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SF 2081

2nd Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:17pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to state government; establishing and modifying certain grants and
1.3programs; making technical changes; regulating certain activities and practices;
1.4providing penalties; establishing working groups; regulating unemployment
1.5insurance; regulating labor standards and wages; providing for licensing and
1.6fees; amending Iron Range resources provisions; regulating certain facilities;
1.7regulating certain boards and committees; modifying certain Housing Finance
1.8Authority provisions; modifying Heritage Finance provisions; appropriating
1.9money;amending Minnesota Statutes 2008, sections 15.75, subdivision 5;
1.1016B.54, subdivision 2; 84.94, subdivision 3; 85.0146, subdivision 1; 89A.08,
1.11subdivision 1; 115C.08, subdivision 4; 116J.035, subdivisions 1, 6; 116J.401,
1.12subdivision 2; 116J.424; 116J.431, subdivisions 1, 2, 4, 6, by adding a
1.13subdivision; 116J.435, subdivision 3; 116J.554, subdivision 1; 116J.555,
1.14subdivision 1; 116J.68, subdivision 2; 116J.8731, subdivisions 2, 3; 116L.03,
1.15subdivision 5; 116L.05, subdivision 5; 116L.20, subdivision 1; 116L.362,
1.16subdivision 1; 116L.364, subdivision 3; 116L.871, subdivision 1; 116L.96;
1.17116O.115, subdivisions 2, 4; 123A.08, subdivision 1; 124D.49, subdivision
1.183; 129D.13; 129D.14, subdivisions 4, 5, 6; 129D.155; 154.001; 154.19;
1.19154.44, subdivision 1; 154.51; 160.276, subdivision 8; 177.30; 177.31; 177.32;
1.20177.42, subdivision 6, by adding a subdivision; 177.43, subdivisions 3, 6a;
1.21178.02, subdivision 2; 182.656, subdivision 3; 214.01, subdivision 3; 214.04,
1.22subdivision 3; 216B.1612, subdivision 2; 241.27, subdivision 1; 248.061,
1.23subdivision 3; 248.07, subdivisions 7, 8; 256J.626, subdivision 4; 256J.66,
1.24subdivision 1; 268.031; 268.035, subdivisions 2, 17, by adding subdivisions;
1.25268.042, subdivision 3; 268.043; 268.044, subdivision 2; 268.047, subdivisions
1.261, 2; 268.051, subdivisions 1, 4; 268.052, subdivision 2; 268.053, subdivision
1.271; 268.057, subdivisions 4, 5; 268.0625, subdivision 1; 268.066; 268.067;
1.28268.069, subdivisions 1, 2; 268.07, subdivisions 1, 2, 3, 3b; 268.084; 268.085,
1.29subdivisions 1, 2, 3, 3a, 4, 5, 6, 15; 268.095, subdivisions 1, 2, 10, 11; 268.101,
1.30subdivisions 1, 2; 268.103, subdivision 1, by adding a subdivision; 268.105,
1.31subdivisions 1, 2, 3a, 4, 5; 268.115, subdivision 5; 268.125, subdivision 5;
1.32268.135, subdivision 4; 268.145, subdivision 1; 268.18, subdivisions 1, 2, 4a;
1.33268.186; 268.196, subdivisions 1, 2; 268.199; 268.211; 268A.06, subdivision
1.341; 298.22, subdivisions 2, 5a, 6, 7, 8, 10, 11; 298.221; 298.2211, subdivision 3;
1.35298.2213, subdivisions 4, 5; 298.2214, subdivision 1, by adding a subdivision;
1.36298.223; 298.227; 298.28, subdivision 9d; 298.292, subdivision 2; 298.294;
1.37298.296, subdivision 2; 298.2961; 298.297; 326B.33, subdivision 19; 326B.46,
1.38subdivision 4; 326B.475, subdivisions 4, 7; 326B.49, subdivision 1; 326B.56,
1.39subdivision 4; 326B.58; 326B.815, subdivision 1; 326B.821, subdivision 2;
2.1326B.86, subdivision 1; 326B.885, subdivision 2; 326B.89, subdivisions 3, 16;
2.2326B.94, subdivision 4; 326B.972; 326B.986, subdivisions 2, 5, 8; 327B.04,
2.3subdivisions 7, 8, by adding a subdivision; 327C.03, by adding a subdivision;
2.4327C.095, subdivision 12; 462A.05, subdivisions 14, 14a; 469.169, subdivision
2.53; 469.201, subdivisions 2, 4, 6, 7, 10, 11, 12; 469.202; 469.203, subdivisions
2.61, 2, 4; 469.204, subdivision 1, by adding a subdivision; 469.205; 469.207,
2.7subdivision 2; 580.07; Laws 1998, chapter 404, section 23, subdivision 6, as
2.8amended; Laws 2007, chapter 135, article 1, section 16; proposing coding
2.9for new law in Minnesota Statutes, chapters 90; 116J; 155A; 181; 268; 298;
2.10repealing Minnesota Statutes 2008, sections 116J.402; 116J.413; 116J.431,
2.11subdivision 5; 116J.58, subdivision 1; 116J.59; 116J.61; 116J.656; 116L.16;
2.12116L.88; 116U.65; 176.135, subdivision 1b; 268.085, subdivision 14; 268.086,
2.13subdivisions 1, 2, 3, 5, 6, 7, 8, 9; 469.203, subdivision 3; 469.204, subdivisions
2.142, 3; Minnesota Rules, part 1350.8300.
2.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.16ARTICLE 1
2.17JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

2.18
Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
2.19    The amounts shown in this section summarize direct appropriations, by fund, made
2.20in this article.
2.21
2010
2011
Total
2.22
General
$
134,668,000
$
134,492,000
$
269,160,000
2.23
Workforce Development
26,208,000
25,358,000
51,566,000
2.24
Remediation
700,000
700,000
1,400,000
2.25
Workers' Compensation
22,574,000
22,574,000
45,148,000
2.26
Total
$
184,150,000
$
183,124,000
$
367,274,000

2.27
Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.
2.28    The sums shown in the columns marked "Appropriations" are appropriated to the
2.29agencies and for the purposes specified in this article. The appropriations are from the
2.30general fund, or another named fund, and are available for the fiscal years indicated
2.31for each purpose. The figures "2010" and "2011" used in this article mean that the
2.32appropriations listed under them are available for the fiscal year ending June 30, 2010, or
2.33June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
2.34year 2011. "The biennium" is fiscal years 2010 and 2011.
2.35
APPROPRIATIONS
2.36
Available for the Year
2.37
Ending June 30
2.38
2010
2011

2.39
2.40
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
3.1
Subdivision 1.Total Appropriation
$
65,659,000
$
64,809,000
3.2
Appropriations by Fund
3.3
2010
2011
3.4
General
39,780,000
39,780,000
3.5
Remediation
700,000
700,000
3.6
3.7
Workforce
Development
25,179,000
24,329,000
3.8The amounts that may be spent for each
3.9purpose are specified in the following
3.10subdivisions.
3.11
3.12
Subd. 2.Business and Community
Development
8,515,000
8,515,000
3.13
Appropriations by Fund
3.14
General
7,426,000
7,426,000
3.15
Remediation
700,000
700,000
3.16
3.17
Workforce
Development
389,000
389,000
3.18(a) $700,000 each year is from the
3.19remediation fund for contaminated site
3.20cleanup and development grants under
3.21Minnesota Statutes, section 116J.554. This
3.22appropriation is available until expended.
3.23(b)(1) $150,000 each year is from the
3.24workforce development fund for a grant
3.25under Minnesota Statutes, section 116J.421,
3.26to the Rural Policy and Development
3.27Center at St. Peter, Minnesota. The grant
3.28shall be used for research and policy
3.29analysis on emerging economic and social
3.30issues in rural Minnesota, to serve as a
3.31policy resource center for rural Minnesota
3.32communities, to encourage collaboration
3.33across higher education institutions, to
3.34provide interdisciplinary team approaches
3.35to research and problem-solving in rural
4.1communities, and to administer overall
4.2operations of the center.
4.3(2) The grant shall be provided upon the
4.4condition that each state-appropriated
4.5dollar be matched with a nonstate dollar.
4.6Acceptable matching funds are nonstate
4.7contributions that the center has received and
4.8have not been used to match previous state
4.9grants. Any funds not spent the first year are
4.10available the second year.
4.11(c) $225,000 each year is from the general
4.12fund for a grant to WomenVenture for
4.13women's business development programs
4.14and for programs that encourage and assist
4.15women to enter nontraditional careers in the
4.16trades; manual and technical occupations;
4.17science, technology, engineering, and
4.18mathematics-related occupations; and green
4.19jobs. This appropriation may be matched
4.20dollar for dollar with any resources available
4.21from the federal government for these
4.22purposes with priority given to initiatives
4.23that have a goal of increasing by at least ten
4.24percent the number of women in occupations
4.25where women currently comprise less than 25
4.26percent of the workforce. The appropriation
4.27is available until expended.
4.28(d) $105,000 each year is from the general
4.29fund and $50,000 each year is from the
4.30workforce development fund for a grant to
4.31the Metropolitan Economic Development
4.32Association for continuing minority business
4.33development programs in the metropolitan
4.34area and for contract procurement support
4.35to businesses in northeast and southwest
5.1Minnesota. This appropriation must be used
5.2for the sole purpose of providing free or
5.3reduced fee business consulting services to
5.4minority entrepreneurs and contractors.
5.5(e) $50,000 each year is from the general
5.6fund for a grant to the Minnesota Inventors
5.7Congress, of which at least $5,000 must be
5.8used for youth inventors.
5.9(f)(1) $600,000 each year is from the general
5.10fund for a grant to BioBusiness Alliance
5.11of Minnesota for bioscience business
5.12development programs to promote and
5.13position the state as a global leader in
5.14bioscience business activities. This is a
5.15onetime appropriation. These funds may be
5.16used to create, recruit, retain, and expand
5.17biobusiness activity in Minnesota; implement
5.18the destination 2025 statewide plan; update
5.19a statewide assessment of the bioscience
5.20industry and the competitive position of
5.21Minnesota-based bioscience businesses
5.22relative to other states and other nations;
5.23and develop and implement business and
5.24scenario-planning models to create, recruit,
5.25retain, and expand biobusiness activity in
5.26Minnesota.
5.27(2) The BioBusiness Alliance must report
5.28each year by February 15 to the committees
5.29of the house of representatives and the senate
5.30having jurisdiction over bioscience industry
5.31activity in Minnesota on the use of funds;
5.32the number of bioscience businesses and
5.33jobs created, recruited, retained, or expanded
5.34in the state since the last reporting period;
5.35the competitive position of the biobusiness
6.1industry; and utilization rates and results of
6.2the business and scenario-planning models
6.3and outcomes resulting from utilization of
6.4the business and scenario-planning models.
6.5(g) Notwithstanding Minnesota Statutes,
6.6section 268.18, subdivision 2, $564,000 of
6.7funds collected for unemployment insurance
6.8administration under this subdivision is
6.9appropriated as follows: $250,000 to the
6.10city of Hugo for reimbursement of tornado
6.11relief efforts and $250,000 to Lake County
6.12for ice storm damage; and $64,000 is for the
6.13city of Green Isle for reimbursement of fire
6.14relief efforts and other expenses incurred as
6.15a result of the fire in the city of Green Isle.
6.16(h) $1,000,000 in the first year is from the
6.1721st Century Minerals Fund to the Board of
6.18Trustees of the Minnesota State Colleges
6.19and Universities for a grant to the Northeast
6.20Higher Education District for planning,
6.21design, and construction of classrooms and
6.22housing facilities for upper division students
6.23in the engineering program.
6.24(i)(1) $189,000 each year is appropriated
6.25from the workforce development fund for
6.26grants of $63,000 to eligible organizations
6.27each year to assist in the development of
6.28entrepreneurs and small businesses. Each
6.29state grant dollar must be matched with $1
6.30of nonstate funds. Any balance in the first
6.31year does not cancel but is available in the
6.32second year.
6.33(2) Three grants must be awarded to
6.34continue or to develop a program. One
6.35grant must be awarded to the Riverbend
7.1Center for Entrepreneurial Facilitation
7.2in Blue Earth County, and two to other
7.3organizations serving Faribault and Martin
7.4Counties. Grant recipients must report to the
7.5commissioner by February 1 of each year
7.6that the organization receives a grant with the
7.7number of customers served; the number of
7.8businesses started, stabilized, or expanded;
7.9the number of jobs created and retained; and
7.10business success rates. The commissioner
7.11must report to the house of representatives
7.12and senate committees with jurisdiction
7.13over economic development finance on the
7.14effectiveness of these programs for assisting
7.15in the development of entrepreneurs and
7.16small businesses.
7.17
Subd. 3.Workforce Development
54,698,000
53,848,000
7.18
Appropriations by Fund
7.19
General
29,908,000
29,908,000
7.20
7.21
Workforce
Development
24,790,000
23,940,000
7.22(a) $4,562,000 each year is from the general
7.23fund for the Minnesota job skills partnership
7.24program under Minnesota Statutes, sections
7.25116L.01 to 116L.17. If the appropriation for
7.26either year is insufficient, the appropriation
7.27for the other year is available. This
7.28appropriation is available until spent.
7.29(b) $8,800,000 each year is from the general
7.30fund for the state's vocational rehabilitation
7.31program under Minnesota Statutes, chapter
7.32268A.
7.33(c) $5,986,000 each year is from the general
7.34fund for the state services for the blind
7.35activities.
8.1(d) $2,380,000 each year is from the general
8.2fund for grants to centers for independent
8.3living under Minnesota Statutes, section
8.4268A.11.
8.5(e) $350,000 each year is from the general
8.6fund and $105,000 each year is from the
8.7workforce development fund for a grant
8.8under Minnesota Statutes, section 116J.8747,
8.9to Twin Cities RISE! to provide training to
8.10hard-to-train individuals. Funds unexpended
8.11in the first year are available for expenditure
8.12in the second year.
8.13(f) $150,000 each year is from the general
8.14fund and $50,000 each year is from the
8.15workforce development fund for a grant
8.16to Northern Connections in Perham to
8.17implement and operate a pilot workforce
8.18program that provides one-stop supportive
8.19services to individuals as they transition into
8.20the workforce.
8.21(g) $150,000 each year is from the general
8.22fund for a grant to Advocating Change
8.23Together for training, technical assistance,
8.24and resource materials for persons with
8.25developmental and mental illness disabilities.
8.26(h) $5,627,000 each year is from the general
8.27fund and $6,920,000 each year is from the
8.28workforce development fund for extended
8.29employment services for persons with severe
8.30disabilities or related conditions under
8.31Minnesota Statutes, section 268A.15. Of
8.32the general fund appropriation, $125,000
8.33each year is to supplement funds paid for
8.34wage incentives for the community support
9.1fund established in Minnesota Rules, part
9.23300.2045.
9.3(i) $1,613,000 each year is from the general
9.4fund for grants to programs that provide
9.5employment support services to persons with
9.6mental illness under Minnesota Statutes,
9.7sections 268A.13 and 268A.14. Grants
9.8may be used for special projects for young
9.9people with mental illness transitioning from
9.10school to work and people with serious
9.11mental illness receiving services through
9.12a mental health court or civil commitment
9.13court. Special projects must demonstrate
9.14interagency collaboration.
9.15(j) $145,000 each year is from the general
9.16fund and $175,000 each year is from the
9.17workforce development fund for a grant
9.18under Minnesota Statutes, section 268A.03,
9.19to Rise, Inc. for the Minnesota Employment
9.20Center for People Who are Deaf or Hard of
9.21Hearing. Money not expended the first year
9.22is available the second year.
9.23(k) $50,000 each year is from the general
9.24fund and $250,000 each year is from the
9.25workforce development fund for a grant to
9.26Lifetrack Resources for its immigrant and
9.27refugee collaborative program, including
9.28those related to job-seeking skills and
9.29workplace orientation, intensive job
9.30development, functional work English, and
9.31on-site job coaching. This appropriation may
9.32also be used in Rochester.
9.33(l) $3,500,000 each year is from the
9.34workforce development fund for the
10.1Minnesota youth program under Minnesota
10.2Statutes, sections 116L.56 and 116L.561.
10.3(m) $1,375,000 each year is from the
10.4workforce development fund for the
10.5Opportunities Industrialization Center
10.6programs.
10.7(n) $1,250,000 each year is from the
10.8workforce development fund for grants for
10.9the Minneapolis summer youth employment
10.10program. The grants shall be used to fund
10.11up to 500 jobs for youth each summer. Of
10.12this appropriation, $310,000 each year is for
10.13a grant to the learn-to-earn summer youth
10.14employment program. The commissioner
10.15shall establish criteria for awarding the
10.16grants. This appropriation is available in
10.17either year of the biennium and is available
10.18until spent.
10.19(o) $575,000 each year is from the workforce
10.20development fund for grants to fund summer
10.21youth employment in St. Paul. The grants
10.22shall be used to fund up to 500 jobs for
10.23youth each summer. The commissioner shall
10.24establish criteria for awarding the grants.
10.25This appropriation is available in either year
10.26of the biennium and is available until spent.
10.27(p) $1,000,000 each year is from the
10.28workforce development fund for the
10.29youthbuild program under Minnesota
10.30Statutes, sections 116L.361 to 116L.366.
10.31(q) $100,000 each year is from the
10.32workforce development fund for grants
10.33for the indigenous earthkeepers program
10.34for American Indian youth environmental
10.35education and training. Funds must be
11.1used to provide programming for up to
11.280 American Indian youth ages 14 to 19.
11.3The indigenous earthkeepers program must
11.4use the environment, with native language
11.5as its primary core, to develop student
11.6academic skills and knowledge at Center
11.7School and Healthy Nations Program of the
11.8Minneapolis American Indian Center. The
11.9program must foster a sense of civic and
11.10environmental responsibility by providing
11.11youth the opportunity to serve on small,
11.12natural, and urban resource crews in the
11.13Twin Cities metropolitan area and outside of
11.14the metropolitan area. In addition, it must
11.15build the capacity of these youths to improve
11.16their lives in an indigenous-inspired and
11.17culturally relevant manner. At a minimum,
11.18the program curriculum must include water
11.19studies, identification of waterway cleanup
11.20sites, cleanup of waterways significant to
11.21indigenous culture and education, plant
11.22identification, gardening, and indigenous
11.23language components. This is a onetime
11.24appropriation.
11.25(r) $340,000 each year is from the workforce
11.26development fund for grants to provide
11.27interpreters for a regional transition program
11.28that specializes in providing culturally
11.29appropriate transition services leading to
11.30employment for deaf, hard-of-hearing, and
11.31deaf-blind students.
11.32(s) The first $1,450,000 deposited in each
11.33year of the biennium into the contingent
11.34account created under Minnesota Statutes,
11.35section 268.199, shall be transferred
11.36before the closing of each fiscal year to
12.1the workforce development fund created
12.2under Minnesota Statutes, section 116L.20.
12.3Deposits in excess of $1,450,000 shall be
12.4transferred before the closing of each fiscal
12.5year to the general fund.
12.6(t) $75,000 each year is from the workforce
12.7development fund for a grant to the Ramsey
12.8County Workforce Investment Board for the
12.9development of the building lives program.
12.10This is a onetime appropriation.
12.11(u) $75,000 each year is from the workforce
12.12development fund for a grant to a nonprofit
12.13organization. The nonprofit organization
12.14must work on behalf of all licensed
12.15vendors to coordinate their efforts to
12.16respond to solicitations or other requests
12.17from private and governmental units as
12.18defined in Minnesota Statutes, section
12.19471.59, subdivision 1, in order to increase
12.20employment opportunities for persons with
12.21disabilities. This is a onetime appropriation.
12.22(v) $500,000 each year from the workforce
12.23development fund and $95,000 each year
12.24from the general fund is for a grant to
12.25the Minnesota Alliance of Boys and Girls
12.26Clubs to administer a statewide project
12.27of youth job skills development. This
12.28project, which may have career guidance
12.29components, including health and life skills,
12.30is to encourage, train, and assist youth in
12.31job-seeking skills, workplace orientation,
12.32and job site knowledge through coaching.
12.33This grant requires a 25 percent match from
12.34nonstate resources.
13.1(w) $100,000 in the first year is from the
13.2workforce development fund for a grant to the
13.3Southeast Asian Collaborative in Hennepin
13.4County for an intensive intervention
13.5transitional employment training project
13.6to move refugee and immigrant welfare
13.7recipients into unsubsidized employment
13.8leading to economic self-sufficiency. One
13.9of the five partners in the collaborative
13.10shall be chosen as the fiscal agent by the
13.11commissioner of employment and economic
13.12development. The primary effort must be
13.13on intensive employment skills training,
13.14including workplace English and overcoming
13.15cultural barriers, and on specialized training
13.16in fields of work which involve a credit-based
13.17curriculum. For recipients without a high
13.18school diploma or a GED, extra effort shall
13.19be made to help the recipient meet the ability
13.20to benefit test so the recipient can receive
13.21financial aid for further training. During
13.22the specialized training, efforts should be
13.23made to involve the recipients with an
13.24internship program and retention specialist.
13.25This appropriation is not available until the
13.26commissioner of finance has determined that
13.27at least an equal amount has been committed
13.28from nonstate funds.
13.29(x) $7,500,000 each year is from the
13.30workforce development fund for grants to
13.31establish two emergency employment pilot
13.32projects in counties with high unemployment
13.33rates. The grants may be used for wage
13.34subsidies of up to 50 percent of the wage
13.35paid. The maximum wage subsidy shall be
13.36$5 per hour. This is a onetime appropriation.
14.1(y) $1,000,000 each year is from reserve
14.2funds allocated to the Department of
14.3Employment and Economic Development
14.4under the American Recovery and
14.5Reinvestment Act, Public Law 115-5,
14.6for Workforce Investment Act adult and
14.7displaced worker programs for on-the-job
14.8training for eligible persons in counties
14.9with high unemployment. This is a onetime
14.10appropriation.
14.11(z) $750,000 the first year is from the
14.12workforce development fund to Enterprise
14.13Minnesota, Inc. for the small business
14.14growth acceleration program established
14.15under Minnesota Statutes, section 116O.115.
14.16(aa) $150,000 each year is for a grant to the
14.17nonprofit organization selected to administer
14.18the demonstration project for high-risk adults
14.19under Laws 2007, chapter 54, article 1,
14.20section 19, in order to continue the project
14.21for a second biennium. This is a onetime
14.22appropriation.
14.23(bb) Of the money available to Minnesota
14.24from the American Recovery and
14.25Reinvestment Act of 2009, Public Law
14.26111-5, and allocated to the Department of
14.27Employment and Economic Development for
14.28state employment programs, $250,000 is for
14.29a grant to Minnesota Diversified Industries
14.30to provide progressive development and
14.31employment opportunities in competitive
14.32business enterprises for people with
14.33disabilities. The appropriation in this section
14.34must be used to provide employee and
14.35program services eligible for funding under
15.1the American Recovery and Reinvestment
15.2Act. This appropriation is available until
15.3expended. No nonstate match is required for
15.4this grant.
15.5(cc) All Wagner-Peyser funds available to
15.6the state for job seeker services under the
15.7American Recovery and Reinvestment Act of
15.82009, Public Law 111-5, must be allocated to
15.9workforce development centers for universal
15.10job seeker services.
15.11(dd) All Workforce Investment Act
15.12discretionary funds available to the
15.13commissioner for workforce development
15.14under the American Recovery and
15.15Reinvestment Act of 2009, Public Law
15.16111-5, must first be allocated to replace
15.17reductions in state general fund or workforce
15.18development fund resources for employment
15.19and training or youth programs.
15.20The commissioner shall not use any
15.21unallocated discretionary funds available
15.22to the department under the American
15.23Recovery and Reinvestment Act, Public Law
15.24111-5, to hire full-time or part-time staff or
15.25enter into professional or technical contracts
15.26for any purpose other than administration
15.27of the unemployment insurance program
15.28or to provide direct services to job
15.29seekers, including assistance in filing for
15.30unemployment benefits.
15.31
Subd. 4.State-Funded Administration
2,446,000
2,446,000

15.32
Sec. 4. PUBLIC FACILITIES AUTHORITY
$
100,000
$
100,000
15.33$100,000 the first year and $100,000 the
15.34second year are for the small community
16.1wastewater treatment program under
16.2Minnesota Statutes, chapter 446A. This
16.3appropriation is available until spent.

16.4
Sec. 5. EXPLORE MINNESOTA TOURISM
$
10,311,000
$
10,311,000
16.5(a) Of this amount, $12,000 each year is for a
16.6grant to the Upper Minnesota Film Office.
16.7(b) To develop maximum private sector
16.8involvement in tourism, $500,000 the first
16.9year and $500,000 the second year must
16.10be matched by Explore Minnesota Tourism
16.11from nonstate sources. Each $1 of state
16.12incentive must be matched with $3 of private
16.13sector funding. Cash match is defined as
16.14revenue to the state or documented cash
16.15expenditures directly expended to support
16.16Explore Minnesota Tourism programs. Up
16.17to one-half of the private sector contribution
16.18may be in-kind or soft match. The incentive
16.19in the first year shall be based on fiscal
16.20year 2009 private sector contributions. The
16.21incentive in the second year will be based on
16.22fiscal year 2010 private sector contributions.
16.23This incentive is ongoing.
16.24Funding for the marketing grants is available
16.25either year of the biennium. Unexpended
16.26grant funds from the first year are available
16.27in the second year.
16.28Unexpended money from the general fund
16.29appropriations made under this section
16.30does not cancel but must be placed in a
16.31special marketing account for use by Explore
16.32Minnesota Tourism for additional marketing
16.33activities.
17.1(c) $325,000 the first year and $325,000 the
17.2second year are for the Minnesota Film and
17.3TV Board. The appropriation in each year
17.4is available only upon receipt by the board
17.5of $1 in matching contributions of money or
17.6in-kind contributions from nonstate sources
17.7for every $3 provided by this appropriation.
17.8(d) $650,000 the first year and $650,000
17.9the second year are appropriated for a grant
17.10to the Minnesota Film and TV Board for
17.11the film jobs production program under
17.12Minnesota Statutes, section 116U.26. These
17.13appropriations are available in either year
17.14of the biennium and are available until
17.15expended.

17.16
Sec. 6. HOUSING FINANCE AGENCY
17.17
Subdivision 1.Total Appropriation
$
45,208,000
$
45,208,000
17.18The amounts that may be spent for each
17.19purpose are specified in the following
17.20subdivisions.
17.21This appropriation is for transfer to the
17.22housing development fund for the programs
17.23specified. Except as otherwise indicated, this
17.24transfer is part of the agency's permanent
17.25budget base.
17.26
Subd. 2.Challenge Program
9,517,000
9,517,000
17.27For the economic development and housing
17.28challenge program under Minnesota Statutes,
17.29section 462A.33. Of this amount, $1,395,000
17.30each year shall be made available during the
17.31first 11 months of the fiscal year exclusively
17.32for housing projects for American Indians.
17.33Any funds not committed to housing projects
17.34for American Indians in the first 11 months
18.1of the fiscal year shall be available for any
18.2eligible activity under Minnesota Statutes,
18.3section 462A.33.
18.4Base Adjustment. Beginning July 1, 2011,
18.5the base is reduced by $1,150,000.
18.6
Subd. 3.Housing Trust Fund
10,555,000
10,555,000
18.7For deposit in the housing trust fund account
18.8created under Minnesota Statutes, section
18.9462A.201, and used for the purposes
18.10provided in that section.
18.11
Subd. 4.Rental Assistance for Mentally Ill
2,638,000
2,638,000
18.12For a rental housing assistance program for
18.13persons with a mental illness or families with
18.14an adult member with a mental illness under
18.15Minnesota Statutes, section 462A.2097.
18.16
Subd. 5.Family Homeless Prevention
7,465,000
7,465,000
18.17For the family homeless prevention and
18.18assistance programs under Minnesota
18.19Statutes, section 462A.204.
18.20
Subd. 6.Home Ownership Assistance Fund
385,000
385,000
18.21For the home ownership assistance program
18.22under Minnesota Statutes, section 462A.21,
18.23subdivision 8. In fiscal years 2012 and 2013,
18.24the base shall be $885,000 each year.
18.25
Subd. 7.Affordable Rental Investment Fund
8,996,000
8,996,000
18.26For the affordable rental investment fund
18.27program under Minnesota Statutes, section
18.28462A.21, subdivision 8b. The appropriation
18.29is to finance the acquisition, rehabilitation,
18.30and debt restructuring of federally assisted
18.31rental property and for making equity
18.32take-out loans under Minnesota Statutes,
18.33section 462A.05, subdivision 39.
19.1The owner of federally assisted rental
19.2property must agree to participate in
19.3the applicable federally assisted housing
19.4program and to extend any existing
19.5low-income affordability restrictions on the
19.6housing for the maximum term permitted.
19.7The owner must also enter into an agreement
19.8that gives local units of government,
19.9housing and redevelopment authorities,
19.10and nonprofit housing organizations the
19.11right of first refusal if the rental property
19.12is offered for sale. Priority must be given
19.13among comparable federally assisted rental
19.14properties to properties with the longest
19.15remaining term under an agreement for
19.16federal assistance. Priority must also be
19.17given among comparable rental housing
19.18developments to developments that are or
19.19will be owned by local government units, a
19.20housing and redevelopment authority, or a
19.21nonprofit housing organization.
19.22The appropriation also may be used to finance
19.23the acquisition, rehabilitation, and debt
19.24restructuring of existing supportive housing
19.25properties. For purposes of this subdivision,
19.26"supportive housing" means affordable rental
19.27housing with links to services necessary for
19.28individuals, youth, and families with children
19.29to maintain housing stability.
19.30
Subd. 8.Housing Rehabilitation
4,287,000
4,287,000
19.31For the housing rehabilitation program
19.32under Minnesota Statutes, section 462A.05,
19.33subdivision 14, for rental housing
19.34developments.
20.1
20.2
Subd. 9.Homeownership Education,
Counseling, and Training
865,000
865,000
20.3For the homeownership education,
20.4counseling, and training program under
20.5Minnesota Statutes, section 462A.209.
20.6
Subd. 10.Capacity Building Grants
250,000
250,000
20.7For nonprofit capacity building grants
20.8under Minnesota Statutes, section 462A.21,
20.9subdivision 3b.
20.10
20.11
Subd. 11.Transfer of Disaster Relief
Contingency Funds
20.12$1,500,000 of the amount unobligated
20.13and unencumbered in the disaster relief
20.14contingency fund under Minnesota Statutes,
20.15section 462A.21, subdivision 29, is
20.16transferred to the housing trust fund under
20.17Minnesota Statutes, section 462A.201, for
20.18grants for temporary rental assistance for
20.19families with children who are homeless and
20.20in need of or utilizing an emergency shelter
20.21facility. This is a onetime transfer and is not
20.22added to the agency's permanent budget base.
20.23
20.24
Subd. 12.Demonstration Project for High-Risk
Adults
20.25$250,000 in fiscal year 2010 and $250,000
20.26in fiscal year 2011 are appropriated from
20.27the general fund to the commissioner of the
20.28Housing Finance Agency for grants to the
20.29nonprofit organization selected to administer
20.30the demonstration project for high-risk adults
20.31under Laws 2007, chapter 54, article 1,
20.32section 19, in order to continue the project
20.33for a second biennium. This is a onetime
20.34appropriation.

21.1
Sec. 7. Commissioner of Finance
$
5,000
$
5,000
21.2$5,000 in fiscal year 2010 and $5,000 in
21.3fiscal year 2011 are for the commissioner of
21.4finance for administrative expenses under
21.5section 327C.03.

21.6
21.7
Sec. 8. DEPARTMENT OF LABOR AND
INDUSTRY
21.8
Subdivision 1.Total Appropriation
$
22,780,000
$
22,780,000
21.9
Appropriations by Fund
21.10
2010
2011
21.11
General
880,000
880,000
21.12
21.13
Workers'
Compensation
20,871,000
20,871,000
21.14
21.15
Workforce
Development
1,029,000
1,029,000
21.16The amounts that may be spent for each
21.17purpose are specified in the following
21.18subdivisions.
21.19
Subd. 2.Workers' Compensation
14,890,000
14,890,000
21.20This appropriation is from the workers'
21.21compensation fund.
21.22$200,000 each year is for grants to the
21.23Vinland Center for rehabilitation services.
21.24Grants shall be distributed as the department
21.25refers injured workers to the Vinland Center
21.26for rehabilitation services.
21.27
Subd. 3.Labor Standards/Apprenticeship
1,909,000
1,909,000
21.28
Appropriations by Fund
21.29
General
880,000
880,000
21.30
21.31
Workforce
Development
1,029,000
1,029,000
21.32(a) The appropriation from the workforce
21.33development fund is for the apprenticeship
21.34program under Minnesota Statutes, chapter
21.35178, and includes $100,000 each year for
22.1labor education and advancement program
22.2grants and to expand and promote registered
22.3apprenticeship training in nonconstruction
22.4trade programs.
22.5(b) $150,000 each year is from the workforce
22.6development fund for prevailing wage
22.7enforcement.
22.8(c) $200,000 the first year and $200,000
22.9the second year are from the assigned risk
22.10safety account for independent contractor
22.11investigator services to ensure compliance
22.12with the state's independent contractor
22.13exemption certificate program under
22.14Minnesota Statutes, section 181.723.
22.15
Subd. 4.General Support
5,981,000
5,981,000
22.16This appropriation is from the workers'
22.17compensation fund.

22.18
22.19
Sec. 9. BUREAU OF MEDIATION
SERVICES
22.20
Subdivision 1.Total Appropriation
$
1,683,000
$
1,683,000
22.21The amounts that may be spent for each
22.22purpose are specified in the following
22.23subdivisions.
22.24
Subd. 2.Mediation Services
1,583,000
1,583,000
22.25
22.26
Subd. 3.Labor Management Cooperation
Grants
100,000
100,000
22.27$100,000 each year is for grants to area labor
22.28management committees. Grants may be
22.29awarded for a 12-month period beginning
22.30July 1 each year. Any unencumbered balance
22.31remaining at the end of the first year does not
22.32cancel but is available for the second year.

23.1
23.2
Sec. 10. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,703,000
$
1,703,000
23.3This appropriation is from the workers'
23.4compensation fund.

23.5
23.6
Sec. 11. MINNESOTA HISTORICAL
SOCIETY
23.7
Subdivision 1.Total Appropriation
$
22,719,000
$
22,613,000
23.8The amounts that may be spent for each
23.9purpose are specified in the following
23.10subdivisions.
23.11
Subd. 2.Education and Outreach
12,870,000
12,870,000
23.12Notwithstanding Minnesota Statutes, section
23.13138.668, the Minnesota Historical Society
23.14may not charge a fee for its general tours at
23.15the Capitol, but may charge fees for special
23.16programs other than general tours.
23.17
Subd. 3.Preservation and Access
9,585,000
9,585,000
23.18
Subd. 4.Fiscal Agent
23.19
(a) Minnesota International Center
40,000
40,000
23.20
(b) Minnesota Air National Guard Museum
14,000
0
23.21
(c) Minnesota Military Museum
92,000
0
23.22
(d) Farmamerica
118,000
118,000
23.23
(e) Balances Forward
23.24Any unencumbered balance remaining in
23.25this subdivision the first year does not cancel
23.26but is available for the second year of the
23.27biennium.
23.28The general fund base for the Minnesota Air
23.29National Guard Museum in fiscal year 2012
23.30is $16,000.
24.1The general fund base for the Minnesota
24.2Military Museum in fiscal year 2012 is
24.3$100,000.
24.4
Subd. 5.Fund Transfer
24.5The Minnesota Historical Society may
24.6reallocate funds appropriated in and between
24.7subdivisions 2 and 3 for any program
24.8purposes and the appropriations are available
24.9in either year of the biennium.

24.10
Sec. 12. BOARD OF ACCOUNTANCY
$
505,000
$
505,000

24.11
24.12
24.13
24.14
Sec. 13. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
815,000
$
815,000

24.15
24.16
Sec. 14. BOARD OF BARBER AND
COSMETOLOGIST EXAMINERS
$
839,000
$
839,000

24.17
24.18
Sec. 15. COMBATIVE SPORTS
COMMISSION
$
30,000
$
30,000
24.19This is a onetime appropriation. The
24.20Combative Sports Commission expires on
24.21July 1, 2011, unless the commissioner of
24.22management and budget determines that
24.23the commission's projected expenditures for
24.24the fiscal biennium ending June 30, 2013,
24.25will not exceed the commission's projected
24.26revenues for the fiscal biennium ending June
24.2730, 2013, from fees and penalties authorized
24.28in Minnesota Statutes 2008, chapter 341.

24.29
24.30
Sec. 16. LEGISLATIVE COORDINATING
COMMISSION
$
70,000
$
0
24.31From the general fund to the Legislative
24.32Coordinating Commission under Minnesota
24.33Statutes, section 3.303, for fiscal year 2010
25.1for the economic development strategy
25.2working group established in article 2,
25.3section 41.

25.4
Sec. 17. BOARD OF THE ARTS
25.5
Subdivision 1.Total Appropriation
$
9,530,000
$
9,530,000
25.6The amounts that may be spent for each
25.7purpose are specified in the following
25.8subdivisions.
25.9
Subd. 2.Operations and Services
600,000
600,000
25.10
Subd. 3.Grants Program
6,202,000
6,202,000
25.11
Subd. 4.Regional Arts Councils
2,728,000
2,728,000

25.12
25.13
Sec. 18. MINNESOTA HUMANITIES
CENTER
$
238,000
$
238,000

25.14
Sec. 19. PUBLIC BROADCASTING
$
1,955,000
$
1,955,000
25.15(a) $1,161,000 the first year and $1,161,000
25.16the second year are for matching grants for
25.17public television.
25.18(b) $200,000 the first year and $200,000
25.19the second year are for public television
25.20equipment grants. Equipment or matching
25.21grant allocations shall be made after
25.22considering the recommendations of the
25.23Minnesota Public Television Association.
25.24(c) $17,000 the first year and $17,000 the
25.25second year are for grants to the Twin Cities
25.26regional cable channel.
25.27(d) $287,000 the first year and $287,000 the
25.28second year are for community service grants
25.29to public educational radio stations.
25.30(e) $100,000 the first year and $100,000
25.31the second year are for equipment grants to
25.32public educational radio stations.
26.1(f) The grants in paragraphs (d) and (e)
26.2must be allocated after considering the
26.3recommendations of the Association of
26.4Minnesota Public Educational Radio Stations
26.5under Minnesota Statutes, section 129D.14.
26.6(g) $190,000 the first year and $190,000
26.7the second year are for equipment grants to
26.8Minnesota Public Radio, Inc.
26.9(h) Any unencumbered balance remaining
26.10the first year for grants to public television or
26.11radio stations does not cancel and is available
26.12for the second year.

26.13    Sec. 20. Laws 1998, chapter 404, section 23, subdivision 6, as amended by Laws 2002,
26.14chapter 220, article 10, section 35, subdivision 6, is amended to read:
26.15
Subd. 6.St. Paul RiverCentre Arena
65,000,000
26.16This appropriation is from the general fund
26.17to the commissioner of finance for a loan to
26.18the city of St. Paul to demolish the existing
26.19St. Paul RiverCentre Arena and to design,
26.20construct, furnish, and equip a new arena.
26.21This appropriation is not available until the
26.22lessee to whom the city has leased the arena
26.23has agreed to make rental or other payments
26.24to the city under the terms set forth in this
26.25subdivision. The loan is repayable solely
26.26from and secured by the payments made
26.27to the city by the lessee. The loan is not a
26.28public debt and the full faith, credit, and
26.29taxing powers of the city are not pledged for
26.30its repayment.
26.31(a) $48,000,000 $15,250,000 of the loan
26.32must be repaid to the commissioner, without
26.33interest, within 20 12 years from the date
27.1of substantial completion of the arena in
27.2accordance with the following schedule:
27.3(1) no repayments are due in the first two
27.4years from the date of substantial completion;
27.5(2) in each of the years three to five, the
27.6lessee must pay $1,250,000;
27.7(3) in each of the years six to ten, the lessee
27.8must pay $1,500,000; and
27.9(4) in each of the years 11 to 13 12, the lessee
27.10must pay $2,000,000;.
27.11(5) in year 14, the lessee must pay
27.12$3,000,000;
27.13(6) in year 15, the lessee must pay
27.14$4,000,000; and
27.15(7) in each of the years 16 to 20, the lessee
27.16must pay $4,750,000.
27.17(b) The commissioner must deposit the
27.18repayments in the state treasury and credit
27.19them to the general fund.
27.20(c) The loan may not be made until the
27.21commissioner has entered into an agreement
27.22with the city of St. Paul identifying the rental
27.23or other payments that will be made and
27.24establishing the dates on and the amounts
27.25in which the payments will be made to the
27.26city and by the city to the commissioner. The
27.27payments may include operating revenues
27.28and additional payments to be made by the
27.29lessee under agreements to be negotiated
27.30between the commissioner, the city, and the
27.31lessee. Those agreements may include, but
27.32are not limited to, an agreement whereby the
27.33lessee pledges to provide each year a letter
27.34of credit sufficient to guarantee the payment
28.1of the amount due for the next succeeding
28.2year; an agreement whereby the lessee
28.3agrees to maintain a net worth, certified each
28.4year by a financial institution or accounting
28.5firm satisfactory to the commissioner, that
28.6is greater than the balance due under the
28.7payment schedule in paragraph (a); and any
28.8other agreements the commissioner may
28.9deem necessary to ensure that the payments
28.10are made as scheduled.
28.11(d) The agreements must provide that the
28.12failure of the lessee to make a payment due
28.13to the city under the agreement is an event
28.14of default under the lease between the city
28.15and the lessee and that the state is entitled to
28.16enforce the remedies of the lessor under the
28.17lease in the event of default. Those remedies
28.18must include, but need not be limited to, the
28.19obligation of the lessee to pay the balance due
28.20for the remainder of the payment schedule
28.21in the event the lessee ceases to operate a
28.22National Hockey League team in the arena.
28.23(e) By January 1, 1999, the commissioner
28.24shall report to the chair of the senate
28.25committee on state government finance
28.26and the chair of the house committee on
28.27ways and means the terms of an agreement
28.28between the lessee and the amateur sports
28.29commission whereby the lessee agrees to
28.30make the facilities of the arena available to
28.31the commission on terms satisfactory to the
28.32commission for amateur sports activities
28.33consistent with the purposes of Minnesota
28.34Statutes, chapter 240A, each year during the
28.35time the loan is outstanding. The amateur
28.36sports commission must negotiate in good
29.1faith and may be required to pay no more
29.2than actual out-of-pocket expenses for the
29.3time it uses the arena. The agreement may
29.4not become effective before February 1,
29.51999. During any calendar year after 1999
29.6that an agreement under this paragraph is
29.7not in effect and a payment is due under
29.8the schedule, the lessee must pay to the
29.9commissioner a penalty of $750,000 for that
29.10year. If the amateur sports commission has
29.11not negotiated in good faith, no penalty is
29.12due.
29.13EFFECTIVE DATE.This section is effective the day after the city of St. Paul
29.14issues up to $40,000,000 in bonds for a community ice facility as authorized in law.

29.15ARTICLE 2
29.16EMPLOYMENT AND ECONOMIC DEVELOPMENT-RELATED PROVISIONS

29.17    Section 1. Minnesota Statutes 2008, section 15.75, subdivision 5, is amended to read:
29.18    Subd. 5. Agreements with Department of Employment and Economic
29.19Development. The commissioner of employment and economic development may
29.20enter into agreements with regional entities established under subdivision 4 to prepare
29.21plans to ensure coordination of the department's business development, community
29.22development, workforce development, and trade functions with programs of local units of
29.23government and other public and private development agencies in the regions. The plans
29.24will identify regional development priorities and serve as a guide for the implementation
29.25of the department's programs in the regions.

29.26    Sec. 2. Minnesota Statutes 2008, section 16B.54, subdivision 2, is amended to read:
29.27    Subd. 2. Vehicles. (a) The commissioner may direct an agency to make a transfer of
29.28a passenger motor vehicle or truck currently assigned to it. The transfer must be made to
29.29the commissioner for use in the central motor pool. The commissioner shall reimburse an
29.30agency whose motor vehicles have been paid for with funds dedicated by the Constitution
29.31for a special purpose and which are assigned to the central motor pool. The amount of
29.32reimbursement for a motor vehicle is its average wholesale price as determined from the
29.33midwest edition of the National Automobile Dealers Association official used car guide.
30.1(b) To the extent that funds are available for the purpose, the commissioner may
30.2purchase or otherwise acquire additional passenger motor vehicles and trucks necessary
30.3for the central motor pool. The title to all motor vehicles assigned to or purchased or
30.4acquired for the central motor pool is in the name of the Department of Administration.
30.5(c) On the request of an agency, the commissioner may transfer to the central
30.6motor pool any passenger motor vehicle or truck for the purpose of disposing of it. The
30.7department or agency transferring the vehicle or truck must be paid for it from the motor
30.8pool revolving account established by this section in an amount equal to two-thirds of the
30.9average wholesale price of the vehicle or truck as determined from the midwest edition of
30.10the National Automobile Dealers Association official used car guide.
30.11(d) The commissioner shall provide for the uniform marking of all motor vehicles.
30.12Motor vehicle colors must be selected from the regular color chart provided by the
30.13manufacturer each year. The commissioner may further provide for the use of motor
30.14vehicles without marking by:
30.15(1) the governor;
30.16(2) the lieutenant governor;
30.17(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling
30.18Enforcement, and arson investigators of the Division of Fire Marshal in the Department of
30.19Public Safety;
30.20(4) the Financial Institutions Division and investigative staff of the Department
30.21of Commerce;
30.22(5) the Division of Disease Prevention and Control of the Department of Health;
30.23(6) the State Lottery;
30.24(7) criminal investigators of the Department of Revenue;
30.25(8) state-owned community service facilities in the Department of Human Services;
30.26(9) the investigative staff of the Department of Employment and Economic
30.27Development;
30.28(10) (9) the Office of the Attorney General; and
30.29(11) (10) the investigative staff of the Gambling Control Board.

30.30    Sec. 3. Minnesota Statutes 2008, section 84.94, subdivision 3, is amended to read:
30.31    Subd. 3. Identification and classification. The Department of Natural Resources,
30.32with the cooperation of the state Geological Survey, Departments the Department of
30.33Transportation, and Energy, Planning and Development the Department of Employment
30.34and Economic Development, outside of the metropolitan area as defined in section
30.35473.121 , shall conduct a program of identification and classification of potentially valuable
31.1publicly or privately owned aggregate lands located outside of urban or developed areas
31.2where aggregate mining is restricted, without consideration of their present land use. The
31.3program shall give priority to identification and classification in areas of the state where
31.4urbanization or other factors are or may be resulting in a loss of aggregate resources to
31.5development. Lands shall be classified as:
31.6(1) identified resources, being those containing significant aggregate deposits;
31.7(2) potential resources, being those containing potentially significant deposits and
31.8meriting further evaluation; or
31.9(3) subeconomic resources, being those containing no significant deposits.
31.10As lands are classified, the information on the classification shall be transmitted to
31.11each of the departments and agencies named in this subdivision, to the planning authority
31.12of the appropriate county and municipality, and to the appropriate county engineer. The
31.13county planning authority shall notify owners of land classified under this subdivision by
31.14publication in a newspaper of general circulation in the county or by mail.

31.15    Sec. 4. Minnesota Statutes 2008, section 115C.08, subdivision 4, is amended to read:
31.16    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
31.17(1) to administer the petroleum tank release cleanup program established in this
31.18chapter;
31.19(2) for agency administrative costs under sections 116.46 to 116.50, sections
31.20115C.03 to 115C.06, and costs of corrective action taken by the agency under section
31.21115C.03 , including investigations;
31.22(3) for costs of recovering expenses of corrective actions under section 115C.04;
31.23(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
31.24(5) for agency administrative costs of enforcing rules governing the construction,
31.25installation, operation, and closure of aboveground and underground petroleum storage
31.26tanks;
31.27(6) for reimbursement of the environmental response, compensation, and compliance
31.28account under subdivision 5 and section 115B.26, subdivision 4;
31.29(7) for administrative and staff costs as set by the board to administer the petroleum
31.30tank release program established in this chapter;
31.31(8) for corrective action performance audits under section 115C.093;
31.32(9) for contamination cleanup grants, as provided in paragraph (c); and
31.33(10) to assess and remove abandoned underground storage tanks under section
31.34115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
31.35services costs necessary to complete the tank removal project, including, but not limited
32.1to, excavation soil sampling, groundwater sampling, soil disposal, and completion of an
32.2excavation report.
32.3(b) Except as provided in paragraph (c), money in the fund is appropriated to the
32.4board to make reimbursements or payments under this section.
32.5(c) $6,200,000 is annually appropriated from the fund to the commissioner of
32.6employment and economic development for contamination cleanup grants under section
32.7116J.554 . Of this amount, the commissioner may spend up to $180,000 $225,000 annually
32.8for administration of the contamination cleanup grant program. The appropriation does
32.9not cancel and is available until expended. The appropriation shall not be withdrawn from
32.10the fund nor the fund balance reduced until the funds are requested by the commissioner
32.11of employment and economic development. The commissioner shall schedule requests
32.12for withdrawals from the fund to minimize the necessity to impose the fee authorized by
32.13subdivision 2. Unless otherwise provided, the appropriation in this paragraph may be
32.14used for:
32.15(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
32.16to petroleum contamination or new and used tar and tar-like substances, including but not
32.17limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
32.18primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
32.19fractions or residues from the processing of petroleum crude or petroleum products as
32.20defined in section 296A.01; and
32.21(2) the costs of performing contamination investigation if there is a reasonable basis
32.22to suspect the contamination is attributable to petroleum or new and used tar and tar-like
32.23substances, including but not limited to bitumen and asphalt, but excluding bituminous or
32.24asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
32.25in the earth or are distillates, fractions, or residues from the processing of petroleum crude
32.26or petroleum products as defined in section 296A.01.

32.27    Sec. 5. Minnesota Statutes 2008, section 116J.035, subdivision 1, is amended to read:
32.28    Subdivision 1. Powers. (a) The commissioner may:
32.29(1) apply for, receive, and expend money from municipal, county, regional, and
32.30other government agencies;
32.31(2) apply for, accept, and disburse grants and other aids from other public or private
32.32sources;
32.33(3) contract for professional services if such work or services cannot be satisfactorily
32.34performed by employees of the department or by any other state agency;
33.1(4) enter into interstate compacts to jointly carry out such research and planning with
33.2other states or the federal government where appropriate;
33.3(5) distribute informational material at no cost to the public upon reasonable request;
33.4and
33.5(6) enter into contracts necessary for the performance of the commissioner's duties
33.6with federal, state, regional, metropolitan, local, and other agencies or units of government;
33.7educational institutions, including the University of Minnesota. Contracts made pursuant
33.8to this section shall not be subject to the competitive bidding requirements of chapter 16C.
33.9(b) The commissioner may apply for, receive, and expend money made available
33.10from federal or other sources for the purpose of carrying out the duties and responsibilities
33.11of the commissioner pursuant to this chapter.
33.12(c) All moneys received by the commissioner pursuant to this chapter shall be
33.13deposited in the state treasury and, subject to section 3.3005, are appropriated to the
33.14commissioner for the purpose for which the moneys have been received. The money shall
33.15not cancel and shall be available until expended.

33.16    Sec. 6. Minnesota Statutes 2008, section 116J.035, subdivision 6, is amended to read:
33.17    Subd. 6. Receipt of gifts, money; appropriation. (a) The commissioner may
33.18accept gifts, bequests, grants, payments for services, and other public and private money
33.19to help finance the activities of the department.:
33.20(1) apply for, accept, and disburse gifts, bequests, grants, payments for services,
33.21loans, or other property from the United States, the state, private foundations, or any
33.22other source;
33.23(2) enter into an agreement required for the gifts, grants, or loans; and
33.24(3) hold, use, and dispose of its assets according to the terms of the gift, grant,
33.25loan, or agreement.
33.26(b) Money received by the commissioner under this subdivision must be deposited
33.27in a separate account in the state treasury and invested by the State Board of Investment.
33.28The amount deposited, including investment earnings, is appropriated to the commissioner
33.29to carry out duties under this section.

33.30    Sec. 7. Minnesota Statutes 2008, section 116J.401, subdivision 2, is amended to read:
33.31    Subd. 2. Duties; authorizations; limitations. (a) The commissioner of employment
33.32and economic development shall:
34.1(1) provide regional development commissions, the Metropolitan Council, and
34.2units of local government with information, technical assistance, training, and advice on
34.3using federal and state programs;
34.4(2) receive and administer the Small Cities Community Development Block Grant
34.5Program authorized by Congress under the Housing and Community Development Act of
34.61974, as amended;
34.7(3) receive and administer the section 107 technical assistance program grants
34.8authorized by Congress under the Housing and Community Development Act of 1974, as
34.9amended;
34.10(4) receive, administer, and supervise other state and federal grants and grant
34.11programs for planning, community affairs, community development purposes,
34.12employment and training services, and other state and federal programs assigned to the
34.13department by law or by the governor in accordance with section 4.07;
34.14(5) receive applications for state and federal grants and grant programs for planning,
34.15community affairs, and community development purposes, and other state and federal
34.16programs assigned to the department by law or by the governor in accordance with section
34.174.07 ;
34.18(6) act as the agent of, and cooperate with, the federal government in matters of
34.19mutual concern, including the administration of any federal funds granted to the state to
34.20aid in the performance of functions of the commissioner;
34.21(7) provide consistent, integrated employment and training services across the state;
34.22(8) administer the Wagner-Peyser Act, the Workforce Investment Act, and other
34.23federal employment and training programs;
34.24(9) establish the standards for all employment and training services administered
34.25under this chapter and chapters 116L, 248, 268, and 268A;
34.26(10) administer the aspects of the Minnesota family investment program, general
34.27assistance, and food stamps that relate to employment and training services, subject to the
34.28contract under section 116L.86, subdivision 1;
34.29(11) obtain reports from local service units and service providers for the purpose of
34.30evaluating the performance of employment and training services;
34.31(12) as requested, certify employment and training services, and decertify services
34.32that fail to comply with performance criteria according to standards established by the
34.33commissioner;
34.34(13) develop standards for the contents and structure of the local service unit plans
34.35and plans for Indian tribe employment and training services, review and comment on those
34.36plans, and approve or disapprove the plans;
35.1(14) supervise the county boards of commissioners, local service units, and any other
35.2units of government designated in federal or state law as responsible for employment and
35.3training programs;
35.4(15) establish administrative standards and payment conditions for providers of
35.5employment and training services;
35.6(16) enter into agreements with Indian tribes as necessary to provide employment
35.7and training services as appropriate funds become available;
35.8(17) cooperate with the federal government and its employment and training
35.9agencies in any reasonable manner as necessary to qualify for federal aid for employment
35.10and training services and money;
35.11(18) administer and supervise all forms of unemployment insurance provided for
35.12under federal and state laws;
35.13(19) provide current state and substate labor market information and forecasts, in
35.14cooperation with other agencies;
35.15(20) require all general employment and training programs that receive state funds
35.16to make available information about opportunities for women in nontraditional careers
35.17in the trades and technical occupations;
35.18(21) consult with the Rehabilitation Council for the Blind on matters pertaining to
35.19programs and services for the blind and visually impaired;
35.20(22) enter into agreements with other departments of the state and local units of
35.21government as necessary; and
35.22(23) establish and maintain administrative units necessary to perform administrative
35.23functions common to all divisions of the department.;
35.24(24) investigate, study, and undertake ways and means of promoting and encouraging
35.25the prosperous development and protection of the legitimate interest and welfare of
35.26Minnesota business, industry, and commerce, within and outside the state;
35.27(25) locate markets for manufacturers and processors and aid merchants in locating
35.28and contacting markets;
35.29(26) as necessary or useful for the proper execution of the powers and duties of the
35.30commissioner in promoting and developing Minnesota business, industry, and commerce,
35.31both within and outside the state, investigate and study conditions affecting Minnesota
35.32business, industry, and commerce; collect and disseminate information; and engage in
35.33technical studies, scientific investigations, statistical research, and educational activities;
35.34(27) plan and develop an effective business information service both for the direct
35.35assistance of business and industry of the state and for the encouragement of business and
35.36industry outside the state to use economic facilities within the state;
36.1(28) compile, collect, and develop periodically, or otherwise make available,
36.2information relating to current business conditions;
36.3(29) conduct or encourage research designed to further new and more extensive uses
36.4of the natural and other resources of the state and designed to develop new products
36.5and industrial processes;
36.6(30) study trends and developments in the industries of the state and analyze the
36.7reasons underlying the trends;
36.8(31) study costs and other factors affecting successful operation of businesses within
36.9the state;
36.10(32) make recommendations regarding circumstances promoting or hampering
36.11business and industrial development;
36.12(33) serve as a clearinghouse for business and industrial problems of the state;
36.13(34) advise small business enterprises regarding improved methods of accounting
36.14and bookkeeping;
36.15(35) cooperate with interstate commissions engaged in formulating and promoting
36.16the adoption of interstate compacts and agreements helpful to business, industry, and
36.17commerce;
36.18(36) cooperate with other state departments and with boards, commissions, and
36.19other state agencies in the preparation and coordination of plans and policies for the
36.20development of the state and for the use and conservation of its resources insofar as the
36.21use, conservation, and development may be appropriately directed or influenced by a
36.22state agency;
36.23(37) in connection with state, county, and municipal public works projects, assemble
36.24and coordinate information relative to the status, scope, cost, and employment possibilities
36.25and availability of materials, equipment, and labor and recommend limitations on the
36.26public works;
36.27(38) gather current progress information with reference to public and private
36.28works projects of the state and its political subdivisions with reference to conditions of
36.29employment;
36.30(39) inquire into and report to the governor, when requested by the governor, with
36.31respect to any program of public state improvements and its financing; and request
36.32and obtain information from other state departments or agencies as may be needed for
36.33the report;
36.34(40) study changes in population and current trends and prepare plans and suggest
36.35policies for the development and conservation of the resources of the state;
37.1(41) confer and cooperate with the executive, legislative, or planning authorities of
37.2the United States, neighboring states and provinces, and the counties and municipalities
37.3of neighboring states, for the purpose of bringing about a coordination between the
37.4development of neighboring provinces, states, counties, and municipalities and the
37.5development of this state;
37.6(42) generally gather, compile, and make available statistical information relating to
37.7business, trade, commerce, industry, transportation, communication, natural resources,
37.8and other like subjects in this state, with authority to call upon other state departments for
37.9statistical data and results obtained by them and to arrange and compile that statistical
37.10information in a reasonable manner;
37.11(43) publish documents and annually convene regional meetings to inform
37.12businesses, local government units, assistance providers, and other interested persons of
37.13changes in state and federal law related to economic development;
37.14(44) annually convene conferences of providers of economic development-related
37.15financial and technical assistance for the purposes of exchanging information on economic
37.16development assistance, coordinating economic development activities, and formulating
37.17economic development strategies;
37.18(45) provide business with information on the economic benefits of energy
37.19conservation and on the availability of energy conservation assistance;
37.20(46) as part of the biennial budget process, prepare performance measures for each
37.21business loan or grant program within the jurisdiction of the commissioner. Measures
37.22include source of funds for each program, number of jobs proposed or promised at the
37.23time of application and the number of jobs created, estimated number of jobs retained, the
37.24average salary and benefits for the jobs resulting from the program, and the number of
37.25projects approved;
37.26(47) provide a continuous program of education for business people;
37.27(48) publish, disseminate, and distribute information and statistics;
37.28(49) promote and encourage the expansion and development of markets for
37.29Minnesota products;
37.30(50) promote and encourage the location and development of new businesses in the
37.31state as well as the maintenance and expansion of existing businesses and for that purpose
37.32cooperate with state and local agencies and individuals, both within and outside the state;
37.33(51) advertise and disseminate information as to natural resources, desirable
37.34locations, and other advantages for the purpose of attracting businesses to locate in this
37.35state;
38.1(52) aid the various communities in this state in attracting business to their
38.2communities;
38.3(53) advise and cooperate with municipal, county, regional, and other planning
38.4agencies and planning groups within the state for the purpose of promoting coordination
38.5between the state and localities as to plans and development in order to maintain a high
38.6level of gainful employment in private profitable production and achieve commensurate
38.7advancement in social and cultural welfare;
38.8(54) coordinate the activities of statewide and local planning agencies, correlate
38.9information secured from them and from state departments and disseminate information
38.10and suggestions to the planning agencies;
38.11(55) encourage and assist in the organization and functioning of local planning
38.12agencies where none exist; and
38.13(56) adopt measures calculated to promote public interest in and understanding of
38.14the problems of planning and, to that end, may publish and distribute copies of any plan
38.15or any report and may employ other means of publicity and education that will give full
38.16effect to the provisions of sections 116J.58 to 116J.63.
38.17(b) At the request of any governmental subdivision in paragraph (a), clause (53),
38.18the commissioner may provide planning assistance, which includes but is not limited to
38.19surveys, land use studies, urban renewal plans, technical services and other planning
38.20work to any city or other municipality in the state or perform similar planning work in
38.21any county, metropolitan area, or regional area in the state. The commissioner must not
38.22perform the planning work with respect to a metropolitan or regional area which is under
38.23the jurisdiction for planning purposes of a county, metropolitan, regional, or joint planning
38.24body, except at the request or with the consent of the respective county, metropolitan,
38.25regional, or joint planning body.
38.26(c) The commissioner is authorized to:
38.27(1) receive and expend money from municipal, county, regional, and other planning
38.28agencies;
38.29(2) accept and disburse grants and other aids for planning purposes from the federal
38.30government and from other public or private sources;
38.31(3) utilize money received under clause (2) for the employment of consultants and
38.32other temporary personnel to assist in the supervision or performance of planning work
38.33supported by money other than state-appropriated money;
38.34(4) enter into contracts with agencies of the federal government, units of local
38.35government or combinations thereof, and with private persons that are necessary in the
38.36performance of the planning assistance function of the commissioner; and
39.1(5) assist any local government unit in filling out application forms for the federal
39.2grants-in-aid.
39.3(d) In furtherance of its planning functions, any city or town, however organized,
39.4may expend money and contract with agencies of the federal government, appropriate
39.5departments of state government, other local units of government, and with private
39.6persons.

39.7    Sec. 8. Minnesota Statutes 2008, section 116J.431, subdivision 1, is amended to read:
39.8    Subdivision 1. Grant program established; purpose. (a) The commissioner shall
39.9make grants to counties or cities to provide up to 50 percent of the capital costs of public
39.10infrastructure necessary for an eligible economic development project. The county or city
39.11receiving a grant must provide for the remainder of the costs of the project, either in cash
39.12or in kind. In-kind contributions may include the value of site preparation other than the
39.13public infrastructure needed for the project.
39.14For purposes of this section, "city" means a statutory or home rule charter city
39.15located outside the metropolitan area, as defined in section 473.121, subdivision 2.
39.16"Public infrastructure" means publicly owned physical infrastructure necessary to
39.17support economic development projects, including, but not limited to, sewers, water
39.18supply systems, utility extensions, streets, wastewater treatment systems, stormwater
39.19management systems, and facilities for pretreatment of wastewater to remove phosphorus.
39.20(b) The purpose of the grants made under this section is to keep or enhance jobs in
39.21the area, increase the tax base, or to expand or create new economic development.
39.22EFFECTIVE DATE.This section is effective the day following final enactment.

39.23    Sec. 9. Minnesota Statutes 2008, section 116J.431, is amended by adding a subdivision
39.24to read:
39.25    Subd. 1a. Definitions. (a) For purposes of this section, the following terms have
39.26the meanings given.
39.27(b) "City" means a statutory or home rule charter city located outside the
39.28metropolitan area, as defined in section 473.121, subdivision 2.
39.29(c) "County" means a county located outside the metropolitan area, as defined in
39.30section 473.121, subdivision 2.
39.31(d) "Public infrastructure" means publicly owned physical infrastructure necessary
39.32to support economic development projects, including, but not limited to, sewers, water
39.33supply systems, utility extensions, streets, wastewater treatment systems, storm water
39.34management systems, and facilities for pretreatment of wastewater to remove phosphorus.
40.1EFFECTIVE DATE.This section is effective the day following final enactment.

40.2    Sec. 10. Minnesota Statutes 2008, section 116J.431, subdivision 2, is amended to read:
40.3    Subd. 2. Eligible projects. An economic development project for which a county or
40.4city may be eligible to receive a grant under this section includes:
40.5(1) manufacturing;
40.6(2) technology;
40.7(3) warehousing and distribution;
40.8(4) research and development;
40.9(5) agricultural processing, defined as transforming, packaging, sorting, or grading
40.10livestock or livestock products into goods that are used for intermediate or final
40.11consumption, including goods for nonfood use; or
40.12(6) industrial park development that would be used by any other business listed
40.13in this subdivision.
40.14EFFECTIVE DATE.This section is effective the day following final enactment.

40.15    Sec. 11. Minnesota Statutes 2008, section 116J.431, subdivision 4, is amended to read:
40.16    Subd. 4. Application. (a) The commissioner must develop forms and procedures
40.17for soliciting and reviewing applications for grants under this section. At a minimum, a
40.18county or city must include in its application a resolution of the county or city council
40.19certifying that the required local match is available. The commissioner must evaluate
40.20complete applications for eligible projects using the following criteria:
40.21(1) the project is an eligible project as defined under subdivision 2;
40.22(2) the project will result in substantial public and private capital investment and
40.23provide substantial economic benefit to the county or city in which the project would
40.24be located;
40.25(3) the project is not relocating substantially the same operation from another
40.26location in the state, unless the commissioner determines the project cannot be reasonably
40.27accommodated within the county or city in which the business is currently located, or the
40.28business would otherwise relocate to another state; and
40.29(4) the project will create or maintain full-time jobs.
40.30(b) The determination of whether to make a grant for a site is within the discretion of
40.31the commissioner, subject to this section. The commissioner's decisions and application of
40.32the priorities are not subject to judicial review, except for abuse of discretion.
40.33EFFECTIVE DATE.This section is effective the day following final enactment.

41.1    Sec. 12. Minnesota Statutes 2008, section 116J.431, subdivision 6, is amended to read:
41.2    Subd. 6. Maximum grant amount. A county or city may receive no more than
41.3$1,000,000 in two years for one or more projects.
41.4EFFECTIVE DATE.This section is effective the day following final enactment.

41.5    Sec. 13. Minnesota Statutes 2008, section 116J.435, subdivision 3, is amended to read:
41.6    Subd. 3. Grant program established. (a) The commissioner shall make
41.7competitive grants to local governmental units to acquire and prepare land on which
41.8public infrastructure required to support an eligible project will be located, including
41.9demolition of structures and remediation of any hazardous conditions on the land, or to
41.10predesign, design, acquire, construct, furnish, and equip public infrastructure required to
41.11support an eligible project. The local governmental unit receiving a grant must provide
41.12for the remainder of the public infrastructure costs. The commissioner may waive
41.13the requirements related to an eligible project under subdivision 2 if a project would
41.14be eligible under this section but for the fact that its location requires infrastructure
41.15improvements to residential development.
41.16(b) The amount of a grant may not exceed the lesser of the cost of the public
41.17infrastructure or 50 percent of the sum of the cost of the public infrastructure plus the cost
41.18of the completed eligible project.
41.19(c) The purpose of the program is to keep or enhance jobs in the area, increase the
41.20tax base, or to expand or create new economic development through the growth of new
41.21bioscience businesses and organizations.

41.22    Sec. 14. [116J.438] MINNESOTA GREEN ENTERPRISE ASSISTANCE.
41.23(a) The commissioner of employment and economic development shall lead a
41.24multiagency project to advise, promote, market, and coordinate state agency collaboration
41.25on green enterprise and green economy projects, as defined in section 116J.437. The
41.26multiagency project must include the commissioners of employment and economic
41.27development, natural resources, agriculture, transportation, and commerce, and the
41.28director of the Pollution Control Agency. The project must involve collaboration with
41.29state agencies, local governments, and the business and agricultural communities. The
41.30objective of the project is to utilize existing state resources to expedite the delivery of
41.31grants, licenses, permits, and other state authorizations and approvals for green economy
41.32projects. The commissioner shall appoint a lead person to coordinate green enterprise
41.33assistance activities.
42.1(b) The commissioner of employment and economic development shall seek out
42.2and may appoint persons from the business community to assist the commissioner in
42.3project activities.
42.4(c) The commissioner may accept gifts, contributions, and in-kind services for the
42.5purposes of this section, under the authority provided in section 116J.035, subdivision
42.61. Any funds received must be placed in a special revenue account for the purposes of
42.7this section.
42.8EFFECTIVE DATE.This section is effective the day following final enactment.

42.9    Sec. 15. Minnesota Statutes 2008, section 116J.554, subdivision 1, is amended to read:
42.10    Subdivision 1. Authority. (a) The commissioner may make a grant to an applicant
42.11development authority to pay for up to 75 percent of the project costs for a qualifying site.
42.12(b) The commissioner may also make a grant to an applicant development authority
42.13to pay up to 75 percent or $50,000, whichever is less, toward the cost of performing
42.14contaminant investigations and the development of a response action plan for a qualifying
42.15site.
42.16(c) The commissioner may also make a grant to an applicant to fill a site that would
42.17represent more than 50 percent of the remaining land in a city suitable for industrial
42.18development if it were properly filled.
42.19(d) The determination of whether to make a grant for a qualifying site is within the
42.20sole discretion of the commissioner, subject to the process provided by this section, and
42.21available unencumbered money in the appropriation. The commissioner's decisions and
42.22application of the priorities under section 116J.555 are not subject to judicial review,
42.23except for abuse of discretion.
42.24(e) The total amount of money provided in grants under paragraph (b) may not
42.25exceed $250,000 $500,000 per fiscal year.
42.26(f) In making grants under paragraph (b), the commissioner shall give priority to
42.27applicants that have not received a grant under paragraph (a) or section 473.252 during
42.28the year ending on the date of application.
42.29EFFECTIVE DATE.This section is effective the day following final enactment.

42.30    Sec. 16. Minnesota Statutes 2008, section 116J.555, subdivision 1, is amended to read:
42.31    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
42.32will exceed the available appropriations and the agency will be able to provide grants to
42.33only some of the applicant development authorities.
43.1    (b) If applications for grants for qualified sites exceed the available appropriations,
43.2the agency shall make grants for sites that, in the commissioner's judgment, provide
43.3the highest return in public benefits for the public costs incurred and that meet all the
43.4requirements provided by law. In making this judgment, the commissioner shall consider
43.5the following factors:
43.6    (1) the recommendations or ranking of projects by the commissioner of the Pollution
43.7Control Agency regarding the potential threat to public health and the environment that
43.8would be reduced or eliminated by completion of each of the response action plans;
43.9    (2) the potential increase in the property tax base of the local taxing jurisdictions,
43.10considered relative to the fiscal needs of the jurisdictions, that will result from
43.11developments that will occur because of completion of each of the response action plans;
43.12    (3) the social value to the community of the cleanup and redevelopment of the site,
43.13including the importance of development of the proposed public facilities on each of
43.14the sites;
43.15    (4) the probability that each site will be cleaned up without use of government
43.16money in the reasonably foreseeable future by considering but not limited to the current
43.17market value of the site versus the cleanup cost;
43.18    (5) the amount of cleanup costs for each site; and
43.19    (6) the amount of the commitment of municipal or other local resources to pay for
43.20the cleanup costs.
43.21    The factors are not listed in a rank order of priority; rather the commissioner may
43.22weigh each factor, depending upon the facts and circumstances, as the commissioner
43.23considers appropriate. The commissioner may consider other factors that affect the net
43.24return of public benefits for completion of the response action plan. The commissioner,
43.25notwithstanding the listing of priorities and the goal of maximizing the return of public
43.26benefits, shall make grants that distribute available money to sites both within and outside
43.27of the metropolitan area. The commissioner shall provide a written statement of the
43.28supporting reasons for each grant. Unless sufficient applications are not received for
43.29qualifying sites outside of the metropolitan area, at least 25 50 percent of the money
43.30provided as grants must be made for sites located outside of the metropolitan area.
43.31EFFECTIVE DATE.This section is effective the day following final enactment.

43.32    Sec. 17. Minnesota Statutes 2008, section 116J.68, subdivision 2, is amended to read:
43.33    Subd. 2. Duties. The bureau shall:
44.1(a) (1) provide information and assistance with respect to all aspects of business
44.2planning and business management related to the start-up, operation, or expansion of
44.3a small business in Minnesota;
44.4(b) (2) refer persons interested in the start-up, operation, or expansion of a small
44.5business in Minnesota to assistance programs sponsored by federal agencies, state
44.6agencies, educational institutions, chambers of commerce, civic organizations, community
44.7development groups, private industry associations, and other organizations or to the
44.8business assistance referral system established by the Minnesota Project Outreach
44.9Corporation;
44.10(c) (3) plan, develop, and implement a master file of information on small business
44.11assistance programs of federal, state, and local governments, and other public and private
44.12organizations so as to provide comprehensive, timely information to the bureau's clients;
44.13(d) (4) employ staff with adequate and appropriate skills and education and training
44.14for the delivery of information and assistance;
44.15(e) (5) seek out and utilize, to the extent practicable, contributed expertise and
44.16services of federal, state, and local governments, educational institutions, and other public
44.17and private organizations;
44.18(f) (6) maintain a close and continued relationship with the director of the
44.19procurement program within the Department of Administration so as to facilitate the
44.20department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the
44.21small targeted group business and economically disadvantaged business program of the
44.22state;
44.23(g) (7) develop an information system which will enable the commissioner and other
44.24state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
44.25business development and growth in the state. All executive branch agencies of state
44.26government and the secretary of state shall to the extent practicable, assist the bureau in
44.27the development and implementation of the information system;
44.28(h) (8) establish and maintain a toll free telephone number so that all small business
44.29persons anywhere in the state can call the bureau office for assistance. An outreach
44.30program shall be established to make the existence of the bureau well known to its
44.31potential clientele throughout the state. If the small business person requires a referral to
44.32another provider the bureau may use the business assistance referral system established by
44.33the Minnesota Project Outreach Corporation;
44.34(i) (9) conduct research and provide data as required by the state legislature;
44.35(j) (10) develop and publish material on all aspects of the start-up, operation, or
44.36expansion of a small business in Minnesota;
45.1(k) (11) collect and disseminate information on state procurement opportunities,
45.2including information on the procurement process;
45.3(l) (12) develop a public awareness program through the use of newsletters, personal
45.4contacts, and electronic and print news media advertising about state assistance programs
45.5for small businesses, including those programs specifically for socially disadvantaged
45.6small business persons;
45.7(m) (13) enter into agreements with the federal government and other public and
45.8private entities to serve as the statewide coordinator or host agency for the federal small
45.9business development center program under United States Code, title 15, section 648; and
45.10(n) (14) assist providers in the evaluation of their programs and the assessment of
45.11their service area needs. The bureau may establish model evaluation techniques and
45.12performance standards for providers to use.

45.13    Sec. 18. Minnesota Statutes 2008, section 116J.8731, subdivision 2, is amended to read:
45.14    Subd. 2. Administration. The commissioner shall administer the fund as part of
45.15the Small Cities Development Block Grant Program. Funds shall be made available to
45.16local communities and recognized Indian tribal governments in accordance with the rules
45.17adopted for economic development grants in the small cities community development
45.18block grant program, except that all units of general purpose local government are eligible
45.19applicants for Minnesota investment funds. The commissioner may also make funds
45.20available within the department for eligible expenditures under subdivision 3, clause
45.21(2). A home rule charter or statutory city, county, or town may loan or grant money
45.22received from repayment of funds awarded under this section to a regional development
45.23commission, other regional entity, or statewide community capital fund as determined by
45.24the commissioner, to capitalize or to provide the local match required for capitalization of
45.25a regional or statewide revolving loan fund.

45.26    Sec. 19. Minnesota Statutes 2008, section 116J.8731, subdivision 3, is amended to read:
45.27    Subd. 3. Eligible expenditures. The money appropriated for this section may
45.28be used to provide fund:
45.29(1) grants for infrastructure, loans, loan guarantees, interest buy-downs, and other
45.30forms of participation with private sources of financing, provided that a loan to a private
45.31enterprise must be for a principal amount not to exceed one-half of the cost of the project
45.32for which financing is sought.; and
45.33(2) strategic investments in renewable energy market development, such as low
45.34interest loans for renewable energy equipment manufacturing, training grants to support
46.1renewable energy workforce, development of a renewable energy supply chain that
46.2represents and strengthens the industry throughout the state, and external marketing to
46.3garner more national and international investment into Minnesota's renewable sector.
46.4Expenditures in external marketing for renewable energy market development are not
46.5subject to the limitations in clause (1).

46.6    Sec. 20. [116J.997] PROGRAM ACCOUNTABILITY REQUIREMENTS.
46.7    Subdivision 1. Accountability measurement. By October 1, 2009, the
46.8commissioner of employment and economic development shall develop a uniform
46.9accountability report for economic development or workforce-related programs funded in
46.10whole or in part by state or federal funds. The commissioner shall also develop a formula
46.11for measuring the return on investment for each program and a comparison of the return
46.12on investment of all programs funded in whole or in part by state or federal funds. The
46.13requirements of this section apply to programs administered directly by the commissioner
46.14or administered by other organizations under a grant made by the department. The report
46.15and formula required by this subdivision shall be submitted to the chairs of the committees
46.16of the house of representatives and senate having jurisdiction over economic development
46.17and workforce policy and finance by October 15, 2009, for review and comment.
46.18    Subd. 2. Report to the legislature. By December 31 of each even-numbered year
46.19the commissioner must report to the committees of the house of representatives and the
46.20senate having jurisdiction over economic development and workforce policy and finance
46.21the following information for each program subject to the requirements of subdivision 1:
46.22(1) the target population;
46.23(2) the number of jobs affected by the program, including the number of net new
46.24jobs created in the state and the average annual wage per job;
46.25(3) the number of individuals leaving the unemployment compensation program as
46.26a result of the program;
46.27(4) the number of individuals leaving the Minnesota Family Investment Program
46.28support as a result of the program;
46.29(5) the region of the state in which the program operated;
46.30(6) the amount of state or federal funds allocated to the program;
46.31(7) the return on investment as calculated by the formula developed by the
46.32commissioner; and
46.33(8) the dollar amount and percentage of the total grant used for administrative
46.34expenses.
47.1    Subd. 3. Report to the commissioner. Before receiving additional state funds, a
47.2recipient of a grant made by or through the department must report to the commissioner by
47.3September 1 of each even-numbered year on each of the clauses in subdivision 2 for each
47.4program it administers. The report must be in a format prescribed by the commissioner.
47.5Beginning November 1, 2009, the commissioner shall provide notice to grant
47.6applicants and recipients regarding the data collection and reporting requirements under
47.7this subdivision and must provide technical assistance to applicants and recipients to assist
47.8in complying with the requirements of this subdivision.
47.9    Subd. 4. Biennial budget request. The information collected and reported under
47.10subdivisions 2 and 3 shall be included in budgets submitted to the legislature under
47.11section 16A.11.
47.12EFFECTIVE DATE.This section is effective the day following final enactment.

47.13    Sec. 21. Minnesota Statutes 2008, section 116L.03, subdivision 5, is amended to read:
47.14    Subd. 5. Terms. The terms of appointed members shall be for four years except for
47.15the initial appointments. The initial appointments of the governor shall have the following
47.16terms: two members each for one, two, three, and four years. No member shall serve
47.17more than two terms, and no person shall be appointed after December 31, 2001, for any
47.18term that would cause that person to serve a total of more than eight years on the board.
47.19Compensation for board members is as provided in section 15.0575, subdivision 3.

47.20    Sec. 22. Minnesota Statutes 2008, section 116L.05, subdivision 5, is amended to read:
47.21    Subd. 5. Use of workforce development funds. After March 1 of any fiscal year,
47.22the board may use workforce development funds for the purposes outlined in sections
47.23116L.02, 116L.04, and 116L.10 to 116L.14, or to provide incumbent worker training
47.24services under section 116L.18 if the following conditions have been met:
47.25    (1) the board examines relevant economic indicators, including the projected
47.26number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of
47.27declining and expanding industries, the number of initial applications for and the number
47.28of exhaustions of unemployment benefits, job vacancy data, and any additional relevant
47.29information brought to the board's attention;
47.30    (2) the board accounts for all allocations made in section 116L.17, subdivision 2;
47.31    (3) based on the past expenditures and projected revenue, the board estimates future
47.32funding needs for services under section 116L.17 for the remainder of the current fiscal
47.33year and the next fiscal year;
48.1    (4) the board determines there will be unspent funds after meeting the needs of
48.2dislocated workers in the current fiscal year and there will be sufficient revenue to meet
48.3the needs of dislocated workers in the next fiscal year; and
48.4    (5) the board reports its findings in clauses (1) to (4) to the chairs of legislative
48.5committees with jurisdiction over the workforce development fund, to the commissioners
48.6of revenue and finance, and to the public.

48.7    Sec. 23. Minnesota Statutes 2008, section 116L.20, subdivision 1, is amended to read:
48.8    Subdivision 1. Determination and collection of special assessment. (a) In addition
48.9to amounts due from an employer under the Minnesota unemployment insurance program,
48.10each employer, except an employer making reimbursements is liable for a special
48.11assessment levied at the rate of .10 .12 percent per year on all taxable wages, as defined in
48.12section 268.035, subdivision 24, except that effective July 1, 2009, until June 30, 2011, the
48.13special assessment shall be levied at a rate of .14 percent per year on all taxable wages as
48.14defined in section 268.035, subdivision 24. The assessment shall become due and be paid
48.15by each employer on the same schedule and in the same manner as other amounts due
48.16from an employer under section 268.051, subdivision 1.
48.17    (b) The special assessment levied under this section shall be subject to the same
48.18requirements and collection procedures as any amounts due from an employer under the
48.19Minnesota unemployment insurance program.

48.20    Sec. 24. Minnesota Statutes 2008, section 116L.362, subdivision 1, is amended to read:
48.21    Subdivision 1. Generally. (a) The commissioner shall make grants to eligible
48.22organizations for programs to provide education and training services to targeted youth.
48.23The purpose of these programs is to provide specialized training and work experience for
48.24targeted youth who have not been served effectively by the current educational system.
48.25The programs are to include a work experience component with work projects that
48.26result in the rehabilitation, improvement, or construction of (1) residential units for the
48.27homeless, or; (2) improvements to the energy efficiency and environmental health of
48.28residential units and other green jobs purposes; (3) facilities to support community garden
48.29projects; or (4) education, social service, or health facilities which are owned by a public
48.30agency or a private nonprofit organization.
48.31(b) Eligible facilities must principally provide services to homeless or very low
48.32income individuals and families, and include the following:
48.33(1) Head Start or day care centers;
48.34(2) homeless, battered women, or other shelters;
49.1(3) transitional housing;
49.2(4) youth or senior citizen centers; and
49.3(5) community health centers.; and
49.4(6) community garden facilities.
49.5Two or more eligible organizations may jointly apply for a grant. The commissioner
49.6shall administer the grant program.

49.7    Sec. 25. Minnesota Statutes 2008, section 116L.364, subdivision 3, is amended to read:
49.8    Subd. 3. Work experience component. A work experience component must be
49.9included in each program. The work experience component must provide vocational skills
49.10training in an industry where there is a viable expectation of job opportunities. A training
49.11subsidy, living allowance, or stipend, not to exceed an amount equal to 100 percent of the
49.12poverty line for a family of two as defined in United States Code, title 42, section 673,
49.13paragraph (2), may be provided to program participants. The wage or stipend must be
49.14provided to participants who are recipients of public assistance in a manner or amount
49.15which will not reduce public assistance benefits. The work experience component must be
49.16designed so that work projects result in (1) the expansion or improvement of residential
49.17units for homeless persons and very low income families, or ; (2) improvements to the
49.18energy efficiency and environmental health of residential units; (3) facilities to support
49.19community garden projects; or (4) rehabilitation, improvement, or construction of eligible
49.20education, social service, or health facilities that principally serve homeless or very low
49.21income individuals and families. Any work project must include direct supervision by
49.22individuals skilled in each specific vocation. Program participants may earn credits
49.23toward the completion of their secondary education from their participation in the work
49.24experience component.

49.25    Sec. 26. Minnesota Statutes 2008, section 116L.871, subdivision 1, is amended to read:
49.26    Subdivision 1. Responsibility and certification. (a) Unless prohibited by federal
49.27law or otherwise determined by state law, a local service unit is responsible for the
49.28delivery of employment and training services. As of July 1, 1998, Employment and
49.29training services may be delivered by certified employment and training service providers.
49.30(b) The local service unit's employment and training service provider must meet the
49.31certification standards in this subdivision if the county requests that they be certified
49.32to deliver any of the following employment and training services and programs: wage
49.33subsidies; general assistance grant diversion; food stamp employment and training
49.34programs; community work experience programs; and MFIP employment services.
50.1(c) The commissioner shall certify a local service unit's service provider to provide
50.2these employment and training services and programs if the commissioner determines
50.3that the provider has:
50.4(1) past experience in direct delivery of the programs specified in paragraph (b);
50.5(2) staff capabilities and qualifications, including adequate staff to provide timely
50.6and effective services to clients, and proven staff experience in providing specific services
50.7such as assessments, career planning, job development, job placement, support services,
50.8and knowledge of community services and educational resources;
50.9(3) demonstrated effectiveness in providing services to public assistance recipients
50.10and other economically disadvantaged clients; and
50.11(4) demonstrated administrative capabilities, including adequate fiscal and
50.12accounting procedures, financial management systems, participant data systems, and
50.13record retention procedures.
50.14(d) When the only service provider that meets the criterion in paragraph (c), clause
50.15(1), has been decertified, according to subdivision 1a, in that local service unit, the
50.16following criteria shall be substituted: past experience in direct delivery of multiple,
50.17coordinated, nonduplicative services, including outreach, assessments, identification of
50.18client barriers, employability development plans, and provision or referral to support
50.19services.

50.20    Sec. 27. Minnesota Statutes 2008, section 116L.96, is amended to read:
50.21116L.96 DISPLACED HOMEMAKER PROGRAMS.
50.22The commissioner of economic security employment and economic development
50.23may enter into arrangements with existing private or nonprofit organizations and agencies
50.24with experience in dealing with displaced homemakers to provide counseling and
50.25training services. The commissioner shall assist displaced homemakers in applying for
50.26appropriate welfare programs and shall take welfare allowances received into account
50.27in setting the stipend level. Income received as a stipend under these programs shall
50.28be totally disregarded for purposes of determining eligibility for and the amount of a
50.29general assistance grant.

50.30    Sec. 28. Minnesota Statutes 2008, section 116O.115, subdivision 2, is amended to read:
50.31    Subd. 2. Qualified company. A company is qualified to receive assistance under
50.32the small business growth acceleration program if it the company is a manufacturing
50.33company or a manufacturing-related service company that employs 100 250 or fewer
50.34full-time equivalent employees.

51.1    Sec. 29. Minnesota Statutes 2008, section 116O.115, subdivision 4, is amended to read:
51.2    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish
51.3procedures for determining which applicants for assistance under the small business
51.4growth acceleration program will receive program funding. Funding shall be awarded
51.5only to accelerate a qualified company's adoption of needed technology or business
51.6improvements when the corporation concludes that it is unlikely the improvements could
51.7be accomplished in any other way.
51.8    (b) The maximum amount of funds awarded to a qualified company under the small
51.9business growth acceleration program for a particular project must not exceed 50 75
51.10percent of the total cost of a project and must not under any circumstances exceed $25,000
51.11during a calendar year. The corporation shall not award to a qualified company small
51.12business growth acceleration program funds in excess of $50,000 per year.
51.13    (c) Any funds awarded to a qualified company under the small business growth
51.14acceleration program must be used for business services and products that will enhance the
51.15operation of the company. These business services and products must come either directly
51.16from the corporation or from a network of expert providers identified and approved by
51.17the corporation. No company receiving small business growth acceleration program
51.18funds may use the funds for refinancing, overhead costs, new construction, renovation,
51.19equipment, or computer hardware.
51.20    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
51.21documented according to requirements of the corporation.
51.22(e) Receipt of funds from an award under this section is contingent upon a
51.23contribution of funds by the qualified company to the project, as follows:
51.24(1) a company with under 50 employees must contribute one dollar for every three
51.25dollars of program assistance awarded;
51.26(2) a company with 50 to 100 employees must contribute one dollar for every one
51.27dollar of program assistance awarded; and
51.28(3) a company with 101 to 250 employees must contribute three dollars for every
51.29one dollar of program assistance awarded.

51.30    Sec. 30. Minnesota Statutes 2008, section 123A.08, subdivision 1, is amended to read:
51.31    Subdivision 1. Outside sources for resources and services. A center may accept:
51.32(1) resources and services from postsecondary institutions serving center pupils;
51.33(2) resources from Job Training Partnership Act Workforce Investment Act of 1998,
51.34Public Law 105-220 programs, including funding for jobs skills training for various
51.35groups and the percentage reserved for education;
52.1(3) resources from the Department of Human Services and county welfare funding;
52.2(4) resources from a local education and employment transitions partnership; or
52.3(5) private resources, foundation grants, gifts, corporate contributions, and other
52.4grants.

52.5    Sec. 31. Minnesota Statutes 2008, section 124D.49, subdivision 3, is amended to read:
52.6    Subd. 3. Local education and employment transitions systems. A local education
52.7and employment transitions partnership must assess the needs of employers, employees,
52.8and learners, and develop a plan for implementing and achieving the objectives of a local
52.9or regional education and employment transitions system. The plan must provide for a
52.10comprehensive local system for assisting learners and workers in making the transition
52.11from school to work or for retraining in a new vocational area. The objectives of a local
52.12education and employment transitions system include:
52.13(1) increasing the effectiveness of the educational programs and curriculum of
52.14elementary, secondary, and postsecondary schools and the work site in preparing students
52.15in the skills and knowledge needed to be successful in the workplace;
52.16(2) implementing learner outcomes for students in grades kindergarten through 12
52.17designed to introduce the world of work and to explore career opportunities, including
52.18nontraditional career opportunities;
52.19(3) eliminating barriers to providing effective integrated applied learning,
52.20service-learning, or work-based curriculum;
52.21(4) increasing opportunities to apply academic knowledge and skills, including
52.22skills needed in the workplace, in local settings which include the school, school-based
52.23enterprises, postsecondary institutions, the workplace, and the community;
52.24(5) increasing applied instruction in the attitudes and skills essential for success in
52.25the workplace, including cooperative working, leadership, problem-solving, and respect
52.26for diversity;
52.27(6) providing staff training for vocational guidance counselors, teachers, and other
52.28appropriate staff in the importance of preparing learners for the transition to work, and in
52.29methods of providing instruction that incorporate applied learning, work-based learning,
52.30and service-learning experiences;
52.31(7) identifying and enlisting local and regional employers who can effectively
52.32provide work-based or service-learning opportunities, including, but not limited to,
52.33apprenticeships, internships, and mentorships;
52.34(8) recruiting community and workplace mentors including peers, parents, employers
52.35and 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.
56.12Authority is hereby given to (b) 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 to develop an economic development
60.6strategy to guide job and business growth in Minnesota and to strengthen the state's
60.7economy is established. The working group consists of six members of the house of
60.8representatives and three members of the public appointed by the speaker of the house and
60.9six members of the senate and three members of the public appointed by the subcommittee
60.10on committees of the senate. The working group is responsible to review and analyze
60.11Minnesota's current economic development strategy and make recommendations on
60.12improvements according to this section. The Legislative Coordinating Commission under
60.13Minnesota Statutes, section 3.303, must provide staff support for the working group.
60.14(b) The working group must conduct an academic and practitioner led effort to:
60.15(1) perform best practices research on economic development principles to apply
60.16to Minnesota;
60.17(2) assess Minnesota's current economic development strategies, including tax
60.18incentives and appropriation funded programs and grants to determine how well these
60.19strategies are working and how they compare to best practices;
60.20(3) develop a comprehensive strategy to move Minnesota's economy forward;
60.21(4) develop a set of benchmarks to measure Minnesota's investments in economic
60.22development strategies; and
60.23(5) recommend the best structure to govern and lead Minnesota's economic
60.24development strategy.
60.25(c) Appointments to the working group shall be made by June 1, 2009, and the
60.26first meeting shall be convened no later than July 1, 2009. The task force shall elect
60.27a chair from among its members at the first meeting. The working group may contract
60.28for research studies and assistance necessary to fulfill its responsibilities. The working
60.29group must report to the committees of the legislature with responsibility for economic
60.30development by February 15, 2010.

60.31    Sec. 42. APPROPRIATION; GREEN ENTERPRISE ASSISTANCE.
60.32The remaining balance of the fiscal year 2009 special revenue fund appropriation for
60.33the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3, subdivision
60.344, is transferred and appropriated to the commissioner of employment and economic
61.1development for the purposes of green enterprise assistance under Minnesota Statutes,
61.2section 116J.438. This appropriation is available until spent.

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

61.7    Sec. 44. REPEALER.
61.8Minnesota Statutes 2008, sections 116J.402; 116J.413; 116J.431, subdivision 5;
61.9116J.58, subdivision 1; 116J.59; 116J.61; 116J.656; 116L.16; 116L.88; and 116U.65, are
61.10repealed.
61.11EFFECTIVE DATE.This section is effective the day following final enactment.

61.12ARTICLE 3
61.13UNEMPLOYMENT INSURANCE POLICY

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

62.8    Sec. 2. Minnesota Statutes 2008, section 268.053, subdivision 1, is amended to read:
62.9    Subdivision 1. Election. (a) Any nonprofit organization that has employees in
62.10covered employment must pay taxes on a quarterly basis in accordance with section
62.11268.051 unless it elects to make reimbursements to the trust fund the amount of
62.12unemployment benefits charged to its reimbursable account under section 268.047.
62.13    The organization may elect to make reimbursements for a period of not less than
62.14two calendar years beginning with the date that the organization was determined to be an
62.15employer with covered employment by filing a notice of election not later than 30 calendar
62.16days after the date of the determination.
62.17    (b) Any nonprofit organization that makes an election will continue to be liable for
62.18reimbursements until it files a notice terminating its election not later than 30 calendar
62.19days before the beginning of the calendar year the termination is to be effective.
62.20    (c) A nonprofit organization that has been making reimbursements that files a notice
62.21of termination of election must be assigned the new employer tax rate under section
62.22268.051, subdivision 5 , for the calendar year of the termination of election and unless or
62.23until it qualifies for an experience rating under section 268.051, subdivision 3.
62.24    (d) Any nonprofit organization that has been paying taxes may elect to make
62.25reimbursements by filing no less than 30 calendar days before January 1 of any calendar
62.26year a notice of election. Upon election, the commissioner shall establish a reimbursable
62.27account for the nonprofit organization. An election is allowed only if the nonprofit
62.28organization has, since the beginning of the experience rating period under section
62.29268.051, subdivision 3, paid taxes equal to or more than 125 percent of the unemployment
62.30benefits used in computing the experience rating. In addition, any unemployment benefits
62.31paid after the experience rating period are transferred to the new reimbursable account
62.32of the nonprofit organization. If the amount of taxes paid since the beginning of the
62.33experience rating period exceeds 125 percent of the amount of unemployment benefits
62.34paid 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.

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

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

67.18    Sec. 10. [268.088] BENEFITS PAID DURING CERTAIN VOLUNTARY
67.19UNEMPLOYMENT.
67.20(a) An applicant who elects to become temporarily unemployed in order to avoid
67.21the layoff of another employee with the applicant's employer due to lack of work is
67.22not ineligible for benefits under the leave of absence provisions of section 268.085,
67.23subdivision 13a, nor ineligible under the quit provisions of section 268.095, if:
67.24(1) the election is authorized under a collective bargaining agreement or written
67.25employer policy;
67.26(2) the employer has accepted the applicant's election;
67.27(3) the employer provides a written certification that is provided to the department
67.28that the applicant's election prevented another employee with the employer from being
67.29laid off due to lack of work; and
67.30(4) both the applicant and the employer, at the time of the election, expect the
67.31applicant's unemployment from the employer to be temporary.
67.32(b) In addition to the requirements of paragraph (a), for unemployment benefits to be
67.33payable, an applicant must meet all the other benefit eligibility requirements under this
67.34chapter, 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 11, 13, and 14 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 11 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 15 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 AND PRESUMPTION OF ELIGIBILITY.
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. Presumption of eligibility. An applicant is presumed to be eligible
72.33for unemployment benefits unless precluded by statute from receiving benefits. In
73.1determining eligibility or ineligibility for benefits, any statutory provision that would
73.2preclude 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(f) A full-time unemployment law judge hired after July 1, 2009, must be paid a
95.32salary of 75 percent of the salary set under section 15A.083, subdivision 7, for a workers'
95.33compensation judge. A full-time senior unemployment law judge hired after July 1, 2009,
95.34must be paid a salary of 80 percent of the salary set under section 15A.083, subdivision 7,
95.35for a workers' compensation judge. The chief unemployment law judge must be paid a
96.1salary of 85 percent of the salary set under section 15A.083, subdivision 7, for a workers'
96.2compensation judge.

96.3    Sec. 35. Minnesota Statutes 2008, section 268.105, subdivision 2, is amended to read:
96.4    Subd. 2. Request for reconsideration. (a) Any involved applicant, involved
96.5employer, or the commissioner may, within 20 calendar days of the sending of the
96.6unemployment law judge's decision under subdivision 1, file a request for reconsideration
96.7asking the unemployment law judge to reconsider that decision. Section 268.103 applies
96.8to a request for reconsideration. If a request for reconsideration is timely filed, the
96.9unemployment law judge must issue an order:
96.10    (1) modifying the findings of fact and decision issued under subdivision 1;
96.11    (2) setting aside the findings of fact and decision issued under subdivision 1 and
96.12directing that an additional evidentiary hearing be conducted under subdivision 1; or
96.13    (3) affirming the findings of fact and decision issued under subdivision 1.
96.14    (b) Upon a timely request for reconsideration having been filed, the department must
96.15send a notice, by mail or electronic transmission, to all involved parties that a request for
96.16reconsideration has been filed. The notice must inform the involved parties:
96.17    (1) of the opportunity to provide comment on the request for reconsideration, and
96.18the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits
96.19offered or received into evidence at the evidentiary hearing;
96.20    (2) that providing specific comments as to a perceived factual or legal error in the
96.21decision, or a perceived error in procedure during the evidentiary hearing, will assist the
96.22unemployment law judge in deciding the request for reconsideration;
96.23    (3) of the right to obtain any comments and submissions provided by the other
96.24involved party regarding the request for reconsideration; and
96.25    (4) of the provisions of paragraph (c) regarding additional evidence.
96.26This paragraph does not apply if paragraph (d) is applicable.
96.27    (c) In deciding a request for reconsideration, the unemployment law judge must not,
96.28except for purposes of determining whether to order an additional evidentiary hearing,
96.29consider any evidence that was not submitted at the evidentiary hearing conducted under
96.30subdivision 1.
96.31    The unemployment law judge must order an additional evidentiary hearing if an
96.32involved party shows that evidence which was not submitted at the evidentiary hearing:
96.33(1) would likely change the outcome of the decision and there was good cause for not
96.34having previously submitted that evidence; or (2) would show that the evidence that was
97.1submitted at the evidentiary hearing was likely false and that the likely false evidence had
97.2an effect on the outcome of the decision.
97.3    (d) If the involved applicant or involved employer who filed the request for
97.4reconsideration failed to participate in the evidentiary hearing conducted under subdivision
97.51, an order setting aside the findings of fact and decision and directing that an additional
97.6evidentiary hearing be conducted must be issued if the party who failed to participate had
97.7good cause for failing to do so. In the notice that a request for reconsideration has been
97.8filed, the party who failed to participate must be informed of the requirement, and provided
97.9the opportunity, to show good cause for failing to participate. If the unemployment
97.10law judge determines that good cause for failure to participate has not been shown, the
97.11unemployment law judge must state that in the order issued under paragraph (a).
97.12    Submission of a written statement at the evidentiary hearing under subdivision 1
97.13does not constitute participation for purposes of this paragraph.
97.14    All involved parties must be informed of this paragraph with the notice of appeal
97.15and notice of hearing provided for in subdivision 1.
97.16    "Good cause" for purposes of this paragraph is a reason that would have prevented a
97.17reasonable person acting with due diligence from participating at the evidentiary hearing.
97.18    (e) A request for reconsideration must be decided by the unemployment law judge
97.19who issued the findings of fact and decision under subdivision 1 unless that unemployment
97.20law judge: (1) is no longer employed by the department; (2) is on an extended or indefinite
97.21leave; (3) has been disqualified from the proceedings on the judge's own motion; or (4)
97.22has been removed from the proceedings as provided for under subdivision 1 or applicable
97.23rule by the chief unemployment law judge.
97.24    (f) The unemployment law judge must send to any involved applicant or involved
97.25employer, by mail or electronic transmission, the order issued under this subdivision. An
97.26order modifying the previously issued findings of fact and decision or an order affirming
97.27the previously issued findings of fact and decision is the final department decision on the
97.28matter and is final and binding on the involved applicant and involved employer unless
97.29judicial review is sought under subdivision 7.

97.30    Sec. 36. Minnesota Statutes 2008, section 268.105, subdivision 3a, is amended to read:
97.31    Subd. 3a. Decisions. (a) If an unemployment law judge's decision or order
97.32allows unemployment benefits to an applicant, the unemployment benefits must be paid
97.33regardless of any request for reconsideration or any appeal to the Minnesota Court of
97.34Appeals having been filed.
98.1    (b) If an unemployment law judge's decision or order modifies or reverses a
98.2determination, or prior decision of the unemployment law judge, allowing unemployment
98.3benefits to an applicant, any benefits paid in accordance with the determination, or
98.4prior decision of the unemployment law judge, is considered an overpayment of those
98.5unemployment benefits. A decision or order issued under this section that results in an
98.6overpayment of unemployment benefits must set out the amount of the overpayment and
98.7the requirement under section 268.18, subdivision 1, that the overpaid unemployment
98.8benefits must be repaid.
98.9    (c) If an unemployment law judge's order under subdivision 2 allows unemployment
98.10benefits to an applicant under section 268.095 because of a quit or discharge and the
98.11unemployment law judge's decision is reversed by the Minnesota Court of Appeals or
98.12the Supreme Court of Minnesota, the applicant cannot be held ineligible for any of
98.13the unemployment benefits paid the applicant and it is not considered an overpayment
98.14of those unemployment benefits under section 268.18, subdivision 1. The effect of the
98.15court's reversal is the application of section 268.047, subdivision 3, in computing the
98.16future tax rate of the employer.
98.17    (d) If an unemployment law judge, under subdivision 2, orders the taking of
98.18additional evidence, the unemployment law judge's prior decision must continue to be
98.19enforced until new findings of fact and decision are made by the unemployment law judge.

98.20    Sec. 37. Minnesota Statutes 2008, section 268.105, subdivision 4, is amended to read:
98.21    Subd. 4. Oaths; subpoenas. An unemployment law judge has authority to
98.22administer oaths and affirmations, take depositions, and issue subpoenas to compel the
98.23attendance of witnesses and the production of documents and other personal property
98.24considered necessary as evidence in connection with the subject matter of an evidentiary
98.25hearing.
98.26The unemployment law judge must give full consideration to a request for a
98.27subpoena and must not unreasonably deny a request for a subpoena. If a subpoena request
98.28is initially denied, the unemployment law judge must, on the unemployment law judge's
98.29own motion, reconsider that request during the evidentiary hearing and rule on whether
98.30the request was properly denied. If the request was not properly denied, the evidentiary
98.31hearing must be continued for issuance of the subpoena. The subpoenas are enforceable
98.32through the district court in Ramsey County. Witnesses subpoenaed, other than an involved
98.33applicant or involved employer or officers and employees of an involved employer, must
98.34be paid by the department the same witness fees as in a civil action in district court.

99.1    Sec. 38. Minnesota Statutes 2008, section 268.105, subdivision 5, is amended to read:
99.2    Subd. 5. Use of evidence; data privacy. (a) All testimony at any evidentiary
99.3hearing conducted under subdivision 1 must be recorded. A copy of any recorded
99.4testimony and exhibits offered or received into evidence at the hearing must, upon
99.5request, be furnished to a party at no cost during the time period for filing a request for
99.6reconsideration or while a request for reconsideration is pending.
99.7    (b) Regardless of any provision of law to the contrary, if recorded testimony and
99.8exhibits received into evidence at the evidentiary hearing are not requested during the time
99.9period for filing a request for reconsideration, or while a request for reconsideration is
99.10pending, during the time for filing any appeal under subdivision 7, or during the pendency
99.11thereof, that testimony and other evidence may later be made available only under a
99.12district court order. A subpoena is not considered a district court order.
99.13    (c) Testimony obtained under subdivision 1, may not be used or considered for any
99.14purpose, including impeachment, in any civil, administrative, or contractual proceeding,
99.15except by a local, state, or federal human rights agency with enforcement powers, unless
99.16the proceeding is initiated by the department.

99.17    Sec. 39. Minnesota Statutes 2008, section 268.115, subdivision 5, is amended to read:
99.18    Subd. 5. Maximum amount of extended unemployment benefits. The maximum
99.19amount of extended unemployment benefits available to an applicant is 50 percent of the
99.20maximum amount of regular unemployment benefits available in the benefit year, rounded
99.21down to the next lower whole dollar. If the total rate of unemployment computed under
99.22subdivision 1, clause (2)(ii), equaled or exceeded eight percent, the maximum amount
99.23of extended unemployment benefits available is 80 percent of the maximum amount of
99.24regular unemployment benefits available in the benefit year.

99.25    Sec. 40. Minnesota Statutes 2008, section 268.125, subdivision 5, is amended to read:
99.26    Subd. 5. Maximum amount of unemployment benefits. The maximum amount
99.27of additional unemployment benefits available in the applicant's benefit year is one-half
99.28of the applicant's maximum amount of regular unemployment benefits available under
99.29section 268.07, subdivision 2, rounded down to the next lower whole dollar. Extended
99.30unemployment benefits paid and unemployment benefits paid under any federal law other
99.31than regular unemployment benefits must be deducted from the maximum amount of
99.32additional unemployment benefits available.

99.33    Sec. 41. Minnesota Statutes 2008, section 268.135, subdivision 4, is amended to read:
100.1    Subd. 4. Weekly benefit amount. (a) An applicant who is eligible for shared work
100.2benefits is paid an amount equal to the regular weekly unemployment benefit amount
100.3multiplied by the nearest full percentage of reduction of the applicant's regular weekly
100.4hours of work as set in the plan. The benefit payment, if not a whole dollar must be
100.5rounded down to the next lower whole dollar.
100.6    (b) The deductible earnings provisions of section 268.085, subdivision 5, must not
100.7apply to earnings from the shared work employer of an applicant eligible for shared work
100.8benefits unless the resulting amount would be less than the regular weekly unemployment
100.9benefit amount the applicant would otherwise be eligible for without regard to shared
100.10work benefits.
100.11    (c) An applicant is not eligible for shared work benefits for any week that
100.12employment is performed for the shared work employer in excess of the reduced hours
100.13set forth in the plan.

100.14    Sec. 42. Minnesota Statutes 2008, section 268.145, subdivision 1, is amended to read:
100.15    Subdivision 1. Notification. (a) Upon filing an application for unemployment
100.16benefits, the applicant must be informed that:
100.17    (1) unemployment benefits are subject to federal and state income tax;
100.18    (2) there are requirements for filing estimated tax payments;
100.19    (3) the applicant may elect to have federal income tax withheld from unemployment
100.20benefits;
100.21    (4) if the applicant elects to have federal income tax withheld, the applicant may, in
100.22addition, elect to have Minnesota state income tax withheld; and
100.23    (5) at any time during the benefit year the applicant may change a prior election.
100.24    (b) If an applicant elects to have federal income tax withheld, the commissioner
100.25shall must deduct ten percent for federal income tax, rounded down to the next lower
100.26whole dollar. If an applicant also elects to have Minnesota state income tax withheld, the
100.27commissioner shall must make an additional five percent deduction for state income
100.28tax, rounded down to the next lower whole dollar. Any amounts deducted or offset under
100.29sections 268.155, 268.18, and 268.184 have priority over any amounts deducted under this
100.30section. Federal income tax withholding has priority over state income tax withholding.
100.31    (c) An election to have income tax withheld may not be retroactive and only applies
100.32to unemployment benefits paid after the election.

100.33    Sec. 43. Minnesota Statutes 2008, section 268.18, subdivision 1, is amended to read:
101.1    Subdivision 1. Nonfraud overpayment. (a) Any applicant who (1) because of a
101.2determination or amended determination issued under section 268.07 or 268.101, or any
101.3other section of this chapter, or (2) because of an appeal decision or order under section
101.4268.105 , has received any unemployment benefits that the applicant was held not entitled
101.5to, must promptly repay the unemployment benefits to the trust fund.
101.6    (b) If the applicant fails to repay the unemployment benefits overpaid, the
101.7commissioner may offset from any future unemployment benefits otherwise payable the
101.8amount of the overpayment. Except when the overpayment resulted because the applicant
101.9failed to report deductible earnings or deductible or benefit delaying payments, no single
101.10offset may exceed 50 percent of the amount of the payment from which the offset is made.
101.11The overpayment may also be collected by the same methods as delinquent payments
101.12from an employer allowed under state and federal law.
101.13    (c) If an applicant has been overpaid unemployment benefits under the law of
101.14another state, because of a reason other than fraud, and that state certifies that the applicant
101.15is liable under its law to repay the unemployment benefits and requests the commissioner
101.16to recover the overpayment, the commissioner may offset from future unemployment
101.17benefits otherwise payable the amount of overpayment, except that no single offset may
101.18exceed 50 percent of the amount of the payment from which the offset is made.
101.19    (d) If under paragraph (b) or (c) the reduced unemployment benefits as a result of
101.20a 50 percent offset is not a whole dollar amount, it is rounded down to the next lower
101.21whole dollar.

101.22    Sec. 44. Minnesota Statutes 2008, section 268.18, subdivision 2, is amended to read:
101.23    Subd. 2. Overpayment because of fraud. (a) Any applicant who receives
101.24unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose
101.25any material fact, or who makes a false statement or representation without a good faith
101.26belief as to the correctness of the statement or representation, has committed fraud. After
101.27the discovery of facts indicating fraud, the commissioner shall must make a determination
101.28that the applicant obtained unemployment benefits by fraud and that the applicant must
101.29promptly repay the unemployment benefits to the trust fund. In addition, the commissioner
101.30shall must assess a penalty equal to 40 percent of the amount fraudulently obtained. This
101.31penalty is in addition to penalties under section 268.182.
101.32    (b) Unless the applicant files an appeal within 20 calendar days after the sending
101.33of the determination of overpayment by fraud to the applicant by mail or electronic
101.34transmission, the determination is final. Proceedings on the appeal are conducted in
101.35accordance with section 268.105.
102.1    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest
102.2assessed, the total due may be collected by the same methods as delinquent payments
102.3from an employer allowed under state and federal law. A determination of overpayment
102.4by fraud must state the methods of collection the commissioner may use to recover the
102.5overpayment. Money received in repayment of fraudulently obtained unemployment
102.6benefits, penalties, and interest is first applied to the unemployment benefits overpaid, then
102.7to the penalty amount due, then to any interest due. 62.5 percent of the payments made
102.8toward the penalty are credited to the contingent account and 37.5 percent credited to the
102.9administration account for deterring, detecting, or collecting overpayments.
102.10    (d) If an applicant has been overpaid unemployment benefits under the law of
102.11another state because of fraud and that state certifies that the applicant is liable to repay
102.12the unemployment benefits and requests the commissioner to recover the overpayment,
102.13the commissioner may offset from future unemployment benefits otherwise payable the
102.14amount of overpayment.
102.15    (e) Unemployment benefits paid for weeks more than four years before the date of a
102.16determination of overpayment by fraud issued under this subdivision are not considered
102.17overpaid unemployment benefits.

102.18    Sec. 45. Minnesota Statutes 2008, section 268.196, subdivision 1, is amended to read:
102.19    Subdivision 1. Administration account. (a) There is created in the state treasury a
102.20special account to be known as the administration account. All money that is deposited
102.21or paid into this account is continuously available to the commissioner for expenditure to
102.22administer the Minnesota unemployment insurance program, and does not lapse at any
102.23time. The administration account consists of:
102.24    (1) all money received from the federal government to administer the Minnesota
102.25unemployment insurance program, any federal unemployment insurance program, or
102.26assistance provided to any other state to administer that state's unemployment insurance
102.27program;
102.28    (2) five percent of any money recovered on overpaid unemployment benefits as
102.29provided for in section 268.194, subdivision 1, clause (7), which must be used for
102.30deterring, detecting, and collecting overpaid unemployment benefits;
102.31    (3) any money received as compensation for services or facilities supplied to the
102.32federal government or any other state;
102.33    (4) any money credited to this account under this chapter;
102.34(5) any amounts received for losses sustained by this account or by reason of
102.35damage to equipment or supplies; and
103.1    (5) (6) any proceeds from the sale or disposition of any equipment or supplies that
103.2may no longer be necessary for the proper administration of those sections.
103.3    (b) All money in this account must be deposited, administered, and disbursed in the
103.4same manner and under the same conditions and requirements as are provided by law for
103.5the other special accounts in the state treasury. The commissioner of finance, as treasurer
103.6and custodian of this account, is liable for the faithful performance of duties in connection
103.7with this account.
103.8    (c) All money in this account must be spent for the purposes and in the amounts
103.9found necessary by the United States Secretary of Labor for the proper and efficient
103.10administration of the Minnesota unemployment insurance program.

103.11    Sec. 46. Minnesota Statutes 2008, section 268.196, subdivision 2, is amended to read:
103.12    Subd. 2. State to replace money wrongfully used. If any money received under
103.13United States Code, title 42, section 501 of the Social Security Act or the Wagner-Peyser
103.14Act, is found by the United States Secretary of Labor to have been spent for purposes
103.15other than, or in amounts in excess of, those necessary for the proper administration of the
103.16Minnesota unemployment insurance program, the commissioner may replace the money
103.17from the contingent account. If the money is not replaced from the contingent account,
103.18it is the policy of this state that the money be replaced by money appropriated for that
103.19purpose from the general funds of this state. If not replaced from the contingent account,
103.20the commissioner shall must, at the earliest opportunity, submit to the legislature a request
103.21for the appropriation of that amount.

103.22    Sec. 47. Minnesota Statutes 2008, section 268.199, is amended to read:
103.23268.199 CONTINGENT ACCOUNT.
103.24    (a) There is created in the state treasury a special account, to be known as the
103.25contingent account, that does not lapse nor revert to any other fund or account. This
103.26account consists of all money appropriated by the legislature, all money collected under
103.27this chapter that is required to be placed in this account, and any interest earned on the
103.28account. All money in this account is supplemental to all federal money available to the
103.29commissioner. Money in this account is appropriated to the commissioner and is available
103.30to the commissioner for administration of the Minnesota unemployment insurance
103.31program unless otherwise appropriated by session law.
103.32    (b) All money in this account must be deposited, administered, and disbursed in the
103.33same manner and under the same conditions and requirements as is provided by law for
104.1the other special accounts in the state treasury. On June 30 of each year, all amounts in
104.2excess of $300,000 in this account must be paid over to the trust fund.

104.3    Sec. 48. Minnesota Statutes 2008, section 268.211, is amended to read:
104.4268.211 UNEMPLOYMENT INSURANCE BENEFITS TELEPHONE
104.5SYSTEM.
104.6The commissioner must ensure that the any automated telephone system used
104.7for unemployment insurance benefits provides an option for any caller to speak to an
104.8unemployment insurance specialist. An individual who calls any of the publicized
104.9telephone numbers seeking information about applying for unemployment benefits or on
104.10the status of a claim benefit account must have the option to speak on the telephone to a
104.11specialist who can provide direct assistance or can direct the caller to the person individual
104.12or office that is able to respond to the caller's needs.

104.13    Sec. 49. REVISOR'S INSTRUCTION.
104.14In Minnesota Statutes, chapter 268, the revisor shall change "shall" to "must," except
104.15in Minnesota Statutes, sections 268.035 and 268.103.

104.16    Sec. 50. REPEALER.
104.17Minnesota Statutes 2008, sections 268.085, subdivision 14; and 268.086,
104.18subdivisions 1, 2, 3, 5, 6, 7, 8, and 9, are repealed.

104.19    Sec. 51. EFFECTIVE DATE.
104.20Sections 1 to 49 are effective August 2, 2009, and apply to all department
104.21determinations and unemployment law judge decisions issued on or after that date.

104.22ARTICLE 5
104.23LABOR STANDARDS AND WAGES

104.24    Section 1. Minnesota Statutes 2008, section 177.30, is amended to read:
104.25177.30 KEEPING RECORDS; PENALTY.
104.26    (a) Every employer subject to sections 177.21 to 177.44 must make and keep a
104.27record of:
104.28    (1) the name, address, and occupation of each employee;
104.29    (2) the rate of pay, and the amount paid each pay period to each employee;
104.30    (3) the hours worked each day and each workweek by the employee;
105.1    (4) for each employer subject to sections 177.41 to 177.44, and while performing
105.2work on public works projects funded in whole or in part with state funds, the employer
105.3shall furnish under oath signed by an owner or officer of an employer to the contracting
105.4authority and the project owner every two weeks, a certified payroll report with respect
105.5to the wages and benefits paid each employee during the preceding weeks specifying for
105.6each employee: name; identifying number; prevailing wage master job classification
105.7of each employee working on the project for each hour; hours worked each day; total
105.8hours; rate of pay; gross amount earned; each deduction for taxes; total deductions; net
105.9pay for week; dollars contributed per hour for each benefit, including name and address
105.10of administrator; benefit account number; and telephone number for health and welfare,
105.11vacation or holiday, apprenticeship training, pension, and other benefit programs; and
105.12    (5) other information the commissioner finds necessary and appropriate to enforce
105.13sections 177.21 to 177.35 177.435. The records must be kept for three years in or near the
105.14premises where an employee works except each employer subject to sections 177.41 to
105.15177.44 , and while performing work on public works projects funded in whole or in part
105.16with state funds, the records must be kept for three years after the contracting authority
105.17has made final payment on the public works project.
105.18    (b) The commissioner may fine an employer up to $1,000 for each failure to
105.19maintain records as required by this section. This penalty is in addition to any penalties
105.20provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
105.21under this subdivision, the appropriateness of such penalty to the size of the employer's
105.22business and the gravity of the violation shall be considered.

105.23    Sec. 2. Minnesota Statutes 2008, section 177.31, is amended to read:
105.24177.31 POSTING OF LAW AND RULES; PENALTY.
105.25Every employer subject to sections 177.21 to 177.35 177.44 must obtain and keep
105.26a summary of those sections, approved by the department, and copies of any applicable
105.27rules adopted under those sections, or a summary of the rules. The employer must post the
105.28summaries in a conspicuous and accessible place in or about the premises in which any
105.29person covered by sections 177.21 to 177.35 177.44 is employed. The department shall
105.30furnish copies of the summaries and rules to employers without charge.
105.31The commissioner may fine an employer up to $200 for each failure to comply with
105.32this section. This penalty is in addition to any penalties provided by section 177.32,
105.33subdivision 1
.

106.1    Sec. 3. Minnesota Statutes 2008, section 177.32, is amended to read:
106.2177.32 PENALTIES.
106.3    Subdivision 1. Misdemeanors. An employer who does any of the following is
106.4guilty of a misdemeanor:
106.5(1) hinders or delays the commissioner in the performance of duties required under
106.6sections 177.21 to 177.35 177.435;
106.7(2) refuses to admit the commissioner to the place of business or employment of the
106.8employer, as required by section 177.27, subdivision 1;
106.9(3) repeatedly fails to make, keep, and preserve records as required by section
106.10177.30 ;
106.11(4) falsifies any record;
106.12(5) refuses to make any record available, or to furnish a sworn statement of the
106.13record or any other information as required by section 177.27;
106.14(6) repeatedly fails to post a summary of sections 177.21 to 177.35 177.44 or a copy
106.15or summary of the applicable rules as required by section 177.31;
106.16(7) pays or agrees to pay wages at a rate less than the rate required under sections
106.17177.21 to 177.35 177.44;
106.18(8) refuses to allow adequate time from work as required by section 177.253; or
106.19(9) otherwise violates any provision of sections 177.21 to 177.35 177.44.
106.20    Subd. 2. Fine. An employer shall be fined not less than $700 nor more than $3,000
106.21if convicted of discharging or otherwise discriminating against any employee because:
106.22(1) the employee has complained to the employer or to the department that wages
106.23have not been paid in accordance with sections 177.21 to 177.35 177.435;
106.24(2) the employee has instituted or will institute a proceeding under or related to
106.25sections 177.21 to 177.35 177.435; or
106.26(3) the employee has testified or will testify in any proceeding.

106.27    Sec. 4. Minnesota Statutes 2008, section 177.42, subdivision 6, is amended to read:
106.28    Subd. 6. Prevailing wage rate. "Prevailing wage rate" means the hourly basic rate
106.29of pay plus the contribution for health and welfare benefits, vacation benefits, pension
106.30benefits, and any other economic benefit paid to or for the largest number of workers
106.31engaged in the same class of labor within the area and for medical or hospital care,
106.32pensions on retirement or death, compensation for injuries or illness resulting from
106.33occupational activity, or insurance to provide any of the foregoing, for unemployment
106.34benefits, life insurance, disability and sickness insurance, or accident insurance, for
106.35vacation and holiday pay, for defraying the costs of apprenticeship or other similar
107.1programs, or for other bona fide fringe benefits, but only where the contractor or
107.2subcontractor is not required by other federal, state, or local law to provide any of those
107.3benefits, the amount of:
107.4(1) the rate of contribution irrevocably made by a contractor or subcontractor to a
107.5trustee or to a third person under a fund, plan, or program; and
107.6(2) the rate of costs to the contractor or subcontractor that may be reasonably
107.7anticipated in providing benefits to laborers and mechanics pursuant to an enforceable
107.8commitment to carry out a financially responsible plan or program which was
107.9communicated in writing to the laborers and mechanics affected.
107.10"Prevailing wage rate" includes, for the purposes of section 177.44, rental rates for
107.11truck hire paid to those who own and operate the truck.
107.12The prevailing wage rate may not be less than a reasonable and living wage.

107.13    Sec. 5. Minnesota Statutes 2008, section 177.42, is amended by adding a subdivision
107.14to read:
107.15    Subd. 7. Employer. "Employer" means an individual, partnership, association,
107.16corporation, business trust, or other business entity that hires a laborer, worker, or
107.17mechanic.

107.18    Sec. 6. Minnesota Statutes 2008, section 177.43, subdivision 3, is amended to read:
107.19    Subd. 3. Contract requirements. The contract must specifically state the prevailing
107.20wage rates, prevailing hours of labor, and hourly basic rates of pay. The contracting
107.21authority shall incorporate into its proposals and all contracts the applicable wage
107.22determinations for the contract along with contract language provided by the commissioner
107.23of labor and industry to notify the contractor and all subcontractors of the applicability of
107.24sections 177.41 to 177.44. Failure to incorporate the determination or provided contract
107.25language into the contracts shall make the contracting authority liable for making whole
107.26the contractor or subcontractor for any increases in the wages paid, including employment
107.27taxes and reasonable administrative costs based on the appropriate prevailing wage due to
107.28the laborers or mechanics working on the project. The contract must also provide that
107.29the contracting agency shall demand, and the contractor and subcontractor shall furnish
107.30to the contracting agency, copies of any or all payrolls not more than 14 days after the
107.31end of each pay period. The payrolls must contain all the data required by section 177.30.
107.32The contracting authority may examine all records relating to wages paid laborers or
107.33mechanics on work to which sections 177.41 to 177.44 apply.

108.1    Sec. 7. Minnesota Statutes 2008, section 177.43, subdivision 6a, is amended to read:
108.2    Subd. 6a. Prevailing wage violations. (a) If an employer is found by the
108.3commissioner to have violated this section prior to the issuance of a compliance order
108.4under section 177.27, subdivision 4, the commissioner shall order the employer to cease
108.5and desist from engaging in the violative practice and to take affirmative steps that in
108.6the judgment of the commissioner will effectuate the purposes of the section or rule
108.7violated. The commissioner shall require any employer that has violated this section to
108.8pay the aggrieved parties back pay, less any amount actually paid to the employee by the
108.9employer, and, if the employer has repeatedly violated this section, for an additional equal
108.10amount as liquidated damages. For the purposes of this subdivision, "repeatedly" means
108.11to be found by the commissioner to have violated this section more than once within a
108.12two-year period. An employer who is found by the commissioner to have repeatedly or
108.13willfully violated this section is subject to a civil penalty of up to $1,000 for each violation
108.14for each employee. In determining the amount of a civil penalty under this subdivision,
108.15the appropriateness of the penalty to the size of the employer's business and the gravity of
108.16the violation shall be considered.
108.17    (b) Upon issuing a compliance order to an employer pursuant to section 177.27,
108.18subdivision 4
, for violation of sections 177.41 to 177.44, the commissioner shall issue
108.19a withholding order to the contracting authority ordering the contracting authority to
108.20withhold payment of sufficient sum to the prime or general contractor on the project
108.21to satisfy the back wages assessed or otherwise cure the violation, and the contracting
108.22authority must withhold the sum ordered until the compliance order has become a final
108.23order of the commissioner and has been fully paid or otherwise resolved by the employer.
108.24    (c) During an investigation of a violation of sections 177.41 to 177.44 which the
108.25commissioner reasonably determines is likely to result in the finding of a violation of
108.26sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section
108.27177.27, subdivision 4 , the commissioner may notify the contracting authority of the
108.28determination and the amount expected to be assessed and the contracting authority shall
108.29give the commissioner 90 days' prior notice of the date the contracting authority intends to
108.30make final payment.

108.31    Sec. 8. [181.305] MINING EQUIPMENT OPERATORS, HOURS.
108.32    Subdivision 1. Required hours. No employer may require an employee to operate
108.33mining equipment or other mobile equipment used in the mining process for more than
108.3416 cumulative hours following eight consecutive hours off duty. "Mining equipment or
109.1other mobile equipment" includes but is not limited to haul trucks, off-road dump trucks,
109.2front-end loaders, graders, or plows. Nothing in this subdivision shall:
109.3(1) prohibit an employee from working longer than 16 cumulative hours on duty
109.4if they so desire; or
109.5(2) supersede the terms of a valid collective bargaining agreement.
109.6    Subd. 2. Penalties. An employer who violates this section is guilty of a
109.7misdemeanor and is liable to an employee for injuries sustained in consequence of the
109.8violation.
109.9EFFECTIVE DATE.This section if effective the day following final enactment.

109.10    Sec. 9. [181.986] REQUIRED EQUIPMENT AND APPAREL.
109.11    (a) Notwithstanding any other law or rule to the contrary, a public employer is
109.12prohibited from knowingly purchasing or acquiring, furnishing, or requiring an employee
109.13to purchase or acquire for wear or use while on duty, any of the following items if the item
109.14is not manufactured in the United States of America:
109.15    (1) any uniform or other item of wearing apparel over which an employee has no
109.16discretion in selecting except for selecting the proper size; or
109.17    (2) safety equipment or protective accessories.
109.18    (b) Preference must be given to purchases from manufacturers who pay an average
109.19annual income, including wages and benefits, equal to at least 150 percent of the federal
109.20poverty guideline adjusted for a family size of four. For purposes of this section, "public
109.21employer" means a county, home rule charter or statutory city, town, school district,
109.22metropolitan or regional agency, public corporation, political subdivision, special district
109.23as defined in section 6.465, subdivision 3, municipal fire department, independent
109.24nonprofit firefighting corporation, the University of Minnesota, the Minnesota State
109.25Colleges and Universities, and the state of Minnesota and its agencies.
109.26    (c) Notwithstanding paragraph (a), a public employer may purchase or acquire,
109.27furnish, or require an employee to purchase or acquire items listed in paragraph (a)
109.28manufactured outside of the United States if similar items are not manufactured or
109.29available for purchase in the United States.
109.30EFFECTIVE DATE.This section is effective January 1, 2010.

110.1ARTICLE 6
110.2LICENSING AND FEES

110.3    Section 1. Minnesota Statutes 2008, section 326B.33, subdivision 19, is amended to
110.4read:
110.5    Subd. 19. License, registration, and renewal fees; expiration. (a) Unless
110.6revoked or suspended under this chapter, all licenses issued or renewed under this section
110.7expire on the date specified in this subdivision. Master licenses expire March 1 of each
110.8odd-numbered year after issuance or renewal. Electrical contractor licenses expire March
110.91 of each even-numbered year after issuance or renewal. Technology system contractor
110.10licenses expire August 1 of each even-numbered year after issuance or renewal. All
110.11other personal licenses expire two years from the date of original issuance and every two
110.12years thereafter. Registrations of unlicensed individuals expire one year from the date of
110.13original issuance and every year thereafter.
110.14    (b) Fees for application and examination, and for the original issuance and each
110.15subsequent renewal, are:
110.16    (1) For each personal license application and examination: $35;
110.17    (2) For original issuance and each subsequent renewal of:
110.18    Class A Master or master special electrician, including master elevator constructor:
110.19$40 per year;
110.20    Class B Master: $25 per year;
110.21    Power Limited Technician: $15 per year;
110.22    Class A Journeyman, Class B Journeyman, Installer, Elevator Constructor, Lineman,
110.23or Maintenance Electrician other than master special electrician: $15 per year;
110.24    Contractor: $100 per year;
110.25    Unlicensed individual registration: $15 per year.
110.26    (c) If any new license is issued in accordance with this subdivision for less than two
110.27years, the fee for the license shall be prorated on an annual basis.
110.28    (d) A license fee may not be refunded after a license is issued or renewed. However,
110.29if the fee paid for a license was not prorated in accordance with this subdivision, the
110.30amount of the overpayment shall be refunded.
110.31    (e) Any contractor who seeks reissuance of a license after it has been revoked or
110.32suspended under this chapter shall submit a reissuance fee of $100 before the license is
110.33reinstated.
110.34    (f) The fee for the issuance of each duplicate license is $15.
111.1    (g) (f) An individual or contractor who fails to renew a license before 30 days after
111.2the expiration or registration of the license must submit a late fee equal to one year's
111.3license fee in addition to the full renewal fee. Fees for renewed licenses or registrations
111.4are not prorated. An individual or contractor that fails to renew a license or registration by
111.5the expiration date is unlicensed until the license or registration is renewed.

111.6    Sec. 2. Minnesota Statutes 2008, section 326B.46, subdivision 4, is amended to read:
111.7    Subd. 4. Fee. (a) Each person giving bond to the state under subdivision 2 shall pay
111.8the department an annual a bond registration fee of $40 for one year or $80 for two years.
111.9(b) The commissioner shall in a manner determined by the commissioner, without
111.10the need for any rulemaking under chapter 14, phase in the bond registration from one year
111.11to two years so that the expiration of bond registration corresponds with the expiration of
111.12the license issued under section 326B.49, subdivision 1, or 326B.475.

111.13    Sec. 3. Minnesota Statutes 2008, section 326B.475, subdivision 4, is amended to read:
111.14    Subd. 4. Renewal; use period for license. (a) A restricted master plumber and
111.15restricted journeyman plumber license must be renewed annually for as long as that
111.16licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
111.17restricted journeyman plumber license within 12 months after the expiration date will
111.18result in permanent forfeiture of the restricted master plumber and restricted journeyman
111.19plumber license.
111.20(b) The commissioner shall in a manner determined by the commissioner, without
111.21the need for any rulemaking under chapter 14, phase in the renewal of restricted master
111.22plumber and restricted journeyman plumber licenses from one year to two years. By
111.23June 30, 2011, all restricted master plumber and restricted journeyman plumber licenses
111.24shall be two-year licenses.

111.25    Sec. 4. Minnesota Statutes 2008, section 326B.475, subdivision 7, is amended to read:
111.26    Subd. 7. Fee. The annual renewal fee for the restricted master plumber and
111.27restricted journeyman plumber licenses is the same fee as for a master or journeyman
111.28plumber license, respectively.

111.29    Sec. 5. Minnesota Statutes 2008, section 326B.49, subdivision 1, is amended to read:
111.30    Subdivision 1. Application. (a) Applications for plumber's license shall be made to
111.31the commissioner, with fee. Unless the applicant is entitled to a renewal, the applicant
111.32shall be licensed by the commissioner only after passing a satisfactory examination
112.1developed and administered by the commissioner, based upon rules adopted by the
112.2Plumbing Board, showing fitness. Examination fees for both journeyman and master
112.3plumbers shall be $50 for each examination. Upon being notified of having successfully
112.4passed the examination for original license the applicant shall submit an application,
112.5with the license fee herein provided. The license fee for each initial and renewal master
112.6plumber's license shall be $120 $240. The license fee for each initial and renewal
112.7journeyman plumber's license shall be $55 $110. The commissioner may by rule prescribe
112.8for the expiration and renewal of licenses.
112.9(b) All initial master and journeyman plumber's licenses shall be effective for more
112.10than one calendar year and shall expire on December 31 of the year after the year in which
112.11the application is made. The license fee for each renewal master plumber's license shall be
112.12$120 for one year or $240 for two years. The license fee for each renewal journeyman
112.13plumber's license shall be $55 for one year or $110 for two years. The commissioner
112.14shall in a manner determined by the commissioner, without the need for any rulemaking
112.15under chapter 14, phase in the renewal of master and journeyman plumber's licenses from
112.16one year to two years. By June 30, 2011, all renewed master and journeyman plumber's
112.17licenses shall be two-year licenses.
112.18(c) Any licensee who does not renew a license within two years after the license
112.19expires is no longer eligible for renewal. Such an individual must retake and pass the
112.20examination before a new license will be issued. A journeyman or master plumber who
112.21submits a license renewal application after the time specified in rule but within two years
112.22after the license expired must pay all past due renewal fees plus a late fee of $25.

112.23    Sec. 6. Minnesota Statutes 2008, section 326B.56, subdivision 4, is amended to read:
112.24    Subd. 4. Fee. (a) The commissioner shall collect a $40 bond registration fee for
112.25one year or $80 for two years from each applicant for issuance or renewal of a water
112.26conditioning contractor or installer license who elects to proceed under subdivisions
112.271 and 2.
112.28(b) The commissioner shall in a manner determined by the commissioner, without
112.29the need for any rulemaking under chapter 14, phase in the bond registration from one year
112.30to two years so that the expiration of bond registration corresponds with the expiration of
112.31the license issued under section 326B.55.

112.32    Sec. 7. Minnesota Statutes 2008, section 326B.58, is amended to read:
112.33326B.58 FEES.
113.1    (a) Examination fees for both water conditioning contractors and water conditioning
113.2installers shall be $50 for each examination. Each initial water conditioning contractor
113.3and installer license shall be effective for more than one calendar year and shall expire on
113.4December 31 of the year for which it was issued after the year in which the application
113.5is made. The license fee for each initial water conditioning contractor's license shall be
113.6$70 $140, except that the license fee shall be $35 $105 if the application is submitted
113.7during the last three months of the calendar year. The license fee for each renewal water
113.8conditioning contractor's license shall be $70 for one year or $140 for two years. The
113.9license fee for each initial water conditioning installer license shall be $35 $70, except
113.10that the license fee shall be $17.50 $52.50 if the application is submitted during the last
113.11three months of the calendar year. The license fee for each renewal water conditioning
113.12installer license shall be $35 for one year or $70 for two years.
113.13(b) The commissioner shall in a manner determined by the commissioner, without
113.14the need for any rulemaking under chapter 14, phase in the renewal of water conditioning
113.15contractor and installer licenses from one year to two years. By June 30, 2011, all renewed
113.16water conditioning contractor and installer licenses shall be two-year licenses. The
113.17commissioner may by rule prescribe for the expiration and renewal of licenses.
113.18(c) Any licensee who does not renew a license within two years after the license
113.19expires is no longer eligible for renewal. Such an individual must retake and pass the
113.20examination before a new license will be issued. A water conditioning contractor or water
113.21conditioning installer who submits a license renewal application after the time specified
113.22in rule but within two years after the license expired must pay all past due renewal fees
113.23plus a late fee of $25.

113.24    Sec. 8. Minnesota Statutes 2008, section 326B.815, subdivision 1, is amended to read:
113.25    Subdivision 1. Licensing fee. (a) The licensing fee for persons licensed pursuant
113.26to sections 326B.802 to 326B.885, except for manufactured home installers, is $100 per
113.27year $200 for a two-year period. The licensing fee for manufactured home installers under
113.28section 327B.041 is $300 for a three-year period.
113.29(b) All initial licenses, except for manufactured home installer licenses, shall be
113.30effective for two years and shall expire on March 31 of the year after the year in which the
113.31application is made. The license fee for each renewal of a residential contractor, residential
113.32remodeler, or residential roofer license shall be $100 for one year and $200 for two years.
113.33(c) The commissioner shall in a manner determined by the commissioner, without
113.34the need for any rulemaking under chapter 14, phase in the renewal of residential
113.35contractor, residential remodeler, and residential roofer licenses from one year to two
114.1years. By June 30, 2011, all renewed residential contractor, residential remodeler, and
114.2residential roofer licenses shall be two-year licenses.

114.3    Sec. 9. Minnesota Statutes 2008, section 326B.821, subdivision 2, is amended to read:
114.4    Subd. 2. Hours. A qualifying person of a licensee must provide proof of completion
114.5of seven 14 hours of continuing education per year two-year licensure period in the
114.6regulated industry in which the licensee is licensed.
114.7    Credit may not be earned if the licensee has previously obtained credit for the same
114.8course as either a student or instructor during the same licensing period.

114.9    Sec. 10. Minnesota Statutes 2008, section 326B.86, subdivision 1, is amended to read:
114.10    Subdivision 1. Bond. (a) Licensed manufactured home installers and licensed
114.11residential roofers must post a surety bond in the name of the licensee with the
114.12commissioner, conditioned that the applicant shall faithfully perform the duties and
114.13in all things comply with all laws, ordinances, and rules pertaining to the license or
114.14permit applied for and all contracts entered into. The annual bond must be continuous
114.15and maintained for so long as the licensee remains licensed. The aggregate liability of
114.16the surety on the bond to any and all persons, regardless of the number of claims made
114.17against the bond, may not exceed the amount of the bond. The bond may be canceled as
114.18to future liability by the surety upon 30 days' written notice mailed to the commissioner
114.19by regular mail.
114.20    (b) A licensed residential roofer must post a bond of at least $15,000.
114.21    (c) A licensed manufactured home installer must post a bond of at least $2,500.
114.22    Bonds issued under sections 326B.802 to 326B.885 are not state bonds or contracts
114.23for purposes of sections 8.05 and 16C.05, subdivision 2.

114.24    Sec. 11. Minnesota Statutes 2008, section 326B.885, subdivision 2, is amended to read:
114.25    Subd. 2. Annual Renewal period. Any license issued or renewed after August
114.261, 1993, must be renewed annually except for (a) Residential contractor, residential
114.27remodeler, and residential roofer licenses shall have a renewal period of two years. The
114.28commissioner shall in a manner determined by the commissioner, without the need for any
114.29rulemaking under chapter 14, phase in the renewal of residential contractor, residential
114.30remodeler, and residential roofer licenses from one year to two years. By June 30, 2011,
114.31all renewed residential contractor, residential remodeler, and residential roofer licenses
114.32shall be two-year licenses.
115.1(b) A manufactured home installer's license which shall have a renewal period of
115.2three years, effective for all renewals and new licenses issued after December 31, 2008.

115.3    Sec. 12. Minnesota Statutes 2008, section 326B.89, subdivision 3, is amended to read:
115.4    Subd. 3. Fund fees. In addition to any other fees, a person who applies for or
115.5renews a license under sections 326B.802 to 326B.885 shall pay a fee to the fund. The
115.6person shall pay, in addition to the appropriate application or renewal fee, the following
115.7additional fee that shall be deposited in the fund. The amount of the fee shall be based on
115.8the person's gross annual receipts for the person's most recent fiscal year preceding the
115.9application or renewal, on the following scale:
115.10
Fee
Gross Annual Receipts
115.11
$160 $320
under $1,000,000
115.12
$210 $420
$1,000,000 to $5,000,000
115.13
$260 $520
over $5,000,000

115.14    Sec. 13. Minnesota Statutes 2008, section 326B.89, subdivision 16, is amended to read:
115.15    Subd. 16. Additional assessment. If the balance in the fund is at any time less
115.16than the commissioner determines is necessary to carry out the purposes of this section,
115.17every licensee, when renewing a license, shall pay, in addition to the annual renewal
115.18fee and the fee set forth in subdivision 3, an assessment not to exceed $100 $200. The
115.19commissioner shall set the amount of assessment based on a reasonable determination
115.20of the amount that is necessary to restore a balance in the fund adequate to carry out the
115.21purposes of this section.

115.22    Sec. 14. Minnesota Statutes 2008, section 326B.94, subdivision 4, is amended to read:
115.23    Subd. 4. Examinations, licensing. The commissioner shall develop and administer
115.24an examination for all masters of boats carrying passengers for hire on the inland waters of
115.25the state as to their qualifications and fitness. If found qualified and competent to perform
115.26their duties as a master of a boat carrying passengers for hire, they shall be issued a license
115.27authorizing them to act as such on the inland waters of the state. The license shall be
115.28renewed annually. All initial master's licenses shall be for two years. The commissioner
115.29shall in a manner determined by the commissioner, without the need for any rulemaking
115.30under chapter 14, phase in the renewal of master's licenses from one year to two years.
115.31By June 30, 2011, all renewed master's licenses shall be two-year licenses. Fees for the
115.32original issue and renewal of the license authorized under this section shall be pursuant to
115.33section 326B.986, subdivision 2.

116.1    Sec. 15. Minnesota Statutes 2008, section 326B.972, is amended to read:
116.2326B.972 LICENSE REQUIREMENT.
116.3    (a) To operate a boiler, steam engine, or turbine an individual must have received a
116.4license for the grade covering that boiler, steam engine, or turbine. The license must be
116.5renewed annually, except as provided Except for licenses described in section 326B.956
116.6and except for provisional licenses described in paragraphs (d) to (g).:
116.7(1) all initial licenses shall be for two years;
116.8(2) the commissioner shall in a manner determined by the commissioner, without
116.9the need for any rulemaking under chapter 14, phase in the renewal of licenses from
116.10one year to two years; and
116.11(3) by June 30, 2011, all licenses shall be two-year licenses.
116.12    (b) For purposes of sections 326B.952 to 326B.998, "operation" does not include
116.13monitoring of an automatic boiler, either through on premises inspection of the boiler or
116.14by remote electronic surveillance, provided that no operations are performed upon the
116.15boiler other than emergency shut down in alarm situations.
116.16    (c) No individual under the influence of illegal drugs or alcohol may operate a boiler,
116.17steam engine, or turbine or monitor an automatic boiler.
116.18    (d) The commissioner may issue a provisional license to allow an employee of a
116.19high pressure boiler plant to operate boilers greater than 500 horsepower at only that
116.20boiler plant if:
116.21    (1) the boiler plant has a designated chief engineer in accordance with Minnesota
116.22Rules, part 5225.0410;
116.23    (2) the boiler plant employee holds a valid license as a second-class engineer,
116.24Grade A or B;
116.25    (3) the chief engineer in charge of the boiler plant submits an application to the
116.26commissioner on a form prescribed by the commissioner to elicit information on whether
116.27the requirements of this paragraph have been met;
116.28    (4) the chief engineer in charge of the boiler plant and an authorized representative
116.29of the owner of the boiler plant both sign the application for the provisional license;
116.30    (5) the owner of the boiler plant has a documented training program with examination
116.31for boilers and equipment at the boiler plant to train and test the boiler plant employee; and
116.32    (6) if the application were to be granted, the total number of provisional licenses
116.33for employees of the boiler plant would not exceed the total number of properly licensed
116.34first-class engineers and chief engineers responsible for the safe operation of the boilers
116.35at the boiler plant.
117.1    (e) A public utility, cooperative electric association, generation and transmission
117.2cooperative electric association, municipal power agency, or municipal electric utility
117.3that employs licensed boiler operators who are subject to an existing labor contract may
117.4use a provisional licensee as an operator only if using the provisional licensee does not
117.5violate the labor contract.
117.6    (f) Each provisional license expires 36 months after the date of issuance unless
117.7revoked less than 36 months after the date of issuance. A provisional license may not be
117.8renewed.
117.9    (g) The commissioner may issue no more than two provisional licenses to any
117.10individual within a four-year period.

117.11    Sec. 16. Minnesota Statutes 2008, section 326B.986, subdivision 2, is amended to read:
117.12    Subd. 2. Fee amounts; master's. The license and application fee for a an initial
117.13master's license is $50 $70, or $20 $40 if the applicant possesses a valid, unlimited, current
117.14United States Coast Guard master's license. The annual renewal of fee for a master's
117.15license is $20 for one year or $40 for two years. The annual renewal If the renewal fee is
117.16paid later than 30 days after expiration is $35. The fee for replacement of a current, valid
117.17license is $20, then a late fee of $15 will be added to the renewal fee.

117.18    Sec. 17. Minnesota Statutes 2008, section 326B.986, subdivision 5, is amended to read:
117.19    Subd. 5. Boiler engineer license fees. (a) For the following licenses, the
117.20nonrefundable license and application fee is:
117.21(1) chief engineer's license, $50 $70;
117.22(2) first class engineer's license, $50 $70;
117.23(3) second class engineer's license, $50 $70;
117.24(4) special engineer's license, $20 $40;
117.25(5) traction or hobby boiler engineer's license, $50; and
117.26(6) provisional license, $50.
117.27    (b) An engineer's license, except a provisional license, may be renewed upon
117.28application and payment of an annual a renewal fee of $20 for one year or $40 for two
117.29years. The annual renewal, If the renewal fee is paid later than 30 days after expiration,
117.30is $35. The fee for replacement of a current, valid license is $20 then a late fee of $15
117.31will be added to the renewal fee.

117.32    Sec. 18. Minnesota Statutes 2008, section 326B.986, subdivision 8, is amended to read:
118.1    Subd. 8. Certificate of competency. The fee for issuance of the original state
118.2of Minnesota certificate of competency for inspectors is $50. This fee is waived $85
118.3for inspectors who did not pay the examination fee or $35 for inspectors who paid
118.4the examination fee. All initial certificates of competency shall be effective for more
118.5than one calendar year and shall expire on December 31 of the year after the year in
118.6which the application is made. The commissioner shall in a manner determined by the
118.7commissioner, without the need for any rulemaking under chapter 14, phase in the renewal
118.8of certificates of competency from one calendar year to two calendar years. By June 30,
118.92011, all renewed certificates of competency shall be valid for two calendar years. The fee
118.10for an annual renewal of the state of Minnesota certificate of competency is $35 for one
118.11year or $70 for two years, and is due January 1 of each year. The fee for replacement of a
118.12current, valid license is $35 the day after the certificate expires.

118.13    Sec. 19. Minnesota Statutes 2008, section 327B.04, subdivision 7, is amended to read:
118.14    Subd. 7. Fees; Licenses; when granted. Each application for a license or license
118.15renewal must be accompanied by a fee in an amount established by the commissioner by
118.16rule pursuant to section 327B.10 subdivision 7a. The fees shall be set in an amount which
118.17over the fiscal biennium will produce revenues approximately equal to the expenses which
118.18the commissioner expects to incur during that fiscal biennium while administering and
118.19enforcing sections 327B.01 to 327B.12. The commissioner shall grant or deny a license
118.20application or a renewal application within 60 days of its filing. If the license is granted,
118.21the commissioner shall license the applicant as a dealer or manufacturer for the remainder
118.22of the calendar year licensure period. Upon application by the licensee, the commissioner
118.23shall renew the license for a two year period, if:
118.24    (a) (1) the renewal application satisfies the requirements of subdivisions 3 and 4;
118.25    (b) (2) the renewal applicant has made all listings, registrations, notices and reports
118.26required by the commissioner during the preceding year licensure period; and
118.27    (c) (3) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to
118.28327B.12 and all taxes, arrearages, and penalties owed to the state.

118.29    Sec. 20. Minnesota Statutes 2008, section 327B.04, is amended by adding a
118.30subdivision to read:
118.31    Subd. 7a. Fees. (a) Fees for licenses issued pursuant to this section are as follows:
118.32(1) initial dealer license for principal location, $400;
118.33(2) initial dealer license for subagency location, $80;
119.1(3) dealer license biennial renewal, principal location, $400; dealer subagency
119.2location biennial renewal, $160, which must coincide with the principal license date;
119.3(4) initial limited dealer license, $200;
119.4(5) change of bonding company, $10;
119.5(6) reinstatement of bond after cancellation notice has been received, $10;
119.6(7) checks returned without payment, $15; and
119.7(8) change of address, $10.
119.8(b) All initial limited dealer licenses shall be effective for more than one calendar
119.9year and shall expire on December 31 of the year after the year in which the application
119.10is made.
119.11(c) The license fee for each renewed limited dealer license shall be $100 for one
119.12year and $200 for two years. The commissioner shall in a manner determined by the
119.13commissioner, without the need for any rulemaking under chapter 14, phase in the renewal
119.14of limited dealer licenses from one year to two years. By June 30, 2011, all renewed
119.15limited dealer licenses shall be two-year licenses.
119.16(d) All fees are nonrefundable.

119.17    Sec. 21. Minnesota Statutes 2008, section 327B.04, subdivision 8, is amended to read:
119.18    Subd. 8. Limited dealer's license. The commissioner shall issue a limited dealer's
119.19license to an owner of a manufactured home park authorizing the licensee as principal
119.20only to engage in the sale, offering for sale, soliciting, or advertising the sale of used
119.21manufactured homes located in the owned manufactured home park. The licensee must
119.22be the title holder of the homes and may engage in no more than ten sales annually
119.23during each year of the two-year licensure period. An owner may, upon payment of the
119.24applicable fee and compliance with this subdivision, obtain a separate license for each
119.25owned manufactured home park and is entitled to sell up to ten 20 homes per license
119.26period provided that only one limited dealer license may be issued for each park. The
119.27license shall be issued after:
119.28    (1) receipt of an application on forms provided by the commissioner containing
119.29the following information:
119.30    (i) the identity of the applicant;
119.31    (ii) the name under which the applicant will be licensed and do business in this state;
119.32    (iii) the name and address of the owned manufactured home park, including a copy
119.33of the park license, serving as the basis for the issuance of the license;
119.34    (iv) the name, home, and business address of the applicant;
120.1    (v) the name, address, and telephone number of one individual that is designated
120.2by the applicant to receive all communications and cooperate with all inspections and
120.3investigations of the commissioner pertaining to the sale of manufactured homes in the
120.4manufactured home park owned by the applicant;
120.5    (vi) whether the applicant or its designated individual has been convicted of a crime
120.6within the previous ten years that is either related directly to the business for which the
120.7license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a
120.8judgment in a civil action involving fraud, misrepresentation, or conversion within the
120.9previous five years or has had any government license or permit suspended or revoked
120.10as a result of an action brought by a federal or state governmental agency in this or any
120.11other state within the last five years; and
120.12    (vii) the applicant's qualifications and business history, including whether the
120.13applicant or its designated individual has ever been adjudged bankrupt or insolvent, or has
120.14any unsatisfied court judgments outstanding against it or them;
120.15    (2) payment of a $100 annual the license fee established by subdivision 7a; and
120.16    (3) provision of a surety bond in the amount of $5,000. A separate surety bond
120.17must be provided for each limited license.
120.18    The applicant need not comply with section 327B.04, subdivision 4, paragraph (e).
120.19The holding of a limited dealer's license does not satisfy the requirement contained in
120.20section 327B.04, subdivision 4, paragraph (e), for the licensee or salespersons with respect
120.21to obtaining a dealer license. The commissioner may, upon application for a renewal of
120.22a license, require only a verification that copies of sales documents have been retained
120.23and payment of a $100 the renewal fee established by subdivision 7a. "Sales documents"
120.24mean only the safety feature disclosure form defined in section 327C.07, subdivision 3a,
120.25title of the home, financing agreements, and purchase agreements.
120.26    The license holder shall, upon request of the commissioner, make available for
120.27inspection during business hours sales documents required to be retained under this
120.28subdivision.

120.29    Sec. 22. REPEALER.
120.30Minnesota Rules, part 1350.8300, is repealed.

120.31ARTICLE 7
120.32MISCELLANEOUS

120.33    Section 1. Minnesota Statutes 2008, section 85.0146, subdivision 1, is amended to read:
121.1    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation
121.2Area Citizens Advisory Council is established. Notwithstanding section 15.059, the
121.3council does not expire. Membership on the advisory council shall include:
121.4    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers
121.5Board;
121.6    (2) a representative of the Croft Mine Historical Park Joint Powers Board;
121.7    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has
121.8worked as a miner in the local area;
121.9    (4) a representative of the Crow Wing County Board;
121.10    (5) an elected state official;
121.11    (6) a representative of the Grand Rapids regional office of the Department of Natural
121.12Resources;
121.13    (7) a designee of the Iron Range Resources and Rehabilitation Board;
121.14    (8) a designee of the local business community selected by the area chambers of
121.15commerce;
121.16    (9) a designee of the local environmental community selected by the Crow Wing
121.17County District 5 commissioner;
121.18    (10) a designee of a local education organization selected by the Crosby-Ironton
121.19School Board;
121.20    (11) a designee of one of the recreation area user groups selected by the Cuyuna
121.21Range Chamber of Commerce; and
121.22    (12) a member of the Cuyuna Country Heritage Preservation Society.

121.23    Sec. 2. Minnesota Statutes 2008, section 89A.08, subdivision 1, is amended to read:
121.24    Subdivision 1. Establishment. The council shall appoint a Forest Resources
121.25Research Advisory Committee. Notwithstanding section 15.059, the council does not
121.26expire. The committee must consist of representatives of:
121.27(1) the College of Natural Resources, University of Minnesota;
121.28(2) the Natural Resources Research Institute, University of Minnesota;
121.29(3) the department;
121.30(4) the North Central Forest Experiment Station, United States Forest Service; and
121.31(5) other organizations as deemed appropriate by the council.

121.32    Sec. 3. [90.43] DUTY TO MAINTAIN WOOD PRODUCTS FACILITY.
121.33The owner or operator of a wood products facility shall maintain the facility in
121.34salable operating condition for at least two years after it permanently discontinues
122.1operation of the facility to ensure that public and utility investments in the facility are
122.2protected and that the facility's tax and other obligations to state and local governments
122.3and other residents of Minnesota created by contract or otherwise are satisfied. These
122.4obligations include, in addition to any other obligations, any obligation created by "the
122.5relief payment for timber sale permits" program created by Laws 2007, chapter 57, article
122.61, section 158. Specifically, and in addition to other obligations on an owner or operator,
122.7this section prohibits the permanent removal from the facility of equipment necessary for
122.8the facility's operation during the two-year period. The requirements of this section are
122.9enforceable on all owners and operators and successors of owners and operators and shall
122.10be enforced by the state in any action brought by the state or others, including actions in
122.11bankruptcy. The attorney general shall bring an action to prevent a violation or threatened
122.12violation of this section. For the purpose of this section, "wood products facility" means a
122.13lumber or other company facility that employed more than 100 employees at the facility
122.14at any time in the five-year period immediately prior to discontinuing operations, had
122.15permits to harvest timber used in that operation, and manufactured products derived
122.16from wood at the facility.
122.17EFFECTIVE DATE.This section is effective the day following final enactment
122.18and applies retroactively to the discontinuance of operation occurring on or after January
122.191, 2008.

122.20    Sec. 4. Minnesota Statutes 2008, section 154.001, is amended to read:
122.21154.001 BOARD OF BARBER AND COSMETOLOGIST EXAMINERS
122.22CREATED; TERMS.
122.23    Subdivision 1. Definition. For the purposes of this chapter, "board" means the
122.24Board of Barber Examiners.
122.25    Subd. 2. Board of Barber Examiners. (a) A Board of Barber and Cosmetologist
122.26Examiners is established to consist of three barber members, three cosmetologist members,
122.27and one public member, as defined in section 214.02, appointed by the governor.
122.28(b) The barber members shall be persons who have practiced as registered barbers in
122.29this state for at least five years immediately prior to their appointment; shall be graduates
122.30from the 12th grade of a high school or have equivalent education, and shall have
122.31knowledge of the matters to be taught in registered barber schools, as set forth in section
122.32154.07 . One of the barber members shall be a member of, or recommended by, a union of
122.33journeymen barbers that has existed at least two years, and one barber member shall be a
122.34member of, or recommended by, a professional organization of barbers.
123.1(c) All cosmetologist members must be currently licensed in the field of cosmetology
123.2in Minnesota, have practiced in the licensed occupation for at least five years immediately
123.3prior to their appointment, be graduates from the 12th grade of high school or have
123.4equivalent education, and have knowledge of sections 154.40 to 154.54 and Minnesota
123.5Rules, chapters 2642 and 2644. The cosmetologist members shall be members of,
123.6or recommended by, a professional organization of cosmetologists, manicurists, or
123.7estheticians.
123.8    (d) Subd. 3. Membership terms. (a) Membership terms, compensation of
123.9members, removal of members, the filling of membership vacancies, and fiscal year and
123.10reporting requirements shall be as provided in sections 214.07 to 214.09. The provision of
123.11staff, administrative services and office space; the review and processing of complaints;
123.12the setting of board fees; and other provisions relating to board operations shall be as
123.13provided in chapter 214.
123.14(e) (b) Members appointed to fill vacancies caused by death, resignation, or removal
123.15shall serve during the unexpired term of their predecessors.
123.16(f) The barber members of the board shall separately oversee administration,
123.17enforcement, and regulation of, and adoption of rules under, sections 154.001, 154.002,
123.18154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26. The cosmetologist
123.19members of the board shall separately oversee administration, enforcement, and regulation
123.20of, and adoption of rules under, sections 154.40 to 154.54. Staff hired by the board,
123.21including inspectors, shall serve both professions.

123.22    Sec. 5. Minnesota Statutes 2008, section 154.19, is amended to read:
123.23154.19 VIOLATIONS.
123.24Each of the following constitutes a misdemeanor:
123.25(1) The violation of any of the provisions of section 154.01;
123.26(2) Permitting any person in one's employ, supervision, or control to practice as a
123.27registered barber or registered apprentice unless that person has a certificate of registration
123.28as a registered barber or registered apprentice;
123.29(3) Obtaining or attempting to obtain a certificate of registration for money other
123.30than the required fee, or any other thing of value, or by fraudulent misrepresentation;
123.31(4) Practicing or attempting to practice by fraudulent misrepresentation;
123.32(5) The willful failure to display a certificate of registration as required by section
123.33154.14 ;
123.34(6) The use of any room or place for barbering which is also used for residential or
123.35business purposes, except the sale of hair tonics, lotions, creams, cutlery, toilet articles,
124.1cigars, tobacco, candies in original package, and such commodities as are used and sold in
124.2barber shops, and except that shoeshining and an agency for the reception and delivery of
124.3laundry, or either, may be conducted in a barber shop without the same being construed
124.4as a violation of this section, unless a substantial partition of ceiling height separates the
124.5portion used for residential or business purposes, and where a barber shop is situated in a
124.6residence, poolroom, confectionery, store, restaurant, garage, clothing store, liquor store,
124.7hardware store, or soft drink parlor, there must be an outside entrance leading into the
124.8barber shop independent of any entrance leading into such business establishment, except
124.9that this provision as to an outside entrance shall not apply to barber shops in operation at
124.10the time of the passage of this section and except that a barber shop and beauty parlor may
124.11be operated in conjunction, without the same being separated by partition of ceiling height;
124.12(7) The failure or refusal of any barber or other person in charge of any barber shop,
124.13or any person in barber schools or colleges doing barber service work, to use separate
124.14and clean towels for each customer or patron, or to discard and launder each towel after
124.15once being used;
124.16(8) The failure or refusal by any barber or other person in charge of any barber shop
124.17or barber school or barber college to supply clean hot and cold water in such quantities as
124.18may be necessary to conduct such shop, or the barbering service of such school or college,
124.19in a sanitary manner, or the failure or refusal of any such person to have water and sewer
124.20connections from such shop, or barber school or college, with municipal water and sewer
124.21systems where the latter are available for use, or the failure or refusal of any such person
124.22to maintain a receptacle for hot water of a capacity of not less than five gallons;
124.23(9) For the purposes of sections 154.001, 154.002, 154.003, 154.01 to 154.161,
124.24154.19 to 154.21, and 154.24 to 154.26 this section, barbers, students, apprentices, or
124.25the proprietor or manager of a barber shop, or barber school or barber college, shall be
124.26responsible for all violations of the sanitary provisions of sections 154.001, 154.002,
124.27154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 this section, and if
124.28any barber shop, or barber school or barber college, upon inspection, shall be found to be
124.29in an unsanitary condition, the person making such inspection shall immediately issue an
124.30order to place the barber shop, or barber school, or barber college, in a sanitary condition,
124.31in a manner and within a time satisfactory to the Board of Barber and Cosmetologist
124.32Examiners, and for the failure to comply with such order the board shall immediately
124.33file a complaint for the arrest of the persons upon whom the order was issued, and any
124.34registered barber who shall fail to comply with the rules adopted by the Board of Barber
124.35and Cosmetologist Examiners, with the approval of the state commissioner of health, or
124.36the violation or commission of any of the offenses described in this section and section
125.1154.16 154.161, subdivision 4, paragraph (a), clauses (1), (2), (3), and (4), (5), (6), (7),
125.2(8), (9) to (12), and of clauses (1), (2), (3), (4), (5), (6), (7), (8), and (9) of this section,
125.3shall be fined not less than $10 or imprisoned for ten days and not more than $100 or
125.4imprisoned for 90 days.

125.5    Sec. 6. Minnesota Statutes 2008, section 154.44, subdivision 1, is amended to read:
125.6    Subdivision 1. Schedule. The fee schedule for licensees is as follows:
125.7(a) Three-year license fees:
125.8(1) cosmetologist, manicurist, esthetician, $90 for each initial license, and $60 for
125.9each renewal;
125.10(2) instructor, manager, $120 for each initial license, and $90 for each renewal;
125.11(3) salon, $130 for each initial license, and $100 for each renewal; and
125.12(4) school, $1,500.
125.13(b) Penalties:
125.14(1) reinspection fee, variable; and
125.15(2) manager with lapsed practitioner, $25;
125.16(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and
125.17instructor license, $45; and
125.18(4) expired salon or school license, $50.
125.19(c) Administrative fees:
125.20(1) certificate of identification, $20; and
125.21(2) school original application, $150;
125.22(3) name change, $20;
125.23(4) letter of license verification, $30;
125.24(5) duplicate license, $20; and
125.25(6) processing fee, $10.
125.26(d) All fees established in this subdivision must be paid to the executive secretary
125.27of the board. The executive secretary of the board shall deposit the fees in the general
125.28fund in the state treasury.

125.29    Sec. 7. Minnesota Statutes 2008, section 154.51, is amended to read:
125.30154.51 ENFORCEMENT.
125.31    Subdivision 1. Proceedings. The provisions of section 154.161 apply to the
125.32administration of sections 154.40 to 154.54. If the board, or a complaint committee if
125.33authorized by the board, has a reasonable basis for believing that a person has engaged in
125.34or is about to engage in a violation of a statute, rule, or order that the board has adopted
126.1or issued or is empowered to enforce, the board or complaint committee may proceed as
126.2provided in subdivision 2 or 3. Except as otherwise provided in this section, all hearings
126.3must be conducted in accordance with the Administrative Procedure Act.
126.4    Subd. 2. Legal actions. (a) When necessary to prevent an imminent violation of a
126.5statute, rule, or order that the board has adopted or issued or is empowered to enforce, the
126.6board, or a complaint committee if authorized by the board, may bring an action in the
126.7name of the state in the District Court of Ramsey County in which jurisdiction is proper to
126.8enjoin the act or practice and to enforce compliance with the statute, rule, or order. On a
126.9showing that a person has engaged in or is about to engage in an act or practice that
126.10constitutes a violation of a statute, rule, or order that the board has adopted or issued
126.11or is empowered to enforce, the court shall grant a permanent or temporary injunction,
126.12restraining order, or other appropriate relief.
126.13(b) For purposes of injunctive relief under this subdivision, irreparable harm exists
126.14when the board shows that a person has engaged in or is about to engage in an act or
126.15practice that constitutes violation of a statute, rule, or order that the board has adopted or
126.16issued or is empowered to enforce.
126.17(c) Injunctive relief granted under paragraph (a) does not relieve an enjoined person
126.18from criminal prosecution by a competent authority, or from action by the board under
126.19subdivision 3, 4, 5, or 6 with respect to the person's license or registration, or application
126.20for examination, license, registration, or renewal.
126.21    Subd. 3. Cease and desist orders. (a) The board, or complaint committee if
126.22authorized by the board, may issue and have served upon an unlicensed or unregistered
126.23person, or a holder of a license or registration, an order requiring the person to cease and
126.24desist from an act or practice that constitutes a violation of a statute, rule, or order that
126.25the board has adopted or issued or is empowered to enforce. The order must (1) give
126.26reasonable notice of the rights of the person named in the order to request a hearing,
126.27and (2) state the reasons for the entry of the order. No order may be issued under this
126.28subdivision until an investigation of the facts has been conducted under section 214.10.
126.29(b) Service of the order under this subdivision is effective when the order is
126.30personally served on the person or counsel of record, or served by certified mail to the
126.31most recent address provided to the board for the person or counsel of record.
126.32(c) The board must hold a hearing under this subdivision not later than 30 days after
126.33the board receives the request for the hearing, unless otherwise agreed between the board,
126.34or complaint committee if authorized by the board, and the person requesting the hearing.
126.35(d) Notwithstanding any rule to the contrary, the administrative law judge must issue
126.36a report within 30 days of the close of the contested case hearing. Within 30 days after
127.1receiving the report and subsequent exceptions and argument, the board shall issue a
127.2further order vacating, modifying, or making permanent the cease and desist order. If no
127.3hearing is requested within 30 days of service of the order, the order becomes final and
127.4remains in effect until modified or vacated by the board.
127.5    Subd. 4. Licensing and registration actions. (a) With respect to a person who is a
127.6holder of or applicant for a license or registration under this chapter, the board may by
127.7order deny, refuse to renew, suspend, temporarily suspend, or revoke the application,
127.8license, or registration, censure or reprimand the person, refuse to permit the person to
127.9sit for examination, or refuse to release the person's examination grades, if the board
127.10finds that such an order is in the public interest and that, based on a preponderance of the
127.11evidence presented, the person has:
127.12(1) violated a statute, rule, or order that the board has adopted or issued or is
127.13empowered to enforce;
127.14(2) engaged in conduct or acts that are fraudulent, deceptive, or dishonest, whether
127.15or not the conduct or acts relate to the practice of a profession regulated by this chapter, if
127.16the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on the person's
127.17ability or fitness to engage in the practice of the profession;
127.18(3) engaged in conduct or acts that constitute malpractice, are negligent, demonstrate
127.19incompetence, or are otherwise in violation of the standards in the rules of the board,
127.20where the conduct or acts relate to the practice of a profession regulated by this chapter;
127.21(4) employed fraud or deception in obtaining a license, registration, renewal, or
127.22reinstatement, or in passing all or a portion of the examination;
127.23(5) had a license, registration, right to examine, or other similar authority revoked in
127.24another jurisdiction;
127.25(6) failed to meet any requirement for issuance or renewal of the person's license
127.26or registration;
127.27(7) practiced in a profession regulated by this chapter while having an infectious or
127.28contagious disease;
127.29(8) advertised by means of false or deceptive statements;
127.30(9) demonstrated intoxication or indulgence in the use of drugs, including but not
127.31limited to narcotics as defined in section 152.01 or in United States Code, title 26, section
127.324731, barbiturates, amphetamines, Benzedrine, Dexedrine, or other sedatives, depressants,
127.33stimulants, or tranquilizers;
127.34(10) demonstrated unprofessional conduct or practice;
127.35(11) permitted an employee or other person under the person's supervision or control
127.36to practice as a licensee, registrant, or instructor of a profession regulated by this chapter
128.1unless that person has (i) a current license or registration issued by the board, (ii) a
128.2temporary apprentice permit, or (iii) a temporary permit as an instructor of a profession
128.3regulated by the board;
128.4(12) practices, offered to practice, or attempted to practice by misrepresentation;
128.5(13) failed to display a license or registration as required by rules adopted by the
128.6board;
128.7(14) used any room or place of practice of a profession regulated by the board that
128.8is also used for any other purpose, or used any room or place of practice of a profession
128.9regulated by the board that violates the board's rules governing sanitation;
128.10(15) failed to use separate and clean towels for each customer or patron, or to discard
128.11and launder each towel after being used once;
128.12(16) in the case of a licensee, registrant, or other person in charge of any school or
128.13place of practice of a profession regulated by the board, (i) failed to supply in a sanitary
128.14manner clean hot and cold water in quantities necessary to conduct the service or practice
128.15of the profession regulated by the board, (ii) failed to have water and sewer connections
128.16from the place of practice or school with municipal water and sewer systems where they
128.17are available for use, or (iii) failed or refused to maintain a receptacle for hot water of a
128.18capacity of at least five gallons;
128.19(17) refused to permit the board to make an inspection permitted or required by this
128.20chapter, or failed to provide the board or the attorney general on behalf of the board
128.21with any documents or records they request;
128.22(18) failed promptly to renew a license or registration when remaining in practice,
128.23pay the required fee, or issue a worthless check;
128.24(19) failed to supervise an apprentice, or permitted the practice of a profession
128.25regulated by the board by a person not registered or licensed with the board or not holding
128.26a temporary permit;
128.27(20) refused to serve a customer because of race, color, creed, religion, disability,
128.28national origin, or sex;
128.29(21) failed to comply with a provision of chapter 141 or a provision of another
128.30chapter that relates to schools; or
128.31(22) with respect to temporary suspension orders, has committed an act, engaged
128.32in conduct, or committed practices that the board, or complaint committee if authorized
128.33by the board, has determined may result or may have resulted in an immediate threat
128.34to the public.
128.35(b) In lieu of or in addition to any remedy under paragraph (a), the board may, as a
128.36condition of continued licensure or registration, termination of suspension, reinstatement
129.1of licensure or registration, examination, or release of examination results, require that
129.2the person:
129.3(1) submit to a quality review of the person's ability, skills, or quality of work,
129.4conducted in a manner and by a person or entity that the board determines; or
129.5(2) completes to the board's satisfaction continuing education as the board requires.
129.6(c) Service of an order under this subdivision is effective if the order is served in
129.7person, or is served by certified mail to the most recent address provided to the board by
129.8the licensee, registrant, applicant, or counsel of record. The order must state the reason
129.9for the entry of the order.
129.10(d) Except as provided in subdivision 5, paragraph (c), all hearings under this
129.11subdivision must be conducted in accordance with the Administrative Procedure Act.
129.12    Subd. 5. Temporary suspension. (a) When the board, or complaint committee if
129.13authorized by the board, issues a temporary suspension order, the suspension provided for
129.14in the order is effective on service of a written copy of the order on the licensee, registrant,
129.15or counsel of record. The order must specify the statute, rule, or order violated by the
129.16licensee or registrant. The order remains in effect until the board issues a final order in the
129.17matter after a hearing, or on agreement between the board and the licensee or registrant.
129.18(b) An order under this subdivision may (1) prohibit the licensee or registrant from
129.19engaging in the practice of a profession regulated by the board in whole or in part, as the
129.20facts require, and (2) condition the termination of the suspension on compliance with a
129.21statute, rule, or order that the board has adopted or issued or is empowered to enforce.
129.22The order must state the reasons for entering the order and must set forth the right to
129.23a hearing as provided in this subdivision.
129.24(c) Within ten days after service of an order under this subdivision, the licensee or
129.25registrant may request a hearing in writing. The board must hold a hearing before its own
129.26members within five working days of the request for a hearing. The sole issue at the
129.27hearing must be whether there is a reasonable basis to continue, modify, or terminate the
129.28temporary suspension. The hearing is not subject to the Administrative Procedure Act.
129.29Evidence presented to the board or the licensee or registrant may be in affidavit form only.
129.30The licensee, registrant, or counsel of record may appear for oral argument.
129.31(d) Within five working days after the hearing, the board shall issue its order and, if
129.32the order continues the suspension, shall schedule a contested case hearing within 30 days
129.33of the issuance of the order. Notwithstanding any rule to the contrary, the administrative
129.34law judge shall issue a report within 30 days after the closing of the contested case hearing
129.35record. The board shall issue a final order within 30 days of receiving the report.
130.1    Subd. 6. Violations; penalties; costs. (a) The board may impose a civil penalty of
130.2up to $2,000 per violation on a person who violates a statute, rule, or order that the board
130.3has adopted or issued or is empowered to enforce.
130.4(b) In addition to any penalty under paragraph (a), the board may impose a fee
130.5to reimburse the board for all or part of the cost of (1) the proceedings resulting in
130.6disciplinary action authorized under this section, (2) the imposition of a civil penalty under
130.7paragraph (a), or (3) the issuance of a cease and desist order. The board may impose a
130.8fee under this paragraph when the board shows that the position of the person who has
130.9violated a statute, rule, or order that the board has adopted or issued or is empowered to
130.10enforce is not substantially justified unless special circumstances make such a fee unjust,
130.11notwithstanding any rule to the contrary. Costs under this paragraph include, but are not
130.12limited to, the amount paid by the board for services from the Office of Administrative
130.13Hearings, attorney fees, court reporter costs, witness costs, reproduction of records, board
130.14members' compensation, board staff time, and expenses incurred by board members and
130.15staff.
130.16(c) All hearings under this subdivision must be conducted in accordance with the
130.17Administrative Procedure Act.
130.18    Subd. 7. Reinstatement. Upon petition of the former or suspended licensee or
130.19registrant, the board may reinstate a suspended, revoked, or surrendered license or
130.20registration. The board may in its sole discretion place any conditions on reinstatement of
130.21a suspended, revoked, or surrendered license or registration that it finds appropriate and
130.22necessary to ensure that the purposes of this chapter are met. No license or registration
130.23may be reinstated until the former licensee or registrant has completed at least one-half
130.24of the suspension period.

130.25    Sec. 8. [155A.20] BOARD OF COSMETOLOGIST EXAMINERS CREATED;
130.26TERMS.
130.27(a) A Board of Cosmetologist Examiners is established to consist of three
130.28cosmetologist members and one public member, as defined in section 214.02, appointed
130.29by the governor.
130.30(b) All cosmetologist members must be currently licensed in the field of cosmetology
130.31in Minnesota, have practiced in the licensed occupation for at least five years immediately
130.32prior to their appointment, be graduates from grade 12 of high school or have equivalent
130.33education, and have knowledge of sections 154.40 to 154.54 and Minnesota Rules, chapters
130.342105 and 2110. The cosmetologist members shall be members of, or recommended by, a
130.35professional organization of cosmetologists, manicurists, or estheticians.
131.1(c) Membership terms, compensation of members, removal of members, the filling
131.2of membership vacancies, and fiscal year and reporting requirements shall be as provided
131.3in sections 214.07 to 214.09. The provision of staff, administrative services, and office
131.4space; the review and processing of complaints; the setting of board fees; and other
131.5provisions relating to board operations shall be as provided in chapter 214.
131.6(d) Members appointed to fill vacancies caused by death, resignation, or removal
131.7shall serve during the unexpired term of their predecessors.

131.8    Sec. 9. Minnesota Statutes 2008, section 178.02, subdivision 2, is amended to read:
131.9    Subd. 2. Terms. The board shall not expire. and The terms, compensation, and
131.10removal of appointed members shall be as provided in section 15.059.

131.11    Sec. 10. Minnesota Statutes 2008, section 182.656, subdivision 3, is amended to read:
131.12    Subd. 3. Meetings; expiration of council. A majority of the council members
131.13constitutes a quorum. The council shall meet at the call of its chair, or upon request of any
131.14six members. A tape recording of the meeting with the tape being retained for a one-year
131.15period will be available upon the request and payment of costs to any interested party. The
131.16council shall expire and the terms, compensation, and removal of members shall be as
131.17provided in section 15.059, except that the council shall not expire before June 30, 2003.

131.18    Sec. 11. Minnesota Statutes 2008, section 214.01, subdivision 3, is amended to read:
131.19    Subd. 3. Non-health-related licensing board. "Non-health-related licensing
131.20board" means the Board of Teaching established pursuant to section 122A.07, the Board
131.21of Barber Examiners established pursuant to section 154.001, the Board of Cosmetologist
131.22Examiners established pursuant to section 155A.20, the Board of Assessors established
131.23pursuant to section 270.41, the Board of Architecture, Engineering, Land Surveying,
131.24Landscape Architecture, Geoscience, and Interior Design established pursuant to section
131.25326.04 , the Private Detective and Protective Agent Licensing Board established pursuant
131.26to section 326.33, the Board of Accountancy established pursuant to section 326A.02, and
131.27the Peace Officer Standards and Training Board established pursuant to section 626.841.

131.28    Sec. 12. Minnesota Statutes 2008, section 214.04, subdivision 3, is amended to read:
131.29    Subd. 3. Officers; staff. The executive director of each health-related board and
131.30the executive secretary of each non-health-related board shall be the chief administrative
131.31officer for the board but shall not be a member of the board. The executive director or
131.32executive secretary shall maintain the records of the board, account for all fees received
132.1by it, supervise and direct employees servicing the board, and perform other services as
132.2directed by the board. The executive directors, executive secretaries, and other employees
132.3of the following boards shall be hired by the board, and the executive directors or executive
132.4secretaries shall be in the unclassified civil service, except as provided in this subdivision:
132.5    (1) Dentistry;
132.6    (2) Medical Practice;
132.7    (3) Nursing;
132.8    (4) Pharmacy;
132.9    (5) Accountancy;
132.10    (6) Architecture, Engineering, Land Surveying, Landscape Architecture,
132.11Geoscience, and Interior Design;
132.12    (7) Barber Examiners;
132.13    (8) Cosmetology Cosmetologist Examiners;
132.14    (9) Teaching;
132.15    (10) Peace Officer Standards and Training;
132.16    (11) Social Work;
132.17    (12) Marriage and Family Therapy;
132.18    (13) Dietetics and Nutrition Practice;
132.19    (14) Licensed Professional Counseling; and
132.20    (15) Combative Sports Commission.
132.21    The executive directors or executive secretaries serving the boards are hired by those
132.22boards and are in the unclassified civil service, except for part-time executive directors
132.23or executive secretaries, who are not required to be in the unclassified service. Boards
132.24not requiring full-time executive directors or executive secretaries may employ them on
132.25a part-time basis. To the extent practicable, the sharing of part-time executive directors
132.26or executive secretaries by boards being serviced by the same department is encouraged.
132.27Persons providing services to those boards not listed in this subdivision, except executive
132.28directors or executive secretaries of the boards and employees of the attorney general, are
132.29classified civil service employees of the department servicing the board. To the extent
132.30practicable, the commissioner shall ensure that staff services are shared by the boards
132.31being serviced by the department. If necessary, a board may hire part-time, temporary
132.32employees to administer and grade examinations.

132.33    Sec. 13. Minnesota Statutes 2008, section 216B.1612, subdivision 2, is amended to
132.34read:
133.1    Subd. 2. Definitions. (a) The terms used in this section have the meanings given
133.2them in this subdivision.
133.3    (b) "C-BED tariff" or "tariff" means a community-based energy development tariff.
133.4    (c) "Qualifying owner" means:
133.5    (1) a Minnesota resident;
133.6    (2) a limited liability company that is organized under chapter 322B and that is made
133.7up of members who are Minnesota residents;
133.8    (3) a Minnesota nonprofit organization organized under chapter 317A;
133.9    (4) a Minnesota cooperative association organized under chapter 308A or 308B,
133.10including a rural electric cooperative association or a generation and transmission
133.11cooperative on behalf of and at the request of a member distribution utility;
133.12    (5) a Minnesota political subdivision or local government including, but not limited
133.13to, a municipal electric utility, or a municipal power agency on behalf of and at the request
133.14of a member distribution utility, the office of the commissioner of Iron Range resources
133.15and rehabilitation, a county, statutory or home rule charter city, town, school district, or
133.16public or private higher education institution or any other local or regional governmental
133.17organization such as a board, commission, or association; or
133.18    (6) a tribal council.
133.19    (d) "Net present value rate" means a rate equal to the net present value of the
133.20nominal payments to a project divided by the total expected energy production of the
133.21project over the life of its power purchase agreement.
133.22    (e) "Standard reliability criteria" means:
133.23    (1) can be safely integrated into and operated within the utility's grid without causing
133.24any adverse or unsafe consequences; and
133.25    (2) is consistent with the utility's resource needs as identified in its most recent
133.26resource plan submitted under section 216B.2422.
133.27    (f) "Renewable" refers to a technology listed in section 216B.1691, subdivision 1,
133.28paragraph (a).
133.29    (g) "Community-based energy development project" or "C-BED project" means a
133.30new renewable energy project that either as a stand-alone project or part of a partnership
133.31under subdivision 8:
133.32    (1) has no single qualifying owner owning more than 15 percent of a C-BED wind
133.33energy project unless: (i) the C-BED wind energy project consists of only one or two
133.34turbines; or (ii) the qualifying owner is a public entity listed under paragraph (c), clause
133.35(5), that is not a municipal utility;
134.1    (2) demonstrates that at least 51 percent of the gross revenues from a power
134.2purchase agreement over the life of the project will flow to qualifying owners and other
134.3local entities; and
134.4    (3) has a resolution of support adopted by the county board of each county in which
134.5the project is to be located, or in the case of a project located within the boundaries of a
134.6reservation, the tribal council for that reservation.
134.7EFFECTIVE DATE.This section is effective the day following final enactment.

134.8    Sec. 14. Minnesota Statutes 2008, section 298.2213, subdivision 5, is amended to read:
134.9    Subd. 5. Advisory committees. Before submission to the board of a proposal for a
134.10project for expenditure of money appropriated under this section, the commissioner of Iron
134.11Range resources and rehabilitation shall appoint a technical advisory committee consisting
134.12of at least seven persons who are knowledgeable in areas related to the objectives of
134.13the proposal. If the project involves investment in a scientific research proposal, at
134.14least four of the committee members must be knowledgeable in the specific scientific
134.15research area relating to the project. Members of the committees must be compensated as
134.16provided in section 15.059, subdivision 3. The board shall not act on a proposal until it
134.17has received the evaluation and recommendations of the technical advisory committee.
134.18Notwithstanding section 15.059, the committees do not expire.

134.19    Sec. 15. Minnesota Statutes 2008, section 298.2214, subdivision 1, is amended to read:
134.20    Subdivision 1. Creation of committee; purpose. A committee is created to
134.21advise the commissioner of Iron Range resources and rehabilitation on providing higher
134.22education programs in the taconite assistance area defined in section 273.1341. The
134.23committee is subject to section 15.059 but does not expire.

134.24    Sec. 16. Minnesota Statutes 2008, section 298.297, is amended to read:
134.25298.297 ADVISORY COMMITTEES.
134.26Before submission of a project to the board, the commissioner of Iron Range
134.27resources and rehabilitation shall appoint a technical advisory committee consisting of
134.28one or more persons who are knowledgeable in areas related to the objectives of the
134.29proposal. Members of the committees shall be compensated as provided in section 15.059,
134.30subdivision 3
. The board shall not act on a proposal until it has received the evaluation
134.31and recommendations of the technical advisory committee or until 15 days have elapsed
135.1since the proposal was transmitted to the advisory committee, whichever occurs first.
135.2Notwithstanding section 15.059, the committees do not expire.

135.3    Sec. 17. Laws 2007, chapter 135, article 1, section 16, is amended to read:
135.4
Sec. 16. TRANSFERS
135.5The commissioner of labor and industry shall
135.6transfer $1,627,000 by June 30, 2008, and
135.7$1,515,000 by June 30, 2009, and each year
135.8thereafter, from the construction code fund to
135.9the general fund.
135.10Of the balance remaining in Laws 2005, First
135.11Special Session chapter 1, article 3, section
135.122, subdivision 2, for the methamphetamine
135.13laboratory cleanup revolving loan fund,
135.14$100,000 is for transfer to the small
135.15community wastewater treatment account
135.16established in Minnesota Statutes, section
135.17446A.075, subdivision 1 .

135.18    Sec. 18. TRANSFER OF AUTHORITY AND STAFF.
135.19    Subdivision 1. Transfer of authority. (a) The responsibilities of the Board of
135.20Barber and Cosmetologist Examiners covered in Minnesota Statutes 2008, sections
135.21154.001 to 154.26, are transferred under Minnesota Statutes, section 15.039, to the Board
135.22of Barber Examiners.
135.23(b) The responsibilities of the Board of Barber and Cosmetologist Examiners
135.24covered in Minnesota Statutes 2008, sections 154.40 to 154.54, are transferred under
135.25Minnesota Statutes, section 15.039, to the Board of Cosmetologist Examiners.
135.26    Subd. 2. Rulemaking. Rulemaking authority pursuant to Minnesota Statutes
135.272008, sections 154.001 to 154.26, of the Board of Barber and Cosmetologist Examiners
135.28is transferred to the Board of Barber Examiners. Rulemaking authority pursuant to
135.29Minnesota Statutes 2008, sections 154.40 to 154.54, of the Board of Barber and
135.30Cosmetologist Examiners is transferred to the Board of Cosmetologist Examiners. All
135.31rules adopted by the Board of Barber and Cosmetologist Examiners in Minnesota Rules,
135.32chapter 2100, remain in effect and shall be enforced until amended or repealed according
135.33to law by the Board of Barber Examiners. All rules adopted by the Board of Barber
136.1and Cosmetologist Examiners in Minnesota Rules, chapters 2105 and 2110, remain in
136.2effect and shall be enforced until amended or repealed according to law by the Board of
136.3Cosmetologist Examiners.
136.4    Subd. 3. Transfer of board members. The board members serving in unexpired
136.5terms appointed to the Board of Barber and Cosmetologist Examiners pursuant to
136.6Minnesota Statutes 2008, section 154.001, paragraph (b), shall be appointed to serve the
136.7remainder of their terms as members of the Board of Barber Examiners, notwithstanding
136.8the requirements of Minnesota Statutes, section 154.001, subdivision 2. The board
136.9members serving in unexpired terms appointed to the Board of Barber and Cosmetologist
136.10Examiners pursuant to Minnesota Statutes 2008, section 154.001, paragraph (c), shall be
136.11appointed to serve the remainder of their terms as members of the Board of Cosmetologist
136.12Examiners, notwithstanding the requirements of Minnesota Statutes, section 155A.20.
136.13    Subd. 4. Transfer of staff. (a) The staff of the Board of Barber and Cosmetologist
136.14Examiners is transferred to the Board of Barber Examiners and the Board of Cosmetologist
136.15Examiners under Minnesota Statutes, section 15.039, according to the requirements of
136.16paragraph (b). In addition to any other protection, no employee shall suffer job loss,
136.17have a salary reduced, or have employment benefits reduced as a result of the transfer
136.18of authority from the Board of Barber and Cosmetologist Examiners recommended or
136.19mandated by this section. No action taken after January 1, 2010, shall be considered a
136.20result of the transfer of authority for the purposes of this section.
136.21(b) On or before June 1, 2009, the Board of Barber and Cosmetologist Examiners
136.22must designate to which board each employee will transfer to under paragraph (a), and the
136.23board must notify each affected employee of the designation in writing.
136.24    Subd. 5. Exemption from hiring freeze. Notwithstanding any law, policy, or
136.25executive order that restricts the hiring of new employees or institutes a hiring freeze, the
136.26Board of Barber Examiners and the Board of Cosmetologist Examiners may hire staff
136.27necessary to accomplish their statutory duties. This exemption expires on December
136.2831, 2009.
136.29EFFECTIVE DATE.This section is effective July 1, 2009, except that the
136.30requirements of subdivision 4, paragraph (b), are effective the day following final
136.31enactment.

136.32    Sec. 19. COMMISSIONER OF FINANCE TO ALLOCATE FUNDS.
136.33The commissioner of finance shall allocate the 2010 and 2011 appropriations to the
136.34Board of Barber and Cosmetologist Examiners between the Board of Barber Examiners
137.1and the Board of Cosmetologist Examiners in a ratio that each organization received
137.2when it was separate.

137.3    Sec. 20. REVISOR'S INSTRUCTION.
137.4(a) The revisor of statutes shall delete "Board of Barber and Cosmetologist
137.5Examiners" and substitute "board" or "Board of Barber Examiners," as appropriate,
137.6wherever it appears in Minnesota Statutes, sections 154.001 to 154.26, and Minnesota
137.7Rules, chapter 2100.
137.8(b) The revisor of statutes shall delete "Board of Barber and Cosmetologist
137.9Examiners" and substitute "board" or "Board of Cosmetologist Examiners," as appropriate,
137.10wherever it appears in Minnesota Statutes, sections 154.40 to 154.54, and Minnesota
137.11Rules, chapters 2105 and 2110.
137.12(c) The revisor of statutes shall renumber each section of Minnesota Statutes listed
137.13in column A with the number listed in column B. The revisor shall also make necessary
137.14cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the
137.15renumbering.
137.16
Column A
Column B
137.17
154.40
155A.21
137.18
154.41
155A.22
137.19
154.42
155A.23
137.20
154.43
155A.24
137.21
154.44
155A.25
137.22
154.45
155A.26
137.23
154.46
155A.27
137.24
154.465
155A.28
137.25
154.47
155A.29
137.26
154.48
155A.30
137.27
154.49
155A.31
137.28
154.50
155A.32
137.29
154.51
155A.33
137.30
154.52
155A.34
137.31
154.53
155A.35
137.32
154.54
155A.36

137.33    Sec. 21. REPEALER.
137.34Minnesota Statutes 2008, section 176.135, subdivision 1b, is repealed.

138.1ARTICLE 8
138.2IRON RANGE RESOURCES

138.3    Section 1. Minnesota Statutes 2008, section 116J.424, is amended to read:
138.4116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
138.5CONTRIBUTION.
138.6The commissioner of the Iron Range Resources and Rehabilitation Board with
138.7approval of the board by at least seven Iron Range Resources and Rehabilitation Board
138.8members, shall provide an equal match for any loan or equity investment made for a
138.9facility located in the tax relief area defined in section 273.134, paragraph (b), by the
138.10Minnesota minerals 21st century fund created by section 116J.423. The match may be
138.11in the form of a loan or equity investment, notwithstanding whether the fund makes a
138.12loan or equity investment. The state shall not acquire an equity interest because of an
138.13equity investment or loan by the board and the board at its sole discretion shall decide
138.14what interest it acquires in a project. The commissioner of employment and economic
138.15development may require a commitment from the board to make the match prior to
138.16disbursing money from the fund.

138.17    Sec. 2. [298.217] IRON RANGE RESOURCES AND REHABILITATION;
138.18EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
138.19(a) Notwithstanding any law to the contrary, the commissioner of Iron Range
138.20resources and rehabilitation, in consultation with the commissioner of management and
138.21budget, may offer a targeted early separation incentive program for employees of the
138.22commissioner who have attained the age of 60 years or who have received credit for at
138.23least 30 years of allowable service under the provisions of chapter 352.
138.24(b) The early separation incentive program may include one or more of the following:
138.25(1) employer-paid postseparation health, medical, and dental insurance until age
138.2665; and
138.27(2) cash incentives that may, but are not required to be, used to purchase additional
138.28years of service credit through the Minnesota State Retirement System, to the extent that
138.29the purchases are otherwise authorized by law.
138.30(c) The commissioner of Iron Range resources and rehabilitation shall establish
138.31eligibility requirements for employees to receive an incentive.
138.32(d) The commissioner of Iron Range resources and rehabilitation, consistent with the
138.33established program provisions under paragraph (b), and with the eligibility requirements
139.1under paragraph (c), may designate specific programs or employees as eligible to be
139.2offered the incentive program.
139.3(e) Acceptance of the offered incentive must be voluntary on the part of the
139.4employee and must be in writing. The incentive may only be offered at the sole discretion
139.5of the commissioner of Iron Range resources and rehabilitation.
139.6(f) The cost of the incentive is payable solely by funds made available to the
139.7commissioner of Iron Range resources and rehabilitation by law, but only on prior approval
139.8of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.
139.9(g) This section and section 298.218 are repealed June 30, 2011.

139.10    Sec. 3. [298.218] APPLICATION OF OTHER LAWS.
139.11Unilateral implementation of section 298.217 by the commissioner of Iron Range
139.12resources and rehabilitation is not an unfair labor practice under chapter 179A.

139.13    Sec. 4. Minnesota Statutes 2008, section 298.22, subdivision 2, is amended to read:
139.14    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby
139.15created the Iron Range Resources and Rehabilitation Board, consisting of 13 members,
139.16five of whom are state senators appointed by the Subcommittee on Committees of the
139.17Rules Committee of the senate, and five of whom are representatives, appointed by the
139.18speaker of the house. The remaining members shall be appointed one each by the senate
139.19majority leader, the speaker of the house, and the governor and must be nonlegislators
139.20who reside in a taconite assistance area as defined in section 273.1341. The members shall
139.21be appointed in January of every odd-numbered year, except that the initial nonlegislator
139.22members shall be appointed by July 1, 1999, and shall serve until January of the next
139.23odd-numbered year. Vacancies on the board shall be filled in the same manner as the
139.24original members were chosen. At least a majority of the legislative members of the board
139.25shall be elected from state senatorial or legislative districts in which over 50 percent
139.26of the residents reside within a taconite assistance area as defined in section 273.1341.
139.27All expenditures and projects made by the commissioner of Iron Range resources and
139.28rehabilitation shall be consistent with the priorities established in subdivision 8 and shall
139.29first be submitted to the Iron Range Resources and Rehabilitation Board for approval of
139.30expenditures and projects for rehabilitation purposes as provided by this section, and
139.31the method, manner, and time of payment of all funds proposed to be disbursed, by a
139.32majority of the board of expenditures and projects for rehabilitation purposes as provided
139.33by this section, and the method, manner, and time of payment of all funds proposed to be
139.34disbursed shall be first approved or disapproved by the board at least seven Iron Range
140.1Resources and Rehabilitation Board members. The board shall biennially make its report
140.2to the governor and the legislature on or before November 15 of each even-numbered
140.3year. The expenses of the board shall be paid by the state from the funds raised pursuant to
140.4this section. Members of the board who are legislators may be reimbursed for expenses
140.5in the manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per
140.6diem payments during the interims between legislative sessions in the manner provided
140.7in section 3.099, subdivision 1. Members of the board who are not legislators may
140.8receive per diem payments and be reimbursed for expenses at the lowest rate provided
140.9for legislative members.
140.10EFFECTIVE DATE.This section is effective the day following final enactment.

140.11    Sec. 5. Minnesota Statutes 2008, section 298.22, subdivision 5a, is amended to read:
140.12    Subd. 5a. Forest trust. The commissioner, upon the affirmative vote of a majority
140.13of the members of the board, of at least seven Iron Range Resources and Rehabilitation
140.14Board members, may purchase forest lands in the taconite assistance area defined in under
140.15section 273.1341 with funds specifically authorized for the purchase. The acquired forest
140.16lands must be held in trust for the benefit of the citizens of the taconite assistance area
140.17as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed and
140.18developed for recreation and economic development purposes. The commissioner, upon
140.19the affirmative vote of a majority of the members of the board, of at least seven Iron Range
140.20Resources and Rehabilitation Board members, may sell forest lands purchased under this
140.21subdivision if the board finds that the sale advances the purposes of the trust. Proceeds
140.22derived from the management or sale of the lands and from the sale of timber or removal
140.23of gravel or other minerals from these forest lands shall be deposited into an Iron Range
140.24Miners' Memorial Forest account that is established within the state financial accounts.
140.25Funds may be expended from the account upon approval of a majority of the members
140.26of the board by at least seven Iron Range Resources and Rehabilitation Board members,
140.27to purchase, manage, administer, convey interests in, and improve the forest lands. By
140.28majority an affirmative vote of the members of the board, of at least seven Iron Range
140.29Resources and Rehabilitation Board members, money in the Iron Range Miners' Memorial
140.30Forest account may be transferred into the corpus of the Douglas J. Johnson economic
140.31protection trust fund established under sections 298.291 to 298.294. The property acquired
140.32under the authority granted by this subdivision and income derived from the property or
140.33the operation or management of the property are exempt from taxation by the state or its
140.34political subdivisions while held by the forest trust.

141.1    Sec. 6. Minnesota Statutes 2008, section 298.22, subdivision 6, is amended to read:
141.2    Subd. 6. Private entity participation. The board may acquire an equity interest in
141.3any project for which it provides funding. The commissioner may establish, participate in
141.4the management of, and dispose of the assets of charitable foundations, nonprofit limited
141.5liability companies, and nonprofit corporations associated with any project for which it
141.6provides funding, including specifically, but without limitation, a corporation within the
141.7meaning of section 317A.011, subdivision 6.

141.8    Sec. 7. Minnesota Statutes 2008, section 298.22, subdivision 7, is amended to read:
141.9    Subd. 7. Project area development authority. (a) In addition to the other powers
141.10granted in this section and other law and notwithstanding any limitations contained in
141.11subdivision 5, the commissioner, for purposes of fostering economic development and
141.12tourism within the Giants Ridge Recreation Area or the Ironworld Discovery Center area,
141.13may spend any money made available to the agency under section 298.28 to acquire real
141.14or personal property or interests therein by gift, purchase, or lease and may convey by
141.15lease, sale, or other means of conveyance or commitment any or all property interests
141.16owned or administered by the commissioner within such areas.
141.17(b) In furtherance of development of the Giants Ridge Recreation Area or the
141.18Ironworld Discovery Center area, the commissioner may establish and participate in
141.19charitable foundations, nonprofit limited liability companies, and nonprofit corporations,
141.20including a corporation within the meaning of section 317A.011, subdivision 6.
141.21(c) The term "Giants Ridge recreation area" refers to an economic development
141.22project area established by the commissioner in furtherance of the powers delegated in this
141.23section within St. Louis County in the western following portions of the town of White and
141.24in the eastern portion of the westerly, adjacent, unorganized township. city of Biwabik:
141.25Township 59 North, Range 15 West, Sections 7, 8, 17-20 and 29-32;
141.26Township 59 North, Range 16 West, Sections 12, 13, 24, 25, and 36;
141.27Township 58 North, Range 16 West, Section 1; and
141.28Township 58 North, Range 15 West, Sections 5 and 6.
141.29(d) The term "Ironworld Discovery Center area" refers to means an economic
141.30development and tourism promotion project area established by the commissioner in
141.31furtherance of the powers delegated in this section within St. Louis County in the south
141.32portion of the town of Balkan.

141.33    Sec. 8. Minnesota Statutes 2008, section 298.22, subdivision 8, is amended to read:
142.1    Subd. 8. Spending priority. In making or approving any expenditures on programs
142.2or projects, the commissioner and the board shall give the highest priority to programs
142.3and projects that target relief to those areas of the taconite assistance area as defined in
142.4section 273.1341, that have the largest percentages of job losses and population losses
142.5directly attributable to the economic downturn in the taconite industry since the 1980s.
142.6The commissioner and the board shall compare the 1980 population and employment
142.7figures with the 2000 population and employment figures, and shall specifically consider
142.8the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company,
142.9in making or approving expenditures consistent with this subdivision, as well as the areas
142.10of residence of persons who suffered job loss for which relief is to be targeted under this
142.11subdivision. The commissioner may lease, for a term not exceeding 50 years and upon
142.12the terms determined by the commissioner and approved by the board at least seven Iron
142.13Range Resources and Rehabilitation Board members, surface and mineral interests owned
142.14or acquired by the state of Minnesota acting by and through the office of the commissioner
142.15of Iron Range resources and rehabilitation within those portions of the taconite assistance
142.16area affected by the closure of the LTV Steel Mining Company facility near Hoyt Lakes.
142.17The payments and royalties from these leases must be deposited into the fund established
142.18in section 298.292. This subdivision supersedes any other conflicting provisions of law
142.19and does not preclude the commissioner and the board from making expenditures for
142.20programs and projects in other areas.
142.21EFFECTIVE DATE.This section is effective the day following final enactment.

142.22    Sec. 9. Minnesota Statutes 2008, section 298.22, subdivision 10, is amended to read:
142.23    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range
142.24resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or
142.25Giants Ridge Golf and Ski Resort without prior approval by a majority vote of the board at
142.26least seven Iron Range Resources and Rehabilitation Board members.
142.27EFFECTIVE DATE.This section is effective the day following final enactment.

142.28    Sec. 10. Minnesota Statutes 2008, section 298.22, subdivision 11, is amended to read:
142.29    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
142.30shall annually prepare a budget for operational expenditures, programs, and projects, and
142.31submit it to the Iron Range Resources and Rehabilitation Board and the governor for
142.32approval. After the budget is approved by the board at least seven Iron Range Resources
143.1and Rehabilitation Board members and the governor, the commissioner may spend money
143.2in accordance with the approved budget.
143.3EFFECTIVE DATE.This section is effective the day following final enactment.

143.4    Sec. 11. Minnesota Statutes 2008, section 298.221, is amended to read:
143.5298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
143.6(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
143.7pursuant to the terms of any contract entered into by the state under authority of section
143.8298.22 and any fees which may, in the discretion of the commissioner of Iron Range
143.9resources and rehabilitation, be charged in connection with any project pursuant to that
143.10section as amended, shall be deposited in the state treasury to the credit of the Iron Range
143.11Resources and Rehabilitation Board account in the special revenue fund and are hereby
143.12appropriated for the purposes of section 298.22.
143.13(b) Notwithstanding section 16A.013, merchandise may be accepted by the
143.14commissioner of the Iron Range Resources and Rehabilitation Board for payment of
143.15advertising contracts if the commissioner determines that the merchandise can be used
143.16for special event prizes or mementos at facilities operated by the board. Nothing in this
143.17paragraph authorizes the commissioner or a member of the board to receive merchandise
143.18for personal use.
143.19(c) All fees charged by the commissioner in connection with public use of the
143.20state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
143.21revenues derived by the commissioner from the operation or lease of those facilities
143.22and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
143.23Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
143.24Board account that is created within the state enterprise fund. All funds deposited in the
143.25enterprise fund account are appropriated to the commissioner to be expended, subject
143.26to approval of a majority of the board, by at least seven Iron Range Resources and
143.27Rehabilitation Board members, as follows:
143.28(1) to pay costs associated with the construction, equipping, operation, repair, or
143.29improvement of the Giants Ridge Recreation Area facilities or lands;
143.30(2) to pay principal, interest and associated bond issuance, reserve, and servicing
143.31costs associated with the financing of the facilities; and
143.32(3) to pay the costs of any other project authorized under section 298.22.
143.33EFFECTIVE DATE.This section is effective the day following final enactment.

144.1    Sec. 12. Minnesota Statutes 2008, section 298.2211, subdivision 3, is amended to read:
144.2    Subd. 3. Project approval. All projects authorized by this section shall be
144.3submitted by the commissioner to the Iron Range Resources and Rehabilitation Board,
144.4which shall recommend approval or disapproval or modification of the projects for
144.5approval by at least seven Iron Range Resources and Rehabilitation Board members.
144.6Prior to the commencement of a project involving the exercise by the commissioner of
144.7any authority of sections 469.174 to 469.179, the governing body of each municipality in
144.8which any part of the project is located and the county board of any county containing
144.9portions of the project not located in an incorporated area shall by majority vote approve
144.10or disapprove the project. Any project, as so approved by the board at least seven Iron
144.11Range Resources and Rehabilitation Board members and the applicable governing bodies,
144.12if any, together with detailed information concerning the project, its costs, the sources of
144.13its funding, and the amount of any bonded indebtedness to be incurred in connection
144.14with the project, shall be transmitted to the governor, who shall approve, disapprove, or
144.15return the proposal for additional consideration within 30 days of receipt. No project
144.16authorized under this section shall be undertaken, and no obligations shall be issued and
144.17no tax increments shall be expended for a project authorized under this section until the
144.18project has been approved by the governor.
144.19EFFECTIVE DATE.This section is effective the day following final enactment.

144.20    Sec. 13. Minnesota Statutes 2008, section 298.2213, subdivision 4, is amended to read:
144.21    Subd. 4. Project approval. The board and commissioner shall by August 1 each
144.22year prepare a list of projects to be funded from the money appropriated in this section
144.23with necessary supporting information including descriptions of the projects, plans, and
144.24cost estimates. A project must not be approved by the board unless it finds that:
144.25(1) the project will materially assist, directly or indirectly, the creation of additional
144.26long-term employment opportunities;
144.27(2) the prospective benefits of the expenditure exceed the anticipated costs; and
144.28(3) in the case of assistance to private enterprise, the project will serve a sound
144.29business purpose.
144.30 Each project must be approved by a majority of the at least seven Iron Range
144.31Resources and Rehabilitation Board members and the commissioner of Iron Range
144.32resources and rehabilitation. The list of projects must be submitted to the governor,
144.33who shall, by November 15 of each year, approve, disapprove, or return for further
144.34consideration, each project. The money for a project may be spent only upon approval of
145.1the project by the governor. The board may submit supplemental projects for approval at
145.2any time.
145.3EFFECTIVE DATE.This section is effective the day following final enactment.

145.4    Sec. 14. Minnesota Statutes 2008, section 298.2214, is amended by adding a
145.5subdivision to read:
145.6    Subd. 6. Per diem. Members of the committee may be reimbursed for expenses
145.7in the manner provided in section 298.22, subdivision 2.
145.8EFFECTIVE DATE.This section is effective the day following final enactment.

145.9    Sec. 15. Minnesota Statutes 2008, section 298.223, is amended to read:
145.10298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.
145.11    Subdivision 1. Creation; purposes. A fund called the taconite environmental
145.12protection fund is created for the purpose of reclaiming, restoring and enhancing those
145.13areas of northeast Minnesota located within the taconite assistance area defined in section
145.14273.1341 , that are adversely affected by the environmentally damaging operations
145.15involved in mining taconite and iron ore and producing iron ore concentrate and for the
145.16purpose of promoting the economic development of northeast Minnesota. The taconite
145.17environmental protection fund shall be used for the following purposes:
145.18(a) (1) to initiate investigations into matters the Iron Range Resources and
145.19Rehabilitation Board determines are in need of study and which will determine the
145.20environmental problems requiring remedial action;
145.21(b) (2) reclamation, restoration, or reforestation of mine lands not otherwise
145.22provided for by state law;
145.23(c) (3) local economic development projects but only if those projects are approved
145.24by the board, at least seven Iron Range Resources and Rehabilitation Board members,
145.25and public works, including construction of sewer and water systems located within the
145.26taconite assistance area defined in section 273.1341;
145.27(d) (4) monitoring of mineral industry related health problems among mining
145.28employees.;
145.29(5) local public works projects under section 298.227, paragraph (c); and
145.30(6) local public works projects as provided under this clause. The following amounts
145.31shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
145.32(i) .4651 cents per ton to the city of Aurora for street repair and renovation;
146.1(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
146.2improvements to the south side industrial site;
146.3(iii) .6460 cent per ton to the city of Buhl for street repair;
146.4(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
146.5(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
146.6upgrades;
146.7(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
146.8upgrades;
146.9(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer
146.10infrastructure;
146.11(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
146.12modifications for the miners' memorial;
146.13(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
146.14(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
146.15(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
146.16(xii) .6460 cent per ton to the town of Balkan for community center repairs;
146.17(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
146.18(xiv) .5168 cent per ton to the city of Cook for replacement of a water tower;
146.19(xv) .5168 cent per ton to the city of Ely for reconstruction of 2cnd Avenue West;
146.20(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
146.21(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
146.22(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
146.23(xvix) .3230 cent per ton to Lake County for trail construction;
146.24(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
146.25Marais;
146.26(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
146.27improvements;
146.28(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
146.29(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
146.30improvements along Gayley Avenue;
146.31(xxiv) .3876 cent per ton to the city of Marble for construction of a city
146.32administration facility;
146.33(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
146.34community center;
146.35(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
146.36upgrades;
147.1(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
147.2along Depot Street;
147.3(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
147.4improvements;
147.5(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
147.6infrastructure upgrades at Pokegema Golf Course and Park Place;
147.7(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
147.8for 1st Avenue from River Road to 3rd Street SE; and
147.9(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
147.10at Highway 2 and County Road 62.
147.11    Subd. 2. Administration. (a) The taconite area environmental protection fund shall
147.12be administered by the commissioner of the Iron Range Resources and Rehabilitation
147.13Board. The commissioner shall by September 1 of each year submit to the board a list
147.14of projects to be funded from the taconite area environmental protection fund, with such
147.15supporting information including description of the projects, plans, and cost estimates as
147.16may be necessary.
147.17    (b) Each year no less than one-half of the amounts deposited into the taconite
147.18environmental protection fund must be used for public works projects, including
147.19construction of sewer and water systems, as specified under subdivision 1, paragraph (c)
147.20clause (3). The Iron Range Resources and Rehabilitation Board with a majority vote of
147.21the members, approval by at least seven Iron Range Resources and Rehabilitation Board
147.22members, may waive the requirements of this paragraph.
147.23    (c) Upon approval by a majority of the members of the Iron Range Resources and
147.24Rehabilitation Board, at least seven Iron Range Resources and Rehabilitation Board
147.25members, the list of projects approved under this subdivision shall be submitted to the
147.26governor by November 1 of each year. By December 1 of each year, the governor shall
147.27approve or disapprove, or return for further consideration, each project. Funds for a project
147.28may be expended only upon approval of the project by the board at least seven Iron Range
147.29Resources and Rehabilitation Board members, and the governor. The commissioner may
147.30submit supplemental projects to the board and governor for approval at any time.
147.31    Subd. 3. Appropriation. There is annually appropriated to the commissioner of Iron
147.32Range resources and rehabilitation taconite area environmental protection funds necessary
147.33to carry out approved projects and programs and the funds necessary for administration of
147.34this section. Annual administrative costs, not including detailed engineering expenses for
147.35the projects, shall not exceed five percent of the amount annually expended from the fund.
148.1Funds for the purposes of this section are provided by section 298.28, subdivision
148.211
, relating to the taconite area environmental protection fund.
148.3EFFECTIVE DATE.This section is effective the day following final enactment.

148.4    Sec. 16. Minnesota Statutes 2008, section 298.227, is amended to read:
148.5298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
148.6    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
148.7production and qualifying sales under section 298.28, subdivision 9a, shall be held by
148.8the Iron Range Resources and Rehabilitation Board in a separate taconite economic
148.9development fund for each taconite and direct reduced ore producer. Money from the
148.10fund for each producer shall be released by the commissioner after review by a joint
148.11committee consisting of an equal number of representatives of the salaried employees and
148.12the nonsalaried production and maintenance employees of that producer. The District 11
148.13director of the United States Steelworkers of America, on advice of each local employee
148.14president, shall select the employee members. In nonorganized operations, the employee
148.15committee shall be elected by the nonsalaried production and maintenance employees.
148.16The review must be completed no later than six months after the producer presents a
148.17proposal for expenditure of the funds to the committee. The funds held pursuant to this
148.18section may be released only for workforce development and associated public facility
148.19improvement, or for acquisition of plant and stationary mining equipment and facilities
148.20for the producer or for research and development in Minnesota on new mining, or
148.21taconite, iron, or steel production technology, but only if the producer provides a matching
148.22expenditure to be used for the same purpose of at least 50 percent of the distribution based
148.23on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals for
148.24expenditures of money from the fund beginning May 26, 2007, the commissioner may
148.25not release the funds before the next scheduled meeting of the board. If the board rejects
148.26a proposed expenditure is not approved by at least seven Iron Range Resources and
148.27Rehabilitation Board members, the funds must be deposited in the Taconite Environmental
148.28Protection Fund under sections 298.222 to 298.225. If a producer uses money which has
148.29been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
148.30equipment, or mining shovels, and the producer removes the piece of equipment from the
148.31taconite tax relief area defined in section 273.134 within ten years from the date of receipt
148.32of the money from the fund, a portion of the money granted from the fund must be repaid
148.33to the taconite economic development fund. The portion of the money to be repaid is 100
148.34percent of the grant if the equipment is removed from the taconite tax relief area within 12
149.1months after receipt of the money from the fund, declining by ten percent for each of the
149.2subsequent nine years during which the equipment remains within the taconite tax relief
149.3area. If a taconite production facility is sold after operations at the facility had ceased, any
149.4money remaining in the fund for the former producer may be released to the purchaser of
149.5the facility on the terms otherwise applicable to the former producer under this section. If
149.6a producer fails to provide matching funds for a proposed expenditure within six months
149.7after the commissioner approves release of the funds, the funds are available for release to
149.8another producer in proportion to the distribution provided and under the conditions of
149.9this section. Any portion of the fund which is not released by the commissioner within
149.10one year of its deposit in the fund shall be divided between the taconite environmental
149.11protection fund created in section 298.223 and the Douglas J. Johnson economic protection
149.12trust fund created in section 298.292 for placement in their respective special accounts.
149.13Two-thirds of the unreleased funds shall be distributed to the taconite environmental
149.14protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
149.15    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
149.16distributions and the review process, an amount equal to ten cents per taxable ton of
149.17production in 2007, for distribution in 2008 only, that would otherwise be distributed
149.18under paragraph (a), may be used for a loan for the cost of construction of a biomass
149.19energy facility. This amount must be deducted from the distribution under paragraph (a)
149.20for which a matching expenditure by the producer is not required. The granting of the loan
149.21is subject to approval by the Iron Range Resources and Rehabilitation Board at least seven
149.22Iron Range Resources and Rehabilitation Board members; interest must be payable on the
149.23loan at the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan
149.24and interest must be deposited in the northeast Minnesota economic development taconite
149.25environment protection fund established in section 298.2213 under sections 298.222 to
149.26298.225. If a loan is not made under this paragraph by July 1, 2009, the amount that
149.27had been made available for the loan under this paragraph must be transferred to the
149.28northeast Minnesota economic development taconite environment protection fund under
149.29sections 298.222 to 298.225. (iii) Money distributed in 2008 to the fund established
149.30under this section that exceeds ten cents per ton is available to qualifying producers under
149.31paragraph (a) on a pro rata basis.
149.32    If 2008 H.F. No. 1812 is enacted and includes a provision that amends this section
149.33in a manner that is different from the amendment in this section, the amendment in this
149.34section supersedes the amendment in 2008 H.F. No. 1812, notwithstanding section 645.26.
149.35(c) Repayment or transfer of money to the taconite environmental protection fund
149.36under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
150.1Rehabilitation Board for public works projects in house legislative districts in the same
150.2proportion as taxable tonnage of production in 2007 in each house legislative district, for
150.3distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
150.4in 2008. Not withstanding any other law to the contrary, expenditures under this paragraph
150.5do not require approval by the governor. For purposes of this paragraph, "house legislative
150.6districts" means the legislative districts in existence on the effective date of this section.
150.7EFFECTIVE DATE.This section is effective the day following final enactment.

150.8    Sec. 17. Minnesota Statutes 2008, section 298.28, subdivision 9d, is amended to read:
150.9    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
150.10be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
150.11an Iron Range higher education account that is hereby created, to be used for higher
150.12education programs conducted at educational institutions in the taconite assistance area
150.13defined in section 273.1341. The Iron Range Higher Education committee under section
150.14298.2214, and the Iron Range Resources and Rehabilitation Board by an affirmative vote
150.15of at least seven Iron Range Resources and Rehabilitation Board members, must approve
150.16all expenditures from the account.
150.17EFFECTIVE DATE.This section is effective the day following final enactment.

150.18    Sec. 18. Minnesota Statutes 2008, section 298.292, subdivision 2, is amended to read:
150.19    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
150.20fund may be used for the following purposes:
150.21    (1) to provide loans, loan guarantees, interest buy-downs and other forms of
150.22participation with private sources of financing, but a loan to a private enterprise shall be
150.23for a principal amount not to exceed one-half of the cost of the project for which financing
150.24is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
150.25lesser of eight percent or an interest rate three percentage points less than a full faith
150.26and credit obligation of the United States government of comparable maturity, at the
150.27time that the loan is approved;
150.28    (2) to fund reserve accounts established to secure the payment when due of the
150.29principal of and interest on bonds issued pursuant to section 298.2211;
150.30    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
150.31on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
150.32or retrofitting heating facilities in connection with district heating systems or systems
150.33utilizing alternative energy sources;
151.1    (4) to invest in a venture capital fund or enterprise that will provide capital to other
151.2entities that are engaging in, or that will engage in, projects or programs that have the
151.3purposes set forth in subdivision 1. No investments may be made in a venture capital fund
151.4or enterprise unless at least two other unrelated investors make investments of at least
151.5$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
151.6J. Johnson economic protection trust fund may not exceed the amount of the largest
151.7investment by an unrelated investor in the venture capital fund or enterprise. For purposes
151.8of this subdivision, an "unrelated investor" is a person or entity that is not related to
151.9the entity in which the investment is made or to any individual who owns more than 40
151.10percent of the value of the entity, in any of the following relationships: spouse, parent,
151.11child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
151.12the value of all interests in it. For purposes of determining the limitations under this
151.13clause, the amount of investments made by an investor other than the Douglas J. Johnson
151.14economic protection trust fund is the sum of all investments made in the venture capital
151.15fund or enterprise during the period beginning one year before the date of the investment
151.16by the Douglas J. Johnson economic protection trust fund; and
151.17    (5) to purchase forest land in the taconite assistance area defined in section 273.1341
151.18to be held and managed as a public trust for the benefit of the area for the purposes
151.19authorized in section 298.22, subdivision 5a. Property purchased under this section may
151.20be sold by the commissioner upon approval by a majority vote of the board by at least
151.21seven Iron Range Resources and Rehabilitation Board members. The net proceeds must
151.22be deposited in the trust fund for the purposes and uses of this section.
151.23    Money from the trust fund shall be expended only in or for the benefit of the taconite
151.24assistance area defined in section 273.1341.
151.25EFFECTIVE DATE.This section is effective the day following final enactment.

151.26    Sec. 19. [298.2931] TRANSFER OF FUNDS.
151.27The amount deposited in the Douglas J. Johnson Economic Protection Trust Fund
151.28in 2009 in repayment of a loan for the Mesabi Nugget, LLC project at Silver Bay shall
151.29be transferred to the taconite environmental protection fund and deposited in a special
151.30account to be used as provided under section 298.223, subdivision 1, clause (6).
151.31EFFECTIVE DATE.This section is effective the day following final enactment.

151.32    Sec. 20. Minnesota Statutes 2008, section 298.294, is amended to read:
151.33298.294 INVESTMENT OF FUND.
152.1(a) The trust fund established by section 298.292 shall be invested pursuant to law
152.2by the State Board of Investment and the net interest, dividends, and other earnings arising
152.3from the investments shall be transferred, except as provided in paragraph (b), on the first
152.4day of each month to the trust and shall be included and become part of the trust fund.
152.5The amounts transferred, including the interest, dividends, and other earnings earned
152.6prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
152.71983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
152.8commissioner of Iron Range resources and rehabilitation for deposit in a separate account
152.9for expenditure for the purposes set forth in section 298.292. Amounts appropriated
152.10pursuant to this section shall not cancel but shall remain available unless expended.
152.11(b) For fiscal years 2010 and 2011 only, $1,000,000 of the net interest, dividends,
152.12and other earnings under paragraph (a) shall be transferred to a special account. Funds in
152.13the special account are available for loans or grants to businesses, with priority given to
152.14businesses with 25 or fewer employees. Funds may be used for wage subsidies of up to $5
152.15per hour or other activities that will create additional jobs in the taconite assistance area
152.16under section 273.1341. Expenditures from the special account must be approved by at
152.17least seven Iron Range Resources and Rehabilitation Board members.
152.18(c) To qualify for a grant or loan, a business must be currently operating and have
152.19been operating for one year immediately prior to its application for a loan or grant, and its
152.20corporate headquarters must be located in the taconite assistance area.
152.21EFFECTIVE DATE.This section is effective the day following final enactment.

152.22    Sec. 21. Minnesota Statutes 2008, section 298.296, subdivision 2, is amended to read:
152.23    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
152.24on projects and for administration of the trust fund only from the net interest, earnings,
152.25and dividends arising from the investment of the trust at any time, including net interest,
152.26earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
152.27available for use in fiscal year 1983, except that any amount required to be paid out of the
152.28trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
152.29X, section 4, and to make school bond payments and payments to recipients of taconite
152.30production tax proceeds pursuant to section 298.225, may be taken from the corpus of
152.31the trust.
152.32    (b) Additionally, upon recommendation by the board, up to $13,000,000 from the
152.33corpus of the trust may be made available for use as provided in subdivision 4, and up to
152.34$10,000,000 from the corpus of the trust may be made available for use as provided in
152.35section 298.2961.
153.1    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
153.2on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
153.3made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
153.48, section 17, may be expended on projects. Funds may be expended for projects under
153.5this paragraph only if the project:
153.6    (1) is for the purposes established under section 298.292, subdivision 1, clause
153.7(1) or (2); and
153.8    (2) is approved by the board upon an affirmative vote of at least ten of its members.
153.9No money made available under this paragraph or paragraph (d) can be used for
153.10administrative or operating expenses of the Iron Range Resources and Rehabilitation
153.11Board or expenses relating to any facilities owned or operated by the board on May 18,
153.122002.
153.13    (d) Upon recommendation by a unanimous vote of all members of the board,
153.14amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
153.15expended on projects described in section 298.292, subdivision 1.
153.16    (e) Annual administrative costs, not including detailed engineering expenses for the
153.17projects, shall not exceed five percent of the net interest, dividends, and earnings arising
153.18from the trust in the preceding fiscal year.
153.19    (f) Principal and interest received in repayment of loans made pursuant to this
153.20section, and earnings on other investments made under section 298.292, subdivision 2,
153.21clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
153.22are appropriated to the board for the purposes of sections 298.291 to 298.298.
153.23    (g) Additionally, notwithstanding section 298.293, upon the affirmative vote
153.24of a majority of the members of the board, of at least seven Iron Range Resources and
153.25Rehabilitation Board members, money from the corpus of the trust may be expanded to
153.26purchase forest lands within the taconite assistance area as provided in sections 298.22,
153.27subdivision 5a, and 298.292, subdivision 2, clause (5).
153.28EFFECTIVE DATE.This section is effective the day following final enactment.

153.29    Sec. 22. Minnesota Statutes 2008, section 298.2961, is amended to read:
153.30298.2961 PRODUCER GRANTS.
153.31    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the Douglas
153.32J. Johnson economic protection trust fund to a special account in the taconite area
153.33environmental protection fund for grants to producers on a project-by-project basis as
153.34provided in this section.
154.1(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
154.2appropriated for grants to producers on a project-by-project basis as provided in this
154.3section.
154.4    Subd. 2. Projects; approval. (a) Projects funded must be for:
154.5    (1) environmentally unique reclamation projects; or
154.6    (2) pit or plant repairs, expansions, or modernizations other than for a value added
154.7iron products plant.
154.8    (b) To be proposed by the board, a project must be approved by at least eight Iron
154.9Range Resources and Rehabilitation Board members. The money for a project may
154.10be spent only upon approval of the project by the governor. The board may submit
154.11supplemental projects for approval at any time.
154.12    (c) The board may require that it receive an equity percentage in any project to
154.13which it contributes under this section.
154.14    Subd. 3. Redistribution. (a) If a taconite production facility is sold after operations
154.15at the facility had ceased, any money remaining in the taconite environmental fund for the
154.16former producer may be released to the purchaser of the facility on the terms otherwise
154.17applicable to the former producer under this section.
154.18(b) Any portion of the taconite environmental fund that is not released by the
154.19commissioner within three years of its deposit in the taconite environmental fund shall be
154.20divided between the taconite environmental protection fund created in section 298.223
154.21and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
154.22placement in their respective special accounts. Two-thirds of the unreleased funds must be
154.23distributed to the taconite environmental protection fund and one-third to the Douglas J.
154.24Johnson economic protection trust fund.
154.25    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
154.26under section 298.28, subdivision 9b, and to make grants or loans as provided in this
154.27subdivision. Any grant or loan made under this subdivision must be approved by a majority
154.28of the members of the Iron Range Resources and Rehabilitation Board, at least seven Iron
154.29Range Resources and Rehabilitation Board members, established under section 298.22.
154.30    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
154.31for improvements and repairs to the city's steam heating system.
154.32    (c) Distributions received in calendar year 2006 are allocated to a project of the
154.33public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
154.34generating plants to the use of biomass products, such as wood.
154.35    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
154.36be used for the East Two Rivers project in or near the city of Tower.
155.1    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
155.2must be paid to St. Louis County for deposit in its county road and bridge fund to be
155.3used for relocation of St. Louis County Road 715, commonly referred to as Pike River
155.4Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
155.5grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
155.6maintenance garage on Highway 135, further extending the lines to interconnect with the
155.7city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
155.8years are allocated for projects under section 298.223, subdivision 1.
155.9    Subd. 5. Public works and local economic development fund. For distributions in
155.102007 only, a special fund is established to receive 38.4 cents per ton that otherwise would
155.11be allocated under section 298.28, subdivision 6. The following amounts are allocated to
155.12St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
155.13    (1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for
155.14construction of a combined wastewater facility and notwithstanding section 298.28,
155.15subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
155.16by St. Louis County shall also be distributed to the recipient;
155.17    (2) six cents per ton to the city of Eveleth to redesign and design and construct
155.18improvements to renovate its water treatment facility;
155.19    (3) one cent per ton for the East Range Joint Powers Board to acquire land for and to
155.20design a central wastewater collection and treatment system;
155.21    (4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
155.22    (5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
155.23    (6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
155.24    (7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and
155.25Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment
155.26and Economic Development;
155.27    (8) 0.4 cents per ton to the city of Keewatin for a new city well;
155.28    (9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
155.29materials center;
155.30    (10) 0.9 cents per ton to Aitkin County Growth for an economic development
155.31project for peat harvesting;
155.32    (11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
155.33    (12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive
155.34plan;
155.35    (13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
156.1    (14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake
156.2Environmental Learning Center;
156.3    (15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
156.4    (16) 0.5 cents per ton to the Economic Development Authority of the city of Grand
156.5Rapids for planning for the North Central Research and Technology Laboratory;
156.6    (17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
156.7    (18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
156.8    (19) ten cents per ton to the commissioner of Iron Range Resources and
156.9Rehabilitation for deposit in a Highway 1 Corridor Account established by the
156.10commissioner, to be distributed by the commissioner to any of the cities of Babbitt, Cook,
156.11Ely, or Tower, for economic development projects approved by the Iron Range Resources
156.12and Rehabilitation Board at least seven Iron Range Resources and Rehabilitation Board
156.13members; notwithstanding section 298.28, subdivision 11, paragraph (a), or any other law,
156.14interest accrued on this money while held by St. Louis County or the commissioner
156.15shall also be distributed to the recipient.
156.16    Subd. 6. Renewable energy. For distributions in 2009 only, a special account is
156.17established in the taconite environmental protection fund to receive 15.5 cents per ton that
156.18otherwise would be allocated under section 298.28, subdivision 6. The funds are available
156.19for cooperative projects between the Iron Range Resources and Rehabilitation Board and
156.20local governments for renewable energy initiatives.
156.21EFFECTIVE DATE.This section is effective the day following final enactment.

156.22ARTICLE 9
156.23HOUSING FINANCE AGENCY

156.24    Section 1. Minnesota Statutes 2008, section 327C.03, is amended by adding a
156.25subdivision to read:
156.26    Subd. 6. Payment to the Minnesota manufactured home relocation trust fund.
156.27In the event a park owner has been assessed under section 327C.095, subdivision 12,
156.28paragraph (c), the park owner may collect the $12 annual payment required by section
156.29327C.095, subdivision 12, for participation in the relocation trust fund, as a lump sum
156.30or, along with monthly lot rent, a fee of no more than $1 per month to cover the cost of
156.31participating in the relocation trust fund. The $1 fee must be separately itemized and
156.32clearly labeled "Minnesota manufactured home relocation trust fund."

156.33    Sec. 2. Minnesota Statutes 2008, section 327C.095, subdivision 12, is amended to read:
157.1    Subd. 12. Payment to the Minnesota manufactured home relocation trust fund.
157.2    (a) If a manufactured home owner is required to move due to the conversion of all or a
157.3portion of a manufactured home park to another use, the closure of a park, or cessation
157.4of use of the land as a manufactured home park, the manufactured park owner shall,
157.5upon the change in use, pay to the commissioner of finance for deposit in the Minnesota
157.6manufactured home relocation trust fund under section 462A.35, the lesser amount of the
157.7actual costs of moving or purchasing the manufactured home approved by the neutral
157.8third party and paid by the Minnesota Housing Finance Agency under subdivision 13,
157.9paragraph (a) or (e), or $3,250 for each single section manufactured home, and $6,000 for
157.10each multisection manufactured home, for which a manufactured home owner has made
157.11application for payment of relocation costs under subdivision 13, paragraph (c). The
157.12manufactured home park owner shall make payments required under this section to the
157.13Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
157.14from the neutral third party.
157.15    (b) A manufactured home park owner is not required to make the payment prescribed
157.16under paragraph (a), nor is a manufactured home owner entitled to compensation under
157.17subdivision 13, paragraph (a) or (e), if:
157.18    (1) the manufactured home park owner relocates the manufactured home owner to
157.19another space in the manufactured home park or to another manufactured home park at
157.20the park owner's expense;
157.21    (2) the manufactured home owner is vacating the premises and has informed the
157.22manufactured home park owner or manager of this prior to the mailing date of the closure
157.23statement under subdivision 1;
157.24    (3) a manufactured home owner has abandoned the manufactured home, or the
157.25manufactured home owner is not current on the monthly lot rental, personal property
157.26taxes, or has failed to pay the annual $12 payments to the Minnesota manufactured home
157.27relocation trust fund when due;
157.28    (4) the manufactured home owner has a pending eviction action for nonpayment of
157.29lot rental amount under section 327C.09, which was filed against the manufactured home
157.30owner prior to the mailing date of the closure statement under subdivision 1, and the writ
157.31of recovery has been ordered by the district court;
157.32    (5) the conversion of all or a portion of a manufactured home park to another use,
157.33the closure of a park, or cessation of use of the land as a manufactured home park is the
157.34result of a taking or exercise of the power of eminent domain by a governmental entity
157.35or public utility; or
158.1    (6) the owner of the manufactured home is not a resident of the manufactured home
158.2park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
158.3is a resident, but came to reside in the manufactured home park after the mailing date of
158.4the closure statement under subdivision 1.
158.5    (c) Owners of manufactured homes who rent lots in a manufactured home park shall
158.6make annual payments to the park owner, to be deposited in the Minnesota manufactured
158.7home relocation trust fund under section 462A.35, in the amount of $12 per year, per
158.8manufactured home, payable on August 15 of each year. On or before July 15 of each
158.9year, the commissioner of finance shall prepare and post on the department's Web site a
158.10generic invoice and cover letter explaining the purpose of the Minnesota manufactured
158.11home relocation trust fund, the obligation of each manufactured home owner to make an
158.12annual $12 payment into the fund, the due date, and the need to pay to the park owner for
158.13collection, and a warning, in 14-point font, that if the annual payments are not made when
158.14due, the manufactured home owner will not be eligible for compensation from the fund if
158.15the manufactured home park closes. The park owner shall receive, record, and commingle
158.16the payments and forward the payments to the commissioner of finance by September 15
158.17of each year, with a summary by the park owner, certifying the name, address, and payment
158.18amount of each remitter, and noting the names and address of manufactured home owners
158.19who did not pay the $12 annual payment, sent to both the commissioner of finance and the
158.20commissioner of the Minnesota Housing Finance Agency. The commissioner of finance
158.21shall deposit the payments in the Minnesota manufactured home relocation trust fund.
158.22The commissioner of finance shall annually assess each manufactured home park owner
158.23by mail the total amount of $12 for each licensed lot in their park, payable on or before
158.24September 15 of each year. The commissioner of finance shall deposit the payments in the
158.25Minnesota manufactured home relocation trust fund. On or before July 15 of each year,
158.26the commissioner of finance shall prepare and distribute to park owners a letter explaining
158.27the collection, an invoice for all licensed lots, and a sample form for the park owners to
158.28collect information on which park residents have been accounted for. The park owner may
158.29recoup the cost of the $12 assessment as a lump sum or as a monthly fee of no more than
158.30$1 collected from park residents together with monthly lot rent as provided in section
158.31327C.03, subdivision 6. Park owners may adjust payment for lots in their park that are
158.32vacant or otherwise not eligible for contribution to the trust fund under section 327C.095,
158.33subdivision 12, paragraph (b), and deduct from the assessment, accordingly.
158.34    (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
158.35the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
159.1in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
159.2attorney fees, court costs, and disbursements.

159.3    Sec. 3. Minnesota Statutes 2008, section 462A.05, subdivision 14, is amended to read:
159.4    Subd. 14. Rehabilitation loans. It may agree to purchase, make, or otherwise
159.5participate in the making, and may enter into commitments for the purchase, making, or
159.6participation in the making, of eligible loans for rehabilitation, with terms and conditions
159.7as the agency deems advisable, to persons and families of low and moderate income, and
159.8to owners of existing residential housing for occupancy by such persons and families,
159.9for the rehabilitation of existing residential housing owned by them. The loans may be
159.10insured or uninsured and may be made with security, or may be unsecured, as the agency
159.11deems advisable. The loans may be in addition to or in combination with long-term
159.12eligible mortgage loans under subdivision 3. They may be made in amounts sufficient
159.13to refinance existing indebtedness secured by the property, if refinancing is determined
159.14by the agency to be necessary to permit the owner to meet the owner's housing cost
159.15without expending an unreasonable portion of the owner's income thereon. No loan for
159.16rehabilitation shall be made unless the agency determines that the loan will be used
159.17primarily to make the housing more desirable to live in, to increase the market value of the
159.18housing, for compliance with state, county or municipal building, housing maintenance,
159.19fire, health or similar codes and standards applicable to housing, or to accomplish energy
159.20conservation related improvements. In unincorporated areas and municipalities not
159.21having codes and standards, the agency may, solely for the purpose of administering
159.22the provisions of this chapter, establish codes and standards. Except for accessibility
159.23improvements under this subdivision and subdivisions 14a and 24, clause (1), no secured
159.24loan for rehabilitation of any owner-occupied property shall be made in an amount which,
159.25with all other existing indebtedness secured by the property, would exceed 110 percent
159.26of its market value, as determined by the agency. No loan under this subdivision for the
159.27rehabilitation of owner-occupied housing shall be denied solely because the loan will not
159.28be used for placing the owner-occupied residential housing in full compliance with all
159.29state, county, or municipal building, housing maintenance, fire, health, or similar codes
159.30and standards applicable to housing. Rehabilitation loans shall be made only when the
159.31agency determines that financing is not otherwise available, in whole or in part, from
159.32private lenders upon equivalent terms and conditions. Accessibility rehabilitation loans
159.33authorized under this subdivision may be made to eligible persons and families without
159.34limitations relating to the maximum incomes of the borrowers if:
160.1(1) the borrower or a member of the borrower's family requires a level of care
160.2provided in a hospital, skilled nursing facility, or intermediate care facility for persons
160.3with developmental disabilities;
160.4(2) home care is appropriate; and
160.5(3) the improvement will enable the borrower or a member of the borrower's family
160.6to reside in the housing.
160.7The agency may waive any requirement that the housing units in a residential housing
160.8development be rented to persons of low and moderate income if the development consists
160.9of four or less dwelling units, one of which is occupied by the owner.

160.10    Sec. 4. Minnesota Statutes 2008, section 462A.05, subdivision 14a, is amended to read:
160.11    Subd. 14a. Rehabilitation loans; existing owner occupied residential housing.
160.12It may make loans to persons and families of low and moderate income to rehabilitate
160.13or to assist in rehabilitating existing residential housing owned and occupied by those
160.14persons or families. No loan shall be made unless the agency determines that the loan
160.15will be used primarily for rehabilitation work necessary for health or safety, essential
160.16accessibility improvements, or to improve the energy efficiency of the dwelling. No
160.17loan for rehabilitation of owner occupied residential housing shall be denied solely
160.18because the loan will not be used for placing the residential housing in full compliance
160.19with all state, county or municipal building, housing maintenance, fire, health or similar
160.20codes and standards applicable to housing. The amount of any loan shall not exceed the
160.21lesser of (a) a maximum loan amount determined under rules adopted by the agency
160.22not to exceed $20,000 $27,000, or (b) the actual cost of the work performed, or (c) that
160.23portion of the cost of rehabilitation which the agency determines cannot otherwise be
160.24paid by the person or family without the expenditure of an unreasonable portion of the
160.25income of the person or family. Loans made in whole or in part with federal funds may
160.26exceed the maximum loan amount to the extent necessary to comply with federal lead
160.27abatement requirements prescribed by the funding source. In making loans, the agency
160.28shall determine the circumstances under which and the terms and conditions under which
160.29all or any portion of the loan will be repaid and shall determine the appropriate security
160.30for the repayment of the loan. Loans pursuant to this subdivision may be made with
160.31or without interest or periodic payments.

160.32    Sec. 5. Minnesota Statutes 2008, section 469.201, subdivision 2, is amended to read:
160.33    Subd. 2. City. "City" means a city of the first class as defined in section 410.01 and
160.34a city of the second class that is designated as an economically depressed area by the
161.1United States Department of Commerce any statutory or home rule charter city, town, or
161.2township. For each city, a port authority, housing and redevelopment authority, or other
161.3agency or instrumentality, the jurisdiction of which is the territory of the city, is included
161.4within the meaning of city.

161.5    Sec. 6. Minnesota Statutes 2008, section 469.201, subdivision 4, is amended to read:
161.6    Subd. 4. City matching money. (a) "City matching money" means the money of a
161.7city specified in a targeted revitalization program. The sources of city matching money
161.8may include:
161.9(1) money from the general fund or a special fund of a city used to implement a
161.10targeted revitalization program;
161.11(2) money paid or repaid to a city from the proceeds of a grant that a city has
161.12received from the federal government, a profit or nonprofit corporation, or another entity
161.13or individual, that is to be used to implement a targeted revitalization program;
161.14(3) tax increments received by a city under sections 469.174 to 469.179 or other law,
161.15if eligible, to be spent in the targeted neighborhood community;
161.16(4) the greater of the fair market value or the cost to the city of acquiring land,
161.17buildings, equipment, or other real or personal property that a city contributes, grants,
161.18leases, or loans to a profit or nonprofit corporation or other entity or individual, in
161.19connection with the implementation of a targeted revitalization program;
161.20(5) city money to be used to acquire, install, reinstall, repair, or improve the
161.21infrastructure facilities of a targeted neighborhood community;
161.22(6) money contributed by a city to pay issuance costs, fund bond reserves, or to
161.23otherwise provide financial support for revenue bonds or obligations issued by a city for a
161.24project or program related to the implementation of a targeted revitalization program;
161.25(7) money derived from fees received by a city in connection with its community
161.26development activities that are to be used in implementing a targeted revitalization
161.27program;
161.28(8) money derived from the apportionment to the city under section 162.14 or by
161.29special law, and expended in a targeted neighborhood community for an activity related to
161.30the targeted revitalization program;
161.31(9) administrative expenses of the city that are incurred in connection with the
161.32planning, implementation, or reporting requirements of sections 469.201 to 469.207.
161.33(b) City matching money does not include:
161.34(1) city money used to provide a service or to exercise a function that is ordinarily
161.35provided throughout the city, unless an increased level of the service or function is
162.1to be provided in a targeted neighborhood community in accordance with a targeted
162.2revitalization program;
162.3(2) the proceeds of bonds issued by the city under chapter 462C or 469 and payable
162.4solely from repayments made by one or more nongovernmental persons in consideration
162.5for the financing provided by the bonds; or
162.6(3) money given by the state to fund any part of the targeted revitalization program.

162.7    Sec. 7. Minnesota Statutes 2008, section 469.201, subdivision 6, is amended to read:
162.8    Subd. 6. Housing activities. "Housing activities" include any work or undertaking
162.9to provide housing and related services and amenities primarily for persons and families of
162.10low or moderate income. This work or undertaking may include the planning of buildings
162.11and improvements; the acquisition of real property, which may be needed immediately
162.12to address vacancies, foreclosures, and preservation of housing now or in the future for
162.13housing purposes and the; demolition of any existing improvements; activities to address
162.14lead abatement, energy efficiencies, or other activities related to the health of a building;
162.15and the construction, reconstruction, alteration, and repair of new and existing buildings.
162.16Housing activities also include the provision of a housing rehabilitation and energy
162.17improvement loan and grant program with respect to any residential property located
162.18within the targeted neighborhood community, the cost of relocation relating to acquiring
162.19property for housing activities, and programs authorized by chapter 462C.

162.20    Sec. 8. Minnesota Statutes 2008, section 469.201, subdivision 7, is amended to read:
162.21    Subd. 7. Lost unit. "Lost unit" means a rental housing unit that has been vacant
162.22for more than six months or has been condemned for code violations, that is lost as a
162.23result of revitalization activities because it is demolished, converted to an owner-occupied
162.24unit that is not a cooperative, or converted to a nonresidential use, or because the gross
162.25rent to be charged exceeds 125 percent of the gross rent charged for the unit six months
162.26before the start of rehabilitation.

162.27    Sec. 9. Minnesota Statutes 2008, section 469.201, subdivision 10, is amended to read:
162.28    Subd. 10. Targeted neighborhood community. "Targeted neighborhood
162.29community" means an area including one or more census tracts, as determined and
162.30measured by the Bureau of Census of the United States Department of Commerce, that
162.31a city council determines in a resolution adopted under section 469.202, subdivision 1,
162.32meets the criteria of section 469.202, subdivision 2, and any additional area designated
162.33under section 469.202, subdivision 3.

163.1    Sec. 10. Minnesota Statutes 2008, section 469.201, subdivision 11, is amended to read:
163.2    Subd. 11. Targeted neighborhood community money. "Targeted neighborhood
163.3community money" means the money designated in the targeted revitalization program to
163.4be used to implement the targeted revitalization program.

163.5    Sec. 11. Minnesota Statutes 2008, section 469.201, subdivision 12, is amended to read:
163.6    Subd. 12. Targeted neighborhood community revitalization and financing
163.7program. "Targeted neighborhood community revitalization and financing program,"
163.8"revitalization program," or "program" means the targeted neighborhood community
163.9revitalization and financing program adopted in accordance with section 469.203.

163.10    Sec. 12. Minnesota Statutes 2008, section 469.202, is amended to read:
163.11469.202 DESIGNATION OF TARGETED NEIGHBORHOODS
163.12COMMUNITIES.
163.13    Subdivision 1. City authority. A city may by resolution designate a targeted
163.14neighborhoods community within its borders after adopting detailed findings that the
163.15designated neighborhoods communities meet the eligibility requirements in subdivision 2
163.16or 3.
163.17    Subd. 2. Eligibility requirements for targeted neighborhoods communities. An
163.18area within a city is eligible for designation as a targeted neighborhood community if the
163.19area meets two three of the following three four criteria:
163.20(a) The area had an unemployment rate that was twice the unemployment rate for
163.21the Minneapolis and Saint Paul standard metropolitan statistical area as determined by
163.22the most recent federal decennial census.
163.23(b) The median household income in the area was no more than half 80 percent of
163.24 the median household income for the Minneapolis and Saint Paul standard metropolitan
163.25statistical area as determined by the most recent federal decennial census.
163.26(c) The area is characterized by residential dwelling units in need of substantial
163.27rehabilitation. An area qualifies under this paragraph if 25 percent or more of the
163.28residential dwelling units are in substandard condition as determined by the city, or if 70
163.29percent or more of the residential dwelling units in the area were built before 1940 1960 as
163.30determined by the most recent federal decennial census.
163.31(d) The area is characterized by having a disproportionate number of vacant
163.32residential buildings and mortgage foreclosures. An area qualifies under this paragraph
163.33if it has either:
163.34(1) a foreclosure rate of at least 1.5 percent in 2008; or
164.1(2) a foreclosure rate in 2008 in the city or in a zip code area of the city that is at
164.2least 50 percent higher than the average foreclosure rate in the metropolitan area, as
164.3defined in section 473.121, subdivision 2. For purposes of this paragraph, "foreclosure
164.4rate" means the number of foreclosures, as indicated by sheriff sales records, divided by
164.5the number of households in the city in 2007.
164.6    Subd. 3. Additional area eligible for inclusion in targeted neighborhood
164.7community. (a) A city may add to the area designated as a targeted neighborhood
164.8community under subdivision 2 additional area extending up to four contiguous city
164.9blocks in all directions from the designated targeted neighborhood community. For the
164.10purpose of this subdivision, "city block" has the meaning determined by the city; or
164.11(b) The city may enlarge the targeted neighborhood community to include portions
164.12of a census tract that is contiguous to a targeted neighborhood community, provided that
164.13the city council first determines the additional area satisfies two three of the three four
164.14criteria in subdivision 2.

164.15    Sec. 13. Minnesota Statutes 2008, section 469.203, subdivision 1, is amended to read:
164.16    Subdivision 1. Requirements. For each targeted neighborhood community for
164.17which a city requests state financial assistance under section 469.204, the city must
164.18prepare a comprehensive revitalization and financing program that includes the following:
164.19(1) the revitalization objectives of the city for the targeted neighborhood community;
164.20(2) the specific activities or means by which the city intends to pursue and implement
164.21the revitalization objectives;
164.22(3) the extent to which the activities identified in clause (2) will benefit low-
164.23and moderate-income families, will alleviate the blighted condition of the targeted
164.24neighborhood community, or will otherwise assist in the revitalization of the targeted
164.25neighborhood community;
164.26(4) a statement of the intended outcomes to be achieved by implementation of the
164.27targeted revitalization program, how the outcomes will be measured both qualitatively and
164.28quantitatively, and the estimated time over which they will occur; and
164.29(5) a financing program and budget that identifies the financial resources necessary
164.30to implement the targeted revitalization program, including:
164.31(i) the estimated total cost to implement the targeted revitalization program;
164.32(ii) the estimated cost to implement each activity in the revitalization program
164.33identified in clause (2);
164.34(iii) the estimated amount of financial resources that will be available from all
164.35sources other than from the appropriation available under section 469.204 to implement
165.1the revitalization program, including the amount of private investment expected to result
165.2from the use of public money in the targeted neighborhood community;
165.3(iv) the estimated amount of the appropriation available under section 469.204 that
165.4will be necessary to implement the targeted revitalization program;
165.5(v) a description of the activities identified in the targeted revitalization program for
165.6which the state appropriation will be committed or spent; and
165.7(vi) a statement of how the city intends to meet the requirement for a financial
165.8contribution from city matching money in accordance with section 469.204, subdivision 3.

165.9    Sec. 14. Minnesota Statutes 2008, section 469.203, subdivision 2, is amended to read:
165.10    Subd. 2. Targeted neighborhood community participation in preparing
165.11revitalization program. A city requesting state financial assistance under section
165.12469.204 shall adopt follow a process to involve the residents of targeted neighborhoods
165.13communities in the development, drafting, and implementation of the targeted
165.14revitalization program. The process shall include the use of a citizen participation
165.15process established by the city. A description of the process must be included in the
165.16program. The process to involve residents of the targeted neighborhood community
165.17must include at least one public hearing. The city of Minneapolis shall establish the
165.18community-based process as outlined in subdivision 3. The city of St. Paul shall use
165.19the same community-based process the city used in planning, developing, drafting, and
165.20implementing the revitalization program required under Laws 1987, chapter 386, article 6,
165.21section 6. The city of Duluth shall use the same citizen participation process the city used
165.22in planning, developing, and implementing the federal funded community development
165.23program meeting in the targeted community.

165.24    Sec. 15. Minnesota Statutes 2008, section 469.203, subdivision 4, is amended to read:
165.25    Subd. 4. City approval of program. (a) Before or after adoption of a revitalization
165.26program under paragraph (b), the city must submit a preliminary program to the
165.27commissioner and the Minnesota Housing Finance Agency for their comments. The city
165.28may not adopt the revitalization program until comments have been received from the
165.29state agencies or 30 days have elapsed without response after the program was sent to
165.30them. Comments received by the city from the state agencies within the 30-day period 30
165.31days after submission of the preliminary program must be responded to in writing by the
165.32city before adoption of the program by the city.
165.33(b) The city may adopt a targeted revitalization program only after holding a public
165.34hearing after the program has been prepared. Notice of the hearing must be provided in a
166.1newspaper of general circulation in the city and in the most widely circulated community
166.2newspaper in the targeted neighborhoods not less than ten days nor more than 30 days
166.3before the date of the hearing subject to any local public notification requirements
166.4and consistent with citizen participation process established for identifying targeted
166.5communities.
166.6(c) A certification by the city that a targeted revitalization program has been
166.7approved by the city council for the targeted neighborhood community must be provided
166.8to the commissioner together with a copy of the program. A copy of the program must
166.9also be provided to the Minnesota Housing Finance Agency and the commissioner of
166.10employment and economic development.
166.11(d) A targeted revitalization program for the city may be modified at any time by
166.12the city council after a public hearing, notice of which is published in a newspaper of
166.13general circulation in the city and in the targeted neighborhood at least ten days nor
166.14more than 30 days before the date of the hearing. If the city council determines that the
166.15proposed modification is a significant modification to the program originally certified
166.16under paragraph (c), the city council shall implement the targeted revitalization program
166.17approval and certification process of this subdivision for the proposed modification.

166.18    Sec. 16. Minnesota Statutes 2008, section 469.204, subdivision 1, is amended to read:
166.19    Subdivision 1. Payment of state money. Upon receipt from a city of a certification
166.20that a revitalization program has been adopted or modified, the commissioner shall, within
166.2130 days, pay to the city the amount of state money identified as necessary to implement
166.22the revitalization program or program modification. State money may be paid to the
166.23city only to the extent that the appropriation limit for the city specified in subdivision 2
166.24is not exceeded. Once the state money has been paid to the city, it becomes targeted
166.25neighborhood community money for use by the city in accordance with an adopted
166.26revitalization program and subject only to the restrictions on its use in sections 469.201 to
166.27469.207 .

166.28    Sec. 17. Minnesota Statutes 2008, section 469.204, is amended by adding a subdivision
166.29to read:
166.30    Subd. 4. Revolving fund. A targeted community revitalization revolving fund
166.31is established in the state treasury. The fund consists of all money appropriated to the
166.32commissioner for the purposes of sections 469.201 to 469.207 and all proceeds received
166.33by the commissioner as the result of housing activities related to a targeted community
166.34revitalization program.

167.1    Sec. 18. Minnesota Statutes 2008, section 469.205, is amended to read:
167.2469.205 CITY POWERS; USES OF TARGETED NEIGHBORHOOD
167.3COMMUNITY MONEY.
167.4    Subdivision 1. Consolidation of existing powers in targeted neighborhoods
167.5communities. A city may exercise any of its corporate powers within a targeted
167.6neighborhood community. Those powers shall include, but not be limited to, all of
167.7the powers enumerated and granted to any city by chapters 462C, 469, and 474A. For
167.8the purposes of sections 469.048 to 469.068, a targeted neighborhood community is
167.9considered an industrial development district. A city may exercise the powers of sections
167.10469.048 to 469.068 in conjunction with, and in addition to, exercising the powers granted
167.11by sections 469.001 to 469.047 and chapter 462C, in order to promote and assist housing
167.12construction and rehabilitation within a targeted neighborhood community. For the
167.13purposes of section 462C.02, subdivision 9, a targeted neighborhood community is
167.14considered a "targeted area."
167.15    Subd. 2. Grants and loans. In addition to the authority granted by other law, a city
167.16may make grants, loans, and other forms of public assistance to individuals, for-profit and
167.17nonprofit corporations, and other organizations to implement a targeted revitalization
167.18program. The public assistance must contain the terms the city considers proper to
167.19implement a targeted revitalization program.
167.20    Subd. 3. Eligible uses of targeted neighborhood community money. The city may
167.21spend targeted neighborhood community money for any purpose authorized by subdivision
167.221 or 2, except that an amount equal to at least 50 percent of the state payment under section
167.23469.204 made to the city must be used for housing activities. Use of target neighborhood
167.24targeted community money must be authorized in a targeted revitalization program.

167.25    Sec. 19. Minnesota Statutes 2008, section 469.207, subdivision 2, is amended to read:
167.26    Subd. 2. Annual report. A city that begins to implement a revitalization program
167.27in a calendar year must, by March 1 of the succeeding calendar year, provide a detailed
167.28report on the revitalization program or programs being implemented in the city. The report
167.29must describe the status of the program implementation and analyze whether the intended
167.30outcomes identified in section 469.203, subdivision 1, clause (4), are being achieved. The
167.31report must include at least the following:
167.32(1) the number of housing units, including lost units, removed, created, lost,
167.33replaced, relocated, and assisted as a result of the program. The level of rent of the units
167.34and the income of the households affected must be included in the report;
168.1(2) the number and type of commercial establishments removed, created, and
168.2assisted as a result of a revitalization program. The report must include information
168.3regarding the number of new jobs created by category, whether the jobs are full time or
168.4part time, and the salary or wage levels of both new and expanded jobs in the affected
168.5commercial establishments;
168.6(3) a description of a statement of the cost of the public improvement projects that
168.7are part of the program and the number of jobs created for each $20,000 of money spent
168.8on commercial projects and applicable public improvement projects;
168.9(4) the increase in the tax capacity for the city as a result of the assistance to
168.10commercial and housing assistance; and
168.11(5) the amount of private investment that is a result of the use of public money
168.12in a targeted neighborhood community.
168.13The report must be submitted to the commissioner, the Minnesota housing finance
168.14agency, and the legislative audit commission, and must be available to the public.

168.15    Sec. 20. Minnesota Statutes 2008, section 580.07, is amended to read:
168.16580.07 POSTPONEMENT.
168.17    Subdivision 1. Postponement by mortgagee. The sale may be postponed, from
168.18time to time, by the party conducting the foreclosure, by inserting a notice of the
168.19postponement, as soon as practicable, in the newspaper in which the original advertisement
168.20was published, at the expense of the party requesting the postponement. The notice shall
168.21be published only once.
168.22    Subd. 2. Postponement by mortgagor or owner. (a) If all or a part of the property
168.23to be sold is classified as homestead under section 273.124 and contains one to four
168.24dwelling units, the mortgagor or owner may postpone the sale to the first date that is not
168.25a Saturday, Sunday, or legal holiday and is five months after the originally scheduled
168.26date of sale in the manner provided in this subdivision. To postpone a foreclosure sale
168.27pursuant to this subdivision, at any time after the first publication of the notice of mortgage
168.28foreclosure sale under section 580.03 but at least 15 days prior to the scheduled sale date
168.29specified in that notice, the mortgagor shall: (1) execute a sworn affidavit in the form set
168.30forth in subdivision 3, (2) record the affidavit in the office of each county recorder and
168.31registrar of titles where the mortgage was recorded, and (3) file with the sheriff conducting
168.32the sale and deliver to the attorney foreclosing the mortgage, a copy of the recorded
168.33affidavit, showing the date and office in which the affidavit was recorded. Recording of
168.34the affidavit and postponement of the foreclosure sale pursuant to this subdivision shall
168.35automatically reduce the mortgagor's redemption period under section 580.23 to five
169.1weeks. The postponement of a foreclosure sale pursuant to this subdivision does not
169.2require any change in the contents of the notice of sale, service of the notice of sale if the
169.3occupant was served with the notice of sale prior to postponement under this subdivision,
169.4or publication of the notice of sale if publication was commenced prior to postponement
169.5under this subdivision, notwithstanding the service and publication time periods specified
169.6in section 580.03, but the sheriff's certificate of sale shall indicate the actual date of the
169.7foreclosure sale and the actual length of the mortgagor's redemption period. No notice
169.8of postponement need be published. An affidavit complying with subdivision 3 shall be
169.9prima facie evidence of the facts stated therein, and shall be entitled to be recorded. The
169.10right to postpone a foreclosure sale pursuant to this subdivision may be exercised only
169.11once, regardless whether the mortgagor reinstates the mortgage prior to the postponed
169.12mortgage foreclosure sale.
169.13(b) If the automatic stay under United States Code, title 11, section 362, applies
169.14to the mortgage foreclosure after a mortgagor or owner requests postponement of the
169.15sheriff's sale under this section, then when the automatic stay is no longer applicable, the
169.16mortgagor's or owner's election to shorten the redemption period to five weeks under this
169.17section remains applicable to the mortgage foreclosure.
169.18    Subd. 3. Affidavit form. The affidavit referred to in subdivision 2 shall be in
169.19substantially the following form and shall contain all of the following information.
169.20STATE OF ______________
169.21COUNTY OF ______________
169.22    ________________________________________ (whether one or more, "Owner"),
169.23being first duly sworn on oath, states as follows:
169.24    1. (He is) (She is) (They are) the owner(s) or mortgagor(s) of the real property (the
169.25"Property") situated in __________ (Name of) County, Minnesota, legally described in the
169.26attached published Notice of Mortgage Foreclosure Sale (the "Notice"), and make this
169.27affidavit for the purpose of postponing the foreclosure sale of the Property pursuant to
169.28Minnesota Statutes, section 580.07, subdivision 2, for five months from the date scheduled
169.29in the attached Notice.
169.30    2. The Property is classified as homestead under Minnesota Statutes, section
169.31273.124, is occupied by Owner as a homestead, and is improved with not more than
169.32four dwelling units.
169.33    3. Owner has elected to shorten Owner's redemption period from any foreclosure
169.34sale of the Property to five weeks in exchange for the postponement of the foreclosure
169.35sale for five months.
170.1___________________________________________ (signature(s) of owner)
170.2Signed and sworn to (or affirmed) before me on .......... (date) by ................ (name(s)
170.3of person(s) making statement).
170.4___________________________________________ (signature of notary public)
170.5Notary Public
170.6EFFECTIVE DATE.This section is effective one month after the date of final
170.7enactment, and applies to foreclosure sales scheduled to occur on or after said effective
170.8date.

170.9    Sec. 21. REPEALER.
170.10Minnesota Statutes 2008, sections 469.203, subdivision 3; and 469.204, subdivisions
170.112 and 3, are repealed.

170.12ARTICLE 10
170.13MINNESOTA HERITAGE

170.14    Section 1. Minnesota Statutes 2008, section 129D.13, is amended to read:
170.15129D.13 GRANTS.
170.16    Subdivision 1. Distribution. The commissioner shall distribute the money provided
170.17by sections 129D.11 to 129D.13. Twice Annually the commissioner shall make block
170.18grants which shall be distributed in equal amounts to public stations for operational costs.
170.19The commissioner shall allocate money appropriated for the purposes of sections 129D.11
170.20to 129D.13 in such a manner that each eligible public station receives a block grant. In
170.21addition, the commissioner shall make matching grants to public stations. Matching grants
170.22shall be used for operational costs and shall be allocated using the procedure developed
170.23for distribution of state money under this section for grants made in fiscal year 1979. No
170.24station's matching grant in any fiscal year shall exceed the amount of Minnesota-based
170.25contributions received by that station in the previous fiscal year. Grants made pursuant to
170.26this subdivision may only be given to those federally licensed stations that are certified as
170.27eligible for community service grants through the Corporation for Public Broadcasting.
170.28Grant funds not expended by a station during the first year of the biennium do not cancel
170.29and may be carried over into the second fiscal year.
170.30    Subd. 2. Exclusions from contribution amount. In calculating the amount of
170.31contributions received by a public station pursuant to subdivision 1, there shall be
170.32excluded: contributions, whether monetary or in kind, from the Corporation for Public
171.1Broadcasting; tax generated funds, including payments by public or private elementary
171.2and secondary schools; that portion of any foundation or corporation donation in excess
171.3of $500 $2,500 from any one contributor in a calendar the previous station fiscal year;
171.4contributions from any source if made for the purpose of capital expenditures; and
171.5contributions from all sources based outside the state.
171.6    Subd. 3. Report. Each educational station receiving a grant shall annually report
171.7by July 1 annually by August 1 to the commissioner the purposes for which the money
171.8was used in the past fiscal year and the anticipated use of the money in the next fiscal
171.9year. This report shall be submitted along with a new grant request submission. The report
171.10shall be certified by an independent auditor or a certified public accountant. If the report
171.11is not submitted by September 1, the commissioner may withhold from the educational
171.12station 45 percent of the amount to which it was entitled based upon the contribution of
171.13the previous fiscal year, and may redistribute that money to other educational stations.
171.14    Subd. 4. Program categories and funding programs. The Board of the Arts
171.15may develop program categories and funding programs in television, film and other
171.16public media.

171.17    Sec. 2. Minnesota Statutes 2008, section 129D.14, subdivision 4, is amended to read:
171.18    Subd. 4. Application. To be eligible for a grant under this section, a licensee
171.19shall submit an application to the commissioner within the deadline prescribed by the
171.20commissioner according to state grant policies. Each noncommercial radio station
171.21receiving a grant shall report annually within the deadline prescribed by August 1 to the
171.22commissioner the purposes for which the money was used in the past fiscal year and the
171.23anticipated use of the money for the next fiscal year. This report shall be submitted along
171.24with a new grant request submission. If the application and report are not submitted within
171.25the deadline prescribed by the commissioner, the grant may be redistributed to the other
171.26noncommercial radio stations eligible for a grant under this section.

171.27    Sec. 3. Minnesota Statutes 2008, section 129D.14, subdivision 5, is amended to read:
171.28    Subd. 5. State community service block grants. (a) The commissioner shall
171.29determine eligibility for block grants and the allocation of block grant money on the basis
171.30of audited financial records of the station to receive the block grant funds for the station's
171.31fiscal year preceding the year in which the grant is made, as well as on the basis of the
171.32other requirements set forth in this section. The commissioner shall annually distribute
171.33block grants equally to all stations that comply with the eligibility requirements and for
171.34which a licensee applies for a block grant. Grant funds not expended by a station during
172.1the first year of the biennium do not cancel and may be carried over into the second fiscal
172.2year. The commissioner may promulgate rules to implement this section.
172.3    (b) A station may use grant money under this section for any radio station expenses.

172.4    Sec. 4. Minnesota Statutes 2008, section 129D.14, subdivision 6, is amended to read:
172.5    Subd. 6. Audit. A station that receives a grant under this section shall have an
172.6audit of its financial records made by an independent auditor or Corporation for Public
172.7Broadcasting accepted audit at the end of for the fiscal year for which it received the grant.
172.8The audit shall include a review of station promotion, operation, and management and an
172.9analysis of the station's use of the grant money. A copy of the most recent audit shall be
172.10filed with the commissioner. If neither is available, The commissioner may accept a letter
172.11of negative assurance from an independent auditor or a certified public accountant.

172.12    Sec. 5. Minnesota Statutes 2008, section 129D.155, is amended to read:
172.13129D.155 REPAYMENT OF FUNDS.
172.14    State funds distributed to public television or noncommercial radio stations and used
172.15to purchase equipment assets must be repaid to the state, without interest, if the assets
172.16purchased with these funds are sold within five years or otherwise converted to a person
172.17other than a nonprofit or municipal corporation. The amount due to the state shall be the
172.18net amount realized from the sale of the assets, but shall not exceed the amount of state
172.19funds advanced for the purchase of the asset. Public television and noncommercial radio
172.20stations receiving state funds must report biennially to the legislature on the location and
172.21usage of assets purchased with state funds.

172.22    Sec. 6. COLOCATION REPORT.
172.23    The Management Analysis Division of the Department of Finance must study and
172.24report to the legislature by January 15, 2010, on possible colocation of the offices of the
172.25Council on Black Minnesotans, the Council on Affairs of Chicano/Latino People, the
172.26Council on Asian-Pacific Minnesotans, and the metropolitan area office of the Indian
172.27Affairs Council. The report must include analysis of potential cost savings, when those
172.28savings could be realized, and the effect of potential colocation on operations of the
172.29councils.

172.30    Sec. 7. LEGISLATIVE PROGRAMMING.
172.31Any company distributing television programming in Minnesota via satellite shall
172.32include coverage of Minnesota legislative proceedings in its programming to the full
173.1extent that the legislative proceedings are available free of charge to the satellite television
173.2company.

173.3    Sec. 8. REVISOR'S INSTRUCTION.
173.4    In Minnesota Statutes, the revisor of statutes shall change the term "commission" to
173.5"center" wherever the term appears as part of or in reference to "Minnesota Humanities
173.6Commission."