Journal of the House - 82nd Day - Monday, March 29, 2010

A quorum was present.

Lanning was excused.

Clark was excused until 1:00 p.m.

The Chief Clerk proceeded to read the Journals of the preceding days. Shimanski moved that further reading of the Journals be dispensed with and that the Journals be approved as corrected by the Chief Clerk. The motion prevailed.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9606

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Carlson from the Committee on Finance to which was referred:

H. F. No. 2840, A bill for an act relating to state government; establishing a collaborative governance council; requiring reports; proposing coding for new law in Minnesota Statutes, chapter 6.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [6.81] COLLABORATIVE GOVERNANCE COUNCIL.

Subdivision 1. Establishment; membership. (a) A collaborative governance council is established and shall include major statewide governmental entities and nongovernmental statewide organizations as provided in this subdivision. The 12-member council consists of the state auditor and one member appointed by and serving at the pleasure of each of the following:

(1) League of Minnesota Cities;

(2) Minnesota Association of Townships;

(3) Association of Minnesota Counties;

(4) Minnesota School Board Association;

(5) American Federation of State, County, and Municipal Employees;

(6) Education Minnesota;

(7) Service Employees International Union;

(8) a senator appointed by the majority leader of the senate;

(9) a senator appointed by the minority leader of the senate;

(10) a member of the house of representatives appointed by the speaker of the house; and

(11) a member of the house of representatives appointed by the house minority leader.

The appointing authorities under this section shall complete their initial appointments no later than July 1, 2010.

(b) Council members shall be represented by the designated appointee of each respective organization. The council shall seek input from nonmember organizations whose expertise can help inform the council's work.

(c) In conjunction with the auditor's duties to recommend best practices for delivery of local government service, the state auditor shall serve as chair of the council and shall convene the first meeting by July 31, 2010. The council must meet at least quarterly.

(d) Members do not receive compensation or reimbursement of expenses from the council for service on the council.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9607

Subd. 2. Powers and duties; report. (a) The council shall develop recommendations to the governor and the legislature designed to increase collaboration in government. These recommendations may include, but are not limited to, strategies, policies, or other actions focused on the:

(1) review of statutes, laws, and rules that slow collaboration efforts;

(2) use of collaboration to improve the delivery of governmental services;

(3) use of technology to connect entities and share information, including broadband access;

(4) modernization of financial transactions and their oversight by facilitating credit and debit card transactions, electronic funds, transfers, and electronic data interchange; and

(5) creation of model forms for joint power agreements.

(b) By February 1 of each year, the council shall submit its recommendations, including any draft legislation necessary to implement its recommendations, to the governor and to the chairs and ranking members of the legislative committees and divisions with jurisdiction over state and local government policy and finance and early childhood through grade 12 education policy and finance.

Subd. 3. Expiration. This section expires June 30, 2015.

EFFECTIVE DATE. This section is effective June 1, 2010."

Delete the title and insert:

"A bill for an act relating to state government; establishing a collaborative governance council; requiring reports; proposing coding for new law in Minnesota Statutes, chapter 6."

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 2848, A bill for an act relating to public safety; modifying allocation of certain state fines and forfeitures; amending Minnesota Statutes 2009 Supplement, section 299D.03, subdivision 5.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 3029, A bill for an act relating to transportation; modifying provisions governing movement of large vehicles on public streets and highways; making technical changes; repealing certain rules related to motor carriers; amending Minnesota Statutes 2008, sections 169.86, subdivision 5; 169.863, subdivision 1; 169.864, subdivision 4; 169.871, subdivisions 1, 1a, 1b; Minnesota Statutes 2009 Supplement, sections 169.801, subdivision 10; 169.81, subdivision 3; 169.824, subdivision 2; 169.8261, subdivision 2; 169.864, subdivision 2; 169.865, subdivision 1;

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9608

221.025; 221.031, subdivision 3; repealing Minnesota Statutes 2008, section 169.826, subdivision 6; Minnesota Rules, parts 7800.0100, subparts 4, 6, 7, 8, 11, 12, 13, 14; 7800.0200; 7800.0400; 7800.0800; 7800.0900; 7800.1000; 7800.3200, subpart 2; 7800.3300; 7805.0500; 7805.0900; 7805.1300; 8850.7950; 8850.8000; 8850.8050, subpart 2; 8850.8100; 8850.8250; 8850.8300; 8850.8350; 8850.8800; 8850.8850; 8850.9050, subpart 3; 8855.0410; 8855.0600; 8855.0850; 8920.0100; 8920.0150; 8920.0200; 8920.0300; 8920.0400; 8920.0500; 8920.0600; 8920.0700; 8920.0800; 8920.0900; 8920.1000; 8920.1100; 8920.1200; 8920.1300; 8920.1400; 8920.1500; 8920.1550; 8920.1600; 8920.1700; 8920.1800; 8920.1900; 8920.2000; 8920.2100; 8920.2200; 8920.2300; 8920.2400; 8920.2500; 8920.2600; 8920.2700; 8920.2800; 8920.2900; 8920.3000; 8920.3100; 8920.3200; 8920.3300; 8920.3400; 8920.3500; 8920.3600; 8920.3700; 8920.3800; 8920.3900; 8920.4000; 8920.4100; 8920.4200; 8920.4300; 8920.4400; 8920.4500.

Reported the same back with the following amendments:

Page 1, after line 23, insert:

"ARTICLE 1

VEHICLE WEIGHTS AND DIMENSIONS

Section 1. Minnesota Statutes 2008, section 169.801, subdivision 5, is amended to read:

Subd. 5. Height and width. A person operating, or towing~~, or transporting~~ an implement of husbandry that is higher than 13 feet six inches or wider than allowed under section 169.80, subdivision 2, must ensure that the operation or transportation does not damage a highway structure, utility line or structure, or other fixture adjacent to or over a public highway."

Page 3, after line 28, insert:

"Sec. 4. Minnesota Statutes 2009 Supplement, section 169.824, subdivision 1, is amended to read:

Subdivision 1. Table of axle weight limits. (a) No vehicle or combination of vehicles equipped with pneumatic tires shall be operated upon the highways of this state where the total gross weight on any group of two or more consecutive axles of any vehicle or combination of vehicles exceeds that given in the following axle weight limits table for the distance between the centers of the first and last axles of any group of two or more consecutive axles under consideration;. Unless otherwise noted, the distance between axles ~~being~~ must be measured longitudinally to the nearest even foot, and when the measurement is a fraction of exactly one-half foot the next largest whole number in feet shall be used, except that when the distance between axles is more than three feet four inches and less than three feet six inches the distance of four feet shall be used:.

Axle Weight Limits

Maximum gross weight in pounds on a group of

2 3 4

consecutive axles consecutive axles consecutive axles Distances in feet of a 2-axle vehicle of a 3-axle vehicle of a 4-axle vehicle

between centers of or any combination or any combination or any combination

foremost and rearmost of vehicles having a of vehicles having a of vehicles having a

axles of a group total of 2 or more axles total of 3 or more axles total of 4 or more axles

4 34,000

5 34,000

6 34,000

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9609

7 34,000 ~~37,000~~ 34,000

8 34,000 ~~38,500~~ 34,000

8 plus 34,000 42,000

(38,000)

9 35,000 43,000

(39,000)

10 36,000 43,500 49,000

(40,000)

11 36,000 44,500 49,500

12 45,000 50,000

13 46,000 51,000

14 46,500 51,500

15 47,500 52,000

16 48,000 53,000

17 49,000 53,500

18 49,500 54,000

19 50,500 55,000

20 51,000 55,500

21 52,000 56,000

22 52,500 57,000

23 53,500 57,500

24 54,000 58,000

25 (55,000) 59,000

26 (55,500) 59,500

27 (56,500) 60,000

28 (57,000) 61,000

29 (58,000) 61,500

30 (58,500) 62,000

31 (59,500) 63,000

32 (60,000) 63,500

33 64,000

34 65,000

35 65,500

36 66,000

37 67,000

38 67,500

39 68,000

40 69,000

41 69,500

42 70,000

43 71,000

44 71,500

45 72,000

46 72,500

47 (73,500)

48 (74,000)

49 (74,500)

50 (75,500)

51 (76,000)

52 (76,500)

53 (77,500)

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54 (78,000)

55 (78,500)

56 (79,500)

57 (80,000)

(b) The maximum gross weight on a group of three consecutive axles, where the distance between centers of foremost and rearmost axles ~~is listed as~~ of any axle group is seven feet or eight feet ~~applies only to~~, is 34,000 pounds, except for vehicles manufactured before August 1, 1991. Notwithstanding any lesser weight shown in the axle weight limits table, for vehicles manufactured before August 1, 1991:

(1) the maximum gross weight on a group of three consecutive axles, where the distance between centers of the foremost and rearmost axles of any axle group is seven feet, is 37,000 pounds; and

(2) the maximum gross weight on a group of three consecutive axles, where the distance between centers of foremost and rearmost axle groups is eight feet, is 38,500 pounds.

Axle Weight Limits (continued)

Maximum gross weight in pounds on a group of

5 6 7 8

consecutive consecutive consecutive consecutive

Distances in axles of a axles of a axles of a axles of an

feet between 5-axle vehicle or 6-axle vehicle or 7-axle vehicle or 8-axle vehicle or

centers of any combination any combination any combination any combination

foremost and of vehicles of vehicles of vehicles of vehicles

rearmost axles having a total of having a total of having a total of having a total of

of a group 5 or more axles 6 or more axles 7 or more axles 8 or more axles

14 57,000

15 57,500

16 58,000

17 59,000

18 59,500

19 60,000

20 60,500 66,000 72,000

21 61,500 67,000 72,500

22 62,000 67,500 73,000

23 62,500 68,000 73,500

24 63,000 68,500 74,000

25 64,000 69,000 75,000

26 64,500 70,000 75,500

27 65,000 70,500 76,000

28 65,500 71,000 76,500

29 66,500 71,500 77,000

30 67,000 72,000 77,500

31 67,500 73,000 78,500

32 68,000 73,500 79,000

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9611

33 69,000 74,000 79,500

34 69,500 74,500 80,000

35 70,000 75,000 (80,500) (86,000)

36 70,500 76,000 (81,000) (86,500)

37 71,500 76,500 (81,500) (87,000)

38 72,000 77,000 (82,000) (87,500)

39 72,500 77,500 (82,500) (88,500)

40 73,000 78,000 (83,500) (89,000)

41 74,000 79,000 (84,000) (89,500)

42 74,500 79,500 (84,500) (90,000)

43 75,000 80,000 (85,000) (90,500)

44 75,500 (80,500) (85,500) (91,000)

45 76,500 (81,000) (86,000) (91,500)

46 77,000 (81,500) (87,000) (92,500)

47 77,500 (82,000) (87,500) (93,000)

48 78,000 (83,000) (88,000) (93,500)

49 79,000 (83,500) (88,500) (94,000)

50 79,500 (84,000) (89,000) (94,500)

51 80,000 (84,500) (89,500) (95,000)

52 (80,500) (85,000) (90,500) (95,500)

53 (81,000) (86,000) (91,000) (96,500)

54 (81,500) (86,500) (91,500) (97,000)

55 (82,500) (87,000) (92,000) (97,500)

56 (83,000) (87,500) (92,500) (98,000)

57 (83,500) (88,000) (93,000) (98,500)

58 (84,000) (89,000) (94,000) (99,000)

59 (85,000) (89,500) (94,500) (99,500)

60 (85,500) (90,000) (95,000) (100,500)

61 (95,500) (101,000)

62 (96,000) (101,500)

63 (96,500) (102,000)

64 (97,000) (102,500)

65 (103,000)

66 (103,500)

67 (104,500)

68 (105,000)

69 (105,500)

70 (106,000)

71 (106,500)

72 (107,000)

73 (107,500)

74 (108,000)

(d) The gross weights shown without parentheses in ~~this~~ the axle weight limits table are allowed on unpaved streets and highways, unless posted to a lesser weight under section 169.87, subdivision 1. The gross weights shown in this table, whether within or without parentheses, are allowed on paved streets and highways, unless posted to a lesser weight under section 169.87, subdivision 1. Gross weights in excess of 80,000 pounds require an overweight permit under this chapter, unless otherwise allowed under section 169.826.

~~(b)~~ (e) Notwithstanding any lesser weight ~~in pounds~~ shown in ~~this~~ the axle weight limits table, but subject to the restrictions on gross vehicle weights in subdivision 2, paragraph (a), two consecutive sets of tandem axles may carry a gross load of 34,000 pounds each and a combined gross load of 68,000 pounds provided the overall distance between the first and last axles of the consecutive sets of tandem axles is 36 feet or more."

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9612

Page 6, line 4, strike "169.822" and insert "169.823"

Page 8, after line 17, insert:

"Sec. 8. Minnesota Statutes 2008, section 169.862, subdivision 1, is amended to read:

Subdivision 1. Annual permit authority; restrictions. The commissioner of transportation with respect to highways under the commissioner's jurisdiction, and local authorities with respect to highways under their jurisdiction, may issue an annual permit to enable a vehicle carrying bales of hay, straw, or cornstalks, with a total outside width of the vehicle or the load not exceeding 12 feet, and a total height of the loaded vehicle not exceeding ~~14-1/2~~ 15 feet, to be operated on public streets and highways. Loaded vehicles operating on interstate highways within the seven-county metropolitan area may not exceed a total height of 14 1/2 feet.

Sec. 9. Minnesota Statutes 2009 Supplement, section 169.862, subdivision 2, is amended to read:

Subd. 2. Additional restrictions. Permits issued under this section are governed by the applicable provisions of section 169.86 except as otherwise provided herein and, in addition, carry the following restrictions:

(a) The vehicles may not be operated between sunset and sunrise, when visibility is impaired by weather, fog, or other conditions rendering persons and vehicles not clearly visible at a distance of 500 feet, or on Sunday from noon until sunset, or on the days the following holidays are observed: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

(b) The vehicles may not be operated on a trunk highway with a pavement less than 24 feet wide.

(c) A vehicle operated under the permit must be equipped with a retractable or removable mirror on the left side so located that it will reflect to the driver a clear view of the highway for a distance of at least 200 feet to the rear of the vehicle.

(d) A vehicle operated under the permit must display red, orange, or yellow flags, 18 inches square, as markers at the front and rear and on both sides of the load. The load must be securely bound to the transporting vehicle.

(e) Farm vehicles not for hire carrying ~~round~~ baled hay, straw, or cornstalks less than 20 miles are exempt from the requirement to obtain a permit. All other requirements of this section apply to vehicles transporting ~~round~~ baled hay, straw, or cornstalks."

Page 11, delete section 11 and insert:

"Sec. 15. Minnesota Statutes 2008, section 169.871, subdivision 1a, is amended to read:

Subd. 1a. Special permit violations. (a) The owner or lessee of a vehicle that is operated with a gross weight in excess of a an adjusted weight limit ~~imposed by permit under sections 169.86 and 169.862~~ and a shipper who ships or tenders goods for shipment in a single truck or combination vehicle that exceeds a an adjusted weight limit ~~permitted under section 169.86 or 169.862~~ is liable for a civil penalty. The civil penalty is the greater of (1) as calculated at a rate of five cents per pound for each pound in excess of the highest weight ~~permitted under section 169.86 or 169.862~~ allowed by the permit or under section 169.826, subdivision 1, or (2) $100~~, whichever is greater~~.

(b) Any penalty imposed upon a defendant under this subdivision shall not exceed the penalty prescribed by this subdivision. Any fine paid by the defendant in a criminal overweight action that arose from the same overweight violation may not be applied toward payment of the civil penalty under this subdivision. A peace officer or Department of Public Safety employee described in section 299D.06 who cites a driver for a violation of the

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9613

adjusted weight ~~limitations established by permit pursuant to section 169.86 or 169.862~~ limit shall give written notice to the driver that the driver or another may also be liable for the civil penalty provided in this subdivision in the same or separate proceedings.

(c) For purposes of this subdivision, "adjusted weight limit" means a weight limit (1) imposed by a permit issued under this chapter, or (2) imposed under section 169.826, subdivision 1."

Page 14, after line 7, insert:

"ARTICLE 2

CROSS REFERENCES

Section 1. Minnesota Statutes 2008, section 169.823, as amended by Laws 2009, chapter 64, section 5, is amended to read:

169.823 TIRE WEIGHT LIMITS.

Subdivision 1. Pneumatic-tired vehicle. No vehicle or combination of vehicles equipped with pneumatic tires shall be operated upon the highways of this state:

(1) where the gross weight on any wheel exceeds 9,000 pounds on an unpaved street or highway or 10,000 pounds on a paved street or highway, unless posted to a lesser weight under section 169.87, subdivision 1;

(2) where the gross weight on any single axle exceeds 18,000 pounds on an unpaved street or highway or 20,000 pounds on a paved street or highway, unless posted to a lesser weight under section 169.87, subdivision 1;

(3) where the maximum wheel load:

(i) on the foremost and rearmost steering axles, exceeds 600 pounds per inch of tire width or the manufacturer's recommended load, whichever is less; or

(ii) on other axles, exceeds 500 pounds per inch of tire width or the manufacturer's recommended load, whichever is less; or

(4) where the gross weight on any group of axles exceeds the weights permitted under sections ~~169.822~~ 169.823 to 169.829 with any or all of the interior axles disregarded, and with an exterior axle disregarded if the exterior axle is a variable load axle that is not carrying its intended weight, and their gross weights subtracted from the gross weight of all axles of the group under consideration.

Subd. 2. Vehicle not equipped with pneumatic tires. A vehicle or combination of vehicles not equipped with pneumatic tires shall be governed by the provisions of sections ~~169.822~~ 169.823 to 169.829, except that the gross weight limitations shall be reduced by 40 percent.

Sec. 2. Minnesota Statutes 2008, section 169.826, as amended by Laws 2009, chapter 64, section 57, is amended to read:

169.826 GROSS WEIGHT SEASONAL INCREASES.

Subdivision 1. Winter increase amounts. The limitations provided in sections ~~169.822~~ 169.823 to 169.829 are increased by ten percent between the dates set by the commissioner for each zone established by the commissioner based on a freezing index model each winter.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9614

Subd. 1a. Harvest season increase amount; permit. The limitations provided in sections ~~169.822~~ 169.823 to 169.829 are increased by ten percent from the beginning of harvest to November 30 each year for the movement of sugar beets, carrots, and potatoes from the field of harvest to the point of the first unloading. Transfer of the product from a farm vehicle or small farm trailer, within the meaning of chapter 168, to another vehicle is not considered to be the first unloading. A permit issued under section 169.86, subdivision 1, paragraph (a), is required. The commissioner shall not issue permits under this subdivision if to do so will result in a loss of federal highway funding to the state.

Subd. 2. Duration. The duration of a ten percent increase in load limits is subject to limitation by order of the commissioner, subject to implementation of springtime load restrictions.

Subd. 3. Excess weight permit. When the ten percent increase is in effect, a permit is required for a motor vehicle, trailer, or semitrailer combination that has a gross weight in excess of 80,000 pounds, an axle group weight in excess of that prescribed in section 169.824, or a single axle weight in excess of 20,000 pounds and which travels on interstate routes.

Subd. 4. Weight limits set by other law. In cases where gross weights in an amount less than that set forth in sections ~~169.822~~ 169.823 to 169.829 are fixed, limited, or restricted on a highway or bridge by or under another section of this chapter, the lesser gross weight as fixed, limited, or restricted may not be exceeded and must control instead of the gross weights set forth in sections ~~169.822~~ 169.823 to 169.829.

Subd. 6. Permit extension. The commissioner may, after determining the ability of the highway structure and frost condition to support additional loads, grant a permit extending seasonal increases for vehicles using portions of routes falling within two miles of the southern boundary of the zone described under subdivision 1, clause (2).

Sec. 3. Minnesota Statutes 2009 Supplement, section 169.8261, subdivision 1, is amended to read:

Subdivision 1. Exemption. (a) For purposes of this section, "raw or unfinished forest products" include wood chips, paper, pulp, oriented strand board, laminated strand lumber, hardboard, treated lumber, untreated lumber, or barrel staves.

(b) In compliance with this section, a person may operate a vehicle or combination of vehicles to haul raw or unfinished forest products by the most direct route to the nearest paved highway on any highway with gross weights permitted under sections ~~169.822~~ 169.823 to 169.829.

Sec. 4. Minnesota Statutes 2008, section 169.828, subdivision 1, is amended to read:

Subdivision 1. Consecutive axle weight and number of axles. No vehicle alone nor any single vehicle of a combination of vehicles shall be equipped with more than four axles unless the additional axles are steering axles or castering axles; provided that the limitation on the number of axles as provided in sections ~~169.822~~ 169.823 to 169.829 shall not apply to any vehicle operated under permit pursuant to section 169.86. No vehicle alone nor any single vehicle of a combination of vehicles shall exceed the posted weight limit for a single vehicle.

Sec. 5. Minnesota Statutes 2008, section 169.829, is amended to read:

169.829 WEIGHT LIMITS NOT APPLICABLE TO CERTAIN VEHICLES.

Subdivision 1. City vehicle except on trunk highway. (a) The provisions of sections ~~169.822~~ 169.823 to 169.828 do not apply to vehicles operated exclusively in any city in this state which has in effect an ordinance regulating the gross weight of vehicles operated within that city.

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(b) This subdivision does not apply to trunk highways.

Subd. 2. Tow truck. Sections ~~169.822~~ 169.823 to 169.828 do not apply to a tow truck or towing vehicle when towing a disabled or damaged vehicle, when the movement is urgent, and when the movement is for the purpose of removing the disabled vehicle from the roadway to a place of safekeeping or to a place of repair.

Subd. 3. Utility vehicle. Sections ~~169.822~~ 169.823 to 169.828 do not apply to a utility vehicle that does not exceed a weight of 20,000 pounds per axle and is owned by:

(1) a public utility, as defined in section 216B.02;

(2) a municipality or municipal utility that operates that vehicle for its municipal electric, gas, or water system; and

(3) a cooperative electric association organized under chapter 308A.

Sec. 6. Minnesota Statutes 2009 Supplement, section 169.85, subdivision 2, is amended to read:

Subd. 2. Unloading. (a) Upon weighing a vehicle and load, as provided in this section, an officer may require the driver to stop the vehicle in a suitable place and remain standing until a portion of the load is removed that is sufficient to reduce the gross weight of the vehicle to the limit permitted under either section 168.013, subdivision 3, paragraph (b), or sections ~~169.822~~ 169.823 to 169.829, whichever is the lesser violation, if any. A suitable place is a location where loading or tampering with the load is not prohibited by federal, state, or local law, rule, or ordinance.

(b) Except as provided in paragraph (c), a driver may be required to unload a vehicle only if the weighing officer determines that (1) on routes subject to the provisions of sections ~~169.822~~ 169.823 to 169.829, the weight on an axle exceeds the lawful gross weight prescribed by sections ~~169.822~~ 169.823 to 169.829, by 2,000 pounds or more, or the weight on a group of two or more consecutive axles in cases where the distance between the centers of the first and last axles of the group under consideration is ten feet or less exceeds the lawful gross weight prescribed by sections ~~169.822~~ 169.823 to 169.829, by 4,000 pounds or more; or (2) the weight is unlawful on an axle or group of consecutive axles on a road restricted in accordance with section 169.87. Material unloaded must be cared for by the owner or driver of the vehicle at the risk of the owner or driver.

(c) If the gross weight of the vehicle does not exceed the vehicle's registered gross weight plus the weight allowance set forth in section 168.013, subdivision 3, paragraph (b), and plus, if applicable, the weight allowance permitted under section 169.826, then the driver is not required to unload under paragraph (b).

Sec. 7. Minnesota Statutes 2008, section 169.851, subdivision 5, is amended to read:

Subd. 5. Exception for farm and forest products. Subdivision 4 does not apply to the first haul of unprocessed or raw farm products and the transportation of raw and unfinished forest products, including wood chips, when the maximum weight limitations permitted under sections ~~169.822~~ 169.823 to 169.829 are not exceeded by more than ten percent.

Sec. 8. Minnesota Statutes 2008, section 169.86, subdivision 1a, is amended to read:

Subd. 1a. Seasonal permits for certain haulers. The commissioner of transportation, upon application in writing therefor, may issue special permits annually to any hauler authorizing the hauler to move vehicles or combinations of vehicles with weights exceeding by not more than ten percent the weight limitations contained in sections ~~169.822~~ 169.823 to 169.829, on interstate highways during the times and within the zones specified in sections ~~169.822~~ 169.823 to 169.829.

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Sec. 9. Minnesota Statutes 2009 Supplement, section 169.87, subdivision 2, is amended to read:

Subd. 2. Seasonal load restriction. (a) Unless restricted as provided in subdivision 1, between the dates set by the commissioner of transportation each year, the weight on any single axle shall not exceed:

(1) five tons on an unpaved street or highway; or

(2) ten tons on a paved street or highway.

(b) The gross weight on consecutive axles on an unpaved street or highway shall not exceed the gross weight allowed in sections ~~169.822~~ 169.823 to 169.829 multiplied by a factor of five divided by nine. This reduction shall not apply to the gross vehicle weight."

Renumber the sections in sequence and correct the internal references

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 3191, A bill for an act relating to human services; including sexual contact in secure treatment facilities as criminal sexual conduct in the fourth degree; amending Minnesota Statutes 2008, section 609.345, subdivision 1.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"Section 1. Minnesota Statutes 2008, section 609.344, subdivision 1, is amended to read:

Subdivision 1. Crime defined. A person who engages in sexual penetration with another person is guilty of criminal sexual conduct in the third degree if any of the following circumstances exists:

(a) the complainant is under 13 years of age and the actor is no more than 36 months older than the complainant. Neither mistake as to the complainant's age nor consent to the act by the complainant shall be a defense;

(b) the complainant is at least 13 but less than 16 years of age and the actor is more than 24 months older than the complainant. In any such case if the actor is no more than 120 months older than the complainant, it shall be an affirmative defense, which must be proved by a preponderance of the evidence, that the actor reasonably believes the complainant to be 16 years of age or older. In all other cases, mistake as to the complainant's age shall not be a defense. If the actor in such a case is no more than 48 months but more than 24 months older than the complainant, the actor may be sentenced to imprisonment for not more than five years. Consent by the complainant is not a defense;

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(d) the actor knows or has reason to know that the complainant is mentally impaired, mentally incapacitated, or physically helpless;

(e) the complainant is at least 16 but less than 18 years of age and the actor is more than 48 months older than the complainant and in a position of authority over the complainant. Neither mistake as to the complainant's age nor consent to the act by the complainant is a defense;

(f) the actor has a significant relationship to the complainant and the complainant was at least 16 but under 18 years of age at the time of the sexual penetration. Neither mistake as to the complainant's age nor consent to the act by the complainant is a defense;

(g) the actor has a significant relationship to the complainant, the complainant was at least 16 but under 18 years of age at the time of the sexual penetration, and:

(i) the actor or an accomplice used force or coercion to accomplish the penetration;

(ii) the complainant suffered personal injury; or

(iii) the sexual abuse involved multiple acts committed over an extended period of time.

Neither mistake as to the complainant's age nor consent to the act by the complainant is a defense;

(h) the actor is a psychotherapist and the complainant is a patient of the psychotherapist and the sexual penetration occurred:

(i) during the psychotherapy session; or

(ii) outside the psychotherapy session if an ongoing psychotherapist-patient relationship exists.

Consent by the complainant is not a defense;

(i) the actor is a psychotherapist and the complainant is a former patient of the psychotherapist and the former patient is emotionally dependent upon the psychotherapist;

(j) the actor is a psychotherapist and the complainant is a patient or former patient and the sexual penetration occurred by means of therapeutic deception. Consent by the complainant is not a defense;

(k) the actor accomplishes the sexual penetration by means of deception or false representation that the penetration is for a bona fide medical purpose. Consent by the complainant is not a defense;

(l) the actor is or purports to be a member of the clergy, the complainant is not married to the actor, and:

(i) the sexual penetration occurred during the course of a meeting in which the complainant sought or received religious or spiritual advice, aid, or comfort from the actor in private; or

(ii) the sexual penetration occurred during a period of time in which the complainant was meeting on an ongoing basis with the actor to seek or receive religious or spiritual advice, aid, or comfort in private. Consent by the complainant is not a defense;

(m) the actor is an employee, independent contractor, or volunteer of a state, county, city, or privately operated adult or juvenile correctional system, or secure treatment facility, or treatment facility providing services to clients civilly committed as mentally ill and dangerous, sexually dangerous persons, or sexual psychopathic personalties,

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9618

including, but not limited to, jails, prisons, detention centers, or work release facilities, and the complainant is a resident of a facility or under supervision of the correctional system. Consent by the complainant is not a defense. "Secure treatment facility" has the meaning given in section 253B.02, subdivision 18a;

(n) the actor provides or is an agent of an entity that provides special transportation service, the complainant used the special transportation service, and the sexual penetration occurred during or immediately before or after the actor transported the complainant. Consent by the complainant is not a defense; or

(o) the actor performs massage or other bodywork for hire, the complainant was a user of one of those services, and nonconsensual sexual penetration occurred during or immediately before or after the actor performed or was hired to perform one of those services for the complainant."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, delete "fourth degree" and insert "third and fourth degrees"

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 3237, A bill for an act relating to human services; changing health care eligibility provisions; making changes to individualized education plan requirements; state health access program; coverage of private duty nursing services; children's health insurance reauthorization act; long-term care partnership; asset transfers; community clinics; dental benefits; prior authorization for health services; drug formulary committee; preferred drug list; multisource drugs; administrative uniformity committee; health plans; claims against the state; income standards for eligibility; prepaid health plans; amending Minnesota Statutes 2008, sections 62A.045; 62Q.80; 62S.24, subdivision 8; 256B.055, subdivision 10; 256B.057, subdivision 1; 256B.0571, subdivision 6; 256B.0625, subdivisions 13c, 13g, 25, 30, by adding a subdivision; 256L.04, subdivision 7b; Minnesota Statutes 2009 Supplement, sections 15C.13; 256B.032; 256B.056, subdivision 1c; 256B.0571, subdivision 8; 256B.0625, subdivisions 9, 13e, 26; 256B.69, subdivisions 5a, 23; 256D.03, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 62Q; 62S; repealing Minnesota Statutes 2008, sections 256B.0571, subdivision 10; 256B.0595, subdivisions 1b, 2b, 3b, 4b, 5.

Reported the same back with the following amendments:

Pages 3 to 4, delete section 1

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, delete "coverage of private duty nursing services;"

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9619

Carlson from the Committee on Finance to which was referred:

H. F. No. 3329, A bill for an act relating to education finance; clarifying the retired employee health benefits levy calculation; amending Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 3330, A bill for an act relating to education; clarifying revenue definitions for school districts and charter schools; amending Minnesota Statutes 2008, section 125A.79, subdivision 1.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 3515, A bill for an act relating to state government; specifying the name of the state accounting and procurement system; proposing coding for new law in Minnesota Statutes, chapter 16A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. APPROPRIATION; DEPARTMENT OF REVENUE.

Subdivision 1. Tax system management. (a) $2,428,500 is appropriated to the commissioner of revenue for additional activities to identify and collect tax liabilities from individuals and businesses that currently do not pay all taxes owed. This initiative is expected to result in new general fund revenues of $6,532,500 for fiscal year 2011. This initiative is in addition to any other initiative enacted in the 2010 legislative session.

(b) The department must report to the chairs of the house of representative Ways and Means and senate Finance Committees by March 15, 2011, and January 15, 2012, on the following performance indicators:

(1) the number of corporations noncompliant with the corporate tax system each year and the percentage and dollar amounts of valid tax liabilities collected;

(2) the number of businesses noncompliant with the sales and use tax system and the percentage and dollar amount of the valid tax liabilities collected; and

(3) the number of individual noncompliant cases resolved and the percentage and dollar amount of valid tax liabilities collected.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9620

(c) The reports must also identify base-level expenditures and staff positions related to compliance and audit activities, including baseline information as of January 1, 2009. The information must be provided at the budget activity level.

Subd. 2. Debt collection management. $935,000 is for additional activities to identify and collect tax liabilities from individuals and businesses that currently do not pay all taxes owed. This initiative is expected to result in new general fund revenues of $6,900,000 for fiscal year 2011. This initiative is in addition to any other initiative enacted in the 2010 legislative session.

Subd. 3. Telecommuting. To the extent possible, staff hired for the compliance initiative under this section must telecommute.

Sec. 2. REQUEST FOR PROPOSALS.

(a) The commissioner of revenue shall issue a request for proposals for a contract to implement a system of tax analytics and business intelligence tools to enhance the state's tax collection process and revenues by improving the means of identifying candidates for audit and collection activities and prioritizing those activities to provide the highest returns on auditors' and collection agents' time. The request for proposals must require that the system recommended and implemented by the contractor:

(1) leverage the Department of Revenue's existing data and other available data sources to build models that more effectively and efficiently identify accounts for audit review and collections;

(2) leverage advanced analytical techniques and technology such as pattern detection, predictive modeling, clustering, outlier detection, and link analysis to identify suspect accounts for audit review and collections;

(3) leverage a variety of approaches and analytical techniques to rank accounts and improve the success rate and the return on investment of department employees engaged in audit activities;

(4) leverage technology to make the audit process more sustainable and stable, even with turnover of department auditing staff;

(5) provide optimization capabilities to more effectively prioritize collections and increase the efficiency of employees engaged in collections activities; and

(6) incorporate mechanisms to decrease wrongful auditing and reduce interference with Minnesota taxpayers who are fully complying with the laws.

(b) Based on acceptable responses to the request for proposals, the commissioner shall enter into a contract for the services specified in paragraph (a) by July 1, 2012. The contract must incorporate a performance-based vendor financing option whereby the vendor shares in the risk of the project's success.

EFFECTIVE DATE. This section is effective July 1, 2011."

Delete the title and insert:

"A bill for an act relating to state government; appropriating money to the commissioner of revenue for additional activities to identify and collect tax liabilities; directing the commissioner to issue a request for proposals for a contract to implement a related system of tax analytics and business intelligence tools."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9621

Carlson from the Committee on Finance to which was referred:

H. F. No. 3741, A bill for an act relating to the state budget; modifying certain payment schedules; amending Minnesota Statutes 2008, sections 276.112; 289A.60, by adding a subdivision; Minnesota Statutes 2009 Supplement, sections 137.025, subdivision 1; 289A.20, subdivision 4.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 2840, 3191 and 3237 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Jackson introduced:

H. F. No. 3745, A bill for an act relating to human services; increasing payment rates for nursing facilities in Mille Lacs County to the peer group one median rate; amending Minnesota Statutes 2008, section 256B.441, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Finance.

Clark introduced:

H. F. No. 3746, A bill for an act relating to environment; requiring enhanced occupational safety standards for closed landfill cleanup; requiring reports; proposing coding for new law in Minnesota Statutes, chapter 115B.

The bill was read for the first time and referred to the Committee on Environment Policy and Oversight.

Olin and Marquart introduced:

H. F. No. 3747, A bill for an act relating to property taxation; allowing the Thief River Falls airport authority to levy against referendum market value rather than net tax capacity.

The bill was read for the first time and referred to the Committee on Taxes.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9622

Simon introduced:

H. F. No. 3748, A bill for an act relating to local government; authorizing chairs and ranking minority members of the Committees on Finance and Ways and Means to request local impact notes; amending Minnesota Statutes 2008, section 3.987, subdivision 1.

The bill was read for the first time and referred to the Committee on Finance.

Sertich moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by Speaker pro tempore Pelowski.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Madam Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 3108, A bill for an act relating to elections; changing and clarifying certain provisions; amending Minnesota Statutes 2008, sections 201.016, subdivision 1a; 201.061, subdivision 1; 201.11; 201.12; 201.121, subdivision 3; 201.13; 201.14; 201.15, subdivisions 1, 2; 201.155; 201.171; 203B.02, subdivision 3; 203B.04, subdivision 1; 203B.06, subdivisions 1, as amended, 5; 203B.081, as amended; 203B.16, subdivision 2; 203B.19; 203B.227; 204B.04, subdivision 2; 204B.135, subdivision 4; 204B.14, by adding a subdivision; 204B.18, subdivision 1; 204B.22, subdivisions 1, 2; 204B.24; 204B.27, subdivisions 2, 3; 204B.28, by adding a subdivision; 204B.38; 204C.02; 204C.04, subdivision 1; 204C.06, subdivision 1; 204C.08; 204C.09, subdivision 1; 204C.12, subdivision 2; 204C.13, subdivision 2; 204C.24, subdivision 1; 204C.28, subdivisions 1, 2; 204C.33, subdivision 1; 204C.35, subdivisions 2, 3; 204C.36, subdivisions 3, 4; 204C.37; 204D.04, subdivision 2; 204D.09, subdivision 2; 204D.10, subdivision 1; 204D.17; 204D.19; 204D.20, subdivision 1; 205.065, subdivision 1, as amended; 205.07, subdivision 1, by adding a subdivision; 205.13, subdivisions 1, 2; 205.16, subdivisions 2, 3, 4, as amended, 5, as amended; 205A.03, subdivision 2, as amended; 205A.04, subdivision 1; 205A.05, subdivision 1; 205A.07, subdivisions 3, as amended, 3a, as amended, 3b, as amended; 205A.11, subdivision 3; 206.57, subdivision 6; 208.03; 365.51, subdivision 1; 375.101, subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapters 201; 204D; 205; 205A; 373; repealing Minnesota Statutes 2008, sections 3.22; 204B.22, subdivision 3; 204D.10, subdivision 2; 206.57, subdivision 7; 206.805, subdivision 2; 206.91.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9623

Madam Speaker:

I hereby announce the passage by the Senate of the following House Files, herewith returned:

H. F. No. 2561, A bill for an act relating to highways; designating a Veterans Memorial Bridge on marked Trunk Highway 95 in the city of North Branch; amending Minnesota Statutes 2008, section 161.14, by adding a subdivision.

H. F. No. 2786, A bill for an act relating to the city of Duluth; providing for membership of the Spirit Mountain Recreation Area Authority; amending Laws 1973, chapter 327, section 2, subdivision 2, as amended.

H. F. No. 2915, A bill for an act relating to bridges; providing for ongoing prioritization of bridge projects; amending Minnesota Statutes 2008, section 165.14, subdivision 4, by adding a subdivision.

H. F. No. 3350, A bill for an act relating to local government; prohibiting city employees from serving on the city council or as mayor; amending Minnesota Statutes 2008, section 412.02, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 410.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Madam Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 2535, 2709, 2912, 2923, 2927, 3027 and 2877.

Colleen J. Pacheco, First Assistant Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 2535, A bill for an act relating to cable communications; clarifying requirements for the granting of additional cable franchises; amending Minnesota Statutes 2008, section 238.08, subdivision 1.

The bill was read for the first time and referred to the Committee on Commerce and Labor.

S. F. No. 2709, A bill for an act relating to corrections; modifying inmate payment of room and board to include any time credited for time served; amending Minnesota Statutes 2008, section 641.12, subdivision 3.

The bill was read for the first time.

Olin moved that S. F. No. 2709 and H. F. No. 3038, now on the Calendar for the Day, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2912, A bill for an act relating to human services; amending children's mental health policy provisions; making a technical change to community health workers; amending Minnesota Statutes 2008, sections 256B.761; 260C.157, subdivision 3; Minnesota Statutes 2009 Supplement, sections 245.4885, subdivisions 1, 1a; 256B.0625, subdivision 49; 256B.0943, subdivision 9.

The bill was read for the first time.

Hosch moved that S. F. No. 2912 and H. F. No. 2926, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9624

S. F. No. 2923, A bill for an act relating to health; modifying provisions regulating home health care services; amending Minnesota Statutes 2008, sections 144A.45, subdivisions 2, 4; 144A.46, subdivisions 2, 3; Minnesota Statutes 2009 Supplement, section 144A.46, subdivision 1.

The bill was read for the first time.

Hosch moved that S. F. No. 2923 and H. F. No. 3196, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2927, A bill for an act relating to veterans; clarifying and amending certain Veterans Preference Act provisions; amending Minnesota Statutes 2008, section 197.481, subdivisions 1, 2, 4.

The bill was read for the first time.

Juhnke moved that S. F. No. 2927 and H. F. No. 3508, now on the Calendar for the Day, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 3027, A bill for an act relating to human services; changing health care eligibility provisions; making changes to individualized education plan requirements; state health access program; children's health insurance reauthorization act; long-term care partnership; asset transfers; community clinics; dental benefits; prior authorization for health services; drug formulary committee; preferred drug list; multisource drugs; administrative uniformity committee; health plans; claims against the state; income standards for eligibility; prepaid health plans; amending Minnesota Statutes 2008, sections 62A.045; 62Q.80; 62S.24, subdivision 8; 256B.055, subdivision 10; 256B.057, subdivision 1; 256B.0571, subdivision 6; 256B.0625, subdivisions 13c, 13g, 25, 30, by adding a subdivision; 256L.04, subdivision 7b; Minnesota Statutes 2009 Supplement, sections 15C.13; 256B.056, subdivision 1c; 256B.0571, subdivision 8; 256B.0625, subdivisions 9, 13e, 26; 256B.69, subdivisions 5a, 23; 256D.03, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 62S; repealing Minnesota Statutes 2008, sections 256B.0571, subdivision 10; 256B.0595, subdivisions 1b, 2b, 3b, 4b, 5.

The bill was read for the first time.

Huntley moved that S. F. No. 3027 and H. F. No. 3237, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2877, A bill for an act relating to health-related occupations; providing an exception for continuing education requirements for licensed professional counselors; amending Minnesota Statutes 2008, section 148B.54, by adding a subdivision.

The bill was read for the first time.

Simon moved that S. F. No. 2877 and H. F. No. 3212, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

The following Conference Committee Report was received:

CONFERENCE COMMITTEE REPORT ON H. F. NO. 1671

A bill for an act relating to the financing and operation of state and local government; appropriating money or reducing appropriations for state government, higher education and economic development, environment and natural resources, activities or programs of Department of Commerce, agriculture, veterans affairs, transportation, public safety, judiciary, Uniform Laws Commission, Private Detective Board, human rights, corrections, Sentencing

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9625

Guidelines Commission, minority boards, public facilities authority, tourism, humanities, public broadcasting, zoos, science museum, and Housing Finance Agency; modifying loan, grant, and scholarship provisions; funding certain projects for veterans; increasing bond limits; establishing a central system office and governing credit transfers for the Minnesota State Colleges and Universities; requiring bond issues for certain projects; modifying investment disposition of mineral fund; modifying mineral fund payments in lieu of taxes; providing for or modifying certain provisions relating to membership of tourism council and film and TV reimbursement amounts; modifying provisions relating to continuing education for certain licensed occupations, securities transaction exemptions, mortgages, and operation of state government; modifying certain Boards of Barber Examiners and Cosmetology provisions; establishing a new trunk highway emergency relief account; amending provisions related to trunk highway bonding, hazardous materials permits, fire safety account, uses of public safety service fee, grants for emergency shelters, and in-service training for peace officers; authorizing county sentence to service programs to charge fees; changing provisions relating to agriculture and veterans affairs; changing provisions for expenses of governor-elect, disposal of old state-owned buildings, public access to parking spaces, fleet management, and lease purchase agreements; providing for operation of a state recycling center and a state Webmaster for state Web sites; providing for Web access to appropriations information; requiring two-sided printing for state use; requiring standards to enhance public access to state electronic data; providing for zero-based budgeting; creating a commission to reengineer delivery of government services; providing for transfers to Help America Vote Act account; changing and creating funds and accounts; modifying provisions for tax return preparers; requesting proposals for enhancing the state's tax collection process and revenues; modifying calculation of state aids and credits for local government; authorizing and adjusting fees; establishing a pilot project; making technical changes; requiring reports; providing for rulemaking; amending Minnesota Statutes 2008, sections 4.51; 16B.04, subdivision 2; 16B.24, subdivision 3; 16B.48, subdivision 2; 16E.04, subdivision 2; 16E.05, by adding a subdivision; 18G.07; 79.34, subdivision 1; 80A.46; 80A.65, subdivision 1; 97A.061, subdivision 1; 103G.705, subdivision 2; 115A.15, subdivision 6; 116L.17, subdivision 2; 116U.25; 116U.26; 136A.121, subdivision 6; 136A.1701, subdivision 4; 136A.29, subdivision 9; 154.06; 154.065, subdivision 2; 154.07, by adding a subdivision; 154.15, by adding a subdivision; 161.04, by adding a subdivision; 273.1384, by adding a subdivision; 297I.06, subdivision 3; 326B.148, subdivision 1; 403.11, subdivision 1; 471.6175, subdivision 4; 477A.013, subdivision 9; 477A.03, subdivisions 2a, 2b; 477A.12, subdivision 1; 611A.32, subdivisions 1, 2; 626.8458, subdivision 5; 641.12, by adding a subdivision; Minnesota Statutes 2009 Supplement, sections 16A.152, subdivision 2; 16A.82; 16E.02, subdivision 1; 45.30, subdivision 6; 136A.121, subdivision 9; 136F.98, subdivision 1; 154.002; 154.003; 155A.23, by adding a subdivision; 155A.24, subdivision 2, by adding subdivisions; 155A.25; 190.19, subdivision 2a; 270C.145; 273.111, subdivision 9; 275.70, subdivision 5; 289A.08, subdivision 16; 298.294; 299A.45, subdivision 1; 357.021, subdivision 7; Laws 2007, chapter 45, article 1, section 3, subdivisions 4, as amended, 5, as amended; Laws 2009, chapter 37, article 2, section 13; Laws 2009, chapter 78, article 1, section 3, subdivision 2; article 7, section 2; Laws 2009, chapter 83, article 1, sections 10, subdivisions 4, 7; 11; 14, subdivision 2; Laws 2009, chapter 94, article 1, section 3, subdivision 5; article 3, section 2, subdivision 3; Laws 2009, chapter 95, article 1, sections 3, subdivisions 6, 21; 5, subdivision 2; Laws 2009, chapter 101, article 1, section 31; proposing coding for new law in Minnesota Statutes, chapters 10; 15B; 16A; 16B; 97A; 136A; 136F; 477A; repealing Minnesota Statutes 2008, sections 13.721, subdivision 4; 136A.127, subdivisions 1, 3, 5, 6, 7, 10, 11; 154.07, subdivision 5; 176.135, subdivision 1b; 221.0355, subdivisions 1, 2, 3, 4, 5, 6, 7, 7a, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18; 477A.03, subdivision 5; Minnesota Statutes 2009 Supplement, sections 135A.61; 136A.121, subdivision 9b; 136A.127, subdivisions 2, 4, 9, 9b, 10a, 14.

March 28, 2010

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

We, the undersigned conferees for H. F. No. 1671 report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 1671 be further amended as follows:

Journal of the House - 82nd Day - Monday, March 29, 2010 - Top of Page 9626

Delete everything after the enacting clause and insert:

"ARTICLE 1

SUMMARY

Section 1. GENERAL FUND SUMMARY.

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

2010 2011 Total

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

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

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

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

Veterans Affairs -0- 200,000 200,000

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

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

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

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

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

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

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

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

ARTICLE 2

HIGHER EDUCATION

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010 2011 Total

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

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Subd. 2. Summary by Agency - All Funds. The amounts shown in this subdivision summarize direct appropriations, by agency, made in this article.

2010 2011 Total

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

Board of Trustees of the Minnesota State

Colleges and Universities -0- (10,467,000) (10,467,000)

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

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

Sec. 2. APPROPRIATIONS.

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

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 3. OFFICE OF HIGHER EDUCATION

Subdivision 1. Total Appropriation $1,427,000 $(1,840,000)

The appropriation additions or reductions for each purpose are shown in the following subdivisions.

Subd. 2. State Work-Study -0- (1,768,000)

This is a onetime reduction.

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

Subd. 4. Interstate Tuition Reciprocity 1,487,000 264,000

This is a onetime appropriation.

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

Subd. 6. MnLink Gateway and Minitex -0- (205,000)

This is a onetime reduction.

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

Subdivision 1. Total Appropriation $-0- $(10,467,000)

The appropriation additions or reductions for each purpose are shown in the following subdivisions.

The Board of Trustees must make a good-faith effort to make the reductions required by this section at campuses and the central office in a manner that minimizes reductions related to providing direct services to students and that maximizes reductions for administrative services not providing direct services to students.

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

Subd. 3. Operations and Maintenance -0- (9,967,000)

For fiscal years 2012 and 2013, the base for operations and maintenance is $592,792,000 each year.

Subd. 4. Cook County Higher Education

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

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

Subdivision 1. Total Appropriation $-0- $(36,120,000)

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

Subd. 2. Operations and Maintenance -0- (32,223,000)

This reduction is from operations and maintenance. The Board of Regents must make a good-faith effort to make the reductions required by this section in a manner that minimizes reductions related to providing direct services to students and that maximizes reductions for administrative services not providing direct services to students. The Board of Regents is requested to consider, if feasible, making voluntary for its lowest paid employees any furlough program designed to meet budget shortfalls.

For fiscal years 2012 and 2013, the base for operations and maintenance is $578,370,000 each year.

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Subd. 3. Special Appropriations

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

(b) Health Sciences -0- (281,000)

$18,000 in fiscal year 2011 is a reduction to the appropriation to support up to 12 resident physicians in the St. Cloud Hospital family practice residency program.

Of the appropriation in Laws 2009, chapter 95, article 1, section 5, subdivision 5, paragraph (b), for Health Sciences, $645,000 each year is for graduate family medicine education programs at Hennepin County Medical Center.

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

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

Sec. 6. Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9, is amended to read:

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

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

Sec. 7. Minnesota Statutes 2008, section 136A.1701, subdivision 4, is amended to read:

Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such terms and conditions as the office may prescribe. ~~The~~ Under the SELF IV program, the principal amount of a loan to an undergraduate student for a single academic year shall not exceed $6,000 for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007. Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed $7,500 effective July 1, 2006 $7,500 per grade level. The aggregate principal amount of all loans made ~~under this section~~ subject to this paragraph to an undergraduate student shall not exceed ~~$34,500 through June 30, 2007, and~~ $37,500 ~~after June 30, 2007~~. The principal amount of a loan to a graduate student for a single academic year shall not exceed $9,000. The aggregate principal amount of all loans made ~~under this section~~ subject to this paragraph to a student as an undergraduate and graduate student shall not exceed ~~$52,500 through June 30, 2007, and~~ $55,500 ~~after June 30, 2007~~. The amount of the loan may not exceed the cost of attendance less all other financial aid, including PLUS loans or other similar parent loans borrowed on the student's behalf. The cumulative SELF loan debt must not exceed the borrowing maximums in paragraph (b).

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(b) The cumulative undergraduate borrowing maximums for SELF IV loans are:

(1) ~~effective July 1, 2006, through June 30, 2007:~~

~~(i) grade level 1, $6,000;~~

~~(ii) grade level 2, $12,000;~~

~~(iii) grade level 3, $19,500;~~

~~(iv) grade level 4, $27,000; and~~

~~(v) grade level 5, $34,500; and~~

~~(2) effective July 1, 2007:~~

~~(i)~~ grade level 1, $7,500;

~~(ii)~~ (2) grade level 2, $15,000;

~~(iii)~~ (3) grade level 3, $22,500;

~~(iv)~~ (4) grade level 4, $30,000; and

~~(v)~~ (5) grade level 5, $37,500.

(c) The principal amount of a SELF V or subsequent phase loan to students enrolled in a bachelor's degree program, postbaccalaureate, or graduate program must not exceed $10,000 per grade level. For all other eligible students, the principal amount of the loan must not exceed $7,500 per grade level. The aggregate principal amount of all loans made subject to this paragraph to a student as an undergraduate and graduate student must not exceed $70,000. The amount of the loan must not exceed the cost of attendance less all other financial aid, including PLUS loans or other similar parent loans borrowed on the student's behalf. The cumulative SELF loan debt must not exceed the borrowing maximums in paragraph (d).

(d)(1) The cumulative borrowing maximums for SELF V loans and subsequent phases for students enrolled in a bachelor's degree program or postbaccalaureate program are:

(i) grade level 1, $10,000;

(ii) grade level 2, $20,000;

(iii) grade level 3, $30,000;

(iv) grade level 4, $40,000; and

(v) grade level 5, $50,000.

(2) For graduate level students, the borrowing limit is $10,000 per nine-month academic year, with a cumulative maximum for all SELF debt of $70,000.

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(3) For all other eligible students, the cumulative borrowing maximums for SELF V loans and subsequent phases are:

(i) grade level 1, $7,500;

(ii) grade level 2, $15,000;

(iii) grade level 3, $22,500;

(iv) grade level 4, $30,000; and

(v) grade level 5, $37,500.

Sec. 8. Minnesota Statutes 2008, section 136A.1701, subdivision 7, is amended to read:

Subd. 7. Repayment of loans. (a) The office shall establish repayment procedures for loans made under this section, but in no event shall the period of permitted repayment for SELF II or SELF III loans exceed ten years from the eligible student's termination of the student's postsecondary academic or vocational program, or 15 years from the date of the student's first loan under this section, whichever is less.

(b) For SELF IV loans ~~from phases after SELF III~~, eligible students with aggregate principal loan balances from all SELF phases that are less than $18,750 shall have a repayment period not exceeding ten years from the eligible student's graduation or termination date. For SELF IV loans ~~from phases after SELF III~~, eligible students with aggregate principal loan balances from all SELF phases of $18,750 or greater shall have a repayment period not exceeding 15 years from the eligible student's graduation or termination date. For SELF IV loans ~~from phases after SELF III~~, the loans shall enter repayment no later than seven years after the first disbursement date on the loan.

(c) For SELF loans from phases after SELF IV, eligible students with aggregate principal loan balances from all SELF phases that are:

(1) less than $20,000, must have a repayment period not exceeding ten years from the eligible student's graduation or termination date;

(2) $20,000 up to $40,000, must have a repayment period not exceeding 15 years from the eligible student's graduation or termination date; and

(3) $40,000 or greater, must have a repayment period not exceeding 20 years from the eligible student's graduation or termination date. For SELF loans from phases after SELF IV, the loans must enter repayment no later than nine years after the first disbursement date of the loan.

Sec. 9. Minnesota Statutes 2008, section 136A.29, subdivision 9, is amended to read:

Subd. 9. Revenue bonds; limit. The authority is authorized and empowered to issue revenue bonds whose aggregate principal amount at any time shall not exceed ~~$950,000,000~~ $1,300,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving, furnishing, or equipping one or more projects or parts thereof.

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

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Sec. 10. Minnesota Statutes 2008, section 136A.69, subdivision 1, is amended to read:

Subdivision 1. Registration fees. (a) The office shall collect reasonable registration fees that are sufficient to recover, but do not exceed, its costs of administering the registration program. The office shall charge ~~$1,100 for initial registration fees and $950 for annual renewal fees.~~ the fees listed in paragraphs (b) and (c) for new registrations.

(b) A new school offering no more than one degree at each level during its first year must pay registration fees for each applicable level in the following amounts:

associate degree $2,000

baccalaureate degree $2,500

master's degree $3,000

doctorate degree $3,500

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

nondegree program $250

additional associate degree $250

additional baccalaureate degree $500

additional master's degree $750

additional doctorate degree $1,000

(d) The annual renewal registration fee is $1,200.

Sec. 11. Minnesota Statutes 2008, section 136A.69, subdivision 3, is amended to read:

Subd. 3. Degree or nondegree program addition fee. The office processing ~~fee~~ fees for adding a degree or nondegree program that represents a significant departure in the objectives, content, or method of delivery of degree or nondegree programs that are currently offered by the school is $500 per degree or nondegree program. are as follows:

nondegree program that is part of existing degree -0-

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

majors, specializations, emphasis areas, concentrations,

and other similar areas of emphasis $250 each

associate degrees $500 each

baccalaureate degrees $500 each

master's degrees $750 each

doctorate degrees $2,000 each

Sec. 12. Minnesota Statutes 2008, section 136A.69, subdivision 4, is amended to read:

Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit or outside consultant is necessary to review or evaluate any new or revised degree or nondegree program, the office shall be reimbursed for the expenses incurred related to the review as follows:

(1) ~~$300~~ $400 for the team base fee or for a paper review conducted by a consultant if the office determines that a fact-finding visit is not required;

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(2) $300 for each day or part thereof on site per team member; and

(3) the actual cost of customary meals, lodging, and related travel expenses incurred by team members.

Sec. 13. Minnesota Statutes 2009 Supplement, section 136F.98, subdivision 1, is amended to read:

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

Sec. 14. Minnesota Statutes 2008, section 141.255, is amended to read:

141.255 FEES.

Subdivision 1. Initial licensure fee. The office processing fee for an initial licensure application is:

(1) ~~$1,500~~ $2,500 for a school that will offer no more than one program during its first year of operation;

(2) $750 for a school licensed exclusively due to the use of the term "college," "university," "academy," or "institute" in its name, or licensed exclusively in order to participate in state grant or SELF loan financial aid programs; and

~~(2) $2,000 for a school that will offer two or more nondegree level programs~~

(3) $2,500, plus $500 for each additional program offered by the school, for a school during its first year of operation~~; and~~.

~~(3) $2,500 for a school that will offer two or more degree level programs during its first year of operation.~~

Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a renewal licensure application is:

~~(1) for a category A school, as determined by the office, the fee is $865 if the school offers one program or $1,150 if the school offers two or more programs; and~~

~~(2) for a category B or C school, as determined by the office, the fee is $430 if the school offers one program or $575 if the school offers two or more programs.~~

(1) for a school that offers one program, the license renewal fee is $1,150;

(2) for a school that offers more than one program, the license renewal fee is $1,150, plus $200 for each additional program with a maximum renewal licensing fee of $2,000;

(3) for a school licensed exclusively due to the use of the term "college," "university," "academy," or "institute" in its name, the license renewal fee is $750; and

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(4) for a school licensed by another state agency and also licensed with the office exclusively in order to participate in state student aid programs, the license renewal fee is $750.

(b) If a license renewal application is not received by the office by the close of business at least 60 days before the expiration of the current license, a late fee of $100 per business day, not to exceed $3,000, shall be assessed.

~~Subd. 3. Degree level addition fee. The office processing fee for adding a degree level to an existing program is $2,000 per program.~~

Subd. 4. Program addition fee. The office processing fee for adding a program ~~that represents a significant departure in the objectives, content, or method of delivery of programs~~ to those that are currently offered by the school is $500 per program.

Subd. 5. Visit or consulting fee. If the office determines that a fact-finding visit or outside consultant is necessary to review or evaluate any new or revised program, the office shall be reimbursed for the expenses incurred related to the review as follows:

(1) ~~$300~~ $400 for the team base fee or for a paper review conducted by a consultant if the office determines that a fact-finding visit is not required;

(2) $300 for each day or part thereof on site per team member; and

(3) the actual cost of customary meals, lodging, and related travel expenses incurred by team members.

Subd. 6. Modification fee. The fee for modification of any existing program is $100 and is due if there is:

(1) an increase or decrease of 25 percent or more, from the original date of program approval, in clock hours, credit hours, or calendar length of an existing program;

(2) a change in academic measurement from clock hours to credit hours or vice versa; or

(3) an addition or alteration of courses that represent a 25 percent change or more in the objectives, content, or methods of delivery.

Subd. 7. Solicitor permit fee. The solicitor permit fee is $350 and must be paid annually.

Subd. 8. Multiple location fee. Schools wishing to operate at multiple locations must pay:

(1) $250 per location, for locations two to five ~~locations~~; and

(2) an additional ~~$50~~ $100 for each location over five.

Subd. 9. Student transcript fee. The fee for a student transcript requested from a closed school whose records are held by the office is ~~$10~~ $15, with a maximum of five transcripts per request.

Subd. 10. Public office documents; copies. The ~~office shall establish rates~~ rate for copies of any public office document shall be 50 cents per page.

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

Subd. 6. Achieve Scholarship Program 4,350,000 4,350,000

For scholarships under Minnesota Statutes, section 136A.127. The office shall transfer the appropriation for fiscal year 2011 to the appropriation for state grants.

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For fiscal years 2012 and 2013, the base for the Achieve Scholarship Program is $2,350,000 each year.

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

Subd. 12. Technical and Community College Emergency Grants 150,000 150,000

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

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

Subd. 21. Transfers

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

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

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

Subd. 2. Operations and Maintenance 550,345,000 604,239,000

(a) This appropriation includes funding for operation and maintenance of the system.

(b) The Board of Regents shall submit expenditure reduction plans by March 15, 2010, to the committees of the legislature with responsibility for higher education finance to achieve the 2012-2013 base established in this section. The plan must focus on protecting direct instruction.

(c) Appropriations under this subdivision may be used for a new scholarship under Minnesota Statutes, section 137.0225, to complement the University's Founders scholarship.

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(d) This appropriation includes amounts for an Ojibwe Indian language program on the Duluth campus.

(e) This appropriation includes money for the Dakota language teacher training immersion program on the Twin Cities campus to prepare teachers to teach in Dakota language immersion programs.

(f) This appropriation includes money for the Veterinary Diagnostic Laboratory to preserve accreditation.

(g) This appropriation includes money in fiscal year 2010 for a onetime grant to the Minnesota Wildlife Rehabilitation Center ~~for their uncompensated expenses~~ in an amount equal to the loan balance as of March 11, 2010, for expenses related to the center's move from the campus.

(h) For fiscal years 2012 and 2013, the base for operations and maintenance is $596,930,000 each year.

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

Sec. 19. OFFICE OF HIGHER EDUCATION CARRY FORWARD.

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

Sec. 20. ACHIEVE SCHOLARSHIP PROGRAM FISCAL YEAR 2011 MODIFICATIONS.

(a) Notwithstanding Minnesota Statutes, section 136A.127, for achieve scholarship awards in fiscal year 2011, the achieve scholarship program shall be modified as provided in this section.

(b) Awards shall only be made to students who have an assigned family responsibility of zero.

(d) A first round of awards shall be made to students for which the Office of Higher Education has received a complete application by August 31, 2010. If there are insufficient appropriations to make full awards to each student, all awards under this paragraph shall be reduced by an equal amount sufficient to meet the insufficiency.

(e) If appropriations remain after the first round, awards shall be made on a first-come, first-served basis.

(f) Except as modified by this section, the remaining unmodified provisions of Minnesota Statutes, section 136A.127, shall govern achieve scholarship awards made in fiscal year 2011.

Sec. 21. REPEALER.

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

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ARTICLE 3

ENVIRONMENT AND NATURAL RESOURCES

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made in this article.

2010 2011 Total

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

Environmental -0- 535,000 535,000

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

Sec. 2. APPROPRIATIONS.

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

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 3. POLLUTION CONTROL AGENCY

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

Appropriations by Fund

2010 2011

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

Environmental -0- 535,000

The appropriation additions or reductions for each purpose are shown in the following subdivisions.

In order to leverage nonstate money or to address high priority needs identified by the commissioner, the commissioner may shift appropriations in Laws 2009, chapter 37, article 1, section 3, available in one fiscal year to the other fiscal year within each program. Any adjustments made under this paragraph do not affect the agency base for the programs affected.

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

Appropriations by Fund

General (257,000) (942,000)

Environmental -0- 535,000

The commissioner shall recover the cost of attorney general services related to environmental assessment worksheets from the project proposers.

$485,000 in 2011 is a reduction in the appropriation for general water program operations.

$9,000 in 2010 and $21,000 in 2011 are reductions in the appropriations for community technical assistance and education.

$485,000 in 2011 is appropriated from the environmental fund for attorney general costs in water program operations.

$77,000 in 2010 and $181,000 in 2011 are reductions in the appropriations for the clean water partnership program.

$71,000 in 2010 and $205,000 in 2011 are reductions in the appropriations for the county feedlot grant program.

$100,000 in 2010 is a reduction in the appropriation for stormwater compliance grants.

$50,000 in 2011 is a reduction in the appropriation for grants to the Red River Watershed Management Board for the river watch program.

$50,000 in 2011 is appropriated from the environmental fund for grants to the Red River Watershed Management Board for the river watch program.

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

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

Subd. 6. Transfers In

(a) The amounts appropriated from the agency indirect costs account in the special revenue fund are reduced by $328,000 in fiscal year 2010 and $462,000 in fiscal year 2011, and those amounts must be transferred to the general fund by June 30, 2011. The appropriation reductions are onetime.

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(b) The commissioner of management and budget shall transfer $8,000,000 in fiscal year 2011 from the closed landfill investment fund in Minnesota Statutes, section 115B.421, to the general fund. The commissioner shall transfer $4,000,000 on July 1, 2013, and $4,000,000 on July 1, 2014, from the general fund to the closed landfill investment fund. For the July 1, 2014, transfer to the closed landfill investment fund, the commissioner shall determine the total amount of interest and other earnings that would have accrued to the fund if the transfers to the general fund under this paragraph had not been made and add this amount to the transfer. The amounts necessary for these transfers are appropriated from the general fund in the fiscal years specified for the transfers.

Sec. 4. NATURAL RESOURCES

Subdivision 1. Total Appropriation (2,008,000) (4,439,000)

The appropriation additions or reductions for each purpose are shown in the following subdivisions.

In order to leverage nonstate money, or to address high priority needs identified by the commissioner, the commissioner may shift appropriations in Laws 2009, chapter 37, article 1, section 4, available in one fiscal year to the other fiscal year within each program. Any adjustments made under this paragraph do not affect the agency base for the programs affected.

Subd. 2. Lands and Minerals (168,000) (388,000)

$101,000 in 2010 and $237,000 in 2011 are reductions in the appropriations for land and mineral resources management operations.

$61,000 in 2010 and $91,000 in 2011 are reductions in the appropriations for the iron ore cooperative research program.

$6,000 in 2010 and $6,000 in 2011 are reductions in the appropriations for minerals cooperative research.

$54,000 in 2011 is a reduction in the appropriations for issuing mining permits in Laws 2009, chapter 88, article 12, section 22.

Subd. 3. Water Resource Management (422,000) (644,000)

$268,000 in 2010 and $626,000 in 2011 are reductions in the appropriations for water resource management operations.

$7,000 in 2011 is a reduction in the appropriation for grants to the Mississippi Headwaters Board.

$154,000 in 2010 and $11,000 in 2011 are reductions in the appropriation for the Red River flood damage reduction grants.

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Subd. 4. Forest Management (670,000) (1,404,000)

$587,000 in 2010 and $1,295,000 in 2011 are reductions in the appropriations for forest management. Of this amount, $88,000 in 2010 and $132,000 in 2011 are onetime.

$72,000 in 2010 and $72,000 in 2011 are reductions in the appropriations for prevention costs of emergency firefighting.

$11,000 in 2010 and $17,000 in 2011 are reductions in the appropriations for the FORIST system.

$20,000 in 2011 is a reduction in the appropriation for grants to the Forest Resources Council.

Subd. 5. Parks and Trails Management (420,000) (980,000)

$420,000 in 2010 and $980,000 in 2011 are reductions in the appropriations for parks and trails management.

Subd. 6. Fish and Wildlife Management -0- (225,000)

$225,000 in 2011 is a reduction in the appropriation for wildlife health programs.

Subd. 7. Ecological Services (131,000) (307,000)

$103,000 in 2010 and $241,000 in 2011 are reductions in the appropriations for ecological services operations.

$28,000 in 2010 and $66,000 in 2011 are reductions in the appropriations for the prevention of the spread of invasive species.

Subd. 8. Enforcement (135,000) (345,000)

The commissioner shall reduce overtime before laying off enforcement staff.

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

Subd. 10. Transfers In

(a) By June 30, 2010, the commissioner of management and budget shall transfer any remaining balance, estimated to be $98,000, from the stream protection and improvement fund under Minnesota Statutes, section 103G.705, to the general fund. Beginning in fiscal year 2011, all repayment of loans made and administrative fees assessed under Minnesota Statutes, section 103G.705, estimated to be $195,000 in 2011, must be transferred to the general fund.

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(b) The balance of surcharges on criminal and traffic offenders, estimated to be $900,000, and credited to the game and fish fund under Minnesota Statutes, section 357.021, subdivision 7, and collected before June 30, 2010, must be transferred to the general fund.

(c) The appropriation in Laws 2007, First Special Session chapter 2, article 1, section 5, for cost-share flood programs in southeastern Minnesota is reduced by $335,000 and that amount is canceled to the general fund.

(d) Before June 30, 2011, the commissioner of management and budget shall transfer $1,000,000 from the fleet management account in the special revenue fund established under Minnesota Statutes, section 84.0856, to the general fund.

Sec. 5. BOARD OF WATER AND SOIL RESOURCES

Subdivision 1. Total Appropriation $(591,000) $(1,363,000)

The appropriation additions or reductions for each purpose are specified in the following subdivisions.

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

Subd. 2. Appropriation Reductions

$71,000 in 2010 and $167,000 in 2011 are reductions in the appropriations for administration.

$20,000 in 2010 and $46,000 in 2011 are reductions in the appropriation for Wetland Conservation Act oversight.

$160,000 in 2010 and $374,000 in 2011 are reductions in the appropriations for natural resources block grants to local governments.

$135,000 in 2010 and $315,000 in 2011 are reductions in the appropriations for general purpose grants to soil and water conservation districts.

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$38,000 in 2010 and $90,000 in 2011 are reductions in the appropriations for cost-share grants to soil and water conservation districts.

$137,000 in 2010 and $187,000 in 2011 are reductions in cost-share grants to establish and maintain riparian vegetative buffers.

$19,000 in 2010 and $45,000 in 2011 are reductions in the appropriations for feedlot water quality grants.

$11,000 in 2010 and $17,000 in 2011 are reductions in the appropriation for assistance to local drainage officials.

$100,000 in 2011 is a reduction in the appropriation for cost-share grants for drainage records modernization.

$6,000 in 2011 is a reduction in the appropriation for the grant to the Red River Basin Commission.

$6,000 in 2011 is a reduction in the appropriation for the grant to the Minnesota River Basin Joint Powers Board.

$10,000 in 2011 is a reduction in the appropriation for a grant to Area II, Minnesota River Basin Projects for flood plain management.

Subd. 3. Carryforward Cancellations

(a) Clean Water Legacy

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

(b) Cost-Share Vegetations Buffer Grants

The appropriation in Laws 2007, chapter 57, article 1, section 5, for grants for establishing and maintaining vegetation buffers is reduced by $100,000 and that amount is canceled to the general fund.

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

(d) SE Flood Transfer Funds

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

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(e) Cost-Share South East Flood

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

Subd. 4. Returned Grants

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

Sec. 6. METROPOLITAN COUNCIL $(86,000) $(154,000)

$86,000 in 2010 and $154,000 in 2011 are reductions in the appropriations for metropolitan parks and trails.

The commissioner of management and budget, in consultation with the council, may shift these reductions from the first fiscal year to the second fiscal year if sufficient funds are not available for reduction in the first fiscal year. Any adjustments made under this paragraph do not affect the appropriation base.

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

Sec. 8. REPEALER.

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

ARTICLE 4

ENERGY

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts in this section summarize direct appropriations, or reductions in appropriations, by fund, made in this article.

2010 2011 Total

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

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

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

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Sec. 2. APPROPRIATIONS.

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

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 3. DEPARTMENT OF COMMERCE

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

Appropriations by Fund

2010 2011

General 110,000 (322,000)

Petroleum Tank

Release Cleanup (25,000) (32,000)

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

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

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

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

Subd. 5. Petroleum Tank Release Cleanup Board (25,000) (32,000)

These reductions are from the petroleum tank release cleanup fund.

Sec. 4. DEPARTMENT OF COMMERCE-OFFICE OF ENERGY SECURITY $(100,000) $-0-

The appropriation additions or reductions for each purpose are shown in the following paragraph.

$100,000 the first year is a reduction in the appropriation for E85 cost-share grants.

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Sec. 5. CANCELLATIONS; DEPARTMENT OF COMMERCE

Subdivision 1. E-85 Grants

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

Subd. 2. Renewable Hydrogen Initiative Grants

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

Subd. 3. Transfers In

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

Sec. 6. TRANSFERS IN

(a) For the purposes of this section, "commissioner" means the commissioner of management and budget.

(b) In the first year, the commissioner shall transfer $3,024,000 from the special revenue fund to the general fund. In the second year, the commissioner shall transfer $1,993,000 from the special revenue fund to the general fund. The transfers must be from the following appropriation reductions and accounts within the special revenue fund:

(1) $246,000 the first year and $270,000 the second year are from the telecommunications access Minnesota fund established in Minnesota Statutes, section 237.52;

(2) $238,000 the first year is from the assessments collected under Minnesota Statutes, section 216C.052, for the reliability administrator;

(3) $200,000 the first year and $200,000 the second year are from the Department of Commerce license technology surcharge account established in Minnesota Statutes, section 45.24;

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(4) $381,000 the first year and $260,000 the second year are from the energy and conservation account established in Minnesota Statutes, section 216B.241. Of this amount, (i) $43,000 the first year and $17,000 the second year are from the assessments for technical assistance in Minnesota Statutes, section 216B.241, subdivision 1d; (ii) $316,000 the first year and $213,000 the second year are from the assessments for applied research and development grants in Minnesota Statutes, section 216B.241, subdivision 1e; and (iii) $22,000 the first year and $30,000 the second year are from the assessment for facilities energy efficiency in Minnesota Statutes, section 216B.241, subdivision 1f;

(5) $64,000 the first year and $48,000 the second year are from the insurance fraud prevention account established in Minnesota Statutes, section 45.0135;

(6) $1,133,000 the first year and $1,111,000 the second year are from the automobile theft prevention account established in Minnesota Statutes, section 168A.40;

(7) $549,000 the first year and $5,000 the second year are from the real estate education, research and recovery fund established in Minnesota Statutes, section 82.43;

(8) $100,000 the first year is from the consumer education account established in Minnesota Statutes, section 58.10;

(9) $11,000 the first year and $15,000 the second year are from the fees and assessments collected under Minnesota Statutes, section 216E.18;

(10) the remaining balance in the first year, estimated to be $19,000, is from the routing of certain pipelines under Minnesota Statutes, section 216G.02;

(11) $4,000 the first year and $9,000 the second year are from the joint exercise of powers agreements with the Department of Health for regulating health maintenance organizations;

(12) $75,000 the first year and $75,000 the second year are from the liquefied petroleum gas account established in Minnesota Statutes, section 239.785;

(13) $4,000 in the first year is from the petroleum inspection fee established in Minnesota Statutes, section 239.101, for renewable energy equipment grants.

Sec. 7. TRANSFER; ASSIGNED RISK PLAN

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

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Sec. 8. Minnesota Statutes 2009 Supplement, section 45.30, subdivision 6, is amended to read:

Subd. 6. Course approval. (a) Courses must be approved by the commissioner in advance. A course that is required by federal criteria or a reciprocity agreement to receive a substantive review will be approved or disapproved on the basis of its compliance with the provisions of laws and rules relating to the appropriate industry. At the commissioner's discretion, a course that is not required by federal criteria or a reciprocity agreement to receive a substantive review may be approved based on a qualified provider's certification on a form specified by the commissioner that the course complies with the provisions of this chapter and the laws and rules relating to the appropriate industry. For the purposes of this section, a "qualified provider" is one of the following: (1) a degree-granting institution of higher learning located within this state; (2) a private school licensed by the Minnesota Office of Higher Education; or (3) when conducting courses for its members, a bona fide trade association that staffs and maintains in this state a physical location that contains course and student records and that has done so for not less than three years. The commissioner may review any approved course and may cancel its approval with regard to all future offerings. The commissioner must make the final determination as to accreditation and assignment of credit hours for courses. Courses must be at least one hour in length, except courses for real estate appraisers must be at least two hours in length.

Individuals wishing to receive credit for continuing education courses that have not been previously approved may submit the course information for approval. Courses must be in compliance with the laws and rules governing the types of courses that will and will not be approved.

Approval will not include time spent on meals or other unrelated activities.

(b) Courses must be submitted at least 30 days before the initial proposed course offering.

(c) Approval must be granted for a subsequent offering of identical continuing education courses without requiring a new application. The commissioner must deny future offerings of courses if they are found not to be in compliance with the laws relating to course approval.

(d) When either the content of an approved course or its method of instruction changes, the course is no longer approved for license education credit. A new application must be submitted for the changed course if the education provider intends to offer it for license education credit.

Sec. 9. Minnesota Statutes 2008, section 80A.46, is amended to read:

80A.46 SECTION 202; EXEMPT TRANSACTIONS.

The following transactions are exempt from the requirements of sections 80A.49 through 80A.54, except 80A.50, paragraph (a), clause (3), and 80A.71:

(1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers in Minnesota during any period of 12 consecutive months, whether effected by or through a broker-dealer or not;

(2) a nonissuer transaction by or through a broker-dealer registered, or exempt from registration under this chapter, and a resale transaction by a sponsor of a unit investment trust registered under the Investment Company Act of 1940, in a security of a class that has been outstanding in the hands of the public for at least 90 days, if, at the date of the transaction:

(A) the issuer of the security is engaged in business, the issuer is not in the organizational stage or in bankruptcy or receivership, and the issuer is not a blank check, blind pool, or shell company that has no specific business plan or purpose or has indicated that its primary business plan is to engage in a merger or combination of the business with, or an acquisition of, an unidentified person;

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(B) the security is sold at a price reasonably related to its current market price;

(C) the security does not constitute the whole or part of an unsold allotment to, or a subscription or participation by, the broker-dealer as an underwriter of the security or a redistribution;

(D) a nationally recognized securities manual or its electronic equivalent designated by rule adopted or order issued under this chapter or a record filed with the Securities and Exchange Commission that is publicly available contains:

(i) a description of the business and operations of the issuer;

(ii) the names of the issuer's executive officers and the names of the issuer's directors, if any;

(iii) an audited balance sheet of the issuer as of a date within 18 months before the date of the transaction or, in the case of a reorganization or merger when the parties to the reorganization or merger each had an audited balance sheet, a pro forma balance sheet for the combined organization; and

(iv) an audited income statement for each of the issuer's two immediately previous fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case of a reorganization or merger when each party to the reorganization or merger had audited income statements, a pro forma income statement; and

(E) any one of the following requirements is met:

(i) the issuer of the security has a class of equity securities listed on a national securities exchange registered under Section 6 of the Securities Exchange Act of 1934 or designated for trading on the National Association of Securities Dealers Automated Quotation System;

(ii) the issuer of the security is a unit investment trust registered under the Investment Company Act of 1940;

(iii) the issuer of the security, including its predecessors, has been engaged in continuous business for at least three years; or

(iv) the issuer of the security has total assets of at least $2,000,000 based on an audited balance sheet as of a date within 18 months before the date of the transaction or, in the case of a reorganization or merger when the parties to the reorganization or merger each had such an audited balance sheet, a pro forma balance sheet for the combined organization;

(3) a nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter in a security of a foreign issuer that is a margin security defined in regulations or rules adopted by the Board of Governors of the Federal Reserve System;

(4) a nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter in an outstanding security if the guarantor of the security files reports with the Securities and Exchange Commission under the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Sections 78m or 78o(d));

(5) a nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter in a security that:

(A) is rated at the time of the transaction by a nationally recognized statistical rating organization in one of its four highest rating categories; or

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(B) has a fixed maturity or a fixed interest or dividend, if:

(i) a default has not occurred during the current fiscal year or within the three previous fiscal years or during the existence of the issuer and any predecessor if less than three fiscal years, in the payment of principal, interest, or dividends on the security; and

(ii) the issuer is engaged in business, is not in the organizational stage or in bankruptcy or receivership, and is not and has not been within the previous 12 months a blank check, blind pool, or shell company that has no specific business plan or purpose or has indicated that its primary business plan is to engage in a merger or combination of the business with, or an acquisition of, an unidentified person;

(6) a nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter effecting an unsolicited order or offer to purchase;

(7) a nonissuer transaction executed by a bona fide pledgee without the purpose of evading this chapter;

(8) a nonissuer transaction by a federal covered investment adviser with investments under management in excess of $100,000,000 acting in the exercise of discretionary authority in a signed record for the account of others;

(9) a transaction in a security, whether or not the security or transaction is otherwise exempt, in exchange for one or more bona fide outstanding securities, claims, or property interests, or partly in such exchange and partly for cash, if the terms and conditions of the issuance and exchange or the delivery and exchange and the fairness of the terms and conditions have been approved by the administrator after a hearing;

(10) a transaction between the issuer or other person on whose behalf the offering is made and an underwriter, or among underwriters;

(11) a transaction in a note, bond, debenture, or other evidence of indebtedness secured by a mortgage or other security agreement if:

(A) the note, bond, debenture, or other evidence of indebtedness is offered and sold with the mortgage or other security agreement as a unit;

(B) a general solicitation or general advertisement of the transaction is not made; and

(C) a commission or other remuneration is not paid or given, directly or indirectly, to a person not registered under this chapter as a broker-dealer or as an agent;

(12) a transaction by an executor, administrator of an estate, sheriff, marshal, receiver, trustee in bankruptcy, guardian, or conservator;

(13) a sale or offer to sell to:

(A) an institutional investor;

(B) an accredited investor;

(D) any other person exempted by rule adopted or order issued under this chapter;

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(14) a sale or an offer to sell securities by an issuer, if the transaction is part of a single issue in which:

(A) not more than 35 purchasers are present in this state during any 12 consecutive months, other than those designated in paragraph (13);

(B) a general solicitation or general advertising is not made in connection with the offer to sell or sale of the securities;

(C) a commission or other remuneration is not paid or given, directly or indirectly, to a person other than a broker-dealer registered under this chapter or an agent registered under this chapter for soliciting a prospective purchaser in this state; and

(D) the issuer reasonably believes that all the purchasers in this state, other than those designated in paragraph (13), are purchasing for investment.

Any issuer selling to purchasers in this state in reliance on this clause (14) exemption must provide to the administrator notice of the transaction by filing a statement of issuer form as adopted by rule. Notice must be filed at least ten days in advance of any sale or such shorter period as permitted by the administrator. However, an issuer who makes sales to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not required to provide this notice;

(15) a transaction under an offer to existing security holders of the issuer, including persons that at the date of the transaction are holders of convertible securities, options, or warrants, if a commission or other remuneration, other than a standby commission, is not paid or given, directly or indirectly, for soliciting a security holder in this state. The person making the offer and effecting the transaction must provide to the administrator notice of the transaction by filing a written description of the transaction. Notice must be filed at least ten days in advance of any transaction or such shorter period as permitted by the administrator;

(16) an offer to sell, but not a sale, of a security not exempt from registration under the Securities Act of 1933 if:

(A) a registration or offering statement or similar record as required under the Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and

(B) a stop order of which the offeror is aware has not been issued against the offeror by the administrator or the Securities and Exchange Commission, and an audit, inspection, or proceeding that is public and that may culminate in a stop order is not known by the offeror to be pending;

(17) an offer to sell, but not a sale, of a security exempt from registration under the Securities Act of 1933 if:

(A) a registration statement has been filed under this chapter, but is not effective;

(B) a solicitation of interest is provided in a record to offerees in compliance with a rule adopted by the administrator under this chapter; and

(C) a stop order of which the offeror is aware has not been issued by the administrator under this chapter and an audit, inspection, or proceeding that may culminate in a stop order is not known by the offeror to be pending;

(18) a transaction involving the distribution of the securities of an issuer to the security holders of another person in connection with a merger, consolidation, exchange of securities, sale of assets, or other reorganization to which the issuer, or its parent or subsidiary and the other person, or its parent or subsidiary, are parties. The person

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distributing the issuer's securities must provide to the administrator notice of the transaction by filing a written description of the transaction along with a consent to service of process complying with section 80A.88. Notice must be filed at least ten days in advance of any transaction or such shorter period as permitted by the administrator;

(19) a rescission offer, sale, or purchase under section 80A.77;

(20) an offer or sale of a security to a person not a resident of this state and not present in this state if the offer or sale does not constitute a violation of the laws of the state or foreign jurisdiction in which the offeree or purchaser is present and is not part of an unlawful plan or scheme to evade this chapter;

(21) employees' stock purchase, savings, option, profit-sharing, pension, or similar employees' benefit plan, including any securities, plan interests, and guarantees issued under a compensatory benefit plan or compensation contract, contained in a record, established by the issuer, its parents, its majority-owned subsidiaries, or the majority-owned subsidiaries of the issuer's parent for the participation of their employees including offers or sales of such securities to:

(A) directors; general partners; trustees, if the issuer is a business trust; officers; consultants; and advisors;

(B) family members who acquire such securities from those persons through gifts or domestic relations orders;

(C) former employees, directors, general partners, trustees, officers, consultants, and advisors if those individuals were employed by or providing services to the issuer when the securities were offered; and

(D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's subsidiaries or parents, or who derive more than 50 percent of their annual income from those organizations.

A person establishing an employee benefit plan under the exemption in this clause (21) must provide to the administrator notice of the transaction by filing a written description of the transaction along with a consent to service of process complying with section 80A.88. Notice must be filed at least ten days in advance of any transaction or such shorter period as permitted by the administrator;

(22) a transaction involving:

(A) a stock dividend or equivalent equity distribution, whether the corporation or other business organization distributing the dividend or equivalent equity distribution is the issuer or not, if nothing of value is given by stockholders or other equity holders for the dividend or equivalent equity distribution other than the surrender of a right to a cash or property dividend if each stockholder or other equity holder may elect to take the dividend or equivalent equity distribution in cash, property, or stock;

(B) an act incident to a judicially approved reorganization in which a security is issued in exchange for one or more outstanding securities, claims, or property interests, or partly in such exchange and partly for cash; or

(C) the solicitation of tenders of securities by an offeror in a tender offer in compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162);

(23) a nonissuer transaction in an outstanding security by or through a broker-dealer registered or exempt from registration under this chapter, if the issuer is a reporting issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order issued under this chapter; has been subject to continuous reporting requirements in the foreign jurisdiction for not less than 180 days before the transaction; and the security is listed on the foreign jurisdiction's securities exchange that has been designated by this paragraph or by rule adopted or order issued under this chapter, or is a security of the same issuer that is of senior or substantially equal rank to the listed security or is a

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warrant or right to purchase or subscribe to any of the foregoing. For purposes of this paragraph, Canada, together with its provinces and territories, is a designated foreign jurisdiction and The Toronto Stock Exchange, Inc., is a designated securities exchange. After an administrative hearing in compliance with chapter 14, the administrator, by rule adopted or order issued under this chapter, may revoke the designation of a securities exchange under this paragraph, if the administrator finds that revocation is necessary or appropriate in the public interest and for the protection of investors;

(24) any transaction effected by or through a Canadian broker-dealer exempted from broker-dealer registration pursuant to section 80A.56(b)(3); or

(25)(A) the offer and sale by a cooperative organized under chapter 308A, or under the laws of another state, of its securities when the securities are offered and sold only to its members, or when the purchase of the securities is necessary or incidental to establishing membership in the cooperative, or when the securities are issued as patronage dividends. This paragraph applies to a cooperative organized under chapter 308A, or under the laws of another state, only if the cooperative has filed with the administrator a consent to service of process under section 80A.88 and has, not less than ten days before the issuance or delivery, furnished the administrator with a written general description of the transaction and any other information that the administrator requires by rule or otherwise;

(B) the offer and sale by a cooperative organized under chapter 308B of its securities when the securities are offered and sold to its existing members or when the purchase of the securities is necessary or incidental to establishing patron membership in the cooperative, or when such securities are issued as patronage dividends. The administrator has the power to define "patron membership" for purposes of this paragraph. This paragraph applies to securities, other than securities issued as patronage dividends, only when:

(i) the issuer, before the completion of the sale of the securities, provides each offeree or purchaser disclosure materials that, to the extent material to an understanding of the issuer, its business, and the securities being offered, substantially meet the disclosure conditions and limitations found in rule 502(b) of Regulation D promulgated by the Securities and Exchange Commission, Code of Federal Regulations, title 17, section 230.502; and

(ii) within 15 days after the completion of the first sale in each offering completed in reliance upon this exemption, the cooperative has filed with the administrator a consent to service of process under section 80A.88 (or has previously filed such a consent), and has furnished the administrator with a written general description of the transaction and any other information that the administrator requires by rule or otherwise; and

(C) a cooperative may, at or about the same time as offers or sales are being completed in reliance upon the exemptions from registration found in this subpart and as part of a common plan of financing, offer or sell its securities in reliance upon any other exemption from registration available under this chapter. The offer or sale of securities in reliance upon the exemptions found in this subpart will not be considered or deemed a part of or be integrated with any offer or sale of securities conducted by the cooperative in reliance upon any other exemption from registration available under this chapter, nor will offers or sales of securities by the cooperative in reliance upon any other exemption from registration available under this chapter be considered or deemed a part of or be integrated with any offer or sale conducted by the cooperative in reliance upon this paragraph.

Sec. 10. ASSESSMENT.

(a) The commissioner of commerce may levy a pro rata assessment on institutions licensed under Minnesota Statutes, chapter 58, to recover the costs to the Department of Commerce for administering the licensing and registration requirements of Minnesota Statutes, section 58A.10, if enacted in the 2010 legislative session.

(b) The commissioner shall levy the assessments and notify each institution of the amount of the assessment being levied by September 30, 2010. The institution shall pay the assessment to the department no later than November 30, 2010. If an institution fails to pay its assessment by this date, its license may be suspended by the commissioner until it is paid in full.

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ARTICLE 5

AGRICULTURE

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made in this article.

2010 2011 Total

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

Sec. 2. APPROPRIATIONS.

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

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 3. AGRICULTURE

Subdivision 1. Total Appropriation $(2,593,000) $(3,133,000)

The appropriation additions or reductions for each purpose are shown in the following subdivisions.

Subd. 2. Protection Services (130,000) (586,000)

$60,000 in 2010 and $200,000 in 2011 are reductions in the appropriations for dairy and food inspection.

$25,000 in 2010 and $50,000 in 2011 are reductions in the appropriations for the food inspection laboratory.

Subd. 3. Agricultural Marketing and Development (124,000) (8,000)

$3,000 in 2010 is a reduction for grants to farmers for demonstration projects involving sustainable agriculture, as authorized in Minnesota Statutes, section 17.116.

Subd. 4. Bioenergy and Value-Added Agriculture (2,220,000) (2,220,000)

$2,220,000 in 2010 and $2,220,000 in 2011 are reductions in appropriations for ethanol producer payments under Minnesota Statutes, section 41A.09. These reductions are onetime.

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Subd. 5. Administration and Financial Assistance (119,000) (319,000)

$20,000 in 2010 and $52,000 in 2011 are reductions from the appropriation for the dairy development and profitability enhancement and dairy business planning grant programs established under Laws 1997, chapter 216, section 7, subdivision 2, and Laws 2001, First Special Session chapter 2, section 9, subdivision 2.

$1,000 in 2011 is a reduction from the appropriation for a grant to the Minnesota Livestock Breeders Association.

$15,000 in 2011 is a reduction from the appropriation for a grant to the Minnesota Agricultural Education and Leadership Council.

$3,000 in 2011 is a reduction from the appropriation for the Northern Crops Institute.

$4,000 in 2010 and $4,000 in 2011 are reductions from the appropriation for grants to the Minnesota Turf Seed Council for basic and applied research on the improved production of forage and turf seed related to new and improved varieties.

$3,000 in 2010 and $3,000 in 2011 are reductions from the appropriation for grants to the Minnesota Turf Seed Council for basic and applied agronomic research on native plants including plant breeding, nutrient management, pest management, disease management yield, and viability.

$60,000 in 2010 is a reduction from the appropriation for the agricultural growth, research, and innovation program.

$6,000 in 2011 is a reduction from the appropriation for transfer to the Board of Trustees of the Minnesota State Colleges and Universities for mental health counseling support to farm families and business operators through farm business management programs at Central Lakes College and Ridgewater College.

$1,000 in 2011 is a reduction from the appropriation for a grant to the Minnesota Horticultural Society.

$4,000 in 2010 is a reduction from the appropriation for transfer to the University of Minnesota Extension Service for farm-to-school grants to school districts in Minneapolis, Moorhead, White Earth, and Willmar.

$28,000 in 2010 and $234,000 in 2011 and $684,000 in 2012 and $684,000 in 2013 are reductions due to efficiencies and other cost savings realized by various methods including, but not limited to, renegotiating leases and other contracts and resource reorganization or consolidation within the department or in conjunction with other public entities. The commissioner may allocate these reductions to programs.

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Notwithstanding Minnesota Statutes, section 16A.28, the appropriation encumbered on or before June 30, 2009, as grants for NextGen bioenergy projects in Laws 2007, chapter 45, article 1, section 3, subdivision 4, is available until June 30, 2011.

Subd. 6. Transfers In

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

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

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

ARTICLE 6

VETERANS AFFAIRS

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made in this article.

2010 2011 Total

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

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to, or if shown in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 3, to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this article mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 3. VETERANS AFFAIRS $-0- $200,000

$100,000 in fiscal year 2011 is for a grant to the Minnesota Assistance Council for Veterans to provide assistance throughout Minnesota to veterans and their families who are homeless or in

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danger of homelessness, including housing, utility, employment, and legal assistance, according to guidelines established by the commissioner. In order to avoid duplication of services, the commissioner must ensure that this assistance will be coordinated with all other available programs for veterans. This is a onetime appropriation.

$100,000 in the second year is for compensation for honor guards at the funerals of veterans in accordance with the program established in Minnesota Statutes, section 197.231. This is a onetime appropriation.

$200,000 in fiscal year 2010 and $200,000 in fiscal year 2011 are from the Support our Troops account established in Minnesota Statutes, section 190.19, for an increase in the CORE grant program.

Sec. 4. VETERANS HOMES

Of the appropriation in Laws 2009, chapter 94, article 3, section 2, subdivision 3, or from funds carried forward from fiscal year 2009:

(1) $1,000,000 in fiscal year 2011 is for operational expenses related to the 21-bed addition at the Fergus Falls Veterans Home; and

(2) $113,000 in fiscal year 2011 is for start-up expenses related to the opening of an adult daycare facility at the Minneapolis Veterans Home.

Sec. 5. REPORT TO THE LEGISLATURE

By January 15, 2011, the commissioner shall report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over veterans affairs policy and finance regarding any unexpended appropriations, revenues, or other actual or projected carryover money provided directly or indirectly through any provision in this article.

Sec. 6. Minnesota Statutes 2009 Supplement, section 190.19, subdivision 2a, is amended to read:

Subd. 2a. Uses; veterans. Money appropriated to the Department of Veterans Affairs from the Minnesota "Support Our Troops" account may be used for:

(1) grants to veterans service organizations;

(2) outreach to underserved veterans; ~~and~~

(3) providing services and programs for veterans and their families; and

(4) transfers to the vehicle services account for Gold Star license plates under section 168.1253.

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

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

Subd. 3. Veterans Homes 43,673,000 43,916,000

Veterans Homes Special Revenue Account. The general fund appropriations made to the department may be transferred to a veterans homes special revenue account in the special revenue fund in the same manner as other receipts are deposited according to Minnesota Statutes, section 198.34, and are appropriated to the department for the operation of veterans homes facilities and programs.

Repair and Betterment. Of this appropriation, $1,000,000 in fiscal year 2010 and $500,000 in fiscal year 2011 are to be used for repair, maintenance, rehabilitation, and betterment activities at facilities statewide.

Hastings Veterans Home. $220,000 each year is for increases in the mental health program at the Hastings Veterans Home.

~~Food.~~ ~~$92,000 in fiscal year 2010 and $189,000 in fiscal year 2011 are for increases in food costs at the Minnesota veterans homes.~~

~~Pharmaceuticals.~~ ~~$287,000 in fiscal year 2010 and $617,000 in fiscal year 2011 are for increases in pharmaceutical costs.~~

~~Fuel and Utilities.~~ ~~$277,000 in fiscal year 2010 and $593,000 in fiscal year 2011 are for increases in fuel and utility costs at the Minnesota veterans homes.~~

Medicare Part D. $141,000 in fiscal year 2010 and $141,000 in fiscal year 2011 are for implementation of Minnesota Statutes, section 198.003, subdivision 7.

ARTICLE 7

ECONOMIC DEVELOPMENT

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made in this article.

2010 2011 Total

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

Sec. 2. APPROPRIATIONS.

The sums shown in the columns under "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1, or other law to the specified agencies. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for

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each purpose. The figures "2010" and "2011" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Appropriations for the fiscal year ending June 30, 2010, are effective the day following final enactment. Reductions may be taken in either fiscal year.

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 3. EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1. Total Appropriation $(1,643,000) $(1,582,000)

The appropriation reductions for each purpose are specified in the following subdivisions.

Subd. 2. Business and Community Development (193,000) (582,000)

(a) $15,000 in 2010 and $25,000 in 2011 are from the appropriation for a grant to BioBusiness Alliance of Minnesota.

(b) $15,000 in 2011 is from the appropriation for a grant to the Minnesota Inventors Congress.

(c) $6,000 in 2010 and $10,000 in 2011 are from the appropriation for the Office of Science and Technology. This is a onetime reduction.

(d) $15,000 in 2010 and $25,000 in 2011 are from the appropriation for a grant to Enterprise Minnesota, Inc. This is a onetime reduction.

Subd. 3. Workforce Development (384,000) (910,000)

(a) $250,000 in 2010 and $250,000 in 2011 are from the appropriation for the Minnesota job skills partnership program under Minnesota Statutes, sections 116L.01 to 116L.17.

(b) $119,000 in 2011 is from the appropriation for State Services for the Blind activities.

(d) $22,000 in 2010 and $375,000 in 2011 are from the appropriation for extended employment services under Minnesota Statutes, section 268A.15. Notwithstanding Minnesota Rules, parts 3300.2030 to 3300.2055, the commissioner may adjust contracts with eligible extended employment providers in order to achieve required reductions through June 30, 2011. The general fund base for extended employment services is $5,405,000 in fiscal year 2012 and $5,405,000 in fiscal year 2013.

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(e) $41,000 in 2010 and $47,000 in 2011 are from the appropriation for grants to programs that provide employment support services to persons with mental illness under Minnesota Statutes, sections 268A.13 and 268A.14.

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

Subd. 5. Carryforward (1,000,000) -0-

The carryforward reduction is for the job skills partnership program.

Subd. 6. Transfers and Cancellations

(a) $2,500,000 in 2010 and $2,500,000 in 2011 are transferred from the petroleum tank release cleanup fund under Minnesota Statutes, section 115C.08, to the general fund.

(b) $80,000 in 2010 is transferred from the unemployment insurance state administration account in the special revenue fund under Minnesota Statutes, section 268.196, subdivision 1, to the general fund.

(c) $160,000 in 2010 is transferred from the capital access program account in the special revenue fund under Minnesota Statutes, section 116J.876, subdivision 4, to the general fund.

(d) The remaining balance from the Laws 2007, chapter 135, article 1, section 3, appropriation for a grant to Le Sueur County is canceled.

Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY; TRANSFERS $-0- $-0-

By June 30, 2010, the commissioner of management and budget shall transfer $1,425,000 from the assigned risk safety account in the worker's compensation fund to the general fund.

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

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

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

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

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

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

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Sec. 11. HOUSING FINANCE AGENCY

Subdivision 1. Total Appropriation $(2,061,000) $(2,156,000)

The amounts that may be spent or must be reduced for each purpose are specified in the following subdivisions.

Subd. 2. Affordable Rental Investment Fund (2,061,000) (1,156,000)

These reductions are from the appropriation for the affordable rental investment fund program under Minnesota Statutes, section 462A.21, subdivision 8b.

In fiscal year 2010, the Housing Finance Agency shall transfer $2,061,000 from the affordable rental investment fund program in the housing development fund, to the general fund.

The base appropriation for the affordable rental investment fund program for fiscal years 2012 and 2013 is $7,546,000 for each year.

Subd. 3. Housing Rehabilitation -0- (1,000,000)

This reduction is from the appropriation for the housing rehabilitation program under Minnesota Statutes, section 462A.05, subdivision 14, for rental housing developments.

The base appropriation for the housing rehabilitation program for fiscal years 2012 and 2013 is $3,287,000 for each year.

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

Sec. 13. EXPLORE MINNESOTA TOURISM $(253,000) $(302,000)

(a) $251,000 in 2010 and $300,000 in 2011 are reductions to Explore Minnesota Tourism. Of the reduction in 2010, $13,000 is a reduction in the carryforward from fiscal year 2009.

(b) $2,000 in 2010 and $2,000 in 2011 are reductions to the incentive grants program.

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

(a) Education and Outreach

$120,000 in 2010 and $280,000 in 2011 are reductions to education and outreach.

(b) Preservation and Access

$90,000 in 2010 and $210,000 in 2011 are reductions to the preservation and access program.

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

(a) Operations and Services

$20,000 in 2010 and $21,000 in 2011 are reductions to operations and services.

(b) Grants Program

$165,000 in 2010 and $182,000 in 2011 are reductions to the grants program.

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

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

Sec. 17. PUBLIC BROADCASTING $(66,000) $(83,000)

(a) $38,000 in 2010 and $48,000 in 2011 are reductions to matching grants for public television.

(b) $7,000 in 2010 and $10,000 in 2011 are reductions to public television equipment grants.

(d) $9,000 in 2010 and $9,000 in 2011 are reductions to the community service grants to public educational radio stations.

(e) $3,000 in 2010 and $3,000 in 2011 are reductions to the equipment grants to public educational radio stations.

(f) $8,000 in 2010 and $12,000 in 2011 are reductions to the equipment grants to Minnesota Public Radio, Inc.

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

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

Appropriations by Fund

General 7,941,000 7,941,000

Remediation 700,000 700,000

Workforce Development 339,000 339,000

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(a) $700,000 the first year and $700,000 the second year are from the remediation fund for contaminated site cleanup and development grants under Minnesota Statutes, section 116J.554. This appropriation is available until expended.

(b) $200,000 each year is from the general fund for a grant to WomenVenture for women's business development programs and for programs that encourage and assist women to enter nontraditional careers in the trades; manual and technical occupations; science, technology, engineering, and mathematics-related occupations; and green jobs. This appropriation may be matched dollar for dollar with any resources available from the federal government for these purposes with priority given to initiatives that have a goal of increasing by at least ten percent the number of women in occupations where women currently comprise less than 25 percent of the workforce. The appropriation is available until expended.

(c) $105,000 each year is from the general fund and $50,000 each year is from the workforce development fund for a grant to the Metropolitan Economic Development Association for continuing minority business development programs in the metropolitan area. This appropriation must be used for the sole purpose of providing free or reduced fee business consulting services to minority entrepreneurs and contractors.

(d)(1) $500,000 each year is from the general fund for a grant to BioBusiness Alliance of Minnesota for bioscience business development programs to promote and position the state as a global leader in bioscience business activities. This appropriation is added to the department's base. These funds may be used to create, recruit, retain, and expand biobusiness activity in Minnesota; implement the destination 2025 statewide plan; update a statewide assessment of the bioscience industry and the competitive position of Minnesota-based bioscience businesses relative to other states and other nations; and develop and implement business and scenario-planning models to create, recruit, retain, and expand biobusiness activity in Minnesota.

(2) The BioBusiness Alliance must report each year by February 15 to the committees of the house of representatives and the senate having jurisdiction over bioscience industry activity in Minnesota on the use of funds; the number of bioscience businesses and jobs created, recruited, retained, or expanded in the state since the last reporting period; the competitive position of the biobusiness industry; and utilization rates and results of the business and scenario-planning models and outcomes resulting from utilization of the business and scenario-planning models.

(e)(1) Of the money available in the Minnesota Investment Fund, Minnesota Statutes, section 116J.8731, to the commissioner of the Department of Employment and Economic Development, up to

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$3,000,000 is appropriated in fiscal year 2010 for a loan to an aircraft manufacturing and assembly company, associated with the aerospace industry, for equipment utilized to establish an aircraft completion center at the Minneapolis-St. Paul International Airport. The finishing center must use the state's vocational training programs designed specifically for aircraft maintenance training, and to the extent possible, work to recruit employees from these programs. The center must create at least 200 new manufacturing jobs within 24 months of receiving the loan, and create not less than 500 new manufacturing jobs over a five-year period in Minnesota.

(2) This loan is not subject to loan limitations under Minnesota Statutes, section 116J.8731, subdivision 5. Any match requirements under Minnesota Statutes, section 116J.8731, subdivision 3, may be made from current resources. This is a onetime appropriation and is effective the day following final enactment.

(f) $65,000 each year is from the general fund for a grant to the Minnesota Inventors Congress, of which at least $6,500 must be used for youth inventors.

(g) $200,000 the first year and $200,000 the second year are for the Office of Science and Technology. This is a onetime appropriation.

(h) $500,000 the first year and $500,000 the second year are for a grant to Enterprise Minnesota, Inc., for the small business growth acceleration program under Minnesota Statutes, section 116O.115. This is a onetime appropriation and is available until expended.

(i)(1) $100,000 each year is from the workforce development fund for a grant under Minnesota Statutes, section 116J.421, to the Rural Policy and Development Center at St. Peter, Minnesota. The grant shall be used for research and policy analysis on emerging economic and social issues in rural Minnesota, to serve as a policy resource center for rural Minnesota communities, to encourage collaboration across higher education institutions, to provide interdisciplinary team approaches to research and problem-solving in rural communities, and to administer overall operations of the center.

(2) The grant shall be provided upon the condition that each state-appropriated dollar be matched with a nonstate dollar. Acceptable matching funds are nonstate contributions that the center has received and have not been used to match previous state grants. Any funds not spent the first year are available the second year.

(j) Notwithstanding Minnesota Statutes, section 268.18, subdivision 2, $414,000 of funds collected for unemployment insurance administration under this subdivision is appropriated as

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follows: $250,000 to Lake County for ice storm damage; $64,000 is for the city of Green Isle for reimbursement of fire relief efforts and other expenses incurred as a result of the fire in the city of Green Isle; and $100,000 is to develop the construction mitigation pilot program to make grants for up to five projects statewide available to local government units to mitigate the impacts of transportation construction on local small business. These are onetime appropriations and are available until expended.

(k) Up to $10,000,000 is appropriated from the Minnesota minerals 21st century fund to the commissioner of Iron Range resources and rehabilitation to make ~~a grant~~ grants or forgivable ~~loan~~ loans to ~~a manufacturer~~ manufacturers of windmill blades, other renewable energy manufacturing, or biomass products at ~~a facility~~ facilities to be located within the taconite tax relief area defined in Minnesota Statutes, section 273.134. No match is required for the renewable energy manufacturing or biomass projects.

(l) $1,000,000 is appropriated from the Minnesota minerals 21st century fund to the Board of Trustees of the Minnesota State Colleges and Universities for a grant to the Northeast Higher Education District for planning, design, and construction of classrooms and housing facilities for upper division students in the engineering program.

(m)(1) $189,000 each year is appropriated from the workforce development fund for grants of $63,000 to eligible organizations each year to assist in the development of entrepreneurs and small businesses. Each state grant dollar must be matched with $1 of nonstate funds. Any balance in the first year does not cancel but is available in the second year.

(2) Three grants must be awarded to continue or to develop a program. One grant must be awarded to the Riverbend Center for Entrepreneurial Facilitation in Blue Earth County, and two to other organizations serving Faribault and Martin Counties. Grant recipients must report to the commissioner by February 1 of each year that the organization receives a grant with the number of customers served; the number of businesses started, stabilized, or expanded; the number of jobs created and retained; and business success rates. The commissioner must report to the house of representatives and senate committees with jurisdiction over economic development finance on the effectiveness of these programs for assisting in the development of entrepreneurs and small businesses.

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

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Sec. 19. ADJUSTMENT.

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

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

Sec. 20. APPROPRIATIONS MADE ONLY ONCE.

If the appropriations made in this article are enacted more than once in the 2010 regular session, these appropriations must be given effect only once.

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

ARTICLE 8

MISCELLANEOUS ECONOMIC DEVELOPMENT

Section 1. Minnesota Statutes 2009 Supplement, section 115C.08, subdivision 4, is amended to read:

Subd. 4. Expenditures. (a) Money in the fund may only be spent:

(1) to administer the petroleum tank release cleanup program established in this chapter;

(2) for agency administrative costs under sections 116.46 to 116.50, sections 115C.03 to 115C.06, and costs of corrective action taken by the agency under section 115C.03, including investigations;

(3) for costs of recovering expenses of corrective actions under section 115C.04;

(4) for training, certification, and rulemaking under sections 116.46 to 116.50;

(5) for agency administrative costs of enforcing rules governing the construction, installation, operation, and closure of aboveground and underground petroleum storage tanks;

(6) for reimbursement of the environmental response, compensation, and compliance account under subdivision 5 and section 115B.26, subdivision 4;

(7) for administrative and staff costs as set by the board to administer the petroleum tank release program established in this chapter;

(8) for corrective action performance audits under section 115C.093;

(9) for contamination cleanup grants, as provided in paragraph (c); and

(10) to assess and remove abandoned underground storage tanks under section 115C.094 and, if a release is discovered, to pay for the specific consultant and contractor services costs necessary to complete the tank removal project, including, but not limited to, excavation soil sampling, groundwater sampling, soil disposal, and completion of an excavation report.

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(b) Except as provided in paragraph (c), money in the fund is appropriated to the board to make reimbursements or payments under this section.

(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund to the commissioner of employment and economic development for contamination cleanup grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter, $6,200,000 is annually appropriated from the fund to the commissioner of employment and economic development for contamination cleanup grants under section 116J.554. Of this amount, the commissioner may spend up to $225,000 annually for administration of the contamination cleanup grant program. The appropriation does not cancel and is available until expended. The appropriation shall not be withdrawn from the fund nor the fund balance reduced until the funds are requested by the commissioner of employment and economic development. The commissioner shall schedule requests for withdrawals from the fund to minimize the necessity to impose the fee authorized by subdivision 2. Unless otherwise provided, the appropriation in this paragraph may be used for:

(1) project costs at a qualifying site if a portion of the cleanup costs are attributable to petroleum contamination or new and used tar and tar-like substances, including but not limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, fractions, or residues from the processing of petroleum crude or petroleum products as defined in section 296A.01; and

(2) the costs of performing contamination investigation if there is a reasonable basis to suspect the contamination is attributable to petroleum or new and used tar and tar-like substances, including but not limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, fractions, or residues from the processing of petroleum crude or petroleum products as defined in section 296A.01.

Sec. 2. Minnesota Statutes 2008, section 116L.17, subdivision 2, is amended to read:

Subd. 2. Grants. The board shall make grants to workforce service areas or other eligible organizations to provide services to dislocated workers as follows:

(a) The board shall allocate funds available for the purposes of this section in its discretion to respond to substantial layoffs and plant closings.

(b) The board shall regularly allocate funds to provide services to individual dislocated workers or small groups. The initial allocation for this purpose must be 50 percent of the deposits and transfers into the workforce development fund, less any collection costs paid out of the fund and any amounts appropriated by the legislature from the workforce development fund for programs other than the state dislocated worker program.

(c) Following the initial allocation, the board may consider additional allocations to provide services to individual dislocated workers. The board's decision to allocate additional funds shall be based on relevant economic indicators including: the number of substantial layoffs to date, notices of substantial layoffs for the remainder of the fiscal year, evidence of declining industries, the number of permanently separated individuals applying for unemployment benefits by workforce service area, and the number of individuals exhausting unemployment benefits by workforce service area. The board must also consider expenditures of allocations to workforce service areas under paragraph (b) made during the first two quarters of the fiscal year and federal resources that have been or are likely to be allocated to Minnesota for the purposes of serving dislocated workers affected by substantial layoffs or plant closings; except that this sentence does not apply in fiscal year 2011.

(d) The board may, in its discretion, allocate funds carried forward from previous years under subdivision 9 for large, small, or individual layoffs.

EFFECTIVE DATE. This section is effective July 1, 2010.

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Sec. 3. Minnesota Statutes 2009 Supplement, section 154.002, is amended to read:

154.002 OFFICERS; COMPENSATION; FEES; EXPENSES.

The Board of Barber Examiners shall annually elect a chair and secretary. It shall adopt and use a common seal for the authentication of its orders and records. The board shall appoint an executive secretary ~~who~~ or enter into an interagency agreement to procure the services of an executive secretary. The executive secretary shall not be a member of the board and ~~who~~ shall be in the unclassified civil service. The position of executive secretary may be a part-time position.

The executive secretary shall keep a record of all proceedings of the board. The expenses of administering this chapter shall be paid from the appropriations made to the Board of Barber Examiners.

Each member of the board shall take the oath provided by law for public officers.

A majority of the board, in meeting assembled, may perform and exercise all the duties and powers devolving upon the board.

The members of the board shall receive compensation for each day spent on board activities, but not to exceed 20 days in any calendar month nor 100 days in any calendar year.

The board shall have authority to employ such inspectors, clerks, deputies, and other assistants as it may deem necessary to carry out the provisions of this chapter.

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

Sec. 4. Minnesota Statutes 2009 Supplement, section 154.003, is amended to read:

154.003 FEES.

(a) The fees collected, as required in this chapter, chapter 214, and the rules of the board, shall be paid to the ~~executive secretary of the~~ board. The ~~executive secretary~~ board shall deposit the fees in the general fund in the state treasury.

(b) The board shall charge the following fees:

(1) examination and certificate, registered barber, ~~$65~~ $85;

(2) examination and certificate, apprentice, ~~$60~~ $80;

(3) examination, instructor, ~~$160~~ $180;

(4) certificate, instructor, ~~$45~~ $65;

(5) temporary teacher or apprentice permit, ~~$60~~ $80;

(6) renewal of license, registered barber, ~~$60~~ $80;

(7) renewal of license, apprentice, ~~$50~~ $70;

(8) renewal of license, instructor, ~~$60~~ $80;

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(9) renewal of temporary teacher permit, ~~$45~~ $65;

(10) student permit, ~~$25~~ $45;

(11) initial shop registration, ~~$65~~ $85;

(12) initial school registration, ~~$1,010~~ $1,030;

(13) renewal shop registration, ~~$65~~ $85;

(14) renewal school registration, ~~$260~~ $280;

(15) restoration of registered barber license, ~~$75~~ $95;

(16) restoration of apprentice license, ~~$70~~ $90;

(17) restoration of shop registration, ~~$85~~ $105;

(18) change of ownership or location, ~~$35~~ $55;

(19) duplicate license, ~~$20~~ $40; and

(20) home study course, ~~$75; and~~ $95.

~~(21) registration of hair braiders, $20 per year.~~

Sec. 5. Minnesota Statutes 2009 Supplement, section 155A.23, is amended by adding a subdivision to read:

Subd. 5a. Individual license. "Individual license" means a license described in section 155A.25, subdivision 1, paragraph (a), clauses (1) and (2).

Sec. 6. Minnesota Statutes 2009 Supplement, section 155A.24, subdivision 2, is amended to read:

Subd. 2. Hiring and assignment of employees. The board has the authority to hire qualified personnel in the classified service to assist in administering the law, including those for the testing and licensing of applicants and the continuing inspections required. All staff must receive periodic training to improve and maintain customer service skills.

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

Sec. 7. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding a subdivision to read:

Subd. 3. Feedback. The board must provide access on its Web site for customers to provide feedback on interaction with the board and board staff. The information posted to the Web site by customers must be readily accessible to the public. The board must also record each complaint it receives, the board's response, and the time elapsed in responding to and resolving each complaint.

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

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Sec. 8. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding a subdivision to read:

Subd. 4. Report. The board must report by January 15 each year to the standing committees of the house of representatives and the senate having jurisdiction over the board on its customer service training and its complaint resolution activities.

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

Sec. 9. Minnesota Statutes 2009 Supplement, section 155A.25, is amended to read:

155A.25 COSMETOLOGY FEES; LICENSE EXPIRATION DATE.

Subdivision 1. Schedule. The fee schedule for licensees is as follows for licenses issued prior to July 1, 2010, and after June 30, 2013:

(a) Three-year license fees:

(1) cosmetologist, manicurist, esthetician, $90 for each initial license, and $60 for each renewal;

(2) instructor, manager, $120 for each initial license, and $90 for each renewal;

(3) salon, $130 for each initial license, and $100 for each renewal; and

(4) school, $1,500.

(b) Penalties:

(1) reinspection fee, variable;

(2) manager and owner with lapsed practitioner, $150 each;

(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and instructor license, $45; and

(4) expired salon or school license, $50.

(1) certificate of identification, $20;

(2) school original application, $150;

(3) name change, $20;

(4) letter of license verification, $30;

(5) duplicate license, $20;

(6) processing fee, $10; ~~and~~

(7) special event permit, $75 per year; and

(8) registration of hair braiders, $20 per year.

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(d) All fees established in this subdivision must be paid to the executive secretary of the board. The executive secretary of the board shall deposit the fees in the general fund in the state treasury.

Subd. 1a. Schedule. The fee schedule for licensees is as follows for licenses issued after June 30, 2010, and prior to July 1, 2013:

(a) Three-year license fees:

(1) cosmetologist, manicurist, or esthetician:

(i) $90 for each initial license and a $40 nonrefundable initial license application fee, for a total of $130; and

(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for a total of $75;

(2) instructor or manager:

(i) $120 for each initial license and a $40 nonrefundable initial license application fee, for a total of $160; and

(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a total of $105;

(3) salon:

(i) $130 for each initial license and a $100 nonrefundable initial license application fee, for a total of $230; and

(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a total of $150; and

(4) school:

(i) $1,500 for each initial license and a $1,000 nonrefundable initial license application fee, for a total of $2,500; and

(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee, for a total of $2,000.

(b) Penalties:

(1) reinspection fee, variable;

(2) manager and owner with lapsed practitioner, $150 each;

(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and instructor license, $45; and

(4) expired salon or school license, $50.

(1) certificate of identification, $20;

(2) name change, $20;

(3) letter of license verification, $30;

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(4) duplicate license, $20;

(5) processing fee, $10;

(6) special event permit, $75 per year; and

(7) registration of hair braiders, $20 per year.

Subd. 1b. Fees disposition; appropriation. (a) All fees established in subdivisions 1 and 1a must be paid to the executive secretary of the board.

(b) The executive secretary of the board shall deposit all fees in the general fund in the state treasury.

Subd. 2. Refunds. Refunds shall be given in the following situations: overpayment; death or permanent disability before the effective date of a license; or an individual's ineligibility for licensure. Applicants determined ineligible to receive a license will be refunded the license fee minus any processing fee and minus any application fee this section requires.

Subd. 3. Other licenses. A licensee who applies for licensing in a second category shall pay the full license fee and application fee for the second category of license.

Subd. 4. License expiration date. The board shall, in a manner determined by the board and without the need for rulemaking under chapter 14, phase in changes to initial and renewal license expiration dates so that by January 1, 2014:

(1) individual licenses expire on the last day of the licensee's birth month of the year due; and

(2) salon licenses expire on the last day of the month of initial licensure of the year due.

Subd. 5. Board must approve or deny application; timeline. Within 15 working days of receiving a complete application and the required fees for an initial or renewal individual or salon license, the board must (1) either grant or deny the application, (2) issue the license or notify the applicant of the denial, or (3) issue a temporary license to an applicant for whom no record exists regarding: (i) a complaint filed with the board against the applicant; or (ii) a negative action by the board against the applicant.

Sec. 10. Minnesota Statutes 2008, section 326B.148, subdivision 1, is amended to read:

Subdivision 1. Computation. To defray the costs of administering sections 326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in connection with the construction of or addition or alteration to buildings and equipment or appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge receipts to award grants for code research and development and education.

If the fee for the permit issued is fixed in amount the surcharge is equivalent to one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June 30, 2011, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5, whichever amount is greater. For all other permits, the surcharge is as follows:

(1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition, or alteration;

(2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths mill (.0004) of the value between $1,000,000 and $2,000,000;

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(3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths mill (.0003) of the value between $2,000,000 and $3,000,000;

(4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth mill (.0002) of the value between $3,000,000 and $4,000,000;

(5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth mill (.0001) of the value between $4,000,000 and $5,000,000; and

(6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth mill (.00005) of the value that exceeds $5,000,000.

Sec. 11. RULEMAKING.

Subdivision 1. Conforming changes. The Board of Cosmetologist Examiners must amend Minnesota Rules, parts 2105.0200 and 2105.0330, to conform to the license expiration date requirements of Minnesota Statutes, section 155A.25, subdivision 4, by specifying that individual or salon licenses expire on the last day of an individual's birth month of the year due, or on the last day of the month of initial licensure of the year due.

Subd. 2. Good cause exemption. The Board of Cosmetologist Examiners must use the good cause exemption under Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt the rules required by this section. Minnesota Statutes, section 14.386, does not apply except as provided in Minnesota Statutes, section 14.388.

Sec. 12. Minnesota Statutes 2008, section 116U.26, is amended to read:

116U.26 FILM PRODUCTION JOBS PROGRAM.

(a) The film production jobs program is created. The program shall be operated by the Minnesota Film and TV Board with administrative oversight and control by the director of Explore Minnesota Tourism. The program shall make payment to producers of feature films, national television or Internet programs, documentaries, music videos, and commercials that directly create new film jobs in Minnesota. To be eligible for a payment, a producer must submit documentation to the Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota that are directly attributable to the production in Minnesota of a film product.

The Minnesota Film and TV Board shall make recommendations to the director of Explore Minnesota Tourism about program payment, but the director has the authority to make the final determination on payments. The director's determination must be based on proper documentation of eligible production costs submitted for payments. No more than five percent of the funds appropriated for the program in any year may be expended for administration.

(b) For the purposes of this section:

(1) "production costs" means the cost of the following:

(i) a story and scenario to be used for a film;

(ii) salaries of talent, management, and labor, including payments to personal services corporations for the services of a performing artist;

(iii) set construction and operations, wardrobe, accessories, and related services;

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(iv) photography, sound synchronization, lighting, and related services;

(v) editing and related services;

(vi) rental of facilities and equipment; or

(vii) other direct costs of producing the film in accordance with generally accepted entertainment industry practice; and

(2) "film" means a feature film, television or Internet show, documentary, music video, or television commercial, whether on film, video, or digital media. Film does not include news, current events, public programming, or a program that includes weather or market reports; a talk show; a production with respect to a questionnaire or contest; a sports event or sports activity; a gala presentation or awards show; a finished production that solicits funds; or a production for which the production company is required under United States Code, title 18, section 2257, to maintain records with respect to a performer portrayed in a single-media or multimedia program.

(c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board may make reimbursements of: (1) up to 20 percent of film production costs for films that locate production outside the metropolitan area, as defined in section 473.121, subdivision 2, or that incur production costs in excess of $5,000,000 in ~~Minnesota~~ the metropolitan area within a 12-month period; or (2) up to 15 percent of film production costs for films that incur production costs of $5,000,000 or less in the metropolitan area within a 12-month period.

ARTICLE 9

MINERALS

Section 1. Minnesota Statutes 2009 Supplement, section 298.294, is amended to read:

298.294 INVESTMENT OF FUND.

(a) The trust fund established by section 298.292 shall be invested pursuant to law by the State Board of Investment and the net interest, dividends, and other earnings arising from the investments shall be transferred, except as provided in paragraph (b), on the first day of each month to the trust and shall be included and become part of the trust fund. The amounts transferred, including the interest, dividends, and other earnings earned prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year 1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the commissioner of Iron Range resources and rehabilitation for deposit in a separate account for expenditure for the purposes set forth in section 298.292. Amounts appropriated pursuant to this section shall not cancel but shall remain available unless expended.

(b) For fiscal years 2010 and 2011 only, ~~$1,000,000~~ $1,500,000 of the net interest, dividends, and other earnings under paragraph (a) shall be transferred to a special account. Funds in the special account are available for loans or grants to businesses, with priority given to businesses with 25 or fewer employees. Funds may be used for wage subsidies for up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, short-term operating expenses and purchase of equipment and materials by businesses under financial duress, that will create additional jobs in the taconite assistance area under section 273.1341. Expenditures from the special account must be approved by at least seven Iron Range Resources and Rehabilitation Board members.

(c) To qualify for a grant or loan, a business must be currently operating and have been operating for one year immediately prior to its application for a loan or grant, and its corporate headquarters must be located in the taconite assistance area.

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

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Sec. 2. Laws 2009, chapter 78, article 7, section 2, is amended to read:

Sec. 2. IRON RANGE RESOURCES AND REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.

(a) Notwithstanding any law to the contrary, the commissioner of Iron Range resources and rehabilitation, in consultation with the commissioner of management and budget, ~~may~~ shall offer a targeted early separation incentive program for employees of the commissioner who have attained the age of 60 years or who have received credit for at least 30 years of allowable service under the provisions of Minnesota Statutes, chapter 352.

(b) The early separation incentive program may include one or more of the following:

(1) employer-paid postseparation health, medical, and dental insurance until age 65; and

(2) cash incentives that may, but are not required to be, used to purchase additional years of service credit through the Minnesota State Retirement System, to the extent that the purchases are otherwise authorized by law.

(c) The commissioner of Iron Range resources and rehabilitation shall establish eligibility requirements for employees to receive an incentive.

(d) The commissioner of Iron Range resources and rehabilitation, consistent with the established program provisions under paragraph (b), and with the eligibility requirements under paragraph (c), may designate specific programs or employees as eligible to be offered the incentive program.

(e) Acceptance of the offered incentive must be voluntary on the part of the employee and must be in writing. The incentive may only be offered at the sole discretion of the commissioner of Iron Range resources and rehabilitation.

(f) The cost of the incentive is payable solely by funds made available to the commissioner of Iron Range resources and rehabilitation by law, but only on prior approval of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.

(g) This section and section 3 are repealed ~~June 30, 2011~~ December 31, 2012.

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

Sec. 3. 2010 DISTRIBUTIONS ONLY.

For distributions in 2010 only, a special fund is established to receive 28.757 cents per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6:

(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives for at least two dentists to establish dental practices in high-need areas of the taconite tax relief area;

(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal heat at the Olcott Park Greenhouse/Virginia Commons project;

(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs at the Miners Memorial;

(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of Highway 142/Grant and Park Avenues;

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(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades and capital improvements to the public arena in Coleraine;

(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and pumphouse modifications;

(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial claims for water damage due to water and flood-related damage caused by the Canisteo Pit;

(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child care center;

(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;

(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library project;

(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water and sewer services for Lakewood Housing;

(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the Children's Museum;

(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil corrections. This amount must be matched by local sources;

(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;

(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;

(16) 0.159 cent per ton must be paid to Aitkin County for a trail;

(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad crossing;

(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping of the community center parking lot;

(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;

(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements, milling, and overlay for Summit Street between Alaska Avenue and Highway 135;

(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main replacements and improvements in the Northeast Lower Alley area;

(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz Road culvert;

(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon Street and associated infrastructure;

(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements at the Park Ridge development;

(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and site preparation for its renewable and sustainable energy park;

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(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer improvements;

(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding for the Summit Addition;

(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility improvements;

(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer infrastructure improvements;

(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer improvements;

(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge improvements and industrial park land purchase;

(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer improvements;

(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer improvements;

(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer improvements;

(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer improvements;

(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure improvements;

(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure improvements;

(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;

(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project infrastructure improvements;

(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety improvements at the athletic facility;

(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street improvements;

(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure related to a housing development;

(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;

(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit for a signage kiosk;

(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines and adjacent development near County State-Aid Highway 24; and

(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall infrastructure around the athletic complex.

EFFECTIVE DATE. This section is effective for the 2010 distribution, all of which must be made in the August 2010 payment.

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ARTICLE 10

TRANSPORTATION

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, or reductions in appropriations, by fund, made in this article.

2010 2011 Total

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

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

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

Sec. 2. APPROPRIATIONS.

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

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 3. DEPARTMENT OF TRANSPORTATION

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

Appropriations by Fund

2010 2011

General -0- (1,735,000)

Trunk Highway -0- 117,000,000

The amounts that may be spent or must be reduced for each purpose are specified in the following subdivisions.

Subd. 2. Multimodal Systems

(a) Transit -0- (1,685,000)

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This reduction is from the appropriation from the general fund for transit assistance in Laws 2009, chapter 36, article 1, section 3, subdivision 2, paragraph (b).

The base appropriation from the general fund for fiscal years 2012 and 2013 is $16,301,000.

(b) Freight -0- (50,000)

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

Subd. 3. State Roads

(a) State Road Construction -0- 112,000,000

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

(b) Federal Emergency Relief Account -0- 5,000,000

This appropriation is for deposit in the trunk highway emergency relief account, as defined in Minnesota Statutes, section 161.04, subdivision 5, for the purposes of that account. This is a onetime appropriation.

Sec. 4. METROPOLITAN COUNCIL $-0- $(12,915,000)

This reduction is from the appropriation from the general fund for bus system operations in Laws 2009, chapter 36, article 1, section 4, subdivision 2.

The base appropriation from the general fund for fiscal years 2012 and 2013 is $61,302,000 for each year.

Sec. 5. Minnesota Statutes 2008, section 161.04, is amended by adding a subdivision to read:

Subd. 5. Trunk highway emergency relief account. (a) The trunk highway emergency relief account is created in the trunk highway fund. Money in the account is appropriated to the commissioner to be used to fund relief activities related to an emergency, as defined in section 161.32, subdivision 3.

(b) Reimbursements by the Federal Highway Administration for emergency relief payments made from the trunk highway emergency relief account must be credited to the account. Interest accrued on the account must be credited to the account. Notwithstanding section 16A.28, money in the account is available until spent. If the balance of the account at the end of a fiscal year is greater than $10,000,000, the amount above $10,000,000 must be canceled to the trunk highway fund.

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(c) By September 1, 2012, and in every subsequent even-numbered year by September 1, the commissioner shall submit a report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over transportation policy and finance. The report must include the balance, as well as details of payments made from and deposits made to the trunk highway emergency relief account since the last report.

Sec. 6. REPEALER.

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

ARTICLE 11

PUBLIC SAFETY

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made in this article.

2010 2011 Total

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

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

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