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KEY: stricken = removed, old language.underscored = new language to be added

sc7672-1

1.1A bill for an act
1.2relating to the financing of state government; making supplemental appropriations
1.3and reductions in appropriations for higher education, environment and
1.4natural resources, energy, agriculture, veterans affairs, economic development,
1.5transportation, public safety, judiciary, state government, property tax aids
1.6and credits, and the political contribution refund program; abolishing certain
1.7state agency positions; ratifying commissioner of management and budget's
1.8unallotment actions commencing in July 2009; modifying certain statutory
1.9provisions and laws; providing for certain programs; fixing and limiting fees;
1.10authorizing rulemaking; requiring reports; appropriating money;amending
1.11Minnesota Statutes 2008, sections 16B.04, subdivision 2; 16B.48, subdivision
1.122; 18G.07; 80A.46; 97A.061, by adding a subdivision; 103G.705, subdivision
1.132; 115A.15, subdivision 6; 136A.127, by adding subdivisions; 136A.1701,
1.14subdivisions 4, 7; 136A.69, subdivisions 1, 3, 4; 141.255; 161.04, by adding
1.15a subdivision; 169A.52, subdivision 6; 169A.53; 169A.60, subdivision 10;
1.16270A.03, subdivision 7; 272.02, subdivision 42; 273.1384, by adding a
1.17subdivision; 275.71, subdivision 5; 289A.50, subdivision 1; 290.01, subdivision
1.186; 290A.03, subdivisions 11, 13; 477A.013, subdivision 9; 477A.03, subdivisions
1.192a, 2b; 477A.12, by adding a subdivision; 477A.14, by adding a subdivision;
1.20Minnesota Statutes 2009 Supplement, sections 16A.82; 45.30, subdivision
1.216; 58.06, subdivision 2; 136A.121, subdivision 9; 136A.127, subdivision 9;
1.22270C.145; 275.70, subdivision 5; 289A.08, subdivision 16; 290C.07; 357.021,
1.23subdivision 7; Laws 2007, chapter 45, article 1, section 3, subdivisions 4, as
1.24amended, 5, as amended; Laws 2008, chapter 366, article 3, sections 3; 4; Laws
1.252009, chapter 88, article 12, section 21; Laws 2009, chapter 94, article 1, section
1.263, subdivision 5; Laws 2009, chapter 95, article 1, sections 3, subdivisions 6, 12;
1.274, subdivision 4, as amended; 5, subdivision 2; Laws 2009, chapter 101, article 1,
1.28section 31; Laws 2009, chapter 172, article 2, section 5; proposing coding for
1.29new law in Minnesota Statutes, chapters 97A; 357; 477A; proposing coding for
1.30new law as Minnesota Statutes, chapter 58A; repealing Minnesota Statutes 2008,
1.31sections 10A.322, subdivision 4; 13.4967, subdivision 2; 13.721, subdivision
1.324; 136A.1701, subdivision 5; 136A.69, subdivision 2; 141.255, subdivision 3;
1.33221.0355, subdivisions 1, 2, 3, 4, 5, 6, 7, 7a, 8, 9, 10, 11, 12, 13, 14, 16, 17,
1.3418; 290.06, subdivision 23; 477A.03, subdivision 5; Minnesota Statutes 2009
1.35Supplement, sections 58.126; 135A.61; 136A.121, subdivision 9b; Laws 2009,
1.36chapter 88, article 12, section 21.
1.37BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1ARTICLE 1
2.2HIGHER EDUCATION

2.3
Section 1. SUMMARY OF APPROPRIATIONS.
2.4    Subdivision 1. Summary Total. The amounts shown in this section summarize
2.5direct appropriations, by fund, made in this article.
2.6
2010
2011
Total
2.7
General
$
(619,000)
$
(52,664,000)
$
(53,283,000)
2.8
Health Care Access
-0-
-0-
-0-
2.9
Federal
-0-
-0-
-0-
2.10
2.11
State Government Special
Revenue
-0-
-0-
-0-
2.12
Total
$
(619,000)
$
(52,664,000)
$
(53,283,000)
2.13    Subd. 2. Summary by Agency - All Funds. The amounts shown in this subdivision
2.14summarize direct appropriations, by agency, made in this article.
2.15
2010
2011
Total
2.16
2.17
Minnesota Office of Higher
Education
$
(619,000)
$
(6,077,000)
$
(6,696,000)
2.18
2.19
2.20
Board of Trustees of the
Minnesota State Colleges and
Universities
-0-
(10,467,000)
(10,467,000)
2.21
2.22
Board of Regents of the
University of Minnesota
-0-
(36,120,000)
(36,120,000)
2.23
Total
$
(619,000)
$
(52,664,000)
$
(53,283,000)

2.24
Sec. 2. APPROPRIATIONS.
2.25The sums shown in the columns marked "Appropriations" are added to or, if shown
2.26in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to
2.27the agencies and for the purposes specified in this article. The appropriations are from the
2.28general fund, or another named fund, and are available for the fiscal years indicated for
2.29each purpose. The figures "2010" and "2011" used in this article mean that the addition
2.30to or subtraction from the appropriation listed under them is available for the fiscal year
2.31ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
2.32reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
2.33day following final enactment.
2.34
APPROPRIATIONS
2.35
Available for the Year
2.36
Ending June 30
2.37
2010
2011

3.1
Sec. 3. OFFICE OF HIGHER EDUCATION
3.2
Subdivision 1.Total Appropriation
$
(619,000)
$
(6,077,000)
3.3The amounts that may be spent for each
3.4purpose are specified in the following
3.5subdivisions.
3.6
Subd. 2.State Grants
(233,000)
(2,063,000)
3.7
Subd. 3.Child Care Grants
-0-
(500,000)
3.8
Subd. 4.State Work-Study
-0-
(2,500,000)
3.9
Subd. 5.Indian Scholarships
-0-
(120,000)
3.10
3.11
Subd. 6.Intervention for College Attendance
Program Grants
(22,000)
(43,000)
3.12
Subd. 7.Midwest Higher Education Compact
(3,000)
(3,000)
3.13
3.14
Subd. 8.Technical and Community College
Emergency Grants
-0-
(150,000)
3.15
Subd. 9.United Family Medicine Residency
(13,000)
(28,000)
3.16
Subd. 10.Interstate Tuition Reciprocity
(165,000)
(165,000)
3.17
Subd. 11.Minnesota College Savings Plan
(22,000)
(50,000)
3.18
Subd. 12.MnLink Gateway and Minitex
(95,000)
(362,000)
3.19
Subd. 13.Other Programs
(6,000)
(12,000)
3.20The reduction in the student and parent
3.21information program is $6,000 in fiscal year
3.222010 and $3,000 in fiscal year 2011. The
3.23reduction in get ready program funds is
3.24$6,000 in fiscal year 2011. The reduction in
3.25funds for the Minnesota Minority Education
3.26Partnership is $3,000 in fiscal year 2011.
3.27
Subd. 14.Agency Administration
(60,000)
(81,000)

3.28
3.29
3.30
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
3.31
Subdivision 1.Total Appropriation
$
-0-
$
(10,467,000)
4.1The amounts that must be reduced or
4.2added for each purpose are specified in the
4.3following subdivisions.
4.4
4.5
Subd. 2.Central Office and Shared Services
Unit
-0-
(742,000)
4.6
Subd. 3.Operations and Maintenance
-0-
(9,642,000)
4.7
Subd. 4.Learning Network of Minnesota
-0-
(82,000)

4.8
4.9
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
4.10
Subdivision 1.Total Appropriation
$
-0-
$
(36,120,000)
4.11The amounts that must be reduced or
4.12added for each purpose are specified in the
4.13following subdivisions.
4.14
Subd. 2.Operations and Maintenance
-0-
(32,223,000)
4.15
Subd. 3.Special Appropriations
4.16
(a) Agriculture and Extension Service
-0-
(2,787,000)
4.17
(b) Health Sciences
-0-
(281,000)
4.18$18,000 in fiscal year 2011 is a reduction to
4.19the appropriation to support up to 12 resident
4.20physicians in the St. Cloud Hospital family
4.21practice residency program.
4.22
(c) Institute of Technology
-0-
(74,000)
4.23
(d) System Special
-0-
(328,000)
4.24
4.25
(e) University of Minnesota and Mayo
Foundation Partnership
-0-
(427,000)

4.26    Sec. 6. Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9, is
4.27amended to read:
4.28    Subd. 9. Awards. An undergraduate student who meets the office's requirements
4.29is eligible to apply for and receive a grant in any year of undergraduate study unless the
4.30student has obtained a baccalaureate degree or previously has been enrolled full time or
4.31the equivalent for nine eight semesters or the equivalent, excluding courses taken from a
4.32Minnesota school or postsecondary institution which is not participating in the state grant
5.1program and from which a student transferred no credit. A student who withdraws from
5.2enrollment for active military service, or for a major illness, while under the care of a
5.3medical professional, that substantially limits the student's ability to complete the term is
5.4entitled to an additional semester or the equivalent of grant eligibility. A student enrolled
5.5in a two-year program at a four-year institution is only eligible for the tuition and fee
5.6maximums established by law for two-year institutions.

5.7    Sec. 7. Minnesota Statutes 2009 Supplement, section 136A.127, subdivision 9, is
5.8amended to read:
5.9    Subd. 9. Scholarship awards. The amount of the scholarship is equal to the
5.10maximum assigned student responsibility for a four-year program, as defined in section
5.11136A.121, subdivision 5 , minus the assigned family responsibility as defined in section
5.12136A.101, subdivision 5a , multiplied by 0.50. The minimum scholarship is $1,200 per
5.13academic year based on the institution's academic calendar and the student's continued
5.14eligibility and available appropriations. Awards are subject to student priority under
5.15subdivision 9d. The scholarship may be used to pay for qualifying expenses at eligible
5.16institutions.

5.17    Sec. 8. Minnesota Statutes 2008, section 136A.127, is amended by adding a
5.18subdivision to read:
5.19    Subd. 9c. Insufficient appropriation. If the amount appropriated is determined by
5.20the office to be insufficient to make full awards to applicants under subdivision 9, awards
5.21may be reduced by one or more of the following:
5.22(1) a percentage reduction in the maximum award;
5.23(2) a dollar amount reduction in the minimum award; or
5.24(3) adding a surcharge to the applicant's assigned family responsibility, as defined in
5.25section 136A.101, subdivision 5a.

5.26    Sec. 9. Minnesota Statutes 2008, section 136A.127, is amended by adding a
5.27subdivision to read:
5.28    Subd. 9d. Student priority. Achieve scholarship awards must be made to students
5.29with complete applications received as of August 31 of each respective fiscal year.

5.30    Sec. 10. Minnesota Statutes 2008, section 136A.1701, subdivision 4, is amended to
5.31read:
6.1    Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such
6.2terms and conditions as the office may prescribe. The Under the SELF IV program, the
6.3principal amount of a loan to an undergraduate student for a single academic year shall
6.4not exceed $6,000 for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007.
6.5Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not
6.6exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed
6.7$7,500 effective July 1, 2006 $7,500 per grade level. The aggregate principal amount of
6.8all loans made under this section to an undergraduate student shall not exceed $34,500
6.9through June 30, 2007, and $37,500 after June 30, 2007. The principal amount of a loan
6.10to a graduate student for a single academic year shall not exceed $9,000. The aggregate
6.11principal amount of all loans made under this section to a student as an undergraduate
6.12and graduate student shall not exceed $52,500 through June 30, 2007, and $55,500
6.13after June 30, 2007. The amount of the loan may not exceed the cost of attendance less
6.14all other financial aid, including PLUS loans or other similar parent loans borrowed on
6.15the student's behalf. The cumulative SELF loan debt must not exceed the borrowing
6.16maximums in paragraph (b).
6.17(b) The cumulative undergraduate borrowing maximums for SELF IV loans are:
6.18(1) effective July 1, 2006, through June 30, 2007:
6.19(i) grade level 1, $6,000;
6.20(ii) grade level 2, $12,000;
6.21(iii) grade level 3, $19,500;
6.22(iv) grade level 4, $27,000; and
6.23(v) grade level 5, $34,500; and
6.24(2) effective July 1, 2007:
6.25(i) grade level 1, $7,500;
6.26(ii) (2) grade level 2, $15,000;
6.27(iii) (3) grade level 3, $22,500;
6.28(iv) (4) grade level 4, $30,000; and
6.29(v) (5) grade level 5, $37,500.
6.30(c) The principal amount of a SELF V or subsequent phase loan to students enrolled
6.31in a bachelor's degree program, postbaccalaureate, or graduate program must not exceed
6.32$10,000 per grade level. For all other eligible students, the principal amount of the loan
6.33must not exceed $7,500 per grade level. The aggregate principal amount of all loans
6.34made under this section to a student as an undergraduate and graduate student must not
6.35exceed $70,000. The amount of the loan must not exceed the cost of attendance less
6.36all other financial aid, including PLUS loans or other similar parent loans borrowed on
7.1the student's behalf. The cumulative SELF loan debt must not exceed the borrowing
7.2maximums in paragraph (d).
7.3(d)(1) The cumulative borrowing maximums for SELF V loans and subsequent
7.4phases for students enrolled in a bachelor's degree program or postbaccalaureate program
7.5are:
7.6(i) grade level 1, $10,000;
7.7(ii) grade level 2, $20,000;
7.8(iii) grade level 3, $30,000;
7.9(iv) grade level 4, $40,000; and
7.10(v) grade level 5, $50,000.
7.11(2) For graduate level students, the borrowing limit is $10,000 per nine-month
7.12academic year, with a cumulative maximum for all SELF debt of $70,000.
7.13(3) For all other eligible students, the cumulative borrowing maximums for SELF V
7.14loans and subsequent phases are:
7.15(i) grade level 1, $7,500;
7.16(ii) grade level 2, $15,000;
7.17(iii) grade level 3, $22,500;
7.18(iv) grade level 4, $30,000; and
7.19(v) grade level 5, $37,500.

7.20    Sec. 11. Minnesota Statutes 2008, section 136A.1701, subdivision 7, is amended to
7.21read:
7.22    Subd. 7. Repayment of loans. (a) The office shall establish repayment procedures
7.23for loans made under this section, but in no event shall the period of permitted repayment
7.24for SELF II or SELF III loans exceed ten years from the eligible student's termination of
7.25the student's postsecondary academic or vocational program, or 15 years from the date of
7.26the student's first loan under this section, whichever is less.
7.27(b) For SELF IV loans from phases after SELF III, eligible students with aggregate
7.28principal loan balances from all SELF phases that are less than $18,750 shall have a
7.29repayment period not exceeding ten years from the eligible student's graduation or
7.30termination date. For SELF IV loans from phases after SELF III, eligible students with
7.31aggregate principal loan balances from all SELF phases of $18,750 or greater shall have
7.32a repayment period not exceeding 15 years from the eligible student's graduation or
7.33termination date. For SELF IV loans from phases after SELF III, the loans shall enter
7.34repayment no later than seven years after the first disbursement date on the loan.
8.1(c) For SELF loans from phases after SELF IV, eligible students with aggregate
8.2principal loan balances from all SELF phases that are:
8.3(1) less than $20,000, must have a repayment period not exceeding ten years from
8.4the eligible student's graduation or termination date;
8.5(2) $20,000 up to $40,000, must have a repayment period not exceeding 15 years
8.6from the eligible student's graduation or termination date; and
8.7(3) $40,000 or greater, must have a repayment period not exceeding 20 years
8.8from the eligible student's graduation or termination date. For SELF loans from phases
8.9after SELF IV, the loans must enter repayment no later than nine years after the first
8.10disbursement date of the loan.

8.11    Sec. 12. Minnesota Statutes 2008, section 136A.69, subdivision 1, is amended to read:
8.12    Subdivision 1. Registration fees. (a) The office shall collect reasonable registration
8.13fees that are sufficient to recover, but do not exceed, its costs of administering the
8.14registration program. The office shall charge $1,100 for initial registration fees and $950
8.15for annual renewal fees. the fees listed in paragraphs (b) and (c) for new registrations.
8.16(b) A new school offering no more than one degree at each level during its first year
8.17must pay registration fees for each applicable level in the following amounts:
8.18
associate degree
$2,000
8.19
baccalaureate degree
$2,500
8.20
master's degree
$3,000
8.21
doctorate degree
$3,500
8.22(c) A new school that will offer more than one degree per level during its first
8.23year must pay registration fees in an amount equal to the fee for the first degree at each
8.24degree level under paragraph (b), plus fees for each additional nondegree program or
8.25degree as follows:
8.26
nondegree program
$250
8.27
additional associate degree
$250
8.28
additional baccalaureate degree
$500
8.29
additional master's degree
$750
8.30
additional doctorate degree
$1,000
8.31(d) The annual renewal registration fee is $1,200.

8.32    Sec. 13. Minnesota Statutes 2008, section 136A.69, subdivision 3, is amended to read:
8.33    Subd. 3. Degree or nondegree program addition fee. The office processing fee
8.34fees for adding a degree or nondegree program that represents a significant departure in
9.1the objectives, content, or method of delivery of degree or nondegree programs that are
9.2currently offered by the school is $500 per degree or nondegree program are as follows:.
9.3
nondegree program that is part of existing degree
-0-
9.4
nondegree program that is not a part of an existing degree
$250 each
9.5
9.6
majors, specializations, emphasis areas, concentrations, and other
similar areas of emphasis
$250 each
9.7
associate degrees
$500 each
9.8
baccalaureate degrees
$500 each
9.9
master's degrees
$750 each
9.10
doctorate degrees
$2,000 each

9.11    Sec. 14. Minnesota Statutes 2008, section 136A.69, subdivision 4, is amended to read:
9.12    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
9.13or outside consultant is necessary to review or evaluate any new or revised degree or
9.14nondegree program, the office shall be reimbursed for the expenses incurred related to the
9.15review as follows:
9.16    (1) $300 $400 for the team base fee or for a paper review conducted by a consultant
9.17if the office determines that a fact-finding visit is not required;
9.18    (2) $300 for each day or part thereof on site per team member; and
9.19    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
9.20by team members.

9.21    Sec. 15. Minnesota Statutes 2008, section 141.255, is amended to read:
9.22141.255 FEES.
9.23    Subdivision 1. Initial licensure fee. The office processing fee for an initial licensure
9.24application is:
9.25(1) $1,500 $2,500 for a school that will offer no more than one program during
9.26its first year of operation;
9.27(2) $750 for a school licensed exclusively due to the use of the term "college,"
9.28"university," "academy," or "institute" in their name, or licensed exclusively in order to
9.29participate in state grant or SELF loan financial aid programs; and
9.30(2) $2,000 for a school that will offer two or more nondegree level programs
9.31(3) $2,500, plus $500 for each additional program offered by the school, for a school
9.32 during its first year of operation; and.
9.33(3) $2,500 for a school that will offer two or more degree level programs during
9.34its first year of operation.
10.1    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a
10.2renewal licensure application is:
10.3    (1) for a category A school, as determined by the office, the fee is $865 if the school
10.4offers one program or $1,150 if the school offers two or more programs; and
10.5    (2) for a category B or C school, as determined by the office, the fee is $430 if the
10.6school offers one program or $575 if the school offers two or more programs.
10.7(1) for a school that offers one program, the license renewal fee is $1,150;
10.8(2) for a school that offers more than one program, the license renewal fee is
10.9$1,150, plus $200 for each additional program with a maximum renewal licensing fee
10.10of $2,000; and
10.11(3) schools licensed exclusively due to the use of the term "college," "university,"
10.12"academy," or "institute" in their name or licensed exclusively in order to participate in
10.13state grant or SELF loan financial aid programs shall pay a renewal fee of $750.
10.14    (b) If a license renewal application is not received by the office by the close of
10.15business at least 60 days before the expiration of the current license, a late fee of $100
10.16per business day, not to exceed $3,000, shall be assessed.
10.17    Subd. 3. Degree level addition fee. The office processing fee for adding a degree
10.18level to an existing program is $2,000 per program.
10.19    Subd. 4. Program addition fee. The office processing fee for adding a program
10.20that represents a significant departure in the objectives, content, or method of delivery of
10.21programs to those that are currently offered by the school is $500 per program.
10.22    Subd. 5. Visit or consulting fee. If the office determines that a fact-finding visit
10.23or outside consultant is necessary to review or evaluate any new or revised program, the
10.24office shall be reimbursed for the expenses incurred related to the review as follows:
10.25(1) $300 $400 for the team base fee or for a paper review conducted by a consultant
10.26if the office determines that a fact-finding visit is not required;
10.27(2) $300 for each day or part thereof on site per team member; and
10.28(3) the actual cost of customary meals, lodging, and related travel expenses incurred
10.29by team members.
10.30    Subd. 6. Modification fee. The fee for modification of any existing program is
10.31$100 and is due if there is:
10.32(1) an increase or decrease of 25 percent or more, from the original date of program
10.33approval, in clock hours, credit hours, or calendar length of an existing program;
10.34(2) a change in academic measurement from clock hours to credit hours or vice
10.35versa; or
11.1(3) an addition or alteration of courses that represent a 25 percent change or more in
11.2the objectives, content, or methods of delivery.
11.3    Subd. 7. Solicitor permit fee. The solicitor permit fee is $350 and must be paid
11.4annually.
11.5    Subd. 8. Multiple location fee. Schools wishing to operate at multiple locations
11.6must pay:
11.7(1) $250 per location, for locations two to five locations; and
11.8(2) an additional $50 $100 for each location over five.
11.9    Subd. 9. Student transcript fee. The fee for a student transcript requested from
11.10a closed school whose records are held by the office is $10 $15, with a maximum of
11.11five transcripts per request.
11.12    Subd. 10. Public office documents; copies. The office shall establish rates for
11.13copies of any public office document shall be 50 cents per page.

11.14    Sec. 16. Laws 2009, chapter 95, article 1, section 3, subdivision 6, is amended to read:
11.15
Subd. 6.Achieve Scholarship Program
4,350,000
4,350,000
11.16For scholarships under Minnesota Statutes,
11.17section 136A.127, the office shall transfer
11.18the appropriation for fiscal year 2011 to the
11.19appropriation for state grants
.

11.20    Sec. 17. Laws 2009, chapter 95, article 1, section 3, subdivision 12, is amended to read:
11.21
11.22
Subd. 12.Technical and Community College
Emergency Grants
150,000
150,000
11.23For transfer to the financial aid offices
11.24at each of the colleges of the Minnesota
11.25State Colleges and Universities to provide
11.26emergency aid grants to technical and
11.27community college students who are
11.28experiencing extraordinary economic
11.29circumstances that may result in the students
11.30dropping out of school without completing
11.31the term or their program. This is a onetime
11.32appropriation.

12.1    Sec. 18. Laws 2009, chapter 95, article 1, section 4, subdivision 4, as amended by
12.2Laws 2009, chapter 177, section 10, subdivision 4, is amended to read:
12.3
Subd. 4.Operations and Maintenance
562,041,000
613,833,000
12.4(a) It is the intention of the legislature to
12.5increase the amount of funding distributed
12.6to colleges and universities through the
12.7allocation model to provide direct support of
12.8instruction and related functions necessary
12.9to protect the core mission of educating
12.10students.
12.11(b) The Board of Trustees shall submit
12.12expenditure reduction plans by March 15,
12.132010, to the committees of the legislature
12.14with responsibility for higher education
12.15finance to achieve the 2012-2013 base
12.16established in this section at the central
12.17office and at each institution. The plan
12.18submitted by the board must be based on
12.19plans developed at each institution detailing
12.20reductions to achieve lower base allocations
12.21at that institution. Each plan must focus on
12.22protecting direct instruction.
12.23(c) For the biennium ending June 30,
12.242011, expenditures under this subdivision
12.25must not exceed $40,000,000 for
12.26technology initiatives, including technology
12.27infrastructure improvements.
12.28 (d) $1,000,000 each year is for the Northeast
12.29Minnesota Higher Education District and
12.30high schools in its area. Students from area
12.31high schools may also access the facilities
12.32and faculty of the Northeast Minnesota
12.33Higher Education District for state-of-the-art
12.34technical education opportunities, including
12.35MnSCU's 2+2 Pathways initiative.
13.1(e) $225,000 each year is to enhance eFolio
13.2Minnesota and for a center to provide on-site
13.3and Internet-based support and technical
13.4assistance to users of the state's eFolio
13.5Minnesota system to promote workforce and
13.6economic development and to enable access
13.7to workforce information generated through
13.8the eFolio Minnesota system.
13.9(f) For fiscal years 2012 and 2013 the base for
13.10operations and maintenance is $602,759,000
13.11each year.

13.12    Sec. 19. Laws 2009, chapter 95, article 1, section 5, subdivision 2, is amended to read:
13.13
Subd. 2.Operations and Maintenance
550,345,000
604,239,000
13.14(a) This appropriation includes funding for
13.15operation and maintenance of the system.
13.16(b) The Board of Regents shall submit
13.17expenditure reduction plans by March 15,
13.182010, to the committees of the legislature
13.19with responsibility for higher education
13.20finance to achieve the 2012-2013 base
13.21established in this section. The plan must
13.22focus on protecting direct instruction.
13.23(c) Appropriations under this subdivision
13.24may be used for a new scholarship under
13.25Minnesota Statutes, section 137.0225, to
13.26complement the University's Founders
13.27scholarship.
13.28(d) This appropriation includes amounts for
13.29an Ojibwe Indian language program on the
13.30Duluth campus.
13.31(e) This appropriation includes money for the
13.32Dakota language teacher training immersion
13.33program on the Twin Cities campus to
14.1prepare teachers to teach in Dakota language
14.2immersion programs.
14.3(f) This appropriation includes money for the
14.4Veterinary Diagnostic Laboratory to preserve
14.5accreditation.
14.6(g) This appropriation includes money in
14.7fiscal year 2010 for a onetime grant to the
14.8Minnesota Wildlife Rehabilitation Center for
14.9their uncompensated expenses.
14.10(h) For fiscal years 2012 and 2013, the
14.11base for operations and maintenance is
14.12$596,930,000 each year.

14.13    Sec. 20. REPEALER.
14.14Minnesota Statutes 2008, sections 136A.1701, subdivision 5; 136A.69, subdivision
14.152; and 141.255, subdivision 3, are repealed.
14.16Minnesota Statutes 2009 Supplement, sections 135A.61; and 136A.121, subdivision
14.179b, are repealed.

14.18ARTICLE 2
14.19ENVIRONMENT AND NATURAL RESOURCES

14.20
Section 1. SUMMARY OF APPROPRIATIONS.
14.21The amounts shown in this section summarize changes to direct appropriations, by
14.22fund, made in this article.
14.23
2010
2011
Total
14.24
General
$
(1,166,787)
$
(2,997,605)
$
(4,164,392)
14.25
Environmental
(1,315,000)
(1,763,000)
(3,078,000)
14.26
Remediation
(118,000)
(179,000)
(297,000)
14.27
Natural Resources
(7,000)
(877,001)
(884,001)
14.28
Game and Fish
-0-
250,000
250,000
14.29
Environmental Trust
-0-
1,000,000
1,000,000
14.30
Clean Water
-0-
2,500,000
2,500,000
14.31
Total
$
(2,606,787)
$
(3,677,606)
$
(6,284,393)

14.32
Sec. 2. APPROPRIATIONS.
15.1The sums shown in the columns marked "Appropriations" are added to or, if shown
15.2in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to
15.3the agencies and for the purposes specified in this article. The appropriations are from the
15.4general fund, or another named fund, and are available for the fiscal years indicated for
15.5each purpose. The figures "2010" and "2011" used in this article mean that the addition to
15.6or subtraction from the appropriation listed under them are available for the fiscal year
15.7ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010.
15.8"The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.
15.9Supplemental appropriations, reductions to appropriations, and transfers for the fiscal year
15.10ending June 30, 2010, are effective the day following final enactment.
15.11
APPROPRIATIONS
15.12
Available for the Year
15.13
Ending June 30
15.14
2010
2011

15.15
Sec. 3. POLLUTION CONTROL AGENCY
15.16
Subdivision 1.Total Appropriation
$
(1,710,000)
$
(2,397,000)
15.17
Appropriations by Fund
15.18
2010
2011
15.19
General
(276,000)
(455,000)
15.20
Environmental
(1,316,000)
(1,763,000)
15.21
Remediation
(118,000)
(179,000)
15.22The appropriation additions or reductions for
15.23each purpose are specified in the following
15.24subdivisions.
15.25
Subd. 2.Water
(439,000)
(626,000)
15.26
Appropriations by Fund
15.27
2010
2011
15.28
General
(186,000)
(304,000)
15.29
Environmental
(253,000)
(322,000)
15.30The legislature approves the groundwater
15.31protection plan submitted to the legislature
15.32in January 2010 as required by Laws 2009,
15.33chapter 172, article 2, section 4, paragraph
15.34(m), and authorizes the Pollution Control
16.1Agency to spend that appropriation in
16.2accordance with the approved plan.
16.3
Subd. 3.Air
(174,000)
(323,000)
16.4
Appropriations by Fund
16.5
2010
2011
16.6
Environmental
(174,000)
(323,000)
16.7
Subd. 4.Land
(149,000)
(274,000)
16.8
Appropriations by Fund
16.9
2010
2011
16.10
Environmental
(31,000)
(95,000)
16.11
Remediation
(118,000)
(179,000)
16.12
16.13
Subd. 5.Environmental Assistance and Cross
Media
(919,000)
(1,118,000)
16.14
Appropriations by Fund
16.15
2010
2011
16.16
General
(61,000)
(95,000)
16.17
Environmental
(858,000)
(1,023,000)
16.18
Subd. 6.Administrative Support
(29,000)
(56,000)
16.19
Appropriations by Fund
16.20
2010
2011
16.21
General
(29,000)
(56,000)
16.22
Subd. 7.Transfers to the General Fund
16.23By July 1, 2010, the commissioner of the
16.24Pollution Control Agency shall transfer
16.25$3,429,000 from the environmental fund to
16.26the general fund. Of this amount, $200,000
16.27is from the metropolitan landfill account
16.28and $150,000 is from the electronic waste
16.29account in the environmental fund.
16.30By July 1, 2010, the commissioner shall
16.31transfer $297,000 from the remediation fund
16.32to the general fund.
16.33By July 1, 2010, the commissioner shall
16.34transfer $790,000 from the agency's indirect
17.1cost account in the miscellaneous special
17.2revenue account to the general fund.

17.3
Sec. 4. NATURAL RESOURCES
17.4
Subdivision 1.Total Appropriation
$
(859,787)
$
(1,371,606)
17.5
Appropriations by Fund
17.6
General
(859,787)
(1,759,605)
17.7
Natural Resources
-0-
(862,001)
17.8
Game and Fish
-0-
250,000
17.9
Environmental Trust
-0-
1,000,000
17.10
Subd. 2.Lands and Minerals
(114,450)
(283,050)
17.11
Appropriations by Fund
17.12
General
(114,450)
(283,050)
17.13
Subd. 3.Water Resources Management
(50,000)
(120,000)
17.14
Appropriations by Fund
17.15
General
(50,000)
(120,000)
17.16
Subd. 4.Forest Management
(176,000)
891,000
17.17
Appropriations by Fund
17.18
General
(176,000)
(359,000)
17.19
Game and Fish
-0-
250,000
17.20
Environmental Trust
-0-
1,000,000
17.21$250,000 in 2011 is from the heritage
17.22enhancement account to maintain and expand
17.23the ecological classification system program
17.24on state forest lands. This is a onetime
17.25appropriation.
17.26$1,000,000 in 2011 is from the environmental
17.27trust fund to the commissioner of natural
17.28resources under Minnesota Statutes, section
17.2988.82, for grants to communities to provide
17.30funding for no-interest loans to private land
17.31owners for the removal of emerald ash borer
17.32infested ash trees on private lands. Grants
17.33made to communities will be available for
17.34ten years. At the end of the ten-year grant
18.1period, the full grant amount will be canceled
18.2for redeposit in the environmental trust fund.
18.3This appropriation cancels on June 30, 2012.
18.4$106,089 in 2011 is transferred from the
18.5forest resource assessment appropriation in
18.6the dedicated receipts account in the natural
18.7resources fund to the general fund. This is a
18.8onetime transfer.
18.9
Subd. 5.Parks and Trails Management
(203,337)
(1,345,556)
18.10
Appropriations by Fund
18.11
General
(203,337)
(483,555)
18.12
Natural Resources
0
(862,001)
18.13
Subd. 6.Fish and Wildlife Management
-0-
(50,000)
18.14
Appropriations by Fund
18.15
General
-0-
(50,000)
18.16$340,000 in 2011 is transferred from the
18.17account balance in the water recreation
18.18electronic licensing appropriation in the
18.19natural resources fund to the general fund.
18.20This is a onetime transfer.
18.21
Subd. 7.Ecological Services
(170,000)
(140,000)
18.22
Appropriations by Fund
18.23
General
(170,000)
(140,000)
18.24
Subd. 8.Enforcement
(136,000)
(224,000)
18.25
Appropriations by Fund
18.26
General
(136,000)
(224,000)
18.27On June 30, 2010, the balance of surcharges
18.28on criminal and traffic offenders credited
18.29to the game and fish fund under Minnesota
18.30Statutes, section 357.021, subdivision 7, and
18.31collected prior to that date are transferred to
18.32the general fund.
18.33
Subd. 9.Operations Support
(10,000)
(100,000)
19.1
Appropriations by Fund
19.2
General
(10,000)
(100,000)

19.3
19.4
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
19.5
Subdivision 1.Total Appropriation
$
-0-
$
(460,000)
19.6
Appropriations by Fund
19.7
General
-0-
(460,000)
19.8$20,000 in 2011 is a reduction from
19.9the appropriation for establishing and
19.10maintaining riparian vegetation buffers of
19.11restored native prairie and restored prairie.
19.12$100,000 in 2011 is a reduction in the
19.13appropriation for cost-share grants to local
19.14governments for public drainage records
19.15modernization.
19.16$100,000 in 2011 is a reduction from
19.17the appropriation for grants to local units
19.18of government within the 11-county
19.19metropolitan area to improve response to
19.20major wetland violations.
19.21$100,000 in 2011 is a reduction from the
19.22appropriation to transfer to the commissioner
19.23of natural resources for enforcement of
19.24wetland violations.
19.25$25,000 in 2011 is a reduction in the
19.26appropriation to provide assistance to local
19.27drainage management officials and for the
19.28costs of the Drainage Work Group.
19.29$40,000 in 2011 is a reduction in the
19.30appropriation for implementation and
19.31enforcement of the Wetland Conservation
19.32Act.
19.33$384,000 of the current balance in the
19.34agricultural watershed restoration account
20.1is canceled back to the general fund on
20.2December 15, 2010.
20.3
Subd. 2.Reduction; DR-1717 Disaster Relief
20.4Laws 2007, First Special Session chapter 2,
20.5article 1, is reduced as follows:
20.6$40,000 in 2010 from funds received
20.7interagency for disaster relief in the area
20.8included in DR-1717.
20.9
20.10
Subd. 3.Reduction; Rehabilitation Erosion
and Sediment Control
20.11Laws 2008, chapter 363, article 5, section 5,
20.12is reduced as follows:
20.13$125,000 in 2010 from the appropriation
20.14for implementing rehabilitation erosion and
20.15sediment control projects in the area included
20.16in DR-1717.
20.17
Subd. 4.Returned Grants
20.18Beginning July 1, 2010, all returned grant
20.19money originating from general fund grant
20.20programs will be deposited into individual
20.21accounts in the special revenue fund and held
20.22for eventual transfer back to the general fund.
20.23On December 15, 2010, and on December
20.2415 of each year thereafter, $310,000 of the
20.25receipts in this special revenue fund will be
20.26transferred to the general fund. If less than
20.27$310,000 is available on the transfer date, an
20.28additional transfer on June 15 sufficient to
20.29make the $310,000 annual obligation will
20.30be made.

20.31
Sec. 6. METROPOLITAN COUNCIL
20.32
Subdivision 1.Total Appropriation
$
-0-
$
2,388,000
21.1
Appropriations by Fund
21.2
2010
2011
21.3
General
-0-
(112,000)
21.4
Clean Water
-0-
2,500,000
21.5The fiscal year 2011 general fund base
21.6appropriation for regional parks is reduced
21.7by $112,000. This reduction is permanent.
21.8$2,000,000 is from the clean water fund
21.9pursuant to Minnesota Statutes, section
21.10114D.50, to the Metropolitan Council to
21.11provide grants or loans to local governments
21.12for nonmunicipal wastewater inflow and
21.13infiltration reduction programs in the
21.14metropolitan area, as defined in Minnesota
21.15Statutes, section 473.121, subdivision 2.
21.16This appropriation applies in the counties of
21.17Anoka, Carver, Dakota, Hennepin, Ramsey,
21.18Scott, and Washington, and is available until
21.19expended.
21.20$500,000 is from the clean water fund for
21.21implementation of the master water supply
21.22plan developed under Minnesota Statutes,
21.23section 473.1565. This appropriation applies
21.24in the counties of Anoka, Carver, Dakota,
21.25Hennepin, Ramsey, Scott, and Washington,
21.26and is available until expended.

21.27
21.28
Sec. 7. MINNEOTA CONSERVATION
CORPS
21.29
Subdivision 1.Total Appropriation
$
(14,000)
$
(29,000)
21.30
Appropriations by Fund
21.31
2010
2011
21.32
General
(7,000)
(14,000)
21.33
Natural Resources
(7,000)
(15,000)
21.34The appropriation reduction in the natural
21.35resources fund is in the current biennium
22.1only. On June 1, 2010, $7,000 will be
22.2transferred from the natural resources fund to
22.3the general fund. On June 1, 2011, $15,000
22.4will be transferred from the natural resources
22.5fund to the general fund.

22.6
Sec. 8. ZOOLOGICAL BOARD
22.7
Subdivision 1.Total Appropriation
$
(24,000)
$
(197,000)
22.8
Appropriations by Fund
22.9
2010
2011
22.10
General
(24,000)
(197,000)

22.11    Sec. 9. [97A.26] PEACE OFFICER TRAINING ACCOUNT.
22.12    Subdivision 1. Account established; sources. The peace officer training account is
22.13created in the game and fish fund in the state treasury. Revenue from the portion of the
22.14surcharges assessed to criminal and traffic offenders under section 357.021, subdivision
22.157, clause (1), shall be deposited in the account and is appropriated to the commissioner.
22.16Money in the account may be spent only for the purposes provided in subdivision 2.
22.17    Subd. 2. Purposes of account. Money in the peace officer training account may be
22.18spent by the commissioner only for peace officer training for employees of the department
22.19who are licensed under sections 626.84 to 626.863 to enforce game and fish laws.

22.20    Sec. 10. Minnesota Statutes 2008, section 103G.705, subdivision 2, is amended to read:
22.21    Subd. 2. Stream protection and improvement fund. There is established in the
22.22state treasury a stream protection and redevelopment fund. All repayments of loans
22.23made and administrative fees assessed under subdivision 1 must be deposited in this
22.24fund. Interest earned on money in the fund accrues to the fund and money in the fund
22.25is appropriated to the commissioner of natural resources for purposes of the stream
22.26protection and redevelopment program, including costs incurred by the commissioner to
22.27establish and administer the program. Beginning in fiscal year 2010, all repayments of
22.28loans made and administrative fees assessed under subdivision 1 must be transferred
22.29to the general fund. This includes any balance within the fund from repayments and
22.30administrative fees assessed prior to July 1, 2009.
22.31EFFECTIVE DATE.This section is effective the day following final enactment.

23.1    Sec. 11. Minnesota Statutes 2009 Supplement, section 357.021, subdivision 7, is
23.2amended to read:
23.3    Subd. 7. Disbursement of surcharges by commissioner of management and
23.4budget. (a) Except as provided in paragraphs (b), (c), and (d), the commissioner of
23.5management and budget shall disburse surcharges received under subdivision 6 and
23.6section 97A.065, subdivision 2, as follows:
23.7    (1) one percent shall be credited to the peace officer training account in the game
23.8and fish fund and appropriated to the commissioner of natural resources to provide peace
23.9officer training for employees of the Department of Natural Resources who are licensed
23.10under sections 626.84 to 626.863, and who possess peace officer authority for the purpose
23.11of enforcing game and fish laws;
23.12    (2) 39 percent shall be credited to the peace officers training account in the special
23.13revenue fund; and
23.14    (3) 60 percent shall be credited to the general fund.
23.15    (b) The commissioner of management and budget shall credit $3 of each surcharge
23.16received under subdivision 6 and section 97A.065, subdivision 2, to the general fund.
23.17    (c) In addition to any amounts credited under paragraph (a), the commissioner of
23.18management and budget shall credit $47 of each surcharge received under subdivision 6
23.19and section 97A.065, subdivision 2, and the $12 parking surcharge, to the general fund.
23.20    (d) If the Ramsey County Board of Commissioners authorizes imposition of the
23.21additional $1 surcharge provided for in subdivision 6, paragraph (a), the court administrator
23.22in the Second Judicial District shall transmit the surcharge to the commissioner of
23.23management and budget. The $1 special surcharge is deposited in a Ramsey County
23.24surcharge account in the special revenue fund and amounts in the account are appropriated
23.25to the trial courts for the administration of the petty misdemeanor diversion program
23.26operated by the Second Judicial District Ramsey County Violations Bureau.

23.27    Sec. 12. Laws 2009, chapter 172, article 2, section 5, is amended to read:
23.28
23.29
Sec. 5. DEPARTMENT OF NATURAL
RESOURCES
$
6,690,000
$
7,835,000
23.30(a) $1,240,000 the first year and $2,460,000
23.31the second year are for assisting in water
23.32quality assessments in supporting the
23.33identification of impaired waters.
24.1(b) $600,000 the first year and $525,000 the
24.2second year are for drinking water planning
24.3and protection activities.
24.4(c) $1,050,000 the first year and $1,050,000
24.5the second year are for TMDL development
24.6and TMDL implementation plans for waters
24.7listed on the United States Environmental
24.8Protection Agency approved Impaired
24.9Waters List in accordance with Minnesota
24.10Statutes, chapter 114D.
24.11(d) $2,800,000 the first year and $2,800,000
24.12the second year are to acquire and distribute
24.13high-resolution digital elevation data
24.14using light detection and ranging to aid
24.15with impaired waters modeling and total
24.16maximum daily load implementation under
24.17Minnesota Statutes, chapter 114D. The data
24.18will be collected for areas of the state that
24.19have not acquired such data prior to January
24.201, 2007, or to complete acquisition and
24.21distribution of the data for those areas of
24.22the state that have not previously received
24.23state funds for acquiring and distributing
24.24the data. The distribution of data acquired
24.25under this paragraph must be conducted
24.26under the auspices of the Land Management
24.27Information Center or its successor, which
24.28shall receive 2.5 percent of the appropriation
24.29in this paragraph to support coordination of
24.30data acquisition and distribution. Mapping
24.31and data set distribution under this paragraph
24.32must be completed within three years of
24.33funds availability. The commissioner shall
24.34utilize department staff whenever possible.
24.35The commissioner may contract for services
24.36only if they cannot otherwise be provided
25.1by the department. If the commissioner
25.2contracts for services with this appropriation
25.3and any of the work done under the contract
25.4will be done outside of the United States, the
25.5commissioner must report to the chairs of the
25.6house of representatives and senate finance
25.7committees on the proposed contract at least
25.830 days before entering into the contract.
25.9The report must include an analysis of why
25.10the contract with the selected contractor
25.11provides the state with "best value," as
25.12defined in Minnesota Statutes, section
25.1316C.02 ; any alternatives to the selected
25.14contractor that were considered; what data
25.15will be provided to the contractor, including
25.16the data that will be transmitted outside of
25.17the United States; what security measures
25.18will be taken to ensure that the data is
25.19treated in accordance with the Minnesota
25.20Government Data Practices Act; and what
25.21remedies will be available to the state if the
25.22data is not treated in accordance with the
25.23Minnesota Government Data Practices Act.
25.24This appropriation is available until June 30,
25.252012.
25.26(e) $250,000 the first year and $250,000
25.27the second year are to adopt rules for the
25.28Mississippi River corridor critical area
25.29under Minnesota Statutes, section 116G.15.
25.30The commissioner shall begin rulemaking
25.31under chapter 14 no later than January 15,
25.322010. At least 30 days prior to beginning
25.33the rulemaking, the commissioner shall
25.34notify local units of government within the
25.35Mississippi River corridor critical area of
25.36the intent to adopt rules. The local units of
26.1government shall make reasonable efforts to
26.2notify the public of the contact information
26.3for the appropriate department staff. The
26.4commissioner shall maintain an e-mail
26.5list of interested parties to provide timely
26.6information about the proposed schedule
26.7for rulemaking, opportunities for public
26.8comment, and contact information for the
26.9appropriate department staff.
26.10(f) $500,000 the first year and $500,000
26.11the second year are to investigate physical
26.12and recharge characteristics as part of the
26.13collection and interpretation of subsurface
26.14geological information and acceleration of
26.15the county geologic atlas program. This
26.16appropriation represents a continuing effort
26.17to complete the county geologic atlases
26.18throughout the state in order to provide
26.19information and assist in planning for the
26.20sustainable use of groundwater and surface
26.21water that does not harm ecosystems,
26.22degrade water quality, or compromise the
26.23ability of future generations to meet their
26.24own needs. This appropriation is available
26.25until December 31, 2014.
26.26(g) $250,000 the first year and $250,000
26.27the second year are for nonpoint source
26.28restoration and protection activities.

26.29ARTICLE 3
26.30ENERGY

26.31
26.32
26.33
Section 1. DEPARTMENT OF
COMMERCE-OFFICE OF ENERGY
SECURITY
26.34
26.35
Subdivision 1.Telecommunications Access
Minnesota
27.1Prior to June 30, 2010, the commissioner
27.2of commerce shall transfer $128,000
27.3from the unexpended balance of the
27.4telecommunications access Minnesota fund
27.5established in Minnesota Statutes, section
27.6237.52, to the general fund.
27.7Prior to June 30, 2011, the commissioner
27.8of commerce shall transfer $135,000
27.9from the unexpended balance of the
27.10telecommunications access Minnesota fund
27.11established in Minnesota Statutes, section
27.12237.52, to the general fund.
27.13
Subd. 2.Transfers
27.14Prior to June 30, 2010, the commissioner
27.15of commerce shall transfer $4,000 from the
27.16unexpended balance of the renewable energy
27.17equipment grants account established under
27.18Minnesota Statutes, section 239.101, to the
27.19general fund.
27.20Prior to June 30, 2010, the commissioner
27.21of commerce shall transfer $15,000 from
27.22the unexpended balance of the energy
27.23planning and systems account established
27.24in Minnesota Statutes, section 216C.052,
27.25to the general fund. Funds transferred to
27.26the general fund will be considered general
27.27administrative costs of the administrator.
27.28Prior to June 30, 2010, the commissioner
27.29of commerce shall transfer $43,000 from
27.30the unexpended balance of the conservation
27.31improvement technical assistance account
27.32established in Minnesota Statutes, section
27.33216B.241, subdivision 1d, to the general
27.34fund.
28.1Prior to June 30, 2011, the commissioner
28.2of commerce shall transfer $17,000 from
28.3the unexpended balance of the conservation
28.4improvement technical assistance account
28.5established in Minnesota Statutes, section
28.6216B.241, subdivision 1d, to the general
28.7fund.
28.8Prior to June 30, 2010, the commissioner
28.9of commerce shall transfer $316,000
28.10from the unexpended balance of the
28.11conservation improvement applied research
28.12and development grants account established
28.13in Minnesota Statutes, section 216B.241,
28.14subdivision 1e, to the general fund.
28.15Prior to June 30, 2011, the commissioner
28.16of commerce shall transfer $213,000
28.17from the unexpended balance of the
28.18conservation improvement applied research
28.19and development grants account established
28.20in Minnesota Statutes, section 216B.241,
28.21subdivision 1e, to the general fund.
28.22Prior to June 30, 2010, the commissioner
28.23of commerce shall transfer $22,000 from
28.24the unexpended balance of the residential
28.25propane account established in Minnesota
28.26Statutes, section 239.785, to the general fund.
28.27Prior to June 30, 2011, the commissioner
28.28of commerce shall transfer $18,000 from
28.29the unexpended balance of the residential
28.30propane account established in Minnesota
28.31Statutes, section 239.785, to the general fund.
28.32Prior to June 30, 2010, the commissioner of
28.33commerce shall transfer $22,000 from the
28.34unexpended balance of the facilities energy
28.35efficiency account established in Minnesota
29.1Statutes, section 216B.241, subdivision 1f, to
29.2the general fund.
29.3Prior to June 30, 2011, the commissioner of
29.4commerce shall transfer $30,000 from the
29.5unexpended balance of the facilities energy
29.6efficiency account established in Minnesota
29.7Statutes, section 216B.241, subdivision 1f, to
29.8the general fund.
29.9Prior to June 30, 2010, the commissioner
29.10of commerce shall transfer $11,000 from
29.11the unexpended balance of the power plant
29.12assessment account established in Minnesota
29.13Statutes, section 216E.18, subdivision 3, to
29.14the general fund. Funds transferred to the
29.15general fund will be considered expenditures
29.16for assessment purposes.
29.17Prior to June 30, 2011, the commissioner
29.18of commerce shall transfer $15,000 from
29.19the unexpended balance of the power plant
29.20assessment account established in Minnesota
29.21Statutes, section 216E.18, subdivision 3, to
29.22the general fund. Funds transferred to the
29.23general fund will be considered expenditures
29.24for assessment purposes.
29.25Prior to June 30, 2010, the commissioner
29.26of commerce shall transfer the remaining
29.27balance of the pipeline account under
29.28Minnesota Statutes, section 216G.02, to the
29.29general fund.
29.30Prior to June 30, 2010, the commissioner of
29.31commerce shall transfer $40,000 from the
29.32unexpended balance of the biogas recovery
29.33grants appropriation in Laws 2007, chapter
29.3457, article 2, section 3, subdivision 6, to the
29.35general fund.
30.1Prior to June 30, 2010, the commissioner
30.2of commerce shall transfer $4,000 from the
30.3unexpended balance of the solar electricity
30.4projects appropriation in Laws 2007, chapter
30.557, article 2, section 3, subdivision 6, to the
30.6general fund.
30.7Prior to June 30, 2010, the commissioner
30.8of commerce shall transfer $6,000 from
30.9the unexpended balance of the CERTS
30.10continuation appropriation in Laws 2007,
30.11chapter 57, article 2, section 3, subdivision
30.126, to the general fund.
30.13Prior to June 30, 2010, the commissioner
30.14of commerce shall transfer $39,000 from
30.15the unexpended balance of the automotive
30.16projects appropriation in Laws 2007, chapter
30.1757, article 2, section 3, subdivision 6, to the
30.18general fund.
30.19Prior to June 30, 2010, the commissioner of
30.20commerce shall transfer $19,000 from the
30.21unexpended balance of the hydrogen road
30.22map appropriation in Laws 2007, chapter
30.2357, article 2, section 3, subdivision 6, to the
30.24general fund.
30.25Prior to June 30, 2010, the commissioner of
30.26commerce shall transfer $40,000 from the
30.27unexpended balance of the renewable energy
30.28grants appropriation in Laws 2007, chapter
30.2957, article 2, section 3, subdivision 6, to the
30.30general fund.
30.31Prior to June 30, 2010, the commissioner
30.32of commerce shall transfer $8,000 from the
30.33unexpended balance of the green economy
30.34and manufacturing appropriation in Laws
31.12008, chapter 363, article 6, section 3,
31.2subdivision 4, to the general fund.
31.3Prior to June 30, 2010, the commissioner of
31.4commerce shall transfer $13,000 from the
31.5unexpended balance of the greenhouse gas
31.6advisory group appropriation in Laws 2008,
31.7chapter 340, section 5, to the general fund.
31.8Prior to June 30, 2010, the commissioner
31.9of commerce shall transfer $18,000 from
31.10the unexpended balance of the heat flow
31.11maps appropriation in Laws 2009, chapter
31.1237, article 2, section 3, subdivision 7, to the
31.13general fund.
31.14Prior to June 30, 2010, the commissioner
31.15of commerce shall transfer $31,000 from
31.16the unexpended balance of the CERTS
31.17appropriation in Laws 2009, chapter 37,
31.18article 2, section 3, subdivision 7, to the
31.19general fund.
31.20Prior to June 30, 2011, the commissioner
31.21of commerce shall transfer $38,000 from
31.22the unexpended balance of the CERTS
31.23appropriation in Laws 2009, chapter 37,
31.24article 2, section 3, subdivision 7, to the
31.25general fund.
31.26Prior to June 30, 2010, the commissioner
31.27of commerce shall transfer $24,000 from
31.28the unexpended balance of the solar rebates
31.29appropriation in Laws 2009, chapter 37,
31.30article 2, section 3, subdivision 7, to the
31.31general fund.
31.32Prior to June 30, 2010, the commissioner
31.33of commerce shall transfer $90,000 from
31.34the unexpended balance of the IRETI grant
32.1appropriation in Laws 2009, chapter 37,
32.2article 2, section 13, to the general fund.
32.3Prior to June 30, 2010, the commissioner of
32.4commerce shall transfer $36,000 from the
32.5unexpended balance of the solar lab grant
32.6appropriation in Laws 2009, chapter 37,
32.7article 2, section 13, to the general fund.

32.8ARTICLE 4
32.9AGRICULTURE

32.10
Section 1. APPROPRIATIONS.
32.11Unless otherwise stated, the sums shown in the columns marked "Appropriations"
32.12are added to, or if shown in parentheses, subtracted from the appropriations in Laws
32.132009, chapter 94, article 1, to the agencies and for the purposes specified in this article.
32.14The appropriations are from the general fund, or another named fund, and are available
32.15for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in
32.16this article mean that the addition to or subtraction from the appropriation listed under
32.17them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
32.18Supplemental appropriations and reductions to appropriations for the fiscal year ending
32.19June 30, 2010, are effective the day following final enactment.
32.20
APPROPRIATIONS
32.21
Available for the Year
32.22
Ending June 30
32.23
2010
2011

32.24
Sec. 2. AGRICULTURE
32.25
Subdivision 1.Total Appropriation
$
(1,217,000)
$
(1,484,000)
32.26The amounts that may be spent for each
32.27purpose are specified in the following
32.28subdivisions.
32.29
Subd. 2.Protection Services
(142,000)
(467,000)
32.30
32.31
Subd. 3.Agricultural Marketing and
Development
(127,000)
(8,000)
32.32$6,000 in 2010 is a reduction for grants to
32.33farmers for demonstration projects involving
33.1sustainable agriculture, as authorized in
33.2Minnesota Statutes, section 17.116.
33.3$113,000 in 2010 is a reduction from Laws
33.42006, chapter 282, article 10, section 4, for
33.5the agricultural best management program.
33.6
33.7
Subd. 4.Bioenergy and Value-Added
Agriculture
(821,000)
(855,000)
33.8$821,000 in 2010 and $855,000 in 2011 are
33.9reductions from the appropriation for ethanol
33.10producer payments.
33.11
33.12
Subd. 5.Administration and Financial
Assistance
(127,000)
(154,000)
33.13$23,000 in 2010 and $36,000 in 2011
33.14are reductions from the appropriation for
33.15the dairy development and profitability
33.16enhancement and dairy business planning
33.17grant programs established under Laws 1997,
33.18chapter 216, section 7, subdivision 2, and
33.19Laws 2001, First Special Session chapter 2,
33.20section 9, subdivision 2.
33.21$1,000 in 2011 is a reduction from the
33.22appropriation for a grant to the Minnesota
33.23Livestock Breeders Association.
33.24$15,000 in 2011 is a reduction from the
33.25appropriation for a grant to the Minnesota
33.26Agricultural Education and Leadership
33.27Council.
33.28$28,000 in 2011 is a reduction from the
33.29appropriation for payments to county
33.30and district agricultural societies and
33.31associations.
33.32$3,000 in 2011 is a reduction from the
33.33appropriation for the Northern Crops
33.34Institute.
34.1$4,000 in 2010 and $4,000 in 2011 are
34.2reductions from the appropriation for grants
34.3to the Minnesota Turf Seed Council for
34.4basic and applied research on the improved
34.5production of forage and turf seed related to
34.6new and improved varieties.
34.7$3,000 in 2010 and $3,000 in 2011 are
34.8reductions from the appropriation for grants
34.9to the Minnesota Turf Seed Council for basic
34.10and applied agronomic research on native
34.11plants including plant breeding, nutrient
34.12management, pest management, disease
34.13management yield, and viability.
34.14$28,000 in 2010 and $30,000 in 2011 are
34.15reductions from the appropriation for grants
34.16to Second Harvest Heartland on behalf of
34.17Minnesota's six Second Harvest food banks
34.18for the purchase of milk for distribution to
34.19Minnesota's food shelves and other charitable
34.20organizations that are eligible to receive food
34.21from the food banks.
34.22$60,000 in 2010 is a reduction from the
34.23appropriation for the agricultural growth,
34.24research, and innovation program.
34.25$6,000 in 2011 is a reduction from the
34.26appropriation for transfer to the Board of
34.27Trustees of the Minnesota State Colleges and
34.28Universities for mental health counseling
34.29support to farm families and business
34.30operators through farm business management
34.31programs at Central Lakes College and
34.32Ridgewater College.
34.33$1,000 in 2011 is a reduction from the
34.34appropriation for a grant to the Minnesota
34.35Horticultural Society.
35.1$4,000 in 2010 is a reduction from the
35.2appropriation for transfer to the University
35.3of Minnesota Extension service for
35.4farm-to-school grants to school districts in
35.5Minneapolis, Moorhead, White Earth, and
35.6Willmar.
35.7$5,000 in 2010 and $27,000 in 2011 are
35.8reductions from the appropriation and are
35.9intended to be a reduction in costs attributed
35.10to the commissioner's office.
35.11
Subd. 6.Transfers In
35.12Notwithstanding any other law to the
35.13contrary, the commissioner of management
35.14and budget shall transfer $405,000 from
35.15the agricultural fund to the general fund
35.16by July 15, 2010. By July 15, 2011, the
35.17commissioner of management and budget
35.18will transfer $629,000 from the agricultural
35.19fund to the general fund.
35.20Notwithstanding any other law to the
35.21contrary, the commissioner of management
35.22and budget shall transfer $6,000 from the
35.23miscellaneous special revenue fund to the
35.24general fund by July 15, 2010. By July 15,
35.252011, the commissioner of management
35.26and budget shall transfer $6,000 from the
35.27miscellaneous special revenue fund to the
35.28general fund.

35.29
Sec. 3. BOARD OF ANIMAL HEALTH
$
(87,000)
$
(141,000)
35.30$87,000 in 2010 and $141,000 in 2011 is
35.31from the appropriation for general operations.

35.32
35.33
Sec. 4. AGRICULTURE UTILIZATION
RESEARCH INSTITUTE
$
(382,000)
$
(1,442,000)

36.1    Sec. 5. Minnesota Statutes 2008, section 18G.07, is amended to read:
36.218G.07 TREE CARE AND TREE TRIMMING COMPANY REGISTRY
36.3REGISTRATION.
36.4    Subdivision 1. Creation of registry. The commissioner shall maintain a list of all
36.5persons and companies that provide tree care or tree trimming services in Minnesota.
36.6All tree care providers, tree trimmers, and persons who remove trees, limbs, branches,
36.7brush, or shrubs for hire must provide the following information to be registered by the
36.8commissioner:.
36.9    Subd. 1a. Basic registration. (a) Tree care or tree trimming companies must
36.10register annually by providing the following to the commissioner:
36.11(1) accurate and up-to-date business name, address, and telephone number;
36.12(2) a complete list of all Minnesota counties in which they work; and
36.13(3) a complete list of persons in the business who are certified by the International
36.14Society of Arborists a nonrefundable fee of $25 for initial application or renewing basic
36.15registration.
36.16(b) Registration expires December 31, must be renewed annually, and the fee
36.17remitted by January 7 of the year for which it is issued. In addition, a penalty of ten
36.18percent of the fee due must be charged for each month, or portion of a month, that the fee
36.19is delinquent up to a maximum of 30 percent for any application for renewal postmarked
36.20after December 31.
36.21    Subd. 1b. Professional registration. (a) Professional registration is provided to
36.22identify those companies with qualifications to treat trees for pests or diseases or prune,
36.23trim, or remove trees from above the ground. Tree care or tree trimming companies may
36.24obtain annual professional registration by providing the following to the commissioner:
36.25(1) accurate and up-to-date business name, address, and telephone number;
36.26(2) a complete list of all Minnesota counties in which they work;
36.27(3) a complete list of persons in the business who have an associate's degree or
36.28higher in arboriculture, forestry, or horticulture; a complete list of persons in the business
36.29who are certified by the International Society of Arboriculture (ISA), and their ISA
36.30certification identification number; and a complete list of persons in the business who are
36.31certified by the Minnesota Nursery and Landscape Association (MNLA);
36.32(4) as appropriate, evidence of accreditation of the company by the Tree Care
36.33Industry Association;
36.34(5) a complete list of persons in the business who are licensed pesticide applicators
36.35in Minnesota if the company is applying restricted use pesticides;
37.1(6) verification by the company that it maintains a Minnesota workers' compensation
37.2insurance certificate and that the company maintains a certificate of liability insurance and
37.3has a Minnesota sales tax identification number. Companies that prune or trim trees from
37.4above the ground must be covered by classification 0106 of the workers' compensation
37.5insurance codes; and
37.6(7) a nonrefundable fee of $250 for initial application or renewing a basic
37.7registration.
37.8(b) Registration expires December 31, must be renewed annually, and the fee
37.9remitted by January 7 of the year for which it is issued. In addition, a penalty of ten
37.10percent of the fee due must be charged for each month, or portion of a month, that the
37.11fee is delinquent up to a maximum of 30 percent for any application for renewal not
37.12received by the due date.
37.13    Subd. 2. Information dissemination. The commissioner shall provide registered
37.14tree care companies with information and data regarding any existing or potential
37.15regulated forest pest infestations within the state.
37.16    Subd. 3. Violation. It is unlawful for a person to provide tree care or tree trimming
37.17services in Minnesota without being registered with the commissioner.

37.18    Sec. 6. Laws 2007, chapter 45, article 1, section 3, subdivision 4, as amended by Laws
37.192008, chapter 297, article 1, section 64; and Laws 2008, chapter 363, article 7, section 6,
37.20is amended to read:
37.21
37.22
Subd. 4. Bioenergy and Value-Added
Agricultural Products
19,918,000
15,168,000
37.23$15,168,000 the first year and $15,168,000
37.24the second year are for ethanol producer
37.25payments under Minnesota Statutes, section
37.2641A.09 . If the total amount for which all
37.27producers are eligible in a quarter exceeds
37.28the amount available for payments, the
37.29commissioner shall make payments on a
37.30pro rata basis. If the appropriation exceeds
37.31the total amount for which all producers
37.32are eligible in a fiscal year for scheduled
37.33payments and for deficiencies in payments
37.34during previous fiscal years, the balance
37.35in the appropriation is available to the
38.1commissioner for value-added agricultural
38.2programs including the value-added
38.3agricultural product processing and
38.4marketing grant program under Minnesota
38.5Statutes, section 17.101, subdivision 5. The
38.6appropriation remains available until spent.
38.7$3,000,000 the first year is for grants to
38.8bioenergy projects. The NextGen Energy
38.9Board shall make recommendations to
38.10the commissioner on grants for owners of
38.11Minnesota facilities producing bioenergy,
38.12organizations that provide for on-station,
38.13on-farm field scale research and outreach to
38.14develop and test the agronomic and economic
38.15requirements of diverse stands of prairie
38.16plants and other perennials for bioenergy
38.17systems, or certain nongovernmental
38.18entities. For the purposes of this paragraph,
38.19"bioenergy" includes transportation fuels
38.20derived from cellulosic material as well as
38.21the generation of energy for commercial heat,
38.22industrial process heat, or electrical power
38.23from cellulosic material via gasification
38.24or other processes. The board must give
38.25priority to a bioenergy facility that is at
38.26least 60 percent owned and controlled by
38.27farmers, as defined in Minnesota Statutes,
38.28section 500.24, subdivision 2, paragraph
38.29(n), or natural persons residing in the
38.30county or counties contiguous to where the
38.31facility is located. Grants are limited to 50
38.32percent of the cost of research, technical
38.33assistance, or equipment related to bioenergy
38.34production or $1,000,000, whichever is
38.35less. Grants to nongovernmental entities
38.36for the development of business plans and
39.1structures related to community ownership
39.2of eligible bioenergy facilities together may
39.3not exceed $150,000. The board shall make
39.4a good faith effort to select projects that have
39.5merit and when taken together represent a
39.6variety of bioenergy technologies, biomass
39.7feedstocks, and geographic regions of the
39.8state. Projects must have a qualified engineer
39.9certification on the technology and fuel
39.10source. Grantees shall provide reports at
39.11the request of the commissioner and must
39.12actively participate in the Agricultural
39.13Utilization Research Institute's Renewable
39.14Energy Roundtable. No later than February
39.151, 2009, the commissioner shall report on
39.16the projects funded under this appropriation
39.17to the house and senate committees with
39.18jurisdiction over agriculture finance. The
39.19commissioner's costs in administering the
39.20program may be paid from the appropriation.
39.21Any unencumbered balance does not cancel
39.22at the end of the first year and is available
39.23in the second year This appropriation is
39.24available until June 30, 2011.
39.25$200,000 the first year is for a grant to the
39.26Minnesota Turf Seed Council for basic
39.27and applied agronomic research on native
39.28plants, including plant breeding, nutrient
39.29management, pest management, disease
39.30management, yield, and viability. The grant
39.31recipient may subcontract with a qualified
39.32third party for some or all of the basic
39.33or applied research. The grant recipient
39.34must actively participate in the Agricultural
39.35Utilization Research Institute's Renewable
39.36Energy Roundtable and no later than
40.1February 1, 2009, must report to the house
40.2and senate committees with jurisdiction
40.3over agriculture finance. This is a onetime
40.4appropriation and is available until spent.
40.5$200,000 the first year is for a grant to a joint
40.6venture combined heat and power energy
40.7facility located in Scott or LeSueur County
40.8for the creation of a centrally located biomass
40.9fuel supply depot with the capability of
40.10unloading, processing, testing, scaling, and
40.11storing renewable biomass fuels. The grant
40.12must be matched by at least $3 of nonstate
40.13funds for every $1 of state funds. The grant
40.14recipient must actively participate in the
40.15Agricultural Utilization Research Institute's
40.16Renewable Energy Roundtable and no
40.17later than February 1, 2009, must report
40.18to the house and senate committees with
40.19jurisdiction over agriculture finance. This is
40.20a onetime appropriation and is available until
40.21spent.
40.22$300,000 the first year is for a grant to the
40.23Bois Forte Band of Chippewa for a feasibility
40.24study of a renewable energy biofuels
40.25demonstration facility on the Bois Forte
40.26Reservation in St. Louis and Koochiching
40.27Counties. The grant shall be used by the Bois
40.28Forte Band to conduct a detailed feasibility
40.29study of the economic and technical viability
40.30of developing a multistream renewable
40.31energy biofuels demonstration facility
40.32on Bois Forte Reservation land to utilize
40.33existing forest resources, woody biomass,
40.34and cellulosic material to produce biofuels or
40.35bioenergy. The grant recipient must actively
40.36participate in the Agricultural Utilization
41.1Research Institute's Renewable Energy
41.2Roundtable and no later than February 1,
41.32009, must report to the house and senate
41.4committees with jurisdiction over agriculture
41.5finance. This is a onetime appropriation and
41.6is available until spent.
41.7$300,000 the first year is for a grant to
41.8the White Earth Band of Chippewa for a
41.9feasibility study of a renewable energy
41.10biofuels production, research, and production
41.11facility on the White Earth Reservation in
41.12Mahnomen County. The grant must be used
41.13by the White Earth Band and the University
41.14of Minnesota to conduct a detailed feasibility
41.15study of the economic and technical viability
41.16of (1) developing a multistream renewable
41.17energy biofuels demonstration facility on
41.18White Earth Reservation land to utilize
41.19existing forest resources, woody biomass,
41.20and cellulosic material to produce biofuels or
41.21bioenergy, and (2) developing, harvesting,
41.22and marketing native prairie plants and seeds
41.23for bioenergy production. The grant recipient
41.24must actively participate in the Agricultural
41.25Utilization Research Institute's Renewable
41.26Energy Roundtable and no later than
41.27February 1, 2009, must report to the house
41.28and senate committees with jurisdiction
41.29over agriculture finance. This is a onetime
41.30appropriation and is available until spent.
41.31$200,000 the first year is for a grant to the Elk
41.32River Economic Development Authority for
41.33upfront engineering and a feasibility study
41.34of the Elk River renewable fuels facility.
41.35The facility must use a plasma gasification
41.36process to convert primarily cellulosic
42.1material, but may also use plastics and other
42.2components from municipal solid waste, as
42.3feedstock for the production of methanol
42.4for use in biodiesel production facilities.
42.5Any unencumbered balance in fiscal year
42.62008 does not cancel but is available for
42.7fiscal year 2009. Notwithstanding Minnesota
42.8Statutes, section 16A.285, the agency must
42.9not transfer this appropriation. The grant
42.10recipient must actively participate in the
42.11Agricultural Utilization Research Institute's
42.12Renewable Energy Roundtable and no
42.13later than February 1, 2009, must report
42.14to the house and senate committees with
42.15jurisdiction over agriculture finance. This is
42.16a onetime appropriation and is available until
42.17spent.
42.18$200,000 the first year is for a grant to
42.19Chisago County to conduct a detailed
42.20feasibility study of the economic and
42.21technical viability of developing a
42.22multistream renewable energy biofuels
42.23demonstration facility in Chisago, Isanti,
42.24or Pine County to utilize existing forest
42.25resources, woody biomass, and cellulosic
42.26material to produce biofuels or bioenergy.
42.27Chisago County may expend funds to Isanti
42.28and Pine Counties and the University of
42.29Minnesota for any costs incurred as part
42.30of the study. The feasibility study must
42.31consider the capacity of: (1) the seed bank
42.32at Wild River State Park to expand the
42.33existing prairie grass, woody biomass, and
42.34cellulosic material resources in Chisago,
42.35Isanti, and Pine Counties; (2) willing and
42.36interested landowners in Chisago, Isanti, and
43.1Pine Counties to grow cellulosic materials;
43.2and (3) the Minnesota Conservation Corps,
43.3the sentence to serve program, and other
43.4existing workforce programs in east central
43.5Minnesota to contribute labor to these efforts.
43.6The grant recipient must actively participate
43.7in the Agricultural Utilization Research
43.8Institute's Renewable Energy Roundtable and
43.9no later than February 1, 2009, must report
43.10to the house and senate committees with
43.11jurisdiction over agriculture finance. This is
43.12a onetime appropriation and is available until
43.13spent.

43.14    Sec. 7. Laws 2007, chapter 45, article 1, section 3, subdivision 5, as amended by Laws
43.152008, chapter 297, article 1, section 65, is amended to read:
43.16
43.17
Subd. 5. Administration and Financial
Assistance
7,338,000
6,751,000
43.18$1,005,000 the first year and $1,005,000
43.19the second year are for continuation of
43.20the dairy development and profitability
43.21enhancement and dairy business planning
43.22grant programs established under Laws 1997,
43.23chapter 216, section 7, subdivision 2, and
43.24Laws 2001, First Special Session chapter 2,
43.25section 9, subdivision 2 . The commissioner
43.26may allocate the available sums among
43.27permissible activities, including efforts to
43.28improve the quality of milk produced in the
43.29state in the proportions that the commissioner
43.30deems most beneficial to Minnesota's dairy
43.31farmers. The commissioner must submit a
43.32work plan detailing plans for expenditures
43.33under this program to the chairs of the
43.34house and senate committees dealing with
43.35agricultural policy and budget on or before
44.1the start of each fiscal year. If significant
44.2changes are made to the plans in the course
44.3of the year, the commissioner must notify the
44.4chairs.
44.5$50,000 the first year and $50,000 the
44.6second year are for the Northern Crops
44.7Institute. These appropriations may be spent
44.8to purchase equipment.
44.9$19,000 the first year and $19,000 the
44.10second year are for a grant to the Minnesota
44.11Livestock Breeders Association.
44.12$250,000 the first year and $250,000 the
44.13second year are for grants to the Minnesota
44.14Agricultural Education Leadership Council
44.15for programs of the council under Minnesota
44.16Statutes, chapter 41D.
44.17$600,000 the first year is for grants for
44.18fertilizer research as awarded by the
44.19Minnesota Agricultural Fertilizer Research
44.20and Education Council under Minnesota
44.21Statutes, section 18C.71. The amount
44.22available to the commissioner pursuant
44.23to Minnesota Statutes, section 18C.70,
44.24subdivision 2
, for administration of this
44.25activity is available until February 1, 2009,
44.26by which time the commissioner shall
44.27report to the house and senate committees
44.28with jurisdiction over agriculture finance.
44.29The report must include the progress and
44.30outcome of funded projects as well as the
44.31sentiment of the council concerning the need
44.32for additional research funded through an
44.33industry checkoff fee. The amount available
44.34for grants is available until June 30, 2011.
45.1$465,000 the first year and $465,000 the
45.2second year are for payments to county and
45.3district agricultural societies and associations
45.4under Minnesota Statutes, section 38.02,
45.5subdivision 1
. Aid payments to county and
45.6district agricultural societies and associations
45.7shall be disbursed not later than July 15 of
45.8each year. These payments are the amount of
45.9aid owed by the state for an annual fair held
45.10in the previous calendar year.
45.11$65,000 the first year and $65,000 the second
45.12year are for annual grants to the Minnesota
45.13Turf Seed Council for basic and applied
45.14research on the improved production of
45.15forage and turf seed related to new and
45.16improved varieties. The grant recipient may
45.17subcontract with a qualified third party for
45.18some or all of the basic and applied research.
45.19$500,000 the first year and $500,000 the
45.20second year are for grants to Second Harvest
45.21Heartland on behalf of Minnesota's six
45.22Second Harvest food banks for the purchase
45.23of milk for distribution to Minnesota's food
45.24shelves and other charitable organizations
45.25that are eligible to receive food from the food
45.26banks. Milk purchased under the grants must
45.27be acquired from Minnesota milk processors
45.28and based on low-cost bids. The milk must be
45.29allocated to each Second Harvest food bank
45.30serving Minnesota according to the formula
45.31used in the distribution of United States
45.32Department of Agriculture commodities
45.33under The Emergency Food Assistance
45.34Program (TEFAP). Second Harvest
45.35Heartland must submit quarterly reports
45.36to the commissioner on forms prescribed
46.1by the commissioner. The reports must
46.2include, but are not limited to, information
46.3on the expenditure of funds, the amount
46.4of milk purchased, and the organizations
46.5to which the milk was distributed. Second
46.6Harvest Heartland may enter into contracts
46.7or agreements with food banks for shared
46.8funding or reimbursement of the direct
46.9purchase of milk. Each food bank receiving
46.10money from this appropriation may use up to
46.11two percent of the grant for administrative
46.12expenses.
46.13$100,000 the first year and $100,000 the
46.14second year are for transfer to the Board of
46.15Trustees of the Minnesota State Colleges and
46.16Universities for mental health counseling
46.17support to farm families and business
46.18operators through farm business management
46.19programs at Central Lakes College and
46.20Ridgewater College.
46.21$18,000 the first year and $18,000 the
46.22second year are for grants to the Minnesota
46.23Horticultural Society.
46.24$50,000 is for a grant to the University of
46.25Minnesota, Department of Horticultural
46.26Science, Enology Laboratory, to upgrade
46.27and purchase instrumentation to allow
46.28rapid and accurate measurement of enology
46.29components. This is a onetime appropriation
46.30and is available until expended.

46.31    Sec. 8. Laws 2009, chapter 94, article 1, section 3, subdivision 5, is amended to read:
46.32
46.33
Subd. 5.Administration and Financial
Assistance
8,177,000
7,037,000
47.1
Appropriations by Fund
47.2
2010
2011
47.3
General
7,377,000
6,237,000
47.4
Agricultural
800,000
800,000
47.5$780,000 the first year and $755,000 the
47.6second year are for continuation of the dairy
47.7development and profitability enhancement
47.8and dairy business planning grant programs
47.9established under Laws 1997, chapter
47.10216, section 7, subdivision 2, and Laws
47.112001, First Special Session chapter 2,
47.12section 9, subdivision 2. The commissioner
47.13may allocate the available sums among
47.14permissible activities, including efforts to
47.15improve the quality of milk produced in the
47.16state in the proportions that the commissioner
47.17deems most beneficial to Minnesota's dairy
47.18farmers. The commissioner must submit a
47.19work plan detailing plans for expenditures
47.20under this program to the chairs of the house
47.21of representatives and senate committees
47.22dealing with agricultural policy and budget
47.23on or before the start of each fiscal year. If
47.24significant changes are made to the plans
47.25in the course of the year, the commissioner
47.26must notify the chairs.
47.27$50,000 the first year and $50,000 the
47.28second year are for the Northern Crops
47.29Institute. These appropriations may be spent
47.30to purchase equipment.
47.31$19,000 the first year and $19,000 the
47.32second year are for a grant to the Minnesota
47.33Livestock Breeders Association.
47.34$250,000 the first year and $250,000 the
47.35second year are for grants to the Minnesota
48.1Agricultural Education and Leadership
48.2Council for programs of the council under
48.3Minnesota Statutes, chapter 41D.
48.4$474,000 the first year and $474,000 the
48.5second year are for payments to county and
48.6district agricultural societies and associations
48.7under Minnesota Statutes, section 38.02,
48.8subdivision 1
. Aid payments to county and
48.9district agricultural societies and associations
48.10shall be disbursed no later than July 15 of
48.11each year. These payments are the amount of
48.12aid from the state for an annual fair held in
48.13the previous calendar year.
48.14$1,000 the first year and $1,000 the second
48.15year are for grants to the Minnesota State
48.16Poultry Association.
48.17$65,000 the first year and $65,000 the second
48.18year are for annual grants to the Minnesota
48.19Turf Seed Council for basic and applied
48.20research on the improved production of
48.21forage and turf seed related to new and
48.22improved varieties. The grant recipient may
48.23subcontract with a qualified third party for
48.24some or all of the basic and applied research.
48.25$50,000 the first year and $50,000 the
48.26second year are for annual grants to the
48.27Minnesota Turf Seed Council for basic
48.28and applied agronomic research on native
48.29plants, including plant breeding, nutrient
48.30management, pest management, disease
48.31management, yield, and viability. The grant
48.32recipient may subcontract with a qualified
48.33third party for some or all of the basic
48.34or applied research. The grant recipient
48.35must actively participate in the Agricultural
49.1Utilization Research Institute's Renewable
49.2Energy Roundtable and no later than
49.3February 1, 2011, must report to the house of
49.4representatives and senate committees with
49.5jurisdiction over agriculture finance.
49.6$500,000 the first year and $500,000 the
49.7second year are for grants to Second Harvest
49.8Heartland on behalf of Minnesota's six
49.9Second Harvest food banks for the purchase
49.10of milk for distribution to Minnesota's food
49.11shelves and other charitable organizations
49.12that are eligible to receive food from the food
49.13banks. Milk purchased under the grants must
49.14be acquired from Minnesota milk processors
49.15and based on low-cost bids. The milk must be
49.16allocated to each Second Harvest food bank
49.17serving Minnesota according to the formula
49.18used in the distribution of United States
49.19Department of Agriculture commodities
49.20under The Emergency Food Assistance
49.21Program (TEFAP). Second Harvest
49.22Heartland must submit quarterly reports
49.23to the commissioner on forms prescribed
49.24by the commissioner. The reports must
49.25include, but are not limited to, information
49.26on the expenditure of funds, the amount
49.27of milk purchased, and the organizations
49.28to which the milk was distributed. Second
49.29Harvest Heartland may enter into contracts
49.30or agreements with food banks for shared
49.31funding or reimbursement of the direct
49.32purchase of milk. Each food bank receiving
49.33money from this appropriation may use up to
49.34two percent of the grant for administrative
49.35expenses.
50.1$1,000,000 the first year is for the agricultural
50.2growth, research, and innovation program
50.3in Minnesota Statutes, section 41A.12.
50.4Priority must be given to livestock programs
50.5under Minnesota Statutes, section 17.118.
50.6Priority for livestock grants shall be given
50.7to persons who are beginning livestock
50.8producers and livestock producers who are
50.9rebuilding after a disaster that was due to
50.10natural or other unintended conditions. The
50.11commissioner may use up to 4.5 percent
50.12of this appropriation for costs incurred to
50.13administer the program. Any unencumbered
50.14balance does not cancel at the end of the first
50.15year and is available in the second year.
50.16$100,000 the first year and $100,000 the
50.17second year are for transfer to the Board of
50.18Trustees of the Minnesota State Colleges and
50.19Universities for mental health counseling
50.20support to farm families and business
50.21operators through farm business management
50.22programs at Central Lakes College and
50.23Ridgewater College.
50.24$18,000 the first year and $18,000 the
50.25second year are for grants to the Minnesota
50.26Horticultural Society.
50.27Notwithstanding Minnesota Statutes,
50.28section 18C.131, $800,000 the first year
50.29and $800,000 the second year are from the
50.30fertilizer account in the agricultural fund
50.31for grants for fertilizer research as awarded
50.32by the Minnesota Agricultural Fertilizer
50.33Research and Education Council under
50.34Minnesota Statutes, section 18C.71. The
50.35amount appropriated in either fiscal year must
51.1not exceed 57 percent of the inspection fee
51.2revenue collected under Minnesota Statutes,
51.3section 18C.425, subdivision 6, during the
51.4previous fiscal year. No later than February
51.51, 2011, the commissioner shall report to
51.6the legislative committees with jurisdiction
51.7over agriculture finance. The report must
51.8include the progress and outcome of funded
51.9projects as well as the sentiment of the
51.10council concerning the need for additional
51.11research funds. The appropriation for the
51.12first year is available until June 30, 2013,
51.13and the appropriation for the second year is
51.14available until June 30, 2014.
51.15$60,000 the first year is for a transfer to the
51.16University of Minnesota Extension Service
51.17for farm-to-school grants to school districts
51.18in Minneapolis, Moorhead, White Earth, and
51.19Willmar.
51.20$30,000 is for star farms program
51.21development. The commissioner, in
51.22consultation with other state and local
51.23agencies, farm groups, conservation
51.24groups, legislators, and other interested
51.25persons, shall develop a proposal for a star
51.26farms program. By January 15, 2010, the
51.27commissioner shall submit the proposal to
51.28the legislative committees and divisions
51.29with jurisdiction over agriculture and
51.30environmental policy and finance. This is a
51.31onetime appropriation. * (The preceding
51.32paragraph beginning "$30,000 is for star
51.33farms program" was indicated as vetoed
51.34by the governor.)
52.1$25,000 the first year is for the administration
52.2of the Feeding Minnesota Task Force, under
52.3new Minnesota Statutes, section 31.97. This
52.4is a onetime appropriation.

52.5ARTICLE 5
52.6VETERANS AFFAIRS

52.7
Section 1. VETERANS AFFAIRS.
52.8The sums shown in the columns marked "Appropriations" are added to, or if shown
52.9in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 3, to
52.10the agencies and for the purposes specified in this article. The appropriations are from the
52.11general fund, or another named fund, and are available for the fiscal years indicated for
52.12each purpose. The figures "2010" and "2011" used in this article mean that the addition
52.13to or subtraction from the appropriation listed under them is available for the fiscal year
52.14ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
52.15reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
52.16day following final enactment.
52.17
APPROPRIATIONS
52.18
Available for the Year
52.19
Ending June 30
52.20
2010
2011

52.21
Sec. 2. VETERANS AFFAIRS
52.22
Subdivision 1.Total Appropriation
$
-0-
$
100,000
52.23The amounts that may be spent for each
52.24purpose are specified in the following
52.25subdivisions.
52.26
Subd. 2.Veterans Services
-0-
100,000
52.27$100,000 in fiscal year 2011 is for
52.28compensation for honor guards at the
52.29funerals of veterans in accordance with the
52.30program established in Minnesota Statutes,
52.31section 197.231.

52.32    Sec. 3. EFFECTIVE DATE.
52.33This article is effective the day following final enactment.

53.1ARTICLE 6
53.2ECONOMIC DEVELOPMENT

53.3
Section 1. SUMMARY OF APPROPRIATIONS.
53.4The amounts shown in this section summarize direct appropriations, by fund, made
53.5in this article.
53.6
2010
2011
Total
53.7
General
$
(4,155,000)
$
(11,665,000)
$
(15,820,000)
53.8
Petroleum Tank Cleanup
(25,000)
(32,000)
(57,000)
53.9
Total
$
(4,180,000)
$
(11,697,000)
$
(15,877,000)

53.10
Sec. 2. APPROPRIATIONS.
53.11The sums shown in the columns marked "Appropriations" are added to or, if shown
53.12in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1,
53.13unless otherwise specified, to the agencies and for the purposes specified in this article.
53.14The appropriations are from the general fund, or another named fund, and are available for
53.15the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this
53.16article mean that the addition to or subtraction from the appropriation listed under them
53.17are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
53.18Supplemental appropriations and reductions to appropriations for the fiscal year ending
53.19June 30, 2010, are effective the day following final enactment.
53.20
APPROPRIATIONS
53.21
Available for the Year
53.22
Ending June 30
53.23
2010
2011

53.24
53.25
Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
53.26
Subdivision 1.Total Appropriation
$
(1,044,000)
$
(2,270,000)
53.27The appropriation reductions for each
53.28purpose are specified in the following
53.29subdivisions.
53.30
53.31
Subd. 2.Business and Community
Development
(366,000)
(588,000)
53.32(a) $35,000 in 2011 is from the appropriation
53.33for a grant to Women Venture.
54.1(b) $20,000 in 2011 is from the appropriation
54.2for a grant to the Metropolitan Economic
54.3Development Association.
54.4(c) $75,000 in 2011 is from the appropriation
54.5for a grant to BioBusiness Alliance of
54.6Minnesota.
54.7(d) $15,000 in 2011 is from the appropriation
54.8for a grant to the Minnesota Inventors
54.9Congress.
54.10(e) $25,000 in 2010 and $25,000 in 2011
54.11are from the appropriation for the Office of
54.12Science and Technology.
54.13(f) $75,000 in 2011 is from the appropriation
54.14for a grant to Enterprise Minnesota, Inc.
54.15(g) The general fund base for business and
54.16community development is $6,653,000 in
54.17fiscal year 2012 and $6,653,000 in fiscal year
54.182013.
54.19
Subd. 3.Workforce Development
(648,000)
(1,652,000)
54.20(a) $145,000 in 2010 and $145,000 in
54.212011 are from the appropriation for the
54.22Minnesota job skills partnership program
54.23under Minnesota Statutes, sections 116L.01
54.24to 116L.17.
54.25(b) $193,000 in 2010 and $195,000 in 2011
54.26are from the appropriation for state services
54.27for the blind activities.
54.28(c) $159,000 in 2010 and $161,000 in 2011
54.29are from the appropriation for grants to
54.30centers for independent living.
54.31(d) $60,000 in 2011 is from the appropriation
54.32to Twin Cities RISE! for a grant under
54.33Minnesota Statutes, section 166J.8747.
55.1(e) $25,000 in 2011 is from the appropriation
55.2for a grant to Northern Connections in
55.3Perham.
55.4(f) $25,000 in 2011 is from the appropriation
55.5for a grant to Advocating Change Together.
55.6(g) $22,000 in 2010 and $708,000 in 2011
55.7are from the appropriation for extended
55.8employment services under Minnesota
55.9Statutes, section 268A.15. Notwithstanding
55.10Minnesota Rules, parts 3300.2030 to
55.113300.2055, the commissioner may adjust
55.12contracts with eligible extended employment
55.13providers in order to achieve required
55.14reductions through June 30, 2011. The
55.15general fund base for extended employment
55.16services is $5,137,000 in fiscal year 2012 and
55.17$5,137,000 in fiscal year 2013.
55.18(h) $3,000 in 2010 and $125,000 in 2011 are
55.19from the appropriation to supplement funds
55.20paid for wage incentives for the community
55.21support fund established in Minnesota Rules,
55.22part 3300.2045.
55.23(i) $50,000 in 2011 is from the appropriation
55.24for grants to Minnesota Diversified
55.25Industries, Inc. The general fund base for
55.26Minnesota Diversified Industries, Inc. is
55.27$50,000 in fiscal year 2012 and $50,000 in
55.28fiscal year 2013.
55.29(j) $111,000 in 2010 and $113,000 in 2011
55.30are from the appropriation for grants to
55.31programs that provide employment support
55.32services to persons with mental illness under
55.33Minnesota Statutes, sections 268A.13 and
55.34268A.14. $2,000 in each year is from the
55.35appropriation for administrative expenses.
56.1(k) $25,000 in 2011 is from the appropriation
56.2for a grant under Minnesota Statutes, section
56.3268A.03, to Rise, Inc.
56.4(l) $20,000 in 2011 is from the appropriation
56.5for a grant to Lifetrack Resources.
56.6(m) $15,000 in 2010 is from the appropriation
56.7for a grant to Lutheran Social Service of
56.8Minnesota.
56.9(n) The general fund base for workforce
56.10development is $28,729,000 in fiscal year
56.112012 and $28,729,000 in fiscal year 2013.
56.12
Subd. 4.State-funded Administration
(30,000)
(30,000)
56.13The general fund base for state-funded
56.14administration is $2,396,000 in fiscal year
56.152012 and $2,396,000 in fiscal year 2013.
56.16
Subd. 5.Transfers and Cancellations
56.17(a) $367,000 in 2010 and $367,000 in
56.182011 are transferred from the contaminated
56.19cleanup grants appropriation in the petroleum
56.20tank release cleanup fund under Minnesota
56.21Statutes, section 115C.08, subdivision 4, to
56.22the general fund.
56.23(b) $80,000 in 2010 is transferred from the
56.24unemployment insurance state administration
56.25account in the special revenue fund under
56.26Minnesota Statutes, section 268.196,
56.27subdivision 1, to the general fund.
56.28(c) $160,000 in 2010 is transferred from
56.29the capital access program account in the
56.30special revenue fund under Minnesota
56.31Statutes, section 116J.876, subdivision 4, to
56.32the general fund.
56.33(d) $5,000,000 in 2010 is transferred from
56.34the Minnesota mineral 21st century fund
57.1under Minnesota Statutes, section 116J.423,
57.2subdivision 1, to the general fund.
57.3(e) The remaining balance from the Laws
57.42007, chapter 135, article 1, section 3,
57.5appropriation for a grant to Le Sueur County
57.6is canceled.
57.7(f) The remaining balance from the Laws
57.82008, chapter 358, article 5, section 4,
57.9subdivision 3, appropriation for Section 125
57.10Employer Incentives is canceled.

57.11
Sec. 4. PUBLIC FACILITIES AUTHORITY
$
(11,000)
$
(7,000)
57.12The reduction is from the appropriation
57.13for small community wastewater treatment
57.14program under Minnesota Statutes, chapter
57.15446A.

57.16
Sec. 5. EXPLORE MINNESOTA TOURISM
$
(938,000)
$
(672,000)
57.17(a) $700,000 in 2010 is from the appropriation
57.18for a grant to the Minnesota Film and TV
57.19Board for the film jobs production program
57.20under Minnesota Statutes, section 116U.26.
57.21(b) $325,000 in 2011 is from the operating
57.22appropriation for the Minnesota Film and
57.23TV Board.

57.24
Sec. 6. HOUSING FINANCE AGENCY
$
(2,061,000)
$
(2,603,000)
57.25(a) $2,061,000 in 2010 and $1,603,000 in
57.262011 are from the appropriation for the
57.27affordable rental investment fund program
57.28under Minnesota Statutes, section 462A.21,
57.29subdivision 8b.
57.30(b) $1,000,000 in 2011 is from the
57.31appropriation for the housing rehabilitation
57.32program under Minnesota Statutes, section
58.1462A.05, subdivision 14, for rental housing
58.2developments.
58.3(c) In 2010, the Housing Finance Agency
58.4shall transfer $2,061,000 from the affordable
58.5rental investment fund program in the
58.6housing development fund, to the general
58.7fund.

58.8
58.9
Sec. 7. DEPARTMENT OF LABOR AND
INDUSTRY
$
(16,000)
$
(26,000)
58.10This reduction is from the general fund
58.11appropriation for labor standards and
58.12apprenticeship.

58.13
58.14
Sec. 8. BUREAU OF MEDIATION
SERVICES
$
(31,000)
$
(53,000)
58.15(a) $27,000 in 2010 and $47,000 in 2011
58.16are from the appropriation for mediation
58.17services.
58.18(b) $4,000 in 2010 and $6,000 in 2011 are
58.19from the appropriation for labor management
58.20cooperation grants.

58.21
58.22
Sec. 9. MINNESOTA HISTORICAL
SOCIETY
58.23
Subdivision 1.Total Appropriation
$
(217,000)
$
(501,000)
58.24The appropriation reductions for each
58.25purpose are specified in the following
58.26subdivisions.
58.27
Subd. 2.Education and Outreach
(124,000)
(286,000)
58.28
Subd. 3.Preservation and Access
(93,000)
(215,000)

58.29
Sec. 10. BOARD OF THE ARTS
58.30
Subdivision 1.Total Appropriation
$
-0-
$
(2,875,000)
59.1The appropriation reductions for each
59.2purpose are specified in the following
59.3subdivisions.
59.4
Subd. 2.Operations and Services
-0-
(217,000)
59.5The base for operations and services in fiscal
59.6year 2012 is $217,000. The base in fiscal
59.7year 2013 is $0.
59.8
Subd. 3.Grant Programs
-0-
(1,839,000)
59.9The base for grant programs in fiscal year
59.102012 is $1,838,000. The base in fiscal year
59.112013 is $0.
59.12
Subd. 4.Regional Arts Councils
-0-
(819,000)
59.13The base for regional arts councils in fiscal
59.14year 2012 is $819,000. The base in fiscal
59.15year 2013 is $0.

59.16
59.17
Sec. 11. MINNESOTA HUMANITIES
CENTER
$
-0-
$
(250,000)

59.18
Sec. 12. PUBLIC BROADCASTING
$
-0-
$
(2,015,000)
59.19(a) The appropriation reductions under
59.20this section are from the commissioner of
59.21administration for the purposes specified.
59.22(b) $1,161,000 in 2011 is from the
59.23appropriation for matching grants for public
59.24television.
59.25(c) $200,000 in 2011 is from the appropriation
59.26for public television equipment grants.
59.27(d) $17,000 in 2011 is from the appropriation
59.28for grants to Twin Cities regional cable
59.29channels.
59.30(e) $287,000 in 2011 is from the appropriation
59.31for community service grants to public
59.32educational radio stations.
60.1(f) $100,000 in 2011 is from the appropriation
60.2for equipment grants to public educational
60.3radio stations.
60.4(g) $250,000 in 2011 is for equipment grants
60.5to Minnesota Public Radio, Inc.

60.6
Sec. 13. DEPARTMENT OF COMMERCE
60.7
Subdivision 1.Total Appropriation
$
185,000
$
(354,000)
60.8
Appropriations by Fund
60.9
2010
2011
60.10
General
210,000
(322,000)
60.11
Petroleum Cleanup
(25,000)
(32,000)
60.12The amounts that may be spent for each
60.13purpose are specified in the following
60.14subdivisions.
60.15
Subd. 2.Financial Institutions
400,000
-0-
60.16This is a onetime appropriation for
60.17implementation of the federal SAFE Act.
60.18
60.19
Subd. 3.Petroleum Tank Release Cleanup
Board
(25,000)
(32,000)
60.20Open appropriations established under
60.21Minnesota Statutes, sections 16A.127,
60.22115.10, 115C.09, and 115C.094, from
60.23the petroleum tank fund are reduced by
60.24$544,000. Prior to June 30, 2010, the
60.25commissioner of commerce shall transfer
60.26$569,000 from the unexpended balance
60.27of the petroleum tank fund established in
60.28Minnesota Statutes, section 115C.08, to the
60.29general fund.
60.30Prior to June 30, 2011, the commissioner
60.31of commerce shall transfer $32,000 from
60.32the unexpended balance of the petroleum
60.33tank fund established in Minnesota Statutes,
60.34section 115C.08, to the general fund.
61.1
Subd. 4.Administrative Services
(66,000)
(126,000)
61.2
Subd. 5.Market Assurance
(124,000)
(196,000)
61.3
Subd. 6.Transfers
61.4Prior to June 30, 2010, the commissioner
61.5of commerce shall transfer $34,000 from
61.6the unexpended balance of the license
61.7technology surcharge account established
61.8in Minnesota Statutes, section 45.24, to the
61.9general fund.
61.10Prior to June 30, 2011, the commissioner
61.11of commerce shall transfer $52,000 from
61.12the unexpended balance of the license
61.13technology surcharge account established
61.14in Minnesota Statutes, section 45.24, to the
61.15general fund.
61.16Prior to June 30, 2010, the commissioner of
61.17commerce shall transfer $64,000 from the
61.18unexpended balance of the insurance fraud
61.19prevention account established in Minnesota
61.20Statutes, section 45.0135, to the general fund.
61.21Prior to June 30, 2011, the commissioner of
61.22commerce shall transfer $48,000 from the
61.23unexpended balance of the insurance fraud
61.24prevention account established in Minnesota
61.25Statutes, section 45.0135, to the general fund.
61.26Prior to June 30, 2010, the commissioner of
61.27commerce shall transfer $133,000 from the
61.28unexpended balance of the automobile theft
61.29prevention account established in Minnesota
61.30Statutes, section 168A.40, to the general
61.31fund.
61.32Prior to June 30, 2011, the commissioner of
61.33commerce shall transfer $111,000 from the
61.34unexpended balance of the automobile theft
62.1prevention account established in Minnesota
62.2Statutes, section 168A.40, to the general
62.3fund.
62.4Prior to June 30, 2010, the commissioner
62.5of commerce shall transfer $49,000 from
62.6the unexpended balance of the real estate
62.7education, research and recovery fund
62.8established in Minnesota Statutes, section
62.982.43, to the general fund.
62.10Prior to June 30, 2011, the commissioner
62.11of commerce shall transfer $5,000 from
62.12the unexpended balance of the real estate
62.13education, research and recovery fund
62.14established in Minnesota Statutes, section
62.1582.43, to the general fund.
62.16Prior to June 30, 2010, the commissioner
62.17of commerce shall transfer $7,000 from
62.18the unexpended balance of the consumer
62.19education account established in Minnesota
62.20Statutes, section 58.10, to the general fund.
62.21Prior to June 30, 2010, the commissioner
62.22of commerce shall transfer $4,000 from the
62.23unexpended balance of the HMO regulation
62.24account established under Minnesota
62.25Statutes, section 471.59, to the general fund.
62.26Prior to June 30, 2011, the commissioner
62.27of commerce shall transfer $9,000 from the
62.28unexpended balance of the HMO regulation
62.29account established under Minnesota
62.30Statutes, section 471.59, to the general fund.

62.31
Sec. 14. BOARD OF ACCOUNTANCY
$
(10,000)
$
(15,000)

63.1
63.2
63.3
63.4
Sec. 15. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
(17,000)
$
(24,000)

63.5
63.6
Sec. 16. BOARD OF COSMETOLOGIST
EXAMINERS
$
(13,000)
$
(20,000)

63.7
Sec. 17. BOARD OF BARBER EXAMINERS
$
(3,000)
$
(6,000)

63.8
63.9
Sec. 18. COMBATIVE SPORTS
COMMISSION
$
(4,000)
$
(6,000)

63.10
Sec. 19. TRANSFER OF FUNDS
63.11Prior to June 30, 2010, the commissioner
63.12of Iron Range Resources shall transfer
63.13$30,000,000 from the Douglas J. Johnson
63.14Economic Protection Trust to the general
63.15fund. This is a onetime transfer.

63.16    Sec. 20. Minnesota Statutes 2009 Supplement, section 45.30, subdivision 6, is
63.17amended to read:
63.18    Subd. 6. Course approval. (a) Courses must be approved by the commissioner in
63.19advance. A course that is required by federal criteria or a reciprocity agreement to receive
63.20a substantive review will be approved or disapproved on the basis of its compliance with
63.21the provisions of laws and rules relating to the appropriate industry. At the commissioner's
63.22discretion, a course that is not required by federal criteria or a reciprocity agreement to
63.23receive a substantive review may be approved based on a qualified provider's certification
63.24on a form specified by the commissioner that the course complies with the provisions of
63.25this chapter and the laws and rules relating to the appropriate industry. For the purposes
63.26of this section, a "qualified provider" is one of the following: (1) a degree-granting
63.27institution of higher learning located within this state; (2) a private school licensed by the
63.28Minnesota Office of Higher Education; or (3) when conducting courses for its members, a
63.29bona fide trade association that staffs and maintains in this state a physical location that
63.30contains course and student records and that has done so for not less than three years.
63.31The commissioner may review any approved course and may cancel its approval with
63.32regard to all future offerings. The commissioner must make the final determination as to
64.1accreditation and assignment of credit hours for courses. Courses must be at least one hour
64.2in length, except courses for real estate appraisers must be at least two hours in length.
64.3Individuals wishing to receive credit for continuing education courses that have not
64.4been previously approved may submit the course information for approval. Courses
64.5must be in compliance with the laws and rules governing the types of courses that will
64.6and will not be approved.
64.7Approval will not include time spent on meals or other unrelated activities.
64.8(b) Courses must be submitted at least 30 days before the initial proposed course
64.9offering.
64.10(c) Approval must be granted for a subsequent offering of identical continuing
64.11education courses without requiring a new application. The commissioner must deny
64.12future offerings of courses if they are found not to be in compliance with the laws relating
64.13to course approval.
64.14(d) When either the content of an approved course or its method of instruction
64.15changes, the course is no longer approved for license education credit. A new application
64.16must be submitted for the changed course if the education provider intends to offer it for
64.17license education credit.

64.18    Sec. 21. Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is
64.19amended to read:
64.20    Subd. 2. Application contents. (a) The application must contain the name and
64.21complete business address or addresses of the license applicant. The license applicant
64.22must be a partnership, limited liability partnership, association, limited liability company,
64.23corporation, or other form of business organization, and the application must contain the
64.24names and complete business addresses of each partner, member, director, and principal
64.25officer. The application must also include a description of the activities of the license
64.26applicant, in the detail and for the periods the commissioner may require.
64.27    (b) A residential mortgage originator applicant must submit one of the following:
64.28    (1) evidence which shows, to the commissioner's satisfaction, that either the federal
64.29Department of Housing and Urban Development or the Federal National Mortgage
64.30Association has approved the residential mortgage originator applicant as a mortgagee;
64.31    (2) a surety bond or irrevocable letter of credit in the amount of not less than
64.32$50,000 in a form approved by the commissioner, issued by an insurance company or bank
64.33authorized to do so in this state. The bond or irrevocable letter of credit must be available
64.34for the recovery of expenses, fines, and fees levied by the commissioner under this chapter
64.35and for losses incurred by borrowers. The bond or letter of credit must be submitted with
65.1the license application, and evidence of continued coverage must be submitted with each
65.2renewal. Any change in the bond or letter of credit must be submitted for approval by the
65.3commissioner within ten days of its execution; or
65.4    (3) a copy of the residential mortgage originator applicant's most recent audited
65.5financial statement, including balance sheet, statement of income or loss, statements of
65.6changes in shareholder equity, and statement of changes in financial position. Financial
65.7statements must be as of a date within 12 months of the date of application. a surety bond
65.8that meets the requirements of section 58.08, subdivision 1a.
65.9    (c) The application must also include all of the following:
65.10    (1) an affirmation under oath that the applicant:
65.11    (i) is in compliance with the requirements of section 58.125;
65.12    (ii) will maintain a perpetual roster of individuals employed as residential mortgage
65.13originators, including employees and independent contractors, which includes the dates
65.14that mandatory testing, initial education, and continuing education were completed. In
65.15addition, the roster must be made available to the commissioner on demand, within three
65.16business days of the commissioner's request;
65.17    (iii) (ii) will advise the commissioner of any material changes to the information
65.18submitted in the most recent application within ten days of the change;
65.19    (iv) (iii) will advise the commissioner in writing immediately of any bankruptcy
65.20petitions filed against or by the applicant or licensee;
65.21    (v) (iv) will maintain at all times either a net worth, net of intangibles, of at least
65.22$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000
65.23$100,000;
65.24    (vi) (v) complies with federal and state tax laws; and
65.25    (vii) (vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed
65.26property law;
65.27    (2) information as to the mortgage lending, servicing, or brokering experience of the
65.28applicant and persons in control of the applicant;
65.29    (3) information as to criminal convictions, excluding traffic violations, of persons in
65.30control of the license applicant;
65.31    (4) whether a court of competent jurisdiction has found that the applicant or persons
65.32in control of the applicant have engaged in conduct evidencing gross negligence, fraud,
65.33misrepresentation, or deceit in performing an act for which a license is required under
65.34this chapter;
65.35    (5) whether the applicant or persons in control of the applicant have been the subject
65.36of: an order of suspension or revocation, cease and desist order, or injunctive order, or
66.1order barring involvement in an industry or profession issued by this or another state or
66.2federal regulatory agency or by the Secretary of Housing and Urban Development within
66.3the ten-year period immediately preceding submission of the application; and
66.4    (6) other information required by the commissioner.

66.5    Sec. 22. [58A.01] TITLE.
66.6This chapter may be cited as the "Minnesota Secure and Fair Enforcement for
66.7Mortgage Licensing Act of 2009" or "Minnesota S.A.F.E. Mortgage Licensing Act of
66.82009."

66.9    Sec. 23. [58A.02] DEFINITIONS.
66.10    Subdivision 1. Application. For purposes of this chapter, the definitions in
66.11subdivisions 2 to 16 have the meanings given them.
66.12    Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce.
66.13    Subd. 3. Depository institution. "Depository institution" has the meaning given in
66.14United States Code, title 12, section 1813, and includes a credit union.
66.15    Subd. 4. Federal banking agencies. "Federal banking agencies" means the Board
66.16of Governors of the Federal Reserve System, the comptroller of the currency, the director
66.17of the Office of Thrift Supervision, the National Credit Union Administration, and the
66.18Federal Deposit Insurance Corporation.
66.19    Subd. 5. Immediate family member. "Immediate family member" means a spouse,
66.20child, sibling, a parent, grandparent, or grandchild. This includes stepparents, stepchildren,
66.21stepsiblings, and adoptive relationships.
66.22    Subd. 6. Individual. "Individual" means a natural person.
66.23    Subd. 7. Loan processor or underwriter. "Loan processor or underwriter" means
66.24an individual who performs clerical or support duties as an employee at the direction
66.25of and subject to the supervision and instruction of a person licensed or exempt from
66.26licensing under chapter 58. For purposes of this subdivision, the term "clerical or support
66.27duties" may include after the receipt of an application:
66.28(1) the receipt, collection, distribution, and analysis of information common for the
66.29processing or underwriting of a residential mortgage loan; and
66.30(2) communicating with a consumer to obtain the information necessary for the
66.31processing or underwriting of a loan, to the extent that the communication does not include
66.32offering or negotiating loan rates or terms, or counseling consumers about residential
66.33mortgage loan rates or terms.
66.34    Subd. 8. Mortgage loan originator. "Mortgage loan originator":
67.1(1) means an individual who for compensation or gain or in the expectation of
67.2compensation or gain:
67.3(i) takes a residential mortgage loan application; or
67.4(ii) offers or negotiates terms of a residential mortgage loan;
67.5(2) does not include an individual engaged solely as a loan processor or underwriter
67.6except as otherwise provided in section 58A.03, subdivision 3;
67.7(3) does not include a person or entity that only performs real estate brokerage
67.8activities and is licensed or registered according to Minnesota law, unless the person or
67.9entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or
67.10by an agent of the lender, mortgage broker, or other mortgage loan originator; and
67.11(4) does not include a person or entity solely involved in extensions of credit relating
67.12to timeshare plans, as that term is defined in United States Code, title 11, section 101(53D).
67.13    Subd. 9. Nationwide Mortgage Licensing System and Registry. "Nationwide
67.14Mortgage Licensing System and Registry" means a mortgage licensing system developed
67.15and maintained by the Conference of State Bank Supervisors and the American
67.16Association of Residential Mortgage Regulators for the licensing and registration of
67.17licensed mortgage loan originators.
67.18    Subd. 10. Nontraditional mortgage product. "Nontraditional mortgage product"
67.19means a mortgage product other than a 30-year fixed rate mortgage loan.
67.20    Subd. 11. Person. "Person" means a natural person, corporation, company, limited
67.21liability company, partnership, or association.
67.22    Subd. 12. Real estate brokerage activity. "Real estate brokerage activity" means
67.23an activity that involves offering or providing real estate brokerage services to the public,
67.24including:
67.25(1) acting as a real estate agent or real estate broker for a buyer, seller, lessor,
67.26or lessee of real property;
67.27(2) bringing together parties interested in the sale, purchase, lease, rental, or
67.28exchange of real property;
67.29(3) negotiating, on behalf of a party, a portion of a contract relating to the sale,
67.30purchase, lease, rental, or exchange of real property other than in connection with
67.31providing financing with respect to the transaction;
67.32(4) engaging in an activity for which a person engaged in the activity is required to
67.33be registered or licensed as a real estate agent or real estate broker under any applicable
67.34law; and
67.35(5) offering to engage in any activity, or act in any capacity, described in clause
67.36(1), (2), (3), or (4).
68.1    Subd. 13. Registered mortgage loan originator. "Registered mortgage loan
68.2originator" means an individual who:
68.3(1) meets the definition of mortgage loan originator and is an employee of:
68.4(i) a depository institution;
68.5(ii) a subsidiary that is owned and controlled by a depository institution and
68.6regulated by a federal banking agency; or
68.7(iii) an institution regulated by the Farm Credit Administration; and
68.8(2) is registered with, and maintains a unique identifier through, the Nationwide
68.9Mortgage Licensing System and Registry.
68.10    Subd. 14. Residential mortgage loan. "Residential mortgage loan" means a loan
68.11primarily for personal, family, or household use that is secured by a mortgage, deed of
68.12trust, or other equivalent consensual security interest on a dwelling, as defined in United
68.13States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is
68.14constructed or intended to be constructed.
68.15    Subd. 15. Residential real estate. "Residential real estate" means real property
68.16located in Minnesota, upon which a dwelling is constructed or is intended to be
68.17constructed.
68.18    Subd. 16. Unique identifier. "Unique identifier" means a number or other identifier
68.19assigned by protocols established by the Nationwide Mortgage Licensing System and
68.20Registry.

68.21    Sec. 24. [58A.03] LICENSE AND REGISTRATION REQUIRED.
68.22    Subdivision 1. Generally. An individual, unless specifically exempted from this
68.23chapter under subdivision 2, shall not engage in the business of a mortgage loan originator
68.24with respect to a dwelling located in this state without first obtaining and maintaining a
68.25license under this chapter. An individual may not engage in the mortgage loan business
68.26unless the individual is employed and supervised by an entity which is either licensed
68.27or exempt from licensing under chapter 58. A licensed mortgage loan originator must
68.28register with and maintain a valid unique identifier issued by the Nationwide Mortgage
68.29Licensing System and Registry.
68.30    Subd. 2. Exemptions. The following are exempt from this chapter:
68.31(1) a registered mortgage loan originator, when acting for an entity described in
68.32section 58A.02, subdivision 13, clause (1);
68.33(2) an individual who offers or negotiates terms of a residential mortgage loan with
68.34or on behalf of an immediate family member of the individual;
69.1(3) an individual who offers or negotiates terms of a residential mortgage loan
69.2secured by a dwelling that served as the individual's residence; and
69.3(4) a licensed attorney who negotiates the terms of a residential mortgage loan
69.4on behalf of a client as an ancillary matter to the attorney's representation of the client,
69.5unless the attorney is compensated by a lender, a mortgage broker, or other mortgage
69.6loan originator or by any agent of the lender, mortgage broker, or other mortgage loan
69.7originator.
69.8    Subd. 3. Independent contractor loan processors or underwriters. A loan
69.9processor or underwriter who is an independent contractor may not engage in the activities
69.10of a loan processor or underwriter unless the independent contractor loan processor
69.11or underwriter obtains and maintains a license under subdivision 1. An independent
69.12contractor loan processor or underwriter licensed as a mortgage loan originator must have
69.13and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing
69.14System and Registry.
69.15EFFECTIVE DATE.In order to facilitate an orderly transition to licensing and
69.16minimize disruption in the mortgage marketplace, the effective date for subdivision 1
69.17is July 31, 2010, or a later date approved by the Secretary of the U.S. Department of
69.18Housing and Urban Development, under the authority granted in Public Law 110-289,
69.19section 1508(a).

69.20    Sec. 25. [58A.04] STATE LICENSE AND REGISTRATION APPLICATION
69.21AND ISSUANCE.
69.22    Subdivision 1. Application form. An applicant for a license shall apply in a form
69.23as prescribed by the commissioner. The form must contain content as set forth by rule,
69.24instruction, or procedure of the commissioner and may be changed or updated as necessary
69.25by the commissioner in order to carry out the purposes of this chapter.
69.26    Subd. 2. Commissioner may establish relationships or contracts. In order
69.27to fulfill the purposes of this chapter, the commissioner is authorized to establish
69.28relationships or contracts with the Nationwide Mortgage Licensing System and Registry
69.29or other entities designated by the Nationwide Mortgage Licensing System and Registry to
69.30collect and maintain records and process transaction fees or other fees related to licensees
69.31or other persons subject to this chapter.
69.32    Subd. 3. Waive or modify requirements. For the purpose of participating in the
69.33Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to
69.34waive or modify, in whole or in part, by rule or order, any or all of the requirements of
70.1this chapter and to establish new requirements as reasonably necessary to participate in
70.2the Nationwide Mortgage Licensing System and Registry.
70.3    Subd. 4. Background checks. In connection with an application for licensing as a
70.4mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide
70.5Mortgage Licensing System and Registry information concerning the applicant's identity,
70.6including:
70.7(1) fingerprints for submission to the Federal Bureau of Investigation, and a
70.8governmental agency or entity authorized to receive the information for a state, national,
70.9and international criminal history background check; and
70.10(2) personal history and experience in a form prescribed by the Nationwide
70.11Mortgage Licensing System and Registry, including the submission of authorization for
70.12the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
70.13(i) an independent credit report obtained from a consumer reporting agency
70.14described in United States Code, title 15, section 1681a(p); and
70.15(ii) information related to administrative, civil, or criminal findings by a
70.16governmental jurisdiction.
70.17    Subd. 5. Agent for purposes of requesting and distributing criminal
70.18information. For the purposes of this section and in order to reduce the points of
70.19contact which the Federal Bureau of Investigation may have to maintain for purposes of
70.20subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage
70.21Licensing System and Registry as a channeling agent for requesting information from and
70.22distributing information to the Department of Justice or any governmental agency.
70.23    Subd. 6. Agent for purposes of requesting and distributing noncriminal
70.24information. For the purposes of this section and in order to reduce the points of contact
70.25which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i)
70.26and (ii), the commissioner may use the Nationwide Mortgage Licensing System and
70.27Registry as a channeling agent for requesting and distributing information to and from any
70.28source so directed by the commissioner.

70.29    Sec. 26. [58A.05] ISSUANCE OF LICENSE.
70.30The commissioner shall not issue a mortgage loan originator license unless the
70.31commissioner finds at a minimum, that:
70.32(1) the applicant has never had a mortgage loan originator license revoked in a
70.33governmental jurisdiction, except that a subsequent formal vacation of a revocation shall
70.34not be deemed a revocation;
71.1(2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a
71.2felony in a domestic, foreign, or military court:
71.3(i) during the seven-year period preceding the date of the application for licensing
71.4and registration;
71.5(ii) at any time preceding the date of application, if the felony involved an act of
71.6fraud, dishonesty, or a breach of trust, or money laundering; or
71.7(iii) provided that a pardon of a conviction is not a conviction for purposes of this
71.8clause;
71.9(3) the applicant has demonstrated financial responsibility, character, and general
71.10fitness such as to command the confidence of the community and to warrant a
71.11determination that the mortgage loan originator will operate honestly, fairly, and efficiently
71.12within the purposes of this chapter. For purposes of this chapter, a person has shown that
71.13the person is not financially responsible when the person has shown a disregard in the
71.14management of the person's own financial condition. A determination that an individual
71.15has not shown financial responsibility may include, but is not limited to:
71.16(i) current outstanding judgments, except judgments solely as a result of medical
71.17expenses;
71.18(ii) current outstanding tax liens or other government liens and filings;
71.19(iii) foreclosures within the past three years; and
71.20(iv) a pattern of seriously delinquent accounts within the past three years;
71.21(4) the applicant has completed the prelicensing education requirement described
71.22in section 58A.06;
71.23(5) the applicant has passed a written test that meets the test requirement described
71.24in section 58A.07; and
71.25(6) the applicant has met the surety bond requirement as required under section
71.2658A.13.

71.27    Sec. 27. [58A.06] PRELICENSING AND RELICENSING EDUCATION OF
71.28LOAN ORIGINATORS.
71.29    Subdivision 1. Minimum educational requirements. In order to meet the
71.30prelicensing education requirement referred to in section 58A.05, clause (4), a person
71.31shall complete at least 20 hours of education approved according to subdivision 2, that
71.32includes at least:
71.33(1) three hours of federal law and regulations;
71.34(2) three hours of ethics, which includes instruction on fraud, consumer protection,
71.35and fair lending issues; and
72.1(3) two hours of training related to lending standards for the nontraditional mortgage
72.2product marketplace.
72.3    Subd. 2. Approved educational courses. For purposes of subdivision 1,
72.4prelicensing education courses must be reviewed, and approved by the Nationwide
72.5Mortgage Licensing System and Registry based upon reasonable standards. Review
72.6and approval of a prelicensing education course must include review and approval of
72.7the course provider.
72.8    Subd. 3. Approval of employer and affiliate educational courses. Nothing in
72.9this section precludes a prelicensing education course, as approved by the Nationwide
72.10Mortgage Licensing System and Registry, that is provided by the employer of the applicant
72.11or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or
72.12affiliate of the employer or entity.
72.13    Subd. 4. Venue of education. Prelicensing education may be offered in a classroom,
72.14on line, or by any other means approved by the Nationwide Mortgage Licensing System
72.15and Registry.
72.16    Subd. 5. Reciprocity of education. The prelicensing education requirements
72.17approved by the Nationwide Mortgage Licensing System and Registry in subdivision
72.181 for a state must be accepted as credit toward completion of prelicensing education
72.19requirements in Minnesota.
72.20    Subd. 6. Relicensing education requirements. A person previously licensed under
72.21this chapter after the effective date of this chapter applying to be licensed again must
72.22prove that the person has completed all of the continuing education requirements for
72.23the year in which the license was last held.

72.24    Sec. 28. [58A.07] TESTING OF LOAN ORIGINATORS.
72.25    Subdivision 1. Generally. In order to meet the written test requirement referred to
72.26in section 58A.05, clause (5), an individual shall pass, in accordance with the standards
72.27established under this section, a qualified written test developed by the Nationwide
72.28Mortgage Licensing System and Registry and administered by a test provider approved
72.29by the Nationwide Mortgage Licensing System and Registry based upon reasonable
72.30standards.
72.31    Subd. 2. Qualified test. A written test must not be treated as a qualified written
72.32test for purposes of subdivision 1 unless the test adequately measures the applicant's
72.33knowledge and comprehension in appropriate subject areas, including:
72.34(1) ethics;
72.35(2) federal law and regulation pertaining to mortgage origination;
73.1(3) state law and rule pertaining to mortgage origination; and
73.2(4) federal and state law and rule, including instruction on fraud, consumer
73.3protection, the nontraditional mortgage marketplace, and fair lending issues.
73.4    Subd. 3. Testing location. Northing in this section prohibits a test provider approved
73.5by the Nationwide Mortgage Licensing System and Registry from providing a test at the
73.6location of the employer of the applicant or the location of a subsidiary or affiliate of the
73.7employer of the applicant, or the location of an entity with which the applicant holds an
73.8exclusive arrangement to conduct the business of a mortgage loan originator.
73.9    Subd. 4. Minimum competence. (a) An individual is not considered to have
73.10passed a qualified written test unless the individual achieves a test score of not less than
73.1175 percent correct answers to questions.
73.12(b) An individual may retake a test three consecutive times with each consecutive
73.13taking occurring at least 30 days after the preceding test.
73.14(c) After failing three consecutive tests, an individual shall wait at least six months
73.15before taking the test again.
73.16(d) A licensed mortgage loan originator who fails to maintain a valid license for a
73.17period of five years or longer shall retake the test, not taking into account any time during
73.18which the individual is a registered mortgage loan originator.

73.19    Sec. 29. [58A.08] STANDARDS FOR LICENSE RENEWAL.
73.20    Subdivision 1. Generally. The minimum standards for license renewal for a
73.21mortgage loan originator include that the mortgage loan originator:
73.22(1) continues to meet the minimum standards for license issuance under section
73.2358A.05;
73.24(2) has satisfied the annual continuing education requirements described in section
73.2558A.09; and
73.26(3) has paid all required fees for renewal of the license.
73.27    Subd. 2. Failure to satisfy minimum standards of license renewal. The license of
73.28a mortgage loan originator failing to satisfy the minimum standards for license renewal
73.29expires. The commissioner may adopt procedures for the reinstatement of expired licenses
73.30consistent with the standards established by the Nationwide Mortgage Licensing System
73.31and Registry.

73.32    Sec. 30. [58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN
73.33ORIGINATORS.
74.1    Subdivision 1. Generally. In order to meet the annual continuing education
74.2requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage
74.3loan originator shall complete at least eight hours of education approved according to
74.4subdivision 2 that includes at least:
74.5(1) three hours of federal law and regulations;
74.6(2) two hours of ethics, which includes instruction on fraud, consumer protection,
74.7and fair lending issues; and
74.8(3) two hours of training related to lending standards for the nontraditional mortgage
74.9product marketplace.
74.10    Subd. 2. Approved educational courses. For purposes of subdivision 1, continuing
74.11education courses must be reviewed and approved by the Nationwide Mortgage Licensing
74.12System and Registry based upon reasonable standards. Review and approval of a
74.13continuing education course must include review and approval of the course provider.
74.14    Subd. 3. Approval of employer and affiliate educational courses. Nothing in
74.15this section precludes an education course, as approved by the Nationwide Mortgage
74.16Licensing System and Registry, that is provided by the employer of the mortgage loan
74.17originator or an entity that is affiliated with the mortgage loan originator by an agency
74.18contract, or a subsidiary or affiliate of the employer or entity.
74.19    Subd. 4. Venue of education. Continuing education may be offered either in a
74.20classroom, on line, or by other means approved by the Nationwide Mortgage Licensing
74.21System and Registry.
74.22    Subd. 5. Calculation of continuing education credits. A licensed mortgage loan
74.23originator:
74.24(1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive
74.25credit for a continuing education course in the year in which the course is taken; and
74.26(2) may not take the same approved course in the same or successive years to meet
74.27the annual requirements for continuing education.
74.28    Subd. 6. Instructor credit. A licensed mortgage loan originator who is an approved
74.29instructor of an approved continuing education course may receive credit for the licensed
74.30mortgage loan originator's own annual continuing education requirement at the rate of
74.31two hours credit for every one hour taught.
74.32    Subd. 7. Reciprocity of education. A person having successfully completed the
74.33education requirements approved by the Nationwide Mortgage Licensing System and
74.34Registry in subdivision 1 for a state must be accepted as credit toward completion of
74.35continuing education requirements in Minnesota.
75.1    Subd. 8. Lapse in license. A licensed mortgage loan originator who subsequently
75.2becomes unlicensed must complete the continuing education requirements for the last year
75.3in which the license was held before a new or renewed license is issued.
75.4    Subd. 9. Deficiency. A person meeting the requirements of section 58A.08,
75.5subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as
75.6established by rule of the commissioner.

75.7    Sec. 31. [58A.10] AUTHORITY TO REQUIRE LICENSE.
75.8In addition to any other duties imposed upon the commissioner by law, the
75.9commissioner shall require mortgage loan originators to be licensed and registered
75.10through the Nationwide Mortgage Licensing System and Registry. In order to carry out
75.11this requirement, the commissioner may participate in the Nationwide Mortgage Licensing
75.12System and Registry. For this purpose, the commissioner may establish by rule or order
75.13requirements as necessary, including but not limited to:
75.14(1) background checks for:
75.15(i) criminal history through fingerprint or other databases;
75.16(ii) civil or administrative records;
75.17(iii) credit history; or
75.18(iv) other information as determined necessary by the Nationwide Mortgage
75.19Licensing System and Registry;
75.20(2) the payment of fees to apply for or renew licenses through the Nationwide
75.21Mortgage Licensing System and Registry;
75.22(3) the setting or resetting as necessary of renewal or reporting dates; and
75.23(4) requirements for amending or surrendering a license or other activities the
75.24commissioner considers necessary for participation in the Nationwide Mortgage Licensing
75.25System and Registry.

75.26    Sec. 32. [58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND
75.27REGISTRY INFORMATION CHALLENGE PROCESS.
75.28The commissioner shall establish a process that allows mortgage loan originators
75.29to challenge information entered into the Nationwide Mortgage Licensing System and
75.30Registry by the commissioner.

75.31    Sec. 33. [58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND
75.32PENALTIES.
76.1(a) In order to ensure the effective supervision and enforcement of this chapter, the
76.2commissioner may, pursuant to chapter 14:
76.3(1) deny, suspend, revoke, condition, or decline to renew a license for a violation of
76.4this chapter, rules issued under this chapter, or order or directive entered under this chapter;
76.5(2) deny, suspend, revoke, condition, or decline to renew a license if an applicant
76.6or licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or
76.7withholds information or makes a material misstatement in an application for a license
76.8or renewal of a license;
76.9(3) order restitution against persons subject to this chapter for violations of this
76.10chapter;
76.11(4) impose fines on persons subject to this chapter pursuant to paragraphs (b)
76.12to (d); and
76.13(5) issue orders or directives under this chapter as follows:
76.14(i) order or direct persons subject to this chapter to cease and desist from conducting
76.15business, including immediate temporary orders to cease and desist;
76.16(ii) order or direct persons subject to this chapter to cease any harmful activities or
76.17violations of this chapter, including immediate temporary orders to cease and desist;
76.18(iii) enter immediate temporary orders to cease business under a license or interim
76.19license issued pursuant to the authority granted under section 58A.03, subdivision 4, if
76.20the commissioner determines that the license was erroneously granted or the licensee is
76.21currently in violation of this chapter; and
76.22(iv) order or direct other affirmative action the commissioner considers necessary.
76.23(b) The commissioner may impose a civil penalty on a mortgage loan originator or
76.24person subject to this chapter, if the commissioner finds, on the record after notice and
76.25opportunity for hearing, that the mortgage loan originator or person subject to this chapter
76.26has violated or failed to comply with any requirement of this chapter or any rule prescribed
76.27by the commissioner under this chapter or order issued under authority of this chapter.
76.28(c) The maximum amount of penalty for each act or omission described in paragraph
76.29(b) is $25,000.
76.30(d) Each violation or failure to comply with any directive or order of the
76.31commissioner is a separate and distinct violation or failure.

76.32    Sec. 34. [58A.13] SURETY BOND REQUIRED.
76.33    Subdivision 1. Coverage, form, and rules. (a) Each mortgage loan originator must
76.34be covered by a surety bond meeting the requirements of this section. In the event that
76.35the mortgage loan originator is an employee or exclusive agent of a person subject to this
77.1chapter, the surety bond of the person subject to this chapter can be used in lieu of the
77.2mortgage loan originator's surety bond requirement.
77.3(b) The surety bond shall provide coverage for each mortgage loan originator in
77.4an amount as prescribed in subdivision 2.
77.5(c) The surety bond must be in a form as prescribed by the commissioner.
77.6    Subd. 2. Penal sum of surety bond. The penal sum of the surety bond must be
77.7maintained in an amount that reflects the dollar amount of loans originated as determined
77.8by the commissioner.
77.9    Subd. 3. Action on bond. When an action is commenced on a licensee's bond the
77.10commissioner may require the filing of a new bond.
77.11    Subd. 4. New bond. Immediately upon recovery upon any action on the bond
77.12the licensee shall file a new bond.

77.13    Sec. 35. [58A.14] CONFIDENTIALITY.
77.14    Subdivision 1. Protections. Except as otherwise provided in Public Law 110-289,
77.15section 1512, the requirements under chapter 13 or any federal law regarding the privacy
77.16or confidentiality of any information or material provided to the Nationwide Mortgage
77.17Licensing System and Registry, and any privilege arising under federal or state law,
77.18including the rules of any federal or state court, with respect to the information or material,
77.19continue to apply to the information or material after the information or material has been
77.20disclosed to the Nationwide Mortgage Licensing System and Registry. The information
77.21and material may be shared with all state and federal regulatory officials with mortgage
77.22industry oversight authority without the loss of privilege or the loss of confidentiality
77.23protections provided by chapter 13 or federal law.
77.24    Subd. 2. Agreements and sharing arrangements. For purposes of this section,
77.25the commissioner is authorized to enter agreements or sharing arrangements with
77.26other governmental agencies, the Conference of State Bank Supervisors, the American
77.27Association of Residential Mortgage Regulators, or other associations representing
77.28governmental agencies as established by rule or order of the commissioner.
77.29    Subd. 3. Nonapplicability of certain requirements. Information or material that is
77.30subject to a privilege or confidentiality under subdivision 1 is not subject to:
77.31(1) disclosure under any federal or state law governing the disclosure to the public of
77.32information held by an officer or an agency of the federal government or the respective
77.33state; or
77.34(2) subpoena or discovery, or admission into evidence, in any private civil action
77.35or administrative process, unless with respect to any privilege held by the Nationwide
78.1Mortgage Licensing System and Registry with respect to the information or material,
78.2the person to whom the information or material pertains waives, in whole or in part, in
78.3the discretion of the person, that privilege.
78.4    Subd. 4. Coordination with Minnesota Government Data Practices Act. Chapter
78.513 relating to the disclosure of confidential supervisory information or any information or
78.6material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by
78.7the requirements of this section.
78.8    Subd. 5. Public access to information. This section does not apply with respect to
78.9the information or material relating to the employment history of, and publicly adjudicated
78.10disciplinary and enforcement actions against, mortgage loan originators that are included
78.11in the Nationwide Mortgage Licensing System and Registry for access by the public.

78.12    Sec. 36. [58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.
78.13    Subdivision 1. Generally. In addition to any authority allowed under this chapter,
78.14the commissioner may conduct investigations and examinations according to subdivisions
78.152 to 9.
78.16    Subd. 2. Authority to access information. For purposes of initial licensing, license
78.17renewal, license suspension, license conditioning, license revocation or termination, or
78.18general or specific inquiry or investigation to determine compliance with this chapter, the
78.19commissioner may access, receive and use any books, accounts, records, files, documents,
78.20information or evidence including but not limited to:
78.21(1) criminal, civil, and administrative history information, including nonconviction
78.22data;
78.23(2) personal history and experience information including independent credit reports
78.24obtained from a consumer reporting agency described in United States Code, title 15,
78.25section 1681a(p); and
78.26(3) any other documents, information, or evidence the commissioner considers
78.27relevant to the inquiry or investigation regardless of the location, possession, control, or
78.28custody of the documents, information, or evidence.
78.29    Subd. 3. Investigation, examination, and subpoena authority. For the purposes
78.30of investigating violations or complaints arising under this chapter, or for the purposes of
78.31examination, the commissioner may review, investigate, or examine a licensee, individual,
78.32or person subject to this chapter, as often as necessary in order to carry out the purposes
78.33of this chapter. The commissioner may direct, subpoena, or order the attendance of and
78.34examine under oath all persons whose testimony may be required about the loans or the
78.35business or subject matter of any such examination or investigation, and may direct,
79.1subpoena, or order such person to produce books, accounts, records, files, and any other
79.2documents the commissioner considers relevant to the inquiry.
79.3    Subd. 4. Availability of books and records. A licensee, individual, or person
79.4subject to this chapter shall make available to the commissioner upon request the books
79.5and records relating to the operations of the licensee, individual, or person subject to this
79.6chapter. The commissioner shall have access to the books and records and interview
79.7the officers, principals, mortgage loan originators, employees, independent contractors,
79.8agents, and customers of the licensee, individual, or person subject to this chapter
79.9concerning the licensee's, individual's, or person's business.
79.10    Subd. 5. Reports and other information as directed. A licensee, individual, or
79.11person subject to this chapter shall make or compile reports or prepare other information
79.12as directed by the commissioner in order to carry out the purposes of this section including
79.13but not limited to:
79.14(1) accounting compilations;
79.15(2) information lists and data concerning loan transactions in a format prescribed
79.16by the commissioner; or
79.17(3) other information the commissioner considers necessary to carry out the
79.18purposes of this section.
79.19    Subd. 6. Control access to records. In making an examination or investigation
79.20authorized by this chapter, the commissioner may control access to documents and records
79.21of the licensee or person under examination or investigation. The commissioner may
79.22take possession of the documents and records or place a person in exclusive charge of
79.23the documents and records in the place where they are usually kept. During the period of
79.24control, no individual or person shall remove or attempt to remove any of the documents
79.25and records except pursuant to a court order or with the consent of the commissioner.
79.26Unless the commissioner has reasonable grounds to believe the documents or records
79.27of the licensee have been, or are at risk of being, altered or destroyed for purposes of
79.28concealing a violation of this chapter, the licensee or owner of the documents and records
79.29has access to the documents or records as necessary to conduct its ordinary business affairs.
79.30    Subd. 7. Additional authority. In order to carry out the purposes of this section,
79.31the commissioner may:
79.32(1) retain attorneys, accountants, or other professionals and specialists as examiners,
79.33auditors, or investigators to conduct or assist in the conduct of examinations or
79.34investigations;
79.35(2) enter into agreements or relationships with other government officials or
79.36regulatory associations in order to improve efficiencies and reduce regulatory burden
80.1by sharing resources, standardized or uniform methods or procedures, and documents,
80.2records, information, or evidence obtained under this section;
80.3(3) use, hire, contract, or employ public or privately available analytical systems,
80.4methods, or software to examine or investigate the licensee, individual, or person subject
80.5to this chapter;
80.6(4) accept and rely on examination or investigation reports made by other
80.7government officials, within or without this state; or
80.8(5) accept audit reports made by an independent certified public accountant for the
80.9licensee, individual, or person subject to this chapter in the course of that part of the
80.10examination covering the same general subject matter as the audit and incorporate the
80.11audit report in the report of the examination, report of investigation or other writing of
80.12the commissioner.
80.13    Subd. 8. Effect of authority. The authority of this section remains in effect,
80.14whether a licensee, individual, or person subject to this chapter acts or claims to act under
80.15any licensing or registration law of this state, or claims to act without such authority.
80.16    Subd. 9. Withhold records. A licensee, individual, or person subject to
80.17investigation or examination under this section shall not knowingly withhold, abstract,
80.18remove, mutilate, destroy, or secrete any books, records, computer records, or other
80.19information.

80.20    Sec. 37. [58A.16] PROHIBITED ACTS AND PRACTICES.
80.21    Subdivision 1. Generally. It is a violation of this chapter for a person or individual
80.22subject to this chapter to:
80.23(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead
80.24borrowers or lenders or to defraud any person;
80.25(2) engage in any unfair or deceptive practice toward any person;
80.26(3) obtain property by fraud or misrepresentation;
80.27(4) solicit or enter into a contract with a borrower that provides in substance that the
80.28person or individual subject to this chapter may earn a fee or commission through "best
80.29efforts" to obtain a loan even though no loan is actually obtained for the borrower;
80.30(5) solicit, advertise, or enter into a contract for specific interest rates, points, or
80.31other financing terms unless the terms are actually available at the time of soliciting,
80.32advertising, or contracting;
80.33(6) conduct any business covered by this chapter without holding a valid license as
80.34required under this chapter, or assist or aide and abet any person in the conduct of business
80.35under this chapter without a valid license as required under this chapter;
81.1(7) fail to make disclosures as required by this chapter and any other applicable
81.2state or federal law or regulations;
81.3(8) fail to comply with this chapter or rules adopted under this chapter or fail
81.4to comply with any other state or federal law or regulations applicable to any business
81.5authorized or conducted under this chapter;
81.6(9) make, in any manner, any false or deceptive statement or representation
81.7including, with regard to the rates, points, or other financing terms or conditions for a
81.8residential mortgage loan; or engage in bait-and-switch advertising;
81.9(10) negligently make a false statement or knowingly and willfully make an omission
81.10of material fact in connection with any information or reports filed with a governmental
81.11agency or the Nationwide Mortgage Licensing System and Registry or in connection with
81.12an investigation conducted by the commissioner or another governmental agency;
81.13(11) make a payment, threat, or promise, directly or indirectly, to a person for the
81.14purposes of influencing the independent judgment of the person in connection with a
81.15residential mortgage loan, or make a payment threat or promise, directly or indirectly, to
81.16an appraiser of a property, for the purposes of influencing the independent judgment of the
81.17appraiser with respect to the value of the property;
81.18(12) collect, charge, attempt to collect or charge, or use or propose an agreement
81.19purporting to collect or charge a fee prohibited by this chapter;
81.20(13) cause or require a borrower to obtain property insurance coverage in an amount
81.21that exceeds the replacement cost of the improvements as established by the property
81.22insurer; or
81.23(14) fail to truthfully account for money belonging to a party to a residential
81.24mortgage loan transaction.
81.25    Subd. 2. Loan processor or underwriter activities. An individual engaging solely
81.26in loan processor or underwriter activities shall not represent to the public, through
81.27advertising or other means of communicating or providing information, including the use
81.28of business cards, stationery, brochures, signs, rate lists, or other promotional items, that
81.29the individual can or will perform any of the activities of a mortgage loan originator.

81.30    Sec. 38. [58A.17] MORTGAGE CALL REPORTS.
81.31A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and
81.32Registry reports of condition, which must be in the form and contain the information the
81.33Nationwide Mortgage Licensing System and Registry requires.

82.1    Sec. 39. [58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING
82.2SYSTEM AND REGISTRY.
82.3The commissioner shall regularly report violations of this chapter, as well as
82.4enforcement actions and other relevant information, to the Nationwide Mortgage
82.5Licensing System and Registry subject to the provisions contained in section 58A.14.

82.6    Sec. 40. [58A.20] UNIQUE IDENTIFIER SHOWN.
82.7The unique identifier of any person originating a residential mortgage loan shall
82.8be clearly shown on all residential mortgage loan application forms, solicitations, or
82.9advertisements, including business cards or Web sites, and any other documents as
82.10established by rule or order of the commissioner.

82.11    Sec. 41. Minnesota Statutes 2008, section 80A.46, is amended to read:
82.1280A.46 SECTION 202; EXEMPT TRANSACTIONS.
82.13    The following transactions are exempt from the requirements of sections 80A.49
82.14through 80A.54, except 80A.50, paragraph (a), clause (3), and 80A.71:
82.15    (1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers
82.16in Minnesota during any period of 12 consecutive months, whether effected by or through
82.17a broker-dealer or not;
82.18    (2) a nonissuer transaction by or through a broker-dealer registered, or exempt from
82.19registration under this chapter, and a resale transaction by a sponsor of a unit investment
82.20trust registered under the Investment Company Act of 1940, in a security of a class that
82.21has been outstanding in the hands of the public for at least 90 days, if, at the date of
82.22the transaction:
82.23    (A) the issuer of the security is engaged in business, the issuer is not in the
82.24organizational stage or in bankruptcy or receivership, and the issuer is not a blank check,
82.25blind pool, or shell company that has no specific business plan or purpose or has indicated
82.26that its primary business plan is to engage in a merger or combination of the business with,
82.27or an acquisition of, an unidentified person;
82.28    (B) the security is sold at a price reasonably related to its current market price;
82.29    (C) the security does not constitute the whole or part of an unsold allotment to, or
82.30a subscription or participation by, the broker-dealer as an underwriter of the security
82.31or a redistribution;
82.32    (D) a nationally recognized securities manual or its electronic equivalent designated
82.33by rule adopted or order issued under this chapter or a record filed with the Securities and
82.34Exchange Commission that is publicly available contains:
83.1    (i) a description of the business and operations of the issuer;
83.2    (ii) the names of the issuer's executive officers and the names of the issuer's
83.3directors, if any;
83.4    (iii) an audited balance sheet of the issuer as of a date within 18 months before the
83.5date of the transaction or, in the case of a reorganization or merger when the parties to
83.6the reorganization or merger each had an audited balance sheet, a pro forma balance
83.7sheet for the combined organization; and
83.8    (iv) an audited income statement for each of the issuer's two immediately previous
83.9fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case
83.10of a reorganization or merger when each party to the reorganization or merger had audited
83.11income statements, a pro forma income statement; and
83.12    (E) any one of the following requirements is met:
83.13    (i) the issuer of the security has a class of equity securities listed on a national
83.14securities exchange registered under Section 6 of the Securities Exchange Act of 1934
83.15or designated for trading on the National Association of Securities Dealers Automated
83.16Quotation System;
83.17    (ii) the issuer of the security is a unit investment trust registered under the Investment
83.18Company Act of 1940;
83.19    (iii) the issuer of the security, including its predecessors, has been engaged in
83.20continuous business for at least three years; or
83.21    (iv) the issuer of the security has total assets of at least $2,000,000 based on an
83.22audited balance sheet as of a date within 18 months before the date of the transaction or, in
83.23the case of a reorganization or merger when the parties to the reorganization or merger
83.24each had such an audited balance sheet, a pro forma balance sheet for the combined
83.25organization;
83.26    (3) a nonissuer transaction by or through a broker-dealer registered or exempt from
83.27registration under this chapter in a security of a foreign issuer that is a margin security
83.28defined in regulations or rules adopted by the Board of Governors of the Federal Reserve
83.29System;
83.30    (4) a nonissuer transaction by or through a broker-dealer registered or exempt
83.31from registration under this chapter in an outstanding security if the guarantor of the
83.32security files reports with the Securities and Exchange Commission under the reporting
83.33requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
83.34Sections 78m or 78o(d));
83.35    (5) a nonissuer transaction by or through a broker-dealer registered or exempt from
83.36registration under this chapter in a security that:
84.1    (A) is rated at the time of the transaction by a nationally recognized statistical rating
84.2organization in one of its four highest rating categories; or
84.3    (B) has a fixed maturity or a fixed interest or dividend, if:
84.4    (i) a default has not occurred during the current fiscal year or within the three
84.5previous fiscal years or during the existence of the issuer and any predecessor if less than
84.6three fiscal years, in the payment of principal, interest, or dividends on the security; and
84.7    (ii) the issuer is engaged in business, is not in the organizational stage or in
84.8bankruptcy or receivership, and is not and has not been within the previous 12 months a
84.9blank check, blind pool, or shell company that has no specific business plan or purpose or
84.10has indicated that its primary business plan is to engage in a merger or combination of the
84.11business with, or an acquisition of, an unidentified person;
84.12    (6) a nonissuer transaction by or through a broker-dealer registered or exempt from
84.13registration under this chapter effecting an unsolicited order or offer to purchase;
84.14    (7) a nonissuer transaction executed by a bona fide pledgee without the purpose
84.15of evading this chapter;
84.16    (8) a nonissuer transaction by a federal covered investment adviser with investments
84.17under management in excess of $100,000,000 acting in the exercise of discretionary
84.18authority in a signed record for the account of others;
84.19    (9) a transaction in a security, whether or not the security or transaction is otherwise
84.20exempt, in exchange for one or more bona fide outstanding securities, claims, or property
84.21interests, or partly in such exchange and partly for cash, if the terms and conditions of
84.22the issuance and exchange or the delivery and exchange and the fairness of the terms and
84.23conditions have been approved by the administrator after a hearing;
84.24    (10) a transaction between the issuer or other person on whose behalf the offering is
84.25made and an underwriter, or among underwriters;
84.26    (11) a transaction in a note, bond, debenture, or other evidence of indebtedness
84.27secured by a mortgage or other security agreement if:
84.28    (A) the note, bond, debenture, or other evidence of indebtedness is offered and sold
84.29with the mortgage or other security agreement as a unit;
84.30    (B) a general solicitation or general advertisement of the transaction is not made; and
84.31    (C) a commission or other remuneration is not paid or given, directly or indirectly, to
84.32a person not registered under this chapter as a broker-dealer or as an agent;
84.33    (12) a transaction by an executor, administrator of an estate, sheriff, marshal,
84.34receiver, trustee in bankruptcy, guardian, or conservator;
84.35    (13) a sale or offer to sell to:
84.36    (A) an institutional investor;
85.1    (B) an accredited investor;
85.2    (C) a federal covered investment adviser; or
85.3    (D) any other person exempted by rule adopted or order issued under this chapter;
85.4    (14) a sale or an offer to sell securities by an issuer, if the transaction is part of
85.5a single issue in which:
85.6    (A) not more than 35 purchasers are present in this state during any 12 consecutive
85.7months, other than those designated in paragraph (13);
85.8    (B) a general solicitation or general advertising is not made in connection with
85.9the offer to sell or sale of the securities;
85.10    (C) a commission or other remuneration is not paid or given, directly or indirectly, to
85.11a person other than a broker-dealer registered under this chapter or an agent registered
85.12under this chapter for soliciting a prospective purchaser in this state; and
85.13    (D) the issuer reasonably believes that all the purchasers in this state, other than
85.14those designated in paragraph (13), are purchasing for investment.
85.15Any issuer selling to purchasers in this state in reliance on this clause (14) exemption
85.16must provide to the administrator notice of the transaction by filing a statement of issuer
85.17form as adopted by rule. Notice must be filed at least ten days in advance of any sale or
85.18such shorter period as permitted by the administrator. However, an issuer who makes sales
85.19to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not
85.20required to provide this notice;
85.21    (15) a transaction under an offer to existing security holders of the issuer, including
85.22persons that at the date of the transaction are holders of convertible securities, options,
85.23or warrants, if a commission or other remuneration, other than a standby commission, is
85.24not paid or given, directly or indirectly, for soliciting a security holder in this state. The
85.25person making the offer and effecting the transaction must provide to the administrator
85.26notice of the transaction by filing a written description of the transaction. Notice must be
85.27filed at least ten days in advance of any transaction or such shorter period as permitted by
85.28the administrator;
85.29    (16) an offer to sell, but not a sale, of a security not exempt from registration under
85.30the Securities Act of 1933 if:
85.31    (A) a registration or offering statement or similar record as required under the
85.32Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance
85.33with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and
85.34    (B) a stop order of which the offeror is aware has not been issued against the offeror
85.35by the administrator or the Securities and Exchange Commission, and an audit, inspection,
86.1or proceeding that is public and that may culminate in a stop order is not known by the
86.2offeror to be pending;
86.3    (17) an offer to sell, but not a sale, of a security exempt from registration under the
86.4Securities Act of 1933 if:
86.5    (A) a registration statement has been filed under this chapter, but is not effective;
86.6    (B) a solicitation of interest is provided in a record to offerees in compliance with a
86.7rule adopted by the administrator under this chapter; and
86.8    (C) a stop order of which the offeror is aware has not been issued by the administrator
86.9under this chapter and an audit, inspection, or proceeding that may culminate in a stop
86.10order is not known by the offeror to be pending;
86.11    (18) a transaction involving the distribution of the securities of an issuer to the
86.12security holders of another person in connection with a merger, consolidation, exchange
86.13of securities, sale of assets, or other reorganization to which the issuer, or its parent
86.14or subsidiary and the other person, or its parent or subsidiary, are parties. The person
86.15distributing the issuer's securities must provide to the administrator notice of the
86.16transaction by filing a written description of the transaction along with a consent to service
86.17of process complying with section 80A.88. Notice must be filed at least ten days in
86.18advance of any transaction or such shorter period as permitted by the administrator;
86.19    (19) a rescission offer, sale, or purchase under section 80A.77;
86.20    (20) an offer or sale of a security to a person not a resident of this state and not
86.21present in this state if the offer or sale does not constitute a violation of the laws of the
86.22state or foreign jurisdiction in which the offeree or purchaser is present and is not part of
86.23an unlawful plan or scheme to evade this chapter;
86.24    (21) employees' stock purchase, savings, option, profit-sharing, pension, or
86.25similar employees' benefit plan, including any securities, plan interests, and guarantees
86.26issued under a compensatory benefit plan or compensation contract, contained in a
86.27record, established by the issuer, its parents, its majority-owned subsidiaries, or the
86.28majority-owned subsidiaries of the issuer's parent for the participation of their employees
86.29including offers or sales of such securities to:
86.30    (A) directors; general partners; trustees, if the issuer is a business trust; officers;
86.31consultants; and advisors;
86.32    (B) family members who acquire such securities from those persons through gifts or
86.33domestic relations orders;
86.34    (C) former employees, directors, general partners, trustees, officers, consultants, and
86.35advisors if those individuals were employed by or providing services to the issuer when
86.36the securities were offered; and
87.1    (D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's
87.2subsidiaries or parents, or who derive more than 50 percent of their annual income from
87.3those organizations.
87.4A person establishing an employee benefit plan under the exemption in this clause
87.5(21) must provide to the administrator notice of the transaction by filing a written
87.6description of the transaction along with a consent to service of process complying with
87.7section 80A.88. Notice must be filed at least ten days in advance of any transaction or
87.8such shorter period as permitted by the administrator;
87.9    (22) a transaction involving:
87.10    (A) a stock dividend or equivalent equity distribution, whether the corporation or
87.11other business organization distributing the dividend or equivalent equity distribution is
87.12the issuer or not, if nothing of value is given by stockholders or other equity holders for
87.13the dividend or equivalent equity distribution other than the surrender of a right to a cash
87.14or property dividend if each stockholder or other equity holder may elect to take the
87.15dividend or equivalent equity distribution in cash, property, or stock;
87.16    (B) an act incident to a judicially approved reorganization in which a security is
87.17issued in exchange for one or more outstanding securities, claims, or property interests, or
87.18partly in such exchange and partly for cash; or
87.19    (C) the solicitation of tenders of securities by an offeror in a tender offer in
87.20compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162);
87.21    (23) a nonissuer transaction in an outstanding security by or through a broker-dealer
87.22registered or exempt from registration under this chapter, if the issuer is a reporting
87.23issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order
87.24issued under this chapter; has been subject to continuous reporting requirements in the
87.25foreign jurisdiction for not less than 180 days before the transaction; and the security is
87.26listed on the foreign jurisdiction's securities exchange that has been designated by this
87.27paragraph or by rule adopted or order issued under this chapter, or is a security of the same
87.28issuer that is of senior or substantially equal rank to the listed security or is a warrant or
87.29right to purchase or subscribe to any of the foregoing. For purposes of this paragraph,
87.30Canada, together with its provinces and territories, is a designated foreign jurisdiction
87.31and The Toronto Stock Exchange, Inc., is a designated securities exchange. After an
87.32administrative hearing in compliance with chapter 14, the administrator, by rule adopted
87.33or order issued under this chapter, may revoke the designation of a securities exchange
87.34under this paragraph, if the administrator finds that revocation is necessary or appropriate
87.35in the public interest and for the protection of investors;
88.1    (24) any transaction effected by or through a Canadian broker-dealer exempted from
88.2broker-dealer registration pursuant to section 80A.56(b)(3); or
88.3    (25)(A) the offer and sale by a cooperative organized under chapter 308A, or
88.4under the laws of another state, of its securities when the securities are offered and sold
88.5only to its members, or when the purchase of the securities is necessary or incidental to
88.6establishing membership in the cooperative, or when the securities are issued as patronage
88.7dividends. This paragraph applies to a cooperative organized under chapter 308A, or under
88.8the laws of another state, only if the cooperative has filed with the administrator a consent
88.9to service of process under section 80A.88 and has, not less than ten days before the
88.10issuance or delivery, furnished the administrator with a written general description of the
88.11transaction and any other information that the administrator requires by rule or otherwise;
88.12    (B) the offer and sale by a cooperative organized under chapter 308B of its securities
88.13when the securities are offered and sold to its existing members or when the purchase of the
88.14securities is necessary or incidental to establishing patron membership in the cooperative,
88.15or when such securities are issued as patronage dividends. The administrator has the
88.16power to define "patron membership" for purposes of this paragraph. This paragraph
88.17applies to securities, other than securities issued as patronage dividends, only when:
88.18    (i) the issuer, before the completion of the sale of the securities, provides each
88.19offeree or purchaser disclosure materials that, to the extent material to an understanding of
88.20the issuer, its business, and the securities being offered, substantially meet the disclosure
88.21conditions and limitations found in rule 502(b) of Regulation D promulgated by the
88.22Securities and Exchange Commission, Code of Federal Regulations, title 17, section
88.23230.502; and
88.24    (ii) within 15 days after the completion of the first sale in each offering completed in
88.25reliance upon this exemption, the cooperative has filed with the administrator a consent to
88.26service of process under section 80A.88 (or has previously filed such a consent), and has
88.27furnished the administrator with a written general description of the transaction and any
88.28other information that the administrator requires by rule or otherwise; and
88.29(C) a cooperative may, at or about the same time as offers or sales are being
88.30completed in reliance upon the exemptions from registration found in this subpart and as
88.31part of a common plan of financing, offer or sell its securities in reliance upon any other
88.32exemption from registration available under this chapter. The offer or sale of securities in
88.33reliance upon the exemptions found in this subpart will not be considered or deemed a part
88.34of or be integrated with any offer or sale of securities conducted by the cooperative in
88.35reliance upon any other exemption from registration available under this chapter, nor will
88.36offers or sales of securities by the cooperative in reliance upon any other exemption from
89.1registration available under this chapter be considered or deemed a part of or be integrated
89.2with any offer or sale conducted by the cooperative in reliance upon this paragraph.

89.3    Sec. 42. ASSESSMENT.
89.4(a) The commissioner of commerce may levy a pro rata assessment on institutions
89.5licensed under Minnesota Statutes, chapter 58, to recover the costs to the Department of
89.6Commerce for administering the licensing and registration requirements of Minnesota
89.7Statutes, section 58A.10.
89.8(b) The commissioner shall levy the assessments and notify each institution of the
89.9amount of the assessment being levied by September 30, 2010. The institution shall pay
89.10the assessment to the department no later than November 30, 2010. If an institution fails
89.11to pay its assessment by this date, its license may be suspended by the commissioner
89.12until it is paid in full.
89.13(c) This section expires December 1, 2010.

89.14    Sec. 43. REPEALER.
89.15Minnesota Statutes 2009 Supplement, section 58.126, is repealed.

89.16    Sec. 44. EFFECTIVE DATE.
89.17Sections 21 to 40, 42 and 43 are effective July 31, 2010.

89.18ARTICLE 7
89.19TRANSPORTATION

89.20
Section 1. SUMMARY OF APPROPRIATIONS.
89.21The amounts shown in this section summarize direct appropriations, by fund, made
89.22in this article.
89.23
2010
2011
Total
89.24
General
$
(1,733,000)
$
(2,670,000)
$
(4,403,000)
89.25
State Airports
(140,000)
(212,000)
(352,000)
89.26
Trunk Highway
-0-
109,000,000
109,000,000
89.27
Total
$
(1,873,000)
$
106,118,000
$
104,245,000

89.28
Sec. 2. APPROPRIATIONS.
89.29The sums shown in the columns marked "Appropriations" are added to or, if shown
89.30in parentheses, subtracted from the appropriations in Laws 2009, chapter 36, article 1, to
89.31the agencies and for the purposes specified in this article. The appropriations are from the
90.1general fund, or another named fund, and are available for the fiscal years indicated for
90.2each purpose. The figures "2010" and "2011" used in this article mean that the addition to
90.3or subtraction from the appropriations listed under them are available for the fiscal year
90.4ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
90.5reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
90.6day following final enactment.
90.7
APPROPRIATIONS
90.8
Available for the Year
90.9
Ending June 30
90.10
2010
2011

90.11
90.12
Sec. 3. DEPARTMENT OF
TRANSPORTATION
90.13
Subdivision 1.Total Appropriation
$
(811,000)
$
108,318,000
90.14
Appropriations by Fund
90.15
General
(671,000)
(470,000)
90.16
State Airports
(140,000)
(212,000)
90.17
Trunk Highway
-0-
109,000,000
90.18The amounts that may be spent for each
90.19purpose are specified in the following
90.20subdivisions.
90.21
Subd. 2.State Road Construction
-0-
104,000,000
90.22$104,000,000 in fiscal year 2011 is
90.23appropriated to the commissioner of
90.24transportation from the trunk highway
90.25fund for state road construction. This
90.26appropriation is added to appropriations
90.27under Laws 2009, chapter 36, article 1,
90.28section 3, subdivision 3, paragraph (b),
90.29clause (2). This additional appropriation is
90.30funded by additional federal highway aid
90.31of $104,000,000 above that specified in
90.32Laws 2009, chapter 36, article 1, section 3,
90.33subdivision 3, paragraph (b), clause (2). This
90.34is a onetime appropriation.
90.35
Subd. 3.Federal Emergency Relief Account
-0-
5,000,000
91.1$5,000,000 in fiscal year 2011 is transferred
91.2from the trunk highway fund to the trunk
91.3highway emergency relief account and
91.4is appropriated to the commissioner of
91.5transportation for the purposes of that
91.6account.
91.7
Subd. 4.Multimodal Systems
91.8
(a) Aeronautics
(140,000)
(212,000)
91.9
Appropriations by Fund
91.10
Airports
(140,000)
(212,000)
91.11Aviation Support and Services. A reduction
91.12of $140,000 in fiscal year 2010 is made to
91.13Aviation Support and Services, and must
91.14be transferred from the airports fund to the
91.15general fund before June 30, 2010.
91.16A reduction of $212,000 in fiscal year 2011 is
91.17made to Aviation Support and Services, and
91.18must be transferred from the airports fund to
91.19the general fund before June 30, 2011.
91.20
(b) Transit
(462,000)
(345,000)
91.21
Appropriations by Fund
91.22
General
(462,000)
(345,000)
91.23The base for nonmetro transit grants in 2012
91.24is $16,598,000.
91.25
(c) Freight
(125,000)
(125,000)
91.26
Appropriations by Fund
91.27
General
(125,000)
(125,000)
91.28This reduction is from the hazardous
91.29materials registration program.
91.30
Subd. 5.Urban Partnership Reduction
(84,000)
-0-
91.31
Appropriations by Fund
91.32
General
(84,000)
-0-
92.1This is a onetime reduction from the
92.2appropriation in Laws 2008, chapter 179,
92.3section 16, subdivision 3.
92.4
Subd. 6.Transfers
92.5Notwithstanding any law to the contrary,
92.6by June 30, 2010, the commissioner shall
92.7transfer $265,000 from accounts in the
92.8special revenue fund to the general fund.
92.9After July 1, 2010, and before June 30, 2011,
92.10the commissioner shall transfer $376,000
92.11from accounts in the special revenue fund to
92.12the general fund.

92.13
Sec. 4. DEPARTMENT OF PUBLIC SAFETY
$
-0-
$
(82,000)
92.14
Appropriations by Fund
92.15
General
-0-
(82,000)
92.16This appropriation reduction is to the
92.17information technology budget in the
92.18technical support services budget activity
92.19of the administration and related services
92.20program. This reduction is permanent.

92.21
Sec. 5. METROPOLITAN COUNCIL
$
(1,062,000)
$
(2,118,000)
92.22
Appropriations by Fund
92.23
General
(1,062,000)
(2,118,000)
92.24These reductions are to the bus transit
92.25appropriations in Laws 2009, chapter
92.2636, article 1, section 4, subdivision 2.
92.27To the extent possible, the council shall
92.28reduce administrative costs to achieve the
92.29reductions. This reduction is permanent.

92.30    Sec. 6. Minnesota Statutes 2008, section 161.04, is amended by adding a subdivision
92.31to read:
93.1    Subd. 5. Trunk highway emergency relief account. (a) The trunk highway
93.2emergency relief account is created in the trunk highway fund. Money in the account
93.3is appropriated to the commissioner to be used to fund relief activities related to an
93.4emergency, as defined in section 161.32, subdivision 3.
93.5(b) Reimbursements by the Federal Highway Administration for emergency relief
93.6payments made from the trunk highway emergency relief account must be deposited
93.7into the account. Interest accrued on the account must be deposited into the account.
93.8Notwithstanding section 16A.28, money appropriated to the account for this program from
93.9any source is available until spent. If the balance of the account at the end of the fiscal
93.10year is greater than $10,000,000, the amount above $10,000,000 must be transferred to
93.11the trunk highway fund.
93.12(c) By September 1, 2012, and in every subsequent even-numbered year by
93.13September 1, the commissioner shall submit a report to the chairs and ranking minority
93.14members of the house of representatives and senate committees having jurisdiction over
93.15transportation policy and finance. The report must include the balance, as well as details
93.16of payments made from and deposits made to the trunk highway emergency relief account
93.17since the last report.

93.18    Sec. 7. REPEALER.
93.19Minnesota Statutes 2008, sections 13.721, subdivision 4; and 221.0355, subdivisions
93.201, 2, 3, 4, 5, 6, 7, 7a, 8, 9, 10, 11, 12, 13, 14, 16, 17, and 18, are repealed.

93.21ARTICLE 8
93.22PUBLIC SAFETY

93.23
Section 1. SUMMARY OF APPROPRIATIONS.
93.24The amounts shown in this section summarize direct appropriations, by fund, made
93.25in this article.
93.26
2010
2011
Total
93.27
General
$
(2,531,000)
$
(3,241,000)
$
(5,772,000)

93.28
Sec. 2. APPROPRIATIONS.
93.29The sums shown in the columns marked "Appropriations" are added to or, if shown
93.30in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to
93.31the agencies and for the purposes specified in this article. The appropriations are from the
93.32general fund, or another named fund, and are available for the fiscal years indicated for
94.1each purpose. The figures "2010" and "2011" used in this article mean that the addition
94.2to or subtraction from the appropriation listed under them is available for the fiscal year
94.3ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
94.4reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
94.5day following final enactment.
94.6
APPROPRIATIONS
94.7
Available for the Year
94.8
Ending June 30
94.9
2010
2011

94.10
Sec. 3. DEPARTMENT OF PUBLIC SAFETY
94.11
Subdivision 1.Total Appropriation
$
-0-
$
1,800,000
94.12The amounts that may be spent for each
94.13purpose are specified in the following
94.14subdivisions.
94.15
Subd. 2.Emergency Management
-0-
1,600,000
94.16This appropriation is to provide a match for
94.17Federal Emergency Management Agency
94.18(FEMA) disaster assistance payments under
94.19Minnesota Statutes, section 12.221. This is a
94.20onetime appropriation.
94.21
Subd. 3.Criminal Apprehension
-0-
200,000
94.22$200,000 is a onetime appropriation to
94.23the Bureau of Criminal Apprehension for
94.24enhancements to the predatory offender
94.25registry architecture, and for technical
94.26upgrades including the conversion of
94.27documents to a digital format.
94.28
Subd. 4.Fire Marshal
94.29Transfers
94.30By June 30, 2010, the commissioner shall
94.31transfer $6,900,000 from the fire safety
94.32account in the special revenue fund to the
94.33general fund.
95.1By June 30, 2011, the commissioner shall
95.2transfer $3,000,000 from the fire safety
95.3account in the special revenue fund to the
95.4general fund.

95.5
Sec. 4. PRIVATE DETECTIVE BOARD
$
(2,000)
$
(3,000)

95.6
Sec. 5. HUMAN RIGHTS
$
(59,000)
$
(103,000)

95.7
Sec. 6. CORRECTIONS
95.8
Subdivision 1.Total Appropriation
$
(2,459,000)
$
(4,917,000)
95.9The amounts that may be spent for each
95.10purpose are specified in the following
95.11subdivisions.
95.12
Subd. 2.Correctional Institutions
(847,000)
(1,693,000)
95.13
Subd. 3.Community Services
(1,612,000)
(3,224,000)
95.14Transfers
95.15Notwithstanding Minnesota Statutes, section
95.16241.27, the commissioner shall transfer
95.17$574,000 by June 30, 2010, and $989,000
95.18by June 30, 2011, from the Minnesota
95.19correctional industries revolving fund to the
95.20general fund. These transfers are onetime.
95.21These transfers are in addition to those in
95.22Laws 2009, chapter 83, article 1, section 14,
95.23subdivision 2, paragraph (g).
95.24The commissioner shall transfer $201,000
95.25by June 30, 2010, and $402,000 by June 30,
95.262011, from the special revenue fund to the
95.27general fund. These transfers are onetime.

95.28
Sec. 7. SENTENCING GUIDELINES
$
(11,000)
$
(18,000)

95.29    Sec. 8. Minnesota Statutes 2008, section 169A.52, subdivision 6, is amended to read:
96.1    Subd. 6. Notice of revocation or disqualification; review. A revocation under
96.2this section or a disqualification under section 171.165 (commercial driver's license
96.3disqualification) becomes effective at the time the commissioner or a peace officer acting
96.4on behalf of the commissioner notifies the person of the intention to revoke, disqualify, or
96.5both, and of revocation or disqualification. The notice must advise the person of the right
96.6to obtain administrative and judicial review by the commissioner and an administrative
96.7hearing review as provided in section 169A.53 (administrative and judicial review of
96.8license revocation). If mailed, the notice and order of revocation or disqualification is
96.9deemed received three days after mailing to the last known address of the person.
96.10EFFECTIVE DATE.This section is effective January 1, 2011.

96.11    Sec. 9. Minnesota Statutes 2008, section 169A.53, is amended to read:
96.12169A.53 COMMISSIONER REVIEW AND ADMINISTRATIVE AND
96.13JUDICIAL HEARING REVIEW OF LICENSE REVOCATION; APPEAL.
96.14    Subdivision 1. Administrative Commissioner review. (a) At any time during a
96.15period of revocation imposed under section 169A.52 (revocation of license for test failure
96.16or refusal) or a period of disqualification imposed under section 171.165 (commercial
96.17driver's license disqualification), a person may request in writing a review of the order
96.18of revocation or disqualification by the commissioner, unless the person is entitled to
96.19review under section 171.166 (review of disqualification). Upon receiving a request the
96.20commissioner or the commissioner's designee shall review the order, the evidence upon
96.21which the order was based, and any other material information brought to the attention
96.22of the commissioner, and determine whether sufficient cause exists to sustain the order.
96.23Within 15 days of receiving the request the commissioner shall report in writing the results
96.24of the review. The review provided in this subdivision is not subject to the contested case
96.25provisions of the Administrative Procedure Act in sections 14.001 to 14.69.
96.26(b) The availability of administrative review for an order of revocation or
96.27disqualification has no effect upon the availability of judicial an administrative review
96.28hearing under this section.
96.29(c) Review under this subdivision must take place, if possible, at the same time as
96.30any administrative review of the person's impoundment order under section 169A.60,
96.31subdivision 9
.
96.32    Subd. 2. Petition for judicial administrative review hearing. (a) Notwithstanding
96.33section 14.57 and other law to the contrary, within 30 days following receipt of a notice
96.34and order of revocation or disqualification pursuant to section 169A.52 (revocation of
97.1license for test failure or refusal), a person may petition the court Office of Administrative
97.2Hearings for review. The petition must be filed with the district court administrator in the
97.3county where the alleged offense occurred, Office of Administrative Hearings, together
97.4with proof of service of a copy on the commissioner, and accompanied by the standard
97.5filing fee for civil actions provided under section 357.081. Responsive pleading is not
97.6required of the commissioner, and court fees must not be charged for the appearance of
97.7the commissioner in the matter.
97.8(b) The petition must:
97.9(1) be captioned in the full name of the person making the petition as petitioner and
97.10the commissioner as respondent;
97.11(2) include the petitioner's date of birth, driver's license number, and date of the
97.12offense; and
97.13(3) state with specificity the grounds upon which the petitioner seeks rescission of
97.14the order of revocation, disqualification, or denial.
97.15(c) The filing of the petition does not stay the revocation, disqualification, or denial.
97.16The reviewing court hearing officer may order a stay of the balance of the revocation or
97.17disqualification if the hearing has not been conducted within 60 days after filing of the
97.18petition upon terms the court hearing officer deems proper.
97.19(d) Judicial Reviews must be conducted according to the Rules of Civil Procedure,
97.20except that sections 14.57 to 14.69 and Minnesota Rules, parts 1400.5010 to 1400.8401,
97.21unless otherwise provided in this section.
97.22(e) Prehearing discovery is mandatory and is limited to:
97.23(1) the notice of revocation;
97.24(2) the test record or, in the case of blood or urine tests, the certificate of analysis;
97.25(3) the peace officer's certificate and any accompanying documentation submitted by
97.26the arresting officer to the commissioner; and
97.27(4) disclosure of potential witnesses, including experts, and the basis of their
97.28testimony.
97.29Other types of discovery are available only upon order of the court administrative
97.30law judge.
97.31    Subd. 3. Judicial Administrative review hearing; issues, order, appeal. (a) A
97.32judicial review hearing under this section must be before a district judge in any county in
97.33the judicial district where the alleged offense occurred. The hearing is to the court and
97.34may be conducted at the same time and in the same manner as hearings upon pretrial
97.35motions in the criminal prosecution under section 169A.20 (driving while impaired), if
97.36any. The hearing must be recorded. The commissioner shall appear and be represented by
98.1the attorney general or through the prosecuting authority for the jurisdiction involved. The
98.2hearing must be held at the earliest practicable date, and in any event no later than 60 days
98.3following the filing of the petition for review. The judicial district administrator Office of
98.4Administrative Hearings shall establish procedures to ensure efficient compliance with
98.5this subdivision. To accomplish this, the administrator Office of Administrative Hearings
98.6may, whenever possible, consolidate and transfer review hearings among the locations
98.7within the judicial district where terms of district court are held and receive testimony and
98.8argument by means of interactive television.
98.9(b) The scope of the hearing is limited to the issues in clauses (1) to (10):
98.10(1) Did the peace officer have probable cause to believe the person was driving,
98.11operating, or in physical control of a motor vehicle or commercial motor vehicle in
98.12violation of section 169A.20 (driving while impaired)?
98.13(2) Was the person lawfully placed under arrest for violation of section 169A.20?
98.14(3) Was the person involved in a motor vehicle accident or collision resulting in
98.15property damage, personal injury, or death?
98.16(4) Did the person refuse to take a screening test provided for by section 169A.41
98.17(preliminary screening test)?
98.18(5) If the screening test was administered, did the test indicate an alcohol
98.19concentration of 0.08 or more?
98.20(6) At the time of the request for the test, did the peace officer inform the person
98.21of the person's rights and the consequences of taking or refusing the test as required by
98.22section 169A.51, subdivision 2?
98.23(7) Did the person refuse to permit the test?
98.24(8) If a test was taken by a person driving, operating, or in physical control of a
98.25motor vehicle, did the test results indicate at the time of testing:
98.26(i) an alcohol concentration of 0.08 or more; or
98.27(ii) the presence of a controlled substance listed in schedule I or II or its metabolite,
98.28other than marijuana or tetrahydrocannabinols?
98.29(9) If a test was taken by a person driving, operating, or in physical control of a
98.30commercial motor vehicle, did the test results indicate an alcohol concentration of 0.04 or
98.31more at the time of testing?
98.32(10) Was the testing method used valid and reliable and were the test results
98.33accurately evaluated?
98.34(c) It is an affirmative defense for the petitioner to prove that, at the time of the
98.35refusal, the petitioner's refusal to permit the test was based upon reasonable grounds.
99.1(d) Certified or otherwise authenticated copies of laboratory or medical personnel
99.2reports, records, documents, licenses, and certificates are admissible as substantive
99.3evidence.
99.4(e) The court hearing officer shall order that the revocation or disqualification be
99.5either rescinded or sustained and forward the order to the commissioner. The court hearing
99.6officer shall file its the order within 14 days following the hearing. If the revocation or
99.7disqualification is sustained, the court hearing officer shall also forward the person's
99.8driver's license or permit to the commissioner for further action by the commissioner if the
99.9license or permit is not already in the commissioner's possession.
99.10(f) Any party aggrieved by the decision of the reviewing court hearing officer may
99.11appeal the decision as provided in the Rules of Appellate Procedure chapter 14.
99.12(g) The civil administrative review hearing under this section shall not give rise to
99.13an estoppel on any issues arising from the same set of circumstances in any criminal
99.14prosecution.
99.15EFFECTIVE DATE.This section is effective January 1, 2011.

99.16    Sec. 10. Minnesota Statutes 2008, section 169A.60, subdivision 10, is amended to read:
99.17    Subd. 10. Petition for judicial administrative review hearing; appeal. (a)
99.18Notwithstanding section 14.57and other law to the contrary, within 30 days following
99.19receipt of a notice and order of impoundment under this section, a person may petition
99.20the court Office of Administrative Hearings for review. The petition must include proof
99.21of service of a copy of the petition on the commissioner. The petition must include the
99.22petitioner's date of birth, driver's license number, and date of the plate impoundment
99.23violation, as well as the name of the violator and the law enforcement agency that issued
99.24the plate impoundment order. The petition must state with specificity the grounds upon
99.25which the petitioner seeks rescission of the order for impoundment. The petition may be
99.26combined with any petition filed under section 169A.53 (administrative and judicial
99.27review of license revocation).
99.28(b) Except as otherwise provided in this section, the judicial administrative review
99.29and hearing are is governed by section 169A.53 and must take place at the same time as
99.30any judicial review administrative review hearing of the person's license revocation under
99.31section 169A.53. The filing of the petition does not stay the impoundment order. The
99.32reviewing court hearing officer may order a stay of the balance of the impoundment period
99.33if the hearing has not been conducted within 60 days after filing of the petition upon terms
99.34the court hearing officer deems proper. The court hearing officer shall order either that the
100.1impoundment be rescinded or sustained, and forward the order to the commissioner. The
100.2court hearing officer shall file its order within 14 days following the hearing.
100.3(c) In addition to the issues described in section 169A.53, subdivision 3 (judicial
100.4administrative review of license revocation), the scope of a hearing under this subdivision
100.5is limited to:
100.6(1) if the impoundment is based on a plate impoundment violation described in
100.7subdivision 1, paragraph (d), clause (3) or (4), whether the peace officer had probable
100.8cause to believe the violator committed the plate impoundment violation and whether the
100.9evidence demonstrates that the plate impoundment violation occurred; and
100.10(2) for all other cases, whether the peace officer had probable cause to believe the
100.11violator committed the plate impoundment violation.
100.12(d) In a hearing under this subdivision, the following records are admissible in
100.13evidence:
100.14(1) certified copies of the violator's driving record; and
100.15(2) certified copies of vehicle registration records bearing the violator's name.
100.16(e) Any party aggrieved by the decision of the hearing officer may appeal the
100.17decision as provided in chapter 14.
100.18EFFECTIVE DATE.This section is effective January 1, 2011.

100.19    Sec. 11. [357.081] OFFICE OF ADMINISTRATIVE HEARINGS; FEE.
100.20The Office of Administrative Hearings shall charge and collect a filing fee of $310
100.21from a person filing a petition for an administrative review of a driver's license revocation
100.22under section 169A.53, vehicle impoundment under section 169A.60, or combined review.
100.23Notwithstanding section 14.54, the Office of Administrative Hearings shall transmit the
100.24fees monthly to the commissioner of management and budget for deposit in the state
100.25treasury and credit to the general fund.
100.26EFFECTIVE DATE.This section is effective August 1, 2011.

100.27    Sec. 12. RULEMAKING AUTHORITY.
100.28The Office of Administrative Hearings shall adopt rules under Minnesota Statutes,
100.29chapter 14, to implement sections 8 to 11. The rules must include, at a minimum, the
100.30procedure for hearings in regional offices, and the use of teleconferencing and highly
100.31qualified hearing officers. The Office of Administrative Hearings may adopt the initial set
100.32of these rules as exempt rules under Minnesota Statutes, section 14.386. These rules are
101.1permanent and effective upon publication in the state register until further amended or
101.2repealed by the Office of Administrative Hearings.
101.3EFFECTIVE DATE.This section is effective the day following final enactment.

101.4    Sec. 13. REVISOR'S INSTRUCTION.
101.5The revisor of statutes shall prepare a bill for introduction in the 2011 regular
101.6legislative session making any technical and conforming changes to Minnesota Statutes
101.7made necessary by sections 8 to 12.

101.8ARTICLE 9
101.9JUDICIARY

101.10
Section 1. SUMMARY OF APPROPRIATIONS.
101.11The amounts shown in this section summarize direct appropriations, by fund, made
101.12in this article.
101.13
2010
2011
Total
101.14
General
$
(6,184,000)
$
(11,901,000)
$
(18,085,000)

101.15
Sec. 2. APPROPRIATIONS.
101.16The sums shown in the columns marked "Appropriations" are added to or, if shown
101.17in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to
101.18the agencies and for the purposes specified in this article. The appropriations are from the
101.19general fund, or another named fund, and are available for the fiscal years indicated for
101.20each purpose. The figures "2010" and "2011" used in this article mean that the addition
101.21to or subtraction from the appropriation listed under them is available for the fiscal year
101.22ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
101.23reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
101.24day following final enactment.
101.25
APPROPRIATIONS
101.26
Available for the Year
101.27
Ending June 30
101.28
2010
2011

101.29
Sec. 3. SUPREME COURT
101.30
Subdivision 1.Total Appropriation
$
(856,000)
$
(1,664,000)
102.1The amounts that may be spent for each
102.2purpose are specified in the following
102.3subdivisions.
102.4
Subd. 2.Supreme Court Operations
(529,000)
(938,000)
102.5
Subd. 3.Civil Legal Services
(327,000)
(726,000)
102.6This includes a reduction of $22,000 in fiscal
102.7year 2010 and $53,000 in fiscal year 2011
102.8for legal services to low-income clients in
102.9family law matters.

102.10
Sec. 4. COURT OF APPEALS
$
(159,000)
$
(309,000)

102.11
Sec. 5. TRIAL COURTS
$
(4,242,000)
$
(7,503,000)

102.12
Sec. 6. TAX COURT
$
(12,000)
$
(25,000)

102.13
Sec. 7. UNIFORM LAWS COMMISSION
$
-0-
$
(2,000)

102.14
Sec. 8. BOARD ON JUDICIAL STANDARDS
$
(10,000)
$
(14,000)
102.15This includes a reduction of $5,000 in fiscal
102.16year 2010 and $4,000 in fiscal year 2011
102.17from funding for special investigative and
102.18hearing costs.

102.19
Sec. 9. BOARD OF PUBLIC DEFENSE
$
(905,000)
$
(2,384,000)

102.20ARTICLE 10
102.21STATE GOVERNMENT

102.22
Section 1. SUMMARY OF APPROPRIATIONS.
102.23The amounts shown in this section summarize direct appropriations, by fund, made
102.24in this article.
102.25
2010
2011
Total
102.26
General
$
(3,845,000)
$
244,000
$
(3,601,000)
102.27
Health Care Access
$
(16,000)
$
(22,000)
$
(38,000)
102.28
Special Revenue
$
(70,000)
$
(117,000)
$
(187,000)
103.1
Lottery Prize Fund
$
-0-
$
(50,000)
$
(50,000)
103.2
Total
$
(3,931,000)
$
55,000
$
(3,876,000)

103.3
Sec. 2. APPROPRIATIONS.
103.4The sums shown in the columns marked "APPROPRIATIONS" are added to or, if
103.5shown in parentheses, subtracted from the appropriations in Laws 2009, chapter 101,
103.6article 1, to the agencies and for the purposes specified in this article. The appropriations
103.7are from the general fund, or another named fund, and are available for the fiscal years
103.8indicated for each purpose. The figures "2010" and "2011" used in this article mean
103.9that the addition to or subtraction from the appropriation listed under them is available
103.10for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Supplemental
103.11appropriations and reductions to appropriations for the fiscal year ending June 30, 2010,
103.12are effective the day following final enactment.
103.13
APPROPRIATIONS
103.14
Available for the Year
103.15
Ending June 30
103.16
2010
2011

103.17
Sec. 3. LEGISLATURE
$
(1,126,000)
$
(2,940,000)
103.18
Appropriations by Fund
103.19
2010
2011
103.20
General
(1,121,000)
(2,935,000)
103.21
Health Care Access
(5,000)
(5,000)
103.22In fiscal year 2011, $536,000 is canceled
103.23to the general fund from the accounts
103.24established under Minnesota Statutes, section
103.2516A.281.

103.26
103.27
Sec. 4. GOVERNOR AND LIEUTENANT
GOVERNOR
$
(64,000)
$
(146,000)
103.28$10,000 in fiscal year 2010 and $32,000
103.29in fiscal year 2011 are transferred from
103.30the interagency agreements account in the
103.31special revenue fund to the general fund.
103.32These are onetime transfers.

103.33
Sec. 5. STATE AUDITOR
$
(32,000)
$
(78,000)

104.1
Sec. 6. ATTORNEY GENERAL
$
(436,000)
$
(954,000)

104.2
Sec. 7. SECRETARY OF STATE
$
(104,000)
$
(250,000)

104.3
104.4
Sec. 8. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
$
(28,000)
$
(8,000)
104.5The base budget for the Campaign Finance
104.6and Public Disclosure Board is $726,000 in
104.7fiscal year 2012 and $726,000 in fiscal year
104.82013.

104.9
Sec. 9. INVESTMENT BOARD
$
(2,000)
$
(5,000)

104.10
104.11
Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY
$
(111,000)
$
(169,000)
104.12These reductions are from the enterprise
104.13planning and management program.

104.14
Sec. 11. ADMINISTRATIVE HEARINGS
$
(8,000)
$
487,000
104.15$495,000 in fiscal year 2011 is for the cost of
104.16administrative reviews filed under Minnesota
104.17Statutes, sections 169A.53, subdivision 3,
104.18and 169A.60, subdivision 10. The general
104.19fund base for the Office of Administrative
104.20Hearings is $1,037,000 in fiscal year 2012
104.21and $907,000 in fiscal year 2013.

104.22
Sec. 12. ADMINISTRATION
$
-0-
$
(419,000)
104.23(a) These reductions are from the government
104.24and citizens services program. $8,000 of
104.25the reductions in fiscal year 2011 is
104.26from the transfer to the commissioner
104.27of human services for a grant to the
104.28Council of Developmental Disabilities. The
104.29appropriation for this grant shall be included
104.30in the base budget for the commissioner of
104.31human services for the biennium beginning
105.1July 1, 2011, and is reduced by $8,000 each
105.2year of the biennium. The general fund
105.3base budget for the government and citizens
105.4services program is $8,936,000 in fiscal year
105.52012 and $8,936,000 in fiscal year 2013.
105.6(b) $209,000 in fiscal year 2010 and $31,000
105.7in fiscal year 2011 are transferred from the
105.8central stores fund to the general fund. These
105.9are onetime transfers.
105.10(c) The balance in the commuter van program
105.11account in the special revenue fund shall be
105.12transferred to the general fund on or before
105.13June 30, 2010. This is a onetime transfer.
105.14(d) The balance in the archaeology burial
105.15account of the special revenue fund shall be
105.16transferred to the general fund on or before
105.17June 30, 2010. This is a onetime transfer.
105.18(e) $1,492 in fiscal year 2010 is transferred
105.19from the utility rebates account in the special
105.20revenue fund to the general fund. This is a
105.21onetime transfer.

105.22
105.23
105.24
Sec. 13. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD
$
(6,000)
$
(11,000)

105.25
Sec. 14. MANAGEMENT AND BUDGET
$
(386,000)
$
(599,000)
105.26(a) $300 in fiscal year 2010 and $300 in
105.27fiscal year 2011 are transferred from the
105.28combined charities administration account in
105.29the special revenue fund to the general fund.
105.30These are onetime transfers.
105.31(b) $8,700 in fiscal year 2010 and $10,700
105.32in fiscal year 2011 are transferred from the
105.33information systems division account in the
106.1special revenue fund to the general fund.
106.2These are onetime transfers.

106.3
Sec. 15. REVENUE
106.4
Subdivision 1.Total Appropriation
$
(779,000)
$
5,362,000
106.5
Appropriations by Fund
106.6
2010
2011
106.7
General
(768,000)
5,379,000
106.8
Health Care Access
(11,000)
(17,000)
106.9
Subd. 2.Tax System Management
(779,000)
3,492,000
106.10
Appropriations by Fund
106.11
2010
2011
106.12
General
(768,000)
3,509,000
106.13
Health Care Access
(11,000)
(17,000)
106.14(a) $4,857,000 is for additional activities
106.15to identify and collect tax liabilities from
106.16individuals and business that currently do not
106.17pay all taxes owed. This initiative is expected
106.18to result in new general fund revenues of
106.19$13,065,000 for fiscal year 2011.
106.20(b) The department must report to the chairs
106.21of the house of representative Ways and
106.22Means and senate Finance Committees by
106.23March 15, 2011, and January 15, 2012, on
106.24the following performance indicators:
106.25(1) the number of corporations noncompliant
106.26with the corporate tax system each year and
106.27the percentage and dollar amounts of valid
106.28tax liabilities collected;
106.29(2) the number of businesses noncompliant
106.30with the sales and use tax system and the
106.31percentage and dollar amount of the valid tax
106.32liabilities collected; and
107.1(3) the number of individual noncompliant
107.2cases resolved and the percentage and dollar
107.3amount of valid tax liabilities collected.
107.4(c) The reports must also identify base-level
107.5expenditures and staff positions related to
107.6compliance and audit activities, including
107.7baseline information as of January 1, 2009.
107.8The information must be provided at the
107.9budget activity level.
107.10
Subd. 3.Debt Collection Management
-0-
1,870,000
107.11$1,870,000 is for additional activities to
107.12identify and collect tax liabilities from
107.13individuals and businesses that currently
107.14do not pay all taxes owed. This initiative
107.15is expected to result in new general fund
107.16revenues of $13,800,000 for fiscal year 2011.

107.17
Sec. 16. GAMBLING CONTROL
$
(51,000)
$
(88,000)
107.18$51,000 in fiscal year 2010 and $88,000
107.19in fiscal year 2011 are transferred from
107.20the lawful gambling account in the special
107.21revenue fund to the general fund. These are
107.22onetime transfers.

107.23
Sec. 17. RACING COMMISSION
$
(19,000)
$
(29,000)
107.24$19,000 in fiscal year 2010 and $29,000 in
107.25fiscal year 2011 are transferred from the
107.26racing and card playing regulation accounts
107.27in the special revenue fund to the general
107.28fund. These are onetime transfers.

107.29
Sec. 18. AMATEUR SPORTS
$
(4,000)
$
(8,000)

107.30
107.31
Sec. 19. COUNCIL ON BLACK
MINNESOTANS
$
(5,000)
$
(9,000)

108.1
108.2
Sec. 20. COUNCIL ON CHICANO-LATINO
AFFAIRS
$
(6,000)
$
(9,000)

108.3
108.4
Sec. 21. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
$
(5,000)
$
(8,000)

108.5
Sec. 22. INDIAN AFFAIRS COUNCIL
$
(9,000)
$
(14,000)

108.6
108.7
Sec. 23. GENERAL CONTINGENT
ACCOUNTS
$
(750,000)
$
-0-
108.8This reduction is from the appropriation for
108.9potential state matching requirements under
108.10the American Reinvestment and Recovery
108.11Act of 2009.

108.12    Sec. 24. ADDITIONAL OPERATING BUDGET REDUCTIONS.
108.13By July 30, 2010, the commissioner of management and budget shall allocate a
108.14reduction of $9,000,000 per year to the operating budgets of executive branch state
108.15agencies, as defined in Minnesota Statutes, section 16A.011, subdivision 12a. To the
108.16extent possible, this reduction must be achieved through estimated savings in expenditures
108.17for technology, space, or services. If expenditure reductions are achieved in dedicated
108.18funds other than those established in the state constitution or protected by federal law,
108.19the commissioner of management and budget may transfer the amount of the savings to
108.20the general fund. Executive branch state agencies shall cooperate with the commissioner
108.21of management and budget in developing and implementing these reductions. Any
108.22amount of the reduction that cannot be achieved through savings in the expenditure types
108.23described in this section must be allocated to executive state agency operating budgets
108.24by the commissioner. Reductions in fiscal year 2011 shall cancel to the general fund
108.25and future reductions shall be reflected as reductions in agency base budgets for fiscal
108.26years 2012 and 2013. The commissioner of management and budget shall report to the
108.27chairs and ranking minority members of the senate Finance Committee and the house
108.28of representatives Ways and Means and Finance Committees regarding the amount of
108.29reductions in spending by each agency under this section.

108.30    Sec. 25. Minnesota Statutes 2009 Supplement, section 16A.82, is amended to read:
108.3116A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
109.1$3,548,000 in fiscal year 2010; $3,546,000 in fiscal year 2011; and $10,054,000 in
109.2each fiscal year 2012 through 2019 The following amounts are appropriated from the
109.3general fund to the commissioner to make payments under a lease-purchase agreement
109.4as defined in section 16A.81 for replacement of the state's accounting and procurement
109.5systems, provided that the state is not obligated to continue such appropriation of funds or
109.6to make lease payments in any future fiscal year.
109.7
Fiscal year 2010
$ 2,828,038
109.8
Fiscal year 2011
$ 3,063,950
109.9
Fiscal year 2012
$ 8,967,850
109.10
Fiscal year 2013
$ 8,968,950
109.11
Fiscal year 2014
$ 8,970,850
109.12
Fiscal year 2015
$ 8,971,150
109.13
Fiscal year 2016
$ 8,966,450
109.14
Fiscal year 2017
$ 8,967,500
109.15
Fiscal year 2018
$ 8,970,750
109.16
Fiscal year 2019
$ 8,968,500
109.17Of these appropriations, up to $2,000 per year may be used to pay the annual trustee
109.18fees for the lease-purchase agreements authorized in this section and section 270C.145.
109.19Any unexpended portions of this appropriation cancel to the general fund at the close of
109.20each biennium. This section expires June 30, 2020 2019.
109.21EFFECTIVE DATE.This section is effective the day following final enactment.

109.22    Sec. 26. Minnesota Statutes 2008, section 16B.04, subdivision 2, is amended to read:
109.23    Subd. 2. Powers and duties, generally. Subject to other provisions of this chapter,
109.24the commissioner is authorized to:
109.25    (1) supervise, control, review, and approve all state contracts and purchasing;
109.26    (2) provide agencies with supplies and equipment and operate all central store or
109.27supply rooms serving more than one agency;
109.28    (3) investigate and study the management and organization of agencies, and
109.29reorganize them when necessary to ensure their effective and efficient operation;
109.30    (4) manage and control state property, real and personal;
109.31    (5) maintain and operate all state buildings, as described in section 16B.24,
109.32subdivision 1
;
109.33    (6) supervise, control, review, and approve all capital improvements to state
109.34buildings and the capitol building and grounds;
109.35    (7) provide central duplicating, printing, and mail facilities;
109.36    (8) oversee publication of official documents and provide for their sale;
110.1    (9) manage and operate parking facilities for state employees and a central motor
110.2pool for travel on state business;
110.3    (10) provide rental space within the capitol complex for a private day care center for
110.4children of state employees. The commissioner shall contract for services as provided
110.5in this chapter; and
110.6(11) settle state employee workers' compensation claims.; and
110.7(12) operate a state recycling center.
110.8EFFECTIVE DATE.This section is effective July 1, 2010.

110.9    Sec. 27. Minnesota Statutes 2008, section 16B.48, subdivision 2, is amended to read:
110.10    Subd. 2. Purpose of funds. Money in the state treasury credited to the general
110.11services revolving fund and money that is deposited in the fund is appropriated annually to
110.12the commissioner for the following purposes:
110.13(1) to operate a central store and equipment service;
110.14(2) to operate the central mailing service, including purchasing postage and related
110.15items and refunding postage deposits;
110.16(3) to operate a documents service as prescribed by section 16B.51;
110.17(4) to provide services for the maintenance, operation, and upkeep of buildings and
110.18grounds managed by the commissioner of administration;
110.19(5) to operate a materials handling service, including interagency mail and product
110.20delivery, solid waste removal, courier service, equipment rental, and vehicle and
110.21equipment maintenance;
110.22(6) to provide analytical, statistical, and organizational development services to
110.23state agencies, local units of government, metropolitan and regional agencies, and school
110.24districts;
110.25(7) to operate a records center and provide micrographics products and services; and
110.26(8) to perform services for any other agency. Money may be expended for this
110.27purpose only when directed by the governor. The agency receiving the services shall
110.28reimburse the fund for their cost, and the commissioner shall make the appropriate
110.29transfers when requested. The term "services" as used in this clause means compensation
110.30paid officers and employees of the state government; supplies, materials, equipment,
110.31and other articles and things used by or furnished to an agency; and utility services and
110.32other services for the maintenance, operation, and upkeep of buildings and offices of
110.33the state government.; and
110.34(9) to operate a state recycling center.
111.1EFFECTIVE DATE.This section is effective July 1, 2010.

111.2    Sec. 28. Minnesota Statutes 2008, section 115A.15, subdivision 6, is amended to read:
111.3    Subd. 6. Use of funds. All funds appropriated by the state for the resource recovery
111.4program, all revenues resulting from the sale of recyclable and reusable commodities made
111.5available for sale as a result of the resource recovery program, and all reimbursements
111.6to the commissioner of expenses incurred by the commissioner in developing and
111.7administering resource recovery systems for state agencies, governmental units, and
111.8nonprofit organizations must be deposited in the general fund. The commissioner shall
111.9determine the waste disposal cost savings associated with recycling and reuse activities.
111.10will be used by the service provider to offset the cost of the recycling.
111.11EFFECTIVE DATE.This section is effective July 1, 2010.

111.12    Sec. 29. Minnesota Statutes 2009 Supplement, section 270C.145, is amended to read:
111.13270C.145 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
111.14$855,000 in fiscal year 2010; $853,000 in fiscal year 2011; and $2,519,000 in each
111.15fiscal year 2012 through 2019 is The following amounts are appropriated from the general
111.16fund to the commissioner to make payments under a lease-purchase agreement as defined
111.17in section 16A.81 for completing the purchase and development of an integrated tax
111.18software package; provided that the state is not obligated to continue the appropriation of
111.19funds or to make lease payments in any future fiscal year.
111.20
Fiscal year 2010
$ 670,213
111.21
Fiscal year 2011
$ 748,550
111.22
Fiscal year 2012
$ 2,250,150
111.23
Fiscal year 2013
$ 2,251,550
111.24
Fiscal year 2014
$ 2,250,350
111.25
Fiscal year 2015
$ 2,251,550
111.26
Fiscal year 2016
$ 2,249,950
111.27
Fiscal year 2017
$ 2,251,250
111.28
Fiscal year 2018
$ 2,249,000
111.29
Fiscal year 2019
$ 2,247,000
111.30 Any unexpended portions of this appropriation cancel to the general fund at the
111.31close of each biennium. This section expires June 30, 2019.
111.32EFFECTIVE DATE.This section is effective the day following final enactment.

112.1    Sec. 30. Minnesota Statutes 2009 Supplement, section 289A.08, subdivision 16,
112.2is amended to read:
112.3    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee
112.4imposed. (a) A "tax refund or return preparer," as defined in section 289A.60, subdivision
112.513
, paragraph (f), who prepared is a tax return preparer for purposes of section 6011(e)
112.6of the Internal Revenue Code, and who reasonably expects to prepare more than 100
112.7ten Minnesota individual income tax returns for the prior calendar year must file all
112.8Minnesota individual income tax returns prepared for the current that calendar year by
112.9electronic means.
112.10(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
112.11that the taxpayer did not want the return filed by electronic means.
112.12(c) For each return that is not filed electronically by a tax refund or return preparer
112.13under this subdivision, including returns filed under paragraph (b), a paper filing fee
112.14of $5 is imposed upon the preparer. The fee is collected from the preparer in the same
112.15manner as income tax. The fee does not apply to returns that the commissioner requires
112.16to be filed in paper form.
112.17EFFECTIVE DATE.This section is effective for tax returns filed after December
112.1831, 2010.

112.19    Sec. 31. Laws 2009, chapter 101, article 1, section 31, is amended to read:
112.20    Sec. 31. PROBLEM GAMBLING APPROPRIATION.
112.21    $225,000 in fiscal year 2010 and $225,000 $175,000 in fiscal year 2011 are
112.22appropriated from the lottery prize fund to the Gambling Control Board for a grant to the
112.23state affiliate recognized by the National Council on Problem Gambling. The affiliate
112.24must provide services to increase public awareness of problem gambling, education
112.25and training for individuals and organizations providing effective treatment services to
112.26problem gamblers and their families, and research relating to problem gambling. These
112.27services must be complimentary to and not duplicative of the services provided through
112.28the problem gambling program administered by the commissioner of human services. Of
112.29this appropriation, $50,000 in fiscal year 2010 and $50,000 in fiscal year 2011 are is
112.30contingent on the contribution of nonstate matching funds. Matching funds may be either
112.31cash or qualifying in-kind contributions. The commissioner of finance may disburse the
112.32state portion of the matching funds in increments of $25,000 upon receipt of a commitment
112.33for an equal amount of matching nonstate funds. These are onetime appropriations.

113.1ARTICLE 11
113.2PROPERTY TAXES, AIDS, AND PAYMENTS

113.3    Section 1. Minnesota Statutes 2008, section 97A.061, is amended by adding a
113.4subdivision to read:
113.5    Subd. 6. Reduction. Beginning in 2010, the amount of an annual payment to a
113.6county under this section is the amount determined under subdivisions 1 to 5, reduced
113.7by six percent.
113.8EFFECTIVE DATE.This section is effective for payment made to counties in
113.92010 and thereafter.

113.10    Sec. 2. Minnesota Statutes 2008, section 272.02, subdivision 42, is amended to read:
113.11    Subd. 42. Property leased to school districts schools. (a) Property that is leased or
113.12rented to a school district is exempt from taxation if it meets the following requirements:
113.13(1) the lease must be for a period of at least 12 consecutive months;
113.14(2) the terms of the lease must require the school district to pay a nominal
113.15consideration for use of the building;
113.16(3) the school district must use the property to provide direct instruction in any
113.17grade from kindergarten through grade 12; special education for disabled children; adult
113.18basic education as described in section 124D.52; preschool and early childhood family
113.19education; or community education programs, including provision of administrative
113.20services directly related to the educational program at that site; and
113.21(4) the lease must provide that the school district has the exclusive use of the
113.22property during the lease period.
113.23(b) Property that is leased or rented to a charter school formed and operated under
113.24section 124D.10 is exempt from taxation if it meets all of the following requirements:
113.25(1) the lease is for a period of at least 12 consecutive months;
113.26(2) the charter school must use the property to provide direct instruction in any grade
113.27from kindergarten through grade 12, to provide special education for disabled children,
113.28or to provide administrative services directly related to the educational program at that
113.29site; and
113.30(3) except for lease provisions that allow for the shared use of the property by the
113.31charter school and another public or private school, by the charter school and a church,
113.32or by the charter school and the state or a political subdivision of the state, the lease
113.33must provide that the charter school has the exclusive right to use the property during
113.34the lease period.
114.1EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
114.2thereafter.

114.3    Sec. 3. Minnesota Statutes 2008, section 273.1384, is amended by adding a subdivision
114.4to read:
114.5    Subd. 6. Credit reduction. In 2011 and thereafter, the annual market value credit
114.6reimbursement amount for each taxing jurisdiction determined under subdivisions 1 to 5 is
114.7reduced by the dollar amount of the reduction in market value credit reimbursements for
114.8that taxing jurisdiction in 2010 due to allotment reductions under section 16A.152 and
114.9the reductions under section 477A.0133. No taxing jurisdiction's market value credit
114.10reimbursements are reduced to less than zero under this subdivision. The commissioner of
114.11revenue shall pay the annual market value credit reimbursement amounts, after reduction
114.12under this subdivision, to the affected taxing jurisdictions as provided in this section.
114.13EFFECTIVE DATE.This section is effective the day following final enactment.

114.14    Sec. 4. Minnesota Statutes 2009 Supplement, section 275.70, subdivision 5, is
114.15amended to read:
114.16    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes
114.17levied by a local governmental unit for the following purposes or in the following manner:
114.18    (1) to pay the costs of the principal and interest on bonded indebtedness or to
114.19reimburse for the amount of liquor store revenues used to pay the principal and interest
114.20due on municipal liquor store bonds in the year preceding the year for which the levy
114.21limit is calculated;
114.22    (2) to pay the costs of principal and interest on certificates of indebtedness issued for
114.23any corporate purpose except for the following:
114.24    (i) tax anticipation or aid anticipation certificates of indebtedness;
114.25    (ii) certificates of indebtedness issued under sections 298.28 and 298.282;
114.26    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
114.27extraordinary expenditures that result from a public emergency; or
114.28    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or
114.29an insufficiency in other revenue sources;
114.30    (3) to provide for the bonded indebtedness portion of payments made to another
114.31political subdivision of the state of Minnesota;
114.32    (4) to fund payments made to the Minnesota State Armory Building Commission
114.33under section 193.145, subdivision 2, to retire the principal and interest on armory
114.34construction bonds;
115.1    (5) property taxes approved by voters which are levied against the referendum
115.2market value as provided under section 275.61;
115.3    (6) to fund matching requirements needed to qualify for federal or state grants or
115.4programs to the extent that either (i) the matching requirement exceeds the matching
115.5requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
115.6exist prior to 2002;
115.7    (7) to pay the expenses reasonably and necessarily incurred in preparing for or
115.8repairing the effects of natural disaster including the occurrence or threat of widespread
115.9or severe damage, injury, or loss of life or property resulting from natural causes, in
115.10accordance with standards formulated by the Emergency Services Division of the state
115.11Department of Public Safety, as allowed by the commissioner of revenue under section
115.12275.74, subdivision 2 ;
115.13    (8) pay amounts required to correct an error in the levy certified to the county
115.14auditor by a city or county in a levy year, but only to the extent that when added to the
115.15preceding year's levy it is not in excess of an applicable statutory, special law or charter
115.16limitation, or the limitation imposed on the governmental subdivision by sections 275.70
115.17to 275.74 in the preceding levy year;
115.18    (9) to pay an abatement under section 469.1815;
115.19    (10) to pay any costs attributable to increases in the employer contribution rates
115.20under chapter 353, or locally administered pension plans, that are effective after June
115.2130, 2001;
115.22    (11) to pay the operating or maintenance costs of a county jail as authorized in
115.23section 641.01 or 641.262, or of a correctional facility as defined in section 241.021,
115.24subdivision 1
, paragraph (f), to the extent that the county can demonstrate to the
115.25commissioner of revenue that the amount has been included in the county budget as
115.26a direct result of a rule, minimum requirement, minimum standard, or directive of the
115.27Department of Corrections, or to pay the operating or maintenance costs of a regional jail
115.28as authorized in section 641.262. For purposes of this clause, a district court order is
115.29not a rule, minimum requirement, minimum standard, or directive of the Department of
115.30Corrections. If the county utilizes this special levy, except to pay operating or maintenance
115.31costs of a new regional jail facility under sections 641.262 to 641.264 which will not
115.32replace an existing jail facility, any amount levied by the county in the previous levy year
115.33for the purposes specified under this clause and included in the county's previous year's
115.34levy limitation computed under section 275.71, shall be deducted from the levy limit
115.35base under section 275.71, subdivision 2, when determining the county's current year
116.1levy limitation. The county shall provide the necessary information to the commissioner
116.2of revenue for making this determination;
116.3    (12) to pay for operation of a lake improvement district, as authorized under section
116.4103B.555 . If the county utilizes this special levy, any amount levied by the county in the
116.5previous levy year for the purposes specified under this clause and included in the county's
116.6previous year's levy limitation computed under section 275.71 shall be deducted from
116.7the levy limit base under section 275.71, subdivision 2, when determining the county's
116.8current year levy limitation. The county shall provide the necessary information to the
116.9commissioner of revenue for making this determination;
116.10    (13) to repay a state or federal loan used to fund the direct or indirect required
116.11spending by the local government due to a state or federal transportation project or other
116.12state or federal capital project. This authority may only be used if the project is not a
116.13local government initiative;
116.14    (14) to pay for court administration costs as required under section 273.1398,
116.15subdivision 4b
, less the (i) county's share of transferred fines and fees collected by the
116.16district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
116.17paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
116.18levied to pay for these costs in the year in which the court financing is transferred to the
116.19state, the amount under this clause is limited to the amount of aid the county is certified to
116.20receive under section 273.1398, subdivision 4a;
116.21    (15) to fund a police or firefighters relief association as required under section 69.77
116.22to the extent that the required amount exceeds the amount levied for this purpose in 2001;
116.23    (16) for purposes of a storm sewer improvement district under section 444.20;
116.24    (17) to pay for the maintenance and support of a city or county society for the
116.25prevention of cruelty to animals under section 343.11, but not to exceed in any year
116.26$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
116.27recent federal census, whichever is greater. If the city or county uses this special levy, any
116.28amount levied by the city or county in the previous levy year for the purposes specified
116.29in this clause and included in the city's or county's previous year's levy limit computed
116.30under section 275.71, must be deducted from the levy limit base under section 275.71,
116.31subdivision 2
, in determining the city's or county's current year levy limit;
116.32    (18) for counties, to pay for the increase in their share of health and human service
116.33costs caused by reductions in federal health and human services grants effective after
116.34September 30, 2007;
116.35    (19) for a city, for the costs reasonably and necessarily incurred for securing,
116.36maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
117.1the commissioner of revenue under section 275.74, subdivision 2. A city must have either
117.2(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
117.3the city or in a zip code area of the city that is at least 50 percent higher than the average
117.4foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
117.5to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
117.6number of foreclosures, as indicated by sheriff sales records, divided by the number of
117.7households in the city in 2007;
117.8    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
117.9lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
117.10to the Federal Highway Administration;
117.11    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
117.12personnel. If a local governmental unit did not use this special levy in the previous year its
117.13levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
117.14levied for the purposes specified in this clause in the previous year;
117.15    (22) an amount equal to 50 percent of any reductions in the certified aids or credits
117.16payable under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment
117.17under section 16A.152 or 477A.0133. In the case of an unallotment, the amount of
117.18the levy allowed under this clause is equal to the amount unallotted or reduced in the
117.19calendar year in which the tax is levied unless the unallotment amount is not known by
117.20September 1 of the levy year, and the local government has not adjusted its levy under
117.21section 275.065, subdivision 6, or 275.07, subdivision 6, in which case the unallotment
117.22amount may be levied in the following year;
117.23(23) to pay for the difference between one-half of the costs of confining sex offenders
117.24undergoing the civil commitment process and any state payments for this purpose pursuant
117.25to section 253B.185, subdivision 5;
117.26(24) for a county to pay the costs of the first year of maintaining and operating a new
117.27facility or new expansion, either of which contains courts, corrections, dispatch, criminal
117.28investigation labs, or other public safety facilities and for which all or a portion of the
117.29funding for the site acquisition, building design, site preparation, construction, and related
117.30equipment was issued or authorized prior to the imposition of levy limits in 2008. The
117.31levy limit base shall then be increased by an amount equal to the new facility's first full
117.32year's operating costs as described in this clause; and
117.33(25) for 50 percent of the estimated amount of reduction to credits under section
117.34273.1384 for credits payable in the year in which the levy is payable.
117.35EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
117.36thereafter.

118.1    Sec. 5. Minnesota Statutes 2008, section 275.71, subdivision 5, is amended to read:
118.2    Subd. 5. Property tax levy limit. For taxes levied in 2008 through 2010, (a) The
118.3property tax levy limit for a local governmental unit is equal to its adjusted levy limit
118.4base determined under subdivision 4 plus any additional levy authorized under section
118.5275.73 , which is levied against net tax capacity, reduced by the sum of (i) the total amount
118.6of aids and reimbursements that the local governmental unit is certified to receive under
118.7sections 477A.011 to 477A.014, (ii) taconite aids under sections 298.28 and 298.282
118.8including any aid which was required to be placed in a special fund for expenditure in
118.9the next succeeding year, (iii) estimated payments to the local governmental unit under
118.10section 272.029, adjusted for any error in estimation in the preceding year, and (iv) aids
118.11under section 477A.16.
118.12(b) If an aid, payment, or other amount used in paragraph (a) to reduce a local
118.13government unit's levy limit is reduced by allotment reduction under section 16A.152,
118.14the amount of the aid, payment, or other amount prior to unallotment is used in the
118.15computations in paragraph (a). In order for a local government unit to levy outside of its
118.16limit to offset a reduction attributable to unallotment, it must do so under, and to the extent
118.17authorized by, a special levy authority. If any amount in paragraph (a), items (i) to (iv),
118.18has decreased from the corresponding amount for the prior year other than because of an
118.19allotment reduction under section 16A.152, an amount equal to one-half of that decrease
118.20must be subtracted from the result obtained under paragraph (a).
118.21EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
118.22thereafter.

118.23    Sec. 6. Minnesota Statutes 2009 Supplement, section 290C.07, is amended to read:
118.24290C.07 CALCULATION OF INCENTIVE PAYMENT.
118.25    An approved claimant under the sustainable forest incentive program is eligible to
118.26receive an annual payment. The payment shall equal the greater of:
118.27    (1) the difference between the property tax that would be paid on the land using the
118.28previous year's statewide average total township tax rate and a class rate of one percent, if
118.29the land were valued at (i) the average statewide managed forest land market value per
118.30acre calculated under section 290C.06, and (ii) the average statewide managed forest land
118.31current use value per acre calculated under section 290C.02, subdivision 5; or
118.32    (2) two-thirds of the property tax amount determined by using the previous year's
118.33statewide average total township tax rate, the estimated market value per acre as calculated
118.34in section 290C.06, and a class rate of one percent, provided that the payment shall be no
119.1less than $7 per acre for each acre enrolled in the sustainable forest incentive program and
119.2the maximum payment per each Social Security Number or state or federal business tax
119.3identification number shall not exceed $100,000.
119.4EFFECTIVE DATE.This section is effective for payments made after June 30,
119.52011, based on certifications due in 2011 and thereafter.

119.6    Sec. 7. Minnesota Statutes 2008, section 477A.013, subdivision 9, is amended to read:
119.7    Subd. 9. City aid distribution. (a) In calendar year 2009 and thereafter, Each
119.8city shall receive an aid distribution equal to the sum of (1) the city formula aid under
119.9subdivision 8, and (2) its city aid base.
119.10    (b) For aids payable in 2009 2011 only, the total aid for any city shall not exceed
119.11the sum of (1) 35 percent of the city's net levy for the year prior to the aid distribution,
119.12plus (2) its total aid in the previous year. For aid payable in 2011 only, the total aid for
119.13any city with a population of 2,500 or more may not be less than its total aid under this
119.14section in the previous year minus the lesser of $125 multiplied by its population, or 50
119.15percent of its net levy in the year prior to the aid distribution. The total aid for a city with
119.16a population less than 2,500 must not be less than the amount it was certified to receive
119.17in the previous year minus the lesser of $125 multiplied by its population, or 40 percent
119.18of its 2003 certified aid amount.
119.19    (c) For aids payable in 2010 2012 and thereafter, the total aid for any city shall
119.20not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid
119.21distribution plus (2) its total aid in the previous year. For aids payable in 2009 2012 and
119.22thereafter, the total aid for any city with a population of 2,500 or more may not be less
119.23than its total aid under this section in the previous year minus the lesser of $10 multiplied
119.24by its population, or ten percent of its net levy in the year prior to the aid distribution.
119.25    (d) For aids payable in 2010 2012 and thereafter, the total aid for a city with a
119.26population less than 2,500 must not be less than the amount it was certified to receive in
119.27the previous year minus the lesser of $10 multiplied by its population, or five percent of its
119.282003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
119.29population less than 2,500 must not be less than what it received under this section in the
119.30previous year unless its total aid in calendar year 2008 was aid under section 477A.011,
119.31subdivision 36, paragraph (s), in which case its minimum aid is zero.
119.32    (e) For aid payable in 2012 and thereafter, a city's aid loss under this section may
119.33not exceed $300,000 in any year in which the total city aid appropriation under section
119.34477A.03, subdivision 2a , is equal or greater than the appropriation under that subdivision
120.1in the previous year, unless the city has an adjustment in its city net tax capacity under
120.2the process described in section 469.174, subdivision 28.
120.3    (f) If a city's net tax capacity used in calculating aid under this section has decreased
120.4in any year by more than 25 percent from its net tax capacity in the previous year due to
120.5property becoming tax-exempt Indian land, the city's maximum allowed aid increase
120.6under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
120.7year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
120.8resulting from the property becoming tax exempt.
120.9EFFECTIVE DATE.This section is effective for aid payable in 2011 and thereafter.

120.10    Sec. 8. [477A.0133] ADDITIONAL 2010 AID AND REDUCTIONS.
120.11    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
120.12have the meanings given them in this subdivision.
120.13(b) The "2010 revenue base" for a county is the sum of the county's certified property
120.14tax levy for taxes payable in 2010, plus the amount of county program aid under section
120.15477A.0124 that the county was certified to receive in 2010, plus the amount of taconite
120.16aids under sections 298.28 and 298.282 that the county was certified to receive in 2010
120.17including any amounts required to be placed in a special fund for distribution in a later year.
120.18(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of
120.19the city's certified property tax levy for taxes payable in 2010, plus the amount of local
120.20government aid under section 477A.013, subdivision 9, that the city was certified to
120.21receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that
120.22the city was certified to receive in 2010 including any amounts required to be placed in a
120.23special fund for distribution in a later year.
120.24    Subd. 2. 2010 reductions; counties, cities, and towns. After implementing any
120.25reduction of county program aid under section 477A.0124, local government aid under
120.26section 477A.013, or market value credit reimbursements under section 273.1384, for
120.27amounts payable in 2010 to reflect the reduction of allotments under section 16A.152, the
120.28commissioner of revenue must compute the additional aid reduction amounts for each
120.29county and city provided under this section.
120.30The additional reduction amounts under this section are limited to the sum of the
120.31amount of county program aid under section 477A.0124, local government aid under
120.32section 477A.013, and market value credit reimbursements under section 273.1384
120.33payable to the county or city in 2010 before the reductions in this section, but after the
120.34reductions for unallotments.
121.1The reduction amount under this section is applied first to reduce the amount payable
121.2as either county program aid under section 477A.0124, in the case of a county, or local
121.3government aid under section 477A.013, in the case of a city, and then, if necessary,
121.4to reduce the amount payable to the county or city in 2010 as market value credit
121.5reimbursements under section 273.1384.
121.6No aid or reimbursement amount is reduced to less than zero under this section.
121.7The additional 2010 aid reduction amount for a county is equal to 4.354 percent of
121.8the county's 2010 revenue base. The additional 2010 aid reduction amount for a city is
121.9equal to 8.158 percent of the city's 2010 revenue base.
121.10EFFECTIVE DATE.This section is effective the day following final enactment.

121.11    Sec. 9. Minnesota Statutes 2008, section 477A.03, subdivision 2a, is amended to read:
121.12    Subd. 2a. Cities. For aids payable in 2009 2011 and thereafter, the total aid
121.13paid under section 477A.013, subdivision 9, is $526,148,487, subject to adjustment in
121.14subdivision 5 $337,640,792.
121.15EFFECTIVE DATE.This section is effective for aids payable in 2011 and
121.16thereafter.

121.17    Sec. 10. Minnesota Statutes 2008, section 477A.03, subdivision 2b, is amended to read:
121.18    Subd. 2b. Counties. (a) For aids payable in 2009 2011 and thereafter, the total aid
121.19payable under section 477A.0124, subdivision 3, is $111,500,000 minus one-half of the
121.20total aid amount determined under section 477A.0124, subdivision 5, paragraph (b),
121.21subject to adjustment in subdivision 5 $33,059,086. Each calendar year, $500,000 shall be
121.22retained by the commissioner of revenue to make reimbursements to the commissioner of
121.23management and budget for payments made under section 611.27. For calendar year 2004,
121.24the amount shall be in addition to the payments authorized under section 477A.0124,
121.25subdivision 1
. For calendar year 2005 and subsequent years, the amount shall be deducted
121.26from the appropriation under this paragraph. The reimbursements shall be to defray the
121.27additional costs associated with court-ordered counsel under section 611.27. Any retained
121.28amounts not used for reimbursement in a year shall be included in the next distribution
121.29of county need aid that is certified to the county auditors for the purpose of property tax
121.30reduction for the next taxes payable year.
121.31    (b) For aids payable in 2009 2011 and thereafter, the total aid under section
121.32477A.0124, subdivision 4 , is $116,132,923 minus one-half of the total aid amount
121.33determined under section 477A.0124, subdivision 5, paragraph (b), subject to adjustment
122.1in subdivision 5 $34,082,538. The commissioner of management and budget shall bill the
122.2commissioner of revenue for the cost of preparation of local impact notes as required by
122.3section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner
122.4of education shall bill the commissioner of revenue for the cost of preparation of local
122.5impact notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal
122.6year 2004 and thereafter. The commissioner of revenue shall deduct the amounts billed
122.7under this paragraph from the appropriation under this paragraph. The amounts deducted
122.8are appropriated to the commissioner of management and budget and the commissioner of
122.9education for the preparation of local impact notes.
122.10EFFECTIVE DATE.This section is effective for aids payable in 2011 and
122.11thereafter.

122.12    Sec. 11. Minnesota Statutes 2008, section 477A.12, is amended by adding a
122.13subdivision to read:
122.14    Subd. 4. Reduction. Beginning in 2010, the amount of an annual payment to
122.15a county under this section is the amount determined under subdivision 1 to 3, reduced
122.16by six percent.
122.17EFFECTIVE DATE.This section is effective for payment made to counties in
122.182010 and thereafter.

122.19    Sec. 12. Minnesota Statutes 2008, section 477A.14, is amended by adding a
122.20subdivision to read:
122.21    Subd. 3. Reduction. Beginning in 2010, the monetary amounts per acre specified in
122.22subdivisions 1 and 2, are reduced by six percent.
122.23EFFECTIVE DATE.This section is effective for payment and distributions made
122.24in 2010 and thereafter.

122.25    Sec. 13. Laws 2008, chapter 366, article 3, section 3, the effective date, is amended to
122.26read:
122.27EFFECTIVE DATE.This section is effective for levies certified in calendar years
122.282008 through 2010, payable in 2009 through 2011, and thereafter.
122.29EFFECTIVE DATE.This section is effective the day following final enactment.

123.1    Sec. 14. Laws 2008, chapter 366, article 3, section 4, the effective date, is amended to
123.2read:
123.3EFFECTIVE DATE.This section is effective for levies certified in 2008 through
123.42010, payable in 2009 through 2011, and thereafter.
123.5EFFECTIVE DATE.This section is effective the day following final enactment.

123.6    Sec. 15. REPEALER.
123.7Minnesota Statutes 2008, section 477A.03, subdivision 5, is repealed.
123.8EFFECTIVE DATE.This section is effective for aids payable in 2011 and
123.9thereafter.

123.10ARTICLE 12
123.11POLITICAL CONTRIBUTION REFUNDS

123.12    Section 1. Minnesota Statutes 2008, section 270A.03, subdivision 7, is amended to
123.13read:
123.14    Subd. 7. Refund. "Refund" means an individual income tax refund or political
123.15contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
123.16chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.
123.17For purposes of this chapter, lottery prizes, as set forth in section 349A.08,
123.18subdivision 8
, and amounts granted to persons by the legislature on the recommendation
123.19of the joint senate-house of representatives Subcommittee on Claims shall be treated
123.20as refunds.
123.21In the case of a joint property tax refund payable to spouses under chapter 290A,
123.22the refund shall be considered as belonging to each spouse in the proportion of the total
123.23refund that equals each spouse's proportion of the total income determined under section
123.24290A.03, subdivision 3 . In the case of a joint income tax refund under chapter 289A, the
123.25refund shall be considered as belonging to each spouse in the proportion of the total
123.26refund that equals each spouse's proportion of the total taxable income determined under
123.27section 290.01, subdivision 29. The commissioner shall remit the entire refund to the
123.28claimant agency, which shall, upon the request of the spouse who does not owe the debt,
123.29determine the amount of the refund belonging to that spouse and refund the amount to
123.30that spouse. For court fines, fees, and surcharges and court-ordered restitution under
123.31section 611A.04, subdivision 2, the notice provided by the commissioner of revenue under
124.1section 270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice
124.2to the spouse who does not owe the debt.
124.3EFFECTIVE DATE.This section is effective for political contribution refund
124.4claims based on contributions that are made after June 30, 2011.

124.5    Sec. 2. Minnesota Statutes 2008, section 289A.50, subdivision 1, is amended to read:
124.6    Subdivision 1. General right to refund. (a) Subject to the requirements of this
124.7section and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully
124.8due and who files a written claim for refund will be refunded or credited the overpayment
124.9of the tax determined by the commissioner to be erroneously paid.
124.10(b) The claim must specify the name of the taxpayer, the date when and the period
124.11for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
124.12claims was erroneously paid, the grounds on which a refund is claimed, and other
124.13information relative to the payment and in the form required by the commissioner. An
124.14income tax, estate tax, or corporate franchise tax return, or amended return claiming an
124.15overpayment constitutes a claim for refund.
124.16(c) When, in the course of an examination, and within the time for requesting a
124.17refund, the commissioner determines that there has been an overpayment of tax, the
124.18commissioner shall refund or credit the overpayment to the taxpayer and no demand
124.19is necessary. If the overpayment exceeds $1, the amount of the overpayment must
124.20be refunded to the taxpayer. If the amount of the overpayment is less than $1, the
124.21commissioner is not required to refund. In these situations, the commissioner does not
124.22have to make written findings or serve notice by mail to the taxpayer.
124.23(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
124.24care exceeds the tax against which the credit is allowable, the amount of the excess is
124.25considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
124.26considered an overpayment. The requirements of section 270C.33 do not apply to the
124.27refunding of such an overpayment shown on the original return filed by a taxpayer.
124.28(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
124.29penalties, and interest reported in the return of the entertainment entity or imposed by
124.30section 290.9201, the excess must be refunded to the entertainment entity. If the excess is
124.31less than $1, the commissioner need not refund that amount.
124.32(f) If the surety deposit required for a construction contract exceeds the liability of
124.33the out-of-state contractor, the commissioner shall refund the difference to the contractor.
124.34(g) An action of the commissioner in refunding the amount of the overpayment does
124.35not constitute a determination of the correctness of the return of the taxpayer.
125.1(h) There is appropriated from the general fund to the commissioner of revenue the
125.2amount necessary to pay refunds allowed under this section.
125.3EFFECTIVE DATE.This section is effective for political contribution refund
125.4claims based on contributions that are made after June 30, 2011.

125.5    Sec. 3. Minnesota Statutes 2008, section 290.01, subdivision 6, is amended to read:
125.6    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to
125.7a tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
125.8"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
125.9EFFECTIVE DATE.This section is effective for political contribution refund
125.10claims based on contributions that are made after June 30, 2011.

125.11    Sec. 4. Minnesota Statutes 2008, section 290A.03, subdivision 11, is amended to read:
125.12    Subd. 11. Rent constituting property taxes. "Rent constituting property taxes"
125.13means 19 15 percent of the gross rent actually paid in cash, or its equivalent, or the portion
125.14of rent paid in lieu of property taxes, in any calendar year by a claimant for the right
125.15of occupancy of the claimant's Minnesota homestead in the calendar year, and which
125.16rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
125.17chapter by the claimant.
125.18EFFECTIVE DATE.This section is effective for property tax refunds based on
125.19rent paid after December 31, 2009.

125.20    Sec. 5. Minnesota Statutes 2008, section 290A.03, subdivision 13, is amended to read:
125.21    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
125.22exclusive of special assessments, penalties, and interest payable on a claimant's homestead
125.23after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
125.24and any other state paid property tax credits in any calendar year, and after any refund
125.25claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
125.26the year that the property tax is payable. In the case of a claimant who makes ground
125.27lease payments, "property taxes payable" includes the amount of the payments directly
125.28attributable to the property taxes assessed against the parcel on which the house is located.
125.29No apportionment or reduction of the "property taxes payable" shall be required for the
125.30use of a portion of the claimant's homestead for a business purpose if the claimant does not
125.31deduct any business depreciation expenses for the use of a portion of the homestead in the
125.32determination of federal adjusted gross income. For homesteads which are manufactured
126.1homes as defined in section 273.125, subdivision 8, and for homesteads which are park
126.2trailers taxed as manufactured homes under section 168.012, subdivision 9, "property
126.3taxes payable" shall also include 19 15 percent of the gross rent paid in the preceding
126.4year for the site on which the homestead is located. When a homestead is owned by
126.5two or more persons as joint tenants or tenants in common, such tenants shall determine
126.6between them which tenant may claim the property taxes payable on the homestead. If
126.7they are unable to agree, the matter shall be referred to the commissioner of revenue
126.8whose decision shall be final. Property taxes are considered payable in the year prescribed
126.9by law for payment of the taxes.
126.10In the case of a claim relating to "property taxes payable," the claimant must have
126.11owned and occupied the homestead on January 2 of the year in which the tax is payable
126.12and (i) the property must have been classified as homestead property pursuant to section
126.13273.124 , on or before December 15 of the assessment year to which the "property taxes
126.14payable" relate; or (ii) the claimant must provide documentation from the local assessor
126.15that application for homestead classification has been made on or before December 15
126.16of the year in which the "property taxes payable" were payable and that the assessor has
126.17approved the application.
126.18EFFECTIVE DATE.This section is effective for property tax refunds based upon
126.19rent paid after December 31, 2009, and upon property taxes payable in 2011 and thereafter.

126.20    Sec. 6. REPEALER.
126.21(a) Minnesota Statutes 2008, sections 10A.322, subdivision 4; and 13.4967,
126.22subdivision 2, are repealed.
126.23(b) Minnesota Statutes 2008, section 290.06, subdivision 23, is repealed.
126.24EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
126.25Paragraph (b) is effective for refund claims based on contributions made after June 30,
126.262011.

126.27ARTICLE 13
126.28SPECIAL TIMING ACCOUNT

126.29    Section 1. REPEALER.
126.30Laws 2009, chapter 88, article 12, section 21, is repealed.
126.31EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

127.1ARTICLE 14
127.2HIGHER EDUCATION UNALLOTMENT RATIFICATION

127.3
Section 1. SUMMARY OF APPROPRIATIONS.
127.4    Subdivision 1. Summary Total. The amounts shown in this section summarize
127.5direct appropriations, by fund, made in this article.
127.6
2010
2011
Total
127.7
General
$
(77,000)
$
(100,077,000)
$
(100,154,000)
127.8
Total
$
(77,000)
$
(100,077,000)
$
(100,154,000)
127.9    Subd. 2. Summary by Agency - All Funds. The amounts shown in this subdivision
127.10summarize direct appropriations, by agency, made in this article.
127.11
2010
2011
Total
127.12
127.13
Minnesota Office of Higher
Education
$
(77,000)
$
(77,000)
$
(154,000)
127.14
Mayo Medical Foundation
-0-
-0-
-0-
127.15
127.16
127.17
Board of Trustees of the
Minnesota State Colleges and
Universities
-0-
(50,000,000)
(50,000,000)
127.18
127.19
Board of Regents of the
University of Minnesota
-0-
(50,000,000)
(50,000,000)
127.20
Board of Dentistry
-0-
-0-
-0-
127.21
Total
$
(77,000)
$
(100,077,000)
$
(100,154,000)

127.22
Sec. 2. APPROPRIATIONS.
127.23The sums shown in the columns marked "Appropriations" are added to or, if shown
127.24in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to
127.25the agencies and for the purposes specified in this article. The appropriations are from the
127.26general fund, or another named fund, and are available for the fiscal years indicated for
127.27each purpose. The figures "2010" and "2011" used in this article mean that the addition
127.28to or subtraction from the appropriation listed under them is available for the fiscal year
127.29ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
127.30reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day
127.31following final enactment. The appropriation reductions in this article include, and are not
127.32in addition to, appropriation changes and reductions that have been implemented under
127.33the commissioner of management and budget's unallotment actions that commenced
127.34in July 2009.
127.35
APPROPRIATIONS
127.36
Available for the Year
128.1
Ending June 30
128.2
2010
2011

128.3
128.4
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
$
(77,000)
$
(77,000)
128.5This reduction is from the appropriation for
128.6agency administration.

128.7
128.8
128.9
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
$
-0-
$
(50,000,000)
128.10$3,579,000 of the reduction in 2011 is from
128.11the central offices and shared services unit
128.12appropriation.
128.13$46,421,000 of the reduction in 2011
128.14is from the operations and maintenance
128.15appropriation.
128.16For fiscal years 2012 and 2013, the base for
128.17operations and maintenance is reduced by
128.18$46,421,000 each year.

128.19
128.20
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
128.21
Subdivision 1.Total Appropriation
$
-0-
$
(50,000,000)
128.22The appropriation reductions for each
128.23purpose are shown in the following
128.24subdivisions.
128.25
Subd. 2.Operations and Maintenance
-0-
(44,606,000)
128.26For fiscal years 2012 and 2013, the base for
128.27operations and maintenance is reduced by
128.28$44,606,000 each year.
128.29
Subd. 3.Special Appropriations
128.30
(a) Agriculture and Extension Service
-0-
(3,858,000)
128.31
(b) Health Sciences
-0-
(389,000)
129.1$26,000 of the 2011 reduction is from the St.
129.2Cloud family practice residency program.
129.3
(c) Institute of Technology
-0-
(102,000)
129.4
(d) System Special
-0-
(454,000)
129.5
129.6
(e) University of Minnesota and Mayo
Foundation Partnership
-0-
(591,000)

129.7ARTICLE 15
129.8ENVIRONMENT AND NATURAL RESOURCES UNALLOTMENT
129.9RATIFICATION

129.10
Section 1. SUMMARY OF APPROPRIATIONS.
129.11The amounts shown in this section summarize changes to direct appropriations, by
129.12fund, made in this article.
129.13
2010
2011
Total
129.14
General
$
(1,571,846)
$
(1,562,500)
$
(3,134,346)
129.15
Total
$
(1,571,846)
$
(1,562,500)
$
(3,134,346)

129.16
Sec. 2. APPROPRIATIONS.
129.17The sums shown in the columns marked "Appropriations" are added to or, if shown
129.18in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to
129.19the agencies and for the purposes specified in this article. The appropriations are from the
129.20general fund, or another named fund, and are available for the fiscal years indicated for
129.21each purpose. The figures "2010" and "2011" used in this article mean that the addition to
129.22or subtraction from the appropriation listed under them are available for the fiscal year
129.23ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
129.24reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day
129.25following final enactment. The appropriation reductions in this article include, and are not
129.26in addition to, appropriation changes and reductions that have been implemented under
129.27the commissioner of management and budget's unallotment actions that commenced
129.28in July 2009.
129.29
APPROPRIATIONS
129.30
Available for the Year
129.31
Ending June 30
129.32
2010
2011

129.33
Sec. 3. POLLUTION CONTROL AGENCY
130.1
Subdivision 1.Total Appropriation
$
(110,000)
$
(99,000)
130.2The appropriation reductions for each
130.3purpose are shown in the following
130.4subdivisions.
130.5
Subd. 2.Water
(98,000)
(38,020)
130.6The $98,000 reduction in fiscal year 2010
130.7is from the agency's activities to develop
130.8minimal impact design standards for urban
130.9stormwater runoff.
130.10
Subd. 3.Land
-0-
(30,000)
130.11The $30,000 reduction in the second year is
130.12from the environmental health tracking and
130.13biomonitoring activities of the agency.
130.14
130.15
Subd. 4.Environmental
Assistance and Cross Media
-0-
(16,240)
130.16
130.17
Subd. 5.Administrative
Support
(12,000)
(1,470)

130.18
Sec. 4. NATURAL RESOURCES
130.19
Subdivision 1.Total Appropriation
$
(1,375,846)
$
(1,377,500)
130.20The appropriation reductions for each
130.21purpose are shown in the following
130.22subdivisions.
130.23
130.24
Subd. 2.Lands and
Minerals
(30,000)
(30,000)
130.25
130.26
Subd. 3.Water Resources
Management
(84,000)
(84,000)
130.27
130.28
Subd. 4.Forest
Management
(188,000)
(188,000)
130.29$53,000 of the reduction each year is from
130.30activities supporting the Forest Resources
130.31Council with implementation of the
130.32Sustainable Forest Resources Act.
131.1
131.2
Subd. 5.Parks and Trails
Management
(429,846)
(421,500)
131.3
131.4
Subd. 6.Fish and Wildlife
Management
(265,000)
(265,000)
131.5$265,000 of the reduction each year is from
131.6activities for preserving, restoring, and
131.7enhancing grassland/wetland complexes on
131.8public or private land.
131.9
Subd. 7.Ecological Services
(46,500)
(46,500)
131.10
Subd. 8.Enforcement
(230,000)
(230,000)
131.11
131.12
Subd. 9.Operations
Support
(112,500)
(112,500)

131.13
Sec. 5. METROPOLITAN COUNCIL
$
(86,000)
$
(86,000)

131.14    Sec. 6. Minnesota Statutes 2008, section 103G.705, subdivision 2, is amended to read:
131.15    Subd. 2. Stream protection and improvement fund. There is established in the
131.16state treasury a stream protection and redevelopment fund. All repayments of loans
131.17made and administrative fees assessed under subdivision 1 must be deposited in this
131.18fund. Interest earned on money in the fund accrues to the fund and money in the fund
131.19is appropriated to the commissioner of natural resources for purposes of the stream
131.20protection and redevelopment program, including costs incurred by the commissioner to
131.21establish and administer the program. In fiscal years 2010 and 2011, all repayments of
131.22loans made and administrative fees assessed under subdivision 1 must be transferred
131.23to the general fund. This includes any balance within the fund from repayments and
131.24administrative fees assessed prior to July 1, 2009.

131.25ARTICLE 16
131.26ENERGY UNALLOTMENT RATIFICATION

131.27
Section 1. SUMMARY OF APPROPRIATIONS.
131.28The amounts shown in this section summarize direct appropriations, by fund, made
131.29in this article.
131.30
2010
2011
Total
131.31
General
$
(247,000)
$
(247,000)
$
(494,000)
131.32
Total
$
(247,000)
$
(247,000)
$
(494,000)

132.1
Sec. 2. APPROPRIATIONS.
132.2The sums shown in the columns marked "Appropriations" are added to or, if shown
132.3in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 2, to
132.4the agencies and for the purposes specified in this article. The appropriations are from the
132.5general fund, or another named fund, and are available for the fiscal years indicated for
132.6each purpose. The figures "2010" and "2011" used in this article mean that the addition
132.7to or subtraction from the appropriation listed under them is available for the fiscal year
132.8ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
132.9reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day
132.10following final enactment. The appropriation reductions in this article include, and are not
132.11in addition to, appropriation changes and reductions that have been implemented under
132.12the commissioner of management and budget's unallotment actions that commenced
132.13in July 2009.
132.14
APPROPRIATIONS
132.15
Available for the Year
132.16
Ending June 30
132.17
2010
2011

132.18
Sec. 3. DEPARTMENT OF COMMERCE
132.19
Subdivision 1.Total Appropriation
$
(247,000)
$
(247,000)
132.20The appropriation reductions for each
132.21purpose are shown in the following
132.22subdivisions.
132.23
Subd. 2.Administrative Services
(97,000)
(97,000)
132.24
Subd. 3.Market Assurance
(150,000)
(150,000)

132.25ARTICLE 17
132.26AGRICULTURE UNALLOTMENT RATIFICATION

132.27
Section 1. SUMMARY OF APPROPRIATIONS.
132.28The amounts shown in this section summarize direct appropriations, by fund, made
132.29in this article.
132.30
2010
2011
Total
132.31
General
$
(493,000)
$
(492,000)
$
(985,000)
132.32
Total
$
(493,000)
$
(492,000)
$
(985,000)

133.1
Sec. 2. AGRICULTURAL APPROPRIATIONS.
133.2The sums shown in the columns marked "Appropriations" are added to or, if shown
133.3in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 1, to
133.4the agencies and for the purposes specified in this article. The appropriations are from the
133.5general fund, or another named fund, and are available for the fiscal years indicated for
133.6each purpose. The figures "2010" and "2011" used in this article mean that the addition to
133.7or subtraction from the appropriations listed under them are available for the fiscal year
133.8ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
133.9reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day
133.10following final enactment. The appropriation reductions in this article include, and are not
133.11in addition to, appropriation changes and reductions that have been implemented under
133.12the commissioner of management and budget's unallotment actions that commenced
133.13in July 2009.
133.14
APPROPRIATIONS
133.15
Available for the Year
133.16
Ending June 30
133.17
2010
2011

133.18
Sec. 3. DEPARTMENT OF AGRICULTURE
133.19
Subdivision 1.Total Appropriation
$
(493,000)
$
(492,000)
133.20The appropriation reductions for each
133.21purpose are shown in the following
133.22subdivisions.
133.23
Subd. 2.Protection Services
(228,000)
(228,000)
133.24$13,000 in fiscal year 2010 and $13,000 in
133.25fiscal year 2011 are reductions from plant
133.26pest surveys.
133.27
133.28
Subd. 3.Agricultural Marketing and
Development
(127,000)
(127,000)
133.29$77,000 in fiscal year 2010 and $77,000 in
133.30fiscal year 2011 are reductions for integrated
133.31pest management activities.
133.32
133.33
Subd. 4.Administration and Financial
Assistance
(138,000)
(137,000)
134.1$69,000 in fiscal year 2010 and $69,000 in
134.2fiscal year 2011 are reductions from the dairy
134.3and profitability enhancement and dairy
134.4business planning grant programs established
134.5under Laws 1997, chapter 216, section 7,
134.6subdivision 2, and Law 2001, First Special
134.7Session chapter 2, section 9, subdivision 2.
134.8$1,000 in fiscal year 2010 is a reduction from
134.9the appropriation for the administration of
134.10the Feeding Minnesota Task Force.

134.11ARTICLE 18
134.12ECONOMIC DEVELOPMENT UNALLOTMENT RATIFICATION

134.13
Section 1. SUMMARY OF APPROPRIATIONS.
134.14The amounts shown in this section summarize direct appropriations, by fund, made
134.15in this article.
134.16
2010
2011
Total
134.17
General
$
(745,000)
$
(745,000)
$
(1,490,000)
134.18
Total
$
(745,000)
$
(745,000)
$
(1,490,000)

134.19
Sec. 2. APPROPRIATIONS.
134.20The sums shown in the columns marked "APPROPRIATIONS" are added to, or
134.21if shown in parentheses, subtracted from the appropriations in Laws 2009, chapter 78,
134.22article 1, to the agencies and for the purposes specified in this article. The appropriations
134.23are from the general fund, or another named fund, and are available for the fiscal years
134.24indicated for each purpose. The figures "2010" and "2011" used in this article mean
134.25that the addition to or subtraction from the appropriation listed under them is available
134.26for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Supplemental
134.27appropriations and reductions to appropriations for the fiscal year ending June 30, 2010,
134.28are effective the day following final enactment. The appropriation reductions in this
134.29article include, and are not in addition to, appropriation changes and reductions that have
134.30been implemented under the commissioner of management and budget's unallotment
134.31actions that commenced in July 2009.
134.32
APPROPRIATIONS
134.33
Available for the Year
135.1
Ending June 30
135.2
2010
2011

135.3
135.4
Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
135.5
Subdivision 1.Total Appropriation
$
(285,000)
$
(285,000)
135.6The appropriation reductions for each
135.7purpose are shown in the following
135.8subdivisions.
135.9
135.10
Subd. 2.Business and Community
Development
(87,000)
(87,000)
135.11$25,000 in 2010 and $25,000 in 2011 are
135.12from the appropriation for the Office of
135.13Science and Technology.
135.14
Subd. 3.Workforce Development
(115,000)
(115,000)
135.15$15,000 in 2010 and $15,000 in 2011 are
135.16from the appropriation for the Minnesota job
135.17skills partnership program under Minnesota
135.18Statutes, sections 116L.01 to 116L.17.
135.19$11,000 in 2010 and $11,000 in 2011 are from
135.20the appropriation for administrative expenses
135.21to programs that provide employment
135.22support services to persons with mental
135.23illness under Minnesota Statutes, sections
135.24268A.13 and 268A.14.
135.25$89,000 in 2010 and $89,000 in 2011 are
135.26from the appropriation for state services for
135.27the blind activities.
135.28
Subd. 4.State-Funded Administration
(83,000)
(83,000)

135.29
Sec. 4. HOUSING FINANCE AGENCY
$
(256,000)
$
(256,000)
135.30This reduction is from the appropriation to
135.31the Housing Finance Agency for the housing
135.32rehabilitation program under Minnesota
136.1Statutes, section 462A.05, subdivision 14,
136.2for rental housing developments.
136.3On or before June 30, 2010, the Housing
136.4Finance Agency shall transfer $256,000
136.5from the housing rehabilitation program in
136.6the housing development fund to the general
136.7fund.
136.8The base for the housing rehabilitation
136.9program is $4,031,000 in fiscal year 2012
136.10and $4,031,000 in fiscal year 2013.

136.11
136.12
Sec. 5. DEPARTMENT OF LABOR AND
INDUSTRY
$
(20,000)
$
(20,000)
136.13This reduction is from the general
136.14fund appropriation for labor
136.15standards/apprenticeship.

136.16
136.17
Sec. 6. BUREAU OF MEDIATION
SERVICES
$
(16,000)
$
(16,000)
136.18This reduction is from the general fund
136.19appropriation for mediation services.

136.20
136.21
Sec. 7. MINNESOTA HISTORICAL
SOCIETY
136.22
Subdivision 1.Total Appropriation
$
(168,000)
$
(168,000)
136.23The appropriation reductions for each
136.24purpose are shown in the following
136.25subdivisions.
136.26
Subd. 2.Education and Outreach
(96,000)
(96,000)
136.27
Subd. 3.Preservation and Access
(72,000)
(72,000)

136.28ARTICLE 19
136.29TRANSPORTATION UNALLOTMENT RATIFICATION

136.30
Section 1. SUMMARY OF APPROPRIATIONS.
137.1The amounts shown in this section summarize direct appropriations, by fund, made
137.2in this article.
137.3
2010
2011
Total
137.4
General
$
(1,649,000)
$
(1,649,000)
$
(3,298,000)
137.5
Total
$
(1,649,000)
$
(1,649,000)
$
(3,298,000)

137.6
Sec. 2. APPROPRIATIONS.
137.7The sums shown in the columns marked "Appropriations" are added to or, if shown
137.8in parentheses, subtracted from the appropriations in Laws 2009, chapter 36, article 1, to
137.9the agencies and for the purposes specified in this article. The appropriations are from the
137.10general fund, or another named fund, and are available for the fiscal years indicated for
137.11each purpose. The figures "2010" and "2011" used in this article mean that the addition to
137.12or subtraction from the appropriation listed under them are available for the fiscal year
137.13ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
137.14reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day
137.15following final enactment. The appropriation reductions in this article include, and are not
137.16in addition to, appropriation changes and reductions that have been implemented under
137.17the commissioner of management and budget's unallotment actions that commenced
137.18in July 2009.
137.19
APPROPRIATIONS
137.20
Available for the Year
137.21
Ending June 30
137.22
2010
2011

137.23
Sec. 3. TRANSPORTATION
137.24
Subdivision 1.Total Appropriation
$
(24,000)
$
(24,000)
137.25The appropriation reductions for each
137.26purpose are shown in the following
137.27subdivisions.
137.28
Subd. 2.Multimodal Systems
137.29
(a) Transit
(9,000)
(9,000)
137.30This reduction is to the Transit Improvement
137.31Administration appropriation.
137.32
(b) Freight
(9,000)
(9,000)
138.1This reduction is to the rail service plan
138.2appropriation.
138.3
(c) Electronic Communication
(6,000)
(6,000)
138.4This reduction is to the Roosevelt Tower
138.5appropriation.

138.6
Sec. 4. METROPOLITAN COUNCIL
138.7
Subdivision 1.Total Appropriation
$
(1,625,000)
$
(1,625,000)
138.8The appropriation reductions for each
138.9purpose are shown in the following
138.10subdivisions.
138.11
Subd. 2.Bus Transit
(1,506,000)
(1,506,000)
138.12This reduction is to the appropriation for bus
138.13system operations.
138.14
Subd. 3.Rail Operations
(119,000)
(119,000)
138.15This reduction is to the appropriation for rail
138.16systems.

138.17ARTICLE 20
138.18PUBLIC SAFETY UNALLOTMENT RATIFICATION

138.19
Section 1. SUMMARY OF APPROPRIATIONS.
138.20The amounts shown in this section summarize direct appropriations, by fund, made
138.21in this article.
138.22
2010
2011
Total
138.23
General
$
(79,000)
$
(79,000)
$
(158,000)
138.24
Total
$
(79,000)
$
(79,000)
$
(158,000)

138.25
Sec. 2. APPROPRIATIONS.
138.26The sums shown in the columns marked "Appropriations" are added to or, if shown
138.27in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to
138.28the agencies and for the purposes specified in this article. The appropriations are from the
138.29general fund, or another named fund, and are available for the fiscal years indicated for
138.30each purpose. The figures "2010" and "2011" used in this article mean that the addition
138.31to or subtraction from the appropriation listed under them is available for the fiscal year
139.1ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
139.2reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day
139.3following final enactment. The appropriation reductions in this article include, and are not
139.4in addition to, appropriation changes and reductions that have been implemented under
139.5the commissioner of management and budget's unallotment actions that commenced
139.6in July 2009.
139.7
APPROPRIATIONS
139.8
Available for the Year
139.9
Ending June 30
139.10
2010
2011

139.11
Sec. 3. HUMAN RIGHTS
$
(79,000)
$
(79,000)

139.12ARTICLE 21
139.13STATE GOVERNMENT UNALLOTMENT RATIFICATION

139.14
Section 1. SUMMARY OF APPROPRIATIONS.
139.15The amounts shown in this section summarize direct appropriations, by fund, made
139.16in this article.
139.17
2010
2011
Total
139.18
General
$
(1,694,000)
$
(1,820,000)
$
(3,514,000)
139.19
Total
$
(1,694,000)
$
(1,820,000)
$
(3,514,000)

139.20
Sec. 2. APPROPRIATIONS.
139.21The sums shown in the columns marked "Appropriations" are added to or, if shown
139.22in parentheses, subtracted from, the appropriations in Laws 2009, chapter 101, article 1, to
139.23the agencies and for the purposes specified in this article. The appropriations are from the
139.24general fund, or another named fund, and are available for the fiscal years indicated for
139.25each purpose. The figures "2010" and "2011" used in this article mean that the addition
139.26to or subtraction from the appropriation listed under them is available for the fiscal year
139.27ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
139.28reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day
139.29following final enactment. The appropriation reductions in this article include, and are not
139.30in addition to, appropriation changes and reductions that have been implemented under
139.31the commissioner of management and budget's unallotment actions that commenced
139.32in July 2009.
140.1
APPROPRIATIONS
140.2
Available for the Year
140.3
Ending June 30
140.4
2010
2011

140.5
140.6
Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
(81,000)
$
(81,000)
140.7$13,000 of the reduction in each of
140.8fiscal years 2010 and 2011 are from the
140.9appropriation for necessary expenses in the
140.10normal performance of the governor's and
140.11lieutenant governor's duties for which no
140.12other reimbursement is provided.

140.13
140.14
Sec. 4. OFFICE OF ENTERPRISE
TECHNOLOGY
$
(130,000)
$
($130,000)
140.15$96,000 of the reduction in each of
140.16fiscal years 2010 and 2011 are from the
140.17appropriation for information technology
140.18security.

140.19
Sec. 5. ADMINISTRATION
$
(100,000)
$
(200,000)
140.20These reductions are from the Government
140.21and Citizen Services Program.
140.22$162,000 of the balance in the central stores
140.23fund is transferred to the general fund on
140.24or before June 30, 2010. This is a onetime
140.25transfer.

140.26
Sec. 6. MANAGEMENT AND BUDGET
$
(459,000)
$
(459,000)

140.27
Sec. 7. REVENUE
$
(924,000)
$
(950,000)
140.28These reductions are from the tax system
140.29management program.

141.1ARTICLE 22
141.2STATE AIDS, CREDITS, PAYMENTS, AND REFUNDS
141.3UNALLOTMENT RATIFICATION

141.4    Section 1. Minnesota Statutes 2008, section 270A.03, subdivision 7, is amended to
141.5read:
141.6    Subd. 7. Refund. "Refund" means an individual income tax refund or political
141.7contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
141.8chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.
141.9For purposes of this chapter, lottery prizes, as set forth in section 349A.08,
141.10subdivision 8
, and amounts granted to persons by the legislature on the recommendation
141.11of the joint senate-house of representatives Subcommittee on Claims shall be treated
141.12as refunds.
141.13In the case of a joint property tax refund payable to spouses under chapter 290A,
141.14the refund shall be considered as belonging to each spouse in the proportion of the total
141.15refund that equals each spouse's proportion of the total income determined under section
141.16290A.03, subdivision 3 . In the case of a joint income tax refund under chapter 289A, the
141.17refund shall be considered as belonging to each spouse in the proportion of the total
141.18refund that equals each spouse's proportion of the total taxable income determined under
141.19section 290.01, subdivision 29. The commissioner shall remit the entire refund to the
141.20claimant agency, which shall, upon the request of the spouse who does not owe the debt,
141.21determine the amount of the refund belonging to that spouse and refund the amount to
141.22that spouse. For court fines, fees, and surcharges and court-ordered restitution under
141.23section 611A.04, subdivision 2, the notice provided by the commissioner of revenue under
141.24section 270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice
141.25to the spouse who does not owe the debt.
141.26EFFECTIVE DATE.This section is effective for political contribution refund
141.27claims based on contributions that are made after June 30, 2009.

141.28    Sec. 2. Minnesota Statutes 2008, section 273.1384, is amended by adding a subdivision
141.29to read:
141.30    Subd. 6. Credit reduction. In 2011 and thereafter, the annual market value credit
141.31reimbursement amount for each taxing jurisdiction determined under this section is
141.32reduced by the dollar amount of the reduction in market value credit reimbursements for
141.33that taxing jurisdiction in 2010 due to the reductions under section 477A.0133. No taxing
141.34jurisdiction's market value credit reimbursements are reduced to less than zero under
142.1this subdivision. The commissioner of revenue shall pay the annual market value credit
142.2reimbursement amounts, after reduction under this subdivision, to the affected taxing
142.3jurisdictions as provided in this section.
142.4EFFECTIVE DATE.This section is effective the day following final enactment.

142.5    Sec. 3. Minnesota Statutes 2008, section 289A.50, subdivision 1, is amended to read:
142.6    Subdivision 1. General right to refund. (a) Subject to the requirements of this
142.7section and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully
142.8due and who files a written claim for refund will be refunded or credited the overpayment
142.9of the tax determined by the commissioner to be erroneously paid.
142.10(b) The claim must specify the name of the taxpayer, the date when and the period
142.11for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
142.12claims was erroneously paid, the grounds on which a refund is claimed, and other
142.13information relative to the payment and in the form required by the commissioner. An
142.14income tax, estate tax, or corporate franchise tax return, or amended return claiming an
142.15overpayment constitutes a claim for refund.
142.16(c) When, in the course of an examination, and within the time for requesting a
142.17refund, the commissioner determines that there has been an overpayment of tax, the
142.18commissioner shall refund or credit the overpayment to the taxpayer and no demand
142.19is necessary. If the overpayment exceeds $1, the amount of the overpayment must
142.20be refunded to the taxpayer. If the amount of the overpayment is less than $1, the
142.21commissioner is not required to refund. In these situations, the commissioner does not
142.22have to make written findings or serve notice by mail to the taxpayer.
142.23(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
142.24care exceeds the tax against which the credit is allowable, the amount of the excess is
142.25considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
142.26considered an overpayment. The requirements of section 270C.33 do not apply to the
142.27refunding of such an overpayment shown on the original return filed by a taxpayer.
142.28(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
142.29penalties, and interest reported in the return of the entertainment entity or imposed by
142.30section 290.9201, the excess must be refunded to the entertainment entity. If the excess is
142.31less than $1, the commissioner need not refund that amount.
142.32(f) If the surety deposit required for a construction contract exceeds the liability of
142.33the out-of-state contractor, the commissioner shall refund the difference to the contractor.
142.34(g) An action of the commissioner in refunding the amount of the overpayment does
142.35not constitute a determination of the correctness of the return of the taxpayer.
143.1(h) There is appropriated from the general fund to the commissioner of revenue the
143.2amount necessary to pay refunds allowed under this section.
143.3EFFECTIVE DATE.This section is effective for political contribution refund
143.4claims based on contributions that are made after June 30, 2009.

143.5    Sec. 4. Minnesota Statutes 2008, section 290.01, subdivision 6, is amended to read:
143.6    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to
143.7a tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
143.8"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
143.9EFFECTIVE DATE.This section is effective for political contribution refund
143.10claims based on contributions that are made after June 30, 2009.

143.11    Sec. 5. Minnesota Statutes 2008, section 290A.03, subdivision 11, is amended to read:
143.12    Subd. 11. Rent constituting property taxes. "Rent constituting property taxes"
143.13means 19 15 percent of the gross rent actually paid in cash, or its equivalent, or the portion
143.14of rent paid in lieu of property taxes, in any calendar year by a claimant for the right
143.15of occupancy of the claimant's Minnesota homestead in the calendar year, and which
143.16rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
143.17chapter by the claimant.
143.18EFFECTIVE DATE.This section is effective retroactively for property tax refunds
143.19based on rent paid after December 31, 2008.

143.20    Sec. 6. Minnesota Statutes 2008, section 290A.03, subdivision 13, is amended to read:
143.21    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
143.22exclusive of special assessments, penalties, and interest payable on a claimant's homestead
143.23after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
143.24and any other state paid property tax credits in any calendar year, and after any refund
143.25claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
143.26the year that the property tax is payable. In the case of a claimant who makes ground
143.27lease payments, "property taxes payable" includes the amount of the payments directly
143.28attributable to the property taxes assessed against the parcel on which the house is located.
143.29No apportionment or reduction of the "property taxes payable" shall be required for the
143.30use of a portion of the claimant's homestead for a business purpose if the claimant does not
143.31deduct any business depreciation expenses for the use of a portion of the homestead in the
143.32determination of federal adjusted gross income. For homesteads which are manufactured
144.1homes as defined in section 273.125, subdivision 8, and for homesteads which are park
144.2trailers taxed as manufactured homes under section 168.012, subdivision 9, "property
144.3taxes payable" shall also include 19 15 percent of the gross rent paid in the preceding
144.4year for the site on which the homestead is located. When a homestead is owned by
144.5two or more persons as joint tenants or tenants in common, such tenants shall determine
144.6between them which tenant may claim the property taxes payable on the homestead. If
144.7they are unable to agree, the matter shall be referred to the commissioner of revenue
144.8whose decision shall be final. Property taxes are considered payable in the year prescribed
144.9by law for payment of the taxes.
144.10In the case of a claim relating to "property taxes payable," the claimant must have
144.11owned and occupied the homestead on January 2 of the year in which the tax is payable
144.12and (i) the property must have been classified as homestead property pursuant to section
144.13273.124 , on or before December 15 of the assessment year to which the "property taxes
144.14payable" relate; or (ii) the claimant must provide documentation from the local assessor
144.15that application for homestead classification has been made on or before December 15
144.16of the year in which the "property taxes payable" were payable and that the assessor has
144.17approved the application.
144.18EFFECTIVE DATE.This section is effective retroactively for property tax refunds
144.19based upon rent paid after December 31, 2008, and upon property taxes payable in 2010
144.20and thereafter.

144.21    Sec. 7. Minnesota Statutes 2009 Supplement, section 290C.07, is amended to read:
144.22290C.07 CALCULATION OF INCENTIVE PAYMENT.
144.23    An approved claimant under the sustainable forest incentive program is eligible to
144.24receive an annual payment. The payment shall equal the greater of:
144.25    (1) the difference between the property tax that would be paid on the land using the
144.26previous year's statewide average total township tax rate and a class rate of one percent, if
144.27the land were valued at (i) the average statewide managed forest land market value per
144.28acre calculated under section 290C.06, and (ii) the average statewide managed forest land
144.29current use value per acre calculated under section 290C.02, subdivision 5; or
144.30    (2) two-thirds of the property tax amount determined by using the previous year's
144.31statewide average total township tax rate, the estimated market value per acre as calculated
144.32in section 290C.06, and a class rate of one percent, provided that the payment shall be no
144.33less than $7 per acre for each acre enrolled in the sustainable forest incentive program and
145.1the maximum payment per each Social Security number or state or federal business tax
145.2identification number must not exceed $100,000.
145.3EFFECTIVE DATE.This section is effective for payments made after June 30,
145.42010, based on certifications due in 2010 and thereafter.

145.5    Sec. 8. [477A.0133] 2009 AND 2010 AID REDUCTIONS.
145.6    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
145.7have the meanings given them in this subdivision.
145.8(b) The "2009 revenue base" for a statutory or home rule charter city is the sum of
145.9the city's certified property tax levy for taxes payable in 2009, plus the amount of local
145.10government aid under Minnesota Statutes, section 477A.013, subdivision 9, that the city
145.11was certified to receive in 2009, plus the amount of taconite aids under Minnesota Statutes,
145.12sections 298.28 and 298.282, that the city was certified to receive in 2009, including any
145.13amounts required to be placed in a special fund for distribution in a later year.
145.14(c) The "2009 revenue base" for a county is the sum of the county's certified
145.15property tax levy for taxes payable in 2009, plus the amount of county program aid under
145.16Minnesota Statutes, section 477A.0124, that the county was certified to receive in 2009,
145.17plus the amount of taconite aids under Minnesota Statutes, sections 298.28 and 298.282,
145.18that the county was certified to receive in 2009, including any amounts required to be
145.19placed in a special fund for distribution in a later year.
145.20(d) The "2009 revenue base" for a town is the sum of the town's certified property
145.21tax levy for taxes payable in 2009, plus the amount of aid under Minnesota Statutes,
145.22section 477A.013, that the town was certified to receive in 2009, plus the amount of
145.23taconite aids under Minnesota Statutes, section 298.28 and 298.282, that the town was
145.24certified to receive in 2009, including any amounts required to be placed in a special
145.25fund for distribution in a later year.
145.26(e) "Population" means the population of the county, city, or town for 2007 based on
145.27information available to the commissioner of revenue in July 2009.
145.28(f) "Adjusted net tax capacity" means the amount of net tax capacity for the county,
145.29city, or town, computed using equalized market values according to Minnesota Statutes,
145.30section 477A.011, subdivision 20, for aid payable in 2009.
145.31(g) "Adjusted net tax capacity per capita" means the jurisdiction's adjusted net tax
145.32capacity divided by its population.
145.33    Subd. 2. 2009 aid reductions. (a) The commissioner of revenue must compute a
145.342009 aid reduction amount for each county.
146.1The aid reduction amount is zero for a county with a population of less than 5,000,
146.2and is zero for a county containing the Shooting Star Casino property that was removed
146.3from the tax rolls in 2009.
146.4For all other counties, the aid reduction amount is equal to 1.189 percent of the
146.5county's 2009 revenue base.
146.6The reduction amount is limited to the sum of the amount of county program aid
146.7under Minnesota Statutes, section 477A.0124, that the county was certified to receive in
146.82009, plus the amount of market value credit reimbursements under Minnesota Statutes,
146.9section 273.1384, payable to the county in 2009 before the reductions in this section.
146.10The reduction amount is applied first to reduce the amount payable to the county
146.11in 2009 as county program aid under Minnesota Statutes, section 477A.013, and then,
146.12if necessary, to reduce the amount payable to the county in 2009 as market value credit
146.13reimbursements under Minnesota Statutes, section 273.1384.
146.14No county's aid or reimbursements are reduced to less than zero under this section.
146.15(b) The commissioner of revenue must compute a 2009 aid reduction amount for
146.16each city.
146.17The aid reduction amount is zero for any city with a population of less than 1,000
146.18that has an adjusted net tax capacity per capita amount less than the statewide average
146.19adjusted net tax capacity amount per capita for all cities. The aid reduction amount is
146.20also zero for a city located outside the seven-county metropolitan area, with a 2006
146.21population greater than 3,500, a pre-1940 housing percentage greater than 29 percent,
146.22a commercial-industrial percentage less than nine percent, and a population decline
146.23percentage of zero based on the data used to certify the 2009 local government aid
146.24distribution under Minnesota Statutes, section 477A.013.
146.25For all other cities, the aid reduction amount is equal to 3.313 percent of the city's
146.262009 revenue base.
146.27The reduction amount is limited to the sum of the amount of local government aid
146.28under Minnesota Statutes, section 477A.013, subdivision 9, that the city was certified to
146.29receive in 2009, plus the amount of market value credit reimbursements under Minnesota
146.30Statutes, section 273,1384, payable to the city in 2009 before the reductions in this section.
146.31The reduction amount for a city is further limited to $22 per capita.
146.32The reduction amount is applied first to reduce the amount payable to the city in
146.332009 as local government aid under Minnesota Statutes, section 477A.013, and then,
146.34if necessary, to reduce the amount payable to the city in 2009 as market value credit
146.35reimbursements under Minnesota Statutes, section 273.1384.
146.36No city's aid or reimbursements are reduced to less than zero under this section.
147.1(c) The commissioner of revenue must compute a 2009 aid reduction amount for
147.2each town.
147.3The aid reduction amount is zero for any town with a population of less than 1,000
147.4that has an adjusted net tax capacity per capita amount less than the statewide average
147.5adjusted net tax capacity amount per capita for all towns.
147.6For all other towns, the aid reduction amount is equal to 1.735 percent of the town's
147.72009 revenue base.
147.8The reduction amount is limited to $5 per capita.
147.9The reduction amount is applied to reduce the amount payable to the town in 2009
147.10as market value credit reimbursements under Minnesota Statutes, section 273.1384.
147.11No town's reimbursements are reduced to less than zero under this section.
147.12    Subd. 3. 2010 aid reductions. (a) The commissioner of revenue must compute a
147.132010 aid reduction amount for each county.
147.14The aid reduction amount is zero for a county with a population of less than 5,000,
147.15and is zero for a county containing the Shooting Star Casino property that was removed
147.16from the tax rolls in 2009.
147.17For all other counties, the aid reduction amount is equal to 2.414 percent of the
147.18county's 2009 revenue base.
147.19The reduction amount is limited to the sum of the amount of county program aid
147.20under Minnesota Statutes, section 477A.0124, that the county was certified to receive in
147.212009, plus the amount of market value credit reimbursements under Minnesota Statutes,
147.22section 273.1384, payable to the county in 2009 before the reductions in this section.
147.23The reduction amount is applied first to reduce the amount payable to the county
147.24in 2010 as county program aid under Minnesota Statutes, section 477A.013, and then,
147.25if necessary, to reduce the amount payable to the county in 2010 as market value credit
147.26reimbursements under Minnesota Statutes, section 273.1384.
147.27No county's aid or reimbursements are reduced to less than zero under this section.
147.28(b) The commissioner of revenue must compute a 2010 aid reduction amount for
147.29each city.
147.30The aid reduction amount is zero for any city with a population of less than 1,000
147.31that has an adjusted net tax capacity per capita amount less than the statewide average
147.32adjusted net tax capacity amount per capita for all cities.
147.33For all other cities, the aid reduction amount is equal to 7.644 percent of the city's
147.342009 revenue base.
147.35The reduction amount is limited to the sum of the amount of local government aid
147.36under Minnesota Statutes, section 477A.013, subdivision 9, that the city was certified to
148.1receive in 2010, plus the amount of market value credit reimbursements under Minnesota
148.2Statutes, section 273.1384, payable to the city in 2010 before the reductions in this section.
148.3The reduction amount for a city is further limited to $55 per capita.
148.4The reduction amount is applied first to reduce the amount payable to the city in
148.52010 as local government aid under Minnesota Statutes, section 477A.013, and then,
148.6if necessary, to reduce the amount payable to the city in 2010 as market value credit
148.7reimbursements under Minnesota Statutes, section 273.1384.
148.8No city's aid or reimbursements are reduced to less than zero under this section.
148.9(c) The commissioner of revenue must compute a 2010 aid reduction amount for
148.10each town.
148.11The aid reduction amount is zero for any town with a population of less than 1,000
148.12that has an adjusted net tax capacity per capita amount less than the statewide average
148.13adjusted net tax capacity amount per capita for all towns.
148.14For all other towns, the aid reduction amount is equal to 3.661 percent of the town's
148.152009 revenue base.
148.16The reduction amount is limited to $10 per capita.
148.17The reduction amount is applied to reduce the amount payable to the town in 2010
148.18as market value credit reimbursements under Minnesota Statutes, section 273.1384.
148.19No town's reimbursements are reduced to less than zero under this section.
148.20EFFECTIVE DATE.This section is effective the day following final enactment.

148.21    Sec. 9. Minnesota Statutes 2008, section 477A.03, subdivision 2a, is amended to read:
148.22    Subd. 2a. Cities. For aids payable in 2009 2011 and thereafter, the total aid
148.23paid under section 477A.013, subdivision 9, is $526,148,487, subject to adjustment in
148.24subdivision 5 $455,754,327.
148.25EFFECTIVE DATE.This section is effective for aids payable in 2011 and
148.26thereafter.

148.27    Sec. 10. Minnesota Statutes 2008, section 477A.03, subdivision 2b, is amended to read:
148.28    Subd. 2b. Counties. (a) For aids payable in 2009 2011 and thereafter, the total aid
148.29payable under section 477A.0124, subdivision 3, is $111,500,000 $85,544,131 minus
148.30one-half of the total aid amount determined under section 477A.0124, subdivision 5,
148.31paragraph (b), subject to adjustment in subdivision 5. Each calendar year, $500,000 shall
148.32be retained by the commissioner of revenue to make reimbursements to the commissioner
148.33of management and budget for payments made under section 611.27. For calendar
149.1year 2004, the amount shall be in addition to the payments authorized under section
149.2477A.0124, subdivision 1 . For calendar year 2005 and subsequent years, the amount shall
149.3be deducted from the appropriation under this paragraph. The reimbursements shall be to
149.4defray the additional costs associated with court-ordered counsel under section 611.27.
149.5Any retained amounts not used for reimbursement in a year shall be included in the next
149.6distribution of county need aid that is certified to the county auditors for the purpose of
149.7property tax reduction for the next taxes payable year.
149.8    (b) For aids payable in 2009 2011 and thereafter, the total aid under section
149.9477A.0124, subdivision 4 , is $116,132,923 $89,392,742 minus one-half of the total aid
149.10amount determined under section 477A.0124, subdivision 5, paragraph (b), subject to
149.11adjustment in subdivision 5. The commissioner of management and budget shall bill the
149.12commissioner of revenue for the cost of preparation of local impact notes as required by
149.13section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner
149.14of education shall bill the commissioner of revenue for the cost of preparation of local
149.15impact notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal
149.16year 2004 and thereafter. The commissioner of revenue shall deduct the amounts billed
149.17under this paragraph from the appropriation under this paragraph. The amounts deducted
149.18are appropriated to the commissioner of management and budget and the commissioner of
149.19education for the preparation of local impact notes.
149.20EFFECTIVE DATE.This section is effective for aids payable in 2011 and
149.21thereafter.

149.22    Sec. 11. Laws 2009, chapter 88, article 12, section 21, is amended to read:
149.23    Sec. 21. SPECIAL ACCOUNT; TIMING DIFFERENCES.
149.24Notwithstanding the provisions of Minnesota Statutes, section 290.62, the
149.25commissioner of revenue shall deposit the additional income tax and corporate franchise
149.26tax revenues collected as a result of the combination of: (1) the additions under Minnesota
149.27Statutes, section 290.01, subdivision 19a, clauses (7) and (8), and subdivision 19c, clauses
149.28(15) and (16); and (2) adopting the provisions of American Recovery and Reinvestment
149.29Act of 2009, in a special timing account in the general fund, but not to exceed $10,149,000
149.30$6,279,000. On July 11, 2011, the commissioner of revenue shall transfer the money in
149.31the account to the general fund to offset the reduction in revenues resulting from the
149.32subtractions under Minnesota Statutes, section 290.01, subdivision 19b, clauses (9) and
149.33(14), and subdivision 19d, clauses (18) and (19).

149.34    Sec. 12. REPEALER.
150.1(a) Minnesota Statutes 2008, sections 10A.322, subdivision 4; and 13.4967,
150.2subdivision 2, are repealed.
150.3(b) Minnesota Statutes 2008, section 290.06, subdivision 23, is repealed.
150.4(c) Minnesota Statutes 2008, section 477A.03, subdivision 5, is repealed.
150.5EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
150.6Paragraph (b) is effective retroactively for refund claims based on contributions made after
150.7June 30, 2009. Paragraph (c) is effective for aids payable in 2011 and thereafter.