1.1.................... moves to amend H.F. No. 2229, the delete everything amendment
1.2(A09-0305), as follows:
1.3Page 7, after line 25, insert:

1.4    "Sec. 18. Minnesota Statutes 2008, section 129D.13, is amended to read:
1.5129D.13 GRANTS.
1.6    Subdivision 1. Distribution. The commissioner shall distribute the money provided
1.7by sections 129D.11 to 129D.13. Twice Annually the commissioner shall make block
1.8grants which shall be distributed in equal amounts to public stations for operational costs.
1.9The commissioner shall allocate money appropriated for the purposes of sections 129D.11
1.10to 129D.13 in such a manner that each eligible public station receives a block grant. In
1.11addition, the commissioner shall make matching grants to public stations. Matching grants
1.12shall be used for operational costs and shall be allocated using the procedure developed
1.13for distribution of state money under this section for grants made in fiscal year 1979. No
1.14station's matching grant in any fiscal year shall exceed the amount of Minnesota-based
1.15contributions received by that station in the previous fiscal year. Grants made pursuant to
1.16this subdivision may only be given to those federally licensed stations that are certified as
1.17eligible for community service grants through the Corporation for Public Broadcasting.
1.18Grant funds not expended by a station during the first year of the biennium do not cancel
1.19and may be carried over into the second fiscal year.
1.20    Subd. 2. Exclusions from contribution amount. In calculating the amount of
1.21contributions received by a public station pursuant to subdivision 1, there shall be
1.22excluded: contributions, whether monetary or in kind, from the Corporation for Public
1.23Broadcasting; tax generated funds, including payments by public or private elementary
1.24and secondary schools; that portion of any foundation or corporation donation in excess
1.25of $500 $2,500 from any one contributor in a calendar the previous station fiscal year;
1.26contributions from any source if made for the purpose of capital expenditures; and
1.27contributions from all sources based outside the state.
2.1    Subd. 3. Report. Each educational station receiving a grant shall annually report
2.2by July 1 annually by August 1 to the commissioner the purposes for which the money
2.3was used in the past fiscal year and the anticipated use of the money in the next fiscal
2.4year. This report shall be submitted along with a new grant request submission. The report
2.5shall be certified by an independent auditor or a certified public accountant. If the report
2.6is not submitted by September 1, the commissioner may withhold from the educational
2.7station 45 percent of the amount to which it was entitled based upon the contribution of
2.8the previous fiscal year, and may redistribute that money to other educational stations.
2.9    Subd. 4. Program categories and funding programs. The Board of the Arts
2.10may develop program categories and funding programs in television, film and other
2.11public media.

2.12    Sec. 19. Minnesota Statutes 2008, section 129D.14, subdivision 4, is amended to read:
2.13    Subd. 4. Application. To be eligible for a grant under this section, a licensee
2.14shall submit an application to the commissioner within the deadline prescribed by the
2.15commissioner according to state grant policies. Each noncommercial radio station
2.16receiving a grant shall report annually within the deadline prescribed by August 1 to the
2.17commissioner the purposes for which the money was used in the past fiscal year and the
2.18anticipated use of the money for the next fiscal year. This report shall be submitted along
2.19with a new grant request submission. If the application and report are not submitted within
2.20the deadline prescribed by the commissioner, the grant may be redistributed to the other
2.21noncommercial radio stations eligible for a grant under this section.

2.22    Sec. 20. Minnesota Statutes 2008, section 129D.14, subdivision 5, is amended to read:
2.23    Subd. 5. State community service block grants. (a) The commissioner shall
2.24determine eligibility for block grants and the allocation of block grant money on the basis
2.25of audited financial records of the station to receive the block grant funds for the station's
2.26fiscal year preceding the year in which the grant is made, as well as on the basis of the
2.27other requirements set forth in this section. The commissioner shall annually distribute
2.28block grants equally to all stations that comply with the eligibility requirements and for
2.29which a licensee applies for a block grant. Grant funds not expended by a station during
2.30the first year of the biennium do not cancel and may be carried over into the second fiscal
2.31year. The commissioner may promulgate rules to implement this section.
2.32(b) A station may use grant money under this section for any radio station expenses.

2.33    Sec. 21. Minnesota Statutes 2008, section 129D.14, subdivision 6, is amended to read:
3.1    Subd. 6. Audit. A station that receives a grant under this section shall have an
3.2audit of its financial records made by an independent auditor or Corporation for Public
3.3Broadcasting accepted audit at the end of for the fiscal year for which it received the grant.
3.4The audit shall include a review of station promotion, operation, and management and an
3.5analysis of the station's use of the grant money. A copy of the most recent audit shall be
3.6filed with the commissioner. If neither is available, The commissioner may accept a letter
3.7of negative assurance from an independent auditor or a certified public accountant.

3.8    Sec. 22. Minnesota Statutes 2008, section 129D.155, is amended to read:
3.9129D.155 REPAYMENT OF FUNDS.
3.10State funds distributed to public television or noncommercial radio stations and used
3.11to purchase equipment assets must be repaid to the state, without interest, if the assets
3.12purchased with these funds are sold within five years or otherwise converted to a person
3.13other than a nonprofit or municipal corporation. The amount due to the state shall be the
3.14net amount realized from the sale of the assets, but shall not exceed the amount of state
3.15funds advanced for the purchase of the asset. Public television and noncommercial radio
3.16stations receiving state funds must report biennially to the legislature on the location and
3.17usage of assets purchased with state funds."
3.18Page 8, after line 5, insert:

3.19    "Sec. 25. EFFECTIVE DATE.
3.20Sections 18 to 22 are effective the day following final enactment."
3.21Renumber the sections in sequence and correct the internal references
3.22Amend the title accordingly