1.1A bill for an act1.2relating to workforce development; reducing appropriations for higher education 1.3and economic development; modifying loan, grant, and scholarship provisions; 1.4increasing bond limits; establishing a central system office; governing credit 1.5transfers; requiring bond issues for projects; establishing a pilot project; 1.6modifying investment of mineral fund; making technical changes; renaming 1.7certain centers and funds; adjusting distributions; modifying certain Board 1.8of Barber Examiners provisions; adjusting fees; requiring reports;amending 1.9Minnesota Statutes 2008, sections 136A.121, subdivision 6; 136A.1701, 1.10subdivision 4; 136A.29, subdivision 9; 154.06; 154.065, subdivision 2; 154.07, 1.11by adding a subdivision; 154.15, by adding a subdivision; 326B.148, subdivision 1.121; Minnesota Statutes 2009 Supplement, sections 136A.121, subdivision 9; 1.13136F.98, subdivision 1; 154.002; 154.003; 155A.23, by adding a subdivision; 1.14155A.24, subdivision 2, by adding subdivisions; 155A.25; 298.294; 299A.45, 1.15subdivision 1; Laws 2009, chapter 78, article 1, section 3, subdivision 2; article 1.167, section 2; Laws 2009, chapter 95, article 1, sections 3, subdivisions 6, 1.1721; 5, subdivision 2; proposing coding for new law in Minnesota Statutes, 1.18chapters 136A; 136F; repealing Minnesota Statutes 2008, sections 136A.127, 1.19subdivisions 1, 3, 5, 6, 7, 10, 11; 154.07, subdivision 5; 176.135, subdivision 1b; 1.20Minnesota Statutes 2009 Supplement, sections 135A.61; 136A.121, subdivision 1.219b; 136A.127, subdivisions 2, 4, 9, 9b, 10a, 14.1.22BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.23ARTICLE 11.24HIGHER EDUCATION APPROPRIATIONS

1.25Section 1.  SUMMARY OF APPROPRIATIONS.

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

1.2820102011Total1.29General$1,410,000$(48,155,000)$(46,745,000)1.30Total$1,410,000$(48,155,000)$(46,745,000)

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

2.320102011Total2.42.5Minnesota Office of Higher Education$1,410,000$(1,568,000)$(158,000)2.62.72.8Board of Trustees of the Minnesota State Colleges and Universities-0-(10,467,000)(10,467,000)2.92.10Board of Regents of the University of Minnesota-0-(36,120,000)(36,120,000)2.11Total$1,410,000$(48,155,000)$(46,745,000)

2.12Sec. 2. APPROPRIATIONS.

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

2.22APPROPRIATIONS2.23Available for the Year2.24Ending June 302.2520102011

2.26Sec. 3. OFFICE OF HIGHER EDUCATION

2.27Subdivision 1.Total Appropriation$1,410,000$(1,568,000)

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

2.31Subd. 2.State Grants-0-(1,487,000)

2.32The tuition maximum for fiscal year 2011 2.33for students in two-year programs and for 2.34students in private, for-profit, four-year 2.35programs is $5,364.3.1Financial aid changes in this article are 3.2expected to achieve savings available to 3.3the state grant program for fiscal year 2011 3.4as a result of reducing tuition maximums, 3.5eliminating eligibility for a ninth semester, 3.6and eliminating the high school-to-college 3.7developmental transition program grants. 3.8Any additional savings necessary to make 3.9grants in fiscal year 2011 must be achieved 3.10through the application of Minnesota 3.11Statutes, section 136A.121, subdivision 7.3.12This is a onetime reduction.

3.13Subd. 3.Interstate Tuition Reciprocity1,487,000-0-

3.14Subd. 4.Agency Administration(77,000)(81,000)

3.153.163.17Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

3.18Subdivision 1.Total Appropriation$-0-$(10,467,000)

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

3.223.23Subd. 2.Central Office and Shared Services Unit-0-(3,000,000)

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

3.27Subd. 3.Operations and Maintenance-0-(7,467,000)

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

4.4Subd. 4.Cook County Higher Education

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

4.104.11Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

4.12Subdivision 1.Total Appropriation$-0-$(36,120,000)

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

4.16Subd. 2.Operations and Maintenance-0-(32,223,000)

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

4.31Subd. 3.Special Appropriations

4.32(a) Agriculture and Extension Service-0-(2,787,000)

4.33(b) Health Sciences-0-(281,000)

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

5.10(c) Institute of Technology-0-(74,000)

5.11(d) System Special-0-(328,000)

5.125.13(e) University of Minnesota and Mayo Foundation Partnership-0-(427,000)

5.14    Sec. 6. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:5.15    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of 5.16allowances specified in law for living and miscellaneous expenses, and an allowance 5.17for tuition and fees equal to the lesser of the average tuition and fees charged by the 5.18institution, or the tuition and fee maximums established in law, or for students in two-year 5.19or four-year private, for-profit programs, the maximum tuition and fee amount for a public 5.20two-year institution.5.21(b) For a student registering for less than full time, the office shall prorate the cost of 5.22attendance to the actual number of credits for which the student is enrolled.5.23(c) The recognized cost of attendance for a student who is confined to a Minnesota 5.24correctional institution shall consist of the tuition and fee component in paragraph (a), 5.25with no allowance for living and miscellaneous expenses.5.26(d) For the purpose of this subdivision, "fees" include only those fees that are 5.27mandatory and charged to full-time resident students attending the institution. Fees do 5.28not include charges for tools, equipment, computers, or other similar materials where the 5.29student retains ownership. Fees include charges for these materials if the institution retains 5.30ownership. Fees do not include optional or punitive fees.5.31EFFECTIVE DATE.This section is effective the day following final enactment.5.32    Sec. 7. Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9, is 5.33amended to read:6.1    Subd. 9. Awards. An undergraduate student who meets the office's requirements 6.2is eligible to apply for and receive a grant in any year of undergraduate study unless the 6.3student has obtained a baccalaureate degree or previously has been enrolled full time or 6.4the equivalent for nineeight semesters or the equivalent, excluding courses taken from a 6.5Minnesota school or postsecondary institution which is not participating in the state grant 6.6program and from which a student transferred no credit. A student who withdraws from 6.7enrollment for active military service, or for a major illness, while under the care of a 6.8medical professional, that substantially limits the student's ability to complete the term is 6.9entitled to an additional semester or the equivalent of grant eligibility. A student enrolled 6.10in a two-year program at a four-year institution is only eligible for the tuition and fee 6.11maximums established by law for two-year institutions.6.12EFFECTIVE DATE.This section is effective the day following final enactment.6.13    Sec. 8. [136A.129] LEGISLATIVE NOTICE.6.14The office shall notify the chairs of the legislative committees with primary 6.15jurisdiction over higher education finance of any proposed material change to the 6.16administration of any of the grant or financial aid programs in sections 136A.095 to 6.17136A.128.6.18    Sec. 9. Minnesota Statutes 2008, section 136A.1701, subdivision 4, is amended to read:6.19    Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such 6.20terms and conditions as the office may prescribe. The Under the SELF IV program, the6.21principal amount of a loan to an undergraduate student for a single academic year shall 6.22not exceed $6,000 for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007. 6.23Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not 6.24exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed 6.25$7,500 effective July 1, 2006 $7,500 per grade level. The aggregate principal amount of 6.26all loans made under this section to an undergraduate student shall not exceed  $34,500 6.27through June 30, 2007, and $37,500 after June 30, 2007. The principal amount of a loan 6.28to a graduate student for a single academic year shall not exceed $9,000. The aggregate 6.29principal amount of all loans made under this section to a student as  an undergraduate 6.30and graduate student shall not exceed $52,500 through June 30, 2007, and $55,5006.31after June 30, 2007. The amount of the loan may not exceed the cost of attendance less 6.32all other financial aid, including PLUS loans or other similar parent loans borrowed on 6.33the student's behalf. The cumulative SELF loan debt must not exceed the borrowing 6.34maximums in paragraph (b).7.1(b) The cumulative undergraduate borrowing maximums for SELF IV loans are:7.2(1) effective July 1, 2006, through June 30, 2007:7.3(i) grade level 1, $6,000;7.4(ii) grade level 2, $12,000;7.5(iii) grade level 3, $19,500;7.6(iv) grade level 4, $27,000; and7.7(v) grade level 5, $34,500; and7.8(2) effective July 1, 2007:7.9(i) grade level 1, $7,500;7.10(ii)(2) grade level 2, $15,000;7.11(iii)(3) grade level 3, $22,500;7.12(iv)(4) grade level 4, $30,000; and7.13(v)(5) grade level 5, $37,500.7.14(c) The principal amount of a SELF V or subsequent phase loan to students enrolled 7.15in a bachelor's degree program, postbaccalaureate, or graduate program must not exceed 7.16$10,000 per grade level. For all other eligible students, the principal amount of the loan 7.17must not exceed $7,500 per grade level. The aggregate principal amount of all loans 7.18made under this section to a student as an undergraduate and graduate student must not 7.19exceed $70,000. The amount of the loan must not exceed the cost of attendance less 7.20all other financial aid, including PLUS loans or other similar parent loans borrowed on 7.21the student's behalf. The cumulative SELF loan debt must not exceed the borrowing 7.22maximums in paragraph (d).7.23(d)(1) The cumulative borrowing maximums for SELF V loans and subsequent 7.24phases for students enrolled in a bachelor's degree program or postbaccalaureate program 7.25are:7.26(i) grade level 1, $10,000;7.27(ii) grade level 2, $20,000;7.28(iii) grade level 3, $30,000;7.29(iv) grade level 4, $40,000; and7.30(v) grade level 5, $50,000.7.31(2) For graduate level students, the borrowing limit is $10,000 per nine-month 7.32academic year, with a cumulative maximum for all SELF loan debt of $70,000.7.33(3) For all other eligible students, the cumulative borrowing maximums for SELF V 7.34loans and subsequent phases are:7.35(i) grade level 1, $7,500;7.36(ii) grade level 2, $15,000;8.1(iii) grade level 3, $22,500;8.2(iv) grade level 4, $30,000; and8.3(v) grade level 5, $37,500.8.4    Sec. 10. Minnesota Statutes 2008, section 136A.29, subdivision 9, is amended to read:8.5    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 8.6to issue revenue bonds whose aggregate principal amount at any time shall not exceed 8.7$950,000,000$1,300,000,000 and to issue notes, bond anticipation notes, and revenue 8.8refunding bonds of the authority under the provisions of sections 
         136A.25 to 
         136A.42, 8.9to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 8.10renovating, improving, furnishing, or equipping one or more projects or parts thereof. 8.11EFFECTIVE DATE.This section is effective the day following final enactment.8.12    Sec. 11. [136F.08] CENTRAL SYSTEM OFFICE.8.13    Subdivision 1.Establishment.A central system office is established for the 8.14Minnesota State Colleges and Universities to provide central support to the institutions 8.15enrolling students and to assist the board in fulfilling its missions under section 136F.05. 8.16The central office must not assume responsibility for services that are most effectively 8.17and efficiently provided at the institution level. The central system office is under the 8.18direction of the chancellor.8.19    Subd. 2.General duties.The central system office must coordinate system level 8.20responsibilities for financial management, personnel management, facilities management, 8.21information technology, credit transfer, legal affairs, government relations, and auditing. 8.22The central system office shall coordinate its services with the services provided at the 8.23institution level so as not to duplicate any functions that are provided by institutions.8.24    Sec. 12. [136F.302] CREDIT TRANSFER.8.25The board of trustees must develop and maintain a systemwide effective and 8.26efficient mechanism for seamless student transfer between system institutions that has a 8.27goal of minimal loss of credits for transferring students. The Degree Audit and Reporting 8.28System (DARS) and u.select database (and successor databases) housed within the office 8.29of the chancellor shall be the official repository of course equivalencies between system 8.30colleges and universities. Each system college and university shall be responsible for 8.31ensuring the accuracy and completeness of course equivalencies listed for courses offered 8.32by that college or university. The development and maintenance of the system must, at a 8.33minimum, address the following:9.1(1) alignment of institution curriculum and its communication to stakeholders;9.2(2) transfer between similar programs;9.3(3) documentation for transfer-related agreements between institutions;9.4(4) systemwide transfer information on the Internet that is easily accessible and 9.5maintained in a current and accurate status;9.6(5) training for campus-level staff to provide accurate and consistent advice to 9.7students;9.8(6) institutional rather than student obligation to provide prompt required 9.9documentation for course equivalency determinations; and9.10(7) consistency of transfer policies among institutions in compliance with a system 9.11policy.9.12    Sec. 13. Minnesota Statutes 2009 Supplement, section 136F.98, subdivision 1, is 9.13amended to read:9.14    Subdivision 1. Issuance of bonds. The Board of Trustees of the Minnesota State 9.15Colleges and Universities or a successor may issue revenue bonds under sections 
         136F.90 9.16to 
         136F.97 whose aggregate principal amount at any time may not exceed $200,000,0009.17$275,000,000, and payable from the revenue appropriated to the fund established by 9.18section 
         136F.94, and use the proceeds together with other public or private money that 9.19may otherwise become available to acquire land, and to acquire, construct, complete, 9.20remodel, and equip structures or portions thereof to be used for dormitory, residence hall, 9.21student union, food service, parking purposes, or for any other similar revenue-producing 9.22building or buildings of such type and character as the board finds desirable for the good 9.23and benefit of the state colleges and universities. Before issuing the bonds or any part 9.24of them, the board shall consult with and obtain the advisory recommendations of the 9.25chairs of the house of representatives Ways and Means Committee and the senate Finance 9.26Committee about the facilities to be financed by the bonds.9.27    Sec. 14. Minnesota Statutes 2009 Supplement, section 299A.45, subdivision 1, is 9.28amended to read:9.29    Subdivision 1. Eligibility. A person is eligible to receive educational benefits under 9.30this section if the person:9.31    (1) is certified under section 
         299A.44 and in compliance with this section and rules 9.32of the commissioner of public safety and the Minnesota Office of Higher Education;9.33    (2) is enrolled in an undergraduate degree or certificate program after June 30, 1990, 9.34at an eligible Minnesota institution as provided in section 
         136A.101, subdivision 4;10.1    (3) has not received a baccalaureate degree or been enrolled full time for nine10.2eight semesters or the equivalent, except that a student who withdraws from enrollment 10.3for active military service is entitled to an additional semester or the equivalent of 10.4eligibility; and10.5    (4) is related in one of the following ways to a public safety officer killed in the 10.6line of duty on or after January 1, 1973:10.7    (i) as a dependent child less than 23 years of age;10.8    (ii) as a surviving spouse; or10.9    (iii) as a dependent child less than 30 years of age who has served on active military 10.10duty 181 consecutive days or more and has been honorably discharged or released to the 10.11dependent child's reserve or National Guard unit.10.12    Sec. 15. Laws 2009, chapter 95, article 1, section 3, subdivision 6, is amended to read:

10.13Subd. 6.Achieve Scholarship Program4,350,0004,350,000

10.14For scholarships under Minnesota Statutes, 10.15section 
         136A.127,  the office shall transfer 10.16the appropriation for fiscal year 2011 to the 10.17appropriation for state grants. 10.18    Sec. 16. Laws 2009, chapter 95, article 1, section 3, subdivision 21, is amended to read:

10.19Subd. 21.Transfers

10.20The Minnesota Office of Higher Education 10.21may transfer unencumbered balances from 10.22the appropriations in this section to the state 10.23grant appropriation, the interstate tuition 10.24reciprocity appropriation, the child care 10.25grant appropriation, the Indian scholarship 10.26appropriation, the state work-study 10.27appropriation, the achieve scholarship 10.28appropriation, the public safety officers' 10.29survivors appropriation, and the Minnesota 10.30college savings plan appropriation. Transfers 10.31from the state grant, child care, or state 10.32work-study appropriations may only be made 10.33to the extent there is a projected surplus in 11.1the appropriation. A transfer may be made 11.2only with prior written notice to the chairs 11.3of the senate and house of representatives 11.4committees with jurisdiction over higher 11.5education finance.11.6EFFECTIVE DATE.This section is effective the day following final enactment.11.7    Sec. 17. Laws 2009, chapter 95, article 1, section 5, subdivision 2, is amended to read:

11.8Subd. 2.Operations and Maintenance550,345,000604,239,000

11.9(a) This appropriation includes funding for 11.10operation and maintenance of the system.11.11(b) The Board of Regents shall submit 11.12expenditure reduction plans by March 15, 11.132010, to the committees of the legislature 11.14with responsibility for higher education 11.15finance to achieve the 2012-2013 base 11.16established in this section. The plan must 11.17focus on protecting direct instruction.11.18(c) Appropriations under this subdivision 11.19may be used for a new scholarship under 11.20Minnesota Statutes, section 
         137.0225, to 11.21complement the University's Founders 11.22scholarship.11.23(d) This appropriation includes amounts for 11.24an Ojibwe Indian language program on the 11.25Duluth campus.11.26(e) This appropriation includes money for the 11.27Dakota language teacher training immersion 11.28program on the Twin Cities campus to 11.29prepare teachers to teach in Dakota language 11.30immersion programs. 11.31(f) This appropriation includes money for the 11.32Veterinary Diagnostic Laboratory to preserve 11.33accreditation.12.1(g) This appropriation includes money in 12.2fiscal year 2010 for a onetime grant to the 12.3Minnesota Wildlife Rehabilitation Center for 12.4their uncompensated expenses in an amount 12.5equal to the loan balance as of March 11, 12.62010, for expenses related to the center's 12.7move from the campus.12.8(h) For fiscal years 2012 and 2013, the 12.9base for operations and maintenance is 12.10$596,930,000 each year.12.11EFFECTIVE DATE.This section is effective the day following final enactment.12.12    Sec. 18. OFFICE OF HIGHER EDUCATION CARRYFORWARD.12.13Notwithstanding Minnesota Statutes, section 136A.125, subdivision 7, or 136A.233, 12.14subdivision 1, the Office of Higher Education may carry forward to fiscal year 2011, funds 12.15allocated to an institution for the child care and work study programs that exceed the actual 12.16need and were refunded to the office from fiscal year 2010. Notwithstanding Minnesota 12.17Statutes, section 136A.125, subdivision 4c, funds carried forward for the child care 12.18program in fiscal year 2011 may be used to expand the number of recipients in the program.12.19    Sec. 19. REPORT OF CREDIT TRANSFER ACTIVITIES.12.20The Board of Trustees of the Minnesota State Colleges and Universities shall report 12.21on February 15, 2011, and annually thereafter through 2015, on its activities to achieve 12.22the credit transfer goals of Minnesota Statutes, section 136F.302, and the results of those 12.23activities. The report shall be made to the chairs and ranking minority members of the 12.24legislative committees with primary jurisdiction over higher education policy and finance. 12.25The goals of Minnesota Statutes, section 136F.302, should be fully achieved as soon as 12.26possible, but no later than the start of the 2015-2016 academic year.12.27    Sec. 20. MNSCU REVENUE BONDS FOR STATE UNIVERSITIES.12.28Notwithstanding Minnesota Statutes, section 136F.98, subdivision 1, for fiscal years 12.292010 and 2011, the board of trustees must use the increase in the aggregate revenue bond 12.30limit in Minnesota Statutes, section 136F.98, subdivision 1, to issue revenue bonds for 12.31eligible projects at state universities.13.1    Sec. 21. PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF 13.2MINNESOTA STATE COLLEGES AND UNIVERSITIES.13.3    Subdivision 1.Establishment.To increase the distribution of potential economic 13.4benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and 13.5Universities, a pilot project is established to transfer certain reserve deposits of selected 13.6institutions from the state treasury to a community financial institution. Notwithstanding 13.7Minnesota Statutes, section 16A.27, on July 1, 2010, the commissioner of management 13.8and budget shall transfer the board-required reserve funds of colleges and universities 13.9selected by the board of trustees under subdivision 2, to a community financial institution 13.10designated for each of the participating colleges and universities.13.11    Subd. 2.Participating colleges and universities.By June 11, 2010, colleges and 13.12universities must apply to the Board of Trustees of the Minnesota State Colleges and 13.13Universities for participation in the pilot project. Each applicant must designate one or 13.14more community financial institutions for the deposit of board-required reserves, with the 13.15terms of the deposit for each designated community financial institution. The designated 13.16community financial institution must be located within 25 miles of a participating campus. 13.17From the applicants, the board shall select eight postsecondary institutions to participate in 13.18the local deposit pilot project. In making its selection, the board must consider the size 13.19of the institution's reserves and the terms offered by the designated community financial 13.20institutions. Two-year and four-year institutions must be selected to participate in the pilot 13.21project and at least five of the selected institutions must be located in greater Minnesota.13.22By June 25, 2010, the board must notify the commissioner of management and 13.23budget of the participating colleges and universities and the associated community 13.24financial institutions.13.25    Subd. 3.Community financial institution.As used in this section, "community 13.26financial institution" means a federally insured bank or credit union, chartered as a bank 13.27or credit union by the state of Minnesota or the United States, that is headquartered in 13.28Minnesota.13.29    Subd. 4.Evaluation and report.The commissioner of management and budget and 13.30the board of trustees shall independently evaluate the effectiveness or harm of the local 13.31deposit pilot project in increasing the use of community financial institutions and providing 13.32wider distribution of the economic benefit of the deposit of postsecondary reserves. Each 13.33evaluation must include the participating colleges, universities, and community financial 13.34institutions. The commissioner and the board shall report the results of the pilot project 13.35evaluation to the appropriate committees of the legislature by December 1, 2011, with 13.36recommendations on the future implementation of the pilot project. 14.1    Sec. 22. APPROPRIATION REDUCTIONS.14.2Any reduction in appropriations for the biennium ending June 30, 2011, for the 14.3central system office of Minnesota State Colleges and Universities must not be passed 14.4through to any institution or campus. The board of trustees must not charge any institution 14.5for appropriation reductions made to the central office.14.6    Sec. 23.  REPEALER.14.7(a) Minnesota Statutes 2008, section 136A.127, subdivisions 1, 3, 5, 6, 7, 10, and 14.811, are repealed.14.9(b) Minnesota Statutes 2009 Supplement, sections 135A.61; 136A.121, subdivision 14.109b; and 136A.127, subdivisions 2, 4, 9, 9b, 10a, and 14, are repealed.14.11ARTICLE 214.12ECONOMIC DEVELOPMENT APPROPRIATIONS

14.13Section 1. SUMMARY OF APPROPRIATIONS.

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

14.1620102011Total14.17General$(1,500,000)$(1,615,000)$(3,115,000)14.18Total$(1,500,000)$(1,615,000)$(3,115,000)

14.19Sec. 2. APPROPRIATIONS.

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

14.29APPROPRIATIONS14.30Available for the Year14.31Ending June 3014.3220102011

15.115.2Sec. 3. EMPLOYMENT AND ECONOMIC DEVELOPMENT

15.3Subdivision 1.Total Appropriation$(1,500,000)$(1,847,000)

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

15.715.8Subd. 2.Business and Community Development-0-(690,000)

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

15.19Subd. 3.Workforce Development-0-(857,000)

15.20(a) $400,000 in 2011 is from the appropriation 15.21for the Minnesota job skills partnership 15.22program under Minnesota Statutes, sections 15.23116L.01 to 116L.17.15.24(b) $119,000 in 2011 is from the appropriation 15.25for State Services for the Blind activities.15.26(c) $67,000 in 2011 is from the appropriation 15.27for grants to Centers for Independent Living.15.28(d) $222,000 in 2011 is from the 15.29appropriation for extended employment 15.30services under Minnesota Statutes, section 15.31268A.15. Notwithstanding Minnesota 15.32Rules, parts 3300.2030 to 3300.2055, the 15.33commissioner may adjust contracts with 15.34eligible extended employment providers in 16.1order to achieve required reductions through 16.2June 30, 2011. The general fund base for 16.3extended employment services is $5,405,000 16.4in fiscal year 2012 and $5,405,000 in fiscal 16.5year 2013.16.6(e) $49,000 in 2011 is from the appropriation 16.7for grants to programs that provide 16.8employment support services to persons with 16.9mental illness under Minnesota Statutes, 16.10sections 268A.13 and 268A.14. $2,000 16.11in each year is from the appropriation for 16.12administrative expenses.16.13(f) The general fund base for workforce 16.14development is $29,181,000 in fiscal year 16.152012 and $29,181,000 in fiscal year 2013.

16.16Subd. 4.State-Funded Administration-0-(300,000)

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

16.20Subd. 5.Carryforward(1,500,000)-0-

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

16.23Subd. 6.Transfers and Cancellations

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

17.1017.11Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY; TRANSFERS$-0-$-0-

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

17.2217.23Sec. 5. BUREAU OF MEDIATION SERVICES$-0-$(53,000)

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

17.2817.29Sec. 6. BOARD OF COSMETOLOGIST EXAMINERS$-0-$225,000

17.30Sec. 7. BOARD OF BARBER EXAMINERS$-0-$60,000

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

18.118.2Subd. 2.Business and Community Development8,980,0008,980,000

18.3Appropriations by Fund18.4General7,941,0007,941,00018.5Remediation700,000700,00018.618.7Workforce 
                  		Development339,000339,000

18.8(a) $700,000 the first year and $700,000 the 18.9second year are from the remediation fund for 18.10contaminated site cleanup and development 18.11grants under Minnesota Statutes, section 18.12116J.554
         . This appropriation is available 18.13until expended.18.14(b) $200,000 each year is from the general 18.15fund for a grant to WomenVenture for 18.16women's business development programs 18.17and for programs that encourage and assist 18.18women to enter nontraditional careers in the 18.19trades; manual and technical occupations; 18.20science, technology, engineering, and 18.21mathematics-related occupations; and green 18.22jobs. This appropriation may be matched 18.23dollar for dollar with any resources available 18.24from the federal government for these 18.25purposes with priority given to initiatives 18.26that have a goal of increasing by at least ten 18.27percent the number of women in occupations 18.28where women currently comprise less than 25 18.29percent of the workforce. The appropriation 18.30is available until expended.18.31(c) $105,000 each year is from the general 18.32fund and $50,000 each year is from the 18.33workforce development fund for a grant to 18.34the Metropolitan Economic Development 18.35Association for continuing minority business 18.36development programs in the metropolitan 19.1area. This appropriation must be used for the 19.2sole purpose of providing free or reduced 19.3fee business consulting services to minority 19.4entrepreneurs and contractors.19.5(d)(1) $500,000 each year is from the 19.6general fund for a grant to BioBusiness 19.7Alliance of Minnesota for bioscience 19.8business development programs to promote 19.9and position the state as a global leader 19.10in bioscience business activities. This 19.11appropriation is added to the department's 19.12base. These funds may be used to create, 19.13recruit, retain, and expand biobusiness 19.14activity in Minnesota; implement the 19.15destination 2025 statewide plan; update 19.16a statewide assessment of the bioscience 19.17industry and the competitive position of 19.18Minnesota-based bioscience businesses 19.19relative to other states and other nations; 19.20and develop and implement business and 19.21scenario-planning models to create, recruit, 19.22retain, and expand biobusiness activity in 19.23Minnesota.19.24(2) The BioBusiness Alliance must report 19.25each year by February 15 to the committees 19.26of the house of representatives and the senate 19.27having jurisdiction over bioscience industry 19.28activity in Minnesota on the use of funds; 19.29the number of bioscience businesses and 19.30jobs created, recruited, retained, or expanded 19.31in the state since the last reporting period; 19.32the competitive position of the biobusiness 19.33industry; and utilization rates and results of 19.34the business and scenario-planning models 19.35and outcomes resulting from utilization of 19.36the business and scenario-planning models.20.1(e)(1) Of the money available in the 20.2Minnesota Investment Fund, Minnesota 20.3Statutes, section 
         116J.8731, to the 20.4commissioner of the Department of 20.5Employment and Economic Development, 20.6up to $3,000,000 is appropriated in fiscal year 20.72010 for a loan to an aircraft manufacturing 20.8and assembly company, associated with the 20.9aerospace industry, for equipment utilized 20.10to establish an aircraft completion center 20.11at the Minneapolis-St. Paul International 20.12Airport. The finishing center must use the 20.13state's vocational training programs designed 20.14specifically for aircraft maintenance training, 20.15and to the extent possible, work to recruit 20.16employees from these programs. The center 20.17must create at least 200 new manufacturing 20.18jobs within 24 months of receiving the 20.19loan, and create not less than 500 new 20.20manufacturing jobs over a five-year period 20.21in Minnesota.20.22(2) This loan is not subject to loan limitations 20.23under Minnesota Statutes, section 
         116J.8731, 20.24subdivision 5
         . Any match requirements 20.25under Minnesota Statutes, section 
         116J.8731, 20.26subdivision 3
         , may be made from current 20.27resources. This is a onetime appropriation 20.28and is effective the day following final 20.29enactment.20.30(f) $65,000 each year is from the general 20.31fund for a grant to the Minnesota Inventors 20.32Congress, of which at least $6,500 must be 20.33used for youth inventors.21.1(g) $200,000 the first year and $200,000 the 21.2second year are for the Office of Science and 21.3Technology. This is a onetime appropriation.21.4(h) $500,000 the first year and $500,000 the 21.5second year are for a grant to Enterprise 21.6Minnesota, Inc., for the small business 21.7growth acceleration program under 21.8Minnesota Statutes, section 
         116O.115. This 21.9is a onetime appropriation and is available 21.10until expended.21.11(i)(1) $100,000 each year is from the 21.12workforce development fund for a grant 21.13under Minnesota Statutes, section 
         116J.421, 21.14to the Rural Policy and Development 21.15Center at St. Peter, Minnesota. The grant 21.16shall be used for research and policy 21.17analysis on emerging economic and social 21.18issues in rural Minnesota, to serve as a 21.19policy resource center for rural Minnesota 21.20communities, to encourage collaboration 21.21across higher education institutions, to 21.22provide interdisciplinary team approaches 21.23to research and problem-solving in rural 21.24communities, and to administer overall 21.25operations of the center.21.26(2) The grant shall be provided upon the 21.27condition that each state-appropriated 21.28dollar be matched with a nonstate dollar. 21.29Acceptable matching funds are nonstate 21.30contributions that the center has received and 21.31have not been used to match previous state 21.32grants. Any funds not spent the first year are 21.33available the second year.21.34(j) Notwithstanding Minnesota Statutes, 21.35section 
         268.18, subdivision 2, $414,000 of 22.1funds collected for unemployment insurance 22.2administration under this subdivision is 22.3appropriated as follows: $250,000 to Lake 22.4County for ice storm damage; $64,000 is for 22.5the city of Green Isle for reimbursement of 22.6fire relief efforts and other expenses incurred 22.7as a result of the fire in the city of Green Isle; 22.8and $100,000 is to develop the construction 22.9mitigation pilot program to make grants for 22.10up to five projects statewide available to local 22.11government units to mitigate the impacts of 22.12transportation construction on local small 22.13business. These are onetime appropriations 22.14and are available until expended.22.15(k) Up to $10,000,000 is appropriated from 22.16the Minnesota minerals 21st century fund to 22.17the commissioner of Iron Range resources 22.18and rehabilitation to make a grant grants22.19or forgivable loan loans to a manufacturer22.20manufacturers of windmill blades, other 22.21renewable energy manufacturing, or biomass 22.22products at a facility facilities  to be located 22.23within the taconite tax relief area defined 22.24in Minnesota Statutes, section 
         273.134. No 22.25match is required for the renewable energy 22.26manufacturing or biomass projects.22.27(l) $1,000,000 is appropriated from the 22.28Minnesota minerals 21st century fund to 22.29the Board of Trustees of the Minnesota 22.30State Colleges and Universities for a grant 22.31to the Northeast Higher Education District 22.32for planning, design, and construction of 22.33classrooms and housing facilities for upper 22.34division students in the engineering program.23.1(m)(1) $189,000 each year is appropriated 23.2from the workforce development fund for 23.3grants of $63,000 to eligible organizations 23.4each year to assist in the development of 23.5entrepreneurs and small businesses. Each 23.6state grant dollar must be matched with $1 23.7of nonstate funds. Any balance in the first 23.8year does not cancel but is available in the 23.9second year.23.10(2) Three grants must be awarded to 23.11continue or to develop a program. One 23.12grant must be awarded to the Riverbend 23.13Center for Entrepreneurial Facilitation 23.14in Blue Earth County, and two to other 23.15organizations serving Faribault and Martin 23.16Counties. Grant recipients must report to the 23.17commissioner by February 1 of each year 23.18that the organization receives a grant with the 23.19number of customers served; the number of 23.20businesses started, stabilized, or expanded; 23.21the number of jobs created and retained; and 23.22business success rates. The commissioner 23.23must report to the house of representatives 23.24and senate committees with jurisdiction 23.25over economic development finance on the 23.26effectiveness of these programs for assisting 23.27in the development of entrepreneurs and 23.28small businesses.23.29EFFECTIVE DATE.This section is effective the day following final enactment.23.30    Sec. 9. APPROPRIATIONS MADE ONLY ONCE.23.31If the appropriations made in this article are enacted more than once in the 2010 23.32regular session, these appropriations must be given effect only once.23.33EFFECTIVE DATE.This section is effective the day following final enactment.24.1ARTICLE 324.2MINERALS24.3    Section 1. Minnesota Statutes 2009 Supplement, section 298.294, is amended to read:24.4298.294 INVESTMENT OF FUND.24.5(a) The trust fund established by section 
         298.292 shall be invested pursuant to law 24.6by the State Board of Investment and the net interest, dividends, and other earnings arising 24.7from the investments shall be transferred, except as provided in paragraph (b), on the first 24.8day of each month to the trust and shall be included and become part of the trust fund. 24.9The amounts transferred, including the interest, dividends, and other earnings earned 24.10prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year 24.111983, which is appropriated April 21, 1983, are appropriated from the trust fund to the 24.12commissioner of Iron Range resources and rehabilitation for deposit in a separate account 24.13for expenditure for the purposes set forth in section 
         298.292. Amounts appropriated 24.14pursuant to this section shall not cancel but shall remain available unless expended.24.15(b) For fiscal years 2010 and 2011 only, $1,000,000$1,500,000 of the net interest, 24.16dividends, and other earnings under paragraph (a) shall be transferred to a special account. 24.17Funds in the special account are available for loans or grants to businesses, with priority 24.18given to businesses with 25 or fewer employees. Funds may be used for wage subsidies 24.19for up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, 24.20short-term operating expenses and purchase of equipment and materials by businesses 24.21under financial duress,  that will create additional jobs in the taconite assistance area under 24.22section 
         273.1341. Expenditures from the special account must be approved by at least 24.23seven Iron Range Resources and Rehabilitation Board members.24.24(c) To qualify for a grant or loan, a business must be currently operating and have 24.25been operating for one year immediately prior to its application for a loan or grant, and its 24.26corporate headquarters must be located in the taconite assistance area.24.27EFFECTIVE DATE.This section is effective the day following final enactment.24.28    Sec. 2. Laws 2009, chapter 78, article 7, section 2, is amended to read:24.29    Sec. 2. IRON RANGE RESOURCES AND REHABILITATION; EARLY 24.30SEPARATION INCENTIVE PROGRAM AUTHORIZATION.24.31(a) Notwithstanding any law to the contrary, the commissioner of Iron Range 24.32resources and rehabilitation, in consultation with the commissioner of management and 24.33budget, may shall offer a targeted early separation incentive program for employees of the 25.1commissioner who have attained the age of 60 years or who have received credit for at 25.2least 30 years of allowable service under the provisions of Minnesota Statutes, chapter 352.25.3(b) The early separation incentive program may include one or more of the following:25.4(1) employer-paid postseparation health, medical, and dental insurance until age 25.565; and25.6(2) cash incentives that may, but are not required to be, used to purchase additional 25.7years of service credit through the Minnesota State Retirement System, to the extent that 25.8the purchases are otherwise authorized by law.25.9(c) The commissioner of Iron Range resources and rehabilitation shall establish 25.10eligibility requirements for employees to receive an incentive.25.11(d) The commissioner of Iron Range resources and rehabilitation, consistent with the 25.12established program provisions under paragraph (b), and with the eligibility requirements 25.13under paragraph (c), may designate specific programs or employees as eligible to be 25.14offered the incentive program.25.15(e) Acceptance of the offered incentive must be voluntary on the part of the 25.16employee and must be in writing. The incentive may only be offered at the sole discretion 25.17of the commissioner of Iron Range resources and rehabilitation.25.18(f) The cost of the incentive is payable solely by funds made available to the 25.19commissioner of Iron Range resources and rehabilitation by law, but only on prior approval 25.20of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.25.21(g) This section and section 3 are repealed June 30, 2011 December 31, 2012.25.22EFFECTIVE DATE.This section is effective the day following final enactment.25.23    Sec. 3. IRON RANGE HERITAGE CENTER AND PERPICH ARCHIVES.25.24The Iron Range Resources and Rehabilitation Board shall change the name of 25.25"Ironworld Discovery Center" to "Iron Range Heritage Center and Perpich Archives" 25.26consistent with the changes in section 5.25.27    Sec. 4. 2010 DISTRIBUTIONS ONLY.25.28    For distributions in 2010 only, a special fund is established to receive 19.765 cents 25.29per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, 25.30subdivision 6, and 6.367 cents per ton that would otherwise be allocated under Minnesota 25.31Statutes, section 298.28, subdivision 11, to the Douglas J. Johnson economic protection 25.32fund. The following amounts are distributed to St. Louis County acting as the fiscal agent 25.33for the recipients for the following specified purposes:26.1    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide 26.2incentives for at least two dentists to establish dental practices in high-need areas of the 26.3taconite tax relief area;26.4(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 26.5heat at the Olcott Park Greenhouse/Virginia Commons project;26.6(3) 0.637 cent per ton must be paid to the city of Virginia for health and safety 26.7repairs at the Miners Memorial;26.8(4) 0.955 cent per ton must be paid to the city of Eveleth for the reconstruction 26.9of Highway 142/Grant and Park Avenues;26.10(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for 26.11upgrades and capital improvements to the Hodgins Berardo Arena in Coleraine;26.12(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 26.13pumphouse modifications;26.14(7) 0.159 cent per ton must be paid to the city of Bovey for residential and 26.15commercial claims for water damage due to water and flood-related damage caused by 26.16the Canisteo Pit;26.17(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and 26.18child care center;26.19(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer 26.20upgrades;26.21(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and 26.22library project;26.23(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of 26.24water and sewer services for Lakewood Housing;26.25(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at 26.26the Children's Museum;26.27(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 26.28corrections. This amount must be matched by local sources;26.29(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;26.30(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;26.31(16) 0.159 cent per ton must be paid to Itasca County for an ATV trail; 26.32(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road 26.33railroad crossing;26.34(18) 0.088 cent per ton must be paid to the city of Clinton for expansion and striping 26.35of the community center parking lot;26.36(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;27.1(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure 27.2improvements, milling, and overlay for Summit Street between Alaska Avenue and 27.3Highway 135;27.4(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 27.5replacements and improvements in the Northeast Lower Alley area;27.6(22) 0.637 cent per ton must be paid to the town of White for replacement of the 27.7Stepetz Road culvert;27.8(23) 0.637 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 27.9Street and associated infrastructure;27.10(24) 0.637 cent per ton must be paid to the city of Mountain Iron for site 27.11improvements at the Park Ridge development;27.12(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure 27.13and site preparation for its renewable and sustainable energy park;27.14(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 27.15improvements;27.16(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road 27.17rebuilding for the Summit Addition;27.18(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 27.19improvements;27.20(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and 27.21sewer infrastructure improvements;27.22(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 27.23improvements;27.24(31) 0.318 cent per ton must be paid to the city of Cook for street and bridge 27.25improvements;27.26(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 27.27improvements;27.28(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 27.29improvements;27.30(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 27.31improvements;27.32(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 27.33improvements;27.34(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 27.35improvements;28.1(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 28.2improvements;28.3(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;28.4(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 28.5infrastructure improvements; 28.6(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 28.7improvements at the athletic facility; and28.8(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 28.9improvements.28.10EFFECTIVE DATE.This section is effective for the 2010 distribution, all of which 28.11must be made in the August 2010 payment.28.12    Sec. 5. REVISOR'S INSTRUCTION.28.13(a) The revisor of statutes shall change the terms "Douglas J. Johnson economic 28.14protection trust fund" or similar terms to "Mesabi miners' memorial economic development 28.15fund" or similar terms wherever they appear in Minnesota Statutes. The revisor shall also 28.16make grammatical changes related to the changes in terms.28.17(b) The revisor of statutes shall change the terms "Ironworld Discovery Center" to 28.18"Iron Range Heritage Center and Perpich Archives" wherever they appear in Minnesota 28.19Statutes.28.20ARTICLE 428.21MISCELLANEOUS28.22    Section 1. Minnesota Statutes 2009 Supplement, section 154.002, is amended to read:28.23154.002 OFFICERS; COMPENSATION; FEES; EXPENSES.28.24The Board of Barber Examiners shall annually elect a chair and secretary. It shall 28.25adopt and use a common seal for the authentication of its orders and records. The board 28.26shall appoint an executive secretary who or enter into an interagency agreement to procure 28.27the services of an executive secretary.  The executive secretary  shall not be a member of 28.28the board and who shall be in the unclassified civil service. The position of executive 28.29secretary may be a part-time position.28.30The executive secretary shall keep a record of all proceedings of the board. The 28.31expenses of administering this chapter shall be paid from the appropriations made to 28.32the Board of Barber Examiners.28.33Each member of the board shall take the oath provided by law for public officers.29.1A majority of the board, in meeting assembled, may perform and exercise all the 29.2duties and powers devolving upon the board.29.3The members of the board shall receive compensation for each day spent on board 29.4activities, but not to exceed 20 days in any calendar month nor 100 days in any calendar 29.5year.29.6The board shall have authority to employ such inspectors, clerks, deputies, and other 29.7assistants as it may deem necessary to carry out the provisions of this chapter.29.8EFFECTIVE DATE.This section is effective the day following final enactment.29.9    Sec. 2. Minnesota Statutes 2009 Supplement, section 154.003, is amended to read:29.10154.003 FEES.29.11    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the 29.12board, shall be paid to the executive secretary of the board. The executive secretary board29.13shall deposit the fees in the general fund in the state treasury.29.14    (b) The board shall charge the following fees:29.15    (1) examination and certificate, registered barber, $65 $85;29.16    (2) examination and certificate, apprentice, $60 $80;29.17    (3) examination, instructor, $160 $180;29.18    (4) certificate, instructor, $45 $65;29.19    (5) temporary teacher or apprentice permit, $60 $80;29.20    (6) renewal of license, registered barber, $60 $80;29.21    (7) renewal of license, apprentice, $50 $70;29.22    (8) renewal of license, instructor, $60 $80;29.23    (9) renewal of temporary teacher permit, $45 $65;29.24    (10) student permit, $25 $45;29.25    (11) initial shop registration, $65 $85;29.26    (12) initial school registration, $1,010 $1,030;29.27    (13) renewal shop registration, $65 $85;29.28    (14) renewal school registration, $260 $280;29.29    (15) restoration of registered barber license, $75 $95;29.30    (16) restoration of apprentice license, $70 $90;29.31    (17) restoration of shop registration, $85 $105;29.32    (18) change of ownership or location, $35 $55;29.33    (19) duplicate license, $20 $40; and29.34    (20) home study course, $75; and  $95.30.1    (21) registration of hair braiders, $20 per year.30.2    Sec. 3. Minnesota Statutes 2008, section 154.06, is amended to read:30.3154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 30.4REGISTERED APPRENTICE.30.5    Subdivision 1.Qualifications; duration of registration.(a) A person is qualified to 30.6receive a certificate of registration as a registered apprentice:30.7(1) who has completed at least ten grades of an approved school;30.8(2) who has graduated from a barber school approved by the board; and30.9(3) who has passed an examination conducted by the board to determine fitness to 30.10practice as a registered apprentice.30.11(b) An applicant for a certificate of registration to practice as an apprentice who fails 30.12to pass the examination conducted by the board is required to complete a further course 30.13of study of at least 500 hours, of not more than eight hours in any one working day, 30.14in a barber school approved by the board.30.15(c) A certificate of registration of an apprentice shall be valid for four years from the 30.16date the certificate of registration is issued by the board and shall not be renewed. During 30.17the four-year period the certificate of registration shall remain in full force and effect only 30.18if the apprentice complies with all the provisions of sections 
         154.001, 
         154.002, 
         154.003, 30.19154.01
          to 
         154.161, 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26, including the payment of 30.20an annual fee, and the rules of the board. 30.21    Subd. 2.Limited extension of registration.(a) If a registered apprentice, during 30.22the term in which the certificate of registration is in effect, enters full-time active duty in 30.23the armed forces of the United States of America, the expiration date of the certificate 30.24of registration shall be extended by a period of time equal to the period or periods of 30.25active duty.30.26(b) This paragraph applies when a person graduates from a barber school approved 30.27by the board and is issued a certificate of registration while incarcerated by the Department 30.28of Corrections or the Federal Bureau of Prisons. The expiration date of the certificate shall 30.29be extended once so that it expires four years from the date of the person's first release 30.30from a correctional facility after becoming a registered apprentice.30.31    Sec. 4. Minnesota Statutes 2008, section 154.065, subdivision 2, is amended to read:30.32    Subd. 2. Qualifications. A person is qualified to receive a certificate of registration 30.33as an instructor of barbering who:31.1(1) is a graduate from an approved high school, or its equivalent, as determined by 31.2examination by the Department of Education;31.3(2) has qualified for a teacher's or instructor's vocational certificate successfully 31.4completed at least 38 hours of training in a program or programs approved by the board and 31.5that will provide the knowledge and skills necessary to instruct in the field of barbering;31.6(3) has at least three years experience as is currently a registered barber in this state, 31.7or its equivalent as determined by the board with at least 1,400 hours of experience as 31.8a registered barber; and31.9(4) has passed an examination conducted by the board to determine fitness to 31.10instruct in barbering.31.11A certificate of registration under this section is provisional until a teacher's or 31.12instructor's vocational certificate has been issued by the Department of Education. A 31.13provisional certificate of registration is valid for 30 days and is not renewable.31.14    Sec. 5. Minnesota Statutes 2008, section 154.07, is amended by adding a subdivision 31.15to read:31.16    Subd. 7.Transfer students.When a student has paid or made arrangement to pay 31.17all applicable tuition fees to a barbering school, that school shall certify a student's hours 31.18to another school within ten days of the student's written request. The former school may 31.19charge a nominal fee for providing this certification and transfer of hours.31.20    Sec. 6. Minnesota Statutes 2008, section 154.15, is amended by adding a subdivision 31.21to read:31.22    Subd. 3.Continuing education required for registered instructors.(a) A 31.23registered instructor of barbering may not renew a certificate of registration without 31.24satisfying the following continuing education requirements: 31.25(1) a registered instructor must submit proof of at least five continuing education 31.26credits earned since the original certification or latest renewal, whichever is latest, unless 31.27the registered instructor has failed to renew as described in subdivision 2; and31.28(2) a registered instructor who fails to renew may not be reinstated under subdivision 31.292 without proof of at least five continuing education credits earned since the original 31.30certification or latest renewal, whichever is latest, plus an additional 2.5 credits for each 31.31six months, or portion thereof, in excess of the date of the original failure to renew, 31.32calculated from the date that the board receives the application for renewal.31.33(b) For purposes of this subdivision, a registered instructor may earn continuing 31.34education credits as follows:32.1(1) one credit for every five hours of service as a voting member on a board, 32.2commission, task force, or nonprofit organization;32.3(2) one credit for each credit earned for completing a class or course at a 32.4postsecondary institution, a degree-granting college or university, or a trade and technical 32.5school that grants associate degrees; and32.6(3) one credit for every five hours of attendance at a trade show or formal class 32.7offered by an organization related to barbering or cosmetology.32.8    Sec. 7. Minnesota Statutes 2009 Supplement, section 155A.23, is amended by adding a 32.9subdivision to read:32.10    Subd. 5a.Individual license."Individual license" means a license described in 32.11section 155A.25, subdivision 1, paragraph (a), clauses (1) and (2).32.12    Sec. 8. Minnesota Statutes 2009 Supplement, section 155A.24, subdivision 2, is 32.13amended to read:32.14    Subd. 2. Hiring and assignment of employees. The board has the authority to hire 32.15qualified personnel in the classified service to assist in administering the law, including 32.16those for the testing and licensing of applicants and the continuing inspections required.32.17All staff must receive periodic training to improve and maintain customer service skills.32.18EFFECTIVE DATE.This section is effective the day following final enactment.32.19    Sec. 9. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding a 32.20subdivision to read:32.21    Subd. 3.Feedback.The board must provide access on its Web site for customers to 32.22provide feedback on interaction with the board and board staff. The information posted to 32.23the Web site by customers must be readily accessible to the public. The board must also 32.24record each complaint it receives, the board's response, and the time elapsed in responding 32.25to and resolving each complaint.32.26EFFECTIVE DATE.This section is effective the day following final enactment.32.27    Sec. 10. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding 32.28a subdivision to read:32.29    Subd. 4.Report.The board must report by January 15 each year to the standing 32.30committees of the house of representatives and the senate having jurisdiction over the 32.31board on its customer service training and its complaint resolution activities.33.1EFFECTIVE DATE.This section is effective the day following final enactment.33.2    Sec. 11. Minnesota Statutes 2009 Supplement, section 155A.25, is amended to read:33.3155A.25 COSMETOLOGY FEES; LICENSE EXPIRATION DATE.33.4    Subdivision 1. Schedule. The fee schedule for licensees is as follows for licenses 33.5issued prior to July 1, 2010, and after June 30, 2013:33.6(a) Three-year license fees:33.7(1) cosmetologist, manicurist, esthetician, $90 for each initial license, and $60 for 33.8each renewal;33.9(2) instructor, manager, $120 for each initial license, and $90 for each renewal;33.10(3) salon, $130 for each initial license, and $100 for each renewal; and33.11(4) school, $1,500.33.12(b) Penalties:33.13(1) reinspection fee, variable;33.14(2) manager and owner with lapsed practitioner, $150 each;33.15(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and 33.16instructor license, $45; and33.17(4) expired salon or school license, $50.33.18(c) Administrative fees:33.19(1) certificate of identification, $20;33.20(2) school original application, $150;33.21(3) name change, $20;33.22(4) letter of license verification, $30;33.23(5) duplicate license, $20;33.24(6) processing fee, $10; and33.25(7) special event permit, $75 per year; and33.26(8) registration of hair braiders, $20 per year.33.27(d) All fees established in this subdivision must be paid to the executive secretary 33.28of the board. The executive secretary of the board shall deposit the fees in the general 33.29fund in the state treasury.33.30    Subd. 1a.Schedule.The fee schedule for licensees is as follows for licenses issued 33.31after June 30, 2010, and prior to July 1, 2013:33.32(a) Three-year license fees:33.33(1) cosmetologist, manicurist, or esthetician:33.34(i) $90 for each initial license and a $40 nonrefundable initial license application fee, 33.35for a total of $130; and34.1(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for 34.2a total of $75;34.3(2) instructor or manager:34.4(i) $120 for each initial license and a $40 nonrefundable initial license application 34.5fee, for a total of $160; and 34.6(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a 34.7total of $105;34.8(3) salon:34.9(i) $130 for each initial license and a $100 nonrefundable initial license application 34.10fee, for a total of $230; and 34.11(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a 34.12total of $150; and34.13(4) school:34.14(i) $1,500 for each initial license and a $1,000 nonrefundable initial license 34.15application fee, for a total of $2,500; and34.16(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee, 34.17for a total of $2,000.34.18(b) Penalties:34.19(1) reinspection fee, variable;34.20(2) manager and owner with lapsed practitioner, $150 each;34.21(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and 34.22instructor license, $45; and34.23(4) expired salon or school license, $50.34.24(c) Administrative fees:34.25(1) certificate of identification, $20;34.26 (2) name change, $20;34.27 (3) letter of license verification, $30;34.28 (4) duplicate license, $20;34.29 (5) processing fee, $10; 34.30 (6) special event permit, $75 per year; and34.31(7) registration of hair braiders, $20 per year.34.32    Subd. 1b.Fees disposition; appropriation.(a) All fees established in subdivisions 34.331 and 1a must be paid to the executive secretary of the board.34.34(b) The executive secretary of the board shall deposit all fees in the general fund 34.35in the state treasury.35.1    Subd. 2. Refunds. Refunds shall be given in the following situations: overpayment; 35.2death or permanent disability before the effective date of a license; or an individual's 35.3ineligibility for licensure. Applicants determined ineligible to receive a license will be 35.4refunded the license fee minus any processing fee and minus any application fee this 35.5section requires.35.6    Subd. 3. Other licenses. A licensee who applies for licensing in a second category 35.7shall pay the full license fee and application fee for the second category of license.35.8    Subd. 4.License expiration date.The board shall, in a manner determined by the 35.9board and without the need for rulemaking under chapter 14, phase in changes to initial 35.10and renewal license expiration dates so that by January 1, 2014:35.11(1) individual licenses expire on the last day of the licensee's birth month of the 35.12year due; and35.13(2) salon licenses expire on the last day of the month of initial licensure of the 35.14year due.35.15    Subd. 5.Board must approve or deny application; timeline.Within 15 working 35.16days of receiving a complete application and the required fees for an initial or renewal 35.17individual license, the board must (1) either grant or deny the application, and (2) issue the 35.18license or notify the applicant of the denial.35.19    Sec. 12. Minnesota Statutes 2008, section 326B.148, subdivision 1, is amended to read:35.20    Subdivision 1. Computation. To defray the costs of administering sections 35.21326B.101
          to 
         326B.194, a surcharge is imposed on all permits issued by municipalities in 35.22connection with the construction of or addition or alteration to buildings and equipment or 35.23appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge 35.24receipts to award grants for code research and development and education. 35.25    If the fee for the permit issued is fixed in amount the surcharge is equivalent to 35.26one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June 35.2730, 2011, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5, 35.28whichever amount is greater. For all other permits, the surcharge is as follows:35.29    (1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the 35.30surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition, 35.31or alteration;35.32    (2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths 35.33mill (.0004) of the value between $1,000,000 and $2,000,000;35.34    (3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths 35.35mill (.0003) of the value between $2,000,000 and $3,000,000;36.1    (4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth 36.2mill (.0002) of the value between $3,000,000 and $4,000,000;36.3    (5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth 36.4mill (.0001) of the value between $4,000,000 and $5,000,000; and36.5    (6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth 36.6mill (.00005) of the value that exceeds $5,000,000.36.7    Sec. 13. RULEMAKING.36.8    Subdivision 1.Conforming changes.The Board of Cosmetologist Examiners 36.9must amend Minnesota Rules, parts 2105.0200 and 2105.0330, to conform to the license 36.10expiration date requirements of Minnesota Statutes, section 155A.25, subdivision 4, by 36.11specifying that individual or salon licenses expire on the last day of an individual's birth 36.12month of the year due, or on the last day of the month of initial licensure of the year due.36.13    Subd. 2.Good cause exemption.The Board of Cosmetologist Examiners must use 36.14the good cause exemption under Minnesota Statutes, section 14.388, subdivision 1, clause 36.15(3), to adopt the rules required by this section. Minnesota Statutes, section 14.386, does 36.16not apply except as provided in Minnesota Statutes, section 14.388.36.17    Sec. 14. EXPEDITED RULES; PLUMBING BOARD.36.18The Plumbing Board shall have expedited rulemaking authority provided under 36.19Minnesota Statutes, section 14.389 for expedited rules regarding water-free urinals that 36.20meet the Minnesota Plumbing Board standards. This authority expires December 31, 2010.36.21EFFECTIVE DATE.This section is effective the day following final enactment.36.22    Sec. 15.  REPEALER.36.23Minnesota Statutes 2008, sections 154.07, subdivision 5; and 176.135, subdivision 36.241b, are repealed.