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CHAPTER 363--H.F.No. 1812

An act

relating to the financing of state government; making supplemental appropriations and reductions in appropriations for early childhood through grade 12 education, higher education, environment and natural resources, energy, agriculture, veterans affairs, military affairs, economic development, transportation, public safety, judiciary, state government, and health and human services; modifying certain statutory provisions and laws; providing for certain programs; fixing and limiting fees; authorizing rulemaking; requiring reports; appropriating money;

amending Minnesota Statutes 2006, sections 15A.0815, subdivisions 2, as amended, 3; 17.4988, subdivisions 2, 3; 41A.09, subdivision 3a; 93.481, by adding a subdivision; 97A.475, subdivision 29; 103A.204; 103A.43; 103B.151, subdivision 1; 103G.271, subdivision 6; 103G.291, by adding a subdivision; 103G.615, subdivision 2; 116.07, subdivision 4; 116L.04, subdivision 1; 116L.05, subdivisions 3, 5; 116L.16; 116L.20, subdivision 2; 116U.26; 121A.19; 122A.21; 123B.59, subdivision 1; 123B.62; 124D.04, subdivisions 3, 6, 8, 9; 124D.05, by adding a subdivision; 124D.118, subdivision 4; 124D.55; 125A.65, subdivision 4, by adding a subdivision; 125A.76, by adding a subdivision; 126C.10, subdivision 31, by adding a subdivision; 126C.17, subdivision 9; 126C.40, subdivision 1; 126C.45; 126C.51; 126C.52, subdivision 2, by adding a subdivision; 126C.53; 126C.55; 127A.45, subdivision 16; 136A.101, subdivision 8; 136G.11, subdivision 1; 145.9255, subdivision 1; 168.013, by adding a subdivision; 168.1255, by adding a subdivision; 168A.29, as amended; 190.19, subdivision 1, by adding a subdivision; 190.25, subdivision 3, by adding a subdivision; 192.501, by adding subdivisions; 216C.41, subdivision 4; 256.741, subdivisions 2, 2a, 3; 256.969, subdivisions 2b, 3a; 256B.0571, subdivisions 8, 9; 256B.0621, subdivisions 2, 6, 10; 256B.0625, subdivision 13e; 256B.0924, subdivisions 4, 6; 256B.19, subdivision 1d; 256B.32, subdivision 1; 256B.431, subdivision 23; 256B.69, subdivisions 5a, 6; 256B.75; 256D.44, subdivisions 2, 5; 270B.085, by adding a subdivision; 298.223, subdivision 2; 298.28, subdivision 9d, as added; 298.292, subdivision 2, as amended; 298.2961, subdivision 2; 299A.45, subdivision 1; 299A.705, by adding a subdivision; 325E.313; 325E.314; 357.021, subdivisions 6, 7; 446A.12, subdivision 1; 462A.22, subdivision 1; 473.1565, subdivision 3; 518A.50; 518A.53, subdivision 5; 609.531, subdivision 1; Minnesota Statutes 2007 Supplement, sections 80A.65, subdivision 1; 103G.291, subdivision 3; 116L.17, subdivision 1; 123B.54; 124D.531, subdivision 1; 125A.76, subdivision 2; 126C.44; 127A.49, subdivisions 2, 3; 136A.121, subdivision 7a; 144E.45, subdivision 2; 171.06, subdivision 2; 190.19, subdivision 2; 216C.41, subdivision 3; 256.741, subdivision 1; 256B.0625, subdivision 20; 256B.0631, subdivisions 1, 3; 256B.441, subdivisions 1, 55, 56; 256B.5012, subdivision 7; 256J.621; 297I.06, subdivision 3; Laws 1999, chapter 223, article 2, section 72; Laws 2005, chapter 156, article 1, section 11, subdivision 2; Laws 2006, chapter 282, article 2, section 27, subdivision 4; Laws 2007, chapter 45, article 1, section 3, subdivision 4; Laws 2007, chapter 54, article 1, section 11; Laws 2007, chapter 57, article 1, section 4, subdivisions 4, 6; Laws 2007, chapter 135, article 1, sections 3, subdivisions 2, 3; 6, subdivision 4; Laws 2007, chapter 143, article 1, section 3, subdivision 2; Laws 2007, chapter 144, article 1, sections 3, subdivision 2; 5, subdivision 5; 7; Laws 2007, chapter 146, article 1, section 24, subdivisions 2, 3, 4, 5, 6, 7, 8; article 2, section 46, subdivisions 2, 3, 4, 6, 9, 13, 14, 20; article 3, sections 23, subdivision 2; 24, subdivisions 3, 4, 9; article 4, section 16, subdivisions 2, 3, 6, 8; article 5, sections 11, subdivision 1; 13, subdivisions 2, 3, 4; article 7, section 4; article 9, section 17, subdivisions 2, 3, 4, 8, 9, 13; Laws 2007, chapter 147, article 7, section 71; article 19, section 3, subdivision 4; Laws 2007, chapter 148, article 1, section 12, subdivision 4; Laws 2007, First Special Session chapter 2, article 1, sections 8, subdivision 2; 11, subdivisions 1, 2, 6; Laws 2008, chapter 152, article 1, section 6, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 5; 13B; 85; 94; 103B; 114D; 116J; 124D; 129D; 136F; 144; 173; 192; 256B; proposing coding for new law as Minnesota Statutes, chapter 62U; repealing Minnesota Statutes 2006, sections 126C.21, subdivision 1; 127A.45, subdivision 7a; 256.741, subdivision 15; 341.31; Laws 2004, chapter 188, section 2; Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 3, 4.

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

ARTICLE 1

SUMMARY
(General Fund Only, After Forecast Adjustments)

Section 1.

new text begin GENERAL FUND SUMMARY. new text end

new text begin The amounts shown in this section summarize general fund direct appropriations, and transfers into the general fund from other funds, made in this act. new text end

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin E-12 Education new text end new text begin $ new text end new text begin (1,216,000) new text end new text begin $ new text end new text begin 26,958,000 new text end new text begin $ new text end new text begin 25,742,000 new text end
new text begin Higher Education new text end new text begin (7,150,000) new text end new text begin (14,411,000) new text end new text begin (21,561,000) new text end
new text begin Environment and Natural Resources new text end new text begin (328,000) new text end new text begin (2,728,000) new text end new text begin (3,056,000) new text end
new text begin Energy new text end new text begin (2,670,000) new text end new text begin (1,436,000) new text end new text begin (4,106,000) new text end
new text begin Agriculture new text end new text begin (200,000) new text end new text begin 388,000 new text end new text begin 188,000 new text end
new text begin Veterans Affairs new text end new text begin -0- new text end new text begin 4,145,000 new text end new text begin 4,145,000 new text end
new text begin Military Affairs new text end new text begin 390,000 new text end new text begin 390,000 new text end
new text begin Economic Development new text end new text begin (2,425,000) new text end new text begin 1,512,000 new text end new text begin (913,000) new text end
new text begin Transportation new text end new text begin (255,000) new text end new text begin (255,000) new text end
new text begin Public Safety new text end new text begin 268,000 new text end new text begin (10,490,000) new text end new text begin (10,222,000) new text end
new text begin State Government new text end new text begin (1,104,000) new text end new text begin (1,104,000) new text end
new text begin Health and Human Services new text end new text begin (46,789,000) new text end new text begin (124,196,000) new text end new text begin (170,985,000) new text end
new text begin Subtotal of Appropriations new text end new text begin (60,510,000) new text end new text begin (121,227,000) new text end new text begin (181,737,000) new text end
new text begin Transfers In new text end new text begin 22,330,000 new text end new text begin 94,897,000 new text end new text begin 117,227,000 new text end
new text begin Total new text end new text begin $ new text end new text begin (82,840,000) new text end new text begin $ new text end new text begin (216,124,000) new text end new text begin $ new text end new text begin (298,964,000) new text end

ARTICLE 2

EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION

Section 1.

Minnesota Statutes 2006, section 121A.19, is amended to read:

121A.19 DEVELOPMENTAL SCREENING AID.

Each school year, the state must pay a district for each child or student screened by the district according to the requirements of section 121A.17. The amount of state aid for each child or student screened shall be: (1) deleted text begin $50deleted text end new text begin $75new text end for a child screened at age three; (2) deleted text begin $40deleted text end new text begin $50new text end for a child screened at age four; (3) deleted text begin $30deleted text end new text begin $40new text end for a child screened at age five or six prior to kindergarten; and (4) $30 for a student screened within 30 days after first enrolling in a public school kindergarten if the student has not previously been screened according to the requirements of section 121A.17. If this amount of aid is insufficient, the district may permanently transfer from the general fund an amount that, when added to the aid, is sufficient. Developmental screening aid shall not be paid for any student who is screened more than 30 days after the first day of attendance at a public school kindergarten, except if a student transfers to another public school kindergarten within 30 days after first enrolling in a Minnesota public school kindergarten program. In this case, if the student has not been screened, the district to which the student transfers may receive developmental screening aid for screening that student when the screening is performed within 30 days of the transfer date.

Sec. 2.

Minnesota Statutes 2006, section 122A.21, is amended to read:

122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.

new text begin Subdivision 1. new text end

new text begin Licensure applications. new text end

Each application for the issuance, renewal, or extension of a license to teachnew text begin , including applications for licensure via portfolio under subdivision 2,new text end must be accompanied by a processing fee of $57. Each application for issuing, renewing, or extending the license of a school administrator or supervisor must be accompanied by a processing fee in the amount set by the Board of Teaching. The processing fee for a teacher's license and for the licenses of supervisory personnel must be paid to the executive secretary of the appropriate board. The executive secretary of the board shall deposit the fees with the commissioner of finance. The fees as set by the board are nonrefundable for applicants not qualifying for a license. However, a fee must be refunded by the commissioner of finance in any case in which the applicant already holds a valid unexpired license. The board may waive or reduce fees for applicants who apply at the same time for more than one license.

new text begin Subd. 2. new text end

new text begin Licensure via portfolio. new text end

new text begin (a) An eligible candidate may use licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent with the applicable Board of Teaching licensure rules. new text end

new text begin (b) A candidate for initial licensure must submit to the Educator Licensing Division at the department one portfolio demonstrating pedagogical competence and one portfolio demonstrating content competence. new text end

new text begin (c) A candidate seeking to add a licensure field must submit to the Educator Licensing Division at the department one portfolio demonstrating content competence. new text end

new text begin (d) A candidate must pay to the executive secretary of the Board of Teaching a $300 fee for the first portfolio submitted for review and a $200 fee for any portfolio submitted subsequently. The fees must be paid to the executive secretary of the Board of Teaching. The revenue generated from the fee must be deposited in an education licensure portfolio account in the special revenue fund. The fees set by the Board of Teaching are nonrefundable for applicants not qualifying for a license. The Board of Teaching may waive or reduce fees for candidates based on financial need. new text end

Sec. 3.

Minnesota Statutes 2007 Supplement, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $14,813,000deleted text end new text begin $14,814,000new text end in fiscal year 2008, deleted text begin $11,124,000deleted text end new text begin $9,109,000new text end in fiscal year 2009, deleted text begin $8,866,000deleted text end new text begin $7,286,000new text end in fiscal year 2010, and deleted text begin $6,631,000deleted text end new text begin $6,878,000new text end in fiscal year 2011 and later are appropriated from the general fund to the commissioner of education for payment of debt service equalization aid under section 123B.53.

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

Sec. 4.

Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:

Subdivision 1.

To qualify.

(a) An independent or special school district qualifies to participate in the alternative facilities bonding and levy program if the district has:

(1) more than 66 students per grade;

(2) over 1,850,000 square feet of space and the average age of building space is 15 years or older or over 1,500,000 square feet and the average age of building space is 35 years or older;

(3) insufficient funds from projected health and safety revenue and capital facilities revenue to meet the requirements for deferred maintenance, to make accessibility improvements, or to make fire, safety, or health repairs; and

(4) a ten-year facility plan approved by the commissioner according to subdivision 2.

(b) An independent or special school district not eligible to participate in the alternative facilities bonding and levy program under paragraph (a) qualifies for limited participation in the program if the district has:

(1) one or more health and safety projects with an estimated cost of $500,000 or more per site that would qualify for health and safety revenue except for the project size limitation in section 123B.57, subdivision 1, paragraph (b); and

(2) insufficient funds from capital facilities revenue to fund those projects.

new text begin (c) Notwithstanding the square footage limitation in paragraph (a), clause (2), a school district that qualified for eligibility under paragraph (a) as of July 1, 2007, remains eligible for funding under this section as long as the district continues to meet the requirements of paragraph (a), clauses (1), (3), and (4). new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2006, section 123B.62, is amended to read:

123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.

(a) In addition to other bonding authority, with approval of the commissioner, a district may issue general obligation bonds for certain capital projects under this section. The bonds must be used only to make capital improvements including:

(1) under section 126C.10, subdivision 14, total operating capital revenue uses specified in clauses (4), (6), (7), (8), (9), and (10);

(2) the cost of energy modifications;

(3) improving disability accessibility to school buildings; deleted text begin anddeleted text end

(4) bringing school buildings into compliance with life and safety codes and fire codesnew text begin ; andnew text end

new text begin (5) modifying buildings and equipment for securitynew text end .

(b) Before a district issues bonds under this subdivision, it must publish notice of the intended projects, the amount of the bond issue, and the total amount of district indebtedness.

(c) A bond issue tentatively authorized by the board under this subdivision becomes finally authorized unless a petition signed by more than 15 percent of the registered voters of the district is filed with the school board within 30 days of the board's adoption of a resolution stating the board's intention to issue bonds. The percentage is to be determined with reference to the number of registered voters in the district on the last day before the petition is filed with the board. The petition must call for a referendum on the question of whether to issue the bonds for the projects under this section. The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this section.

(d) The bonds must be paid off within deleted text begin tendeleted text end new text begin 15 new text end years of issuance. The bonds must be issued in compliance with chapter 475, except as otherwise provided in this section. A tax levy must be made for the payment of principal and interest on the bonds in accordance with section 475.61. The sum of the tax levies under this section and section 123B.61 for each year must not exceed the limit specified in section 123B.61. The levy for each year must be reduced as provided in section 123B.61. A district using an excess amount in the debt redemption fund to retire the bonds shall report the amount used for this purpose to the commissioner by July 15 of the following fiscal year. A district having an outstanding capital loan under section 126C.69 or an outstanding debt service loan under section 126C.68 must not use an excess amount in the debt redemption fund to retire the bonds.

(e) Notwithstanding paragraph (d), bonds issued by a district within the first five years following voter approval of a combination according to section 123A.37, subdivision 2, must be paid off within 20 years of issuance. All the other provisions and limitation of paragraph (d) apply.

Sec. 6.

Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:

Subd. 3.

Pupils in adjoining states.

new text begin Except as provided under an agreement with an adjoining state under section 124D.041, new text end a non-Minnesota pupil who resides in an adjoining state in a district that borders Minnesota may enroll in a Minnesota district if either the board of the district in which the pupil resides or state in which the pupil resides pays tuition to the district in which the pupil is enrolled.

Sec. 7.

Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:

Subd. 6.

Tuition payments.

new text begin (a) new text end In each odd-numbered year, before March 1, the commissioner must agree to rates of tuition for Minnesota elementary and secondary pupils attending in other states for the next two fiscal years when the other state agrees to negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the designated authority in each state for pupils who reside in an adjoining state and enroll in a Minnesota district. The rates must be at least equal to the tuition specified in section 124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate, a Minnesota school district may negotiate a tuition rate with the school district in the other state that sends a pupil to or receives a pupil from the Minnesota school district. The tuition rate for a pupil with a disability must be equal to the actual cost of instruction and services provided. The resident district of a Minnesota pupil attending in another state under this section must pay the amount of tuition agreed upon in this section to the district of attendance, prorated on the basis of the proportion of the school year attended.

new text begin (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached between the state of Minnesota and an adjoining state pursuant to section 124D.041, the provisions of section 124D.041 and the agreement shall apply to all enrollment transfers between Minnesota and the adjoining state, and provisions of paragraph (a) and subdivision 9 shall not apply. new text end

Sec. 8.

Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:

Subd. 8.

Effective if reciprocal.

This section is effective with respect to deleted text begin South Dakota upon enactment of provisions by South Dakota that the commissioner determines are essentially similar to the provisions for Minnesota pupils in this section. This section is effective with respect todeleted text end any deleted text begin otherdeleted text end bordering state upon enactment of provisions by the bordering state that the commissioner determines are essentially similar to the provisions for Minnesota pupils in this section.

Sec. 9.

Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:

Subd. 9.

Appeal to the commissioner.

If a Minnesota school district cannot agree with an adjoining state on a tuition rate for a Minnesota student attending school in that state and that state has met the requirements in subdivision 8, then the student's parent or guardian may request that the commissioner deleted text begin agree ondeleted text end new text begin setnew text end a tuition rate for the student. The Minnesota district must pay the amount of tuition the commissioner deleted text begin agrees upondeleted text end new text begin setsnew text end .

Sec. 10.

new text begin [124D.041] RECIPROCITY WITH ADJOINING STATES. new text end

new text begin Subdivision 1. new text end

new text begin Agreements. new text end

new text begin (a) The commissioner may enter into an agreement with the designated authority from an adjoining state to establish an enrollment options program between Minnesota and the adjoining state. Any agreement entered into pursuant to this section must specify the following: new text end

new text begin (1) for students who are not residents of Minnesota, the enrollment options program applies only to a student whose resident school district borders Minnesota; new text end

new text begin (2) the commissioner must negotiate equal, reciprocal rates with the designated authority from the adjoining state; new text end

new text begin (3) if the adjoining state sends more students to Minnesota than Minnesota sends to the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed upon under clause (2) for the excess number of students sent to Minnesota; new text end

new text begin (4) if Minnesota sends more students to the adjoining state than the adjoining state sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed upon under clause (2) for the excess number of students sent to the adjoining state; new text end

new text begin (5) the application procedures for the enrollment options program between Minnesota and the adjoining state; new text end

new text begin (6) the reasons for which an application for the enrollment options program between Minnesota and the adjoining may be denied; and new text end

new text begin (7) that a Minnesota school district is not responsible for transportation for any resident student attending school in an adjoining state under the provisions of this section. A Minnesota school district may, at its discretion, provide transportation services for such a student. new text end

new text begin (b) Any agreement entered into pursuant to this section may specify additional terms relating to any student in need of special education and related services pursuant to chapter 125A. Any additional terms must apply equally to both states. new text end

new text begin Subd. 2. new text end

new text begin Pupil accounting. new text end

new text begin (a) Any student from an adjoining state enrolled in Minnesota pursuant to this section is included in the receiving school district's average daily membership and pupil units according to section 126C.05 as if the student were a resident of another Minnesota school district attending the receiving school district under section 124D.03. new text end

new text begin (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this section is included in the resident school district's average daily membership and pupil units according to section 126C.05 as if the student were a resident of the district attending another Minnesota school district under section 124D.03. new text end

new text begin Subd. 3. new text end

new text begin Procedures. new text end

new text begin (a) The Department of Education must establish procedures relating to the application process, the collection or payment of funds under the provisions of any agreement established pursuant to this section, and the collection of data necessary to implement any agreement established pursuant to this section. new text end

new text begin (b) Notwithstanding sections 124A.04 and 124A.05, if an agreement is established between Minnesota and an adjoining state pursuant to this section, the provisions of this section and the agreement shall apply to all enrollment transfers between Minnesota and the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary, including provisions relating to tuition payments, shall not apply. new text end

new text begin (c) Notwithstanding paragraph (a), any payments to adjoining states under this section shall be made according to section 127A.45, subdivision 16. new text end

new text begin (d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b), and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not apply to: (i) enrollment transfers between Minnesota and a school district in an adjoining state enrolling fewer than 150 pupils that is exempted from participation in the program under the laws of the adjoining state; or (ii) enrollment transfers between Minnesota and a school district in an adjoining state under a board agreement initiated in fiscal year 2009 to serve students in grade levels discontinued by the resident district. new text end

Sec. 11.

Minnesota Statutes 2006, section 124D.05, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Exception. new text end

new text begin Notwithstanding subdivisions 1 and 2, if an agreement is reached between the state of Minnesota and an adjoining state pursuant to section 124D.041, the provisions of section 124D.041 and the agreement shall apply to all enrollment transfers between Minnesota and the adjoining state, and provisions of subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments, shall not apply. new text end

Sec. 12.

Minnesota Statutes 2006, section 124D.118, subdivision 4, is amended to read:

Subd. 4.

Reimbursement.

In accordance with program guidelines, the commissioner shall reimburse each participating public or nonpublic school deleted text begin 14deleted text end new text begin 20 new text end cents for each half-pint of milk that is served to kindergarten students and is not part of a school lunch or breakfast reimbursed under section 124D.111 or 124D.1158.

Sec. 13.

new text begin [124D.141] STATE ADVISORY COUNCIL ON EARLY CHILDHOOD EDUCATION AND CARE. new text end

new text begin Subdivision 1. new text end

new text begin Membership; duties. new text end

new text begin Two members of the house of representatives, one appointed by the speaker and one appointed by the minority leader; and two members of the senate appointed by the Subcommittee on Committees of the Committee on Rules and Administration, including one member of the minority; and two parents with a child under age six, shall be added to the membership of the State Advisory Council on Early Education and Care. The council must fulfill the duties required under the federal Improving Head Start for School Readiness Act of 2007 as provided in Public Law 110-134. new text end

new text begin Subd. 2. new text end

new text begin Additional duties. new text end

new text begin The following duties are added to those assigned to the council under federal law: new text end

new text begin (1) make recommendations on the most efficient and effective way to leverage state and federal funding streams for early childhood and child care programs; new text end

new text begin (2) make recommendations on how to coordinate or colocate early childhood and child care programs in one state Office of Early Learning; new text end

new text begin (3) review program evaluations regarding high-quality early childhood programs; and new text end

new text begin (4) make recommendations to the governor and legislature, including proposed legislation on how to most effectively create a high quality early childhood system in Minnesota in order to improve the educational outcomes of children so that all children are school-ready by 2020. new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin An amount up to $12,500 from federal child care and development fund administrative funds and up to $12,500 from prekindergarten exploratory project funds appropriated under Laws 2007, chapter 147, article 19, section 3, may be used to reimburse the parents on the council and for technical assistance and administrative support of the State Advisory Council on Early Childhood Education and Care. This funding stream is for fiscal year 2009. The council may pursue additional funds from state, federal, and private sources. If additional operational funds are received, the council must reduce the amount of prekindergarten exploratory project funds used in an equal amount. new text end

Sec. 14.

Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, is amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic education aid for fiscal year 2005 is $36,509,000. The state total adult basic education aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 2008 equals $40,650,000, plus any amount that is not paid during the previous fiscal year as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education aid for later fiscal years equals:

(1) the state total adult basic education aid for the preceding fiscal year plus any amount that is not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times

(2) the lesser of:

(i) 1.03; or

(ii) deleted text begin the greater of 1.00 or the ratio of the state total contact hours in the first prior program year to the state total contact hours in the second prior program yeardeleted text end new text begin the average growth in state total contact hours over the prior 10 program yearsnew text end .

Beginning in fiscal year 2002, two percent of the state total adult basic education aid must be set aside for adult basic education supplemental service grants under section 124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals the difference between the amount computed in paragraph (a), and the state total basic population aid under subdivision 2.

Sec. 15.

Minnesota Statutes 2006, section 124D.55, is amended to read:

124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.

The commissioner shall pay 60 percent of the fee that is charged to an eligible individual for the full battery of a general education development (GED) test, but not more than deleted text begin $20deleted text end new text begin $40 new text end for an eligible individual.

Sec. 16.

Minnesota Statutes 2006, section 125A.65, subdivision 4, is amended to read:

Subd. 4.

Unreimbursed costs.

(a) For fiscal year 2006, in addition to the tuition charge allowed in subdivision 3, the academies may charge the child's district of residence for the academy's unreimbursed cost of providing an instructional aide assigned to that child, after deducting the special education aid under section 125A.76, attributable to the child, if that aide is required by the child's individual education plan. Tuition received under this paragraph must be used by the academies to provide the required service.

(b) For fiscal year deleted text begin 2007deleted text end new text begin 2008 new text end and later, the special education aid paid to the academies shall be increased by the academy's unreimbursed cost of providing deleted text begin andeleted text end new text begin one to one new text end instructional deleted text begin aidedeleted text end new text begin and behavioral management aides new text end assigned to a child, after deducting the special education aid under section 125A.76 attributable to the child, if deleted text begin that aide isdeleted text end new text begin the aides are new text end required by the child's individual education plan. Aid received under this paragraph must be used by the academies to provide the required service.

(c) For fiscal year deleted text begin 2007deleted text end new text begin 2008 new text end and later, the special education aid paid to the district of the child's residence shall be reduced by the amount paid to the academies for district residents under paragraph (b).

(d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008, the commissioner shall make an estimated final adjustment payment to the Minnesota State Academies for general education aid and special education aid for the prior fiscal year by August 15.

new text begin (e) For fiscal year 2007, the academies may retain receipts received through mutual agreements with school districts for one to one behavior management aides. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2006, section 125A.65, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Third-party reimbursement. new text end

new text begin The Minnesota State Academies must seek reimbursement under section 125A.21 from third parties for the cost of services provided by the Minnesota State Academies whenever the services provided are otherwise covered by a child's public or private health plan. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for revenue in fiscal years 2008 and later. new text end

Sec. 18.

Minnesota Statutes 2007 Supplement, section 125A.76, subdivision 2, is amended to read:

Subd. 2.

Special education initial aid.

The special education initial aid equals the sum of the following amounts computed using current year data:

(1) 68 percent of the salary of each essential person employed in the district's program for children with a disability during the fiscal year, whether the person is employed by one or more districts or a Minnesota correctional facility operating on a fee-for-service basis;

(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy for the Blind, 68 percent of the salary of each new text begin one to one new text end instructionalnew text begin and behavior managementnew text end aide assigned to a child attending the academy, if deleted text begin thatdeleted text end deleted text begin aidedeleted text end deleted text begin isdeleted text end new text begin the aides are new text end required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with public, private, or voluntary agencies other than school districts, in place of special instruction and services provided by the district, 52 percent of the difference between the amount of the contract and the general education revenue, excluding basic skills revenue and alternative teacher compensation revenue, and referendum equalization aid attributable to a pupil, calculated using the resident district's average general education revenue and referendum equalization aid per adjusted pupil unit for the fraction of the school day the pupil receives services under the contract. This includes children who are residents of the state, receive services under this subdivision and subdivision 1, and are placed in a care and treatment facility by court action in a state that does not have a reciprocity agreement with the commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8;

(4) for special instruction and services provided to any pupil by contracting for services with public, private, or voluntary agencies other than school districts, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the contract for that pupil;

(5) for supplies and equipment purchased or rented for use in the instruction of children with a disability, an amount equal to 47 percent of the sum actually expended by the district, or a Minnesota correctional facility operating on a fee-for-service basis, but not to exceed an average of $47 in any one school year for each child with a disability receiving instruction;

(6) for fiscal years 1997 and later, special education base revenue shall include amounts under clauses (1) to (5) for special education summer programs provided during the base year for that fiscal year;

(7) the cost of providing transportation services for children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4); and

(8) the district's transition-disabled program initial aid according to section 124D.454, subdivision 3.

The department shall establish procedures through the uniform financial accounting and reporting system to identify and track all revenues generated from third-party billings as special education revenue at the school district level; include revenue generated from third-party billings as special education revenue in the annual cross-subsidy report; and exclude third-party revenue from calculation of excess cost aid to the districts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 19.

Minnesota Statutes 2006, section 125A.76, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Adjustments for tuition reciprocity with adjoining states. new text end

new text begin (a) If an agreement is reached between the state of Minnesota and an adjoining state pursuant to section 124D.041 that requires a special education tuition payment from the state of Minnesota to the adjoining state, the tuition payment shall be made from the special education aid appropriation for that year, and the state total special education aid under subdivision 4 shall be reduced by the amount of the payment. new text end

new text begin (b) If an agreement is reached between the state of Minnesota and an adjoining state pursuant to section 124D.041 that requires a special education tuition payment from an adjoining state to the state of Minnesota, the special education aid appropriation for that year and the state total special education aid under subdivision 4 shall be increased by the amount of the payment. new text end

new text begin (c) If an agreement is reached between the state of Minnesota and an adjoining state pursuant to section 124D.041 that requires special education tuition payments to be made between the two states and not between districts in the two states, the special education aid for a Minnesota school district serving a student with a disability from the adjoining state shall be calculated according to section 127A.47, subdivision 7, except that no reduction shall be made in the special education aid paid to the resident district. new text end

Sec. 20.

Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:

Subd. 31.

Transition revenue.

(a) A district's transition allowance equals the greater of zero or the product of the ratio of the number of adjusted marginal cost pupil units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference between: (1) the lesser of the district's general education revenue per adjusted marginal cost pupil unit for fiscal year 2003 or the amount of general education revenue the district would have received per adjusted marginal cost pupil unit for fiscal year 2004 according to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 2004 excluding transition revenue divided by the number of adjusted marginal cost pupil units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.

(b) A district's transition revenue for fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2006 deleted text begin and laterdeleted text end new text begin through 2009new text end equals the sum of the product of the district's transition allowance times the district's adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.

new text begin (c) A district's transition revenue for fiscal year 2010 and later equals the sum of the product of the district's transition allowance times the district's adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue under subdivision 31a plus the district's transition for tuition reciprocity revenue under subdivision 31c. new text end

Sec. 21.

Minnesota Statutes 2006, section 126C.10, is amended by adding a subdivision to read:

new text begin Subd. 31c. new text end

new text begin Transition for tuition reciprocity revenue. new text end

new text begin For the first year that a tuition reciprocity agreement with an adjoining state is in effect under section 124D.041 and later, a school district's transition for tuition reciprocity revenue equals the greater of zero or the difference between the sum of the general education revenue and net tuition revenue the district would have received for pupils enrolled under section 124D.041 for the first year the agreement is in effect if the agreement had not been in effect, and the sum of the district's general education revenue and net tuition revenue for the first year the agreement is in effect. new text end

Sec. 22.

Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10, subdivision 1, may be increased in the amount approved by the voters of the district at a referendum called for the purpose. The referendum may be called by the board or shall be called by the board upon written petition of qualified voters of the district. The referendum must be conducted one or two calendar years before the increased levy authority, if approved, first becomes payable. Only one election to approve an increase may be held in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the referendum must be held on the first Tuesday after the first Monday in November. The ballot must state the maximum amount of the increased revenue per resident marginal cost pupil unit. The ballot may state a schedule, determined by the board, of increased revenue per resident marginal cost pupil unit that differs from year to year over the number of years for which the increased revenue is authorized or may state that the amount shall increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may state that existing referendum levy authority is expiring. In this case, the ballot may also compare the proposed levy authority to the existing expiring levy authority, and express the proposed increase as the amount, if any, over the expiring referendum levy authority. The ballot must designate the specific number of years, not to exceed ten, for which the referendum authorization applies. The ballot, including a ballot on the question to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate the term "per resident marginal cost pupil unit" as "per pupil." The notice required under section 275.60 may be modified to read, in cases of renewing existing levies new text begin at the same amount per pupil as in the previous yearnew text end :

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU deleted text begin MAY BE VOTING FOR A PROPERTY TAX INCREASEdeleted text end new text begin ARE VOTING TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED TO EXPIREnew text end ."

The ballot may contain a textual portion with the information required in this subdivision and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of ........., School District No. .., be approved?"

If approved, an amount equal to the approved revenue per resident marginal cost pupil unit times the resident marginal cost pupil units for the school year beginning in the year after the levy is certified shall be authorized for certification for the number of years approved, if applicable, or until revoked or reduced by the voters of the district at a subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more than 30 days before the day of the referendum to each taxpayer a notice of the referendum and the proposed revenue increase. The board need not mail more than one notice to any taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be those shown to be owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer. Every property owner whose name does not appear on the records of the county auditor or the county treasurer is deemed to have waived this mailed notice unless the owner has requested in writing that the county auditor or county treasurer, as the case may be, include the name on the records for this purpose. The notice must project the anticipated amount of tax increase in annual dollars for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring and project the anticipated amount of increase over the existing referendum levy in the first year, if any, in annual dollars for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will result in an increase in your property taxes." However, in cases of renewing existing levies, the notice may include the following statement: "Passage of this referendum deleted text begin may result in an increase in your property taxesdeleted text end new text begin extends an existing operating referendum at the same amount per pupil as in the previous yearnew text end ."

(c) A referendum on the question of revoking or reducing the increased revenue amount authorized pursuant to paragraph (a) may be called by the board and shall be called by the board upon the written petition of qualified voters of the district. A referendum to revoke or reduce the revenue amount must state the amount per resident marginal cost pupil unit by which the authority is to be reduced. Revenue authority approved by the voters of the district pursuant to paragraph (a) must be available to the school district at least once before it is subject to a referendum on its revocation or reduction for subsequent years. Only one revocation or reduction referendum may be held to revoke or reduce referendum revenue for any specific year and for years thereafter.

(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of qualified voters in excess of 15 percent of the registered voters of the district on the day the petition is filed with the board. A referendum invoked by petition must be held on the date specified in paragraph (a).

(e) The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this subdivision.

(f) At least 15 days before the day of the referendum, the district must submit a copy of the notice required under paragraph (b) to the commissioner and to the county auditor of each county in which the district is located. Within 15 days after the results of the referendum have been certified by the board, or in the case of a recount, the certification of the results of the recount by the canvassing board, the district must notify the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for elections conducted on or after July 1, 2008. new text end

Sec. 23.

Minnesota Statutes 2006, section 126C.40, subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

(a) When an independent or a special school district or a group of independent or special school districts finds it economically advantageous to rent or lease a building or land for any instructional purposes or for school storage or furniture repair, and it determines that the operating capital revenue authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the commissioner for permission to make an additional capital expenditure levy for this purpose. An application for permission to levy under this subdivision must contain financial justification for the proposed levy, the terms and conditions of the proposed lease, and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must include: the reasonableness of the price, the appropriateness of the space to the proposed activity, the feasibility of transporting pupils to the leased building or land, conformity of the lease to the laws and rules of the state of Minnesota, and the appropriateness of the proposed lease to the space needs and the financial condition of the district. The commissioner must not authorize a levy under this subdivision in an amount greater than the cost to the district of renting or leasing a building or land for approved purposes. The proceeds of this levy must not be used for custodial or other maintenance services. A district may not levy under this subdivision for the purpose of leasing or renting a district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this subdivision for the purpose of leasing: (1) a newly constructed building used primarily for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed building addition or additions used primarily for regular kindergarten, elementary, or secondary instruction that contains more than 20 percent of the square footage of the previously existing building.

(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the purpose of leasing or renting a district-owned building or site to itself only if the amount is needed by the district to make payments required by a lease purchase agreement, installment purchase agreement, or other deferred payments agreement authorized by law, and the levy meets the requirements of paragraph (c). A levy authorized for a district by the commissioner under this paragraph may be in the amount needed by the district to make payments required by a lease purchase agreement, installment purchase agreement, or other deferred payments agreement authorized by law, provided that any agreement include a provision giving the school districts the right to terminate the agreement annually without penalty.

(e) The total levy under this subdivision for a district for any year must not exceed deleted text begin $100deleted text end new text begin $150 new text end times the resident pupil units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been submitted to the Department of Education after April 1, 1998, the term "instructional purpose" as used in this subdivision excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school district to exceed the limit in paragraph (e) if the school district petitions the commissioner for approval. The commissioner shall grant approval to a school district to exceed the limit in paragraph (e) for not more than five years if the district meets the following criteria:

(1) the school district has been experiencing pupil enrollment growth in the preceding five years;

(2) the purpose of the increased levy is in the long-term public interest;

(3) the purpose of the increased levy promotes colocation of government services; and

(4) the purpose of the increased levy is in the long-term interest of the district by avoiding over construction of school facilities.

(h) A school district that is a member of an intermediate school district may include in its authority under this section the costs associated with leases of administrative and classroom space for intermediate school district programs. This authority must not exceed deleted text begin $25deleted text end new text begin $43new text end times the adjusted marginal cost pupil units of the member districts. This authority is in addition to any other authority authorized under this section.

(i) In addition to the allowable capital levies in paragraph (a), a district that is a member of the "Technology and Information Education Systems" data processing joint board, that finds it economically advantageous to enter into a lease purchase agreement for a building for a group of school districts or special school districts for staff development purposes, may levy for its portion of lease costs attributed to the district within the total levy limit in paragraph (e).

Sec. 24.

Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district for the purposes specified in this section. The maximum amount which may be levied for all costs under this section shall be equal to $30 multiplied by the district's adjusted marginal cost pupil units for the school year. The proceeds of the levy must be reserved and used for directly funding the following purposes or for reimbursing the cities and counties who contract with the district for the following purposes: (1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention program as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; (3) to pay the costs for a gang resistance education training curriculum in the district's schools; (4) to pay the costs for security in the district's schools and on school property; (5) to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary opt-in suicide prevention tools, and violence prevention measures taken by the school district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed school social workers, licensed school psychologists, and licensed alcohol and chemical dependency counselors to help provide early responses to problems. For expenditures under clause (1), the district must initially attempt to contract for services to be provided by peace officers or sheriffs with the police department of each city or the sheriff's department of the county within the district containing the school receiving the services. If a local police department or a county sheriff's department does not wish to provide the necessary services, the district may contract for these services with any other police or sheriff's department located entirely or partially within the school district's boundaries.

(b) A school district that is a member of an intermediate school district may include in its authority under this section the costs associated with safe schools activities authorized under paragraph (a) for intermediate school district programs. This authority must not exceed $10 times the adjusted marginal cost pupil units of the member districts. This authority is in addition to any other authority authorized under this section. Revenue raised under this paragraph must be transferred to the intermediate school district.

(c) deleted text begin Ifdeleted text end A school district deleted text begin spendsdeleted text end new text begin must set aside at least $3 per adjusted marginal cost pupil unit of the new text end safe schools levy proceeds new text begin for the purposes authorized new text end under paragraph (a), clause (6)deleted text begin ,deleted text end new text begin .new text end The district must annually certify that its total spending on services provided by the employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures for these purposes, excluding amounts spent under this section, in the previous year plus the amount spent under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010. new text end

Sec. 25.

Minnesota Statutes 2006, section 126C.45, is amended to read:

126C.45 ICE ARENA LEVY.

(a) Each year, an independent school district operating and maintaining an ice arena, may levy for the net operational costs of the ice arena. The levy may not exceed deleted text begin 90 percent ofdeleted text end the net actual costs of operation of the arena for the previous year. Net actual costs are defined as operating costs less any operating revenues.

(b) Any district operating and maintaining an ice arena must demonstrate to the satisfaction of the Office of Monitoring in the department that the district will offer equal sports opportunities for male and female students to use its ice arena, particularly in areas of access to prime practice time, team support, and providing junior varsity and younger level teams for girls' ice sports and ice sports offerings.

Sec. 26.

Minnesota Statutes 2006, section 126C.51, is amended to read:

126C.51 APPLICATION OF LIMITING TAX LEGISLATION.

Notwithstanding the provisions of section 471.69 or 471.75, or of any other provision of law which by per capita limitation, local tax rate limitation, or otherwise, limits the power of a district to incur any debt or to issue any warrant or order, a new text begin school new text end district new text begin or intermediate school district new text end has the powers in sections 126C.50 to 126C.56 specifically conferred upon it and all powers incident and necessary to carrying out the purposes of sections 126C.50 to 126C.56.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:

Subd. 2.

Limitations.

The board new text begin of any school district new text end may also borrow money in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of federal school aids to be distributed by or through the department. The aggregate of such borrowings under this subdivision shall never exceed 75 percent of such aids which are receivable by said school district in the deleted text begin schooldeleted text end new text begin fiscal new text end year deleted text begin (from July 1 to June 30)deleted text end in which the money is borrowed, as estimated and certified by the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2006, section 126C.52, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Intermediate school districts. new text end

new text begin (a) The board of an intermediate school district may borrow money in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in anticipation of the receipt of: new text end

new text begin (1) state aids for schools as defined in Minnesota Statutes; new text end

new text begin (2) federal school aids to be distributed by or through the department; and new text end

new text begin (3) membership fees and tuition payments from its member school districts. new text end

new text begin The aggregate of such borrowings under this subdivision shall never exceed 75 percent of such aids, fees, and tuition payments which are receivable by the intermediate school district in the fiscal year in which the money is borrowed, as estimated and certified by the commissioner. new text end

new text begin (b) The board of an intermediate school district may, upon receipt of a written resolution by each of its member school districts, pledge the member district's full faith and credit and unlimited taxing powers to repay each member district's pro rata share of any certificates issued or the amount paid by the state under section 126C.55, subdivision 2, plus interest, if the revenues specified in paragraph (a) and any other revenues of the intermediate school district are insufficient to do so. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2006, section 126C.53, is amended to read:

126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF INDEBTEDNESS.

The board new text begin of a school district or intermediate school district new text end may authorize and effect such borrowing, and may issue such certificates of indebtedness upon passage of a resolution specifying the amount and purposes for which it deems such borrowing is necessary. The resolution must be adopted by a vote of at least two-thirds of its members. The board must fix the amount, date, maturity, form, denomination, and other details of the certificates of indebtedness, not inconsistent with this chapter. The board must fix the date and place for receipt of bids for the purchase of the certificates when bids are required and direct the clerk to give notice of the date and place for bidding.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2006, section 126C.55, is amended to read:

126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.

Subdivision 1.

Definitions.

For the purposes of this section, the term "debt obligation" means:

(1) a deleted text begin tax or aid anticipationdeleted text end certificate of indebtedness new text begin issued under section 126C.52new text end ;

(2) a certificate of participation issued under section 126C.40, subdivision 6; or

(3) a general obligation bond.

Subd. 2.

Notifications; payment; appropriation.

(a) If a new text begin school new text end district new text begin or intermediate school district new text end believes that it may be unable to make a principal or interest payment on any outstanding debt obligation on the date that payment is due, it must notify the commissioner as soon as possible, but not less than 15 working days before the date that principal or interest payment is due. The notice must include the name of the new text begin school new text end districtnew text begin or intermediate school districtnew text end , an identification of the debt obligation issue in question, the date the payment is due, the amount of principal and interest due on the payment date, the amount of principal or interest that the new text begin school new text end district new text begin or intermediate school district new text end will be unable to repay on that date, the paying agent for the debt obligation, the wire transfer instructions to transfer funds to that paying agent, and an indication as to whether a payment is being requested by the new text begin school new text end district new text begin or intermediate school district new text end under this section. If a paying agent becomes aware of a potential default, it shall inform the commissioner of that fact. After receipt of a notice which requests a payment under this section, after consultation with the new text begin school new text end district new text begin or intermediate school district new text end and the paying agent, and after verification of the accuracy of the information provided, the commissioner shall notify the commissioner of finance of the potential default. The notice must include a final figure as to the amount due that the new text begin school new text end district new text begin or intermediate school district new text end will be unable to repay on the date due.

(b) Except as provided in subdivision 9, upon receipt of this notice from the commissioner, the commissioner of finance shall issue a warrant and authorize the commissioner of education to pay to the paying agent for the debt obligation the specified amount on or before the date due. The amounts needed for the purposes of this subdivision are annually appropriated to the department from the state general fund.

(c) The Departments of Education and Finance must jointly develop detailed procedures for new text begin school new text end districts new text begin and intermediate school districts new text end to notify the state that they have obligated themselves to be bound by the provisions of this section, procedures for new text begin school new text end districts new text begin or intermediate school districts new text end and paying agents to notify the state of potential defaults and to request state payment under this section, and procedures for the state to expedite payments to prevent defaults. The procedures are not subject to chapter 14.

Subd. 3.

School district bound; interest rate on state paid amount.

If, at the request of a new text begin school new text end districtnew text begin or intermediate school districtnew text end , the state has paid part or all of the principal or interest due on a district's debt obligation on a specific date, the new text begin school district or intermediate schoolnew text end district is bound by all provisions of this section and the amount paid shall bear taxable interest from the date paid until the date of repayment at the invested cash rate as it is certified by the commissioner of finance. Interest shall only accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4 and other payments received from the district.

Subd. 4.

Pledge of district's full faith and credit.

If, at the request of a new text begin school new text end districtnew text begin or intermediate school districtnew text end , the state has paid part or all of the principal or interest due on a district's debt obligation on a specific date, the pledge of the full faith and credit and unlimited taxing powers of the new text begin schoolnew text end district new text begin or the member districts of the intermediate districtnew text end to repay the principal and interest due on those debt obligations shall also, without an election or the requirement of a further authorization, become a pledge of the full faith and credit and unlimited taxing powers of the new text begin schoolnew text end district new text begin or the member districts of the intermediate districtnew text end to repay to the state the amount paid, with interest. Amounts paid by the state must be repaid in the order in which the state payments were made.

new text begin Subd. 4a. new text end

new text begin Aid reduction for repayment. new text end

new text begin (a) Except as provided in this subdivision, the state must reduce the state aid payable to the school district or intermediate school district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273 by the amount paid by the state under this section on behalf of the district, plus the interest due on it, and the amount reduced must revert from the appropriate account to the state general fund. Payments from the school district endowment fund or any federal aid payments shall not be reduced. new text end

new text begin (b) For an intermediate school district, the state aid payable to the intermediate school district must first be reduced, before any reduction is made to the state aids payable to the member districts. If the state aid payable to the intermediate school district is not sufficient to repay the state, state aid payable to member districts may be reduced proportionately based on the ratio of each member district's adjusted net tax capacity to the total adjusted net tax capacity of all member districts. new text end

new text begin (c) If, after review of the financial situation of the school district or intermediate school district, the commissioner advises the commissioner of finance that a total reduction of aids would cause an undue hardship on or an undue disruption of the educational program of the district, the commissioner, with the approval of the commissioner of finance, may establish a different schedule for reduction of aids to repay the state. The amount of aids to be reduced is decreased by any amounts repaid to the state by the district from other revenue sources. new text end

Subd. 6.

Tax levy for repayment.

(a) With the approval of the commissioner, a district may levy in the year the state makes a payment under this section an amount up to the amount necessary to provide funds for the repayment of the amount paid by the state plus interest through the date of estimated repayment by the district. The proceeds of this levy may be used only for this purpose unless they are in excess of the amount actually due, in which case the excess shall be used to repay other state payments made under this section or shall be deposited in the debt redemption fund of the school district. This levy shall be an increase in the levy limits of the district for purposes of section 275.065, subdivision 6. The amount of aids to be reduced to repay the state shall be decreased by the amount levied. This levy by the district is not eligible for debt service equalization under section 123B.53.

(b) If the state is not repaid in full for a payment made under this section by November 30 of the calendar year following the year in which the state makes the payment, the commissioner shall require the district to certify a property tax levy in an amount up to the amount necessary to provide funds for repayment of the amount paid by the state plus interest through the date of estimated repayment by the school district. To prevent undue hardship, the commissioner may allow the district to certify the levy over a five-year period. The proceeds of the levy may be used only for this purpose unless they are in excess of the amount actually due, in which case the excess shall be used to repay other state payments made under this section or shall be deposited in the debt redemption fund of the district. This levy shall be an increase in the levy limits of the school district for purposes of section 275.065, subdivision 6. If the commissioner orders the district to levy, the amount of aids reduced to repay the state shall be decreased by the amount levied. This levy by the district is not eligible for debt service equalization under section 123B.53 or any successor provision. A levy under this subdivision must be explained as a specific increase at the meeting required under section 275.065, subdivision 6.

new text begin (c) For an intermediate district, a levy made by a member district under paragraph (a) or (b) to pay its pro rata share must be spread by the commissioner as a tax rate based on the total adjusted net tax capacity of the member school districts. The proceeds of the levy must be remitted by the member school district to the intermediate school district and must be used by the intermediate district only to repay the state amounts owed. Any amount in excess of the amount owed to the state must be repaid to the member school districts and the commissioner shall adjust each member district's property tax levy in the next year. new text end

Subd. 7.

Election as to mandatory application.

A new text begin school new text end district new text begin or intermediate school district new text end may covenant and obligate itself, prior to the issuance of an issue of debt obligations, to notify the commissioner of a potential default and to use the provisions of this section to guarantee payment of the principal and interest on those debt obligations when due. If the district obligates itself to be bound by this section, it must covenant in the resolution that authorizes the issuance of the debt obligations to deposit with the paying agent three business days prior to the date on which a payment is due an amount sufficient to make that payment or to notify the commissioner under subdivision 1 that it will be unable to make all or a portion of that payment. A district that has obligated itself must include a provision in its agreement with the paying agent for that issue that requires the paying agent to inform the commissioner if it becomes aware of a potential default in the payment of principal or interest on that issue or if, on the day two business days prior to the date a payment is due on that issue, there are insufficient funds to make the payment on deposit with the paying agent. Funds invested in a refunding escrow account established under section 475.67 that are to become available to the paying agent on a principal or interest payment date are deemed to be on deposit with the paying agent three business days before the payment date. If a district either covenants to be bound by this section or accepts state payments under this section to prevent a default of a particular issue of debt obligations, the provisions of this section shall be binding as to that issue as long as any debt obligation of that issue remain outstanding. If the provisions of this section are or become binding for more than one issue of debt obligations and a district is unable to make payments on one or more of those issues, the district must continue to make payments on the remaining issues.

Subd. 8.

Mandatory plan; technical assistance.

If the state makes payments on behalf of a new text begin school new text end district new text begin or intermediate school district new text end under this section or the district defaults in the payment of principal or interest on an outstanding debt obligation, it must submit a plan to the commissioner for approval specifying the measures it intends to implement to resolve the issues which led to its inability to make the payment and to prevent further defaults. The department must provide technical assistance to the district in preparing its plan. If the commissioner determines that a district's plan is not adequate, the commissioner shall notify the district that the plan has been disapproved, the reasons for the disapproval, and that the state shall not make future payments under this section for debt obligations issued after the date specified in that notice until its plan is approved. The commissioner may also notify the district that until its plan is approved, other aids due the district will be withheld after a date specified in the notice.

Subd. 9.

State bond rating.

If the commissioner of finance determines that the credit rating of the state would be adversely affected thereby, the commissioner of finance shall not issue warrants under subdivision 2 for the payment of principal or interest on any debt obligations for which a district did not, prior to their issuance, obligate itself to be bound by the provisions of this section.

Subd. 10.

Continuing disclosure agreements.

The commissioner of finance may enter into written agreements or contracts relating to the continuing disclosure of information needed to facilitate the ability of school districts new text begin or intermediate school districts new text end to issue debt obligations according to federal securities laws, rules, and regulations, including securities and exchange commission rules and regulations, section 240.15c2-12. Such agreements or contracts may be in any form the commissioner of finance deems reasonable and in the state's best interests.

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:

Subd. 16.

Payments to third parties.

Notwithstanding subdivision 3, the current year aid payment percentage of the amounts under section 123A.26, subdivision 3new text begin and section 124D.041new text end , shall be paid in equal installments on August 30, December 30, and March 30, with a final adjustment payment on October 30 of the next fiscal year of the remaining amount.

Sec. 32.

Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is amended to read:

Subd. 2.

Abatements.

Whenever by virtue of chapter 278, sections 270C.86, 375.192, or otherwise, the net tax capacity or referendum market value of any district for any taxable year is changed after the taxes for that year have been spread by the county auditor and the local tax rate as determined by the county auditor based upon the original net tax capacity is applied upon the changed net tax capacities, the county auditor shall, prior to February 1 of each year, certify to the commissioner of education the amount of any resulting net revenue loss that accrued to the district during the preceding year. Each year, the commissioner shall pay an abatement adjustment to the district in an amount calculated according to the provisions of this subdivision. This amount shall be deducted from the amount of the levy authorized by section 126C.46. The amount of the abatement adjustment must be the product of:

(1) the net revenue loss as certified by the county auditor, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy in the third preceding year according to the following:

(A) section 123B.57, if the district received health and safety aid according to that section for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs according to that section for the second preceding year;

(C) section 124D.135, subdivision 3, if the district received early childhood family education aid according to section 124D.135 for the second preceding year;

(D) section 126C.17, subdivision 6, if the district received referendum equalization aid according to that section for the second preceding year;

deleted text begin (E) section 126C.13, if the district received general education aid according to section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second preceding year; deleted text end

deleted text begin (F)deleted text end new text begin (E) new text end section 126C.10, subdivision 13a, if the district received operating capital aid according to section 126C.10, subdivision 13b, in the second preceding year;

deleted text begin (G)deleted text end new text begin (F) new text end section 126C.10, subdivision 29, if the district received equity aid according to section 126C.10, subdivision 30, in the second preceding year;

deleted text begin (H)deleted text end new text begin (G) new text end section 126C.10, subdivision 32, if the district received transition aid according to section 126C.10, subdivision 33, in the second preceding year;

deleted text begin (I)deleted text end new text begin (H) new text end section 123B.53, subdivision 5, if the district received debt service equalization aid according to section 123B.53, subdivision 6, in the second preceding year;

deleted text begin (J)deleted text end new text begin (I) new text end section 124D.22, subdivision 3, if the district received school-age care aid according to section 124D.22, subdivision 4, in the second preceding year;

deleted text begin (K)deleted text end new text begin (J) new text end section 123B.591, subdivision 3, if the district received deferred maintenance aid according to section 123B.591, subdivision 4, in the second preceding year; and

deleted text begin (L)deleted text end new text begin (K) new text end section 126C.10, subdivision 35, if the district received alternative teacher compensation equalization aid according to section 126C.10, subdivision 36, paragraph (a), in the second preceding year; to

(ii) the total amount of the district's certified levy in the third preceding December, plus or minus auditor's adjustments.

Sec. 33.

Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is amended to read:

Subd. 3.

Excess tax increment.

(a) If a return of excess tax increment is made to a district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon decertification of a tax increment district, the school district's aid and levy limitations must be adjusted for the fiscal year in which the excess tax increment is paid under the provisions of this subdivision.

(b) An amount must be subtracted from the district's aid for the current fiscal year equal to the product of:

(1) the amount of the payment of excess tax increment to the district, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy for the fiscal year in which the excess tax increment is paid according to the following:

(A) section 123B.57, if the district received health and safety aid according to that section for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs according to that section for the second preceding year;

(C) section 124D.135, subdivision 3, if the district received early childhood family education aid according to section 124D.135 for the second preceding year;

(D) section 126C.17, subdivision 6, if the district received referendum equalization aid according to that section for the second preceding year;

deleted text begin (E) section 126C.13, if the district received general education aid according to section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second preceding year; deleted text end

deleted text begin (F)deleted text end new text begin (E) new text end section 126C.10, subdivision 13a, if the district received operating capital aid according to section 126C.10, subdivision 13b, in the second preceding year;

deleted text begin (G)deleted text end new text begin (F) new text end section 126C.10, subdivision 29, if the district received equity aid according to section 126C.10, subdivision 30, in the second preceding year;

deleted text begin (H)deleted text end new text begin (G) new text end section 126C.10, subdivision 32, if the district received transition aid according to section 126C.10, subdivision 33, in the second preceding year;

deleted text begin (I)deleted text end new text begin (H) new text end section 123B.53, subdivision 5, if the district received debt service equalization aid according to section 123B.53, subdivision 6, in the second preceding year;

deleted text begin (J)deleted text end new text begin (I) new text end section 124D.22, subdivision 3, if the district received school-age care aid according to section 124D.22, subdivision 4, in the second preceding year;

deleted text begin (K)deleted text end new text begin (J) new text end section 123B.591, subdivision 3, if the district received deferred maintenance aid according to section 123B.591, subdivision 4, in the second preceding year; and

deleted text begin (L)deleted text end new text begin (K) new text end section 126C.10, subdivision 35, if the district received alternative teacher compensation equalization aid according to section 126C.10, subdivision 36, paragraph (a), in the second preceding year; to

(ii) the total amount of the district's certified levy for the fiscal year, plus or minus auditor's adjustments.

(c) An amount must be subtracted from the school district's levy limitation for the next levy certified equal to the difference between:

(1) the amount of the distribution of excess increment; and

(2) the amount subtracted from aid pursuant to clause (a).

If the aid and levy reductions required by this subdivision cannot be made to the aid for the fiscal year specified or to the levy specified, the reductions must be made from aid for subsequent fiscal years, and from subsequent levies. The school district must use the payment of excess tax increment to replace the aid and levy revenue reduced under this subdivision.

(d) This subdivision applies only to the total amount of excess increments received by a district for a calendar year that exceeds $25,000.

Sec. 34.

Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to read:

Subd. 13.

Preadvanced placement, advanced placement, international baccalaureate, and concurrent enrollment programs.

For preadvanced placement, advanced placement, international baccalaureate, and concurrent enrollment programs under Minnesota Statutes, sections 120B.132 and 124D.091:

$ 6,500,000 ..... 2008
$ 6,500,000 ..... 2009

Of this amount, $2,500,000 each year is for concurrent enrollment program aid under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the commissioner must proportionately reduce the aid payment to each district. new text begin Any balance in the first year does not cancel but is available in the second year.new text end

The base appropriation for fiscal year 2010 and later is $2,000,000.

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Laws 2007, chapter 146, article 2, section 46, subdivision 14, is amended to read:

Subd. 14.

Collaborative urban educator.

For new text begin the new text end collaborative urban educator deleted text begin grants under Minnesota Statutes, section 122A.641deleted text end new text begin programnew text end :

$ 528,000 ..... 2008
$ 528,000 ..... 2009

$210,000 each year is for the Southeast Asian teacher program at Concordia University, St. Paul; $159,000 each year is for the collaborative urban educator program at the University of St. Thomas; and $159,000 each year is for the Center for Excellence in Urban Teaching at Hamline University. Grant recipients must collaborate with urban and nonurban school districts.

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

Sec. 36.

Laws 2007, chapter 146, article 2, section 46, subdivision 20, is amended to read:

Subd. 20.

College-level examination program (CLEP).

For the college-level examination program (CLEP) under Minnesota Statutes, section 120B.131:

$ deleted text begin 1,650,000 deleted text end new text begin 850,000 new text end ..... 2008
$ deleted text begin 1,650,000 deleted text end new text begin 500,000 new text end ..... 2009

Any balance in the first year does not cancel but is available in the second year. new text begin This is a onetime appropriation.new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to read:

Subd. 2.

Report.

new text begin (a)new text end The task force must submit to the education policy and finance committees of the legislature by February 15, deleted text begin 2008deleted text end new text begin 2009new text end , a report that identifies and clearly and concisely explains each provision in state law or rule that exceeds deleted text begin or expands upondeleted text end a minimum federal requirement contained in law or regulation for providing special education programs and services to eligible students. The report also must recommend which state deleted text begin provisionsdeleted text end new text begin statutes and rulesnew text end that exceed deleted text begin or expand upondeleted text end a minimum federal requirement may be amended to conform with minimum federal requirementsnew text begin or made more effective as determined by a majority of the task force members. The task force must recommend rules governing the use of aversive and deprivation procedures by school district employees or persons under contract with a school districtnew text end . The task force expires when it submits its report to the legislature.

new text begin (b) Consistent with subdivision 1, the Department of Education member of the task force representing regulators shall be replaced with a parent advocate selected by a statewide organization that advocates on behalf of families with children with disabilities. new text end

new text begin (c) The Department of Education must provide technical assistance at the request of the task force. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to read:

Subd. 9.

Special Education Task Force.

For the task force to compare federal and state special education requirements:

$ deleted text begin 20,000 deleted text end new text begin 40,000 new text end ..... 2008

new text begin Any balance in the first year does not cancel but is available in the second year. new text end

This is a onetime appropriation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 39.

Laws 2007, chapter 146, article 5, section 11, subdivision 1, is amended to read:

Subdivision 1.

Fiscal year 2007 replacement aid.

Independent School District No. 2899, Plainview-Elgin-Millville, is eligible for replacement deleted text begin aiddeleted text end new text begin revenue new text end to offset its excess fund balance penalty for fiscal year 2007. new text begin The aid adjustment must be made under Laws 2007, chapter 146, article 5, section 13, subdivision 5. The levy adjustment of $6,600 must be included as part of the district's property taxes for taxes payable in 2009.new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 40.

Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to read:

Subd. 3.

Traditional school breakfast; kindergarten milk.

For traditional school breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 124D.118:

$ deleted text begin 5,460,000 deleted text end new text begin 5,583,000 new text end ..... 2008
$ deleted text begin 5,695,000 deleted text end new text begin 6,396,000 new text end ..... 2009

new text begin EFFECTIVE DATE. new text end

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

Sec. 41.

Laws 2007, chapter 146, article 7, section 4, is amended to read:

Sec. 4.

APPROPRIATIONS; DEPARTMENT OF EDUCATION.

Subdivision 1.

Department of Education.

Unless otherwise indicated, the sums indicated in this section are appropriated from the general fund to the Department of Education for the fiscal years designated.

Subd. 2.

Department.

(a) For the Department of Education:

$ 22,169,000 ..... 2008
$ deleted text begin 22,653,000 deleted text end new text begin 21,811,000 new text end ..... 2009

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

(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.

(c) $7,000 in fiscal year 2008 is for rulemaking under section 3.

(d) $40,000 each year is for an early hearing loss intervention coordinator under Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, subdivision 5, then the appropriation under this paragraph is reallocated for purposes of employing a world languages coordinator.

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

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

(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board of Teaching.

(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board of School Administrators.

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

(j) The expenditures of federal grants and aids as shown in the biennial budget document and its supplements are approved and appropriated and shall be spent as indicated.

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

new text begin (1) $50,000 in fiscal year 2009 is for an advisory task force for determining how the educational achievement of low-income students and students of color is impacted by education issues related to rigorous preparation and coursework, educators' professional development, English language learners, special education, GRAD tests, and the use of valid and reliable data on student preparation for postsecondary academic and career opportunities. This amount is not added to the base appropriation for fiscal year 2010 and later. The department shall not expend any funds unless a match of an equal amount of nonstate funds has been received for this purpose. new text end

new text begin (m) The base for fiscal year 2010 and later is $21,761,000. new text end

Sec. 42.

Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to read:

Subd. 4.

Health and developmental screening aid.

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

$ deleted text begin 3,159,000 deleted text end new text begin 2,624,000 new text end ..... 2008
$ deleted text begin 3,330,000 deleted text end new text begin 3,592,000 new text end ..... 2009

The 2008 appropriation includes $288,000 for 2007 and deleted text begin $2,871,000deleted text end new text begin $2,336,000new text end for 2008.

The 2009 appropriation includes deleted text begin $319,000deleted text end new text begin $259,000new text end for 2008 and deleted text begin $3,011,000deleted text end new text begin $3,333,000new text end for 2009.

new text begin EFFECTIVE DATE. new text end

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

Sec. 43.

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 1, is amended to read:

Subdivision 1.

Total Appropriation

$ deleted text begin 584,000deleted text end new text begin 148,000new text end

The appropriations in this section are from the general fund. The amounts that may be spent for each purpose are specified in the following subdivisions.

Sec. 44.

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 2, is amended to read:

Subd. 2.

Independent School District No. 239, Rushford-Peterson

(a)

Flood Enrollment Impact Aid

89,000

The commissioner of education shall pay to the school district flood enrollment impact aid equal to $5,394 times the number of pupils lost as a result of the floods of August 2007. The district must provide to the commissioner of education documentation of the number of pupils in average daily membership lost as a result of the flood.

(b)

deleted text begin Disaster Relief Facilities Grantdeleted text end

deleted text begin 250,000deleted text end

deleted text begin For facilities cleanup, repair, and replacement costs related to the floods of August 2007 not covered by the district's insurance settlement or through Federal Emergency Management Agency payments. The commissioner of education may request the school district to provide necessary information before awarding a grant. deleted text end

deleted text begin (c)deleted text end

Pupil Transportation Aid

40,000

For increased costs associated with transporting students as a result of the floods of August 2007.

Sec. 45.

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 6, is amended to read:

Subd. 6.

Disaster Relief Facilities Grants to Other Districts

deleted text begin 90,000deleted text end new text begin 14,000new text end

For facilities cleanup, repair, and replacement costs related to the floods of August 2007 not covered by the district's insurance settlement or through Federal Emergency Management Agency payments. The commissioner of education may request the school district to provide necessary information before awarding a grant. School districts not included in subdivisions 2 to 5 must be given priority in the allocation of this appropriation.

Sec. 46.

new text begin FUND TRANSFERS. new text end

new text begin Subdivision 1. new text end

new text begin Capital account transfers. new text end

new text begin Notwithstanding any law to the contrary, on June 30, 2008, a school district may transfer money from its reserved for operating capital account to its undesignated balance in the general fund. The amount transferred by any school district must not exceed $51 times the district's adjusted marginal cost pupil units for fiscal year 2007. This transfer may occur only after the school board has adopted a written resolution stating the amount of the transfer and declaring that the school district's operating capital needs are being met. new text end

new text begin Subd. 2. new text end

new text begin Balaton school district. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision 1, on June 30, 2008, Independent School District No. 411, Balaton, may transfer up to $70,000 from its reserved for operating capital account to its undesignated general fund balance. new text end

new text begin Subd. 3. new text end

new text begin East Central school district. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision 1, on June 30, 2008, Independent School District No. 2580, East Central, may transfer up to $300,000 from its reserved for operating capital account to its undesignated general fund balance. new text end

new text begin Subd. 4. new text end

new text begin Hills-Beaver Creek school district. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2008, Independent School District No. 671, Hills-Beaver Creek, may transfer up to $260,000 from its reserved for disabled accessibility account to its undesignated general fund balance without making a levy reduction. new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2008, Independent School District No. 671, Hills-Beaver Creek, may transfer up to $100,000 from its reserved for operating capital account to its undesignated general fund balance without making a levy reduction. new text end

new text begin Subd. 5. new text end

new text begin Rocori school district. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2008, Independent School District No. 750, Rocori, may transfer up to $82,000 from its reserved for disabled accessibility account to its undesignated general fund balance without making a levy reduction. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

new text begin ONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL YEAR 2009 ONLY. new text end

new text begin A school district's general education revenue under Minnesota Statutes, section 126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the district's adjusted marginal cost pupil units for that year. new text end

Sec. 48.

new text begin PRIORITY FOR NEW ALTERNATIVE COMPENSATION SCHOOL DISTRICTS AND CHARTER SCHOOLS, FISCAL YEARS 2009 TO 2010. new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415; 122A.416; and 126C.10, subdivisions 34, 35, and 36, for fiscal years 2009 and 2010 only, for school sites, school districts, or charter schools that had not applied as of March 20, 2008, to participate in the alternative teacher pay program, the Department of Education must authorize alternative compensation funding for applicants according to paragraphs (b) and (c). new text end

new text begin (b) For fiscal year 2009, the Department of Education shall qualify eligible school sites, school districts, and charter schools for alternative compensation revenue in the order of receipt of applications received after March 20, 2008, provided that the total alternative compensation aid entitlement authorized under this paragraph does not exceed $11,397,000. new text end

new text begin (c) In addition to the amounts authorized in paragraph (b), for fiscal year 2010, the Department of Education shall qualify eligible school sites, school districts, and charter schools for alternative compensation revenue in the order of receipt of applications received after March 20, 2008, provided that the total alternative compensation aid entitlement authorized under this paragraph does not exceed $2,899,000. new text end

Sec. 49.

new text begin VIRGINIA SCHOOL DISTRICT; EMERGENCY REPAIRS. new text end

new text begin Independent School District No. 701, Virginia, may levy up to $100,000 for emergency facilities repairs. This authority is in addition to any other levy authority granted to the district. The levy proceeds received under this section must be recognized in fiscal year 2009. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2009 only. new text end

Sec. 50.

new text begin EQUALIZING FACTORS. new text end

new text begin The commissioner shall adjust each referendum market value equalizing factor established under Minnesota Statutes, chapter 126C, by dividing the equalizing factor by the ratio of the statewide referendum market value as calculated using the definition of referendum market value that was in effect prior to the 2008 legislative session for assessment year 2008 to the statewide referendum market value that is in effect after the 2008 legislative session for that assessment year. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable in 2010, and thereafter. new text end

Sec. 51.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are appropriated from the general fund, unless otherwise indicated, to the Department of Education for the fiscal years designated. new text end

new text begin Subd. 2. new text end

new text begin Additional general education revenue. new text end

new text begin For additional general education aid: new text end

new text begin $ new text end new text begin 26,804,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin This appropriation is in addition to any other appropriation for this purpose. new text end

new text begin This 2009 appropriation includes $0 for 2008 and $26,804,000 for 2009. new text end

new text begin Subd. 3. new text end

new text begin Independent School District No. 239, Rushford-Peterson. new text end

new text begin For school district flood enrollment impact aid as a result of the floods of August 2007. new text end

new text begin $ new text end new text begin 158,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The base appropriation for fiscal year 2010 is $158,000. The base appropriation for later years is zero. new text end

new text begin The district must provide to the commissioner of education documentation of the additional pupil transportation costs and the number of pupils in average daily membership lost as a result of the flood. new text end

new text begin Up to $40,000 is for increased costs associated with transporting students as a result of the floods of August 2007. new text end

new text begin Subd. 4. new text end

new text begin Lancaster. new text end

new text begin For a grant to Independent School District No. 356, Lancaster, to replace the loss of sparsity revenue: new text end

new text begin $ new text end new text begin 100,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The base appropriation for fiscal years 2010 and 2011 is $100,000 per year. The base appropriation for later fiscal years is zero. new text end

new text begin Subd. 5. new text end

new text begin Principal's Leadership Institute. new text end

new text begin For a grant to the Principal's Leadership Institute under Minnesota Statutes, section 122A.74: new text end

new text begin $ new text end new text begin 275,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 6. new text end

new text begin Board of Teaching; licensure by portfolio. new text end

new text begin For the Board of Teaching for licensure by portfolio: new text end

new text begin $ new text end new text begin 17,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin This appropriation is from the educator licensure portfolio account of the special revenue fund. new text end

new text begin Subd. 7. new text end

new text begin Minnesota Humanities Commission. new text end

new text begin For a grant to the Minnesota Humanities Commission. new text end

new text begin $ new text end new text begin 275,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin This is a onetime appropriation. new text end

Sec. 52.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 126C.21, subdivision 1, new text end new text begin is repealed for revenue for fiscal year 2010 and later. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2006, section 127A.45, subdivision 7a, new text end new text begin is repealed. new text end

new text begin (c) new text end new text begin Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 3, and 4, new text end new text begin are repealed. new text end

ARTICLE 3

EDUCATION FORECAST ADJUSTMENTS

Section 1.

Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to read:

Subd. 2.

General education aid.

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

$ deleted text begin 5,618,342,000 deleted text end new text begin 5,600,647,000 new text end ..... 2008
$ deleted text begin 5,618,342,000 deleted text end new text begin 5,649,098,000 new text end ..... 2009

The 2008 appropriation includes deleted text begin $531,733,000deleted text end new text begin $536,251,000new text end for 2007 and deleted text begin $5,073,250,000deleted text end new text begin $5,064,396,000new text end for 2008.

The 2009 appropriation includes deleted text begin $546,314,000deleted text end new text begin $543,752,000new text end for 2008 and deleted text begin $5,072,028,000deleted text end new text begin $5,105,346,000 new text end for 2009.

Sec. 2.

Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to read:

Subd. 3.

Referendum tax base replacement aid.

For referendum tax base replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

$ deleted text begin 870,000 deleted text end new text begin 861,000 new text end ..... 2008

The 2008 appropriation includes deleted text begin $870,000deleted text end new text begin $861,000new text end for 2007 and $0 for 2008.

Sec. 3.

Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:

Subd. 4.

Enrollment options transportation.

For transportation of pupils attending postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

$ deleted text begin 95,000 deleted text end new text begin 48,000 new text end ..... 2008
$ deleted text begin 97,000 deleted text end new text begin 50,000 new text end ..... 2009

Sec. 4.

Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:

Subd. 5.

Abatement revenue.

For abatement aid under Minnesota Statutes, section 127A.49:

$ deleted text begin 1,343,000 deleted text end new text begin 1,333,000 new text end ..... 2008
$ deleted text begin 1,347,000 deleted text end new text begin 1,629,000 new text end ..... 2009

The 2008 appropriation includes $76,000 for 2007 and deleted text begin $1,267,000deleted text end new text begin $1,257,000new text end for 2008.

The 2009 appropriation includes deleted text begin $140,000deleted text end new text begin $139,000new text end for 2008 and deleted text begin $1,207,000deleted text end new text begin $1,490,000new text end for 2009.

Sec. 5.

Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:

Subd. 6.

Consolidation transition.

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

$ deleted text begin 565,000 deleted text end new text begin 240,000 new text end ..... 2008
$ deleted text begin 212,000 deleted text end new text begin 339,000 new text end ..... 2009

The 2008 appropriation includes $43,000 for 2007 and deleted text begin $522,000deleted text end new text begin $197,000new text end for 2008.

The 2009 appropriation includes deleted text begin $57,000deleted text end new text begin $21,000new text end for 2008 and deleted text begin $155,000deleted text end new text begin $318,000new text end for 2009.

Sec. 6.

Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:

Subd. 7.

Nonpublic pupil education aid.

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

$ deleted text begin 16,290,000 deleted text end new text begin 15,601,000 new text end ..... 2008
$ deleted text begin 16,620,000 deleted text end new text begin 16,608,000 new text end ..... 2009

The 2008 appropriation includes deleted text begin $1,606,000deleted text end new text begin $1,214,000new text end for 2007 and deleted text begin $14,684,000deleted text end new text begin $14,387,000new text end for 2008.

The 2009 appropriation includes deleted text begin $1,631,000deleted text end new text begin $1,598,000new text end for 2008 and deleted text begin $14,989,000deleted text end new text begin $15,010,000new text end for 2009.

Sec. 7.

Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:

Subd. 8.

Nonpublic pupil transportation.

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

$ deleted text begin 21,551,000 deleted text end new text begin 20,755,000 new text end ..... 2008
$ deleted text begin 21,392,000 deleted text end new text begin 21,007,000 new text end ..... 2009

The 2008 appropriation includes $2,124,000 for 2007 and deleted text begin $19,427,000deleted text end new text begin $18,631,000new text end for 2008.

The 2009 appropriation includes deleted text begin $2,158,000deleted text end new text begin $2,070,000new text end for 2008 and deleted text begin $19,234,000deleted text end new text begin $18,937,000new text end for 2009.

B. EDUCATION EXCELLENCE

Sec. 8.

Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:

Subd. 2.

Charter school building lease aid.

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

$ deleted text begin 31,875,000 deleted text end new text begin 32,817,000 new text end ..... 2008
$ deleted text begin 36,193,000 deleted text end new text begin 37,527,000 new text end ..... 2009

The 2008 appropriation includes $2,814,000 for 2007 and deleted text begin $29,061,000deleted text end new text begin $30,003,000new text end for 2008.

The 2009 appropriation includes deleted text begin $3,229,000deleted text end new text begin $3,333,000new text end for 2008 and deleted text begin $32,964,000deleted text end new text begin $34,194,000new text end for 2009.

Sec. 9.

Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:

Subd. 3.

Charter school startup cost aid.

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

$ deleted text begin 1,896,000 deleted text end new text begin 1,801,000 new text end ..... 2008
$ deleted text begin 2,161,000 deleted text end new text begin 1,987,000 new text end ..... 2009

The 2008 appropriation includes deleted text begin $241,000deleted text end new text begin $239,000 new text end for 2007 and deleted text begin $1,655,000deleted text end new text begin $1,562,000new text end for 2008.

The 2009 appropriation includes deleted text begin $183,000deleted text end new text begin $173,000new text end for 2008 and deleted text begin $1,978,000deleted text end new text begin $1,814,000new text end for 2009.

Sec. 10.

Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to read:

Subd. 4.

Integration aid.

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

$ deleted text begin 61,769,000 deleted text end new text begin 59,036,000 new text end ..... 2008
$ deleted text begin 61,000,000 deleted text end new text begin 62,448,000 new text end ..... 2009

The 2008 appropriation includes $5,824,000 for 2007 and deleted text begin $55,945,000deleted text end new text begin $53,212,000new text end for 2008.

The 2009 appropriation includes deleted text begin $6,216,000deleted text end new text begin $5,912,000new text end for 2008 and deleted text begin $54,784,000deleted text end new text begin $56,536,000new text end for 2009.

Sec. 11.

Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to read:

Subd. 6.

Interdistrict desegregation or integration transportation grants.

For interdistrict desegregation or integration transportation grants under Minnesota Statutes, section 124D.87:

$ deleted text begin 9,639,000 deleted text end new text begin 9,901,000 new text end ..... 2008
$ deleted text begin 11,567,000 deleted text end new text begin 11,881,000 new text end ..... 2009

Sec. 12.

Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to read:

Subd. 9.

Tribal contract schools.

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

$ deleted text begin 2,238,000 deleted text end new text begin 2,207,000 new text end ..... 2008
$ deleted text begin 2,422,000 deleted text end new text begin 2,392,000 new text end ..... 2009

The 2008 appropriation includes $204,000 for 2007 and deleted text begin $2,034,000deleted text end new text begin $2,003,000new text end for 2008.

The 2009 appropriation includes deleted text begin $226,000deleted text end new text begin $222,000new text end for 2008 and deleted text begin $2,196,000deleted text end new text begin $2,170,000new text end for 2009.

C. SPECIAL PROGRAMS

Sec. 13.

Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to read:

Subd. 3.

Aid for children with disabilities.

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

$ deleted text begin 1,538,000 deleted text end new text begin 2,086,000 new text end ..... 2008
$ deleted text begin 1,729,000 deleted text end new text begin 2,282,000 new text end ..... 2009

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

Sec. 14.

Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to read:

Subd. 4.

Travel for home-based services.

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

$ deleted text begin 254,000 deleted text end new text begin 207,000 new text end ..... 2008
$ deleted text begin 284,000 deleted text end new text begin 227,000 new text end ..... 2009

The 2008 appropriation includes $22,000 for 2007 and deleted text begin $232,000deleted text end new text begin $185,000new text end for 2008.

The 2009 appropriation includes deleted text begin $25,000deleted text end new text begin $20,000new text end for 2008 and deleted text begin $259,000deleted text end new text begin $207,000new text end for 2009.

D. FACILITIES AND TECHNOLOGY

Sec. 15.

Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to read:

Subd. 2.

Health and safety revenue.

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

$ deleted text begin 190,000 deleted text end new text begin 254,000 new text end ..... 2008
$ deleted text begin 179,000 deleted text end new text begin 103,000 new text end ..... 2009

The 2008 appropriation includes $20,000 for 2007 and deleted text begin $170,000deleted text end new text begin $234,000new text end for 2008.

The 2009 appropriation includes deleted text begin $18,000deleted text end new text begin $26,000new text end for 2008 and deleted text begin $161,000deleted text end new text begin $77,000new text end for 2009.

Sec. 16.

Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to read:

Subd. 3.

Debt service equalization.

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

$ deleted text begin 14,813,000 deleted text end new text begin 14,814,000 new text end ..... 2008
$ deleted text begin 11,124,000 deleted text end new text begin 9,109,000 new text end ..... 2009

The 2008 appropriation includes deleted text begin $1,767,000deleted text end new text begin $1,766,000new text end for 2007 and deleted text begin $13,046,000deleted text end new text begin $13,048,000new text end for 2008.

The 2009 appropriation includes deleted text begin $1,450,000deleted text end new text begin $1,449,000new text end for 2008 and deleted text begin $9,674,000deleted text end new text begin $7,660,000new text end for 2009.

Sec. 17.

Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to read:

Subd. 6.

Deferred maintenance aid.

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

$ deleted text begin 3,290,000 deleted text end new text begin 3,232,000 new text end ..... 2008
$ deleted text begin 2,667,000 deleted text end new text begin 2,627,000 new text end ..... 2009

The 2008 appropriation includes $0 for 2007 and deleted text begin $3,290,000deleted text end new text begin $3,232,000new text end for 2008.

The 2009 appropriation includes deleted text begin $365,000deleted text end new text begin $359,000new text end for 2008 and deleted text begin $2,302,000deleted text end new text begin $2,268,000new text end for 2009.

Sec. 18.

Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to read:

Subd. 8.

School technology and operating capital aid grants.

For school technology and operating capital grants under section 11:

$ deleted text begin 38,145,000 deleted text end new text begin 38,236,000 new text end ..... 2008
$ deleted text begin 52,676,000 deleted text end new text begin 52,454,000 new text end ..... 2009

This is a onetime appropriation.

E. NUTRITION AND ACCOUNTING

Sec. 19.

Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to read:

Subd. 2.

School lunch.

For school lunch aid according to Minnesota Statutes, section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

$ deleted text begin 12,022,000 deleted text end new text begin 12,094,000 new text end ..... 2008
$ deleted text begin 12,166,000 deleted text end new text begin 12,394,000 new text end ..... 2009

Sec. 20.

Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to read:

Subd. 4.

Summer food service replacement aid.

For summer food service replacement aid under Minnesota Statutes, section 124D.119:

$ deleted text begin 150,000 deleted text end new text begin 127,000 new text end ..... 2008
$ 150,000 ..... 2009

F. EARLY CHILDHOOD AND ADULT PROGRAMS

Sec. 21.

Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to read:

Subd. 2.

Early childhood family education aid.

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

$ deleted text begin 21,106,000 deleted text end new text begin 21,092,000 new text end ..... 2008
$ deleted text begin 29,601,000 deleted text end new text begin 29,324,000 new text end ..... 2009

The 2008 appropriation includes $1,796,000 for 2007 and deleted text begin $19,310,000deleted text end new text begin $19,296,000new text end for 2008.

The 2009 appropriation includes deleted text begin $2,145,000deleted text end new text begin $2,144,000new text end for 2008 and deleted text begin $27,456,000deleted text end new text begin $27,180,000new text end for 2009.

Sec. 22.

Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to read:

Subd. 3.

School readiness.

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

$ deleted text begin 9,995,000 deleted text end new text begin 9,987,000 new text end ..... 2008
$ 10,095,000 ..... 2009

The 2008 appropriation includes deleted text begin $909,000deleted text end new text begin $901,000new text end for 2007 and $9,086,000 for 2008.

The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.

Sec. 23.

Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to read:

Subd. 8.

Community education aid.

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

$ deleted text begin 1,307,000 deleted text end new text begin 1,299,000 new text end ..... 2008
$ deleted text begin 816,000 deleted text end new text begin 796,000 new text end ..... 2009

The 2008 appropriation includes $195,000 for 2007 and deleted text begin $1,112,000deleted text end new text begin $1,104,000new text end for 2008.

The 2009 appropriation includes deleted text begin $123,000deleted text end new text begin $122,000new text end for 2008 and deleted text begin $693,000deleted text end new text begin $674,000new text end for 2009.

Sec. 24.

Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to read:

Subd. 9.

Adults with disabilities program aid.

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

$ deleted text begin 710,000 deleted text end new text begin 709,000 new text end ..... 2008
$ 710,000 ..... 2009

The 2008 appropriation includes deleted text begin $71,000deleted text end new text begin $70,000new text end for 2007 and $639,000 for 2008.

The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.

School districts operating existing adults with disabilities programs that are not fully funded shall receive full funding for the program beginning in fiscal year 2008 before the commissioner awards grants to other districts.

Sec. 25.

Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to read:

Subd. 13.

Adult basic education aid.

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

$ deleted text begin 40,347,000 deleted text end new text begin 40,344,000 new text end ..... 2008
$ deleted text begin 41,745,000 deleted text end new text begin 41,712,000 new text end ..... 2009

The 2008 appropriation includes $3,759,000 for 2007 and deleted text begin $36,588,000deleted text end new text begin $36,585,000new text end for 2008.

The 2009 appropriation includes $4,065,000 for 2008 and deleted text begin $37,680,000deleted text end new text begin $37,647,000new text end for 2009.

ARTICLE 4

HIGHER EDUCATION

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations from the general fund made in this article. new text end

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin Minnesota Office of Higher Education new text end new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin (1,381,000) new text end new text begin $ new text end new text begin (1,381,000) new text end
new text begin Board of Trustees of the Minnesota State Colleges and Universities new text end new text begin (1,000,000) new text end new text begin (6,880,000) new text end new text begin (7,880,000) new text end
new text begin Board of Regents of the University of Minnesota new text end new text begin (6,150,000) new text end new text begin (6,150,000) new text end new text begin (12,300,000) new text end
new text begin Total new text end new text begin $ new text end new text begin (7,150,000) new text end new text begin $ new text end new text begin (14,411,000) new text end new text begin $ new text end new text begin (21,561,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2007, chapter 144, article 1, to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2008" and "2009" used in this article mean that the addition to or subtraction from the appropriations listed under them are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day following final enactment. "The first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2008 new text end new text begin 2009 new text end

Sec. 3.

new text begin MINNESOTA OFFICE OF HIGHER EDUCATION new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin (1,381,000) new text end

new text begin The amounts that must be reduced for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Interstate Tuition Reciprocity new text end

new text begin -0- new text end new text begin (250,000) new text end

new text begin Subd. 3. new text end

new text begin Minnesota College Savings Plan new text end

new text begin -0- new text end new text begin (1,020,000) new text end

new text begin The budget base for the Minnesota college savings plan for fiscal year 2010 is $1,020,000. new text end

new text begin Subd. 4. new text end

new text begin Agency Administration new text end

new text begin -0- new text end new text begin (111,000) new text end

new text begin Subd. 5. new text end

new text begin Cancellation new text end

new text begin By June 30, 2009, the commissioner of finance shall cancel to the general fund $90,000 of the appropriation in Laws 2005, chapter 107, article 1, section 2, subdivision 12, to upgrade computer program application software related to state grant awards. new text end

new text begin Subd. 6. new text end

new text begin Transfers In new text end

new text begin The commissioner of finance must transfer $18,000 to the general fund from the technology carryforward account in the special revenue fund by June 30, 2008. new text end

new text begin The commissioner of finance must transfer $100,000 to the general fund from the private institutions regulation accounts in the special revenue fund by June 30, 2009. new text end

Sec. 4.

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

new text begin Subdivision 1. new text end

new text begin Total new text end new text begin Appropriation new text end

new text begin $ new text end new text begin (1,000,000) new text end new text begin $ new text end new text begin (6,880,000) new text end

new text begin The amounts that must be reduced or added for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin General Reduction new text end

new text begin (1,000,000) new text end new text begin (7,600,000) new text end

new text begin Of this reduction, $5,000,000 is from the appropriations for technology and $1,000,000 is from the central reserves. The remainder is from the Office of the Chancellor budget. new text end

new text begin The reductions in this subdivision must not result in reductions to any of the campuses of the Minnesota State Colleges and Universities, must not reduce the technology expenditures or grants to the campuses, and must not increase any assessments to the campuses from the Office of the Chancellor. new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities must reallocate $9,000,000 of state appropriations to reduce student tuition increases to two percent at state colleges and three percent at state universities and must not increase student fees beyond the amount that is currently planned for the next academic year. new text end

new text begin The legislature intends that by reducing tuition increases, the student's share of educational costs are decreased and the state's share of educational costs are increased, consistent with the funding policy in Minnesota Statutes, section 135A.01. The legislature's goal is to begin progress over the next eight years to achieve a two-thirds state share of educational costs and a one-third student share as specified in Minnesota Statutes, section 135A.01. new text end

new text begin From the appropriation in Laws 2007, chapter 144, article 1, section 4, subdivision 1, the Board of Trustees shall allocate funding to campuses that lost revenue as a result of the decision in this law to eliminate nonresident undergraduate tuition at specified campuses. new text end

new text begin Subd. 3. new text end

new text begin Power of You Program new text end

new text begin -0- new text end new text begin 600,000 new text end

new text begin This appropriation is for the continuation of the power of you program at Metropolitan State University, Minneapolis Community and Technical College, and St. Paul College under Minnesota Statutes, section 136F.19. new text end

new text begin The board of trustees shall allocate the power of you funds to Metropolitan State University, Minneapolis Community and Technical College, and St. Paul College. new text end

new text begin The funds must be used for financial aid for eligible students. This appropriation is available to the extent it is matched with an equal amount of nonstate money. new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 4. new text end

new text begin Teachers of Diverse Backgrounds Financial Aid Pilot Program new text end

new text begin -0- new text end new text begin 120,000 new text end

new text begin For a teachers of diverse backgrounds financial aid pilot program, to be implemented by (1) Winona State University in partnership with the Rochester school district and (2) St. Cloud State University in partnership with the Robbinsdale school district, to increase the diversity of teachers in school districts with a significant concentration of minority students and attain the state's interest in enhancing the academic achievement of diverse student populations. new text end

new text begin A student is eligible to receive a grant under this subdivision if the student has a demonstrated interest and knowledge of diverse cultures. A preference must be given to a student whose parents did not attend college. new text end

new text begin Grants shall be made to eligible students for the student's junior and senior years in a teacher preparation program. Priority shall be given to students who are eligible for a Pell grant or a state grant under Minnesota Statutes, section 136A.121. Applications must be submitted in the form and manner and with the information required by Winona State University and St. Cloud State University. new text end

new text begin Within the limits of the appropriation, a student may receive a grant of up to $5,000 each year for a maximum of two academic years or the equivalent if the student continues to make satisfactory progress, as defined by the institution, toward a baccalaureate degree in education. new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 5. new text end

new text begin System Base Reduced new text end

new text begin The system base is reduced by $7,700,000 each year in fiscal years 2010 and 2011. new text end

Sec. 5.

new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin (6,150,000) new text end new text begin $ new text end new text begin (6,150,000) new text end

new text begin The amounts that must be reduced or added for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin General Reduction new text end

new text begin (6,150,000) new text end new text begin (6,150,000) new text end

new text begin Subd. 3. new text end

new text begin Restriction on Tuition Increase new text end

new text begin The Board of Regents must not increase student tuition or fees beyond the amount currently planned for the 2008-2009 academic year. new text end

new text begin Subd. 4. new text end

new text begin System Base Reduced new text end

new text begin The system base is reduced by $8,700,000 in fiscal year 2010 and $8,700,000 in fiscal year 2011. new text end

Sec. 6.

Minnesota Statutes 2006, section 136A.101, subdivision 8, is amended to read:

Subd. 8.

Resident student.

"Resident student" means a student who meets one of the following conditions:

(1) a student who has resided in Minnesota for purposes other than postsecondary education for at least 12 months without being enrolled at a postsecondary educational institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the time the student applies;

(3) a student who graduated from a Minnesota high school, if the student was a resident of Minnesota during the student's period of attendance at the Minnesota high school and the student is physically attending a Minnesota postsecondary educational institution;

(4) a student who, after residing in the state for a minimum of one year, earned a high school equivalency certificate in Minnesota;

(5) a member, spouse, or dependent of a member of the armed forces of the United States stationed in Minnesota on active federal military service as defined in section 190.05, subdivision 5c;

(6) new text begin a spouse or dependent of a veteran, as defined in section 197.447, if the veteran is a Minnesota resident;new text end

new text begin (7) new text end a person or spouse of a person who relocated to Minnesota from an area that is declared a presidential disaster area within the preceding 12 months if the disaster interrupted the person's postsecondary education; or

deleted text begin (7)deleted text end new text begin (8)new text end a person defined as a refugee under United States Code, title 8, section 1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has continued to reside in Minnesota.

Sec. 7.

Minnesota Statutes 2007 Supplement, section 136A.121, subdivision 7a, is amended to read:

Subd. 7a.

Surplus appropriation.

If the amount appropriated is determined by the office to be more than sufficient to fund projected grant demand in the second year of the biennium, the office may increase the living and miscellaneous expense allowance in the second year of the biennium by up to an amount that retains sufficient appropriations to fund the projected grant demand. The adjustment may be made one or more times. In making the determination that there are more than sufficient funds, the office shall balance the need for sufficient resources to meet the projected demand for grants with the goal of fully allocating the appropriation for state grants. An increase in the living and miscellaneous expense allowance under this subdivision does not carry forward into a subsequent biennium. deleted text begin This subdivision expires June 30, 2009.deleted text end

Sec. 8.

new text begin [136F.19] POWER OF YOU PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The board shall establish and operate through each campus a power of you program at Metropolitan State University, Minneapolis Community and Technical College, and St. Paul College. The program shall, to the extent of available funding, make grants to eligible students. Each campus shall develop partnerships with high schools and school districts as part of the program. The board may accept and expend private funding for the program. new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin A campus shall establish procedures to select recipients of grants. A grant award shall be equal to the amount remaining after deducting the student's Pell grant award and state grant award from the institution's tuition and mandatory fee charges. new text end

new text begin Subd. 3. new text end

new text begin Eligible students. new text end

new text begin A student is eligible to receive a grant under this section if the student: new text end

new text begin (1) is a graduate from a public Minneapolis or St. Paul high school; new text end

new text begin (2) is enrolled full time immediately after graduation; new text end

new text begin (3) was a participant in a power of you program as a high school student; and new text end

new text begin (4) is eligible for a Pell grant or a state grant under section 136A.121. new text end

new text begin Subd. 4. new text end

new text begin Information. new text end

new text begin The institutions implementing the power of you program shall disseminate information to all MnSCU institutions about their experience in implementing the program. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2006, section 136G.11, subdivision 1, is amended to read:

Subdivision 1.

Matching grant qualification.

By deleted text begin June 30deleted text end new text begin July 1 new text end of each year, a state matching grant must be added to each account established under the program if the following conditions are met:

(1) the contributor applies, in writing in a form prescribed by the director, for a matching grant;

(2) a minimum contribution of $200 was made during the preceding calendar year;

(3) the beneficiary's family meets Minnesota college savings plan residency requirements; and

(4) the family income of the beneficiary did not exceed $80,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008, for payments due July 1, 2009, and thereafter. new text end

Sec. 10.

Minnesota Statutes 2006, section 299A.45, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

deleted text begin Following certification deleted text end new text begin A person is eligible to receive educational benefits under this section if the person: new text end

new text begin (1) is certifiednew text end under section 299A.44 and new text begin in new text end compliance with this section and rules of the commissioner of public safety and the Minnesota Office of Higher Educationdeleted text begin ,deleted text end new text begin ;new text end

new text begin (2) is enrolled in an undergraduate degree or certificate program after June 30, 1990, at an eligible Minnesota institution as provided in section 136A.101, subdivision 4; new text end

new text begin (3) has not received a baccalaureate degree or been enrolled full time for ten semesters or the equivalent, except that a student who withdraws from enrollment for active military service is entitled to an additional semester or the equivalent of eligibility; and new text end

new text begin (4) is related in one of the following ways to a public safety officer killed in the line of duty on or after January 1, 1973: new text end

new text begin (i) as anew text end dependent deleted text begin childrendeleted text end new text begin childnew text end less than 23 years of age deleted text begin and thedeleted text end new text begin ;new text end

new text begin (ii) as anew text end surviving spouse deleted text begin of a public safety officer killed in the line of duty on or after January 1, 1973, are eligible to receive educational benefits under this section. To qualify for an award, they must be enrolled in undergraduate degree or certificate programs after June 30, 1990, at an eligible Minnesota institution as provided in section 136A.101, subdivision 4. A student who withdraws from enrollment for active military service is entitled to an additional semester or the equivalent of grant eligibility. Persons who have received a baccalaureate degree or have been enrolled full time or the equivalent of ten semesters or the equivalent, whichever occurs first, are no longer eligible.deleted text end new text begin ; ornew text end

new text begin (iii) as a dependent child less than 30 years of age who has served on active military duty 181 consecutive days or more and has been honorably discharged or released to the dependent child's reserve or National Guard unit. new text end

Sec. 11.

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

Subd. 2.

State Grants

147,400,000 144,138,000

If the appropriation in this subdivision for either year is insufficient, the appropriation for the other year is available for it.

For the biennium, the tuition maximum for students in four-year programs is $9,838 in each year for students in four-year programs, and for students in two-year programs, is $6,114 in the first year and $5,808 in the second year.

This appropriation sets the living and miscellaneous expense allowance at $5,900 deleted text begin eachdeleted text end new text begin the first year and $6,200 the secondnew text end year.

Sec. 12.

Laws 2007, chapter 144, article 1, section 5, subdivision 5, is amended to read:

Subd. 5.

University of Minnesota and Mayo Foundation Partnership

25,000,000 -0-

For the direct and indirect expenses of the collaborative research partnership between the University of Minnesota and the Mayo Foundation for research in biotechnology and medical genomics. For fiscal years 2010 and 2011, the base shall be $8,000,000 in each year. This appropriation is available until expended. An annual report on the expenditure of these funds must be submitted to the governornew text begin , the chair of the house bioscience and emerging technologies committee,new text end and the chairs of the senate and house committees responsible for higher education and economic development by June 30 of each fiscal year. new text begin At a minimum, the report must include information on the number of patents, disclosures, and licensing agreements; the amount generated in royalties and how the royalty money is spent; and the number of companies created, where they are located, how many jobs are created, and the amount of venture capital raised.new text end

ARTICLE 5

ENVIRONMENT AND NATURAL RESOURCES

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

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

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin (328,000) new text end new text begin $ new text end new text begin (2,728,000) new text end new text begin $ new text end new text begin (3,056,000) new text end
new text begin Environmental new text end new text begin -0- new text end new text begin 134,000 new text end new text begin 134,000 new text end
new text begin Natural Resources new text end new text begin 50,000 new text end new text begin 2,523,000 new text end new text begin 2,573,000 new text end
new text begin Game and Fish new text end new text begin 123,000 new text end new text begin 631,000 new text end new text begin 754,000 new text end
new text begin Total new text end new text begin $ new text end new text begin (155,000) new text end new text begin $ new text end new text begin 560,000 new text end new text begin $ new text end new text begin 405,000 new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2007, chapter 57, article 1, to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2008" and "2009" used in this article mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2008 new text end new text begin 2009 new text end

Sec. 3.

new text begin POLLUTION CONTROL AGENCY new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin (469,000) new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin (603,000) new text end
new text begin Environmental Fund new text end new text begin -0- new text end new text begin 134,000 new text end

new text begin $623,000 is a reduction in 2009. The commissioner shall make the reduction to administrative activities in a way to minimize the effect to program operations. new text end

new text begin $134,000 in 2009 is appropriated from the environmental fund for the development and adoption of rules to regulate emission standards of motor vehicles sold in this state as authorized under the federal Clean Air Act, United States Code, title 42, section 7507. The base for fiscal years 2010 and 2011 is $114,000.new text end * (The preceding text beginning "$134,000 in 2009 is appropriated" was indicated as vetoed by the governor.)

new text begin $20,000 in 2009 is appropriated from the general fund for the following purposes: new text end

new text begin (1) the development of recommendations for establishing a comprehensive product stewardship approach to reducing environmental and health risks posed by the use or disposal of products. These recommendations shall be submitted to the chairs and ranking minority members of the senate and house committees with jurisdiction over environmental policy and environmental finance by January 15, 2009. The recommendations shall include, at a minimum: a set of criteria to be used to evaluate products proposed for product stewardship solutions; a process for designating products for product stewardship solutions and the role the legislature would play in that process; typical components of product stewardship plans; options to facilitate the creation of industry-managed stewardship management organizations; methods to identify and monitor progress toward stewardship performance goals for specific products; and strategies to implement the use of standards, certifications, and eco-labels to promote environmentally preferable products. To the extent possible, the recommendations must be consistent with existing product stewardship programs in North America. In developing the recommendations, the commissioner must consult with manufacturers, retailers, recyclers, environmental advocacy organizations, local units of government, and other interested parties; new text end

new text begin (2) a report to be submitted by December 1, 2008, to the chairs and ranking minority members of the senate and house committees with primary jurisdiction over solid waste policy, analyzing the availability of collection and processing capacity in the seven-county metropolitan area for the recycling of construction and demolition waste. The report must recommend a percentage of the total weight of construction and demolition waste generated in the seven-county metropolitan area that represents an achievable but aggressive recycling goal that can be reached in 2012 and must include an analysis of the economic and environmental costs and benefits of reaching that goal; and new text end

new text begin (3) a report to be submitted by January 1, 2009, to the chairs and ranking minority members of the senate and house committees with primary jurisdiction over solid waste policy, that recommends options for achieving the following goals by 2020: an increase in county recycling rates to 60 percent of the weight of total solid waste generation; and the diversion, prior to delivery to landfills and waste-to-energy plants, and recycling and reuse of an amount of source-separated compostable materials equal to 15 percent of total solid waste generation. The commissioner must obtain input from counties inside and outside the seven-county metropolitan area, recycling and composting facilities, waste haulers, environmental organizations, and other interested parties in preparing the report. The report must also contain estimates of the economic costs of implementing the strategies. This is a onetime appropriation. new text end

Sec. 4.

new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin (155,000) new text end new text begin $ new text end new text begin 594,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin (328,000) new text end new text begin (2,260,000) new text end
new text begin Natural Resources new text end new text begin 50,000 new text end new text begin 2,223,000 new text end
new text begin Game and Fish new text end new text begin 123,000 new text end new text begin 631,000 new text end

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

new text begin Subd. 2. new text end

new text begin Lands and Minerals new text end

new text begin -0- new text end new text begin (225,000) new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin (425,000) new text end
new text begin Natural Resources new text end new text begin -0- new text end new text begin 200,000 new text end

new text begin $200,000 in 2009 is a general reduction in lands and minerals administration. new text end

new text begin $124,000 in 2009 is a reduction from the appropriation for iron ore cooperative agreements. new text end

new text begin $101,000 in 2009 is a reduction from the appropriation for minerals diversification. new text end

new text begin $200,000 in 2009 is appropriated from the natural resources fund for the administration and monitoring of permits to mine ferrous metals under Minnesota Statutes, section 93.481. By January 15, 2009, the commissioner shall report to the legislature and the chairs of the senate and house committees with jurisdiction over environment and natural resources finance on the establishment of a permit to mine application fee schedule that is based on the actual costs of issuing and monitoring individual permits and any necessary legislation needed to cover the costs of issuing and monitoring the permits for the next biennium. new text end

new text begin Subd. 3. new text end

new text begin Water Resource Management new text end

new text begin (98,000) new text end new text begin 10,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin (98,000) new text end new text begin (90,000) new text end
new text begin Natural Resources new text end new text begin -0- new text end new text begin 100,000 new text end

new text begin $38,000 is a reduction in 2009 attributable to the modification of reporting requirements under Minnesota Statutes, section 103A.43. new text end

new text begin By January 15, 2009, the Mississippi Headwaters Board, established under Minnesota Statutes, section 103F.367, shall submit a report to the chairs of the senate and house committees and divisions with jurisdiction over the environment and natural resources on how the board will meet its responsibility to protect and enhance the Mississippi River and related shoreland as required by Minnesota Statutes, section 103F.367. In preparing the report, the Mississippi Headwaters Board shall hold two public input meetings in the area. new text end

new text begin $100,000 in 2009 is from the water recreation account in the natural resources fund for rulemaking on structures in public waters. This is a onetime appropriation. new text end

new text begin $22,000 in 2009 is a reduction from the appropriation for ring dikes under Minnesota Statutes, section 103F.161. new text end

new text begin $30,000 is a reduction in 2009 from the appropriation for grants associated with the implementation of the Red River mediation agreement. new text end

new text begin $98,000 is a reduction in 2008 from a onetime appropriation for impaired waters. new text end

new text begin Subd. 4. new text end

new text begin Forest Management new text end

new text begin -0- new text end new text begin 250,000 new text end

new text begin $53,000 in 2009 is for the Forest Resources Council to conduct a study of options and make recommendations to the legislature for addressing the fragmentation and parcelization of large blocks of private forest land in the state. This is a onetime appropriation. new text end

new text begin $197,000 in 2009 is for a grant to the University of Minnesota for the Interagency Information Cooperative to develop a common forest inventory format describing key attributes of Minnesota's public forest land base, growth models for managed forest stands, a forest wildlife habitat model format, and an information database on the state's family forest ownership. new text end

new text begin Subd. 5. new text end

new text begin Parks and Recreation Management new text end

new text begin 50,000 new text end new text begin -0- new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin (220,000) new text end
new text begin Natural Resources new text end new text begin 50,000 new text end new text begin 220,000 new text end

new text begin $220,000 in 2009 is a reduction for parks and recreation management. new text end

new text begin $220,000 in 2009 is from the state parks account in the natural resources fund to fund state park operations, maintenance, resource management, educational services, and associated support costs. new text end

new text begin $50,000 in 2008 from the natural resources fund is for grants to local units of government for up to 75 percent of the cost of meeting the equipment requirements for public pools under Minnesota Statutes, section 144.1222, subdivision 1d, paragraph (a), if enacted. The maximum grant is $10,000 per pool upgraded. Priority shall be given to local government applicants seeking assistance in installing a secondary suction or drainage outlet for the public pool where a fee is not charged for use of the pool. The commissioner shall consult with the commissioner of health in awarding the grants. Of this amount, notwithstanding the restrictions under Minnesota Statutes, section 297A.94, $25,000 is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (3), and $25,000 is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (4). This is a onetime appropriation and is available until June 30, 2009. new text end

new text begin Subd. 6. new text end

new text begin Trails and Waterways Management new text end

new text begin -0- new text end new text begin 1,085,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin (50,000) new text end
new text begin Natural Resources new text end new text begin -0- new text end new text begin 1,135,000 new text end

new text begin Beginning in 2009, $300,000 each year is from the all-terrain vehicle account in the natural resources fund for monitoring and maintenance of newly designated trails. new text end

new text begin $700,000 in 2009 is from the natural resources fund for the development of the Virginia site and connecting trails for the Iron Range Off-Highway Vehicle Recreation Area. Of this amount, $400,000 is from the all-terrain vehicle account, $75,000 is from the off-highway motorcycle account, $125,000 is from the off-road vehicle account, and $100,000 is from the snowmobile trails and enforcement account. $300,000 is from federal money allocated for motorized recreation. This is a onetime appropriation. The appropriation is available until expended for the design and development of an underpass for off-highway vehicles on Highway 135 in the city of Gilbert. None of these funds may be expended until all property as identified in the master plan has been acquired. This is a onetime appropriation. new text end

new text begin $100,000 in 2009 is from the all-terrain vehicle account in the natural resources fund for a grant to the city of Hoyt Lakes to convert the Moose Trail snowmobile trail to a dual usage trail, so that it may also be used as an Off-Highway Vehicle trail connecting the city of Biwabik to the Iron Range Off-Highway Vehicle Recreation Area. This is a onetime appropriation. new text end

new text begin $50,000 in 2009 is a reduction from the appropriation for nonmotorized trails. new text end

new text begin $35,000 in 2009 is from the all-terrain vehicle account in the natural resources fund for all-terrain vehicle grants-in-aid. new text end

new text begin Subd. 7. new text end

new text begin Fish and Wildlife Management new text end

new text begin 123,000 new text end new text begin 119,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin (427,000) new text end
new text begin Game and Fish new text end new text begin 123,000 new text end new text begin 546,000 new text end

new text begin $329,000 in 2009 is a reduction for fish and wildlife management. new text end

new text begin $46,000 in 2009 is a reduction in the appropriation for the Minnesota Shooting Sports Education Center. new text end

new text begin $52,000 in 2009 is a reduction for licensing. new text end

new text begin $123,000 in 2008 and $246,000 in 2009 are from the game and fish fund to implement fish virus surveillance, prepare infrastructure to handle possible outbreaks, and implement control procedures for highest risk waters and fish production operations. This is a onetime appropriation. new text end

new text begin Notwithstanding Minnesota Statutes, section 297A.94, paragraph (e), $300,000 in 2009 is from the second year appropriation in Laws 2007, chapter 57, article 1, section 4, subdivision 7, from the heritage enhancement account in the game and fish fund to study, predesign, and design shooting sports facilities at the Vermillion Highlands Wildlife Management Area authorized by Laws 2007, chapter 57, article 1, section 168. This is available onetime only and is available until expended. new text end

new text begin $300,000 in 2009 is appropriated from the game and fish fund for only activities that improve, enhance, or protect fish and wildlife resources. This is a onetime appropriation. new text end

new text begin Subd. 8. new text end

new text begin Ecological Services new text end

new text begin (230,000) new text end new text begin -0- new text end

new text begin $230,000 in 2008 is a reduction from the appropriation for impaired waters. new text end

new text begin By June 30, 2008, the commissioner of finance shall transfer $594,000 from the water recreation account in the natural resources fund to the invasive species account in the natural resources fund for invasive species-related expenses. new text end

new text begin Subd. 9. new text end

new text begin Enforcement new text end

new text begin -0- new text end new text begin 110,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin (543,000) new text end
new text begin Natural Resources new text end new text begin -0- new text end new text begin 568,000 new text end
new text begin Game and Fish new text end new text begin -0- new text end new text begin 85,000 new text end

new text begin $543,000 in 2009 is a reduction in enforcement operations. $75,000 of this reduction is for conservation officer recruiting and $85,000 of this reduction is for advanced hunter education. new text end

new text begin $383,000 in 2009 is from the water recreation account in the natural resources fund for enforcement operations. new text end

new text begin $185,000 in 2009 is from the all-terrain vehicle account in the natural resources fund for grants to county law enforcement agencies for all-terrain vehicle enforcement and public education activities based on all-terrain vehicle use in the county. new text end

new text begin $85,000 in 2009 is from the game and fish fund for advanced hunter education. new text end

new text begin Subd. 10. new text end

new text begin Operations Support new text end

new text begin -0- new text end new text begin (755,000) new text end

new text begin $755,000 is a reduction to the department's administration costs in fiscal year 2009. The commissioner shall make these reductions throughout the agency through reduction in travel, administrative costs, and vacancy management. new text end

new text begin The department's administration base is reduced by $255,000 in fiscal years 2010 and 2011. new text end

Sec. 5.

new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 235,000 new text end

new text begin $200,000 in 2009 is a reduction from the appropriation for county cooperative weed management programs. new text end

new text begin $47,000 is a reduction in 2009 from the appropriation for cost-sharing contracts to establish native buffers. This is a onetime reduction. new text end

new text begin $68,000 in 2009 is a reduction from the appropriation for the drainage assistance program. new text end

new text begin $450,000 in 2009 is for implementing rehabilitation, erosion, and sediment control projects in the area included in DR-1717. Funds appropriated or transferred and waivers previously authorized to the board for DR-1717 flood relief and recovery as provided in Laws 2007, First Special Session chapter 2, are available and applicable until June 30, 2010. The board may use money from this appropriation to implement federal funding for projects in the area. The base for 2010 is $275,000 and the base for 2011 is $0. This appropriation is available until expended. new text end

new text begin $100,000 in 2009 is for a grant to the Star Lake Board established in new Minnesota Statutes, section 103B.702. The board may use up to ten percent of the appropriation for administration and initial meeting of the Star Lake Board. This is a onetime appropriation. new text end

new text begin To the extent possible prairie restorations paid for in whole or in part by appropriations to the board must be made using best management practices for native prairie restoration as defined in Minnesota Statutes, section 84.02, subdivision 2. new text end

Sec. 6.

new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 200,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin (100,000) new text end
new text begin Natural Resources new text end new text begin -0- new text end new text begin 300,000 new text end

new text begin $300,000 in fiscal year 2009 is reduced from money appropriated from the general fund for metropolitan area regional parks maintenance and operations under Laws 2007, chapter 57, article 1, section 6. This is a onetime reduction. new text end

new text begin $300,000 in fiscal year 2009 is appropriated from the natural resources fund for metropolitan area regional parks maintenance and operations. This is a onetime appropriation from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (3). new text end

new text begin $200,000 in 2009 is for a grant to the city of St. Paul. This appropriation is in addition to and for the same purposes as the appropriation for a grant to the city of St. Paul for Como Zoo in Laws 2006, chapter 258, section 17, subdivision 8. This is a onetime appropriation and is available until expended. new text end

Sec. 7.

new text begin TRANSFERS IN new text end

new text begin new text end new text begin new text end new text begin new text end new text begin new text end

new text begin By June 30, 2009, the commissioner of finance shall transfer any remaining unappropriated balance, estimated to be $103,000, from the Minnesota future resources fund to the general fund. new text end

new text begin By June 30, 2008, the commissioner of finance shall transfer $1,400,000 from the balance in the stream protection and improvement fund to the general fund. new text end

Sec. 8.

Minnesota Statutes 2006, section 17.4988, subdivision 2, is amended to read:

Subd. 2.

Aquatic farming license.

(a) The annual fee for an aquatic farming license is $210new text begin for the base licensenew text end .new text begin The commissioner must establish an additional fee based on the acreage of the operation.new text end

(b) The aquatic farming license may contain endorsements for the rights and privileges of the following licenses under the game and fish laws. The endorsement must be made upon payment of the license fee prescribed in section 97A.475 for the following licenses:

(1) minnow dealer license;

(2) minnow retailer license for sale of minnows as bait;

(3) minnow exporting license;

(4) aquatic farm vehicle endorsement, which includes a minnow dealer vehicle license, a minnow retailer vehicle license, an exporting minnow vehicle license, and a fish vendor license;

(5) sucker egg taking license; and

(6) game fish packers license.

Sec. 9.

Minnesota Statutes 2006, section 17.4988, subdivision 3, is amended to read:

Subd. 3.

Inspection fees.

deleted text begin The fees for the following inspections are: deleted text end new text begin The commissioner may, by written order published in the State Register, establish fees for the services listed in clauses (1) to (3). The fees must be set in an amount that does not recover significantly more or less than the cost of providing the service. The fees are not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply. The services covered under this provision include: new text end

(1) initial inspection of each water to be licenseddeleted text begin , $50deleted text end ;

(2) fish health inspection and certification, deleted text begin $60 plus $150 per lot thereafterdeleted text end new text begin including initial tissue sample collection, basic fish health assessment, viral pathogen testing, and bacteriological testingnew text end ; and

(3) initial inspection for containment and quarantine facility inspectionsdeleted text begin , $100deleted text end .

Sec. 10.

new text begin [85.53] PARKS AND TRAILS FUND. new text end

new text begin The parks and trails fund is established in the Minnesota Constitution, article XI, section 15. All money earned by the parks and trails fund must be credited to the fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional amendment proposed in Laws 2008, chapter 151, is adopted by the voters. new text end

Sec. 11.

Minnesota Statutes 2006, section 93.481, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Mining administration account. new text end

new text begin The mining administration account is established as an account in the natural resources fund. Ferrous mining administrative fees charged to owners, operators, or managers of mines shall be credited to the account and may be appropriated to the commissioner to cover the costs of providing and monitoring permits to mine ferrous metals under this section. new text end

Sec. 12.

new text begin [94.3495] EXPEDITED EXCHANGES OF LAND INVOLVING THE STATE AND GOVERNMENTAL SUBDIVISIONS OF THE STATE. new text end

new text begin Subdivision 1. new text end

new text begin Purpose and scope. new text end

new text begin (a) The purpose of this section is to expedite the exchange of public land ownership. Consolidation of public land reduces management costs and aids in the reduction of forest fragmentation. new text end

new text begin (b) This section applies to exchanges of land between the state and a governmental subdivision of the state. For land exchanges under this section, sections 94.342 to 94.347 apply only to the extent specified in this section. new text end

new text begin Subd. 2. new text end

new text begin Classes of land; definitions. new text end

new text begin The classes of public land that may be involved in an expedited exchange under this section are: new text end

new text begin (1) Class 1 land, which for the purpose of this section is Class A land as defined in section 94.342, subdivision 1, except for: new text end

new text begin (i) school trust land as defined in section 92.025; and new text end

new text begin (ii) university land granted to the state by acts of Congress; new text end

new text begin (2) Class 2 land, which for the purpose of this section is Class B land as defined in section 94.342, subdivision 2; and new text end

new text begin (3) Class 3 land, which for the purpose of this section is all land owned in fee by a governmental subdivision of the state. new text end

new text begin Subd. 3. new text end

new text begin Valuation of land. new text end

new text begin (a) In an exchange of Class 1 land for Class 2 or 3 land, the value of all the land shall be determined by the commissioner of natural resources. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined by the county board of the county in which the land lies. To determine the value of the land, the parties to the exchange may cause the land to be appraised, utilize the valuation process provided under section 84.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker. Merchantable timber value must be determined and considered in finalizing valuation of the lands. new text end

new text begin (b) All lands exchanged under this section shall be exchanged only for lands of at least substantially equal value. For the purposes of this subdivision, "substantially equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the lands are of substantially equal value but are not of the same value. new text end

new text begin Subd. 4. new text end

new text begin Title. new text end

new text begin Title to the land must be examined to the extent necessary for the parties to determine that the title is good, with any encumbrances identified. The parties to the exchange may utilize title insurance to aid in the determination. new text end

new text begin Subd. 5. new text end

new text begin Approval by Land Exchange Board. new text end

new text begin All expedited land exchanges under this section, and the terms and conditions of the exchanges, require the unanimous approval of the Land Exchange Board. new text end

new text begin Subd. 6. new text end

new text begin Conveyance. new text end

new text begin (a) Conveyance of Class 1 land given in exchange shall be made by deed executed by the commissioner of natural resources in the name of the state. Conveyance of Class 2 land given in exchange shall be by a deed executed by the commissioner of revenue in the name of the state. Conveyance of Class 3 land shall be by a deed executed by the governing body in the name of the governing authority. new text end

new text begin (b) If Class 1 land is given in exchange for Class 2 or 3 land, the deed to the Class 2 or 3 land shall first be delivered to the commissioner of natural resources. Following the recording of the deed, the commissioner of natural resources shall deliver the deed conveying the Class 1 land. new text end

new text begin (c) If Class 2 land is given in exchange for Class 3 land, the deed to the Class 3 land shall first be delivered to the county auditor. Following the recording of the deed, the commissioner of revenue shall deliver the deed conveying the Class 2 land. new text end

new text begin (d) All deeds shall be recorded or registered in the county in which the lands lie. new text end

new text begin Subd. 7. new text end

new text begin Reversionary interest; mineral and water power rights and other reservations. new text end

new text begin (a) All deeds conveying land given in an expedited land exchange under this section shall include a reverter that provides that title to the land automatically reverts to the conveying governmental unit if: new text end

new text begin (1) the receiving governmental unit sells, exchanges, or otherwise transfers title of the land within 40 years of the date of the deed conveying ownership; and new text end

new text begin (2) there is no prior written approval for the transfer from the conveying governmental unit. The authority for granting approval is the commissioner of natural resources for former Class 1 land, the county board for former Class 2 land, and the governing body for former Class 3 land. new text end

new text begin (b) Class 1 land given in exchange is subject to the reservation provisions of section 94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation provisions of section 94.344, subdivision 4. County fee land given in exchange is subject to the reservation provisions of section 373.01, subdivision 1, paragraph (g). new text end

new text begin Subd. 8. new text end

new text begin Land status. new text end

new text begin Land received in exchange for Class 1 land is subject to the same trust, if any, and otherwise has the same status as the land given in exchange. Land received in exchange for Class 2 land is subject to a trust in favor of the governmental subdivision wherein it lies and all laws relating to tax-forfeited land. Land received in exchange for Class 3 land has the same status as the land given in exchange. new text end

Sec. 13.

Minnesota Statutes 2006, section 97A.475, subdivision 29, is amended to read:

Subd. 29.

Private fish hatcheries.

The fees for the following licenses to be issued to residents and nonresidents are:

(1) for a private fish hatchery, with annual sales under $200, $70;

(2) for a private fish hatchery, with annual sales of $200 or more, $210new text begin for the base license. The commissioner must establish an additional fee based on the acreage of the operationnew text end ; and

(3) to take sucker eggs from public waters for a private fish hatchery, $400, plus $6 for each quart in excess of 100 quarts.

Sec. 14.

Minnesota Statutes 2006, section 103A.204, is amended to read:

103A.204 GROUNDWATER POLICY.

(a) The responsibility for the protection of groundwater in Minnesota is vested in a multiagency approach to management. The following is a list of agencies and the groundwater protection areas for which the agencies are primarily responsible; the list is not intended to restrict the areas of responsibility to only those specified:

(1) Environmental Quality Board: deleted text begin creation of a water resources committee to coordinatedeleted text end new text begin coordination ofnew text end state groundwater protection programs deleted text begin and a biennial groundwater policy report beginning in 1994 that includes, for the 1994 report, the findings in the groundwater protection report coordinated by the Pollution Control Agency for the Environmental Protection Agencydeleted text end ;

(2) Pollution Control Agency: water quality monitoring and reporting and the development of best management practices and regulatory mechanisms for protection of groundwater from nonagricultural chemical contaminants;

(3) Department of Agriculture: sustainable agriculture, integrated pest management, water quality monitoring, and the development of best management practices and regulatory mechanisms for protection of groundwater from agricultural chemical contaminants;

(4) Board of Water and Soil Resources: reporting on groundwater education and outreach with local government officials, local water planning and management, and local cost share programs;

(5) Department of Natural Resources: water quantity monitoring and regulation, sensitivity mapping, and development of a plan for the use of integrated pest management and sustainable agriculture on state-owned lands; and

(6) Department of Health: regulation of wells and borings, and the development of health risk limits under section 103H.201.

(b) The Environmental Quality Board shall deleted text begin through its Water Resources Committee coordinate with representatives of all agenciesdeleted text end new text begin prepare a report on policy issues related to its responsibilitiesnew text end listed in paragraph (a), deleted text begin citizens, and other interested groups to prepare a biennial report every even-numbered year as part of its duties described in sections 103A.43 and 103B.151deleted text end new text begin and include these reports with the assessments in section 103A.43 and the "Minnesota Water Plan" in section 103B.151new text end .

Sec. 15.

Minnesota Statutes 2006, section 103A.43, is amended to read:

103A.43 WATER ASSESSMENTS AND REPORTS.

(a) The Environmental Quality Board shall deleted text begin evaluate anddeleted text end new text begin consolidate the assessments required in paragraphs (b) and (c) with the policy report in section 103A.204 and submit a single new text end report to the house of representatives and senate committees with jurisdiction over the environment, natural resources, and agriculture and the Legislative-Citizen Commission on Minnesota Resources deleted text begin on statewide water research needs and recommended priorities for addressing these needs. Local water research needs may also be includeddeleted text end new text begin by September 15, 2010, and every five years thereafternew text end .

(b) The deleted text begin Environmental Quality Board shall work with thedeleted text end Pollution Control Agency and the Department of Agriculture deleted text begin to coordinatedeleted text end new text begin shall providenew text end a biennial assessment and analysis of water quality, groundwater degradation trends, and efforts to reduce, prevent, minimize, and eliminate degradation of water. The assessment and analysis must include an analysis of relevant monitoring data.

(c) The deleted text begin Environmental Quality Board shall work with thedeleted text end Department of Natural Resources deleted text begin to coordinatedeleted text end new text begin shall providenew text end an assessment and analysis of the quantity of surface and ground water in the state and the availability of water to meet the state's needs.

deleted text begin (d) The Environmental Quality Board shall coordinate and submit a report on water policy including the analyses in paragraphs (a) to (c) to the house of representatives and senate committees with jurisdiction over the environment, natural resources, and agriculture and the Legislative-Citizen Commission on Minnesota Resources by September 15 of each even-numbered year. The report may include the groundwater policy report in section 103A.204. deleted text end

Sec. 16.

Minnesota Statutes 2006, section 103B.151, subdivision 1, is amended to read:

Subdivision 1.

Water planning.

The Environmental Quality Board shall:

(1) coordinate public water resource management and regulation activities among the state agencies having jurisdiction in the area;

(2) deleted text begin initiate,deleted text end coordinatedeleted text begin , and continue to developdeleted text end comprehensive long-range water resources planning in furtherance of deleted text begin the plan prepared bydeleted text end the Environmental Quality Board's deleted text begin Water Resources Committee entitleddeleted text end "Minnesota Water Plan," published in January 1991, by September 15, 2000, and each ten-year interval afterwards;

(3) coordinate water planning activities of local, regional, and federal bodies with state water planning and integrate these plans with state strategies;

(4) coordinate development of state water policy recommendations and priorities, and a recommended program for funding identified needs, including priorities for implementing the state water resources monitoring plan;

(5) administer federal water resources planning with multiagency interests;

(6) ensure that groundwater quality monitoring and related data is provided and integrated into the Minnesota land management information system according to published data compatibility guidelines. Costs of integrating the data in accordance with data compatibility standards must be borne by the agency generating the data;

(7) coordinate the development and evaluation of water information and education materials and resources; and

(8) coordinate the dissemination of water information and education through existing delivery systems.

Sec. 17.

new text begin [103B.701] STAR LAKES. new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, the term "lake association" means an association organized for the purpose of addressing issues on a specific lake or river, a lake improvement district, or a lake conservation district. new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) A lake association may apply to the Star Lake Board for designation as a star lake or river. The applicant must include a copy of a star lake or river management plan for the lake or river. new text end

new text begin (b) After review of the application, the Star Lake Board shall determine whether designation as a star lake or river will be granted. The designation as a star lake or river becomes effective the day following designation by the board. The board shall publish the decision on a star lake or river designation in the State Register, including the effective date of the designation. new text end

new text begin (c) The star lake or river designation is effective until the earlier of: new text end

new text begin (1) five years after the date of designation; or new text end

new text begin (2) when the Star Lake Board finds that the lake association is not fulfilling the requirements of this section or of the star lake or river management plan submitted. new text end

new text begin (d) Within six months before the expiration date of the designation as a star lake or river, a lake association may apply to continue the star lake or river designation under this section. new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin A lake association applying for designation as a star lake or river must: new text end

new text begin (1) develop and update a star lake or river management plan as provided in subdivision 4; new text end

new text begin (2) maintain a membership or participation of at least 50 percent of the private shoreland owners; new text end

new text begin (3) participate in a water quality monitoring program under section 115.06, subdivision 4, or other programs meeting Pollution Control Agency standards; and new text end

new text begin (4) meet at least annually to review the plan and notify appropriate state agencies and local government units in the development and monitoring of the star lake or river management plan. new text end

new text begin Subd. 4. new text end

new text begin Star lake or river management plan. new text end

new text begin (a) A star lake or river management plan must contain a baseline of the current condition of the lake or river based on scientific information and plans for addressing the following issues: new text end

new text begin (1) increases in native vegetation in the littoral area of the lake or river, where appropriate; new text end

new text begin (2) increases in native vegetation on the shoreline areas of the lake or river, where appropriate; new text end

new text begin (3) prevention, reduction, or elimination of aquatic invasive species in the lake or river; new text end

new text begin (4) increasing or maintaining a healthy diverse fishery that is appropriate for the lake or river; new text end

new text begin (5) how the association will work with state agencies and local government units to identify water pollution sources and impairments; new text end

new text begin (6) how the association will assist state and local programs to generate data needed by state agencies and local government units in an appropriate format; new text end

new text begin (7) promoting compliance with adopted shoreland zoning standards and shoreland best management practices; new text end

new text begin (8) how the lake association will assure its involvement in public input opportunities for various local comprehensive and project-specific planning and zoning processes; new text end

new text begin (9) education and recognition opportunities for shoreland owners and other entities that conduct activities affecting the quality of the lake or river; and new text end

new text begin (10) other activities that will coordinate with or enhance other state and local water management efforts. new text end

new text begin (b) The star lake or river management plan shall be updated within five years of adoption by the lake association. new text end

new text begin Subd. 5. new text end

new text begin State resources. new text end

new text begin State agencies may consider star lake or river designation in determining the allocation of financial and staff resources. new text end

Sec. 18.

new text begin [103B.702] STAR LAKE BOARD. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The Star Lake Board shall be established as a nonprofit corporation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The Star Lake Board shall promote and designate star lakes and rivers in Minnesota under section 103B.701. new text end

new text begin (b) The board must work with private and public entities to leverage the resources available to achieve and sustain the designation of Minnesota star lakes or rivers. The board may assist lake associations with finding appropriate technical and financial assistance and make recommendations to state agencies and local government units regarding the manner in which technical or financial assistance can be most effectively delivered. To the extent that money is available, the board may secure, provide, or recommend financial assistance to meet specific needs of lake associations, for: new text end

new text begin (1) completing a star lake or river management plan when the lake association does not have an existing management plan and the association is committed to the goals of a plan, as specified in section 103B.701, subdivision 4; and new text end

new text begin (2) addressing specific issues of the lake or river to achieve or maintain the goals of the lake or river management plan for lake associations that have achieved a star lake or river designation. new text end

new text begin (c) The board shall consist of: new text end

new text begin (1) three public members appointed by the speaker of the house, with one member representing county governments, one member representing city governments, and one member representing an organization that promotes clean lakes and rivers; new text end

new text begin (2) three public members appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration, with one member representing county governments, one member representing city governments, and one member representing an organization that promotes clean lakes and rivers; new text end

new text begin (3) five members, chosen by the other board members with regard to obtaining representation from a variety of types of lakes and rivers within the state, who are from lake associations representing designated star lakes or rivers, or until July 1, 2011, are eligible to achieve star lake or river designation; new text end

new text begin (4) one member designated by the commissioner of natural resources; new text end

new text begin (5) one member designated by the commissioner of the Pollution Control Agency; new text end

new text begin (6) one member designated by the chair of the Board of Water and Soil Resources; and new text end

new text begin (7) one member designated by the Indian Affairs Council. new text end

new text begin (d) By January 15 of each odd-numbered year, the board shall submit a report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over environment policy and finance on the activities for which money has been or will be spent for the current biennium, the applications for designation, and the star lakes or rivers designated by the board. new text end

new text begin (e) Public members appointed by the speaker of the house and the senate Subcommittee on Committees of the Committee on Rules and Administration serve at the pleasure of the appointing authority. new text end

new text begin Subd. 2. new text end

new text begin Conflict of interest. new text end

new text begin A board member may not participate in or vote on a decision of the board relating to an organization in which the member has either a direct or indirect personal financial interest. While serving on the Star Lake Board, a member shall avoid any potential conflict of interest. new text end

new text begin Subd. 3. new text end

new text begin Staff; contracts. new text end

new text begin The board may hire staff or enter into contracts to carry out the activities of the board. new text end

new text begin Subd. 4. new text end

new text begin Bylaws. new text end

new text begin The board shall adopt bylaws necessary for the conduct of the business of the board consistent with this section. The corporation must publish bylaws and amendments to the bylaws in the State Register. new text end

new text begin Subd. 5. new text end

new text begin Place of business. new text end

new text begin The board shall locate and maintain the board's place of business within the state. new text end

new text begin Subd. 6. new text end

new text begin Chair. new text end

new text begin The board shall annually elect from among its members a chair and other officers necessary for the performance of its duties. new text end

new text begin Subd. 7. new text end

new text begin Meetings. new text end

new text begin The board shall meet at least twice each year and may hold additional meetings upon giving notice in accordance with the bylaws of the board. Board meetings are subject to chapter 13D. new text end

new text begin Subd. 8. new text end

new text begin Funds. new text end

new text begin The board may accept and use gifts, grants, or contributions from any source. Unless otherwise restricted by the terms of a gift or bequest, the board may sell, exchange, or otherwise dispose of and invest or reinvest the money, securities, or other property given or bequested to it. The principal of these funds, the income from them, and all other revenues received by the board from any nonstate source must be placed in the depositories the board determines and is subject to expenditure for the board's purposes. new text end

new text begin Subd. 9. new text end

new text begin Accounts; audits. new text end

new text begin The board may establish funds and accounts necessary to carry out its responsibilities. The board shall provide for and pay the cost of an independent audit of its official books and records by the legislative auditor subject to sections 3.971 and 3.972. A copy of this audit shall be filed with the secretary of state. new text end

Sec. 19.

Minnesota Statutes 2006, section 103G.271, subdivision 6, is amended to read:

Subd. 6.

Water use permit processing fee.

(a) Except as described in paragraphs (b) to (f), a water use permit processing fee must be prescribed by the commissioner in accordance with the schedule of fees in this subdivision for each water use permit in force at any time during the year. The schedule is as follows, with the stated fee in each clause applied to the total amount appropriated:

(1) deleted text begin $101deleted text end new text begin $140new text end for amounts not exceeding 50,000,000 gallons per year;

(2) deleted text begin $3deleted text end new text begin $3.50new text end per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less than 100,000,000 gallons per year;

(3) deleted text begin $3.50deleted text end new text begin $4new text end per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less than 150,000,000 gallons per year;

(4) deleted text begin $4deleted text end new text begin $4.50new text end per 1,000,000 gallons for amounts greater than 150,000,000 gallons but less than 200,000,000 gallons per year;

(5)deleted text begin $4.50deleted text end new text begin $5new text end per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less than 250,000,000 gallons per year;

(6) deleted text begin $5deleted text end new text begin $5.50new text end per 1,000,000 gallons for amounts greater than 250,000,000 gallons but less than 300,000,000 gallons per year;

(7) deleted text begin $5.50deleted text end new text begin $6new text end per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less than 350,000,000 gallons per year;

(8) deleted text begin $6deleted text end new text begin $6.50new text end per 1,000,000 gallons for amounts greater than 350,000,000 gallons but less than 400,000,000 gallons per year;

(9) deleted text begin $6.50deleted text end new text begin $7new text end per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less than 450,000,000 gallons per year;

(10) deleted text begin $7deleted text end new text begin $7.50new text end per 1,000,000 gallons for amounts greater than 450,000,000 gallons but less than 500,000,000 gallons per year; and

(11) deleted text begin $7.50deleted text end new text begin $8new text end per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.

(b) For once-through cooling systems, a water use processing fee must be prescribed by the commissioner in accordance with the following schedule of fees for each water use permit in force at any time during the year:

(1) for nonprofit corporations and school districts, deleted text begin $150deleted text end new text begin $200new text end per 1,000,000 gallons; and

(2) for all other users, deleted text begin $300deleted text end new text begin $420new text end per 1,000,000 gallons.

(c) The fee is payable based on the amount of water appropriated during the year and, except as provided in paragraph (f), the minimum fee is $100.

(d) For water use processing fees other than once-through cooling systems:

(1) the fee for a city of the first class may not exceed $250,000 per year;

(2) the fee for other entities for any permitted use may not exceed:

(i) $50,000 per year for an entity holding three or fewer permits;

(ii) $75,000 per year for an entity holding four or five permits;

(iii) $250,000 per year for an entity holding more than five permits;

(3) the fee for agricultural irrigation may not exceed $750 per year;

(4) the fee for a municipality that furnishes electric service and cogenerates steam for home heating may not exceed $10,000 for its permit for water use related to the cogeneration of electricity and steam; and

(5) no fee is required for a project involving the appropriation of surface water to prevent flood damage or to remove flood waters during a period of flooding, as determined by the commissioner.

(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two percent per month calculated from the original due date must be imposed on the unpaid balance of fees remaining 30 days after the sending of a second notice of fees due. A fee may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal governmental agency holding a water appropriation permit.

(f) The minimum water use processing fee for a permit issued for irrigation of agricultural land is $20 for years in which:

(1) there is no appropriation of water under the permit; or

(2) the permit is suspended for more than seven consecutive days between May 1 and October 1.

(g) A surcharge of $20 per million gallons in addition to the fee prescribed in paragraph (a) shall be applied to the volume of water used in each of the months of June, July, and August that exceeds the volume of water used in January for municipal water use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities with more than one permit shall be determined based on the total appropriations from all permits that supply a common distribution system.

Sec. 20.

Minnesota Statutes 2007 Supplement, section 103G.291, subdivision 3, is amended to read:

Subd. 3.

Water supply plans; demand reduction.

(a) Every public water supplier serving more than 1,000 people must submit a water supply plan to the commissioner for approval by January 1, 1996. In accordance with guidelines developed by the commissioner, the plan must address projected demands, adequacy of the water supply system and planned improvements, existing and future water sources, natural resource impacts or limitations, emergency preparedness, water conservation, supply and demand reduction measures, and allocation priorities that are consistent with section 103G.261. Public water suppliers must update their plan and, upon notification, submit it to the commissioner for approval every ten years.

(b) The water supply plan in paragraph (a) is required for all communities in the metropolitan area, as defined in section 473.121, with a municipal water supply system and is a required element of the local comprehensive plan required under section 473.859. Water supply plans or updates submitted after December 31, 2008, must be consistent with the metropolitan area master water supply plan required under section 473.1565, subdivision 1, paragraph (a), clause (2).

(c) Public water suppliers serving more than 1,000 people must employ water use demand reduction measuresnew text begin , including a conservation rate structure, as defined in subdivision 4, paragraph (a), unless exempted under subdivision 4, paragraph (c),new text end before requesting approval from the commissioner of health under section 144.383, paragraph (a), to construct a public water supply well or requesting an increase in the authorized volume of appropriation. Demand reduction measures must include evaluation of conservation rate structures and a public education program that may include a toilet and showerhead retrofit program.

(d) Public water suppliers serving more than 1,000 people must submit records that indicate the number of connections and amount of use by customer category and volume of water unaccounted for with the annual report of water use required under section 103G.281, subdivision 3.

(e) For the purposes of this deleted text begin subdivisiondeleted text end new text begin sectionnew text end , "public water supplier" means an entity that owns, manages, or operates a public water supply, as defined in section 144.382, subdivision 4.

Sec. 21.

Minnesota Statutes 2006, section 103G.291, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Conservation rate structure required. new text end

new text begin (a) For the purposes of this section, "conservation rate structure" means a rate structure that encourages conservation and may include increasing block rates, seasonal rates, time of use rates, individualized goal rates, or excess use rates. The rate structure must consider each residential unit as an individual user in multiple-family dwellings. new text end

new text begin (b) To encourage conservation, a public water supplier serving more than 1,000 people in the metropolitan area, as defined in section 473.121, subdivision 2, shall use a conservation rate structure by January 1, 2010. All remaining public water suppliers serving more than 1,000 people shall use a conservation rate structure by January 1, 2013. new text end

new text begin (c) A public water supplier without the proper measuring equipment to track the amount of water used by its users, as of the effective date of this act, is exempt from this subdivision and the conservation rate structure requirement under subdivision 3, paragraph (c). new text end

Sec. 22.

Minnesota Statutes 2006, section 103G.615, subdivision 2, is amended to read:

Subd. 2.

Fees.

(a) The commissioner shall establish a fee schedule for permits to control or harvest aquatic plants other than wild rice. The fees must be set by rule, and section 16A.1283 does not applynew text begin , but the rule must not take effect until 45 legislative days after it has been reported to the legislaturenew text end . The fees deleted text begin may not exceed $750 per permitdeleted text end new text begin shall benew text end based upon the cost of receiving, processing, analyzing, and issuing the permit, and additional costs incurred after the application to inspect and monitor the activities authorized by the permit, and enforce aquatic plant management rules and permit requirements.

(b) deleted text begin Thedeleted text end new text begin Anew text end fee for a permit for the control of rooted aquatic vegetation deleted text begin is $35deleted text end for each contiguous parcel of shoreline owned by an ownernew text begin may be chargednew text end . This fee may not be charged for permits issued in connection with purple loosestrife control or lakewide Eurasian water milfoil control programs.

(c) A fee may not be charged to the state or a federal governmental agency applying for a permit.

(d) The money received for the permits under this subdivision shall be deposited in the treasury and credited to the water recreation account.

Sec. 23.

new text begin [114D.50] CLEAN WATER FUND. new text end

new text begin The clean water fund is established in the Minnesota Constitution, article XI, section 15. All money earned by the fund must be credited to the fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional amendment proposed in Laws 2008, chapter 151, is adopted by the voters. new text end

Sec. 24.

Minnesota Statutes 2006, section 116.07, subdivision 4, is amended to read:

Subd. 4.

Rules and standards.

Pursuant and subject to the provisions of chapter 14, and the provisions hereof, the Pollution Control Agency may adopt, amend and rescind rules and standards having the force of law relating to any purpose within the provisions of Laws 1967, chapter 882, for the prevention, abatement, or control of air pollution. Any such rule or standard may be of general application throughout the state, or may be limited as to times, places, circumstances, or conditions in order to make due allowance for variations therein. Without limitation, rules or standards may relate to sources or emissions of air contamination or air pollution, to the quality or composition of such emissions, or to the quality of or composition of the ambient air or outdoor atmosphere or to any other matter relevant to the prevention, abatement, or control of air pollution.

Pursuant and subject to the provisions of chapter 14, and the provisions hereof, the Pollution Control Agency may adopt, amend, and rescind rules and standards having the force of law relating to any purpose within the provisions of Laws 1969, chapter 1046, for the collection, transportation, storage, processing, and disposal of solid waste and the prevention, abatement, or control of water, air, and land pollution which may be related thereto, and the deposit in or on land of any other material that may tend to cause pollution. The agency shall adopt such rules and standards for sewage sludge, addressing the intrinsic suitability of land, the volume and rate of application of sewage sludge of various degrees of intrinsic hazard, design of facilities, and operation of facilities and sites. Any such rule or standard may be of general application throughout the state or may be limited as to times, places, circumstances, or conditions in order to make due allowance for variations therein. Without limitation, rules or standards may relate to collection, transportation, processing, disposal, equipment, location, procedures, methods, systems or techniques or to any other matter relevant to the prevention, abatement or control of water, air, and land pollution which may be advised through the control of collection, transportation, processing, and disposal of solid waste and sewage sludge, and the deposit in or on land of any other material that may tend to cause pollution. By January 1, 1983, the rules for the management of sewage sludge shall include an analysis of the sewage sludge determined by the commissioner of agriculture to be necessary to meet the soil amendment labeling requirements of section 18C.215. new text begin The rules for the disposal of solid waste shall include site-specific criteria to prohibit solid waste disposal based on the area's sensitivity to groundwater contamination, including site-specific testing. The rules shall also include modifications to financial assurance requirements under subdivision 4h that ensure the state is protected from financial responsibility for future groundwater contamination. Until the rules are modified to include site-specific criteria to prohibit areas from solid waste disposal due to groundwater contamination sensitivity, as required under this section, the agency shall not issue a permit for a new solid waste disposal facility, except for:new text end

new text begin (1) the reissuance of a permit for a land disposal facility operating as of March 1, 2008; new text end

new text begin (2) a permit to expand a land disposal facility operating as of March 1, 2008, beyond its permitted boundaries, including expansion on land that is not contiguous to, but is located within 600 yards of, the land disposal facility's permitted boundaries; new text end

new text begin (3) a permit to modify the type of waste accepted at a land disposal facility operating as of March 1, 2008; new text end

new text begin (4) a permit to locate a disposal facility that accepts only construction debris as defined in section 115A.03, subdivision 7; new text end

new text begin (5) a permit to locate a disposal facility that: new text end

new text begin (i) accepts boiler ash from an electric energy power plant that has wet scrubbed units or has units that have been converted from wet scrubbed units to dry scrubbed units as those terms are defined in section 216B.68; new text end

new text begin (ii) is on land that was owned on May 1, 2008, by the utility operating the electric energy power plant; and new text end

new text begin (iii) is located within three miles of the existing ash disposal facility for the power plant; or new text end

new text begin (6) a permit to locate a new solid waste disposal facility for ferrous metallic minerals regulated under Minnesota Rules, chapter 6130, or for nonferrous metallic minerals regulated under Minnesota Rules, chapter 6132. new text end

Pursuant and subject to the provisions of chapter 14, and the provisions hereof, the Pollution Control Agency may adopt, amend and rescind rules and standards having the force of law relating to any purpose within the provisions of Laws 1971, chapter 727, for the prevention, abatement, or control of noise pollution. Any such rule or standard may be of general application throughout the state, or may be limited as to times, places, circumstances or conditions in order to make due allowances for variations therein. Without limitation, rules or standards may relate to sources or emissions of noise or noise pollution, to the quality or composition of noises in the natural environment, or to any other matter relevant to the prevention, abatement, or control of noise pollution.

As to any matters subject to this chapter, local units of government may set emission regulations with respect to stationary sources which are more stringent than those set by the Pollution Control Agency.

Pursuant to chapter 14, the Pollution Control Agency may adopt, amend, and rescind rules and standards having the force of law relating to any purpose within the provisions of this chapter for generators of hazardous waste, the management, identification, labeling, classification, storage, collection, treatment, transportation, processing, and disposal of hazardous waste and the location of hazardous waste facilities. A rule or standard may be of general application throughout the state or may be limited as to time, places, circumstances, or conditions. In implementing its hazardous waste rules, the Pollution Control Agency shall give high priority to providing planning and technical assistance to hazardous waste generators. The agency shall assist generators in investigating the availability and feasibility of both interim and long-term hazardous waste management methods. The methods shall include waste reduction, waste separation, waste processing, resource recovery, and temporary storage.

The Pollution Control Agency shall give highest priority in the consideration of permits to authorize disposal of diseased shade trees by open burning at designated sites to evidence concerning economic costs of transportation and disposal of diseased shade trees by alternative methods.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

new text begin [129D.17] ARTS AND CULTURAL HERITAGE FUND. new text end

new text begin The arts and cultural heritage fund is established in the Minnesota Constitution, article XI, section 15. All money earned by the fund must be credited to the fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional amendment proposed in Laws 2008, chapter 151, is adopted by the voters. new text end

Sec. 26.

new text begin [173.0855] STAR LAKE OR RIVER SIGNS. new text end

new text begin Subdivision 1. new text end

new text begin Authority to erect. new text end

new text begin (a) A county, statutory or home rule charter city, or town of Minnesota that contains a star lake or river designated under section 103B.701 may request the Department of Transportation to erect star lake or river signs pursuant to section 161.139. One sign may be erected at each approach to a lake or river within the right-of-way of an interstate or other highway that passes over a lake or river in the Department of Transportation's eight-county metropolitan district or near or over a lake or river in greater Minnesota. new text end

new text begin (b) An official lake or river sign on the right-of-way of an interstate or other highway may be replaced with a star lake or river sign by the Department of Transportation pursuant to section 161.139. new text end

new text begin Subd. 2. new text end

new text begin Sign standards. new text end

new text begin The Department of Transportation shall design and manufacture the star lake and river signs to specifications not contrary to other federal and state highway sign standards. new text end

Sec. 27.

Minnesota Statutes 2006, section 473.1565, subdivision 3, is amended to read:

Subd. 3.

Reports to legislature.

The council must submit reports to the legislature regarding its findings, recommendations, and continuing planning activities under subdivision 1. deleted text begin The first report must be submitted to the legislature by the date the legislature convenes in 2007 and subsequent reports must be submitted by such date every five years thereafter.deleted text end new text begin These reports shall be included in the "Minnesota Water Plan" required in section 103B.151, and five-year interim reports may be provided as necessary.new text end

Sec. 28.

Laws 2007, chapter 57, article 1, section 4, subdivision 4, is amended to read:

Subd. 4.

Forest Management

44,495,000 43,393,000
Appropriations by Fund
General 24,755,000 24,836,000
Natural Resources 19,483,000 18,293,000
Game and Fish 257,000 264,000

$7,217,000 the first year and $7,217,000 the second year are for prevention, presuppression, and suppression costs of emergency firefighting and other costs incurred under Minnesota Statutes, section 88.12. If the appropriation for either year is insufficient to cover all costs of presuppression and suppression, the amount necessary to pay for these costs during the biennium is appropriated from the general fund.

By November 15 of each year, the commissioner of natural resources shall submit a report to the chairs of the house and senate committees and divisions having jurisdiction over environment and natural resources finance, identifying all firefighting costs incurred and reimbursements received in the prior fiscal year. These appropriations may not be transferred. Any reimbursement of firefighting expenditures made to the commissioner from any source other than federal mobilizations shall be deposited into the general fund.

$17,983,000 the first year and $18,293,000 the second year are from the forest management investment account in the natural resources fund for only the purposes specified in Minnesota Statutes, section 89.039, subdivision 2.

Of this amount:

(1) $750,000 each year is for additional staff to enhance timber sales;

(2) $1,000,000 each year is for forest improvements;

(3) $1,100,000 each year is for forest road maintenance;

(4) $600,000 each year is for the ecological classification system on state forest lands;

(5) $350,000 each year is for the prevention of invasive species on state forest lands; and

(6) $400,000 each year is for the re-inventory of state forest lands.

Money for forest road maintenance is onetime.

$780,000 the first year and $780,000 the second year are for the Forest Resources Council for implementation of the Sustainable Forest Resources Act.

$40,000 the first year is for the Forest Resources Council to provide a grant to the University of Minnesota to prepare a statewide plan to address the fragmentation and parcelization of large blocks of forest land in the state.

$200,000 in fiscal year 2008 is for a grant to the Forest Resources Research Advisory Committee to provide direction on research topics recommended by the governor's task force on the competitiveness of Minnesota's primary forest products industry.

$350,000 the first year and $350,000 the second year are for the FORIST timber management information system, other information systems, and for increased forestry management. The amount in the second year is also available in the first year.

$257,000 the first year and $264,000 the second year are from the game and fish fund to implement ecological classification systems (ECS) standards on forested landscapes. This appropriation is from revenue deposited in the game and fish fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (1).

$110,000 the first year is to develop and implement a statewide information and education campaign regarding the statewide ban on the transport, storage, or use of nonapproved firewood on state-administered lands.

$1,500,000 the first year is from the forest management investment account in the natural resources fund for the purposes of section 158. This is a onetime appropriation.

$75,000 the first year is to the Forest Resources Council for a task force on forest protection and $75,000 the second year is appropriated to the commissioner for grants to cities, counties, townships, special recreation areas, and park and recreation boards in cities of the first class for the identification, removal, disposal, and replacement of dead or dying shade trees lost to forest pests or disease. For purposes of this section, "shade tree" means a woody perennial grown primarily for aesthetic or environmental purposes with minimal to residual timber value. The commissioner shall consult with municipalities; park and recreation boards in cities of the first class; nonprofit organizations; and other interested parties in developing eligibility criteria. * (The preceding text beginning "$75,000 the first year" was indicated as vetoed by the governor.)

$200,000 in fiscal year 2008 is for a grant to the Natural Resources Research Institute for silvicultural research to improve the quality and quantity of timber fiber. The appropriation must be matched in the amount of $200,000 in cash or in-kind contributions from the forest products industry members of the Minnesota Forest Productivity Research Cooperative.

$1,000,000 the first year and $1,000,000 the second year are to support additional deleted text begin technical and cost-share assistance to nonindustrial private forest (NIPF) landownersdeleted text end new text begin forest management activitiesnew text end . The base appropriation in fiscal year 2010 and later is $500,000.

$200,000 the first year and $200,000 the second year are to deleted text begin address escalating land asset management demands, such as boundary disputes, access easements, and sale, exchange, and acquisition of forest landsdeleted text end new text begin support additional forest management activitiesnew text end .

Sec. 29.

Laws 2007, chapter 57, article 1, section 4, subdivision 6, is amended to read:

Subd. 6.

Trails and Waterways Management

30,257,000 30,492,000
Appropriations by Fund
General 2,538,000 2,568,000
Natural Resources 25,600,000 25,730,000
Game and Fish 2,119,000 2,194,000

$8,424,000 the first year and $8,424,000 the second year are from the snowmobile trails and enforcement account in the natural resources fund for snowmobile grants-in-aid. The additional money under this item may be used for new grant-in-aid trails. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.

$1,175,000 the first year and $1,325,000 the second year are from the natural resources fund for off-highway vehicle grants-in-aid. Of this amount, $825,000 the first year and $1,075,000 the second year are from the all-terrain vehicle account; $150,000 each year is from the off-highway motorcycle account; and $200,000 the first year and $100,000 the second year are from the off-road vehicle account. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.

$261,000 the first year and $261,000 the second year are from the water recreation account in the natural resources fund for a safe harbor program on Lake Superior.

$742,000 the first year and $760,000 the second year are from the natural resources fund for state trail operations and maintenance. The money may be used for trail maintenance, signage, mapping, interpretation, native prairie restoration using best management practices, and maintenance of nonmotorized forest trails. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (2).

$655,000 the first year and $655,000 the second year are from the natural resources fund for trail grants to local units of government on land to be maintained for at least 20 years for the purposes of the grant. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (4). new text begin Any unencumbered balance does not cancel at the end of the first year and is available for the second year. In addition, if a project financed under this program receives a federal grant award, the availability of the financing from this paragraph for that project is extended to equal the period of the federal grant.new text end

$150,000 the first year and $150,000 the second year are from the all-terrain vehicle account for two all-terrain vehicle trail specialists to assist and consult with on all-terrain vehicle grant-in-aid education and training for sustainable trail development and maintenance, as well as providing training for public and private sector trail monitoring. The specialists may assist in the evaluation of grant-in-aid trail proposals, but not in the promotion of new trails.

$1,965,000 the first year and $2,040,000 the second year are from the game and fish fund for expenditures on water access sites according to the requirements of the federal sport and fish restoration program.

Money appropriated under Laws 2005, First Special Session chapter 1, article 2, section 11, subdivision 6, paragraph (h), for the Paul Bunyan State Trail connection is available until June 30, 2008.

$400,000 each year is for operation and maintenance of nonmotorized trails within state forests. This is a onetime appropriation.

$75,000 each year is for additional wild and scenic rivers program activities.

$120,000 the first year is from the water recreation account in the natural resources fund to cooperate with local units of government in marking routes and designating river accesses and campsites under Minnesota Statutes, section 85.32. This is a onetime appropriation and available until spent.

The appropriation in Laws 2005, First Special Session chapter 1, article 2, section 3, subdivision 6, from the lottery in lieu account in the natural resources fund for trail grants to local units of government, is available until June 30, 2009.

Sec. 30.

new text begin MINING ADMINISTRATIVE FEE. new text end

new text begin (a) Until a new application fee schedule is adopted for permits to mine or process taconite according to the report submitted by the commissioner of natural resources under this article, the commissioner shall charge the administrative fees established in paragraph (b), payable to the commissioner by June 30 of each year, beginning in 2008. new text end

new text begin (b) A company that manages a taconite mining or taconite processing operation shall pay: new text end

new text begin (1) $90,000 if the total production of the company's combined operations in the state had an annual production of 10,000,000 or more tons of taconite pellets or iron nuggets during the previous calendar year; new text end

new text begin (2) $10,000 if the total production of the company's combined operations in the state had an annual production of less than 10,000,000 tons of taconite pellets or iron nuggets during the previous calendar year; and new text end

new text begin (3) $3,333 if the mining operation is permitted to mine, but had no annual production of taconite pellets or iron nuggets during the previous calendar year. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to companies that manage a taconite mining or taconite processing operation holding or applying for a permit to mine under Minnesota Statutes, section 93.481, during the 2007 calendar year. new text end

Sec. 31.

new text begin DEPARTMENT OF NATURAL RESOURCES RULEMAKING REQUIRED; STRUCTURES IN PUBLIC WATERS. new text end

new text begin By January 15, 2010, the commissioner of natural resources shall update rules on structures that are allowed in public waters and the permit requirements for those structures under Minnesota Rules, chapter 6115. The Department of Natural Resources general permit no. 2008-0401 expires on the effective date of the updated rules. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

new text begin FIRST MEETING; DEADLINE FOR APPOINTMENTS. new text end

new text begin The appointing authorities named in Minnesota Statutes, section 103B.702, must complete their appointments to the Star Lake Board by January 15, 2009, with the exception of the appointments required under Minnesota Statutes, section 103B.702, subdivision 1, paragraph (c), clause (3), which must be completed within 30 days of the first meeting of the board. The board member designated by the Board of Water and Soil Resources must convene the first meeting of the board no later than February 15, 2009. new text end

Sec. 33.

new text begin SOLID WASTE DISPOSAL RULES REPORT; LEGISLATIVE REVIEW. new text end

new text begin By January 15, 2010, the Pollution Control Agency shall report to the senate and house of representatives environment policy and finance committees and divisions on proposed rules, under Minnesota Statutes, section 116.07, subdivision 4, to prohibit the disposal of solid waste in specific areas due to the sensitivity of the area to groundwater contamination. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

new text begin INDUSTRIAL AND CONSTRUCTION AND DEMOLITION LANDFILL WORKING GROUP. new text end

new text begin The commissioner of the Pollution Control Agency shall, by July 15, 2008, convene a working group to develop, evaluate, and recommend policies and legislation regarding the management of industrial solid waste and construction and demolition debris in land disposal facilities. The commissioner shall appoint members of the working group, including representatives from counties, state agencies, private landfill owners, waste haulers, environmental organizations, and other interested parties to serve on the working group. The Pollution Control Agency shall serve as staff to the working group. The working group shall submit a report of its findings and recommendations to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over environmental policy and environmental finance by January 15, 2009. new text end

ARTICLE 6

ENERGY, COMMERCE, UTILITIES

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

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

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin (2,670,000) new text end new text begin $ new text end new text begin (1,436,000) new text end new text begin $ new text end new text begin (4,106,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

new text begin The dollar amounts in the columns under "APPROPRIATIONS" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2007, chapter 57, or other law to the specified agencies. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2008" and "2009" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal year ending June 30, 2008, are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2008 new text end new text begin 2009 new text end

Sec. 3.

new text begin COMMERCE new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin (2,670,000) new text end new text begin $ new text end new text begin (1,436,000) new text end

new text begin Subd. 2. new text end

new text begin Administration new text end

new text begin -0- new text end new text begin 84,000 new text end

new text begin $46,000 in the second year is a base reduction to the administration program and the Office of Energy Security. new text end

new text begin $130,000 in the second year is a base increase for staffing to enhance unclaimed property compliance. new text end

new text begin Subd. 3. new text end

new text begin Market Assurance new text end

new text begin (270,000) new text end new text begin (270,000) new text end

new text begin This is a base reduction to the do not call program. new text end

new text begin Subd. 4. new text end

new text begin Energy and Telecommunications new text end

new text begin (2,400,000) new text end new text begin (1,250,000) new text end

new text begin $200,000 in the first year is for the solar rebate program. Equipment used to heat hot water at a residential property for domestic use, not including equipment used for a hot tub or swimming pool, is eligible for the solar rebate program. This is a onetime appropriation and is available until spent. new text end

new text begin Of the amounts appropriated from the special revenue fund in the second year to the commissioner of commerce for renewable energy research under Laws 2007, chapter 57, article 2, section 3, subdivision 6, clause (7), $500,000 must be used to support the algae-to-biofuels research project at the University of Minnesota and the Metropolitan Council. new text end

new text begin Money appropriated from the special revenue fund for renewable energy research under Laws 2007, chapter 57, article 2, section 3, subdivision 6, clause (7), may be used for a grant to a cellulosic ethanol facility using paper mill sludge. new text end

new text begin Of the assessment amount authorized under Minnesota Statutes, section 216B.241, subdivision 1e, up to $200,000 in the second year shall be used for the required report and activities of the Green Jobs Task Force established in this article. This is a onetime appropriation. new text end

new text begin Of the amounts appropriated in the second year to the commissioner of commerce from the special revenue fund for environmentally friendly automotive technology projects under Laws 2007, chapter 57, article 2, section 3, subdivision 6, clause (4), up to $200,000 is for the green economy report and the statewide action plan and other activities of the Green Jobs Task Force established in this article, of which no more than $50,000 may be spent for the green economy report; $100,000 is for the city of St. Paul for a site evaluation of the Ford manufacturing plant and for workforce development and skills assessment of the Ford employees; and $250,000 is for activities and research for the Green Manufacturing Initiative by a statewide organization dedicated to furthering the green economy and its fiscal agent. new text end

new text begin $1,250,000 is a reduction from the fiscal year 2009 appropriation for E-85 cost share grants. The base for the grant program in fiscal year 2010 is $1,000,000. The base for fiscal year 2011 is $0. new text end

new text begin $2,600,000 is a reduction from the fiscal year 2008 appropriation for renewable hydrogen initiative grants. new text end

new text begin Subd. 5. new text end

new text begin Transfers new text end

new text begin (a) new text end new text begin Insurance Fraud Prevention Account new text end

new text begin Prior to July 31, 2008, the commissioner of finance shall transfer $1,500,000 from the unexpended balance of the insurance fraud prevention account established in Minnesota Statutes, section 45.0135, to the general fund. new text end

new text begin After June 15, 2009, and prior to June 30, 2009, the commissioner of finance shall transfer $1,500,000 from the unexpended balance of the insurance fraud prevention account established in Minnesota Statutes, section 45.0135, to the general fund. new text end

new text begin (b) Real Estate Education, Research and Recovery Fund new text end

new text begin Prior to July 31, 2008, the commissioner of finance shall transfer $850,000 from the unexpended balance of the real estate education, research and recovery fund established in Minnesota Statutes, section 82.43, to the general fund. new text end

new text begin (c) new text end new text begin Consumer Education Account new text end

new text begin Prior to July 31, 2008, the commissioner of finance shall transfer $100,000 from the unexpended balance of the consumer education account established under Minnesota Statutes, section 58.10, to the general fund. new text end

new text begin (d) new text end new text begin Automobile Theft Prevention Account new text end

new text begin Prior to July 31, 2008, the commissioner of finance shall transfer $230,000 from the unexpended balance of the automobile theft prevention account established in Minnesota Statutes, section 168A.40, to the general fund. new text end

new text begin (e) Assigned Risk Plan new text end

new text begin By June 30, 2009, the commissioner of finance shall transfer $10,000,000 in assets of the workers' compensation assigned risk plan created under Minnesota Statutes, section 79.252, to the general fund. new text end

Sec. 4.

new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin new text end new text begin new text end

new text begin Prior to July 31, 2008, the commissioner of finance shall transfer $4,000,000 from the telephone assistance fund established in Minnesota Statutes, section 237.701, to the general fund. new text end

Sec. 5.

Minnesota Statutes 2007 Supplement, section 80A.65, subdivision 1, is amended to read:

Subdivision 1.

Registration or notice filing fee.

(a) There shall be a filing fee of $100 for every application for registration or notice filing. There shall be an additional fee of one-tenth of one percent of the maximum aggregate offering price at which the securities are to be offered in this state, and the maximum combined fees shall not exceed $300.

(b) When an application for registration is withdrawn before the effective date or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee shall be returned. If an application to register securities is denied, the total of all fees received shall be retained.

(c) Where a filing is made in connection with a federal covered security under section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. If the filing is made in connection with redeemable securities issued by an open end management company or unit investment trust, as defined in the Investment Company Act of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate offering price at which the securities are to be offered in this state during the notice filing period. The fee must be paid at the time of the initial filing and thereafter in connection with each renewal no later than July 1 of each year and must be sufficient to cover the shares the issuer expects to sell in this state over the next 12 months. If during a current notice filing the issuer determines it is likely to sell shares in excess of the shares for which fees have been paid to the administrator, the issuer shall submit an amended notice filing to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the maximum aggregate offering price of the additional shares. Shares for which a fee has been paid, but which have not been sold at the time of expiration of the notice filing, may not be sold unless an additional fee to cover the shares has been paid to the administrator as provided in this section and section 80A.50. If the filing is made in connection with redeemable securities issued by such a company or trust, there is no maximum fee for securities filings made according to this paragraph. If the filing is made in connection with any other federal covered security under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth of one percent of the maximum aggregate offering price at which the securities are to be offered in this state, and the combined fees shall not exceed $300. deleted text begin Beginning with fiscal year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year, the administrator shall determine the total amount of all fees that were collected under this paragraph in connection with any filings made for that fiscal year for securities of an open-end investment company on behalf of a security that is a federal covered security pursuant to section 18(b)(2) of the Securities Act of 1933. To the extent the total fees collected by the administrator in connection with these filings exceed $25,600,000 in a fiscal year, the administrator shall refund, on a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of fees collected by the administrator in excess of $25,600,000. No individual refund is required of amounts of $100 or less for a fiscal year.deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2007 Supplement, section 216C.41, subdivision 3, is amended to read:

Subd. 3.

Eligibility window.

Payments may be made under this section only for:

(a) electricity generated from:

(1) a qualified hydroelectric facility that is operational and generating electricity before December 31, deleted text begin 2009deleted text end new text begin 2011new text end ;

(2) a qualified wind energy conversion facility that is operational and generating electricity before January 1, 2008; or

(3) a qualified on-farm biogas recovery facility from July 1, 2001, through December 31, 2017; and

(b) gas generated from a qualified on-farm biogas recovery facility from July 1, 2007, through December 31, 2017.

Sec. 7.

Minnesota Statutes 2006, section 216C.41, subdivision 4, is amended to read:

Subd. 4.

Payment period.

(a) A facility may receive payments under this section for a ten-year period. No payment under this section may be made for electricity generated:

(1) by a qualified hydroelectric facility after December 31, deleted text begin 2019deleted text end new text begin 2021new text end ;

(2) by a qualified wind energy conversion facility after December 31, 2018; or

(3) by a qualified on-farm biogas recovery facility after December 31, 2015.

(b) The payment period begins and runs consecutively from the date the facility begins generating electricity or, in the case of refurbishment of a hydropower facility, after substantial repairs to the hydropower facility dam funded by the incentive payments are initiated.

Sec. 8.

Minnesota Statutes 2006, section 325E.313, is amended to read:

325E.313 NO-CALL LIST.

Subdivision 1.

Establishment of list.

The commissioner shall establish and maintain a list of telephone numbers of residential subscribers who object to receiving telephone solicitations. The commissioner may fulfill the requirements of this subdivision by contracting with an agent for the establishment and maintenance of the list. The list must be established by January 1, 2003.

Subd. 2.

Operation and maintenance of list.

(a) Each local exchange company must inform its residential subscribers of the opportunity to provide notification to the commissioner or its contractor that the subscriber objects to receiving telephone solicitations. The notification must be made in the manner prescribed by the commissioner.

(b) Any residential subscriber may contact the commissioner or the commissioner's agent and give notice, in the manner prescribed by the commissioner, that the subscriber objects to receiving telephone solicitations. The commissioner shall add the telephone number of any subscriber who gives notice of objection to the list maintained pursuant to subdivision 1 within 90 days of the date the notice is received.

deleted text begin (c) Any notice given by a subscriber under this subdivision shall be effective for four years unless revoked by the subscriber. Any subsequent notices given by the same subscriber related to a different telephone number are separate from the original notice. deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end The commissioner shall allow consumers to give notice under this subdivision by mail or electronically.

deleted text begin (e)deleted text end new text begin (d)new text end The commissioner shall establish the procedures by which a person wishing to make telephone solicitations may obtain access to the list. Those procedures shall, to the extent practicable, allow for access to paper or electronic copies of the list.

Subd. 3.

Use of federal list.

If, pursuant to United States Code, title 15, section 6102(a), the Federal Trade Commission establishes a national list of telephone numbers of subscribers who object to receiving telephone solicitations, the commissioner deleted text begin shall include subscribers who live in Minnesota and are included in the national list in the list established under this section. The commissioner shall also transmit to the Federal Trade Commission the telephone numbers included on the no-call list established under this section and shall request that they be included in the national listdeleted text end new text begin may consider the Federal Trade Commission as its agent for the establishment and maintenance of a listnew text end .

Sec. 9.

Minnesota Statutes 2006, section 325E.314, is amended to read:

325E.314 FEES; ACQUISITION AND USE OF LIST.

deleted text begin (a) A person or entity desiring to make telephone solicitations shall pay a fee, payable to the commissioner, for access to, or for paper or electronic copies of, the list established under section 325E.313. The fee shall not exceed $125 for each acquisition of the list. The fee shall not exceed $90 in fiscal year 2004, and the fee shall not exceed $75 in fiscal year 2005 and thereafter. deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end A caller who makes a telephone solicitation to the telephone line of any residential subscriber must, at the time of the call, have obtained access to a current version of the list at least once in the 90 days prior to the call. A caller who complies with this requirement is not liable for any violation of section 325E.312 relating to a solicitation made to a subscriber during the first 30 days after the caller first obtained a copy of the list including that subscriber's telephone number that has not been superseded by a later list obtained by the caller that does not include the subscriber's telephone number.

deleted text begin (c)deleted text end new text begin (b)new text end If the Federal Trade Commission establishes a national do-not-call list as described in section 325E.313, subdivision deleted text begin 3deleted text end new text begin 2new text end , a person or entity who is required by law to obtain a copy of the national list deleted text begin is not required to purchase or retain a copy of the list established by the commissioner, unless the Federal Trade Commission fails to incorporate the Minnesota names transmitted by the commissionerdeleted text end new text begin may meet its requirement through proof of purchase of the Minnesota numbers from the federal listnew text end .

Sec. 10.

Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purpose of sections 609.531 to 609.5318, the following terms have the meanings given them.

(a) "Conveyance device" means a device used for transportation and includes, but is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any equipment attached to it. The term "conveyance device" does not include property which is, in fact, itself stolen or taken in violation of the law.

(b) "Weapon used" means a dangerous weapon as defined under section 609.02, subdivision 6, that the actor used or had in possession in furtherance of a crime.

(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).

(d) "Contraband" means property which is illegal to possess under Minnesota law.

(e) "Appropriate agency" means the Bureau of Criminal Apprehension, new text begin the Department of Commerce Division of Insurance Fraud Prevention, new text end the Minnesota Division of Driver and Vehicle Services, the Minnesota State Patrol, a county sheriff's department, the Three Rivers Park District park rangers, the Department of Natural Resources Division of Enforcement, the University of Minnesota Police Department, the Department of Corrections' Fugitive Apprehension Unit, or a city or airport police department.

(f) "Designated offense" includes:

(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;

(2) for driver's license or identification card transactions: any violation of section 171.22; and

(3) for all other purposes: a felony violation of, or a felony-level attempt or conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21; 609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282; 609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561; 609.562; 609.563; 609.582; 609.59; 609.595; new text begin 609.611; new text end 609.631; 609.66, subdivision 1e; 609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89; 609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of section 609.891 or 624.7181; or any violation of section 609.324.

(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

Sec. 11.

new text begin GREEN ECONOMY REPORT. new text end

new text begin (a) Each state agency, other than the Iron Range Resources and Rehabilitation Board or the Office of the Commissioner of Iron Range Resources and Rehabilitation, that administers a loan or grant program must assess those programs to determine their potential to advance or promote the growth of the green economy, as defined in Minnesota Statutes, section 116J.437. An agency must report on its determination to the commissioner of commerce by September 15, 2008. new text end

new text begin (b) If a program is determined to have significant potential, the agency must develop a plan to integrate program elements appropriate to that program to advance or promote the growth of the green economy in this state. An agency must report on its plan to the commissioner of commerce by November 15, 2008. new text end

new text begin (c) The commissioner of commerce, in consultation with the commissioner of employment and economic development, must develop guidelines to be followed by state agencies in complying with this section. new text end

new text begin (d) By January 15, 2009, the commissioner of commerce, in consultation with the commissioner of employment and economic development, must submit a report containing the plans developed under paragraph (b), and any recommended implementing legislation, to the chairs and ranking minority members of the senate and house committees with primary jurisdiction over energy, environmental and economic development policy, and finance. new text end

new text begin (e) The commissioner of commerce may contract for services to fulfill the commissioner's duties under this section. new text end

Sec. 12.

new text begin GREEN JOBS TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Task force. new text end

new text begin (a) A Green Jobs Task Force is created to advise and assist the governor and legislature regarding activities to advance the state's economy, and to develop a statewide action plan as provided under subdivision 2. The task force shall be appointed no later than June 30, 2008, and consist of: new text end

new text begin (1) three members of the house of representatives, including one member of the minority party appointed by the speaker; new text end

new text begin (2) three members of the senate appointed by the Subcommittee on Committees of the Committee on Rules and Administration, including one member of the minority; new text end

new text begin (3) seven representatives from state agencies and institutions appointed by the governor, including one member from the Office of Energy Security, one member from the Department of Employment and Economic Development, one member from the Job Skills Partnership Board, one member from the University of Minnesota, one member from Minnesota State Colleges and Universities, one member from the Pollution Control Agency, and one member from the Department of Natural Resources; new text end

new text begin (4) three public members appointed by the governor, including one member representing the manufacturing industry, one member representing a statewide organization dedicated to commerce, and one member representing the Agricultural Utilization Research Institute; new text end

new text begin (5) four public members appointed by the speaker of the house of representatives, including one member representing labor, one member representing a statewide environmental organization, one member representing financial institutions or venture capital, and one member from a local economic development authority from greater Minnesota; and new text end

new text begin (6) four public members appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration, including one member from a local economic development authority from the metropolitan area, one member from a statewide organization dedicated to furthering the green economy, one member from a firm currently engaged in green manufacturing, and one local workforce development representative from an area that has experienced significant manufacturing job loss. new text end

new text begin (b) The commissioner of commerce, in cooperation with the commissioner of employment and economic development, shall provide staff support to the task force. The task force may accept outside resources to help support its efforts. new text end

new text begin (c) Each of the legislative appointing authorities must name a cochair of the task force from the legislative members appointed by that authority. new text end

new text begin (d) Public members of the task force must be compensated as provided in Minnesota Statutes, section 15.059, subdivision 3. new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin (a) By January 15, 2009, the task force shall develop and present to the legislature under Minnesota Statutes, section 3.195, and to the governor a statewide action plan to optimize the growth of the green economy. For the purpose of this section, "green economy" has the meaning given it by new Minnesota Statutes, section 116J.437, if enacted. new text end

new text begin (b) The plan must include necessary draft legislation and budget requests and may include administrative actions of governmental entities, collaborative actions, and actions of individuals and individual organizations. The plan must be developed following the analysis described in this paragraph and must be based on the analysis. The analysis must include: new text end

new text begin (1) a market analysis of the business opportunities and needs created by the laws enumerated in paragraph (a), including local, state, national, and international markets; new text end

new text begin (2) an analysis of the labor force needs related to the market analysis opportunities identified in clause (1), including educational, training, and retraining needs; and new text end

new text begin (3) an inventory of the current labor and business assets available to respond to the opportunities identified in clause (1) and the labor needs identified in clause (2). new text end

new text begin The task force shall contract for the analysis required by this paragraph. new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The task force expires June 30, 2009. new text end

ARTICLE 7

AGRICULTURE

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

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

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin (200,000) new text end new text begin $ new text end new text begin 388,000 new text end new text begin $ new text end new text begin 188,000 new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2007, chapter 45, article 1, to the agencies and for the purposes specified in this article. The appropriations are from the general fund or another named fund and are available for the fiscal years indicated for each purpose. The figures "2008" and "2009" used in this article mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2008 new text end new text begin 2009 new text end

Sec. 3.

new text begin AGRICULTURE new text end

new text begin $ new text end new text begin (200,000) new text end new text begin $ new text end new text begin 388,000 new text end

new text begin $302,000 is a reduction in 2009. The commissioner shall make a reduction of $100,000 from agricultural marketing, $100,000 shall come from efficiencies gained by the merger of the Agriculture Resources Management and Development Division and the Agriculture Finance Division, and the remainder shall come from a reduction in administrative services in Saint Paul. new text end

new text begin $1,000,000 in 2009 is for the livestock investment grant program in new Minnesota Statutes, section 17.118, if enacted. The commissioner may use up to 4-1/2 percent of this appropriation for costs incurred to administer the program. This is a onetime appropriation and is available until spent. new text end

new text begin The $200,000 appropriation in Laws 2007, chapter 45, article 1, section 3, subdivision 4, for a grant to the Elk River Economic Development Authority for a bioenergy project is canceled to the general fund. new text end

new text begin $310,000 is a reduction in 2009 of the appropriation for ethanol producer payments in Laws 2007, chapter 45, article 1, section 3, subdivision 4. This reduction is onetime. new text end

new text begin By January 15, 2009, the commissioner shall report to the house and senate committees with jurisdiction over agriculture finance a proposal for paying unpaid claimants of an entity no longer producing ethanol on a commercial scale at the location for which it qualified for producer payments. new text end

Sec. 4.

new text begin BOARD OF ANIMAL HEALTH. new text end

new text begin Notwithstanding Minnesota Statutes, section 35.085, the Board of Animal Health shall make a onetime grant of up to $12,000 to a beef cattle producer from the $100,000 appropriation for reimbursements in Laws 2007, chapter 45, article 1, section 4. The eligible beef cattle producer is located outside of a bovine tuberculosis containment area and purchased certified tuberculosis-free cattle yet sustained financial losses beyond the producer's control due to restrictions imposed by the Board of Animal Health that effectively denied the producer the ability to sell the tuberculosis-free cattle during favorable market conditions. new text end

Sec. 5.

Minnesota Statutes 2006, section 41A.09, subdivision 3a, is amended to read:

Subd. 3a.

Ethanol producer payments.

(a) The commissioner shall make cash payments to producers of ethanol located in the state that have begun production at a specific location by June 30, 2000. For the purpose of this subdivision, an entity that holds a controlling interest in more than one ethanol plant is considered a single producer. The amount of the payment for each producer's annual production, except as provided in paragraph (c), is 20 cents per gallon for each gallon of ethanol produced at a specific location on or before June 30, 2000, or ten years after the start of production, whichever is later. Annually, within 90 days of the end of its fiscal year, an ethanol producer receiving payments under this subdivision must file a disclosure statement on a form provided by the commissioner. The initial disclosure statement must include a summary description of the organization of the business structure of the claimant, a listing of the percentages of ownership by any person or other entity with an ownership interest of five percent or greater, and a copy of its annual audited financial statements, including the auditor's report and footnotes. The disclosure statement must include information demonstrating what percentage of the entity receiving payments under this section is owned by farmers or other entities eligible to farm or own agricultural land in Minnesota under the provisions of section 500.24. Subsequent annual reports must reflect noncumulative changes in ownership of ten percent or more of the entity. The report need not disclose the identity of the persons or entities eligible to farm or own agricultural land with ownership interests, individuals residing within 30 miles of the plant, or of any other entity with less than ten percent ownership interest, but the claimant must retain information within its files confirming the accuracy of the data provided. This data must be made available to the commissioner upon request. Not later than the 15th day of February in each year the commissioner shall deliver to the chairs of the standing committees of the senate and the house of representatives that deal with agricultural policy and agricultural finance issues an annual report summarizing aggregated data from plants receiving payments under this section during the preceding calendar year. Audited financial statements and notes and disclosure statements submitted to the commissioner are nonpublic data under section 13.02, subdivision 9. Notwithstanding the provisions of chapter 13 relating to nonpublic data, summaries of the submitted audited financial reports and notes and disclosure statements will be contained in the report to the committee chairs and will be public data.

(b) No payments shall be made for ethanol production that occurs after June 30, 2010. A producer of ethanol shall not transfer the producer's eligibility for payments under this section to an ethanol plant at a different location.

(c) If the level of production at an ethanol plant increases due to an increase in the production capacity of the plant, the payment under paragraph (a) applies to the additional increment of production until ten years after the increased production began. Once a plant's production capacity reaches 15,000,000 gallons per year, no additional increment will qualify for the payment.

(d) Total payments under paragraphs (a) and (c) to a producer in a fiscal year may not exceed $3,000,000.

(e) By the last day of October, January, April, and July, each producer shall file a claim for payment for ethanol production during the preceding three calendar months. A producer that files a claim under this subdivision shall include a statement of the producer's total ethanol production in Minnesota during the quarter covered by the claim. For each claim and statement of total ethanol production filed under this subdivision, the volume of ethanol production must be examined by an independent certified public accountant in accordance with standards established by the American Institute of Certified Public Accountants.

(f) Payments shall be made November 15, February 15, May 15, and August 15. A separate payment shall be made for each claim filed. Except as provided in paragraph (g), the total quarterly payment to a producer under this paragraph may not exceed $750,000.

(g) Notwithstanding the quarterly payment limits of paragraph (f), the commissioner shall make an additional payment in the fourth quarter of each fiscal year to ethanol producers for the lesser of: (1) 20 cents per gallon of production in the fourth quarter of the year that is greater than 3,750,000 gallons; or (2) the total amount of payments lost during the first three quarters of the fiscal year due to plant outages, repair, or major maintenance. Total payments to an ethanol producer in a fiscal year, including any payment under this paragraph, must not exceed the total amount the producer is eligible to receive based on the producer's approved production capacity. The provisions of this paragraph apply only to production losses that occur in quarters beginning after December 31, 1999.

(h) The commissioner shall reimburse ethanol producers for any deficiency in payments during earlier quarters if the deficiency occurred because of unallotment or because appropriated money was insufficient to make timely payments in the full amount provided in paragraph (a). Notwithstanding the quarterly or annual payment limitations in this subdivision, the commissioner shall begin making payments for earlier deficiencies in each fiscal year that appropriations for ethanol payments exceed the amount required to make eligible scheduled payments. Payments for earlier deficiencies must continue until the deficiencies for each producer are paid in fullnew text begin , except the commissioner shall not make a deficiency payment to an entity that no longer produces ethanol on a commercial scale at the location for which the entity qualified for producer payments, or to an assignee of the entitynew text end .

(i) The commissioner may make direct payments to producers of rural economic infrastructure with any amount of the annual appropriation for ethanol producer payments and rural economic infrastructure that is in excess of the amount required to make scheduled ethanol producer payments and deficiency payments under paragraphs (a) to (h).

Sec. 6.

Laws 2007, chapter 45, article 1, section 3, subdivision 4, is amended to read:

Subd. 4.

Bioenergy and Value-Added Agricultural Products

19,918,000 15,168,000

$15,168,000 the first year and $15,168,000 the second year are for ethanol producer payments under Minnesota Statutes, section 41A.09. If the total amount for which all producers are eligible in a quarter exceeds the amount available for payments, the commissioner shall make payments on a pro rata basis. If the appropriation exceeds the total amount for which all producers are eligible in a fiscal year for scheduled payments and for deficiencies in payments during previous fiscal years, the balance in the appropriation is available to the commissioner for value-added agricultural programs including the value-added agricultural product processing and marketing grant program under Minnesota Statutes, section 17.101, subdivision 5. The appropriation remains available until spent.

$3,000,000 the first year is for grants to bioenergy projects. The NextGen Energy Board shall make recommendations to the commissioner on grants for owners of Minnesota facilities producing bioenergy, organizations that provide for on-station, on-farm field scale research and outreach to develop and test the agronomic and economic requirements of diverse stands of prairie plants and other perennials for bioenergy systems, or certain nongovernmental entities. For the purposes of this paragraph, "bioenergy" includes transportation fuels derived from cellulosic material as well as the generation of energy for commercial heat, industrial process heat, or electrical power from cellulosic material via gasification or other processes. The board must give priority to a bioenergy facility that is at least 60 percent owned and controlled by farmers, as defined in Minnesota Statutes, section 500.24, subdivision 2, paragraph (n), or natural persons residing in the county or counties contiguous to where the facility is located. Grants are limited to 50 percent of the cost of research, technical assistance, or equipment related to bioenergy production or deleted text begin $500,000deleted text end new text begin $1,000,000new text end , whichever is less. Grants to nongovernmental entities for the development of business plans and structures related to community ownership of eligible bioenergy facilities together may not exceed $150,000. The board shall make a good faith effort to select projects that have merit and when taken together represent a variety of bioenergy technologies, biomass feedstocks, and geographic regions of the state. Projects must have a qualified engineer certification on the technology and fuel source. Grantees shall provide reports at the request of the commissioner and must actively participate in the Agricultural Utilization Research Institute's Renewable Energy Roundtable. No later than February 1, 2009, the commissioner shall report on the projects funded under this appropriation to the house and senate committees with jurisdiction over agriculture finance. The commissioner's costs in administering the program may be paid from the appropriation.

$350,000 the first year is for grants to the Minnesota Institute for Sustainable Agriculture at the University of Minnesota to provide funds for on-station and on-farm field scale research and outreach to develop and test the agronomic and economic requirements of diverse stands of prairie plants and other perennials for bioenergy systems including, but not limited to, multiple species selection and establishment, ecological management between planting and harvest, harvest technologies, financial and agronomic risk management, farmer goal setting and adoption of technologies, integration of wildlife habitat into management approaches, evaluation of carbon and other benefits, and robust policies needed to induce farmer conversion on marginal lands.* (The preceding text beginning "$350,000 the first year" was indicated as vetoed by the governor.)

$200,000 the first year is for a grant to the Minnesota Turf Seed Council for basic and applied agronomic research on native plants, including plant breeding, nutrient management, pest management, disease management, yield, and viability. The grant recipient may subcontract with a qualified third party for some or all of the basic or applied research. The grant recipient must actively participate in the Agricultural Utilization Research Institute's Renewable Energy Roundtable and no later than February 1, 2009, must report to the house and senate committees with jurisdiction over agriculture finance. This is a onetime appropriation and is available until spent.

$200,000 the first year is for a grant to a joint venture combined heat and power energy facility located in Scott or LeSueur County for the creation of a centrally located biomass fuel supply depot with the capability of unloading, processing, testing, scaling, and storing renewable biomass fuels. The grant must be matched by at least $3 of nonstate funds for every $1 of state funds. The grant recipient must actively participate in the Agricultural Utilization Research Institute's Renewable Energy Roundtable and no later than February 1, 2009, must report to the house and senate committees with jurisdiction over agriculture finance. This is a onetime appropriation and is available until spent.

$300,000 the first year is for a grant to the Bois Forte Band of Chippewa for a feasibility study of a renewable energy biofuels demonstration facility on the Bois Forte Reservation in St. Louis and Koochiching Counties. The grant shall be used by the Bois Forte Band to conduct a detailed feasibility study of the economic and technical viability of developing a multistream renewable energy biofuels demonstration facility on Bois Forte Reservation land to utilize existing forest resources, woody biomass, and cellulosic material to produce biofuels or bioenergy. The grant recipient must actively participate in the Agricultural Utilization Research Institute's Renewable Energy Roundtable and no later than February 1, 2009, must report to the house and senate committees with jurisdiction over agriculture finance. This is a onetime appropriation and is available until spent.

$300,000 the first year is for a grant to the White Earth Band of Chippewa for a feasibility study of a renewable energy biofuels production, research, and production facility on the White Earth Reservation in Mahnomen County. The grant must be used by the White Earth Band and the University of Minnesota to conduct a detailed feasibility study of the economic and technical viability of (1) developing a multistream renewable energy biofuels demonstration facility on White Earth Reservation land to utilize existing forest resources, woody biomass, and cellulosic material to produce biofuels or bioenergy, and (2) developing, harvesting, and marketing native prairie plants and seeds for bioenergy production. The grant recipient must actively participate in the Agricultural Utilization Research Institute's Renewable Energy Roundtable and no later than February 1, 2009, must report to the house and senate committees with jurisdiction over agriculture finance. This is a onetime appropriation and is available until spent.

$200,000 the first year is for a grant to the Elk River Economic Development Authority for upfront engineering and a feasibility study of the Elk River renewable fuels facility. The facility must use a plasma gasification process to convert primarily cellulosic material, but may also use plastics and other components from municipal solid waste, as feedstock for the production of methanol for use in biodiesel production facilities. Any unencumbered balance in fiscal year 2008 does not cancel but is available for fiscal year 2009. Notwithstanding Minnesota Statutes, section 16A.285, the agency must not transfer this appropriation. The grant recipient must actively participate in the Agricultural Utilization Research Institute's Renewable Energy Roundtable and no later than February 1, 2009, must report to the house and senate committees with jurisdiction over agriculture finance. This is a onetime appropriation and is available until spent.

$200,000 the first year is for a grant to Chisago County to conduct a detailed feasibility study of the economic and technical viability of developing a multistream renewable energy biofuels demonstration facility in Chisago, Isanti, or Pine County to utilize existing forest resources, woody biomass, and cellulosic material to produce biofuels or bioenergy. Chisago County may expend funds to Isanti and Pine Counties and the University of Minnesota for any costs incurred as part of the study. The feasibility study must consider the capacity of: (1) the seed bank at Wild River State Park to expand the existing prairie grass, woody biomass, and cellulosic material resources in Chisago, Isanti, and Pine Counties; (2) willing and interested landowners in Chisago, Isanti, and Pine Counties to grow cellulosic materials; and (3) the Minnesota Conservation Corps, the sentence to serve program, and other existing workforce programs in east central Minnesota to contribute labor to these efforts. The grant recipient must actively participate in the Agricultural Utilization Research Institute's Renewable Energy Roundtable and no later than February 1, 2009, must report to the house and senate committees with jurisdiction over agriculture finance. This is a onetime appropriation and is available until spent.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 8

VETERANS AFFAIRS

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

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

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 4,145,000 new text end new text begin $ new text end new text begin 4,145,000 new text end
new text begin Special Revenue new text end new text begin -0- new text end new text begin (338,000) new text end new text begin new text end new text begin (338,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

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

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2008 new text end new text begin 2009 new text end

Sec. 3.

new text begin VETERANS AFFAIRS new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 3,807,000 new text end

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

new text begin $500,000 in 2009 is added to the base for grants to counties for veterans service offices as provided under Laws 2007, chapter 45, article 2, section 1, paragraph (b). This is a onetime appropriation. new text end

new text begin $2,500,000 in 2009 is for state soldiers assistance under Minnesota Statutes, section 197.05. Of this amount, $1,500,000 is added to the base for this activity. This appropriation is available until spent. The appropriation for state soldiers assistance for 2009 in Laws 2007, chapter 45, article 2, section 1, is available in 2008 if the appropriation for 2008 is insufficient. new text end

new text begin $500,000 in 2009 is for casework services for veterans. The commissioner, in consultation with the Department of Administration, shall use the request for proposal process in Minnesota Statutes, chapter 16C, to solicit bids for the provision of these services. The casework services provided should be community-based, available statewide, and include in-home counseling. new text end

new text begin $220,000 in 2009 is added to the base for operations of the LinkVET telephone line service for veterans. new text end

new text begin For purposes of efficiency, the commissioner must combine the services available through the toll-free higher education call center for veterans with those available through LinkVET. new text end

new text begin $250,000 in 2009 is for a grant to the Minnesota Assistance Council for Veterans for their work in helping veterans and their families affected by homelessness. new text end

new text begin $250,000 in 2009 is for the Veterans Claims Office for outreach and training to improve services and benefits to veterans. This appropriation includes money to add veterans service officer/coordinator positions, including one to assist female veterans. new text end

new text begin $25,000 in 2009 is to develop a pilot program for peer-to-peer counseling among combat veterans. This is a onetime appropriation. new text end

new text begin $338,000 is a reduction in 2009 from the special revenue fund appropriation from the account established in Minnesota Statutes, section 190.19. new text end

new text begin $200,000 in 2009 is a onetime appropriation for: new text end

new text begin (1) an intergovernmental and veterans strategic planning study for the Minnesota veterans homes, with special emphasis on exploring alternative models for the Minneapolis veterans home; new text end

new text begin (2) a study of the feasibility of partnering for home-based services for veterans with nongovernmental, nonprofit, or faith-based social service and health care delivery organizations, as a means of enabling veterans to live more independently, as an alternative to the projected sharply increasing needs for domiciliary and skilled nursing beds in state veterans homes. This is a onetime appropriation; and new text end

new text begin (3) designing a treatment program for veterans with traumatic brain injuries within the state veterans homes. new text end

new text begin $300,000 is a reduction in 2009 for the Veterans Homes Board. The base appropriation for fiscal years 2010 and 2011 is reduced by $300,000 in each year. This reduction is made possible by the enhanced efficiency in administration of the homes associated with the transfer of governing authority from the Veterans Homes Board to the commissioner of veterans affairs. new text end

new text begin Subd. 2. new text end

new text begin Report to the Legislature new text end

new text begin By January 15, 2009, the commissioner shall report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over veterans affairs policy and finance regarding activities and expenditures in programs receiving an appropriation in this article. new text end

Sec. 4.

Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin World War II memorial donation match account. new text end

new text begin Money remaining in the World War II memorial donation match account after the state share of the construction costs of the World War II memorial has been paid in full is appropriated to the commissioner of veterans affairs for services and programs for veterans and their families. new text end

Sec. 5.

Minnesota Statutes 2006, section 190.19, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The Minnesota "Support Our Troops" account is established in the special revenue fund. The account shall consist of contributions from private sources and appropriations.new text begin Money in the account is appropriated in equal shares to the Department of Military Affairs and the Department of Veterans Affairs.new text end

new text begin EFFECTIVE DATE. new text end

new text begin Notwithstanding Laws 2007, chapter 45, article 2, section 1, and article 3, section 2, subdivision 3, this section is effective for distribution of the Minnesota "Support Our Troops" account the day following final enactment. new text end

Sec. 6.

Minnesota Statutes 2006, section 190.19, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Uses; veterans. new text end

new text begin Money appropriated to the Department of Veterans Affairs from the Minnesota "Support Our Troops" account may be used for: new text end

new text begin (1) grants to veterans service organizations; and new text end

new text begin (2) outreach to underserved veterans. new text end

Sec. 7.

Laws 2007, chapter 144, article 1, section 7, is amended to read:

Sec. 7.

DEPARTMENT OF VETERANS AFFAIRS.

$ 6,000,000 $ 6,000,000

For grants to eligible veterans or the eligible spouses and children of veterans as provided under Minnesota Statutes, section 197.791. If the appropriation in this subdivision for either year is insufficient, the appropriation for the other year is available for it.

Of this appropriation, no more than deleted text begin three percentdeleted text end new text begin $100,000 new text end each year may be used for the administrative costs of operating this program.

new text begin On June 1, 2009, the commissioner of finance must determine the amount needed to fully fund the grant program under Minnesota Statutes, section 197.791, and must adjust the appropriations in this section to the amount needed to provide grants for all eligible veterans. new text end

ARTICLE 9

MILITARY AFFAIRS

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

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

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 390,000 new text end new text begin $ new text end new text begin 390,000 new text end
new text begin Special Revenue new text end new text begin -0- new text end new text begin (338,000) new text end new text begin (338,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2007, chapter 45, article 3, to the agencies and for the purposes specified in this article. The appropriations are from the general fund or another named fund and are available for the fiscal years indicated for each purpose. The figures "2008" and "2009" used in this article mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2008, are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2008 new text end new text begin 2009 new text end

Sec. 3.

new text begin MILITARY AFFAIRS new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 52,000 new text end

new text begin $75,000 in 2009 is to establish a state enhancement of the employer support of the guard and reserve program. The funding base for this activity is $35,000 each year in fiscal years 2010 and 2011. new text end

new text begin $135,000 in 2009 is to make $1,000 biannual bonus payments to National Guard medics who meet recertification requirements during the fiscal year. new text end

new text begin $180,000 in 2009 is to add "state navigator" positions to coordinate state agency programs and activities to support and assist soldiers and their families during and after the reintegration process. new text end

new text begin $338,000 is a reduction in 2009 from the special revenue fund appropriation from the account established in Minnesota Statutes, section 190.19. new text end

Sec. 4.

Minnesota Statutes 2007 Supplement, section 190.19, subdivision 2, is amended to read:

Subd. 2.

Uses.

(a) Money appropriated from the Minnesota "Support Our Troops" account new text begin to the Department of Military Affairs new text end may be used for:

(1) grants directly to eligible individuals;

(2) grants to one or more eligible foundations for the purpose of making grants to eligible individuals, as provided in this section; deleted text begin ordeleted text end

(3) veterans' servicesdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (4) grants to family readiness groups chartered by the adjutant general. new text end

(b) new text begin As used in paragraph (a), new text end the termdeleted text begin ,deleted text end "eligible individual" includes any person who is:

(1) a member of the Minnesota National Guard or a reserve unit based in Minnesota who has been called to active service as defined in section 190.05, subdivision 5;

(2) a Minnesota resident who is a member of a military reserve unit not based in Minnesota, if the member is called to active service as defined in section 190.05, subdivision 5;

(3) any other Minnesota resident performing active service for any branch of the military of the United States;

(4) a person who served in one of the capacities listed in clause (1), (2), or (3) who has current financial needs directly related to that service; and

(5) a member of the immediate family of an individual identified in clause (1), (2), (3), or (4). For purposes of this clause, "immediate family" means the individual's spouse and minor children and, if they are dependents of the member of the military, the member's parents, grandparents, siblings, stepchildren, and adult children.

(c) new text begin As used in paragraph (a), new text end the term "eligible foundation" includes any organization that:

(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;

(2) has articles of incorporation under chapter 317A specifying the purpose of the organization as including the provision of financial assistance to members of the Minnesota National Guard and other United States armed forces reserves and their families and survivors; and

(3) agrees in writing to distribute any grant money received from the adjutant general under this section to eligible individuals as defined in this section and in accordance with any written policies and rules the adjutant general may impose as conditions of the grant to the foundation.

(d) The maximum grant awarded to an eligible individual new text begin under paragraph (a) new text end in a calendar year with funds from the Minnesota "Support Our Troops" account, either through an eligible institution or directly from the adjutant general, may not exceed $2,000.

Sec. 5.

Minnesota Statutes 2006, section 190.25, subdivision 3, is amended to read:

Subd. 3.

Sale; use of funds.

The adjutant general is authorized to sell in the manner provided by law any or all

(1) land, and

(2) deleted text begin timber,deleted text end growing crops, buildings, and other improvements, if any, situated upon the land, acquired under the authority of subdivision 1 or which may hereafter comprise the Camp Ripley Military Field Training Center and not needed for military training purposes. The proceeds of any sales shall be deposited in the general fund.

The adjutant general may use funds that are directly appropriated for the acquisition of land, the payment of expenses of forest management on land forming the Camp Ripley Military Reservation, and the provision of an Enlisted Person's Service Center. If amounts that are directly appropriated for these purposes in either year of a biennium are insufficient, the appropriation for the other year of the biennium is available.

Sec. 6.

Minnesota Statutes 2006, section 190.25, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Timber sales; use of funds. new text end

new text begin The adjutant general is authorized to sell in the manner provided by law any or all timber on land acquired under the authority of subdivision 1 or which may hereafter comprise the Camp Ripley Military Field Training Center. The proceeds of any sales of timber under this subdivision must be deposited in an account in the special revenue fund and are appropriated to the adjutant general to be used to manage the timber resources of Camp Ripley in a manner consistent with the camp's purpose as lands for training armed forces. new text end

Sec. 7.

new text begin [192.341] STATE ENHANCED EMPLOYER SUPPORT OF GUARD AND RESERVE (ESGR) PROGRAM. new text end

new text begin The adjutant general is authorized to establish and administer a state enhancement to the federal Employer Support of Guard and Reserve (ESGR) Program. The adjutant general shall develop policy and guidelines for the administration of the program established under this section. new text end

Sec. 8.

Minnesota Statutes 2006, section 192.501, is amended by adding a subdivision to read:

new text begin Subd. 1c. new text end

new text begin Medic recertification bonus program. new text end

new text begin (a) The adjutant general may establish a program to provide a recertification bonus to eligible members of the Minnesota National Guard who recertify as emergency medical technicians (EMTs) in the National Guard within the limitations of this subdivision. The bonus payments are intended to generally encourage a member's continuing certification as an EMT. new text end

new text begin (b) Eligibility for the recertification bonus is limited to a member of the National Guard who: new text end

new text begin (1) is serving satisfactorily as determined by the adjutant general; and new text end

new text begin (2) has successfully completed the training required for recertification and warrants the payment of a bonus. new text end

new text begin (c) The adjutant general may, within the limitations of this subdivision and other applicable laws, determine additional eligibility criteria for the bonus, and must specify all of the criteria in regulations and publish changes as necessary. new text end

new text begin (d) Payments under this subdivision must be made on a schedule that is determined and published in department regulations by the adjutant general. new text end

Sec. 9.

Minnesota Statutes 2006, section 192.501, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Usage of tuition and textbook reimbursement grant program by spouse permitted. new text end

new text begin (a) Notwithstanding the eligibility limitations of subdivision 2, paragraph (b), the spouse of a person eligible under subdivision 2, paragraph (b), is eligible to use up to 12 semester hours per year, or the equivalent amount of quarter credits, of that eligible person's unused tuition reimbursement benefit for each year of service in the Minnesota National Guard after the eighth year of such service. new text end

new text begin (b) Total benefits under this subdivision cannot exceed the total unused portion of the service member's benefit. A service member's and spouse's eligibility for tuition reimbursement under this subdivision is limited by the provisions of subdivision 2, paragraph (g). new text end

Sec. 10.

new text begin STARBASE STUDY. new text end

new text begin The appropriation in Laws 2007, chapter 45, article 3, section 2, subdivision 3, for a longitudinal study measuring improvement in academic achievement as a result of participation in the Starbase program is available until June 30, 2009. The Department of Military Affairs must contract with the Wilder Foundation to conduct the study. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

new text begin NATIONAL GUARD YOUTH CHALLENGE PROGRAM STUDY. new text end

new text begin The adjutant general and the Department of Military Affairs shall study participation by the Minnesota National Guard in the National Guard Youth Challenge Program promoted by the National Guard Youth Foundation. The adjutant general shall report on the study and make recommendations to the governor and the committees of the senate and the house of representatives with jurisdiction over National Guard programs by January 15, 2009. The study must include: new text end

new text begin (1) possible locations for the Minnesota National Guard Youth Challenge Program; new text end

new text begin (2) estimated start-up costs for the program; new text end

new text begin (3) application and establishment procedures and resources required to apply for and establish the program; and new text end

new text begin (4) a survey of similar programs established in other states and how each state comes up with the state match required to obtain federal funds. new text end

ARTICLE 10

ECONOMIC DEVELOPMENT

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

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

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin (2,425,000) new text end new text begin $ new text end new text begin 1,512,000 new text end new text begin $ new text end new text begin (913,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

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

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2008 new text end new text begin 2009 new text end

Sec. 3.

new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin (3,000,000) new text end new text begin $ new text end new text begin 445,000 new text end

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

new text begin Subd. 2. new text end

new text begin Employment and Economic Development new text end

new text begin -0- new text end new text begin (550,000) new text end

new text begin This is an ongoing base reduction to the department's operating budget. This reduction must not result in layoffs. new text end

new text begin Subd. 3. new text end

new text begin Business and Community Development new text end

new text begin (3,000,000) new text end new text begin 800,000 new text end

new text begin (a) $400,000 in the second year is for the establishment and operation of the Office of Science and Technology. This is a onetime appropriation and is available until expended. new text end

new text begin (b) $400,000 in the second year is a onetime appropriation for transfer to the revolving loan account created in Minnesota Statutes, section 116J.996, subdivision 3, for the military reservist economic injury loan program, resulting from a call to active military duty. new text end

new text begin Subd. 4. new text end

new text begin Workforce Development new text end

new text begin -0- new text end new text begin 195,000 new text end

new text begin (a) $120,000 in the second year is for a grant to HIRED to operate its industry sector training initiatives, which provide employee training developed in collaboration with employers in specific, high-demand industries. This is a onetime appropriation. new text end

new text begin (b) $75,000 in the second year is for a grant to Lifetrack Resources for a onetime pilot project in Rochester focusing on immigrant and refugee collaborative programs, including those related to job-seeking skills and workplace orientation, intensive job development, functional work English, and on-site job coaching. This is a onetime appropriation and is available until expended. new text end

new text begin Subd. 5. new text end

new text begin Cancellations new text end

new text begin By July 31, 2008, the commissioner of finance shall cancel the unencumbered balance of the appropriation in Laws 2005, First Special Session chapter 3, article 10, section 23, to the foreign trade zone authority, estimated to be $608,000, to the general fund. new text end

new text begin By July 31, 2008, the commissioner of finance shall cancel $2,000,000 of the balance in the job skills partnership account to the general fund. new text end

new text begin Subd. 6. new text end

new text begin Transfers In new text end

new text begin By July 31, 2008, the commissioner of finance shall transfer the unencumbered balance of the appropriation in Laws 2005, First Special Session chapter 1, article 3, section 2, subdivision 2, for the methamphetamine laboratory cleanup revolving loan account in the public facilities authority fund, estimated to be $150,000, to the general fund. new text end

new text begin By July 31, 2008, the commissioner of finance shall transfer $8,000,000 of the unencumbered balance in the workforce development fund to the general fund. new text end

new text begin Subd. 7. new text end

new text begin Minnesota Minerals 21st Century Fund new text end

new text begin Notwithstanding Minnesota Statutes, section 116J.423, by June 30, 2009, the commissioner shall make a $1,000,000 grant and a $1,000,000 loan from the Minnesota Minerals 21st Century Fund to Magnetation, Inc. for reclamation of iron ore. new text end

Sec. 4.

new text begin LABOR AND INDUSTRY new text end

new text begin Subdivision 1. new text end

new text begin Base Reduction new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin (43,000) new text end

new text begin $43,000 in the second year is a base reduction. The commissioner must not reduce funding available for prevailing wage enforcement and must fill all positions when vacancies become available. new text end

new text begin Subd. 2. new text end

new text begin Transfers In new text end

new text begin new text end new text begin new text end

new text begin By June 30, 2009, the commissioner of finance shall transfer $2,000,000 from the construction code fund under Minnesota Statutes, section 326B.04, to the general fund. new text end

Sec. 5.

new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin (69,000) new text end

new text begin This is a base reduction. new text end

Sec. 6.

new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,299,000 new text end

new text begin (a) $1,299,000 is for a grant to the Minnesota Film and TV Board for the jobs production program under Minnesota Statutes, section 116U.26. This is a onetime appropriation and is in addition to any other appropriation for the jobs program under Minnesota Statutes, section 116U.26. This appropriation is available until expended. new text end

new text begin (b) $500,000 of the balance in the special marketing account established pursuant to Laws 2005, First Special Session chapter 1, article 3, section 6, must be used for a onetime grant to the Minnesota Film and TV Board for the production of a film in Minnesota in calendar years 2008 and 2009. The grant is in addition to any payments made for the same purpose from the film production jobs program under Minnesota Statutes, section 116U.26. This appropriation is available until expended. new text end

Sec. 7.

new text begin HOUSING FINANCE AGENCY new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin (200,000) new text end

new text begin This is a onetime reduction. new text end

Sec. 8.

new text begin MINNESOTA BOXING COMMISSION new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 80,000 new text end

new text begin This amount is added to the commission's or its successor's base budget. new text end

Sec. 9.

new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin $ new text end new text begin 575,000 new text end new text begin $ new text end new text begin -0- new text end

new text begin $575,000 in the first year is a onetime appropriation for the Minnesota Sesquicentennial Commission. The Minnesota Historical Society, the State Arts Board, and Explore Minnesota Tourism may assist the commission in designing and implementing the grants program. The commission shall encourage private contributions to match the state money to the greatest extent possible. Any gifts, pledges, membership fees, or contributions received by the commission are appropriated to the commission. This appropriation is available until June 30, 2009. new text end

Sec. 10.

new text begin [116J.996] MILITARY RESERVIST ECONOMIC INJURY LOANS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section. new text end

new text begin (b) "Active service" has the meaning given in section 190.05. new text end

new text begin (c) "Commissioner" means the commissioner of employment and economic development. new text end

new text begin (d) "Eligible business" means a small business, as defined in section 645.445, that was operating in Minnesota on the date a military reservist received orders for active service. new text end

new text begin (e) "Essential employee" means a military reservist who is an owner or employee of an eligible business and whose managerial or technical expertise is critical to the day-to-day operation of the eligible business. new text end

new text begin (f) "Military reservist" means a member of the reserve component of the armed forces. new text end

new text begin (g) "Reserve component of the armed forces" has the meaning given it in United States Code, title 10, section 101(c). new text end

new text begin (h) "Substantial economic injury" means an economic harm to an eligible business that results in the inability of the eligible business to: new text end

new text begin (1) meet its obligations as they mature; new text end

new text begin (2) pay its ordinary and necessary operating expenses; or new text end

new text begin (3) manufacture, produce, market, or provide a product or service ordinarily manufactured, produced, marketed, or provided by the eligible business. new text end

new text begin Subd. 2. new text end

new text begin Loan program. new text end

new text begin The commissioner may make onetime, interest-free loans of up to $20,000 per borrower to eligible businesses that have sustained or are likely to sustain substantial economic injury as a result of the call to active service for 180 days or more of an essential employee. Loans must be made for the purpose of preventing, remedying, or ameliorating the substantial economic injury. new text end

new text begin Subd. 3. new text end

new text begin Revolving loan account. new text end

new text begin The commissioner shall use money appropriated for the purpose to establish a revolving loan account. All repayments of loans made under this section must be deposited into this account. Interest earned on money in the account accrues to the account. Money in the account is appropriated to the commissioner for purposes of the loan program created in this section, including costs incurred by the commissioner to establish and administer the program. new text end

new text begin Subd. 4. new text end

new text begin Rules. new text end

new text begin Using the expedited rulemaking procedures of section 14.389, the commissioner shall develop and publish expedited rules for loan applications, use of funds, needed collateral, terms of loans, and other details of military reservist economic injury loans. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2006, section 116L.04, subdivision 1, is amended to read:

Subdivision 1.

Partnership program.

(a) The partnership program may provide grants-in-aid to educational or other nonprofit educational institutions using the following guidelines:

(1) the educational or other nonprofit educational institution is a provider of training within the state in either the public or private sector;

(2) the program involves skills training that is an area of employment need; and

(3) preference will be given to educational or other nonprofit training institutions which serve economically disadvantaged people, minorities, or those who are victims of economic dislocation and to businesses located in rural areas.

(b) A single grant to any one institution shall not exceed $400,000. A portion of a grant may be used for preemployment training.

new text begin (c) Each institution must provide for the dissemination of summary results of a grant-funded project, including, but not limited to, information about curriculum and all supporting materials developed in conjunction with the grant. Results of projects developed by any Minnesota State Colleges and Universities system institution must be disseminated throughout the system. new text end

Sec. 12.

Minnesota Statutes 2006, section 116L.05, subdivision 3, is amended to read:

Subd. 3.

Use of funds.

The Job Skills Partnership Board may use up to six percent of any funds it receives, regardless of the source, for activities authorized under section 116L.04, subdivision 2. new text begin The board may also use a portion of these funds to collect and disseminate information on the activities under section 116L.04, subdivision 2. The board must plan for the statewide dissemination of the results, curriculum, and supporting materials of these grant-funded projects.new text end

Sec. 13.

Minnesota Statutes 2006, section 116L.05, subdivision 5, is amended to read:

Subd. 5.

Use of workforce development funds.

After March 1 of any fiscal year, the board may use workforce development funds for the purposes outlined in sections 116L.04deleted text begin , 116L.06,deleted text end and 116L.10 to 116L.14, or to provide incumbent worker training services under section 116L.18 if the following conditions have been met:

(1) the board examines relevant economic indicators, including the projected number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of declining and expanding industries, the number of initial applications for and the number of exhaustions of unemployment benefits, job vacancy data, and any additional relevant information brought to the board's attention;

(2) the board accounts for all allocations made in section 116L.17, subdivision 2;

(3) based on the past expenditures and projected revenue, the board estimates future funding needs for services under section 116L.17 for the remainder of the current fiscal year and the next fiscal year;

(4) the board determines there will be unspent funds after meeting the needs of dislocated workers in the current fiscal year and there will be sufficient revenue to meet the needs of dislocated workers in the next fiscal year; and

(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative committees with jurisdiction over the workforce development fund, to the commissioners of revenue and finance, and to the public.

Sec. 14.

Minnesota Statutes 2006, section 116L.16, is amended to read:

116L.16 DISTANCE-WORK GRANTS.

The Job Skills Partnership Board may make grants-in-aid for distance-work projects. The purpose of the grants is to promote distance-work projects involving technology in rural areas and may include a consortium of organizations partnering in the development of rural technology industry. Grants may be used to identify and train rural workers in technology, act as a catalyst to bring together employers and rural employees to perform distance work, and provide rural workers with physical connections to telecommunications infrastructure, where necessary, in order to be self-employed or employed from their homes or satellite offices. Grants must be made according to sections 116L.02 and 116L.04, except that:

(1) the business match may include, but is not limited to, office space; additional management or technology staff costs; start-up equipment costs such as telecommunications infrastructure, additional software, or computer upgrades; consulting fees for implementation of distance-work policies or identification and skill assessment of potential employees; and the joint financial contribution of two or more businesses acting as a consortium;

(2) cash or in-kind contributions by partnering organizations may be used as a match;

(3) eligible grantees may be educational or nonprofit educational training organizations;new text begin and new text end

(4) deleted text begin grants-in-aid may be packaged with loans under section 116L.06, subdivision 6; anddeleted text end

deleted text begin (5)deleted text end with respect to grants serving as a catalyst to bring together employers and rural employees to perform distance work, the match must be at least one-to-two.

The board shall, to the extent there are sufficient applications, make grant awards to as many parts of the state as possible. Subject to the requirement for geographic distribution of grants, preference shall be given to grant applications that provide the most cost-effective training proposals, that provide the best prospects for high-paying jobs with high retention rates, or that are from more economically distressed rural areas or communities.

Grantees must meet reporting and evaluation requirements established by the board.

Sec. 15.

Minnesota Statutes 2007 Supplement, section 116L.17, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time employment ceased or was working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice of permanent separation from public or private sector employment and is eligible for or has exhausted entitlement to unemployment benefits, and is unlikely to return to the previous industry or occupation;

(2) has been long-term unemployed and has limited opportunities for employment or reemployment in the same or a similar occupation in the area in which the individual resides, including older individuals who may have substantial barriers to employment by reason of age;

(3) has been terminated or has received a notice of termination of employment as a result of a plant closing or a substantial layoff at a plant, facility, or enterprise;

(4) has been self-employed, including farmers and ranchers, and is unemployed as a result of general economic conditions in the community in which the individual resides or because of natural disasters;

(5) has been permanently separated from employment in a restaurant, bar, or lawful gambling organization from October 1, 2007, to October 1, 2009, due to the implementation of any state law prohibiting smoking; deleted text begin ordeleted text end

new text begin (6) is a veteran as defined by section 197.447, has been discharged or released from active duty under honorable conditions within the last 36 months, and (i) is unemployed or (ii) is employed in a job verified to be below the skill level and earning capacity of the veteran; or new text end

deleted text begin (6)deleted text end new text begin (7) new text end is a displaced homemaker. A "displaced homemaker" is an individual who has spent a substantial number of years in the home providing homemaking service and (i) has been dependent upon the financial support of another; and now due to divorce, separation, death, or disability of that person, must find employment to self support; or (ii) derived the substantial share of support from public assistance on account of dependents in the home and no longer receives such support.

To be eligible under this clause, the support must have ceased while the worker resided in Minnesota.

(d) "Eligible organization" means a state or local government unit, nonprofit organization, community action agency, business organization or association, or labor organization.

(e) "Plant closing" means the announced or actual permanent shutdown of a single site of employment, or one or more facilities or operating units within a single site of employment.

(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a result of a plant closing, and which results in an employment loss at a single site of employment during any 30-day period for at least 50 employees excluding those employees that work less than 20 hours per week.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2006, section 116L.20, subdivision 2, is amended to read:

Subd. 2.

Disbursement of special assessment funds.

(a) The money collected under this section shall be deposited in the state treasury and credited to the workforce development fund to provide for employment and training programs. The workforce development fund is created as a special account in the state treasury.

(b) All money in the fund not otherwise appropriated or transferred is appropriated to the Job Skills Partnership Board for the purposes of section 116L.17 and as provided for in paragraph (d). The board must act as the fiscal agent for the money and must disburse that money for the purposes of section 116L.17, not allowing the money to be used for any other obligation of the state. All money in the workforce development fund shall be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as are provided by law for the other special accounts in the state treasury, except that all interest or net income resulting from the investment or deposit of money in the fund shall accrue to the fund for the purposes of the fund.

(c) Reimbursement for costs related to collection of the special assessment shall be in an amount negotiated between the commissioner and the United States Department of Labor.

(d) If the board determines that the conditions of section 116L.05, subdivision 5, have been met, the board may use funds for the purposes outlined in sections 116L.04deleted text begin , 116L.06,deleted text end and 116L.10 to 116L.14, or to provide incumbent worker training services under section 116L.18.

Sec. 17.

Minnesota Statutes 2006, section 116U.26, is amended to read:

116U.26 FILM JOBS PRODUCTION PROGRAM.

(a) The film production jobs program is created. The program shall be operated by the Minnesota Film and TV Board with administrative oversight and control by the director of Explore Minnesota Tourism. The program shall make payment to producers of feature films, national television new text begin or Internet new text end programs, documentaries, music videos, and commercials that directly create new film jobs in Minnesota. To be eligible for a payment, a producer must submit documentation to the Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota that are directly attributable to the production in Minnesota of a film product.

The Minnesota Film and TV Board shall make recommendations to the director of Explore Minnesota Tourism about program payment, but the director has the authority to make the final determination on payments. The director's determination must be based on proper documentation of eligible production costs submitted for payments. No more than five percent of the funds appropriated for the program in any year may be expended for administration.

(b) For the purposes of this section:

(1) "production costs" means the cost of the following:

(i) a story and scenario to be used for a film;

(ii) salaries of talent, management, and labor, including payments to personal services corporations for the services of a performing artist;

(iii) set construction and operations, wardrobe, accessories, and related services;

(iv) photography, sound synchronization, lighting, and related services;

(v) editing and related services;

(vi) rental of facilities and equipment; or

(vii) other direct costs of producing the film in accordance with generally accepted entertainment industry practice; and

(2) "film" means a deleted text begin moviedeleted text end new text begin feature filmnew text end , television new text begin or Internet new text end show, documentary, music video, or television commercial, whether on film deleted text begin ordeleted text end new text begin ,new text end videonew text begin , or digital medianew text end . Film does not include news, current events, public programming, or a program that includes weather or market reports; a talk show; a production with respect to a questionnaire or contest; a sports event or sports activity; a gala presentation or awards show; a finished production that solicits funds; or a production for which the production company is required under United States Code, title 18, section 2257, to maintain records with respect to a performer portrayed in a single-media or multimedia program.

new text begin (c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board may make reimbursements of up to 20 percent of film production costs for films that incur production costs in excess of $5,000,000 in Minnesota within a 12-month period. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for films that are certified by the Minnesota Film and TV Board on or after the day following final enactment. new text end

Sec. 18.

Minnesota Statutes 2006, section 298.223, subdivision 2, is amended to read:

Subd. 2.

Administration.

new text begin (a) new text end The taconite area environmental protection fund shall be administered by the commissioner of the Iron Range Resources and Rehabilitation Board. The commissioner shall by September 1 of each year submit to the board a list of projects to be funded from the taconite area environmental protection fund, with such supporting information including description of the projects, plans, and cost estimates as may be necessary.

new text begin (b) Each year no less than one-half of the amounts deposited into the taconite environmental protection fund must be used for public works projects, including construction of sewer and water systems, as specified under subdivision 1, paragraph (c). The Iron Range Resources and Rehabilitation Board with a majority vote of the members, may waive the requirements of this paragraph. new text end

new text begin (c) new text end Upon approval by a majority of the members of the Iron Range Resources and Rehabilitation Board, deleted text begin thisdeleted text end new text begin the new text end listnew text begin of projects approved under this subdivisionnew text end shall be submitted to the governor by November 1 of each year. By December 1 of each year, the governor shall approve or disapprove, or return for further consideration, each project. Funds for a project may be expended only upon approval of the project by the board and governor. The commissioner may submit supplemental projects to the board and governor for approval at any time.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning in 2009. new text end

Sec. 19.

Minnesota Statutes 2006, section 298.28, subdivision 9d, as added by Laws 2008, chapter 154, article 8, section 9, is amended to read:

Subd. 9d.

Iron Range higher education account.

deleted text begin Twodeleted text end new text begin Five new text end cents per taxable ton must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron Range higher education account that is hereby created, to be used for higher education programs conducted at educational institutions in the taconite assistance area defined in section 273.1341. The Iron Range Higher Education committee under section 298.2214 and the Iron Range Resources and Rehabilitation Board must approve all expenditures from the account.

Sec. 20.

Minnesota Statutes 2006, section 298.292, subdivision 2, as amended by Laws 2008, chapter 154, article 8, section 11, is amended to read:

Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation with private sources of financing, but a loan to a private enterprise shall be for a principal amount not to exceed one-half of the cost of the project for which financing is sought, and the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight percent or an interest rate three percentage points less than a full faith and credit obligation of the United States government of comparable maturity, at the time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the principal of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump sum payment any or all of the interest on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or retrofitting heating facilities in connection with district heating systems or systems utilizing alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other entities that are engaging in, or that will engage in, projects or programs that have the purposes set forth in subdivision 1. No investments may be made in a venture capital fund or enterprise unless at least two other unrelated investors make investments of at least $500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. Johnson economic protection trust fund may not exceed the amount of the largest investment by an unrelated investor in the venture capital fund or enterprise. For purposes of this subdivision, an "unrelated investor" is a person or entity that is not related to the entity in which the investment is made or to any individual who owns more than 40 percent of the value of the entity, in any of the following relationships: spouse, parent, child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of the value of all interests in it. For purposes of determining the limitations under this clause, the amount of investments made by an investor other than the Douglas J. Johnson economic protection trust fund is the sum of all investments made in the venture capital fund or enterprise during the period beginning one year before the date of the investment by the Douglas J. Johnson economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to be held and managed as a public trust for the benefit of the area for the purposes authorized in section 298.22, subdivision 5a. new text begin Property purchased under this section may be sold by the commissioner upon approval by a majority vote of the board. The net proceeds must be deposited in the trust fund for the purposes and uses of this section.new text end

Money from the trust fund shall be expended only in or for the benefit of the taconite assistance area defined in section 273.1341.

Sec. 21.

Minnesota Statutes 2006, section 298.2961, subdivision 2, is amended to read:

Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects;new text begin ornew text end

(2) pit or plant repairs, expansions, or modernizations other than for a value added iron products plantdeleted text begin ; ordeleted text end new text begin .new text end

deleted text begin (3) haulage trucks and equipment and mining shovels. deleted text end

(b) To be proposed by the board, a project must be approved by at least eight Iron Range Resources and Rehabilitation Board members. The money for a project may be spent only upon approval of the project by the governor. The board may submit supplemental projects for approval at any time.

(c) The board may require that it receive an equity percentage in any project to which it contributes under this section.

Sec. 22.

Minnesota Statutes 2006, section 446A.12, subdivision 1, is amended to read:

Subdivision 1.

Bonding authority.

The authority may issue negotiable bonds in a principal amount that the authority determines necessary to provide sufficient funds for achieving its purposes, including the making of loans and purchase of securities, the payment of interest on bonds of the authority, the establishment of reserves to secure its bonds, the payment of fees to a third party providing credit enhancement, and the payment of all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers, but not including the making of grants. Bonds of the authority may be issued as bonds or notes or in any other form authorized by law. The principal amount of bonds issued and outstanding under this section at any time may not exceed $1,500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds have been issueddeleted text begin .deleted text end new text begin , and excluding any bonds issued for the credit enhanced bond program or refunding or crossover refunding bonds issued under the program. The principal amount of bonds issued and outstanding under section 446A.087, may not exceed $500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds have been issued.new text end

Sec. 23.

Minnesota Statutes 2006, section 462A.22, subdivision 1, is amended to read:

Subdivision 1.

Debt ceiling.

The aggregate principal amount of bonds and notes which are outstanding at any time, excluding the principal amount of any bonds and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of deleted text begin $3,000,000,000deleted text end new text begin $5,000,000,000new text end .

Sec. 24.

Laws 1999, chapter 223, article 2, section 72, is amended to read:

Sec. 72.

UPPER RED LAKE BUSINESS LOAN PROGRAM.

The commissioner of trade and economic development must make loans to businesses in the Upper Red Lake area that have been severely affected by the significant decline of the walleye fishing resource in Upper Red Lake. The loans may only be made to businesses that operated in 1998. A business must submit an application to the commissioner on forms provided by the commissioner. The application must include a business plan for continued operation, with the assistance of the loan, until the walleye fishing resource recovers. The commissioner shall allocate available loan funds to a business based on the commissioner's evaluation of the probable success of its business plan. A loan shall be for a maximum amount of $75,000 and a duration of ten years from the date of the loan and shall be interest free. Repayment of a loan in monthly payments of 1/120 of the original principal amount must begin no later than one year after walleye fishing on Upper Red Lake is deleted text begin allowed by the department of natural resourcesdeleted text end new text begin recovered to a bag limit of sixnew text end . Any principal balance remaining at the end of the ten-year period shall be forgiven if the business continues in operation for the ten-year period. Loan repayments shall be deposited in the general fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

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

Subd. 2.

Business and Community Development

40,667,000 8,639,000
Appropriations by Fund
General 39,967,000 7,939,000
Remediation 700,000 700,000

(a) (1) $250,000 the first year and $250,000 the second year are from the general fund for a grant under Minnesota Statutes, section 116J.421, to the Rural Policy and Development Center at St. Peter, Minnesota. The grant shall be used for research and policy analysis on emerging economic and social issues in rural Minnesota, to serve as a policy resource center for rural Minnesota communities, to encourage collaboration across higher education institutions to provide interdisciplinary team approaches to research and problem-solving in rural communities, and to administer overall operations of the center.

(2) The grant shall be provided upon the condition that each state-appropriated dollar be matched with a nonstate dollar. Acceptable matching funds are nonstate contributions that the center has received and have not been used to match previous state grants. Any unencumbered balance in the first year is available for the second year.

(b) $250,000 the first year and $250,000 the second year are from the general fund for a grant to WomenVenture for women's business development programs.

(c) $250,000 the first year is for a grant to University Enterprise Laboratories (UEL) for its direct and indirect expenses to support efforts to encourage the growth of early-stage and emerging bioscience companies. UEL must provide a report by June 30 each year to the commissioner on the expenditures until the appropriation is expended. This is a onetime appropriation and is available until expended.

(d) $2,000,000 the first year is for grants under Minnesota Statutes, section 116J.571, for the redevelopment grant program. This is a onetime appropriation.

(e) $100,000 the first year and $100,000 the second year are to help small businesses access federal funds through the federal Small Business Innovation Research Program and the federal Small Business Technology Transfer Program. Department services must include maintaining connections to 11 federal programs, assessment of specific funding opportunities, review of funding proposals, referral to specific consulting services, and training workshops throughout the state. Unless prohibited by federal law, the department must implement fees for services that help companies seek federal Phase II Small Business Innovation Research grants. The recommended fee schedule must be reported to the chairs of the house of representatives finance committee and senate budget division with jurisdiction over economic development by February 1, 2008.

(f) $100,000 the first year and $100,000 the second year are appropriated to the Public Facilities Authority for the small community wastewater treatment program under Minnesota Statutes, chapter 446A.

(g) $255,000 the first year and $155,000 the second year are from the general fund for a grant to the Metropolitan Economic Development Association for continuing minority business development programs in the metropolitan area.

(h) $85,000 the first year and $85,000 the second year are for grants to the Minnesota Inventors Congress. Of this amount, $10,000 each year is for the Student Inventors Congress.

(i) $151,000 the first year is for a onetime grant to the city of Faribault to design, construct, furnish, and equip renovations to accommodate handicapped accessibility at the Paradise Center for the Arts.

(j) $750,000 the first year is to Minnesota Technology, Inc. for the small business growth acceleration program established under Minnesota Statutes, section 116O.115. This is a onetime appropriation.new text begin This appropriation does not cancel, but is available until June 30, 2011.new text end

(k) $300,000 the first year is for a onetime grant to the city of Northome for the construction of a new municipal building to replace the structures damaged by fire on July 22, 2006. This appropriation is available when the commissioner determines that a sufficient match is available from nonstate sources to complete the project.

(l) $300,000 the first year is for a grant to the city of Worthington for an agricultural-based bioscience training and testing center. Funds appropriated under this section must be used to provide a training and testing facility for incubator firms developing new agricultural processes and products. This is a onetime appropriation and is available until expended.

(m) $1,750,000 the first year is for a onetime grant to BioBusiness Alliance of Minnesota for bioscience business development programs to promote and position the state as a global leader in bioscience business activities. These funds may be used for:

(1) completion and periodic updating of a statewide bioscience business industry assessment of business technology enterprises and Minnesota's competitive position employing annual updates to federal industry classification data;

(2) long-term strategic planning that includes projections of market changes resulting from developments in biotechnology and the development of 20-year goals, strategies, and identified objectives for renewable energy, medical devices, biopharma, and biologics business development in Minnesota;

(3) the design and construction of a Minnesota focused bioscience business model to test competing strategies and scenarios, evaluate options, and forecast outcomes; and

(4) creation of a bioscience business resources network that includes development of a statewide bioscience business economic development framework to encourage bioscience business development and encourage spin-off activities, attract bioscience business location or expansion in Minnesota, and establish a local capability to support strategic system level planning for industry, government, and academia.

This appropriation is available until June 30, 2009.

(n) $125,000 the first year is to develop and operate a bioscience business marketing program to market Minnesota bioscience businesses and business opportunities to other states and other countries. The bioscience business marketing program must emphasize bioscience business location and expansion opportunities in communities outside of the seven-county metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, that have established collaborative plans among two or more municipal units for bioscience business activities, and that are within 15 miles of a four-year, baccalaureate degree granting institution or a two-year technical or community college that offers bioscience curricula. The commissioner must report to the committees of the senate and house of representatives having jurisdiction over bioscience and technology issues by February 1 of each year on the expenditures of these funds and the promotional activities undertaken to market the Minnesota bioscience industry to persons outside of the state. This is a onetime appropriation and is available until expended.

(o) $325,000 is for a grant to the Walker Area Community Center, Inc., to construct, furnish, and equip the Walker Area Community Center. This appropriation is not available until the commissioner has determined that an amount sufficient to complete the project has been committed from nonstate sources. This is a onetime appropriation and is available until expended.

(p) $100,000 the first year is for a grant to the Pine Island Economic Development Authority for predesign to upgrade and extend utilities to serve Elk Run Bioscience Research Park and The Falls - Healthy Living By Nature, an integrated medicine facility. This is a onetime appropriation and is available until expended.

(q) $350,000 the first year is for a grant to Thomson Township for infrastructure improvements for the industrial park. This is a onetime appropriation and is available until expended.

(r) $75,000 the first year is for a grant to Le Sueur County for the cost of cleaning up debris from lakes in Le Sueur County, caused by the August 24, 2006, tornado in southern Le Sueur County. This is a onetime appropriation and is available until expended.

(s) $400,000 the first year is for a grant to the city of Rogers to be used for relief from damages caused by the September 16, 2006, tornado.

(t) $75,000 the first year is for a grant to the city of Warroad for new public facilities to replace those damaged or destroyed by the August 2006 tornado, including approximately 28 new street lights and underground electrical circuits and a new fish cleaning house. This is a onetime appropriation and is available until expended. If an appropriation for this purpose is enacted more than once in the 2007 session, the appropriation is effective only once.

(u) $500,000 the first year is for a grant to the Upper Sioux Community to improve the current water system to ensure continuity of service to the entire population of the community and to meet the demands of the community expansion over the next 20 years. The is a onetime appropriation and is not available until the Public Facilities Authority has determined that at least $1,000,000 has been committed from nonstate sources. This appropriation is available until expended. * (The preceding text beginning "(u) $500,000 the first year is for" was indicated as vetoed by the governor.)

(v) $755,000 the first year is for the urban challenge grant program under Minnesota Statutes, section 116M.18. This is a onetime appropriation.

(w) $1,100,000 is for a grant to the Neighborhood Development Center for assistance necessary to retain minority business enterprises at the Global Market. This is a onetime appropriation and is available until expended.

(x) $350,000 the first year is for a onetime grant to the city of Inver Grove Heights to reduce debt on the Inver Grove Heights Veterans Memorial Community Center. * (The preceding text beginning "(x) $350,000 the first year is for" was indicated as vetoed by the governor.)

(y) $14,900,000 the first year is for the Minnesota minerals 21st century fund created in Minnesota Statutes, section 116J.423, to partially restore the money unallotted by the commissioner of finance in 2003 pursuant to Minnesota Statutes, section 16A.152. This appropriation may be used as provided in Minnesota Statutes, section 116J.423, subdivision 2. This appropriation is available until expended.

(z) $2,500,000 the first year is for a grant to the city of St. Paul to be used to pay, redeem, or refund debt service costs incurred for the River Centre Campus. * (The preceding text beginning "(z) $2,500,000 the first year is for" was indicated as vetoed by the governor.)

(aa) $147,000 each year is appropriated from the general fund to the commissioner of employment and economic development for grants of $49,000 to eligible organizations each year and for the purposes of this paragraph. Each state grant dollar must be matched with $1 of nonstate funds. Any balance in the first year does not cancel but is available in the second year. The base for these grants in fiscal years 2010 and 2011 is $189,000 each year, with each eligible organization receiving a $63,000 grant each year.

The commissioner of employment and economic development must make grants to organizations to assist in the development of entrepreneurs and small businesses. Three grants must be awarded to continue or to develop a program. One grant must be awarded to the Riverbend Center for Entrepreneurial Facilitation in Blue Earth County, and two to other organizations serving Faribault and Martin Counties. Grant recipients must report to the commissioner by February 1 of each year that the organization receives a grant with the number of customers served; the number of businesses started, stabilized, or expanded; the number of jobs created and retained; and business success rates. The commissioner must report to the house of representatives and senate committees with jurisdiction over economic development finance on the effectiveness of these programs for assisting in the development of entrepreneurs and small businesses.

(bb) deleted text begin $5,000,000deleted text end new text begin $2,000,000new text end the first year is for grants under Minnesota Statutes, section 116J.8731, for the Minnesota investment fund program. Of this amount, deleted text begin up to $3,000,000 may be used for a legal reference office and data center facility, provided that the total capital investment in the facility is at least $60,000,000. This grant is not subject to grant limitations under Minnesota Statutes, section 116J.8731, subdivision 5deleted text end new text begin $1,000,000 must be used for the biomass heating grants and loans pilot projectnew text end . This is a onetime appropriationnew text begin and is available in either year of the bienniumnew text end .

Sec. 26.

Laws 2007, chapter 135, article 1, section 3, subdivision 3, is amended to read:

Subd. 3.

Workforce Development

50,024,000 49,833,000
Appropriations by Fund
General 33,529,000 33,338,000
Workforce Development 16,495,000 16,495,000

(a) $6,785,000 the first year and $6,785,000 the second year are from the general fund for the Minnesota job skills partnership program under Minnesota Statutes, sections 116L.01 to 116L.17. If the appropriation for either year is insufficient, the appropriation for the other year is available for it. This appropriation does not cancel.

(b) $455,000 the first year and $455,000 the second year are from the general fund for a grant under Minnesota Statutes, section 116J.8747, to Twin Cities RISE! to provide training to hard-to-train individuals.

(c) $1,375,000 each year is from the workforce development fund for Opportunities Industrialization Center programs.

(d) $5,614,000 each year is from the general fund and $6,920,000 each year is from the workforce development fund for extended employment services for persons with severe disabilities or related conditions under Minnesota Statutes, section 268A.15. Of this, $125,000 each year and in the base for fiscal years 2010 and 2011 is to supplement funds paid for wage incentives for the community support fund established in Minnesota Rules, part 3300.2045. new text begin The commissioner shall not reduce total expenditures from these appropriations.new text end

(e) $1,650,000 the first year and $1,650,000 the second year are from the general fund for grants for programs that provide employment support services to persons with mental illness under Minnesota Statutes, sections 268A.13 and 268A.14. Up to $77,000 each year may be used for administrative and salary expenses.

(f) $2,440,000 the first year and $2,440,000 the second year are from the general fund for grants under Minnesota Statutes, section 268A.11, for the eight centers for independent living. The base for this program is $2,440,000 each year in fiscal years 2010 and 2011. Money not expended the first year is available the second year.

The commissioner must:

(1) transfer $115,000 of federal independent living Part B rehabilitation services funds to the Minnesota Centers for Independent Living each year contingent upon the availability of federal funds under Title VII, Part B, of the Federal Rehabilitation Act of 1973 as amended under United States Code, title 29, section 711(c), and approved by the Statewide Independent Living Council;

(2) replace federal Part B funds in the State Independent Living Council budget transferred under clause (1) with $115,000 of Social Security Administration program income funds each year; and

(3) provide an additional $185,000 each year from the Social Security Administration program income to the Minnesota Centers for Independent Living to be allocated equally among the eight centers.

Additional funding for centers for independent living under clauses (1) and (3) must be used for core independent living services by the Centers for Independent Living. The Statewide Independent Living Council framework for statewide distribution of state and federal funding to the Minnesota Centers for Independent Living does not apply to the funds under clauses (1) and (3). The commissioner must report on the transfers in clauses (1), (2), and (3), and any other effort to pursue additional funding for the Centers for Independent Living to the standing committees of the senate and house of representatives having jurisdiction over Centers for Independent Living by March 15 each year.

(g) $5,940,000 the first year and $5,940,000 the second year are from the general fund for state services for the blind activities.

(h) $150,000 the first year and $150,000 the second year are from the general fund and $175,000 the first year and $175,000 the second year are from the workforce development fund for grants under Minnesota Statutes, section 268A.03, to Rise, Inc. for the Minnesota Employment Center for People Who are Deaf or Hard-of-Hearing. Money not expended the first year is available the second year.

(i) $9,021,000 the first year and $9,021,000 the second year are from the general fund for the state's vocational rehabilitation program for people with significant disabilities to assist with employment, under Minnesota Statutes, chapter 268A.

(j) $350,000 the first year and $350,000 the second year are from the workforce development fund for grants to provide interpreters for a regional transition program that specializes in providing culturally appropriate transition services leading to employment for deaf, hard-of-hearing, and deaf-blind students. This amount must be added to the department's base.

(k) $150,000 the first year and $150,000 the second year are for a grant to Advocating Change Together for training, technical assistance, and resources materials to persons with developmental and mental illness disabilities.

(l) $250,000 the first year and $250,000 the second year are from the workforce development fund and $150,000 the first year and $100,000 the second year are from the general fund for a grant to Lifetrack Resources for its immigrant and refugee collaborative programs, including those related to job-seeking skills and workplace orientation, intensive job development, functional work English, and on-site job coaching. $50,000 of the first year general fund appropriation is for a onetime pilot Lifetrack project in Rochester.

(m) $75,000 the first year and $75,000 the second year are from the general fund and $1,000,000 the first year and $1,000,000 the second year are from the workforce development fund for the youthbuild program under Minnesota Statutes, sections 116L.361 to 116L.366. This appropriation may be used for:

(1) restoring the three youthbuild programs that were eliminated due to budget reductions and adding seven more youthbuild programs statewide;

(2) restoring funding levels for all youthbuild programs plus an inflationary increase for each program;

(3) increasing the number of at-risk youth served by the youthbuild programs from 260 youth per year to 500 youth per year; and

(4) restoring the youthbuild focus on careers in technology and adding a youthbuild focus on careers in the medical field.

(n) $1,325,000 each year is from the workforce development fund for grants to fund summer youth employment in Minneapolis. The grants shall be used to fund up to 500 jobs for youth each summer. Of this appropriation, $325,000 each year is for a grant to the learn-to-earn summer youth employment program. The commissioner shall establish criteria for awarding the grants. This appropriation is available in either year of the biennium and is available until spent.

(o) $600,000 the first year and $600,000 the second year are from the workforce development fund for a grant to the city of St. Paul for grants to fund summer youth employment in St. Paul. The grants shall be used to fund up to 500 jobs for youth each summer. The commissioner shall establish criteria for awarding the grants within the city of St. Paul. This appropriation is available in either year of the biennium and is available until spent.

(p) $250,000 the first year and $250,000 the second year are from the general fund for grants to Northern Connections in Perham to implement and operate a pilot workforce program that provides one-stop supportive services to individuals as they transition into the workforce.

(q) $100,000 each year is for a grant to Ramsey County Workforce Investment Board for the development of the building lives program. This is a onetime appropriation. * (The preceding text beginning "(q) $100,000 each year is for" was indicated as vetoed by the governor.)

(r) $150,000 each year is for a grant to the Hennepin-Carver Workforce Investment Board (WIB) to coordinate with the Partners for Progress Regional Skills Consortium to provide employment and training as demonstrated by the Twin Cities regional health care training partnership project. * (The preceding text beginning "(r) $150,000 each year is for" was indicated as vetoed by the governor.)

(s) $160,000 the first year is for a onetime grant to Workforce Development, Inc., for a pilot project to provide demand-driven employment and training services to welfare recipients and other economically disadvantaged populations in Mower, Freeborn, Dodge, and Steele Counties.

(t) $200,000 the first year and $200,000 the second year are from the general fund for a grant to HIRED to operate its industry sector training initiatives, which provide employee training developed in collaboration with employers in specific, high-demand industries. * (The preceding text beginning "(t) $200,000 the first year" was indicated as vetoed by the governor.)

(u) $100,000 the first year is for a onetime grant to a nonprofit organization. The nonprofit organization must work on behalf of all licensed vendors to coordinate their efforts to respond to solicitations or other requests from private and governmental units as defined in Minnesota Statutes, section 471.59, subdivision 1, in order to increase employment opportunities for persons with disabilities. new text begin This appropriation is available until June 30, 2009.new text end

(v) $3,500,000 each year from the workforce development fund is for the Minnesota youth program under Minnesota Statutes, sections 116L.56 and 116L.561.

(w) $1,000,000 each year from the workforce development fund is for a grant to the Minnesota Alliance of Boys and Girls Clubs to administer a statewide project of youth job skills development. This project, which may have career guidance components, including health and life skills, is to encourage, train, and assist youth in job-seeking skills, workplace orientation, and job site knowledge through coaching. This grant requires a 25 percent match from nonstate resources.

(x) $10,000 the first year is for a study on ways to promote employment opportunities for minorities, with a particular focus on opportunities for African Americans, in the state of Minnesota. The study should focus on how to significantly expand the job training available to minorities and promote substantial increases in the wages paid to minorities, at least to a rate well above living wage, and within several years, to equality. The commissioner must report on the study to the governor and the chair of the finance committee in each house of the legislature that has jurisdiction over employment by January 15, 2008, with recommendations for implementing the findings.

(y) The commissioner must provide funding for the Minnesota Conservation Corps to provide learning stipends for deaf students and wages for interpreters participating in the MCC summer youth program.

Sec. 27.

Laws 2007, chapter 135, article 1, section 6, subdivision 4, is amended to read:

Subd. 4.

Labor Standards/Apprenticeship

1,833,000 1,803,000
Appropriations by Fund
General 1,069,000 1,024,000
Workforce Development 764,000 779,000

The appropriation from the workforce development fund is for the apprenticeship program under Minnesota Statutes, chapter 178, and includes $100,000 each year for labor education and advancement program grants.

$360,000 the first year and $300,000 the second year from the general fund are for prevailing wage enforcement of which $60,000 in the first year is for outreach and survey participation improvementsnew text begin , and is available until expendednew text end .

Sec. 28.

Laws 2007, First Special Session chapter 2, article 1, section 8, subdivision 2, is amended to read:

Subd. 2.

Minnesota Investment Fund

35,000,000

For transfer to the Minnesota investment fund for grants to local units of government for locally administered grants or loan programs for businesses and nonprofit organizations directly and adversely affected by the flood, including those that provide residential, health care, child care, social, or other services on behalf of the Department of Human Services to residents of the area included in DR-1717. Assistance under this subdivision is not limited to businesses.

Payments may be made for property damage and cleanup, and to reimburse parties under contract, provider agreement, or other arrangement with the commissioner of human services as of August 18, 2007, for residential, health care, child care, social, or other services provided on behalf of the Department of Human Services to a resident of the area included in DR-1717, notwithstanding that:

(1) the resident has been compelled by the floods of August 2007 to relocate outside the party's service area; or

(2) the party is unable to provide services to the resident due to flood damage to the party's place of business.

Criteria and requirements must be locally established with the approval of the commissioner. For the purposes of this appropriation, Minnesota Statutes, sections 116J.8731, subdivisions 3, 4, 5, and 7; 116J.993; 116J.994; and 116J.995, are waived. Businesses that receive grants or loans from this appropriation must set goals for jobs retained and wages paid within the area included in DR-1717.

Before any grants under this subdivision are awarded to a local unit of government, the commissioner of employment and economic development shall report to the chairs of the senate finance and house of representatives ways and means committees the criteria and requirements to be used by local units of government in the grant or loan programs they will administer. This appropriation is from the general fund.

new text begin Any money transferred to the commissioner of natural resources to provide high-resolution digital elevation maps using Light Detection and Ranging (LiDAR) technology to be used for flood management is available until June 30, 2009. new text end

Sec. 29.

new text begin BIOMASS HEATING GRANTS AND LOANS PILOT PROJECT. new text end

new text begin Within the limits of appropriations, the commissioner of the Department of Employment and Economic Development shall make grants and loans for costs related to the installation of an approved biomass heating project in a publicly owned facility, including K-12 public schools, higher education buildings, and buildings owned by a local unit of government. The commissioner must approve biomass heating projects that produce energy for heating air or water using organic matter available on a renewable basis, including but not limited to agricultural crops, grasses and trees, or wood production or other waste. Applications for a grant or loan under this section must be made to the commissioner on the forms and according to the timeline prescribed by the commissioner. At a minimum, the commissioner must require sufficient information on the applications to determine that the physical condition of the publicly owned facility is sufficient to support the efficient operation of the biomass heating project and that the projected cumulative energy cost savings are adequate relative to the costs of the investment. The grant and loan may each provide up to 50 percent of the total installed costs of the biomass heating projects. new text end

Sec. 30.

new text begin HARDSHIP PAYMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Payments; availability. new text end

new text begin Hardship payments are available to an applicant if the applicant suffered economic hardship due to delays in receiving unemployment benefits resulting from the new unemployment insurance application and filing system implemented by the Department of Employment and Economic Development on October 15, 2007. new text end

new text begin Subd. 2. new text end

new text begin Economic hardship. new text end

new text begin "Economic hardship" means financial losses to an applicant resulting from: checks returned for insufficient funds; account overdraft charges; installment credit penalties, interest, and other fees resulting from missed or late payments; mortgage loan late fees, interest charges, or other penalties; charges for force-placed automobile or homeowner's insurance; penalties for late payment of income or property taxes; and any penalties or adverse consequences, including the suspension of an applicant's driver's license due to nonpayment of child support. new text end

new text begin Subd. 3. new text end

new text begin Payment from administration account. new text end

new text begin Hardship payments are payable from the unemployment insurance administration account under Minnesota Statutes, section 268.196. new text end

new text begin Subd. 4. new text end

new text begin Eligibility conditions. new text end

new text begin An applicant is eligible to receive hardship payments under this section if the applicant's unemployment benefit payments due and payable after October 15, 2007, were delayed at least four weeks. new text end

new text begin Subd. 5. new text end

new text begin Amount of hardship payments. new text end

new text begin The amount of hardship payments available to an applicant is equal to the amount of economic hardship experienced by an applicant due to the delay in receiving unemployment benefits. An applicant must provide documentation of the amount of financial hardship claimed using financial institution records, consumer or business credit records, child support records, or other commonly recognized methods of documenting financial transactions. new text end

new text begin Subd. 6. new text end

new text begin Notice. new text end

new text begin The commissioner must notify applicants of the availability of hardship payments by posting a notice on the department's official Web site, by notifying applicants by individual mailing where department records show the applicant may be eligible under subdivision 4, and by any other appropriate announcement. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

new text begin LUMBER COMPANY EXTRA BENEFITS. new text end

new text begin Subdivision 1. new text end

new text begin Extra benefits; availability. new text end

new text begin Extra unemployment benefits are available to an applicant who was laid off due to lack of work from the Ainsworth Lumber Company plant in Cook, Minnesota. new text end

new text begin Subd. 2. new text end

new text begin Payment from fund; effect on employer. new text end

new text begin Extra unemployment benefits are payable from the unemployment insurance trust fund. Extra unemployment benefits paid will not be used in computing the experience rating of Ainsworth Lumber Company under Minnesota Statutes, sections 268.047 and 268.051, subdivision 3. new text end

new text begin Subd. 3. new text end

new text begin Eligibility conditions. new text end

new text begin An applicant is eligible to receive extra unemployment benefits under this section for any week through December 27, 2008, if: new text end

new text begin (1) the applicant established a benefit account under Minnesota Statutes, section 268.07, with a majority of the wage credits from Ainsworth Lumber Company, and exhausted entitlement to those regular unemployment benefits after January 1, 2008; new text end

new text begin (2) the applicant meets the same eligibility requirements that are required for regular unemployment benefits under Minnesota Statutes, section 268.069; new text end

new text begin (3) the applicant is not entitled to any other unemployment benefits and is not entitled to receive unemployment benefits under any other state or federal law for that week, including any other extended unemployment benefits; and new text end

new text begin (4) if an applicant qualifies for any type of unemployment benefits available under Minnesota law, or under any federal law, or the law of another state, the applicant must apply for and exhaust entitlement to those unemployment benefits. new text end

new text begin Subd. 4. new text end

new text begin Weekly amount of extra benefits. new text end

new text begin The weekly extra unemployment benefits amount available to an applicant is the same as the applicant's weekly regular unemployment benefit amount on the benefit account established in subdivision 3, clause (1). new text end

new text begin Subd. 5. new text end

new text begin Maximum amount of extra unemployment benefits. new text end

new text begin The maximum amount of extra unemployment benefits available is equal to 13 times the applicant's weekly benefit amount. new text end

new text begin Subd. 6. new text end

new text begin Program expiration. new text end

new text begin This extra unemployment benefit program expires on December 27, 2008. No extra unemployment benefits may be paid for any week after the expiration of this program. new text end

new text begin Subd. 7. new text end

new text begin Notice. new text end

new text begin The commissioner must notify applicants of the availability of extra unemployment benefits by posting a notice on the department's official Web site, by notifying applicants by individual mailing where department records show the applicant may qualify for these extra unemployment benefits, and by any other appropriate announcement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies retroactively from January 1, 2008. new text end

Sec. 32.

new text begin UNEMPLOYMENT BENEFITS; CONTINUED REQUEST TIME PERIOD WAIVER. new text end

new text begin Notwithstanding any other law to the contrary, the commissioner must accept initial and continued requests for unemployment benefits and pay unemployment benefits to an applicant who currently resides in Hubbard County and applied for unemployment benefits on September 15, 2006, and had an account dated September 10, 2006: new text end

new text begin (1) was employed as a technician or inspector for Northwest Airlines, Inc., prior to August 20, 2005; new text end

new text begin (2) stopped working on or about August 20, 2005, because of a labor dispute between the Aircraft Mechanics Fraternal Association (AMFA) and Northwest Airlines, Inc.; new text end

new text begin (3) did not file an initial or continued requests for unemployment benefits within the time periods required under Minnesota Statutes, chapter 268; and new text end

new text begin (4) meets all the other requirements for the payment of unemployment benefits under Minnesota Statutes, section 268.069, subdivision 2. new text end

new text begin Any unemployment benefits paid under the account established September 10, 2006, shall be deducted from the total benefits authorized under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies retroactively from August 21, 2005. new text end

Sec. 33.

new text begin [116J.657] OFFICE OF SCIENCE AND TECHNOLOGY. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin An Office of Science and Technology is established in the Department of Employment and Economic Development to do the following: new text end

new text begin (1) coordinate public and private efforts to procure federal funding for collaborative research and development projects of primary benefit to small and medium-sized businesses; new text end

new text begin (2) promote contractual relationships between Minnesota businesses that are recipients of federal grants and prime contractors, and Minnesota-based subcontractors; new text end

new text begin (3) work with Minnesota nonprofit institutions including the University of Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting collaborative efforts to respond to federal funding opportunities; new text end

new text begin (4) develop a framework for Minnesota companies to establish sole-source relationships with federal agencies; and new text end

new text begin (5) coordinate workshops, assistance with business proposals, licensing, intellectual property protection, commercialization, and government auditing with the University of Minnesota and Minnesota State Colleges and Universities. new text end

new text begin For the purposes of this section, "office" means the Office of Science and Technology established in this subdivision. new text end

new text begin Subd. 2. new text end

new text begin Technology partnering with a prime contractor. new text end

new text begin The office must develop a program to assist small businesses competing for a small business innovation research award by matching the applicant with a larger company. Prime contractors are matched to small businesses through a prescreening process that may result in a letter of support for the applicant designed to increase the chance of receiving a Small Business Innovation Research (SBIR) award. new text end

new text begin Subd. 3. new text end

new text begin Collaborate to commercialize. new text end

new text begin The office must develop a program to use the federal high-risk research and development investment program to encourage the development of new technologies, products, and business development and to reduce development risks by encouraging alliances between medium-sized companies and innovative small businesses. new text end

new text begin Subd. 4. new text end

new text begin Technology matchmaking. new text end

new text begin The office must assist businesses in identifying qualified suppliers and vendors through a program to serve as a conduit for Minnesota-based companies to network with firms able to support their success. Firms outside Minnesota can participate in the technology matchmaking network if one of the participating companies is located in Minnesota. new text end

new text begin Subd. 5. new text end

new text begin Commercialization assistance. new text end

new text begin The office must provide commercialization assistance to Minnesota firms that have received a Phase I Small Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer (STTR) award and are submitting a Phase II proposal. Local service providers must assist the applicant with developing and reviewing the required commercialization plan prior to Phase II submission. The office may provide SBIR Phase I proposal technical review. new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin The commissioner of employment and economic development must report to the committees in the house of representatives and senate having jurisdiction over bioscience and technology issues on the activities of the Office of Science and Technology by June 30, 2009. new text end

Sec. 34.

new text begin 2008 DISTRIBUTIONS ONLY. new text end

new text begin For distribution in 2008 only, a special fund is established to receive 9.65 cents per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6. If sufficient funds are not available under Minnesota Statutes, section 298.28, subdivision 6, to make the payments required under this section and under Minnesota Statutes, section 298.28, subdivision 6, the remaining amount needed to total 9.65 cents per ton may be taken from funds available under Minnesota Statutes, section 298.28, subdivision 9. The following amounts are allocated to St. Louis County acting as the fiscal agent for the recipients for the following specified purposes: new text end

new text begin (1) two cents per ton must be paid to the Hibbing Economic Development Authority to retire bonds and for economic development purposes; new text end

new text begin (2) 0.25 cent per ton must be paid to the St. Louis County School Board to study the potential for and impact of consolidation and streamlining the operations of the St. Louis County School District No. 2142; new text end

new text begin (3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work; new text end

new text begin (4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for housing projects; new text end

new text begin (5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower infrastructure; new text end

new text begin (6) 0.25 cent per ton must be paid to the Mountain Iron-Buhl School Board to study the potential for and impact of consolidation or streamlining the operations of the Mountain Iron-Buhl School District No. 712; new text end

new text begin (7) 0.25 cent per ton must be paid to the Virginia School Board to study the potential for an impact of consolidation or streamlining the operations of the Virginia Public School District No. 706; new text end

new text begin (8) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and safety and maintenance improvements at a former elementary school building that is currently owned by the city, to be used for economic development purposes; new text end

new text begin (9) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer lines from the city of Chisholm to the St. Louis County fairgrounds; new text end

new text begin (10) 1.5 cents per ton must be paid to the White Community Hospital for debt restructuring; new text end

new text begin (11) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and water improvements; and new text end

new text begin (12) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water improvements. new text end

Sec. 35.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2006, section 341.31, new text end new text begin and new text end new text begin Laws 2004, chapter 188, section 2, new text end new text begin are repealed. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 11

TRANSPORTATION

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

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

new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin (255,000) new text end new text begin $ new text end new text begin (255,000) new text end
new text begin Trunk Highway new text end new text begin 6,850,000 new text end new text begin -0- new text end new text begin 6,850,000 new text end
new text begin State Airports new text end new text begin -0- new text end new text begin (15,000,000) new text end new text begin (15,000,000) new text end
new text begin Total new text end new text begin $ new text end new text begin 6,850,000 new text end new text begin $ new text end new text begin (15,255,000) new text end new text begin $ new text end new text begin (8,405,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. new text end

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

new text begin APPROPRIATIONS new text end
new text begin <