdivision 6, paragraph (h), for the Paul 
170.26 	Bunyan State Trail connection is available 
170.27 	until June 30, 2008. 
170.28 	$400,000 each year is for operation and 
170.29 	maintenance of nonmotorized trails within 
170.30 	state forests. This is a onetime appropriation. 
170.31 	$75,000 each year is for additional wild and 
170.32 	scenic rivers program activities. 
170.33 	$120,000 the first year is from the 
170.34 	water recreation account in the natural 
170.35 	resources fund to cooperate with local 
171.1 	units of government in marking routes and 
171.2 	designating river accesses and campsites 
171.3 	under Minnesota Statutes, section 85.32. 
171.4 	This is a onetime appropriation and available 
171.5 	until spent. 
171.6 	The appropriation in Laws 2005, First 
171.7 	Special Session chapter 1, article 2, section 
171.8 	3, subdivision 6, from the lottery in lieu 
171.9 	account in the natural resources fund for 
171.10 	trail grants to local units of government, is 
171.11 	available until June 30, 2009. 

171.12 	ARTICLE 6
171.13 	ENVIRONMENT AND NATURAL RESOURCES POLICY

171.14 	Section 1. Minnesota Statutes 2006, section 17.4988, subdivision 2, is amended to read:
171.15 		Subd. 2.Aquatic farming license. (a) The annual fee for an aquatic farming license 
171.16 	is $210 for the base license. The commissioner must establish an additional fee based 
171.17 	on the acreage of the operation.
171.18 	(b) The aquatic farming license may contain endorsements for the rights and 
171.19 	privileges of the following licenses under the game and fish laws. The endorsement must 
171.20 	be made upon payment of the license fee prescribed in section 97A.475 for the following 
171.21 	licenses: 
171.22 	(1) minnow dealer license;
171.23 	(2) minnow retailer license for sale of minnows as bait;
171.24 	(3) minnow exporting license;
171.25 	(4) aquatic farm vehicle endorsement, which includes a minnow dealer vehicle 
171.26 	license, a minnow retailer vehicle license, an exporting minnow vehicle license, and a 
171.27 	fish vendor license;
171.28 	(5) sucker egg taking license; and
171.29 	(6) game fish packers license.

171.30 	Sec. 2. Minnesota Statutes 2006, section 17.4988, subdivision 3, is amended to read:
171.31 		Subd. 3.Inspection fees. The fees for the following inspections are: The 
171.32 	commissioner may, by written order published in the State Register, establish fees for 
171.33 	the services listed in clauses (1) to (3). The fees must be set in an amount that does not 
171.34 	recover significantly more or less than the cost of providing the service. The fees are not 
172.1 	subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply. The 
172.2 	services covered under this provision include:
172.3 	(1) initial inspection of each water to be licensed, $50;
172.4 	(2) fish health inspection and certification, $60 plus $150 per lot thereafter including 
172.5 	initial tissue sample collection, basic fish health assessment, viral pathogen testing, and 
172.6 	bacteriological testing; and
172.7 	(3) initial inspection for containment and quarantine facility inspections, $100.

172.8 	Sec. 3. Minnesota Statutes 2006, section 84.788, subdivision 3, is amended to read:
172.9 		Subd. 3.Application; issuance; reports. (a) Application for registration or 
172.10 	continued registration must be made to the commissioner or an authorized deputy registrar 
172.11 	of motor vehicles in a form prescribed by the commissioner. The form must state the name 
172.12 	and address of every owner of the off-highway motorcycle.
172.13 	(b) A person who purchases from a retail dealer an off-highway motorcycle shall 
172.14 	make application for registration to the dealer at the point of sale. The dealer shall issue a 
172.15 	dealer temporary ten-day 21-day registration permit to each purchaser who applies to the 
172.16 	dealer for registration. The dealer shall submit the completed registration applications and 
172.17 	fees to the deputy registrar at least once each week. No fee may be charged by a dealer to 
172.18 	a purchaser for providing the temporary permit.
172.19 	(c) Upon receipt of the application and the appropriate fee, the commissioner 
172.20 	or deputy registrar shall issue to the applicant, or provide to the dealer, an assigned 
172.21 	registration number or a commissioner or deputy registrar temporary ten-day 21-day
172.22 	permit. Once issued, the registration number must be affixed to the motorcycle according 
172.23 	to paragraph (f). A dealer subject to paragraph (b) shall provide the registration materials 
172.24 	or temporary permit to the purchaser within the ten-day 21-day temporary permit period.
172.25 	(d) The commissioner shall develop a registration system to register vehicles under 
172.26 	this section. A deputy registrar of motor vehicles acting under section 168.33, is also a 
172.27 	deputy registrar of off-highway motorcycles. The commissioner of natural resources 
172.28 	in agreement with the commissioner of public safety may prescribe the accounting 
172.29 	and procedural requirements necessary to ensure efficient handling of registrations 
172.30 	and registration fees. Deputy registrars shall strictly comply with the accounting and 
172.31 	procedural requirements.
172.32 	(e) In addition to other fees prescribed by law, a filing fee of $4.50 is charged for 
172.33 	each off-highway motorcycle registration renewal, duplicate or replacement registration 
172.34 	card, and replacement decal and a filing fee of $7 is charged for each off-highway 
172.35 	motorcycle registration and registration transfer issued by:
173.1 	(1) a deputy registrar and must be deposited in the treasury of the jurisdiction where 
173.2 	the deputy is appointed, or kept if the deputy is not a public official; or
173.3 	(2) the commissioner and must be deposited in the state treasury and credited to the 
173.4 	off-highway motorcycle account.
173.5 	(f) Unless exempted in paragraph (g), the owner of an off-highway motorcycle must 
173.6 	display a registration decal issued by the commissioner. If the motorcycle is licensed as 
173.7 	a motor vehicle, a registration decal must be affixed on the upper left corner of the rear 
173.8 	license plate. If the motorcycle is not licensed as a motor vehicle, the decal must be 
173.9 	attached on the side of the motorcycle and may be attached to the fork tube. The decal 
173.10 	must be attached in a manner so that it is visible while a rider is on the motorcycle. The 
173.11 	issued decals must be of a size to work within the constraints of the electronic licensing 
173.12 	system, not to exceed three inches high and three inches wide.
173.13 	(g) Display of a registration decal is not required for an off-highway motorcycle:
173.14 	(1) while being operated on private property; or
173.15 	(2) while competing in a closed-course competition event.

173.16 	Sec. 4. Minnesota Statutes 2006, section 84.82, subdivision 2, is amended to read:
173.17 		Subd. 2.Application, issuance, reports, additional fee. (a) Application for 
173.18 	registration or reregistration shall be made to the commissioner or an authorized deputy 
173.19 	registrar of motor vehicles in a format prescribed by the commissioner and shall state the 
173.20 	legal name and address of every owner of the snowmobile.
173.21 	(b) A person who purchases a snowmobile from a retail dealer shall make 
173.22 	application for registration to the dealer at the point of sale. The dealer shall issue a dealer 
173.23 	temporary ten-day 21-day registration permit to each purchaser who applies to the dealer 
173.24 	for registration. The temporary permit must contain the dealer's identification number and 
173.25 	phone number. Each retail dealer shall submit completed registration and fees to the 
173.26 	deputy registrar at least once a week. No fee may be charged by a dealer to a purchaser for 
173.27 	providing the temporary permit.
173.28 	(c) Upon receipt of the application and the appropriate fee as hereinafter provided, 
173.29 	the commissioner or deputy registrar shall issue to the applicant, or provide to the dealer, 
173.30 	an assigned registration number or a commissioner or deputy registrar temporary ten-day
173.31 	21-day permit. Once issued, the registration number must be affixed to the snowmobile in 
173.32 	a clearly visible and permanent manner for enforcement purposes as the commissioner 
173.33 	of natural resources shall prescribe. A dealer subject to paragraph (b) shall provide the 
173.34 	registration materials or temporary permit to the purchaser within the temporary ten-day
173.35 	21-day permit period. The registration is not valid unless signed by at least one owner.
174.1 	The temporary permit must indicate whether a snowmobile state trail sticker under section 
174.2 	84.8205 was purchased.
174.3 	(d) Each deputy registrar of motor vehicles acting pursuant to section 168.33, shall 
174.4 	also be a deputy registrar of snowmobiles. The commissioner of natural resources in 
174.5 	agreement with the commissioner of public safety may prescribe the accounting and 
174.6 	procedural requirements necessary to assure efficient handling of registrations and 
174.7 	registration fees. Deputy registrars shall strictly comply with these accounting and 
174.8 	procedural requirements.
174.9 	(e) A fee of $2 in addition to that otherwise prescribed by law shall be charged for:
174.10 	(1) each snowmobile registered by the registrar or a deputy registrar and the 
174.11 	additional fee shall be disposed of in the manner provided in section 168.33, subdivision 
174.12 	2; or
174.13 	(2) each snowmobile registered by the commissioner and the additional fee shall 
174.14 	be deposited in the state treasury and credited to the snowmobile trails and enforcement 
174.15 	account in the natural resources fund.

174.16 	Sec. 5. Minnesota Statutes 2006, section 84.82, is amended by adding a subdivision to 
174.17 	read:
174.18 		Subd. 3a.Expiration. All snowmobile registrations, excluding temporary 
174.19 	registration permits, required under this section expire June 30 of the year of expiration.

174.20 	Sec. 6. Minnesota Statutes 2007 Supplement, section 84.8205, subdivision 1, is 
174.21 	amended to read:
174.22 		Subdivision 1.Sticker required; fee. (a) Except as provided in paragraph (b), a 
174.23 	person may not operate a snowmobile on a state or grant-in-aid snowmobile trail unless a 
174.24 	snowmobile state trail sticker is affixed to the snowmobile. The commissioner of natural 
174.25 	resources shall issue a sticker upon application and payment of a $15 fee. The fee for a 
174.26 	three-year snowmobile state trail sticker that is purchased at the time of snowmobile 
174.27 	registration is $30. In addition to other penalties prescribed by law, a person in violation 
174.28 	of this subdivision must purchase an annual state trail sticker for a fee of $30. The sticker 
174.29 	is valid from November 1 through April June 30. Fees collected under this section, except 
174.30 	for the issuing fee for licensing agents, shall be deposited in the state treasury and credited 
174.31 	to the snowmobile trails and enforcement account in the natural resources fund and, 
174.32 	except for the electronic licensing system commission established by the commissioner 
174.33 	under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance, 
174.34 	grooming, and easement acquisition.
175.1 	(b) A state trail sticker is not required under this section for:
175.2 	(1) a snowmobile owned by the state or a political subdivision of the state that is 
175.3 	registered under section 84.82, subdivision 5;
175.4 	(2) a snowmobile that is owned and used by the United States, another state, or 
175.5 	a political subdivision thereof that is exempt from registration under section 84.82, 
175.6 	subdivision 6;
175.7 	(3) a collector snowmobile that is operated as provided in a special permit issued for 
175.8 	the collector snowmobile under section 84.82, subdivision 7a; 
175.9 	(4) a person operating a snowmobile only on the portion of a trail that is owned by 
175.10 	the person or the person's spouse, child, or parent; or
175.11 	(5) a snowmobile while being used to groom a state or grant-in-aid trail.
175.12 	(c) A temporary registration permit issued by a dealer under section 84.82, 
175.13 	subdivision 2, may include a snowmobile state trail sticker if the trail sticker fee is 
175.14 	included with the registration application fee.

175.15 	Sec. 7. Minnesota Statutes 2006, section 84.922, subdivision 2, is amended to read:
175.16 		Subd. 2.Application, issuance, reports. (a) Application for registration or 
175.17 	continued registration shall be made to the commissioner or an authorized deputy registrar 
175.18 	of motor vehicles in a form prescribed by the commissioner. The form must state the name 
175.19 	and address of every owner of the vehicle.
175.20 	(b) A person who purchases an all-terrain vehicle from a retail dealer shall make 
175.21 	application for registration to the dealer at the point of sale. The dealer shall issue a dealer 
175.22 	temporary ten-day 21-day registration permit to each purchaser who applies to the dealer 
175.23 	for registration. The dealer shall submit the completed registration application and fees 
175.24 	to the deputy registrar at least once each week. No fee may be charged by a dealer to a 
175.25 	purchaser for providing the temporary permit.
175.26 	(c) Upon receipt of the application and the appropriate fee, the commissioner 
175.27 	or deputy registrar shall issue to the applicant, or provide to the dealer, an assigned 
175.28 	registration number or a commissioner or deputy registrar temporary ten-day 21-day
175.29 	permit. Once issued, the registration number must be affixed to the vehicle in a manner 
175.30 	prescribed by the commissioner. A dealer subject to paragraph (b) shall provide the 
175.31 	registration materials or temporary permit to the purchaser within the ten-day 21-day
175.32 	temporary permit period. The commissioner shall use the snowmobile registration system 
175.33 	to register vehicles under this section.
175.34 	(d) Each deputy registrar of motor vehicles acting under section 168.33, is also 
175.35 	a deputy registrar of all-terrain vehicles. The commissioner of natural resources in 
176.1 	agreement with the commissioner of public safety may prescribe the accounting and 
176.2 	procedural requirements necessary to assure efficient handling of registrations and 
176.3 	registration fees. Deputy registrars shall strictly comply with the accounting and 
176.4 	procedural requirements.
176.5 	(e) In addition to other fees prescribed by law, a filing fee of $4.50 is charged 
176.6 	for each all-terrain vehicle registration renewal, duplicate or replacement registration 
176.7 	card, and replacement decal and a filing fee of $7 is charged for each all-terrain vehicle 
176.8 	registration and registration transfer issued by:
176.9 	(1) a deputy registrar and shall be deposited in the treasury of the jurisdiction where 
176.10 	the deputy is appointed, or retained if the deputy is not a public official; or
176.11 	(2) the commissioner and shall be deposited to the state treasury and credited to the 
176.12 	all-terrain vehicle account in the natural resources fund.

176.13 	Sec. 8. Minnesota Statutes 2006, section 84.9256, subdivision 1, is amended to read:
176.14 		Subdivision 1.Prohibitions on youthful operators. (a) Except for operation on 
176.15 	public road rights-of-way that is permitted under section 84.928, a driver's license issued 
176.16 	by the state or another state is required to operate an all-terrain vehicle along or on a 
176.17 	public road right-of-way.
176.18 	(b) A person under 12 years of age shall not:
176.19 	(1) make a direct crossing of a public road right-of-way;
176.20 	(2) operate an all-terrain vehicle on a public road right-of-way in the state; or
176.21 	(3) operate an all-terrain vehicle on public lands or waters, except as provided in 
176.22 	paragraph (f).
176.23 	(c) Except for public road rights-of-way of interstate highways, a person 12 years 
176.24 	of age but less than 16 years may make a direct crossing of a public road right-of-way 
176.25 	of a trunk, county state-aid, or county highway or operate on public lands and waters or 
176.26 	state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety 
176.27 	certificate issued by the commissioner and is accompanied on another all-terrain vehicle 
176.28 	by a person 18 years of age or older who holds a valid driver's license.
176.29 	(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years 
176.30 	old, but less than 16 years old, must:
176.31 	(1) successfully complete the safety education and training program under section 
176.32 	84.925, subdivision 1, including a riding component; and
176.33 	(2) be able to properly reach and control the handle bars and reach the foot pegs 
176.34 	while sitting upright on the seat of the all-terrain vehicle.
177.1 	(e) A person at least 11 years of age may take the safety education and training 
177.2 	program and may receive an all-terrain vehicle safety certificate under paragraph (d), but 
177.3 	the certificate is not valid until the person reaches age 12.
177.4 	(f) A person at least ten years of age but under 12 years of age may operate an 
177.5 	all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if 
177.6 	accompanied by a parent or legal guardian.
177.7 	(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
177.8 	(h) A person under the age of 16 may not operate an all-terrain vehicle on public 
177.9 	lands or waters or on state or grant-in-aid trails if the person cannot properly reach and 
177.10 	control the handle bars and reach the foot pegs while sitting upright on the seat of the 
177.11 	all-terrain vehicle.

177.12 	Sec. 9. Minnesota Statutes 2006, section 85.011, is amended to read:
177.13 	85.011 CONFIRMATION OF CREATION AND ESTABLISHMENT OF 
177.14 	STATE PARKS, MONUMENTS, STATE RECREATION RESERVES AREAS,
177.15 	AND WAYSIDES.
177.16 	The legislature of this state has provided for the creation and establishment of 
177.17 	state parks, designated monuments, state recreation reserves areas, and waysides for the 
177.18 	purpose of conserving the scenery, natural and historic objects and wildlife and to provide 
177.19 	for the enjoyment of the same in such manner and by such means as will leave them 
177.20 	unimpaired for the enjoyment of future generations.
177.21 	The establishment of such state parks, designated monuments, state recreation 
177.22 	reserves areas, and waysides is hereby confirmed as provided in this section and sections 
177.23 	85.012 and 85.013 and they shall remain perpetually dedicated for the use of the people of 
177.24 	the state for park purposes.
177.25 	The enumerated state parks, state monuments, state recreation areas, and state 
177.26 	waysides shall consist of the lands and other property authorized therefor before January 
177.27 	1, 1969, together with such other lands and properties as may be authorized therefor on 
177.28 	or after January 1, 1969.

177.29 	Sec. 10. Minnesota Statutes 2006, section 85.012, subdivision 28, is amended to read:
177.30 		Subd. 28. Interstate State Park, Chisago County, which is hereby renamed from 
177.31 	Dalles of Saint Croix State Park.

177.32 	Sec. 11. Minnesota Statutes 2006, section 85.012, subdivision 49a, is amended to read:
177.33 		Subd. 49a. St. Croix Wild River State Park, Chisago County.

178.1 	Sec. 12. Minnesota Statutes 2006, section 85.013, subdivision 1, is amended to read:
178.2 		Subdivision 1.Names, acquisition; administration. (a) Designated monuments,
178.3 	recreation reserves, and waysides heretofore established and hereby confirmed as state 
178.4 	monuments, state recreation areas and state waysides together with the counties in which 
178.5 	they are situated are listed in this section and shall hereafter be named as indicated 
178.6 	in this section.
178.7 	(b) Any land that now is or hereafter becomes tax-forfeited land and is located 
178.8 	within the described boundaries of a state recreation area as defined by session laws is 
178.9 	hereby withdrawn from sale and is transferred from the custody, control, and supervision 
178.10 	of the county board of the county to the commissioner of natural resources, free from 
178.11 	any trust in favor of the interested taxing districts. The commissioner shall execute a 
178.12 	certificate of acceptance of the lands on behalf of the state for such purposes and transmit 
178.13 	the same to the county auditor of the county for record as provided by law in the case 
178.14 	of tax-forfeited land transferred to the commissioner by resolution of the county board 
178.15 	for conservation purposes.

178.16 	Sec. 13. Minnesota Statutes 2006, section 85.054, subdivision 3, is amended to read:
178.17 		Subd. 3.Interstate State Park. A Minnesota state park permit is not required at 
178.18 	Interstate State Park if a valid, current, Wisconsin state park permit or sticker authorizing 
178.19 	entry of a motor vehicle into Wisconsin state parks is appropriately displayed on the 
178.20 	vehicle and the commissioner has entered into an agreement with appropriate officials 
178.21 	of the state of Wisconsin that authorizes motor vehicles displaying Minnesota state park 
178.22 	permits free entry into Interstate State Park of Wisconsin on a reciprocal basis.

178.23 	Sec. 14. Minnesota Statutes 2006, section 85.054, is amended by adding a subdivision 
178.24 	to read:
178.25 		Subd. 14.Grand Portage State Park.  A state park permit is not required and a fee 
178.26 	may not be charged for motor vehicle entry or parking at the Class 1 highway rest area 
178.27 	parking lot located adjacent to marked Trunk Highway 61 and Pigeon River at Grand 
178.28 	Portage State Park.

178.29 	Sec. 15. Minnesota Statutes 2006, section 86B.401, subdivision 2, is amended to read:
178.30 		Subd. 2.Temporary certificate. A person who applies for a watercraft license may 
178.31 	be issued a temporary license certificate to operate the watercraft. The temporary license 
178.32 	certificate is valid for the period of time specified by the commissioner 21 days.

179.1 	Sec. 16. Minnesota Statutes 2006, section 88.15, subdivision 2, is amended to read:
179.2 		Subd. 2.Not to be left burning. Every person who starts or maintains a campfire 
179.3 	shall:
179.4 	(1) exercise every reasonable precaution to prevent the campfire from spreading 
179.5 	and shall;
179.6 	(2) before lighting the campfire, clear the ground of all combustible material within 
179.7 	a radius of five feet from the base of the campfire. The person lighting the campfire shall;
179.8 	(3) remain with the campfire at all times; and shall
179.9 	(4) before leaving the site, completely extinguish the campfire.
179.10 	For the purposes of this section, "maintains" means tending or adding substantial 
179.11 	fuel to a campfire with the intention of extending the life of the campfire.

179.12 	Sec. 17. Minnesota Statutes 2006, section 89.715, is amended to read:
179.13 	89.715 ALTERNATIVE RECORDING FOR STATE FOREST ROAD.
179.14 		Subdivision 1.Authorization. The commissioner may adopt a recorded state forest 
179.15 	road map under this section to record the department's state forest road prescriptive 
179.16 	easements. For purposes of this section, "recorded state forest road map" means the 
179.17 	official map of state forest roads adopted by the commissioner.
179.18 		Subd. 2.Map requirements. The recorded state forest road map must:
179.19 	(1) show state forest roads at the time the map is adopted;
179.20 	(2) be prepared at a scale of at least four inches equals one mile compliant with 
179.21 	county recorder standards;
179.22 	(3) include section numbers;
179.23 	(4) include a north point arrow;
179.24 	(5) include the name of the county and state;
179.25 	(6) include a blank and a description under the blank for the date of public hearing 
179.26 	and date of adoption;
179.27 	(7) include blanks for signatures and dates of signatures for the commissioner; and
179.28 	(8) include a list of legal descriptions of all parcels crossed by state forest road 
179.29 	prescriptive easements.
179.30 		Subd. 3.Procedure to adopt map. (a) The commissioner must prepare an official 
179.31 	map for each county or smaller geographic area as determined by the commissioner as 
179.32 	provided in subdivision 2, and set a time, place, and date for a public hearing on adopting 
179.33 	a recorded state forest road map to record roads.
179.34 	(b) The hearing notice must state that the roads to be recorded will be to the width of 
179.35 	the actual use including ditches, backslopes, fills, and maintained rights-of-way, unless 
180.1 	otherwise specified in a prior easement of record. The hearing notice must be published 
180.2 	once a week for two successive weeks in a qualified newspaper of general circulation that 
180.3 	serves the county or smaller geographic areas as determined by the commissioner, the last 
180.4 	publication to be made at least ten days before the date of the public hearing. At least 30 
180.5 	days before the hearing, the hearing notice must be sent by certified mail to the property 
180.6 	owners directly affected in the county or smaller geographic areas as determined by the 
180.7 	commissioner at the addresses listed on the tax assessment notices at least seven days 
180.8 	before appearing in the qualified newspaper. The hearing notice may be sent with the tax 
180.9 	assessment, but all additional costs incurred shall be billed to the department.
180.10 	(c) After the public hearing is held, the commissioner may amend and adopt the 
180.11 	recorded state forest road map. The recorded adopted state forest road map must be dated 
180.12 	and signed by the commissioner and must be recordedfiled for recording with the county 
180.13 	recorder within 90 days after the map is adopted. The map is effective when filed with 
180.14 	the county recorder.
180.15 	(d) The recorded state forest road map that is recorded with the county recorder must 
180.16 	comply with the standards of the county recorder where the state forest roads are located.
180.17 	(e) A recorded state forest road map that was prepared by using aerial photographs 
180.18 	to establish road centerlines and that has been duly recorded with the county recorder is an 
180.19 	adequate description for purposes of recording road easements and the map is the legally 
180.20 	constituted description and prevails when a deed for a parcel abutting a road contains 
180.21 	no reference to a road easement. Nothing prevents the commissioner from accepting a 
180.22 	more definitive metes and bounds or survey description of a road easement for a road of 
180.23 	record if the description of the easement is referenced to equal distance on both sides 
180.24 	of the existing road centerline.
180.25 	(f) The commissioner shall consult with representatives of county land 
180.26 	commissioners, county auditors, county recorders, and Torrens examiners in implementing 
180.27 	this subdivision.
180.28 		Subd. 4.Appeal. (a) Before filing an appeal under paragraph (b), a person may 
180.29 	seek resolution of concerns regarding a decision to record a road under this section by 
180.30 	contacting the commissioner in writing.
180.31 	(b) A person may appeal a decision to record or exclude recording a road under this 
180.32 	section to the district court within 120 days after the date the commissioner adopts the 
180.33 	state forest road map. Appeals may be filed only by property owners who are directly 
180.34 	affected by a proposed map designation and only for those portions of the map designation 
180.35 	that directly affect them.
181.1 	(b) A property owner may appeal the map designation to the commissioner within 60 
181.2 	days of the map being recorded by filing a written request for review. The commissioner 
181.3 	shall review the request and any supporting evidence and render a decision within 45 
181.4 	days of receipt of the request for review.
181.5 	(c) If a property owner wishes to appeal a decision of the commissioner after review 
181.6 	under paragraph (b), the property owner must file an appeal with the district court within 
181.7 	60 days of the commissioner's decision.
181.8 	(d) If any portion of a map appealed under paragraph (b) is modified or found to be 
181.9 	invalid by a court of competent jurisdiction under paragraph (c), the remainder of the map 
181.10 	shall not be affected and its recording with the county recorder shall stand.
181.11 		Subd. 5.Unrecorded road or trail not affected. This section does not affect or 
181.12 	diminish the legal status or state obligations of roads and trails not shown on the recorded
181.13 	state forest road map.
181.14 		Subd. 6.Exemption. Adoption of a recorded state forest road map under this 
181.15 	section is exempt from the rulemaking requirements of chapter 14 and section 14.386
181.16 	does not apply.

181.17 	Sec. 18. Minnesota Statutes 2006, section 93.481, is amended by adding a subdivision 
181.18 	to read:
181.19 		Subd. 7.Mining administration account. The mining administration account is 
181.20 	established as an account in the natural resources fund. Ferrous mining administrative fees 
181.21 	charged to owners, operators, or managers of mines shall be credited to the account and 
181.22 	may be appropriated to the commissioner to cover the costs of providing and monitoring 
181.23 	permits to mine ferrous metals under this section.

181.24 	Sec. 19. Minnesota Statutes 2006, section 97A.055, subdivision 4b, is amended to read:
181.25 		Subd. 4b.Citizen oversight subcommittees. (a) The commissioner shall appoint 
181.26 	subcommittees of affected persons to review the reports prepared under subdivision 4; 
181.27 	review the proposed work plans and budgets for the coming year; propose changes 
181.28 	in policies, activities, and revenue enhancements or reductions; review other relevant 
181.29 	information; and make recommendations to the legislature and the commissioner for 
181.30 	improvements in the management and use of money in the game and fish fund.
181.31 	(b) The commissioner shall appoint the following subcommittees, each comprised 
181.32 	of at least three affected persons:
181.33 	(1) a Fisheries Operations Subcommittee to review fisheries funding, excluding 
181.34 	activities related to trout and salmon stamp funding;
182.1 	(2) a Wildlife Operations Subcommittee to review wildlife funding, excluding 
182.2 	activities related to migratory waterfowl, pheasant, and turkey stamp funding and 
182.3 	excluding review of the amounts available under section 97A.075, subdivision 1, 
182.4 	paragraphs (b) and (c);
182.5 	(3) a Big Game Subcommittee to review the report required in subdivision 4, 
182.6 	paragraph (a), clause (2);
182.7 	(4) an Ecological Services Operations Resources Subcommittee to review ecological 
182.8 	services funding;
182.9 	(5) a subcommittee to review game and fish fund funding of enforcement, support 
182.10 	services, and Department of Natural Resources administration and operations support;
182.11 	(6) a subcommittee to review the trout and salmon stamp report and address funding 
182.12 	issues related to trout and salmon;
182.13 	(7) a subcommittee to review the report on the migratory waterfowl stamp and 
182.14 	address funding issues related to migratory waterfowl;
182.15 	(8) a subcommittee to review the report on the pheasant stamp and address funding 
182.16 	issues related to pheasants; and
182.17 	(9) a subcommittee to review the report on the turkey stamp and address funding 
182.18 	issues related to wild turkeys.
182.19 	(c) The chairs of each of the subcommittees shall form a Budgetary Oversight 
182.20 	Committee to coordinate the integration of the subcommittee reports into an annual 
182.21 	report to the legislature; recommend changes on a broad level in policies, activities, and 
182.22 	revenue enhancements or reductions; provide a forum to address issues that transcend the 
182.23 	subcommittees; and submit a report for any subcommittee that fails to submit its report 
182.24 	in a timely manner.
182.25 	(d) The Budgetary Oversight Committee shall develop recommendations for a 
182.26 	biennial budget plan and report for expenditures on game and fish activities. By August 15 
182.27 	of each even-numbered year, the committee shall submit the budget plan recommendations 
182.28 	to the commissioner and to the senate and house committees with jurisdiction over natural 
182.29 	resources finance.
182.30 	(e) Each subcommittee shall choose its own chair, except that the chair of the 
182.31 	Budgetary Oversight Committee shall be appointed by the commissioner and may not 
182.32 	be the chair of any of the subcommittees.
182.33 	(f) The Budgetary Oversight Committee must make recommendations to the 
182.34 	commissioner and to the senate and house committees with jurisdiction over natural 
182.35 	resources finance for outcome goals from expenditures.
183.1 	(g) Notwithstanding section 15.059, subdivision 5, or other law to the contrary, the 
183.2 	Budgetary Oversight Committee and subcommittees do not expire until June 30, 2010.

183.3 	Sec. 20. Minnesota Statutes 2006, section 97A.141, subdivision 1, is amended to read:
183.4 		Subdivision 1.Acquisition; generally. The commissioner shall acquire access sites 
183.5 	adjacent to public waters and easements and rights-of-way necessary to connect the access 
183.6 	sites with public highways. The land may be acquired by gift, lease, or purchase, or by 
183.7 	condemnation with approval of the Executive Council. An access site may not exceed 
183.8 	seven acres and may only be acquired where access is inadequate.

183.9 	Sec. 21. Minnesota Statutes 2006, section 103A.204, is amended to read:
183.10 	103A.204 GROUNDWATER POLICY.
183.11 	(a) The responsibility for the protection of groundwater in Minnesota is vested 
183.12 	in a multiagency approach to management. The following is a list of agencies and the 
183.13 	groundwater protection areas for which the agencies are primarily responsible; the list is 
183.14 	not intended to restrict the areas of responsibility to only those specified:
183.15 	(1) Environmental Quality Board: creation of a water resources committee to 
183.16 	coordinate coordination of state groundwater protection programs and a biennial 
183.17 	groundwater policy report beginning in 1994 that includes, for the 1994 report, the 
183.18 	findings in the groundwater protection report coordinated by the Pollution Control Agency 
183.19 	for the Environmental Protection Agency;
183.20 	(2) Pollution Control Agency: water quality monitoring and reporting and the 
183.21 	development of best management practices and regulatory mechanisms for protection of 
183.22 	groundwater from nonagricultural chemical contaminants;
183.23 	(3) Department of Agriculture: sustainable agriculture, integrated pest management, 
183.24 	water quality monitoring, and the development of best management practices and 
183.25 	regulatory mechanisms for protection of groundwater from agricultural chemical 
183.26 	contaminants;
183.27 	(4) Board of Water and Soil Resources: reporting on groundwater education and 
183.28 	outreach with local government officials, local water planning and management, and 
183.29 	local cost share programs;
183.30 	(5) Department of Natural Resources: water quantity monitoring and regulation, 
183.31 	sensitivity mapping, and development of a plan for the use of integrated pest management 
183.32 	and sustainable agriculture on state-owned lands; and
183.33 	(6) Department of Health: regulation of wells and borings, and the development of 
183.34 	health risk limits under section 103H.201. 
184.1 	(b) The Environmental Quality Board shall through its Water Resources Committee 
184.2 	coordinate with representatives of all agencies prepare a report on policy issues related to 
184.3 	its responsibilities listed in paragraph (a), citizens, and other interested groups to prepare 
184.4 	a biennial report every even-numbered year as part of its duties described in sections 
184.5 	103A.43 and 103B.151 and include these reports with the assessments in section 103A.43 
184.6 	and the "Minnesota Water Plan" in section 103B.151. 

184.7 	Sec. 22. Minnesota Statutes 2006, section 103A.43, is amended to read:
184.8 	103A.43 WATER ASSESSMENTS AND REPORTS.
184.9 	(a) The Environmental Quality Board shall evaluate andconsolidate the assessments 
184.10 	required in paragraphs (b) and (c) with the policy report in section 103A.204 and submit a 
184.11 	single report to the house of representatives and senate committees with jurisdiction 
184.12 	over the environment, natural resources, and agriculture and the Legislative-Citizen 
184.13 	Commission on Minnesota Resources on statewide water research needs and 
184.14 	recommended priorities for addressing these needs. Local water research needs may also 
184.15 	be included by September 15, 2010, and every five years thereafter.
184.16 	(b) The Environmental Quality Board shall work with the Pollution Control Agency 
184.17 	and the Department of Agriculture to coordinate shall provide a biennial assessment and 
184.18 	analysis of water quality, groundwater degradation trends, and efforts to reduce, prevent, 
184.19 	minimize, and eliminate degradation of water. The assessment and analysis must include 
184.20 	an analysis of relevant monitoring data.
184.21 	(c) The Environmental Quality Board shall work with the Department of Natural 
184.22 	Resources to coordinate shall provide an assessment and analysis of the quantity of surface 
184.23 	and ground water in the state and the availability of water to meet the state's needs.
184.24 	(d) The Environmental Quality Board shall coordinate and submit a report on water 
184.25 	policy including the analyses in paragraphs (a) to (c) to the house of representatives 
184.26 	and senate committees with jurisdiction over the environment, natural resources, 
184.27 	and agriculture and the Legislative-Citizen Commission on Minnesota Resources by 
184.28 	September 15 of each even-numbered year. The report may include the groundwater 
184.29 	policy report in section 103A.204. 

184.30 	Sec. 23. Minnesota Statutes 2006, section 103B.151, subdivision 1, is amended to read:
184.31 		Subdivision 1.Water planning. The Environmental Quality Board shall:
184.32 	(1) coordinate public water resource management and regulation activities among 
184.33 	the state agencies having jurisdiction in the area;
185.1 	(2) initiate, coordinate, and continue to develop comprehensive long-range water 
185.2 	resources planning in furtherance of the plan prepared by the Environmental Quality 
185.3 	Board's Water Resources Committee entitled "Minnesota Water Plan," published in 
185.4 	January 1991, by September 15, 2000, and each ten-year interval afterwards;
185.5 	(3) coordinate water planning activities of local, regional, and federal bodies with 
185.6 	state water planning and integrate these plans with state strategies;
185.7 	(4) coordinate development of state water policy recommendations and priorities, 
185.8 	and a recommended program for funding identified needs, including priorities for 
185.9 	implementing the state water resources monitoring plan;
185.10 	(5) administer federal water resources planning with multiagency interests;
185.11 	(6) ensure that groundwater quality monitoring and related data is provided and 
185.12 	integrated into the Minnesota land management information system according to 
185.13 	published data compatibility guidelines. Costs of integrating the data in accordance with 
185.14 	data compatibility standards must be borne by the agency generating the data;
185.15 	(7) coordinate the development and evaluation of water information and education 
185.16 	materials and resources; and
185.17 	(8) coordinate the dissemination of water information and education through 
185.18 	existing delivery systems.

185.19 	Sec. 24. Minnesota Statutes 2007 Supplement, section 103G.291, subdivision 3, 
185.20 	is amended to read:
185.21 		Subd. 3.Water supply plans; demand reduction. (a) Every public water supplier 
185.22 	serving more than 1,000 people must submit a water supply plan to the commissioner 
185.23 	for approval by January 1, 1996. In accordance with guidelines developed by the 
185.24 	commissioner, the plan must address projected demands, adequacy of the water supply 
185.25 	system and planned improvements, existing and future water sources, natural resource 
185.26 	impacts or limitations, emergency preparedness, water conservation, supply and demand 
185.27 	reduction measures, and allocation priorities that are consistent with section 103G.261. 
185.28 	Public water suppliers must update their plan and, upon notification, submit it to the 
185.29 	commissioner for approval every ten years.
185.30 	(b) The water supply plan in paragraph (a) is required for all communities in the 
185.31 	metropolitan area, as defined in section 473.121, with a municipal water supply system 
185.32 	and is a required element of the local comprehensive plan required under section 473.859. 
185.33 	Water supply plans or updates submitted after December 31, 2008, must be consistent 
185.34 	with the metropolitan area master water supply plan required under section 473.1565, 
185.35 	subdivision 1, paragraph (a), clause (2).
186.1 	(c) Public water suppliers serving more than 1,000 people must employ water 
186.2 	use demand reduction measures, including a conservation rate structure, as defined in 
186.3 	subdivision 4, paragraph (a), unless exempted under subdivision 4, paragraph (c), before 
186.4 	requesting approval from the commissioner of health under section 144.383, paragraph 
186.5 	(a), to construct a public water supply well or requesting an increase in the authorized 
186.6 	volume of appropriation. Demand reduction measures must include evaluation of 
186.7 	conservation rate structures and a public education program that may include a toilet 
186.8 	and showerhead retrofit program.
186.9 	(d) Public water suppliers serving more than 1,000 people must submit records 
186.10 	that indicate the number of connections and amount of use by customer category and 
186.11 	volume of water unaccounted for with the annual report of water use required under 
186.12 	section 103G.281, subdivision 3.
186.13 	(e) For the purposes of this subdivision section, "public water supplier" means 
186.14 	an entity that owns, manages, or operates a public water supply, as defined in section 
186.15 	144.382, subdivision 4.

186.16 	Sec. 25. Minnesota Statutes 2006, section 103G.291, is amended by adding a 
186.17 	subdivision to read:
186.18 		Subd. 4.Conservation rate structure required. (a) For the purposes of this 
186.19 	section, "conservation rate structure" means a rate structure that encourages conservation 
186.20 	and may include increasing block rates, seasonal rates, time of use rates, individualized 
186.21 	goal rates, or excess use rates. The rate structure must consider each residential unit as an 
186.22 	individual user in multiple-family dwellings.
186.23 	(b) To encourage conservation, a public water supplier serving more than 1,000 
186.24 	people in the metropolitan area, as defined in section 473.121, subdivision 2, shall use 
186.25 	a conservation rate structure by January 1, 2010. All remaining public water suppliers 
186.26 	serving more than 1,000 people shall use a conservation rate structure by January 1, 2013.
186.27 	(c) A public water supplier without the proper measuring equipment to track the 
186.28 	amount of water used by its users, as of the effective date of this act, is exempt from 
186.29 	this subdivision and the conservation rate structure requirement under subdivision 3, 
186.30 	paragraph (c).

186.31 	Sec. 26. Minnesota Statutes 2006, section 103G.615, subdivision 2, is amended to read:
186.32 		Subd. 2.Fees. (a) The commissioner shall establish a fee schedule for permits to 
186.33 	control or harvest aquatic plants other than wild rice. The fees must be set by rule, and 
186.34 	section 16A.1283 does not apply. The fees may not exceed $750 per permit shall be based 
187.1 	upon the cost of receiving, processing, analyzing, and issuing the permit, and additional 
187.2 	costs incurred after the application to inspect and monitor the activities authorized by the 
187.3 	permit, and enforce aquatic plant management rules and permit requirements.
187.4 	(b) The A fee for a permit for the control of rooted aquatic vegetation is $35 for each 
187.5 	contiguous parcel of shoreline owned by an owner may be charged. This fee may not 
187.6 	be charged for permits issued in connection with purple loosestrife control or lakewide 
187.7 	Eurasian water milfoil control programs.
187.8 	(c) A fee may not be charged to the state or a federal governmental agency applying 
187.9 	for a permit.
187.10 	(d) The money received for the permits under this subdivision shall be deposited in 
187.11 	the treasury and credited to the water recreation account.

187.12 	Sec. 27. [115A.9175] LANDFILL; SITING.
187.13 	(a) To reduce potential future remediation costs and to protect groundwater, an 
187.14 	applicant for a permit for a disposal facility that was not in operation prior to March 1, 
187.15 	2008, and that accepts mixed municipal solid waste, ash, industrial waste, or construction 
187.16 	and demolition waste for disposal must submit as part of the application the results 
187.17 	of an independent laboratory analysis for major cations and anions and for enriched 
187.18 	tritium in water samples taken from an upgradient and downgradient well finished in the 
187.19 	uppermost unconsolidated aquifer encountered and an upgradient and downgradient well 
187.20 	finished in the uppermost bedrock aquifer at the site. If 150 feet of continuous nonaquifer 
187.21 	material is encountered above the bedrock, testing of bedrock wells is not required. If 
187.22 	no unconsolidated or bedrock aquifers are found within the first 150 feet at the site, no 
187.23 	cation, anion, or tritium testing is required.
187.24 	(b) The commissioner may not issue a disposal facility permit to an applicant whose 
187.25 	test results for tritium required in paragraph (a) report concentrations of five tritium units 
187.26 	or greater in any well tested, except as provided in paragraph (c).
187.27 	(c) If test results report concentrations of five enriched tritium units or greater for any 
187.28 	well, an applicant may present to the commissioner reasons and supporting documentation 
187.29 	why the tritium test results may not indicate that the site is highly sensitive to groundwater 
187.30 	contamination at the site. If the commissioner determines that the applicant's reasons 
187.31 	and supporting documentation are scientifically valid, the commissioner shall specify 
187.32 	additional testing of groundwater samples from the site that will allow a better estimate to 
187.33 	be made of the sensitivity of groundwater contamination at the site. If, after reviewing 
187.34 	the tritium test results, the additional testing data, and any other data pertaining to the 
187.35 	site's susceptibility to groundwater contamination, the commissioner determines that the 
188.1 	conclusion that the site is not highly sensitive to groundwater contamination is supported 
188.2 	by a preponderance of the scientifically valid evidence available, the commissioner may 
188.3 	issue the permit. For the purposes of this section, "highly sensitive to groundwater 
188.4 	contamination" means that the travel time of water from the land surface to the water table 
188.5 	or bedrock is less than 20 years.
188.6 	(d) Beginning July 1, 2010, and every two years thereafter, the commissioner must 
188.7 	review air sampling of the atmospheric concentration of tritium and adjust the tritium 
188.8 	concentration threshold in paragraph (b) to a level no greater than one-half the average 
188.9 	concentration of tritium in the atmosphere in this state.
188.10 	(e) Paragraphs (a) to (f) do not apply to an application for a permit to expand, 
188.11 	including a noncontiguous expansion of a facility, or modify the type of waste accepted at 
188.12 	a disposal facility operating as of March 1, 2008.
188.13 	(f) Minnesota Rules, part 7035.2815, applies to a disposal facility accepting 
188.14 	industrial waste.

188.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

188.16 	Sec. 28. Minnesota Statutes 2006, section 473.1565, subdivision 3, is amended to read:
188.17 		Subd. 3.Reports to legislature. The council must submit reports to the legislature 
188.18 	regarding its findings, recommendations, and continuing planning activities under 
188.19 	subdivision 1. The first report must be submitted to the legislature by the date the 
188.20 	legislature convenes in 2007 and subsequent reports must be submitted by such date 
188.21 	every five years thereafter. These reports shall be included in the "Minnesota Water Plan" 
188.22 	required in section 103B.151, and five-year interim reports may be provided as necessary.

188.23 	Sec. 29. FERROUS METALS MINING ADMINISTRATIVE FEE.
 188.24 	(a) Until a new application fee schedule is adopted for permits to mine ferrous metals 
188.25 	according to the report submitted by the commissioner of natural resources under article 
188.26 	1, section 3, subdivision 2, the commissioner shall charge the following administrative 
188.27 	fees, payable to the commissioner by June 30 of each year, beginning in 2008 until a 
188.28 	new application fee schedule is adopted.
188.29 	(b) The owner, operator, or manager of the following mines shall pay $90,000:
188.30 	(1) Minntac and Keetac; and
188.31 	(2) North Shore, Hibbing Taconite, and United Taconite.
188.32 	(c) The owner, operator, or manager of the Minorca mine shall pay $10,000.
188.33 	(d) The owner, operator, or manager of the following mines shall pay $3,333:
188.34 	(1) Minnesota Steel;
189.1 	(2) Mesaba Nugget; and
189.2 	(3) Cliffs Erie, formerly LTV.

189.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
189.4 	and applies to owners, operators, and managers holding or applying for a permit to mine 
189.5 	under Minneota Statutes, section 93.481, during the 2007 calendar year.

189.6 	Sec. 30. RULES.
 189.7 	The commissioner of natural resources shall adopt rules to implement the changes in 
189.8 	law made in sections 3 to 7 and 15. The initial rules required by this section are exempt 
189.9 	from the rulemaking provisions of Minnesota Statutes, chapter 14. The rules are subject 
189.10 	to Minnesota Statutes, section 14.386, except that notwithstanding Minnesota Statutes, 
189.11 	section 14.386, paragraph (b), the rules continue in effect until repealed or superseded 
189.12 	by other law or rule.

189.13 	Sec. 31.  REPEALER.
 189.14 	Minnesota Statutes 2006, sections 84.961, subdivision 4; 85.013, subdivision 21b; 
189.15 	and 97A.141, subdivision 2, and Laws 1989, chapter 335, article 1, section 21, subdivision 
189.16 	8, as amended by Laws 2002, chapter 323, section 19,  are repealed.

189.17 	ARTICLE 7
189.18 	ENERGY, COMMERCE, UTILITIES

189.19	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
189.20 	The amounts shown in this section summarize direct appropriations or reductions, 
189.21 	by fund, made in this article.

189.22			2008
		2009
		Total
	
189.23	General
	$
	30,000
	$
	(186,000)
	$
	(156,000)
	
189.24	Special Revenue
		-0-
		260,000
		260,000
	
189.25	Cancellations
		-0-
		2,600,000
		2,600,000
	
189.26	Transfers From Other Funds
		-0-
		9,180,000
		9,180,000

189.27
189.28	Sec. 2. COMMERCE AND PUBLIC UTILITIES COMMISSION 
APPROPRIATIONS AND REDUCTIONS.
 	
189.29 	The dollar amounts in the columns under "APPROPRIATIONS AND 
189.30 	REDUCTIONS" are added to or, if shown in parentheses, subtracted from the 
189.31 	appropriations in Laws 2007, chapter 57, or other law to the specified agencies. The 
189.32 	appropriations are from the general fund, or another named fund, and are available for the 
190.1 	fiscal years indicated for each purpose.  The figures "2008" and "2009" used in this article 
190.2 	mean that the appropriations listed under them are available for the fiscal year ending June 
190.3 	30, 2008, or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second 
190.4 	year" is fiscal year 2009. "The biennium" is fiscal years 2008 and 2009.  Appropriations 
190.5 	for the fiscal year ending June 30, 2008, are effective the day following final enactment.

190.6
190.7				APPROPRIATIONS AND 
REDUCTIONS
	
190.8				Available for the Year
	
190.9				Ending June 30
	
190.10					2008
		2009

190.11	Sec. 3. DEPARTMENT OF COMMERCE

190.12	Subdivision 1.Total Appropriation
 	$
	30,000
	$
	74,000

190.13	Appropriations by Fund
	
190.14		2008
	2009
	
190.15	General
	30,000
	(186,000)
	
190.16	Special Revenue
	-0-
	260,000
	
190.17	Cancellations
	-0-
	2,600,000
	
190.18
190.19	Transfers From 
Other Funds
	-0-
	5,180,000

190.20	Subd. 2.Administration
 		-0-
		84,000
	
190.21 	$46,000 in the second year is a base reduction 
190.22 	to the administration program and the Office 
190.23 	of Energy Security.
190.24 	$130,000 in the second year is a base increase 
190.25 	for staffing to enhance unclaimed property 
190.26 	compliance.

190.27	Subd. 3.Market Assurance
 		(270,000)
		(270,000)
	
190.28 	This is a base reduction to the do not call 
190.29 	program.

190.30	Subd. 4.Energy and Telecommunications
 		300,000
		260,000

190.31	Appropriations by Fund
	
190.32	General Fund
	300,000
	-0-
	
190.33
190.34	Special Revenue 
Fund
	-0-
	260,000
	
191.1 	$300,000 in the first year is for the 
191.2 	solar rebate program. This is a onetime 
191.3 	appropriation and is available until spent.
191.4 	$175,000 in the second year is a onetime 
191.5 	appropriation for the broadband mapping 
191.6 	project initiated in this article. This 
191.7 	appropriation is from the telecommunications 
191.8 	access Minnesota fund account in the special 
191.9 	revenue fund.
191.10 	$85,000 in the second year is a onetime 
191.11 	appropriation for transfer to the Board of 
191.12 	Regents of the University of Minnesota for 
191.13 	the state video franchising study initiated in 
191.14 	this article. This appropriation is from the 
191.15 	telecommunications access Minnesota fund 
191.16 	account in the special revenue fund.
191.17 	Of the amounts appropriated from the 
191.18 	special revenue fund in the second year 
191.19 	to the commissioner of commerce for 
191.20 	renewable energy research under Laws 
191.21 	2007, chapter 57, article 2, section 3, 
191.22 	subdivision 6, clause (7), up to $250,000 
191.23 	may be used for cold weather biodiesel 
191.24 	blending infrastructure grants to facilities 
191.25 	that serve Minnesota, $500,000 must be used 
191.26 	to support the algae-to-biofuels research 
191.27 	project at the University of Minnesota 
191.28 	and the Metropolitan Council, and up to 
191.29 	$500,000 must be used for the cap-and-trade 
191.30 	governance and economic and emissions 
191.31 	studies required in 2008 House File 3195. 
191.32 	The appropriation for the cap-and-trade 
191.33 	studies is available only if 2008 House File 
191.34 	3195, or legislation requiring the studies, is 
191.35 	enacted.
192.1 	Of the amounts appropriated from the 
192.2 	special revenue fund in the second year 
192.3 	to the commissioner of commerce for 
192.4 	automotive technology projects under Laws 
192.5 	2007, chapter 57, article 2, subdivision 6, 
192.6 	clause (4), up to $200,000 shall be used 
192.7 	for the required report and activities of the 
192.8 	Green Economy Transformation Task Force 
192.9 	established in this article. This is a onetime 
192.10 	appropriation.
192.11 	Of the assessment amount authorized under 
192.12 	Minnesota Statutes, section 216B.241, 
192.13 	subdivision 1e, up to $200,000 in the 
192.14 	second year shall be used for the required 
192.15 	report and activities of the Green Economy 
192.16 	Transformation Task Force established in 
192.17 	this article. This is a onetime appropriation.

192.18	Subd. 5.Cancellation
 					
192.19 	Prior to July 31, 2008, $2,600,000 from the 
192.20 	unexpended balance from the appropriation 
192.21 	made in Laws 2007, chapter 57, article 
192.22 	2, section 3, subdivision 6, for renewable 
192.23 	hydrogen initiative grants is canceled to the 
192.24 	general fund.

192.25	Subd. 6.Transfers
 					
192.26 	(a) Insurance Fraud Prevention Account
192.27 	Prior to July 31, 2008, the commissioner of 
192.28 	finance shall transfer $2,000,000 from the 
192.29 	unexpended balance of the insurance fraud 
192.30 	prevention account established in Minnesota 
192.31 	Statutes, section 45.0135, to the general fund.
192.32 	After June 15, 2009, and prior to June 30, 
192.33 	2009, the commissioner of finance shall 
192.34 	transfer $1,500,000 from the unexpended 
193.1 	balance of the insurance fraud prevention 
193.2 	account established in Minnesota Statutes, 
193.3 	section 45.0135, to the general fund.
193.4 	(b) Real Estate Education, Research and 
193.5 	Recovery Fund
193.6 	Prior to July 31, 2008, the commissioner 
193.7 	of finance shall transfer $1,350,000 from 
193.8 	the unexpended balance of the real estate 
193.9 	education, research and recovery fund 
193.10 	established in Minnesota Statutes, section 
193.11 	82.43, to the general fund.
193.12 	(c) Consumer Education Account
193.13 	Prior to July 31, 2008, the commissioner 
193.14 	of finance shall transfer $100,000 from 
193.15 	the unexpended balance of the consumer 
193.16 	education account established under 
193.17 	Minnesota Statutes, section 58.10, to the 
193.18 	general fund.
193.19 	(d) Automobile Theft Prevention Account
193.20 	Prior to July 31, 2008, the commissioner 
193.21 	of finance shall transfer $230,000 from the 
193.22 	unexpended balance of the automobile theft 
193.23 	prevention account established in Minnesota 
193.24 	Statutes, section 168A.40, to the general 
193.25 	fund.

193.26	Sec. 4. PUBLIC UTILITIES COMMISSION
 					
193.27 	Prior to July 31, 2008, the commissioner 
193.28 	of finance shall transfer $4,000,000 from 
193.29 	the telephone assistance fund established in 
193.30 	Minnesota Statutes, section 237.701, to the 
193.31 	general fund.

193.32 	Sec. 5. Minnesota Statutes 2007 Supplement, section 16B.328, is amended by adding a 
193.33 	subdivision to read:
194.1 		Subd. 3.Standards for state-funded outdoor lighting fixtures. (a) An outdoor 
194.2 	lighting fixture may be installed or replaced using state funds only if:
194.3 	(1) the new or replacement outdoor lighting fixture is a cutoff luminaire if the rated 
194.4 	output of the outdoor lighting fixture is greater than 1,800 lumens;
194.5 	(2) the minimum illuminance adequate for the intended purpose is used with 
194.6 	consideration given to nationally recognized standards;
194.7 	(3) for lighting of a designated highway of the state highway system, the Department 
194.8 	of Transportation determines that the purpose of the outdoor lighting fixture cannot be 
194.9 	achieved by the installation of reflective road markers, lines, warning or informational 
194.10 	signs, or other effective passive methods; and
194.11 	(4) full consideration has been given to energy conservation and savings, reducing 
194.12 	glare, minimizing light pollution, and preserving the natural night environment.
194.13 	(b) Paragraph (a) does not apply if:
194.14 	(1) a federal law, rule, or regulation preempts state law;
194.15 	(2) the outdoor lighting fixture is used on a temporary basis because emergency 
194.16 	personnel require additional illumination for emergency procedures;
194.17 	(3) the outdoor lighting fixture is used on a temporary basis for nighttime work;
194.18 	(4) special events or situations require additional illumination, provided that the 
194.19 	illumination installed shields the outdoor lighting fixtures from direct view and minimizes 
194.20 	upward lighting and light pollution;
194.21 	(5) the outdoor lighting fixture is used solely to highlight the aesthetic aspects of 
194.22 	a single object or distinctive building; or
194.23 	(6) a compelling safety interest exists that cannot be addressed by another method.
194.24 	(c) This subdivision does not apply to the operation and maintenance of lights or 
194.25 	lighting systems purchased or installed, or for which design work is completed, before 
194.26 	August 1, 2008.
194.27 	(d) This section does not apply if a state agency or local unit of government 
194.28 	determines that compliance with this section would: 
194.29 	(1) require an increased use of electricity;
194.30 	(2) increase the construction cost of a lighting system more than 15 percent over the 
194.31 	construction cost of a lighting system that does not comply with this section; 
194.32 	(3) increase the cost of operation and maintenance of the lighting system more than 
194.33 	ten percent over the cost of operating and maintaining the existing lighting system over 
194.34 	the life of the lighting system; or 
194.35 	(4) result in a negative safety impact.

195.1 	Sec. 6. [116J.437] COORDINATING ECONOMIC DEVELOPMENT AND 
195.2 	ENVIRONMENTAL POLICY.
195.3 		Subdivision 1.Definitions. For the purpose of this section, "green economy" means 
195.4 	products, processes, methods, technologies, or services intended to do one or more of 
195.5 	the following:
195.6 	(1) increase the use of energy from renewable sources, as defined in section 
195.7 	216B.1691;
195.8 	(2) increase the energy efficiency of the electric utility infrastructure system or 
195.9 	increase energy conservation related to electricity use, as provided in sections 216B.2401 
195.10 	and 216B.241;
195.11 	(3) reduce greenhouse gas emissions, as defined in section 216H.01, subdivision 
195.12 	2, or mitigate greenhouse gas emissions through, but not limited to, carbon capture, 
195.13 	storage, or sequestration;
195.14 	(4) monitor, protect, restore, and preserve the quality of surface waters; or
195.15 	(5) expand use of biofuels, including by expanding the feasibility or reducing the 
195.16 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can use 
195.17 	biofuels.
195.18 		Subd. 2.Coordinating economic development and environmental policy. The 
195.19 	commissioner shall cooperate to promote job training that complements green economy 
195.20 	business development.

195.21 	Sec. 7. Minnesota Statutes 2007 Supplement, section 116J.575, subdivision 1a, is 
195.22 	amended to read:
195.23 		Subd. 1a.Priorities. (a) If applications for grants exceed the available 
195.24 	appropriations, grants shall be made for sites that, in the commissioner's judgment, provide 
195.25 	the highest return in public benefits for the public costs incurred. "Public benefits" include 
195.26 	job creation, bioscience development, environmental benefits to the state and region, 
195.27 	efficient use of public transportation, efficient use of existing infrastructure, provision of 
195.28 	affordable housing, multiuse development that constitutes community rebuilding rather 
195.29 	than single-use development, crime reduction, blight reduction, community stabilization, 
195.30 	and property tax base maintenance or improvement. In making this judgment, the 
195.31 	commissioner shall give priority to redevelopment projects with one or more of the 
195.32 	following characteristics:
195.33 	(1) the need for redevelopment in conjunction with contamination remediation needs;
195.34 	(2) the redevelopment project meets current tax increment financing requirements 
195.35 	for a redevelopment district and tax increments will contribute to the project;
196.1 	(3) the redevelopment potential within the municipality;
196.2 	(4) proximity to public transit if located in the metropolitan area; 
196.3 	(5) redevelopment costs related to expansion of a bioscience business in Minnesota; 
196.4 	and
196.5 	(6) multijurisdictional projects that take into account the need for affordable housing, 
196.6 	transportation, and environmental impact; or
196.7 	(7) the project advances or promotes the green economy as defined in section 
196.8 	116J.437.
196.9 	(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 
196.10 	commissioner may weigh each factor, depending upon the facts and circumstances, as 
196.11 	the commissioner considers appropriate. The commissioner may consider other factors 
196.12 	that affect the net return of public benefits for completion of the redevelopment plan. The 
196.13 	commissioner, notwithstanding the listing of priorities and the goal of maximizing the 
196.14 	return of public benefits, shall make grants that distribute available money to sites both 
196.15 	within and outside of the metropolitan area. Unless sufficient applications are not received 
196.16 	for qualifying sites outside of the metropolitan area, at least 50 percent of the money 
196.17 	provided as grants must be made for sites located outside of the metropolitan area.

196.18 	Sec. 8. Minnesota Statutes 2006, section 116J.8731, subdivision 4, is amended to read:
196.19 		Subd. 4.Eligible projects. Assistance must be evaluated on the existence of the 
196.20 	following conditions:
196.21 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
196.22 	existing jobs as measured by the wages, skills, or education associated with those jobs;
196.23 	(2) increase in the tax base;
196.24 	(3) the project can demonstrate that investment of public dollars induces private 
196.25 	funds;
196.26 	(4) the project can demonstrate an excessive public infrastructure or improvement 
196.27 	cost beyond the means of the affected community and private participants in the project;
196.28 	(5) the project provides higher wage levels to the community or will add value to 
196.29 	current workforce skills;
196.30 	(6) whether assistance is necessary to retain existing business; and
196.31 	(7) whether assistance is necessary to attract out-of-state business; and
196.32 	(8) the project promotes or advances the green economy as defined in section 
196.33 	116J.437.
197.1 	A grant or loan cannot be made based solely on a finding that the conditions in 
197.2 	clause (6) or (7) exist. A finding must be made that a condition in clause (1), (2), (3), 
197.3 	(4), or (5) also exists.
197.4 	Applications recommended for funding shall be submitted to the commissioner.

197.5 	Sec. 9. Minnesota Statutes 2007 Supplement, section 216C.41, subdivision 3, is 
197.6 	amended to read:
197.7 		Subd. 3.Eligibility window. Payments may be made under this section only for:
197.8 	(a) electricity generated from:
197.9 	(1) a qualified hydroelectric facility that is operational and generating electricity 
197.10 	before December 31, 2009 2011;
197.11 	(2) a qualified wind energy conversion facility that is operational and generating 
197.12 	electricity before January 1, 2008; or
197.13 	(3) a qualified on-farm biogas recovery facility from July 1, 2001, through December 
197.14 	31, 2017; and
197.15 	(b) gas generated from a qualified on-farm biogas recovery facility from July 1, 
197.16 	2007, through December 31, 2017.

197.17 	Sec. 10. Minnesota Statutes 2006, section 216C.41, subdivision 4, is amended to read:
197.18 		Subd. 4.Payment period. (a) A facility may receive payments under this section for 
197.19 	a ten-year period. No payment under this section may be made for electricity generated:
197.20 	(1) by a qualified hydroelectric facility after December 31,  2019 2021;
197.21 	(2) by a qualified wind energy conversion facility after December 31,  2018; or
197.22 	(3) by a qualified on-farm biogas recovery facility after December 31, 2015.
197.23 	(b) The payment period begins and runs consecutively from the date the facility 
197.24 	begins generating electricity or, in the case of refurbishment of a hydropower facility, after 
197.25 	substantial repairs to the hydropower facility dam funded by the incentive payments are 
197.26 	initiated.

197.27 	Sec. 11. Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:
197.28 		Subdivision 1.Definitions. For the purpose of sections 609.531 to 609.5318, the 
197.29 	following terms have the meanings given them.
197.30 	(a) "Conveyance device" means a device used for transportation and includes, but 
197.31 	is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any 
197.32 	equipment attached to it. The term "conveyance device" does not include property which 
197.33 	is, in fact, itself stolen or taken in violation of the law.
198.1 	(b) "Weapon used" means a dangerous weapon as defined under section 609.02, 
198.2 	subdivision 6, that the actor used or had in possession in furtherance of a crime.
198.3 	(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).
198.4 	(d) "Contraband" means property which is illegal to possess under Minnesota law.
198.5 	(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the 
198.6 	Department of Commerce Division of Insurance Fraud Prevention, the Minnesota Division 
198.7 	of Driver and Vehicle Services, the Minnesota State Patrol, a county sheriff's department, 
198.8 	the Three Rivers Park District park rangers, the Department of Natural Resources Division 
198.9 	of Enforcement, the University of Minnesota Police Department, the Department of 
198.10 	Corrections' Fugitive Apprehension Unit, or a city or airport police department.
198.11 	(f) "Designated offense" includes:
198.12 	(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;
198.13 	(2) for driver's license or identification card transactions: any violation of section 
198.14 	171.22; and
198.15 	(3) for all other purposes: a felony violation of, or a felony-level attempt or 
198.16 	conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21; 
198.17 	609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282; 
198.18 	609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, 
198.19 	clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, 
198.20 	subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 
198.21 	609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561; 
198.22 	609.562; 609.563; 609.582; 609.59; 609.595; 609.611; 609.631; 609.66, subdivision 1e; 
198.23 	609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 
198.24 	609.89; 609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation 
198.25 	of section 609.891 or 624.7181; or any violation of section 609.324.
198.26 	(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

198.27 	Sec. 12. STATE VIDEO FRANCHISING STUDY.
 198.28 		Subdivision 1.Study contents. The Department of Commerce shall contract for a 
198.29 	study of the impact of legislation enacted in at least three states that requires franchises 
198.30 	for video service to be issued by a state agency. The contractor conducting the study 
198.31 	shall, prior to its initiation, consult with associations representing municipalities and 
198.32 	communities of color. The study shall contain, at a minimum, the following information:
198.33 	(1) the number of new video service providers that have applied for a state video 
198.34 	franchise;
199.1 	(2) the number of incumbent video service providers that have elected to terminate 
199.2 	an existing franchise agreement and apply for a state video franchise;
199.3 	(3) the amount of capital invested by new video service providers to furnish video 
199.4 	service;
199.5 	(4) the number of communities in which new video service providers intend to offer 
199.6 	video services, as reflected in their application;
199.7 	(5) the number of communities with an incumbent video provider in which new 
199.8 	providers intend to offer video services;
199.9 	(6) the number of communities with no incumbent video service provider in which 
199.10 	new video service providers intend to offer video services;
199.11 	(7) the effect on video service prices in communities with an incumbent video 
199.12 	provider in which new video service providers offer video services;
199.13 	(8) the effect on franchise fee revenues received by municipalities from video 
199.14 	service providers;
199.15 	(9) the effect on the number of PEG channels available to communities;
199.16 	(10) the effect on the amount of revenues received by municipalities to support the 
199.17 	provision of PEG programming in communities;
199.18 	(11) the effect on the amount of PEG programming available in communities;
199.19 	(12) the progress of new video providers in meeting any build-out requirements 
199.20 	in the law; and
199.21 	(13) the effect on municipal services provided to communities by video service 
199.22 	providers.
199.23 		Subd. 2.Report. The department shall submit the report described in subdivision 
199.24 	1 to the chairs and ranking minority members of the senate and house committees with 
199.25 	primary jurisdiction over telecommunications policy by February 1, 2009.

199.26 	Sec. 13. BROADBAND MAPPING PROJECT.
 199.27 		Subdivision 1.Project. The commissioner of commerce shall contract with a 
199.28 	nonprofit organization that has significant experience working with broadband providers to 
199.29 	develop geographical information system maps displaying levels of broadband service by 
199.30 	connection speed and type of technology used and integrating the maps with demographic 
199.31 	information to produce a comprehensive statewide inventory and mapping of existing 
199.32 	broadband service and capability.
199.33 		Subd. 2.Mapping. Data must be collected from broadband providers and entered 
199.34 	into a geographic information system to produce maps that, for the state of Minnesota and 
199.35 	any defined geographical entity within it, clearly convey the following information:
200.1 	(1) areas unserved by any broadband provider;
200.2 	(2) areas served by a single broadband provider;
200.3 	(3) the location of towers used to transmit and receive broadband signals;
200.4 	(4) actual upstream and downstream transmission speeds at the county level of detail;
200.5 	(5) areas served by multiple broadband providers; and
200.6 	(6) the types of technology used to provide broadband service.
200.7 	The data used to produce the maps must be capable of being integrated with demographic 
200.8 	data from other sources including, but not limited to, population density and household 
200.9 	income to allow for the production of maps that measure, down to the census block 
200.10 	level of detail, various characteristics of residents in areas receiving different levels of 
200.11 	broadband services and utilizing different technologies. Data provided by a broadband 
200.12 	provider to the contractor under this subdivision is nonpublic data under Minnesota 
200.13 	Statutes, section 13.02, subdivision 9. Maps produced under this subdivision are public 
200.14 	data under Minnesota Statutes, section 13.03.
200.15 	For the purposes of this section, "technology" or "technologies" means different 
200.16 	methods of connecting to the Internet including, but not limited to, cable modem, DSL, 
200.17 	ADSL, VDSL, and fiber optics.

200.18 	Sec. 14. REPORT.
 200.19 	The commissioner of commerce, in consultation with the commissioner of 
200.20 	employment and economic development, must analyze all state grant and loan programs 
200.21 	administered by a state agency to develop a plan specific to each program to optimize the 
200.22 	growth of the green economy, as defined in section 6, through program activities. The 
200.23 	report, along with any necessary implementing legislation, must be submitted to the chairs 
200.24 	of the legislative committees with primary jurisdiction over energy, environmental, and 
200.25 	economic development finance or policy issues by January 15, 2009.

200.26 	Sec. 15. GREEN ECONOMY TRANSFORMATION TASK FORCE.
 200.27 		Subdivision 1.Task force. (a) A Green Economy Transformation Task Force is 
200.28 	created to advise and assist the governor and legislature regarding activities to transform 
200.29 	the state's economy, and to develop a statewide action plan as provided under subdivision 
200.30 	2. The task force shall consist of:
200.31 	(1) three legislators from the house of representatives, including one minority 
200.32 	caucus member, appointed by the speaker, and three legislators from the senate, including 
200.33 	one minority caucus member, appointed by the Subcommittee on Committees of the 
200.34 	Committee on Rules and Administration;
201.1 	(2) six representatives from state agencies and institutions appointed by the 
201.2 	governor, including one member from the Office of Energy Security, one member from 
201.3 	the Department of Employment and Economic Security, one member from the Job Skills 
201.4 	Partnership Board, one member from the University of Minnesota, one member from 
201.5 	Minnesota State Colleges and Universities, and one additional member; and
201.6 	(3) six persons from the private sector appointed by the cochairs of the task force, 
201.7 	including one member representing the utility industry, one member representing labor, 
201.8 	one member representing manufacturing, one member representing financial institutions, 
201.9 	one member representing venture capital, and one additional member. A cochair shall 
201.10 	be named from among the legislative members by the appointing authority of each 
201.11 	legislative body.
201.12 	The governor is exempt from the requirements of the open appointments process for 
201.13 	purposes of appointing task force members.
201.14 	(b) The Department of Commerce shall provide staff support to the task force. The 
201.15 	task force may accept outside resources to help support its efforts.
201.16 		Subd. 2.Duties. (a) By January 15, 2009, the task force shall develop and present to 
201.17 	the legislature and the governor a statewide action plan, including necessary legislation 
201.18 	and budget requests, for transforming the economic system of the state to respond to and 
201.19 	benefit from the environmental and energy policies of the state contained in the:
201.20 	(1) renewable energy standard in Minnesota Statutes, section 216B.1691, 
201.21 	subdivision 2a;
201.22 	(2) energy conservation requirement in Minnesota Statutes, section 216B.241, 
201.23 	subdivision 1c;
201.24 	(3) greenhouse gas emission reduction goals in Minnesota Statutes, section 216H.02, 
201.25 	subdivision 1;
201.26 	(4) Clean Water Legacy Act in Minnesota Statutes, chapter 114D; and 
201.27 	(5) biofuels 25 by 2025 initiative in Minnesota Statutes, sections 41A.10, subdivision 
201.28 	2, and 41A.11.
201.29 	(b) The plan may consist of legislative actions, administrative actions of 
201.30 	governmental entities, collaborative actions, and actions of individuals and individual 
201.31 	organizations. The plan must be developed following the analysis described in this 
201.32 	paragraph and must be based on the analysis. The analysis must include:
201.33 	(1) a market analysis of the business opportunities and needs created by the laws 
201.34 	enumerated in paragraph (a), including local, state, national, and international markets;
201.35 	(2) an analysis of the labor force needs related to the market analysis opportunities 
201.36 	identified in clause (1), including educational, training, and retraining needs; and
202.1 	(3) an inventory of the current labor and business assets available to respond to the 
202.2 	opportunities identified in clause (1) and the labor needs identified in clause (2).
202.3 	The task force shall contract for the analysis required by this paragraph.
202.4 	(c) The task force expires June 30, 2009.

202.5 	ARTICLE 8
202.6 	DEPARTMENT OF AGRICULTURE, BOARD OF ANIMAL HEALTH, 
202.7 	DEPARTMENT OF VETERANS AFFAIRS, DEPARTMENT OF 
202.8 	EMPLOYMENT AND ECONOMIC DEVELOPMENT

202.9	Section 1. SUMMARY OF APPROPRIATIONS.
 	
202.10 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
202.11 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 45, articles 1 
202.12 	to 3, to the agencies and for the purposes specified in this article. The appropriations 
202.13 	are from the general fund or another named fund and are available for the fiscal years 
202.14 	indicated for each purpose. The figures "2008" and "2009" used in this article mean 
202.15 	that the addition to or subtraction from the appropriation listed under them is available 
202.16 	for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. Supplemental 
202.17 	appropriations and reductions to appropriations for the fiscal year ending June 30, 2008, 
202.18 	are effective the day following final enactment.

202.19				APPROPRIATIONS
	
202.20				Available for the Year
	
202.21				Ending June 30
	
202.22					2008
		2009

202.23	Sec. 2. DEPARTMENT OF AGRICULTURE
 	$
	(200,000)
	$
	2,143,000
	
202.24 	$302,000 is a reduction in fiscal year 2009. 
202.25 	The commissioner shall make a reduction 
202.26 	of $100,000 from agricultural marketing, 
202.27 	$100,000 shall come from efficiencies gained 
202.28 	by the merger of the Agriculture Resources 
202.29 	Management and Development Division and 
202.30 	the Agriculture Finance Division, and the 
202.31 	remainder shall come from a reduction in 
202.32 	administrative services. 
202.33 	$2,385,000 in fiscal year 2009 is for grants 
202.34 	to livestock producers via the livestock 
202.35 	investment grant program in Minnesota 
203.1 	Statutes, section 17.118, if enacted. This is a 
203.2 	onetime appropriation and is available until 
203.3 	spent.
203.4 	The $200,000 appropriation in Laws 2007, 
203.5 	chapter 45, article 1, section 3, subdivision 
203.6 	4, for a grant to the Elk River Economic 
203.7 	Development Authority for a bioenergy 
203.8 	project is canceled to the general fund. 
203.9 	$60,000 in fiscal year 2009 is for a grant 
203.10 	to the Washington Center for Internships 
203.11 	and Academic Seminars. The center must 
203.12 	use the funds for an agricultural renewable 
203.13 	energy internship pilot program that awards 
203.14 	scholarships to students enrolling in a 
203.15 	Minnesota four-year college or university 
203.16 	beginning in the spring semester of 2009. 
203.17 	This appropriation must be matched 
203.18 	two-to-one by funding from the United 
203.19 	States Department of Agriculture. The center 
203.20 	must work with Minnesota colleges and 
203.21 	universities and the Minnesota Department 
203.22 	of Agriculture to achieve racial, ethnic, 
203.23 	and gender diversity, as well as rural-urban 
203.24 	balance among scholarship recipients, 
203.25 	and must award the scholarships to 
203.26 	Minnesota students who are economically 
203.27 	disadvantaged, who demonstrate need 
203.28 	of financial assistance, and who are 
203.29 	underrepresented in higher education. This 
203.30 	is a onetime appropriation.
203.31 	$310,000 is a reduction in fiscal year 2009 
203.32 	of the appropriation for ethanol producer 
203.33 	payments in Laws 2007, chapter 45, article 
203.34 	1, section 3, subdivision 4. This reduction 
203.35 	becomes part of the base. In addition, the 
204.1 	appropriation for producer payments must be 
204.2 	reduced by an additional $247,000 in 2010 
204.3 	and $293,000 in 2011 to reflect the end of 
204.4 	deficiency payments to a bankrupt ethanol 
204.5 	entity as required in article 9, section 6. 
204.6 	These amounts must stay within the budget 
204.7 	for the Department of Agriculture.
204.8 	$310,000 in fiscal year 2009 is for increased 
204.9 	ground water monitoring activities. This 
204.10 	appropriation is onetime only.

204.11	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	472,000
	$
	5,562,000
	
204.12 	For monitoring, testing, eradication, 
204.13 	education, and outreach, and other activities 
204.14 	the board is required to undertake to 
204.15 	comply with federal regulations concerning 
204.16 	cattle, bison, goats, and farmed cervidae 
204.17 	under a USDA modified accredited status. 
204.18 	$2,252,000 is added to the base in each of 
204.19 	fiscal years 2010 and 2011.
204.20 	Up to $12,000 in fiscal year 2009 is for 
204.21 	a onetime grant to a beef cattle producer 
204.22 	located outside of a bovine tuberculosis 
204.23 	containment area who purchased certified 
204.24 	tuberculosis-free cattle yet sustained financial 
204.25 	losses beyond the producer's control due to 
204.26 	restrictions imposed by the Board of Animal 
204.27 	Health that effectively denied the producer 
204.28 	the ability to sell the tuberculosis-free 
204.29 	cattle during favorable market conditions. 
204.30 	Notwithstanding Minnesota Statutes, 
204.31 	section 35.085, the board shall make this 
204.32 	grant from the $100,000 appropriation for 
204.33 	reimbursements in Laws 2007, chapter 45, 
204.34 	article 1, section 4.

205.1
205.2	Sec. 4. DEPARTMENT OF VETERANS 
AFFAIRS

205.3	Subdivision 1.Total Appropriation
 	$
	(5,250,000)
	$
	1,357,000

205.4	Appropriations by Fund
	
205.5		2008
	2009
	
205.6	General
	(5,250,000)
	1,695,000
	
205.7	Special Revenue
	-0-
	(338,000)
	
205.8 	The amounts that may be spent for each 
205.9 	purpose are specified in the following 
205.10 	subdivisions.

205.11	Subd. 2.Appropriations by Purpose
 					
205.12 	$500,000 in fiscal year 2009 is added to 
205.13 	the base for grants to counties for veterans 
205.14 	service offices as provided under Laws 2007, 
205.15 	chapter 45, article 2, section 1, paragraph (b). 
205.16 	By January 15, 2009, the commissioner shall 
205.17 	report to the chair and ranking minority 
205.18 	member of each committee in the senate and 
205.19 	house of representatives with jurisdiction 
205.20 	over the policy and finance of veterans affairs 
205.21 	regarding activities and expenditures under 
205.22 	this program during fiscal years 2008 and 
205.23 	2009, including an explanation of the role of 
205.24 	staff of the Department of Veterans Affairs in 
205.25 	administering this program.
205.26 	$3,500,000 in fiscal year 2009 is for state 
205.27 	soldiers assistance under Minnesota Statutes, 
205.28 	section 197.05.  Of this amount, $2,000,000 
205.29 	is added to the base for this activity. This 
205.30 	appropriation is available until spent.
205.31 	By January 15, 2009, the commissioner shall 
205.32 	report to the chair and ranking minority 
205.33 	member of each committee in the senate and 
205.34 	house of representatives with jurisdiction 
205.35 	over the policy and finance of veterans affairs 
206.1 	regarding activities and expenditures under 
206.2 	this program during fiscal years 2008 and 
206.3 	2009, including an explanation of the role of 
206.4 	staff of the Department of Veterans Affairs in 
206.5 	administering this program.
206.6 	$1,000,000 in fiscal year 2009 is for casework 
206.7 	services for veterans.  The commissioner, 
206.8 	in consultation with the Department of 
206.9 	Administration, shall use the request for 
206.10 	proposal process in Minnesota Statutes, 
206.11 	chapter 16C, to solicit bids for the provision 
206.12 	of these services.  The casework services 
206.13 	provided should be community-based, 
206.14 	available statewide, and include in-home 
206.15 	counseling.
206.16 	By January 15, 2009, the commissioner shall 
206.17 	report to the chair and ranking minority 
206.18 	member of each committee in the senate and 
206.19 	house of representatives with jurisdiction 
206.20 	over the policy and finance of veterans affairs 
206.21 	regarding activities and expenditures under 
206.22 	this program during fiscal years 2008 and 
206.23 	2009.
206.24 	$220,000 in fiscal year 2009 is added to 
206.25 	the base for operations of the LinkVET 
206.26 	telephone line service for veterans.
206.27 	For purposes of efficiency, the commissioner 
206.28 	must combine the services available through 
206.29 	the toll-free higher education call center 
206.30 	for veterans with those available through 
206.31 	LinkVET.
206.32 	$250,000 in fiscal year 2009 is added to 
206.33 	the base for the Veterans Claims Office for 
206.34 	outreach and training to improve services 
206.35 	and benefits to veterans.  This appropriation 
207.1 	includes money to add a female veterans 
207.2 	service officer/coordinator position.
207.3 	$50,000 in fiscal year 2009 is for designing 
207.4 	a treatment program for veterans with 
207.5 	traumatic brain injuries within the state 
207.6 	veterans homes.  By January 15, 2009, the 
207.7 	commissioner must report to the chair and 
207.8 	ranking minority member of each committee 
207.9 	in the senate and house of representatives 
207.10 	with jurisdiction over the policy and finance 
207.11 	of veterans affairs regarding the requirements 
207.12 	and feasibility of implementing this program 
207.13 	within existing and future veterans homes. 
207.14 	This is a onetime appropriation.
207.15 	$250,000 in fiscal year 2009 is added to the 
207.16 	base for a grant to the Minnesota Assistance 
207.17 	Council for Veterans for their work in 
207.18 	helping veterans and their families affected 
207.19 	by homelessness. 
207.20 	By January 15, 2009, the commissioner shall 
207.21 	report to the chair and ranking minority 
207.22 	member of each committee in the senate and 
207.23 	house of representatives with jurisdiction 
207.24 	over the policy and finance of veterans affairs 
207.25 	regarding activities and expenditures under 
207.26 	this program during fiscal years 2008 and 
207.27 	2009.
207.28 	$200,000 in fiscal year 2009 is for:
207.29 	(1) an intergovernmental and veterans 
207.30 	strategic planning study for the Minnesota 
207.31 	veterans homes, with special emphasis 
207.32 	on exploring alternative models for the 
207.33 	Minneapolis veterans home; and
207.34 	(2) a study of the feasibility of partnering 
207.35 	for home-based services for veterans with 
208.1 	nongovernmental, nonprofit, or faith-based 
208.2 	social service and health care delivery 
208.3 	organizations, as a means of enabling 
208.4 	veterans to live more independently, as an 
208.5 	alternative to the projected sharply increasing 
208.6 	needs for domiciliary and skilled nursing 
208.7 	beds in state veterans homes. This is a 
208.8 	onetime appropriation.
208.9 	No staff may be hired for or allocated to 
208.10 	any new veterans cemetery without explicit 
208.11 	legislative approval.
208.12 	Notwithstanding Minnesota Statutes, section 
208.13 	16A.62, on June 30, 2008, all money in 
208.14 	the permanent trust account in the special 
208.15 	revenue fund of the state veterans cemetery 
208.16 	must be transferred to the permanent 
208.17 	development and maintenance account in 
208.18 	that fund.
208.19 	$1,000,000 is a reduction in fiscal year 2009 
208.20 	for the Veterans Homes Board.  The base 
208.21 	appropriation for fiscal years 2010 and 2011 
208.22 	is reduced by $1,320,000 in each year.  This 
208.23 	reduction is made possible by the enhanced 
208.24 	efficiency in administration of the homes 
208.25 	associated with the transfer of governing 
208.26 	authority from the Veterans Homes Board to 
208.27 	the commissioner of veterans affairs.
208.28 	$600,000 in fiscal year 2009 is for the state 
208.29 	GI bill program in Minnesota Statutes, 
208.30 	section 197.791.  The base for this program is 
208.31 	increased by $800,000 in each of fiscal years 
208.32 	2010 and 2011.
208.33 	$5,250,000 in fiscal year 2008 and 
208.34 	$5,000,000 in fiscal year 2009 are reductions 
208.35 	from the appropriation made in Laws 2007, 
209.1 	chapter 144, article 1, section 7. The base for 
209.2 	the program in fiscal year 2010 is reduced by 
209.3 	$4,500,000.
209.4 	$100,000 in fiscal year 2009 is for a grant 
209.5 	to the Minnesota Ambulance Association 
209.6 	to implement a veterans paramedic 
209.7 	apprenticeship program for the purpose of 
209.8 	reintegrating qualified returning military 
209.9 	medics into Minnesota's workforce in the 
209.10 	field of paramedic and emergency services. 
209.11 	This is a onetime appropriation.
209.12 	$25,000 in fiscal year 2009 is to develop a 
209.13 	pilot program for peer-to-peer counseling 
209.14 	among combat veterans. This is a onetime 
209.15 	appropriation.
209.16 	By January 15, 2009, the commissioner shall 
209.17 	report to the chair and ranking minority 
209.18 	member of each committee in the senate and 
209.19 	house of representatives with jurisdiction 
209.20 	over the policy and finance of veterans affairs 
209.21 	regarding activities and expenditures under 
209.22 	this program.
209.23 	$1,000,000 in fiscal year 2009 is for 
209.24 	improvements to the medication distribution 
209.25 	system in the Minnesota veterans homes. 
209.26 	This is a onetime appropriation.
209.27 	By January 15, 2009, the commissioner shall 
209.28 	report to the chair and ranking minority 
209.29 	member of each committee in the senate and 
209.30 	house of representatives with jurisdiction 
209.31 	over the policy and finance of veterans affairs 
209.32 	regarding activities and expenditures under 
209.33 	this program, including an explanation of the 
209.34 	role of staff of the Department of Veterans 
209.35 	Affairs in administering this program.
210.1 	$338,000 is a reduction in fiscal year 
210.2 	2009 from the special revenue fund 
210.3 	appropriation from the account established 
210.4 	in Minnesota Statutes, section 190.19. The 
210.5 	base appropriation in fiscal years 2010 and 
210.6 	2011 is $0.

210.7
210.8	Sec. 5. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	0
	$
	1,000,000
	
210.9 	$500,000 in fiscal year 2009 is for military 
210.10 	reservist economic injury loans under 
210.11 	Minnesota Statutes, section 116J.996, if 
210.12 	enacted.
210.13 	$500,000 in fiscal year 2009 is for 
210.14 	expenditures related to dislocated workers 
210.15 	who are eligible veterans under Minnesota 
210.16 	Statutes, section 116L.17, subdivision 1, 
210.17 	paragraph (c), clause (6), if enacted.

210.18 	ARTICLE 9
210.19 	RELATED PROVISIONS FOR AGRICULTURE AND VETERANS AFFAIRS

210.20 	Section 1. Minnesota Statutes 2006, section 3.30, subdivision 1, is amended to read:
210.21 		Subdivision 1.Appropriation; transfers. A general contingent appropriation for 
210.22 	each year of the biennium is authorized in the amount the legislature deems sufficient. 
210.23 	Additional special contingent appropriations as the legislature deems necessary are 
210.24 	authorized. Transfers from the appropriations to the appropriations of the various 
210.25 	departments and agencies may be made by the commissioner of finance subject to the 
210.26 	following provisions:
210.27 	(a) Transfers may be authorized by the commissioner of finance not exceeding 
210.28 	$5,000 for the same purpose for any quarterly period.
210.29 	(b) Transfers exceeding $5,000 but not exceeding $10,000 may be authorized by the 
210.30 	commissioner of finance with the approval of the governor.
210.31 	(c) Transfers exceeding $10,000 may be authorized by the governor but no transfer 
210.32 	exceeding $10,000 may be made until the governor has consulted the Legislative Advisory 
210.33 	Commission and it has made its recommendation on the transfer. Its recommendation 
210.34 	is advisory only. Failure or refusal of the commission to make a recommendation is 
211.1 	a negative recommendation. Subject to the provisions in this paragraph, the governor 
211.2 	may request a transfer to the commissioner of agriculture to pay for activities to respond 
211.3 	promptly to an outbreak of an invasive tree pest. The commissioner of agriculture shall 
211.4 	report to the commissioner of finance all potential sources of reimbursement for costs 
211.5 	incurred including but not limited to federal funds.
211.6 	The commissioner of finance shall return to the appropriate contingent account any 
211.7 	funds transferred under this subdivision that the commissioner determines are not needed.

211.8 	Sec. 2. Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision 
211.9 	to read:
211.10 		Subd. 6.World War II memorial donation match account. Money remaining 
211.11 	in the World War II memorial donation match account after the state share of the 
211.12 	construction costs of the World War II memorial has been paid in full is appropriated to the 
211.13 	commissioner of veterans affairs for services and programs for veterans and their families.

211.14 	Sec. 3. Minnesota Statutes 2006, section 190.19, subdivision 1, is amended to read:
211.15 		Subdivision 1.Establishment. The Minnesota "Support Our Troops" account is 
211.16 	established in the special revenue fund. The account shall consist of contributions from 
211.17 	private sources and appropriations. Money in the account is appropriated in equal shares 
211.18 	to the Department of Military Affairs and the Department of Veterans Affairs.

211.19 	EFFECTIVE DATE. Notwithstanding Laws 2007, chapter 45, articles 2, section 1, 
211.20 	and 3, section 2, subdivision 3, this section is effective for distribution of the Minnesota 
211.21 	"Support Our Troops" account the day following final enactment.

211.22 	Sec. 4. Minnesota Statutes 2006, section 190.19, is amended by adding a subdivision 
211.23 	to read:
211.24 		Subd. 2a.Uses; veterans. Money appropriated to the Department of Veterans 
211.25 	Affairs from the Minnesota "Support Our Troops" account may be used for:
211.26 	(1) grants to veterans service organizations; and
211.27 	(2) outreach to underserved veterans.

211.28 	Sec. 5. Laws 2007, chapter 45, article 2, section 1, is amended to read:

211.29	Section 1. VETERANS AFFAIRS
 	$ 
	12,855,000 
	$ 
	12,571,000 

211.30	Appropriations by Fund 
	
211.31		2008 
	2009 
	
212.1	General 
	12,517,000 
	12,233,000 
	
212.2	Special Revenue 
	338,000 
	338,000 
	
212.3 	(a) $1,000,000 each year is added to the 
212.4 	base for state soldier's assistance under 
212.5 	Minnesota Statutes, section 197.05. If the 
212.6 	appropriation for this purpose for either year 
212.7 	is insufficient, the appropriation for the other 
212.8 	year is available for it.
212.9 	(b) $750,000 the first year and $750,000 
212.10 	the second year are added to the base for 
212.11 	grants to counties under the terms of this 
212.12 	section. The commissioner shall issue a 
212.13 	request for proposals for grants to enhance 
212.14 	the benefits, programs, and services provided 
212.15 	to veterans. The request must specify that 
212.16 	priority will be given to proposals that meet 
212.17 	the programmatic goals established by the 
212.18 	commissioner, including proposals that will:
212.19 	(1) provide the most effective outreach to 
212.20 	veterans;
212.21 	(2) reintegrate combat veterans into society;
212.22 	(3) collaborate with other social service 
212.23 	agencies, educational institutions, and other 
212.24 	relevant community resources;
212.25 	(4) reduce homelessness among veterans; 
212.26 	and
212.27 	(5) provide measurable outcomes.
212.28 	The commissioner may provide incentives 
212.29 	to encourage, and may give priority to 
212.30 	proposals that foster, regional collaboration 
212.31 	for service delivery. The grants may be for a 
212.32 	term of up to two years. The commissioner 
212.33 	shall ensure that grants are made throughout 
212.34 	all regions of the state and shall develop a 
213.1 	description of best practices for the use of 
213.2 	these grants. A county may not reduce its 
213.3 	county veterans service officer budget by any 
213.4 	amount received as a grant under this section. 
213.5 	Grants made under this section are in addition 
213.6 	to and not subject to the requirements for 
213.7 	grants made under Minnesota Statutes, 
213.8 	section 197.608. The Minnesota Association 
213.9 	of County Veterans Service Officers may 
213.10 	apply for grants under this section beginning 
213.11 	July 1, 2007. Any balance remaining after 
213.12 	the first year does not cancel and is available 
213.13 	in the second year. This appropriation must 
213.14 	be included in the appropriation base through 
213.15 	fiscal year 2011.
213.16 	(c) $750,000 each year is for tribal veterans 
213.17 	services offices.
213.18 	(d) $750,000 each year is for a grant to the 
213.19 	Minnesota Assistance Council for Veterans. 
213.20 	This is a onetime appropriation.
213.21 	(e) $200,000 each year is for marketing 
213.22 	veterans outreach programs. This is a 
213.23 	onetime appropriation.
213.24 	(f) $250,000 each year is added to the base 
213.25 	for grants to Disabled American Veterans, 
213.26 	Military Order of the Purple Heart, Veterans 
213.27 	of Foreign Wars, Vietnam Veterans of 
213.28 	America, and other congressionally chartered 
213.29 	veterans service organizations designated by 
213.30 	the commissioner.
213.31 	(g) $450,000 the first year and $450,000 
213.32 	the second year are for the higher education 
213.33 	veterans assistance program under Minnesota 
213.34 	Statutes, section 197.585. This appropriation 
214.1 	must be included in the agency appropriation 
214.2 	base through fiscal year 2011.
214.3 	(h) $100,000 each year is for information 
214.4 	technology.
214.5 	(i) $75,000 each year is for operations at the 
214.6 	Minnesota State Veterans Cemetery in Little 
214.7 	Falls.
214.8 	(j) $250,000 each year is for administration 
214.9 	of veterans programming. This appropriation 
214.10 	includes money for the biennium for 
214.11 	an ombudsman for residents and family 
214.12 	members of residents at the Minneapolis 
214.13 	Veterans' Home. The ombudsman must 
214.14 	attend all meetings of the Veterans Homes 
214.15 	Board and provide a report at each 
214.16 	meeting regarding the status of concerns 
214.17 	communicated to the ombudsman.
214.18 	(k) $100,000 each year is for compensation 
214.19 	for honor guards at the funerals of veterans 
214.20 	in accordance with the program established 
214.21 	in Minnesota Statutes, section 197.231. This 
214.22 	is a onetime appropriation.
214.23 	(l) $52,000 the first year is for spousal 
214.24 	education benefits in accordance with 
214.25 	Minnesota Statutes, section 197.75. This 
214.26 	appropriation is available until June 30, 2009.
214.27 	(m) $100,000 each year is for information 
214.28 	and outreach regarding the availability of 
214.29 	depleted uranium testing. The commissioner 
214.30 	shall collaborate with the adjutant general 
214.31 	to identify service members and veterans 
214.32 	who may have been exposed to expended 
214.33 	depleted uranium and to provide them with 
214.34 	information regarding depleted uranium 
215.1 	screening services provided by the federal 
215.2 	government. This is a onetime appropriation.
215.3 	(n) $250,000 the first year is for grants to 
215.4 	assist World War II veterans in attending the 
215.5 	dedication of the Minnesota World War II 
215.6 	Memorial in St. Paul on June 9, 2007, and for 
215.7 	other expenses of the dedication event. The 
215.8 	commissioner may spend only that portion 
215.9 	of this sum for which a matching amount, 
215.10 	whether in cash or in kind, is donated by 
215.11 	nongovernmental sources for this purpose. 
215.12 	This appropriation is available immediately.
215.13 	(o) $80,000 the first year is for suicide 
215.14 	prevention and psychological support for 
215.15 	veterans. Of this amount, $50,000 is for a 
215.16 	study by the commissioner and the adjutant 
215.17 	general of the psychological status and 
215.18 	needs of returning Minnesota veterans, 
215.19 	and $30,000 is for a telephone hotline to 
215.20 	refer veterans to available psychological 
215.21 	counseling services. The commissioner 
215.22 	may use this appropriation to supplement 
215.23 	an existing informational hotline service 
215.24 	within the department, or may collaborate 
215.25 	with any other provider of compatible, 
215.26 	existing hotline services for this purpose. 
215.27 	The referral hotline must be available to 
215.28 	veterans statewide at all practicable hours. 
215.29 	The commissioner must broadly publicize 
215.30 	the availability of the telephone hotline 
215.31 	and any local, state, and federal counseling 
215.32 	services for Minnesota veterans using all 
215.33 	practicable means available, including but 
215.34 	not limited to: the agency Web site; local 
215.35 	media announcements; announcements in 
216.1 	service and trade publications; and any other 
216.2 	practical means of communication.
216.3 	The commissioner may spend up to two 
216.4 	percent of this appropriation for development 
216.5 	of special informational materials, such 
216.6 	as refrigerator magnets, wallet cards, and 
216.7 	other devices on which hotline numbers 
216.8 	may be kept for immediate use. The 
216.9 	commissioner also may accept and spend 
216.10 	other contributions from nongovernmental 
216.11 	sources for this purpose. This is a onetime 
216.12 	appropriation.
216.13 	(p) $338,000 each year is from the account 
216.14 	in the special revenue fund established in 
216.15 	Minnesota Statutes, section 190.19, for (1) 
216.16 	grants to veterans service organizations; and 
216.17 	(2) outreach to underserved veterans. Any 
216.18 	balance in the first year does not cancel and 
216.19 	is available in the second year.

216.20 	Sec. 6. DISCONTINUATION OF ETHANOL PRODUCER PAYMENTS.
 216.21 	Notwithstanding any law to the contrary, the commissioner of agriculture shall 
216.22 	discontinue payments under Minnesota Statutes, section 41A.09, including deficiency 
216.23 	payments, to any ethanol producer that ceased operations and declared bankruptcy in 2004.

216.24 	ARTICLE 10
216.25 	TRANSPORTATION FINANCE

216.26	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
216.27 	The amounts shown in this section summarize direct appropriations, by fund, made 
216.28 	in this article.

216.29			2008
		2009
		Total
	
216.30	General
	$
	0
	$
	(200,000)
	$
	(200,000)
	
216.31	Trunk Highway
	$
	6,849,000
	$
	12,000,000
	$
	18,849,000
	
216.32	Total
	$
	6,849,000
	$
	11,800,000
	$
	18,649,000

216.33	Sec. 2. APPROPRIATIONS.
 	
217.1 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
217.2 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 143, article 1, to 
217.3 	the agencies and for the purposes specified in this article. The appropriations are from the 
217.4 	general fund or another named fund and are available for the fiscal years indicated for 
217.5 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
217.6 	to or subtraction from the appropriation listed under them is available for the fiscal year 
217.7 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
217.8 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
217.9 	day following final enactment.

217.10				APPROPRIATIONS
	
217.11				Available for the Year
	
217.12				Ending June 30
	
217.13					2008
		2009

217.14	Sec. 3. TRANSPORTATION

217.15	Subdivision 1.Total Appropriation
 	$
	6,849,000
	$
	(21,000)

217.16	Appropriations by Fund
	
217.17		2008
	2009
	
217.18	General
	0
	(21,000)
	
217.19	Trunk Highway 
	6,849,000
	0
	
217.20 	The amounts that may be spent or must be 
217.21 	reduced for each purpose are specified in the 
217.22 	following subdivisions.

217.23	Subd. 2.Transit
 		-0-
		(19,000)
	
217.24 	This reduction is from the appropriation from 
217.25 	the general fund for transit in Laws 2007, 
217.26 	chapter 143, article 1, section 3, subdivision 
217.27 	2, paragraph (b). The base appropriation for 
217.28 	fiscal years 2010 and 2011 is $18,796,000 
217.29 	per year.

217.30	Subd. 3.Freight
 		-0-
		(2,000)
	
217.31 	This reduction is from the appropriation from 
217.32 	the general fund for freight in Laws 2007, 
217.33 	chapter 143, article 1, section 3, subdivision 
217.34 	2, paragraph (c).

218.1	Subd. 4.State Roads
 		6,849,000
		-0-
	
218.2 	This appropriation is spending authority for 
218.3 	additional federal bridge funding authorized 
218.4 	and appropriated by Congress in 2008, and 
218.5 	is for the actual construction, reconstruction, 
218.6 	and improvement of trunk highways, 
218.7 	including design-build contracts and 
218.8 	consultant usage to support these activities. 
218.9 	This includes the cost of actual payments to 
218.10 	landowners for lands acquired for highway 
218.11 	rights-of-way, payments to lessees, interest 
218.12 	subsidies, and relocation expenses. This is a 
218.13 	onetime appropriation.

218.14	Sec. 4. METROPOLITAN COUNCIL
 	$
	-0-
	$
	(94,000)
	
218.15 	This reduction is from the appropriation from 
218.16 	the general fund for bus system operations in 
218.17 	Laws 2007, chapter 143, article 1, section 4, 
218.18 	subdivision 2, and Hiawatha light rail transit 
218.19 	in Laws 2007, chapter 143, article 1, section 
218.20 	4, subdivision 3. The base appropriation for 
218.21 	fiscal years 2010 and 2011 is $78,635,000 
218.22 	per year.

218.23	Sec. 5. PUBLIC SAFETY

218.24	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	11,940,000

218.25	Appropriations by Fund
	
218.26		2008
	2009
	
218.27	General
	0
	(60,000)
	
218.28	Trunk Highway
	0
	12,000,000
	
218.29 	The amounts that may be spent or must be 
218.30 	reduced for each purpose are specified in the 
218.31 	following subdivisions.

218.32	Subd. 2.Public Safety Support
 		-0-
		(45,000)
	
219.1 	Of this reduction, $28,000 is from the 
219.2 	appropriation from the general fund 
219.3 	for a security coordinator to coordinate 
219.4 	planning efforts for the Republican National 
219.5 	Convention in Laws 2007, chapter 143, 
219.6 	article 1, section 5, subdivision 2, paragraph 
219.7 	(b).
219.8 	Of this reduction, $17,000 is from the 
219.9 	appropriation from the general fund in 
219.10 	Laws 2007, chapter 143, article 1, section 5, 
219.11 	subdivision 2, paragraph (b).
219.12 	The base appropriation for fiscal years 2010 
219.13 	and 2011 is $3,296,000 per year.

219.14	Subd. 3.Capitol Security
 		-0-
		(15,000)
	
219.15 	This reduction is from the appropriation from 
219.16 	the general fund in Laws 2007, chapter 143, 
219.17 	article 1, section 5, subdivision 3, paragraph 
219.18 	(c).

219.19	Subd. 4.Driver and Vehicle Services
 		-0-
		12,000,000
	
219.20 	This appropriation is from the trunk 
219.21 	highway fund for research, development, 
219.22 	deployment, and maintenance of a driver and 
219.23 	vehicle services information system. This 
219.24 	appropriation is available until June 30, 2010.

219.25 	Sec. 6. Minnesota Statutes 2006, section 171.29, subdivision 1, is amended to read:
219.26 		Subdivision 1.Examination required. No person whose driver's license has been 
219.27 	revoked by reason of conviction, plea of guilty, or forfeiture of bail not vacated, under 
219.28 	section 169.791, 169.797, or171.17, or 171.172, or revoked under section 169.792
219.29 	or 169A.52 shall be issued another license unless and until that person shall have 
219.30 	successfully passed an examination as required by the commissioner of public safety. 
219.31 	This subdivision does not apply to an applicant for early reinstatement under section 
219.32 	169.792, subdivision 7a. 

219.33 	Sec. 7. Laws 2008, chapter 152, article 1, section 6, subdivision 2, is amended to read:
220.1 		Subd. 2. Appropriation; study. $325,000 $300,000 is appropriated from the 
220.2 	general fund to the Board of Regents of the University of Minnesota for the Center for 
220.3 	Transportation Studies to complete a study to assess the public policy implications of 
220.4 	financing new and improved transportation infrastructure in Minnesota through capturing 
220.5 	the value of the benefits created, to prepare a report on its findings, and to conduct a 
220.6 	series of workshops. This is a onetime appropriation and is available in fiscal years 2008 
220.7 	and 2009. 

220.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

220.9 	Sec. 8.  REPEALER.
 220.10 	Minnesota Statutes 2006, section 168.123, subdivision 2a, is repealed.

220.11 	ARTICLE 11
220.12 	PUBLIC SAFETY

220.13	Section 1. SUMMARY OF APPROPRIATIONS.
 	
220.14 	The amounts shown in this section summarize the direct appropriations, by fund, 
220.15 	made in this article.

220.16			2008
		2009
		Total
	
220.17	General
	$
	360,000
	$
	(10,408,000)
	$
	(10,048,000)
	
220.18	Special Revenue Fund
		(25,000)
		50,000
		25,000
	
220.19	Total
	$
	335,000
	$
	(10,358,000)
	$
	(10,023,000)

220.20	Sec. 2. PUBLIC SAFETY APPROPRIATIONS.
 	
220.21 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
220.22 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 54, article 1, to 
220.23 	the agencies and for the purposes specified in this article. The appropriations are from the 
220.24 	general fund, or another named fund, and are available for the fiscal years indicated for 
220.25 	each purpose. The figures "2008" and "2009" used in this article mean that the addition to 
220.26 	or subtraction from the appropriations listed under them are available for the fiscal year 
220.27 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
220.28 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day 
220.29 	following final enactment. "The first year" is fiscal year 2008. "The second year" is fiscal 
220.30 	year 2009. "The biennium" is fiscal years 2008 and 2009.

220.31				APPROPRIATIONS
	
220.32				Available for the Year
	
221.1				Ending June 30
	
221.2					2008
		2009

221.3	Sec. 3. SUPREME COURT
 	$
	-0-
	$
	(778,000)
	
221.4 	$650,000 in the second year is to reduce 
221.5 	funding for Supreme Court operations.
221.6 	$128,000 in the second year is to reduce 
221.7 	funding for civil legal services.

221.8	Sec. 4. COURT OF APPEALS
 	$
	-0-
	$
	(141,000)

221.9	Sec. 5. DISTRICT COURTS
 	$
	-0-
	$
	(3,608,000)

221.10	Sec. 6. BOARD OF PUBLIC DEFENSE
 	$
	-0-
	$
	(1,690,000)

221.11	Sec. 7. PUBLIC SAFETY

221.12	Subdivision 1.Total Appropriation
 	$
	360,000
	$
	(1,598,000)

221.13	Subd. 2.Emergency Management
 		360,000
		(40,000)
	
221.14 	$360,000 in the first year is to provide a 
221.15 	match for FEMA money received for natural 
221.16 	disaster assistance payments and is added 
221.17 	to appropriations in Laws 2007, chapter 54, 
221.18 	article 1, section 10, subdivision 2. This 
221.19 	appropriation is available until June 30, 
221.20 	2010. This is a onetime appropriation.
221.21 	The appropriation from the general fund in 
221.22 	the second year to reimburse local chemical 
221.23 	assessment and hazardous materials teams 
221.24 	when they respond to incidents is reduced 
221.25 	by $40,000. Reimbursements up to $40,000 
221.26 	per year are to be made from revenues in 
221.27 	the special revenue fund from billings to 
221.28 	responsible companies.

221.29	Subd. 3.Criminal Apprehension
 		-0-
		(708,000)
	
222.1 	$608,000 in the second year is to reduce the 
222.2 	funding for CriMNet justice information 
222.3 	integration. The base is reduced by an 
222.4 	additional $209,000 in fiscal year 2010 and 
222.5 	each year after.
222.6 	The general fund appropriation includes 
222.7 	a reduction of $100,000 in fiscal year 
222.8 	2009. This reduction may be applied to 
222.9 	any program funded under Laws 2007, 
222.10 	chapter 54, article 1, section 10, with the 
222.11 	exception of Office of Justice Programs and 
222.12 	forensic lab scientists. All budget reductions 
222.13 	should be made with an emphasis on cutting 
222.14 	administration and overhead expenses, with 
222.15 	as little impact as possible on programs and 
222.16 	services.

222.17	Subd. 4.Fire Marshal
 					
222.18 	By May 1, 2009, $1,000,000 must be 
222.19 	transferred from the fire marshal account in 
222.20 	the special revenue fund to the general fund.

222.21	Subd. 5.Office of Justice Programs
 		-0-
		(850,000)
	
222.22 	$350,000 in the second year are reductions 
222.23 	for grants to the Financial Crimes Task Force. 
222.24 	The base is reduced by an additional $10,000 
222.25 	in fiscal year 2010 and each year after.
222.26 	$500,000 in the second year are for 
222.27 	reductions in squad car cameras.

222.28	Sec. 8. HUMAN RIGHTS
 	$
	-0-
	$
	(149,000)
	
222.29 	This reduction is from Laws 2007, chapter 
222.30 	54, article 1, section 13.

222.31	Sec. 9. DEPARTMENT OF CORRECTIONS

222.32	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(2,444,000)

223.1	Subd. 2.Community Services
 		-0-
		(2,100,000)

223.2	Short-Term Offenders
 		-0-
		(1,500,000)
	
223.3 	This reduction is from Laws 2007, chapter 
223.4 	54, article 1, section 14, subdivision 3.

223.5	Sentencing to Service
 		-0-
		(600,000)
	
223.6 	This reduction is from Laws 2007, chapter 
223.7 	54, article 1, section 14, subdivision 3.

223.8	Subd. 3.Operations Support
 		-0-
		(344,000)
	
223.9 	This reduction is from Laws 2007, chapter 
223.10 	54, article 1, section 14, subdivision 4.
223.11 	The base is reduced by an additional $56,000 
223.12 	in fiscal year 2010 and each year after.

223.13 	Sec. 10. Minnesota Statutes 2006, section 13.851, is amended by adding a subdivision 
223.14 	to read:
223.15 		Subd. 9.Civil commitment of sexual offenders. Data relating to the preparation 
223.16 	of a petition to commit an individual as a sexual psychopathic personality or sexually 
223.17 	dangerous person is governed by section 253B.185, subdivision 1b.

223.18 	Sec. 11. Minnesota Statutes 2006, section 253B.045, subdivision 1, is amended to read:
223.19 		Subdivision 1.Restriction. Except when ordered by the court pursuant to a finding 
223.20 	of necessity to protect the life of the proposed patient or others or as provided under 
223.21 	subdivision 1a, no person subject to the provisions of this chapter shall be confined in a 
223.22 	jail or correctional institution, except pursuant to chapter 242 or 244.

223.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

223.24 	Sec. 12. Minnesota Statutes 2006, section 253B.045, is amended by adding a 
223.25 	subdivision to read:
223.26 		Subd. 1a.Exception. A person who is being petitioned for commitment 
223.27 	under section 253B.185 and who is placed under a judicial hold order under section 
223.28 	253B.07, subdivision 2b or 7, may be confined at a Department of Corrections or a 
223.29 	county correctional or detention facility, rather than a secure treatment facility, until a 
223.30 	determination of the commitment petition as specified in this subdivision.
224.1 	(a) A court may order that a person who is being petitioned for commitment under 
224.2 	section 253B.185 be confined in a Department of Corrections facility pursuant to the 
224.3 	judicial hold order under the following circumstances and conditions:
224.4 	(1) The person is currently serving a sentence in a Department of Corrections 
224.5 	facility and the court determines that the person has made a knowing and voluntary (i) 
224.6 	waiver of the right to be held in a secure treatment facility and (ii) election to be held in a 
224.7 	Department of Corrections facility. The order confining the person in the Department of 
224.8 	Corrections facility shall remain in effect until the court vacates the order or the person's 
224.9 	criminal sentence and conditional release term expire.
224.10 	In no case may the person be held in a Department of Corrections facility pursuant 
224.11 	only to this subdivision, and not pursuant to any separate correctional authority, for more 
224.12 	than 210 days.
224.13 	(2)  A person who has elected to be confined in a Department of Corrections facility 
224.14 	under this subdivision may revoke the election by filing a written notice of intent to revoke 
224.15 	the election with the court and serving the notice upon the Department of Corrections and 
224.16 	the county attorney. The court shall order the person transferred to a secure treatment 
224.17 	facility within 15 days of the date that the notice of revocation was filed with the court, 
224.18 	except that, if the person has additional time to serve in prison at the end of the 15-day 
224.19 	period, the person shall not be transferred to a secure treatment facility until the person's 
224.20 	prison term expires. After a person has revoked an election to remain in a Department of 
224.21 	Corrections facility under this subdivision, the court may not adopt another election to 
224.22 	remain in a Department of Corrections facility without the agreement of both parties and 
224.23 	the Department of Corrections.
224.24 	(3) Upon petition by the commissioner of corrections, after notice to the parties 
224.25 	and opportunity for hearing and for good cause shown, the court may order that the 
224.26 	person's place of confinement be changed from the Department of Corrections to a secure 
224.27 	treatment facility.
224.28 	(4) While at a Department of Corrections facility pursuant to this subdivision, the 
224.29 	person shall remain subject to all rules and practices applicable to correctional inmates in 
224.30 	the facility in which the person is placed, including, but not limited to, the powers and 
224.31 	duties of the commissioner of corrections under section 241.01, powers relating to use of 
224.32 	force under section 243.52, and the right of the commissioner of corrections to determine 
224.33 	the place of confinement in a prison, reformatory, or other facility.
224.34 	(5) A person may not be confined in a Department of Corrections facility under this 
224.35 	provision beyond the end of the person's executed sentence or the end of any applicable 
224.36 	conditional release period, whichever is later. If a person confined in a Department of 
225.1 	Corrections facility pursuant to this provision reaches the person's supervised release 
225.2 	date and is subject to a period of conditional release, the period of conditional release 
225.3 	shall commence on the supervised release date even though the person remains in the 
225.4 	Department of Corrections facility pursuant to this provision. At the end of the later of 
225.5 	the executed sentence or any applicable conditional release period, the person shall be 
225.6 	transferred to a secure treatment facility.
225.7 	(6) Nothing in this section may be construed to establish a right of an inmate in a 
225.8 	state correctional facility to participate in sex offender treatment. This section must be 
225.9 	construed in a manner consistent with the provisions of section 244.03.
225.10 	(b) The committing county may offer a person who is being petitioned for 
225.11 	commitment under section 253B.185 and who is placed under a judicial hold order under 
225.12 	section 253B.07, subdivision 2b or 7, the option to be held in a county correctional or 
225.13 	detention facility rather than a secure treatment facility, under such terms as may be agreed 
225.14 	to by the county, the commitment petitioner, and the commitment respondent. If a person 
225.15 	makes such an election under this paragraph, the court hold order shall specify the terms 
225.16 	of the agreement, including the conditions for revoking the election.

225.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

225.18 	Sec. 13. Minnesota Statutes 2006, section 253B.045, subdivision 2, is amended to read:
225.19 		Subd. 2.Facilities. Each county or a group of counties shall maintain or provide 
225.20 	by contract a facility for confinement of persons held temporarily for observation, 
225.21 	evaluation, diagnosis, treatment, and care. When the temporary confinement is provided 
225.22 	at a regional treatment center, the commissioner shall charge the county of financial 
225.23 	responsibility for the costs of confinement of persons hospitalized under section 253B.05, 
225.24 	subdivisions 1 and 2, and section 253B.07, subdivision 2b, except that the commissioner 
225.25 	shall bill the responsible health plan first. If the person has health plan coverage, but the 
225.26 	hospitalization does not meet the criteria in subdivision 6 or section 62M.07, 62Q.53, 
225.27 	or 62Q.535, the county is responsible. When a person is temporarily confined in a 
225.28 	Department of Corrections facility solely under subdivision 1a, and not based on any 
225.29 	separate correctional authority: (i) the commissioner of corrections may charge the 
225.30 	county of financial responsibility for the costs of confinement; and (ii) the Department of 
225.31 	Human Services shall use existing appropriations to fund all remaining nonconfinement 
225.32 	costs. "County of financial responsibility" means the county in which the person resides 
225.33 	at the time of confinement or, if the person has no residence in this state, the county 
225.34 	which initiated the confinement. The charge for confinement in a facility operated by the 
225.35 	commissioner of human services shall be based on the commissioner's determination of 
226.1 	the cost of care pursuant to section 246.50, subdivision 5. When there is a dispute as to 
226.2 	which county is the county of financial responsibility, the county charged for the costs of 
226.3 	confinement shall pay for them pending final determination of the dispute over financial 
226.4 	responsibility. Disputes about the county of financial responsibility shall be submitted to 
226.5 	the commissioner to be settled in the manner prescribed in section 256G.09. 

226.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

226.7 	Sec. 14. Minnesota Statutes 2007 Supplement, section 253B.185, subdivision 1b, 
226.8 	is amended to read:
226.9 		Subd. 1b.County attorney access to data. Notwithstanding sections 144.291 
226.10 	to 144.298; 245.467, subdivision 6; 245.4876, subdivision 7; 260B.171; 260B.235, 
226.11 	subdivision 8; 260C.171; and 609.749, subdivision 6, or any provision of chapter 13 
226.12 	or other state law, prior to filing a petition for commitment as a sexual psychopathic 
226.13 	personality or as a sexually dangerous person, and upon notice to the proposed patient, 
226.14 	the county attorney or the county attorney's designee may move the court for an order 
226.15 	granting access to any records or data, to the extent it relates to the proposed patient, for 
226.16 	the purpose of determining whether good cause exists to file a petition and, if a petition 
226.17 	is filed, to support the allegations set forth in the petition. 
226.18 	The court may grant the motion if: (1) the Department of Corrections refers the case 
226.19 	for commitment as a sexual psychopathic personality or a sexually dangerous person; or 
226.20 	(2) upon a showing that the requested category of data or records may be relevant to 
226.21 	the determination by the county attorney or designee. The court shall decide a motion 
226.22 	under this subdivision within 48 hours after a hearing on the motion. Notice to the 
226.23 	proposed patient need not be given upon a showing that such notice may result in harm or 
226.24 	harassment of interested persons or potential witnesses. Notwithstanding any provision 
226.25 	of chapter 13 or other state law, a county attorney considering the civil commitment of a 
226.26 	person under this section may obtain records and data from the Department of Corrections 
226.27 	or any probation or parole agency in this state upon request, without a court order, for the 
226.28 	purpose of determining whether good cause exists to file a petition and, if a petition is 
226.29 	filed, to support the allegations set forth in the petition. At the time of the request for 
226.30 	the records, the county attorney shall provide notice of the request to the person who is 
226.31 	the subject of the records.
226.32 	Data collected pursuant to this subdivision shall retain their original status and, if not 
226.33 	public, are inadmissible in any court proceeding unrelated to civil commitment, unless 
226.34 	otherwise permitted.

227.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

227.2 	Sec. 15. Minnesota Statutes 2006, section 253B.185, subdivision 5, is amended to read:
227.3 		Subd. 5.Financial responsibility. (a) For purposes of this subdivision, "state 
227.4 	facility" has the meaning given in section 246.50 and also includes a Department of 
227.5 	Corrections facility when the proposed patient is confined in such a facility pursuant to 
227.6 	section 253B.045, subdivision 1a. 
227.7 	(b) Notwithstanding sections 246.54, 253B.045, and any other law to the contrary, 
227.8 	when a petition is filed for commitment under this section pursuant to the notice required 
227.9 	in section 244.05, subdivision 7, the state and county are each responsible for 50 percent of 
227.10 	the cost of the person's confinement at a state facility or county jail, prior to commitment. 
227.11 	(c) The county shall submit an invoice to the state court administrator for 
227.12 	reimbursement of the state's share of the cost of confinement.
227.13 	(d) Notwithstanding paragraph (b), the state's responsibility for reimbursement is 
227.14 	limited to the amount appropriated for this purpose.

227.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

227.16 	Sec. 16. Laws 2007, chapter 54, article 1, section 11, is amended to read:

227.17
227.18	Sec. 11. PEACE OFFICER STANDARDS 
AND TRAINING (POST) BOARD
 	$ 
	4,296,000 
 4,271,000
	$ 
	4,278,000
4,328,000
	
227.19 	Excess Amounts Transferred. This 
227.20 	appropriation is from the peace officer 
227.21 	training account in the special revenue fund. 
227.22 	Any new receipts credited to that account 
227.23 	in the first year in excess of $4,296,000
227.24 	$4,271,000 must be transferred and credited 
227.25 	to the general fund. Any new receipts 
227.26 	credited to that account in the second year 
227.27 	in excess of $4,278,000 $4,328,000 must be 
227.28 	transferred and credited to the general fund. 
227.29 	Peace Officer Training Reimbursements.
227.30 	$3,159,000 the first year and $ 3,159,000 the 
227.31 	second year are for reimbursements to local 
227.32 	governments for peace officer training costs. 
228.1 	No Contact Orders. The board shall: (1) 
228.2 	revise and update preservice courses and 
228.3 	develop in-service training courses related 
228.4 	to no contact orders in domestic violence 
228.5 	cases and domestic violence dynamics; and 
228.6 	(2) reimburse peace officers who have taken 
228.7 	training courses described in clause (1). 
228.8 	At a minimum, the training must include 
228.9 	instruction in the laws relating to no contact 
228.10 	orders and address how to best coordinate 
228.11 	law enforcement resources relating to no 
228.12 	contact orders. In addition, the training 
228.13 	must include a component to instruct peace 
228.14 	officers on doing risk assessments of the 
228.15 	escalating factors of lethality in domestic 
228.16 	violence cases. The board must consult with 
228.17 	a statewide domestic violence organization 
228.18 	in developing training courses. The board 
228.19 	shall utilize a request for proposal process in 
228.20 	awarding training contracts. The recipient 
228.21 	of the training contract must conduct these 
228.22 	trainings with advocates or instructors from 
228.23 	a statewide domestic violence organization. 
228.24 	Beginning on January 1, 2008, the board may 
228.25 	not approve an in-service training course 
228.26 	relating to domestic abuse that does not 
228.27 	comply with this section.

228.28 	Sec. 17. WORKING GROUP ON CONTROLLED SUBSTANCE LAWS; 
228.29 	REPORT TO LEGISLATURE.
 228.30 		Subdivision 1.Establishment; membership; staff. (a) By July 1, 2008, the chair 
228.31 	of the house Public Safety Finance Division and the chair of the senate Public Safety 
228.32 	Budget Division shall jointly appoint a working group on the state's controlled substance 
228.33 	laws. The working group shall include:
228.34 	(1) two representatives of the Minnesota County Attorneys Association;
228.35 	(2) two representatives of the Board of Public Defense;
229.1 	(3) three representatives of state law enforcement associations, including one 
229.2 	sheriff, one chief of police, and one member of the Minnesota Police and Peace Officers 
229.3 	Association;
229.4 	(4) two representatives of the Judicial Council;
229.5 	(5) one representative from community corrections or probation;
229.6 	(6) one expert in the fields of drug treatment and controlled substance laws;
229.7 	(7) one individual who is not affiliated with any of the associations in clauses (1) to 
229.8 	(6) and who has relevant experience related to sentencing policy or the criminal justice 
229.9 	field; and
229.10 	(8) four community members who reside in an area adversely affected by controlled 
229.11 	substance crimes and violent crimes, one of whom is a member of a community crime 
229.12 	prevention organization.
229.13 	(b) Staff support for the working group shall be provided by the Sentencing 
229.14 	Guidelines Commission.
229.15 		Subd. 2.Subject matter. (a) The working group must review, assess, and make 
229.16 	specific recommendations regarding the following alternatives for modification and 
229.17 	application of Minnesota's controlled substance laws:
229.18 	(1) revising the threshold amounts for Minnesota's controlled substance crimes;
229.19 	(2) establishing a separate sentencing guidelines grid for drug offenses;
229.20 	(3) establishing additional aggravating factors so as to target certain particularly 
229.21 	dangerous offenders;
229.22 	(4) revising the criminal history point calculations for repeat drug offenders;
229.23 	(5) maximizing the use of deferred prosecutions for low-level drug offenders under 
229.24 	Minnesota Statutes, section 152.18 throughout the state; and
229.25 	(6) increasing the use of the early release program for nonviolent controlled 
229.26 	substance offenders who successfully complete drug treatment while incarcerated as 
229.27 	provided in Minnesota Statutes, section 244.055.
229.28 	(b) As part of its review of the various possible reforms, the working group may 
229.29 	also study and consider:
229.30 	(1) the significance, if any, of current rates of departure from presumptive guidelines 
229.31 	sentences for controlled substance crimes;
229.32 	(2) the significance, if any, of current rates of departure from presumptive guidelines 
229.33 	sentences for controlled substance crimes for identifiable categories of offenders;
229.34 	(3) the impact that recent United States Supreme Court criminal sentencing decisions 
229.35 	have on implementing further reform;
229.36 	(4) the barriers to comparing Minnesota's sentencing data with data from other states;
230.1 	(5) strategies for imposing probation and supervised release violations on drug 
230.2 	offenders;
230.3 	(6) strategies for increasing the efficacy of programs that are now available to treat 
230.4 	drug offenders;
230.5 	(7) the likely impact of any recommended change in policy upon victims of 
230.6 	drug-related crimes and the neighborhoods in which these crimes occur;
230.7 	(8) the likely impact of any recommended change in policy upon the efficacy of law 
230.8 	enforcement, prosecution, public defender, or court personnel; or
230.9 	(9) any other sentencing-related matter that the working group sees fit to consider.
230.10 		Subd. 3.Report to legislature. The working group shall report its findings and 
230.11 	recommendations to the chair of the house Public Safety Finance Division and the chair of 
230.12 	the senate Public Safety Budget Division by January 16, 2009.

230.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

230.14 	ARTICLE 12
230.15 	STATE GOVERNMENT FINANCE

230.16	Section 1. SUMMARY OF APPROPRIATIONS.
 	
230.17 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
230.18 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 148, article 1, to 
230.19 	the agencies and for the purposes specified in this article. The appropriations are from the 
230.20 	general fund or another named fund and are available for the fiscal years indicated for 
230.21 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
230.22 	to or subtraction from the appropriation listed under them is available for the fiscal year 
230.23 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
230.24 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
230.25 	day following final enactment.

230.26				APPROPRIATIONS
	
230.27				Available for the Year
	
230.28				Ending June 30
	
230.29					2008
		2009

230.30	Sec. 2. LEGISLATURE
 	$
	-0-
	$
	(1,662,000)

230.31	Subdivision 1.Senate
 		-0-
		(710,000)
	
230.32 	The base budget for the senate shall 
230.33 	be $22,724,000 in fiscal year 2010 and 
230.34 	$22,724,000 in fiscal year 2011.

231.1	Subd. 2.House of Representatives
 		-0-
		(952,000)
	
231.2 	The base budget for the house of 
231.3 	representatives shall be $30,551,000 in fiscal 
231.4 	year 2010 and $30,551,000 in fiscal year 
231.5 	2011.

231.6	Sec. 3. GOVERNOR
 	$
	-0-
	$
	(113,000)

231.7	Sec. 4. STATE AUDITOR
 	$
	-0-
	$
	(42,000)

231.8	Sec. 5. ATTORNEY GENERAL
 	$
	-0-
	$
	(749,000)

231.9	Sec. 6. SECRETARY OF STATE
 	$
	-0-
	$
	(195,000)
	
231.10 	The base budget for the secretary of state 
231.11 	shall be $6,134,000 in fiscal year 2010 and 
231.12 	$6,301,000 in fiscal year 2011.

231.13
231.14	Sec. 7. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	-0-
	$
	(157,000)
	
231.15 	The base budget for the Office of Enterprise 
231.16 	Technology shall be $6,202,000 in fiscal year 
231.17 	2010 and $6,202,000 in fiscal year 2011.

231.18	Sec. 8. ADMINISTRATION
 	$
	-0-
	$
	(1,039,000)
	
231.19 	(a) $885,000 of the reduction in this section 
231.20 	is from the appropriation for Department of 
231.21 	Public Safety relocation expenses.
231.22 	(b) The reduction in this section must not be 
231.23 	applied to the Land Management Information 
231.24 	Center or the Environmental Quality Board.
231.25 	(c) $2,000,000 of the balance in the facilities 
231.26 	repair and replacement account in the special 
231.27 	revenue fund is cancelled to the general 
231.28 	fund. This amount is in addition to amounts 
231.29 	transferred under Minnesota Statutes, section 
231.30 	16B.24, subdivision 5, paragraph (d).

232.1	Sec. 9. FINANCE
 	$
	-0-
	$
	(312,000)

232.2	Subdivision 1.State Financial Management
 		-0-
		(178,000)

232.3
232.4	Subd. 2.Information and Management 
Services
 		-0-
		(134,000)
	
232.5 	After the Departments of Finance and 
232.6 	Employee Relations merge as directed in 
232.7 	Laws 2007, chapter 148, article 2, section 80, 
232.8 	the commissioner of finance may reallocate 
232.9 	fiscal year 2009 general fund appropriation 
232.10 	reductions between programs within the 
232.11 	merged agency. Any reallocation of funds 
232.12 	shall be shown in the program appropriations 
232.13 	base for fiscal years 2010 and 2011 according 
232.14 	to Minnesota Statutes, section 16A.11, 
232.15 	subdivision 3, paragraph (b).

232.16	Sec. 10. EMPLOYEE RELATIONS
 	$
	-0-
	$
	(109,000)
	
232.17 	The base budget for employee relations 
232.18 	shall be $5,350,000 in fiscal year 2010 and 
232.19 	$5,350,000 in fiscal year 2011 to reflect the 
232.20 	reduction and a transfer to the Department of 
232.21 	Health for the merger in Laws 2007, chapter 
232.22 	148, article 2, section 80.

232.23	Sec. 11. REVENUE
 	$
	-0-
	$
	1,361,000

232.24	Subdivision 1.Tax Compliance; Appropriation
 					
232.25 	(a) The commissioner of revenue shall 
232.26 	undertake expanded tax compliance and 
232.27 	collection activities sufficient to collect 
232.28 	$6,723,000 in revenue for the general fund 
232.29 	for fiscal year 2009 in excess of the sum of:
232.30 	(1) the amount forecast to be collected by the 
232.31 	commissioner of finance for that fiscal year 
232.32 	in the February 2008 forecast; and
232.33 	(2) the appropriation under paragraph (c).
233.1 	(b) The commissioner shall periodically 
233.2 	report to the chairs of committees of the 
233.3 	house of representative and senate with 
233.4 	jurisdiction over taxation or state government 
233.5 	operations on the measures undertaken 
233.6 	under this section. The commissioner 
233.7 	may make recommendations to the 2009 
233.8 	legislature for changes in the law to 
233.9 	improve compliance with the tax law, 
233.10 	such as expanded information reporting or 
233.11 	withholding requirements that would permit 
233.12 	the commissioner to satisfy the requirements 
233.13 	of this section in the most cost effective and 
233.14 	reasonable manner possible.
233.15 	(c) $2,241,000 is appropriated from the 
233.16 	general fund for fiscal year 2009 to the 
233.17 	commissioner of revenue to finance the 
233.18 	activities authorized by this section.
233.19 	(d) The commissioner must maximize the 
233.20 	use of telecommuting by employees when 
233.21 	implementing any tax compliance and 
233.22 	collection activities.

233.23
233.24
233.25	Subd. 2.Appropriation to the Commissioner 
of Revenue; Financial Institution Data Match 
and Payment of Fees and Administrative Costs
 					
233.26 	$250,000 is appropriated annually from the 
233.27 	general fund to the commissioner of revenue 
233.28 	to make payments to financial institutions 
233.29 	in exchange for performing data matches 
233.30 	between account information held by 
233.31 	financial institutions and the commissioner's 
233.32 	database of tax debtors as authorized 
233.33 	by Minnesota Statutes, section 13B.07, 
233.34 	subdivision 7. $110,000 is appropriated 
233.35 	annually from the general fund to the 
233.36 	commissioner of revenue for the costs of 
234.1 	administering the data match system under 
234.2 	Minnesota Statutes, section 13B.07.

234.3
234.4	Subd. 3.Appropriation to the Commissioner of 
Finance; 2008 Budget Reserve Escrow Account
 					
234.5 	$14,000,000 is appropriated from the budget 
234.6 	reserve to the commissioner of finance and 
234.7 	shall be placed in the budget reserve escrow 
234.8 	account. The commissioner of finance may 
234.9 	use this appropriation to support a guarantee 
234.10 	by the state of Minnesota that private money 
234.11 	will be raised to pay the Minneapolis-St. Paul 
234.12 	Host Committee's share of expenses for the 
234.13 	2008 Republican National Convention in St. 
234.14 	Paul. The terms of the state guarantee will be 
234.15 	negotiated by the commissioner of finance. 
234.16 	Any money advanced to the Host Committee 
234.17 	under the state guarantee must be repaid by 
234.18 	the Host Committee to the commissioner 
234.19 	of finance no later than June 30, 2009, and 
234.20 	deposited in the budget reserve fund. Any 
234.21 	unspent portion of the appropriation cancels 
234.22 	to the budget reserve on June 30, 2009.

234.23 	Sec. 12. Minnesota Statutes 2006, section 3.855, subdivision 3, is amended to read:
234.24 		Subd. 3.Other salaries and compensation plans. The commission shall also:
234.25 	(1) review and approve, reject, or modify a plan for compensation and terms and 
234.26 	conditions of employment prepared and submitted by the commissioner of employee 
234.27 	relations under section 43A.18, subdivision 2, covering all state employees who are not 
234.28 	represented by an exclusive bargaining representative and whose compensation is not 
234.29 	provided for by chapter 43A or other law; 
234.30 	(2) review and approve, reject, or modify a plan for total compensation and terms 
234.31 	and conditions of employment for employees in positions identified as being managerial 
234.32 	under section 43A.18, subdivision 3, whose salaries and benefits are not otherwise 
234.33 	provided for in law or other plans established under chapter 43A; 
235.1 	(3) review and approve, reject, or modify recommendations for salaries submitted 
235.2 	by the governor or other appointing authority under section 15A.0815, subdivision 5, 
235.3 	covering agency head positions listed in section 15A.0815; 
235.4 	(4) review and approve, reject, or modify recommendations for salaries of officials 
235.5 	of higher education systems under section 15A.081, subdivisions 7b and 7c; and
235.6 	(5) review and approve, reject, or modify plans for compensation, terms, and 
235.7 	conditions of employment proposed under section 43A.18, subdivisions 3a and 4; and
235.8 	(6) review and approve, reject, or modify the plan for compensation, terms, and 
235.9 	conditions of employment of classified employees in the office of the legislative auditor 
235.10 	under section 3.971, subdivision 2. 

235.11 	EFFECTIVE DATE. This section is effective January 1, 2009.

235.12 	Sec. 13. Minnesota Statutes 2006, section 3.971, subdivision 2, is amended to read:
235.13 		Subd. 2.Staff; compensation. The legislative auditor shall establish a Financial 
235.14 	Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this 
235.15 	section. Each division may be supervised by a deputy auditor, appointed by the legislative 
235.16 	auditor, with the approval of the commission, for a term coterminous with the legislative 
235.17 	auditor's term. The deputy auditors may be removed before the expiration of their terms 
235.18 	only for cause. The legislative auditor and deputy auditors may each appoint a confidential 
235.19 	secretary to serve at pleasure. The salaries and benefits of the legislative auditor, 
235.20 	deputy auditors and confidential secretaries shall be determined by the compensation 
235.21 	plan approved by the Legislative Coordinating Commission. The deputy auditors may 
235.22 	perform and exercise the powers, duties and responsibilities imposed by law on the 
235.23 	legislative auditor when authorized by the legislative auditor. The deputy auditors and the 
235.24 	confidential secretaries serve in the unclassified civil service, but all other employees of 
235.25 	the legislative auditor are in the classified civil service. Compensation for employees of 
235.26 	the legislative auditor in the classified service shall be governed by a plan prepared by 
235.27 	the legislative auditor and approved by the Legislative Coordinating Commission and 
235.28 	the legislature under section 3.855. While in office, a person appointed deputy for the 
235.29 	Financial Audit Division must hold an active license as a certified public accountant.

235.30 	EFFECTIVE DATE. This section is effective January 1, 2009. Classified 
235.31 	employees of the legislative auditor retain compensation provided on December 31, 2008, 
235.32 	until a new compensation plan is adopted under section 12.

235.33 	Sec. 14. [5.33] RETURNING COMBAT VETERANS.
236.1 	If any Minnesota business or nonprofit corporation, limited liability company, 
236.2 	cooperative, limited partnership, or limited liability partnership has been administratively 
236.3 	or statutorily dissolved, revoked, or terminated after December 31, 2006, for failure to file 
236.4 	an annual or periodic report with the Office of the Secretary of State during a calendar 
236.5 	year when an individual with substantial responsibility for the operation of the dissolved, 
236.6 	revoked, or terminated business or nonprofit corporation, limited liability company, 
236.7 	cooperative, limited partnership, or limited liability partnership was serving in active 
236.8 	military service in the armed forces of the United States, including the reserves or National 
236.9 	Guard, as defined in section 190.05, subdivision 5b or 5c, or was engaged in employment 
236.10 	outside of the United States essential to the prosecution of a war or to the national defense, 
236.11 	as designated by the United States Congress or the United States Department of Defense, 
236.12 	the secretary of state shall waive any reinstatement fee otherwise required by law.

236.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

236.14 	Sec. 15. Minnesota Statutes 2006, section 10A.071, subdivision 3, is amended to read:
236.15 		Subd. 3.Exceptions. (a) The prohibitions in this section do not apply if the gift is:
236.16 	(1) a contribution as defined in section 10A.01, subdivision 11;
236.17 	(2) services to assist an official in the performance of official duties, including 
236.18 	but not limited to providing advice, consultation, information, and communication in 
236.19 	connection with legislation, and services to constituents;
236.20 	(3) services of insignificant monetary value;
236.21 	(4) a plaque or similar memento recognizing individual services in a field of 
236.22 	specialty or to a charitable cause;
236.23 	(5) a trinket or memento costing with a resale value of $5 or less;
236.24 	(6) informational material of unexceptional value; or
236.25 	(7) food or a beverage given at a reception, meal, or meeting away from the 
236.26 	recipient's place of work by an organization before whom the recipient appears to make a 
236.27 	speech or answer questions as part of a program.
236.28 	(b) The prohibitions in this section do not apply if the gift is given:
236.29 	(1) because of the recipient's membership in a group, a majority of whose members 
236.30 	are not officials, and an equivalent gift is given to the other members of the group; or
236.31 	(2) by a lobbyist or principal who is a member of the family of the recipient, unless 
236.32 	the gift is given on behalf of someone who is not a member of that family.

236.33 	Sec. 16. [13B.07] TAX DEBTOR DATA MATCHES.
236.34 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
237.1 	(a) "Account" means demand deposit account, checking account, negotiable order of 
237.2 	withdrawal account, savings account, time deposit account, money market mutual fund 
237.3 	account, or certificate of deposit account, and any funds or property held by a financial 
237.4 	institution, as defined in paragraph (e).
237.5 	(b) "Account information" means the type of account, the account number, whether 
237.6 	the account is singly or jointly owned, and in the case of jointly owned accounts the name 
237.7 	and address of the nondebtor account owner if available.
237.8 	(c) "Commissioner" means the commissioner of revenue.
237.9 	(d) "Debtor" means a person whose property is subject to a tax lien and a notice of 
237.10 	lien has been filed by the commissioner as provided by section 270C.63, subdivision 2.
237.11 	(e) "Financial institution" means any of the following that do business in this state:
237.12 	(1) federal or state commercial banks and federal or state savings banks, including 
237.13 	savings and loan associations and cooperative banks;
237.14 	(2) federal and state chartered credit unions;
237.15 	(3) benefit associations;
237.16 	(4) life insurance companies;
237.17 	(5) safe deposit companies;
237.18 	(6) money market mutual funds; or
237.19 	(7) a similar entity that holds property or maintains accounts reflecting property 
237.20 	belonging to others.
237.21 	(f) "Person" means a person as defined in section 270C.01, subdivision 6.
237.22 		Subd. 2.Data match system established. The commissioner shall establish a 
237.23 	process for the comparison of account information data held by financial institutions with 
237.24 	the Department of Revenue's database of debtors. The commissioner shall inform the 
237.25 	financial industry of the requirements of this section and the means by which financial 
237.26 	institutions can comply.
237.27 		Subd. 3.Duty to provide data. Within 30 days of a request by the commissioner, 
237.28 	a financial institution shall provide to the commissioner the name, address, and account 
237.29 	information for each debtor who maintains an account at the financial institution. The 
237.30 	commissioner may request from a financial institution the data concerning any debtor 
237.31 	not more than four times a year.
237.32 		Subd. 4.Method to provide data. The commissioner must provide an electronic 
237.33 	list of debtors to the financial institution that includes debtors' name, address, and if an 
237.34 	individual, the last four digits of the Social Security number. The financial institution must 
237.35 	compare that data to the data maintained at the financial institution to identify which of the 
237.36 	listed debtors maintains an account at the financial institution.
238.1 		Subd. 5.Means to provide data. A financial institution must provide the required 
238.2 	data in encrypted form by secure electronic means authorized by the commissioner.
238.3 		Subd. 6.Access to data. (a) With regard to data on debtors provided by the 
238.4 	commissioner to a financial institution under subdivision 4, the financial institution shall 
238.5 	retain the reported information only until the financial institution's database is compared 
238.6 	against the commissioner's database. Data that does not pertain to an account holder at 
238.7 	the financial institution must be immediately destroyed, and no retention or publication 
238.8 	of that data shall be made by the financial institution. None of the data provided by the 
238.9 	commissioner may be used for solicitation or other commercial purposes by the financial 
238.10 	institutions or other commercial entities.
238.11 	(b) All account information provided by a financial institution that pertains to a 
238.12 	debtor listed in the commissioner's database must be incorporated into the commissioner's 
238.13 	database. Access to that data is governed by chapters 13 and 270B. Notwithstanding 
238.14 	section 16D.06, data collected pursuant to this section is available for the collection of 
238.15 	delinquent taxes only and is not available for other debt collection activities undertaken by 
238.16 	the state.
238.17 		Subd. 7.Fees. A financial institution may charge and collect a fee from the 
238.18 	commissioner for providing account information to the commissioner. The commissioner 
238.19 	may pay a financial institution up to $150 each quarter. The commissioner shall develop 
238.20 	procedures for the financial institutions to charge and collect the fee. Payment of the fee 
238.21 	is limited by the amount of the appropriation for this purpose. If the appropriation is 
238.22 	insufficient, or if fund availability in the fourth quarter would allow payments for actual 
238.23 	costs in excess of $150, the commissioner shall prorate the available funds among the 
238.24 	financial institutions that have submitted a claim for the fee. No financial institution shall 
238.25 	charge or collect a fee that exceeds its actual costs of complying with this section.
238.26 		Subd. 8.Failure to respond to request for information. The commissioner shall 
238.27 	send a written notice of noncompliance to a financial institution that fails to respond to a 
238.28 	first written request for information under this section. The notice must be sent by certified 
238.29 	mail and must explain the requirements of this section and advise the financial institution 
238.30 	of the penalty for noncompliance. A financial institution that receives a second notice of 
238.31 	noncompliance is subject to a civil penalty of $1,000 for its failure to comply. A financial 
238.32 	institution that continues to fail to comply with this section is subject to a civil penalty of 
238.33 	$5,000 for the third and each subsequent failure to comply. These penalties are imposed 
238.34 	and collected under section 270C.33, subdivision 4, paragraph (a), clause (5).
239.1 		Subd. 9.Confidentiality. A financial institution furnishing a report to the 
239.2 	commissioner under this section is prohibited from disclosing to a debtor that the name of 
239.3 	the debtor has been received from or furnished to the commissioner.
239.4 		Subd. 10.Immunity. A financial institution that provides or reasonably attempts to 
239.5 	provide information to the commissioner in compliance with this section is not liable to 
239.6 	any person for disclosing the information or for taking any other action in good faith as 
239.7 	authorized by this section.
239.8 		Subd. 11.Civil action for unauthorized disclosure by financial institution. (a) 
239.9 	An account holder may bring a civil action in district court against a financial institution 
239.10 	for unauthorized disclosure of data received from the commissioner under subdivision 4. 
239.11 	A financial institution found to have violated this subdivision shall be liable as provided in 
239.12 	paragraph (b) or (c).
239.13 	(b) Any financial institution that willfully and maliciously discloses data received 
239.14 	from the commissioner under subdivision 4 is liable to that account holder in an amount 
239.15 	equal to the sum of:
239.16 	(1) any actual damages sustained by the account holder as a result of the disclosure; 
239.17 	and
239.18 	(2) in the case of any successful action to enforce any liability under this subdivision, 
239.19 	the costs of the action taken plus reasonable attorney fees as determined by the court.
239.20 	(c) Any financial institution that negligently discloses data received from the 
239.21 	commissioner under subdivision 4 is liable to that account holder in an amount equal to 
239.22 	any actual damages sustained by the account holder as a result of the disclosure.
239.23 	(d) A financial institution shall not be held liable in any action brought under this 
239.24 	subdivision if the financial institution shows, by a preponderance of evidence, that the 
239.25 	disclosure was not intentional and resulted from a bona fide error notwithstanding the 
239.26 	maintenance of procedures reasonably adopted to avoid any error.

239.27 	EFFECTIVE DATE. This section is effective July 1, 2008.

239.28 	Sec. 17. Minnesota Statutes 2006, section 16A.133, subdivision 1, is amended to read:
239.29 		Subdivision 1.Payroll direct deposit and deductions. An agency head in the 
239.30 	executive, judicial, and legislative branch shall, upon written request signed by an 
239.31 	employee, directly deposit all or part of an employee's pay to those credit unions or 
239.32 	financial institutions, as defined in section 47.015, designated by the employee. 
239.33 	An agency head in any branch may, upon written request of an employee, deduct 
239.34 	from the pay of the employee a requested amount to be paid to the Minnesota Benefit 
239.35 	Association, or to any organization contemplated by section 179A.06, of which the 
240.1 	employee is a member, or to a political action committee covered under a collective 
240.2 	bargaining agreement. If an employee has more than one account with the Minnesota 
240.3 	Benefit Association or more than one organization under section 179A.06, only the 
240.4 	Minnesota Benefit Association and, one organization, as defined under section 179A.06,
240.5 	and one political action committee may be paid money by payroll deduction from the 
240.6 	employee's pay. 

240.7 	Sec. 18. [16A.1395] USE OF STATE FUNDS TO MISIDENTIFY AN AGENCY 
240.8 	PROHIBITED.
240.9 	A state appropriation may not be used to identify an executive branch state agency by 
240.10 	a name other than the name assigned to it by law. It is a misuse of state funds for the head 
240.11 	of an executive branch state agency to use state funds to print agency stationery or other 
240.12 	official materials that identify the agency with a name other than the name assigned by law.

240.13 	Sec. 19. Minnesota Statutes 2006, section 16B.281, subdivision 3, is amended to read:
240.14 		Subd. 3.Notice to agencies; determination of surplus. On or before October 1 of 
240.15 	each year, the commissioner shall review the certifications of heads of each department or 
240.16 	agency provided for in this section. The commissioner of administration shall send written 
240.17 	notice to all state departments, agencies, and the University of Minnesota describing any 
240.18 	lands or tracts that may be declared surplus. If a department or agency or the University of 
240.19 	Minnesota desires custody of the lands or tracts, it shall submit a written request to the 
240.20 	commissioner, no later than four calendar weeks after mailing of the notice, setting forth 
240.21 	in detail its reasons for desiring to acquire and its intended use of the land or tract. The 
240.22 	commissioner shall then determine whether any of the lands described in the certifications 
240.23 	of the heads of the departments or agencies should be declared surplus and offered for 
240.24 	sale or otherwise disposed of by transferring custodial control to other requesting state 
240.25 	departments or agencies or to the Board of Regents of the University of Minnesota for 
240.26 	educational purposes, provided however that transfer to the Board of Regents shall not be 
240.27 	determinative of tax exemption or immunity. If the commissioner determines that any of 
240.28 	the lands are no longer needed for state purposes, the commissioner shall make findings of 
240.29 	fact, describe the lands, declare the lands to be surplus state land, and state the reasons for 
240.30 	the sale or disposition of the lands, and notify the Executive Council of the determination.

240.31 	Sec. 20. Minnesota Statutes 2006, section 16B.282, is amended to read:
240.32 	16B.282 SURVEYS, APPRAISALS, AND SALE.
241.1 		Subdivision 1.Appraisal; notice and offer to public bodies. (a) Before offering 
241.2 	any surplus state-owned lands for sale, the commissioner of administration may survey the 
241.3 	lands and, if the value of the lands is estimated to be $40,000 $50,000 or less, may have 
241.4 	the lands appraised. The commissioner shall have the lands appraised if the estimated 
241.5 	value is in excess of $40,000 $50,000.
241.6 	(b) The appraiser shall, before entering upon the duties of the office, take and 
241.7 	subscribe an oath that the appraiser will faithfully and impartially discharge the duties 
241.8 	of appraiser according to the best of the appraiser's ability and that the appraiser is not 
241.9 	interested, directly or indirectly, in any of the lands to be appraised or the timber or 
241.10 	improvements on the lands or in the purchase of the lands, timber, or improvements 
241.11 	and has entered into no agreement or combination to purchase any of the lands, timber, 
241.12 	or improvements. The oath shall be attached to the appraisal report. Appraisals must 
241.13 	be made by an appraiser that holds a state appraiser license issued by the Department 
241.14 	of Commerce. The appraisal must be in conformity with the Uniform Standards of 
241.15 	Professional Appraisal Practice of the Appraisal Foundation.
241.16 	(c) Before offering surplus state-owned lands for public sale, the lands shall first be 
241.17 	offered to the city, county, town, school district, or other public body corporate or politic 
241.18 	in which the lands are situated for public purposes and the lands may be sold for public 
241.19 	purposes for not less than the appraised value of the lands. To determine whether a public 
241.20 	body desires to purchase the surplus land, the commissioner shall give a written notice to 
241.21 	the governing body of each political subdivision whose jurisdictional boundaries include 
241.22 	or are adjacent to the surplus land. If a public body desires to purchase the surplus land, 
241.23 	it shall submit a written offer to the commissioner no later than two weeks after receipt 
241.24 	of notice setting forth in detail its reasons for desiring to acquire and its intended use of 
241.25 	the land. In the event that more than one public body tenders an offer, the commissioner 
241.26 	shall determine which party shall receive the property and shall submit written findings 
241.27 	regarding the decision. If lands are offered for sale for public purposes and if a public 
241.28 	body notifies the commissioner of its desire to acquire the lands, the public body may have 
241.29 	up to two years from the date of the accepted offer to commence payment for the lands 
241.30 	in the manner provided by law.
241.31 		Subd. 2.Public sale requirements. (a) Lands certified as surplus by the head of 
241.32 	a department or agency under section 16B.281 shall be offered for public sale by the 
241.33 	commissioner as provided in this subdivision. After complying with subdivision 1 and 
241.34 	before any public sale of surplus state-owned land is made and at least 30 days before the 
241.35 	sale, the commissioner of administration shall publish a notice of the sale at least once each 
241.36 	week for four successive weeks in a legal newspaper and also in a newspaper of general 
242.1 	distribution in the city or county in which the real property to be sold is situated. The notice 
242.2 	shall specify the time and place at which the sale will commence, a general description of 
242.3 	the lots or tracts to be offered, and a general statement of the terms of sale. Each tract or 
242.4 	lot shall be sold separately and shall be sold for no less than its appraised value.
242.5 	(b) Surplus state-owned land shall be sold for no less than the estimated or appraised 
242.6 	value. The minimum bid may include expenses incurred by the commissioner in rendering 
242.7 	the property saleable, including survey, appraisal, legal, advertising, and other expenses.
242.8 	(b) (c) Parcels remaining unsold after the offering may be sold to anyone agreeing 
242.9 	to pay the appraised value. The sale shall continue until all parcels are sold or until the 
242.10 	commissioner orders a reappraisal or withdraws the remaining parcels from sale.
242.11 	(c) Except as provided in section 16B.283, the cost of any survey or appraisal as 
242.12 	provided in subdivision 1 shall be added to and made a part of the appraised value of the 
242.13 	lands to be sold, whether to any political subdivision of the state or to a private purchaser 
242.14 	as provided in this subdivision.

242.15 	Sec. 21. Minnesota Statutes 2006, section 16B.283, is amended to read:
242.16 	16B.283 TERMS OF PAYMENT.
242.17 	No less than ten percent of the purchase price shall be paid at the time of sale with 
242.18 	the balance payable according to this section. If the purchase price of any lot or parcel is 
242.19 	$5,000 or less, the balance shall be paid within 90 days of the date of sale. If the purchase 
242.20 	price of any lot or parcel is in excess of $5,000, the balance shall be paid in equal annual 
242.21 	installments for no more than five years, at the option of the purchaser, with principal 
242.22 	and interest payable annually in advance at a rate equal to the rate in effect at the time 
242.23 	under section 549.09 on the unpaid balance, payable to the state treasury on or before 
242.24 	June 1 each year. Any installment of principal or interest may be prepaid. The purchaser 
242.25 	must pay at the time of sale ten percent of the total amount bid and the remainder of the 
242.26 	payment is due within 90 days of the sale date. A person who fails to make final payment 
242.27 	within 90 days of the sale date is in default. On default, all right, title, and interest of 
242.28 	the purchaser or heirs, representatives, or assigns of the purchaser in the premises shall 
242.29 	terminate without the state doing any act or thing. A record of the default must be made in 
242.30 	the state land records of the commissioner.

242.31 	Sec. 22. Minnesota Statutes 2006, section 16B.284, is amended to read:
242.32 	16B.284 CONTRACT FOR DEED AND QUITCLAIM DEED.
242.33 	In the event a purchaser elects to purchase surplus real property on an installment 
242.34 	basis, the commissioner shall enter into a contract for deed with the purchaser, in which 
243.1 	shall be set forth the description of the real property sold and the price of the property, 
243.2 	the consideration paid and to be paid for the property, the rate of interest, and time and 
243.3 	terms of payment. The contract for deed shall be made assignable and shall further set 
243.4 	forth that in case of the nonpayment of the annual principal or interest payment due by the 
243.5 	purchaser, or any person claiming under the purchaser, then the contract for deed, from the 
243.6 	time of the failure, is entirely void and of no effect and the state may be repossessed of the 
243.7 	lot or tract and may resell the lot or tract as provided in sections 16B.281 to 16B.287. In 
243.8 	the event the terms and conditions of a contract for deed are completely fulfilled or if a 
243.9 	purchaser makes a lump-sum payment for the subject property in lieu of entering into a 
243.10 	contract for deed, The commissioner of administration shall sign and cause to be issued a 
243.11 	quitclaim deed on behalf of the state. The quitclaim deed shall be in a form prescribed by 
243.12 	the attorney general and shall vest in the purchaser all of the state's interest in the subject 
243.13 	property except as provided in section 16B.286 16B.285. 

243.14 	Sec. 23. Minnesota Statutes 2006, section 16B.287, subdivision 2, is amended to read:
243.15 		Subd. 2.Payment of expenses. A portion of the proceeds from the sale equal in 
243.16 	amount to the survey, appraisal, legal, advertising, and other expenses incurred by the 
243.17 	commissioner of administration or other state official in rendering the property salable shall 
243.18 	be remitted to the account from which the expenses were paid and are appropriated and 
243.19 	immediately available for expenditure in the same manner as other money in the account.

243.20 	Sec. 24. Minnesota Statutes 2006, section 16C.16, subdivision 5, is amended to read:
243.21 		Subd. 5.Designation of targeted groups. (a) The commissioner of administration 
243.22 	shall periodically designate businesses that are majority owned and operated by women, 
243.23 	persons with a substantial physical disability, or specific minorities as targeted group 
243.24 	businesses within purchasing categories as determined by the commissioner. A group 
243.25 	may be targeted within a purchasing category if the commissioner determines there is a 
243.26 	statistical disparity between the percentage of purchasing from businesses owned by 
243.27 	group members and the representation of businesses owned by group members among all 
243.28 	businesses in the state in the purchasing category.
243.29 	(b) In addition to designations under paragraph (a), an individual business may be 
243.30 	included as a targeted group business if the commissioner determines that inclusion is 
243.31 	necessary to remedy discrimination against the owner based on race, gender, or disability 
243.32 	in attempting to operate a business that would provide goods or services to public agencies.
243.33 	(c) In addition to the designations under paragraphs (a) and (b), the commissioner of 
243.34 	administration shall designate businesses that are majority owned and operated by veterans 
244.1 	who have served in federal active service as defined in section 190.05, subdivision 5c, in 
244.2 	support of Operation Enduring Freedom or Operation Iraqi Freedom as targeted group 
244.3 	businesses within purchasing categories as determined by the commissioner. "Veteran" 
244.4 	has the meaning given in section 197.447, and also includes both currently serving and 
244.5 	honorably discharged members of the national guard and other military reserves.
244.6 	(c)(d) The designations of purchasing categories and businesses under paragraphs 
244.7 	(a) and, (b), and (c) are not rules for purposes of chapter 14, and are not subject to 
244.8 	rulemaking procedures of that chapter.

244.9 	EFFECTIVE DATE. This section is effective July 1, 2008, and applies to 
244.10 	procurement contract bid solicitations issued on and after that date.

244.11 	Sec. 25. Minnesota Statutes 2006, section 16E.01, subdivision 3, is amended to read:
244.12 		Subd. 3.Duties. (a) The office shall:
244.13 	(1) manage the efficient and effective use of available federal, state, local, and 
244.14 	public-private resources to develop statewide information and telecommunications 
244.15 	technology systems and services and its infrastructure;
244.16 	(2) approve state agency and intergovernmental information and telecommunications 
244.17 	technology systems and services development efforts involving state or intergovernmental 
244.18 	funding, including federal funding, provide information to the legislature regarding 
244.19 	projects reviewed, and recommend projects for inclusion in the governor's budget under 
244.20 	section 16A.11;
244.21 	(3) ensure cooperation and collaboration among state and local governments in 
244.22 	developing intergovernmental information and telecommunications technology systems 
244.23 	and services, and define the structure and responsibilities of a representative governance 
244.24 	structure;
244.25 	(4) cooperate and collaborate with the legislative and judicial branches in the 
244.26 	development of information and communications systems in those branches;
244.27 	(5) continue the development of North Star, the state's official comprehensive online 
244.28 	service and information initiative;
244.29 	(6) promote and collaborate with the state's agencies in the state's transition to an 
244.30 	effectively competitive telecommunications market;
244.31 	(7) collaborate with entities carrying out education and lifelong learning initiatives 
244.32 	to assist Minnesotans in developing technical literacy and obtaining access to ongoing 
244.33 	learning resources;
245.1 	(8) promote and coordinate public information access and network initiatives, 
245.2 	consistent with chapter 13, to connect Minnesota's citizens and communities to each 
245.3 	other, to their governments, and to the world;
245.4 	(9) promote and coordinate electronic commerce initiatives to ensure that Minnesota 
245.5 	businesses and citizens can successfully compete in the global economy;
245.6 	(10) manage and promote the regular and periodic reinvestment in the information 
245.7 	and telecommunications technology systems and services infrastructure so that state and 
245.8 	local government agencies can effectively and efficiently serve their customers;
245.9 	(11) facilitate the cooperative development of and ensure compliance with standards 
245.10 	and policies for information and telecommunications technology systems and services, 
245.11 	electronic data practices and privacy, and electronic commerce among international, 
245.12 	national, state, and local public and private organizations;
245.13 	(12) eliminate unnecessary duplication of existing information and 
245.14 	telecommunications technology systems and services provided by other public and private 
245.15 	organizations while building on the existing governmental, educational, business, health 
245.16 	care, and economic development infrastructures;
245.17 	(13) identify, sponsor, develop, and execute shared information and 
245.18 	telecommunications technology projects and ongoing operations; and
245.19 	(14) ensure overall security of the state's information and technology systems and 
245.20 	services.
245.21 	(b) The chief information officer in consultation with the commissioner of finance 
245.22 	must determine when it is cost-effective for agencies to develop and use shared 
245.23 	information and telecommunications technology systems and services for the delivery of 
245.24 	electronic government services. The chief information officer may require agencies to 
245.25 	use shared information and telecommunications technology systems and services. The 
245.26 	chief information officer shall establish reimbursement rates in cooperation with the 
245.27 	commissioner of finance to be billed to agencies and other governmental entities sufficient 
245.28 	to cover the actual development, operating, maintenance, and administrative costs of 
245.29 	the shared systems. The methodology for billing may include the use of interagency 
245.30 	agreements, or other means as allowed by law.
245.31 	(c) A state agency with any information and telecommunications technology project 
245.32 	that has a total expected project cost of more than $1,000,000, whether funded as part of 
245.33 	the biennial budget or by any other means, shall for the purpose of registration with the 
245.34 	office submit basic project startup documentation as specified by the office in both content 
245.35 	and format. Registration must occur prior to the date of commencement of the project 
245.36 	and before any project funding is requested or committed. Project leaders must: (1) 
246.1 	demonstrate that acceptable and sustainable project management methodology is being 
246.2 	followed for the project; (2) provide updates to the project documentation as changes 
246.3 	are proposed; and (3) regularly report on the current status of the project on a schedule 
246.4 	agreed to by the office.
246.5 	(d) The office must monitor progress on any active information and 
246.6 	telecommunications technology project that has a total expected project cost of more than 
246.7 	$1,000,000 and report on performance against plan in terms of time, scope, and budget. 
246.8 	Based on the determination of the chief information officer, the office must conduct an 
246.9 	independent project audit of the project. The audit analysis and evaluation by the office 
246.10 	of the projects registered under paragraph (c) must be presented to agency executive 
246.11 	sponsors, the project governance bodies, and the chief information officer. All reports and 
246.12 	responses must become part of the project record.
246.13 	(e) For any active information and telecommunications technology project that has a 
246.14 	total expected project cost of more than $5,000,000, an annual independent audit must be 
246.15 	performed that conforms to project audit principles published by the office.
246.16 	(f) The chief information officer shall report to the legislative committees with 
246.17 	jurisdiction over the office by January 15 of each year regarding the review process 
246.18 	required under paragraph (a), clause (2). The report must include a description of the 
246.19 	current status of each project reviewed by the office. The report must include the rationale 
246.20 	used for the determination made for each project.

246.21 	Sec. 26. Minnesota Statutes 2006, section 16E.03, subdivision 1, is amended to read:
246.22 		Subdivision 1.Definitions. For the purposes of chapter 16E, the following terms 
246.23 	have the meanings given them.
246.24 	(a) "Information and telecommunications technology systems and services" means 
246.25 	all computing and telecommunications hardware and software, the activities undertaken 
246.26 	to secure that hardware and software, and the activities undertaken to acquire, transport, 
246.27 	process, analyze, store, and disseminate information electronically. "Information and 
246.28 	telecommunications technology systems and services" includes all proposed expenditures 
246.29 	for computing and telecommunications hardware and software, security for that hardware 
246.30 	and software, and related consulting or other professional services.
246.31 	(b) "Information and telecommunications technology project" means an effort to 
246.32 	acquire or produce information and telecommunications technology systems and services.
246.33 	(c) "Telecommunications" means voice, video, and data electronic transmissions 
246.34 	transported by wire, wireless, fiber-optic, radio, or other available transport technology.
247.1 	(d) "Cyber security" means the protection of data and systems in networks connected 
247.2 	to the Internet.
247.3 	(e) "State agency" means an agency in the executive branch of state government and 
247.4 	includes the Minnesota Office of Higher Education, but does not include the Minnesota 
247.5 	State Colleges and Universities unless specifically provided elsewhere in this chapter.
247.6 	(f) "Total expected project cost" includes direct staff costs, all supplemental contract 
247.7 	staff and vendor costs, and costs of hardware and software development or purchase. 
247.8 	Breaking a project into several phases does not affect the cost threshold which must be 
247.9 	computed on the full cost of all aspects of the related subprojects.

247.10 	Sec. 27. Minnesota Statutes 2006, section 16E.04, subdivision 2, is amended to read:
247.11 		Subd. 2.Responsibilities. (a) In addition to other activities prescribed by law, the 
247.12 	office shall carry out the duties set out in this subdivision.
247.13 	(b) The office shall develop and establish a state information architecture to ensure 
247.14 	that state agency development and purchase of information and communications systems, 
247.15 	equipment, and services is designed to ensure that individual agency information systems 
247.16 	complement and do not needlessly duplicate or conflict with the systems of other agencies. 
247.17 	When state agencies have need for the same or similar public data, the chief information 
247.18 	officer, in coordination with the affected agencies, shall manage the most efficient and 
247.19 	cost-effective method of producing and storing data for or sharing data between those 
247.20 	agencies. The development of this information architecture must include the establishment 
247.21 	of standards and guidelines to be followed by state agencies. The office shall ensure 
247.22 	compliance with the architecture.
247.23 	(c) The office shall assist state agencies in the planning and management of 
247.24 	information systems so that an individual information system reflects and supports 
247.25 	the state agency's mission and the state's requirements and functions. Each agency 
247.26 	shall develop a strategic information technology plan. The office shall review and 
247.27 	approve agency technology plans to ensure consistency with enterprise information and 
247.28 	telecommunications technology strategy. By December 1 of each year, the office must 
247.29 	report to the legislative committees with jurisdiction over the office regarding the plans 
247.30 	under this paragraph.
247.31 	(d) The office shall review and approve agency requests for funding for the 
247.32 	development or purchase of information systems equipment or software before the 
247.33 	requests may be included in the governor's budget.
247.34 	(e) The office shall review major purchases of information systems equipment to:
248.1 	(1) ensure that the equipment follows the standards and guidelines of the state 
248.2 	information architecture;
248.3 	(2) ensure the agency's proposed purchase reflects a cost-effective policy regarding 
248.4 	volume purchasing; and
248.5 	(3) ensure that the equipment is consistent with other systems in other state agencies 
248.6 	so that data can be shared among agencies, unless the office determines that the agency 
248.7 	purchasing the equipment has special needs justifying the inconsistency.
248.8 	(f) The office shall review the operation of information systems by state agencies 
248.9 	and ensure that these systems are operated efficiently and securely and continually meet 
248.10 	the standards and guidelines established by the office. The standards and guidelines must 
248.11 	emphasize uniformity that is cost-effective for the enterprise, that encourages information 
248.12 	interchange, open systems environments, and portability of information whenever 
248.13 	practicable and consistent with an agency's authority and chapter 13.
248.14 	(g) The office shall conduct a comprehensive review at least every three years of 
248.15 	the information systems investments that have been made by state agencies and higher 
248.16 	education institutions. The review must include recommendations on any information 
248.17 	systems applications that could be provided in a more cost-beneficial manner by an outside 
248.18 	source. The office must report the results of its review to the legislature and the governor.

248.19 	Sec. 28. [43A.1816] LEAVE TO CARE FOR SIGNIFICANT OTHER.
248.20 	(a) An employee must be granted leave to the extent the employee's attendance is 
248.21 	necessary to care for a significant other due to the significant other's illness or disability, 
248.22 	up to a period of five days within a 12-month period. The leave must be unpaid, unless 
248.23 	otherwise provided in a collective bargaining agreement or compensation plan.
248.24 	(b) For purposes of this section, "significant other" means a person who has entered 
248.25 	into a committed interdependent relationship with another adult, where the adults:
248.26 	(1) are responsible for each other's basic common welfare;
248.27 	(2) share a common residence and intend to do so indefinitely;
248.28 	(3) are not related by blood or adoption to an extent that would prohibit marriage in 
248.29 	this state; and
248.30 	(4) are legally competent and qualified to enter into a contract.
248.31 	For purposes of this section, significant others may share a common residence even 
248.32 	if they do not have a legal right to possess the residence or one or both domestic partners 
248.33 	possess additional real property. If one significant other temporarily leaves the common 
248.34 	residence with the intention to return, the significant others continue to share a common 
248.35 	residence for the purposes of this section.

249.1 	Sec. 29. [43A.187] BLOOD DONATION LEAVE.
249.2 	A state employee must be granted leave from work with 100 percent of pay to donate 
249.3 	blood at a location away from the place of work. The total amount of leave used under this 
249.4 	paragraph may not exceed three hours in a 12-month period, and must be determined by 
249.5 	the employee. A state employee seeking leave from work under this section must provide 
249.6 	14 days notice to the appointing authority. This leave must not affect the employee's 
249.7 	vacation leave, pension, compensatory time, personal vacation days, sick leave, earned 
249.8 	overtime accumulation, or cause a loss of seniority. For the purposes of this section, "state 
249.9 	employee" does not include an employee of the Minnesota State Colleges and Universities.

249.10 	Sec. 30. Laws 2006, chapter 282, article 2, section 27, subdivision 4, is amended to 
249.11 	read:
249.12 		Subd. 4. Expiration. The commission expires December 31, 2008 June 30, 2009.

249.13 	Sec. 31. Laws 2007, chapter 148, article 1, section 7, is amended to read:

249.14	Sec. 7. SECRETARY OF STATE
 	$ 
	9,019,000 
	$ 
	6,497,000 

249.15	Appropriations by Fund 
	
249.16		2008 
	2009 
	
249.17	General 
	6,175,000 
	6,497,000 
	
249.18	Special Revenue 
	2,844,000 
		
249.19 	(a) $310,000 of this appropriation must be 
249.20 	transferred to the Help America Vote Act 
249.21 	account and is designated as a portion of the 
249.22 	match required by section 253(b)(5) of the 
249.23 	Help America Vote Act. 
249.24 	(b) $2,844,000 the first year is appropriated 
249.25 	from the Help America Vote Act account for 
249.26 	the purposes and uses authorized by federal 
249.27 	law. This appropriation is available until 
249.28 	June 30, 2009. 
249.29 	(c) Notwithstanding Laws 2005, chapter 
249.30 	162, section 34, subdivision 7, any balance 
249.31 	remaining in the Help America Vote Act 
249.32 	account after previous appropriations and the 
249.33 	appropriations in this section is appropriated 
250.1 	to the secretary of state for the purposes of 
250.2 	the account. This appropriation is available 
250.3 	until June 30, 2011.
250.4 	(d) The amount necessary to meet federal 
250.5 	requirements for interest payments and the 
250.6 	additional match for the Help America Vote 
250.7 	Act account is transferred from the general 
250.8 	fund appropriation to the Help America Vote 
250.9 	Act account.

250.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

250.11 	Sec. 32. Laws 2007, chapter 148, article 1, section 12, subdivision 4, is amended to 
250.12 	read:

250.13	Subd. 4. Administrative Management Services
 		5,672,000 
		5,218,000 
	
250.14 	(a) $125,000 the first year is to create an 
250.15 	Office of Grants Management to standardize 
250.16 	state grants management policies and 
250.17 	procedures. For the fiscal year beginning 
250.18 	July 1, 2008, the commissioner must 
250.19 	deduct up to $125,000 from state grants
250.20 	that are subject to Minnesota Statutes, 
250.21 	section 16B.97, to nongovernmental
250.22 	nonstate entities, as necessary to fund the 
250.23 	commissioner's duties under new Minnesota 
250.24 	Statutes, sections 16B.97 and 16B.98. 
250.25 	The amount deducted from appropriations 
250.26 	for these grants is transferred to the 
250.27 	commissioner for purposes of administering 
250.28 	these sections. 
250.29 	(b) $250,000 the first year and $250,000 
250.30 	the second year are to establish a small 
250.31 	agency resource team to consolidate and 
250.32 	streamline the human resources and financial 
250.33 	management activities for small state 
250.34 	agencies, boards, and councils. 
251.1 	(c) $500,000 the first year is a onetime 
251.2 	appropriation for a targeted group business 
251.3 	disparity study. The commissioner 
251.4 	must cooperate with units of local 
251.5 	government conducting similar studies. The 
251.6 	commissioner shall ensure that the results of 
251.7 	the study are kept current and that any new or 
251.8 	upgraded accounting or procurement systems 
251.9 	properly record purchases from minority and 
251.10 	female-owned businesses through the use of 
251.11 	state contracts, and the availability of bids 
251.12 	from those businesses. 
251.13 	(d) $74,000 the first year and $74,000 
251.14 	the second year are for the Council on 
251.15 	Developmental Disabilities. 
251.16 	(e) $140,000 in fiscal year 2008 and $140,000 
251.17 	in fiscal year 2009 are for a grant to the 
251.18 	Council on Developmental Disabilities 
251.19 	for the purpose of establishing a statewide 
251.20 	self-advocacy network for persons with 
251.21 	intellectual and developmental disabilities 
251.22 	(ID/DD). The self-advocacy network shall: 
251.23 	(1) ensure that persons with ID/DD are 
251.24 	informed of their rights in employment, 
251.25 	housing, transportation, voting, government 
251.26 	policy, and other issues pertinent to the 
251.27 	ID/DD community; 
251.28 	(2) provide public education and awareness 
251.29 	of the civil and human rights issues persons 
251.30 	with ID/DD face; 
251.31 	(3) provide funds, technical assistance, and 
251.32 	other resources for self-advocacy groups 
251.33 	across the state; and 
252.1 	(4) organize systems of communications 
252.2 	to facilitate an exchange of information 
252.3 	between self-advocacy groups. 
252.4 	This appropriation is in addition to any other 
252.5 	appropriations and must be added to the base 
252.6 	appropriation beginning in fiscal year 2010. 

252.7 	Sec. 33. MANAGERIAL POSITION REDUCTIONS.
 252.8 	The governor must reduce the total number of deputy commissioners, assistant 
252.9 	commissioners, positions designated as unclassified under authority of Minnesota Statutes, 
252.10 	section 43A.08, subdivision 1a, and governor's office personnel supported by interagency 
252.11 	agreements by 25 percent. This reduction must be achieved by June 30, 2009.

252.12 	Sec. 34. MINNEAPOLIS PARK AND RECREATION BOARD; 
252.13 	CONDEMNATION PROCEEDS.
 252.14 	Notwithstanding the provisions of Minnesota Statutes, section 16A.695, or any 
252.15 	other law, the Minneapolis Park and Recreation Board may retain the proceeds from the 
252.16 	condemnation of park lands or its interest in land necessary for the reconstruction and 
252.17 	expansion of marked Interstate Highway 35W at the Mississippi River in Minneapolis. 
252.18 	Proceeds received by the park board from the condemnation proceeding must be deposited 
252.19 	into a park land acquisition account controlled by the Minneapolis Park and Recreation 
252.20 	Board. Money in the account must be invested pursuant to Minnesota Statutes, chapter 
252.21 	118A, and interest shall accrue to this account. The park land acquisition account must 
252.22 	be used solely to acquire land for public park purposes adjacent to the Mississippi River 
252.23 	in Minneapolis. Lands acquired from the account must be included in the metropolitan 
252.24 	regional recreation open space system and are subject to the provisions of Minnesota 
252.25 	Statutes, section 16A.695, and laws governing metropolitan regional park land. The park 
252.26 	board shall provide an annual report to the commissioner of finance and the Metropolitan 
252.27 	Council regional administrator outlining the use of the funds in the park land acquisition 
252.28 	account until such time as no funds remain in the account.

252.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

252.30 	Sec. 35. LEGISLATORS' FORUM.
 252.31 	During the biennium ending June 30, 2009, the Legislative Coordinating 
252.32 	Commission must pay expenses associated with Minnesota legislators' participation in 
253.1 	a legislators' forum, through which Minnesota legislators meet with counterparts from 
253.2 	South Dakota, North Dakota, and Manitoba to discuss issues of mutual concern.

253.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

253.4 	Sec. 36. LCC STUDY.
 253.5 	The Legislative Coordinating Commission must report to the chairs of the house 
253.6 	and senate Finance Committees by January 15, 2009, on potential savings that could be 
253.7 	achieved by having the Legislative Coordinating Commission perform administrative 
253.8 	functions that currently are performed separately by the house of representatives and 
253.9 	the senate.

253.10 	Sec. 37. TEMPORARY HOURS OF SALE.
 253.11 	From August 29, 2008, through September 8, 2008, holders of an on-sale liquor 
253.12 	license may remain open and may serve alcohol until 4:00 a.m. each day, and holders of 
253.13 	an off-sale license may be open and sell alcohol between 8:00 a.m. and 10:00 p.m. on 
253.14 	Sunday, under the following conditions:
253.15 	(1) the holder of an on-sale intoxicating liquor license or the holder of an off-sale 
253.16 	liquor license must be located within a city or township, any part of which is within ten 
253.17 	miles of the site of the Republican National Convention; and
253.18 	(2) the licensing jurisdiction where the licensee is located must have approved the 
253.19 	additional hours of sale authorized in this section for all licensees within its jurisdiction.

253.20 	Sec. 38.  REPEALER.
 253.21 	Minnesota Statutes 2006, sections 16B.281, subdivisions 2, 4, and 5; 16B.285; 
253.22 	and 645.44, subdivision 19, are repealed.

253.23 	Sec. 39. EFFECTIVE DATE.
 253.24 	Except for those sections with a different effective date, this article is effective the 
253.25 	day following final enactment.

253.26 	ARTICLE 13
253.27 	MILITARY AFFAIRS

253.28	Section 1. SUMMARY OF APPROPRIATIONS.
 	
253.29 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
253.30 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 45, articles 1 
253.31 	to 3, to the agencies and for the purposes specified in this article. The appropriations 
254.1 	are from the general fund or another named fund and are available for the fiscal years 
254.2 	indicated for each purpose. The figures "2008" and "2009" used in this article mean 
254.3 	that the addition to or subtraction from the appropriation listed under them is available 
254.4 	for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. Supplemental 
254.5 	appropriations and reductions to appropriations for the fiscal year ending June 30, 2008, 
254.6 	are effective the day following final enactment.

254.7				APPROPRIATIONS
	
254.8				Available for the Year
	
254.9				Ending June 30
	
254.10					2008
		2009

254.11	Sec. 2. MILITARY AFFAIRS
 	$
		$
	52,000

254.12	Appropriations by Fund
	
254.13	General
	390,000
		
254.14	Special Revenue
	(338,000)
		
254.15 	$75,000 in fiscal year 2009 is to establish a 
254.16 	state enhancement of the employer support of 
254.17 	the guard and reserve program. The funding 
254.18 	base for this activity is $35,000 each year in 
254.19 	fiscal years 2010 and 2011.
254.20 	$135,000 in fiscal year 2009 is to make 
254.21 	$1,000 biannual bonus payments to National 
254.22 	Guard medics who meet recertification 
254.23 	requirements during the fiscal year.
254.24 	$180,000 in fiscal year 2009 is to add "state 
254.25 	navigator" positions to coordinate state 
254.26 	agency programs and activities to support 
254.27 	and assist soldiers and their families during 
254.28 	and after the reintegration process.
254.29 	$338,000 is a reduction in fiscal year 
254.30 	2009 from the special revenue fund 
254.31 	appropriation from the account established 
254.32 	in Minnesota Statutes, section 190.19. The 
254.33 	base appropriation in fiscal year 2010 and 
254.34 	2011 is $0.

255.1 	Sec. 3. Minnesota Statutes 2006, section 190.19, subdivision 1, is amended to read:
255.2 		Subdivision 1.Establishment. The Minnesota "Support Our Troops" account is 
255.3 	established in the special revenue fund. The account shall consist of contributions from 
255.4 	private sources and appropriations. Money in the account is appropriated in equal shares 
255.5 	to the Department of Military Affairs and the Department of Veterans Affairs.

255.6 	EFFECTIVE DATE. Notwithstanding Laws 2007, chapter 45, article 2, section 
255.7 	1, and article 3, section 2, subdivision 3, this section is effective for distribution of the 
255.8 	Minnesota "Support Our Troops" account the day following final enactment.

255.9 	Sec. 4. Minnesota Statutes 2007 Supplement, section 190.19, subdivision 2, is 
255.10 	amended to read:
255.11 		Subd. 2.Uses. (a) Money appropriated from the Minnesota "Support Our Troops" 
255.12 	account to the Department of Military Affairs may be used for:
255.13 	(1) grants directly to eligible individuals;
255.14 	(2) grants to one or more eligible foundations for the purpose of making grants to 
255.15 	eligible individuals, as provided in this section; or
255.16 	(3) veterans' services.; or
255.17 	(4) grants to family readiness groups chartered by the adjutant general.
255.18 	(b) As used in paragraph (a), the term, "eligible individual" includes any person 
255.19 	who is:
255.20 	(1) a member of the Minnesota National Guard or a reserve unit based in Minnesota 
255.21 	who has been called to active service as defined in section 190.05, subdivision 5;
255.22 	(2) a Minnesota resident who is a member of a military reserve unit not based 
255.23 	in Minnesota, if the member is called to active service as defined in section 190.05, 
255.24 	subdivision 5;
255.25 	(3) any other Minnesota resident performing active service for any branch of the 
255.26 	military of the United States; 
255.27 	(4) a person who served in one of the capacities listed in clause (1), (2), or (3) who 
255.28 	has current financial needs directly related to that service; and
255.29 	(5) a member of the immediate family of an individual identified in clause (1), (2), 
255.30 	(3), or (4). For purposes of this clause, "immediate family" means the individual's spouse 
255.31 	and minor children and, if they are dependents of the member of the military, the member's 
255.32 	parents, grandparents, siblings, stepchildren, and adult children.
255.33 	(c) As used in paragraph (a), the term "eligible foundation" includes any organization 
255.34 	that:
256.1 	(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue 
256.2 	Code;
256.3 	(2) has articles of incorporation under chapter 317A specifying the purpose of 
256.4 	the organization as including the provision of financial assistance to members of the 
256.5 	Minnesota National Guard and other United States armed forces reserves and their 
256.6 	families and survivors; and
256.7 	(3) agrees in writing to distribute any grant money received from the adjutant general 
256.8 	under this section to eligible individuals as defined in this section and in accordance 
256.9 	with any written policies and rules the adjutant general may impose as conditions of the 
256.10 	grant to the foundation.
256.11 	(d) The maximum grant awarded to an eligible individual under paragraph (a) in a 
256.12 	calendar year with funds from the Minnesota "Support Our Troops" account, either through 
256.13 	an eligible institution or directly from the adjutant general, may not exceed $2,000.

256.14 	Sec. 5. [192.341] STATE ENHANCED EMPLOYER SUPPORT OF GUARD 
256.15 	AND RESERVE (ESGR) PROGRAM.
256.16 	The adjutant general is authorized to establish and administer a state enhancement 
256.17 	to the federal Employer Support of Guard and Reserve (ESGR) Program. The adjutant 
256.18 	general shall develop policy and guidelines for the administration of the program 
256.19 	established under this section.

256.20 	Sec. 6. Minnesota Statutes 2006, section 192.501, is amended by adding a subdivision 
256.21 	to read:
256.22 		Subd. 1c.Medic recertification bonus program. (a) The adjutant general 
256.23 	may establish a program to provide a recertification bonus to eligible members of the 
256.24 	Minnesota National Guard who recertify as emergency medical technicians (EMTs) in 
256.25 	the National Guard within the limitations of this subdivision. The bonus payments are 
256.26 	intended to generally encourage a member's continuing certification as an EMT.
256.27 	(b) Eligibility for the recertification bonus is limited to a member of the National 
256.28 	Guard who:
256.29 	(1) is serving satisfactorily as determined by the adjutant general; and
256.30 	(2) has successfully completed the training required for recertification and warrants 
256.31 	the payment of a bonus.
256.32 	(c) The adjutant general may, within the limitations of this subdivision and other 
256.33 	applicable laws, determine additional eligibility criteria for the bonus, and must specify all 
256.34 	of the criteria in regulations and publish changes as necessary.
257.1 	(d) Payments under this subdivision must be made on a schedule that is determined 
257.2 	and published in department regulations by the adjutant general.

257.3 	Sec. 7. Minnesota Statutes 2006, section 192.501, is amended by adding a subdivision 
257.4 	to read:
257.5 		Subd. 2a.Usage of tuition and textbook reimbursement grant program by 
257.6 	spouse permitted. (a) Notwithstanding the eligibility limitations of subdivision 2, 
257.7 	paragraph (b), the spouse of a person eligible under subdivision 2, paragraph (b), is 
257.8 	eligible to use up to 12 semester hours per year, or the equivalent amount of quarter 
257.9 	credits, of that eligible person's unused tuition reimbursement benefit for each year of 
257.10 	service in the Minnesota National Guard after the eighth year of such service.
257.11 	(b) Total benefits under this subdivision cannot exceed the total unused portion of 
257.12 	the service member's benefit. A service member's and spouse's eligibility for tuition 
257.13 	reimbursement under this subdivision is limited by the provisions of subdivision 2, 
257.14 	paragraph (g).

257.15 	Sec. 8. Minnesota Statutes 2006, section 197.585, subdivision 5, is amended to read:
257.16 		Subd. 5.Expiration. This section expires at the end of the first fiscal year in which 
257.17 	the number of veterans enrolled in Minnesota public institutions of higher education is 
257.18 	fewer than 4,000, but no later than June 30, 2011.

257.19 	Sec. 9. STARBASE STUDY.
 257.20 	The appropriation in Laws 2007, chapter 45, article 3, section 2, subdivision 3, for 
257.21 	a longitudinal study measuring improvement in academic achievement as a result of 
257.22 	participation in the Starbase program is available until June 30, 2009. The Department of 
257.23 	Military Affairs must contract with the Wilder Foundation to conduct the study.

257.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

257.25 	Sec. 10. NATIONAL GUARD YOUTH CHALLENGE PROGRAM STUDY.
 257.26 	The adjutant general and the Department of Military Affairs shall study participation 
257.27 	by the Minnesota National Guard in the National Guard Youth Challenge Program 
257.28 	promoted by the National Guard Youth Foundation. The adjutant general shall report on 
257.29 	the study and make recommendations to the governor and the committees of the senate 
257.30 	and the house of representatives with jurisdiction over National Guard programs by 
257.31 	January 15, 2009. The study must include:
257.32 	(1) possible locations for the Minnesota National Guard Youth Challenge Program;
258.1 	(2) estimated start-up costs for the program;
258.2 	(3) application and establishment procedures and resources required to apply for 
258.3 	and establish the program; and
258.4 	(4) a survey of similar programs established in other states and how each state comes 
258.5 	up with the state match required to obtain federal funds.

258.6 	ARTICLE 14
258.7 	EXECUTIVE BRANCH COMPENSATION

258.8 	Section 1. Minnesota Statutes 2006, section 15A.081, subdivision 8, is amended to 
258.9 	read:
258.10 		Subd. 8.Expense allowance. Notwithstanding any law to the contrary, positions 
258.11 	listed in section 15A.0815, subdivisions 2 and 3, constitutional officers, the commissioner 
258.12 	of Iron Range resources and rehabilitation, and the director of the State Lottery are 
258.13 	authorized an annual expense allowance not to exceed $1,500 for necessary expenses in 
258.14 	the normal performance of their duties for which no other reimbursement is provided. 
258.15 	The expenditures under this subdivision are subject to any laws and rules relating to 
258.16 	budgeting, allotment and encumbrance, preaudit and postaudit. The commissioner of 
258.17 	finance may adopt rules to assure the proper expenditure of these funds and to provide 
258.18 	for reimbursement. 

258.19 	Sec. 2. Minnesota Statutes 2006, section 15A.0815, is amended to read:
258.20 	15A.0815 SALARY LIMITS FOR CERTAIN EMPLOYEES.
258.21 		Subdivision 1.Salary limits. The governor or other appropriate appointing 
258.22 	authority shall set the salary rates for positions listed in this sectionsubdivision 2 within 
258.23 	the salary limits listed in subdivisions subdivision 2 to 4 and section 43A.17, subdivision 
258.24 	9, subject to approval of the Legislative Coordinating Commission and the legislature as 
258.25 	provided by subdivision 5 and sections 3.855 and 15A.081, subdivision 7b. 
258.26 		Subd. 2.Group I salary limits Positions. The salaries for positions in this 
258.27 	subdivision may not exceed 95 percent of the salary of the governor:
258.28 	Commissioner of administration;
258.29 	Commissioner of agriculture;
258.30 	Commissioner of education;
258.31 	Commissioner of commerce;
258.32 	Commissioner of corrections;
258.33 	Commissioner of employee relations;
258.34 	Commissioner of employment and economic development;
259.1 	Commissioner of finance;
259.2 	Director, Gambling Control Board;
259.3 	Commissioner of health;
259.4 	Executive director, Minnesota Office of Higher Education;
259.5 	Commissioner, Housing Finance Agency;
259.6 	Commissioner of human rights;
259.7 	Commissioner of human services;
259.8 	Commissioner, Iron Range Resources and Rehabilitation Board;
259.9 	Commissioner of labor and industry;
259.10 	Commissioner, Bureau of Mediation Services;
259.11 	Ombudsman for Mental Health and Developmental Disabilities;
259.12 	Chair, Metropolitan Airports Commission;
259.13 	Chair, Metropolitan Council;
259.14 	Director, Minnesota State Lottery;
259.15 	Commissioner of natural resources;
259.16 	Director of Office of Strategic and Long-Range Planning;
259.17 	Commissioner, Pollution Control Agency;
259.18 	Executive director, Public Employees Retirement Association;
259.19 	Commissioner of public safety;
259.20 	Commissioner, Public Utilities Commission;
259.21 	Director, Minnesota Racing Commission;
259.22 	Commissioner of revenue;
259.23 	Commissioner of employment and economic development;
259.24 	Executive director, State Retirement System;
259.25 	Executive director, Teachers Retirement Association;
259.26 	Commissioner of transportation; and
259.27 	Commissioner of veterans affairs.
259.28 		Subd. 3.Group II salary limits. The salaries for positions in this subdivision may 
259.29 	not exceed 85 percent of the salary of the governor:
259.30 	Executive director of Gambling Control Board;
259.31 	Commissioner, Iron Range Resources and Rehabilitation Board;
259.32 	Commissioner, Bureau of Mediation Services;
259.33 	Ombudsman for Mental Health and Developmental Disabilities;
259.34 	Chair, Metropolitan Council;
259.35 	Executive director of pari-mutuel racing;
259.36 	Executive director, Public Employees Retirement Association;
260.1 	Commissioner, Public Utilities Commission;
260.2 	Executive director, State Retirement System; and
260.3 	Executive director, Teachers Retirement Association.
260.4 		Subd. 4.Group III salary limits. The salary for a position in this subdivision may 
260.5 	not exceed 25 percent of the salary of the governor:
260.6 	Chair, Metropolitan Airports Commission.
260.7 		Subd. 5.Appointing authorities to recommend certain salaries. (a) The 
260.8 	governor, or other appropriate appointing authority, may submit to the Legislative 
260.9 	Coordinating Commission recommendations for salaries within the salary limits for the 
260.10 	positions listed in subdivisions 2 to 4. An appointing authority may also propose additions 
260.11 	or deletions of positions from those listed.
260.12 	(b) Before submitting the recommendations, the appointing authority shall consult 
260.13 	with the commissioner of employee relations concerning the recommendations.
260.14 	(c) In making recommendations, the appointing authority shall consider the 
260.15 	criteria established in section 43A.18, subdivision 8, and the performance of individual 
260.16 	incumbents. The performance evaluation must include a review of an incumbent's progress 
260.17 	toward attainment of affirmative action goals. The appointing authority shall establish 
260.18 	an objective system for quantifying knowledge, abilities, duties, responsibilities, and 
260.19 	accountabilities, and in determining recommendations, rate each position by this system. 
260.20 	(d) Before the appointing authority's recommended salaries take effect, the 
260.21 	recommendations must be reviewed and approved, rejected, or modified by the Legislative 
260.22 	Coordinating Commission and the legislature under section 3.855, subdivisions 2 and 
260.23 	3. If, when the legislature is not in session, the commission fails to reject or modify 
260.24 	salary recommendations of the governor within 30 calendar days of their receipt, the 
260.25 	recommendations are deemed to be approved. 
260.26 	(e) The appointing authority shall set the initial salary of a head of a new agency 
260.27 	or a chair of a new metropolitan board or commission whose salary is not specifically 
260.28 	prescribed by law after consultation with the commissioner, whose recommendation is 
260.29 	advisory only. The amount of the new salary must be comparable to the salary of an 
260.30 	agency head or commission chair having similar duties and responsibilities.
260.31 	(f) The salary of a newly appointed head of an agency or chair of a metropolitan 
260.32 	agency listed in subdivisions subdivision 2 to 4, may be increased or decreased by the 
260.33 	appointing authority from the salary previously set for that position within 30 days 
260.34 	of the new appointment after consultation with the commissioner. If the appointing 
260.35 	authority increases a salary under this paragraph, the appointing authority shall submit 
260.36 	the new salary to the Legislative Coordinating Commission and the full legislature 
261.1 	for approval, modification, or rejection under section 3.855, subdivisions 2 and 3. 
261.2 	If, when the legislature is not in session, the commission fails to reject or modify 
261.3 	salary recommendations of the governor within 30 calendar days of their receipt, the 
261.4 	recommendations are deemed to be approved. 

261.5 	Sec. 3. Minnesota Statutes 2006, section 43A.01, subdivision 3, is amended to read:
261.6 		Subd. 3.Equitable compensation relationships. It is the policy of this state to 
261.7 	attempt to establish equitable compensation relationships between female-dominated, 
261.8 	male-dominated, and balanced classes of employees in the executive branch. 
261.9 	Compensation relationships are equitable within the meaning of this subdivision when the 
261.10 	primary consideration in negotiating, establishing, recommending, and approving total 
261.11 	compensation is comparability of the value of the work in relationship to other positions in 
261.12 	the executive branch. A recognized system for classification analysis and its concurrent 
261.13 	point allocation system must be used in order to attain compensation equity. Classification 
261.14 	range maximums must fall within the system's point allocation window. Market-driven 
261.15 	forces are recognized as acceptable in order to maintain employee recruitment and 
261.16 	retention efforts whenever the compensation rates exceed the allocated points. No contract 
261.17 	executed under chapter 179A may modify, waive, or abridge this section and sections 
261.18 	43A.07 to 43A.121, 43A.15, and 43A.17 to 43A.21, except to the extent expressly 
261.19 	permitted in those sections. Any compensation equity adjustments must be made from 
261.20 	agency appropriations. Fifty percent of the compensation governed by this system must be 
261.21 	adjusted in fiscal year 2009 and the remaining compensation in fiscal year 2010.

261.22 	Sec. 4. Minnesota Statutes 2006, section 43A.17, subdivision 9, is amended to read:
261.23 		Subd. 9.Political subdivision Compensation limit. (a) The salary and the value 
261.24 	of all other forms of compensation of the positions in section 15A.0815 and a person 
261.25 	employed by a political subdivision of this state, excluding a school district, or employed 
261.26 	under section 422A.03 may not exceed 110 percent of the salary of the governor as set 
261.27 	under section 15A.082, except as provided in this subdivision. For purposes of this 
261.28 	subdivision, "political subdivision of this state" includes a statutory or home rule charter 
261.29 	city, county, town, metropolitan or regional agency, or other political subdivision, but 
261.30 	does not include a hospital, clinic, or health maintenance organization owned by such a 
261.31 	governmental unit.
261.32 	(b) Beginning in 2006, the limit in paragraph (a) shall be adjusted annually in 
261.33 	January. The limit shall equal the limit for the prior year increased by the percentage 
262.1 	increase, if any, in the Consumer Price Index for all-urban consumers from October of the 
262.2 	second prior year to October of the immediately prior year.
262.3 	(c) Deferred compensation and payroll allocations to purchase an individual annuity 
262.4 	contract for an employee are included in determining the employee's salary. Other forms 
262.5 	of compensation which shall be included to determine an employee's total compensation 
262.6 	are all other direct and indirect items of compensation which are not specifically excluded 
262.7 	by this subdivision. Other forms of compensation which shall not be included in a 
262.8 	determination of an employee's total compensation for the purposes of this subdivision are:
262.9 	(1) employee benefits that are also provided for the majority of all other full-time 
262.10 	employees of the political subdivision, vacation and sick leave allowances, health and 
262.11 	dental insurance, disability insurance, term life insurance, and pension benefits or like 
262.12 	benefits the cost of which is borne by the employee or which is not subject to tax as 
262.13 	income under the Internal Revenue Code of 1986;
262.14 	(2) dues paid to organizations that are of a civic, professional, educational, or 
262.15 	governmental nature; and
262.16 	(3) reimbursement for actual expenses incurred by the employee which the 
262.17 	governing body determines to be directly related to the performance of job responsibilities, 
262.18 	including any relocation expenses paid during the initial year of employment.
262.19 	The value of other forms of compensation shall be the annual cost to the political 
262.20 	subdivision for the provision of the compensation.
262.21 	(d) The salary of a medical doctor or doctor of osteopathy occupying a position that 
262.22 	the governing body of the political subdivision has determined requires an M.D. or D.O. 
262.23 	degree is excluded from the limitation in this subdivision.
262.24 	(e) The commissioner may increase the limitation in this subdivision for a position 
262.25 	that the commissioner has determined requires special expertise necessitating a higher 
262.26 	salary to attract or retain a qualified person. The commissioner shall review each 
262.27 	proposed increase giving due consideration to salary rates paid to other persons with 
262.28 	similar responsibilities in the state and nation. The commissioner may not increase the 
262.29 	limitation until the commissioner has presented the proposed increase to the Legislative 
262.30 	Coordinating Commission and received the commission's recommendation on it. The 
262.31 	recommendation is advisory only. If the commission does not give its recommendation 
262.32 	on a proposed increase within 30 days from its receipt of the proposal, the commission 
262.33 	is deemed to have made no recommendation. If the commissioner grants or granted an 
262.34 	increase under this paragraph, the new limitation shall be adjusted beginning in August 
262.35 	2005 and in each subsequent calendar year in January by the percentage increase equal to 
263.1 	the percentage increase, if any, in the Consumer Price Index for all-urban consumers from 
263.2 	October of the second prior year to October of the immediately prior year.

263.3 	Sec. 5. Minnesota Statutes 2006, section 119A.03, subdivision 1, is amended to read:
263.4 		Subdivision 1.General. The department is under the administrative control of 
263.5 	the commissioner. The commissioner is appointed by the governor with the advice and 
263.6 	consent of the senate. The commissioner must possess broad knowledge and experience 
263.7 	in strengthening children and families. The commissioner has the general powers as 
263.8 	provided in section 15.06, subdivision 6. 
263.9 	The commissioner's salary must be established according to the procedure in section 
263.10 	15A.0815, in the same range as that specified for the commissioner of finance. 

263.11 	Sec. 6. Minnesota Statutes 2006, section 124D.385, subdivision 4, is amended to read:
263.12 		Subd. 4.Delegation to nonprofit. The commission may create a private nonprofit 
263.13 	corporation that is exempt from taxation under section 501(c)(3) of the federal Internal 
263.14 	Revenue Code of 1986. If the commission creates a private nonprofit corporation, the 
263.15 	commission must serve as the corporation's board of directors. The private nonprofit 
263.16 	corporation is not subject to laws governing state agencies or political subdivisions, 
263.17 	except the provisions of chapter 13, the Open Meeting Law under chapter 13D, salary 
263.18 	limits under section 15A.0815, subdivision 2, and audits by the legislative auditor under 
263.19 	chapter 3 apply. Further provided that the board of directors and the executive director 
263.20 	of the nonprofit corporation are each considered an "official" for purposes of section 
263.21 	10A.071. The commission may delegate any or all of its powers and duties under federal 
263.22 	law or under sections 124D.37 to 124D.45 to the corporation if the nonprofit corporation 
263.23 	is approved under federal law to administer the National and Community Service Trust 
263.24 	Act. The commission may revoke a delegation of powers and duties at any time, and must 
263.25 	revoke the delegation if the corporation is no longer approved under federal law as the 
263.26 	administrator in the state of Minnesota for the National and Community Service Trust Act. 

263.27 	Sec. 7. Minnesota Statutes 2007 Supplement, section 216C.052, subdivision 2, is 
263.28 	amended to read:
263.29 		Subd. 2.Administrative issues. (a) The commissioner may select the administrator. 
263.30 	The administrator must have at least five years of experience working as a power systems 
263.31 	engineer or transmission planner, or in a position dealing with power system reliability 
263.32 	issues, and may not have been a party or a participant in a commission energy proceeding 
263.33 	for at least one year prior to selection by the commissioner. The commissioner shall 
264.1 	oversee and direct the work of the administrator, annually review the expenses of the 
264.2 	administrator, and annually approve the budget of the administrator. The administrator 
264.3 	may hire staff and may contract for technical expertise in performing duties when existing 
264.4 	state resources are required for other state responsibilities or when special expertise is 
264.5 	required. The salary of the administrator is governed by section 15A.0815, subdivision 2.
264.6 	(b) Costs relating to a specific proceeding, analysis, or project are not general 
264.7 	administrative costs. For purposes of this section, "energy utility" means public utilities, 
264.8 	generation and transmission cooperative electric associations, and municipal power 
264.9 	agencies providing natural gas or electric service in the state.
264.10 	(c) The Department of Commerce shall pay:
264.11 	(1) the general administrative costs of the administrator, not to exceed $1,000,000 
264.12 	in a fiscal year, and shall assess energy utilities for those administrative costs. These 
264.13 	costs must be consistent with the budget approved by the commissioner under paragraph 
264.14 	(a). The department shall apportion the costs among all energy utilities in proportion to 
264.15 	their respective gross operating revenues from sales of gas or electric service within 
264.16 	the state during the last calendar year, and shall then render a bill to each utility on a 
264.17 	regular basis; and
264.18 	(2) costs relating to a specific proceeding analysis or project and shall render a bill to 
264.19 	the specific energy utility or utilities participating in the proceeding, analysis, or project 
264.20 	directly, either at the conclusion of a particular proceeding, analysis, or project, or from 
264.21 	time to time during the course of the proceeding, analysis, or project.
264.22 	(d) For purposes of administrative efficiency, the department shall assess energy 
264.23 	utilities and issue bills in accordance with the billing and assessment procedures provided 
264.24 	in section 216B.62, to the extent that these procedures do not conflict with this subdivision. 
264.25 	The amount of the bills rendered by the department under paragraph (c) must be paid by 
264.26 	the energy utility into an account in the special revenue fund in the state treasury within 
264.27 	30 days from the date of billing and is appropriated to the department for the purposes 
264.28 	provided in this section. The commission shall approve or approve as modified a rate 
264.29 	schedule providing for the automatic adjustment of charges to recover amounts paid by 
264.30 	utilities under this section. All amounts assessed under this section are in addition to 
264.31 	amounts appropriated to the commission and the department by other law.

264.32 	Sec. 8. Minnesota Statutes 2006, section 349A.02, subdivision 1, is amended to read:
264.33 		Subdivision 1.Director. A State Lottery is established under the supervision and 
264.34 	control of a director. The director of the State Lottery shall be appointed by the governor 
264.35 	with the advice and consent of the senate. The director serves in the unclassified service at 
265.1 	the pleasure of the governor. The annual salary rate authorized for the director is equal to 
265.2 	95 percent of the salary rate prescribed for the governor.

265.3 	ARTICLE 15
265.4 	MINNESOTA HERITAGE

265.5	Section 1.  SUMMARY OF HERITAGE FINANCE APPROPRIATIONS.
 	
265.6 	The amounts shown in this section summarize direct appropriations or reductions, 
265.7 	by fund made in this article.

265.8			2008
		2009
		Total
	
265.9	General
	$
	-0-
	$
	750,000
	$
	750,000

265.10	Sec. 2. HERITAGE FINANCE APPROPRIATIONS AND REDUCTIONS.
 	
265.11 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
265.12 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 135, or other law 
265.13 	to the specified agencies and for the purposes specified in this article. The appropriations 
265.14 	are from the general fund, or another named fund and are available for the fiscal years 
265.15 	indicated for each purpose. The figures "2008" and "2009" used in this article mean that 
265.16 	the appropriations listed under them are available for the fiscal year ending June 30, 2008, 
265.17 	or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is 
265.18 	fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the 
265.19 	fiscal year ending June 30, 2008, are effective the day following final enactment.

265.20				APPROPRIATIONS
	
265.21				Available for the Year
	
265.22				Ending June 30
	
265.23					2008
		2009

265.24	Sec. 3. EXPLORE MINNESOTA TOURISM
 	$
	-0-
	$
	-0-
	
265.25 	Of the unexpended balance in the special 
265.26 	marketing account established pursuant to 
265.27 	Laws 2005, First Special Session chapter 1, 
265.28 	article 3, section 6, $500,000 is appropriated 
265.29 	for a onetime grant to the Minnesota Film 
265.30 	and TV Board for the filming of a movie in 
265.31 	Minnesota in 2008 and 2009. The grant is 
265.32 	in addition to any payments made for the 
265.33 	same purpose from the film production jobs 
266.1 	program under Minnesota Statutes, section 
266.2 	116U.26. This appropriation is available 
266.3 	until expended.

266.4
266.5	Sec. 4. MINNESOTA HISTORICAL 
SOCIETY
 	$
	-0-
	$
	750,000
	
266.6 	$750,000 in the second year is a 
266.7 	onetime appropriation for the Minnesota 
266.8 	Sesquicentennial Commission. The 
266.9 	Minnesota Historical Society, the State Arts 
266.10 	Board, and Explore Minnesota Tourism 
266.11 	may assist the commission in designing 
266.12 	and implementing the grants program. 
266.13 	The commission shall encourage private 
266.14 	contributions to match the state funds to the 
266.15 	greatest extent possible. Any gifts, pledges, 
266.16 	membership fees, or contributions received 
266.17 	by the commission are appropriated to the 
266.18 	commission. The commission is encouraged 
266.19 	to solicit and select a state song for the state 
266.20 	of Minnesota.

266.21 	Sec. 5. Minnesota Statutes 2007 Supplement, section 3.922, is amended by adding a 
266.22 	subdivision to read:
266.23 		Subd. 4a.Meetings by electronic means. (a) Notwithstanding section 13D.01, the 
266.24 	Indian Affairs Council may conduct a meeting of its members by telephone or other 
266.25 	electronic means so long as the following conditions are met:
266.26 	(1) all members of the council participating in the meeting, wherever their physical 
266.27 	location, can hear one another and can hear all discussion and testimony;
266.28 	(2) members of the public present at the regular meeting location of the council can 
266.29 	hear all discussion and all votes of members of the council and participate in testimony;
266.30 	(3) at least one member of the council is physically present at the regular meeting 
266.31 	location; and
266.32 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
266.33 	identified and recorded.
267.1 	(b) Each member of the council participating in a meeting by telephone or other 
267.2 	electronic means is considered present at the meeting for purposes of determining a 
267.3 	quorum and participating in all proceedings.
267.4 	(c) If telephone or another electronic means is used to conduct a meeting, the council, 
267.5 	to the extent practical, shall allow a person to monitor the meeting electronically from a 
267.6 	remote location. The council may require the person making such a connection to pay for 
267.7 	documented marginal costs that the council incurs as a result of the additional connection.
267.8 	(d) If telephone or another electronic means is used to conduct a regular, special, or 
267.9 	emergency meeting, the council shall provide notice of the regular meeting location, of 
267.10 	the fact that some members may participate by electronic means, and of the provisions of 
267.11 	paragraph (c). The timing and method of providing notice is governed by section 13D.04.

267.12 	Sec. 6. Minnesota Statutes 2007 Supplement, section 10A.01, subdivision 35, is 
267.13 	amended to read:
267.14 		Subd. 35.Public official. "Public official" means any:
267.15 	(1) member of the legislature;
267.16 	(2) individual employed by the legislature as secretary of the senate, legislative 
267.17 	auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or 
267.18 	attorney in the Office of Senate Counsel and Research or House Research;
267.19 	(3) constitutional officer in the executive branch and the officer's chief administrative 
267.20 	deputy;
267.21 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
267.22 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
267.23 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
267.24 	officer;
267.25 	(6) member, chief administrative officer, or deputy chief administrative officer of a 
267.26 	state board or commission that has either the power to adopt, amend, or repeal rules under 
267.27 	chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
267.28 	(7) individual employed in the executive branch who is authorized to adopt, amend, 
267.29 	or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
267.30 	(8) executive director of the State Board of Investment;
267.31 	(9) deputy of any official listed in clauses (7) and (8);
267.32 	(10) judge of the Workers' Compensation Court of Appeals;
267.33 	(11) administrative law judge or compensation judge in the State Office of 
267.34 	Administrative Hearings or referee in the Department of Employment and Economic 
267.35 	Development;
268.1 	(12) member, regional administrator, division director, general counsel, or operations 
268.2 	manager of the Metropolitan Council;
268.3 	(13) member or chief administrator of a metropolitan agency;
268.4 	(14) director of the Division of Alcohol and Gambling Enforcement in the 
268.5 	Department of Public Safety;
268.6 	(15) member or executive director of the Higher Education Facilities Authority;
268.7 	(16) member of the board of directors or president of Minnesota Technology, Inc.;
268.8 	(17) member of the board of directors or executive director of the Minnesota State 
268.9 	High School League;
268.10 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
268.11 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
268.12 	(20) manager of a watershed district, or member of a watershed management 
268.13 	organization as defined under section 103B.205, subdivision 13; or
268.14 	(21) supervisor of a soil and water conservation district; or
268.15 	(22) director of Explore Minnesota Tourism.

268.16 	Sec. 7. Minnesota Statutes 2006, section 116U.26, is amended to read:
268.17 	116U.26 FILM JOBS PRODUCTION PROGRAM.
268.18 	(a) The film production jobs program is created. The program shall be operated 
268.19 	by the Minnesota Film and TV Board with administrative oversight and control by the 
268.20 	director of Explore Minnesota Tourism. The program shall make payment to producers of 
268.21 	feature films, national television programs, documentaries, music videos, and commercials 
268.22 	that directly create new film jobs in Minnesota. To be eligible for a payment, a producer 
268.23 	must submit documentation to the Minnesota Film and TV Board of expenditures for 
268.24 	production costs incurred in Minnesota that are directly attributable to the production 
268.25 	in Minnesota of a film product. 
268.26 	The Minnesota Film and TV Board shall make recommendations to the director of 
268.27 	Explore Minnesota Tourism about program payment, but the director has the authority to 
268.28 	make the final determination on payments. The director's determination must be based 
268.29 	on proper documentation of eligible production costs submitted for payments. No more 
268.30 	than five percent of the funds appropriated for the program in any year may be expended 
268.31 	for administration. 
268.32 	(b) For the purposes of this section:
268.33 	(1) "production costs" means the cost of the following:
268.34 	(i) a story and scenario to be used for a film;
269.1 	(ii) salaries of talent, management, and labor, including payments to personal 
269.2 	services corporations for the services of a performing artist;
269.3 	(iii) set construction and operations, wardrobe, accessories, and related services;
269.4 	(iv) photography, sound synchronization, lighting, and related services;
269.5 	(v) editing and related services;
269.6 	(vi) rental of facilities and equipment; or
269.7 	(vii) other direct costs of producing the film in accordance with generally accepted 
269.8 	entertainment industry practice; and
269.9 	(2) "film" means a movie, television show, documentary, music video, or television 
269.10 	commercial, whether on film or video. Film does not include news, current events, public 
269.11 	programming, or a program that includes weather or market reports; a talk show; a 
269.12 	production with respect to a questionnaire or contest; a sports event or sports activity; a 
269.13 	gala presentation or awards show; a finished production that solicits funds; or a production 
269.14 	for which the production company is required under United States Code, title 18, section 
269.15 	2257, to maintain records with respect to a performer portrayed in a single-media or 
269.16 	multimedia program.
269.17 	(c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board 
269.18 	may make reimbursements of up to 20 percent of film production costs for films that incur 
269.19 	production costs in excess of $5,000,000 in Minnesota within a 12-month period.

269.20 	EFFECTIVE DATE. This section is effective for films that begin filming on or 
269.21 	after the day following final enactment.

269.22 	Sec. 8. MINNESOTA VACATION RENTAL LODGING STUDY.
 269.23 	Explore Minnesota Tourism shall conduct a study of vacation rental lodging in 
269.24 	Minnesota and report to the legislature any recommendations needed to protect consumers, 
269.25 	ensure tax compliance, promote safe rentals, and promote tourism in Minnesota.
269.26 	Explore Minnesota Tourism shall consult with the Minnesota Department of 
269.27 	Revenue, Minnesota Department of Health, political subdivisions, and representatives of 
269.28 	the tourism industry including resorts, bed and breakfast establishments, cabin owner 
269.29 	associations, convention and visitor bureaus, and others to determine and recommend 
269.30 	regulations or legislation to define and promote the vacation rental lodging.
269.31 	Explore Minnesota Tourism shall report by January 15, 2009, to the chairs 
269.32 	of the house of representatives and senate committees with jurisdiction over any 
269.33 	recommendations developed from the study, including any proposed legislation.

269.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

270.1 	ARTICLE 16
270.2 	HOUSING

270.3 	Section 1. Minnesota Statutes 2006, section 462A.22, subdivision 1, is amended to 
270.4 	read:
270.5 		Subdivision 1.Debt ceiling. The aggregate principal amount of bonds and notes 
270.6 	which are outstanding at any time, excluding the principal amount of any bonds and 
270.7 	notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
270.8 	$3,000,000,000 $5,000,000,000.

270.9 	ARTICLE 17
270.10 	PUBLIC HEALTH

270.11	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
270.12 	The amounts shown in this section summarize direct appropriations by fund made 
270.13 	in this article.

270.14			2008
		2009
		Total
	
270.15	General
	$
		$
	(1,650,000)
	$
	(1,650,000)
	
270.16	State Government Special
							
270.17	Revenue
		114,000
		833,000
		947,000
	
270.18	Total
	$
	114,000
	$
	(817,000)
	$
	(703,000)

270.19	Sec. 2. HEALTH APPROPRIATION.
 	
270.20 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
270.21 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 147, or other 
270.22 	law to the agencies and for the purposes specified in this article. The appropriations 
270.23 	are from the general fund, or another named fund, and are available for the fiscal years 
270.24 	indicated for each purpose. The figures "2008" and "2009" used in this article mean 
270.25 	that the addition or subtraction from appropriations listed under them are available for 
270.26 	the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is 
270.27 	fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 
270.28 	2008 and 2009. Supplemental appropriations and reductions for the fiscal year ending 
270.29 	June 30, 2008, are effective the day following final enactment.

270.30				APPROPRIATIONS
	
270.31				Available for the Year
	
270.32				Ending June 30
	
270.33					2008
		2009

271.1	Sec. 3. COMMISSIONER OF HEALTH

271.2	Subdivision 1.Total Appropriation
 	$
		$
	(1,017,000)

271.3	Appropriations by Fund
	
271.4		2008
	2009
	
271.5	General
		(1,650,000)
	
271.6
271.7	State Government 
Special Revenue
		633,000

271.8	Subd. 2.Health Protection
 				633,000
	
271.9 	Base Adjustment. The state government 
271.10 	special revenue fund base is increased 
271.11 	$633,000 in fiscal year 2009 and $722,000 in 
271.12 	fiscal years 2010 and 2011.

271.13	Subd. 3.Administrative Support Services
 				(1,650,000)
	
271.14 	Base Adjustment. The general fund base is 
271.15 	reduced $1,650,000 in fiscal year 2009 and 
271.16 	$1,581,000 in fiscal years 2010 and 2011.
271.17 	Operating Budget. The Department of 
271.18 	Health must implement this reduction in 
271.19 	a manner that does not result in the loss 
271.20 	of federal funds. All budget reductions 
271.21 	must be made with an emphasis on cutting 
271.22 	administrative and overhead expenses, 
271.23 	including, but not limited to, outstate travel, 
271.24 	instate travel, compensation, and supplies 
271.25 	with as little impact as possible on programs 
271.26 	and services.

271.27	Sec. 4. HEALTH-RELATED BOARDS.

271.28	Subdivision 1.Total Appropriation 
 					
271.29
271.30	State Government Special 
Revenue
			$
	114,000
	$
	200,000

271.31
271.32	Subd. 2.Board of Nursing Home 
Administrators

271.33	State Government Special Revenue
		100,000
		200,000
	
272.1 	Administrative Services Unit. The amounts 
272.2 	appropriated are for the administrative 
272.3 	services unit to pay for costs of contested 
272.4 	case hearings and other unanticipated costs 
272.5 	of legal proceedings involving health-related 
272.6 	boards funded under Laws 2007, chapter 
272.7 	147, article 19, section 6. Upon certification 
272.8 	of a health-related board to the administrative 
272.9 	services unit that such costs will be 
272.10 	incurred and that there are insufficient 
272.11 	funds available to pay for such costs out of 
272.12 	funds currently available to that board, the 
272.13 	administrative services unit is authorized 
272.14 	to transfer funds from this appropriation 
272.15 	to the board for payment of those costs 
272.16 	with the approval of the commissioner of 
272.17 	finance. This appropriation shall not cancel. 
272.18 	Any unencumbered and unspent balances 
272.19 	remain available for these expenditures in 
272.20 	subsequent fiscal years.

272.21
272.22	Subd. 3.Board of Marriage and Family 
Therapy

272.23	State Government Special Revenue
		14,000

272.24 	Sec. 5. Minnesota Statutes 2006, section 144.1222, subdivision 1a, is amended to read:
272.25 		Subd. 1a.Fees. All plans and specifications for public swimming pool and spa 
272.26 	construction, installation, or alteration or requests for a variance that are submitted to the 
272.27 	commissioner according to Minnesota Rules, part 4717.3975, shall be accompanied by the 
272.28 	appropriate fees. All public pool construction plans submitted for review after January 1, 
272.29 	2009, must be certified by a professional engineer registered in the state of Minnesota.
272.30 	If the commissioner determines, upon review of the plans, that inadequate fees were 
272.31 	paid, the necessary additional fees shall be paid before plan approval. For purposes of 
272.32 	determining fees, a project is defined as a proposal to construct or install a public pool, 
272.33 	spa, special purpose pool, or wading pool and all associated water treatment equipment 
272.34 	and drains, gutters, decks, water recreation features, spray pads, and those design and 
272.35 	safety features that are within five feet of any pool or spa. The commissioner shall charge 
273.1 	the following fees for plan review and inspection of public pools and spas and for requests 
273.2 	for variance from the public pool and spa rules:
273.3 	(1) each spa pool, $500 $800;
273.4 	(2) projects valued at $250,000 or less, a minimum of $800 per pool plus: each 
273.5 	spa pool, $500;
273.6 	(i) (3)for each slide, an additional $400; and
273.7 	(ii) for each spa pool, an additional $500;
273.8 	(3) (4) projects valued at $250,000 or more, the greater of the sum of the fees in 
273.9 	clauses (1), (2), and (3) or 0.5 percent of the documented estimated project cost to a 
273.10 	maximum fee of $10,000;
273.11 	(4) (5) alterations to an existing pool without changing the size or configuration 
273.12 	of the pool, $400;
273.13 	(5) (6) removal or replacement of pool disinfection equipment only, $75; and
273.14 	(6) (7) request for variance from the public pool and spa rules, $500.

273.15 	Sec. 6. Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision 
273.16 	to read:
273.17 		Subd. 1b.Public pool construction. For all public pools constructed after January 
273.18 	1, 2009, without a gravity outlet or drain, each pump must be connected to at least two 
273.19 	suction outlets, connected in parallel with suction outlet covers that meet ASME/ANSI 
273.20 	standards.

273.21 	Sec. 7. Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision 
273.22 	to read:
273.23 		Subd. 1c.Public pools; required equipment. (a) Beginning January 1, 2010, all 
273.24 	public pools with the deepest water being less than four feet deep must have either: 
273.25 	(1) an unblockable suction outlet or drain;
273.26 	(2) at least two suction outlets, connected in parallel with suction outlet covers that 
273.27 	meet ASME/ANSI standards; or
273.28 	(3) a gravity outlet or drain.
273.29 	(b) Beginning January 1, 2011, all other existing public pools must have either: 
273.30 	(1) an unblockable suction outlet or drain;
273.31 	(2) at least two suction outlets, connected in parallel with suction outlet covers that 
273.32 	meet ASME/ANSI standards; or
273.33 	(3) a gravity outlet or drain.
274.1 	(c) By June 1, 2008, all drain covers and grates must be installed with screws that 
274.2 	meet the manufacturer's specifications.
274.3 	(d) By July 1, 2008, and annually thereafter, all public pool owners must certify to 
274.4 	the commissioner on a form prescribed by the commissioner that:
274.5 	(1) all outlets except for unblockable drains and gravity drains are equipped with 
274.6 	covers that have been stamped by the manufacturer that they are in compliance with 
274.7 	ASME/ANSI standards; and
274.8 	(2) all covers and grates, including mounting rings, have been inspected to ensure 
274.9 	that they have been properly installed and are not broken or loose.

274.10 	Sec. 8. Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision 
274.11 	to read:
274.12 		Subd. 1d.Safety inspections. (a) The pool operator is required to conduct a 
274.13 	physical inspection of the drain covers and grates on a daily basis. The record required 
274.14 	under Minnesota Rules, part 4717.0750, must indicate that this inspection was completed 
274.15 	every day the pool is open for use.
274.16 	(b) If at any time an outlet cover or grate is missing, broken, or loose, the pool must 
274.17 	be closed immediately. The pool may not open until the missing or broken cover or grate 
274.18 	has been replaced according to the manufacturer's specifications, or the loose cover or 
274.19 	grate has been reattached according to the manufacturer's specifications.

274.20 	Sec. 9. Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision 
274.21 	to read:
274.22 		Subd. 4.Definitions. (a) For purposes of this section, the following terms have 
274.23 	the meanings given them.
274.24 	(b) "ASME/ANSI standard" means a safety standard accredited by the American 
274.25 	National Standards Institute and published by the American Society of Mechanical 
274.26 	Engineers.
274.27 	(c) "ASTM standard" means a safety standard issued by ASTM International, 
274.28 	formerly known as the American Society for Testing and Materials.
274.29 	(d) "Public pool" means any pool other than a private residential pool, that is open to 
274.30 	the public generally, whether for a fee or free of charge; open exclusively to members of 
274.31 	an organization and their guests; residents of a multiunit apartment building, apartment 
274.32 	complex, residential real estate development, or other multifamily residential area; or 
274.33 	patrons of a hotel or lodging or other public accommodation facility; or operated by 
274.34 	a person in a park, school, licensed child care facility, group home, motel, camp, resort, 
275.1 	club, condominium, manufactured home park, or political subdivision with the exception 
275.2 	of swimming pools at family day care homes licensed under section 245A.14, subdivision 
275.3 	11, paragraph (a).
275.4 	(e) "Unblockable suction outlet or drain" means a drain of any size and shape that a 
275.5 	human body cannot sufficiently block to create a suction entrapment hazard and meets 
275.6 	ASME/ANSI standards.

275.7 	Sec. 10. Minnesota Statutes 2006, section 144.1222, is amended by adding a 
275.8 	subdivision to read:
275.9 		Subd. 5.Swimming pond exemption. (a) A public swimming pond in existence 
275.10 	before January 1, 2008, as defined in paragraph (b) is not a public pool for purposes of this 
275.11 	section and section 157.16, and is exempt from the requirements for public swimming 
275.12 	pools under Minnesota Rules, part 4717.
275.13 	(b)  For purposes of this subdivision, a public swimming pond means an artificial 
275.14 	body of water contained within a lined, sand-bottom basin, meant for public swimming, 
275.15 	relaxation, or recreational use that includes a water recirculation system for maintaining 
275.16 	water quality and does not include any portion of a naturally occurring lake or stream.
275.17 	(c) Notwithstanding paragraph (a), a public swimming pond must meet the 
275.18 	requirements for public pools described in subdivisions 1d and 1e.
275.19 	(d) This subdivision expires June 30, 2011.

275.20 	Sec. 11. Minnesota Statutes 2006, section 157.16, as amended by Laws 2007, chapter 
275.21 	147, article 9, section 34, is amended to read:
275.22 	157.16 LICENSES REQUIRED; FEES.
275.23 		Subdivision 1.License required annually. A license is required annually for 
275.24 	every person, firm, or corporation engaged in the business of conducting a food and 
275.25 	beverage service establishment, hotel, motel, lodging establishment, public pool, or 
275.26 	resort. Any person wishing to operate a place of business licensed in this section shall 
275.27 	first make application, pay the required fee specified in this section, and receive approval 
275.28 	for operation, including plan review approval. Seasonal and temporary food stands and 
275.29 	special event food stands are not required to submit plans. Nonprofit organizations 
275.30 	operating a special event food stand with multiple locations at an annual one-day event 
275.31 	shall be issued only one license. Application shall be made on forms provided by the 
275.32 	commissioner and shall require the applicant to state the full name and address of the 
275.33 	owner of the building, structure, or enclosure, the lessee and manager of the food and 
275.34 	beverage service establishment, hotel, motel, lodging establishment, public pool, or resort; 
276.1 	the name under which the business is to be conducted; and any other information as may 
276.2 	be required by the commissioner to complete the application for license.
276.3 		Subd. 2.License renewal. Initial and renewal licenses for all food and beverage 
276.4 	service establishments, hotels, motels, lodging establishments, public pools, and resorts 
276.5 	shall be issued for the calendar year for which application is made and shall expire 
276.6 	on December 31 of such year. Any person who operates a place of business after the 
276.7 	expiration date of a license or without having submitted an application and paid the fee 
276.8 	shall be deemed to have violated the provisions of this chapter and shall be subject to 
276.9 	enforcement action, as provided in the Health Enforcement Consolidation Act, sections 
276.10 	144.989 to 144.993. In addition, a penalty of $50 shall be added to the total of the license 
276.11 	fee for any food and beverage service establishment operating without a license as a 
276.12 	mobile food unit, a seasonal temporary or seasonal permanent food stand, or a special 
276.13 	event food stand, and a penalty of $100 shall be added to the total of the license fee for all 
276.14 	restaurants, food carts, hotels, motels, lodging establishments, public pools, and resorts 
276.15 	operating without a license for a period of up to 30 days. A late fee of $300 shall be added 
276.16 	to the license fee for establishments operating more than 30 days without a license.
276.17 		Subd. 2a.Food manager certification. An applicant for certification or certification 
276.18 	renewal as a food manager must submit to the commissioner a $28 nonrefundable 
276.19 	certification fee payable to the Department of Health.
276.20 		Subd. 3.Establishment fees; definitions. (a) The following fees are required for 
276.21 	food and beverage service establishments, hotels, motels, lodging establishments, public 
276.22 	pools, and resorts licensed under this chapter. Food and beverage service establishments 
276.23 	must pay the highest applicable fee under paragraph (d), clause (1), (2), (3), or (4), and 
276.24 	establishments serving alcohol must pay the highest applicable fee under paragraph (d), 
276.25 	clause (6) or (7). The license fee for new operators previously licensed under this chapter 
276.26 	for the same calendar year is one-half of the appropriate annual license fee, plus any 
276.27 	penalty that may be required. The license fee for operators opening on or after October 1 
276.28 	is one-half of the appropriate annual license fee, plus any penalty that may be required.
276.29 	(b) All food and beverage service establishments, except special event food stands, 
276.30 	and all hotels, motels, lodging establishments, public pools, and resorts shall pay an 
276.31 	annual base fee of $150.
276.32 	(c) A special event food stand shall pay a flat fee of $40 annually. "Special event 
276.33 	food stand" means a fee category where food is prepared or served in conjunction with 
276.34 	celebrations, county fairs, or special events from a special event food stand as defined 
276.35 	in section 157.15.
277.1 	(d) In addition to the base fee in paragraph (b), each food and beverage service 
277.2 	establishment, other than a special event food stand, and each hotel, motel, lodging 
277.3 	establishment, public pool, and resort shall pay an additional annual fee for each fee 
277.4 	category, additional food service, or required additional inspection specified in this 
277.5 	paragraph:
277.6 	(1) Limited food menu selection, $50. "Limited food menu selection" means a fee 
277.7 	category that provides one or more of the following:
277.8 	(i) prepackaged food that receives heat treatment and is served in the package;
277.9 	(ii) frozen pizza that is heated and served;
277.10 	(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;
277.11 	(iv) soft drinks, coffee, or nonalcoholic beverages; or
277.12 	(v) cleaning for eating, drinking, or cooking utensils, when the only food served 
277.13 	is prepared off site.
277.14 	(2) Small establishment, including boarding establishments, $100. "Small 
277.15 	establishment" means a fee category that has no salad bar and meets one or more of 
277.16 	the following:
277.17 	(i) possesses food service equipment that consists of no more than a deep fat fryer, a 
277.18 	grill, two hot holding containers, and one or more microwave ovens;
277.19 	(ii) serves dipped ice cream or soft serve frozen desserts;
277.20 	(iii) serves breakfast in an owner-occupied bed and breakfast establishment;
277.21 	(iv) is a boarding establishment; or
277.22 	(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum 
277.23 	patron seating capacity of not more than 50.
277.24 	(3) Medium establishment, $260. "Medium establishment" means a fee category 
277.25 	that meets one or more of the following:
277.26 	(i) possesses food service equipment that includes a range, oven, steam table, salad 
277.27 	bar, or salad preparation area;
277.28 	(ii) possesses food service equipment that includes more than one deep fat fryer, 
277.29 	one grill, or two hot holding containers; or
277.30 	(iii) is an establishment where food is prepared at one location and served at one or 
277.31 	more separate locations.
277.32 	Establishments meeting criteria in clause (2), item (v), are not included in this fee 
277.33 	category.
277.34 	(4) Large establishment, $460. "Large establishment" means either:
278.1 	(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a 
278.2 	medium establishment, (B) seats more than 175 people, and (C) offers the full menu 
278.3 	selection an average of five or more days a week during the weeks of operation; or
278.4 	(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium 
278.5 	establishment, and (B) prepares and serves 500 or more meals per day.
278.6 	(5) Other food and beverage service, including food carts, mobile food units, 
278.7 	seasonal temporary food stands, and seasonal permanent food stands, $50.
278.8 	(6) Beer or wine table service, $50. "Beer or wine table service" means a fee 
278.9 	category where the only alcoholic beverage service is beer or wine, served to customers 
278.10 	seated at tables.
278.11 	(7) Alcoholic beverage service, other than beer or wine table service, $135.
278.12 	"Alcohol beverage service, other than beer or wine table service" means a fee 
278.13 	category where alcoholic mixed drinks are served or where beer or wine are served from 
278.14 	a bar.
278.15 	(8) Lodging per sleeping accommodation unit, $8, including hotels, motels, 
278.16 	lodging establishments, and resorts, up to a maximum of $800. "Lodging per sleeping 
278.17 	accommodation unit" means a fee category including the number of guest rooms, cottages, 
278.18 	or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 
278.19 	beds in a dormitory.
278.20 	(9) First public swimming pool, $180; each additional public swimming pool, $100. 
278.21 	"Public swimming pool" means a fee category that has the meaning given in Minnesota 
278.22 	Rules, part 4717.0250, subpart 8 section 144.1222, subdivision 4.
278.23 	(10) First spa, $110; each additional spa, $50. "Spa pool" means a fee category that 
278.24 	has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.
278.25 	(11) Private sewer or water, $50. "Individual private water" means a fee category 
278.26 	with a water supply other than a community public water supply as defined in Minnesota 
278.27 	Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 
278.28 	sewage treatment system which uses subsurface treatment and disposal.
278.29 	(12) Additional food service, $130. "Additional food service" means a location at 
278.30 	a food service establishment, other than the primary food preparation and service area, 
278.31 	used to prepare or serve food to the public.
278.32 	(13) Additional inspection fee, $300. "Additional inspection fee" means a fee to 
278.33 	conduct the second inspection each year for elementary and secondary education facility 
278.34 	school lunch programs when required by the Richard B. Russell National School Lunch 
278.35 	Act.
279.1 	(e) A fee of $350 for review of the construction plans must accompany the initial 
279.2 	license application for restaurants, hotels, motels, lodging establishments, or resorts with 
279.3 	five or more sleeping units.
279.4 	(f) When existing food and beverage service establishments, hotels, motels, lodging 
279.5 	establishments, or resorts are extensively remodeled, a fee of $250 must be submitted 
279.6 	with the remodeling plans. A fee of $250 must be submitted for new construction or 
279.7 	remodeling for a restaurant with a limited food menu selection, a seasonal permanent 
279.8 	food stand, a mobile food unit, or a food cart, or for a hotel, motel, resort, or lodging 
279.9 	establishment addition of less than five sleeping units.
279.10 	(g) Seasonal temporary food stands and special event food stands are not required to 
279.11 	submit construction or remodeling plans for review.
279.12 		Subd. 3a.Statewide hospitality fee. Every person, firm, or corporation that 
279.13 	operates a licensed boarding establishment, food and beverage service establishment, 
279.14 	seasonal temporary or permanent food stand, special event food stand, mobile food unit, 
279.15 	food cart, resort, hotel, motel, or lodging establishment in Minnesota must submit to the 
279.16 	commissioner a $35 annual statewide hospitality fee for each licensed activity. The fee 
279.17 	for establishments licensed by the Department of Health is required at the same time the 
279.18 	licensure fee is due. For establishments licensed by local governments, the fee is due by 
279.19 	July 1 of each year.
279.20 		Subd. 4.Posting requirements. Every food and beverage service establishment, 
279.21 	hotel, motel, lodging establishment, public pool, or resort must have the license posted in 
279.22 	a conspicuous place at the establishment.

279.23 	Sec. 12. [325F.172] DEFINITIONS.
279.24 	For the purposes of sections 325F.172 to 325F.175, the following terms have the 
279.25 	meanings given them.
279.26 	(a) "BBP" means benzyl butyl phthalate, CAS # 85-68-7.
279.27 	(b) "Child" means a person under three years of age.
279.28 	(c) "Children's product" means a product, other than a food or beverage product 
279.29 	contained in a can, except in those used for infant formulas, designed or intended by a 
279.30 	manufacturer to be used by a child:
279.31 	(1) as a toy or an article of clothing;
279.32 	(2) to facilitate sleep, relaxation, or feeding; or
279.33 	(3) to be rubbed, poured, sprinkled, sprayed on, introduced into, or otherwise 
279.34 	applied to the human body or any part thereof, including any article used as a component 
279.35 	of such a product.
280.1 	(d) "DBP" means di-n-butyl phthalate, CAS # 84-74-2.
280.2 	(e) "DEHP" means di (2-ethylhexyl) phthalate, CAS # 117-81-7.
280.3 	(f) "DIDP" means di-isodecyl phthalate, CAS # 26761-40-0.
280.4 	(g) "DINP" means di-iso-nonyl phthalate, CAS # 71549-78-5.
280.5 	(h) "DNOP" means di-n-octyl phthalate, CAS # 117-84-6.

280.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

280.7 	Sec. 13. [325F.173] BISPHENOL-A IN CHILDREN'S PRODUCTS; BAN.
280.8 	Beginning January 1, 2009, no manufacturer may sell or offer for initial sale at retail 
280.9 	in this state a children's product that contains bisphenol-A. For purposes of this section, 
280.10 	"bisphenol-A" means an estrogen-mimicking endocrine disrupting chemical used in the 
280.11 	production of epoxy resins and polycarbonate plastics.

280.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

280.13 	Sec. 14. [325F.174] PHTHALATES IN CHILDREN'S PRODUCTS; BAN.
280.14 	(a) Beginning January 1, 2009, no manufacturer may sell or offer for initial sale at 
280.15 	retail in this state a children's product that contains one of the following phthalates: DEHP, 
280.16 	DBP, or BBP, in concentrations exceeding 0.1 percent, including plastic tubing used to 
280.17 	deliver a solution intravenously to a child under three years of age.
280.18 	(b) Beginning January 1, 2009, no manufacturer may sell or offer for initial sale at 
280.19 	retail in this state any children's product that can be placed in a child's mouth and contains 
280.20 	one of the following phthalates: DINP, DIDP, or DNOP, in concentrations exceeding 
280.21 	0.1 percent.
280.22 	(c) For purposes of this section, "phthalates" means a class of chemicals used to 
280.23 	provide flexibility to polyvinyl chloride (PVC) plastic. 

280.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

280.25 	Sec. 15. [325F.175] REPLACEMENT CHEMICALS.
280.26 	A manufacturer shall not replace bisphenol-A or phthalates as a result of the 
280.27 	prohibitions in section 325F.173 or 325F.174 with a chemical that is:
280.28 	(1) classified as "known to be a human carcinogen" or "reasonably anticipated to be 
280.29 	a human carcinogen" in the most recent Report on Carcinogens published by the National 
280.30 	Toxicology Program in the United States Department of Health and Human Services; or
280.31 	(2) identified by the federal Environmental Protection Agency as causing birth 
280.32 	defects or reproductive or environmental harm.

281.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

281.2 	Sec. 16. [325F.176] PARTICIPATION IN INTERSTATE CLEARINGHOUSE.
281.3 	The Pollution Control Agency may participate in the establishment and 
281.4 	implementation of a multistate clearinghouse to identify children's products containing 
281.5 	bisphenol-A and phthalates and to evaluate safer alternatives that may be substituted 
281.6 	for those chemicals.

281.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

281.8 	Sec. 17. DEPARTMENT OF HEALTH.
 281.9 	The positions held by the most recently hired deputy commissioner of health and the 
281.10 	most recently hired assistant commissioner of health are abolished.

281.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

281.12 	Sec. 18. REVISOR'S INSTRUCTION.
 281.13 	The revisor of statutes shall change the public pool definition in Minnesota Rules, 
281.14 	part 4717.0250, subpart 8, with the following language: "public pool" means any pool, 
281.15 	other than a residential pool, that is open to the public generally, whether for a fee or free 
281.16 	of charge; open exclusively to members of an organization and their guests; residents of 
281.17 	a multiunit apartment building, apartment complex, residential real estate development, 
281.18 	or other multifamily residential area; or patrons of a hotel or lodging or other public 
281.19 	accommodation facility; or operated by a person in a park, school, licensed child care 
281.20 	facility, group home, motel, camp, resort, club, condominium, manufactured home park, 
281.21 	or political subdivision with the exception of swimming pools at family day care homes 
281.22 	licensed under Minnesota Statutes, section 245A.14, subdivision 11, paragraph (a).

281.23 	ARTICLE 18
281.24 	ADOPTION

281.25 	Section 1. Minnesota Statutes 2006, section 13.465, subdivision 8, is amended to read:
281.26 		Subd. 8.Adoption records. Various adoption records are classified under section 
281.27 	259.53, subdivision 1. Access to the original birth record of a person who has been 
281.28 	adopted is governed by section 259.89 144.2253. 

281.29 	Sec. 2. Minnesota Statutes 2006, section 144.218, subdivision 1, is amended to read:
282.1 		Subdivision 1.Adoption. (a) Upon receipt of a certified copy of an order, decree, 
282.2 	or certificate of adoption, the state registrar shall register a replacement vital record in 
282.3 	the new name of the adopted person. Except as provided in paragraph (b), the original 
282.4 	record of birth is confidential pursuant to private data on individuals as defined in section 
282.5 	13.02, subdivision 3 12, and shall not be disclosed except pursuant to court order or 
282.6 	section 144.2252 or 144.2253. 
282.7 	(b) The information contained on the original birth record, except for the registration 
282.8 	number, shall be provided on request to: (1) a parent who is named on the original birth 
282.9 	record; or (2) the adopted person who is subject of the record if the person is at least 19 
282.10 	years of age, unless there is an affidavit of nondisclosure on file with the state registrar. 
282.11 	Upon the receipt of a certified copy of a court order of annulment of adoption the state 
282.12 	registrar shall restore the original vital record to its original place in the file. 

282.13 	Sec. 3. Minnesota Statutes 2006, section 144.225, subdivision 2, is amended to read:
282.14 		Subd. 2.Data about births. (a) Except as otherwise provided in this subdivision, 
282.15 	data pertaining to the birth of a child to a woman who was not married to the child's father 
282.16 	when the child was conceived nor when the child was born, including the original record 
282.17 	of birth and the certified vital record, are confidential data. At the time of the birth of a 
282.18 	child to a woman who was not married to the child's father when the child was conceived 
282.19 	nor when the child was born, the mother may designate demographic data pertaining to 
282.20 	the birth as public. Notwithstanding the designation of the data as confidential, it may 
282.21 	be disclosed:
282.22 	(1) to a parent or guardian of the child;
282.23 	(2) to the child when the child is 16 years of age or older;
282.24 	(3) under paragraph (b) or (e); or
282.25 	(4) pursuant to a court order. For purposes of this section, a subpoena does not 
282.26 	constitute a court order.
282.27 	(b) Unless the child is adopted, data pertaining to the birth of a child that are not 
282.28 	accessible to the public become public data if 100 years have elapsed since the birth of 
282.29 	the child who is the subject of the data, or as provided under section 13.10, whichever 
282.30 	occurs first. 
282.31 	(c) If a child is adopted, data pertaining to the child's birth are governed by the 
282.32 	provisions relating to adoption records, including sections 13.10, subdivision 5; 144.218, 
282.33 	subdivision 1; 144.2252; 144.2253; and 259.89. 
283.1 	(d) The name and address of a mother under paragraph (a) and the child's date of 
283.2 	birth may be disclosed to the county social services or public health member of a family 
283.3 	services collaborative for purposes of providing services under section 124D.23. 
283.4 	(e) The commissioner of human services shall have access to birth records for:
283.5 	(1) the purposes of administering medical assistance, general assistance medical 
283.6 	care, and the MinnesotaCare program;
283.7 	(2) child support enforcement purposes; and
283.8 	(3) other public health purposes as determined by the commissioner of health.

283.9 	Sec. 4. Minnesota Statutes 2006, section 144.2252, is amended to read:
283.10 	144.2252 ACCESS TO ORIGINAL BIRTH RECORD AFTER ADOPTION.
283.11 	(a) Whenever an adopted person requests the state registrar to disclose the 
283.12 	information on the adopted person's original birth record, the state registrar shall act 
283.13 	according to section 259.89 144.2253. 
283.14 	(b) The state registrar shall provide a transcript of an adopted person's original birth 
283.15 	record to an authorized representative of a federally recognized American Indian tribe 
283.16 	for the sole purpose of determining the adopted person's eligibility for enrollment or 
283.17 	membership. Information contained in the birth record may not be used to provide the 
283.18 	adopted person information about the person's birth parents, except as provided in this 
283.19 	section or section 259.83 144.2253. 

283.20 	Sec. 5. [144.2253] ACCESS TO ORIGINAL BIRTH RECORDS BY ADOPTED 
283.21 	PERSON; DEPARTMENT DUTIES.
283.22 		Subdivision 1.Affidavits. The department shall prepare affidavit of disclosure and 
283.23 	nondisclosure forms under which a birth parent may agree to or object to the release of the 
283.24 	original birth record to the adopted person. The department shall make the forms readily 
283.25 	accessible to birth parents on the department's Web site.
283.26 		Subd. 2.Disclosure. Upon request, the state registrar shall provide a noncertified 
283.27 	copy of the original birth record to an adopted person age 19 or older unless there is an 
283.28 	affidavit of nondisclosure on file. The state registrar must comply with the terms of the 
283.29 	affidavits of disclosure or affidavits of nondisclosure.
283.30 		Subd. 3.Recission of affidavit. A birth parent may rescind an affidavit of disclosure 
283.31 	or an affidavit of nondisclosure at any time.
283.32 		Subd. 4.Affidavit of nondisclosure; access to birth record. (a) If an affidavit 
283.33 	of nondisclosure is on file with the state registrar, an adopted person age 19 or older 
283.34 	may petition the appropriate court for disclosure of the original birth record according to 
284.1 	section 259.61. The court shall grant the petition, if, after consideration of the interests 
284.2 	of all known persons affected by the petition, the court determines that the benefits of 
284.3 	disclosure of the information are greater than the benefits of nondisclosure.
284.4 	(b) An adopted person age 19 or older may request the state registrar to search the 
284.5 	state death records to determine if the birth parent is deceased.  The state registrar may 
284.6 	impose a fee for the record search.  If the birth parent is deceased, a noncertified copy of 
284.7 	the original birth record must be released only to the adopted person making the request.
284.8 		Subd. 5.Information provided. (a) The department shall, in consultation with 
284.9 	adoption agencies and adoption advocates, provide information and educational materials 
284.10 	to adopted persons and birth parents about the changes in the law affecting accessibility 
284.11 	to birth records. For purposes of this subdivision, an adoption advocate is a nonprofit 
284.12 	organization that works with adoption issues in Minnesota.
284.13 	(b) The department shall provide notice on the department Web site about the 
284.14 	change in the law under this article, and will direct individuals to private agencies and 
284.15 	advocates for postadoption resources.

284.16 	Sec. 6. Minnesota Statutes 2006, section 144.226, subdivision 1, is amended to read:
284.17 		Subdivision 1.Which services are for fee. The fees for the following services shall 
284.18 	be the following or an amount prescribed by rule of the commissioner:
284.19 	(a) The fee for the issuance of a certified vital record or a certification that the vital 
284.20 	record cannot be found is $9. No fee shall be charged for a certified birth, stillbirth, or 
284.21 	death record that is reissued within one year of the original issue, if an amendment is 
284.22 	made to the vital record and if the previously issued vital record is surrendered. The 
284.23 	fee is nonrefundable.
284.24 	(b) The fee for processing a request for the replacement of a birth record for 
284.25 	all events, except when filing a recognition of parentage pursuant to section 257.73, 
284.26 	subdivision 1, is $40. The fee is payable at the time of application and is nonrefundable.
284.27 	(c) The fee for processing a request for the filing of a delayed registration of 
284.28 	birth, stillbirth, or death is $40. The fee is payable at the time of application and is 
284.29 	nonrefundable. This fee includes one subsequent review of the request if the request 
284.30 	is not acceptable upon the initial receipt.
284.31 	(d) The fee for processing a request for the amendment of any vital record when 
284.32 	requested more than 45 days after the filing of the vital record is $40. No fee shall be 
284.33 	charged for an amendment requested within 45 days after the filing of the vital record. 
284.34 	The fee is payable at the time of application and is nonrefundable. This fee includes one 
284.35 	subsequent review of the request if the request is not acceptable upon the initial receipt.
285.1 	(e) The fee for processing a request for the verification of information from vital 
285.2 	records is $9 when the applicant furnishes the specific information to locate the vital 
285.3 	record. When the applicant does not furnish specific information, the fee is $20 per hour 
285.4 	for staff time expended. Specific information includes the correct date of the event and 
285.5 	the correct name of the registrant. Fees charged shall approximate the costs incurred in 
285.6 	searching and copying the vital records. The fee is payable at the time of application 
285.7 	and is nonrefundable.
285.8 	(f) The fee for processing a request for the issuance of a copy of any document on 
285.9 	file pertaining to a vital record or statement that a related document cannot be found is $9. 
285.10 	The fee is payable at the time of application and is nonrefundable.
285.11 	(g) The department shall charge a fee of $18 for noncertified copies of birth records 
285.12 	provided to adopted persons age 19 or older. The fee shall cover the costs of providing 
285.13 	the birth record and any costs associated with the distribution of information to adopted 
285.14 	persons and birth parents in subdivision 5.

285.15 	Sec. 7. Minnesota Statutes 2006, section 259.89, subdivision 1, is amended to read:
285.16 		Subdivision 1.Request. An adopted person who is 19 years of age or over may 
285.17 	request the commissioner of health to disclose the information on the adopted person's 
285.18 	original birth record. The commissioner of health shall, within five days of receipt of 
285.19 	the request, notify the commissioner of human services in writing of the request by the 
285.20 	adopted person.

285.21 	Sec. 8. Minnesota Statutes 2006, section 260C.317, subdivision 4, is amended to read:
285.22 		Subd. 4.Rights of terminated parent. Upon entry of an order terminating the 
285.23 	parental rights of any person who is identified as a parent on the original birth record of 
285.24 	the child as to whom the parental rights are terminated, the court shall cause written 
285.25 	notice to be made to that person setting forth:
285.26 	(1) the right of the person to file at any time with the state registrar of vital statistics 
285.27 	a consent to disclosure, as defined in section 144.212, subdivision 11; 
285.28 	(2) the right of the person to file at any time with the state registrar of vital statistics 
285.29 	an affidavit stating that the information on the original birth record shall not be disclosed 
285.30 	as provided in section 144.2252 144.2253; and 
285.31 	(3) the effect of a failure to file either a consent to disclosure, as defined in section 
285.32 	144.212, subdivision 11, or an affidavit stating that the information on the original birth 
285.33 	record shall not be disclosed. 

286.1 	Sec. 9. ADOPTION AGENCIES; FEE.
 286.2 	Adoption agencies may charge a fee for counseling and support services provided to 
286.3 	adopted persons and birth parents.

286.4 	Sec. 10.  REPEALER.
 286.5 	Minnesota Statutes 2006, sections 259.83, subdivision 3; and 259.89, subdivisions 2, 
286.6 	3, 4, and 5, are repealed.

286.7 	Sec. 11. EFFECTIVE DATE.
 286.8 	This article is effective July 1, 2009.

286.9 	ARTICLE 19
286.10 	DEPARTMENT OF HUMAN SERVICES

286.11	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
286.12 	The amounts shown in this section summarize direct appropriations by fund made 
286.13 	in this article.

286.14			2008
		2009
		Total
	
286.15	General
	$
		$
	1,237,000
	$
	1,237,000
	
286.16	Total
	$
		$
	1,237,000
	$
	1,237,000

286.17	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATION.
 	
286.18 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
286.19 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 147, or other 
286.20 	law to the agencies and for the purposes specified in this article. The appropriations 
286.21 	are from the general fund, or another named fund, and are available for the fiscal years 
286.22 	indicated for each purpose. The figures "2008" and "2009" used in this article mean 
286.23 	that the addition or subtraction from appropriations listed under them are available for 
286.24 	the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is 
286.25 	fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 
286.26 	2008 and 2009. Supplemental appropriations and reductions for the fiscal year ending 
286.27 	June 30, 2008, are effective the day following final enactment.

286.28				APPROPRIATIONS
	
286.29				Available for the Year
	
286.30				Ending June 30
	
286.31					2008
		2009

287.1
287.2	Sec. 3. APPROPRIATION FOR 
FOODSHELF PROGRAMS.
 	$
		$
	619,000
	
287.3 	$619,000 is appropriated in fiscal year 2009 
287.4 	from the general fund to the commissioner of 
287.5 	human services for foodshelf programs under 
287.6 	Minnesota Statutes, section 256E.34. This 
287.7 	is a onetime appropriation and is available 
287.8 	until expended. 

287.9287.10
287.11
	Sec. 4. APPROPRIATION FOR 
LONG-TERM HOMELESS SUPPORTIVE 
SERVICES.
 	$
		$
	618,000
	
287.12 	$618,000 is appropriated from the general 
287.13 	fund to the commissioner of human services 
287.14 	in fiscal year 2009 for the long-term homeless 
287.15 	supportive services fund under Minnesota 
287.16 	Statutes, section 256K.26. This is a onetime 
287.17 	appropriation and is available until expended.

287.18 	Sec. 5. Laws 2007, chapter 147, article 19, section 3, subdivision 4, is amended to read:

287.19
287.20	Subd. 4. Children and Economic Assistance 
Grants
 					
287.21 	The amounts that may be spent from this 
287.22 	appropriation for each purpose are as follows: 

287.23	(a) MFIP/DWP Grants 

287.24	Appropriations by Fund 
	
287.25	General 
	62,069,000 
	62,405,000 
	
287.26	Federal TANF 
	75,904,000 
	80,841,000 

287.27	(b) Support Services Grants 

287.28	Appropriations by Fund 
	
287.29	General 
	8,715,000 
	8,715,000 
	
287.30	Federal TANF 
	113,429,000 
	115,902,000 
	
287.31 	TANF Prior Appropriation Cancellation.
287.32 	Notwithstanding Laws 2001, First Special 
287.33 	Session chapter 9, article 17, section 
287.34 	2, subdivision 11, paragraph (b), any 
288.1 	unexpended TANF funds appropriated to the 
288.2 	commissioner to contract with the Board of 
288.3 	Trustees of Minnesota State Colleges and 
288.4 	Universities, to provide tuition waivers to 
288.5 	employees of health care and human service 
288.6 	providers that are members of qualifying 
288.7 	consortia operating under Minnesota 
288.8 	Statutes, sections 116L.10 to 116L.15, must 
288.9 	cancel at the end of fiscal year 2007. 
288.10 	MFIP Pilot Program. Of the TANF 
288.11 	appropriation, $100,000 in fiscal year 2008 
288.12 	and $750,000 in fiscal year 2009 are for a 
288.13 	grant to the Stearns-Benton Employment and 
288.14 	Training Council for the Workforce U pilot 
288.15 	program. Base level funding for this program 
288.16 	shall be $750,000 in 2010 and $0 in 2011. 
288.17 	Supported Work. (1) Of the TANF 
288.18 	appropriation, $5,468,000 in fiscal year 
288.19 	2008 and $7,291,000 in fiscal year 
288.20 	2009 are for supported work for MFIP 
288.21 	participants, to be allocated to counties 
288.22 	and tribes based on the criteria under 
288.23 	clauses (2) and (3). Paid transitional work 
288.24 	experience and other supported employment 
288.25 	under this rider provides a continuum of 
288.26 	employment assistance, including outreach 
288.27 	and recruitment, program orientation 
288.28 	and intake, testing and assessment, job 
288.29 	development and marketing, preworksite 
288.30 	training, supported worksite experience, job 
288.31 	coaching, and postplacement follow-up, in 
288.32 	addition to extensive case management and 
288.33 	referral services. * (The preceding text "and 
288.34 	$7,291,000 in fiscal year 2009" was indicated 
288.35 	as vetoed by the governor.) 
289.1 	(2) A county or tribe is eligible to receive an 
289.2 	allocation under this rider if: 
289.3 	(i) the county or tribe is not meeting the 
289.4 	federal work participation rate; 
289.5 	(ii) the county or tribe has participants who 
289.6 	are required to perform work activities under 
289.7 	Minnesota Statutes, chapter 256J, but are not 
289.8 	meeting hourly work requirements; and 
289.9 	(iii) the county or tribe has assessed 
289.10 	participants who have completed six weeks 
289.11 	of job search or are required to perform 
289.12 	work activities and are not meeting the 
289.13 	hourly requirements, and the county or tribe 
289.14 	has determined that the participant would 
289.15 	benefit from working in a supported work 
289.16 	environment. 
289.17 	(3) A county or tribe may also be eligible for 
289.18 	funds in order to contract for supplemental 
289.19 	hours of paid work at the participant's child's 
289.20 	place of education, child care location, or the 
289.21 	child's physical or mental health treatment 
289.22 	facility or office. This grant to counties and 
289.23 	tribes is specifically for MFIP participants 
289.24 	who need to work up to five hours more 
289.25 	per week in order to meet the hourly work 
289.26 	requirement, and the participant's employer 
289.27 	cannot or will not offer more hours to the 
289.28 	participant. 
289.29 	Work Study. Of the TANF appropriation, 
289.30 	$750,000 each year are to the commissioner 
289.31 	to contract with the Minnesota Office of 
289.32 	Higher Education for the biennium beginning 
289.33 	July 1, 2007, for work study grants under 
289.34 	Minnesota Statutes, section 136A.233, 
289.35 	specifically for low-income individuals who 
290.1 	receive assistance under Minnesota Statutes, 
290.2 	chapter 256J, and for grants to opportunities 
290.3 	industrialization centers. * (The preceding 
290.4 	text beginning "Work Study. Of the TANF 
290.5 	appropriation," was indicated as vetoed by 
290.6 	the governor.) 
290.7 	Integrated Service Projects. $2,500,000 
290.8 	in fiscal year 2008 and $2,500,000 in fiscal 
290.9 	year 2009 are appropriated from the TANF 
290.10 	fund to the commissioner to continue to 
290.11 	fund the existing integrated services projects 
290.12 	for MFIP families, and if funding allows, 
290.13 	additional similar projects. 
290.14 	Base Adjustment. The TANF base for fiscal 
290.15 	year 2010 is $115,902,000 and for fiscal year 
290.16 	2011 is $115,152,000. 

290.17	(c) MFIP Child Care Assistance Grants 

290.18	General 
	74,654,000 
	71,951,000 

290.19
290.20	(d) Basic Sliding Fee Child Care Assistance 
Grants 

290.21	General 
	42,995,000 
	45,008,000 
	
290.22 	Base Adjustment. The general fund base 
290.23 	is $44,881,000 for fiscal year 2010 and 
290.24 	$44,852,000 for fiscal year 2011. 
290.25 	At-Home Infant Care Program. No 
290.26 	funding shall be allocated to or spent on 
290.27 	the at-home infant care program under 
290.28 	Minnesota Statutes, section 119B.035. 

290.29	(e) Child Care Development Grants 

290.30	General 
	4,390,000 
	6,390,000 
	
290.31 	Prekindergarten Exploratory Projects. Of 
290.32 	the general fund appropriation, $2,000,000 
290.33 	the first year and $4,000,000 the second 
291.1 	year are for grants to the city of St. Paul, 
291.2 	Hennepin County, and Blue Earth County to 
291.3 	establish scholarship demonstration projects 
291.4 	to be conducted in partnership with the 
291.5 	Minnesota Early Learning Foundation to 
291.6 	promote children's school readiness. This 
291.7 	appropriation is available until June 30, 2009. 
291.8 	Child Care Services Grants. Of this 
291.9 	appropriation, $500,000 each year are for 
291.10 	the purpose of providing child care services 
291.11 	grants under Minnesota Statutes, section 
291.12 	119B.21, subdivision 5. This appropriation 
291.13 	is for the 2008-2009 biennium only, and does 
291.14 	not increase the base funding. 
291.15 	Early Childhood Professional 
291.16 	Development System. Of this appropriation, 
291.17 	$500,000 each year are for purposes of the 
291.18 	early childhood professional development 
291.19 	system, which increases the quality and 
291.20 	continuum of professional development 
291.21 	opportunities for child care practitioners. 
291.22 	This appropriation is for the 2008-2009 
291.23 	biennium only, and does not increase the 
291.24 	base funding. 
291.25 	Base Adjustment. The general fund base 
291.26 	is $1,515,000 for each of fiscal years 2010 
291.27 	and 2011. 

291.28	(f) Child Support Enforcement Grants 

291.29	General 
	11,038,000 
	3,705,000 
	
291.30 	Child Support Enforcement. $7,333,000 
291.31 	for fiscal year 2008 is to make grants to 
291.32 	counties for child support enforcement 
291.33 	programs to make up for the loss under the 
291.34 	2005 federal Deficit Reduction Act of federal 
292.1 	matching funds for federal incentive funds 
292.2 	passed on to the counties by the state. 
292.3 	This appropriation is available until June 30, 
292.4 	2009. 

292.5	(g) Children's Services Grants 

292.6	Appropriations by Fund 
	
292.7	General 
	63,647,000 
	71,147,000 
	
292.8	Health Care Access 
	250,000 
	-0- 
	
292.9	TANF 
	240,000 
	340,000 
	
292.10 	Grants for Programs Serving Young 
292.11 	Parents. Of the TANF fund appropriation, 
292.12 	$140,000 each year is for a grant to a program 
292.13 	or programs that provide comprehensive 
292.14 	services through a private, nonprofit agency 
292.15 	to young parents in Hennepin County who 
292.16 	have dropped out of school and are receiving 
292.17 	public assistance. The program administrator 
292.18 	shall report annually to the commissioner on 
292.19 	skills development, education, job training, 
292.20 	and job placement outcomes for program 
292.21 	participants. 
292.22 	County Allocations for Rate Increases.
292.23 	County Children and Community Services 
292.24 	Act allocations shall be increased by 
292.25 	$197,000 effective October 1, 2007, and 
292.26 	$696,000 effective October 1, 2008, to help 
292.27 	counties pay for the rate adjustments to 
292.28 	day training and habilitation providers for 
292.29 	participants paid by county social service 
292.30 	funds. Notwithstanding the provisions of 
292.31 	Minnesota Statutes, section 256M.40, the 
292.32 	allocation to a county shall be based on 
292.33 	the county's proportion of social services 
292.34 	spending for day training and habilitation 
292.35 	services as determined in the most recent 
293.1 	social services expenditure and grant 
293.2 	reconciliation report. 
293.3 	Privatized Adoption Grants. Federal 
293.4 	reimbursement for privatized adoption grant 
293.5 	and foster care recruitment grant expenditures 
293.6 	is appropriated to the commissioner for 
293.7 	adoption grants and foster care and adoption 
293.8 	administrative purposes. 
293.9 	Adoption Assistance Incentive Grants.
293.10 	Federal funds available during fiscal year 
293.11 	2008 and fiscal year 2009 for the adoption 
293.12 	incentive grants are appropriated to the 
293.13 	commissioner for these purposes. 
293.14 	Adoption Assistance and Relative Custody 
293.15 	Assistance. The commissioner may transfer 
293.16 	unencumbered appropriation balances for 
293.17 	adoption assistance and relative custody 
293.18 	assistance between fiscal years and between 
293.19 	programs. 
293.20 	Children's Mental Health Grants. Of the 
293.21 	general fund appropriation, $5,913,000 in 
293.22 	fiscal year 2008 and $6,825,000 in fiscal year 
293.23 	2009 are for children's mental health grants. 
293.24 	The purpose of these grants is to increase and 
293.25 	maintain the state's children's mental health 
293.26 	service capacity, especially for school-based 
293.27 	mental health services. The commissioner 
293.28 	shall require grantees to utilize all available 
293.29 	third party reimbursement sources as a 
293.30 	condition of using state grant funds. At 
293.31 	least 15 percent of these funds shall be 
293.32 	used to encourage efficiencies through early 
293.33 	intervention services. At least another 15 
293.34 	percent shall be used to provide respite care 
294.1 	services for children with severe emotional 
294.2 	disturbance at risk of out-of-home placement. 
294.3 	Mental Health Crisis Services. Of the 
294.4 	general fund appropriation, $2,528,000 in 
294.5 	fiscal year 2008 and $2,850,000 in fiscal year 
294.6 	2009 are for statewide funding of children's 
294.7 	mental health crisis services. Providers must 
294.8 	utilize all available funding streams. 
294.9 	Children's Mental Health Evidence-Based 
294.10 	and Best Practices. Of the general fund 
294.11 	appropriation, $375,000 in fiscal year 2008 
294.12 	and $750,000 in fiscal year 2009 are for 
294.13 	children's mental health evidence-based and 
294.14 	best practices including, but not limited 
294.15 	to: Adolescent Integrated Dual Diagnosis 
294.16 	Treatment services; school-based mental 
294.17 	health services; co-location of mental 
294.18 	health and physical health care, and; the 
294.19 	use of technological resources to better 
294.20 	inform diagnosis and development of 
294.21 	treatment plan development by mental 
294.22 	health professionals. The commissioner 
294.23 	shall require grantees to utilize all available 
294.24 	third-party reimbursement sources as a 
294.25 	condition of using state grant funds. 
294.26 	Culturally Specific Mental Health 
294.27 	Treatment Grants. Of the general fund 
294.28 	appropriation, $75,000 in fiscal year 2008 
294.29 	and $300,000 in fiscal year 2009 are for 
294.30 	children's mental health grants to support 
294.31 	increased availability of mental health 
294.32 	services for persons from cultural and 
294.33 	ethnic minorities within the state. The 
294.34 	commissioner shall use at least 20 percent 
294.35 	of these funds to help members of cultural 
295.1 	and ethnic minority communities to become 
295.2 	qualified mental health professionals and 
295.3 	practitioners. The commissioner shall assist 
295.4 	grantees to meet third-party credentialing 
295.5 	requirements and require them to utilize all 
295.6 	available third-party reimbursement sources 
295.7 	as a condition of using state grant funds. 
295.8 	Mental Health Services for Children with 
295.9 	Special Treatment Needs. Of the general 
295.10 	fund appropriation, $50,000 in fiscal year 
295.11 	2008 and $200,000 in fiscal year 2009 are 
295.12 	for children's mental health grants to support 
295.13 	increased availability of mental health 
295.14 	services for children with special treatment 
295.15 	needs. These shall include, but not be limited 
295.16 	to: victims of trauma, including children 
295.17 	subjected to abuse or neglect, veterans and 
295.18 	their families, and refugee populations; 
295.19 	persons with complex treatment needs, such 
295.20 	as eating disorders; and those with low 
295.21 	incidence disorders. 
295.22 	MFIP and Children's Mental Health 
295.23 	Pilot Project. Of the TANF appropriation, 
295.24 	$100,000 in fiscal year 2008 and $200,000 
295.25 	in fiscal year 2009 are to fund the MFIP 
295.26 	and children's mental health pilot project. 
295.27 	Of these amounts, up to $100,000 may be 
295.28 	expended on evaluation of this pilot. 
295.29 	Prenatal Alcohol or Drug Use. Of the 
295.30 	general fund appropriation, $75,000 each 
295.31 	year is to award grants beginning July 1, 
295.32 	2007, to programs that provide services 
295.33 	under Minnesota Statutes, section 254A.171, 
295.34 	in Pine, Kanabec, and Carlton Counties. This 
296.1 	appropriation shall become part of the base 
296.2 	appropriation. 
296.3 	Base Adjustment. The general fund base 
296.4 	is $62,572,000 in fiscal year 2010 and 
296.5 	$62,575,000 in fiscal year 2011. 

296.6	(h) Children and Community Services Grants 

296.7	General 
	101,369,000 
	69,208,000 
	
296.8 	Base Adjustment. The general fund base 
296.9 	is $69,274,000 in each of fiscal years 2010 
296.10 	and 2011. 
296.11 	Targeted Case Management Temporary 
296.12 	Funding. (a) Of the general fund 
296.13 	appropriation, $32,667,000 in fiscal year 
296.14 	2008 is transferred to the targeted case 
296.15 	management contingency reserve account in 
296.16 	the general fund to be allocated to counties 
296.17 	and tribes affected by reductions in targeted 
296.18 	case management federal Medicaid revenue 
296.19 	as a result of the provisions in the federal 
296.20 	Deficit Reduction Act of 2005, Public Law 
296.21 	109-171. 
296.22 	(b) Contingent upon (1) publication by the 
296.23 	federal Centers for Medicare and Medicaid 
296.24 	Services of final regulations implementing 
296.25 	the targeted case management provisions 
296.26 	of the federal Deficit Reduction Act of 
296.27 	2005, Public Law 109-171, or (2) the 
296.28 	issuance of a finding by the Centers for 
296.29 	Medicare and Medicaid Services of federal 
296.30 	Medicaid overpayments for targeted case 
296.31 	management expenditures, up to $32,667,000 
296.32 	is appropriated to the commissioner of human 
296.33 	services. Prior to distribution of funds, the 
296.34 	commissioner shall estimate and certify the 
296.35 	amount by which the federal regulations or 
297.1 	federal disallowance will reduce targeted 
297.2 	case management Medicaid revenue over the 
297.3 	2008-2009 biennium. 
297.4 	(c) Within 60 days of a contingency described 
297.5 	in paragraph (b), the commissioner shall 
297.6 	distribute the grants proportionate to each 
297.7 	affected county or tribe's targeted case 
297.8 	management federal earnings for calendar 
297.9 	year 2005, not to exceed the lower of (1) the 
297.10 	amount of the estimated reduction in federal 
297.11 	revenue or (2) $32,667,000. 
297.12 	(d) These funds are available in either year of 
297.13 	the biennium. Counties and tribes shall use 
297.14 	these funds to pay for social service-related 
297.15 	costs, but the funds are not subject to 
297.16 	provisions of the Children and Community 
297.17 	Services Act grant under Minnesota Statutes, 
297.18 	chapter 256M. 
297.19 	(e) This appropriation shall be available to 
297.20 	pay counties and tribes for expenses incurred 
297.21 	on or after July 1, 2007. The appropriation 
297.22 	shall be available until expended. 

297.23	(i) General Assistance Grants 

297.24	General 
	37,876,000 
	38,253,000 
	
297.25 	General Assistance Standard. The 
297.26 	commissioner shall set the monthly standard 
297.27 	of assistance for general assistance units 
297.28 	consisting of an adult recipient who is 
297.29 	childless and unmarried or living apart 
297.30 	from parents or a legal guardian at $203. 
297.31 	The commissioner may reduce this amount 
297.32 	according to Laws 1997, chapter 85, article 
297.33 	3, section 54. 
298.1 	Emergency General Assistance. The 
298.2 	amount appropriated for emergency general 
298.3 	assistance funds is limited to no more 
298.4 	than $7,889,812 in fiscal year 2008 and 
298.5 	$7,889,812 in fiscal year 2009. Funds 
298.6 	to counties must be allocated by the 
298.7 	commissioner using the allocation method 
298.8 	specified in Minnesota Statutes, section 
298.9 	256D.06. 

298.10	(j) Minnesota Supplemental Aid Grants 

298.11	General 
	30,505,000 
	30,812,000 
	
298.12 	Emergency Minnesota Supplemental 
298.13 	Aid Funds. The amount appropriated for 
298.14 	emergency Minnesota supplemental aid 
298.15 	funds is limited to no more than $1,100,000 
298.16 	in fiscal year 2008 and $1,100,000 in fiscal 
298.17 	year 2009. Funds to counties must be 
298.18 	allocated by the commissioner using the 
298.19 	allocation method specified in Minnesota 
298.20 	Statutes, section 256D.46. 

298.21	(k) Group Residential Housing Grants 

298.22	General 
	91,069,000 
	98,671,000 
	
298.23 	People Incorporated. Of the general fund 
298.24 	appropriation, $460,000 each year is to 
298.25 	augment community support and mental 
298.26 	health services provided to individuals 
298.27 	residing in facilities under Minnesota 
298.28 	Statutes, section 256I.05, subdivision 1m. 

298.29
298.30	(l) Other Children and Economic Assistance 
Grants 

298.31	General 
	20,183,000 
	16,333,000 
	
298.32	Federal TANF 
	1,500,000 
	1,500,000 
	
298.33 	Base Adjustment. The general fund base 
298.34 	shall be $16,033,000 in fiscal year 2010 and 
299.1 	$15,533,000 in fiscal year 2011. The TANF 
299.2 	base shall be $1,500,000 in fiscal year 2010 
299.3 	and $1,181,000 in fiscal year 2011. 
299.4 	Homeless and Runaway Youth. Of the 
299.5 	general fund appropriation, $500,000 each 
299.6 	year are for the Runaway and Homeless 
299.7 	Youth Act under Minnesota Statutes, section 
299.8 	256K.45. Funds shall be spent in each area 
299.9 	of the continuum of care to ensure that 
299.10 	programs are meeting the greatest need. This 
299.11 	is a onetime appropriation. 
299.12 	Long-Term Homelessness. Of the general 
299.13 	fund appropriation, $1,500,000 each year 
299.14 	are $2,000,000 in fiscal year 2008 is  for 
299.15 	implementation of programs to address 
299.16 	long-term homelessness and is available in 
299.17 	either year of the biennium. This is a onetime 
299.18 	appropriation. 
299.19 	Minnesota Community Action Grants. (a) 
299.20 	Of the general fund appropriation, $250,000 
299.21 	each year is for the purposes of Minnesota 
299.22 	community action grants under Minnesota 
299.23 	Statutes, sections 256E.30 to 256E.32. This 
299.24 	is a onetime appropriation. 
299.25 	(b) Of the TANF appropriation, $1,500,000 
299.26 	each year is for community action agencies 
299.27 	for auto repairs, auto loans, and auto purchase 
299.28 	grants to individuals who are eligible to 
299.29 	receive benefits under Minnesota Statutes, 
299.30 	chapter 256J, or who have lost eligibility 
299.31 	for benefits under Minnesota Statutes, 
299.32 	chapter 256J, due to earnings in the prior 12 
299.33 	months. Base level funding for this activity 
299.34 	shall be $1,500,000 in fiscal year 2010 
299.35 	and $1,181,000 in fiscal year 2011. * (The 
300.1 	preceding text beginning "(b) Of the TANF 
300.2 	appropriation," was indicated as vetoed by 
300.3 	the governor.) 
300.4 	(c) Money appropriated under paragraphs (a) 
300.5 	and (b) that is not spent in the first year does 
300.6 	not cancel but is available for the second 
300.7 	year.

300.8 	ARTICLE 20
300.9 	CONTINUING CARE

300.10 	Section 1. Minnesota Statutes 2006, section 256B.0621, subdivision 2, is amended to 
300.11 	read:
300.12 		Subd. 2.Targeted case management; definitions. For purposes of subdivisions 3 
300.13 	to 10, the following terms have the meanings given them:
300.14 	(1) "home care service recipients" means those individuals receiving the following 
300.15 	services under sections 256B.0651 to 256B.0656: skilled nursing visits, home health aide 
300.16 	visits, private duty nursing, personal care assistants, or therapies provided through a 
300.17 	home health agency;
300.18 	(2) "home care targeted case management" means the provision of targeted case 
300.19 	management services for the purpose of assisting home care service recipients to gain 
300.20 	access to needed services and supports so that they may remain in the community;
300.21 	(3) "institutions" means hospitals, consistent with Code of Federal Regulations, title 
300.22 	42, section 440.10; regional treatment center inpatient services, consistent with section 
300.23 	245.474; nursing facilities; and intermediate care facilities for persons with developmental 
300.24 	disabilities;
300.25 	(4) "relocation targeted case management" includes the provision of both county 
300.26 	targeted case management and public or private vendor service coordination services 
300.27 	for the purpose of assisting recipients to gain access to needed services and supports if 
300.28 	they choose to move from an institution to the community. Relocation targeted case 
300.29 	management may be provided during the lesser of:
300.30 	(i) the last 180 consecutive days of an eligible recipient's institutional stay; or
300.31 	(ii) the limits and conditions which apply to federal Medicaid funding for this 
300.32 	service; and
300.33 	(5) "targeted case management" means case management services provided to help 
300.34 	recipients gain access to needed medical, social, educational, and other services and 
300.35 	supports.

301.1 	Sec. 2. Minnesota Statutes 2006, section 256B.0621, subdivision 6, is amended to read:
301.2 		Subd. 6.Eligible services. (a) Services eligible for medical assistance 
301.3 	reimbursement as targeted case management include:
301.4 	(1) assessment of the recipient's need for targeted case management services and 
301.5 	for persons choosing to relocate, the county must provide service coordination provider 
301.6 	options at the first contact and upon request;
301.7 	(2) development, completion, and regular review of a written individual service 
301.8 	plan, which is based upon the assessment of the recipient's needs and choices, and which 
301.9 	will ensure access to medical, social, educational, and other related services and supports;
301.10 	(3) routine contact or communication with the recipient, recipient's family, primary 
301.11 	caregiver, legal representative, substitute care provider, service providers, or other relevant 
301.12 	persons identified as necessary to the development or implementation of the goals of the 
301.13 	individual service plan;
301.14 	(4) coordinating referrals for, and the provision of, case management services for 
301.15 	the recipient with appropriate service providers, consistent with section 1902(a)(23) of 
301.16 	the Social Security Act;
301.17 	(5) coordinating and monitoring the overall service delivery and engaging in 
301.18 	advocacy as needed to ensure quality of services, appropriateness, and continued need;
301.19 	(6) completing and maintaining necessary documentation that supports and verifies 
301.20 	the activities in this subdivision;
301.21 	(7) assisting individuals in order to access needed services, including travel to 
301.22 	conduct a visit with the recipient or other relevant person necessary to develop or 
301.23 	implement the goals of the individual service plan; and
301.24 	(8) coordinating with the institution discharge planner in the 180-day period before 
301.25 	the recipient's discharge.
301.26 	(b) Relocation targeted county case management includes services under paragraph 
301.27 	(a), clauses (1), (2), and (4). Relocation service coordination includes services under 
301.28 	paragraph (a), clauses (3) and (5) to (8). Home care targeted case management includes 
301.29 	services under paragraph (a), clauses (1) to (8).

301.30 	Sec. 3. Minnesota Statutes 2006, section 256B.0621, subdivision 10, is amended to 
301.31 	read:
301.32 		Subd. 10.Payment rates. The commissioner shall set payment rates for targeted 
301.33 	case management under this subdivision. Case managers may bill according to the 
301.34 	following criteria:
302.1 	(1) for relocation targeted case management, case managers may bill for direct case 
302.2 	management activities, including face-to-face and telephone contacts, in the lesser of:
302.3 	(i) 180 days preceding an eligible recipient's discharge from an institution; or
302.4 	(ii) the limits and conditions which apply to federal Medicaid funding for this 
302.5 	service;
302.6 	(2) for home care targeted case management, case managers may bill for direct case 
302.7 	management activities, including face-to-face and telephone contacts; and
302.8 	(3) billings for targeted case management services under this subdivision shall not 
302.9 	duplicate payments made under other program authorities for the same purpose.

302.10 	Sec. 4. Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 20, 
302.11 	is amended to read:
302.12 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
302.13 	of the state agency, medical assistance covers case management services to persons with 
302.14 	serious and persistent mental illness and children with severe emotional disturbance. 
302.15 	Services provided under this section must meet the relevant standards in sections 245.461
302.16 	to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
302.17 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
302.18 	(b) Entities meeting program standards set out in rules governing family community 
302.19 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
302.20 	assistance reimbursement for case management services for children with severe 
302.21 	emotional disturbance when these services meet the program standards in Minnesota 
302.22 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
302.23 	(c) Medical assistance and MinnesotaCare payment for mental health case 
302.24 	management shall be made on a monthly basis. In order to receive payment for an eligible 
302.25 	child, the provider must document at least a face-to-face contact with the child, the child's 
302.26 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
302.27 	provider must document:
302.28 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
302.29 	(2) at least a telephone contact with the adult or the adult's legal representative and 
302.30 	document a face-to-face contact with the adult or the adult's legal representative within 
302.31 	the preceding two months.
302.32 	(d) Payment for mental health case management provided by county or state staff 
302.33 	shall be based on the monthly rate methodology under section 256B.094, subdivision 6, 
302.34 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
302.35 	within mental health, separate rates for children and adults. 
303.1 	(e) Payment for mental health case management provided by Indian health services 
303.2 	or by agencies operated by Indian tribes may be made according to this section or other 
303.3 	relevant federally approved rate setting methodology.
303.4 	(f) Payment for mental health case management provided by vendors who contract 
303.5 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
303.6 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
303.7 	service to other payers. If the service is provided by a team of contracted vendors, the 
303.8 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
303.9 	team shall determine how to distribute the rate among its members. No reimbursement 
303.10 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
303.11 	the county or tribe for advance funding provided by the county or tribe to the vendor.
303.12 	(g) If the service is provided by a team which includes contracted vendors, tribal 
303.13 	staff, and county or state staff, the costs for county or state staff participation in the team 
303.14 	shall be included in the rate for county-provided services. In this case, the contracted 
303.15 	vendor, the tribal agency, and the county may each receive separate payment for services 
303.16 	provided by each entity in the same month. In order to prevent duplication of services, 
303.17 	each entity must document, in the recipient's file, the need for team case management and 
303.18 	a description of the roles of the team members.
303.19 	(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs 
303.20 	for mental health case management shall be provided by the recipient's county of 
303.21 	responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal 
303.22 	funds or funds used to match other federal funds. If the service is provided by a tribal 
303.23 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this 
303.24 	service is paid by the state without a federal share through fee-for-service, 50 percent of 
303.25 	the cost shall be provided by the recipient's county of responsibility.
303.26 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical 
303.27 	assistance, general assistance medical care, and MinnesotaCare include mental health case 
303.28 	management. When the service is provided through prepaid capitation, the nonfederal 
303.29 	share is paid by the state and the county pays no share.
303.30 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
303.31 	provider that does not meet the reporting or other requirements of this section. The county 
303.32 	of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal 
303.33 	agency, is responsible for any federal disallowances. The county or tribe may share this 
303.34 	responsibility with its contracted vendors. 
304.1 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
304.2 	expenditures under this section to repay the special revenue maximization account under 
304.3 	section 256.01, subdivision 2, clause (15). The repayment is limited to: 
304.4 	(1) the costs of developing and implementing this section; and
304.5 	(2) programming the information systems.
304.6 	(l) Payments to counties and tribal agencies for case management expenditures 
304.7 	under this section shall only be made from federal earnings from services provided 
304.8 	under this section. When this service is paid by the state without a federal share through 
304.9 	fee-for-service, 50 percent of the cost shall be provided by the state. Payments to 
304.10 	county-contracted vendors shall include the federal earnings, the state share, and the 
304.11 	county share.
304.12 	(m) Case management services under this subdivision do not include therapy, 
304.13 	treatment, legal, or outreach services.
304.14 	(n) If the recipient is a resident of a nursing facility, intermediate care facility, or 
304.15 	hospital, and the recipient's institutional care is paid by medical assistance, payment for 
304.16 	case management services under this subdivision is limited to the lesser of:
304.17 	(1) the last 180 days of the recipient's residency in that facility and may not exceed 
304.18 	more than six months in a calendar year; or
304.19 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
304.20 	(o) Payment for case management services under this subdivision shall not duplicate 
304.21 	payments made under other program authorities for the same purpose.

304.22 	Sec. 5. [256B.0658] HOUSING ACCESS GRANTS.
304.23 	The commissioner of human services shall award through a competitive process 
304.24 	contracts for grants to public and private agencies to support and assist individuals eligible 
304.25 	for publicly funded home and community-based services, including state plan home care, 
304.26 	to access housing. Grants may be awarded to agencies that may include, but are not limited 
304.27 	to, the following supports: assessment to assure suitability of housing, accompanying an 
304.28 	individual to look at housing, filling out applications and rental agreements, meeting 
304.29 	with landlords, helping with Section 8 or other program applications, helping to develop 
304.30 	a budget, obtaining furniture and household goods, if necessary, and assisting with any 
304.31 	problems that may arise with housing.

304.32 	Sec. 6. Minnesota Statutes 2006, section 256B.0924, subdivision 4, is amended to read:
305.1 		Subd. 4.Targeted case management service activities. (a) For persons with 
305.2 	developmental disabilities, targeted case management services must meet the provisions 
305.3 	of section 256B.092. 
305.4 	(b) For persons not eligible as a person with a developmental disability, targeted 
305.5 	case management service activities include:
305.6 	(1) an assessment of the person's need for targeted case management services;
305.7 	(2) the development of a written personal service plan;
305.8 	(3) a regular review and revision of the written personal service plan with the 
305.9 	recipient and the recipient's legal representative, and others as identified by the recipient, 
305.10 	to ensure access to necessary services and supports identified in the plan;
305.11 	(4) effective communication with the recipient and the recipient's legal representative 
305.12 	and others identified by the recipient;
305.13 	(5) coordination of referrals for needed services with qualified providers;
305.14 	(6) coordination and monitoring of the overall service delivery to ensure the quality 
305.15 	and effectiveness of services;
305.16 	(7) assistance to the recipient and the recipient's legal representative to help make 
305.17 	an informed choice of services;
305.18 	(8) advocating on behalf of the recipient when service barriers are encountered or 
305.19 	referring the recipient and the recipient's legal representative to an independent advocate;
305.20 	(9) monitoring and evaluating services identified in the personal service plan to 
305.21 	ensure personal outcomes are met and to ensure satisfaction with services and service 
305.22 	delivery;
305.23 	(10) conducting face-to-face monitoring with the recipient at least twice a year;
305.24 	(11) completing and maintaining necessary documentation that supports and verifies 
305.25 	the activities in this section;
305.26 	(12) coordinating with the medical assistance facility discharge planner in the 
305.27 	180-day period prior to the recipient's discharge into the community; and
305.28 	(13) a personal service plan developed and reviewed at least annually with the 
305.29 	recipient and the recipient's legal representative. The personal service plan must be revised 
305.30 	when there is a change in the recipient's status. The personal service plan must identify:
305.31 	(i) the desired personal short and long-term outcomes;
305.32 	(ii) the recipient's preferences for services and supports, including development of 
305.33 	a person-centered plan if requested; and
305.34 	(iii) formal and informal services and supports based on areas of assessment, such 
305.35 	as: social, health, mental health, residence, family, educational and vocational, safety, 
306.1 	legal, self-determination, financial, and chemical health as determined by the recipient and 
306.2 	the recipient's legal representative and the recipient's support network.

306.3 	Sec. 7. Minnesota Statutes 2006, section 256B.0924, subdivision 6, is amended to read:
306.4 		Subd. 6.Payment for targeted case management. (a) Medical assistance and 
306.5 	MinnesotaCare payment for targeted case management shall be made on a monthly basis. 
306.6 	In order to receive payment for an eligible adult, the provider must document at least one 
306.7 	contact per month and not more than two consecutive months without a face-to-face 
306.8 	contact with the adult or the adult's legal representative, family, primary caregiver, or 
306.9 	other relevant persons identified as necessary to the development or implementation 
306.10 	of the goals of the personal service plan.
306.11 	(b) Payment for targeted case management provided by county staff under this 
306.12 	subdivision shall be based on the monthly rate methodology under section 256B.094, 
306.13 	subdivision 6, paragraph (b), calculated as one combined average rate together with 
306.14 	adult mental health case management under section 256B.0625, subdivision 20, except 
306.15 	for calendar year 2002. In calendar year 2002, the rate for case management under this 
306.16 	section shall be the same as the rate for adult mental health case management in effect 
306.17 	as of December 31, 2001. Billing and payment must identify the recipient's primary 
306.18 	population group to allow tracking of revenues. 
306.19 	(c) Payment for targeted case management provided by county-contracted vendors 
306.20 	shall be based on a monthly rate negotiated by the host county. The negotiated rate must 
306.21 	not exceed the rate charged by the vendor for the same service to other payers. If the 
306.22 	service is provided by a team of contracted vendors, the county may negotiate a team rate 
306.23 	with a vendor who is a member of the team. The team shall determine how to distribute 
306.24 	the rate among its members. No reimbursement received by contracted vendors shall be 
306.25 	returned to the county, except to reimburse the county for advance funding provided by 
306.26 	the county to the vendor.
306.27 	(d) If the service is provided by a team that includes contracted vendors and county 
306.28 	staff, the costs for county staff participation on the team shall be included in the rate for 
306.29 	county-provided services. In this case, the contracted vendor and the county may each 
306.30 	receive separate payment for services provided by each entity in the same month. In 
306.31 	order to prevent duplication of services, the county must document, in the recipient's file, 
306.32 	the need for team targeted case management and a description of the different roles of 
306.33 	the team members.
306.34 	(e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs 
306.35 	for targeted case management shall be provided by the recipient's county of responsibility, 
307.1 	as defined in sections 256G.01 to 256G.12, from sources other than federal funds or 
307.2 	funds used to match other federal funds. 
307.3 	(f) The commissioner may suspend, reduce, or terminate reimbursement to a 
307.4 	provider that does not meet the reporting or other requirements of this section. The county 
307.5 	of responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal 
307.6 	disallowances. The county may share this responsibility with its contracted vendors. 
307.7 	(g) The commissioner shall set aside five percent of the federal funds received under 
307.8 	this section for use in reimbursing the state for costs of developing and implementing 
307.9 	this section.
307.10 	(h) Payments to counties for targeted case management expenditures under this 
307.11 	section shall only be made from federal earnings from services provided under this 
307.12 	section. Payments to contracted vendors shall include both the federal earnings and the 
307.13 	county share.
307.14 	(i) Notwithstanding section 256B.041, county payments for the cost of case 
307.15 	management services provided by county staff shall not be made to the commissioner of 
307.16 	finance. For the purposes of targeted case management services provided by county staff 
307.17 	under this section, the centralized disbursement of payments to counties under section 
307.18 	256B.041 consists only of federal earnings from services provided under this section. 
307.19 	(j) If the recipient is a resident of a nursing facility, intermediate care facility, or 
307.20 	hospital, and the recipient's institutional care is paid by medical assistance, payment for 
307.21 	targeted case management services under this subdivision is limited to the lesser of:
307.22 	(1) the last 180 days of the recipient's residency in that facility and may not exceed 
307.23 	more than six months in a calendar year; or
307.24 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
307.25 	(k) Payment for targeted case management services under this subdivision shall not 
307.26 	duplicate payments made under other program authorities for the same purpose.
307.27 	(l) Any growth in targeted case management services and cost increases under this 
307.28 	section shall be the responsibility of the counties.

307.29 	Sec. 8. Minnesota Statutes 2006, section 256B.19, subdivision 1d, is amended to read:
307.30 		Subd. 1d.Portion of nonfederal share to be paid by certain counties. (a) 
307.31 	In addition to the percentage contribution paid by a county under subdivision 1, the 
307.32 	governmental units designated in this subdivision shall be responsible for an additional 
307.33 	portion of the nonfederal share of medical assistance cost. For purposes of this 
307.34 	subdivision, "designated governmental unit" means the counties of Becker, Beltrami, 
308.1 	Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, Pennington, Pipestone, Ramsey, St. 
308.2 	Louis, Steele, Todd, Traverse, and Wadena.
308.3 	(b) Beginning in 1994, each of the governmental units designated in this subdivision 
308.4 	shall transfer before noon on May 31 to the state Medicaid agency an amount equal to the 
308.5 	number of licensed beds in any nursing home owned and operated by the county on that 
308.6 	date, with the county named as licensee, multiplied by $5,723. If two or more counties own 
308.7 	and operate a nursing home, the payment shall be prorated. These sums shall be part of the 
308.8 	designated governmental unit's portion of the nonfederal share of medical assistance costs.
308.9 	(c) Beginning in 2002, in addition to any transfer under paragraph (b), each of the 
308.10 	governmental units designated in this subdivision shall transfer before noon on May 31 
308.11 	to the state Medicaid agency an amount equal to the number of licensed beds in any 
308.12 	nursing home owned and operated by the county on that date, with the county named as 
308.13 	licensee, multiplied by $10,784. The provisions of paragraph (b) apply to transfers under 
308.14 	this paragraph.
308.15 	(d) Beginning in 2003, in addition to any transfer under paragraphs (b) and (c), each 
308.16 	of the governmental units designated in this subdivision shall transfer before noon on May 
308.17 	31 to the state Medicaid agency an amount equal to the number of licensed beds in any 
308.18 	nursing home owned and operated by the county on that date, with the county named as 
308.19 	licensee, multiplied by $2,230. The provisions of paragraph (b) apply to transfers under 
308.20 	this paragraph.
308.21 	(e) (d) The commissioner may reduce the intergovernmental transfers under 
308.22 	paragraphs paragraph (c) and (d) based on the commissioner's determination of the 
308.23 	payment rate in section 256B.431, subdivision 23, paragraphs (c), and (d), and (e). Any 
308.24 	adjustments must be made on a per-bed basis and must result in an amount equivalent to 
308.25 	the total amount resulting from the rate adjustment in section 256B.431, subdivision 23, 
308.26 	paragraphs (c), and (d), and (e). 

308.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

308.28 	Sec. 9. Minnesota Statutes 2006, section 256B.431, subdivision 23, is amended to read:
308.29 		Subd. 23.County nursing home payment adjustments. (a) Beginning in 1994, 
308.30 	the commissioner shall pay a nursing home payment adjustment on May 31 after noon 
308.31 	to a county in which is located a nursing home that, on that date, was county-owned and 
308.32 	operated, with the county named as licensee by the commissioner of health, and had over 
308.33 	40 beds and medical assistance occupancy in excess of 50 percent during the reporting 
308.34 	year ending September 30, 1991. The adjustment shall be an amount equal to $16 per 
308.35 	calendar day multiplied by the number of beds licensed in the facility on that date.
309.1 	(b) Payments under paragraph (a) are excluded from medical assistance per diem 
309.2 	rate calculations. These payments are required notwithstanding any rule prohibiting 
309.3 	medical assistance payments from exceeding payments from private pay residents. A 
309.4 	facility receiving a payment under paragraph (a) may not increase charges to private pay 
309.5 	residents by an amount equivalent to the per diem amount payments under paragraph (a) 
309.6 	would equal if converted to a per diem.
309.7 	(c) Beginning in 2002, in addition to any payment under paragraph (a), the 
309.8 	commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in 
309.9 	an amount equal to $29.55 per calendar day multiplied by the number of beds licensed 
309.10 	in the facility on that date. The provisions of paragraphs (a) and (b) apply to payments 
309.11 	under this paragraph.
309.12 	(d) Beginning in 2003, in addition to any payment under paragraphs (a) and (c), the 
309.13 	commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in 
309.14 	an amount equal to $6.11 per calendar day multiplied by the number of beds licensed in 
309.15 	the facility on that date. The provisions of paragraphs (a) and (b) apply to payments 
309.16 	under this paragraph.
309.17 	(e) (d) The commissioner may reduce payments under paragraphs paragraph (c) and 
309.18 	(d) based on the commissioner's determination of Medicare upper payment limits. Any 
309.19 	adjustments must be proportional to adjustments made under section  256B.19, subdivision 
309.20 	1d, paragraph (e) (d). 

309.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

309.22 	Sec. 10. Minnesota Statutes 2007 Supplement, section 256B.434, subdivision 19, 
309.23 	is amended to read:
309.24 		Subd. 19.Nursing facility rate increases beginning October 1, 2007, and 
309.25 	October 1, 2008.  (a) For the rate year beginning October 1, 2007, the commissioner 
309.26 	shall make available to each nursing facility reimbursed under this section operating 
309.27 	payment rate adjustments equal to 1.87 percent of the operating payment rates in effect 
309.28 	on September 30, 2007. For the rate year beginning October 1, 2008, the commissioner 
309.29 	shall make available to each nursing facility reimbursed under this section, operating 
309.30 	payment rate adjustments equal to 2.0 percent of the operating payment rates in effect 
309.31 	on September 30, 2008.
309.32 	(b) Seventy-five percent of the money resulting from the rate adjustment under 
309.33 	paragraph (a) must be used for increases in compensation-related costs for employees 
309.34 	directly employed by the nursing facility on or after the effective date of the rate 
309.35 	adjustment, except:
310.1 	(1) the administrator;
310.2 	(2) persons employed in the central office of a corporation that has an ownership 
310.3 	interest in the nursing facility or exercises control over the nursing facility; and 
310.4 	(3) persons paid by the nursing facility under a management contract.
310.5 	(c) Two-thirds of the money available under paragraph (b) must be used for wage 
310.6 	increases for all employees directly employed by the nursing facility on or after the 
310.7 	effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to 
310.8 	(3). The wage adjustment that employees receive under this paragraph must be paid as 
310.9 	an equal hourly percentage wage increase for all eligible employees. All wage increases 
310.10 	under this paragraph must be effective on the same date. Only costs associated with the 
310.11 	portion of the equal hourly percentage wage increase that goes to all employees shall 
310.12 	qualify under this paragraph. Costs associated with wage increases in excess of the 
310.13 	amount of the equal hourly percentage wage increase provided to all employees shall be 
310.14 	allowed only for meeting the requirements in paragraph (b). This paragraph shall not 
310.15 	apply to employees covered by a collective bargaining agreement.
310.16 	(d) The commissioner shall allow as compensation-related costs all costs for:
310.17 	(1) wages and salaries;
310.18 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
310.19 	compensation;
310.20 	(3) the employer's share of health and dental insurance, life insurance, disability 
310.21 	insurance, long-term care insurance, uniform allowance, and pensions; and
310.22 	(4) other benefits provided, subject to the approval of the commissioner.
310.23 	(e) The portion of the rate adjustment under paragraph (a) that is not subject to the 
310.24 	requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective 
310.25 	October 1, 2007, or October 1, 2008, as applicable.
310.26 	(f) Nursing facilities may apply for the portion of the rate adjustment under 
310.27 	paragraph (a) that is subject to the requirements in paragraphs (b) and (c). The application 
310.28 	must be submitted to the commissioner within six months of the effective date of the 
310.29 	rate adjustment, and the nursing facility must provide additional information required 
310.30 	by the commissioner within nine months of the effective date of the rate adjustment. 
310.31 	The commissioner must respond to all applications within three weeks of receipt. 
310.32 	The commissioner may waive the deadlines in this paragraph under extraordinary 
310.33 	circumstances, to be determined at the sole discretion of the commissioner. The 
310.34 	application must contain:
310.35 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
310.36 	(b) and (c);
311.1 	(2) a detailed distribution plan specifying the allowable compensation-related and 
311.2 	wage increases the nursing facility will implement to use the funds available in clause (1);
311.3 	(3) a description of how the nursing facility will notify eligible employees of 
311.4 	the contents of the approved application, which must provide for giving each eligible 
311.5 	employee a copy of the approved application, excluding the information required in clause 
311.6 	(1), or posting a copy of the approved application, excluding the information required in 
311.7 	clause (1), for a period of at least six weeks in an area of the nursing facility to which all 
311.8 	eligible employees have access; and
311.9 	(4) instructions for employees who believe they have not received the 
311.10 	compensation-related or wage increases specified in clause (2), as approved by the 
311.11 	commissioner, and which must include a mailing address, e-mail address, and the 
311.12 	telephone number that may be used by the employee to contact the commissioner or the 
311.13 	commissioner's representative.
311.14 	(g) The commissioner shall ensure that cost increases in distribution plans under 
311.15 	paragraph (f), clause (2), that may be included in approved applications, comply with the 
311.16 	following requirements:
311.17 	(1) costs to be incurred during the applicable rate year resulting from wage and 
311.18 	salary increases effective after October 1, 2006, and prior to the first day of the nursing 
311.19 	facility's payroll period that includes October 1, 2007 of each year, shall be allowed if they 
311.20 	were not used in the prior year's application;
311.21 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
311.22 	may be considered to be allowable wage increases, according to formulas that the 
311.23 	commissioner shall provide, where employee retention is above the average statewide 
311.24 	rate of retention of direct care employees;
311.25 	(3) the annualized amount of increases in costs for the employer's share of health 
311.26 	and dental insurance, life insurance, disability insurance, and workers' compensation 
311.27 	shall be allowable compensation-related increases if they are effective on or after April 
311.28 	1, 2007, of the year in which the rate adjustments are effective and prior to April 1, 2008
311.29 	of the following year; and 
311.30 	(4) for nursing facilities in which employees are represented by an exclusive 
311.31 	bargaining representative, the commissioner shall approve the application only upon 
311.32 	receipt of a letter of acceptance of the distribution plan, in regard to members of the 
311.33 	bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2007. 
311.34 	Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of 
311.35 	this section as having been met in regard to the members of the bargaining unit.
312.1 	(h) The commissioner shall review applications received under paragraph (f) and 
312.2 	shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the 
312.3 	requirements of this subdivision have been met. The rate adjustment shall be effective 
312.4 	October 1. Notwithstanding paragraph (a), if the approved application distributes less 
312.5 	money than is available, the amount of the rate adjustment shall be reduced so that the 
312.6 	amount of money made available is equal to the amount to be distributed.

312.7 	Sec. 11. Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:
312.8 		Subd. 6.Service delivery. (a) Each demonstration provider shall be responsible for 
312.9 	the health care coordination for eligible individuals. Demonstration providers:
312.10 	(1) shall authorize and arrange for the provision of all needed health services 
312.11 	including but not limited to the full range of services listed in sections 256B.02, 
312.12 	subdivision 8, and 256B.0625 in order to ensure appropriate health care is delivered to 
312.13 	enrollees. Notwithstanding section 256B.0621, demonstration providers that provide 
312.14 	nursing home and community-based services under this section shall provide relocation 
312.15 	service coordination to enrolled persons age 65 and over; 
312.16 	(2) shall accept the prospective, per capita payment from the commissioner in return 
312.17 	for the provision of comprehensive and coordinated health care services for eligible 
312.18 	individuals enrolled in the program;
312.19 	(3) may contract with other health care and social service practitioners to provide 
312.20 	services to enrollees; and
312.21 	(4) shall institute recipient grievance procedures according to the method established 
312.22 	by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved 
312.23 	through this process shall be appealable to the commissioner as provided in subdivision 11.
312.24 	(b) Demonstration providers must comply with the standards for claims settlement 
312.25 	under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health 
312.26 	care and social service practitioners to provide services to enrollees. A demonstration 
312.27 	provider must pay a clean claim, as defined in Code of Federal Regulations, title 42, 
312.28 	section 447.45(b), within 30 business days of the date of acceptance of the claim. 

312.29 	Sec. 12. Minnesota Statutes 2006, section 256D.44, subdivision 2, is amended to read:
312.30 		Subd. 2.Standard of assistance for persons eligible for medical assistance 
312.31 	waivers or at risk of placement in a group residential housing facility. The state 
312.32 	standard of assistance for a person who: (1) is eligible for a medical assistance home and 
312.33 	community-based services waiver or a person who; (2) has been determined by the local 
312.34 	agency to meet the plan requirements for placement in a group residential housing facility 
313.1 	under section 256I.04, subdivision 1a,; or (3) is eligible for a shelter needy payment 
313.2 	under subdivision 5, paragraph (f); is the standard established in subdivision 3, paragraph 
313.3 	(a) or (b). 

313.4 	EFFECTIVE DATE. This section is effective January 1, 2009.

313.5 	Sec. 13. Minnesota Statutes 2006, section 256D.44, subdivision 5, is amended to read:
313.6 		Subd. 5.Special needs. In addition to the state standards of assistance established in 
313.7 	subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 
313.8 	Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
313.9 	center, or a group residential housing facility.
313.10 	(a) The county agency shall pay a monthly allowance for medically prescribed 
313.11 	diets if the cost of those additional dietary needs cannot be met through some other 
313.12 	maintenance benefit. The need for special diets or dietary items must be prescribed by 
313.13 	a licensed physician. Costs for special diets shall be determined as percentages of the 
313.14 	allotment for a one-person household under the thrifty food plan as defined by the United 
313.15 	States Department of Agriculture. The types of diets and the percentages of the thrifty 
313.16 	food plan that are covered are as follows:
313.17 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
313.18 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 
313.19 	of thrifty food plan;
313.20 	(3) controlled protein diet, less than 40 grams and requires special products, 125 
313.21 	percent of thrifty food plan;
313.22 	(4) low cholesterol diet, 25 percent of thrifty food plan;
313.23 	(5) high residue diet, 20 percent of thrifty food plan;
313.24 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
313.25 	(7) gluten-free diet, 25 percent of thrifty food plan;
313.26 	(8) lactose-free diet, 25 percent of thrifty food plan;
313.27 	(9) antidumping diet, 15 percent of thrifty food plan;
313.28 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
313.29 	(11) ketogenic diet, 25 percent of thrifty food plan.
313.30 	(b) Payment for nonrecurring special needs must be allowed for necessary home 
313.31 	repairs or necessary repairs or replacement of household furniture and appliances using 
313.32 	the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 
313.33 	as long as other funding sources are not available.
313.34 	(c) A fee for guardian or conservator service is allowed at a reasonable rate 
313.35 	negotiated by the county or approved by the court. This rate shall not exceed five percent 
314.1 	of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 
314.2 	guardian or conservator is a member of the county agency staff, no fee is allowed.
314.3 	(d) The county agency shall continue to pay a monthly allowance of $68 for 
314.4 	restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 
314.5 	1990, and who eats two or more meals in a restaurant daily. The allowance must continue 
314.6 	until the person has not received Minnesota supplemental aid for one full calendar month 
314.7 	or until the person's living arrangement changes and the person no longer meets the criteria 
314.8 	for the restaurant meal allowance, whichever occurs first.
314.9 	(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 
314.10 	is allowed for representative payee services provided by an agency that meets the 
314.11 	requirements under SSI regulations to charge a fee for representative payee services. This 
314.12 	special need is available to all recipients of Minnesota supplemental aid regardless of 
314.13 	their living arrangement.
314.14 	(f) (1) Notwithstanding the language in this subdivision, an amount equal to the 
314.15 	maximum allotment authorized by the federal Food Stamp Program for a single individual 
314.16 	which is in effect on the first day of January July of the previous each year will be added to 
314.17 	the standards of assistance established in subdivisions 1 to 4 for individuals adults under 
314.18 	the age of 65 who qualify as shelter needy and are: (i) relocating from an institution, or an 
314.19 	adult mental health residential treatment program under section 256B.0622, and who are 
314.20 	shelter needy; (ii) eligible for the self-directed supports option as defined under section 
314.21 	256B.0657, subdivision 2; or (iii) home and community-based waiver recipients living in 
314.22 	their own home or rented or leased apartment which is not owned, operated, or controlled 
314.23 	by a provider of service not related by blood or marriage.
314.24 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 
314.25 	shelter needy benefit under this paragraph is considered a household of one. An eligible 
314.26 	individual who receives this benefit prior to age 65 may continue to receive the benefit 
314.27 	after the age of 65.
314.28 	(3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 
314.29 	exceed 40 percent of the assistance unit's gross income before the application of this 
314.30 	special needs standard. "Gross income" for the purposes of this section is the applicant's or 
314.31 	recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 
314.32 	in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 
314.33 	state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 
314.34 	considered shelter needy for purposes of this paragraph.

314.35 	EFFECTIVE DATE. This section is effective January 1, 2009.

315.1 	Sec. 14. NURSING FACILITY PENSION COSTS.
 315.2 	The commissioner of human services shall evaluate the extent to which the 
315.3 	alternative payment system reimbursement methodology for pension costs leads to 
315.4 	funding shortfalls for nursing facilities that convert from public to private ownership. By 
315.5 	December 15, 2008, the commissioner shall report to the legislature on recommendations 
315.6 	for any changes to the alternative payment system reimbursement methodology for 
315.7 	pension costs necessary to ensure the financial viability of nursing facilities. The 
315.8 	commissioner shall pay for any costs related to this study using existing resources.

315.9 	ARTICLE 21
315.10 	AGENCY MANAGEMENT

315.11 	Section 1. Minnesota Statutes 2006, section 13.461, is amended by adding a 
315.12 	subdivision to read:
315.13 		Subd. 24a.Managed care plans. Data provided to the commissioner of human 
315.14 	services by managed care plans relating to contracts and provider payment rates are 
315.15 	classified under section 256B.69, subdivision 9b.

315.16 	Sec. 2. [144.058] INTERPRETER SERVICES QUALITY INITIATIVE.
315.17 	(a) The commissioner of health shall establish a voluntary statewide roster, and 
315.18 	develop a plan for a registry and certification process for interpreters who provide 
315.19 	high quality, spoken language health care interpreter services. The roster, registry, and 
315.20 	certification process shall be based on the findings and recommendations set forth by the 
315.21 	Interpreter Services Work Group required under Laws 2007, chapter 147, article 12, 
315.22 	section 13. By January 1, 2009, the commissioner shall do the following: 
315.23 	(1) establish a roster of all available interpreters to address access concerns, 
315.24 	particularly in rural areas;
315.25 	(2) develop a plan for a registry of spoken language health care interpreters, 
315.26 	including: 
315.27 	(i) development of standards for registration that set forth educational requirements, 
315.28 	training requirements, demonstration of language proficiency and interpreting skills, 
315.29 	agreement to abide by a code of ethics, and a criminal background check;
315.30 	(ii) recommendations for appropriate alternate requirements in languages for which 
315.31 	testing and training programs do not exist; 
315.32 	(iii) recommendations for appropriate fees; and
315.33 	(iv) recommendations for establishing and maintaining the standards for inclusion 
315.34 	in the registry; and 
316.1 	(3) develop a plan for implementing a certification process based on national 
316.2 	testing and certification processes for spoken language interpreters 12 months after the 
316.3 	establishment of a national certification process. 
316.4 	(b) The commissioner shall consult with the Interpreter Stakeholder Group of the 
316.5 	Upper Midwest Translators and Interpreters Association for advice on the standards 
316.6 	required to plan for the development of a registry and certification process.
316.7 	(c) The commissioner shall charge an annual fee of $50 to include an interpreter in 
316.8 	the roster.

316.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

316.10 	Sec. 3. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
316.11 	to read:
316.12 		Subd. 27.Automation and coordination for state health care programs. (a) For 
316.13 	purposes of this subdivision, "state health care program" means the medical assistance, 
316.14 	MinnesotaCare, or general assistance medical care programs.
316.15 	(b) By July 1, 2010, the commissioner shall improve coordination between state 
316.16 	health care programs and social service programs including but not limited to WIC, free 
316.17 	and reduced school lunch programs, and food stamps, and shall develop and use automated 
316.18 	systems to identify persons served by social service programs who may be eligible for, but 
316.19 	are not enrolled in, a state health care program. The system must also permit enrollees to 
316.20 	renew state health care program enrollment through these social services programs. By 
316.21 	January 15, 2010, the commissioner shall, as necessary, identify and recommend to the 
316.22 	legislature statutory changes to state health care and social service programs necessary 
316.23 	to improve coordination and automation of outreach and enrollment efforts, and report 
316.24 	estimated local and state costs of implementation and evaluate funding alternatives, 
316.25 	including possible federal reimbursement.
316.26 	(c) By January 15, 2010, the commissioner shall establish and implement an 
316.27 	automated process to send out state health care program renewal forms in the most 
316.28 	common foreign languages to those state health care program enrollees who request 
316.29 	renewal forms in those foreign languages. The commissioner, as part of the initial 
316.30 	enrollment process, shall inform applicants of the availability of this option.
316.31 	(d) Beginning July 1, 2010, the commissioner, county social service agencies, and 
316.32 	health care providers shall update state health care program enrollee addresses and related 
316.33 	contact information at the time of each enrollee contact. The commissioner shall report 
316.34 	the costs of automatically updating contact information across programs to health care 
316.35 	providers and county agencies.

317.1 	Sec. 4. Minnesota Statutes 2006, section 256B.69, subdivision 5a, is amended to read:
317.2 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
317.3 	and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year 
317.4 	basis beginning January 1, 1996. Managed care contracts which were in effect on June 
317.5 	30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 
317.6 	through December 31, 1995 at the same terms that were in effect on June 30, 1995. The 
317.7 	commissioner may issue separate contracts with requirements specific to services to 
317.8 	medical assistance recipients age 65 and older. 
317.9 	(b) A prepaid health plan providing covered health services for eligible persons 
317.10 	pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms 
317.11 	of its contract with the commissioner. Requirements applicable to managed care programs 
317.12 	under chapters 256B, 256D, and 256L, established after the effective date of a contract 
317.13 	with the commissioner take effect when the contract is next issued or renewed.
317.14 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
317.15 	shall withhold five percent of managed care plan payments under this section for the 
317.16 	prepaid medical assistance and general assistance medical care programs pending 
317.17 	completion of performance targets. Each performance target must be quantifiable, 
317.18 	objective, measurable, and reasonably attainable, except in the case of a performance 
317.19 	target based on a federal or state law or rule. Criteria for assessment of each performance 
317.20 	target must be outlined in writing prior to the contract effective date. The managed 
317.21 	care plan must demonstrate, to the commissioner's satisfaction, that the data submitted 
317.22 	regarding attainment of the performance target is accurate. The commissioner shall 
317.23 	periodically change the administrative measures used as performance targets in order 
317.24 	to improve plan performance across a broader range of administrative services. The 
317.25 	performance targets must include measurement of plan efforts to contain spending 
317.26 	on health care services and administrative activities. The commissioner may adopt 
317.27 	plan-specific performance targets that take into account factors affecting only one plan, 
317.28 	including characteristics of the plan's enrollee population. The withheld funds must be 
317.29 	returned no sooner than July of the following year if performance targets in the contract 
317.30 	are achieved. The commissioner may exclude special demonstration projects under 
317.31 	subdivision 23. A managed care plan or a county-based purchasing plan under section 
317.32 	256B.692 may include as admitted assets under section 62D.044 any amount withheld 
317.33 	under this paragraph that is reasonably expected to be returned. 

317.34 	Sec. 5. Minnesota Statutes 2006, section 256B.69, is amended by adding a subdivision 
317.35 	to read:
318.1 		Subd. 5i.Administrative expenses. (a) Managed care plan and county-based 
318.2 	purchasing plan administrative costs for a prepaid health plan provided under this section 
318.3 	or section 256B.692 must not exceed by more than five percent that prepaid health plan's 
318.4 	or county-based purchasing plan's actual calculated administrative spending for the 
318.5 	previous calendar year as a percentage of total revenue. The penalty for exceeding this 
318.6 	limit must be the amount of administrative spending in excess of 105 percent of the actual 
318.7 	calculated amount. The commissioner may waive this penalty if the excess administrative 
318.8 	spending is the result of unexpected shifts in enrollment or member needs or new program 
318.9 	requirements.
318.10 	(b) Capitated rate payments for administrative costs must be reduced to exclude 
318.11 	onetime or sporadic expenditures in the prior year unless the managed care plan certifies 
318.12 	that the expenditure will recur during the contract year. The commissioner shall verify 
318.13 	these certifications on an annual basis and recoup any payments made for onetime or 
318.14 	sporadic expenditures that did not occur in the prior year.
318.15 	(c) Expenses listed under section 62D.12, subdivision 9a, clause (4), are not 
318.16 	allowable administrative expenses for rate-setting purposes under this section, unless 
318.17 	approved by the commissioner.

318.18 	Sec. 6. Minnesota Statutes 2006, section 256B.69, is amended by adding a subdivision 
318.19 	to read:
318.20 		Subd. 5j.Treatment of investment earnings. Capitation rates shall treat investment 
318.21 	income and interest earnings as income to the same extent that investment-related 
318.22 	expenses are treated as administrative expenditures.

318.23 	Sec. 7. Minnesota Statutes 2006, section 256B.69, is amended by adding a subdivision 
318.24 	to read:
318.25 		Subd. 9a.Administrative expense reporting. Each managed care plan and 
318.26 	county-based purchasing plan must provide to the commissioner detailed information on 
318.27 	administrative spending, including:
318.28 	(1) itemized lists of costs for claims processing and provider network management;
318.29 	(2) detailed reports of costs for contracts with providers and third-party 
318.30 	administrators;
318.31 	(3) a detailed analysis of administrative spending for each Minnesota health care 
318.32 	program;
318.33 	(4) a detailed analysis of the provider's allocation of administrative expenses among 
318.34 	its public and commercial lines of business;
319.1 	(5) a detailed analysis of administrative costs by service category; and 
319.2 	(6) a detailed analysis of onetime and sporadic expenditures included in the 
319.3 	administrative spending category.

319.4 	Sec. 8. Minnesota Statutes 2006, section 256B.69, is amended by adding a subdivision 
319.5 	to read:
319.6 		Subd. 9b.Reporting of subcontracts and provider payment rates. (a) Each 
319.7 	managed care plan and county-based purchasing plan must provide to the commissioner:
319.8 	(1) detailed information on contracts with health care providers; and
319.9 	(2) detailed information on reimbursement rates paid by the managed care plan 
319.10 	to providers under contract with the plan.
319.11 	(b) Data provided to the commissioner under this subdivision are nonpublic data as 
319.12 	defined in section 13.02.

319.13 	Sec. 9. Minnesota Statutes 2006, section 256B.692, subdivision 2, is amended to read:
319.14 		Subd. 2.Duties of commissioner of health. (a) Notwithstanding chapters 62D 
319.15 	and 62N, a county that elects to purchase medical assistance and general assistance 
319.16 	medical care in return for a fixed sum without regard to the frequency or extent of services 
319.17 	furnished to any particular enrollee is not required to obtain a certificate of authority 
319.18 	under chapter 62D or 62N. The county board of commissioners is the governing body of 
319.19 	a county-based purchasing program. In a multicounty arrangement, the governing body 
319.20 	is a joint powers board established under section 471.59.
319.21 	(b) A county that elects to purchase medical assistance and general assistance 
319.22 	medical care services under this section must satisfy the commissioner of health that the 
319.23 	requirements for assurance of consumer protection, provider protection, and, effective 
319.24 	January 1, 2010, fiscal solvency of chapter 62D, applicable to health maintenance 
319.25 	organizations, or chapter 62N, applicable to community integrated service networks, will 
319.26 	be met. according to the following schedule:
319.27 	(1) for a county-based purchasing plan approved on or before June 30, 2008, the 
319.28 	plan must have in reserve:
319.29 	(i) at least 50 percent of the minimum amount required under chapter 62D as 
319.30 	of January 1, 2010;
319.31 	(ii) at least 75 percent of the minimum amount required under chapter 62D as of 
319.32 	January 1, 2011;
319.33 	(iii) at least 87.5 percent of the minimum amount required under chapter 62D as 
319.34 	of January 1, 2012; and 
320.1 	(iv) at least 100 percent of the minimum amount required under chapter 62D as 
320.2 	of January 1, 2013; and 
320.3 	(2) for a county-based purchasing plan first approved after June 30, 2008, the plan 
320.4 	must have in reserve:
320.5 	(i) at least 50 percent of the minimum amount required under chapter 62D at the 
320.6 	time the plan begins enrolling enrollees;
320.7 	(ii) at least 75 percent of the minimum amount required under chapter 62D after 
320.8 	the first full calendar year;
320.9 	(iii) at least 87.5 percent of the minimum amount required under chapter 62D after 
320.10 	the second full calendar year; and 
320.11 	(iv) at least 100 percent of the minimum amount required under chapter 62D after 
320.12 	the third full calendar year.
320.13 	(c) Until a plan is required to have reserves equaling at least 100 percent of the 
320.14 	minimum amount required under chapter 62D, the plan may demonstrate its ability to 
320.15 	cover any losses by satisfying the requirements of chapter 62N. A county county-based 
320.16 	purchasing plan  must also assure the commissioner of health that the requirements of 
320.17 	sections 62J.041; 62J.48; 62J.71 to 62J.73; 62M.01 to 62M.16; all applicable provisions 
320.18 	of chapter 62Q, including sections 62Q.075; 62Q.1055; 62Q.106; 62Q.12; 62Q.135; 
320.19 	62Q.14; 62Q.145; 62Q.19; 62Q.23, paragraph (c); 62Q.43; 62Q.47; 62Q.50; 62Q.52 to 
320.20 	62Q.56; 62Q.58; 62Q.68 to 62Q.72; and 72A.201 will be met.
320.21 	(d) All enforcement and rulemaking powers available under chapters 62D, 62J, 
320.22 	62M, 62N, and 62Q are hereby granted to the commissioner of health with respect to 
320.23 	counties that purchase medical assistance and general assistance medical care services 
320.24 	under this section.
320.25 	(e) The commissioner, in consultation with county government, shall develop 
320.26 	administrative and financial reporting requirements for county-based purchasing programs 
320.27 	relating to sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 62N.31, 
320.28 	and other sections as necessary, that are specific to county administrative, accounting, and 
320.29 	reporting systems and consistent with other statutory requirements of counties.

320.30 	Sec. 10. Minnesota Statutes 2006, section 256B.692, is amended by adding a 
320.31 	subdivision to read:
320.32 		Subd. 4a.Expenditure of revenues. (a) A county that has elected to participate 
320.33 	in a county-based purchasing plan under this section shall use any excess revenues over 
320.34 	expenses that are received by the county and are not needed for capital reserves under 
320.35 	subdivision 2, to increase payments to providers, or to repay county investments or 
321.1 	contributions to the county-based purchasing plan, for prevention, early intervention, and 
321.2 	health care programs, services, or activities.
321.3 	(b) A county-based purchasing plan under this section is subject to the unreasonable 
321.4 	expense provisions of section 62D.19.

321.5 	Sec. 11. Minnesota Statutes 2006, section 256L.12, subdivision 9, is amended to read:
321.6 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
321.7 	per capita, where possible. The commissioner may allow health plans to arrange for 
321.8 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
321.9 	an independent actuary to determine appropriate rates.
321.10 	(b) For services rendered on or after January 1, 2003, to December 31, 2003, the 
321.11 	commissioner shall withhold .5 percent of managed care plan payments under this section 
321.12 	pending completion of performance targets. The withheld funds must be returned no 
321.13 	sooner than July 1 and no later than July 31 of the following year if performance targets 
321.14 	in the contract are achieved. A managed care plan may include as admitted assets under 
321.15 	section 62D.044 any amount withheld under this paragraph that is reasonably expected 
321.16 	to be returned. 
321.17 	(c) For services rendered on or after January 1, 2004, the commissioner shall 
321.18 	withhold five percent of managed care plan payments under this section pending 
321.19 	completion of performance targets. Each performance target must be quantifiable, 
321.20 	objective, measurable, and reasonably attainable, except in the case of a performance target 
321.21 	based on a federal or state law or rule. Criteria for assessment of each performance target 
321.22 	must be outlined in writing prior to the contract effective date.  The managed care plan 
321.23 	must demonstrate, to the commissioner's satisfaction, that the data submitted regarding 
321.24 	attainment of the performance target is accurate. The commissioner shall periodically 
321.25 	change the administrative measures used as performance targets in order to improve plan 
321.26 	performance across a broader range of administrative services. The performance targets 
321.27 	must include measurement of plan efforts to contain spending on health care services and 
321.28 	administrative activities. The commissioner may adopt plan-specific performance targets 
321.29 	that take into account factors affecting only one plan, such as characteristics of the plan's 
321.30 	enrollee population. The withheld funds must be returned no sooner than July 1 and no 
321.31 	later than July 31 of the following calendar year if performance targets in the contract are 
321.32 	achieved. A managed care plan or a county-based purchasing plan under section 256B.692
321.33 	may include as admitted assets under section 62D.044 any amount withheld under this 
321.34 	paragraph that is reasonably expected to be returned. 

322.1 	Sec. 12. REPORT ON FINANCIAL MANAGEMENT OF HEALTH CARE 
322.2 	PROGRAMS.
 322.3 	By January 15, 2009, the commissioner of human services shall report to the 
322.4 	legislature under Minnesota Statutes, section 3.195, with the following information 
322.5 	regarding financial management of health care programs:
322.6 	(1) a status report on implementation of the cost containment strategies identified in 
322.7 	the 2005 "Strategies for Savings" report. The report must include:
322.8 	(i) information on progress made towards implementation of cost-saving strategies;
322.9 	(ii) an explanation of why certain strategies were not implemented; and 
322.10 	(iii) where appropriate, alternative strategies to those recommended in 2005 for 
322.11 	containing public health care program costs;
322.12 	(2) a description of and, to the extent possible, an explanation of recent differences 
322.13 	between the health plan net revenue targets established by the commissioner for health 
322.14 	plans participating in public health care programs and the actual net revenue realized by 
322.15 	the plans from public programs;
322.16 	(3) the adequacy of public health care program for fee-for-service rates, including 
322.17 	an identification of service areas or geographical regions where enrollees have difficulty 
322.18 	accessing providers as the result of inadequate provider payments. This report must 
322.19 	include recommendations to increase rates as needed to eliminate identified access 
322.20 	problems; and 
322.21 	(4) a progress report on implementation of Minnesota Statutes, section 256B.76, 
322.22 	paragraph (e), requiring payments for physician and professional services to be based 
322.23 	on Medicare relative value units, and an estimated completion date for implementation 
322.24 	of this payment system.

322.25 	Sec. 13. HEALTH PLAN AND COUNTY-BASED PURCHASING PLAN 
322.26 	REQUIREMENTS.
 322.27 	(a) By January 15, 2009, the commissioner of health shall develop and report to the 
322.28 	legislature under Minnesota Statutes, section 3.195, guidelines to ensure that health plans, 
322.29 	and county-based purchasing plans where applicable, have consistent procedures for 
322.30 	allocating administrative expenses and investment income across their commercial and 
322.31 	public lines of business and across individual public programs. The guidelines must be 
322.32 	consistent with generally accepted accounting principles and principles from the National 
322.33 	Association of Insurance Commissioners. The guidelines must not have the effect of 
322.34 	changing allocation for Medicare-related programs as permitted by federal law and the 
322.35 	Centers for Medicare and Medicaid Services.
323.1 	(b) By January 15, 2009, the commissioner of health, in cooperation with the 
323.2 	commissioners of commerce and human services, shall develop and report to the legislature 
323.3 	under Minnesota Statutes, section 3.195, detailed standards and procedures for examining 
323.4 	the reasonableness of health plan and county-based purchasing plan administrative 
323.5 	expenditures for publicly funded programs. These standards and procedures must include 
323.6 	a process for detailed examinations of individual programs and functional areas.
323.7 	(c) By January 15, 2009, the commissioner of health shall develop and report 
323.8 	to the legislature under Minnesota Statutes, section 3.195, a more efficient method for 
323.9 	a health plan, and a county-based purchasing plan where appropriate, to demonstrate to 
323.10 	the commissioner that providers in the plan's network have appropriate credentials. The 
323.11 	commissioner shall review issues regarding:
323.12 	(1) the duplicate review of credentials at a health care provider by multiple health 
323.13 	plans;
323.14 	(2) the review of the credentials of all staff of a health care provider when only 
323.15 	limited staff will be in the plan network; and
323.16 	(3) other duplicative credentialing issues.

323.17 	Sec. 14. OMBUDSMAN FOR MANAGED CARE STUDY.
 323.18 	By January 15, 2009, the commissioner of human services, in cooperation with the 
323.19 	ombudsman for managed care, shall study and report to the legislature under Minnesota 
323.20 	Statutes, section 3.195, with recommendations on whether the duties of the ombudsman 
323.21 	should be expanded to include advocating on behalf of public health care program 
323.22 	fee-for-service enrollees. The report must include:
323.23 	(1) a comparison of the recourse available to managed care clients versus 
323.24 	fee-for-service clients when service problems occur; and 
323.25 	(2) an estimate of any net cost increase from this change in the ombudsman's duties, 
323.26 	taking into account any reduction in the commissioner's duties.

323.27 	Sec. 15. REPORTING MANAGED CARE PERFORMANCE DATA.
 323.28 	By January 15, 2009, the commissioner of human services, in cooperation with 
323.29 	the commissioner of health, shall report to the legislature under Minnesota Statutes, 
323.30 	section 3.195, with recommendations on the adoption of a single method to compute and 
323.31 	publicly report managed health care performance measures in order to avoid confusion 
323.32 	about the plans' performance levels. The study must include recommendations regarding 
323.33 	coordinated use by the two agencies of the following data sources:
324.1 	(1) Healthcare Effectiveness Data and Information Set (HEDIS) from managed 
324.2 	care organizations;
324.3 	(2) data that health plans submit to claim reimbursement for health care procedures; 
324.4 	and 
324.5 	(3) data collected from medical record reviews of randomly selected individuals.

324.6 	Sec. 16. PUBLIC DENTAL COVERAGE PROGRAM STUDY.
 324.7 	(a) The commissioner of human services shall undertake a study to determine 
324.8 	whether alternative approaches to offering dental coverage to public programs enrollees 
324.9 	would result in:
324.10 	(1) improved access to dental care;
324.11 	(2) cost savings to providers and the department; and
324.12 	(3) improved quality and outcomes of care. 
324.13 	Alternatives considered must include moving to a single dental plan administrator, 
324.14 	retaining the current model, and other innovative approaches. Issues relating to chronic 
324.15 	disease management, medical and dental interface, plan payment approaches, and provider 
324.16 	payment should also be addressed. The report must make a recommendation on whether 
324.17 	to alter the current approach to contracting for dental services, and include a detailed 
324.18 	plan on how to implement any changes. The commissioner shall consult with dentists, 
324.19 	safety net dental providers, dental plans, health plans and county-based purchasing 
324.20 	organizations, patients and advocates, and other interested parties in developing their 
324.21 	findings and recommendations. 
324.22 	(b) By December 15, 2008, the commissioner of human services shall report findings 
324.23 	and recommendations to the chairs of the house of representatives and senate committees 
324.24 	having jurisdiction over health and human services policy and finance.

324.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

324.26 	Sec. 17. EVELETH COMMUNITY BEHAVIORAL HEALTH HOSPITAL.
 324.27 	The commissioner of human services shall not reduce the number of registered nurse 
324.28 	full-time equivalent positions at the Eveleth Community Behavior Health Hospital below 
324.29 	the level of funded positions that existed on January 1, 2008.

324.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

324.31 	Sec. 18. WORK GROUP; TARGETED CASE MANAGEMENT.
 325.1 	(a) The commissioner of human services shall convene a work group and seek 
325.2 	information from counties, juvenile court staff, guardians ad litem, and mental health and 
325.3 	child welfare advocates on the impact of federal regulations that cut funding for targeted 
325.4 	case management services and the child support administrative collection system. The 
325.5 	work group shall consider the impact these cuts will have on child protection, mental 
325.6 	health, and housing relocation services.
325.7 	(b) The commissioner shall issue a report from the work group summarizing the 
325.8 	impact of the federal budget cuts on persons eligible for targeted case management 
325.9 	services and the impact on county budgets. This report shall include budget and policy 
325.10 	strategies to restore service levels to that of the year prior to the effective date of the 
325.11 	federal regulations. A preliminary report shall be issued on December 15, 2008.

325.12 	ARTICLE 22
325.13 	CHILDREN AND FAMILY SERVICES

325.14 	Section 1. Minnesota Statutes 2007 Supplement, section 256.741, subdivision 1, 
325.15 	is amended to read:
325.16 		Subdivision 1.Public assistance Definitions. (a) The term "direct support" as used 
325.17 	in this chapter and chapters 257, 518, 518A, and 518C refers to an assigned support 
325.18 	payment from an obligor which is paid directly to a recipient of TANF or MFIP public 
325.19 	assistance.
325.20 	(b) The term "public assistance" as used in this chapter and chapters 257, 518, 518A, 
325.21 	and 518C, includes any form of assistance provided under the AFDC program formerly 
325.22 	codified in sections 256.72 to 256.87, MFIP and MFIP-R formerly codified under chapter 
325.23 	256, MFIP under chapter 256J, work first program formerly codified under chapter 256K; 
325.24 	child care assistance provided through the child care fund under chapter 119B; any form 
325.25 	of medical assistance under chapter 256B; MinnesotaCare under chapter 256L; and foster 
325.26 	care as provided under title IV-E of the Social Security Act. 
325.27 	(c) The term "child support agency" as used in this section refers to the public 
325.28 	authority responsible for child support enforcement.
325.29 	(d) The term "public assistance agency" as used in this section refers to a public 
325.30 	authority providing public assistance to an individual.
325.31 	(e) The terms "child support" and "arrears" as used in this section have the meanings 
325.32 	provided in section 518A.26.
325.33 	(f) The term "maintenance" as used in this section has the meaning provided in 
325.34 	section 518.003.

326.1 	Sec. 2. Minnesota Statutes 2006, section 256.741, subdivision 2, is amended to read:
326.2 		Subd. 2.Assignment of support and maintenance rights. (a) An individual 
326.3 	receiving public assistance in the form of assistance under any of the following programs: 
326.4 	the AFDC program formerly codified in sections 256.72 to 256.87, MFIP under chapter 
326.5 	256J, MFIP-R and MFIP formerly codified under chapter 256, or work first program 
326.6 	formerly codified under chapter 256K is considered to have assigned to the state at the 
326.7 	time of application all rights to child support and maintenance from any other person the 
326.8 	applicant or recipient may have in the individual's own behalf or in the behalf of any other 
326.9 	family member for whom application for public assistance is made. An assistance unit is 
326.10 	ineligible for the Minnesota family investment program unless the caregiver assigns all 
326.11 	rights to child support and spousal maintenance benefits according to this section. 
326.12 	(1) AnThe assignment made according to this section is effective as to:
326.13 	(i) any current child support and current spousal maintenance; and.
326.14 	(ii) any accrued child support and spousal maintenance arrears.
326.15 	(2) An assignment made after September 30, 1997, is effective as to:
326.16 	(i) any current child support and current spousal maintenance;
326.17 	(ii) any accrued child support and spousal maintenance arrears collected before 
326.18 	October 1, 2000, or the date the individual terminates assistance, whichever is later; and
326.19 	(iii) any accrued child support and spousal maintenance arrears collected under 
326.20 	federal tax intercept.
326.21 	(2) Any child support or maintenance arrears that accrue while an individual is 
326.22 	receiving public assistance in the form of assistance under any of the programs listed in 
326.23 	this paragraph are permanently assigned to the state.
326.24 	(3) The assignment of current child support and current maintenance ends on the 
326.25 	date the individual ceases to receive or is no longer eligible to receive public assistance 
326.26 	under any of the programs listed in this paragraph.
326.27 	(b) An individual receiving public assistance in the form of medical assistance, 
326.28 	including MinnesotaCare, is considered to have assigned to the state at the time of 
326.29 	application all rights to medical support from any other person the individual may have 
326.30 	in the individual's own behalf or in the behalf of any other family member for whom 
326.31 	medical assistance is provided.
326.32 	(1) An assignment made after September 30, 1997, is effective as to any medical 
326.33 	support accruing after the date of medical assistance or MinnesotaCare eligibility.
326.34 	(2) Any medical support arrears that accrue while an individual is receiving public 
326.35 	assistance in the form of medical assistance, including MinnesotaCare, are permanently 
326.36 	assigned to the state.
327.1 	(3) The assignment of current medical support ends on the date the individual ceases 
327.2 	to receive or is no longer eligible to receive public assistance in the form of medical 
327.3 	assistance or MinnesotaCare.
327.4 	(c) An individual receiving public assistance in the form of child care assistance 
327.5 	under the child care fund pursuant to chapter 119B is considered to have assigned to the 
327.6 	state at the time of application all rights to child care support from any other person the 
327.7 	individual may have in the individual's own behalf or in the behalf of any other family 
327.8 	member for whom child care assistance is provided.
327.9 	An(1) The assignment made according to this paragraph is effective as to:
327.10 	(1) any current child care support and any child care support arrears assigned and 
327.11 	accruing after July 1, 1997, that are collected before October 1, 2000; and.
327.12 	(2) any accrued child care support arrears collected under federal tax intercept. Any 
327.13 	child care support arrears that accrue while an individual is receiving public assistance in 
327.14 	the form of child care assistance under the child care fund in chapter 119B are permanently 
327.15 	assigned to the state.
327.16 	(3) The assignment of current child care support ends on the date the individual 
327.17 	ceases to receive or is no longer eligible to receive public assistance in the form of child 
327.18 	care assistance under the child care fund under chapter 119B.

327.19 	Sec. 3. Minnesota Statutes 2006, section 256.741, subdivision 2a, is amended to read:
327.20 		Subd. 2a.Families-first Distribution of child support arrearages. (a) The 
327.21 	state shall distribute current child support and maintenance received by the state to an 
327.22 	individual who assigns the right to that support under subdivision 2, paragraph (a).
327.23 	(b) When the public authority collects child support arrearages on behalf of an 
327.24 	individual who is receiving public assistance provided under MFIP or MFIP-R under 
327.25 	this chapter, MFIP under chapter 256J, or work first under chapter 256K, and the public 
327.26 	authority has the option of applying the collection to arrears permanently assigned to the 
327.27 	state or to arrears temporarily assigned to the state, the public authority shall first apply the 
327.28 	collection to satisfy those arrears that are permanently assigned to the state.
327.29 	(c) When the public authority collects child support arrearages on behalf of an 
327.30 	individual who is not receiving public assistance, the public authority shall first apply the 
327.31 	collection to satisfy those arrears that are not permanently assigned to the state.
327.32 	(d) When the public authority collects child support arrearages certified under the 
327.33 	federal tax offset, the public authority shall first apply the collection to satisfy those arrears 
327.34 	that are permanently assigned to the state.

328.1 	Sec. 4. Minnesota Statutes 2006, section 256.741, subdivision 3, is amended to read:
328.2 		Subd. 3.Existing assignments. Assignments based on the receipt of public 
328.3 	assistance in existence prior to July 1, 1997, are permanently assigned to the state. Arrears 
328.4 	that accrued prior to the receipt of assistance that were assigned to the state between July 
328.5 	1, 1997, and October 1, 2009, must no longer be assigned as of October 1, 2009.

328.6 	EFFECTIVE DATE. This section is effective October 1, 2009.

328.7 	Sec. 5. Minnesota Statutes 2007 Supplement, section 256J.621, is amended to read:
328.8 	256J.621 WORK PARTICIPATION BONUS FOOD BENEFITS.
328.9 	(a) Effective March 1, 2010, upon exiting the diversionary work program (DWP) or 
328.10 	upon terminating the Minnesota family investment program (MFIP)cash assistance with 
328.11 	earnings, a participant who is employed may be eligible for transitional assistance work 
328.12 	participation food benefits of $75 per month to assist in meeting the family's basic needs 
328.13 	as the participant continues to move toward self-sufficiency.
328.14 	(b) To be eligible for a transitional assistance payment work participation food 
328.15 	benefits, the participant shall not receive MFIP cash assistance or diversionary work 
328.16 	program assistance during the month and the participant or participants must meet the 
328.17 	following work requirements:
328.18 	(1) if the participant is a single caregiver and has a child under six years of age, the 
328.19 	participant must be employed at least 87 hours per month;
328.20 	(2) if the participant is a single caregiver and does not have a child under six years of 
328.21 	age, the participant must be employed at least 130 hours per month; or
328.22 	(3) if the household is a two-parent family, at least one of the parents must be 
328.23 	employed an average of at least 130 hours per month.
328.24 	Whenever a participant exits the diversionary work program or is terminated from 
328.25 	MFIP cash assistance and meets the other criteria in this section, transitional assistance is
328.26 	work participation food benefits are available for up to 24 consecutive months.
328.27 	(c) Expenditures on the program are maintenance of effort state funds for participants 
328.28 	under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph 
328.29 	(b), clause (3), are nonmaintenance of effort funds. Months in which a participant receives 
328.30 	transitional assistancework participation food benefits under this section do not count 
328.31 	toward the participant's MFIP 60-month time limit.

328.32 	Sec. 6. Minnesota Statutes 2006, section 518A.50, is amended to read:
328.33 	518A.50 PAYMENT TO PUBLIC AGENCY.
329.1 	(a) This section applies to all proceedings involving a support order, including, but 
329.2 	not limited to, a support order establishing an order for past support or reimbursement 
329.3 	of public assistance.
329.4 	(b) The court shall direct that all payments ordered for maintenance or support 
329.5 	be made to the public authority responsible for child support enforcement so long as 
329.6 	the obligee is receiving or has applied for public assistance, or has applied for child 
329.7 	support or maintenance collection services. Public authorities responsible for child 
329.8 	support enforcement may act on behalf of other public authorities responsible for child 
329.9 	support enforcement, including the authority to represent the legal interests of or execute 
329.10 	documents on behalf of the other public authority in connection with the establishment, 
329.11 	enforcement, and collection of child support, maintenance, or medical support, and 
329.12 	collection on judgments.
329.13 	(c) Payments made to the public authority other than payments under section 
329.14 	518A.53 must be credited as of the date the payment is received by the central collections 
329.15 	unit., except that payments made under section 518A.53 may be considered to have been 
329.16 	paid as of the date the obligor received the remainder of the income.
329.17 	(d) Monthly amounts received by the public agency responsible for child support 
329.18 	enforcement from the obligor that are greater than the monthly amount of public assistance 
329.19 	granted to the obligee must be remitted to the obligee.

329.20 	EFFECTIVE DATE. This section is effective October 1, 2009.

329.21 	Sec. 7. Minnesota Statutes 2006, section 518A.53, subdivision 5, is amended to read:
329.22 		Subd. 5.Payor of funds responsibilities. (a) An order for or notice of withholding 
329.23 	is binding on a payor of funds upon receipt. Withholding must begin no later than the first 
329.24 	pay period that occurs after 14 days following the date of receipt of the order for or notice 
329.25 	of withholding. In the case of a financial institution, preauthorized transfers must occur in 
329.26 	accordance with a court-ordered payment schedule.
329.27 	(b) A payor of funds shall withhold from the income payable to the obligor the 
329.28 	amount specified in the order or notice of withholding and amounts specified under 
329.29 	subdivisions 6 and 9 and shall remit the amounts withheld to the public authority within 
329.30 	seven business days of the date the obligor is paid the remainder of the income. The payor 
329.31 	of funds shall include with the remittance the Social Security number of the obligor, the 
329.32 	case type indicator as provided by the public authority and the date the obligor is paid 
329.33 	the remainder of the income. The obligor is considered to have paid the amount withheld 
329.34 	as of the date the obligor received the remainder of the income. A payor of funds may 
330.1 	combine all amounts withheld from one pay period into one payment to each public 
330.2 	authority, but shall separately identify each obligor making payment.
330.3 	(c) A payor of funds shall not discharge, or refuse to hire, or otherwise discipline an 
330.4 	employee as a result of wage or salary withholding authorized by this section. A payor of 
330.5 	funds shall be liable to the obligee for any amounts required to be withheld. A payor of 
330.6 	funds that fails to withhold or transfer funds in accordance with this section is also liable 
330.7 	to the obligee for interest on the funds at the rate applicable to judgments under section 
330.8 	549.09, computed from the date the funds were required to be withheld or transferred. 
330.9 	A payor of funds is liable for reasonable attorney fees of the obligee or public authority 
330.10 	incurred in enforcing the liability under this paragraph. A payor of funds that has failed 
330.11 	to comply with the requirements of this section is subject to contempt sanctions under 
330.12 	section 518A.73. If the payor of funds is an employer or independent contractor and 
330.13 	violates this subdivision, a court may award the obligor twice the wages lost as a result 
330.14 	of this violation. If a court finds a payor of funds violated this subdivision, the court 
330.15 	shall impose a civil fine of not less than $500. The liabilities in this paragraph apply to 
330.16 	intentional noncompliance with this section. 
330.17 	(d) If a single employee is subject to multiple withholding orders or multiple notices 
330.18 	of withholding for the support of more than one child, the payor of funds shall comply 
330.19 	with all of the orders or notices to the extent that the total amount withheld from the 
330.20 	obligor's income does not exceed the limits imposed under the Consumer Credit Protection 
330.21 	Act, United States Code, title 15, section 1673(b), giving priority to amounts designated in 
330.22 	each order or notice as current support as follows:
330.23 	(1) if the total of the amounts designated in the orders for or notices of withholding 
330.24 	as current support exceeds the amount available for income withholding, the payor of 
330.25 	funds shall allocate to each order or notice an amount for current support equal to the 
330.26 	amount designated in that order or notice as current support, divided by the total of the 
330.27 	amounts designated in the orders or notices as current support, multiplied by the amount 
330.28 	of the income available for income withholding; and
330.29 	(2) if the total of the amounts designated in the orders for or notices of withholding 
330.30 	as current support does not exceed the amount available for income withholding, the 
330.31 	payor of funds shall pay the amounts designated as current support, and shall allocate to 
330.32 	each order or notice an amount for past due support, equal to the amount designated in 
330.33 	that order or notice as past due support, divided by the total of the amounts designated in 
330.34 	the orders or notices as past due support, multiplied by the amount of income remaining 
330.35 	available for income withholding after the payment of current support.
331.1 	(e) When an order for or notice of withholding is in effect and the obligor's 
331.2 	employment is terminated, the obligor and the payor of funds shall notify the public 
331.3 	authority of the termination within ten days of the termination date. The termination 
331.4 	notice shall include the obligor's home address and the name and address of the obligor's 
331.5 	new payor of funds, if known.
331.6 	(f) A payor of funds may deduct one dollar from the obligor's remaining salary for 
331.7 	each payment made pursuant to an order for or notice of withholding under this section to 
331.8 	cover the expenses of withholding.

331.9 	EFFECTIVE DATE. This section is effective October 1, 2009.

331.10 	Sec. 8. Laws 2007, chapter 147, article 2, section 21, the effective date, is amended to 
331.11 	read:

331.12 	EFFECTIVE DATE. Subdivision 1 is effective February 1, 2008, and subdivision 
331.13 	2 is effective May 1, 2008 March 1, 2009.

331.14 	Sec. 9. Laws 2007, chapter 147, article 19, section 3, subdivision 1, is amended to read:

331.15	Subdivision 1. Total Appropriation
 	$ 
	5,294,627,000 
	$ 
	5,695,458,000 

331.16	Appropriations by Fund 
	
331.17		2008 
	2009 
	
331.18	General 
	4,614,727,000 
	4,940,293,000 
	
331.19
331.20	State Government 
Special Revenue 
	549,000 
	565,000 
	
331.21	Health Care Access 
	426,628,000 
	492,759,000 
	
331.22	Federal TANF 
	250,537,000 
	260,051,000 
	
331.23	Lottery Prize Fund 
	2,185,000 
	1,790,000 
	
331.24 	The amounts that may be spent for each 
331.25 	purpose are specified in the following 
331.26 	subdivisions. 
331.27 	Receipts for Systems Projects.
331.28 	Appropriations and federal receipts for 
331.29 	information system projects for MAXIS, 
331.30 	PRISM, MMIS, and SSIS must be deposited 
331.31 	in the state system account authorized in 
331.32 	Minnesota Statutes, section 256.014. Money 
331.33 	appropriated for computer projects approved 
331.34 	by the Minnesota Office of Enterprise 
332.1 	Technology, funded by the legislature, and 
332.2 	approved by the commissioner of finance, 
332.3 	may be transferred from one project to 
332.4 	another and from development to operations 
332.5 	as the commissioner of human services 
332.6 	considers necessary. Any unexpended 
332.7 	balance in the appropriation for these 
332.8 	projects does not cancel but is available for 
332.9 	ongoing development and operations. 
332.10 	Pay for Performance. (a) Of the general 
332.11 	fund appropriation, $272,000 each year 
332.12 	is available to the commissioner of 
332.13 	human services only under the following 
332.14 	circumstances: 
332.15 	(1) $272,000 shall be made available by the 
332.16 	commissioner of finance on January 1, 2009, 
332.17 	only after notification by the commissioner 
332.18 	of human services to the commissioner of 
332.19 	finance and to the chairs of the relevant house 
332.20 	of representatives and senate finance and 
332.21 	policy committees that the average number 
332.22 	of days from the receipt of a MinnesotaCare 
332.23 	application at the state processing unit until 
332.24 	the initial eligibility determination of the 
332.25 	application was 30 days or less during the 
332.26 	period October 1, 2007, to September 30, 
332.27 	2008. Applications transferred from counties 
332.28 	to the state processing unit are excluded from 
332.29 	this calculation; and 
332.30 	(2) $272,000 shall be made available by the 
332.31 	commissioner of finance on January 1, 2009, 
332.32 	only after notification by the commissioner 
332.33 	of human services to the commissioner of 
332.34 	finance and to the chairs of the relevant 
332.35 	house of representatives and senate finance 
333.1 	and policy committees that the commissioner 
333.2 	initiated a separate treatment program for 
333.3 	persons in the Minnesota sex offenders 
333.4 	program who are between the ages of 18 and 
333.5 	25 by January 1, 2008. 
333.6 	(b) Regardless of whether these 
333.7 	appropriations are made available to 
333.8 	the commissioner of human services, they 
333.9 	shall be part of base level funding for the 
333.10 	biennium beginning July 1, 2009. 
333.11 	Purchasing Alliance Fund Transfer.
333.12 	On September 1, 2007, any remaining 
333.13 	balance in the purchasing alliance stop-loss 
333.14 	fund account established under Minnesota 
333.15 	Statutes, section 256.956, shall transfer to 
333.16 	the general fund. 
333.17 	Nonfederal Share Transfers. The 
333.18 	nonfederal share of activities for which 
333.19 	federal administrative reimbursement is 
333.20 	appropriated to the commissioner may be 
333.21 	transferred to the special revenue fund. 
333.22 	TANF Maintenance of Effort. (a) In order 
333.23 	to meet the basic MOE requirements of the 
333.24 	TANF block grant specified under Code 
333.25 	of Federal Regulations, title 45, section 
333.26 	263.1, the commissioner may only report 
333.27 	nonfederal money expended for allowable 
333.28 	activities listed in the following clauses as 
333.29 	TANF/MOE expenditures: 
333.30 	(1) MFIP cash, diversionary work program, 
333.31 	and food assistance benefits under Minnesota 
333.32 	Statutes, chapter 256J; 
333.33 	(2) the child care assistance programs 
333.34 	under Minnesota Statutes, sections 119B.03
333.35 	and 119B.05, and county child care 
334.1 	administrative costs under Minnesota 
334.2 	Statutes, section 119B.15; 
334.3 	(3) state and county MFIP administrative 
334.4 	costs under Minnesota Statutes, chapters 
334.5 	256J and 256K; 
334.6 	(4) state, county, and tribal MFIP 
334.7 	employment services under Minnesota 
334.8 	Statutes, chapters 256J and 256K; 
334.9 	(5) expenditures made on behalf of 
334.10 	noncitizen MFIP recipients who qualify 
334.11 	for the medical assistance without federal 
334.12 	financial participation program under 
334.13 	Minnesota Statutes, section 256B.06, 
334.14 	subdivision 4, paragraphs (d), (e), and (j); 
334.15 	and 
334.16 	(6) qualifying working family credit 
334.17 	expenditures under Minnesota Statutes, 
334.18 	section 290.0671. 
334.19 	(b) The commissioner shall ensure that 
334.20 	sufficient qualified nonfederal expenditures 
334.21 	are made each year to meet the state's 
334.22 	TANF/MOE requirements. For the activities 
334.23 	listed in paragraph (a), clauses (2) to 
334.24 	(6), the commissioner may only report 
334.25 	expenditures that are excluded from the 
334.26 	definition of assistance under Code of 
334.27 	Federal Regulations, title 45, section 260.31. 
334.28 	(c) The commissioner shall ensure that the 
334.29 	MOE used by the commissioner of finance 
334.30 	for the February and November forecasts 
334.31 	required under Minnesota Statutes, section 
334.32 	16A.103, contains expenditures under 
334.33 	paragraph (a), clause (1), equal to at least 16 
334.34 	percent of the total required under Code of 
334.35 	Federal Regulations, title 45, section 263.1. 
335.1 	(d) For the federal fiscal year beginning 
335.2 	October 1, 2007, the commissioner may not 
335.3 	claim an amount of TANF/MOE in excess of 
335.4 	the 75 percent standard in Code of Federal 
335.5 	Regulations, title 45, section 263.1(a)(2), 
335.6 	except:
335.7 	(1) to the extent necessary to meet the 80 
335.8 	percent standard under Code of Federal 
335.9 	Regulations, title 45, section 263.1(a)(1), 
335.10 	if it is determined by the commissioner 
335.11 	that the state will not meet the TANF work 
335.12 	participation target rate for the current year;
335.13 	(2) to provide any additional amounts under 
335.14 	Code of Federal Regulations, title 45, section 
335.15 	264.5, that relate to replacement of TANF 
335.16 	funds due to the operation of TANF penalties; 
335.17 	(3) to provide any additional amounts that 
335.18 	may contribute to avoiding or reducing 
335.19 	TANF work participation penalties through 
335.20 	the operation of the excess MOE provisions 
335.21 	of Code of Federal Regulations, title 45, 
335.22 	section 261.43(a)(2); and 
335.23 	(4) for the purposes of clauses (1) to (3), 
335.24 	the commissioner may supplement the 
335.25 	MOE claim with working family credit 
335.26 	expenditures to the extent such expenditures 
335.27 	or other qualified expenditures are otherwise 
335.28 	available after considering the expenditures 
335.29 	allowed in this section.
335.30 	(e) If allowable by the federal Office of 
335.31 	Family Assistance, the commissioner may 
335.32 	claim excess MOE with respect to federal 
335.33 	fiscal years 2006 and 2007 to the extent 
335.34 	that working family credit expenditures are 
335.35 	otherwise available to supplement the state's 
336.1 	MOE claim for those years after considering 
336.2 	the expenditures allowed in this subdivision. 
336.3 	If other qualified expenditures are available, 
336.4 	the commissioner may use those expenditures 
336.5 	as excess MOE and by April 15, 2009, 
336.6 	shall report those expenditures to the chairs 
336.7 	of the senate and house of representatives 
336.8 	Finance Committees, the senate Health and 
336.9 	Human Services Budget Division, and house 
336.10 	of representatives Health Care and Human 
336.11 	Services Finance Division.
336.12 	(d) (f) Minnesota Statutes, section 256.011, 
336.13 	subdivision 3, which requires that federal 
336.14 	grants or aids secured or obtained under that 
336.15 	subdivision be used to reduce any direct 
336.16 	appropriations provided by law, does not 
336.17 	apply if the grants or aids are federal TANF 
336.18 	funds. 
336.19 	(e) (g) Notwithstanding any contrary 
336.20 	provision in this article, this rider expires 
336.21 	June 30, 2011. 
336.22 	Working Family Credit Expenditures as 
336.23 	TANF/MOE. The commissioner may claim 
336.24 	as TANF/MOE up to $6,707,000 per year 
336.25 	for fiscal year 2008 through fiscal year 2011. 
336.26 	Notwithstanding any contrary provision in 
336.27 	this article, this rider expires June 30, 2011. 
336.28 	Additional Working Family Credit 
336.29 	Expenditures to be Claimed for 
336.30 	TANF/MOE. In addition to the amounts 
336.31 	provided in this section, the commissioner 
336.32 	may count the following amounts of working 
336.33 	family credit expenditure as TANF/MOE: 
336.34 	(1) fiscal year 2008, $11,097,000
336.35 	$28,222,000; 
337.1 	(2) fiscal year 2009, $25,401,000
337.2 	$42,905,000; 
337.3 	(3) fiscal year 2010, $20,398,000
337.4 	$29,026,000; and 
337.5 	(4) fiscal year 2011, $19,841,000
337.6 	$28,361,000. 
337.7 	Notwithstanding any contrary provision in 
337.8 	this article, this rider expires June 30, 2011. 
337.9 	Capitation Rate Increase. Of the health care 
337.10 	access fund appropriations to the University 
337.11 	of Minnesota in the higher education 
337.12 	omnibus appropriation bill, $2,157,000 in 
337.13 	fiscal year 2008 and $2,157,000 in fiscal year 
337.14 	2009 are to be used to increase the capitation 
337.15 	payments under Minnesota Statutes, section 
337.16 	256B.69. 

337.17 	Sec. 10.  REPEALER.
 337.18 	Minnesota Statutes 2006, sections 256.741, subdivision 15; and 256J.24, subdivision 
337.19 	6, are repealed.

337.20 	ARTICLE 23
337.21 	HEALTH CARE

337.22 	Section 1. Minnesota Statutes 2006, section 256.969, subdivision 2b, is amended to 
337.23 	read:
337.24 		Subd. 2b.Operating payment rates. In determining operating payment rates for 
337.25 	admissions occurring on or after the rate year beginning January 1, 1991, and every two 
337.26 	years after, or more frequently as determined by the commissioner, the commissioner 
337.27 	shall obtain operating data from an updated base year and establish operating payment 
337.28 	rates per admission for each hospital based on the cost-finding methods and allowable 
337.29 	costs of the Medicare program in effect during the base year. Rates under the general 
337.30 	assistance medical care, medical assistance, and MinnesotaCare programs shall not be 
337.31 	rebased to more current data on January 1, 1997, and January 1, 2005, and for the first 
337.32 	year of the rebased period beginning January 1, 2009. The base year operating payment 
337.33 	rate per admission is standardized by the case mix index and adjusted by the hospital 
338.1 	cost index, relative values, and disproportionate population adjustment. The cost and 
338.2 	charge data used to establish operating rates shall only reflect inpatient services covered 
338.3 	by medical assistance and shall not include property cost information and costs recognized 
338.4 	in outlier payments.

338.5 	Sec. 2. Minnesota Statutes 2006, section 256.969, subdivision 20, is amended to read:
338.6 		Subd. 20.Increases in medical assistance inpatient payments; conditions. (a) 
338.7 	Medical assistance inpatient payments shall increase 20 percent for inpatient hospital 
338.8 	originally paid admissions, excluding Medicare crossovers, that occurred between July 1, 
338.9 	1988 and December 31, 1990, if: (i) the hospital had 100 or fewer Minnesota medical 
338.10 	assistance annualized paid admissions, excluding Medicare crossovers, that were paid by 
338.11 	March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100 
338.12 	or fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and 
338.13 	(iv) the hospital is not located in a city of the first class as defined in section 410.01. 
338.14 	For purposes of this paragraph, medical assistance does not include general assistance 
338.15 	medical care. 
338.16 	(b) Medical assistance inpatient payments shall increase 15 percent for inpatient 
338.17 	hospital originally paid admissions, excluding Medicare crossovers, that occurred between 
338.18 	July 1, 1988 and December 31, 1990, if: (i) the hospital had more than 100 but fewer 
338.19 	than 250 Minnesota medical assistance annualized paid admissions, excluding Medicare 
338.20 	crossovers, that were paid by March 1, 1988, for the period January 1, 1987 to June 30, 
338.21 	1987; (ii) the hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital 
338.22 	is located in Minnesota; and (iv) the hospital is not located in a city of the first class as 
338.23 	defined in section 410.01. For purposes of this paragraph, medical assistance does not 
338.24 	include general assistance medical care. 
338.25 	(c) Medical assistance inpatient payment rates shall increase 20 percent for inpatient 
338.26 	hospital originally paid admissions, excluding Medicare crossovers, that occur on or 
338.27 	after October 1, 1992, if: (i) the hospital had 100 or fewer Minnesota medical assistance 
338.28 	annualized paid admissions, excluding Medicare crossovers, that were paid by March 
338.29 	1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100 or 
338.30 	fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and (iv) 
338.31 	the hospital is not located in a city of the first class as defined in section 410.01. For a 
338.32 	hospital that qualifies for an adjustment under this paragraph and under subdivision 9 or 
338.33 	23, the hospital must be paid the adjustment under subdivisions 9 and 23, as applicable, 
338.34 	plus any amount by which the adjustment under this paragraph exceeds the adjustment 
339.1 	under those subdivisions. For this paragraph, medical assistance does not include general 
339.2 	assistance medical care. 
339.3 	(d) Medical assistance inpatient payment rates shall increase 15 percent for inpatient 
339.4 	hospital originally paid admissions, excluding Medicare crossovers, that occur after 
339.5 	September 30, 1992, if: (i) the hospital had more than 100 but fewer than 250 Minnesota 
339.6 	medical assistance annualized paid admissions, excluding Medicare crossovers, that 
339.7 	were paid by March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the 
339.8 	hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital is located in 
339.9 	Minnesota; and (iv) the hospital is not located in a city of the first class as defined in 
339.10 	section 410.01. For a hospital that qualifies for an adjustment under this paragraph and 
339.11 	under subdivision 9 or 23, the hospital must be paid the adjustment under subdivisions 
339.12 	9 and 23, as applicable, plus any amount by which the adjustment under this paragraph 
339.13 	exceeds the adjustment under those subdivisions. For purposes of this paragraph, medical 
339.14 	assistance does not include general assistance medical care. 
339.15 	(e) For admissions occurring on or after July 1, 2008, fee-for-service inpatient 
339.16 	payments must increase eight percent for a hospital with a medical assistance inpatient 
339.17 	utilization rate of 17.95 percent of total patient days as of the base year in effect on July 1, 
339.18 	2005, and nine percent for a hospital with a medical assistance inpatient utilization rate of 
339.19 	59.60 percent of total patient days as of the base year in effect on July 1, 2005. Payments 
339.20 	made to managed care plans must not be increased to reflect this increase. For purposes of 
339.21 	this paragraph, medical assistance does not include general assistance medical care.

339.22 	Sec. 3. Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to read:
339.23 		Subd. 8.Program established. (a) The commissioner, in cooperation with the 
339.24 	commissioner of commerce, shall establish the Minnesota partnership for long-term care 
339.25 	program to provide for the financing of long-term care through a combination of private 
339.26 	insurance and medical assistance.
339.27 	(b) An individual who meets the requirements in this paragraph is eligible to 
339.28 	participate in the partnership program. The individual must:
339.29 	(1) be a Minnesota resident at the time coverage first became effective under the 
339.30 	partnership policy; and
339.31 	(2) be a beneficiary of a partnership policy that (i) is issued on or after the effective 
339.32 	date of the state plan amendment implementing the partnership program in Minnesota, or 
339.33 	(ii) qualifies as a partnership policy under the provisions of subdivision 8a; and.
340.1 	(3) have exhausted all of the benefits under the partnership policy as described in this 
340.2 	section. Benefits received under a long-term care insurance policy before July 1, 2006, do 
340.3 	not count toward the exhaustion of benefits required in this subdivision.

340.4 	Sec. 4. Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to read:
340.5 		Subd. 9.Medical assistance eligibility. (a) Upon application for medical assistance 
340.6 	program payment of long-term care services by an individual who meets the requirements 
340.7 	described in subdivision 8, the commissioner shall determine the individual's eligibility 
340.8 	for medical assistance according to paragraphs (b) to (i).
340.9 	(b) After determining assets subject to the asset limit under section 256B.056, 
340.10 	subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow the 
340.11 	individual to designate assets to be protected from recovery under subdivisions 13 and 
340.12 	15 up to the dollar amount of the benefits utilized under the partnership policy as of the 
340.13 	effective date of eligibility for medical assistance program payment of long-term care 
340.14 	services. Benefits utilized under a long-term care insurance policy before July 1, 2006, 
340.15 	do not count for the purpose of determining the amount of assets that can be designated. 
340.16 	Designated assets shall be disregarded for purposes of determining eligibility for payment 
340.17 	of long-term care services. The dollar amount of benefits utilized must be equal to the 
340.18 	amount of claims paid by the issuer under the policy as verified by the issuer.
340.19 	(c) The individual shall identify the designated assets and the full fair market value 
340.20 	of those assets and designate them as assets to be protected at the time of initial application 
340.21 	for medical assistance payment of long-term care services. The full fair market value of 
340.22 	real property or interests in real property shall be based on the most recent full assessed 
340.23 	value for property tax purposes for the real property, unless the individual provides a 
340.24 	complete professional appraisal by a licensed appraiser to establish the full fair market 
340.25 	value. The extent of a life estate in real property shall be determined using the life estate 
340.26 	table in the health care program's manual. Ownership of any asset in joint tenancy shall be 
340.27 	treated as ownership as tenants in common for purposes of its designation as a disregarded 
340.28 	asset. The unprotected value of any protected asset is subject to estate recovery according 
340.29 	to subdivisions 13 and 15.
340.30 	(d) The right to designate assets to be protected is personal to the individual and 
340.31 	ends when the individual dies, except as otherwise provided in subdivisions 13 and 
340.32 	15. It does not include the increase in the value of the protected asset and the income, 
340.33 	dividends, or profits from the asset. It may be exercised by the individual or by anyone 
340.34 	with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, 
340.35 	transferred, or given away.
341.1 	(e) If the dollar amount of the benefits utilized under a partnership policy is greater 
341.2 	than the full fair market value of all assets protected at the time of the application for 
341.3 	medical assistance long-term care services, As the individual continues to utilize benefits 
341.4 	under a partnership policy after eligibility for medical assistance payment of long-term 
341.5 	care services begins, the individual may designate, for additional protection, an increase 
341.6 	in the value of protected assets and additional assets that become available during the 
341.7 	individual's lifetime for protection under this section up to the amount of additional 
341.8 	benefits utilized. The individual must make the designation in writing to the county agency 
341.9 	no later than the last date on which the individual must report a change in circumstances to 
341.10 	the county agency, as provided for under the medical assistance program. Any excess used 
341.11 	for this purpose shall not be available to the individual's estate to protect assets in the estate 
341.12 	from recovery under section 256B.15 or 524.3-1202, or otherwise. The amount used for 
341.13 	this purpose must reduce the unused amount of asset protection available to protect assets 
341.14 	in the individual's estate from recovery under section 256B.15 or 524.3-1202, or otherwise.
341.15 	(f) This section applies only to estate recovery under United States Code, title 42, 
341.16 	section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other 
341.17 	provisions of federal law, including, but not limited to, recovery from trusts under United 
341.18 	States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from 
341.19 	annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of 
341.20 	the Deficit Reduction Act of 2005, Public Law 109-171.
341.21 	(g) An individual's protected assets owned by the individual's spouse who applies 
341.22 	for payment of medical assistance long-term care services shall not be protected assets or 
341.23 	disregarded for purposes of eligibility of the individual's spouse solely because they were 
341.24 	protected assets of the individual.
341.25 	(h) Assets designated under this subdivision shall not be subject to penalty under 
341.26 	section 256B.0595.
341.27 	(i) The commissioner shall otherwise determine the individual's eligibility 
341.28 	for payment of long-term care services according to medical assistance eligibility 
341.29 	requirements.

341.30 	Sec. 5. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 1, 
341.31 	is amended to read:
341.32 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
341.33 	assistance benefit plan shall include the following co-payments for all recipients, effective 
341.34 	for services provided on or after October 1, 2003, and before January 1, 2009:
342.1 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
342.2 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
342.3 	established illness, and which is delivered in an ambulatory setting by a physician or 
342.4 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
342.5 	audiologist, optician, or optometrist;
342.6 	(2) $3 for eyeglasses;
342.7 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
342.8 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
342.9 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
342.10 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
342.11 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
342.12 	include the following co-payments for all recipients, effective for services provided on 
342.13 	or after January 1, 2009:
342.14 	(1) $6 for nonemergency visits to a hospital-based emergency room; and
342.15 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
342.16 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
342.17 	shall apply to antipsychotic drugs when used for the treatment of mental illness.; and
342.18 	(3) for individuals identified by the commissioner with income at or below 100 
342.19 	percent of the federal poverty guidelines, total monthly co-payments must not exceed five 
342.20 	percent of family income. For purposes of this paragraph, family income is the total 
342.21 	earned and unearned income of the individual and the individual's spouse, if the spouse is 
342.22 	enrolled in medical assistance and also subject to the five percent limit on co-payments.
342.23 	(c) Recipients of medical assistance are responsible for all co-payments in this 
342.24 	subdivision.

342.25 	Sec. 6. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 3, 
342.26 	is amended to read:
342.27 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider shall 
342.28 	be reduced by the amount of the co-payment, except that reimbursement for prescription 
342.29 	drugs reimbursements shall not be reduced:
342.30 	(1) once a recipient has reached the $12 per month maximum or the $7 per month 
342.31 	maximum effective January 1, 2009, for prescription drug co-payments; or
342.32 	(2) for a recipient identified by the commissioner under 100 percent of the federal 
342.33 	poverty guidelines who has met their monthly five percent co-payment limit.
342.34 	(b) The provider collects the co-payment from the recipient. Providers may not deny 
342.35 	services to recipients who are unable to pay the co-payment.
343.1 	(c) Medical assistance reimbursement to fee-for-service providers and payments to 
343.2 	managed care plans shall not be increased as a result of the removal of the co-payments 
343.3 	effective January 1, 2009.

343.4 	Sec. 7. Minnesota Statutes 2006, section 256B.0917, subdivision 8, is amended to read:
343.5 		Subd. 8.Living-at-home/block nurse program grant. (a) The organization 
343.6 	awarded the contract under subdivision 7, shall develop and administer a grant program 
343.7 	to establish or expand up to 33 45 community-based organizations that will implement 
343.8 	living-at-home/block nurse programs that are designed to enable senior citizens to live as 
343.9 	independently as possible in their homes and in their communities. At least one-half of 
343.10 	the programs must be in counties outside the seven-county metropolitan area. Nonprofit 
343.11 	organizations and units of local government are eligible to apply for grants to establish 
343.12 	the community organizations that will implement living-at-home/block nurse programs. 
343.13 	In awarding grants, the organization awarded the contract under subdivision 7 shall give 
343.14 	preference to nonprofit organizations and units of local government from communities 
343.15 	that:
343.16 	(1) have high nursing home occupancy rates;
343.17 	(2) have a shortage of health care professionals;
343.18 	(3) are located in counties adjacent to, or are located in, counties with existing 
343.19 	living-at-home/block nurse programs; and
343.20 	(4) meet other criteria established by LAH/BN, Inc., in consultation with the 
343.21 	commissioner.
343.22 	(b) Grant applicants must also meet the following criteria:
343.23 	(1) the local community demonstrates a readiness to establish a community model 
343.24 	of care, including the formation of a board of directors, advisory committee, or similar 
343.25 	group, of which at least two-thirds is comprised of community citizens interested in 
343.26 	community-based care for older persons;
343.27 	(2) the program has sponsorship by a credible, representative organization within 
343.28 	the community;
343.29 	(3) the program has defined specific geographic boundaries and defined its 
343.30 	organization, staffing and coordination/delivery of services;
343.31 	(4) the program demonstrates a team approach to coordination and care, ensuring 
343.32 	that the older adult participants, their families, the formal and informal providers are all 
343.33 	part of the effort to plan and provide services; and
344.1 	(5) the program provides assurances that all community resources and funding will 
344.2 	be coordinated and that other funding sources will be maximized, including a person's 
344.3 	own resources.
344.4 	(c) Grant applicants must provide a minimum of five percent of total estimated 
344.5 	development costs from local community funding. Grants shall be awarded for four-year 
344.6 	periods, and the base amount shall not exceed $80,000 per applicant for the grant period. 
344.7 	The organization under contract may increase the grant amount for applicants from 
344.8 	communities that have socioeconomic characteristics that indicate a higher level of need 
344.9 	for assistance. Subject to the availability of funding, grants and grant renewals awarded or 
344.10 	entered into on or after July 1, 1997, shall be renewed by LAH/BN, Inc. every four years, 
344.11 	unless LAH/BN, Inc. determines that the grant recipient has not satisfactorily operated the 
344.12 	living-at-home/block nurse program in compliance with the requirements of paragraphs 
344.13 	(b) and (d). Grants provided to living-at-home/block nurse programs under this paragraph 
344.14 	may be used for both program development and the delivery of services.
344.15 	(d) Each living-at-home/block nurse program shall be designed by representatives of 
344.16 	the communities being served to ensure that the program addresses the specific needs of 
344.17 	the community residents. The programs must be designed to:
344.18 	(1) incorporate the basic community, organizational, and service delivery principles 
344.19 	of the living-at-home/block nurse program model;
344.20 	(2) provide senior citizens with registered nurse directed assessment, provision and 
344.21 	coordination of health and personal care services on a sliding fee basis as an alternative 
344.22 	to expensive nursing home care;
344.23 	(3) provide information, support services, homemaking services, counseling, and 
344.24 	training for the client and family caregivers;
344.25 	(4) encourage the development and use of respite care, caregiver support, and 
344.26 	in-home support programs, such as adult foster care and in-home adult day care;
344.27 	(5) encourage neighborhood residents and local organizations to collaborate in 
344.28 	meeting the needs of senior citizens in their communities;
344.29 	(6) recruit, train, and direct the use of volunteers to provide informal services and 
344.30 	other appropriate support to senior citizens and their caregivers; and
344.31 	(7) provide coordination and management of formal and informal services to senior 
344.32 	citizens and their families using less expensive alternatives.

344.33 	Sec. 8. [256B.194] FEDERAL PAYMENTS.
344.34 		Subdivision 1.Payments at actual cost.   Notwithstanding any other statute or rule 
344.35 	to the contrary, for providers that are units of government, the commissioner may limit 
345.1 	medical assistance and MinnesotaCare payments to a provider's actual cost of providing 
345.2 	services, according to the Centers for Medicare and Medicaid Services (CMS) final rule 
345.3 	referenced in this subdivision. The commissioner may also require medical assistance 
345.4 	and MinnesotaCare providers to provide any information necessary to determine 
345.5 	Medicaid-related costs, and require the cooperation of providers in any audit or review 
345.6 	necessary to ensure payments are limited to cost. This section does not apply to providers 
345.7 	who are exempt from the provisions of  the CMS final rule. This subdivision becomes 
345.8 	effective when the CMS final rule, published May 29, 2007, at Federal Register, Vol. 72, 
345.9 	No. 100, governing payments to providers that are units of government goes into effect at 
345.10 	the end of the moratorium imposed by Congress.
345.11 		Subd. 2.Loss of federal financial participation. For all transfers, certified 
345.12 	expenditures, and medical assistance payments listed in this subdivision, if the 
345.13 	commissioner determines that federal financial participation is no longer available for the 
345.14 	medical assistance payments listed, then related obligations for the nonfederal share of 
345.15 	payments and the medical assistance payments must terminate. The commissioner shall 
345.16 	notify all affected parties of the loss of federal financial participation, and the resulting 
345.17 	payments and obligations that are terminated. If the commissioner determines that federal 
345.18 	financial  participation is no longer available for any medical assistance payments or 
345.19 	contributions  to the nonfederal share of medical assistance payments that have already 
345.20 	been made, the commissioner may collect the medical assistance payments from providers 
345.21 	and return contributions of the nonfederal share to its source. The transfers, certified 
345.22 	expenditures, and medical assistance payments subject to this section are those specified in 
345.23 	section 62J.692, subdivision 7, paragraphs (b) and (c); 256B.19, subdivisions 1c and 1d; 
345.24 	256B.195; 256B.431, subdivision 23; and 256B.69, subdivision 5c, paragraph (a), clauses 
345.25 	(2) to (4); Laws 2002, chapter 220, article 17, section 2, subdivision 3; and Laws 2005, 
345.26 	First Special Session chapter 4, article 9, section 2, subdivision 1.

345.27 	Sec. 9. Minnesota Statutes 2007 Supplement, section 256B.199, is amended to read:
345.28 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
345.29 	(a) Effective July 1, 2007, the commissioner shall apply for federal matching funds 
345.30 	for the expenditures in paragraphs (b) and (c).
345.31 	(b) The commissioner shall apply for federal matching funds for certified public 
345.32 	expenditures as follows:
345.33 	(1) Hennepin County, and Hennepin County Medical Center, Ramsey County, 
345.34 	Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
346.1 	shall report quarterly to the commissioner beginning June 1, 2007, payments made during 
346.2 	the second previous quarter that may qualify for reimbursement under federal law;
346.3 	(2) based on these reports, the commissioner shall apply for federal matching funds. 
346.4 	These funds are appropriated to the commissioner for the payments under section 256.969, 
346.5 	subdivision 27 to offset medical assistance expenditures; and
346.6 	(3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
346.7 	the nonstate entities listed in this paragraph (a) of the amount of federal disproportionate 
346.8 	share hospital payment money expected to be available in the current federal fiscal year.
346.9 	(c) The commissioner shall apply for federal matching funds for general assistance 
346.10 	medical care expenditures as follows:
346.11 	(1) for hospital services occurring on or after July 1, 2007, general assistance medical 
346.12 	care expenditures for fee-for-service inpatient and outpatient hospital payments made by 
346.13 	the department shall be used to apply for federal matching funds, except as limited below:
346.14 	(i) only those general assistance medical care expenditures made to an individual 
346.15 	hospital that would not cause the hospital to exceed its individual hospital limits under 
346.16 	section 1923 of the Social Security Act may be considered; and
346.17 	(ii) general assistance medical care expenditures may be considered only to the extent 
346.18 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
346.19 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
346.20 	information required by the commissioner as necessary for purposes of obtaining federal 
346.21 	Medicaid matching funds for general assistance medical care expenditures.

346.22 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2007.

346.23 	Sec. 10. Minnesota Statutes 2006, section 256B.69, subdivision 5a, is amended to read:
346.24 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
346.25 	and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year 
346.26 	basis beginning January 1, 1996. Managed care contracts which were in effect on June 
346.27 	30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 
346.28 	through December 31, 1995 at the same terms that were in effect on June 30, 1995. The 
346.29 	commissioner may issue separate contracts with requirements specific to services to 
346.30 	medical assistance recipients age 65 and older.
346.31 	(b) A prepaid health plan providing covered health services for eligible persons 
346.32 	pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms 
346.33 	of its contract with the commissioner. Requirements applicable to managed care programs 
346.34 	under chapters 256B, 256D, and 256L, established after the effective date of a contract 
346.35 	with the commissioner take effect when the contract is next issued or renewed.
347.1 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
347.2 	shall withhold five percent of managed care plan payments under this section for the 
347.3 	prepaid medical assistance and general assistance medical care programs pending 
347.4 	completion of performance targets. Each performance target must be quantifiable, 
347.5 	objective, measurable, and reasonably attainable, except in the case of a performance 
347.6 	target based on a federal or state law or rule. Criteria for assessment of each performance 
347.7 	target must be outlined in writing prior to the contract effective date. The withheld funds 
347.8 	must be returned no sooner than July of the following year if performance targets in the 
347.9 	contract are achieved. The commissioner may exclude special demonstration projects 
347.10 	under subdivision 23. A managed care plan or a county-based purchasing plan under 
347.11 	section 256B.692 may include as admitted assets under section 62D.044 any amount 
347.12 	withheld under this paragraph that is reasonably expected to be returned.
347.13 	(d)(1) Effective for services rendered on or after January 1, 2009, the commissioner 
347.14 	shall withhold two percent of managed care plan payments under this section for the 
347.15 	prepaid medical assistance and general assistance medical care programs. The withheld 
347.16 	funds must be returned no sooner than July 1 and no later than July 31 of the following 
347.17 	year. The commissioner may exclude special demonstration projects under subdivision 23.
347.18 	(2) A managed care plan or a county-based purchasing plan under section 256B.692 
347.19 	may include as admitted assets under section 62D.044 any amount withheld under 
347.20 	this paragraph. The return of the withhold under this paragraph is not subject to the 
347.21 	requirements of paragraph (c).

347.22 	Sec. 11. Minnesota Statutes 2006, section 256L.12, subdivision 9, is amended to read:
347.23 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
347.24 	per capita, where possible. The commissioner may allow health plans to arrange for 
347.25 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
347.26 	an independent actuary to determine appropriate rates.
347.27 	(b) For services rendered on or after January 1, 2003, to December 31, 2003, the 
347.28 	commissioner shall withhold .5 percent of managed care plan payments under this section 
347.29 	pending completion of performance targets. The withheld funds must be returned no 
347.30 	sooner than July 1 and no later than July 31 of the following year if performance targets 
347.31 	in the contract are achieved. A managed care plan may include as admitted assets under 
347.32 	section 62D.044 any amount withheld under this paragraph that is reasonably expected 
347.33 	to be returned.
347.34 	(c) For services rendered on or after January 1, 2004, the commissioner shall 
347.35 	withhold five percent of managed care plan payments under this section pending 
348.1 	completion of performance targets. Each performance target must be quantifiable, 
348.2 	objective, measurable, and reasonably attainable, except in the case of a performance 
348.3 	target based on a federal or state law or rule. Criteria for assessment of each performance 
348.4 	target must be outlined in writing prior to the contract effective date. The withheld 
348.5 	funds must be returned no sooner than July 1 and no later than July 31 of the following 
348.6 	calendar year if performance targets in the contract are achieved. A managed care plan or 
348.7 	a county-based purchasing plan under section 256B.692 may include as admitted assets 
348.8 	under section 62D.044 any amount withheld under this paragraph that is reasonably 
348.9 	expected to be returned.
348.10 	(d) For services rendered on or after January 1, 2009, the commissioner shall 
348.11 	withhold two percent of managed care plan payments under this section. The withheld 
348.12 	funds must be returned no sooner than July 1 and no later than July 31 of the following 
348.13 	calendar year. A managed care plan or a county-based purchasing plan under section 
348.14 	256B.692 may include as admitted assets under section 62D.044 any amount withheld 
348.15 	under this paragraph.

348.16 	Sec. 12. FEDERAL APPROVAL FOR INCREASED DISPROPORTIONATE 
348.17 	SHARE HOSPITAL PAYMENTS.
 348.18 	By January 1, 2009, the commissioner of human services, in cooperation with 
348.19 	hospitals with high rates of utilization by medical assistance enrollees, shall develop 
348.20 	and submit for federal approval a proposal to increase disproportionate share hospital 
348.21 	payments to Minnesota hospitals. In developing the proposal, the commissioner shall 
348.22 	consider, but is not required to adopt, disproportionate share hospital payment proposals 
348.23 	from other states that have received federal approval.

348.24 	Sec. 13. REPEALER.
 348.25 	Minnesota Statutes 2007 Supplement, section 256.969, subdivision 27, is repealed 
348.26 	retroactively from July 1, 2007.

348.27 	ARTICLE 24
348.28 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

348.29	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATION.
 	
348.30 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
348.31 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 147, or other 
348.32 	law to the agencies and for the purposes specified in this article. The appropriations 
348.33 	are from the general fund, or another named fund, and are available for the fiscal years 
349.1 	indicated for each purpose. The figures "2008" and "2009" used in this article mean 
349.2 	that the addition or subtraction from appropriations listed under them are available for 
349.3 	the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is 
349.4 	fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 
349.5 	2008 and 2009. Supplemental appropriations and reductions for the fiscal year ending 
349.6 	June 30, 2008, are effective the day following final enactment.

349.7				APPROPRIATIONS
	
349.8				Available for the Year
	
349.9				Ending June 30
	
349.10					2008
		2009

349.11	Sec. 2. HUMAN SERVICES

349.12	Subdivision 1.Total Appropriation
 	$
	(34,855,000)
	$
	(56,265,000)

349.13	Appropriations by Fund
	
349.14		2008
	2009
	
349.15	General
	(51,980,000)
	(80,296,000)
	
349.16	Health Care Access
	0
	(3,292,000)
	
349.17	Federal TANF
	17,125,000
	27,323,000

349.18	Subd. 2.Agency Management

349.19	Financial Operations
		0
		(5,867,000)
	
349.20 	The amounts that may be spent from the 
349.21 	appropriation for each purpose are as follows:
349.22 	Base Adjustment. The general fund base 
349.23 	is increased $23,000 in fiscal year 2010 and 
349.24 	$26,000 in fiscal year 2011.

349.25
349.26	Subd. 3.Revenue and Pass-Through Revenue 
Expenditures

349.27	Federal TANF
		25,000,000
		27,039,000
	
349.28 	Additional TANF Transfer to Social 
349.29 	Services Block Grant. In addition to 
349.30 	transfers allowed under prior law, $5,754,000 
349.31 	in fiscal year 2009 is appropriated to the 
349.32 	commissioner for the purposes of providing 
349.33 	services for families with children whose 
349.34 	incomes are at or below 200 percent 
349.35 	of the federal poverty guidelines. The 
350.1 	commissioner shall authorize a sufficient 
350.2 	transfer of funds from the state's federal 
350.3 	social services block grant to meet this 
350.4 	appropriation. The funds must be distributed 
350.5 	to counties for the children and community 
350.6 	services grant according to the formula for 
350.7 	state appropriations in Minnesota Statutes, 
350.8 	chapter 256M.

350.9350.10
	Subd. 4.Children and Economic Assistance 
Grants
 					
350.11 	The amounts that may be spent from this 
350.12 	appropriation for each purpose are as follows:

350.13	(a) MFIP/DWP Grants

350.14	Appropriations by Fund
	
350.15	General
	(17,125,000)
	(25,947,000)
	
350.16	Federal TANF
	17,125,000
	 27,311,000

350.17	(b) MFIP Child Care Assistance Grants
		0
		0

350.18	(c) Children's Services Grants
		(311,000)
		(1,663,000)
	
350.19 	Base Adjustment. The general fund base 
350.20 	is increased $1,726,000 in fiscal year 2010 
350.21 	and $1,742,000 in fiscal year 2011 due to 
350.22 	the onetime increase in adoption assistance 
350.23 	grants and the onetime decreases in relative 
350.24 	custody assistance grants, and county shift 
350.25 	for children's mental health grants.
350.26 	Funding Usage. Up to 75 percent of the 
350.27 	fiscal year 2010 appropriation for children's 
350.28 	mental health screening grants may be used 
350.29 	to fund calendar year 2009 allocations for 
350.30 	these programs, with the resulting calendar 
350.31 	year funding pattern continuing into the 
350.32 	future.

350.33
350.34	Subd. 4a.Children and Economic Assistance 
Management
 		0
		12,000

351.1	Children and Economic Assistance Operations
		0
		12,000
	
351.2 	MAXIS costs. $12,000 is appropriated in 
351.3 	fiscal year 2009 for MAXIS systems costs. 
351.4 	This appropriation is onetime only.

351.5	Subd. 5.Basic Health Care Grants
 					
351.6 	The amounts that may be spent from this 
351.7 	appropriation for each purpose are as follows:

351.8	(a) MinnesotaCare Grants

351.9	Health Care Access
		0
		(3,292,000)
	
351.10 	Incentive Program and Outreach Grants.
351.11 	Of the appropriation for the Minnesota health 
351.12 	care outreach program in Laws 2007, chapter 
351.13 	147, article 19, section 3, subdivision 7, 
351.14 	paragraph (b):
351.15 	(1) $400,000 in fiscal year 2009 from the 
351.16 	general fund and $200,000 in fiscal year 2009 
351.17 	from the health care access fund are for the 
351.18 	incentive program under Minnesota Statutes, 
351.19 	section 256.962, subdivision 5. For the 
351.20 	biennium  beginning July 1, 2009, base level 
351.21 	funding for this activity shall be $360,000 
351.22 	from the general fund and $160,000 from the 
351.23 	health care access fund; and
351.24 	(2) $100,000 in fiscal year 2009 from the 
351.25 	general fund and $50,000 in fiscal year 2009 
351.26 	from the health care access fund are for the 
351.27 	outreach grants under Minnesota Statutes, 
351.28 	section 256.962, subdivision 2. For the 
351.29 	biennium beginning July 1, 2009, base level 
351.30 	funding for this activity shall be $90,000 
351.31 	from the general fund and $40,000 from the 
351.32 	health  care access fund.

351.33
351.34	(b) MA Basic Health Care Grants - Families 
and Children
		(17,985,000)
		(24,848,000)
	
352.1 	Hospital Payment Delay. Notwithstanding 
352.2 	Laws 2005, First Special Session chapter 4, 
352.3 	article 9, section 2, subdivision 6, payments 
352.4 	from the Medicaid Management Information 
352.5 	System that would otherwise have been made 
352.6 	for inpatient hospital services for medical 
352.7 	assistance enrollees are delayed as follows: 
352.8 	(1) for fiscal year 2008, the last payments for 
352.9 	the month of June must be included in the 
352.10 	first payments in fiscal year 2009; and (2) 
352.11 	for fiscal year 2009, the last payments in the 
352.12 	month of June must be included in the first 
352.13 	payment of fiscal year 2010. The provisions 
352.14 	of Minnesota Statutes, section 16A.124, shall 
352.15 	not apply to these delayed payments.

352.16
352.17	(c) MA Basic Health Care Grants - Elderly and 
Disabled
		(14,028,000)
		(2,254,000)
	
352.18 	Minnesota Disability Health Options Rate 
352.19 	Setting Methodology. The commissioner 
352.20 	shall develop and implement a methodology 
352.21 	for risk adjusting payments for community 
352.22 	alternatives for disabled individuals (CADI) 
352.23 	and traumatic brain injury (TBI) home 
352.24 	and community-based waiver services 
352.25 	delivered under the Minnesota disability 
352.26 	health options program (MnDHO) effective 
352.27 	January 1, 2009. The commissioner shall 
352.28 	take into account the weighting system used 
352.29 	to determine county waiver allocations in 
352.30 	developing the new payment methodology. 
352.31 	Growth in the number of enrollees receiving 
352.32 	CADI or TBI waiver payments through 
352.33 	MnDHO is limited to an increase of 200 
352.34 	enrollees in each calendar year from January 
352.35 	2009 through December 2011. If those limits 
352.36 	are reached, additional members may be 
353.1 	enrolled in MnDHO for basic care services 
353.2 	only as defined under Minnesota Statutes, 
353.3 	section 256B.69, subdivision 28, and the 
353.4 	commissioner may establish a waiting list for 
353.5 	future access of MnDHO members to those 
353.6 	waiver services.
353.7 	Critical Access Dental Reimbursement.
353.8 	Effective for fiscal years beginning on or after 
353.9 	July 1, 2009, funding for medical assistance 
353.10 	critical access dental reimbursement rates 
353.11 	must be paid from the health care access 
353.12 	fund.

353.13	(d) General Assistance Medical Care Grants
		0
		(3,729,000)
	
353.14 	MinnesotaCare Outreach Grants Special 
353.15 	Revenue Account. The balance in the 
353.16 	MinnesotaCare outreach grants special 
353.17 	revenue account at the close of fiscal year 
353.18 	2008 must be transferred to the general fund.

353.19	Subd. 6.Health Care Management
 					
353.20 	The amounts that may be spent from the 
353.21 	appropriation for each purpose are as follows:

353.22	Health Care Administration
		0
		100,000

353.23	Subd. 7.Continuing Care Grants
 					
353.24 	The amounts that may be spent from the 
353.25 	appropriation for each purpose are as follows:

353.26	(a) MA Long-Term Care Facilities Grants
		(2,306,000)
		(2,291,000)

353.27
353.28	(b) MA Long-Term Care Waivers and Home 
Care Grants
		0
		(5,397,000)
	
353.29 	Manage Growth in TBI and CADI Waiver.
353.30 	During the fiscal years beginning on July 
353.31 	1, 2008, July 1, 2009, and July 1, 2010, 
353.32 	the commissioner shall allocate money 
353.33 	for home and community-based programs 
354.1 	covered under Minnesota Statutes, section 
354.2 	256B.49, to ensure a reduction in state 
354.3 	spending that is equivalent to limiting the 
354.4 	caseload growth of the traumatic brain injury 
354.5 	(TBI) waiver to 200 allocations in each 
354.6 	year of the biennium and the community 
354.7 	alternatives for disabled individuals (CADI) 
354.8 	waiver to 1,500 allocations each year of the 
354.9 	biennium. Priorities for the allocation of 
354.10 	funds must be for individuals anticipated to 
354.11 	be discharged from institutional settings or 
354.12 	who are at imminent risk of a placement in 
354.13 	an institutional setting. Notwithstanding any 
354.14 	contrary section in this article, this provision 
354.15 	expires June 30, 2011.

354.16	(c) Mental Health Grants
		0
		(4,555,000)
	
354.17 	Base Adjustment. The general fund base 
354.18 	is increased $5,270,000 in fiscal year 2010 
354.19 	and $5,450,000 in fiscal year 2011 due to the 
354.20 	county payment shift for adult mental health 
354.21 	grants.
354.22 	Targeted case management work group.
354.23 	$15,000 is appropriated from the general 
354.24 	fund for fiscal year 2009 to the commissioner 
354.25 	of human services for administrative costs 
354.26 	directly related to the operation of the 
354.27 	targeted case management work group.

354.28	(d) Chemical Dependency Entitlement Grants
		0
		(1,503,000)
	
354.29 	Payments for Substance Abuse Treatment.
354.30 	For services provided in fiscal year 2009, 
354.31 	county-negotiated rates and provider claims 
354.32 	to the consolidated chemical dependency 
354.33 	fund must not exceed rates charged for 
354.34 	services in excess of those in effect on 
354.35 	May 31, 2008. If statutes authorize a 
355.1 	cost-of-living adjustment during fiscal year 
355.2 	2009, then notwithstanding any law to the 
355.3 	contrary, fiscal year 2009 rates may not 
355.4 	exceed those in effect on May 31, 2008, plus 
355.5 	any authorized cost-of-living adjustments.
355.6 	Chemical Dependency Treatment Fund 
355.7 	Special Revenue Account.
355.8 	The lesser of the balance of the consolidated 
355.9 	chemical dependency treatment fund at the 
355.10 	close of fiscal year 2008 or $2,650,000 must 
355.11 	be transferred and deposited into the general 
355.12 	fund.

355.13
355.14	(e) Chemical Dependency Nonentitlement 
Grants
		0
		2,150,000
	
355.15 	Base Level Adjustment. The general 
355.16 	fund base for chemical dependency 
355.17 	nonentitlement treatment grants shall be 
355.18 	increased by $150,000 for fiscal years 
355.19 	2010 and 2011 for increased grants for 
355.20 	methamphetamine treatment.
355.21 	American Indian Youth Program. Of the 
355.22 	general fund appropriation, $2,000,000 in 
355.23 	fiscal year 2009 is for grants to be awarded 
355.24 	competitively to American Indian tribes to 
355.25 	purchase or develop one or more culturally 
355.26 	specific treatment programs designed to 
355.27 	serve youth from native cultures. This 
355.28 	appropriation is onetime and available until 
355.29 	spent.

355.30	(f) Other Continuing Care Grants
		0
		(4,381,000)
	
355.31 	Base Level Adjustment. The general fund 
355.32 	base is increased $7,633,000 in fiscal year 
355.33 	2010 and $5,332,000 in fiscal year 2011, due 
355.34 	to the onetime reduction of HIV grants in 
355.35 	fiscal year 2009, an increase each year for 
356.1 	housing grants under Minnesota Statutes, 
356.2 	section 256B.0658, and the adjustment 
356.3 	for the county grant payment shift for 
356.4 	developmental disability semi-independent 
356.5 	services grants and developmental disability 
356.6 	family support grants.
356.7 	Housing Access Grants. Of the general 
356.8 	fund appropriation, $250,000 is appropriated 
356.9 	in fiscal year 2009 for housing access 
356.10 	grants under Minnesota Statutes, section 
356.11 	256B.0658.
356.12 	Funding Usage. Up to 75 percent of 
356.13 	the fiscal year 2010 appropriation for 
356.14 	developmental disability semi-independent 
356.15 	living services grants and developmental 
356.16 	disability family support grants may be used 
356.17 	to fund calendar year 2009 allocations for 
356.18 	these programs, with the resulting calendar 
356.19 	year funding pattern continuing into the 
356.20 	future.
356.21 	Living-At-Home/Block Nurse Program 
356.22 	Funding. For the fiscal year beginning 
356.23 	July 1, 2008, the commissioner of human 
356.24 	services shall transfer $240,000 from the 
356.25 	community service grant program under 
356.26 	Minnesota Statutes, section 256B.0917, 
356.27 	subdivision 13, to the living-at-home/block 
356.28 	nurse program under Minnesota Statutes, 
356.29 	section 256B.0917, subdivision 8, to provide 
356.30 	$20,000 each for 12 living-at-home/block 
356.31 	nurse programs currently operating without 
356.32 	base funding. This is onetime funding.

356.33	Subd. 8.State-Operated Services
 					
356.34 	County Past Due Receivables. The 
356.35 	commissioner is authorized to withhold 
357.1 	county federal administrative reimbursement 
357.2 	when the county of financial responsibility 
357.3 	for cost-of-care payments due to the state 
357.4 	under Minnesota Statutes, section 246.54 
357.5 	or 253B.045, is 180 days past due. The 
357.6 	commissioner shall deposit the federal 
357.7 	administrative withholding into the general 
357.8 	fund to settle the claims with the county of 
357.9 	financial responsibility.

357.10	Mental Health Services
		(225,000)
		(300,000)

357.11	Sec. 3. Health Department
 					
357.12 	Federally Qualified Health Centers.
357.13 	Effective for fiscal years beginning on 
357.14 	or after July 1, 2009, the general fund 
357.15 	appropriation of $1,500,000 each fiscal year 
357.16 	for federally qualified health centers under 
357.17 	Minnesota Statutes, section 145.9269, is 
357.18 	eliminated and is replaced by a $1,500,000 
357.19 	appropriation each fiscal year from the health 
357.20 	care access fund.
357.21 	Interpreter services quality initiative.
357.22 	$25,000 is appropriated from the state 
357.23 	government special revenue fund for fiscal 
357.24 	year 2009 to the commissioner of health to 
357.25 	establish a roster and develop a plan for the 
357.26 	registry of health care interpreter services.
357.27 	MERC Federal Compliance. Effective 
357.28 	for fiscal years beginning on or after July 
357.29 	1, 2009, the general fund appropriation of 
357.30 	$2,000,000 each fiscal year to the Mayo 
357.31 	Clinic for the purpose of providing transition 
357.32 	funding while federal compliance changes 
357.33 	are made to the medical education and 
357.34 	research cost funding distribution formula is 
358.1 	eliminated and is replaced by a $2,000,000 
358.2 	appropriation each fiscal year from the health 
358.3 	care access fund.

358.4 	ARTICLE 25
358.5 	HEALTH AND HUMAN SERVICES FORECAST CHANGES

358.6
358.7	Section 1. SUMMARY OF APPROPRIATIONS; DEPARTMENT OF HUMAN 
SERVICES FORECAST ADJUSTMENT.
 	
358.8 	The dollar amounts shown are added to or, if shown in parentheses, are subtracted 
358.9 	from the appropriations in Laws 2007, chapter 147, from the general fund, or any other 
358.10 	fund named, to the Department of Human Services for the purposes specified in this 
358.11 	article, to be available for the fiscal year indicated for each purpose. The figure "2008" 
358.12 	used in this article means that the appropriation or appropriations listed are available for 
358.13 	the fiscal year ending June 30, 2008. The figure "2009" used in this article means that the 
358.14 	appropriation or appropriations listed are available for the fiscal year ending June 30, 2009.

358.15					2008
		2009
	
358.16	General
			$
	6,739,000
	$
	52,350,000
	
358.17	Health Care Access
				(84,156,000)
		(96,019,000)
	
358.18	Federal TANF
				(28,427,000)
		(7,441,000)
	
358.19	Total
			$
	 (105,844,000)
	$
	(51,110,000)

358.20
358.21	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

358.22	Subdivision 1.Total Appropriation
 	$
	(105,844,000)
	$
	(51,110,000)

358.23	Appropriations by Fund
	
358.24		2008
	2009
	
358.25	General
	6,739,000
	52,350,000
	
358.26	Health Care Access
	(84,156,000)
	(96,019,000)
	
358.27	Federal TANF
	(28,427,000)
	(7,441,000)

358.28	Subd. 2.Revenue and Pass-Through

358.29	Federal TANF
	1,187,000
	1,507,000

358.30
358.31	Subd. 3.Children and Economic Assistance 
Grants

358.32	General
	(4,960,000)
	5,925,000
	
358.33	Federal TANF
	(29,614,000)
	(8,948,000)
	
358.34 	The amounts that may be spent from this 
358.35 	appropriation for each purpose are as follows:

359.1	(a) MFIP/DWP Grants

359.2	Appropriations by Fund
	
359.3	General
	25,139,000
	11,665,000
	
359.4	Federal TANF
	(29,614,000)
	(8,948,000)

359.5	(b) MFIP Child Care Assistance Grants
		(26,141,000)
		(10,710,000)

359.6	(c) General Assistance Grants
		2,529,000
		6,033,000

359.7	(d) Minnesota Supplemental Aid Grants
		299,000
		500,000

359.8	(e) Group Residential Housing Grants
		(6,786,000)
		(1,563,000)

359.9	Subd. 4.Basic Health Care Grants

359.10	General
	30,075,000
	48,389,000
	
359.11	Health Care Access
	(84,156,000)
	(96,019,000)
	
359.12 	The amounts that may be spent from this 
359.13 	appropriation for each purpose are as follows:

359.14	(a) MinnesotaCare

359.15	Health Care Access
	(84,156,000)
	(96,019,000)

359.16
359.17	(b) MA Basic Health Care - Families and 
Children
		13,525,000
		7,005,000

359.18
359.19	(c) MA Basic Health Care - Elderly and 
Disabled
		(2,292,000)
		5,479,000

359.20	(d) General Assistance Medical Care
		18,842,000
		35,905,000

359.21	Subd. 5.Continuing Care Grants
 		(18,376,000)
		(1,964,000)
	
359.22 	The amounts that may be spent from this 
359.23 	appropriation for each purpose are as follows:

359.24	(a) MA Long-Term Care Facilities
		(10,986,000)
		(2,148,000)

359.25	(b) MA Long-Term Care Waivers
		(18,484,000)
		(13,598,000)

359.26	(c) Chemical Dependency Entitlement Grants
		11,094,000
		13,782,000

359.27 	ARTICLE 26
359.28 	RESERVE ACCOUNTS AND MISCELLANEOUS

359.29 	Section 1. BUDGET RESERVE REDUCTION.
 360.1 	On July 1, 2008, the commissioner of finance shall reduce the budget reserve 
360.2 	account in Minnesota Statutes, section 16A.152, to $403,000,000.

360.3 	Sec. 2. CASH FLOW ACCOUNT REDUCTION.
 360.4 	On July 1, 2008, the commissioner of finance shall reduce the cash flow account  in 
360.5 	Minnesota Statutes, section 16A.152, to $0.

360.6 	Sec. 3. MINNESOTA FUTURE RESOURCES FUND.
 360.7 	By June 30, 2008, the commissioner of finance shall transfer any remaining 
360.8 	unappropriated balance from the Minnesota future resources fund to the general fund.

360.9 	Sec. 4. DUPLICATE APPROPRIATIONS.
 360.10 	Unless another act explicitly provides otherwise, appropriations and transfers made 
360.11 	in this act and other acts must be implemented only once even if the provision or a similar 
360.12 	provision with the same fiscal effect in the same fiscal year is included in another act. This 
360.13 	section applies to laws enacted in the 2008 regular session.

360.14 	ARTICLE 27
360.15 	SEVERABLE PROVISIONS

360.16 	Section 1. SEVERABLE PROVISIONS.
 360.17 	If any provision of this act is found to be unconstitutional, the remaining provisions 
360.18 	of this act remain valid.