1.1 	A bill for an act
1.2 	relating to the financing of state government; making supplemental 
1.3 	appropriations and reductions in appropriations for early childhood through 
1.4 	grade 12 education, higher education, environment and natural resources, 
1.5 	energy, agriculture, veterans affairs, military affairs, economic development, 
1.6 	transportation, public safety, judiciary, state government, and health and 
1.7 	human services; modifying certain statutory provisions and laws; providing for 
1.8 	certain programs; fixing and limiting fees; authorizing rulemaking; requiring 
1.9 	reports; appropriating money;amending Minnesota Statutes 2006, sections 
1.10 	15.06, subdivision 8; 16B.03; 43A.03, subdivision 3; 43A.08, subdivision 1; 
1.11 	45.013; 84.01, subdivision 3; 97A.045, subdivision 11; 103A.43; 103G.271, 
1.12 	subdivision 6; 115A.908, subdivisions 1, 2; 116.03, subdivision 1; 116J.01, 
1.13 	subdivision 5; 116J.035, subdivision 4; 116J.423, by adding a subdivision; 
1.14 	116J.8731, subdivision 4; 116L.04, subdivision 1; 116L.05, subdivisions 3, 5; 
1.15 	116L.16; 116L.20, subdivision 2; 116U.26; 120B.31, as amended; 120B.35, as 
1.16 	amended; 120B.36, as amended; 120B.362; 121A.19; 122A.21; 122A.415, by 
1.17 	adding subdivisions; 122A.72, by adding a subdivision; 123B.62; 124D.04, 
1.18 	subdivisions 6, 8, 9; 124D.05, by adding a subdivision; 124D.09, subdivision 
1.19 	5; 124D.095, subdivision 10; 124D.118, subdivision 4; 125A.76, by adding a 
1.20 	subdivision; 126C.10, subdivisions 1, 29, 31, 32, 35, 36, by adding a subdivision; 
1.21 	126C.17, subdivisions 6, 9; 126C.40, subdivision 1; 126C.45; 126C.51; 126C.52, 
1.22 	subdivision 2, by adding a subdivision; 126C.53; 126C.55; 127A.45, subdivision 
1.23 	16; 136A.101, subdivision 8; 136A.121, subdivision 5; 136F.60, subdivision 5; 
1.24 	136F.98, subdivision 1; 168.1255, by adding a subdivision; 174.02, subdivision 2; 
1.25 	190.19, subdivision 1, by adding a subdivision; 190.25, subdivision 3, by adding 
1.26 	a subdivision; 192.501, by adding a subdivision; 241.01, subdivision 2; 253B.18, 
1.27 	subdivisions 4c, 5, 5a; 253B.185, by adding a subdivision; 253B.19, subdivisions 
1.28 	2, 3; 256.741, subdivisions 2, 2a, 3; 256.969, subdivision 2b; 256B.0571, 
1.29 	subdivisions 8, 9; 256B.0621, subdivisions 2, 6, 10; 256B.0625, subdivisions 
1.30 	3c, 13e; 256B.0924, subdivisions 4, 6; 256B.19, subdivision 1d; 256B.431, 
1.31 	subdivision 23; 256B.69, subdivisions 5a, 6; 256B.75; 256D.44, subdivisions 
1.32 	2, 5; 256J.24, subdivision 5; 256J.425, subdivision 1; 256J.521, subdivision 4; 
1.33 	256J.54, subdivisions 2, 5; 256J.545; 298.2214, subdivisions 1, 2, as amended; 
1.34 	298.223, subdivision 2; 298.292, subdivision 2, as amended; 298.2961, 
1.35 	subdivision 2; 299A.45, subdivision 1; 357.021, subdivisions 6, 7; 446A.12, 
1.36 	subdivision 1; 462A.209, subdivision 7; 462A.21, by adding a subdivision; 
1.37 	462A.22, subdivision 1; 518A.50; 518A.53, subdivision 5; 626.5572, subdivision 
1.38 	21; Minnesota Statutes 2007 Supplement, sections 35.244; 80A.28, subdivision 
1.39 	1; 116J.575, subdivision 1a; 116L.17, subdivision 1; 120B.30, subdivision 1a; 
2.1 	123B.143, subdivision 1; 123B.54; 124D.095, subdivisions 3, 4, 7; 124D.531, 
2.2 	subdivision 1; 126C.10, subdivision 34; 127A.49, subdivisions 2, 3; 136A.101, 
2.3 	subdivision 5a; 136A.121, subdivision 7a; 136A.128, by adding a subdivision; 
2.4 	144E.45, subdivision 2; 190.19, subdivision 2; 245.4682, subdivision 3; 256.01, 
2.5 	subdivision 2; 256.741, subdivision 1; 256B.0625, subdivision 20; 256B.0631, 
2.6 	subdivisions 1, 3; 256B.5012, subdivision 7; 256J.20, subdivision 3; 256J.49, 
2.7 	subdivision 13; 256J.621; 256J.626, subdivisions 3, 7; 256J.95, subdivision 3; 
2.8 	297I.06, subdivision 3; 298.227; 446A.072, subdivisions 3, 5a; 446A.086; Laws 
2.9 	1997, chapter 21, section 1; Laws 1998, chapter 404, section 23, subdivision 6, 
2.10 	as amended; Laws 1999, chapter 223, article 2, section 72; Laws 2006, chapter 
2.11 	258, section 21, subdivision 14; Laws 2006, chapter 282, article 11, section 2, 
2.12 	subdivision 6; article 20, section 37, as amended; Laws 2007, chapter 54, article 
2.13 	1, section 11; Laws 2007, chapter 57, article 1, section 4, subdivision 4; Laws 
2.14 	2007, chapter 135, article 1, section 3, subdivision 2; Laws 2007, chapter 144, 
2.15 	article 1, sections 3, subdivisions 2, 13, 18; 5, subdivision 2; Laws 2007, chapter 
2.16 	146, article 1, section 24, subdivisions 2, 3, 4, 5, 6, 7, 8; article 2, section 46, 
2.17 	subdivisions 2, 3, 4, 6, 9, 11, 13, 19, 20; article 3, sections 23, subdivision 2; 
2.18 	24, subdivisions 3, 4, 9; article 4, section 16, subdivisions 2, 3, 6, 8; article 5, 
2.19 	sections 11, subdivision 1; 13, subdivisions 2, 3, 4; article 7, section 4; article 
2.20 	9, section 17, subdivisions 2, 3, 4, 8, 9, 13; Laws 2007, chapter 147, article 
2.21 	7, section 71; article 19, sections 3, subdivision 4; 4, subdivision 3; 5; Laws 
2.22 	2007, First Special Session chapter 2, article 1, section 11, subdivisions 1, 2, 6; 
2.23 	proposing coding for new law in Minnesota Statutes, chapters 13B; 17; 35; 43A; 
2.24 	94; 97A; 103B; 116J; 120B; 123B; 124D; 173; 181; 192; 246B; 256B; 446A; 
2.25 	462A; 480; repealing Minnesota Statutes 2006, sections 126C.10, subdivisions 
2.26 	35, 36; 126C.21, subdivision 1; 127A.45, subdivision 7a; 240A.08; 256.741, 
2.27 	subdivision 15; 256J.24, subdivision 6; 609.103; Minnesota Statutes 2007 
2.28 	Supplement, sections 126C.10, subdivision 34; 136A.127; Laws 2007, First 
2.29 	Special Session chapter 2, article 1, section 11, subdivisions 3, 4.
2.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.31 	ARTICLE 1
2.32 	SUMMARY

2.33	Section 1. GENERAL FUND SUMMARY.
 	
2.34 	The amounts shown in this section summarize general fund direct appropriations, 
2.35 	and transfers in from other funds, made in this article.

2.36			2008
		2009
		Total
	
2.37	E-12 Education
	$
	(1,315,000)
	$
	171,000
	$
	(1,144,000)
	
2.38	Higher Education
		(5,000,000)
		(17,801,000)
		(22,801,000)
	
2.39
2.40	Environment and Natural 
Resources
		(200,000)
		(2,850,000
)		(3,050,000)
	
2.41	Energy
		(2,800,000)
		(1,300,000)
		(4,100,000)
	
2.42	Agriculture
		472,000
		5,490,000
		5,962,000
	
2.43	Veterans Affairs
		(5,200,000)
		(625,000)
		(5,825,000)
	
2.44	Military Affairs
				375,000
		375,000
	
2.45	Economic Development
		500,000
		(2,908,000)
		(2,408,000)
	
2.46	Transportation
		(325,000)
		(28,000)
		(353,000)
	
2.47	Public Safety
		360,000
		(10,523,000)
		(10,163,000)
	
2.48	Judiciary
				(5,840,000)
		(5,840,000)
	
3.1	State Government
				(12,398,000)
		(12,398,000)
	
3.2	Health and Human Services
		(33,304,000)
		(155,632,000)
		(188,936,000)
	
3.3	Subtotal of Appropriations
		(46,812,000)
		(203,869,000)
		(250,681,000)
	
3.4	Transfers In
		8,994,000
		60,070,000
		69,064,000
	
3.5	Total
	$
	(55,806,000)
	$
	(263,939,000)
	$
	(319,745,000)

3.6 	ARTICLE 2
3.7 	GENERAL EDUCATION

3.8 	Section 1. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1, 
3.9 	is amended to read:
3.10 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
3.11 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
3.12 	school board. The authority for selection and employment of a superintendent must be 
3.13 	vested in the board in all cases. An individual employed by a board as a superintendent 
3.14 	shall have an initial employment contract for a period of time no longer than three years 
3.15 	from the date of employment. Any subsequent employment contract must not exceed a 
3.16 	period of three years. A board, at its discretion, may or may not renew an employment 
3.17 	contract. A board must not, by action or inaction, extend the duration of an existing 
3.18 	employment contract. Beginning 365 days prior to the expiration date of an existing 
3.19 	employment contract, a board may negotiate and enter into a subsequent employment 
3.20 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
3.21 	must be contingent upon the employee completing the terms of an existing contract. If a 
3.22 	contract between a board and a superintendent is terminated prior to the date specified in 
3.23 	the contract, the board may not enter into another superintendent contract with that same 
3.24 	individual that has a term that extends beyond the date specified in the terminated contract. 
3.25 	A board may terminate a superintendent during the term of an employment contract for any 
3.26 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
3.27 	not rely upon an employment contract with a board to assert any other continuing contract 
3.28 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
3.29 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
3.30 	to the contrary, no individual shall have a right to employment as a superintendent based 
3.31 	on order of employment in any district. If two or more districts enter into an agreement for 
3.32 	the purchase or sharing of the services of a superintendent, the contracting districts have 
3.33 	the absolute right to select one of the individuals employed to serve as superintendent 
3.34 	in one of the contracting districts and no individual has a right to employment as the 
4.1 	superintendent to provide all or part of the services based on order of employment in a 
4.2 	contracting district. The superintendent of a district shall perform the following: 
4.3 	(1) visit and supervise the schools in the district, report and make recommendations 
4.4 	about their condition when advisable or on request by the board;
4.5 	(2) recommend to the board employment and dismissal of teachers;
4.6 	(3) superintend school grading practices and examinations for promotions;
4.7 	(4) make reports required by the commissioner;
4.8 	(5) by January August 10, 2009, and each year thereafter, submit an annual report 
4.9 	to the commissioner in a manner prescribed by the commissioner, in consultation with 
4.10 	school districts, identifying the expenditures that the district requires to ensure an 80 
4.11 	percent student passage rate on the MCA-IIs taken in the eighth grade, identifying the 
4.12 	highest student passage rate the district expects it will be able to attain on the MCA-IIs
4.13 	GRAD by grade 12, and the amount of expenditures that the district requires to attain the 
4.14 	targeted student passage rate; and
4.15 	(6) perform other duties prescribed by the board.

4.16 	Sec. 2. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:
4.17 		Subd. 6.Tuition payments. (a) In each odd-numbered year, before March 1, the 
4.18 	commissioner must agree to rates of tuition for Minnesota elementary and secondary 
4.19 	pupils attending in other states for the next two fiscal years when the other state agrees to 
4.20 	negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the 
4.21 	designated authority in each state for pupils who reside in an adjoining state and enroll in 
4.22 	a Minnesota district. The rates must be at least equal to the tuition specified in section 
4.23 	124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate, 
4.24 	a Minnesota school district may negotiate a tuition rate with the school district in the other 
4.25 	state that sends a pupil to or receives a pupil from the Minnesota school district. The 
4.26 	tuition rate for a pupil with a disability must be equal to the actual cost of instruction and 
4.27 	services provided. The resident district of a Minnesota pupil attending in another state 
4.28 	under this section must pay the amount of tuition agreed upon in this section to the district 
4.29 	of attendance, prorated on the basis of the proportion of the school year attended. 
4.30 	(b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached 
4.31 	between the state of Minnesota and an adjoining state pursuant to section 124D.041, 
4.32 	the provisions of section 124D.041 and the agreement shall apply to all enrollment 
4.33 	transfers between Minnesota and the adjoining state, and provisions of paragraph (a) 
4.34 	and subdivision 9 shall not apply.

5.1 	Sec. 3. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:
5.2 		Subd. 8.Effective if reciprocal. This section is effective with respect to South 
5.3 	Dakota upon enactment of provisions by South Dakota that the commissioner determines 
5.4 	are essentially similar to the provisions for Minnesota pupils in this section. This section 
5.5 	is effective with respect to any other bordering state upon enactment of provisions by the 
5.6 	bordering state that the commissioner determines are essentially similar to the provisions 
5.7 	for Minnesota pupils in this section.

5.8 	Sec. 4. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:
5.9 		Subd. 9.Appeal to the commissioner. If a Minnesota school district cannot agree 
5.10 	with an adjoining state on a tuition rate for a Minnesota student attending school in that 
5.11 	state and that state has met the requirements in subdivision 8, then the student's parent or 
5.12 	guardian may request that the commissioner agree on set a tuition rate for the student. The 
5.13 	Minnesota district must pay the amount of tuition the commissioner agrees upon sets.

5.14 	Sec. 5. [124D.041] RECIPROCITY WITH ADJOINING STATES.
5.15 		Subdivision 1.Agreements. (a) The commissioner may enter into an agreement 
5.16 	with the designated authority from an adjoining state to establish an enrollment options 
5.17 	program between Minnesota and the adjoining state. Any agreement entered into pursuant 
5.18 	to this section must specify the following:
5.19 	(1) for students who are not residents of Minnesota, the enrollment options program 
5.20 	applies only to a student whose resident school district borders Minnesota;
5.21 	(2) the commissioner must negotiate equal, reciprocal rates with the designated 
5.22 	authority from the adjoining state;
5.23 	(3) if the adjoining state sends more students to Minnesota than Minnesota sends to 
5.24 	the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed 
5.25 	upon under clause (2) for the excess number of students sent to Minnesota;
5.26 	(4) if Minnesota sends more students to the adjoining state than the adjoining state 
5.27 	sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed 
5.28 	upon under clause (2) for the excess number of students sent to the adjoining state;
5.29 	(5) the application procedures for the enrollment options program between 
5.30 	Minnesota and the adjoining state;
5.31 	(6) the reasons for which an application for the enrollment options program between 
5.32 	Minnesota and the adjoining may be denied; and
5.33 	(7) that a Minnesota school district is not responsible for transportation for any 
5.34 	resident student attending school in an adjoining state under the provisions of this section. 
6.1 	A Minnesota school district may, at its discretion, provide transportation services for 
6.2 	such a student.
6.3 	(b) Any agreement entered into pursuant to this section may specify additional terms 
6.4 	relating to any student in need of special education and related services pursuant to chapter 
6.5 	125A. Any additional terms must apply equally to both states.
6.6 		Subd. 2.Pupil accounting. (a) Any student from an adjoining state enrolled in 
6.7 	Minnesota pursuant to this section is included in the receiving school district's average 
6.8 	daily membership and pupil units according to section 126C.05 as if the student were 
6.9 	a resident of another Minnesota school district attending the receiving school district 
6.10 	under section 124D.03.
6.11 	(b) Any Minnesota resident student enrolled in an adjoining state pursuant to this 
6.12 	section is included in the resident school district's average daily membership and pupil 
6.13 	units according to section 126C.05 as if the student were a resident of the district attending 
6.14 	another Minnesota school district under section 124D.03.
6.15 		Subd. 3.Procedures. (a) The Department of Education must establish procedures 
6.16 	relating to the application process, the collection or payment of funds under the provisions 
6.17 	of any agreement established pursuant to this section, and the collection of data necessary 
6.18 	to implement any agreement established pursuant to this section.
6.19 	(b) Notwithstanding sections 124A.04 and 124A.05, if an agreement is established 
6.20 	between Minnesota and an adjoining state pursuant to this section, the provisions of this 
6.21 	section and the agreement shall apply to all enrollment transfers between Minnesota and 
6.22 	the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary, 
6.23 	including provisions relating to tuition payments, shall not apply.
6.24 	(c) Notwithstanding paragraph (a), any payments to adjoining states under this 
6.25 	section shall be made according to section 127A.45, subdivision 16.
6.26 	(d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b), 
6.27 	and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not 
6.28 	apply to:
6.29 	(1) enrollment transfers between Minnesota and a school district in an adjoining 
6.30 	state enrolling fewer than 150 pupils that is exempted from participation in the program 
6.31 	under the laws of the adjoining state; or 
6.32 	(2) enrollment transfers between Minnesota and a school district in an adjoining 
6.33 	state under a board agreement initiated in fiscal year 2009 to serve students in grade 
6.34 	levels discontinued by the resident district.

7.1 	Sec. 6. Minnesota Statutes 2006, section 124D.05, is amended by adding a subdivision 
7.2 	to read:
7.3 		Subd. 2a.Exception. Notwithstanding subdivisions 1 and 2, if an agreement 
7.4 	is reached between the state of Minnesota and an adjoining state pursuant to section 
7.5 	124D.041, the provisions of section 124D.041 and the agreement shall apply to all 
7.6 	enrollment transfers between Minnesota and the adjoining state, and provisions of 
7.7 	subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments, 
7.8 	shall not apply.

7.9 	Sec. 7. Minnesota Statutes 2006, section 125A.76, is amended by adding a subdivision 
7.10 	to read:
7.11 		Subd. 4a.Adjustments for tuition reciprocity with adjoining states. (a) If an 
7.12 	agreement is reached between the state of Minnesota and an adjoining state pursuant to 
7.13 	section 124D.041 that requires a special education tuition payment from the state of 
7.14 	Minnesota to the adjoining state, the tuition payment shall be made from the special 
7.15 	education aid appropriation for that year, and the state total special education aid under 
7.16 	subdivision 4 shall be reduced by the amount of the payment.
7.17 	(b) If an agreement is reached between the state of Minnesota and an adjoining state 
7.18 	pursuant to section 124D.041 that requires a special education tuition payment from 
7.19 	an adjoining state to the state of Minnesota, the special education aid appropriation for 
7.20 	that year and the state total special education aid under subdivision 4 shall be increased 
7.21 	by the amount of the payment.
7.22 	(c) If an agreement is reached between the state of Minnesota and an adjoining state 
7.23 	pursuant to section 124D.041 that requires special education tuition payments to be made 
7.24 	between the two states and not between districts in the two states, the special education aid 
7.25 	for a Minnesota school district serving a student with a disability from the adjoining state 
7.26 	shall be calculated according to section 127A.47, subdivision 7, except that no reduction 
7.27 	shall be made in the special education aid paid to the resident district.

7.28 	Sec. 8. Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:
7.29 		Subdivision 1.General education revenue. (a) For fiscal year 2006 and later years 
7.30 	2008 and 2009, the general education revenue for each district equals the sum of the 
7.31 	district's basic revenue, extended time revenue, gifted and talented revenue, basic skills 
7.32 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
7.33 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
7.34 	alternative teacher compensation revenue under section 122A.415, and transition revenue.
8.1 	(b) For fiscal year 2010 and later, the general education revenue for each district 
8.2 	equals the sum of the district's basic revenue, extended time revenue, gifted and talented 
8.3 	revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue, 
8.4 	elementary sparsity revenue, transportation sparsity revenue, total operating capital 
8.5 	revenue, equity revenue, and transition revenue.

8.6 	Sec. 9. Minnesota Statutes 2006, section 126C.10, subdivision 29, is amended to read:
8.7 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 and later, 
8.8 	a district may levy an amount not more than the product of its equity revenue for the 
8.9 	fiscal year times the lesser of one or the ratio of its referendum market value per resident 
8.10 	marginal cost pupil unit to $476,000 the equalizing factor. The equalizing factor for fiscal 
8.11 	years 2008 and 2009 is $476,000. The equalizing factor for fiscal year 2010 is $487,950. 
8.12 	The equalizing factor for fiscal year 2011 and later is $489,115.

8.13 	Sec. 10. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
8.14 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
8.15 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
8.16 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
8.17 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
8.18 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
8.19 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
8.20 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
8.21 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
8.22 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
8.23 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
8.24 	(b) A district's transition revenue for fiscal year years 2006 and later through 2009
8.25 	equals the sum of the product of the district's transition allowance times the district's 
8.26 	adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue 
8.27 	under subdivision 31a.
8.28 	(c) A district's transition revenue for fiscal year 2010 and later equals the sum of 
8.29 	the product of the district's transition allowance times the district's adjusted marginal cost 
8.30 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a 
8.31 	plus the district's transition for tuition reciprocity revenue under subdivision 31c.
8.32 	(d) Notwithstanding paragraph (b), for fiscal year 2010 and later, the transition 
8.33 	revenue for Independent School District No. 356, Lancaster, equals the sum of the product 
9.1 	of the district's transition allowance plus $361 times the district's adjusted marginal cost 
9.2 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.

9.3 	Sec. 11. Minnesota Statutes 2006, section 126C.10, is amended by adding a subdivision 
9.4 	to read:
9.5 		Subd. 31c.Transition for tuition reciprocity revenue. For the first year that a 
9.6 	tuition reciprocity agreement with an adjoining state is in effect under section 124D.041 
9.7 	and later, a school district's transition for tuition reciprocity revenue equals the greater of 
9.8 	zero or the difference between the sum of the general education revenue and net tuition 
9.9 	revenue the district would have received for pupils enrolled under section 124D.041 for 
9.10 	the first year the agreement is in effect if the agreement had not been in effect, and the 
9.11 	sum of the district's general education revenue and net tuition revenue for the first year 
9.12 	the agreement is in effect.

9.13 	Sec. 12. Minnesota Statutes 2006, section 126C.10, subdivision 32, is amended to read:
9.14 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005 and 
9.15 	later, a district may levy an amount not more than the product of its transition revenue 
9.16 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
9.17 	resident marginal cost pupil unit to $476,000  the equalizing factor. The equalizing factor 
9.18 	for fiscal years 2008 and 2009 is $476,000. The equalizing factor for fiscal year 2010 is 
9.19 	$487,950. The equalizing factor for fiscal year 2011 and later is $489,115.

9.20 	Sec. 13. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, 
9.21 	is amended to read:
9.22 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 
9.23 	2007 and later 2008 and 2009, the basic alternative teacher compensation aid for a 
9.24 	school district with a plan approved under section 122A.414, subdivision 2b, equals 65
9.25 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
9.26 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
9.27 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
9.28 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
9.29 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
9.30 	year for a charter school in the first year of operation, times the ratio of the sum of the 
9.31 	alternative teacher compensation aid and alternative teacher compensation levy for all 
9.32 	participating school districts to the maximum alternative teacher compensation revenue 
9.33 	for those districts under section 122A.415, subdivision 1.
10.1 	(b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, 
10.2 	the state total basic alternative teacher compensation aid entitlement must not exceed 
10.3 	$75,636,000$48,060,000 for fiscal year 2007 2008, and later $52,407,000 for fiscal year 
10.4 	2009. The commissioner must limit the amount of alternative teacher compensation aid 
10.5 	approved under section 122A.415 so as not to exceed these limits.

10.6 	Sec. 14. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:
10.7 		Subd. 35.Alternative teacher compensation levy. For fiscal year 2007 and later
10.8 	years 2008 and 2009, the alternative teacher compensation levy for a district receiving 
10.9 	basic alternative teacher compensation aid equals the product of (1) the difference between 
10.10 	the district's alternative teacher compensation revenue and the district's basic alternative 
10.11 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
10.12 	net tax capacity per adjusted pupil unit to $5,913.

10.13 	Sec. 15. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:
10.14 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal year 2007 and later
10.15 	years 2008 and 2009, a district's alternative teacher compensation equalization aid equals 
10.16 	the district's alternative teacher compensation revenue minus the district's basic alternative 
10.17 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
10.18 	district does not levy the entire amount permitted, the alternative teacher compensation 
10.19 	equalization aid must be reduced in proportion to the actual amount levied.
10.20 	(b) A district's alternative teacher compensation aid equals the sum of the 
10.21 	district's basic alternative teacher compensation aid and the district's alternative teacher 
10.22 	compensation equalization aid.

10.23 	Sec. 16. Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read:
10.24 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later, 
10.25 	a district's referendum equalization levy equals the sum of the first tier referendum 
10.26 	equalization levy and the second tier referendum equalization levy.
10.27 	(b) A district's first tier referendum equalization levy equals the district's first tier 
10.28 	referendum equalization revenue times the lesser of one or the ratio of the district's 
10.29 	referendum market value per resident marginal cost pupil unit to $476,000  the first 
10.30 	tier equalizing factor. The first tier equalizing factor for fiscal years 2008 and 2009 is 
10.31 	$476,000. The first tier equalizing factor for fiscal year 2010 is $487,950. The first tier 
10.32 	equalizing factor for fiscal year 2011 and later is $489,115.
11.1 	(c) A district's second tier referendum equalization levy equals the district's second 
11.2 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
11.3 	referendum market value per resident marginal cost pupil unit to $270,000.

11.4 	Sec. 17. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
11.5 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
11.6 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
11.7 	referendum called for the purpose. The referendum may be called by the board or shall be 
11.8 	called by the board upon written petition of qualified voters of the district. The referendum 
11.9 	must be conducted one or two calendar years before the increased levy authority, if 
11.10 	approved, first becomes payable. Only one election to approve an increase may be held 
11.11 	in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 
11.12 	referendum must be held on the first Tuesday after the first Monday in November. The 
11.13 	ballot must state the maximum amount of the increased revenue per resident marginal cost 
11.14 	pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 
11.15 	per resident marginal cost pupil unit that differs from year to year over the number of 
11.16 	years for which the increased revenue is authorized or may state that the amount shall 
11.17 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be 
11.18 	the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot 
11.19 	may state that existing referendum levy authority is expiring. In this case, the ballot may 
11.20 	also compare the proposed levy authority to the existing expiring levy authority, and 
11.21 	express the proposed increase as the amount, if any, over the expiring referendum levy 
11.22 	authority. The ballot must designate the specific number of years, not to exceed ten, for 
11.23 	which the referendum authorization applies. The ballot, including a ballot on the question 
11.24 	to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate 
11.25 	the term "per resident marginal cost pupil unit" as "per pupil." The notice required under 
11.26 	section 275.60 may be modified to read, in cases of renewing existing levies at the same 
11.27 	amount per pupil as in the previous year:
11.28 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
11.29 	FOR A PROPERTY TAX INCREASE ARE VOTING TO EXTEND AN EXISTING 
11.30 	PROPERTY TAX REFERENDUM THAT IS SCHEDULED TO EXPIRE."
11.31 	The ballot may contain a textual portion with the information required in this 
11.32 	subdivision and a question stating substantially the following:
11.33 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
11.34 	School District No. .., be approved?"
12.1 	If approved, an amount equal to the approved revenue per resident marginal cost 
12.2 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
12.3 	the year after the levy is certified shall be authorized for certification for the number of 
12.4 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
12.5 	subsequent referendum.
12.6 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
12.7 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
12.8 	and the proposed revenue increase. The board need not mail more than one notice to any 
12.9 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
12.10 	those shown to be owners on the records of the county auditor or, in any county where 
12.11 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
12.12 	Every property owner whose name does not appear on the records of the county auditor 
12.13 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
12.14 	has requested in writing that the county auditor or county treasurer, as the case may be, 
12.15 	include the name on the records for this purpose. The notice must project the anticipated 
12.16 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
12.17 	homesteads, apartments, and commercial-industrial property within the school district.
12.18 	The notice for a referendum may state that an existing referendum levy is expiring 
12.19 	and project the anticipated amount of increase over the existing referendum levy in 
12.20 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
12.21 	homesteads, apartments, and commercial-industrial property within the district.
12.22 	The notice must include the following statement: "Passage of this referendum will 
12.23 	result in an increase in your property taxes." However, in cases of renewing existing 
12.24 	levies, the notice may include the following statement: "Passage of this referendum may
12.25 	result in an increase in your property taxes."extends an existing operating referendum at 
12.26 	the same amount per pupil as in the previous year."
12.27 	(c) A referendum on the question of revoking or reducing the increased revenue 
12.28 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
12.29 	by the board upon the written petition of qualified voters of the district. A referendum to 
12.30 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
12.31 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
12.32 	voters of the district pursuant to paragraph (a) must be available to the school district at 
12.33 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
12.34 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
12.35 	referendum revenue for any specific year and for years thereafter.
13.1 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
13.2 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
13.3 	the petition is filed with the board. A referendum invoked by petition must be held on the 
13.4 	date specified in paragraph (a).
13.5 	(e) The approval of 50 percent plus one of those voting on the question is required to 
13.6 	pass a referendum authorized by this subdivision.
13.7 	(f) At least 15 days before the day of the referendum, the district must submit a 
13.8 	copy of the notice required under paragraph (b) to the commissioner and to the county 
13.9 	auditor of each county in which the district is located. Within 15 days after the results 
13.10 	of the referendum have been certified by the board, or in the case of a recount, the 
13.11 	certification of the results of the recount by the canvassing board, the district must notify 
13.12 	the commissioner of the results of the referendum.

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

13.15 	Sec. 18. Minnesota Statutes 2006, section 126C.40, subdivision 1, is amended to read:
13.16 		Subdivision 1.To lease building or land. (a) When an independent or a special 
13.17 	school district or a group of independent or special school districts finds it economically 
13.18 	advantageous to rent or lease a building or land for any instructional purposes or for 
13.19 	school storage or furniture repair, and it determines that the operating capital revenue 
13.20 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
13.21 	apply to the commissioner for permission to make an additional capital expenditure levy 
13.22 	for this purpose. An application for permission to levy under this subdivision must contain 
13.23 	financial justification for the proposed levy, the terms and conditions of the proposed 
13.24 	lease, and a description of the space to be leased and its proposed use.
13.25 	(b) The criteria for approval of applications to levy under this subdivision must 
13.26 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
13.27 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
13.28 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
13.29 	the proposed lease to the space needs and the financial condition of the district. The 
13.30 	commissioner must not authorize a levy under this subdivision in an amount greater than 
13.31 	the cost to the district of renting or leasing a building or land for approved purposes. 
13.32 	The proceeds of this levy must not be used for custodial or other maintenance services. 
13.33 	A district may not levy under this subdivision for the purpose of leasing or renting a 
13.34 	district-owned building or site to itself.
14.1 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
14.2 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
14.3 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
14.4 	building addition or additions used primarily for regular kindergarten, elementary, or 
14.5 	secondary instruction that contains more than 20 percent of the square footage of the 
14.6 	previously existing building.
14.7 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
14.8 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
14.9 	is needed by the district to make payments required by a lease purchase agreement, 
14.10 	installment purchase agreement, or other deferred payments agreement authorized by law, 
14.11 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
14.12 	the commissioner under this paragraph may be in the amount needed by the district to 
14.13 	make payments required by a lease purchase agreement, installment purchase agreement, 
14.14 	or other deferred payments agreement authorized by law, provided that any agreement 
14.15 	include a provision giving the school districts the right to terminate the agreement 
14.16 	annually without penalty.
14.17 	(e) The total levy under this subdivision for a district for any year must not exceed 
14.18 	$100$150 times the resident pupil units for the fiscal year to which the levy is attributable.
14.19 	(f) For agreements for which a review and comment have been submitted to the 
14.20 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
14.21 	this subdivision excludes expenditures on stadiums.
14.22 	(g) The commissioner of education may authorize a school district to exceed the 
14.23 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
14.24 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
14.25 	for not more than five years if the district meets the following criteria:
14.26 	(1) the school district has been experiencing pupil enrollment growth in the 
14.27 	preceding five years;
14.28 	(2) the purpose of the increased levy is in the long-term public interest;
14.29 	(3) the purpose of the increased levy promotes colocation of government services; 
14.30 	and
14.31 	(4) the purpose of the increased levy is in the long-term interest of the district by 
14.32 	avoiding over construction of school facilities.
14.33 	(h) A school district that is a member of an intermediate school district may include 
14.34 	in its authority under this section the costs associated with leases of administrative and 
14.35 	classroom space for intermediate school district programs. This authority must not 
15.1 	exceed $25$43  times the adjusted marginal cost pupil units of the member districts. This 
15.2 	authority is in addition to any other authority authorized under this section.
15.3 	(i) In addition to the allowable capital levies in paragraph (a), a district that is a 
15.4 	member of the "Technology and Information Education Systems" data processing joint 
15.5 	board, that finds it economically advantageous to enter into a lease purchase agreement for 
15.6 	a building for a group of school districts or special school districts for staff development 
15.7 	purposes, may levy for its portion of lease costs attributed to the district within the total 
15.8 	levy limit in paragraph (e).

15.9 	Sec. 19. Minnesota Statutes 2006, section 126C.51, is amended to read:
15.10 	126C.51 APPLICATION OF LIMITING TAX LEGISLATION.
15.11 	Notwithstanding the provisions of section 471.69 or 471.75, or of any other 
15.12 	provision of law which by per capita limitation, local tax rate limitation, or otherwise, 
15.13 	limits the power of a district to incur any debt or to issue any warrant or order, a school 
15.14 	district or intermediate school district has the powers in sections 126C.50 to 126C.56
15.15 	specifically conferred upon it and all powers incident and necessary to carrying out the 
15.16 	purposes of sections 126C.50 to 126C.56. 

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

15.18 	Sec. 20. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:
15.19 		Subd. 2.Limitations. The board of any school district may also borrow money 
15.20 	in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in 
15.21 	anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of 
15.22 	federal school aids to be distributed by or through the department. The aggregate of such 
15.23 	borrowings under this subdivision shall never exceed 75 percent of such aids which are 
15.24 	receivable by said school district in the schoolfiscal year (from July 1 to June 30) in which 
15.25 	the money is borrowed, as estimated and certified by the commissioner. 

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

15.27 	Sec. 21. Minnesota Statutes 2006, section 126C.52, is amended by adding a 
15.28 	subdivision to read:
15.29 		Subd. 3.Intermediate school districts. (a) The board of an intermediate school 
15.30 	district may borrow money in the manner and subject to the limitations set forth in 
15.31 	sections 126C.50 to 126C.56 in anticipation of the receipt of:
15.32 	(1) state aids for schools as defined in Minnesota Statutes;
16.1 	(2) federal school aids to be distributed by or through the department; and
16.2 	(3) membership fees and tuition payments from its member school districts.
16.3 	The aggregate of such borrowings under this subdivision shall never exceed 75 
16.4 	percent of such aids, fees, and tuition payments which are receivable by the intermediate 
16.5 	school district in the fiscal year in which the money is borrowed, as estimated and certified 
16.6 	by the commissioner.
16.7 	(b) The board of an intermediate school district may, upon receipt of a written 
16.8 	resolution by each of its member school districts, pledge the member district's full faith 
16.9 	and credit and unlimited taxing powers to repay each member district's pro rata share of 
16.10 	any certificates issued or the amount paid by the state under section 126C.55, subdivision 
16.11 	2, plus interest, if the revenues specified in paragraph (a) and any other revenues of the 
16.12 	intermediate school district are insufficient to do so.

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

16.14 	Sec. 22. Minnesota Statutes 2006, section 126C.53, is amended to read:
16.15 	126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF 
16.16 	INDEBTEDNESS.
16.17 	The board of a school district or intermediate school district may authorize and 
16.18 	effect such borrowing, and may issue such certificates of indebtedness upon passage of 
16.19 	a resolution specifying the amount and purposes for which it deems such borrowing is 
16.20 	necessary. The resolution must be adopted by a vote of at least two-thirds of its members. 
16.21 	The board must fix the amount, date, maturity, form, denomination, and other details of 
16.22 	the certificates of indebtedness, not inconsistent with this chapter. The board must fix the 
16.23 	date and place for receipt of bids for the purchase of the certificates when bids are required 
16.24 	and direct the clerk to give notice of the date and place for bidding.

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

16.26 	Sec. 23. Minnesota Statutes 2006, section 126C.55, is amended to read:
16.27 	126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL 
16.28 	DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.
16.29 		Subdivision 1.Definitions. For the purposes of this section, the term "debt 
16.30 	obligation" means:
16.31 	(1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;
16.32 	(2) a certificate of participation issued under section 126C.40, subdivision 6; or 
16.33 	(3) a general obligation bond.
17.1 		Subd. 2.Notifications; payment; appropriation. (a) If a school district or 
17.2 	intermediate school district believes that it may be unable to make a principal or interest 
17.3 	payment on any outstanding debt obligation on the date that payment is due, it must 
17.4 	notify the commissioner as soon as possible, but not less than 15 working days before the 
17.5 	date that principal or interest payment is due. The notice must include the name of the 
17.6 	district, an identification of the debt obligation issue in question, the date the payment is 
17.7 	due, the amount of principal and interest due on the payment date, the amount of principal 
17.8 	or interest that the district will be unable to repay on that date, the paying agent for the 
17.9 	debt obligation, the wire transfer instructions to transfer funds to that paying agent, and an 
17.10 	indication as to whether a payment is being requested by the district under this section. 
17.11 	If a paying agent becomes aware of a potential default, it shall inform the commissioner 
17.12 	of that fact. After receipt of a notice which requests a payment under this section, after 
17.13 	consultation with the district and the paying agent, and after verification of the accuracy of 
17.14 	the information provided, the commissioner shall notify the commissioner of finance of 
17.15 	the potential default. The notice must include a final figure as to the amount due that the 
17.16 	district will be unable to repay on the date due.
17.17 	(b) Except as provided in subdivision 9, upon receipt of this notice from the 
17.18 	commissioner, the commissioner of finance shall issue a warrant and authorize the 
17.19 	commissioner of education to pay to the paying agent for the debt obligation the specified 
17.20 	amount on or before the date due. The amounts needed for the purposes of this subdivision 
17.21 	are annually appropriated to the department from the state general fund.
17.22 	(c) The Departments of Education and Finance must jointly develop detailed 
17.23 	procedures for school districts and intermediate school districts to notify the state that they 
17.24 	have obligated themselves to be bound by the provisions of this section, procedures for 
17.25 	districts and paying agents to notify the state of potential defaults and to request state 
17.26 	payment under this section, and procedures for the state to expedite payments to prevent 
17.27 	defaults. The procedures are not subject to chapter 14.
17.28 		Subd. 3.School district bound; interest rate on state paid amount. If, at the 
17.29 	request of a school district or intermediate school district, the state has paid part or all of 
17.30 	the principal or interest due on a district's debt obligation on a specific date, the school 
17.31 	district or intermediate school district is bound by all provisions of this section and the 
17.32 	amount paid shall bear taxable interest from the date paid until the date of repayment at 
17.33 	the invested cash rate as it is certified by the commissioner of finance. Interest shall only 
17.34 	accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4 
17.35 	and other payments received from the district.
18.1 		Subd. 4.Pledge of district's full faith and credit. If, at the request of a school 
18.2 	district or intermediate school district, the state has paid part or all of the principal or 
18.3 	interest due on a district's debt obligation on a specific date, the pledge of the full faith 
18.4 	and credit and unlimited taxing powers of the school district or the member districts of 
18.5 	the intermediate district to repay the principal and interest due on those debt obligations 
18.6 	shall also, without an election or the requirement of a further authorization, become a 
18.7 	pledge of the full faith and credit and unlimited taxing powers of the school district or 
18.8 	the member districts of the intermediate district to repay to the state the amount paid, 
18.9 	with interest. Amounts paid by the state must be repaid in the order in which the state 
18.10 	payments were made.
18.11 		Subd. 4a.Aid reduction for repayment. (a) Except as provided in this subdivision, 
18.12 	the state must reduce the state aid payable to the school district or intermediate school 
18.13 	district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273 
18.14 	by the amount paid by the state under this section on behalf of the district, plus the interest 
18.15 	due on it, and the amount reduced must revert from the appropriate account to the state 
18.16 	general fund. Payments from the school district endowment fund or any federal aid 
18.17 	payments shall not be reduced.
18.18 	(b) For an intermediate school district, the state aid payable to the intermediate 
18.19 	school district must first be reduced, before any reduction is made to the state aids payable 
18.20 	to the member districts. If the state aid payable to the intermediate school district is 
18.21 	not sufficient to repay the state, state aid payable to member districts may be reduced 
18.22 	proportionately based on the ratio of each member district's adjusted net tax capacity to 
18.23 	the total adjusted net tax capacity of all member districts.
18.24 	(c) If, after review of the financial situation of the school district or intermediate 
18.25 	school district, the commissioner advises the commissioner of finance that a total reduction 
18.26 	of aids would cause an undue hardship on or an undue disruption of the educational 
18.27 	program of the district, the commissioner, with the approval of the commissioner of 
18.28 	finance, may establish a different schedule for reduction of aids to repay the state. The 
18.29 	amount of aids to be reduced is decreased by any amounts repaid to the state by the district 
18.30 	from other revenue sources.
18.31 		Subd. 6.Tax levy for repayment. (a) With the approval of the commissioner, a 
18.32 	district may levy in the year the state makes a payment under this section an amount up to 
18.33 	the amount necessary to provide funds for the repayment of the amount paid by the state 
18.34 	plus interest through the date of estimated repayment by the district. The proceeds of this 
18.35 	levy may be used only for this purpose unless they are in excess of the amount actually 
18.36 	due, in which case the excess shall be used to repay other state payments made under this 
19.1 	section or shall be deposited in the debt redemption fund of the school district. This levy 
19.2 	shall be an increase in the levy limits of the district for purposes of section 275.065, 
19.3 	subdivision 6. The amount of aids to be reduced to repay the state shall be decreased by 
19.4 	the amount levied. This levy by the district is not eligible for debt service equalization 
19.5 	under section 123B.53. 
19.6 	(b) If the state is not repaid in full for a payment made under this section by 
19.7 	November 30 of the calendar year following the year in which the state makes the 
19.8 	payment, the commissioner shall require the district to certify a property tax levy in an 
19.9 	amount up to the amount necessary to provide funds for repayment of the amount paid by 
19.10 	the state plus interest through the date of estimated repayment by the school district. To 
19.11 	prevent undue hardship, the commissioner may allow the district to certify the levy over a 
19.12 	five-year period. The proceeds of the levy may be used only for this purpose unless they 
19.13 	are in excess of the amount actually due, in which case the excess shall be used to repay 
19.14 	other state payments made under this section or shall be deposited in the debt redemption 
19.15 	fund of the district. This levy shall be an increase in the levy limits of the school district 
19.16 	for purposes of section 275.065, subdivision 6. If the commissioner orders the district 
19.17 	to levy, the amount of aids reduced to repay the state shall be decreased by the amount 
19.18 	levied. This levy by the district is not eligible for debt service equalization under section 
19.19 	123B.53 or any successor provision. A levy under this subdivision must be explained as a 
19.20 	specific increase at the meeting required under section 275.065, subdivision 6. 
19.21 	(c) For an intermediate district, a levy made by a member district under paragraph (a) 
19.22 	or (b) to pay its pro rata share must be spread by the commissioner as a tax rate based on 
19.23 	the total adjusted net tax capacity of the member school districts. The proceeds of the levy 
19.24 	must be remitted by the member school district to the intermediate school district and must 
19.25 	be used by the intermediate district only to repay the state amounts owed. Any amount in 
19.26 	excess of the amount owed to the state must be repaid to the member school districts and 
19.27 	the commissioner shall adjust each member district's property tax levy in the next year.
19.28 		Subd. 7.Election as to mandatory application. A school district or intermediate 
19.29 	school district may covenant and obligate itself, prior to the issuance of an issue of debt 
19.30 	obligations, to notify the commissioner of a potential default and to use the provisions of 
19.31 	this section to guarantee payment of the principal and interest on those debt obligations 
19.32 	when due. If the district obligates itself to be bound by this section, it must covenant in the 
19.33 	resolution that authorizes the issuance of the debt obligations to deposit with the paying 
19.34 	agent three business days prior to the date on which a payment is due an amount sufficient 
19.35 	to make that payment or to notify the commissioner under subdivision 1 that it will be 
19.36 	unable to make all or a portion of that payment. A district that has obligated itself must 
20.1 	include a provision in its agreement with the paying agent for that issue that requires 
20.2 	the paying agent to inform the commissioner if it becomes aware of a potential default 
20.3 	in the payment of principal or interest on that issue or if, on the day two business days 
20.4 	prior to the date a payment is due on that issue, there are insufficient funds to make the 
20.5 	payment on deposit with the paying agent. Funds invested in a refunding escrow account 
20.6 	established under section 475.67 that are to become available to the paying agent on a 
20.7 	principal or interest payment date are deemed to be on deposit with the paying agent three 
20.8 	business days before the payment date. If a district either covenants to be bound by this 
20.9 	section or accepts state payments under this section to prevent a default of a particular 
20.10 	issue of debt obligations, the provisions of this section shall be binding as to that issue 
20.11 	as long as any debt obligation of that issue remain outstanding. If the provisions of this 
20.12 	section are or become binding for more than one issue of debt obligations and a district is 
20.13 	unable to make payments on one or more of those issues, the district must continue to 
20.14 	make payments on the remaining issues. 
20.15 		Subd. 8.Mandatory plan; technical assistance. If the state makes payments on 
20.16 	behalf of a school district or intermediate school district under this section or the district 
20.17 	defaults in the payment of principal or interest on an outstanding debt obligation, it must 
20.18 	submit a plan to the commissioner for approval specifying the measures it intends to 
20.19 	implement to resolve the issues which led to its inability to make the payment and to 
20.20 	prevent further defaults. The department must provide technical assistance to the district 
20.21 	in preparing its plan. If the commissioner determines that a district's plan is not adequate, 
20.22 	the commissioner shall notify the district that the plan has been disapproved, the reasons 
20.23 	for the disapproval, and that the state shall not make future payments under this section for 
20.24 	debt obligations issued after the date specified in that notice until its plan is approved. The 
20.25 	commissioner may also notify the district that until its plan is approved, other aids due the 
20.26 	district will be withheld after a date specified in the notice.
20.27 		Subd. 9.State bond rating. If the commissioner of finance determines that the 
20.28 	credit rating of the state would be adversely affected thereby, the commissioner of finance 
20.29 	shall not issue warrants under subdivision 2 for the payment of principal or interest on any 
20.30 	debt obligations for which a district did not, prior to their issuance, obligate itself to be 
20.31 	bound by the provisions of this section.
20.32 		Subd. 10.Continuing disclosure agreements. The commissioner of finance 
20.33 	may enter into written agreements or contracts relating to the continuing disclosure of 
20.34 	information needed to facilitate the ability of school districts to issue debt obligations 
20.35 	according to federal securities laws, rules, and regulations, including securities and 
20.36 	exchange commission rules and regulations, section 240.15c2-12. Such agreements or 
21.1 	contracts may be in any form the commissioner of finance deems reasonable and in the 
21.2 	state's best interests.

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

21.4 	Sec. 24. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:
21.5 		Subd. 16.Payments to third parties. Notwithstanding subdivision 3, the current 
21.6 	year aid payment percentage of the amounts under section 123A.26, subdivision 3 and 
21.7 	section 124D.041, shall be paid in equal installments on August 30, December 30, and 
21.8 	March 30, with a final adjustment payment on October 30 of the next fiscal year of the 
21.9 	remaining amount.

21.10 	Sec. 25. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is 
21.11 	amended to read:
21.12 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
21.13 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
21.14 	any taxable year is changed after the taxes for that year have been spread by the county 
21.15 	auditor and the local tax rate as determined by the county auditor based upon the original 
21.16 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
21.17 	prior to February 1 of each year, certify to the commissioner of education the amount of 
21.18 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
21.19 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
21.20 	calculated according to the provisions of this subdivision. This amount shall be deducted 
21.21 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
21.22 	adjustment must be the product of:
21.23 	(1) the net revenue loss as certified by the county auditor, times
21.24 	(2) the ratio of:
21.25 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
21.26 	according to the following:
21.27 	(A) section 123B.57, if the district received health and safety aid according to that 
21.28 	section for the second preceding year;
21.29 	(B) section 124D.20, if the district received aid for community education programs 
21.30 	according to that section for the second preceding year;
21.31 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
21.32 	education aid according to section 124D.135 for the second preceding year; 
21.33 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
21.34 	aid according to that section for the second preceding year; 
22.1 	(E) section 126C.13, if the district received general education aid according to 
22.2 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
22.3 	preceding year;
22.4 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
22.5 	according to section 126C.10, subdivision 13b, in the second preceding year;
22.6 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
22.7 	to section 126C.10, subdivision 30, in the second preceding year;
22.8 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
22.9 	according to section 126C.10, subdivision 33, in the second preceding year;
22.10 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
22.11 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
22.12 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
22.13 	according to section 124D.22, subdivision 4, in the second preceding year;
22.14 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
22.15 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
22.16 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
22.17 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
22.18 	(a), in the second preceding year; to
22.19 	(ii) the total amount of the district's certified levy in the third preceding December, 
22.20 	plus or minus auditor's adjustments.

22.21 	Sec. 26. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is 
22.22 	amended to read:
22.23 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
22.24 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
22.25 	decertification of a tax increment district, the school district's aid and levy limitations 
22.26 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
22.27 	provisions of this subdivision.
22.28 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
22.29 	equal to the product of:
22.30 	(1) the amount of the payment of excess tax increment to the district, times
22.31 	(2) the ratio of:
22.32 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
22.33 	the excess tax increment is paid according to the following:
22.34 	(A) section 123B.57, if the district received health and safety aid according to that 
22.35 	section for the second preceding year;
23.1 	(B) section 124D.20, if the district received aid for community education programs 
23.2 	according to that section for the second preceding year;
23.3 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
23.4 	education aid according to section 124D.135 for the second preceding year; 
23.5 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
23.6 	aid according to that section for the second preceding year; 
23.7 	(E) section 126C.13, if the district received general education aid according to 
23.8 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
23.9 	preceding year;
23.10 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
23.11 	according to section 126C.10, subdivision 13b, in the second preceding year;
23.12 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
23.13 	to section 126C.10, subdivision 30, in the second preceding year;
23.14 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
23.15 	according to section 126C.10, subdivision 33, in the second preceding year;
23.16 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
23.17 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
23.18 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
23.19 	according to section 124D.22, subdivision 4, in the second preceding year;
23.20 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
23.21 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
23.22 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
23.23 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
23.24 	(a), in the second preceding year; to
23.25 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
23.26 	auditor's adjustments.
23.27 	(c) An amount must be subtracted from the school district's levy limitation for the 
23.28 	next levy certified equal to the difference between:
23.29 	(1) the amount of the distribution of excess increment; and
23.30 	(2) the amount subtracted from aid pursuant to clause (a).
23.31 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
23.32 	for the fiscal year specified or to the levy specified, the reductions must be made from 
23.33 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
23.34 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
23.35 	this subdivision.
24.1 	(d) This subdivision applies only to the total amount of excess increments received 
24.2 	by a district for a calendar year that exceeds $25,000.

24.3 	Sec. 27. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to 
24.4 	read:
24.5 		Subd. 2. General education aid. For general education aid under Minnesota 
24.6 	Statutes, section 126C.13, subdivision 4:

24.7
24.8		$ 
	5,618,342,000
5,600,647,000
	..... 
	2008 
	
24.924.10
		$ 
	5,618,342,000
5,650,587,000
	..... 
	2009 
	
24.11 	The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and 
24.12 	$5,073,250,000 $5,064,396,000 for 2008.
24.13 	The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and 
24.14 	$5,072,028,000$5,106,835,000 for 2009.

24.15 	Sec. 28. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
24.16 	1, is amended to read:

24.17	Subdivision 1. Total Appropriation
 			$ 
	584,000 148,000
	
24.18 	The appropriations in this section are from 
24.19 	the general fund. The amounts that may be 
24.20 	spent for each purpose are specified in the 
24.21 	following subdivisions. 

24.22 	Sec. 29. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
24.23 	2, is amended to read:

24.24
24.25	Subd. 2. Independent School District No. 239, 
Rushford-Peterson

24.26	(a) Flood Enrollment Impact Aid
 				89,000 
	
24.27 	The commissioner of education shall pay to 
24.28 	the school district flood enrollment impact 
24.29 	aid equal to $5,394 times the number of 
24.30 	pupils lost as a result of the floods of August 
24.31 	2007. The district must provide to the 
24.32 	commissioner of education documentation 
25.1 	of the number of pupils in average daily 
25.2 	membership lost as a result of the flood. 

25.3	(b) Disaster Relief Facilities Grant
 				250,000
	
25.4 	For facilities cleanup, repair, and replacement 
25.5 	costs related to the floods of August 2007 not 
25.6 	covered by the district's insurance settlement 
25.7 	or through Federal Emergency Management 
25.8 	Agency payments. The commissioner of 
25.9 	education may request the school district 
25.10 	to provide necessary information before 
25.11 	awarding a grant. 

25.12	(c)Pupil Transportation Aid
 				40,000 
	
25.13 	For increased costs associated with 
25.14 	transporting students as a result of the floods 
25.15 	of August 2007. 

25.16 	Sec. 30. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
25.17 	6, is amended to read:

25.18
25.19	Subd. 6. Disaster Relief Facilities Grants to 
Other Districts
 				90,00014,000
	
25.20 	For facilities cleanup, repair, and replacement 
25.21 	costs related to the floods of August 2007 not 
25.22 	covered by the district's insurance settlement 
25.23 	or through Federal Emergency Management 
25.24 	Agency payments. The commissioner of 
25.25 	education may request the school district 
25.26 	to provide necessary information before 
25.27 	awarding a grant. School districts not 
25.28 	included in subdivisions 2 to 5 must be given 
25.29 	priority in the allocation of this appropriation.

25.30 	Sec. 31. ENROLLMENT AND TRANSPORTATION AID.
 25.31 	For fiscal year 2010 only, Independent School District No. 239, Rushford-Peterson, 
25.32 	is eligible for school district flood enrollment aid and aid for increased transportation costs 
26.1 	equal to $158,000 as a result of the floods of August 2007. Of this amount, $40,000 is 
26.2 	for increased costs associated with transporting students.

26.3 	Sec. 32. LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL 
26.4 	DISTRICTS AND CHARTER SCHOOLS, FISCAL YEARS 2009 TO 2013.
 26.5 	Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415; 
26.6 	122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must 
26.7 	limit the participation in the alternative teacher pay program to those district sites and 
26.8 	charter schools that received alternative compensation revenue in fiscal year 2008 or those 
26.9 	district sites and charter schools that have submitted an application, under Minnesota 
26.10 	Statutes, section 122A.414, by February 28, 2008, for fiscal year 2009 alternative 
26.11 	compensation participation. This limitation applies to fiscal year 2009 to fiscal year 2013. 
26.12 	No additional district sites or charter schools may be approved until after June 30, 2013.

26.13 	Sec. 33. SPARSITY, ADJUSTMENT AID, LANCASTER.
 26.14 	For fiscal year 2009 only, Independent School District No. 356, Lancaster, is eligible 
26.15 	to receive sparsity adjustment aid equal to $82,000.

26.16 	Sec. 34. SPARSITY TRANSPORTATION LEVY.
26.17 	A school district that is eligible to receive elementary or secondary sparsity revenue, 
26.18 	under Minnesota Statutes, section 126C.10, subdivisions 7 and 8, may levy to pay for 
26.19 	transportation costs. The total amount of the levy must not exceed $80 times the adjusted 
26.20 	marginal cost pupil units in the district for the year in which the levy is certified. An 
26.21 	eligible school district must recognize this levy as revenue in fiscal year 2009.

26.22 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 only.

26.23 	Sec. 35. APPROPRIATIONS.
 26.24 		Subdivision 1.Department of Education. The sums indicated in this section are 
26.25 	appropriated from the general fund to the Department of Education for the fiscal years 
26.26 	designated.
26.27 		Subd. 2.Independent School District No. 239, Rushford-Peterson. For school 
26.28 	district flood enrollment impact aid as a result of the floods of August 2007.

26.29		$
	158,000
	.....
	2009
	
26.30 	The base appropriation for fiscal year 2010 is $158,000. The base appropriation for 
26.31 	later years is zero.
27.1 	The district must provide to the commissioner of education documentation of 
27.2 	the additional pupil transportation costs and the number of pupils in average daily 
27.3 	membership lost as a result of the flood.
27.4 	Up to $40,000 is for increased costs associated with transporting students as a result 
27.5 	of the floods of August 2007.
27.6 		Subd. 3. Independent School District No. 356, Lancaster. For sparsity adjustment 
27.7 	aid.

27.8		$
	82,000
	.....
	2009
	
27.9 	This is a onetime appropriation.

27.10 	Sec. 36.  REPEALER.
 27.11 	(a) Minnesota Statutes 2006, section 126C.21, subdivision 1, is repealed for revenue 
27.12 	for fiscal year 2009 and later.
27.13 	(b) Minnesota Statutes 2006, section 126C.10, subdivisions 35 and 36, are repealed 
27.14 	for revenue for fiscal year 2010 and later.
27.15 	(c) Minnesota Statutes 2006, section 127A.45, subdivision 7a, is repealed.
27.16 	(d) Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, is 
27.17 	repealed for revenue for fiscal year 2010 and later.
27.18 	(e) Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 3, 
27.19 	and 4, are repealed.

27.20 	ARTICLE 3
27.21 	EDUCATION EXCELLENCE

27.22 	Section 1. [120B.17] MINNESOTA VIRTUAL EDUCATION PROGRAM.
27.23 		Subdivision 1.Program. A state of Minnesota virtual education program is 
27.24 	established for teachers and students to improve and enhance teacher instruction and 
27.25 	student learning through integration of technology and online learning. The commissioner 
27.26 	of education shall establish the program and develop a selection of online courses for 
27.27 	students and lesson plans for teachers. The online student courses shall be established 
27.28 	for grades 6 through 12.
27.29 		Subd. 2.Scope and requirements. (a) The student courses and teacher lesson plans 
27.30 	shall be developed by department staff, content experts, licensed Minnesota teachers, 
27.31 	licensed administrators, and business representatives. The courses must be aligned to 
27.32 	the Minnesota academic standards established in Minnesota Rules, chapter 3501. The 
27.33 	commissioner of education, in working with qualified individuals, must establish at 
28.1 	least ten student courses and teacher lesson plans that will be available to students and 
28.2 	teachers no later than the 2009-2010 school year. The commissioner must give priority 
28.3 	in the development of courses and lesson plans to science, technology, engineering, 
28.4 	mathematics, and advanced courses. The courses available to students must be monitored 
28.5 	and delivered by licensed Minnesota teachers under section 122A.16
28.6 	(b) School districts and charter schools participating in the program must:
28.7 	(1) submit a letter of intent to the commissioner of education;
28.8 	(2) allow students to participate in the program;
28.9 	(3) train teachers to monitor and deliver courses;
28.10 	(4) allow students to receive graduation credit, if appropriate, for successful 
28.11 	completion of the courses;
28.12 	(5) issue grades to students enrolled in the online courses; and
28.13 	(6) report progress to the department on student participation and completion rates.
28.14 		Subd. 3.Report. The commissioner of education must submit a report to the chairs 
28.15 	of the house of representatives and senate education committees by October 1, 2010, 
28.16 	assessing the progress and development of the program.

28.17 	Sec. 2. [120B.299] DEFINITIONS.
28.18 		Subdivision 1.Definitions. The definitions in this section apply to this chapter.
28.19 		Subd. 2.Growth. "Growth" compares the difference between a student's 
28.20 	achievement score at two distinct points in time.
28.21 		Subd. 3.Value-added. "Value-added" is the amount of achievement a student 
28.22 	demonstrates above an established baseline.
28.23 		Subd. 4.Growth-based value-added. "Growth-based value-added" is a 
28.24 	value-added system of assessments that measures the difference between an established 
28.25 	baseline of growth and a student's growth over time.
28.26 		Subd. 5.Adequate yearly progress. Adequate yearly progress compares the 
28.27 	average achievement of two different groups of students at two different points in time. 
28.28 		Subd. 6.State growth norm. "State growth norm" is an established statewide 
28.29 	percentile, or standard applicable to all students in a particular grade benchmarked to an 
28.30 	established school year. Beginning in the 2008-2009 school year, the state growth norm 
28.31 	is benchmarked to 2006-2007 school year data until the commissioner next changes the 
28.32 	vertically linked scale score. Each time the commissioner changes the vertically linked 
28.33 	scale score, a recognized Minnesota assessment group composed of assessment and 
28.34 	evaluation directors and staff and researchers, under section 120B.299, subdivision 6, in 
28.35 	collaboration with the Independent Office of Educational Accountability under section 
29.1 	120B.31, subdivision 3, must recommend a new state growth norm that the commissioner 
29.2 	shall consider with the revised standards. For each newly established state growth 
29.3 	norm, the commissioner also must establish criteria for identifying schools and school 
29.4 	districts that demonstrate accelerated growth in order to advance educators' professional 
29.5 	development and to replicate programs that succeed in meeting students' diverse learning 
29.6 	needs.

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

29.8 	Sec. 3. Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 1a, is 
29.9 	amended to read:
29.10 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
29.11 	develop reading, mathematics, and science assessments aligned with state academic 
29.12 	standards that districts and sites must use to monitor student growth toward achieving 
29.13 	those standards. The commissioner must not develop statewide assessments for academic 
29.14 	standards in social studies, health and physical education, and the arts. The commissioner 
29.15 	must require:
29.16 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
29.17 	high school level for the 2005-2006 school year and later; and
29.18 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
29.19 	grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span 
29.20 	for the 2007-2008 school year and later.
29.21 	(b) The commissioner must ensure that all statewide tests administered to elementary 
29.22 	and secondary students measure students' academic knowledge and skills and not students' 
29.23 	values, attitudes, and beliefs.
29.24 	(c) Reporting of assessment results must:
29.25 	(1) provide timely, useful, and understandable information on the performance of 
29.26 	individual students, schools, school districts, and the state;
29.27 	(2) include, by no later than the 2008-2009 school year, a growth-based, value-added 
29.28 	component that is in addition to a measure for student achievement growth over time
29.29 	indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
29.30 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
29.31 	whether students have met the state's basic skills requirements; and
29.32 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
29.33 	whether students have met the state's academic standards.
29.34 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 
29.35 	(1), the commissioner must include appropriate, technically sound accommodations or 
30.1 	alternative assessments for the very few students with disabilities for whom statewide 
30.2 	assessments are inappropriate and for students with limited English proficiency.
30.3 	(e) A school, school district, and charter school must administer statewide 
30.4 	assessments under this section, as the assessments become available, to evaluate student 
30.5 	progress in achieving the proficiency in the context of the state's grade level academic 
30.6 	standards. If a state assessment is not available, a school, school district, and charter 
30.7 	school must determine locally if a student has met the required academic standards. A 
30.8 	school, school district, or charter school may use a student's performance on a statewide 
30.9 	assessment as one of multiple criteria to determine grade promotion or retention. A 
30.10 	school, school district, or charter school may use a high school student's performance on a 
30.11 	statewide assessment as a percentage of the student's final grade in a course, or place a 
30.12 	student's assessment score on the student's transcript.

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

30.14 	Sec. 4. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter 
30.15 	146, article 2, section 10, is amended to read:
30.16 	120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL 
30.17 	ADJUSTMENTS.
30.18 		Subdivision 1.Educational accountability and public reporting. Consistent 
30.19 	with the process direction to adopt a results-oriented graduation rule statewide academic 
30.20 	standards under section 120B.02, the department, in consultation with education and other 
30.21 	system stakeholders, must establish maintain a coordinated and comprehensive system of 
30.22 	educational accountability and public reporting that promotes higher greater academic 
30.23 	achievement, preparation for higher academic education, preparation for the world of 
30.24 	work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4); and 
30.25 	120B.024, paragraph (a), clause (4), and the arts. 
30.26 		Subd. 2.Statewide testing. Each school year, all school districts shall give a 
30.27 	uniform statewide test to students at specified grades to provide information on the status, 
30.28 	needs and performance of Minnesota students.
30.29 		Subd. 3.Educational accountability. (a) The Independent Office of Educational 
30.30 	Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 
30.31 	section 28, subdivision 2, is established, and shall be funded through the Board of Regents 
30.32 	of the University of Minnesota. The office shall advise the education committees of 
30.33 	the legislature and the commissioner of education, at least on a biennial basis, on the 
30.34 	degree to which the statewide educational accountability and reporting system includes a 
31.1 	comprehensive assessment framework that measures school accountability for students 
31.2 	achieving the goals described in the state's results-oriented high school graduation 
31.3 	rule. The office shall determine and annually report to the legislature whether and how 
31.4 	effectively: 
31.5 	(1) the statewide system of educational accountability utilizes uses multiple 
31.6 	indicators to provide valid and reliable comparative and contextual data on students, 
31.7 	schools, districts, and the state, and if not, recommend ways to improve the accountability 
31.8 	reporting system;
31.9 	(2) the commissioner makes statistical adjustments when reporting student data over 
31.10 	time, consistent with clause (4);
31.11 	(3) the commissioner uses indicators of student achievement growth a growth-based 
31.12 	value-added indicator of student achievement over time and a value-added assessment 
31.13 	model that estimates the effects of the school and school district on student achievement to 
31.14 	measure school performance, consistent with section 120B.36, subdivision 1 120B.35, 
31.15 	subdivision 3, paragraph (b);
31.16 	(4) (3) the commissioner makes data available on students who do not pass one or 
31.17 	more of the state's required GRAD tests and do not receive a diploma as a consequence, 
31.18 	and categorizes these data according to gender, race, eligibility for free or reduced lunch, 
31.19 	and English language proficiency; and
31.20 	(5) (4) the commissioner fulfills the requirements under section 127A.095, 
31.21 	subdivision 2.
31.22 	(b) When the office reviews the statewide educational accountability and reporting 
31.23 	system, it shall also consider:
31.24 	(1) the objectivity and neutrality of the state's educational accountability system; and
31.25 	(2) the impact of a testing program on school curriculum and student learning.
31.26 		Subd. 4.Statistical adjustments; student performance data. In developing 
31.27 	managing policies and assessment processes to hold schools and districts accountable 
31.28 	for high levels of academic standards under section 120B.021, the commissioner shall 
31.29 	aggregate student data over time to report student performance and growth levels 
31.30 	measured at the school, school district, regional,or and statewide level. When collecting 
31.31 	and reporting the performance data, the commissioner shall: (1) acknowledge the impact 
31.32 	of significant demographic factors such as residential instability, the number of single 
31.33 	parent families, parents' level of education, and parents' income level on school outcomes; 
31.34 	and (2) organize and report the data so that state and local policy makers can understand 
31.35 	the educational implications of changes in districts' demographic profiles over time. Any 
31.36 	report the commissioner disseminates containing summary data on student performance 
32.1 	must integrate student performance and the demographic factors that strongly correlate 
32.2 	with that performance.

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

32.4 	Sec. 5. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter 
32.5 	147, article 8, section 38, is amended to read:
32.6 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
32.7 	GROWTH.
32.8 		Subdivision 1.Adequate yearly progress of schools and students School and 
32.9 	student indicators of growth and achievement. The commissioner must develop 
32.10 	and implement maintain a system for measuring and reporting academic achievement 
32.11 	and individual student progress growth, consistent with the statewide educational 
32.12 	accountability and reporting system. The system components of the system must measure 
32.13 	the adequate yearly progress of schools and the growth of individual students: students' 
32.14 	current achievement in schools under subdivision 2; and individual students' educational 
32.15 	progress growth over time under subdivision 3. The system also must include statewide 
32.16 	measures of student academic achievement growth that identify schools with high levels 
32.17 	of achievement growth, and also schools with low levels of achievement growth that need 
32.18 	improvement. When determining a school's effect, the data must include both statewide 
32.19 	measures of student achievement and, to the extent annual tests are administered,
32.20 	indicators of achievement growth that take into account a student's prior achievement. 
32.21 	Indicators of achievement and prior achievement must be based on highly reliable 
32.22 	statewide or districtwide assessments. Indicators that take into account a student's prior 
32.23 	achievement must not be used to disregard a school's low achievement or to exclude 
32.24 	a school from a program to improve low achievement levels. The commissioner by 
32.25 	January 15, 2002, must submit a plan for integrating these components to the chairs of 
32.26 	the legislative committees having policy and budgetary responsibilities for elementary 
32.27 	and secondary education.
32.28 		Subd. 2.Expectations for federally mandated student academic achievement.
 32.29 	(a) Each school year, a school district must determine if the student achievement levels 
32.30 	at each school site meet state and local federally mandated expectations. If student 
32.31 	achievement levels at a school site do not meet state and local federally mandated
32.32 	expectations and the site has not made adequate yearly progress for two consecutive 
32.33 	school years, beginning with the 2001-2002 school year, the district must work with the 
32.34 	school site to adopt a plan to raise student achievement levels to meet state and local
33.1 	federally mandated expectations. The commissioner of education shall establish student 
33.2 	academic achievement levels to comply with this paragraph.
33.3 	(b) School sites identified as not meeting federally mandated expectations must 
33.4 	develop continuous improvement plans in order to meet state and local federally mandated
33.5 	expectations for student academic achievement. The department, at a district's request, 
33.6 	must assist the district and the school site in developing a plan to improve student 
33.7 	achievement. The plan must include parental involvement components.
33.8 	(c) The commissioner must:
33.9 	(1) provide assistance to assist school sites and districts identified as not meeting 
33.10 	federally mandated expectations; and
33.11 	(2) provide technical assistance to schools that integrate student progress measures 
33.12 	under subdivision 3 in the school continuous improvement plan.
33.13 	(d) The commissioner shall establish and maintain a continuous improvement Web 
33.14 	site designed to make data on every school and district available to parents, teachers, 
33.15 	administrators, community members, and the general public.
33.16 		Subd. 3.Student progress assessment growth; other state measures. (a) 
33.17 	The state's educational assessment system component measuring individual students' 
33.18 	educational progress must be growth is based, to the extent annual tests are administered,
33.19 	on indicators of achievement growth that show an individual student's prior achievement. 
33.20 	Indicators of achievement and prior achievement must be are based on highly reliable 
33.21 	statewide or districtwide assessments.
33.22 	(b) The commissioner must identify effective models for measuring individual 
33.23 	student progress that enable a school district or school site to perform gains-based 
33.24 	analysis, including evaluating the effects of the teacher, school, and school district on 
33.25 	student achievement over time. At least one model must be a "value-added" assessment 
33.26 	model that reliably estimates those effects for classroom settings where a single teacher 
33.27 	teaches multiple subjects to the same group of students, for team teaching arrangements, 
33.28 	and for other teaching circumstances. use a growth-based value-added system. The 
33.29 	commissioner must apply the state growth norm to students in grades 4 through 8 
33.30 	beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision 
33.31 	6, initially benchmarking the state growth norm to 2007-2008 school year data. The 
33.32 	model must allow the user to:
33.33 	(1) report student growth at and above the state norm; and
33.34 	(2) for all student categories with a cell size of at least 20, report and compare 
33.35 	aggregated and disaggregated state growth data using the nine student categories identified 
33.36 	under the federal 2001 No Child Left Behind Act and two student gender categories of 
34.1 	male and female, respectively. The model must have the ability to measure the effects on 
34.2 	student growth at the school level.
34.3 	(c) If a district has an accountability plan that includes gains-based analysis or 
34.4 	"value-added" assessment, the commissioner shall, to the extent practicable, incorporate 
34.5 	those measures in determining whether the district or school site meets expectations. The 
34.6 	department must coordinate with the district in evaluating school sites and continuous 
34.7 	improvement plans, consistent with best practices. If a district has an accountability 
34.8 	plan that includes other growth-based value-added analysis, the commissioner may, to 
34.9 	the extent practicable and consistent with this section, incorporate those measures in 
34.10 	determining whether the district or school site shows growth. When reporting student 
34.11 	performance under section 120B.36, subdivision 1, the commissioner annually, beginning 
34.12 	July 1, 2011, must report two core measures indicating the extent to which current high 
34.13 	school graduates are being prepared for postsecondary academic and career opportunities:
34.14 	(1) a preparation measure indicating the number and percentage of high school 
34.15 	graduates in the most recent school year who completed course work important to 
34.16 	preparing them for postsecondary academic and career opportunities, consistent with the 
34.17 	core academic subjects required for admission to Minnesota's public four-year colleges 
34.18 	and universities as determined by the Minnesota Office of Higher Education under chapter 
34.19 	136A; and
34.20 	(2) a rigorous coursework measure indicating the number and percentage of high 
34.21 	school graduates in the most recent school year who successfully completed one or more 
34.22 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
34.23 	options, other rigorous courses of study under section 120B.021, subdivision 1a, or 
34.24 	industry certification courses.
34.25 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
34.26 	analyze and report separate categories of information using the nine student categories 
34.27 	identified under the federal 2001 No Child Left Behind Act and two student gender 
34.28 	categories of male and female, respectively.
34.29 		Subd. 4.Improving schools. Consistent with the requirements of this section, the 
34.30 	commissioner of education must establish a second achievement benchmark to identify 
34.31 	improving schools. The commissioner must recommend to annually report to the public 
34.32 	and the legislature by February 15, 2002, indicators in addition to the achievement 
34.33 	benchmark for identifying improving schools, including an indicator requiring a school to 
34.34 	demonstrate ongoing successful use of best teaching practices best practices learned from 
34.35 	those schools that demonstrate accelerated growth compared to the state growth norm.
35.1 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
35.2 	disorders. (a) A district must develop strategies in conjunction with parents of students 
35.3 	with emotional or behavioral disorders and the county board responsible for implementing 
35.4 	sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in 
35.5 	school, when the district has a drop-out rate for students with an emotional or behavioral 
35.6 	disorder in grades 9 through 12 exceeding 25 percent. 
35.7 	(b) A district must develop a plan in conjunction with parents of students with 
35.8 	emotional or behavioral disorders and the local mental health authority to increase the 
35.9 	graduation rates of students with emotional or behavioral disorders. A district with a 
35.10 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
35.11 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
35.12 	to the commissioner.

35.13 	EFFECTIVE DATE. Subdivision 3, paragraph (b), applies to students in the 
35.14 	2009-2010 school year and later. Subdivision 3, paragraph (c), applies to students in the 
35.15 	2010-2011 school year and later. Subdivision 4 applies in the 2011-2012 school year 
35.16 	and later.

35.17 	Sec. 6. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter 
35.18 	146, article 2, section 11, is amended to read:
35.19 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
35.20 		Subdivision 1.School performance report cards. (a) The commissioner shall use 
35.21 	objective criteria based on levels of student performance to report at least student academic 
35.22 	performance under section 120B.35, subdivision 2, a table showing the percentages 
35.23 	of students at and above the state growth norm under section 120B.35, subdivision 3, 
35.24 	paragraph (b), school safety, rigorous coursework under section 120B.35, subdivision 3, 
35.25 	paragraph (c), two separate student-to-teacher ratios that clearly indicate the definition of 
35.26 	teacher consistent with sections 122A.06 and 122A.15 for purposes of determining these 
35.27 	ratios, and staff characteristics excluding salaries, with a value-added component added no 
35.28 	later than the 2008-2009 school year student enrollment demographics, district mobility, 
35.29 	and extracurricular activities. The report must indicate a school's adequate yearly progress 
35.30 	status, and must not set any designations applicable to high- and low-performing schools 
35.31 	due solely to adequate yearly progress status.
35.32 	(b) The commissioner shall develop, annually update, and post on the department 
35.33 	Web site school performance report cards. 
36.1 	(c) The commissioner must make available the first performance report cards by 
36.2 	November 2003, and during the beginning of each school year thereafter.
36.3 	(d) A school or district may appeal its adequate yearly progress status in writing to 
36.4 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
36.5 	decision to uphold or deny an appeal is final.
36.6 	(e) School performance report cards card data are nonpublic data under section 
36.7 	13.02, subdivision 9, until not later than ten days after the appeal procedure described in 
36.8 	paragraph (d) concludes. The department shall annually post school performance report 
36.9 	cards to its public Web site no later than September 1. 
36.10 		Subd. 2.Adequate yearly progress data. All data the department receives, 
36.11 	collects, or creates for purposes of determining to determine adequate yearly progress 
36.12 	designations status under Public Law 107-110, section 1116, set state growth norms, and 
36.13 	determine student growth are nonpublic data under section 13.02, subdivision 9, until not 
36.14 	later than ten days after the appeal procedure described in subdivision 1, paragraph (d), 
36.15 	concludes. Districts must provide parents sufficiently detailed summary data to permit 
36.16 	parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall 
36.17 	annually post federally mandated adequate yearly progress data and state student growth 
36.18 	data to its public Web site no later than September 1. 

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

36.20 	Sec. 7. Minnesota Statutes 2006, section 120B.362, is amended to read:
36.21 	120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.
36.22 	(a) The commissioner of education must implement a growth-based value-added 
36.23 	assessment program to assist school districts, public schools, and charter schools in 
36.24 	assessing and reporting individual students' growth in academic achievement under section 
36.25 	120B.30, subdivision 1a. The program must use assessments of individual students' 
36.26 	academic achievement to make longitudinal comparisons of each student's academic 
36.27 	growth over time. School districts, public schools, and charter schools may apply to the 
36.28 	commissioner to participate in the initial trial program using a form and in the manner the 
36.29 	commissioner prescribes. The commissioner must select program participants from urban, 
36.30 	suburban, and rural areas throughout the state.
36.31 	(b) The commissioner may issue a request for proposals to contract with an 
36.32 	organization that provides a value-added assessment model that reliably estimates school 
36.33 	and school district effects on students' academic achievement over time. The model the 
36.34 	commissioner selects must accommodate diverse data and must use each student's test 
37.1 	data across grades. Data on individual teachers generated under the model are personnel 
37.2 	data under section 13.43.
37.3 	(c) The contract under paragraph (b) must be consistent with the definition of "best 
37.4 	value" under section 16C.02, subdivision 4.

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

37.6 	Sec. 8. Minnesota Statutes 2006, section 122A.21, is amended to read:
37.7 	122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES; 
37.8 	LICENSURE VIA PORTFOLIO.
37.9 	(a) Each application for the issuance, renewal, or extension of a license to teach, 
37.10 	including candidates for licensure via portfolio under paragraph (b), must be accompanied 
37.11 	by a processing fee of $57. Each application for issuing, renewing, or extending the 
37.12 	license of a school administrator or supervisor must be accompanied by a processing fee 
37.13 	in the amount set by the Board of Teaching. The processing fee for a teacher's license and 
37.14 	for the licenses of supervisory personnel must be paid to the executive secretary of the 
37.15 	appropriate board. The executive secretary of the board shall deposit the fees with the 
37.16 	commissioner of finance. The fees as set by the board are nonrefundable for applicants not 
37.17 	qualifying for a license. However, a fee must be refunded by the commissioner of finance 
37.18 	in any case in which the applicant already holds a valid unexpired license. The board may 
37.19 	waive or reduce fees for applicants who apply at the same time for more than one license.
37.20 	(b) A qualified candidate may use licensure via portfolio to obtain an initial 
37.21 	licensure or to add a licensure field. A candidate for initial licensure must submit one 
37.22 	portfolio demonstrating pedagogical competence and one portfolio demonstrating 
37.23 	content competence consistent with the applicable Board of Teaching licensure rules. A 
37.24 	candidate seeking to add a licensure field must submit one portfolio demonstrating content 
37.25 	competence consistent with the Board of Teaching licensure rule. Candidates must 
37.26 	submit all portfolios to the Educator Licensing Division at the Minnesota Department of 
37.27 	Education. A candidate must pay a $500 fee for the first portfolio submitted for review and 
37.28 	a $250 fee for any portfolio submitted subsequently. The fees must be paid to the executive 
37.29 	secretary of the Board of Teaching. The revenue generated from the fee must be deposited 
37.30 	in an account in the state government special revenue fund. Money in the account, 
37.31 	including interest earned, is appropriated to the board for the operation of licensure via 
37.32 	portfolio. The fees as set by the board are nonrefundable for applicants not qualifying for 
37.33 	a license. The board may waive or reduce fees for candidates based on financial need.

38.1 	Sec. 9. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
38.2 	subdivision to read:
38.3 		Subd. 4.Basic alternative teacher compensation aid. (a) For fiscal year 2010 
38.4 	and later, the basic alternative teacher compensation aid for a school district with a plan 
38.5 	approved under section 122A.414, subdivision 2b, equals 65 percent of the alternative 
38.6 	teacher compensation revenue under subdivision 1. The basic alternative teacher 
38.7 	compensation aid for an intermediate school district or charter school with a plan approved 
38.8 	under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals 
38.9 	$260 times the number of pupils enrolled in the school on October 1 of the previous 
38.10 	fiscal year, or on October 1 of the current fiscal year for a charter school in the first year 
38.11 	of operation, times the ratio of the sum of the alternative teacher compensation aid and 
38.12 	alternative teacher compensation levy for all participating school districts to the maximum 
38.13 	alternative teacher compensation revenue for those districts under subdivision 1.
38.14 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
38.15 	teacher compensation aid entitlement must not exceed $46,781,000 for fiscal year 2010 
38.16 	and $46,538,000 for fiscal year 2011 and later. The commissioner must limit the amount 
38.17 	of alternative teacher compensation aid approved under this section so as not to exceed 
38.18 	these limits.

38.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
38.20 	and later.

38.21 	Sec. 10. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
38.22 	subdivision to read:
38.23 		Subd. 5.Alternative teacher compensation levy. For fiscal year 2010 and later, 
38.24 	the alternative teacher compensation levy for a district receiving basic alternative teacher 
38.25 	compensation aid equals the product of: (1) the difference between the district's alternative 
38.26 	teacher compensation revenue, under subdivision 1, and the district's basic alternative 
38.27 	teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of 
38.28 	the district's adjusted net tax capacity per adjusted pupil unit to $5,913.

38.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
38.30 	and later.

38.31 	Sec. 11. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
38.32 	subdivision to read:
39.1 		Subd. 6.Alternative teacher compensation aid. (a) For fiscal year 2010 and 
39.2 	later, a district's alternative teacher compensation equalization aid equals the district's 
39.3 	alternative teacher compensation revenue, minus the district's basic alternative teacher 
39.4 	compensation aid, minus the district's alternative teacher compensation levy. If a district 
39.5 	does not levy the entire amount permitted under subdivision 5, the alternative teacher 
39.6 	compensation equalization aid must be reduced in proportion to the actual amount levied.
39.7 	(b) A district's alternative teacher compensation aid equals the sum of the 
39.8 	district's basic alternative teacher compensation aid and the district's alternative teacher 
39.9 	compensation equalization aid.

39.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
39.11 	and later.

39.12 	Sec. 12. Minnesota Statutes 2006, section 122A.72, is amended by adding a 
39.13 	subdivision to read:
39.14 		Subd. 6.Teacher institute functions. A teacher institute shall perform functions 
39.15 	according to this subdivision. The teacher institute shall assist teachers in providing 
39.16 	advanced training during the summer months to licensed mathematics and science 
39.17 	teachers in the areas of content knowledge and effective instruction practices. The teacher 
39.18 	may be eligible for graduate-level credits upon successful completion of the institute. The 
39.19 	application process and criteria for admission to the teacher institute shall be established 
39.20 	by the commissioner of education.

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

39.23 	Sec. 13. [123B.881] REGIONAL PUPIL TRANSPORTATION SERVICES.
39.24 	Three or more contiguous school districts in Hennepin County may enter into a 
39.25 	cooperative agreement to provide pupil transportation services upon a majority vote of 
39.26 	the school board. School districts that choose to participate in a cooperative agreement 
39.27 	under this section must agree to jointly provide transportation services to all students 
39.28 	who attend school in the participating school districts. School districts that choose to 
39.29 	participate in a cooperative agreement under this section may jointly operate bus garages 
39.30 	and maintenance facilities. School districts that agree to enter a cooperative agreement 
39.31 	under this section must report to the legislature by January 15 on the third year after 
39.32 	the inception of the cooperative agreement. The report must analyze the cost savings 
39.33 	and operating efficiencies to the districts, as well as the impacts on school bus drivers, 
40.1 	school bus maintenance workers, clerical workers, administrative workers, and technical 
40.2 	workers assigned to school bus duties.

40.3 	Sec. 14. Minnesota Statutes 2006, section 124D.09, subdivision 5, is amended to read:
40.4 		Subd. 5.Authorization; notification. Notwithstanding any other law to the 
40.5 	contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled 
40.6 	tribal contract or grant school eligible for aid under section 124D.83, except a foreign 
40.7 	exchange pupil enrolled in a district under a cultural exchange program, may apply to an 
40.8 	eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by 
40.9 	that postsecondary institution. If an institution accepts a secondary pupil for enrollment 
40.10 	under this section, the institution shall send written notice to the pupil, the pupil's school 
40.11 	or school district, and the commissioner within ten days of acceptance. The notice must 
40.12 	indicate the course and hours of enrollment of that pupil. If the pupil enrolls in a course 
40.13 	for postsecondary credit only, the institution must notify the pupil about payment in the 
40.14 	customary manner used by the institution. 

40.15 	Sec. 15. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 3, 
40.16 	is amended to read:
40.17 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
40.18 	apply for full-time enrollment in an approved online learning program under section 
40.19 	124D.03, 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding 
40.20 	sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in supplemental online 
40.21 	learning shall be as provided in this subdivision. A student age 17 or younger must 
40.22 	have the written consent of a parent or guardian to apply. No school district or charter 
40.23 	school may prohibit a student from applying to enroll in online learning. In order that a 
40.24 	student may enroll in online learning, the student and the student's parents must submit an 
40.25 	application to the online learning provider and identify the reason for enrolling in online 
40.26 	learning. The online learning provider that accepts a student under this section must within 
40.27 	ten days notify the student and the enrolling district in writing if the enrolling district is 
40.28 	not the online learning provider. The student and family must notify the online learning 
40.29 	provider of their intent to enroll in online learning within ten days of acceptance, at which 
40.30 	time the student and parent must sign a statement of assurance that they have reviewed the 
40.31 	online course or program and understand the expectations of online learning enrollment. 
40.32 	The online learning provider must notify the enrolling district of the student's enrollment
40.33 	application to enroll in online learning in writing on a form provided by the department.
41.1 	(b) Supplemental online learning notification to the enrolling district upon student 
41.2 	enrollment in application to the online learning program provider will include the courses 
41.3 	or program, credits to be awarded, and the start date of online enrollment, and confirmation 
41.4 	that the courses will meet the student's graduation plan. An online learning provider 
41.5 	must make available to the enrolling district the course syllabus in a format established 
41.6 	by the commissioner that identifies the state standards met by the course, content 
41.7 	outline, assessment requirements, expectations for actual teacher contact time, other 
41.8 	student-to-teacher communication, and academic support for supplemental online courses 
41.9 	taken by students in the enrolling district. Within 15 days after the online learning provider 
41.10 	makes information in this paragraph available to the enrolling district, the enrolling district 
41.11 	must either confirm or deny to the online provider that the student, parent or guardian, and 
41.12 	enrolling district have agreed the courses meet the student's graduation requirements. An 
41.13 	online learning course or program that meets or exceeds a graduation standard or grade 
41.14 	progression requirements at the enrolling district as demonstrated on the online provider's 
41.15 	syllabus must be considered to meet the corresponding graduation requirements of the 
41.16 	student in the enrolling district. A student may enroll in supplemental online learning 
41.17 	courses up to the midpoint of the enrolling district's term. The enrolling district may waive 
41.18 	this requirement for special circumstances and upon acceptance by the online provider.
41.19 	 (c) An online learning provider must notify the commissioner that it is delivering 
41.20 	online learning and report the number of online learning students it is accepting and the 
41.21 	online learning courses and programs it is delivering.
41.22 	 (d) An online learning provider may limit enrollment if the provider's school board 
41.23 	or board of directors adopts by resolution specific standards for accepting and rejecting 
41.24 	students' applications.
41.25 	 (e) An enrolling district may reduce an online learning student's regular classroom 
41.26 	instructional membership in proportion to the student's membership in online learning 
41.27 	courses.
41.28 	(f) The online provider must report student progress to the student, parent or 
41.29 	guardian, and enrolling district in a manner specified by the commissioner unless 
41.30 	previously agreed upon by the enrolling district and the online provider. The enrolling 
41.31 	district must designate a contact person to assist in the facilitation and monitoring of 
41.32 	student progress. 

41.33 	Sec. 16. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 4, 
41.34 	is amended to read:
42.1 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
42.2 	academic credit for completing the requirements of an online learning course or program. 
42.3 	Secondary credits granted to an online learning student must be counted toward the 
42.4 	graduation and credit requirements of the enrolling district. An online learning provider 
42.5 	must make available to the enrolling district the course syllabus, standard alignment, 
42.6 	content outline, assessment requirements, and contact information for supplemental online 
42.7 	courses taken by students in the enrolling district. The enrolling district must apply the 
42.8 	same graduation requirements to all students, including online learning students, and 
42.9 	must continue to provide nonacademic services to online learning students. If a student 
42.10 	completes an online learning course or program that meets or exceeds a graduation 
42.11 	standard or grade progression requirement at the enrolling district, that standard or 
42.12 	requirement is met. The enrolling district must use the same criteria for accepting online 
42.13 	learning credits or courses as it does for accepting credits or courses for transfer students 
42.14 	under section 124D.03, subdivision 9. The enrolling district may reduce the course 
42.15 	schedule of an online learning student in proportion to the number of online learning 
42.16 	courses the student takes from an online learning provider that is not the enrolling district.
42.17 	(b) An online learning student may:
42.18 	(1) enroll in supplemental online learning courses during a single school year to a 
42.19 	maximum of 50 percent of the student's full schedule of courses per term. A student may 
42.20 	exceed the supplemental online learning registration limit if the enrolling district grants 
42.21 	permission for supplemental online learning enrollment above the limit, or if an agreement 
42.22 	is made between the enrolling district and the online learning provider for instructional 
42.23 	services;
42.24 	(2) complete course work at a grade level that is different from the student's current 
42.25 	grade level; and
42.26 	(3) enroll in additional courses with the online learning provider under a separate 
42.27 	agreement that includes terms for payment of any tuition or course fees.
42.28 	(c) An online learning student has the same access to the computer hardware and 
42.29 	education software available in a school as all other students in the enrolling district. An 
42.30 	online learning provider must assist an online learning student whose family qualifies 
42.31 	for the education tax credit under section 290.0674 to acquire computer hardware and 
42.32 	educational software for online learning purposes.
42.33 	(d) An enrolling district or charter school may offer online learning to its enrolled 
42.34 	students. Such online learning does not generate online learning funds under this section. 
42.35 	An enrolling district or charter school that offers online learning only to its enrolled 
42.36 	students is not subject to the reporting requirements or review criteria under subdivision 7, 
43.1 	unless the enrolling district or charter school is a full-time online provider. A teacher with 
43.2 	a Minnesota license must assemble and deliver instruction to enrolled students receiving 
43.3 	online learning from an enrolling district or charter school. The delivery of instruction 
43.4 	occurs when the student interacts with the computer or the teacher and receives ongoing 
43.5 	assistance and assessment of learning. The instruction may include curriculum developed 
43.6 	by persons other than a teacher with a Minnesota license.
43.7 	(e) AnBoth full-time and supplemental online learning provider that is not the 
43.8 	enrolling district is providers are subject to the reporting requirements and review criteria 
43.9 	under subdivision 7. A teacher with a Minnesota license must assemble and deliver 
43.10 	instruction to online learning students. The delivery of instruction occurs when the student 
43.11 	interacts with the computer or the teacher and receives ongoing assistance and assessment 
43.12 	of learning. The instruction may include curriculum developed by persons other than a 
43.13 	teacher with a Minnesota license. Unless the commissioner grants a waiver, a teacher 
43.14 	providing online learning instruction must not instruct more than 40 students in any one 
43.15 	online learning course or program.
43.16 	(f) To enroll in more than 50 percent of the student's full schedule of courses per term 
43.17 	in online learning, the student must qualify to exceed the supplemental online learning 
43.18 	registration limit under paragraph (b) or apply for enrollment to an approved full-time 
43.19 	online learning program following appropriate procedures in subdivision 3, paragraph (a). 
43.20 	Full-time online learning students may enroll in classes at a local school per contract for 
43.21 	instructional services between the online learning provider and the school district.

43.22 	Sec. 17. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 7, 
43.23 	is amended to read:
43.24 		Subd. 7.Department of Education. (a) The department must review and 
43.25 	certify online learning providers. The online learning courses and programs must be 
43.26 	rigorous, aligned with state academic standards, and contribute to grade progression 
43.27 	in a single subject. Online learning providers must demonstrate to the commissioner 
43.28 	that online learning courses have equivalent standards or instruction, curriculum, and 
43.29 	assessment requirements as other courses offered to enrolled students. The online 
43.30 	learning provider must also demonstrate expectations for actual teacher contact time 
43.31 	or other student-to-teacher communication The online provider must provide written 
43.32 	assurance that all courses meet state academic standards, and that the online learning 
43.33 	curriculum, instruction and assessment, expectations for actual teacher contact time or 
43.34 	other student-to-teacher communication, and academic support meet nationally recognized 
43.35 	professional standards and are demonstrated as such in a syllabus provided according to 
44.1 	the commissioner's requirements. Once an online learning provider is approved under 
44.2 	this paragraph, all of its online learning course offerings are eligible for payment under 
44.3 	this section unless a course is successfully challenged by an enrolling district or the 
44.4 	department under paragraph (b).
44.5 	(b) An enrolling district may challenge the validity of a course offered by an online 
44.6 	learning provider. The department must review such challenges based on the certification 
44.7 	procedures under paragraph (a). The department may initiate its own review of the validity 
44.8 	of an online learning course offered by an online learning provider.
44.9 	(c) The department may collect a fee not to exceed $250 for certifying online 
44.10 	learning providers or $50 per course for reviewing a challenge by an enrolling district.
44.11 	(d) The department must develop, publish, and maintain a list of approved online 
44.12 	learning providers and online learning courses and programs that it has reviewed and 
44.13 	certified.

44.14 	Sec. 18. Minnesota Statutes 2006, section 124D.095, subdivision 10, is amended to 
44.15 	read:
44.16 		Subd. 10.Online Learning Advisory Council. (a) An Online Learning Advisory 
44.17 	Council is established under section 15.059, except that the term for each council member 
44.18 	shall be three years. The advisory council is composed of 12 members from throughout 
44.19 	the state who have demonstrated experience with or interest in online learning. The 
44.20 	members of the council shall be appointed by the commissioner. The advisory council 
44.21 	shall bring to the attention of the commissioner any matters related to online learning and 
44.22 	provide input to the department in matters related, but not restricted, to:
44.23 	(1) quality assurance;
44.24 	(2) teacher qualifications;
44.25 	(3) program approval;
44.26 	(4) special education;
44.27 	(5) attendance;
44.28 	(6) program design and requirements; and
44.29 	(7) fair and equal access to programs.
44.30 	(b) The Online Learning Advisory Council under this subdivision expires June 
44.31 	30, 2008.
44.32 	(b) Notwithstanding section 15.059, subdivision 5, the council expires June 30, 2009.

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

45.1 	Sec. 19. Laws 2007, chapter 146, article 2, section 46, subdivision 11, is amended to 
45.2 	read:
45.3 		Subd. 11. Statewide testing and reporting system. For the statewide testing and 
45.4 	reporting system under Minnesota Statutes, section 120B.30: 

45.5		$ 
	15,150,000
	..... 
	2008 
	
45.6
45.7		$ 
	15,150,000
12,900,000
	..... 
	2009 
	
45.8 	Any testing contracts awarded by the commissioner using appropriations in this 
45.9 	subdivision must include as part of that testing contract a method to vertically link testing 
45.10 	questions across grade levels for the purposes of working towards a statewide growth 
45.11 	model. 
45.12 	$1,150,000 each year is for the value-added index assessment model. 
45.13 	Any balance in the first year does not cancel but is available in the second year. 
45.14 	The base for fiscal year 2010 and later is $13,000,000.

45.15 	Sec. 20. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to 
45.16 	read:
45.17 		Subd. 13. Preadvanced placement, advanced placement, international 
45.18 	baccalaureate, and concurrent enrollment programs. For preadvanced placement, 
45.19 	advanced placement, international baccalaureate, and concurrent enrollment programs 
45.20 	under Minnesota Statutes, sections 120B.132 and 124D.091: 

45.21		$ 
	6,500,000
	..... 
	2008 
	
45.22		$ 
	6,500,000
	..... 
	2009 
	
45.23 	Of this amount, $2,500,000 each year is for concurrent enrollment program aid 
45.24 	under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 
45.25 	commissioner must proportionately reduce the aid payment to each district. Any balance 
45.26 	in the first year does not cancel but is available in the second year.
45.27 	The base appropriation for fiscal year 2010 and later is $2,000,000This is a onetime 
45.28 	appropriation.

45.29 	Sec. 21. Laws 2007, chapter 146, article 2, section 46, subdivision 19, is amended to 
45.30 	read:
45.31 		Subd. 19. Educational Planning and Assessment System (EPAS) program. For 
45.32 	the Educational Planning and Assessment System (EPAS) program under Minnesota 
45.33 	Statutes, section 120B.128: 

46.1		$ 
	829,000600,000
	..... 
	2008 
	
46.2		$ 
	829,000400,000
	..... 
	2009 
	
46.3 	Any balance in the first year does not cancel but is available in the second year. 
46.4 	This is a onetime appropriation.

46.5 	Sec. 22. Laws 2007, chapter 146, article 2, section 46, subdivision 20, is amended to 
46.6 	read:
46.7 		Subd. 20. College-level examination program (CLEP). For the college-level 
46.8 	examination program (CLEP) under Minnesota Statutes, section 120B.131: 

46.946.10
		$ 
	1,650,000
850,000
	..... 
	2008 
	
46.11
46.12		$ 
	1,650,000
500,000
	..... 
	2009 
	
46.13 	Any balance in the first year does not cancel but is available in the second year. 
46.14 	This is a onetime appropriation.

46.15 	Sec. 23. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to 
46.16 	read:
46.17 		Subd. 2. Report. (a) The task force must submit to the education policy and finance 
46.18 	committees of the legislature by February 15, 2008 2009, a report that identifies and 
46.19 	clearly and concisely explains each provision in state law or rule that exceeds or expands 
46.20 	upon a minimum federal requirement contained in law or regulation for providing special 
46.21 	education programs and services to eligible students. The report also must recommend 
46.22 	which state provisions statutes and rules that exceed or expand upon a minimum federal 
46.23 	requirement may be amended to conform with minimum federal requirements or made 
46.24 	more effective as determined by a majority of the task force members. The task force must 
46.25 	recommend rules governing the use of aversive and deprivation procedures by school 
46.26 	district employees or persons under contract with a school district. The task force expires 
46.27 	when it submits its report to the legislature. 
46.28 	(b) Consistent with subdivision 1, the Department of Education member of the 
46.29 	task force representing regulators shall be replaced with a parent advocate selected by a 
46.30 	statewide organization that advocates on behalf of families with children with disabilities.
46.31 	(c) The Department of Education must provide technical assistance at the request of 
46.32 	the task force.

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

47.1 	Sec. 24. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to 
47.2 	read:
47.3 		Subd. 9. Special Education Task Force. For the task force to compare federal 
47.4 	and state special education requirements: 

47.5		$ 
	20,000
	..... 
	2008 
	
47.6		$
	20,000
	.....
	2009
	
47.7 	This is a onetime appropriation.

47.8 	Sec. 25. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED 
47.9 	SYSTEM.
 47.10 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
47.11 	subdivision 3, paragraph (b), and to help parents and members of the public compare 
47.12 	the reported data, the commissioner must consult with a group of expert school district 
47.13 	assessment and evaluation staff, including a recognized Minnesota assessment group 
47.14 	composed of assessment and evaluation directors and staff and researchers under 
47.15 	Minnesota Statutes, section 120B.299, subdivision 6, and interested stakeholders, 
47.16 	including school superintendents, school principals, and school teachers to examine the 
47.17 	actual statewide performance of students using Minnesota's growth-based value-added 
47.18 	system and establish criteria for identifying schools and school districts that demonstrate 
47.19 	accelerated growth in order to advance educators' professional development and replicate 
47.20 	programs that succeed in meeting students' diverse learning needs.
47.21 	(b) The commissioner must submit a written report to the chairs and ranking 
47.22 	minority members of the education committees of the house of representatives and senate 
47.23 	by February 15, 2009, describing the criteria for identifying schools and school districts 
47.24 	that demonstrate accelerated growth.

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

47.27 	Sec. 26. GROWTH-BASED VALUE-ADDED SYSTEM.
 47.28 	The growth-based value-added system used by the commissioner of education to 
47.29 	comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must be 
47.30 	consistent with the growth-based value-added model contained in the document labeled 
47.31 	"Educational Report Card Growth Model, 2008." The document must be deposited with 
47.32 	the Minnesota Office of the Revisor of Statutes, the Minnesota Legislative Reference 
47.33 	Library, and the Minnesota State Law Library, where the document shall be maintained 
47.34 	until the commissioner implements the growth-based value-added system under 
48.1 	Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b). The recognized 
48.2 	Minnesota assessment group composed of assessment and evaluation directors and 
48.3 	staff and researchers under Minnesota Statutes, section 120B.299, subdivision 6, must 
48.4 	determine whether the growth-based value-added model the commissioner uses to comply 
48.5 	with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), is consistent with 
48.6 	the deposited document and report its determination to the education committees of the 
48.7 	house of representatives and senate by February 15, 2009.

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

48.9 	Sec. 27. SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC 
48.10 	ACHIEVEMENT.
 48.11 		Subdivision 1.District academic achievement plan; priorities. (a) A school 
48.12 	district experiencing disparities in academic achievement must develop a plan to 
48.13 	significantly improve students' academic achievement using concrete measures to 
48.14 	eliminate differences in academic performance among groups of students defined by 
48.15 	race, ethnicity, and income. The plan must:
48.16 	(1) reflect a research-based understanding of high-performing educational systems 
48.17 	and best educational practices;
48.18 	(2) include innovative and practical strategies and programs, whether existing or 
48.19 	new, that supplement district initiatives to increase students' academic achievement under 
48.20 	state and federal educational accountability requirements; and
48.21 	(3) contain valid and reliable measures of student achievement that the district uses 
48.22 	to demonstrate the efficacy of the district plan to the commissioner of education.
48.23 	(b) A district must address the elements considered by the advisory task force on 
48.24 	improving students' academic achievement, to the extent those elements are implicated in 
48.25 	the district's plan.
48.26 	(c) The district must include with the plan the amount of expenditures necessary 
48.27 	to implement the plan. The district must indicate how current resources are used to 
48.28 	implement the plan, including, but not limited to, state-limited English proficiency aid 
48.29 	under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes, 
48.30 	section 124D.86; early childhood family education revenue under Minnesota Statutes, 
48.31 	section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic 
48.32 	skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time 
48.33 	revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative 
48.34 	compensation revenue under Minnesota Statutes, section 122A.415.
49.1 		Subd. 2.Plan. (a) A school district by October 1, 2008, must submit its plan in 
49.2 	electronic format to the commissioner of education, consistent with subdivision 1.
49.3 	(b) The commissioner must analyze the commonalities and differences of the district 
49.4 	plans and submit the analysis and underlying data to the advisory task force on improving 
49.5 	students' academic achievement by November 1, 2008, and also report the substance of 
49.6 	the analyses to the education policy and finance committees of the legislature by January 
49.7 	1, 2009.
49.8 	(c) A school district that submits a plan must be given priority in funding if the 
49.9 	legislature provides funding for implementing the plans.

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

49.11 	Sec. 28. ADVISORY TASK FORCE ON IMPROVING STUDENTS' 
49.12 	ACADEMIC ACHIEVEMENT.
 49.13 	(a) An advisory task force on improving students' academic achievement is 
49.14 	established to review the plans submitted to the commissioner of education and 
49.15 	recommend to the education committees of the legislature a proposal for improving 
49.16 	students' academic achievement and eliminating differences in academic performance 
49.17 	among groups of students defined by race, ethnicity, and income. The task force members 
49.18 	must at least consider how the following education-related issues impact the educational 
49.19 	achievement of low-income and minority students:
49.20 	(1) rigorous preparation and coursework and how to (i) effectively invest in early 
49.21 	childhood and parent education, (ii) impose academic rigor and high expectations on 
49.22 	elementary and secondary students in low-income and minority schools, and (iii) provide 
49.23 	parents, educators, and community members with meaningful opportunities to collaborate 
49.24 	in educating students in low-income and minority schools;
49.25 	(2) professional development for educators and how to (i) provide stronger financial 
49.26 	and professional incentives to attract and retain experienced, bilingual, and culturally 
49.27 	competent teachers and administrators in low-income and minority schools, (ii) recruit and 
49.28 	retain teachers of color, and (iii) develop and include cultural sensitivity and interpersonal 
49.29 	and pedagogical skills training that teachers need for effective intercultural teaching;
49.30 	(3) English language learners and how to (i) use well designed tests, curricula, 
49.31 	and English as a second language programs and services as diagnostic tools to develop 
49.32 	effective student interventions, (ii) monitor students' language capabilities, (iii) provide 
49.33 	academic instruction in English that supports students' learning and is appropriate 
49.34 	for students' level of language proficiency, and (iv) incorporate the perspectives and 
50.1 	contributions of ethnic and racial groups, consistent with Minnesota Statutes, section 
50.2 	120B.022, subdivision 1, paragraph (b);
50.3 	(4) special education and how to (i) incorporate linguistic and cultural sensitivity 
50.4 	into special education diagnosis and referral, (ii) increase the frequency and quality of 
50.5 	prereferral interventions, and (iii) decrease the number of minority and nonnative English 
50.6 	speaking students inappropriately placed in special education;
50.7 	(5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the 
50.8 	reading and math GRAD tests, and (ii) develop interventions to meet students' learning 
50.9 	needs; and
50.10 	(6) valid and reliable data and how to use data on student on-time graduation rates, 
50.11 	student dropout rates, documented disciplinary actions, and completed and rigorous 
50.12 	coursework indicators to determine how well-prepared low-income and minority students 
50.13 	are for postsecondary academic and career opportunities.
50.14 	The task force also must examine the findings of a 2008 report by Minnesota 
50.15 	superintendents on strategies for creating a world-class educational system to establish 
50.16 	priorities for improving students' academic achievement. The task force may consider 
50.17 	other related matters at its discretion.
50.18 	(b) The commissioner of education must convene the first meeting of the advisory 
50.19 	task force on improving students' academic achievement by July 1, 2008. The task force 
50.20 	members must select a chair from their membership at the first meeting and adopt internal 
50.21 	standards for subsequent meetings. The task force is composed of the following members:
50.22 	(1) a representative from a Twin Cities metropolitan area school district, a suburban 
50.23 	school district, a school district located in a regional center, and a rural school district, all 
50.24 	four representatives appointed by the state demographer based on identified concentrations 
50.25 	of low-income, minority, and low performing students;
50.26 	(2) a faculty member of a teacher preparation program at the University of 
50.27 	Minnesota's college of education and human development, appointed by the college dean 
50.28 	or the dean's designee;
50.29 	(3) a faculty member from the urban teachers program at Metropolitan State 
50.30 	University appointed by the university president or the president's designee;
50.31 	(4) a faculty member from a MnSCU teacher preparation program located outside 
50.32 	the Twin Cities metropolitan area, appointed by the university president or the president's 
50.33 	designee;
50.34 	(5) a classroom teacher appointed by Education Minnesota;
50.35 	(6) an expert in early childhood care and education appointed by a state early 
50.36 	childhood organization;
51.1 	(7) a member from each state council representing a community of color, appointed 
51.2 	by the respective council;
51.3 	(8) a curriculum specialist with expertise in providing language instruction for 
51.4 	nonnative English speakers, appointed by a state curriculum organization;
51.5 	(9) a special education teacher, appointed by a state organization of special education 
51.6 	educators;
51.7 	(10) a parent of color, appointed by a state parent-teacher organization;
51.8 	(11) a district testing director appointed by a recognized Minnesota assessment 
51.9 	group composed of assessment and evaluation directors and staff and researchers; and
51.10 	(12) a Minnesota Department of Education staff person with expertise in school 
51.11 	desegregation matters appointed by the commissioner of education or the commissioner's 
51.12 	designee.
51.13 	A majority of task force members, at their discretion, may invite other representatives 
51.14 	of interested public or nonpublic organizations, Minnesota's business community, 
51.15 	Minnesota private colleges, Minnesota's communities of color, and stakeholders in local 
51.16 	and state educational equity to become task force members.
51.17 	(c) Task force members' terms and other task force matters are subject to Minnesota 
51.18 	Statutes, section 15.059, except that the commissioner may reimburse task force members 
51.19 	for expenses from the Department of Education's current operating budget but may not 
51.20 	provide compensation to task force members for task force activities. By February 15, 
51.21 	2009, the task force must submit a written proposal, including draft legislation, to the 
51.22 	chairs and ranking minority members of the education policy and finance committees 
51.23 	and divisions of the legislature on how to significantly improve students' academic 
51.24 	achievement.
51.25 	(d) The advisory task force expires on February 16, 2009, or on the date the report 
51.26 	required under this section is submitted, whichever is later.

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

51.28 	Sec. 29. APPROPRIATIONS.
 51.29 		Subdivision 1.Department of Education. The sums indicated in this section are 
51.30 	appropriated from the general fund to the Department of Education for the fiscal years 
51.31 	designated.
51.32 		Subd. 2.Minnesota virtual education program. To develop and administer the 
51.33 	Minnesota virtual education program under Minnesota Statutes, section 120B.17:

51.34		$
	200,000
	.....
	2009
	
52.1 		Subd. 3.Mathematics and science teacher centers and institutes. For 
52.2 	mathematics and science teacher centers and institutes:

52.3		$
	400,000
	.....
	2009
	
52.4 		Subd. 4.Best practices. (a) For best practices grants:

52.5		$
	910,000
	.....
	2009
	
52.6 	(b) $275,000 is for a grant to the Minnesota Humanities Commission under 
52.7 	Minnesota Statutes, section 138.911.
52.8 	(c) $200,000 is for a grant to the Minnesota Historical Society.
52.9 	(d) $160,000 is for a grant to A Chance to Grow/New Visions for the Minnesota 
52.10 	Learning Resource Center's comprehensive training program for education professionals 
52.11 	charged with helping children acquire basic reading and mathematic skills.
52.12 	(e) $275,000 is for the Principal's Leadership Institute under Minnesota Statutes, 
52.13 	section 122A.74.
52.14 	(f) This is a onetime appropriation.

52.15 	ARTICLE 4
52.16 	FACILITIES AND ACCOUNTING

52.17 	Section 1. Minnesota Statutes 2007 Supplement, section 123B.54, is amended to read:
52.18 	123B.54 DEBT SERVICE APPROPRIATION.
52.19 	(a) $14,813,000 $14,814,000 in fiscal year 2008, $11,124,000 $9,109,000 in fiscal 
52.20 	year 2009, $8,866,000 $7,286,000 in fiscal year 2010, and $6,631,000 $6,878,000 in 
52.21 	fiscal year 2011 and later are appropriated from the general fund to the commissioner of 
52.22 	education for payment of debt service equalization aid under section 123B.53.
52.23 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
52.24 	money specifically appropriated for the same purpose in any year from any state fund.

52.25 	Sec. 2. Minnesota Statutes 2006, section 123B.62, is amended to read:
52.26 	123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.
52.27 	(a) In addition to other bonding authority, with approval of the commissioner, a 
52.28 	district may issue general obligation bonds for certain capital projects under this section. 
52.29 	The bonds must be used only to make capital improvements including:
52.30 	(1) under section 126C.10, subdivision 14, total operating capital revenue uses 
52.31 	specified in clauses (4), (6), (7), (8), (9), and (10); 
52.32 	(2) the cost of energy modifications;
53.1 	(3) improving disability accessibility to school buildings; and
53.2 	(4) bringing school buildings into compliance with life and safety codes and fire 
53.3 	codes; and
53.4 	(5) modifying buildings and equipment for security.
53.5 	(b) Before a district issues bonds under this subdivision, it must publish notice 
53.6 	of the intended projects, the amount of the bond issue, and the total amount of district 
53.7 	indebtedness.
53.8 	(c) A bond issue tentatively authorized by the board under this subdivision becomes 
53.9 	finally authorized unless a petition signed by more than 15 percent of the registered voters 
53.10 	of the district is filed with the school board within 30 days of the board's adoption of a 
53.11 	resolution stating the board's intention to issue bonds. The percentage is to be determined 
53.12 	with reference to the number of registered voters in the district on the last day before the 
53.13 	petition is filed with the board. The petition must call for a referendum on the question of 
53.14 	whether to issue the bonds for the projects under this section. The approval of 50 percent 
53.15 	plus one of those voting on the question is required to pass a referendum authorized 
53.16 	by this section.
53.17 	(d) The bonds must be paid off within ten15 years of issuance. The bonds must be 
53.18 	issued in compliance with chapter 475, except as otherwise provided in this section. A tax 
53.19 	levy must be made for the payment of principal and interest on the bonds in accordance 
53.20 	with section 475.61. The sum of the tax levies under this section and section 123B.61 for 
53.21 	each year must not exceed the limit specified in section 123B.61. The levy for each year 
53.22 	must be reduced as provided in section 123B.61. A district using an excess amount in the 
53.23 	debt redemption fund to retire the bonds shall report the amount used for this purpose to 
53.24 	the commissioner by July 15 of the following fiscal year. A district having an outstanding 
53.25 	capital loan under section 126C.69 or an outstanding debt service loan under section 
53.26 	126C.68 must not use an excess amount in the debt redemption fund to retire the bonds. 
53.27 	(e) Notwithstanding paragraph (d), bonds issued by a district within the first 
53.28 	five years following voter approval of a combination according to section 123A.37, 
53.29 	subdivision 2, must be paid off within 20 years of issuance. All the other provisions and 
53.30 	limitation of paragraph (d) apply. 

53.31 	Sec. 3. Minnesota Statutes 2006, section 126C.45, is amended to read:
53.32 	126C.45 ICE ARENA LEVY.
53.33 	(a) Each year, an independent school district operating and maintaining an ice arena, 
53.34 	may levy for the net operational costs of the ice arena. The levy may not exceed 90 
54.1 	percent of the net actual costs of operation of the arena for the previous year. Net actual 
54.2 	costs are defined as operating costs less any operating revenues.
54.3 	(b) Any district operating and maintaining an ice arena must demonstrate to the 
54.4 	satisfaction of the Office of Monitoring in the department that the district will offer equal 
54.5 	sports opportunities for male and female students to use its ice arena, particularly in areas 
54.6 	of access to prime practice time, team support, and providing junior varsity and younger 
54.7 	level teams for girls' ice sports and ice sports offerings.

54.8 	Sec. 4. FUND TRANSFER.
 54.9 		Subdivision 1.Balaton. Notwithstanding Minnesota Statutes, section 123B.79 or 
54.10 	123B.80, on June 30, 2008, Independent School District No. 411, Balaton, may transfer 
54.11 	up to $70,000 from its reserved for operating capital account to its undesignated general 
54.12 	fund balance without making a levy reduction.
54.13 		Subd. 2.East Central School District. Notwithstanding Minnesota Statutes, 
54.14 	section 123B.79 or 123B.80, on June 30, 2008, Independent School District No. 2580, 
54.15 	East Central, may transfer up to $300,000 from its reserved for operating capital account 
54.16 	to its undesignated general fund balance without making a levy reduction.
54.17 		Subd. 3.Hills-Beaver Creek. (a) Notwithstanding Minnesota Statutes, section 
54.18 	123B.79 or 123B.80, on June 30, 2008, Independent School District No. 671, Hills-Beaver 
54.19 	Creek, may transfer up to $260,000 from its reserved for disabled accessibility account to 
54.20 	its undesignated general fund balance without making a levy reduction.
54.21 	(b) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 
54.22 	30, 2008, Independent School District No. 671, Hills-Beaver Creek, may transfer up to 
54.23 	$100,000 from its reserved for operating capital account to its undesignated general fund 
54.24 	balance without making a levy reduction.
54.25 		Subd. 4.Rocori School District. Notwithstanding Minnesota Statutes, section 
54.26 	123B.79 or 123B.80, on June 30, 2008, Independent School District No. 750, Rocori, 
54.27 	may transfer up to $82,000 from its reserved for disabled accessibility account to its 
54.28 	undesignated general fund balance without making a levy reduction.
54.29 		Subd. 5.Virginia. Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, 
54.30 	and 475.61, subdivision 4, on June 30, 2008, Independent School District No. 706, 
54.31 	Virginia, may transfer up to $100,000 from its debt redemption fund to its undesignated 
54.32 	general fund balance without making a levy reduction.

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

54.34 	Sec. 5. ALTERNATIVE FACILITIES REVENUE PROGRAM.
 55.1 	Notwithstanding the square foot limitations in section 123B.59, subdivision 1, 
55.2 	paragraph (a), clause (2), Independent School District No. 623, Roseville, is eligible for 
55.3 	the alternative facilities bonding and levy program as if the district has met the square 
55.4 	foot requirements of that program. 

55.5 	ARTICLE 5
55.6 	NUTRITION

55.7 	Section 1. Minnesota Statutes 2006, section 124D.118, subdivision 4, is amended to 
55.8 	read:
55.9 		Subd. 4.Reimbursement. In accordance with program guidelines, the 
55.10 	commissioner shall reimburse each participating public or nonpublic school 1420 cents 
55.11 	for each half-pint of milk that is served to kindergarten students and is not part of a school 
55.12 	lunch or breakfast reimbursed under section 124D.111 or 124D.1158.

55.13 	Sec. 2. Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to read:
55.14 		Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school 
55.15 	breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 
55.16 	124D.118: 

55.17
55.18		$ 
	5,460,000
5,583,000
	..... 
	2008 
	
55.19
55.20		$ 
	5,695,000
6,396,000
	..... 
	2009 

55.21 	ARTICLE 6
55.22 	STATE AGENCIES

55.23 	Section 1. [124D.805] COMMITTEE ON AMERICAN INDIAN EDUCATION 
55.24 	PROGRAMS.
55.25 		Subdivision 1.Establishment. The commissioner of education shall create an 
55.26 	American Indian education committee. The commissioner must appoint the members 
55.27 	of the committee. Members must include representatives of tribal bodies, community 
55.28 	groups, parents of children eligible to be served by the programs, American Indian 
55.29 	administrators and teachers, persons experienced in the training of teachers for American 
55.30 	Indian education programs, persons involved in programs for American Indian children 
55.31 	in American Indian schools, and persons knowledgeable in the field of American Indian 
55.32 	education. Appointed members shall be representative of significant segments of the 
55.33 	population of American Indians.
56.1 		Subd. 2.Committee to advise commissioner. The committee on American 
56.2 	Indian education programs shall advise the commissioner in the administration of the 
56.3 	commissioner's duties under sections 124D.71 to 124D.82 and other programs for the 
56.4 	education of American Indian people as determined by the commissioner.
56.5 		Subd. 3.Expenses. The committee members must not be reimbursed for expenses. 
56.6 	The commissioner must determine the membership terms and the duration of the 
56.7 	committee, which expire no later than June 30, 2020.

56.8 	Sec. 2. Laws 2007, chapter 146, article 7, section 4, is amended to read:
56.9 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 56.10 		Subdivision 1. Department of Education. Unless otherwise indicated, the sums 
56.11 	indicated in this section are appropriated from the general fund to the Department of 
56.12 	Education for the fiscal years designated. 
56.13 		Subd. 2. Department. (a) For the Department of Education: 

56.14		$ 
	22,169,000
	..... 
	2008 
	
56.15
56.16		$ 
	22,653,000
22,207,000
	..... 
	2009 
	
56.17 	Any balance in the first year does not cancel but is available in the second year. 
56.18 	(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking. 
56.19 	(c) $7,000 in fiscal year 2008 is for rulemaking under section 3. 
56.20 	(d) $40,000 each year is for an early hearing loss intervention coordinator under 
56.21 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
56.22 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, 
56.23 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
56.24 	employing a world languages coordinator. 
56.25 	(e) $260,000 each year is for the Minnesota Children's Museum. 
56.26 	(f) $41,000 each year is for the Minnesota Academy of Science. 
56.27 	(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 
56.28 	of Teaching. 
56.29 	(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 
56.30 	of School Administrators. 
56.31 	(i) $50,000 each year is for the Duluth Children's Museum. 
56.32 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
56.33 	document and its supplements are approved and appropriated and shall be spent as 
56.34 	indicated. 
57.1 	(k) None of the amounts appropriated under this subdivision may be used for 
57.2 	Minnesota's Washington, D.C., office.
57.3 	(l) $20,000 in fiscal year 2009 is for the outdoor education working group. 
57.4 	(m) $112,000 in fiscal year 2009 is for the administration of the online learning 
57.5 	program.
57.6 	(n) $6,000 in fiscal year 2009 is for the Online Learning Advisory Council.
57.7 	(o) $50,000 in fiscal year 2009 is for the State Advisory Board on Early Learning.
57.8 	(p) $188,000 in fiscal year 2009 is for the administration of the school performance 
57.9 	report card.
57.10 	(q) $100,000 in fiscal year 2009 is for the academic achievement plan. The 
57.11 	department shall not expend any funds unless a match of an equal amount of nonstate 
57.12 	funds has been received.
57.13 	(r) The base for fiscal year 2010 and later is $21,914,000.

57.14 	Sec. 3. OUTDOOR EDUCATION WORKING GROUP.
 57.15 	(a) The commissioner of natural resources shall coordinate a working group with the 
57.16 	commissioner of education to report recommendations to the legislature on the teaching of 
57.17 	outdoor education in grades 7 through 12. 
57.18 	(b) Each commissioner shall designate members of the working group and shall 
57.19 	include at least one parent, one representative of higher education, one outdoor educator, 
57.20 	and one representative from a sportsman or wildlife organization. The appointments and 
57.21 	designations must be completed by August 1, 2008. 
57.22 	(c) The working group must report recommendations, proposed changes, sources 
57.23 	of funding, and draft legislation to the legislative committees with jurisdiction over 
57.24 	kindergarten through grade 12 education policy and finance, and environment policy and 
57.25 	environment finance by January 15, 2009. The working group expires June 30, 2009.

57.26 	ARTICLE 7
57.27 	LIFELONG LEARNING

57.28 	Section 1. Minnesota Statutes 2006, section 121A.19, is amended to read:
57.29 	121A.19 DEVELOPMENTAL SCREENING AID.
57.30 	Each school year, the state must pay a district for each child or student screened by 
57.31 	the district according to the requirements of section 121A.17. The amount of state aid 
57.32 	for each child or student screened shall be: (1) $50 $75 for a child screened at age three; 
57.33 	(2) $40 $50 for a child screened at age four; (3) $30 $40 for a child screened at age five 
57.34 	or six prior to kindergarten; and (4) $30 for a student screened within 30 days after first 
58.1 	enrolling in a public school kindergarten if the student has not previously been screened 
58.2 	according to the requirements of section 121A.17. If this amount of aid is insufficient, 
58.3 	the district may permanently transfer from the general fund an amount that, when added 
58.4 	to the aid, is sufficient. Developmental screening aid shall not be paid for any student 
58.5 	who is screened more than 30 days after the first day of attendance at a public school 
58.6 	kindergarten, except if a student transfers to another public school kindergarten within 
58.7 	30 days after first enrolling in a Minnesota public school kindergarten program. In this 
58.8 	case, if the student has not been screened, the district to which the student transfers may 
58.9 	receive developmental screening aid for screening that student when the screening is 
58.10 	performed within 30 days of the transfer date.

58.11 	Sec. 2. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, is 
58.12 	amended to read:
58.13 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
58.14 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 
58.15 	aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during 
58.16 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
58.17 	section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 
58.18 	2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 
58.19 	year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, 
58.20 	subdivision 3. The state total adult basic education aid for fiscal year 2008 equals 
58.21 	$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 
58.22 	adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 
58.23 	state total adult basic education aid for later fiscal years equals:
58.24 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
58.25 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
58.26 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
58.27 	(2) the lesser of:
58.28 	(i) 1.03; or
58.29 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
58.30 	program year to the state total contact hours in the second prior program year the average 
58.31 	growth in state total contact hours over the prior 10 program years.
58.32 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
58.33 	aid must be set aside for adult basic education supplemental service grants under section 
58.34 	124D.522.
59.1 	(b) The state total adult basic education aid, excluding basic population aid, equals 
59.2 	the difference between the amount computed in paragraph (a), and the state total basic 
59.3 	population aid under subdivision 2.

59.4 	Sec. 3. Laws 2007, chapter 146, article 5, section 11, subdivision 1, is amended to read:
59.5 		Subdivision 1. Fiscal year 2007 replacement aid.  Independent School District No. 
59.6 	2899, Plainview-Elgin-Millville, is eligible for replacement aidrevenue to offset its excess 
59.7 	fund balance penalty for fiscal year 2007. The aid adjustment must be made under Laws 
59.8 	2007, chapter 146, article 5, section 13, subdivision 5. The levy adjustment of $6,600 
59.9 	must be included as part of the district's property taxes for taxes payable in 2009.

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

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

59.14
59.15		$ 
	3,159,000
2,624,000
	..... 
	2008 
	
59.16
59.17		$ 
	3,330,000
3,592,000
	..... 
	2009 
	
59.18 	The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,000
59.19 	for 2008. 
59.20 	The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,000
59.21 	$3,333,000 for 2009. 

59.22 	Sec. 5. STATE ADVISORY BOARD ON EARLY LEARNING.
 59.23 		Subdivision 1.Establishment. A 12-member State Advisory Board on Early 
59.24 	Learning is established to make recommendations on the most efficient and effective way 
59.25 	to leverage state and federal funding streams for early childhood and child care programs. 
59.26 	The board must also consider the feasibility of coordinating or colocating early childhood 
59.27 	and child care programs in one state Office of Early Learning. The board shall also 
59.28 	review the Minnesota Early Learning Foundation recommendations and determine what 
59.29 	legislative changes, if any, need to be enacted and make recommendations by February 
59.30 	1 of each year to the governor and legislature, including proposed legislation on how to 
59.31 	most effectively create a high quality early childhood system in Minnesota in order to 
59.32 	improve the educational outcomes of children.
60.1 		Subd. 2.Board members; terms. (a) The advisory board includes the following 
60.2 	12 members:
60.3 	(1) the commissioner of employment and economic development or the 
60.4 	commissioner's designee;
60.5 	(2) the commissioner of health or the commissioner's designee;
60.6 	(3) the commissioner of education or the commissioner's designee;
60.7 	(4) the commissioner of human services or the commissioner's designee;
60.8 	(5) four public members who are recognized experts in early care and education, 
60.9 	including one member appointed by the speaker of the house, one appointed by the 
60.10 	minority leader of the house, one appointed by the majority leader of the senate, and one 
60.11 	appointed by the minority leader of the senate;
60.12 	(6) two public members who are community or business leaders, including one 
60.13 	appointed by the speaker of the house and one appointed by the majority leader of the 
60.14 	senate; and
60.15 	(7) two parents with at least one child under the age of six appointed by the governor.
60.16 	(b) Members appointed by the majority and minority leaders in the house and senate 
60.17 	serve three-year terms. Board members must nominate and elect a chair and other officers 
60.18 	from among the public members. Meetings shall be called by the chair or at the written 
60.19 	request of any three members. Members' terms, compensation, removal, and vacancies are 
60.20 	governed by section 15.0575, except that board members must not be paid a per diem or 
60.21 	reimbursed for any expenses associated with their membership on the board.
60.22 	(c) Appointing authorities must use their best efforts to ensure that the public 
60.23 	members of the board represent the communities of color.
60.24 		Subd. 3.Board expiration. The State Advisory Board on Early Learning expires 
60.25 	January 1, 2013.

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

60.27 	ARTICLE 8
60.28 	PREKINDERGARTEN THROUGH GRADE 12 EDUCATION
60.29 	FORECAST ADJUSTMENTS
60.30 	A. GENERAL EDUCATION

60.31 	Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to 
60.32 	read:
60.33 		Subd. 3. Referendum tax base replacement aid. For referendum tax base 
60.34 	replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

61.1		$ 
	870,000861,000
	..... 
	2008 
	
61.2 	The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.

61.3 	Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:
61.4 		Subd. 4. Enrollment options transportation. For transportation of pupils attending 
61.5 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
61.6 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

61.7		$ 
	95,00048,000
	..... 
	2008 
	
61.8		$ 
	97,00050,000
	..... 
	2009 

61.9 	Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:
61.10 		Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section 
61.11 	127A.49:

61.12
61.13		$ 
	1,343,000
1,333,000
	..... 
	2008 
	
61.14
61.15		$ 
	1,347,000
1,629,000
	..... 
	2009 
	
61.16 	The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,000
61.17 	for 2008.
61.18 	The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,000
61.19 	$1,490,000 for 2009.

61.20 	Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:
61.21 		Subd. 6. Consolidation transition. For districts consolidating under Minnesota 
61.22 	Statutes, section 123A.485:

61.23		$ 
	565,000240,000
	..... 
	2008 
	
61.24		$ 
	212,000339,000
	..... 
	2009 
	
61.25 	The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.
61.26 	The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,000
61.27 	for 2009.

61.28 	Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:
61.29 		Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under 
61.30 	Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

62.1
62.2		$ 
	16,290,000
15,601,000
	..... 
	2008 
	
62.3
62.4		$ 
	16,620,000
16,608,000
	..... 
	2009 
	
62.5 	The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,000
62.6 	$14,387,000 for 2008.
62.7 	The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,000
62.8 	$15,010,000 for 2009.

62.9 	Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:
62.10 		Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid 
62.11 	under Minnesota Statutes, section 123B.92, subdivision 9:

62.12
62.13		$ 
	21,551,000
20,755,000
	..... 
	2008 
	
62.14
62.15		$ 
	21,392,000
21,007,000
	..... 
	2009 
	
62.16 	The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,000
62.17 	for 2008.
62.18 	The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,000
62.19 	$18,937,000 for 2009.
62.20 	B. EDUCATION EXCELLENCE

62.21 	Sec. 7. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:
62.22 		Subd. 2. Charter school building lease aid. For building lease aid under Minnesota 
62.23 	Statutes, section 124D.11, subdivision 4: 

62.24
62.25		$ 
	31,875,000
32,817,000
	..... 
	2008 
	
62.26
62.27		$ 
	36,193,000
37,527,000
	..... 
	2009 
	
62.28 	The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,000
62.29 	for 2008. 
62.30 	The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,000
62.31 	$34,194,000 for 2009. 

62.32 	Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:
62.33 		Subd. 3. Charter school startup cost aid. For charter school startup cost aid 
62.34 	under Minnesota Statutes, section 124D.11: 

63.1
63.2		$ 
	1,896,000
1,801,000
	..... 
	2008 
	
63.3
63.4		$ 
	2,161,000
1,987,000
	..... 
	2009 
	
63.5 	The 2008 appropriation includes $241,000$239,000 for 2007 and $1,655,000
63.6 	$1,562,000 for 2008. 
63.7 	The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,000
63.8 	$1,814,000 for 2009. 

63.9 	Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to read:
63.10 		Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section 
63.11 	124D.86, subdivision 5: 

63.12
63.13		$ 
	61,769,000
59,036,000
	..... 
	2008 
	
63.14
63.15		$ 
	61,000,000
62,448,000
	..... 
	2009 
	
63.16 	The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,000
63.17 	for 2008. 
63.18 	The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,000
63.19 	$56,536,000 for 2009. 

63.20 	Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to 
63.21 	read:
63.22 		Subd. 6. Interdistrict desegregation or integration transportation grants. For 
63.23 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
63.24 	section 124D.87: 

63.25
63.26		$ 
	9,639,000
9,901,000
	..... 
	2008 
	
63.27
63.28		$ 
	11,567,000
11,881,000
	..... 
	2009 

63.29 	Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to 
63.30 	read:
63.31 		Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota 
63.32 	Statutes, section 124D.83: 

63.33
63.34		$ 
	2,238,000
2,207,000
	..... 
	2008 
	
63.35
63.36		$ 
	2,422,000
2,392,000
	..... 
	2009 
	
64.1 	The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,000
64.2 	for 2008. 
64.3 	The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,000
64.4 	$2,170,000 for 2009. 
64.5 	C. SPECIAL PROGRAMS

64.6 	Sec. 12. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to 
64.7 	read:
64.8 		Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, 
64.9 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
64.10 	within the district boundaries for whom no district of residence can be determined: 

64.11
64.12		$ 
	1,538,000
2,086,000
	..... 
	2008 
	
64.13
64.14		$ 
	1,729,000
2,282,000
	..... 
	2009 
	
64.15 	If the appropriation for either year is insufficient, the appropriation for the other 
64.16 	year is available. 

64.17 	Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to 
64.18 	read:
64.19 		Subd. 4. Travel for home-based services. For aid for teacher travel for home-based 
64.20 	services under Minnesota Statutes, section 125A.75, subdivision 1: 

64.21		$ 
	254,000207,000
	..... 
	2008 
	
64.22		$ 
	284,000227,000
	..... 
	2009 
	
64.23 	The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008. 
64.24 	The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,000
64.25 	for 2009. 
64.26 	D. FACILITIES AND TECHNOLOGY

64.27 	Sec. 14. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to 
64.28 	read:
64.29 		Subd. 2. Health and safety revenue. For health and safety aid according to 
64.30 	Minnesota Statutes, section 123B.57, subdivision 5: 

64.31		$ 
	190,000254,000
	..... 
	2008 
	
64.32		$ 
	179,000103,000
	..... 
	2009 
	
64.33 	The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008. 
65.1 	The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,000
65.2 	for 2009. 

65.3 	Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to 
65.4 	read:
65.5 		Subd. 3. Debt service equalization. For debt service aid according to Minnesota 
65.6 	Statutes, section 123B.53, subdivision 6: 

65.7
65.8		$ 
	14,813,000
14,814,000
	..... 
	2008 
	
65.965.10
		$ 
	11,124,000
9,109,000
	..... 
	2009 
	
65.11 	The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,000
65.12 	$13,048,000 for 2008. 
65.13 	The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,000
65.14 	$7,660,000 for 2009. 

65.15 	Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to 
65.16 	read:
65.17 		Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to 
65.18 	Minnesota Statutes, section 123B.591, subdivision 4: 

65.19
65.20		$ 
	3,290,000
3,232,000
	..... 
	2008 
	
65.21
65.22		$ 
	2,667,000
2,627,000
	..... 
	2009 
	
65.23 	The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008. 
65.24 	The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,000
65.25 	$2,268,000 for 2009. 

65.26 	Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to 
65.27 	read:
65.28 		Subd. 8. School technology and operating capital aid grants. For school 
65.29 	technology and operating capital grants under section 11: 

65.30
65.31		$ 
	38,145,000
38,236,000
	..... 
	2008 
	
65.32
65.33		$ 
	52,676,000
52,454,000
	..... 
	2009 
	
65.34 	This is a onetime appropriation. 
65.35 	E. NUTRITION

66.1 	Sec. 18. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to 
66.2 	read:
66.3 		Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, 
66.4 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17: 

66.5
66.6		$ 
	12,022,000
12,094,000
	..... 
	2008 
	
66.7
66.8		$ 
	12,166,000
12,394,000
	..... 
	2009 

66.9 	Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to 
66.10 	read:
66.11 		Subd. 4. Summer food service replacement aid. For summer food service 
66.12 	replacement aid under Minnesota Statutes, section 124D.119: 

66.13		$ 
	150,000127,000
	..... 
	2008 
	
66.14		$ 
	150,000
	..... 
	2009 
	
66.15 	F. EARLY CHILDHOOD AND ADULT PROGRAMS

66.16 	Sec. 20. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to 
66.17 	read:
66.18 		Subd. 2. Early childhood family education aid. For early childhood family 
66.19 	education aid under Minnesota Statutes, section 124D.135: 

66.20
66.21		$ 
	21,106,000
21,092,000
	..... 
	2008 
	
66.22
66.23		$ 
	29,601,000
29,324,000
	..... 
	2009 
	
66.24 	The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,000
66.25 	for 2008. 
66.26 	The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,000
66.27 	$27,180,000 for 2009. 

66.28 	Sec. 21. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to 
66.29 	read:
66.30 		Subd. 3. School readiness. For revenue for school readiness programs under 
66.31 	Minnesota Statutes, sections 124D.15 and 124D.16: 

66.32
66.33		$ 
	9,995,000
9,987,000
	..... 
	2008 
	
66.34		$ 
	10,095,000
	..... 
	2009 
	
67.1 	The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for 
67.2 	2008. 
67.3 	The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009. 

67.4 	Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to 
67.5 	read:
67.6 		Subd. 8. Community education aid. For community education aid under 
67.7 	Minnesota Statutes, section 124D.20: 

67.8
67.9		$ 
	1,307,000
1,299,000
	..... 
	2008 
	
67.10		$ 
	816,000796,000
	..... 
	2009 
	
67.11 	The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,000
67.12 	for 2008. 
67.13 	The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,000
67.14 	$674,000 for 2009. 

67.15 	Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to 
67.16 	read:
67.17 		Subd. 9. Adults with disabilities program aid. For adults with disabilities 
67.18 	programs under Minnesota Statutes, section 124D.56: 

67.19		$ 
	710,000709,000
	..... 
	2008 
	
67.20		$ 
	710,000
	..... 
	2009 
	
67.21 	The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008. 
67.22 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009. 
67.23 	School districts operating existing adults with disabilities programs that are not fully 
67.24 	funded shall receive full funding for the program beginning in fiscal year 2008 before the 
67.25 	commissioner awards grants to other districts. 

67.26 	Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to 
67.27 	read:
67.28 		Subd. 13. Adult basic education aid. For adult basic education aid under 
67.29 	Minnesota Statutes, section 124D.531: 

67.30
67.31		$ 
	40,347,000
40,344,000
	..... 
	2008 
	
67.32
67.33		$ 
	41,745,000
41,712,000
	..... 
	2009 
	
68.1 	The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,000
68.2 	for 2008. 
68.3 	The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,000
68.4 	for 2009. 

68.5 	ARTICLE 9
68.6 	HIGHER EDUCATION

68.7	Section 1. SUMMARY OF APPROPRIATIONS.
 	
68.8 	The amounts shown in this section summarize direct appropriations, by fund, made 
68.9 	in this article.

68.10			2008
		2009
		Total
	
68.11
68.12	Minnesota Office of Higher 
Education
	$
	-0-
	$
	(7,701,000)
	$
	(7,701,000)
	
68.13
68.14
68.15	Board of Trustees of the 
Minnesota State Colleges and 
Universities
		-0-
		(5,100,000)
		(5,100,000)
	
68.16
68.17	Board of Regents of the 
University of Minnesota
		(5,000,000)
		(5,000,000)
		(10,000,000)
	
68.18	Total
	$
	(5,000,000)
	$
	(17,801,000)
	$
	(22,801,000)

68.19	Sec. 2. APPROPRIATIONS.
 	
68.20 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
68.21 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 144, article 1, to 
68.22 	the agencies and for the purposes specified in this article. The appropriations are from the 
68.23 	general fund, or another named fund, and are available for the fiscal years indicated for 
68.24 	each purpose. The figures "2008" and "2009" used in this article mean that the addition to 
68.25 	or subtraction from the appropriations listed under them are available for the fiscal year 
68.26 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
68.27 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day 
68.28 	following final enactment. "The first year" is fiscal year 2008. "The second year" is fiscal 
68.29 	year 2009. "The biennium" is fiscal years 2008 and 2009.

68.30				APPROPRIATIONS
	
68.31				Available for the Year
	
68.32				Ending June 30
	
68.33					2008
		2009

68.34
68.35	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

68.36	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(7,611,000)
	
69.1 	The amounts that must be reduced for 
69.2 	each purpose are specified in the following 
69.3 	subdivisions.

69.4	Subd. 2.Interstate Tuition Reciprocity
 		-0-
		(250,000)

69.5	Subd. 3.Minnesota College Savings Plan
 		-0-
		(250,000)

69.6	Subd. 4.Achieve Scholarship Program
 		-0-
		(7,000,000)

69.7	Subd. 5.Agency Administration
 		-0-
		(111,000)

69.8	Subd. 6.Cancellation
 					
69.9 	By June 30, 2009, the commissioner of 
69.10 	finance shall cancel to the general fund 
69.11 	$90,000 of the appropriation in Laws 2005, 
69.12 	chapter 107, article 1, section 2, subdivision 
69.13 	12, to upgrade computer program application 
69.14 	software related to state grant awards.

69.15	Subd. 7.Transfers In
 					
69.16 	The commissioner of finance must transfer 
69.17 	$18,000 to the general fund from the 
69.18 	technology carryforward account in the 
69.19 	special revenue fund by June 30, 2008.
69.20 	The commissioner of finance must transfer 
69.21 	$100,000 to the general fund from the private 
69.22 	institutions regulation account in the special 
69.23 	revenue fund by June 30, 2009. 

69.24
69.25
69.26	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

69.27	Subdivision 1.Total Appropriation
 		-0-
	$
	(5,100,000)
	
69.28 	The amounts that must be reduced or 
69.29 	added for each purpose are specified in the 
69.30 	following subdivisions.

69.31	Subd. 2.General Reduction
 		-0-
		(6,600,000)
	
69.32 	The Board of Trustees must allocate 
69.33 	reductions under this section to the general 
70.1 	fund appropriations in Laws 2007, chapter 
70.2 	144, article 1, section 4, subdivision 1. 
70.3 	The Board of Trustees must achieve the 
70.4 	appropriation reductions in this section from 
70.5 	activities in the Office of the Chancellor that 
70.6 	do not have a direct effect on instructional 
70.7 	services to students and that do not result 
70.8 	in reductions to the amounts distributed to 
70.9 	individual campuses. The Board of Trustees 
70.10 	is encouraged to review the implementation 
70.11 	schedule for technology and infrastructure 
70.12 	initiatives to identify activities that can be 
70.13 	delayed without affecting direct instructional 
70.14 	services to students. The Board of Trustees 
70.15 	is encouraged to avoid allocating reductions 
70.16 	that would require increased tuition revenue 
70.17 	to maintain instructional services to students. 
70.18 	The Board of Trustees by November 1, 2008, 
70.19 	must report to the Department of Finance 
70.20 	and the senate and house of representatives 
70.21 	committees with primary jurisdiction over 
70.22 	higher education finance the specific amount 
70.23 	of reductions and the activities that receive 
70.24 	reductions. The intent of the legislature 
70.25 	in limiting the amount of appropriations 
70.26 	reductions to the Minnesota state colleges 
70.27 	and universities system is to support the 
70.28 	decision by the Board of Trustees to devote 
70.29 	sufficient resources in fiscal year 2009 to 
70.30 	limit tuition increases to two percent at 
70.31 	technical colleges, community colleges, 
70.32 	and consolidated community and technical 
70.33 	colleges; and three percent at universities. 
70.34 	The legislature is committed to advancing 
70.35 	the funding policy set forth in Minnesota 
70.36 	Statutes, section 135A.01, by minimizing 
71.1 	reductions to higher education systems in 
71.2 	the state.

71.3	Subd. 3.Nonresident Tuition
 		-0-
		500,000
	
71.4 	This appropriation is to provide funding for 
71.5 	the elimination of nonresident undergraduate 
71.6 	tuition at Alexandria Technical College, 
71.7 	Anoka Technical College, Hennepin 
71.8 	Technical College, and North Hennepin 
71.9 	Community College. The board must 
71.10 	allocate the funds to the named campuses 
71.11 	based on fiscal year 2007 tuition rates and 
71.12 	projected nonresident enrollment. 

71.13	Subd. 4.Reciprocity Tuition
 		-0-
		1,000,000
	
71.14 	The Board of Trustees must allocate this 
71.15 	appropriation to any community college 
71.16 	or consolidated community and technical 
71.17 	college that experienced a reduction in 
71.18 	reciprocity tuition revenue directly resulting 
71.19 	from the elimination of nonresident tuition 
71.20 	on or after May 30, 2007. The board must 
71.21 	allocate the funds based on the fiscal year 
71.22 	2008 Wisconsin reciprocity tuition rate 
71.23 	and fiscal year 2007 reciprocity student 
71.24 	enrollment.

71.25
71.26	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

71.27	Subdivision 1.Total Appropriation
 		(5,000,000)
	$
	(5,000,000)
	
71.28 	The amounts that must be reduced or 
71.29 	added for each purpose are specified in the 
71.30 	following subdivisions.

71.31	Subd. 2.General Reduction
 		(5,000,000)
		(5,500,000)
	
71.32 	The Board of Regents must allocate 
71.33 	reductions under this section to the general 
71.34 	fund appropriations in Laws 2007, chapter 
72.1 	144, article 1, section 5, subdivision 1. The 
72.2 	Board of Regents by November 1, 2008, 
72.3 	must report to the Department of Finance 
72.4 	and the senate and house of representatives 
72.5 	committees with primary jurisdiction over 
72.6 	higher education finance the specific amount 
72.7 	of reductions and the activities that receive 
72.8 	reductions.
72.9 	The Board of Regents is encouraged to 
72.10 	avoid allocating reductions to programs and 
72.11 	activities that would require increased tuition 
72.12 	revenue to maintain instructional services to 
72.13 	students.

72.14
72.15	Subd. 3.Global Modeling of Health Care 
Reforms
 		-0-
		200,000
	
72.16 	For the health policy and management 
72.17 	division of the School of Public Health for 
72.18 	the purposes of section 18. This is a onetime 
72.19 	appropriation.

72.20
72.21	Subd. 4.Economic Analysis of Health Care 
Reform Plans
 		-0-
		300,000
	
72.22 	For the health policy and management 
72.23 	division of the School of Public Health for 
72.24 	the purposes of section 19. This is a onetime 
72.25 	appropriation.

72.26 	Sec. 6. Minnesota Statutes 2007 Supplement, section 136A.101, subdivision 5a, 
72.27 	is amended to read:
72.28 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means 
72.29 	the amount of a family's contribution to a student's cost of attendance, as determined by a 
72.30 	federal need analysis. For dependent students, the assigned family responsibility is 96 93
72.31 	percent of the parental contribution. For independent students with dependents other than 
72.32 	a spouse, the assigned family responsibility is 86 83 percent of the student contribution. 
72.33 	For independent students without dependents other than a spouse, the assigned family 
72.34 	responsibility is 68 65 percent of the student contribution. 

73.1 	Sec. 7. Minnesota Statutes 2006, section 136A.101, subdivision 8, is amended to read:
73.2 		Subd. 8.Resident student. "Resident student" means a student who meets one of 
73.3 	the following conditions:
73.4 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
73.5 	education for at least 12 months without being enrolled at a postsecondary educational 
73.6 	institution for more than five credits in any term;
73.7 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
73.8 	time the student applies;
73.9 	(3) a student who graduated from a Minnesota high school, if the student was a 
73.10 	resident of Minnesota during the student's period of attendance at the Minnesota high 
73.11 	school and the student is physically attending a Minnesota postsecondary educational 
73.12 	institution; 
73.13 	(4) a student who, after residing in the state for a minimum of one year, earned a 
73.14 	high school equivalency certificate in Minnesota;
73.15 	(5) a member, spouse, or dependent of a member of the armed forces of the United 
73.16 	States stationed in Minnesota on active federal military service as defined in section 
73.17 	190.05, subdivision 5c;
73.18 	(6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran 
73.19 	is a Minnesota resident;
73.20 	(7) a person or spouse of a person who relocated to Minnesota from an area that 
73.21 	is declared a presidential disaster area within the preceding 12 months if the disaster 
73.22 	interrupted the person's postsecondary education; or
73.23 	(7) (8) a person defined as a refugee under United States Code, title 8, section 
73.24 	1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has 
73.25 	continued to reside in Minnesota.

73.26 	Sec. 8. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
73.27 		Subd. 5.Grant stipends. The grant stipend shall be based on a sharing of 
73.28 	responsibility for covering the recognized cost of attendance by the applicant, the 
73.29 	applicant's family, and the government. The amount of a financial stipend must not 
73.30 	exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 
73.31 	deducting the following:
73.32 	(1) the assigned student responsibility of at least 4645 percent of the cost of 
73.33 	attending the institution of the applicant's choosing;
73.34 	(2) the assigned family responsibility as defined in section 136A.101; and 
73.35 	(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
74.1 	The minimum financial stipend is $100 per academic year.

74.2 	Sec. 9. Minnesota Statutes 2007 Supplement, section 136A.121, subdivision 7a, 
74.3 	is amended to read:
74.4 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
74.5 	office to be more than sufficient to fund projected grant demand in the second year of the 
74.6 	biennium, the office may increase the living and miscellaneous expense allowance in the 
74.7 	second year of the biennium by up to an amount that retains sufficient appropriations 
74.8 	to fund the projected grant demand. The adjustment may be made one or more times. 
74.9 	In making the determination that there are more than sufficient funds, the office shall 
74.10 	balance the need for sufficient resources to meet the projected demand for grants with the 
74.11 	goal of fully allocating the appropriation for state grants. An increase in the living and 
74.12 	miscellaneous expense allowance under this subdivision does not carry forward into a 
74.13 	subsequent biennium. This subdivision expires June 30, 2009.

74.14 	Sec. 10. Minnesota Statutes 2007 Supplement, section 136A.128, is amended by 
74.15 	adding a subdivision to read:
74.16 		Subd. 4.Administration. A nonprofit organization that receives a grant under this 
74.17 	section may use five percent of the grant amount to administer the program.

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

74.20 	Sec. 11. Minnesota Statutes 2006, section 136F.60, subdivision 5, is amended to read:
74.21 		Subd. 5.Disposition of surplus property. (a) The board may declare state lands or 
74.22 	improvements under its control that are no longer needed by the Minnesota State Colleges 
74.23 	and Universities system to be surplus and may offer them for public sale in a manner 
74.24 	consistent with the procedures set forth in sections 16B.282 to 16B.286 for disposition of 
74.25 	state lands by the commissioner of administration. The parcels must not be exchanged or 
74.26 	transferred for no or nominal consideration.
74.27 	(b) Proceeds from the sale or disposition of land or improvements under this 
74.28 	subdivision, after paying all expenses incurred in selling or disposing of the land and 
74.29 	then paying any amounts due under section 16A.695, are appropriated to the board for 
74.30 	use for capital projects at the institution that was responsible for management of the 
74.31 	land or improvements.

74.32 	Sec. 12. Minnesota Statutes 2006, section 136F.98, subdivision 1, is amended to read:
75.1 		Subdivision 1.Issuance of bonds. The Board of Trustees of the Minnesota State 
75.2 	Colleges and Universities or a successor may issue revenue bonds under sections 136F.90
75.3 	to 136F.97 whose aggregate principal amount at any time may not exceed $150,000,000
75.4 	$200,000,000, and payable from the revenue appropriated to the fund established by 
75.5 	section 136F.94, and use the proceeds together with other public or private money that 
75.6 	may otherwise become available to acquire land, and to acquire, construct, complete, 
75.7 	remodel, and equip structures or portions thereof to be used for dormitory, residence hall, 
75.8 	student union, food service,  parking purposes, or for any other similar revenue-producing 
75.9 	building or buildings of such type and character as the board finds desirable for the good 
75.10 	and benefit of the state universities. Before issuing the bonds or any part of them, the 
75.11 	board shall consult with and obtain the advisory recommendations of the chairs of the 
75.12 	house Ways and Means Committee and the senate Finance Committee about the facilities 
75.13 	to be financed by the bonds.

75.14 	Sec. 13. Minnesota Statutes 2006, section 299A.45, subdivision 1, is amended to read:
75.15 		Subdivision 1.Eligibility. Following certification A person is eligible to receive 
75.16 	educational benefits under this section if the person:
75.17 	(1) is certified under section 299A.44 and in compliance with this section and rules 
75.18 	of the commissioner of public safety and the Minnesota Office of Higher Education,;
75.19 	(2) is enrolled in an undergraduate degree or certificate program after June 30, 1990, 
75.20 	at an eligible Minnesota institution as provided in section 136A.101, subdivision 4;
75.21 	(3) has not receive a baccalaureate degree or been enrolled full time for ten semesters 
75.22 	or the equivalent, except that a student who withdraws from enrollment for active military 
75.23 	service is entitled to an additional semester or the equivalent of eligibility; and
75.24 	(4) is related in one of the following ways to a public safety officer killed in the 
75.25 	line of duty on or after January 1, 1973:
75.26 	(i) as a dependent children child less than 23 years of age and the;
75.27 	(ii) as a surviving spouse of a public safety officer killed in the line of duty on 
75.28 	or after January 1, 1973, are eligible to receive educational benefits under this section. 
75.29 	To qualify for an award, they must be enrolled in undergraduate degree or certificate 
75.30 	programs after June 30, 1990, at an eligible Minnesota institution as provided in section 
75.31 	136A.101, subdivision 4. A student who withdraws from enrollment for active military 
75.32 	service is entitled to an additional semester or the equivalent of grant eligibility. Persons 
75.33 	who have received a baccalaureate degree or have been enrolled full time or the equivalent 
75.34 	of ten semesters or the equivalent, whichever occurs first, are no longer eligible.; or
76.1 	(iii) as a dependent child less than 30 years of age who has served on active military 
76.2 	duty 181 consecutive days or more and has been honorably discharged or released to the 
76.3 	dependent child's reserve or National Guard unit.

76.4 	Sec. 14. Laws 2007, chapter 144, article 1, section 3, subdivision 2, is amended to read:

76.5	Subd. 2. State Grants
 		147,400,000 
		144,138,000 
	
76.6 	If the appropriation in this subdivision for 
76.7 	either year is insufficient, the appropriation 
76.8 	for the other year is available for it. 
76.9 	For the biennium, the tuition maximum for 
76.10 	students in four-year programs is $9,838 
76.11 	in each yearthe first year and $10,133 in 
76.12 	the second year for students in four-year 
76.13 	programs, and for students in two-year 
76.14 	programs, is $6,114 in the first year and 
76.15 	$5,808 in the second year. 
76.16 	This appropriation sets the living and 
76.17 	miscellaneous expense allowance at $5,900 
76.18 	each year. 

76.19 	Sec. 15. Laws 2007, chapter 144, article 1, section 3, subdivision 13, is amended to 
76.20 	read:

76.21	Subd. 13. Achieve Scholarship Program
 		3,400,000 
		7,400,000 
	
76.22 	(a) Of this amount, $200,000 in fiscal 
76.23 	year 2008 and $200,000 in fiscal year 
76.24 	2009 are for transfer to the University of 
76.25 	Minnesota and $200,000 in fiscal year 2008 
76.26 	and $200,000 in fiscal year 2009 are for 
76.27 	transfer to the Minnesota State Colleges 
76.28 	and Universities to provide courses under 
76.29 	Minnesota Statutes, section 124D.09, 
76.30 	subdivision 10, to high school students living 
76.31 	in remote and underserved areas where 
76.32 	the school district lacks the resources to 
76.33 	provide academically rigorous educational 
77.1 	opportunities, such as Advanced Placement 
77.2 	and International Baccalaureate programs. 
77.3 	Courses may be delivered by a high school 
77.4 	or postsecondary faculty member, online, or 
77.5 	through distance education. Students who 
77.6 	successfully complete a course must receive 
77.7 	college credit at no cost to the student. The 
77.8 	office must report to the committees of the 
77.9 	legislature with responsibility for higher 
77.10 	education finance by January 15, 2009, on the 
77.11 	program outcomes with recommendations on 
77.12 	continuing and expanding the program. 
77.13 	(b) For Achieve scholarships under 
77.14 	Minnesota Statutes, section 136A.127.
77.15 	This appropriation includes $3,000,000 that 
77.16 	may be used in the 2008-2009 biennium 
77.17 	to support access to rigorous high school 
77.18 	courses and college attendance programs. 
77.19 	This includes, but is not limited to, College 
77.20 	in the Schools and Postsecondary Enrollment 
77.21 	Options, grants under the Intervention for 
77.22 	College Access Program, additional funding 
77.23 	for the Get Ready Program or local recipients 
77.24 	of federal TRIO program money, local 
77.25 	college access programs, and to increase 
77.26 	support for school districts to improve high 
77.27 	school counseling. 
77.28 	Up to $350,000 in the 2008-2009 biennium 
77.29 	may be used for administration of the 
77.30 	program. Up to $200,000 in the 2010-2011 
77.31 	biennium may be used for administration of 
77.32 	the program.
77.33 	The base funding for this program is 
77.34 	$10,000,000 in fiscal year 2010 and 
77.35 	$10,000,000 in fiscal year 2011.

78.1 	Sec. 16. Laws 2007, chapter 144, article 1, section 3, subdivision 18, is amended to 
78.2 	read:

78.3	Subd. 18. Transfers
 					
78.4 	The Minnesota Office of Higher Education 
78.5 	may transfer unencumbered balances from 
78.6 	the appropriations in this section to the 
78.7 	state grant appropriation, the interstate 
78.8 	tuition reciprocity appropriation, the 
78.9 	child care grant appropriation, the Indian 
78.10 	scholarship appropriation, the state work 
78.11 	study appropriation, the public safety officers' 
78.12 	survivors appropriation, and the Minnesota 
78.13 	college savings plan appropriation. Transfers 
78.14 	from the child care or state work study 
78.15 	appropriations may only be made to the 
78.16 	extent there is a projected surplus in the 
78.17 	appropriation. A transfer may be made 
78.18 	only with the prior written approval of the 
78.19 	commissioner of finance and prior written 
78.20 	notice to the chairs of the senate and house 
78.21 	committees with jurisdiction over higher 
78.22 	education finance. 

78.23 	Sec. 17. Laws 2007, chapter 144, article 1, section 5, subdivision 2, is amended to read:

78.24	Subd. 2. Operations and Maintenance
 		621,184,000 
		637,824,000 
	
78.25 	This appropriation includes funding for 
78.26 	operation and maintenance of the system 
78.27 	including amounts to advance the University 
78.28 	of Minnesota's efforts to sustain quality 
78.29 	and competitiveness; and funding for the 
78.30 	"Advancing Education" initiatives including 
78.31 	an Ojibwe Indian language program on the 
78.32 	Duluth campus. 
78.33 	This appropriation includes funding to 
78.34 	establish banded tuition at the Morris, 
79.1 	Crookston, and Duluth campuses to reduce 
79.2 	tuition costs for students. 
79.3 	This appropriation includes funding for 
79.4 	scholarships for undergraduate Minnesota 
79.5 	resident students with family income under 
79.6 	$150,000 per year. This appropriation must 
79.7 	be matched with $1.50 of nonstate money for 
79.8 	each $1 of state money. 
79.9 	This appropriation includes funding for the 
79.10 	Center for Transportation Studies to complete 
79.11 	a study to assess public policy options for 
79.12 	reducing the volume of greenhouse gases 
79.13 	emitted from the transportation sector in 
79.14 	Minnesota. The Center for Transportation 
79.15 	Studies must report its preliminary findings 
79.16 	to the legislature by February 1, 2008, and 
79.17 	must issue its full report by June 1, 2008. 
79.18 	This is a onetime appropriation. 
79.19 	This appropriation includes funding to 
79.20 	establish an India Center to improve and 
79.21 	promote relations with India and Southeast 
79.22 	Asia. The center must partner with public 
79.23 	and private organizations in Minnesota to: 
79.24 	(1) foster an understanding of the history, 
79.25 	culture, and values of India; 
79.26 	(2) serve as a resource and catalyst to 
79.27 	promote economic, governmental, and 
79.28 	academic pursuits involving India; and 
79.29 	(3) facilitate educational and business 
79.30 	exchanges and partnerships, collaborative 
79.31 	research, and teaching and training activities 
79.32 	for Minnesota students and teachers. 
79.33 	The Board of Regents may establish an 
79.34 	advisory council to facilitate the mission 
80.1 	and objectives of the India Center and must 
80.2 	report on the progress of the India Center 
80.3 	by February 15, 2008, to the governor 
80.4 	and chairs of the legislative committees 
80.5 	responsible for higher education finance. 
80.6 	This appropriation must be matched by an 
80.7 	equal amount of nonstate money. This is a 
80.8 	onetime appropriation. 
80.9 	This appropriation includes funding to assist 
80.10 	in the formation of the neighborhood alliance 
80.11 	and for projects identified in section 10. The 
80.12 	alliance, the Board of Regents, and the city of 
80.13 	Minneapolis may cooperate on the projects 
80.14 	and may use public services of other entities 
80.15 	to complete all or a portion of a project. This 
80.16 	is a onetime appropriation. 
80.17 	This appropriation includes funding to 
80.18 	establish a Dakota language teacher training 
80.19 	immersion program on the Twin Cities 
80.20 	campus to prepare teachers to teach in 
80.21 	Dakota language immersion programs. 
80.22 	OneTwo percent of the appropriation in 
80.23 	this subdivision for the second year is 
80.24 	available when the Board of Regents of the 
80.25 	University of Minnesota demonstrates to 
80.26 	the commissioner of finance that the board 
80.27 	has met at least three of the five following 
80.28 	performance goals: 
80.29 	(1) increase financial support to pay the cost 
80.30 	of attendance for students demonstrating 
80.31 	financial need; 
80.32 	(2) maintain or improve the University of 
80.33 	Minnesota's rank in its national share of 
80.34 	total research and development expenditures 
81.1 	reported to the National Science Foundation 
81.2 	over the 2007 ranking; 
81.3 	(3) increase by at least five percent, compared 
81.4 	to fiscal year 2007, the number of degrees 
81.5 	awarded in science, technology, engineering, 
81.6 	mathematics, and health sciences disciplines; 
81.7 	(4) increase by at least five percent, compared 
81.8 	to fiscal year 2007, the amount of financial 
81.9 	support from key funding sources for 
81.10 	renewable energy research; and 
81.11 	(5) increase and improve interaction and 
81.12 	research activity beneficial to business and 
81.13 	industry. 
81.14 	By October 1, 2007, the Board of Regents 
81.15 	and the Office of Higher Education must 
81.16 	agree on specific numerical indicators and 
81.17 	definitions for each of the five goals that will 
81.18 	be used to demonstrate the University of 
81.19 	Minnesota's attainment of each goal. 
81.20 	On or before April 1, 2008, the Board 
81.21 	of Regents must report to the legislative 
81.22 	committees with primary jurisdiction over 
81.23 	higher education finance and policy the 
81.24 	progress of the University of Minnesota 
81.25 	toward attaining the goals. 

81.26 	Sec. 18. GLOBAL MODELING OF HEALTH CARE REFORMS.
 81.27 	The University of Minnesota School of Public Health, health policy and management 
81.28 	division, must develop a model by November 30, 2008, that will assess the impact of 
81.29 	proposed health care reforms or major health care-related legislation on all sectors of 
81.30 	the health care system, including access to the full range of health care, public health, 
81.31 	public and private health insurance coverage, long-term and continuing care, programs 
81.32 	for persons with disabilities, social services, and other sectors related to Minnesotans' 
81.33 	health. The model must be:
82.1 	(1) developed with safeguards to make sure that the model and its assumptions and 
82.2 	formulas are based on valid and objective data, research, and expert opinions;
82.3 	(2) designed to enable policy makers and state agencies to enter into the model and 
82.4 	study each component of health care reform, including access to all aspects of health care 
82.5 	services, health care home, payment reforms, populationwide prevention, health status of 
82.6 	Minnesotans, and incidence of chronic disease;
82.7 	(3) capable of assessing the interaction of different legislative and policy changes 
82.8 	to determine the net affect on costs, access, and health status within sectors of the health 
82.9 	care system, and the net overall impact across all sectors;
82.10 	(4) designed to identify risks of unpredictable or unintended consequences, 
82.11 	cost-shifting between or within sectors of the health care system, and opportunities to 
82.12 	make changes in one sector that will produce a benefit to other sectors; and
82.13 	(5) capable of being adjusted based on both the proposed changes and the resulting 
82.14 	impact in the following areas:
82.15 	(i) access to all aspects of health care services;
82.16 	(ii) health status of Minnesotans, including the incidence of chronic disease, health 
82.17 	disparities, and risk factors such as obesity and smoking;
82.18 	(iii) utilization of preventive care services such as screenings, immunizations, and 
82.19 	physical examinations; and
82.20 	(iv) costs and cost distribution, including costs to individuals and families, 
82.21 	businesses, and government, including the total cost of health care, health-related services, 
82.22 	and social services.

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

82.24 	Sec. 19. USE OF MODELING TOOL.
 82.25 	(a) The University of Minnesota School of Public Health, health policy and 
82.26 	management division, must conduct an economic analysis of costs and benefits of various 
82.27 	health care reform proposals, including an analysis of the recommendations of the 
82.28 	Legislative Health Care Access Commission, the governor's transformation task force, 
82.29 	and a single statewide plan.
82.30 	(b) The analysis of each proposal should measure the impact on total public and 
82.31 	private health care spending in Minnesota that would result from each proposal, including 
82.32 	whether there are savings or additional costs due to:
82.33 	(1) increased or reduced insurance, billing, underwriting, marketing, and other 
82.34 	administrative functions;
82.35 	(2) timely and appropriate use of medical care;
83.1 	(3) market-driven or negotiated prices on medical services and products, including 
83.2 	pharmaceuticals;
83.3 	(4) a shortage or excess capacity of medical facilities and equipment;
83.4 	(5) increased utilization, better health outcomes, increased wellness due to 
83.5 	prevention, early intervention, and health-promoting activities;
83.6 	(6) increases or decreases in administrative expenses and health care expenses 
83.7 	due to payment reforms;
83.8 	(7) increases or decreases in administrative expenses and health care expenses due 
83.9 	to coordination of care;
83.10 	(8) increases or decreases in short-term and long-term utilization due to access to 
83.11 	comprehensive medically necessary benefits, including dental care, mental health care, 
83.12 	prescription drugs, and other health care; and
83.13 	(9) nonhealth care impacts on state and local expenditures such as reduced 
83.14 	out-of-home placement or crime costs due to mental health or chemical dependency 
83.15 	coverage.
83.16 	(c) The analysis must estimate for each proposal the number of Minnesotans without 
83.17 	access to health care, including those lacking access to certain types of medical care, such 
83.18 	as dental care, mental health care, and prescription drugs.

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

83.20 	Sec. 20.  REPEALER.
 83.21 	Minnesota Statutes 2007 Supplement, section 136A.127, is repealed.

83.22 	ARTICLE 10
83.23 	ENVIRONMENT AND NATURAL RESOURCES

83.24	Section 1. SUMMARY OF APPROPRIATIONS.
 	
83.25 	The amounts shown in this section summarize direct appropriations, by fund, made 
83.26 	in this article.

83.27			2008
		2009
		Total
	
83.28	General
	$
	(200,000)
	$
	(2,850,000)
	$
	(3,050,000)
	
83.29	Natural Resources
		-0-
		973,000
		973,000
	
83.30	Total
	$
	(200,000)
	$
	(1,877,000)
	$
	(2,077,000)

83.31	Sec. 2. APPROPRIATIONS.
 	
83.32 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
83.33 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 57, article 1, to 
84.1 	the agencies and for the purposes specified in this article. The appropriations are from the 
84.2 	general fund, or another named fund, and are available for the fiscal years indicated for 
84.3 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
84.4 	to or subtraction from the appropriation listed under them is available for the fiscal year 
84.5 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
84.6 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day 
84.7 	following final enactment. "The first year" is fiscal year 2008. "The second year" is fiscal 
84.8 	year 2009. "The biennium" is fiscal years 2008 and 2009.

84.9				APPROPRIATIONS
	
84.10				Available for the Year
	
84.11				Ending June 30
	
84.12					2008
		2009

84.13	Sec. 3. POLLUTION CONTROL AGENCY

84.14	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(473,000)
	
84.15 	The appropriation additions or reductions 
84.16 	for each purpose are shown in the following 
84.17 	subdivisions.

84.18	Subd. 2.Water
 		-0-
		(165,000)

84.19	Subd. 3.Multi Media
 		-0-
		(180,000)

84.20	Subd. 4.Administration
 		-0-
		(128,000)
	
84.21 	To reduce funding for agency operations.

84.22	Sec. 4. NATURAL RESOURCES

84.23	Subdivision 1.Total Appropriation
 	$
	(200,000)
	$
	(1,604,000)

84.24	Appropriations by Fund
	
84.25		2008
	2009
	
84.26	General
	(200,000)
	(2,577,000)
	
84.27	Natural Resources
	-0-
	973,000
	
84.28 	The appropriation additions or reductions 
84.29 	for each purpose are shown in the following 
84.30 	subdivisions.

84.31	Subd. 2.Lands and Minerals
 		-0-
		(541,000)
	
84.32 	$250,000 in 2009 is a reduction from the 
84.33 	appropriation for land asset management.
85.1 	$124,000 in 2009 is a reduction from the 
85.2 	appropriation for iron ore cooperative 
85.3 	agreements.
85.4 	$101,000 in 2009 is a reduction from the 
85.5 	appropriation for minerals diversification.
85.6 	$66,000 in 2009 is a reduction related to the 
85.7 	expedited land exchange process under new 
85.8 	Minnesota Statutes, section 94.3495.

85.9	Subd. 3.Water Resource Management
 		-0-
		(90,000)
	
85.10 	$22,000 in 2009 is a reduction from the 
85.11 	appropriation for ring dikes under Minnesota 
85.12 	Statutes, section 103F.161.
85.13 	$38,000 in 2009 is a reduction related to the 
85.14 	elimination of the reporting requirements 
85.15 	under Minnesota Statutes, section 103A.43, 
85.16 	paragraph (c).
85.17 	$30,000 is a reduction in 2009 from the 
85.18 	appropriation for grants associated with the 
85.19 	implementation of the Red River mediation 
85.20 	agreement.

85.21	Subd. 4.Forest Management
 		-0-
		53,000
	
85.22 	$53,000 in 2009 is for the Forest Resources 
85.23 	Council to conduct a study of options and 
85.24 	make recommendations to the legislature 
85.25 	for addressing the fragmentation and 
85.26 	parcelization of large blocks of private 
85.27 	forest land in the state. This is a onetime 
85.28 	appropriation.

85.29	Subd. 5.Parks and Recreation Management
 		-0-
		-0-
	
85.30 	$220,000 in 2009 is a reduction for parks and 
85.31 	recreation management.
85.32 	$220,000 in 2009 is from the state parks 
85.33 	account in the natural resources fund to 
86.1 	fund state park operations, maintenance, 
86.2 	resource management, educational services, 
86.3 	and associated support costs.

86.4	Subd. 6.Trails and Waterways Management
 		-0-
		135,000
	
86.5 	$150,000 in 2009 is from the all-terrain 
86.6 	vehicle account in the natural resources fund 
86.7 	for all-terrain vehicle trail rehabilitation.
86.8 	$50,000 in 2009 is a reduction from the 
86.9 	appropriation for nonmotorized trails. 
86.10 	$35,000 in 2009 is from the all-terrain 
86.11 	vehicle account in the natural resources fund 
86.12 	for all-terrain vehicle grants-in-aid.

86.13	Subd. 7.Fish and Wildlife Management
 		-0-
		(427,000)
	
86.14 	$329,000 in 2009 is a reduction for fish and 
86.15 	wildlife management.
86.16 	$46,000 in 2009 is a reduction in the 
86.17 	appropriation for the Minnesota Shooting 
86.18 	Sports Education Center.
86.19 	$52,000 in 2009 is a reduction for licensing.

86.20	Subd. 8.Ecological Services
 		(200,000)
		-0-
	
86.21 	$200,000 in 2008 is a reduction from the 
86.22 	appropriation for impaired waters.
86.23 	By June 30, 2008, the commissioner of 
86.24 	finance shall transfer $594,000 from the 
86.25 	water recreation account in the natural 
86.26 	resources fund to the invasive species 
86.27 	account in the natural resources fund for 
86.28 	invasive species-related expenses.

86.29	Subd. 9.Enforcement
 		-0-
		110,000
	
86.30 	$458,000 in 2009 is a reduction in 
86.31 	enforcement operations. $75,000 of 
86.32 	this reduction is for conservation officer 
86.33 	recruiting.
87.1 	$383,000 is from the water recreation 
87.2 	account in the natural resources fund for 
87.3 	enforcement operations.
87.4 	$185,000 is from the all-terrain vehicle 
87.5 	account in the natural resources fund for 
87.6 	grants to county law enforcement agencies 
87.7 	for all-terrain vehicle enforcement and public 
87.8 	education activities based on all-terrain 
87.9 	vehicle use in the county.

87.10	Subd. 10.General Reduction
 		-0-
		(844,000)
	
87.11 	The commissioner shall allocate the general 
87.12 	reduction among agency operations.

87.13
87.14	Sec. 5. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	-0-
	$
	200,000
	
87.15 	$100,000 in 2009 is a reduction from the 
87.16 	appropriation for county cooperative weed 
87.17 	management programs.
87.18 	$150,000 in 2009 is a reduction from the 
87.19 	appropriation for the drainage assistance 
87.20 	program.
87.21 	$450,000 in 2009 is for implementing 
87.22 	rehabilitation, erosion, and sediment 
87.23 	control projects in the area included in 
87.24 	DR-1717. This appropriation is available 
87.25 	until expended. 
87.26 	$100,000 in 2009 is for a grant to the Star 
87.27 	Lake Board established in new Minnesota 
87.28 	Statutes, section 103B.702. This is a onetime 
87.29 	appropriation.
87.30 	$100,000 in 2009 is a onetime general 
87.31 	reduction that the board shall allocate among 
87.32 	agency operations.

87.33	Sec. 6. TRANSFERS IN
 					
88.1 	By June 30, 2008, the commissioner 
88.2 	of finance shall transfer any remaining 
88.3 	unappropriated balance, estimated to be 
88.4 	$101,000, from the Minnesota future 
88.5 	resources fund to the general fund.
88.6 	By June 30, 2008, the commissioner of 
88.7 	finance shall transfer $1,400,000 from 
88.8 	the balance in the stream protection and 
88.9 	improvement fund to the general fund.

88.10 	Sec. 7. [94.3495] EXPEDITED EXCHANGES OF LAND INVOLVING THE 
88.11 	STATE AND GOVERNMENTAL SUBDIVISIONS OF THE STATE.
88.12 		Subdivision 1.Purpose and scope. (a) The purpose of this section is to expedite the 
88.13 	exchange of public land ownership. Consolidation of public land reduces management 
88.14 	costs and aids in the reduction of forest fragmentation.
88.15 	(b) This section applies to exchanges of land between the state and a governmental 
88.16 	subdivision of the state. For land exchanges under this section, sections 94.342 to 94.347 
88.17 	apply only to the extent specified in this section.
88.18 		Subd. 2.Classes of land; definitions. The classes of public land that may be 
88.19 	involved in an expedited exchange under this section are:
88.20 	(1) Class 1 land, which for the purpose of this section is Class A land as defined in 
88.21 	section 94.342, subdivision 1, except for:
88.22 	(i) school trust land as defined in section 92.025; and
88.23 	(ii) university land granted to the state by acts of Congress;
88.24 	(2) Class 2 land, which for the purpose of this section is Class B land as defined in 
88.25 	section 94.342, subdivision 2; and
88.26 	(3) Class 3 land, which for the purpose of this section is all land owned in fee by 
88.27 	a governmental subdivision of the state.
88.28 		Subd. 3.Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land, 
88.29 	the value of all the land shall be determined by the commissioner of natural resources. In 
88.30 	an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined 
88.31 	by the county board of the county in which the land lies. To determine the value of the 
88.32 	land, the parties to the exchange may cause the land to be appraised, utilize the valuation 
88.33 	process provided under section 84.0272, subdivision 3, or obtain a market analysis from a 
88.34 	qualified real estate broker. Merchantable timber value must be determined and considered 
88.35 	in finalizing valuation of the lands.
89.1 	(b) All lands exchanged under this section shall be exchanged only for lands of 
89.2 	at least substantially equal value. For the purposes of this subdivision, "substantially 
89.3 	equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b). 
89.4 	No payment is due either party if the lands are of substantially equal value but are not 
89.5 	of the same value.
89.6 		Subd. 4.Title. Title to the land must be examined to the extent necessary for the 
89.7 	parties to determine that the title is good, with any encumbrances identified. The parties to 
89.8 	the exchange may utilize title insurance to aid in the determination.
89.9 		Subd. 5.Approval by Land Exchange Board. All expedited land exchanges 
89.10 	under this section, and the terms and conditions of the exchanges, require the unanimous 
89.11 	approval of the Land Exchange Board.
89.12 		Subd. 6.Conveyance. (a) Conveyance of Class 1 land given in exchange shall be 
89.13 	made by deed executed by the commissioner of natural resources in the name of the 
89.14 	state. Conveyance of Class 2 land given in exchange shall be by a deed executed by the 
89.15 	commissioner of revenue in the name of the state. Conveyance of Class 3 land shall be by 
89.16 	a deed executed by the governing body in the name of the governing authority.
89.17 	(b) If Class 1 land is given in exchange for Class 2 or 3 land, the deed to the Class 
89.18 	2 or 3 land shall first be delivered to the commissioner of natural resources. Following 
89.19 	the recording of the deed, the commissioner of natural resources shall deliver the deed 
89.20 	conveying the Class 1 land.
89.21 	(c) If Class 2 land is given in exchange for Class 3 land, the deed to the Class 3 land 
89.22 	shall first be delivered to the county auditor. Following the recording of the deed, the 
89.23 	commissioner of revenue shall deliver the deed conveying the Class 2 land.
89.24 	(d) All deeds shall be recorded or registered in the county in which the lands lie.
89.25 		Subd. 7.Reversionary interest; mineral and water power rights and other 
89.26 	reservations. (a) All deeds conveying land given in an expedited land exchange under 
89.27 	this section shall include a reverter that provides that title to the land automatically reverts 
89.28 	to the conveying governmental unit if:
89.29 	(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of 
89.30 	the land within 40 years of the date of the deed conveying ownership; and
89.31 	(2) there is no prior written approval for the transfer from the conveying 
89.32 	governmental unit. The authority for granting approval is the commissioner of natural 
89.33 	resources for former Class 1 land, the county board for former Class 2 land, and the 
89.34 	governing body for former Class 3 land.
89.35 	(b) Class 1 land given in exchange is subject to the reservation provisions of section 
89.36 	94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation 
90.1 	provisions of section 94.344, subdivision 4. County fee land given in exchange is subject 
90.2 	to the reservation provisions of section 373.01, subdivision 1, paragraph (g).
90.3 		Subd. 8.Land status. Land received in exchange for Class 1 land is subject to the 
90.4 	same trust, if any, and otherwise has the same status as the land given in exchange. Land 
90.5 	received in exchange for Class 2 land is subject to a trust in favor of the governmental 
90.6 	subdivision wherein it lies and all laws relating to tax-forfeited land. Land received in 
90.7 	exchange for Class 3 land has the same status as the land given in exchange.

90.8 	Sec. 8. Minnesota Statutes 2006, section 97A.045, subdivision 11, is amended to read:
90.9 		Subd. 11.Power to prevent or control wildlife disease. (a) If the commissioner 
90.10 	determines that action is necessary to prevent or control a wildlife disease, the 
90.11 	commissioner may prevent or control wildlife disease in a species of wild animal in 
90.12 	addition to the protection provided by the game and fish laws by further limiting, closing, 
90.13 	expanding, or opening seasons or areas of the state; by reducing or increasing limits in 
90.14 	areas of the state; by establishing disease management zones; by authorizing free licenses; 
90.15 	by allowing shooting from motor vehicles by persons designated by the commissioner; 
90.16 	by issuing replacement licenses for sick animals; by requiring sample collection from 
90.17 	hunter-harvested animals; by limiting wild animal possession, transportation, and 
90.18 	disposition; and by restricting wildlife feeding.
90.19 	(b) The commissioner shall restrict wildlife feeding within a 15-mile 30-mile radius 
90.20 	of a cattle herd that is infected with bovine tuberculosis. In addition to any other penalties 
90.21 	provided by law, a person who violates a law restricting wildlife feeding within a bovine 
90.22 	tuberculosis management zone may not obtain a hunting license to take a wild animal 
90.23 	for two years after the date of conviction.
90.24 	(c) The commissioner may prevent or control wildlife disease in a species of wild 
90.25 	animal in the state by emergency rule adopted under section 84.027, subdivision 13. 

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

90.27 	Sec. 9. [97A.056] OUTDOOR HERITAGE FUND; LESSARD-HERITAGE 
90.28 	ENHANCEMENT COUNCIL.
90.29 		Subdivision 1.Outdoor heritage fund. (a) The outdoor heritage fund is established 
90.30 	in the Minnesota Constitution, article XI, section 15. All money earned by the outdoor 
90.31 	heritage fund must be credited to the fund. At least 97 percent of the money appropriated 
90.32 	from the fund must be spent on specific fish, wildlife, habitat, and land conservation 
90.33 	projects.
91.1 	(b) A forest fragmentation and consolidation account is created within the 
91.2 	outdoor heritage fund. From the receipts deposited in the fund under the Minnesota 
91.3 	Constitution, article XI, section 15, 20 percent each fiscal year must be credited to the 
91.4 	forest fragmentation and consolidation account. Money in the account may be spent only 
91.5 	for the acquisition of permanent easements on private forest land or for the acquisition of 
91.6 	land for forest consolidation. The conservation easements must guarantee public access, 
91.7 	including, but not limited to, hunting and fishing access.
91.8 	(c) A conservation partners account is created within the outdoor heritage fund. 
91.9 	From the receipts deposited in the fund under the Minnesota Constitution, article XI, 
91.10 	section 15, 20 percent each year must be credited to the conservation partners account. 
91.11 	Money in the account may be spent only for matching grants of up to $250,000 to local 
91.12 	sporting and wildlife conservation clubs for the improvement of fish, game, and wildlife 
91.13 	habitat conservation.
91.14 		Subd. 2.Lessard-Heritage Enhancement Council. (a) The Lessard-Heritage 
91.15 	Enhancement Council of 16 members is created in the legislative branch, consisting of:
91.16 	(1) three members of the senate appointed by the senate Subcommittee on 
91.17 	Committees of the Committee on Rules and Administration;
91.18 	(2) three members of the house of representatives appointed by the speaker of the 
91.19 	house;
91.20 	(3) three public members representing hunting, fishing, and wildlife habitat 
91.21 	conservation stakeholders appointed by the senate Subcommittee on Committees of the 
91.22 	Committee on Rules and Administration;
91.23 	(4) three public members representing hunting, fishing, and wildlife habitat 
91.24 	conservation stakeholders appointed by the speaker of the house; and
91.25 	(5) four public members representing hunting, fishing, and wildlife habitat 
91.26 	conservation stakeholders appointed by the governor.
91.27 	(b) One member from the senate and one member from the house of representatives 
91.28 	must be from the minority caucus.
91.29 	(c) At least one public member appointed by the speaker of the house and one public 
91.30 	member appointed by the senate Subcommittee on Committees of the Committee on Rules 
91.31 	and Administration must be a woman. At least two of the public members appointed 
91.32 	by the governor must be women. At least one of the public members appointed by the 
91.33 	governor must be an ethnic minority. Appointing authorities shall consider geographic 
91.34 	balance in making appointments under this section.
91.35 	(d) The public members appointed and recommended to the appointing authorities 
91.36 	according to subdivision 3 must:
92.1 	(1) have experience or expertise in the science, policy, or practice of preservation, 
92.2 	enhancement, and protection of the state's fish, game, and wildlife habitat;
92.3 	(2) have strong knowledge in the state's fish, game, and wildlife habitat conservation 
92.4 	issues around the state; and
92.5 	(3) have demonstrated the ability to work in a collaborative environment.
92.6 	(e) A public member may be removed by an appointing authority for cause.
92.7 	(f) Citizen members serve four-year terms and shall be initially appointed according 
92.8 	to the following schedule of terms:
92.9 	(1) two members appointed by the governor for a term ending the first Monday in 
92.10 	January 2013;
92.11 	(2) two members appointed by the senate Subcommittee on Committees of the 
92.12 	Committee on Rules and Administration for a term ending the first Monday in January 
92.13 	2013, and two members appointed by the speaker of the house for a term ending the first 
92.14 	Monday in January 2013;
92.15 	(3) one member appointed by the governor for a term ending the first Monday in 
92.16 	January 2012;
92.17 	(4) one member appointed by the senate Subcommittee on Committees of the 
92.18 	Committee on Rules and Administration for a term ending the first Monday in January 
92.19 	2012, and one member appointed by the speaker of the house for a term ending the first 
92.20 	Monday in January 2012; and
92.21 	(5) one member appointed by the governor for a term ending the first Monday in 
92.22 	January 2011.
92.23 	(g) Legislative members are entitled to reimbursement for per diem expenses plus 
92.24 	travel expenses incurred in the services of the council. The removal and, beginning July 1, 
92.25 	2009, the compensation of public members is as provided in section 15.0575.
92.26 	(h) The first meeting of the council shall be convened by the chair of the Legislative 
92.27 	Coordinating Commission. Members shall elect a chair, vice chair, secretary, and other 
92.28 	officers as determined by the council. The chair may convene meetings as necessary to 
92.29 	conduct the duties prescribed by this section.
92.30 	(i) Legislative membership terms are at the pleasure of the appointing authority, 
92.31 	except that members shall serve on the council until their successors are appointed.
92.32 	(j) The governor's appointments to the council are subject to the advice and consent 
92.33 	of the senate.
92.34 	(k) Vacancies occurring on the council do not affect the authority of the remaining 
92.35 	members of the council to carry out their duties.
93.1 	(l) In addition to the appointments in paragraph (a), each appointing authority shall 
93.2 	appoint one nonvoting member under the age of 18.
93.3 		Subd. 3.Citizen selection committee. (a) The governor shall appoint an Outdoor 
93.4 	Heritage Fund Citizen Selection Committee of five members who come from different 
93.5 	regions of the state and represent hunting and fishing stakeholders. The duties of the 
93.6 	Outdoor Heritage Enhancement Fund Citizen Selection Committee shall be to:
93.7 	(1) identify citizen candidates to be public members of the council, as part of the 
93.8 	open appointments process under section 15.0597;
93.9 	(2) request and review citizen candidate applications to be members of the council; 
93.10 	and
93.11 	(3) interview the citizen candidates and recommend an adequate pool of candidates 
93.12 	to be selected for council membership by the governor, the senate, and the house of 
93.13 	representatives. Compensation of members is as provided in section 15.0575.
93.14 	(b) The Outdoor Heritage Enhancement Fund Citizen Selection Committee shall 
93.15 	give strong consideration to recommending candidates under the age of 30.
93.16 		Subd. 4.Strategic plan required. (a) The council shall adopt a strategic plan for 
93.17 	making expenditures from the outdoor heritage fund, including identifying the priority 
93.18 	areas for funding for the next six years. The strategic plan must be reviewed every two 
93.19 	years. The strategic plan must have clearly stated short-term and long-term goals and 
93.20 	strategies for outdoor heritage fund expenditures, must provide measurable outcomes for 
93.21 	expenditures, and must determine areas of emphasis for funding.
93.22 	(b) The council shall consider the long-term strategic plans of agencies with 
93.23 	environment and natural resource programs and responsibilities and plans of fish, game, 
93.24 	and wildlife conservation organizations during the development and review of the 
93.25 	strategic plan.
93.26 		Subd. 5.Duties of council. (a) The council, in consultation with statewide and local 
93.27 	fishing, hunting, wildlife, forestry, agriculture, and land conservation groups, shall develop 
93.28 	a biennial budget plan to recommend expenditures from the outdoor heritage fund to the 
93.29 	legislature and the governor. Approval of the biennial budget plan for the outdoor heritage 
93.30 	fund requires an affirmative vote of at least 11 members of the council.
93.31 	(b) In the biennial budget submitted to the legislature, the governor shall submit 
93.32 	separate budget detail for planned expenditures from the outdoor heritage fund as 
93.33 	recommended by the council.
93.34 	(c) As a condition of acceptance of an appropriation from the outdoor heritage fund, 
93.35 	an agency or entity receiving an appropriation shall submit a work program and quarterly 
94.1 	progress reports for appropriations from the outdoor heritage fund to the members of the 
94.2 	Lessard-Heritage Enhancement Council in the form determined by the council.
94.3 		Subd. 6.Council administration. (a) The council may employ personnel and 
94.4 	contract with consultants as necessary to carry out the functions and duties of the council. 
94.5 	Permanent employees shall be in the unclassified service. The council may request staff 
94.6 	assistance, legal opinion, and data from agencies of state government as needed for the 
94.7 	execution of the responsibilities of the council.
94.8 	(b) Beginning July 1, 2009, the administrative expenses of the council shall be paid 
94.9 	from the outdoor heritage fund, as appropriated by law.
94.10 	(c) A council member or an employee of the council may not participate in or vote 
94.11 	on a decision of the council relating to an organization in which the member or employee 
94.12 	has either a direct or indirect personal financial interest. While serving on or employed by 
94.13 	the council, a person shall avoid any potential conflict of interest.
94.14 		Subd. 7.Open meetings. (a) Meetings of the council and other groups the council 
94.15 	may establish must be open to the public. Except where prohibited by law, the council 
94.16 	shall establish additional processes to broaden public involvement in all aspects of its 
94.17 	deliberations. For the purposes of this subdivision, a meeting occurs when a quorum is 
94.18 	present and action is taken regarding a matter within the jurisdiction of the council.
94.19 	(b) For legislative members of the council, enforcement of this subdivision shall 
94.20 	be governed by section 3.055, subdivision 2. For nonlegislative members of the council, 
94.21 	enforcement of this subdivision shall be governed by section 13D.06, subdivisions 1 and 2.

94.22 	EFFECTIVE DATE. This section is effective November 15, 2008, if the 
94.23 	constitutional amendment proposed in Laws 2008, chapter 151, is adopted by the voters.

94.24 	Sec. 10. Minnesota Statutes 2006, section 103A.43, is amended to read:
94.25 	103A.43 WATER ASSESSMENTS AND REPORTS.
94.26 	(a) The Environmental Quality Board shall evaluate and report to the house of 
94.27 	representatives and senate committees with jurisdiction over the environment, natural 
94.28 	resources, and agriculture and the Legislative-Citizen Commission on Minnesota 
94.29 	Resources on statewide water research needs and recommended priorities for addressing 
94.30 	these needs. Local water research needs may also be included.
94.31 	(b) The Environmental Quality Board shall work with the Pollution Control Agency 
94.32 	and the Department of Agriculture to coordinate a biennial assessment and analysis of 
94.33 	water quality, groundwater degradation trends, and efforts to reduce, prevent, minimize, 
95.1 	and eliminate degradation of water. The assessment and analysis must include an analysis 
95.2 	of relevant monitoring data.
95.3 	(c) The Environmental Quality Board shall work with the Department of Natural 
95.4 	Resources to coordinate an assessment and analysis of the quantity of surface and ground 
95.5 	water in the state and the availability of water to meet the state's needs.
95.6 	(d) (c) The Environmental Quality Board shall coordinate and submit a report 
95.7 	on water policy including the analyses in paragraphs (a) to (c) and (b) to the house of 
95.8 	representatives and senate committees with jurisdiction over the environment, natural 
95.9 	resources, and agriculture and the Legislative-Citizen Commission on Minnesota 
95.10 	Resources by September 15 of each even-numbered year. The report may include the 
95.11 	groundwater policy report in section 103A.204. 

95.12 	Sec. 11. [103B.701] STAR LAKES.
95.13 		Subdivision 1.Definition. For the purposes of this section, the term "lake 
95.14 	association" means an association organized for the purpose of addressing issues on a 
95.15 	specific lake or river, a lake improvement district, or a lake conservation district.
95.16 		Subd. 2.Application. (a) A lake association may apply to the Star Lake Board for 
95.17 	designation as a star lake or river. The applicant must include a copy of a star lake or 
95.18 	river management plan for the lake or river.
95.19 	(b) After review of the application, the Star Lake Board shall determine whether 
95.20 	designation as a star lake or river will be granted. The designation as a star lake or river 
95.21 	becomes effective the day following designation by the board. The board shall publish the 
95.22 	decision on a star lake or river designation in the State Register, including the effective 
95.23 	date of the designation.
95.24 	(c) The star lake or river designation is effective until the earlier of:
95.25 	(1) five years after the date of designation; or
95.26 	(2) when the Star Lake Board finds that the lake association is not fulfilling the 
95.27 	requirements of this section or of the star lake or river management plan submitted.
95.28 	(d) Within six months before the expiration date of the designation as a star lake 
95.29 	or river, a lake association may apply to continue the star lake or river designation under 
95.30 	this section.
95.31 		Subd. 3.Eligibility. A lake association applying for designation as a star lake 
95.32 	or river must:
95.33 	(1) develop and update a star lake or river management plan as provided in 
95.34 	subdivision 4;
96.1 	(2) maintain a membership or participation of at least 50 percent of the private 
96.2 	shoreland owners;
96.3 	(3) participate in a water quality monitoring program under section 115.06, 
96.4 	subdivision 4, or other programs meeting Pollution Control Agency standards; and
96.5 	(4) meet at least annually to review the plan and notify appropriate state agencies 
96.6 	and local government units in the development and monitoring of the star lake or river 
96.7 	management plan.
96.8 		Subd. 4.Star lake or river management plan. (a) A star lake or river management 
96.9 	plan must contain a baseline of the current condition of the lake or river based on scientific 
96.10 	information and plans for addressing the following issues:
96.11 	(1) increases in native vegetation in the littoral area of the lake or river, where 
96.12 	appropriate;
96.13 	(2) increases in native vegetation on the shoreline areas of the lake or river, where 
96.14 	appropriate;
96.15 	(3) prevention, reduction, or elimination of aquatic invasive species in the lake 
96.16 	or river;
96.17 	(4) increasing or maintaining a healthy diverse fishery that is appropriate for the 
96.18 	lake or river;
96.19 	(5) how the association will work with state agencies and local government units to 
96.20 	identify water pollution sources and impairments;
96.21 	(6) how the association will assist state and local programs to generate data needed 
96.22 	by state agencies and local government units in an appropriate format;
96.23 	(7) promoting compliance with adopted shoreland zoning standards and shoreland 
96.24 	best management practices;
96.25 	(8) how the lake association will assure its involvement in public input opportunities 
96.26 	for various local comprehensive and project-specific planning and zoning processes;
96.27 	(9) education and recognition opportunities for shoreland owners and other entities 
96.28 	that conduct activities affecting the quality of the lake or river; and
96.29 	(10) other activities that will coordinate with or enhance other state and local water 
96.30 	management efforts.
96.31 	(b) The star lake or river management plan shall be updated within five years of 
96.32 	adoption by the lake association.
96.33 		Subd. 5.State resources. State agencies may consider star lake or river designation 
96.34 	in determining the allocation of financial and staff resources.

96.35 	Sec. 12. [103B.702] STAR LAKE BOARD.
97.1 		Subdivision 1.Establishment. (a) The Star Lake Board shall be established as a 
97.2 	nonprofit corporation under section 501(c)(3) of the Internal Revenue Code of 1986, 
97.3 	as amended. The Star Lake Board shall promote and designate star lakes and rivers in 
97.4 	Minnesota under section 103B.701.
97.5 	(b) The board must work with private and public entities to leverage the resources 
97.6 	available to achieve and sustain the designation of Minnesota star lakes or rivers. The 
97.7 	board may assist lake associations with finding appropriate technical and financial 
97.8 	assistance and make recommendations to state agencies and local government units 
97.9 	regarding the manner in which technical or financial assistance can be most effectively 
97.10 	delivered. To the extent that money is available, the board may secure, provide, or 
97.11 	recommend financial assistance to meet specific needs of lake associations, for:
97.12 	(1) completing a star lake or river management plan when the lake association does 
97.13 	not have an existing management plan and the association is committed to the goals of a 
97.14 	plan, as specified in section 103B.701, subdivision 4; and
97.15 	(2) addressing specific issues of the lake or river to achieve or maintain the goals 
97.16 	of the lake or river management plan for lake associations that have achieved a star lake 
97.17 	or river designation.
97.18 	(c) The board shall consist of:
97.19 	(1) one member designated by Minnesota Waters;
97.20 	(2) one member designated by the North Central Lakes Collaborative;
97.21 	(3) five members, chosen by the other board members with regard to obtaining 
97.22 	representation from a variety of types of lakes and rivers within the state, who are from 
97.23 	lake associations representing designated star lakes or rivers, or until July 1, 2011, are 
97.24 	eligible to achieve star lake or river designation; 
97.25 	(4) one member designated by the commissioner of natural resources;
97.26 	(5) one member designated by the commissioner of the Pollution Control Agency;
97.27 	(6) one member designated by the chair of the Board of Water and Soil Resources;
97.28 	(7) one member designated by the Indian Affairs Council;
97.29 	(8) one member designated by the Association of Minnesota Counties;
97.30 	(9) one member designated by the Minnesota Inter-County Association; and
97.31 	(10) one member designated by the League of Minnesota Cities.
97.32 	(d) By January 15 of each odd-numbered year, the board shall submit a report to the 
97.33 	chairs and ranking minority members of the legislative committees and divisions with 
97.34 	jurisdiction over environment policy and finance on the activities for which money has 
97.35 	been or will be spent for the current biennium, the applications for designation, and the 
97.36 	star lakes or rivers designated by the board.
98.1 		Subd. 2.Conflict of interest. A board member may not participate in or vote on a 
98.2 	decision of the board relating to an organization in which the member has either a direct 
98.3 	or indirect personal financial interest. While serving on the Star Lake Board, a member 
98.4 	shall avoid any potential conflict of interest.
98.5 		Subd. 3.Staff; contracts. The board may hire staff or enter into contracts to carry 
98.6 	out the activities of the board.
98.7 		Subd. 4.Bylaws. The board shall adopt bylaws necessary for the conduct of the 
98.8 	business of the board consistent with this section. The corporation must publish bylaws 
98.9 	and amendments to the bylaws in the State Register.
98.10 		Subd. 5.Place of business. The board shall locate and maintain the board's place of 
98.11 	business within the state.
98.12 		Subd. 6.Chair. The board shall annually elect from among its members a chair and 
98.13 	other officers necessary for the performance of its duties.
98.14 		Subd. 7.Meetings. The board shall meet at least twice each year and may hold 
98.15 	additional meetings upon giving notice in accordance with the bylaws of the board. Board 
98.16 	meetings are subject to chapter 13D.
98.17 		Subd. 8.Funds. The board may accept and use gifts, grants, or contributions from 
98.18 	any source. Unless otherwise restricted by the terms of a gift or bequest, the board may 
98.19 	sell, exchange, or otherwise dispose of and invest or reinvest the money, securities, or other 
98.20 	property given or bequested to it. The principal of these funds, the income from them, and 
98.21 	all other revenues received by the board from any nonstate source must be placed in the 
98.22 	depositories the board determines and is subject to expenditure for the board's purposes.
98.23 		Subd. 9.Accounts; audits. The board may establish funds and accounts necessary 
98.24 	to carry out its responsibilities. The board shall provide for and pay the cost of an 
98.25 	independent audit of its official books and records by the legislative auditor subject to 
98.26 	sections 3.971 and 3.972. A copy of this audit shall be filed with the secretary of state.

98.27 	Sec. 13. Minnesota Statutes 2006, section 103G.271, subdivision 6, is amended to read:
98.28 		Subd. 6.Water use permit processing fee. (a) Except as described in paragraphs 
98.29 	(b) to (f), a water use permit processing fee must be prescribed by the commissioner in 
98.30 	accordance with the schedule of fees in this subdivision for each water use permit in force 
98.31 	at any time during the year. The schedule is as follows, with the stated fee in each clause 
98.32 	applied to the total amount appropriated:
98.33 	(1) $101 $140 for amounts not exceeding 50,000,000 gallons per year;
98.34 	(2) $3 $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons 
98.35 	but less than 100,000,000 gallons per year;
99.1 	(3) $3.50 $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons 
99.2 	but less than 150,000,000 gallons per year;
99.3 	(4) $4 $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons 
99.4 	but less than 200,000,000 gallons per year;
99.5 	(5) $4.50 $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons 
99.6 	but less than 250,000,000 gallons per year;
99.7 	(6) $5 $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons 
99.8 	but less than 300,000,000 gallons per year;
99.9 	(7) $5.50 $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons 
99.10 	but less than 350,000,000 gallons per year;
99.11 	(8) $6 $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons 
99.12 	but less than 400,000,000 gallons per year;
99.13 	(9) $6.50 $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons 
99.14 	but less than 450,000,000 gallons per year;
99.15 	(10) $7 $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons 
99.16 	but less than 500,000,000 gallons per year; and
99.17 	(11) $7.50 $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons 
99.18 	per year.
99.19 	(b) For once-through cooling systems, a water use processing fee must be prescribed 
99.20 	by the commissioner in accordance with the following schedule of fees for each water use 
99.21 	permit in force at any time during the year:
99.22 	(1) for nonprofit corporations and school districts, $150 $200 per 1,000,000 gallons; 
99.23 	and
99.24 	(2) for all other users, $300 $420 per 1,000,000 gallons.
99.25 	(c) The fee is payable based on the amount of water appropriated during the year 
99.26 	and, except as provided in paragraph (f), the minimum fee is $100.
99.27 	(d) For water use processing fees other than once-through cooling systems:
99.28 	(1) the fee for a city of the first class may not exceed $250,000 per year;
99.29 	(2) the fee for other entities for any permitted use may not exceed:
99.30 	(i) $50,000 per year for an entity holding three or fewer permits;
99.31 	(ii) $75,000 per year for an entity holding four or five permits;
99.32 	(iii) $250,000 per year for an entity holding more than five permits;
99.33 	(3) the fee for agricultural irrigation may not exceed $750 per year;
99.34 	(4) the fee for a municipality that furnishes electric service and cogenerates steam 
99.35 	for home heating may not exceed $10,000 for its permit for water use related to the 
99.36 	cogeneration of electricity and steam; and
100.1 	(5) no fee is required for a project involving the appropriation of surface water to 
100.2 	prevent flood damage or to remove flood waters during a period of flooding, as determined 
100.3 	by the commissioner.
100.4 	(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two 
100.5 	percent per month calculated from the original due date must be imposed on the unpaid 
100.6 	balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 
100.7 	may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal 
100.8 	governmental agency holding a water appropriation permit.
100.9 	(f) The minimum water use processing fee for a permit issued for irrigation of 
100.10 	agricultural land is $20 for years in which:
100.11 	(1) there is no appropriation of water under the permit; or
100.12 	(2) the permit is suspended for more than seven consecutive days between May 1 
100.13 	and October 1.
100.14 	(g) A surcharge of $20 per million gallons in addition to the fee prescribed in 
100.15 	paragraph (a) shall be applied to the volume of water used in each of the months of June, 
100.16 	July, and August that exceeds the volume of water used in January for municipal water 
100.17 	use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 
100.18 	with more than one permit shall be determined based on the total appropriations from all 
100.19 	permits that supply a common distribution system.

100.20 	Sec. 14. [173.0855] STAR LAKE OR RIVER SIGNS.
100.21 		Subdivision 1.Authority to erect. (a) A county, statutory or home rule charter city, 
100.22 	or town of Minnesota that contains a star lake or river designated under section 103B.701 
100.23 	may request the Department of Transportation to erect star lake or river signs pursuant 
100.24 	to section 161.139. One sign may be erected at each approach to a lake or river within 
100.25 	the right-of-way of an interstate or other highway that passes over a lake or river in the 
100.26 	Department of Transportation's eight-county metropolitan district or near or over a lake or 
100.27 	river in greater Minnesota.
100.28 	(b) An official lake or river sign on the right-of-way of an interstate or other highway 
100.29 	may be replaced with a star lake or river sign by the Department of Transportation 
100.30 	pursuant to section 161.139.
100.31 		Subd. 2.Sign standards. The Department of Transportation shall design and 
100.32 	manufacture the star lake and river signs to specifications not contrary to other federal 
100.33 	and state highway sign standards.

100.34 	Sec. 15. Laws 2007, chapter 57, article 1, section 4, subdivision 4, is amended to read:

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

101.2	Appropriations by Fund 
	
101.3	General 
	24,755,000 
	24,836,000 
	
101.4	Natural Resources 
	19,483,000 
	18,293,000 
	
101.5	Game and Fish 
	257,000 
	264,000 
	
101.6 	$7,217,000 the first year and $7,217,000 
101.7 	the second year are for prevention, 
101.8 	presuppression, and suppression costs of 
101.9 	emergency firefighting and other costs 
101.10 	incurred under Minnesota Statutes, section 
101.11 	88.12. If the appropriation for either 
101.12 	year is insufficient to cover all costs of 
101.13 	presuppression and suppression, the amount 
101.14 	necessary to pay for these costs during the 
101.15 	biennium is appropriated from the general 
101.16 	fund. 
101.17 	By November 15 of each year, the 
101.18 	commissioner of natural resources shall 
101.19 	submit a report to the chairs of the house 
101.20 	and senate committees and divisions having 
101.21 	jurisdiction over environment and natural 
101.22 	resources finance, identifying all firefighting 
101.23 	costs incurred and reimbursements received 
101.24 	in the prior fiscal year. These appropriations 
101.25 	may not be transferred. Any reimbursement 
101.26 	of firefighting expenditures made to the 
101.27 	commissioner from any source other than 
101.28 	federal mobilizations shall be deposited into 
101.29 	the general fund. 
101.30 	$17,983,000 the first year and $18,293,000 
101.31 	the second year are from the forest 
101.32 	management investment account in the 
101.33 	natural resources fund for only the purposes 
101.34 	specified in Minnesota Statutes, section 
101.35 	89.039, subdivision 2. 
102.1 	Of this amount: 
102.2 	(1) $750,000 each year is for additional staff 
102.3 	to enhance timber sales; 
102.4 	(2) $1,000,000 each year is for forest 
102.5 	improvements; 
102.6 	(3) $1,100,000 each year is for forest road 
102.7 	maintenance; 
102.8 	(4) $600,000 each year is for the ecological 
102.9 	classification system on state forest lands; 
102.10 	(5) $350,000 each year is for the prevention 
102.11 	of invasive species on state forest lands; and 
102.12 	(6) $400,000 each year is for the re-inventory 
102.13 	of state forest lands. 
102.14 	Money for forest road maintenance is 
102.15 	onetime. 
102.16 	$780,000 the first year and $780,000 the 
102.17 	second year are for the Forest Resources 
102.18 	Council for implementation of the 
102.19 	Sustainable Forest Resources Act. 
102.20 	$40,000 the first year is for the Forest 
102.21 	Resources Council to provide a grant to 
102.22 	the University of Minnesota to prepare a 
102.23 	statewide plan to address the fragmentation 
102.24 	and parcelization of large blocks of forest 
102.25 	land in the state. 
102.26 	$200,000 in fiscal year 2008 is for a grant 
102.27 	to the Forest Resources Research Advisory 
102.28 	Committee to provide direction on research 
102.29 	topics recommended by the governor's task 
102.30 	force on the competitiveness of Minnesota's 
102.31 	primary forest products industry. 
102.32 	$350,000 the first year and $350,000 the 
102.33 	second year are for the FORIST timber 
103.1 	management information system, other 
103.2 	information systems, and for increased 
103.3 	forestry management. The amount in the 
103.4 	second year is also available in the first year. 
103.5 	$257,000 the first year and $264,000 the 
103.6 	second year are from the game and fish 
103.7 	fund to implement ecological classification 
103.8 	systems (ECS) standards on forested 
103.9 	landscapes. This appropriation is from 
103.10 	revenue deposited in the game and fish fund 
103.11 	under Minnesota Statutes, section 297A.94, 
103.12 	paragraph (e), clause (1). 
103.13 	$110,000 the first year is to develop and 
103.14 	implement a statewide information and 
103.15 	education campaign regarding the statewide 
103.16 	ban on the transport, storage, or use of 
103.17 	nonapproved firewood on state-administered 
103.18 	lands. 
103.19 	$1,500,000 the first year is from the forest 
103.20 	management investment account in the 
103.21 	natural resources fund for the purposes of 
103.22 	section 158. This is a onetime appropriation. 
103.23 	$75,000 the first year is to the Forest 
103.24 	Resources Council for a task force on 
103.25 	forest protection and $75,000 the second 
103.26 	year is appropriated to the commissioner 
103.27 	for grants to cities, counties, townships, 
103.28 	special recreation areas, and park and 
103.29 	recreation boards in cities of the first class 
103.30 	for the identification, removal, disposal, and 
103.31 	replacement of dead or dying shade trees 
103.32 	lost to forest pests or disease. For purposes 
103.33 	of this section, "shade tree" means a woody 
103.34 	perennial grown primarily for aesthetic or 
103.35 	environmental purposes with minimal to 
104.1 	residual timber value. The commissioner 
104.2 	shall consult with municipalities; park and 
104.3 	recreation boards in cities of the first class; 
104.4 	nonprofit organizations; and other interested 
104.5 	parties in developing eligibility criteria. * 
104.6 	(The preceding text beginning "$75,000 the 
104.7 	first year" was indicated as vetoed by the 
104.8 	governor.) 
104.9 	$200,000 in fiscal year 2008 is for a grant 
104.10 	to the Natural Resources Research Institute 
104.11 	for silvicultural research to improve the 
104.12 	quality and quantity of timber fiber. The 
104.13 	appropriation must be matched in the amount 
104.14 	of $200,000 in cash or in-kind contributions 
104.15 	from the forest products industry members of 
104.16 	the Minnesota Forest Productivity Research 
104.17 	Cooperative. 
104.18 	$1,000,000 the first year and $1,000,000 
104.19 	the second year are to support additional 
104.20 	technical and cost-share assistance to 
104.21 	nonindustrial private forest (NIPF) 
104.22 	landowners forest management activities. 
104.23 	The base appropriation in fiscal year 2010 
104.24 	and later is $500,000. 
104.25 	$200,000 the first year and $200,000 the 
104.26 	second year are to address escalating 
104.27 	land asset management demands, such as 
104.28 	boundary disputes, access easements, and 
104.29 	sale, exchange, and acquisition of forest 
104.30 	lands support additional forest management 
104.31 	activities. 

104.32 	Sec. 16. FIRST MEETING; DEADLINE FOR APPOINTMENTS.
 104.33 	The appointing authorities named in Minnesota Statutes, section 103B.702, must 
104.34 	complete their appointments to the Star Lake Board by August 1, 2008, with the exception 
105.1 	of the appointments required under Minnesota Statutes, section 103B.702, subdivision 1, 
105.2 	paragraph (c), clause (3), which must be completed within 30 days of the first meeting of 
105.3 	the board. The board member designated by the commissioner of natural resources must 
105.4 	convene the first meeting of the board no later than September 1, 2008.

105.5 	Sec. 17. DEPARTMENT OF NATURAL RESOURCES RULEMAKING 
105.6 	REQUIRED; STRUCTURES IN PUBLIC WATERS.
 105.7 	By June 30, 2011, the commissioner of natural resources shall update rules on 
105.8 	structures that are allowed in public waters and the permit requirements for those 
105.9 	structures under Minnesota Rules, chapter 6115. The Department of Natural Resources 
105.10 	general permit no. 2008-0401 expires on the effective date of the updated rules.

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

105.12 	ARTICLE 11
105.13 	ENERGY

105.14	Section 1. SUMMARY OF APPROPRIATIONS.
 	
105.15 	The amounts shown in this section summarize direct appropriations or reductions, 
105.16 	by fund, made in this article.

105.17			2008
		2009
		Total
	
105.18	General
	$
	(2,800,000)
	$
	(1,300,000)
	$
	(4,100,000)

105.19	Sec. 2. APPROPRIATIONS.
 	
105.20 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
105.21 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 57, article 2, to 
105.22 	the agencies and for the purposes specified in this article. The appropriations are from the 
105.23 	general fund or another named fund and are available for the fiscal years indicated for 
105.24 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
105.25 	to or subtraction from the appropriation listed under them is available for the fiscal year 
105.26 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
105.27 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
105.28 	day following final enactment.

105.29				APPROPRIATIONS
	
105.30				Available for the Year
	
105.31				Ending June 30
	
105.32					2008
		2009

106.1
106.2	Sec. 3. COMMERCE; ENERGY AND 
TELECOMMUNICATIONS
 	$
	(2,800,000)
	$
	(1,300,000)
	
106.3 	$2,800,000 is a reduction from the fiscal year 
106.4 	2008 appropriation for renewable hydrogen 
106.5 	initiative grants.
106.6 	$1,500,000 is a reduction from the fiscal 
106.7 	year 2009 appropriation for E-85 cost share 
106.8 	grants.
106.9 	Costs for the Green Economy Transformation 
106.10 	Task Force under section 9 and the report 
106.11 	under section 8 shall be paid from the 
106.12 	appropriation in Laws 2007, chapter 57, 
106.13 	article 2, section 3, subdivision 6, for 
106.14 	technical analysis and demonstration 
106.15 	funding to study environmentally friendly 
106.16 	manufacturing and assembly processes.
106.17 	$200,000 in fiscal year 2009 is to develop 
106.18 	sustainability standards for biodiesel 
106.19 	feedstocks, in consultation with the Next 
106.20 	Generation Board and stakeholders with 
106.21 	technical expertise. This is a onetime 
106.22 	appropriation.

106.23	Sec. 4. PUBLIC UTILITIES COMMISSION
 					
106.24 	By July 31, 2008, the commissioner of 
106.25 	finance shall transfer $4,000,000 from the 
106.26 	telephone assistance plan account in the 
106.27 	special revenue fund to the general fund.

106.28 	Sec. 5. [116J.437] COORDINATING ECONOMIC DEVELOPMENT AND 
106.29 	ENVIRONMENTAL POLICY.
106.30 		Subdivision 1.Definitions. For the purpose of this section, "green economy" means 
106.31 	products, processes, methods, technologies, or services intended to do one or more of 
106.32 	the following:
107.1 	(1) increase the use of energy from renewable sources, as defined in section 
107.2 	216B.1691;
107.3 	(2) increase the energy efficiency of the electric utility infrastructure system or 
107.4 	increase energy conservation related to electricity use, as provided in sections 216B.2401 
107.5 	and 216B.241;
107.6 	(3) reduce greenhouse gas emissions, as defined in section 216H.01, subdivision 
107.7 	2, or mitigate greenhouse gas emissions through, but not limited to, carbon capture, 
107.8 	storage, or sequestration;
107.9 	(4) monitor, protect, restore, and preserve the quality of surface waters; or
107.10 	(5) expand use of biofuels, including by expanding the feasibility or reducing the 
107.11 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can use 
107.12 	biofuels.
107.13 	For the purpose of clause (3), "green economy" includes strategies that reduce carbon 
107.14 	emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 
107.15 	transit or otherwise reducing commuting for employees. 
107.16 		Subd. 2.Coordinating economic development and environmental policy. The 
107.17 	commissioner and the Jobs Skills Partnership Board shall cooperate to promote job 
107.18 	training that complements green economy business development.

107.19 	Sec. 6. Minnesota Statutes 2007 Supplement, section 116J.575, subdivision 1a, is 
107.20 	amended to read:
107.21 		Subd. 1a.Priorities. (a) If applications for grants exceed the available 
107.22 	appropriations, grants shall be made for sites that, in the commissioner's judgment, provide 
107.23 	the highest return in public benefits for the public costs incurred. "Public benefits" include 
107.24 	job creation, bioscience development, environmental benefits to the state and region, 
107.25 	efficient use of public transportation, efficient use of existing infrastructure, provision of 
107.26 	affordable housing, multiuse development that constitutes community rebuilding rather 
107.27 	than single-use development, crime reduction, blight reduction, community stabilization, 
107.28 	and property tax base maintenance or improvement. In making this judgment, the 
107.29 	commissioner shall give priority to redevelopment projects with one or more of the 
107.30 	following characteristics:
107.31 	(1) the need for redevelopment in conjunction with contamination remediation needs;
107.32 	(2) the redevelopment project meets current tax increment financing requirements 
107.33 	for a redevelopment district and tax increments will contribute to the project;
107.34 	(3) the redevelopment potential within the municipality;
107.35 	(4) proximity to public transit if located in the metropolitan area; 
108.1 	(5) redevelopment costs related to expansion of a bioscience business in Minnesota; 
108.2 	and
108.3 	(6) multijurisdictional projects that take into account the need for affordable housing, 
108.4 	transportation, and environmental impact; or
108.5 	(7) the project advances or promotes the green economy as defined in section 
108.6 	116J.437.
108.7 	(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 
108.8 	commissioner may weigh each factor, depending upon the facts and circumstances, as 
108.9 	the commissioner considers appropriate. The commissioner may consider other factors 
108.10 	that affect the net return of public benefits for completion of the redevelopment plan. The 
108.11 	commissioner, notwithstanding the listing of priorities and the goal of maximizing the 
108.12 	return of public benefits, shall make grants that distribute available money to sites both 
108.13 	within and outside of the metropolitan area. Unless sufficient applications are not received 
108.14 	for qualifying sites outside of the metropolitan area, at least 50 percent of the money 
108.15 	provided as grants must be made for sites located outside of the metropolitan area.

108.16 	Sec. 7. Minnesota Statutes 2006, section 116J.8731, subdivision 4, is amended to read:
108.17 		Subd. 4.Eligible projects. Assistance must be evaluated on the existence of the 
108.18 	following conditions:
108.19 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
108.20 	existing jobs as measured by the wages, skills, or education associated with those jobs;
108.21 	(2) increase in the tax base;
108.22 	(3) the project can demonstrate that investment of public dollars induces private 
108.23 	funds;
108.24 	(4) the project can demonstrate an excessive public infrastructure or improvement 
108.25 	cost beyond the means of the affected community and private participants in the project;
108.26 	(5) the project provides higher wage levels to the community or will add value to 
108.27 	current workforce skills;
108.28 	(6) whether assistance is necessary to retain existing business; and
108.29 	(7) whether assistance is necessary to attract out-of-state business; and
108.30 	(8) the project promotes or advances the green economy as defined in section 
108.31 	116J.437.
108.32 	A grant or loan cannot be made based solely on a finding that the conditions in 
108.33 	clause (6) or (7) exist. A finding must be made that a condition in clause (1), (2), (3), 
108.34 	(4), or (5) also exists.
108.35 	Applications recommended for funding shall be submitted to the commissioner.

109.1 	Sec. 8. REPORT.
 109.2 	The commissioner of commerce, in consultation with the commissioner of 
109.3 	employment and economic development, must analyze all state grant and loan programs 
109.4 	administered by a state agency, other than the Iron Range Resources and Rehabilitation 
109.5 	Board, to develop a plan specific to each program to optimize the growth of the green 
109.6 	economy, as defined in new Minnesota Statutes, section 116J.437, through program 
109.7 	activities. The report, along with any necessary implementing legislation, must be 
109.8 	submitted to the chairs of the legislative committees with primary jurisdiction over 
109.9 	energy, environmental, economic development, and economic development finance or 
109.10 	policy issues by January 15, 2009.

109.11 	Sec. 9. GREEN ECONOMY TRANSFORMATION TASK FORCE.
 109.12 		Subdivision 1.Task force. (a) A Green Economy Transformation Task Force is 
109.13 	created to advise and assist the governor and legislature regarding activities to transform 
109.14 	the state's economy, and to develop a statewide action plan as provided under subdivision 
109.15 	2. The task force shall be appointed no later than June 30, 2008, and consist of:
109.16 	(1) three members of the house of representatives, including one member of the 
109.17 	minority party appointed by the speaker;
109.18 	(2) three members of the senate appointed by the Subcommittee on Committees of 
109.19 	the Committee on Rules and Administration, including one member of the minority;
109.20 	(3) six representatives from state agencies and institutions appointed by the 
109.21 	governor, including one member from the Office of Energy Security, one member from 
109.22 	the Department of Employment and Economic Development, one member from the Job 
109.23 	Skills Partnership Board, one member from the University of Minnesota, one member 
109.24 	from Minnesota State Colleges and Universities, and one member from the Pollution 
109.25 	Control Agency; 
109.26 	(4) two public members appointed by the governor, including one member 
109.27 	representing the utility industry, and one member representing financial institutions; 
109.28 	(5) three public members appointed by the speaker of the house of representatives, 
109.29 	including one member representing labor, one member representing a statewide 
109.30 	environmental organization, and one member representing financial institutions or venture 
109.31 	capital; and
109.32 	(6) three public members appointed by the senate Subcommittee on Committees 
109.33 	of the Committee on Rules and Administration, including one member from a local 
109.34 	economic development authority, one member from a statewide organization dedicated to 
109.35 	furthering the green economy, and one additional member.
110.1 	(b) The commissioner of commerce, in cooperation with the commissioner of 
110.2 	employment and economic development, shall provide staff support to the task force. The 
110.3 	task force may accept outside resources to help support its efforts.
110.4 	(c) Each of the legislative appointing authorities must name a cochair of the task 
110.5 	force from the legislative members appointed by that authority.
110.6 	(d) Public members of the task force must be compensated as provided in Minnesota 
110.7 	Statutes, section 15.059, subdivision 3.
110.8 		Subd. 2.Duties. (a) By January 15, 2009, the task force shall develop and present to 
110.9 	the legislature under Minnesota Statutes, section 3.195, and to the governor a statewide 
110.10 	action plan, including necessary draft legislation and budget requests, for transforming 
110.11 	the economic system of the state to respond to and benefit from the environmental and 
110.12 	energy policies of the state contained in the:
110.13 	(1) renewable energy standard in Minnesota Statutes, section 216B.1691, 
110.14 	subdivision 2a;
110.15 	(2) energy conservation requirement in Minnesota Statutes, section 216B.241, 
110.16 	subdivision 1c;
110.17 	(3) greenhouse gas emission reduction goals in Minnesota Statutes, section 216H.02, 
110.18 	subdivision 1;
110.19 	(4) Clean Water Legacy Act in Minnesota Statutes, chapter 114D; and 
110.20 	(5) biofuels 25 by 2025 initiative in Minnesota Statutes, sections 41A.10, subdivision 
110.21 	2, and 41A.11.
110.22 	(b) The plan may consist of recommended changes in law, administrative actions 
110.23 	of governmental entities, collaborative actions, and actions of individuals and individual 
110.24 	organizations. The plan must be developed following the analysis described in this 
110.25 	paragraph and must be based on the analysis. The analysis must include:
110.26 	(1) a market analysis of the business opportunities and needs created by the laws 
110.27 	enumerated in paragraph (a), including local, state, national, and international markets;
110.28 	(2) an analysis of the labor force needs related to the market analysis opportunities 
110.29 	identified in clause (1), including educational, training, and retraining needs; and
110.30 	(3) an inventory of the current labor and business assets available to respond to the 
110.31 	opportunities identified in clause (1) and the labor needs identified in clause (2).
110.32 	The task force shall contract for the analysis required by this paragraph.
110.33 		Subd. 3.Expiration. The task force expires June 30, 2009.

111.1 	ARTICLE 12
111.2 	AGRICULTURE

111.3	Section 1. SUMMARY OF APPROPRIATIONS.
 	
111.4 	The amounts shown in this section summarize direct appropriations, by fund, made 
111.5 	in this article.

111.6			2008
		2009
		Total
	
111.7	General
	$
	472,000
	$
	5,490,000
	$
	5,962,000

111.8	Sec. 2. APPROPRIATIONS.
 	
111.9 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
111.10 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 45, article 1, to 
111.11 	the agencies and for the purposes specified in this article. The appropriations are from the 
111.12 	general fund or another named fund and are available for the fiscal years indicated for 
111.13 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
111.14 	to or subtraction from the appropriation listed under them is available for the fiscal year 
111.15 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
111.16 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
111.17 	day following final enactment.

111.18				APPROPRIATIONS
	
111.19				Available for the Year
	
111.20				Ending June 30
	
111.21					2008
		2009

111.22	Sec. 3. DEPARTMENT OF AGRICULTURE

111.23	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(262,000)

111.24	Subd. 2.General Reduction
 		-0-
		(652,000)
	
111.25 	The commissioner shall allocate the general 
111.26 	reduction among agency operations.

111.27	Subd. 3.Livestock Investment Grants
 		-0-
		700,000
	
111.28 	For livestock investment grants under new 
111.29 	Minnesota Statutes, section 17.118. This is a 
111.30 	onetime appropriation.

111.31	Subd. 4.Ethanol Producer Payments
 		-0-
		(310,000)
	
112.1 	This reduction is from the appropriation for 
112.2 	ethanol producer payments in Laws 2007, 
112.3 	chapter 45, article 1, section 3, subdivision 2. 
112.4 	This reduction is onetime.
112.5 	For fiscal year 2009 and thereafter, 
112.6 	notwithstanding any law to the contrary, the 
112.7 	commissioner of agriculture shall discontinue 
112.8 	payments under Minnesota Statutes, section 
112.9 	41A.09, including deficiency payments, to 
112.10 	any producer that ceased operations and 
112.11 	declared bankruptcy in 2004. For fiscal years 
112.12 	2010 and 2011, the payments discontinued 
112.13 	under this paragraph are available to make 
112.14 	payments to claimants for unpaid claims 
112.15 	against the producer that ceased operations 
112.16 	and declared bankruptcy in 2004.

112.17	Sec. 4. BOARD OF ANIMAL HEALTH
 	$
	472,000
	$
	5,752,000
	
112.18 	$472,000 in 2008, and $2,252,000 in 2009 
112.19 	are for monitoring, testing, eradication, 
112.20 	education and outreach, other activities the 
112.21 	board is required to undertake to comply with 
112.22 	federal regulations concerning cattle, bison, 
112.23 	and farmed cervidae under a USDA modified 
112.24 	accredited status, and annual payments under 
112.25 	new Minnesota Statutes, section 35.086. 
112.26 	$80,000 of this appropriation in 2009 is for a 
112.27 	grant to the North Central Research Center at 
112.28 	Grand Rapids to develop best management 
112.29 	practices to control bovine tuberculosis. The 
112.30 	appropriation for fiscal year 2009 is added 
112.31 	to the base.
112.32 	$3,500,000 in 2008 is for payments 
112.33 	to cattle owners who remove cattle 
112.34 	herds that are located within the bovine 
112.35 	tuberculosis management zone and fencing 
113.1 	cost-share assistance under new Minnesota 
113.2 	Statutes, section 35.086. $150,000 of this 
113.3 	appropriation is for a grant to the North 
113.4 	Central Research Center at Grand Rapids 
113.5 	to develop best management practices to 
113.6 	control bovine tuberculosis. This is a onetime 
113.7 	appropriation and is available until spent.

113.8 	Sec. 5. [17.118] LIVESTOCK INVESTMENT GRANT PROGRAM.
113.9 		Subdivision 1.Establishment. The commissioner may award a livestock investment 
113.10 	grant to a person who raises livestock in this state equal to ten percent of the first $500,000 
113.11 	of qualifying expenditures, provided the person makes qualifying expenditures of at least 
113.12 	$4,000. The commissioner may award multiple livestock investment grants to a person 
113.13 	over the life of the program as long as the cumulative amount does not exceed $50,000.
113.14 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
113.15 	subdivision have the meanings given them. 
113.16 	(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed 
113.17 	cervidae, ratitae, bison, sheep, and llamas.
113.18 	(c) "Qualifying expenditures" means the amount spent for: 
113.19 	(1) the acquisition, construction, or improvement of buildings or facilities for the 
113.20 	production of livestock or livestock products; or
113.21 	(2) the acquisition of equipment for livestock housing, confinement, feeding, and 
113.22 	waste management including, but not limited to, the following:
113.23 	(i) freestall barns;
113.24 	(ii) watering facilities;
113.25 	(iii) feed storage and handling equipment;
113.26 	(iv) milking parlors;
113.27 	(v) robotic equipment;
113.28 	(vi) scales;
113.29 	(vii) milk storage and cooling facilities;
113.30 	(viii) bulk tanks;
113.31 	(ix) computer hardware and software and associated equipment used to monitor 
113.32 	the productivity and feeding of livestock;
113.33 	(x) manure pumping and storage facilities;
113.34 	(xi) swine farrowing facilities;
113.35 	(xii) swine and cattle finishing barns;
114.1 	(xiii) calving facilities;
114.2 	(xiv) digesters;
114.3 	(xv) fences;
114.4 	(xvi) equipment used to produce energy; and
114.5 	(xvii) on-farm processing facilities and equipment.
114.6 	Qualifying expenditures only include amounts that are allowed to be capitalized and 
114.7 	deducted under either section 167 or 179 of the Internal Revenue Code in computing 
114.8 	federal taxable income. Qualifying expenditures do not include an amount paid to 
114.9 	refinance existing debt.
114.10 	(d) "Qualifying period" means, for a grant awarded during a fiscal year, that full 
114.11 	calendar year of which the first six months precede the first day of the current fiscal year. 
114.12 	For example, an eligible person who makes qualifying expenditures during calendar 
114.13 	year 2008 is eligible to receive a livestock investment grant between July 1, 2008, and 
114.14 	June 30, 2009.
114.15 		Subd. 3.Eligibility. (a) To be eligible for a livestock investment grant, a person 
114.16 	must: 
114.17 	(1) be a resident of Minnesota or an entity authorized to farm in this state under 
114.18 	section 500.24, subdivision 3;
114.19 	(2) be the principal operator of the farm;
114.20 	(3) hold a feedlot registration, if required; and
114.21 	(4) apply to the commissioner on forms prescribed by the commissioner including a 
114.22 	statement of the qualifying expenditures of at least $4,000 made during the qualifying 
114.23 	period along with any proof or other documentation the commissioner may require.
114.24 	(b) The $50,000 maximum grant applies at the entity level for partnerships, S 
114.25 	corporations, trusts, and estates as well as at the individual level. In the case of married 
114.26 	individuals, the grant is limited to $50,000 for a married couple.
114.27 		Subd. 4.Process. The commissioner shall review completed applications and 
114.28 	award grants to eligible applicants in the order in which applications were received by 
114.29 	the commissioner. The commissioner shall certify eligible applications up to the amount 
114.30 	appropriated for a fiscal year. The commissioner must place any additional eligible 
114.31 	applications on a waiting list and, notwithstanding subdivision 2, paragraph (c), give 
114.32 	them priority during the next fiscal year. The commissioner shall notify in writing any 
114.33 	applicant who applies for a grant and is ineligible under the provisions of this section 
114.34 	as well as any applicant whose application is received or reviewed after the fiscal year 
114.35 	funding limit has been reached. 

115.1 	Sec. 6. [35.086] BOVINE TUBERCULOSIS MANAGEMENT ZONE; 
115.2 	RESTRICTIONS.
115.3 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
115.4 	section.
115.5 	(b) "Bovine tuberculosis management zone" means the area within the ten-mile 
115.6 	radius around the five presumptive tuberculosis-positive deer sampled during the fall 
115.7 	2006 hunter-harvested surveillance effort.
115.8 	(c) "Located within" means that the herd is kept in the area for at least a part of 
115.9 	the year.
115.10 		Subd. 2.Cattle herd buyout. (a) The board shall offer a herd buyout payment 
115.11 	to cattle owners with existing cattle that are located within the bovine tuberculosis 
115.12 	management zone. The payment shall be $500 per animal. By September 1, 2008, 
115.13 	the cattle owner must accept or decline the offer for herd buyout payments under this 
115.14 	subdivision. A cattle owner receiving payment under this section must sign a contract 
115.15 	with the board that provides:
115.16 	(1) all cattle located within the bovine tuberculosis management zone will be 
115.17 	slaughtered by December 31, 2008;
115.18 	(2) the cattle owner will not have or allow any cattle to be located within the bovine 
115.19 	tuberculosis management zone, unless authorized by the board; and 
115.20 	(3) the cattle owner who violates a condition under this subdivision must repay all 
115.21 	payments received under this section and be subject to penalties for violations under 
115.22 	this chapter.
115.23 	(b) After the effective date of this section, cattle shall not be moved into the bovine 
115.24 	tuberculosis management zone, unless authorized by the board.
115.25 	(c) Prior to making any payments under this subdivision, the board shall verify all 
115.26 	cattle for which a contract has been signed under this subdivision have been slaughtered.
115.27 	(d) In addition to the herd buyout payment under paragraph (a), a cattle owner who 
115.28 	signs a contract under paragraph (a) shall receive an annual payment of $75 for each 
115.29 	animal slaughtered. The board shall make the first annual payment by June 30, 2009, and 
115.30 	make annual payments by June 30 each year thereafter until the area receives a bovine 
115.31 	tuberculosis-free status and the owner is authorized by the board to have cattle located 
115.32 	within the bovine tuberculosis management zone.
115.33 		Subd. 3.Cattle herds remaining in the zone. The board shall conduct a 
115.34 	risk assessment for cattle that continue to be located within the bovine tuberculosis 
115.35 	management zone after December 31, 2008. If the board determines that cattle herds that 
115.36 	continue to be located within the bovine tuberculosis management zone present a risk of 
116.1 	cattle and deer interaction, the board shall require the owner of the cattle to keep all cattle 
116.2 	in a manner that does not allow cattle and deer interface. The board may also require that 
116.3 	any stored forage crops located within the bovine tuberculosis management zone are kept 
116.4 	in a manner that does not allow deer access. The board shall offer cost-share assistance for 
116.5 	fencing under subdivision 4 to a person who is required to:
116.6 	(1) keep cattle in a manner that does not allow cattle and deer interface; or
116.7 	(2) keep stored forage crops in a manner that does not allow deer access.
116.8 		Subd. 4.Cost-share assistance for fencing. (a) The board shall provide cost-share 
116.9 	assistance to persons for fencing cattle and stored forage crops in areas where the board 
116.10 	determines that there is an unacceptable risk of transmitting bovine tuberculosis to deer. 
116.11 	The cost-share payments shall be 90 percent of the cost of an approved fence up to 
116.12 	$75,000. The payments under this subdivision shall be on a reimbursement basis and 
116.13 	paid by the board after the board determines that the fence is built to the specifications 
116.14 	required by the board.
116.15 	(b) The board shall establish specifications for fences that qualify for cost-share 
116.16 	assistance under this subdivision and provide cattle owners with a list of approved fencing 
116.17 	contractors. The fencing must be constructed and maintained by an approved fencing 
116.18 	contractor, the landowner, or the tenant.
116.19 	(c) The board shall periodically inspect fences for which cost-share assistance has 
116.20 	been received under this subdivision. If the board determines that a fence for which 
116.21 	cost-share assistance has been received is not being maintained or used properly, the 
116.22 	board may:
116.23 	(1) order that the fence be repaired or used properly; or
116.24 	(2) place the herd under quarantine and require repayment to the board of any 
116.25 	cost-share assistance received by the person.

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

116.27 	Sec. 7. Minnesota Statutes 2007 Supplement, section 35.244, is amended to read:
116.28 	35.244 RULES FOR CONTROL OF BOVINE TUBERCULOSIS.
116.29 		Subdivision 1.Designation of zones. The board has the authority to control 
116.30 	tuberculosis and the movement of cattle, bison, goats, and farmed cervidae within and 
116.31 	between tuberculosis zones in the state. Zones within the state may be designated 
116.32 	as accreditation preparatory, modified accredited, modified accredited advanced, or 
116.33 	accredited free as those terms are defined in Code of Federal Regulations, title 9, part 77. 
116.34 	The board may designate tuberculosis zones that contain not more than 300 herds.
117.1 		Subd. 2.Control within modified accredited zone. In a modified accredited 
117.2 	zone, the board has the authority to:
117.3 	(1) require owners of cattle, bison, goats, or farmed cervidae to report personal 
117.4 	contact information and location of livestock to the board;
117.5 	(2) require a permit or movement certificates for all cattle, bison, goats, and farmed 
117.6 	cervidae moving between premises within the zone or leaving or entering the zone;
117.7 	(3) require official identification of all cattle, bison, goats, and farmed cervidae 
117.8 	within the zone or leaving or entering the zone;
117.9 	(4) require a negative tuberculosis test within 60 days prior to movement for any 
117.10 	individual cattle, bison, goats, or farmed cervidae leaving the zone with the exception of 
117.11 	cattle moving under permit directly to a slaughter facility under state or federal inspection;
117.12 	(5) require a whole-herd tuberculosis test within 12 months prior to moving breeding 
117.13 	cattle out of the zone;
117.14 	(6) require annual herd inventories on all cattle, bison, goats, or farmed cervidae 
117.15 	herds; and
117.16 	(7) require that a risk assessment be performed to evaluate the interaction of 
117.17 	free-ranging deer with cattle, bison, goats, and farmed cervidae herds and require the 
117.18 	owner to implement the recommendations of the risk assessment.
117.19 		Subd. 3.Authority to adopt rules. The board may adopt rules to provide for the 
117.20 	control of tuberculosis in cattle. The rules may include provisions for quarantine, tests, 
117.21 	and such other measures as the board deems appropriate. Federal regulations, as provided 
117.22 	by Code of Federal Regulations, title 9, part 77, and the Bovine Tuberculosis Eradication 
117.23 	Uniform Methods and Rules, are incorporated as part of the rules in this state.

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

117.25 	Sec. 8. BOVINE TUBERCULOSIS CONTROL; TEMPORARY ASSESSMENT; 
117.26 	APPROPRIATION.
 117.27 	(a) From January 1, 2009, to December 31, 2009, the commissioner of agriculture 
117.28 	shall collect a bovine tuberculosis control assessment of $1 for each head of cattle sold 
117.29 	from the first purchaser, as defined in Minnesota Statutes, section 17.53, subdivision 8, 
117.30 	paragraph (a). Money collected under this section shall be deposited in an account in 
117.31 	the special revenue fund and is appropriated to the Board of Animal Health for bovine 
117.32 	tuberculosis control activities.
117.33 	(b) A cattle owner located in a modified accredited zone established under Minnesota 
117.34 	Statutes, section 35.244, may receive a refund of the assessment under paragraph (a) after 
117.35 	application to the commissioner of agriculture.

118.1 	ARTICLE 13
118.2 	VETERANS AFFAIRS

118.3	Section 1. SUMMARY OF APPROPRIATIONS.
 	
118.4 	The amounts shown in this section summarize direct appropriations, by fund, made 
118.5 	in this article.

118.6			2008
		2009
		Total
	
118.7	General
	$
	(5,200,000)
	$
	(625,000)
	$
	(5,825,000)

118.8	Sec. 2. APPROPRIATIONS.
 	
118.9 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
118.10 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 45, article 2, to 
118.11 	the agencies and for the purposes specified in this article. The appropriations are from the 
118.12 	general fund or another named fund and are available for the fiscal years indicated for 
118.13 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
118.14 	to or subtraction from the appropriation listed under them is available for the fiscal year 
118.15 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
118.16 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
118.17 	day following final enactment.

118.18				APPROPRIATIONS
	
118.19				Available for the Year
	
118.20				Ending June 30
	
118.21					2008
		2009

118.22	Sec. 3. VETERANS AFFAIRS

118.23	Subdivision 1.Total Appropriation
 	$
	(5,200,000)
	$
	(625,000)
	
118.24 	The appropriation additions or reductions 
118.25 	for each purpose are shown in the following 
118.26 	subdivisions.

118.27	Subd. 2.Benefits and Services
 		(5,200,000)
		(1,650,000)
	
118.28 	$2,500,000 in 2009 is for state soldiers' 
118.29 	assistance under Minnesota Statutes, section 
118.30 	197.05. $1,300,000 of this appropriation is 
118.31 	onetime.
119.1 	$100,000 in 2009 is for operations of the 
119.2 	LinkVET linkage line. This is a onetime 
119.3 	appropriation.
119.4 	$250,000 in 2009 is for traumatic brain injury 
119.5 	(TBI) and posttraumatic stress disorder 
119.6 	(PTSD) outreach and education, and for 
119.7 	a follow-up study on future mental health 
119.8 	needs of veterans with TBI or PTSD. This is 
119.9 	a onetime appropriation.
119.10 	$500,000 in 2009 is for additional 
119.11 	state veterans case workers to provide 
119.12 	comprehensive individual assistance to 
119.13 	veterans and to coordinate services for 
119.14 	veterans, military members, and their 
119.15 	families.
119.16 	If a new veterans cemetery is developed in 
119.17 	northern Minnesota, $325,000 each year 
119.18 	must be added to the agency's base funding 
119.19 	for cemetery operations beginning in fiscal 
119.20 	year 2010.
119.21 	The appropriation in Laws 2007, chapter 
119.22 	144, article 1, section 7, for grants to eligible 
119.23 	veterans or the spouses and children of 
119.24 	veterans as provided in Minnesota Statutes, 
119.25 	section 197.791, is reduced by $5,200,000 in 
119.26 	2008 and by $5,000,000 in 2009.

119.27	Subd. 3.Claims and Outreach
 		-0-
		725,000
	
119.28 	$250,000 in 2009 is for a grant to the 
119.29 	Minnesota Assistance Council for Veterans 
119.30 	for their work in helping veterans and their 
119.31 	families affected by homelessness. This is a 
119.32 	onetime appropriation.
119.33 	$125,000 in 2009 is to add "state navigator" 
119.34 	positions to coordinate state agency programs 
120.1 	and activities to support and assist soldiers 
120.2 	and their families during and after the 
120.3 	reintegration process. This is a onetime 
120.4 	appropriation.
120.5 	$250,000 in 2009 is for the Veterans Claims 
120.6 	Office for outreach and training to improve 
120.7 	services and benefits to veterans. This 
120.8 	appropriation includes money to add veterans 
120.9 	service officer/coordinator positions, 
120.10 	including one to assist female veterans. This 
120.11 	is a onetime appropriation.
120.12 	$100,000 in 2009 is for a grant to the 
120.13 	Minnesota Ambulance Association 
120.14 	to implement a veterans paramedic 
120.15 	apprenticeship program to reintegrate 
120.16 	returning military medics into Minnesota's 
120.17 	workforce in the field of paramedic and 
120.18 	emergency services, thereby guaranteeing 
120.19 	returning military medics gainful 
120.20 	employment with livable wages and benefits. 
120.21 	This is a onetime appropriation.

120.22	Subd. 4.Departmental Operations
 		-0-
		100,000
	
120.23 	$100,000 in fiscal year 2009 is for veterans 
120.24 	affairs marketing. This is a onetime 
120.25 	appropriation.

120.26	Subd. 5.Veterans Homes
 		-0-
		200,000
	
120.27 	$200,000 in 2009 is for a strategic planning 
120.28 	study of the operations and capacity of the 
120.29 	Minnesota veterans homes. This is a onetime 
120.30 	appropriation.

120.31 	Sec. 4. Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision 
120.32 	to read:
120.33 		Subd. 6.World War II memorial donation match account. Money remaining 
120.34 	in the World War II memorial donation match account after the state share of the 
121.1 	construction costs of the World War II memorial has been paid in full is appropriated to the 
121.2 	commissioner of veterans affairs for services and programs for veterans and their families.

121.3 	Sec. 5. Minnesota Statutes 2006, section 190.19, is amended by adding a subdivision 
121.4 	to read:
121.5 		Subd. 2a.Uses; veterans. Money appropriated to the Department of Veterans 
121.6 	Affairs from the Minnesota "Support Our Troops" account may be used for:
121.7 	(1) grants to veterans service organizations; and
121.8 	(2) outreach to underserved veterans.

121.9 	ARTICLE 14
121.10 	MILITARY AFFAIRS

121.11	Section 1. SUMMARY OF APPROPRIATIONS.
 	
121.12 	The amounts shown in this section summarize direct appropriations, by fund, made 
121.13 	in this article.

121.14			2008
		2009
		Total
	
121.15	General
	$
	-0-
	$
	375,000
	$
	375,000

121.16	Sec. 2. APPROPRIATIONS.
 	
121.17 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
121.18 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 45, article 3, to 
121.19 	the agencies and for the purposes specified in this article. The appropriations are from the 
121.20 	general fund or another named fund and are available for the fiscal years indicated for 
121.21 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
121.22 	to or subtraction from the appropriation listed under them is available for the fiscal year 
121.23 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
121.24 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
121.25 	day following final enactment.

121.26				APPROPRIATIONS
	
121.27				Available for the Year
	
121.28				Ending June 30
	
121.29					2008
		2009

121.30	Sec. 3. MILITARY AFFAIRS
 	$
	-0-
	$
	375,000
	
121.31 	$75,000 in 2009 is to establish a state 
121.32 	enhancement of the employer support of the 
122.1 	guard and reserve program. The base for this 
122.2 	activity is $35,000 in fiscal year 2010 and 
122.3 	$35,000 in fiscal year 2011.
122.4 	$135,000 in 2009 is to make $1,000 biannual 
122.5 	bonus payments to National Guard medics 
122.6 	who meet recertification requirements during 
122.7 	the fiscal year.
122.8 	$150,000 in 2009 is to add "state navigator" 
122.9 	positions to coordinate state agency programs 
122.10 	and activities to support and assist soldiers 
122.11 	and their families during and after the 
122.12 	reintegration process. This is a onetime 
122.13 	appropriation.
122.14 	$15,000 in 2009 is for a study of the National 
122.15 	Guard Youth Challenge Program. This is a 
122.16 	onetime appropriation.

122.17 	Sec. 4. Minnesota Statutes 2006, section 190.19, subdivision 1, is amended to read:
122.18 		Subdivision 1.Establishment. The Minnesota "Support Our Troops" account is 
122.19 	established in the special revenue fund. The account shall consist of contributions from 
122.20 	private sources and appropriations. Money in the account is appropriated in equal shares 
122.21 	to the Department of Military Affairs and the Department of Veterans Affairs.

122.22 	EFFECTIVE DATE. Notwithstanding Laws 2007, chapter 45, article 2, section 
122.23 	1, and article 3, section 2, subdivision 3, this section is effective for distribution of the 
122.24 	Minnesota "Support Our Troops" account the day following final enactment.

122.25 	Sec. 5. Minnesota Statutes 2007 Supplement, section 190.19, subdivision 2, is 
122.26 	amended to read:
122.27 		Subd. 2.Uses. (a) Money appropriated from the Minnesota "Support Our Troops" 
122.28 	account to the Department of Military Affairs may be used for:
122.29 	(1) grants directly to eligible individuals;
122.30 	(2) grants to one or more eligible foundations for the purpose of making grants to 
122.31 	eligible individuals, as provided in this section; or
122.32 	(3) veterans' services.; or
122.33 	(4) grants to family readiness groups chartered by the adjutant general.
123.1 	(b) As used in paragraph (a), the term, "eligible individual" includes any person 
123.2 	who is:
123.3 	(1) a member of the Minnesota National Guard or a reserve unit based in Minnesota 
123.4 	who has been called to active service as defined in section 190.05, subdivision 5;
123.5 	(2) a Minnesota resident who is a member of a military reserve unit not based 
123.6 	in Minnesota, if the member is called to active service as defined in section 190.05, 
123.7 	subdivision 5;
123.8 	(3) any other Minnesota resident performing active service for any branch of the 
123.9 	military of the United States; 
123.10 	(4) a person who served in one of the capacities listed in clause (1), (2), or (3) who 
123.11 	has current financial needs directly related to that service; and
123.12 	(5) a member of the immediate family of an individual identified in clause (1), (2), 
123.13 	(3), or (4). For purposes of this clause, "immediate family" means the individual's spouse 
123.14 	and minor children and, if they are dependents of the member of the military, the member's 
123.15 	parents, grandparents, siblings, stepchildren, and adult children.
123.16 	(c) As used in paragraph (a), the term "eligible foundation" includes any organization 
123.17 	that:
123.18 	(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue 
123.19 	Code;
123.20 	(2) has articles of incorporation under chapter 317A specifying the purpose of 
123.21 	the organization as including the provision of financial assistance to members of the 
123.22 	Minnesota National Guard and other United States armed forces reserves and their 
123.23 	families and survivors; and
123.24 	(3) agrees in writing to distribute any grant money received from the adjutant general 
123.25 	under this section to eligible individuals as defined in this section and in accordance 
123.26 	with any written policies and rules the adjutant general may impose as conditions of the 
123.27 	grant to the foundation.
123.28 	(d) The maximum grant awarded to an eligible individual under paragraph (a) in a 
123.29 	calendar year with funds from the Minnesota "Support Our Troops" account, either through 
123.30 	an eligible institution or directly from the adjutant general, may not exceed $2,000.

123.31 	Sec. 6. Minnesota Statutes 2006, section 190.25, subdivision 3, is amended to read:
123.32 		Subd. 3.Sale; use of funds. The adjutant general is authorized to sell in the manner 
123.33 	provided by law any or all
123.34 	(1) land, and
124.1 	(2) timber, growing crops, buildings, and other improvements, if any, situated upon 
124.2 	the land,
124.3 	acquired under the authority of subdivision 1 or which may hereafter comprise the Camp 
124.4 	Ripley Military Field Training Center and not needed for military training purposes. The 
124.5 	proceeds of any sales shall be deposited in the general fund.
124.6 	The adjutant general may use funds that are directly appropriated for the acquisition 
124.7 	of land, the payment of expenses of forest management on land forming the Camp 
124.8 	Ripley Military Reservation, and the provision of an Enlisted Person's Service Center. If 
124.9 	amounts that are directly appropriated for these purposes in either year of a biennium are 
124.10 	insufficient, the appropriation for the other year of the biennium is available.

124.11 	Sec. 7. Minnesota Statutes 2006, section 190.25, is amended by adding a subdivision 
124.12 	to read:
124.13 		Subd. 3a.Timber sales; use of funds. The adjutant general is authorized to sell 
124.14 	in the manner provided by law any or all timber on land acquired under the authority of 
124.15 	subdivision 1 or which may hereafter comprise the Camp Ripley Military Field Training 
124.16 	Center. The proceeds of any sales of timber under this subdivision must be deposited in an 
124.17 	account in the special revenue fund and are appropriated to the adjutant general to be used 
124.18 	to manage the timber resources of Camp Ripley in a manner consistent with the camp's 
124.19 	purpose as lands for training armed forces.

124.20 	Sec. 8. [192.341] STATE ENHANCED EMPLOYER SUPPORT OF GUARD 
124.21 	AND RESERVE (ESGR) PROGRAM.
124.22 	The adjutant general is authorized to establish and administer a state enhancement 
124.23 	to the federal Employer Support of Guard and Reserve (ESGR) Program. The adjutant 
124.24 	general shall develop policy and guidelines for the administration of the program 
124.25 	established under this section.

124.26 	Sec. 9. Minnesota Statutes 2006, section 192.501, is amended by adding a subdivision 
124.27 	to read:
124.28 		Subd. 1c.Medic recertification bonus program. (a) The adjutant general 
124.29 	may establish a program to provide a recertification bonus to eligible members of the 
124.30 	Minnesota National Guard who recertify as emergency medical technicians (EMTs) in 
124.31 	the National Guard within the limitations of this subdivision. The bonus payments are 
124.32 	intended to generally encourage a member's continuing certification as an EMT.
125.1 	(b) Eligibility for the recertification bonus is limited to a member of the National 
125.2 	Guard who:
125.3 	(1) is serving satisfactorily as determined by the adjutant general; and
125.4 	(2) has successfully completed the training required for recertification and warrants 
125.5 	the payment of a bonus.
125.6 	(c) The adjutant general may, within the limitations of this subdivision and other 
125.7 	applicable laws, determine additional eligibility criteria for the bonus, and must specify all 
125.8 	of the criteria in regulations and publish changes as necessary.
125.9 	(d) Payments under this subdivision must be made on a schedule that is determined 
125.10 	and published in department regulations by the adjutant general.

125.11 	Sec. 10. NATIONAL GUARD YOUTH CHALLENGE PROGRAM STUDY.
 125.12 	The adjutant general shall study participation by the Minnesota National Guard in 
125.13 	the National Guard Youth Challenge Program promoted by the National Guard Youth 
125.14 	Foundation. The adjutant general shall report on the study and make recommendations to 
125.15 	the governor and the chairs and ranking minority members of the legislative committees 
125.16 	with jurisdiction over National Guard programs by January 15, 2009. The study must 
125.17 	include:
125.18 	(1) possible locations for the Minnesota National Guard Youth Challenge Program;
125.19 	(2) estimated start-up costs for the program;
125.20 	(3) application and establishment procedures and resources required to apply for 
125.21 	and establish the program; and
125.22 	(4) a survey of similar programs established in other states and how each state comes 
125.23 	up with the state match required to obtain federal funds.

125.24 	ARTICLE 15
125.25 	ECONOMIC DEVELOPMENT 

125.26	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
125.27 	The amounts shown in this section summarize direct appropriations, by fund, made 
125.28 	in this article.

125.29			2008
		2009
		Total
	
125.30	General
	$
	500,000
	$
	(2,908,000)
	$
	(2,408,000)

125.31	Sec. 2. APPROPRIATIONS.
 	
125.32 	The dollar amounts in the columns under "APPROPRIATIONS" are added to or, 
125.33 	if shown in parentheses, subtracted from the appropriations in Laws 2007, chapter 135, 
126.1 	or other law to the specified agencies. The appropriations are from the general fund, or 
126.2 	another named fund, and are available for the fiscal years indicated for each purpose. The 
126.3 	figures "2008" and "2009" used in this article mean that the appropriations listed under 
126.4 	them are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. 
126.5 	"The first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" 
126.6 	is fiscal years 2008 and 2009. Appropriations for the fiscal year ending June 30, 2008, are 
126.7 	effective the day following final enactment.

126.8				APPROPRIATIONS
	
126.9				Available for the Year
	
126.10				Ending June 30
	
126.11					2008
		2009

126.12	Sec. 3. COMMERCE

126.13	Transfers In
					
126.14 	The commissioner of finance shall transfer 
126.15 	$2,000,000 from the unencumbered balance 
126.16 	of the insurance fraud prevention account in 
126.17 	the special revenue fund to the general fund 
126.18 	by July 31, 2008.
126.19 	The commissioner of finance shall transfer 
126.20 	$25,000,000 from the balance in the workers' 
126.21 	compensation assigned risk plan to the 
126.22 	general fund by June 30, 2009.
126.23 	The commissioner of finance shall not make 
126.24 	any refunds for registration or notice filing 
126.25 	of securities under amended Minnesota 
126.26 	Statutes, section 80A.28, after July 1, 2007. 
126.27 	It is estimated the revenue to the general fund 
126.28 	for fiscal year 2008 and fiscal year 2009 will 
126.29 	total $20,500,000.

126.30
126.31	Sec. 4. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

126.32	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(3,375,000)
	
127.1 	The appropriation additions or reductions 
127.2 	for each purpose are shown in the following 
127.3 	subdivisions.

127.4
127.5	Subd. 2.Business and Community 
Development

127.6	(a) Minnesota Investment Fund
				(4,000,000)
	
127.7 	This reduction is from the appropriation in 
127.8 	Laws 2007, chapter 135, article 1, section 
127.9 	3, subdivision 2, paragraph (bb), for the 
127.10 	Minnesota investment fund program.

127.11	(b) Major Economic Design Project
				100,000
	
127.12 	To construct a major economic design 
127.13 	project to increase Minnesota's 
127.14 	competitiveness by expanding and 
127.15 	strengthening nanotechnology, which is a 
127.16 	core enabling technology.
127.17 	The major economic design project must: 
127.18 	(1) ensure that the proposed focuses, 
127.19 	components, programs, and other elements 
127.20 	are well developed for industrial and 
127.21 	academic collaboration in commercialization 
127.22 	of intellectual property;
127.23 	(2) develop mechanisms for grant 
127.24 	management and coordination of 
127.25 	infrastructure;
127.26 	(3) interface with an emerging independently 
127.27 	funded economic impact analysis;
127.28 	(4) ensure that information regarding job 
127.29 	creation is leveraged;
127.30 	(5) interact with and learn from leading 
127.31 	science and technology economic 
127.32 	development initiatives in other states;
128.1 	(6) educate executive and legislative 
128.2 	branches of government and selected other 
128.3 	parties about the technological and economic 
128.4 	benefits of nanotechnology as an enabling 
128.5 	technology; and
128.6 	(7) develop at least a preliminary 
128.7 	implementation plan and timeline for 
128.8 	launching the major economic design project 
128.9 	to expand and strengthen Minnesota's 
128.10 	nanotechnology.
128.11 	This is a onetime appropriation and is 
128.12 	available until expended. 

128.13	Subd. 3.Workforce Development
 				525,000
	
128.14 	$75,000 is for a grant to Lifetrack Resources 
128.15 	for a onetime pilot project in Rochester 
128.16 	focusing on immigrant and refugee 
128.17 	collaborative programs, including those 
128.18 	related to job-seeking skills and workplace 
128.19 	orientation, intensive job development, 
128.20 	functional work English, and on-site job 
128.21 	coaching. 
128.22 	$250,000 is a onetime appropriation for 
128.23 	transfer to the revolving loan account created 
128.24 	in Minnesota Statutes, section 116J.996, 
128.25 	subdivision 3, for the military reservist 
128.26 	economic injury loan program, resulting 
128.27 	from a call to active military duty.
128.28 	$200,000 is for a grant to HIRED to operate 
128.29 	its industry sector training initiatives, which 
128.30 	provide employee training developed in 
128.31 	collaboration with employers in specific, 
128.32 	high-demand industries. This appropriation 
128.33 	is added to the agency's budget base.

128.34	Subd. 4. Cancellations
 					
129.1 	By July 31, 2008, the commissioner of 
129.2 	finance shall cancel the unencumbered 
129.3 	balance of the appropriation in Laws 2005, 
129.4 	First Special Session chapter 3, article 10, 
129.5 	section 23, to the foreign trade zone authority, 
129.6 	estimated to be $608,000, to the general fund.
129.7 	By July 31, 2008, the commissioner of 
129.8 	finance shall cancel $500,000 of the balance 
129.9 	in the job skills partnership account to the 
129.10 	general fund.

129.11	Subd. 5.Transfers In
 					
129.12 	By July 31, 2008, the commissioner of 
129.13 	finance shall transfer the unencumbered 
129.14 	balance of the appropriation in Laws 
129.15 	2005, First Special Session chapter 1, 
129.16 	article 3, section 2, subdivision 2, for 
129.17 	the methamphetamine laboratory cleanup 
129.18 	revolving loan account in the public facilities 
129.19 	authority fund, estimated to be $150,000, to 
129.20 	the general fund.
129.21 	By July 31, 2008, the commissioner of 
129.22 	finance shall transfer $8,000,000 of the 
129.23 	unencumbered balance in the workforce 
129.24 	development fund to the general fund.
129.25 	By June 30, 2009, the commissioner of 
129.26 	finance shall transfer $2,700,000 of the 
129.27 	unencumbered balance in the Minnesota 
129.28 	investment revolving loan account in the 
129.29 	special revenue fund to the general fund.

129.30	Sec. 5. EXPLORE MINNESOTA TOURISM
 	$
	-0-
	$
	2,150,000
	
129.31 	$2,150,000 is for a grant to the Minnesota 
129.32 	Film and TV Board for the jobs production 
129.33 	program under Minnesota Statutes, section 
129.34 	116U.26. This is a onetime appropriation and 
130.1 	is in addition to any other appropriation for 
130.2 	the jobs program under Minnesota Statutes, 
130.3 	section 116U.26. This appropriation is 
130.4 	available until expended.
130.5 	$500,000 of the balance in the special 
130.6 	marketing account established pursuant to 
130.7 	Laws 2005, First Special Session chapter 
130.8 	1, article 3, section 6, must be used for a 
130.9 	onetime grant to the Minnesota Film and 
130.10 	TV Board for the filming of a movie in 
130.11 	Minnesota in calendar years 2008 and 2009. 
130.12 	The grant is in addition to any payments 
130.13 	made for the same purpose from the film 
130.14 	production jobs program under Minnesota 
130.15 	Statutes, section 116U.26. This appropriation 
130.16 	is available until expended.

130.17	Sec. 6. HOUSING FINANCE AGENCY
 	$
	-0-
	$
	(200,000)
	
130.18 	This is a onetime reduction.

130.19	Sec. 7. LABOR AND INDUSTRY
 					
130.20 	By June 30, 2009, the commissioner of 
130.21 	finance shall transfer $4,000,000 from the 
130.22 	code consolidation fund to the general fund.

130.23
130.24	Sec. 8. MINNESOTA HISTORICAL 
SOCIETY
 	$
	500,000
	$
	(200,000)
	
130.25 	$500,000 is a onetime appropriation for the 
130.26 	Minnesota Sesquicentennial Commission. 
130.27 	The Minnesota Historical Society, the State 
130.28 	Arts Board, and Explore Minnesota Tourism 
130.29 	may assist the commission in designing 
130.30 	and implementing the grants program. 
130.31 	The commission shall encourage private 
130.32 	contributions to match the state money to the 
130.33 	greatest extent possible. Any gifts, pledges, 
131.1 	membership fees, or contributions received 
131.2 	by the commission are appropriated to the 
131.3 	commission. This appropriation is available 
131.4 	until June 30, 2009.
131.5 	$200,000 is a general reduction that 
131.6 	the society shall allocate among agency 
131.7 	operations.

131.8	Sec. 9. BOARD OF THE ARTS
 	$
	-0-
	$
	(175,000)
	
131.9 	This reduction is from the appropriation in 
131.10 	Laws 2007, chapter 135, article 1, section 10, 
131.11 	subdivision 3, for the grants program. This is 
131.12 	a onetime reduction.

131.13 	Sec. 10. Minnesota Statutes 2007 Supplement, section 80A.28, subdivision 1, is 
131.14 	amended to read:
131.15 		Subdivision 1.Registration or notice filing fee. (a) There shall be a filing fee of 
131.16 	$100 for every application for registration or notice filing. There shall be an additional fee 
131.17 	of one-tenth of one percent of the maximum aggregate offering price at which the securities 
131.18 	are to be offered in this state, and the maximum combined fees shall not exceed $300.
131.19 	(b) When an application for registration is withdrawn before the effective date or a 
131.20 	preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100 
131.21 	filing fee shall be returned. If an application to register securities is denied, the total of all 
131.22 	fees received shall be retained. 
131.23 	(c) Where a filing is made in connection with a federal covered security under 
131.24 	section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 
131.25 	If the filing is made in connection with redeemable securities issued by an open end 
131.26 	management company or unit investment trust, as defined in the Investment Company Act 
131.27 	of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 
131.28 	offering price at which the securities are to be offered in this state during the notice filing 
131.29 	period. The fee must be paid at the time of the initial filing and thereafter in connection 
131.30 	with each renewal no later than July 1 of each year and must be sufficient to cover the 
131.31 	shares the issuer expects to sell in this state over the next 12 months. If during a current 
131.32 	notice filing the issuer determines it is likely to sell shares in excess of the shares for 
131.33 	which fees have been paid to the commissioner, the issuer shall submit an amended notice 
131.34 	filing to the commissioner under section 80A.122, subdivision 1, clause (3), together with 
132.1 	a fee of 1/20 of one percent of the maximum aggregate offering price of the additional 
132.2 	shares. Shares for which a fee has been paid, but which have not been sold at the time 
132.3 	of expiration of the notice filing, may not be sold unless an additional fee to cover the 
132.4 	shares has been paid to the commissioner as provided in this section and section 80A.122, 
132.5 	subdivision 4a. If the filing is made in connection with redeemable securities issued by 
132.6 	such a company or trust, there is no maximum fee for securities filings made according to 
132.7 	this paragraph. If the filing is made in connection with any other federal covered security 
132.8 	under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth 
132.9 	of one percent of the maximum aggregate offering price at which the securities are to be 
132.10 	offered in this state, and the combined fees shall not exceed $300. Beginning with fiscal 
132.11 	year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year, 
132.12 	the commissioner shall determine the total amount of all fees that were collected under 
132.13 	this paragraph in connection with any filings made for that fiscal year for securities of an 
132.14 	open-end investment company on behalf of a security that is a federal covered security 
132.15 	pursuant to section 18(b)(2) of the Securities Act of 1933. To the extent the total fees 
132.16 	collected by the commissioner in connection with these filings exceed $25,600,000 in a 
132.17 	fiscal year, the commissioner shall refund, on a pro rata basis, to all persons who paid any 
132.18 	fees for that fiscal year, the amount of fees collected by the commissioner in excess of 
132.19 	$25,600,000. No individual refund is required of amounts of $100 or less for a fiscal year. 

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

132.21 	Sec. 11. Minnesota Statutes 2006, section 116J.423, is amended by adding a 
132.22 	subdivision to read:
132.23 		Subd. 2a.Grants authorized. Notwithstanding subdivision 2, the commissioner 
132.24 	may use money in the fund to make grants to a county, or to a county regional rail authority 
132.25 	as appropriate, for public infrastructure needed to support an eligible project under this 
132.26 	section. Grant money may be used by the county or regional rail authority to acquire 
132.27 	right-of-way and mitigate loss of wetlands and runoff of storm water; to predesign, design, 
132.28 	construct, and equip roads and rail lines; and, in cooperation with municipal utilities, to 
132.29 	predesign, design, construct, and equip natural gas pipelines, electric infrastructure, water 
132.30 	supply systems, and wastewater collection and treatment systems. Grants made under this 
132.31 	subdivision are available until expended.

132.32 	Sec. 12. [116J.996] MILITARY RESERVIST ECONOMIC INJURY LOANS.
132.33 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
132.34 	section.
133.1 	(b) "Active service" has the meaning given in section 190.05.
133.2 	(c) "Commissioner" means the commissioner of employment and economic 
133.3 	development.
133.4 	(d) "Eligible business" means a small business, as defined in section 645.445, that 
133.5 	was operating in Minnesota on the date a military reservist received orders for active 
133.6 	service.
133.7 	(e) "Essential employee" means a military reservist who is an owner or employee 
133.8 	of an eligible business and whose managerial or technical expertise is critical to the 
133.9 	day-to-day operation of the eligible business.
133.10 	(f) "Military reservist" means a member of the reserve component of the armed 
133.11 	forces.
133.12 	(g) "Reserve component of the armed forces" has the meaning given it in United 
133.13 	States Code, title 10, section 101(c).
133.14 	(h) "Substantial economic injury" means an economic harm to an eligible business 
133.15 	that results in the inability of the eligible business to:
133.16 	(1) meet its obligations as they mature;
133.17 	(2) pay its ordinary and necessary operating expenses; or
133.18 	(3) manufacture, produce, market, or provide a product or service ordinarily 
133.19 	manufactured, produced, marketed, or provided by the eligible business.
133.20 		Subd. 2.Loan program. The commissioner may make onetime, interest-free loans 
133.21 	of up to $20,000 per borrower to eligible businesses that have sustained or are likely to 
133.22 	sustain substantial economic injury as a result of the call to active service for 180 days 
133.23 	or more of an essential employee. Loans must be made for the purpose of preventing, 
133.24 	remedying, or ameliorating the substantial economic injury.
133.25 		Subd. 3.Revolving loan account. The commissioner shall use money appropriated 
133.26 	for the purpose to establish a revolving loan account. All repayments of loans made 
133.27 	under this section must be deposited into this account. Interest earned on money in the 
133.28 	account accrues to the account. Money in the account is appropriated to the commissioner 
133.29 	for purposes of the loan program created in this section, including costs incurred by the 
133.30 	commissioner to establish and administer the program.
133.31 		Subd. 4.Rules. Using the expedited rulemaking procedures of section 14.389, the 
133.32 	commissioner shall develop and publish expedited rules for loan applications, use of 
133.33 	funds, needed collateral, terms of loans, and other details of military reservist economic 
133.34 	injury loans.

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

134.1 	Sec. 13. Minnesota Statutes 2006, section 116L.04, subdivision 1, is amended to read:
134.2 		Subdivision 1.Partnership program. (a) The partnership program may provide 
134.3 	grants-in-aid to educational or other nonprofit educational institutions using the following 
134.4 	guidelines:
134.5 	(1) the educational or other nonprofit educational institution is a provider of training 
134.6 	within the state in either the public or private sector;
134.7 	(2) the program involves skills training that is an area of employment need; and
134.8 	(3) preference will be given to educational or other nonprofit training institutions 
134.9 	which serve economically disadvantaged people, minorities, or those who are victims of 
134.10 	economic dislocation and to businesses located in rural areas.
134.11 	(b) A single grant to any one institution shall not exceed $400,000. A portion of a 
134.12 	grant may be used for preemployment training.
134.13 	(c) Each institution must provide for the dissemination of summary results of a 
134.14 	grant-funded project, including, but not limited to, information about curriculum and 
134.15 	all supporting materials developed in conjunction with the grant. Results of projects 
134.16 	developed by any Minnesota State Colleges and Universities system institution must 
134.17 	be disseminated throughout the system.

134.18 	Sec. 14. Minnesota Statutes 2006, section 116L.05, subdivision 3, is amended to read:
134.19 		Subd. 3.Use of funds. The Job Skills Partnership Board may use up to six percent 
134.20 	of any funds it receives, regardless of the source, for activities authorized under section 
134.21 	116L.04, subdivision 2. The board may also use a portion of these funds to collect and 
134.22 	disseminate information on the activities under section 116L.04, subdivision 2. The board 
134.23 	must plan for the statewide dissemination of the results, curriculum, and supporting 
134.24 	materials of these grant-funded projects.

134.25 	Sec. 15. Minnesota Statutes 2006, section 116L.05, subdivision 5, is amended to read:
134.26 		Subd. 5.Use of workforce development funds. After March 1 of any fiscal year, 
134.27 	the board may use workforce development funds for the purposes outlined in sections 
134.28 	116L.04, 116L.06, and 116L.10 to 116L.14, or to provide incumbent worker training 
134.29 	services under section 116L.18 if the following conditions have been met:
134.30 	(1) the board examines relevant economic indicators, including the projected 
134.31 	number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of 
134.32 	declining and expanding industries, the number of initial applications for and the number 
134.33 	of exhaustions of unemployment benefits, job vacancy data, and any additional relevant 
134.34 	information brought to the board's attention;
135.1 	(2) the board accounts for all allocations made in section 116L.17, subdivision 2;
135.2 	(3) based on the past expenditures and projected revenue, the board estimates future 
135.3 	funding needs for services under section 116L.17 for the remainder of the current fiscal 
135.4 	year and the next fiscal year;
135.5 	(4) the board determines there will be unspent funds after meeting the needs of 
135.6 	dislocated workers in the current fiscal year and there will be sufficient revenue to meet 
135.7 	the needs of dislocated workers in the next fiscal year; and
135.8 	(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative 
135.9 	committees with jurisdiction over the workforce development fund, to the commissioners 
135.10 	of revenue and finance, and to the public.

135.11 	Sec. 16. Minnesota Statutes 2006, section 116L.16, is amended to read:
135.12 	116L.16 DISTANCE-WORK GRANTS.
135.13 	The Job Skills Partnership Board may make grants-in-aid for distance-work 
135.14 	projects. The purpose of the grants is to promote distance-work projects involving 
135.15 	technology in rural areas and may include a consortium of organizations partnering 
135.16 	in the development of rural technology industry. Grants may be used to identify and 
135.17 	train rural workers in technology, act as a catalyst to bring together employers and rural 
135.18 	employees to perform distance work, and provide rural workers with physical connections 
135.19 	to telecommunications infrastructure, where necessary, in order to be self-employed or 
135.20 	employed from their homes or satellite offices. Grants must be made according to sections 
135.21 	116L.02 and 116L.04, except that: 
135.22 	(1) the business match may include, but is not limited to, office space; 
135.23 	additional management or technology staff costs; start-up equipment costs such as 
135.24 	telecommunications infrastructure, additional software, or computer upgrades; consulting 
135.25 	fees for implementation of distance-work policies or identification and skill assessment 
135.26 	of potential employees; and the joint financial contribution of two or more businesses 
135.27 	acting as a consortium;
135.28 	(2) cash or in-kind contributions by partnering organizations may be used as a match;
135.29 	(3) eligible grantees may be educational or nonprofit educational training 
135.30 	organizations; and 
135.31 	(4) grants-in-aid may be packaged with loans under section 116L.06, subdivision 
135.32 	6; and
135.33 	(5) with respect to grants serving as a catalyst to bring together employers and rural 
135.34 	employees to perform distance work, the match must be at least one-to-two.
136.1 	The board shall, to the extent there are sufficient applications, make grant awards 
136.2 	to as many parts of the state as possible. Subject to the requirement for geographic 
136.3 	distribution of grants, preference shall be given to grant applications that provide the most 
136.4 	cost-effective training proposals, that provide the best prospects for high-paying jobs 
136.5 	with high retention rates, or that are from more economically distressed rural areas or 
136.6 	communities.
136.7 	Grantees must meet reporting and evaluation requirements established by the board.

136.8 	Sec. 17. Minnesota Statutes 2007 Supplement, section 116L.17, subdivision 1, is 
136.9 	amended to read:
136.10 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
136.11 	have the meanings given them in this subdivision.
136.12 	(b) "Commissioner" means the commissioner of employment and economic 
136.13 	development.
136.14 	(c) "Dislocated worker" means an individual who is a resident of Minnesota at the 
136.15 	time employment ceased or was working in the state at the time employment ceased and:
136.16 	(1) has been permanently separated or has received a notice of permanent separation 
136.17 	from public or private sector employment and is eligible for or has exhausted entitlement 
136.18 	to unemployment benefits, and is unlikely to return to the previous industry or occupation;
136.19 	(2) has been long-term unemployed and has limited opportunities for employment 
136.20 	or reemployment in the same or a similar occupation in the area in which the individual 
136.21 	resides, including older individuals who may have substantial barriers to employment by 
136.22 	reason of age;
136.23 	(3) has been terminated or has received a notice of termination of employment as a 
136.24 	result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
136.25 	(4) has been self-employed, including farmers and ranchers, and is unemployed as a 
136.26 	result of general economic conditions in the community in which the individual resides 
136.27 	or because of natural disasters;
136.28 	(5) has been permanently separated from employment in a restaurant, bar, or 
136.29 	lawful gambling organization from October 1, 2007, to October 1, 2009, due to the 
136.30 	implementation of any state law prohibiting smoking; or
136.31 	(6) is a veteran as defined by section 197.447, has been discharged or released from 
136.32 	active duty under honorable conditions within the last 36 months, and (i) is unemployed or 
136.33 	(ii) is employed in a job which pays less than what the veteran could verifiably earn; or
136.34 	(6)(7) is a displaced homemaker. A "displaced homemaker" is an individual who 
136.35 	has spent a substantial number of years in the home providing homemaking service and 
137.1 	(i) has been dependent upon the financial support of another; and now due to divorce, 
137.2 	separation, death, or disability of that person, must find employment to self support; or (ii) 
137.3 	derived the substantial share of support from public assistance on account of dependents 
137.4 	in the home and no longer receives such support.
137.5 	To be eligible under this clause, the support must have ceased while the worker 
137.6 	resided in Minnesota.
137.7 	(d) "Eligible organization" means a state or local government unit, nonprofit 
137.8 	organization, community action agency, business organization or association, or labor 
137.9 	organization.
137.10 	(e) "Plant closing" means the announced or actual permanent shutdown of a single 
137.11 	site of employment, or one or more facilities or operating units within a single site of 
137.12 	employment.
137.13 	(f) "Substantial layoff" means a permanent reduction in the workforce, which is 
137.14 	not a result of a plant closing, and which results in an employment loss at a single site 
137.15 	of employment during any 30-day period for at least 50 employees excluding those 
137.16 	employees that work less than 20 hours per week.

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

137.18 	Sec. 18. Minnesota Statutes 2006, section 116L.20, subdivision 2, is amended to read:
137.19 		Subd. 2.Disbursement of special assessment funds. (a) The money collected 
137.20 	under this section shall be deposited in the state treasury and credited to the workforce 
137.21 	development fund to provide for employment and training programs. The workforce 
137.22 	development fund is created as a special account in the state treasury.
137.23 	(b) All money in the fund not otherwise appropriated or transferred is appropriated 
137.24 	to the Job Skills Partnership Board for the purposes of section 116L.17 and as provided for 
137.25 	in paragraph (d). The board must act as the fiscal agent for the money and must disburse 
137.26 	that money for the purposes of section 116L.17, not allowing the money to be used for 
137.27 	any other obligation of the state. All money in the workforce development fund shall be 
137.28 	deposited, administered, and disbursed in the same manner and under the same conditions 
137.29 	and requirements as are provided by law for the other special accounts in the state treasury, 
137.30 	except that all interest or net income resulting from the investment or deposit of money in 
137.31 	the fund shall accrue to the fund for the purposes of the fund.
137.32 	(c) Reimbursement for costs related to collection of the special assessment shall be 
137.33 	in an amount negotiated between the commissioner and the United States Department 
137.34 	of Labor.
138.1 	(d) If the board determines that the conditions of section 116L.05, subdivision 5, 
138.2 	have been met, the board may use funds for the purposes outlined in sections 116L.04, 
138.3 	116L.06, and 116L.10 to 116L.14, or to provide incumbent worker training services under 
138.4 	section 116L.18.

138.5 	Sec. 19. Minnesota Statutes 2006, section 116U.26, is amended to read:
138.6 	116U.26 FILM JOBS PRODUCTION PROGRAM.
138.7 	(a) The film production jobs program is created. The program shall be operated 
138.8 	by the Minnesota Film and TV Board with administrative oversight and control by the 
138.9 	director of Explore Minnesota Tourism. The program shall make payment to producers of 
138.10 	feature films, national television programs, documentaries, music videos, and commercials 
138.11 	that directly create new film jobs in Minnesota. To be eligible for a payment, a producer 
138.12 	must submit documentation to the Minnesota Film and TV Board of expenditures for 
138.13 	production costs incurred in Minnesota that are directly attributable to the production 
138.14 	in Minnesota of a film product. 
138.15 	The Minnesota Film and TV Board shall make recommendations to the director of 
138.16 	Explore Minnesota Tourism about program payment, but the director has the authority to 
138.17 	make the final determination on payments. The director's determination must be based 
138.18 	on proper documentation of eligible production costs submitted for payments. No more 
138.19 	than five percent of the funds appropriated for the program in any year may be expended 
138.20 	for administration. 
138.21 	(b) For the purposes of this section:
138.22 	(1) "production costs" means the cost of the following:
138.23 	(i) a story and scenario to be used for a film;
138.24 	(ii) salaries of talent, management, and labor, including payments to personal 
138.25 	services corporations for the services of a performing artist;
138.26 	(iii) set construction and operations, wardrobe, accessories, and related services;
138.27 	(iv) photography, sound synchronization, lighting, and related services;
138.28 	(v) editing and related services;
138.29 	(vi) rental of facilities and equipment; or
138.30 	(vii) other direct costs of producing the film in accordance with generally accepted 
138.31 	entertainment industry practice; and
138.32 	(2) "film" means a movie, television show, documentary, music video, or television 
138.33 	commercial, whether on film or video. Film does not include news, current events, public 
138.34 	programming, or a program that includes weather or market reports; a talk show; a 
138.35 	production with respect to a questionnaire or contest; a sports event or sports activity; a 
139.1 	gala presentation or awards show; a finished production that solicits funds; or a production 
139.2 	for which the production company is required under United States Code, title 18, section 
139.3 	2257, to maintain records with respect to a performer portrayed in a single-media or 
139.4 	multimedia program.
139.5 	(c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board 
139.6 	may make reimbursements of up to 20 percent of film production costs for films that incur 
139.7 	production costs in excess of $5,000,000 in Minnesota within a 12-month period.

139.8 	EFFECTIVE DATE. This section is effective for films that are certified by the 
139.9 	Minnesota Film and TV Board on or after the day following final enactment. 

139.10 	Sec. 20. Minnesota Statutes 2006, section 298.2214, subdivision 1, is amended to read:
139.11 		Subdivision 1.Creation of committee; purpose. A committee is created to advise 
139.12 	the commissioner of Iron Range resources and rehabilitation Iron Range Resources and 
139.13 	Rehabilitation Board on providing higher education programs in the taconite assistance 
139.14 	area defined in section 273.1341. The committee is subject to section 15.059. 

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

139.16 	Sec. 21. Minnesota Statutes 2006, section 298.2214, subdivision 2, as amended by 
139.17 	Laws 2008, chapter 154, article 8, section 4, is amended to read:
139.18 		Subd. 2. Iron Range Higher Education Committee; membership. The members 
139.19 	of the committee shall consist of: 
139.20 	(1) one member appointed by the governor; 
139.21 	(2) one member appointed by the president of the University of Minnesota; 
139.22 	(3) four members of the Iron Range Resources and Rehabilitation Board appointed 
139.23 	by the chair; 
139.24 	(4) the commissioner of Iron Range resources and rehabilitation one member 
139.25 	appointed by the chancellor of the Minnesota State Colleges and Universities; and 
139.26 	(5) the president of the Northeast Higher Education District or its successor.

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

139.28 	Sec. 22. Minnesota Statutes 2006, section 298.223, subdivision 2, is amended to read:
139.29 		Subd. 2.Administration. (a) The taconite area environmental protection fund shall 
139.30 	be administered by the commissioner of the Iron Range Resources and Rehabilitation 
139.31 	Board. The commissioner shall by September 1 of each year submit to the board a list 
139.32 	of projects to be funded from the taconite area environmental protection fund, with such 
140.1 	supporting information including description of the projects, plans, and cost estimates as 
140.2 	may be necessary. 
140.3 	(b) Each year no less than one-half of the amounts deposited into the taconite 
140.4 	environmental protection fund must be used for public works projects, including 
140.5 	construction of sewer and water systems, as specified under subdivision 1, paragraph (c). 
140.6 	The Iron Range Resources and Rehabilitation Board with a majority vote of the members, 
140.7 	may waive the requirements of this paragraph. 
140.8 	(c) Upon approval by a majority of the members of the Iron Range Resources and 
140.9 	Rehabilitation Board, thisthe list of projects approved under this subdivision shall be 
140.10 	submitted to the governor by November 1 of each year. By December 1 of each year, the 
140.11 	governor shall approve or disapprove, or return for further consideration, each project. 
140.12 	Funds for a project may be expended only upon approval of the project by the board and 
140.13 	governor. The commissioner may submit supplemental projects to the board and governor 
140.14 	for approval at any time.

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

140.16 	Sec. 23. Minnesota Statutes 2007 Supplement, section 298.227, is amended to read:
140.17 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
140.18 	For distributions prior to January 1, 2009, an amount equal to that distributed 
140.19 	pursuant to each taconite producer's taxable production and qualifying sales under section 
140.20 	298.28, subdivision 9a, shall be held by the Iron Range Resources and Rehabilitation 
140.21 	Board in a separate taconite economic development fund for each taconite and direct 
140.22 	reduced ore producer. Money from the fund for each producer shall be released by 
140.23 	the commissioner after review by a joint committee consisting of an equal number of 
140.24 	representatives of the salaried employees and the nonsalaried production and maintenance 
140.25 	employees of that producer. The District 11 director of the United States Steelworkers of 
140.26 	America, on advice of each local employee president, shall select the employee members. 
140.27 	In nonorganized operations, the employee committee shall be elected by the nonsalaried 
140.28 	production and maintenance employees. The review must be completed no later than 
140.29 	six months after the producer presents a proposal for expenditure of the funds to the 
140.30 	committee. The funds held pursuant to this section may be released only for acquisition 
140.31 	of plant and stationary mining equipment and facilities for the producer or for research 
140.32 	and development in Minnesota on new mining, or taconite, iron, or steel production 
140.33 	technology, but only if the producer provides a matching expenditure to be used for 
140.34 	the same purpose of at least 50 percent of the distribution based on 14.7 cents per ton 
141.1 	beginning with distributions in 2002. Effective for proposals for expenditures of money 
141.2 	from the fund beginning May 26, 2007, the commissioner may not release the funds before 
141.3 	the next scheduled meeting of the board. If the board rejects a proposed expenditure, the 
141.4 	funds must be deposited in the Taconite Environmental Protection Fund under sections 
141.5 	298.222 to 298.225. If a producer uses money which has been released from the fund 
141.6 	prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, 
141.7 	and the producer removes the piece of equipment from the taconite tax relief area defined 
141.8 	in section 273.134 within ten years from the date of receipt of the money from the fund, 
141.9 	a portion of the money granted from the fund must be repaid to the taconite economic 
141.10 	development fund. The portion of the money to be repaid is 100 percent of the grant if the 
141.11 	equipment is removed from the taconite tax relief area within 12 months after receipt of 
141.12 	the money from the fund, declining by ten percent for each of the subsequent nine years 
141.13 	during which the equipment remains within the taconite tax relief area. If a taconite 
141.14 	production facility is sold after operations at the facility had ceased, any money remaining 
141.15 	in the fund for the former producer may be released to the purchaser of the facility on 
141.16 	the terms otherwise applicable to the former producer under this section. If a producer 
141.17 	fails to provide matching funds for a proposed expenditure within six months after the 
141.18 	commissioner approves release of the funds, the funds are available for release to another 
141.19 	producer in proportion to the distribution provided and under the conditions of this section. 
141.20 	Any portion of the fund which is not released by the commissioner within two years of its 
141.21 	deposit in the fund shall be divided between the taconite environmental protection fund 
141.22 	created in section 298.223 and the Douglas J. Johnson economic protection trust fund 
141.23 	created in section 298.292 for placement in their respective special accounts. Two-thirds 
141.24 	of the unreleased funds shall be distributed to the taconite environmental protection fund 
141.25 	and one-third to the Douglas J. Johnson economic protection trust fund. 

141.26 	Sec. 24. Minnesota Statutes 2006, section 298.292, subdivision 2, as amended by Laws 
141.27 	2008, chapter 154, article 8, section 11, is amended to read:
141.28 		Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust 
141.29 	fund may be used for the following purposes: 
141.30 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of 
141.31 	participation with private sources of financing, but a loan to a private enterprise shall be 
141.32 	for a principal amount not to exceed one-half of the cost of the project for which financing 
141.33 	is sought, and the rate of interest on a loan to a private enterprise shall be no less than the 
141.34 	lesser of eight percent or an interest rate three percentage points less than a full faith 
142.1 	and credit obligation of the United States government of comparable maturity, at the 
142.2 	time that the loan is approved; 
142.3 	(2) to fund reserve accounts established to secure the payment when due of the 
142.4 	principal of and interest on bonds issued pursuant to section 298.2211; 
142.5 	(3) to pay in periodic payments or in a lump sum payment any or all of the interest 
142.6 	on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, 
142.7 	or retrofitting heating facilities in connection with district heating systems or systems 
142.8 	utilizing alternative energy sources; 
142.9 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
142.10 	entities that are engaging in, or that will engage in, projects or programs that have the 
142.11 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
142.12 	or enterprise unless at least two other unrelated investors make investments of at least 
142.13 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas 
142.14 	J. Johnson economic protection trust fund may not exceed the amount of the largest 
142.15 	investment by an unrelated investor in the venture capital fund or enterprise. For purposes 
142.16 	of this subdivision, an "unrelated investor" is a person or entity that is not related to 
142.17 	the entity in which the investment is made or to any individual who owns more than 40 
142.18 	percent of the value of the entity, in any of the following relationships: spouse, parent, 
142.19 	child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of 
142.20 	the value of all interests in it. For purposes of determining the limitations under this 
142.21 	clause, the amount of investments made by an investor other than the Douglas J. Johnson 
142.22 	economic protection trust fund is the sum of all investments made in the venture capital 
142.23 	fund or enterprise during the period beginning one year before the date of the investment 
142.24 	by the Douglas J. Johnson economic protection trust fund; and 
142.25 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341
142.26 	to be held and managed as a public trust for the benefit of the area for the purposes 
142.27 	authorized in section 298.22, subdivision 5a. Property purchased under this section may 
142.28 	be sold upon approval by a majority vote of the board. The net proceeds must be deposited 
142.29 	in the trust fund for the purposes and uses of this section.
142.30 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
142.31 	assistance area defined in section 273.1341. 

142.32 	Sec. 25. Minnesota Statutes 2006, section 298.2961, subdivision 2, is amended to read:
142.33 		Subd. 2.Projects; approval. (a) Projects funded must be for:
142.34 	(1) environmentally unique reclamation projects; or
143.1 	(2) pit or plant repairs, expansions, or modernizations other than for a value added 
143.2 	iron products plant; or
143.3 	(3) haulage trucks and equipment and mining shovels.
143.4 	(b) To be proposed by the board, a project must be approved by at least eight Iron 
143.5 	Range Resources and Rehabilitation Board members. The money for a project may 
143.6 	be spent only upon approval of the project by the governor. The board may submit 
143.7 	supplemental projects for approval at any time.
143.8 	(c) The board may require that it receive an equity percentage in any project to 
143.9 	which it contributes under this section.

143.10 	Sec. 26. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 3, 
143.11 	is amended to read:
143.12 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
143.13 	assistance, as provided in subdivision 5a to governmental units:
143.14 	(1) whose projects are listed on the Pollution Control Agency's project priority list;
143.15 	(2) that demonstrate their projects are a cost-effective solution to an existing 
143.16 	environmental or public health problem; and
143.17 	(3) whose projects are approved by the USDA/RECD or certified by the 
143.18 	commissioner of the Pollution Control Agency.
143.19 	(b) For a governmental unit receiving grant funding from the USDA/RECD, 
143.20 	applications must be made to the USDA/RECD with additional information submitted to 
143.21 	the authority as required by the authority. Eligible project costs and affordability criteria 
143.22 	shall be determined by the USDA/RECD.
143.23 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
143.24 	application must be made to the authority on forms prescribed by the authority for the 
143.25 	clean water revolving fund program with additional information as required by the 
143.26 	authority. In accordance with section 116.182, the Pollution Control Agency shall: 
143.27 	(1) calculate the essential project component percentage which must be multiplied 
143.28 	by the total project cost to determine the eligible project cost; and
143.29 	(2) review and certify approved projects to the authority.
143.30 	(d) At the time funds are appropriated under this section, Each fiscal year the 
143.31 	authority shall make funds available for projects based on their ranking on the Pollution 
143.32 	Control Agency's project priority list. The authority shall reserve supplemental assistance
143.33 	funds for projects in order of their rankings on the Pollution Control Agency's project 
143.34 	priority list and a project when the applicant receives a funding commitment from the 
143.35 	United States Department of Agriculture Rural Development (USDA/RECD) or submits 
144.1 	plans and specifications to the Pollution Control Agency. Funds must be reserved in an 
144.2 	amount based on their most recent the project cost estimates estimate submitted to the 
144.3 	authority orprior to the appropriation of the funds and awarded in the amount reserved 
144.4 	or an amount based on the as-bid costs, whichever is less.

144.5 	Sec. 27. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 5a, 
144.6 	is amended to read:
144.7 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving 
144.8 	grant funding from the USDA/RECD, the authority shall provide assistance in the form 
144.9 	of a grant of up to one-half 65 percent of the eligible grant amount need determined by 
144.10 	USDA/RECD. A governmental unit may not receive a grant under this paragraph for more 
144.11 	than $4,000,000 or $15,000 per existing connection, whichever is less, unless specifically 
144.12 	approved by law. In the case of a sanitary district or other multijurisdictional project for 
144.13 	which the USDA/RECD is unable to fully fund up to one-half its share of the eligible grant 
144.14 	amount need, the authority may provide up to an additional $1,000,000 for each additional 
144.15 	governmental unit participating up to a maximum of $8,000,000 or $15,000 per existing 
144.16 	connection, whichever is less, but not to exceed the maximum grant level determined by 
144.17 	the USDA/RECD as needed to keep the project affordable.
144.18 	(b) For a governmental unit not receiving grant funding from the USDA/RECD, 
144.19 	the authority shall provide assistance in the form of a loan for the eligible project costs 
144.20 	plus the outstanding balance on any existing wastewater system debt that together exceed 
144.21 	five percent of the market value of properties in the project service area, less the amount of 
144.22 	any other grant funding received by the governmental unit for the project. A governmental 
144.23 	unit may not receive a loan under this paragraph for more than $4,000,000 or $15,000 per 
144.24 	existing connection, whichever is less, unless specifically approved by law. In the case of 
144.25 	a sanitary district or other multijurisdictional project, the authority may provide a loan 
144.26 	under this paragraph for up to an additional $1,000,000 for each additional municipality 
144.27 	participating up to a maximum of $8,000,000 or $15,000 per existing connection, 
144.28 	whichever is less, unless specifically approved by law. A loan under this paragraph must 
144.29 	bear no interest, must be repaid as provided in subdivision 7, and must only be provided in 
144.30 	conjunction with a loan from the clean water revolving fund under section 446A.07. 
144.31 	(c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental unit 
144.32 	receiving supplemental assistance under this section after January 1, 2002, if the authority 
144.33 	determines that the governmental unit's construction and installation costs are significantly 
144.34 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
144.35 	limits that are more stringent than secondary treatment, the authority shall provide 
145.1 	assistance in the form of half grant and half loan. Assistance from the authority may not 
145.2 	be more than $25,000 per existing connection. Any additional grant amount received for 
145.3 	the same project must be used to reduce the amount of the governmental unit's loan from 
145.4 	the clean water pollution control revolving fund that exceeds five percent of the market 
145.5 	value of properties in the project service area.

145.6 	Sec. 28. Minnesota Statutes 2007 Supplement, section 446A.086, is amended to read:
145.7 	446A.086 STATE MAY GUARANTEE COUNTY GOVERNMENTAL UNIT
145.8 	BUILDING DEBT; REPAYMENT.
145.9 		Subdivision 1.Definitions. (a) As used in this section, the following terms have 
145.10 	the meanings given.
145.11 	(b) "Authority" means the Minnesota Public Facilities Authority.
145.12 	(c) "Commissioner" means the commissioner of finance.
145.13 	(d) "Debt obligation" means:
145.14 	(1) a general obligation bond issued by a county, a bond to which the general 
145.15 	obligation of a county is pledged under section 469.034, subdivision 2, or a bond payable 
145.16 	from a county lease obligation under section 641.24, to provide funds for the construction 
145.17 	of: 
145.18 	(1) (i) jails;
145.19 	(2) (ii) correctional facilities;
145.20 	(3) (iii) law enforcement facilities;
145.21 	(4) (iv) social services and human services facilities; 
145.22 	(5) (v) solid waste facilities; or
145.23 	(6) (vi) qualified housing development projects as defined in section 469.034, 
145.24 	subdivision 2; or
145.25 	(2) a general obligation bond issued by a governmental unit and acquired under the 
145.26 	credit enhanced bond program established under section 446A.087.
145.27 		Subd. 2.Application. (a) This section provides a state guarantee of the payment of 
145.28 	principal and interest on debt obligations if:
145.29 	(1) the obligations are issued after June 30, 2000;
145.30 	(2) application to the Public Facilities Authority is made before issuance; and
145.31 	(3) the obligations are covered by an agreement meeting the requirements of 
145.32 	subdivision 3.
145.33 	(b) Applications to be covered by the provisions of this section must be made in a 
145.34 	form and contain the information prescribed by the authority. Applications are subject to a 
146.1 	fee of $500 for the first each bond issue requested by the county and $250 for each bond 
146.2 	issue thereafter or applicable fees under section 446A.087.
146.3 	(c) Application fees paid under this section must be deposited in a separate county
146.4 	credit enhancement bond guarantee account in the general fund. Money in the county
146.5 	credit enhancement bond guarantee account is appropriated to the authority for purposes 
146.6 	of administering this section.
146.7 	(d) Neither the authority nor the commissioner is required to promulgate 
146.8 	administrative rules under this section and the procedures and requirements established by 
146.9 	the authority or commissioner under this section are not subject to chapter 14.
146.10 		Subd. 3.Agreement. (a) For specified debt obligations of a county to be covered 
146.11 	by this section, the county governmental unit must enter an agreement with the authority 
146.12 	obligating the county governmental unit to be bound by this section.
146.13 	(b) This agreement must be in a form prescribed by the authority and contain any 
146.14 	provisions required by the authority, including, at least, an obligation to:
146.15 	(1) deposit with the paying agent three days before the date on which the payment is 
146.16 	due an amount sufficient to make that payment or ten days prior to the date a payment is 
146.17 	due on revenue bonds issued by the authority under section 446A.087;
146.18 	(2) notify the authority, if the county governmental unit will be unable to make all 
146.19 	or a portion of the payment; and
146.20 	(3) include a provision in the bond resolution and county's agreement with the paying 
146.21 	agent for the debt obligation that requires the paying agent to inform the commissioner if 
146.22 	it becomes aware of a default or potential default in the payment of principal or interest 
146.23 	on that issue or if, on the day two business days before the date a payment is due on that 
146.24 	issue, there are insufficient funds to make the payment on deposit with the paying agent.
146.25 	(c) Funds invested in a refunding escrow account established under section 475.67
146.26 	that are to become available to the paying agent on a principal or interest payment date are 
146.27 	deemed to be on deposit with the paying agent three business days before the payment date. 
146.28 	(d) The provisions of an agreement under this subdivision are binding as to an issue 
146.29 	as long as any debt obligation of the issue remains outstanding.
146.30 	(e) This section and the obligations of the state under this section are not a public debt 
146.31 	of the state under article XI, section 4, of the Minnesota Constitution, and the legislature 
146.32 	may, at any time, choose not to appropriate amounts under subdivision 4, paragraph (b).
146.33 		Subd. 4.Notifications; payment; appropriation. (a) After receipt of a notice of a 
146.34 	default or potential default in payment of principal or interest in debt obligations covered 
146.35 	by this section or an agreement under this section, and after consultation with the county,
146.36 	governmental unit and the paying agent, and after verification of the accuracy of the 
147.1 	information provided, the authority shall notify the commissioner of the potential default. 
147.2 	The notice must include a final figure as to the amount due that the county governmental 
147.3 	unit will be unable to repay on the date due.
147.4 	(b) Upon receipt of this notice from the authority, the commissioner shall issue a 
147.5 	warrant and authorize the authority to pay to the bond holders or paying agent for the 
147.6 	debt obligation the specified amount on or before the date due. The amounts needed 
147.7 	for the purposes of this subdivision are annually appropriated to the authority from the 
147.8 	general fund.
147.9 		Subd. 5.Interest on state paid amount. If the state has paid part or all of the 
147.10 	principal or interest due on a county's debt obligation, the amount paid bears interest 
147.11 	from the date paid by the state until the date of repayment. The interest rate is the 
147.12 	commissioner's invested cash rate as it is certified by the commissioner. Interest only 
147.13 	accrues on the amounts paid and outstanding less the reduction in aid under subdivision 7 
147.14 	and other payments received from the county governmental unit.
147.15 		Subd. 6.Pledge of county's governmental unit's full faith and credit. If the 
147.16 	state has paid part or all of the principal or interest due on a county's debt obligation, 
147.17 	the county's governmental unit's pledge of its full faith and credit and unlimited taxing 
147.18 	powers to repay the principal and interest due on those debt obligations becomes, without 
147.19 	an election or the requirement of a further authorization, a pledge of the full faith and 
147.20 	credit and unlimited taxing powers of the county governmental unit to repay to the state 
147.21 	the amount paid, with interest. Amounts paid by the state must be repaid in the order 
147.22 	in which the state payments were made.
147.23 		Subd. 7.Aid reduction for repayment. (a) Except as provided in paragraph (b), 
147.24 	the commissioner may reduce, by the amount paid by the state under this section on behalf 
147.25 	of the county governmental unit, plus the interest due on the state payments, the county 
147.26 	program local government aid under section 477A.0124 chapter 477A. The amount of any 
147.27 	aid reduction reverts from the appropriate account to the state general fund.
147.28 	(b) If, after review of the financial situation of the county governmental unit, the 
147.29 	authority advises the commissioner that a total reduction of the aids would cause an 
147.30 	undue hardship on the county governmental unit, the authority, with the approval of the 
147.31 	commissioner, may establish a different schedule for reduction of aids to repay the state. 
147.32 	The amount of aids to be reduced are decreased by any amounts repaid to the state by the 
147.33 	county governmental unit from other revenue sources.
147.34 		Subd. 8.Tax levy for repayment. (a) With the approval of the authority, a county
147.35 	governmental unit may levy in the year the state makes a payment under this section an 
147.36 	amount up to the amount necessary to provide funds for the repayment of the amount 
148.1 	paid by the state plus interest through the date of estimated repayment by the county
148.2 	governmental unit. The proceeds of this levy may be used only for this purpose unless 
148.3 	they exceed the amount actually due. Any excess must be used to repay other state 
148.4 	payments made under this section or must be deposited in the debt redemption fund of 
148.5 	the county governmental unit. The amount of aids to be reduced to repay the state are 
148.6 	decreased by the amount levied.
148.7 	(b) If the state is not repaid in full for a payment made under this section by 
148.8 	November 30 of the calendar year following the year in which the state makes the 
148.9 	payment, the authority shall require the county governmental unit to certify a property 
148.10 	tax levy in an amount up to the amount necessary to provide funds for repayment of the 
148.11 	amount paid by the state plus interest through the date of estimated repayment by the 
148.12 	county governmental unit. To prevent undue hardship, the authority may allow the county
148.13 	governmental unit to certify the levy over a five-year period. The proceeds of the levy 
148.14 	may be used only for this purpose unless they are in excess of the amount actually due, in 
148.15 	which case the excess must be used to repay other state payments made under this section 
148.16 	or must be deposited in the debt redemption fund of the county governmental unit. If the 
148.17 	authority orders the county governmental unit to levy, the amount of aids reduced to repay 
148.18 	the state are decreased by the amount levied.
148.19 	(c) A levy under this subdivision is an increase in the levy limits of the county
148.20 	governmental unit for purposes of section 275.065, subdivision 6, and must be explained 
148.21 	as a specific increase at the meeting required under that provision. 
148.22 		Subd. 9.Mandatory plan; technical assistance. If the state makes payments on 
148.23 	behalf of a county governmental unit under this section or the county governmental unit
148.24 	defaults in the payment of principal or interest on an outstanding debt obligation, it must 
148.25 	submit a plan to the authority for approval specifying the measures it intends to implement 
148.26 	to resolve the issues which led to its inability to make the payment and to prevent 
148.27 	further defaults. If the authority determines that a county's governmental unit's plan is 
148.28 	not adequate, the authority shall notify the county governmental unit that the plan has 
148.29 	been disapproved, the reasons for the disapproval, and that the state will not make future 
148.30 	payments under this section for debt obligations of the affected county governmental unit
148.31 	issued after the date specified in that notice until its plan is approved. The authority may 
148.32 	also notify the county governmental unit that until its plan is approved, aids due the county
148.33 	governmental unit will be withheld after a date specified in the notice.
148.34 		Subd. 10.Continuing disclosure agreements. The authority may enter into written 
148.35 	agreements or contracts relating to the continuing disclosure of information needed to 
148.36 	facilitate the ability of counties governmental units to issue debt obligations according 
149.1 	to federal securities laws, rules, and regulations, including securities and exchange 
149.2 	commission rules and regulations, section 240.15c2-12. The agreements or contracts may 
149.3 	be in any form the authority deems reasonable and in the state's best interests.

149.4 	Sec. 29. [446A.087] CREDIT ENHANCED BOND PROGRAM.
149.5 		Subdivision 1.Establishment of program. A credit enhanced bond program is 
149.6 	established for the purposes set forth in subdivision 2.
149.7 		Subd. 2.Purpose. The purpose of the credit enhanced bond program is to 
149.8 	provide loans to governmental units through the purchase of general obligation bonds 
149.9 	of governmental units issued to finance all or a portion of the costs of a project. The 
149.10 	program shall include providing credit enhancement to the general obligation bonds of the 
149.11 	governmental unit through the guarantee program as provided in section 446A.086. The 
149.12 	authority shall obtain funds to make the loans authorized pursuant to this section through 
149.13 	the issuance of its revenue bonds payable from loan repayments pledged to the bonds, and 
149.14 	such other sources and security as are specifically pledged by the authority.
149.15 		Subd. 3.Definitions. (a) Terms used in this section have the meanings given to 
149.16 	them in this subdivision.
149.17 	(b) "Applicant" means any governmental unit applying to the authority for a loan 
149.18 	pursuant to this section.
149.19 	(c) "Borrower" means any governmental unit that has entered into a commitment 
149.20 	for the sale of its general obligation bonds to the authority pursuant to this section and 
149.21 	subsequently sells its general obligation bonds to the authority and enters into a regulatory 
149.22 	agreement.
149.23 	(d) "Commitment" means a written agreement between a governmental unit and the 
149.24 	authority obligating the governmental unit to deliver its general obligation bonds to the 
149.25 	authority on a date in the future evidencing a loan pursuant to this section and to enter 
149.26 	into a regulatory agreement with the authority, all upon the terms and conditions set 
149.27 	forth in the commitment.
149.28 	(e) "Eligible cost" means any cost of a project authorized by law to be financed from 
149.29 	the proceeds of general obligation bonds of a governmental unit.
149.30 	(f) "General obligation bonds" means bonds or notes secured by the full faith and 
149.31 	credit and unlimited taxing powers of a governmental unit.
149.32 	(g) "Project" means the construction, improvement, or rehabilitation of:
149.33 	(1) wastewater facilities;
149.34 	(2) drinking water facilities;
149.35 	(3) storm water facilities;
150.1 	(4) streets, street lighting, curbs, gutters, and sidewalks;
150.2 	(5) energy conservation or alternative energy sources for use in public buildings or 
150.3 	facilities;
150.4 	(6) telecommunications facilities;
150.5 	(7) public safety buildings including those providing police and fire protection; or
150.6 	(8) any publicly owned building or infrastructure improvement that has received 
150.7 	partial funding from grants awarded by the commissioner of employment and economic 
150.8 	development related to redevelopment, contaminated site cleanup, bioscience, small cities 
150.9 	development programs, and rural business infrastructure programs.
150.10 	(h) "Regulatory agreement" means a written agreement entered into by the authority 
150.11 	and a borrower in connection with the purchase of the borrower's general obligation bonds 
150.12 	by the authority pursuant to this section.
150.13 		Subd. 4.Establishment of fund and accounts. A credit enhancement bond 
150.14 	program fund is established for the purposes described in subdivision 2. Other accounts 
150.15 	may be established in the fund as necessary for its management and administration. 
150.16 	Money in the fund is annually appropriated to the authority and does not lapse. The fund 
150.17 	must be credited with investment income, and with repayments of principal and interest, 
150.18 	except for fees assessed under section 446A.04, subdivisions 5 and 15.
150.19 		Subd. 5.Management of fund and accounts. The authority shall manage and 
150.20 	administer the credit enhancement bond program fund and individual accounts in the fund. 
150.21 	For those purposes, the authority may exercise all powers provided in this chapter.
150.22 		Subd. 6.Applications. (a) Applicants for participation in the credit enhancement 
150.23 	bond program must submit an application to the authority on forms prescribed by the 
150.24 	authority. The applicant shall provide information customary to that needed for the 
150.25 	disclosure purposes in issuing general obligation bonds in the market, in addition to the 
150.26 	following information:
150.27 	(1) the total estimated cost of the project and the amount of general obligation 
150.28 	bond proceeds sought;
150.29 	(2) other sources of funding if the general obligation bond proceeds do not cover 
150.30 	the entire costs identified;
150.31 	(3) the proposed sources of funds to be used for repayment of the general obligation 
150.32 	bonds;
150.33 	(4) information showing the applicant's financial status and ability of the applicant 
150.34 	to repay loans;
150.35 	(5) the proposed term and principal repayment schedule for the general obligation 
150.36 	bonds of the applicant; and
151.1 	(6) the statutory authorization for the applicant to issue such general obligation 
151.2 	bonds, together with a statement that the statutory provision authorizes the use of proceeds 
151.3 	of such general obligation bonds to pay the costs of a project.
151.4 	(b) The authority may establish deadlines or time periods for the submission of 
151.5 	applications to facilitate funding loans from the proceeds of a specific bond issue proposed 
151.6 	or previously issued by the authority, or the authority may accept applications from time 
151.7 	to time.
151.8 	(c) Each application must be complete and accurate to be considered delivered to 
151.9 	and received by the authority or to be considered as having met any deadline established 
151.10 	by the authority with respect to an application period. If any application is determined by 
151.11 	the authority to be incomplete or inaccurate, the authority shall notify the applicant and 
151.12 	specify the missing or inaccurate information.
151.13 	(d) The executive director and the staff of the authority shall evaluate the applications 
151.14 	to determine if the application should be accepted or rejected by the authority.
151.15 	(e) The authority is not obligated to accept any application including those complete 
151.16 	and accurate and submitted by any specified deadline for submission if the authority 
151.17 	determines that it is not practicable to fund the loan for any reason including, but not 
151.18 	limited to, the creditworthiness of the applicant, the proposed loan amount, the term 
151.19 	and repayment schedule, the sources of funding available to the authority, and current 
151.20 	market conditions. Upon acceptance and approval of an application by the authority, the 
151.21 	authority may require that the applicant authorize, execute, and deliver a commitment to 
151.22 	the authority within such time period specified by the authority in its acceptance of the 
151.23 	application. The authority may reject an approved application for failure by the applicant 
151.24 	to authorize, execute, and deliver a commitment by the specified deadline.
151.25 		Subd. 7.Loan terms and conditions. (a) The terms and conditions of loans 
151.26 	provided by the authority pursuant to the credit enhanced bond program are as provided 
151.27 	by this section, any applicable bond resolution or series bond resolution of the authority, 
151.28 	any trust indenture pursuant to which any series of bonds of the authority are issued, 
151.29 	the regulatory agreement, the commitment and the general obligation bond, and the 
151.30 	authorizing resolution of the borrower.
151.31 	(b) The loan must be made by the authority through its purchase of the general 
151.32 	obligation bond of the borrower. The borrower shall provide the authority with the 
151.33 	opinion of nationally recognized bond counsel as to the valid authorization, issuance, and 
151.34 	enforceability of the general obligation bond of the borrower, and the exclusion of interest 
151.35 	thereon from gross income for the purposes of federal taxation, subject to customary 
151.36 	qualifications. The general obligation bond of the borrower may pledge other specified 
152.1 	sources of revenues for repayment to the extent permitted or required by law, in addition 
152.2 	to the full faith and credit and unlimited taxing powers of the borrower.
152.3 	(c) The authority may disburse the proceeds of the loan as a single payment for the 
152.4 	general obligation bond or from time to time pursuant to draw requests if the general 
152.5 	obligation bond of the borrower is structured as a periodic drawdown bond. In the event 
152.6 	the authority pays for the general obligation bond in a single payment, the borrower 
152.7 	shall establish a project account and disburse the proceeds of its general obligation bond 
152.8 	solely for costs of the project approved in its application pursuant to such additional 
152.9 	requirements specified in the regulatory agreement.
152.10 	(d) In order to facilitate the issuance of the authority's revenue bonds to finance 
152.11 	a pool of loans to different borrowers, the authority may require the borrower in the 
152.12 	commitment to issue its general obligation bond on a date certain in the future, and 
152.13 	may require the borrower to pay the costs incurred by the authority as a result of the 
152.14 	borrower's failure to deliver its general obligation bond as required by the commitment. 
152.15 	The commitment may also require the borrower to provide to the authority full disclosure 
152.16 	of all material facts and financial information relating to the borrower that would be 
152.17 	required if the borrower issued its general obligation bond to the public, certified as to 
152.18 	completeness and accuracy by authorized officers of the borrower, and authorization for 
152.19 	the authority to use such information in connection with the sale of the authority's revenue 
152.20 	bonds or disclosure relating to the authority's revenue bonds.
152.21 	(e) In addition to delivering its general obligation bond, each borrower shall enter 
152.22 	into a regulatory agreement with the authority providing additional terms of the loan 
152.23 	as the authority may specify, including providing to the authority periodic reports and 
152.24 	information relating to the acquisition or construction of the project and use of the 
152.25 	proceeds of the borrower's general obligation bond and periodic operating, financial, and 
152.26 	other information as to the creditworthiness of the borrower, and providing and filing 
152.27 	continuing secondary market disclosure to the extent required by the authority.
152.28 	(f) The purchase or commitment to purchase general obligation bonds of borrowers 
152.29 	by the authority shall be subject to the availability of proceeds of revenue bonds of the 
152.30 	authority for such purpose and the authority is not liable to any borrower for the failure to 
152.31 	purchase its general obligation bond pursuant to a commitment or any other agreement if 
152.32 	proceeds of the authority's revenue bonds are not available for any reason.
152.33 		Subd. 8.Interest rate determination. The rate of interest on the general obligation 
152.34 	bonds of the borrower must be the true interest cost on the revenue bonds of the authority 
152.35 	issued to purchase such general obligation bonds of the borrower plus the ongoing 
152.36 	percentage fee charged by the authority under subdivision 10; provided that the interest 
153.1 	rate must not exceed any limit imposed by federal tax law with respect to the authority's 
153.2 	revenue bonds.
153.3 		Subd. 9.Market considerations. The authority may suspend offering loans if it is 
153.4 	determined by the executive director that there are extreme or unusual events impacting 
153.5 	the bond market and that to continue making loans would be detrimental to holders of the 
153.6 	authority's revenue bonds or the financial viability of the credit enhanced bond program, 
153.7 	or if the state is warned by one of its rating agencies that continuing to make loans will 
153.8 	result in lowering the state's bond rating. If the making of loans is suspended under this 
153.9 	section, the authority shall have the option to resume making loans once it has determined 
153.10 	that the conditions for suspending the program no longer exist.
153.11 		Subd. 10.Fees. The authority shall charge a nonrefundable application fee of 
153.12 	$1,000 payable by each applicant upon submission of an application to the authority. A 
153.13 	separate application fee must be payable for each application submitted, including a 
153.14 	resubmitted application for an application that was rejected by the authority or determined 
153.15 	to be incomplete or inaccurate by the authority. The authority shall charge an ongoing 
153.16 	periodic fee of ten basis points of the outstanding principal amount of the loan to be added 
153.17 	to, and be a component of, the interest rate on the general obligation bonds of the borrower.
153.18 		Subd. 11.Authority revenue bonds. (a) The authority is authorized to issue 
153.19 	revenue bonds as provided in this chapter to fund the credit enhanced bond program. 
153.20 	The revenue bonds may be issued in one or more series pursuant to a resolution of the 
153.21 	authority or a series resolution or pursuant to a trust indenture with a financial institution 
153.22 	with trust powers as trustee, authorized by resolution of the authority. Any issue of bonds 
153.23 	may be used to fund one or more loans, may be payable by the loans funded from such 
153.24 	issue of bonds and such additional loans as pledged by the authority, and may be payable 
153.25 	on a subordinated basis to other bonds. As permitted by the terms of any revenue bonds 
153.26 	issued by the authority, the authority may sell the general obligations pledged to the 
153.27 	payment of the revenue bonds and any proceeds of the sale in excess of those used to pay 
153.28 	the principal of the revenue bonds must be deposited to the credit enhanced bond program 
153.29 	fund and may be used to purchase additional general obligation bonds of borrowers, to 
153.30 	provide credit enhancement for the authority's revenue bonds, or to pay any other expense 
153.31 	of the credit enhanced bond program.
153.32 	(b) The authority may issue short-term bonds in anticipation of issuing long-term 
153.33 	bonds for the purpose of acquiring general obligation bonds of borrowers.
153.34 	(c) Bonds issued by the authority for the credit enhanced bond program must not 
153.35 	be general obligations of the authority to the payment of which the general assets of the 
153.36 	authority are pledged or available for payment. All bonds issued for the credit enhanced 
154.1 	bond programs by the authority must be revenue bonds payable solely from the sources 
154.2 	specified in the bond.
154.3 		Subd. 12.Reports, disclosure, audits. (a) During the term of the loan the borrower 
154.4 	shall provide written reports to the authority. The content and timing of these reports must 
154.5 	be as specified in the regulatory agreement.
154.6 	(b) During the term of the loan the borrower shall disclose to the authority any 
154.7 	material information or events adversely affecting the creditworthiness of the borrower 
154.8 	as specified in the regulatory agreement. If required by the authority in a regulatory 
154.9 	agreement, the borrower shall enter into a continuing disclosure undertaking to provide 
154.10 	disclosure to the market.
154.11 	(c) During the term of the loan, the borrower shall provide to the authority on an 
154.12 	annual basis financial statements of the borrower audited by an independent accounting 
154.13 	firm, as further specified in the regulatory agreement.

154.14 	Sec. 30. Minnesota Statutes 2006, section 446A.12, subdivision 1, is amended to read:
154.15 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
154.16 	principal amount that the authority determines necessary to provide sufficient funds for 
154.17 	achieving its purposes, including the making of loans and purchase of securities, the 
154.18 	payment of interest on bonds of the authority, the establishment of reserves to secure 
154.19 	its bonds, the payment of fees to a third party providing credit enhancement, and the 
154.20 	payment of all other expenditures of the authority incident to and necessary or convenient 
154.21 	to carry out its corporate purposes and powers, but not including the making of grants. 
154.22 	Bonds of the authority may be issued as bonds or notes or in any other form authorized 
154.23 	by law. The principal amount of bonds issued and outstanding under this section at any 
154.24 	time may not exceed $1,500,000,000, excluding bonds for which refunding bonds or 
154.25 	crossover refunding bonds have been issued., and excluding any bonds issued for the 
154.26 	credit enhanced bond program or refunding or crossover refunding bonds issued under the 
154.27 	program. The principal amount of bonds issued and outstanding under section 446A.087, 
154.28 	may not exceed $500,000,000, excluding bonds for which refunding bonds or crossover 
154.29 	refunding bonds have been issued.

154.30 	Sec. 31. Minnesota Statutes 2006, section 462A.209, subdivision 7, is amended to read:
154.31 		Subd. 7.Assistance to prevent mortgage foreclosures. (a) Program assistance 
154.32 	and counseling to prevent mortgage foreclosures or cancellations of contract for deeds 
154.33 	includes general information, screening, assessment, referral services, case management, 
155.1 	advocacy, and financial assistance to borrowers who are delinquent on mortgage or 
155.2 	contract for deed payments.
155.3 	(b) Not more than one-half of funds awarded for foreclosure prevention and 
155.4 	assistance activities may be used for mortgage or financial counseling services.
155.5 	(c) Financial assistance consists of payments for delinquent mortgage or contract 
155.6 	for deed payments, future mortgage or contract for deed payments for a period of up to 
155.7 	six months, property taxes, assessments, utilities, insurance, home improvement repairs, 
155.8 	future rent payments for a period of up to six months, and relocation costs if necessary, or 
155.9 	other costs necessary to prevent foreclosure.
155.10 	(d) An individual or family may receive a maximum of $5,500 of financial assistance
155.11 	The maximum amount of financial assistance an individual or family may receive to 
155.12 	prevent a mortgage foreclosure or the cancellation of a contract for deed is 110 percent of 
155.13 	the greater of state or applicable metropolitan statistical area median monthly owner cost 
155.14 	of owner-occupied housing, as estimated by the United States Census Bureau using data 
155.15 	collected in the most recent American Community Survey, multiplied by six.
155.16 	(e) The agency may require the recipient of financial assistance to enter into an 
155.17 	agreement with the agency for repayment. The repayment agreement for mortgages or 
155.18 	contract for deed buyers must provide that in the event the property is sold, transferred, 
155.19 	or otherwise conveyed, or ceases to be the recipient's principal place of residence, the 
155.20 	recipient shall repay all or a portion of the financial assistance. The agency may take into 
155.21 	consideration financial hardship in determining repayment requirements. The repayment 
155.22 	agreement may be secured by a lien on the property for the benefit of the agency.

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

155.24 	Sec. 32. Minnesota Statutes 2006, section 462A.21, is amended by adding a 
155.25 	subdivision to read:
155.26 		Subd. 32.Nonprofit housing bonds account. It may establish a nonprofit housing 
155.27 	bond account as a separate account within the housing development fund. Proceeds of 
155.28 	nonprofit housing bonds and payments made by the state pursuant to section 462A.36 
155.29 	may be deposited in the account. The agency may transfer the proceeds of nonprofit 
155.30 	housing bonds to another account within the housing development fund that it determines 
155.31 	appropriate to accomplish the purposes for which the bonds are authorized under section 
155.32 	462A.36.

155.33 	Sec. 33. Minnesota Statutes 2006, section 462A.22, subdivision 1, is amended to read:
156.1 		Subdivision 1.Debt ceiling. The aggregate principal amount of bonds and notes 
156.2 	which are outstanding at any time, excluding the principal amount of any bonds and 
156.3 	notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
156.4 	$3,000,000,000 $5,000,000,000.

156.5 	Sec. 34. [462A.36] NONPROFIT HOUSING BONDS; AUTHORIZATION; 
156.6 	STANDING APPROPRIATION.
156.7 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
156.8 	the meanings given them in this subdivision:
156.9 	(1) "debt service" means the amount payable in any fiscal year of principal of, 
156.10 	premium, in any, and interest on nonprofit housing bonds and the fees, charges, and 
156.11 	expenses related to the bonds;
156.12 	(2) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended; 
156.13 	and
156.14 	(3) "nonprofit housing bonds" means bonds issued by the agency under chapter 
156.15 	462A that are "qualified 501(c)(3) bonds" within the meaning of section 145(a) of the 
156.16 	Internal Revenue Code or are not "private activity bonds" within the meaning of section 
156.17 	141(a) of the Internal Revenue Code, for the purpose of financing or refinancing affordable 
156.18 	housing authorized under chapter 462A.
156.19 		Subd. 2.Appropriation of debt service; payment to agency or trustee. (a) Up to 
156.20 	$2,400,000 annually is appropriated from the general fund for deposit in the nonprofit 
156.21 	housing bond account established in section 462A.21, subdivision 32, to pay the debt 
156.22 	service on nonprofit housing bonds. The appropriation of up to $2,400,000 per year may be 
156.23 	made for no more than 20 years, commencing with the fiscal year beginning July 1, 2009.
156.24 	(b) On July 1 of each year, but no earlier than July 1, 2009, and for so long as any 
156.25 	nonprofit housing bonds are outstanding, the state must transfer from the general fund 
156.26 	to the nonprofit housing bond account established under section 462A.21, subdivision 
156.27 	32, the amount of debt service payable in the fiscal year certified by the agency to the 
156.28 	commissioner of finance, not to exceed $2,400,000 annually.
156.29 	(c) The agency may pledge to the payment of the nonprofit housing bonds the 
156.30 	payments to be made by the state pursuant to this section.
156.31 		Subd. 3.No full faith and credit. The nonprofit housing bonds are not public debt 
156.32 	of the state, and the full faith and credit and taxing powers of the state are not pledged 
156.33 	to the payment of the nonprofit housing bonds or to any payment that the state agrees to 
156.34 	make under this section. The bonds must contain a conspicuous statement to such effect.
157.1 		Subd. 4.Authorization. The agency may issue up to $30,000,000 of nonprofit 
157.2 	housing bonds in one or more series to which the payments made pursuant to this section 
157.3 	may be pledged. The nonprofit housing bonds authorized in this subdivision may be issued 
157.4 	for the purpose of making loans, on terms and conditions the agency deems appropriate, 
157.5 	to finance the costs of the construction, acquisition, preservation, and rehabilitation of 
157.6 	permanent supportive housing for individuals and families who: (1) either have been 
157.7 	without a permanent residence for at least 12 months or at least four times in the last three 
157.8 	years; or (2) are at significant risk of lacking a permanent residence for 12 months or at 
157.9 	least four times in the last three years. An insubstantial portion of the bond proceeds 
157.10 	may be used for permanent supportive housing for individuals and families experiencing 
157.11 	homelessness who do not meet the criteria of the previous sentence. For purposes of this 
157.12 	subdivision, "permanent supportive housing" means housing that is not time-limited and 
157.13 	provides or coordinates with linkages to services necessary for residents to maintain 
157.14 	housing stability and maximize opportunities for education and employment.

157.15 	Sec. 35. Laws 1997, chapter 21, section 1, is amended to read:
157.16 	Section 1. NASHWAUK GAS UTILITY.
 157.17 	The city of Nashwauk may construct and own one gas distribution line connecting 
157.18 	an area recently acquired by the city, and not currently served by a natural gas utility, with 
157.19 	a natural gas pipeline serving the region. Solely for the purpose of operating this gas line, 
157.20 	and distributing gas to customers located in the recently acquired area, The city may 
157.21 	establish a municipal gas utility without the election required under Minnesota Statutes, 
157.22 	section 412.321, subdivision 2, for the purpose of constructing, owning, and operating this 
157.23 	and other gas pipelines, and distributing gas to customers located within the municipal 
157.24 	boundaries of Nashwauk and to customers located within neighboring municipalities.

157.25 	EFFECTIVE DATE. This section is effective the day after compliance by the city 
157.26 	of Nashwauk with Minnesota Statutes, section 645.021, subdivision 3.

157.27 	Sec. 36. Laws 1998, chapter 404, section 23, subdivision 6, as amended by Laws 2002, 
157.28 	chapter 220, article 10, section 35, is amended to read:

157.29	Subd. 6.St. Paul RiverCentre Arena
 				65,000,000 
	
157.30 	This appropriation is from the general fund 
157.31 	to the commissioner of finance for a loan to 
157.32 	the city of St. Paul to demolish the existing 
157.33 	St. Paul RiverCentre Arena and to design, 
158.1 	construct, furnish, and equip a new arena. 
158.2 	This appropriation is not available until the 
158.3 	lessee to whom the city has leased the arena 
158.4 	has agreed to make rental or other payments 
158.5 	to the city under the terms set forth in this 
158.6 	subdivision. The loan is repayable solely 
158.7 	from and secured by the payments made 
158.8 	to the city by the lessee. The loan is not a 
158.9 	public debt and the full faith, credit, and 
158.10 	taxing powers of the city are not pledged for 
158.11 	its repayment.
158.12 	(a) $48,000,000$13,250,000 of the loan 
158.13 	must be repaid to the commissioner, without 
158.14 	interest, within 20 ten years from the date 
158.15 	of substantial completion of the arena in 
158.16 	accordance with the following schedule:
158.17 	(1) no repayments are due in the first two 
158.18 	years from the date of substantial completion;
158.19 	(2) in each of the years three to five, the 
158.20 	lessee must pay $1,250,000;
158.21 	(3) in each of the years six to ten and seven, 
158.22 	the lessee must pay $1,500,000;
158.23 	(4) in each of the years 11 to 13, the lessee 
158.24 	must pay $2,000,000 year eight, the lessee 
158.25 	must pay $1,500,000, and an additional 
158.26 	$1,500,000 not later than June 30, 2009; and 
158.27 	(5) in year 14, the lessee must pay 
158.28 	$3,000,000; ten, the lessee must pay 
158.29 	$1,500,000, and an additional $2,000,000 not 
158.30 	later than June 30, 2011. 
158.31 	(6) in year 15, the lessee must pay 
158.32 	$4,000,000; and 
158.33 	(7) in each of the years 16 to 20, the lessee 
158.34 	must pay $4,750,000.
159.1 	After the above payments have been made, 
159.2 	no more of the loan need be repaid to the 
159.3 	commissioner by the city of St. Paul and the 
159.4 	balance due on the loan is forgiven.
159.5 	(b) The commissioner must deposit the 
159.6 	repayments in the state treasury and credit 
159.7 	them to the general fund.
159.8 	(c) The loan may not be made until the 
159.9 	commissioner has entered into an agreement 
159.10 	with the city of St. Paul identifying the rental 
159.11 	or other payments that will be made and 
159.12 	establishing the dates on and the amounts 
159.13 	in which the payments will be made to the 
159.14 	city and by the city to the commissioner. The 
159.15 	payments may include operating revenues 
159.16 	and additional payments to be made by the 
159.17 	lessee under agreements to be negotiated 
159.18 	between the commissioner, the city, and the 
159.19 	lessee. Those agreements may include, but 
159.20 	are not limited to, an agreement whereby the 
159.21 	lessee pledges to provide each year a letter 
159.22 	of credit sufficient to guarantee the payment 
159.23 	of the amount due for the next succeeding 
159.24 	year; an agreement whereby the lessee 
159.25 	agrees to maintain a net worth, certified each 
159.26 	year by a financial institution or accounting 
159.27 	firm satisfactory to the commissioner, that 
159.28 	is greater than the balance due under the 
159.29 	payment schedule in paragraph (a); and any 
159.30 	other agreements the commissioner may 
159.31 	deem necessary to ensure that the payments 
159.32 	are made as scheduled.
159.33 	(d) The agreements must provide that the 
159.34 	failure of the lessee to make a payment due 
159.35 	to the city under the agreement is an event 
160.1 	of default under the lease between the city 
160.2 	and the lessee and that the state is entitled to 
160.3 	enforce the remedies of the lessor under the 
160.4 	lease in the event of default. Those remedies 
160.5 	must include, but need not be limited to, the 
160.6 	obligation of the lessee to pay the balance due 
160.7 	for the remainder of the payment schedule 
160.8 	in the event the lessee ceases to operate a 
160.9 	National Hockey League team in the arena.
160.10 	(e) By January 1, 1999, the commissioner 
160.11 	shall report to the chair of the senate 
160.12 	committee on state government finance 
160.13 	and the chair of the house committee on 
160.14 	ways and means the terms of an agreement 
160.15 	between the lessee and the amateur sports 
160.16 	commission whereby the lessee agrees to 
160.17 	make the facilities of the arena available to 
160.18 	the commission on terms satisfactory to the 
160.19 	commission for amateur sports activities 
160.20 	consistent with the purposes of Minnesota 
160.21 	Statutes, chapter 240A, each year during the 
160.22 	time the loan is outstanding. The amateur 
160.23 	sports commission must negotiate in good 
160.24 	faith and may be required to pay no more 
160.25 	than actual out-of-pocket expenses for the 
160.26 	time it uses the arena. The agreement may 
160.27 	not become effective before February 1, 
160.28 	1999. During any calendar year after 1999 
160.29 	that an agreement under this paragraph is 
160.30 	not in effect and a payment is due under 
160.31 	the schedule, the lessee must pay to the 
160.32 	commissioner a penalty of $750,000 for that 
160.33 	year. If the amateur sports commission has 
160.34 	not negotiated in good faith, no penalty is 
160.35 	due.

161.1 	Sec. 37. Laws 1999, chapter 223, article 2, section 72, is amended to read:
161.2 	Sec. 72. UPPER RED LAKE BUSINESS LOAN PROGRAM.
 161.3 	The commissioner of trade and economic development must make loans to 
161.4 	businesses in the Upper Red Lake area that have been severely affected by the significant 
161.5 	decline of the walleye fishing resource in Upper Red Lake. The loans may only be 
161.6 	made to businesses that operated in 1998. A business must submit an application to the 
161.7 	commissioner on forms provided by the commissioner. The application must include a 
161.8 	business plan for continued operation, with the assistance of the loan, until the walleye 
161.9 	fishing resource recovers. The commissioner shall allocate available loan funds to a 
161.10 	business based on the commissioner's evaluation of the probable success of its business 
161.11 	plan. A loan shall be for a maximum amount of $75,000 and a duration of ten years from 
161.12 	the date of the loan and shall be interest free. Repayment of a loan in monthly payments 
161.13 	of 1/120 of the original principal amount must begin no later than one year after walleye 
161.14 	fishing on Upper Red Lake is allowed by the department of natural resources recovered 
161.15 	to a bag limit of six. Any principal balance remaining at the end of the ten-year period 
161.16 	shall be forgiven if the business continues in operation for the ten-year period. Loan 
161.17 	repayments shall be deposited in the general fund.

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

161.19 	Sec. 38. Laws 2006, chapter 258, section 21, subdivision 14, is amended to read:

161.20	Subd. 14. Itasca County - infrastructure
 				12,000,000 
	
161.21 	For a grant to Itasca County for public 
161.22 	infrastructure needed to support a steel 
161.23 	plant in Itasca County or an innovative 
161.24 	energy project in Itasca County under 
161.25 	Minnesota Statutes, section 216B.1694, that 
161.26 	uses clean energy technology as defined in 
161.27 	Minnesota Statutes, section 216B.1693, or 
161.28 	both and economic development projects 
161.29 	in the contiguous counties. Grant money 
161.30 	may be used by Itasca County to acquire 
161.31 	right-of-way and mitigate loss of wetlands 
161.32 	and runoff of storm water, to predesign, 
161.33 	design, construct, and equip roads and rail 
161.34 	lines, and, in cooperation with municipal
162.1 	public utilities Nashwauk Municipal Utility, 
162.2 	to predesign, design, construct, and equip 
162.3 	natural gas pipelines, electric infrastructure, 
162.4 	water supply systems, and wastewater 
162.5 	collection and treatment systems. 
162.6 	Up to $4,000,000 of this appropriation may 
162.7 	be spent before the full financing for either 
162.8 	project has been closed. 

162.9 	Sec. 39. Laws 2006, chapter 282, article 11, section 2, subdivision 6, is amended to 
162.10 	read:

162.11	Subd. 6. Itasca County infrastructure
 				11,500,000 
	
162.12 	For transfer to the Minnesota minerals 21st 
162.13 	century fund for a grant to Itasca County 
162.14 	to design, construct, and equip roads, rail 
162.15 	lines, and in cooperation with Nashwauk 
162.16 	Municipal Utility to predesign, design, 
162.17 	construct, and equip electric infrastructure, 
162.18 	natural gas pipelines, water supply systems, 
162.19 	or wastewater collection and treatment 
162.20 	systems for a steel plant in Itasca County. Of 
162.21 	this amount, up to $500,000 may be used for 
162.22 	other mineral related projects in the taconite 
162.23 	relief area. This is a onetime appropriation. 

162.24 	Sec. 40. Laws 2007, chapter 135, article 1, section 3, subdivision 2, is amended to read:

162.25
162.26	Subd. 2. Business and Community 
Development
 		40,667,000 
		8,639,000 

162.27	Appropriations by Fund
	
162.28	General
	39,967,000 
	7,939,000 
	
162.29	Remediation
	700,000 
	700,000 
	
162.30 	(a) (1) $250,000 the first year and $250,000 
162.31 	the second year are from the general fund 
162.32 	for a grant under Minnesota Statutes, 
162.33 	section 116J.421, to the Rural Policy and 
163.1 	Development Center at St. Peter, Minnesota. 
163.2 	The grant shall be used for research and 
163.3 	policy analysis on emerging economic and 
163.4 	social issues in rural Minnesota, to serve as 
163.5 	a policy resource center for rural Minnesota 
163.6 	communities, to encourage collaboration 
163.7 	across higher education institutions to 
163.8 	provide interdisciplinary team approaches 
163.9 	to research and problem-solving in rural 
163.10 	communities, and to administer overall 
163.11 	operations of the center. 
163.12 	(2) The grant shall be provided upon the 
163.13 	condition that each state-appropriated 
163.14 	dollar be matched with a nonstate dollar. 
163.15 	Acceptable matching funds are nonstate 
163.16 	contributions that the center has received and 
163.17 	have not been used to match previous state 
163.18 	grants. Any unencumbered balance in the 
163.19 	first year is available for the second year. 
163.20 	(b) $250,000 the first year and $250,000 
163.21 	the second year are from the general fund 
163.22 	for a grant to WomenVenture for women's 
163.23 	business development programs. 
163.24 	(c) $250,000 the first year is for a grant to 
163.25 	University Enterprise Laboratories (UEL) 
163.26 	for its direct and indirect expenses to support 
163.27 	efforts to encourage the growth of early-stage 
163.28 	and emerging bioscience companies. UEL 
163.29 	must provide a report by June 30 each year 
163.30 	to the commissioner on the expenditures 
163.31 	until the appropriation is expended. This is a 
163.32 	onetime appropriation and is available until 
163.33 	expended. 
163.34 	(d) $2,000,000 the first year is for grants 
163.35 	under Minnesota Statutes, section 116J.571, 
164.1 	for the redevelopment grant program. This is 
164.2 	a onetime appropriation. 
164.3 	(e) $100,000 the first year and $100,000 the 
164.4 	second year are to help small businesses 
164.5 	access federal funds through the federal 
164.6 	Small Business Innovation Research Program 
164.7 	and the federal Small Business Technology 
164.8 	Transfer Program. Department services 
164.9 	must include maintaining connections to 
164.10 	11 federal programs, assessment of specific 
164.11 	funding opportunities, review of funding 
164.12 	proposals, referral to specific consulting 
164.13 	services, and training workshops throughout 
164.14 	the state. Unless prohibited by federal law, 
164.15 	the department must implement fees for 
164.16 	services that help companies seek federal 
164.17 	Phase II Small Business Innovation Research 
164.18 	grants. The recommended fee schedule 
164.19 	must be reported to the chairs of the house 
164.20 	of representatives finance committee and 
164.21 	senate budget division with jurisdiction over 
164.22 	economic development by February 1, 2008. 
164.23 	(f) $100,000 the first year and $100,000 
164.24 	the second year are appropriated to the 
164.25 	Public Facilities Authority for the small 
164.26 	community wastewater treatment program 
164.27 	under Minnesota Statutes, chapter 446A. 
164.28 	(g) $255,000 the first year and $155,000 
164.29 	the second year are from the general fund 
164.30 	for a grant to the Metropolitan Economic 
164.31 	Development Association for continuing 
164.32 	minority business development programs in 
164.33 	the metropolitan area. 
164.34 	(h) $85,000 the first year and $85,000 the 
164.35 	second year are for grants to the Minnesota 
165.1 	Inventors Congress. Of this amount, $10,000 
165.2 	each year is for the Student Inventors 
165.3 	Congress. 
165.4 	(i) $151,000 the first year is for a onetime 
165.5 	grant to the city of Faribault to design, 
165.6 	construct, furnish, and equip renovations to 
165.7 	accommodate handicapped accessibility at 
165.8 	the Paradise Center for the Arts.
165.9 	(j) $750,000 the first year is to Minnesota 
165.10 	Technology, Inc. for the small business 
165.11 	growth acceleration program established 
165.12 	under Minnesota Statutes, section 116O.115. 
165.13 	This is a onetime appropriation. This 
165.14 	appropriation does not cancel, but is 
165.15 	available until June 30, 2011.
165.16 	(k) $300,000 the first year is for a onetime 
165.17 	grant to the city of Northome for the 
165.18 	construction of a new municipal building to 
165.19 	replace the structures damaged by fire on 
165.20 	July 22, 2006. This appropriation is available 
165.21 	when the commissioner determines that a 
165.22 	sufficient match is available from nonstate 
165.23 	sources to complete the project.
165.24 	(l) $300,000 the first year is for a grant to the 
165.25 	city of Worthington for an agricultural-based 
165.26 	bioscience training and testing center. Funds 
165.27 	appropriated under this section must be used 
165.28 	to provide a training and testing facility for 
165.29 	incubator firms developing new agricultural 
165.30 	processes and products. This is a onetime 
165.31 	appropriation and is available until expended. 
165.32 	(m) $1,750,000 the first year is for a onetime 
165.33 	grant to BioBusiness Alliance of Minnesota 
165.34 	for bioscience business development 
165.35 	programs to promote and position the state 
166.1 	as a global leader in bioscience business 
166.2 	activities. These funds may be used for: 
166.3 	(1) completion and periodic updating of 
166.4 	a statewide bioscience business industry 
166.5 	assessment of business technology 
166.6 	enterprises and Minnesota's competitive 
166.7 	position employing annual updates to federal 
166.8 	industry classification data; 
166.9 	(2) long-term strategic planning that includes 
166.10 	projections of market changes resulting 
166.11 	from developments in biotechnology and the 
166.12 	development of 20-year goals, strategies, and 
166.13 	identified objectives for renewable energy, 
166.14 	medical devices, biopharma, and biologics 
166.15 	business development in Minnesota; 
166.16 	(3) the design and construction of a 
166.17 	Minnesota focused bioscience business 
166.18 	model to test competing strategies and 
166.19 	scenarios, evaluate options, and forecast 
166.20 	outcomes; and 
166.21 	(4) creation of a bioscience business 
166.22 	resources network that includes development 
166.23 	of a statewide bioscience business economic 
166.24 	development framework to encourage 
166.25 	bioscience business development and 
166.26 	encourage spin-off activities, attract 
166.27 	bioscience business location or expansion in 
166.28 	Minnesota, and establish a local capability to 
166.29 	support strategic system level planning for 
166.30 	industry, government, and academia. 
166.31 	This appropriation is available until June 30, 
166.32 	2009. 
166.33 	(n) $125,000 the first year is to develop and 
166.34 	operate a bioscience business marketing 
166.35 	program to market Minnesota bioscience 
167.1 	businesses and business opportunities 
167.2 	to other states and other countries. The 
167.3 	bioscience business marketing program must 
167.4 	emphasize bioscience business location and 
167.5 	expansion opportunities in communities 
167.6 	outside of the seven-county metropolitan 
167.7 	area as defined in Minnesota Statutes, 
167.8 	section 473.121, subdivision 2, that have 
167.9 	established collaborative plans among two 
167.10 	or more municipal units for bioscience 
167.11 	business activities, and that are within 15 
167.12 	miles of a four-year, baccalaureate degree 
167.13 	granting institution or a two-year technical 
167.14 	or community college that offers bioscience 
167.15 	curricula. The commissioner must report 
167.16 	to the committees of the senate and house 
167.17 	of representatives having jurisdiction 
167.18 	over bioscience and technology issues by 
167.19 	February 1 of each year on the expenditures 
167.20 	of these funds and the promotional activities 
167.21 	undertaken to market the Minnesota 
167.22 	bioscience industry to persons outside of the 
167.23 	state. This is a onetime appropriation and is 
167.24 	available until expended. 
167.25 	(o) $325,000 is for a grant to the Walker 
167.26 	Area Community Center, Inc., to construct, 
167.27 	furnish, and equip the Walker Area 
167.28 	Community Center. This appropriation is 
167.29 	not available until the commissioner has 
167.30 	determined that an amount sufficient to 
167.31 	complete the project has been committed 
167.32 	from nonstate sources. This is a onetime 
167.33 	appropriation and is available until expended. 
167.34 	(p) $100,000 the first year is for a grant 
167.35 	to the Pine Island Economic Development 
167.36 	Authority for predesign to upgrade and 
168.1 	extend utilities to serve Elk Run Bioscience 
168.2 	Research Park and The Falls - Healthy 
168.3 	Living By Nature, an integrated medicine 
168.4 	facility. This is a onetime appropriation and 
168.5 	is available until expended. 
168.6 	(q) $350,000 the first year is for a grant 
168.7 	to Thomson Township for infrastructure 
168.8 	improvements for the industrial park. This 
168.9 	is a onetime appropriation and is available 
168.10 	until expended. 
168.11 	(r) $75,000 the first year is for a grant to 
168.12 	Le Sueur County for the cost of cleaning 
168.13 	up debris from lakes in Le Sueur County, 
168.14 	caused by the August 24, 2006, tornado in 
168.15 	southern Le Sueur County. This is a onetime 
168.16 	appropriation and is available until expended. 
168.17 	(s) $400,000 the first year is for a grant to 
168.18 	the city of Rogers to be used for relief from 
168.19 	damages caused by the September 16, 2006, 
168.20 	tornado. 
168.21 	(t) $75,000 the first year is for a grant to 
168.22 	the city of Warroad for new public facilities 
168.23 	to replace those damaged or destroyed 
168.24 	by the August 2006 tornado, including 
168.25 	approximately 28 new street lights and 
168.26 	underground electrical circuits and a new 
168.27 	fish cleaning house. This is a onetime 
168.28 	appropriation and is available until expended. 
168.29 	If an appropriation for this purpose is enacted 
168.30 	more than once in the 2007 session, the 
168.31 	appropriation is effective only once. 
168.32 	(u) $500,000 the first year is for a grant to 
168.33 	the Upper Sioux Community to improve the 
168.34 	current water system to ensure continuity 
168.35 	of service to the entire population of the 
169.1 	community and to meet the demands of the 
169.2 	community expansion over the next 20 years. 
169.3 	The is a onetime appropriation and is not 
169.4 	available until the Public Facilities Authority 
169.5 	has determined that at least $1,000,000 has 
169.6 	been committed from nonstate sources. This 
169.7 	appropriation is available until expended. * 
169.8 	(The preceding text beginning "(u) $500,000 
169.9 	the first year is for" was indicated as vetoed 
169.10 	by the governor.) 
169.11 	(v) $755,000 the first year is for the urban 
169.12 	challenge grant program under Minnesota 
169.13 	Statutes, section 116M.18. This is a onetime 
169.14 	appropriation. 
169.15 	(w) $1,100,000 is for a grant to the 
169.16 	Neighborhood Development Center for 
169.17 	assistance necessary to retain minority 
169.18 	business enterprises at the Global Market. 
169.19 	This is a onetime appropriation and is 
169.20 	available until expended. 
169.21 	(x) $350,000 the first year is for a onetime 
169.22 	grant to the city of Inver Grove Heights 
169.23 	to reduce debt on the Inver Grove Heights 
169.24 	Veterans Memorial Community Center. * 
169.25 	(The preceding text beginning "(x) $350,000 
169.26 	the first year is for" was indicated as vetoed 
169.27 	by the governor.) 
169.28 	(y) $14,900,000 the first year is for the 
169.29 	Minnesota minerals 21st century fund created 
169.30 	in Minnesota Statutes, section 116J.423, to 
169.31 	partially restore the money unallotted by the 
169.32 	commissioner of finance in 2003 pursuant 
169.33 	to Minnesota Statutes, section 16A.152. 
169.34 	This appropriation may be used as provided 
169.35 	in Minnesota Statutes, section 116J.423, 
170.1 	subdivision 2. This appropriation is available 
170.2 	until expended. 
170.3 	(z) $2,500,000 the first year is for a grant to 
170.4 	the city of St. Paul to be used to pay, redeem, 
170.5 	or refund debt service costs incurred for the 
170.6 	River Centre Campus. * (The preceding text 
170.7 	beginning "(z) $2,500,000 the first year is 
170.8 	for" was indicated as vetoed by the governor.) 
170.9 	(aa) $147,000 each year is appropriated from 
170.10 	the general fund to the commissioner of 
170.11 	employment and economic development for 
170.12 	grants of $49,000 to eligible organizations 
170.13 	each year and for the purposes of this 
170.14 	paragraph. Each state grant dollar must be 
170.15 	matched with $1 of nonstate funds. Any 
170.16 	balance in the first year does not cancel but 
170.17 	is available in the second year. The base for 
170.18 	these grants in fiscal years 2010 and 2011 
170.19 	is $189,000 each year, with each eligible 
170.20 	organization receiving a $63,000 grant each 
170.21 	year. 
170.22 	The commissioner of employment and 
170.23 	economic development must make grants to 
170.24 	organizations to assist in the development 
170.25 	of entrepreneurs and small businesses. 
170.26 	Three grants must be awarded to continue 
170.27 	or to develop a program. One grant must 
170.28 	be awarded to the Riverbend Center for 
170.29 	Entrepreneurial Facilitation in Blue Earth 
170.30 	County, and two to other organizations 
170.31 	serving Faribault and Martin Counties. Grant 
170.32 	recipients must report to the commissioner 
170.33 	by February 1 of each year that the 
170.34 	organization receives a grant with the 
170.35 	number of customers served; the number of 
171.1 	businesses started, stabilized, or expanded; 
171.2 	the number of jobs created and retained; and 
171.3 	business success rates. The commissioner 
171.4 	must report to the house of representatives 
171.5 	and senate committees with jurisdiction 
171.6 	over economic development finance on the 
171.7 	effectiveness of these programs for assisting 
171.8 	in the development of entrepreneurs and 
171.9 	small businesses. 
171.10 	(bb) $5,000,000 the first year is for grants 
171.11 	under Minnesota Statutes, section 116J.8731, 
171.12 	for the Minnesota investment fund program. 
171.13 	Of this amount, up to $3,000,000 may 
171.14 	be used for a legal reference office and 
171.15 	data center facility, provided that the total 
171.16 	capital investment in the facility is at least 
171.17 	$60,000,000. This grant is not subject to 
171.18 	grant limitations under Minnesota Statutes, 
171.19 	section 116J.8731, subdivision 5. This is 
171.20 	a onetime appropriation and is available in 
171.21 	either year of the biennium. 

171.22 	Sec. 41. 2009 DISTRIBUTIONS ONLY; TACONITE PRODUCTION TAX.
 171.23 	(a) For 2008 production, distribution in 2009 only, two cents per taxable ton of 
171.24 	the taconite production tax under Minnesota Statutes, chapter 298, must be paid to the 
171.25 	Hibbing Economic Development Authority to retire bonds and for economic development 
171.26 	purposes.
171.27 	(b) For 2008 production, distribution in 2009 only, 0.25 cents per taxable ton of the 
171.28 	taconite production tax under Minnesota Statutes, chapter 298, must be paid to the St. 
171.29 	Louis County School Board to study the potential for and impact of consolidation and 
171.30 	streamlining the operations of the St. Louis County School District No. 2142.

171.31 	Sec. 42. HARDSHIP PAYMENTS.
 171.32 		Subdivision 1.Payments; availability. Hardship payments are available to 
171.33 	an applicant if the applicant suffered economic hardship due to delays in receiving 
171.34 	unemployment benefits resulting from the new unemployment insurance application 
172.1 	and filing system implemented by the Department of Employment and Economic 
172.2 	Development on October 15, 2007.
172.3 		Subd. 2.Economic hardship. "Economic hardship" means financial losses to 
172.4 	an applicant resulting from: checks returned for insufficient funds; account overdraft 
172.5 	charges; installment credit penalties, interest, and other fees resulting from missed or 
172.6 	late payments; mortgage loan late fees, interest charges, or other penalties; charges for 
172.7 	force-placed automobile or homeowner's insurance; penalties for late payment of income 
172.8 	or property taxes; and any penalties or adverse consequences, including the suspension of 
172.9 	an applicant's driver's license due to nonpayment of child support.
172.10 		Subd. 3.Payment from administration account. Hardship payments are payable 
172.11 	from the unemployment insurance administration account under Minnesota Statutes, 
172.12 	section 268.196.
172.13 		Subd. 4.Eligibility conditions. An applicant is eligible to receive hardship 
172.14 	payments under this section if the applicant's unemployment benefit payments due and 
172.15 	payable after October 15, 2007, were delayed at least four weeks.
172.16 		Subd. 5.Amount of hardship payments. The amount of hardship payments 
172.17 	available to an applicant is equal to the amount of economic hardship experienced by an 
172.18 	applicant due to the delay in receiving unemployment benefits. An applicant must provide 
172.19 	documentation of the amount of financial hardship claimed using financial institution 
172.20 	records, consumer or business credit records, child support records, or other commonly 
172.21 	recognized methods of documenting financial transactions.
172.22 		Subd. 6.Notice. The commissioner must notify applicants of the availability of 
172.23 	hardship payments by posting a notice on the department's official Web site, by notifying 
172.24 	applicants by individual mailing where department records show the applicant may be 
172.25 	eligible under subdivision 4, and by any other appropriate announcement.

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

172.27 	Sec. 43. LUMBER COMPANY EXTRA BENEFITS.
 172.28 		Subdivision 1.Extra benefits; availability. Extra unemployment benefits are 
172.29 	available to an applicant who was laid off due to lack of work from the Ainsworth Lumber 
172.30 	Company plant in Cook, Minnesota.
172.31 		Subd. 2.Payment from fund; effect on employer. Extra unemployment benefits 
172.32 	are payable from the unemployment insurance trust fund. Extra unemployment benefits 
172.33 	paid will not be used in computing the experience rating of Ainsworth Lumber Company 
172.34 	under Minnesota Statutes, sections 268.047 and 268.051, subdivision 3.
173.1 		Subd. 3.Eligibility conditions. An applicant is eligible to receive extra 
173.2 	unemployment benefits under this section for any week through December 27, 2008, if:
173.3 	(1) the applicant established a benefit account under Minnesota Statutes, section 
173.4 	268.07, with a majority of the wage credits from Ainsworth Lumber Company, and 
173.5 	exhausted entitlement to those regular unemployment benefits after January 1, 2008;
173.6 	(2) the applicant meets the same eligibility requirements that are required for regular 
173.7 	unemployment benefits under Minnesota Statutes, section 268.069;
173.8 	(3) the applicant is not entitled to any other unemployment benefits and is not 
173.9 	entitled to receive unemployment benefits under any other state or federal law for that 
173.10 	week, including any other extended unemployment benefits; and
173.11 	(4) if an applicant qualifies for any type of unemployment benefits available under 
173.12 	Minnesota law, or under any federal law, or the law of another state, the applicant must 
173.13 	apply for and exhaust entitlement to those unemployment benefits.
173.14 		Subd. 4.Weekly amount of extra benefits. The weekly extra unemployment 
173.15 	benefits amount available to an applicant is the same as the applicant's weekly regular 
173.16 	unemployment benefit amount on the benefit account established in subdivision 3, clause 
173.17 	(1).
173.18 		Subd. 5.Maximum amount of extra unemployment benefits. The maximum 
173.19 	amount of extra unemployment benefits available is equal to 26 times the applicant's 
173.20 	weekly benefit amount.
173.21 		Subd. 6.Program expiration. This extra unemployment benefit program expires 
173.22 	on December 27, 2008. No extra unemployment benefits may be paid for any week after 
173.23 	the expiration of this program.
173.24 		Subd. 7.Notice. The commissioner must notify applicants of the availability 
173.25 	of extra unemployment benefits by posting a notice on the department's official Web 
173.26 	site, by notifying applicants by individual mailing where department records show the 
173.27 	applicant may qualify for these extra unemployment benefits, and by any other appropriate 
173.28 	announcement.

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

173.31 	ARTICLE 16
173.32 	TRANSPORTATION

173.33	Section 1. SUMMARY OF APPROPRIATIONS.
 	
173.34 	The amounts shown in this section summarize direct appropriations, by fund, made 
173.35 	in this article.

174.1			2008
		2009
		Total
	
174.2	General
	$
	(325,000)
	$
	(28,000)
	$
	(353,000)
	
174.3	Trunk Highway
		6,850,000
		-0-
		6,850,000
	
174.4	Total
	$
	6,525,000
	$
	(28,000)
	$
	6,497,000

174.5	Sec. 2. APPROPRIATIONS.
 	
174.6 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
174.7 	in parentheses, subtracted from the appropriations under Laws 2007, chapter 143, article 
174.8 	1; Laws 2007, First Special Session chapter 2, article 2, section 2; Laws 2008, chapter 152, 
174.9 	article 1; to the agencies and for the purposes specified in this article. The appropriations 
174.10 	are from the trunk highway fund or another named fund and are available for the fiscal 
174.11 	years indicated for each purpose. The figures "2008" and "2009" used in this article mean 
174.12 	that the addition to or subtraction from the appropriation listed under them is available 
174.13 	for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. Supplemental 
174.14 	appropriations and reductions to appropriations for the fiscal year ending June 30, 2008, 
174.15 	are effective the day following final enactment.

174.16				APPROPRIATIONS
	
174.17				Available for the Year
	
174.18				Ending June 30
	
174.19					2008
		2009

174.20	Sec. 3. TRANSPORTATION

174.21	Subdivision 1.Total Appropriation
 	$
	6,850,000
	$
	-0-

174.22	State Roads
					
174.23 	This is spending authority for additional 
174.24 	federal bridge funding authorized and 
174.25 	appropriated by Congress in 2008, and is for 
174.26 	the actual construction, reconstruction, and 
174.27 	improvement of trunk highways, including 
174.28 	design-build contracts and consultant usage 
174.29 	to support these activities. This includes the 
174.30 	cost of actual payments to landowners for 
174.31 	lands acquired for highway rights-of-way, 
174.32 	payments to lessees, interest subsidies, and 
174.33 	relocation expenses. This is a onetime 
174.34 	appropriation.

175.1	Subd. 2.Transfers In
 					
175.2 	Notwithstanding Minnesota Statutes, 
175.3 	section 222.49, before June 30, 2008, 
175.4 	the commissioner of finance shall transfer 
175.5 	$3,000,000 from the rail service improvement 
175.6 	account in the special revenue fund to the 
175.7 	general fund.
175.8 	Notwithstanding Minnesota Statutes, section 
175.9 	222.49, after July 1, 2008, and before June 
175.10 	30, 2009, the commissioner of finance shall 
175.11 	transfer $3,000,000 from the rail service 
175.12 	improvement account in the special revenue 
175.13 	fund to the general fund.

175.14	Sec. 4. PUBLIC SAFETY
 	$
	-0-
	$
	(28,000)

175.15	Administrative And Related Services
					
175.16 	This reduction is from the general fund 
175.17 	appropriation for a security coordinator 
175.18 	to coordinate planning efforts for the 
175.19 	Republican National Convention in Laws 
175.20 	2007, chapter 143, article 1, section 5, 
175.21 	subdivision 2, paragraph (b).

175.22	Sec. 5. UNIVERSITY OF MINNESOTA
 	$
	(325,000)
	$
	-0-
	
175.23 	This reduction eliminates the appropriation 
175.24 	in Laws 2008, chapter 152, article 1, section 
175.25 	6, subdivision 2, for a value-capture study.

175.26 	Sec. 6. Minnesota Statutes 2006, section 115A.908, subdivision 1, is amended to read:
175.27 		Subdivision 1.Fee charged. A fee of $10$20 shall be charged on the initial 
175.28 	registration and each subsequent transfer of title within the state, other than transfers for 
175.29 	resale purposes, of every motor vehicle weighing more than 1,000 pounds. The fee shall 
175.30 	be collected by the commissioner of public safety. Registration plates or certificates 
175.31 	of title may not be issued by the commissioner of public safety for the ownership or 
176.1 	operation of a motor vehicle subject to the transfer fee unless the fee is paid. The fee may 
176.2 	not be charged on the transfer of:
176.3 	(1) previously registered vehicles if the transfer is to the same person;
176.4 	(2) vehicles subject to the conditions specified in section 297A.70, subdivision 2; or
176.5 	(3) vehicles purchased in another state by a resident of another state if more than 60 
176.6 	days have elapsed after the date of purchase and the purchaser is transferring title to this 
176.7 	state and has become a resident of this state after the purchase.

176.8 	Sec. 7. Minnesota Statutes 2006, section 115A.908, subdivision 2, is amended to read:
176.9 		Subd. 2.Deposit of revenue. (a) From July 1, 2003, through June 30, 2007, revenue 
176.10 	collected shall be credited to the general fund.
176.11 	(b) After June 30, 2007From July 1, 2007, through June 30, 2008, revenue collected 
176.12 	shall be credited to the environmental fund.
176.13 	(c) After June 30, 2008, revenue collected from $10 of each fee must be credited 
176.14 	to the environmental fund. The remainder of the revenue collected from each fee must 
176.15 	be credited to the general fund.

176.16 	ARTICLE 17
176.17 	PUBLIC SAFETY

176.18	Section 1. SUMMARY OF APPROPRIATIONS.
 	
176.19 	The amounts shown in this section summarize the direct appropriations, by fund, 
176.20 	made in this article.

176.21			2008
		2009
		Total
	
176.22	General
	$
	360,000
	$
	(10,523,000)
	$
	(10,163,000)
	
176.23	Special Revenue
		-0-
		50,000
		50,000
	
176.24	Total
	$
	360,000
	$
	(10,473,000)
	$
	(10,113,000)

176.25	Sec. 2. APPROPRIATIONS.
 	
176.26 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
176.27 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 54, article 1, to 
176.28 	the agencies and for the purposes specified in this article. The appropriations are from the 
176.29 	general fund, or another named fund, and are available for the fiscal years indicated for 
176.30 	each purpose. The figures "2008" and "2009" used in this article mean that the addition to 
176.31 	or subtraction from the appropriations listed under them are available for the fiscal year 
176.32 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
176.33 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day 
177.1 	following final enactment. "The first year" is fiscal year 2008. "The second year" is fiscal 
177.2 	year 2009. "The biennium" is fiscal years 2008 and 2009.

177.3				APPROPRIATIONS
	
177.4				Available for the Year
	
177.5				Ending June 30
	
177.6					2008
		2009

177.7	Sec. 3. PUBLIC SAFETY

177.8	Subdivision 1.Total Appropriation
 	$
	360,000
	$
	(2,531,000)
	
177.9 	The appropriation reductions for each 
177.10 	purpose are shown in the following 
177.11 	subdivisions.

177.12	Subd. 2.Emergency Management
 		360,000
		(76,000)
	
177.13 	$360,000 in the first year is to provide a 
177.14 	match for FEMA money received for natural 
177.15 	disaster assistance payments and is added 
177.16 	to appropriations in Laws 2007, chapter 54, 
177.17 	article 1, section 10, subdivision 2. This 
177.18 	appropriation is available until June 30, 
177.19 	2010. This is a onetime appropriation.
177.20 	The appropriation from the general fund in 
177.21 	the second year to reimburse local chemical 
177.22 	assessment and hazardous materials teams 
177.23 	when they respond to incidents is reduced 
177.24 	by $40,000. Reimbursements up to $40,000 
177.25 	per year are to be made from revenues in 
177.26 	the special revenue fund from billings to 
177.27 	responsible companies.
177.28 	$36,000 is a reduction in the second year 
177.29 	from Laws 2007, chapter 54, article 1, 
177.30 	section 10, subdivision 2.

177.31	Subd. 3.Criminal Apprehension
 		-0-
		(1,659,000)
	
177.32 	$659,000 is from Laws 2007, chapter 54, 
177.33 	article 1, section 10, subdivision 3.
178.1 	$1,000,000 is from funding for CriMNet 
178.2 	justice information integration.

178.3	Subd. 4.Alcohol and Gambling Enforcement
 		-0-
		(24,000)
	
178.4 	This reduction is from Laws 2007, chapter 
178.5 	54, article 1, section 10, subdivision 5.

178.6	Subd. 5.Office of Justice Programs
 		-0-
		(622,000)
	
178.7 	This reduction is from Laws 2007, chapter 
178.8 	54, article 1, section 10, subdivision 6.

178.9	Subd. 6.General Reduction
 		-0-
		(150,000)
	
178.10 	The commissioner shall allocate the general 
178.11 	reduction among agency operations. This is 
178.12 	a onetime reduction.

178.13	Sec. 4. HUMAN RIGHTS
 	$
	-0-
	$
	(112,000)
	
178.14 	This reduction is from Laws 2007, chapter 
178.15 	54, article 1, section 13.

178.16	Sec. 5. DEPARTMENT OF CORRECTIONS

178.17	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(7,880,000)
	
178.18 	The appropriation additions or reductions 
178.19 	for each purpose are shown in the following 
178.20 	subdivisions.

178.21	Subd. 2.Correctional Institutions
 		-0-
		(4,281,000)
	
178.22 	This reduction is from Laws 2007, chapter 
178.23 	54, article 1, section 14, subdivision 2.

178.24	Subd. 3.Community Services
 		-0-
		(3,418,000)
	
178.25 	$1,568,000 is from Laws 2007, chapter 54, 
178.26 	article 1, section 14, subdivision 3.
178.27 	$1,250,000 is from Laws 2007, chapter 54, 
178.28 	article 1, section 14, subdivision 3, for the 
178.29 	care and housing of short-term offenders.
179.1 	$600,000 is from Laws 2007, chapter 54, 
179.2 	article 1, section 14, subdivision 3, for 
179.3 	sentencing-to-service activities.

179.4	Subd. 4.Operations Support
 		-0-
		(181,000)
	
179.5 	This reduction is from Laws 2007, chapter 
179.6 	54, article 1, section 14, subdivision 4.

179.7 	Sec. 6. Minnesota Statutes 2007 Supplement, section 297I.06, subdivision 3, is 
179.8 	amended to read:
179.9 		Subd. 3.Fire safety account, annual transfers, allocation. A special account, to 
179.10 	be known as the fire safety account, is created in the state treasury. The account consists 
179.11 	of the proceeds under subdivisions 1 and 2. $468,000 $1,468,000 in fiscal year 2008 
179.12 	and $2,268,000, $3,268,000 in fiscal year 2009, and $2,268,000 in each year thereafter is 
179.13 	transferred from the fire safety account in the special revenue fund to the general fund 
179.14 	to offset the loss of revenue caused by the repeal of the one-half of one percent tax on 
179.15 	fire insurance premiums. 

179.16 	Sec. 7. Laws 2007, chapter 54, article 1, section 11, is amended to read:

179.17
179.18	Sec. 11. PEACE OFFICER STANDARDS 
AND TRAINING (POST) BOARD
 	$ 
	4,296,000 
	$ 
	4,278,000
4,328,000
	
179.19 	Excess Amounts Transferred. This 
179.20 	appropriation is from the peace officer 
179.21 	training account in the special revenue fund. 
179.22 	Any new receipts credited to that account in 
179.23 	the first year in excess of $4,296,000 must be 
179.24 	transferred and credited to the general fund. 
179.25 	Any new receipts credited to that account 
179.26 	in the second year in excess of $4,278,000
179.27 	$4,328,000 must be transferred and credited 
179.28 	to the general fund. 
179.29 	Peace Officer Training Reimbursements.
179.30 	$3,159,000 the first year and $ 3,159,000 the 
179.31 	second year are for reimbursements to local 
179.32 	governments for peace officer training costs. 
180.1 	No Contact Orders. The board shall: (1) 
180.2 	revise and update preservice courses and 
180.3 	develop in-service training courses related 
180.4 	to no contact orders in domestic violence 
180.5 	cases and domestic violence dynamics; and 
180.6 	(2) reimburse peace officers who have taken 
180.7 	training courses described in clause (1). 
180.8 	At a minimum, the training must include 
180.9 	instruction in the laws relating to no contact 
180.10 	orders and address how to best coordinate 
180.11 	law enforcement resources relating to no 
180.12 	contact orders. In addition, the training 
180.13 	must include a component to instruct peace 
180.14 	officers on doing risk assessments of the 
180.15 	escalating factors of lethality in domestic 
180.16 	violence cases. The board must consult with 
180.17 	a statewide domestic violence organization 
180.18 	in developing training courses. The board 
180.19 	shall utilize a request for proposal process in 
180.20 	awarding training contracts. The recipient 
180.21 	of the training contract must conduct these 
180.22 	trainings with advocates or instructors from 
180.23 	a statewide domestic violence organization. 
180.24 	Beginning on January 1, 2008, the board may 
180.25 	not approve an in-service training course 
180.26 	relating to domestic abuse that does not 
180.27 	comply with this section.

180.28 	ARTICLE 18
180.29 	JUDICIARY

180.30	Section 1. SUMMARY OF APPROPRIATIONS.
 	
180.31 	The amounts shown in this section summarize the direct appropriations, by fund, 
180.32 	made in this article.

180.33			2008
		2009
		Total
	
180.34	General
	$
	-0-
	$
	(5,840,000)
	$
	(5,840,000)

181.1	Sec. 2. APPROPRIATIONS.
 	
181.2 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
181.3 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 54, article 1, to 
181.4 	the agencies and for the purposes specified in this article. The appropriations are from the 
181.5 	general fund, or another named fund, and are available for the fiscal years indicated for 
181.6 	each purpose. The figures "2008" and "2009" used in this article mean that the addition to 
181.7 	or subtraction from the appropriations listed under them are available for the fiscal year 
181.8 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
181.9 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day 
181.10 	following final enactment. "The first year" is fiscal year 2008. "The second year" is fiscal 
181.11 	year 2009. "The biennium" is fiscal years 2008 and 2009.

181.12				APPROPRIATIONS
	
181.13				Available for the Year
	
181.14				Ending June 30
	
181.15					2008
		2009

181.16	Sec. 3. SUPREME COURT
 	$
	-0-
	$
	(752,000)
	
181.17 	$100,000 in the second year is to reduce 
181.18 	funding for civil legal services. This is a 
181.19 	onetime reduction.
181.20 	$652,000 in the second year is to reduce 
181.21 	funding for Supreme Court operations.

181.22	Sec. 4. COURT OF APPEALS
 	$
	-0-
	$
	(213,000)

181.23	Sec. 5. DISTRICT COURTS
 	$
	-0-
	$
	(3,484,000)
	
181.24 	This reduction may be applied to any 
181.25 	appropriation contained in Laws 2007, 
181.26 	chapter 54, article 1, section 5.

181.27	Sec. 6. BOARD OF PUBLIC DEFENSE
 	$
	-0-
	$
	(1,391,000)

181.28 	Sec. 7. Minnesota Statutes 2006, section 357.021, subdivision 6, is amended to read:
181.29 		Subd. 6.Surcharges on criminal and traffic offenders. (a) Except as provided 
181.30 	in this paragraph, the court shall impose and the court administrator shall collect a $72
181.31 	$75 surcharge on every person convicted of any felony, gross misdemeanor, misdemeanor, 
182.1 	or petty misdemeanor offense, other than a violation of a law or ordinance relating to 
182.2 	vehicle parking, for which there shall be a $4 surcharge. In the Second Judicial District, 
182.3 	the court shall impose, and the court administrator shall collect, an additional $1 surcharge 
182.4 	on every person convicted of any felony, gross misdemeanor, misdemeanor, or petty 
182.5 	misdemeanor offense, including a violation of a law or ordinance relating to vehicle 
182.6 	parking, if the Ramsey County Board of Commissioners authorizes the $1 surcharge. The 
182.7 	surcharge shall be imposed whether or not the person is sentenced to imprisonment or the 
182.8 	sentence is stayed. The surcharge shall not be imposed when a person is convicted of a 
182.9 	petty misdemeanor for which no fine is imposed.
182.10 	(b) If the court fails to impose a surcharge as required by this subdivision, the court 
182.11 	administrator shall show the imposition of the surcharge, collect the surcharge, and 
182.12 	correct the record.
182.13 	(c) The court may not waive payment of the surcharge required under this 
182.14 	subdivision. Upon a showing of indigency or undue hardship upon the convicted person 
182.15 	or the convicted person's immediate family, the sentencing court may authorize payment 
182.16 	of the surcharge in installments.
182.17 	(d) The court administrator or other entity collecting a surcharge shall forward it 
182.18 	to the commissioner of finance.
182.19 	(e) If the convicted person is sentenced to imprisonment and has not paid the 
182.20 	surcharge before the term of imprisonment begins, the chief executive officer of the 
182.21 	correctional facility in which the convicted person is incarcerated shall collect the 
182.22 	surcharge from any earnings the inmate accrues from work performed in the facility 
182.23 	or while on conditional release. The chief executive officer shall forward the amount 
182.24 	collected to the commissioner of finance.

182.25 	Sec. 8. Minnesota Statutes 2006, section 357.021, subdivision 7, is amended to read:
182.26 		Subd. 7.Disbursement of surcharges by commissioner of finance. (a) Except 
182.27 	as provided in paragraphs (b), (c), and (d), the commissioner of finance shall disburse 
182.28 	surcharges received under subdivision 6 and section 97A.065, subdivision 2, as follows:
182.29 	(1) one percent shall be credited to the game and fish fund to provide peace officer 
182.30 	training for employees of the Department of Natural Resources who are licensed under 
182.31 	sections 626.84 to 626.863, and who possess peace officer authority for the purpose of 
182.32 	enforcing game and fish laws;
182.33 	(2) 39 percent shall be credited to the peace officers training account in the special 
182.34 	revenue fund; and
182.35 	(3) 60 percent shall be credited to the general fund.
183.1 	(b) The commissioner of finance shall credit $3 of each surcharge received under 
183.2 	subdivision 6 and section 97A.065, subdivision 2, to the general fund.
183.3 	(c) In addition to any amounts credited under paragraph (a), the commissioner of 
183.4 	finance shall credit $44$47 of each surcharge received under subdivision 6 and section 
183.5 	97A.065, subdivision 2, and the $4 parking surcharge, to the general fund.
183.6 	(d) If the Ramsey County Board of Commissioners authorizes imposition of 
183.7 	the additional $1 surcharge provided for in subdivision 6, paragraph (a), the court 
183.8 	administrator in the Second Judicial District shall transmit the surcharge to the 
183.9 	commissioner of finance. The $1 special surcharge is deposited in a Ramsey County 
183.10 	surcharge account in the special revenue fund and amounts in the account are appropriated 
183.11 	to the trial courts for the administration of the petty misdemeanor diversion program 
183.12 	operated by the Second Judicial District Ramsey County Violations Bureau.

183.13 	Sec. 9. [480.237] ELECTRONIC PAYMENTS; CONVENIENCE FEES; DATA 
183.14 	ACCESS.
183.15 	(a) The judicial branch may accept credit cards, charge cards, debit cards, or other 
183.16 	methods of electronic funds transfer for government fees and payments ordered by a court.
183.17 	(b) The judicial branch may impose a convenience fee to be added to each 
183.18 	transaction. The total amount of the convenience fee may not exceed the transaction fee 
183.19 	charged by a processing contractor for the credit services during the most recent collection 
183.20 	period. Each court imposing a convenience fee must notify the person using the credit 
183.21 	services of the fee before the transaction is processed. Fees collected under this section 
183.22 	are appropriated to the level of court that imposed the fee for the purposes of paying 
183.23 	the processing contractor.
183.24 	(c) Access to credit card, charge card, debit card, or other method of electronic funds 
183.25 	transfer account numbers collected, created, received, maintained, or disseminated by the 
183.26 	judicial branch in connection with a government services transaction are governed by the 
183.27 	rules of public access to records of the judicial branch promulgated by the Supreme Court.

183.28 	Sec. 10.  REPEALER.
 183.29 	Minnesota Statutes 2006, section 609.103, is repealed.

183.30 	ARTICLE 19
183.31 	STATE GOVERNMENT

183.32	Section 1.  SUMMARY OF APPROPRIATIONS.

184.1 	The amounts shown in this section summarize direct appropriations, by fund, made 
184.2 	in this article.

184.3			2008
		2009
		Total
	
184.4	General
	$
	-0-
	$
	(12,398,000)
	$
	(12,398,000)

184.5	Sec. 2. APPROPRIATIONS.
 	
184.6 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
184.7 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 148, article 1, to 
184.8 	the agencies and for the purposes specified in this article. The appropriations are from the 
184.9 	general fund or another named fund and are available for the fiscal years indicated for 
184.10 	each purpose. The figures "2008" and "2009" used in this article mean that the addition 
184.11 	to or subtraction from the appropriation listed under them is available for the fiscal year 
184.12 	ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and 
184.13 	reductions to appropriations for the fiscal year ending June 30, 2008, are effective the 
184.14 	day following final enactment.

184.15				APPROPRIATIONS
	
184.16				Available for the Year
	
184.17				Ending June 30
	
184.18					2008
		2009

184.19	Sec. 3. LEGISLATURE

184.20	Subdivision 1.Total Reduction
 	$
	-0-
	$
	(2,141,000)
	
184.21 	The appropriation additions or reductions 
184.22 	for each purpose are shown in the following 
184.23 	subdivisions.

184.24	Subd. 2.Senate
 		-0-
		(710,000)
	
184.25 	The base budget for the senate shall 
184.26 	be $22,724,000 in fiscal year 2010 and 
184.27 	$22,724,000 in fiscal year 2011.

184.28	Subd. 3.House of Representatives
 		-0-
		(953,000)
	
184.29 	The base budget for the house of 
184.30 	representatives shall be $30,551,000 in fiscal 
184.31 	year 2010 and $30,551,000 in fiscal year 
184.32 	2011.

184.33	Subd. 4.Legislative Coordinating Commission
 		-0-
		(478,000)
	
185.1 	The base budget for the Legislative 
185.2 	Coordinating Commission shall be 
185.3 	$15,416,000 in fiscal year 2010 and 
185.4 	$15,416,000 in fiscal year 2011.

185.5	Subd. 5.Cancellation
 					
185.6 	On July 1, 2008, the legislature shall cancel 
185.7 	to the general fund $175,000 of the balance 
185.8 	carried forward under Minnesota Statutes, 
185.9 	section 16A.281.

185.10	Sec. 4. GOVERNOR
 	$
	-0-
	$
	(138,000)

185.11	Sec. 5. STATE AUDITOR
 	$
	-0-
	$
	(42,000)

185.12	Sec. 6. ATTORNEY GENERAL
 	$
	-0-
	$
	(749,000)

185.13	Sec. 7. SECRETARY OF STATE
 	$
	-0-
	$
	(195,000)
	
185.14 	The base budget for the secretary of state 
185.15 	shall be $6,129,000 in fiscal year 2010 and 
185.16 	$6,301,000 in fiscal year 2011.

185.17
185.18	Sec. 8. OFFICE OF ENTERPRISE 
TECHNOLOGY

185.19	Subdivision 1.General Reduction
 	$
	-0-
	$
	(313,000)
	
185.20 	The base budget for the Office of Enterprise 
185.21 	Technology shall be $6,076,000 in fiscal year 
185.22 	2010 and $6,076,000 in fiscal year 2011.

185.23	Subd. 2.Transfer In
 					
185.24 	By June 30, 2009, the commissioner 
185.25 	of finance shall transfer $3,470,000 
185.26 	of the balance in the information and 
185.27 	telecommunications technology systems and 
185.28 	services account in the special revenue fund 
185.29 	to the general fund. 

185.30	Sec. 9. ADMINISTRATION

186.1	Subdivision 1.Total Reduction 
 	$
	-0-
	$
	(1,829,000)
	
186.2 	The appropriation additions or reductions 
186.3 	for each purpose are shown in the following 
186.4 	subdivisions.

186.5	Subd. 2.State Facilities Services
 		-0-
		(1,083,000)
	
186.6 	$885,000 of the reduction is from the 
186.7 	appropriation for Department of Public 
186.8 	Safety relocation expenses.

186.9	Subd. 3.Transfer In
 					
186.10 	By June 30, 2009, the commissioner 
186.11 	of finance shall transfer $1,500,000 of 
186.12 	the balance in the facilities repair and 
186.13 	replacement account in the special revenue 
186.14 	fund to the general fund. 

186.15	Subd. 4.State and Community Services
 		-0-
		(155,000)

186.16	Subd. 5.Administrative Management Services
 		-0-
		(591,000)
	
186.17 	$140,000 is from the appropriation for a 
186.18 	grant to the Council on Developmental 
186.19 	Disabilities for a statewide self-advocacy 
186.20 	network for persons with intellectual and 
186.21 	developmental disabilities.
186.22 	$335,000 is from the appropriation for the 
186.23 	Office of Strategic Planning and Results 
186.24 	Management.

186.25	Sec. 10. FINANCE

186.26	Subdivision 1.Total Reduction
 	$
	-0-
	$
	(1,024,000)
	
186.27 	The appropriation additions or reductions 
186.28 	for each purpose are shown in the following 
186.29 	subdivisions.

186.30	Subd. 2.State Financial Management
 		-0-
		(356,000)

186.31
186.32	Subd. 3.Information and Management 
Services
 		0
		(668,000)
	
187.1 	$400,000 is from the appropriation for the 
187.2 	Minnesota Accounting and Procurement 
187.3 	System (MAPS).
187.4 	After the Departments of Finance and 
187.5 	Employee Relations merge as directed in 
187.6 	Laws 2007, chapter 148, article 2, section 80, 
187.7 	the commissioner of finance may reallocate 
187.8 	fiscal year 2009 general fund appropriation 
187.9 	reductions among programs within the 
187.10 	merged agency. Any reallocation of funds 
187.11 	shall be shown in the program appropriations 
187.12 	base for fiscal years 2010 and 2011 according 
187.13 	to Minnesota Statutes, section 16A.11, 
187.14 	subdivision 3, paragraph (b).

187.15	Sec. 11. EMPLOYEE RELATIONS
 	$
	-0-
	$
	(218,000)
	
187.16 	The base budget for employee relations 
187.17 	shall be $5,241,000 in fiscal year 2010 and 
187.18 	$5,241,000 in fiscal year 2011 to reflect the 
187.19 	reduction and a transfer to the Department of 
187.20 	Health for the merger in Laws 2007, chapter 
187.21 	148, article 2, section 80.

187.22	Sec. 12. REVENUE
 	$
	-0-
	$
	3,120,000
	
187.23 	$360,000 is for the costs of administering 
187.24 	the data match program under Minnesota 
187.25 	Statutes, section 13B.07, including payments 
187.26 	to financial institutions in exchange for 
187.27 	performing data matches under that section.
187.28 	$4,000,000 is for additional activities to 
187.29 	identify and collect tax liabilities from 
187.30 	individuals and businesses that currently 
187.31 	do not pay all taxes owed. This initiative 
187.32 	is expected to result in new general fund 
187.33 	revenues of $16,000,000 for fiscal year 2009.
188.1 	$1,240,000 is a reduction from the 
188.2 	appropriation for the tax system management 
188.3 	program.

188.4 	Sec. 13. [13B.07] TAX DEBTOR DATA MATCHES.
188.5 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
188.6 	(a) "Account" means demand deposit account, checking account, negotiable order of 
188.7 	withdrawal account, savings account, time deposit account, money market mutual fund 
188.8 	account, or certificate of deposit account, and any funds or property held by a financial 
188.9 	institution, as defined in paragraph (e).
188.10 	(b) "Account information" means the type of account, the account number, whether 
188.11 	the account is singly or jointly owned, and, in the case of jointly owned accounts, the name 
188.12 	and address of the nondebtor account owner if available.
188.13 	(c) "Commissioner" means the commissioner of revenue.
188.14 	(d) "Debtor" means a person whose property is subject to a tax lien and a notice of 
188.15 	lien has been filed by the commissioner as provided by section 270C.63, subdivision 2.
188.16 	(e) "Financial institution" means any of the following that do business in this state:
188.17 	(1) federal or state commercial banks and federal or state savings banks, including 
188.18 	savings and loan associations and cooperative banks;
188.19 	(2) federal and state chartered credit unions;
188.20 	(3) benefit associations;
188.21 	(4) life insurance companies;
188.22 	(5) safe deposit companies;
188.23 	(6) money market mutual funds; or
188.24 	(7) a similar entity that holds property or maintains accounts reflecting property 
188.25 	belonging to others.
188.26 	(f) "Person" means a person as defined in section 270C.01, subdivision 6.
188.27 		Subd. 2.Data match system established. The commissioner shall establish a 
188.28 	process for the comparison of account information data held by financial institutions with 
188.29 	the Department of Revenue's database of debtors. The commissioner shall inform the 
188.30 	financial industry of the requirements of this section and the means by which financial 
188.31 	institutions can comply.
188.32 		Subd. 3.Duty to provide data. Within 30 days of a request by the commissioner, 
188.33 	a financial institution shall provide to the commissioner the name, address, and account 
188.34 	information for each debtor who maintains an account at the financial institution. The 
189.1 	commissioner may request the data concerning any debtor not more than four times a year 
189.2 	from a single financial institution.
189.3 		Subd. 4.Method to provide data. The commissioner must provide an electronic list 
189.4 	of debtors to the financial institution that includes debtors' name, address, and if the debtor 
189.5 	is an individual, the last four digits of the debtor's Social Security number. The financial 
189.6 	institution must compare that data to the data maintained at the financial institution to 
189.7 	identify which of the listed debtors maintains an account at the financial institution.
189.8 		Subd. 5.Means to provide data. A financial institution must provide the required 
189.9 	data in encrypted form by secure electronic means authorized by the commissioner.
189.10 		Subd. 6.Access to data. (a) With regard to data on debtors provided by the 
189.11 	commissioner to a financial institution under subdivision 4, the financial institution shall 
189.12 	retain the reported information only until the financial institution's database is compared 
189.13 	against the commissioner's database. Data that does not pertain to an account holder at 
189.14 	the financial institution must be immediately destroyed, and no retention or publication 
189.15 	of that data shall be made by the financial institution. None of the data provided by the 
189.16 	commissioner may be used for solicitation or other commercial purposes by the financial 
189.17 	institutions or other commercial entities.
189.18 	(b) All account information provided by a financial institution that pertains to a 
189.19 	debtor listed in the commissioner's database must be incorporated into the commissioner's 
189.20 	database. Access to that data is governed by chapters 13 and 270B. Notwithstanding 
189.21 	section 16D.06, data collected pursuant to this section is available for the collection of 
189.22 	delinquent taxes only and is not available for other debt collection activities undertaken by 
189.23 	the state.
189.24 		Subd. 7.Fees. A financial institution may charge and collect a fee from the 
189.25 	commissioner for providing account information to the commissioner. The commissioner 
189.26 	may pay a financial institution up to $150 each quarter. The commissioner shall develop 
189.27 	procedures for the financial institutions to charge and collect the fee. Payment of the fee 
189.28 	is limited by the amount of the appropriation for this purpose. If the appropriation is 
189.29 	insufficient, or if fund availability in the fourth quarter would allow payments for actual 
189.30 	costs in excess of $150, the commissioner shall prorate the available funds among the 
189.31 	financial institutions that have submitted a claim for the fee. No financial institution shall 
189.32 	charge or collect a fee that exceeds its actual costs of complying with this section.
189.33 		Subd. 8.Failure to respond to request for information. The commissioner shall 
189.34 	send a written notice of noncompliance to a financial institution that fails to respond to a 
189.35 	first written request for information under this section. The notice must be sent by certified 
189.36 	mail and must explain the requirements of this section and advise the financial institution 
190.1 	of the penalty for noncompliance. A financial institution that receives a second notice of 
190.2 	noncompliance is subject to a civil penalty of $1,000 for its failure to comply. A financial 
190.3 	institution that continues to fail to comply with this section is subject to a civil penalty of 
190.4 	$5,000 for the third and each subsequent failure to comply. These penalties are imposed 
190.5 	and collected under section 270C.33, subdivision 4, paragraph (a), clause (5).
190.6 		Subd. 9.Confidentiality. A financial institution furnishing a report to the 
190.7 	commissioner under this section is prohibited from disclosing to a debtor that the name of 
190.8 	the debtor has been received from or furnished to the commissioner.
190.9 		Subd. 10.Immunity. A financial institution that provides or reasonably attempts to 
190.10 	provide information to the commissioner in compliance with this section is not liable to 
190.11 	any person for disclosing the information or for taking any other action in good faith as 
190.12 	authorized by this section.
190.13 		Subd. 11.Civil action for unauthorized disclosure by financial institution. (a) 
190.14 	An account holder may bring a civil action in district court against a financial institution 
190.15 	for unauthorized disclosure of data received from the commissioner under subdivision 4. 
190.16 	A financial institution found to have violated this subdivision shall be liable as provided in 
190.17 	paragraph (b) or (c).
190.18 	(b) Any financial institution that willfully and maliciously discloses data received 
190.19 	from the commissioner under subdivision 4 is liable to that account holder in an amount 
190.20 	equal to the sum of:
190.21 	(1) any actual damages sustained by the account holder as a result of the disclosure; 
190.22 	and
190.23 	(2) in the case of any successful action to enforce any liability under this subdivision, 
190.24 	the costs of the action taken plus reasonable attorney fees as determined by the court.
190.25 	(c) Any financial institution that negligently discloses data received from the 
190.26 	commissioner under subdivision 4 is liable to that account holder in an amount equal to 
190.27 	any actual damages sustained by the account holder as a result of the disclosure.
190.28 	(d) A financial institution shall not be held liable in any action brought under this 
190.29 	subdivision if the financial institution shows, by a preponderance of evidence, that the 
190.30 	disclosure was not intentional and resulted from a bona fide error notwithstanding the 
190.31 	maintenance of procedures reasonably adopted to avoid any error.

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

190.33 	Sec. 14. Minnesota Statutes 2006, section 15.06, subdivision 8, is amended to read:
191.1 		Subd. 8.Number of deputy commissioners. Unless specifically authorized by 
191.2 	statute, other than section 43A.08, subdivision 2, No department or agency specified in 
191.3 	subdivision 1 shall have more than one deputy commissioner. 

191.4 	Sec. 15. Minnesota Statutes 2006, section 16B.03, is amended to read:
191.5 	16B.03 APPOINTMENTS.
191.6 	The commissioner is authorized to appoint staff, including two one  deputy 
191.7 	commissioners commissioner, in accordance with chapter 43A.

191.8 	Sec. 16. Minnesota Statutes 2006, section 43A.03, subdivision 3, is amended to read:
191.9 		Subd. 3.Organization. The department shall be organized into two bureaus which 
191.10 	shall be designated the Personnel Bureau and the Labor Relations Bureau. Each bureau 
191.11 	shall be responsible for administering the duties and functions assigned to it by law. 
191.12 	When the duties of the bureaus are not mandated by law, the commissioner may establish 
191.13 	and revise the assignments of either bureau. Each bureau shall be under the direction of 
191.14 	a deputy commissioner.

191.15 	Sec. 17. Minnesota Statutes 2006, section 43A.08, subdivision 1, is amended to read:
191.16 		 Subdivision 1.Unclassified positions.  Unclassified positions are held by employees 
191.17 	who are:
191.18 	 (1) chosen by election or appointed to fill an elective office;
191.19 	 (2) heads of agencies required by law to be appointed by the governor or other 
191.20 	elective officers, and the executive or administrative heads of departments, bureaus, 
191.21 	divisions, and institutions specifically established by law in the unclassified service;
191.22 	 (3) deputy and assistant agency heads and one confidential secretary in the agencies 
191.23 	listed in subdivision 1a and in the Office of Strategic and Long-Range Planning section 
191.24 	15.06, subdivision 1;
191.25 	 (4) the confidential secretary to each of the elective officers of this state and, for the 
191.26 	secretary of state and state auditor, an additional deputy, clerk, or employee;
191.27 	 (5) intermittent help employed by the commissioner of public safety to assist in 
191.28 	the issuance of vehicle licenses;
191.29 	 (6) employees in the offices of the governor and of the lieutenant governor and one 
191.30 	confidential employee for the governor in the Office of the Adjutant General;
191.31 	 (7) employees of the Washington, D.C., office of the state of Minnesota;
191.32 	 (8) employees of the legislature and of legislative committees or commissions; 
191.33 	provided that employees of the Legislative Audit Commission, except for the legislative 
192.1 	auditor, the deputy legislative auditors, and their confidential secretaries, shall be 
192.2 	employees in the classified service;
192.3 	 (9) presidents, vice-presidents, deans, other managers and professionals in 
192.4 	academic and academic support programs, administrative or service faculty, teachers, 
192.5 	research assistants, and student employees eligible under terms of the federal Economic 
192.6 	Opportunity Act work study program in the Perpich Center for Arts Education and the 
192.7 	Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance 
192.8 	employees, or any professional or managerial employee performing duties in connection 
192.9 	with the business administration of these institutions;
192.10 	 (10) officers and enlisted persons in the National Guard;
192.11 	 (11) attorneys, legal assistants, and three confidential employees appointed by the 
192.12 	attorney general or employed with the attorney general's authorization;
192.13 	 (12) judges and all employees of the judicial branch, referees, receivers, jurors, and 
192.14 	notaries public, except referees and adjusters employed by the Department of Labor 
192.15 	and Industry;
192.16 	 (13) members of the State Patrol; provided that selection and appointment of State 
192.17 	Patrol troopers must be made in accordance with applicable laws governing the classified 
192.18 	service;
192.19 	 (14) examination monitors and intermittent training instructors employed by the 
192.20 	Departments of Employee Relations and Commerce and by professional examining boards 
192.21 	and intermittent staff employed by the technical colleges for the administration of practical 
192.22 	skills tests and for the staging of instructional demonstrations;
192.23 	(15) student workers;
192.24 	(16) executive directors or executive secretaries appointed by and reporting to any 
192.25 	policy-making board or commission established by statute;
192.26 	(17) employees unclassified pursuant to other statutory authority;
192.27 	(18) intermittent help employed by the commissioner of agriculture to perform 
192.28 	duties relating to pesticides, fertilizer, and seed regulation;
192.29 	(19) the administrators and the deputy administrators at the State Academies for the 
192.30 	Deaf and the Blind; and
192.31 	(20) chief executive officers in the Department of Human Services.

192.32 	Sec. 18. [43A.187] BLOOD DONATION LEAVE.
192.33 	A state employee must be granted leave from work with 100 percent of pay to donate 
192.34 	blood at a location away from the place of work. The total amount of leave used under this 
192.35 	paragraph may not exceed three hours in a 12-month period, and must be determined by 
193.1 	the employee. A state employee seeking leave from work under this section must provide 
193.2 	14 days notice to the appointing authority. This leave must not affect the employee's 
193.3 	vacation leave, pension, compensatory time, personal vacation days, sick leave, earned 
193.4 	overtime accumulation, or cause a loss of seniority. For the purposes of this section, "state 
193.5 	employee" does not include an employee of the Minnesota State Colleges and Universities.

193.6 	Sec. 19. Minnesota Statutes 2006, section 45.013, is amended to read:
193.7 	45.013 POWER TO APPOINT STAFF.
193.8 	The commissioner of commerce may appoint four one deputy commissioners, four 
193.9 	assistant commissioners, and an assistant to the commissioner. Those positions, as well as 
193.10 	that of and a confidential secretary, are in the unclassified service. The commissioner may 
193.11 	appoint other employees necessary to carry out the duties and responsibilities entrusted to 
193.12 	the commissioner.

193.13 	Sec. 20. Minnesota Statutes 2006, section 84.01, subdivision 3, is amended to read:
193.14 		Subd. 3.Employees; delegation. Subject to the provisions of Laws 1969, chapter 
193.15 	1129, and to other applicable laws The commissioner shall organize the department and 
193.16 	employ up to three assistant commissioners, each of whom shall serve at the pleasure of 
193.17 	the commissioner in the unclassified service, one of whom shall have responsibility for 
193.18 	coordinating and directing the planning of every division within the agency, and such other
193.19 	officers, employees, and agents as the commissioner may deem necessary to discharge the 
193.20 	functions of the department, define the duties of such officers, employees, and agents and 
193.21 	to delegate to them any of the commissioner's powers, duties, and responsibilities subject 
193.22 	to the control of, and under the conditions prescribed by, the commissioner. Appointments 
193.23 	to exercise delegated power shall be by written order filed with the secretary of state.

193.24 	Sec. 21. Minnesota Statutes 2006, section 116.03, subdivision 1, is amended to read:
193.25 		Subdivision 1.Office. (a) The office of commissioner of the Pollution Control 
193.26 	Agency is created and is under the supervision and control of the commissioner, who is 
193.27 	appointed by the governor under the provisions of section 15.06. 
193.28 	(b) The commissioner may appoint a deputy commissioner and assistant 
193.29 	commissioners who shall be in the unclassified service.
193.30 	(c) The commissioner shall make all decisions on behalf of the agency that are not 
193.31 	required to be made by the agency under section 116.02. 

193.32 	Sec. 22. Minnesota Statutes 2006, section 116J.01, subdivision 5, is amended to read:
194.1 		Subd. 5.Departmental organization. (a) The commissioner shall organize the 
194.2 	department as provided in section 15.06. 
194.3 	(b) The commissioner may establish divisions and offices within the department. 
194.4 	The commissioner may employ four deputy commissioners in the unclassified service.
194.5 	(c) The commissioner shall:
194.6 	(1) employ assistants and other officers, employees, and agents that the commissioner 
194.7 	considers necessary to discharge the functions of the commissioner's office;
194.8 	(2) define the duties of the officers, employees, and agents, and delegate to them any 
194.9 	of the commissioner's powers, duties, and responsibilities, subject to the commissioner's 
194.10 	control and under conditions prescribed by the commissioner.
194.11 	(d) The commissioner shall ensure that there are at least three employment and 
194.12 	economic development officers in state offices in nonmetropolitan areas of the state who 
194.13 	will work with local units of government on developing local employment and economic 
194.14 	development.

194.15 	Sec. 23. Minnesota Statutes 2006, section 116J.035, subdivision 4, is amended to read:
194.16 		Subd. 4.Delegation of powers. The commissioner may delegate, in written orders 
194.17 	filed with the secretary of state, any powers or duties subject to the commissioner's 
194.18 	control to officers and employees in the department. Regardless of any other law, the 
194.19 	commissioner may delegate the execution of specific contracts or specific types of 
194.20 	contracts to the commissioner's deputies deputy, an assistant commissioner, or a program 
194.21 	director if the delegation has been approved by the commissioner of administration and 
194.22 	filed with the secretary of state.

194.23 	Sec. 24. Minnesota Statutes 2006, section 174.02, subdivision 2, is amended to read:
194.24 		Subd. 2.Unclassified positions. The commissioner shall appoint a deputy 
194.25 	commissioner/chief engineer. The deputy commissioner/chief engineer must be licensed 
194.26 	as a professional engineer under section 326.02. The commissioner may establish four
194.27 	three  positions in the unclassified service at the deputy and assistant commissioner, 
194.28 	assistant to commissioner, or personal secretary levels. No more than two of these 
194.29 	positions shall be at the deputy commissioner level.

194.30 	Sec. 25. [181.9458] AUTHORIZATION FOR BLOOD DONATION LEAVE.
194.31 	An employer may grant paid leave from work to an employee to allow the employee 
194.32 	to donate blood.

195.1 	Sec. 26. Minnesota Statutes 2006, section 241.01, subdivision 2, is amended to read:
195.2 		Subd. 2.Divisions; deputies Deputy. The commissioner of corrections may 
195.3 	appoint and employ no more than two a deputy commissioners commissioner. The 
195.4 	commissioner may also appoint a personal secretary, who shall serve at the commissioner's 
195.5 	pleasure in the unclassified civil service.

195.6 	Sec. 27. STATEWIDE ELECTRONIC LICENSING SYSTEM SURCHARGE.
 195.7 	From July 1, 2008, to June 30, 2011, a state agency shall impose a surcharge of $10 
195.8 	on each business or commercial license, and a surcharge of $5 on each professional or 
195.9 	occupational license, issued or renewed by the agency. Receipts from the surcharge must 
195.10 	be deposited in the state treasury. Until June 30, 2009, the receipts must be credited to the 
195.11 	general fund. After July 1, 2009, the receipts must be credited to a statewide electronic 
195.12 	licensing system account in the special revenue fund. Money in the statewide electronic 
195.13 	licensing system account is appropriated to the Office of Enterprise Technology to develop 
195.14 	and implement the statewide electronic licensing system.

195.15 	Sec. 28. APPROPRIATION REDUCTION.
 195.16 	The commissioner of finance shall determine the costs of salaries and economic 
195.17 	benefits attributable to the positions eliminated by this article and reduce the appropriation 
195.18 	to each affected agency accordingly.  The total reduction to general fund appropriations 
195.19 	must be at least $3,694,000 for the fiscal year ending June 30, 2009.

195.20 	Sec. 29. BUDGET RESERVE REDUCTION.
 195.21 	On July 1, 2008, the commissioner of finance shall cancel $100,000,000 of the 
195.22 	balance in the budget reserve account in Minnesota Statutes, section 16A.152, to the 
195.23 	general fund.

195.24 	Sec. 30. CASH FLOW ACCOUNT REDUCTION.
 195.25 	On July 1, 2008, the commissioner of finance shall cancel $350,000,000 of the 
195.26 	balance in the cash flow account in Minnesota Statutes, section 16A.152, to the general 
195.27 	fund.

195.28 	Sec. 31. PROFESSIONAL AND TECHNICAL CONTRACTS.
 195.29 	By July 1, 2008, the commissioner of finance shall allocate a reduction of $5,000,000 
195.30 	among the general fund appropriations for fiscal year 2009 to executive branch state 
195.31 	agencies, as defined in Minnesota Statutes, section 16A.011, subdivision 12a. To the 
196.1 	extent possible, this reduction must be achieved through reductions in expenditures for 
196.2 	professional and technical contracts, as defined in Minnesota Statutes, section 16C.08, 
196.3 	subdivision 1. Executive branch state agencies shall cooperate with the commissioner 
196.4 	of finance in developing and implementing the reductions. Any reductions that cannot 
196.5 	be achieved through savings in professional and technical contracts must be allocated 
196.6 	proportionally across executive branch state agency operating budgets. For purposes of 
196.7 	this subdivision, "executive branch state agency" does not include the Minnesota State 
196.8 	Colleges and Universities. By January 15, 2009, the commissioner of finance shall report 
196.9 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
196.10 	over finance regarding the amount of the reductions in professional and technical contract 
196.11 	spending by each agency.

196.12 	Sec. 32. NONESSENTIAL TRAVEL REDUCTION.
 196.13 	To the extent possible, reductions in agency operating budgets must be achieved 
196.14 	through savings resulting from the elimination of all nonessential travel during the period 
196.15 	ending June 30, 2009. "Nonessential" travel includes travel for purposes not directly 
196.16 	related to the agency's statutory obligations.

196.17 	Sec. 33.  REPEALER.
 196.18 	Minnesota Statutes 2006, section 240A.08, is repealed effective July 1, 2009.

196.19 	ARTICLE 20
196.20 	HEALTH CARE

196.21 	Section 1. Minnesota Statutes 2007 Supplement, section 144E.45, subdivision 2, is 
196.22 	amended to read:
196.23 		Subd. 2.Potential allocations. (a) On November 1, annually, the board or the 
196.24 	board's designee under section 144E.40, subdivision 2, shall determine the amount of the 
196.25 	allocation of the prior year's accumulation to each qualified ambulance service person. 
196.26 	The prior year's net investment gain or loss under paragraph (b) must be allocated 
196.27 	and that year's general fund appropriation, plus any transfer from the Cooper/Sams 
196.28 	volunteer ambulance account under section 144E.42, subdivision 2, and after deduction of 
196.29 	administrative expenses, also must be allocated. 
196.30 	(b) The difference in the market value of the assets of the Cooper/Sams volunteer 
196.31 	ambulance trust account as of the immediately previous June 30 and the June 30 occurring 
196.32 	12 months earlier must be reported on or before August 15 by the State Board of 
196.33 	Investment. The market value gain or loss must be expressed as a percentage of the total 
197.1 	potential award accumulations as of the immediately previous June 30, and that positive or 
197.2 	negative percentage must be applied to increase or decrease the recorded potential award 
197.3 	accumulation of each qualified ambulance service person.
197.4 	(c) The appropriation for this purpose, after deduction of administrative expenses, 
197.5 	must be divided by the total number of additional ambulance service personnel years 
197.6 	of service recognized since the last allocation or 1,000 years of service, whichever is 
197.7 	greater. If the allocation is based on the 1,000 years of service, any allocation not made 
197.8 	for a qualified ambulance service person must be credited to the Cooper/Sams volunteer 
197.9 	ambulance account under section 144E.42, subdivision 2. A qualified ambulance service 
197.10 	person must be credited with a year of service if the person is certified by the chief 
197.11 	administrative officer of the ambulance service as having rendered active ambulance 
197.12 	service during the 12 months ending as of the immediately previous June 30. If the person 
197.13 	has rendered prior active ambulance service, the person must be additionally credited with 
197.14 	one-fifth of a year of service for each year of active ambulance service rendered before 
197.15 	June 30, 1993, but not to exceed in any year one additional year of service or to exceed 
197.16 	in total five years of prior service. Prior active ambulance service means employment 
197.17 	by or the provision of service to a licensed ambulance service before June 30, 1993, as 
197.18 	determined by the person's current ambulance service based on records provided by the 
197.19 	person that were contemporaneous to the service. The prior ambulance service must be 
197.20 	reported on or before August 1 to the board in an affidavit from the chief administrative 
197.21 	officer of the ambulance service. 
197.22 	(d) Effective July 1, 2008, notwithstanding paragraphs (a) to (c), the value of each 
197.23 	service credit shall be $447.19.

197.24 	Sec. 2. Minnesota Statutes 2007 Supplement, section 245.4682, subdivision 3, is 
197.25 	amended to read:
197.26 		Subd. 3.Projects for coordination of care. (a) Consistent with section 256B.69
197.27 	and chapters 256D and 256L, the commissioner is authorized to solicit, approve, and 
197.28 	implement up to three projects to demonstrate the integration of physical and mental 
197.29 	health services within prepaid health plans and their coordination with social services. 
197.30 	The commissioner shall require that each project be based on locally defined partnerships 
197.31 	that include at least one health maintenance organization, community integrated service 
197.32 	network, or accountable provider network authorized and operating under chapter 62D, 
197.33 	62N, or 62T, or county-based purchasing entity under section 256B.692 that is eligible 
197.34 	to contract with the commissioner as a prepaid health plan, and the county or counties 
197.35 	within the service area.  In addition to the three projects, the commissioner may approve 
198.1 	and implement additional projects with one or more county-based purchasing plans 
198.2 	under section 256B.692 that are eligible to contract with the commissioner as a prepaid 
198.3 	health plan and that meet the commissioner's requirements for operating a project under 
198.4 	this subdivision. Counties shall retain responsibility and authority for social services in 
198.5 	these locally defined partnerships.
198.6 	(b) The commissioner, in consultation with consumers, families, and their 
198.7 	representatives, shall:
198.8 	(1) determine criteria for approving the projects and use those criteria to solicit 
198.9 	proposals for preferred integrated networks. The commissioner must develop criteria to 
198.10 	evaluate the partnership proposed by the county and prepaid health plan to coordinate 
198.11 	access and delivery of services. The proposal must at a minimum address how the 
198.12 	partnership will coordinate the provision of:
198.13 	(i) client outreach and identification of health and social service needs paired with 
198.14 	expedited access to appropriate resources;
198.15 	(ii) activities to maintain continuity of health care coverage;
198.16 	(iii) children's residential mental health treatment and treatment foster care;
198.17 	(iv) court-ordered assessments and treatments;
198.18 	(v) prepetition screening and commitments under chapter 253B;
198.19 	(vi) assessment and treatment of children identified through mental health screening 
198.20 	of child welfare and juvenile corrections cases;
198.21 	(vii) home and community-based waiver services;
198.22 	(viii) assistance with finding and maintaining employment;
198.23 	(ix) housing; and
198.24 	(x) transportation;
198.25 	(2) determine specifications for contracts with prepaid health plans to improve the 
198.26 	plan's ability to serve persons with mental health conditions, including specifications 
198.27 	addressing:
198.28 	(i) early identification and intervention of physical and behavioral health problems;
198.29 	(ii) communication between the enrollee and the health plan;
198.30 	(iii) facilitation of enrollment for persons who are also eligible for a Medicare 
198.31 	special needs plan offered by the health plan;
198.32 	(iv) risk screening procedures;
198.33 	(v) health care coordination;
198.34 	(vi) member services and access to applicable protections and appeal processes;
198.35 	(vii) specialty provider networks;
198.36 	(viii) transportation services;
199.1 	(ix) treatment planning; and
199.2 	(x) administrative simplification for providers;
199.3 	(3) begin implementation of the projects no earlier than January 1, 2009, with not 
199.4 	more than 40 percent of the statewide population  included during calendar year 2009 and 
199.5 	additional counties included in subsequent years;
199.6 	(4) waive any administrative rule not consistent with the implementation of the 
199.7 	projects;
199.8 	(5) allow potential bidders at least 90 days to respond to the request for proposals; 
199.9 	and
199.10 	(6) conduct an independent evaluation to determine if mental health outcomes have 
199.11 	improved in that county or counties according to measurable standards designed in 
199.12 	consultation with the advisory body established under this subdivision and reviewed by 
199.13 	the State Advisory Council on Mental Health.
199.14 	(c) Notwithstanding any statute or administrative rule to the contrary, the 
199.15 	commissioner may enroll all persons eligible for medical assistance with serious mental 
199.16 	illness or emotional disturbance in the prepaid plan of their choice within the project 
199.17 	service area unless:
199.18 	(1) the individual is eligible for home and community-based services for persons 
199.19 	with developmental disabilities and related conditions under section 256B.092; or
199.20 	(2) the individual has a basis for exclusion from the prepaid plan under section 
199.21 	256B.69, subdivision 4, other than disability, mental illness, or emotional disturbance.
199.22 	(d) The commissioner shall involve organizations representing persons with mental 
199.23 	illness and their families in the development and distribution of information used to 
199.24 	educate potential enrollees regarding their options for health care and mental health 
199.25 	service delivery under this subdivision.
199.26 	(e) If the person described in paragraph (c) does not elect to remain in fee-for-service 
199.27 	medical assistance, or declines to choose a plan, the commissioner may preferentially 
199.28 	assign that person to the prepaid plan participating in the preferred integrated network. 
199.29 	The commissioner shall implement the enrollment changes within a project's service area 
199.30 	on the timeline specified in that project's approved application.
199.31 	(f) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may 
199.32 	disenroll from the plan at any time.
199.33 	(g) The commissioner, in consultation with consumers, families, and their 
199.34 	representatives, shall evaluate the projects begun in 2009, and shall refine the design of the 
199.35 	service integration projects before expanding the projects. The commissioner shall report 
199.36 	to the chairs of the legislative committees with jurisdiction over mental health services 
200.1 	by March 1, 2008, on plans for evaluation of preferred integrated networks established 
200.2 	under this subdivision.
200.3 	(h) The commissioner shall apply for any federal waivers necessary to implement 
200.4 	these changes.
200.5 	(i) Payment for Medicaid service providers under this subdivision for the months of 
200.6 	May and June will be made no earlier than July 1 of the same calendar year.

200.7 	Sec. 3. Minnesota Statutes 2006, section 256.969, subdivision 2b, is amended to read:
200.8 		Subd. 2b.Operating payment rates. In determining operating payment rates for 
200.9 	admissions occurring on or after the rate year beginning January 1, 1991, and every two 
200.10 	years after, or more frequently as determined by the commissioner, the commissioner 
200.11 	shall obtain operating data from an updated base year and establish operating payment 
200.12 	rates per admission for each hospital based on the cost-finding methods and allowable 
200.13 	costs of the Medicare program in effect during the base year. Rates under the general 
200.14 	assistance medical care, medical assistance, and MinnesotaCare programs shall not be 
200.15 	rebased to more current data on January 1, 1997, and January 1, 2005, and for the first 
200.16 	year of the rebased period beginning January 1, 2009. The base year operating payment 
200.17 	rate per admission is standardized by the case mix index and adjusted by the hospital 
200.18 	cost index, relative values, and disproportionate population adjustment. The cost and 
200.19 	charge data used to establish operating rates shall only reflect inpatient services covered 
200.20 	by medical assistance and shall not include property cost information and costs recognized 
200.21 	in outlier payments.

200.22 	Sec. 4. Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to read:
200.23 		Subd. 8.Program established. (a) The commissioner, in cooperation with the 
200.24 	commissioner of commerce, shall establish the Minnesota partnership for long-term care 
200.25 	program to provide for the financing of long-term care through a combination of private 
200.26 	insurance and medical assistance.
200.27 	(b) An individual who meets the requirements in this paragraph is eligible to 
200.28 	participate in the partnership program. The individual must:
200.29 	(1) be a Minnesota resident at the time coverage first became effective under the 
200.30 	partnership policy; and
200.31 	(2) be a beneficiary of a partnership policy that (i) is issued on or after the effective 
200.32 	date of the state plan amendment implementing the partnership program in Minnesota, or 
200.33 	(ii) qualifies as a partnership policy under the provisions of subdivision 8a; and.
201.1 	(3) have exhausted all of the benefits under the partnership policy as described in this 
201.2 	section. Benefits received under a long-term care insurance policy before July 1, 2006, do 
201.3 	not count toward the exhaustion of benefits required in this subdivision.

201.4 	Sec. 5. Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to read:
201.5 		Subd. 9.Medical assistance eligibility. (a) Upon application for medical assistance 
201.6 	program payment of long-term care services by an individual who meets the requirements 
201.7 	described in subdivision 8, the commissioner shall determine the individual's eligibility 
201.8 	for medical assistance according to paragraphs (b) to (i).
201.9 	(b) After determining assets subject to the asset limit under section 256B.056, 
201.10 	subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow the 
201.11 	individual to designate assets to be protected from recovery under subdivisions 13 and 
201.12 	15 up to the dollar amount of the benefits utilized under the partnership policy as of the 
201.13 	effective date of eligibility for medical assistance program payment of long-term care 
201.14 	services. Benefits utilized under a long-term care insurance policy before July 1, 2006, 
201.15 	do not count for the purpose of determining the amount of assets that can be designated. 
201.16 	Designated assets shall be disregarded for purposes of determining eligibility for payment 
201.17 	of long-term care services. The dollar amount of benefits utilized must be equal to the 
201.18 	amount of claims paid by the issuer under the policy as verified by the issuer.
201.19 	(c) The individual shall identify the designated assets and the full fair market value 
201.20 	of those assets and designate them as assets to be protected at the time of initial application 
201.21 	for medical assistance payment of long-term care services. The full fair market value of 
201.22 	real property or interests in real property shall be based on the most recent full assessed 
201.23 	value for property tax purposes for the real property, unless the individual provides a 
201.24 	complete professional appraisal by a licensed appraiser to establish the full fair market 
201.25 	value. The extent of a life estate in real property shall be determined using the life estate 
201.26 	table in the health care program's manual. Ownership of any asset in joint tenancy shall be 
201.27 	treated as ownership as tenants in common for purposes of its designation as a disregarded 
201.28 	asset. The unprotected value of any protected asset is subject to estate recovery according 
201.29 	to subdivisions 13 and 15.
201.30 	(d) The right to designate assets to be protected is personal to the individual and 
201.31 	ends when the individual dies, except as otherwise provided in subdivisions 13 and 
201.32 	15. It does not include the increase in the value of the protected asset and the income, 
201.33 	dividends, or profits from the asset. It may be exercised by the individual or by anyone 
201.34 	with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, 
201.35 	transferred, or given away.
202.1 	(e) If the dollar amount of the benefits utilized under a partnership policy is greater 
202.2 	than the full fair market value of all assets protected at the time of the application for 
202.3 	medical assistance long-term care services, As the individual continues to utilize benefits 
202.4 	under a partnership policy after eligibility for medical assistance payment of long-term 
202.5 	care services begins, the individual may designate, for additional protection, an increase 
202.6 	in the value of protected assets and additional assets that become available during the 
202.7 	individual's lifetime for protection under this section up to the amount of additional 
202.8 	benefits utilized. The individual must make the designation in writing to the county agency 
202.9 	no later than the last date on which the individual must report a change in circumstances to 
202.10 	the county agency, as provided for under the medical assistance program. Any excess used 
202.11 	for this purpose shall not be available to the individual's estate to protect assets in the estate 
202.12 	from recovery under section 256B.15 or 524.3-1202, or otherwise. The amount used for 
202.13 	this purpose must reduce the unused amount of asset protection available to protect assets 
202.14 	in the individual's estate from recovery under section 256B.15 or 524.3-1202, or otherwise.
202.15 	(f) This section applies only to estate recovery under United States Code, title 42, 
202.16 	section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other 
202.17 	provisions of federal law, including, but not limited to, recovery from trusts under United 
202.18 	States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from 
202.19 	annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of 
202.20 	the Deficit Reduction Act of 2005, Public Law 109-171.
202.21 	(g) An individual's protected assets owned by the individual's spouse who applies 
202.22 	for payment of medical assistance long-term care services shall not be protected assets or 
202.23 	disregarded for purposes of eligibility of the individual's spouse solely because they were 
202.24 	protected assets of the individual.
202.25 	(h) Assets designated under this subdivision shall not be subject to penalty under 
202.26 	section 256B.0595.
202.27 	(i) The commissioner shall otherwise determine the individual's eligibility 
202.28 	for payment of long-term care services according to medical assistance eligibility 
202.29 	requirements.

202.30 	Sec. 6. Minnesota Statutes 2006, section 256B.0625, subdivision 3c, is amended to 
202.31 	read:
202.32 		Subd. 3c.Health Services Policy Committee. The commissioner, after receiving 
202.33 	recommendations from professional physician associations, professional associations 
202.34 	representing licensed nonphysician health care professionals, and consumer groups, shall 
202.35 	establish a 13-member Health Services Policy Committee, which consists of 12 voting 
203.1 	members and one nonvoting member. The Health Services Policy Committee shall advise 
203.2 	the commissioner regarding health services pertaining to the administration of health 
203.3 	care benefits covered under the medical assistance, general assistance medical care, and 
203.4 	MinnesotaCare programs. The Health Services Policy Committee shall meet at least 
203.5 	quarterly. The Health Services Policy Committee shall annually elect a physician chair 
203.6 	from among its members, who shall work directly with the commissioner's medical 
203.7 	director, to establish the agenda for each meeting. The Health Services Policy Committee 
203.8 	shall also recommend criteria for verifying centers of excellence for specific aspects of 
203.9 	medical care where a specific set of combined services, a volume of patients necessary to 
203.10 	maintain a high level of competency, or a specific level of technical capacity is associated 
203.11 	with improved health outcomes.

203.12 	Sec. 7. Minnesota Statutes 2006, section 256B.0625, subdivision 13e, is amended to 
203.13 	read:
203.14 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment 
203.15 	shall be the lower of the actual acquisition costs of the drugs plus a fixed dispensing fee; 
203.16 	the maximum allowable cost set by the federal government or by the commissioner plus 
203.17 	the fixed dispensing fee; or the usual and customary price charged to the public. The 
203.18 	amount of payment basis must be reduced to reflect all discount amounts applied to the 
203.19 	charge by any provider/insurer agreement or contract for submitted charges to medical 
203.20 	assistance programs. The net submitted charge may not be greater than the patient liability 
203.21 	for the service. The pharmacy dispensing fee shall be $3.65, except that the dispensing fee 
203.22 	for intravenous solutions which must be compounded by the pharmacist shall be $8 per 
203.23 	bag, $14 per bag for cancer chemotherapy products, and $30 per bag for total parenteral 
203.24 	nutritional products dispensed in one liter quantities, or $44 per bag for total parenteral 
203.25 	nutritional products dispensed in quantities greater than one liter. Actual acquisition cost 
203.26 	includes quantity and other special discounts except time and cash discounts. Effective 
203.27 	July 1, 2008, to June 30, 2009, the actual acquisition cost of a drug shall be estimated 
203.28 	by the commissioner, at average wholesale price minus 12 13 percent. Effective July 
203.29 	1, 2009, and thereafter, the actual acquisition cost of a drug must be estimated by the 
203.30 	commissioner, at average whole price minus 12.75 percent. The actual acquisition cost 
203.31 	of antihemophilic factor drugs shall be estimated at the average wholesale price minus 
203.32 	30 percent. The maximum allowable cost of a multisource drug may be set by the 
203.33 	commissioner and it shall be comparable to, but no higher than, the maximum amount 
203.34 	paid by other third-party payors in this state who have maximum allowable cost programs. 
204.1 	Establishment of the amount of payment for drugs shall not be subject to the requirements 
204.2 	of the Administrative Procedure Act.
204.3 	(b) An additional dispensing fee of $.30 may be added to the dispensing fee paid 
204.4 	to pharmacists for legend drug prescriptions dispensed to residents of long-term care 
204.5 	facilities when a unit dose blister card system, approved by the department, is used. Under 
204.6 	this type of dispensing system, the pharmacist must dispense a 30-day supply of drug. 
204.7 	The National Drug Code (NDC) from the drug container used to fill the blister card must 
204.8 	be identified on the claim to the department. The unit dose blister card containing the 
204.9 	drug must meet the packaging standards set forth in Minnesota Rules, part 6800.2700, 
204.10 	that govern the return of unused drugs to the pharmacy for reuse. The pharmacy provider 
204.11 	will be required to credit the department for the actual acquisition cost of all unused 
204.12 	drugs that are eligible for reuse. Over-the-counter medications must be dispensed in the 
204.13 	manufacturer's unopened package. The commissioner may permit the drug clozapine to be 
204.14 	dispensed in a quantity that is less than a 30-day supply.
204.15 	(c) Whenever a generically equivalent product is available, payment shall be on the 
204.16 	basis of the actual acquisition cost of the generic drug, or on the maximum allowable cost 
204.17 	established by the commissioner.
204.18 	(d) The basis for determining the amount of payment for drugs administered in an 
204.19 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
204.20 	provider or the amount established for Medicare by the United States Department of 
204.21 	Health and Human Services pursuant to title XVIII, section 1847a of the federal Social 
204.22 	Security Act.
204.23 	(e) The commissioner may negotiate lower reimbursement rates for specialty 
204.24 	pharmacy products than the rates specified in paragraph (a). The commissioner may 
204.25 	require individuals enrolled in the health care programs administered by the department 
204.26 	to obtain specialty pharmacy products from providers with whom the commissioner has 
204.27 	negotiated lower reimbursement rates. Specialty pharmacy products are defined as those 
204.28 	used by a small number of recipients or recipients with complex and chronic diseases 
204.29 	that require expensive and challenging drug regimens. Examples of these conditions 
204.30 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis 
204.31 	C, growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms 
204.32 	of cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
204.33 	biotechnology drugs, high-cost therapies, and therapies that require complex care. The 
204.34 	commissioner shall consult with the formulary committee to develop a list of specialty 
204.35 	pharmacy products subject to this paragraph. In consulting with the formulary committee 
204.36 	in developing this list, the commissioner shall take into consideration the population 
205.1 	served by specialty pharmacy products, the current delivery system and standard of care in 
205.2 	the state, and access to care issues. The commissioner shall have the discretion to adjust 
205.3 	the reimbursement rate to prevent access to care issues.

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

205.5 	Sec. 8. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 1, 
205.6 	is amended to read:
205.7 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
205.8 	assistance benefit plan shall include the following co-payments for all recipients, effective 
205.9 	for services provided on or after October 1, 2003, and before January 1, 2009:
205.10 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
205.11 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
205.12 	established illness, and which is delivered in an ambulatory setting by a physician or 
205.13 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
205.14 	audiologist, optician, or optometrist;
205.15 	(2) $3 for eyeglasses;
205.16 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
205.17 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
205.18 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
205.19 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
205.20 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
205.21 	include the following co-payments for all recipients, effective for services provided on 
205.22 	or after January 1, 2009:
205.23 	(1) $6 for nonemergency visits to a hospital-based emergency room; and
205.24 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
205.25 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
205.26 	shall apply to antipsychotic drugs when used for the treatment of mental illness.; and
205.27 	(3) for individuals with income at or below 100 percent of the federal poverty 
205.28 	guidelines, total monthly co-payments must not exceed five percent of family income. 
205.29 	For purposes of this paragraph, family income is the total earned and unearned income of 
205.30 	the individual and the individual's spouse, if the spouse is enrolled in medical assistance 
205.31 	and also subject to the five percent limit on co-payments.
205.32 	(c) Recipients of medical assistance are responsible for all co-payments in this 
205.33 	subdivision.

206.1 	Sec. 9. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 3, 
206.2 	is amended to read:
206.3 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider shall 
206.4 	be reduced by the amount of the co-payment, except that reimbursement for prescription 
206.5 	drugs reimbursements shall not be reduced:
206.6 	(1) once a recipient has reached the $12 per month maximum or the $7 per month 
206.7 	maximum effective January 1, 2009, for prescription drug co-payments; or
206.8 	(2) for a recipient under 100 percent of the federal poverty guidelines who has met 
206.9 	their monthly five percent co-payment limit.
206.10 	(b) The provider collects the co-payment from the recipient. Providers may not deny 
206.11 	services to recipients who are unable to pay the co-payment.
206.12 	(c) Medical assistance reimbursement to fee-for-service providers and payments to 
206.13 	managed care plans shall not be increased as a result of the removal of the co-payments 
206.14 	effective January 1, 2009.

206.15 	Sec. 10. Minnesota Statutes 2006, section 256B.69, subdivision 5a, is amended to read:
206.16 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
206.17 	and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year 
206.18 	basis beginning January 1, 1996. Managed care contracts which were in effect on June 
206.19 	30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 
206.20 	through December 31, 1995 at the same terms that were in effect on June 30, 1995. The 
206.21 	commissioner may issue separate contracts with requirements specific to services to 
206.22 	medical assistance recipients age 65 and older.
206.23 	(b) A prepaid health plan providing covered health services for eligible persons 
206.24 	pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms 
206.25 	of its contract with the commissioner. Requirements applicable to managed care programs 
206.26 	under chapters 256B, 256D, and 256L, established after the effective date of a contract 
206.27 	with the commissioner take effect when the contract is next issued or renewed.
206.28 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
206.29 	shall withhold five percent of managed care plan payments under this section for the 
206.30 	prepaid medical assistance and general assistance medical care programs pending 
206.31 	completion of performance targets. Each performance target must be quantifiable, 
206.32 	objective, measurable, and reasonably attainable, except in the case of a performance 
206.33 	target based on a federal or state law or rule. Criteria for assessment of each performance 
206.34 	target must be outlined in writing prior to the contract effective date. The withheld funds 
206.35 	must be returned no sooner than July of the following year if performance targets in the 
207.1 	contract are achieved. The commissioner may exclude special demonstration projects 
207.2 	under subdivision 23. A managed care plan or a county-based purchasing plan under 
207.3 	section 256B.692 may include as admitted assets under section 62D.044 any amount 
207.4 	withheld under this paragraph that is reasonably expected to be returned.
207.5 	(d)(1) Effective for services rendered on or after January 1, 2009, the commissioner 
207.6 	shall withhold an additional three percent of managed care plan payments under this 
207.7 	section for the prepaid medical assistance and general assistance medical care programs. 
207.8 	The withheld funds must be returned no sooner than July 1 and no later than July 31 of 
207.9 	the following year. The commissioner may exclude special demonstration projects under 
207.10 	subdivision 23.
207.11 	(2) A managed care plan or a county-based purchasing plan under section 256B.692 
207.12 	may include as admitted assets under section 62D.044 any amount withheld under this 
207.13 	paragraph that is reasonably expected to be returned.

207.14 	Sec. 11. Minnesota Statutes 2006, section 256B.75, is amended to read:
207.15 	256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.
207.16 	(a) For outpatient hospital facility fee payments for services rendered on or after 
207.17 	October 1, 1992, the commissioner of human services shall pay the lower of (1) submitted 
207.18 	charge, or (2) 32 percent above the rate in effect on June 30, 1992, except for those 
207.19 	services for which there is a federal maximum allowable payment. Effective for services 
207.20 	rendered on or after January 1, 2000, payment rates for nonsurgical outpatient hospital 
207.21 	facility fees and emergency room facility fees shall be increased by eight percent over the 
207.22 	rates in effect on December 31, 1999, except for those services for which there is a federal 
207.23 	maximum allowable payment. Services for which there is a federal maximum allowable 
207.24 	payment shall be paid at the lower of (1) submitted charge, or (2) the federal maximum 
207.25 	allowable payment. Total aggregate payment for outpatient hospital facility fee services 
207.26 	shall not exceed the Medicare upper limit. If it is determined that a provision of this 
207.27 	section conflicts with existing or future requirements of the United States government with 
207.28 	respect to federal financial participation in medical assistance, the federal requirements 
207.29 	prevail. The commissioner may, in the aggregate, prospectively reduce payment rates to 
207.30 	avoid reduced federal financial participation resulting from rates that are in excess of 
207.31 	the Medicare upper limitations.
207.32 	(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and 
207.33 	ambulatory surgery hospital facility fee services for critical access hospitals designated 
207.34 	under section 144.1483, clause (10), shall be paid on a cost-based payment system that is 
207.35 	based on the cost-finding methods and allowable costs of the Medicare program.
208.1 	(c) Effective for services provided on or after July 1, 2003, rates that are based 
208.2 	on the Medicare outpatient prospective payment system shall be replaced by a budget 
208.3 	neutral prospective payment system that is derived using medical assistance data. The 
208.4 	commissioner shall provide a proposal to the 2003 legislature to define and implement 
208.5 	this provision.
208.6 	(d) For fee-for-service services provided on or after July 1, 2002, the total payment, 
208.7 	before third-party liability and spenddown, made to hospitals for outpatient hospital 
208.8 	facility services is reduced by .5 percent from the current statutory rate.
208.9 	(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service 
208.10 	services provided on or after July 1, 2003, made to hospitals for outpatient hospital 
208.11 	facility services before third-party liability and spenddown, is reduced five percent from 
208.12 	the current statutory rates. Facilities defined under section 256.969, subdivision 16, are 
208.13 	excluded from this paragraph.
208.14 	(f) In addition to the reductions in paragraphs (d) and (e), the total payment for 
208.15 	fee-for-service services provided on or after July 1, 2008, made to hospitals for outpatient 
208.16 	hospital facility services before third-party liability and spenddown, is reduced three 
208.17 	percent from the current statutory rates. Mental health services and facilities defined under 
208.18 	section 256.969, subdivision 16, are excluded from this paragraph.

208.19 	Sec. 12. PRIOR AUTHORIZATION OF UNNECESSARY AND INEFFECTIVE 
208.20 	HEALTH CARE SERVICES.
 208.21 	(a) The commissioner of human services shall review the prioritized list of services 
208.22 	from the Oregon Health Plan dated January 1, 2008, and the services that have been 
208.23 	assessed by the state of Washington's Health Technology Assessment Program.
208.24 	(b) Based on this review, the commissioner shall identify at least 20 services 
208.25 	that do not currently require prior authorization but provide little or no benefit to the 
208.26 	enrollee. Effective for these identified services rendered on or after July 1, 2008, the 
208.27 	commissioner shall require prior authorization before reimbursement is provided under 
208.28 	medical assistance, general assistance medical care, or the MinnesotaCare program.
208.29 	(c) By July 1, 2008, the commissioner shall submit a list of these services identified 
208.30 	under this section to the senate and house policy and finance chairs that have jurisdiction 
208.31 	over human services.

208.32 	Sec. 13. EXCESS SURPLUS AND ADMINISTRATIVE COSTS.
 208.33 	(a) The commissioner of human services, in consultation with the commissioner of 
208.34 	health, shall determine the amount of excess surplus each health maintenance organization 
209.1 	and county-based purchasing plan had as of December 31, 2007. A health maintenance 
209.2 	organization and a county-based purchasing plan shall be determined to have excess 
209.3 	surplus if, as of December 31, 2007, its total adjusted capital met both of the following 
209.4 	conditions:
209.5 	(1) total adjusted capital was greater than the product of 5.5 and the authorized 
209.6 	control level risk-based capital; and
209.7 	(2) total adjusted capital was greater than the sum of the action level risk-based 
209.8 	capital and $100,000,000.
209.9 	(b) Effective for payments made on or after January 1, 2009, the commissioner 
209.10 	of human services shall reduce the capitation rate paid to each health maintenance 
209.11 	organization for administrative costs under Minnesota Statutes, section 256B.69, and 
209.12 	the capitation rate paid to each county-based purchasing plan for administrative costs 
209.13 	under Minnesota Statutes, section 256B.692, by an amount that equals 50 percent of the 
209.14 	difference between the total adjusted capital as of December 31, 2007, and the product of 
209.15 	5.5 and the authorized control level of risk-based capital as of December 31, 2007.

209.16 	ARTICLE 21
209.17 	MINNESOTA SEX OFFENDER PROGRAM (MSOP)

209.18 	Section 1. [246B.06] ESTABLISHMENT OF MINNESOTA STATE INDUSTRIES.
209.19 		Subdivision 1.Establishment; purpose. (a) The commissioner of human 
209.20 	services may establish, equip, maintain, and operate the Minnesota State Industries at 
209.21 	any Minnesota sex offender program facility under this chapter. The commissioner 
209.22 	may establish industrial and commercial activities for sex offender treatment patients 
209.23 	as the commissioner deems necessary and suitable to the profitable employment, 
209.24 	educational training, and development of proper work habits of patients consistent with 
209.25 	the requirements in section 246B.05. The industrial and commercial activities authorized 
209.26 	by this section are designated Minnesota State Industries and must be for the primary 
209.27 	purpose of sustaining and ensuring Minnesota State Industries' self-sufficiency, providing 
209.28 	educational training, meaningful employment, and the teaching of proper work habits to 
209.29 	the patients of the Minnesota sex offender program under this chapter, and not solely as 
209.30 	competitive business ventures. 
209.31 	(b) The net profits from Minnesota State Industries must be used for the benefit 
209.32 	of the patients as it relates to building education and self-sufficiency skills. Prior to 
209.33 	the establishment of any industrial and commercial activity, the commissioner of 
209.34 	human services may consult with stakeholders including representatives of business, 
209.35 	industry, organized labor, the commissioner of education, the state Apprenticeship 
210.1 	Council, the commissioner of labor and industry, the commissioner of employment and 
210.2 	economic development, the commissioner of administration, and other stakeholders the 
210.3 	commissioner deems qualified. The purpose of the stakeholder consultation is to determine 
210.4 	the quantity and nature of the goods, wares, merchandise, and services to be made or 
210.5 	provided, and the types of processes to be used in their manufacture, processing, repair, 
210.6 	and production consistent with the greatest opportunity for the reform and educational 
210.7 	training of the patients, and with the best interests of the state, business, industry, and labor.
210.8 	(c) The commissioner of human services shall, at all times in the conduct of any 
210.9 	industrial or commercial activity authorized by this section, utilize patient labor to the 
210.10 	greatest extent feasible, provided that the commissioner may employ all administrative, 
210.11 	supervisory, and other skilled workers necessary to the proper instruction of the patients 
210.12 	and the profitable and efficient operation of the industrial and commercial activities 
210.13 	authorized by this section.
210.14 	(d) The commissioner of human services may authorize the director of any 
210.15 	Minnesota sex offender treatment facility under the commissioner's control to accept 
210.16 	work projects from outside sources for processing, fabrication, or repair, provided that 
210.17 	preference is given to the performance of work projects for state departments and agencies.
210.18 		Subd. 2.Revolving fund. As described in section 246B.05, subdivision 2, there 
210.19 	is established a Minnesota State Industries revolving fund under the control of the 
210.20 	commissioner of human services. The revolving fund must be used for Minnesota State 
210.21 	Industries authorized under this section, including, but not limited to, the purchase of 
210.22 	equipment and raw materials, the payment of salaries and wages, and other necessary 
210.23 	expenses as determined by the commissioner of human services. The purchase of 
210.24 	services, materials, and commodities used in and held for resale are not subject to the 
210.25 	competitive bidding procedures of section 16C.06, but are subject to all other provisions 
210.26 	of chapters 16B and 16C. When practical, purchases must be made from small targeted 
210.27 	group businesses designated under section 16C.16. Additionally, the expenses of patient 
210.28 	educational training and self-sufficiency skills may be financed from the revolving fund 
210.29 	in an amount to be determined by the commissioner or designee. The proceeds and 
210.30 	income from all Minnesota State Industries conducted at the Minnesota sex offender 
210.31 	treatment facilities must be deposited in the revolving  fund subject to disbursement under 
210.32 	subdivision 3. The commissioner of human services may request that money in the fund 
210.33 	be invested pursuant to section 11A.25. Proceeds from the investment not currently 
210.34 	needed must be accounted for separately and credited to the revolving fund. 
210.35 		Subd. 3.Disbursement from fund. The Minnesota State Industries revolving 
210.36 	fund must be deposited in the state treasury and paid out only on proper vouchers as 
211.1 	authorized and approved by the commissioner of human services, and in the same manner 
211.2 	and under the same restrictions as are now provided by law for the disbursement of funds 
211.3 	by the commissioner. An amount deposited in the state treasury equal to six months 
211.4 	of net operating cash as determined by the prior 12 months of revenue and cash flow 
211.5 	statements must be restricted for use only by Minnesota State Industries as described 
211.6 	under subdivision 2. For purposes of this subdivision, "net operating cash" means net 
211.7 	income, minus sales, plus cost of goods sold. Cost of goods sold  include all direct costs 
211.8 	of industry products attributable to the goods' production.
211.9 		Subd. 4.Revolving fund; borrowing.  The commissioner of human services is 
211.10 	authorized to borrow sums of money as the commissioner deems necessary to meet 
211.11 	current demands on the Minnesota State Industries revolving fund. The sums borrowed 
211.12 	must not exceed, in any calendar year, six months of net operating cash as determined 
211.13 	by the previous 12 months of the industries' revenue and cash flow statements. If the 
211.14 	commissioner of human services determines that borrowing of funds is necessary, the 
211.15 	commissioner of human services shall certify this need to the commissioner of finance. 
211.16 	Funds may be borrowed from general fund appropriations to the Minnesota sex offender 
211.17 	program with the authorization of the commissioner of finance. Upon authorization of the 
211.18 	commissioner of finance, the transfer must be made and credited to the Minnesota State 
211.19 	Industries revolving fund. The sum transferred to the Minnesota State Industries revolving 
211.20 	fund must be repaid by the commissioner of human services from the revolving fund to 
211.21 	the fund from which it was transferred in a time period specified by the commissioner 
211.22 	of finance, but by no later than the end of the biennium, as defined in section 16A.011, 
211.23 	in which the loan is made. When any transfer is made to the Minnesota State Industries 
211.24 	revolving fund, the commissioner of finance shall notify the commissioner of human 
211.25 	services of the amount transferred to the fund and the date the transfer is to be repaid.
211.26 		Subd. 5.Federal grant fund transfers. Grants received by the commissioner of 
211.27 	human services from the federal government for any vocational training program or for 
211.28 	administration by the commissioner of human services must (1) be credited to a federal 
211.29 	grant fund and then (2) be transferred from the federal grant fund to the credit of the 
211.30 	commissioner of human services in the appropriate account upon certification by the 
211.31 	commissioner of human services that the amounts requested to be transferred have been 
211.32 	earned or are required for the purposes of this section. Funds received by the federal 
211.33 	grant fund need not be budgeted as such, provided transfers from the fund are budgeted 
211.34 	for allotment purposes in the appropriate appropriation.
212.1 		Subd. 6.Wages. Notwithstanding section 177.24 or any other law to the 
212.2 	contrary, wages paid to patients working within this program are at the discretion of the 
212.3 	commissioner of human services.

212.4 	Sec. 2. Minnesota Statutes 2006, section 253B.18, subdivision 4c, is amended to read:
212.5 		Subd. 4c.Special review board. (a) The commissioner shall establish one or more 
212.6 	panels of a special review board for persons committed as mentally ill and dangerous to 
212.7 	the public. The board shall consist of three members experienced in the field of mental 
212.8 	illness. One member of each special review board panel shall be a psychiatrist and one 
212.9 	member shall be an attorney. No member shall be affiliated with the Department of 
212.10 	Human Services. The special review board shall meet at least every six months and at 
212.11 	the call of the commissioner. It shall hear and consider all petitions for a reduction in 
212.12 	custody or to appeal a revocation of provisional discharge. A "reduction in custody" 
212.13 	means transfer from a secure treatment facility; all petitions for, discharge, and provisional 
212.14 	discharge, and revocation of provisional discharge; and make recommendations to the 
212.15 	commissioner concerning them. Patients may be transferred by the commissioner between 
212.16 	secure treatment facilities without a special review board hearing.
212.17 	(b) Members of the special review board shall receive compensation and 
212.18 	reimbursement for expenses as established by the commissioner.
212.19 	(b) A petition filed by a person committed as mentally ill and dangerous to the 
212.20 	public under this section must be heard as provided in subdivision 5 and, as applicable, 
212.21 	subdivision 13. A petition filed by a person committed as a sexual psychopathic 
212.22 	personality or as a sexually dangerous person under section 253B.185, or committed 
212.23 	as both mentally ill and dangerous to the public under this section and as a sexual 
212.24 	psychopathic personality or as a sexually dangerous person must be heard as provided in 
212.25 	section 253B.185, subdivision 9.

212.26 	Sec. 3. Minnesota Statutes 2006, section 253B.18, subdivision 5, is amended to read:
212.27 		Subd. 5.Petition; notice of hearing; attendance; order. (a) A petition for an 
212.28 	order of transfer, discharge, provisional discharge,a reduction in custody or revocation of 
212.29 	provisional discharge shall be filed with the commissioner and may be filed by the patient 
212.30 	or by the head of the treatment facility. A patient may not petition the special review 
212.31 	board for six months following commitment under subdivision 3 or following the final 
212.32 	disposition of any previous petition and subsequent appeal by the patient. The medical 
212.33 	director may petition at any time.
213.1 	(b) Fourteen days prior to the hearing, the committing court, the county attorney of 
213.2 	the county of commitment, the designated agency, interested person, the petitioner, and 
213.3 	the petitioner's counsel shall be given written notice by the commissioner of the time and 
213.4 	place of the hearing before the special review board. Only those entitled to statutory notice 
213.5 	of the hearing or those administratively required to attend may be present at the hearing. 
213.6 	The patient may designate interested persons to receive notice by providing the names 
213.7 	and addresses to the commissioner at least 21 days before the hearing. The board shall 
213.8 	provide the commissioner with written findings of fact and recommendations within 21 
213.9 	days of the hearing. The commissioner shall issue an order no later than 14 days after 
213.10 	receiving the recommendation of the special review board. A copy of the order shall be 
213.11 	sent by certified mail mailed to every person entitled to statutory notice of the hearing 
213.12 	within five days after it is signed. No order by the commissioner shall be effective sooner 
213.13 	than 30 days after the order is signed, unless the county attorney, the patient, and the 
213.14 	commissioner agree that it may become effective sooner.
213.15 	(c) The special review board shall hold a hearing on each petition prior to making 
213.16 	its recommendation to the commissioner. The special review board proceedings are not 
213.17 	contested cases as defined in chapter 14. Any person or agency receiving notice that 
213.18 	submits documentary evidence to the special review board prior to the hearing shall also 
213.19 	provide copies to the patient, the patient's counsel, the county attorney of the county of 
213.20 	commitment, the case manager, and the commissioner.
213.21 	(d) Prior to the final decision by the commissioner, the special review board may be 
213.22 	reconvened to consider events or circumstances that occurred subsequent to the hearing.
213.23 	(e) In making their recommendations and order, the special review board and 
213.24 	commissioner must consider any statements received from victims under subdivision 5a.

213.25 	Sec. 4. Minnesota Statutes 2006, section 253B.18, subdivision 5a, is amended to read:
213.26 		Subd. 5a.Victim notification of petition and release; right to submit statement.
 213.27 	(a) As used in this subdivision:
213.28 	(1) "crime" has the meaning given to "violent crime" in section 609.1095, and 
213.29 	includes criminal sexual conduct in the fifth degree and offenses within the definition of 
213.30 	"crime against the person" in section 253B.02, subdivision 4a, and also includes offenses 
213.31 	listed in section 253B.02, subdivision 7a, paragraph (b), regardless of whether they are 
213.32 	sexually motivated;
213.33 	(2) "victim" means a person who has incurred loss or harm as a result of a crime 
213.34 	the behavior for which forms the basis for a commitment under this section or section 
213.35 	253B.185; and
214.1 	(3) "convicted" and "conviction" have the meanings given in section 609.02, 
214.2 	subdivision 5, and also include juvenile court adjudications, findings under Minnesota 
214.3 	Rules of Criminal Procedure, Rule 20.02, that the elements of a crime have been proved, 
214.4 	and findings in commitment cases under this section or section 253B.185 that an act or 
214.5 	acts constituting a crime occurred.
214.6 	(b) A county attorney who files a petition to commit a person under this section 
214.7 	or section 253B.185 shall make a reasonable effort to provide prompt notice of filing 
214.8 	the petition to any victim of a crime for which the person was convicted. In addition, 
214.9 	the county attorney shall make a reasonable effort to promptly notify the victim of the 
214.10 	resolution of the petition.
214.11 	(c) Before provisionally discharging, discharging, granting pass-eligible status, 
214.12 	approving a pass plan, or otherwise permanently or temporarily releasing a person 
214.13 	committed under this section or section 253B.185 from a treatment facility, the head of the 
214.14 	treatment facility shall make a reasonable effort to notify any victim of a crime for which 
214.15 	the person was convicted that the person may be discharged or released and that the victim 
214.16 	has a right to submit a written statement regarding decisions of the medical director, 
214.17 	special review board, or commissioner with respect to the person. To the extent possible, 
214.18 	the notice must be provided at least 14 days before any special review board hearing or 
214.19 	before a determination on a pass plan. Notwithstanding section 611A.06, subdivision 4, 
214.20 	the commissioner shall provide the judicial appeal panel with victim information in order 
214.21 	to comply with the provisions of this section. The judicial appeal panel shall ensure that 
214.22 	the data on victims remains private as provided for in section 611A.06, subdivision 4.
214.23 	(d) This subdivision applies only to victims who have requested notification by 
214.24 	contacting, in writing, the county attorney in the county where the conviction for the crime 
214.25 	occurred. A county attorney who receives a request for notification under this paragraph 
214.26 	shall promptly forward the request to the commissioner of human services.
214.27 	(e) The rights under this subdivision are in addition to rights available to a victim 
214.28 	under chapter 611A. This provision does not give a victim all the rights of a "notified 
214.29 	person" or a person "entitled to statutory notice" under subdivision 4a, 4b, or 5.

214.30 	Sec. 5. Minnesota Statutes 2006, section 253B.185, is amended by adding a 
214.31 	subdivision to read:
214.32 		Subd. 9.Petition for reduction in custody. (a) This subdivision applies only 
214.33 	to committed persons as defined in paragraph (b). The procedures in section 253B.18, 
214.34 	subdivision 5a, for victim notification and right to submit a statement under section 
215.1 	253B.18 apply to petitions filed and reductions in custody recommended under this 
215.2 	subdivision.
215.3 	(b) As used in this subdivision:
215.4 	(1) "committed person" means an individual committed under this section, or under 
215.5 	this section and under section 253B.18, as mentally ill and dangerous. It does not include 
215.6 	persons committed only as mentally ill and dangerous under section 253B.18; and
215.7 	(2) "reduction in custody" means transfer out of a secure treatment facility, a 
215.8 	provisional discharge, or a discharge from commitment.
215.9 	(c) A petition for a reduction in custody or an appeal of a revocation of provisional 
215.10 	discharge may be filed by either the committed person or by the head of the treatment 
215.11 	facility and must be filed with and considered by the special review board. A committed 
215.12 	person may not petition the special review board any sooner than six months following 
215.13 	either:
215.14 	(1) the entry of judgment in the district court of the order for commitment issued 
215.15 	under section 253B.18, subdivision 3, or upon the exhaustion of all related appeal rights 
215.16 	in state court relating to that order, whichever is later; or
215.17 	(2) any recommendation of the special review board or order of the judicial appeal 
215.18 	panel, or upon the exhaustion of all appeal rights in state court, whichever is later. The 
215.19 	medical director may petition at any time. The special review board proceedings are not 
215.20 	contested cases as defined in chapter 14.
215.21 	(d) The special review board shall hold a hearing on each petition before issuing a 
215.22 	recommendation under paragraph (f). Fourteen days before the hearing, the committing 
215.23 	court, the county attorney of the county of commitment, the designated agency, an 
215.24 	interested person, the petitioner and the petitioner's counsel, and the committed person 
215.25 	and the committed person's counsel must be given written notice by the commissioner of 
215.26 	the time and place of the hearing before the special review board. Only those entitled to 
215.27 	statutory notice of the hearing or those administratively required to attend may be present 
215.28 	at the hearing. The patient may designate interested persons to receive notice by providing 
215.29 	the names and addresses to the commissioner at least 21 days before the hearing.
215.30 	(e) A person or agency receiving notice that submits documentary evidence to the 
215.31 	special review board before the hearing must also provide copies to the committed person, 
215.32 	the committed person's counsel, the county attorney of the county of commitment, the case 
215.33 	manager, and the commissioner. The special review board must consider any statements 
215.34 	received from victims under section 253B.18, subdivision 5a.
215.35 	(f) Within 30 days of the hearing, the special review board shall issue written 
215.36 	findings of fact and shall recommend denial or approval of the petition to the judicial 
216.1 	appeal panel established under section 253B.19. The commissioner shall forward the 
216.2 	recommendation of the special review board to the judicial appeal panel and to every 
216.3 	person entitled to statutory notice. No reduction in custody or reversal of a revocation 
216.4 	of provisional discharge recommended by the special review board is effective until it 
216.5 	has been reviewed by the judicial appeal panel and until 15 days after an order from the 
216.6 	judicial appeal panel affirming, modifying, or denying the recommendation.

216.7 	Sec. 6. Minnesota Statutes 2006, section 253B.19, subdivision 2, is amended to read:
216.8 		Subd. 2.Petition; hearing. The committed person or the county attorney of the 
216.9 	county from which a patient was committed as a person who is mentally ill and dangerous 
216.10 	to the public, or as a sexual psychopathic personality or as a sexually dangerous person 
216.11 	may petition the appeal panel for a rehearing and reconsideration of a decision by the 
216.12 	commissioner. The petition shall be filed with the Supreme Court within 30 days after the 
216.13 	decision of the commissioner is signed. The Supreme Court shall refer the petition to the 
216.14 	chief judge of the appeal panel. (a) A person committed as mentally ill and dangerous to 
216.15 	the public under section 253B.18, or the county attorney of the county from which the 
216.16 	person was committed or the county of financial responsibility, may petition the judicial 
216.17 	appeal panel for a rehearing and reconsideration of a decision by the commissioner under 
216.18 	section 253B.18, subdivision 5. The judicial appeal panel must not consider petitions for 
216.19 	relief other than those considered by the commissioner from which the appeal is taken. 
216.20 	The petition must be filed with the supreme court within 30 days after the decision of the 
216.21 	commissioner is signed. The hearing must be held within 45 days of the filing of the 
216.22 	petition unless an extension is granted for good cause.
216.23 	(b) A person committed as a sexual psychopathic personality or as a sexually 
216.24 	dangerous person under section 253B.185, or committed as both mentally ill and 
216.25 	dangerous to the public under section 253B.18 and as a sexual psychopathic personality or 
216.26 	as a sexually dangerous person under section 253B.185; the county attorney of the county 
216.27 	from which the person was committed or the county of financial responsibility; or the 
216.28 	commissioner may petition the judicial appeal panel for a rehearing and reconsideration 
216.29 	of a decision of the special review board under section 253B.185, subdivision 9. The 
216.30 	petition must be filed with the supreme court within 30 days after the decision is mailed 
216.31 	by the commissioner as required in section 253B.185, subdivision 9, paragraph (f). The 
216.32 	hearing must be held within 180 days of the filing of the petition unless an extension is 
216.33 	granted for good cause. If no party petitions the judicial appeal panel for a rehearing 
216.34 	or reconsideration within 30 days, the judicial appeal panel shall either issue an order 
217.1 	adopting the recommendations of the special review board or set the matter on for a 
217.2 	hearing pursuant to this paragraph.
217.3 	(c) For an appeal under paragraph (a) or (b), the Supreme Court shall refer the 
217.4 	petition to the chief judge of the judicial appeal panel. The chief judge shall notify the 
217.5 	patient, the county attorney of the county of commitment, the designated agency, the 
217.6 	commissioner, the head of the treatment facility, any interested person, and other persons 
217.7 	the chief judge designates, of the time and place of the hearing on the petition. The notice 
217.8 	shall be given at least 14 days prior to the date of the hearing. The hearing shall be within 
217.9 	45 days of the filing of the petition unless an extension is granted for good cause.
217.10 	(d) Any person may oppose the petition. The patient; patient's counsel; the county 
217.11 	attorney of the committing county or the county of financial responsibility; and the 
217.12 	commissioner shall participate as parties to the proceeding pending before the judicial 
217.13 	appeal panel and shall, no later than 20 days before the hearing on the petition, inform the 
217.14 	judicial appeal panel and the opposing party in writing whether they support or oppose the 
217.15 	petition and provide a summary of facts in support of their position. The judicial appeal 
217.16 	panel may appoint examiners and may adjourn the hearing from time to time. It shall hear 
217.17 	and receive all relevant testimony and evidence and make a record of all proceedings. 
217.18 	The patient,;  patient's counsel,;  and the county attorney of the committing county may
217.19 	or the county of financial responsibility have the right to be present and may present 
217.20 	and cross-examine all witnesses and offer a factual and legal basis in support of their 
217.21 	positions. The petitioning party bears the burden of going forward with the evidence. The 
217.22 	party opposing discharge bears the burden of proof by clear and convincing evidence that 
217.23 	the respondent is in need of commitment.

217.24 	Sec. 7. Minnesota Statutes 2006, section 253B.19, subdivision 3, is amended to read:
217.25 		Subd. 3.Decision. A majority of the judicial appeal panel shall rule upon the 
217.26 	petition. The panel shall consider the petition de novo. The order of the judicial appeal 
217.27 	panel shall supersede thean order of the commissioner in the cases under section 253B.18, 
217.28 	subdivision 5. No order of the judicial appeal panel granting a transfer, discharge or 
217.29 	provisional discharge shall be made effective sooner than 15 days after it is issued. 
217.30 	The panel may not consider petitions for relief other than those considered by the 
217.31 	commissioner or special review board from which the appeal is taken. The judicial appeal
217.32 	panel may not grant a transfer or provisional discharge on terms or conditions that were 
217.33 	not presented to the commissioner or the special review board.

217.34 	Sec. 8. Minnesota Statutes 2006, section 626.5572, subdivision 21, is amended to read:
218.1 		Subd. 21.Vulnerable adult. "Vulnerable adult" means any person 18 years of 
218.2 	age or older who:
218.3 	(1) is a resident or inpatient of a facility;
218.4 	(2) receives services at or from a facility required to be licensed to serve adults 
218.5 	under sections 245A.01 to 245A.15, except that a person receiving outpatient services for 
218.6 	treatment of chemical dependency or mental illness, or one who is served in the Minnesota 
218.7 	sex offender program, is on a court hold order for commitment, or is committed as a 
218.8 	sexual psychopathic personality or as a sexually dangerous person under chapter 253B, is 
218.9 	not considered a vulnerable adult unless the person meets the requirements of clause (4);
218.10 	(3) receives services from a home care provider required to be licensed under section 
218.11 	144A.46; or from a person or organization that exclusively offers, provides, or arranges 
218.12 	for personal care assistant services under the medical assistance program as authorized 
218.13 	under sections 256B.04, subdivision 16, 256B.0625, subdivision 19a, 256B.0651, and 
218.14 	256B.0653 to 256B.0656; or
218.15 	(4) regardless of residence or whether any type of service is received, possesses a 
218.16 	physical or mental infirmity or other physical, mental, or emotional dysfunction:
218.17 	(i) that impairs the individual's ability to provide adequately for the individual's 
218.18 	own care without assistance, including the provision of food, shelter, clothing, health 
218.19 	care, or supervision; and
218.20 	(ii) because of the dysfunction or infirmity and the need for assistance, the individual 
218.21 	has an impaired ability to protect the individual from maltreatment.

218.22 	Sec. 9. MINNESOTA SEX OFFENDER PROGRAM; OPERATING 
218.23 	STANDARDS.
 218.24 	The commissioner of human services shall convene a working group of interested 
218.25 	parties to develop standards and guidelines for the operations of the Minnesota sex 
218.26 	offender program. The standards and guidelines shall include, but not be limited to:
218.27 	(1) criteria to establish a sex offender treatment advisory board;
218.28 	(2) criteria to ensure the necessary provision of health and dental care for patients;
218.29 	(3) criteria to ensure the necessary provision of mental health care; and
218.30 	(4) fire and safety criteria.
218.31 	The standards and guidelines shall be developed by the commissioner in consultation 
218.32 	with the working group members by February 1, 2009, and presented to the chairs of 
218.33 	the policy and finance committees having jurisdiction over the Minnesota sex offender 
218.34 	program for review.

219.1 	ARTICLE 22
219.2 	CHILDREN AND FAMILY SERVICES

219.3 	Section 1. Minnesota Statutes 2007 Supplement, section 256.01, subdivision 2, is 
219.4 	amended to read:
219.5 		Subd. 2.Specific powers. Subject to the provisions of section 241.021, subdivision 
219.6 	2, the commissioner of human services shall carry out the specific duties in paragraphs (a) 
219.7 	through (cc):
219.8 	(a) Administer and supervise all forms of public assistance provided for by state law 
219.9 	and other welfare activities or services as are vested in the commissioner. Administration 
219.10 	and supervision of human services activities or services includes, but is not limited to, 
219.11 	assuring timely and accurate distribution of benefits, completeness of service, and quality 
219.12 	program management. In addition to administering and supervising human services 
219.13 	activities vested by law in the department, the commissioner shall have the authority to:
219.14 	(1) require county agency participation in training and technical assistance programs 
219.15 	to promote compliance with statutes, rules, federal laws, regulations, and policies 
219.16 	governing human services;
219.17 	(2) monitor, on an ongoing basis, the performance of county agencies in the 
219.18 	operation and administration of human services, enforce compliance with statutes, rules, 
219.19 	federal laws, regulations, and policies governing welfare services and promote excellence 
219.20 	of administration and program operation;
219.21 	(3) develop a quality control program or other monitoring program to review county 
219.22 	performance and accuracy of benefit determinations;
219.23 	(4) require county agencies to make an adjustment to the public assistance benefits 
219.24 	issued to any individual consistent with federal law and regulation and state law and rule 
219.25 	and to issue or recover benefits as appropriate;
219.26 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
219.27 	administrative reimbursement according to the procedures set forth in section 256.017;
219.28 	(6) make contracts with and grants to public and private agencies and organizations, 
219.29 	both profit and nonprofit, and individuals, using appropriated funds; and
219.30 	(7) enter into contractual agreements with federally recognized Indian tribes with 
219.31 	a reservation in Minnesota to the extent necessary for the tribe to operate a federally 
219.32 	approved family assistance program or any other program under the supervision of the 
219.33 	commissioner. The commissioner shall consult with the affected county or counties in 
219.34 	the contractual agreement negotiations, if the county or counties wish to be included, 
219.35 	in order to avoid the duplication of county and tribal assistance program services. The 
220.1 	commissioner may establish necessary accounts for the purposes of receiving and 
220.2 	disbursing funds as necessary for the operation of the programs.
220.3 	(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, 
220.4 	regulation, and policy necessary to county agency administration of the programs.
220.5 	(c) Administer and supervise all child welfare activities; promote the enforcement of 
220.6 	laws protecting disabled, dependent, neglected and delinquent children, and children born 
220.7 	to mothers who were not married to the children's fathers at the times of the conception 
220.8 	nor at the births of the children; license and supervise child-caring and child-placing 
220.9 	agencies and institutions; supervise the care of children in boarding and foster homes or 
220.10 	in private institutions; and generally perform all functions relating to the field of child 
220.11 	welfare now vested in the State Board of Control.
220.12 	(d) Administer and supervise all noninstitutional service to disabled persons, 
220.13 	including those who are visually impaired, hearing impaired, or physically impaired 
220.14 	or otherwise disabled. The commissioner may provide and contract for the care and 
220.15 	treatment of qualified indigent children in facilities other than those located and available 
220.16 	at state hospitals when it is not feasible to provide the service in state hospitals.
220.17 	(e) Assist and actively cooperate with other departments, agencies and institutions, 
220.18 	local, state, and federal, by performing services in conformity with the purposes of Laws 
220.19 	1939, chapter 431.
220.20 	(f) Act as the agent of and cooperate with the federal government in matters of 
220.21 	mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 
220.22 	431, including the administration of any federal funds granted to the state to aid in the 
220.23 	performance of any functions of the commissioner as specified in Laws 1939, chapter 431, 
220.24 	and including the promulgation of rules making uniformly available medical care benefits 
220.25 	to all recipients of public assistance, at such times as the federal government increases its 
220.26 	participation in assistance expenditures for medical care to recipients of public assistance, 
220.27 	the cost thereof to be borne in the same proportion as are grants of aid to said recipients.
220.28 	(g) Establish and maintain any administrative units reasonably necessary for the 
220.29 	performance of administrative functions common to all divisions of the department.
220.30 	(h) Act as designated guardian of both the estate and the person of all the wards of 
220.31 	the state of Minnesota, whether by operation of law or by an order of court, without any 
220.32 	further act or proceeding whatever, except as to persons committed as developmentally 
220.33 	disabled. For children under the guardianship of the commissioner or a tribe in Minnesota 
220.34 	recognized by the Secretary of the Interior whose interests would be best served by 
220.35 	adoptive placement, the commissioner may contract with a licensed child-placing agency 
220.36 	or a Minnesota tribal social services agency to provide adoption services. A contract 
221.1 	with a licensed child-placing agency must be designed to supplement existing county 
221.2 	efforts and may not replace existing county programs or tribal social services, unless the 
221.3 	replacement is agreed to by the county board and the appropriate exclusive bargaining 
221.4 	representative, tribal governing body, or the commissioner has evidence that child 
221.5 	placements of the county continue to be substantially below that of other counties. Funds 
221.6 	encumbered and obligated under an agreement for a specific child shall remain available 
221.7 	until the terms of the agreement are fulfilled or the agreement is terminated.
221.8 	(i) Act as coordinating referral and informational center on requests for service for 
221.9 	newly arrived immigrants coming to Minnesota.
221.10 	(j) The specific enumeration of powers and duties as hereinabove set forth shall in no 
221.11 	way be construed to be a limitation upon the general transfer of powers herein contained.
221.12 	(k) Establish county, regional, or statewide schedules of maximum fees and charges 
221.13 	which may be paid by county agencies for medical, dental, surgical, hospital, nursing and 
221.14 	nursing home care and medicine and medical supplies under all programs of medical 
221.15 	care provided by the state and for congregate living care under the income maintenance 
221.16 	programs.
221.17 	(l) Have the authority to conduct and administer experimental projects to test 
221.18 	methods and procedures of administering assistance and services to recipients or potential 
221.19 	recipients of public welfare. To carry out such experimental projects, it is further provided 
221.20 	that the commissioner of human services is authorized to waive the enforcement of 
221.21 	existing specific statutory program requirements, rules, and standards in one or more 
221.22 	counties. The order establishing the waiver shall provide alternative methods and 
221.23 	procedures of administration, shall not be in conflict with the basic purposes, coverage, or 
221.24 	benefits provided by law, and in no event shall the duration of a project exceed four years. 
221.25 	It is further provided that no order establishing an experimental project as authorized by 
221.26 	the provisions of this section shall become effective until the following conditions have 
221.27 	been met:
221.28 	(1) the secretary of health and human services of the United States has agreed, for 
221.29 	the same project, to waive state plan requirements relative to statewide uniformity; and
221.30 	(2) a comprehensive plan, including estimated project costs, shall be approved by 
221.31 	the Legislative Advisory Commission and filed with the commissioner of administration.
221.32 	(m) According to federal requirements, establish procedures to be followed by 
221.33 	local welfare boards in creating citizen advisory committees, including procedures for 
221.34 	selection of committee members.
221.35 	(n) Allocate federal fiscal disallowances or sanctions which are based on quality 
221.36 	control error rates for the aid to families with dependent children program formerly 
222.1 	codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the 
222.2 	following manner:
222.3 	(1) one-half of the total amount of the disallowance shall be borne by the county 
222.4 	boards responsible for administering the programs. For the medical assistance and the 
222.5 	AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be 
222.6 	shared by each county board in the same proportion as that county's expenditures for the 
222.7 	sanctioned program are to the total of all counties' expenditures for the AFDC program 
222.8 	formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the 
222.9 	food stamp program, sanctions shall be shared by each county board, with 50 percent of 
222.10 	the sanction being distributed to each county in the same proportion as that county's 
222.11 	administrative costs for food stamps are to the total of all food stamp administrative costs 
222.12 	for all counties, and 50 percent of the sanctions being distributed to each county in the 
222.13 	same proportion as that county's value of food stamp benefits issued are to the total of 
222.14 	all benefits issued for all counties. Each county shall pay its share of the disallowance 
222.15 	to the state of Minnesota. When a county fails to pay the amount due hereunder, the 
222.16 	commissioner may deduct the amount from reimbursement otherwise due the county, or 
222.17 	the attorney general, upon the request of the commissioner, may institute civil action 
222.18 	to recover the amount due; and
222.19 	(2) notwithstanding the provisions of clause (1), if the disallowance results from 
222.20 	knowing noncompliance by one or more counties with a specific program instruction, and 
222.21 	that knowing noncompliance is a matter of official county board record, the commissioner 
222.22 	may require payment or recover from the county or counties, in the manner prescribed in 
222.23 	clause (1), an amount equal to the portion of the total disallowance which resulted from the 
222.24 	noncompliance, and may distribute the balance of the disallowance according to clause (1).
222.25 	(o) Develop and implement special projects that maximize reimbursements and 
222.26 	result in the recovery of money to the state. For the purpose of recovering state money, 
222.27 	the commissioner may enter into contracts with third parties. Any recoveries that result 
222.28 	from projects or contracts entered into under this paragraph shall be deposited in the 
222.29 	state treasury and credited to a special account until the balance in the account reaches 
222.30 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
222.31 	transferred and credited to the general fund. All money in the account is appropriated to 
222.32 	the commissioner for the purposes of this paragraph.
222.33 	(p) Have the authority to make direct payments to facilities providing shelter 
222.34 	to women and their children according to section 256D.05, subdivision 3. Upon 
222.35 	the written request of a shelter facility that has been denied payments under section 
222.36 	256D.05, subdivision 3, the commissioner shall review all relevant evidence and make 
223.1 	a determination within 30 days of the request for review regarding issuance of direct 
223.2 	payments to the shelter facility. Failure to act within 30 days shall be considered a 
223.3 	determination not to issue direct payments.
223.4 	(q) Have the authority to establish and enforce the following county reporting 
223.5 	requirements:
223.6 	(1) the commissioner shall establish fiscal and statistical reporting requirements 
223.7 	necessary to account for the expenditure of funds allocated to counties for human 
223.8 	services programs. When establishing financial and statistical reporting requirements, the 
223.9 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
223.10 	the reports can be simplified or the number of reports can be reduced;
223.11 	(2) the county board shall submit monthly or quarterly reports to the department 
223.12 	as required by the commissioner. Monthly reports are due no later than 15 working days 
223.13 	after the end of the month. Quarterly reports are due no later than 30 calendar days after 
223.14 	the end of the quarter, unless the commissioner determines that the deadline must be 
223.15 	shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines 
223.16 	or risking a loss of federal funding. Only reports that are complete, legible, and in the 
223.17 	required format shall be accepted by the commissioner;
223.18 	(3) if the required reports are not received by the deadlines established in clause (2), 
223.19 	the commissioner may delay payments and withhold funds from the county board until 
223.20 	the next reporting period. When the report is needed to account for the use of federal 
223.21 	funds and the late report results in a reduction in federal funding, the commissioner shall 
223.22 	withhold from the county boards with late reports an amount equal to the reduction in 
223.23 	federal funding until full federal funding is received;
223.24 	(4) a county board that submits reports that are late, illegible, incomplete, or not 
223.25 	in the required format for two out of three consecutive reporting periods is considered 
223.26 	noncompliant. When a county board is found to be noncompliant, the commissioner 
223.27 	shall notify the county board of the reason the county board is considered noncompliant 
223.28 	and request that the county board develop a corrective action plan stating how the 
223.29 	county board plans to correct the problem. The corrective action plan must be submitted 
223.30 	to the commissioner within 45 days after the date the county board received notice 
223.31 	of noncompliance;
223.32 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year 
223.33 	after the date the report was originally due. If the commissioner does not receive a report 
223.34 	by the final deadline, the county board forfeits the funding associated with the report for 
223.35 	that reporting period and the county board must repay any funds associated with the 
223.36 	report received for that reporting period;
224.1 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
224.2 	under clause (3) or (5) if the county demonstrates that the commissioner failed to 
224.3 	provide appropriate forms, guidelines, and technical assistance to enable the county to 
224.4 	comply with the requirements. If the county board disagrees with an action taken by the 
224.5 	commissioner under clause (3) or (5), the county board may appeal the action according 
224.6 	to sections 14.57 to 14.69; and
224.7 	(7) counties subject to withholding of funds under clause (3) or forfeiture or 
224.8 	repayment of funds under clause (5) shall not reduce or withhold benefits or services to 
224.9 	clients to cover costs incurred due to actions taken by the commissioner under clause 
224.10 	(3) or (5).
224.11 	(r) Allocate federal fiscal disallowances or sanctions for audit exceptions when 
224.12 	federal fiscal disallowances or sanctions are based on a statewide random sample for 
224.13 	the foster care program under title IV-E of the Social Security Act, United States Code, 
224.14 	title 42, in direct proportion to each county's title IV-E foster care maintenance claim 
224.15 	for that period.
224.16 	(s) Be responsible for ensuring the detection, prevention, investigation, and 
224.17 	resolution of fraudulent activities or behavior by applicants, recipients, and other 
224.18 	participants in the human services programs administered by the department.
224.19 	(t) Require county agencies to identify overpayments, establish claims, and utilize 
224.20 	all available and cost-beneficial methodologies to collect and recover these overpayments 
224.21 	in the human services programs administered by the department.
224.22 	(u) Have the authority to administer a drug rebate program for drugs purchased 
224.23 	pursuant to the prescription drug program established under section 256.955 after the 
224.24 	beneficiary's satisfaction of any deductible established in the program. The commissioner 
224.25 	shall require a rebate agreement from all manufacturers of covered drugs as defined in 
224.26 	section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on 
224.27 	or after July 1, 2002, must include rebates for individuals covered under the prescription 
224.28 	drug program who are under 65 years of age. For each drug, the amount of the rebate shall 
224.29 	be equal to the rebate as defined for purposes of the federal rebate program in United 
224.30 	States Code, title 42, section 1396r-8. The manufacturers must provide full payment 
224.31 	within 30 days of receipt of the state invoice for the rebate within the terms and conditions 
224.32 	used for the federal rebate program established pursuant to section 1927 of title XIX of 
224.33 	the Social Security Act. The manufacturers must provide the commissioner with any 
224.34 	information necessary to verify the rebate determined per drug. The rebate program shall 
224.35 	utilize the terms and conditions used for the federal rebate program established pursuant to 
224.36 	section 1927 of title XIX of the Social Security Act.
225.1 	(v) Have the authority to administer the federal drug rebate program for drugs 
225.2 	purchased under the medical assistance program as allowed by section 1927 of title XIX 
225.3 	of the Social Security Act and according to the terms and conditions of section 1927. 
225.4 	Rebates shall be collected for all drugs that have been dispensed or administered in an 
225.5 	outpatient setting and that are from manufacturers who have signed a rebate agreement 
225.6 	with the United States Department of Health and Human Services.
225.7 	(w) Have the authority to administer a supplemental drug rebate program for drugs 
225.8 	purchased under the medical assistance program. The commissioner may enter into 
225.9 	supplemental rebate contracts with pharmaceutical manufacturers and may require prior 
225.10 	authorization for drugs that are from manufacturers that have not signed a supplemental 
225.11 	rebate contract. Prior authorization of drugs shall be subject to the provisions of section 
225.12 	256B.0625, subdivision 13.
225.13 	(x) Operate the department's communication systems account established in Laws 
225.14 	1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared 
225.15 	communication costs necessary for the operation of the programs the commissioner 
225.16 	supervises. A communications account may also be established for each regional 
225.17 	treatment center which operates communications systems. Each account must be used 
225.18 	to manage shared communication costs necessary for the operations of the programs the 
225.19 	commissioner supervises. The commissioner may distribute the costs of operating and 
225.20 	maintaining communication systems to participants in a manner that reflects actual usage. 
225.21 	Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and 
225.22 	other costs as determined by the commissioner. Nonprofit organizations and state, county, 
225.23 	and local government agencies involved in the operation of programs the commissioner 
225.24 	supervises may participate in the use of the department's communications technology and 
225.25 	share in the cost of operation. The commissioner may accept on behalf of the state any 
225.26 	gift, bequest, devise or personal property of any kind, or money tendered to the state for 
225.27 	any lawful purpose pertaining to the communication activities of the department. Any 
225.28 	money received for this purpose must be deposited in the department's communication 
225.29 	systems accounts. Money collected by the commissioner for the use of communication 
225.30 	systems must be deposited in the state communication systems account and is appropriated 
225.31 	to the commissioner for purposes of this section.
225.32 	(y) Receive any federal matching money that is made available through the medical 
225.33 	assistance program for the consumer satisfaction survey. Any federal money received for 
225.34 	the survey is appropriated to the commissioner for this purpose. The commissioner may 
225.35 	expend the federal money received for the consumer satisfaction survey in either year of 
225.36 	the biennium.
226.1 	(z) Designate community information and referral call centers and incorporate 
226.2 	cost reimbursement claims from the designated community information and referral 
226.3 	call centers into the federal cost reimbursement claiming processes of the department 
226.4 	according to federal law, rule, and regulations. Existing information and referral centers 
226.5 	provided by Greater Twin Cities United Way or existing call centers for which Greater 
226.6 	Twin Cities United Way has legal authority to represent, shall be included in these 
226.7 	designations upon review by the commissioner and assurance that these services are 
226.8 	accredited and in compliance with national standards. Any reimbursement is appropriated 
226.9 	to the commissioner and all designated information and referral centers shall receive 
226.10 	payments according to normal department schedules established by the commissioner 
226.11 	upon final approval of allocation methodologies from the United States Department of 
226.12 	Health and Human Services Division of Cost Allocation or other appropriate authorities.
226.13 	(aa) Develop recommended standards for foster care homes that address the 
226.14 	components of specialized therapeutic services to be provided by foster care homes with 
226.15 	those services.
226.16 	(bb) Authorize the method of payment to or from the department as part of the 
226.17 	human services programs administered by the department. This authorization includes the 
226.18 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
226.19 	the human services programs administered by the department.
226.20 	(cc) Have the authority to administer a drug rebate program for drugs purchased for 
226.21 	persons eligible for general assistance medical care under section 256D.03, subdivision 3. 
226.22 	For manufacturers that agree to participate in the general assistance medical care rebate 
226.23 	program, the commissioner shall enter into a rebate agreement for covered drugs as 
226.24 	defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the 
226.25 	rebate shall be equal to the rebate as defined for purposes of the federal rebate program in 
226.26 	United States Code, title 42, section 1396r-8. The manufacturers must provide payment 
226.27 	within the terms and conditions used for the federal rebate program established under 
226.28 	section 1927 of title XIX of the Social Security Act. The rebate program shall utilize 
226.29 	the terms and conditions used for the federal rebate program established under section 
226.30 	1927 of title XIX of the Social Security Act.
226.31 	Effective January 1, 2006, drug coverage under general assistance medical care shall 
226.32 	be limited to those prescription drugs that:
226.33 	(1) are covered under the medical assistance program as described in section 
226.34 	256B.0625, subdivisions 13 and 13d; and
226.35 	(2) are provided by manufacturers that have fully executed general assistance 
226.36 	medical care rebate agreements with the commissioner and comply with such agreements. 
227.1 	Prescription drug coverage under general assistance medical care shall conform to 
227.2 	coverage under the medical assistance program according to section 256B.0625, 
227.3 	subdivisions 13 to 13g.
227.4 	The rebate revenues collected under the drug rebate program are deposited in the 
227.5 	general fund.

227.6 	Sec. 2. Minnesota Statutes 2007 Supplement, section 256.741, subdivision 1, is 
227.7 	amended to read:
227.8 		Subdivision 1.Public assistance Definitions. (a) The term "direct support" as used 
227.9 	in this chapter and chapters 257, 518, 518A, and 518C refers to an assigned support 
227.10 	payment from an obligor which is paid directly to a recipient of TANF or MFIP public 
227.11 	assistance.
227.12 	(b) The term "public assistance" as used in this chapter and chapters 257, 518, 518A, 
227.13 	and 518C, includes any form of assistance provided under the AFDC program formerly 
227.14 	codified in sections 256.72 to 256.87, MFIP and MFIP-R formerly codified under chapter 
227.15 	256, MFIP under chapter 256J, work first program formerly codified under chapter 256K; 
227.16 	child care assistance provided through the child care fund under chapter 119B; any form 
227.17 	of medical assistance under chapter 256B; MinnesotaCare under chapter 256L; and foster 
227.18 	care as provided under title IV-E of the Social Security Act. 
227.19 	(c) The term "child support agency" as used in this section refers to the public 
227.20 	authority responsible for child support enforcement.
227.21 	(d) The term "public assistance agency" as used in this section refers to a public 
227.22 	authority providing public assistance to an individual.
227.23 	(e) The terms "child support" and "arrears" as used in this section have the meanings 
227.24 	provided in section 518A.26.
227.25 	(f) The term "maintenance" as used in this section has the meaning provided in 
227.26 	section 518.003.

227.27 	Sec. 3. Minnesota Statutes 2006, section 256.741, subdivision 2, is amended to read:
227.28 		Subd. 2.Assignment of support and maintenance rights. (a) An individual 
227.29 	receiving public assistance in the form of assistance under any of the following programs: 
227.30 	the AFDC program formerly codified in sections 256.72 to 256.87, MFIP under chapter 
227.31 	256J, MFIP-R and MFIP formerly codified under chapter 256, or work first program 
227.32 	formerly codified under chapter 256K is considered to have assigned to the state at the 
227.33 	time of application all rights to child support and maintenance from any other person the 
227.34 	applicant or recipient may have in the individual's own behalf or in the behalf of any other 
228.1 	family member for whom application for public assistance is made. An assistance unit is 
228.2 	ineligible for the Minnesota family investment program unless the caregiver assigns all 
228.3 	rights to child support and spousal maintenance benefits according to this section. 
228.4 	(1) AnThe assignment made according to this section is effective as to:
228.5 	(i) any current child support and current spousal maintenance; and.
228.6 	(ii) any accrued child support and spousal maintenance arrears.
228.7 	(2) An assignment made after September 30, 1997, is effective as to:
228.8 	(i) any current child support and current spousal maintenance;
228.9 	(ii) any accrued child support and spousal maintenance arrears collected before 
228.10 	October 1, 2000, or the date the individual terminates assistance, whichever is later; and
228.11 	(iii) any accrued child support and spousal maintenance arrears collected under 
228.12 	federal tax intercept.
228.13 	(2) Any child support or maintenance arrears that accrue while an individual is 
228.14 	receiving public assistance in the form of assistance under any of the programs listed in 
228.15 	this paragraph are permanently assigned to the state.
228.16 	(3) The assignment of current child support and current maintenance ends on the 
228.17 	date the individual ceases to receive or is no longer eligible to receive public assistance 
228.18 	under any of the programs listed in this paragraph.
228.19 	(b) An individual receiving public assistance in the form of medical assistance, 
228.20 	including MinnesotaCare, is considered to have assigned to the state at the time of 
228.21 	application all rights to medical support from any other person the individual may have 
228.22 	in the individual's own behalf or in the behalf of any other family member for whom 
228.23 	medical assistance is provided.
228.24 	(1) An assignment made after September 30, 1997, is effective as to any medical 
228.25 	support accruing after the date of medical assistance or MinnesotaCare eligibility.
228.26 	(2) Any medical support arrears that accrue while an individual is receiving public 
228.27 	assistance in the form of medical assistance, including MinnesotaCare, are permanently 
228.28 	assigned to the state.
228.29 	(3) The assignment of current medical support ends on the date the individual ceases 
228.30 	to receive or is no longer eligible to receive public assistance in the form of medical 
228.31 	assistance, including MinnesotaCare.
228.32 	(c) An individual receiving public assistance in the form of child care assistance 
228.33 	under the child care fund pursuant to chapter 119B is considered to have assigned to the 
228.34 	state at the time of application all rights to child care support from any other person the 
228.35 	individual may have in the individual's own behalf or in the behalf of any other family 
228.36 	member for whom child care assistance is provided.
229.1 	An(1) The assignment made according to this paragraph is effective as to:
229.2 	(1) any current child care support and any child care support arrears assigned and 
229.3 	accruing after July 1, 1997, that are collected before October 1, 2000; and.
229.4 	(2) any accrued child care support arrears collected under federal tax intercept. Any 
229.5 	child care support arrears that accrue while an individual is receiving public assistance in 
229.6 	the form of child care assistance under the child care fund in chapter 119B are permanently 
229.7 	assigned to the state.
229.8 	(3) The assignment of current child care support ends on the date the individual 
229.9 	ceases to receive or is no longer eligible to receive public assistance in the form of child 
229.10 	care assistance under the child care fund under chapter 119B.

229.11 	Sec. 4. Minnesota Statutes 2006, section 256.741, subdivision 2a, is amended to read:
229.12 		Subd. 2a.Families-first Distribution of child support arrearages. (a) The 
229.13 	state shall distribute current child support and maintenance received by the state to an 
229.14 	individual who assigns the right to that support under subdivision 2, paragraph (a).
229.15 	(b) When the public authority collects child support arrearages on behalf of an 
229.16 	individual who is receiving public assistance provided under MFIP or MFIP-R under 
229.17 	this chapter, MFIP under chapter 256J, or work first under chapter 256K, and the public 
229.18 	authority has the option of applying the collection to arrears permanently assigned to the 
229.19 	state or to arrears temporarily assigned to the state, the public authority shall first apply the 
229.20 	collection to satisfy those arrears that are permanently assigned to the state.
229.21 	(c) When the public authority collects child support arrearages on behalf of an 
229.22 	individual who is not receiving public assistance, the public authority shall first apply the 
229.23 	collection to satisfy those arrears that are not permanently assigned to the state.
229.24 	(d) When the public authority collects child support arrearages certified under the 
229.25 	federal tax offset, the public authority shall first apply the collection to satisfy those arrears 
229.26 	that are permanently assigned to the state.

229.27 	Sec. 5. Minnesota Statutes 2006, section 256.741, subdivision 3, is amended to read:
229.28 		Subd. 3.Existing assignments. Assignments based on the receipt of public 
229.29 	assistance in existence prior to July 1, 1997, are permanently assigned to the state. Arrears 
229.30 	that accrued prior to the receipt of assistance that were assigned to the state between July 
229.31 	1, 1997, and October 1, 2009, will no longer be assigned as of October 1, 2009.

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

230.1 	Sec. 6. Minnesota Statutes 2007 Supplement, section 256J.20, subdivision 3, is 
230.2 	amended to read:
230.3 		Subd. 3.Other property limitations. To be eligible for MFIP, the equity value of 
230.4 	all nonexcluded real and personal property of the assistance unit must not exceed $2,000 
230.5 	for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 
230.6 	(19) must be excluded when determining the equity value of real and personal property:
230.7 	(1) a licensed vehicle up to a loan value of less than or equal to $15,000. If the 
230.8 	assistance unit owns more than one licensed vehicle, the county agency shall determine the 
230.9 	loan value of all additional vehicles and exclude the combined loan value of less than or 
230.10 	equal to $7,500. The county agency shall apply any excess loan value as if it were equity 
230.11 	value to the asset limit described in this section, excluding: (i) the value of one vehicle 
230.12 	per physically disabled person when the vehicle is needed to transport the disabled unit 
230.13 	member; this exclusion does not apply to mentally disabled people; (ii) the value of special 
230.14 	equipment for a disabled member of the assistance unit; and (iii) any vehicle used for 
230.15 	long-distance travel, other than daily commuting, for the employment of a unit member.
230.16 	To establish the loan value of vehicles, a county agency must use the N.A.D.A. 
230.17 	Official Used Car Guide, Midwest Edition, for newer model cars. When a vehicle is not 
230.18 	listed in the guidebook, or when the applicant or participant disputes the loan value listed 
230.19 	in the guidebook as unreasonable given the condition of the particular vehicle, the county 
230.20 	agency may require the applicant or participant document the loan value by securing a 
230.21 	written statement from a motor vehicle dealer licensed under section 168.27, stating 
230.22 	the amount that the dealer would pay to purchase the vehicle. The county agency shall 
230.23 	reimburse the applicant or participant for the cost of a written statement that documents 
230.24 	a lower loan value; 
230.25 	(2) the value of life insurance policies for members of the assistance unit;
230.26 	(3) one burial plot per member of an assistance unit;
230.27 	(4) the value of personal property needed to produce earned income, including 
230.28 	tools, implements, farm animals, inventory, business loans, business checking and 
230.29 	savings accounts used at least annually and used exclusively for the operation of a 
230.30 	self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 
230.31 	is to produce income and if the vehicles are essential for the self-employment business;
230.32 	(5) the value of personal property not otherwise specified which is commonly 
230.33 	used by household members in day-to-day living such as clothing, necessary household 
230.34 	furniture, equipment, and other basic maintenance items essential for daily living;
230.35 	(6) the value of real and personal property owned by a recipient of Supplemental 
230.36 	Security Income or Minnesota supplemental aid;
231.1 	(7) the value of corrective payments, but only for the month in which the payment 
231.2 	is received and for the following month;
231.3 	(8) a mobile home or other vehicle used by an applicant or participant as the 
231.4 	applicant's or participant's home;
231.5 	(9) money in a separate escrow account that is needed to pay real estate taxes or 
231.6 	insurance and that is used for this purpose;
231.7 	(10) money held in escrow to cover employee FICA, employee tax withholding, 
231.8 	sales tax withholding, employee worker compensation, business insurance, property rental, 
231.9 	property taxes, and other costs that are paid at least annually, but less often than monthly;
231.10 	(11) monthly assistance payments for the current month's or short-term emergency 
231.11 	needs under section 256J.626, subdivision 2; 
231.12 	(12) the value of school loans, grants, or scholarships for the period they are 
231.13 	intended to cover;
231.14 	(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 
231.15 	in escrow for a period not to exceed three months to replace or repair personal or real 
231.16 	property; 
231.17 	(14) income received in a budget month through the end of the payment month;
231.18 	(15) savings from earned income of a minor child or a minor parent that are set aside 
231.19 	in a separate account designated specifically for future education or employment costs;
231.20 	(16) the federal earned income credit, Minnesota working family credit, state and 
231.21 	federal income tax refunds, state homeowners and renters credits under chapter 290A, 
231.22 	property tax rebates and other federal or state tax rebates in the month received and the 
231.23 	following month;
231.24 	(17) payments excluded under federal law as long as those payments are held in a 
231.25 	separate account from any nonexcluded funds;
231.26 	(18) the assets of children ineligible to receive MFIP benefits because foster care or 
231.27 	adoption assistance payments are made on their behalf; and
231.28 	(19) the assets of persons whose income is excluded under section 256J.21, 
231.29 	subdivision 2, clause (43). 

231.30 	Sec. 7. Minnesota Statutes 2006, section 256J.24, subdivision 5, is amended to read:
231.31 		Subd. 5.MFIP transitional standard. The MFIP transitional standard is based 
231.32 	on the number of persons in the assistance unit eligible for both food and cash assistance 
231.33 	unless the restrictions in subdivision 6 on the birth of a child apply. The following table 
231.34 	represents the transitional standards effective October 1, 2004 2007.

232.1
232.2	Number of Eligible 
People
	Transitional 
Standard
	Cash Portion
	Food Portion

232.3	1
	$379 $391:
	$250
	$129 $141
	
232.4	2
	$675 $698:
	$437
	$238 $261
	
232.5	3
	$876 $910:
	$532
	$344 $378
	
232.6	4
	$1,036 $1,091:
	$621
	$415 $470
	
232.7	5
	$1,180 $1,245:
	$697
	$483 $548
	
232.8	6
	$1,350 $1,425:
	$773
	$577 $652
	
232.9	7
	$1,472 $1,553:
	$850
	$622 $703
	
232.10	8
	$1,623 $1,713:
	$916
	$707 $797
	
232.11	9
	$1,772 $1,871:
	$980
	$792 $891
	
232.12	10
	$1,915 $2,024:
	$1,035
	$880 $989
	
232.13	over 10
	add $142 $151:
	$53
	$89 $98
	
232.14	per additional member.
			
232.15 	The commissioner shall annually publish in the State Register the transitional 
232.16 	standard for an assistance unit sizes 1 to 10 including a breakdown of the cash and food 
232.17 	portions.

232.18 	Sec. 8. Minnesota Statutes 2006, section 256J.425, subdivision 1, is amended to read:
232.19 		Subdivision 1.Eligibility. (a) To be eligible for a hardship extension, a participant 
232.20 	in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must 
232.21 	be in compliance in the participant's 60th counted month. For purposes of determining 
232.22 	eligibility for a hardship extension, a participant is in compliance in any month that the 
232.23 	participant has not been sanctioned. In order to maintain eligibility for any of the hardship 
232.24 	extension categories a participant shall develop and comply with either an employment 
232.25 	plan or a family stabilization services plan, whichever is appropriate.
232.26 	(b) If one participant in a two-parent assistance unit is determined to be ineligible for 
232.27 	a hardship extension, the county shall give the assistance unit the option of disqualifying 
232.28 	the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a 
232.29 	one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using 
232.30 	the shared household standard under section 256J.08, subdivision 82a. 
232.31 	(c) Prior to denying an extension, the county must review the sanction status and 
232.32 	determine whether the sanction is appropriate or if good cause exists under section 256J.57. 
232.33 	If the sanction was inappropriately applied or the participant is granted a good cause 
232.34 	exception before the end of month 60, the participant shall be considered for an extension. 

232.35 	Sec. 9. Minnesota Statutes 2007 Supplement, section 256J.49, subdivision 13, is 
232.36 	amended to read:
233.1 		Subd. 13.Work activity. "Work activity" means any activity in a participant's 
233.2 	approved employment plan that leads to employment. For purposes of the MFIP program, 
233.3 	this includes activities that meet the definition of work activity under the participation 
233.4 	requirements of TANF. Work activity includes:
233.5 	(1) unsubsidized employment, including work study and paid apprenticeships or 
233.6 	internships;
233.7 	(2) subsidized private sector or public sector employment, including grant diversion 
233.8 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, 
233.9 	the self-employment investment demonstration program (SEID) as specified in section 
233.10 	256J.65, paid work experience, and supported work when a wage subsidy is provided; 
233.11 	(3) unpaid work experience, including community service, volunteer work, 
233.12 	the community work experience program as specified in section 256J.67, unpaid 
233.13 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
233.14 	Unpaid work experience is only an option if the participant has been unable to obtain or 
233.15 	maintain paid employment in the competitive labor market, and no paid work experience 
233.16 	programs are available to the participant performed in return for cash assistance is 
233.17 	prohibited and does not count as a work activity, unless the participant voluntarily agrees, 
233.18 	in writing, to engage in an unpaid work arrangement. The participant may terminate the 
233.19 	unpaid work arrangement, in writing, at any time. Unless If  a participant consents to 
233.20 	participating in unpaid work experience, the participant's employment plan may only 
233.21 	include unpaid work experience if including the unpaid work experience in the plan will 
233.22 	meet the following criteria:
233.23 	(i) the unpaid work experience will provide the participant specific skills or 
233.24 	experience that cannot be obtained through other work activity options where the 
233.25 	participant resides or is willing to reside; and 
233.26 	(ii) the skills or experience gained through the unpaid work experience will result 
233.27 	in higher wages for the participant than the participant could earn without the unpaid 
233.28 	work experience;
233.29 	(4) job search including job readiness assistance, job clubs, job placement, 
233.30 	job-related counseling, and job retention services;
233.31 	(5) job readiness education, including English as a second language (ESL) or 
233.32 	functional work literacy classes as limited by the provisions of section 256J.531, 
233.33 	subdivision 2, general educational development (GED) course work, high school 
233.34 	completion, and adult basic education as limited by the provisions of section 256J.531, 
233.35 	subdivision 1; 
234.1 	(6) job skills training directly related to employment, including education and 
234.2 	training that can reasonably be expected to lead to employment, as limited by the 
234.3 	provisions of section 256J.53; 
234.4 	(7) providing child care services to a participant who is working in a community 
234.5 	service program;
234.6 	(8) activities included in the employment plan that is developed under section 
234.7 	256J.521, subdivision 3; and 
234.8 	(9) preemployment activities including chemical and mental health assessments, 
234.9 	treatment, and services; learning disabilities services; child protective services; family 
234.10 	stabilization services; or other programs designed to enhance employability.

234.11 	Sec. 10. Minnesota Statutes 2006, section 256J.521, subdivision 4, is amended to read:
234.12 		Subd. 4.Self-employment. (a) Self-employment activities may be included in an 
234.13 	employment plan contingent on the development of a business plan which establishes a 
234.14 	timetable and earning goals that will result in the participant exiting MFIP assistance. 
234.15 	Business plans must be developed with assistance from an individual or organization with 
234.16 	expertise in small business as approved by the job counselor.
234.17 	(b) Participants with an approved plan that includes self-employment must meet 
234.18 	the participation requirements in section 256J.55, subdivision 1. Only hours where 
234.19 	the participant earns at least minimum wage shall be counted toward the requirement. 
234.20 	Additional activities and hours necessary to meet the participation requirements in section 
234.21 	256J.55, subdivision 1, must be included in the employment plan. 
234.22 	(c) Employment plans which include self-employment activities must be reviewed 
234.23 	every three months. Participants who fail, without good cause, to make satisfactory 
234.24 	progress as established in the business plan must revise the employment plan to replace 
234.25 	the self-employment with other approved work activities.
234.26 	(d) The requirements of this subdivision may be waived for participants who are 
234.27 	enrolled in the self-employment investment demonstration program (SEID) under section 
234.28 	256J.65, and who make satisfactory progress as determined by the job counselor and 
234.29 	the SEID provider.

234.30 	Sec. 11. Minnesota Statutes 2006, section 256J.54, subdivision 2, is amended to read:
234.31 		Subd. 2.Responsibility for assessment and employment plan. For caregivers 
234.32 	who are under age 18 without a high school diploma or its equivalent, the assessment 
234.33 	under subdivision 1 and the employment plan under subdivision 3 must be completed 
234.34 	by the social services agency under section 257.33. For caregivers who are age 18 or 
235.1 	19 without a high school diploma or its equivalent who choose to have an employment 
235.2 	plan with an education option under subdivision 3, the assessment under subdivision 1 
235.3 	and the employment plan under subdivision 3 must be completed by the job counselor 
235.4 	or, at county option, by the social services agency under section 257.33. Upon reaching 
235.5 	age 18 or 19 a caregiver who received social services under section 257.33 and is without 
235.6 	a high school diploma or its equivalent has the option to choose whether to continue 
235.7 	receiving services under the caregiver's plan from the social services agency or to utilize 
235.8 	an MFIP employment and training service provider. The social services agency or the job 
235.9 	counselor shall consult with representatives of educational agencies that are required to 
235.10 	assist in developing educational plans under section 124D.331 the participant's school in 
235.11 	developing the educational plan. 

235.12 	Sec. 12. Minnesota Statutes 2006, section 256J.54, subdivision 5, is amended to read:
235.13 		Subd. 5.School attendance required. (a) Notwithstanding the provisions of 
235.14 	section 256J.56, Minor parents, or 18- or 19-year-old parents without a high school 
235.15 	diploma or its equivalent who chooses an employment plan with an education option 
235.16 	must attend school unless: 
235.17 	(1) transportation services needed to enable the caregiver to attend school are not 
235.18 	available;
235.19 	(2) appropriate child care services needed to enable the caregiver to attend school 
235.20 	are not available;
235.21 	(3) the caregiver is ill or incapacitated seriously enough to prevent attendance at 
235.22 	school; or
235.23 	(4) the caregiver is needed in the home because of the illness or incapacity of 
235.24 	another member of the household. This includes a caregiver of a child who is younger 
235.25 	than six weeks of age.
235.26 	(b) The caregiver must be enrolled in a secondary school and meeting the school's 
235.27 	attendance requirements. The county, social service agency, or job counselor must verify 
235.28 	at least once per quarter that the caregiver is meeting the school's attendance requirements. 
235.29 	An enrolled caregiver is considered to be meeting the attendance requirements when the 
235.30 	school is not in regular session, including during holiday and summer breaks.

235.31 	Sec. 13. Minnesota Statutes 2006, section 256J.545, is amended to read:
235.32 	256J.545 FAMILY VIOLENCE WAIVER CRITERIA.
235.33 	(a) In order to qualify for a family violence waiver, an individual must provide 
235.34 	documentation of past or current family violence which may prevent the individual 
236.1 	from participating in certain employment activities. A claim of family violence must 
236.2 	be documented by the applicant or participant providing a sworn statement which is 
236.3 	supported by collateral documentation.
236.4 	(b) Collateral documentation may consist of The following items may be considered 
236.5 	acceptable documentation or verification of family violence:
236.6 	(1) police, government agency, or court records;
236.7 	(2) a statement from a battered women's shelter staff with knowledge of the 
236.8 	circumstances or credible evidence that supports the sworn statement;
236.9 	(3) a statement from a sexual assault or domestic violence advocate with knowledge 
236.10 	of the circumstances or credible evidence that supports the sworn statement; or
236.11 	(4) a statement from professionals from whom the applicant or recipient has sought 
236.12 	assistance for the abuse; or.
236.13 	(5) a sworn statement from any other individual with knowledge of circumstances or 
236.14 	credible evidence that supports the sworn statement.
236.15 	(c) A claim of family violence may also be documented by a sworn statement from 
236.16 	the applicant or participant and a sworn statement from any other person with knowledge 
236.17 	of the circumstances or credible evidence that supports the client's statement.

236.18 	Sec. 14. Minnesota Statutes 2007 Supplement, section 256J.621, is amended to read:
236.19 	256J.621 WORK PARTICIPATION BONUS CASH BENEFITS.
236.20 	(a) Effective October 1, 2009, upon exiting the diversionary work program (DWP) 
236.21 	or upon terminating  the Minnesota family investment program MFIP cash assistance with 
236.22 	earnings, a participant who is employed may be eligible for transitional assistancework 
236.23 	participation cash benefits of $75 per month to assist in meeting the family's basic needs 
236.24 	as the participant continues to move toward self-sufficiency.
236.25 	(b) To be eligible for a transitional assistance payment work participation cash 
236.26 	benefits, the participant shall not receive MFIP cash assistance or diversionary work 
236.27 	program assistance during the month and the participant or participants must meet the 
236.28 	following work requirements:
236.29 	(1) if the participant is a single caregiver and has a child under six years of age, the 
236.30 	participant must be employed at least 87 hours per month;
236.31 	(2) if the participant is a single caregiver and does not have a child under six years of 
236.32 	age, the participant must be employed at least 130 hours per month; or
236.33 	(3) if the household is a two-parent family, at least one of the parents must be 
236.34 	employed an average of at least 130 hours per month.
237.1 	Whenever a participant exits the diversionary work program or is terminated from 
237.2 	MFIP cash assistance and meets the other criteria in this section, transitional assistance is
237.3 	work participation cash benefits are available for up to 24 consecutive months.
237.4 	(c) Expenditures on the program are maintenance of effort state funds for participants 
237.5 	under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph 
237.6 	(b), clause (3), are nonmaintenance of effort funds. Months in which a participant receives 
237.7 	transitional assistancework participation cash benefits under this section do not count 
237.8 	toward the participant's MFIP 60-month time limit.

237.9 	Sec. 15. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 3, 
237.10 	is amended to read:
237.11 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
237.12 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
237.13 	percent of the federal poverty guideline for a family of the applicable size, are eligible for 
237.14 	services funded under the consolidated fund. Counties and tribes must give priority to 
237.15 	families currently receiving MFIP, the diversionary work program, or family stabilization 
237.16 	services, and families at risk of receiving MFIP or diversionary work program. A county 
237.17 	or tribe shall not impose a residency requirement on families, except for the residency 
237.18 	requirement under section 256J.12.

237.19 	Sec. 16. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 7, 
237.20 	is amended to read:
237.21 		Subd. 7.Performance base funds. (a) BeginningFor calendar year 2008 2009 
237.22 	and yearly thereafter, each county and tribe will be allocated 95 percent of their initial 
237.23 	calendar year allocation. Counties and tribes will be allocated additional funds based on 
237.24 	performance as follows:
237.25 	(1) for calendar year 2008 and yearly thereafter, a county or tribe that achieves a 
237.26 	50 percent MFIP TANF participation rate or a five percentage point improvement over 
237.27 	the previous year's MFIP TANF participation rate under section 256J.751, subdivision 2, 
237.28 	clause (7), as averaged across the four quarterly measurements 12 consecutive months for 
237.29 	the most recent year for which the measurements are available, will receive an additional 
237.30 	allocation equal to 2.5 percent of its initial allocation; and
237.31 	(2) for calendar years 2005 and thereafter, a county or tribe that performs above the 
237.32 	top of its annualized range of expected performance on the three-year self-support index 
237.33 	under section 256J.751, subdivision 2, clause (6), will receive an additional allocation 
237.34 	equal to five percent of its initial allocation; and
238.1 	(3) for calendar years 2005 and thereafter, a county or tribe that performs within or 
238.2 	above its range of expected performance on the annualized three-year self-support index 
238.3 	under section 256J.751, subdivision 2, clause (6), will receive an additional allocation 
238.4 	equal to 2.5 percent of its initial allocation; and
238.5 	(4) for calendar years 2008 and thereafter, (3) a county or tribe that does not achieve 
238.6 	a 50 percent MFIP TANF participation rate or a five percentage point improvement over 
238.7 	the previous year's MFIP TANF participation rate under section 256J.751, subdivision 2, 
238.8 	clause (7), as averaged across the four quarterly measurements 12 consecutive months
238.9 	for the most recent year for which the measurements are available, will not receive 
238.10 	an additional 2.5 percent of its initial allocation until after negotiating a multiyear 
238.11 	improvement plan with the commissioner; or 
238.12 	(5) for calendar years 2008 and thereafter, (4) a county or tribe that does not 
238.13 	perform within or above its range of expected performance on the annualized three-year 
238.14 	self-support index under section 256J.751, subdivision 2, clause (6), will not receive an 
238.15 	additional allocation equal to 2.5 percent of its initial allocation until after negotiating a 
238.16 	multiyear improvement plan with the commissioner.
238.17 	(b) For calendar year 2009 and yearly thereafter, performance-based funds for a 
238.18 	federally approved tribal TANF program in which the state and tribe have in place a 
238.19 	contract under section 256.01, addressing consolidated funding, will be allocated as 
238.20 	follows:
238.21 	(1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation 
238.22 	rate approved in its federal TANF plan using the average of four quarterly measurements
238.23 	12 consecutive months for the most recent year for which the measurements are available, 
238.24 	will receive an additional allocation equal to 2.5 percent of its initial allocation; and
238.25 	(2) for calendar years 2006 and thereafter, a tribe that performs above the top of its 
238.26 	annualized range of expected performance on the three-year self-support index under 
238.27 	section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal 
238.28 	to five percent of its initial allocation; or
238.29 	(3) for calendar years 2006 and thereafter, a tribe that performs within or above its 
238.30 	range of expected performance on the annualized three-year self-support index under 
238.31 	section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal 
238.32 	to 2.5 percent of its initial allocation; or 
238.33 	(4) for calendar year 2008 and yearly thereafter, (3) a tribe that does not achieve the 
238.34 	participation rate approved in its federal TANF plan using the average of four quarterly
238.35 	measurements 12 consecutive months for the most recent year for which the measurements 
239.1 	are available, will not receive an additional allocation equal to 2.5 percent of its initial 
239.2 	allocation until after negotiating a multiyear improvement plan with the commissioner; or 
239.3 	(5) for calendar year 2008 and yearly thereafter, (4) a tribe that does not perform 
239.4 	within or above its range of expected performance on the annualized three-year 
239.5 	self-support index under section 256J.751, subdivision 2, clause (6), will not receive an 
239.6 	additional allocation equal to 2.5 percent until after negotiating a multiyear improvement 
239.7 	plan with the commissioner.
239.8 	(c) Funds remaining unallocated after the performance-based allocations in 
239.9 	paragraph (a) are available to the commissioner for innovation projects under subdivision 
239.10 	5.
239.11 	(d) (1) If available funds are insufficient to meet county and tribal allocations 
239.12 	under paragraph (a), the commissioner may make available for allocation funds that are 
239.13 	unobligated and available from the innovation projects through the end of the current 
239.14 	biennium.
239.15 	(2) If after the application of clause (1) funds remain insufficient to meet county and 
239.16 	tribal allocations under paragraph (a), the commissioner must proportionally reduce the 
239.17 	allocation of each county and tribe with respect to their maximum allocation available 
239.18 	under paragraph (a).

239.19 	Sec. 17. Minnesota Statutes 2007 Supplement, section 256J.95, subdivision 3, is 
239.20 	amended to read:
239.21 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories 
239.22 	of family units listed below, all family units who apply for cash benefits and who 
239.23 	meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must 
239.24 	participate in the diversionary work program. Family units that are not eligible for the 
239.25 	diversionary work program include:
239.26 	(1) child only cases;
239.27 	(2) a single-parent family unit that includes a child under 12 weeks of age. A parent 
239.28 	is eligible for this exception once in a parent's lifetime and is not eligible if the parent 
239.29 	has already used the previously allowed child under age one exemption from MFIP 
239.30 	employment services;
239.31 	(3) a minor parent without a high school diploma or its equivalent;
239.32 	(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent 
239.33 	who chooses to have an employment plan with an education option;
239.34 	(5) a caregiver age 60 or over;
240.1 	(6) family units with a caregiver who received DWP benefits in the 12 months prior 
240.2 	to the month the family applied for DWP, except as provided in paragraph (c);
240.3 	(7) family units with a caregiver who received MFIP within the 12 months prior to 
240.4 	the month the family unit applied for DWP;
240.5 	(8) a family unit with a caregiver who received 60 or more months of TANF 
240.6 	assistance; 
240.7 	(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to 
240.8 	fraud; and
240.9 	(10) refugees and asylees as defined in Code of Federal Regulations, title 45, chapter 
240.10 	IV part 400, subpart d, section 444.43 400.43, who arrived in the United States in the 12 
240.11 	months prior to the date of application for family cash assistance.
240.12 	(b) A two-parent family must participate in DWP unless both caregivers meet the 
240.13 	criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 
240.14 	includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), or (9), or (10).
240.15 	(c) Once DWP eligibility is determined, the four months run consecutively. If a 
240.16 	participant leaves the program for any reason and reapplies during the four-month period, 
240.17 	the county must redetermine eligibility for DWP.

240.18 	Sec. 18. Minnesota Statutes 2006, section 518A.50, is amended to read:
240.19 	518A.50 PAYMENT TO PUBLIC AGENCY.
240.20 	(a) This section applies to all proceedings involving a support order, including, but 
240.21 	not limited to, a support order establishing an order for past support or reimbursement 
240.22 	of public assistance.
240.23 	(b) The court shall direct that all payments ordered for maintenance or support 
240.24 	be made to the public authority responsible for child support enforcement so long as 
240.25 	the obligee is receiving or has applied for public assistance, or has applied for child 
240.26 	support or maintenance collection services. Public authorities responsible for child 
240.27 	support enforcement may act on behalf of other public authorities responsible for child 
240.28 	support enforcement, including the authority to represent the legal interests of or execute 
240.29 	documents on behalf of the other public authority in connection with the establishment, 
240.30 	enforcement, and collection of child support, maintenance, or medical support, and 
240.31 	collection on judgments.
240.32 	(c) Payments made to the public authority other than payments under section 
240.33 	518A.53 must be credited as of the date the payment is received by the central collections 
240.34 	unit., except that payments made under section 518A.53 may be considered to have been 
240.35 	paid as of the date the obligor received the remainder of the income.
241.1 	(d) Monthly amounts received by the public agency responsible for child support 
241.2 	enforcement from the obligor that are greater than the monthly amount of public assistance 
241.3 	granted to the obligee must be remitted to the obligee.

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

241.5 	Sec. 19. Minnesota Statutes 2006, section 518A.53, subdivision 5, is amended to read:
241.6 		Subd. 5.Payor of funds responsibilities. (a) An order for or notice of withholding 
241.7 	is binding on a payor of funds upon receipt. Withholding must begin no later than the first 
241.8 	pay period that occurs after 14 days following the date of receipt of the order for or notice 
241.9 	of withholding. In the case of a financial institution, preauthorized transfers must occur in 
241.10 	accordance with a court-ordered payment schedule.
241.11 	(b) A payor of funds shall withhold from the income payable to the obligor the 
241.12 	amount specified in the order or notice of withholding and amounts specified under 
241.13 	subdivisions 6 and 9 and shall remit the amounts withheld to the public authority within 
241.14 	seven business days of the date the obligor is paid the remainder of the income. The payor 
241.15 	of funds shall include with the remittance the Social Security number of the obligor, the 
241.16 	case type indicator as provided by the public authority and the date the obligor is paid 
241.17 	the remainder of the income. The obligor is considered to have paid the amount withheld 
241.18 	as of the date the obligor received the remainder of the income. A payor of funds may 
241.19 	combine all amounts withheld from one pay period into one payment to each public 
241.20 	authority, but shall separately identify each obligor making payment.
241.21 	(c) A payor of funds shall not discharge, or refuse to hire, or otherwise discipline an 
241.22 	employee as a result of wage or salary withholding authorized by this section. A payor of 
241.23 	funds shall be liable to the obligee for any amounts required to be withheld. A payor of 
241.24 	funds that fails to withhold or transfer funds in accordance with this section is also liable 
241.25 	to the obligee for interest on the funds at the rate applicable to judgments under section 
241.26 	549.09, computed from the date the funds were required to be withheld or transferred. 
241.27 	A payor of funds is liable for reasonable attorney fees of the obligee or public authority 
241.28 	incurred in enforcing the liability under this paragraph. A payor of funds that has failed 
241.29 	to comply with the requirements of this section is subject to contempt sanctions under 
241.30 	section 518A.73. If the payor of funds is an employer or independent contractor and 
241.31 	violates this subdivision, a court may award the obligor twice the wages lost as a result 
241.32 	of this violation. If a court finds a payor of funds violated this subdivision, the court 
241.33 	shall impose a civil fine of not less than $500. The liabilities in this paragraph apply to 
241.34 	intentional noncompliance with this section. 
242.1 	(d) If a single employee is subject to multiple withholding orders or multiple notices 
242.2 	of withholding for the support of more than one child, the payor of funds shall comply 
242.3 	with all of the orders or notices to the extent that the total amount withheld from the 
242.4 	obligor's income does not exceed the limits imposed under the Consumer Credit Protection 
242.5 	Act, United States Code, title 15, section 1673(b), giving priority to amounts designated in 
242.6 	each order or notice as current support as follows:
242.7 	(1) if the total of the amounts designated in the orders for or notices of withholding 
242.8 	as current support exceeds the amount available for income withholding, the payor of 
242.9 	funds shall allocate to each order or notice an amount for current support equal to the 
242.10 	amount designated in that order or notice as current support, divided by the total of the 
242.11 	amounts designated in the orders or notices as current support, multiplied by the amount 
242.12 	of the income available for income withholding; and
242.13 	(2) if the total of the amounts designated in the orders for or notices of withholding 
242.14 	as current support does not exceed the amount available for income withholding, the 
242.15 	payor of funds shall pay the amounts designated as current support, and shall allocate to 
242.16 	each order or notice an amount for past due support, equal to the amount designated in 
242.17 	that order or notice as past due support, divided by the total of the amounts designated in 
242.18 	the orders or notices as past due support, multiplied by the amount of income remaining 
242.19 	available for income withholding after the payment of current support.
242.20 	(e) When an order for or notice of withholding is in effect and the obligor's 
242.21 	employment is terminated, the obligor and the payor of funds shall notify the public 
242.22 	authority of the termination within ten days of the termination date. The termination 
242.23 	notice shall include the obligor's home address and the name and address of the obligor's 
242.24 	new payor of funds, if known.
242.25 	(f) A payor of funds may deduct one dollar from the obligor's remaining salary for 
242.26 	each payment made pursuant to an order for or notice of withholding under this section to 
242.27 	cover the expenses of withholding.

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

242.29 	Sec. 20. Laws 2007, chapter 147, article 19, section 3, subdivision 4, is amended to 
242.30 	read:

242.31
242.32	Subd. 4. Children and Economic Assistance 
Grants
 					
242.33 	The amounts that may be spent from this 
242.34 	appropriation for each purpose are as follows: 

243.1	(a) MFIP/DWP Grants 

243.2	Appropriations by Fund 
	
243.3	General 
	62,069,000 
	62,405,000 
	
243.4	Federal TANF 
	75,904,000 
	80,841,000 

243.5	(b) Support Services Grants 

243.6	Appropriations by Fund 
	
243.7	General 
	8,715,000 
	8,715,000 
	
243.8	Federal TANF 
	113,429,000 
	115,902,000 
	
243.9 	TANF Prior Appropriation Cancellation.
243.10 	Notwithstanding Laws 2001, First Special 
243.11 	Session chapter 9, article 17, section 
243.12 	2, subdivision 11, paragraph (b), any 
243.13 	unexpended TANF funds appropriated to the 
243.14 	commissioner to contract with the Board of 
243.15 	Trustees of Minnesota State Colleges and 
243.16 	Universities, to provide tuition waivers to 
243.17 	employees of health care and human service 
243.18 	providers that are members of qualifying 
243.19 	consortia operating under Minnesota 
243.20 	Statutes, sections 116L.10 to 116L.15, must 
243.21 	cancel at the end of fiscal year 2007. 
243.22 	MFIP Pilot Program. Of the TANF 
243.23 	appropriation, $100,000 in fiscal year 2008 
243.24 	and $750,000 in fiscal year 2009 are for a 
243.25 	grant to the Stearns-Benton Employment and 
243.26 	Training Council for the Workforce U pilot 
243.27 	program. Base level funding for this program 
243.28 	shall be $750,000 in 2010 and $0 in 2011. 
243.29 	Supported Work. (1) Of the TANF 
243.30 	appropriation, $5,468,000 in fiscal year 2008 
243.31 	and $7,291,000 in fiscal year 2009 areis for 
243.32 	supported work for MFIP participants, to 
243.33 	be allocated to counties and tribes based on 
243.34 	the criteria under clauses (2) and (3), and is 
243.35 	available until expended. Paid transitional 
244.1 	work experience and other supported 
244.2 	employment under this rider provides 
244.3 	a continuum of employment assistance, 
244.4 	including outreach and recruitment, 
244.5 	program orientation and intake, testing and 
244.6 	assessment, job development and marketing, 
244.7 	preworksite training, supported worksite 
244.8 	experience, job coaching, and postplacement 
244.9 	follow-up, in addition to extensive case 
244.10 	management and referral services. * (The 
244.11 	preceding text "and $7,291,000 in fiscal 
244.12 	year 2009" was indicated as vetoed by the 
244.13 	governor.) 
244.14 	(2) A county or tribe is eligible to receive an 
244.15 	allocation under this rider if: 
244.16 	(i) the county or tribe is not meeting the 
244.17 	federal work participation rate; 
244.18 	(ii) the county or tribe has participants who 
244.19 	are required to perform work activities under 
244.20 	Minnesota Statutes, chapter 256J, but are not 
244.21 	meeting hourly work requirements; and 
244.22 	(iii) the county or tribe has assessed 
244.23 	participants who have completed six weeks 
244.24 	of job search or are required to perform 
244.25 	work activities and are not meeting the 
244.26 	hourly requirements, and the county or tribe 
244.27 	has determined that the participant would 
244.28 	benefit from working in a supported work 
244.29 	environment. 
244.30 	(3) A county or tribe may also be eligible for 
244.31 	funds in order to contract for supplemental 
244.32 	hours of paid work at the participant's child's 
244.33 	place of education, child care location, or the 
244.34 	child's physical or mental health treatment 
244.35 	facility or office. This grant to counties and 
245.1 	tribes is specifically for MFIP participants 
245.2 	who need to work up to five hours more 
245.3 	per week in order to meet the hourly work 
245.4 	requirement, and the participant's employer 
245.5 	cannot or will not offer more hours to the 
245.6 	participant. 
245.7 	Work Study. Of the TANF appropriation, 
245.8 	$750,000 each year are to the commissioner 
245.9 	to contract with the Minnesota Office of 
245.10 	Higher Education for the biennium beginning 
245.11 	July 1, 2007, for work study grants under 
245.12 	Minnesota Statutes, section 136A.233, 
245.13 	specifically for low-income individuals who 
245.14 	receive assistance under Minnesota Statutes, 
245.15 	chapter 256J, and for grants to opportunities 
245.16 	industrialization centers. * (The preceding 
245.17 	text beginning "Work Study. Of the TANF 
245.18 	appropriation," was indicated as vetoed by 
245.19 	the governor.) 
245.20 	Integrated Service Projects. $2,500,000 
245.21 	in fiscal year 2008 and $2,500,000 in fiscal 
245.22 	year 2009 are appropriated from the TANF 
245.23 	fund to the commissioner to continue to 
245.24 	fund the existing integrated services projects 
245.25 	for MFIP families, and if funding allows, 
245.26 	additional similar projects. 
245.27 	Base Adjustment. The TANF base for fiscal 
245.28 	year 2010 is $115,902,000 and for fiscal year 
245.29 	2011 is $115,152,000. 

245.30	(c) MFIP Child Care Assistance Grants 

245.31	General 
	74,654,000 
	71,951,000 

245.32
245.33	(d) Basic Sliding Fee Child Care Assistance 
Grants 

245.34	General 
	42,995,000 
	45,008,000 
	
246.1 	Base Adjustment. The general fund base 
246.2 	is $44,881,000 for fiscal year 2010 and 
246.3 	$44,852,000 for fiscal year 2011. 
246.4 	At-Home Infant Care Program. No 
246.5 	funding shall be allocated to or spent on 
246.6 	the at-home infant care program under 
246.7 	Minnesota Statutes, section 119B.035. 

246.8	(e) Child Care Development Grants 

246.9246.10
	General 
	4,390,000 
	6,390,000
6,140,000
	
246.11 	Prekindergarten Exploratory Projects. Of 
246.12 	the general fund appropriation, $2,000,000 
246.13 	the first year and $4,000,000 $3,750,000
246.14 	the second year are for grants to the city 
246.15 	of St. Paul, Hennepin County, and Blue 
246.16 	Earth County to establish scholarship 
246.17 	demonstration projects to be conducted 
246.18 	in partnership with the Minnesota Early 
246.19 	Learning Foundation to promote children's 
246.20 	school readiness. This appropriation is 
246.21 	available until June 30, 2009. 
246.22 	Child Care Services Grants. Of this 
246.23 	appropriation, $500,000 each year are for 
246.24 	the purpose of providing child care services 
246.25 	grants under Minnesota Statutes, section 
246.26 	119B.21, subdivision 5. This appropriation 
246.27 	is for the 2008-2009 biennium only, and does 
246.28 	not increase the base funding. 
246.29 	Early Childhood Professional 
246.30 	Development System. Of this appropriation, 
246.31 	$500,000 each year are for purposes of the 
246.32 	early childhood professional development 
246.33 	system, which increases the quality and 
246.34 	continuum of professional development 
246.35 	opportunities for child care practitioners. 
247.1 	This appropriation is for the 2008-2009 
247.2 	biennium only, and does not increase the 
247.3 	base funding. 
247.4 	Base Adjustment. The general fund base 
247.5 	is $1,515,000 for each of fiscal years 2010 
247.6 	and 2011. 

247.7	(f) Child Support Enforcement Grants 

247.8	General 
	11,038,000 
	3,705,000 
	
247.9 	Child Support Enforcement. $7,333,000 
247.10 	for fiscal year 2008 is to make grants to 
247.11 	counties for child support enforcement 
247.12 	programs to make up for the loss under the 
247.13 	2005 federal Deficit Reduction Act of federal 
247.14 	matching funds for federal incentive funds 
247.15 	passed on to the counties by the state. 
247.16 	This appropriation is available until June 30, 
247.17 	2009. 

247.18	(g) Children's Services Grants 

247.19	Appropriations by Fund 
	
247.20	General 
	63,647,000 
	71,147,000 
	
247.21	Health Care Access 
	250,000 
	-0- 
	
247.22	TANF 
	240,000 
	340,000 
	
247.23 	Grants for Programs Serving Young 
247.24 	Parents. Of the TANF fund appropriation, 
247.25 	$140,000 each year is for a grant to a program 
247.26 	or programs that provide comprehensive 
247.27 	services through a private, nonprofit agency 
247.28 	to young parents in Hennepin County who 
247.29 	have dropped out of school and are receiving 
247.30 	public assistance. The program administrator 
247.31 	shall report annually to the commissioner on 
247.32 	skills development, education, job training, 
247.33 	and job placement outcomes for program 
247.34 	participants. 
248.1 	County Allocations for Rate Increases.
248.2 	County Children and Community Services 
248.3 	Act allocations shall be increased by 
248.4 	$197,000 effective October 1, 2007, and 
248.5 	$696,000 effective October 1, 2008, to help 
248.6 	counties pay for the rate adjustments to 
248.7 	day training and habilitation providers for 
248.8 	participants paid by county social service 
248.9 	funds. Notwithstanding the provisions of 
248.10 	Minnesota Statutes, section 256M.40, the 
248.11 	allocation to a county shall be based on 
248.12 	the county's proportion of social services 
248.13 	spending for day training and habilitation 
248.14 	services as determined in the most recent 
248.15 	social services expenditure and grant 
248.16 	reconciliation report. 
248.17 	Privatized Adoption Grants. Federal 
248.18 	reimbursement for privatized adoption grant 
248.19 	and foster care recruitment grant expenditures 
248.20 	is appropriated to the commissioner for 
248.21 	adoption grants and foster care and adoption 
248.22 	administrative purposes. 
248.23 	Adoption Assistance Incentive Grants.
248.24 	Federal funds available during fiscal year 
248.25 	2008 and fiscal year 2009 for the adoption 
248.26 	incentive grants are appropriated to the 
248.27 	commissioner for these purposes. 
248.28 	Adoption Assistance and Relative Custody 
248.29 	Assistance. The commissioner may transfer 
248.30 	unencumbered appropriation balances for 
248.31 	adoption assistance and relative custody 
248.32 	assistance between fiscal years and between 
248.33 	programs. 
248.34 	Children's Mental Health Grants. Of the 
248.35 	general fund appropriation, $5,913,000 in 
249.1 	fiscal year 2008 and $6,825,000 in fiscal year 
249.2 	2009 are for children's mental health grants. 
249.3 	The purpose of these grants is to increase and 
249.4 	maintain the state's children's mental health 
249.5 	service capacity, especially for school-based 
249.6 	mental health services. The commissioner 
249.7 	shall require grantees to utilize all available 
249.8 	third party reimbursement sources as a 
249.9 	condition of using state grant funds. At 
249.10 	least 15 percent of these funds shall be 
249.11 	used to encourage efficiencies through early 
249.12 	intervention services. At least another 15 
249.13 	percent shall be used to provide respite care 
249.14 	services for children with severe emotional 
249.15 	disturbance at risk of out-of-home placement. 
249.16 	Mental Health Crisis Services. Of the 
249.17 	general fund appropriation, $2,528,000 in 
249.18 	fiscal year 2008 and $2,850,000 in fiscal year 
249.19 	2009 are for statewide funding of children's 
249.20 	mental health crisis services. Providers must 
249.21 	utilize all available funding streams. 
249.22 	Children's Mental Health Evidence-Based 
249.23 	and Best Practices. Of the general fund 
249.24 	appropriation, $375,000 in fiscal year 2008 
249.25 	and $750,000 in fiscal year 2009 are for 
249.26 	children's mental health evidence-based and 
249.27 	best practices including, but not limited 
249.28 	to: Adolescent Integrated Dual Diagnosis 
249.29 	Treatment services; school-based mental 
249.30 	health services; co-location of mental 
249.31 	health and physical health care, and; the 
249.32 	use of technological resources to better 
249.33 	inform diagnosis and development of 
249.34 	treatment plan development by mental 
249.35 	health professionals. The commissioner 
249.36 	shall require grantees to utilize all available 
250.1 	third-party reimbursement sources as a 
250.2 	condition of using state grant funds. 
250.3 	Culturally Specific Mental Health 
250.4 	Treatment Grants. Of the general fund 
250.5 	appropriation, $75,000 in fiscal year 2008 
250.6 	and $300,000 in fiscal year 2009 are for 
250.7 	children's mental health grants to support 
250.8 	increased availability of mental health 
250.9 	services for persons from cultural and 
250.10 	ethnic minorities within the state. The 
250.11 	commissioner shall use at least 20 percent 
250.12 	of these funds to help members of cultural 
250.13 	and ethnic minority communities to become 
250.14 	qualified mental health professionals and 
250.15 	practitioners. The commissioner shall assist 
250.16 	grantees to meet third-party credentialing 
250.17 	requirements and require them to utilize all 
250.18 	available third-party reimbursement sources 
250.19 	as a condition of using state grant funds. 
250.20 	Mental Health Services for Children with 
250.21 	Special Treatment Needs. Of the general 
250.22 	fund appropriation, $50,000 in fiscal year 
250.23 	2008 and $200,000 in fiscal year 2009 are 
250.24 	for children's mental health grants to support 
250.25 	increased availability of mental health 
250.26 	services for children with special treatment 
250.27 	needs. These shall include, but not be limited 
250.28 	to: victims of trauma, including children 
250.29 	subjected to abuse or neglect, veterans and 
250.30 	their families, and refugee populations; 
250.31 	persons with complex treatment needs, such 
250.32 	as eating disorders; and those with low 
250.33 	incidence disorders. 
250.34 	MFIP and Children's Mental Health 
250.35 	Pilot Project. Of the TANF appropriation, 
251.1 	$100,000 in fiscal year 2008 and $200,000 
251.2 	in fiscal year 2009 are to fund the MFIP 
251.3 	and children's mental health pilot project. 
251.4 	Of these amounts, up to $100,000 may be 
251.5 	expended on evaluation of this pilot. 
251.6 	Prenatal Alcohol or Drug Use. Of the 
251.7 	general fund appropriation, $75,000 each 
251.8 	year is to award grants beginning July 1, 
251.9 	2007, to programs that provide services 
251.10 	under Minnesota Statutes, section 254A.171, 
251.11 	in Pine, Kanabec, and Carlton Counties. This 
251.12 	appropriation shall become part of the base 
251.13 	appropriation. 
251.14 	Base Adjustment. The general fund base 
251.15 	is $62,572,000 in fiscal year 2010 and 
251.16 	$62,575,000 in fiscal year 2011. 

251.17	(h) Children and Community Services Grants 

251.18	General 
	101,369,000 
	69,208,000 
	
251.19 	Base Adjustment. The general fund base 
251.20 	is $69,274,000 in each of fiscal years 2010 
251.21 	and 2011. 
251.22 	Targeted Case Management Temporary 
251.23 	Funding. (a) Of the general fund 
251.24 	appropriation, $32,667,000 in fiscal year 
251.25 	2008 is transferred to the targeted case 
251.26 	management contingency reserve account in 
251.27 	the general fund to be allocated to counties 
251.28 	and tribes affected by reductions in targeted 
251.29 	case management federal Medicaid revenue 
251.30 	as a result of the provisions in the federal 
251.31 	Deficit Reduction Act of 2005, Public Law 
251.32 	109-171. 
251.33 	(b) Contingent upon (1) publication by the 
251.34 	federal Centers for Medicare and Medicaid 
252.1 	Services of final regulations implementing 
252.2 	the targeted case management provisions 
252.3 	of the federal Deficit Reduction Act of 
252.4 	2005, Public Law 109-171, or (2) the 
252.5 	issuance of a finding by the Centers for 
252.6 	Medicare and Medicaid Services of federal 
252.7 	Medicaid overpayments for targeted case 
252.8 	management expenditures, up to $32,667,000 
252.9 	is appropriated to the commissioner of human 
252.10 	services. Prior to distribution of funds, the 
252.11 	commissioner shall estimate and certify the 
252.12 	amount by which the federal regulations or 
252.13 	federal disallowance will reduce targeted 
252.14 	case management Medicaid revenue over the 
252.15 	2008-2009 biennium. 
252.16 	(c) Within 60 days of a contingency described 
252.17 	in paragraph (b), the commissioner shall 
252.18 	distribute the grants proportionate to each 
252.19 	affected county or tribe's targeted case 
252.20 	management federal earnings for calendar 
252.21 	year 2005, not to exceed the lower of (1) the 
252.22 	amount of the estimated reduction in federal 
252.23 	revenue or (2) $32,667,000. 
252.24 	(d) These funds are available in either year of 
252.25 	the biennium. Counties and tribes shall use 
252.26 	these funds to pay for social service-related 
252.27 	costs, but the funds are not subject to 
252.28 	provisions of the Children and Community 
252.29 	Services Act grant under Minnesota Statutes, 
252.30 	chapter 256M. 
252.31 	(e) This appropriation shall be available to 
252.32 	pay counties and tribes for expenses incurred 
252.33 	on or after July 1, 2007. The appropriation 
252.34 	shall be available until expended. 

252.35	(i) General Assistance Grants 

253.1	General 
	37,876,000 
	38,253,000 
	
253.2 	General Assistance Standard. The 
253.3 	commissioner shall set the monthly standard 
253.4 	of assistance for general assistance units 
253.5 	consisting of an adult recipient who is 
253.6 	childless and unmarried or living apart 
253.7 	from parents or a legal guardian at $203. 
253.8 	The commissioner may reduce this amount 
253.9 	according to Laws 1997, chapter 85, article 
253.10 	3, section 54. 
253.11 	Emergency General Assistance. The 
253.12 	amount appropriated for emergency general 
253.13 	assistance funds is limited to no more 
253.14 	than $7,889,812 in fiscal year 2008 and 
253.15 	$7,889,812 in fiscal year 2009. Funds 
253.16 	to counties must be allocated by the 
253.17 	commissioner using the allocation method 
253.18 	specified in Minnesota Statutes, section 
253.19 	256D.06. 

253.20	(j) Minnesota Supplemental Aid Grants 

253.21	General 
	30,505,000 
	30,812,000 
	
253.22 	Emergency Minnesota Supplemental 
253.23 	Aid Funds. The amount appropriated for 
253.24 	emergency Minnesota supplemental aid 
253.25 	funds is limited to no more than $1,100,000 
253.26 	in fiscal year 2008 and $1,100,000 in fiscal 
253.27 	year 2009. Funds to counties must be 
253.28 	allocated by the commissioner using the 
253.29 	allocation method specified in Minnesota 
253.30 	Statutes, section 256D.46. 

253.31	(k) Group Residential Housing Grants 

253.32	General 
	91,069,000 
	98,671,000 
	
253.33 	People Incorporated. Of the general fund 
253.34 	appropriation, $460,000 each year is to 
254.1 	augment community support and mental 
254.2 	health services provided to individuals 
254.3 	residing in facilities under Minnesota 
254.4 	Statutes, section 256I.05, subdivision 1m. 

254.5
254.6	(l) Other Children and Economic Assistance 
Grants 

254.7	General 
	20,183,000 
	16,333,000 
	
254.8	Federal TANF 
	1,500,000 
	1,500,000 
	
254.9 	Base Adjustment. The general fund base 
254.10 	shall be $16,033,000 in fiscal year 2010 and 
254.11 	$15,533,000 in fiscal year 2011. The TANF 
254.12 	base shall be $1,500,000 in fiscal year 2010 
254.13 	and $1,181,000 in fiscal year 2011. 
254.14 	Homeless and Runaway Youth. Of the 
254.15 	general fund appropriation, $500,000 each 
254.16 	year are for the Runaway and Homeless 
254.17 	Youth Act under Minnesota Statutes, section 
254.18 	256K.45. Funds shall be spent in each area 
254.19 	of the continuum of care to ensure that 
254.20 	programs are meeting the greatest need. This 
254.21 	is a onetime appropriation. 
254.22 	Long-Term Homelessness. Of the general 
254.23 	fund appropriation, $1,500,000 each year 
254.24 	are$2,000,000 in fiscal year 2008 is for 
254.25 	implementation of programs to address 
254.26 	long-term homelessness and is available in 
254.27 	either year of the biennium. This is a onetime 
254.28 	appropriation. 
254.29 	Minnesota Community Action Grants. (a) 
254.30 	Of the general fund appropriation, $250,000 
254.31 	each year is for the purposes of Minnesota 
254.32 	community action grants under Minnesota 
254.33 	Statutes, sections 256E.30 to 256E.32. This 
254.34 	is a onetime appropriation. 
255.1 	(b) Of the TANF appropriation, $1,500,000 
255.2 	each year is for community action agencies 
255.3 	for auto repairs, auto loans, and auto purchase 
255.4 	grants to individuals who are eligible to 
255.5 	receive benefits under Minnesota Statutes, 
255.6 	chapter 256J, or who have lost eligibility 
255.7 	for benefits under Minnesota Statutes, 
255.8 	chapter 256J, due to earnings in the prior 12 
255.9 	months. Base level funding for this activity 
255.10 	shall be $1,500,000 in fiscal year 2010 
255.11 	and $1,181,000 in fiscal year 2011. * (The 
255.12 	preceding text beginning "(b) Of the TANF 
255.13 	appropriation," was indicated as vetoed by 
255.14 	the governor.) 
255.15 	(c) Money appropriated under paragraphs (a) 
255.16 	and (b) that is not spent in the first year does 
255.17 	not cancel but is available for the second 
255.18 	year. 

255.19 	Sec. 21.  REPEALER.
 255.20 	Minnesota Statutes 2006, sections 256.741, subdivision 15; and 256J.24, subdivision 
255.21 	6, are repealed.

255.22 	ARTICLE 23
255.23 	CONTINUING CARE

255.24 	Section 1. Minnesota Statutes 2006, section 256B.0621, subdivision 2, is amended to 
255.25 	read:
255.26 		Subd. 2.Targeted case management; definitions. For purposes of subdivisions 3 
255.27 	to 10, the following terms have the meanings given them:
255.28 	(1) "home care service recipients" means those individuals receiving the following 
255.29 	services under sections 256B.0651 to 256B.0656: skilled nursing visits, home health aide 
255.30 	visits, private duty nursing, personal care assistants, or therapies provided through a 
255.31 	home health agency;
255.32 	(2) "home care targeted case management" means the provision of targeted case 
255.33 	management services for the purpose of assisting home care service recipients to gain 
255.34 	access to needed services and supports so that they may remain in the community;
256.1 	(3) "institutions" means hospitals, consistent with Code of Federal Regulations, title 
256.2 	42, section 440.10; regional treatment center inpatient services, consistent with section 
256.3 	245.474; nursing facilities; and intermediate care facilities for persons with developmental 
256.4 	disabilities;
256.5 	(4) "relocation targeted case management" includes the provision of both county 
256.6 	targeted case management and public or private vendor service coordination services 
256.7 	for the purpose of assisting recipients to gain access to needed services and supports if 
256.8 	they choose to move from an institution to the community. Relocation targeted case 
256.9 	management may be provided during the lesser of:
256.10 	(i) the last 180 consecutive days of an eligible recipient's institutional stay; or
256.11 	(ii) the limits and conditions which apply to federal Medicaid funding for this 
256.12 	service; and
256.13 	(5) "targeted case management" means case management services provided to help 
256.14 	recipients gain access to needed medical, social, educational, and other services and 
256.15 	supports.

256.16 	Sec. 2. Minnesota Statutes 2006, section 256B.0621, subdivision 6, is amended to read:
256.17 		Subd. 6.Eligible services. (a) Services eligible for medical assistance 
256.18 	reimbursement as targeted case management include:
256.19 	(1) assessment of the recipient's need for targeted case management services and 
256.20 	for persons choosing to relocate, the county must provide service coordination provider 
256.21 	options at the first contact and upon request;
256.22 	(2) development, completion, and regular review of a written individual service 
256.23 	plan, which is based upon the assessment of the recipient's needs and choices, and which 
256.24 	will ensure access to medical, social, educational, and other related services and supports;
256.25 	(3) routine contact or communication with the recipient, recipient's family, primary 
256.26 	caregiver, legal representative, substitute care provider, service providers, or other relevant 
256.27 	persons identified as necessary to the development or implementation of the goals of the 
256.28 	individual service plan;
256.29 	(4) coordinating referrals for, and the provision of, case management services for 
256.30 	the recipient with appropriate service providers, consistent with section 1902(a)(23) of 
256.31 	the Social Security Act;
256.32 	(5) coordinating and monitoring the overall service delivery and engaging in 
256.33 	advocacy as needed to ensure quality of services, appropriateness, and continued need;
256.34 	(6) completing and maintaining necessary documentation that supports and verifies 
256.35 	the activities in this subdivision;
257.1 	(7) assisting individuals in order to access needed services, including travel to 
257.2 	conduct a visit with the recipient or other relevant person necessary to develop or 
257.3 	implement the goals of the individual service plan; and
257.4 	(8) coordinating with the institution discharge planner in the 180-day period before 
257.5 	the recipient's discharge.
257.6 	(b) Relocation targeted county case management includes services under paragraph 
257.7 	(a), clauses (1), (2), and (4). Relocation service coordination includes services under 
257.8 	paragraph (a), clauses (3) and (5) to (8). Home care targeted case management includes 
257.9 	services under paragraph (a), clauses (1) to (8).

257.10 	Sec. 3. Minnesota Statutes 2006, section 256B.0621, subdivision 10, is amended to 
257.11 	read:
257.12 		Subd. 10.Payment rates. The commissioner shall set payment rates for targeted 
257.13 	case management under this subdivision. Case managers may bill according to the 
257.14 	following criteria:
257.15 	(1) for relocation targeted case management, case managers may bill for direct case 
257.16 	management activities, including face-to-face and telephone contacts, in the lesser of:
257.17 	(i) 180 days preceding an eligible recipient's discharge from an institution; or
257.18 	(ii) the limits and conditions which apply to federal Medicaid funding for this 
257.19 	service;
257.20 	(2) for home care targeted case management, case managers may bill for direct case 
257.21 	management activities, including face-to-face and telephone contacts; and
257.22 	(3) billings for targeted case management services under this subdivision shall not 
257.23 	duplicate payments made under other program authorities for the same purpose.

257.24 	Sec. 4. Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 20, 
257.25 	is amended to read:
257.26 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
257.27 	of the state agency, medical assistance covers case management services to persons with 
257.28 	serious and persistent mental illness and children with severe emotional disturbance. 
257.29 	Services provided under this section must meet the relevant standards in sections 245.461
257.30 	to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
257.31 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
257.32 	(b) Entities meeting program standards set out in rules governing family community 
257.33 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
257.34 	assistance reimbursement for case management services for children with severe 
258.1 	emotional disturbance when these services meet the program standards in Minnesota 
258.2 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
258.3 	(c) Medical assistance and MinnesotaCare payment for mental health case 
258.4 	management shall be made on a monthly basis. In order to receive payment for an eligible 
258.5 	child, the provider must document at least a face-to-face contact with the child, the child's 
258.6 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
258.7 	provider must document:
258.8 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
258.9 	(2) at least a telephone contact with the adult or the adult's legal representative and 
258.10 	document a face-to-face contact with the adult or the adult's legal representative within 
258.11 	the preceding two months.
258.12 	(d) Payment for mental health case management provided by county or state staff 
258.13 	shall be based on the monthly rate methodology under section 256B.094, subdivision 6, 
258.14 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
258.15 	within mental health, separate rates for children and adults. 
258.16 	(e) Payment for mental health case management provided by Indian health services 
258.17 	or by agencies operated by Indian tribes may be made according to this section or other 
258.18 	relevant federally approved rate setting methodology.
258.19 	(f) Payment for mental health case management provided by vendors who contract 
258.20 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
258.21 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
258.22 	service to other payers. If the service is provided by a team of contracted vendors, the 
258.23 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
258.24 	team shall determine how to distribute the rate among its members. No reimbursement 
258.25 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
258.26 	the county or tribe for advance funding provided by the county or tribe to the vendor.
258.27 	(g) If the service is provided by a team which includes contracted vendors, tribal 
258.28 	staff, and county or state staff, the costs for county or state staff participation in the team 
258.29 	shall be included in the rate for county-provided services. In this case, the contracted 
258.30 	vendor, the tribal agency, and the county may each receive separate payment for services 
258.31 	provided by each entity in the same month. In order to prevent duplication of services, 
258.32 	each entity must document, in the recipient's file, the need for team case management and 
258.33 	a description of the roles of the team members.
258.34 	(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs 
258.35 	for mental health case management shall be provided by the recipient's county of 
258.36 	responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal 
259.1 	funds or funds used to match other federal funds. If the service is provided by a tribal 
259.2 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this 
259.3 	service is paid by the state without a federal share through fee-for-service, 50 percent of 
259.4 	the cost shall be provided by the recipient's county of responsibility.
259.5 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical 
259.6 	assistance, general assistance medical care, and MinnesotaCare include mental health case 
259.7 	management. When the service is provided through prepaid capitation, the nonfederal 
259.8 	share is paid by the state and the county pays no share.
259.9 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
259.10 	provider that does not meet the reporting or other requirements of this section. The county 
259.11 	of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal 
259.12 	agency, is responsible for any federal disallowances. The county or tribe may share this 
259.13 	responsibility with its contracted vendors. 
259.14 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
259.15 	expenditures under this section to repay the special revenue maximization account under 
259.16 	section 256.01, subdivision 2, clause (15). The repayment is limited to: 
259.17 	(1) the costs of developing and implementing this section; and
259.18 	(2) programming the information systems.
259.19 	(l) Payments to counties and tribal agencies for case management expenditures 
259.20 	under this section shall only be made from federal earnings from services provided 
259.21 	under this section. When this service is paid by the state without a federal share through 
259.22 	fee-for-service, 50 percent of the cost shall be provided by the state. Payments to 
259.23 	county-contracted vendors shall include the federal earnings, the state share, and the 
259.24 	county share.
259.25 	(m) Case management services under this subdivision do not include therapy, 
259.26 	treatment, legal, or outreach services.
259.27 	(n) If the recipient is a resident of a nursing facility, intermediate care facility, or 
259.28 	hospital, and the recipient's institutional care is paid by medical assistance, payment for 
259.29 	case management services under this subdivision is limited to the lesser of:
259.30 	(1) the last 180 days of the recipient's residency in that facility and may not exceed 
259.31 	more than six months in a calendar year; or
259.32 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
259.33 	(o) Payment for case management services under this subdivision shall not duplicate 
259.34 	payments made under other program authorities for the same purpose.

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

260.10 	Sec. 6. Minnesota Statutes 2006, section 256B.0924, subdivision 4, is amended to read:
260.11 		Subd. 4.Targeted case management service activities. (a) For persons with 
260.12 	developmental disabilities, targeted case management services must meet the provisions 
260.13 	of section 256B.092. 
260.14 	(b) For persons not eligible as a person with a developmental disability, targeted 
260.15 	case management service activities include:
260.16 	(1) an assessment of the person's need for targeted case management services;
260.17 	(2) the development of a written personal service plan;
260.18 	(3) a regular review and revision of the written personal service plan with the 
260.19 	recipient and the recipient's legal representative, and others as identified by the recipient, 
260.20 	to ensure access to necessary services and supports identified in the plan;
260.21 	(4) effective communication with the recipient and the recipient's legal representative 
260.22 	and others identified by the recipient;
260.23 	(5) coordination of referrals for needed services with qualified providers;
260.24 	(6) coordination and monitoring of the overall service delivery to ensure the quality 
260.25 	and effectiveness of services;
260.26 	(7) assistance to the recipient and the recipient's legal representative to help make 
260.27 	an informed choice of services;
260.28 	(8) advocating on behalf of the recipient when service barriers are encountered or 
260.29 	referring the recipient and the recipient's legal representative to an independent advocate;
260.30 	(9) monitoring and evaluating services identified in the personal service plan to 
260.31 	ensure personal outcomes are met and to ensure satisfaction with services and service 
260.32 	delivery;
260.33 	(10) conducting face-to-face monitoring with the recipient at least twice a year;
260.34 	(11) completing and maintaining necessary documentation that supports and verifies 
260.35 	the activities in this section;
261.1 	(12) coordinating with the medical assistance facility discharge planner in the 
261.2 	180-day period prior to the recipient's discharge into the community; and
261.3 	(13) a personal service plan developed and reviewed at least annually with the 
261.4 	recipient and the recipient's legal representative. The personal service plan must be revised 
261.5 	when there is a change in the recipient's status. The personal service plan must identify:
261.6 	(i) the desired personal short and long-term outcomes;
261.7 	(ii) the recipient's preferences for services and supports, including development of 
261.8 	a person-centered plan if requested; and
261.9 	(iii) formal and informal services and supports based on areas of assessment, such 
261.10 	as: social, health, mental health, residence, family, educational and vocational, safety, 
261.11 	legal, self-determination, financial, and chemical health as determined by the recipient and 
261.12 	the recipient's legal representative and the recipient's support network.

261.13 	Sec. 7. Minnesota Statutes 2006, section 256B.0924, subdivision 6, is amended to read:
261.14 		Subd. 6.Payment for targeted case management. (a) Medical assistance and 
261.15 	MinnesotaCare payment for targeted case management shall be made on a monthly basis. 
261.16 	In order to receive payment for an eligible adult, the provider must document at least one 
261.17 	contact per month and not more than two consecutive months without a face-to-face 
261.18 	contact with the adult or the adult's legal representative, family, primary caregiver, or 
261.19 	other relevant persons identified as necessary to the development or implementation 
261.20 	of the goals of the personal service plan.
261.21 	(b) Payment for targeted case management provided by county staff under this 
261.22 	subdivision shall be based on the monthly rate methodology under section 256B.094, 
261.23 	subdivision 6, paragraph (b), calculated as one combined average rate together with 
261.24 	adult mental health case management under section 256B.0625, subdivision 20, except 
261.25 	for calendar year 2002. In calendar year 2002, the rate for case management under this 
261.26 	section shall be the same as the rate for adult mental health case management in effect 
261.27 	as of December 31, 2001. Billing and payment must identify the recipient's primary 
261.28 	population group to allow tracking of revenues. 
261.29 	(c) Payment for targeted case management provided by county-contracted vendors 
261.30 	shall be based on a monthly rate negotiated by the host county. The negotiated rate must 
261.31 	not exceed the rate charged by the vendor for the same service to other payers. If the 
261.32 	service is provided by a team of contracted vendors, the county may negotiate a team rate 
261.33 	with a vendor who is a member of the team. The team shall determine how to distribute 
261.34 	the rate among its members. No reimbursement received by contracted vendors shall be 
262.1 	returned to the county, except to reimburse the county for advance funding provided by 
262.2 	the county to the vendor.
262.3 	(d) If the service is provided by a team that includes contracted vendors and county 
262.4 	staff, the costs for county staff participation on the team shall be included in the rate for 
262.5 	county-provided services. In this case, the contracted vendor and the county may each 
262.6 	receive separate payment for services provided by each entity in the same month. In 
262.7 	order to prevent duplication of services, the county must document, in the recipient's file, 
262.8 	the need for team targeted case management and a description of the different roles of 
262.9 	the team members.
262.10 	(e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs 
262.11 	for targeted case management shall be provided by the recipient's county of responsibility, 
262.12 	as defined in sections 256G.01 to 256G.12, from sources other than federal funds or 
262.13 	funds used to match other federal funds. 
262.14 	(f) The commissioner may suspend, reduce, or terminate reimbursement to a 
262.15 	provider that does not meet the reporting or other requirements of this section. The county 
262.16 	of responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal 
262.17 	disallowances. The county may share this responsibility with its contracted vendors. 
262.18 	(g) The commissioner shall set aside five percent of the federal funds received under 
262.19 	this section for use in reimbursing the state for costs of developing and implementing 
262.20 	this section.
262.21 	(h) Payments to counties for targeted case management expenditures under this 
262.22 	section shall only be made from federal earnings from services provided under this 
262.23 	section. Payments to contracted vendors shall include both the federal earnings and the 
262.24 	county share.
262.25 	(i) Notwithstanding section 256B.041, county payments for the cost of case 
262.26 	management services provided by county staff shall not be made to the commissioner of 
262.27 	finance. For the purposes of targeted case management services provided by county staff 
262.28 	under this section, the centralized disbursement of payments to counties under section 
262.29 	256B.041 consists only of federal earnings from services provided under this section. 
262.30 	(j) If the recipient is a resident of a nursing facility, intermediate care facility, or 
262.31 	hospital, and the recipient's institutional care is paid by medical assistance, payment for 
262.32 	targeted case management services under this subdivision is limited to the lesser of:
262.33 	(1) the last 180 days of the recipient's residency in that facility and may not exceed 
262.34 	more than six months in a calendar year; or
262.35 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
263.1 	(k) Payment for targeted case management services under this subdivision shall not 
263.2 	duplicate payments made under other program authorities for the same purpose.
263.3 	(l) Any growth in targeted case management services and cost increases under this 
263.4 	section shall be the responsibility of the counties.

263.5 	Sec. 8. Minnesota Statutes 2006, section 256B.19, subdivision 1d, is amended to read:
263.6 		Subd. 1d.Portion of nonfederal share to be paid by certain counties. (a) 
263.7 	In addition to the percentage contribution paid by a county under subdivision 1, the 
263.8 	governmental units designated in this subdivision shall be responsible for an additional 
263.9 	portion of the nonfederal share of medical assistance cost. For purposes of this 
263.10 	subdivision, "designated governmental unit" means the counties of Becker, Beltrami, 
263.11 	Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, Pennington, Pipestone, Ramsey, St. 
263.12 	Louis, Steele, Todd, Traverse, and Wadena.
263.13 	(b) Beginning in 1994, each of the governmental units designated in this subdivision 
263.14 	shall transfer before noon on May 31 to the state Medicaid agency an amount equal to the 
263.15 	number of licensed beds in any nursing home owned and operated by the county on that 
263.16 	date, with the county named as licensee, multiplied by $5,723. If two or more counties own 
263.17 	and operate a nursing home, the payment shall be prorated. These sums shall be part of the 
263.18 	designated governmental unit's portion of the nonfederal share of medical assistance costs.
263.19 	(c) Beginning in 2002, in addition to any transfer under paragraph (b), each of the 
263.20 	governmental units designated in this subdivision shall transfer before noon on May 31 
263.21 	to the state Medicaid agency an amount equal to the number of licensed beds in any 
263.22 	nursing home owned and operated by the county on that date, with the county named as 
263.23 	licensee, multiplied by $10,784. The provisions of paragraph (b) apply to transfers under 
263.24 	this paragraph.
263.25 	(d) Beginning in 2003, in addition to any transfer under paragraphs (b) and (c), each 
263.26 	of the governmental units designated in this subdivision shall transfer before noon on May 
263.27 	31 to the state Medicaid agency an amount equal to the number of licensed beds in any 
263.28 	nursing home owned and operated by the county on that date, with the county named as 
263.29 	licensee, multiplied by $2,230. The provisions of paragraph (b) apply to transfers under 
263.30 	this paragraph.
263.31 	(e) (d) The commissioner may reduce the intergovernmental transfers under 
263.32 	paragraphs paragraph (c) and (d) based on the commissioner's determination of the 
263.33 	payment rate in section 256B.431, subdivision 23, paragraphs (c), and (d), and (e). Any 
263.34 	adjustments must be made on a per-bed basis and must result in an amount equivalent to 
264.1 	the total amount resulting from the rate adjustment in section 256B.431, subdivision 23, 
264.2 	paragraphs (c), and (d), and (e). 

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

264.4 	Sec. 9. Minnesota Statutes 2006, section 256B.431, subdivision 23, is amended to read:
264.5 		Subd. 23.County nursing home payment adjustments. (a) Beginning in 1994, 
264.6 	the commissioner shall pay a nursing home payment adjustment on May 31 after noon 
264.7 	to a county in which is located a nursing home that, on that date, was county-owned and 
264.8 	operated, with the county named as licensee by the commissioner of health, and had over 
264.9 	40 beds and medical assistance occupancy in excess of 50 percent during the reporting 
264.10 	year ending September 30, 1991. The adjustment shall be an amount equal to $16 per 
264.11 	calendar day multiplied by the number of beds licensed in the facility on that date.
264.12 	(b) Payments under paragraph (a) are excluded from medical assistance per diem 
264.13 	rate calculations. These payments are required notwithstanding any rule prohibiting 
264.14 	medical assistance payments from exceeding payments from private pay residents. A 
264.15 	facility receiving a payment under paragraph (a) may not increase charges to private pay 
264.16 	residents by an amount equivalent to the per diem amount payments under paragraph (a) 
264.17 	would equal if converted to a per diem.
264.18 	(c) Beginning in 2002, in addition to any payment under paragraph (a), the 
264.19 	commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in 
264.20 	an amount equal to $29.55 per calendar day multiplied by the number of beds licensed 
264.21 	in the facility on that date. The provisions of paragraphs (a) and (b) apply to payments 
264.22 	under this paragraph.
264.23 	(d) Beginning in 2003, in addition to any payment under paragraphs (a) and (c), the 
264.24 	commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in 
264.25 	an amount equal to $6.11 per calendar day multiplied by the number of beds licensed in 
264.26 	the facility on that date. The provisions of paragraphs (a) and (b) apply to payments 
264.27 	under this paragraph.
264.28 	(e) (d) The commissioner may reduce payments under paragraphs paragraph (c) and 
264.29 	(d) based on the commissioner's determination of Medicare upper payment limits. Any 
264.30 	adjustments must be proportional to adjustments made under section  256B.19, subdivision 
264.31 	1d, paragraph (e) (d). 

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

265.1 	Sec. 10. Minnesota Statutes 2007 Supplement, section 256B.5012, subdivision 7, 
265.2 	is amended to read:
265.3 		Subd. 7.ICF/MR rate increases effective October 1, 2007, and October 1, 2008.
 265.4 	(a) For the rate year beginning October 1, 2007, the commissioner shall make available 
265.5 	to each facility reimbursed under this section operating payment rate adjustments equal 
265.6 	to 2.0 percent of the operating payment rates in effect on September 30, 2007. For the 
265.7 	rate year beginning July October  1, 2008, the commissioner shall make available to each 
265.8 	facility reimbursed under this section operating payment rate adjustments equal to 2.0 
265.9 	percent of the operating payment rates in effect on June September  30, 2008. For each 
265.10 	facility, the commissioner shall make available an adjustment, based on occupied beds, 
265.11 	using the percentage specified in this paragraph multiplied by the total payment rate, 
265.12 	including the variable rate but excluding the property-related payment rate, in effect 
265.13 	on the preceding day. The total payment rate shall include the adjustment provided in 
265.14 	section 256B.501, subdivision 12. A facility whose payment rates are governed by closure 
265.15 	agreements, receivership agreements, or Minnesota Rules, part 9553.0075, is not eligible 
265.16 	for an adjustment otherwise granted under this subdivision.
265.17 	(b) Seventy-five percent of the money resulting from the rate adjustments under 
265.18 	paragraph (a) must be used for increases in compensation-related costs for employees 
265.19 	directly employed by the facility on or after the effective date of the rate adjustments, 
265.20 	except:
265.21 	(1) the administrator;
265.22 	(2) persons employed in the central office of a corporation that has an ownership 
265.23 	interest in the facility or exercises control over the facility; and 
265.24 	(3) persons paid by the facility under a management contract.
265.25 	(c) Two-thirds of the money available under paragraph (b) must be used for wage 
265.26 	increases for all employees directly employed by the facility on or after the effective 
265.27 	date of the rate adjustments, except those listed in paragraph (b), clauses (1) to (3). The 
265.28 	wage adjustment that employees receive under this paragraph must be paid as an equal 
265.29 	hourly percentage wage increase for all eligible employees. All wage increases under this 
265.30 	paragraph must be effective on the same date. Only costs associated with the portion of 
265.31 	the equal hourly percentage wage increase that goes to all employees shall qualify under 
265.32 	this paragraph. Costs associated with wage increases in excess of the amount of the equal 
265.33 	hourly percentage wage increase provided to all employees shall be allowed only for 
265.34 	meeting the requirements in paragraph (b). This paragraph shall not apply to employees 
265.35 	covered by a collective bargaining agreement.
265.36 	(d) The commissioner shall allow as compensation-related costs all costs for:
266.1 	(1) wages and salaries;
266.2 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
266.3 	compensation;
266.4 	(3) the employer's share of health and dental insurance, life insurance, disability 
266.5 	insurance, long-term care insurance, uniform allowance, and pensions; and
266.6 	(4) other benefits provided, subject to the approval of the commissioner.
266.7 	(e) The portion of the rate adjustments under paragraph (a) that is not subject to the 
266.8 	requirements in paragraphs (b) and (c) shall be provided to facilities effective October 
266.9 	1 of each year.
266.10 	(f) Facilities may apply for the portion of the rate adjustments under paragraph 
266.11 	(a) that is subject to the requirements in paragraphs (b) and (c). The application 
266.12 	must be submitted to the commissioner within six months of the effective date of the 
266.13 	rate adjustments, and the facility must provide additional information required by 
266.14 	the commissioner within nine months of the effective date of the rate adjustments. 
266.15 	The commissioner must respond to all applications within three weeks of receipt. 
266.16 	The commissioner may waive the deadlines in this paragraph under extraordinary 
266.17 	circumstances, to be determined at the sole discretion of the commissioner. The 
266.18 	application must contain:
266.19 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
266.20 	(b) and (c);
266.21 	(2) a detailed distribution plan specifying the allowable compensation-related and 
266.22 	wage increases the facility will implement to use the funds available in clause (1);
266.23 	(3) a description of how the facility will notify eligible employees of the contents of 
266.24 	the approved application, which must provide for giving each eligible employee a copy of 
266.25 	the approved application, excluding the information required in clause (1), or posting a 
266.26 	copy of the approved application, excluding the information required in clause (1), for 
266.27 	a period of at least six weeks in an area of the facility to which all eligible employees 
266.28 	have access; and
266.29 	(4) instructions for employees who believe they have not received the 
266.30 	compensation-related or wage increases specified in clause (2), as approved by the 
266.31 	commissioner, and which must include a mailing address, e-mail address, and the 
266.32 	telephone number that may be used by the employee to contact the commissioner or the 
266.33 	commissioner's representative.
266.34 	(g) The commissioner shall ensure that cost increases in distribution plans under 
266.35 	paragraph (f), clause (2), that may be included in approved applications, comply with 
266.36 	requirements in clauses (1) to (4):
267.1 	(1) costs to be incurred during the applicable rate year resulting from wage and 
267.2 	salary increases effective after October 1, 2006, and prior to the first day of the facility's 
267.3 	payroll period that includes October 1 of each year shall be allowed if they were not used 
267.4 	in the prior year's application and they meet the requirements of paragraphs (b) and (c);
267.5 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
267.6 	may be considered to be allowable wage increases, according to formulas that the 
267.7 	commissioner shall provide, where employee retention is above the average statewide 
267.8 	rate of retention of direct care employees;
267.9 	(3) the annualized amount of increases in costs for the employer's share of health 
267.10 	and dental insurance, life insurance, disability insurance, and workers' compensation shall 
267.11 	be allowable compensation-related increases if they are effective on or after April 1 of 
267.12 	the year in which the rate adjustments are effective and prior to April 1 of the following 
267.13 	year; and 
267.14 	(4) for facilities in which employees are represented by an exclusive bargaining 
267.15 	representative, the commissioner shall approve the application only upon receipt of a letter 
267.16 	of acceptance of the distribution plan, as regards members of the bargaining unit, signed 
267.17 	by the exclusive bargaining agent and dated after May 25, 2007. Upon receipt of the letter 
267.18 	of acceptance, the commissioner shall deem all requirements of this section as having 
267.19 	been met in regard to the members of the bargaining unit.
267.20 	(h) The commissioner shall review applications received under paragraph (f) and 
267.21 	shall provide the portion of the rate adjustments under paragraphs (b) and (c) if the 
267.22 	requirements of this subdivision have been met. The rate adjustments shall be effective 
267.23 	October 1 of each year. Notwithstanding paragraph (a), if the approved application 
267.24 	distributes less money than is available, the amount of the rate adjustment shall be reduced 
267.25 	so that the amount of money made available is equal to the amount to be distributed.

267.26 	Sec. 11. Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:
267.27 		Subd. 6.Service delivery. (a) Each demonstration provider shall be responsible for 
267.28 	the health care coordination for eligible individuals. Demonstration providers:
267.29 	(1) shall authorize and arrange for the provision of all needed health services 
267.30 	including but not limited to the full range of services listed in sections 256B.02, 
267.31 	subdivision 8, and 256B.0625 in order to ensure appropriate health care is delivered to 
267.32 	enrollees. Notwithstanding section 256B.0621, demonstration providers that provide 
267.33 	nursing home and community-based services under this section shall provide relocation 
267.34 	service coordination to enrolled persons age 65 and over; 
268.1 	(2) shall accept the prospective, per capita payment from the commissioner in return 
268.2 	for the provision of comprehensive and coordinated health care services for eligible 
268.3 	individuals enrolled in the program;
268.4 	(3) may contract with other health care and social service practitioners to provide 
268.5 	services to enrollees; and
268.6 	(4) shall institute recipient grievance procedures according to the method established 
268.7 	by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved 
268.8 	through this process shall be appealable to the commissioner as provided in subdivision 11.
268.9 	(b) Demonstration providers must comply with the standards for claims settlement 
268.10 	under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health 
268.11 	care and social service practitioners to provide services to enrollees. A demonstration 
268.12 	provider must pay a clean claim, as defined in Code of Federal Regulations, title 42, 
268.13 	section 447.45(b), within 30 business days of the date of acceptance of the claim. 

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

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

268.24 	Sec. 13. Minnesota Statutes 2006, section 256D.44, subdivision 5, is amended to read:
268.25 		Subd. 5.Special needs. In addition to the state standards of assistance established in 
268.26 	subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 
268.27 	Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
268.28 	center, or a group residential housing facility.
268.29 	(a) The county agency shall pay a monthly allowance for medically prescribed 
268.30 	diets if the cost of those additional dietary needs cannot be met through some other 
268.31 	maintenance benefit. The need for special diets or dietary items must be prescribed by 
268.32 	a licensed physician. Costs for special diets shall be determined as percentages of the 
268.33 	allotment for a one-person household under the thrifty food plan as defined by the United 
269.1 	States Department of Agriculture. The types of diets and the percentages of the thrifty 
269.2 	food plan that are covered are as follows:
269.3 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
269.4 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 
269.5 	of thrifty food plan;
269.6 	(3) controlled protein diet, less than 40 grams and requires special products, 125 
269.7 	percent of thrifty food plan;
269.8 	(4) low cholesterol diet, 25 percent of thrifty food plan;
269.9 	(5) high residue diet, 20 percent of thrifty food plan;
269.10 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
269.11 	(7) gluten-free diet, 25 percent of thrifty food plan;
269.12 	(8) lactose-free diet, 25 percent of thrifty food plan;
269.13 	(9) antidumping diet, 15 percent of thrifty food plan;
269.14 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
269.15 	(11) ketogenic diet, 25 percent of thrifty food plan.
269.16 	(b) Payment for nonrecurring special needs must be allowed for necessary home 
269.17 	repairs or necessary repairs or replacement of household furniture and appliances using 
269.18 	the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 
269.19 	as long as other funding sources are not available.
269.20 	(c) A fee for guardian or conservator service is allowed at a reasonable rate 
269.21 	negotiated by the county or approved by the court. This rate shall not exceed five percent 
269.22 	of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 
269.23 	guardian or conservator is a member of the county agency staff, no fee is allowed.
269.24 	(d) The county agency shall continue to pay a monthly allowance of $68 for 
269.25 	restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 
269.26 	1990, and who eats two or more meals in a restaurant daily. The allowance must continue 
269.27 	until the person has not received Minnesota supplemental aid for one full calendar month 
269.28 	or until the person's living arrangement changes and the person no longer meets the criteria 
269.29 	for the restaurant meal allowance, whichever occurs first.
269.30 	(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 
269.31 	is allowed for representative payee services provided by an agency that meets the 
269.32 	requirements under SSI regulations to charge a fee for representative payee services. This 
269.33 	special need is available to all recipients of Minnesota supplemental aid regardless of 
269.34 	their living arrangement.
269.35 	(f) (1) Notwithstanding the language in this subdivision, an amount equal to the 
269.36 	maximum allotment authorized by the federal Food Stamp Program for a single individual 
270.1 	which is in effect on the first day of January July of the previous each year will be added 
270.2 	to the standards of assistance established in subdivisions 1 to 4 for individuals adults
270.3 	under the age of 65 who qualify as shelter needy and are: (i) relocating from an institution, 
270.4 	or an adult mental health residential treatment program under section 256B.0622, and 
270.5 	who are shelter needy; (ii) self-directed supports option eligible as defined under section 
270.6 	256B.0657, subdivision 2; or (iii) home and community-based waiver recipients living in 
270.7 	their own home or rented or leased apartment which is not owned, operated, or controlled 
270.8 	by a provider of service not related by blood or marriage.
270.9 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 
270.10 	shelter needy benefit under this paragraph is considered a household of one. An eligible 
270.11 	individual who receives this benefit prior to age 65 may continue to receive the benefit 
270.12 	after the age of 65.
270.13 	(3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 
270.14 	exceed 40 percent of the assistance unit's gross income before the application of this 
270.15 	special needs standard. "Gross income" for the purposes of this section is the applicant's or 
270.16 	recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 
270.17 	in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 
270.18 	state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 
270.19 	considered shelter needy for purposes of this paragraph.

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

270.21 	Sec. 14. Laws 2006, chapter 282, article 20, section 37, as amended by Laws 2007, 
270.22 	chapter 147, article 7, section 69, is amended to read:
270.23 	Sec. 37. REPAYMENT DELAY.
 270.24 	(a) A county that overspent its allowed amounts in calendar year 2004 or 2005 under 
270.25 	the waivered services program for persons with developmental disabilities shall not be 
270.26 	required to pay back the amount of overspending by June 30, 2009. This section applies to 
270.27 	Fillmore, Steele, and St. Louis Counties.
270.28 	(b) Carver County is not required to pay back the amount of overspending under 
270.29 	the waivered services program for persons with developmental disabilities for calendar 
270.30 	years 2004 and 2005 until June 30, 2009. 

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

270.32 	Sec. 15. Laws 2007, chapter 147, article 7, section 71, is amended to read:
270.33 	Sec. 71. PROVIDER RATE INCREASES.
 271.1 	(a) The commissioner of human services shall increase allocations, reimbursement 
271.2 	rates, or rate limits, as applicable, by 2.0 percent beginning October 1, 2007, and by 2.0 
271.3 	percent beginning July October  1, 2008, effective for services rendered on or after those 
271.4 	dates. County contracts for services specified in this section must be amended to pass 
271.5 	through these rate adjustments within 60 days of the effective date of the increase and 
271.6 	must be retroactive from the effective date of the rate adjustment. 
271.7 	(b) The annual rate increases described in this section must be provided to: 
271.8 	(1) home and community-based waivered services for persons with developmental 
271.9 	disabilities or related conditions, including consumer-directed community supports, under 
271.10 	Minnesota Statutes, section 256B.501; 
271.11 	(2) home and community-based waivered services for the elderly, including 
271.12 	consumer-directed community supports, under Minnesota Statutes, section 256B.0915; 
271.13 	(3) waivered services under community alternatives for disabled individuals, 
271.14 	including consumer-directed community supports, under Minnesota Statutes, section 
271.15 	256B.49; 
271.16 	(4) community alternative care waivered services, including consumer-directed 
271.17 	community supports, under Minnesota Statutes, section 256B.49; 
271.18 	(5) traumatic brain injury waivered services, including consumer-directed 
271.19 	community supports, under Minnesota Statutes, section 256B.49; 
271.20 	(6) nursing services and home health services under Minnesota Statutes, section 
271.21 	256B.0625, subdivision 6a; 
271.22 	(7) personal care services and qualified professional supervision of personal care 
271.23 	services under Minnesota Statutes, section 256B.0625, subdivision 19a; 
271.24 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
271.25 	subdivision 7; 
271.26 	(9) day training and habilitation services for adults with developmental disabilities 
271.27 	or related conditions under Minnesota Statutes, sections 252.40 to 252.46, including the 
271.28 	additional cost of rate adjustments on day training and habilitation services, provided as a 
271.29 	social service under Minnesota Statutes, section 256M.60; 
271.30 	(10) alternative care services under Minnesota Statutes, section 256B.0913; 
271.31 	(11) adult residential program grants under Minnesota Statutes, section 245.73; 
271.32 	(12) children's community-based mental health services grants and adult community 
271.33 	support and case management services grants under Minnesota Rules, parts 9535.1700 
271.34 	to 9535.1760; 
271.35 	(13) the group residential housing supplementary service rate under Minnesota 
271.36 	Statutes, section 256I.05, subdivision 1a; 
272.1 	(14) adult mental health integrated fund grants under Minnesota Statutes, section 
272.2 	245.4661; 
272.3 	(15) semi-independent living services (SILS) under Minnesota Statutes, section 
272.4 	252.275, including SILS funding under county social services grants formerly funded 
272.5 	under Minnesota Statutes, chapter 256I; 
272.6 	(16) community support services for deaf and hard-of-hearing adults with mental 
272.7 	illness who use or wish to use sign language as their primary means of communication 
272.8 	under Minnesota Statutes, section 256.01, subdivision 2; and deaf and hard-of-hearing 
272.9 	grants under Minnesota Statutes, sections 256C.233 and 256C.25; Laws 1985, chapter 9, 
272.10 	article 1; and Laws 1997, First Special Session chapter 5, section 20; 
272.11 	(17) living skills training programs for persons with intractable epilepsy who need 
272.12 	assistance in the transition to independent living under Laws 1988, chapter 689; 
272.13 	(18) physical therapy services under sections 256B.0625, subdivision 8, and 
272.14 	256D.03, subdivision 4; 
272.15 	(19) occupational therapy services under sections 256B.0625, subdivision 8a, and 
272.16 	256D.03, subdivision 4; 
272.17 	(20) speech-language therapy services under section 256D.03, subdivision 4, and 
272.18 	Minnesota Rules, part 9505.0390; 
272.19 	(21) respiratory therapy services under section 256D.03, subdivision 4, and 
272.20 	Minnesota Rules, part 9505.0295; 
272.21 	(22) adult rehabilitative mental health services under section 256B.0623; 
272.22 	(23) children's therapeutic services and support services under section 256B.0943; 
272.23 	(24) tier I chemical health services under Minnesota Statutes, chapter 254B; 
272.24 	(25) consumer support grants under Minnesota Statutes, section 256.476; 
272.25 	(26) family support grants under Minnesota Statutes, section 252.32; 
272.26 	(27) grants for case management services to persons with HIV or AIDS under 
272.27 	Minnesota Statutes, section 256.01, subdivision 19; and 
272.28 	(28) aging grants under Minnesota Statutes, sections 256.975 to 256.977, 256B.0917, 
272.29 	and 256B.0928. 
272.30 	(c) For services funded through Minnesota disability health options, the rate 
272.31 	increases under this section apply to all medical assistance payments, including former 
272.32 	group residential housing supplementary rates under Minnesota Statutes, chapter 256I. 
272.33 	(d) The commissioner may recoup payments made under this section from a provider 
272.34 	that does not comply with paragraphs (f) and (g). 
273.1 	(e) A managed care plan receiving state payments for the services in this section 
273.2 	must include these increases in their payments to providers on a prospective basis, 
273.3 	effective on January 1 following the effective date of the rate increase. 
273.4 	(f) Providers that receive a rate increase under this section shall use 75 percent of 
273.5 	the additional revenue to increase compensation-related costs for employees directly 
273.6 	employed by the program on or after the effective date of the rate adjustments, except: 
273.7 	(1) the administrator; 
273.8 	(2) persons employed in the central office of a corporation or entity that has an 
273.9 	ownership interest in the provider or exercises control over the provider; and 
273.10 	(3) persons paid by the provider under a management contract. 
273.11 	Compensation-related costs include: wages and salaries; FICA taxes, Medicare taxes, 
273.12 	state and federal unemployment taxes, and workers' compensation; and the employer's 
273.13 	share of health and dental insurance, life insurance, disability insurance, long-term care 
273.14 	insurance, uniform allowance, and pensions. 
273.15 	(g) Two-thirds of the money available under paragraph (f) must be used for wage 
273.16 	increases for all employees directly employed by the provider on or after the effective 
273.17 	date of the rate adjustments, except those listed in paragraph (f), clauses (1) to (3). The 
273.18 	wage adjustment that employees receive under this paragraph must be paid as an equal 
273.19 	hourly percentage wage increase for all eligible employees. All wage increases under this 
273.20 	paragraph must be effective on the same date. This paragraph shall not apply to employees 
273.21 	covered by a collective bargaining agreement. 
273.22 	(h) For public employees, the increase for wages and benefits for certain staff is 
273.23 	available and pay rates must be increased only to the extent that they comply with laws 
273.24 	governing public employees collective bargaining. Money received by a provider for pay 
273.25 	increases under this section may be used only for increases implemented on or after the 
273.26 	first day of the rate period in which the increase is available and must not be used for 
273.27 	increases implemented prior to that date. 
273.28 	(i) The commissioner shall amend state grant contracts that include direct 
273.29 	personnel-related grant expenditures to include the allocation for the portion of the contract 
273.30 	that is employee compensation related. Grant contracts for compensation-related services 
273.31 	must be amended to pass through these adjustments within 60 days of the effective date of 
273.32 	the increase and must be retroactive to the effective date of the rate adjustment. 
273.33 	(j) The Board on Aging and its Area Agencies on Aging shall amend their 
273.34 	grants that include direct personnel-related grant expenditures to include the rate 
273.35 	adjustment for the portion of the grant that is employee compensation related. Grants 
273.36 	for compensation-related services must be amended to pass through these adjustments 
274.1 	within 60 days of the effective date of the increase and must be retroactive to the effective 
274.2 	date of the rate adjustment. 
274.3 	(k) The calendar year 2008 rate for vendors reimbursed under Minnesota Statutes, 
274.4 	chapter 254B, shall be at least 2.0 percent above the rate in effect on January 1, 2007. The 
274.5 	calendar year 2009 rate shall be at least 2.0 percent above the rate in effect on January 
274.6 	1, 2008. 
274.7 	(l) Providers that receive a rate adjustment under paragraph (a) that is subject to 
274.8 	paragraphs (f) and (g) shall provide to the commissioner, and those counties with whom 
274.9 	they have a contract, within six months after the effective date of each rate adjustment, a 
274.10 	letter, in a format specified by the commissioner, that provides assurances that the provider 
274.11 	has developed and implemented a compensation plan and complied with paragraphs (f) 
274.12 	and (g). The provider shall keep on file, and produce for the commissioner or county 
274.13 	upon request, its plan, which must specify: 
274.14 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
274.15 	(f) and (g); and 
274.16 	(2) a detailed distribution plan specifying the allowable compensation-related and 
274.17 	wage increases the provider will implement to use the funds available in clause (1). 
274.18 	(m) Within six months after the effective date of each rate adjustment, the provider 
274.19 	shall post this plan, excluding the information required in paragraph (l), clause (1), for 
274.20 	a period of at least six weeks in an area of the provider's operation to which all eligible 
274.21 	employees have access and provide instructions for employees who believe they have 
274.22 	not received the wage and other compensation-related increases specified in paragraph 
274.23 	(l), clause (2). Instructions must include a mailing address, e-mail address, and the 
274.24 	telephone number that may be used by the employee to contact the commissioner or the 
274.25 	commissioner's representative. Providers shall also make assurances to the commissioner 
274.26 	and counties with whom they have a contract that they have complied with the requirement 
274.27 	in this paragraph.

274.28 	ARTICLE 24
274.29 	HEALTH AND HUMAN SERVICES FORECAST ADJUSTMENTS

274.30
274.31	Section 1. SUMMARY OF APPROPRIATIONS; DEPARTMENT OF HUMAN 
SERVICES FORECAST ADJUSTMENT.
 	
274.32 	The dollar amounts shown are added to or, if shown in parentheses, are subtracted 
274.33 	from the appropriations in Laws 2007, chapter 147, from the general fund, or any other 
274.34 	fund named, to the Department of Human Services for the purposes specified in this 
274.35 	article, to be available for the fiscal year indicated for each purpose. The figure "2008" 
275.1 	used in this article means that the appropriation or appropriations listed are available for 
275.2 	the fiscal year ending June 30, 2008. The figure "2009" used in this article means that 
275.3 	the appropriation or appropriations listed are available for the fiscal year ending June 30, 
275.4 	2009. Supplemental appropriations and reductions to appropriations for the fiscal year 
275.5 	ending June 30, 2008, are effective the day following final enactment.

275.6					2008
		2009
	
275.7	General
			$
	6,739,000
	$
	52,350,000
	
275.8	Health Care Access
				(84,156,000)
		(96,019,000)
	
275.9	Federal TANF
				(28,427,000)
		(7,441,000)
	
275.10	Total
			$
	 (105,844,000)
	$
	(51,110,000)

275.11
275.12	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

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

275.14	Appropriations by Fund
	
275.15		2008
	2009
	
275.16	General
	6,739,000
	52,350,000
	
275.17	Health Care Access
	(84,156,000)
	(96,019,000)
	
275.18	Federal TANF
	(28,427,000)
	(7,441,000)

275.19	Subd. 2.Revenue and Pass-Through

275.20	Federal TANF
	1,187,000
	1,507,000

275.21
275.22	Subd. 3.Children and Economic Assistance 
Grants

275.23	General
	(4,960,000)
	5,925,000
	
275.24	Federal TANF
	(29,614,000)
	(8,948,000)
	
275.25 	The amounts that may be spent from this 
275.26 	appropriation for each purpose are as follows:

275.27	(a) MFIP/DWP Grants

275.28	General
	25,139,000
	11,665,000
	
275.29	Federal TANF
	(29,614,000)
	(8,948,000)

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

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

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

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

276.1	Subd. 4.Basic Health Care Grants

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

276.6	(a) MinnesotaCare

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

276.8
276.9	(b) MA Basic Health Care - Families and 
Children
		13,525,000
		7,005,000

276.10
276.11	(c) MA Basic Health Care - Elderly and 
Disabled
		(2,292,000)
		5,479,000

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

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

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

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

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

276.19 	ARTICLE 25
276.20 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

276.21	Section 1. SUMMARY OF APPROPRIATIONS.
 	
276.22 	The amounts shown in this section summarize direct appropriations by fund made 
276.23 	in this article.

276.24			2008
		2009
		Total
	
276.25	General
	$
	(33,304,000)
	$
	(155,632,000)
	$
	(188,936,000)
	
276.26
276.27	State Government Special 
Revenue
		114,000
		635,000
		749,000
	
276.28	Health Care Access
		-0-
		(3,641,000)
		(3,641,000)
	
276.29	Federal TANF
		16,434,000
		34,216,000
		50,650,000
	
276.30	Total
	$
	(16,756,000)
	$
	(124,422,000)
	$
	(141,178,000)

276.31	Sec. 2. APPROPRIATIONS.
 	
277.1 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
277.2 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 147, or other 
277.3 	law to the agencies and for the purposes specified in this article. The appropriations 
277.4 	are from the general fund, or another named fund, and are available for the fiscal years 
277.5 	indicated for each purpose. The figures "2008" and "2009" used in this article mean 
277.6 	that the addition or subtraction from appropriations listed under them are available for 
277.7 	the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is 
277.8 	fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 
277.9 	2008 and 2009. Supplemental appropriations and reductions for the fiscal year ending 
277.10 	June 30, 2008, are effective the day following final enactment.

277.11				APPROPRIATIONS
	
277.12				Available for the Year
	
277.13				Ending June 30
	
277.14					2008
		2009

277.15	Sec. 3. HUMAN SERVICES

277.16	Subdivision 1.Total Appropriation
 	$
	(16,870,000)
	$
	(121,748,000)

277.17	Appropriations by Fund
	
277.18		2008
	2009
	
277.19	General
	(33,304,000)
	(152,323,000)
	
277.20	Health Care Access
	-0-
	(3,641,000)
	
277.21	Federal TANF
	16,434,000
	34,216,000
	
277.22 	The appropriation additions or reductions 
277.23 	for each purpose are shown in the following 
277.24 	subdivisions.

277.25	Subd. 2.Agency Management

277.26	Financial Operations
		-0-
		(5,867,000)
	
277.27 	Base Adjustment. The general fund base 
277.28 	is increased $23,000 in fiscal year 2010 and 
277.29 	$26,000 in fiscal year 2011.

277.30
277.31	Subd. 3.Revenue and Pass-Through Revenue 
Expenditures

277.32	Federal TANF
		-0-
		975,000
	
277.33 	TANF Maintenance of Effort. (a) In order 
277.34 	to meet the basic MOE requirements of the 
277.35 	TANF block grant specified under Code 
278.1 	of Federal Regulations, title 45, section 
278.2 	263.1, the commissioner may only report 
278.3 	nonfederal money expended for allowable 
278.4 	activities listed in the following clauses as 
278.5 	TANF/MOE expenditures:
278.6 	(1) MFIP cash, diversionary work program, 
278.7 	and food assistance benefits under Minnesota 
278.8 	Statutes, chapter 256J;
278.9 	(2) the child care assistance programs 
278.10 	under Minnesota Statutes, sections 119B.03
278.11 	and 119B.05, and county child care 
278.12 	administrative costs under Minnesota 
278.13 	Statutes, section 119B.15;
278.14 	(3) state and county MFIP administrative 
278.15 	costs under Minnesota Statutes, chapters 
278.16 	256J and 256K;
278.17 	(4) state, county, and tribal MFIP 
278.18 	employment services under Minnesota 
278.19 	Statutes, chapters 256J and 256K;
278.20 	(5) expenditures made on behalf of 
278.21 	noncitizen MFIP recipients who qualify 
278.22 	for the medical assistance without federal 
278.23 	financial participation program under 
278.24 	Minnesota Statutes, section 256B.06, 
278.25 	subdivision 4, paragraphs (d), (e), and (j); 
278.26 	and
278.27 	(6) qualifying working family credit 
278.28 	expenditures under Minnesota Statutes, 
278.29 	section 290.0671.
278.30 	(b) The commissioner shall ensure that 
278.31 	sufficient qualified nonfederal expenditures 
278.32 	are made each year to meet the state's 
278.33 	TANF/MOE requirements. For the activities 
278.34 	listed in paragraph (a), clauses (2) to 
279.1 	(6), the commissioner may only report 
279.2 	expenditures that are excluded from the 
279.3 	definition of assistance under Code of 
279.4 	Federal Regulations, title 45, section 260.31.
279.5 	(c) The commissioner shall ensure that the 
279.6 	MOE used by the commissioner of finance 
279.7 	for the February and November forecasts 
279.8 	required under Minnesota Statutes, section 
279.9 	16A.103, contains expenditures under 
279.10 	paragraph (a), clause (1), equal to at least 16 
279.11 	percent of the total required under Code of 
279.12 	Federal Regulations, title 45, section 263.1.
279.13 	(d) Minnesota Statutes, section 256.011, 
279.14 	subdivision 3, which requires that federal 
279.15 	grants or aids secured or obtained under that 
279.16 	subdivision be used to reduce any direct 
279.17 	appropriations provided by law, does not 
279.18 	apply if the grants or aids are federal TANF 
279.19 	funds.
279.20 	(e) Beginning October 1, 2007, the 
279.21 	commissioner may not claim an amount 
279.22 	of TANF/MOE in excess of the 75 percent 
279.23 	standard in Code of Federal Regulations, title 
279.24 	45, section 263.1(a)(2), except:
279.25 	(1) to the extent necessary to meet the 
279.26 	80 percent standard in Code of Federal 
279.27 	Regulations, title 45, section 263.1(a)(1), if 
279.28 	it is determined by the commissioner that 
279.29 	the state would not meet the TANF work 
279.30 	participation rate for the current year;
279.31 	(2) any additional amounts under Code of 
279.32 	Federal Regulations, title 45, section 264.5, 
279.33 	that relate to replacement of TANF funds due 
279.34 	to the operation of TANF penalties; and
280.1 	(3) any additional amounts that may 
280.2 	contribute to avoiding or reducing TANF 
280.3 	work participation penalties through the 
280.4 	operation of the excess MOE provisions of 
280.5 	Code of Federal Regulations, title 45, section 
280.6 	261.43(a)(2).
280.7 	For the purposes of clauses (1) to (3), 
280.8 	the commissioner may supplement the 
280.9 	MOE claim with working family credit 
280.10 	expenditures or other qualified expenditures 
280.11 	to the extent the expenditures are otherwise 
280.12 	available after considering the expenditures 
280.13 	allowed in this section.
280.14 	(f) If allowable by the federal Office of 
280.15 	Family Assistance, the commissioner may 
280.16 	claim excess MOE with respect to federal 
280.17 	fiscal years 2006 and 2007 to the extent 
280.18 	that working family credit expenditures or 
280.19 	other qualified expenditures are otherwise 
280.20 	available to supplement the state's MOE 
280.21 	claim for those years after considering the 
280.22 	expenditures allowed in this section.
280.23 	(g) Notwithstanding any contrary provision 
280.24 	in this article, this rider expires June 30, 
280.25 	2011.
280.26 	Working Family Credit Expenditures as 
280.27 	TANF/MOE. The commissioner may claim 
280.28 	as TANF/MOE up to $6,707,000 per year 
280.29 	for fiscal year 2008 through fiscal year 2011. 
280.30 	Notwithstanding any contrary provision in 
280.31 	this article, this rider expires June 30, 2011.
280.32 	Additional Working Family Credit 
280.33 	Expenditures to be Claimed for 
280.34 	TANF/MOE. In addition to the amounts 
280.35 	provided in this section, the commissioner 
281.1 	may count the following amounts of working 
281.2 	family credit expenditure as TANF/MOE:
281.3 	(1) fiscal year 2008, $27,531,000;
281.4 	(2) fiscal year 2009, $51,214,000;
281.5 	(3) fiscal year 2010, $31,174,000; and
281.6 	(4) fiscal year 2011, $30,737,000.
281.7 	Notwithstanding any contrary provision in 
281.8 	this article, this rider expires June 30, 2011.

281.9281.10
	Subd. 4.Children and Economic Assistance 
Grants

281.11	(a) MFIP/DWP Grants

281.12	General
	(16,434,000)
	(25,268,000)
	
281.13	Federal TANF
	16,434,000
	24,450,000

281.14	(b) Support Services Grants; TANF
		-0-
		7,291,000
	
281.15 	Supported Work. (1) Of the TANF 
281.16 	appropriation, $7,291,000 in fiscal year 2009 
281.17 	is for supported work for MFIP participants, 
281.18 	to be allocated to counties and tribes based 
281.19 	on the criteria under clauses (1) and (2) and is 
281.20 	available until expended. This appropriation 
281.21 	shall become part of base level funding to the 
281.22 	commissioner for the biennium beginning 
281.23 	July 1, 2009. Paid transitional work 
281.24 	experience and other supported employment 
281.25 	under this clause shall provide a continuum of 
281.26 	employment assistance, including outreach 
281.27 	and recruitment, program orientation 
281.28 	and intake, testing and assessment, job 
281.29 	development and marketing, preworksite 
281.30 	training, supported worksite experience, job 
281.31 	coaching, and postplacement follow-up, in 
281.32 	addition to extensive case management and 
281.33 	referral services.
282.1 	(2) A county or tribe is eligible to receive an 
282.2 	allocation under clause (1) if:
282.3 	(i) the county or tribe is not meeting the 
282.4 	federal work participation rate;
282.5 	(ii) the county or tribe has participants who 
282.6 	are required to perform work activities under 
282.7 	Minnesota Statutes, chapter 256J, but are not 
282.8 	meeting hourly work requirements; and
282.9 	(iii) the county or tribe has assessed 
282.10 	participants who have completed six weeks 
282.11 	of job search or are required to perform 
282.12 	work activities and are not meeting the 
282.13 	hourly requirements, and the county or tribe 
282.14 	has determined that the participant would 
282.15 	benefit from working in a supported work 
282.16 	environment.
282.17 	(3) A county or tribe may also be eligible for 
282.18 	funds in order to contract for supplemental 
282.19 	hours of paid work at the participant's child's 
282.20 	place of education, child care location, or the 
282.21 	child's physical or mental health treatment 
282.22 	facility or office. Grants to counties and 
282.23 	tribes under this clause are specifically for 
282.24 	MFIP participants who need to work up 
282.25 	to five hours more per week in order to 
282.26 	meet the hourly work requirement, and the 
282.27 	participant's employer cannot or will not 
282.28 	offer more hours to the participant.

282.29
282.30	(c) Basic Sliding Fee Child Care Assistance 
Grants
		-0-
		(9,227,000)
	
282.31 	Child Care and Development Fund 
282.32 	Unexpended Balance. In addition to 
282.33 	the amount provided in this section, the 
282.34 	commissioner shall expend $9,227,000 
282.35 	in fiscal year 2009 from the federal child 
283.1 	care and development fund unexpended 
283.2 	balance for basic sliding fee child care under 
283.3 	Minnesota Statutes, section 119B.03. The 
283.4 	commissioner shall ensure that all child 
283.5 	care and development funds are expended 
283.6 	according to the federal child care and 
283.7 	development fund regulations.
283.8 	Basic Adjustment. The general fund base is 
283.9 	increased by $9,010,000 in fiscal year 2010.

283.10	(d) Child Care Development Grants
		(2,109,000)
		(109,000)
	
283.11 	Grants Reduction. Base level funding 
283.12 	for all nonforecast, general fund child 
283.13 	care development grants issued by the 
283.14 	commissioner shall be reduced by 1.7 
283.15 	percent, effective July 1, 2008. The 
283.16 	commissioner shall reduce all grants awards 
283.17 	affected by this paragraph by an equal 
283.18 	percentage.
283.19 	Basic Adjustment. The general fund base is 
283.20 	increased $2,083,000 in fiscal year 2010 and 
283.21 	$2,086,000 in fiscal year 2011.

283.22	(e) Children's Services Grants
		(311,000)
		(1,938,000)
	
283.23 	Base Adjustment. The general fund base is 
283.24 	increased $1,800,000 in fiscal year 2010 and 
283.25 	$1,800,000 in fiscal year 2011.
283.26 	Funding Usage. Up to 75 percent of the 
283.27 	fiscal year 2010 appropriation for children's 
283.28 	mental health screening grants may be used to 
283.29 	fund calendar year 2009 allocations for these 
283.30 	programs, with the resulting calendar year 
283.31 	funding pattern continuing into the future. 
283.32 	Notwithstanding any contrary provision of 
283.33 	this article, this paragraph shall not expire.
284.1 	Grants Reduction. Base level funding 
284.2 	for all nonforecast, general fund children's 
284.3 	services grants issued by the commissioner, 
284.4 	excluding children's mental health grants, 
284.5 	adoption assistance grants, and relative 
284.6 	custody assistance grants, shall be reduced 
284.7 	by 1.7 percent, effective July 1, 2008. The 
284.8 	commissioner shall reduce all grants awards 
284.9 	affected by this paragraph by an equal 
284.10 	percentage.

284.11	(f) Children and Community Services Grants
		-0-
		(1,276,000)
	
284.12 	Base Adjustment. The general fund base 
284.13 	is increased $98,000 in fiscal year 2010 and 
284.14 	$237,000 in fiscal year 2011.
284.15 	Grants Reduction. Base level funding 
284.16 	for all nonforecast, general fund children 
284.17 	and community services grants issued 
284.18 	by the commissioner shall be reduced by 
284.19 	1.7 percent, effective July 1, 2008. The 
284.20 	commissioner shall reduce all grants awards 
284.21 	affected by this paragraph by an equal 
284.22 	percentage.

284.23	(g) Minnesota Supplemental Aid Grants
		-0-
		201,000

284.24	(h) Group Residential Housing Grants
		-0-
		(133,000)

284.25
284.26	(i) Other Children's and Economic Assistance 
Grants

284.27	General
	-0-
	(277,000)
	
284.28	Federal TANF
	-0-
	1,500,000
	
284.29 	Grants Reduction. Base level funding for 
284.30 	all nonforecast, general fund other children's 
284.31 	and economic assistance grants issued 
284.32 	by the commissioner shall be reduced by 
284.33 	1.7 percent, effective July 1, 2008. The 
284.34 	commissioner shall reduce all grants awards 
285.1 	affected by this paragraph by an equal 
285.2 	percentage.
285.3 	Auto Repairs and Purchases.  Of the TANF 
285.4 	appropriation, $1,500,000 in fiscal year 
285.5 	2009 must be allocated to community action 
285.6 	agencies for auto repairs and auto purchase 
285.7 	grants to individuals who are eligible to 
285.8 	receive benefits under Minnesota Statutes, 
285.9 	chapter 256J, or who have lost eligibility 
285.10 	for benefits under Minnesota Statutes, 
285.11 	chapter 256J, due to earnings in the prior 
285.12 	12 months. Each community action agency 
285.13 	administering funds under this appropriation 
285.14 	shall provide a ten percent match using either 
285.15 	nonstate funds or in-kind services. This 
285.16 	appropriation shall become part of base level 
285.17 	funding for the biennium beginning July 1, 
285.18 	2009.
285.19 	Base Adjustment. The general fund base is 
285.20 	increased by $4,000 in fiscal year 2010 and 
285.21 	increased by $44,000 in fiscal year 2011.

285.22	Subd. 5.Basic Health Care Grants

285.23	(a) MinnesotaCare Grants

285.24	Health Care Access
		-0-
		(3,641,000)

285.25
285.26	(b) MA Basic Health Care Grants - Families 
and Children
		-0-
		(30,070,000)
	
285.27 	Hospital Payment Delay. Notwithstanding 
285.28 	Laws 2005, First Special Session chapter 4, 
285.29 	article 9, section 2, subdivision 6, payments 
285.30 	from the Medicaid Management Information 
285.31 	System that would otherwise have been made 
285.32 	for inpatient hospital services for medical 
285.33 	assistance enrollees are delayed as follows: 
285.34 	(1) for fiscal year 2008, June payments must 
285.35 	be included in the first payments in fiscal 
286.1 	year 2009; and (2) for fiscal year 2009, 
286.2 	June payments must be included in the first 
286.3 	payment of fiscal year 2010. The provisions 
286.4 	of Minnesota Statutes, section 16A.124, 
286.5 	do not apply to these delayed payments. 
286.6 	Notwithstanding any contrary provision in 
286.7 	this article, this paragraph expires on June 
286.8 	30, 2010.
286.9 	Third-Party Liability. (a) During the 
286.10 	fiscal year beginning July 1, 2008, the 
286.11 	commissioner shall initiate additional 
286.12 	activities to comply with United States 
286.13 	Code, title 42, section 1902(a)(25). These 
286.14 	activities may be conducted by agency staff 
286.15 	or through contracts that include provisions 
286.16 	to reimburse contractors on a contingency 
286.17 	basis. This initiative is expected to result in 
286.18 	new general fund revenues of $5,000,000 
286.19 	and new health care access fund revenues of 
286.20 	$1,000,000 for each fiscal year beginning on 
286.21 	or after July 1, 2008.
286.22 	(b) The commissioner shall report to the 
286.23 	chairs of the house of representatives Ways 
286.24 	and Means Committee and the senate Finance 
286.25 	Committee by March 1, 2009, regarding 
286.26 	the initiative in paragraph (a), including 
286.27 	steps taken to comply with federal law and 
286.28 	additional revenues generated.
286.29 	(c) Notwithstanding any contrary provision 
286.30 	in this article, this rider shall not expire.
286.31 	Fee-For-Service Payment Reductions. (a) 
286.32 	Effective for services rendered on or after 
286.33 	July 1, 2008, fee-for-service payment rates 
286.34 	for medical services provided under medical 
286.35 	assistance, general assistance medical care, 
287.1 	and MinnesotaCare must be reduced by three 
287.2 	percent.
287.3 	(b) The reductions in paragraph (a) do not 
287.4 	apply to nonprofessional services, including 
287.5 	medical supplies and transportation; 
287.6 	mental health services; dental services; and 
287.7 	pharmacy services.
287.8 	(c) Notwithstanding any contrary provision 
287.9 	in this article, this rider shall not expire.
287.10 	Administrative Costs. (a) For contracts 
287.11 	effective on or after January 1, 2009, the 
287.12 	commissioner shall limit administrative 
287.13 	costs paid to managed care plans under 
287.14 	Minnesota Statutes, section 256B.69, and 
287.15 	to county-based purchasing plans under 
287.16 	Minnesota Statutes, section 256B.692, to 
287.17 	an overall average of seven percent of 
287.18 	total contract payments under Minnesota 
287.19 	Statutes, sections 256B.69 and 256B.692, 
287.20 	for each calendar year. For purposes of this 
287.21 	paragraph, administrative costs includes 
287.22 	premium taxes paid under Minnesota 
287.23 	Statutes, section 297I.05, subdivision 5, and 
287.24 	provider surcharges paid under Minnesota 
287.25 	Statutes, section 256.9657, subdivision 3.
287.26 	(b) The commissioner may adjust the 
287.27 	administrative costs allowable under each 
287.28 	managed care contract and county-based 
287.29 	purchasing contract to ensure that 
287.30 	administrative spending remains within the 
287.31 	limits of paragraph (a).
287.32 	(c) Notwithstanding any contrary provision 
287.33 	of this article, this rider shall not expire.

287.34
287.35	(c) MA Basic Health Care Grants - Elderly and 
Disabled
		(14,028,000)
		(34,734,000)
	
288.1 	Minnesota Disability Health Options Rate 
288.2 	Setting Methodology. The commissioner 
288.3 	shall develop and implement a methodology 
288.4 	for risk adjusting payments for community 
288.5 	alternatives for disabled individuals 
288.6 	and traumatic brain injury home and 
288.7 	community-based waiver services delivered 
288.8 	under the Minnesota disability health options 
288.9 	program (MnDHO) effective January 1, 
288.10 	2009. The commissioner shall take into 
288.11 	account the weighting system used to 
288.12 	determine county waiver allocations in 
288.13 	developing the new payment methodology. 
288.14 	Growth in the number of enrollees receiving 
288.15 	community alternatives for disabled 
288.16 	individuals or traumatic brain injury waiver 
288.17 	payments through MnDHO is limited to an 
288.18 	increase of 200 enrollees in each calendar 
288.19 	year from January 2009 through December 
288.20 	2011. If those limits are reached, additional 
288.21 	members may be enrolled in MnDHO 
288.22 	for basic care services only as defined 
288.23 	in Minnesota Statutes, section 256B.69, 
288.24 	subdivision 28, and the commissioner may 
288.25 	establish a waiting list for future access of 
288.26 	MnDHO members to those waiver services. 

288.27	(d) General Assistance Medical Care Grants
		-0-
		(14,145,000)

288.28	(e) Other Health Care Grants
		-0-
		(15,000)
	
288.29 	MinnesotaCare Outreach Grants Special 
288.30 	Revenue Account. The balance in the 
288.31 	MinnesotaCare outreach grants special 
288.32 	revenue account at the close of fiscal year 
288.33 	2008, estimated to be $975,000, must be 
288.34 	transferred to the general fund.
289.1 	Grants Reduction. Base level funding for 
289.2 	all nonforecast, general fund other health 
289.3 	care grants issued by the commissioner must 
289.4 	be reduced by 1.7 percent, effective July 1, 
289.5 	2008. The commissioner shall reduce all 
289.6 	grants awards affected by this paragraph by 
289.7 	an equal percentage.
289.8 	Base Adjustment. The general fund base is 
289.9 	increased by $1,000 in fiscal year 2010 and 
289.10 	increased by $13,000 in fiscal year 2011.

289.11	Subd. 6.Continuing Care Grants

289.12	(a) Aging and Adult Services Grants
		-0-
		(322,000)
	
289.13 	Base Adjustment. The general fund base 
289.14 	is increased $71,000 in fiscal year 2010 and 
289.15 	$99,000 in fiscal year 2011.

289.16	(b) Alternative Care Grants
		-0-
		(198,000)
	
289.17 	Base Adjustment. The general fund base is 
289.18 	increased $198,000 in fiscal year 2010 and 
289.19 	$198,000 in fiscal year 2011.

289.20	(c) MA Long-Term Care Facilities Grants
		(2,306,000)
		(2,709,000)
	
289.21 	Long-Term Care Provider Rate 
289.22 	Adjustment Delay. Notwithstanding Laws 
289.23 	2007, chapter 147, article 7, sections 59 
289.24 	and 71, the long-term care provider rate 
289.25 	adjustment for July 1, 2008, is delayed until 
289.26 	October 1, 2008.

289.27
289.28	(d) MA Long-Term Care Waivers and Home 
Care Grants
		-0-
		(11,377,000)
	
289.29 	Personal Care Services. Payment rates 
289.30 	for personal care services under Minnesota 
289.31 	Statutes, section 256B.0625, subdivision 19a, 
289.32 	rendered by providers whose administrative 
289.33 	costs exceed 12 percent of the total payment 
289.34 	rate must be reduced by .96 percent, effective 
290.1 	for services delivered on or after July 1, 
290.2 	2008. Provider organizations shall reduce 
290.3 	administrative costs by an amount sufficient 
290.4 	to offset this reduction. Notwithstanding 
290.5 	any contrary provision in this article, this 
290.6 	paragraph shall not expire.
290.7 	Manage Growth in TBI and CADI Waiver.
290.8 	During the fiscal years beginning on July 
290.9 	1, 2008, July 1, 2009, and July 1, 2010, 
290.10 	the commissioner shall allocate money 
290.11 	for home and community-based programs 
290.12 	covered under Minnesota Statutes, section 
290.13 	256B.49, to ensure a reduction in state 
290.14 	spending that is equivalent to limiting the 
290.15 	caseload growth of the traumatic brain injury 
290.16 	(TBI) waiver to 200 allocations in each 
290.17 	year of the biennium and the community 
290.18 	alternatives for disabled individuals (CADI) 
290.19 	waiver to 1,500 allocations each year of the 
290.20 	biennium. Priorities for the allocation of 
290.21 	funds must be for individuals anticipated to 
290.22 	be discharged from institutional settings or 
290.23 	who are at imminent risk of a placement in 
290.24 	an institutional setting. Notwithstanding any 
290.25 	contrary section in this article, this provision 
290.26 	expires June 30, 2011.

290.27	(e) Mental Health Grants
		-0-
		(4,823,000)
	
290.28 	Base Adjustment. The general fund base is 
290.29 	increased $4,823,000 in fiscal year 2010 and 
290.30 	$4,823,000 in fiscal year 2011.
290.31 	Funding Usage. Up to 75 percent of the 
290.32 	fiscal year 2010 appropriation for  adult 
290.33 	mental health grants may be used to fund 
290.34 	calendar year 2009 allocations for these 
291.1 	programs, with the resulting calendar year 
291.2 	funding pattern continuing into the future.

291.3	(f) Deaf and Hard-of-Hearing Grants
		-0-
		(6,000)
	
291.4 	Base Adjustment. The general fund base 
291.5 	is increased $6,000 in fiscal year 2010 and 
291.6 	$6,000 in fiscal year 2011.

291.7	(g) Chemical Dependency Entitlement Grants
		-0-
		(566,000)
	
291.8 	Chemical Dependency Treatment Fund 
291.9 	Special Revenue Account.
291.10 	The lesser of the balance of the consolidated 
291.11 	chemical dependency treatment fund at the 
291.12 	close of fiscal year 2008 or $2,500,000 must 
291.13 	be transferred and deposited into the general 
291.14 	fund.

291.15
291.16	(h) Chemical Dependency Nonentitlement 
Grants
		-0-
		(31,000)
	
291.17 	Base Level Adjustment. The general 
291.18 	fund base for chemical dependency 
291.19 	nonentitlement treatment grants must be 
291.20 	increased by $313,000 for fiscal year 2010 
291.21 	and by $315,000 for fiscal year 2011.
291.22 	Grants Reduction. Base level funding 
291.23 	for all nonforecast, general fund chemical 
291.24 	dependency nonentitlement grants issued 
291.25 	by the commissioner must be reduced by 
291.26 	1.7 percent, effective July 1, 2008. The 
291.27 	commissioner shall reduce all grants awards 
291.28 	affected by this paragraph by an equal 
291.29 	percentage.

291.30	(i) Other Continuing Care Grants
		-0-
		(4,805,000)
	
291.31 	Base Level Adjustment. The general fund 
291.32 	base is increased $7,408,000 in fiscal year 
291.33 	2010 and $5,048,000 in fiscal year 2011.
292.1 	Housing Access Grants. Of the general 
292.2 	fund appropriation, $250,000 is appropriated 
292.3 	in fiscal year 2009 for housing access 
292.4 	grants under Minnesota Statutes, section 
292.5 	256B.0658.
292.6 	Funding Usage. Up to 75 percent of 
292.7 	the fiscal year 2010 appropriation for 
292.8 	developmental disability semi-independent 
292.9 	living services grants and developmental 
292.10 	disability family support grants may be used 
292.11 	to fund calendar year 2009 allocations for 
292.12 	these programs, with the resulting calendar 
292.13 	year funding pattern continuing into the 
292.14 	future.
292.15 	Grants Reduction. Base level funding for 
292.16 	all nonforecast, general fund other continuing 
292.17 	care grants issued by the commissioner must 
292.18 	be reduced by 1.7 percent, effective July 1, 
292.19 	2008. The commissioner shall reduce all 
292.20 	grants awards affected by this paragraph by 
292.21 	an equal percentage.

292.22	Subd. 7.State-Operated Services
 					
292.23 	County Past Due Receivables. The 
292.24 	commissioner is authorized to withhold 
292.25 	county federal administrative reimbursement 
292.26 	when the county of financial responsibility 
292.27 	for cost-of-care payments due to the state 
292.28 	under Minnesota Statutes, section 246.54 
292.29 	or 253B.045, is 90 days past due. The 
292.30 	commissioner shall deposit the withheld 
292.31 	federal administrative earnings for the county 
292.32 	into the general fund to settle the claims with 
292.33 	the county of financial responsibility. The 
292.34 	process for withholding funds is governed by 
292.35 	Minnesota Statutes, section 256.017.
293.1 	Internet-Based Resource.  Notwithstanding 
293.2 	Laws 2005, First Special Session chapter 4, 
293.3 	article 9, section 2, subdivision 10, base level 
293.4 	funding for the fiscal year beginning July 1, 
293.5 	2008, is zero for the evidence-based practice 
293.6 	for the treatment of methamphetamine 
293.7 	abuse at the state-operated services chemical 
293.8 	dependency program at Willmar. The 
293.9 	Internet-based resource developed as part 
293.10 	of the evidence-based practice must be 
293.11 	maintained by the commissioner. 
293.12 	Community Behavioral Health Hospitals.
293.13 	Under Minnesota Statutes, section 246.51, 
293.14 	subdivision 1, a determination order for 
293.15 	clients in the community behavioral hospital 
293.16 	operated by the commissioner is only 
293.17 	required when a client's third-party mental 
293.18 	health coverage has been exhausted.

293.19	(a) Mental Health Services
		(225,000)
		(300,000)

293.20	(b) Minnesota Sex Offender Services
		-0-
		(2,329,000)
	
293.21 	Sex Offender Program. Per diem payment 
293.22 	rates for the Minnesota sex offender program 
293.23 	under Minnesota Statutes, chapter 246B, 
293.24 	must be reduced by four percent, effective 
293.25 	July 1, 2008. This reduction does not apply 
293.26 	to rates related to treatment service costs.

293.27	Sec. 4. COMMISSIONER OF HEALTH

293.28	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(3,624,000)

293.29	Appropriations by Fund
	
293.30		2008
	2009
	
293.31	General
	-0-
	(4,059,000)
	
293.32
293.33	State Government 
Special Revenue
	-0-
	435,000
	
294.1 	The appropriation additions or reductions 
294.2 	for each purpose are shown in the following 
294.3 	subdivisions.

294.4	Subd. 2.Community and Family Health
 		-0-
		(776,000)
	
294.5 	Minnesota ENABL Program.
294.6 	Notwithstanding Laws 2007, chapter 
294.7 	147, article 19, section 4, subdivision 2, base 
294.8 	level funding for the Minnesota ENABL 
294.9 	program under Minnesota Statutes, section 
294.10 	145.9255, for the fiscal year beginning July 
294.11 	1, 2008, is zero.
294.12 	Grants Reduction. Base level funding for 
294.13 	all general fund community and family health 
294.14 	grants issued by the commissioner, excluding 
294.15 	positive abortion alternatives grants, must 
294.16 	be reduced by 1.7 percent, effective July 1, 
294.17 	2008. The commissioner shall reduce all 
294.18 	grants awards affected by this paragraph by 
294.19 	an equal percentage.
294.20 	Base Adjustment. The general fund base is 
294.21 	increased for both fiscal years 2010 and 2011.

294.22	Subd. 3.Policy, Quality, and Compliance

294.23	General 
	-0-
	(2,072,000)
	
294.24
294.25	State Government 
Special Revenue 
	-0-
	435,000
	
294.26 	Grants Reduction. Base level funding for all 
294.27 	general fund policy, quality, and compliance 
294.28 	grants issued by the commissioner, excluding 
294.29 	medical education and research costs 
294.30 	transition funding grants to the Mayo Clinic, 
294.31 	must be reduced by 1.7 percent, effective 
294.32 	July 1, 2008. The commissioner shall reduce 
294.33 	all grants awards affected by this paragraph 
294.34 	by an equal percentage.
295.1 	Base Adjustment. The general fund base is 
295.2 	increased in both fiscal years 2010 and 2011.

295.3	Subd. 4.Health Protection
 		-0-
		(38,000)
	
295.4 	Grants Reduction. Base level funding for 
295.5 	all general fund health protection grants 
295.6 	issued by the commissioner must be reduced 
295.7 	by 1.7 percent, effective July 1, 2008. The 
295.8 	commissioner shall reduce all grants awards 
295.9 	affected by this paragraph by an equal 
295.10 	percentage.

295.11	Subd. 5.Minority and Multicultural Health
 		-0-
		(73,000)
	
295.12 	Grants Reduction. Base level funding for 
295.13 	all general fund minority and multicultural 
295.14 	health grants issued by the commissioner 
295.15 	shall be reduced by 1.7 percent, effective 
295.16 	July 1, 2008. The commissioner shall reduce 
295.17 	all grants awards affected by this paragraph 
295.18 	by an equal percentage.

295.19	Subd. 6.Administrative Support Services
 		0
		(1,100,000)
	
295.20 	Base Adjustment. The general fund base is 
295.21 	increased $46,000 in fiscal years 2010 and 
295.22 	2011.
295.23 	Grants Reduction. Base level funding 
295.24 	for all general fund administrative support 
295.25 	services grants issued by the commissioner 
295.26 	must be reduced by 1.7 percent, effective 
295.27 	July 1, 2008. The commissioner shall reduce 
295.28 	all grants awards affected by this paragraph 
295.29 	by an equal percentage.

295.30	Sec. 5. VETERANS HOMES BOARD
 	$
	-0-
	$
	(1,000,000)

295.31	Sec. 6. HEALTH RELATED BOARDS

295.32	Subdivision 1.Total Appropriation 
 		2008
		2009

296.1	State Government Special Revenue
	$
	114,000
	$
	200,000
	
296.2 	Transfer from Special Revenue Fund.
296.3 	During the fiscal year beginning July 1, 2008, 
296.4 	the commissioner of finance shall transfer 
296.5 	$2,200,000 from the state government 
296.6 	special revenue fund to the general fund.

296.7
296.8	Subd. 2.Board of Nursing Home 
Administrators

296.9	State Government Special Revenue
		100,000
		200,000
	
296.10 	Administrative Services Unit. The amounts 
296.11 	appropriated are for the administrative 
296.12 	services unit to pay for costs of contested 
296.13 	case hearings and other unanticipated 
296.14 	costs of legal proceedings involving 
296.15 	health-related boards funded under Laws 
296.16 	2007, chapter 147, article 19, section 6. Upon 
296.17 	certification of a health-related board to the 
296.18 	administrative services unit that the costs 
296.19 	will be incurred and that there is insufficient 
296.20 	money available to pay for the costs out of 
296.21 	money currently available to that board, the 
296.22 	administrative services unit is authorized 
296.23 	to transfer money from this appropriation 
296.24 	to the board for payment of those costs 
296.25 	with the approval of the commissioner of 
296.26 	finance. This appropriation does not cancel. 
296.27 	Any unencumbered and unspent balances 
296.28 	remain available for these expenditures in 
296.29 	subsequent fiscal years.

296.30
296.31	Subd. 3.Board of Marriage and Family 
Therapy

296.32	State Government Special Revenue
		14,000
		-0-

296.33
296.34	Sec. 7. EMERGENCY MEDICAL SERVICES 
BOARD
 					
297.1 	Longevity Award and Incentive Program.
297.2 	In fiscal year 2009, $3,000,000 must be 
297.3 	transferred from the ambulance service 
297.4 	personnel longevity award and incentive 
297.5 	trust to the general fund.

297.6 	Sec. 8. Laws 2007, chapter 147, article 19, section 4, subdivision 3, is amended to read:

297.7	Subd. 3. Policy, Quality, and Compliance

297.8	Appropriations by Fund 
	
297.9	General 
	11,732,000 
	11,450,000 
	
297.10
297.11	State Government 
Special Revenue 
	13,451,000 
	13,597,000 
	
297.12	Health Care Access 
	10,748,000 
	10,049,000 
	
297.13 	Transformation Task Force. Of the health 
297.14 	care access fund appropriation, $170,000 the 
297.15 	first year is for the health care Transformation 
297.16 	Task Force. 
297.17 	Health Care Access Survey. Of the 
297.18 	health care access fund appropriation, 
297.19 	$600,000 in fiscal year 2008 is appropriated 
297.20 	to the commissioner to conduct a health 
297.21 	insurance survey of Minnesota households, 
297.22 	in partnership with the State Health Access 
297.23 	Data Assistance Center at the University 
297.24 	of Minnesota. The commissioner shall 
297.25 	contract with the State Health Access Data 
297.26 	Assistance Center to conduct a survey that 
297.27 	provides information on the characteristics 
297.28 	of the uninsured in Minnesota and the 
297.29 	reasons for changing patterns of insurance 
297.30 	coverage and access to health care services. 
297.31 	This appropriation shall become part of the 
297.32 	agency's base budget for even-numbered 
297.33 	fiscal years. 
297.34 	MERC Federal Compliance. Of the general 
297.35 	fund appropriation, $6,250,000 each the first
298.1 	year is and $4,250,000 the second year are to 
298.2 	the commissioner to distribute to the Mayo 
298.3 	Clinic for the purpose of providing transition 
298.4 	funding while federal compliance changes 
298.5 	are made to the medical education and 
298.6 	research cost funding distribution formula in 
298.7 	Minnesota Statutes, section 62J.692. 
298.8 	The base level funding for 2010 and 2011 
298.9 	is $2,000,000 $1,000,000 each year. This 
298.10 	funding shall not become part of the base in 
298.11 	2012 and 2013. 
298.12 	Notwithstanding any contrary provision of 
298.13 	this article, this rider expires June 30, 2012. 
298.14 	Health Information Technology. Of the 
298.15 	health care access fund appropriation; (1) 
298.16 	$3,500,000 each fiscal year is to implement 
298.17 	Minnesota Statutes, section 144.3345; (2) up 
298.18 	to $350,000 each fiscal year is available for 
298.19 	grant administration and health information 
298.20 	technology technical assistance; and (3) 
298.21 	$3,150,000 each year is to establish a 
298.22 	revolving loan account under Minnesota 
298.23 	Statutes, section 62J.496. This appropriation 
298.24 	shall not be included in the agency's base 
298.25 	budget for the fiscal year beginning July 1, 
298.26 	2009. 
298.27 	Uniform Electronic Transactions. Of 
298.28 	the health care access fund appropriation, 
298.29 	$146,000 in fiscal year 2008 is for 
298.30 	development of uniform electronic 
298.31 	transactions and implementation guide 
298.32 	standards under Minnesota Statutes, section 
298.33 	62J.536. Funding for the 2010-2011 
298.34 	biennium shall be from the general fund. 
299.1 	Federally Qualified Health Centers. Of the 
299.2 	general fund appropriation, $1,500,000 in 
299.3 	each fiscal year is for subsidies to federally 
299.4 	qualified health centers under Minnesota 
299.5 	Statutes, section 145.9269. 
299.6 	Community Collaboratives. Of the general 
299.7 	fund appropriation, $300,000 in fiscal 
299.8 	year 2008 is to provide planning grants 
299.9 	to community collaboratives to cover the 
299.10 	uninsured. This is a onetime appropriation. 
299.11 	Base Adjustment. The general fund base 
299.12 	is $7,346,000 in each of fiscal years 2010 
299.13 	and 2011. The health care access fund 
299.14 	base is $3,503,000 in fiscal year 2010 and 
299.15 	$2,903,000 in fiscal year 2011. The state 
299.16 	government special revenue fund base 
299.17 	is $14,015,000 in fiscal year 2010 and 
299.18 	$14,002,000 in fiscal year 2011. 

299.19 	Sec. 9. Laws 2007, chapter 147, article 19, section 5, is amended to read:

299.20
299.21	Sec. 5. VETERANS NURSING HOMES 
BOARD
 	$ 
	43,184,000 
	$ 
	45,206,000 
	
299.22 	Veterans Homes Special Revenue Account.
299.23 	The general fund  appropriations made to 
299.24 	the board may be transferred to a veterans 
299.25 	homes special revenue account in the 
299.26 	special revenue fund in the same manner 
299.27 	as other receipts are deposited according to 
299.28 	Minnesota Statutes, section 198.34, and are 
299.29 	appropriated to the board for the operation of 
299.30 	board facilities and programs. 
299.31 	Repair and Betterment. Of this 
299.32 	appropriation, $3,250,000 in fiscal year 2008 
299.33 	and $3,250,000 $2,250,000 in fiscal year 
299.34 	2009 are to be used for repair, maintenance, 
300.1 	rehabilitation, and betterment activities 
300.2 	at facilities statewide. This is a onetime 
300.3 	appropriation. 
300.4 	Base Adjustment. The general fund base is 
300.5 	$41,956,000 in each year of the fiscal 2010 
300.6 	and 2011 biennium. 
300.7 	Pay for Performance. (a) For fiscal year 
300.8 	2008, $50,000 shall be made available to 
300.9 	the board on January 1, 2009, only after 
300.10 	notification by the board to the commissioner 
300.11 	of finance and to the chairs of the relevant 
300.12 	house of representatives and senate finance 
300.13 	and policy committees that during the period 
300.14 	October 1, 2007, to September 30, 2008, the 
300.15 	Department of Health has not issued any 
300.16 	penalty assessments under the provisions 
300.17 	of Minnesota Statutes, section 144.653 or 
300.18 	144A.10, or any correction orders under the 
300.19 	provisions of Minnesota Statutes, section 
300.20 	144.653 or 144A.10, that the Department 
300.21 	of Health deems equivalent to findings of 
300.22 	either immediate jeopardy or substandard 
300.23 	quality of care, as defined in Code of Federal 
300.24 	Regulations, title 42, section 488.301. 
300.25 	(b) Regardless of whether this appropriation 
300.26 	is made available to the board, it shall be 
300.27 	part of base level funding for the biennium 
300.28 	beginning July 1, 2009.

300.29 	Sec. 10. SUNSET OF UNCODIFIED LANGUAGE.
 300.30 	All uncodified language contained in this article expires on June 30, 2009, unless a 
300.31 	different expiration date is specified.

300.32 	Sec. 11. EFFECTIVE DATE.
 300.33 	This article is effective July 1, 2008, unless a different date is specified.