1.1    .................... moves to amend H.F. No. 3722 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4HIGHER EDUCATION

1.5
Section 1. SUMMARY OF APPROPRIATIONS
1.6    The sums shown in the columns marked "Appropriations" are added to or, if shown
1.7in parentheses, subtracted from the appropriations in Laws 2007, chapter 144, article 1, to
1.8the agencies and for the purposes specified in this act. The appropriations are from the
1.9general fund, or another named fund, and are available for the fiscal years indicated for
1.10each purpose. The figures "2008" and "2009" used in this act mean that the addition to
1.11or subtraction from the appropriation listed under them is available for the fiscal year
1.12ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and
1.13reductions to appropriations for the fiscal year ending June 30, 2008, are effective the
1.14day following final enactment.
1.15    The amounts shown in this section summarize direct appropriations, by fund, made
1.16in this act.
1.17
2008
2009
Total
1.18
General
$
0
$
(19,456,000)
$
(19,456,000)
1.19
Total
$
0
$
(19,456,000)
$
(19,456,000)
1.20
APPROPRIATIONS
1.21
Available for the Year
1.22
Ending June 30
1.23
2008
2009

1.24
1.25
Sec. 2. MINNESOTA OFFICE OF HIGHER
EDUCATION
$
-0-
$
(7,111,000)
1.26$111,000 in the second year is an operating
1.27base reduction.
2.1$7,000,000 in the second year is a reduction
2.2to the Achieve scholarship program under
2.3Minnesota Statutes, section 136A.127.

2.4
2.5
2.6
Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
$
-0-
$
(6,173,000)
2.7Of this reduction, $5,000,000 is from the
2.8appropriations for technology.
2.9The reductions in this subdivision must not
2.10result in reductions to any of the campuses
2.11of the Minnesota State Colleges and
2.12Universities, must not reduce the technology
2.13expenditures or grants to the campuses, and
2.14must not increase any assessments to the
2.15campuses from the Office of the Chancellor.
2.16The Board of Trustees of the Minnesota State
2.17Colleges and Universities must reallocate
2.18$9,000,000 of state appropriations for fiscal
2.19year 2009 to reduce student tuition increases
2.20to two percent at state colleges and three
2.21percent at state universities.
2.22The system base is reduced by $8,664,000
2.23in fiscal year 2010 and $8,665,000 in fiscal
2.24year 2011.

2.25
2.26
Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
$
-0-
$
(6,172,000)
2.27The system base is reduced by $8,666,000
2.28in fiscal year 2010 and $8,665,000 in fiscal
2.29year 2011.

2.30    Sec. 5. [135A.27] EQUAL ACCESS TO INSTRUCTIONAL MATERIALS IN
2.31HIGHER EDUCATION.
2.32    Subdivision 1. Short title. This section may be cited as the "Equal Access to
2.33Instructional Materials in Higher Education Act."
3.1    Subd. 2. Purpose. The Equal Access to Instructional Materials in Higher Education
3.2Act provides instructional materials in an accessible format to blind and other eligible
3.3students as defined in this act at the same time as the corresponding printed instructional
3.4material is made available. The Equal Access to Instructional Materials in Higher
3.5Education Act benefits blind and other eligible students by:
3.6    (1) improving literacy;
3.7    (2) enhancing performance in higher education;
3.8    (3) improving employability; and
3.9    (4) reducing the cost of acquiring instructional materials in accessible formats,
3.10including Braille.
3.11    Subd. 3. Definitions. (a) The following terms have the meaning given to them
3.12for the purposes of this section.
3.13    (b) "Accessible format" means one of several alternatives to traditional print,
3.14including Braille, audio recordings, large print, and computer text files.
3.15    (c) "Braille" means the tactile system of reading and writing used by persons who
3.16are blind, as defined by the Braille Authority of North America.
3.17    (d) "Educational institution" means all public and private postsecondary educational
3.18institutions in Minnesota.
3.19    (e) "Eligible student" means a person who is accepted by, enrolled at, or attending
3.20an educational institution and who is also eligible to receive services from the National
3.21Library Service for the Blind and Physically Handicapped of the Library of Congress.
3.22    (f) "Instructional materials" means commercially produced textbooks and other
3.23materials that are required in a course of study, including computerized, electronic, or
3.24Internet-based course materials.
3.25    (g) "Publisher" means a publishing house, firm or business that publishes, sells or
3.26contracts for the sale of course materials to an educational institution.
3.27    (h) "Structural integrity" means the entire contents of the printed instructional
3.28materials, including the text of the material, sidebars, table of contents, chapter headings
3.29and subheadings, footnotes, captions, indexes, glossaries, bibliographies, pictures,
3.30illustrations, graphs, and charts, organized in a manner consistent with the original printed
3.31instructional materials.
3.32    (i) "Textbook" means a book, a system of instructional materials, or a combination
3.33of a book and supplementary instructional material that conveys information to the student
3.34or otherwise contributes to the learning process, including electronic textbooks.
3.35    Subd. 4. Instructional materials. (a) A publisher that prints instructional materials
3.36for eligible students attending educational institutions must provide:
4.1    (1) an electronic file of printed instructional materials in a computer or electronic
4.2file that can be easily converted to the accessible format of the student's choice to the
4.3educational institution's designated coordinator, upon request of the eligible student; or
4.4    (2) an accessible copy of the electronic file of the instructional materials directly
4.5to the eligible student in a format of the student's choice.
4.6    (b) The format used by the publisher must include any nationally recognized or
4.7generally accepted standard for conversion of files to Braille, such as DAISY 3.0.
4.8    (c) If no nationally recognized or generally accepted standard is appropriate,
4.9publishers must provide the file in another mutually agreed upon computer or electronic
4.10format, such as Microsoft Word or LaTex.
4.11    (d) The computer or electronic version of the printed instructional materials supplied
4.12by the publisher must:
4.13    (1) comply with any applicable federal standard;
4.14    (2) otherwise maintain the structural integrity of the printed instructional materials;
4.15    (3) include copies of all pictures, illustrations, graphs, and charts, organized in a
4.16manner consistent with the original printed instructional materials; and
4.17    (4) include corrections and revisions as necessary.
4.18    (e) The publisher must provide the computer or electronic version of the printed
4.19instructional materials to the eligible student or educational institution at no additional cost
4.20and within ten business days after receipt of a written request that does all of the following:
4.21    (1) certifies that the eligible student has purchased the printed instructional materials;
4.22    (2) certifies that the student is an eligible student as defined in subdivision 3; and
4.23    (3) certifies that the printed instructional materials are for use by the eligible student
4.24in connection with a course at the educational institution.
4.25    (f) A publisher may require that the request include a statement signed by the eligible
4.26student agreeing that the eligible student will not copy, publish, or in any other way
4.27distribute the accessible version of the printed instructional materials to any other person.
4.28    (g) A publisher who manufactures instructional materials using any type of video or
4.29audio format, CD ROM, or other digital format for eligible students attending educational
4.30institutions shall, upon request, provide an accessible version of the instructional materials,
4.31subject to the same conditions and limitations for printed instructional materials.
4.32    (h) Nothing in this act shall be deemed to authorize any use of instructional
4.33materials that would constitute an infringement of copyright pursuant to applicable federal
4.34copyright law.
4.35    Subd. 5. Private right of action. An eligible student who contends that a publisher
4.36has been a violation of the Equal Access to Instructional Materials in Higher Education
5.1Act has the right to pursue a private right of action in a court of competent jurisdiction.
5.2If the eligible student should prevail in a lawsuit, the eligible student shall be entitled to
5.3injunctive and monetary relief and attorney fees and costs incurred in the litigation.

5.4    Sec. 6. Minnesota Statutes 2006, section 136A.101, subdivision 8, is amended to read:
5.5    Subd. 8. Resident student. "Resident student" means a student who meets one of
5.6the following conditions:
5.7    (1) a student who has resided in Minnesota for purposes other than postsecondary
5.8education for at least 12 months without being enrolled at a postsecondary educational
5.9institution for more than five credits in any term;
5.10    (2) a dependent student whose parent or legal guardian resides in Minnesota at the
5.11time the student applies;
5.12    (3) a student who graduated from a Minnesota high school, if the student was a
5.13resident of Minnesota during the student's period of attendance at the Minnesota high
5.14school and the student is physically attending a Minnesota postsecondary educational
5.15institution;
5.16    (4) a student who, after residing in the state for a minimum of one year, earned a
5.17high school equivalency certificate in Minnesota;
5.18    (5) a member, spouse, or dependent of a member of the armed forces of the United
5.19States stationed in Minnesota on active federal military service as defined in section
5.20190.05 , subdivision 5c;
5.21    (6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran
5.22is a Minnesota resident;
5.23    (7) a person or spouse of a person who relocated to Minnesota from an area that
5.24is declared a presidential disaster area within the preceding 12 months if the disaster
5.25interrupted the person's postsecondary education; or
5.26    (7) (8) a person defined as a refugee under United States Code, title 8, section
5.271101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
5.28continued to reside in Minnesota.

5.29    Sec. 7. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
5.30    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
5.31responsibility for covering the recognized cost of attendance by the applicant, the
5.32applicant's family, and the government. The amount of a financial stipend must not
5.33exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
5.34deducting the following:
6.1    (1) the assigned student responsibility of at least 46 44.5 percent of the cost of
6.2attending the institution of the applicant's choosing;
6.3    (2) the assigned family responsibility as defined in section 136A.101; and
6.4    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.
6.5    The minimum financial stipend is $100 per academic year.

6.6    Sec. 8. Minnesota Statutes 2007 Supplement, section 136A.121, subdivision 7a,
6.7is amended to read:
6.8    Subd. 7a. Surplus appropriation. If the amount appropriated is determined by the
6.9office to be more than sufficient to fund projected grant demand in the second year of the
6.10biennium, the office may increase the living and miscellaneous expense allowance in the
6.11second year of the biennium by up to an amount that retains sufficient appropriations
6.12to fund the projected grant demand. The adjustment may be made one or more times.
6.13In making the determination that there are more than sufficient funds, the office shall
6.14balance the need for sufficient resources to meet the projected demand for grants with the
6.15goal of fully allocating the appropriation for state grants. An increase in the living and
6.16miscellaneous expense allowance under this subdivision does not carry forward into a
6.17subsequent biennium. This subdivision expires June 30, 2009.

6.18    Sec. 9. Minnesota Statutes 2007 Supplement, section 136A.126, is amended to read:
6.19136A.126 INDIAN SCHOLARSHIPS.
6.20    Subdivision 1. Student eligibility. The director of the Office of Higher Education
6.21shall establish procedures for the distribution of scholarships to any a Minnesota resident
6.22student who:
6.23     (1) is of one-fourth or more Indian ancestry, who;
6.24     (2) has applied for other existing state and federal scholarship and grant programs,
6.25and who,;
6.26    (3) if enrolled in an undergraduate program, is eligible or would be eligible to
6.27receive a federal Pell Grant or a state grant based on the federal needs analysis;
6.28    (4) is an undergraduate enrolled for nine semester credits per term or more, or the
6.29equivalent, or a graduate student enrolled on a half-time basis or more according to the
6.30postsecondary institution; and
6.31     (5) in the opinion of the director of the Office of Higher Education, based upon
6.32postsecondary institution recommendations, has the capabilities to benefit from further
6.33education.
7.1    Subd. 2. Eligible programs. Scholarships must be for accredited degree programs
7.2in accredited Minnesota colleges or universities or for courses in accredited Minnesota
7.3business, technical, or vocational schools. Scholarships may also be given to students
7.4attending Minnesota colleges that are in candidacy status for obtaining full accreditation,
7.5and are eligible for and receiving federal financial aid programs. Students are also eligible
7.6for scholarships when enrolled as students in Minnesota higher education institutions that
7.7have joint programs with other accredited higher education institutions. Scholarships shall
7.8be used to defray the total cost of education including tuition, incidental fees, books,
7.9supplies, transportation, other related school costs and the cost of board and room and
7.10shall be paid directly to the college or school concerned where the student receives federal
7.11financial aid.
7.12    Subd. 3. Cost of attendance. The total cost of education includes all attendance
7.13shall include tuition and required fees for each student enrolling in a public institution
7.14and the portion of tuition and fees for each student enrolling in a private institution that
7.15does not exceed the tuition and fees at a comparable public institution. Each student shall
7.16be awarded a scholarship based on a federal standardized need analysis. Applicants are
7.17encouraged to apply for all other sources of financial aid charged by the institution and the
7.18campus-based budget used for federal financial aid for food and shelter, books, supplies,
7.19transportation, and miscellaneous expenses.
7.20    When an Indian student satisfactorily completes the work required by a certain
7.21college or school in a school year the student is eligible for additional scholarships, if
7.22additional training is necessary to reach the student's educational and vocational objective.
7.23    Subd. 4. Award amount. (a) Each student shall be awarded a scholarship based
7.24on the federal need analysis. Applicants are encouraged to apply for all other sources of
7.25financial aid. The amount of the award must not exceed the applicant's cost of attendance,
7.26as defined in subdivision 3, after deducting:
7.27    (1) the expected family contribution as calculated by the federal need analysis;
7.28    (2) the amount of a federal Pell Grant award for which the applicant is eligible;
7.29    (3) the amount of the state grant;
7.30    (4) the sum of all federal Supplemental Educational Opportunity Grant, federal
7.31Academic Competitiveness Grant, and federal Science and Mathematics Access to Retain
7.32Talent Grant (SMART Grant) awards;
7.33    (5) the sum of all institutional grants, scholarships, tuition waivers, and tuition
7.34remission amounts;
7.35    (6) the sum of all tribal scholarships;
7.36    (7) the amount of any other state and federal gift aid; and
8.1    (8) the amount of any private grants or scholarships.
8.2    (b) The award shall be paid directly to the postsecondary institution where the
8.3student receives federal financial aid.
8.4    (c) Awards are limited as follows:
8.5    (1) the maximum award for an undergraduate is $4,000 per academic year;
8.6    (2) the maximum award for a graduate student is $6,000 per academic year; and
8.7    (3) the minimum award for all students is $100 per academic year.
8.8    (d) Scholarships may not be given to any Indian student for more than five three
8.9years of study for a two-year degree, certificate, or diploma program or five years of study
8.10for a four-year degree program at the undergraduate level and for more than five years
8.11at the graduate level. Students may acquire only one degree per level and one terminal
8.12graduate degree. Scholarships may not be given to any student for more than ten years
8.13including five years of undergraduate study and five years of graduate study.
8.14EFFECTIVE DATE.This section is effective the day following final enactment.

8.15    Sec. 10. Minnesota Statutes 2007 Supplement, section 136A.127, is amended to read:
8.16136A.127 ACHIEVE SCHOLARSHIP PROGRAM.
8.17    Subdivision 1. Establishment. The Achieve Scholarship Program is established
8.18to provide scholarships to eligible students within the limits of appropriations for the
8.19program.
8.20    Subd. 2. Definition; qualifying program. For the purposes of this section, a
8.21"qualifying program" means a rigorous secondary school program of study defined by
8.22the Department of Education under agreement with the Secretary of Education for the
8.23purposes of determining eligibility for the federal Academic Competitiveness Grant
8.24Program under Title IV of the Higher Education Act of 1965, as amended.
8.25    Subd. 3. Documentation of qualifying programs. The student shall request a
8.26transcript from the high school. The high school shall provide a transcript to the Office
8.27of Higher Education or to the eligible institution in which the student is enrolling,
8.28documenting the qualifying program. The student may be required to provide additional
8.29documentation such as:
8.30    (1) official postsecondary transcript; and
8.31    (2) official IB/AP test scores.
8.32    Subd. 4. Student eligibility. To be eligible to receive a scholarship under this
8.33section, in addition to the requirements listed under section 136A.121, a student must:
8.34    (1) submit a Free Application for Federal Student Aid (FAFSA);
9.1    (2) take and receive at least a grade of C for courses that comprise a rigorous
9.2secondary school program of study in a high school or in a home-school setting under
9.3section 120A.22, and graduate from a Minnesota high school;
9.4    (3) have a family adjusted gross income of less than $75,000 in the last complete
9.5calendar year prior to the academic year of postsecondary attendance of less than $75,000
9.6in which the scholarship is used;
9.7    (4) be a United States citizen or eligible noncitizen, as defined in section 484 of the
9.8Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, and
9.9Code of Federal Regulations, title 34, section 668.33; and
9.10    (5) be a Minnesota resident, as defined in section 136A.101, subdivision 8; and
9.11    (6) be enrolled for at least three credits per quarter or semester or the equivalent at
9.12an eligible institution as defined under section 136A.101, subdivision 4.
9.13    Subd. 5. Administration. The Achieve Scholarship Program shall be administered
9.14by the Minnesota Office of Higher Education. The director shall develop forms and
9.15procedures necessary to administer the program.
9.16    Subd. 6. Application. A student must complete and submit an application for
9.17the Achieve scholarship.
9.18    Subd. 7. Deadline. The deadline for the office to accept applications for Achieve
9.19scholarships is 30 days after the beginning of the academic term for which the application
9.20is submitted the same as that used for the state grant in section 136A.121, subdivision 13.
9.21    Subd. 8. Documentation of qualifying household income. Achieve Scholarship
9.22Program applicants must certify on the application that they meet the income eligibility
9.23requirement in subdivision 5 4, clause (2) (3). The Office of Higher Education or the
9.24postsecondary institution may request documentation needed to confirm income eligibility.
9.25    Subd. 9. Scholarship awards. Minnesota Achieve scholarships shall consist of
9.26$1,200 for a student who takes and receives at least a grade of C for courses required
9.27under a qualifying program. The scholarships may be used to pay for qualifying expenses
9.28at eligible institutions.
9.29    Subd. 10. Qualifying expenses. Qualifying expenses are components included
9.30under the cost of attendance used for federal student financial aid programs, as defined in
9.31section 472 of the Higher Education Act, United States Code, title 20, sections 1091 et
9.32seq., as amended.
9.33    Subd. 11. Eligible institutions. The Achieve scholarship may only be used to
9.34pay qualifying expenses at an eligible institution as defined under section 136A.101,
9.35subdivision 4.
10.1    Subd. 12. Availability of scholarship funds. A scholarship earned by a student
10.2is available for four years immediately following high school graduation. The office
10.3must certify to the commissioner of finance by October 1 of each year the amounts to be
10.4canceled from scholarship eligibility that have expired.
10.5    Subd. 13. Disbursement of scholarships. The office shall make two equal
10.6payments to a postsecondary institution on behalf of the student. The second payment
10.7must be made After the student successfully completes the first term of enrollment, the
10.8second payment must be made during the student's next term of enrollment at an eligible
10.9institution. If the second disbursement is not within the same academic year as the first
10.10disbursement, the student must request the second disbursement.
10.11    Subd. 14. Evaluation report. By January 15 of each odd-numbered year, the
10.12Office of Higher Education shall submit a report, to the committees of the legislature with
10.13jurisdiction over higher education finance and policy, regarding the success of the program
10.14in increasing the enrollment of students in rigorous high school courses, including, at a
10.15minimum, the following information:
10.16    (1) the demographics of individuals participating in the program;
10.17    (2) the grades scholarship recipients received for courses in the qualifying program
10.18under subdivision 2;
10.19    (3) the number of scholarship recipients who persisted at a postsecondary institution
10.20for a second year;
10.21    (4) the high schools attended by the program participants;
10.22    (5) the postsecondary institutions attended by the program participants;
10.23    (6) the academic performance of the students after enrolling in a postsecondary
10.24institution; and
10.25    (7) other information as identified by the director.
10.26EFFECTIVE DATE.This section is effective the day following final enactment
10.27and within the limits of appropriations applies to students who graduate from high school
10.28after January 1, 2008.

10.29    Sec. 11. Minnesota Statutes 2007 Supplement, section 136A.128, is amended by
10.30adding a subdivision to read:
10.31    Subd. 4. Administration. A nonprofit organization that receives a grant under this
10.32section may use five percent of the grant amount to administer the program.
10.33EFFECTIVE DATE.This section is effective the day following final enactment for
10.34grants under Minnesota Statutes, section 136A.128, beginning in fiscal year 2008.

11.1    Sec. 12. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 1, is
11.2amended to read:
11.3    Subdivision 1. Prohibition. No school subject to registration shall grant a degree
11.4unless such degree and its underlying curriculum are approved by the office, nor shall
11.5any school subject to registration use the name "college," "academy," "institute" or
11.6"university" in its name without approval by the office.

11.7    Sec. 13. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 3, is
11.8amended to read:
11.9    Subd. 3. Application. A school subject to registration shall be granted approval
11.10to use the term "college," "academy," "institute," or "university" in its name if it was
11.11organized, operating, and using such term in its name on or before August 1, 2007, and if
11.12it meets the other policies and standards for approval established by the office.

11.13    Sec. 14. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 5, is
11.14amended to read:
11.15    Subd. 5. Requirements for degree and nondegree program approval. For each
11.16degree and nondegree program a school offers to a student, where the student does not
11.17leave Minnesota for the major portion of the program or course leading to the degree or
11.18nondegree award, the school must have:
11.19    (1) for degree programs:
11.20    (i) qualified teaching personnel to provide the educational programs for each degree
11.21for which approval is sought;
11.22    (2) (ii) appropriate educational programs leading to each degree for which approval
11.23is sought;
11.24    (3) (iii) appropriate and accessible library, laboratory, and other physical facilities to
11.25support the educational program for each degree for which approval is sought; and
11.26    (4) (iv) a rationale showing that degree programs are consistent with the school's
11.27mission and goals.; and
11.28    (2) for nondegree programs:
11.29    (i) qualified teaching personnel to provide the educational programs for which
11.30approval is sought;
11.31    (ii) appropriate educational programs leading to each award for which approval
11.32is sought;
11.33    (iii) appropriate and accessible library, laboratory, and other physical facilities to
11.34support the educational program for which approval is sought; and
12.1    (iv) a rationale showing that programs are consistent with the school's mission
12.2and goals.
12.3    Nondegree programs that are a part of an approved degree shall not require
12.4additional review or approval; they shall be considered approved as a part of the degree
12.5approval. Any nondegree program offered by a degree-granting school that is not a part of
12.6an approved degree shall be subject to clause (2), items (i) to (iv).

12.7    Sec. 15. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 6, is
12.8amended to read:
12.9    Subd. 6. Name. A degree-granting school may use the term "academy" or "institute"
12.10in its name without meeting any additional requirements. A school may use the term
12.11"college" in its name if it offers at least one program leading to an associate degree. A
12.12school may use the term "university" in its name if it offers at least one program leading
12.13to a master's or doctorate degree.

12.14    Sec. 16. Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 7, is
12.15amended to read:
12.16    Subd. 7. Conditional approval. The office may grant conditional approval for a
12.17degree or use of a term in its name for a period of less than one year if doing so would be
12.18in the best interests of currently enrolled students or prospective students. New schools
12.19may be granted conditional approval for degrees or names annually for a period not to
12.20exceed five years to allow them the opportunity to apply for and receive accreditation as
12.21required in subdivision 1a.

12.22    Sec. 17. Minnesota Statutes 2007 Supplement, section 136A.66, is amended to read:
12.23136A.66 LIST.
12.24    The office shall maintain a list of registered institutions authorized to grant degrees
12.25and schools authorized to use the name "college," "academy," "institute" or "university,"
12.26and shall make such list available to the public.

12.27    Sec. 18. Minnesota Statutes 2007 Supplement, section 136A.67, is amended to read:
12.28136A.67 UNAUTHORIZED REPRESENTATIONS.
12.29    No school and none of its officials or employees shall advertise or represent in
12.30any manner that such school is approved or accredited by the office or the state of
12.31Minnesota, except a school which is duly registered with the office, or any of its officials
12.32or employees, may represent in advertising and shall disclose in catalogues, applications,
12.33and enrollment materials that the school is registered with the office by prominently
13.1displaying the following statement: "(Name of school) is registered as a private institution
13.2with the Minnesota Office of Higher Education pursuant to sections 136A.61 to 136A.71.
13.3Registration is not an endorsement of the institution. Credits earned at the institution
13.4may not transfer to all other institutions."

13.5    Sec. 19. Minnesota Statutes 2007 Supplement, section 136A.69, is amended to read:
13.6136A.69 FEES.
13.7    Subdivision 1. Registration fees. The office shall collect reasonable registration
13.8fees that are sufficient to recover, but do not exceed, its costs of administering the
13.9registration program. The office shall charge $1,100 for initial registration fees and $950
13.10for annual renewal fees.
13.11    Subd. 2. Degree level addition fee. The office processing fee for adding a degree
13.12level to an existing program is $2,000 per program degree.
13.13    Subd. 3. Degree or nondegree program addition fee. The office processing fee
13.14for adding a degree or nondegree program that represents a significant departure in the
13.15objectives, content, or method of delivery of degree or nondegree programs that are
13.16currently offered by the school is $500 per degree or nondegree program.
13.17    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
13.18or outside consultant is necessary to review or evaluate any new or revised degree or
13.19nondegree program, the office shall be reimbursed for the expenses incurred related to the
13.20review as follows:
13.21    (1) $300 for the team base fee or for a paper review conducted by a consultant if the
13.22office determines that a fact-finding visit is not required;
13.23    (2) $300 for each day or part thereof on site per team member; and
13.24    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
13.25by team members.
13.26    Subd. 5. Modification fee. The fee for modification of any existing degree or
13.27nondegree program is $100 and is due if there is:
13.28    (1) an increase or decrease of 25 percent or more from the original date of program
13.29approval, in clock hours, credit hours, or calendar length of an existing degree or
13.30nondegree program;
13.31    (2) a change in academic measurement from clock hours to credit hours or vice
13.32versa; or
13.33    (3) an addition or alteration of courses that represent a 25 percent change or more in
13.34the objectives, content, or methods of delivery.

14.1    Sec. 20. Minnesota Statutes 2007 Supplement, section 136F.02, subdivision 1, is
14.2amended to read:
14.3    Subdivision 1. Membership. The board consists of 15 members appointed
14.4according to this subdivision. Eleven members are appointed by the governor including
14.5three members who are students who have attended an institution for at least one year
14.6and are currently enrolled at least half time in a degree, diploma, or certificate program
14.7or have graduated from an institution governed by the board within one year of the date
14.8of appointment. The student members shall include: one member from a community
14.9college, one member from a state university, and one member from a technical college.
14.10The remaining four members are appointed by labor organizations. The Inter Faculty
14.11Organization (IFO), the Minnesota State College Faculty (MSCF), the Minnesota
14.12Association of Professional Employees (MAPE), and the American Federation of
14.13State, County and Municipal Employees (AFSCME) shall each appoint one member.
14.14Appointments by the governor and the labor organizations are made with the advice
14.15and consent of the senate. At least one member of the board must be a resident of each
14.16congressional district. The remaining members must be appointed to represent the state at
14.17large. In selecting appointees, the governor and each appointing authority must consider
14.18the needs of the board of trustees and the balance of the board membership with respect to
14.19labor and business representation and racial, gender, geographic, and ethnic composition.
14.20Three members must be students who are enrolled at least half time in a degree, diploma,
14.21or certificate program or have graduated from an institution governed by the board within
14.22one year of the date of appointment. The student members shall include: one member
14.23from a community college, one member from a state university, and one member from a
14.24technical college. The remaining members must be appointed to represent the state at large.

14.25    Sec. 21. Minnesota Statutes 2007 Supplement, section 136F.03, subdivision 4, is
14.26amended to read:
14.27    Subd. 4. Recommendations. Except for seats filled under section sections 136F.04
14.28and 136F.045, the advisory council shall recommend at least two and not more than four
14.29candidates for each seat. By April 15 of each even-numbered year in which the governor
14.30makes appointments to the board, the advisory council shall submit its recommendations
14.31to the governor. The governor is not bound by these recommendations.

14.32    Sec. 22. [136F.045] LABOR ORGANIZATION BOARD MEMBER SELECTION
14.33PROCESS.
14.34    The labor organizations under section 1 are responsible for recruiting, screening, and
14.35selecting qualified candidates for their appointments to the board. The organizations must
15.1develop a statement of selection criteria for board membership and a process for selecting
15.2candidates to meet the board needs and balance required under section 1.

15.3    Sec. 23. [136F.19] POWER OF YOU PROGRAM.
15.4    Subdivision 1. Establishment. The power of you program is established at
15.5Metropolitan State University, Minneapolis Community and Technical College, and St.
15.6Paul College to promote the preparation and enrollment of students in postsecondary
15.7education through partnerships with high schools and school districts.
15.8    Subd. 2. Allocations. (a) Minnesota State Colleges and Universities shall allocate
15.9the power of you funds at Metropolitan State University, Minneapolis Community and
15.10Technical College, and St. Paul College.
15.11    (b) The funds must be used to increase student financial aid to fill the gap between
15.12costs and federal and state grants to students who:
15.13    (1) graduate from a public Minneapolis or St. Paul high school;
15.14    (2) enroll full time immediately after graduation; and
15.15    (3) are participants in the power of you.

15.16    Sec. 24. Minnesota Statutes 2007 Supplement, section 141.25, subdivision 5, is
15.17amended to read:
15.18    Subd. 5. Bond. (a) No license shall be issued to any school which maintains,
15.19conducts, solicits for, or advertises within the state of Minnesota any program, unless the
15.20applicant files with the office a continuous corporate surety bond written by a company
15.21authorized to do business in Minnesota conditioned upon the faithful performance of all
15.22contracts and agreements with students made by the applicant.
15.23    (b)(1) The amount of the surety bond shall be ten percent of the preceding year's
15.24gross income from student tuition, fees, and other required institutional charges, but in
15.25no event less than $10,000 nor greater than $250,000, except that a school may deposit a
15.26greater amount at its own discretion. A school in each annual application for licensure
15.27must compute the amount of the surety bond and verify that the amount of the surety bond
15.28complies with this subdivision, unless the school maintains a surety bond equal to at least
15.29$250,000. A school that operates at two or more locations may combine gross income
15.30from student tuition, fees, and other required institutional charges for all locations for the
15.31purpose of determining the annual surety bond requirement. The gross tuition and fees
15.32used to determine the amount of the surety bond required for a school having a license for
15.33the sole purpose of recruiting students in Minnesota shall be only that paid to the school
15.34by the students recruited from Minnesota.
16.1    (2) A school required to obtain a private career school license due to the use of
16.2"academy," "institute," "college," or "university" in its name and which is also licensed by
16.3another state agency or board shall be required to provide a school bond of $10,000.
16.4    (c) The bond shall run to the state of Minnesota and to any person who may have a
16.5cause of action against the applicant arising at any time after the bond is filed and before it
16.6is canceled for breach of any contract or agreement made by the applicant with any student.
16.7The aggregate liability of the surety for all breaches of the conditions of the bond shall not
16.8exceed the principal sum deposited by the school under paragraph (b). The surety of any
16.9bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved
16.10of liability for any breach of condition occurring after the effective date of cancellation.
16.11    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a
16.12sum equal to the amount of the required surety bond in cash, or securities as may be
16.13legally purchased by savings banks or for trust funds in an aggregate market value equal
16.14to the amount of the required surety bond.
16.15    (e) Failure of a school to post and maintain the required surety bond or deposit under
16.16paragraph (d) shall result in denial, suspension, or revocation of the school's license.

16.17    Sec. 25. Minnesota Statutes 2006, section 141.25, is amended by adding a subdivision
16.18to read:
16.19    Subd. 13. Schools licensed by another state agency or board. A school required to
16.20obtain a private career school license due to the use of "academy," "institute," "college," or
16.21"university" in its name and which is also licensed by another state agency or board shall
16.22be required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7),
16.23and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12.

16.24    Sec. 26. Minnesota Statutes 2007 Supplement, section 141.28, subdivision 1, is
16.25amended to read:
16.26    Subdivision 1. Disclosure required; advertisement restricted. A Schools, agents
16.27of schools, and solicitors may not advertise or represent in writing or orally that such
16.28school is approved or accredited by the state of Minnesota, except that any school, agent,
16.29or solicitor may represent in advertisements and shall disclose in catalogues, applications,
16.30and enrollment materials that the school is duly licensed by the state by prominently
16.31displaying the following statement:
16.32"(Name of school) is licensed as a private career school with the Minnesota Office of
16.33Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. Licensure is
16.34not an endorsement of the institution. Credits earned at the institution may not transfer
16.35to all other institutions."

17.1    Sec. 27. Minnesota Statutes 2007 Supplement, section 141.35, is amended to read:
17.2141.35 EXEMPTIONS.
17.3    Sections 141.21 to 141.32 shall not apply to the following:
17.4    (1) public postsecondary institutions;
17.5    (2) postsecondary institutions registered under sections 136A.615 136A.61 to
17.6136A.71 ;
17.7    (3) schools of nursing accredited by the state Board of Nursing or an equivalent
17.8public board of another state or foreign country;
17.9    (4) private schools complying with the requirements of section 120A.22, subdivision
17.104
;
17.11    (5) courses taught to students in a valid apprenticeship program taught by or
17.12required by a trade union;
17.13    (6) schools exclusively engaged in training physically or mentally disabled persons
17.14for the state of Minnesota;
17.15    (7) schools licensed by boards authorized under Minnesota law to issue licenses
17.16except schools required to obtain a private career school license due to the use of
17.17"academy," "institute," "college," or "university" in their names;
17.18    (8) schools and educational programs, or training programs, contracted for by
17.19persons, firms, corporations, government agencies, or associations, for the training of their
17.20own employees, for which no fee is charged the employee;
17.21    (9) schools engaged exclusively in the teaching of purely avocational, recreational,
17.22or remedial subjects as determined by the office except schools required to obtain a private
17.23career school license due to the use of "academy," "institute," "college," or "university"
17.24in their names;
17.25    (10) classes, courses, or programs conducted by a bona fide trade, professional, or
17.26fraternal organization, solely for that organization's membership;
17.27    (11) programs in the fine arts provided by organizations exempt from taxation
17.28under section 290.05 and registered with the attorney general under chapter 309. For
17.29the purposes of this clause, "fine arts" means activities resulting in artistic creation or
17.30artistic performance of works of the imagination which are engaged in for the primary
17.31purpose of creative expression rather than commercial sale or employment. In making
17.32this determination the office may seek the advice and recommendation of the Minnesota
17.33Board of the Arts;
17.34    (12) classes, courses, or programs intended to fulfill the continuing education
17.35requirements for licensure or certification in a profession, that have been approved by
17.36a legislatively or judicially established board or agency responsible for regulating the
18.1practice of the profession, and that are offered exclusively to an individual practicing
18.2the profession;
18.3    (13) classes, courses, or programs intended to prepare students to sit for
18.4undergraduate, graduate, postgraduate, or occupational licensing and occupational
18.5entrance examinations;
18.6    (14) classes, courses, or programs providing 16 or fewer clock hours of instruction
18.7that are not part of the curriculum for an occupation or entry level employment except
18.8schools required to obtain a private career school license due to the use of "academy,"
18.9"institute," "college," or "university" in their names;
18.10    (15) classes, courses, or programs providing instruction in personal development,
18.11modeling, or acting;
18.12    (16) training or instructional programs, in which one instructor teaches an individual
18.13student, that are not part of the curriculum for an occupation or are not intended to prepare
18.14a person for entry level employment; and
18.15    (17) schools with no physical presence in Minnesota, as determined by the office,
18.16engaged exclusively in offering distance instruction that are located in and regulated
18.17by other states or jurisdictions.

18.18    Sec. 28. Minnesota Statutes 2006, section 144.1501, subdivision 2, is amended to read:
18.19    Subd. 2. Creation of account. (a) A health professional education loan forgiveness
18.20program account is established. The commissioner of health shall use money from the
18.21account to establish a loan forgiveness program:
18.22    (1) for medical residents agreeing to practice in designated rural areas or underserved
18.23urban communities or specializing in the area of pediatric psychiatry;
18.24    (2) for midlevel practitioners agreeing to practice in designated rural areas or to teach
18.25for at least 20 hours 12 credit hours, or 720 hours per week year in the nursing field in a
18.26postsecondary program at the undergraduate level or the equivalent at the graduate level;
18.27    (3) for nurses who agree to practice in a Minnesota nursing home or intermediate
18.28care facility for persons with developmental disability or to teach for at least 20 hours 12
18.29credit hours, or 720 hours per week year in the nursing field in a postsecondary program at
18.30the undergraduate level or the equivalent at the graduate level;
18.31    (4) for other health care technicians agreeing to teach for at least 20 hours 12 credit
18.32hours, or 720 hours per week year in their designated field in a postsecondary program
18.33at the undergraduate level or the equivalent at the graduate level. The commissioner, in
18.34consultation with the Healthcare Education-Industry Partnership, shall determine the
19.1health care fields where the need is the greatest, including, but not limited to, respiratory
19.2therapy, clinical laboratory technology, radiologic technology, and surgical technology;
19.3    (5) for pharmacists who agree to practice in designated rural areas; and
19.4    (6) for dentists agreeing to deliver at least 25 percent of the dentist's yearly patient
19.5encounters to state public program enrollees or patients receiving sliding fee schedule
19.6discounts through a formal sliding fee schedule meeting the standards established by
19.7the United States Department of Health and Human Services under Code of Federal
19.8Regulations, title 42, section 51, chapter 303.
19.9    (b) Appropriations made to the account do not cancel and are available until
19.10expended, except that at the end of each biennium, any remaining balance in the account
19.11that is not committed by contract and not needed to fulfill existing commitments shall
19.12cancel to the fund.

19.13    Sec. 29. Minnesota Statutes 2007 Supplement, section 197.791, subdivision 1, is
19.14amended to read:
19.15    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
19.16section.
19.17    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
19.18specified.
19.19    (c) "Cost of attendance" for both graduate and undergraduate students has the
19.20meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.1. The
19.21"Cost of attendance" for graduate students has the meaning given in section 136A.121,
19.22subdivision 6, multiplied by a factor of 1.1 using the tuition and fee maximum established
19.23by law for four-year programs shall be used to calculate the tuition and fee maximum
19.24under section 136A.121, subdivision 6, for a graduate student. For purposes of calculating
19.25the cost of attendance for graduate students, full time is eight credits or more per term or
19.26the equivalent.
19.27    (d) "Child" means a natural or adopted child of a person described in subdivision 4,
19.28paragraph (a), clause (1), item (i) or (ii).
19.29    (e) "Eligible institution" means a postsecondary institution under section 136A.101,
19.30subdivision 4 or a graduate school licensed or registered with the state of Minnesota
19.31serving only graduate students.
19.32    (f) "Program" means the Minnesota GI Bill program established in this section,
19.33unless otherwise specified.
19.34    (g) "Time of hostilities" means any action by the armed forces of the United States
19.35that is recognized by the issuance of a presidential proclamation or a presidential executive
20.1order in which the armed forces expeditionary medal or other campaign service medals
20.2are awarded according to presidential executive order, and any additional period or place
20.3that the commissioner determines and designates, after consultation with the United States
20.4Department of Defense, to be a period or place where the United States is in a conflict that
20.5places persons at such a risk that service in a foreign country during that period or in that
20.6place should be considered to be included.
20.7    (h) "Veteran" has the meaning given in section 197.447. Veteran also includes
20.8a service member who has received an honorable discharge after leaving each period of
20.9federal active duty service and has:
20.10    (1) served 90 days or more of federal active duty in a foreign country during a time
20.11of hostilities in that country or been awarded one or more of the following medals:
20.12    (i) Armed Forces Expeditionary Medal;
20.13    (ii) Kosovo Campaign Medal;
20.14    (iii) Afghanistan Campaign Medal;
20.15    (iv) Iraq Campaign Medal;
20.16    (v) Global War on Terrorism Expeditionary Medal; and
20.17    (vi) other campaign medals authorized for service after September 1, 2001; or
20.18    (2) received a service-related medical discharge from any period of service in a
20.19foreign country during a time of hostilities in that country.
20.20A service member who has fulfilled the requirements for being a veteran under this
20.21paragraph but is still serving actively in the United States armed forces is also a veteran
20.22for the purposes of this section.

20.23    Sec. 30. Minnesota Statutes 2007 Supplement, section 197.791, subdivision 4, is
20.24amended to read:
20.25    Subd. 4. Eligibility. (a) A person is eligible for educational assistance under this
20.26section if:
20.27    (1) the person is:
20.28    (i) a veteran who is serving or has served honorably in any branch or unit of the
20.29United States armed forces at any time on or after September 11, 2001;
20.30    (ii) a nonveteran who has served honorably for a total of five years or more
20.31cumulatively as a member of the Minnesota National Guard or any other active or reserve
20.32component of the United States armed forces, and any part of that service occurred on or
20.33after September 11, 2001;
21.1    (iii) the surviving spouse or child of a person who has served in the military at any
21.2time on or after September 11, 2001, and who has died as a direct result of that military
21.3service; or
21.4    (iv) the spouse or child of a person who has served in the military at any time on or
21.5after September 11, 2001, and who has a total and permanent service-connected disability
21.6as rated by the United States Veterans Administration;
21.7    (2) the person providing the military service described in clause (1), items (i) to (iv),
21.8was a Minnesota resident within six months of the time of the person's initial enlistment or
21.9any reenlistment in the United States armed forces;
21.10    (3) the person receiving the educational assistance is a Minnesota resident, as
21.11defined in section 136A.101, subdivision 8; and
21.12    (4) the person receiving the educational assistance:
21.13    (i) is an undergraduate or graduate student at an eligible institution;
21.14    (ii) is maintaining satisfactory academic progress as defined by the institution for
21.15students participating in federal Title IV programs;
21.16    (iii) is enrolled in an education program leading to a certificate, diploma, or degree
21.17at an eligible institution;
21.18    (iv) has applied for educational assistance under this section prior to the end of the
21.19academic term for which the assistance is being requested;
21.20    (v) is in compliance with child support payment requirements under section
21.21136A.121, subdivision 2 , clause (5); and
21.22    (vi) if an undergraduate student, has applied for the federal Pell Grant and the
21.23Minnesota State Grant has completed and submitted the Free Application for Federal
21.24Student Aid (FAFSA).
21.25    (b) A person's eligibility terminates when the person becomes eligible for benefits
21.26under section 135A.52.
21.27    (c) To determine eligibility, the commissioner may require official documentation,
21.28including the person's federal form DD-214 or other official military discharge papers;
21.29correspondence from the United States Veterans Administration; birth certificate; marriage
21.30certificate; proof of enrollment at an eligible institution; signed affidavits; proof of
21.31residency; proof of identity; or any other official documentation the commissioner
21.32considers necessary to determine eligibility.
21.33    (d) The commissioner may deny eligibility or terminate benefits under this section
21.34to any person who has not provided sufficient documentation to determine eligibility for
21.35the program. An applicant may appeal the commissioner's eligibility determination or
21.36termination of benefits in writing to the commissioner at any time. The commissioner
22.1must rule on any application or appeal within 30 days of receipt of all documentation that
22.2the commissioner requires. The decision of the commissioner regarding an appeal is final.
22.3However, an applicant whose appeal of an eligibility determination has been rejected by
22.4the commissioner may submit an additional appeal of that determination in writing to the
22.5commissioner at any time that the applicant is able to provide substantively significant
22.6additional information regarding the applicant's eligibility for the program. An approval
22.7of an applicant's eligibility by the commissioner following an appeal by the applicant is
22.8not retroactively effective for more than one year or the semester of the person's original
22.9application, whichever is later.
22.10    (e) Upon receiving an application with insufficient documentation to determine
22.11eligibility, the commissioner must notify the applicant within 30 days of receipt of the
22.12application that the application is being suspended pending receipt by the commissioner of
22.13sufficient documentation from the applicant to determine eligibility.

22.14    Sec. 31. Minnesota Statutes 2007 Supplement, section 197.791, subdivision 5, is
22.15amended to read:
22.16    Subd. 5. Benefit amount. (a) On approval by the commissioner of eligibility for
22.17the program, the applicant shall be awarded, on a funds-available basis, the educational
22.18assistance under the program for use at any time according to program rules at any
22.19eligible institution.
22.20    (b) The amount of educational assistance in any semester or term for an eligible
22.21person must be determined by subtracting from the eligible person's cost of attendance the
22.22amount the person received or was eligible to receive in that semester or term from:
22.23    (1) the federal Pell Grant;
22.24    (2) the state grant program under section 136A.121; and
22.25    (3) any federal military or veterans educational benefits including but not limited
22.26to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
22.27vocational rehabilitation benefits, and any other federal benefits associated with the
22.28person's status as a veteran, except veterans disability payments from the United States
22.29Veterans Administration.
22.30    (c) The amount of educational assistance for any eligible person who is a full-time
22.31student must not exceed the following:
22.32    (1) $1,000 per semester or term of enrollment;
22.33    (2) $2,000 per state fiscal year; and
22.34    (3) $10,000 in a lifetime.
23.1For a part-time student, the amount of educational assistance must not exceed $500
23.2per semester or term of enrollment. For the purpose of this paragraph, a part-time
23.3undergraduate student is a student taking fewer than 12 credits or the equivalent for a
23.4semester or term of enrollment, and a part-time graduate student is a student considered
23.5part time by the eligible institution the graduate student is attending. The minimum award
23.6per term for the undergraduate and graduate students will be $50 per term.

23.7    Sec. 32. Laws 2007, chapter 144, article 1, section 3, subdivision 2, is amended to read:
23.8
Subd. 2. State Grants
147,400,000
144,138,000
23.9If the appropriation in this subdivision for
23.10either year is insufficient, the appropriation
23.11for the other year is available for it.
23.12For the biennium, the tuition maximum for
23.13students in four-year programs is $9,838 in
23.14each year for students in four-year programs,
23.15and for students in two-year programs, is
23.16$6,114 in the first year and $5,808 in the
23.17second year.
23.18This appropriation sets the living and
23.19miscellaneous expense allowance at $5,900
23.20each year.
23.21Of the appropriation in the second year,
23.22$3,800,000 must be transferred to the Board
23.23of Trustees of the Minnesota State Colleges
23.24and Universities for the power of you
23.25program under section 136F.19. Up to half
23.26this amount must be used for pilot programs
23.27under section ....
23.28Of the appropriation in the second year,
23.29$200,000 is for the teachers of color financial
23.30aid pilot program under section .....

23.31    Sec. 33. Laws 2007, chapter 144, article 1, section 5, subdivision 2, is amended to read:
23.32
Subd. 2. Operations and Maintenance
621,184,000
637,824,000
24.1This appropriation includes funding for
24.2operation and maintenance of the system
24.3including amounts to advance the University
24.4of Minnesota's efforts to sustain quality
24.5and competitiveness; and funding for the
24.6"Advancing Education" initiatives including
24.7an Ojibwe Indian language program on the
24.8Duluth campus.
24.9This appropriation includes funding to
24.10establish banded tuition at the Morris,
24.11Crookston, and Duluth campuses to reduce
24.12tuition costs for students.
24.13This appropriation includes funding for
24.14scholarships for undergraduate Minnesota
24.15resident students with family income under
24.16$150,000 per year. This appropriation must
24.17be matched with $1.50 of nonstate money for
24.18each $1 of state money.
24.19This appropriation includes funding for the
24.20Center for Transportation Studies to complete
24.21a study to assess public policy options for
24.22reducing the volume of greenhouse gases
24.23emitted from the transportation sector in
24.24Minnesota. The Center for Transportation
24.25Studies must report its preliminary findings
24.26to the legislature by February 1, 2008, and
24.27must issue its full report by June 1, 2008.
24.28This is a onetime appropriation.
24.29This appropriation includes funding to
24.30establish an India Center to improve and
24.31promote relations with India and Southeast
24.32Asia. The center must partner with public
24.33and private organizations in Minnesota to:
24.34(1) foster an understanding of the history,
24.35culture, and values of India;
25.1(2) serve as a resource and catalyst to
25.2promote economic, governmental, and
25.3academic pursuits involving India; and
25.4(3) facilitate educational and business
25.5exchanges and partnerships, collaborative
25.6research, and teaching and training activities
25.7for Minnesota students and teachers.
25.8The Board of Regents may establish an
25.9advisory council to facilitate the mission
25.10and objectives of the India Center and must
25.11report on the progress of the India Center
25.12by February 15, 2008, to the governor
25.13and chairs of the legislative committees
25.14responsible for higher education finance.
25.15This appropriation must be matched by an
25.16equal amount of nonstate money. This is a
25.17onetime appropriation.
25.18This appropriation includes funding to assist
25.19in the formation of the neighborhood alliance
25.20and for projects identified in section 10. The
25.21alliance, the Board of Regents, and the city of
25.22Minneapolis may cooperate on the projects
25.23and may use public services of other entities
25.24to complete all or a portion of a project. This
25.25is a onetime appropriation.
25.26This appropriation includes funding to
25.27establish a Dakota language teacher training
25.28immersion program on the Twin Cities
25.29campus to prepare teachers to teach in
25.30Dakota language immersion programs.
25.31One Two percent of the appropriation in
25.32this subdivision for the second year is
25.33available when the Board of Regents of the
25.34University of Minnesota demonstrates to
25.35the commissioner of finance that the board
26.1has met at least three of the five following
26.2performance goals:
26.3(1) increase financial support to pay the cost
26.4of attendance for students demonstrating
26.5financial need;
26.6(2) maintain or improve the University of
26.7Minnesota's rank in its national share of
26.8total research and development expenditures
26.9reported to the National Science Foundation
26.10over the 2007 ranking;
26.11(3) increase by at least five percent, compared
26.12to fiscal year 2007, the number of degrees
26.13awarded in science, technology, engineering,
26.14mathematics, and health sciences disciplines;
26.15(4) increase by at least five percent, compared
26.16to fiscal year 2007, the amount of financial
26.17support from key funding sources for
26.18renewable energy research; and
26.19(5) increase and improve interaction and
26.20research activity beneficial to business and
26.21industry.
26.22By October 1, 2007, the Board of Regents
26.23and the Office of Higher Education must
26.24agree on specific numerical indicators and
26.25definitions for each of the five goals that will
26.26be used to demonstrate the University of
26.27Minnesota's attainment of each goal.
26.28On or before April 1, 2008, the Board
26.29of Regents must report to the legislative
26.30committees with primary jurisdiction over
26.31higher education finance and policy the
26.32progress of the University of Minnesota
26.33toward attaining the goals.

27.1    Sec. 34. POWER OF YOU PILOT PROGRAMS.
27.2    Subdivision 1. Power of you pilot programs. Pilots shall be established in suburban
27.3and rural sites to test the expansion of power of you. In addition to the requirements
27.4under Minnesota Statutes, section 136F.19, the power of you pilot programs must follow
27.5the model set forth by the power of you at Metropolitan State University, Minneapolis
27.6Community and Technical College, and St. Paul College, increasing financial aid to
27.7students enrolled in the program.
27.8    Subd. 2. Suburban pilot selection. By June 1, 2008, Metropolitan State University
27.9shall select one technical college and one community college or community-technical
27.10college to each partner with a high school in developing a power of you pilot program,
27.11to test expansion of the program established under Minnesota Statutes, section 136F.19,
27.12to students in Twin Cities' suburban areas. Metropolitan State University shall choose
27.13the colleges' high school partners.
27.14    Subd. 3. Rural pilot selection. By June 1, 2008, the chancellor of Minnesota
27.15State Colleges and Universities shall select two rural colleges, one being a multi-campus
27.16institution in an agricultural part of the state and the other a multi-campus institution in a
27.17nonagricultural part of the state dependent on natural resources, for power of you pilot
27.18programs. Each of the campus sites of the colleges shall work with a high school to test
27.19the application of the power of you pilot program established under Minnesota Statutes,
27.20section 136F.19, to nonmetropolitan students and colleges. The chancellor shall choose
27.21the campus' high school partners.

27.22    Sec. 35. TEACHERS OF COLOR FINANCIAL AID PILOT PROGRAM.
27.23    Subdivision 1. Establishment. The teachers of color financial aid pilot program
27.24is established under the supervision of the Minnesota Office of Higher Education to
27.25encourage academically talented postsecondary students of color to become teachers
27.26of early childhood, elementary, or secondary education; to increase the academic
27.27achievement of diverse student populations; to help close the existing student achievement
27.28gaps by creating a cadre of qualified new teachers; and to encourage students of color
27.29attending four-year institutions to enroll in a teacher preparation program and students
27.30attending two-year colleges to transfer to and enroll in a teacher preparation program at
27.31eligible institutions. Financial aid under this pilot program is to provide incentives for
27.32postsecondary students of color to enter teacher preparation programs and to teach in
27.33Minnesota school districts.
27.34    Subd. 2. Definitions. For the purposes of this section, the following terms have
27.35the meanings given them:
28.1    (1) "student of color" means a student who is African American, African immigrant,
28.2American Indian, Alaskan native, Asian American or Pacific Islander, or Hispanic;
28.3    (2) "director" means the director of the Minnesota Office of Higher Education;
28.4    (3) "eligible institution" means a public four-year postsecondary institution with an
28.5approved teacher preparation program that is participating in a pilot partnership under
28.6subdivision 4; and
28.7    (4) "teacher preparation program" means a program at an institution that prepares
28.8students to be teachers.
28.9    Subd. 3. Grants. (a) The director shall award grants under this section to eligible
28.10students as an incentive to enter teacher preparation programs. An eligible student must
28.11submit an application for a grant under this section for the student's junior and senior years
28.12in a teacher preparation program. Applications must be submitted to the director in the
28.13form and manner and with the information required by the director.
28.14    (b) An eligible student who is enrolled as a junior or senior in a teacher preparation
28.15program at an eligible institution may receive a grant under this section of up to $5,000
28.16each year for a maximum of two academic years or the equivalent at an eligible institution
28.17if the student continues to make satisfactory progress toward a baccalaureate degree
28.18in education.
28.19    (c) Grants under this section are made within the limits of appropriations for the
28.20pilot program. The director may prorate the grant awards and the length of time of the
28.21award for students who attend part-time. The director must give priority for grants
28.22under this section to students who are eligible for the Pell grant or for a state grant under
28.23Minnesota Statutes, section 136A.121.
28.24    Subd. 4. Student eligibility. A student is eligible to receive a grant under this
28.25section if the student:
28.26    (1) is an American citizen or eligible noncitizen residing in Minnesota;
28.27    (2) certifies that the student is a student of color;
28.28    (3) is enrolled in an eligible institution and making satisfactory academic progress;
28.29and
28.30    (4) is admitted to an approved teacher preparation program at an eligible institution.
28.31    Subd. 5. Pilot partnerships. Up to four partnerships between a public four-year
28.32institution in Minnesota with an approved teacher preparation program and at least one
28.33Minnesota school district may participate in the teachers of color financial aid pilot
28.34program. Of the four partnerships, one must be a partnership between Winona State
28.35University and the Rochester school district and one must be a partnership between St.
28.36Cloud State University and Robbinsdale public schools. The director must select the
29.1other partnerships for the pilot program based on applications submitted according to the
29.2timeline established and with information required by the director. Each partnership
29.3must agree to devise a plan to recruit students of color for teacher preparation programs
29.4and assistance under this section. Recruitment of students must include recruiting and
29.5encouraging talented students of color who attend two-year colleges to transfer to teacher
29.6preparation programs at participating pilot institutions.
29.7    Subd. 6. Teachers of color program promotion. The director may use up to
29.8$25,000 of the appropriation for the program under this section for the administration and
29.9promotion of the pilot program and to assist with the recruitment of students of color
29.10for teacher preparation programs. The director must consult with the commissioner of
29.11education, the University of Minnesota, Minnesota State Colleges and Universities, and
29.12private colleges to develop strategies to recruit, retain, and mentor students in pilot
29.13programs while the students attend a teacher preparation program. To the extent possible,
29.14existing state or private programs must be used to provide recruitment, retention, and
29.15mentoring services under this subdivision.
29.16    Subd. 7. Report. The director must report to the committees of the legislature with
29.17responsibility for higher education finance by February 1, 2009, on the teachers of color
29.18financial aid pilot project. The report must include an evaluation of participation with
29.19recommendations on the program design, including the potential to expand the program to
29.20graduate education programs. The report must also make recommendations on continued
29.21funding for the program.

29.22    Sec. 36. REPORT TO LEGISLATURE.
29.23    The staff of the Office of the Chancellor of Minnesota State Colleges and
29.24Universities shall evaluate the performance of the power of you pilot programs established
29.25at the locations chosen in section 28 and in Minnesota Statutes, section 136F.19, to
29.26determine the effects on participation rates, retention, and potential enhancement of the
29.27workforce, and shall evaluate the costs and benefits of the pilot programs. The Office of
29.28the Chancellor shall report the results of the evaluation to the committees in the senate and
29.29house of representatives with jurisdiction over higher education by January 15, 2010.

29.30    Sec. 37. 2008 APPOINTMENTS TO THE BOARD OF TRUSTEES.
29.31    Notwithstanding Minnesota Statutes, section 136F.02, the governor shall make no
29.32appointments to the Board of Trustees of the Minnesota State Colleges and Universities
29.33for board terms expiring in 2008 and all appointments for these seats must be made by the
29.34labor organizations under section 1. Beginning in 2008 and every six years thereafter,
30.1the IFO, MSCF, MAPE, and AFSCME must each appoint one member to the board of
30.2trustees according to the requirements of sections .. and ...

30.3ARTICLE 2
30.4JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS SUMMARY

30.5
Section 1. SUMMARY OF APPROPRIATIONS.
30.6    The amounts shown in this section summarize direct appropriations or reductions,
30.7by fund, made in this act.
30.8
2008
2009
Total
30.9
General
$
(3,000,000)
$
2,218,000
$
(782,000)
30.10
Cancellations
-0-
2,758,000
2,758,000
30.11
Transfers From Other Funds
-0-
22,000,000
22,000,000
30.12
Total
$
(3,000,000)
$
(22,540,000)
$
(25,540,000)

30.13
30.14
Sec. 2. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS AND
REDUCTIONS.
30.15    The dollar amounts in the columns under "APPROPRIATIONS AND
30.16REDUCTIONS" are added to or, if shown in parentheses, subtracted from the
30.17appropriations in Laws 2007, chapter 135, or other law to the specified agencies. The
30.18appropriations are from the general fund, or another named fund, and are available for the
30.19fiscal years indicated for each purpose. The figures "2008" and "2009" used in this act
30.20mean that the appropriations listed under them are available for the fiscal year ending June
30.2130, 2008, or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second
30.22year" is fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations
30.23for the fiscal year ending June 30, 2008, are effective the day following final enactment.
30.24
30.25
APPROPRIATIONS AND
REDUCTIONS
30.26
Available for the Year
30.27
Ending June 30
30.28
2008
2009

30.29
30.30
Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
30.31
Subdivision 1.Total Appropriation
$
(3,000,000)
$
2,250,000
30.32
Appropriations by Fund
30.33
2008
2009
30.34
General
(3,000,000)
2,250,000
30.35
Cancellations
-0-
2,758,000
30.36
30.37
Transfers From
Other Funds
-0-
8,000,000
31.1The amounts that may be spent for each
31.2purpose are specified in the following
31.3subdivisions.
31.4
31.5
Subd. 2.Employment and Economic
Development
31.6$550,000 in the second year is a base
31.7reduction to the department's operating
31.8budget.
31.9
31.10
Subd. 3.Business and Community
Development
(3,000,000)
2,800,000
31.11
Appropriations by Fund
31.12
General
(3,000,000)
2,800,000
31.13$400,000 in the second year is for the
31.14establishment and operation of the Office of
31.15Science and Technology. This is a onetime
31.16appropriation and is available until expended.
31.17$2,000,000 in the second year is for grants
31.18to the six Minnesota Initiative Foundations
31.19to expand existing small business revolving
31.20loans with a focus on lending to entrepreneurs
31.21and new businesses. The commissioner of
31.22employment and economic development
31.23must make equal grants to each Minnesota
31.24Initiative Foundation. This is a onetime
31.25appropriation.
31.26$200,000 in the second year is for a grant to
31.27the Hennepin-Carver Workforce Investment
31.28Board (WIB) to coordinate with the Partners
31.29for Progress Regional Skills Consortium
31.30to provide employment and training as
31.31demonstrated by the Twin Cities regional
31.32health care training partnership project. This
31.33is a onetime appropriation.
31.34$200,000 in the second year is for a grant to
31.35HIRED to operate its industry sector training
32.1initiatives, which provide employee training
32.2developed in collaboration with employers in
32.3specific, high-demand industries. This is a
32.4onetime appropriation.
32.5
Subd. 4.Cancellations
$
-0-
$
2,758,000
32.6Prior to July 31, 2008, the unexpended
32.7balances from the following appropriations
32.8are canceled to the general fund:
32.9(1) the appropriation made in Laws 2005,
32.10First Special Session chapter 3, article
32.1110, section 23, to the foreign trade zone
32.12authority; and
32.13(2) the appropriation made in Laws
32.142005, First Special Session chapter 1,
32.15article 3, section 2, subdivision 2, for
32.16the methamphetamine laboratory cleanup
32.17revolving loan fund.
32.18Prior to July 31, 2008, of the unexpended
32.19balance in the job skills partnership account,
32.20$2,000,000 is canceled to the general fund.
32.21
Subd. 5.Transfers
$
-0-
$
8,000,000
32.22Prior to July 31, 2008, the amount specified
32.23from the unexpended balance of the
32.24workforce development fund must be
32.25transferred to the general fund.

32.26
Sec. 4. LABOR AND INDUSTRY
32.27
Subdivision 1.Base Reduction
$
-0-
$
(43,000)
32.28$43,000 in the second year is a base reduction
32.29to the municipal building permit reporting
32.30unit in the labor standards program. The
32.31commissioner must not reduce funding
32.32available for prevailing wage enforcement
33.1and must fill all positions when vacancies
33.2become available.
33.3
Subd. 2.Transfers
$
-0-
$
14,000,000
33.4Prior to July 31, 2008, the amount specified
33.5from the unexpended balance of the
33.6worker's compensation special fund must be
33.7transferred to the general fund.

33.8
33.9
Sec. 5. BUREAU OF MEDIATION
SERVICES
$
-0-
$
(69,000)
33.10This is a base reduction.

33.11
33.12
Sec. 6. COMBATIVE SPORTS
COMMISSION
$
-0-
$
80,000
33.13This amount is added to the commission's
33.14base budget.

33.15    Sec. 7. [116J.996] MILITARY RESERVIST ECONOMIC INJURY LOANS.
33.16    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
33.17section.
33.18    (b) "Active service" has the meaning given in section 190.05.
33.19    (c) "Commissioner" means the commissioner of employment and economic
33.20development.
33.21    (d) "Eligible business" means a small business, as defined in section 645.445, that
33.22was operating in Minnesota on the date a military reservist received orders for active
33.23service.
33.24    (e) "Essential employee" means a military reservist who is an owner or employee
33.25of an eligible business and whose managerial or technical expertise is critical to the
33.26day-to-day operation of the eligible business.
33.27    (f) "Military reservist" means a member of the reserve component of the armed
33.28forces.
33.29    (g) "Reserve component of the armed forces" has the meaning given it in United
33.30States Code, title 10, section 101(c).
33.31    (h) "Substantial economic injury" means an economic harm to an eligible business
33.32that results in the inability of the eligible business to:
33.33    (1) meet its obligations as they mature;
33.34    (2) pay its ordinary and necessary operating expenses; or
34.1    (3) manufacture, produce, market, or provide a product or service ordinarily
34.2manufactured, produced, marketed, or provided by the eligible business.
34.3    Subd. 2. Loan program. The commissioner may make onetime, interest-free loans
34.4of up to $20,000 per borrower to eligible businesses that have sustained or are likely to
34.5sustain substantial economic injury as a result of the call to active service for 180 days
34.6or more of an essential employee. Loans must be made for the purpose of preventing,
34.7remedying, or ameliorating the substantial economic injury.
34.8    Subd. 3. Transfer. The commissioner of veterans affairs shall transfer funds
34.9as requested by the commissioner of employment and economic development for the
34.10purposes of the loan program created in this section, including costs incurred by the
34.11commissioner to establish and administer the program.
34.12    Subd. 4. Rules. Using the expedited rulemaking procedures of section 14.389, the
34.13commissioner shall develop and publish expedited rules for loan applications, use of
34.14funds, needed collateral, terms of loans, and other details of military reservist economic
34.15injury loans.

34.16    Sec. 8. Minnesota Statutes 2007 Supplement, section 116L.17, subdivision 1, is
34.17amended to read:
34.18    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
34.19have the meanings given them in this subdivision.
34.20    (b) "Commissioner" means the commissioner of employment and economic
34.21development.
34.22    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the
34.23time employment ceased or was working in the state at the time employment ceased and:
34.24    (1) has been permanently separated or has received a notice of permanent separation
34.25from public or private sector employment and is eligible for or has exhausted entitlement
34.26to unemployment benefits, and is unlikely to return to the previous industry or occupation;
34.27    (2) has been long-term unemployed and has limited opportunities for employment
34.28or reemployment in the same or a similar occupation in the area in which the individual
34.29resides, including older individuals who may have substantial barriers to employment by
34.30reason of age;
34.31    (3) has been terminated or has received a notice of termination of employment as a
34.32result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
34.33    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
34.34result of general economic conditions in the community in which the individual resides
34.35or because of natural disasters;
35.1    (5) has been permanently separated from employment in a restaurant, bar, or
35.2lawful gambling organization from October 1, 2007, to October 1, 2009, due to the
35.3implementation of any state law prohibiting smoking; or
35.4    (6) is a veteran as defined by section 197.447, has been discharged or released from
35.5active duty under honorable conditions within the last 36 months, and (i) is unemployed or
35.6(ii) is employed in a job which pays less than what the veteran could verifiably earn; or
35.7    (6) (7) is a displaced homemaker. A "displaced homemaker" is an individual who
35.8has spent a substantial number of years in the home providing homemaking service and
35.9(i) has been dependent upon the financial support of another; and now due to divorce,
35.10separation, death, or disability of that person, must find employment to self support; or (ii)
35.11derived the substantial share of support from public assistance on account of dependents
35.12in the home and no longer receives such support.
35.13    To be eligible under this clause, the support must have ceased while the worker
35.14resided in Minnesota.
35.15    (d) "Eligible organization" means a state or local government unit, nonprofit
35.16organization, community action agency, business organization or association, or labor
35.17organization.
35.18    (e) "Plant closing" means the announced or actual permanent shutdown of a single
35.19site of employment, or one or more facilities or operating units within a single site of
35.20employment.
35.21    (f) "Substantial layoff" means a permanent reduction in the workforce, which is
35.22not a result of a plant closing, and which results in an employment loss at a single site
35.23of employment during any 30-day period for at least 50 employees excluding those
35.24employees that work less than 20 hours per week.
35.25EFFECTIVE DATE.This section is effective the day following final enactment.

35.26    Sec. 9. Minnesota Statutes 2006, section 116L.17, is amended by adding a subdivision
35.27to read:
35.28    Subd. 11. Transfer from department of veterans affairs. The commissioner of
35.29veterans affairs shall transfer funds as requested by the commissioner of employment and
35.30economic development to reimburse the workforce development fund for costs incurred
35.31under section 116L.17, subdivision 1, paragraph (c), clause (6).
35.32EFFECTIVE DATE.This section is effective the day following final enactment.

35.33    Sec. 10. Minnesota Statutes 2007 Supplement, section 214.04, subdivision 3, is
35.34amended to read:
36.1    Subd. 3. Officers; staff. The executive director of each health-related board and
36.2the executive secretary of each non-health-related board shall be the chief administrative
36.3officer for the board but shall not be a member of the board. The executive director or
36.4executive secretary shall maintain the records of the board, account for all fees received
36.5by it, supervise and direct employees servicing the board, and perform other services as
36.6directed by the board. The executive directors, executive secretaries, and other employees
36.7of the following boards shall be hired by the board, and the executive directors or executive
36.8secretaries shall be in the unclassified civil service, except as provided in this subdivision:
36.9    (1) Dentistry;
36.10    (2) Medical Practice;
36.11    (3) Nursing;
36.12    (4) Pharmacy;
36.13    (5) Accountancy;
36.14    (6) Architecture, Engineering, Land Surveying, Landscape Architecture,
36.15Geoscience, and Interior Design;
36.16    (7) Barber Examiners;
36.17    (8) Cosmetology;
36.18    (9) Teaching;
36.19    (10) Peace Officer Standards and Training;
36.20    (11) Social Work;
36.21    (12) Marriage and Family Therapy;
36.22    (13) Dietetics and Nutrition Practice; and
36.23    (14) Licensed Professional Counseling.; and
36.24    (15) Combative Sports Commission.
36.25    The executive directors or executive secretaries serving the boards are hired by those
36.26boards and are in the unclassified civil service, except for part-time executive directors
36.27or executive secretaries, who are not required to be in the unclassified service. Boards
36.28not requiring full-time executive directors or executive secretaries may employ them on
36.29a part-time basis. To the extent practicable, the sharing of part-time executive directors
36.30or executive secretaries by boards being serviced by the same department is encouraged.
36.31Persons providing services to those boards not listed in this subdivision, except executive
36.32directors or executive secretaries of the boards and employees of the attorney general, are
36.33classified civil service employees of the department servicing the board. To the extent
36.34practicable, the commissioner shall ensure that staff services are shared by the boards
36.35being serviced by the department. If necessary, a board may hire part-time, temporary
36.36employees to administer and grade examinations.
37.1EFFECTIVE DATE.This section is effective the day following final enactment.

37.2    Sec. 11. Minnesota Statutes 2007 Supplement, section 268.047, subdivision 1, is
37.3amended to read:
37.4    Subdivision 1. General rule. Unemployment benefits paid to an applicant,
37.5including extended, additional, and shared work benefits, will be used in computing
37.6the future tax rate of a taxpaying base period employer or charged to the reimbursable
37.7account of a base period nonprofit or government employer that has elected to be liable for
37.8reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment
37.9benefits used in computing the future tax rate of taxpaying employers or charged to the
37.10reimbursable account of a nonprofit or government employer that has elected to be liable
37.11for reimbursements is the same percentage of the total amount of unemployment benefits
37.12paid as the percentage of wage credits from the employer is of the total amount of wage
37.13credits from all the applicant's base period employers.
37.14    In making computations under this subdivision, the amount of wage credits, if not a
37.15whole dollar, must be computed to the nearest whole dollar.

37.16    Sec. 12. Minnesota Statutes 2007 Supplement, section 268.047, subdivision 2, is
37.17amended to read:
37.18    Subd. 2. Exceptions for all employers. Unemployment benefits paid will not be
37.19used in computing the future tax rate of a taxpaying base period employer or charged to
37.20the reimbursable account of a base period nonprofit or government employer that has
37.21elected to be liable for reimbursements when:
37.22    (1) the applicant was discharged from the employment because of aggravated
37.23employment misconduct as determined under section 268.095. This exception applies
37.24only to unemployment benefits paid for periods after the applicant's discharge from
37.25employment;
37.26    (2) an applicant's discharge from that employment occurred because a law required
37.27removal of the applicant from the position the applicant held;
37.28    (3) the employer is in the tourist or recreation industry and is in active operation of
37.29business less than 15 calendar weeks each year and the applicant's wage credits from the
37.30employer are less than 600 times the applicable state or federal minimum wage;
37.31    (4) the employer provided regularly scheduled part-time employment to the
37.32applicant during the applicant's base period and continues to provide the applicant with
37.33regularly scheduled part-time employment during the benefit year of at least 90 percent
37.34of the part-time employment provided in the base period, and is an involved employer
37.35because of the applicant's loss of other employment. This exception terminates effective
38.1the first week that the employer fails to meet the benefit year employment requirements.
38.2This exception applies to educational institutions without consideration of the period
38.3between academic years or terms;
38.4    (5) the employer is a fire department or firefighting corporation or operator of
38.5a life-support transportation service, and continues to provide employment for the
38.6applicant as a volunteer firefighter or a volunteer ambulance service personnel during the
38.7benefit year on the same basis that employment was provided in the base period. This
38.8exception terminates effective the first week that the employer fails to meet the benefit
38.9year employment requirements;
38.10    (6) the applicant's unemployment from this employer was a direct result of the
38.11condemnation of property by a governmental agency, a fire, flood, or act of nature,
38.12where 25 percent or more of the employees employed at the affected location, including
38.13the applicant, became unemployed as a result. This exception does not apply where the
38.14unemployment was a direct result of the intentional act of the employer or a person acting
38.15on behalf of the employer;
38.16    (7) the unemployment benefits were paid by another state as a result of the
38.17transferring of wage credits under a combined wage arrangement provided for in section
38.18268.131 ;
38.19    (8) the applicant stopped working because of a labor dispute at the applicant's
38.20primary place of employment if the employer was not a party to the labor dispute;
38.21    (9) the unemployment benefits were determined overpaid unemployment benefits
38.22under section 268.18; or
38.23    (10) the applicant was employed as a replacement worker, for a period of six months
38.24or longer, for an employee who is in the military reserve and was called for active duty
38.25during the time the applicant worked as a replacement, and the applicant was laid off
38.26because the employee returned to employment after active duty; or
38.27    (11) the trust fund was reimbursed for the unemployment benefits by the federal
38.28government.
38.29EFFECTIVE DATE.This section is effective the day following final enactment.

38.30    Sec. 13. Minnesota Statutes 2007 Supplement, section 268.085, subdivision 3, is
38.31amended to read:
38.32    Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not
38.33eligible to receive unemployment benefits for any week with respect to which the applicant
38.34is receiving, has received, or has filed for payment, equal to or in excess of the applicant's
38.35weekly unemployment benefit amount, in the form of:
39.1    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
39.2does not apply to (i) vacation pay paid upon a permanent separation from employment;, or
39.3(ii) vacation pay paid from a vacation fund administered by a union or a third party not
39.4under the control of the employer;
39.5    (2) severance pay, bonus pay, sick pay, and any other payments, except earnings
39.6under subdivision 5, and back pay under subdivision 6, paid by an employer because
39.7of, upon, or after separation from employment, but only if the payment is considered
39.8wages at the time of payment under section 268.035, subdivision 29. This clause does
39.9not apply to the first $5,000 of any amount of severance pay, bonus pay, sick pay, or any
39.10other payments paid to an employee; or
39.11    (3) pension, retirement, or annuity payments from any plan contributed to by a base
39.12period employer including the United States government, except Social Security benefits
39.13that are provided for in subdivision 4. The base period employer is considered to have
39.14contributed to the plan if the contribution is excluded from the definition of wages under
39.15section 268.035, subdivision 29, clause (1).
39.16    An applicant is not considered to have received the lump sum payment if the
39.17applicant immediately deposits that payment in a qualified pension plan or account.
39.18    (b) This subdivision applies to all the weeks of payment. Payments under paragraph
39.19(a), clauses (1) and (2), are applied to the period immediately following the last day
39.20of employment. and The number of weeks of payment, for purposes of those clauses,
39.21is determined as follows:
39.22    (1) if the payments are made periodically, the total of the payments to be received is
39.23divided by the applicant's last level of regular weekly pay from the employer; or
39.24    (2) if the payment is made in a lump sum, that sum is divided by the applicant's last
39.25level of regular weekly pay from the employer.
39.26    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
39.27unemployment benefits are reduced by the amount of the payment. If the computation
39.28of reduced unemployment benefits is not a whole dollar, it is rounded down to the next
39.29lower whole dollar.
39.30EFFECTIVE DATE.This section, except for subdivision 3, paragraph (a), clause
39.31(2), is effective the day following final enactment. Subdivision 3, paragraph (a), clause (2),
39.32is effective for unemployment benefits paid on or after January 1, 2006, regardless of when
39.33the continued request was filed or the week for which the unemployment benefits are paid.

39.34    Sec. 14. Minnesota Statutes 2007 Supplement, section 268.085, subdivision 16,
39.35is amended to read:
40.1    Subd. 16. Actively seeking suitable employment defined. (a) "Actively seeking
40.2suitable employment" means those reasonable, diligent efforts an individual in similar
40.3circumstances would make if genuinely interested in obtaining suitable employment under
40.4the existing conditions in the labor market area. Limiting the search to positions that are
40.5not available or are above the applicant's training, experience, and qualifications is not
40.6"actively seeking suitable employment."
40.7    (b) To be considered "actively seeking suitable employment" an applicant must,
40.8when reasonable, contact those employers from whom the applicant was laid off because
40.9of lack of work and request suitable employment.
40.10    (c) If reasonable prospects of suitable employment in the applicant's usual or
40.11customary occupation do not exist, the applicant must actively seek other suitable
40.12employment to be considered "actively seeking suitable employment." This applies to an
40.13applicant who is seasonally unemployed.
40.14    (d) An applicant who is seeking employment only through a union is not considered
40.15actively seeking suitable employment unless if the applicant is in an occupation where
40.16it is required by union rule that all the hiring in that locality is done through the
40.17union. or that all members are If the applicant is a union member who is restricted
40.18to obtaining employment among signatory contractors in the construction industry,
40.19seeking employment only with those signatory contractors is considered actively seeking
40.20employment. The applicant must be a union member in good standing, registered with
40.21the union for employment, and in compliance with other union rules to be considered
40.22"actively seeking suitable employment."
40.23EFFECTIVE DATE.This section is effective the day following final enactment.

40.24    Sec. 15. Minnesota Statutes 2006, section 268.125, subdivision 1, is amended to read:
40.25    Subdivision 1. Additional unemployment benefits; when available. Additional
40.26unemployment benefits are available if:
40.27    (1) a county had a total unemployment rate for the prior 12-calendar month period of
40.28at least 1.8 times the state average unemployment rate for the prior 12-calendar month
40.29period and the state average unemployment rate for the same 12-calendar month period
40.30was at least 4.6 percent. The commissioner must calculate the applicable unemployment
40.31rates within 30 calendar days following the end of the month. Once it has been calculated
40.32that the total unemployment rate in a county equals or exceeds 1.8 times the state average
40.33unemployment rate for the prior 12-calendar month period, the additional benefits are
40.34available beginning the Sunday following the date of calculation and continuing for a
40.35minimum of 13 calendar weeks; or
41.1    (1) (2) (i) at a facility that had 100 or more employees, the employer reduced
41.2operations, resulting within a one-month period in the layoff of 50 percent or more of the
41.3facility's work force, including reductions caused as a result of a major natural disaster
41.4declared by the president;
41.5    (2) (ii) the employer has no expressed plan to resume operations that would lead to
41.6the reemployment of those employees in the immediate future; and
41.7    (3) (iii) the seasonally adjusted unemployment rate in the county that the facility
41.8is located was ten percent or more during the month of the reduction or any of the three
41.9months before or after the month of the reduction.
41.10EFFECTIVE DATE.This section is effective the day following final enactment
41.11and applies retroactively to January 1, 2008.

41.12    Sec. 16. Minnesota Statutes 2006, section 268.125, subdivision 2, is amended to read:
41.13    Subd. 2. Payment of unemployment benefits from trust fund; effect on
41.14employer. Additional unemployment benefits are payable from the trust fund. Additional
41.15unemployment benefits paid will not be used in computing the experience rating of a
41.16taxpaying employer nor charged to the reimbursing account of a nonprofit or government
41.17employer.

41.18    Sec. 17. Minnesota Statutes 2007 Supplement, section 268.125, subdivision 3, is
41.19amended to read:
41.20    Subd. 3. Eligibility conditions. An applicant is eligible to receive additional
41.21unemployment benefits for any week during the applicant's benefit year if:
41.22    (1) for any week during which benefits are available under subdivision 1, clause (1):
41.23     (i) the applicant resides in a county that meets the requirements of subdivision 1,
41.24clause (1), and resided in that county each week that regular unemployment benefits
41.25were paid;
41.26    (ii) the applicant meets the same eligibility requirements that are required for regular
41.27unemployment benefits under section 268.069; and
41.28    (iii) the applicant has exhausted regular unemployment benefits under section
41.29268.07, is not entitled to receive extended unemployment benefits under section 268.115,
41.30and is not entitled to receive unemployment benefits under any other state or federal
41.31law for that week; or
41.32    (1) (2) the applicant was laid off from employment as a result of a reduction under
41.33subdivision 1, clause (2), or was laid off because of lack of work from that employer
42.1during the three-month period before, or the three-month period after, the month of the
42.2reduction under subdivision 1, clause (2);
42.3    (2) (3) the applicant meets the same eligibility requirements that are required for
42.4regular unemployment benefits under section 268.085 268.069;
42.5    (3) the applicant is not ineligible under section 268.095 because of a quit or a
42.6discharge;
42.7    (4) the applicant has exhausted regular unemployment benefits under section 268.07,
42.8is not entitled to receive extended unemployment benefits under section 268.115, and
42.9is not entitled to receive unemployment benefits under any other state or federal law
42.10for that week; and
42.11    (5) a majority of the applicant's wage credits were from the employer that had a
42.12reduction in operations under subdivision 1, clause (2).
42.13EFFECTIVE DATE.This section is effective the day following final enactment
42.14and applies retroactively to January 1, 2008.

42.15    Sec. 18. Minnesota Statutes 2006, section 268.125, is amended by adding a subdivision
42.16to read:
42.17    Subd. 6. Notice. The commissioner must notify applicants of the availability
42.18of additional unemployment benefits by contacting applicants by mail or electronic
42.19transmission, by posting a notice on the department's official Web site, and by appropriate
42.20announcement.
42.21EFFECTIVE DATE.This section is effective the day following final enactment.

42.22    Sec. 19. [268.232] UNEMPLOYMENT INSURANCE WORKER INITIATIVE.
42.23    Subdivision 1. Purpose; set aside. The unemployment insurance workers initiative
42.24is created to increase the number of staff at each workforce development center who are
42.25available to provide services to unemployed workers seeking information, assistance, and
42.26advice on applying for unemployment insurance benefits.
42.27    Subd. 2. Tax reduction. Beginning January 1, 2009, the base unemployment tax
42.28calculated under section 268.051, subdivision 2, paragraph (b), is reduced by .01 percent.
42.29    Subd. 3. Fee suspension. Notwithstanding Minnesota Statutes, section 116L.20, the
42.30special assessment under that section of .10 percent is suspended until December 31, 2011.
42.31    Subd. 4. Workforce enhancement fee. A workforce enhancement fee of .11
42.32percent on taxable wages as defined in section 268.035 subdivision 24, is assessed in
42.33addition to unemployment taxes under section 268.051. The workforce enhancement fee
42.34shall be paid on the same schedule and in the same manner as unemployment taxes under
43.1section 268.051. Late payment of fees under this section is subject to the same interest and
43.2penalty provisions as those that apply to unemployment taxes.
43.3    Subd. 5. Use of funds. (a) Of the funds collected under this section an amount equal
43.4to .01 percent on taxable wages must be deposited in the unemployment insurance worker
43.5initiative account created under subdivision 6.
43.6    (b) The remaining funds collected under this section must be deposited in the
43.7workforce development fund under section 116L.20 minus reimbursement for costs under
43.8section 116L.20, subdivision 2, paragraph (c).
43.9    Subd. 6. Account. The unemployment insurance worker initiative account is created
43.10as a special account in the special revenue fund in the state treasury. All funds deposited
43.11under subdivision 5 (a), and any interest earnings on those funds are appropriated to
43.12the commissioner to increase the amount of staff in the workforce centers to provide
43.13assistance and support to applicants for unemployment insurance. The commissioner shall
43.14give priority to providing sufficient staff in workforce centers located outside of the seven
43.15county metropolitan area. Any funds that remain unexpended in the first year are available
43.16for expenditure until December 31, 2011. Any unexpended funds in this account after
43.17December 31, 2011 shall be transferred to the unemployment insurance trust fund.
43.18    Subd. 7. Report. Beginning in 2010 and every two years thereafter, the
43.19commissioner shall report by January 15 to the standing committees of the senate and
43.20house of representatives having jurisdiction over unemployment insurance on the number
43.21of staff providing unemployment insurance assistance to applicants at each workforce
43.22center, the salaries paid to staff, and the amount of unemployment benefits paid to
43.23applicants who received unemployment insurance assistance at the workforce centers.
43.24    Subd. 8. Sunset. Except for the reporting requirements under subdivision 7, this
43.25section sunsets on December 31, 2011.
43.26EFFECTIVE DATE.This section is effective January 1, 2009.

43.27    Sec. 20. Minnesota Statutes 2006, section 273.135, subdivision 2, is amended to read:
43.28    Subd. 2. Reduction amount. The amount of the reduction authorized by
43.29subdivision 1 shall be:
43.30    (a) In the case of property located within a municipality as defined under section
43.31273.134, paragraph (a) , 66 80 percent of the tax, provided that the reduction shall not
43.32exceed the maximum amounts specified in paragraph (c).
43.33    (b) In the case of property located within the boundaries of a school district which
43.34qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the
44.1boundaries of a municipality which meets the qualifications prescribed in section 273.134,
44.2paragraph (a)
, 57 80 percent of the tax, provided that the reduction shall not exceed the
44.3maximum amounts specified in paragraph (c).
44.4    (c) The maximum reduction of the tax is $315.10 $354.50 on property described in
44.5paragraph paragraphs (a) and $289.80 on property described in paragraph (b).
44.6EFFECTIVE DATE.This section is effective for property taxes payable in 2009
44.7and thereafter.

44.8    Sec. 21. Minnesota Statutes 2006, section 298.2214, subdivision 1, is amended to read:
44.9    Subdivision 1. Creation of committee; purpose. A committee is created to advise
44.10the commissioner of Iron Range resources and rehabilitation board on providing higher
44.11education programs in cooperation with the University of Minnesota, the Minnesota State
44.12Colleges and Universities and private colleges in the taconite assistance area defined in
44.13section 273.1341. The committee is subject to section 15.059.
44.14EFFECTIVE DATE.This section is effective the day following final enactment.

44.15    Sec. 22. Minnesota Statutes 2006, section 298.2214, subdivision 2, as amended by
44.16Laws 2008, chapter 154, article 8, section 4, is amended to read:
44.17    Subd. 2. Iron Range Higher Education Committee; membership. The members
44.18of the committee shall consist of:
44.19    (1) one member appointed by the governor;
44.20    (2) one member appointed by the president of the University of Minnesota;
44.21    (3) four members of the Iron Range Resources and Rehabilitation Board appointed
44.22by the chair;
44.23    (4) the commissioner of Iron Range resources and rehabilitation one member
44.24appointed by the chancellor of the Minnesota State Colleges and Universities; and
44.25    (5) the president of the Northeast Higher Education District or its successor.
44.26EFFECTIVE DATE.This section is effective the day following final enactment.

44.27    Sec. 23. Minnesota Statutes 2006, section 298.223, subdivision 2, is amended to read:
44.28    Subd. 2. Administration. (a) The taconite area environmental protection fund shall
44.29be administered by the commissioner of the Iron Range Resources and Rehabilitation
44.30Board. The commissioner shall by September 1 of each year submit to the board a list
44.31of projects to be funded from the taconite area environmental protection fund, with such
44.32supporting information including description of the projects, plans, and cost estimates as
44.33may be necessary.
45.1    (b) Each year no less than one-half of the amounts deposited into the taconite
45.2environmental protection fund must be used for public works projects, including
45.3construction of sewer and water systems, as specified under subdivision 1, paragraph (c).
45.4The Iron Range Resources and Rehabilitation Board with a majority vote of the members,
45.5may waive the requirements of this paragraph.
45.6    (c) Upon approval by a majority of the members of the Iron Range Resources and
45.7Rehabilitation Board, this the list of projects approved under this subdivision shall be
45.8submitted to the governor by November 1 of each year. By December 1 of each year, the
45.9governor shall approve or disapprove, or return for further consideration, each project.
45.10Funds for a project may be expended only upon approval of the project by the board and
45.11governor. The commissioner may submit supplemental projects to the board and governor
45.12for approval at any time.
45.13EFFECTIVE DATE.This section is effective for distributions beginning in 2009.

45.14    Sec. 24. Minnesota Statutes 2007 Supplement, section 298.227, is amended to read:
45.15298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
45.16    For distributions prior to January 1, 2009, an amount equal to that distributed
45.17pursuant to each taconite producer's taxable production and qualifying sales under section
45.18298.28, subdivision 9a , shall be held by the Iron Range Resources and Rehabilitation
45.19Board in a separate taconite economic development fund for each taconite and direct
45.20reduced ore producer. Money from the fund for each producer shall be released by
45.21the commissioner after review by a joint committee consisting of an equal number of
45.22representatives of the salaried employees and the nonsalaried production and maintenance
45.23employees of that producer. The District 11 director of the United States Steelworkers of
45.24America, on advice of each local employee president, shall select the employee members.
45.25In nonorganized operations, the employee committee shall be elected by the nonsalaried
45.26production and maintenance employees. The review must be completed no later than
45.27six months after the producer presents a proposal for expenditure of the funds to the
45.28committee. The funds held pursuant to this section may be released only for acquisition
45.29of plant and stationary mining equipment and facilities for the producer or for research
45.30and development in Minnesota on new mining, or taconite, iron, or steel production
45.31technology, but only if the producer provides a matching expenditure to be used for
45.32the same purpose of at least 50 percent of the distribution based on 14.7 cents per ton
45.33beginning with distributions in 2002. Effective for proposals for expenditures of money
45.34from the fund beginning May 26, 2007, the commissioner may not release the funds before
45.35the next scheduled meeting of the board. If the board rejects a proposed expenditure, the
46.1funds must be deposited in the Taconite Environmental Protection Fund under sections
46.2298.222 to 298.225. If a producer uses money which has been released from the fund
46.3prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels,
46.4and the producer removes the piece of equipment from the taconite tax relief area defined
46.5in section 273.134 within ten years from the date of receipt of the money from the fund,
46.6a portion of the money granted from the fund must be repaid to the taconite economic
46.7development fund. The portion of the money to be repaid is 100 percent of the grant if the
46.8equipment is removed from the taconite tax relief area within 12 months after receipt of
46.9the money from the fund, declining by ten percent for each of the subsequent nine years
46.10during which the equipment remains within the taconite tax relief area. If a taconite
46.11production facility is sold after operations at the facility had ceased, any money remaining
46.12in the fund for the former producer may be released to the purchaser of the facility on
46.13the terms otherwise applicable to the former producer under this section. If a producer
46.14fails to provide matching funds for a proposed expenditure within six months after the
46.15commissioner approves release of the funds, the funds are available for release to another
46.16producer in proportion to the distribution provided and under the conditions of this section.
46.17Any portion of the fund which is not released by the commissioner within two years of its
46.18deposit in the fund shall be divided between the taconite environmental protection fund
46.19created in section 298.223 and the Douglas J. Johnson economic protection trust fund
46.20created in section 298.292 for placement in their respective special accounts. Two-thirds
46.21of the unreleased funds shall be distributed to the taconite environmental protection fund
46.22and one-third to the Douglas J. Johnson economic protection trust fund.

46.23    Sec. 25. Minnesota Statutes 2006, section 298.28, subdivision 6, is amended to read:
46.24    Subd. 6. Property tax relief. (a) In 2002 For distributions in 2009 and thereafter,
46.2533.9 40.6 cents per taxable ton, less any amount required to be distributed under
46.26paragraphs (b) and (c), or section 298.2961, subdivision 5, must be allocated to St. Louis
46.27County acting as the counties' fiscal agent, to be distributed as provided in sections
46.28273.134 to 273.136.
46.29    (b) If an electric power plant owned by and providing the primary source of power
46.30for a taxpayer mining and concentrating taconite is located in a county other than the
46.31county in which the mining and the concentrating processes are conducted, .1875 cent per
46.32taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
46.33    (c) If an electric power plant owned by and providing the primary source of power
46.34for a taxpayer mining and concentrating taconite is located in a school district other than
46.35a school district in which the mining and concentrating processes are conducted, .4541
47.1cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to
47.2the school district.
47.3EFFECTIVE DATE.This section is effective for property taxes payable in 2009
47.4and thereafter.

47.5    Sec. 26. Minnesota Statutes 2006, section 298.28, subdivision 9b, is amended to read:
47.6    Subd. 9b. Taconite environmental fund. Five eight cents per ton must be paid to
47.7the taconite environmental fund for use under section 298.2961, subdivision 4.
47.8EFFECTIVE DATE.This section is effective for production in 2008, distributions
47.9in 2009 and thereafter.

47.10    Sec. 27. Minnesota Statutes 2006, section 298.28, subdivision 9d, as added by Laws
47.112008, chapter 154, article 8, section 9, is amended to read:
47.12    Subd. 9d. Iron Range higher education account. Two five cents per taxable ton
47.13must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited
47.14in an Iron Range higher education account that is hereby created, to be used for higher
47.15education programs conducted at educational institutions in the taconite assistance area
47.16defined in section 273.1341. The Iron Range Higher Education committee under section
47.17298.2214 and the Iron Range Resources and Rehabilitation Board must approve all
47.18expenditures from the account.
47.19EFFECTIVE DATE.This section is effective for production in 2007, distributions
47.20in 2008, and thereafter.

47.21    Sec. 28. Minnesota Statutes 2006, section 298.292, subdivision 2, as amended by Laws
47.222008, chapter 154, article 8, section 11, is amended to read:
47.23    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
47.24fund may be used for the following purposes:
47.25    (1) to provide loans, loan guarantees, interest buy-downs and other forms of
47.26participation with private sources of financing, but a loan to a private enterprise shall be
47.27for a principal amount not to exceed one-half of the cost of the project for which financing
47.28is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
47.29lesser of eight percent or an interest rate three percentage points less than a full faith
47.30and credit obligation of the United States government of comparable maturity, at the
47.31time that the loan is approved;
47.32    (2) to fund reserve accounts established to secure the payment when due of the
47.33principal of and interest on bonds issued pursuant to section 298.2211;
48.1    (3) to pay in periodic payments or in a lump sum payment any or all of the interest
48.2on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
48.3or retrofitting heating facilities in connection with district heating systems or systems
48.4utilizing alternative energy sources;
48.5    (4) to invest in a venture capital fund or enterprise that will provide capital to other
48.6entities that are engaging in, or that will engage in, projects or programs that have the
48.7purposes set forth in subdivision 1. No investments may be made in a venture capital fund
48.8or enterprise unless at least two other unrelated investors make investments of at least
48.9$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
48.10J. Johnson economic protection trust fund may not exceed the amount of the largest
48.11investment by an unrelated investor in the venture capital fund or enterprise. For purposes
48.12of this subdivision, an "unrelated investor" is a person or entity that is not related to
48.13the entity in which the investment is made or to any individual who owns more than 40
48.14percent of the value of the entity, in any of the following relationships: spouse, parent,
48.15child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
48.16the value of all interests in it. For purposes of determining the limitations under this
48.17clause, the amount of investments made by an investor other than the Douglas J. Johnson
48.18economic protection trust fund is the sum of all investments made in the venture capital
48.19fund or enterprise during the period beginning one year before the date of the investment
48.20by the Douglas J. Johnson economic protection trust fund; and
48.21    (5) to purchase forest land in the taconite assistance area defined in section 273.1341
48.22to be held and managed as a public trust for the benefit of the area for the purposes
48.23authorized in section 298.22, subdivision 5a. Property purchased under this section may
48.24be sold upon approval by a majority vote of the board. The net proceeds must be deposited
48.25in the trust fund for the purposes and uses of this section.
48.26    Money from the trust fund shall be expended only in or for the benefit of the taconite
48.27assistance area defined in section 273.1341.
48.28EFFECTIVE DATE.This section is effective the day following final enactment.

48.29    Sec. 29. Minnesota Statutes 2006, section 298.2961, subdivision 2, is amended to read:
48.30    Subd. 2. Projects; approval. (a) Projects funded must be for:
48.31    (1) environmentally unique reclamation projects; or
48.32    (2) pit or plant repairs, expansions, or modernizations other than for a value added
48.33iron products plant; or
48.34    (3) haulage trucks and equipment and mining shovels.
49.1    (b) To be proposed by the board, a project must be approved by at least eight Iron
49.2Range Resources and Rehabilitation Board members. The money for a project may
49.3be spent only upon approval of the project by the governor. The board may submit
49.4supplemental projects for approval at any time.
49.5    (c) The board may require that it receive an equity percentage in any project to
49.6which it contributes under this section.

49.7    Sec. 30. Minnesota Statutes 2007 Supplement, section 326.48, is amended by adding a
49.8subdivision to read:
49.9    Subd. 7. Exceptions. This section does not apply to work done at iron ore mines, or
49.10at steel, taconite, or iron ore plants in Minnesota.
49.11EFFECTIVE DATE.This section is effective the day following final enactment.

49.12    Sec. 31. Minnesota Statutes 2006, section 341.21, as amended by Laws 2007, chapter
49.13135, article 3, section 30, is amended to read:
49.14341.21 DEFINITIONS.
49.15    Subdivision 1. Applicability. The definitions in this section apply to this chapter.
49.16    Subd. 2. Boxing. "Boxing" means the act of attack and defense with the fists, using
49.17padded gloves, that is practiced as a sport under the rules of the Association of Boxing
49.18Commissions, or equivalent. Where applicable, boxing includes tough person contests.
49.19    Subd. 2a. Combatant. "Combatant" means an individual who employs the act of
49.20attack and defense as a boxer, tough person, or mixed martial artist while engaged in
49.21a combative sport.
49.22    Subd. 2b. Combative sport. "Combative sport" means a sport that employs the act
49.23of attack and defense with the fists, with or without using padded gloves, or feet that is
49.24practiced as a sport under the rules of the Association of Boxing Commissions, unified
49.25rules for mixed martial arts, or their equivalent. Combative sports include professional
49.26boxing and professional and amateur tough person and professional and amateur mixed
49.27martial arts contests.
49.28    Subd. 3. Commission. "Commission" means the Minnesota Boxing Combative
49.29Sports Commission.
49.30    Subd. 4. Combative sports contest. "Combative sports contest" means any a
49.31professional boxing, a professional or amateur tough person, or a professional or amateur
49.32mixed martial art bout, competition contest, match, or exhibition.
49.33    Subd. 4a. Director. "Director" means the executive director of the commission.
50.1    Subd. 4b. HBV. "HBV" means the hepatitis B virus with the e-antigen present in
50.2the most recent blood test.
50.3    Subd. 4c. HCV. "HCV" means the hepatitis C virus.
50.4    Subd. 4d. HIV. "HIV" means the human immunodeficiency virus.
50.5    Subd. 4e. Individual. "Individual" means a living human being.
50.6    Subd. 4f. Mixed martial arts contest. "Mixed martial arts contest" means a contest
50.7between two or more individuals consisting of any combination of full contact martial art
50.8including, but not limited to, Muay Thai and Karate, kickboxing, wrestling, grappling,
50.9or other recognized martial art.
50.10    Subd. 4g. Person. "Person" means an individual, corporation, partnership, limited
50.11liability company, organization, or other business entity organized and existing under law,
50.12its officers and directors, or a person holding 25 percent or more of the ownership of a
50.13corporation that is authorized to do business under the laws of this state.
50.14    Subd. 5. Professional. "Professional" means any person who competes for any
50.15money prize or a prize that exceeds the value of $50 or teaches, pursues, or assists in the
50.16practice of boxing a combative sport as a means of obtaining a livelihood or pecuniary
50.17gain.
50.18    Subd. 6. Director. "Director" means the executive director of the commission.
50.19    Subd. 7. Tough person contest. "Tough person contest," including contests
50.20marketed as tough man and or tough woman contests, means any boxing match consisting
50.21a contest of one-minute rounds two-minute rounds consisting of not more than four rounds
50.22between two or more persons individuals who use their hands, or their feet, or both, in any
50.23manner. Tough person contest does not include kick boxing kickboxing or any recognized
50.24martial arts competition contest.
50.25    Subd. 8. Mixed martial arts. "Mixed martial arts" means any combination of
50.26boxing, kick boxing, wrestling, grappling, or other recognized martial arts.
50.27EFFECTIVE DATE.This section is effective the day following final enactment.

50.28    Sec. 32. Minnesota Statutes 2007 Supplement, section 341.22, is amended to read:
50.29341.22 BOXING COMBATIVE SPORTS COMMISSION.
50.30    There is hereby created the Minnesota Boxing Combative Sports Commission
50.31consisting of nine members who are citizens of this state. The members must be appointed
50.32by the governor. One member of the commission must be a retired judge of the Minnesota
50.33district court, Minnesota Court of Appeals, Minnesota Supreme Court, the United States
50.34District Court for the District of Minnesota, or the Eighth Circuit Court of Appeals, and
51.1at least three four members must have knowledge of the boxing industry. At least four
51.2members must have knowledge of the mixed martial arts industry. The governor shall
51.3make serious efforts to appoint qualified women to serve on the commission. Membership
51.4terms, compensation of members, removal of members, the filling of membership
51.5vacancies, and fiscal year and reporting requirements must be as provided in sections
51.6214.07 to 214.09. Unless otherwise provided, the provision of staff, administrative
51.7services, and office space; the review and processing of complaints; the setting of fees; and
51.8other provisions relating to commission operations must be are as provided in chapter 214.
51.9The purpose of the commission is to protect health, promote safety, and ensure fair events.
51.10EFFECTIVE DATE.This section is effective the day following final enactment.

51.11    Sec. 33. Minnesota Statutes 2006, section 341.23, is amended to read:
51.12341.23 LIMITATIONS.
51.13    No member of the Boxing commission may directly or indirectly promote a boxing
51.14contest, directly or indirectly engage in the managing of a boxer combatant, or have an
51.15interest in any manner in the proceeds from a boxing combative sport contest.
51.16EFFECTIVE DATE.This section is effective the day following final enactment.

51.17    Sec. 34. Minnesota Statutes 2007 Supplement, section 341.25, is amended to read:
51.18341.25 RULES.
51.19    (a) The commission may adopt rules that include standards for the physical
51.20examination and condition of boxers combatants and referees. Notwithstanding section
51.2114.125, the commission shall publish a notice of intent to adopt rules or a notice of hearing
51.22on or before September 1, 2008.
51.23    (b) The commission may adopt other rules necessary to carry out the purposes
51.24of this chapter, including, but not limited to, the conduct of boxing exhibitions, bouts,
51.25and fights, all combative sport contests and their manner, supervision, time, and place.
51.26Notwithstanding section 14.125, the commission shall publish a notice of intent to adopt
51.27rules or a notice of hearing on or before September 1, 2008.
51.28    (c) The commission must adopt unified rules for mixed martial arts contests.
51.29    (d) The commission may adopt the rules of the Association of Boxing Commissions,
51.30with amendments.
51.31EFFECTIVE DATE.This section is effective the day following final enactment.

51.32    Sec. 35. Minnesota Statutes 2006, section 341.26, is amended to read:
51.33341.26 MEETINGS.
52.1    The commission shall hold a regular meeting quarterly and may hold special
52.2meetings. Except as otherwise provided in law, all meetings of the commission must be
52.3open to the public and reasonable notice of the meetings must be given under chapter
52.413D. If compliance with section 13D.02 is impractical, the commission may conduct a
52.5meeting of its members by telephone or other electronic means so long as the following
52.6conditions are met:
52.7    (1) all members of the commission participating in the meeting, wherever their
52.8physical location, can hear one another and can hear all discussion and testimony;
52.9    (2) members of the public present at the regular meeting location of the commission
52.10can hear clearly all discussion and testimony and all votes of members of the commission
52.11and, if needed, receive those services required by sections 15.44 and 15.441;
52.12    (3) at least one member of the commission is physically present at the regular
52.13meeting location; and
52.14    (4) all votes are conducted by roll call, so each member's vote on each issue can be
52.15identified and recorded.
52.16    Each member of the commission participating in a meeting by telephone or other
52.17electronic means is considered present at the meeting for purposes of determining a
52.18quorum and participating in all proceedings.
52.19    If a telephone or other electronic means is used to conduct a regular, special, or
52.20emergency meeting, the commission, to the extent practical, shall allow a person to
52.21monitor the meeting electronically from a remote location. The commission may require
52.22the person making such a connection to pay for documented costs that the commission
52.23incurs as a result of the additional connection.
52.24    If a telephone or other electronic means is used to conduct a regular, special, or
52.25emergency meeting, the commission shall provide notice of the regular meeting location,
52.26of the fact that some members may participate by telephone or other electronic means, and
52.27that a person may monitor the meeting electronically from a remote location. The timing
52.28and method of providing notice is governed by section 13D.04.
52.29EFFECTIVE DATE.This section is effective the day following final enactment.

52.30    Sec. 36. Minnesota Statutes 2007 Supplement, section 341.27, is amended to read:
52.31341.27 COMMISSION DUTIES.
52.32    The commission shall:
52.33    (1) issue, deny, renew, suspend, or revoke licenses;
52.34    (2) make and maintain records of its acts and proceedings including the issuance,
52.35denial, renewal, suspension, or revocation of licenses;
53.1    (3) keep public records of the commission open to inspection at all reasonable times;
53.2    (4) assist the director in the development of rules to be implemented under this
53.3chapter;
53.4    (5) conform to the rules adopted under this chapter; and
53.5    (6) develop policies and procedures for regulating mixed martial arts.;
53.6    (7) immediately suspend an individual license for a medical condition, including but
53.7not limited to a medical condition resulting from an injury sustained during a match, bout,
53.8or contest that has been confirmed by the ringside physician. The medical suspension must
53.9be lifted after the commission receives written information from a physician licensed in
53.10the home state of the licensee indicating that the combatant may resume competition, and
53.11any other information that the commission may by rule require. Medical suspensions are
53.12not subject to section 214.10; and
53.13    (8) evaluate the performance and compensation of the director, including eligibility
53.14for salary increases, in keeping with state procedures.
53.15EFFECTIVE DATE.This section is effective the day following final enactment.

53.16    Sec. 37. [341.271] GIFT AUTHORITY.
53.17    The commission may apply for, receive, and expend in its own name grants and
53.18gifts of money consistent with the powers and duties specified in section 341.27. The
53.19commission may accept gifts, bequests, grants, payments for services, and other public
53.20and private money to help finance the activities of the commission.
53.21EFFECTIVE DATE.This section is effective the day following final enactment.

53.22    Sec. 38. Minnesota Statutes 2006, section 341.28, as amended by Laws 2007, chapter
53.23135, article 3, sections 34, 35, is amended to read:
53.24341.28 REGULATION OF BOXING COMBATIVE SPORT CONTESTS.
53.25    Subdivision 1. Regulatory authority; boxing combative sports. All professional
53.26boxing combative sport contests are subject to this chapter. Every contestant in a boxing
53.27contest shall wear padded gloves that weigh at least eight ounces. The commission shall,
53.28for every boxing combative sport contest:
53.29    (1) direct a commission member to be present; and
53.30    (2) direct the attending commission member to make a written report of the contest.
53.31    All boxing combative sport contests within this state must be conducted according to
53.32the requirements of this chapter.
53.33    Subd. 1a. Regulatory authority; boxing contests. All professional boxing contests
53.34are subject to this chapter. Every combatant in a boxing contest shall wear padded gloves
54.1that weigh at least eight ounces. Officials at all boxing contests must be licensed under
54.2this chapter.
54.3    Subd. 2. Regulatory authority; tough person contests. All professional and
54.4amateur tough person contests, including amateur tough person contests, are subject to
54.5this chapter. All tough person contests are subject to American Association of Boxing
54.6Commission (ABC) Commissions rules. Every contestant in a tough person contest shall
54.7have a physical examination prior to their bouts. Every contestant in a tough person
54.8contest shall wear padded gloves that weigh at least 12 ounces. All tough person bouts are
54.9limited to two-minute rounds and a maximum of four total rounds. Officials at all tough
54.10person bouts contests shall be licensed under this chapter.
54.11    Subd. 3. Regulatory authority; mixed martial arts contests; similar sporting
54.12events. All professional and amateur mixed martial arts, ultimate fight contests, and
54.13similar sporting events are subject to this chapter and all officials at these events must be
54.14licensed under this chapter.
54.15EFFECTIVE DATE.This section is effective the day following final enactment.

54.16    Sec. 39. Minnesota Statutes 2006, section 341.29, is amended to read:
54.17341.29 JURISDICTION OF COMMISSION.
54.18    The commission shall:
54.19    (1) have sole direction, supervision, regulation, control, and jurisdiction over all
54.20boxing combative sports contests and tough person contests that are held within this state
54.21unless a contest is exempt from the application of this chapter under federal law;
54.22    (2) have sole control, authority, and jurisdiction over all licenses required by this
54.23chapter; and
54.24    (3) grant a license to an applicant if, in the judgment of the commission, the financial
54.25responsibility, experience, character, and general fitness of the applicant are consistent
54.26with the public interest, convenience, or necessity and the best interests of boxing
54.27combative sports and conforms with this chapter and the commission's rules.
54.28EFFECTIVE DATE.This section is effective the day following final enactment.

54.29    Sec. 40. Minnesota Statutes 2006, section 341.30, is amended to read:
54.30341.30 LICENSURE REQUIREMENTS.
54.31    Subdivision 1. Licensure; individuals. All referees, judges, matchmakers,
54.32promoters, trainers, ring announcers, timekeepers, ringside physicians, boxers combatants,
54.33boxers' managers, and boxers' seconds are required to be licensed by the commission. The
55.1commission shall not permit any of these persons to participate in the holding or conduct
55.2of any boxing combative sport contest unless the commission has first issued the person
55.3a license.
55.4    Subd. 2. Entity licensure. Before participating in the holding or conduct of any
55.5boxing combative sport contest, a corporation, partnership, limited liability company, or
55.6other business entity organized and existing under law, its officers and directors, and
55.7any person holding 25 percent or more of the ownership of the corporation shall obtain
55.8a license from the commission and must be authorized to do business under the laws of
55.9this state.
55.10    Subd. 3. Background investigation. The commission may require referees, judges,
55.11matchmakers, promoters, and boxers combatants to furnish fingerprints and background
55.12information under commission rules before licensure. The commission shall charge a fee
55.13for receiving fingerprints and background information in an amount determined by the
55.14commission. The commission may require referees, judges, matchmakers, promoters,
55.15and boxers combatants to furnish fingerprints and background information before
55.16license renewal. The fee may include a reasonable charge for expenses incurred by the
55.17commission or the Department of Public Safety. For this purpose, the commission and the
55.18Department of Public Safety may enter into an interagency agreement.
55.19    Subd. 4. Prelicensure requirements. (a) Before the commission issues a license to
55.20a promoter, matchmaker, corporation, or other business entity, the applicant shall:
55.21    (1) provide the commission with a copy of any agreement between a contestant
55.22combatant and the applicant that binds the applicant to pay the contestant combatant a
55.23certain fixed fee or percentage of the gate receipts;
55.24    (2) show on the application the owner or owners of the applicant entity and the
55.25percentage of interest held by each owner holding a 25 percent or more interest in the
55.26applicant;
55.27    (3) provide the commission with a copy of the latest financial statement of the
55.28entity; and
55.29    (4) provide the commission with a copy or other proof acceptable to the commission
55.30of the insurance contract or policy required by this chapter.
55.31    (b) Before the commission issues a license to a promoter, the applicant shall deposit
55.32with the commission a cash bond or surety bond in an amount set by the commission.
55.33The bond shall be executed in favor of this state and shall be conditioned on the faithful
55.34performance by the promoter of the promoter's obligations under this chapter and the rules
55.35adopted under it. An applicant for a license as a promoter shall submit an application a
55.36minimum of six weeks before the combative sport contest is scheduled to occur.
56.1    (c) Before the commission issues a license to a boxer combatant, the applicant
56.2shall submit to the commission the results of a current medical examination on forms
56.3furnished or approved by the commission. The medical examination must include an
56.4ophthalmological and neurological examination, and documentation of test results for
56.5HBV, HCV, and HIV, and any other blood test as the commission by rule may require.
56.6The ophthalmological examination must be designed to detect any retinal defects or other
56.7damage or condition of the eye that could be aggravated by boxing combative sports. The
56.8neurological examination must include an electroencephalogram or medically superior
56.9test if the boxer combatant has been knocked unconscious in a previous boxing or other
56.10athletic competition contest. The commission may also order an electroencephalogram
56.11or other appropriate neurological or physical examination before any contest, match, or
56.12exhibition if it determines that the examination is desirable to protect the health of the
56.13boxer. combatant. The commission shall not issue a license to an applicant submitting
56.14positive test results for HBV, HCV, or HIV.
56.15EFFECTIVE DATE.This section is effective the day following final enactment.

56.16    Sec. 41. Minnesota Statutes 2006, section 341.32, as amended by Laws 2007, chapter
56.17135, article 3, section 36, is amended to read:
56.18341.32 LICENSE FEES; EXPIRATION; RENEWAL.
56.19    Subdivision 1. Annual licensure. The commission may establish and issue annual
56.20licenses subject to the collection of advance fees by the commission for promoters,
56.21matchmakers, managers, judges, referees, ring announcers, ringside physicians,
56.22timekeepers, boxers combatants, boxers' trainers, boxers' seconds, business entities filing
56.23for a license to participate in the holding of any boxing contest, and officers, directors, or
56.24other persons affiliated with the business entity.
56.25    Subd. 2. Expiration and renewal. A license issued after July 1, 2007, is valid for
56.26one year from the date it is issued and may be renewed by filing an application for renewal
56.27with the commission and payment of the license fee fees established in section 341.321.
56.28An application for a license and renewal of a license must be on a form provided by the
56.29commission. There is a 30-day grace period during which a license may be renewed if a
56.30late filing penalty fee equal to the license fee is submitted with the regular license fee.
56.31A licensee that files late shall not conduct any activity regulated by this chapter until the
56.32commission has renewed the license. If the licensee fails to apply to the commission within
56.33the 30-day grace period, the licensee must apply for a new license under subdivision 1.
56.34EFFECTIVE DATE.This section is effective the day following final enactment.

57.1    Sec. 42. Minnesota Statutes 2007 Supplement, section 341.321, is amended to read:
57.2341.321 FEE SCHEDULE.
57.3    (a) The fee schedule for professional licenses issued by the Minnesota Boxing
57.4commission is as follows:
57.5    (1) referees, $45 $25 for each initial license and each renewal;
57.6    (2) promoters, $400 for each initial license and each renewal;
57.7    (3) judges and knockdown judges, $45 $25 for each initial license and each renewal;
57.8    (4) trainers, $45 $25 for each initial license and each renewal;
57.9    (5) ring announcers, $45 $25 for each initial license and each renewal;
57.10    (6) boxers' seconds, $45 $25 for each initial license and each renewal;
57.11    (7) timekeepers, $45 $25 for each initial license and each renewal;
57.12    (8) boxers combatant, $45 $25 for each initial license and each renewal;
57.13    (9) managers, $45 $25 for each initial license and each renewal; and
57.14    (10) ringside physicians, $45 $25 for each initial license and each renewal.
57.15In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
57.162, if applicable, an individual who applies for a combatant license on the same day the
57.17combative sporting event is held shall pay a fee of $100 at the time the application is
57.18submitted.
57.19    (b) The fee schedule for amateur licenses issued by the commission is as follows:
57.20    (1) referees, $10 for each initial license and each renewal;
57.21    (2) promoters, $100 for each initial license and each renewal;
57.22    (3) judges and knockdown judges, $10 for each initial license and each renewal;
57.23    (4) trainers, $10 for each initial license and each renewal;
57.24    (5) ring announcers, $10 for each initial license and each renewal;
57.25    (6) seconds, $10 for each initial license and each renewal;
57.26    (7) timekeepers, $10 for each initial license and each renewal;
57.27    (8) combatant, $10 for each initial license and each renewal;
57.28    (9) managers, $10 for each initial license and each renewal; and
57.29    (10) ringside physicians, $10 for each initial license and each renewal.
57.30    (c) The commission shall establish and assess an event a contest fee for each sporting
57.31event combative sport contest. The event contest fee is set at a minimum of $1,500 per
57.32event or a percentage not more than four percent of the gross ticket sales as determined by
57.33the commission when the sporting event combative sport contest is scheduled, except that
57.34the amateur combative sport contest fee shall be $150. The commission shall consider the
57.35size and type of venue when establishing a contest fee. The commission may establish the
58.1maximum number of complimentary tickets allowed for each event by rule. An amateur
58.2combative sport contest fee is nonrefundable.
58.3    (c) (d) All fees collected by the Minnesota Boxing commission must be deposited in
58.4the Boxing commission account in the special revenue fund.
58.5EFFECTIVE DATE.This section is effective July 1, 2008.

58.6    Sec. 43. Minnesota Statutes 2006, section 341.33, is amended to read:
58.7341.33 PHYSICAL EXAMINATION REQUIRED; FEES.
58.8    Subdivision 1. Examination by physician. All boxers and referees combatants
58.9must be examined by a physician licensed by this state within three 36 hours before
58.10entering the ring, and the examining physician shall immediately file with the commission
58.11a written report of the examination. The physician's examination shall may report on the
58.12condition of the boxer's combatant's heart and general physical and general neurological
58.13condition. The physician's report may record the condition of the boxer's combatant's
58.14nervous system and brain as required by the commission. The physician may prohibit the
58.15boxer combatant from entering the ring if, in the physician's professional opinion, it is in
58.16the best interest of the boxer's combatant's health. The cost of the examination is payable
58.17by the person or entity conducting the contest or exhibition.
58.18    Subd. 2. Attendance of physician. A person holding or sponsoring a boxing contest
58.19combative sport contest, shall have in attendance a physician licensed by this state. The
58.20commission may establish a schedule of fees to be paid to each attending physician by the
58.21person holding or sponsoring the contest.
58.22EFFECTIVE DATE.This section is effective the day following final enactment.

58.23    Sec. 44. Minnesota Statutes 2006, section 341.34, subdivision 1, is amended to read:
58.24    Subdivision 1. Required insurance. The commission shall:
58.25    (1) require insurance coverage for a boxer combatant to provide for medical,
58.26surgical, and hospital care for injuries sustained in the ring in an amount of at least
58.27$20,000 $10,000 and payable to the boxer combatant as beneficiary; and
58.28    (2) require life insurance for a boxer combatant in the amount of at least $20,000
58.29$10,000 payable in case of accidental death resulting from injuries sustained in the ring.
58.30EFFECTIVE DATE.This section is effective the day following final enactment.

58.31    Sec. 45. Minnesota Statutes 2006, section 341.35, is amended to read:
58.32341.35 PENALTIES FOR NONLICENSED EXHIBITIONS CONTESTS.
59.1    Any person or persons who send or cause to be sent, published, or otherwise made
59.2known, any challenge to fight what is commonly known as a prize fight, or engage in any
59.3public boxing or sparring combative sport match or contest, with or without gloves, for
59.4any prize, reward, or compensation, or for which any admission fee is charged directly or
59.5indirectly, or go into training preparatory for the fight, exhibition, or contest, or act as a
59.6trainer, aider, abettor, backer, umpire, referee, second, surgeon, assistant, or attendant at
59.7the fight, exhibition, or contest, or in any preparation for same, and any owner or lessee of
59.8any ground, building, or structure of any kind permitting the same to be used for any fight,
59.9exhibition, or contest, is guilty of a misdemeanor unless a license the licenses required for
59.10the holding of the fight, exhibition, or contest has have been issued by the commission in
59.11compliance with the rules adopted by it.
59.12EFFECTIVE DATE.This section is effective the day following final enactment.

59.13    Sec. 46. [341.355] PENALTIES.
59.14    When the commission finds that a person has violated one or more provisions of
59.15any statute, rule, or order that the commission is empowered to regulate, enforce, or
59.16issue, the commission may impose, for each violation, a civil penalty of up to $10,000
59.17for each violation, or a civil penalty that deprives the person of any economic advantage
59.18gained by the violation, or both.
59.19EFFECTIVE DATE.This section is effective the day following final enactment.

59.20    Sec. 47. Minnesota Statutes 2006, section 341.37, is amended to read:
59.21341.37 APPROPRIATION.
59.22    A Boxing commission account is created in the special revenue fund. Money in the
59.23account is annually appropriated to the Boxing commission for the purposes of conducting
59.24its statutory responsibilities and obligations.
59.25EFFECTIVE DATE.This section is effective the day following final enactment.

59.26    Sec. 48. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 3,
59.27is amended to read:
59.28    Subd. 3. Program administration. (a) The authority shall provide supplemental
59.29assistance, as provided in subdivision 5a to governmental units:
59.30    (1) whose projects are listed on the Pollution Control Agency's project priority list;
59.31    (2) that demonstrate their projects are a cost-effective solution to an existing
59.32environmental or public health problem; and
60.1    (3) whose projects are approved by the USDA/RECD or certified by the
60.2commissioner of the Pollution Control Agency.
60.3    (b) For a governmental unit receiving grant funding from the USDA/RECD,
60.4applications must be made to the USDA/RECD with additional information submitted to
60.5the authority as required by the authority. Eligible project costs and affordability criteria
60.6shall be determined by the USDA/RECD.
60.7    (c) For a governmental unit not receiving grant funding from the USDA/RECD,
60.8application must be made to the authority on forms prescribed by the authority for the
60.9clean water revolving fund program with additional information as required by the
60.10authority. In accordance with section 116.182, the Pollution Control Agency shall:
60.11    (1) calculate the essential project component percentage which must be multiplied
60.12by the total project cost to determine the eligible project cost; and
60.13    (2) review and certify approved projects to the authority.
60.14    (d) At the time funds are appropriated under this section, Each fiscal year the
60.15authority shall make funds available for projects based on their ranking on the Pollution
60.16Control Agency's project priority list. The authority shall reserve supplemental assistance
60.17funds for projects in order of their rankings on the Pollution Control Agency's project
60.18priority list and a project when the applicant receives a funding commitment from the
60.19United States Department of Agriculture Rural Development (USDA/RECD) or submits
60.20plans and specifications to the Pollution Control Agency. Funds must be reserved in an
60.21amount based on their most recent the project cost estimates estimate submitted to the
60.22authority or prior to the appropriation of the funds and awarded in the amount reserved
60.23or an amount based on the as-bid costs, whichever is less.

60.24    Sec. 49. Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 5a,
60.25is amended to read:
60.26    Subd. 5a. Type and amount of assistance. (a) For a governmental unit receiving
60.27grant funding from the USDA/RECD, the authority shall provide assistance in the form
60.28of a grant of up to one-half 65 percent of the eligible grant amount need determined by
60.29USDA/RECD. A governmental unit may not receive a grant under this paragraph for more
60.30than $4,000,000 or $15,000 per existing connection, whichever is less, unless specifically
60.31approved by law. In the case of a sanitary district or other multijurisdictional project for
60.32which the USDA/RECD is unable to fully fund up to one-half its share of the eligible grant
60.33amount need, the authority may provide up to an additional $1,000,000 for each additional
60.34governmental unit participating up to a maximum of $8,000,000 or $15,000 per existing
61.1connection, whichever is less, but not to exceed the maximum grant level determined by
61.2the USDA/RECD as needed to keep the project affordable.
61.3    (b) For a governmental unit not receiving grant funding from the USDA/RECD,
61.4the authority shall provide assistance in the form of a loan for the eligible project costs
61.5plus the outstanding balance on any existing wastewater system debt that together exceed
61.6five percent of the market value of properties in the project service area, less the amount of
61.7any other grant funding received by the governmental unit for the project. A governmental
61.8unit may not receive a loan under this paragraph for more than $4,000,000 or $15,000 per
61.9existing connection, whichever is less, unless specifically approved by law. In the case of
61.10a sanitary district or other multijurisdictional project, the authority may provide a loan
61.11under this paragraph for up to an additional $1,000,000 for each additional municipality
61.12participating up to a maximum of $8,000,000 or $15,000 per existing connection,
61.13whichever is less, unless specifically approved by law. A loan under this paragraph must
61.14bear no interest, must be repaid as provided in subdivision 7, and must only be provided in
61.15conjunction with a loan from the clean water revolving fund under section 446A.07.
61.16    (c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental unit
61.17receiving supplemental assistance under this section after January 1, 2002, if the authority
61.18determines that the governmental unit's construction and installation costs are significantly
61.19increased due to geological conditions of crystalline bedrock or karst areas and discharge
61.20limits that are more stringent than secondary treatment, the authority shall provide
61.21assistance in the form of half grant and half loan. Assistance from the authority may not
61.22be more than $25,000 per existing connection. Any additional grant amount received for
61.23the same project must be used to reduce the amount of the governmental unit's loan from
61.24the clean water pollution control revolving fund that exceeds five percent of the market
61.25value of properties in the project service area.

61.26    Sec. 50. Minnesota Statutes 2007 Supplement, section 446A.086, is amended to read:
61.27446A.086 STATE MAY GUARANTEE COUNTY GOVERNMENTAL UNIT
61.28BUILDING DEBT; REPAYMENT.
61.29    Subdivision 1. Definitions. (a) As used in this section, the following terms have
61.30the meanings given.
61.31    (b) "Authority" means the Minnesota Public Facilities Authority.
61.32    (c) "Commissioner" means the commissioner of finance.
61.33    (d) "Debt obligation" means:
61.34    (1) a general obligation bond issued by a county, a bond to which the general
61.35obligation of a county is pledged under section 469.034, subdivision 2, or a bond payable
62.1from a county lease obligation under section 641.24, to provide funds for the construction
62.2of:
62.3    (1) (i) jails;
62.4    (2) (ii) correctional facilities;
62.5    (3) (iii) law enforcement facilities;
62.6    (4) (iv) social services and human services facilities;
62.7    (5) (v) solid waste facilities; or
62.8    (6) (vi) qualified housing development projects as defined in section 469.034,
62.9subdivision 2; or
62.10    (2) a general obligation bond issued by a governmental unit and acquired under the
62.11credit enhanced bond program established under section 446A.087.
62.12    Subd. 2. Application. (a) This section provides a state guarantee of the payment of
62.13principal and interest on debt obligations if:
62.14    (1) the obligations are issued after June 30, 2000;
62.15    (2) application to the Public Facilities Authority is made before issuance; and
62.16    (3) the obligations are covered by an agreement meeting the requirements of
62.17subdivision 3.
62.18    (b) Applications to be covered by the provisions of this section must be made in a
62.19form and contain the information prescribed by the authority. Applications are subject to a
62.20fee of $500 for the first each bond issue requested by the county and $250 for each bond
62.21issue thereafter or applicable fees under section 446A.087.
62.22    (c) Application fees paid under this section must be deposited in a separate county
62.23credit enhancement bond guarantee account in the general fund. Money in the county
62.24credit enhancement bond guarantee account is appropriated to the authority for purposes
62.25of administering this section.
62.26    (d) Neither the authority nor the commissioner is required to promulgate
62.27administrative rules under this section and the procedures and requirements established by
62.28the authority or commissioner under this section are not subject to chapter 14.
62.29    Subd. 3. Agreement. (a) For specified debt obligations of a county to be covered
62.30by this section, the county governmental unit must enter an agreement with the authority
62.31obligating the county governmental unit to be bound by this section.
62.32    (b) This agreement must be in a form prescribed by the authority and contain any
62.33provisions required by the authority, including, at least, an obligation to:
62.34    (1) deposit with the paying agent three days before the date on which the payment is
62.35due an amount sufficient to make that payment or ten days prior to the date a payment is
62.36due on revenue bonds issued by the authority under section 446A.087;
63.1    (2) notify the authority, if the county governmental unit will be unable to make all
63.2or a portion of the payment; and
63.3    (3) include a provision in the bond resolution and county's agreement with the paying
63.4agent for the debt obligation that requires the paying agent to inform the commissioner if
63.5it becomes aware of a default or potential default in the payment of principal or interest
63.6on that issue or if, on the day two business days before the date a payment is due on that
63.7issue, there are insufficient funds to make the payment on deposit with the paying agent.
63.8    (c) Funds invested in a refunding escrow account established under section 475.67
63.9that are to become available to the paying agent on a principal or interest payment date are
63.10deemed to be on deposit with the paying agent three business days before the payment date.
63.11    (d) The provisions of an agreement under this subdivision are binding as to an issue
63.12as long as any debt obligation of the issue remains outstanding.
63.13    (e) This section and the obligations of the state under this section are not a public debt
63.14of the state under article XI, section 4, of the Minnesota Constitution, and the legislature
63.15may, at any time, choose not to appropriate amounts under subdivision 4, paragraph (b).
63.16    Subd. 4. Notifications; payment; appropriation. (a) After receipt of a notice of a
63.17default or potential default in payment of principal or interest in debt obligations covered
63.18by this section or an agreement under this section, and after consultation with the county,
63.19governmental unit and the paying agent, and after verification of the accuracy of the
63.20information provided, the authority shall notify the commissioner of the potential default.
63.21The notice must include a final figure as to the amount due that the county governmental
63.22unit will be unable to repay on the date due.
63.23    (b) Upon receipt of this notice from the authority, the commissioner shall issue a
63.24warrant and authorize the authority to pay to the bond holders or paying agent for the
63.25debt obligation the specified amount on or before the date due. The amounts needed
63.26for the purposes of this subdivision are annually appropriated to the authority from the
63.27general fund.
63.28    Subd. 5. Interest on state paid amount. If the state has paid part or all of the
63.29principal or interest due on a county's debt obligation, the amount paid bears interest
63.30from the date paid by the state until the date of repayment. The interest rate is the
63.31commissioner's invested cash rate as it is certified by the commissioner. Interest only
63.32accrues on the amounts paid and outstanding less the reduction in aid under subdivision 7
63.33and other payments received from the county governmental unit.
63.34    Subd. 6. Pledge of county's governmental unit's full faith and credit. If the
63.35state has paid part or all of the principal or interest due on a county's debt obligation,
63.36the county's governmental unit's pledge of its full faith and credit and unlimited taxing
64.1powers to repay the principal and interest due on those debt obligations becomes, without
64.2an election or the requirement of a further authorization, a pledge of the full faith and
64.3credit and unlimited taxing powers of the county governmental unit to repay to the state
64.4the amount paid, with interest. Amounts paid by the state must be repaid in the order
64.5in which the state payments were made.
64.6    Subd. 7. Aid reduction for repayment. (a) Except as provided in paragraph (b),
64.7the commissioner may reduce, by the amount paid by the state under this section on behalf
64.8of the county governmental unit, plus the interest due on the state payments, the county
64.9program local government aid under section 477A.0124 chapter 477A. The amount of any
64.10aid reduction reverts from the appropriate account to the state general fund.
64.11    (b) If, after review of the financial situation of the county governmental unit, the
64.12authority advises the commissioner that a total reduction of the aids would cause an
64.13undue hardship on the county governmental unit, the authority, with the approval of the
64.14commissioner, may establish a different schedule for reduction of aids to repay the state.
64.15The amount of aids to be reduced are decreased by any amounts repaid to the state by the
64.16county governmental unit from other revenue sources.
64.17    Subd. 8. Tax levy for repayment. (a) With the approval of the authority, a county
64.18governmental unit may levy in the year the state makes a payment under this section an
64.19amount up to the amount necessary to provide funds for the repayment of the amount
64.20paid by the state plus interest through the date of estimated repayment by the county
64.21governmental unit. The proceeds of this levy may be used only for this purpose unless
64.22they exceed the amount actually due. Any excess must be used to repay other state
64.23payments made under this section or must be deposited in the debt redemption fund of
64.24the county governmental unit. The amount of aids to be reduced to repay the state are
64.25decreased by the amount levied.
64.26    (b) If the state is not repaid in full for a payment made under this section by
64.27November 30 of the calendar year following the year in which the state makes the
64.28payment, the authority shall require the county governmental unit to certify a property
64.29tax levy in an amount up to the amount necessary to provide funds for repayment of the
64.30amount paid by the state plus interest through the date of estimated repayment by the
64.31county governmental unit. To prevent undue hardship, the authority may allow the county
64.32governmental unit to certify the levy over a five-year period. The proceeds of the levy
64.33may be used only for this purpose unless they are in excess of the amount actually due, in
64.34which case the excess must be used to repay other state payments made under this section
64.35or must be deposited in the debt redemption fund of the county governmental unit. If the
65.1authority orders the county governmental unit to levy, the amount of aids reduced to repay
65.2the state are decreased by the amount levied.
65.3    (c) A levy under this subdivision is an increase in the levy limits of the county
65.4governmental unit for purposes of section 275.065, subdivision 6, and must be explained
65.5as a specific increase at the meeting required under that provision.
65.6    Subd. 9. Mandatory plan; technical assistance. If the state makes payments on
65.7behalf of a county governmental unit under this section or the county governmental unit
65.8defaults in the payment of principal or interest on an outstanding debt obligation, it must
65.9submit a plan to the authority for approval specifying the measures it intends to implement
65.10to resolve the issues which led to its inability to make the payment and to prevent
65.11further defaults. If the authority determines that a county's governmental unit's plan is
65.12not adequate, the authority shall notify the county governmental unit that the plan has
65.13been disapproved, the reasons for the disapproval, and that the state will not make future
65.14payments under this section for debt obligations of the affected county governmental unit
65.15issued after the date specified in that notice until its plan is approved. The authority may
65.16also notify the county governmental unit that until its plan is approved, aids due the county
65.17governmental unit will be withheld after a date specified in the notice.
65.18    Subd. 10. Continuing disclosure agreements. The authority may enter into written
65.19agreements or contracts relating to the continuing disclosure of information needed to
65.20facilitate the ability of counties governmental units to issue debt obligations according
65.21to federal securities laws, rules, and regulations, including securities and exchange
65.22commission rules and regulations, section 240.15c2-12. The agreements or contracts may
65.23be in any form the authority deems reasonable and in the state's best interests.

65.24    Sec. 51. [446A.087] CREDIT ENHANCED BOND PROGRAM.
65.25    Subdivision 1. Establishment of program. A credit enhanced bond program is
65.26established for the purposes set forth in subdivision 2.
65.27    Subd. 2. Purpose. The purpose of the credit enhanced bond program is to
65.28provide loans to governmental units through the purchase of general obligation bonds
65.29of governmental units issued to finance all or a portion of the costs of a project. The
65.30program shall include providing credit enhancement to the general obligation bonds of the
65.31governmental unit through the guarantee program as provided in section 446A.086. The
65.32authority shall obtain funds to make the loans authorized pursuant to this section through
65.33the issuance of its revenue bonds payable from loan repayments pledged to the bonds, and
65.34such other sources and security as are specifically pledged by the authority.
66.1    Subd. 3. Definitions. (a) Terms used in this section have the meanings given to
66.2them in this subdivision.
66.3    (b) "Applicant" means any governmental unit applying to the authority for a loan
66.4pursuant to this section.
66.5    (c) "Borrower" means any governmental unit that has entered into a commitment
66.6for the sale of its general obligation bonds to the authority pursuant to this section and
66.7subsequently sells its general obligation bonds to the authority and enters into a regulatory
66.8agreement.
66.9    (d) "Commitment" means a written agreement between a governmental unit and the
66.10authority obligating the governmental unit to deliver its general obligation bonds to the
66.11authority on a date in the future evidencing a loan pursuant to this section and to enter
66.12into a regulatory agreement with the authority, all upon the terms and conditions set
66.13forth in the commitment.
66.14    (e) "Eligible cost" means any cost of a project authorized by law to be financed from
66.15the proceeds of general obligation bonds of a governmental unit.
66.16    (f) "General obligation bonds" means bonds or notes secured by the full faith and
66.17credit and unlimited taxing powers of a governmental unit.
66.18    (g) "Project" means the construction, improvement, or rehabilitation of:
66.19    (1) wastewater facilities;
66.20    (2) drinking water facilities;
66.21    (3) storm water facilities;
66.22    (4) streets, street lighting, curbs, gutters, and sidewalks;
66.23    (5) energy conservation or alternative energy sources for use in public buildings or
66.24facilities;
66.25    (6) telecommunications facilities;
66.26    (7) public safety buildings including those providing police and fire protection; or
66.27    (8) any publicly owned building or infrastructure improvement that has received
66.28partial funding from grants awarded by the commissioner of employment and economic
66.29development related to redevelopment, contaminated site cleanup, bioscience, small cities
66.30development programs, and rural business infrastructure programs.
66.31    (h) "Regulatory agreement" means a written agreement entered into by the authority
66.32and a borrower in connection with the purchase of the borrower's general obligation bonds
66.33by the authority pursuant to this section.
66.34    Subd. 4. Establishment of fund and accounts. A credit enhancement bond
66.35program fund is established for the purposes described in subdivision 2. Other accounts
66.36may be established in the fund as necessary for its management and administration.
67.1Money in the fund is annually appropriated to the authority and does not lapse. The fund
67.2must be credited with investment income, and with repayments of principal and interest,
67.3except for fees assessed under section 446A.04, subdivisions 5 and 15.
67.4    Subd. 5. Management of fund and accounts. The authority shall manage and
67.5administer the credit enhancement bond program fund and individual accounts in the fund.
67.6For those purposes, the authority may exercise all powers provided in this chapter.
67.7    Subd. 6. Applications. (a) Applicants for participation in the credit enhancement
67.8bond program must submit an application to the authority on forms prescribed by the
67.9authority. The applicant shall provide information customary to that needed for the
67.10disclosure purposes in issuing general obligation bonds in the market, in addition to the
67.11following information:
67.12    (1) the total estimated cost of the project and the amount of general obligation
67.13bond proceeds sought;
67.14    (2) other sources of funding if the general obligation bond proceeds do not cover
67.15the entire costs identified;
67.16    (3) the proposed sources of funds to be used for repayment of the general obligation
67.17bonds;
67.18    (4) information showing the applicant's financial status and ability of the applicant
67.19to repay loans;
67.20    (5) the proposed term and principal repayment schedule for the general obligation
67.21bonds of the applicant; and
67.22    (6) the statutory authorization for the applicant to issue such general obligation
67.23bonds, together with a statement that the statutory provision authorizes the use of proceeds
67.24of such general obligation bonds to pay the costs of a project.
67.25    (b) The authority may establish deadlines or time periods for the submission of
67.26applications to facilitate funding loans from the proceeds of a specific bond issue proposed
67.27or previously issued by the authority, or the authority may accept applications from time
67.28to time.
67.29    (c) Each application must be complete and accurate to be considered delivered to
67.30and received by the authority or to be considered as having met any deadline established
67.31by the authority with respect to an application period. If any application is determined by
67.32the authority to be incomplete or inaccurate, the authority shall notify the applicant and
67.33specify the missing or inaccurate information.
67.34    (d) The executive director and the staff of the authority shall evaluate the applications
67.35to determine if the application should be accepted or rejected by the authority.
68.1    (e) The authority is not obligated to accept any application including those complete
68.2and accurate and submitted by any specified deadline for submission if the authority
68.3determines that it is not practicable to fund the loan for any reason including, but not
68.4limited to, the creditworthiness of the applicant, the proposed loan amount, the term
68.5and repayment schedule, the sources of funding available to the authority, and current
68.6market conditions. Upon acceptance and approval of an application by the authority, the
68.7authority may require that the applicant authorize, execute, and deliver a commitment to
68.8the authority within such time period specified by the authority in its acceptance of the
68.9application. The authority may reject an approved application for failure by the applicant
68.10to authorize, execute, and deliver a commitment by the specified deadline.
68.11    Subd. 7. Loan terms and conditions. (a) The terms and conditions of loans
68.12provided by the authority pursuant to the credit enhanced bond program are as provided
68.13by this section, any applicable bond resolution or series bond resolution of the authority,
68.14any trust indenture pursuant to which any series of bonds of the authority are issued,
68.15the regulatory agreement, the commitment and the general obligation bond, and the
68.16authorizing resolution of the borrower.
68.17    (b) The loan must be made by the authority through its purchase of the general
68.18obligation bond of the borrower. The borrower shall provide the authority with the
68.19opinion of nationally recognized bond counsel as to the valid authorization, issuance, and
68.20enforceability of the general obligation bond of the borrower, and the exclusion of interest
68.21thereon from gross income for the purposes of federal taxation, subject to customary
68.22qualifications. The general obligation bond of the borrower may pledge other specified
68.23sources of revenues for repayment to the extent permitted or required by law, in addition
68.24to the full faith and credit and unlimited taxing powers of the borrower.
68.25    (c) The authority may disburse the proceeds of the loan as a single payment for the
68.26general obligation bond or from time to time pursuant to draw requests if the general
68.27obligation bond of the borrower is structured as a periodic drawdown bond. In the event
68.28the authority pays for the general obligation bond in a single payment, the borrower
68.29shall establish a project account and disburse the proceeds of its general obligation bond
68.30solely for costs of the project approved in its application pursuant to such additional
68.31requirements specified in the regulatory agreement.
68.32    (d) In order to facilitate the issuance of the authority's revenue bonds to finance
68.33a pool of loans to different borrowers, the authority may require the borrower in the
68.34commitment to issue its general obligation bond on a date certain in the future, and
68.35may require the borrower to pay the costs incurred by the authority as a result of the
68.36borrower's failure to deliver its general obligation bond as required by the commitment.
69.1The commitment may also require the borrower to provide to the authority full disclosure
69.2of all material facts and financial information relating to the borrower that would be
69.3required if the borrower issued its general obligation bond to the public, certified as to
69.4completeness and accuracy by authorized officers of the borrower, and authorization for
69.5the authority to use such information in connection with the sale of the authority's revenue
69.6bonds or disclosure relating to the authority's revenue bonds.
69.7    (e) In addition to delivering its general obligation bond, each borrower shall enter
69.8into a regulatory agreement with the authority providing additional terms of the loan
69.9as the authority may specify, including providing to the authority periodic reports and
69.10information relating to the acquisition or construction of the project and use of the
69.11proceeds of the borrower's general obligation bond and periodic operating, financial, and
69.12other information as to the creditworthiness of the borrower, and providing and filing
69.13continuing secondary market disclosure to the extent required by the authority.
69.14    (f) The purchase or commitment to purchase general obligation bonds of borrowers
69.15by the authority shall be subject to the availability of proceeds of revenue bonds of the
69.16authority for such purpose and the authority is not liable to any borrower for the failure to
69.17purchase its general obligation bond pursuant to a commitment or any other agreement if
69.18proceeds of the authority's revenue bonds are not available for any reason.
69.19    Subd. 8. Interest rate determination. The rate of interest on the general obligation
69.20bonds of the borrower must be the true interest cost on the revenue bonds of the authority
69.21issued to purchase such general obligation bonds of the borrower plus the ongoing
69.22percentage fee charged by the authority under subdivision 10; provided that the interest
69.23rate must not exceed any limit imposed by federal tax law with respect to the authority's
69.24revenue bonds.
69.25    Subd. 9. Market considerations. The authority may suspend offering loans if it is
69.26determined by the executive director that there are extreme or unusual events impacting
69.27the bond market and that to continue making loans would be detrimental to holders of the
69.28authority's revenue bonds or the financial viability of the credit enhanced bond program,
69.29or if the state is warned by one of its rating agencies that continuing to make loans will
69.30result in lowering the state's bond rating. If the making of loans is suspended under this
69.31section, the authority shall have the option to resume making loans once it has determined
69.32that the conditions for suspending the program no longer exist.
69.33    Subd. 10. Fees. The authority shall charge a nonrefundable application fee of
69.34$1,000 payable by each applicant upon submission of an application to the authority. A
69.35separate application fee must be payable for each application submitted, including a
69.36resubmitted application for an application that was rejected by the authority or determined
70.1to be incomplete or inaccurate by the authority. The authority shall charge an ongoing
70.2periodic fee of ten basis points of the outstanding principal amount of the loan to be added
70.3to, and be a component of, the interest rate on the general obligation bonds of the borrower.
70.4    Subd. 11. Authority revenue bonds. (a) The authority is authorized to issue
70.5revenue bonds as provided in this chapter to fund the credit enhanced bond program.
70.6The revenue bonds may be issued in one or more series pursuant to a resolution of the
70.7authority or a series resolution or pursuant to a trust indenture with a financial institution
70.8with trust powers as trustee, authorized by resolution of the authority. Any issue of bonds
70.9may be used to fund one or more loans, may be payable by the loans funded from such
70.10issue of bonds and such additional loans as pledged by the authority, and may be payable
70.11on a subordinated basis to other bonds. As permitted by the terms of any revenue bonds
70.12issued by the authority, the authority may sell the general obligations pledged to the
70.13payment of the revenue bonds and any proceeds of the sale in excess of those used to pay
70.14the principal of the revenue bonds must be deposited to the credit enhanced bond program
70.15fund and may be used to purchase additional general obligation bonds of borrowers, to
70.16provide credit enhancement for the authority's revenue bonds, or to pay any other expense
70.17of the credit enhanced bond program.
70.18    (b) The authority may issue short-term bonds in anticipation of issuing long-term
70.19bonds for the purpose of acquiring general obligation bonds of borrowers.
70.20    (c) Bonds issued by the authority for the credit enhanced bond program must not
70.21be general obligations of the authority to the payment of which the general assets of the
70.22authority are pledged or available for payment. All bonds issued for the credit enhanced
70.23bond programs by the authority must be revenue bonds payable solely from the sources
70.24specified in the bond.
70.25    Subd. 12. Reports, disclosure, audits. (a) During the term of the loan the borrower
70.26shall provide written reports to the authority. The content and timing of these reports must
70.27be as specified in the regulatory agreement.
70.28    (b) During the term of the loan the borrower shall disclose to the authority any
70.29material information or events adversely affecting the creditworthiness of the borrower
70.30as specified in the regulatory agreement. If required by the authority in a regulatory
70.31agreement, the borrower shall enter into a continuing disclosure undertaking to provide
70.32disclosure to the market.
70.33    (c) During the term of the loan, the borrower shall provide to the authority on an
70.34annual basis financial statements of the borrower audited by an independent accounting
70.35firm, as further specified in the regulatory agreement.

71.1    Sec. 52. Minnesota Statutes 2006, section 446A.12, subdivision 1, is amended to read:
71.2    Subdivision 1. Bonding authority. The authority may issue negotiable bonds in a
71.3principal amount that the authority determines necessary to provide sufficient funds for
71.4achieving its purposes, including the making of loans and purchase of securities, the
71.5payment of interest on bonds of the authority, the establishment of reserves to secure
71.6its bonds, the payment of fees to a third party providing credit enhancement, and the
71.7payment of all other expenditures of the authority incident to and necessary or convenient
71.8to carry out its corporate purposes and powers, but not including the making of grants.
71.9Bonds of the authority may be issued as bonds or notes or in any other form authorized
71.10by law. The principal amount of bonds issued and outstanding under this section at any
71.11time may not exceed $1,500,000,000, excluding bonds for which refunding bonds or
71.12crossover refunding bonds have been issued., and excluding any bonds issued for the
71.13credit enhanced bond program or refunding or crossover refunding bonds issued under the
71.14program. The principal amount of bonds issued and outstanding under section 446A.087,
71.15may not exceed $500,000,000, excluding bonds for which refunding bonds or crossover
71.16refunding bonds have been issued.

71.17    Sec. 53. Laws 1999, chapter 223, article 2, section 72, is amended to read:
71.18    Sec. 72. UPPER RED LAKE BUSINESS LOAN PROGRAM.
71.19    The commissioner of trade and economic development must make loans to
71.20businesses in the Upper Red Lake area that have been severely affected by the significant
71.21decline of the walleye fishing resource in Upper Red Lake. The loans may only be
71.22made to businesses that operated in 1998. A business must submit an application to the
71.23commissioner on forms provided by the commissioner. The application must include a
71.24business plan for continued operation, with the assistance of the loan, until the walleye
71.25fishing resource recovers. The commissioner shall allocate available loan funds to a
71.26business based on the commissioner's evaluation of the probable success of its business
71.27plan. A loan shall be for a maximum amount of $75,000 and a duration of ten years from
71.28the date of the loan and shall be interest free. Repayment of a loan in monthly payments
71.29of 1/120 of the original principal amount must begin no later than one year after walleye
71.30fishing on Upper Red Lake is allowed by the department of natural resources recovered to
71.31a bag limit of six fish. Any principal balance remaining at the end of the ten-year period
71.32shall be forgiven if the business continues in operation for the ten-year period. Loan
71.33repayments shall be deposited in the general fund.

71.34    Sec. 54. Laws 2007, chapter 135, article 1, section 3, subdivision 2, is amended to read:
72.1
72.2
Subd. 2. Business and Community
Development
40,667,000
8,639,000
72.3
Appropriations by Fund
72.4
General
39,967,000
7,939,000
72.5
Remediation
700,000
700,000
72.6(a) (1) $250,000 the first year and $250,000
72.7the second year are from the general fund
72.8for a grant under Minnesota Statutes,
72.9section 116J.421, to the Rural Policy and
72.10Development Center at St. Peter, Minnesota.
72.11The grant shall be used for research and
72.12policy analysis on emerging economic and
72.13social issues in rural Minnesota, to serve as
72.14a policy resource center for rural Minnesota
72.15communities, to encourage collaboration
72.16across higher education institutions to
72.17provide interdisciplinary team approaches
72.18to research and problem-solving in rural
72.19communities, and to administer overall
72.20operations of the center.
72.21(2) The grant shall be provided upon the
72.22condition that each state-appropriated
72.23dollar be matched with a nonstate dollar.
72.24Acceptable matching funds are nonstate
72.25contributions that the center has received and
72.26have not been used to match previous state
72.27grants. Any unencumbered balance in the
72.28first year is available for the second year.
72.29(b) $250,000 the first year and $250,000
72.30the second year are from the general fund
72.31for a grant to WomenVenture for women's
72.32business development programs.
72.33(c) $250,000 the first year is for a grant to
72.34University Enterprise Laboratories (UEL)
72.35for its direct and indirect expenses to support
73.1efforts to encourage the growth of early-stage
73.2and emerging bioscience companies. UEL
73.3must provide a report by June 30 each year
73.4to the commissioner on the expenditures
73.5until the appropriation is expended. This is a
73.6onetime appropriation and is available until
73.7expended.
73.8(d) $2,000,000 the first year is for grants
73.9under Minnesota Statutes, section 116J.571,
73.10for the redevelopment grant program. This is
73.11a onetime appropriation.
73.12(e) $100,000 the first year and $100,000 the
73.13second year are to help small businesses
73.14access federal funds through the federal
73.15Small Business Innovation Research Program
73.16and the federal Small Business Technology
73.17Transfer Program. Department services
73.18must include maintaining connections to
73.1911 federal programs, assessment of specific
73.20funding opportunities, review of funding
73.21proposals, referral to specific consulting
73.22services, and training workshops throughout
73.23the state. Unless prohibited by federal law,
73.24the department must implement fees for
73.25services that help companies seek federal
73.26Phase II Small Business Innovation Research
73.27grants. The recommended fee schedule
73.28must be reported to the chairs of the house
73.29of representatives finance committee and
73.30senate budget division with jurisdiction over
73.31economic development by February 1, 2008.
73.32(f) $100,000 the first year and $100,000
73.33the second year are appropriated to the
73.34Public Facilities Authority for the small
74.1community wastewater treatment program
74.2under Minnesota Statutes, chapter 446A.
74.3(g) $255,000 the first year and $155,000
74.4the second year are from the general fund
74.5for a grant to the Metropolitan Economic
74.6Development Association for continuing
74.7minority business development programs in
74.8the metropolitan area.
74.9(h) $85,000 the first year and $85,000 the
74.10second year are for grants to the Minnesota
74.11Inventors Congress. Of this amount, $10,000
74.12each year is for the Student Inventors
74.13Congress.
74.14(i) $151,000 the first year is for a onetime
74.15grant to the city of Faribault to design,
74.16construct, furnish, and equip renovations to
74.17accommodate handicapped accessibility at
74.18the Paradise Center for the Arts.
74.19(j) $750,000 the first year is to Minnesota
74.20Technology, Inc. for the small business
74.21growth acceleration program established
74.22under Minnesota Statutes, section 116O.115.
74.23This is a onetime appropriation. This
74.24appropriation does not cancel, but is
74.25available until June 30, 2011.
74.26(k) $300,000 the first year is for a onetime
74.27grant to the city of Northome for the
74.28construction of a new municipal building to
74.29replace the structures damaged by fire on
74.30July 22, 2006. This appropriation is available
74.31when the commissioner determines that a
74.32sufficient match is available from nonstate
74.33sources to complete the project.
75.1(l) $300,000 the first year is for a grant to the
75.2city of Worthington for an agricultural-based
75.3bioscience training and testing center. Funds
75.4appropriated under this section must be used
75.5to provide a training and testing facility for
75.6incubator firms developing new agricultural
75.7processes and products. This is a onetime
75.8appropriation and is available until expended.
75.9(m) $1,750,000 the first year is for a onetime
75.10grant to BioBusiness Alliance of Minnesota
75.11for bioscience business development
75.12programs to promote and position the state
75.13as a global leader in bioscience business
75.14activities. These funds may be used for:
75.15(1) completion and periodic updating of
75.16a statewide bioscience business industry
75.17assessment of business technology
75.18enterprises and Minnesota's competitive
75.19position employing annual updates to federal
75.20industry classification data;
75.21(2) long-term strategic planning that includes
75.22projections of market changes resulting
75.23from developments in biotechnology and the
75.24development of 20-year goals, strategies, and
75.25identified objectives for renewable energy,
75.26medical devices, biopharma, and biologics
75.27business development in Minnesota;
75.28(3) the design and construction of a
75.29Minnesota focused bioscience business
75.30model to test competing strategies and
75.31scenarios, evaluate options, and forecast
75.32outcomes; and
75.33(4) creation of a bioscience business
75.34resources network that includes development
75.35of a statewide bioscience business economic
76.1development framework to encourage
76.2bioscience business development and
76.3encourage spin-off activities, attract
76.4bioscience business location or expansion in
76.5Minnesota, and establish a local capability to
76.6support strategic system level planning for
76.7industry, government, and academia.
76.8This appropriation is available until June 30,
76.92009.
76.10(n) $125,000 the first year is to develop and
76.11operate a bioscience business marketing
76.12program to market Minnesota bioscience
76.13businesses and business opportunities
76.14to other states and other countries. The
76.15bioscience business marketing program must
76.16emphasize bioscience business location and
76.17expansion opportunities in communities
76.18outside of the seven-county metropolitan
76.19area as defined in Minnesota Statutes,
76.20section 473.121, subdivision 2, that have
76.21established collaborative plans among two
76.22or more municipal units for bioscience
76.23business activities, and that are within 15
76.24miles of a four-year, baccalaureate degree
76.25granting institution or a two-year technical
76.26or community college that offers bioscience
76.27curricula. The commissioner must report
76.28to the committees of the senate and house
76.29of representatives having jurisdiction
76.30over bioscience and technology issues by
76.31February 1 of each year on the expenditures
76.32of these funds and the promotional activities
76.33undertaken to market the Minnesota
76.34bioscience industry to persons outside of the
76.35state. This is a onetime appropriation and is
76.36available until expended.
77.1(o) $325,000 is for a grant to the Walker
77.2Area Community Center, Inc., to construct,
77.3furnish, and equip the Walker Area
77.4Community Center. This appropriation is
77.5not available until the commissioner has
77.6determined that an amount sufficient to
77.7complete the project has been committed
77.8from nonstate sources. This is a onetime
77.9appropriation and is available until expended.
77.10(p) $100,000 the first year is for a grant
77.11to the Pine Island Economic Development
77.12Authority for predesign to upgrade and
77.13extend utilities to serve Elk Run Bioscience
77.14Research Park and The Falls - Healthy
77.15Living By Nature, an integrated medicine
77.16facility. This is a onetime appropriation and
77.17is available until expended.
77.18(q) $350,000 the first year is for a grant
77.19to Thomson Township for infrastructure
77.20improvements for the industrial park. This
77.21is a onetime appropriation and is available
77.22until expended.
77.23(r) $75,000 the first year is for a grant to
77.24Le Sueur County for the cost of cleaning
77.25up debris from lakes in Le Sueur County,
77.26caused by the August 24, 2006, tornado in
77.27southern Le Sueur County. This is a onetime
77.28appropriation and is available until expended.
77.29(s) $400,000 the first year is for a grant to
77.30the city of Rogers to be used for relief from
77.31damages caused by the September 16, 2006,
77.32tornado.
77.33(t) $75,000 the first year is for a grant to
77.34the city of Warroad for new public facilities
77.35to replace those damaged or destroyed
78.1by the August 2006 tornado, including
78.2approximately 28 new street lights and
78.3underground electrical circuits and a new
78.4fish cleaning house. This is a onetime
78.5appropriation and is available until expended.
78.6If an appropriation for this purpose is enacted
78.7more than once in the 2007 session, the
78.8appropriation is effective only once.
78.9(u) $500,000 the first year is for a grant to
78.10the Upper Sioux Community to improve the
78.11current water system to ensure continuity
78.12of service to the entire population of the
78.13community and to meet the demands of the
78.14community expansion over the next 20 years.
78.15The is a onetime appropriation and is not
78.16available until the Public Facilities Authority
78.17has determined that at least $1,000,000 has
78.18been committed from nonstate sources. This
78.19appropriation is available until expended. *
78.20(The preceding text beginning "(u) $500,000
78.21the first year is for" was indicated as vetoed
78.22by the governor.)
78.23(v) $755,000 the first year is for the urban
78.24challenge grant program under Minnesota
78.25Statutes, section 116M.18. This is a onetime
78.26appropriation.
78.27(w) $1,100,000 is for a grant to the
78.28Neighborhood Development Center for
78.29assistance necessary to retain minority
78.30business enterprises at the Global Market.
78.31This is a onetime appropriation and is
78.32available until expended.
78.33(x) $350,000 the first year is for a onetime
78.34grant to the city of Inver Grove Heights
78.35to reduce debt on the Inver Grove Heights
79.1Veterans Memorial Community Center. *
79.2(The preceding text beginning "(x) $350,000
79.3the first year is for" was indicated as vetoed
79.4by the governor.)
79.5(y) $14,900,000 the first year is for the
79.6Minnesota minerals 21st century fund created
79.7in Minnesota Statutes, section 116J.423, to
79.8partially restore the money unallotted by the
79.9commissioner of finance in 2003 pursuant
79.10to Minnesota Statutes, section 16A.152.
79.11This appropriation may be used as provided
79.12in Minnesota Statutes, section 116J.423,
79.13subdivision 2
. This appropriation is available
79.14until expended.
79.15(z) $2,500,000 the first year is for a grant to
79.16the city of St. Paul to be used to pay, redeem,
79.17or refund debt service costs incurred for the
79.18River Centre Campus. * (The preceding text
79.19beginning "(z) $2,500,000 the first year is
79.20for" was indicated as vetoed by the governor.)
79.21(aa) $147,000 each year is appropriated from
79.22the general fund to the commissioner of
79.23employment and economic development for
79.24grants of $49,000 to eligible organizations
79.25each year and for the purposes of this
79.26paragraph. Each state grant dollar must be
79.27matched with $1 of nonstate funds. Any
79.28balance in the first year does not cancel but
79.29is available in the second year. The base for
79.30these grants in fiscal years 2010 and 2011
79.31is $189,000 each year, with each eligible
79.32organization receiving a $63,000 grant each
79.33year.
79.34The commissioner of employment and
79.35economic development must make grants to
80.1organizations to assist in the development
80.2of entrepreneurs and small businesses.
80.3Three grants must be awarded to continue
80.4or to develop a program. One grant must
80.5be awarded to the Riverbend Center for
80.6Entrepreneurial Facilitation in Blue Earth
80.7County, and two to other organizations
80.8serving Faribault and Martin Counties. Grant
80.9recipients must report to the commissioner
80.10by February 1 of each year that the
80.11organization receives a grant with the
80.12number of customers served; the number of
80.13businesses started, stabilized, or expanded;
80.14the number of jobs created and retained; and
80.15business success rates. The commissioner
80.16must report to the house of representatives
80.17and senate committees with jurisdiction
80.18over economic development finance on the
80.19effectiveness of these programs for assisting
80.20in the development of entrepreneurs and
80.21small businesses.
80.22(bb) $5,000,000 $2,000,000 the first year is
80.23for grants under Minnesota Statutes, section
80.24116J.8731 , for the Minnesota investment
80.25fund program. Of this amount, up to
80.26$3,000,000 may be used for a legal reference
80.27office and data center facility, provided that
80.28the total capital investment in the facility
80.29is at least $60,000,000. This grant is not
80.30subject to grant limitations under Minnesota
80.31Statutes, section 116J.8731, subdivision 5
80.32$1,000,000 must be used for biomass heating
80.33grants and loans under section 45. This is
80.34a onetime appropriation and is available in
80.35either year of the biennium.

81.1    Sec. 55. Laws 2007, chapter 135, article 1, section 3, subdivision 3, is amended to read:
81.2
Subd. 3. Workforce Development
50,024,000
49,833,000
81.3
Appropriations by Fund
81.4
General
33,529,000
33,338,000
81.5
81.6
Workforce
Development
16,495,000
16,495,000
81.7(a) $6,785,000 the first year and $6,785,000
81.8the second year are from the general fund
81.9for the Minnesota job skills partnership
81.10program under Minnesota Statutes, sections
81.11116L.01 to 116L.17. If the appropriation for
81.12either year is insufficient, the appropriation
81.13for the other year is available for it. This
81.14appropriation does not cancel.
81.15(b) $455,000 the first year and $455,000 the
81.16second year are from the general fund for
81.17a grant under Minnesota Statutes, section
81.18116J.8747 , to Twin Cities RISE! to provide
81.19training to hard-to-train individuals.
81.20(c) $1,375,000 each year is from
81.21the workforce development fund for
81.22Opportunities Industrialization Center
81.23programs.
81.24(d) $5,614,000 each year is from the general
81.25fund and $6,920,000 each year is from the
81.26workforce development fund for extended
81.27employment services for persons with
81.28severe disabilities or related conditions
81.29under Minnesota Statutes, section 268A.15.
81.30Of this, $125,000 each year and in the
81.31base for fiscal years 2010 and 2011 is to
81.32supplement funds paid for wage incentives
81.33for the community support fund established
81.34in Minnesota Rules, part 3300.2045. The
81.35commissioner shall not reduce expenditures
82.1from these appropriations in either year of
82.2the biennium.
82.3(e) $1,650,000 the first year and $1,650,000
82.4the second year are from the general fund for
82.5grants for programs that provide employment
82.6support services to persons with mental
82.7illness under Minnesota Statutes, sections
82.8268A.13 and 268A.14. Up to $77,000 each
82.9year may be used for administrative and
82.10salary expenses.
82.11(f) $2,440,000 the first year and $2,440,000
82.12the second year are from the general
82.13fund for grants under Minnesota Statutes,
82.14section 268A.11, for the eight centers
82.15for independent living. The base for this
82.16program is $2,440,000 each year in fiscal
82.17years 2010 and 2011. Money not expended
82.18the first year is available the second year.
82.19The commissioner must:
82.20(1) transfer $115,000 of federal independent
82.21living Part B rehabilitation services funds
82.22to the Minnesota Centers for Independent
82.23Living each year contingent upon the
82.24availability of federal funds under Title VII,
82.25Part B, of the Federal Rehabilitation Act of
82.261973 as amended under United States Code,
82.27title 29, section 711(c), and approved by the
82.28Statewide Independent Living Council;
82.29(2) replace federal Part B funds in the
82.30State Independent Living Council budget
82.31transferred under clause (1) with $115,000
82.32of Social Security Administration program
82.33income funds each year; and
83.1(3) provide an additional $185,000 each year
83.2from the Social Security Administration
83.3program income to the Minnesota Centers for
83.4Independent Living to be allocated equally
83.5among the eight centers.
83.6Additional funding for centers for
83.7independent living under clauses (1) and (3)
83.8must be used for core independent living
83.9services by the Centers for Independent
83.10Living. The Statewide Independent Living
83.11Council framework for statewide distribution
83.12of state and federal funding to the Minnesota
83.13Centers for Independent Living does not
83.14apply to the funds under clauses (1) and
83.15(3). The commissioner must report on the
83.16transfers in clauses (1), (2), and (3), and any
83.17other effort to pursue additional funding for
83.18the Centers for Independent Living to the
83.19standing committees of the senate and house
83.20of representatives having jurisdiction over
83.21Centers for Independent Living by March 15
83.22each year.
83.23(g) $5,940,000 the first year and $5,940,000
83.24the second year are from the general fund for
83.25state services for the blind activities.
83.26(h) $150,000 the first year and $150,000
83.27the second year are from the general fund
83.28and $175,000 the first year and $175,000
83.29the second year are from the workforce
83.30development fund for grants under Minnesota
83.31Statutes, section 268A.03, to Rise, Inc.
83.32for the Minnesota Employment Center for
83.33People Who are Deaf or Hard-of-Hearing.
83.34Money not expended the first year is
83.35available the second year.
84.1(i) $9,021,000 the first year and $9,021,000
84.2the second year are from the general fund for
84.3the state's vocational rehabilitation program
84.4for people with significant disabilities to
84.5assist with employment, under Minnesota
84.6Statutes, chapter 268A.
84.7(j) $350,000 the first year and $350,000
84.8the second year are from the workforce
84.9development fund for grants to provide
84.10interpreters for a regional transition program
84.11that specializes in providing culturally
84.12appropriate transition services leading to
84.13employment for deaf, hard-of-hearing, and
84.14deaf-blind students. This amount must be
84.15added to the department's base.
84.16(k) $150,000 the first year and $150,000 the
84.17second year are for a grant to Advocating
84.18Change Together for training, technical
84.19assistance, and resources materials to persons
84.20with developmental and mental illness
84.21disabilities.
84.22(l) $250,000 the first year and $250,000
84.23the second year are from the workforce
84.24development fund and $150,000 the first
84.25year and $100,000 the second year are from
84.26the general fund for a grant to Lifetrack
84.27Resources for its immigrant and refugee
84.28collaborative programs, including those
84.29related to job-seeking skills and workplace
84.30orientation, intensive job development,
84.31functional work English, and on-site job
84.32coaching. $50,000 of the first year general
84.33fund appropriation is for a onetime pilot
84.34Lifetrack project in Rochester.
85.1(m) $75,000 the first year and $75,000 the
85.2second year are from the general fund and
85.3$1,000,000 the first year and $1,000,000
85.4the second year are from the workforce
85.5development fund for the youthbuild
85.6program under Minnesota Statutes, sections
85.7116L.361 to 116L.366. This appropriation
85.8may be used for:
85.9(1) restoring the three youthbuild programs
85.10that were eliminated due to budget reductions
85.11and adding seven more youthbuild programs
85.12statewide;
85.13(2) restoring funding levels for all youthbuild
85.14programs plus an inflationary increase for
85.15each program;
85.16(3) increasing the number of at-risk youth
85.17served by the youthbuild programs from 260
85.18youth per year to 500 youth per year; and
85.19(4) restoring the youthbuild focus on careers
85.20in technology and adding a youthbuild focus
85.21on careers in the medical field.
85.22(n) $1,325,000 each year is from the
85.23workforce development fund for grants
85.24to fund summer youth employment in
85.25Minneapolis. The grants shall be used to
85.26fund up to 500 jobs for youth each summer.
85.27Of this appropriation, $325,000 each year is
85.28for a grant to the learn-to-earn summer youth
85.29employment program. The commissioner
85.30shall establish criteria for awarding the
85.31grants. This appropriation is available in
85.32either year of the biennium and is available
85.33until spent.
86.1(o) $600,000 the first year and $600,000
86.2the second year are from the workforce
86.3development fund for a grant to the city of
86.4St. Paul for grants to fund summer youth
86.5employment in St. Paul. The grants shall be
86.6used to fund up to 500 jobs for youth each
86.7summer. The commissioner shall establish
86.8criteria for awarding the grants within the
86.9city of St. Paul. This appropriation is
86.10available in either year of the biennium and
86.11is available until spent.
86.12(p) $250,000 the first year and $250,000 the
86.13second year are from the general fund for
86.14grants to Northern Connections in Perham
86.15to implement and operate a pilot workforce
86.16program that provides one-stop supportive
86.17services to individuals as they transition into
86.18the workforce.
86.19(q) $100,000 each year is for a grant to
86.20Ramsey County Workforce Investment Board
86.21for the development of the building lives
86.22program. This is a onetime appropriation. *
86.23(The preceding text beginning "(q) $100,000
86.24each year is for" was indicated as vetoed by
86.25the governor.)
86.26(r) $150,000 each year is for a grant to the
86.27Hennepin-Carver Workforce Investment
86.28Board (WIB) to coordinate with the Partners
86.29for Progress Regional Skills Consortium
86.30to provide employment and training as
86.31demonstrated by the Twin Cities regional
86.32health care training partnership project. *
86.33(The preceding text beginning "(r) $150,000
86.34each year is for" was indicated as vetoed by
86.35the governor.)
87.1(s) $160,000 the first year is for a onetime
87.2grant to Workforce Development, Inc., for
87.3a pilot project to provide demand-driven
87.4employment and training services to
87.5welfare recipients and other economically
87.6disadvantaged populations in Mower,
87.7Freeborn, Dodge, and Steele Counties.
87.8(t) $200,000 the first year and $200,000 the
87.9second year are from the general fund for
87.10a grant to HIRED to operate its industry
87.11sector training initiatives, which provide
87.12employee training developed in collaboration
87.13with employers in specific, high-demand
87.14industries. * (The preceding text beginning
87.15"(t) $200,000 the first year" was indicated as
87.16vetoed by the governor.)
87.17(u) $100,000 the first year is for a onetime
87.18grant to a nonprofit organization. The
87.19nonprofit organization must work on behalf
87.20of all licensed vendors to coordinate their
87.21efforts to respond to solicitations or other
87.22requests from private and governmental units
87.23as defined in Minnesota Statutes, section
87.24471.59, subdivision 1 , in order to increase
87.25employment opportunities for persons with
87.26disabilities.
87.27(v) $3,500,000 each year from the workforce
87.28development fund is for the Minnesota youth
87.29program under Minnesota Statutes, sections
87.30116L.56 and 116L.561.
87.31(w) $1,000,000 each year from the workforce
87.32development fund is for a grant to the
87.33Minnesota Alliance of Boys and Girls
87.34Clubs to administer a statewide project
87.35of youth job skills development. This
88.1project, which may have career guidance
88.2components, including health and life skills,
88.3is to encourage, train, and assist youth in
88.4job-seeking skills, workplace orientation,
88.5and job site knowledge through coaching.
88.6This grant requires a 25 percent match from
88.7nonstate resources.
88.8(x) $10,000 the first year is for a study on
88.9ways to promote employment opportunities
88.10for minorities, with a particular focus on
88.11opportunities for African Americans, in
88.12the state of Minnesota. The study should
88.13focus on how to significantly expand the job
88.14training available to minorities and promote
88.15substantial increases in the wages paid to
88.16minorities, at least to a rate well above living
88.17wage, and within several years, to equality.
88.18The commissioner must report on the study
88.19to the governor and the chair of the finance
88.20committee in each house of the legislature
88.21that has jurisdiction over employment by
88.22January 15, 2008, with recommendations for
88.23implementing the findings.
88.24(y) The commissioner must provide funding
88.25for the Minnesota Conservation Corps to
88.26provide learning stipends for deaf students
88.27and wages for interpreters participating in
88.28the MCC summer youth program.

88.29    Sec. 56. BIOMASS HEATING GRANTS AND LOANS PILOT PROJECT.
88.30    Within the limits of appropriations, the commissioner of the Department of
88.31Employment and Economic Development shall make grants and loans for costs related
88.32to the installation of an approved biomass heating project in a publicly owned facility,
88.33including K-12 public schools, higher education buildings, and buildings owned by a
88.34local unit of government. The commissioner must approve biomass heating projects that
88.35produce energy for heating air or water using organic matter available on a renewable
89.1basis, including but not limited to agricultural crops, grasses and trees, or wood production
89.2or other waste. Applications for a grant or loan under this section must be made to the
89.3commissioner on the forms and according to the timeline prescribed by the commissioner.
89.4At a minimum, the commissioner must require sufficient information on the applications
89.5to determine that the physical condition of the publicly owned facility is sufficient to
89.6support the efficient operation of the biomass heating project and that the projected
89.7cumulative energy cost savings are adequate relative to the costs of the investment.
89.8The grant and loan may each provide up to 50 percent of the total installed costs of the
89.9biomass heating projects.

89.10    Sec. 57. HARDSHIP PAYMENTS.
89.11    Subdivision 1. Payments; availability. Hardship payments are available to
89.12an applicant if the applicant suffered economic hardship due to delays in receiving
89.13unemployment benefits resulting from the new unemployment insurance application
89.14and filing system implemented by the Department of Employment and Economic
89.15Development on October 15, 2007.
89.16    Subd. 2. Economic hardship. "Economic hardship" means financial losses to
89.17an applicant resulting from: checks returned for insufficient funds; account overdraft
89.18charges; installment credit penalties, interest, and other fees resulting from missed or
89.19late payments; mortgage loan late fees, interest charges, or other penalties; charges for
89.20force-placed automobile or homeowner's insurance; penalties for late payment of income
89.21or property taxes; and any penalties or adverse consequences, including the suspension of
89.22an applicant's driver's license due to nonpayment of child support.
89.23    Subd. 3. Payment from administration account. Hardship payments are payable
89.24from the unemployment insurance administration account under Minnesota Statutes,
89.25section 268.196.
89.26    Subd. 4. Eligibility conditions. An applicant is eligible to receive hardship
89.27payments under this section if the applicant's unemployment benefit payments due and
89.28payable after October 15, 2007, were delayed at least four weeks.
89.29    Subd. 5. Amount of hardship payments. The amount of hardship payments
89.30available to an applicant is equal to the amount of economic hardship experienced by an
89.31applicant due to the delay in receiving unemployment benefits. An applicant must provide
89.32documentation of the amount of financial hardship claimed using financial institution
89.33records, consumer or business credit records, child support records, or other commonly
89.34recognized methods of documenting financial transactions.
90.1    Subd. 6. Notice. The commissioner must notify applicants of the availability of
90.2hardship payments by posting a notice on the department's official Web site, by notifying
90.3applicants by individual mailing where department records show the applicant may be
90.4eligible under subdivision 4, and by any other appropriate announcement.
90.5EFFECTIVE DATE.This section is effective the day following final enactment.

90.6    Sec. 58. LUMBER COMPANY EXTRA BENEFITS.
90.7    Subdivision 1. Extra benefits; availability. Extra unemployment benefits are
90.8available to an applicant who was laid off due to lack of work from the Ainsworth Lumber
90.9Company plant in Cook, Minnesota.
90.10    Subd. 2. Payment from fund; effect on employer. Extra unemployment benefits
90.11are payable from the unemployment insurance trust fund. Extra unemployment benefits
90.12paid will not be used in computing the experience rating of Ainsworth Lumber Company
90.13under Minnesota Statutes, sections 268.047 and 268.051, subdivision 3.
90.14    Subd. 3. Eligibility conditions. An applicant is eligible to receive extra
90.15unemployment benefits under this section for any week through December 27, 2008, if:
90.16    (1) the applicant established a benefit account under Minnesota Statutes, section
90.17268.07, with a majority of the wage credits from Ainsworth Lumber Company, and
90.18exhausted entitlement to those regular unemployment benefits after January 1, 2008;
90.19    (2) the applicant meets the same eligibility requirements that are required for regular
90.20unemployment benefits under Minnesota Statutes, section 268.069;
90.21    (3) the applicant is not entitled to any other unemployment benefits and is not
90.22entitled to receive unemployment benefits under any other state or federal law for that
90.23week, including any other extended unemployment benefits; and
90.24    (4) if an applicant qualifies for any type of unemployment benefits available under
90.25Minnesota law, or under any federal law, or the law of another state, the applicant must
90.26apply for and exhaust entitlement to those unemployment benefits.
90.27    Subd. 4. Weekly amount of extra benefits. The weekly extra unemployment
90.28benefits amount available to an applicant is the same as the applicant's weekly regular
90.29unemployment benefit amount on the benefit account established in subdivision 3, clause
90.30(1).
90.31    Subd. 5. Maximum amount of extra unemployment benefits. The maximum
90.32amount of extra unemployment benefits available is equal to 26 times the applicant's
90.33weekly benefit amount.
91.1    Subd. 6. Program expiration. This extra unemployment benefit program expires
91.2on December 27, 2008. No extra unemployment benefits may be paid for any week after
91.3the expiration of this program.
91.4    Subd. 7. Notice. The commissioner must notify applicants of the availability
91.5of extra unemployment benefits by posting a notice on the department's official Web
91.6site, by notifying applicants by individual mailing where department records show the
91.7applicant may qualify for these extra unemployment benefits, and by any other appropriate
91.8announcement.
91.9EFFECTIVE DATE.This section is effective the day following final enactment
91.10and applies retroactively to January 1, 2008.

91.11    Sec. 59. OFFICE OF SCIENCE AND TECHNOLOGY.
91.12    Subdivision 1. Establishment. An Office of Science and Technology is established
91.13in the Department of Employment and Economic Development to do the following:
91.14    (1) coordinate public and private efforts to procure federal funding for collaborative
91.15research and development projects of primary benefit to small and medium-sized
91.16businesses;
91.17    (2) promote contractual relationships between Minnesota businesses that are
91.18recipients of federal grants and prime contractors, and Minnesota-based subcontractors;
91.19    (3) work with Minnesota nonprofit institutions including the University of
91.20Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting
91.21collaborative efforts to respond to federal funding opportunities;
91.22    (4) develop a framework for Minnesota companies to establish sole-source
91.23relationships with federal agencies; and
91.24    (5) coordinate workshops, assistance with business proposals, licensing, intellectual
91.25property protection, commercialization, and government auditing with the University of
91.26Minnesota and Minnesota State Colleges and Universities.
91.27    For the purposes of this section, "office" means the Office of Science and Technology
91.28established in this subdivision.
91.29    Subd. 2. Technology partnering with a prime contractor. The office must
91.30develop a program to assist small businesses competing for a small business innovation
91.31research award by matching the applicant with a larger company. Prime contractors are
91.32matched to small businesses through a prescreening process that may result in a letter of
91.33support for the applicant designed to increase the chance of receiving a Small Business
91.34Innovation Research (SBIR) award.
92.1    Subd. 3. Collaborate to commercialize. The office must develop a program to use
92.2the federal high-risk research and development investment program to encourage the
92.3development of new technologies, products, and business development and to reduce
92.4development risks by encouraging alliances between medium-sized companies and
92.5innovative small businesses.
92.6    Subd. 4. Technology matchmaking. The office must assist businesses in
92.7identifying qualified suppliers and vendors through a program to serve as a conduit for
92.8Minnesota-based companies to network with firms able to support their success. Firms
92.9outside Minnesota can participate in the technology matchmaking network if one of the
92.10participating companies is located in Minnesota.
92.11    Subd. 5. Commercialization assistance. The office must provide
92.12commercialization assistance to Minnesota firms that have received a Phase I Small
92.13Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer
92.14(STTR) award and are submitting a Phase II proposal. Local service providers must assist
92.15the applicant with developing and reviewing the required commercialization plan prior to
92.16Phase II submission. The office may provide SBIR Phase I proposal technical review.
92.17    Subd. 6. Report. The commissioner of employment and economic development
92.18must report to the committees in the house of representatives and senate having
92.19jurisdiction over bioscience and technology issues on the activities of the Office of Science
92.20and Technology by June 30 of each year.

92.21    Sec. 60. BIOSCIENCE SUBSIDY.
92.22    Any bioscience or biotechnology project financed in whole or in part by state
92.23appropriations or other public subsidies must document how and to what it extent the
92.24project will provide a benefit to consumers in the form of more affordable pricing of the
92.25products or services being publicly subsidized. The documentation must be reported to
92.26the committees of the legislature with responsibility for economic development and to
92.27committees with responsibility for finance.

92.28    Sec. 61. 2009 DISTRIBUTIONS ONLY; TACONITE PRODUCTION TAX.
92.29    (a) For 2008 production, distribution in 2009 only, two cents per taxable ton of
92.30the taconite production tax under Minnesota Statutes, chapter 298, must be paid to the
92.31Hibbing Economic Development Authority to retire bonds and for economic development
92.32purposes.
92.33    (b) For 2008 production, distribution in 2009 only, 0.25 cents per taxable ton of
92.34the taconite production tax under Minnesota Statutes, chapter 298, must be paid to the
93.1St. Louis County school board to study the potential for and impact of consolidation and
93.2streamlining the operations of the St. Louis County school district No. 2142.
93.3    (c) For 2008 production, distribution in 2009 only, .25 cents per taxable ton of the
93.4taconite production tax under Minnesota Statutes, chapter 298, must be paid to Grand
93.5Rapids, for industrial park work.
93.6    (d) For 2008 production, distribution in 2009 only, .65 cents per taxable ton of the
93.7taconite production tax under Minnesota Statutes, chapter 298, must be paid to Aitkin,
93.8for sewer and water for housing projects.
93.9    (e) For 2008 production, distribution in 2009 only, .5 cents per taxable ton of the
93.10taconite production tax under Minnesota Statutes, chapter 298, must be paid to Crosby, for
93.11well and water tower infrastructure.

93.12    Sec. 62. REPEALER.
93.13(a) Minnesota Statutes 2006, section 341.31, and Laws 2004, chapter 188, section
93.142, is repealed.
93.15(b) Minnesota Statutes 2006, section 298.28, subdivision 9a, is repealed for 2008
93.16production, distributions in 2009 and thereafter.
93.17EFFECTIVE DATE.This section is effective the day following final enactment."
93.18Amend the title accordingly