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HF 2088

1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:27pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to state government; amending certain employment and economic
1.3development provisions; establishing and modifying certain projects, grants,
1.4and programs; making technical changes; regulating certain activities and
1.5practices; defining terms; providing penalties; establishing working groups;
1.6regulating unemployment insurance; regulating labor standards and wages;
1.7providing for licensing and fees; amending Iron Range resources provisions;
1.8regulating certain facilities; regulating certain boards and committees; modifying
1.9certain Housing Finance Authority provisions; modifying Heritage Finance
1.10provisions; requiring certain reports; appropriating money;amending Minnesota
1.11Statutes 2008, sections 15.75, subdivision 5; 16B.54, subdivision 2; 16C.28,
1.12by adding a subdivision; 41A.02, subdivision 17; 41A.036, subdivisions 4, 5;
1.1384.94, subdivision 3; 85.0146, subdivision 1; 89A.08, subdivision 1; 115C.08,
1.14subdivision 4; 116J.035, subdivisions 1, 6; 116J.401, subdivision 2; 116J.424;
1.15116J.431, subdivisions 1, 2, 4, 6, by adding a subdivision; 116J.435, subdivision
1.163; 116J.554, subdivision 1; 116J.555, subdivision 1; 116J.68, subdivision 2;
1.17116J.8731, subdivisions 2, 3; 116L.03, subdivision 5; 116L.05, subdivision
1.185; 116L.20, subdivision 1; 116L.362, subdivision 1; 116L.364, subdivision
1.193; 116L.871, subdivision 1; 116L.96; 116O.115, subdivisions 2, 4; 123A.08,
1.20subdivision 1; 124D.49, subdivision 3; 129D.13, subdivisions 1, 2, 3; 129D.14,
1.21subdivisions 4, 5, 6; 129D.155; 154.001; 154.003; 154.19; 154.44, subdivision
1.221; 154.51; 160.276, subdivision 8; 177.27, subdivision 4; 177.30; 177.31;
1.23177.32; 177.42, subdivision 6, by adding a subdivision; 177.43, subdivision 3;
1.24178.02, subdivision 2; 181.723, by adding a subdivision; 182.656, subdivision 3;
1.25214.01, subdivision 3; 214.04, subdivision 3; 216B.1612, subdivision 2; 241.27,
1.26subdivision 1; 248.061, subdivision 3; 248.07, subdivisions 7, 8; 256J.626,
1.27subdivision 4; 256J.66, subdivision 1; 268.031; 268.035, subdivisions 2, 17, by
1.28adding subdivisions; 268.042, subdivision 3; 268.043; 268.044, subdivision 2;
1.29268.047, subdivisions 1, 2; 268.051, subdivisions 1, 4; 268.052, subdivision 2;
1.30268.053, subdivision 1; 268.057, subdivisions 4, 5; 268.0625, subdivision 1;
1.31268.066; 268.067; 268.069, subdivisions 1, 2; 268.07, subdivisions 1, 2, 3, 3b;
1.32268.084; 268.085, subdivisions 1, 2, 3, 3a, 4, 5, 6, 15; 268.095, subdivisions
1.331, 2, 10, 11; 268.101, subdivisions 1, 2; 268.103, subdivision 1, by adding
1.34a subdivision; 268.105, subdivisions 1, 2, 3a, 4, 5; 268.115, subdivision 5;
1.35268.125, subdivision 5; 268.135, subdivision 4; 268.145, subdivision 1; 268.18,
1.36subdivisions 1, 2, 4a; 268.186; 268.196, subdivisions 1, 2; 268.199; 268.211;
1.37268A.06, subdivision 1; 270.97; 298.22, subdivisions 2, 5a, 6, 7, 8, 10, 11;
1.38298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5; 298.2214,
1.39subdivision 1, by adding a subdivision; 298.223; 298.227; 298.28, subdivision
2.19d; 298.292, subdivision 2; 298.294; 298.296, subdivision 2; 298.2961; 298.297;
2.2326B.33, subdivisions 13, 19; 326B.46, subdivision 4; 326B.475, subdivisions
2.34, 7; 326B.49, subdivision 1; 326B.56, subdivision 4; 326B.58; 326B.815,
2.4subdivision 1; 326B.821, subdivision 2; 326B.86, subdivision 1; 326B.885,
2.5subdivision 2; 326B.89, subdivisions 3, 16; 326B.94, subdivision 4; 326B.972;
2.6326B.986, subdivisions 2, 5, 8; 327B.04, subdivisions 7, 8, by adding a
2.7subdivision; 327C.03, by adding a subdivision; 327C.095, subdivisions 12, 13;
2.8462A.05, subdivisions 14, 14a; 469.169, subdivision 3; 469.201, subdivisions 2,
2.94, 6, 7, 10, 11, 12; 469.202; 469.203, subdivisions 1, 2, 4; 469.204, subdivision
2.101, by adding a subdivision; 469.205; 469.207, subdivision 2; 580.07; proposing
2.11coding for new law in Minnesota Statutes, chapters 1; 116J; 137; 155A; 181;
2.12268; 298; 326B; repealing Minnesota Statutes 2008, sections 116J.402; 116J.413;
2.13116J.431, subdivision 5; 116J.58, subdivision 1; 116J.59; 116J.61; 116J.656;
2.14116L.16; 116L.88; 116U.65; 129D.13, subdivision 4; 268.085, subdivision 14;
2.15268.086, subdivisions 1, 2, 3, 5, 6, 7, 8, 9; 469.203, subdivision 3; 469.204,
2.16subdivisions 2, 3; Minnesota Rules, part 1350.8300.
2.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.18ARTICLE 1
2.19JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

2.20
Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
2.21    The amounts shown in this section summarize direct appropriations, by fund, made
2.22in this article.
2.23
2010
2011
Total
2.24
General
$
134,047,000
$
133,136,000
$
267,183,000
2.25
Workforce Development
17,976,000
17,876,000
35,852,000
2.26
Remediation
700,000
700,000
1,400,000
2.27
Workers' Compensation
22,574,000
22,574,000
45,148,000
2.28
Total
$
175,297,000
$
174,286,000
$
349,583,000

2.29
Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.
2.30    The sums shown in the columns marked "Appropriations" are appropriated to the
2.31agencies and for the purposes specified in this article. The appropriations are from the
2.32general fund, or another named fund, and are available for the fiscal years indicated
2.33for each purpose. The figures "2010" and "2011" used in this article mean that the
2.34appropriations listed under them are available for the fiscal year ending June 30, 2010, or
2.35June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
2.36year 2011. "The biennium" is fiscal years 2010 and 2011.
2.37
APPROPRIATIONS
2.38
Available for the Year
2.39
Ending June 30
2.40
2010
2011

3.1
3.2
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
3.3
Subdivision 1.Total Appropriation
$
58,277,000
$
57,877,000
3.4
Appropriations by Fund
3.5
2010
2011
3.6
General
40,630,000
40,330,000
3.7
Remediation
700,000
700,000
3.8
3.9
Workforce
Development
16,947,000
16,847,000
3.10The amounts that may be spent for each
3.11purpose are specified in the following
3.12subdivisions.
3.13
3.14
Subd. 2.Business and Community
Development
8,980,000
8,980,000
3.15
Appropriations by Fund
3.16
General
7,941,000
7,941,000
3.17
Remediation
700,000
700,000
3.18
3.19
Workforce
Development
339,000
339,000
3.20(a) $700,000 the first year and $700,000 the
3.21second year are from the remediation fund for
3.22contaminated site cleanup and development
3.23grants under Minnesota Statutes, section
3.24116J.554. This appropriation is available
3.25until expended.
3.26(b) $200,000 each year is from the general
3.27fund for a grant to WomenVenture for
3.28women's business development programs
3.29and for programs that encourage and assist
3.30women to enter nontraditional careers in the
3.31trades; manual and technical occupations;
3.32science, technology, engineering, and
3.33mathematics-related occupations; and green
3.34jobs. This appropriation may be matched
3.35dollar for dollar with any resources available
3.36from the federal government for these
3.37purposes with priority given to initiatives
4.1that have a goal of increasing by at least ten
4.2percent the number of women in occupations
4.3where women currently comprise less than 25
4.4percent of the workforce. The appropriation
4.5is available until expended.
4.6(c) $105,000 each year is from the general
4.7fund and $50,000 each year is from the
4.8workforce development fund for a grant to
4.9the Metropolitan Economic Development
4.10Association for continuing minority business
4.11development programs in the metropolitan
4.12area. This appropriation must be used for the
4.13sole purpose of providing free or reduced
4.14fee business consulting services to minority
4.15entrepreneurs and contractors.
4.16(d)(1) $500,000 each year is from the
4.17general fund for a grant to BioBusiness
4.18Alliance of Minnesota for bioscience
4.19business development programs to promote
4.20and position the state as a global leader
4.21in bioscience business activities. This
4.22appropriation is added to the department's
4.23base. These funds may be used to create,
4.24recruit, retain, and expand biobusiness
4.25activity in Minnesota; implement the
4.26destination 2025 statewide plan; update
4.27a statewide assessment of the bioscience
4.28industry and the competitive position of
4.29Minnesota-based bioscience businesses
4.30relative to other states and other nations;
4.31and develop and implement business and
4.32scenario-planning models to create, recruit,
4.33retain, and expand biobusiness activity in
4.34Minnesota.
5.1(2) The BioBusiness Alliance must report
5.2each year by February 15 to the committees
5.3of the house of representatives and the senate
5.4having jurisdiction over bioscience industry
5.5activity in Minnesota on the use of funds;
5.6the number of bioscience businesses and
5.7jobs created, recruited, retained, or expanded
5.8in the state since the last reporting period;
5.9the competitive position of the biobusiness
5.10industry; and utilization rates and results of
5.11the business and scenario-planning models
5.12and outcomes resulting from utilization of
5.13the business and scenario-planning models.
5.14(e)(1) Of the money available in the
5.15Minnesota Investment Fund, Minnesota
5.16Statutes, section 116J.8731, to the
5.17commissioner of the Department of
5.18Employment and Economic Development,
5.19up to $3,000,000 is appropriated in fiscal year
5.202010 for a loan to an aircraft manufacturing
5.21and assembly company, associated with the
5.22aerospace industry, for equipment utilized
5.23to establish an aircraft completion center
5.24at the Minneapolis-St. Paul International
5.25Airport. The finishing center must use the
5.26state's vocational training programs designed
5.27specifically for aircraft maintenance training,
5.28and to the extent possible, work to recruit
5.29employees from these programs. The center
5.30must create at least 200 new manufacturing
5.31jobs within 24 months of receiving the
5.32loan, and create not less than 500 new
5.33manufacturing jobs over a five-year period
5.34in Minnesota.
5.35(2) This loan is not subject to loan limitations
5.36under Minnesota Statutes, section 116J.8731,
6.1subdivision 5. Any match requirements
6.2under Minnesota Statutes, section 116J.8731,
6.3subdivision 3, may be made from current
6.4resources. This is a onetime appropriation
6.5and is effective the day following final
6.6enactment.
6.7(f) $65,000 each year is from the general
6.8fund for a grant to the Minnesota Inventors
6.9Congress, of which at least $6,500 must be
6.10used for youth inventors.
6.11(g) $200,000 the first year and $200,000 the
6.12second year are for the Office of Science and
6.13Technology. This is a onetime appropriation.
6.14(h) $500,000 the first year and $500,000 the
6.15second year are for a grant to Enterprise
6.16Minnesota, Inc., for the small business
6.17growth acceleration program under
6.18Minnesota Statutes, section 116O.115. This
6.19is a onetime appropriation and is available
6.20until expended.
6.21(i)(1) $100,000 each year is from the
6.22workforce development fund for a grant
6.23under Minnesota Statutes, section 116J.421,
6.24to the Rural Policy and Development
6.25Center at St. Peter, Minnesota. The grant
6.26shall be used for research and policy
6.27analysis on emerging economic and social
6.28issues in rural Minnesota, to serve as a
6.29policy resource center for rural Minnesota
6.30communities, to encourage collaboration
6.31across higher education institutions, to
6.32provide interdisciplinary team approaches
6.33to research and problem-solving in rural
6.34communities, and to administer overall
6.35operations of the center.
7.1(2) The grant shall be provided upon the
7.2condition that each state-appropriated
7.3dollar be matched with a nonstate dollar.
7.4Acceptable matching funds are nonstate
7.5contributions that the center has received and
7.6have not been used to match previous state
7.7grants. Any funds not spent the first year are
7.8available the second year.
7.9(j) Notwithstanding Minnesota Statutes,
7.10section 268.18, subdivision 2, $414,000 of
7.11funds collected for unemployment insurance
7.12administration under this subdivision is
7.13appropriated as follows: $250,000 to Lake
7.14County for ice storm damage; $64,000 is for
7.15the city of Green Isle for reimbursement of
7.16fire relief efforts and other expenses incurred
7.17as a result of the fire in the city of Green Isle;
7.18and $100,000 is to develop the construction
7.19mitigation pilot program to make grants for
7.20up to five projects statewide available to local
7.21government units to mitigate the impacts of
7.22transportation construction on local small
7.23business. These are onetime appropriations
7.24and are available until expended.
7.25(k) Up to $10,000,000 is appropriated
7.26from the Minnesota minerals 21st century
7.27fund to the commissioner of Iron Range
7.28resources and rehabilitation to make a grant
7.29or forgivable loan to a manufacturer of
7.30windmill blades at a facility to be located
7.31within the taconite tax relief area defined in
7.32Minnesota Statutes, section 273.134.
7.33(l) $1,000,000 is appropriated from the
7.34Minnesota minerals 21st century fund to
7.35the Board of Trustees of the Minnesota
8.1State Colleges and Universities for a grant
8.2to the Northeast Higher Education District
8.3for planning, design, and construction of
8.4classrooms and housing facilities for upper
8.5division students in the engineering program.
8.6(m)(1) $189,000 each year is appropriated
8.7from the workforce development fund for
8.8grants of $63,000 to eligible organizations
8.9each year to assist in the development of
8.10entrepreneurs and small businesses. Each
8.11state grant dollar must be matched with $1
8.12of nonstate funds. Any balance in the first
8.13year does not cancel but is available in the
8.14second year.
8.15(2) Three grants must be awarded to
8.16continue or to develop a program. One
8.17grant must be awarded to the Riverbend
8.18Center for Entrepreneurial Facilitation
8.19in Blue Earth County, and two to other
8.20organizations serving Faribault and Martin
8.21Counties. Grant recipients must report to the
8.22commissioner by February 1 of each year
8.23that the organization receives a grant with the
8.24number of customers served; the number of
8.25businesses started, stabilized, or expanded;
8.26the number of jobs created and retained; and
8.27business success rates. The commissioner
8.28must report to the house of representatives
8.29and senate committees with jurisdiction
8.30over economic development finance on the
8.31effectiveness of these programs for assisting
8.32in the development of entrepreneurs and
8.33small businesses.
8.34
Subd. 3.Workforce Development
46,871,000
46,471,000
9.1
Appropriations by Fund
9.2
General
30,263,000
29,963,000
9.3
9.4
Workforce
Development
16,608,000
16,508,000
9.5(a) $4,562,000 each year is from the general
9.6fund for the Minnesota job skills partnership
9.7program under Minnesota Statutes, sections
9.8116L.01 to 116L.17. If the appropriation for
9.9either year is insufficient, the appropriation
9.10for the other year is available. This
9.11appropriation is available until spent.
9.12(b) $8,800,000 each year is from the general
9.13fund for the state's vocational rehabilitation
9.14program under Minnesota Statutes, chapter
9.15268A.
9.16(c) $5,986,000 each year is from the general
9.17fund for the state services for the blind
9.18activities.
9.19(d) $2,380,000 each year is from the general
9.20fund for grants to centers for independent
9.21living under Minnesota Statutes, section
9.22268A.11.
9.23(e) $350,000 each year is from the general
9.24fund and $105,000 each year is from the
9.25workforce development fund for a grant
9.26under Minnesota Statutes, section 116J.8747,
9.27to Twin Cities RISE! to provide training to
9.28hard-to-train individuals. Funds unexpended
9.29in the first year are available for expenditure
9.30in the second year.
9.31(f) $150,000 each year is from the general
9.32fund and $50,000 each year is from the
9.33workforce development fund for a grant
9.34to Northern Connections in Perham to
9.35implement and operate a workforce program
10.1that provides one-stop supportive services
10.2to individuals as they transition into the
10.3workforce.
10.4(g) $100,000 each year is from the workforce
10.5development fund for a grant to the Ramsey
10.6County Workforce Investment Board for the
10.7development of the building lives program.
10.8This is a onetime appropriation.
10.9(h) $150,000 each year is from the general
10.10fund for a grant to Advocating Change
10.11Together for training, technical assistance,
10.12and resource materials for persons with
10.13developmental and mental illness disabilities.
10.14(i) $5,627,000 each year is from the general
10.15fund and $6,830,000 each year is from the
10.16workforce development fund for extended
10.17employment services for persons with severe
10.18disabilities or related conditions under
10.19Minnesota Statutes, section 268A.15. Of
10.20the general fund appropriation, $125,000
10.21each year is to supplement funds paid for
10.22wage incentives for the community support
10.23fund established in Minnesota Rules, part
10.243300.2045.
10.25(j) $250,000 the first year and $100,000
10.26the second year are for grants to Minnesota
10.27Diversified Industries, Inc., to provide
10.28progressive development and employment
10.29opportunities for people with disabilities.
10.30This appropriation is available in either
10.31year of the biennium. The budget base
10.32for Minnesota Diversified Industries, Inc.,
10.33is $175,000 each year in the 2012-2013
10.34biennium.
11.1(k) Of the money available to Minnesota from
11.2the American Recovery and Reinvestment
11.3Act of 2009, Public Law 111-5, and allocated
11.4to the Department of Employment and
11.5Economic Development for activities
11.6authorized under Title 1 of the Rehabilitation
11.7Act of 1973 as amended and Code of
11.8Federal Regulations, title 34, part 361, of its
11.9implementing regulations, $250,000 is for
11.10a grant to Minnesota Diversified Industries,
11.11Inc. to assist individuals with disabilities to
11.12obtain employment outcomes as defined in
11.13Code of Federal Regulations, title 34, part
11.14361.5 (B) (16). Funds expended must be
11.15used for activities allowed under section 103
11.16(a) of the Rehabilitation Act and Code of
11.17Federal Regulations, title 34, part 361.48.
11.18(l) $1,613,000 each year is from the general
11.19fund for grants to programs that provide
11.20employment support services to persons with
11.21mental illness under Minnesota Statutes,
11.22sections 268A.13 and 268A.14. Grants
11.23may be used for special projects for young
11.24people with mental illness transitioning from
11.25school to work and people with serious
11.26mental illness receiving services through
11.27a mental health court or civil commitment
11.28court. Special projects must demonstrate
11.29interagency collaboration. Up to $77,000
11.30each year may be used for administrative
11.31expenses.
11.32(m) $75,000 each year is from the workforce
11.33development fund for a grant to MN
11.34WORKS!, a nonprofit organization. The
11.35nonprofit organization must work on behalf
11.36of all licensed vendors to coordinate their
12.1efforts to respond to solicitations or other
12.2requests from private and governmental
12.3units as defined in Minnesota Statutes,
12.4section 471.59, subdivision 1, in order
12.5to increase employment opportunities for
12.6persons with disabilities. This is a onetime
12.7appropriation and is available in either year
12.8of the biennium. Any funds unexpended in
12.9the first year are available for expenditure in
12.10the second year.
12.11(n) $145,000 each year is from the general
12.12fund and $175,000 each year is from the
12.13workforce development fund for a grant
12.14under Minnesota Statutes, section 268A.03,
12.15to Rise, Inc. for the Minnesota Employment
12.16Center for People Who are Deaf or Hard of
12.17Hearing. Money not expended the first year
12.18is available the second year.
12.19(o) $100,000 each year is from the general
12.20fund and $200,000 each year is from the
12.21workforce development fund for a grant to
12.22Lifetrack Resources for its immigrant and
12.23refugee collaborative program, including
12.24those related to job-seeking skills and
12.25workplace orientation, intensive job
12.26development, functional work English, and
12.27on-site job coaching. This appropriation may
12.28also be used in Rochester.
12.29(p) $3,500,000 each year is from the
12.30workforce development fund for the
12.31Minnesota youth program under Minnesota
12.32Statutes, sections 116L.56 and 116L.561.
12.33(q) $1,375,000 each year is from the
12.34workforce development fund for the
13.1Opportunities Industrialization Center
13.2programs.
13.3(r) $1,200,000 each year is from the
13.4workforce development fund for grants for
13.5the Minneapolis summer youth employment
13.6program. The grants shall be used to fund
13.7up to 500 jobs for youth each summer. Of
13.8this appropriation, $300,000 each year is for
13.9a grant to the learn-to-earn summer youth
13.10employment program. The commissioner
13.11shall establish criteria for awarding the
13.12grants. This appropriation is available in
13.13either year of the biennium and is available
13.14until spent.
13.15(s) $750,000 each year is from the workforce
13.16development fund for a grant to the
13.17Minnesota Alliance of Boys and Girls
13.18Clubs to administer a statewide project
13.19of youth jobs skills development. This
13.20project, which may have career guidance
13.21components, including health and life skills,
13.22is to encourage, train, and assist youth in
13.23job-seeking skills, workplace orientation,
13.24and job-site knowledge through coaching.
13.25This grant requires a 25 percent match from
13.26nonstate resources.
13.27(t) $558,000 the first year and $558,000
13.28the second year are from the workforce
13.29development fund for grants to fund summer
13.30youth employment in St. Paul. The grants
13.31shall be used to fund up to 500 jobs for
13.32youth each summer. The commissioner shall
13.33establish criteria for awarding the grants.
13.34This appropriation is available in either year
13.35of the biennium and is available until spent.
14.1(u) $1,000,000 each year is from the
14.2workforce development fund for the
14.3youthbuild program under Minnesota
14.4Statutes, sections 116L.361 to 116L.366.
14.5(v) $100,000 each year is from the
14.6workforce development fund for grants
14.7for the indigenous earthkeepers program
14.8for American Indian youth environmental
14.9education and training. Funds must be
14.10used to provide programming for up to
14.1180 American Indian youth ages 14 to 19.
14.12The indigenous earthkeepers program must
14.13use the environment, with native language
14.14as its primary core, to develop student
14.15academic skills and knowledge at Center
14.16School and Healthy Nations Program of the
14.17Minneapolis American Indian Center. The
14.18program must foster a sense of civic and
14.19environmental responsibility by providing
14.20youth the opportunity to serve on small,
14.21natural, and urban resource crews in the
14.22Twin Cities metropolitan area and outside of
14.23the metropolitan area. In addition, it must
14.24build the capacity of these youths to improve
14.25their lives in an indigenous-inspired and
14.26culturally relevant manner. At a minimum,
14.27the program curriculum must include water
14.28studies, identification of waterway cleanup
14.29sites, cleanup of waterways significant to
14.30indigenous culture and education, plant
14.31identification, gardening, and indigenous
14.32language components. This is a onetime
14.33appropriation and is available until expended.
14.34(w) $340,000 each year is from the workforce
14.35development fund for grants to provide
14.36interpreters for a regional transition program
15.1that specializes in providing culturally
15.2appropriate transition services leading to
15.3employment for deaf, hard-of-hearing, and
15.4deaf-blind students.
15.5(x) $150,000 the first year is for a grant to
15.6Lutheran Social Service of Minnesota to
15.7increase capacity statewide for budget and
15.8debt counseling, debt management planning,
15.9and other debt management services. This
15.10is a onetime appropriation and is available
15.11until expended.
15.12(y) The first $1,450,000 deposited in each
15.13year of the biennium into the contingent
15.14account created under Minnesota Statutes,
15.15section 268.199, shall be transferred
15.16before the closing of each fiscal year to
15.17the workforce development fund created
15.18under Minnesota Statutes, section 116L.20.
15.19Deposits in excess of $1,450,000 shall be
15.20transferred before the closing of each fiscal
15.21year to the general fund.
15.22(z) $100,000 the first year is from the
15.23workforce development fund for a grant to a
15.24Southeast Asian mutual assistance nonprofit
15.25organization for an intensive intervention
15.26transitional employment training project
15.27to move refugee and immigrant welfare
15.28recipients into unsubsidized employment
15.29leading to economic self-sufficiency. An
15.30organization may apply for a grant in the form
15.31and manner established by the commissioner
15.32of employment and economic development.
15.33The organization that is awarded the grant
15.34must have experience providing the services
15.35required under this paragraph. The primary
16.1effort must be on intensive employment
16.2skills training, including workplace English
16.3and overcoming cultural barriers, and on
16.4specialized training in fields of work which
16.5involve a credit-based curriculum. For
16.6recipients without a high school diploma or
16.7a GED, extra effort shall be made to help
16.8the recipient meet the ability to benefit test
16.9so the recipient can receive financial aid
16.10for further training. During the specialized
16.11training, efforts should be made to involve
16.12the recipients with an internship program
16.13and retention specialist. This appropriation
16.14is not available until the commissioner of
16.15finance has determined that at least an equal
16.16amount has been committed from nonstate
16.17funds. This is a onetime appropriation and is
16.18available until expended.
16.19(aa) $1,000,000 each year is from reserve
16.20funds allocated to the Department of
16.21Employment and Economic Development
16.22under the American Recovery and
16.23Reinvestment Act of 2009, Public Law
16.24111-5, for Workforce Investment Act
16.25adult and displaced worker programs for
16.26on-the-job training for eligible persons in
16.27counties with high unemployment. This is a
16.28onetime appropriation.
16.29(bb)(1) $150,000 each year is from the
16.30workforce development fund for a grant
16.31to the nonprofit organization selected to
16.32administer the demonstration project for
16.33high-risk adults under Laws 2007, chapter
16.3454, article 1, section 19, in order to continue
16.35the project for a second biennium. This is a
17.1onetime appropriation and is available until
17.2expended.
17.3(2) The commissioners of the Housing
17.4Finance Agency and employment and
17.5economic development are directed to work
17.6with the commissioner of public safety
17.7to seek federal stimulus money available
17.8through the Office of Justice to continue the
17.9demonstration project under Laws 2007,
17.10chapter 54, article 1, section 19, at a level
17.11sufficient to reduce the rate per participant.
17.12(cc) All Wagner-Peyser funds available to
17.13the state for job seeker services under the
17.14American Recovery and Reinvestment Act of
17.152009, Public Law 111-5, must be allocated to
17.16workforce development centers for universal
17.17job seeker services.
17.18(dd)(1) All Workforce Investment Act
17.19discretionary funds available to the
17.20commissioner for workforce development
17.21under the American Recovery and
17.22Reinvestment Act of 2009, Public Law
17.23111-5, must first be allocated to replace
17.24reductions in state general fund or workforce
17.25development fund resources for employment
17.26and training or youth programs.
17.27(2) The commissioner shall not use any
17.28unallocated discretionary funds available to
17.29the department under the American Recovery
17.30and Reinvestment Act, Public Law 111-5,
17.31to hire full-time or part-time staff or enter
17.32into professional or technical contracts for
17.33any purpose other than administration of
17.34the unemployment insurance program or to
17.35provide services to job seekers, including
18.1assistance in filing for unemployment
18.2benefits.
18.3
Subd. 4.State-Funded Administration
2,426,000
2,426,000
18.4The transfer of funds to the governor's office
18.5for the Washington, D.C. office function is
18.6$20,000 each year.

18.7
Sec. 4. PUBLIC FACILITIES AUTHORITY
$
93,000
$
93,000
18.8For the small community wastewater
18.9treatment program under Minnesota Statutes,
18.10chapter 446A.

18.11
Sec. 5. EXPLORE MINNESOTA TOURISM
$
10,717,000
$
10,717,000
18.12(a) Of this amount, $12,000 each year is for a
18.13grant to the Upper Minnesota Film Office.
18.14(b)(1) To develop maximum private sector
18.15involvement in tourism, $500,000 the first
18.16year and $500,000 the second year must
18.17be matched by Explore Minnesota Tourism
18.18from nonstate sources. Each $1 of state
18.19incentive must be matched with $3 of private
18.20sector funding. Cash match is defined as
18.21revenue to the state or documented cash
18.22expenditures directly expended to support
18.23Explore Minnesota Tourism programs. Up
18.24to one-half of the private sector contribution
18.25may be in-kind or soft match. The incentive
18.26in the first year shall be based on fiscal
18.27year 2009 private sector contributions. The
18.28incentive in the second year will be based on
18.29fiscal year 2010 private sector contributions.
18.30This incentive is ongoing.
18.31(2) Funding for the marketing grants is
18.32available either year of the biennium.
19.1Unexpended grant funds from the first year
19.2are available in the second year.
19.3(3) Unexpended money from the general
19.4fund appropriations made under this section
19.5does not cancel but must be placed in a
19.6special marketing account for use by Explore
19.7Minnesota Tourism for additional marketing
19.8activities.
19.9(c) $325,000 the first year and $325,000 the
19.10second year are for the Minnesota Film and
19.11TV Board. The appropriation in each year
19.12is available only upon receipt by the board
19.13of $1 in matching contributions of money or
19.14in-kind contributions from nonstate sources
19.15for every $3 provided by this appropriation,
19.16except that each year up to $50,000 is
19.17available on July 1 even if the required
19.18matching contribution has not been received
19.19by that date.
19.20(d) $1,225,000 the first year and $1,225,000
19.21the second year are appropriated for a grant
19.22to the Minnesota Film and TV Board for
19.23the film jobs production program under
19.24Minnesota Statutes, section 116U.26. These
19.25appropriations are available in either year
19.26of the biennium and are available until
19.27expended.

19.28
Sec. 6. HOUSING FINANCE AGENCY
19.29
Subdivision 1.Total Appropriation
$
43,384,000
$
43,384,000
19.30The amounts that may be spent for each
19.31purpose are specified in the following
19.32subdivisions.
19.33This appropriation is for transfer to the
19.34housing development fund for the programs
20.1specified. Except as otherwise indicated, this
20.2transfer is part of the agency's permanent
20.3budget base.
20.4
Subd. 2.Challenge Program
7,393,000
7,393,000
20.5For the economic development and housing
20.6challenge program under Minnesota Statutes,
20.7section 462A.33. Of this amount, $1,395,000
20.8each year shall be made available during the
20.9first 11 months of the fiscal year exclusively
20.10for housing projects for American Indians.
20.11Any funds not committed to housing projects
20.12for American Indians in the first 11 months
20.13of the fiscal year shall be available for any
20.14eligible activity under Minnesota Statutes,
20.15section 462A.33. The base funding for this
20.16program is $9,393,000 each year in the
20.172012-2013 biennium.
20.18
Subd. 3.Housing Trust Fund
10,555,000
10,555,000
20.19For deposit in the housing trust fund account
20.20created under Minnesota Statutes, section
20.21462A.201, and used for the purposes
20.22provided in that section. The base funding
20.23for this program is $8,555,000 each year in
20.24the 2012-2013 biennium.
20.25
Subd. 4.Rental Assistance for Mentally Ill
2,638,000
2,638,000
20.26For a rental housing assistance program for
20.27persons with a mental illness or families with
20.28an adult member with a mental illness under
20.29Minnesota Statutes, section 462A.2097.
20.30
Subd. 5.Family Homeless Prevention
7,465,000
7,465,000
20.31For the family homeless prevention and
20.32assistance programs under Minnesota
20.33Statutes, section 462A.204.
20.34
Subd. 6.Home Ownership Assistance Fund
860,000
860,000
21.1For the home ownership assistance program
21.2under Minnesota Statutes, section 462A.21,
21.3subdivision 8. In fiscal years 2012 and 2013,
21.4the base shall be $885,000 each year.
21.5
Subd. 7.Affordable Rental Investment Fund
8,821,000
8,821,000
21.6(a) For the affordable rental investment fund
21.7program under Minnesota Statutes, section
21.8462A.21, subdivision 8b. The appropriation
21.9is to finance the acquisition, rehabilitation,
21.10and debt restructuring of federally assisted
21.11rental property and for making equity
21.12take-out loans under Minnesota Statutes,
21.13section 462A.05, subdivision 39.
21.14(b) The owner of federally assisted rental
21.15property must agree to participate in
21.16the applicable federally assisted housing
21.17program and to extend any existing
21.18low-income affordability restrictions on the
21.19housing for the maximum term permitted.
21.20The owner must also enter into an agreement
21.21that gives local units of government,
21.22housing and redevelopment authorities,
21.23and nonprofit housing organizations the
21.24right of first refusal if the rental property
21.25is offered for sale. Priority must be given
21.26among comparable federally assisted rental
21.27properties to properties with the longest
21.28remaining term under an agreement for
21.29federal assistance. Priority must also be
21.30given among comparable rental housing
21.31developments to developments that are or
21.32will be owned by local government units, a
21.33housing and redevelopment authority, or a
21.34nonprofit housing organization.
22.1(c) The appropriation also may be used to
22.2finance the acquisition, rehabilitation, and
22.3debt restructuring of existing supportive
22.4housing properties. For purposes of this
22.5subdivision, "supportive housing" means
22.6affordable rental housing with links to
22.7services necessary for individuals, youth, and
22.8families with children to maintain housing
22.9stability.
22.10(d) For the affordable rental investment fund
22.11program under Minnesota Statutes, section
22.12462A.21, subdivision 8b, in fiscal years 2012
22.13and 2013, the base is $8,996,000 each year.
22.14
Subd. 8.Housing Rehabilitation
4,287,000
4,287,000
22.15For the housing rehabilitation program
22.16under Minnesota Statutes, section 462A.05,
22.17subdivision 14, for rental housing
22.18developments.
22.19
22.20
Subd. 9.Homeownership Education,
Counseling, and Training
865,000
865,000
22.21For the homeownership education,
22.22counseling, and training program under
22.23Minnesota Statutes, section 462A.209.
22.24
Subd. 10.Capacity Building Grants
250,000
250,000
22.25For nonprofit capacity building grants
22.26under Minnesota Statutes, section 462A.21,
22.27subdivision 3b.
22.28
22.29
Subd. 11.Transfer of Disaster Relief
Contingency Funds
22.30$1,500,000 of the amount unobligated
22.31and unencumbered in the disaster relief
22.32contingency fund under Minnesota Statutes,
22.33section 462A.21, subdivision 29, is
22.34transferred to the housing trust fund under
23.1Minnesota Statutes, section 462A.201, for
23.2grants for temporary rental assistance for
23.3families with children who are homeless and
23.4in need of or utilizing an emergency shelter
23.5facility. This is a onetime transfer and is not
23.6added to the agency's permanent budget base.
23.7
23.8
Subd. 12.Demonstration Project for High-Risk
Adults
250,000
250,000
23.9$250,000 in fiscal year 2010 and $250,000
23.10in fiscal year 2011 are appropriated from
23.11the general fund to the commissioner of the
23.12Housing Finance Agency for grants to the
23.13nonprofit organization selected to administer
23.14the demonstration project for high-risk adults
23.15under Laws 2007, chapter 54, article 1,
23.16section 19, in order to continue the project
23.17for a second biennium. This is a onetime
23.18appropriation.

23.19
23.20
Sec. 7. DEPARTMENT OF LABOR AND
INDUSTRY
23.21
Subdivision 1.Total Appropriation
$
22,780,000
$
22,780,000
23.22
Appropriations by Fund
23.23
2010
2011
23.24
General
880,000
880,000
23.25
23.26
Workers'
Compensation
20,871,000
20,871,000
23.27
23.28
Workforce
Development
1,029,000
1,029,000
23.29The amounts that may be spent for each
23.30purpose are specified in the following
23.31subdivisions.
23.32
Subd. 2.Workers' Compensation
14,890,000
14,890,000
23.33This appropriation is from the workers'
23.34compensation fund.
23.35$200,000 each year is for grants to the
23.36Vinland Center for rehabilitation services.
24.1Grants shall be distributed as the department
24.2refers injured workers to the Vinland Center
24.3for rehabilitation services.
24.4
Subd. 3.Labor Standards/Apprenticeship
1,909,000
1,909,000
24.5
Appropriations by Fund
24.6
General
880,000
880,000
24.7
24.8
Workforce
Development
1,029,000
1,029,000
24.9(a) $879,000 each year is appropriated from
24.10the workforce development fund for the
24.11apprenticeship program under Minnesota
24.12Statutes, chapter 178, and includes
24.13$100,000 each year for labor education and
24.14advancement program grants and to expand
24.15and promote registered apprenticeship
24.16training in nonconstruction trade programs.
24.17(b) $150,000 each year is from the workforce
24.18development fund for prevailing wage
24.19enforcement.
24.20(c) $200,000 the first year and $200,000
24.21the second year are from the assigned risk
24.22safety account for independent contractor
24.23investigator services to ensure compliance
24.24with the state's independent contractor
24.25exemption certificate program under
24.26Minnesota Statutes, section 181.723.
24.27
Subd. 4.General Support
5,981,000
5,981,000
24.28This appropriation is from the workers'
24.29compensation fund.

24.30
24.31
Sec. 8. BUREAU OF MEDIATION
SERVICES
24.32
Subdivision 1.Total Appropriation
$
1,683,000
$
1,683,000
25.1The amounts that may be spent for each
25.2purpose are specified in the following
25.3subdivisions.
25.4
Subd. 2.Mediation Services
1,583,000
1,583,000
25.5
25.6
Subd. 3.Labor Management Cooperation
Grants
100,000
100,000
25.7$100,000 each year is for grants to area labor
25.8management committees. Grants may be
25.9awarded for a 12-month period beginning
25.10July 1 each year. Any unencumbered balance
25.11remaining at the end of the first year does not
25.12cancel but is available for the second year.

25.13
25.14
Sec. 9. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,703,000
$
1,703,000
25.15This appropriation is from the workers'
25.16compensation fund.

25.17
25.18
Sec. 10. MINNESOTA HISTORICAL
SOCIETY
25.19
Subdivision 1.Total Appropriation
$
23,137,000
$
22,921,000
25.20The amounts that may be spent for each
25.21purpose are specified in the following
25.22subdivisions.
25.23
Subd. 2.Education and Outreach
12,972,000
12,972,000
25.24Notwithstanding Minnesota Statutes, section
25.25138.668, the Minnesota Historical Society
25.26may not charge a fee for its general tours at
25.27the Capitol, but may charge fees for special
25.28programs other than general tours.
25.29
Subd. 3.Preservation and Access
9,703,000
9,703,000
25.30
Subd. 4.Fiscal Agent
25.31
(a) Minnesota International Center
43,000
43,000
25.32
(b) Minnesota Air National Guard Museum
16,000
0
26.1
(c) Minnesota Military Museum
100,000
0
26.2
(d) Farmamerica
128,000
128,000
26.3(e) $75,000 the first year and $75,000 the
26.4second year are for a grant to the city of
26.5Eveleth to be used for the support of the
26.6Hockey Hall of Fame Museum provided
26.7that it continues to operate in the city. This
26.8grant is in addition to and must not be
26.9used to supplant funding under Minnesota
26.10Statutes, section 298.28, subdivision 9c. This
26.11appropriation is added to the society's budget
26.12base.
26.13
(f) Memorials
26.14$50,000 is to the commissioner of
26.15administration to construct a workers
26.16memorial on the Capitol grounds in St.
26.17Paul. This appropriation is added to the
26.18appropriations in Laws 2006, chapter 258,
26.19section 12, subdivision 4; and Laws 2008,
26.20chapter 363, article 13, section 9.
26.21$50,000 is to the Capitol Area Architectural
26.22and Planning Board to design and construct
26.23a memorial to Hubert H. Humphrey in the
26.24Capitol area. This appropriation is added to
26.25the appropriations for the same purpose in
26.26Laws 1993, chapter 192, section 16; Laws
26.271999, chapter 250, article 1, section 13; and
26.28Laws 2008, chapter 363, article 13, section
26.299, and is available until expended.
26.30
(g) Balances Forward
26.31Any unencumbered balance remaining in
26.32this subdivision the first year does not cancel
26.33but is available for the second year of the
26.34biennium.
27.1
Subd. 5.Fund Transfer
27.2The Minnesota Historical Society may
27.3reallocate funds appropriated in and between
27.4subdivisions 2 and 3 for any program
27.5purposes and the appropriations are available
27.6in either year of the biennium.

27.7
Sec. 11. BOARD OF THE ARTS
27.8
Subdivision 1.Total Appropriation
$
8,624,000
$
8,624,000
27.9The amounts that may be spent for each
27.10purpose are specified in the following
27.11subdivisions.
27.12
Subd. 2.Operations and Services
651,000
651,000
27.13
Subd. 3.Grants Program
5,515,000
5,515,000
27.14
Subd. 4.Regional Arts Councils
2,458,000
2,458,000

27.15
27.16
Sec. 12. MINNESOTA HUMANITIES
CENTER
$
250,000
$
250,000

27.17
Sec. 13. PUBLIC BROADCASTING
$
2,295,000
$
2,015,000
27.18(a) The appropriations under this section are
27.19to the commissioner of administration for the
27.20purposes specified.
27.21(b) $280,000 is for a grant to Minnesota
27.22Public Radio to assist with conversion to a
27.23digital broadcast signal. This is a onetime
27.24appropriation.
27.25(c) $1,161,000 the first year and $1,161,000
27.26the second year are for matching grants for
27.27public television.
27.28(d) $200,000 the first year and $200,000
27.29the second year are for public television
27.30equipment grants. Equipment or matching
27.31grant allocations shall be made after
28.1considering the recommendations of the
28.2Minnesota Public Television Association.
28.3(e) $17,000 the first year and $17,000 the
28.4second year are for grants to the Twin Cities
28.5regional cable channel.
28.6(f) $287,000 the first year and $287,000 the
28.7second year are for community service grants
28.8to public educational radio stations.
28.9(g) $100,000 the first year and $100,000
28.10the second year are for equipment grants to
28.11public educational radio stations.
28.12(h) The grants in paragraphs (f) and (g)
28.13must be allocated after considering the
28.14recommendations of the Association of
28.15Minnesota Public Educational Radio Stations
28.16under Minnesota Statutes, section 129D.14.
28.17(i) $250,000 the first year and $250,000
28.18the second year are for equipment grants to
28.19Minnesota Public Radio, Inc.
28.20(j) Any unencumbered balance remaining the
28.21first year for grants to public television or
28.22radio stations does not cancel and is available
28.23for the second year.

28.24
Sec. 14. BOARD OF ACCOUNTANCY
$
505,000
$
505,000

28.25
28.26
28.27
28.28
Sec. 15. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
815,000
$
815,000

28.29
28.30
Sec. 16. BOARD OF COSMETOLOGIST
EXAMINERS
$
691,000
$
651,000

28.31
Sec. 17. BOARD OF BARBER EXAMINERS
$
193,000
$
188,000

29.1
29.2
Sec. 18. COMBATIVE SPORTS
COMMISSION
$
80,000
$
80,000
29.3This is a onetime appropriation. The
29.4Combative Sports Commission expires on
29.5July 1, 2011, unless the commissioner of
29.6finance determines that the commission's
29.7projected expenditures for the fiscal biennium
29.8ending June 30, 2013, will not exceed the
29.9commission's projected revenues for the
29.10fiscal biennium ending June 30, 2013, from
29.11fees and penalties authorized in Minnesota
29.12Statutes 2008, chapter 341.

29.13
Sec. 19. TRANSFERS
29.14By June 30, 2010, the commissioner of
29.15finance shall transfer $2,500,000, and by June
29.1630, 2011, $2,500,000 of the unencumbered
29.17balance in the workforce development fund
29.18to the general fund.

29.19
29.20
Sec. 20. LEGISLATIVE COORDINATING
COMMISSION
$
70,000
$
0
29.21From the general fund to the Legislative
29.22Coordinating Commission under Minnesota
29.23Statutes, section 3.303, for fiscal year 2010
29.24for the economic development strategy
29.25working group established in article 2,
29.26section 41.

29.27ARTICLE 2
29.28EMPLOYMENT AND ECONOMIC DEVELOPMENT
29.29- RELATED PROVISIONS

29.30    Section 1. Minnesota Statutes 2008, section 15.75, subdivision 5, is amended to read:
29.31    Subd. 5. Agreements with Department of Employment and Economic
29.32Development. The commissioner of employment and economic development may
29.33enter into agreements with regional entities established under subdivision 4 to prepare
30.1plans to ensure coordination of the department's business development, community
30.2development, workforce development, and trade functions with programs of local units of
30.3government and other public and private development agencies in the regions. The plans
30.4will identify regional development priorities and serve as a guide for the implementation
30.5of the department's programs in the regions.

30.6    Sec. 2. Minnesota Statutes 2008, section 16B.54, subdivision 2, is amended to read:
30.7    Subd. 2. Vehicles. (a) The commissioner may direct an agency to make a transfer of
30.8a passenger motor vehicle or truck currently assigned to it. The transfer must be made to
30.9the commissioner for use in the central motor pool. The commissioner shall reimburse an
30.10agency whose motor vehicles have been paid for with funds dedicated by the Constitution
30.11for a special purpose and which are assigned to the central motor pool. The amount of
30.12reimbursement for a motor vehicle is its average wholesale price as determined from the
30.13midwest edition of the National Automobile Dealers Association official used car guide.
30.14(b) To the extent that funds are available for the purpose, the commissioner may
30.15purchase or otherwise acquire additional passenger motor vehicles and trucks necessary
30.16for the central motor pool. The title to all motor vehicles assigned to or purchased or
30.17acquired for the central motor pool is in the name of the Department of Administration.
30.18(c) On the request of an agency, the commissioner may transfer to the central
30.19motor pool any passenger motor vehicle or truck for the purpose of disposing of it. The
30.20department or agency transferring the vehicle or truck must be paid for it from the motor
30.21pool revolving account established by this section in an amount equal to two-thirds of the
30.22average wholesale price of the vehicle or truck as determined from the midwest edition of
30.23the National Automobile Dealers Association official used car guide.
30.24(d) The commissioner shall provide for the uniform marking of all motor vehicles.
30.25Motor vehicle colors must be selected from the regular color chart provided by the
30.26manufacturer each year. The commissioner may further provide for the use of motor
30.27vehicles without marking by:
30.28(1) the governor;
30.29(2) the lieutenant governor;
30.30(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling
30.31Enforcement, and arson investigators of the Division of Fire Marshal in the Department of
30.32Public Safety;
30.33(4) the Financial Institutions Division and investigative staff of the Department
30.34of Commerce;
30.35(5) the Division of Disease Prevention and Control of the Department of Health;
31.1(6) the State Lottery;
31.2(7) criminal investigators of the Department of Revenue;
31.3(8) state-owned community service facilities in the Department of Human Services;
31.4(9) the investigative staff of the Department of Employment and Economic
31.5Development;
31.6(10) (9) the Office of the Attorney General; and
31.7(11) (10) the investigative staff of the Gambling Control Board.

31.8    Sec. 3. Minnesota Statutes 2008, section 84.94, subdivision 3, is amended to read:
31.9    Subd. 3. Identification and classification. The Department of Natural Resources,
31.10with the cooperation of the state Geological Survey, Departments the Department of
31.11Transportation, and Energy, Planning and Development the Department of Employment
31.12and Economic Development, outside of the metropolitan area as defined in section
31.13473.121 , shall conduct a program of identification and classification of potentially valuable
31.14publicly or privately owned aggregate lands located outside of urban or developed areas
31.15where aggregate mining is restricted, without consideration of their present land use. The
31.16program shall give priority to identification and classification in areas of the state where
31.17urbanization or other factors are or may be resulting in a loss of aggregate resources to
31.18development. Lands shall be classified as:
31.19(1) identified resources, being those containing significant aggregate deposits;
31.20(2) potential resources, being those containing potentially significant deposits and
31.21meriting further evaluation; or
31.22(3) subeconomic resources, being those containing no significant deposits.
31.23As lands are classified, the information on the classification shall be transmitted to
31.24each of the departments and agencies named in this subdivision, to the planning authority
31.25of the appropriate county and municipality, and to the appropriate county engineer. The
31.26county planning authority shall notify owners of land classified under this subdivision by
31.27publication in a newspaper of general circulation in the county or by mail.

31.28    Sec. 4. Minnesota Statutes 2008, section 116J.035, subdivision 1, is amended to read:
31.29    Subdivision 1. Powers. (a) The commissioner may:
31.30(1) apply for, receive, and expend money from municipal, county, regional, and
31.31other government agencies;
31.32(2) apply for, accept, and disburse grants and other aids from other public or private
31.33sources;
32.1(3) contract for professional services if such work or services cannot be satisfactorily
32.2performed by employees of the department or by any other state agency;
32.3(4) enter into interstate compacts to jointly carry out such research and planning with
32.4other states or the federal government where appropriate;
32.5(5) distribute informational material at no cost to the public upon reasonable request;
32.6and
32.7(6) enter into contracts necessary for the performance of the commissioner's duties
32.8with federal, state, regional, metropolitan, local, and other agencies or units of government;
32.9educational institutions, including the University of Minnesota. Contracts made pursuant
32.10to this section shall not be subject to the competitive bidding requirements of chapter 16C.
32.11(b) The commissioner may apply for, receive, and expend money made available
32.12from federal or other sources for the purpose of carrying out the duties and responsibilities
32.13of the commissioner pursuant to this chapter.
32.14(c) All moneys received by the commissioner pursuant to this chapter shall be
32.15deposited in the state treasury and, subject to section 3.3005, are appropriated to the
32.16commissioner for the purpose for which the moneys have been received. The money shall
32.17not cancel and shall be available until expended.

32.18    Sec. 5. Minnesota Statutes 2008, section 116J.035, subdivision 6, is amended to read:
32.19    Subd. 6. Receipt of gifts, money; appropriation. (a) The commissioner may
32.20accept gifts, bequests, grants, payments for services, and other public and private money
32.21to help finance the activities of the department.:
32.22(1) apply for, accept, and disburse gifts, bequests, grants, payments for services,
32.23loans, or other property from the United States, the state, private foundations, or any
32.24other source;
32.25(2) enter into an agreement required for the gifts, grants, or loans; and
32.26(3) hold, use, and dispose of its assets according to the terms of the gift, grant,
32.27loan, or agreement.
32.28(b) Money received by the commissioner under this subdivision must be deposited
32.29in a separate account in the state treasury and invested by the State Board of Investment.
32.30The amount deposited, including investment earnings, is appropriated to the commissioner
32.31to carry out duties under this section.

32.32    Sec. 6. Minnesota Statutes 2008, section 116J.401, subdivision 2, is amended to read:
32.33    Subd. 2. Duties; authorizations; limitations. (a) The commissioner of employment
32.34and economic development shall:
33.1(1) provide regional development commissions, the Metropolitan Council, and
33.2units of local government with information, technical assistance, training, and advice on
33.3using federal and state programs;
33.4(2) receive and administer the Small Cities Community Development Block Grant
33.5Program authorized by Congress under the Housing and Community Development Act of
33.61974, as amended;
33.7(3) receive and administer the section 107 technical assistance program grants
33.8authorized by Congress under the Housing and Community Development Act of 1974, as
33.9amended;
33.10(4) receive, administer, and supervise other state and federal grants and grant
33.11programs for planning, community affairs, community development purposes,
33.12employment and training services, and other state and federal programs assigned to the
33.13department by law or by the governor in accordance with section 4.07;
33.14(5) receive applications for state and federal grants and grant programs for planning,
33.15community affairs, and community development purposes, and other state and federal
33.16programs assigned to the department by law or by the governor in accordance with section
33.174.07 ;
33.18(6) act as the agent of, and cooperate with, the federal government in matters of
33.19mutual concern, including the administration of any federal funds granted to the state to
33.20aid in the performance of functions of the commissioner;
33.21(7) provide consistent, integrated employment and training services across the state;
33.22(8) administer the Wagner-Peyser Act, the Workforce Investment Act, and other
33.23federal employment and training programs;
33.24(9) establish the standards for all employment and training services administered
33.25under this chapter and chapters 116L, 248, 268, and 268A;
33.26(10) administer the aspects of the Minnesota family investment program, general
33.27assistance, and food stamps that relate to employment and training services, subject to the
33.28contract under section 116L.86, subdivision 1;
33.29(11) obtain reports from local service units and service providers for the purpose of
33.30evaluating the performance of employment and training services;
33.31(12) as requested, certify employment and training services, and decertify services
33.32that fail to comply with performance criteria according to standards established by the
33.33commissioner;
33.34(13) develop standards for the contents and structure of the local service unit plans
33.35and plans for Indian tribe employment and training services, review and comment on those
33.36plans, and approve or disapprove the plans;
34.1(14) supervise the county boards of commissioners, local service units, and any other
34.2units of government designated in federal or state law as responsible for employment and
34.3training programs;
34.4(15) establish administrative standards and payment conditions for providers of
34.5employment and training services;
34.6(16) enter into agreements with Indian tribes as necessary to provide employment
34.7and training services as appropriate funds become available;
34.8(17) cooperate with the federal government and its employment and training
34.9agencies in any reasonable manner as necessary to qualify for federal aid for employment
34.10and training services and money;
34.11(18) administer and supervise all forms of unemployment insurance provided for
34.12under federal and state laws;
34.13(19) provide current state and substate labor market information and forecasts, in
34.14cooperation with other agencies;
34.15(20) require all general employment and training programs that receive state funds
34.16to make available information about opportunities for women in nontraditional careers
34.17in the trades and technical occupations;
34.18(21) consult with the Rehabilitation Council for the Blind on matters pertaining to
34.19programs and services for the blind and visually impaired;
34.20(22) enter into agreements with other departments of the state and local units of
34.21government as necessary; and
34.22(23) establish and maintain administrative units necessary to perform administrative
34.23functions common to all divisions of the department.;
34.24(24) investigate, study, and undertake ways and means of promoting and encouraging
34.25the prosperous development and protection of the legitimate interest and welfare of
34.26Minnesota business, industry, and commerce, within and outside the state;
34.27(25) locate markets for manufacturers and processors and aid merchants in locating
34.28and contacting markets;
34.29(26) as necessary or useful for the proper execution of the powers and duties of the
34.30commissioner in promoting and developing Minnesota business, industry, and commerce,
34.31both within and outside the state, investigate and study conditions affecting Minnesota
34.32business, industry, and commerce; collect and disseminate information; and engage in
34.33technical studies, scientific investigations, statistical research, and educational activities;
34.34(27) plan and develop an effective business information service both for the direct
34.35assistance of business and industry of the state and for the encouragement of business and
34.36industry outside the state to use economic facilities within the state;
35.1(28) compile, collect, and develop periodically, or otherwise make available,
35.2information relating to current business conditions;
35.3(29) conduct or encourage research designed to further new and more extensive uses
35.4of the natural and other resources of the state and designed to develop new products
35.5and industrial processes;
35.6(30) study trends and developments in the industries of the state and analyze the
35.7reasons underlying the trends;
35.8(31) study costs and other factors affecting successful operation of businesses within
35.9the state;
35.10(32) make recommendations regarding circumstances promoting or hampering
35.11business and industrial development;
35.12(33) serve as a clearing house for business and industrial problems of the state;
35.13(34) advise small business enterprises regarding improved methods of accounting
35.14and bookkeeping;
35.15(35) cooperate with interstate commissions engaged in formulating and promoting
35.16the adoption of interstate compacts and agreements helpful to business, industry, and
35.17commerce;
35.18(36) cooperate with other state departments and with boards, commissions, and
35.19other state agencies in the preparation and coordination of plans and policies for the
35.20development of the state and for the use and conservation of its resources insofar as the
35.21use, conservation, and development may be appropriately directed or influenced by a
35.22state agency;
35.23(37) in connection with state, county, and municipal public works projects, assemble
35.24and coordinate information relative to the status, scope, cost, and employment possibilities
35.25and availability of materials, equipment, and labor, and recommend limitations on the
35.26public works;
35.27(38) gather current progress information with reference to public and private
35.28works projects of the state and its political subdivisions with reference to conditions of
35.29employment;
35.30(39) inquire into and report to the governor, when requested by the governor, with
35.31respect to any program of public state improvements and its financing; and request
35.32and obtain information from other state departments or agencies as may be needed for
35.33the report;
35.34(40) study changes in population and current trends and prepare plans and suggest
35.35policies for the development and conservation of the resources of the state;
36.1(41) confer and cooperate with the executive, legislative, or planning authorities of
36.2the United States, neighboring states and provinces, and the counties and municipalities
36.3of neighboring states, for the purpose of bringing about a coordination between the
36.4development of neighboring provinces, states, counties, and municipalities and the
36.5development of this state;
36.6(42) generally gather, compile, and make available statistical information relating to
36.7business, trade, commerce, industry, transportation, communication, natural resources,
36.8and other like subjects in this state, with authority to call upon other state departments for
36.9statistical data and results obtained by them and to arrange and compile that statistical
36.10information in a reasonable manner;
36.11(43) publish documents and annually convene regional meetings to inform
36.12businesses, local government units, assistance providers, and other interested persons of
36.13changes in state and federal law related to economic development;
36.14(44) annually convene conferences of providers of economic development-related
36.15financial and technical assistance for the purposes of exchanging information on economic
36.16development assistance, coordinating economic development activities, and formulating
36.17economic development strategies;
36.18(45) provide business with information on the economic benefits of energy
36.19conservation and on the availability of energy conservation assistance;
36.20(46) as part of the biennial budget process, prepare performance measures for each
36.21business loan or grant program within the jurisdiction of the commissioner. Measures
36.22include source of funds for each program, number of jobs proposed or promised at the
36.23time of application and the number of jobs created, estimated number of jobs retained, the
36.24average salary and benefits for the jobs resulting from the program, and the number of
36.25projects approved;
36.26(47) provide a continuous program of education for business people;
36.27(48) publish, disseminate, and distribute information and statistics;
36.28(49) promote and encourage the expansion and development of markets for
36.29Minnesota products;
36.30(50) promote and encourage the location and development of new businesses in the
36.31state as well as the maintenance and expansion of existing businesses and for that purpose
36.32cooperate with state and local agencies and individuals, both within and outside the state;
36.33(51) advertise and disseminate information as to natural resources, desirable
36.34locations, and other advantages for the purpose of attracting businesses to locate in this
36.35state;
37.1(52) aid the various communities in this state in attracting business to their
37.2communities;
37.3(53) advise and cooperate with municipal, county, regional, and other planning
37.4agencies and planning groups within the state for the purpose of promoting coordination
37.5between the state and localities as to plans and development in order to maintain a high
37.6level of gainful employment in private profitable production and achieve commensurate
37.7advancement in social and cultural welfare;
37.8(54) coordinate the activities of statewide and local planning agencies, correlate
37.9information secured from them and from state departments and disseminate information
37.10and suggestions to the planning agencies;
37.11(55) encourage and assist in the organization and functioning of local planning
37.12agencies where none exist; and
37.13(56) adopt measures calculated to promote public interest in and understanding of
37.14the problems of planning and, to that end, may publish and distribute copies of any plan
37.15or any report and may employ other means of publicity and education that will give full
37.16effect to the provisions of sections 116J.58 to 116J.63.
37.17(b) At the request of any governmental subdivision in paragraph (a), clause (53),
37.18the commissioner may provide planning assistance, which includes but is not limited to
37.19surveys, land use studies, urban renewal plans, technical services and other planning work
37.20to any city or other municipality in the state or perform similar planning work in any
37.21county, metropolitan, or regional area in the state. The commissioner must not perform
37.22the planning work with respect to a metropolitan or regional area which is under the
37.23jurisdiction for planning purposes of a county, metropolitan, regional, or joint planning
37.24body, except at the request or with the consent of the respective county, metropolitan,
37.25regional, or joint planning body.
37.26(c) The commissioner is authorized to:
37.27(1) receive and expend money from municipal, county, regional, and other planning
37.28agencies;
37.29(2) accept and disburse grants and other aids for planning purposes from the federal
37.30government and from other public or private sources;
37.31(3) utilize money received under clause (2) for the employment of consultants and
37.32other temporary personnel to assist in the supervision or performance of planning work
37.33supported by money other than state-appropriated money;
37.34(4) enter into contracts with agencies of the federal government, units of local
37.35government or combinations thereof, and with private persons that are necessary in the
37.36performance of the planning assistance function of the commissioner; and
38.1(5) assist any local government unit in filling out application forms for the federal
38.2grants-in-aid.
38.3(d) In furtherance of its planning functions, any city or town, however organized,
38.4may expend money and contract with agencies of the federal government, appropriate
38.5departments of state government, other local units of government, and with private
38.6persons.

38.7    Sec. 7. Minnesota Statutes 2008, section 116J.431, subdivision 1, is amended to read:
38.8    Subdivision 1. Grant program established; purpose. (a) The commissioner shall
38.9make grants to counties or cities to provide up to 50 percent of the capital costs of public
38.10infrastructure necessary for an eligible economic development project. The county or city
38.11receiving a grant must provide for the remainder of the costs of the project, either in cash
38.12or in kind. In-kind contributions may include the value of site preparation other than the
38.13public infrastructure needed for the project.
38.14For purposes of this section, "city" means a statutory or home rule charter city
38.15located outside the metropolitan area, as defined in section 473.121, subdivision 2.
38.16"Public infrastructure" means publicly owned physical infrastructure necessary to
38.17support economic development projects, including, but not limited to, sewers, water
38.18supply systems, utility extensions, streets, wastewater treatment systems, stormwater
38.19management systems, and facilities for pretreatment of wastewater to remove phosphorus.
38.20(b) The purpose of the grants made under this section is to keep or enhance jobs in
38.21the area, increase the tax base, or to expand or create new economic development.
38.22EFFECTIVE DATE.This section is effective the day following final enactment.

38.23    Sec. 8. Minnesota Statutes 2008, section 116J.431, is amended by adding a subdivision
38.24to read:
38.25    Subd. 1a. Definitions. (a) For purposes of this section, the following terms have
38.26the meanings given.
38.27(b) "City" means a statutory or home rule charter city located outside the
38.28metropolitan area, as defined in section 473.121, subdivision 2.
38.29(c) "County" means a county located outside the metropolitan area, as defined in
38.30section 473.121, subdivision 2.
38.31(d) "Public infrastructure" means publicly owned physical infrastructure necessary
38.32to support economic development projects, including, but not limited to, sewers, water
38.33supply systems, utility extensions, streets, wastewater treatment systems, storm water
38.34management systems, and facilities for pretreatment of wastewater to remove phosphorus.
39.1EFFECTIVE DATE.This section is effective the day following final enactment.

39.2    Sec. 9. Minnesota Statutes 2008, section 116J.431, subdivision 2, is amended to read:
39.3    Subd. 2. Eligible projects. An economic development project for which a county or
39.4city may be eligible to receive a grant under this section includes:
39.5(1) manufacturing;
39.6(2) technology;
39.7(3) warehousing and distribution;
39.8(4) research and development;
39.9(5) agricultural processing, defined as transforming, packaging, sorting, or grading
39.10livestock or livestock products into goods that are used for intermediate or final
39.11consumption, including goods for nonfood use; or
39.12(6) industrial park development that would be used by any other business listed
39.13in this subdivision.
39.14EFFECTIVE DATE.This section is effective the day following final enactment.

39.15    Sec. 10. Minnesota Statutes 2008, section 116J.431, subdivision 4, is amended to read:
39.16    Subd. 4. Application. (a) The commissioner must develop forms and procedures
39.17for soliciting and reviewing applications for grants under this section. At a minimum, a
39.18county or city must include in its application a resolution of the county or city council
39.19certifying that the required local match is available. The commissioner must evaluate
39.20complete applications for eligible projects using the following criteria:
39.21(1) the project is an eligible project as defined under subdivision 2;
39.22(2) the project will result in substantial public and private capital investment and
39.23provide substantial economic benefit to the county or city in which the project would
39.24be located;
39.25(3) the project is not relocating substantially the same operation from another
39.26location in the state, unless the commissioner determines the project cannot be reasonably
39.27accommodated within the county or city in which the business is currently located, or the
39.28business would otherwise relocate to another state; and
39.29(4) the project will create or maintain full-time jobs.
39.30(b) The determination of whether to make a grant for a site is within the discretion of
39.31the commissioner, subject to this section. The commissioner's decisions and application of
39.32the priorities are not subject to judicial review, except for abuse of discretion.
39.33EFFECTIVE DATE.This section is effective the day following final enactment.

40.1    Sec. 11. Minnesota Statutes 2008, section 116J.431, subdivision 6, is amended to read:
40.2    Subd. 6. Maximum grant amount. A county or city may receive no more than
40.3$1,000,000 in two years for one or more projects.
40.4EFFECTIVE DATE.This section is effective the day following final enactment.

40.5    Sec. 12. Minnesota Statutes 2008, section 116J.435, subdivision 3, is amended to read:
40.6    Subd. 3. Grant program established. (a) The commissioner shall make
40.7competitive grants to local governmental units to acquire and prepare land on which
40.8public infrastructure required to support an eligible project will be located, including
40.9demolition of structures and remediation of any hazardous conditions on the land, or to
40.10predesign, design, acquire, construct, furnish, and equip public infrastructure required to
40.11support an eligible project. The local governmental unit receiving a grant must provide
40.12for the remainder of the public infrastructure costs. The commissioner may waive
40.13the requirements related to an eligible project under subdivision 2 if a project would
40.14be eligible under this section but for the fact that its location requires infrastructure
40.15improvements to residential development.
40.16(b) The amount of a grant may not exceed the lesser of the cost of the public
40.17infrastructure or 50 percent of the sum of the cost of the public infrastructure plus the cost
40.18of the completed eligible project.
40.19(c) The purpose of the program is to keep or enhance jobs in the area, increase the
40.20tax base, or to expand or create new economic development through the growth of new
40.21bioscience businesses and organizations.

40.22    Sec. 13. [116J.438] MINNESOTA GREEN ENTERPRISE ASSISTANCE.
40.23(a) The commissioner of employment and economic development in consultation
40.24with the commissioner of commerce, shall lead a multiagency project to advise,
40.25promote, market, and coordinate state agency collaboration on green enterprise and
40.26green economy projects, as defined in section 116J.437. The multiagency project must
40.27include the commissioners of employment and economic development, natural resources,
40.28agriculture, transportation, and commerce, and the Pollution Control Agency. The
40.29project must involve collaboration with the chairs and ranking minority members of
40.30legislative committees overseeing energy policy and energy finance, state agencies,
40.31local governments, representatives from business and agriculture, and other interested
40.32stakeholders. The objective of the project is to utilize existing state resources to expedite
40.33the delivery of grants, licenses, permits, and other state authorizations and approvals for
41.1green economy projects. The commissioner shall appoint a lead person to coordinate
41.2green enterprise assistance activities.
41.3(b) The commissioner of employment and economic development shall seek out and
41.4may select persons from the business community to assist the commissioner in project
41.5activities.
41.6(c) The commissioner may accept gifts, contributions, and in-kind services for the
41.7purposes of this section, under the authority provided in section 116J.035, subdivision
41.81. Any funds received must be placed in a special revenue account for the purposes of
41.9this section.
41.10EFFECTIVE DATE.This section is effective the day following final enactment.

41.11    Sec. 14. Minnesota Statutes 2008, section 116J.554, subdivision 1, is amended to read:
41.12    Subdivision 1. Authority. (a) The commissioner may make a grant to an applicant
41.13development authority to pay for up to 75 percent of the project costs for a qualifying site.
41.14(b) The commissioner may also make a grant to an applicant development authority
41.15to pay up to 75 percent or $50,000, whichever is less, toward the cost of performing
41.16contaminant investigations and the development of a response action plan for a qualifying
41.17site.
41.18(c) The commissioner may also make a grant to an applicant to fill a site that would
41.19represent more than 50 percent of the remaining land in a city suitable for industrial
41.20development if it were properly filled.
41.21(d) The determination of whether to make a grant for a qualifying site is within the
41.22sole discretion of the commissioner, subject to the process provided by this section, and
41.23available unencumbered money in the appropriation. The commissioner's decisions and
41.24application of the priorities under section 116J.555 are not subject to judicial review,
41.25except for abuse of discretion.
41.26(e) The total amount of money provided in grants under paragraph (b) may not
41.27exceed $250,000 $500,000 per fiscal year.
41.28(f) In making grants under paragraph (b), the commissioner shall give priority to
41.29applicants that have not received a grant under paragraph (a) or section 473.252 during
41.30the year ending on the date of application.
41.31EFFECTIVE DATE.This section is effective the day following final enactment.

41.32    Sec. 15. Minnesota Statutes 2008, section 116J.555, subdivision 1, is amended to read:
42.1    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
42.2will exceed the available appropriations and the agency will be able to provide grants to
42.3only some of the applicant development authorities.
42.4    (b) If applications for grants for qualified sites exceed the available appropriations,
42.5the agency shall make grants for sites that, in the commissioner's judgment, provide
42.6the highest return in public benefits for the public costs incurred and that meet all the
42.7requirements provided by law. In making this judgment, the commissioner shall consider
42.8the following factors:
42.9    (1) the recommendations or ranking of projects by the commissioner of the Pollution
42.10Control Agency regarding the potential threat to public health and the environment that
42.11would be reduced or eliminated by completion of each of the response action plans;
42.12    (2) the potential increase in the property tax base of the local taxing jurisdictions,
42.13considered relative to the fiscal needs of the jurisdictions, that will result from
42.14developments that will occur because of completion of each of the response action plans;
42.15    (3) the social value to the community of the cleanup and redevelopment of the site,
42.16including the importance of development of the proposed public facilities on each of
42.17the sites;
42.18    (4) the probability that each site will be cleaned up without use of government
42.19money in the reasonably foreseeable future by considering but not limited to the current
42.20market value of the site versus the cleanup cost;
42.21    (5) the amount of cleanup costs for each site; and
42.22    (6) the amount of the commitment of municipal or other local resources to pay for
42.23the cleanup costs.
42.24    The factors are not listed in a rank order of priority; rather the commissioner may
42.25weigh each factor, depending upon the facts and circumstances, as the commissioner
42.26considers appropriate. The commissioner may consider other factors that affect the net
42.27return of public benefits for completion of the response action plan. The commissioner,
42.28notwithstanding the listing of priorities and the goal of maximizing the return of public
42.29benefits, shall make grants that distribute available money to sites both within and outside
42.30of the metropolitan area. The commissioner shall provide a written statement of the
42.31supporting reasons for each grant. Unless sufficient applications are not received for
42.32qualifying sites outside of the metropolitan area, at least 25 35 percent of the money
42.33provided as grants must be made for sites located outside of the metropolitan area.
42.34EFFECTIVE DATE.This section is effective the day following final enactment.

43.1    Sec. 16. [116J.6581] MINNESOTA SCIENCE AND TECHNOLOGY
43.2ECONOMIC DEVELOPMENT PROJECT.
43.3(a) The commissioner of employment and economic development shall lead a
43.4public-private project with science and technology experts from public, academic, and
43.5private sectors to advise state agency collaboration to design, coordinate, and administer a
43.6strategic science and technology program for the state designed to promote the welfare of
43.7the people of the state, maximize the economic growth of the state, and create and retain
43.8jobs in the state's industrial base through enhancement of Minnesota's:
43.9(1) high technology research and development capabilities;
43.10(2) product and process innovation and commercialization;
43.11(3) high technology manufacturing capabilities;
43.12(4) science and technology business environment; and
43.13(5) science and technology workforce preparation.
43.14(b) Project membership shall consist of science and technology experts from
43.15public, academic, and private sectors. A member must have a background in science or
43.16technology in order to serve on the project. The project members shall consist of at least
43.1713 members as follows:
43.18(1) a representative of the University of Minnesota;
43.19(2) a representative of Minnesota State Colleges and Universities;
43.20(3) the chief executive officer of Mayo Clinic or a designee; and
43.21(4) six chief executive officers or designees from science- or technology-oriented
43.22companies and four representatives from science- and technology-oriented trade
43.23organizations.
43.24(c) The commissioner of employment and economic development must report
43.25by January 15, 2010, to the legislative committees having jurisdiction over science
43.26and technology and economic development policy and finance on the activities of the
43.27project and must recommend changes or additions to its organization, including specific
43.28recommendations for necessary legislation.

43.29    Sec. 17. Minnesota Statutes 2008, section 116J.68, subdivision 2, is amended to read:
43.30    Subd. 2. Duties. The bureau shall:
43.31(a) (1) provide information and assistance with respect to all aspects of business
43.32planning and business management related to the start-up, operation, or expansion of
43.33a small business in Minnesota;
43.34(b) (2) refer persons interested in the start-up, operation, or expansion of a small
43.35business in Minnesota to assistance programs sponsored by federal agencies, state
44.1agencies, educational institutions, chambers of commerce, civic organizations, community
44.2development groups, private industry associations, and other organizations or to the
44.3business assistance referral system established by the Minnesota Project Outreach
44.4Corporation;
44.5(c) (3) plan, develop, and implement a master file of information on small business
44.6assistance programs of federal, state, and local governments, and other public and private
44.7organizations so as to provide comprehensive, timely information to the bureau's clients;
44.8(d) (4) employ staff with adequate and appropriate skills and education and training
44.9for the delivery of information and assistance;
44.10(e) (5) seek out and utilize, to the extent practicable, contributed expertise and
44.11services of federal, state, and local governments, educational institutions, and other public
44.12and private organizations;
44.13(f) (6) maintain a close and continued relationship with the director of the
44.14procurement program within the Department of Administration so as to facilitate the
44.15department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the
44.16small targeted group business and economically disadvantaged business program of the
44.17state;
44.18(g) (7) develop an information system which will enable the commissioner and other
44.19state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
44.20business development and growth in the state. All executive branch agencies of state
44.21government and the secretary of state shall to the extent practicable, assist the bureau in
44.22the development and implementation of the information system;
44.23(h) (8) establish and maintain a toll free telephone number so that all small business
44.24persons anywhere in the state can call the bureau office for assistance. An outreach
44.25program shall be established to make the existence of the bureau well known to its
44.26potential clientele throughout the state. If the small business person requires a referral to
44.27another provider the bureau may use the business assistance referral system established by
44.28the Minnesota Project Outreach Corporation;
44.29(i) (9) conduct research and provide data as required by the state legislature;
44.30(j) (10) develop and publish material on all aspects of the start-up, operation, or
44.31expansion of a small business in Minnesota;
44.32(k) (11) collect and disseminate information on state procurement opportunities,
44.33including information on the procurement process;
44.34(l) (12) develop a public awareness program through the use of newsletters, personal
44.35contacts, and electronic and print news media advertising about state assistance programs
45.1for small businesses, including those programs specifically for socially disadvantaged
45.2small business persons;
45.3(m) (13) enter into agreements with the federal government and other public and
45.4private entities to serve as the statewide coordinator or host agency for the federal small
45.5business development center program under United States Code, title 15, section 648; and
45.6(n) (14) assist providers in the evaluation of their programs and the assessment of
45.7their service area needs. The bureau may establish model evaluation techniques and
45.8performance standards for providers to use.

45.9    Sec. 18. Minnesota Statutes 2008, section 116J.8731, subdivision 2, is amended to read:
45.10    Subd. 2. Administration. The commissioner shall administer the fund as part of
45.11the Small Cities Development Block Grant Program. Funds shall be made available to
45.12local communities and recognized Indian tribal governments in accordance with the rules
45.13adopted for economic development grants in the small cities community development
45.14block grant program, except that all units of general purpose local government are eligible
45.15applicants for Minnesota investment funds. The commissioner may also make funds
45.16available within the department for eligible expenditures under subdivision 3, clause
45.17(2). A home rule charter or statutory city, county, or town may loan or grant money
45.18received from repayment of funds awarded under this section to a regional development
45.19commission, other regional entity, or statewide community capital fund as determined by
45.20the commissioner, to capitalize or to provide the local match required for capitalization of
45.21a regional or statewide revolving loan fund.

45.22    Sec. 19. Minnesota Statutes 2008, section 116J.8731, subdivision 3, is amended to read:
45.23    Subd. 3. Eligible expenditures. The money appropriated for this section may
45.24be used to provide fund:
45.25(1) grants for infrastructure, loans, loan guarantees, interest buy-downs, and other
45.26forms of participation with private sources of financing, provided that a loan to a private
45.27enterprise must be for a principal amount not to exceed one-half of the cost of the project
45.28for which financing is sought.; and
45.29(2) strategic investments in renewable energy market development, such as low
45.30interest loans for renewable energy equipment manufacturing, training grants to support
45.31renewable energy workforce, development of a renewable energy supply chain that
45.32represents and strengthens the industry throughout the state, and external marketing to
45.33garner more national and international investment into Minnesota's renewable sector.
46.1Expenditures in external marketing for renewable energy market development are not
46.2subject to the limitations in clause (1).

46.3    Sec. 20. [116J.997] PROGRAM ACCOUNTABILITY REQUIREMENTS.
46.4    Subdivision 1. Accountability measurement. By October 1, 2009, the
46.5commissioner of employment and economic development shall develop a uniform
46.6accountability report for economic development or workforce related programs funded in
46.7whole or in part by state or federal funds. The commissioner shall also develop a formula
46.8for measuring the return on investment for each program and a comparison of the return
46.9on investment of all programs funded in whole or in part by state or federal funds. The
46.10requirements of this section apply to programs administered directly by the commissioner
46.11or administered by other employment organizations under a grant made by the department.
46.12The report and formula required by this subdivision shall be submitted to the chairs and
46.13ranking minority members of the committees of the house of representatives and senate
46.14having jurisdiction over economic development and workforce policy and finance by
46.15October 15, 2009, for review and comment.
46.16    Subd. 2. Report to the legislature. By December 31 of each even-numbered
46.17year the commissioner must report to the chairs and the ranking minority members of
46.18the committees of the house of representatives and the senate having jurisdiction over
46.19economic development and workforce policy and finance the following information for
46.20each program subject to the requirements of subdivision 1:
46.21(1) the target population;
46.22(2) the number of jobs affected by the program, including the number of net new
46.23jobs created in the state and the average annual wage per job;
46.24(3) the number of individuals leaving the unemployment compensation program as
46.25a result of the program;
46.26(4) the number of individuals leaving the Minnesota Family Investment Program
46.27support as a result of the program;
46.28(5) the region of the state in which the program operated;
46.29(6) the amount of state or federal funds allocated to the program;
46.30(7) the return on investment as calculated by the formula developed by the
46.31commissioner; and
46.32(8) the dollar amount and percentage of the total grant used for administrative
46.33expenses.
46.34    Subd. 3. Report to the commissioner. A recipient of a grant made by or through
46.35the department must report to the commissioner by September 1 of each even-numbered
47.1year on each of the items in subdivision 2 for each program it administers. The report
47.2must be in a format prescribed by the commissioner.
47.3Beginning November 1, 2009, the commissioner shall provide notice to grant
47.4applicants and recipients regarding the data collection and reporting requirements under
47.5this subdivision and must provide technical assistance to applicants and recipients to assist
47.6in complying with the requirements of this subdivision.
47.7    Subd. 4. Biennial budget request. The information collected and reported under
47.8subdivisions 2 and 3 shall be included in budgets submitted to the legislature under
47.9section 16A.11.
47.10EFFECTIVE DATE.This section is effective the day following final enactment.

47.11    Sec. 21. Minnesota Statutes 2008, section 116L.03, subdivision 5, is amended to read:
47.12    Subd. 5. Terms. The terms of appointed members shall be for four years except for
47.13the initial appointments. The initial appointments of the governor shall have the following
47.14terms: two members each for one, two, three, and four years. No member shall serve
47.15more than two terms, and no person shall be appointed after December 31, 2001, for any
47.16term that would cause that person to serve a total of more than eight years on the board.
47.17Compensation for board members is as provided in section 15.0575, subdivision 3.

47.18    Sec. 22. Minnesota Statutes 2008, section 116L.05, subdivision 5, is amended to read:
47.19    Subd. 5. Use of workforce development funds. After March 1 of any fiscal year,
47.20the board may use workforce development funds for the purposes outlined in sections
47.21116L.02, 116L.04, and 116L.10 to 116L.14, or to provide incumbent worker training
47.22services under section 116L.18 if the following conditions have been met:
47.23    (1) the board examines relevant economic indicators, including the projected
47.24number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of
47.25declining and expanding industries, the number of initial applications for and the number
47.26of exhaustions of unemployment benefits, job vacancy data, and any additional relevant
47.27information brought to the board's attention;
47.28    (2) the board accounts for all allocations made in section 116L.17, subdivision 2;
47.29    (3) based on the past expenditures and projected revenue, the board estimates future
47.30funding needs for services under section 116L.17 for the remainder of the current fiscal
47.31year and the next fiscal year;
47.32    (4) the board determines there will be unspent funds after meeting the needs of
47.33dislocated workers in the current fiscal year and there will be sufficient revenue to meet
47.34the needs of dislocated workers in the next fiscal year; and
48.1    (5) the board reports its findings in clauses (1) to (4) to the chairs of legislative
48.2committees with jurisdiction over the workforce development fund, to the commissioners
48.3of revenue and finance, and to the public.

48.4    Sec. 23. Minnesota Statutes 2008, section 116L.20, subdivision 1, is amended to read:
48.5    Subdivision 1. Determination and collection of special assessment. (a) In addition
48.6to amounts due from an employer under the Minnesota unemployment insurance program,
48.7each employer, except an employer making reimbursements is liable for a special
48.8assessment levied at the rate of .10 percent per year on all taxable wages, as defined in
48.9section 268.035, subdivision 24, except that effective July 1, 2009, until June 30, 2011, the
48.10special assessment shall be levied at a rate of .12 percent per year on all taxable wages as
48.11defined in section 268.035, subdivision 24. The assessment shall become due and be paid
48.12by each employer on the same schedule and in the same manner as other amounts due
48.13from an employer under section 268.051, subdivision 1.
48.14    (b) The special assessment levied under this section shall be subject to the same
48.15requirements and collection procedures as any amounts due from an employer under the
48.16Minnesota unemployment insurance program.

48.17    Sec. 24. Minnesota Statutes 2008, section 116L.362, subdivision 1, is amended to read:
48.18    Subdivision 1. Generally. (a) The commissioner shall make grants to eligible
48.19organizations for programs to provide education and training services to targeted youth.
48.20The purpose of these programs is to provide specialized training and work experience for
48.21targeted youth who have not been served effectively by the current educational system.
48.22The programs are to include a work experience component with work projects that
48.23result in the rehabilitation, improvement, or construction of (1) residential units for the
48.24homeless, or; (2) improvements to the energy efficiency and environmental health of
48.25residential units and other green jobs purposes; (3) facilities to support community garden
48.26projects; or (4) education, social service, or health facilities which are owned by a public
48.27agency or a private nonprofit organization.
48.28(b) Eligible facilities must principally provide services to homeless or very low
48.29income individuals and families, and include the following:
48.30(1) Head Start or day care centers;
48.31(2) homeless, battered women, or other shelters;
48.32(3) transitional housing;
48.33(4) youth or senior citizen centers; and
48.34(5) community health centers.; and
49.1(6) community garden facilities.
49.2Two or more eligible organizations may jointly apply for a grant. The commissioner
49.3shall administer the grant program.

49.4    Sec. 25. Minnesota Statutes 2008, section 116L.364, subdivision 3, is amended to read:
49.5    Subd. 3. Work experience component. A work experience component must be
49.6included in each program. The work experience component must provide vocational skills
49.7training in an industry where there is a viable expectation of job opportunities. A training
49.8subsidy, living allowance, or stipend, not to exceed an amount equal to 100 percent of the
49.9poverty line for a family of two as defined in United States Code, title 42, section 673,
49.10paragraph (2), may be provided to program participants. The wage or stipend must be
49.11provided to participants who are recipients of public assistance in a manner or amount
49.12which will not reduce public assistance benefits. The work experience component must be
49.13designed so that work projects result in (1) the expansion or improvement of residential
49.14units for homeless persons and very low income families, or ; (2) improvements to the
49.15energy efficiency and environmental health of residential units; (3) facilities to support
49.16community garden projects; or (4) rehabilitation, improvement, or construction of eligible
49.17education, social service, or health facilities that principally serve homeless or very low
49.18income individuals and families. Any work project must include direct supervision by
49.19individuals skilled in each specific vocation. Program participants may earn credits
49.20toward the completion of their secondary education from their participation in the work
49.21experience component.

49.22    Sec. 26. Minnesota Statutes 2008, section 116L.871, subdivision 1, is amended to read:
49.23    Subdivision 1. Responsibility and certification. (a) Unless prohibited by federal
49.24law or otherwise determined by state law, a local service unit is responsible for the
49.25delivery of employment and training services. As of July 1, 1998, Employment and
49.26training services may be delivered by certified employment and training service providers.
49.27(b) The local service unit's employment and training service provider must meet the
49.28certification standards in this subdivision if the county requests that they be certified
49.29to deliver any of the following employment and training services and programs: wage
49.30subsidies; general assistance grant diversion; food stamp employment and training
49.31programs; community work experience programs; and MFIP employment services.
49.32(c) The commissioner shall certify a local service unit's service provider to provide
49.33these employment and training services and programs if the commissioner determines
49.34that the provider has:
50.1(1) past experience in direct delivery of the programs specified in paragraph (b);
50.2(2) staff capabilities and qualifications, including adequate staff to provide timely
50.3and effective services to clients, and proven staff experience in providing specific services
50.4such as assessments, career planning, job development, job placement, support services,
50.5and knowledge of community services and educational resources;
50.6(3) demonstrated effectiveness in providing services to public assistance recipients
50.7and other economically disadvantaged clients; and
50.8(4) demonstrated administrative capabilities, including adequate fiscal and
50.9accounting procedures, financial management systems, participant data systems, and
50.10record retention procedures.
50.11(d) When the only service provider that meets the criterion in paragraph (c), clause
50.12(1), has been decertified, according to subdivision 1a, in that local service unit, the
50.13following criteria shall be substituted: past experience in direct delivery of multiple,
50.14coordinated, nonduplicative services, including outreach, assessments, identification of
50.15client barriers, employability development plans, and provision or referral to support
50.16services.

50.17    Sec. 27. Minnesota Statutes 2008, section 116L.96, is amended to read:
50.18116L.96 DISPLACED HOMEMAKER PROGRAMS.
50.19The commissioner of economic security employment and economic development
50.20may enter into arrangements with existing private or nonprofit organizations and agencies
50.21with experience in dealing with displaced homemakers to provide counseling and
50.22training services. The commissioner shall assist displaced homemakers in applying for
50.23appropriate welfare programs and shall take welfare allowances received into account
50.24in setting the stipend level. Income received as a stipend under these programs shall
50.25be totally disregarded for purposes of determining eligibility for and the amount of a
50.26general assistance grant.

50.27    Sec. 28. Minnesota Statutes 2008, section 116O.115, subdivision 2, is amended to read:
50.28    Subd. 2. Qualified company. A company is qualified to receive assistance under
50.29the small business growth acceleration program if it the company is a manufacturing
50.30company or a manufacturing-related service company that employs 100 250 or fewer
50.31full-time equivalent employees.

50.32    Sec. 29. Minnesota Statutes 2008, section 116O.115, subdivision 4, is amended to read:
51.1    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish
51.2procedures for determining which applicants for assistance under the small business
51.3growth acceleration program will receive program funding. Funding shall be awarded
51.4only to accelerate a qualified company's adoption of needed technology or business
51.5improvements when the corporation concludes that it is unlikely the improvements could
51.6be accomplished in any other way.
51.7    (b) The maximum amount of funds awarded to a qualified company under the small
51.8business growth acceleration program for a particular project must not exceed 50 75
51.9percent of the total cost of a project and must not under any circumstances exceed $25,000
51.10during a calendar year. The corporation shall not award to a qualified company small
51.11business growth acceleration program funds in excess of $50,000 per year.
51.12    (c) Any funds awarded to a qualified company under the small business growth
51.13acceleration program must be used for business services and products that will enhance the
51.14operation of the company. These business services and products must come either directly
51.15from the corporation or from a network of expert providers identified and approved by
51.16the corporation. No company receiving small business growth acceleration program
51.17funds may use the funds for refinancing, overhead costs, new construction, renovation,
51.18equipment, or computer hardware.
51.19    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
51.20documented according to requirements of the corporation.
51.21(e) Receipt of funds from an award under this section is contingent upon a
51.22contribution of funds by the qualified company to the project, as follows:
51.23(1) a company with under 50 employees must contribute one dollar for every three
51.24dollars of program assistance awarded;
51.25(2) a company with 50 to 100 employees must contribute one dollar for every one
51.26dollar of program assistance awarded; and
51.27(3) a company with 101 to 250 employees must contribute three dollars for every
51.28one dollar of program assistance awarded.

51.29    Sec. 30. Minnesota Statutes 2008, section 123A.08, subdivision 1, is amended to read:
51.30    Subdivision 1. Outside sources for resources and services. A center may accept:
51.31(1) resources and services from postsecondary institutions serving center pupils;
51.32(2) resources from Job Training Partnership Act Workforce Investment Act of 1998,
51.33Public Law 105-220 programs, including funding for jobs skills training for various
51.34groups and the percentage reserved for education;
51.35(3) resources from the Department of Human Services and county welfare funding;
52.1(4) resources from a local education and employment transitions partnership; or
52.2(5) private resources, foundation grants, gifts, corporate contributions, and other
52.3grants.

52.4    Sec. 31. Minnesota Statutes 2008, section 124D.49, subdivision 3, is amended to read:
52.5    Subd. 3. Local education and employment transitions systems. A local education
52.6and employment transitions partnership must assess the needs of employers, employees,
52.7and learners, and develop a plan for implementing and achieving the objectives of a local
52.8or regional education and employment transitions system. The plan must provide for a
52.9comprehensive local system for assisting learners and workers in making the transition
52.10from school to work or for retraining in a new vocational area. The objectives of a local
52.11education and employment transitions system include:
52.12(1) increasing the effectiveness of the educational programs and curriculum of
52.13elementary, secondary, and postsecondary schools and the work site in preparing students
52.14in the skills and knowledge needed to be successful in the workplace;
52.15(2) implementing learner outcomes for students in grades kindergarten through 12
52.16designed to introduce the world of work and to explore career opportunities, including
52.17nontraditional career opportunities;
52.18(3) eliminating barriers to providing effective integrated applied learning,
52.19service-learning, or work-based curriculum;
52.20(4) increasing opportunities to apply academic knowledge and skills, including
52.21skills needed in the workplace, in local settings which include the school, school-based
52.22enterprises, postsecondary institutions, the workplace, and the community;
52.23(5) increasing applied instruction in the attitudes and skills essential for success in
52.24the workplace, including cooperative working, leadership, problem-solving, and respect
52.25for diversity;
52.26(6) providing staff training for vocational guidance counselors, teachers, and other
52.27appropriate staff in the importance of preparing learners for the transition to work, and in
52.28methods of providing instruction that incorporate applied learning, work-based learning,
52.29and service-learning experiences;
52.30(7) identifying and enlisting local and regional employers who can effectively
52.31provide work-based or service-learning opportunities, including, but not limited to,
52.32apprenticeships, internships, and mentorships;
52.33(8) recruiting community and workplace mentors including peers, parents, employers
52.34and employed individuals from the community, and employers of high school students;
53.1(9) identifying current and emerging educational, training, and employment needs of
53.2the area or region, especially within industries with potential for job growth;
53.3(10) improving the coordination and effectiveness of local vocational and job
53.4training programs, including vocational education, adult basic education, tech prep,
53.5apprenticeship, service-learning, youth entrepreneur, youth training and employment
53.6programs administered by the commissioner of employment and economic development,
53.7and local job training programs under the Job Training Partnership Act, United States
53.8Code, title 29, section 1501, et seq. Workforce Investment Act of 1998, Public Law
53.9105-220;
53.10(11) identifying and applying for federal, state, local, and private sources of funding
53.11for vocational or applied learning programs;
53.12(12) providing students with current information and counseling about career
53.13opportunities, potential employment, educational opportunities in postsecondary
53.14institutions, workplaces, and the community, and the skills and knowledge necessary to
53.15succeed;
53.16(13) providing educational technology, including interactive television networks
53.17and other distance learning methods, to ensure access to a broad variety of work-based
53.18learning opportunities;
53.19(14) including students with disabilities in a district's vocational or applied learning
53.20program and ways to serve at-risk learners through collaboration with area learning
53.21centers under sections 123A.05 to 123A.09, or other alternative programs; and
53.22(15) providing a warranty to employers, postsecondary education programs, and
53.23other postsecondary training programs, that learners successfully completing a high school
53.24work-based or applied learning program will be able to apply the knowledge and work
53.25skills included in the program outcomes or graduation requirements. The warranty shall
53.26require education and training programs to continue to work with those learners that need
53.27additional skill development until they can demonstrate achievement of the program
53.28outcomes or graduation requirements.

53.29    Sec. 32. Minnesota Statutes 2008, section 160.276, subdivision 8, is amended to read:
53.30    Subd. 8. Revenue. The agreement may provide that the vendor pay a portion of
53.31the gross revenues derived from advertising. These revenues must be paid to the state for
53.32deposit in the safety rest area account established in section 160.2745. The commissioner
53.33of transportation and director of the Office of Explore Minnesota Tourism may enter into
53.34an interagency agreement to define the distribution of the revenues generated in this
53.35subdivision and subdivisions 2a and 3a.

54.1    Sec. 33. Minnesota Statutes 2008, section 241.27, subdivision 1, is amended to read:
54.2    Subdivision 1. Establishment of Minnesota correctional industries; MINNCOR
54.3industries. For the purpose of providing adequate, regular and suitable employment,
54.4educational training, and to aid the inmates of state correctional facilities, the
54.5commissioner of corrections may establish, equip, maintain and operate at any correctional
54.6facility under the commissioner's control such industrial and commercial activities as may
54.7be deemed necessary and suitable to the profitable employment, educational training and
54.8development of proper work habits of the inmates of state correctional facilities. The
54.9industrial and commercial activities authorized by this section are designated MINNCOR
54.10industries and shall be for the primary purpose of sustaining and ensuring MINNCOR
54.11industries' self-sufficiency, providing educational training, meaningful employment
54.12and the teaching of proper work habits to the inmates of correctional facilities under
54.13the control of the commissioner of corrections, and not solely as competitive business
54.14ventures. The net profits from these activities shall be used for the benefit of the inmates
54.15as it relates to education, self-sufficiency skills, and transition services and not to fund
54.16non-inmate-related activities or mandates. Prior to the establishment of any industrial and
54.17commercial activity, the commissioner of corrections may consult with representatives
54.18of business, industry, organized labor, the state Department of Education, the state
54.19Apprenticeship Council, the state Department of Labor and Industry, the Department of
54.20Employment Security and Economic Development, the Department of Administration,
54.21and such other persons and bodies as the commissioner may feel are qualified to determine
54.22the quantity and nature of the goods, wares, merchandise and services to be made or
54.23provided, and the types of processes to be used in their manufacture, processing, repair,
54.24and production consistent with the greatest opportunity for the reform and educational
54.25training of the inmates, and with the best interests of the state, business, industry and labor.
54.26    The commissioner of corrections shall, at all times in the conduct of any industrial
54.27or commercial activity authorized by this section, utilize inmate labor to the greatest
54.28extent feasible, provided, however, that the commissioner may employ all administrative,
54.29supervisory and other skilled workers necessary to the proper instruction of the inmates
54.30and the profitable and efficient operation of the industrial and commercial activities
54.31authorized by this section.
54.32    Additionally, the commissioner of corrections may authorize the director of any
54.33correctional facility under the commissioner's control to accept work projects from outside
54.34sources for processing, fabrication or repair, provided that preference shall be given to the
54.35performance of such work projects for state departments and agencies.

55.1    Sec. 34. Minnesota Statutes 2008, section 248.061, subdivision 3, is amended to read:
55.2    Subd. 3. Eligible individual. "Eligible individual" means an individual who is
55.3eligible for library loan services through the Library of Congress and the State Library for
55.4the Blind and Physically Handicapped Minnesota Braille and Talking Book Library under
55.5Code of Federal Regulations, title 36, section 701.10, subsection (b).

55.6    Sec. 35. Minnesota Statutes 2008, section 248.07, subdivision 7, is amended to read:
55.7    Subd. 7. Blind, vending stands and machines on governmental property;
55.8liability limited. (a) Notwithstanding any other law, for the rehabilitation of blind persons
55.9the commissioner shall have exclusive authority to establish and to operate vending
55.10stands and vending machines in all buildings and properties owned or rented exclusively
55.11by the Minnesota State Colleges and Universities at a state university, a community
55.12college, a consolidated community technical college, or a technical college served by
55.13the commissioner before January 1, 1996, or by any department or agency of the state
55.14of Minnesota except the Department of Natural Resources properties operated directly
55.15by the Division of State Parks and not subject to private leasing. The merchandise to be
55.16dispensed by such Vending stands and machines authorized under this subdivision may
55.17include dispense nonalcoholic beverages, food, candies, tobacco, souvenirs, notions and
55.18related items. Such vending stands and vending machines herein authorized shall and
55.19must be operated on the same basis as other vending stands for the blind established and
55.20supervised by the commissioner under federal law. The commissioner shall waive this
55.21authority to displace any present private individual concessionaire in any state-owned or
55.22rented building or property who is operating under a contract with a specific renewal or
55.23termination date, until the renewal or termination date. With the consent of the governing
55.24body of a governmental subdivision of the state, the commissioner may establish and
55.25supervise vending stands and vending machines for the blind in any building or property
55.26exclusively owned or rented by the governmental subdivision.
55.27(b) The Department of Employment and Economic Development is not liable
55.28under chapter 176 for any injury sustained by a blind vendor's employee or agent. The
55.29Department of Employment and Economic Development, its officers, and its agents are
55.30not liable for the acts or omissions of a blind vendor or of a blind vendor's employee or
55.31agent that may result in the blind vendor's liability to third parties. The Department of
55.32Employment and Economic Development, its officers, and its agents are not liable for
55.33negligence based on any theory of liability for claims arising from the relationship created
55.34under this subdivision with the blind vendor.

56.1    Sec. 36. Minnesota Statutes 2008, section 248.07, subdivision 8, is amended to read:
56.2    Subd. 8. Use of revolving fund, licenses for operation of vending machines
56.3stands. (a) The revolving fund created by Laws 1947, chapter 535, section 5, is continued
56.4as provided in this subdivision and shall be known as the revolving fund for vocational
56.5rehabilitation of the blind. It shall be used for the purchase of equipment and supplies
56.6for establishing and operating of vending stands by blind persons. All income, receipts,
56.7earnings, and federal grants vending machine income due to the operation thereof of
56.8vending stands operated under this subdivision shall also be paid into the fund. All interest
56.9earned on money accrued in the fund must be credited to the fund by the commissioner of
56.10finance. All equipment, supplies, and expenses for setting up these stands shall be paid
56.11for from the fund.
56.12(b) Authority is hereby given to The commissioner is authorized to use the money
56.13available in the revolving fund that originated as operational charges to individuals
56.14licensed under this subdivision for the establishment, operation, and supervision of
56.15vending stands by blind persons for the following purposes:
56.16(1) purchase, upkeep and replacement of equipment;
56.17(2) expenses incidental to the setting up of new stands and improvement of old
56.18stands;
56.19(3) reimbursement under section 15.059 to individual blind vending operators
56.20for reasonable expenses incurred in attending supervisory meetings as called by the
56.21commissioner and other expenditures for management services consistent with federal
56.22law; and
56.23(4) purchase of fringe benefits for blind vending operators and their employees such
56.24as group health insurance, retirement program, vacation or sick leave assistance provided
56.25that the purchase of any fringe benefit is approved by a majority vote of blind vending
56.26operators licensed pursuant to this subdivision after the commissioner provides to each
56.27blind vending operator information on all matters relevant to the fringe benefits. "Majority
56.28vote" means a majority of blind vending operators voting. Fringe benefits shall be paid
56.29only from assessments of operators for specific benefits, gifts to the fund for fringe benefit
56.30purposes, and vending income which is not assignable to an individual stand.
56.31(c) Money originally deposited as merchandise and supplies repayments by
56.32individuals licensed under this subdivision may be expended for initial and replacement
56.33stocks of supplies and merchandise. Money originally deposited from vending income on
56.34federal property must be spent consistent with federal law.
56.35(d) All other deposits may be used for the purchase of general liability insurance or
56.36any other expense related to the operation and supervision of vending stands.
57.1(e) The commissioner shall issue each license for the operation of a vending stand
57.2or vending machine for an indefinite period but may terminate any license in the manner
57.3provided. In granting licenses for new or vacated stands preference on the basis of
57.4seniority of experience in operating stands under the control of the commissioner shall
57.5be given to capable operators who are deemed competent to handle the enterprise under
57.6consideration. Application of this preference shall not prohibit the commissioner from
57.7selecting an operator from the community in which the stand is located.

57.8    Sec. 37. Minnesota Statutes 2008, section 256J.626, subdivision 4, is amended to read:
57.9    Subd. 4. County and tribal biennial service agreements. (a) Effective January 1,
57.102004, and each two-year period thereafter, each county and tribe must have in place an
57.11approved biennial service agreement related to the services and programs in this chapter.
57.12In counties with a city of the first class with a population over 300,000, the county must
57.13consider a service agreement that includes a jointly developed plan for the delivery of
57.14employment services with the city. Counties may collaborate to develop multicounty,
57.15multitribal, or regional service agreements.
57.16    (b) The service agreements will be completed in a form prescribed by the
57.17commissioner. The agreement must include:
57.18    (1) a statement of the needs of the service population and strengths and resources
57.19in the community;
57.20    (2) numerical goals for participant outcomes measures to be accomplished during
57.21the biennial period. The commissioner may identify outcomes from section 256J.751,
57.22subdivision 2
, as core outcomes for all counties and tribes;
57.23    (3) strategies the county or tribe will pursue to achieve the outcome targets.
57.24Strategies must include specification of how funds under this section will be used and may
57.25include community partnerships that will be established or strengthened;
57.26    (4) strategies the county or tribe will pursue under family stabilization services; and
57.27    (5) other items prescribed by the commissioner in consultation with counties and
57.28tribes.
57.29    (c) The commissioner shall provide each county and tribe with information needed
57.30to complete an agreement, including: (1) information on MFIP cases in the county or
57.31tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome
57.32measures; and (4) promising program practices.
57.33    (d) The service agreement must be submitted to the commissioner by October 15,
57.342003, and October 15 of each second year thereafter. The county or tribe must allow
58.1a period of not less than 30 days prior to the submission of the agreement to solicit
58.2comments from the public on the contents of the agreement.
58.3    (e) The commissioner must, within 60 days of receiving each county or tribal service
58.4agreement, inform the county or tribe if the service agreement is approved. If the service
58.5agreement is not approved, the commissioner must inform the county or tribe of any
58.6revisions needed prior to approval.
58.7    (f) The service agreement in this subdivision supersedes the plan requirements
58.8of section 116L.88.

58.9    Sec. 38. Minnesota Statutes 2008, section 256J.66, subdivision 1, is amended to read:
58.10    Subdivision 1. Establishing the on-the-job training program. (a) County agencies
58.11may develop on-the-job training programs for MFIP caregivers who are participating in
58.12employment and training services. A county agency that chooses to provide on-the-job
58.13training may make payments to employers for on-the-job training costs that, during the
58.14period of the training, must not exceed 50 percent of the wages paid by the employer to
58.15the participant. The payments are deemed to be in compensation for the extraordinary
58.16costs associated with training participants under this section and in compensation for the
58.17costs associated with the lower productivity of the participants during training.
58.18(b) Provision of an on-the-job training program under the Job Training Partnership
58.19Act Workforce Investment Act of 1998, Public Law 105-220, in and of itself, does not
58.20qualify as an on-the-job training program under this section.
58.21(c) Employers must compensate participants in on-the-job training shall be
58.22compensated by the employer at the same rates, including periodic increases, as similarly
58.23situated employees or trainees and in accordance with applicable law, but in no event less
58.24than the federal or applicable state minimum wage, whichever is higher.

58.25    Sec. 39. Minnesota Statutes 2008, section 268A.06, subdivision 1, is amended to read:
58.26    Subdivision 1. Application. Any city, town, county, nonprofit corporation,
58.27regional treatment center, or any combination thereof, may apply to the commissioner for
58.28assistance in establishing or operating a community rehabilitation facility. Application for
58.29assistance shall must be on forms prescribed by the commissioner. Each applicant shall
58.30annually submit to the commissioner its plan and budget for the next fiscal year. No An
58.31applicant shall be is not eligible for a grant hereunder under this section unless its plan
58.32and budget audited financial statements of the prior fiscal year have been approved by
58.33the commissioner.

59.1    Sec. 40. Minnesota Statutes 2008, section 469.169, subdivision 3, is amended to read:
59.2    Subd. 3. Evaluation of applications. (a) The commissioner shall review and
59.3evaluate the applications submitted pursuant to subdivision 2 and shall determine whether
59.4each area is eligible for designation as an enterprise zone. In determining whether an
59.5area is eligible under section 469.168, subdivision 4, paragraph (a), if unemployment,
59.6employment, income, or other necessary data are not available for the area from the
59.7federal departments of labor or commerce or the state demographer, the commissioner
59.8may rely upon other data submitted by the municipality if the commissioner determines it
59.9is statistically reliable or accurate. The commissioner, together with the commissioner
59.10of revenue, shall prepare an estimate of the amount of state tax revenue which will be
59.11foregone for each application if the area is designated as a zone.
59.12(b) By October 1 of each year, the commissioner shall submit to the Legislative
59.13Advisory Commission a list of the areas eligible for designation as enterprise zones,
59.14along with recommendations for designation and supporting documentation. In making
59.15recommendations for designation, the commissioner shall consider and evaluate the
59.16applications pursuant to the following criteria:
59.17(1) the pervasiveness of poverty, unemployment, and general distress in the area;
59.18(2) the extent of chronic abandonment, deterioration, or reduction in value of
59.19commercial, industrial, or residential structures in the area and the extent of property
59.20tax arrearages in the area;
59.21(3) the prospects for new investment and economic development in the area with
59.22the tax reductions proposed in the application relative to the state and local tax revenue
59.23which would be foregone;
59.24(4) the competing needs of other areas of the state;
59.25(5) the municipality's proposed use of other state and federal development funds or
59.26programs to increase the probability of new investment and development occurring;
59.27(6) the extent to which the projected development in the zone will provide
59.28employment to residents of the economic hardship area, and particularly individuals who
59.29are unemployed or who are economically disadvantaged as defined in the federal Job
59.30Training Partnership Act of 1982, Volume 96, Statutes at Large, page 1322 Workforce
59.31Investment Act of 1998, Public Law 105-220;
59.32(7) the funds available pursuant to subdivision 7; and
59.33(8) other relevant factors that the commissioner specifies in the commissioner's
59.34recommendations.
60.1(c) The commissioner shall submit a separate list of the areas entitled to designation
60.2as federally designated zones and border city zones along with recommendations for the
60.3amount of funds to be allocated to each area.

60.4    Sec. 41. ECONOMIC DEVELOPMENT STRATEGY WORKING GROUP.
60.5(a) An 18-member bipartisan working group with members from all geographic
60.6areas of the state to develop an economic development strategy to guide job and business
60.7growth in Minnesota and to strengthen the state's economy is established. The working
60.8group consists of six members of the house of representatives and three members of the
60.9public appointed by the speaker of the house and six members of the senate and three
60.10members of the public appointed by the subcommittee on committees of the senate.
60.11The working group is responsible to review and analyze Minnesota's current economic
60.12development strategy and make recommendations on improvements according to this
60.13section. The Legislative Coordinating Commission under Minnesota Statutes, section
60.143.303, must provide staff support for the working group.
60.15(b) The working group must conduct an academic and practitioner led effort to:
60.16(1) perform best practices research on economic development principles to apply
60.17to Minnesota;
60.18(2) assess Minnesota's current economic development strategies, including tax
60.19incentives and appropriation funded programs and grants to determine how well these
60.20strategies are working and how they compare to best practices;
60.21(3) develop a comprehensive strategy to move Minnesota's economy forward;
60.22(4) develop a set of benchmarks to measure Minnesota's investments in economic
60.23development strategies; and
60.24(5) recommend the best structure to govern and lead Minnesota's economic
60.25development strategy.
60.26(c) Appointments to the working group shall be made by June 1, 2009, and the
60.27first meeting shall be convened no later than July 1, 2009. The task force shall elect
60.28a chair from among its members at the first meeting. The working group may contract
60.29for research studies and assistance necessary to fulfill its responsibilities. The working
60.30group must report to the committees of the legislature with responsibility for economic
60.31development by February 15, 2010.

60.32    Sec. 42. APPROPRIATION; GREEN ENTERPRISE ASSISTANCE.
60.33The remaining balance of the fiscal year 2009 special revenue fund appropriation for
60.34the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3, subdivision
61.14, is transferred and appropriated to the commissioner of employment and economic
61.2development for the purposes of green enterprise assistance under Minnesota Statutes,
61.3section 116J.438. This appropriation is available until spent.

61.4    Sec. 43. REVISOR'S INSTRUCTION.
61.5The revisor of statutes shall renumber Minnesota Statutes, section 116J.58,
61.6subdivision 2, as Minnesota Statutes, section 116J.035, subdivision 1a, and shall revise
61.7statutory cross-references consistent with that renumbering.

61.8    Sec. 44. REPEALER.
61.9Minnesota Statutes 2008, sections 116J.402; 116J.413; 116J.431, subdivision 5;
61.10116J.58, subdivision 1; 116J.59; 116J.61; 116J.656; 116L.16; 116L.88; and 116U.65, are
61.11repealed.
61.12EFFECTIVE DATE.This section is effective the day following final enactment.

61.13ARTICLE 3
61.14UNEMPLOYMENT INSURANCE POLICY

61.15    Section 1. Minnesota Statutes 2008, section 268.052, subdivision 2, is amended to read:
61.16    Subd. 2. Election by state or political subdivision to be a taxpaying employer.
61.17    (a) The state or political subdivision may elect to be a taxpaying employer for any
61.18calendar year if a notice of election is filed within 30 calendar days following January 1 of
61.19that calendar year. Upon election, the state or political subdivision must be assigned the
61.20new employer tax rate under section 268.051, subdivision 5, for the calendar year of the
61.21election and unless or until it qualifies for an experience rating under section 268.051,
61.22subdivision 3
.
61.23    (b) An election is for a minimum period of two calendar years following the effective
61.24date of the election and continue unless a notice terminating the election is filed not later
61.25than 30 calendar days before the beginning of the calendar year. The termination is
61.26effective at the beginning of the next calendar year. Upon election, the commissioner shall
61.27establish a reimbursable account for the state or political subdivision. A termination of
61.28election is allowed only if the state or political subdivision has, since the beginning of the
61.29experience rating period under section 268.051, subdivision 3, paid taxes equal to or more
61.30than 125 percent of the unemployment benefits used in computing the experience rating. In
61.31addition, any unemployment benefits paid after the experience rating period are transferred
61.32to the new reimbursable account of the state or political subdivision. If the amount of taxes
62.1paid since the beginning of the experience rating period exceeds 125 percent of the amount
62.2of unemployment benefits paid during the experience rating period, that amount in excess
62.3is applied against any unemployment benefits paid after the experience rating period.
62.4    (c) The method of payments to the trust fund under subdivisions 3 and 4 applies to
62.5all taxes paid by or due from the state or political subdivision that elects to be taxpaying
62.6employers under this subdivision.
62.7    (d) A notice of election or a notice terminating election must be filed by electronic
62.8transmission in a format prescribed by the commissioner.

62.9    Sec. 2. Minnesota Statutes 2008, section 268.053, subdivision 1, is amended to read:
62.10    Subdivision 1. Election. (a) Any nonprofit organization that has employees in
62.11covered employment must pay taxes on a quarterly basis in accordance with section
62.12268.051 unless it elects to make reimbursements to the trust fund the amount of
62.13unemployment benefits charged to its reimbursable account under section 268.047.
62.14    The organization may elect to make reimbursements for a period of not less than
62.15two calendar years beginning with the date that the organization was determined to be an
62.16employer with covered employment by filing a notice of election not later than 30 calendar
62.17days after the date of the determination.
62.18    (b) Any nonprofit organization that makes an election will continue to be liable for
62.19reimbursements until it files a notice terminating its election not later than 30 calendar
62.20days before the beginning of the calendar year the termination is to be effective.
62.21    (c) A nonprofit organization that has been making reimbursements that files a notice
62.22of termination of election must be assigned the new employer tax rate under section
62.23268.051, subdivision 5 , for the calendar year of the termination of election and unless or
62.24until it qualifies for an experience rating under section 268.051, subdivision 3.
62.25    (d) Any nonprofit organization that has been paying taxes may elect to make
62.26reimbursements by filing no less than 30 calendar days before January 1 of any calendar
62.27year a notice of election. Upon election, the commissioner shall establish a reimbursable
62.28account for the nonprofit organization. An election is allowed only if the nonprofit
62.29organization has, since the beginning of the experience rating period under section
62.30268.051, subdivision 3, paid taxes equal to or more than 125 percent of the unemployment
62.31benefits used in computing the experience rating. In addition, any unemployment benefits
62.32paid after the experience rating period are transferred to the new reimbursable account
62.33of the nonprofit organization. If the amount of taxes paid since the beginning of the
62.34experience rating period exceeds 125 percent of the amount of unemployment benefits
62.35paid during the experience rating period, that amount in excess is applied against any
63.1unemployment benefits paid after the experience rating period. The election is not
63.2terminable by the organization for that and the next calendar year.
63.3    (e) The commissioner may for good cause extend the period that a notice of election,
63.4or a notice of termination, must be filed and may permit an election to be retroactive.
63.5    (f) A notice of election or notice terminating election must be filed by electronic
63.6transmission in a format prescribed by the commissioner.

63.7    Sec. 3. Minnesota Statutes 2008, section 268.066, is amended to read:
63.8268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.
63.9    (a) The commissioner shall must cancel as uncollectible any amounts due from
63.10an employer under this chapter or section 116L.20, that remain unpaid six years after
63.11the amounts have been first determined due, except where the delinquent amounts are
63.12secured by a notice of lien, a judgment, are in the process of garnishment, or are under a
63.13payment plan.
63.14    (b) The commissioner may cancel at any time as uncollectible any amount due, or
63.15any portion of an amount due, from an employer under this chapter or section 116L.20,
63.16that (1) are uncollectible due to death or bankruptcy, or (2) the Collection Division of the
63.17Department of Revenue under section 16D.04 was unable to collect, or (3).
63.18(c) The commissioner may cancel at any time any interest, penalties, or fees due
63.19from an employer, or any portions due, if the commissioner determines that it is not in
63.20the public interest to pursue collection of the amount due. This paragraph does not apply
63.21to unemployment insurance taxes or reimbursements due.

63.22    Sec. 4. Minnesota Statutes 2008, section 268.067, is amended to read:
63.23268.067 COMPROMISE.
63.24    (a) The commissioner may compromise in whole or in part any action, determination,
63.25or decision that affects only an employer and not an applicant, and that has occurred
63.26during the prior 24 months. This paragraph may apply applies if it is determined by a court
63.27of law, or a confession of judgment, that an applicant, while employed, wrongfully took
63.28from the employer $500 or more in money or property.
63.29    (b) The commissioner may at any time compromise any amount unemployment
63.30insurance tax or reimbursement due from an employer under this chapter or section
63.31116L.20 .
63.32    (c) Any compromise involving an amount over $2,500 $10,000 must be authorized
63.33by an attorney licensed to practice law in Minnesota who is an employee of the department
63.34designated by the commissioner for that purpose.
64.1    (d) Any compromise must be in the best interest of the state of Minnesota.

64.2    Sec. 5. Minnesota Statutes 2008, section 268.069, subdivision 2, is amended to read:
64.3    Subd. 2. Unemployment benefits paid from state funds. Unemployment benefits
64.4are paid from state funds and are not considered paid from any special insurance plan,
64.5nor as paid by an employer. An application for unemployment benefits is not considered
64.6a claim against an employer but is considered a request for unemployment benefits
64.7from the trust fund. The commissioner has the responsibility for the proper payment of
64.8unemployment benefits regardless of the level of interest or participation by an applicant or
64.9an employer in any determination or appeal. An applicant's entitlement to unemployment
64.10benefits must be determined based upon that information available without regard to any
64.11burden of proof, and any agreement between an applicant and an employer is not binding
64.12on the commissioner in determining an applicant's entitlement. There is no presumption of
64.13entitlement or nonentitlement to unemployment benefits.

64.14    Sec. 6. Minnesota Statutes 2008, section 268.07, subdivision 3b, is amended to read:
64.15    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
64.16unemployment benefits is effective the Sunday of the calendar week that the application
64.17was filed. Upon specific request of an applicant, An application for unemployment benefits
64.18may be backdated one calendar week before the Sunday of the week the application was
64.19actually filed if the applicant requests the backdating at the time the application is filed.
64.20An application may be backdated only if the applicant was unemployed throughout had
64.21no employment during the period of the backdating. If an individual attempted to file an
64.22application for unemployment benefits, but was prevented from filing an application by
64.23the department, the application is effective the Sunday of the calendar week the individual
64.24first attempted to file an application.
64.25    (b) A benefit account established under subdivision 2 is effective the date the
64.26application for unemployment benefits was effective.
64.27    (c) A benefit account, once established, may later be withdrawn only if:
64.28    (1) the applicant has not been paid any unemployment benefits on that benefit
64.29account; and
64.30(2) a new application for unemployment benefits is filed and a new benefit account is
64.31established at the time of the withdrawal; and.
64.32    (2) the applicant has not served the nonpayable waiting week under section 268.085,
64.33subdivision 1
, clause (5).
65.1    A determination or amended determination of eligibility or ineligibility issued under
65.2section 268.101, that was issued sent before the withdrawal of the benefit account, remains
65.3in effect and is not voided by the withdrawal of the benefit account. A determination of
65.4ineligibility requiring subsequent earnings to satisfy the period of ineligibility under
65.5section 268.095, subdivision 10, applies to the weekly unemployment benefit amount on
65.6the new benefit account.
65.7    (d) An application for unemployment benefits is not allowed before the Sunday
65.8following the expiration of the benefit year on a prior benefit account. Except as allowed
65.9under paragraph (b) (c), an applicant may establish only one benefit account each 52
65.10calendar weeks.

65.11    Sec. 7. Minnesota Statutes 2008, section 268.085, subdivision 3, is amended to read:
65.12    Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not
65.13eligible to receive unemployment benefits for any week with respect to which the applicant
65.14is receiving, has received, or has filed for payment, equal to or in excess of the applicant's
65.15weekly unemployment benefit amount, in the form of:
65.16    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
65.17does not apply to (i) vacation pay paid upon a permanent separation from employment, or
65.18(ii) vacation pay paid from a vacation fund administered by a union or a third party not
65.19under the control of the employer;
65.20    (2) severance pay, bonus pay, sick pay, and any other payments, except earnings
65.21under subdivision 5, and back pay under subdivision 6, paid by an employer because of,
65.22upon, or after separation from employment, but only if the payment is considered wages at
65.23the time of payment under section 268.035, subdivision 29; or
65.24    (3) pension, retirement, or annuity payments from any plan contributed to by a base
65.25period employer including the United States government, except Social Security benefits
65.26that are provided for in subdivision 4. The base period employer is considered to have
65.27contributed to the plan if the contribution is excluded from the definition of wages under
65.28section 268.035, subdivision 29, clause (1).
65.29    If the pension, retirement, or annuity payment is paid in a lump sum, an applicant is
65.30not considered to have received the lump-sum a payment if (i) the applicant immediately
65.31deposits that payment in a qualified pension plan or account, or (ii) that payment is an
65.32early distribution for which the applicant paid an early distribution penalty under the
65.33Internal Revenue Code, United States Code, title 26, section 72(t)(1).
66.1    (b) This subdivision applies to all the weeks of payment. Payments under paragraph
66.2(a), clauses (1) and (2) clause (1), are applied to the period immediately following the last
66.3day of employment. The number of weeks of payment is determined as follows:
66.4    (1) if the payments are made periodically, the total of the payments to be received is
66.5divided by the applicant's last level of regular weekly pay from the employer; or
66.6    (2) if the payment is made in a lump sum, that sum is divided by the applicant's last
66.7level of regular weekly pay from the employer.
66.8    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
66.9unemployment benefits are reduced by the amount of the payment. If the computation
66.10of reduced unemployment benefits is not a whole dollar, it is rounded down to the next
66.11lower whole dollar.
66.12EFFECTIVE DATE.This section is effective the day following final enactment
66.13and is retroactive to December 1, 2008.

66.14    Sec. 8. Minnesota Statutes 2008, section 268.085, subdivision 6, is amended to read:
66.15    Subd. 6. Receipt of back pay. (a) Back pay received by an applicant within 24
66.16months of the establishment of the benefit account with respect to any week occurring
66.17in the 104 weeks before the payment of the back pay during the benefit year must be
66.18deducted from unemployment benefits paid for that week.
66.19    If the back pay is not paid with respect to a specific period, the back pay must be
66.20applied to the period immediately following the last day of employment.
66.21    (b) If the back pay is reduced by the amount of unemployment benefits that have
66.22been paid, the amount of back pay withheld must be:
66.23    (1) paid by the employer to the trust fund within 30 calendar days and subject to the
66.24same collection procedures that apply to past due taxes;
66.25    (2) applied to unemployment benefit overpayments resulting from the payment of
66.26the back pay; and
66.27    (3) credited to the maximum amount of unemployment benefits available to the
66.28applicant in a benefit year that includes the weeks for which back pay was deducted.
66.29    (c) Unemployment benefits paid the applicant must be removed from the
66.30computation of the tax rate for taxpaying employers and removed from the reimbursable
66.31account for nonprofit and government employers that have elected to be liable for
66.32reimbursements in the calendar quarter the trust fund receives payment.
66.33    (d) Payments to the trust fund under this subdivision are considered as made by
66.34the applicant.

67.1    Sec. 9. Minnesota Statutes 2008, section 268.085, subdivision 15, is amended to read:
67.2    Subd. 15. Available for suitable employment defined. (a) "Available for suitable
67.3employment" means an applicant is ready and willing to accept suitable employment in
67.4the labor market area. The attachment to the work force must be genuine. An applicant
67.5may restrict availability to suitable employment, but there must be no other restrictions,
67.6either self-imposed or created by circumstances, temporary or permanent, that prevent
67.7accepting suitable employment.
67.8(b) To be considered "available for suitable employment," a student must be willing
67.9to quit school to accept suitable employment.
67.10(c) An applicant who is absent from the labor market area for personal reasons, other
67.11than to search for work, is not "available for suitable employment."
67.12(d) An applicant who has restrictions on the hours of the day or days of the week
67.13that the applicant can or will work, that are not normal for the applicant's usual occupation
67.14or other suitable employment, is not "available for suitable employment." An applicant
67.15must be available for daytime employment, if suitable employment is performed during
67.16the daytime, even though the applicant previously worked the night shift.
67.17(e) An applicant must have transportation throughout the labor market area to be
67.18considered "available for suitable employment."

67.19    Sec. 10. [268.088] BENEFITS PAID DURING CERTAIN VOLUNTARY
67.20UNEMPLOYMENT.
67.21(a) An applicant who elects to become temporarily unemployed in order to avoid
67.22the layoff of another employee with the applicant's employer due to lack of work is
67.23not ineligible for benefits under the leave of absence provisions of section 268.085,
67.24subdivision 13a, nor ineligible under the quit provisions of section 268.095, if:
67.25(1) the election is authorized under a collective bargaining agreement or written
67.26employer policy;
67.27(2) the employer has accepted the applicant's election;
67.28(3) the employer provides a written certification that is provided to the department
67.29that the applicant's election prevented another employee with the employer from being
67.30laid off due to lack of work; and
67.31(4) both the applicant and the employer, at the time of the election, expect the
67.32applicant's unemployment from the employer to be temporary.
67.33(b) In addition to the requirements of paragraph (a), for unemployment benefits to be
67.34payable, an applicant must meet all the other benefit eligibility requirements under this
67.35chapter, including being available for suitable employment with a different employer.

68.1    Sec. 11. Minnesota Statutes 2008, section 268.095, subdivision 1, is amended to read:
68.2    Subdivision 1. Quit. An applicant who quit employment is ineligible for all
68.3unemployment benefits according to subdivision 10 except when:
68.4    (1) the applicant quit the employment because of a good reason caused by the
68.5employer as defined in subdivision 3;
68.6    (2) the applicant quit the employment to accept other covered employment that
68.7provided substantially better terms and conditions of employment, but the applicant did
68.8not work long enough at the second employment to have sufficient subsequent earnings to
68.9satisfy the period of ineligibility that would otherwise be imposed under subdivision 10
68.10for quitting the first employment;
68.11    (3) the applicant quit the employment within 30 calendar days of beginning the
68.12employment because the employment was unsuitable for the applicant;
68.13    (4) the employment was unsuitable for the applicant and the applicant quit to enter
68.14reemployment assistance training;
68.15    (5) the employment was part time and the applicant also had full-time employment
68.16in the base period, from which full-time employment the applicant separated because of
68.17reasons for which the applicant was held not to be ineligible, and the wage credits from
68.18the full-time employment are sufficient to meet the minimum requirements to establish a
68.19benefit account under section 268.07;
68.20    (6) the applicant quit because the employer notified the applicant that the applicant
68.21was going to be laid off because of lack of work within 30 calendar days. An applicant
68.22who quit employment within 30 calendar days of a notified date of layoff because of lack
68.23of work is ineligible for unemployment benefits through the end of the week that includes
68.24the scheduled date of layoff;
68.25    (7) the applicant quit the employment because the applicant's serious illness or
68.26injury made it medically necessary that the applicant quit, provided that the applicant
68.27inform the employer of the serious illness or injury and request accommodation and no
68.28reasonable accommodation is made available.
68.29    If the applicant's serious illness is chemical dependency, this exception does not
68.30apply if the applicant was previously diagnosed as chemically dependent or had treatment
68.31for chemical dependency, and since that diagnosis or treatment has failed to make
68.32consistent efforts to control the chemical dependency.
68.33    This exception raises an issue of the applicant's being able to work available for
68.34suitable employment under section 268.085, subdivision 1, that the commissioner shall
68.35must determine;
69.1    (8) the applicant's loss of child care for the applicant's minor child caused the
69.2applicant to quit the employment, provided the applicant made reasonable effort to obtain
69.3other child care and requested time off or other accommodation from the employer and no
69.4reasonable accommodation is available.
69.5    This exception raises an issue of the applicant's availability being available for
69.6suitable employment under section 268.085, subdivision 1, that the commissioner shall
69.7must determine; or
69.8    (9) domestic abuse of the applicant or the applicant's minor child, necessitated the
69.9applicant's quitting the employment. Domestic abuse must be shown by one or more of
69.10the following:
69.11    (i) a district court order for protection or other documentation of equitable relief
69.12issued by a court;
69.13    (ii) a police record documenting the domestic abuse;
69.14    (iii) documentation that the perpetrator of the domestic abuse has been convicted
69.15of the offense of domestic abuse;
69.16    (iv) medical documentation of domestic abuse; or
69.17    (v) written statement that the applicant or the applicant's minor child is a victim
69.18of domestic abuse, provided by a social worker, member of the clergy, shelter worker,
69.19attorney at law, or other professional who has assisted the applicant in dealing with the
69.20domestic abuse.
69.21    Domestic abuse for purposes of this clause is defined under section 518B.01.

69.22    Sec. 12. Minnesota Statutes 2008, section 268.095, subdivision 2, is amended to read:
69.23    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end
69.24the employment was, at the time the employment ended, the employee's.
69.25    (b) An employee who has been notified that the employee will be discharged in the
69.26future, who chooses to end the employment while employment in any capacity is still
69.27available, is considered to have quit the employment.
69.28    (c) An employee who seeks to withdraw a previously submitted notice of quitting is
69.29considered to have quit the employment if the employer does not agree that the notice
69.30may be withdrawn.
69.31    (d) An applicant who, within five calendar days after completion of a suitable
69.32temporary job assignment from a staffing service employer, (1) fails without good cause
69.33to affirmatively request an additional job assignment, or (2) refuses without good cause
69.34an additional suitable job assignment offered, or (3) accepts employment with the client
69.35of the staffing service, is considered to have quit employment with the staffing service.
70.1Accepting employment with the client of the staffing service meets the requirements of the
70.2exception to ineligibility under subdivision 1, clause (2).
70.3    This paragraph applies only if, at the time of beginning of employment with the
70.4staffing service employer, the applicant signed and was provided a copy of a separate
70.5document written in clear and concise language that informed the applicant of this
70.6paragraph and that unemployment benefits may be affected.
70.7    For purposes of this paragraph, "good cause" is a reason that is significant and
70.8would compel an average, reasonable worker, who would otherwise want an additional
70.9temporary job assignment with the staffing service employer, (1) to fail to contact the
70.10staffing service employer, or (2) to refuse an offered assignment.
70.11    For purposes of this paragraph, a "staffing service employer" is an employer whose
70.12business involves employing individuals directly for the purpose of furnishing temporary
70.13job assignment workers to clients of the staffing service.

70.14    Sec. 13. Minnesota Statutes 2008, section 268.103, is amended by adding a subdivision
70.15to read:
70.16    Subd. 2a. Employer-agent appeals filed online. (a) If an agent files an appeal on
70.17behalf of an employer, the appeal must be filed online. The appeal must be filed through
70.18the electronic address provided on the determination being appealed. Use of another
70.19method of filing does not constitute an appeal. This paragraph does not apply to an
70.20employee filing an appeal on behalf of an employer.
70.21(b) All information requested when the appeal is filed must be supplied or the
70.22communication does not constitute an appeal.

70.23    Sec. 14. Minnesota Statutes 2008, section 268.18, subdivision 4a, is amended to read:
70.24    Subd. 4a. Court fees; collection fees. (a) If the commissioner is required to pay any
70.25court fees in an attempt to enforce collection of overpaid unemployment benefits, penalties,
70.26or interest, the commissioner may add the amount of the court fees to the total amount due.
70.27(b) If an applicant who has been determined overpaid unemployment benefits
70.28because of fraud seeks to have any portion of the debt discharged under the federal
70.29bankruptcy code, and the commissioner files an objection in bankruptcy court to the
70.30discharge, the commissioner may add the commissioner's cost of any court fees to the debt
70.31if the bankruptcy court does not discharge the debt.
70.32(c) If the Internal Revenue Service assesses the commissioner a fee for offsetting
70.33from a federal tax refund the amount of any fraud overpayment, including penalties and
70.34interest, the amount of the fee may be added to the total amount due. The offset amount
71.1must be put in the trust fund and that amount credited to the total amount due from the
71.2applicant.

71.3    Sec. 15. Minnesota Statutes 2008, section 268.186, is amended to read:
71.4268.186 RECORDS; AUDITS.
71.5    (a) Each employer must keep true and accurate records for the periods of time and
71.6containing the information the commissioner may require by rule. For the purpose of
71.7administering this chapter, the commissioner has the power to audit, examine, or cause to
71.8be supplied or copied, any books, correspondence, papers, records, or memoranda that
71.9are relevant, whether the books, correspondence, papers, records, or memoranda are the
71.10property of or in the possession of the employer or any other person at any reasonable
71.11time and as often as may be necessary.
71.12    (b) Any employer that refuses to allow an audit of its records by the department, or
71.13that fails to make all necessary records available for audit in Minnesota upon request of
71.14the commissioner, may be assessed an administrative penalty of $500. An employer that
71.15fails to provide a weekly breakdown of money earned by an applicant upon request of the
71.16commissioner, information necessary for the detection of applicant fraud under section
71.17268.18, subdivision 2, may be assessed an administrative penalty of $100. Any notice
71.18requesting a weekly breakdown must clearly state that a $100 penalty may be assessed for
71.19failure to provide the information. The penalty collected is credited to the administration
71.20account to be used by the commissioner to ensure integrity in the administration of the
71.21unemployment insurance program trust fund.
71.22    (c) The commissioner may make summaries, compilations, photographs,
71.23duplications, or reproductions of any records, or reports that the commissioner considers
71.24advisable for the preservation of the information contained therein. Any summaries,
71.25compilations, photographs, duplications, or reproductions is admissible in any proceeding
71.26under this chapter. The commissioner may duplicate records, reports, summaries,
71.27compilations, instructions, determinations, or any other written or recorded matter
71.28pertaining to the administration of this chapter.
71.29    (d) Regardless of any law to the contrary, the commissioner may provide for the
71.30destruction of any records, reports, or reproductions, or other papers that are no longer
71.31necessary for the administration of this chapter, including any required audit. In addition,
71.32the commissioner may provide for the destruction or disposition of any record, report,
71.33or other paper from which the information has been electronically captured and stored,
71.34or that has been photographed, duplicated, or reproduced.

72.1    Sec. 16. ENTREPRENEURSHIP FOR DISLOCATED WORKERS.
72.2    Subdivision 1. Authorization. Minnesota has been awarded a federal grant by the
72.3United States Department of Labor under the Project GATE (Growing America Through
72.4Entrepreneurship) program to assist certain dislocated workers in starting a business.
72.5Providing unemployment benefits while the dislocated worker is receiving services such
72.6as entrepreneurial training, business counseling, and technical assistance will assist in the
72.7success of this pilot project. In order to provide unemployment benefits, the commissioner
72.8of employment and economic development is authorized to waive the availability for
72.9suitable employment requirements of Minnesota Statutes, section 268.085, subdivision 1,
72.10as well as the earnings deductibility provisions of Minnesota Statutes, section 268.085,
72.11subdivision 5, for individuals enrolled in this pilot project.
72.12    Subd. 2. Limitations. A maximum of 500 applicants for unemployment benefits are
72.13authorized to receive a waiver.
72.14    Subd. 3. Expiration date. The authorization under subdivision 1 expires June
72.1530, 2012.

72.16    Sec. 17. EFFECTIVE DATE.
72.17Sections 1 to 6, 8 to 12, 14, and 15 are effective August 2, 2009, and apply to all
72.18department determinations and unemployment law judge decisions issued on or after that
72.19date. Section 13 is effective April 1, 2010, and applies to all department determinations
72.20and unemployment law judge decisions issued on or after that date. Section 7 is effective
72.21retroactively from December 1, 2008. Section 16 is effective the day following final
72.22enactment.

72.23ARTICLE 4
72.24UNEMPLOYMENT INSURANCE TECHNICAL CHANGES

72.25    Section 1. Minnesota Statutes 2008, section 268.031, is amended to read:
72.26268.031 STANDARD OF PROOF.
72.27    Subdivision 1. Standard of proof. All issues of fact under the Minnesota
72.28Unemployment Insurance Law are determined by a preponderance of the evidence.
72.29Preponderance of the evidence means evidence in substantiation of a fact that, when
72.30weighed against the evidence opposing the fact, is more convincing and has a greater
72.31probability of truth.
72.32    Subd. 2. Statutory application. This chapter is remedial in nature and must be
72.33applied in favor of awarding unemployment benefits. Any legal conclusion that results in
72.34an applicant being ineligible for unemployment benefits must be fully supported by the
73.1facts. In determining eligibility or ineligibility for benefits, any statutory provision that
73.2would preclude an applicant from receiving benefits must be narrowly construed.

73.3    Sec. 2. [268.034] COMPUTATIONS OF MONEY ROUNDED DOWN.
73.4Computations of money required under this chapter that do not result in a whole
73.5dollar are rounded down to the next lower whole dollar, unless specifically provided
73.6otherwise by law.

73.7    Sec. 3. Minnesota Statutes 2008, section 268.035, subdivision 2, is amended to read:
73.8    Subd. 2. Agricultural employment. "Agricultural employment" means services:
73.9(1) on a farm, in the employ of any person or family farm corporation in connection
73.10with cultivating the soil, or in connection with raising or harvesting any agricultural or
73.11horticultural commodity, including the raising, shearing, feeding, caring for, training, and
73.12management of livestock, bees, poultry, fur-bearing animals, and wildlife;
73.13(2) in the employ of the owner or tenant or other operator of a farm, in connection
73.14with the operation, management, conservation, improvement, or maintenance of the farm
73.15and its tools and equipment, or in salvaging timber or clearing land of brush and other
73.16debris left by a tornado-like storm, if the major part of the employment is performed
73.17on a farm;
73.18(3) in connection with the production or harvesting of any commodity defined as
73.19an agricultural product in United States Code, title 7, section 1626 of the Agricultural
73.20Marketing Act, or in connection with cotton ginning, or in connection with the operation
73.21or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for
73.22profit, used exclusively for supplying and storing water for farming purposes;
73.23(4) in the employ of the operator of a farm in handling, planting, drying, packing,
73.24packaging, processing, freezing, grading, storing, or delivering to storage or to market
73.25or to a carrier for transportation to market, in its unmanufactured state, any agricultural
73.26or horticultural commodity; but only if the operator produced more than one-half of
73.27the commodity with respect to which the employment is performed, or in the employ
73.28of a group of operators of farms or a cooperative organization of which the operators
73.29are members, but only if the operators produced more than one-half of the commodity
73.30with respect to which the employment is performed; however, this clause shall is not
73.31be applicable to employment performed in connection with commercial canning or
73.32commercial freezing or in connection with any agricultural or horticultural commodity
73.33after its delivery to a terminal market for distribution for consumption; or
74.1(5) on a farm operated for profit if the employment is not in the course of the
74.2employer's trade or business.
74.3For purposes of this subdivision, the term "farm" includes stock, dairy, poultry, fruit,
74.4fur-bearing animals, and truck farms, plantations, ranches, nurseries, orchards, ranges,
74.5greenhouses, or other similar structures used primarily for the raising of agricultural or
74.6horticultural commodities.

74.7    Sec. 4. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
74.8to read:
74.9    Subd. 9a. Construction; independent contractor. For purposes of this chapter,
74.10section 181.723 determines whether a worker is an independent contractor or an employee
74.11when performing public or private sector commercial or residential building construction
74.12or improvement services.

74.13    Sec. 5. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
74.14to read:
74.15    Subd. 12c. Determination. "Determination" means a document sent to an applicant
74.16or employer by mail or electronic transmission that is an initial department ruling on a
74.17specific issue. All documents that are determinations under this chapter use that term in
74.18the title of the document and are appealable to an unemployment law judge under section
74.19268.105, subdivision 1.

74.20    Sec. 6. Minnesota Statutes 2008, section 268.035, subdivision 17, is amended to read:
74.21    Subd. 17. Filing; filed. "Filing" or "filed" means the personal delivery of any
74.22document an application, appeal, or other required action to the commissioner or any of
74.23the commissioner's agents, or the depositing of the document if done by mail, deposited
74.24in the United States mail properly addressed to the department with postage prepaid, in
74.25which case the document it is considered filed on the day indicated by the cancellation
74.26mark of the United States Postal Service.
74.27    If, where allowed, an application, appeal, or other required action is made by
74.28electronic transmission, it is considered filed on the day received by the department.

74.29    Sec. 7. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
74.30to read:
75.1    Subd. 20a. Preponderance of the evidence. "Preponderance of the evidence"
75.2means evidence in substantiation of a fact that, when weighed against the evidence
75.3opposing the fact, is more convincing and has a greater probability of truth.

75.4    Sec. 8. Minnesota Statutes 2008, section 268.042, subdivision 3, is amended to read:
75.5    Subd. 3. Election to have noncovered employment considered covered
75.6employment. (a) Any employer that has employment performed for it that is noncovered
75.7employment under section 268.035, subdivision 20, may file with the commissioner, by
75.8electronic transmission in a format prescribed by the commissioner, an election that all
75.9employees in that class of employment, in one or more distinct establishments or places
75.10of business, is considered covered employment for not less than two calendar years.
75.11The commissioner has discretion on the approval of any election. Upon the approval of
75.12the commissioner, sent by mail or electronic transmission, the employment constitutes
75.13covered employment beginning the calendar quarter after the date of approval or
75.14beginning a later calendar quarter if requested by the employer. The employment ceases to
75.15be considered covered employment as of the first day of January of any calendar year only
75.16if at least 30 calendar days before the first day of January the employer has filed with the
75.17commissioner, by electronic transmission in a format prescribed by the commissioner, a
75.18notice to that effect.
75.19    (b) The commissioner must terminate any election agreement under this subdivision
75.20upon 30 calendar days' notice sent by mail or electronic transmission, if the employer is
75.21delinquent on any taxes due or reimbursements due the trust fund.

75.22    Sec. 9. Minnesota Statutes 2008, section 268.043, is amended to read:
75.23268.043 DETERMINATIONS OF COVERAGE.
75.24    (a) The commissioner, upon the commissioner's own motion or upon application
75.25of a person, shall must determine if that person is an employer or whether services
75.26performed for it constitute employment and covered employment, or whether the any
75.27compensation for services constitutes wages, and notify the person of the determination.
75.28The determination is final unless the person, files an appeal within 20 calendar days
75.29after sending of the determination the commissioner sends the determination by mail
75.30or electronic transmission, files an appeal. Proceedings on the appeal are conducted in
75.31accordance with section 268.105.
75.32    (b) No person may be initially determined an employer, or that services performed
75.33for it were in employment or covered employment, for periods more than four years
76.1before the year in which the determination is made, unless the commissioner finds that
76.2there was fraudulent action to avoid liability under this chapter.

76.3    Sec. 10. Minnesota Statutes 2008, section 268.044, subdivision 2, is amended to read:
76.4    Subd. 2. Failure to timely file report; late fees. (a) Any employer that fails to
76.5submit the quarterly wage detail report when due must pay a late fee of $10 per employee,
76.6computed based upon the highest of:
76.7    (1) the number of employees reported on the last wage detail report submitted;
76.8    (2) the number of employees reported in the corresponding quarter of the prior
76.9calendar year; or
76.10    (3) if no wage detail report has ever been submitted, the number of employees
76.11listed at the time of employer registration.
76.12    The late fee is waived canceled if the wage detail report is received within 30
76.13calendar days after a demand for the report is sent to the employer by mail or electronic
76.14transmission. A late fee assessed an employer may not be waived canceled more than
76.15twice each 12 months. The amount of the late fee assessed may not be less than $250.
76.16    (b) If the wage detail report is not received in a manner and format prescribed by the
76.17commissioner within 30 calendar days after demand is sent under paragraph (a), the late
76.18fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the
76.19increased late fee will be sent to the employer by mail or electronic transmission.
76.20    (c) Late fees due under this subdivision may be compromised canceled, in whole or
76.21in part, under section 268.067 268.066 where good cause for late submission is found by
76.22the commissioner.

76.23    Sec. 11. Minnesota Statutes 2008, section 268.047, subdivision 1, is amended to read:
76.24    Subdivision 1. General rule. Unemployment benefits paid to an applicant,
76.25including extended and shared work benefits, will be used in computing the future
76.26tax rate of a taxpaying base period employer or charged to the reimbursable account
76.27of a base period nonprofit or government employer that has elected to be liable for
76.28reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment
76.29benefits used in computing the future tax rate of taxpaying employers or charged to the
76.30reimbursable account of a nonprofit or government employer that has elected to be liable
76.31for reimbursements is the same percentage of the total amount of unemployment benefits
76.32paid as the percentage of wage credits from the employer is of the total amount of wage
76.33credits from all the applicant's base period employers.
77.1    In making computations under this subdivision, the amount of wage credits, if not a
77.2whole dollar, must be computed to the nearest whole dollar.

77.3    Sec. 12. Minnesota Statutes 2008, section 268.047, subdivision 2, is amended to read:
77.4    Subd. 2. Exceptions for all employers. Unemployment benefits paid will not be
77.5used in computing the future tax rate of a taxpaying base period employer or charged to
77.6the reimbursable account of a base period nonprofit or government employer that has
77.7elected to be liable for reimbursements when:
77.8    (1) the applicant was discharged from the employment because of aggravated
77.9employment misconduct as determined under section 268.095. This exception applies
77.10only to unemployment benefits paid for periods after the applicant's discharge from
77.11employment;
77.12    (2) an applicant's discharge from that employment occurred because a law required
77.13removal of the applicant from the position the applicant held;
77.14    (3) the employer is in the tourist or recreation industry and is in active operation of
77.15business less than 15 calendar weeks each year and the applicant's wage credits from the
77.16employer are less than 600 times the applicable state or federal minimum wage;
77.17    (4) (3) the employer provided regularly scheduled part-time employment to the
77.18applicant during the applicant's base period and continues to provide the applicant with
77.19regularly scheduled part-time employment during the benefit year of at least 90 percent
77.20of the part-time employment provided in the base period, and is an involved employer
77.21because of the applicant's loss of other employment. This exception terminates effective
77.22the first week that the employer fails to meet the benefit year employment requirements.
77.23This exception applies to educational institutions without consideration of the period
77.24between academic years or terms;
77.25    (5) (4) the employer is a fire department or firefighting corporation or operator
77.26of a life-support transportation service, and continues to provide employment for the
77.27applicant as a volunteer firefighter or a volunteer ambulance service personnel during the
77.28benefit year on the same basis that employment was provided in the base period. This
77.29exception terminates effective the first week that the employer fails to meet the benefit
77.30year employment requirements;
77.31    (6) (5) the applicant's unemployment from this employer was a direct result of
77.32the condemnation of property by a governmental agency, a fire, flood, or act of nature,
77.33where 25 percent or more of the employees employed at the affected location, including
77.34the applicant, became unemployed as a result. This exception does not apply where the
78.1unemployment was a direct result of the intentional act of the employer or a person acting
78.2on behalf of the employer;
78.3    (7) (6) the unemployment benefits were paid by another state as a result of the
78.4transferring of wage credits under a combined wage arrangement provided for in section
78.5268.131 ;
78.6    (8) (7) the applicant stopped working because of a labor dispute at the applicant's
78.7primary place of employment if the employer was not a party to the labor dispute;
78.8    (9) (8) the unemployment benefits were determined overpaid unemployment benefits
78.9under section 268.18;
78.10    (10) (9) the applicant was employed as a replacement worker, for a period of six
78.11months or longer, for an employee who is in the military reserve and was called for active
78.12duty during the time the applicant worked as a replacement, and the applicant was laid off
78.13because the employee returned to employment after active duty; or
78.14    (11) (10) the trust fund was reimbursed for the unemployment benefits by the
78.15federal government.

78.16    Sec. 13. Minnesota Statutes 2008, section 268.051, subdivision 1, is amended to read:
78.17    Subdivision 1. Payments. (a) Unemployment insurance taxes and any special
78.18assessments, fees, or surcharges accrue and become payable by each employer for each
78.19calendar year on the taxable wages that the employer paid to employees in covered
78.20employment, except for:
78.21    (1) nonprofit organizations that elect to make reimbursements as provided in section
78.22268.053 ; and
78.23    (2) the state of Minnesota and political subdivisions that make reimbursements,
78.24unless they elect to pay taxes as provided in section 268.052.
78.25    Each employer must pay taxes quarterly, at the employer's assigned tax rate under
78.26subdivision 6, on the taxable wages paid to each employee. The commissioner must
78.27compute the tax due from the wage detail report required under section 268.044 and notify
78.28the employer of the tax due. The taxes and any special assessments, fees, or surcharges
78.29must be paid to the trust fund and must be received by the department on or before the last
78.30day of the month following the end of the calendar quarter.
78.31    (b) The tax amount computed, if not a whole dollar, is rounded down to the next
78.32lower whole dollar.
78.33    (c) If for any reason the wages on the wage detail report under section 268.044 are
78.34adjusted for any quarter, the commissioner must recompute the taxes due for that quarter
78.35and assess the employer for any amount due or credit the employer as appropriate.

79.1    Sec. 14. Minnesota Statutes 2008, section 268.051, subdivision 4, is amended to read:
79.2    Subd. 4. Experience rating history transfer. (a) When:
79.3    (1) a taxpaying employer acquires all of the organization, trade or business, or
79.4workforce of another taxpaying employer; and
79.5    (2) there is 25 percent or more common ownership or there is substantially common
79.6management or control between the predecessor and successor, the experience rating
79.7history of the predecessor employer is transferred to the successor employer.
79.8    (b) When:
79.9    (1) a taxpaying employer acquires a portion, but less than all, of the organization,
79.10trade or business, or workforce of another taxpaying employer; and
79.11    (2) there is 25 percent or more common ownership or there is substantially common
79.12management or control between the predecessor and successor, the successor employer
79.13acquires, as of the date of acquisition, the experience rating history attributable to the
79.14portion it acquired, and the predecessor employer retains the experience rating history
79.15attributable to the portion that it has retained. If the commissioner determines that
79.16sufficient information is not available to substantiate that a distinct severable portion
79.17was acquired and to assign the appropriate distinct severable portion of the experience
79.18rating history, the commissioner shall must assign the successor employer that percentage
79.19of the predecessor employer's experience rating history equal to that percentage of
79.20the employment positions it has obtained, and the predecessor employer retains that
79.21percentage of the experience rating history equal to the percentage of the employment
79.22positions it has retained.
79.23    (c) The term "common ownership" for purposes of this subdivision includes
79.24ownership by a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle,
79.25niece, nephew, or first cousin, by birth or by marriage.
79.26    (d) Each successor employer that is subject to paragraph (a) or (b) must notify the
79.27commissioner of the acquisition by electronic transmission, in a format prescribed by the
79.28commissioner, within 30 calendar days of the date of acquisition. Any successor employer
79.29that fails to notify the commissioner is subject to the penalties under section 268.184,
79.30subdivision 1a
, if the successor's experience rating assigned tax rate under subdivision 2
79.31or 5 was lower than the predecessor's experience rating assigned tax rate at the time of
79.32the acquisition. Payments made toward the penalties are credited to the administration
79.33account to be used to ensure integrity in the unemployment insurance program.
79.34    (e) If the successor employer under paragraphs (a) and (b) had an experience rating
79.35at the time of the acquisition, the transferred experience rating history of the predecessor
80.1is combined with the successor's experience rating history for purposes of recomputing
80.2a tax rate.
80.3    (f) If there has been a transfer of an experience rating history under paragraph (a) or
80.4(b), employment with a predecessor employer is not considered to have been terminated if
80.5similar employment is offered by the successor employer and accepted by the employee.
80.6    (g) The commissioner, upon notification of an employer, or upon the commissioner's
80.7own motion if the employer fails to provide the required notification, shall must determine
80.8if an employer is a successor within the meaning of this subdivision. The commissioner
80.9shall must, after determining the issue of succession or nonsuccession, recompute the tax
80.10rate under subdivision 6 of all employers affected. The commissioner shall must send the
80.11recomputed tax rate to all affected employers by mail or electronic transmission. Any
80.12affected employer may appeal the recomputed tax rate in accordance with the procedures
80.13in subdivision 6, paragraph (c).
80.14    (h) The "experience rating history" for purposes of this subdivision and subdivision
80.154a means the amount of unemployment benefits paid and the taxable wages that are being
80.16used and would be used in computing the current and any future experience rating.
80.17    For purposes of this chapter, an "acquisition" means anything that results in the
80.18obtaining by the successor employer, in any way or manner, of the organization, trade or
80.19business, or workforce of the predecessor employer.
80.20    A "distinct severable portion" in paragraph (b) means a location or unit separately
80.21identifiable within the employer's wage detail report under section 268.044.
80.22    (i) Regardless of the ownership, management, or control requirements of paragraph
80.23(a), if there is an acquisition or merger of a publicly held corporation by or with another
80.24publicly held corporation the experience rating histories of the corporations are combined
80.25as of the date of acquisition or merger for the purpose of recomputing a tax rate.

80.26    Sec. 15. Minnesota Statutes 2008, section 268.057, subdivision 4, is amended to read:
80.27    Subd. 4. Costs. (a) Any person employer, and any applicant subject to section
80.28268.18, subdivision 2, that fails to pay any amount when due under this chapter is liable
80.29for any filing fees, recording fees, sheriff fees, costs incurred by referral to any public
80.30or private collection agency, or litigation costs, including attorney fees, incurred in the
80.31collection of the amounts due.
80.32    (b) If any tendered payment of any amount due is not honored when presented to
80.33a financial institution for payment, any costs assessed the department by the financial
80.34institution and a fee of $25 must be assessed to the person.
81.1    (c) Costs and fees collected under this subdivision are credited to the administration
81.2account to be used by the commissioner to ensure integrity in the administration of the
81.3unemployment insurance program.

81.4    Sec. 16. Minnesota Statutes 2008, section 268.057, subdivision 5, is amended to read:
81.5    Subd. 5. Interest on amounts past due. If any amounts due from an employer
81.6under this chapter or section 116L.20, except late fees under section 268.044, are not
81.7received on the date due the unpaid balance bears interest at the rate of one and one-half
81.8percent per month or any part thereof. Interest assessed, if not a whole dollar amount,
81.9is rounded down to the next lower whole dollar. Interest collected is credited to the
81.10contingent account. Interest may be compromised under section 268.067.

81.11    Sec. 17. Minnesota Statutes 2008, section 268.0625, subdivision 1, is amended to read:
81.12    Subdivision 1. Notice of debt to licensing authority. The state of Minnesota or a
81.13political subdivision may not issue, transfer, or renew, and must revoke a license for the
81.14conduct of any profession, trade, or business, if the commissioner notifies the licensing
81.15authority that the licensee, applicant, or employer owes any amount due under this chapter
81.16or section 116L.20, of $500 or more. A licensing authority that has received such a notice
81.17may issue, transfer, renew, or not revoke the license only if the licensing authority has
81.18received a copy of the debt clearance certificate issued by the commissioner.

81.19    Sec. 18. Minnesota Statutes 2008, section 268.069, subdivision 1, is amended to read:
81.20    Subdivision 1. Requirements. The commissioner shall must pay unemployment
81.21benefits from the trust fund to an applicant who has met each of the following requirements:
81.22    (1) the applicant has filed an application for unemployment benefits and established
81.23a benefit account in accordance with section 268.07;
81.24    (2) the applicant has not been held ineligible for unemployment benefits under
81.25section 268.095 because of a quit or discharge;
81.26    (3) the applicant has met all of the ongoing eligibility requirements under sections
81.27section 268.085 and 268.086;
81.28    (4) the applicant does not have an outstanding overpayment of unemployment
81.29benefits, including any penalties or interest; and
81.30    (5) the applicant has not been held ineligible for unemployment benefits under
81.31section 268.182 because of a false representation or concealment of facts.

81.32    Sec. 19. Minnesota Statutes 2008, section 268.07, subdivision 1, is amended to read:
82.1    Subdivision 1. Application for unemployment benefits; determination of benefit
82.2account. (a) An application for unemployment benefits may be filed in person, by mail,
82.3or by electronic transmission as the commissioner may require. The applicant must be
82.4unemployed at the time the application is filed and must provide all requested information
82.5in the manner required. If the applicant is not unemployed at the time of the application
82.6or fails to provide all requested information, the communication is not considered an
82.7application for unemployment benefits.
82.8    (b) The commissioner shall must examine each application for unemployment
82.9benefits to determine the base period and the benefit year, and based upon all
82.10the covered employment in the base period the commissioner shall determine the
82.11weekly unemployment benefit amount available, if any, and the maximum amount of
82.12unemployment benefits available, if any. The determination is known as the, which is a
82.13document separate and distinct from a document titled a determination of eligibility or
82.14determination of ineligibility issued under section 268.101, must be titled determination of
82.15benefit account. A determination of benefit account must be sent to the applicant and all
82.16base period employers, by mail or electronic transmission.
82.17    (c) If a base period employer did not provide wage information for the applicant as
82.18provided for in section 268.044, or provided erroneous information, the commissioner
82.19may accept an applicant certification as to wage credits, based upon the applicant's records,
82.20and issue a determination of benefit account.
82.21    (d) The commissioner may, at any time within 24 months from the establishment
82.22of a benefit account, reconsider any determination of benefit account and make an
82.23amended determination if the commissioner finds that the determination was incorrect
82.24for any reason. An amended determination of benefit account must be promptly sent
82.25to the applicant and all base period employers, by mail or electronic transmission.
82.26This subdivision does not apply to documents titled determinations of eligibility or
82.27determinations of ineligibility issued under section 268.101.
82.28    (e) If an amended determination of benefit account reduces the weekly
82.29unemployment benefit amount or maximum amount of unemployment benefits available,
82.30any unemployment benefits that have been paid greater than the applicant was entitled
82.31is considered an overpayment of unemployment benefits. A determination or amended
82.32determination issued under this section that results in an overpayment of unemployment
82.33benefits must set out the amount of the overpayment and the requirement under section
82.34268.18, subdivision 1 , that the overpaid unemployment benefits must be repaid.

82.35    Sec. 20. Minnesota Statutes 2008, section 268.07, subdivision 2, is amended to read:
83.1    Subd. 2. Benefit account requirements and weekly unemployment benefit
83.2amount and maximum amount of unemployment benefits. (a) To establish a benefit
83.3account, an applicant must have:
83.4    (1) high quarter wage credits of $1,000 or more; and
83.5    (2) wage credits, in other than the high quarter, of $250 or more.
83.6    (b) If an applicant has established a benefit account, the weekly unemployment
83.7benefit amount available during the benefit year is the higher of:
83.8    (1) 50 percent of the applicant's average weekly wage during the base period, to a
83.9maximum of 66-2/3 percent of the state's average weekly wage; or
83.10    (2) 50 percent of the applicant's average weekly wage during the high quarter, to a
83.11maximum of 43 percent of the state's average weekly wage.
83.12    The applicant's average weekly wage under clause (1) is computed by dividing
83.13the total wage credits by 52. The applicant's average weekly wage under clause (2) is
83.14computed by dividing the high quarter wage credits by 13.
83.15    (c) The state's maximum weekly unemployment benefit amount and an applicant's
83.16weekly unemployment benefit amount and maximum amount of unemployment benefits
83.17available is rounded down to the next lower whole dollar. The state's maximum weekly
83.18benefit amount, computed in accordance with section 268.035, subdivision 23, applies
83.19to a benefit account established effective on or after the last Sunday in October. Once
83.20established, an applicant's weekly unemployment benefit amount is not affected by the last
83.21Sunday in October change in the state's maximum weekly unemployment benefit amount.
83.22    (d) The maximum amount of unemployment benefits available on any benefit
83.23account is the lower of:
83.24    (1) 33-1/3 percent of the applicant's total wage credits; or
83.25    (2) 26 times the applicant's weekly unemployment benefit amount.

83.26    Sec. 21. Minnesota Statutes 2008, section 268.07, subdivision 3, is amended to read:
83.27    Subd. 3. Second benefit account requirements. To establish a second benefit
83.28account following the expiration of a benefit year on a prior benefit account, an
83.29applicant must have sufficient wage credits to establish a benefit account under meet the
83.30requirements of subdivision 2 and must have performed services in covered employment
83.31after the effective date of the prior benefit account. The wages paid for that employment
83.32those services must equal not less than be at least eight times the weekly unemployment
83.33benefit amount of the prior benefit account. Part of the purpose of reason for this
83.34subdivision is to prevent an applicant from establishing more than one benefit account as a
83.35result of one loss of employment.

84.1    Sec. 22. Minnesota Statutes 2008, section 268.084, is amended to read:
84.2268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.
84.3    (a) Each applicant must be issued a personal identification number (PIN) for the
84.4purpose of filing continued requests for unemployment benefits, accessing information,
84.5and engaging in other transactions with the department.
84.6    (b) If a PIN assigned to an applicant is used in the filing of a continued request for
84.7unemployment benefits under section 268.086 268.0865 or any other type of transaction,
84.8the applicant is presumed to have been the individual using that PIN and presumed to have
84.9received any unemployment benefit payment issued. This presumption may be rebutted
84.10by a preponderance of the evidence showing that the applicant assigned the PIN was not
84.11the individual who used that PIN in the transaction.
84.12    (c) The commissioner shall must notify each applicant of this section.

84.13    Sec. 23. Minnesota Statutes 2008, section 268.085, subdivision 1, is amended to read:
84.14    Subdivision 1. Eligibility conditions. An applicant may be eligible to receive
84.15unemployment benefits for any week if:
84.16    (1) the applicant has an active benefit account and has filed a continued request for
84.17unemployment benefits for that week under section 268.086 268.0865;
84.18    (2) the week for which unemployment benefits are requested is in the applicant's
84.19benefit year;
84.20    (3) the applicant was unemployed as defined in section 268.035, subdivision 26;
84.21    (4) the applicant was able to work and was available for suitable employment, and
84.22was actively seeking suitable employment as defined in subdivision 15. The applicant's
84.23weekly unemployment benefit amount is reduced one-fifth for each day the applicant
84.24is unable to work or is unavailable for suitable employment. If the computation of the
84.25reduced unemployment benefits is not a whole dollar, it is rounded down to the next lower
84.26whole dollar. This clause does not apply to an applicant who is in reemployment assistance
84.27training, or each day the applicant is on jury duty or serving as an election judge;
84.28    (5) the applicant was actively seeking suitable employment as defined in subdivision
84.2916. This clause does not apply to an applicant who is in reemployment assistance training
84.30or who was on jury duty throughout the week;
84.31(6) the applicant has served a nonpayable waiting period of one week that the
84.32applicant is otherwise entitled to some amount of unemployment benefits. This clause
84.33does not apply if the applicant would have been entitled to federal disaster unemployment
84.34assistance because of a disaster in Minnesota, but for the applicant's establishment of a
84.35benefit account under section 268.07; and
85.1    (6) (7) the applicant has been participating in reemployment assistance services,
85.2such as job search and resume writing classes, if the applicant has been determined in
85.3need of reemployment assistance services by the commissioner, unless the applicant
85.4has good cause for failing to participate.

85.5    Sec. 24. Minnesota Statutes 2008, section 268.085, subdivision 2, is amended to read:
85.6    Subd. 2. Not eligible. An applicant is ineligible for unemployment benefits for
85.7any week:
85.8    (1) that occurs before the effective date of a benefit account;
85.9    (2) that the applicant, at the beginning of the week, has an outstanding fraud
85.10overpayment balance under section 268.18, subdivision 2, including any penalties and
85.11interest;
85.12    (3) that occurs in a period when the applicant is a student in attendance at, or on
85.13vacation from a secondary school including the period between academic years or terms;
85.14    (4) that the applicant is incarcerated or performing court ordered court-ordered
85.15community service. The applicant's weekly unemployment benefit amount is reduced
85.16by one-fifth for each day the applicant is incarcerated or performing court ordered
85.17court-ordered community service. If the computation of the reduced unemployment
85.18benefits is not a whole dollar, it is rounded down to the next lower whole dollar;
85.19    (5) that the applicant fails or refuses to provide information on an issue of
85.20ineligibility required under section 268.101;
85.21    (6) that the applicant is performing services 32 hours or more, in employment,
85.22covered employment, noncovered employment, volunteer work, or self-employment
85.23regardless of the amount of any earnings; or
85.24    (7) with respect to which the applicant is receiving, has received, or has filed an
85.25application for unemployment benefits under any federal law or the law of any other
85.26state. If the appropriate agency finally determines that the applicant is not entitled to the
85.27unemployment benefits, this clause does not apply.

85.28    Sec. 25. Minnesota Statutes 2008, section 268.085, subdivision 3a, is amended to read:
85.29    Subd. 3a. Workers' compensation and disability insurance offset. (a) An
85.30applicant is not eligible to receive unemployment benefits for any week in which the
85.31applicant is receiving or has received compensation for loss of wages equal to or in excess
85.32of the applicant's weekly unemployment benefit amount under:
85.33    (1) the workers' compensation law of this state;
85.34    (2) the workers' compensation law of any other state or similar federal law; or
86.1    (3) any insurance or trust fund paid in whole or in part by an employer.
86.2    (b) This subdivision does not apply to an applicant who has a claim pending for
86.3loss of wages under paragraph (a); however, before unemployment benefits may be paid
86.4when a claim is pending, the issue of the applicant being able to work available for
86.5suitable employment, as required under subdivision 1, clause (2) (4), is determined under
86.6section 268.101, subdivision 3 2. If the applicant later receives compensation as a result
86.7of the pending claim, the applicant is subject to the provisions of paragraph (a) and the
86.8unemployment benefits paid are subject to recoupment by the commissioner to the extent
86.9that the compensation constitutes overpaid unemployment benefits.
86.10    (c) If the amount of compensation described under paragraph (a) for any week is
86.11less than the applicant's weekly unemployment benefit amount, unemployment benefits
86.12requested for that week are reduced by the amount of that compensation payment.

86.13    Sec. 26. Minnesota Statutes 2008, section 268.085, subdivision 4, is amended to read:
86.14    Subd. 4. Social Security benefits. (a) Any applicant aged 62 or over is required
86.15to state when filing an application for unemployment benefits and when filing continued
86.16requests for unemployment benefits if the applicant is receiving, has filed for, or intends to
86.17file for, primary Social Security old age benefits for any week during the benefit year.
86.18    If the effective date of the applicant's Social Security claim for old age benefits is,
86.19or will be, after the start of the base period, there must be deducted from an applicant's
86.20weekly unemployment benefit amount Unless paragraph (b) applies, 50 percent of the
86.21weekly equivalent of the primary Social Security old age benefit the applicant has
86.22received, has filed for, or intends to file for, with respect to that week must be deducted
86.23from an applicant's weekly unemployment benefit amount.
86.24    (b) If the effective date all of the applicant's wage credits were earned while the
86.25applicant was claiming Social Security claim for old age benefits is before the start of the
86.26base period, there is no deduction from the applicant's weekly unemployment benefit
86.27amount. The purpose of this paragraph is to ensure that an applicant who is claiming
86.28Social Security benefits has demonstrated a desire and ability to work.
86.29    (b) (c) An applicant who is receiving, has received, or has filed for primary Social
86.30Security disability benefits for any week during the benefit year must be determined
86.31unable to work and unavailable for suitable employment for that week, unless:
86.32    (1) the Social Security Administration approved the collecting of primary Social
86.33Security disability benefits each month the applicant was employed during the base
86.34period; or
87.1    (2) the applicant provides a statement from an appropriate health care professional
87.2who is aware of the applicant's Social Security disability claim and the basis for that claim,
87.3certifying that the applicant is able to work and available for suitable employment.
87.4    If an applicant meets the requirements of clause (1) there is no deduction from the
87.5applicant's weekly benefit amount for any Social Security disability benefits. If only
87.6clause (2) applies, then there must be deducted from the applicant's weekly unemployment
87.7benefit amount 50 percent of the weekly equivalent of the primary Social Security
87.8disability benefits the applicant is receiving, has received, or has filed for, with respect
87.9to that week; provided, however, that if the Social Security Administration determines
87.10that an individual is not entitled to receive primary Social Security disability benefits for
87.11any week the applicant has applied for those benefits, the 50 percent deduction does not
87.12apply to that week.
87.13    (c) (d) Information from the Social Security Administration is considered conclusive,
87.14absent specific evidence showing that the information was erroneous.
87.15    (d) If the computation of the reduced unemployment benefits is not a whole dollar, it
87.16is rounded down to the next lower whole dollar.
87.17    (e) This subdivision does not apply to Social Security survivor benefits.

87.18    Sec. 27. Minnesota Statutes 2008, section 268.085, subdivision 5, is amended to read:
87.19    Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday
87.20pay, with respect to any week, from employment, covered employment, noncovered
87.21employment, self-employment, or volunteer work, equal to or in excess of the applicant's
87.22weekly unemployment benefit amount, the applicant is ineligible for unemployment
87.23benefits for that week.
87.24    (b) If the applicant has earnings, with respect to any week, that is less than
87.25the applicant's weekly unemployment benefit amount, from employment, covered
87.26employment, noncovered employment, self-employment, or volunteer work, 55 percent of
87.27the earnings are deducted from the weekly unemployment benefit amount.
87.28    The resulting unemployment benefit, if not a whole dollar, is rounded down to the
87.29next lower whole dollar.
87.30    (c) No deduction is made from an applicant's weekly unemployment benefit amount
87.31for earnings from service in the National Guard or a United States military reserve unit or
87.32from direct service as a volunteer firefighter or volunteer ambulance service personnel.
87.33This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
87.34to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
87.35for jury duty pay or for pay as an election judge.
88.1    (d) The applicant may report deductible earnings on continued requests for
88.2unemployment benefits at the next lower whole dollar amount.
88.3    (e) Deductible earnings does not include any money considered a deductible
88.4payment under subdivision 3, but includes all compensation considered wages under
88.5section 268.035, subdivision 29, and any other compensation considered earned income
88.6under state and federal law for income tax purposes.

88.7    Sec. 28. [268.0865] CONTINUED REQUEST FOR UNEMPLOYMENT
88.8BENEFITS.
88.9    Subdivision 1. Continued request for unemployment benefits defined. A
88.10continued request for unemployment benefits is a certification by an applicant, done
88.11on a weekly basis, that the applicant is unemployed and meets the ongoing eligibility
88.12requirements for unemployment benefits under section 268.085. A continued request
88.13must include information on possible issues of ineligibility in accordance with section
88.14268.101, subdivision 1, paragraph (c).
88.15    Subd. 2. Filing continued requests for unemployment benefits. (a) The
88.16commissioner must designate to each applicant one of the following methods for filing a
88.17continued request:
88.18    (1) by electronic transmission under subdivision 3; or
88.19    (2) by mail under subdivision 4.
88.20    (b) The method designated by the commissioner is the only method allowed for
88.21filing a continued request by that applicant. An applicant may ask that the other allowed
88.22method be designated and the commissioner must consider inconvenience to the applicant
88.23as well as administrative capacity in determining whether to allow an applicant to change
88.24the designated method for filing a continued request for unemployment benefits.
88.25    Subd. 3. Continued request for unemployment benefits by electronic
88.26transmission. (a) A continued request for unemployment benefits by electronic
88.27transmission must be filed to that electronic mail address, telephone number, or Internet
88.28address prescribed by the commissioner for that applicant. In order to constitute a
88.29continued request, all information asked for, including information authenticating that the
88.30applicant is sending the transmission, must be provided in the format required. If all of the
88.31information asked for is not provided, the communication does not constitute a continued
88.32request for unemployment benefits.
88.33    (b) The electronic transmission communication must be filed on the date and during
88.34the time of day designated for the applicant for filing a continued request by electronic
88.35transmission.
89.1    (c) If the electronic transmission continued request is not filed on the date and
89.2during the time of day designated, a continued request by electronic transmission must be
89.3accepted if the applicant files the continued request by electronic transmission within two
89.4calendar weeks following the week in which the date designated occurred. If the continued
89.5request by electronic transmission is not filed within two calendar weeks following the
89.6week in which the date designated occurred, the electronic continued request will not be
89.7accepted and the applicant is ineligible for unemployment benefits for the period covered
89.8by the continued request, unless the applicant shows good cause for failing to file the
89.9continued request by electronic transmission within the time period required.
89.10    Subd. 4. Continued request for unemployment benefits by mail. (a) A
89.11continued request for unemployment benefits by mail must be on a form prescribed by
89.12the commissioner. The form, in order to constitute a continued request, must be totally
89.13completed and signed by the applicant. The form must be filed on the date required for
89.14the applicant for filing a continued request by mail, in an envelope with postage prepaid,
89.15and sent to the address designated.
89.16    (b) If the mail continued request for unemployment benefits is not filed on the date
89.17designated, a continued request must be accepted if the form is filed by mail within two
89.18calendar weeks following the week in which the date designated occurred. If the form
89.19is not filed within two calendar weeks following the week in which the date designated
89.20occurred, the form will not be accepted and the applicant is ineligible for unemployment
89.21benefits for the period covered by the continued request for unemployment benefits,
89.22unless the applicant shows good cause for failing to file the form by mail within the time
89.23period required.
89.24    (c) If the applicant has been designated to file a continued request for unemployment
89.25benefits by mail, an applicant may submit the form by facsimile transmission on the day
89.26otherwise required for mailing, or within two calendar weeks following the week in which
89.27the date designated occurred. A form submitted by facsimile transmission must be sent
89.28only to the telephone number assigned for that purpose.
89.29    (d) An applicant who has been designated to file a continued request by mail may
89.30personally deliver a continued request form only to the location to which the form was
89.31otherwise designated to be mailed.
89.32    Subd. 5. Good cause defined. (a) "Good cause" for purposes of this section is a
89.33compelling substantial reason that would have prevented a reasonable person acting with
89.34due diligence from filing a continued request for unemployment benefits within the time
89.35periods required.
90.1    (b) "Good cause" does not include forgetfulness, loss of the continued request form
90.2if filing by mail, having returned to work, having an appeal pending, or inability to file a
90.3continued request for unemployment benefits by the method designated if the applicant
90.4was aware of the inability and did not make diligent effort to have the method of filing a
90.5continued request changed by the commissioner. "Good cause" does not include having
90.6previously made an attempt to file a continued request for unemployment benefits but
90.7where the communication was not considered a continued request because the applicant
90.8failed to submit all required information.

90.9    Sec. 29. Minnesota Statutes 2008, section 268.095, subdivision 10, is amended to read:
90.10    Subd. 10. Ineligibility duration. (a) Ineligibility from the payment of all
90.11unemployment benefits under subdivisions 1 and 4 is for the duration of the applicant's
90.12unemployment and until the end of the calendar week that the applicant had total earnings
90.13in subsequent covered employment of eight times the applicant's weekly unemployment
90.14benefit amount.
90.15    (b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the
90.16week that the applicant became separated from employment.
90.17    (c) In addition to paragraph (a), if the applicant was discharged from employment
90.18because of aggravated employment misconduct, wage credits from that employment are
90.19canceled and cannot be used for purposes of a benefit account under section 268.07,
90.20subdivision 2.

90.21    Sec. 30. Minnesota Statutes 2008, section 268.095, subdivision 11, is amended to read:
90.22    Subd. 11. Application. (a) This section and section 268.085, subdivision 13c,
90.23and this section apply to all covered employment, full time or part time, temporary or of
90.24limited duration, permanent or of indefinite duration, that occurred in Minnesota during
90.25the base period, the period between the end of the base period and the effective date of the
90.26benefit account, or the benefit year, except as provided for in subdivision 1, clause (5).
90.27    (b) Paragraph (a) also applies to employment covered under an unemployment
90.28insurance program of any other state or established by an act of Congress.

90.29    Sec. 31. Minnesota Statutes 2008, section 268.101, subdivision 1, is amended to read:
90.30    Subdivision 1. Notification. (a) In an application for unemployment benefits, each
90.31applicant must report the name and the reason for no longer working for the applicant's
90.32most recent employer, as well as the names of all employers and the reasons for no
90.33longer working for all employers during the six calendar months before the date of the
91.1application. If the reason reported for no longer working for any of those employers is
91.2other than a layoff because of lack of work, that raises an issue of ineligibility that the
91.3department must determine. An applicant must report any offers of employment refused
91.4during the eight calendar weeks before the date of the application for unemployment
91.5benefits and the name of the employer that made the offer. An applicant's failure to report
91.6the name of an employer, or giving an incorrect reason for no longer working for an
91.7employer, or failing to disclose an offer of employment that was refused, is a violation of
91.8section 268.182, subdivision 2.
91.9    In an application, the applicant must also provide all information necessary to
91.10determine the applicant's eligibility for unemployment benefits under this chapter. If the
91.11applicant fails or refuses to provide information necessary to determine the applicant's
91.12eligibility for unemployment benefits, the applicant is ineligible for unemployment
91.13benefits under section 268.085, subdivision 2, until the applicant provides this required
91.14information.
91.15    (b) Upon establishment of a benefit account under section 268.07, subdivision 2,
91.16the commissioner shall notify, by mail or electronic transmission, all employers the
91.17applicant was required to report on the application and all base period employers and
91.18determined successors to those employers under section 268.051, subdivision 4, in order
91.19to provide the employer an opportunity to raise, in a manner and format prescribed by the
91.20commissioner, any issue of ineligibility. An employer must be informed of the effect that
91.21failure to raise an issue of ineligibility as a result of a quit or discharge of the applicant,
91.22within ten calendar days after sending of the notice, as provided for under subdivision 2,
91.23paragraph (b), may have on the employer under section 268.047.
91.24    (c) Each applicant must report any employment, and loss of employment, and offers
91.25of employment refused, during those weeks the applicant filed continued requests for
91.26unemployment benefits under section 268.086 268.0865. Each applicant who stops filing
91.27continued requests during the benefit year and later begins filing continued requests during
91.28that same benefit year must report the name of any employer the applicant worked for
91.29during the period between the filing of continued requests and the reason the applicant
91.30stopped working for the employer. The applicant must report any offers of employment
91.31refused during the period between the filing of continued requests for unemployment
91.32benefits. Those employers from which the applicant has reported a loss of employment
91.33under this paragraph must be notified by mail or electronic transmission and provided an
91.34opportunity to raise, in a manner prescribed by the commissioner, any issue of ineligibility.
91.35An employer must be informed of the effect that failure to raise an issue of ineligibility as
92.1a result of a quit or a discharge of the applicant may have on the employer under section
92.2268.047 .
92.3    (d) The purpose for requiring the applicant to report the name of employers and the
92.4reason for no longer working for those employers, or offers of employment refused, under
92.5paragraphs (a) and (c) is for the commissioner to obtain information from an applicant
92.6raising all issues that may result in the applicant being ineligible for unemployment
92.7benefits under section 268.095, because of a quit or discharge, or the applicant being
92.8ineligible for unemployment benefits under section 268.085, subdivision 13c. If the
92.9reason given by the applicant for no longer working for an employer is other than a layoff
92.10because of lack of work, that raises an issue of ineligibility and the applicant is required,
92.11as part of the determination process under subdivision 2, paragraph (a), to state all the
92.12facts about the cause for no longer working for the employer, if known. If the applicant
92.13fails or refuses to provide any required information, the applicant is ineligible for
92.14unemployment benefits under section 268.085, subdivision 2, until the applicant provides
92.15this required information.

92.16    Sec. 32. Minnesota Statutes 2008, section 268.101, subdivision 2, is amended to read:
92.17    Subd. 2. Determination. (a) The commissioner shall must determine any issue
92.18of ineligibility raised by information required from an applicant under subdivision 1,
92.19paragraph (a) or (c), and send to the applicant and any involved employer, by mail or
92.20electronic transmission, a document titled a determination of eligibility or a determination
92.21of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result
92.22of a quit or a discharge of the applicant must state the effect on the employer under section
92.23268.047 . A determination must be made in accordance with this paragraph even if a
92.24notified employer has not raised the issue of ineligibility.
92.25    (b) The commissioner shall must determine any issue of ineligibility raised by an
92.26employer and send to the applicant and that employer, by mail or electronic transmission,
92.27a document titled a determination of eligibility or a determination of ineligibility as is
92.28appropriate. The determination on an issue of ineligibility as a result of a quit or discharge
92.29of the applicant must state the effect on the employer under section 268.047.
92.30    If a base period employer:
92.31    (1) was not the applicant's most recent employer before the application for
92.32unemployment benefits;
92.33    (2) did not employ the applicant during the six calendar months before the
92.34application for unemployment benefits; and
93.1    (3) did not raise an issue of ineligibility as a result of a quit or discharge of the
93.2applicant within ten calendar days of notification under subdivision 1, paragraph (b);
93.3then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
93.4weeks following the week that the issue of ineligibility as a result of a quit or discharge of
93.5the applicant was raised by the employer.
93.6    A communication from an employer must specifically set out why the applicant
93.7should be determined ineligible for unemployment benefits for that communication to be
93.8considered to have raised an issue of ineligibility for purposes of this section. A statement
93.9of "protest" or a similar term without more information does not constitute raising an issue
93.10of ineligibility for purposes of this section.
93.11    (c) Subject to section 268.031, an issue of ineligibility is determined based upon
93.12that information required of an applicant, any information that may be obtained from an
93.13applicant or employer, and information from any other source, without regard to any
93.14burden of proof.
93.15    (d) Regardless of the requirements of this subdivision, the commissioner is not
93.16required to send to an applicant a copy of the determination where the applicant has
93.17satisfied a period of ineligibility because of a quit or a discharge under section 268.095,
93.18subdivision 10
.
93.19    (e) The commissioner may issue a determination on an issue of ineligibility at any
93.20time within 24 months from the establishment of a benefit account based upon information
93.21from any source, even if the issue of ineligibility was not raised by the applicant or an
93.22employer. This paragraph does not prevent the imposition of a penalty on an applicant
93.23under section 268.18, subdivision 2, or 268.182.
93.24    (f) A determination of eligibility or determination of ineligibility is final unless an
93.25appeal is filed by the applicant or notified employer within 20 calendar days after sending.
93.26The determination must contain a prominent statement indicating the consequences of not
93.27appealing. Proceedings on the appeal are conducted in accordance with section 268.105.
93.28    (g) An issue of ineligibility required to be determined under this section includes
93.29any question regarding the denial or allowing of unemployment benefits under this chapter
93.30except for issues under section 268.07. An issue of ineligibility for purposes of this section
93.31includes any question of effect on an employer under section 268.047.
93.32    (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
93.33the employer will be (1) sent a copy of the determination of eligibility or a determination
93.34of ineligibility, or (2) considered an involved employer for purposes of an appeal under
93.35section 268.105, only if the employer raised the issue of ineligibility.

94.1    Sec. 33. Minnesota Statutes 2008, section 268.103, subdivision 1, is amended to read:
94.2    Subdivision 1. In commissioner's discretion. (a) The commissioner shall have
94.3the discretion to may allow an appeal to be filed by electronic transmission. If the
94.4commissioner allows an appeal to be filed by electronic transmission, that must be clearly
94.5set out on the determination or decision subject to appeal.
94.6    (b) The commissioner may restrict the manner, and format, and conditions under
94.7which an appeal by electronic transmission may be filed. Any Restrictions as to days,
94.8hours, a specific telephone number, or electronic address, or other conditions, must be
94.9clearly set out on the determination or decision subject to appeal.
94.10    (c) All information requested by the commissioner when an appeal is filed by
94.11electronic transmission must be supplied or the communication does not constitute an
94.12appeal.
94.13(d) Subject to subdivision 2, this section applies to requests for reconsideration
94.14under section 268.105, subdivision 2.

94.15    Sec. 34. Minnesota Statutes 2008, section 268.105, subdivision 1, is amended to read:
94.16    Subdivision 1. Evidentiary hearing by unemployment law judge. (a) Upon
94.17a timely appeal having been filed, the department must send, by mail or electronic
94.18transmission, a notice of appeal to all involved parties that an appeal has been filed, and
94.19that a de novo due process evidentiary hearing will be scheduled, and that the parties
94.20have certain. The notice must set out the parties' rights and responsibilities regarding the
94.21hearing. The notice must explain that the facts will be determined by the unemployment
94.22law judge based upon a preponderance of the evidence. The notice must explain in clear
94.23and simple language the meaning of the term "preponderance of the evidence." The
94.24department must set a time and place for a de novo due process evidentiary hearing and
94.25send notice to any involved applicant and any involved employer, by mail or electronic
94.26transmission, not less than ten calendar days before the date of the hearing.
94.27    (b) The evidentiary hearing is conducted by an unemployment law judge without
94.28regard to any burden of proof as an evidence gathering inquiry and not an adversarial
94.29proceeding. At the beginning of the hearing the unemployment law judge must fully
94.30explain how the hearing will be conducted, that the applicant has the right to request
94.31that the hearing be rescheduled so that documents or witnesses can be subpoenaed,
94.32that the facts will be determined based on a preponderance of the evidence, and, in
94.33clear and simple language, the meaning of the term "preponderance of the evidence."
94.34The unemployment law judge must ensure that all relevant facts are clearly and fully
94.35developed. The department may adopt rules on evidentiary hearings. The rules need
95.1not conform to common law or statutory rules of evidence and other technical rules of
95.2procedure. The department has discretion regarding the method by which the evidentiary
95.3hearing is conducted. A report of any employee of the department, except a determination,
95.4made in the regular course of the employee's duties, is competent evidence of the facts
95.5contained in it. An affidavit or written statement based on personal knowledge and signed
95.6under penalty of perjury is competent evidence of the facts contained in it; however, the
95.7veracity of statements contained within the document or the credibility of the witness
95.8making the statement may be disputed with other documents or testimony and production
95.9of such documents or testimony may be compelled by subpoena.
95.10    (c) After the conclusion of the hearing, upon the evidence obtained, the
95.11unemployment law judge must make findings of fact and decision and send those, by mail
95.12or electronic transmission, to all involved parties. When the credibility of an involved
95.13party or witness testifying in an evidentiary hearing has a significant effect on the outcome
95.14of a decision, the unemployment law judge must set out the reason for crediting or
95.15discrediting that testimony. The unemployment law judge's decision is final unless a
95.16request for reconsideration is filed under subdivision 2.
95.17    (d) Regardless of paragraph (c), if the appealing party fails to participate in the
95.18evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal
95.19by summary order. By failing to participate, the appealing party is considered to have
95.20failed to exhaust available administrative remedies unless the appealing party files a
95.21request for reconsideration under subdivision 2 and establishes good cause for failing to
95.22participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission
95.23of a written statement does not constitute participation. The applicant must participate
95.24personally and appearance solely by a representative does not constitute participation.
95.25    (e) Only employees of the department who are attorneys licensed to practice law
95.26in Minnesota may serve as the chief unemployment law judge, senior unemployment
95.27law judges who are supervisors, or unemployment law judges. The commissioner
95.28must designate a chief unemployment law judge. The chief unemployment law judge
95.29may transfer to another unemployment law judge any proceedings pending before an
95.30unemployment law judge.

95.31    Sec. 35. Minnesota Statutes 2008, section 268.105, subdivision 2, is amended to read:
95.32    Subd. 2. Request for reconsideration. (a) Any involved applicant, involved
95.33employer, or the commissioner may, within 20 calendar days of the sending of the
95.34unemployment law judge's decision under subdivision 1, file a request for reconsideration
95.35asking the unemployment law judge to reconsider that decision. Section 268.103 applies
96.1to a request for reconsideration. If a request for reconsideration is timely filed, the
96.2unemployment law judge must issue an order:
96.3    (1) modifying the findings of fact and decision issued under subdivision 1;
96.4    (2) setting aside the findings of fact and decision issued under subdivision 1 and
96.5directing that an additional evidentiary hearing be conducted under subdivision 1; or
96.6    (3) affirming the findings of fact and decision issued under subdivision 1.
96.7    (b) Upon a timely request for reconsideration having been filed, the department must
96.8send a notice, by mail or electronic transmission, to all involved parties that a request for
96.9reconsideration has been filed. The notice must inform the involved parties:
96.10    (1) of the opportunity to provide comment on the request for reconsideration, and
96.11the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits
96.12offered or received into evidence at the evidentiary hearing;
96.13    (2) that providing specific comments as to a perceived factual or legal error in the
96.14decision, or a perceived error in procedure during the evidentiary hearing, will assist the
96.15unemployment law judge in deciding the request for reconsideration;
96.16    (3) of the right to obtain any comments and submissions provided by the other
96.17involved party regarding the request for reconsideration; and
96.18    (4) of the provisions of paragraph (c) regarding additional evidence.
96.19This paragraph does not apply if paragraph (d) is applicable.
96.20    (c) In deciding a request for reconsideration, the unemployment law judge must not,
96.21except for purposes of determining whether to order an additional evidentiary hearing,
96.22consider any evidence that was not submitted at the evidentiary hearing conducted under
96.23subdivision 1.
96.24    The unemployment law judge must order an additional evidentiary hearing if an
96.25involved party shows that evidence which was not submitted at the evidentiary hearing:
96.26(1) would likely change the outcome of the decision and there was good cause for not
96.27having previously submitted that evidence; or (2) would show that the evidence that was
96.28submitted at the evidentiary hearing was likely false and that the likely false evidence had
96.29an effect on the outcome of the decision.
96.30    (d) If the involved applicant or involved employer who filed the request for
96.31reconsideration failed to participate in the evidentiary hearing conducted under subdivision
96.321, an order setting aside the findings of fact and decision and directing that an additional
96.33evidentiary hearing be conducted must be issued if the party who failed to participate had
96.34good cause for failing to do so. In the notice that a request for reconsideration has been
96.35filed, the party who failed to participate must be informed of the requirement, and provided
96.36the opportunity, to show good cause for failing to participate. If the unemployment
97.1law judge determines that good cause for failure to participate has not been shown, the
97.2unemployment law judge must state that in the order issued under paragraph (a).
97.3    Submission of a written statement at the evidentiary hearing under subdivision 1
97.4does not constitute participation for purposes of this paragraph.
97.5    All involved parties must be informed of this paragraph with the notice of appeal
97.6and notice of hearing provided for in subdivision 1.
97.7    "Good cause" for purposes of this paragraph is a reason that would have prevented a
97.8reasonable person acting with due diligence from participating at the evidentiary hearing.
97.9    (e) A request for reconsideration must be decided by the unemployment law judge
97.10who issued the findings of fact and decision under subdivision 1 unless that unemployment
97.11law judge: (1) is no longer employed by the department; (2) is on an extended or indefinite
97.12leave; (3) has been disqualified from the proceedings on the judge's own motion; or (4)
97.13has been removed from the proceedings as provided for under subdivision 1 or applicable
97.14rule by the chief unemployment law judge.
97.15    (f) The unemployment law judge must send to any involved applicant or involved
97.16employer, by mail or electronic transmission, the order issued under this subdivision. An
97.17order modifying the previously issued findings of fact and decision or an order affirming
97.18the previously issued findings of fact and decision is the final department decision on the
97.19matter and is final and binding on the involved applicant and involved employer unless
97.20judicial review is sought under subdivision 7.

97.21    Sec. 36. Minnesota Statutes 2008, section 268.105, subdivision 3a, is amended to read:
97.22    Subd. 3a. Decisions. (a) If an unemployment law judge's decision or order
97.23allows unemployment benefits to an applicant, the unemployment benefits must be paid
97.24regardless of any request for reconsideration or any appeal to the Minnesota Court of
97.25Appeals having been filed.
97.26    (b) If an unemployment law judge's decision or order modifies or reverses a
97.27determination, or prior decision of the unemployment law judge, allowing unemployment
97.28benefits to an applicant, any benefits paid in accordance with the determination, or
97.29prior decision of the unemployment law judge, is considered an overpayment of those
97.30unemployment benefits. A decision or order issued under this section that results in an
97.31overpayment of unemployment benefits must set out the amount of the overpayment and
97.32the requirement under section 268.18, subdivision 1, that the overpaid unemployment
97.33benefits must be repaid.
97.34    (c) If an unemployment law judge's order under subdivision 2 allows unemployment
97.35benefits to an applicant under section 268.095 because of a quit or discharge and the
98.1unemployment law judge's decision is reversed by the Minnesota Court of Appeals or
98.2the Supreme Court of Minnesota, the applicant cannot be held ineligible for any of
98.3the unemployment benefits paid the applicant and it is not considered an overpayment
98.4of those unemployment benefits under section 268.18, subdivision 1. The effect of the
98.5court's reversal is the application of section 268.047, subdivision 3, in computing the
98.6future tax rate of the employer.
98.7    (d) If an unemployment law judge, under subdivision 2, orders the taking of
98.8additional evidence, the unemployment law judge's prior decision must continue to be
98.9enforced until new findings of fact and decision are made by the unemployment law judge.

98.10    Sec. 37. Minnesota Statutes 2008, section 268.105, subdivision 4, is amended to read:
98.11    Subd. 4. Oaths; subpoenas. An unemployment law judge has authority to
98.12administer oaths and affirmations, take depositions, and issue subpoenas to compel the
98.13attendance of witnesses and the production of documents and other personal property
98.14considered necessary as evidence in connection with the subject matter of an evidentiary
98.15hearing.
98.16The unemployment law judge must give full consideration to a request for a
98.17subpoena and must not unreasonably deny a request for a subpoena. If a subpoena request
98.18is initially denied, the unemployment law judge must, on the unemployment law judge's
98.19own motion, reconsider that request during the evidentiary hearing and rule on whether
98.20the request was properly denied. If the request was not properly denied, the evidentiary
98.21hearing must be continued for issuance of the subpoena. The subpoenas are enforceable
98.22through the district court in Ramsey County. Witnesses subpoenaed, other than an involved
98.23applicant or involved employer or officers and employees of an involved employer, must
98.24be paid by the department the same witness fees as in a civil action in district court.

98.25    Sec. 38. Minnesota Statutes 2008, section 268.105, subdivision 5, is amended to read:
98.26    Subd. 5. Use of evidence; data privacy. (a) All testimony at any evidentiary
98.27hearing conducted under subdivision 1 must be recorded. A copy of any recorded
98.28testimony and exhibits offered or received into evidence at the hearing must, upon
98.29request, be furnished to a party at no cost during the time period for filing a request for
98.30reconsideration or while a request for reconsideration is pending.
98.31    (b) Regardless of any provision of law to the contrary, if recorded testimony and
98.32exhibits received into evidence at the evidentiary hearing are not requested during the time
98.33period for filing a request for reconsideration, or while a request for reconsideration is
98.34pending, during the time for filing any appeal under subdivision 7, or during the pendency
99.1thereof, that testimony and other evidence may later be made available only under a
99.2district court order. A subpoena is not considered a district court order.
99.3    (c) Testimony obtained under subdivision 1, may not be used or considered for any
99.4purpose, including impeachment, in any civil, administrative, or contractual proceeding,
99.5except by a local, state, or federal human rights agency with enforcement powers, unless
99.6the proceeding is initiated by the department.

99.7    Sec. 39. Minnesota Statutes 2008, section 268.115, subdivision 5, is amended to read:
99.8    Subd. 5. Maximum amount of extended unemployment benefits. The maximum
99.9amount of extended unemployment benefits available to an applicant is 50 percent of the
99.10maximum amount of regular unemployment benefits available in the benefit year, rounded
99.11down to the next lower whole dollar. If the total rate of unemployment computed under
99.12subdivision 1, clause (2)(ii), equaled or exceeded eight percent, the maximum amount
99.13of extended unemployment benefits available is 80 percent of the maximum amount of
99.14regular unemployment benefits available in the benefit year.

99.15    Sec. 40. Minnesota Statutes 2008, section 268.125, subdivision 5, is amended to read:
99.16    Subd. 5. Maximum amount of unemployment benefits. The maximum amount
99.17of additional unemployment benefits available in the applicant's benefit year is one-half
99.18of the applicant's maximum amount of regular unemployment benefits available under
99.19section 268.07, subdivision 2, rounded down to the next lower whole dollar. Extended
99.20unemployment benefits paid and unemployment benefits paid under any federal law other
99.21than regular unemployment benefits must be deducted from the maximum amount of
99.22additional unemployment benefits available.

99.23    Sec. 41. Minnesota Statutes 2008, section 268.135, subdivision 4, is amended to read:
99.24    Subd. 4. Weekly benefit amount. (a) An applicant who is eligible for shared work
99.25benefits is paid an amount equal to the regular weekly unemployment benefit amount
99.26multiplied by the nearest full percentage of reduction of the applicant's regular weekly
99.27hours of work as set in the plan. The benefit payment, if not a whole dollar must be
99.28rounded down to the next lower whole dollar.
99.29    (b) The deductible earnings provisions of section 268.085, subdivision 5, must not
99.30apply to earnings from the shared work employer of an applicant eligible for shared work
99.31benefits unless the resulting amount would be less than the regular weekly unemployment
99.32benefit amount the applicant would otherwise be eligible for without regard to shared
99.33work benefits.
100.1    (c) An applicant is not eligible for shared work benefits for any week that
100.2employment is performed for the shared work employer in excess of the reduced hours
100.3set forth in the plan.

100.4    Sec. 42. Minnesota Statutes 2008, section 268.145, subdivision 1, is amended to read:
100.5    Subdivision 1. Notification. (a) Upon filing an application for unemployment
100.6benefits, the applicant must be informed that:
100.7    (1) unemployment benefits are subject to federal and state income tax;
100.8    (2) there are requirements for filing estimated tax payments;
100.9    (3) the applicant may elect to have federal income tax withheld from unemployment
100.10benefits;
100.11    (4) if the applicant elects to have federal income tax withheld, the applicant may, in
100.12addition, elect to have Minnesota state income tax withheld; and
100.13    (5) at any time during the benefit year the applicant may change a prior election.
100.14    (b) If an applicant elects to have federal income tax withheld, the commissioner
100.15shall must deduct ten percent for federal income tax, rounded down to the next lower
100.16whole dollar. If an applicant also elects to have Minnesota state income tax withheld, the
100.17commissioner shall must make an additional five percent deduction for state income
100.18tax, rounded down to the next lower whole dollar. Any amounts deducted or offset under
100.19sections 268.155, 268.18, and 268.184 have priority over any amounts deducted under this
100.20section. Federal income tax withholding has priority over state income tax withholding.
100.21    (c) An election to have income tax withheld may not be retroactive and only applies
100.22to unemployment benefits paid after the election.

100.23    Sec. 43. Minnesota Statutes 2008, section 268.18, subdivision 1, is amended to read:
100.24    Subdivision 1. Nonfraud overpayment. (a) Any applicant who (1) because of a
100.25determination or amended determination issued under section 268.07 or 268.101, or any
100.26other section of this chapter, or (2) because of an appeal decision or order under section
100.27268.105 , has received any unemployment benefits that the applicant was held not entitled
100.28to, must promptly repay the unemployment benefits to the trust fund.
100.29    (b) If the applicant fails to repay the unemployment benefits overpaid, the
100.30commissioner may offset from any future unemployment benefits otherwise payable the
100.31amount of the overpayment. Except when the overpayment resulted because the applicant
100.32failed to report deductible earnings or deductible or benefit delaying payments, no single
100.33offset may exceed 50 percent of the amount of the payment from which the offset is made.
101.1The overpayment may also be collected by the same methods as delinquent payments
101.2from an employer allowed under state and federal law.
101.3    (c) If an applicant has been overpaid unemployment benefits under the law of
101.4another state, because of a reason other than fraud, and that state certifies that the applicant
101.5is liable under its law to repay the unemployment benefits and requests the commissioner
101.6to recover the overpayment, the commissioner may offset from future unemployment
101.7benefits otherwise payable the amount of overpayment, except that no single offset may
101.8exceed 50 percent of the amount of the payment from which the offset is made.
101.9    (d) If under paragraph (b) or (c) the reduced unemployment benefits as a result of
101.10a 50 percent offset is not a whole dollar amount, it is rounded down to the next lower
101.11whole dollar.

101.12    Sec. 44. Minnesota Statutes 2008, section 268.18, subdivision 2, is amended to read:
101.13    Subd. 2. Overpayment because of fraud. (a) Any applicant who receives
101.14unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose
101.15any material fact, or who makes a false statement or representation without a good faith
101.16belief as to the correctness of the statement or representation, has committed fraud. After
101.17the discovery of facts indicating fraud, the commissioner shall must make a determination
101.18that the applicant obtained unemployment benefits by fraud and that the applicant must
101.19promptly repay the unemployment benefits to the trust fund. In addition, the commissioner
101.20shall must assess a penalty equal to 40 percent of the amount fraudulently obtained. This
101.21penalty is in addition to penalties under section 268.182.
101.22    (b) Unless the applicant files an appeal within 20 calendar days after the sending
101.23of the determination of overpayment by fraud to the applicant by mail or electronic
101.24transmission, the determination is final. Proceedings on the appeal are conducted in
101.25accordance with section 268.105.
101.26    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest
101.27assessed, the total due may be collected by the same methods as delinquent payments
101.28from an employer allowed under state and federal law. A determination of overpayment
101.29by fraud must state the methods of collection the commissioner may use to recover the
101.30overpayment. Money received in repayment of fraudulently obtained unemployment
101.31benefits, penalties, and interest is first applied to the unemployment benefits overpaid, then
101.32to the penalty amount due, then to any interest due. 62.5 percent of the payments made
101.33toward the penalty are credited to the contingent account and 37.5 percent credited to the
101.34administration account for deterring, detecting, or collecting overpayments.
102.1    (d) If an applicant has been overpaid unemployment benefits under the law of
102.2another state because of fraud and that state certifies that the applicant is liable to repay
102.3the unemployment benefits and requests the commissioner to recover the overpayment,
102.4the commissioner may offset from future unemployment benefits otherwise payable the
102.5amount of overpayment.
102.6    (e) Unemployment benefits paid for weeks more than four years before the date of a
102.7determination of overpayment by fraud issued under this subdivision are not considered
102.8overpaid unemployment benefits.

102.9    Sec. 45. Minnesota Statutes 2008, section 268.196, subdivision 1, is amended to read:
102.10    Subdivision 1. Administration account. (a) There is created in the state treasury a
102.11special account to be known as the administration account. All money that is deposited
102.12or paid into this account is continuously available to the commissioner for expenditure to
102.13administer the Minnesota unemployment insurance program, and does not lapse at any
102.14time. The administration account consists of:
102.15    (1) all money received from the federal government to administer the Minnesota
102.16unemployment insurance program, any federal unemployment insurance program, or
102.17assistance provided to any other state to administer that state's unemployment insurance
102.18program;
102.19    (2) five percent of any money recovered on overpaid unemployment benefits as
102.20provided for in section 268.194, subdivision 1, clause (7), which must be used for
102.21deterring, detecting, and collecting overpaid unemployment benefits;
102.22    (3) any money received as compensation for services or facilities supplied to the
102.23federal government or any other state;
102.24    (4) any money credited to this account under this chapter;
102.25(5) any amounts received for losses sustained by this account or by reason of
102.26damage to equipment or supplies; and
102.27    (5) (6) any proceeds from the sale or disposition of any equipment or supplies that
102.28may no longer be necessary for the proper administration of those sections.
102.29    (b) All money in this account must be deposited, administered, and disbursed in the
102.30same manner and under the same conditions and requirements as are provided by law for
102.31the other special accounts in the state treasury. The commissioner of finance, as treasurer
102.32and custodian of this account, is liable for the faithful performance of duties in connection
102.33with this account.
103.1    (c) All money in this account must be spent for the purposes and in the amounts
103.2found necessary by the United States Secretary of Labor for the proper and efficient
103.3administration of the Minnesota unemployment insurance program.

103.4    Sec. 46. Minnesota Statutes 2008, section 268.196, subdivision 2, is amended to read:
103.5    Subd. 2. State to replace money wrongfully used. If any money received under
103.6United States Code, title 42, section 501 of the Social Security Act or the Wagner-Peyser
103.7Act, is found by the United States Secretary of Labor to have been spent for purposes
103.8other than, or in amounts in excess of, those necessary for the proper administration of the
103.9Minnesota unemployment insurance program, the commissioner may replace the money
103.10from the contingent account. If the money is not replaced from the contingent account,
103.11it is the policy of this state that the money be replaced by money appropriated for that
103.12purpose from the general funds of this state. If not replaced from the contingent account,
103.13the commissioner shall must, at the earliest opportunity, submit to the legislature a request
103.14for the appropriation of that amount.

103.15    Sec. 47. Minnesota Statutes 2008, section 268.199, is amended to read:
103.16268.199 CONTINGENT ACCOUNT.
103.17    (a) There is created in the state treasury a special account, to be known as the
103.18contingent account, that does not lapse nor revert to any other fund or account. This
103.19account consists of all money appropriated by the legislature, all money collected under
103.20this chapter that is required to be placed in this account, and any interest earned on the
103.21account. All money in this account is supplemental to all federal money available to the
103.22commissioner. Money in this account is appropriated to the commissioner and is available
103.23to the commissioner for administration of the Minnesota unemployment insurance
103.24program unless otherwise appropriated by session law.
103.25    (b) All money in this account must be deposited, administered, and disbursed in the
103.26same manner and under the same conditions and requirements as is provided by law for
103.27the other special accounts in the state treasury. On June 30 of each year, all amounts in
103.28excess of $300,000 in this account must be paid over to the trust fund.

103.29    Sec. 48. Minnesota Statutes 2008, section 268.211, is amended to read:
103.30268.211 UNEMPLOYMENT INSURANCE BENEFITS TELEPHONE
103.31SYSTEM.
103.32The commissioner must ensure that the any automated telephone system used
103.33for unemployment insurance benefits provides an option for any caller to speak to an
104.1unemployment insurance specialist. An individual who calls any of the publicized
104.2telephone numbers seeking information about applying for unemployment benefits or on
104.3the status of a claim benefit account must have the option to speak on the telephone to a
104.4specialist who can provide direct assistance or can direct the caller to the person individual
104.5or office that is able to respond to the caller's needs.

104.6    Sec. 49. UNEMPLOYMENT LAW JUDGES.
104.7It is in the public interest, as well as the interest of applicants and employees, that
104.8an unemployment law judge conducting contested unemployment insurance hearings
104.9should be an experienced attorney with a background in civil, criminal, or administrative
104.10proceedings. An unemployment law judge should have a level of skill equal to that of a
104.11workers' compensation judge. In order to recruit and retain individuals with the appropriate
104.12skills, the pay of an unemployment law judge should be commensurate with that of a
104.13workers' compensation judge, but should also take into account the less formal nature of
104.14an unemployment insurance hearing. Before October 1, 2009, the commissioner of finance
104.15is directed, in consultation with the deputy commissioner of employment and economic
104.16development and the chief unemployment law judge, to determine and implement the
104.17appropriate pay level, with no more than two pay steps, for unemployment law judges,
104.18giving consideration only to the pay level provided to workers' compensation judges, but
104.19taking into account the less formal nature of an unemployment insurance hearing.

104.20    Sec. 50. REVISOR'S INSTRUCTION.
104.21In Minnesota Statutes, chapter 268, the revisor shall change "shall" to "must," except
104.22in Minnesota Statutes, sections 268.035 and 268.103.

104.23    Sec. 51. REPEALER.
104.24Minnesota Statutes 2008, sections 268.085, subdivision 14; and 268.086,
104.25subdivisions 1, 2, 3, 5, 6, 7, 8, and 9, are repealed.

104.26    Sec. 52. EFFECTIVE DATE.
104.27Sections 1 to 48 and 50 are effective August 2, 2009, and apply to all department
104.28determinations and unemployment law judge decisions issued on or after that date.

105.1ARTICLE 5
105.2LABOR STANDARDS AND WAGES; LICENSING AND FEES

105.3    Section 1. Minnesota Statutes 2008, section 16C.28, is amended by adding a
105.4subdivision to read:
105.5    Subd. 6. Contract awards. When prevailing wage laws apply, an agency shall not
105.6be liable for costs under section 177.43, subdivision 3, if it has included language in its
105.7contracts which requires vendors and contractors to comply with prevailing wage laws
105.8and the contract also contains the following elements:
105.9(1) a description of the prevailing wage laws and a citation to relevant statutes;
105.10(2) contact details for further information from the Department of Labor and
105.11Industry; and
105.12(3) a statement of contractor and subcontractor liability for failure to adhere to
105.13prevailing wage laws.

105.14    Sec. 2. Minnesota Statutes 2008, section 177.27, subdivision 4, is amended to read:
105.15    Subd. 4. Compliance orders. The commissioner may issue an order requiring an
105.16employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
105.17181.101 , 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, 181.275, subdivision 2a, and
105.18181.79 , or with any rule promulgated under section 177.28. The commissioner shall
105.19issue an order requiring an employer to comply with sections 177.41 to 177.435 if the
105.20violation is repeated. For purposes of this subdivision only, a violation is repeated if
105.21at any time during the two years that preceded the date of violation, the commissioner
105.22issued an order to the employer for violation of sections 177.41 to 177.435 and the order
105.23is final or the commissioner and the employer have entered into a settlement agreement
105.24that required the employer to pay back wages that were required by sections 177.41 to
105.25177.435. The department shall serve the order upon the employer or the employer's
105.26authorized representative in person or by certified mail at the employer's place of business.
105.27An employer who wishes to contest the order must file written notice of objection to the
105.28order with the commissioner within 15 calendar days after being served with the order.
105.29A contested case proceeding must then be held in accordance with sections 14.57 to
105.3014.69 . If, within 15 calendar days after being served with the order, the employer fails
105.31to file a written notice of objection with the commissioner, the order becomes a final
105.32order of the commissioner.

106.1    Sec. 3. Minnesota Statutes 2008, section 177.30, is amended to read:
106.2177.30 KEEPING RECORDS; PENALTY.
106.3    (a) Every employer subject to sections 177.21 to 177.44 must make and keep a
106.4record of:
106.5    (1) the name, address, and occupation of each employee;
106.6    (2) the rate of pay, and the amount paid each pay period to each employee;
106.7    (3) the hours worked each day and each workweek by the employee;
106.8    (4) for each employer subject to sections 177.41 to 177.44, and while performing
106.9work on public works projects funded in whole or in part with state funds, the employer
106.10shall furnish under oath signed by an owner or officer of an employer to the contracting
106.11authority and the project owner every two weeks, a certified payroll report with respect
106.12to the wages and benefits paid each employee during the preceding weeks specifying for
106.13each employee: name; identifying number; prevailing wage master job classification
106.14of each employee working on the project for each hour; hours worked each day; total
106.15hours; rate of pay; gross amount earned; each deduction for taxes; total deductions; net
106.16pay for week; dollars contributed per hour for each benefit, including name and address
106.17of administrator; benefit account number; and telephone number for health and welfare,
106.18vacation or holiday, apprenticeship training, pension, and other benefit programs; and
106.19    (5) other information the commissioner finds necessary and appropriate to enforce
106.20sections 177.21 to 177.35 177.435. The records must be kept for three years in or near the
106.21premises where an employee works except each employer subject to sections 177.41 to
106.22177.44 , and while performing work on public works projects funded in whole or in part
106.23with state funds, the records must be kept for three years after the contracting authority
106.24has made final payment on the public works project.
106.25    (b) The commissioner may fine an employer up to $1,000 for each failure to
106.26maintain records as required by this section. This penalty is in addition to any penalties
106.27provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
106.28under this subdivision, the appropriateness of such penalty to the size of the employer's
106.29business and the gravity of the violation shall be considered.

106.30    Sec. 4. Minnesota Statutes 2008, section 177.31, is amended to read:
106.31177.31 POSTING OF LAW AND RULES; PENALTY.
106.32Every employer subject to sections 177.21 to 177.35 177.44 must obtain and keep
106.33a summary of those sections, approved by the department, and copies of any applicable
106.34rules adopted under those sections, or a summary of the rules. The employer must post the
106.35summaries in a conspicuous and accessible place in or about the premises in which any
107.1person covered by sections 177.21 to 177.35 177.44 is employed. The department shall
107.2furnish copies of the summaries and rules to employers without charge.
107.3The commissioner may fine an employer up to $200 for each failure to comply with
107.4this section. This penalty is in addition to any penalties provided by section 177.32,
107.5subdivision 1
.

107.6    Sec. 5. Minnesota Statutes 2008, section 177.32, is amended to read:
107.7177.32 PENALTIES.
107.8    Subdivision 1. Misdemeanors. An employer who does any of the following is
107.9guilty of a misdemeanor:
107.10(1) hinders or delays the commissioner in the performance of duties required under
107.11sections 177.21 to 177.35 177.435;
107.12(2) refuses to admit the commissioner to the place of business or employment of the
107.13employer, as required by section 177.27, subdivision 1;
107.14(3) repeatedly fails to make, keep, and preserve records as required by section
107.15177.30 ;
107.16(4) falsifies any record;
107.17(5) refuses to make any record available, or to furnish a sworn statement of the
107.18record or any other information as required by section 177.27;
107.19(6) repeatedly fails to post a summary of sections 177.21 to 177.35 177.44 or a copy
107.20or summary of the applicable rules as required by section 177.31;
107.21(7) pays or agrees to pay wages at a rate less than the rate required under sections
107.22177.21 to 177.35 177.44;
107.23(8) refuses to allow adequate time from work as required by section 177.253; or
107.24(9) otherwise violates any provision of sections 177.21 to 177.35 177.44.
107.25    Subd. 2. Fine. An employer shall be fined not less than $700 nor more than $3,000
107.26if convicted of discharging or otherwise discriminating against any employee because:
107.27(1) the employee has complained to the employer or to the department that wages
107.28have not been paid in accordance with sections 177.21 to 177.35 177.435;
107.29(2) the employee has instituted or will institute a proceeding under or related to
107.30sections 177.21 to 177.35 177.435; or
107.31(3) the employee has testified or will testify in any proceeding.

107.32    Sec. 6. Minnesota Statutes 2008, section 177.42, subdivision 6, is amended to read:
107.33    Subd. 6. Prevailing wage rate. "Prevailing wage rate" means the hourly basic rate
107.34of pay plus the contribution for health and welfare benefits, vacation benefits, pension
108.1benefits, and any other economic benefit paid to or for the largest number of workers
108.2engaged in the same class of labor within the area and for medical or hospital care,
108.3pensions on retirement or death, compensation for injuries or illness resulting from
108.4occupational activity, or insurance to provide any of the foregoing, for unemployment
108.5benefits, life insurance, disability and sickness insurance, or accident insurance, for
108.6vacation and holiday pay, for defraying the costs of apprenticeship or other similar
108.7programs, or for other bona fide fringe benefits, but only where the contractor or
108.8subcontractor is not required by other federal, state, or local law to provide any of those
108.9benefits, the amount of:
108.10(1) the rate of contribution irrevocably made by a contractor or subcontractor to a
108.11trustee or to a third person under a fund, plan, or program; and
108.12(2) the rate of costs to the contractor or subcontractor that may be reasonably
108.13anticipated in providing benefits to laborers and mechanics pursuant to an enforceable
108.14commitment to carry out a financially responsible plan or program which was
108.15communicated in writing to the laborers and mechanics affected.
108.16"Prevailing wage rate" includes, for the purposes of section 177.44, rental rates for
108.17truck hire paid to those who own and operate the truck.
108.18The prevailing wage rate may not be less than a reasonable and living wage.

108.19    Sec. 7. Minnesota Statutes 2008, section 177.42, is amended by adding a subdivision
108.20to read:
108.21    Subd. 7. Employer. "Employer" means an individual, partnership, association,
108.22corporation, business trust, or other business entity that hires a laborer, worker, or
108.23mechanic.

108.24    Sec. 8. Minnesota Statutes 2008, section 177.43, subdivision 3, is amended to read:
108.25    Subd. 3. Contract requirements. The contract must specifically state the prevailing
108.26wage rates, prevailing hours of labor, and hourly basic rates of pay. The contracting
108.27authority shall incorporate into its proposals and all contracts the applicable wage
108.28determinations for the contract along with contract language provided by the commissioner
108.29of labor and industry to notify the contractor and all subcontractors of the applicability of
108.30sections 177.41 to 177.44. Failure to incorporate the determination or provided contract
108.31language into the contracts shall make the contracting authority liable for making whole
108.32the contractor or subcontractor for any increases in the wages paid, including employment
108.33taxes and reasonable administrative costs based on the appropriate prevailing wage due to
108.34the laborers or mechanics working on the project. The contract must also provide that
109.1the contracting agency shall demand, and the contractor and subcontractor shall furnish
109.2to the contracting agency, copies of any or all payrolls not more than 14 days after the
109.3end of each pay period. The payrolls must contain all the data required by section 177.30.
109.4The contracting authority may examine all records relating to wages paid laborers or
109.5mechanics on work to which sections 177.41 to 177.44 apply.

109.6    Sec. 9. [181.986] REQUIRED EQUIPMENT AND APPAREL.
109.7    (a) Notwithstanding any other law or rule to the contrary, a public employer is
109.8prohibited from knowingly purchasing or acquiring, furnishing, or requiring an employee
109.9to purchase or acquire for wear or use while on duty, any of the following items if the item
109.10is not manufactured in the United States of America:
109.11    (1) any uniform or other item of wearing apparel over which an employee has no
109.12discretion in selecting except for selecting the proper size; or
109.13    (2) safety equipment or protective accessories.
109.14    (b) Preference must be given to purchases from manufacturers who pay an average
109.15annual income, including wages and benefits, equal to at least 150 percent of the federal
109.16poverty guideline adjusted for a family size of four. For purposes of this section, "public
109.17employer" means a county, home rule charter or statutory city, town, school district,
109.18metropolitan or regional agency, public corporation, political subdivision, special district
109.19as defined in section 6.465, subdivision 3, municipal fire department, independent
109.20nonprofit firefighting corporation, the University of Minnesota, the Minnesota State
109.21Colleges and Universities, and the state of Minnesota and its agencies.
109.22    (c) Notwithstanding paragraph (a), a public employer may purchase or acquire,
109.23furnish, or require an employee to purchase or acquire items listed in paragraph (a)
109.24manufactured outside of the United States if similar items are not manufactured or
109.25available for purchase in the United States.
109.26EFFECTIVE DATE.This section is effective January 1, 2010, or upon expiration
109.27of valid contracts for such equipment and apparel entered into by public employers prior
109.28to June 1, 2009, whichever is later.

109.29    Sec. 10. Minnesota Statutes 2008, section 270.97, is amended to read:
109.30270.97 DEPOSIT OF REVENUES.
109.31The commissioner shall deposit all revenues derived from the tax, interest, and
109.32penalties received from the county in the contaminated site cleanup and development
109.33account in the general fund and is annually appropriated to the commissioner of the
110.1Department of Employment and Economic Development, for the purposes of section
110.2116J.551.

110.3    Sec. 11. [326B.153] BUILDING PERMIT FEES.
110.4    Subdivision 1. Building permits. (a) Fees for building permits submitted as
110.5required in section 326B.106 include:
110.6(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a
110.7municipality; and
110.8(2) the surcharge required by section 326B.148.
110.9(b) The total valuation and fee schedule is:
110.10(1) $1 to $500, $29.50;
110.11(2) $501 to $2,000, $28 for the first $500 plus $3.70 for each additional $100 or
110.12fraction thereof, to and including $2,000;
110.13(3) $2,001 to $25,000, $83.50 for the first $2,000 plus $16.55 for each additional
110.14$1,000 or fraction thereof, to and including $25,000;
110.15(4) $25,001 to $50,000, $464.15 for the first $25,000 plus $12 for each additional
110.16$1,000 or fraction thereof, to and including $50,000;
110.17(5) $50,001 to $100,000, $764.15 for the first $50,000 plus $8.45 for each additional
110.18$1,000 or fraction thereof, to and including $100,000;
110.19(6) $100,001 to $500,000, $1,186.65 for the first $100,000 plus $6.75 for each
110.20additional $1,000 or fraction thereof, to and including $500,000;
110.21(7) $500,001 to $1,000,000, $3,886.65 for the first $500,000 plus $5.50 for each
110.22additional $1,000 or fraction thereof, to and including $1,000,000; and
110.23(8) $1,000,001 and up, $6,636.65 for the first $1,000,000 plus $4.50 for each
110.24additional $1,000 or fraction thereof.
110.25(c) Other inspections and fees are:
110.26(1) inspections outside of normal business hours (minimum charge two hours),
110.27$63.25 per hour;
110.28(2) reinspection fees, $63.25 per hour;
110.29(3) inspections for which no fee is specifically indicated (minimum charge one-half
110.30hour), $63.25 per hour; and
110.31(4) additional plan review required by changes, additions, or revisions to approved
110.32plans (minimum charge one-half hour), $63.25 per hour.
110.33(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than
110.34$63.25, then the greater rate shall be paid. Hourly cost includes supervision, overhead,
110.35equipment, hourly wages, and fringe benefits of the employees involved.
111.1    Subd. 2. Plan review. Fees for the review of building plans, specifications, and
111.2related documents submitted as required by section 326B.106 must be paid based on 65
111.3percent of the building permit fee required in subdivision 1.
111.4    Subd. 3. Surcharge. Surcharge fees are required for permits issued on all buildings
111.5including public buildings and state licensed facilities as required by section 326B.148.
111.6    Subd. 4. Distribution. (a) This subdivision establishes the fee distribution between
111.7the state and municipalities contracting for plan review and inspection of public buildings
111.8and state licensed facilities.
111.9(b) If plan review and inspection services are provided by the state building official,
111.10all fees for those services must be remitted to the state.
111.11(c) If plan review services are provided by the state building official and inspection
111.12services are provided by a contracting municipality:
111.13(1) the state shall charge 75 percent of the plan review fee required by the state's
111.14fee schedule in subdivision 2; and
111.15(2) the municipality shall charge 25 percent of the plan review fee required by the
111.16municipality's adopted fee schedule, for orientation to the plans, in addition to the permit
111.17and other customary fees charged by the municipality.
111.18(d) If plan review and inspection services are provided by the contracting
111.19municipality, all fees for those services must be remitted to the municipality in accordance
111.20with their adopted fee schedule.

111.21    Sec. 12. Minnesota Statutes 2008, section 326B.33, subdivision 13, is amended to read:
111.22    Subd. 13. Registration of unlicensed individuals. Unlicensed individuals
111.23performing electrical work for a contractor or employer shall register with the department
111.24in the manner prescribed by the commissioner. Experience credit for electrical work
111.25performed in Minnesota after January 1, 2008 2009, by an applicant for a license identified
111.26in this section shall not be granted where the applicant has not registered with or is not
111.27licensed by the department.

111.28    Sec. 13. Minnesota Statutes 2008, section 326B.33, subdivision 19, is amended to read:
111.29    Subd. 19. License, registration, and renewal fees; expiration. (a) Unless
111.30revoked or suspended under this chapter, all licenses issued or renewed under this section
111.31expire on the date specified in this subdivision. Master licenses expire March 1 of each
111.32odd-numbered year after issuance or renewal. Electrical contractor licenses expire March
111.331 of each even-numbered year after issuance or renewal. Technology system contractor
111.34licenses expire August 1 of each even-numbered year after issuance or renewal. All
112.1other personal licenses expire two years from the date of original issuance and every two
112.2years thereafter. Registrations of unlicensed individuals expire one year from the date of
112.3original issuance and every year thereafter.
112.4    (b) Fees for application and examination, and for the original issuance and each
112.5subsequent renewal, are:
112.6    (1) For each personal license application and examination: $35;
112.7    (2) For original issuance and each subsequent renewal of:
112.8    Class A Master or master special electrician, including master elevator constructor:
112.9$40 per year;
112.10    Class B Master: $25 per year;
112.11    Power Limited Technician: $15 per year;
112.12    Class A Journeyman, Class B Journeyman, Installer, Elevator Constructor, Lineman,
112.13or Maintenance Electrician other than master special electrician: $15 per year;
112.14    Contractor: $100 per year;
112.15    Unlicensed individual registration: $15 per year.
112.16    (c) If any new license is issued in accordance with this subdivision for less than two
112.17years, the fee for the license shall be prorated on an annual basis.
112.18    (d) A license fee may not be refunded after a license is issued or renewed. However,
112.19if the fee paid for a license was not prorated in accordance with this subdivision, the
112.20amount of the overpayment shall be refunded.
112.21    (e) Any contractor who seeks reissuance of a license after it has been revoked or
112.22suspended under this chapter shall submit a reissuance fee of $100 before the license is
112.23reinstated.
112.24    (f) The fee for the issuance of each duplicate license is $15.
112.25    (g) An individual or contractor who fails to renew a license before 30 days after the
112.26expiration or registration of the license must submit a late fee equal to one year's license
112.27fee in addition to the full renewal fee. Fees for renewed licenses or registrations are not
112.28prorated. An individual or contractor that fails to renew a license or registration by the
112.29expiration date is unlicensed until the license or registration is renewed.

112.30    Sec. 14. Minnesota Statutes 2008, section 326B.46, subdivision 4, is amended to read:
112.31    Subd. 4. Fee. (a) Each person giving bond to the state under subdivision 2 shall pay
112.32the department an annual a bond registration fee of $40 for one year or $80 for two years.
112.33(b) The commissioner shall in a manner determined by the commissioner, without
112.34the need for any rulemaking under chapter 14, phase in the bond registration from one year
113.1to two years so that the expiration of bond registration corresponds with the expiration of
113.2the license issued under section 326B.475 or 326B.49, subdivision 1.

113.3    Sec. 15. Minnesota Statutes 2008, section 326B.475, subdivision 4, is amended to read:
113.4    Subd. 4. Renewal; use period for license. (a) A restricted master plumber and
113.5restricted journeyman plumber license must be renewed annually for as long as that
113.6licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
113.7restricted journeyman plumber license within 12 months after the expiration date will
113.8result in permanent forfeiture of the restricted master plumber and restricted journeyman
113.9plumber license.
113.10(b) The commissioner shall in a manner determined by the commissioner, without
113.11the need for any rulemaking under chapter 14, phase in the renewal of restricted master
113.12plumber and restricted journeyman plumber licenses from one year to two years. By
113.13June 30, 2011, all restricted master plumber and restricted journeyman plumber licenses
113.14shall be two-year licenses.

113.15    Sec. 16. Minnesota Statutes 2008, section 326B.475, subdivision 7, is amended to read:
113.16    Subd. 7. Fee. The annual renewal fee for the restricted master plumber and
113.17restricted journeyman plumber licenses is the same fee as for a master or journeyman
113.18plumber license, respectively.

113.19    Sec. 17. Minnesota Statutes 2008, section 326B.49, subdivision 1, is amended to read:
113.20    Subdivision 1. Application. (a) Applications for plumber's license shall be made to
113.21the commissioner, with fee. Unless the applicant is entitled to a renewal, the applicant
113.22shall be licensed by the commissioner only after passing a satisfactory examination
113.23developed and administered by the commissioner, based upon rules adopted by the
113.24Plumbing Board, showing fitness. Examination fees for both journeyman and master
113.25plumbers shall be $50 for each examination. Upon being notified of having successfully
113.26passed the examination for original license the applicant shall submit an application,
113.27with the license fee herein provided. The license fee for each initial and renewal master
113.28plumber's license shall be $120 $240. The license fee for each initial and renewal
113.29journeyman plumber's license shall be $55 $110. The commissioner may by rule prescribe
113.30for the expiration and renewal of licenses.
113.31(b) All initial master and journeyman plumber's licenses shall be effective for more
113.32than one calendar year and shall expire on December 31 of the year after the year in which
113.33the application is made. The license fee for each renewal master plumber's license shall be
114.1$120 for one year or $240 for two years. The license fee for each renewal journeyman
114.2plumber's license shall be $55 for one year or $110 for two years. The commissioner
114.3shall in a manner determined by the commissioner, without the need for any rulemaking
114.4under chapter 14, phase in the renewal of master and journeyman plumber's licenses from
114.5one year to two years. By June 30, 2011, all renewed master and journeyman plumber's
114.6licenses shall be two-year licenses.
114.7(c) Any licensee who does not renew a license within two years after the license
114.8expires is no longer eligible for renewal. Such an individual must retake and pass the
114.9examination before a new license will be issued. A journeyman or master plumber who
114.10submits a license renewal application after the time specified in rule but within two years
114.11after the license expired must pay all past due renewal fees plus a late fee of $25.

114.12    Sec. 18. Minnesota Statutes 2008, section 326B.56, subdivision 4, is amended to read:
114.13    Subd. 4. Fee. (a) The commissioner shall collect a $40 bond registration fee for
114.14one year or $80 for two years from each applicant for issuance or renewal of a water
114.15conditioning contractor or installer license who elects to proceed under subdivisions
114.161 and 2.
114.17(b) The commissioner shall in a manner determined by the commissioner, without
114.18the need for any rulemaking under chapter 14, phase in the bond registration from one year
114.19to two years so that the expiration of bond registration corresponds with the expiration of
114.20the license issued under section 326B.55.

114.21    Sec. 19. Minnesota Statutes 2008, section 326B.58, is amended to read:
114.22326B.58 FEES.
114.23    (a) Examination fees for both water conditioning contractors and water conditioning
114.24installers shall be $50 for each examination. Each initial water conditioning contractor
114.25and installer license shall be effective for more than one calendar year and shall expire on
114.26December 31 of the year for which it was issued after the year in which the application
114.27is made. The license fee for each initial water conditioning contractor's license shall be
114.28$70 $140, except that the license fee shall be $35 $105 if the application is submitted
114.29during the last three months of the calendar year. The license fee for each renewal water
114.30conditioning contractor's license shall be $70 for one year or $140 for two years. The
114.31license fee for each initial water conditioning installer license shall be $35 $70, except
114.32that the license fee shall be $17.50 $52.50 if the application is submitted during the last
114.33three months of the calendar year. The license fee for each renewal water conditioning
114.34installer license shall be $35 for one year or $70 for two years.
115.1(b) The commissioner shall in a manner determined by the commissioner, without
115.2the need for any rulemaking under chapter 14, phase in the renewal of water conditioning
115.3contractor and installer licenses from one year to two years. By June 30, 2011, all renewed
115.4water conditioning contractor and installer licenses shall be two-year licenses. The
115.5commissioner may by rule prescribe for the expiration and renewal of licenses.
115.6(c) Any licensee who does not renew a license within two years after the license
115.7expires is no longer eligible for renewal. Such an individual must retake and pass the
115.8examination before a new license will be issued. A water conditioning contractor or water
115.9conditioning installer who submits a license renewal application after the time specified
115.10in rule but within two years after the license expired must pay all past due renewal fees
115.11plus a late fee of $25.

115.12    Sec. 20. Minnesota Statutes 2008, section 326B.815, subdivision 1, is amended to read:
115.13    Subdivision 1. Licensing fee. (a) The licensing fee for persons licensed pursuant
115.14to sections 326B.802 to 326B.885, except for manufactured home installers, is $100 per
115.15year $200 for a two-year period. The licensing fee for manufactured home installers under
115.16section 327B.041 is $300 for a three-year period.
115.17(b) All initial licenses, except for manufactured home installer licenses, shall be
115.18effective for two years and shall expire on March 31 of the year after the year in which the
115.19application is made. The license fee for each renewal of a residential contractor, residential
115.20remodeler, or residential roofer license shall be $100 for one year and $200 for two years.
115.21(c) The commissioner shall in a manner determined by the commissioner, without
115.22the need for any rulemaking under chapter 14, phase in the renewal of residential
115.23contractor, residential remodeler, and residential roofer licenses from one year to two
115.24years. By June 30, 2011, all renewed residential contractor, residential remodeler, and
115.25residential roofer licenses shall be two-year licenses.

115.26    Sec. 21. Minnesota Statutes 2008, section 326B.821, subdivision 2, is amended to read:
115.27    Subd. 2. Hours. A qualifying person of a licensee must provide proof of completion
115.28of seven 14 hours of continuing education per year two-year licensure period in the
115.29regulated industry in which the licensee is licensed.
115.30    Credit may not be earned if the licensee has previously obtained credit for the same
115.31course as either a student or instructor during the same licensing period.

115.32    Sec. 22. Minnesota Statutes 2008, section 326B.86, subdivision 1, is amended to read:
116.1    Subdivision 1. Bond. (a) Licensed manufactured home installers and licensed
116.2residential roofers must post a surety bond in the name of the licensee with the
116.3commissioner, conditioned that the applicant shall faithfully perform the duties and
116.4in all things comply with all laws, ordinances, and rules pertaining to the license or
116.5permit applied for and all contracts entered into. The annual bond must be continuous
116.6and maintained for so long as the licensee remains licensed. The aggregate liability of
116.7the surety on the bond to any and all persons, regardless of the number of claims made
116.8against the bond, may not exceed the amount of the bond. The bond may be canceled as
116.9to future liability by the surety upon 30 days' written notice mailed to the commissioner
116.10by regular mail.
116.11    (b) A licensed residential roofer must post a bond of at least $15,000.
116.12    (c) A licensed manufactured home installer must post a bond of at least $2,500.
116.13    Bonds issued under sections 326B.802 to 326B.885 are not state bonds or contracts
116.14for purposes of sections 8.05 and 16C.05, subdivision 2.

116.15    Sec. 23. Minnesota Statutes 2008, section 326B.885, subdivision 2, is amended to read:
116.16    Subd. 2. Annual Renewal period. Any license issued or renewed after August
116.171, 1993, must be renewed annually except for (a) A residential contractor, residential
116.18remodeler, and residential roofer license shall have a renewal period of two years. The
116.19commissioner shall in a manner determined by the commissioner, without the need for any
116.20rulemaking under chapter 14, phase in the renewal of residential contractor, residential
116.21remodeler, and residential roofer licenses from one year to two years. By June 30, 2011,
116.22all renewed residential contractor, residential remodeler, and residential roofer licenses
116.23shall be two-year licenses.
116.24(b) A manufactured home installer's license which shall have a renewal period of
116.25three years, effective for all renewals and new licenses issued after December 31, 2008.

116.26    Sec. 24. Minnesota Statutes 2008, section 326B.89, subdivision 3, is amended to read:
116.27    Subd. 3. Fund fees. In addition to any other fees, a person who applies for or
116.28renews a license under sections 326B.802 to 326B.885 shall pay a fee to the fund. The
116.29person shall pay, in addition to the appropriate application or renewal fee, the following
116.30additional fee that shall be deposited in the fund. The amount of the fee shall be based on
116.31the person's gross annual receipts for the person's most recent fiscal year preceding the
116.32application or renewal, on the following scale:
116.33
Fee
Gross Annual Receipts
116.34
$160 $320
under $1,000,000
117.1
$210 $420
$1,000,000 to $5,000,000
117.2
$260 $520
over $5,000,000

117.3    Sec. 25. Minnesota Statutes 2008, section 326B.89, subdivision 16, is amended to read:
117.4    Subd. 16. Additional assessment. If the balance in the fund is at any time less
117.5than the commissioner determines is necessary to carry out the purposes of this section,
117.6every licensee, when renewing a license, shall pay, in addition to the annual renewal
117.7fee and the fee set forth in subdivision 3, an assessment not to exceed $100 $200. The
117.8commissioner shall set the amount of assessment based on a reasonable determination
117.9of the amount that is necessary to restore a balance in the fund adequate to carry out the
117.10purposes of this section.

117.11    Sec. 26. Minnesota Statutes 2008, section 326B.94, subdivision 4, is amended to read:
117.12    Subd. 4. Examinations, licensing. The commissioner shall develop and administer
117.13an examination for all masters of boats carrying passengers for hire on the inland waters of
117.14the state as to their qualifications and fitness. If found qualified and competent to perform
117.15their duties as a master of a boat carrying passengers for hire, they shall be issued a license
117.16authorizing them to act as such on the inland waters of the state. The license shall be
117.17renewed annually. All initial master's licenses shall be for two years. The commissioner
117.18shall in a manner determined by the commissioner, without the need for any rulemaking
117.19under chapter 14, phase in the renewal of master's licenses from one year to two years.
117.20By June 30, 2011, all renewed master's licenses shall be two-year licenses. Fees for the
117.21original issue and renewal of the license authorized under this section shall be pursuant to
117.22section 326B.986, subdivision 2.

117.23    Sec. 27. Minnesota Statutes 2008, section 326B.972, is amended to read:
117.24326B.972 LICENSE REQUIREMENT.
117.25    (a) To operate a boiler, steam engine, or turbine an individual must have received a
117.26license for the grade covering that boiler, steam engine, or turbine. The license must be
117.27renewed annually, except as provided Except for licenses described in section 326B.956
117.28and except for provisional licenses described in paragraphs (d) to (g);
117.29(1) all initial licenses shall be for two years;
117.30(2) the commissioner shall in a manner determined by the commissioner, without
117.31the need for any rulemaking under chapter 14, phase in the renewal of licenses from
117.32one year to two years; and
117.33(3) by June 30, 2011, all licenses shall be two-year licenses.
118.1    (b) For purposes of sections 326B.952 to 326B.998, "operation" does not include
118.2monitoring of an automatic boiler, either through on premises inspection of the boiler or
118.3by remote electronic surveillance, provided that no operations are performed upon the
118.4boiler other than emergency shut down in alarm situations.
118.5    (c) No individual under the influence of illegal drugs or alcohol may operate a boiler,
118.6steam engine, or turbine or monitor an automatic boiler.
118.7    (d) The commissioner may issue a provisional license to allow an employee of a
118.8high pressure boiler plant to operate boilers greater than 500 horsepower at only that
118.9boiler plant if:
118.10    (1) the boiler plant has a designated chief engineer in accordance with Minnesota
118.11Rules, part 5225.0410;
118.12    (2) the boiler plant employee holds a valid license as a second-class engineer,
118.13Grade A or B;
118.14    (3) the chief engineer in charge of the boiler plant submits an application to the
118.15commissioner on a form prescribed by the commissioner to elicit information on whether
118.16the requirements of this paragraph have been met;
118.17    (4) the chief engineer in charge of the boiler plant and an authorized representative
118.18of the owner of the boiler plant both sign the application for the provisional license;
118.19    (5) the owner of the boiler plant has a documented training program with examination
118.20for boilers and equipment at the boiler plant to train and test the boiler plant employee; and
118.21    (6) if the application were to be granted, the total number of provisional licenses
118.22for employees of the boiler plant would not exceed the total number of properly licensed
118.23first-class engineers and chief engineers responsible for the safe operation of the boilers
118.24at the boiler plant.
118.25    (e) A public utility, cooperative electric association, generation and transmission
118.26cooperative electric association, municipal power agency, or municipal electric utility
118.27that employs licensed boiler operators who are subject to an existing labor contract may
118.28use a provisional licensee as an operator only if using the provisional licensee does not
118.29violate the labor contract.
118.30    (f) Each provisional license expires 36 months after the date of issuance unless
118.31revoked less than 36 months after the date of issuance. A provisional license may not be
118.32renewed.
118.33    (g) The commissioner may issue no more than two provisional licenses to any
118.34individual within a four-year period.

118.35    Sec. 28. Minnesota Statutes 2008, section 326B.986, subdivision 2, is amended to read:
119.1    Subd. 2. Fee amounts; master's. The license and application fee for a an initial
119.2master's license is $50 $70, or $20 $40 if the applicant possesses a valid, unlimited, current
119.3United States Coast Guard master's license. The annual renewal of fee for a master's
119.4license is $20 for one year or $40 for two years. The annual renewal If the renewal fee is
119.5paid later than 30 days after expiration is $35. The fee for replacement of a current, valid
119.6license is $20, then a late fee of $15 will be added to the renewal fee.

119.7    Sec. 29. Minnesota Statutes 2008, section 326B.986, subdivision 5, is amended to read:
119.8    Subd. 5. Boiler engineer license fees. (a) For the following licenses, the
119.9nonrefundable license and application fee is:
119.10(1) chief engineer's license, $50 $70;
119.11(2) first class engineer's license, $50 $70;
119.12(3) second class engineer's license, $50 $70;
119.13(4) special engineer's license, $20 $40;
119.14(5) traction or hobby boiler engineer's license, $50; and
119.15(6) provisional license, $50.
119.16    (b) An engineer's license, except a provisional license, may be renewed upon
119.17application and payment of an annual a renewal fee of $20 for one year or $40 for two
119.18years. The annual renewal, If the renewal fee is paid later than 30 days after expiration,
119.19is $35. The fee for replacement of a current, valid license is $20 then a late fee of $15
119.20will be added to the renewal fee.

119.21    Sec. 30. Minnesota Statutes 2008, section 326B.986, subdivision 8, is amended to read:
119.22    Subd. 8. Certificate of competency. The fee for issuance of the original state
119.23of Minnesota certificate of competency for inspectors is $50. This fee is waived $85
119.24for inspectors who did not pay the examination fee or $35 for inspectors who paid
119.25the examination fee. All initial certificates of competency shall be effective for more
119.26than one calendar year and shall expire on December 31 of the year after the year in
119.27which the application is made. The commissioner shall in a manner determined by the
119.28commissioner, without the need for any rulemaking under chapter 14, phase in the renewal
119.29of certificates of competency from one calendar year to two calendar years. By June 30,
119.302011, all renewed certificates of competency shall be valid for two calendar years. The fee
119.31for an annual renewal of the state of Minnesota certificate of competency is $35 for one
119.32year or $70 for two years, and is due January 1 of each year. The fee for replacement of a
119.33current, valid license is $35 the day after the certificate expires.

120.1    Sec. 31. Minnesota Statutes 2008, section 327B.04, subdivision 7, is amended to read:
120.2    Subd. 7. Fees; Licenses; when granted. Each application for a license or license
120.3renewal must be accompanied by a fee in an amount established by the commissioner by
120.4rule pursuant to section 327B.10 subdivision 7a. The fees shall be set in an amount which
120.5over the fiscal biennium will produce revenues approximately equal to the expenses which
120.6the commissioner expects to incur during that fiscal biennium while administering and
120.7enforcing sections 327B.01 to 327B.12. The commissioner shall grant or deny a license
120.8application or a renewal application within 60 days of its filing. If the license is granted,
120.9the commissioner shall license the applicant as a dealer or manufacturer for the remainder
120.10of the calendar year licensure period. Upon application by the licensee, the commissioner
120.11shall renew the license for a two year period, if:
120.12    (a) (1) the renewal application satisfies the requirements of subdivisions 3 and 4;
120.13    (b) (2) the renewal applicant has made all listings, registrations, notices and reports
120.14required by the commissioner during the preceding year licensure period; and
120.15    (c) (3) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to
120.16327B.12 and all taxes, arrearages, and penalties owed to the state.

120.17    Sec. 32. Minnesota Statutes 2008, section 327B.04, is amended by adding a
120.18subdivision to read:
120.19    Subd. 7a. Fees. (a) Fees for licenses issued pursuant to this section are as follows:
120.20(1) initial dealer license for principal location, $400. Fee is not refundable;
120.21(2) initial dealer license for subagency location, $80;
120.22(3) dealer license biennial renewal, principal location, $400; dealer subagency
120.23location biennial renewal, $160. Subagency license renewal must coincide with the
120.24principal license date;
120.25(4) initial limited dealer license, $200;
120.26(5) change of bonding company, $10;
120.27(6) reinstatement of bond after cancellation notice has been received, $10;
120.28(7) checks returned without payment, $15; and
120.29(8) change of address, $10.
120.30(b) All initial limited dealer licenses shall be effective for more than one calendar
120.31year and shall expire on December 31 of the year after the year in which the application
120.32is made.
120.33(c) The license fee for each renewed limited dealer license shall be $100 for one
120.34year and $200 for two years. The commissioner shall in a manner determined by the
120.35commissioner, without the need for any rulemaking under chapter 14, phase in the renewal
121.1of limited dealer licenses from one year to two years. By June 30, 2011, all renewed
121.2limited dealer licenses shall be two-year licenses.
121.3(d) All fees are not refundable.

121.4    Sec. 33. Minnesota Statutes 2008, section 327B.04, subdivision 8, is amended to read:
121.5    Subd. 8. Limited dealer's license. The commissioner shall issue a limited dealer's
121.6license to an owner of a manufactured home park authorizing the licensee as principal
121.7only to engage in the sale, offering for sale, soliciting, or advertising the sale of used
121.8manufactured homes located in the owned manufactured home park. The licensee must
121.9be the title holder of the homes and may engage in no more than ten sales annually
121.10during each year of the two-year licensure period. An owner may, upon payment of the
121.11applicable fee and compliance with this subdivision, obtain a separate license for each
121.12owned manufactured home park and is entitled to sell up to ten 20 homes per license
121.13period provided that only one limited dealer license may be issued for each park. The
121.14license shall be issued after:
121.15    (1) receipt of an application on forms provided by the commissioner containing
121.16the following information:
121.17    (i) the identity of the applicant;
121.18    (ii) the name under which the applicant will be licensed and do business in this state;
121.19    (iii) the name and address of the owned manufactured home park, including a copy
121.20of the park license, serving as the basis for the issuance of the license;
121.21    (iv) the name, home, and business address of the applicant;
121.22    (v) the name, address, and telephone number of one individual that is designated
121.23by the applicant to receive all communications and cooperate with all inspections and
121.24investigations of the commissioner pertaining to the sale of manufactured homes in the
121.25manufactured home park owned by the applicant;
121.26    (vi) whether the applicant or its designated individual has been convicted of a crime
121.27within the previous ten years that is either related directly to the business for which the
121.28license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a
121.29judgment in a civil action involving fraud, misrepresentation, or conversion within the
121.30previous five years or has had any government license or permit suspended or revoked
121.31as a result of an action brought by a federal or state governmental agency in this or any
121.32other state within the last five years; and
121.33    (vii) the applicant's qualifications and business history, including whether the
121.34applicant or its designated individual has ever been adjudged bankrupt or insolvent, or has
121.35any unsatisfied court judgments outstanding against it or them;
122.1    (2) payment of a $100 annual the license fee established by subdivision 7a; and
122.2    (3) provision of a surety bond in the amount of $5,000. A separate surety bond
122.3must be provided for each limited license.
122.4    The applicant need not comply with section 327B.04, subdivision 4, paragraph (e).
122.5The holding of a limited dealer's license does not satisfy the requirement contained in
122.6section 327B.04, subdivision 4, paragraph (e), for the licensee or salespersons with respect
122.7to obtaining a dealer license. The commissioner may, upon application for a renewal of
122.8a license, require only a verification that copies of sales documents have been retained
122.9and payment of a $100 the renewal fee established by subdivision 7a. "Sales documents"
122.10mean only the safety feature disclosure form defined in section 327C.07, subdivision 3a,
122.11title of the home, financing agreements, and purchase agreements.
122.12    The license holder shall, upon request of the commissioner, make available for
122.13inspection during business hours sales documents required to be retained under this
122.14subdivision.

122.15    Sec. 34. REPEALER.
122.16Minnesota Rules, part 1350.8300, is repealed.

122.17ARTICLE 6
122.18MISCELLANEOUS PROVISIONS

122.19    Section 1. [1.1499] STATE SPORT.
122.20    Ice hockey is adopted as the official sport of the state of Minnesota.

122.21    Sec. 2. Minnesota Statutes 2008, section 41A.02, subdivision 17, is amended to read:
122.22    Subd. 17. Small business development loan. "Small business development loan"
122.23means a loan to a business that is an "eligible small business" to finance:
122.24(1) capital expenditures on an interim or long-term basis to acquire or improve land,
122.25acquire, construct, rehabilitate, remove, or improve buildings, or to acquire and install
122.26fixtures and equipment useful to conduct a small business, including facilities of a capital
122.27nature useful or suitable for a business engaged in an enterprise promoting employment
122.28including, without limitation, facilities included within the meaning of the term "project"
122.29as defined in sections 469.153, subdivision 2, and 469.155, subdivision 4;
122.30(2) working capital; and
122.31(3) intangible property, such as any patent, copyright, formula, process, design,
122.32pattern, know-how, format, or other similar item.

123.1    Sec. 3. Minnesota Statutes 2008, section 41A.036, subdivision 4, is amended to read:
123.2    Subd. 4. Exemption from limitation. If the board determines that a
123.3revenue-producing enterprise an eligible small business is eligible for special assistance,
123.4the $1,000,000 limitation established in subdivision 1 does not apply.

123.5    Sec. 4. Minnesota Statutes 2008, section 41A.036, subdivision 5, is amended to read:
123.6    Subd. 5. Designation; criteria. A revenue-producing enterprise An eligible
123.7small business is not eligible to receive special assistance unless the board has passed a
123.8resolution designating the revenue-producing enterprise eligible small business as being in
123.9need of special assistance. The resolution must include findings that the designation and
123.10receipt of the special assistance will be of exceptional benefit to the state of Minnesota in
123.11that at least three of the following criteria are met:
123.12(1) to expand or remain in Minnesota, the revenue-producing enterprise eligible
123.13small business has demonstrated that it cannot obtain suitable financing from other sources;
123.14(2) special assistance will enable a revenue-producing enterprise an eligible small
123.15business not currently located in Minnesota to locate a facility in Minnesota that directly
123.16increases the number of jobs in the state;
123.17(3) the revenue-producing enterprise eligible small business will create or retain
123.18significant numbers of jobs in a Minnesota community;
123.19(4) the revenue-producing enterprise eligible small business has a significant
123.20potential for growth in jobs or economic activities in Minnesota during the ensuing
123.21five-year period; and
123.22(5) the revenue-producing enterprise eligible small business will maintain a
123.23significant level of productivity in Minnesota during the ensuing five-year period.

123.24    Sec. 5. Minnesota Statutes 2008, section 85.0146, subdivision 1, is amended to read:
123.25    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation
123.26Area Citizens Advisory Council is established. Notwithstanding section 15.059, the
123.27council does not expire. Membership on the advisory council shall include:
123.28    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers
123.29Board;
123.30    (2) a representative of the Croft Mine Historical Park Joint Powers Board;
123.31    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has
123.32worked as a miner in the local area;
123.33    (4) a representative of the Crow Wing County Board;
123.34    (5) an elected state official;
124.1    (6) a representative of the Grand Rapids regional office of the Department of Natural
124.2Resources;
124.3    (7) a designee of the Iron Range Resources and Rehabilitation Board;
124.4    (8) a designee of the local business community selected by the area chambers of
124.5commerce;
124.6    (9) a designee of the local environmental community selected by the Crow Wing
124.7County District 5 commissioner;
124.8    (10) a designee of a local education organization selected by the Crosby-Ironton
124.9School Board;
124.10    (11) a designee of one of the recreation area user groups selected by the Cuyuna
124.11Range Chamber of Commerce; and
124.12    (12) a member of the Cuyuna Country Heritage Preservation Society.

124.13    Sec. 6. Minnesota Statutes 2008, section 89A.08, subdivision 1, is amended to read:
124.14    Subdivision 1. Establishment. The council shall appoint a Forest Resources
124.15Research Advisory Committee. Notwithstanding section 15.059, the council does not
124.16expire. The committee must consist of representatives of:
124.17(1) the College of Natural Resources, University of Minnesota;
124.18(2) the Natural Resources Research Institute, University of Minnesota;
124.19(3) the department;
124.20(4) the North Central Forest Experiment Station, United States Forest Service; and
124.21(5) other organizations as deemed appropriate by the council.

124.22    Sec. 7. Minnesota Statutes 2008, section 115C.08, subdivision 4, is amended to read:
124.23    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
124.24(1) to administer the petroleum tank release cleanup program established in this
124.25chapter;
124.26(2) for agency administrative costs under sections 116.46 to 116.50, sections
124.27115C.03 to 115C.06, and costs of corrective action taken by the agency under section
124.28115C.03 , including investigations;
124.29(3) for costs of recovering expenses of corrective actions under section 115C.04;
124.30(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
124.31(5) for agency administrative costs of enforcing rules governing the construction,
124.32installation, operation, and closure of aboveground and underground petroleum storage
124.33tanks;
125.1(6) for reimbursement of the environmental response, compensation, and compliance
125.2account under subdivision 5 and section 115B.26, subdivision 4;
125.3(7) for administrative and staff costs as set by the board to administer the petroleum
125.4tank release program established in this chapter;
125.5(8) for corrective action performance audits under section 115C.093;
125.6(9) for contamination cleanup grants, as provided in paragraph (c); and
125.7(10) to assess and remove abandoned underground storage tanks under section
125.8115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
125.9services costs necessary to complete the tank removal project, including, but not limited
125.10to, excavation soil sampling, groundwater sampling, soil disposal, and completion of an
125.11excavation report.
125.12(b) Except as provided in paragraph (c), money in the fund is appropriated to the
125.13board to make reimbursements or payments under this section.
125.14(c) $6,200,000 is annually appropriated from the fund to the commissioner of
125.15employment and economic development for contamination cleanup grants under section
125.16116J.554 . Of this amount, the commissioner may spend up to $180,000 annually for
125.17administration of the contamination cleanup grant program. The appropriation does not
125.18cancel and is available until expended. The appropriation shall not be withdrawn from
125.19the fund nor the fund balance reduced until the funds are requested by the commissioner
125.20of employment and economic development. The commissioner shall schedule requests
125.21for withdrawals from the fund to minimize the necessity to impose the fee authorized by
125.22subdivision 2. Unless otherwise provided, the appropriation in this paragraph may be
125.23used for:
125.24(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
125.25to petroleum contamination or new and used tar and tar-like substances, including but not
125.26limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
125.27primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
125.28fractions, or residues from the processing of petroleum crude or petroleum products as
125.29defined in section 296A.01; and
125.30(2) the costs of performing contamination investigation if there is a reasonable basis
125.31to suspect the contamination is attributable to petroleum or new and used tar and tar-like
125.32substances, including but not limited to bitumen and asphalt, but excluding bituminous or
125.33asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
125.34in the earth or are distillates, fractions, or residues from the processing of petroleum crude
125.35or petroleum products as defined in section 296A.01.

126.1    Sec. 8. [137.701] UNIVERSITY NEIGHBORHOOD DEVELOPMENT.
126.2    Subdivision 1. Purpose. In order to support and create an environment surrounding
126.3the campuses of the University of Minnesota in Minneapolis and Duluth, that is conducive
126.4to the purposes of higher education and a vital community, the Board of Regents and
126.5the cities of Minneapolis and Duluth shall create with the Marcy Holmes, Southeast
126.6Como, Prospect Park, and Cedar-Riverside neighborhood and business associations, an
126.7appropriate organization so that they cooperate in the development of those neighborhoods.
126.8The organization shall include representatives from the Marcy Holmes, Southeast Como,
126.9Prospect Park, and Cedar-Riverside neighborhood and business associations. The purpose
126.10of the organization is to improve the university's Minneapolis and Duluth campus area
126.11neighborhoods including, but not limited to, the following:
126.12(1) providing and supporting the development of good quality university
126.13neighborhood housing, including housing for students, faculty, employees, alumni, and
126.14others who may wish to live in the university area neighborhoods;
126.15(2) encouraging and assisting university faculty, staff, students, and others to live in
126.16the neighborhood as long-term residents;
126.17(3) supporting and assisting appropriate business development in commercial areas
126.18of the neighborhood; and
126.19(4) cooperating and coordinating planning and development in all matters affecting
126.20the neighborhood with local government, businesses, residents, and other stakeholders in
126.21the neighborhood.
126.22    Subd. 2. Membership. The organization created by the Board of Regents and
126.23the city of Minneapolis shall include representatives from the organizations currently
126.24represented on the University District Alliance Steering Committee. The Board of
126.25Regents and the city of Duluth may establish the membership of an organization for the
126.26purposes of subdivision 1.
126.27    Subd. 3. Report. The Board of Regents and the cities of Minneapolis and Duluth
126.28shall report by January 15, 2010, to the chairs and ranking minority members of the
126.29legislative committees with primary jurisdiction over higher education policy and
126.30finance and economic development and housing finance on the status and activities of
126.31the organization that is created.

126.32    Sec. 9. Minnesota Statutes 2008, section 154.001, is amended to read:
126.33154.001 BOARD OF BARBER AND COSMETOLOGIST EXAMINERS
126.34CREATED; TERMS.
127.1    Subdivision 1. Definition. For the purposes of this chapter, "board" means the
127.2Board of Barber Examiners.
127.3    Subd. 2. Board of Barber Examiners. (a) A Board of Barber and Cosmetologist
127.4Examiners is established to consist of three barber members, three cosmetologist members,
127.5and one public member, as defined in section 214.02, appointed by the governor.
127.6(b) The barber members shall be persons who have practiced as registered barbers in
127.7this state for at least five years immediately prior to their appointment; shall be graduates
127.8from the 12th grade of a high school or have equivalent education, and shall have
127.9knowledge of the matters to be taught in registered barber schools, as set forth in section
127.10154.07 . One of the barber members shall be a member of, or recommended by, a union of
127.11journeymen barbers that has existed at least two years, and one barber member shall be a
127.12member of, or recommended by, a professional organization of barbers.
127.13(c) All cosmetologist members must be currently licensed in the field of cosmetology
127.14in Minnesota, have practiced in the licensed occupation for at least five years immediately
127.15prior to their appointment, be graduates from the 12th grade of high school or have
127.16equivalent education, and have knowledge of sections 154.40 to 154.54 and Minnesota
127.17Rules, chapters 2642 and 2644. The cosmetologist members shall be members of,
127.18or recommended by, a professional organization of cosmetologists, manicurists, or
127.19estheticians.
127.20    (d) Subd. 3. Membership terms. (a) Membership terms, compensation of
127.21members, removal of members, the filling of membership vacancies, and fiscal year and
127.22reporting requirements shall be as provided in sections 214.07 to 214.09. The provision of
127.23staff, administrative services and office space; the review and processing of complaints;
127.24the setting of board fees; and other provisions relating to board operations shall be as
127.25provided in chapter 214.
127.26(e) (b) Members appointed to fill vacancies caused by death, resignation, or removal
127.27shall serve during the unexpired term of their predecessors.
127.28(f) The barber members of the board shall separately oversee administration,
127.29enforcement, and regulation of, and adoption of rules under, sections 154.001, 154.002,
127.30154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26. The cosmetologist
127.31members of the board shall separately oversee administration, enforcement, and regulation
127.32of, and adoption of rules under, sections 154.40 to 154.54. Staff hired by the board,
127.33including inspectors, shall serve both professions.

127.34    Sec. 10. Minnesota Statutes 2008, section 154.003, is amended to read:
127.35154.003 FEES.
128.1    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
128.2board, shall be paid to the executive secretary of the board. The executive secretary shall
128.3deposit the fees in the general fund in the state treasury.
128.4    (b) The board shall charge the following fees:
128.5    (1) examination and certificate, registered barber, $65;
128.6    (2) examination and certificate, apprentice, $60;
128.7    (3) examination, instructor, $160;
128.8    (4) certificate, instructor, $45;
128.9    (5) temporary teacher or apprentice permit, $50 $60;
128.10    (6) renewal of license, registered barber, $50 $60;
128.11    (7) renewal of license, apprentice, $45 $50;
128.12    (8) renewal of license, instructor, $60;
128.13    (9) renewal of temporary teacher permit, $35 $45;
128.14    (10) student permit, $25;
128.15    (11) initial shop registration, $60 $65;
128.16    (12) initial school registration, $1,010;
128.17    (13) renewal shop registration, $60 $65;
128.18    (14) renewal school registration, $260;
128.19    (15) restoration of registered barber license, $75;
128.20    (16) restoration of apprentice license, $70;
128.21    (17) restoration of shop registration, $85;
128.22    (18) change of ownership or location, $35;
128.23    (19) duplicate license, $20;
128.24    (20) home study course, $75; and
128.25    (21) registration of hair braiders, $20 per year.

128.26    Sec. 11. Minnesota Statutes 2008, section 154.19, is amended to read:
128.27154.19 VIOLATIONS.
128.28Each of the following constitutes a misdemeanor:
128.29(1) The violation of any of the provisions of section 154.01;
128.30(2) Permitting any person in one's employ, supervision, or control to practice as a
128.31registered barber or registered apprentice unless that person has a certificate of registration
128.32as a registered barber or registered apprentice;
128.33(3) Obtaining or attempting to obtain a certificate of registration for money other
128.34than the required fee, or any other thing of value, or by fraudulent misrepresentation;
128.35(4) Practicing or attempting to practice by fraudulent misrepresentation;
129.1(5) The willful failure to display a certificate of registration as required by section
129.2154.14 ;
129.3(6) The use of any room or place for barbering which is also used for residential or
129.4business purposes, except the sale of hair tonics, lotions, creams, cutlery, toilet articles,
129.5cigars, tobacco, candies in original package, and such commodities as are used and sold in
129.6barber shops, and except that shoeshining and an agency for the reception and delivery of
129.7laundry, or either, may be conducted in a barber shop without the same being construed
129.8as a violation of this section, unless a substantial partition of ceiling height separates the
129.9portion used for residential or business purposes, and where a barber shop is situated in a
129.10residence, poolroom, confectionery, store, restaurant, garage, clothing store, liquor store,
129.11hardware store, or soft drink parlor, there must be an outside entrance leading into the
129.12barber shop independent of any entrance leading into such business establishment, except
129.13that this provision as to an outside entrance shall not apply to barber shops in operation at
129.14the time of the passage of this section and except that a barber shop and beauty parlor may
129.15be operated in conjunction, without the same being separated by partition of ceiling height;
129.16(7) The failure or refusal of any barber or other person in charge of any barber shop,
129.17or any person in barber schools or colleges doing barber service work, to use separate
129.18and clean towels for each customer or patron, or to discard and launder each towel after
129.19once being used;
129.20(8) The failure or refusal by any barber or other person in charge of any barber shop
129.21or barber school or barber college to supply clean hot and cold water in such quantities as
129.22may be necessary to conduct such shop, or the barbering service of such school or college,
129.23in a sanitary manner, or the failure or refusal of any such person to have water and sewer
129.24connections from such shop, or barber school or college, with municipal water and sewer
129.25systems where the latter are available for use, or the failure or refusal of any such person
129.26to maintain a receptacle for hot water of a capacity of not less than five gallons;
129.27(9) For the purposes of sections 154.001, 154.002, 154.003, 154.01 to 154.161,
129.28154.19 to 154.21, and 154.24 to 154.26 this section, barbers, students, apprentices, or
129.29the proprietor or manager of a barber shop, or barber school or barber college, shall be
129.30responsible for all violations of the sanitary provisions of sections 154.001, 154.002,
129.31154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 this section, and if
129.32any barber shop, or barber school or barber college, upon inspection, shall be found to be
129.33in an unsanitary condition, the person making such inspection shall immediately issue an
129.34order to place the barber shop, or barber school, or barber college, in a sanitary condition,
129.35in a manner and within a time satisfactory to the Board of Barber and Cosmetologist
129.36Examiners, and for the failure to comply with such order the board shall immediately
130.1file a complaint for the arrest of the persons upon whom the order was issued, and any
130.2registered barber who shall fail to comply with the rules adopted by the Board of Barber
130.3and Cosmetologist Examiners, with the approval of the state commissioner of health, or
130.4the violation or commission of any of the offenses described in this section and section
130.5154.16 154.161, subdivision 4, paragraph (a), clauses (1), (2), (3), and (4), (5), (6), (7),
130.6(8), (9) to (12), and of clauses (1), (2), (3), (4), (5), (6), (7), (8), and (9) of this section,
130.7shall be fined not less than $10 or imprisoned for ten days and not more than $100 or
130.8imprisoned for 90 days.

130.9    Sec. 12. Minnesota Statutes 2008, section 154.44, subdivision 1, is amended to read:
130.10    Subdivision 1. Schedule. The fee schedule for licensees is as follows:
130.11(a) Three-year license fees:
130.12(1) cosmetologist, manicurist, esthetician, $90 for each initial license, and $60 for
130.13each renewal;
130.14(2) instructor, manager, $120 for each initial license, and $90 for each renewal;
130.15(3) salon, $130 for each initial license, and $100 for each renewal; and
130.16(4) school, $1,500.
130.17(b) Penalties:
130.18(1) reinspection fee, variable; and
130.19(2) manager and owner with lapsed practitioner, $25 $150 each;
130.20(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and
130.21instructor license, $45; and
130.22(4) expired salon or school license, $50.
130.23(c) Administrative fees:
130.24(1) certificate of identification, $20; and
130.25(2) school original application, $150;
130.26(3) name change, $20;
130.27(4) letter of license verification, $30;
130.28(5) duplicate license, $20;
130.29(6) processing fee, $10; and
130.30(7) special event permit, $75 per year.
130.31(d) All fees established in this subdivision must be paid to the executive secretary
130.32of the board. The executive secretary of the board shall deposit the fees in the general
130.33fund in the state treasury.

131.1    Sec. 13. Minnesota Statutes 2008, section 154.51, is amended to read:
131.2154.51 ENFORCEMENT.
131.3    Subdivision 1. Proceedings. The provisions of section 154.161 apply to the
131.4administration of sections 154.40 to 154.54. If the board, or a complaint committee if
131.5authorized by the board, has a reasonable basis for believing that a person has engaged in
131.6or is about to engage in a violation of a statute, rule, or order that the board has adopted
131.7or issued or is empowered to enforce, the board or complaint committee may proceed as
131.8provided in subdivision 2 or 3. Except as otherwise provided in this section, all hearings
131.9must be conducted in accordance with the Administrative Procedure Act.
131.10    Subd. 2. Legal actions. (a) When necessary to prevent an imminent violation of a
131.11statute, rule, or order that the board has adopted or issued or is empowered to enforce, the
131.12board, or a complaint committee if authorized by the board, may bring an action in the
131.13name of the state in the District Court of Ramsey County in which jurisdiction is proper to
131.14enjoin the act or practice and to enforce compliance with the statute, rule, or order. On a
131.15showing that a person has engaged in or is about to engage in an act or practice that
131.16constitutes a violation of a statute, rule, or order that the board has adopted or issued
131.17or is empowered to enforce, the court shall grant a permanent or temporary injunction,
131.18restraining order, or other appropriate relief.
131.19(b) For purposes of injunctive relief under this subdivision, irreparable harm exists
131.20when the board shows that a person has engaged in or is about to engage in an act or
131.21practice that constitutes violation of a statute, rule, or order that the board has adopted or
131.22issued or is empowered to enforce.
131.23(c) Injunctive relief granted under paragraph (a) does not relieve an enjoined person
131.24from criminal prosecution by a competent authority, or from action by the board under
131.25subdivision 3, 4, 5, or 6 with respect to the person's license or registration, or application
131.26for examination, license, registration, or renewal.
131.27    Subd. 3. Cease and desist orders. (a) The board, or complaint committee if
131.28authorized by the board, may issue and have served upon an unlicensed or unregistered
131.29person, or a holder of a license or registration, an order requiring the person to cease and
131.30desist from an act or practice that constitutes a violation of a statute, rule, or order that
131.31the board has adopted or issued or is empowered to enforce. The order must (1) give
131.32reasonable notice of the rights of the person named in the order to request a hearing,
131.33and (2) state the reasons for the entry of the order. No order may be issued under this
131.34subdivision until an investigation of the facts has been conducted under section 214.10.
132.1(b) Service of the order under this subdivision is effective when the order is
132.2personally served on the person or counsel of record, or served by certified mail to the
132.3most recent address provided to the board for the person or counsel of record.
132.4(c) The board must hold a hearing under this subdivision not later than 30 days after
132.5the board receives the request for the hearing, unless otherwise agreed between the board,
132.6or complaint committee if authorized by the board, and the person requesting the hearing.
132.7(d) Notwithstanding any rule to the contrary, the administrative law judge must issue
132.8a report within 30 days of the close of the contested case hearing. Within 30 days after
132.9receiving the report and subsequent exceptions and argument, the board shall issue a
132.10further order vacating, modifying, or making permanent the cease and desist order. If no
132.11hearing is requested within 30 days of service of the order, the order becomes final and
132.12remains in effect until modified or vacated by the board.
132.13    Subd. 4. Licensing and registration actions. (a) With respect to a person who is a
132.14holder of or applicant for a license or registration under this chapter, the board may by
132.15order deny, refuse to renew, suspend, temporarily suspend, or revoke the application,
132.16license, or registration, censure or reprimand the person, refuse to permit the person to
132.17sit for examination, or refuse to release the person's examination grades, if the board
132.18finds that such an order is in the public interest and that, based on a preponderance of the
132.19evidence presented, the person has:
132.20(1) violated a statute, rule, or order that the board has adopted or issued or is
132.21empowered to enforce;
132.22(2) engaged in conduct or acts that are fraudulent, deceptive, or dishonest, whether
132.23or not the conduct or acts relate to the practice of a profession regulated by this chapter, if
132.24the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on the person's
132.25ability or fitness to engage in the practice of the profession;
132.26(3) engaged in conduct or acts that constitute malpractice, are negligent, demonstrate
132.27incompetence, or are otherwise in violation of the standards in the rules of the board,
132.28where the conduct or acts relate to the practice of a profession regulated by this chapter;
132.29(4) employed fraud or deception in obtaining a license, registration, renewal, or
132.30reinstatement, or in passing all or a portion of the examination;
132.31(5) had a license, registration, right to examine, or other similar authority revoked in
132.32another jurisdiction;
132.33(6) failed to meet any requirement for issuance or renewal of the person's license
132.34or registration;
132.35(7) practiced in a profession regulated by this chapter while having an infectious or
132.36contagious disease;
133.1(8) advertised by means of false or deceptive statements;
133.2(9) demonstrated intoxication or indulgence in the use of drugs, including but not
133.3limited to narcotics as defined in section 152.01 or in United States Code, title 26, section
133.44731, barbiturates, amphetamines, Benzedrine, Dexedrine, or other sedatives, depressants,
133.5stimulants, or tranquilizers;
133.6(10) demonstrated unprofessional conduct or practice;
133.7(11) permitted an employee or other person under the person's supervision or control
133.8to practice as a licensee, registrant, or instructor of a profession regulated by this chapter
133.9unless that person has (i) a current license or registration issued by the board, (ii) a
133.10temporary apprentice permit, or (iii) a temporary permit as an instructor of a profession
133.11regulated by the board;
133.12(12) practices, offered to practice, or attempted to practice by misrepresentation;
133.13(13) failed to display a license or registration as required by rules adopted by the
133.14board;
133.15(14) used any room or place of practice of a profession regulated by the board that
133.16is also used for any other purpose, or used any room or place of practice of a profession
133.17regulated by the board that violates the board's rules governing sanitation;
133.18(15) failed to use separate and clean towels for each customer or patron, or to discard
133.19and launder each towel after being used once;
133.20(16) in the case of a licensee, registrant, or other person in charge of any school or
133.21place of practice of a profession regulated by the board, (i) failed to supply in a sanitary
133.22manner clean hot and cold water in quantities necessary to conduct the service or practice
133.23of the profession regulated by the board, (ii) failed to have water and sewer connections
133.24from the place of practice or school with municipal water and sewer systems where they
133.25are available for use, or (iii) failed or refused to maintain a receptacle for hot water of a
133.26capacity of at least five gallons;
133.27(17) refused to permit the board to make an inspection permitted or required by this
133.28chapter, or failed to provide the board or the attorney general on behalf of the board
133.29with any documents or records they request;
133.30(18) failed promptly to renew a license or registration when remaining in practice,
133.31pay the required fee, or issue a worthless check;
133.32(19) failed to supervise an apprentice, or permitted the practice of a profession
133.33regulated by the board by a person not registered or licensed with the board or not holding
133.34a temporary permit;
133.35(20) refused to serve a customer because of race, color, creed, religion, disability,
133.36national origin, or sex;
134.1(21) failed to comply with a provision of chapter 141 or a provision of another
134.2chapter that relates to schools; or
134.3(22) with respect to temporary suspension orders, has committed an act, engaged
134.4in conduct, or committed practices that the board, or complaint committee if authorized
134.5by the board, has determined may result or may have resulted in an immediate threat
134.6to the public.
134.7(b) In lieu of or in addition to any remedy under paragraph (a), the board may, as a
134.8condition of continued licensure or registration, termination of suspension, reinstatement
134.9of licensure or registration, examination, or release of examination results, require that
134.10the person:
134.11(1) submit to a quality review of the person's ability, skills, or quality of work,
134.12conducted in a manner and by a person or entity that the board determines; or
134.13(2) completes to the board's satisfaction continuing education as the board requires.
134.14(c) Service of an order under this subdivision is effective if the order is served in
134.15person, or is served by certified mail to the most recent address provided to the board by
134.16the licensee, registrant, applicant, or counsel of record. The order must state the reason
134.17for the entry of the order.
134.18(d) Except as provided in subdivision 5, paragraph (c), all hearings under this
134.19subdivision must be conducted in accordance with the Administrative Procedure Act.
134.20    Subd. 5. Temporary suspension. (a) When the board, or complaint committee if
134.21authorized by the board, issues a temporary suspension order, the suspension provided for
134.22in the order is effective on service of a written copy of the order on the licensee, registrant,
134.23or counsel of record. The order must specify the statute, rule, or order violated by the
134.24licensee or registrant. The order remains in effect until the board issues a final order in the
134.25matter after a hearing, or on agreement between the board and the licensee or registrant.
134.26(b) An order under this subdivision may (1) prohibit the licensee or registrant from
134.27engaging in the practice of a profession regulated by the board in whole or in part, as the
134.28facts require, and (2) condition the termination of the suspension on compliance with a
134.29statute, rule, or order that the board has adopted or issued or is empowered to enforce.
134.30The order must state the reasons for entering the order and must set forth the right to
134.31a hearing as provided in this subdivision.
134.32(c) Within ten days after service of an order under this subdivision, the licensee or
134.33registrant may request a hearing in writing. The board must hold a hearing before its own
134.34members within five working days of the request for a hearing. The sole issue at the
134.35hearing must be whether there is a reasonable basis to continue, modify, or terminate the
134.36temporary suspension. The hearing is not subject to the Administrative Procedure Act.
135.1Evidence presented to the board or the licensee or registrant may be in affidavit form only.
135.2The licensee, registrant, or counsel of record may appear for oral argument.
135.3(d) Within five working days after the hearing, the board shall issue its order and, if
135.4the order continues the suspension, shall schedule a contested case hearing within 30 days
135.5of the issuance of the order. Notwithstanding any rule to the contrary, the administrative
135.6law judge shall issue a report within 30 days after the closing of the contested case hearing
135.7record. The board shall issue a final order within 30 days of receiving the report.
135.8    Subd. 6. Violations; penalties; costs. (a) The board may impose a civil penalty of
135.9up to $2,000 per violation on a person who violates a statute, rule, or order that the board
135.10has adopted or issued or is empowered to enforce.
135.11(b) In addition to any penalty under paragraph (a), the board may impose a fee
135.12to reimburse the board for all or part of the cost of (1) the proceedings resulting in
135.13disciplinary action authorized under this section, (2) the imposition of a civil penalty under
135.14paragraph (a), or (3) the issuance of a cease and desist order. The board may impose a
135.15fee under this paragraph when the board shows that the position of the person who has
135.16violated a statute, rule, or order that the board has adopted or issued or is empowered to
135.17enforce is not substantially justified unless special circumstances make such a fee unjust,
135.18notwithstanding any rule to the contrary. Costs under this paragraph include, but are not
135.19limited to, the amount paid by the board for services from the Office of Administrative
135.20Hearings, attorney fees, court reporter costs, witness costs, reproduction of records, board
135.21members' compensation, board staff time, and expenses incurred by board members and
135.22staff.
135.23(c) All hearings under this subdivision must be conducted in accordance with the
135.24Administrative Procedure Act.
135.25    Subd. 7. Reinstatement. Upon petition of the former or suspended licensee or
135.26registrant, the board may reinstate a suspended, revoked, or surrendered license or
135.27registration. The board may in its sole discretion place any conditions on reinstatement of
135.28a suspended, revoked, or surrendered license or registration that it finds appropriate and
135.29necessary to ensure that the purposes of this chapter are met. No license or registration
135.30may be reinstated until the former licensee or registrant has completed at least one-half
135.31of the suspension period.

135.32    Sec. 14. [155A.20] BOARD OF COSMETOLOGIST EXAMINERS CREATED;
135.33TERMS.
136.1(a) A Board of Cosmetologist Examiners is established to consist of three
136.2cosmetologist members and one public member, as defined in section 214.02, appointed
136.3by the governor.
136.4(b) All cosmetologist members must be currently licensed in the field of cosmetology,
136.5manicuring, or esthetology, in Minnesota, have practiced in the licensed occupation for
136.6at least five years immediately prior to their appointment, be graduates from grade 12
136.7of high school or have equivalent education, and have knowledge of sections 154.40
136.8to 154.54 and Minnesota Rules, chapters 2105 and 2110. The cosmetologist members
136.9shall be members of, or recommended by, a professional organization of cosmetologists,
136.10manicurists, or estheticians.
136.11(c) Membership terms, compensation of members, removal of members, the filling
136.12of membership vacancies, and fiscal year and reporting requirements shall be as provided
136.13in sections 214.07 to 214.09. The provision of staff, administrative services, and office
136.14space; the review and processing of complaints; the setting of board fees; and other
136.15provisions relating to board operations shall be as provided in chapter 214.
136.16(d) Members appointed to fill vacancies caused by death, resignation, or removal
136.17shall serve during the unexpired term of their predecessors.

136.18    Sec. 15. [155A.21] SPECIAL EVENTS.
136.19    Subdivision 1. Special event services. For purposes of this section, "special event
136.20services" means services rendered for compensation and performed at a location other
136.21than a licensed salon. These services include, but are not limited to, the practice of
136.22nonpermanent manipulation of the hair, such as styling, setting, reinforcing, or extending
136.23the hair; the application of nail polish to the nails; and the application of makeup to the
136.24skin.
136.25    Subd. 2. Special event services permit. (a) No person shall perform special event
136.26services without first obtaining a special event services permit from the board. To be
136.27eligible for a special event services permit, a person must have a valid manager's license
136.28issued by the board under the authority of section 154.46.
136.29(b) An individual applying for a special event services permit must submit to the
136.30board, on a form approved by the board, an application for a special event services permit.
136.31(c) An individual providing services under a special event services permit may only
136.32perform services within the individual's specific field of licensure and as defined by the
136.33permit. The services provided pursuant to the special event services permit must comply
136.34with the requirements of this chapter and all federal, state, and local laws.

137.1    Sec. 16. Minnesota Statutes 2008, section 178.02, subdivision 2, is amended to read:
137.2    Subd. 2. Terms. The board shall not expire. and The terms, compensation, and
137.3removal of appointed members shall be as provided in section 15.059.

137.4    Sec. 17. Minnesota Statutes 2008, section 181.723, is amended by adding a subdivision
137.5to read:
137.6    Subd. 17. Advisory task force on employee misclassification. (a) The
137.7commissioner of the Department of Labor and Industry shall appoint an advisory task
137.8force on employee misclassification and "off-the-books" payment of workers in the
137.9construction industry. The advisory task force shall consist of the following members:
137.10(1) the commissioner of the Department of Labor and Industry or designee;
137.11(2) the commissioner of the Department of Employment and Economic Development
137.12or designee;
137.13(3) the commissioner of the Department of Revenue or designee;
137.14(4) the attorney general or designee;
137.15(5) a representative appointed by the Minnesota County Attorneys Association;
137.16(6) two members who are members of a labor organization that represents members
137.17who perform public or private sector commercial or residential building construction
137.18or improvement services;
137.19(7) one member who is a general contractor or a representative of general contractors
137.20that performs public or private sector commercial building construction or improvement
137.21services;
137.22(8) one member who is a general contractor or a representative of general contractors
137.23that performs public or private sector residential building construction or improvement
137.24services;
137.25(9) one member who is a subcontractor or a representative of subcontractors that
137.26performs public or private sector commercial building construction or improvement
137.27services;
137.28(10) one member who is a subcontractor or a representative of subcontractors
137.29that performs public or private sector residential building construction or improvement
137.30services; and
137.31(11) up to three additional members who perform public or private sector commercial
137.32or residential building and construction or improvement services including one member
137.33who is an independent contractor with a current independent contractor certificate; one
137.34member who is a limited liability corporation; and one member who is an employee.
138.1The commissioner of the Department of Labor and Industry or designee shall serve
138.2as the advisory task force chair. The advisory task force shall meet on a regular basis.
138.3(b) The advisory task force shall have the following duties:
138.4(1) advise the commissioner on the development, implementation, and coordination
138.5of enforcement activities, including information sharing and joint investigation and
138.6prosecution of persons who violate laws under the jurisdiction of the Department of
138.7Labor and Industry, Department of Employment and Economic Development, and the
138.8Department of Revenue; and
138.9(2) advise the commissioner on the development and adoption of necessary
138.10legislation, regulations, policies, and procedures.
138.11(c) The advisory task force shall expire and the terms, compensation, and removal of
138.12members shall be as provided in section 15.059, subdivision 6.
138.13(d) The advisory task force shall, prior to its expiration, report to the legislature a
138.14summary of the advice it provided to the commissioner.
138.15EFFECTIVE DATE.This section is effective the day following final enactment.

138.16    Sec. 18. Minnesota Statutes 2008, section 182.656, subdivision 3, is amended to read:
138.17    Subd. 3. Meetings; expiration of council. A majority of the council members
138.18constitutes a quorum. The council shall meet at the call of its chair, or upon request of any
138.19six members. A tape recording of the meeting with the tape being retained for a one-year
138.20period will be available upon the request and payment of costs to any interested party. The
138.21council shall expire and the terms, compensation, and removal of members shall be as
138.22provided in section 15.059, except that the council shall not expire before June 30, 2003.

138.23    Sec. 19. Minnesota Statutes 2008, section 214.01, subdivision 3, is amended to read:
138.24    Subd. 3. Non-health-related licensing board. "Non-health-related licensing
138.25board" means the Board of Teaching established pursuant to section 122A.07, the Board
138.26of Barber Examiners established pursuant to section 154.001, the Board of Cosmetologist
138.27Examiners established pursuant to section 155A.20, the Board of Assessors established
138.28pursuant to section 270.41, the Board of Architecture, Engineering, Land Surveying,
138.29Landscape Architecture, Geoscience, and Interior Design established pursuant to section
138.30326.04 , the Private Detective and Protective Agent Licensing Board established pursuant
138.31to section 326.33, the Board of Accountancy established pursuant to section 326A.02, and
138.32the Peace Officer Standards and Training Board established pursuant to section 626.841.

138.33    Sec. 20. Minnesota Statutes 2008, section 214.04, subdivision 3, is amended to read:
139.1    Subd. 3. Officers; staff. The executive director of each health-related board and
139.2the executive secretary of each non-health-related board shall be the chief administrative
139.3officer for the board but shall not be a member of the board. The executive director or
139.4executive secretary shall maintain the records of the board, account for all fees received
139.5by it, supervise and direct employees servicing the board, and perform other services as
139.6directed by the board. The executive directors, executive secretaries, and other employees
139.7of the following boards shall be hired by the board, and the executive directors or executive
139.8secretaries shall be in the unclassified civil service, except as provided in this subdivision:
139.9    (1) Dentistry;
139.10    (2) Medical Practice;
139.11    (3) Nursing;
139.12    (4) Pharmacy;
139.13    (5) Accountancy;
139.14    (6) Architecture, Engineering, Land Surveying, Landscape Architecture,
139.15Geoscience, and Interior Design;
139.16    (7) Barber Examiners;
139.17    (8) Cosmetology Cosmetologist Examiners;
139.18    (9) Teaching;
139.19    (10) Peace Officer Standards and Training;
139.20    (11) Social Work;
139.21    (12) Marriage and Family Therapy;
139.22    (13) Dietetics and Nutrition Practice;
139.23    (14) Licensed Professional Counseling; and
139.24    (15) Combative Sports Commission.
139.25    The executive directors or executive secretaries serving the boards are hired by those
139.26boards and are in the unclassified civil service, except for part-time executive directors
139.27or executive secretaries, who are not required to be in the unclassified service. Boards
139.28not requiring full-time executive directors or executive secretaries may employ them on
139.29a part-time basis. To the extent practicable, the sharing of part-time executive directors
139.30or executive secretaries by boards being serviced by the same department is encouraged.
139.31Persons providing services to those boards not listed in this subdivision, except executive
139.32directors or executive secretaries of the boards and employees of the attorney general, are
139.33classified civil service employees of the department servicing the board. To the extent
139.34practicable, the commissioner shall ensure that staff services are shared by the boards
139.35being serviced by the department. If necessary, a board may hire part-time, temporary
139.36employees to administer and grade examinations.

140.1    Sec. 21. Minnesota Statutes 2008, section 216B.1612, subdivision 2, is amended to
140.2read:
140.3    Subd. 2. Definitions. (a) The terms used in this section have the meanings given
140.4them in this subdivision.
140.5    (b) "C-BED tariff" or "tariff" means a community-based energy development tariff.
140.6    (c) "Qualifying owner" means:
140.7    (1) a Minnesota resident;
140.8    (2) a limited liability company that is organized under chapter 322B and that is made
140.9up of members who are Minnesota residents;
140.10    (3) a Minnesota nonprofit organization organized under chapter 317A;
140.11    (4) a Minnesota cooperative association organized under chapter 308A or 308B,
140.12including a rural electric cooperative association or a generation and transmission
140.13cooperative on behalf of and at the request of a member distribution utility;
140.14    (5) a Minnesota political subdivision or local government including, but not limited
140.15to, a municipal electric utility, or a municipal power agency on behalf of and at the request
140.16of a member distribution utility, the office of the commissioner of Iron Range resources
140.17and rehabilitation, a county, statutory or home rule charter city, town, school district, or
140.18public or private higher education institution or any other local or regional governmental
140.19organization such as a board, commission, or association; or
140.20    (6) a tribal council.
140.21    (d) "Net present value rate" means a rate equal to the net present value of the
140.22nominal payments to a project divided by the total expected energy production of the
140.23project over the life of its power purchase agreement.
140.24    (e) "Standard reliability criteria" means:
140.25    (1) can be safely integrated into and operated within the utility's grid without causing
140.26any adverse or unsafe consequences; and
140.27    (2) is consistent with the utility's resource needs as identified in its most recent
140.28resource plan submitted under section 216B.2422.
140.29    (f) "Renewable" refers to a technology listed in section 216B.1691, subdivision 1,
140.30paragraph (a).
140.31    (g) "Community-based energy development project" or "C-BED project" means a
140.32new renewable energy project that either as a stand-alone project or part of a partnership
140.33under subdivision 8:
140.34    (1) has no single qualifying owner owning more than 15 percent of a C-BED wind
140.35energy project unless: (i) the C-BED wind energy project consists of only one or two
141.1turbines; or (ii) the qualifying owner is a public entity listed under paragraph (c), clause
141.2(5), that is not a municipal utility;
141.3    (2) demonstrates that at least 51 percent of the gross revenues from a power
141.4purchase agreement over the life of the project will flow to qualifying owners and other
141.5local entities; and
141.6    (3) has a resolution of support adopted by the county board of each county in which
141.7the project is to be located, or in the case of a project located within the boundaries of a
141.8reservation, the tribal council for that reservation.
141.9EFFECTIVE DATE.This section is effective the day following final enactment.

141.10    Sec. 22. Minnesota Statutes 2008, section 298.2213, subdivision 5, is amended to read:
141.11    Subd. 5. Advisory committees. Before submission to the board of a proposal for a
141.12project for expenditure of money appropriated under this section, the commissioner of Iron
141.13Range resources and rehabilitation shall appoint a technical advisory committee consisting
141.14of at least seven persons who are knowledgeable in areas related to the objectives of
141.15the proposal. If the project involves investment in a scientific research proposal, at
141.16least four of the committee members must be knowledgeable in the specific scientific
141.17research area relating to the project. Members of the committees must be compensated as
141.18provided in section 15.059, subdivision 3. The board shall not act on a proposal until it
141.19has received the evaluation and recommendations of the technical advisory committee.
141.20Notwithstanding section 15.059, the committees do not expire.

141.21    Sec. 23. Minnesota Statutes 2008, section 298.2214, subdivision 1, is amended to read:
141.22    Subdivision 1. Creation of committee; purpose. A committee is created to
141.23advise the commissioner of Iron Range resources and rehabilitation on providing higher
141.24education programs in the taconite assistance area defined in section 273.1341. The
141.25committee is subject to section 15.059 but does not expire.

141.26    Sec. 24. Minnesota Statutes 2008, section 298.297, is amended to read:
141.27298.297 ADVISORY COMMITTEES.
141.28Before submission of a project to the board, the commissioner of Iron Range
141.29resources and rehabilitation shall appoint a technical advisory committee consisting of
141.30one or more persons who are knowledgeable in areas related to the objectives of the
141.31proposal. Members of the committees shall be compensated as provided in section 15.059,
141.32subdivision 3
. The board shall not act on a proposal until it has received the evaluation
142.1and recommendations of the technical advisory committee or until 15 days have elapsed
142.2since the proposal was transmitted to the advisory committee, whichever occurs first.
142.3Notwithstanding section 15.059, the committees do not expire.

142.4    Sec. 25. TRANSFER OF AUTHORITY AND STAFF.
142.5    Subdivision 1. Transfer of authority. (a) The responsibilities of the Board of
142.6Barber and Cosmetologist Examiners covered in Minnesota Statutes 2008, sections
142.7154.001 to 154.26, are transferred under Minnesota Statutes, section 15.039, to the Board
142.8of Barber Examiners.
142.9(b) The responsibilities of the Board of Barber and Cosmetologist Examiners
142.10covered in Minnesota Statutes 2008, sections 154.40 to 154.54, are transferred under
142.11Minnesota Statutes, section 15.039, to the Board of Cosmetologist Examiners.
142.12    Subd. 2. Rulemaking. Rulemaking authority pursuant to Minnesota Statutes
142.132008, sections 154.001 to 154.26, of the Board of Barber and Cosmetologist Examiners
142.14is transferred to the Board of Barber Examiners. Rulemaking authority pursuant to
142.15Minnesota Statutes 2008, sections 154.40 to 154.54, of the Board of Barber and
142.16Cosmetologist Examiners is transferred to the Board of Cosmetologist Examiners. All
142.17rules adopted by the Board of Barber and Cosmetologist Examiners in Minnesota Rules,
142.18chapter 2100, remain in effect and shall be enforced until amended or repealed according
142.19to law by the Board of Barber Examiners. All rules adopted by the Board of Barber
142.20and Cosmetologist Examiners in Minnesota Rules, chapters 2105 and 2110, remain in
142.21effect and shall be enforced until amended or repealed according to law by the Board of
142.22Cosmetologist Examiners.
142.23    Subd. 3. Transfer of board members. The board members serving in unexpired
142.24terms appointed to the Board of Barber and Cosmetologist Examiners pursuant to
142.25Minnesota Statutes 2008, section 154.001, paragraph (b), shall be appointed to serve the
142.26remainder of their terms as members of the Board of Barber Examiners, notwithstanding
142.27the requirements of Minnesota Statutes, section 154.001, subdivision 2. The board
142.28members serving in unexpired terms appointed to the Board of Barber and Cosmetologist
142.29Examiners pursuant to Minnesota Statutes 2008, section 154.001, paragraph (c), shall be
142.30appointed to serve the remainder of their terms as members of the Board of Cosmetologist
142.31Examiners, notwithstanding the requirements of Minnesota Statutes, section 155A.20.
142.32    Subd. 4. Transfer of staff. (a) The staff of the Board of Barber and Cosmetologist
142.33Examiners is transferred to the Board of Barber Examiners and the Board of Cosmetologist
142.34Examiners under Minnesota Statutes, section 15.039, according to the requirements of
142.35paragraph (b). In addition to any other protection, no employee shall suffer job loss,
143.1have a salary reduced, or have employment benefits reduced as a result of the transfer
143.2of authority from the Board of Barber and Cosmetologist Examiners recommended or
143.3mandated by this section. No action taken after January 1, 2010, shall be considered a
143.4result of the transfer of authority for the purposes of this section.
143.5(b) On or before June 1, 2009, the Board of Barber and Cosmetologist Examiners
143.6must designate to which board each employee will transfer to under paragraph (a), and the
143.7board must notify each affected employee of the designation in writing.
143.8    Subd. 5. Exemption from hiring freeze. Notwithstanding any law, policy, or
143.9executive order that restricts the hiring of new employees or institutes a hiring freeze, the
143.10Board of Barber Examiners and the Board of Cosmetologist Examiners may hire staff
143.11necessary to accomplish their statutory duties. This exemption expires on December
143.1231, 2009.
143.13EFFECTIVE DATE.This section is effective July 1, 2009, except that the
143.14requirements of subdivision 4, paragraph (b), are effective the day following final
143.15enactment.

143.16    Sec. 26. REVISOR'S INSTRUCTION.
143.17(a) The revisor of statutes shall delete "Board of Barber and Cosmetologist
143.18Examiners" and substitute "board" or "Board of Barber Examiners," as appropriate,
143.19wherever it appears in Minnesota Statutes, sections 154.001 to 154.26, and Minnesota
143.20Rules, chapter 2100.
143.21(b) The revisor of statutes shall delete "Board of Barber and Cosmetologist
143.22Examiners" and substitute "board" or "Board of Cosmetologist Examiners," as appropriate,
143.23wherever it appears in Minnesota Statutes, sections 154.40 to 154.54, and Minnesota
143.24Rules, chapters 2105 and 2110.
143.25(c) The revisor of statutes shall renumber each section of Minnesota Statutes listed
143.26in column A with the number listed in column B. The revisor shall also make necessary
143.27cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the
143.28renumbering.
143.29
Column A
Column B
143.30
154.40
155A.21
143.31
154.41
155A.22
143.32
154.42
155A.23
143.33
154.43
155A.24
143.34
154.44
155A.25
143.35
154.45
155A.26
143.36
154.46
155A.27
144.1
154.465
155A.28
144.2
154.47
155A.29
144.3
154.48
155A.30
144.4
154.49
155A.31
144.5
154.50
155A.32
144.6
154.51
155A.33
144.7
154.52
155A.34
144.8
154.53
155A.35
144.9
154.54
155A.36

144.10ARTICLE 7
144.11IRON RANGE RESOURCES

144.12    Section 1. Minnesota Statutes 2008, section 116J.424, is amended to read:
144.13116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
144.14CONTRIBUTION.
144.15The commissioner of the Iron Range Resources and Rehabilitation Board with
144.16approval of the board by at least seven Iron Range Resources and Rehabilitation Board
144.17members, shall provide an equal match for any loan or equity investment made for a
144.18facility located in the tax relief area defined in section 273.134, paragraph (b), by the
144.19Minnesota minerals 21st century fund created by section 116J.423. The match may be
144.20in the form of a loan or equity investment, notwithstanding whether the fund makes a
144.21loan or equity investment. The state shall not acquire an equity interest because of an
144.22equity investment or loan by the board and the board at its sole discretion shall decide
144.23what interest it acquires in a project. The commissioner of employment and economic
144.24development may require a commitment from the board to make the match prior to
144.25disbursing money from the fund.

144.26    Sec. 2. [298.217] IRON RANGE RESOURCES AND REHABILITATION;
144.27EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
144.28(a) Notwithstanding any law to the contrary, the commissioner of Iron Range
144.29resources and rehabilitation, in consultation with the commissioner of management and
144.30budget, may offer a targeted early separation incentive program for employees of the
144.31commissioner who have attained the age of 60 years or who have received credit for at
144.32least 30 years of allowable service under the provisions of chapter 352.
144.33(b) The early separation incentive program may include one or more of the following:
144.34(1) employer-paid postseparation health, medical, and dental insurance until age
144.3565; and
145.1(2) cash incentives that may, but are not required to be, used to purchase additional
145.2years of service credit through the Minnesota State Retirement System, to the extent that
145.3the purchases are otherwise authorized by law.
145.4(c) The commissioner of Iron Range resources and rehabilitation shall establish
145.5eligibility requirements for employees to receive an incentive.
145.6(d) The commissioner of Iron Range resources and rehabilitation, consistent with the
145.7established program provisions under paragraph (b), and with the eligibility requirements
145.8under paragraph (c), may designate specific programs or employees as eligible to be
145.9offered the incentive program.
145.10(e) Acceptance of the offered incentive must be voluntary on the part of the
145.11employee and must be in writing. The incentive may only be offered at the sole discretion
145.12of the commissioner of Iron Range resources and rehabilitation.
145.13(f) The cost of the incentive is payable solely by funds made available to the
145.14commissioner of Iron Range resources and rehabilitation by law, but only on prior approval
145.15of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.
145.16(g) This section and section 298.218 are repealed June 30, 2011.

145.17    Sec. 3. [298.218] APPLICATION OF OTHER LAWS.
145.18Unilateral implementation of section 298.217 by the commissioner of Iron Range
145.19resources and rehabilitation is not an unfair labor practice under chapter 179A.

145.20    Sec. 4. Minnesota Statutes 2008, section 298.22, subdivision 2, is amended to read:
145.21    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby
145.22created the Iron Range Resources and Rehabilitation Board, consisting of 13 members,
145.23five of whom are state senators appointed by the Subcommittee on Committees of the
145.24Rules Committee of the senate, and five of whom are representatives, appointed by the
145.25speaker of the house. The remaining members shall be appointed one each by the senate
145.26majority leader, the speaker of the house, and the governor and must be nonlegislators
145.27who reside in a taconite assistance area as defined in section 273.1341. The members shall
145.28be appointed in January of every odd-numbered year, except that the initial nonlegislator
145.29members shall be appointed by July 1, 1999, and shall serve until January of the next
145.30odd-numbered year. Vacancies on the board shall be filled in the same manner as the
145.31original members were chosen. At least a majority of the legislative members of the board
145.32shall be elected from state senatorial or legislative districts in which over 50 percent
145.33of the residents reside within a taconite assistance area as defined in section 273.1341.
145.34All expenditures and projects made by the commissioner of Iron Range resources and
146.1rehabilitation shall be consistent with the priorities established in subdivision 8 and shall
146.2first be submitted to the Iron Range Resources and Rehabilitation Board for approval of
146.3expenditures and projects for rehabilitation purposes as provided by this section, and
146.4the method, manner, and time of payment of all funds proposed to be disbursed, by a
146.5majority of the board of expenditures and projects for rehabilitation purposes as provided
146.6by this section, and the method, manner, and time of payment of all funds proposed to be
146.7disbursed shall be first approved or disapproved by the board at least seven Iron Range
146.8Resources and Rehabilitation Board members. The board shall biennially make its report
146.9to the governor and the legislature on or before November 15 of each even-numbered
146.10year. The expenses of the board shall be paid by the state from the funds raised pursuant to
146.11this section. Members of the board who are legislators may be reimbursed for expenses
146.12in the manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per
146.13diem payments during the interims between legislative sessions in the manner provided
146.14in section 3.099, subdivision 1. Members of the board who are not legislators may
146.15receive per diem payments and be reimbursed for expenses at the lowest rate provided
146.16for legislative members.
146.17EFFECTIVE DATE.This section is effective the day following final enactment.

146.18    Sec. 5. Minnesota Statutes 2008, section 298.22, subdivision 5a, is amended to read:
146.19    Subd. 5a. Forest trust. The commissioner, upon the affirmative vote of a majority
146.20of the members of the board, of at least seven Iron Range Resources and Rehabilitation
146.21Board members, may purchase forest lands in the taconite assistance area defined in under
146.22section 273.1341 with funds specifically authorized for the purchase. The acquired forest
146.23lands must be held in trust for the benefit of the citizens of the taconite assistance area
146.24as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed and
146.25developed for recreation and economic development purposes. The commissioner, upon
146.26the affirmative vote of a majority of the members of the board, of at least seven Iron Range
146.27Resources and Rehabilitation Board members, may sell forest lands purchased under this
146.28subdivision if the board finds that the sale advances the purposes of the trust. Proceeds
146.29derived from the management or sale of the lands and from the sale of timber or removal
146.30of gravel or other minerals from these forest lands shall be deposited into an Iron Range
146.31Miners' Memorial Forest account that is established within the state financial accounts.
146.32Funds may be expended from the account upon approval of a majority of the members
146.33of the board by at least seven Iron Range Resources and Rehabilitation Board members,
146.34to purchase, manage, administer, convey interests in, and improve the forest lands. By
146.35majority an affirmative vote of the members of the board, of at least seven Iron Range
147.1Resources and Rehabilitation Board members, money in the Iron Range Miners' Memorial
147.2Forest account may be transferred into the corpus of the Douglas J. Johnson economic
147.3protection trust fund established under sections 298.291 to 298.294. The property acquired
147.4under the authority granted by this subdivision and income derived from the property or
147.5the operation or management of the property are exempt from taxation by the state or its
147.6political subdivisions while held by the forest trust.

147.7    Sec. 6. Minnesota Statutes 2008, section 298.22, subdivision 6, is amended to read:
147.8    Subd. 6. Private entity participation. The board may acquire an equity interest in
147.9any project for which it provides funding. The commissioner may establish, participate in
147.10the management of, and dispose of the assets of charitable foundations, nonprofit limited
147.11liability companies, and nonprofit corporations associated with any project for which it
147.12provides funding, including specifically, but without limitation, a corporation within the
147.13meaning of section 317A.011, subdivision 6.

147.14    Sec. 7. Minnesota Statutes 2008, section 298.22, subdivision 7, is amended to read:
147.15    Subd. 7. Project area development authority. (a) In addition to the other powers
147.16granted in this section and other law and notwithstanding any limitations contained in
147.17subdivision 5, the commissioner, for purposes of fostering economic development and
147.18tourism within the Giants Ridge Recreation Area or the Ironworld Discovery Center area,
147.19may spend any money made available to the agency under section 298.28 to acquire real
147.20or personal property or interests therein by gift, purchase, or lease and may convey by
147.21lease, sale, or other means of conveyance or commitment any or all property interests
147.22owned or administered by the commissioner within such areas.
147.23(b) In furtherance of development of the Giants Ridge Recreation Area or the
147.24Ironworld Discovery Center area, the commissioner may establish and participate in
147.25charitable foundations, nonprofit limited liability companies, and nonprofit corporations,
147.26including a corporation within the meaning of section 317A.011, subdivision 6.
147.27(c) The term "Giants Ridge recreation area" refers to an economic development
147.28project area established by the commissioner in furtherance of the powers delegated in this
147.29section within St. Louis County in the western following portions of the town of White and
147.30in the eastern portion of the westerly, adjacent, unorganized township. city of Biwabik:
147.31Township 59 North, Range 15 West, Sections 7, 8, 17-20 and 29-32;
147.32Township 59 North, Range 16 West, Sections 12, 13, 24, 25, and 36;
147.33Township 58 North, Range 16 West, Section 1; and
147.34Township 58 North, Range 15 West, Sections 5 and 6.
148.1(d) The term "Ironworld Discovery Center area" refers to means an economic
148.2development and tourism promotion project area established by the commissioner in
148.3furtherance of the powers delegated in this section within St. Louis County in the south
148.4portion of the town of Balkan.

148.5    Sec. 8. Minnesota Statutes 2008, section 298.22, subdivision 8, is amended to read:
148.6    Subd. 8. Spending priority. In making or approving any expenditures on programs
148.7or projects, the commissioner and the board shall give the highest priority to programs
148.8and projects that target relief to those areas of the taconite assistance area as defined in
148.9section 273.1341, that have the largest percentages of job losses and population losses
148.10directly attributable to the economic downturn in the taconite industry since the 1980s.
148.11The commissioner and the board shall compare the 1980 population and employment
148.12figures with the 2000 population and employment figures, and shall specifically consider
148.13the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company,
148.14in making or approving expenditures consistent with this subdivision, as well as the areas
148.15of residence of persons who suffered job loss for which relief is to be targeted under this
148.16subdivision. The commissioner may lease, for a term not exceeding 50 years and upon
148.17the terms determined by the commissioner and approved by the board at least seven Iron
148.18Range Resources and Rehabilitation Board members, surface and mineral interests owned
148.19or acquired by the state of Minnesota acting by and through the office of the commissioner
148.20of Iron Range resources and rehabilitation within those portions of the taconite assistance
148.21area affected by the closure of the LTV Steel Mining Company facility near Hoyt Lakes.
148.22The payments and royalties from these leases must be deposited into the fund established
148.23in section 298.292. This subdivision supersedes any other conflicting provisions of law
148.24and does not preclude the commissioner and the board from making expenditures for
148.25programs and projects in other areas.
148.26EFFECTIVE DATE.This section is effective the day following final enactment.

148.27    Sec. 9. Minnesota Statutes 2008, section 298.22, subdivision 10, is amended to read:
148.28    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range
148.29resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or
148.30Giants Ridge Golf and Ski Resort without prior approval by a majority vote of the board at
148.31least seven Iron Range Resources and Rehabilitation Board members.
148.32EFFECTIVE DATE.This section is effective the day following final enactment.

149.1    Sec. 10. Minnesota Statutes 2008, section 298.22, subdivision 11, is amended to read:
149.2    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
149.3shall annually prepare a budget for operational expenditures, programs, and projects, and
149.4submit it to the Iron Range Resources and Rehabilitation Board and the governor for
149.5approval. After the budget is approved by the board at least seven Iron Range Resources
149.6and Rehabilitation Board members and the governor, the commissioner may spend money
149.7in accordance with the approved budget.
149.8EFFECTIVE DATE.This section is effective the day following final enactment.

149.9    Sec. 11. Minnesota Statutes 2008, section 298.221, is amended to read:
149.10298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
149.11(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
149.12pursuant to the terms of any contract entered into by the state under authority of section
149.13298.22 and any fees which may, in the discretion of the commissioner of Iron Range
149.14resources and rehabilitation, be charged in connection with any project pursuant to that
149.15section as amended, shall be deposited in the state treasury to the credit of the Iron Range
149.16Resources and Rehabilitation Board account in the special revenue fund and are hereby
149.17appropriated for the purposes of section 298.22.
149.18(b) Notwithstanding section 16A.013, merchandise may be accepted by the
149.19commissioner of the Iron Range Resources and Rehabilitation Board for payment of
149.20advertising contracts if the commissioner determines that the merchandise can be used
149.21for special event prizes or mementos at facilities operated by the board. Nothing in this
149.22paragraph authorizes the commissioner or a member of the board to receive merchandise
149.23for personal use.
149.24(c) All fees charged by the commissioner in connection with public use of the
149.25state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
149.26revenues derived by the commissioner from the operation or lease of those facilities
149.27and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
149.28Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
149.29Board account that is created within the state enterprise fund. All funds deposited in the
149.30enterprise fund account are appropriated to the commissioner to be expended, subject
149.31to approval of a majority of the board, by at least seven Iron Range Resources and
149.32Rehabilitation Board members, as follows:
149.33(1) to pay costs associated with the construction, equipping, operation, repair, or
149.34improvement of the Giants Ridge Recreation Area facilities or lands;
150.1(2) to pay principal, interest and associated bond issuance, reserve, and servicing
150.2costs associated with the financing of the facilities; and
150.3(3) to pay the costs of any other project authorized under section 298.22.
150.4EFFECTIVE DATE.This section is effective the day following final enactment.

150.5    Sec. 12. Minnesota Statutes 2008, section 298.2211, subdivision 3, is amended to read:
150.6    Subd. 3. Project approval. All projects authorized by this section shall be
150.7submitted by the commissioner to the Iron Range Resources and Rehabilitation Board,
150.8which shall recommend approval or disapproval or modification of the projects for
150.9approval by at least seven Iron Range Resources and Rehabilitation Board members.
150.10Prior to the commencement of a project involving the exercise by the commissioner of
150.11any authority of sections 469.174 to 469.179, the governing body of each municipality in
150.12which any part of the project is located and the county board of any county containing
150.13portions of the project not located in an incorporated area shall by majority vote approve
150.14or disapprove the project. Any project, as so approved by the board at least seven Iron
150.15Range Resources and Rehabilitation Board members and the applicable governing bodies,
150.16if any, together with detailed information concerning the project, its costs, the sources of
150.17its funding, and the amount of any bonded indebtedness to be incurred in connection
150.18with the project, shall be transmitted to the governor, who shall approve, disapprove, or
150.19return the proposal for additional consideration within 30 days of receipt. No project
150.20authorized under this section shall be undertaken, and no obligations shall be issued and
150.21no tax increments shall be expended for a project authorized under this section until the
150.22project has been approved by the governor.
150.23EFFECTIVE DATE.This section is effective the day following final enactment.

150.24    Sec. 13. Minnesota Statutes 2008, section 298.2213, subdivision 4, is amended to read:
150.25    Subd. 4. Project approval. The board and commissioner shall by August 1 each
150.26year prepare a list of projects to be funded from the money appropriated in this section
150.27with necessary supporting information including descriptions of the projects, plans, and
150.28cost estimates. A project must not be approved by the board unless it finds that:
150.29(1) the project will materially assist, directly or indirectly, the creation of additional
150.30long-term employment opportunities;
150.31(2) the prospective benefits of the expenditure exceed the anticipated costs; and
150.32(3) in the case of assistance to private enterprise, the project will serve a sound
150.33business purpose.
151.1 Each project must be approved by a majority of the at least seven Iron Range
151.2Resources and Rehabilitation Board members and the commissioner of Iron Range
151.3resources and rehabilitation. The list of projects must be submitted to the governor,
151.4who shall, by November 15 of each year, approve, disapprove, or return for further
151.5consideration, each project. The money for a project may be spent only upon approval of
151.6the project by the governor. The board may submit supplemental projects for approval at
151.7any time.
151.8EFFECTIVE DATE.This section is effective the day following final enactment.

151.9    Sec. 14. Minnesota Statutes 2008, section 298.2214, is amended by adding a
151.10subdivision to read:
151.11    Subd. 6. Per diem. Members of the committee may be reimbursed for expenses
151.12in the manner provided in section 298.22, subdivision 2.
151.13EFFECTIVE DATE.This section is effective the day following final enactment.

151.14    Sec. 15. Minnesota Statutes 2008, section 298.223, is amended to read:
151.15298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.
151.16    Subdivision 1. Creation; purposes. A fund called the taconite environmental
151.17protection fund is created for the purpose of reclaiming, restoring and enhancing those
151.18areas of northeast Minnesota located within the taconite assistance area defined in section
151.19273.1341 , that are adversely affected by the environmentally damaging operations
151.20involved in mining taconite and iron ore and producing iron ore concentrate and for the
151.21purpose of promoting the economic development of northeast Minnesota. The taconite
151.22environmental protection fund shall be used for the following purposes:
151.23(a) (1) to initiate investigations into matters the Iron Range Resources and
151.24Rehabilitation Board determines are in need of study and which will determine the
151.25environmental problems requiring remedial action;
151.26(b) (2) reclamation, restoration, or reforestation of mine lands not otherwise
151.27provided for by state law;
151.28(c) (3) local economic development projects but only if those projects are approved
151.29by the board, at least seven Iron Range Resources and Rehabilitation Board members,
151.30and public works, including construction of sewer and water systems located within the
151.31taconite assistance area defined in section 273.1341;
151.32(d) (4) monitoring of mineral industry related health problems among mining
151.33employees.;
152.1(5) local public works projects under section 298.227, paragraph (c); and
152.2(6) local public works projects as provided under this clause. The following amounts
152.3shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
152.4(i) .4651 cents per ton to the city of Aurora for street repair and renovation;
152.5(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
152.6improvements to the south side industrial site;
152.7(iii) .6460 cent per ton to the city of Buhl for street repair;
152.8(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
152.9(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
152.10upgrades;
152.11(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
152.12upgrades;
152.13(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer
152.14infrastructure;
152.15(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
152.16modifications for the miners' memorial;
152.17(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
152.18(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
152.19(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
152.20(xii) .6460 cent per ton to the town of Balkan for community center repairs;
152.21(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
152.22(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
152.23(xv) .5168 cent per ton to the city of Ely for reconstruction of 2cnd Avenue West;
152.24(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
152.25(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
152.26(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
152.27(xvix) .3230 cent per ton to Lake County for trail construction;
152.28(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
152.29Marais;
152.30(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
152.31improvements;
152.32(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
152.33(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
152.34improvements along Gayley Avenue;
152.35(xxiv) .3876 cent per ton to the city of Marble for construction of a city
152.36administration facility;
153.1(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
153.2community center;
153.3(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
153.4upgrades;
153.5(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
153.6along Depot Street;
153.7(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
153.8improvements;
153.9(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
153.10infrastructure upgrades at Pokegema Golf Course and Park Place;
153.11(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
153.12for 1st Avenue from River Road to 3rd Street SE; and
153.13(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
153.14at Highway 2 and County Road 62.
153.15    Subd. 2. Administration. (a) The taconite area environmental protection fund shall
153.16be administered by the commissioner of the Iron Range Resources and Rehabilitation
153.17Board. The commissioner shall by September 1 of each year submit to the board a list
153.18of projects to be funded from the taconite area environmental protection fund, with such
153.19supporting information including description of the projects, plans, and cost estimates as
153.20may be necessary.
153.21    (b) Each year no less than one-half of the amounts deposited into the taconite
153.22environmental protection fund must be used for public works projects, including
153.23construction of sewer and water systems, as specified under subdivision 1, paragraph (c)
153.24clause (3). The Iron Range Resources and Rehabilitation Board with a majority vote of
153.25the members, approval by at least seven Iron Range Resources and Rehabilitation Board
153.26members, may waive the requirements of this paragraph.
153.27    (c) Upon approval by a majority of the members of the Iron Range Resources and
153.28Rehabilitation Board, at least seven Iron Range Resources and Rehabilitation Board
153.29members, the list of projects approved under this subdivision shall be submitted to the
153.30governor by November 1 of each year. By December 1 of each year, the governor shall
153.31approve or disapprove, or return for further consideration, each project. Funds for a project
153.32may be expended only upon approval of the project by the board at least seven Iron Range
153.33Resources and Rehabilitation Board members, and the governor. The commissioner may
153.34submit supplemental projects to the board and governor for approval at any time.
153.35    Subd. 3. Appropriation. There is annually appropriated to the commissioner of Iron
153.36Range resources and rehabilitation taconite area environmental protection funds necessary
154.1to carry out approved projects and programs and the funds necessary for administration of
154.2this section. Annual administrative costs, not including detailed engineering expenses for
154.3the projects, shall not exceed five percent of the amount annually expended from the fund.
154.4Funds for the purposes of this section are provided by section 298.28, subdivision
154.511
, relating to the taconite area environmental protection fund.
154.6EFFECTIVE DATE.This section is effective the day following final enactment.

154.7    Sec. 16. Minnesota Statutes 2008, section 298.227, is amended to read:
154.8298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
154.9    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
154.10production and qualifying sales under section 298.28, subdivision 9a, shall be held by
154.11the Iron Range Resources and Rehabilitation Board in a separate taconite economic
154.12development fund for each taconite and direct reduced ore producer. Money from the
154.13fund for each producer shall be released by the commissioner after review by a joint
154.14committee consisting of an equal number of representatives of the salaried employees and
154.15the nonsalaried production and maintenance employees of that producer. The District 11
154.16director of the United States Steelworkers of America, on advice of each local employee
154.17president, shall select the employee members. In nonorganized operations, the employee
154.18committee shall be elected by the nonsalaried production and maintenance employees.
154.19The review must be completed no later than six months after the producer presents a
154.20proposal for expenditure of the funds to the committee. The funds held pursuant to this
154.21section may be released only for workforce development and associated public facility
154.22improvement, or for acquisition of plant and stationary mining equipment and facilities
154.23for the producer or for research and development in Minnesota on new mining, or
154.24taconite, iron, or steel production technology, but only if the producer provides a matching
154.25expenditure to be used for the same purpose of at least 50 percent of the distribution based
154.26on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals for
154.27expenditures of money from the fund beginning May 26, 2007, the commissioner may
154.28not release the funds before the next scheduled meeting of the board. If the board rejects
154.29a proposed expenditure is not approved by at least seven Iron Range Resources and
154.30Rehabilitation Board members, the funds must be deposited in the Taconite Environmental
154.31Protection Fund under sections 298.222 to 298.225. If a producer uses money which has
154.32been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
154.33equipment, or mining shovels, and the producer removes the piece of equipment from the
154.34taconite tax relief area defined in section 273.134 within ten years from the date of receipt
155.1of the money from the fund, a portion of the money granted from the fund must be repaid
155.2to the taconite economic development fund. The portion of the money to be repaid is 100
155.3percent of the grant if the equipment is removed from the taconite tax relief area within 12
155.4months after receipt of the money from the fund, declining by ten percent for each of the
155.5subsequent nine years during which the equipment remains within the taconite tax relief
155.6area. If a taconite production facility is sold after operations at the facility had ceased, any
155.7money remaining in the fund for the former producer may be released to the purchaser of
155.8the facility on the terms otherwise applicable to the former producer under this section. If
155.9a producer fails to provide matching funds for a proposed expenditure within six months
155.10after the commissioner approves release of the funds, the funds are available for release to
155.11another producer in proportion to the distribution provided and under the conditions of
155.12this section. Any portion of the fund which is not released by the commissioner within
155.13one year of its deposit in the fund shall be divided between the taconite environmental
155.14protection fund created in section 298.223 and the Douglas J. Johnson economic protection
155.15trust fund created in section 298.292 for placement in their respective special accounts.
155.16Two-thirds of the unreleased funds shall be distributed to the taconite environmental
155.17protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
155.18    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
155.19distributions and the review process, an amount equal to ten cents per taxable ton of
155.20production in 2007, for distribution in 2008 only, that would otherwise be distributed
155.21under paragraph (a), may be used for a loan for the cost of construction of a biomass
155.22energy facility. This amount must be deducted from the distribution under paragraph (a)
155.23for which a matching expenditure by the producer is not required. The granting of the loan
155.24is subject to approval by the Iron Range Resources and Rehabilitation Board at least seven
155.25Iron Range Resources and Rehabilitation Board members; interest must be payable on the
155.26loan at the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan
155.27and interest must be deposited in the northeast Minnesota economic development taconite
155.28environment protection fund established in section 298.2213 under sections 298.222 to
155.29298.225. If a loan is not made under this paragraph by July 1, 2009, the amount that
155.30had been made available for the loan under this paragraph must be transferred to the
155.31northeast Minnesota economic development taconite environment protection fund under
155.32sections 298.222 to 298.225. (iii) Money distributed in 2008 to the fund established
155.33under this section that exceeds ten cents per ton is available to qualifying producers under
155.34paragraph (a) on a pro rata basis.
156.1    If 2008 H.F. No. 1812 is enacted and includes a provision that amends this section
156.2in a manner that is different from the amendment in this section, the amendment in this
156.3section supersedes the amendment in 2008 H.F. No. 1812, notwithstanding section 645.26.
156.4(c) Repayment or transfer of money to the taconite environmental protection fund
156.5under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
156.6Rehabilitation Board for public works projects in house legislative districts in the same
156.7proportion as taxable tonnage of production in 2007 in each house legislative district, for
156.8distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
156.9in 2008. Not withstanding any other law to the contrary, expenditures under this paragraph
156.10do not require approval by the governor. For purposes of this paragraph, "house legislative
156.11districts" means the legislative districts in existence on the effective date of this section.
156.12EFFECTIVE DATE.This section is effective the day following final enactment.

156.13    Sec. 17. Minnesota Statutes 2008, section 298.28, subdivision 9d, is amended to read:
156.14    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
156.15be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
156.16an Iron Range higher education account that is hereby created, to be used for higher
156.17education programs conducted at educational institutions in the taconite assistance area
156.18defined in section 273.1341. The Iron Range Higher Education committee under section
156.19298.2214, and the Iron Range Resources and Rehabilitation Board by an affirmative vote
156.20of at least seven Iron Range Resources and Rehabilitation Board members, must approve
156.21all expenditures from the account.
156.22EFFECTIVE DATE.This section is effective the day following final enactment.

156.23    Sec. 18. Minnesota Statutes 2008, section 298.292, subdivision 2, is amended to read:
156.24    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
156.25fund may be used for the following purposes:
156.26    (1) to provide loans, loan guarantees, interest buy-downs and other forms of
156.27participation with private sources of financing, but a loan to a private enterprise shall be
156.28for a principal amount not to exceed one-half of the cost of the project for which financing
156.29is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
156.30lesser of eight percent or an interest rate three percentage points less than a full faith
156.31and credit obligation of the United States government of comparable maturity, at the
156.32time that the loan is approved;
157.1    (2) to fund reserve accounts established to secure the payment when due of the
157.2principal of and interest on bonds issued pursuant to section 298.2211;
157.3    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
157.4on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
157.5or retrofitting heating facilities in connection with district heating systems or systems
157.6utilizing alternative energy sources;
157.7    (4) to invest in a venture capital fund or enterprise that will provide capital to other
157.8entities that are engaging in, or that will engage in, projects or programs that have the
157.9purposes set forth in subdivision 1. No investments may be made in a venture capital fund
157.10or enterprise unless at least two other unrelated investors make investments of at least
157.11$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
157.12J. Johnson economic protection trust fund may not exceed the amount of the largest
157.13investment by an unrelated investor in the venture capital fund or enterprise. For purposes
157.14of this subdivision, an "unrelated investor" is a person or entity that is not related to
157.15the entity in which the investment is made or to any individual who owns more than 40
157.16percent of the value of the entity, in any of the following relationships: spouse, parent,
157.17child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
157.18the value of all interests in it. For purposes of determining the limitations under this
157.19clause, the amount of investments made by an investor other than the Douglas J. Johnson
157.20economic protection trust fund is the sum of all investments made in the venture capital
157.21fund or enterprise during the period beginning one year before the date of the investment
157.22by the Douglas J. Johnson economic protection trust fund; and
157.23    (5) to purchase forest land in the taconite assistance area defined in section 273.1341
157.24to be held and managed as a public trust for the benefit of the area for the purposes
157.25authorized in section 298.22, subdivision 5a. Property purchased under this section may
157.26be sold by the commissioner upon approval by a majority vote of the board by at least
157.27seven Iron Range Resources and Rehabilitation Board members. The net proceeds must
157.28be deposited in the trust fund for the purposes and uses of this section.
157.29    Money from the trust fund shall be expended only in or for the benefit of the taconite
157.30assistance area defined in section 273.1341.
157.31EFFECTIVE DATE.This section is effective the day following final enactment.

157.32    Sec. 19. [298.2931] TRANSFER OF FUNDS.
157.33The amount deposited in the Douglas J. Johnson Economic Protection Trust Fund
157.34in 2009 in repayment of a loan for the Mesabi Nugget, LLC project at Silver Bay shall
158.1be transferred to the taconite environmental protection fund and deposited in a special
158.2account to be used as provided under section 298.223, subdivision 1, clause (6).
158.3EFFECTIVE DATE.This section is effective the day following final enactment.

158.4    Sec. 20. Minnesota Statutes 2008, section 298.294, is amended to read:
158.5298.294 INVESTMENT OF FUND.
158.6(a) The trust fund established by section 298.292 shall be invested pursuant to law
158.7by the State Board of Investment and the net interest, dividends, and other earnings arising
158.8from the investments shall be transferred, except as provided in paragraph (b), on the first
158.9day of each month to the trust and shall be included and become part of the trust fund.
158.10The amounts transferred, including the interest, dividends, and other earnings earned
158.11prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
158.121983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
158.13commissioner of Iron Range resources and rehabilitation for deposit in a separate account
158.14for expenditure for the purposes set forth in section 298.292. Amounts appropriated
158.15pursuant to this section shall not cancel but shall remain available unless expended.
158.16(b) For fiscal years 2010 and 2011 only, $1,000,000 of the net interest, dividends,
158.17and other earnings under paragraph (a) shall be transferred to a special account. Funds in
158.18the special account are available for loans or grants to businesses, with priority given to
158.19businesses with 25 or fewer employees. Funds may be used for wage subsidies of up to $5
158.20per hour or other activities that will create additional jobs in the taconite assistance area
158.21under section 273.1341. Expenditures from the special account must be approved by at
158.22least seven Iron Range Resources and Rehabilitation Board members.
158.23(c) To qualify for a grant or loan, a business must be currently operating and have
158.24been operating for one year immediately prior to its application for a loan or grant, and its
158.25corporate headquarters must be located in the taconite assistance area.
158.26EFFECTIVE DATE.This section is effective the day following final enactment.

158.27    Sec. 21. Minnesota Statutes 2008, section 298.296, subdivision 2, is amended to read:
158.28    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
158.29on projects and for administration of the trust fund only from the net interest, earnings,
158.30and dividends arising from the investment of the trust at any time, including net interest,
158.31earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
158.32available for use in fiscal year 1983, except that any amount required to be paid out of the
158.33trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
159.1X, section 4, and to make school bond payments and payments to recipients of taconite
159.2production tax proceeds pursuant to section 298.225, may be taken from the corpus of
159.3the trust.
159.4    (b) Additionally, upon recommendation by the board, up to $13,000,000 from the
159.5corpus of the trust may be made available for use as provided in subdivision 4, and up to
159.6$10,000,000 from the corpus of the trust may be made available for use as provided in
159.7section 298.2961.
159.8    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
159.9on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
159.10made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
159.118, section 17, may be expended on projects. Funds may be expended for projects under
159.12this paragraph only if the project:
159.13    (1) is for the purposes established under section 298.292, subdivision 1, clause
159.14(1) or (2); and
159.15    (2) is approved by the board upon an affirmative vote of at least ten of its members.
159.16No money made available under this paragraph or paragraph (d) can be used for
159.17administrative or operating expenses of the Iron Range Resources and Rehabilitation
159.18Board or expenses relating to any facilities owned or operated by the board on May 18,
159.192002.
159.20    (d) Upon recommendation by a unanimous vote of all members of the board,
159.21amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
159.22expended on projects described in section 298.292, subdivision 1.
159.23    (e) Annual administrative costs, not including detailed engineering expenses for the
159.24projects, shall not exceed five percent of the net interest, dividends, and earnings arising
159.25from the trust in the preceding fiscal year.
159.26    (f) Principal and interest received in repayment of loans made pursuant to this
159.27section, and earnings on other investments made under section 298.292, subdivision 2,
159.28clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
159.29are appropriated to the board for the purposes of sections 298.291 to 298.298.
159.30    (g) Additionally, notwithstanding section 298.293, upon the affirmative vote
159.31of a majority of the members of the board, of at least seven Iron Range Resources and
159.32Rehabilitation Board members, money from the corpus of the trust may be expanded to
159.33purchase forest lands within the taconite assistance area as provided in sections 298.22,
159.34subdivision 5a, and 298.292, subdivision 2, clause (5).
159.35EFFECTIVE DATE.This section is effective the day following final enactment.

160.1    Sec. 22. Minnesota Statutes 2008, section 298.2961, is amended to read:
160.2298.2961 PRODUCER GRANTS.
160.3    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the Douglas
160.4J. Johnson economic protection trust fund to a special account in the taconite area
160.5environmental protection fund for grants to producers on a project-by-project basis as
160.6provided in this section.
160.7(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
160.8appropriated for grants to producers on a project-by-project basis as provided in this
160.9section.
160.10    Subd. 2. Projects; approval. (a) Projects funded must be for:
160.11    (1) environmentally unique reclamation projects; or
160.12    (2) pit or plant repairs, expansions, or modernizations other than for a value added
160.13iron products plant.
160.14    (b) To be proposed by the board, a project must be approved by at least eight Iron
160.15Range Resources and Rehabilitation Board members. The money for a project may
160.16be spent only upon approval of the project by the governor. The board may submit
160.17supplemental projects for approval at any time.
160.18    (c) The board may require that it receive an equity percentage in any project to
160.19which it contributes under this section.
160.20    Subd. 3. Redistribution. (a) If a taconite production facility is sold after operations
160.21at the facility had ceased, any money remaining in the taconite environmental fund for the
160.22former producer may be released to the purchaser of the facility on the terms otherwise
160.23applicable to the former producer under this section.
160.24(b) Any portion of the taconite environmental fund that is not released by the
160.25commissioner within three years of its deposit in the taconite environmental fund shall be
160.26divided between the taconite environmental protection fund created in section 298.223
160.27and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
160.28placement in their respective special accounts. Two-thirds of the unreleased funds must be
160.29distributed to the taconite environmental protection fund and one-third to the Douglas J.
160.30Johnson economic protection trust fund.
160.31    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
160.32under section 298.28, subdivision 9b, and to make grants or loans as provided in this
160.33subdivision. Any grant or loan made under this subdivision must be approved by a majority
160.34of the members of the Iron Range Resources and Rehabilitation Board, at least seven Iron
160.35Range Resources and Rehabilitation Board members, established under section 298.22.
161.1    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
161.2for improvements and repairs to the city's steam heating system.
161.3    (c) Distributions received in calendar year 2006 are allocated to a project of the
161.4public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
161.5generating plants to the use of biomass products, such as wood.
161.6    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
161.7be used for the East Two Rivers project in or near the city of Tower.
161.8    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
161.9must be paid to St. Louis County for deposit in its county road and bridge fund to be
161.10used for relocation of St. Louis County Road 715, commonly referred to as Pike River
161.11Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
161.12grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
161.13maintenance garage on Highway 135, further extending the lines to interconnect with the
161.14city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
161.15years are allocated for projects under section 298.223, subdivision 1.
161.16    Subd. 5. Public works and local economic development fund. For distributions in
161.172007 only, a special fund is established to receive 38.4 cents per ton that otherwise would
161.18be allocated under section 298.28, subdivision 6. The following amounts are allocated to
161.19St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
161.20    (1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for
161.21construction of a combined wastewater facility and notwithstanding section 298.28,
161.22subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
161.23by St. Louis County shall also be distributed to the recipient;
161.24    (2) six cents per ton to the city of Eveleth to redesign and design and construct
161.25improvements to renovate its water treatment facility;
161.26    (3) one cent per ton for the East Range Joint Powers Board to acquire land for and to
161.27design a central wastewater collection and treatment system;
161.28    (4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
161.29    (5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
161.30    (6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
161.31    (7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and
161.32Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment
161.33and Economic Development;
161.34    (8) 0.4 cents per ton to the city of Keewatin for a new city well;
161.35    (9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
161.36materials center;
162.1    (10) 0.9 cents per ton to Aitkin County Growth for an economic development
162.2project for peat harvesting;
162.3    (11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
162.4    (12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive
162.5plan;
162.6    (13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
162.7    (14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake
162.8Environmental Learning Center;
162.9    (15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
162.10    (16) 0.5 cents per ton to the Economic Development Authority of the city of Grand
162.11Rapids for planning for the North Central Research and Technology Laboratory;
162.12    (17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
162.13    (18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
162.14    (19) ten cents per ton to the commissioner of Iron Range Resources and
162.15Rehabilitation for deposit in a Highway 1 Corridor Account established by the
162.16commissioner, to be distributed by the commissioner to any of the cities of Babbitt, Cook,
162.17Ely, or Tower, for economic development projects approved by the Iron Range Resources
162.18and Rehabilitation Board at least seven Iron Range Resources and Rehabilitation Board
162.19members; notwithstanding section 298.28, subdivision 11, paragraph (a), or any other law,
162.20interest accrued on this money while held by St. Louis County or the commissioner
162.21shall also be distributed to the recipient.
162.22    Subd. 6. Renewable energy. For distributions in 2009 only, a special account is
162.23established in the taconite environmental protection fund to receive 15.5 cents per ton that
162.24otherwise would be allocated under section 298.28, subdivision 6. The funds are available
162.25for cooperative projects between the Iron Range Resources and Rehabilitation Board and
162.26local governments for renewable energy initiatives.
162.27EFFECTIVE DATE.This section is effective the day following final enactment.

162.28ARTICLE 8
162.29HOUSING FINANCE AGENCY

162.30    Section 1. Minnesota Statutes 2008, section 327C.03, is amended by adding a
162.31subdivision to read:
162.32    Subd. 6. Payment to the Minnesota manufactured home relocation trust fund.
162.33In the event a park owner has been assessed under section 327C.095, subdivision 12,
162.34paragraph (c), the park owner may collect the $12 annual payment required by section
163.1327C.095, subdivision 12, for participation in the relocation trust fund, as a lump sum
163.2or, along with monthly lot rent, a fee of no more than $1 per month to cover the cost of
163.3participating in the relocation trust fund. The $1 fee must be separately itemized and
163.4clearly labeled "Minnesota manufactured home relocation trust fund."

163.5    Sec. 2. Minnesota Statutes 2008, section 327C.095, subdivision 12, is amended to read:
163.6    Subd. 12. Payment to the Minnesota manufactured home relocation trust fund.
163.7    (a) If a manufactured home owner is required to move due to the conversion of all or a
163.8portion of a manufactured home park to another use, the closure of a park, or cessation
163.9of use of the land as a manufactured home park, the manufactured park owner shall,
163.10upon the change in use, pay to the commissioner of finance for deposit in the Minnesota
163.11manufactured home relocation trust fund under section 462A.35, the lesser amount of the
163.12actual costs of moving or purchasing the manufactured home approved by the neutral
163.13third party and paid by the Minnesota Housing Finance Agency under subdivision 13,
163.14paragraph (a) or (e), or $3,250 for each single section manufactured home, and $6,000 for
163.15each multisection manufactured home, for which a manufactured home owner has made
163.16application for payment of relocation costs under subdivision 13, paragraph (c). The
163.17manufactured home park owner shall make payments required under this section to the
163.18Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
163.19from the neutral third party.
163.20    (b) A manufactured home park owner is not required to make the payment prescribed
163.21under paragraph (a), nor is a manufactured home owner entitled to compensation under
163.22subdivision 13, paragraph (a) or (e), if:
163.23    (1) the manufactured home park owner relocates the manufactured home owner to
163.24another space in the manufactured home park or to another manufactured home park at
163.25the park owner's expense;
163.26    (2) the manufactured home owner is vacating the premises and has informed the
163.27manufactured home park owner or manager of this prior to the mailing date of the closure
163.28statement under subdivision 1;
163.29    (3) a manufactured home owner has abandoned the manufactured home, or the
163.30manufactured home owner is not current on the monthly lot rental, personal property
163.31taxes, or has failed to pay the annual $12 payments to the Minnesota manufactured home
163.32relocation trust fund when due;
163.33    (4) the manufactured home owner has a pending eviction action for nonpayment of
163.34lot rental amount under section 327C.09, which was filed against the manufactured home
164.1owner prior to the mailing date of the closure statement under subdivision 1, and the writ
164.2of recovery has been ordered by the district court;
164.3    (5) the conversion of all or a portion of a manufactured home park to another use,
164.4the closure of a park, or cessation of use of the land as a manufactured home park is the
164.5result of a taking or exercise of the power of eminent domain by a governmental entity
164.6or public utility; or
164.7    (6) the owner of the manufactured home is not a resident of the manufactured home
164.8park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
164.9is a resident, but came to reside in the manufactured home park after the mailing date of
164.10the closure statement under subdivision 1.
164.11    (c) Owners of manufactured homes who rent lots in a manufactured home park shall
164.12make annual payments to the park owner, to be deposited in the Minnesota manufactured
164.13home relocation trust fund under section 462A.35, in the amount of $12 per year, per
164.14manufactured home, payable on August 15 of each year. On or before July 15 of each
164.15year, the commissioner of finance shall prepare and post on the department's Web site a
164.16generic invoice and cover letter explaining the purpose of the Minnesota manufactured
164.17home relocation trust fund, the obligation of each manufactured home owner to make an
164.18annual $12 payment into the fund, the due date, and the need to pay to the park owner for
164.19collection, and a warning, in 14-point font, that if the annual payments are not made when
164.20due, the manufactured home owner will not be eligible for compensation from the fund if
164.21the manufactured home park closes. The park owner shall receive, record, and commingle
164.22the payments and forward the payments to the commissioner of finance by September 15
164.23of each year, with a summary by the park owner, certifying the name, address, and payment
164.24amount of each remitter, and noting the names and address of manufactured home owners
164.25who did not pay the $12 annual payment, sent to both the commissioner of finance and the
164.26commissioner of the Minnesota Housing Finance Agency. The commissioner of finance
164.27shall deposit the payments in the Minnesota manufactured home relocation trust fund.
164.28The commissioner of finance shall annually assess each manufactured home park owner
164.29by mail the total amount of $12 for each licensed lot in their park, payable on or before
164.30September 15 of each year. The commissioner of finance shall deposit the payments in the
164.31Minnesota manufactured home relocation trust fund. On or before July 15 of each year,
164.32the commissioner of finance shall prepare and distribute to park owners a letter explaining
164.33the collection, an invoice for all licensed lots, and a sample form for the park owners to
164.34collect information on which park residents have been accounted for. The park owner may
164.35recoup the cost of the $12 assessment as a lump sum or as a monthly fee of no more than
164.36$1 collected from park residents together with monthly lot rent as provided in section
165.1327C.03, subdivision 6. Park owners may adjust payment for lots in their park that are
165.2vacant or otherwise not eligible for contribution to the trust fund under section 327C.095,
165.3subdivision 12, paragraph (b), and deduct from the assessment, accordingly.
165.4    (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
165.5the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
165.6in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
165.7attorney fees, court costs, and disbursements.

165.8    Sec. 3. Minnesota Statutes 2008, section 327C.095, subdivision 13, is amended to read:
165.9    Subd. 13. Change in use, relocation expenses; payments by park owner. (a)
165.10If a manufactured home owner is required to relocate due to the conversion of all or a
165.11portion of a manufactured home park to another use, the closure of a manufactured home
165.12park, or cessation of use of the land as a manufactured home park under subdivision
165.131, and the manufactured home owner complies with the requirements of this section,
165.14the manufactured home owner is entitled to payment from the Minnesota manufactured
165.15home relocation trust fund equal to the manufactured home owner's actual relocation
165.16costs for relocating the manufactured home to a new location within a 25-mile radius
165.17of the park that is being closed, up to a maximum of $4,000 for a single-section and
165.18$8,000 for a multisection manufactured home. The actual relocation costs must include
165.19the reasonable cost of taking down, moving, and setting up the manufactured home,
165.20including equipment rental, utility connection and disconnection charges, minor repairs,
165.21modifications necessary for transportation of the home, necessary moving permits and
165.22insurance, moving costs for any appurtenances, which meet applicable local, state, and
165.23federal building and construction codes.
165.24    (b) A manufactured home owner is not entitled to compensation under paragraph (a)
165.25if the manufactured home park owner is not required to make a payment to the Minnesota
165.26manufactured home relocation trust fund under subdivision 12, paragraph (b).
165.27    (c) Except as provided in paragraph (e), in order to obtain payment from the
165.28Minnesota manufactured home relocation trust fund, the manufactured home owner shall
165.29submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy
165.30to the park owner, an application for payment, which includes:
165.31    (1) a copy of the closure statement under subdivision 1;
165.32    (2) a copy of the contract with a moving or towing contractor, which includes the
165.33relocation costs for relocating the manufactured home;
165.34    (3) a statement with supporting materials of any additional relocation costs as
165.35outlined in subdivision 1;
166.1    (4) a statement certifying that none of the exceptions to receipt of compensation
166.2under subdivision 12, paragraph (b), apply to the manufactured home owner;
166.3    (5) a statement from the manufactured park owner that the lot rental is current
166.4and that the annual $12 payments to the Minnesota manufactured home relocation trust
166.5fund have been paid when due; and
166.6    (6) a statement from the county where the manufactured home is located certifying
166.7that personal property taxes for the manufactured home are paid through the end of that
166.8year.
166.9    (d) If the neutral third party has acted reasonably and does not approve or deny
166.10payment within 45 days after receipt of the information set forth in paragraph (c), the
166.11payment is deemed approved. Upon approval and request by the neutral third party,
166.12the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50
166.13percent of the contract price payable to the mover and towing contractor for relocating
166.14the manufactured home in the amount of the actual relocation cost, plus a check to the
166.15home owner for additional certified costs associated with third-party vendors, that were
166.16necessary in relocating the manufactured home. The moving or towing contractor shall
166.17receive 50 percent upon execution of the contract and 50 percent upon completion of
166.18the relocation and approval by the manufactured home owner. The moving or towing
166.19contractor may not apply the funds to any other purpose other than relocation of the
166.20manufactured home as provided in the contract. A copy of the approval must be forwarded
166.21by the neutral third party to the park owner with an invoice for payment of the amount
166.22specified in subdivision 12, paragraph (a).
166.23    (e) In lieu of collecting a relocation payment from the Minnesota manufactured
166.24home relocation trust fund under paragraph (a), the manufactured home owner may collect
166.25an amount from the fund after reasonable efforts to relocate the manufactured home
166.26have failed due to the age or condition of the manufactured home, or because there are
166.27no manufactured home parks willing or able to accept the manufactured home within a
166.2825-mile radius. A manufactured home owner may tender title of the manufactured home
166.29in the manufactured home park to the manufactured home park owner, and collect an
166.30amount to be determined by an independent appraisal. The appraiser must be agreed to
166.31by both the manufactured home park owner and the manufactured home owner. The
166.32amount that may be reimbursed under the fund is a maximum of $5,000 for a single
166.33section and $9,000 for a multisection manufactured home. The manufactured home
166.34owner shall deliver to the manufactured home park owner the current certificate of title
166.35to the manufactured home duly endorsed by the owner of record, and valid releases of
166.36all liens shown on the certificate of title, and a statement from the county where the
167.1manufactured home is located evidencing that the personal property taxes have been paid.
167.2The manufactured home owner's application for funds under this paragraph must include a
167.3document certifying that the manufactured home cannot be relocated, that the lot rental is
167.4current, that the annual $12 payments to the Minnesota manufactured home relocation
167.5trust fund have been paid when due, that the manufactured home owner has chosen to
167.6tender title under this section, and that the park owner agrees to make a payment to the
167.7commissioner of finance in the amount established in subdivision 12, paragraph (a), less
167.8any documented costs submitted to the neutral third party, required for demolition and
167.9removal of the home, and any debris or refuse left on the lot, not to exceed $1,000. The
167.10manufactured home owner must also provide a copy of the certificate of title endorsed by
167.11the owner of record, and certify to the neutral third party, with a copy to the park owner,
167.12that none of the exceptions to receipt of compensation under subdivision 12, paragraph
167.13(b), clauses (1) to (6), apply to the manufactured home owner, and that the home owner
167.14will vacate the home within 60 days after receipt of payment or the date of park closure,
167.15whichever is earlier, provided that the monthly lot rent is kept current.
167.16    (f) The Minnesota Housing Finance Agency must make a determination of the
167.17amount of payment a manufactured home owner would have been entitled to under a local
167.18ordinance in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured
167.19home owner's compensation for relocation costs from the fund under section 462A.35, is
167.20the greater of the amount provided under this subdivision, or the amount under the local
167.21ordinance in effect on May 26, 2007, that is applicable to the manufactured home owner.
167.22Nothing in this paragraph is intended to increase the liability of the park owner.
167.23    (g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall
167.24be liable to any person for recovery if the funds in the Minnesota manufactured home
167.25relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing
167.26Finance Agency shall keep a record of the time and date of its approval of payment to a
167.27claimant.
167.28    (h) The agency shall report to the chairs of the senate Finance Committee and
167.29house of representatives Ways and Means Committee by January 15 of each year on
167.30the Minnesota manufactured home relocation trust fund, including the account balance,
167.31payments to claimants, the amount of any advances to the fund, and the amount of any
167.32insufficiencies encountered during the previous calendar year, and any administrative
167.33charges or expenses deducted from the trust fund balance. If sufficient funds become
167.34available, the Minnesota Housing Finance Agency shall pay the manufactured home
167.35owner whose unpaid claim is the earliest by time and date of approval.

168.1    Sec. 4. Minnesota Statutes 2008, section 462A.05, subdivision 14, is amended to read:
168.2    Subd. 14. Rehabilitation loans. It may agree to purchase, make, or otherwise
168.3participate in the making, and may enter into commitments for the purchase, making, or
168.4participation in the making, of eligible loans for rehabilitation, with terms and conditions
168.5as the agency deems advisable, to persons and families of low and moderate income, and
168.6to owners of existing residential housing for occupancy by such persons and families,
168.7for the rehabilitation of existing residential housing owned by them. The loans may be
168.8insured or uninsured and may be made with security, or may be unsecured, as the agency
168.9deems advisable. The loans may be in addition to or in combination with long-term
168.10eligible mortgage loans under subdivision 3. They may be made in amounts sufficient
168.11to refinance existing indebtedness secured by the property, if refinancing is determined
168.12by the agency to be necessary to permit the owner to meet the owner's housing cost
168.13without expending an unreasonable portion of the owner's income thereon. No loan for
168.14rehabilitation shall be made unless the agency determines that the loan will be used
168.15primarily to make the housing more desirable to live in, to increase the market value of the
168.16housing, for compliance with state, county or municipal building, housing maintenance,
168.17fire, health or similar codes and standards applicable to housing, or to accomplish energy
168.18conservation related improvements. In unincorporated areas and municipalities not
168.19having codes and standards, the agency may, solely for the purpose of administering
168.20the provisions of this chapter, establish codes and standards. Except for accessibility
168.21improvements under this subdivision and subdivisions 14a and 24, clause (1), no secured
168.22loan for rehabilitation of any owner-occupied property shall be made in an amount which,
168.23with all other existing indebtedness secured by the property, would exceed 110 percent
168.24of its market value, as determined by the agency. No loan under this subdivision for the
168.25rehabilitation of owner-occupied housing shall be denied solely because the loan will not
168.26be used for placing the owner-occupied residential housing in full compliance with all
168.27state, county, or municipal building, housing maintenance, fire, health, or similar codes
168.28and standards applicable to housing. Rehabilitation loans shall be made only when the
168.29agency determines that financing is not otherwise available, in whole or in part, from
168.30private lenders upon equivalent terms and conditions. Accessibility rehabilitation loans
168.31authorized under this subdivision may be made to eligible persons and families without
168.32limitations relating to the maximum incomes of the borrowers if:
168.33(1) the borrower or a member of the borrower's family requires a level of care
168.34provided in a hospital, skilled nursing facility, or intermediate care facility for persons
168.35with developmental disabilities;
168.36(2) home care is appropriate; and
169.1(3) the improvement will enable the borrower or a member of the borrower's family
169.2to reside in the housing.
169.3The agency may waive any requirement that the housing units in a residential housing
169.4development be rented to persons of low and moderate income if the development consists
169.5of four or less dwelling units, one of which is occupied by the owner.

169.6    Sec. 5. Minnesota Statutes 2008, section 462A.05, subdivision 14a, is amended to read:
169.7    Subd. 14a. Rehabilitation loans; existing owner occupied residential housing.
169.8It may make loans to persons and families of low and moderate income to rehabilitate
169.9or to assist in rehabilitating existing residential housing owned and occupied by those
169.10persons or families. No loan shall be made unless the agency determines that the loan
169.11will be used primarily for rehabilitation work necessary for health or safety, essential
169.12accessibility improvements, or to improve the energy efficiency of the dwelling. No
169.13loan for rehabilitation of owner occupied residential housing shall be denied solely
169.14because the loan will not be used for placing the residential housing in full compliance
169.15with all state, county or municipal building, housing maintenance, fire, health or similar
169.16codes and standards applicable to housing. The amount of any loan shall not exceed the
169.17lesser of (a) a maximum loan amount determined under rules adopted by the agency
169.18not to exceed $20,000 $27,000, or (b) the actual cost of the work performed, or (c) that
169.19portion of the cost of rehabilitation which the agency determines cannot otherwise be
169.20paid by the person or family without the expenditure of an unreasonable portion of the
169.21income of the person or family. Loans made in whole or in part with federal funds may
169.22exceed the maximum loan amount to the extent necessary to comply with federal lead
169.23abatement requirements prescribed by the funding source. In making loans, the agency
169.24shall determine the circumstances under which and the terms and conditions under which
169.25all or any portion of the loan will be repaid and shall determine the appropriate security
169.26for the repayment of the loan. Loans pursuant to this subdivision may be made with
169.27or without interest or periodic payments.

169.28    Sec. 6. Minnesota Statutes 2008, section 469.201, subdivision 2, is amended to read:
169.29    Subd. 2. City. "City" means a city of the first class as defined in section 410.01
169.30and, a city of the second class that is designated as an economically depressed area by
169.31the United States Department of Commerce, and a statutory or home rule charter city,
169.32town, or township. For each city, a port authority, housing and redevelopment authority,
169.33or other agency or instrumentality, the jurisdiction of which is the territory of the city, is
169.34included within the meaning of city.

170.1    Sec. 7. Minnesota Statutes 2008, section 469.201, subdivision 4, is amended to read:
170.2    Subd. 4. City matching money. (a) "City matching money" means the money of a
170.3city specified in a targeted revitalization program. The sources of city matching money
170.4may include:
170.5(1) money from the general fund or a special fund of a city used to implement a
170.6targeted revitalization program;
170.7(2) money paid or repaid to a city from the proceeds of a grant that a city has
170.8received from the federal government, a profit or nonprofit corporation, or another entity
170.9or individual, that is to be used to implement a targeted revitalization program;
170.10(3) tax increments received by a city under sections 469.174 to 469.179 or other law,
170.11if eligible, to be spent in the targeted neighborhood community;
170.12(4) the greater of the fair market value or the cost to the city of acquiring land,
170.13buildings, equipment, or other real or personal property that a city contributes, grants,
170.14leases, or loans to a profit or nonprofit corporation or other entity or individual, in
170.15connection with the implementation of a targeted revitalization program;
170.16(5) city money to be used to acquire, install, reinstall, repair, or improve the
170.17infrastructure facilities of a targeted neighborhood community;
170.18(6) money contributed by a city to pay issuance costs, fund bond reserves, or to
170.19otherwise provide financial support for revenue bonds or obligations issued by a city for a
170.20project or program related to the implementation of a targeted revitalization program;
170.21(7) money derived from fees received by a city in connection with its community
170.22development activities that are to be used in implementing a targeted revitalization
170.23program;
170.24(8) money derived from the apportionment to the city under section 162.14 or by
170.25special law, and expended in a targeted neighborhood community for an activity related to
170.26the targeted revitalization program;
170.27(9) administrative expenses of the city that are incurred in connection with the
170.28planning, implementation, or reporting requirements of sections 469.201 to 469.207.
170.29(b) City matching money does not include:
170.30(1) city money used to provide a service or to exercise a function that is ordinarily
170.31provided throughout the city, unless an increased level of the service or function is
170.32to be provided in a targeted neighborhood community in accordance with a targeted
170.33revitalization program;
170.34(2) the proceeds of bonds issued by the city under chapter 462C or 469 and payable
170.35solely from repayments made by one or more nongovernmental persons in consideration
170.36for the financing provided by the bonds; or
171.1(3) money given by the state to fund any part of the targeted revitalization program.

171.2    Sec. 8. Minnesota Statutes 2008, section 469.201, subdivision 6, is amended to read:
171.3    Subd. 6. Housing activities. "Housing activities" include any work or undertaking
171.4to provide housing and related services and amenities primarily for persons and families of
171.5low or moderate income. This work or undertaking may include the planning of buildings
171.6and improvements; the acquisition of real property, which may be needed immediately
171.7to address vacancies, foreclosures, and preservation of housing now or in the future for
171.8housing purposes and the; demolition of any existing improvements; activities to address
171.9lead abatement, energy efficiencies, or other activities related to the health of a building;
171.10and the construction, reconstruction, alteration, and repair of new and existing buildings.
171.11Housing activities also include the provision of a housing rehabilitation and energy
171.12improvement loan and grant program with respect to any residential property located
171.13within the targeted neighborhood community, the cost of relocation relating to acquiring
171.14property for housing activities, and programs authorized by chapter 462C.

171.15    Sec. 9. Minnesota Statutes 2008, section 469.201, subdivision 7, is amended to read:
171.16    Subd. 7. Lost unit. "Lost unit" means a rental housing unit that has been vacant
171.17for more than six months or has been condemned for code violations, that is lost as a
171.18result of revitalization activities because it is demolished, converted to an owner-occupied
171.19unit that is not a cooperative, or converted to a nonresidential use, or because the gross
171.20rent to be charged exceeds 125 percent of the gross rent charged for the unit six months
171.21before the start of rehabilitation.

171.22    Sec. 10. Minnesota Statutes 2008, section 469.201, subdivision 10, is amended to read:
171.23    Subd. 10. Targeted neighborhood community. "Targeted neighborhood
171.24community" means an area including one or more census tracts, as determined and
171.25measured by the Bureau of Census of the United States Department of Commerce, that
171.26a city council determines in a resolution adopted under section 469.202, subdivision 1,
171.27meets the criteria of section 469.202, subdivision 2, and any additional area designated
171.28under section 469.202, subdivision 3.

171.29    Sec. 11. Minnesota Statutes 2008, section 469.201, subdivision 11, is amended to read:
171.30    Subd. 11. Targeted neighborhood community money. "Targeted neighborhood
171.31community money" means the money designated in the targeted revitalization program to
171.32be used to implement the targeted revitalization program.

172.1    Sec. 12. Minnesota Statutes 2008, section 469.201, subdivision 12, is amended to read:
172.2    Subd. 12. Targeted neighborhood community revitalization and financing
172.3program. "Targeted neighborhood community revitalization and financing program,"
172.4"revitalization program," or "program" means the targeted neighborhood community
172.5revitalization and financing program adopted in accordance with section 469.203.

172.6    Sec. 13. Minnesota Statutes 2008, section 469.202, is amended to read:
172.7469.202 DESIGNATION OF TARGETED NEIGHBORHOODS
172.8COMMUNITIES.
172.9    Subdivision 1. City authority. A city may by resolution designate a targeted
172.10neighborhoods community within its borders after adopting detailed findings that the
172.11designated neighborhoods communities meet the eligibility requirements in subdivision 2
172.12or 3.
172.13    Subd. 2. Eligibility requirements for targeted neighborhoods communities. An
172.14area within a city is eligible for designation as a targeted neighborhood community if the
172.15area meets two three of the following three four criteria:
172.16(a) The area had an unemployment rate that was twice the unemployment rate for
172.17the Minneapolis and Saint Paul standard metropolitan statistical area as determined by
172.18the most recent federal decennial census.
172.19(b) The median household income in the area was no more than half 80 percent of
172.20 the median household income for the Minneapolis and Saint Paul standard metropolitan
172.21statistical area as determined by the most recent federal decennial census.
172.22(c) The area is characterized by residential dwelling units in need of substantial
172.23rehabilitation. An area qualifies under this paragraph if 25 percent or more of the
172.24residential dwelling units are in substandard condition as determined by the city, or if 70
172.25percent or more of the residential dwelling units in the area were built before 1940 1960 as
172.26determined by the most recent federal decennial census.
172.27(d) The area is characterized by having a disproportionate number of vacant
172.28residential buildings and mortgage foreclosures. An area qualifies under this paragraph
172.29if it has either:
172.30(1) a foreclosure rate of at least 1.5 percent in 2008; or
172.31(2) a foreclosure rate in 2008 in the city or in a zip code area of the city that is at
172.32least 50 percent higher than the average foreclosure rate in the metropolitan area, as
172.33defined in section 473.121, subdivision 2. For purposes of this paragraph, "foreclosure
172.34rate" means the number of foreclosures, as indicated by sheriff sales records, divided by
172.35the number of households in the city in 2007.
173.1    Subd. 3. Additional area eligible for inclusion in targeted neighborhood
173.2community. (a) A city may add to the area designated as a targeted neighborhood
173.3community under subdivision 2 additional area extending up to four contiguous city
173.4blocks in all directions from the designated targeted neighborhood community. For the
173.5purpose of this subdivision, "city block" has the meaning determined by the city; or
173.6(b) The city may enlarge the targeted neighborhood community to include portions
173.7of a census tract that is contiguous to a targeted neighborhood community, provided that
173.8the city council first determines the additional area satisfies two three of the three four
173.9criteria in subdivision 2.

173.10    Sec. 14. Minnesota Statutes 2008, section 469.203, subdivision 1, is amended to read:
173.11    Subdivision 1. Requirements. For each targeted neighborhood community for
173.12which a city requests state financial assistance under section 469.204, the city must
173.13prepare a comprehensive revitalization and financing program that includes the following:
173.14(1) the revitalization objectives of the city for the targeted neighborhood community;
173.15(2) the specific activities or means by which the city intends to pursue and implement
173.16the revitalization objectives;
173.17(3) the extent to which the activities identified in clause (2) will benefit low-
173.18and moderate-income families, will alleviate the blighted condition of the targeted
173.19neighborhood community, or will otherwise assist in the revitalization of the targeted
173.20neighborhood community;
173.21(4) a statement of the intended outcomes to be achieved by implementation of the
173.22targeted revitalization program, how the outcomes will be measured both qualitatively and
173.23quantitatively, and the estimated time over which they will occur; and
173.24(5) a financing program and budget that identifies the financial resources necessary
173.25to implement the targeted revitalization program, including:
173.26(i) the estimated total cost to implement the targeted revitalization program;
173.27(ii) the estimated cost to implement each activity in the revitalization program
173.28identified in clause (2);
173.29(iii) the estimated amount of financial resources that will be available from all
173.30sources other than from the appropriation available under section 469.204 to implement
173.31the revitalization program, including the amount of private investment expected to result
173.32from the use of public money in the targeted neighborhood community;
173.33(iv) the estimated amount of the appropriation available under section 469.204 that
173.34will be necessary to implement the targeted revitalization program;
174.1(v) a description of the activities identified in the targeted revitalization program for
174.2which the state appropriation will be committed or spent; and
174.3(vi) a statement of how the city intends to meet the requirement for a financial
174.4contribution from city matching money in accordance with section 469.204, subdivision 3.

174.5    Sec. 15. Minnesota Statutes 2008, section 469.203, subdivision 2, is amended to read:
174.6    Subd. 2. Targeted neighborhood community participation in preparing
174.7revitalization program. A city requesting state financial assistance under section
174.8469.204 shall adopt follow a process to involve the residents of targeted neighborhoods
174.9communities in the development, drafting, and implementation of the targeted
174.10revitalization program. The process shall include the use of a citizen participation
174.11process established by the city. A description of the process must be included in the
174.12program. The process to involve residents of the targeted neighborhood community
174.13must include at least one public hearing. The city of Minneapolis shall establish the
174.14community-based process as outlined in subdivision 3. The city of St. Paul shall use
174.15the same community-based process the city used in planning, developing, drafting, and
174.16implementing the revitalization program required under Laws 1987, chapter 386, article 6,
174.17section 6. The city of Duluth shall use the same citizen participation process the city used
174.18in planning, developing, and implementing the federal funded community development
174.19program meeting in the targeted community.

174.20    Sec. 16. Minnesota Statutes 2008, section 469.203, subdivision 4, is amended to read:
174.21    Subd. 4. City approval of program. (a) Before or after adoption of a revitalization
174.22program under paragraph (b), the city must submit a preliminary program to the
174.23commissioner and the Minnesota Housing Finance Agency for their comments. The city
174.24may not adopt the revitalization program until comments have been received from the
174.25state agencies or 30 days have elapsed without response after the program was sent to
174.26them. Comments received by the city from the state agencies within the 30-day period 30
174.27days after submission of the preliminary program must be responded to in writing by the
174.28city before adoption of the program by the city.
174.29(b) The city may adopt a targeted revitalization program only after holding a public
174.30hearing after the program has been prepared. Notice of the hearing must be provided in a
174.31newspaper of general circulation in the city and in the most widely circulated community
174.32newspaper in the targeted neighborhoods not less than ten days nor more than 30 days
174.33before the date of the hearing subject to any local public notification requirements
175.1and consistent with citizen participation process established for identifying targeted
175.2communities.
175.3(c) A certification by the city that a targeted revitalization program has been
175.4approved by the city council for the targeted neighborhood community must be provided
175.5to the commissioner together with a copy of the program. A copy of the program must
175.6also be provided to the Minnesota Housing Finance Agency and the commissioner of
175.7employment and economic development.
175.8(d) A targeted revitalization program for the city may be modified at any time by
175.9the city council after a public hearing, notice of which is published in a newspaper of
175.10general circulation in the city and in the targeted neighborhood at least ten days nor
175.11more than 30 days before the date of the hearing. If the city council determines that the
175.12proposed modification is a significant modification to the program originally certified
175.13under paragraph (c), the city council shall implement the targeted revitalization program
175.14approval and certification process of this subdivision for the proposed modification.

175.15    Sec. 17. Minnesota Statutes 2008, section 469.204, subdivision 1, is amended to read:
175.16    Subdivision 1. Payment of state money. Upon receipt from a city of a certification
175.17that a revitalization program has been adopted or modified, the commissioner shall, within
175.1830 days, pay to the city the amount of state money identified as necessary to implement
175.19the revitalization program or program modification. State money may be paid to the
175.20city only to the extent that the appropriation limit for the city specified in subdivision 2
175.21is not exceeded. Once the state money has been paid to the city, it becomes targeted
175.22neighborhood community money for use by the city in accordance with an adopted
175.23revitalization program and subject only to the restrictions on its use in sections 469.201 to
175.24469.207 .

175.25    Sec. 18. Minnesota Statutes 2008, section 469.204, is amended by adding a subdivision
175.26to read:
175.27    Subd. 4. Revolving fund. A targeted community revitalization revolving fund
175.28is established in the state treasury. The fund consists of all money appropriated to the
175.29commissioner for the purposes of sections 469.201 to 469.207 and all proceeds received
175.30by the commissioner as the result of housing activities related to a targeted community
175.31revitalization program.

176.1    Sec. 19. Minnesota Statutes 2008, section 469.205, is amended to read:
176.2469.205 CITY POWERS; USES OF TARGETED NEIGHBORHOOD
176.3COMMUNITY MONEY.
176.4    Subdivision 1. Consolidation of existing powers in targeted neighborhoods
176.5communities. A city may exercise any of its corporate powers within a targeted
176.6neighborhood community. Those powers shall include, but not be limited to, all of
176.7the powers enumerated and granted to any city by chapters 462C, 469, and 474A. For
176.8the purposes of sections 469.048 to 469.068, a targeted neighborhood community is
176.9considered an industrial development district. A city may exercise the powers of sections
176.10469.048 to 469.068 in conjunction with, and in addition to, exercising the powers granted
176.11by sections 469.001 to 469.047 and chapter 462C, in order to promote and assist housing
176.12construction and rehabilitation within a targeted neighborhood community. For the
176.13purposes of section 462C.02, subdivision 9, a targeted neighborhood community is
176.14considered a "targeted area."
176.15    Subd. 2. Grants and loans. In addition to the authority granted by other law, a city
176.16may make grants, loans, and other forms of public assistance to individuals, for-profit and
176.17nonprofit corporations, and other organizations to implement a targeted revitalization
176.18program. The public assistance must contain the terms the city considers proper to
176.19implement a targeted revitalization program.
176.20    Subd. 3. Eligible uses of targeted neighborhood community money. The city may
176.21spend targeted neighborhood community money for any purpose authorized by subdivision
176.221 or 2, except that an amount equal to at least 50 percent of the state payment under section
176.23469.204 made to the city must be used for housing activities. Use of target neighborhood
176.24targeted community money must be authorized in a targeted revitalization program.

176.25    Sec. 20. Minnesota Statutes 2008, section 469.207, subdivision 2, is amended to read:
176.26    Subd. 2. Annual report. A city that begins to implement a revitalization program
176.27in a calendar year must, by March 1 of the succeeding calendar year, provide a detailed
176.28report on the revitalization program or programs being implemented in the city. The report
176.29must describe the status of the program implementation and analyze whether the intended
176.30outcomes identified in section 469.203, subdivision 1, clause (4), are being achieved. The
176.31report must include at least the following:
176.32(1) the number of housing units, including lost units, removed, created, lost,
176.33replaced, relocated, and assisted as a result of the program. The level of rent of the units
176.34and the income of the households affected must be included in the report;
177.1(2) the number and type of commercial establishments removed, created, and
177.2assisted as a result of a revitalization program. The report must include information
177.3regarding the number of new jobs created by category, whether the jobs are full time or
177.4part time, and the salary or wage levels of both new and expanded jobs in the affected
177.5commercial establishments;
177.6(3) a description of a statement of the cost of the public improvement projects that
177.7are part of the program and the number of jobs created for each $20,000 of money spent
177.8on commercial projects and applicable public improvement projects;
177.9(4) the increase in the tax capacity for the city as a result of the assistance to
177.10commercial and housing assistance; and
177.11(5) the amount of private investment that is a result of the use of public money
177.12in a targeted neighborhood community.
177.13The report must be submitted to the commissioner, the Minnesota housing finance
177.14agency, and the legislative audit commission, and must be available to the public.

177.15    Sec. 21. Minnesota Statutes 2008, section 580.07, is amended to read:
177.16580.07 POSTPONEMENT.
177.17    Subdivision 1. Postponement by mortgagee. The sale may be postponed, from
177.18time to time, by the party conducting the foreclosure, by inserting a notice of the
177.19postponement, as soon as practicable, in the newspaper in which the original advertisement
177.20was published, at the expense of the party requesting the postponement. The notice shall
177.21be published only once.
177.22    Subd. 2. Postponement by mortgagor or owner. (a) If all or a part of the property
177.23to be sold is classified as homestead under section 273.124 and contains one to four
177.24dwelling units, the mortgagor or owner may postpone the sale to the first date that is not
177.25a Saturday, Sunday, or legal holiday and is five months after the originally scheduled
177.26date of sale in the manner provided in this subdivision. To postpone a foreclosure sale
177.27pursuant to this subdivision, at any time after the first publication of the notice of mortgage
177.28foreclosure sale under section 580.03 but at least 15 days prior to the scheduled sale date
177.29specified in that notice, the mortgagor shall: (1) execute a sworn affidavit in the form set
177.30forth in subdivision 3, (2) record the affidavit in the office of each county recorder and
177.31registrar of titles where the mortgage was recorded, and (3) file with the sheriff conducting
177.32the sale and deliver to the attorney foreclosing the mortgage, a copy of the recorded
177.33affidavit, showing the date and office in which the affidavit was recorded. Recording of
177.34the affidavit and postponement of the foreclosure sale pursuant to this subdivision shall
177.35automatically reduce the mortgagor's redemption period under section 580.23 to five
178.1weeks. The postponement of a foreclosure sale pursuant to this subdivision does not
178.2require any change in the contents of the notice of sale, service of the notice of sale if the
178.3occupant was served with the notice of sale prior to postponement under this subdivision,
178.4or publication of the notice of sale if publication was commenced prior to postponement
178.5under this subdivision, notwithstanding the service and publication time periods specified
178.6in section 580.03, but the sheriff's certificate of sale shall indicate the actual date of the
178.7foreclosure sale and the actual length of the mortgagor's redemption period. No notice
178.8of postponement need be published. An affidavit complying with subdivision 3 shall be
178.9prima facie evidence of the facts stated therein, and shall be entitled to be recorded. The
178.10right to postpone a foreclosure sale pursuant to this subdivision may be exercised only
178.11once, regardless whether the mortgagor reinstates the mortgage prior to the postponed
178.12mortgage foreclosure sale.
178.13(b) If the automatic stay under United States Code, title 11, section 362, applies
178.14to the mortgage foreclosure after a mortgagor or owner requests postponement of the
178.15sheriff's sale under this section, then when the automatic stay is no longer applicable, the
178.16mortgagor's or owner's election to shorten the redemption period to five weeks under this
178.17section remains applicable to the mortgage foreclosure.
178.18    Subd. 3. Affidavit form. The affidavit referred to in subdivision 2 shall be in
178.19substantially the following form and shall contain all of the following information.
178.20STATE OF ______________
178.21COUNTY OF ______________
178.22    ________________________________________ (whether one or more, "Owner"),
178.23being first duly sworn on oath, states as follows:
178.24    1. (He is) (She is) (They are) the owner(s) or mortgagor(s) of the real property (the
178.25"Property") situated in __________ (Name of) County, Minnesota, legally described in the
178.26attached published Notice of Mortgage Foreclosure Sale (the "Notice"), and make this
178.27affidavit for the purpose of postponing the foreclosure sale of the Property pursuant to
178.28Minnesota Statutes, section 580.07, subdivision 2, for five months from the date scheduled
178.29in the attached Notice.
178.30    2. The Property is classified as homestead under Minnesota Statutes, section
178.31273.124, is occupied by Owner as a homestead, and is improved with not more than
178.32four dwelling units.
178.33    3. Owner has elected to shorten Owner's redemption period from any foreclosure
178.34sale of the Property to five weeks in exchange for the postponement of the foreclosure
178.35sale for five months.
179.1___________________________________________ (signature(s) of owner)
179.2Signed and sworn to (or affirmed) before me on .......... (date) by ................ (name(s)
179.3of person(s) making statement).
179.4___________________________________________ (signature of notary public)
179.5Notary Public
179.6EFFECTIVE DATE.This section is effective one month after the date of final
179.7enactment, and applies to foreclosure sales scheduled to occur on or after said effective
179.8date.

179.9    Sec. 22. CONSTRUCTION MITIGATION PILOT PROGRAM.
179.10    Subdivision 1. Purpose. The purpose of the construction mitigation grant program
179.11is to mitigate the impacts of transportation construction on local small businesses, to
179.12promote the retention of jobs in transportation construction areas, and to provide outreach
179.13to the public and small businesses to minimize interruption to local commerce. The
179.14Department of Transportation, Department of Employment and Economic Development,
179.15and local government units shall work together to ensure that the recommendations
179.16of the Department of Transportation's 2009 report to the legislature on transportation
179.17construction impacts and any statutory changes resulting from the report recommendations
179.18are applied when implementing the grant program.
179.19    Subd. 2. Establishment. The commissioner of employment and economic
179.20development shall develop and implement a construction mitigation grant program to
179.21make grants available to local government units to mitigate the impacts of transportation
179.22construction on local small businesses.
179.23    Subd. 3. Definitions. For purposes of this section:
179.24(1) "applicant" means a local government unit;
179.25(2) "commissioner" means the commissioner of the Department of Employment and
179.26Economic Development;
179.27(3) "eligible transportation project entirely or partially funded by state or federal
179.28funds" means a project that will affect one or more small businesses as a result of
179.29transportation work because the work is anticipated to impair road access for a minimum
179.30period of one month;
179.31(4) "local government unit" means a county, statutory or home rule charter city,
179.32town, special district, or other political subdivision;
179.33(5) "project" has the meaning given it in Minnesota Statutes, section 161.2415; and
180.1(6) "small business" means a business that employs ten or fewer employees and is
180.2located in an area that is adjacent to an eligible project.
180.3    Subd. 4. Applications. A grant applicant shall prepare and submit to the
180.4commissioner a written proposal detailing a construction mitigation plan and strategies
180.5on how the applicant will implement the plan to meet the purpose of the grant program
180.6as provided in subdivision 1. An applicant shall identify any nonstate funding sources
180.7available to match state funds distributed under subdivision 5.
180.8    Subd. 5. Fund distribution. In distributing funds, the commissioner shall consider
180.9the types of businesses affected by the eligible transportation project and shall balance
180.10funding between eligible transportation projects within the seven-county metropolitan area
180.11and eligible transportation projects outside of the seven-county metropolitan area.
180.12    Subd. 6. Expiration. This section expires on July 1, 2011.
180.13EFFECTIVE DATE.This section is effective the day following final enactment.

180.14    Sec. 23. REPEALER.
180.15Minnesota Statutes 2008, sections 469.203, subdivision 3; and 469.204, subdivisions
180.162 and 3, are repealed.

180.17ARTICLE 9
180.18MINNESOTA HERITAGE

180.19    Section 1. Minnesota Statutes 2008, section 129D.13, subdivision 1, is amended to
180.20read:
180.21    Subdivision 1. Distribution. The commissioner shall distribute the money provided
180.22by sections 129D.11 to 129D.13. Twice Annually the commissioner shall make block
180.23grants which shall be distributed in equal amounts to public stations for operational costs.
180.24The commissioner shall allocate money appropriated for the purposes of sections 129D.11
180.25to 129D.13 in such a manner that each eligible public station receives a block grant. In
180.26addition, the commissioner shall make matching grants to public stations. Matching grants
180.27shall be used for operational costs and shall be allocated using the procedure developed
180.28for distribution of state money under this section for grants made in fiscal year 1979. No
180.29station's matching grant in any fiscal year shall exceed the amount of Minnesota-based
180.30contributions received by that station in the previous fiscal year. Grants made pursuant to
180.31this subdivision may only be given to those federally licensed stations that are certified as
180.32eligible for community service grants through the Corporation for Public Broadcasting.
181.1Grant funds not expended by a station during the first year of the biennium do not cancel
181.2and may be carried over into the second fiscal year.

181.3    Sec. 2. Minnesota Statutes 2008, section 129D.13, subdivision 2, is amended to read:
181.4    Subd. 2. Exclusions from contribution amount. In calculating the amount of
181.5contributions received by a public station pursuant to subdivision 1, there shall be
181.6excluded: contributions, whether monetary or in kind, from the Corporation for Public
181.7Broadcasting; tax generated funds, including payments by public or private elementary
181.8and secondary schools; that portion of any foundation or corporation donation in excess
181.9of $500 $2,500 from any one contributor in a calendar the previous station fiscal year;
181.10contributions from any source if made for the purpose of capital expenditures; and
181.11contributions from all sources based outside the state.

181.12    Sec. 3. Minnesota Statutes 2008, section 129D.13, subdivision 3, is amended to read:
181.13    Subd. 3. Report. Each educational station receiving a grant shall annually report
181.14by July 1 annually by August 1 to the commissioner the purposes for which the money
181.15was used in the past fiscal year and the anticipated use of the money in the next fiscal year.
181.16The report shall be certified by an independent auditor or a certified public accountant.
181.17This report shall be submitted along with a new grant request submission. If the report
181.18is not submitted by September 1, the commissioner may withhold from the educational
181.19station 45 percent of the amount to which it was entitled based upon the contribution of
181.20the previous fiscal year, and may redistribute that money to other educational stations.

181.21    Sec. 4. Minnesota Statutes 2008, section 129D.14, subdivision 4, is amended to read:
181.22    Subd. 4. Application. To be eligible for a grant under this section, a licensee
181.23shall submit an application to the commissioner within the deadline prescribed by the
181.24commissioner according to state grant policies. Each noncommercial radio station
181.25receiving a grant shall report annually within the deadline prescribed by August 1 to the
181.26commissioner the purposes for which the money was used in the past fiscal year and the
181.27anticipated use of the money for the next fiscal year. This report shall be submitted along
181.28with a new grant request submission. If the application and report are not submitted within
181.29the deadline prescribed by the commissioner, the grant may be redistributed to the other
181.30noncommercial radio stations eligible for a grant under this section.

181.31    Sec. 5. Minnesota Statutes 2008, section 129D.14, subdivision 5, is amended to read:
182.1    Subd. 5. State community service block grants. (a) The commissioner shall
182.2determine eligibility for block grants and the allocation of block grant money on the basis
182.3of audited financial records of the station to receive the block grant funds for the station's
182.4fiscal year preceding the year in which the grant is made, as well as on the basis of the
182.5other requirements set forth in this section. The commissioner shall annually distribute
182.6block grants equally to all stations that comply with the eligibility requirements and for
182.7which a licensee applies for a block grant. Grant funds not expended by a station during
182.8the first year of the biennium do not cancel and may be carried over into the second fiscal
182.9year. The commissioner may promulgate rules to implement this section.
182.10(b) A station may use grant money under this section for any radio station expenses.

182.11    Sec. 6. Minnesota Statutes 2008, section 129D.14, subdivision 6, is amended to read:
182.12    Subd. 6. Audit. A station that receives a grant under this section shall have an
182.13audit of its financial records made by an independent auditor or Corporation for Public
182.14Broadcasting accepted audit at the end of for the fiscal year for which it received the grant.
182.15The audit shall include a review of station promotion, operation, and management and an
182.16analysis of the station's use of the grant money. A copy of the most recent audit shall be
182.17filed with the commissioner. If neither is available, The commissioner may accept a letter
182.18of negative assurance from an independent auditor or a certified public accountant.

182.19    Sec. 7. Minnesota Statutes 2008, section 129D.155, is amended to read:
182.20129D.155 REPAYMENT OF FUNDS.
182.21State funds distributed to public television or noncommercial radio stations and used
182.22to purchase equipment assets must be repaid to the state, without interest, if the assets
182.23purchased with these funds are sold within five years or otherwise converted to a person
182.24other than a nonprofit or municipal corporation. The amount due to the state shall be the
182.25net amount realized from the sale of the assets, but shall not exceed the amount of state
182.26funds advanced for the purchase of the asset. Public television and noncommercial radio
182.27stations receiving state funds must report biennially to the legislature on the location and
182.28usage of assets purchased with state funds.

182.29    Sec. 8. REVISOR'S INSTRUCTION.
182.30    In Minnesota Statutes, the revisor of statutes shall change the term "commission" to
182.31"center" wherever the term appears as part of or in reference to "Minnesota Humanities
182.32Commission."

183.1    Sec. 9. REPEALER.
183.2Minnesota Statutes 2008, section 129D.13, subdivision 4, is repealed.