HF 2037

4th Engrossment - 86th Legislature (2009 - 2010) Posted on 05/11/2010 02:52pm

A bill for an act
relating to the state budget; balancing proposed general fund spending and
anticipated general fund revenue; modifying certain payment schedules to
improve cash flow; making reductions in appropriations for E-12 education,
higher education, environment and natural resources, energy and commerce,
agriculture, economic development, transportation, public safety, state
government, human services, and health; modifying calculation of state tax aids
and credits; providing for deposit of certain receipts in the special revenue
fund rather than the general fund; adding a fourth tier to income tax rates;
appropriating money; amending Minnesota Statutes 2008, sections 3.9741,
subdivision 2; 8.15, subdivision 3; 13.03, subdivision 10; 16C.23, subdivision
6; 103B.101, subdivision 9; 103I.681, subdivision 11; 116J.551, subdivision 1;
123B.75, subdivisions 5, 9, by adding a subdivision; 126C.48, subdivision 7;
127A.441; 127A.45, subdivisions 2, 13; 127A.46; 190.32; 256B.76, subdivision
4; 257.69, subdivision 2; 260C.331, subdivision 6; 273.1384, subdivision 6,
as added; 276.112; 289A.60, by adding a subdivision; 290.06, subdivision 2d;
299C.48; 299E.02; 446A.086, subdivision 2, as amended; 469.177, subdivision
11; 518.165, subdivision 3; 609.3241; 611.20, subdivision 3; Minnesota Statutes
2009 Supplement, sections 123B.54; 137.025, subdivision 1; 256B.056,
subdivision 3c; 256B.0659, subdivision 11; 256B.441, subdivision 55; 256B.69,
subdivision 5a; 256B.76, subdivision 1; 256B.766; 270.97; 289A.20, subdivision
4; 290.06, subdivision 2c; Laws 1994, chapter 531, section 1; Laws 2009,
chapter 79, article 13, sections 3, subdivision 8, as amended; 4, subdivision 4, as
amended; Laws 2009, chapter 96, article 1, section 24, subdivisions 2, 5, 6, 7;
article 2, section 67, subdivisions 2, 3, 4, 7, 9; article 3, section 21, subdivisions
2, 3, 4, 5; article 4, section 12, subdivisions 2, 3, 4, 6; article 5, section 13,
subdivisions 4, 6, 7, 9; article 6, section 11, subdivisions 2, 3, 4, 6, 7, 8, 9, 12;
article 7, section 3, subdivision 2; Laws 2010, chapter 215, article 3, section 3,
subdivision 6; article 13, section 6; proposing coding for new law in Minnesota
Statutes, chapter 477A.

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

ARTICLE 1

SUMMARY

Section 1. new text begin GENERAL FUND SUMMARY. new text end

new text begin The amounts shown in this section summarize general fund direct and open
appropriations, and transfers into the general fund from other funds, made in this act, after
forecast adjustments and after voiding certain allotment reductions.
new text end

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin E-12 Education new text end	new text begin $ new text end	new text begin (1,069,361,000) new text end	new text begin $ new text end	new text begin (686,073,000) new text end	new text begin $ new text end	new text begin (1,755,434,000) new text end
new text begin Higher Education new text end		new text begin (77,000) new text end		new text begin (100,077,000) new text end		new text begin (100,154,000) new text end
new text begin Environment and Natural Resources new text end		new text begin (1,571,000) new text end		new text begin (1,564,000) new text end		new text begin (3,135,000) new text end
new text begin Energy new text end		new text begin (247,000) new text end		new text begin (247,000) new text end		new text begin (494,000) new text end
new text begin Agriculture new text end		new text begin (493,000) new text end		new text begin (492,000) new text end		new text begin (985,000) new text end
new text begin Economic Development new text end		new text begin (745,000) new text end		new text begin (745,000) new text end		new text begin (1,490,000) new text end
new text begin Transportation new text end		new text begin (1,649,000) new text end		new text begin (1,649,000) new text end		new text begin (3,298,000) new text end
new text begin Public Safety new text end		new text begin (79,000) new text end		new text begin (79,000) new text end		new text begin (158,000) new text end
new text begin State Government new text end		new text begin (1,694,000) new text end		new text begin (1,820,000) new text end		new text begin (3,514,000) new text end
new text begin Health & Human Services new text end		new text begin (74,704,000) new text end		new text begin (75,150,000) new text end		new text begin (149,854,000) new text end
new text begin Tax Aids and Credits new text end		new text begin (103,986,000) new text end		new text begin (260,504,000) new text end		new text begin (364,490,000) new text end
new text begin Subtotal of Appropriations new text end		new text begin (1,254,530,000) new text end		new text begin (1,128,400,000) new text end		new text begin (2,382,930,000) new text end
new text begin Transfers In new text end		new text begin 40,418,000 new text end		new text begin -0- new text end		new text begin 40,418,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin (1,294,948,000) new text end	new text begin $ new text end	new text begin (1,128,400,000) new text end	new text begin $ new text end	new text begin (2,423,348,000) new text end

Sec. 2. new text begin ALLOTMENT REDUCTIONS VOID.
new text end

new text begin The allotment reductions made by the commissioner of management and budget
from July 1, 2009, to the effective date of this section are void.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

CASH FLOW

Section 1.

Minnesota Statutes 2008, section 127A.46, is amended to read:

127A.46 CHANGE IN PAYMENT OF AIDS AND CREDITS.

If the commissioner of management and budget determines that modifications in the
payment schedule would reduce the need for state short-term borrowing, the commissioner
deleted text begin shall deleted text end new text begin may new text end modify payments to districts according to this section. The modifications must
begin no sooner than September 1 of each fiscal year, and must remain in effect until no
later than May 30 of that same fiscal year. In calculating the payment to a district pursuant
to section 127A.45, subdivision 3, the commissioner may subtract the sum specified in
that subdivision, plus an additional amount no greater than the following:

(1) the net cash balance in each of the district's operating funds on June 30 of the
preceding fiscal year; minus

(2) the product of deleted text begin $150 deleted text end new text begin $700 new text end times the number of resident pupil units in the
preceding fiscal year; minus

(3) the amount of payments made by the county treasurer during the preceding fiscal
year, pursuant to section 276.11, which is considered revenue for the current school year.
However, no additional amount shall be subtracted if the total of the net unappropriated
fund balances in the district's four operating funds on June 30 of the preceding fiscal year,
is less than the product of deleted text begin $350 deleted text end new text begin $700 new text end times the number of resident pupil units in the
preceding fiscal year. The net cash balance must include all cash and investments, less
certificates of indebtedness outstanding, and orders not paid for want of funds.

A district may appeal the payment schedule established by this section according to
the procedures established in section 127A.45, subdivision 4.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 137.025, subdivision 1, is
amended to read:

Subdivision 1.

Monthly payments.

The commissioner of management and budget
shall pay 1/12 of the annual appropriation to the University of Minnesota deleted text begin on deleted text end new text begin by new text end the deleted text begin 21st deleted text end new text begin
25th new text end day of each month. If the deleted text begin 21st deleted text end new text begin 25th new text end day of the month falls on a Saturday or Sunday,
the monthly payment must be made deleted text begin on deleted text end new text begin by new text end the first business day immediately following
the deleted text begin 21st deleted text end new text begin 25th new text end day of the month.

Sec. 3.

Minnesota Statutes 2008, section 276.112, is amended to read:

276.112 STATE PROPERTY TAXES; COUNTY TREASURER.

On deleted text begin or before January 25 each year, for the period ending December 31 of the
prior year, and on or before June 28 each year, for the period ending on the most recent
settlement day determined in section 276.09, and on or before December 2 each year, for
the period ending November 20 deleted text end new text begin the estimated payment and settlement dates provided in
this chapter for the settlement of taxes levied by school districts new text end , the county treasurer must
make full settlement with the county auditor deleted text begin according to sections 276.09, 276.10, and
276.111 deleted text end for all receipts of state property taxes levied under section 275.025, and must
transmit those receipts to the commissioner of revenue by electronic means new text begin on the dates
and according to the provisions applicable to distributions to school districts new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning October
1, 2010, and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2009 Supplement, section 289A.20, subdivision 4, is
amended to read:

Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and
payable to the commissioner monthly on or before the 20th day of the month following
the month in which the taxable event occurred, or following another reporting period
as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
paragraph (f) or (g), except that new text begin :
new text end

new text begin (1) new text end use taxes due on an annual use tax return as provided under section 289A.11,
subdivision 1, are payable by April 15 following the close of the calendar year deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) except as provided in paragraph (f), for a vendor having a liability of $120,000
or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
commissioner monthly in the following manner:
new text end

new text begin (i) on or before the 14th day of the month following the month in which the taxable
event occurred, the vendor must remit to the commissioner 90 percent of the estimated
liability for the month in which the taxable event occurred; and
new text end

new text begin (ii) on or before the 20th day of the month following the month in which the taxable
event occurred, the vendor must pay any additional amount of tax not remitted on or
before the 14th day of the month following the month in which the taxable event occurred.
new text end

(b) new text begin Notwithstanding paragraph (a), new text end a vendor having a liability of $120,000 or more
during a fiscal year ending June 30 must remit the June liability for the next year in the
following manner:

(1) Two business days before June 30 of the year, the vendor must remit 90 percent
of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount
of tax not remitted in June.

(c) A vendor having a liability of:

(1) deleted text begin $20,000 or more in the fiscal year ending June 30, 2005; or
deleted text end

deleted text begin (2) deleted text end $10,000 or more deleted text begin in the deleted text end new text begin , but less than $120,000 during a new text end fiscal year ending June
30, deleted text begin 2006 deleted text end new text begin 2009 new text end , and fiscal years thereafter, must remit new text begin by electronic means new text end all liabilities on
returns due for periods beginning in the subsequent calendar year deleted text begin by electronic means deleted text end
on or before the 20th day of the month following the month in which the taxable event
occurred, or on or before the 20th day of the month following the month in which the sale
is reported under section 289A.18, subdivision 4 deleted text begin , except for 90 percent of the estimated
June liability, which is due two business days before June 30. The remaining amount of
the June liability is due on August 20. deleted text end new text begin ; or
new text end

new text begin (2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in
paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
year, except for 90 percent of the estimated June liability, which is due two business days
before June 30. The remaining amount of the June liability is due on August 20.
new text end

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
religious beliefs from paying electronically shall be allowed to remit the payment by mail.
The filer must notify the commissioner of revenue of the intent to pay by mail before
doing so on a form prescribed by the commissioner. No extra fee may be charged to a
person making payment by mail under this paragraph. The payment must be postmarked
at least two business days before the due date for making the payment in order to be
considered paid on a timely basis.

new text begin (e) Whenever the liability is $120,000 or more separately for (1) the tax imposed
under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
be accelerated as provided in this subdivision.
new text end

new text begin (f) At the start of the first calendar quarter at least 90 days after the cash flow
account established in section 16A.152, subdivision 1, and the budget reserve account
established in section 16A.152, subdivision 1a, reach the amounts listed in section
16A.152, subdivision 2, paragraph (a), the remittance of estimated sales tax collections
by the 14th day of a month required under paragraph (a), clause (2), shall be suspended.
The commissioner of management and budget shall notify the commissioner of revenue
when the accounts have reached the required amounts. Beginning with the suspension
of paragraph (a), clause (2), for a vendor with a liability of $120,000 or more during a
fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes imposed by chapter
297A are due and payable to the commissioner on the 20th day of the month following the
month in which the taxable event occurred. Payments of tax liabilities for taxable events
occurring in June under paragraph (b) are not changed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after
September 1, 2010.
new text end

Sec. 5.

Minnesota Statutes 2008, section 289A.60, is amended by adding a subdivision
to read:

new text begin Subd. 31. new text end

new text begin Accelerated payment of monthly sales tax liability; penalty for
underpayment. new text end

new text begin For payments made after September 1, 2010, if a vendor is required
by section 289A.20, subdivision 4, to remit a 90 percent payment by the 14th day of
the month following the month in which the taxable event occurred, as an estimation
of monthly sales tax liabilities, including the liability of any fee or other tax that is to
be reported on the same return as and paid with the chapter 297A taxes, for the month
in which the taxable event occurred, the vendor shall pay a penalty equal to ten percent
of the amount of liability that was required to be paid by the 14th day of the month less
the amount remitted by the 14th day of the month. The penalty must not be imposed,
however, if the amount remitted by the 14th day of the month equals the lesser of (1) 90
percent of the liability for the month preceding the month in which the taxable event
occurred; (2) 90 percent of the liability for the same month in the previous calendar year
as the month in which the taxable event occurred; or (3) 90 percent of the average monthly
liability for the previous calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after
September 1, 2010.
new text end

ARTICLE 3

E-12 EDUCATION

Section 1.

Minnesota Statutes 2008, section 123B.75, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "school district tax settlement
revenue" means the current, delinquent, and manufactured home property tax receipts
collected by the county and distributed to the school district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:

Subd. 5.

Levy recognition.

(a) deleted text begin "School district tax settlement revenue" means the
current, delinquent, and manufactured home property tax receipts collected by the county
and distributed to the school district.
deleted text end

deleted text begin (b) deleted text end For fiscal deleted text begin year 2004 and later deleted text end years new text begin 2009 and 2010 new text end , in June of each year, the
school district must recognize as revenue, in the fund for which the levy was made, the
lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or

(2) the sum of:

(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2 new text begin , paragraph
(a) new text end , and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6 new text begin ; plus
new text end

new text begin (iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii) new text end .

new text begin (b) For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:
new text end

new text begin (1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
new text end

new text begin (2) the sum of:
new text end

new text begin (i) the greater of 48.6 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus
new text end

new text begin (ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6; plus
new text end

new text begin (iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 123B.75, subdivision 9, is amended to read:

Subd. 9.

Commissioner shall specify fiscal year.

The commissioner shall specify
the fiscal year or years to which the revenue from any aid or tax levy is applicable if
Minnesota Statutes do not so specify. new text begin The commissioner must report to the chairs and
ranking minority members of the house of representatives and senate committees with
jurisdiction over education finance by January 15 of each year any adjustments under this
subdivision in the previous year.
new text end

Sec. 4.

Minnesota Statutes 2008, section 126C.48, subdivision 7, is amended to read:

Subd. 7.

Reporting.

For each tax settlement, the county auditor shall report to each
school district by fund, the district tax settlement revenue defined in section 123B.75,
subdivision deleted text begin 5 deleted text end deleted text begin , paragraph (a) deleted text end new text begin 1a new text end , on the form specified in section 276.10. The county auditor
shall send to the district a copy of the spread levy report specified in section 275.124.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009.
new text end

Sec. 5.

Minnesota Statutes 2008, section 127A.441, is amended to read:

127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph new text begin (a) or new text end (b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph new text begin (a) or new text end (b). For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
be adjusted pursuant to this section. The school district shall be notified of the amount of
the adjustment made to each payment pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009.
new text end

Sec. 6.

Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) deleted text begin The term deleted text end "Other district receipts" means payments by
county treasurers pursuant to section 276.10, apportionments from the school endowment
fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
section 127A.34, subdivision 2, and payments to school districts by the commissioner of
revenue pursuant to chapter 298.

(b) deleted text begin The term deleted text end "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) deleted text begin The term deleted text end "Payment date" means the date on which state payments to districts
are made by the electronic funds transfer method. If a payment date falls on a Saturday,
a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
immediately preceding business day. The commissioner may make payments on dates
other than those listed in subdivision 3, but only for portions of payments from any
preceding payment dates which could not be processed by the electronic funds transfer
method due to documented extenuating circumstances.

(d) The current year aid payment percentage equals new text begin 73 in fiscal years 2010 and
2011 and new text end 90 new text begin in fiscal years 2012 and later new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009.
new text end

Sec. 7.

Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:

Subd. 13.

Aid payment percentage.

Except as provided in subdivisions 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. deleted text begin For the purposes of this subdivision, a district's estimated
entitlement for special education excess cost aid under section 125A.79 for fiscal year
2005 equals 70 percent of the district's entitlement for the second prior fiscal year. deleted text end For the
purposes of this subdivision, a district's estimated entitlement for special education excess
cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
district's entitlement for the current fiscal year. The final adjustment payment, according
to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the entitlement.

Sec. 8.

Laws 2009, chapter 96, article 1, section 24, subdivision 2, is amended to read:

Subd. 2.

General education aid.

For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

	$	deleted text begin 5,195,504,000 deleted text end new text begin 4,291,422,000 new text end	.....	2010
	$	deleted text begin 5,626,994,000 deleted text end new text begin 4,947,948,000 new text end	.....	2011

The 2010 appropriation includes deleted text begin $555,864,000 deleted text end new text begin $553,591,000 new text end for 2009 and
deleted text begin $4,639,640,000 deleted text end new text begin $3,737,831,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $500,976,000 deleted text end new text begin $1,363,306,000 new text end for 2010 and
deleted text begin $5,126,018,000 deleted text end new text begin $3,584,642,000 new text end for 2011.

Sec. 9.

Laws 2009, chapter 96, article 6, section 11, subdivision 6, is amended to read:

Subd. 6.

Educate parents partnership.

For the educate parents partnership under
Minnesota Statutes, section 124D.129:

	$	deleted text begin 50,000 deleted text end new text begin 49,000 new text end	.....	2010
	$	deleted text begin 50,000 deleted text end new text begin 49,000 new text end	.....	2011

Any balance in the first year does not cancel but is available in the second year.

Sec. 10.

Laws 2009, chapter 96, article 6, section 11, subdivision 7, is amended to read:

Subd. 7.

Kindergarten entrance assessment initiative and intervention
program.

For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:

	$	deleted text begin 287,000 deleted text end new text begin 281,000 new text end	.....	2010
	$	deleted text begin 287,000 deleted text end new text begin 281,000 new text end	.....	2011

Any balance in the first year does not cancel but is available in the second year.

Sec. 11.

Laws 2009, chapter 96, article 7, section 3, subdivision 2, is amended to read:

Subd. 2.

Department.

(a) For the Department of Education:

	$	deleted text begin 20,943,000 deleted text end new text begin 20,147,600 new text end	.....	2010
	$	deleted text begin 20,943,000 deleted text end new text begin 19,811,000 new text end	.....	2011

Any balance in the first year does not cancel but is available in the second year.

(b) $260,000 each year is for the Minnesota Children's Museum.

(c) $41,000 each year is for the Minnesota Academy of Science.

(d) deleted text begin $632,000 deleted text end new text begin $618,000 new text end each year is for the Board of Teaching. Any balance in the
first year does not cancel but is available in the second year.

(e) deleted text begin $171,000 deleted text end new text begin $167,000 new text end each year is for the Board of School Administrators. Any
balance in the first year does not cancel but is available in the second year.

(f) deleted text begin $40,000 each year deleted text end new text begin $10,000 new text end is for an early hearing loss intervention coordinator
under Minnesota Statutes, section 125A.63, subdivision 5. new text begin This appropriation is for
fiscal year 2010 only. new text end If the department expends federal funds to employ a hearing
loss coordinator under Minnesota Statutes, section 125A.63, subdivision 5, then the
appropriation under this paragraph is reallocated for purposes of employing a world
languages coordinator.

(g) $50,000 each year is for the Duluth Children's Museum.

(h) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C., office.

(i) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated. The commissioner must provide, to the K-12 Education Finance Division in
the house of representatives and the E-12 Budget Division in the senate, details about the
distribution of state incentive grants, education technology state grants, teacher incentive
funds, and statewide data system funds as outlined in the supplemental federal funds
submission dated March 25, 2009.

Sec. 12. new text begin ADVANCE FINAL PAYMENT; FISCAL YEARS 2010 AND 2011.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 127A.45, subdivisions 3 and
7, for fiscal years 2010 and 2011 only, a school district or charter school exceeding its
expenditure limitations under Minnesota Statutes, section 123B.83, as of June 30, 2009, or
June 30, 2010, may receive a portion of its final payment for the current fiscal year on
June 20, if requested by the district or charter school. The amount paid under this section
must not exceed the lesser of:
new text end

new text begin (1) the difference between 90 percent and the current year aid payment percentage
under Minnesota Statutes, section 127A.45, subdivision 2, paragraph (d), in the current
fiscal year times the sum of the district or charter school's general education aid plus the
aid adjustment in Minnesota Statutes, section 127A.50, for the current fiscal year; or
new text end

new text begin (2) the amount by which the district or charter school's net negative unreserved
general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
district or charter school's expenditures for that fiscal year.
new text end

new text begin (b) The state total advance final payment under this subdivision for any fiscal year
must not exceed $7,500,000. If the amount exceeds $7,500,000, the advance final payment
for each eligible district must be reduced proportionately.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009.
new text end

ARTICLE 4

E-12 EDUCATION FORECAST ADJUSTMENTS

Section 1.

Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $9,109,000 in fiscal year 2009, $7,948,000 in fiscal year 2010, $9,275,000 in
fiscal year 2011, $9,574,000 deleted text end new text begin $16,900,000 new text end in fiscal year 2012, and deleted text begin $8,904,000 deleted text end new text begin $19,175,000 new text end
in fiscal year 2013 and later are appropriated from the general fund to the commissioner of
education for payment of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

Sec. 2.

Laws 2009, chapter 96, article 1, section 24, subdivision 5, is amended to read:

Subd. 5.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

	$	deleted text begin 854,000 deleted text end new text begin 684,000 new text end	.....	2010
	$	deleted text begin 927,000 deleted text end new text begin 590,000 new text end	.....	2011

The 2010 appropriation includes $0 for 2009 and deleted text begin $854,000 deleted text end new text begin $684,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $94,000 deleted text end new text begin $252,000 new text end for 2010 and deleted text begin $833,000 deleted text end new text begin $338,000 new text end
for 2011.

Sec. 3.

Laws 2009, chapter 96, article 1, section 24, subdivision 6, is amended to read:

Subd. 6.

Nonpublic pupil education aid.

For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

	$	deleted text begin 17,250,000 deleted text end new text begin 12,861,000 new text end	.....	2010
	$	deleted text begin 17,889,000 deleted text end new text begin 16,663,000 new text end	.....	2011

The 2010 appropriation includes deleted text begin $1,647,000 deleted text end new text begin $1,067,000 new text end for 2009 and deleted text begin $15,603,000 deleted text end new text begin
$11,794,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $1,733,000 deleted text end new text begin $4,362,000 new text end for 2010 and deleted text begin $16,156,000 deleted text end new text begin
$12,301,000 new text end for 2011.

Sec. 4.

Laws 2009, chapter 96, article 1, section 24, subdivision 7, is amended to read:

Subd. 7.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

	$	deleted text begin 22,159,000 deleted text end new text begin 17,297,000 new text end	.....	2010
	$	deleted text begin 22,712,000 deleted text end new text begin 20,333,000 new text end	.....	2011

The 2010 appropriation includes $2,077,000 for 2009 and deleted text begin $20,082,000 deleted text end new text begin $15,220,000
new text end for 2010.

The 2011 appropriation includes deleted text begin $2,231,000 deleted text end new text begin $5,629,000 new text end for 2010 and deleted text begin $20,481,000 deleted text end new text begin
$14,704,000 new text end for 2011.

Sec. 5.

Laws 2009, chapter 96, article 2, section 67, subdivision 2, is amended to read:

Subd. 2.

Charter school building lease aid.

For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

	$	deleted text begin 40,453,000 deleted text end new text begin 34,833,000 new text end	.....	2010
	$	deleted text begin 44,775,000 deleted text end new text begin 46,370,000 new text end	.....	2011

The 2010 appropriation includes $3,704,000 for 2009 and deleted text begin $36,749,000 deleted text end new text begin $31,129,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $4,083,000 deleted text end new text begin $11,513,000 new text end for 2010 and deleted text begin $40,692,000 deleted text end new text begin
$34,857,000 new text end for 2011.

Sec. 6.

Laws 2009, chapter 96, article 2, section 67, subdivision 3, is amended to read:

Subd. 3.

Charter school startup aid.

For charter school startup cost aid under
Minnesota Statutes, section 124D.11:

	$	deleted text begin 1,488,000 deleted text end new text begin 1,218,000 new text end	.....	2010
	$	deleted text begin 1,064,000 deleted text end new text begin 759,000 new text end	.....	2011

The 2010 appropriation includes $202,000 for 2009 and deleted text begin $1,286,000 deleted text end new text begin $1,016,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $142,000 deleted text end new text begin $375,000 new text end for 2010 and deleted text begin $922,000 deleted text end new text begin
$384,000 new text end for 2011.

Sec. 7.

Laws 2009, chapter 96, article 2, section 67, subdivision 4, is amended to read:

Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:

	$	deleted text begin 65,358,000 deleted text end new text begin 50,812,000 new text end	.....	2010
	$	deleted text begin 65,484,000 deleted text end new text begin 63,717,000 new text end	.....	2011

The 2010 appropriation includes deleted text begin $6,110,000 deleted text end new text begin $5,832,000 new text end for 2009 and deleted text begin $59,248,000 deleted text end new text begin
$44,980,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $6,583,000 deleted text end new text begin $16,636,000 new text end for 2010 and deleted text begin $58,901,000 deleted text end new text begin
$47,081,000 new text end for 2011.

Sec. 8.

Laws 2009, chapter 96, article 2, section 67, subdivision 7, is amended to read:

Subd. 7.

Success for the future.

For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:

	$	deleted text begin 2,137,000 deleted text end new text begin 1,774,000 new text end	.....	2010
	$	2,137,000	.....	2011

The 2010 appropriation includes $213,000 for 2009 and deleted text begin $1,924,000 deleted text end new text begin $1,561,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $213,000 deleted text end new text begin $576,000 new text end for 2010 and deleted text begin $1,924,000 deleted text end new text begin
$1,561,000 new text end for 2011.

Sec. 9.

Laws 2009, chapter 96, article 2, section 67, subdivision 9, is amended to read:

Subd. 9.

Tribal contract schools.

For tribal contract school aid under Minnesota
Statutes, section 124D.83:

	$	deleted text begin 2,030,000 deleted text end new text begin 1,702,000 new text end	.....	2010
	$	deleted text begin 2,211,000 deleted text end new text begin 2,186,000 new text end	.....	2011

The 2010 appropriation includes $191,000 for 2009 and deleted text begin $1,839,000 deleted text end new text begin $1,511,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $204,000 deleted text end new text begin $558,000 new text end for 2010 and deleted text begin $2,007,000 deleted text end new text begin
$1,628,000 new text end for 2011.

Sec. 10.

Laws 2009, chapter 96, article 3, section 21, subdivision 2, is amended to read:

Subd. 2.

Special education; regular.

For special education aid under Minnesota
Statutes, section 125A.75:

	$	deleted text begin 734,071,000 deleted text end new text begin 609,003,000 new text end	.....	2010
	$	deleted text begin 781,497,000 deleted text end new text begin 772,845,000 new text end	.....	2011

The 2010 appropriation includes $71,947,000 for 2009 and deleted text begin $662,124,000 deleted text end new text begin
$537,056,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $73,569,000 deleted text end new text begin $198,637,000 new text end for 2010 and
deleted text begin $707,928,000 deleted text end new text begin $574,208,000 new text end for 2011.

Sec. 11.

Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:

Subd. 3.

Aid for children with disabilities.

For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

	$	deleted text begin 1,717,000 deleted text end new text begin 1,125,000 new text end	.....	2010
	$	deleted text begin 1,895,000 deleted text end new text begin 1,193,000 new text end	.....	2011

If the appropriation for either year is insufficient, the appropriation for the other
year is available.

Sec. 12.

Laws 2009, chapter 96, article 3, section 21, subdivision 4, is amended to read:

Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

	$	deleted text begin 258,000 deleted text end new text begin 224,000 new text end	.....	2010
	$	deleted text begin 282,000 deleted text end new text begin 291,000 new text end	.....	2011

The 2010 appropriation includes $24,000 for 2009 and deleted text begin $234,000 deleted text end new text begin $200,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $26,000 deleted text end new text begin $73,000 new text end for 2010 and deleted text begin $256,000 deleted text end new text begin $218,000 new text end
for 2011.

Sec. 13.

Laws 2009, chapter 96, article 3, section 21, subdivision 5, is amended to read:

Subd. 5.

Special education; excess costs.

For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:

	$	deleted text begin 110,871,000 deleted text end new text begin 96,926,000 new text end	.....	2010
	$	deleted text begin 110,877,000 deleted text end new text begin 110,871,000 new text end	.....	2011

The 2010 appropriation includes $37,046,000 for 2009 and deleted text begin $73,825,000 deleted text end new text begin $59,880,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $37,022,000 deleted text end new text begin $50,967,000 new text end for 2010 and deleted text begin $73,855,000 deleted text end new text begin
$59,904,000 new text end for 2011.

Sec. 14.

Laws 2009, chapter 96, article 4, section 12, subdivision 2, is amended to read:

Subd. 2.

Health and safety revenue.

For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

	$	deleted text begin 161,000 deleted text end new text begin 132,000 new text end	.....	2010
	$	deleted text begin 160,000 deleted text end new text begin 139,000 new text end	.....	2011

The 2010 appropriation includes $10,000 for 2009 and deleted text begin $151,000 deleted text end new text begin $122,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $16,000 deleted text end new text begin $44,000 new text end for 2010 and deleted text begin $144,000 deleted text end new text begin $95,000 new text end
for 2011.

Sec. 15.

Laws 2009, chapter 96, article 4, section 12, subdivision 3, is amended to read:

Subd. 3.

Debt service equalization.

For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:

	$	deleted text begin 7,948,000 deleted text end new text begin 6,608,000 new text end	.....	2010
	$	deleted text begin 9,275,000 deleted text end new text begin 8,465,000 new text end	.....	2011

The 2010 appropriation includes $851,000 for 2009 and deleted text begin $7,097,000 deleted text end new text begin $5,757,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $788,000 deleted text end new text begin $2,128,000 new text end for 2010 and deleted text begin $8,487,000 deleted text end new text begin
$6,337,000 new text end for 2011.

Sec. 16.

Laws 2009, chapter 96, article 4, section 12, subdivision 4, is amended to read:

Subd. 4.

Alternative facilities bonding aid.

For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:

	$	deleted text begin 19,287,000 deleted text end new text begin 16,008,000 new text end	.....	2010
	$	19,287,000	.....	2011

The 2010 appropriation includes $1,928,000 for 2009 and deleted text begin $17,359,000 deleted text end new text begin $14,080,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $1,928,000 deleted text end new text begin $5,207,000 new text end for 2010 and deleted text begin $17,359,000 deleted text end new text begin
$14,080,000 new text end for 2011.

Sec. 17.

Laws 2009, chapter 96, article 4, section 12, subdivision 6, is amended to read:

Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

	$	deleted text begin 2,302,000 deleted text end new text begin 1,918,000 new text end	.....	2010
	$	deleted text begin 2,073,000 deleted text end new text begin 2,211,000 new text end	.....	2011

The 2010 appropriation includes $260,000 for 2009 and deleted text begin $2,042,000 deleted text end new text begin $1,658,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $226,000 deleted text end new text begin $613,000 new text end for 2010 and deleted text begin $1,847,000 deleted text end new text begin
$1,598,000 new text end for 2011.

Sec. 18.

Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read:

Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

	$	deleted text begin 1,098,000 deleted text end new text begin 1,104,000 new text end	.....	2010
	$	deleted text begin 1,120,000 deleted text end new text begin 1,126,000 new text end	.....	2011

Sec. 19.

Laws 2009, chapter 96, article 5, section 13, subdivision 6, is amended to read:

Subd. 6.

Basic system support.

For basic system support grants under Minnesota
Statutes, section 134.355:

	$	deleted text begin 13,570,000 deleted text end new text begin 11,264,000 new text end	.....	2010
	$	13,570,000	.....	2011

The 2010 appropriation includes $1,357,000 for 2009 and deleted text begin $12,213,000 deleted text end new text begin $9,907,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $1,357,000 deleted text end new text begin $3,663,000 new text end for 2010 and deleted text begin $12,213,000 deleted text end new text begin
$9,907,000 new text end for 2011.

Sec. 20.

Laws 2009, chapter 96, article 5, section 13, subdivision 7, is amended to read:

Subd. 7.

Multicounty, multitype library systems.

For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

	$	deleted text begin 1,300,000 deleted text end new text begin 1,079,000 new text end	.....	2010
	$	1,300,000	.....	2011

The 2010 appropriation includes $130,000 for 2009 and deleted text begin $1,170,000 deleted text end new text begin $949,000 new text end for
2010.

The 2011 appropriation includes deleted text begin $130,000 deleted text end new text begin $351,000 new text end for 2010 and deleted text begin $1,170,000 deleted text end new text begin
$949,000 new text end for 2011.

Sec. 21.

Laws 2009, chapter 96, article 5, section 13, subdivision 9, is amended to read:

Subd. 9.

Regional library telecommunications aid.

For regional library
telecommunications aid under Minnesota Statutes, section 134.355:

	$	deleted text begin 2,300,000 deleted text end new text begin 1,909,000 new text end	.....	2010
	$	2,300,000	.....	2011

The 2010 appropriation includes $230,000 for 2009 and deleted text begin $2,070,000 deleted text end new text begin $1,679,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $230,000 deleted text end new text begin $621,000 new text end for 2010 and deleted text begin $2,070,000 deleted text end new text begin
$1,679,000 new text end for 2011.

Sec. 22.

Laws 2009, chapter 96, article 6, section 11, subdivision 2, is amended to read:

Subd. 2.

School readiness.

For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

	$	deleted text begin 10,095,000 deleted text end new text begin 8,379,000 new text end	.....	2010
	$	10,095,000	.....	2011

The 2010 appropriation includes $1,009,000 for 2009 and deleted text begin $9,086,000 deleted text end new text begin $7,370,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $1,009,000 deleted text end new text begin $2,725,000 new text end for 2010 and deleted text begin $9,086,000 deleted text end new text begin
$7,370,000 new text end for 2011.

Sec. 23.

Laws 2009, chapter 96, article 6, section 11, subdivision 3, is amended to read:

Subd. 3.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

	$	deleted text begin 22,955,000 deleted text end new text begin 19,005,000 new text end	.....	2010
	$	deleted text begin 22,547,000 deleted text end new text begin 22,126,000 new text end	.....	2011

The 2010 appropriation includes $3,020,000 for 2009 and deleted text begin $19,935,000 deleted text end new text begin $15,985,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $2,214,000 deleted text end new text begin $5,911,000 new text end for 2010 and deleted text begin $20,333,000 deleted text end new text begin
$16,215,000 new text end for 2011.

Sec. 24.

Laws 2009, chapter 96, article 6, section 11, subdivision 4, is amended to read:

Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

	$	deleted text begin 3,694,000 deleted text end new text begin 2,922,000 new text end	.....	2010
	$	deleted text begin 3,800,000 deleted text end new text begin 3,531,000 new text end	.....	2011

The 2010 appropriation includes $367,000 for 2009 and deleted text begin $3,327,000 deleted text end new text begin $2,555,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $369,000 deleted text end new text begin $945,000 new text end for 2010 and deleted text begin $3,431,000 deleted text end new text begin
$2,586,000 new text end for 2011.

Sec. 25.

Laws 2009, chapter 96, article 6, section 11, subdivision 8, is amended to read:

Subd. 8.

Community education aid.

For community education aid under
Minnesota Statutes, section 124D.20:

	$	deleted text begin 585,000 deleted text end new text begin 476,000 new text end	.....	2010
	$	deleted text begin 467,000 deleted text end new text begin 486,000 new text end	.....	2011

The 2010 appropriation includes $73,000 for 2009 and deleted text begin $512,000 deleted text end new text begin $403,000 new text end for 2010.

The 2011 appropriation included deleted text begin $56,000 deleted text end new text begin $148,000 new text end for 2010 and deleted text begin $411,000 deleted text end new text begin $338,000 new text end
for 2011.

Sec. 26.

Laws 2009, chapter 96, article 6, section 11, subdivision 9, is amended to read:

Subd. 9.

Adults with disabilities program aid.

For adults with disabilities
programs under Minnesota Statutes, section 124D.56:

	$	deleted text begin 710,000 deleted text end new text begin 588,000 new text end	.....	2010
	$	710,000	.....	2011

The 2010 appropriation includes deleted text begin $71,000 deleted text end new text begin $69,000 new text end for 2009 and deleted text begin $639,000 deleted text end new text begin $519,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $71,000 deleted text end new text begin $191,000 new text end for 2010 and deleted text begin $639,000 deleted text end new text begin $519,000 new text end
for 2011.

Sec. 27.

Laws 2009, chapter 96, article 6, section 11, subdivision 12, is amended to
read:

Subd. 12.

Adult basic education aid.

For adult basic education aid under
Minnesota Statutes, section 124D.531:

	$	deleted text begin 42,975,000 deleted text end new text begin 35,671,000 new text end	.....	2010
	$	deleted text begin 44,258,000 deleted text end new text begin 44,065,000 new text end	.....	2011

The 2010 appropriation includes $4,187,000 for 2009 and deleted text begin $38,788,000 deleted text end new text begin $31,484,000 new text end
for 2010.

The 2011 appropriation includes deleted text begin $4,309,000 deleted text end new text begin $11,644,000 new text end for 2010 and deleted text begin $39,949,000 deleted text end new text begin
$32,421,000 new text end for 2011.

ARTICLE 5

HIGHER EDUCATION

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (77,000) new text end	new text begin $ new text end	new text begin (100,077,000) new text end	new text begin $ new text end	new text begin (100,154,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

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

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin MINNESOTA OFFICE OF HIGHER EDUCATION new text end

new text begin $ new text end

new text begin (77,000) new text end

new text begin $ new text end

new text begin (77,000) new text end

new text begin This reduction is from the appropriation for
agency administration.
new text end

new text begin If an extension of the enhanced federal
medical assistance percentage (FMAP) under
Public Law 111-5, section 5001, to at least
June 30, 2011, is enacted by June 15, 2010,
$36,000,000 is appropriated from the general
fund to the Minnesota Office of Higher
Education for the state grant program, to be
available for the fiscal year ending June 30,
2011.
new text end

Sec. 4. new text begin BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (50,000,000) new text end

new text begin $3,579,000 of the reduction in 2011 is from
the central offices and shared services unit
appropriation.
new text end

new text begin $46,421,000 of the reduction in 2011
is from the operations and maintenance
appropriation.
new text end

new text begin For fiscal years 2012 and 2013, the base for
operations and maintenance is $580,802,000
each year.
new text end

Sec. 5. new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

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

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (50,000,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end

new text begin -0- new text end

new text begin (44,606,000) new text end

new text begin For fiscal years 2012 and 2013, the base for
operations and maintenance is $578,370,000
each year.
new text end

new text begin Subd. 3. new text end new text begin Special Appropriations new text end

new text begin (a) Agriculture and Extension Service new text end

new text begin -0- new text end

new text begin (3,858,000) new text end

new text begin (b) Health Sciences new text end

new text begin -0- new text end

new text begin (389,000) new text end

new text begin $26,000 of the 2011 reduction is from the St.
Cloud family practice residency program.
new text end

new text begin (c) Institute of Technology new text end

new text begin -0- new text end

new text begin (102,000) new text end

new text begin (d) System Special new text end

new text begin -0- new text end

new text begin (454,000) new text end

new text begin (e) University of Minnesota and Mayo Foundation Partnership new text end

new text begin -0- new text end

new text begin (591,000) new text end

ARTICLE 6

ENVIRONMENT AND NATURAL RESOURCES

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

new text begin The amounts shown in this section summarize changes to direct appropriations, by
fund, made in this article.
new text end

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (1,571,000) new text end	new text begin $ new text end	new text begin (1,564,000) new text end	new text begin $ new text end	new text begin (3,135,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition to
or subtraction from the appropriation listed under them are available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin POLLUTION CONTROL AGENCY new text end

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

new text begin $ new text end

new text begin (110,000) new text end

new text begin $ new text end

new text begin (99,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Water new text end

new text begin (98,000) new text end

new text begin (38,000) new text end

new text begin The $98,000 reduction in fiscal year 2010
is from the agency's activities to develop
minimal impact design standards for urban
stormwater runoff.
new text end

new text begin Subd. 3. new text end new text begin Land new text end

new text begin -0- new text end

new text begin (30,000) new text end

new text begin The $30,000 reduction in the second year is
from the environmental health tracking and
biomonitoring activities of the agency.
new text end

new text begin Subd. 4. new text end new text begin Environmental Assistance and Cross Media new text end

new text begin -0- new text end

new text begin (16,000) new text end

new text begin Subd. 5. new text end new text begin Administrative Support new text end

new text begin (12,000) new text end

new text begin (15,000) new text end

Sec. 4. new text begin NATURAL RESOURCES new text end

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

new text begin $ new text end

new text begin (1,375,000) new text end

new text begin $ new text end

new text begin (1,379,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Lands and Minerals new text end

new text begin (30,000) new text end

new text begin (30,000) new text end

new text begin Subd. 3. new text end new text begin Water Resources Management new text end

new text begin (84,000) new text end

new text begin (84,000) new text end

new text begin Subd. 4. new text end new text begin Forest Management new text end

new text begin (188,000) new text end

new text begin (188,000) new text end

new text begin $53,000 of the reduction each year is from
activities supporting the Forest Resources
Council with implementation of the
Sustainable Forest Resources Act.
new text end

new text begin Subd. 5. new text end new text begin Parks and Trails Management new text end

new text begin (420,000) new text end

new text begin (422,000) new text end

new text begin Subd. 6. new text end new text begin Fish and Wildlife Management new text end

new text begin (265,000) new text end

new text begin (265,000) new text end

new text begin $265,000 of the reduction each year is from
activities for preserving, restoring, and
enhancing grassland/wetland complexes on
public or private land.
new text end

new text begin Subd. 7. new text end new text begin Ecological Services new text end

new text begin (46,000) new text end

new text begin (47,000) new text end

new text begin Subd. 8. new text end new text begin Enforcement new text end

new text begin (230,000) new text end

new text begin (230,000) new text end

new text begin Subd. 9. new text end new text begin Operations Support new text end

new text begin (112,000) new text end

new text begin (113,000) new text end

Sec. 5. new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end

new text begin (86,000) new text end

new text begin $ new text end

new text begin (86,000) new text end

Sec. 6.

Laws 2010, chapter 215, article 3, section 3, subdivision 6, is amended to read:

Subd. 6. Transfers In

(a) The amounts appropriated from the
agency indirect costs account in the special
revenue fund are reduced by $328,000 in
fiscal year 2010 and $462,000 in fiscal year
2011, and those amounts must be transferred
to the general fund by June 30, 2011. The
appropriation reductions are onetime.

(b) The commissioner of management and
budget shall transfer deleted text begin $8,000,000 deleted text end new text begin $48,000,000 new text end
in fiscal year 2011 from the closed landfill
investment fund in Minnesota Statutes,
section 115B.421, to the general fund. The
commissioner shall transfer deleted text begin $4,000,000 deleted text end new text begin
$12,000,000 new text end on July 1 deleted text begin , 2013, and $4,000,000
on July 1, deleted text end new text begin in each of the years new text end 2014, new text begin 2015,
2016, and 2017 new text end from the general fund to the
closed landfill investment fund. For deleted text begin the July
1, 2014, deleted text end new text begin each new text end transfer to the closed landfill
investment fund, the commissioner shall
determine the total amount of interest and
other earnings that would have accrued to
the fund if the transfers to the general fund
under this paragraph had not been made and
add this amount to the transfer. The amounts
necessary for these transfers are appropriated
from the general fund in the fiscal years
specified for the transfers.

ARTICLE 7

ENERGY

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (247,000) new text end	new text begin $ new text end	new text begin (247,000) new text end	new text begin $ new text end	new text begin (494,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 2, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin DEPARTMENT OF COMMERCE new text end

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

new text begin $ new text end

new text begin (247,000) new text end

new text begin $ new text end

new text begin (247,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Administrative Services new text end

new text begin (97,000) new text end

new text begin (97,000) new text end

new text begin Subd. 3. new text end new text begin Market Assurance new text end

new text begin (150,000) new text end

new text begin (150,000) new text end

ARTICLE 8

AGRICULTURE

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (493,000) new text end	new text begin $ new text end	new text begin (492,000) new text end	new text begin $ new text end	new text begin (985,000) new text end

Sec. 2. new text begin AGRICULTURAL APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition to
or subtraction from the appropriations listed under them are available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin DEPARTMENT OF AGRICULTURE new text end

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

new text begin $ new text end

new text begin (493,000) new text end

new text begin $ new text end

new text begin (492,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Protection Services new text end

new text begin (228,000) new text end

new text begin (228,000) new text end

new text begin $13,000 in fiscal year 2010 and $13,000 in
fiscal year 2011 are reductions from plant
pest surveys.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin (127,000) new text end

new text begin (127,000) new text end

new text begin $77,000 in fiscal year 2010 and $77,000 in
fiscal year 2011 are reductions for integrated
pest management activities.
new text end

new text begin Subd. 4. new text end new text begin Administration and Financial Assistance new text end

new text begin (138,000) new text end

new text begin (137,000) new text end

new text begin $69,000 in fiscal year 2010 and $69,000 in
fiscal year 2011 are reductions from the dairy
and profitability enhancement and dairy
business planning grant programs established
under Laws 1997, chapter 216, section 7,
subdivision 2, and Laws 2001, First Special
Session chapter 2, section 9, subdivision 2.
new text end

new text begin $1,000 in fiscal year 2010 is a reduction from
the appropriation for the administration of
the Feeding Minnesota Task Force.
new text end

ARTICLE 9

ECONOMIC DEVELOPMENT

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (489,000) new text end	new text begin $ new text end	new text begin (745,000) new text end	new text begin $ new text end	new text begin (1,234,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

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

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

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

new text begin $ new text end

new text begin (285,000) new text end

new text begin $ new text end

new text begin (285,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

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

new text begin (87,000) new text end

new text begin (87,000) new text end

new text begin $25,000 in 2010 and $25,000 in 2011 are
from the appropriation for the Office of
Science and Technology.
new text end

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

new text begin (115,000) new text end

new text begin (115,000) new text end

new text begin $15,000 in 2010 and $15,000 in 2011 are
from the appropriation for the Minnesota job
skills partnership program under Minnesota
Statutes, sections 116L.01 to 116L.17.
new text end

new text begin $11,000 in 2010 and $11,000 in 2011 are from
the appropriation for administrative expenses
to programs that provide employment
support services to persons with mental
illness under Minnesota Statutes, sections
268A.13 and 268A.14.
new text end

new text begin $89,000 in 2010 and $89,000 in 2011 are
from the appropriation for state services for
the blind activities.
new text end

new text begin Subd. 4. new text end new text begin State-Funded Administration new text end

new text begin (83,000) new text end

new text begin (83,000) new text end

Sec. 4. new text begin HOUSING FINANCE AGENCY new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (256,000) new text end

new text begin This reduction is from the appropriation to
the Housing Finance Agency for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14,
for rental housing developments.
new text end

new text begin On or before June 30, 2010, the Housing
Finance Agency shall transfer $256,000
from the housing rehabilitation program in
the housing development fund to the general
fund.
new text end

Sec. 5. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end

new text begin (20,000) new text end

new text begin $ new text end

new text begin (20,000) new text end

new text begin This reduction is from the general
fund appropriation for labor
standards/apprenticeship.
new text end

Sec. 6. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin (16,000) new text end

new text begin $ new text end

new text begin (16,000) new text end

new text begin This reduction is from the general fund
appropriation for mediation services.
new text end

Sec. 7. new text begin MINNESOTA HISTORICAL SOCIETY new text end

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

new text begin $ new text end

new text begin (168,000) new text end

new text begin $ new text end

new text begin (168,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Education and Outreach new text end

new text begin (96,000) new text end

new text begin (96,000) new text end

new text begin Subd. 3. new text end new text begin Preservation and Access new text end

new text begin (72,000) new text end

new text begin (72,000) new text end

ARTICLE 10

TRANSPORTATION

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (1,649,000) new text end	new text begin $ new text end	new text begin (1,649,000) new text end	new text begin $ new text end	new text begin (3,298,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 36, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition to
or subtraction from the appropriation listed under them are available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin TRANSPORTATION new text end

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

new text begin $ new text end

new text begin (24,000) new text end

new text begin $ new text end

new text begin (24,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Multimodal Systems new text end

new text begin (a) new text end new text begin Transit new text end

new text begin (9,000) new text end

new text begin (9,000) new text end

new text begin This reduction is to the Transit Improvement
Administration appropriation.
new text end

new text begin The base appropriation from the general fund
for fiscal years 2012 and 2013 is $16,292,000
each year.
new text end

new text begin (b) new text end new text begin Freight new text end

new text begin (9,000) new text end

new text begin (9,000) new text end

new text begin This reduction is to the rail service plan
appropriation.
new text end

new text begin (c) new text end new text begin Electronic Communication new text end

new text begin (6,000) new text end

new text begin (6,000) new text end

new text begin This reduction is to the Roosevelt Tower
appropriation.
new text end

Sec. 4. new text begin METROPOLITAN COUNCIL new text end

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

new text begin $ new text end

new text begin (1,625,000) new text end

new text begin $ new text end

new text begin (1,625,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Bus Transit new text end

new text begin (1,506,000) new text end

new text begin (1,506,000) new text end

new text begin This reduction is to the appropriation for bus
system operations.
new text end

new text begin The base appropriation for fiscal years 2012
and 2013 is $59,796,000 each year.
new text end

new text begin Subd. 3. new text end new text begin Rail Operations new text end

new text begin (119,000) new text end

new text begin (119,000) new text end

new text begin This reduction is to the appropriation for rail
systems.
new text end

new text begin The base appropriation for fiscal years 2012
and 2013 is $5,174,000 each year.
new text end

ARTICLE 11

PUBLIC SAFETY

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (79,000) new text end	new text begin $ new text end	new text begin (79,000) new text end	new text begin $ new text end	new text begin (158,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin HUMAN RIGHTS new text end

new text begin $ new text end

new text begin (79,000) new text end

new text begin $ new text end

new text begin (79,000) new text end

ARTICLE 12

STATE GOVERNMENT

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (1,694,000) new text end	new text begin $ new text end	new text begin (1,820,000) new text end	new text begin $ new text end	new text begin (3,514,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from, the appropriations in Laws 2009, chapter 101, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin GOVERNOR AND LIEUTENANT GOVERNOR new text end

new text begin $ new text end

new text begin (81,000) new text end

new text begin $ new text end

new text begin (81,000) new text end

new text begin $13,000 of the reduction in each of
fiscal years 2010 and 2011 are from the
appropriation for necessary expenses in the
normal performance of the governor's and
lieutenant governor's duties for which no
other reimbursement is provided.
new text end

Sec. 4. new text begin OFFICE OF ENTERPRISE TECHNOLOGY new text end

new text begin $ new text end

new text begin (130,000) new text end

new text begin $ new text end

new text begin (130,000) new text end

new text begin $96,000 of the reduction in each of
fiscal years 2010 and 2011 are from the
appropriation for information technology
security.
new text end

Sec. 5. new text begin ADMINISTRATION new text end

new text begin $ new text end

new text begin (100,000) new text end

new text begin $ new text end

new text begin (200,000) new text end

new text begin These reductions are from the Government
and Citizen Services Program.
new text end

new text begin $162,000 of the balance in the central stores
fund is transferred to the general fund on
or before June 30, 2010. This is a onetime
transfer.
new text end

new text begin The base appropriation from the general fund
for the Government and Citizen Services
Program for fiscal years 2012 and 2013 is
$17,316,000 each year.
new text end

Sec. 6. new text begin MANAGEMENT AND BUDGET new text end

new text begin $ new text end

new text begin (459,000) new text end

new text begin $ new text end

new text begin (459,000) new text end

Sec. 7. new text begin REVENUE new text end

new text begin $ new text end

new text begin (924,000) new text end

new text begin $ new text end

new text begin (950,000) new text end

new text begin These reductions are from the tax system
management program.
new text end

ARTICLE 13

HEALTH AND HUMAN SERVICES

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

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

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (74,704,000) new text end	new text begin $ new text end	new text begin (75,150,000) new text end	new text begin $ new text end	new text begin (149,854,000) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13,
as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes
specified in this article. The appropriations are from the general fund and are available
for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in
this article mean that the addition to or subtraction from the appropriation listed under
them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
Supplemental appropriations and reductions to appropriations for the fiscal year ending
June 30, 2010, are effective the day following final enactment unless a different effective
date is explicit. All reductions in this article are onetime, unless otherwise stated.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin DEPARTMENT OF HUMAN SERVICES new text end

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

new text begin $ new text end

new text begin (74,177,000) new text end

new text begin $ new text end

new text begin (74,625,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Agency Management; Financial Operations new text end

new text begin (3,289,000) new text end

new text begin (3,282,000) new text end

new text begin The reduction in fiscal year 2011 is a base
reduction for fiscal year 2012 and thereafter.
new text end

new text begin Subd. 3. new text end new text begin Children and Economic Assistance Grants new text end

new text begin (a) Child Support Enforcement Grants new text end

new text begin (3,400,000) new text end

new text begin -0- new text end

new text begin (b) Children's Services Grants new text end

new text begin (600,000) new text end

new text begin -0- new text end

new text begin American Indian Child Welfare Projects.
Notwithstanding Laws 2009, chapter 79,
article 2, section 35, $600,000 of the fiscal
year 2009 funds extended in fiscal year 2010
cancel to the general fund.
new text end

new text begin (c) Children and Community Services Grants new text end

new text begin (16,900,000) new text end

new text begin (1,500,000) new text end

new text begin (d) General Assistance Grants new text end

new text begin (5,267,000) new text end

new text begin (3,190,000) new text end

new text begin (e) Minnesota Supplemental Aid Grants new text end

new text begin (733,000) new text end

new text begin -0- new text end

new text begin (f) Group Residential Housing Grants new text end

new text begin (467,000) new text end

new text begin (706,000) new text end

new text begin Subd. 4. new text end new text begin Basic Health Care Grants new text end

new text begin (a) Medical Assistance Basic Health Care Grants - Families and Children new text end

new text begin (5,599,000) new text end

new text begin (29,163,000) new text end

new text begin (b) Medical Assistance Basic Health Care Grants - Elderly and Disabled new text end

new text begin (2,331,000) new text end

new text begin (23,114,000) new text end

new text begin Hospital Fee-for-Service Payment Delay.
Payments from the Medicaid Management
Information System that would otherwise
have been made for inpatient hospital
services for Minnesota health care program
enrollees must be delayed as follows: for
fiscal year 2011, June payments must be
included in the first payments in fiscal
year 2012. The provisions of Minnesota
Statutes, section 16A.124, do not apply
to these delayed payments. This payment
delay includes, and is not in addition to, the
payment delay for inpatient hospital services
in Laws 2009, chapter 79, article 13, section
3, subdivision 6, paragraph (c).
new text end

new text begin Nonhospital Fee-for-Service Payment
Delay. Payments from the Medicaid
Management Information System that would
otherwise have been made for nonhospital
acute care services for Minnesota health
care program enrollees must be delayed as
follows: for fiscal year 2011, June payments
must be included in the first payments in
fiscal year 2012. This payment delay must
not include nursing facilities, intermediate
care facilities for persons with developmental
disabilities, home and community-based
services, prepaid health plans, personal care
provider organizations, and home health
agencies. The provisions of Minnesota
Statutes, section 16A.124, do not apply
to these delayed payments. This payment
delay includes, and is not in addition to, the
payment delay for nonhospital acute care
services in Laws 2009, chapter 79, article 13,
section 3, subdivision 6, paragraph (c).
new text end

new text begin (c) General Assistance Medical Care Grants new text end

new text begin (15,879,000) new text end

new text begin -0- new text end

new text begin Subd. 5. new text end new text begin Health Care Management; Administration new text end

new text begin (180,000) new text end

new text begin (360,000) new text end

new text begin Incentive Program and Outreach Grants.
The general fund appropriation for the
incentive program under Laws 2008, chapter
358, article 5, section 3, subdivision 4,
paragraph (b), is canceled. This paragraph is
effective retroactively from January 1, 2010.
new text end

new text begin Subd. 6. new text end new text begin Continuing Care Grants new text end

new text begin (a) Aging and Adult Services Grants new text end

new text begin (3,600,000) new text end

new text begin (900,000) new text end

new text begin Community Service/Service Development
Grants Reduction. Effective retroactively
from July 1, 2009, funding for grants made
under Minnesota Statutes, sections 256.9754
and 256B.0917, subdivision 13, is reduced by
$3,600,000 in fiscal year 2010 and $900,000
in fiscal year 2011. Grants made during
fiscal year 2010 under Minnesota Statutes,
section 256.9754, shall not be used for new
construction or building renovation.
new text end

new text begin (b) Medical Assistance Long-Term Care Facilities Grants new text end

new text begin (3,827,000) new text end

new text begin (2,520,000) new text end

new text begin ICF/MR Variable Rates Suspension.
Effective retroactively from July 1, 2009,
to June 30, 2010, no new variable rates
shall be authorized for intermediate care
facilities for persons with developmental
disabilities under Minnesota Statutes, section
256B.5013, subdivision 1.
new text end

new text begin ICF/MR Occupancy Rate Adjustment
Suspension. Effective retroactively from
July 1, 2009, to June 30, 2010, approval
of new applications for occupancy rate
adjustments for unoccupied short-term
beds under Minnesota Statutes, section
256B.5013, subdivision 7, is suspended.
new text end

new text begin (c) Medical Assistance Long-Term Care Waivers and Home Care Grants new text end

new text begin (2,318,000) new text end

new text begin (4,477,000) new text end

new text begin Developmental Disability Waiver Acuity
Factor. Effective retroactively from January
1, 2010, the January 1, 2010, one percent
growth factor in the developmental disability
waiver allocations under Minnesota Statutes,
section 256B.092, subdivisions 4 and 5,
that is attributable to changes in acuity, is
suspended to June 30, 2011.
new text end

new text begin (d) Adult Mental Health Grants new text end

new text begin (5,000,000) new text end

new text begin -0- new text end

new text begin (e) Chemical Dependency Entitlement Grants new text end

new text begin (3,622,000) new text end

new text begin (3,622,000) new text end

new text begin (f) Chemical Dependency Nonentitlement Grants new text end

new text begin (393,000) new text end

new text begin (393,000) new text end

new text begin Subd. 7. new text end new text begin Continuing Care Management new text end

new text begin (350,000) new text end

new text begin -0- new text end

new text begin County Maintenance of Effort. The general
fund appropriation for the State-County
Results Accountability and Service Delivery
Reform under Minnesota Statutes, chapter
402A, is canceled. This paragraph is
effective retroactively from July 1, 2009.
new text end

new text begin Subd. 8. new text end new text begin State-Operated Services; Adult Mental Health Services new text end

new text begin (422,000) new text end

new text begin (4,588,000) new text end

Sec. 4. new text begin DEPARTMENT OF HEALTH new text end

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

new text begin $ new text end

new text begin (527,000) new text end

new text begin $ new text end

new text begin (525,000) new text end

new text begin The appropriation reductions for each
purpose are shown in the following
subdivisions.
new text end

new text begin The reductions in fiscal year 2011, other
than in subdivision 3, are base reductions for
fiscal year 2012 and thereafter.
new text end

new text begin Subd. 2. new text end new text begin Community and Family Health Promotion new text end

new text begin (53,000) new text end

new text begin (355,000) new text end

new text begin Subd. 3. new text end new text begin Policy Quality and Compliance new text end

new text begin (118,000) new text end

new text begin (74,000) new text end

new text begin new text begin Office of Unlicensed Health Care Practice. new text end
Of the general fund reduction $74,000
in fiscal year 2011 is from the Office of
Unlicensed Complementary and Alternative
Health Care Practice. This is a onetime
reduction.
new text end

new text begin Subd. 4. new text end new text begin Health Protection new text end

new text begin (225,000) new text end

new text begin (74,000) new text end

new text begin Subd. 5. new text end new text begin Administrative Support Services new text end

new text begin (131,000) new text end

new text begin (22,000) new text end

Sec. 5.

Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by
Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:

Subd. 8. Continuing Care Grants

The amounts that may be spent from the
appropriation for each purpose are as follows:

(a) Aging and Adult Services Grants

13,499,000

15,805,000

Base Adjustment. The general fund base is
increased by $5,751,000 in fiscal year 2012
and $6,705,000 in fiscal year 2013.

Information and Assistance
Reimbursement. Federal administrative
reimbursement obtained from information
and assistance services provided by the
Senior LinkAge or Disability Linkage lines
to people who are identified as eligible for
medical assistance shall be appropriated to
the commissioner for this activity.

Community Service Development Grant
Reduction. Funding for community service
development grants must be reduced by
$260,000 for fiscal year 2010; $284,000 in
fiscal year 2011; $43,000 in fiscal year 2012;
and $43,000 in fiscal year 2013. Base level
funding shall be restored in fiscal year 2014.

Community Service Development Grant
Community Initiative. Funding for
community service development grants shall
be used to offset the cost of aging support
grants. Base level funding shall be restored
in fiscal year 2014.

Senior Nutrition Use of Federal Funds.
For fiscal year 2010, general fund grants
for home-delivered meals and congregate
dining shall be reduced by $500,000. The
commissioner must replace these general
fund reductions with equal amounts from
federal funding for senior nutrition from the
American Recovery and Reinvestment Act
of 2009.

(b) Alternative Care Grants

50,234,000

48,576,000

Base Adjustment. The general fund base is
decreased by $3,598,000 in fiscal year 2012
and $3,470,000 in fiscal year 2013.

Alternative Care Transfer. Any money
allocated to the alternative care program that
is not spent for the purposes indicated does
not cancel but must be transferred to the
medical assistance account.

(c) Medical Assistance Grants; Long-Term Care Facilities.

367,444,000

419,749,000

(d) Medical Assistance Long-Term Care Waivers and Home Care Grants

853,567,000

1,039,517,000

Manage Growth in TBI and CADI
Waivers. During the fiscal years beginning
on July 1, 2009, and July 1, 2010, the
commissioner shall allocate money for home
and community-based waiver programs
under Minnesota Statutes, section 256B.49,
to ensure a reduction in state spending that is
equivalent to limiting the caseload growth of
the TBI waiver to 12.5 allocations per month
each year of the biennium and the CADI
waiver to 95 allocations per month each year
of the biennium. Limits do not apply: (1)
when there is an approved plan for nursing
facility bed closures for individuals under
age 65 who require relocation due to the
bed closure; (2) to fiscal year 2009 waiver
allocations delayed due to unallotment; or (3)
to transfers authorized by the commissioner
from the personal care assistance program
of individuals having a home care rating
of "CS," "MT," or "HL." Priorities for the
allocation of funds must be for individuals
anticipated to be discharged from institutional
settings or who are at imminent risk of a
placement in an institutional setting.

Manage Growth in DD Waiver. The
commissioner shall manage the growth in
the DD waiver by limiting the allocations
included in the February 2009 forecast to 15
additional diversion allocations each month
for the calendar years that begin on January
1, 2010, and January 1, 2011. Additional
allocations must be made available for
transfers authorized by the commissioner
from the personal care program of individuals
having a home care rating of "CS," "MT,"
or "HL."

Adjustment to Lead Agency Waiver
Allocations. Prior to the availability of the
alternative license defined in Minnesota
Statutes, section 245A.11, subdivision 8,
the commissioner shall reduce lead agency
waiver allocations for the purposes of
implementing a moratorium on corporate
foster care.

Alternatives to Personal Care Assistance
Services. Base level funding of $3,237,000
in fiscal year 2012 and $4,856,000 in
fiscal year 2013 is to implement alternative
services to personal care assistance services
for persons with mental health and other
behavioral challenges who can benefit
from other services that more appropriately
meet their needs and assist them in living
independently in the community. These
services may include, but not be limited to, a
1915(i) state plan option.

(e) Mental Health Grants

Appropriations by Fund
General	77,739,000	77,739,000
Health Care Access	750,000	750,000
Lottery Prize	1,508,000	1,508,000

Funding Usage. Up to 75 percent of a fiscal
year's appropriation for adult mental health
grants may be used to fund allocations in that
portion of the fiscal year ending December
31.

(f) Deaf and Hard-of-Hearing Grants

1,930,000

1,917,000

(g) Chemical Dependency Entitlement Grants

111,303,000

122,822,000

Payments for Substance Abuse Treatment.
For services provided during fiscal years
2010 and 2011, county-negotiated rates and
provider claims to the consolidated chemical
dependency fund must not exceed rates
charged for these services on January 1,
2009 new text begin ; and rates for fiscal years 2010 and
2011 must not exceed 160 percent of the
average rate on January 1, 2009, for each
group of vendors with similar attributes new text end .
For services provided in fiscal years 2012
and 2013, statewide average rates under
the new rate methodology to be developed
under Minnesota Statutes, section 254B.12,
must not exceed the average rates charged
for these services on January 1, 2009, plus a
state share increase of $3,787,000 for fiscal
year 2012 and $5,023,000 for fiscal year
2013. Notwithstanding any provision to the
contrary in this article, this provision expires
on June 30, 2013.

Chemical Dependency Special Revenue
Account. For fiscal year 2010, $750,000
must be transferred from the consolidated
chemical dependency treatment fund
administrative account and deposited into the
general fund.

County CD Share of MA Costs for
ARRA Compliance. Notwithstanding the
provisions of Minnesota Statutes, chapter
254B, for chemical dependency services
provided during the period October 1, 2008,
to December 31, 2010, and reimbursed by
medical assistance at the enhanced federal
matching rate provided under the American
Recovery and Reinvestment Act of 2009, the
county share is 30 percent of the nonfederal
share. This provision is effective the day
following final enactment.

(h) Chemical Dependency Nonentitlement Grants

1,729,000

1,729,000

(i) Other Continuing Care Grants

19,201,000

17,528,000

Base Adjustment. The general fund base is
increased by $2,639,000 in fiscal year 2012
and increased by $3,854,000 in fiscal year
2013.

Technology Grants. $650,000 in fiscal
year 2010 and $1,000,000 in fiscal year
2011 are for technology grants, case
consultation, evaluation, and consumer
information grants related to developing and
supporting alternatives to shift-staff foster
care residential service models.

Other Continuing Care Grants; HIV
Grants. Money appropriated for the HIV
drug and insurance grant program in fiscal
year 2010 may be used in either year of the
biennium.

Quality Assurance Commission. Effective
July 1, 2009, state funding for the quality
assurance commission under Minnesota
Statutes, section 256B.0951, is canceled.

Sec. 6.

Laws 2009, chapter 79, article 13, section 4, subdivision 4, as amended by
Laws 2009, chapter 173, article 2, section 2, subdivision 4, is amended to read:

Subd. 4. Health Protection

Appropriations by Fund
General	9,871,000	9,780,000
State Government Special Revenue	30,209,000	30,209,000

Base Adjustment. The general fund base is
reduced by $50,000 in each of fiscal years
2012 and 2013.

Health Protection Appropriations. (a)
$163,000 each year is for the lead abatement
grant program.

(b) $100,000 each year is for emergency
preparedness and response activities.

(c) $50,000 each year is for tuberculosis
prevention and control. This is a onetime
appropriation.

deleted text begin (d) $55,000 in fiscal year 2010 is for
pentachlorophenol.
deleted text end

deleted text begin (e) $20,000 in fiscal year 2010 is for a PFC
Citizens Advisory Group.
deleted text end

American Recovery and Reinvestment
Act Funds. Federal funds received
by the commissioner for immunization
operations from the American Recovery
and Reinvestment Act of 2009, Public Law
111-5, are appropriated to the commissioner
for the purposes of the grant.

Sec. 7.

Minnesota Statutes 2009 Supplement, section 256B.056, subdivision 3c,
is amended to read:

Subd. 3c.

Asset limitations for families and children.

A household of two or
more persons must not own more than $20,000 in total net assets new text begin except that this asset
limit shall be $6,000 for the period January 1, 2011, through June 30, 2011 new text end , new text begin plus $200
for each additional legal dependent, new text end and a household of one person must not own more
than $10,000 in total net assets new text begin , except that this asset limit shall be $3,000 for the period
January 1, 2011, through June 30, 2011 new text end . In addition to these maximum amounts, an
eligible individual or family may accrue interest on these amounts, but they must be
reduced to the maximum at the time of an eligibility redetermination. The value of assets
that are not considered in determining eligibility for medical assistance for families and
children is the value of those assets excluded under the AFDC state plan as of July 16,
1996, as required by the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (PRWORA), Public Law 104-193, with the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business up to $200,000 are not
considered, except that a bank account that contains personal income or assets, or is used to
pay personal expenses, is not considered a capital or operating asset of a trade or business;

(3) one motor vehicle is excluded for each person of legal driving age who is
employed or seeking employment;

(4) assets designated as burial expenses are excluded to the same extent they are
excluded by the Supplemental Security Income program;

(5) court-ordered settlements up to $10,000 are not considered;

(6) individual retirement accounts and funds are not considered; and

(7) assets owned by children are not considered.

The assets specified in clause (2) must be disclosed to the local agency at the time of
application and at the time of an eligibility redetermination, and must be verified upon
request of the local agency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011.
new text end

Sec. 8.

Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11,
is amended to read:

Subd. 11.

Personal care assistant; requirements.

(a) A personal care assistant
must meet the following requirements:

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years
of age with these additional requirements:

(i) supervision by a qualified professional every 60 days; and

(ii) employment by only one personal care assistance provider agency responsible
for compliance with current labor laws;

(2) be employed by a personal care assistance provider agency;

(3) enroll with the department as a personal care assistant after clearing a background
study. Before a personal care assistant provides services, the personal care assistance
provider agency must initiate a background study on the personal care assistant under
chapter 245C, and the personal care assistance provider agency must have received a
notice from the commissioner that the personal care assistant is:

(i) not disqualified under section 245C.14; or

(ii) is disqualified, but the personal care assistant has received a set aside of the
disqualification under section 245C.22;

(4) be able to effectively communicate with the recipient and personal care
assistance provider agency;

(5) be able to provide covered personal care assistance services according to the
recipient's personal care assistance care plan, respond appropriately to recipient needs,
and report changes in the recipient's condition to the supervising qualified professional
or physician;

(6) not be a consumer of personal care assistance services;

(7) maintain daily written records including, but not limited to, time sheets under
subdivision 12;

(8) effective January 1, 2010, complete standardized training as determined by the
commissioner before completing enrollment. Personal care assistant training must include
successful completion of the following training components: basic first aid, vulnerable
adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of
personal care assistants including information about assistance with lifting and transfers
for recipients, emergency preparedness, orientation to positive behavioral practices, fraud
issues, and completion of time sheets. Upon completion of the training components,
the personal care assistant must demonstrate the competency to provide assistance to
recipients;

(9) complete training and orientation on the needs of the recipient within the first
seven days after the services begin; and

(10) be limited to providing and being paid for up to 310 hours per month new text begin , except
that this limit shall be 275 hours per month for the period July 1, 2009, through June 30,
2010, new text end of personal care assistance services regardless of the number of recipients being
served or the number of personal care assistance provider agencies enrolled with.

(b) A legal guardian may be a personal care assistant if the guardian is not being paid
for the guardian services and meets the criteria for personal care assistants in paragraph (a).

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant
include parents and stepparents of minors, spouses, paid legal guardians, family foster
care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or
staff of a residential setting.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009.
new text end

Sec. 9.

Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55,
is amended to read:

Subd. 55.

Phase-in of rebased operating payment rates.

(a) For the rate years
beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated
under this section shall be phased in by blending the operating rate with the operating
payment rate determined under section 256B.434. For purposes of this subdivision, the
rate to be used that is determined under section 256B.434 shall not include the portion of
the operating payment rate related to performance-based incentive payments under section
256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the
operating payment rate for each facility shall be 13 percent of the operating payment rate
from this section, and 87 percent of the operating payment rate from section 256B.434.
deleted text begin For the rate year beginning October 1, 2009, the operating payment rate for each facility
shall be 14 percent of the operating payment rate from this section, and 86 percent of the
operating payment rate from section 256B.434. deleted text end For rate years beginning new text begin October 1, 2009;
new text end October 1, 2010; October 1, 2011; and October 1, 2012, no rate adjustments shall be
implemented under this section, but shall be determined under section 256B.434. For the
rate year beginning October 1, 2013, the operating payment rate for each facility shall be
65 percent of the operating payment rate from this section, and 35 percent of the operating
payment rate from section 256B.434. For the rate year beginning October 1, 2014, the
operating payment rate for each facility shall be 82 percent of the operating payment rate
from this section, and 18 percent of the operating payment rate from section 256B.434. For
the rate year beginning October 1, 2015, the operating payment rate for each facility shall
be the operating payment rate determined under this section. The blending of operating
payment rates under this section shall be performed separately for each RUG's class.

(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits
to the operating payment rate increases under paragraph (a) by creating a minimum
percentage increase and a maximum percentage increase.

(1) Each nursing facility that receives a blended October 1, 2008, operating payment
rate increase under paragraph (a) of less than one percent, when compared to its operating
payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00,
shall receive a rate adjustment of one percent.

(2) The commissioner shall determine a maximum percentage increase that will
result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing
facilities with a blended October 1, 2008, operating payment rate increase under paragraph
(a) greater than the maximum percentage increase determined by the commissioner, when
compared to its operating payment rate on September 30, 2008, computed using rates with
a RUG's weight of 1.00, shall receive the maximum percentage increase.

(3) Nursing facilities with a blended October 1, 2008, operating payment rate
increase under paragraph (a) greater than one percent and less than the maximum
percentage increase determined by the commissioner, when compared to its operating
payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00,
shall receive the blended October 1, 2008, operating payment rate increase determined
under paragraph (a).

(4) The October 1, 2009, through October 1, 2015, operating payment rate for
facilities receiving the maximum percentage increase determined in clause (2) shall be
the amount determined under paragraph (a) less the difference between the amount
determined under paragraph (a) for October 1, 2008, and the amount allowed under clause
(2). This rate restriction does not apply to rate increases provided in any other section.

(c) A portion of the funds received under this subdivision that are in excess of
operating payment rates that a facility would have received under section 256B.434, as
determined in accordance with clauses (1) to (3), shall be subject to the requirements in
section 256B.434, subdivision 19, paragraphs (b) to (h).

(1) Determine the amount of additional funding available to a facility, which shall be
equal to total medical assistance resident days from the most recent reporting year times
the difference between the blended rate determined in paragraph (a) for the rate year being
computed and the blended rate for the prior year.

(2) Determine the portion of all operating costs, for the most recent reporting year,
that are compensation related. If this value exceeds 75 percent, use 75 percent.

(3) Subtract the amount determined in clause (2) from 75 percent.

(4) The portion of the fund received under this subdivision that shall be subject to
the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal
the amount determined in clause (1) times the amount determined in clause (3).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from October 1, 2009.
new text end

Sec. 10.

Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a,
is amended to read:

Subd. 5a.

Managed care contracts.

(a) Managed care contracts under this section
and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year
basis beginning January 1, 1996. Managed care contracts which were in effect on June
30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995
through December 31, 1995 at the same terms that were in effect on June 30, 1995. The
commissioner may issue separate contracts with requirements specific to services to
medical assistance recipients age 65 and older.

(b) A prepaid health plan providing covered health services for eligible persons
pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms
of its contract with the commissioner. Requirements applicable to managed care programs
under chapters 256B, 256D, and 256L, established after the effective date of a contract
with the commissioner take effect when the contract is next issued or renewed.

(c) Effective for services rendered on or after January 1, 2003, the commissioner
shall withhold five percent of managed care plan payments under this section and
county-based purchasing plan's payment rate under section 256B.692 for the prepaid
medical assistance and general assistance medical care programs pending completion of
performance targets. Each performance target must be quantifiable, objective, measurable,
and reasonably attainable, except in the case of a performance target based on a federal
or state law or rule. Criteria for assessment of each performance target must be outlined
in writing prior to the contract effective date. The managed care plan must demonstrate,
to the commissioner's satisfaction, that the data submitted regarding attainment of
the performance target is accurate. The commissioner shall periodically change the
administrative measures used as performance targets in order to improve plan performance
across a broader range of administrative services. The performance targets must include
measurement of plan efforts to contain spending on health care services and administrative
activities. The commissioner may adopt plan-specific performance targets that take into
account factors affecting only one plan, including characteristics of the plan's enrollee
population. The withheld funds must be returned no sooner than July of the following
year if performance targets in the contract are achieved. The commissioner may exclude
special demonstration projects under subdivision 23.

(d) Effective for services rendered on or after January 1, 2009, through December 31,
2009, the commissioner shall withhold three percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance and general assistance medical care programs. The withheld
funds must be returned no sooner than July 1 and no later than July 31 of the following
year. The commissioner may exclude special demonstration projects under subdivision 23.

The return of the withhold under this paragraph is not subject to the requirements of
paragraph (c).

(e) Effective for services provided on or after January 1, 2010, the commissioner
shall require that managed care plans use the assessment and authorization processes,
forms, timelines, standards, documentation, and data reporting requirements, protocols,
billing processes, and policies consistent with medical assistance fee-for-service or the
Department of Human Services contract requirements consistent with medical assistance
fee-for-service or the Department of Human Services contract requirements for all
personal care assistance services under section 256B.0659.

(f) Effective for services rendered on or after January 1, 2010, through December
31, 2010, the commissioner shall withhold deleted text begin 3.5 deleted text end new text begin 4.5 new text end percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(g) Effective for services rendered on or after January 1, 2011, through December 31,
2011, the commissioner shall withhold deleted text begin four deleted text end new text begin 4.5 new text end percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner
may exclude special demonstration projects under subdivision 23. new text begin If an extension of the
enhanced federal medical assistance percentage (FMAP) under Public Law 111-5, section
5001, is enacted before June 15, 2010, the withhold percentage stated in this paragraph
shall be 4.0 percent.
new text end

(h) Effective for services rendered on or after January 1, 2012, through December
31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(i) Effective for services rendered on or after January 1, 2013, through December 31,
2013, the commissioner shall withhold 4.5 percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program. The withheld funds must be returned no sooner than
July 1 and no later than July 31 of the following year. The commissioner may exclude
special demonstration projects under subdivision 23.

(j) Effective for services rendered on or after January 1, 2014, the commissioner
shall withhold three percent of managed care plan payments under this section and
county-based purchasing plan payments under section 256B.692 for the prepaid medical
assistance and prepaid general assistance medical care programs. The withheld funds must
be returned no sooner than July 1 and no later than July 31 of the following year. The
commissioner may exclude special demonstration projects under subdivision 23.

(k) A managed care plan or a county-based purchasing plan under section 256B.692
may include as admitted assets under section 62D.044 any amount withheld under this
section that is reasonably expected to be returned.

(l) Contracts between the commissioner and a prepaid health plan are exempt from
the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph
(a), and 7.

new text begin EFFECTIVE DATE. new text end

new text begin The additional withhold percentage in paragraph (f) is
effective retroactively from January 1, 2010.
new text end

Sec. 11.

Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is
amended to read:

Subdivision 1.

Physician reimbursement.

(a) Effective for services rendered on
or after October 1, 1992, the commissioner shall make payments for physician services
as follows:

(1) payment for level one Centers for Medicare and Medicaid Services' common
procedural coding system codes titled "office and other outpatient services," "preventive
medicine new and established patient," "delivery, antepartum, and postpartum care,"
"critical care," cesarean delivery and pharmacologic management provided to psychiatric
patients, and level three codes for enhanced services for prenatal high risk, shall be paid
at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June
30, 1992. If the rate on any procedure code within these categories is different than the
rate that would have been paid under the methodology in section 256B.74, subdivision 2,
then the larger rate shall be paid;

(2) payments for all other services shall be paid at the lower of (i) submitted charges,
or (ii) 15.4 percent above the rate in effect on June 30, 1992; and

(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases
except that payment rates for home health agency services shall be the rates in effect
on September 30, 1992.

(b) Effective for services rendered on or after January 1, 2000, payment rates for
physician and professional services shall be increased by three percent over the rates
in effect on December 31, 1999, except for home health agency and family planning
agency services. The increases in this paragraph shall be implemented January 1, 2000,
for managed care.

(c) Effective for services rendered on or after July 1, 2009, payment rates for
physician and professional services shall be reduced by five percent new text begin , except that for the
period July 1, 2009, through June 30, 2011, payments rates shall be reduced by 6.5 percent
for the medical assistance and general assistance medical care programs, new text end over the rates
in effect on June 30, 2009. new text begin The additional 1.5 percent reduction in effect for the period
from July 1, 2010, through June 30, 2011, does not apply to physician services billed by a
psychiatrist or an advanced practice registered nurse with a specialty in mental health.
new text end This reduction does not apply to office or other outpatient visits, preventive medicine visits
and family planning visits billed by physicians, advanced practice nurses, or physician
assistants in a family planning agency or in one of the following primary care practices:
general practice, general internal medicine, general pediatrics, general geriatrics, and
family medicine. This reduction does not apply to federally qualified health centers,
rural health centers, and Indian health services. Effective October 1, 2009, payments
made to managed care plans and county-based purchasing plans under sections 256B.69,
256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin The additional rate reductions in this section are effective
retroactively from July 1, 2009.
new text end

Sec. 12.

Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:

Subd. 4.

Critical access dental providers.

new text begin (a) new text end Effective for dental services rendered
on or after January 1, 2002, the commissioner shall increase reimbursements to dentists
and dental clinics deemed by the commissioner to be critical access dental providers.
For dental services rendered on or after July 1, 2007, the commissioner shall increase
reimbursement by 30 percent above the reimbursement rate that would otherwise be paid to
the critical access dental provider. The commissioner shall pay the health plan companies
in amounts sufficient to reflect increased reimbursements to critical access dental providers
as approved by the commissioner. In determining which dentists and dental clinics shall
be deemed critical access dental providers, the commissioner shall review:

(1) the utilization rate in the service area in which the dentist or dental clinic operates
for dental services to patients covered by medical assistance, general assistance medical
care, or MinnesotaCare as their primary source of coverage;

(2) the level of services provided by the dentist or dental clinic to patients covered
by medical assistance, general assistance medical care, or MinnesotaCare as their primary
source of coverage; and

(3) whether the level of services provided by the dentist or dental clinic is critical to
maintaining adequate levels of patient access within the service area.

In the absence of a critical access dental provider in a service area, the commissioner may
designate a dentist or dental clinic as a critical access dental provider if the dentist or
dental clinic is willing to provide care to patients covered by medical assistance, general
assistance medical care, or MinnesotaCare at a level which significantly increases access
to dental care in the service area.

new text begin (b) Notwithstanding paragraph (a), critical access payments must not be made for
dental services provided from April 1, 2010, through June 30, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010.
new text end

Sec. 13.

Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:

256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

(a) Effective for services provided on or after July 1, 2009, total payments for basic
care services, shall be reduced by three percent new text begin , except that for the period July 1, 2009,
through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical
assistance and general assistance medical care programs new text end , prior to third-party liability
and spenddown calculation. Payments made to managed care plans and county-based
purchasing plans shall be reduced for services provided on or after October 1, 2009,
to reflect this reduction.

(b) This section does not apply to physician and professional services, inpatient
hospital services, family planning services, mental health services, dental services,
prescription drugs, medical transportation, federally qualified health centers, rural health
centers, Indian health services, and Medicare cost-sharing.

new text begin EFFECTIVE DATE. new text end

new text begin The additional rate reductions in this section are effective
retroactively from July 1, 2009.
new text end

Sec. 14. new text begin REDUCTION OF GROUP RESIDENTIAL HOUSING
SUPPLEMENTAL SERVICE RATE.
new text end

new text begin Effective retroactively from November 1, 2009, through June 30, 2011, the
commissioner of human services shall decrease the group residential housing (GRH)
supplementary service rate under Minnesota Statutes, section 256I.05, subdivision 1a, by
five percent for services rendered on or after that date, except that reimbursement rates
for a GRH facility reimbursed as a nursing facility shall not be reduced. The reduction
in this paragraph is in addition to the reduction under Laws 2009, chapter 79, article
8, section 79, paragraph (b), clause (11).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from November 1, 2009.
new text end

Sec. 15. new text begin ARTICLE EFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment. If an extension of the
enhanced federal medical assistance percentage (FMAP) under Public Law 111-5, section
5001, to at least June 30, 2011, is enacted by June 15, 2010, and notwithstanding the
immediate or retroactive effective dates for various sections of this article, reductions in
this article effective on or after July 1, 2010, except for reductions to appropriations for
state agency administrative costs in section 3, subdivision 2, and section 4, shall not
take effect.
new text end

ARTICLE 14

AIDS, CREDITS, REFUNDS

Section 1.

Minnesota Statutes 2008, section 273.1384, subdivision 6, as added by Laws
2010, chapter 215, article 13, section 2, is amended to read:

Subd. 6.

Credit reduction.

In 2011 and each year thereafter, the market value
credit reimbursement amount for each taxing jurisdiction determined under this section
is reduced by the dollar amount of the reduction in market value credit reimbursements
for that taxing jurisdiction in 2010 due to deleted text begin unallotment deleted text end new text begin the new text end reductions deleted text begin announced prior
to February 28, 2010, under section 16A.152 deleted text end new text begin under section 477A.0133 new text end . No taxing
jurisdiction's market value credit reimbursements are reduced to less than zero under
this subdivision. The commissioner of revenue shall pay the annual market value credit
reimbursement amounts, after reduction under this subdivision, to the affected taxing
jurisdictions as provided in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and
thereafter.
new text end

Sec. 2.

new text begin [477A.0133] 2009 AND 2010 AID REDUCTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) The "2009 revenue base" for a statutory or home rule charter city is the sum of
the city's certified property tax levy for taxes payable in 2009, plus the amount of local
government aid under section 477A.013, subdivision 9, that the city was certified to
receive in 2009, plus the amount of taconite aids under sections 298.28 and 298.282 that
the city was certified to receive in 2009, including any amounts required to be placed in a
special fund for distribution in a later year.
new text end

new text begin (c) The "2009 revenue base" for a county is the sum of the county's certified property
tax levy for taxes payable in 2009, plus the amount of county program aid under section
477A.0124 that the county was certified to receive in 2009, plus the amount of taconite
aids under sections 298.28 and 298.282 that the county was certified to receive in 2009,
including any amounts required to be placed in a special fund for distribution in a later year.
new text end

new text begin (d) The "2009 revenue base" for a town is the sum of the town's certified property
tax levy for taxes payable in 2009, plus the amount of aid under section 477A.013 that
the town was certified to receive in 2009, plus the amount of taconite aids under sections
298.28 and 298.282 that the town was certified to receive in 2009, including any amounts
required to be placed in a special fund for distribution in a later year.
new text end

new text begin (e) "Population" means the population of the county, city, or town for 2007 based on
information available to the commissioner of revenue in July 2009.
new text end

new text begin (f) "Adjusted net tax capacity" means the amount of net tax capacity for the county,
city, or town, computed using equalized market values according to section 477A.011,
subdivision 20, for aid payable in 2009.
new text end

new text begin (g) "Adjusted net tax capacity per capita" means the jurisdiction's adjusted net tax
capacity divided by its population.
new text end

new text begin Subd. 2. new text end

new text begin 2009 aid reductions. new text end

new text begin (a) The commissioner of revenue must compute a
2009 aid reduction amount for each county.
new text end

new text begin The aid reduction amount is zero for a county with a population of less than 5,000,
and is zero for a county containing the Shooting Star Casino property that was removed
from the tax rolls in 2009.
new text end

new text begin For all other counties, the aid reduction amount is equal to 1.188968672 percent of
the county's 2009 revenue base.
new text end

new text begin The reduction amount is limited to the sum of the amount of county program aid
under section 477A.0124 that the county was certified to receive in 2009, plus the amount
of market value credit reimbursements under section 273.1384 payable to the county in
2009 before the reductions in this section.
new text end

new text begin The reduction amount is applied first to reduce the amount payable to the county
in 2009 as county program aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the county in 2009 as market value credit reimbursements under
section 273.1384.
new text end

new text begin No county's aid or reimbursements are reduced to less than zero under this section.
new text end

new text begin (b) The commissioner of revenue must compute a 2009 aid reduction amount for
each city.
new text end

new text begin The aid reduction amount is zero for any city with a population of less than 1,000 that
has an adjusted net tax capacity per capita amount less than the statewide average adjusted
net tax capacity amount per capita for all cities. The aid reduction amount is also zero for
a city located outside the seven-county metropolitan area, with a 2006 population greater
than 3,500, a pre-1940 housing percentage greater than 29 percent, a commercial-industrial
percentage less than nine percent, and a population decline percentage of zero based on the
data used to certify the 2009 local government aid distribution under section 477A.013.
new text end

new text begin For all other cities, the aid reduction amount is equal to 3.3127634 percent of the
city's 2009 revenue base.
new text end

new text begin The reduction amount is limited to the sum of the amount of local government aid
under section 477A.013, subdivision 9, that the city was certified to receive in 2009, plus
the amount of market value credit reimbursements under section 273.1384 payable to the
city in 2009 before the reductions in this section.
new text end

new text begin The reduction amount for a city is further limited to $22 per capita.
new text end

new text begin The reduction amount is applied first to reduce the amount payable to the city in
2009 as local government aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the city in 2009 as market value credit reimbursements under
section 273.1384.
new text end

new text begin No city's aid or reimbursements are reduced to less than zero under this section.
new text end

new text begin (c) The commissioner of revenue must compute a 2009 aid reduction amount for
each town.
new text end

new text begin The aid reduction amount is zero for any town with a population of less than 1,000
that has an adjusted net tax capacity per capita amount less than the statewide average
adjusted net tax capacity amount per capita for all towns.
new text end

new text begin For all other towns, the aid reduction amount is equal to 1.735103 percent of the
town's 2009 revenue base.
new text end

new text begin The reduction amount is limited to $5 per capita.
new text end

new text begin The reduction amount is applied to reduce the amount payable to the town in 2009
as market value credit reimbursements under section 273.1384.
new text end

new text begin No town's reimbursements are reduced to less than zero under this section.
new text end

new text begin Subd. 3. new text end

new text begin 2010 aid reductions. new text end

new text begin (a) The commissioner of revenue must compute a
2010 aid reduction amount for each county.
new text end

new text begin The aid reduction amount is zero for a county with a population of less than 5,000,
and is zero for a county containing the Shooting Star Casino property that was removed
from the tax rolls in 2009.
new text end

new text begin For all other counties, the aid reduction amount is equal to 2.41396687 percent of
the county's 2009 revenue base.
new text end

new text begin The reduction amount is limited to the sum of the amount of county program aid
under section 477A.0124 that the county was certified to receive in 2009, plus the amount
of market value credit reimbursements under section 273.1384 payable to the county in
2009 before the reductions in this section.
new text end

new text begin The reduction amount is applied first to reduce the amount payable to the county
in 2010 as county program aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the county in 2010 as market value credit reimbursements under
section 273.1384.
new text end

new text begin No county's aid or reimbursements are reduced to less than zero under this section.
new text end

new text begin (b) The commissioner of revenue must compute a 2010 aid reduction amount for
each city.
new text end

new text begin The aid reduction amount is zero for any city with a population of less than 1,000
that has an adjusted net tax capacity per capita amount less than the statewide average
adjusted net tax capacity amount per capita for all cities.
new text end

new text begin For all other cities, the aid reduction amount is equal to 7.643803025 percent of the
city's 2009 revenue base.
new text end

new text begin The reduction amount is limited to the sum of the amount of local government aid
under section 477A.013, subdivision 9, that the city was certified to receive in 2010, plus
the amount of market value credit reimbursements under section 273.1384 payable to the
city in 2010 before the reductions in this section.
new text end

new text begin The reduction amount for a city is further limited to $55 per capita.
new text end

new text begin The reduction amount is applied first to reduce the amount payable to the city in
2010 as local government aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the city in 2010 as market value credit reimbursements under
section 273.1384.
new text end

new text begin No city's aid or reimbursements are reduced to less than zero under this section.
new text end

new text begin (c) The commissioner of revenue must compute a 2010 aid reduction amount for
each town.
new text end

new text begin The aid reduction amount is zero for any town with a population of less than 1,000
that has an adjusted net tax capacity per capita amount less than the statewide average
adjusted net tax capacity amount per capita for all towns.
new text end

new text begin For all other towns, the aid reduction amount is equal to 3.660798 percent of the
town's 2009 revenue base.
new text end

new text begin The reduction amount is limited to $10 per capita.
new text end

new text begin The reduction amount is applied to reduce the amount payable to the town in 2010
as market value credit reimbursements under section 273.1384.
new text end

new text begin No town's reimbursements are reduced to less than zero under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and is retroactive for aids and credit reimbursements payable in 2009.
new text end

Sec. 3.

Laws 2010, chapter 215, article 13, section 6, is amended to read:

Sec. 6.

477A.0133 ADDITIONAL 2010 AID AND CREDIT REDUCTIONS.

Subdivision 1.

Definitions.

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

(b) The "2010 revenue base" for a county is the sum of the county's certified property
tax levy for taxes payable in 2010, plus the amount of county program aid under section
477A.0124 that the county was certified to receive in 2010, plus the amount of taconite
aids under sections 298.28 and 298.282 that the county was certified to receive in 2010
including any amounts required to be placed in a special fund for distribution in a later year.

(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of
the city's certified property tax levy for taxes payable in 2010, plus the amount of local
government aid under section 477A.013, subdivision 9, that the city was certified to
receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that
the city was certified to receive in 2010 including any amounts required to be placed in a
special fund for distribution in a later year.

Subd. 2.

2010 reductions; counties and cities.

The commissioner of revenue
must compute additional 2010 aid and credit reimbursement reduction amounts for each
county and city under this section, after implementing any reduction of county program
aid under section 477A.0124, local government aid under section 477A.013, or market
value credit reimbursements under section 273.1384, to reflect the deleted text begin reduction of allotments
under section 16A.152 deleted text end new text begin reductions under section 477A.0133 new text end .

The additional reduction amounts under this section are limited to the sum of the
amount of county program aid under section 477A.0124, local government aid under
section 477A.013, and market value credit reimbursements under section 273.1384
payable to the county or city in 2010 before the reductions in this section, but after the
reductions deleted text begin for unallotments deleted text end new text begin under section 477A.0133 new text end .

The reduction amount under this section is applied first to reduce the amount
payable to the county or city in 2010 as market value credit reimbursements under section
273.1384, and then if necessary, to reduce the amount payable as either county program
aid under section 477A.0124 in the case of a county, or local government aid under section
477A.013 in the case of a city.

No aid or reimbursement amount is reduced to less than zero under this section.

The additional 2010 aid reduction amount for a county is equal to 1.82767 percent
of the county's 2010 revenue base. The additional 2010 aid reduction amount for a city
is equal to the lesser of (1) 3.4287 percent of the city's 2010 revenue base or (2) $28
multiplied by the city's 2008 population.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin REFUNDS AND CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Political contribution credit. new text end

new text begin Notwithstanding the provisions of
Minnesota Statutes, section 290.06, subdivision 23, or any other law to the contrary, the
political contribution refund does not apply to contributions made after June 30, 2009,
and before July 1, 2011.
new text end

new text begin Subd. 2. new text end

new text begin Property tax refund. new text end

new text begin For property tax refunds based on rent paid during
calendar year 2009 only, but also applying to refunds based on property taxes payable in
2010 that include gross rent paid in 2009, the following rules apply:
new text end

new text begin (1) "rent constituting property taxes" must be calculated by substituting "15 percent"
for "19 percent" under Minnesota Statutes, section 290A.03, subdivision 11; and
new text end

new text begin (2) "property taxes payable" must be calculated under Minnesota Statutes, section
290A.03, subdivision 13, by substituting "15 percent" for "19 percent" in determining the
portion of gross rent paid that is included in property taxes payable.
new text end

new text begin Subd. 3. new text end

new text begin Sustainable forest incentive program. new text end

new text begin The maximum sustainable forest
incentive program payments under Minnesota Statutes, section 290C.07, per each Social
Security number or state or federal business tax identification number must not exceed
$100,000. The provisions of this subdivision apply only to payments made during fiscal
year 2011.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin LEVY VALIDATION.
new text end

new text begin Any special levy under Minnesota Statutes, section 275.70, subdivision 5, clause
(22), approved by the commissioner of revenue for taxes payable in 2010, is validated
notwithstanding a later judicial decision that may affect the validity of unallotments that
were announced in 2009. A local government may not levy under Minnesota Statutes,
section 275.70, subdivision 5, clause (22), for taxes payable in 2011 for any retroactive
reduction in aid and credit reimbursements for aids and credits payable in 2008 or 2009.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 15

SPECIAL REVENUE FUND

Section 1.

Minnesota Statutes 2008, section 3.9741, subdivision 2, is amended to read:

Subd. 2.

Postsecondary Education Board.

The legislative auditor may enter into
an interagency agreement with the Board of Trustees of the Minnesota State Colleges and
Universities to conduct financial audits, in addition to audits conducted under section
3.972, subdivision 2. All payments received for audits requested by the board shall be
deleted text begin added to the appropriation for deleted text end new text begin deposited in the special revenue fund and appropriated to new text end
the legislative auditor new text begin to pay audit expenses new text end .

Sec. 2.

Minnesota Statutes 2008, section 8.15, subdivision 3, is amended to read:

Subd. 3.

Agreements.

(a) To facilitate the delivery of legal services, the attorney
general may:

(1) enter into agreements with executive branch agencies, political subdivisions, or
quasi-state agencies to provide legal services for the benefit of the citizens of Minnesota;
and

(2) in addition to funds otherwise appropriated by the legislature, accept and spend
funds received under any agreement authorized in clause (1) for the purpose set forth in
clause (1), subject to a report of receipts to the chairs of the senate Finance Committee and
the house of representatives Ways and Means Committee by October 15 each year.

(b) When entering into an agreement for legal services, the attorney general must
notify the committees responsible for funding the Office of the Attorney General. When
the attorney general enters into an agreement with a state agency, the attorney general
must also notify the committees responsible for funding that agency.

Funds received under this subdivision must be deposited in deleted text begin the general deleted text end new text begin an account in
the special revenue new text end fund and are appropriated to the attorney general for the purposes set
forth in this subdivision.

Sec. 3.

Minnesota Statutes 2008, section 13.03, subdivision 10, is amended to read:

Subd. 10.

Costs for providing copies of data.

Money new text begin may be new text end collected by a
responsible authority in a state agency for the actual cost to the agency of providing
copies or electronic transmittal of government data deleted text begin is appropriated to the agency and
added to the appropriations from which the costs were paid deleted text end . new text begin When money collected for
purposes of this section is of a magnitude sufficient to warrant a separate account in the
state treasury, that money must be deposited in a fund other than the general fund and is
appropriated to the agency.
new text end

Sec. 4.

Minnesota Statutes 2008, section 16C.23, subdivision 6, is amended to read:

Subd. 6.

State surplus property.

The commissioner may do any of the following to
dispose of state surplus property:

(1) transfer it to or between state agencies;

(2) transfer it to a governmental unit or nonprofit organization in Minnesota; or

(3) sell it and charge a fee to cover expenses incurred by the commissioner in the
disposal of the surplus property.

The proceeds of the sale less the fee new text begin must be deposited in an account in a fund other
than the general fund and new text end are appropriated to the agency for whose account the sale was
made, to be used and expended by that agency to purchase similar state property.

Sec. 5.

Minnesota Statutes 2008, section 103B.101, subdivision 9, is amended to read:

Subd. 9.

Powers and duties.

In addition to the powers and duties prescribed
elsewhere, the board shall:

(1) coordinate the water and soil resources planning activities of counties, soil and
water conservation districts, watershed districts, watershed management organizations,
and any other local units of government through its various authorities for approval of
local plans, administration of state grants, and by other means as may be appropriate;

(2) facilitate communication and coordination among state agencies in cooperation
with the Environmental Quality Board, and between state and local units of government,
in order to make the expertise and resources of state agencies involved in water and soil
resources management available to the local units of government to the greatest extent
possible;

(3) coordinate state and local interests with respect to the study in southwestern
Minnesota under United States Code, title 16, section 1009;

(4) develop information and education programs designed to increase awareness
of local water and soil resources problems and awareness of opportunities for local
government involvement in preventing or solving them;

(5) provide a forum for the discussion of local issues and opportunities relating
to water and soil resources management;

(6) adopt an annual budget and work program that integrate the various functions
and responsibilities assigned to it by law; and

(7) report to the governor and the legislature by October 15 of each even-numbered
year with an assessment of board programs and recommendations for any program
changes and board membership changes necessary to improve state and local efforts
in water and soil resources management.

The board may accept grants, gifts, donations, or contributions in money, services,
materials, or otherwise from the United States, a state agency, or other source to achieve
an authorized purpose. The board may enter into a contract or agreement necessary or
appropriate to accomplish the transfer. The board may receive and expend money to
acquire conservation easements, as defined in chapter 84C, on behalf of the state and
federal government consistent with the Camp Ripley's Army Compatible Use Buffer
Project.

Any money received is hereby new text begin deposited in an account in a fund other than the
general fund and new text end appropriated and dedicated for the purpose for which it is granted.

Sec. 6.

Minnesota Statutes 2008, section 103I.681, subdivision 11, is amended to read:

Subd. 11.

Permit fee schedule.

(a) The commissioner of natural resources shall
adopt a permit fee schedule under chapter 14. The schedule may provide minimum fees
for various classes of permits, and additional fees, which may be imposed subsequent
to the application, based on the cost of receiving, processing, analyzing, and issuing
the permit, and the actual inspecting and monitoring of the activities authorized by the
permit, including costs of consulting services.

(b) A fee may not be imposed on a state or federal governmental agency applying
for a permit.

(c) The fee schedule may provide for the refund of a fee, in whole or in part, under
circumstances prescribed by the commissioner of natural resources. Fees received must
be deposited in the state treasury and credited to deleted text begin the general deleted text end new text begin an account in the natural
resources new text end fund. Permit fees received are appropriated annually from the deleted text begin general deleted text end new text begin natural
resources new text end fund to the commissioner of natural resources for the costs of inspecting and
monitoring the activities authorized by the permit, including costs of consulting services.

Sec. 7.

Minnesota Statutes 2008, section 116J.551, subdivision 1, is amended to read:

Subdivision 1.

Grant account.

A contaminated site cleanup and development grant
account is created in the deleted text begin general deleted text end new text begin special revenue new text end fund. Money in the account may be used,
as appropriated by law, to make grants as provided in section 116J.554 and to pay for the
commissioner's costs in reviewing applications and making grants. Notwithstanding
section 16A.28, money appropriated to the account for this program from any source
is available until spent.

Sec. 8.

Minnesota Statutes 2008, section 190.32, is amended to read:

190.32 FEDERAL REIMBURSEMENT RECEIPTS.

The Department of Military Affairs may deposit federal reimbursement receipts into
deleted text begin the general fund deleted text end new text begin an new text end account new text begin in the special revenue fund new text end , maintenance of military training
facilities. These receipts are for services, supplies, and materials initially purchased by the
Camp Ripley maintenance account.

Sec. 9.

Minnesota Statutes 2008, section 257.69, subdivision 2, is amended to read:

Subd. 2.

Guardian; legal fees.

(a) The court may order expert witness and guardian
ad litem fees and other costs of the trial and pretrial proceedings, including appropriate
tests, to be paid by the parties in proportions and at times determined by the court. The
court shall require a party to pay part of the fees of court-appointed counsel according
to the party's ability to pay, but if counsel has been appointed the appropriate agency
shall pay the party's proportion of all other fees and costs. The agency responsible for
child support enforcement shall pay the fees and costs for blood or genetic tests in a
proceeding in which it is a party, is the real party in interest, or is acting on behalf of the
child. However, at the close of a proceeding in which paternity has been established under
sections 257.51 to 257.74, the court shall order the adjudicated father to reimburse the
public agency, if the court finds he has sufficient resources to pay the costs of the blood or
genetic tests. When a party bringing an action is represented by the county attorney, no
filing fee shall be paid to the court administrator.

(b) In each fiscal year, the commissioner of management and budget shall deposit
guardian ad litem reimbursements in the deleted text begin general deleted text end new text begin special revenue new text end fund and credit them to a
separate account with the trial courts. The balance of this account is appropriated to the
trial courts and does not cancel but is available until expended. Expenditures by the state
court administrator's office from this account must be based on the amount of the guardian
ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 10.

Minnesota Statutes 2008, section 260C.331, subdivision 6, is amended to read:

Subd. 6.

Guardian ad litem fees.

(a) In proceedings in which the court appoints a
guardian ad litem pursuant to section 260C.163, subdivision 5, clause (a), the court may
inquire into the ability of the parents to pay for the guardian ad litem's services and,
after giving the parents a reasonable opportunity to be heard, may order the parents to
pay guardian fees.

(b) In each fiscal year, the commissioner of management and budget shall deposit
guardian ad litem reimbursements in the deleted text begin general deleted text end new text begin special revenue new text end fund and credit them to a
separate account with the trial courts. The balance of this account is appropriated to the
trial courts and does not cancel but is available until expended. Expenditures by the state
court administrator's office from this account must be based on the amount of the guardian
ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 11.

Minnesota Statutes 2009 Supplement, section 270.97, is amended to read:

270.97 DEPOSIT OF REVENUES.

The commissioner shall deposit all revenues derived from the tax, interest, and
penalties received from the county in the contaminated site cleanup and development
account in the deleted text begin general deleted text end new text begin special revenue new text end fund and is annually appropriated to the
commissioner of the Department of Employment and Economic Development, for the
purposes of section 116J.551.

Sec. 12.

Minnesota Statutes 2008, section 299C.48, is amended to read:

299C.48 CONNECTION BY AUTHORIZED AGENCY; FEE,
APPROPRIATION.

(a) An agency authorized under section 299C.46, subdivision 3, may connect with
and participate in the criminal justice data communications network upon approval
of the commissioner of public safety; provided, that the agency shall first agree to pay
installation charges as may be necessary for connection and monthly operational charges
as may be established by the commissioner of public safety. Before participation by a
criminal justice agency may be approved, the agency must have executed an agreement
with the commissioner providing for security of network facilities and restrictions on
access to data supplied to and received through the network.

(b) In addition to any fee otherwise authorized, the commissioner of public safety
shall impose a fee for providing secure dial-up or Internet access for criminal justice
agencies and noncriminal justice agencies. The following monthly fees apply:

(1) criminal justice agency accessing via Internet, $15;

(2) criminal justice agency accessing via dial-up, $35;

(3) noncriminal justice agency accessing via Internet, $35; and

(4) noncriminal justice agency accessing via dial-up, $35.

(c) The installation and monthly operational charges collected by the commissioner
of public safety under paragraphs (a) and (b) new text begin must be deposited in an account in the special
revenue fund and new text end are annually appropriated to the commissioner to administer sections
299C.46 to 299C.50.

Sec. 13.

Minnesota Statutes 2008, section 299E.02, is amended to read:

299E.02 CONTRACT SERVICES; APPROPRIATION.

Fees charged for contracted security services provided by the Capitol Complex
Security Division of the Department of Public Safety new text begin must be deposited in an account in
the special revenue fund and new text end are annually appropriated to the commissioner of public
safety to administer and provide these services.

Sec. 14.

Minnesota Statutes 2008, section 446A.086, subdivision 2, as amended by
Laws 2010, chapter 290, section 14, is amended to read:

Subd. 2.

Application.

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

(1) the obligations are issued for new projects and are not issued for the purposes of
refunding previous obligations;

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

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

(b) Applications to be covered by the provisions of this section must be made in a
form and contain the information prescribed by the authority. Applications are subject to
either a fee of $500 for each bond issue requested by a county or governmental unit or the
applicable fees under section 446A.087.

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

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

Sec. 15.

Minnesota Statutes 2008, section 469.177, subdivision 11, is amended to read:

Subd. 11.

Deduction for enforcement costs; appropriation.

(a) The county
treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to an
authority or municipality. The county treasurer shall pay the amount deducted to the
commissioner of management and budget for deposit in deleted text begin the state general deleted text end new text begin an account in
the special revenue new text end fund.

(b) The amounts deducted and paid under paragraph (a) are appropriated to the state
auditor for the cost of (1) the financial reporting of tax increment financing information
and (2) the cost of examining and auditing of authorities' use of tax increment financing
as provided under section 469.1771, subdivision 1. Notwithstanding section 16A.28 or
any other law to the contrary, this appropriation does not cancel and remains available
until spent.

(c) For taxes payable in 2002 and thereafter, the commissioner of revenue shall
increase the percent in paragraph (a) to a percent equal to the product of the percent in
paragraph (a) and the amount that the statewide tax increment levy for taxes payable in
2002 would have been without the class rate changes in this act and the elimination of
the general education levy in this act divided by the statewide tax increment levy for
taxes payable in 2002.

Sec. 16.

Minnesota Statutes 2008, section 518.165, subdivision 3, is amended to read:

Subd. 3.

Fees.

(a) A guardian ad litem appointed under either subdivision 1 or 2
may be appointed either as a volunteer or on a fee basis. If a guardian ad litem is appointed
on a fee basis, the court shall enter an order for costs, fees, and disbursements in favor
of the child's guardian ad litem. The order may be made against either or both parties,
except that any part of the costs, fees, or disbursements which the court finds the parties
are incapable of paying shall be borne by the state courts. The costs of court-appointed
counsel to the guardian ad litem shall be paid by the county in which the proceeding is
being held if a party is incapable of paying for them. Until the recommendations of the
task force created in Laws 1999, chapter 216, article 7, section 42, are implemented, the
costs of court-appointed counsel to a guardian ad litem in the Eighth Judicial District shall
be paid by the state courts if a party is incapable of paying for them. In no event may the
court order that costs, fees, or disbursements be paid by a party receiving public assistance
or legal assistance or by a party whose annual income falls below the poverty line as
established under United States Code, title 42, section 9902(2).

(b) In each fiscal year, the commissioner of management and budget shall deposit
guardian ad litem reimbursements in the deleted text begin general deleted text end new text begin special revenue new text end fund and credit them to a
separate account with the trial courts. The balance of this account is appropriated to the
trial courts and does not cancel but is available until expended. Expenditures by the state
court administrator's office from this account must be based on the amount of the guardian
ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 17.

Minnesota Statutes 2008, section 609.3241, is amended to read:

609.3241 PENALTY ASSESSMENT AUTHORIZED.

When a court sentences an adult convicted of violating section 609.322 or 609.324,
while acting other than as a prostitute, the court shall impose an assessment of not less
than $250 and not more than $500 for a violation of section 609.324, subdivision 2, or a
misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose
an assessment of not less than $500 and not more than $1,000. The mandatory minimum
portion of the assessment is to be used for the purposes described in section 626.558,
subdivision 2a, and is in addition to the surcharge required by section 357.021, subdivision
6. Any portion of the assessment imposed in excess of the mandatory minimum amount
shall be deleted text begin forwarded to the general deleted text end new text begin deposited in an account in the special revenue new text end fund and
is appropriated annually to the commissioner of public safety. The commissioner, with the
assistance of the General Crime Victims Advisory Council, shall use money received under
this section for grants to agencies that provide assistance to individuals who have stopped
or wish to stop engaging in prostitution. Grant money may be used to provide these
individuals with medical care, child care, temporary housing, and educational expenses.

Sec. 18.

Minnesota Statutes 2008, section 611.20, subdivision 3, is amended to read:

Subd. 3.

Reimbursement.

In each fiscal year, the commissioner of management
and budget shall deposit the payments in the deleted text begin general deleted text end new text begin special revenue new text end fund and credit them
to a separate account with the Board of Public Defense. The amount credited to this
account is appropriated to the Board of Public Defense.

The balance of this account does not cancel but is available until expended.
Expenditures by the board from this account for each judicial district public defense office
must be based on the amount of the payments received by the state from the courts in
each judicial district. A district public defender's office that receives money under this
subdivision shall use the money to supplement office overhead payments to part-time
attorneys providing public defense services in the district. By January 15 of each year,
the Board of Public Defense shall report to the chairs and ranking minority members of
the senate and house of representatives divisions having jurisdiction over criminal justice
funding on the amount appropriated under this subdivision, the number of cases handled
by each district public defender's office, the number of cases in which reimbursements
were ordered, the average amount of reimbursement ordered, and the average amount of
money received by part-time attorneys under this subdivision.

Sec. 19.

Laws 1994, chapter 531, section 1, is amended to read:

Section 1. SALE OF WILDLIFE LANDS.

Notwithstanding Minnesota Statutes, sections 84.027, subdivision 10; 92.45; 94.09
to 94.165; 97A.135; 103F.535, or any other law, the commissioner of administration may
sell lands located in the Gordy Yaeger wildlife management area in Olmsted county. The
consideration for the lands described in sections 2 and 3 shall be $950 per acre. The
conveyances shall be by deleted text begin guitclaim deleted text end new text begin quitclaim new text end deed in a form approved by the attorney
general and shall reserve to the state all minerals and mineral rights. The proceeds received
from the sales are to be deposited in new text begin an account in new text end the deleted text begin general deleted text end new text begin natural resources new text end fund and
are appropriated to the commissioner of natural resources for acquisition of replacement
wildlife management area lands. These sales are pursuant to the recommendation of the
Gordy Yaeger wildlife management area advisory committee.

ARTICLE 16

INCOME TAX

Section 1.

Minnesota Statutes 2009 Supplement, section 290.06, subdivision 2c,
is amended to read:

Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first deleted text begin $25,680 deleted text end new text begin $33,280 new text end , 5.35 percent;

(2) On all over deleted text begin $25,680 deleted text end new text begin $33,280 new text end , but not over deleted text begin $102,030 deleted text end new text begin $132,220 new text end , 7.05 percent;

(3) On all over deleted text begin $102,030 deleted text end new text begin $132,220, but not over $200,000 new text end , 7.85 percent new text begin ;
new text end

new text begin (4) On all over $200,000, 9.1 percent new text end .

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin $17,570 deleted text end new text begin $22,770 new text end , 5.35 percent;

(2) On all over deleted text begin $17,570 deleted text end new text begin $22,770 new text end , but not over deleted text begin $57,710 deleted text end new text begin $74,780 new text end , 7.05 percent;

(3) On all over deleted text begin $57,710 deleted text end new text begin $74,780, but not over $113,110 new text end , 7.85 percent new text begin ;
new text end

new text begin (4) On all over $113,110, 9.1 percent new text end .

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin $21,630 deleted text end new text begin $28,030 new text end , 5.35 percent;

(2) On all over deleted text begin $21,630 deleted text end new text begin $28,030 new text end , but not over deleted text begin $86,910 deleted text end new text begin $112,620 new text end , 7.05 percent;

(3) On all over deleted text begin $86,910 deleted text end new text begin $112,620, but not over $170,350 new text end , 7.85 percent new text begin ;
new text end

new text begin (4) On all over $170,350, 9.1 percent new text end .

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction
for United States government interest under section 290.01, subdivision 19b, clause
(1), and the subtractions under section 290.01, subdivision 19b, clauses (9), (10), (14),
(15), (16), and (18), after applying the allocation and assignability provisions of section
290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and (17),
and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), (9),
(10), (14), (15), (16), and (18).

new text begin (f) For taxable years beginning after December 31, 2013, the maximum tax rate
under this section is 7.85 percent, if the commissioner of management and budget
estimates in the February 2013 economic forecast that the unrestricted general fund
balance at the end of fiscal year 2013 equals or exceeds $500,000,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 290.06, subdivision 2d, is amended to read:

Subd. 2d.

Inflation adjustment of brackets.

(a) For taxable years beginning after
December 31, deleted text begin 2000 deleted text end new text begin 2010 new text end , the minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
percentage determined under paragraph (b). For the purpose of making the adjustment as
provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
rate brackets as they existed for taxable years beginning after December 31, deleted text begin 1999 deleted text end new text begin 2009 new text end ,
and before January 1, deleted text begin 2001 deleted text end new text begin 2011 new text end . The rate applicable to any rate bracket must not be
changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.

(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) the word deleted text begin "1999" deleted text end new text begin "2009" new text end shall be substituted for the word "1992." For
deleted text begin 2001 deleted text end new text begin 2011 new text end , the commissioner shall then determine the percent change from the 12 months
ending on August 31, deleted text begin 1999 deleted text end new text begin 2009 new text end , to the 12 months ending on August 31, deleted text begin 2000 deleted text end new text begin 2010 new text end , and
in each subsequent year, from the 12 months ending on August 31, deleted text begin 1999 deleted text end new text begin 2009 new text end , to the 12
months ending on August 31 of the year preceding the taxable year. The determination of
the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.

No later than December 15 of each year, the commissioner shall announce the
specific percentage that will be used to adjust the tax rate brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 3. new text begin ACCELERATED REINSTATEMENT OF PHASEOUT OF PERSONAL
AND DEPENDENT EXEMPTIONS AND LIMITATION OF ITEMIZED
DEDUCTIONS.
new text end

new text begin In determining net taxable income under Minnesota Statutes, section 290.01, for
taxable years beginning after December 31, 2009, and before January 1, 2011, sections 102
and 103 of Public Law 107-16, relating to the repeal of phaseout of personal exemptions
and the phaseout of overall limitation on itemized deductions, do not apply.
new text end

new text begin EFFECTIVE DATE. new text end

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