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Key: (1) language to be deleted (2) new language

CHAPTER 215--H.F.No. 1671
An act
relating to the financing and operation of state and local government;
making supplemental appropriations, reductions in appropriations, and funds
transfers for higher education, environment and natural resources, energy and
commerce, agriculture, veterans affairs, economic development, transportation,
public safety, judiciary, and state government; modifying certain statutory
provisions and laws; providing for certain programs; fixing, authorizing,
modifying, and limiting fees and assessments; modifying mineral fund
provisions; creating certain accounts; modifying calculation of state aids
and credits for local government; requiring reports; requiring rulemaking;
appropriating money;amending Minnesota Statutes 2008, sections 4.51;
16B.04, subdivision 2; 16B.48, subdivision 2; 80A.46; 115A.15, subdivision
6; 116L.17, subdivision 2; 116U.26; 136A.1701, subdivisions 4, 7; 136A.29,
subdivision 9; 136A.69, subdivisions 1, 3, 4; 141.255; 161.04, by adding
a subdivision; 273.1384, by adding a subdivision; 297I.06, subdivision 3;
326B.148, subdivision 1; 471.6175, subdivision 4; 477A.013, subdivision 9;
477A.03, subdivisions 2a, 2b; 611A.32, subdivision 2; 626.8458, subdivision 5;
641.12, by adding a subdivision; Minnesota Statutes 2009 Supplement, sections
16A.152, subdivision 2; 16A.82; 45.30, subdivision 6; 115C.08, subdivision 4;
136A.121, subdivision 9; 136F.98, subdivision 1; 154.002; 154.003; 155A.23, by
adding a subdivision; 155A.24, subdivision 2, by adding subdivisions; 155A.25;
190.19, subdivision 2a; 270C.145; 273.111, subdivision 9; 275.70, subdivision
5; 289A.08, subdivision 16; 298.294; 477A.011, subdivision 36; Laws 2008,
chapter 366, article 2, section 12; Laws 2009, chapter 78, article 1, section 3,
subdivision 2; article 7, section 2; Laws 2009, chapter 83, article 1, sections 10,
subdivision 4; 11; 14, subdivision 2; Laws 2009, chapter 94, article 3, section
2, subdivision 3; Laws 2009, chapter 95, article 1, sections 3, subdivisions 6,
12, 21; 5, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapter 477A; repealing Minnesota Statutes 2008, sections 13.721, subdivision
4; 103G.705, subdivision 2; 136A.1701, subdivision 5; 136A.69, subdivision
2; 141.255, subdivision 3; 221.0355, subdivisions 1, 2, 3, 4, 5, 6, 7, 7a, 8, 9,
10, 11, 12, 13, 14, 16, 17, 18; 477A.03, subdivision 5; Laws 2009, chapter 88,
article 12, section 21.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
SUMMARY


Section 1. GENERAL FUND SUMMARY.
    The amounts shown in this section summarize general fund direct appropriations,
cancellations, and transfers into the general fund from other funds, made in this act.

2010
2011
Total

Higher Education
$
1,427,000
$
(48,427,000)
$
(47,000,000)


Environment and Natural
Resources
(5,300,000)
(7,457,000)
(12,757,000)

Energy
(890,000)
(322,000)
(1,212,000)

Agriculture
(2,780,000)
(3,374,000)
(5,754,000)

Veterans Affairs
-0-
200,000
200,000

Economic Development
(2,531,000)
(4,589,000)
(7,120,000)

Transportation
-0-
(14,650,000)
(14,650,000)

Public Safety
(8,043,000)
(14,608,000)
(22,651,000)

State Government
(3,545,000)
(2,345,000)
(5,890,000)

Tax Aids and Credits
-0-
(111,279,000)
(111,279,000)

Subtotal of Appropriations
(21,662,000)
(206,851,000)
(228,513,000)

Transfers In
20,482,000
34,684,000
55,166,000

Total
$
(42,144,000)
$
(241,535,000)
$
(283,679,000)

ARTICLE 2
HIGHER EDUCATION


Section 1. SUMMARY OF APPROPRIATIONS.
    Subdivision 1. Summary Total. The amounts shown in this section summarize
direct appropriations, by fund, made in this article.

2010
2011
Total

General
$
1,427,000
$
(48,427,000)
$
(47,000,000)
    Subd. 2. Summary by Agency - All Funds. The amounts shown in this subdivision
summarize direct appropriations, by agency, made in this article.

2010
2011
Total


Minnesota Office of Higher
Education
$
1,427,000
$
(1,840,000)
$
(413,000)



Board of Trustees of the
Minnesota State Colleges and
Universities
-0-
(10,467,000)
(10,467,000)


Board of Regents of the
University of Minnesota
-0-
(36,120,000)
(36,120,000)

Total
$
1,427,000
$
(48,427,000)
$
(47,000,000)


Sec. 2. APPROPRIATIONS.
The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. OFFICE OF HIGHER EDUCATION

Subdivision 1.Total Appropriation
$
1,427,000
$
(1,840,000)
The appropriation additions or reductions
for each purpose are shown in the following
subdivisions.

Subd. 2.State Work-Study
-0-
(1,768,000)
This is a onetime reduction.


Subd. 3.Technical and Community College
Emergency Grants
-0-
(50,000)

Subd. 4.Interstate Tuition Reciprocity
1,487,000
264,000
This is a onetime appropriation.

Subd. 5.Agency Administration
(60,000)
(81,000)

Subd. 6.MnLink Gateway and Minitex
-0-
(205,000)
This is a onetime reduction.




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

Subdivision 1.Total Appropriation
$
-0-
$
(10,467,000)
The appropriation additions or reductions
for each purpose are shown in the following
subdivisions.
The Board of Trustees must make a
good-faith effort to make the reductions
required by this section at campuses and the
central office in a manner that minimizes
reductions related to providing direct services
to students and that maximizes reductions for
administrative services not providing direct
services to students.


Subd. 2.Central Office and Shared Services
Unit
-0-
(500,000)

Subd. 3.Operations and Maintenance
-0-
(9,967,000)
For fiscal years 2012 and 2013, the base for
operations and maintenance is $592,792,000
each year.

Subd. 4.Cook County Higher Education
$40,000 in fiscal year 2010 and $40,000 in
fiscal year 2011 appropriated by Laws 2009,
chapter 95, article 1, section 4, to the board
of trustees for operations and maintenance
are for Cook County higher education. This
subdivision is effective the day following
final enactment.



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

Subdivision 1.Total Appropriation
$
-0-
$
(36,120,000)
The amounts that must be reduced or
added for each purpose are specified in the
following subdivisions.

Subd. 2.Operations and Maintenance
-0-
(32,223,000)
This reduction is from operations and
maintenance. The Board of Regents must
make a good-faith effort to make the
reductions required by this section in a
manner that minimizes reductions related
to providing direct services to students and
that maximizes reductions for administrative
services not providing direct services to
students. The Board of Regents is requested
to consider, if feasible, making voluntary
for its lowest paid employees any furlough
program designed to meet budget shortfalls.
For fiscal years 2012 and 2013, the base for
operations and maintenance is $578,370,000
each year.

Subd. 3.Special Appropriations

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

(b) Health Sciences
-0-
(281,000)
$18,000 in fiscal year 2011 is a reduction to
the appropriation to support up to 12 resident
physicians in the St. Cloud Hospital family
practice residency program.
Of the appropriation in Laws 2009, chapter
95, article 1, section 5, subdivision 5,
paragraph (b), for Health Sciences, $645,000
each year is for graduate family medicine
education programs at Hennepin County
Medical Center.

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

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


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

    Sec. 6. Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9, is
amended to read:
    Subd. 9. Awards. An undergraduate student who meets the office's requirements
is eligible to apply for and receive a grant in any year of undergraduate study unless the
student has obtained a baccalaureate degree or previously has been enrolled full time or
the equivalent for nine eight semesters or the equivalent, excluding courses taken from a
Minnesota school or postsecondary institution which is not participating in the state grant
program and from which a student transferred no credit. A student who withdraws from
enrollment for active military service, or for a major illness, while under the care of a
medical professional, that substantially limits the student's ability to complete the term is
entitled to an additional semester or the equivalent of grant eligibility. A student enrolled
in a two-year program at a four-year institution is only eligible for the tuition and fee
maximums established by law for two-year institutions.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2008, section 136A.1701, subdivision 4, is amended to read:
    Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such
terms and conditions as the office may prescribe. The Under the SELF IV program, the
principal amount of a loan to an undergraduate student for a single academic year shall
not exceed $6,000 for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007.
Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not
exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed
$7,500 effective July 1, 2006 $7,500 per grade level. The aggregate principal amount of
all loans made under this section subject to this paragraph to an undergraduate student
shall not exceed $34,500 through June 30, 2007, and $37,500 after June 30, 2007. The
principal amount of a loan to a graduate student for a single academic year shall not
exceed $9,000. The aggregate principal amount of all loans made under this section
subject to this paragraph to a student as an undergraduate and graduate student shall not
exceed $52,500 through June 30, 2007, and $55,500 after June 30, 2007. The amount of
the loan may not exceed the cost of attendance less all other financial aid, including PLUS
loans or other similar parent loans borrowed on the student's behalf. The cumulative SELF
loan debt must not exceed the borrowing maximums in paragraph (b).
(b) The cumulative undergraduate borrowing maximums for SELF IV loans are:
(1) effective July 1, 2006, through June 30, 2007:
(i) grade level 1, $6,000;
(ii) grade level 2, $12,000;
(iii) grade level 3, $19,500;
(iv) grade level 4, $27,000; and
(v) grade level 5, $34,500; and
(2) effective July 1, 2007:
(i) grade level 1, $7,500;
(ii) (2) grade level 2, $15,000;
(iii) (3) grade level 3, $22,500;
(iv) (4) grade level 4, $30,000; and
(v) (5) grade level 5, $37,500.
(c) The principal amount of a SELF V or subsequent phase loan to students enrolled
in a bachelor's degree program, postbaccalaureate, or graduate program must not exceed
$10,000 per grade level. For all other eligible students, the principal amount of the loan
must not exceed $7,500 per grade level. The aggregate principal amount of all loans made
subject to this paragraph to a student as an undergraduate and graduate student must not
exceed $70,000. The amount of the loan must not exceed the cost of attendance less
all other financial aid, including PLUS loans or other similar parent loans borrowed on
the student's behalf. The cumulative SELF loan debt must not exceed the borrowing
maximums in paragraph (d).
(d)(1) The cumulative borrowing maximums for SELF V loans and subsequent
phases for students enrolled in a bachelor's degree program or postbaccalaureate program
are:
(i) grade level 1, $10,000;
(ii) grade level 2, $20,000;
(iii) grade level 3, $30,000;
(iv) grade level 4, $40,000; and
(v) grade level 5, $50,000.
(2) For graduate level students, the borrowing limit is $10,000 per nine-month
academic year, with a cumulative maximum for all SELF debt of $70,000.
(3) For all other eligible students, the cumulative borrowing maximums for SELF V
loans and subsequent phases are:
(i) grade level 1, $7,500;
(ii) grade level 2, $15,000;
(iii) grade level 3, $22,500;
(iv) grade level 4, $30,000; and
(v) grade level 5, $37,500.

    Sec. 8. Minnesota Statutes 2008, section 136A.1701, subdivision 7, is amended to read:
    Subd. 7. Repayment of loans. (a) The office shall establish repayment procedures
for loans made under this section, but in no event shall the period of permitted repayment
for SELF II or SELF III loans exceed ten years from the eligible student's termination of
the student's postsecondary academic or vocational program, or 15 years from the date of
the student's first loan under this section, whichever is less.
(b) For SELF IV loans from phases after SELF III, eligible students with aggregate
principal loan balances from all SELF phases that are less than $18,750 shall have a
repayment period not exceeding ten years from the eligible student's graduation or
termination date. For SELF IV loans from phases after SELF III, eligible students with
aggregate principal loan balances from all SELF phases of $18,750 or greater shall have
a repayment period not exceeding 15 years from the eligible student's graduation or
termination date. For SELF IV loans from phases after SELF III, the loans shall enter
repayment no later than seven years after the first disbursement date on the loan.
(c) For SELF loans from phases after SELF IV, eligible students with aggregate
principal loan balances from all SELF phases that are:
(1) less than $20,000, must have a repayment period not exceeding ten years from
the eligible student's graduation or termination date;
(2) $20,000 up to $40,000, must have a repayment period not exceeding 15 years
from the eligible student's graduation or termination date; and
(3) $40,000 or greater, must have a repayment period not exceeding 20 years
from the eligible student's graduation or termination date. For SELF loans from phases
after SELF IV, the loans must enter repayment no later than nine years after the first
disbursement date of the loan.

    Sec. 9. Minnesota Statutes 2008, section 136A.29, subdivision 9, is amended to read:
    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered
to issue revenue bonds whose aggregate principal amount at any time shall not exceed
$950,000,000 $1,300,000,000 and to issue notes, bond anticipation notes, and revenue
refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42,
to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling,
renovating, improving, furnishing, or equipping one or more projects or parts thereof.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. Minnesota Statutes 2008, section 136A.69, subdivision 1, is amended to read:
    Subdivision 1. Registration fees. (a) The office shall collect reasonable registration
fees that are sufficient to recover, but do not exceed, its costs of administering the
registration program. The office shall charge $1,100 for initial registration fees and $950
for annual renewal fees. the fees listed in paragraphs (b) and (c) for new registrations.
(b) A new school offering no more than one degree at each level during its first year
must pay registration fees for each applicable level in the following amounts:

associate degree
$2,000

baccalaureate degree
$2,500

master's degree
$3,000

doctorate degree
$3,500
(c) A new school that will offer more than one degree per level during its first
year must pay registration fees in an amount equal to the fee for the first degree at each
degree level under paragraph (b), plus fees for each additional nondegree program or
degree as follows:

nondegree program
$250

additional associate degree
$250

additional baccalaureate degree
$500

additional master's degree
$750

additional doctorate degree
$1,000
(d) The annual renewal registration fee is $1,200.

    Sec. 11. Minnesota Statutes 2008, section 136A.69, subdivision 3, is amended to read:
    Subd. 3. Degree or nondegree program addition fee. The office processing fee
fees for adding a degree or nondegree program that represents a significant departure in
the objectives, content, or method of delivery of degree or nondegree programs that are
currently offered by the school is $500 per degree or nondegree program. are as follows:

nondegree program that is part of existing degree
-0-

nondegree program that is not a part of an existing degree
$250 each


majors, specializations, emphasis areas, concentrations, and other
similar areas of emphasis
$250 each

associate degrees
$500 each

baccalaureate degrees
$500 each

master's degrees
$750 each

doctorate degrees
$2,000 each

    Sec. 12. Minnesota Statutes 2008, section 136A.69, subdivision 4, is amended to read:
    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
or outside consultant is necessary to review or evaluate any new or revised degree or
nondegree program, the office shall be reimbursed for the expenses incurred related to the
review as follows:
    (1) $300 $400 for the team base fee or for a paper review conducted by a consultant
if the office determines that a fact-finding visit is not required;
    (2) $300 for each day or part thereof on site per team member; and
    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
by team members.

    Sec. 13. Minnesota Statutes 2009 Supplement, section 136F.98, subdivision 1, is
amended to read:
    Subdivision 1. Issuance of bonds. The Board of Trustees of the Minnesota State
Colleges and Universities or a successor may issue revenue bonds under sections 136F.90
to 136F.97 whose aggregate principal amount at any time may not exceed $200,000,000
$300,000,000, and payable from the revenue appropriated to the fund established by
section 136F.94, and use the proceeds together with other public or private money that
may otherwise become available to acquire land, and to acquire, construct, complete,
remodel, and equip structures or portions thereof to be used for dormitory, residence hall,
student union, food service, parking purposes, or for any other similar revenue-producing
building or buildings of such type and character as the board finds desirable for the good
and benefit of the state colleges and universities. Before issuing the bonds or any part
of them, the board shall consult with and obtain the advisory recommendations of the
chairs of the house of representatives Ways and Means Committee and the senate Finance
Committee about the facilities to be financed by the bonds.

    Sec. 14. Minnesota Statutes 2008, section 141.255, is amended to read:
141.255 FEES.
    Subdivision 1. Initial licensure fee. The office processing fee for an initial licensure
application is:
(1) $1,500 $2,500 for a school that will offer no more than one program during
its first year of operation;
(2) $750 for a school licensed exclusively due to the use of the term "college,"
"university," "academy," or "institute" in its name, or licensed exclusively in order to
participate in state grant or SELF loan financial aid programs; and
(2) $2,000 for a school that will offer two or more nondegree level programs
(3) $2,500, plus $500 for each additional program offered by the school, for a school
during its first year of operation; and.
(3) $2,500 for a school that will offer two or more degree level programs during
its first year of operation.
    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a
renewal licensure application is:
    (1) for a category A school, as determined by the office, the fee is $865 if the school
offers one program or $1,150 if the school offers two or more programs; and
    (2) for a category B or C school, as determined by the office, the fee is $430 if the
school offers one program or $575 if the school offers two or more programs.
(1) for a school that offers one program, the license renewal fee is $1,150;
(2) for a school that offers more than one program, the license renewal fee is $1,150,
plus $200 for each additional program with a maximum renewal licensing fee of $2,000;
(3) for a school licensed exclusively due to the use of the term "college," "university,"
"academy," or "institute" in its name, the license renewal fee is $750; and
(4) for a school licensed by another state agency and also licensed with the office
exclusively in order to participate in state student aid programs, the license renewal fee is
$750.
    (b) If a license renewal application is not received by the office by the close of
business at least 60 days before the expiration of the current license, a late fee of $100
per business day, not to exceed $3,000, shall be assessed.
    Subd. 3. Degree level addition fee. The office processing fee for adding a degree
level to an existing program is $2,000 per program.
    Subd. 4. Program addition fee. The office processing fee for adding a program
that represents a significant departure in the objectives, content, or method of delivery of
programs to those that are currently offered by the school is $500 per program.
    Subd. 5. Visit or consulting fee. If the office determines that a fact-finding visit
or outside consultant is necessary to review or evaluate any new or revised program, the
office shall be reimbursed for the expenses incurred related to the review as follows:
(1) $300 $400 for the team base fee or for a paper review conducted by a consultant
if the office determines that a fact-finding visit is not required;
(2) $300 for each day or part thereof on site per team member; and
(3) the actual cost of customary meals, lodging, and related travel expenses incurred
by team members.
    Subd. 6. Modification fee. The fee for modification of any existing program is
$100 and is due if there is:
(1) an increase or decrease of 25 percent or more, from the original date of program
approval, in clock hours, credit hours, or calendar length of an existing program;
(2) a change in academic measurement from clock hours to credit hours or vice
versa; or
(3) an addition or alteration of courses that represent a 25 percent change or more in
the objectives, content, or methods of delivery.
    Subd. 7. Solicitor permit fee. The solicitor permit fee is $350 and must be paid
annually.
    Subd. 8. Multiple location fee. Schools wishing to operate at multiple locations
must pay:
(1) $250 per location, for locations two to five locations; and
(2) an additional $50 $100 for each location over five.
    Subd. 9. Student transcript fee. The fee for a student transcript requested from
a closed school whose records are held by the office is $10 $15, with a maximum of
five transcripts per request.
    Subd. 10. Public office documents; copies. The office shall establish rates rate for
copies of any public office document shall be 50 cents per page.

    Sec. 15. Laws 2009, chapter 95, article 1, section 3, subdivision 6, is amended to read:

Subd. 6.Achieve Scholarship Program
4,350,000
4,350,000
For scholarships under Minnesota Statutes,
section 136A.127. The office shall transfer
the appropriation for fiscal year 2011 to the
appropriation for state grants.
For fiscal years 2012 and 2013, the base
for the Achieve Scholarship Program is
$2,350,000 each year.

    Sec. 16. Laws 2009, chapter 95, article 1, section 3, subdivision 12, is amended to read:


Subd. 12.Technical and Community College
Emergency Grants
150,000
150,000
For transfer to the financial aid offices
at each of the colleges of the Minnesota
State Colleges and Universities to provide
emergency aid grants to technical and
community college students who are
experiencing extraordinary economic
circumstances that may result in the students
dropping out of school without completing
the term or their program. This is a onetime
appropriation.

    Sec. 17. Laws 2009, chapter 95, article 1, section 3, subdivision 21, is amended to read:

Subd. 21.Transfers
The Minnesota Office of Higher Education
may transfer unencumbered balances from
the appropriations in this section to the state
grant appropriation, the interstate tuition
reciprocity appropriation, the child care
grant appropriation, the Indian scholarship
appropriation, the state work-study
appropriation, the achieve scholarship
appropriation, the public safety officers'
survivors appropriation, the get ready
program, and the Minnesota college savings
plan appropriation. Transfers from the
state grant, child care, or state work-study
appropriations may only be made to the
extent there is a projected surplus in the
appropriation. A transfer may be made
only with prior written notice to the chairs
of the senate and house of representatives
committees with jurisdiction over higher
education finance.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 18. Laws 2009, chapter 95, article 1, section 5, subdivision 2, is amended to read:

Subd. 2.Operations and Maintenance
550,345,000
604,239,000
(a) This appropriation includes funding for
operation and maintenance of the system.
(b) The Board of Regents shall submit
expenditure reduction plans by March 15,
2010, to the committees of the legislature
with responsibility for higher education
finance to achieve the 2012-2013 base
established in this section. The plan must
focus on protecting direct instruction.
(c) Appropriations under this subdivision
may be used for a new scholarship under
Minnesota Statutes, section 137.0225, to
complement the University's Founders
scholarship.
(d) This appropriation includes amounts for
an Ojibwe Indian language program on the
Duluth campus.
(e) This appropriation includes money for the
Dakota language teacher training immersion
program on the Twin Cities campus to
prepare teachers to teach in Dakota language
immersion programs.
(f) This appropriation includes money for the
Veterinary Diagnostic Laboratory to preserve
accreditation.
(g) This appropriation includes money in
fiscal year 2010 for a onetime grant to the
Minnesota Wildlife Rehabilitation Center for
their uncompensated expenses in an amount
equal to the loan balance as of March 11,
2010, for expenses related to the center's
move from the campus.
(h) For fiscal years 2012 and 2013, the
base for operations and maintenance is
$596,930,000 each year.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 19. OFFICE OF HIGHER EDUCATION CARRY FORWARD.
Notwithstanding Minnesota Statutes, section 136A.233, subdivision 1, or 136A.125,
subdivision 7, the Office of Higher Education may carry forward from fiscal year 2010
to fiscal year 2011 money allocated to an institution for the child care and work study
programs that exceed the actual need and were refunded to the office. Notwithstanding
Minnesota Statutes, section 136A.125, subdivision 4c, money carried forward for the
child care program in fiscal year 2011 may be used to expand the number of recipients
in the program.

    Sec. 20. ACHIEVE SCHOLARSHIP PROGRAM FISCAL YEAR 2011
MODIFICATIONS.
(a) Notwithstanding Minnesota Statutes, section 136A.127, for achieve scholarship
awards in fiscal year 2011, the achieve scholarship program shall be modified as provided
in this section.
(b) Awards shall only be made to students who have an assigned family responsibility
of zero.
(c) An award shall be for $1,200 per academic year for all recipients unless reduced
under this section.
(d) A first round of awards shall be made to students for which the Office of Higher
Education has received a complete application by August 31, 2010. If there are insufficient
appropriations to make full awards to each student, all awards under this paragraph shall
be reduced by an equal amount sufficient to meet the insufficiency.
(e) If appropriations remain after the first round, awards shall be made on a
first-come, first-served basis.
(f) Except as modified by this section, the remaining unmodified provisions of
Minnesota Statutes, section 136A.127, shall govern achieve scholarship awards made
in fiscal year 2011.

    Sec. 21. REPEALER.
Minnesota Statutes 2008, sections 136A.1701, subdivision 5; 136A.69, subdivision
2; and 141.255, subdivision 3, are repealed.

ARTICLE 3
ENVIRONMENT AND NATURAL RESOURCES


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(3,162,000)
$
(7,457,000)
$
(10,619,000)

Environmental
-0-
535,000
535,000

Total
$
(3,162,000)
$
(6,922,000)
$
(10,084,000)


Sec. 2. APPROPRIATIONS.
    The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. POLLUTION CONTROL AGENCY

Subdivision 1.Total Appropriations
$
(352,000)
$
(629,000)

Appropriations by Fund

2010
2011

General
(352,000)
(1,164,000)

Environmental
-0-
535,000
The appropriation additions or reductions
for each purpose are shown in the following
subdivisions.
In order to leverage nonstate money or to
address high priority needs identified by the
commissioner, the commissioner may shift
appropriations in Laws 2009, chapter 37,
article 1, section 3, available in one fiscal
year to the other fiscal year within each
program. Any adjustments made under this
paragraph do not affect the agency base for
the programs affected.

Subd. 2.Water
(257,000)
(407,000)

Appropriations by Fund

General
(257,000)
(942,000)

Environmental
-0-
535,000
The commissioner shall recover the cost
of attorney general services related to
environmental assessment worksheets from
the project proposers.
$485,000 in 2011 is a reduction in the
appropriation for general water program
operations.
$9,000 in 2010 and $21,000 in 2011
are reductions in the appropriations for
community technical assistance and
education.
$485,000 in 2011 is appropriated from the
environmental fund for attorney general
costs in water program operations.
$77,000 in 2010 and $181,000 in 2011 are
reductions in the appropriations for the clean
water partnership program.
$71,000 in 2010 and $205,000 in 2011 are
reductions in the appropriations for the
county feedlot grant program.
$100,000 in 2010 is a reduction in the
appropriation for stormwater compliance
grants.
$50,000 in 2011 is a reduction in the
appropriation for grants to the Red River
Watershed Management Board for the river
watch program.
$50,000 in 2011 is appropriated from the
environmental fund for grants to the Red
River Watershed Management Board for the
river watch program.


Subd. 3.Environmental Assistance and
Cross-Media
(47,000)
(109,000)

Subd. 4.Administrative Support
(48,000)
(113,000)

Subd. 6.Transfers In
(a) The amounts appropriated from the
agency indirect costs account in the special
revenue fund are reduced by $328,000 in
fiscal year 2010 and $462,000 in fiscal year
2011, and those amounts must be transferred
to the general fund by June 30, 2011. The
appropriation reductions are onetime.
(b) The commissioner of management and
budget shall transfer $8,000,000 in fiscal year
2011 from the closed landfill investment fund
in Minnesota Statutes, section 115B.421, to
the general fund. The commissioner shall
transfer $4,000,000 on July 1, 2013, and
$4,000,000 on July 1, 2014, from the general
fund to the closed landfill investment fund.
For the July 1, 2014, transfer to the closed
landfill investment fund, the commissioner
shall determine the total amount of interest
and other earnings that would have accrued
to the fund if the transfers to the general fund
under this paragraph had not been made and
add this amount to the transfer. The amounts
necessary for these transfers are appropriated
from the general fund in the fiscal years
specified for the transfers.


Sec. 4. NATURAL RESOURCES

Subdivision 1.Total Appropriation
$
(2,008,000)
$
(4,439,000)
The appropriation additions or reductions
for each purpose are shown in the following
subdivisions.
In order to leverage nonstate money, or to
address high priority needs identified by the
commissioner, the commissioner may shift
appropriations in Laws 2009, chapter 37,
article 1, section 4, available in one fiscal
year to the other fiscal year within each
program. Any adjustments made under this
paragraph do not affect the agency base for
the programs affected.

Subd. 2.Lands and Minerals
(168,000)
(388,000)
$101,000 in 2010 and $237,000 in 2011 are
reductions in the appropriations for land and
mineral resources management operations.
$61,000 in 2010 and $91,000 in 2011 are
reductions in the appropriations for the iron
ore cooperative research program.
$6,000 in 2010 and $6,000 in 2011 are
reductions in the appropriations for minerals
cooperative research.
$54,000 in 2011 is a reduction in the
appropriations for issuing mining permits in
Laws 2009, chapter 88, article 12, section 22.

Subd. 3.Water Resource Management
(422,000)
(644,000)
$268,000 in 2010 and $626,000 in 2011 are
reductions in the appropriations for water
resource management operations.
$7,000 in 2011 is a reduction in the
appropriation for grants to the Mississippi
Headwaters Board.
$154,000 in 2010 and $11,000 in 2011 are
reductions in the appropriation for the Red
River flood damage reduction grants.

Subd. 4.Forest Management
(670,000)
(1,404,000)
$587,000 in 2010 and $1,295,000 in 2011
are reductions in the appropriations for forest
management. Of this amount, $88,000 in
2010 and $132,000 in 2011 are onetime.
$72,000 in 2010 and $72,000 in 2011
are reductions in the appropriations for
prevention costs of emergency firefighting.
$11,000 in 2010 and $17,000 in 2011 are
reductions in the appropriations for the
FORIST system.
$20,000 in 2011 is a reduction in the
appropriation for grants to the Forest
Resources Council.

Subd. 5.Parks and Trails Management
(420,000)
(980,000)
$420,000 in 2010 and $980,000 in 2011 are
reductions in the appropriations for parks
and trails management.

Subd. 6.Fish and Wildlife Management
-0-
(225,000)
$225,000 in 2011 is a reduction in the
appropriation for wildlife health programs.

Subd. 7.Ecological Services
(131,000)
(307,000)
$103,000 in 2010 and $241,000 in 2011
are reductions in the appropriations for
ecological services operations.
$28,000 in 2010 and $66,000 in 2011 are
reductions in the appropriations for the
prevention of the spread of invasive species.

Subd. 8.Enforcement
(135,000)
(345,000)
The commissioner shall reduce overtime
before laying off enforcement staff.

Subd. 9.Operations Support
(62,000)
(146,000)

Subd. 10.Transfers In
(a) By June 30, 2010, the commissioner of
management and budget shall transfer any
remaining balance, estimated to be $98,000,
from the stream protection and improvement
fund under Minnesota Statutes, section
103G.705, to the general fund. Beginning
in fiscal year 2011, all repayment of loans
made and administrative fees assessed under
Minnesota Statutes, section 103G.705,
estimated to be $195,000 in 2011, must be
transferred to the general fund.
(b) The balance of surcharges on criminal and
traffic offenders, estimated to be $900,000,
and credited to the game and fish fund
under Minnesota Statutes, section 357.021,
subdivision 7, and collected before June 30,
2010, must be transferred to the general fund.
(c) The appropriation in Laws 2007, First
Special Session chapter 2, article 1, section 5,
for cost-share flood programs in southeastern
Minnesota is reduced by $335,000 and that
amount is canceled to the general fund.
(d) Before June 30, 2011, the commissioner
of management and budget shall transfer
$1,000,000 from the fleet management
account in the special revenue fund
established under Minnesota Statutes, section
84.0856, to the general fund.



Sec. 5. BOARD OF WATER AND SOIL
RESOURCES

Subdivision 1.Total Appropriation
$
(591,000)
$
(1,363,000)
The appropriation additions or reductions for
each purpose are specified in the following
subdivisions.
Notwithstanding Minnesota Statutes,
sections 103B.3369 and 103C.501, in order
to leverage nonstate money or to address
high-priority needs identified by board
resolution, the board may shift appropriations
in Laws 2009, chapter 37, article 1, section 5,
available in one fiscal year to the other fiscal
year within a program. Any appropriations
for grants in Laws 2009, chapter 37, article 1,
section 5, that are carried forward from fiscal
year 2010 to fiscal year 2011 are available
for natural resources block grants to local
governments and general purpose grants to
soil and water conservation districts. Any
adjustments made under this paragraph do
not affect the agency base for the programs
affected.

Subd. 2.Appropriation Reductions
$71,000 in 2010 and $167,000 in 2011
are reductions in the appropriations for
administration.
$20,000 in 2010 and $46,000 in 2011 are
reductions in the appropriation for Wetland
Conservation Act oversight.
$160,000 in 2010 and $374,000 in 2011 are
reductions in the appropriations for natural
resources block grants to local governments.
$135,000 in 2010 and $315,000 in 2011 are
reductions in the appropriations for general
purpose grants to soil and water conservation
districts.
$38,000 in 2010 and $90,000 in 2011 are
reductions in the appropriations for cost-share
grants to soil and water conservation districts.
$137,000 in 2010 and $187,000 in 2011 are
reductions in cost-share grants to establish
and maintain riparian vegetative buffers.
$19,000 in 2010 and $45,000 in 2011 are
reductions in the appropriations for feedlot
water quality grants.
$11,000 in 2010 and $17,000 in 2011 are
reductions in the appropriation for assistance
to local drainage officials.
$100,000 in 2011 is a reduction in the
appropriation for cost-share grants for
drainage records modernization.
$6,000 in 2011 is a reduction in the
appropriation for the grant to the Red River
Basin Commission.
$6,000 in 2011 is a reduction in the
appropriation for the grant to the Minnesota
River Basin Joint Powers Board.
$10,000 in 2011 is a reduction in the
appropriation for a grant to Area II,
Minnesota River Basin Projects for flood
plain management.

Subd. 3.Carryforward Cancellations

(a)Clean Water Legacy
The appropriation in Laws 2007, chapter 57,
article 1, section 5, for clean water legacy
programs and grants is reduced by $775,000
and that amount is canceled to the general
fund.

(b)Cost-Share Vegetations Buffer Grants
The appropriation in Laws 2007, chapter 57,
article 1, section 5, for grants for establishing
and maintaining vegetation buffers is reduced
by $100,000 and that amount is canceled to
the general fund.

(c)Cost-Share Grants
The appropriation in Laws 2007, chapter 57,
article 1, section 5, for grants for cost-sharing
contract for erosion control and water quality
management is reduced by $250,000 and that
amount is canceled to the general fund.

(d)SE Flood Transfer Funds
The appropriation in Laws 2007, First
Special Session chapter 2, article 1, section
8, transferred to the appropriation in Laws
2007, First Special Session chapter 2, article
1, section 6, subdivision 3, for cost-share
flood programs is reduced by $628,000 and
that amount is canceled to the general fund.

(e)Cost-Share South East Flood
The appropriation in Laws 2008, chapter
363, article 5, section 5, for cost-share flood
work is reduced by $50,000 and that amount
is canceled to the general fund.

Subd. 4.Returned Grants
Beginning July 1, 2010, all returned grant
money originating from general fund grant
programs will be deposited into individual
accounts in the special revenue fund and held
for eventual transfer back to the general fund.
On December 15, 2010, and on December
15 of each year thereafter, $310,000 of the
receipts in this special revenue fund will be
transferred to the general fund. If less than
$310,000 is available on the transfer date, an
additional transfer on June 15 sufficient to
make the $310,000 annual obligation will
be made.


Sec. 6. METROPOLITAN COUNCIL
$
(86,000)
$
(154,000)
$86,000 in 2010 and $154,000 in 2011
are reductions in the appropriations for
metropolitan parks and trails.
The commissioner of management and
budget, in consultation with the council, may
shift these reductions from the first fiscal
year to the second fiscal year if sufficient
funds are not available for reduction in the
first fiscal year. Any adjustments made under
this paragraph do not affect the appropriation
base.


Sec. 7. ZOOLOGICAL BOARD
$
(125,000)
$
(337,000)

    Sec. 8. REPEALER.
Minnesota Statutes 2008, section 103G.705, subdivision 2, is repealed.

ARTICLE 4
ENERGY


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts in this section summarize direct appropriations, or reductions in
appropriations, by fund, made in this article.

2010
2011
Total

General
$
110,000
$
(322,000)
$
(212,000)

Petroleum Tank Cleanup
(25,000)
(32,000)
(57,000)

Total
$
85,000
$
(354,000)
$
(269,000)


Sec. 2. APPROPRIATIONS.
The dollar amounts in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from appropriations enacted in Laws 2009, chapter 37, article
2, unless otherwise stated. The appropriations and reductions in appropriations are from
the general fund, or another named fund, and are for the fiscal years indicated for each
purpose. The figures "2010" and "2011" mean that the appropriations or reductions in
appropriations listed under them are for the fiscal year ending June 30, 2010, or June
30, 2011, respectively. The "first year" is fiscal year 2010. The "second year" is fiscal
year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations, reductions in
appropriations, cancellations of appropriations, and transfers of appropriations for the
fiscal year ending June 30, 2010, are effective the day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. DEPARTMENT OF COMMERCE

Subdivision 1.Total Appropriation
$
85,000
$
(354,000)

Appropriations by Fund

2010
2011

General
110,000
(322,000)


Petroleum Tank
Release Cleanup
(25,000)
(32,000)
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Administrative Services
(66,000)
(126,000)

Subd. 3.Market Assurance
(124,000)
(196,000)


Subd. 4.Nationwide Mortgage Licensing
System and Registry Access
400,000
-0-


Subd. 5.Petroleum Tank Release Cleanup
Board
(25,000)
(32,000)
These reductions are from the petroleum tank
release cleanup fund.




Sec. 4. DEPARTMENT OF
COMMERCE-OFFICE OF ENERGY
SECURITY
$
(100,000)
$
--0-
The appropriation additions or reductions
for each purpose are shown in the following
paragraph.
$100,000 the first year is a reduction in the
appropriation for E85 cost-share grants.



Sec. 5. CANCELLATIONS; DEPARTMENT
OF COMMERCE

Subdivision 1.E-85 Grants
The appropriation in Laws 2007, chapter 57,
article 2, section 3, subdivision 6, as amended
by Laws 2008, chapter 363, article 6, section
3, subdivision 4, for E-85 cost-share grants,
is reduced by $350,000 and is canceled to
the general fund.


Subd. 2.Renewable Hydrogen Initiative
Grants
The remaining balance of the appropriation
in Laws 2007, chapter 57, article 2, section
3, subdivision 6, as amended by Laws 2008,
chapter 363, article 6, section 3, subdivision
4, for renewable hydrogen initiative grants,
estimated to be $650,000, is canceled to the
general fund.

Subd. 3.Transfers In
Before June 30, 2010, the commissioner
of management and budget shall transfer
$1,969,000 to the general fund. After July
1, 2010, and before June 30, 2011, the
commissioner of management and budget
shall transfer $1,032,000 to the general
fund. These transfers are from the petroleum
tank release cleanup fund established in
Minnesota Statutes, section 115C.08.


Sec. 6. TRANSFERS IN
(a) For the purposes of this section,
"commissioner" means the commissioner of
management and budget.
(b) In the first year, the commissioner
shall transfer $3,024,000 from the special
revenue fund to the general fund. In the
second year, the commissioner shall transfer
$1,993,000 from the special revenue fund to
the general fund. The transfers must be from
the following appropriation reductions and
accounts within the special revenue fund:
(1) $246,000 the first year and $270,000 the
second year are from the telecommunications
access Minnesota fund established in
Minnesota Statutes, section 237.52;
(2) $238,000 the first year is from the
assessments collected under Minnesota
Statutes, section 216C.052, for the reliability
administrator;
(3) $200,000 the first year and $200,000
the second year are from the Department
of Commerce license technology surcharge
account established in Minnesota Statutes,
section 45.24;
(4) $381,000 the first year and $260,000
the second year are from the energy
and conservation account established in
Minnesota Statutes, section 216B.241.
Of this amount, (i) $43,000 the first year
and $17,000 the second year are from
the assessments for technical assistance
in Minnesota Statutes, section 216B.241,
subdivision 1d; (ii) $316,000 the first year
and $213,000 the second year are from
the assessments for applied research and
development grants in Minnesota Statutes,
section 216B.241, subdivision 1e; and (iii)
$22,000 the first year and $30,000 the second
year are from the assessment for facilities
energy efficiency in Minnesota Statutes,
section 216B.241, subdivision 1f;
(5) $64,000 the first year and $48,000 the
second year are from the insurance fraud
prevention account established in Minnesota
Statutes, section 45.0135;
(6) $1,133,000 the first year and $1,111,000
the second year are from the automobile theft
prevention account established in Minnesota
Statutes, section 168A.40;
(7) $549,000 the first year and $5,000
the second year are from the real estate
education, research and recovery fund
established in Minnesota Statutes, section
82.43;
(8) $100,000 the first year is from the
consumer education account established in
Minnesota Statutes, section 58.10;
(9) $11,000 the first year and $15,000
the second year are from the fees and
assessments collected under Minnesota
Statutes, section 216E.18;
(10) the remaining balance in the first
year, estimated to be $19,000, is from the
routing of certain pipelines under Minnesota
Statutes, section 216G.02;
(11) $4,000 the first year and $9,000 the
second year are from the joint exercise of
powers agreements with the Department of
Health for regulating health maintenance
organizations;
(12) $75,000 the first year and $75,000 the
second year are from the liquefied petroleum
gas account established in Minnesota
Statutes, section 239.785;
(13) $4,000 in the first year is from the
petroleum inspection fee established in
Minnesota Statutes, section 239.101, for
renewable energy equipment grants.


Sec. 7. TRANSFER; ASSIGNED RISK PLAN
By June 30, 2010, the commissioner of
management and budget shall transfer
$14,000,000 in assets of the workers'
compensation assigned risk plan created
under Minnesota Statutes, section 79.252, to
the general fund.

    Sec. 8. Minnesota Statutes 2009 Supplement, section 45.30, subdivision 6, is amended
to read:
    Subd. 6. Course approval. (a) Courses must be approved by the commissioner in
advance. A course that is required by federal criteria or a reciprocity agreement to receive
a substantive review will be approved or disapproved on the basis of its compliance with
the provisions of laws and rules relating to the appropriate industry. At the commissioner's
discretion, a course that is not required by federal criteria or a reciprocity agreement to
receive a substantive review may be approved based on a qualified provider's certification
on a form specified by the commissioner that the course complies with the provisions of
this chapter and the laws and rules relating to the appropriate industry. For the purposes
of this section, a "qualified provider" is one of the following: (1) a degree-granting
institution of higher learning located within this state; (2) a private school licensed by the
Minnesota Office of Higher Education; or (3) when conducting courses for its members, a
bona fide trade association that staffs and maintains in this state a physical location that
contains course and student records and that has done so for not less than three years.
The commissioner may review any approved course and may cancel its approval with
regard to all future offerings. The commissioner must make the final determination as to
accreditation and assignment of credit hours for courses. Courses must be at least one hour
in length, except courses for real estate appraisers must be at least two hours in length.
Individuals wishing to receive credit for continuing education courses that have not
been previously approved may submit the course information for approval. Courses
must be in compliance with the laws and rules governing the types of courses that will
and will not be approved.
Approval will not include time spent on meals or other unrelated activities.
(b) Courses must be submitted at least 30 days before the initial proposed course
offering.
(c) Approval must be granted for a subsequent offering of identical continuing
education courses without requiring a new application. The commissioner must deny
future offerings of courses if they are found not to be in compliance with the laws relating
to course approval.
(d) When either the content of an approved course or its method of instruction
changes, the course is no longer approved for license education credit. A new application
must be submitted for the changed course if the education provider intends to offer it for
license education credit.

    Sec. 9. Minnesota Statutes 2008, section 80A.46, is amended to read:
80A.46 SECTION 202; EXEMPT TRANSACTIONS.
    The following transactions are exempt from the requirements of sections 80A.49
through 80A.54, except 80A.50, paragraph (a), clause (3), and 80A.71:
    (1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers
in Minnesota during any period of 12 consecutive months, whether effected by or through
a broker-dealer or not;
    (2) a nonissuer transaction by or through a broker-dealer registered, or exempt from
registration under this chapter, and a resale transaction by a sponsor of a unit investment
trust registered under the Investment Company Act of 1940, in a security of a class that
has been outstanding in the hands of the public for at least 90 days, if, at the date of
the transaction:
    (A) the issuer of the security is engaged in business, the issuer is not in the
organizational stage or in bankruptcy or receivership, and the issuer is not a blank check,
blind pool, or shell company that has no specific business plan or purpose or has indicated
that its primary business plan is to engage in a merger or combination of the business with,
or an acquisition of, an unidentified person;
    (B) the security is sold at a price reasonably related to its current market price;
    (C) the security does not constitute the whole or part of an unsold allotment to, or
a subscription or participation by, the broker-dealer as an underwriter of the security
or a redistribution;
    (D) a nationally recognized securities manual or its electronic equivalent designated
by rule adopted or order issued under this chapter or a record filed with the Securities and
Exchange Commission that is publicly available contains:
    (i) a description of the business and operations of the issuer;
    (ii) the names of the issuer's executive officers and the names of the issuer's
directors, if any;
    (iii) an audited balance sheet of the issuer as of a date within 18 months before the
date of the transaction or, in the case of a reorganization or merger when the parties to
the reorganization or merger each had an audited balance sheet, a pro forma balance
sheet for the combined organization; and
    (iv) an audited income statement for each of the issuer's two immediately previous
fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case
of a reorganization or merger when each party to the reorganization or merger had audited
income statements, a pro forma income statement; and
    (E) any one of the following requirements is met:
    (i) the issuer of the security has a class of equity securities listed on a national
securities exchange registered under Section 6 of the Securities Exchange Act of 1934
or designated for trading on the National Association of Securities Dealers Automated
Quotation System;
    (ii) the issuer of the security is a unit investment trust registered under the Investment
Company Act of 1940;
    (iii) the issuer of the security, including its predecessors, has been engaged in
continuous business for at least three years; or
    (iv) the issuer of the security has total assets of at least $2,000,000 based on an
audited balance sheet as of a date within 18 months before the date of the transaction or, in
the case of a reorganization or merger when the parties to the reorganization or merger
each had such an audited balance sheet, a pro forma balance sheet for the combined
organization;
    (3) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter in a security of a foreign issuer that is a margin security
defined in regulations or rules adopted by the Board of Governors of the Federal Reserve
System;
    (4) a nonissuer transaction by or through a broker-dealer registered or exempt
from registration under this chapter in an outstanding security if the guarantor of the
security files reports with the Securities and Exchange Commission under the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
Sections 78m or 78o(d));
    (5) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter in a security that:
    (A) is rated at the time of the transaction by a nationally recognized statistical rating
organization in one of its four highest rating categories; or
    (B) has a fixed maturity or a fixed interest or dividend, if:
    (i) a default has not occurred during the current fiscal year or within the three
previous fiscal years or during the existence of the issuer and any predecessor if less than
three fiscal years, in the payment of principal, interest, or dividends on the security; and
    (ii) the issuer is engaged in business, is not in the organizational stage or in
bankruptcy or receivership, and is not and has not been within the previous 12 months a
blank check, blind pool, or shell company that has no specific business plan or purpose or
has indicated that its primary business plan is to engage in a merger or combination of the
business with, or an acquisition of, an unidentified person;
    (6) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter effecting an unsolicited order or offer to purchase;
    (7) a nonissuer transaction executed by a bona fide pledgee without the purpose
of evading this chapter;
    (8) a nonissuer transaction by a federal covered investment adviser with investments
under management in excess of $100,000,000 acting in the exercise of discretionary
authority in a signed record for the account of others;
    (9) a transaction in a security, whether or not the security or transaction is otherwise
exempt, in exchange for one or more bona fide outstanding securities, claims, or property
interests, or partly in such exchange and partly for cash, if the terms and conditions of
the issuance and exchange or the delivery and exchange and the fairness of the terms and
conditions have been approved by the administrator after a hearing;
    (10) a transaction between the issuer or other person on whose behalf the offering is
made and an underwriter, or among underwriters;
    (11) a transaction in a note, bond, debenture, or other evidence of indebtedness
secured by a mortgage or other security agreement if:
    (A) the note, bond, debenture, or other evidence of indebtedness is offered and sold
with the mortgage or other security agreement as a unit;
    (B) a general solicitation or general advertisement of the transaction is not made; and
    (C) a commission or other remuneration is not paid or given, directly or indirectly, to
a person not registered under this chapter as a broker-dealer or as an agent;
    (12) a transaction by an executor, administrator of an estate, sheriff, marshal,
receiver, trustee in bankruptcy, guardian, or conservator;
    (13) a sale or offer to sell to:
    (A) an institutional investor;
    (B) an accredited investor;
    (C) a federal covered investment adviser; or
    (D) any other person exempted by rule adopted or order issued under this chapter;
    (14) a sale or an offer to sell securities by an issuer, if the transaction is part of
a single issue in which:
    (A) not more than 35 purchasers are present in this state during any 12 consecutive
months, other than those designated in paragraph (13);
    (B) a general solicitation or general advertising is not made in connection with
the offer to sell or sale of the securities;
    (C) a commission or other remuneration is not paid or given, directly or indirectly, to
a person other than a broker-dealer registered under this chapter or an agent registered
under this chapter for soliciting a prospective purchaser in this state; and
    (D) the issuer reasonably believes that all the purchasers in this state, other than
those designated in paragraph (13), are purchasing for investment.
Any issuer selling to purchasers in this state in reliance on this clause (14) exemption
must provide to the administrator notice of the transaction by filing a statement of issuer
form as adopted by rule. Notice must be filed at least ten days in advance of any sale or
such shorter period as permitted by the administrator. However, an issuer who makes sales
to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not
required to provide this notice;
    (15) a transaction under an offer to existing security holders of the issuer, including
persons that at the date of the transaction are holders of convertible securities, options,
or warrants, if a commission or other remuneration, other than a standby commission, is
not paid or given, directly or indirectly, for soliciting a security holder in this state. The
person making the offer and effecting the transaction must provide to the administrator
notice of the transaction by filing a written description of the transaction. Notice must be
filed at least ten days in advance of any transaction or such shorter period as permitted by
the administrator;
    (16) an offer to sell, but not a sale, of a security not exempt from registration under
the Securities Act of 1933 if:
    (A) a registration or offering statement or similar record as required under the
Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance
with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and
    (B) a stop order of which the offeror is aware has not been issued against the offeror
by the administrator or the Securities and Exchange Commission, and an audit, inspection,
or proceeding that is public and that may culminate in a stop order is not known by the
offeror to be pending;
    (17) an offer to sell, but not a sale, of a security exempt from registration under the
Securities Act of 1933 if:
    (A) a registration statement has been filed under this chapter, but is not effective;
    (B) a solicitation of interest is provided in a record to offerees in compliance with a
rule adopted by the administrator under this chapter; and
    (C) a stop order of which the offeror is aware has not been issued by the administrator
under this chapter and an audit, inspection, or proceeding that may culminate in a stop
order is not known by the offeror to be pending;
    (18) a transaction involving the distribution of the securities of an issuer to the
security holders of another person in connection with a merger, consolidation, exchange
of securities, sale of assets, or other reorganization to which the issuer, or its parent
or subsidiary and the other person, or its parent or subsidiary, are parties. The person
distributing the issuer's securities must provide to the administrator notice of the
transaction by filing a written description of the transaction along with a consent to service
of process complying with section 80A.88. Notice must be filed at least ten days in
advance of any transaction or such shorter period as permitted by the administrator;
    (19) a rescission offer, sale, or purchase under section 80A.77;
    (20) an offer or sale of a security to a person not a resident of this state and not
present in this state if the offer or sale does not constitute a violation of the laws of the
state or foreign jurisdiction in which the offeree or purchaser is present and is not part of
an unlawful plan or scheme to evade this chapter;
    (21) employees' stock purchase, savings, option, profit-sharing, pension, or
similar employees' benefit plan, including any securities, plan interests, and guarantees
issued under a compensatory benefit plan or compensation contract, contained in a
record, established by the issuer, its parents, its majority-owned subsidiaries, or the
majority-owned subsidiaries of the issuer's parent for the participation of their employees
including offers or sales of such securities to:
    (A) directors; general partners; trustees, if the issuer is a business trust; officers;
consultants; and advisors;
    (B) family members who acquire such securities from those persons through gifts or
domestic relations orders;
    (C) former employees, directors, general partners, trustees, officers, consultants, and
advisors if those individuals were employed by or providing services to the issuer when
the securities were offered; and
    (D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's
subsidiaries or parents, or who derive more than 50 percent of their annual income from
those organizations.
A person establishing an employee benefit plan under the exemption in this clause
(21) must provide to the administrator notice of the transaction by filing a written
description of the transaction along with a consent to service of process complying with
section 80A.88. Notice must be filed at least ten days in advance of any transaction or
such shorter period as permitted by the administrator;
    (22) a transaction involving:
    (A) a stock dividend or equivalent equity distribution, whether the corporation or
other business organization distributing the dividend or equivalent equity distribution is
the issuer or not, if nothing of value is given by stockholders or other equity holders for
the dividend or equivalent equity distribution other than the surrender of a right to a cash
or property dividend if each stockholder or other equity holder may elect to take the
dividend or equivalent equity distribution in cash, property, or stock;
    (B) an act incident to a judicially approved reorganization in which a security is
issued in exchange for one or more outstanding securities, claims, or property interests, or
partly in such exchange and partly for cash; or
    (C) the solicitation of tenders of securities by an offeror in a tender offer in
compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162);
    (23) a nonissuer transaction in an outstanding security by or through a broker-dealer
registered or exempt from registration under this chapter, if the issuer is a reporting
issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order
issued under this chapter; has been subject to continuous reporting requirements in the
foreign jurisdiction for not less than 180 days before the transaction; and the security is
listed on the foreign jurisdiction's securities exchange that has been designated by this
paragraph or by rule adopted or order issued under this chapter, or is a security of the same
issuer that is of senior or substantially equal rank to the listed security or is a warrant or
right to purchase or subscribe to any of the foregoing. For purposes of this paragraph,
Canada, together with its provinces and territories, is a designated foreign jurisdiction
and The Toronto Stock Exchange, Inc., is a designated securities exchange. After an
administrative hearing in compliance with chapter 14, the administrator, by rule adopted
or order issued under this chapter, may revoke the designation of a securities exchange
under this paragraph, if the administrator finds that revocation is necessary or appropriate
in the public interest and for the protection of investors;
    (24) any transaction effected by or through a Canadian broker-dealer exempted from
broker-dealer registration pursuant to section 80A.56(b)(3); or
    (25)(A) the offer and sale by a cooperative organized under chapter 308A, or
under the laws of another state, of its securities when the securities are offered and sold
only to its members, or when the purchase of the securities is necessary or incidental to
establishing membership in the cooperative, or when the securities are issued as patronage
dividends. This paragraph applies to a cooperative organized under chapter 308A, or under
the laws of another state, only if the cooperative has filed with the administrator a consent
to service of process under section 80A.88 and has, not less than ten days before the
issuance or delivery, furnished the administrator with a written general description of the
transaction and any other information that the administrator requires by rule or otherwise;
    (B) the offer and sale by a cooperative organized under chapter 308B of its securities
when the securities are offered and sold to its existing members or when the purchase of the
securities is necessary or incidental to establishing patron membership in the cooperative,
or when such securities are issued as patronage dividends. The administrator has the
power to define "patron membership" for purposes of this paragraph. This paragraph
applies to securities, other than securities issued as patronage dividends, only when:
    (i) the issuer, before the completion of the sale of the securities, provides each
offeree or purchaser disclosure materials that, to the extent material to an understanding of
the issuer, its business, and the securities being offered, substantially meet the disclosure
conditions and limitations found in rule 502(b) of Regulation D promulgated by the
Securities and Exchange Commission, Code of Federal Regulations, title 17, section
230.502; and
    (ii) within 15 days after the completion of the first sale in each offering completed in
reliance upon this exemption, the cooperative has filed with the administrator a consent to
service of process under section 80A.88 (or has previously filed such a consent), and has
furnished the administrator with a written general description of the transaction and any
other information that the administrator requires by rule or otherwise; and
(C) a cooperative may, at or about the same time as offers or sales are being
completed in reliance upon the exemptions from registration found in this subpart and as
part of a common plan of financing, offer or sell its securities in reliance upon any other
exemption from registration available under this chapter. The offer or sale of securities in
reliance upon the exemptions found in this subpart will not be considered or deemed a part
of or be integrated with any offer or sale of securities conducted by the cooperative in
reliance upon any other exemption from registration available under this chapter, nor will
offers or sales of securities by the cooperative in reliance upon any other exemption from
registration available under this chapter be considered or deemed a part of or be integrated
with any offer or sale conducted by the cooperative in reliance upon this paragraph.

    Sec. 10. ASSESSMENT.
(a) The commissioner of commerce may levy a pro rata assessment on institutions
licensed under Minnesota Statutes, chapter 58, to recover the costs to the Department of
Commerce for administering the licensing and registration requirements of Minnesota
Statutes, section 58A.10, if enacted in the 2010 legislative session.
(b) The commissioner shall levy the assessments and notify each institution of the
amount of the assessment being levied by September 30, 2010. The institution shall pay
the assessment to the department no later than November 30, 2010. If an institution fails
to pay its assessment by this date, its license may be suspended by the commissioner
until it is paid in full.
(c) This section expires December 1, 2010.

ARTICLE 5
AGRICULTURE


Section 1. SUMMARY OF APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(2,780,000)
$
(3,374,000)
$
(6,154,000)


Sec. 2. APPROPRIATIONS.
    The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund or another named fund and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. AGRICULTURE

Subdivision 1.Total Appropriation
$
(2,593,000)
$
(3,133,000)
The appropriation additions or reductions
for each purpose are shown in the following
subdivisions.

Subd. 2.Protection Services
(130,000)
(586,000)
$60,000 in 2010 and $200,000 in 2011 are
reductions in the appropriations for dairy and
food inspection.
$25,000 in 2010 and $50,000 in 2011 are
reductions in the appropriations for the food
inspection laboratory.


Subd. 3.Agricultural Marketing and
Development
(124,000)
(8,000)
$3,000 in 2010 is a reduction for grants to
farmers for demonstration projects involving
sustainable agriculture, as authorized in
Minnesota Statutes, section 17.116.


Subd. 4.Bioenergy and Value-Added
Agriculture
(2,220,000)
(2,220,000)
$2,220,000 in 2010 and $2,220,000 in
2011 are reductions in appropriations for
ethanol producer payments under Minnesota
Statutes, section 41A.09. These reductions
are onetime.


Subd. 5.Administration and Financial
Assistance
(119,000)
(319,000)
$20,000 in 2010 and $52,000 in 2011
are reductions from the appropriation for
the dairy development and profitability
enhancement and dairy business planning
grant programs established under Laws 1997,
chapter 216, section 7, subdivision 2, and
Laws 2001, First Special Session chapter 2,
section 9, subdivision 2.
$1,000 in 2011 is a reduction from the
appropriation for a grant to the Minnesota
Livestock Breeders Association.
$15,000 in 2011 is a reduction from the
appropriation for a grant to the Minnesota
Agricultural Education and Leadership
Council.
$3,000 in 2011 is a reduction from the
appropriation for the Northern Crops
Institute.
$4,000 in 2010 and $4,000 in 2011 are
reductions from the appropriation for grants
to the Minnesota Turf Seed Council for
basic and applied research on the improved
production of forage and turf seed related to
new and improved varieties.
$3,000 in 2010 and $3,000 in 2011 are
reductions from the appropriation for grants
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.
$60,000 in 2010 is a reduction from the
appropriation for the agricultural growth,
research, and innovation program.
$6,000 in 2011 is a reduction from the
appropriation for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for mental health counseling
support to farm families and business
operators through farm business management
programs at Central Lakes College and
Ridgewater College.
$1,000 in 2011 is a reduction from the
appropriation for a grant to the Minnesota
Horticultural Society.
$4,000 in 2010 is a reduction from the
appropriation for transfer to the University
of Minnesota Extension Service for
farm-to-school grants to school districts in
Minneapolis, Moorhead, White Earth, and
Willmar.
$28,000 in 2010 and $234,000 in 2011 and
$684,000 in 2012 and $684,000 in 2013
are reductions due to efficiencies and other
cost savings realized by various methods
including, but not limited to, renegotiating
leases and other contracts and resource
reorganization or consolidation within the
department or in conjunction with other
public entities. The commissioner may
allocate these reductions to programs.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriation encumbered on or
before June 30, 2009, as grants for NextGen
bioenergy projects in Laws 2007, chapter 45,
article 1, section 3, subdivision 4, is available
until June 30, 2011.

Subd. 6.Transfers In
Notwithstanding any other law to the
contrary, the commissioner of management
and budget shall transfer $1,046,000 from
the agriculture chemical response and
reimbursement account in the agricultural
fund to the general fund by June 15, 2011.
By June 15, 2013, the commissioner of
management and budget shall transfer
$2,092,000 from the agricultural fund to the
general fund.


Sec. 4. BOARD OF ANIMAL HEALTH
$
(87,000)
$
(141,000)



Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
(100,000)
$
(100,000)

ARTICLE 6
VETERANS AFFAIRS


Section 1. SUMMARY OF APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
-0-
$
200,000
$
200,000


Sec. 2. APPROPRIATIONS.
The sums shown in the columns marked "Appropriations" are added to, or if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 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 "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. VETERANS AFFAIRS
$
-0-
$
200,000
$100,000 in fiscal year 2011 is for a grant
to the Minnesota Assistance Council for
Veterans to provide assistance throughout
Minnesota to veterans and their families who
are homeless or in danger of homelessness,
including housing, utility, employment, and
legal assistance, according to guidelines
established by the commissioner. In
order to avoid duplication of services,
the commissioner must ensure that this
assistance will be coordinated with all other
available programs for veterans. This is a
onetime appropriation.
$100,000 in the second year is for
compensation for honor guards at the
funerals of veterans in accordance with
the program established in Minnesota
Statutes, section 197.231. This is a onetime
appropriation.
$200,000 in fiscal year 2010 and $200,000
in fiscal year 2011 are from the Support our
Troops account established in Minnesota
Statutes, section 190.19, for an increase in
the CORE grant program.


Sec. 4. VETERANS HOMES
Of the appropriation in Laws 2009, chapter
94, article 3, section 2, subdivision 3, or from
funds carried forward from fiscal year 2009:
(1) $1,000,000 in fiscal year 2011 is for
operational expenses related to the 21-bed
addition at the Fergus Falls Veterans Home;
and
(2) $113,000 in fiscal year 2011 is for start-up
expenses related to the opening of an adult
daycare facility at the Minneapolis Veterans
Home.


Sec. 5. REPORT TO THE LEGISLATURE
By January 15, 2011, 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 any
unexpended appropriations, revenues, or
other actual or projected carryover money
provided directly or indirectly through any
provision in this article.

    Sec. 6. Minnesota Statutes 2009 Supplement, section 190.19, subdivision 2a, is
amended to read:
    Subd. 2a. Uses; veterans. Money appropriated to the Department of Veterans
Affairs from the Minnesota "Support Our Troops" account may be used for:
    (1) grants to veterans service organizations;
    (2) outreach to underserved veterans; and
(3) providing services and programs for veterans and their families; and
(4) transfers to the vehicle services account for Gold Star license plates under
section 168.1253.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Laws 2009, chapter 94, article 3, section 2, subdivision 3, is amended to read:

Subd. 3.Veterans Homes
43,673,000
43,916,000
Veterans Homes Special Revenue Account.
The general fund appropriations made to
the department may be transferred to a
veterans homes special revenue account in
the special revenue fund in the same manner
as other receipts are deposited according
to Minnesota Statutes, section 198.34, and
are appropriated to the department for the
operation of veterans homes facilities and
programs.
Repair and Betterment. Of this
appropriation, $1,000,000 in fiscal year
2010 and $500,000 in fiscal year 2011
are to be used for repair, maintenance,
rehabilitation, and betterment activities at
facilities statewide.
Hastings Veterans Home. $220,000 each
year is for increases in the mental health
program at the Hastings Veterans Home.
Food. $92,000 in fiscal year 2010 and
$189,000 in fiscal year 2011 are for increases
in food costs at the Minnesota veterans
homes.
Pharmaceuticals. $287,000 in fiscal year
2010 and $617,000 in fiscal year 2011 are for
increases in pharmaceutical costs.
Fuel and Utilities. $277,000 in fiscal year
2010 and $593,000 in fiscal year 2011 are
for increases in fuel and utility costs at the
Minnesota veterans homes.
Medicare Part D. $141,000 in fiscal year
2010 and $141,000 in fiscal year 2011 are
for implementation of Minnesota Statutes,
section 198.003, subdivision 7.

ARTICLE 7
ECONOMIC DEVELOPMENT


Section 1. SUMMARY OF APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(2,531,000)
$
(4,589,000)
$
(7,120,000)


Sec. 2. APPROPRIATIONS.
    The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1,
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 "2010" and "2011" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
Appropriations for the fiscal year ending June 30, 2010, are effective the day following
final enactment. Reductions may be taken in either fiscal year.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT

Subdivision 1.Total Appropriation
$
(1,643,000)
$
(1,582,000)
The appropriation reductions for each
purpose are specified in the following
subdivisions.


Subd. 2.Business and Community
Development
(193,000)
(582,000)
(a) $15,000 in 2010 and $25,000 in 2011
are from the appropriation for a grant to
BioBusiness Alliance of Minnesota.
(b) $15,000 in 2011 is from the appropriation
for a grant to the Minnesota Inventors
Congress.
(c) $6,000 in 2010 and $10,000 in 2011
are from the appropriation for the Office of
Science and Technology. This is a onetime
reduction.
(d) $15,000 in 2010 and $25,000 in 2011
are from the appropriation for a grant to
Enterprise Minnesota, Inc. This is a onetime
reduction.

Subd. 3.Workforce Development
(384,000)
(910,000)
(a) $250,000 in 2010 and $250,000 in
2011 are from the appropriation for the
Minnesota job skills partnership program
under Minnesota Statutes, sections 116L.01
to 116L.17.
(b) $119,000 in 2011 is from the appropriation
for State Services for the Blind activities.
(c) $71,000 in 2010 and $119,000 in 2011 are
from the appropriation for grants to Centers
for Independent Living.
(d) $22,000 in 2010 and $375,000 in 2011
are from the appropriation for extended
employment services under Minnesota
Statutes, section 268A.15. Notwithstanding
Minnesota Rules, parts 3300.2030 to
3300.2055, the commissioner may adjust
contracts with eligible extended employment
providers in order to achieve required
reductions through June 30, 2011. The
general fund base for extended employment
services is $5,405,000 in fiscal year 2012 and
$5,405,000 in fiscal year 2013.
(e) $41,000 in 2010 and $47,000 in 2011 are
from the appropriation for grants to programs
that provide employment support services to
persons with mental illness under Minnesota
Statutes, sections 268A.13 and 268A.14.

Subd. 4.State-Funded Administration
(35,000)
(90,000)

Subd. 5.Carryforward
(1,000,000)
-0-
The carryforward reduction is for the job
skills partnership program.

Subd. 6.Transfers and Cancellations
(a) $2,500,000 in 2010 and $2,500,000 in
2011 are transferred from the petroleum
tank release cleanup fund under Minnesota
Statutes, section 115C.08, to the general
fund.
(b) $80,000 in 2010 is transferred from the
unemployment insurance state administration
account in the special revenue fund under
Minnesota Statutes, section 268.196,
subdivision 1, to the general fund.
(c) $160,000 in 2010 is transferred from
the capital access program account in the
special revenue fund under Minnesota
Statutes, section 116J.876, subdivision 4, to
the general fund.
(d) The remaining balance from the Laws
2007, chapter 135, article 1, section 3,
appropriation for a grant to Le Sueur County
is canceled.



Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY; TRANSFERS
$
-0-
$
-0-
By June 30, 2010, the commissioner of
management and budget shall transfer
$1,425,000 from the assigned risk safety
account in the worker's compensation fund to
the general fund.



Sec. 5. BUREAU OF MEDIATION
SERVICES
$
(50,000)
$
(83,000)


Sec. 6. ACCOUNTANCY BOARD
$
(15,000)
$
(25,000)




Sec. 7. BOARD OF ARCHITECTURE,
ENGINEERING, SURVEYING, AND
LANDSCAPING
$
(24,000)
$
(41,000)



Sec. 8. BOARD OF COSMETOLOGIST
EXAMINERS
$
-0-
$
395,000


Sec. 9. BOARD OF BARBER EXAMINERS
$
-0-
$
69,000



Sec. 10. COMBATIVE SPORTS
COMMISSION
$
-0-
$
-0-


Sec. 11. HOUSING FINANCE AGENCY

Subdivision 1.Total Appropriation
$
(2,061,000)
$
(2,156,000)
The amounts that may be spent or must be
reduced for each purpose are specified in the
following subdivisions.

Subd. 2.Affordable Rental Investment Fund
(2,061,000)
(1,156,000)
These reductions are from the appropriation
for the affordable rental investment fund
program under Minnesota Statutes, section
462A.21, subdivision 8b.
In fiscal year 2010, the Housing Finance
Agency shall transfer $2,061,000 from the
affordable rental investment fund program in
the housing development fund, to the general
fund.
The base appropriation for the affordable
rental investment fund program for fiscal
years 2012 and 2013 is $7,546,000 for each
year.

Subd. 3.Housing Rehabilitation
-0-
(1,000,000)
This reduction is from the appropriation
for the housing rehabilitation program
under Minnesota Statutes, section 462A.05,
subdivision 14, for rental housing
developments.
The base appropriation for the housing
rehabilitation program for fiscal years 2012
and 2013 is $3,287,000 for each year.


Sec. 12. PUBLIC FACILITIES AUTHORITY
$
(11,000)
$
(7,000)


Sec. 13. EXPLORE MINNESOTA TOURISM
$
(253,000)
$
(302,000)
(a) $251,000 in 2010 and $300,000 in
2011 are reductions to Explore Minnesota
Tourism. Of the reduction in 2010, $13,000
is a reduction in the carryforward from fiscal
year 2009.
(b) $2,000 in 2010 and $2,000 in 2011 are
reductions to the incentive grants program.



Sec. 14. MINNESOTA HISTORICAL
SOCIETY
$
(210,000)
$
(490,000)

(a) Education and Outreach
$120,000 in 2010 and $280,000 in 2011 are
reductions to education and outreach.

(b) Preservation and Access
$90,000 in 2010 and $210,000 in 2011 are
reductions to the preservation and access
program.


Sec. 15. BOARD OF THE ARTS
$
(259,000)
$
(284,000)

(a) Operations and Services
$20,000 in 2010 and $21,000 in 2011 are
reductions to operations and services.

(b) Grants Program
$165,000 in 2010 and $182,000 in 2011 are
reductions to the grants program.

(c) Regional Arts Council
$74,000 in 2010 and $81,000 in 2011 are
reductions to the Regional Arts Council.



Sec. 16. MINNESOTA HUMANITIES
CENTER
$
-0-
$
-0-


Sec. 17. PUBLIC BROADCASTING
$
(66,000)
$
(83,000)
(a) $38,000 in 2010 and $48,000 in 2011
are reductions to matching grants for public
television.
(b) $7,000 in 2010 and $10,000 in 2011 are
reductions to public television equipment
grants.
(c) $1,000 in 2010 and $1,000 in 2011 are
reductions to the grant to the Twin Cities
regional cable channel.
(d) $9,000 in 2010 and $9,000 in 2011 are
reductions to the community service grants
to public educational radio stations.
(e) $3,000 in 2010 and $3,000 in 2011 are
reductions to the equipment grants to public
educational radio stations.
(f) $8,000 in 2010 and $12,000 in 2011
are reductions to the equipment grants to
Minnesota Public Radio, Inc.

    Sec. 18. Laws 2009, chapter 78, article 1, section 3, subdivision 2, is amended to read:


Subd. 2.Business and Community
Development
8,980,000
8,980,000

Appropriations by Fund

General
7,941,000
7,941,000

Remediation
700,000
700,000


Workforce
Development
339,000
339,000
(a) $700,000 the first year and $700,000 the
second year are from the remediation fund for
contaminated site cleanup and development
grants under Minnesota Statutes, section
116J.554. This appropriation is available
until expended.
(b) $200,000 each year is from the general
fund for a grant to WomenVenture for
women's business development programs
and for programs that encourage and assist
women to enter nontraditional careers in the
trades; manual and technical occupations;
science, technology, engineering, and
mathematics-related occupations; and green
jobs. This appropriation may be matched
dollar for dollar with any resources available
from the federal government for these
purposes with priority given to initiatives
that have a goal of increasing by at least ten
percent the number of women in occupations
where women currently comprise less than 25
percent of the workforce. The appropriation
is available until expended.
(c) $105,000 each year is from the general
fund and $50,000 each year is from the
workforce development fund for a grant to
the Metropolitan Economic Development
Association for continuing minority business
development programs in the metropolitan
area. This appropriation must be used for the
sole purpose of providing free or reduced
fee business consulting services to minority
entrepreneurs and contractors.
(d)(1) $500,000 each year is from the
general fund for a 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. This
appropriation is added to the department's
base. These funds may be used to create,
recruit, retain, and expand biobusiness
activity in Minnesota; implement the
destination 2025 statewide plan; update
a statewide assessment of the bioscience
industry and the competitive position of
Minnesota-based bioscience businesses
relative to other states and other nations;
and develop and implement business and
scenario-planning models to create, recruit,
retain, and expand biobusiness activity in
Minnesota.
(2) The BioBusiness Alliance must report
each year by February 15 to the committees
of the house of representatives and the senate
having jurisdiction over bioscience industry
activity in Minnesota on the use of funds;
the number of bioscience businesses and
jobs created, recruited, retained, or expanded
in the state since the last reporting period;
the competitive position of the biobusiness
industry; and utilization rates and results of
the business and scenario-planning models
and outcomes resulting from utilization of
the business and scenario-planning models.
(e)(1) Of the money available in the
Minnesota Investment Fund, Minnesota
Statutes, section 116J.8731, to the
commissioner of the Department of
Employment and Economic Development,
up to $3,000,000 is appropriated in fiscal year
2010 for a loan to an aircraft manufacturing
and assembly company, associated with the
aerospace industry, for equipment utilized
to establish an aircraft completion center
at the Minneapolis-St. Paul International
Airport. The finishing center must use the
state's vocational training programs designed
specifically for aircraft maintenance training,
and to the extent possible, work to recruit
employees from these programs. The center
must create at least 200 new manufacturing
jobs within 24 months of receiving the
loan, and create not less than 500 new
manufacturing jobs over a five-year period
in Minnesota.
(2) This loan is not subject to loan limitations
under Minnesota Statutes, section 116J.8731,
subdivision 5
. Any match requirements
under Minnesota Statutes, section 116J.8731,
subdivision 3
, may be made from current
resources. This is a onetime appropriation
and is effective the day following final
enactment.
(f) $65,000 each year is from the general
fund for a grant to the Minnesota Inventors
Congress, of which at least $6,500 must be
used for youth inventors.
(g) $200,000 the first year and $200,000 the
second year are for the Office of Science and
Technology. This is a onetime appropriation.
(h) $500,000 the first year and $500,000 the
second year are for a grant to Enterprise
Minnesota, Inc., for the small business
growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation and is available
until expended.
(i)(1) $100,000 each year is from the
workforce development 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 funds not spent the first year are
available the second year.
(j) Notwithstanding Minnesota Statutes,
section 268.18, subdivision 2, $414,000 of
funds collected for unemployment insurance
administration under this subdivision is
appropriated as follows: $250,000 to Lake
County for ice storm damage; $64,000 is for
the city of Green Isle for reimbursement of
fire relief efforts and other expenses incurred
as a result of the fire in the city of Green Isle;
and $100,000 is to develop the construction
mitigation pilot program to make grants for
up to five projects statewide available to local
government units to mitigate the impacts of
transportation construction on local small
business. These are onetime appropriations
and are available until expended.
(k) Up to $10,000,000 is appropriated from
the Minnesota minerals 21st century fund to
the commissioner of Iron Range resources
and rehabilitation to make a grant grants
or forgivable loan loans to a manufacturer
manufacturers of windmill blades, other
renewable energy manufacturing, or biomass
products at a facility facilities to be located
within the taconite tax relief area defined
in Minnesota Statutes, section 273.134. No
match is required for the renewable energy
manufacturing or biomass projects.
(l) $1,000,000 is appropriated from the
Minnesota minerals 21st century fund to
the Board of Trustees of the Minnesota
State Colleges and Universities for a grant
to the Northeast Higher Education District
for planning, design, and construction of
classrooms and housing facilities for upper
division students in the engineering program.
(m)(1) $189,000 each year is appropriated
from the workforce development fund for
grants of $63,000 to eligible organizations
each year to assist in the development of
entrepreneurs and small businesses. 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.
(2) 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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 19. ADJUSTMENT.
    The amounts appropriated in Laws 2009, chapter 78, article 1, section 3,
subdivision 3, paragraph (aa), for adult and displaced worker programs, are available
for the appropriated purposes until April 1, 2010, and after that date are also available
for the purposes of serving formula individual dislocated workers from small layoffs
under Minnesota Statutes, section 116L.17. None of these amounts may be used
for administrative costs by either the commissioner of employment and economic
development or the local workforce investment boards.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 20. APPROPRIATIONS MADE ONLY ONCE.
If the appropriations made in this article are enacted more than once in the 2010
regular session, these appropriations must be given effect only once.
EFFECTIVE DATE.This section is effective the day following final enactment.

ARTICLE 8
MISCELLANEOUS ECONOMIC DEVELOPMENT

    Section 1. Minnesota Statutes 2009 Supplement, section 115C.08, subdivision 4, is
amended to read:
    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
(1) to administer the petroleum tank release cleanup program established in this
chapter;
(2) for agency administrative costs under sections 116.46 to 116.50, sections
115C.03 to 115C.06, and costs of corrective action taken by the agency under section
115C.03, including investigations;
(3) for costs of recovering expenses of corrective actions under section 115C.04;
(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
(5) for agency administrative costs of enforcing rules governing the construction,
installation, operation, and closure of aboveground and underground petroleum storage
tanks;
(6) for reimbursement of the environmental response, compensation, and compliance
account under subdivision 5 and section 115B.26, subdivision 4;
(7) for administrative and staff costs as set by the board to administer the petroleum
tank release program established in this chapter;
(8) for corrective action performance audits under section 115C.093;
(9) for contamination cleanup grants, as provided in paragraph (c); and
(10) to assess and remove abandoned underground storage tanks under section
115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
services costs necessary to complete the tank removal project, including, but not limited
to, excavation soil sampling, groundwater sampling, soil disposal, and completion of an
excavation report.
(b) Except as provided in paragraph (c), money in the fund is appropriated to the
board to make reimbursements or payments under this section.
(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
to the commissioner of employment and economic development for contamination cleanup
grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
$6,200,000 is annually appropriated from the fund to the commissioner of employment
and economic development for contamination cleanup grants under section 116J.554. Of
this amount, the commissioner may spend up to $225,000 annually for administration
of the contamination cleanup grant program. The appropriation does not cancel and is
available until expended. The appropriation shall not be withdrawn from the fund nor the
fund balance reduced until the funds are requested by the commissioner of employment
and economic development. The commissioner shall schedule requests for withdrawals
from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
Unless otherwise provided, the appropriation in this paragraph may be used for:
(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
to petroleum contamination or new and used tar and tar-like substances, including but not
limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
fractions, or residues from the processing of petroleum crude or petroleum products as
defined in section 296A.01; and
(2) the costs of performing contamination investigation if there is a reasonable basis
to suspect the contamination is attributable to petroleum or new and used tar and tar-like
substances, including but not limited to bitumen and asphalt, but excluding bituminous or
asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
in the earth or are distillates, fractions, or residues from the processing of petroleum crude
or petroleum products as defined in section 296A.01.

    Sec. 2. Minnesota Statutes 2008, section 116L.17, subdivision 2, is amended to read:
    Subd. 2. Grants. The board shall make grants to workforce service areas or other
eligible organizations to provide services to dislocated workers as follows:
(a) The board shall allocate funds available for the purposes of this section in its
discretion to respond to substantial layoffs and plant closings.
(b) The board shall regularly allocate funds to provide services to individual
dislocated workers or small groups. The initial allocation for this purpose must be 50
percent of the deposits and transfers into the workforce development fund, less any
collection costs paid out of the fund and any amounts appropriated by the legislature from
the workforce development fund for programs other than the state dislocated worker
program.
(c) Following the initial allocation, the board may consider additional allocations
to provide services to individual dislocated workers. The board's decision to allocate
additional funds shall be based on relevant economic indicators including: the number
of substantial layoffs to date, notices of substantial layoffs for the remainder of the fiscal
year, evidence of declining industries, the number of permanently separated individuals
applying for unemployment benefits by workforce service area, and the number of
individuals exhausting unemployment benefits by workforce service area. The board must
also consider expenditures of allocations to workforce service areas under paragraph (b)
made during the first two quarters of the fiscal year and federal resources that have been
or are likely to be allocated to Minnesota for the purposes of serving dislocated workers
affected by substantial layoffs or plant closings; except that this sentence does not apply
in fiscal year 2011.
(d) The board may, in its discretion, allocate funds carried forward from previous
years under subdivision 9 for large, small, or individual layoffs.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 3. Minnesota Statutes 2009 Supplement, section 154.002, is amended to read:
154.002 OFFICERS; COMPENSATION; FEES; EXPENSES.
The Board of Barber Examiners shall annually elect a chair and secretary. It shall
adopt and use a common seal for the authentication of its orders and records. The board
shall appoint an executive secretary who or enter into an interagency agreement to procure
the services of an executive secretary. The executive secretary shall not be a member of
the board and who shall be in the unclassified civil service. The position of executive
secretary may be a part-time position.
The executive secretary shall keep a record of all proceedings of the board. The
expenses of administering this chapter shall be paid from the appropriations made to
the Board of Barber Examiners.
Each member of the board shall take the oath provided by law for public officers.
A majority of the board, in meeting assembled, may perform and exercise all the
duties and powers devolving upon the board.
The members of the board shall receive compensation for each day spent on board
activities, but not to exceed 20 days in any calendar month nor 100 days in any calendar
year.
The board shall have authority to employ such inspectors, clerks, deputies, and other
assistants as it may deem necessary to carry out the provisions of this chapter.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2009 Supplement, section 154.003, is amended to read:
154.003 FEES.
    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
board, shall be paid to the executive secretary of the board. The executive secretary board
shall deposit the fees in the general fund in the state treasury.
    (b) The board shall charge the following fees:
    (1) examination and certificate, registered barber, $65 $85;
    (2) examination and certificate, apprentice, $60 $80;
    (3) examination, instructor, $160 $180;
    (4) certificate, instructor, $45 $65;
    (5) temporary teacher or apprentice permit, $60 $80;
    (6) renewal of license, registered barber, $60 $80;
    (7) renewal of license, apprentice, $50 $70;
    (8) renewal of license, instructor, $60 $80;
    (9) renewal of temporary teacher permit, $45 $65;
    (10) student permit, $25 $45;
    (11) initial shop registration, $65 $85;
    (12) initial school registration, $1,010 $1,030;
    (13) renewal shop registration, $65 $85;
    (14) renewal school registration, $260 $280;
    (15) restoration of registered barber license, $75 $95;
    (16) restoration of apprentice license, $70 $90;
    (17) restoration of shop registration, $85 $105;
    (18) change of ownership or location, $35 $55;
    (19) duplicate license, $20 $40; and
    (20) home study course, $75; and $95.
    (21) registration of hair braiders, $20 per year.

    Sec. 5. Minnesota Statutes 2009 Supplement, section 155A.23, is amended by adding a
subdivision to read:
    Subd. 5a. Individual license. "Individual license" means a license described in
section 155A.25, subdivision 1, paragraph (a), clauses (1) and (2).

    Sec. 6. Minnesota Statutes 2009 Supplement, section 155A.24, subdivision 2, is
amended to read:
    Subd. 2. Hiring and assignment of employees. The board has the authority to hire
qualified personnel in the classified service to assist in administering the law, including
those for the testing and licensing of applicants and the continuing inspections required.
All staff must receive periodic training to improve and maintain customer service skills.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding a
subdivision to read:
    Subd. 3. Feedback. The board must provide access on its Web site for customers to
provide feedback on interaction with the board and board staff. The information posted to
the Web site by customers must be readily accessible to the public. The board must also
record each complaint it receives, the board's response, and the time elapsed in responding
to and resolving each complaint.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding a
subdivision to read:
    Subd. 4. Report. The board must report by January 15 each year to the standing
committees of the house of representatives and the senate having jurisdiction over the
board on its customer service training and its complaint resolution activities.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 9. Minnesota Statutes 2009 Supplement, section 155A.25, is amended to read:
155A.25 COSMETOLOGY FEES; LICENSE EXPIRATION DATE.
    Subdivision 1. Schedule. The fee schedule for licensees is as follows for licenses
issued prior to July 1, 2010, and after June 30, 2013:
(a) Three-year license fees:
(1) cosmetologist, manicurist, esthetician, $90 for each initial license, and $60 for
each renewal;
(2) instructor, manager, $120 for each initial license, and $90 for each renewal;
(3) salon, $130 for each initial license, and $100 for each renewal; and
(4) school, $1,500.
(b) Penalties:
(1) reinspection fee, variable;
(2) manager and owner with lapsed practitioner, $150 each;
(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and
instructor license, $45; and
(4) expired salon or school license, $50.
(c) Administrative fees:
(1) certificate of identification, $20;
(2) school original application, $150;
(3) name change, $20;
(4) letter of license verification, $30;
(5) duplicate license, $20;
(6) processing fee, $10; and
(7) special event permit, $75 per year; and
(8) registration of hair braiders, $20 per year.
(d) All fees established in this subdivision must be paid to the executive secretary
of the board. The executive secretary of the board shall deposit the fees in the general
fund in the state treasury.
    Subd. 1a. Schedule. The fee schedule for licensees is as follows for licenses issued
after June 30, 2010, and prior to July 1, 2013:
(a) Three-year license fees:
(1) cosmetologist, manicurist, or esthetician:
(i) $90 for each initial license and a $40 nonrefundable initial license application fee,
for a total of $130; and
(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for
a total of $75;
(2) instructor or manager:
(i) $120 for each initial license and a $40 nonrefundable initial license application
fee, for a total of $160; and
(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a
total of $105;
(3) salon:
(i) $130 for each initial license and a $100 nonrefundable initial license application
fee, for a total of $230; and
(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a
total of $150; and
(4) school:
(i) $1,500 for each initial license and a $1,000 nonrefundable initial license
application fee, for a total of $2,500; and
(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee,
for a total of $2,000.
(b) Penalties:
(1) reinspection fee, variable;
(2) manager and owner with lapsed practitioner, $150 each;
(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and
instructor license, $45; and
(4) expired salon or school license, $50.
(c) Administrative fees:
(1) certificate of identification, $20;
(2) name change, $20;
(3) letter of license verification, $30;
(4) duplicate license, $20;
(5) processing fee, $10;
(6) special event permit, $75 per year; and
(7) registration of hair braiders, $20 per year.
    Subd. 1b. Fees disposition; appropriation. (a) All fees established in subdivisions
1 and 1a must be paid to the executive secretary of the board.
(b) The executive secretary of the board shall deposit all fees in the general fund
in the state treasury.
    Subd. 2. Refunds. Refunds shall be given in the following situations: overpayment;
death or permanent disability before the effective date of a license; or an individual's
ineligibility for licensure. Applicants determined ineligible to receive a license will be
refunded the license fee minus any processing fee and minus any application fee this
section requires.
    Subd. 3. Other licenses. A licensee who applies for licensing in a second category
shall pay the full license fee and application fee for the second category of license.
    Subd. 4. License expiration date. The board shall, in a manner determined by the
board and without the need for rulemaking under chapter 14, phase in changes to initial
and renewal license expiration dates so that by January 1, 2014:
(1) individual licenses expire on the last day of the licensee's birth month of the
year due; and
(2) salon licenses expire on the last day of the month of initial licensure of the
year due.
    Subd. 5. Board must approve or deny application; timeline. Within 15 working
days of receiving a complete application and the required fees for an initial or renewal
individual or salon license, the board must (1) either grant or deny the application, (2)
issue the license or notify the applicant of the denial, or (3) issue a temporary license to an
applicant for whom no record exists regarding: (i) a complaint filed with the board against
the applicant; or (ii) a negative action by the board against the applicant.

    Sec. 10. Minnesota Statutes 2008, section 326B.148, subdivision 1, is amended to read:
    Subdivision 1. Computation. To defray the costs of administering sections
326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in
connection with the construction of or addition or alteration to buildings and equipment or
appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge
receipts to award grants for code research and development and education.
    If the fee for the permit issued is fixed in amount the surcharge is equivalent to
one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June
30, 2011, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5,
whichever amount is greater. For all other permits, the surcharge is as follows:
    (1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the
surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition,
or alteration;
    (2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths
mill (.0004) of the value between $1,000,000 and $2,000,000;
    (3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths
mill (.0003) of the value between $2,000,000 and $3,000,000;
    (4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth
mill (.0002) of the value between $3,000,000 and $4,000,000;
    (5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth
mill (.0001) of the value between $4,000,000 and $5,000,000; and
    (6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth
mill (.00005) of the value that exceeds $5,000,000.

    Sec. 11. RULEMAKING.
    Subdivision 1. Conforming changes. The Board of Cosmetologist Examiners
must amend Minnesota Rules, parts 2105.0200 and 2105.0330, to conform to the license
expiration date requirements of Minnesota Statutes, section 155A.25, subdivision 4, by
specifying that individual or salon licenses expire on the last day of an individual's birth
month of the year due, or on the last day of the month of initial licensure of the year due.
    Subd. 2. Good cause exemption. The Board of Cosmetologist Examiners must use
the good cause exemption under Minnesota Statutes, section 14.388, subdivision 1, clause
(3), to adopt the rules required by this section. Minnesota Statutes, section 14.386, does
not apply except as provided in Minnesota Statutes, section 14.388.

    Sec. 12. Minnesota Statutes 2008, section 116U.26, is amended to read:
116U.26 FILM PRODUCTION JOBS 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 or Internet 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 feature film, television or Internet show, documentary, music
video, or television commercial, whether on film, video, or digital media. 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.
    (c) Notwithstanding any other law to the contrary, the Minnesota Film and TV
Board may make reimbursements of: (1) up to 20 percent of film production costs for
films that locate production outside the metropolitan area, as defined in section 473.121,
subdivision 2, or that incur production costs in excess of $5,000,000 in Minnesota the
metropolitan area within a 12-month period; or (2) up to 15 percent of film production
costs for films that incur production costs of $5,000,000 or less in the metropolitan area
within a 12-month period.

ARTICLE 9
MINERALS

    Section 1. Minnesota Statutes 2009 Supplement, section 298.294, is amended to read:
298.294 INVESTMENT OF FUND.
(a) The trust fund established by section 298.292 shall be invested pursuant to law
by the State Board of Investment and the net interest, dividends, and other earnings arising
from the investments shall be transferred, except as provided in paragraph (b), on the first
day of each month to the trust and shall be included and become part of the trust fund.
The amounts transferred, including the interest, dividends, and other earnings earned
prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
commissioner of Iron Range resources and rehabilitation for deposit in a separate account
for expenditure for the purposes set forth in section 298.292. Amounts appropriated
pursuant to this section shall not cancel but shall remain available unless expended.
(b) For fiscal years 2010 and 2011 only, $1,000,000 $1,500,000 of the net interest,
dividends, and other earnings under paragraph (a) shall be transferred to a special account.
Funds in the special account are available for loans or grants to businesses, with priority
given to businesses with 25 or fewer employees. Funds may be used for wage subsidies
for up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
short-term operating expenses and purchase of equipment and materials by businesses
under financial duress, that will create additional jobs in the taconite assistance area under
section 273.1341. Expenditures from the special account must be approved by at least
seven Iron Range Resources and Rehabilitation Board members.
(c) To qualify for a grant or loan, a business must be currently operating and have
been operating for one year immediately prior to its application for a loan or grant, and its
corporate headquarters must be located in the taconite assistance area.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Laws 2009, chapter 78, article 7, section 2, is amended to read:
    Sec. 2. IRON RANGE RESOURCES AND REHABILITATION; EARLY
SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
(a) Notwithstanding any law to the contrary, the commissioner of Iron Range
resources and rehabilitation, in consultation with the commissioner of management and
budget, may shall offer a targeted early separation incentive program for employees of the
commissioner who have attained the age of 60 years or who have received credit for at
least 30 years of allowable service under the provisions of Minnesota Statutes, chapter 352.
(b) The early separation incentive program may include one or more of the following:
(1) employer-paid postseparation health, medical, and dental insurance until age
65; and
(2) cash incentives that may, but are not required to be, used to purchase additional
years of service credit through the Minnesota State Retirement System, to the extent that
the purchases are otherwise authorized by law.
(c) The commissioner of Iron Range resources and rehabilitation shall establish
eligibility requirements for employees to receive an incentive.
(d) The commissioner of Iron Range resources and rehabilitation, consistent with the
established program provisions under paragraph (b), and with the eligibility requirements
under paragraph (c), may designate specific programs or employees as eligible to be
offered the incentive program.
(e) Acceptance of the offered incentive must be voluntary on the part of the
employee and must be in writing. The incentive may only be offered at the sole discretion
of the commissioner of Iron Range resources and rehabilitation.
(f) The cost of the incentive is payable solely by funds made available to the
commissioner of Iron Range resources and rehabilitation by law, but only on prior approval
of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.
(g) This section and section 3 are repealed June 30, 2011 December 31, 2012.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. 2010 DISTRIBUTIONS ONLY.
    For distributions in 2010 only, a special fund is established to receive 28.757 cents
per ton that otherwise would be allocated under Minnesota Statutes, section 298.28,
subdivision 6:
    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide
incentives for at least two dentists to establish dental practices in high-need areas of the
taconite tax relief area;
(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
heat at the Olcott Park Greenhouse/Virginia Commons project;
(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety
repairs at the Miners Memorial;
(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction
of Highway 142/Grant and Park Avenues;
(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for
upgrades and capital improvements to the public arena in Coleraine;
(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
pumphouse modifications;
(7) 0.159 cent per ton must be paid to the city of Bovey for residential and
commercial claims for water damage due to water and flood-related damage caused by
the Canisteo Pit;
(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and
child care center;
(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer
upgrades;
(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and
library project;
(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of
water and sewer services for Lakewood Housing;
(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at
the Children's Museum;
(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
corrections. This amount must be matched by local sources;
(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road
railroad crossing;
(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and
striping of the community center parking lot;
(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure
improvements, milling, and overlay for Summit Street between Alaska Avenue and
Highway 135;
(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
replacements and improvements in the Northeast Lower Alley area;
(22) 0.637 cent per ton must be paid to the town of White for replacement of the
Stepetz Road culvert;
(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
Street and associated infrastructure;
(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site
improvements at the Park Ridge development;
(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure
and site preparation for its renewable and sustainable energy park;
(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer
improvements;
(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road
rebuilding for the Summit Addition;
(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
improvements;
(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and
sewer infrastructure improvements;
(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
improvements;
(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge
improvements and industrial park land purchase;
(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
improvements;
(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer
improvements;
(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
improvements;
(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer
improvements;
(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
improvements;
(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure
improvements;
(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
infrastructure improvements;
(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
improvements at the athletic facility;
(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
improvements;
(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for
infrastructure related to a housing development;
(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to
a nonprofit for a signage kiosk;
(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer
lines and adjacent development near County State-Aid Highway 24; and
(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic
wall infrastructure around the athletic complex.
EFFECTIVE DATE.This section is effective for the 2010 distribution, all of which
must be made in the August 2010 payment.

ARTICLE 10
TRANSPORTATION


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, or reductions in
appropriations, by fund, made in this article.

2010
2011
Total

General
$
-0-
$
(14,650,000)
$
(14,650,000)

Trunk Highway
-0-
117,000,000
117,000,000

Total
$
-0-
$
102,350,000
$
102,350,000


Sec. 2. APPROPRIATIONS.
The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 36, article 1,
to the agencies and for the purposes specified in this article. The appropriations and
reductions are from the trunk highway fund or another named fund, and are available
for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in
this article mean that the addition to or subtraction from the appropriation listed under
them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
Supplemental appropriations and reductions to appropriations for the fiscal year ending
June 30, 2010, are effective the day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. DEPARTMENT OF
TRANSPORTATION

Subdivision 1.Total Appropriation
$
-0-
$
115,265,000

Appropriations by Fund

2010
2011

General
-0-
(1,735,000)

Trunk Highway
-0-
117,000,000
The amounts that may be spent or must be
reduced for each purpose are specified in the
following subdivisions.

Subd. 2.Multimodal Systems

(a) Transit
-0-
(1,685,000)
This reduction is from the appropriation
from the general fund for transit assistance in
Laws 2009, chapter 36, article 1, section 3,
subdivision 2, paragraph (b).
The base appropriation from the general
fund for fiscal years 2012 and 2013 is
$16,301,000.

(b) Freight
-0-
(50,000)
This reduction is from the appropriation from
the general fund for freight and commercial
vehicle operations in Laws 2009, chapter 36,
article 1, section 3, subdivision 2, paragraph
(d).

Subd. 3.State Roads

(a) State Road Construction
-0-
112,000,000
This appropriation is for state road
construction, and is added to appropriations
under Laws 2009, chapter 36, article 1,
section 3, subdivision 3, paragraph (b),
clause (2). This additional appropriation
is funded by additional federal highway
aid of $112,000,000 above that specified in
Laws 2009, chapter 36, article 1, section 3,
subdivision 3, paragraph (b), clause (2). This
is a onetime appropriation.

(b) Federal Emergency Relief Account
-0-
5,000,000
This appropriation is for deposit in the
trunk highway emergency relief account,
as defined in Minnesota Statutes, section
161.04, subdivision 5, for the purposes of
that account. This is a onetime appropriation.


Sec. 4. METROPOLITAN COUNCIL
$
-0-
$
(12,915,000)
This reduction is from the appropriation from
the general fund for bus system operations
in Laws 2009, chapter 36, article 1, section
4, subdivision 2.
The base appropriation from the general fund
for fiscal years 2012 and 2013 is $61,302,000
for each year.

    Sec. 5. Minnesota Statutes 2008, section 161.04, is amended by adding a subdivision
to read:
    Subd. 5. Trunk highway emergency relief account. (a) The trunk highway
emergency relief account is created in the trunk highway fund. Money in the account
is appropriated to the commissioner to be used to fund relief activities related to an
emergency, as defined in section 161.32, subdivision 3.
(b) Reimbursements by the Federal Highway Administration for emergency relief
payments made from the trunk highway emergency relief account must be credited to the
account. Interest accrued on the account must be credited to the account. Notwithstanding
section 16A.28, money in the account is available until spent. If the balance of the account
at the end of a fiscal year is greater than $10,000,000, the amount above $10,000,000
must be canceled to the trunk highway fund.
(c) By September 1, 2012, and in every subsequent even-numbered year by
September 1, the commissioner shall submit a report to the chairs and ranking minority
members of the senate and house of representatives committees having jurisdiction over
transportation policy and finance. The report must include the balance, as well as details
of payments made from and deposits made to the trunk highway emergency relief account
since the last report.

    Sec. 6. REPEALER.
Minnesota Statutes 2008, sections 13.721, subdivision 4; and 221.0355, subdivisions
1, 2, 3, 4, 5, 6, 7, 7a, 8, 9, 10, 11, 12, 13, 14, 16, 17, and 18, are repealed.

ARTICLE 11
PUBLIC SAFETY


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(8,043,000)
$
(14,608,000)
$
(22,651,000)

Special Revenue
(8,000)
2,083,000
2,075,000

Total
$
(8,051,000)
$
(12,525,000)
$
(20,576,000)


Sec. 2. APPROPRIATIONS.
The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. SUPREME COURT

Subdivision 1.Total Appropriation
$
(479,000)
$
(972,000)
The appropriation reductions for each
purpose are specified in the following
subdivisions.

Subd. 2.Supreme Court Operations
(339,000)
(688,000)

Subd. 3.Civil Legal Services
(140,000)
(284,000)


Sec. 4. COURT OF APPEALS
$
(107,000)
$
(217,000)


Sec. 5. TRIAL COURTS
$
(2,732,000)
$
(5,549,000)
Existing drug courts shall be maintained at
their current levels.


Sec. 6. TAX COURT
$
(12,000)
$
(25,000)


Sec. 7. UNIFORM LAWS COMMISSION
$
-0-
$
(2,000)


Sec. 8. BOARD ON JUDICIAL STANDARDS
$
(10,000)
$
(14,000)


Sec. 9. BOARD OF PUBLIC DEFENSE
$
(591,000)
$
(1,302,000)


Sec. 10. PUBLIC SAFETY

Subdivision 1.Total Appropriation
$
(1,038,000)
$
1,517,000

Appropriations by Fund

General
(1,038,000)
(483,000)

Special Revenue
-0-
2,000,000
The appropriation additions or reductions for
each purpose are specified in the following
subdivisions.

Subd. 2.Emergency Management

(a) State Match
-0-
1,600,000
This onetime appropriation is to provide a
match for FEMA money received for natural
disaster assistance payments and is added
to appropriations in Laws 2009, chapter 83,
article 1, section 10, subdivision 2.

(b) General Reduction
(29,000)
(57,000)

Subd. 3.Criminal Apprehension
(539,000)
(1,075,000)
The commissioner may not eliminate or leave
open positions for forensic lab scientists in
order to balance the department's budget.

Subd. 4.Fire Marshal
-0-
2,000,000
This onetime appropriation is from the fire
safety account in the special revenue fund
and is for fire safety purposes as determined
by the commissioner with the advice of the
Fire Service Advisory Committee.
This appropriation is available until June 30,
2012.

Subd. 5.Gambling and Alcohol Enforcement
(25,000)
(49,000)

Subd. 6.Office of Justice Programs
(445,000)
(902,000)
Of the fiscal year 2011 reduction in this
subdivision, funding for the following
programs must not be reduced by more than
1.5 percent: (1) battered women's shelters
and domestic violence programs; (2) general
crime victim programs; (3) sexual assault
victim programs; and (4) youth intervention
programs. This 1.5 percent reduction is in
addition to the three percent reduction in
Laws 2009, chapter 83, article 1, section 10,
subdivision 6.


Sec. 11. PRIVATE DETECTIVE BOARD
$
(2,000)
$
(3,000)


Sec. 12. HUMAN RIGHTS
$
(59,000)
$
(103,000)


Sec. 13. CORRECTIONS

Subdivision 1.Total Appropriation
$
(3,002,000)
$
(5,920,000)
The appropriation reductions for each
purpose are specified in the following
subdivisions.

Subd. 2.Agency-wide Reduction
(2,236,000)
(4,388,000)
This reduction may be applied agency wide.
No portion of this reduction may come
from the elimination of correctional officer
positions, offender reentry programs, or
discharge planning for mentally ill offenders.

Subd. 3.Community Services
(766,000)
(1,532,000)
The commissioner must fund the equivalent
of 25 percent of state-funded sentencing
to service programs. The 25 percent
must be calculated based on fiscal year
2010 state-funded sentencing to service
expenditures.

Subd. 4.Transfers
(a) MINNCOR. Notwithstanding Minnesota
Statutes, section 241.27, the commissioner
of management and budget shall transfer
$574,000 the first year and $1,170,000 the
second year from the Minnesota correctional
industries revolving fund to the general fund.
These are onetime transfers. These transfers
are in addition to those in Laws 2009, chapter
83, article 1, section 14, subdivision 2,
paragraph (g).
(b) Various Special Revenue Accounts.
Notwithstanding any law to the contrary,
the commissioner of management and
budget shall transfer $201,000 the first year
and $402,000 the second year from the
Department of Corrections' special revenue
accounts to the general fund. These are
onetime transfers. The commissioner of
corrections shall adjust expenditures to stay
within the remaining revenues.


Sec. 14. SENTENCING GUIDELINES
$
(11,000)
$
(18,000)

    Sec. 15. Minnesota Statutes 2009 Supplement, section 16A.152, subdivision 2, is
amended to read:
    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:
    (1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;
    (2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;
    (3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;
    (4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, paragraph (b), and Laws 2003, First Special Session chapter 9,
article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
20, by the same amount; and
(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5.; and
(6) to the fire safety account in the special revenue fund, the amount necessary to
restore transfers from the account to the general fund made in Laws 2010.
    (b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.
    (c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.

    Sec. 16. Minnesota Statutes 2008, section 297I.06, subdivision 3, is amended to read:
    Subd. 3. Fire safety account, annual transfers, allocation. A special account, to
be known as the fire safety account, is created in the state treasury. The account consists
of the proceeds under subdivisions 1 and 2. $468,000 in fiscal year 2008, $4,268,000
in fiscal year 2009, $9,268,000 in fiscal year 2010, $5,968,000 in fiscal year 2011, and
$2,268,000 $2,368,000 in each year thereafter is transferred from the fire safety account in
the special revenue fund to the general fund to offset the loss of revenue caused by the
repeal of the one-half of one percent tax on fire insurance premiums.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 17. Minnesota Statutes 2008, section 611A.32, subdivision 2, is amended to read:
    Subd. 2. Applications. Any public or private nonprofit agency may apply to the
commissioner for a grant to provide emergency shelter services to battered women,
support services to domestic abuse victims, or both, to battered women and their children.
The application shall be submitted in a form approved by the commissioner by rule
adopted under chapter 14, after consultation with the advisory council, and shall include:
(1) a proposal for the provision of emergency shelter services for battered women,
support services for domestic abuse victims, or both, for battered women and their
children;
(2) a proposed budget;
(3) the agency's overall operating budget, including documentation on the retention
of financial reserves and availability of additional funding sources;
(3) (4) evidence of an ability to integrate into the proposed program the uniform
method of data collection and program evaluation established under sections 611A.33
and 611A.34;
(4) (5) evidence of an ability to represent the interests of battered women and
domestic abuse victims and their children to local law enforcement agencies and courts,
county welfare agencies, and local boards or departments of health;
(5) (6) evidence of an ability to do outreach to unserved and underserved populations
and to provide culturally and linguistically appropriate services; and
(6) (7) any other content the commissioner may require by rule adopted under
chapter 14, after considering the recommendations of the advisory council.
Programs which have been approved for grants in prior years may submit materials
which indicate changes in items listed in clauses (1) to (6) (7), in order to qualify for
renewal funding. Nothing in this subdivision may be construed to require programs to
submit complete applications for each year of renewal funding.

    Sec. 18. Minnesota Statutes 2008, section 626.8458, subdivision 5, is amended to read:
    Subd. 5. In-service training in police pursuits required. The chief law
enforcement officer of every state and local law enforcement agency shall provide
in-service training in emergency vehicle operations and in the conduct of police pursuits
to every peace officer and part-time peace officer employed by the agency who the
chief law enforcement officer determines may be involved in a police pursuit given the
officer's responsibilities. The training shall comply with learning objectives developed
and approved by the board and shall consist of at least eight hours of classroom and
skills-based training every three four years.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 19. Minnesota Statutes 2008, section 641.12, is amended by adding a subdivision
to read:
    Subd. 4. Sentencing to service fees. (a) A county board may require that an
offender who participates in sentencing to service pay a fee.
    (b) A county board may assess a fee to entities that receive direct benefit from
sentencing to service work crews.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 20. Laws 2009, chapter 83, article 1, section 10, subdivision 4, is amended to read:


Subd. 4.Fire Marshal
8,125,000
15,025,000
8,125,000
13,725,000
This appropriation is from the fire safety
account in the special revenue fund.
Of this amount, $5,857,000 each $5,757,000
the first year and $7,757,000 the second year
is are for activities under Minnesota Statutes,
section 299F.012, and $2,268,000 each
$9,268,000 the first year and $5,968,000 the
second year is are for transfer to the general
fund under Minnesota Statutes, section
297I.06, subdivision 3.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 21. Laws 2009, chapter 83, article 1, section 11, is amended to read:


Sec. 11. PEACE OFFICER STANDARDS
AND TRAINING BOARD (POST)
$
4,012,000
4,004,000
$
4,012,000
4,095,000
(a) Excess Amounts Transferred. This
appropriation is from the peace officer
training account in the special revenue fund.
Any new receipts credited to that account
in the first year in excess of $4,012,000
$4,004,000 must be transferred and credited
to the general fund. Any new receipts
credited to that account in the second year
in excess of $4,012,000 $4,095,000 must be
transferred and credited to the general fund.
(b) Peace Officer Training
Reimbursements. $2,859,000 each
the first year and $2,959,000 the second
year is are for reimbursements to local
governments for peace officer training
costs. The base budget for this activity
is $2,859,000 for fiscal year 2012 and
$2,859,000 for fiscal year 2013.
(c) Prohibition on Use of Appropriation.
No portion of this appropriation may be
used for the purchase of motor vehicles
or out-of-state travel that is not directly
connected with and necessary to carry out
the core functions of the board.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 22. Laws 2009, chapter 83, article 1, section 14, subdivision 2, is amended to read:

Subd. 2.Correctional Institutions
334,341,000
338,199,000

Appropriations by Fund

General
295,761,000
337,619,000

Special Revenue
580,000
580,000

Federal
38,000,000
0
$38,000,000 the first year is from the fiscal
stabilization account in the federal fund. This
is a onetime appropriation.
The general fund base for this program shall
be $326,085,000 in fiscal year 2012 and
$330,430,000 in fiscal year 2013.
(a) Treatment Alternatives; Report. By
December 15, 2009, the commissioner
must submit an electronic report to the
chairs and ranking minority members of
the house of representatives and senate
committees with jurisdiction over public
safety policy and finance concerning
alternative chemical dependency treatment
opportunities. The report must identify
alternatives that represent best practices in
chemical dependency treatment of offenders.
The report must contain suggestions for
reducing the length of time between
offender commitment to the custody of the
commissioner and graduation from chemical
dependency treatment. To the extent
possible, the report shall identify options
that will (1) reduce the cost of treatment;
(2) expand the number of treatment beds;
(3) improve treatment outcomes; and (4)
lower the rate of substance abuse relapse and
criminal recidivism.
(b) Challenge Incarceration; Maximum
Occupancy. The commissioner shall work to
fill all available challenge incarceration beds
for both male and female offenders. If the
commissioner fails to fill at least 90 percent
of the available challenge incarceration beds
by December 1, 2009, the commissioner
must submit a report to the chairs and
ranking minority members of the house of
representatives and senate committees with
jurisdiction over public safety policy and
finance by January 15, 2010, explaining what
steps the commissioner has taken to fill the
beds and why those steps failed to reach the
goal established by the legislature.
(c) Institutional Efficiencies. The
commissioner shall strive for institutional
efficiencies and must reduce the fiscal year
2008 average adult facility per diem of
$89.77 by one percent. The base is cut by
$2,850,000 in the first year and $2,850,000
in the second year to reflect a one percent
reduction in the projected adult facility per
diem. In reducing the projected adult facility
per diem, the commissioner must consider
the following:
(1) cooperating with the state of Wisconsin
to obtain economies of scale;
(2) increasing the bed capacity of the
challenge incarceration program;
(3) increasing the number of nonviolent drug
offenders who are granted conditional release
under Minnesota Statutes, section 244.055;
(4) increasing the use of compassionate
release or less costly detention alternatives
for elderly and infirm offenders;
(5) discontinuing the department's practice
of annually assigning a warden to serve as
a legislative liaison during the legislative
session;
(6) consolidating staff from correctional
institutions in geographical proximity to each
other to achieve efficiencies and cost savings,
including wardens, deputy wardens, and
human resources, technology, and employee
development personnel;
(7) consolidating the department's human
resources, technology, and employee
development functions in a centralized
location;
(8) implementing corrections best practices;
and
(9) implementing cost-saving measures used
by other states and the federal government.
The commissioner must not eliminate
correctional officer positions or implement
any other measure that will jeopardize public
safety to achieve the mandated cost savings.
The commissioner also must not eliminate
treatment beds to achieve the mandated cost
savings.
(d) Per Diem Reduction. If the
commissioner fails to reduce the per diem by
one percent, the commissioner must:
(1) reduce the funding for operations support
by the amount of unrealized savings; and
(2) submit a report by February 15,
2010, to the chairs and ranking minority
members of the house of representatives
and senate committees with jurisdiction
over public safety policy and finance that
contains descriptions of what efforts the
commissioner made to reduce the per diem,
explanations for why those steps failed to
reduce the per diem by one percent, proposed
legislative options that would assist the
commissioner in reducing the adult facility
per diem, and descriptions of the specific
actions the commissioner took to reduce
funding in operations support.
If the commissioner reduces the per diem
by more than one percent, the commissioner
must use the savings to provide treatment to
offenders.
(e) Reductions to Certain Programming
Prohibited. When allocating reductions
in services and programming under this
appropriation, the commissioner may not
make reductions to inmate educational
programs, chemical dependency programs,
or reentry programs.
(f) (e) Drug Court Bed Savings. The
commissioner must consider the bed impact
savings of drug courts in formulating its
prison bed projections.
(g) (f) Transfer. Notwithstanding Minnesota
Statutes, section 241.27, the commissioner
of finance shall transfer $1,000,000 the first
year and $1,000,000 the second year from the
Minnesota Correctional Industries revolving
fund to the general fund.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. PROPOSED SENTENCING GUIDELINES' CHANGES DELAYED.
The proposed changes to the sentencing guidelines relating to the crimes of
solicitation, inducement, and promotion of prostitution and sex trafficking, and riot
described on pages 8 to 9 and Appendix E of the Minnesota Sentencing Guidelines
Commission's January 2010 report to the legislature take effect on August 1, 2011.
EFFECTIVE DATE.This section is effective the day following final enactment.

ARTICLE 12
STATE GOVERNMENT


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(3,545,000)
$
(2,345,000)
$
(5,890,000)

Special Revenue
(19,000)
(29,000)
(48,000)

Total
$
(3,564,000)
$
(2,374,000)
$
(5,938,000)


Sec. 2. APPROPRIATIONS.
The sums shown in the columns marked "APPROPRIATIONS" are added to or, if
shown in parentheses, subtracted from the appropriations in Laws 2009, chapter 101,
article 1, to the agencies and for the purposes specified in this article. The appropriations
are from the general fund, or another named fund, and are available for the fiscal years
indicated for each purpose. The figures "2010" and "2011" used in this article mean
that the addition to or subtraction from the appropriation listed under them is available
for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Supplemental
appropriations and reductions to appropriations for the fiscal year ending June 30, 2010,
are effective the day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. LEGISLATURE

Subdivision 1.Total Appropriation
$
(221,000)
$
(1,352,000)

Subd. 2.Senate
-0-
(445,000)
$205,000 in fiscal year 2010 and $223,000
in fiscal year 2011 is canceled to the general
fund from the senate carryforward account
established under Minnesota Statutes, section
16A.281. These are onetime transfers.

Subd. 3.House of Representatives
-0-
(599,000)
$395,000 in fiscal year 2010 and $299,000
in fiscal year 2011 is canceled to the general
fund from the house of representatives
carryforward account established under
Minnesota Statutes, section 16A.281. These
are onetime transfers.
During the biennium ending June 30, 2011,
any revenues received by the house of
representatives from voluntary donations
to support broadcast or print media are
appropriated to the house of representatives.

Subd. 4.Legislative Coordinating Commission
(221,000)
(308,000)
$154,000 in fiscal year 2011 is canceled
to the general fund from the carryforward
accounts in the Legislative Coordinating
Commission established under Minnesota
Statutes, section 16A.281. This is a onetime
transfer.



Sec. 4. GOVERNOR AND LIEUTENANT
GOVERNOR
$
(64,000)
$
(146,000)
$10,000 in fiscal year 2010 and $32,000
in fiscal year 2011 are transferred from
the interagency agreements account in the
special revenue fund to the general fund.
These are onetime transfers.


Sec. 5. STATE AUDITOR
$
(32,000)
$
(78,000)


Sec. 6. ATTORNEY GENERAL
$
(436,000)
$
(954,000)


Sec. 7. SECRETARY OF STATE
$
(104,000)
$
(250,000)



Sec. 8. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
$
(28,000)
$
(8,000)
The base budget for the Campaign Finance
and Public Disclosure Board is $726,000 in
fiscal year 2012 and $726,000 in fiscal year
2013.


Sec. 9. INVESTMENT BOARD
$
(2,000)
$
(5,000)



Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY
$
(111,000)
$
(169,000)
These reductions are from the enterprise
planning and management program.


Sec. 11. ADMINISTRATIVE HEARINGS
$
(8,000)
$
(8,000)


Sec. 12. ADMINISTRATION
$
-0-
$
(419,000)
(a) These reductions are from the government
and citizens services program. $8,000 of
the reductions in fiscal year 2011 is
from the transfer to the commissioner
of human services for a grant to the
Council of Developmental Disabilities. The
appropriation for this grant shall be included
in the base budget for the commissioner of
human services for the biennium beginning
July 1, 2011, and is reduced by $8,000 each
year of the biennium. The general fund
base budget for the government and citizens
services program is $8,936,000 in fiscal year
2012 and $8,936,000 in fiscal year 2013.
(b) $209,000 in fiscal year 2010 and $31,000
in fiscal year 2011 are transferred from the
central stores fund to the general fund. This
is a onetime transfer.
(c) The balance in the commuter van program
account in the special revenue fund shall be
transferred to the general fund on or before
June 30, 2010. This is a onetime transfer.
(d) The balance in the archaeology burial
account of the special revenue fund shall be
transferred to the general fund on or before
June 30, 2010. This is a onetime transfer.
(e) $1,492 in fiscal year 2010 is transferred
from the utility rebates account in the special
revenue fund to the general fund. This is a
onetime transfer.




Sec. 13. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD
$
(6,000)
$
(11,000)


Sec. 14. MANAGEMENT AND BUDGET
$
(386,000)
$
(599,000)
(a) $300 in fiscal year 2010 and $300 in
fiscal year 2011 are transferred from the
combined charities administration account in
the special revenue fund to the general fund.
These are onetime transfers.
(b) $8,700 in fiscal year 2010 and $10,700
in fiscal year 2011 are transferred from the
information systems division account in the
special revenue fund to the general fund.
These are onetime transfers.


Sec. 15. REVENUE
$
(768,000)
$
5,379,000
(a) $6,727,000 in 2011 is for additional
activities to identify and collect tax liabilities
from individuals and businesses that currently
do not pay all taxes owed. $235,000 of
this appropriation is for a training and
mentoring initiative for personnel paid from
this appropriation. This initiative is expected
to result in new general fund revenues of
$26,865,000 for the biennium ending June
30, 2011.
(b) The department must report to the chairs
and ranking minority members of the house
of representative Ways and Means and senate
Finance Committees by March 15, 2011,
and January 15, 2012, on the following
performance indicators:
(1) the number of corporations noncompliant
with the corporate tax system each year and
the percentage and dollar amounts of valid
tax liabilities collected;
(2) the number of businesses noncompliant
with the sales and use tax system and the
percentage and dollar amount of the valid tax
liabilities collected; and
(3) the number of individual noncompliant
cases resolved and the percentage and dollar
amount of valid tax liabilities collected.
(c) The reports must also identify base-level
expenditures and staff positions related to
compliance and audit activities, including
baseline information as of January 1, 2009.
The information must be provided at the
budget activity level.


Sec. 16. RACING COMMISSION
$
(19,000)
$
(29,000)
$19,000 in fiscal year 2010 and $29,000 in
fiscal year 2011 are transferred from the
racing and card playing regulation accounts
in the special revenue fund to the general
fund. These are onetime transfers.


Sec. 17. AMATEUR SPORTS COMMISSION
$
(4,000)
$
(9,000)



Sec. 18. COUNCIL ON BLACK
MINNESOTANS
$
(5,000)
$
(9,000)



Sec. 19. COUNCIL ON CHICANO/LATINO
AFFAIRS
$
(6,000)
$
(9,000)



Sec. 20. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
$
(5,000)
$
(8,000)


Sec. 21. INDIAN AFFAIRS COUNCIL
$
(9,000)
$
(14,000)



Sec. 22. GENERAL CONTINGENT
ACCOUNTS
$
(750,000)
$
-0-
This reduction is from the appropriation for
potential state matching requirements under
the American Reinvestment and Recovery
Act of 2009.

    Sec. 23. Minnesota Statutes 2008, section 4.51, is amended to read:
4.51 EXPENSES OF GOVERNOR-ELECT.
    Subdivision 1. Definitions. This section applies after a state general election
in which a person who is not the current governor is elected to take office as the next
governor. The commissioner of administration must request a transfer from the general
fund contingent account of an amount equal to 1.5 percent of the amount appropriated
for operation of the Office of the Governor and Lieutenant Governor for the current
fiscal year. This request is subject to the review and advice of the Legislative Advisory
Commission pursuant to section 3.30. If the transfer is approved, the commissioner of
administration must make this amount available to the governor-elect before he or she
takes office. The commissioner must provide office space for the governor-elect and for
any employees the governor-elect hires. (a) "Governor-elect" means the person who is
not currently governor and is the apparent successful candidate for the office of governor
following a general election.
(b) "Commissioner" means the commissioner of the Department of Management
and Budget.
    Subd. 2. Transition expenses. In the fiscal year of a gubernatorial election and
subject to availability of funds, the commissioner shall transfer up to $162,000 from the
general contingent account in the general fund to the Department of Management and
Budget. This transfer is subject to the review and advice of the Legislative Advisory
Commission pursuant to section 3.30. In consultation with the governor-elect, the
commissioner shall use the transferred funds to pay expenses of the governor-elect
associated with preparing for the assumption of official duties as governor. The
commissioner may use the transferred funds for expenses necessary and prudent for
establishment of a transition office prior to the election and for dissolution of the office if
the incumbent governor is reelected or after the inauguration of a new governor. Expenses
of the governor-elect may include suitable office space and equipment, communications
and technology support, consulting services, compensation and travel costs, and other
reasonable expenses. Compensation rates for temporary employees hired to support the
governor-elect and rates paid for consulting services for the governor-elect shall be
determined by the governor-elect.
    Subd. 3. Unused funds. No new obligations shall be incurred for expenses of
the governor-elect after the date of the inauguration. By March 31 of the year of the
inauguration, the commissioner shall return to the general contingent account any funds
transferred under this section that the commissioner determines are not needed to pay
expenses of the governor-elect.

    Sec. 24. Minnesota Statutes 2009 Supplement, section 16A.82, is amended to read:
16A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
$3,548,000 in fiscal year 2010; $3,546,000 in fiscal year 2011; and $10,054,000 in
each fiscal year 2012 through 2019 The following amounts are appropriated from the
general fund to the commissioner to make payments under a lease-purchase agreement
as defined in section 16A.81 for replacement of the state's accounting and procurement
systems, provided that the state is not obligated to continue such appropriation of funds or
to make lease payments in any future fiscal year.

Fiscal year 2010
$2,828,038

Fiscal year 2011
$3,063,950

Fiscal year 2012
$8,967,850

Fiscal year 2013
$8,968,950

Fiscal year 2014
$8,970,850

Fiscal year 2015
$8,971,150

Fiscal year 2016
$8,966,450

Fiscal year 2017
$8,967,500

Fiscal year 2018
$8,970,750

Fiscal year 2019
$8,968,500
Of these appropriations, up to $2,000 per year may be used to pay the annual trustee
fees for the lease-purchase agreements authorized in this section and section 270C.145.
Any unexpended portions of this appropriation cancel to the general fund at the close of
each biennium. This section expires June 30, 2020 2019.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 25. Minnesota Statutes 2008, section 16B.04, subdivision 2, is amended to read:
    Subd. 2. Powers and duties, generally. Subject to other provisions of this chapter,
the commissioner is authorized to:
    (1) supervise, control, review, and approve all state contracts and purchasing;
    (2) provide agencies with supplies and equipment and operate all central store or
supply rooms serving more than one agency;
    (3) investigate and study the management and organization of agencies, and
reorganize them when necessary to ensure their effective and efficient operation;
    (4) manage and control state property, real and personal;
    (5) maintain and operate all state buildings, as described in section 16B.24,
subdivision 1
;
    (6) supervise, control, review, and approve all capital improvements to state
buildings and the capitol building and grounds;
    (7) provide central duplicating, printing, and mail facilities;
    (8) oversee publication of official documents and provide for their sale;
    (9) manage and operate parking facilities for state employees and a central motor
pool for travel on state business;
    (10) provide rental space within the capitol complex for a private day care center for
children of state employees. The commissioner shall contract for services as provided
in this chapter; and
(11) settle state employee workers' compensation claims.; and
(12) operate a state recycling center.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 26. Minnesota Statutes 2008, section 16B.48, subdivision 2, is amended to read:
    Subd. 2. Purpose of funds. Money in the state treasury credited to the general
services revolving fund and money that is deposited in the fund is appropriated annually to
the commissioner for the following purposes:
(1) to operate a central store and equipment service;
(2) to operate the central mailing service, including purchasing postage and related
items and refunding postage deposits;
(3) to operate a documents service as prescribed by section 16B.51;
(4) to provide services for the maintenance, operation, and upkeep of buildings and
grounds managed by the commissioner of administration;
(5) to operate a materials handling service, including interagency mail and product
delivery, solid waste removal, courier service, equipment rental, and vehicle and
equipment maintenance;
(6) to provide analytical, statistical, and organizational development services to
state agencies, local units of government, metropolitan and regional agencies, and school
districts;
(7) to operate a records center and provide micrographics products and services; and
(8) to perform services for any other agency. Money may be expended for this
purpose only when directed by the governor. The agency receiving the services shall
reimburse the fund for their cost, and the commissioner shall make the appropriate
transfers when requested. The term "services" as used in this clause means compensation
paid officers and employees of the state government; supplies, materials, equipment,
and other articles and things used by or furnished to an agency; and utility services and
other services for the maintenance, operation, and upkeep of buildings and offices of
the state government.; and
(9) to operate a state recycling center.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 27. Minnesota Statutes 2008, section 115A.15, subdivision 6, is amended to read:
    Subd. 6. Use of funds. All funds appropriated by the state for the resource recovery
program, all revenues resulting from the sale of recyclable and reusable commodities made
available for sale as a result of the resource recovery program, and all reimbursements
to the commissioner of expenses incurred by the commissioner in developing and
administering resource recovery systems for state agencies, governmental units, and
nonprofit organizations must be deposited in the general fund. The commissioner shall
determine the waste disposal cost savings associated with recycling and reuse activities.
will be used by the service provider to offset the cost of the recycling.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 28. Minnesota Statutes 2009 Supplement, section 270C.145, is amended to read:
270C.145 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
$855,000 in fiscal year 2010; $853,000 in fiscal year 2011; and $2,519,000 in each
fiscal year 2012 through 2019 is The following amounts are appropriated from the general
fund to the commissioner to make payments under a lease-purchase agreement as defined
in section 16A.81 for completing the purchase and development of an integrated tax
software package; provided that the state is not obligated to continue the appropriation of
funds or to make lease payments in any future fiscal year.

Fiscal year 2010
$670,213

Fiscal year 2011
$748,550

Fiscal year 2012
$2,250,150

Fiscal year 2013
$2,251,550

Fiscal year 2014
$2,250,350

Fiscal year 2015
$2,251,550

Fiscal year 2016
$2,249,950

Fiscal year 2017
$2,251,250

Fiscal year 2018
$2,249,000

Fiscal year 2019
$2,247,000
Any unexpended portions of this appropriation cancel to the general fund at the
close of each biennium. This section expires June 30, 2019.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 29. Minnesota Statutes 2009 Supplement, section 289A.08, subdivision 16,
is amended to read:
    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee
imposed. (a) A "tax refund or return preparer," as defined in section 289A.60, subdivision
13
, paragraph (f), who prepared is a tax return preparer for purposes of section 6011(e)
of the Internal Revenue Code, and who reasonably expects to prepare more than 100
ten Minnesota individual income tax returns for the prior calendar year must file all
Minnesota individual income tax returns prepared for the current that calendar year by
electronic means.
(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
that the taxpayer did not want the return filed by electronic means.
(c) For each return that is not filed electronically by a tax refund or return preparer
under this subdivision, including returns filed under paragraph (b), a paper filing fee
of $5 is imposed upon the preparer. The fee is collected from the preparer in the same
manner as income tax. The fee does not apply to returns that the commissioner requires
to be filed in paper form.
EFFECTIVE DATE.This section is effective for tax returns filed after December
31, 2010.

    Sec. 30. Minnesota Statutes 2008, section 471.6175, subdivision 4, is amended to read:
    Subd. 4. Account maintenance. (a) A political subdivision or other public entity
may establish a trust account to be held under the supervision of the trust administrator for
the purposes of this section. A trust administrator shall establish a separate account for
each participating political subdivision or public entity. The trust administrator may charge
participating political subdivisions and public entities fees for reasonable administrative
costs. The amount of any fees charged by the Public Employees Retirement Association is
appropriated to the association from the account. A trust administrator may establish other
reasonable terms and conditions for creation and maintenance of these accounts.
    (b) The trust administrator must report to the political subdivision or other public
entity on the investment returns of invested trust assets and on all investment fees or costs
incurred by the trust. The annual rates of return, along with investment and administrative
fees and costs for the trust, must be disclosed in the political subdivision's or public entity's
annual financial audit in a manner prescribed by the state auditor.
    (c) Effective for fiscal years beginning after December 31, 2009 2013, the trust
administrator must report electronically to the state auditor the portfolio and performance
information specified in section 356.219, subdivision 3, in the manner prescribed by
the state auditor.
EFFECTIVE DATE.This section is effective retroactively from December 31,
2009.

    Sec. 31. ADDITIONAL OPERATING BUDGET REDUCTIONS.
By July 30, 2010, the commissioner of management and budget must allocate
a reduction of $3,000,000 for the fiscal year ending June 30, 2011, to the operating
budgets of executive branch state agencies, as defined in Minnesota Statutes, section
16A.011, subdivision 12a. To the extent possible, this reduction must be achieved through
estimated savings in expenditures for space, out-of-state travel, fleet management, energy
usage in state buildings, contracts for professional or technical services, and through
increased employee telecommuting, and through consolidation of information technology
functions, or through other operational efficiencies. If expenditure reductions are achieved
in dedicated funds other than those established in the state constitution or protected by
federal law, the commissioner of management and budget may transfer the amount of
the savings to the general fund. Executive branch state agencies must cooperate with
the commissioner of management and budget in developing and implementing these
reductions. Any amount of the reduction that cannot be achieved through savings in the
expenditure types described in this section must be allocated to executive state agency
operating budgets by the commissioner. Reductions in fiscal year 2011 must cancel to
the general fund and shall be reflected as reductions in agency base budgets for fiscal
years 2012 and 2013. The commissioner of management and budget must report to the
chairs and ranking minority members of the senate Finance Committee and the house
of representatives Ways and Means and Finance Committees regarding the amount of
reductions in spending by each agency under this section.

    Sec. 32. HELP AMERICA VOTE ACT.
(a) If the secretary of state determines that this state is otherwise eligible to receive
an additional payment of federal money under the Help America Vote Act, Public Law
107-252, the secretary must certify to the commissioner of management and budget the
amount, if any, needed to meet the matching requirement of section 253(b)(5) of the Help
America Vote Act. In the certification, the secretary shall specify the portion of the match
that should be taken from an unencumbered general fund appropriation to the Office of the
Secretary of State not designated for a different purpose. Upon receipt of that certification,
or as soon as an unencumbered general fund appropriation becomes available, whichever
occurs later, the commissioner must transfer the specified amount to the Help America
Vote Act account.
(b) This section expires on June 30, 2011.
EFFECTIVE DATE.This section is effective the day following final enactment.

ARTICLE 13
PROPERTY TAX AIDS AND CREDITS

    Section 1. Minnesota Statutes 2009 Supplement, section 273.111, subdivision 9,
is amended to read:
    Subd. 9. Additional taxes. (a) Except as provided in paragraph (b), when real
property which is being, or has been valued and assessed under this section no longer
qualifies under subdivision 3, the portion no longer qualifying shall be subject to additional
taxes, in the amount equal to the difference between the taxes determined in accordance
with subdivision 4, and the amount determined under subdivision 5. Provided, however,
that the amount determined under subdivision 5 shall not be greater than it would have
been had the actual bona fide sale price of the real property at an arm's-length transaction
been used in lieu of the market value determined under subdivision 5. Such additional
taxes shall be extended against the property on the tax list for the current year, provided,
however, that no interest or penalties shall be levied on such additional taxes if timely
paid, and provided further, that such additional taxes shall only be levied with respect to
the last three years that the said property has been valued and assessed under this section.
(b) Real property that has been valued and assessed under this section prior to
May 29, 2008, and that ceases to qualify under this section after May 28, 2008, and is
withdrawn from the program before May 1, 2010 August 16, 2010, is not subject to
additional taxes under this subdivision or subdivision 3, paragraph (c). If additional taxes
have been paid under this subdivision with respect to property described in this paragraph
prior to April 3, 2009, the county must repay the property owner in the manner prescribed
by the commissioner of revenue.
EFFECTIVE DATE.This section is effective for withdrawals after April 30, 2010.

    Sec. 2. Minnesota Statutes 2008, section 273.1384, is amended by adding a subdivision
to read:
    Subd. 6. Credit reduction. In 2011 and each year thereafter, the market value
credit reimbursement amount for each taxing jurisdiction determined under this section
is reduced by the dollar amount of the reduction in market value credit reimbursements
for that taxing jurisdiction in 2010 due to unallotment reductions announced prior to
February 28, 2010, under section 16A.152. No taxing jurisdiction's market value credit
reimbursements are reduced to less than zero under this subdivision. The commissioner of
revenue shall pay the annual market value credit reimbursement amounts, after reduction
under this subdivision, to the affected taxing jurisdictions as provided in this section.
EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
thereafter.

    Sec. 3. Minnesota Statutes 2009 Supplement, section 275.70, subdivision 5, is
amended to read:
    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes
levied by a local governmental unit for the following purposes or in the following manner:
    (1) to pay the costs of the principal and interest on bonded indebtedness or to
reimburse for the amount of liquor store revenues used to pay the principal and interest
due on municipal liquor store bonds in the year preceding the year for which the levy
limit is calculated;
    (2) to pay the costs of principal and interest on certificates of indebtedness issued for
any corporate purpose except for the following:
    (i) tax anticipation or aid anticipation certificates of indebtedness;
    (ii) certificates of indebtedness issued under sections 298.28 and 298.282;
    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
extraordinary expenditures that result from a public emergency; or
    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or
an insufficiency in other revenue sources;
    (3) to provide for the bonded indebtedness portion of payments made to another
political subdivision of the state of Minnesota;
    (4) to fund payments made to the Minnesota State Armory Building Commission
under section 193.145, subdivision 2, to retire the principal and interest on armory
construction bonds;
    (5) property taxes approved by voters which are levied against the referendum
market value as provided under section 275.61;
    (6) to fund matching requirements needed to qualify for federal or state grants or
programs to the extent that either (i) the matching requirement exceeds the matching
requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
exist prior to 2002;
    (7) to pay the expenses reasonably and necessarily incurred in preparing for or
repairing the effects of natural disaster including the occurrence or threat of widespread
or severe damage, injury, or loss of life or property resulting from natural causes, in
accordance with standards formulated by the Emergency Services Division of the state
Department of Public Safety, as allowed by the commissioner of revenue under section
275.74, subdivision 2;
    (8) pay amounts required to correct an error in the levy certified to the county
auditor by a city or county in a levy year, but only to the extent that when added to the
preceding year's levy it is not in excess of an applicable statutory, special law or charter
limitation, or the limitation imposed on the governmental subdivision by sections 275.70
to 275.74 in the preceding levy year;
    (9) to pay an abatement under section 469.1815;
    (10) to pay any costs attributable to increases in the employer contribution rates
under chapter 353, or locally administered pension plans, that are effective after June
30, 2001;
    (11) to pay the operating or maintenance costs of a county jail as authorized in
section 641.01 or 641.262, or of a correctional facility as defined in section 241.021,
subdivision 1
, paragraph (f), to the extent that the county can demonstrate to the
commissioner of revenue that the amount has been included in the county budget as
a direct result of a rule, minimum requirement, minimum standard, or directive of the
Department of Corrections, or to pay the operating or maintenance costs of a regional jail
as authorized in section 641.262. For purposes of this clause, a district court order is
not a rule, minimum requirement, minimum standard, or directive of the Department of
Corrections. If the county utilizes this special levy, except to pay operating or maintenance
costs of a new regional jail facility under sections 641.262 to 641.264 which will not
replace an existing jail facility, any amount levied by the county in the previous levy year
for the purposes specified under this clause and included in the county's previous year's
levy limitation computed under section 275.71, shall be deducted from the levy limit
base under section 275.71, subdivision 2, when determining the county's current year
levy limitation. The county shall provide the necessary information to the commissioner
of revenue for making this determination;
    (12) to pay for operation of a lake improvement district, as authorized under section
103B.555. If the county utilizes this special levy, any amount levied by the county in the
previous levy year for the purposes specified under this clause and included in the county's
previous year's levy limitation computed under section 275.71 shall be deducted from
the levy limit base under section 275.71, subdivision 2, when determining the county's
current year levy limitation. The county shall provide the necessary information to the
commissioner of revenue for making this determination;
    (13) to repay a state or federal loan used to fund the direct or indirect required
spending by the local government due to a state or federal transportation project or other
state or federal capital project. This authority may only be used if the project is not a
local government initiative;
    (14) to pay for court administration costs as required under section 273.1398,
subdivision 4b
, less the (i) county's share of transferred fines and fees collected by the
district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
levied to pay for these costs in the year in which the court financing is transferred to the
state, the amount under this clause is limited to the amount of aid the county is certified to
receive under section 273.1398, subdivision 4a;
    (15) to fund a police or firefighters relief association as required under section 69.77
to the extent that the required amount exceeds the amount levied for this purpose in 2001;
    (16) for purposes of a storm sewer improvement district under section 444.20;
    (17) to pay for the maintenance and support of a city or county society for the
prevention of cruelty to animals under section 343.11, but not to exceed in any year
$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
recent federal census, whichever is greater. If the city or county uses this special levy, any
amount levied by the city or county in the previous levy year for the purposes specified
in this clause and included in the city's or county's previous year's levy limit computed
under section 275.71, must be deducted from the levy limit base under section 275.71,
subdivision 2
, in determining the city's or county's current year levy limit;
    (18) for counties, to pay for the increase in their share of health and human service
costs caused by reductions in federal health and human services grants effective after
September 30, 2007;
    (19) for a city, for the costs reasonably and necessarily incurred for securing,
maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
the commissioner of revenue under section 275.74, subdivision 2. A city must have either
(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
the city or in a zip code area of the city that is at least 50 percent higher than the average
foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
number of foreclosures, as indicated by sheriff sales records, divided by the number of
households in the city in 2007;
    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
to the Federal Highway Administration;
    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
personnel. If a local governmental unit did not use this special levy in the previous year its
levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
levied for the purposes specified in this clause in the previous year;
    (22) an amount equal to any reductions in the certified aids or credits payable
under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment under
section 16A.152 or reductions under another provision of law. The amount of the levy
allowed under this clause is equal to the amount unallotted or reduced in the calendar year
in which the tax is levied unless the unallotment or reduction amount is not known by
September 1 of the levy year, and the local government has not adjusted its levy under
section 275.065, subdivision 6, or 275.07, subdivision 6, in which case the unallotment
or reduction amount may be levied in the following year;
(23) to pay for the difference between one-half of the costs of confining sex offenders
undergoing the civil commitment process and any state payments for this purpose pursuant
to section 253B.185, subdivision 5;
(24) for a county to pay the costs of the first year of maintaining and operating a new
facility or new expansion, either of which contains courts, corrections, dispatch, criminal
investigation labs, or other public safety facilities and for which all or a portion of the
funding for the site acquisition, building design, site preparation, construction, and related
equipment was issued or authorized prior to the imposition of levy limits in 2008. The
levy limit base shall then be increased by an amount equal to the new facility's first full
year's operating costs as described in this clause; and
(25) for the estimated amount of reduction to credits market value credit
reimbursements under section 273.1384 for credits payable in the year in which the levy is
payable.
EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
thereafter.

    Sec. 4. Minnesota Statutes 2009 Supplement, section 477A.011, subdivision 36,
is amended to read:
    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision,
"city aid base" is zero.
    (b) The city aid base for any city with a population less than 500 is increased by
$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount
of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $40,000 for aids payable in calendar year 1995 only, provided that:
    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
    (ii) the city portion of the tax capacity rate exceeds 100 percent; and
    (iii) its city aid base is less than $60 per capita.
    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:
    (i) the city has a population in 1994 of 2,500 or more;
    (ii) the city is located in a county, outside of the metropolitan area, which contains a
city of the first class;
    (iii) the city's net tax capacity used in calculating its 1996 aid under section
477A.013 is less than $400 per capita; and
    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of
property located in the city is classified as railroad property.
    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:
    (i) the city was incorporated as a statutory city after December 1, 1993;
    (ii) its city aid base does not exceed $5,600; and
    (iii) the city had a population in 1996 of 5,000 or more.
    (e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and
thereafter, and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9
, paragraph (c), is also increased by $150,000 in calendar year 2000 only,
provided that:
    (1) the city has a population that is greater than 1,000 and less than 2,500;
    (2) its commercial and industrial percentage for aids payable in 1999 is greater
than 45 percent; and
    (3) the total market value of all commercial and industrial property in the city
for assessment year 1999 is at least 15 percent less than the total market value of all
commercial and industrial property in the city for assessment year 1998.
    (f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:
    (1) the city had a population in 1997 of 2,500 or more;
    (2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $650 per capita;
    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under
section 477A.013 is greater than 12 percent;
    (4) the 1999 local government aid of the city under section 477A.013 is less than
20 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent; and
    (5) the city aid base of the city used in calculating aid under section 477A.013
is less than $7 per capita.
    (g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:
    (1) the city has a population in 1997 of 2,000 or more;
    (2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $455 per capita;
    (3) the net levy of the city used in calculating 1999 aid under section 477A.013 is
greater than $195 per capita; and
    (4) the 1999 local government aid of the city under section 477A.013 is less than
38 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent.
    (h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:
    (1) the city has a population in 1998 that is greater than 200 but less than 500;
    (2) the city's revenue need used in calculating aids payable in 2000 was greater
than $200 per capita;
    (3) the city net tax capacity for the city used in calculating aids available in 2000
was equal to or less than $200 per capita;
    (4) the city aid base of the city used in calculating aid under section 477A.013
is less than $65 per capita; and
    (5) the city's formula aid for aids payable in 2000 was greater than zero.
    (i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:
    (1) the city had a population in 1998 that is greater than 200 but less than 500;
    (2) the city's commercial industrial percentage used in calculating aids payable in
2000 was less than ten percent;
    (3) more than 25 percent of the city's population was 60 years old or older according
to the 1990 census;
    (4) the city aid base of the city used in calculating aid under section 477A.013
is less than $15 per capita; and
    (5) the city's formula aid for aids payable in 2000 was greater than zero.
    (j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and
by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of
total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002
only, provided that:
    (1) the net tax capacity of the city used in calculating its 2000 aid under section
477A.013 is less than $810 per capita;
    (2) the population of the city declined more than two percent between 1988 and 1998;
    (3) the net levy of the city used in calculating 2000 aid under section 477A.013 is
greater than $240 per capita; and
    (4) the city received less than $36 per capita in aid under section 477A.013,
subdivision 9
, for aids payable in 2000.
    (k) The city aid base for a city with a population of 10,000 or more which is located
outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to
the lesser of:
    (1)(i) the total population of the city, as determined by the United States Bureau of
the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or
    (2) $2,500,000.
    (l) The city aid base is increased by $50,000 in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:
    (1) the city is located in the seven-county metropolitan area;
    (2) its population in 2000 is between 10,000 and 20,000; and
    (3) its commercial industrial percentage, as calculated for city aid payable in 2001,
was greater than 25 percent.
    (m) The city aid base for a city is increased by $150,000 in calendar years 2002 to
2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is
also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year
2009 only, provided that:
    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999;
    (2) its home county is located within the seven-county metropolitan area;
    (3) its pre-1940 housing percentage is less than 15 percent; and
    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900
per capita.
    (n) The city aid base for a city is increased by $200,000 beginning in calendar
year 2003 and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9
, paragraph (c), is also increased by $200,000 in calendar year 2003 only,
provided that the city qualified for an increase in homestead and agricultural credit aid
under Laws 1995, chapter 264, article 8, section 18.
    (o) The city aid base for a city is increased by $200,000 in 2004 only and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear
dry cask storage facility.
    (p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster
designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by
more than 40 percent between 1990 and 2000.
    (q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $25,000 in calendar year 2006 only if the city had a population in 2003 of at least 1,000
and has a state park for which the city provides rescue services and which comprised at
least 14 percent of the total geographic area included within the city boundaries in 2000.
    (r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and
the minimum and maximum amount of total aid it may receive under section 477A.013,
subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:
    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed
to be placed in trust status as tax-exempt Indian land;
    (2) the placement of the land is being challenged administratively or in court; and
    (3) due to the challenge, the land proposed to be placed in trust is still on the tax
rolls as of May 1, 2006.
    (s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and
the minimum and maximum total amount of aid it may receive under this section is also
increased in calendar year 2007 only, provided that:
    (1) the city has a 2004 estimated population greater than 200 but less than 2,000;
    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;
    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids
payable in 2006 was greater than 110 percent; and
    (4) it is located in a county where at least 15,000 acres of land are classified as
tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.
    (t) The city aid base for a city is increased by $30,000 in 2009 only, and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than
3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities
and one township in 2002.
    (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and
the maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for
aids payable in 2007 of less than $150 per capita and the city experienced flooding on
March 14, 2007, that resulted in evacuation of at least 40 homes.
    (v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $100,000 in calendar year 2009 only, if the city:
    (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical
area;
    (2) has a 2005 population greater than 7,000 but less than 8,000; and
    (3) has a 2005 net tax capacity per capita of less than $500.
    (w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
increased by $25,000 in calendar year 2009 only, provided that:
    (1) the city is located in the seven-county metropolitan area;
    (2) its population in 2006 is less than 200; and
    (3) the percentage of its housing stock built before 1940, according to the 2000
United States Census, is greater than 40 percent.
    (x) The city aid base is increased by $90,000 in calendar year 2009 only and the
minimum and maximum total amount of aid it may receive under section 477A.013,
subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the
city is located in the seven-county metropolitan area, has a 2006 population between 5,000
and 7,000 and has a 1997 population of over 7,000.
    (y) In calendar year 2010 only, the city aid base for a city is increased by $225,000 if
it was eligible for a $450,000 payment in calendar year 2008 under Minnesota Statutes
2006, section 477A.011, subdivision 36, paragraph (e), and the second half of the payment
under that paragraph in December 2008 was canceled due to the governor's unallotment.
The payment under this paragraph is not subject to any aid reductions under section
477A.0133 or any future unallotment of the city aid under section 16A.152.
(z) The city aid base and the maximum total aid the city may receive under section
477A.013, subdivision 9, is increased by $25,000 in calendar year 2010 only if:
(1) the city is a first class city in the seven-county metropolitan area with a
population below 300,000; and
(2) the city has made an equivalent grant to its local growers' association to
reimburse up to $1,000 each for membership fees and retail leases for members of the
association who farm in and around Dakota County and who incurred crop damage as a
result of the hail storm in that area on July 10, 2008.
The payment under this paragraph is not subject to any aid reductions under section
477A.0133 or any future unallotment of the city aid under section 16A.152.
(aa) The city aid base for a city is increased by $106,964 in 2011 only and the
minimum and maximum amount of total aid it may receive under section 477A.013,
subdivision 9, is also increased by $106,964 in calendar year 2011 only, if the city had a
population as defined in Minnesota Statutes, section 477A.011, subdivision 3, that was in
excess of 1,000 in 2007 and that was less than 1,000 in 2008.

    Sec. 5. Minnesota Statutes 2008, section 477A.013, subdivision 9, is amended to read:
    Subd. 9. City aid distribution. (a) In calendar year 2009 and thereafter, each
city shall receive an aid distribution equal to the sum of (1) the city formula aid under
subdivision 8, and (2) its city aid base.
    (b) For aids payable in 2009 2011 only, the total aid in the previous year for any city
shall not exceed the sum of (1) 35 percent of the city's net levy for the year prior to the
aid distribution, plus (2) its total aid in the previous year mean the amount of aid it was
certified to receive for aids payable in 2010 under this section minus the amount of its aid
reduction under section 477A.0134. For aids payable in 2012 and thereafter, the total aid
in the previous year for any city means the amount of aid it was certified to receive under
this section in the previous payable year.
    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
aid for any city with a population of 2,500 or more may not be less than its total aid under
this section in the previous year minus the lesser of $10 multiplied by its population, or ten
percent of its net levy in the year prior to the aid distribution.
    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population
less than 2,500 must not be less than the amount it was certified to receive in the
previous year minus the lesser of $10 multiplied by its population, or five percent of its
2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
population less than 2,500 must not be less than what it received under this section in the
previous year unless its total aid in calendar year 2008 was aid under section 477A.011,
subdivision 36, paragraph (s), in which case its minimum aid is zero.
    (e) A city's aid loss under this section may not exceed $300,000 in any year in
which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
greater than the appropriation under that subdivision in the previous year, unless the
city has an adjustment in its city net tax capacity under the process described in section
469.174, subdivision 28.
    (f) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.
EFFECTIVE DATE.This section is effective for aids payable in calendar year
2011 and thereafter.

    Sec. 6. [477A.0134] ADDITIONAL 2010 AID AND CREDIT REDUCTIONS.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them in this subdivision.
(b) The "2010 revenue base" for a county is the sum of the county's certified property
tax levy for taxes payable in 2010, plus the amount of county program aid under section
477A.0124 that the county was certified to receive in 2010, plus the amount of taconite
aids under sections 298.28 and 298.282 that the county was certified to receive in 2010
including any amounts required to be placed in a special fund for distribution in a later year.
(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of
the city's certified property tax levy for taxes payable in 2010, plus the amount of local
government aid under section 477A.013, subdivision 9, that the city was certified to
receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that
the city was certified to receive in 2010 including any amounts required to be placed in a
special fund for distribution in a later year.
    Subd. 2. 2010 reductions; counties and cities. The commissioner of revenue
must compute additional 2010 aid and credit reimbursement reduction amounts for each
county and city under this section, after implementing any reduction of county program
aid under section 477A.0124, local government aid under section 477A.013, or market
value credit reimbursements under section 273.1384, to reflect the reduction of allotments
under section 16A.152.
The additional reduction amounts under this section are limited to the sum of the
amount of county program aid under section 477A.0124, local government aid under
section 477A.013, and market value credit reimbursements under section 273.1384
payable to the county or city in 2010 before the reductions in this section, but after the
reductions for unallotments.
The reduction amount under this section is applied first to reduce the amount
payable to the county or city in 2010 as market value credit reimbursements under section
273.1384, and then if necessary, to reduce the amount payable as either county program
aid under section 477A.0124 in the case of a county, or local government aid under section
477A.013 in the case of a city.
No aid or reimbursement amount is reduced to less than zero under this section.
The additional 2010 aid reduction amount for a county is equal to 1.82767 percent
of the county's 2010 revenue base. The additional 2010 aid reduction amount for a city
is equal to the lesser of (1) 3.4287 percent of the city's 2010 revenue base or (2) $28
multiplied by the city's 2008 population.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2008, section 477A.03, subdivision 2a, is amended to read:
    Subd. 2a. Cities. For aids payable in 2009 2011 and thereafter, the total aid
paid under section 477A.013, subdivision 9, is $526,148,487, subject to adjustment in
subdivision 5 $527,100,646.
EFFECTIVE DATE.This section is effective for aids payable in 2011 and
thereafter.

    Sec. 8. Minnesota Statutes 2008, section 477A.03, subdivision 2b, is amended to read:
    Subd. 2b. Counties. (a) For aids payable in 2009 2011 and thereafter, the total aid
payable under section 477A.0124, subdivision 3, is $111,500,000 minus one-half of the
total aid amount determined under section 477A.0124, subdivision 5, paragraph (b),
subject to adjustment in subdivision 5 $96,395,000. Each calendar year, $500,000 shall be
retained by the commissioner of revenue to make reimbursements to the commissioner of
management and budget for payments made under section 611.27. For calendar year 2004,
the amount shall be in addition to the payments authorized under section 477A.0124,
subdivision 1
. For calendar year 2005 and subsequent years, the amount shall be deducted
from the appropriation under this paragraph. The reimbursements shall be to defray the
additional costs associated with court-ordered counsel under section 611.27. Any retained
amounts not used for reimbursement in a year shall be included in the next distribution
of county need aid that is certified to the county auditors for the purpose of property tax
reduction for the next taxes payable year.
    (b) For aids payable in 2009 2011 and thereafter, the total aid under section
477A.0124, subdivision 4, is $116,132,923 minus one-half of the total aid amount
determined under section 477A.0124, subdivision 5, paragraph (b), subject to adjustment
in subdivision 5 $101,309,575. The commissioner of management and budget shall
bill the commissioner of revenue for the cost of preparation of local impact notes as
required by section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter.
The commissioner of education shall bill the commissioner of revenue for the cost of
preparation of local impact notes for school districts as required by section 3.987, not
to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner of revenue
shall deduct the amounts billed under this paragraph from the appropriation under this
paragraph. The amounts deducted are appropriated to the commissioner of management
and budget and the commissioner of education for the preparation of local impact notes.
EFFECTIVE DATE.This section is effective for aids payable in 2011 and
thereafter.

    Sec. 9. Laws 2008, chapter 366, article 2, section 12, is amended to read:
    Sec. 12. STUDY OF AIDS TO LOCAL GOVERNMENTS.
    The chairs of the senate and house of representatives committees with jurisdiction
over taxes shall each appoint five members to a study group of the tax committees to
examine the current system of aids to local governments and make recommendations on
improvements to the system. Of the five members appointed by each chair, two must be
members of the tax committee, one of whom is a majority party member and one of
whom is a minority party member. The remaining members must represent local units of
government. The chairs of the divisions of the tax committees having jurisdiction over
property taxes shall also be members and shall serve as cochairs of the study group.
The study shall include, but not be limited to, consideration of existing disparities in
the distribution of local government aid, an analysis of current law need and capacity
factors as well as alternative need factors, alternative analytical methods for determining
correlations between factors and need, the formula used to calculate aid for small cities,
and volatility in the local government aid distribution. The group must report on its
specific recommendations to the legislature by December 15, 2010 2012.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. REPEALER.
(a) Minnesota Statutes 2008, section 477A.03, subdivision 5, is repealed.
(b) Laws 2009, chapter 88, article 12, section 21, is repealed.
EFFECTIVE DATE.Paragraph (a) is effective for aids payable in 2011 and
thereafter. Paragraph (b) is effective retroactively from July 1, 2009.
Presented to the governor March 29, 2010
Signed by the governor April 1, 2010, 10:25 a.m.

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