1.1 	A bill for an act
1.2 	relating to state government; appropriating money for jobs, economic 
1.3 	development, and housing; establishing and modifying certain programs; 
1.4 	providing for regulation of certain activities and practices; providing for 
1.5 	accounts, assessments, and fees; changing codes and licensing provisions; 
1.6 	providing penalties;amending Minnesota Statutes 2006, sections 115C.07, 
1.7 	subdivision 3; 116J.03, by adding a subdivision; 116J.656; 116J.66; 116J.68; 
1.8 	116L.02; 116L.04, by adding a subdivision; 446A.12, subdivision 1; 462A.21, 
1.9 	by adding a subdivision; 462A.22, subdivision 1; 609.531, subdivision 1; 
1.10 	Minnesota Statutes 2007 Supplement, sections 10A.01, subdivision 35; 80A.28, 
1.11 	subdivision 1; 116L.17, subdivision 1; 268.047, subdivision 2; 341.321; 
1.12 	446A.072, subdivisions 3, 5a; 446A.086; Laws 2007, chapter 135, article 1, 
1.13 	section 3, subdivision 2; proposing coding for new law in Minnesota Statutes, 
1.14 	chapters 116J; 116L; 446A; 462A; repealing Laws 2004, chapter 188, section 2.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	JOBS, ECONOMIC DEVELOPMENT, HOUSING AND MINNESOTA 
1.18 	HERITAGE APPROPRIATIONS SUMMARY

1.19 | Section 1.  SUMMARY OF APPROPRIATIONS.
1.20 	The amounts shown in this section summarize direct appropriations or reductions, 
1.21 	by fund, made in this act.

1.22 | | | 2008 | | 2009 | | Total
1.23 | General | $ | -0- | $ | 11,789,000 | $ | 11,789,000
1.24 | Oil Overcharge | | -0- | | 7,704,000 | | 7,704,000
1.25 | Cancellations | | -0- | | 6,358,000 | | 6,358,000
1.26 | Transfers From Other Funds | | -0- | | 14,000,000 | | 14,000,000
1.27 | Total | $ | -0- | $ | (865,000) | $ | (865,000)

2.1

2.2

Sec. 2. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS AND 
REDUCTIONS.

2.3 	The dollar amounts in the columns under "APPROPRIATIONS AND 
2.4 	REDUCTIONS" are added to or, if shown in parentheses, subtracted from the 
2.5 	appropriations in Laws 2007, chapter 135, or other law to the specified agencies. The 
2.6 	appropriations are from the general fund, or another named fund, and are available for the 
2.7 	fiscal years indicated for each purpose.  The figures "2008" and "2009" used in this act 
2.8 	mean that the appropriations listed under them are available for the fiscal year ending June 
2.9 	30, 2008, or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second 
2.10 	year" is fiscal year 2009. "The biennium" is fiscal years 2008 and 2009.  Appropriations 
2.11 	for the fiscal year ending June 30, 2008, are effective the day following final enactment.

2.12

2.13

APPROPRIATIONS AND 
REDUCTIONS

2.14 | | | | Available for the Year
2.15 | | | | Ending June 30
2.16 | | | | | 2008 | | 2009

2.17 | Sec. 3. COMMERCE | | | |

2.18 | Subdivision 1.Total Appropriation | $ | -0- | $ | 7,658,000

2.19 | Appropriations by Fund
2.20 | | 2008 | 2009
2.21 | General | -0- | (46,000)
2.22 | Oil Overcharge | -0- | 7,704,000
2.23 | Cancellations | -0- | 2,600,000
2.24

2.25

Transfers From 
Other Funds

-0-

2,000,000

2.26 | Subd. 2.Administration | | -0- | | (46,000)
2.27 	This is a base reduction to the administration 
2.28 	and Office of Energy Security programs.

2.29 | Subd. 3.Energy and Telecommunications | | -0- | | 7,704,000

2.30 | Appropriations by Fund
2.31 | Oil Overcharge | -0- | 7,704,000
2.32 	The petroleum violation escrow funds 
2.33 	appropriated to the commissioner by 
2.34 	Laws 1988, chapter 686, article 1, section 
2.35 	38, for state energy loan programs for 
2.36 	schools, hospitals, and public buildings, and 
3.1 	reappropriated under Laws 2007, chapter 57, 
3.2 	article 2, section 30, are appropriated to the 
3.3 	commissioner for the purposes of building 
3.4 	efficiency and energy conservation, and are 
3.5 	available until spent,

3.6 | Subd. 4.Cancellations | | | |
3.7 	Prior to July 31, 2008, $2,600,000 from the 
3.8 	unexpended balance from the appropriation 
3.9 	made in Laws 2007, chapter 57, article 
3.10 	2, section 3, subdivision 6, for renewable 
3.11 	hydrogen initiative grants is canceled to the 
3.12 	general fund.

3.13 | Subd. 5.Transfer | | | |
3.14 	Prior to July 31, 2008, $2,000,000 from the 
3.15 	unexpended balance of the insurance fraud 
3.16 	prevention account in the market assurance 
3.17 	program shall be transferred to the general 
3.18 	fund.

3.19 | Sec. 4. PUBLIC UTILITIES COMMISSION | | | |
3.20 	Prior to July 31, 2008, $4,000,000 from the 
3.21 	unexpended balance of the telephone Access 
3.22 	Minnesota account in the special revenue 
3.23 	fund shall be transferred to the general fund.

3.24

3.25

Sec. 5. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

3.26 | Subdivision 1.Total Appropriation | $ | -0- | $ | 10,620,000

3.27 | Appropriations by Fund
3.28 | | 2008 | 2009
3.29 | General | -0- | 10,620,000
3.30 | Cancellations | -0- | 1,758,000
3.31

3.32

Transfers From 
Other Funds

-0-

10,000,000

4.1 	The amounts that may be spent for each 
4.2 	purpose are specified in the following 
4.3 	subdivisions.

4.4

4.5

Subd. 2.Business and Community 
Development

-0-

10,900,000

4.6 | Appropriations by Fund
4.7 | General | -0- | 10,900,000
4.8 	$550,000 in the second year is for expansion 
4.9 	of the services provided to small businesses 
4.10 	by the small business development centers 
4.11 	established under Minnesota Statutes, section 
4.12 	116J.66 and is available until expended. 
4.13 	$500,000 of this appropriation is added to 
4.14 	the department's budget base and is available 
4.15 	until expended.
4.16 	$600,000 in the second year is for 
4.17 	development of a network to support 
4.18 	increased entrepreneurial opportunities 
4.19 	including, but not limited to, readiness 
4.20 	assessment and services for potential rural 
4.21 	entrepreneurs through Minnesota's workforce 
4.22 	center system, programs linking aspiring 
4.23 	entrepreneurs with qualified mentors, and 
4.24 	electronic and other communications means 
4.25 	to certify and bring available services to 
4.26 	potential entrepreneurs. This appropriation 
4.27 	is available until expended. Of this amount, 
4.28 	$400,000 is added to the department's budget 
4.29 	base and is available until expended.
4.30 	$400,000 in the second year is for 
4.31 	operation of the Office of Technology 
4.32 	and Commercialization established under 
4.33 	Minnesota Statutes, section 116J.656. This 
4.34 	appropriation is added to the department's 
4.35 	budget base and is available until expended.
5.1 	$350,000 in the second year is for grants 
5.2 	to organizations initiating or continuing 
5.3 	programs to assist rural small manufacturing 
5.4 	businesses in implementing technology and 
5.5 	business improvements that increase the 
5.6 	competitiveness of those businesses. The 
5.7 	application process will reference similar 
5.8 	measures as the growth acceleration program 
5.9 	and be established by the commissioner. The 
5.10 	grants are open to all qualified organizations 
5.11 	as defined by the commissioner through 
5.12 	solicitation. This is a onetime appropriation 
5.13 	and is available until expended.
5.14 	$100,000 in the second year is for the 
5.15 	Minnesota Trade Office to increase export 
5.16 	services in greater Minnesota. This is a 
5.17 	onetime appropriation and is available until 
5.18 	expended.
5.19 	$1,500,000 in the second year is for the 
5.20 	Minnesota rural enterprise microloan 
5.21 	program established under Minnesota 
5.22 	Statutes, section 116J.432. This is a onetime 
5.23 	appropriation and is available until expended.
5.24 	$2,000,000 in the second year is for grants to 
5.25 	the six regional initiative fund foundations 
5.26 	established under Minnesota Statutes, section 
5.27 	116J.415, as regional organizations, to 
5.28 	expand their ability to provide loans to small 
5.29 	businesses. The grants must be matched 
5.30 	by new private funds. This is a onetime 
5.31 	appropriation and is available until expended.
5.32 	$500,000 in the second year is for small 
5.33 	business development program grants under 
5.34 	Minnesota Statutes, section 116J.8749. This 
6.1 	appropriation is added to the department's 
6.2 	budget base and is available until expended.
6.3 	$2,000,000 in the second year is for the 
6.4 	Minnesota investment fund under Minnesota 
6.5 	Statutes, section 116J.8731. Awards made 
6.6 	under this appropriation may include 
6.7 	businesses that increase productivity, 
6.8 	increase research and product development, 
6.9 	and modernize technology. Priority shall 
6.10 	be given to targeted rural opportunity 
6.11 	communities as defined in Minnesota 
6.12 	Statutes, section 116J.03, subdivision 4. This 
6.13 	is a onetime appropriation and is available 
6.14 	until expended.
6.15 	$500,000 in the second year is for the 
6.16 	community leadership and planning program 
6.17 	as defined in Minnesota Statutes, section 
6.18 	116J.9825, and is available until expended. 
6.19 	Of this amount, $400,000 is added to the 
6.20 	department's budget base and is available 
6.21 	until expended.
6.22 	$2,000,000 in the second year is for the Main 
6.23 	Street revitalization grant program as defined 
6.24 	in Minnesota Statutes, section 116J.9805, 
6.25 	to increase business creation, to promote 
6.26 	business retention, or for general economic 
6.27 	vitality improvements. This appropriation 
6.28 	is available until expended. Of this amount, 
6.29 	$800,000 is added to the department's base 
6.30 	budget and is available until expended.
6.31 	$150,000 in the second year is to develop and 
6.32 	implement a new Web-based community and 
6.33 	property profile system. This appropriation 
6.34 	is available until expended.
7.1 	$100,000 in the second year is for 
7.2 	expenses associated with marketing the 
7.3 	state of Minnesota to attract new business 
7.4 	development opportunities. These funds 
7.5 	must be used to attract industries in which the 
7.6 	commissioner determines that Minnesota has 
7.7 	a current or potential competitive advantage, 
7.8 	including renewable energy and other 
7.9 	industries with strengths and opportunities 
7.10 	to grow additional businesses and jobs. 
7.11 	State funds awarded to the department 
7.12 	must be matched by nonstate sources. The 
7.13 	appropriation is available until expended.
7.14 	$150,000 in the second year is for business 
7.15 	surveys to determine benefit and vacancy 
7.16 	levels on an occupational and regional basis, 
7.17 	and to improve accessibility of economic 
7.18 	and labor market information data collected 
7.19 	by the Department of Employment and 
7.20 	Economic Development through the Internet. 
7.21 	This is a onetime appropriation and is 
7.22 	available until expended.

7.23 | Subd. 3.Workforce Development | | -0- | | (280,000)

7.24 | Appropriations by Fund
7.25 | General | -0- | (280,000)
7.26 	$280,000 in the second year is a base 
7.27 	reduction to the extended employment grants 
7.28 	program. Of this amount, $125,000 is from 
7.29 	supplemental funds paid for wage incentives 
7.30 	for the community support fund established 
7.31 	in Minnesota Rules, part 3300.2045.

7.32 | Subd. 4.Cancellations | $ | -0- | $ | 1,758,000
7.33 	Prior to July 31, 2008, the unexpended 
7.34 	balances from the following appropriations 
7.35 	are canceled to the general fund:
8.1 	(1) the appropriation made in Laws 2005, 
8.2 	First Special Session chapter 3, article 
8.3 	10, section 23, to the foreign trade zone 
8.4 	authority; and
8.5 	(2) the appropriation made in Laws 
8.6 	2005, First Special Session chapter 1, 
8.7 	article 3, section 2, subdivision 2, for 
8.8 	the methamphetamine laboratory cleanup 
8.9 	revolving loan fund.
8.10 	Prior to July 31, 2008, of the unexpended 
8.11 	balance in the job skills partnership account, 
8.12 	$1,000,000 is canceled to the general fund.

8.13 | Subd. 5.Transfers | $ | -0- | $ | 10,000,000
8.14 	Prior to July 31, 2008, the specified amounts 
8.15 	from the unexpended balance of the named 
8.16 	funds shall be transferred to the general fund:
8.17 	(1) $8,000,000 from the workforce 
8.18 	development fund; and 
8.19 	(2) $2,000,000 from the 21st century 
8.20 	minerals fund.

8.21 | Sec. 6. EXPLORE MINNESOTA TOURISM | $ | -0- | $ | 500,000
8.22 	$500,000 in the second year is from the 
8.23 	special marketing account established 
8.24 	pursuant to Laws 2005, First Special Session 
8.25 	chapter 1, article 3, section 6, for a onetime 
8.26 	grant to the Minnesota Film and TV Board 
8.27 	for the filming of a movie in Minnesota in 
8.28 	2008 and 2009. The grant is in addition to 
8.29 	any payments made for the same purpose 
8.30 	from the film production jobs program under 
8.31 	Minnesota Statutes, section 116U.26. This 
8.32 	appropriation is available until expended.

8.33 | Sec. 7. LABOR AND INDUSTRY | $ | -0- | $ | (41,000)
9.1 	$41,000 in the second year is a base reduction 
9.2 	to the municipal building permit reporting 
9.3 	unit in the labor standards program.

9.4

9.5

Sec. 8. BUREAU OF MEDIATION 
SERVICES

$

-0-

$

(69,000)

9.6 	This is a base reduction.

9.7

9.8

Sec. 9. MINNESOTA HISTORICAL 
SOCIETY

$

-0-

$

825,000

9.9 	$825,000 in the second year is a 
9.10 	onetime appropriation for the Minnesota 
9.11 	Sesquicentennial Commission. The 
9.12 	Minnesota Historical Society, the State Arts 
9.13 	Board, and Explore Minnesota Tourism 
9.14 	may assist the commission in designing 
9.15 	and implementing the grants program. 
9.16 	The commission shall encourage private 
9.17 	contributions to match the state funds to the 
9.18 	greatest extent possible. Any gifts, pledges, 
9.19 	membership fees, or contributions received 
9.20 	by the commission are appropriated to the 
9.21 	commission.

9.22

9.23

Sec. 10. COMBATIVE SPORTS 
COMMISSION

$

-0-

$

80,000

9.24 	This amount is added to the commission's 
9.25 	base budget.

9.26 	ARTICLE 2
9.27 	GENERAL

9.28 	Section 1. Minnesota Statutes 2007 Supplement, section 10A.01, subdivision 35, 
9.29 	is amended to read:
9.30 		Subd. 35.Public official. "Public official" means any:
9.31 	(1) member of the legislature;
10.1 	(2) individual employed by the legislature as secretary of the senate, legislative 
10.2 	auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or 
10.3 	attorney in the Office of Senate Counsel and Research or House Research;
10.4 	(3) constitutional officer in the executive branch and the officer's chief administrative 
10.5 	deputy;
10.6 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
10.7 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
10.8 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
10.9 	officer;
10.10 	(6) member, chief administrative officer, or deputy chief administrative officer of a 
10.11 	state board or commission that has either the power to adopt, amend, or repeal rules under 
10.12 	chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
10.13 	(7) individual employed in the executive branch who is authorized to adopt, amend, 
10.14 	or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
10.15 	(8) executive director of the State Board of Investment;
10.16 	(9) deputy of any official listed in clauses (7) and (8);
10.17 	(10) judge of the Workers' Compensation Court of Appeals;
10.18 	(11) administrative law judge or compensation judge in the State Office of 
10.19 	Administrative Hearings or referee in the Department of Employment and Economic 
10.20 	Development;
10.21 	(12) member, regional administrator, division director, general counsel, or operations 
10.22 	manager of the Metropolitan Council;
10.23 	(13) member or chief administrator of a metropolitan agency;
10.24 	(14) director of the Division of Alcohol and Gambling Enforcement in the 
10.25 	Department of Public Safety;
10.26 	(15) member or executive director of the Higher Education Facilities Authority;
10.27 	(16) member of the board of directors or president of Minnesota Technology, Inc.;
10.28 	(17) member of the board of directors or executive director of the Minnesota State 
10.29 	High School League;
10.30 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
10.31 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
10.32 	(20) manager of a watershed district, or member of a watershed management 
10.33 	organization as defined under section 103B.205, subdivision 13; ~~or~~
10.34 	(21) supervisor of a soil and water conservation district; or
10.35 	(22) director of Explore Minnesota Tourism.

11.1 	Sec. 2. Minnesota Statutes 2007 Supplement, section 80A.28, subdivision 1, is 
11.2 	amended to read:
11.3 		Subdivision 1.Registration or notice filing fee. (a) There shall be a filing fee of 
11.4 	$100 for every application for registration or notice filing. There shall be an additional fee 
11.5 	of one-tenth of one percent of the maximum aggregate offering price at which the securities 
11.6 	are to be offered in this state, and the maximum combined fees shall not exceed $300.
11.7 	(b) When an application for registration is withdrawn before the effective date or a 
11.8 	preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100 
11.9 	filing fee shall be returned. If an application to register securities is denied, the total of all 
11.10 	fees received shall be retained. 
11.11 	(c) Where a filing is made in connection with a federal covered security under 
11.12 	section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 
11.13 	If the filing is made in connection with redeemable securities issued by an open end 
11.14 	management company or unit investment trust, as defined in the Investment Company Act 
11.15 	of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 
11.16 	offering price at which the securities are to be offered in this state during the notice filing 
11.17 	period. The fee must be paid at the time of the initial filing and thereafter in connection 
11.18 	with each renewal no later than July 1 of each year and must be sufficient to cover the 
11.19 	shares the issuer expects to sell in this state over the next 12 months. If during a current 
11.20 	notice filing the issuer determines it is likely to sell shares in excess of the shares for 
11.21 	which fees have been paid to the commissioner, the issuer shall submit an amended notice 
11.22 	filing to the commissioner under section 80A.122, subdivision 1, clause (3), together with 
11.23 	a fee of 1/20 of one percent of the maximum aggregate offering price of the additional 
11.24 	shares. Shares for which a fee has been paid, but which have not been sold at the time 
11.25 	of expiration of the notice filing, may not be sold unless an additional fee to cover the 
11.26 	shares has been paid to the commissioner as provided in this section and section 80A.122, 
11.27 	subdivision 4a. If the filing is made in connection with redeemable securities issued by 
11.28 	such a company or trust, there is no maximum fee for securities filings made according to 
11.29 	this paragraph. If the filing is made in connection with any other federal covered security 
11.30 	under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth 
11.31 	of one percent of the maximum aggregate offering price at which the securities are to be 
11.32 	offered in this state, and the combined fees shall not exceed $300. Beginning with fiscal 
11.33 	year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year, 
11.34 	the commissioner shall determine the total amount of all fees that were collected under 
11.35 	this paragraph in connection with any filings made for that fiscal year for securities of an 
11.36 	open-end investment company on behalf of a security that is a federal covered security 
12.1 	pursuant to section 18(b)(2) of the Securities Act of 1933. ~~To the extent the total fees~~ 
12.2 	~~collected by the commissioner in connection with these filings exceed $25,600,000 in a~~ 
12.3 	~~fiscal year, the commissioner shall refund, on a pro rata basis, to all persons who paid any~~ 
12.4 	~~fees for that fiscal year, the amount of fees collected by the commissioner in excess of~~ 
12.5 	~~$25,600,000.~~ No individual refund is required of amounts of $100 or less for a fiscal year. 

12.6 	Sec. 3. Minnesota Statutes 2006, section 115C.07, subdivision 3, is amended to read:
12.7 		Subd. 3.Rules. (a) The board shall adopt rules regarding its practices and 
12.8 	procedures, the form and procedure for applications for compensation from the fund, 
12.9 	procedures for investigation of claims and specifying the costs that are eligible for 
12.10 	reimbursement from the fund.
12.11 	(b) The board may adopt rules requiring certification of environmental consultants.
12.12 	(c) The board may adopt other rules necessary to implement this chapter.
12.13 	(d) The board may use section 14.389 to adopt rules specifying the competitive 
12.14 	bidding requirements for consultant services proposals.
12.15 	(e) The board may use section 14.389 to adopt rules specifying the written proposal 
12.16 	and invoice requirements for consultant services.
12.17 	(f) Upon written notification from the board of the adjusted dollar amounts 
12.18 	determined pursuant to Minnesota Rules, parts 2890.1900, item D, and 2890.3900, item D, 
12.19 	the revisor of statutes must adjust the dollar amounts in Minnesota Rules, parts 2890.1300 
12.20 	to 2890.1600, 2890.2600, 2890.2800 to 2890.3100, and 2890.3300 to 2890.3800, to reflect 
12.21 	the adjustments announced and published by the board.

12.22 	EFFECTIVE DATE. This section is effective for changes announced in 2006 
12.23 	and thereafter.

12.24 	Sec. 4. Minnesota Statutes 2006, section 116L.04, is amended by adding a subdivision 
12.25 	to read:
12.26 		Subd. 1b.Rural workforce innovation grants. The partnership program may 
12.27 	provide up to $1,000,000 in grants each fiscal year for the rural workforce innovation 
12.28 	program under section 116L.175.

12.29 	Sec. 5. Minnesota Statutes 2007 Supplement, section 341.321, is amended to read:
12.30 	341.321 FEE SCHEDULE.
12.31 	(a) The fee schedule for professional licenses issued by the ~~Minnesota Boxing~~
12.32 	commission is as follows: 
13.1 	(1) referees, ~~$45~~ $25 for each initial license and each renewal; 
13.2 	(2) promoters, $400 for each initial license and each renewal; 
13.3 	(3) judges and knockdown judges, ~~$45~~ $25 for each initial license and each renewal; 
13.4 	(4) trainers, ~~$45~~ $25 for each initial license and each renewal; 
13.5 	(5) ring announcers, ~~$45~~ $25 for each initial license and each renewal; 
13.6 	(6) ~~boxers'~~ seconds, ~~$45~~ $25 for each initial license and each renewal; 
13.7 	(7) timekeepers, ~~$45~~ $25 for each initial license and each renewal; 
13.8 	(8) ~~boxers~~ combatant, ~~$45~~ $25 for each initial license and each renewal;
13.9 	(9) managers, ~~$45~~ $25 for each initial license and each renewal; and
13.10 	(10) ringside physicians, ~~$45~~ $25 for each initial license and each renewal.
13.11 	In addition to the license fee and the late filing penalty fee in section 341.32, subdivision 
13.12 	2, if applicable, an individual who applies for a combatant license on the same day the 
13.13 	combative sporting event is held shall pay a fee of $100 at the time the application is 
13.14 	submitted.
13.15 	(b) The fee schedule for amateur licenses issued by the commission is as follows:
13.16 	(1) referees, $10 for each initial license and each renewal;
13.17 	(2) promoters, $100 for each initial license and each renewal;
13.18 	(3) judges and knockdown judges, $10 for each initial license and each renewal;
13.19 	(4) trainers, $10 for each initial license and each renewal;
13.20 	(5) ring announcers, $10 for each initial license and each renewal;
13.21 	(6) seconds, $10 for each initial license and each renewal;
13.22 	(7) timekeepers, $10 for each initial license and each renewal;
13.23 	(8) combatant, $10 for each initial license and each renewal;
13.24 	(9) managers, $10 for each initial license and each renewal; and
13.25 	(10) ringside physicians, $10 for each initial license and each renewal.
13.26 	~~(b)~~ (c) The commission shall establish ~~and assess an event~~ a contest fee for each 
13.27 	~~sporting event~~ combative sport contest. The ~~event~~ contest fee is ~~set at a minimum of~~
13.28 	$1,500 per event or ~~a percentage~~ not more than four percent of the gross ticket sales 
13.29 	as determined by the commission when the ~~sporting event~~ combative sport contest is 
13.30 	scheduled, except that the amateur combative sport contest fee shall be $150. The 
13.31 	commission shall consider the size and type of venue when establishing a contest fee. The 
13.32 	commission may establish the maximum number of complimentary tickets allowed for 
13.33 	each event by rule. An amateur combative sport contest fee is nonrefundable.
13.34 	~~(c)~~ (d) All fees collected by the ~~Minnesota Boxing~~ commission must be deposited in 
13.35 	the ~~Boxing~~ commission account in the special revenue fund. 

14.1 	Sec. 6. [462A.36] NONPROFIT HOUSING BONDS; AUTHORIZATION; 
14.2 	STANDING APPROPRIATION.
14.3 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
14.4 	the meanings given them in this subdivision:
14.5 	(1) "debt service" means the amount payable in any fiscal year of principal of, 
14.6 	premium, in any, and interest on nonprofit housing bonds and the fees, charges, and 
14.7 	expenses related to the bonds;
14.8 	(2) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended; 
14.9 	and
14.10 	(3) "nonprofit housing bonds" means bonds issued by the agency under chapter 
14.11 	462A that are "qualified 501(c)(3) bonds" within the meaning of section 145(a) of the 
14.12 	Internal Revenue Code or are not "private activity bonds" within the meaning of section 
14.13 	141(a) of the Internal Revenue Code, for the purpose of financing or refinancing affordable 
14.14 	housing authorized under chapter 462A.
14.15 		Subd. 2.Appropriation of debt service; payment to agency or trustee. (a) Up to 
14.16 	$2,400,000 annually is appropriated from the general fund for deposit in the nonprofit 
14.17 	housing bond account established in section 462A.21, subdivision 32, to pay the debt 
14.18 	service on nonprofit housing bonds. The appropriation of up to $2,400,000 per year may be 
14.19 	made for no more than 20 years, commencing with the fiscal year beginning July 1, 2009.
14.20 	(b) On July 1 of each year, but no earlier than July 1, 2009, and for so long as any 
14.21 	nonprofit housing bonds are outstanding, the state must transfer from the general fund 
14.22 	to the nonprofit housing bond account established under section 462A.21, subdivision 
14.23 	32, the amount of debt service payable in the fiscal year certified by the agency to the 
14.24 	commissioner of finance, not to exceed $2,400,000 annually.
14.25 	(c) The agency may pledge to the payment of the nonprofit housing bonds the 
14.26 	payments to be made by the state pursuant to this section.
14.27 		Subd. 3.No full faith and credit. The nonprofit housing bonds are not public debt 
14.28 	of the state, and the full faith and credit and taxing powers of the state are not pledged 
14.29 	to the payment of the nonprofit housing bonds or to any payment that the state agrees to 
14.30 	make under this section. The bonds must contain a conspicuous statement to such effect.
14.31 		Subd. 4.Authorization. The agency may issue up to $30,000,000 of nonprofit 
14.32 	housing bonds in one or more series to which the payments made pursuant to this section 
14.33 	may be pledged. The nonprofit housing bonds authorized in this subdivision may be issued 
14.34 	for the purpose of making loans, on terms and conditions the agency deems appropriate, 
14.35 	to finance the costs of the construction, acquisition, preservation, and rehabilitation of 
14.36 	permanent supportive housing for individuals and families who: (1) either have been 
15.1 	without a permanent residence for at least 12 months or at least four times in the last three 
15.2 	years; or (2) are at significant risk of lacking a permanent residence for 12 months or at 
15.3 	least four times in the last three years. An insubstantial portion of the bond proceeds 
15.4 	may be used for permanent supportive housing for individuals and families experiencing 
15.5 	homelessness who do not meet the criteria of the previous sentence. For purposes of this 
15.6 	subdivision, "permanent supportive housing" means housing that is not time-limited and 
15.7 	provides or coordinates with linkages to services necessary for residents to maintain 
15.8 	housing stability and maximize opportunities for education and employment.

15.9 	Sec. 7. Minnesota Statutes 2006, section 462A.21, is amended by adding a subdivision 
15.10 	to read:
15.11 		Subd. 32.Nonprofit housing bonds account. It may establish a nonprofit housing 
15.12 	bond account as a separate account within the housing development fund. Proceeds of 
15.13 	nonprofit housing bonds and payments made by the state pursuant to section 462A.36 
15.14 	may be deposited in the account. The agency may transfer the proceeds of nonprofit 
15.15 	housing bonds to another account within the housing development fund that it determines 
15.16 	appropriate to accomplish the purposes for which the bonds are authorized under section 
15.17 	462A.36.

15.18 	Sec. 8. Minnesota Statutes 2006, section 462A.22, subdivision 1, is amended to read:
15.19 		Subdivision 1.Debt ceiling. The aggregate principal amount of bonds and notes 
15.20 	which are outstanding at any time, excluding the principal amount of any bonds and 
15.21 	notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
15.22 	~~$3,000,000,000~~ $5,000,000,000.

15.23 	Sec. 9. Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:
15.24 		Subdivision 1.Definitions. For the purpose of sections 609.531 to 609.5318, the 
15.25 	following terms have the meanings given them.
15.26 	(a) "Conveyance device" means a device used for transportation and includes, but 
15.27 	is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any 
15.28 	equipment attached to it. The term "conveyance device" does not include property which 
15.29 	is, in fact, itself stolen or taken in violation of the law.
15.30 	(b) "Weapon used" means a dangerous weapon as defined under section 609.02, 
15.31 	subdivision 6, that the actor used or had in possession in furtherance of a crime.
15.32 	(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).
15.33 	(d) "Contraband" means property which is illegal to possess under Minnesota law.
16.1 	(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the 
16.2 	Department of Commerce Division of Insurance Fraud Prevention, the Minnesota Division 
16.3 	of Driver and Vehicle Services, the Minnesota State Patrol, a county sheriff's department, 
16.4 	the Three Rivers Park District park rangers, the Department of Natural Resources Division 
16.5 	of Enforcement, the University of Minnesota Police Department, the Department of 
16.6 	Corrections' Fugitive Apprehension Unit, or a city or airport police department.
16.7 	(f) "Designated offense" includes:
16.8 	(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;
16.9 	(2) for driver's license or identification card transactions: any violation of section 
16.10 	171.22; and
16.11 	(3) for all other purposes: a felony violation of, or a felony-level attempt or 
16.12 	conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21; 
16.13 	609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282; 
16.14 	609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, 
16.15 	clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, 
16.16 	subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 
16.17 	609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561; 
16.18 	609.562; 609.563; 609.582; 609.59; 609.595; 609.611; 609.631; 609.66, subdivision 1e; 
16.19 	609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 
16.20 	609.89; 609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation 
16.21 	of section 609.891 or 624.7181; or any violation of section 609.324.
16.22 	(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

16.23 	Sec. 10. Laws 2007, chapter 135, article 1, section 3, subdivision 2, is amended to read:

16.24

16.25

Subd. 2. Business and Community 
Development

40,667,000

8,639,000

16.26 | Appropriations by Fund
16.27 | General | 39,967,000 | 7,939,000
16.28 | Remediation | 700,000 | 700,000
16.29 	(a) (1) $250,000 the first year and $250,000 
16.30 	the second year are from the general fund 
16.31 	for a grant under Minnesota Statutes, 
16.32 	section 116J.421, to the Rural Policy and 
16.33 	Development Center at St. Peter, Minnesota. 
16.34 	The grant shall be used for research and 
16.35 	policy analysis on emerging economic and 
17.1 	social issues in rural Minnesota, to serve as 
17.2 	a policy resource center for rural Minnesota 
17.3 	communities, to encourage collaboration 
17.4 	across higher education institutions to 
17.5 	provide interdisciplinary team approaches 
17.6 	to research and problem-solving in rural 
17.7 	communities, and to administer overall 
17.8 	operations of the center. 
17.9 	(2) The grant shall be provided upon the 
17.10 	condition that each state-appropriated 
17.11 	dollar be matched with a nonstate dollar. 
17.12 	Acceptable matching funds are nonstate 
17.13 	contributions that the center has received and 
17.14 	have not been used to match previous state 
17.15 	grants. Any unencumbered balance in the 
17.16 	first year is available for the second year. 
17.17 	(b) $250,000 the first year and $250,000 
17.18 	the second year are from the general fund 
17.19 	for a grant to WomenVenture for women's 
17.20 	business development programs. 
17.21 	(c) $250,000 the first year is for a grant to 
17.22 	University Enterprise Laboratories (UEL) 
17.23 	for its direct and indirect expenses to support 
17.24 	efforts to encourage the growth of early-stage 
17.25 	and emerging bioscience companies. UEL 
17.26 	must provide a report by June 30 each year 
17.27 	to the commissioner on the expenditures 
17.28 	until the appropriation is expended. This is a 
17.29 	onetime appropriation and is available until 
17.30 	expended. 
17.31 	(d) $2,000,000 the first year is for grants 
17.32 	under Minnesota Statutes, section 116J.571, 
17.33 	for the redevelopment grant program. This is 
17.34 	a onetime appropriation. 
18.1 	(e) $100,000 the first year and $100,000 the 
18.2 	second year are to help small businesses 
18.3 	access federal funds through the federal 
18.4 	Small Business Innovation Research Program 
18.5 	and the federal Small Business Technology 
18.6 	Transfer Program. Department services 
18.7 	must include maintaining connections to 
18.8 	11 federal programs, assessment of specific 
18.9 	funding opportunities, review of funding 
18.10 	proposals, referral to specific consulting 
18.11 	services, and training workshops throughout 
18.12 	the state. Unless prohibited by federal law, 
18.13 	the department must implement fees for 
18.14 	services that help companies seek federal 
18.15 	Phase II Small Business Innovation Research 
18.16 	grants. The recommended fee schedule 
18.17 	must be reported to the chairs of the house 
18.18 	of representatives finance committee and 
18.19 	senate budget division with jurisdiction over 
18.20 	economic development by February 1, 2008. 
18.21 	(f) $100,000 the first year and $100,000 
18.22 	the second year are appropriated to the 
18.23 	Public Facilities Authority for the small 
18.24 	community wastewater treatment program 
18.25 	under Minnesota Statutes, chapter 446A. 
18.26 	(g) $255,000 the first year and $155,000 
18.27 	the second year are from the general fund 
18.28 	for a grant to the Metropolitan Economic 
18.29 	Development Association for continuing 
18.30 	minority business development programs in 
18.31 	the metropolitan area. 
18.32 	(h) $85,000 the first year and $85,000 the 
18.33 	second year are for grants to the Minnesota 
18.34 	Inventors Congress. Of this amount, $10,000 
19.1 	each year is for the Student Inventors 
19.2 	Congress. 
19.3 	(i) $151,000 the first year is for a onetime 
19.4 	grant to the city of Faribault to design, 
19.5 	construct, furnish, and equip renovations to 
19.6 	accommodate handicapped accessibility at 
19.7 	the Paradise Center for the Arts. 
19.8 	(j) $750,000 the first year is to Minnesota 
19.9 	Technology, Inc. for the small business 
19.10 	growth acceleration program established 
19.11 	under Minnesota Statutes, section 116O.115. 
19.12 	This is a onetime appropriation. 
19.13 	(k) $300,000 the first year is for a onetime 
19.14 	grant to the city of Northome for the 
19.15 	construction of a new municipal building to 
19.16 	replace the structures damaged by fire on 
19.17 	July 22, 2006. This appropriation is available 
19.18 	when the commissioner determines that a 
19.19 	sufficient match is available from nonstate 
19.20 	sources to complete the project. 
19.21 	(l) $300,000 the first year is for a grant to the 
19.22 	city of Worthington for an agricultural-based 
19.23 	bioscience training and testing center. Funds 
19.24 	appropriated under this section must be used 
19.25 	to provide a training and testing facility for 
19.26 	incubator firms developing new agricultural 
19.27 	processes and products. This is a onetime 
19.28 	appropriation and is available until expended. 
19.29 	(m) $1,750,000 the first year is for a onetime 
19.30 	grant to BioBusiness Alliance of Minnesota 
19.31 	for bioscience business development 
19.32 	programs to promote and position the state 
19.33 	as a global leader in bioscience business 
19.34 	activities. These funds may be used for: 
20.1 	(1) completion and periodic updating of 
20.2 	a statewide bioscience business industry 
20.3 	assessment of business technology 
20.4 	enterprises and Minnesota's competitive 
20.5 	position employing annual updates to federal 
20.6 	industry classification data; 
20.7 	(2) long-term strategic planning that includes 
20.8 	projections of market changes resulting 
20.9 	from developments in biotechnology and the 
20.10 	development of 20-year goals, strategies, and 
20.11 	identified objectives for renewable energy, 
20.12 	medical devices, biopharma, and biologics 
20.13 	business development in Minnesota; 
20.14 	(3) the design and construction of a 
20.15 	Minnesota focused bioscience business 
20.16 	model to test competing strategies and 
20.17 	scenarios, evaluate options, and forecast 
20.18 	outcomes; and 
20.19 	(4) creation of a bioscience business 
20.20 	resources network that includes development 
20.21 	of a statewide bioscience business economic 
20.22 	development framework to encourage 
20.23 	bioscience business development and 
20.24 	encourage spin-off activities, attract 
20.25 	bioscience business location or expansion in 
20.26 	Minnesota, and establish a local capability to 
20.27 	support strategic system level planning for 
20.28 	industry, government, and academia. 
20.29 	This appropriation is available until June 30, 
20.30 	2009. 
20.31 	(n) $125,000 the first year is to develop and 
20.32 	operate a bioscience business marketing 
20.33 	program to market Minnesota bioscience 
20.34 	businesses and business opportunities 
20.35 	to other states and other countries. The 
21.1 	bioscience business marketing program must 
21.2 	emphasize bioscience business location and 
21.3 	expansion opportunities in communities 
21.4 	outside of the seven-county metropolitan 
21.5 	area as defined in Minnesota Statutes, 
21.6 	section 473.121, subdivision 2, that have 
21.7 	established collaborative plans among two 
21.8 	or more municipal units for bioscience 
21.9 	business activities, and that are within 15 
21.10 	miles of a four-year, baccalaureate degree 
21.11 	granting institution or a two-year technical 
21.12 	or community college that offers bioscience 
21.13 	curricula. The commissioner must report 
21.14 	to the committees of the senate and house 
21.15 	of representatives having jurisdiction 
21.16 	over bioscience and technology issues by 
21.17 	February 1 of each year on the expenditures 
21.18 	of these funds and the promotional activities 
21.19 	undertaken to market the Minnesota 
21.20 	bioscience industry to persons outside of the 
21.21 	state. This is a onetime appropriation and is 
21.22 	available until expended. 
21.23 	(o) $325,000 is for a grant to the Walker 
21.24 	Area Community Center, Inc., to construct, 
21.25 	furnish, and equip the Walker Area 
21.26 	Community Center. This appropriation is 
21.27 	not available until the commissioner has 
21.28 	determined that an amount sufficient to 
21.29 	complete the project has been committed 
21.30 	from nonstate sources. This is a onetime 
21.31 	appropriation and is available until expended. 
21.32 	(p) $100,000 the first year is for a grant 
21.33 	to the Pine Island Economic Development 
21.34 	Authority for predesign to upgrade and 
21.35 	extend utilities to serve Elk Run Bioscience 
21.36 	Research Park and The Falls - Healthy 
22.1 	Living By Nature, an integrated medicine 
22.2 	facility. This is a onetime appropriation and 
22.3 	is available until expended. 
22.4 	(q) $350,000 the first year is for a grant 
22.5 	to Thomson Township for infrastructure 
22.6 	improvements for the industrial park. This 
22.7 	is a onetime appropriation and is available 
22.8 	until expended. 
22.9 	(r) $75,000 the first year is for a grant to 
22.10 	Le Sueur County for the cost of cleaning 
22.11 	up debris from lakes in Le Sueur County, 
22.12 	caused by the August 24, 2006, tornado in 
22.13 	southern Le Sueur County. This is a onetime 
22.14 	appropriation and is available until expended. 
22.15 	(s) $400,000 the first year is for a grant to 
22.16 	the city of Rogers to be used for relief from 
22.17 	damages caused by the September 16, 2006, 
22.18 	tornado. 
22.19 	(t) $75,000 the first year is for a grant to 
22.20 	the city of Warroad for new public facilities 
22.21 	to replace those damaged or destroyed 
22.22 	by the August 2006 tornado, including 
22.23 	approximately 28 new street lights and 
22.24 	underground electrical circuits and a new 
22.25 	fish cleaning house. This is a onetime 
22.26 	appropriation and is available until expended. 
22.27 	If an appropriation for this purpose is enacted 
22.28 	more than once in the 2007 session, the 
22.29 	appropriation is effective only once. 
22.30 	(u) $500,000 the first year is for a grant to 
22.31 	the Upper Sioux Community to improve the 
22.32 	current water system to ensure continuity 
22.33 	of service to the entire population of the 
22.34 	community and to meet the demands of the 
22.35 	community expansion over the next 20 years. 
23.1 	The is a onetime appropriation and is not 
23.2 	available until the Public Facilities Authority 
23.3 	has determined that at least $1,000,000 has 
23.4 	been committed from nonstate sources. This 
23.5 	appropriation is available until expended. * 
23.6 	(The preceding text beginning "(u) $500,000 
23.7 	the first year is for" was indicated as vetoed 
23.8 	by the governor.) 
23.9 	(v) $755,000 the first year is for the urban 
23.10 	challenge grant program under Minnesota 
23.11 	Statutes, section 116M.18. This is a onetime 
23.12 	appropriation. 
23.13 	(w) $1,100,000 is for a grant to the 
23.14 	Neighborhood Development Center for 
23.15 	assistance necessary to retain minority 
23.16 	business enterprises at the Global Market. 
23.17 	This is a onetime appropriation and is 
23.18 	available until expended. 
23.19 	(x) $350,000 the first year is for a onetime 
23.20 	grant to the city of Inver Grove Heights 
23.21 	to reduce debt on the Inver Grove Heights 
23.22 	Veterans Memorial Community Center. * 
23.23 	(The preceding text beginning "(x) $350,000 
23.24 	the first year is for" was indicated as vetoed 
23.25 	by the governor.) 
23.26 	(y) $14,900,000 the first year is for the 
23.27 	Minnesota minerals 21st century fund created 
23.28 	in Minnesota Statutes, section 116J.423, to 
23.29 	partially restore the money unallotted by the 
23.30 	commissioner of finance in 2003 pursuant 
23.31 	to Minnesota Statutes, section 16A.152. 
23.32 	This appropriation may be used as provided 
23.33 	in Minnesota Statutes, section 116J.423, 
23.34 	subdivision 2. This appropriation is available 
23.35 	until expended. 
24.1 	(z) $2,500,000 the first year is for a grant to 
24.2 	the city of St. Paul to be used to pay, redeem, 
24.3 	or refund debt service costs incurred for the 
24.4 	River Centre Campus. * (The preceding text 
24.5 	beginning "(z) $2,500,000 the first year is 
24.6 	for" was indicated as vetoed by the governor.) 
24.7 	(aa) $147,000 each year is appropriated from 
24.8 	the general fund to the commissioner of 
24.9 	employment and economic development for 
24.10 	grants of $49,000 to eligible organizations 
24.11 	each year and for the purposes of this 
24.12 	paragraph. Each state grant dollar must be 
24.13 	matched with $1 of nonstate funds. Any 
24.14 	balance in the first year does not cancel but 
24.15 	is available in the second year. The base for 
24.16 	these grants in fiscal years 2010 and 2011 
24.17 	is $189,000 each year, with each eligible 
24.18 	organization receiving a $63,000 grant each 
24.19 	year. 
24.20 	The commissioner of employment and 
24.21 	economic development must make grants to 
24.22 	organizations to assist in the development 
24.23 	of entrepreneurs and small businesses. 
24.24 	Three grants must be awarded to continue 
24.25 	or to develop a program. One grant must 
24.26 	be awarded to the Riverbend Center for 
24.27 	Entrepreneurial Facilitation in Blue Earth 
24.28 	County, and two to other organizations 
24.29 	serving Faribault and Martin Counties. Grant 
24.30 	recipients must report to the commissioner 
24.31 	by February 1 of each year that the 
24.32 	organization receives a grant with the 
24.33 	number of customers served; the number of 
24.34 	businesses started, stabilized, or expanded; 
24.35 	the number of jobs created and retained; and 
24.36 	business success rates. The commissioner 
25.1 	must report to the house of representatives 
25.2 	and senate committees with jurisdiction 
25.3 	over economic development finance on the 
25.4 	effectiveness of these programs for assisting 
25.5 	in the development of entrepreneurs and 
25.6 	small businesses. 
25.7 	(bb) $5,000,000 the first year is for grants 
25.8 	under Minnesota Statutes, section 116J.8731, 
25.9 	for the Minnesota investment fund program. 
25.10 	Of this amount, up to $3,000,000 may 
25.11 	be used for a legal reference office and 
25.12 	data center facility, provided that the total 
25.13 	capital investment in the facility is at least 
25.14 	$60,000,000. This grant is not subject to 
25.15 	grant limitations under Minnesota Statutes, 
25.16 	section 116J.8731, subdivision 5. This is 
25.17 	a onetime appropriation and is available in 
25.18 	either year of the biennium. 

25.19 	Sec. 11.  REPEALER.
 25.20 	Laws 2004, chapter 188, section 2, is repealed.

25.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.22 	ARTICLE 3
25.23 	ENTREPRENEURIAL ECONOMIC DEVELOPMENT

25.24 	Section 1. Minnesota Statutes 2006, section 116J.03, is amended by adding a 
25.25 	subdivision to read:
25.26 		Subd. 4.Targeted rural opportunity community. "Targeted rural opportunity 
25.27 	community" means a city or township in a county that either lost population from 1980 
25.28 	to 2000 according to the decennial census or had an unemployment rate higher than the 
25.29 	Minnesota state annual average in 2006 according to local area unemployment statistics 
25.30 	published by the Department of Employment and Economic Development.

25.31 	Sec. 2. [116J.432] RURAL ENTERPRISE MICROLOAN PROGRAM.
26.1 		Subdivision 1.Definitions. For purposes of this section, the definitions in this 
26.2 	subdivision have the meanings given them:
26.3 	(1) "Commissioner" means the commissioner of employment and economic 
26.4 	development.
26.5 	(2) "Nonprofit corporation" means a corporation organized and operating under 
26.6 	chapter 317A and holding tax exempt status under section 501(c)(3), 501(c)(4)(A), or 
26.7 	501(c)(5) of the Internal Revenue Code, or a Minnesota private foundation meeting the 
26.8 	definition of section 509 of the Internal Revenue Code.
26.9 	(3) "Rural areas" means those areas of Minnesota located outside the metropolitan 
26.10 	area as defined in section 473.121, subdivision 2.
26.11 		Subd. 2.Established. The rural enterprise microloan program is created to provide 
26.12 	rural enterprise grants to nonprofit corporations to encourage private investment, create 
26.13 	jobs for persons in rural areas, and promote economic development.
26.14 		Subd. 3.Eligibility. The commissioner shall enter into agreements with nonprofit 
26.15 	corporations to provide rural enterprise microloans in rural areas as provided under this 
26.16 	section. In order to qualify for a rural enterprise microloan grant, a corporation must 
26.17 	demonstrate that the corporation:
26.18 	(1) has a board of directors that includes citizens experienced in business lending 
26.19 	and development, the operations of rural business enterprises, and the creation of jobs in 
26.20 	low-income, economically disadvantaged rural areas;
26.21 	(2) has the technical skills to analyze projects;
26.22 	(3) is familiar with other available public and private funding sources and economic 
26.23 	development programs;
26.24 	(4) can initiate and implement economic development projects;
26.25 	(5) can establish and administer a rural enterprise microloan account which will be 
26.26 	used to disburse loans to qualifying businesses and receive loan repayments; and
26.27 	(6) has demonstrated a capacity to deliver financial, technical, managerial, and 
26.28 	marketing assistance to a business enterprise receiving a microloan under this section. 
26.29 	This assistance may be delivered by the nonprofit corporation or through other appropriate 
26.30 	organizations as provided by the nonprofit corporation through written agreements.
26.31 		Subd. 4.Revolving loan funds. Nonprofit corporations must establish a revolving 
26.32 	loan fund to receive rural enterprise microloan grants. Grants must be used to make 
26.33 	loans to new and expanding for-profit business enterprises in rural areas, targeted rural 
26.34 	opportunity communities, and disadvantaged business enterprises in rural areas in order to 
26.35 	promote business enterprises and job creation.
27.1 		Subd. 5.Revolving fund administration. (a) The department shall establish a 
27.2 	maximum interest rate for loans made under this section.
27.3 	(b) Loan repayment amounts, including principal and interest, must be deposited 
27.4 	in a revolving fund created by the nonprofit corporation to be used for additional loans 
27.5 	consistent with the loan criteria specified in this section or as allowed under paragraph (c).
27.6 	(c) Expenses incurred by a nonprofit corporation in providing financial, technical, 
27.7 	managerial, and marketing assistance to a business enterprise receiving a loan under 
27.8 	this section may be paid out of interest earned from rural enterprise loans, as allowed 
27.9 	by the department.
27.10 		Subd. 6.Loan criteria. (a) The criteria in this subdivision apply to loans made or 
27.11 	guaranteed by nonprofit corporations under the rural enterprise microloan program.
27.12 	(b) Loans or guarantees must be made to businesses that are not likely to undertake a 
27.13 	project for which loans are sought without assistance from the rural enterprise microloan 
27.14 	program.
27.15 	(c) The minimum state contribution to a loan or guarantee is $1,000 and the 
27.16 	maximum is $50,000.
27.17 	(d) The state contributions must be matched by at least an equal amount of new 
27.18 	private investment.
27.19 		Subd. 7.Reporting requirement. A nonprofit corporation that receives a rural 
27.20 	enterprise microloan grant shall submit, in a format prescribed by the department, an 
27.21 	annual report by October 1 of each year that provides information as to the use and impact 
27.22 	of the grant funds.
27.23 		Subd. 8.Report to legislature. The commissioner shall submit an annual report 
27.24 	that provides information as to the use and impact of the funds provided under this section, 
27.25 	by January 15 of each year to the economic development committees of the senate and 
27.26 	house of representatives.
27.27 		Subd. 9.Rules. The commissioner shall adopt rules for eligibility, revolving fund 
27.28 	administration, and other details of rural enterprise microloans, using the expedited 
27.29 	process under section 14.389.

27.30 	Sec. 3. Minnesota Statutes 2006, section 116J.656, is amended to read:
27.31 	116J.656 ~~SMALL BUSINESS ACCESS TO FEDERAL RESEARCH FUNDS~~
27.32 	OFFICE OF TECHNOLOGY AND COMMERCIALIZATION.
27.33 	(a) ~~The commissioner shall assist small businesses to access federal money through~~ 
27.34 	~~the federal Small Business Innovation Research program and the Small Business~~ 
27.35 	~~Technology Transfer program.~~ The commissioner shall establish within the department 
28.1 	an Office of Technology and Commercialization. The Office of Technology and 
28.2 	Commercialization shall serve as an intermediary to leverage and coordinate regional 
28.3 	public and private resources to maximize technology-related economic growth and 
28.4 	shall serve as an intermediary in assisting small businesses in forming alliances and 
28.5 	joint ventures with medium- and large-sized corporations. The office shall provide 
28.6 	entrepreneurial and innovation services to expand the competitiveness of high technology 
28.7 	companies. These services shall include, but not be limited to, technology training and 
28.8 	information exchange; assistance with federal funding sources, to include the small 
28.9 	business innovation research and small business technology transfer programs; and 
28.10 	assistance in forming alliances for technology development and commercialization. In 
28.11 	providing ~~this assistance~~ these services, the commissioner shall maintain connections to 
28.12 	eligible federal programs, assess specific funding opportunities, review funding proposals, 
28.13 	provide referrals to specific consulting services, and hold training workshops throughout 
28.14 	the state. 
28.15 	(b) Unless prohibited by federal law, the commissioner must implement fees for 
28.16 	services that help companies seek federal Phase II Small Business Innovation Research 
28.17 	grants. The fees must be deposited in a special revenue account and are annually 
28.18 	appropriated to the commissioner for the small business innovation research and small 
28.19 	business technology transfer programs.

28.20 	Sec. 4. Minnesota Statutes 2006, section 116J.66, is amended to read:
28.21 	116J.66 ~~BUSINESS ASSISTANCE~~ OFFICE OF ENTREPRENEURSHIP AND 
28.22 	SMALL BUSINESS DEVELOPMENT.
28.23 	The commissioner shall establish within the department ~~a business assistance center.~~ 
28.24 	~~The center~~ an Office of Entrepreneurship and Small Business Development, which shall 
28.25 	consist of:
28.26 	(1) ~~a Bureau of Small Business which shall have as its sole function the provision~~ 
28.27 	~~of assistance~~ an entrepreneurs network which shall serve as the state's central network 
28.28 	for entrepreneurs and small businesses to access qualified network member providers of 
28.29 	entrepreneurial and small business assistance, to access developed and shared business 
28.30 	information and research resources, and to develop policy recommendations that support 
28.31 	development of entrepreneurs and small businesses;
28.32 	(2) an entrepreneur and small business development center network which shall 
28.33 	operate a network of small business development centers throughout the state under a 
28.34 	cooperative agreement with the United States Small Business Administration pursuant to 
28.35 	United States Code, title 15, section 648;
29.1 	(3) an Office of Business Information and Professional Services to provide 
29.2 	information and professional assistance and guidance to small businesses in the state 
29.3 	~~and (2)~~;
29.4 	(4)  a Bureau of Licenses to assist all businesses in obtaining state licenses and 
29.5 	permits~~. This center shall be accorded at least equal status with the other major operating~~ 
29.6 	~~units within the department.~~; and
29.7 	(5) an Office of Technology and Commercialization to provide entrepreneurial and 
29.8 	innovation services to high technology companies.

29.9 	Sec. 5. Minnesota Statutes 2006, section 116J.68, is amended to read:
29.10 	116J.68 ~~BUREAU OF SMALL BUSINESS~~ OFFICE OF BUSINESS 
29.11 	INFORMATION AND PROFESSIONAL SERVICES.
29.12 		Subdivision 1.Generally; definition. (a) The ~~Bureau of Small Business~~ Office of 
29.13 	Business Information and Professional Services within the ~~business assistance center~~
29.14 	Office of Entrepreneurship and Small Business Development shall serve as a clearinghouse 
29.15 	and referral service for information needed by small businesses including small targeted 
29.16 	group businesses and small businesses located in an economically disadvantaged area.
29.17 	(b) For purposes of this section, "office" means the Office of Business Information 
29.18 	and Professional Services.
29.19 		Subd. 2.Duties. The ~~bureau~~ office shall:
29.20 	~~(a)~~(1) provide information and assistance with respect to all aspects of business 
29.21 	planning and business management related to the start-up, operation, or expansion of 
29.22 	a small business in Minnesota;
29.23 	~~(b)~~(2) refer persons interested in the start-up, operation, or expansion of a small 
29.24 	business in Minnesota to assistance programs sponsored by federal agencies, state 
29.25 	agencies, educational institutions, chambers of commerce, civic organizations, community 
29.26 	development groups, private industry associations, and other organizations or to the 
29.27 	business assistance referral system established by the ~~Minnesota Project Outreach~~ 
29.28 	~~Corporation~~ Office of Entrepreneurship and Small Business Development;
29.29 	~~(c)~~(3) plan, develop, and implement a master file of information on small business 
29.30 	assistance programs of federal, state, and local governments, and other public and private 
29.31 	organizations so as to provide comprehensive, timely information to the ~~bureau's~~office's 
29.32 	clients;
29.33 	~~(d)~~(4) employ staff with adequate and appropriate skills and education and training 
29.34 	for the delivery of information and assistance;
30.1 	~~(e)~~(5) seek out and utilize, to the extent practicable, contributed expertise and 
30.2 	services of federal, state, and local governments, educational institutions, and other public 
30.3 	and private organizations;
30.4 	~~(f)~~(6) maintain a close and continued relationship with the director of the 
30.5 	procurement program within the Department of Administration so as to facilitate the 
30.6 	department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the 
30.7 	small targeted group business and economically disadvantaged business program of the 
30.8 	state; 
30.9 	~~(g)~~(7) develop an information system which will enable the commissioner and other 
30.10 	state agencies to efficiently store, retrieve, analyze, and exchange data regarding small 
30.11 	business development and growth in the state. All executive branch agencies of state 
30.12 	government and the secretary of state shall to the extent practicable, assist the ~~bureau~~
30.13 	office in the development and implementation of the information system;
30.14 	~~(h)~~(8) establish and maintain a toll free telephone number so that all small business 
30.15 	persons anywhere in the state can call the ~~bureau~~ office for assistance. An outreach 
30.16 	program shall be established to make the existence of the ~~bureau~~ office well known to its 
30.17 	potential clientele throughout the state. If the small business person requires a referral 
30.18 	to another provider the ~~bureau~~ office may use the business assistance referral system 
30.19 	established by the ~~Minnesota Project Outreach Corporation~~ Office of Entrepreneurship 
30.20 	and Small Business Development;
30.21 	~~(i)~~(9) conduct research and provide data as required by the state legislature;
30.22 	~~(j)~~(10) develop and publish material on all aspects of the start-up, operation, or 
30.23 	expansion of a small business in Minnesota;
30.24 	~~(k)~~(11) collect and disseminate information on state procurement opportunities, 
30.25 	including information on the procurement process; and
30.26 	~~(l)~~(12) develop a public awareness program through the use of newsletters, personal 
30.27 	contacts, and electronic and print news media advertising about state assistance programs 
30.28 	for small businesses, including those programs specifically for socially disadvantaged 
30.29 	small business persons~~;~~.
30.30 	~~(m) enter into agreements with the federal government and other public and private~~ 
30.31 	~~entities to serve as the statewide coordinator or host agency for the federal small business~~ 
30.32 	~~development center program under United States Code, title 15, section 648; and~~
30.33 	~~(n) assist providers in the evaluation of their programs and the assessment of~~ 
30.34 	~~their service area needs. The bureau may establish model evaluation techniques and~~ 
30.35 	~~performance standards for providers to use.~~
31.1 		Subd. 5.Advisory board meetings. (a) If compliance with section 13D.02 is 
31.2 	impractical, the Small Business Development Center Advisory Board, created pursuant 
31.3 	to United States Code, title 15, section 648, may conduct a meeting of its members by 
31.4 	telephone or other electronic means so long as the following conditions are met:
31.5 	(1) all members of the board participating in the meeting, wherever their physical 
31.6 	location, can hear one another and can hear all discussion and testimony;
31.7 	(2) members of the public present at the regular meeting location of the board can 
31.8 	hear clearly all discussion and testimony and all votes of members of the board and, if 
31.9 	needed, receive those services required by sections 15.44 and 15.441;
31.10 	(3) at least one member of the board is physically present at the regular meeting 
31.11 	location; and
31.12 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
31.13 	identified and recorded.
31.14 	(b) Each member of the board participating in a meeting by telephone or other 
31.15 	electronic means is considered present at the meeting for purposes of determining a 
31.16 	quorum and participating in all proceedings.
31.17 	(c) If telephone or other electronic means is used to conduct a meeting, the board, 
31.18 	to the extent practical, shall allow a person to monitor the meeting electronically from a 
31.19 	remote location. The board may require the person making such a connection to pay for 
31.20 	documented marginal costs that the board incurs as a result of the additional connection.
31.21 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
31.22 	emergency meeting, the board shall provide notice of the regular meeting location, of the 
31.23 	fact that some members may participate by telephone or other electronic means, and of 
31.24 	the provisions of paragraph (c). The timing and method of providing notice is governed 
31.25 	by section 13D.04.

31.26 	Sec. 6. [116J.8749] SMALL BUSINESS PRODUCT DEVELOPMENT 
31.27 	PROGRAM.
31.28 		Subdivision 1.Establishment. The commissioner of employment and economic 
31.29 	development shall implement a small business product development program to assist 
31.30 	entrepreneurs and businesses in demonstrating the feasibility of a technology or 
31.31 	completing new product development, leading to the commercialization of new products 
31.32 	though industry and research partnerships.
31.33 		Subd. 2.Awards. Funds shall be awarded to entities that conduct research who 
31.34 	agree to provide these services to a specific business or entrepreneur.
32.1 		Subd. 3.Application. Applications must be coauthored by the business 
32.2 	or entrepreneur and must demonstrate commercial potential and time frames for 
32.3 	commercialization. Applications must be approved through an internal review committee 
32.4 	within the research institution to assess the technology and business plan prior to official 
32.5 	submission to the state entity.
32.6 		Subd. 4.Eligibility. (a) Eligible institutions include, but are not limited to, all 
32.7 	Minnesota-based two- and four-year colleges and universities and other publicly funded 
32.8 	research organizations.
32.9 	(b) Eligible businesses must be Minnesota-based with either headquarters or a 
32.10 	majority of operations in the state. If relocating, businesses must set up headquarters or 
32.11 	have a majority of its operations in the state within one year of award.
32.12 		Subd. 5.Review board. The Department of Employment and Economic 
32.13 	Development will assemble a technical and business review board to evaluate the 
32.14 	applications.
32.15 		Subd. 6.Limitations. Funds used for a single business may not exceed $25,000 
32.16 	per calendar year and must be matched dollar-for-dollar by the business with additional 
32.17 	cash or in-kind contributions. Up to 50 percent of the awards may be made to small 
32.18 	businesses that receive federal funding for research. Funds expended prior to the start of 
32.19 	the award will not be considered as match.
32.20 		Subd. 7.Rules. The commissioner shall adopt rules for eligibility and other details 
32.21 	of the small business product development program, using the expedited process under 
32.22 	section 14.389.

32.23 	Sec. 7. [116J.9805] MAIN STREET REVITALIZATION GRANT PROGRAM.
32.24 		Subdivision 1.Grants. (a) The Main Street revitalization grant program is created 
32.25 	to provide grants to eligible communities to increase business creation, promote business 
32.26 	retention, or make general, viable, economic improvements to eligible communities or 
32.27 	business districts within an eligible community.
32.28 	(b) Eligible activities include, but are not limited to, rehabilitation, new construction, 
32.29 	demolition of buildings, financing for public infrastructure that benefits the business 
32.30 	district, the installation of new technology or equipment for business to either remain 
32.31 	or be more competitive.
32.32 	(c) The Department of Employment and Economic Development shall administer 
32.33 	funds appropriated for the Main Street revitalization grant program as required under 
32.34 	section 116J.980.
33.1 		Subd. 2.Eligibility. Targeted rural opportunity communities as defined in section 
33.2 	116J.03, subdivision 4, are eligible for a grant under this section. An application to 
33.3 	the small cities development program will be considered as an application to the Main 
33.4 	Street revitalization grant program if all other eligibility requirements for the Main Street 
33.5 	revitalization grant program are met.
33.6 		Subd. 3.Application process. The commissioner shall award grants to eligible 
33.7 	communities based on an evaluation of economic and business-related needs, using 
33.8 	the same competitive application criteria, exclusive of the HUD federal objective 
33.9 	requirements, developed for the small cities development program. Funds shall be 
33.10 	disbursed to eligible communities according to the procedures used by the small cities 
33.11 	development program.
33.12 		Subd. 4.Limitations. A grant may not exceed $600,000 per activity per eligible 
33.13 	applicant.
33.14 		Subd. 5.Local match requirement. A local match shall be required for each grant 
33.15 	awarded, with preference given to projects that leverage private investment or nonstate 
33.16 	funding resources and do not use federal funds as a match.
33.17 		Subd. 6.Carryforward. Any funds not allocated, obligated, or expended in a fiscal 
33.18 	year shall be available for allocation, obligation, or expenditure in the following fiscal year.

33.19 	Sec. 8. [116J.9825] COMMUNITY LEADERSHIP AND PLANNING 
33.20 	PROGRAM.
33.21 		Subdivision 1.Establishment. The commissioner of employment and economic 
33.22 	development shall establish the community leadership and planning program to award 
33.23 	grants to qualified organizations to support leadership development and planning.
33.24 		Subd. 2.Eligibility. Grants are only available to targeted rural opportunity 
33.25 	communities, as defined in section 116J.03, subdivision 4.
33.26 		Subd. 3.Grants; limits. Grants must be awarded to organizations that have 
33.27 	demonstrated experience in implementing community leadership and planning programs. 
33.28 	Priority must be given to projects which will provide the intended services in rural 
33.29 	communities that otherwise would not have access to them. A grant must not exceed 
33.30 	$50,000.
33.31 		Subd. 4.Use of funds. (a) Grants must be used for programs that:
33.32 	(1) help rural community members increase members' leadership skills to address 
33.33 	community issues and needs;
33.34 	(2) assist in evaluation of community assets, needs, and priorities;
34.1 	(3) support an understanding of the community's place in the regional economy and 
34.2 	appropriate plans based on that understanding; and 
34.3 	(4) develop action plans that the communities can use for future growth and 
34.4 	improvement.
34.5 	(b) The commissioner may award a portion of the funds for projects intended 
34.6 	for participation by multiple communities to facilitate leadership and planning among 
34.7 	communities with similar issues and regional interaction.
34.8 		Subd. 5.Matching funds. The commissioner shall require that when state funds are 
34.9 	awarded, the grants must be matched by at least an equal amount of nonstate funds.
34.10 		Subd. 6.Report required. The commissioner of employment and economic 
34.11 	development must report to the legislative chairs of the economic development policy 
34.12 	and finance committees, by September 1, 2009, on the first grant awards, the outcomes, 
34.13 	and recommendations for improvement in the program.
34.14 		Subd. 7.Rules. The commissioner shall adopt rules for eligibility, use of funds, 
34.15 	and other details of the community leadership and planning program using the expedited 
34.16 	process under section 14.389.

34.17 	Sec. 9. Minnesota Statutes 2006, section 116L.02, is amended to read:
34.18 	116L.02 JOB SKILLS PARTNERSHIP PROGRAM.
34.19 	(a) The Minnesota Job Skills Partnership program is created to act as a catalyst to 
34.20 	bring together employers with specific training needs with educational or other nonprofit 
34.21 	institutions which can design programs to fill those needs. The partnership shall work 
34.22 	closely with employers to prepare, train and place prospective or incumbent workers in 
34.23 	identifiable positions as well as assisting educational or other nonprofit institutions in 
34.24 	developing training programs that coincide with current and future employer requirements. 
34.25 	The partnership shall provide grants to educational or other nonprofit institutions for 
34.26 	the purpose of training workers. A participating business must match the grant-in-aid 
34.27 	made by the Minnesota Job Skills Partnership. The match may be in the form of funding, 
34.28 	equipment, or faculty.
34.29 	(b) The partnership program shall administer the health care and human services 
34.30 	worker training and retention program under sections 116L.10 to 116L.15. 
34.31 	(c) The partnership program is authorized to use funds to pay for training for 
34.32 	individuals who have incomes at or below 200 percent of the federal poverty line. 
34.33 	The board may grant funds to eligible recipients to pay for board-certified training. 
34.34 	Eligible recipients of grants may include public, private, or nonprofit entities that provide 
34.35 	employment services to low-income individuals.
35.1 	(d) The partnership program shall administer the rural workforce innovation grant 
35.2 	program under section 116L.175.

35.3 	Sec. 10. [116L.175] RURAL WORKFORCE INNOVATION GRANTS.
35.4 		Subdivision 1.Purpose. The rural workforce innovation grant program is created to 
35.5 	promote incumbent worker training at small businesses in rural Minnesota. This program 
35.6 	and the related grants and training will assist small businesses in increasing employee skill 
35.7 	development, worker productivity, and overall job security for trained workers.
35.8 		Subd. 2.Definitions. (a) for the purposes of this section, the following terms have 
35.9 	the meanings given them.
35.10 	(b) "Incumbent worker" means an individual employed by a qualifying employer, 
35.11 	who is paid by that employer for at least 20 hours per week.
35.12 	(c) "Qualifying employer" means a for-profit business or nonprofit organization 
35.13 	located in a targeted rural opportunity community as defined in section 116J.03, 
35.14 	subdivision 4, with at least one but no more than 50 full-time paid employees. Public 
35.15 	sector organizations are not considered qualifying employers.
35.16 	(d) "Direct training services" are services provided by an accredited educational 
35.17 	program or institution. These services include, but are not limited to, occupational skills 
35.18 	training, customized training, entrepreneurial training, on-the-job training, and other 
35.19 	training that results in an industry-recognized credential.
35.20 		Subd. 3.Grants. At the beginning of each fiscal year, the board shall make initial 
35.21 	grants to any number of local workforce investment boards using a competitive process. 
35.22 	The board shall spend at least 75 percent of its annual appropriation on these initial 
35.23 	grants. Following the initial allocation, the board may make subsequent grants at the 
35.24 	request of local workforce investment boards. The board shall make all grants based on 
35.25 	demonstrated need, likely impact, and other criteria as necessary.
35.26 		Subd. 4.Use of funds. Local workforce investment boards shall use funds granted 
35.27 	under this section for direct training services at qualifying employers, to provide a 
35.28 	measurable increase in the job-related skills of participating incumbent workers. Local 
35.29 	workforce investment boards may also use funds to provide basic assessment, counseling, 
35.30 	and preemployment training services requested by the qualifying employer. No funds 
35.31 	may be used for support services as described in section 116L.17, subdivision 4, clause 
35.32 	(2). No funds may be used to pay or supplement the wages of a qualifying employer's 
35.33 	employees. No qualifying employer shall receive more than $50,000 per year for activities 
35.34 	under this section.
36.1 		Subd. 5.Administrative costs. The board may spend, and allow local workforce 
36.2 	investment boards to spend, funds for administrative costs. The limits on these costs shall 
36.3 	be consistent with those established for other programs under the authority of the board.
36.4 		Subd. 6.Matching funds requirement. The board may establish statewide 
36.5 	matching requirements for qualifying employers. Those requirements may include any or 
36.6 	all of the following: funding, equipment, or faculty. The board shall consult with local 
36.7 	workforce investment boards in establishing any statewide matching requirements.
36.8 		Subd. 7.Accountability and performance measures. The board and the 
36.9 	commissioner of employment and economic development shall jointly develop 
36.10 	performance outcome measures and standards for this program. The commissioner and 
36.11 	the board shall consult with local workforce investment boards in establishing standards. 
36.12 	Measures, at a minimum, shall include posttraining retention, promotion, and wage 
36.13 	increase. The board and commissioner shall provide a report to the legislature by March 1 
36.14 	of each year regarding the previous fiscal year's program performance. Local workforce 
36.15 	investment boards shall provide all necessary data in a timely manner for the completion 
36.16 	of this report, as well as any interim reports required by the board.

36.17 	Sec. 11. EFFECTIVE DATE.
 36.18 	Sections 1 to 10 are effective the day following final enactment.

36.19 	ARTICLE 4
36.20 	VETERANS LOANS

36.21 	Section 1. [116J.996] MILITARY RESERVIST ECONOMIC INJURY LOANS.
36.22 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
36.23 	section.
36.24 	(b) "Active service" has the meaning given in section 190.05.
36.25 	(c) "Commissioner" means the commissioner of employment and economic 
36.26 	development.
36.27 	(d) "Eligible business" means a small business, as defined in section 645.445, that 
36.28 	was operating in Minnesota on the date a military reservist received orders for active 
36.29 	service.
36.30 	(e) "Essential employee" means a military reservist who is an owner or employee 
36.31 	of an eligible business and whose managerial or technical expertise is critical to the 
36.32 	day-to-day operation of the eligible business.
36.33 	(f) "Military reservist" means a member of the reserve component of the armed 
36.34 	forces.
37.1 	(g) "Reserve component of the armed forces" has the meaning given it in United 
37.2 	States Code, title 10, section 101(c).
37.3 	(h) "Substantial economic injury" means an economic harm to an eligible business 
37.4 	that results in the inability of the eligible business to:
37.5 	(1) meet its obligations as they mature;
37.6 	(2) pay its ordinary and necessary operating expenses; or
37.7 	(3) manufacture, produce, market, or provide a product or service ordinarily 
37.8 	manufactured, produced, marketed, or provided by the eligible business.
37.9 		Subd. 2.Loan program. The commissioner may make onetime, interest-free loans 
37.10 	of up to $20,000 per borrower to eligible businesses that have sustained or are likely to 
37.11 	sustain substantial economic injury as a result of the call to active service for 180 days 
37.12 	or more of an essential employee. Loans must be made for the purpose of preventing, 
37.13 	remedying, or ameliorating the substantial economic injury.
37.14 		Subd. 3.Revolving loan account. The commissioner shall use money appropriated 
37.15 	for the purpose to establish a revolving loan account. All repayments of loans made 
37.16 	under this section, including principal and interest, must be deposited into this account. 
37.17 	Interest earned on money in the account accrues to the account. Money in the account is 
37.18 	appropriated to the commissioner for purposes of the loan program created in this section, 
37.19 	including costs incurred by the commissioner to establish and administer the program.
37.20 		Subd. 4.Rules. Using the expedited rulemaking procedures of section 14.389, the 
37.21 	commissioner shall develop and publish expedited rules for loan applications, use of 
37.22 	funds, needed collateral, terms of loans, and other details of military reservist economic 
37.23 	injury loans.

37.24 	Sec. 2. Minnesota Statutes 2007 Supplement, section 116L.17, subdivision 1, is 
37.25 	amended to read:
37.26 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
37.27 	have the meanings given them in this subdivision.
37.28 	(b) "Commissioner" means the commissioner of employment and economic 
37.29 	development.
37.30 	(c) "Dislocated worker" means an individual who is a resident of Minnesota at the 
37.31 	time employment ceased or was working in the state at the time employment ceased and:
37.32 	(1) has been permanently separated or has received a notice of permanent separation 
37.33 	from public or private sector employment and is eligible for or has exhausted entitlement 
37.34 	to unemployment benefits, and is unlikely to return to the previous industry or occupation;
38.1 	(2) has been long-term unemployed and has limited opportunities for employment 
38.2 	or reemployment in the same or a similar occupation in the area in which the individual 
38.3 	resides, including older individuals who may have substantial barriers to employment by 
38.4 	reason of age;
38.5 	(3) has been terminated or has received a notice of termination of employment as a 
38.6 	result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
38.7 	(4) has been self-employed, including farmers and ranchers, and is unemployed as a 
38.8 	result of general economic conditions in the community in which the individual resides 
38.9 	or because of natural disasters;
38.10 	(5) has been permanently separated from employment in a restaurant, bar, or 
38.11 	lawful gambling organization from October 1, 2007, to October 1, 2009, due to the 
38.12 	implementation of any state law prohibiting smoking; ~~or~~
38.13 	(6) is a veteran as defined by section 197.447, was deployed or discharged after 
38.14 	September 11, 2001, has been discharged or released from active duty under honorable 
38.15 	conditions, and is employed in a job which pays less than what the veteran could verifiably 
38.16 	earn, given additional marketable skills obtained during deployment; or
38.17 	~~(6)~~(7) is a displaced homemaker. A "displaced homemaker" is an individual who 
38.18 	has spent a substantial number of years in the home providing homemaking service and 
38.19 	(i) has been dependent upon the financial support of another; and now due to divorce, 
38.20 	separation, death, or disability of that person, must find employment to self support; or (ii) 
38.21 	derived the substantial share of support from public assistance on account of dependents 
38.22 	in the home and no longer receives such support.
38.23 	To be eligible under this clause, the support must have ceased while the worker 
38.24 	resided in Minnesota.
38.25 	(d) "Eligible organization" means a state or local government unit, nonprofit 
38.26 	organization, community action agency, business organization or association, or labor 
38.27 	organization.
38.28 	(e) "Plant closing" means the announced or actual permanent shutdown of a single 
38.29 	site of employment, or one or more facilities or operating units within a single site of 
38.30 	employment.
38.31 	(f) "Substantial layoff" means a permanent reduction in the workforce, which is 
38.32 	not a result of a plant closing, and which results in an employment loss at a single site 
38.33 	of employment during any 30-day period for at least 50 employees excluding those 
38.34 	employees that work less than 20 hours per week.

38.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.1 	Sec. 3. Minnesota Statutes 2007 Supplement, section 268.047, subdivision 2, is 
39.2 	amended to read:
39.3 		Subd. 2.Exceptions for all employers. Unemployment benefits paid will not be 
39.4 	used in computing the future tax rate of a taxpaying base period employer or charged to 
39.5 	the reimbursable account of a base period nonprofit or government employer that has 
39.6 	elected to be liable for reimbursements when:
39.7 	(1) the applicant was discharged from the employment because of aggravated 
39.8 	employment misconduct as determined under section 268.095. This exception applies 
39.9 	only to unemployment benefits paid for periods after the applicant's discharge from 
39.10 	employment; 
39.11 	(2) an applicant's discharge from that employment occurred because a law required 
39.12 	removal of the applicant from the position the applicant held;
39.13 	(3) the employer is in the tourist or recreation industry and is in active operation of 
39.14 	business less than 15 calendar weeks each year and the applicant's wage credits from the 
39.15 	employer are less than 600 times the applicable state or federal minimum wage;
39.16 	(4) the employer provided regularly scheduled part-time employment to the 
39.17 	applicant during the applicant's base period and continues to provide the applicant with 
39.18 	regularly scheduled part-time employment during the benefit year of at least 90 percent 
39.19 	of the part-time employment provided in the base period, and is an involved employer 
39.20 	because of the applicant's loss of other employment. This exception terminates effective 
39.21 	the first week that the employer fails to meet the benefit year employment requirements. 
39.22 	This exception applies to educational institutions without consideration of the period 
39.23 	between academic years or terms;
39.24 	(5) the employer is a fire department or firefighting corporation or operator of 
39.25 	a life-support transportation service, and continues to provide employment for the 
39.26 	applicant as a volunteer firefighter or a volunteer ambulance service personnel during the 
39.27 	benefit year on the same basis that employment was provided in the base period. This 
39.28 	exception terminates effective the first week that the employer fails to meet the benefit 
39.29 	year employment requirements;
39.30 	(6) the applicant's unemployment from this employer was a direct result of the 
39.31 	condemnation of property by a governmental agency, a fire, flood, or act of nature, 
39.32 	where 25 percent or more of the employees employed at the affected location, including 
39.33 	the applicant, became unemployed as a result. This exception does not apply where the 
39.34 	unemployment was a direct result of the intentional act of the employer or a person acting 
39.35 	on behalf of the employer;
40.1 	(7) the unemployment benefits were paid by another state as a result of the 
40.2 	transferring of wage credits under a combined wage arrangement provided for in section 
40.3 	268.131; 
40.4 	(8) the applicant stopped working because of a labor dispute at the applicant's 
40.5 	primary place of employment if the employer was not a party to the labor dispute;
40.6 	(9) the unemployment benefits were determined overpaid unemployment benefits 
40.7 	under section 268.18; ~~or~~
40.8 	(10) the applicant was employed as a replacement worker, for a period of six months 
40.9 	or longer, for an employee who is in the military reserve and was called for active duty 
40.10 	during the time the applicant worked as a replacement, and the applicant was laid off 
40.11 	because the employee returned to employment after active duty; or
40.12 	(11) the trust fund was reimbursed for the unemployment benefits by the federal 
40.13 	government.

40.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.15 	ARTICLE 5
40.16 	PUBLIC FACILITIES AUTHORITY

40.17 	Section 1. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 3, 
40.18 	is amended to read:
40.19 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
40.20 	assistance, as provided in subdivision 5a to  governmental units:
40.21 	(1) whose projects are listed on the Pollution Control Agency's project priority list;
40.22 	(2) that demonstrate their projects are a cost-effective solution to an existing 
40.23 	environmental or public health problem; and
40.24 	(3) whose projects are approved by the USDA/RECD or certified by the 
40.25 	commissioner of the Pollution Control Agency.
40.26 	(b) For a  governmental unit receiving grant funding from the USDA/RECD, 
40.27 	applications must be made to the USDA/RECD with additional information submitted to 
40.28 	the authority as required by the authority. Eligible project costs and affordability criteria 
40.29 	shall be determined by the USDA/RECD.
40.30 	(c) For a  governmental unit not receiving grant funding from the USDA/RECD, 
40.31 	application must be made to the authority on forms prescribed by the authority for the 
40.32 	clean water revolving fund program with additional information as required by the 
40.33 	authority. In accordance with section 116.182, the Pollution Control Agency shall: 
41.1 	(1) calculate the essential project component percentage which must be multiplied 
41.2 	by the total project cost to determine the eligible project cost; and
41.3 	(2) review and certify approved projects to the authority.
41.4 	(d) ~~At the time funds are appropriated under this section,~~ Each fiscal year the 
41.5 	authority shall make funds available for projects based on their ranking on the Pollution 
41.6 	Control Agency's project priority list. The authority shall reserve ~~supplemental assistance~~
41.7 	funds for ~~projects in order of their rankings on the Pollution Control Agency's project~~ 
41.8 	~~priority list and~~ a project when the applicant receives a funding commitment from the 
41.9 	United States Department of Agriculture Rural Development (USDA/RECD) or submits 
41.10 	plans and specifications to the Pollution Control Agency. Funds must be reserved in an 
41.11 	amount based on ~~their most recent~~ the project cost ~~estimates~~ estimate submitted to the 
41.12 	authority ~~or~~prior to the appropriation of the funds and awarded in the amount reserved 
41.13 	or an amount based on the as-bid costs, whichever is less.

41.14 	Sec. 2. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 5a, 
41.15 	is amended to read:
41.16 		Subd. 5a.Type and amount of assistance. (a) For a  governmental unit receiving 
41.17 	grant funding from the USDA/RECD, the authority shall provide assistance in the form 
41.18 	of a grant of up to ~~one-half~~ 65 percent of the eligible grant ~~amount~~ need determined by 
41.19 	USDA/RECD. A governmental unit may not receive a grant under this paragraph for more 
41.20 	than $4,000,000 or $15,000 per existing connection, whichever is less, unless specifically 
41.21 	approved by law. In the case of a sanitary district or other multijurisdictional project for 
41.22 	which the USDA/RECD is unable to fully fund ~~up to one-half~~ its share of the eligible grant 
41.23 	~~amount~~ need, the authority may provide up to an additional $1,000,000 for each additional 
41.24 	governmental unit participating up to a maximum of $8,000,000 or $15,000 per existing 
41.25 	connection, whichever is less, but not to exceed the maximum grant level determined by 
41.26 	the USDA/RECD as needed to keep the project affordable.
41.27 	(b) For a governmental unit not receiving grant funding from the USDA/RECD, 
41.28 	the authority shall provide assistance in the form of a loan for the eligible project costs 
41.29 	plus the outstanding balance on any existing wastewater system debt that together exceed 
41.30 	five percent of the market value of properties in the project service area, less the amount of 
41.31 	any other grant funding received by the governmental unit for the project. A governmental 
41.32 	unit may not receive a loan under this paragraph for more than $4,000,000 or $15,000 per 
41.33 	existing connection, whichever is less, unless specifically approved by law. In the case of 
41.34 	a sanitary district or other multijurisdictional project, the authority may provide a loan 
41.35 	under this paragraph for up to an additional $1,000,000 for each additional municipality 
42.1 	participating up to a maximum of $8,000,000 or $15,000 per existing connection, 
42.2 	whichever is less, unless specifically approved by law. A loan under this paragraph must 
42.3 	bear no interest, must be repaid as provided in subdivision 7, and must only be provided in 
42.4 	conjunction with a loan from the clean water revolving fund under section 446A.07. 
42.5 	(c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental unit 
42.6 	receiving supplemental assistance under this section after January 1, 2002, if the authority 
42.7 	determines that the  governmental unit's construction and installation costs are significantly 
42.8 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
42.9 	limits that are more stringent than secondary treatment, the authority shall provide 
42.10 	assistance in the form of half grant and half loan. Assistance from the authority may not 
42.11 	be more than $25,000 per existing connection. Any additional grant amount received for 
42.12 	the same project must be used to reduce the amount of the governmental unit's loan from 
42.13 	the clean water ~~pollution control~~ revolving fund that exceeds five percent of the market 
42.14 	value of properties in the project service area.

42.15 	Sec. 3. Minnesota Statutes 2007 Supplement, section 446A.086, is amended to read:
42.16 	446A.086 STATE MAY GUARANTEE ~~COUNTY~~ GOVERNMENTAL UNIT
42.17 	BUILDING DEBT; REPAYMENT.
42.18 		Subdivision 1.Definitions. (a) As used in this section, the following terms have 
42.19 	the meanings given.
42.20 	(b) "Authority" means the Minnesota Public Facilities Authority.
42.21 	(c) "Commissioner" means the commissioner of finance.
42.22 	(d) "Debt obligation" means:
42.23 	(1) a general obligation bond issued by a county, a bond to which the general 
42.24 	obligation of a county is pledged under section 469.034, subdivision 2, or a bond payable 
42.25 	from a county lease obligation under section 641.24, to provide funds for the construction 
42.26 	of: 
42.27 	~~(1)~~ (i) jails;
42.28 	~~(2)~~ (ii) correctional facilities;
42.29 	~~(3)~~ (iii) law enforcement facilities;
42.30 	~~(4)~~ (iv) social services and human services facilities; 
42.31 	~~(5)~~ (v) solid waste facilities; or
42.32 	~~(6)~~ (vi) qualified housing development projects as defined in section 469.034, 
42.33 	subdivision 2; or
42.34 	(2) a general obligation bond issued by a governmental unit and acquired under the 
42.35 	credit enhanced bond program established under section 446A.087.
43.1 		Subd. 2.Application. (a) This section provides a state guarantee of the payment of 
43.2 	principal and interest on debt obligations if:
43.3 	(1) the obligations are issued after June 30, 2000;
43.4 	(2) application to the Public Facilities Authority is made before issuance; and
43.5 	(3) the obligations are covered by an agreement meeting the requirements of 
43.6 	subdivision 3.
43.7 	(b) Applications to be covered by the provisions of this section must be made in a 
43.8 	form and contain the information prescribed by the authority. Applications are subject to a 
43.9 	fee of $500 for ~~the first~~ each bond issue requested by the county ~~and $250 for each bond~~ 
43.10 	~~issue thereafter~~ or applicable fees under section 446A.087.
43.11 	(c) Application fees paid under this section must be deposited in a separate ~~county~~
43.12 	credit enhancement bond guarantee account in the general fund. Money in the ~~county~~
43.13 	credit enhancement bond guarantee account is appropriated to the authority for purposes 
43.14 	of administering this section.
43.15 	(d) Neither the authority nor the commissioner is required to promulgate 
43.16 	administrative rules under this section and the procedures and requirements established by 
43.17 	the authority or commissioner under this section are not subject to chapter 14.
43.18 		Subd. 3.Agreement. (a) For specified debt obligations ~~of a county~~ to be covered 
43.19 	by this section, the ~~county~~ governmental unit must enter an agreement with the authority 
43.20 	obligating the ~~county~~ governmental unit to be bound by this section.
43.21 	(b) This agreement must be in a form prescribed by the authority and contain any 
43.22 	provisions required by the authority, including, at least, an obligation to:
43.23 	(1) deposit with the paying agent three days before the date on which the payment is 
43.24 	due an amount sufficient to make that payment or ten days prior to the date a payment is 
43.25 	due on revenue bonds issued by the authority under section 446A.087;
43.26 	(2) notify the authority, if the ~~county~~ governmental unit will be unable to make all 
43.27 	or a portion of the payment; and
43.28 	(3) include a provision in the bond resolution and county's agreement with the paying 
43.29 	agent for the debt obligation that requires the paying agent to inform the commissioner if 
43.30 	it becomes aware of a default or potential default in the payment of principal or interest 
43.31 	on that issue or if, on the day two business days before the date a payment is due on that 
43.32 	issue, there are insufficient funds to make the payment on deposit with the paying agent.
43.33 	(c) Funds invested in a refunding escrow account established under section 475.67
43.34 	that are to become available to the paying agent on a principal or interest payment date are 
43.35 	deemed to be on deposit with the paying agent three business days before the payment date. 
44.1 	(d) The provisions of an agreement under this subdivision are binding as to an issue 
44.2 	as long as any debt obligation of the issue remains outstanding.
44.3 	(e) This section and the obligations of the state under this section are not a public debt 
44.4 	of the state under article XI, section 4, of the Minnesota Constitution, and the legislature 
44.5 	may, at any time, choose not to appropriate amounts under subdivision 4, paragraph (b).
44.6 		Subd. 4.Notifications; payment; appropriation. (a) After receipt of a notice of a 
44.7 	default or potential default in payment of principal or interest in debt obligations covered 
44.8 	by this section or an agreement under this section, and after consultation with the ~~county,~~
44.9 	governmental unit and the paying agent, and after verification of the accuracy of the 
44.10 	information provided, the authority shall notify the commissioner of the potential default. 
44.11 	The notice must include a final figure as to the amount due that the ~~county~~ governmental 
44.12 	unit will be unable to repay on the date due.
44.13 	(b) Upon receipt of this notice from the authority, the commissioner shall issue a 
44.14 	warrant and authorize the authority to pay to the bond holders or paying agent for the 
44.15 	debt obligation the specified amount on or before the date due. The amounts needed 
44.16 	for the purposes of this subdivision are annually appropriated to the authority from the 
44.17 	general fund.
44.18 		Subd. 5.Interest on state paid amount. If the state has paid part or all of the 
44.19 	principal or interest due on a ~~county's~~ debt obligation, the amount paid bears interest 
44.20 	from the date paid by the state until the date of repayment. The interest rate is the 
44.21 	commissioner's invested cash rate as it is certified by the commissioner. Interest only 
44.22 	accrues on the amounts paid and outstanding less the reduction in aid under subdivision 7 
44.23 	and other payments received from the ~~county~~ governmental unit.
44.24 		Subd. 6.Pledge of ~~county's~~ governmental unit's full faith and credit. If the 
44.25 	state has paid part or all of the principal or interest due on a ~~county's~~ debt obligation, 
44.26 	the ~~county's~~ governmental unit's pledge of its full faith and credit and unlimited taxing 
44.27 	powers to repay the principal and interest due on those debt obligations becomes, without 
44.28 	an election or the requirement of a further authorization, a pledge of the full faith and 
44.29 	credit and unlimited taxing powers of the ~~county~~ governmental unit to repay to the state 
44.30 	the amount paid, with interest. Amounts paid by the state must be repaid in the order 
44.31 	in which the state payments were made.
44.32 		Subd. 7.Aid reduction for repayment. (a) Except as provided in paragraph (b), 
44.33 	the commissioner may reduce, by the amount paid by the state under this section on behalf 
44.34 	of the ~~county~~ governmental unit, plus the interest due on the state payments, the ~~county~~ 
44.35 	~~program~~ local government aid under ~~section 477A.0124~~ chapter 477A. The amount of any 
44.36 	aid reduction reverts from the appropriate account to the state general fund.
45.1 	(b) If, after review of the financial situation of the ~~county~~ governmental unit, the 
45.2 	authority advises the commissioner that a total reduction of the aids would cause an 
45.3 	undue hardship on the ~~county~~ governmental unit, the authority, with the approval of the 
45.4 	commissioner, may establish a different schedule for reduction of aids to repay the state. 
45.5 	The amount of aids to be reduced are decreased by any amounts repaid to the state by the 
45.6 	~~county~~ governmental unit from other revenue sources.
45.7 		Subd. 8.Tax levy for repayment. (a) With the approval of the authority, a ~~county~~
45.8 	governmental unit may levy in the year the state makes a payment under this section an 
45.9 	amount up to the amount necessary to provide funds for the repayment of the amount 
45.10 	paid by the state plus interest through the date of estimated repayment by the ~~county~~
45.11 	governmental unit. The proceeds of this levy may be used only for this purpose unless 
45.12 	they exceed the amount actually due. Any excess must be used to repay other state 
45.13 	payments made under this section or must be deposited in the debt redemption fund of 
45.14 	the ~~county~~ governmental unit. The amount of aids to be reduced to repay the state are 
45.15 	decreased by the amount levied.
45.16 	(b) If the state is not repaid in full for a payment made under this section by 
45.17 	November 30 of the calendar year following the year in which the state makes the 
45.18 	payment, the authority shall require the ~~county~~ governmental unit to certify a property 
45.19 	tax levy in an amount up to the amount necessary to provide funds for repayment of the 
45.20 	amount paid by the state plus interest through the date of estimated repayment by the 
45.21 	~~county~~ governmental unit. To prevent undue hardship, the authority may allow the ~~county~~
45.22 	governmental unit to certify the levy over a five-year period. The proceeds of the levy 
45.23 	may be used only for this purpose unless they are in excess of the amount actually due, in 
45.24 	which case the excess must be used to repay other state payments made under this section 
45.25 	or must be deposited in the debt redemption fund of the ~~county~~ governmental unit. If the 
45.26 	authority orders the ~~county~~ governmental unit to levy, the amount of aids reduced to repay 
45.27 	the state are decreased by the amount levied.
45.28 	(c) A levy under this subdivision is an increase in the levy limits of the ~~county~~
45.29 	governmental unit for purposes of section 275.065, subdivision 6, and must be explained 
45.30 	as a specific increase at the meeting required under that provision. 
45.31 		Subd. 9.Mandatory plan; technical assistance. If the state makes payments on 
45.32 	behalf of a ~~county~~ governmental unit under this section or the ~~county~~ governmental unit
45.33 	defaults in the payment of principal or interest on an outstanding debt obligation, it must 
45.34 	submit a plan to the authority for approval specifying the measures it intends to implement 
45.35 	to resolve the issues which led to its inability to make the payment and to prevent 
45.36 	further defaults. If the authority determines that a ~~county's~~ governmental unit's plan is 
46.1 	not adequate, the authority shall notify the ~~county~~ governmental unit that the plan has 
46.2 	been disapproved, the reasons for the disapproval, and that the state will not make future 
46.3 	payments under this section for debt obligations of the affected ~~county~~ governmental unit
46.4 	issued after the date specified in that notice until its plan is approved. The authority may 
46.5 	also notify the ~~county~~ governmental unit that until its plan is approved, aids due the ~~county~~
46.6 	governmental unit will be withheld after a date specified in the notice.
46.7 		Subd. 10.Continuing disclosure agreements. The authority may enter into written 
46.8 	agreements or contracts relating to the continuing disclosure of information needed to 
46.9 	facilitate the ability of ~~counties~~ governmental units to issue debt obligations according 
46.10 	to federal securities laws, rules, and regulations, including securities and exchange 
46.11 	commission rules and regulations, section 240.15c2-12. The agreements or contracts may 
46.12 	be in any form the authority deems reasonable and in the state's best interests.

46.13 	Sec. 4. [446A.087] CREDIT ENHANCED BOND PROGRAM.
46.14 		Subdivision 1.Establishment of program. A credit enhanced bond program is 
46.15 	established for the purposes set forth in subdivision 2.
46.16 		Subd. 2.Purpose. The purpose of the credit enhanced bond program is to 
46.17 	provide loans to governmental units through the purchase of general obligation bonds 
46.18 	of governmental units issued to finance all or a portion of the costs of a project. The 
46.19 	program shall include providing credit enhancement to the general obligation bonds of the 
46.20 	governmental unit through the guarantee program as provided in section 446A.086. The 
46.21 	authority shall obtain funds to make the loans authorized pursuant to this section through 
46.22 	the issuance of its revenue bonds payable from loan repayments pledged to the bonds, and 
46.23 	such other sources and security as are specifically pledged by the authority.
46.24 		Subd. 3.Definitions. (a) Terms used in this section have the meanings given to 
46.25 	them in this subdivision.
46.26 	(b) "Applicant" means any governmental unit applying to the authority for a loan 
46.27 	pursuant to this section.
46.28 	(c) "Borrower" means any governmental unit that has entered into a commitment 
46.29 	for the sale of its general obligation bonds to the authority pursuant to this section and 
46.30 	subsequently sells its general obligation bonds to the authority and enters into a regulatory 
46.31 	agreement.
46.32 	(d) "Commitment" means a written agreement between a governmental unit and the 
46.33 	authority obligating the governmental unit to deliver its general obligation bonds to the 
46.34 	authority on a date in the future evidencing a loan pursuant to this section and to enter 
47.1 	into a regulatory agreement with the authority, all upon the terms and conditions set 
47.2 	forth in the commitment.
47.3 	(e) "Eligible cost" means any cost of a project authorized by law to be financed from 
47.4 	the proceeds of general obligation bonds of a governmental unit.
47.5 	(f) "General obligation bonds" means bonds or notes secured by the full faith and 
47.6 	credit and unlimited taxing powers of a governmental unit.
47.7 	(g) "Project" means the construction, improvement, or rehabilitation of:
47.8 	(1) wastewater facilities;
47.9 	(2) drinking water facilities;
47.10 	(3) storm water facilities;
47.11 	(4) streets, street lighting, curbs, gutters, and sidewalks;
47.12 	(5) energy conservation or alternative energy sources for use in public buildings or 
47.13 	facilities;
47.14 	(6) telecommunications facilities;
47.15 	(7) public safety buildings including those providing police and fire protection; or
47.16 	(8) any publicly owned building or infrastructure improvement that has received 
47.17 	partial funding from grants awarded by the commissioner of employment and economic 
47.18 	development related to redevelopment, contaminated site cleanup, bioscience, small cities 
47.19 	development programs, and rural business infrastructure programs.
47.20 	(h) "Regulatory agreement" means a written agreement entered into by the authority 
47.21 	and a borrower in connection with the purchase of the borrower's general obligation bonds 
47.22 	by the authority pursuant to this section.
47.23 		Subd. 4.Establishment of fund and accounts. A credit enhancement bond 
47.24 	program fund is established for the purposes described in subdivision 2. Other accounts 
47.25 	may be established in the fund as necessary for its management and administration. 
47.26 	Money in the fund is annually appropriated to the authority and does not lapse. The fund 
47.27 	must be credited with investment income, and with repayments of principal and interest, 
47.28 	except for fees assessed under section 446A.04, subdivisions 5 and 15.
47.29 		Subd. 5.Management of fund and accounts. The authority shall manage and 
47.30 	administer the credit enhancement bond program fund and individual accounts in the fund. 
47.31 	For those purposes, the authority may exercise all powers provided in this chapter.
47.32 		Subd. 6.Applications. (a) Applicants for participation in the credit enhancement 
47.33 	bond program must submit an application to the authority on forms prescribed by the 
47.34 	authority. The applicant shall provide information customary to that needed for the 
47.35 	disclosure purposes in issuing general obligation bonds in the market, in addition to the 
47.36 	following information:
48.1 	(1) the total estimated cost of the project and the amount of general obligation 
48.2 	bond proceeds sought;
48.3 	(2) other sources of funding if the general obligation bond proceeds do not cover 
48.4 	the entire costs identified;
48.5 	(3) the proposed sources of funds to be used for repayment of the general obligation 
48.6 	bonds;
48.7 	(4) information showing the applicant's financial status and ability of the applicant 
48.8 	to repay loans;
48.9 	(5) the proposed term and principal repayment schedule for the general obligation 
48.10 	bonds of the applicant; and
48.11 	(6) the statutory authorization for the applicant to issue such general obligation 
48.12 	bonds, together with a statement that the statutory provision authorizes the use of proceeds 
48.13 	of such general obligation bonds to pay the costs of a project.
48.14 	(b) The authority may establish deadlines or time periods for the submission of 
48.15 	applications to facilitate funding loans from the proceeds of a specific bond issue proposed 
48.16 	or previously issued by the authority, or the authority may accept applications from time 
48.17 	to time.
48.18 	(c) Each application must be complete and accurate to be considered delivered to 
48.19 	and received by the authority or to be considered as having met any deadline established 
48.20 	by the authority with respect to an application period. If any application is determined by 
48.21 	the authority to be incomplete or inaccurate, the authority shall notify the applicant and 
48.22 	specify the missing or inaccurate information.
48.23 	(d) The executive director and the staff of the authority shall evaluate the applications 
48.24 	to determine if the application should be accepted or rejected by the authority.
48.25 	(e) The authority is not obligated to accept any application including those complete 
48.26 	and accurate and submitted by any specified deadline for submission if the authority 
48.27 	determines that it is not practicable to fund the loan for any reason including, but not 
48.28 	limited to, the creditworthiness of the applicant, the proposed loan amount, the term 
48.29 	and repayment schedule, the sources of funding available to the authority, and current 
48.30 	market conditions. Upon acceptance and approval of an application by the authority, the 
48.31 	authority may require that the applicant authorize, execute, and deliver a commitment to 
48.32 	the authority within such time period specified by the authority in its acceptance of the 
48.33 	application. The authority may reject an approved application for failure by the applicant 
48.34 	to authorize, execute, and deliver a commitment by the specified deadline.
48.35 		Subd. 7.Loan terms and conditions. (a) The terms and conditions of loans 
48.36 	provided by the authority pursuant to the credit enhanced bond program are as provided 
49.1 	by this section, any applicable bond resolution or series bond resolution of the authority, 
49.2 	any trust indenture pursuant to which any series of bonds of the authority are issued, 
49.3 	the regulatory agreement, the commitment and the general obligation bond, and the 
49.4 	authorizing resolution of the borrower.
49.5 	(b) The loan must be made by the authority through its purchase of the general 
49.6 	obligation bond of the borrower. The borrower shall provide the authority with the 
49.7 	opinion of nationally recognized bond counsel as to the valid authorization, issuance, and 
49.8 	enforceability of the general obligation bond of the borrower, and the exclusion of interest 
49.9 	thereon from gross income for the purposes of federal taxation, subject to customary 
49.10 	qualifications. The general obligation bond of the borrower may pledge other specified 
49.11 	sources of revenues for repayment to the extent permitted or required by law, in addition 
49.12 	to the full faith and credit and unlimited taxing powers of the borrower.
49.13 	(c) The authority may disburse the proceeds of the loan as a single payment for the 
49.14 	general obligation bond or from time to time pursuant to draw requests if the general 
49.15 	obligation bond of the borrower is structured as a periodic drawdown bond. In the event 
49.16 	the authority pays for the general obligation bond in a single payment, the borrower 
49.17 	shall establish a project account and disburse the proceeds of its general obligation bond 
49.18 	solely for costs of the project approved in its application pursuant to such additional 
49.19 	requirements specified in the regulatory agreement.
49.20 	(d) In order to facilitate the issuance of the authority's revenue bonds to finance 
49.21 	a pool of loans to different borrowers, the authority may require the borrower in the 
49.22 	commitment to issue its general obligation bond on a date certain in the future, and 
49.23 	may require the borrower to pay the costs incurred by the authority as a result of the 
49.24 	borrower's failure to deliver its general obligation bond as required by the commitment. 
49.25 	The commitment may also require the borrower to provide to the authority full disclosure 
49.26 	of all material facts and financial information relating to the borrower that would be 
49.27 	required if the borrower issued its general obligation bond to the public, certified as to 
49.28 	completeness and accuracy by authorized officers of the borrower, and authorization for 
49.29 	the authority to use such information in connection with the sale of the authority's revenue 
49.30 	bonds or disclosure relating to the authority's revenue bonds.
49.31 	(e) In addition to delivering its general obligation bond, each borrower shall enter 
49.32 	into a regulatory agreement with the authority providing additional terms of the loan 
49.33 	as the authority may specify, including providing to the authority periodic reports and 
49.34 	information relating to the acquisition or construction of the project and use of the 
49.35 	proceeds of the borrower's general obligation bond and periodic operating, financial, and 
50.1 	other information as to the creditworthiness of the borrower, and providing and filing 
50.2 	continuing secondary market disclosure to the extent required by the authority.
50.3 	(f) The purchase or commitment to purchase general obligation bonds of borrowers 
50.4 	by the authority shall be subject to the availability of proceeds of revenue bonds of the 
50.5 	authority for such purpose and the authority is not liable to any borrower for the failure to 
50.6 	purchase its general obligation bond pursuant to a commitment or any other agreement if 
50.7 	proceeds of the authority's revenue bonds are not available for any reason.
50.8 		Subd. 8.Interest rate determination. The rate of interest on the general obligation 
50.9 	bonds of the borrower must be the true interest cost on the revenue bonds of the authority 
50.10 	issued to purchase such general obligation bonds of the borrower plus the ongoing 
50.11 	percentage fee charged by the authority under subdivision 10; provided that the interest 
50.12 	rate must not exceed any limit imposed by federal tax law with respect to the authority's 
50.13 	revenue bonds.
50.14 		Subd. 9.Market considerations. The authority may suspend offering loans if it is 
50.15 	determined by the executive director that there are extreme or unusual events impacting 
50.16 	the bond market and that to continue making loans would be detrimental to holders of the 
50.17 	authority's revenue bonds or the financial viability of the credit enhanced bond program, 
50.18 	or if the state is warned by one of its rating agencies that continuing to make loans will 
50.19 	result in lowering the state's bond rating. If the making of loans is suspended under this 
50.20 	section, the authority shall have the option to resume making loans once it has determined 
50.21 	that the conditions for suspending the program no longer exist.
50.22 		Subd. 10.Fees. The authority shall charge a nonrefundable application fee of 
50.23 	$1,000 payable by each applicant upon submission of an application to the authority. A 
50.24 	separate application fee must be payable for each application submitted, including a 
50.25 	resubmitted application for an application that was rejected by the authority or determined 
50.26 	to be incomplete or inaccurate by the authority. The authority shall charge an ongoing 
50.27 	periodic fee of ten basis points of the outstanding principal amount of the loan to be added 
50.28 	to, and be a component of, the interest rate on the general obligation bonds of the borrower.
50.29 		Subd. 11.Authority revenue bonds. (a) The authority is authorized to issue 
50.30 	revenue bonds as provided in this chapter to fund the credit enhanced bond program. 
50.31 	The revenue bonds may be issued in one or more series pursuant to a resolution of the 
50.32 	authority or a series resolution or pursuant to a trust indenture with a financial institution 
50.33 	with trust powers as trustee, authorized by resolution of the authority. Any issue of bonds 
50.34 	may be used to fund one or more loans, may be payable by the loans funded from such 
50.35 	issue of bonds and such additional loans as pledged by the authority, and may be payable 
50.36 	on a subordinated basis to other bonds. As permitted by the terms of any revenue bonds 
51.1 	issued by the authority, the authority may sell the general obligations pledged to the 
51.2 	payment of the revenue bonds and any proceeds of the sale in excess of those used to pay 
51.3 	the principal of the revenue bonds must be deposited to the credit enhanced bond program 
51.4 	fund and may be used to purchase additional general obligation bonds of borrowers, to 
51.5 	provide credit enhancement for the authority's revenue bonds, or to pay any other expense 
51.6 	of the credit enhanced bond program.
51.7 	(b) The authority may issue short-term bonds in anticipation of issuing long-term 
51.8 	bonds for the purpose of acquiring general obligation bonds of borrowers.
51.9 	(c) Bonds issued by the authority for the credit enhanced bond program must not 
51.10 	be general obligations of the authority to the payment of which the general assets of the 
51.11 	authority are pledged or available for payment. All bonds issued for the credit enhanced 
51.12 	bond programs by the authority must be revenue bonds payable solely from the sources 
51.13 	specified in the bond.
51.14 		Subd. 12.Reports, disclosure, audits. (a) During the term of the loan the borrower 
51.15 	shall provide written reports to the authority. The content and timing of these reports must 
51.16 	be as specified in the regulatory agreement.
51.17 	(b) During the term of the loan the borrower shall disclose to the authority any 
51.18 	material information or events adversely affecting the creditworthiness of the borrower 
51.19 	as specified in the regulatory agreement. If required by the authority in a regulatory 
51.20 	agreement, the borrower shall enter into a continuing disclosure undertaking to provide 
51.21 	disclosure to the market.
51.22 	(c) During the term of the loan, the borrower shall provide to the authority on an 
51.23 	annual basis financial statements of the borrower audited by an independent accounting 
51.24 	firm, as further specified in the regulatory agreement.

51.25 	Sec. 5. Minnesota Statutes 2006, section 446A.12, subdivision 1, is amended to read:
51.26 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
51.27 	principal amount that the authority determines necessary to provide sufficient funds for 
51.28 	achieving its purposes, including the making of loans and purchase of securities, the 
51.29 	payment of interest on bonds of the authority, the establishment of reserves to secure 
51.30 	its bonds, the payment of fees to a third party providing credit enhancement, and the 
51.31 	payment of all other expenditures of the authority incident to and necessary or convenient 
51.32 	to carry out its corporate purposes and powers, but not including the making of grants. 
51.33 	Bonds of the authority may be issued as bonds or notes or in any other form authorized 
51.34 	by law. The principal amount of bonds issued and outstanding under this section at any 
51.35 	time may not exceed $1,500,000,000, excluding bonds for which refunding bonds or 
52.1 	crossover refunding bonds have been issued~~.~~, and excluding any bonds issued for the 
52.2 	credit enhanced bond program or refunding or crossover refunding bonds issued under the 
52.3 	program. The principal amount of bonds issued and outstanding under section 446A.087, 
52.4 	may not exceed $500,000,000, excluding bonds for which refunding bonds or crossover 
52.5 	refunding bonds have been issued.