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HF 797

2nd Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:37pm

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

Current Version - 2nd Committee Engrossment

1.1A bill for an act
1.2relating to work force development; appropriating money for higher education;
1.3establishing the Minnesota GI Bill program; amending certain Minnesota
1.4Office of Higher Education provisions, establishing new grant and loan
1.5repayment programs; amending higher education programs; amending certain
1.6grant programs; amending certain higher education provisions; eliminating
1.7obsolete references, making technical changes; authorizing control of certain
1.8decreasing students' share of attendance; establishing a college readiness
1.9assessment; increasing revenue bond limits; authorizing control of certain
1.10deposits; authorizing lease agreements; authorizing interest rate swap; providing
1.11for the Textbook Disclosure, Pricing and Access Act; amending certain private
1.12postsecondary institution provisions; appropriating money for jobs and economic
1.13development; amending certain Department of Employment and Economic
1.14Development and the Department of Labor and Industry programs and creating
1.15new programs and grants; establishing the Packinghouse Workers Bill of Rights;
1.16providing for civil actions; providing civil penalties; establishing criminal
1.17penalties; requiring reports; authorizing the increase of certain fees; requiring
1.18assignment of certain inspectors to certain locations; regulating licenses and
1.19wages; requiring certain curriculum for hair braiding at accredited schools;
1.20amending certain licensing provisions; appropriating money for Iron Range
1.21Resources and Rehabilitation Board fund; making certain policy changes
1.22related to Iron Range Resources and Rehabilitation Board; establishing certain
1.23boards; amending certain board provisions;amending Minnesota Statutes 2006,
1.24sections 13.322, subdivision 3; 16B.70, by adding a subdivision; 41D.01,
1.25subdivision 1; 116J.401, by adding a subdivision; 116J.551, subdivision 1;
1.26116J.554, subdivision 2; 116J.555, subdivision 1; 116J.575, subdivisions 1, 1a;
1.27116J.966, subdivision 1; 116L.01, by adding a subdivision; 116L.04, subdivision
1.281a; 116L.17, subdivision 1; 116L.20, subdivision 1; 116M.18, subdivision
1.296a; 120B.023, subdivision 2; 120B.024; 135A.031, subdivision 7; 135A.053,
1.30subdivision 2; 135A.14, subdivision 1; 135A.51, subdivision 2; 135A.52,
1.31subdivisions 1, 2; 136A.01, subdivision 2; 136A.031, subdivision 5; 136A.0411;
1.32136A.08, subdivision 7; 136A.101, subdivision 4; 136A.121, subdivision 5;
1.33136A.125, subdivision 2; 136A.15, subdivisions 1, 6; 136A.233, subdivision 3;
1.34136A.29, subdivision 9; 136A.61; 136A.62, subdivision 3; 136A.63; 136A.64;
1.35136A.65; 136A.653; 136A.657; 136A.66; 136A.67; 136A.68; 136A.69;
1.36136A.71; 136A.861, subdivisions 1, 2, 3, 6; 136F.02, subdivision 1; 136F.42,
1.37subdivision 1; 136F.71, subdivision 2, by adding a subdivision; 136G.11,
1.38subdivision 5; 141.21, subdivisions 1a, 5; 141.25, subdivisions 1, 5, 7, 9, 10, 12;
1.39141.255, subdivision 2; 141.265, subdivision 2; 141.271, subdivisions 10, 12;
2.1141.28, subdivision 1; 141.32; 141.35; 177.27, subdivisions 1, 4, 5, 8, 9, 10, by
2.2adding a subdivision; 177.28, subdivision 1; 177.30; 177.43, subdivisions 3, 4,
2.36, by adding a subdivision; 178.01; 178.02; 178.03, subdivision 3; 178.041,
2.4subdivision 1; 181.78, by adding a subdivision; 181.932, subdivision 1; 181.935;
2.5182.65, subdivision 2; 268.085, subdivision 3; 268.196, by adding a subdivision;
2.6268A.01, subdivision 13, by adding a subdivision; 268A.085, subdivision 1;
2.7268A.15, by adding a subdivision; 298.22, subdivision 2; 298.227; 325E.37,
2.8subdivision 6; 326.01, subdivision 6g; 326.241, subdivisions 1, 2; 326.242,
2.9subdivisions 5, 11, by adding a subdivision; 326.37, subdivision 1; 326.38;
2.10326.40, subdivision 1; 326.401, subdivision 2; 326.405; 326.42, subdivision 1;
2.11326.46; 326.461, by adding a subdivision; 326.47, subdivisions 2, 6; 326.48,
2.12subdivisions 1, 2, by adding a subdivision; 326.50; 326.51; 326.52; 341.28,
2.13subdivision 2, by adding a subdivision; 341.32, subdivision 2; 341.321; 462.39,
2.14by adding a subdivision; proposing coding for new law in Minnesota Statutes,
2.15chapters 116J; 116O; 135A; 136A; 136F; 141; 154; 177; 179; 181; 181A; 182;
2.16197; 270; 326; repealing Minnesota Statutes 2006, sections 16C.18, subdivision
2.172; 135A.031, subdivisions 1, 2, 3, 4, 5, 6; 135A.032; 135A.033; 136A.07;
2.18136A.08, subdivision 8; 137.0245; 137.0246; 326.01, subdivision 4; 326.242,
2.19subdivision 4; 326.45.
2.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.21ARTICLE 1
2.22HIGHER EDUCATION APPROPRIATIONS

2.23
Section 1. SUMMARY OF APPROPRIATIONS.
2.24    The amounts shown in this section summarize direct appropriations, by fund, made
2.25in this article.
2.26
2008
2009
Total
2.27
General
$
1,561,498,000
$
1,644,178,000
$
3,205,676,000
2.28
Health Care Access
2,157,000
2,157,000
4,314,000
2.29
Total
$
1,563,655,000
$
1,646,335,000
$
3,209,990,000

2.30
Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.31    The sums shown in the columns marked "Appropriations" are appropriated to the
2.32agencies and for the purposes specified in this article. The appropriations are from the
2.33general fund, or another named fund, and are available for the fiscal years indicated
2.34for each purpose. The figures "2008" and "2009" used in this article mean that the
2.35appropriations listed under them are available for the fiscal year ending June 30, 2008, or
2.36June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
2.37year 2009. "The biennium" is fiscal years 2008 and 2009.
2.38
APPROPRIATIONS
2.39
Available for the Year
2.40
Ending June 30
2.41
2008
2009

3.1
3.2
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
3.3
Subdivision 1.Total Appropriation
$
197,983,000
$
198,654,000
3.4The amounts that may be spent for each
3.5purpose are specified in the following
3.6subdivisions.
3.7
Subd. 2.Minnesota GI Bill
10,000,000
10,000,000
3.8For grants to eligible veterans or the eligible
3.9spouses and children of veterans as provided
3.10under Minnesota Statutes, section 197.791.
3.11Of this appropriation, $152,000 the first
3.12year and $104,000 the second year are for
3.13the administrative costs of operating this
3.14program. For the 2010-2011 biennium,
3.15the base for this program's administrative
3.16costs must be included within the agency
3.17administration program activity.
3.18
Subd. 3.State Grants
150,154,000
151,124,000
3.19If the appropriation in this subdivision for
3.20either year is insufficient, the appropriation
3.21for the other year is available for it.
3.22For the biennium, the tuition maximum for
3.23students in four-year programs is $9,957 in
3.24each year for students in four-year programs,
3.25and for students in two-year programs, is
3.26$4,717 in the first year and $4,859 in the
3.27second year.
3.28This appropriation sets the living and
3.29miscellaneous expense allowance at $6,241
3.30each year.
3.31
Subd. 4.Safety Officers Survivors
100,000
100,000
3.32This appropriation is to provide educational
3.33benefits under Minnesota Statutes, section
4.1299A.45, to dependent children under age 23
4.2and to the spouses of public safety officers
4.3killed in the line of duty.
4.4If the appropriation in this subdivision for
4.5either year is insufficient, the appropriation
4.6for the other year is available for it.
4.7
Subd. 5.Interstate Tuition Reciprocity
2,000,000
2,000,000
4.8If the appropriation in this subdivision for
4.9either year is insufficient, the appropriation
4.10for the other year is available to meet
4.11reciprocity contract obligations.
4.12
Subd. 6.State Work Study
12,444,000
12,444,000
4.13
Subd. 7.Child Care Grants
4,934,000
4,934,000
4.14
Subd. 8.Minitex
5,881,000
5,881,000
4.15
Subd. 9.MnLINK Gateway
400,000
400,000
4.16
Subd. 10.Learning Network of Minnesota
4,800,000
4,800,000
4.17
Subd. 11.Minnesota College Savings Plan
1,020,000
1,020,000
4.18
Subd. 12.Midwest Higher Education Compact
90,000
90,000
4.19
Subd. 13.Other Small Programs
2,010,000
1,670,000
4.20This appropriation includes funding for
4.21postsecondary service learning, student and
4.22parent information, get ready, outreach, and
4.23intervention for college attendance programs.
4.24$265,000 each year is for grants to increase
4.25campus-community collaboration and service
4.26learning statewide, including operations of
4.27the Minnesota campus compact, grants to
4.28member institutions and grants for member
4.29institution initiatives. For every $1 in state
4.30funding, grant recipients must contribute $2
4.31in campus or community-based support.
5.1$100,000 each year is for a grant to the
5.2Loan Repayment Assistance Program
5.3of Minnesota, Inc. for loan repayment
5.4assistance awards.
5.5$500,000 each year is for the teacher
5.6education and compensation helps (TEACH)
5.7and the Minnesota early childhood teacher
5.8retention programs in Minnesota Statutes,
5.9section 136A.126. This is a onetime
5.10appropriation.
5.11$250,000 in the first year is for a grant to
5.12Augsburg College for the purpose of its
5.13Step UP program to provide educational
5.14opportunities to chemically dependent
5.15students and to work with other public
5.16and private colleges in Minnesota to help
5.17replicate this program. This is a onetime
5.18appropriation.
5.19$50,000 in the first year is for the speech
5.20pathologist loan forgiveness program for
5.21deposit in the account under Minnesota
5.22Statutes, section 136A.1704.
5.23$40,000 in the first year is for a grant to
5.24the Washington Center for Internships and
5.25Academic Seminars for a pilot program
5.26for scholarships for students enrolling in a
5.27Minnesota four-year college or university
5.28beginning in the fall semester of 2007. The
5.29grant is available only with a dollar-for-dollar
5.30match from nonstate sources.
5.31
5.32
5.33
Subd. 14.Access to College and Helping
Individuals Everywhere Value Education and
Rural Pilot Programs
1,000,000
1,000,000
5.34For Access to College and Helping
5.35Individuals Everywhere Value Education
6.1pilot projects that provide distance-learning
6.2opportunities through the Minnesota State
6.3Colleges and Universities for high school
6.4students living in remote and underserved
6.5areas where the school district lacks
6.6the resources to provide academically
6.7challenging educational opportunities,
6.8including Advanced Placement and
6.9International Baccalaureate programs.
6.10Students who successfully complete a course
6.11must receive college credit at no cost to the
6.12student or the participating school district.
6.13The office must report to the committees of
6.14the legislature with responsibility for higher
6.15education finance by January 15, 2009, on the
6.16program outcomes with recommendations on
6.17continuing and expanding the program.
6.18
6.19
Subd. 15.United Family Medicine Residency
Program
360,000
360,000
6.20For a grant to the united family medicine
6.21residency program. This appropriation
6.22must be used to support up to 18 resident
6.23physicians each year in family practice at
6.24united family medicine residency programs
6.25and must prepare doctors to practice family
6.26care medicine in underserved rural and
6.27urban areas of the state. The legislature
6.28intends this program to improve health
6.29care in underserved communities, provide
6.30affordable access to appropriate medical
6.31care, and manage the treatment of patients in
6.32a more cost-effective manner.
6.33
Subd. 16.Agency Administration
2,690,000
2,731,000
6.34Of this appropriation, $39,000 the first
6.35year and $80,000 the second year are for
7.1compensation-related costs associated with
7.2the delivery of the office's services and
7.3programs.
7.4
Subd. 17.Balances Forward
7.5A balance in the first year under this section
7.6does not cancel, but is available for the
7.7second year.
7.8
Subd. 18.Transfers
7.9The Minnesota Office of Higher Education
7.10may transfer unencumbered balances from
7.11the appropriations in subdivisions 2 to 15 to
7.12the state grant appropriation, the safety officer
7.13survivors appropriation, the interstate tuition
7.14reciprocity appropriation, the Minnesota
7.15college savings plan appropriation, the child
7.16care appropriation, and the state work study
7.17appropriation.
7.18
Subd. 19.Reporting
7.19(a) By November 1 and February 15, the
7.20Minnesota Office of Higher Education
7.21must provide updated state grant spending
7.22projections, taking into account the most
7.23current and projected enrollment and tuition
7.24and fee information, economic conditions,
7.25and other relevant factors. Before submitting
7.26state grant spending projections, the office
7.27must meet and consult with representatives of
7.28public and private postsecondary education,
7.29the Department of Finance, the governor's
7.30office, legislative staff, and financial aid
7.31administrators.
7.32(b) The Minnesota Office of Higher
7.33Education shall report to the higher education
7.34divisions of the house and senate finance
8.1committees on participation in postsecondary
8.2education by income, and persistence and
8.3graduation rates of state grant recipients
8.4compared to students who did not receive
8.5state grants. The office is authorized to match
8.6individual student data from the student
8.7record enrollment database with individual
8.8student data from the state grant database on
8.9data elements necessary to perform the study.

8.10
8.11
8.12
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
8.13
Subdivision 1.Total Appropriation
$
668,388,000
$
704,288,000
8.14The amounts that may be spent for each
8.15purpose are specified in the following
8.16subdivisions.
8.17
8.18
Subd. 2.Central Office and Shared Services
Unit
$
40,170,550
$
40,170,550
8.19For the office of the chancellor and the shared
8.20services division.
8.21
Subd. 3.Operations and Maintenance
$
628,217,450
$
664,118,000
8.22(a) This appropriation includes funding
8.23for the board's initiatives on recruiting and
8.24retaining underrepresented students, strategic
8.25educational advancements, STEM initiatives,
8.26and infrastructure and technology, and for
8.27the costs of inflation. This appropriation
8.28also includes funding to reduce the tuition
8.29rate increase to two percent from the
8.30board-approved plan of a four percent annual
8.31increase.
8.32(b) Appropriations for technology and
8.33infrastructure under this subdivision must
8.34not be used to increase permanent positions
9.1in the office of the chancellor or the shared
9.2services office. Any new positions funded
9.3from the technology and infrastructure
9.4appropriation must be at a campus.
9.5(c) $400,000 each year is for
9.6community-based energy development
9.7pilot projects at Mesabi Range Technical
9.8and Community College, the Minnesota
9.9West Community and Technical College,
9.10and Riverland Community College. Each
9.11campus must establish partnerships for
9.12community-based energy development pilot
9.13projects that involve students and faculty. An
9.14allocation for the pilot project is available
9.15to the participating institutions and the
9.16partnerships for the biennium ending June
9.1730, 2009.
9.18(d) $750,000 in the first year is for a modular
9.19clean-room research and training facility
9.20at St. Paul College. This is a onetime
9.21appropriation and is available until expended.
9.22(e) $300,000 the first year is for a grant to
9.23the Range Association of Municipalities
9.24and Schools for a study of student demand
9.25and employer needs for higher education in
9.26the Mesabi Range region of northeastern
9.27Minnesota including the cities of Grand
9.28Rapids through Eveleth to Ely. The
9.29association must coordinate and contract for
9.30a study in cooperation with the Board of
9.31Regents of the University of Minnesota and
9.32the Board of Trustees of the Minnesota State
9.33Colleges and Universities. The governing
9.34boards must advise on which of the identified
9.35needs can be met by University of Minnesota
10.1courses and which can be met by the
10.2Minnesota State Colleges and Universities,
10.3and which degree programs may be offered
10.4jointly. The final report must be submitted to
10.5the committees of the legislature responsible
10.6for higher education finance by January 15,
10.72008, with recommendations and plans for
10.8the region.
10.9(f) $120,000 in each year is for the Cook
10.10County Higher Education Board to provide
10.11educational programs and academic support
10.12services. The base appropriation for this
10.13program is $120,000 in each year of the
10.14biennium ending June 30, 2011.
10.15(g) $2,000,000 the first year and $1,000,000
10.16the second year are for a pilot project with
10.17the Northeast Minnesota Higher Education
10.18District and high schools in its area. Up to
10.19$1,200,000 of the first year appropriation
10.20must be used to purchase equipment that is
10.21necessary to reestablish a technical education
10.22curriculum in the area high schools to
10.23provide the students with the technical
10.24skills necessary for the workforce. Students
10.25from area high schools may also access
10.26the facilities and faculty of the Northeast
10.27Minnesota Higher Education District
10.28for state-of-the-art technical education
10.29opportunities, including MnSCU's 2+2
10.30Pathways initiative. $1,000,000 is added to
10.31the base for this project.
10.32(h) $50,000 in the first year is for St. Paul
10.33College to collaborate with the United Auto
10.34Workers Local 879 to purchase a Ford
10.35Ranger pickup truck to retrofit to run on a
11.1battery-powered motor. This vehicle must
11.2be retrofitted to serve as a prototype that
11.3could be mass-produced at the St. Paul Ford
11.4assembly plant.
11.5(i) $100,000 each year is for a grant to a
11.6Minnesota public postsecondary institution
11.7with a total student enrollment under 7,000
11.8students, that has an existing women's
11.9hockey team competing in Division I in the
11.10Western Collegiate Hockey Association.
11.11The institution may use the grant for
11.12equipment, facility improvements, travel and
11.13compensation for coaches, trainers, and other
11.14necessary personnel.
11.15(j) $450,000 each year is to establish a center
11.16for workforce and economic development
11.17at the Mesabi Range Community and
11.18Technical College and to enhance eFolio
11.19Minnesota. The board, in cooperation with
11.20the Iron Range Resources and Rehabilitation
11.21Board (IRRRB) and the Department of
11.22Employment and Economic Development,
11.23must establish the center to provide on-site
11.24and Internet-based support and technical
11.25assistance to users of the state's eFolio
11.26Minnesota system to promote workforce and
11.27economic development. The center must
11.28assist local economic development agencies
11.29and officials to enable them to access
11.30workforce information generated through the
11.31eFolio Minnesota system. The board must
11.32enhance the eFolio Minnesota system as
11.33necessary to serve these purposes. The center
11.34must report annually to the IRRRB and the
11.35Department of Employment and Economic
12.1Development on the outcomes of the center's
12.2activities.
12.3(k) $1,000,000 the first year is to identify
12.4and improve on practices for selecting and
12.5purchasing textbooks and course materials
12.6that are used by students. The board, in
12.7collaboration with the Minnesota State
12.8University Student Association (MSUSA)
12.9and the Minnesota State College Student
12.10Association (MSCSA) must develop
12.11and implement pilot projects with this
12.12appropriation to address the financial burden
12.13that textbook prices and requirements place
12.14on students. These projects may include
12.15textbook rental programs, cooperative
12.16purchasing efforts, training, and education
12.17and awareness programs for students and
12.18faculty on cost considerations and textbook
12.19options. The student associations must
12.20be fully involved in the development and
12.21implementation of any project using this
12.22appropriation. Each student association
12.23must vote to approve a project before it is
12.24implemented. MSUSA and MSCSA must
12.25report to the committees of the legislature
12.26responsible for higher education finance by
12.27February 15, 2009, on the success of the pilot
12.28projects. This money is available until June
12.2930, 2009.
12.30
Subd. 4.Board Policies
12.31(a) The board must adopt a policy that allows
12.32students to add the cost of textbooks and
12.33required course materials purchased at a
12.34campus bookstore, owned by or operated
12.35under a contract with the campus, to the
13.1existing waivers or payment plans for tuition
13.2and fees.
13.3(b) The board must adopt a policy setting
13.4the maximum number of semester credits
13.5required for a baccalaureate degree at 120
13.6semester credits or the equivalent and the
13.7number of semester credits required for an
13.8associate degree at 60 semester credits or the
13.9equivalent.

13.10
13.11
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
13.12
Subdivision 1.Total Appropriation
$
696,082,000
$
742,143,000
13.13The amounts that may be spent for each
13.14purpose are specified in the following
13.15subdivisions.
13.16
Subd. 2.Operations and Maintenance
611,112,000
667,550,000
13.17(a) This appropriation includes amounts for
13.18the board:
13.19(1) to make investments in the university's
13.20technology and related infrastructure;
13.21(2) to award faculty and staff compensation
13.22increases differentially;
13.23(3) for the board's health workforce and
13.24clinical sciences initiative;
13.25(4) initiatives in science and engineering;
13.26(5) initiatives relating to the environment,
13.27agriculture, and renewable energy; and
13.28(6) for advancing education, including an
13.29Ojibwe Indian language program on the
13.30Duluth campus.
13.31(b) $2,250,000 each year is to establish
13.32banded tuition at the Morris, Crookston, and
14.1Duluth campuses to reduce tuition costs for
14.2students.
14.3(c) $7,000,000 for the biennium is for
14.4scholarships to mitigate the effects of rising
14.5tuition on Minnesota students and families.
14.6This appropriation must be matched with
14.7$2 of nonstate money for each $1 of state
14.8money.
14.9(d) $12,404,000 in the second year is to
14.10reduce the proposed tuition rate increase.
14.11Any of this amount that is not used by the
14.12board to reduce tuition cancels to the general
14.13fund.
14.14(e) $300,000 the first year is for the Center
14.15for Transportation Studies to complete a
14.16study to assess public policy options for
14.17reducing the volume of greenhouse gases
14.18emitted from the transportation sector in
14.19Minnesota. The Center for Transportation
14.20Studies must report its preliminary findings
14.21to the legislature by February 1, 2008, and
14.22must issue its full report by June 1, 2008.
14.23This is a onetime appropriation.
14.24(f) $250,000 each year is to establish an India
14.25Center to improve and promote relations with
14.26India and Southeast Asia. The center must
14.27partner with public and private organizations
14.28in Minnesota to:
14.29(1) foster an understanding of the history,
14.30culture, and values of India;
14.31(2) serve as a resource and catalyst to
14.32promote economic, governmental, and
14.33academic pursuits involving India; and
15.1(3) facilitate educational and business
15.2exchanges and partnerships, collaborative
15.3research, and teaching and training activities
15.4for Minnesota students and teachers.
15.5The Board of Regents may establish an
15.6advisory council to facilitate the mission
15.7and objectives of the India Center and must
15.8report on the progress of the India Center by
15.9February 15, 2008, to the governor and chairs
15.10of the legislative committees responsible for
15.11higher education finance. This is a onetime
15.12appropriation.
15.13(g) $750,000 in the first year is to assist in
15.14the formation of the neighborhood alliance
15.15and for projects identified in section 8. The
15.16alliance, the Board of Regents, and the city of
15.17Minneapolis may cooperate on the projects
15.18and may use a public services of other entities
15.19to complete all or a portion of a project.
15.20(h) $300,000 the first year is to establish a
15.21Dakota language teacher training immersion
15.22program on the Twin Cities campus to
15.23prepare teachers to teach in Dakota language
15.24immersion programs. This is a onetime
15.25appropriation.
15.26(i) $400,000 each year is for the Minnesota
15.27Institute for Sustainable Agriculture to
15.28provide funds for on-station and on-farm
15.29field scale research and outreach to develop
15.30and test the agronomic and economic
15.31requirements of diverse strands of prairie
15.32plants and other perennials for bioenergy
15.33systems including but not limited to
15.34multiple species selection and establishment,
15.35ecological management between planting
16.1and harvest, harvest technologies, financial
16.2and agronomic risk management, farmer
16.3goal setting and adoption of technologies,
16.4integration of wildlife habitat into
16.5management approaches, evaluation of
16.6carbon and other benefits, and robust polices
16.7needed to induce farmer conversion on
16.8marginal lands.
16.9
Subd. 3.Health Care Access Fund
2,157,000
2,157,000
16.10This appropriation is from the health care
16.11access fund and is for primary care education
16.12initiatives.
16.13
Subd. 4.Special Appropriation
65,813,000
65,436,000
16.14
(a) Agriculture and Extension Service
52,625,000
52,275,000
16.15(1) For the Agricultural Experiment
16.16Station, Minnesota Extension Service. This
16.17appropriation includes funding to promote
16.18alternative livestock research and outreach
16.19at the Minnesota Institute for Sustainable
16.20Agriculture, and to promote sustainable and
16.21organic agricultural research and education.
16.22(2) This appropriation includes funding
16.23for research efforts that demonstrate a
16.24renewed emphasis on the needs of the state's
16.25production agriculture community and a
16.26continued focus on renewable energy derived
16.27from Minnesota biomass resources including
16.28agronomic crops, plant and animal wastes,
16.29and native plants or trees, with priority for
16.30extending the Minnesota vegetable growing
16.31season; fertilizer and soil fertility research
16.32and development; treating and curing human
16.33diseases utilizing plant and livestock cells;
16.34using biofuel production coproducts as
17.1feed for livestock; and a rapid agricultural
17.2response fund for current or emerging
17.3animal, plant, and insect problems affecting
17.4production or food safety. In addition, the
17.5appropriation may be used to secure a facility
17.6and retain current faculty levels for poultry
17.7research currently conducted at UMore Park.
17.8(3) In the area of renewable energy, priority
17.9should be given to projects pertaining to:
17.10biofuel and other energy production from
17.11small grains; alternative bioenergy crops and
17.12cropping systems; and growing, harvesting,
17.13and transporting biomass plant material.
17.14(4) This appropriation includes funding for
17.15the college of food, agricultural, and natural
17.16resources sciences to establish and maintain
17.17a statewide organic research and education
17.18initiative to provide leadership for organic
17.19agronomic, horticultural, livestock, and food
17.20systems research, education, and outreach
17.21and for the purchase of state-of-the-art
17.22laboratory, planting, tilling, harvesting, and
17.23processing equipment necessary for this
17.24project.
17.25(5) By February 1, 2009, the Board
17.26of Regents must report to the legislative
17.27committees with responsibility for agriculture
17.28and higher education finance on the research
17.29and initiatives under this paragraph.
17.30(6) The base appropriation is $51,775,000
17.31each year of the biennium ending June 30,
17.322011.
17.33
(b) Health Sciences
5,275,000
5,275,000
17.34$346,000 each year is to support up to 12
17.35resident physicians each year in the St.
18.1Cloud Hospital family practice residency
18.2program. The program must prepare doctors
18.3to practice primary care medicine in the rural
18.4areas of the state. The legislature intends
18.5this program to improve health care in rural
18.6communities, provide affordable access to
18.7appropriate medical care, and manage the
18.8treatment of patients in a more cost-effective
18.9manner.
18.10The remainder of this appropriation is for
18.11the rural physicians associates program, the
18.12Veterinary Diagnostic Laboratory, health
18.13sciences research, dental care, and the
18.14Biomedical Engineering Center.
18.15
(c) Institute of Technology
1,387,000
1,387,000
18.16For the Geological Survey and the talented
18.17youth mathematics program.
18.18
(d) System Specials
6,526,000
6,526,000
18.19For general research, student loans matching
18.20money, industrial relations education,
18.21Natural Resources Research Institute, Center
18.22for Urban and Regional Affairs, and the Bell
18.23Museum of Natural History. $100,000 is
18.24added to the base appropriation for industrial
18.25relations education.
18.26
18.27
Subd. 5.University of Minnesota and Mayo
Foundation Partnership
17,000,000
7,000,000
18.28For the direct and indirect expenses of the
18.29collaborative research partnership between
18.30the University of Minnesota and the Mayo
18.31Foundation for research in biotechnology
18.32and medical genomics. $7,000,000 is added
18.33to the base. This appropriation is available
18.34until expended. An annual report on the
18.35expenditure of these funds must be submitted
19.1to the governor and the chairs of the senate
19.2and house committees responsible for higher
19.3education and economic development by
19.4June 30 of each fiscal year.
19.5
Subd. 6.Academic Health Center
19.6The appropriation for Academic Health
19.7Center funding under Minnesota Statutes,
19.8section 297F.10, is $22,250,000 each year.

19.9
Sec. 6. MAYO CLINIC
19.10
Subdivision 1.Total Appropriation
$
1,202,000
$
1,250,000
19.11The amounts that may be spent for each
19.12purpose are specified in the following
19.13subdivisions.
19.14
Subd. 2.Medical School
591,000
615,000
19.15The state of Minnesota must pay a capitation
19.16each year for each student who is a resident
19.17of Minnesota. The appropriation may be
19.18transferred between years of the biennium to
19.19accommodate enrollment fluctuations. The
19.20funding base for this program is $640,000 in
19.21fiscal year 2010 and $665,000 in fiscal year
19.222011.
19.23It is intended that during the biennium the
19.24Mayo Clinic use the capitation money to
19.25increase the number of doctors practicing in
19.26rural areas in need of doctors.
19.27
19.28
Subd. 3.Family Practice and Graduate
Residency Program
611,000
635,000
19.29The state of Minnesota must pay stipend
19.30support for up to 27 residents each year. The
19.31funding base for this program is $660,000 in
19.32fiscal year 2010 and $686,000 in fiscal year
19.332011.

20.1    Sec. 7. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING.
20.2    Subdivision 1. Membership. A 12-member legislative commission on
20.3postsecondary funding is established consisting of six members of the house of
20.4representatives appointed by the speaker and six members of the senate appointed by
20.5the Subcommittee on Committees of the Committee on Rules and Administration. The
20.6commission may elect a chair and other officers as necessary.
20.7    Subd. 2. Charge. The commission must develop an alternative funding formula
20.8or funding method for postsecondary education that creates incentives for high quality
20.9postsecondary education while maintaining access for students. In developing the formula
20.10or funding method, the commission must consider and address:
20.11    (1) both institutional aid and direct student aid;
20.12    (2) the major cost drivers in postsecondary education, such as inflation and
20.13enrollment;
20.14    (3) federal postsecondary funding and tax incentives for postsecondary education;
20.15and
20.16    (4) funding the formula or funding method within the projected constraints on the
20.17state budget in the coming decade.
20.18    Subd. 3. Report. The commission must report its recommendations to the house
20.19Division on Higher Education and Workforce Development Policy and Finance, and the
20.20senate Higher Education Budget and Policy Division by June 30, 2008.
20.21    Subd. 4. Expiration. The commission expires June 30, 2008.

20.22    Sec. 8. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA
20.23NEIGHBORHOOD ALLIANCE.
20.24    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
20.25have the meanings given them.
20.26    (b) "Alliance" means a representative body of the constituencies, including, but
20.27not limited to, the University of Minnesota, the city of Minneapolis, and the recognized
20.28neighborhood organizations and business associations referenced in the report.
20.29    (c) "Board" means the Board of Regents of the University of Minnesota.
20.30    (d) "Report" means the report and appendix entitled Moving Forward Together:
20.31University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to
20.32the legislature in February 2007.
20.33    (e) "University partnership district" or "district" means the area located within the
20.34city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East
21.1Como, Prospect Park, and University, as they are defined by the city, and the university's
21.2Minneapolis campus.
21.3    (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that
21.4house significant numbers of university students and staff. Transportation and housing
21.5policy analysis and planning must include these areas but they must not be included in
21.6the projects funded through the alliance.
21.7    (g) "University" means the University of Minnesota.
21.8    Subd. 2. Alliance; functions. The alliance may facilitate, initiate, or manage
21.9projects with the board, city, or other public or private entities that are intended to
21.10maintain the university partnership district as a viable place to study, research, and live.
21.11Projects may include, but are not limited to, those outlined in the report, as well as
21.12efforts to involve students in activities to maintain and improve the university partnership
21.13district; cooperative university and university partnership district long-term planning; and
21.14incentives to increase homeownership within the district with particular emphasis on
21.15employees of the university and of other major employers located within the district.
21.16    Subd. 3. Report. The board must report to the legislature by January 15, 2009, on
21.17the expenditure of funds appropriated under section 3.

21.18ARTICLE 2
21.19MINNESOTA GI BILL FOR VETERANS

21.20    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to
21.21read:
21.22    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
21.23for:
21.24    (1) necessary state level administration of financial aid and Minnesota GI Bill
21.25programs, including accounting, auditing, and disbursing state and federal financial aid
21.26funds, and reporting on financial aid programs to the governor and the legislature;
21.27    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
21.28and career schools, under sections 136A.61 to 136A.71 and chapter 141;
21.29    (3) administering the Learning Network of Minnesota;
21.30    (4) negotiating and administering reciprocity agreements;
21.31    (5) publishing and distributing financial aid information and materials, and other
21.32information and materials under section 136A.87, to students and parents;
21.33    (6) collecting and maintaining student enrollment and financial aid data and
21.34reporting data on students and postsecondary institutions to develop and implement a
21.35process to measure and report on the effectiveness of postsecondary institutions;
22.1    (7) administering the federal programs that affect students and institutions on a
22.2statewide basis; and
22.3    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
22.4administer the programs under its supervision.
22.5EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
22.6qualifying coursework taken on or after that date.

22.7    Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.
22.8    Subdivision 1. Policy. It is the policy of the state of Minnesota to provide
22.9postsecondary educational assistance to Minnesota veterans who have provided honorable
22.10service to this state and nation as members of the United States armed forces, whether
22.11in peacetime or in war, and to the spouses and children of Minnesota veterans who have
22.12become severely disabled or deceased during or as the direct result of military service.
22.13    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
22.14    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
22.15specified.
22.16    (c) "Cost of attendance" for both undergraduate and graduate students has the
22.17meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
22.18    (d) "Child" means a natural or adopted child of a person described in subdivision 5,
22.19paragraph (a), clause (1), item (i) or (ii).
22.20    (e) "Director" means the director of the Minnesota Office of Higher Education.
22.21    (f) "Eligible institution" means a postsecondary institution located in this state
22.22that either (1) is operated by this state; or (2) is operated publicly or privately and, as
22.23determined by the office, maintains academic standards substantially equivalent to those
22.24of comparable institutions operated in this state.
22.25    (g) "Eligible student" means a person who:
22.26    (1) if the student is an undergraduate student, has applied for the federal Pell Grant
22.27and the Minnesota State Grant;
22.28    (2) is maintaining satisfactory academic progress as defined by the institution for
22.29students participating in federal Title IV programs;
22.30    (3) is enrolled in an education program leading to a certificate, diploma, or degree
22.31at an eligible institution;
22.32    (4) has applied for educational assistance under the Minnesota GI Bill program prior
22.33to the end of the academic term for which the assistance is being requested.
22.34    (5) is in compliance with child support payment requirements under section
22.35136A.121, subdivision 2, clause (5).
23.1    (h) "Part-time student" means an undergraduate student enrolled for fewer than 12
23.2credits in a semester or the equivalent, or a graduate student as defined by the student's
23.3eligible institution.
23.4    (i) "Program" means the Minnesota GI Bill program established in this section,
23.5unless otherwise specified.
23.6    (j) "Service-connected" has the meaning given by the United States Department
23.7of Veterans Affairs.
23.8    (k) "Veteran" has the meaning given in section 197.447, and also includes a service
23.9member who has fulfilled the requirements for being a veteran but is still serving actively
23.10in the United States armed forces.
23.11    Subd. 3. Program established. There is established a program to provide
23.12postsecondary educational assistance to eligible Minnesota veterans and to the children
23.13and spouses of deceased and severely disabled Minnesota veterans. This program may be
23.14cited as the "Minnesota GI Bill program."
23.15    The director, in consultation with the commissioner and in cooperation with
23.16eligible postsecondary educational institutions, shall expend a biennial appropriation
23.17for the purpose of providing postsecondary educational assistance to eligible persons
23.18in accordance with this program. Each public postsecondary educational institution in
23.19the state must participate in the program and each private postsecondary educational
23.20institution in the state is encouraged to participate in the program. Any participating
23.21private institution may suspend or terminate its participation in the program at the end
23.22of any semester or other academic term.
23.23    Subd. 4. Duties; responsibilities. (a) The director, in consultation with the
23.24commissioner, shall establish policies and procedures including, but not limited to,
23.25procedures for student application record keeping, information sharing, payment to
23.26participating eligible institutions, and other procedures the director considers appropriate
23.27and necessary for effective and efficient administration of the program established in
23.28this section.
23.29    (b) The director, in consultation with the commissioner, may delegate part or
23.30all of the administrative procedures for the program to responsible representatives of
23.31participating eligible institutions.
23.32    Subd. 5. Eligibility. (a) A person is eligible for educational assistance under this
23.33section if:
23.34    (1) the person is:
23.35    (i) a veteran who is serving or has served honorably in any branch or unit of the
23.36United States armed forces at any time on or after August 2, 1990;
24.1    (ii) a nonveteran who has served honorably for a total of 16 years or more
24.2cumulatively as a member of the Minnesota national guard or any other active or reserve
24.3component of the United States armed forces, and any part of that service occurred on
24.4or after August 2, 1990;
24.5    (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as
24.6a direct result of that military service; or
24.7    (iv) the spouse or child of a person described in (i) or (ii) who has a total
24.8and permanent service-connected disability as rated by the United States veterans
24.9administration;
24.10    (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's
24.11state of residence at the time of the person's initial enlistment or any reenlistment in
24.12the United States armed forces;
24.13    (3) the person receiving the educational assistance is a Minnesota resident, as
24.14defined in section 136A.101, subdivision 8; and
24.15    (4) the person receiving the educational assistance is an eligible student.
24.16    (b) A person's eligibility terminates when the person becomes eligible for benefits
24.17under section 135A.52.
24.18    (c) As proof of honorable service and disability or death status for a veteran or
24.19service member, the director, by policy and in consultation with the commissioner, may
24.20require official documentation, including the person's federal form DD-214 or other official
24.21military discharge papers, correspondence from the United States veterans administration,
24.22birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed
24.23affidavits, proof of residency, proof of identity, or any other official documentation the
24.24director considers necessary to determine an applicant's eligibility status.
24.25    (d) The director, in consultation with the commissioner, may deny eligibility or
24.26terminate benefits under this section to any person who has not provided sufficient proof of
24.27eligibility for the program. An applicant may appeal the director's eligibility determination
24.28in writing to the director at any time. The director must rule on any application or appeal
24.29within 30 days of receipt of all documentation that the director requires. Upon receiving
24.30an application with insufficient documentation, the director must notify the applicant
24.31within 30 days of receipt of the application that the application is being suspended pending
24.32receipt by the director of sufficient documentation from the applicant. The decision of the
24.33director regarding an appeal is final; however, an applicant whose appeal of an eligibility
24.34determination has been rejected by the director may submit an additional appeal of that
24.35determination in writing to the director at any time that the applicant is able to provide
24.36substantively significant additional information relating to the person's eligibility for the
25.1program. An approval of an applicant's eligibility by the director following an appeal by
25.2the applicant is not retroactively effective beyond the later of one year previously or the
25.3semester of the person's original application.
25.4    Subd. 6. Benefit amount. (a) On approval by the director of an applicant's
25.5eligibility for the program, the applicant shall be awarded, on a funds-available basis, the
25.6educational assistance under the program for use at any time according to program rules
25.7at any eligible institution. Eligibility for the program terminates upon exhaustion of a
25.8person's benefits as specified in paragraph (c).
25.9    (b) The amount of educational assistance in any semester or term for an eligible
25.10person must be determined by subtracting from the eligible person's cost of attendance
25.11at that eligible public institution, or in the case of an eligible private institution the cost
25.12of attendance for a comparable program at the Twin Cities campus of the University of
25.13Minnesota, the amount the person received or was eligible to receive in that semester
25.14or term from:
25.15    (1) the federal Pell Grant;
25.16    (2) the state grant under section 136A.121; and
25.17    (3) any federal military or veterans educational benefits, including, but not limited
25.18to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
25.19vocational rehabilitation benefits, and any other federal benefits associated with the
25.20person's status as a veteran, except veterans disability payments from the United States
25.21Department of Veterans Affairs.
25.22    (c) The amount of education assistance for any eligible person must not exceed any
25.23of the following amounts:
25.24    (1) $1,250 per semester or term of enrollment, or in the case of a part-time student
25.25$625 per semester or term of enrollment;
25.26    (2) $3,570 per state fiscal year; and
25.27    (3) $10,000 total.
25.28EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
25.29qualifying coursework taken on or after that date.

25.30    Sec. 3. ANNUAL REVIEW AND RECOMMENDATION.
25.31    The commissioner of veterans affairs, in consultation with the director of higher
25.32education, must annually review veterans' participation level in and expenditures for the
25.33Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15
25.34each year, must make recommendations to the chairs of the senate and house committees
26.1having oversight responsibility for veterans affairs regarding adjustment of individual
26.2benefit levels and program funding.

26.3ARTICLE 3
26.4RELATED HIGHER EDUCATION

26.5    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:
26.6    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing
26.7involving the Minnesota Office of Higher Education and other institutions is governed
26.8by sections section 136A.05 and 136A.08, subdivision 8.
26.9    (b) Student financial aid. Data collected and used by the Minnesota Office of
26.10Higher Education on applicants for financial assistance are classified under section
26.11136A.162 .
26.12    (c) Minnesota college savings plan data. Account owner data, account data, and
26.13data on beneficiaries of accounts under the Minnesota college savings plan are classified
26.14under section 136G.05, subdivision 10.
26.15    (d) School financial records. Financial records submitted by schools registering
26.16with the Minnesota Office of Higher Education are classified under section 136A.64.
26.17    (e) Enrollment and financial aid data. Data collected from eligible institutions on
26.18student enrollment and federal and state financial aid are governed by sections 136A.121,
26.19subdivision 18, and 136A.1701, subdivision 11.

26.20    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision
26.21to read:
26.22    Subd. 4. Construction management education surcharge and account. (a)
26.23For nonresidential construction building permits, the surcharge under subdivision 1
26.24is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents,
26.25whichever amount is greater, and designated for and deposited in the construction
26.26management education account.
26.27    (b) The construction management education account is created as an account in the
26.28special revenue fund, administered by the Minnesota Office of Higher Education for
26.29the purpose of enhancing construction management education in public postsecondary
26.30institutions. Funds in the account are appropriated to the director of the Minnesota Office
26.31of Higher Education for the purposes of section 136A.127.

26.32    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:
27.1    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture
27.2Education Leadership Council is established. The council is composed of 16 17 members
27.3as follows:
27.4    (1) the chair of the University of Minnesota agricultural education program;
27.5    (2) a representative of the commissioner of education;
27.6    (3) a representative of the Minnesota State Colleges and Universities recommended
27.7by the chancellor;
27.8    (4) the president and the president-elect of the Minnesota Association of Agriculture
27.9Educators;
27.10    (5) a representative of the Future Farmers of America Foundation;
27.11    (6) a representative of the commissioner of agriculture;
27.12    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the
27.13University of Minnesota;
27.14    (8) a representative of the Minnesota Private Colleges Council;
27.15    (9) two members representing agriculture education and agriculture business
27.16appointed by the governor;
27.17    (9) (10) the chair of the senate Committee on Agriculture, General Legislation
27.18and Veterans Affairs;
27.19    (10) (11) the chair of the house Committee on Agriculture;
27.20    (11) (12) the ranking minority member of the senate Committee on Agriculture,
27.21General Legislation and Veterans Affairs, and a member of the senate Education
27.22Committee designated by the Subcommittee on Committees of the Committee on Rules
27.23and Administration; and
27.24    (12) (13) the ranking minority member of the house Agriculture Committee, and a
27.25member of the house Education Committee designated by the speaker.
27.26    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7),
27.27(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement
27.28member representing the same constituency.

27.29    Sec. 4. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
27.30    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
27.31revise and appropriately embed technology and information literacy standards consistent
27.32with recommendations from school media specialists into the state's academic standards
27.33and graduation requirements and implement a review cycle for state academic standards
27.34and related benchmarks, consistent with this subdivision. During each review cycle, the
27.35commissioner also must examine the alignment of each required academic standard and
28.1related benchmark with the knowledge and skills students need for college readiness and
28.2advanced work in the particular subject area.
28.3    (b) The commissioner in the 2006-2007 school year must revise and align the state's
28.4academic standards and high school graduation requirements in mathematics to require
28.5that students satisfactorily complete the revised mathematics standards, beginning in the
28.62010-2011 school year. Under the revised standards:
28.7    (1) students must satisfactorily complete an algebra I credit by the end of eighth
28.8grade; and
28.9    (2) students scheduled to graduate in the 2014-2015 school year or later must
28.10satisfactorily complete an algebra II credit or its equivalent.
28.11The commissioner also must ensure that the statewide mathematics assessments
28.12administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
28.13school year are aligned with the state academic standards in mathematics. The statewide
28.1411th grade mathematics test administered to students under clause (2) beginning in
28.15the 2013-2014 school year must include algebra II test items that are aligned with
28.16corresponding state academic standards in mathematics. The commissioner, in
28.17collaboration with the Minnesota State Colleges and Universities, must ensure that passing
28.18score for the statewide 11th grade mathematics test represents readiness for college so that
28.19a student who achieves a passing score on this test, upon graduation, is immediately ready
28.20to take college courses for college credit in a two-year or a four-year institution, consistent
28.21with section 135A.104. The commissioner must implement a review of the academic
28.22standards and related benchmarks in mathematics beginning in the 2015-2016 school year.
28.23    (c) The commissioner in the 2007-2008 school year must revise and align the state's
28.24academic standards and high school graduation requirements in the arts to require that
28.25students satisfactorily complete the revised arts standards beginning in the 2010-2011
28.26school year. The commissioner must implement a review of the academic standards and
28.27related benchmarks in arts beginning in the 2016-2017 school year.
28.28    (d) The commissioner in the 2008-2009 school year must revise and align the state's
28.29academic standards and high school graduation requirements in science to require that
28.30students satisfactorily complete the revised science standards, beginning in the 2011-2012
28.31school year. Under the revised standards, students scheduled to graduate in the 2014-2015
28.32school year or later must satisfactorily complete a chemistry or physics credit. The
28.33commissioner must implement a review of the academic standards and related benchmarks
28.34in science beginning in the 2017-2018 school year.
28.35    (e) The commissioner in the 2009-2010 school year must revise and align the state's
28.36academic standards and high school graduation requirements in language arts to require
29.1that students satisfactorily complete the revised language arts standards beginning in the
29.22012-2013 school year. The commissioner, in collaboration with the Minnesota State
29.3Colleges and Universities, must ensure that the passing score for the statewide tenth
29.4grade reading and language arts test represents readiness for college so that a student who
29.5achieves a passing score on this test, upon graduation, is immediately ready to take college
29.6courses for college credit in a two-year or a four-year institution, consistent with section
29.7135A.104. The commissioner must implement a review of the academic standards and
29.8related benchmarks in language arts beginning in the 2018-2019 school year.
29.9    (f) The commissioner in the 2010-2011 school year must revise and align the state's
29.10academic standards and high school graduation requirements in social studies to require
29.11that students satisfactorily complete the revised social studies standards beginning in the
29.122013-2014 school year. The commissioner must implement a review of the academic
29.13standards and related benchmarks in social studies beginning in the 2019-2020 school year.
29.14    (g) School districts and charter schools must revise and align local academic
29.15standards and high school graduation requirements in health, physical education, world
29.16languages, and career and technical education to require students to complete the revised
29.17standards beginning in a school year determined by the school district or charter school.
29.18School districts and charter schools must formally establish a periodic review cycle for
29.19the academic standards and related benchmarks in health, physical education, world
29.20languages, and career and technical education.

29.21    Sec. 5. Minnesota Statutes 2006, section 120B.024, is amended to read:
29.22120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
29.23    (a) Students beginning 9th grade in the 2004-2005 school year and later must
29.24successfully complete the following high school level course credits for graduation:
29.25    (1) four credits of language arts;
29.26    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
29.27and probability sufficient to satisfy the academic standard;
29.28    (3) three credits of science, including at least one credit in biology;
29.29    (4) three and one-half credits of social studies, encompassing at least United
29.30States history, geography, government and citizenship, world history, and economics or
29.31three credits of social studies encompassing at least United States history, geography,
29.32government and citizenship, and world history, and one-half credit of economics taught in
29.33a school's social studies, agriculture education, or business department;
29.34    (5) one credit in the arts; and
29.35    (6) a minimum of seven elective course credits.
30.1    A course credit is equivalent to a student successfully completing an academic
30.2year of study or a student mastering the applicable subject matter, as determined by the
30.3local school district.
30.4    (b) An agriculture science course may fulfill a science credit requirement in addition
30.5to the specified science credits in biology and chemistry or physics under paragraph (a),
30.6clause (3).
30.7    (c) The commissioner, in collaboration with the Minnesota State Colleges and
30.8Universities, must develop and implement a statewide plan to communicate with all
30.9Minnesota high school students no later than the beginning of ninth grade the state's
30.10expectations for college readiness, consistent with sections 120B.023, subdivision 2,
30.11paragraphs (b) and (e), and 135A.104.

30.12    Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:
30.13    Subd. 7. Reports. Instructional expenditure and enrollment data for each
30.14instructional category shall be submitted by the public postsecondary systems to the
30.15Minnesota Office of Higher Education and the Department of Finance and included in the
30.16biennial budget document. The specific data shall be submitted only after the director of
30.17the Minnesota Office of Higher Education has consulted with a data advisory task force to
30.18determine the need, content, and detail of the information.

30.19    Sec. 7. [135A.043] RESIDENT TUITION.
30.20    (a) A student shall qualify for a resident tuition rate or its equivalent at state
30.21universities and colleges, including the University of Minnesota, if the student meets
30.22all of the following requirements:
30.23    (1) high school attendance within the state for three or more years;
30.24    (2) graduation from a state high school or attainment within the state of the
30.25equivalent of high school graduation; and
30.26    (3) registration as an entering student at, or current enrollment in, a public institution
30.27of higher education.
30.28    (b) This section is in addition to any other statute, rule, or higher education
30.29institution regulation or policy providing eligibility for a resident tuition rate or its
30.30equivalent to a student.
30.31    (c) To qualify for resident tuition under this section an individual who is not a citizen
30.32or permanent resident of the United States must provide the college or university with
30.33an affidavit that the individual will file an application to become a permanent resident at
30.34the earliest opportunity the individual is eligible to do so.
31.1EFFECTIVE DATE.This section is effective the day following final enactment
31.2and applies to tuition for school terms commencing on or after that date.

31.3    Sec. 8. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:
31.4    Subd. 2. Performance and accountability. Higher education systems and
31.5campuses are expected to achieve the objectives in subdivision 1 and will be held
31.6accountable for doing so. The legislature is increasing the flexibility of the systems and
31.7campuses to provide greater responsibility to higher education in deciding how to achieve
31.8statewide objectives, and to decentralize authority so that those decisions can be made
31.9at the level where the education is delivered. To demonstrate their accountability, the
31.10legislature expects each system and campus to measure and report on its performance,
31.11using meaningful indicators that are critical to achieving the objectives in subdivision 1,
31.12as provided in section 135A.033. Nothing in this section precludes a system or campus
31.13from determining its own objectives and performance measures beyond those identified
31.14in this section.

31.15    Sec. 9. [135A.104] COLLEGE READINESS.
31.16    (a) Minnesota State Colleges and Universities must collaborate with the
31.17commissioner of education in establishing passing scores on the Minnesota comprehensive
31.18assessments in reading for grade 10 and in mathematics for grade 11 under section
31.19120B.30 so that "passing score" performances on those two assessments represent a
31.20student's college readiness. For purposes of this section and chapter 120B, "college
31.21readiness" means that a student who graduates from a public high school is immediately
31.22ready to take college courses for college credit in a two-year or a four-year institution.
31.23Minnesota State Colleges and Universities also must collaborate with the commissioner of
31.24education to develop and implement a statewide plan to communicate with all Minnesota
31.25high school students no later than the beginning of ninth grade the state's expectations for
31.26college readiness.
31.27    (b) The entrance and admission materials that the Minnesota State Colleges and
31.28Universities provide to prospective students must clearly indicate the level of academic
31.29preparation that the students must have in order to be ready to immediately take college
31.30courses for college credit in two-year and four-year institutions.

31.31    Sec. 10. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:
31.32    Subdivision 1. Definitions. As used in this section, the following terms have the
31.33meanings given them.
32.1    (a) "Administrator" means the administrator of the institution or other person with
32.2general control and supervision of the institution.
32.3    (b) "Public or private postsecondary educational institution" or "institution" means
32.4any of the following institutions having an enrollment of more than 100 persons during
32.5any quarter, term, or semester during the preceding year: (1) the University of Minnesota;
32.6(2) the state universities; (3) the state community colleges; (4) public technical colleges;
32.7(5) private four-year, professional and graduate institutions; (6) private two-year colleges;
32.8and (7) schools subject to either chapter 141, sections 136A.61 136A.615 to 136A.71, or
32.9schools exempt under section 136A.657, and which offer educational programs within the
32.10state for an academic year greater than six consecutive months. An institution's report to
32.11the Minnesota Office of Higher Education or the Minnesota Department of Education may
32.12be considered when determining enrollment.
32.13    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota
32.14high school in 1997 or later, and who is (1) registering for more than one class during
32.15a full academic term, such as a quarter or a semester or (2) housed on campus and is
32.16registering for one or more classes. Student does not include persons enrolled in extension
32.17classes only or correspondence classes only.

32.18    Sec. 11. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:
32.19    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years
32.20of age before the beginning of any term, semester or quarter, in which a course of study
32.21is pursued, or a person receiving a railroad retirement annuity who has reached 60 years
32.22of age before the beginning of the term.

32.23    Sec. 12. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:
32.24    Subdivision 1. Fees and tuition. Except for an administration fee established by the
32.25governing board at a level to recover costs, to be collected only when a course is taken for
32.26credit, a senior citizen who is a legal resident of Minnesota is entitled without payment
32.27of tuition or activity fees to attend courses offered for credit, audit any courses offered
32.28for credit, or enroll in any noncredit courses in any state supported institution of higher
32.29education in Minnesota when space is available after all tuition-paying students have been
32.30accommodated. A senior citizen enrolled under this section must pay any materials,
32.31personal property, or service charges for the course. In addition, a senior citizen who is
32.32enrolled in a course for credit must pay an administrative fee in an amount established
32.33by the governing board of the institution to recover the course costs. There shall be no
32.34administrative fee charges to a senior citizen auditing a course. For the purposes of this
33.1section and section 135A.51, the term "noncredit courses" shall not include those courses
33.2designed and offered specifically and exclusively for senior citizens.
33.3    The provisions of this section and section 135A.51 do not apply to noncredit courses
33.4designed and offered by the University of Minnesota, and the Minnesota State Colleges
33.5and Universities specifically and exclusively for senior citizens. Senior citizens enrolled
33.6under the provisions of this section and section 135A.51 shall not be included by such
33.7institutions in their computation of full-time equivalent students when requesting staff
33.8or appropriations.

33.9    Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:
33.10    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there
33.11shall be no limit to the number of terms, quarters or semesters a senior citizen may attend
33.12courses, nor income limitation imposed in determining eligibility.
33.13    (b) A senior citizen enrolled in a closed enrollment contract training or professional
33.14continuing education program is not eligible for benefits under subdivision 1.

33.15    Sec. 14. [136A.002] DEFINITIONS.
33.16    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
33.17have the meanings given them.
33.18    Subd. 2. Office of Higher Education or office. "Office of Higher Education" or
33.19"office" means the Minnesota Office of Higher Education.

33.20    Sec. 15. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:
33.21    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
33.22for:
33.23    (1) necessary state level administration of financial aid programs, including
33.24accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
33.25financial aid programs to the governor and the legislature;
33.26    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
33.27and career schools, under sections 136A.61 136A.615 to 136A.71 and chapter 141;
33.28    (3) administering the Learning Network of Minnesota;
33.29    (4) negotiating and administering reciprocity agreements;
33.30    (5) publishing and distributing financial aid information and materials, and other
33.31information and materials under section 136A.87, to students and parents;
34.1    (6) collecting and maintaining student enrollment and financial aid data and
34.2reporting data on students and postsecondary institutions to develop and implement a
34.3process to measure and report on the effectiveness of postsecondary institutions;
34.4    (7) administering the federal programs that affect students and institutions on a
34.5statewide basis; and
34.6    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
34.7administer the programs under its supervision.

34.8    Sec. 16. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:
34.9    Subd. 5. Expiration. Notwithstanding section 15.059, subdivision 5, the advisory
34.10groups established in this section do not expire on June 30, 2007.

34.11    Sec. 17. Minnesota Statutes 2006, section 136A.0411, is amended to read:
34.12136A.0411 COLLECTING FEES.
34.13    The office may charge fees for seminars, conferences, workshops, services, and
34.14materials. The office may collect fees for registration and licensure of private institutions
34.15under sections 136A.61 136A.615 to 136A.71 and chapter 141. The money is annually
34.16appropriated to the office.

34.17    Sec. 18. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:
34.18    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually,
34.19before the last day in January, submit a report to the committees in the house of
34.20representatives and the senate with responsibility for higher education finance on:
34.21    (1) participation in the tuition reciprocity program by Minnesota students and
34.22students from other states attending Minnesota postsecondary institutions under a
34.23reciprocity agreement;
34.24    (2) reciprocity and resident tuition rates at each institution; and
34.25    (3) interstate payments and obligations for each state participating in the tuition
34.26reciprocity program in the prior year.; and
34.27    (4) summary statistics on number of graduates by institution, degree granted, and
34.28year of graduation for reciprocity students who attended Minnesota postsecondary
34.29institutions.

34.30    Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:
34.31    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
34.32educational institution located in this state or in a state with which the office has entered
35.1into a higher education reciprocity agreement on state student aid programs that either (1)
35.2is operated by this state or the Board of Regents of the University of Minnesota, or (2) is
35.3operated publicly or privately and, as determined by the office, meets all of the following:
35.4(i) maintains academic standards substantially equivalent to those of comparable
35.5institutions operated in this state; (ii) is licensed or registered as a postsecondary institution
35.6by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal
35.7Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.

35.8    Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
35.9    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
35.10responsibility for covering the recognized cost of attendance by the applicant, the
35.11applicant's family, and the government. The amount of a financial stipend must not
35.12exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
35.13deducting the following:
35.14    (1) the assigned student responsibility of at least 46 45.5 percent of the cost of
35.15attending the institution of the applicant's choosing;
35.16    (2) the assigned family responsibility as defined in section 136A.101; and
35.17    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.
35.18    The minimum financial stipend is $100 per academic year.

35.19    Sec. 21. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:
35.20    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
35.21the applicant:
35.22    (1) is a resident of the state of Minnesota;
35.23    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
35.24disabled as defined in section 125A.02, and who is receiving or will receive care on a
35.25regular basis from a licensed or legal, nonlicensed caregiver;
35.26    (3) is income eligible as determined by the office's policies and rules, but is not a
35.27recipient of assistance from the Minnesota family investment program;
35.28    (4) has not earned a baccalaureate degree and has been enrolled full time less than
35.29eight semesters or the equivalent;
35.30    (5) is pursuing a nonsectarian program or course of study that applies to an
35.31undergraduate degree, diploma, or certificate;
35.32    (6) is enrolled at least half time in an eligible institution; and
35.33    (7) is in good academic standing and making satisfactory academic progress.
36.1    (b) A student who withdraws from enrollment for active military service is entitled
36.2to an additional semester or the equivalent of grant eligibility and will be considered to be
36.3in continuing enrollment status upon return.

36.4    Sec. 22. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS;
36.5MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.
36.6    Subdivision 1. TEACH. The teacher education and compensation helps program
36.7(TEACH) is established to provide tuition scholarships, education incentives, and an early
36.8childhood teacher retention program to provide retention incentives to early care and
36.9education providers. The director shall make a grant with appropriations for this purpose
36.10to a nonprofit organization licensed to administer the TEACH early childhood program.
36.11    Subd. 2. Program components. (a) The nonprofit organization must use the
36.12grant for:
36.13    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally
36.14recognized child development associate credential or college-level courses leading to an
36.15associate's or bachelor's degree in early childhood development and school-age care; and
36.16    (2) education incentives of a minimum of $100 to participants in the tuition
36.17scholarship program if they complete a year of working in the early care and education
36.18field.
36.19    (b) Applicants for the scholarship must be employed by a licensed early childhood
36.20or child care program and working directly with children, a licensed family child care
36.21provider, or an employee in a school-age program exempt from licensing under section
36.22245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in
36.23awarding the tuition scholarships. Scholarship recipients must contribute ten percent of
36.24the total scholarship and must be sponsored by their employers, who must also contribute
36.25ten percent of the total scholarship. Scholarship recipients who are self-employed must
36.26contribute 20 percent of the total scholarship.
36.27    (c) The organization must also use the grant for teacher retention incentives of
36.28$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives
36.29must be employed by a licensed early childhood or child care program and working
36.30directly with children, a licensed family child care provider, or an employee in a
36.31school-age program exempt from licensing under section 245A.03, subdivision 2, clause
36.32(12). Lower wage earners must be given priority for the retention incentives. The amount
36.33of the retention incentive must be based on the applicant's level of education at the time of
36.34application. A provider is eligible for the retention incentive if the provider:
37.1    (1) has worked in the field for at least one year and has been working at the same
37.2location for at least one year at the time of application;
37.3    (2) agrees to remain in the provider's current position for a period of at least one
37.4year; and
37.5    (3) has an associate's or bachelor's degree or a child development associate's degree.
37.6    Subd. 3. Advisory committee. The TEACH early childhood and Minnesota early
37.7childhood teacher retention programs must have an advisory board as prescribed by the
37.8national TEACH organization.

37.9    Sec. 23. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION
37.10PROGRAM.
37.11    Subdivision 1. Construction Management Education Account Advisory
37.12Committee. The director must establish an advisory committee for the construction
37.13management education account. Members of the committee must include: the executive
37.14vice-president of the Minnesota Mechanical Contractors association or designee, a
37.15chapter manager of one of the Minnesota chapters of the National Electrical Contractors
37.16Association or designee, the executive director of the Associated General Contractors of
37.17Minnesota or designee, two members of the nonresidential construction industry, and a
37.18construction management program coordinator or director from an accredited construction
37.19management program in the Minnesota State Colleges and Universities. Members serve
37.20three-year terms. Advisory committee members are reimbursed for expenses related to
37.21committee activities. The director may accept funds from federal, state, or local public
37.22agencies, or from private foundations or individuals for deposit into the construction
37.23management education account under section 16B.70. All money in the account must
37.24be used for the purposes of this section.
37.25    Subd. 2. Grants. Grants from the construction management education account must
37.26be used to maintain and increase the quality and availability of education programs for
37.27the construction industry by awarding grants to accredited construction management
37.28programs in the Minnesota State Colleges and Universities. Grants must be used to
37.29maintain and upgrade facilities and provide greater industry access to modern construction
37.30standards and management practices. In making grants, the director, in consultation with
37.31the committee, must:
37.32    (1) confirm the qualifications of any program applying for a grant;
37.33    (2) affirm applications for American Council for Construction Education
37.34accreditation and, when funds are available, award grants to complete the accreditation
37.35process;
38.1    (3) promote close ties between technical and community colleges and four-year
38.2construction management programs; and
38.3    (4) support the development of new educational programs with specific emphasis on
38.4outreach to the construction industry at large.
38.5    Subd. 3. Grant awards. (a) The committee may award grants to a Minnesota State
38.6Colleges and Universities institution to support construction management education and to
38.7promote outreach and continuing education in the construction industry.
38.8    (b) An eligible institution must provide one of the following:
38.9    (1) a bachelor of science construction management degree accredited by the
38.10American Council for Construction Education;
38.11    (2) a degree with an American Council for Construction Education accredited
38.12option, including, but not limited to, Engineering Technology and Industrial Technology;
38.13    (3) a bachelor of science degree program documenting placement of more than 50
38.14percent of their graduates with Minnesota nonresidential contractors; and
38.15    (4) the development of a construction management curriculum to meet the American
38.16Council for Construction Education criteria.
38.17    (c) Grant awards may be made as follows:
38.18    (1) $3,000 per graduate during the past academic year up to a maximum of $100,000
38.19for institutions qualifying under paragraph (b), clause (1);
38.20    (2) $3,000 per graduate during the past academic year up to a maximum of $100,000
38.21for institutions qualifying under paragraph (b), clause (2);
38.22    (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the
38.23past academic year to a maximum of $20,000 for institutions qualifying under paragraph
38.24(b), clause (3);
38.25    (4) up to $25,000 for the purpose of becoming accredited by the American Council
38.26for Construction Education for two years which may be renewed if the institution is
38.27continuing progress towards accreditation; and
38.28    (5) for faculty recruitment and development in construction management programs,
38.29including support for postgraduate work leading to advanced degrees, visiting lecturer
38.30compensation and expenses, teaching assistant positions, and faculty positions; and
38.31    (6) to support general classroom and laboratory operating expenses.
38.32    Grants may only be awarded from the construction management education account
38.33to the extent that funds are available. No other state funding may be provided for these
38.34grants.
38.35    Subd. 4. Reports. (a) The director must annually report to the committees of the
38.36legislature responsible for higher education finance by January 15. The report must
39.1include the names of the public postsecondary educational institutions receiving grants, the
39.2amount of the grant, the purposes for each grant, the number of students served, and the
39.3number of placements made to the construction industry for the previous academic year.
39.4    (b) After receiving an initial grant, the president of the public postsecondary
39.5educational institution must annually submit a report to the director listing the amount of
39.6all past grants awarded from the construction management education account and the uses
39.7of those funds. The report must be submitted with a request for a new or continuing grant
39.8and at a minimum must include the following:
39.9    (1) the number of graduates placed with the Minnesota contractors during the
39.10previous academic year;
39.11    (2) the expected enrollment in construction management courses in the upcoming
39.12academic year; and
39.13    (3) continuing education and extension courses offered in construction management
39.14during the previous academic year and their enrollments.
39.15    Subd. 5. Administration. Up to $15,000 per year from the construction
39.16management education account may be used for the administration of this program.

39.17    Sec. 24. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:
39.18    Subdivision 1. Scope. For purposes of sections 136A.15 to 136A.1702, the terms
39.19defined in this section have the meanings ascribed to given them.

39.20    Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:
39.21    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary
39.22educational institution that either (1) is operated or regulated by this state, or the Board of
39.23Regents of the University of Minnesota; (2) is operated publicly or privately in another
39.24state, is approved by the United States Secretary of Education, and, as determined by
39.25the office, maintains academic standards substantially equal to those of comparable
39.26institutions operated in this state; (3) is licensed or registered as a postsecondary institution
39.27by the office or another state agency; and (4) by July 1, 2011, is participating in the federal
39.28Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It
39.29also includes any institution chartered in a province.

39.30    Sec. 26. [136A.1704] LOAN FORGIVENESS PROGRAM FOR
39.31SPEECH-LANGUAGE PATHOLOGISTS.
39.32    Subdivision 1. Creation of account. A loan forgiveness program account is
39.33established in the special revenue fund in the state treasury to promote the recruitment and
40.1retention of licensed speech-language pathologists to work with students with speech or
40.2hearing disorders. Money appropriated to this account does not cancel but is available
40.3until expended. Money in the account is appropriated to the director of the Minnesota
40.4Office of Higher Education for the purpose of this section.
40.5    Subd. 2. Eligibility for loan forgiveness. A student loan administered by the
40.6Minnesota Office of Higher Education under section 136A.16, subdivision 1, may be
40.7forgiven if the recipient graduates from a postsecondary institution with a degree in
40.8speech-language pathology, becomes licensed to work with students with speech and
40.9hearing disorders as defined in Minnesota Rules, part 3525.1343, and is employed as a
40.10speech-language pathologist with primary responsibilities to work with students who are
40.11diagnosed with speech or hearing disorders.
40.12    Subd. 3. Loan forgiveness. (a) To the extent of available appropriations, one-fourth
40.13of the principal of the outstanding loan amount shall be forgiven for each year of eligible
40.14employment or a pro rata amount for eligible employment during part of a school year,
40.15part-time employment, or other eligible part-time work. Loans for $2,500 or less may be
40.16forgiven at the rate of up to $1,250 per year. Employment with the following Minnesota
40.17schools and programs is eligible for determining loan forgiveness:
40.18    (1) a school or program operated by a school district or a group of school districts;
40.19    (2) a tribal contract school eligible to receive aid according to section 124D.83;
40.20    (3) a charter school;
40.21    (4) a private school;
40.22    (5) a Head Start program;
40.23    (6) an early childhood family education program; or
40.24    (7) a program providing early intervention services to children with disabilities
40.25who have not entered kindergarten.
40.26    (b) If an eligible recipient has an outstanding loan administered by the Minnesota
40.27Office of Higher Education, the duty to make payments of principal and interest may
40.28be deferred during any time period the person is enrolled at least one-half time in an
40.29advanced degree program in a field related to working with students with speech or
40.30hearing disabilities. To defer loan obligations, the person shall provide written notification
40.31to the Minnesota Office of Higher Education.
40.32    (c) The Minnesota Office of Higher Education shall approve the loan forgiveness
40.33and deferral, and develop procedures to administer the program.

40.34    Sec. 27. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:
41.1    Subd. 3. Payments. Work-study payments shall be made to eligible students by
41.2postsecondary institutions as provided in this subdivision.
41.3    (a) Students shall be selected for participation in the program by the postsecondary
41.4institution on the basis of student financial need.
41.5    (b) In selecting students for participation, priority must be given to students enrolled
41.6for at least 12 credits. In each academic year, a student may be awarded work-study
41.7payments for one period of nonenrollment or less than half-time enrollment if the student
41.8will enroll on at least a half-time basis during the following academic term.
41.9    (c) Students will be paid for hours actually worked and the maximum hourly rate
41.10of pay shall not exceed the maximum hourly rate of pay permitted under the federal
41.11college work-study program.
41.12    (d) Minimum pay rates will be determined by an applicable federal or state law.
41.13    (e) The office shall annually establish a minimum percentage rate of student
41.14compensation to be paid by an eligible employer.
41.15    (f) Each postsecondary institution receiving money for state work-study grants
41.16shall make a reasonable effort to place work-study students in employment with eligible
41.17employers outside the institution. However, a public employer other than the institution
41.18may not terminate, lay off, or reduce the working hours of a permanent employee for the
41.19purpose of hiring a work-study student, or replace a permanent employee who is on layoff
41.20from the same or substantially the same job by hiring a work-study student.
41.21    (g) The percent of the institution's work-study allocation provided to graduate
41.22students shall not exceed the percent of graduate student enrollment at the participating
41.23institution.
41.24    (h) An institution may use up to 30 percent of its allocation for student internships
41.25with private, for-profit employers.

41.26    Sec. 28. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:
41.27    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered
41.28to issue revenue bonds whose aggregate principal amount at any time shall not exceed
41.29$800,000,000 $950,000,000 and to issue notes, bond anticipation notes, and revenue
41.30refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42,
41.31to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling,
41.32renovating, improving, furnishing, or equipping one or more projects or parts thereof.

41.33    Sec. 29. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:
42.1    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education
42.2shall award grants to foster postsecondary attendance and retention by providing outreach
42.3services to historically underserved students in grades six through 12 and historically
42.4underrepresented college students. Grants must be awarded to programs that provide
42.5precollege services, including, but not limited to:
42.6    (1) academic counseling;
42.7    (2) mentoring;
42.8    (3) fostering and improving parental involvement in planning for and facilitating a
42.9college education;
42.10    (4) services for students with English as a second language;
42.11    (5) academic enrichment activities;
42.12    (6) tutoring;
42.13    (7) career awareness and exploration;
42.14    (8) orientation to college life;
42.15    (9) assistance with high school course selection and information about college
42.16admission requirements; and
42.17    (10) financial aid counseling.
42.18    Grants shall be awarded to postsecondary institutions, professional organizations,
42.19community-based organizations, or others deemed appropriate by the director.
42.20    Grants shall be awarded for one year and may be renewed for a second year with
42.21documentation to the Minnesota Office of Higher Education of successful program
42.22outcomes.

42.23    Sec. 30. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:
42.24    Subd. 2. Eligible students. Eligible students include students in grades six through
42.2512 who meet one or more of the following criteria:
42.26    (1) are counted under section 1124(c) of the Elementary and Secondary Education
42.27Act of 1965 (Title I);
42.28    (2) are eligible for free or reduced-price lunch under the National School Lunch Act;
42.29    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title
42.30I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
42.31    (4) are a member of a group traditionally underrepresented in higher education.
42.32    Eligible undergraduate students include those who met the student eligibility criteria
42.33as 6th through 12th graders.

42.34    Sec. 31. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:
43.1    Subd. 3. Application process. The director of the Minnesota Office of Higher
43.2Education shall develop a grant application process. The director shall attempt to support
43.3projects in a manner that ensures that eligible students throughout the state have access
43.4to precollege program services.
43.5    The grant application must include, at a minimum, the following information:
43.6    (1) a description of the characteristics of the students to be served reflective of the
43.7need for services listed in subdivision 1;
43.8    (2) a description of the services to be provided and a timeline for implementation of
43.9the activities;
43.10    (3) a description of how the services provided will foster postsecondary attendance
43.11and support postsecondary retention;
43.12    (4) a description of how the services will be evaluated to determine whether the
43.13program goals were met; and
43.14    (5) other information as identified by the director.
43.15Grant recipients must specify both program and student outcome goals, and performance
43.16measures for each goal.

43.17    Sec. 32. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:
43.18    Subd. 6. Program evaluation. Each grant recipient must annually submit a report
43.19to the Minnesota Office of Higher Education delineating its program and student outcome
43.20goals, and activities implemented to achieve the stated outcomes. The goals must be
43.21clearly stated and measurable. Grant recipients are required to collect, analyze, and report
43.22on participation and outcome data that enable the office to verify that the program goals
43.23were met. The office shall maintain:
43.24    (1) information about successful precollege program and undergraduate student
43.25retention program activities for dissemination to individuals throughout the state interested
43.26in adopting or replicating successful program practices; and
43.27    (2) data on the success of the funded projects in increasing the high school
43.28graduation and, college participation, and college graduation rates of students served
43.29by the grant recipients. The office may convene meetings of the grant recipients, as
43.30needed, to discuss issues pertaining to the implementation of precollege services and
43.31undergraduate retention programs.

43.32    Sec. 33. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:
43.33    Subdivision 1. Membership. The board consists of 15 17 members appointed by
43.34the governor with the advice and consent of the senate. At least one member of the board
44.1must be a resident of each congressional district. Three members must be students who are
44.2enrolled at least half time in a degree, diploma, or certificate program or have graduated
44.3from an institution governed by the board within one year of the date of appointment. The
44.4student members shall include: one member from a community college, one member from
44.5a state university, and one member from a technical college. Two members must be
44.6members of the AFL-CIO. The remaining members must be appointed to represent the
44.7state at large.

44.8    Sec. 34. [136F.045] UNION MEMBER SELECTION.
44.9    Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting,
44.10screening, and recommending qualified candidates for their members of the board. The
44.11AFL-CIO must develop a statement of selection criteria for board membership and a
44.12process for recommending candidates. Beginning in 2008, and every six years thereafter,
44.13the AFL-CIO must recommend four candidates for the two board positions to the governor
44.14by April 15. The governor must appoint two of the candidates to the board of trustees.

44.15    Sec. 35. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:
44.16    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board,
44.17in consultation with the commissioners of employee relations and finance, may develop
44.18policies to allow system office or campus employees on salaries, as defined in section
44.1943A.17, subdivision 1 , to use negative time reporting in which employees report only that
44.20time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation
44.21with the commissioners of employee relations and finance, shall evaluate the use of
44.22negative time reporting and its potential for use with other state employees.

44.23    Sec. 36. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:
44.24    Subd. 2. Activity funds. All receipts attributable to the state colleges and
44.25universities activity funds and deposited in the state treasury are appropriated to the board
44.26and are not subject to budgetary control as exercised by the commissioner of finance.

44.27    Sec. 37. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision
44.28to read:
44.29    Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall
44.30have authority to control the amount and manner of deposit of all receipts described in
44.31this section in depositories selected by the board. The board's authority shall include
44.32specifying the considerations, financial activities, and conditions required from the
45.1depository, including the requirement of collateral security or a corporate surety bond
45.2as described in section 118A.03. The board may compensate the depository, including
45.3paying a reasonable charge to the depository, maintaining appropriate compensating
45.4balances with the depository, or purchasing non-interest-bearing certificates of deposit
45.5from the depository for performing depository-related services.

45.6    Sec. 38. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:
45.7    Subd. 5. Amount of matching grant. The amount of the matching grant for a
45.8beneficiary equals:
45.9    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum
45.10of the contributions made to the beneficiary's account during the calendar year, not to
45.11exceed $300 $400; and
45.12    (2) if the beneficiary's family income is more than $50,000 but not more than
45.13$80,000, five ten percent of the sum of the contributions made to the beneficiary's account
45.14during the calendar year, not to exceed $300 $400.

45.15    Sec. 39. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE
45.16AT WORTHINGTON; YMCA LEASE AGREEMENT.
45.17    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter
45.18into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on
45.19the Minnesota West Community and Technical College at Worthington campus for the
45.20construction of a YMCA facility. The lease may also include the city of Worthington.
45.21    (b) Siting and design of the facility must be consistent with the college's master
45.22plan and Minnesota State Colleges and Universities' building standards. Minnesota
45.23West Community and Technical College may negotiate for use of the facility for college
45.24purposes. The lease must contain a provision that the lease shall terminate if the improved
45.25property is no longer used for the partial benefit of the students at the Worthington campus.

45.26    Sec. 40. INTEREST RATE SWAP AND OTHER AGREEMENTS;
45.27IMPLEMENTATION PLAN.
45.28    The Minnesota Office of Higher Education must develop a plan for implementing
45.29interest rate exchanges, swaps, or other interest rate protection agreements for its student
45.30loan programs. The plan must be presented in a report to the committees of legislature
45.31responsible for higher education finance by January 15, 2008. The report must address
45.32potential contracting arrangements and options, benefits and risks associated with these
46.1agreements, and the potential impacts on the student loan program, its assets, and its
46.2objectives.

46.3    Sec. 41. REPEALER.
46.4(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6;
46.5135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, are repealed.
46.6(b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, are repealed.

46.7ARTICLE 4
46.8TEXTBOOK PRICING AND ACCESS

46.9    Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.
46.10    Subdivision 1. Short title. This section may be cited as the Textbook Disclosure,
46.11Pricing, and Access Act.
46.12    Subd. 2. Purpose and intent. The purpose of this act is to ensure that every student
46.13in higher education is offered better and more timely access to affordable course materials
46.14by educating and informing faculty, students, administrators, institutions, bookstores, and
46.15publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the
46.16policy of the state of Minnesota that all involved parties must work together to identify
46.17ways to decrease the cost of course materials for students while protecting the academic
46.18freedom of faculty members to provide high-quality course materials for students.
46.19    Subd. 3. Definitions. For the purposes of this section, the following definitions
46.20have the meanings given.
46.21    (1) "Bundled" means any course material packaged together to be sold for one price.
46.22    (2) "Bookstore" means a store that is affiliated with a postsecondary institution or
46.23has a contract with a postsecondary institution to sell course materials to students enrolled
46.24at the postsecondary institution.
46.25    (3) "Course material" means textbooks as defined in section 297A.67, subdivision
46.2613, custom course materials, and instructional materials as defined in section 297A.67,
46.27subdivision 13a, sold to students by a bookstore in a bundled or unbundled form.
46.28    (4) "Custom course materials" means any combination of textbooks, course
46.29materials, or any part thereof that has been customized, produced, and sold by a distributor
46.30or publisher specifically for a specific course, program, or field of study.
46.31    (5) "Distributor" means an independent contractor, including its employees or agents,
46.32that is in the business of selling, distributing, advertising, marketing, or maintaining an
46.33inventory of course materials for a postsecondary institution or bookstore.
47.1    (6) "Postsecondary institution" means a Minnesota institution defined under section
47.2136A.101, subdivision 4.
47.3    (7) "Publisher" means a publishing house, firm, or business, including its employees
47.4or agents, acting with authority of the publisher that publishes, sells, markets, or maintains
47.5an inventory of course materials to a postsecondary institution or bookstore.
47.6    Subd. 4. Publisher disclosures. (a) Beginning January 1, 2008, a publisher or
47.7distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty
47.8member or other individual at a postsecondary institution responsible for selecting course
47.9material within seven days of a request, at least the following:
47.10    (1) the title, edition, author, and International Standard Book Number (ISBN) of all
47.11course material and custom course materials, if applicable;
47.12    (2) the price for the course material;
47.13    (3) whether the required course material is bundled with optional material, whether
47.14it can be unbundled, and the price for each bundled and unbundled component;
47.15    (4) whether the material is available in an alternative format and the cost for the
47.16alternatively formatted material; and
47.17    (5) summary of revisions to requested course material for the previous edition or
47.18release for materials that have been in circulation for five years or less and a detailed
47.19breakdown of revisions must be made available in writing within seven days of the request.
47.20    (b) A publisher or distributor must make all bundled course materials available to
47.21bookstores or postsecondary institutions in an unbundled form or provide written or verbal
47.22notice within seven days of a request under this subdivision if the unbundled materials are
47.23not available.
47.24    (c) A publisher or distributor must post on its Web site, include in its marketing
47.25materials, or disclose in writing when a request is made under this subdivision for the
47.26return policy for course material, including any penalties or conditions for returns.
47.27    (d) Disclosure under this section is not required for mass market and trade books that
47.28are not published, marketed, or sold primarily for use in or by postsecondary institutions.
47.29    Subd. 5. Payment for course material. Each postsecondary institution must adopt
47.30policies that allow students to add the costs of course material purchased at a bookstore
47.31to existing waivers or payment plans for tuition and fees.
47.32    Subd. 6. Notice to purchase. (a) An instructor shall make reasonable efforts to
47.33notify a bookstore of the final order for required and recommended course material
47.34including, but not limited to, alternative formats, previous editions, or custom course
47.35materials at least 30 days prior to the commencement of the term.
48.1    (b) The bookstore must notify students of the following information concerning the
48.2required and recommended course material at least 15 days prior to the commencement of
48.3the term for which the course material is required, including, but not limited to:
48.4    (1) the title, edition, author, and International Standard Book Number (ISBN) of
48.5the course material;
48.6    (2) the price for the course material;
48.7    (3) whether the required course material is bundled with optional material, whether
48.8it can be unbundled, and the price for each bundled and unbundled component; and
48.9    (4) whether the material is available in an alternative format and the cost for the
48.10alternatively formatted material.
48.11    Subd. 7. Educational strategies. (a) During the biennium ending June 30, 2009,
48.12the Minnesota Office of Higher Education shall work with postsecondary institutions
48.13to develop educational materials based upon the findings of the Minnesota Textbook
48.14Advisory Task Force recommendations and other relevant information, convene and
48.15sponsor meetings and workshops, and provide educational materials for faculty, students,
48.16administrators, institutions, bookstores, and publishers in order to educate all interested
48.17parties on strategies for reducing the costs of course materials for students attending
48.18postsecondary institutions.
48.19    (b) The Minnesota Office of Higher Education must develop and maintain a
48.20standardized request form for publisher disclosure under this section with all required
48.21information. The request form must be in an electronic format that can be downloaded
48.22from the office Web site.

48.23ARTICLE 5
48.24PRIVATE INSTITUTIONS

48.25    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:
48.26136A.61 POLICY.
48.27    The legislature has found and hereby declares that the availability of legitimate
48.28courses and programs leading to academic degrees offered by responsible private not for
48.29profit and for profit institutions of postsecondary education and the existence of legitimate
48.30private colleges and universities are in the best interests of the people of this state. The
48.31legislature has found and declares that the state can provide assistance and protection
48.32for persons choosing private institutions and programs, by establishing policies and
48.33procedures to assure the authenticity and legitimacy of private postsecondary education
48.34institutions and programs. The legislature has also found and declares that this same
48.35policy applies to any private and public postsecondary educational institution located in
49.1another state or country which offers or makes available to a Minnesota resident any
49.2course, program or educational activity which does not require the leaving of the state
49.3for its completion.

49.4    Sec. 2. [136A.615] CITATION.
49.5    Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and
49.6Out-of-State Public Postsecondary Education Act."

49.7    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:
49.8    Subd. 3. School. "School" means:
49.9    (1) any individual, partnership, company, firm, society, trust, association,
49.10corporation, or any combination thereof, which (a) (i) is, owns, or operates a private,
49.11nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, for
49.12profit postsecondary education institution; (iii) provides a postsecondary instructional
49.13program or course leading to a degree whether or not for profit; (c) (iv) is, owns, or
49.14operates a private, postsecondary education institution which uses the term "college",
49.15"academy", "institute" or "university" in its name; or (d) operates for profit and provides
49.16programs or courses which are intended to allow an individual to fulfill in part or totally
49.17the requirements necessary to maintain a license to practice an occupation. School shall
49.18also mean
49.19    (2) any public postsecondary educational institution located in another state or
49.20country which offers or makes available to a Minnesota resident any course, program or
49.21educational activity which does not require the leaving of the state for its completion; or
49.22    (3) any individual, entity, or postsecondary institution located in another state
49.23that contracts with any school located within the state of Minnesota for the purpose of
49.24providing educational programs, training programs, or awarding postsecondary credits
49.25or continuing education credits to Minnesota residents that may be applied to a degree
49.26program.

49.27    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:
49.28136A.63 REGISTRATION.
49.29    Subdivision 1. Annual registration. All schools located within Minnesota and
49.30all schools located outside Minnesota which offer degree programs or courses within
49.31Minnesota shall register annually with the office.
49.32    Subd. 2. Sale of an institution. Within 30 days of a change of ownership the school
49.33must submit a registration renewal application, all usual and ordinary information and
50.1materials for an initial registration, and applicable registration fees for a new institution.
50.2For purposes of this subdivision, "change of ownership" means a merger or consolidation
50.3with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of
50.4the assets of a school; the transfer of a controlling interest of at least 51 percent of the
50.5school's stock; or a change in the not-for-profit or for profit status of a school.

50.6    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:
50.7136A.64 INFORMATION REQUIRED FOR REGISTRATION.
50.8    Subdivision 1. Schools to provide information. As a basis for registration, schools
50.9shall provide the office with such information as the office needs to determine the nature
50.10and activities of the school, including but not limited to, requirements for admission,
50.11enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty
50.12employed. The office shall have the authority to verify the accuracy of the information
50.13submitted to it by inspection or any other means it deems necessary. the following which
50.14shall be accompanied by an affidavit attesting to its accuracy and truthfulness:
50.15    (1) articles of incorporation, constitution, bylaws, or other operating documents;
50.16    (2) a duly adopted statement of the school's mission and goals;
50.17    (3) evidence of current school or program licenses granted by departments or
50.18agencies of any state;
50.19    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate
50.20past fiscal year including any management letters provided by the independent auditor
50.21or, if the school is a public institution outside Minnesota, an income statement for the
50.22immediate past fiscal year;
50.23    (5) all current promotional and recruitment materials and advertisements; and
50.24    (6) the current school catalog and, if not contained in the catalog:
50.25    (i) the members of the board of trustees or directors, if any;
50.26    (ii) the current institutional officers;
50.27    (iii) current full-time and part-time faculty with degrees held or applicable
50.28experience;
50.29    (iv) a description of all school facilities;
50.30    (v) a description of all current course offerings;
50.31    (vi) all requirements for satisfactory completion of courses, programs, and degrees;
50.32    (vii) the school's policy about freedom or limitation of expression and inquiry;
50.33    (viii) a current schedule of fees, charges for tuition, required supplies, student
50.34activities, housing, and all other standard charges;
50.35    (ix) the school's policy about refunds and adjustments;
51.1    (x) the school's policy about granting credit for prior education, training, and
51.2experience; and
51.3    (xi) the school's policies about student admission, evaluation, suspension, and
51.4dismissal.
51.5    Subd. 2. Financial records. The office shall not disclose financial records or
51.6accreditation reports provided to it by a school pursuant to this section except for the
51.7purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its
51.8decision to approve or not to approve the granting of degrees or the use of a name by the
51.9school. Section 15.17, subdivision 4, shall not apply to such records.
51.10    Subd. 3. Additional information. If the office is unable to determine the nature
51.11and activities of a school on the basis of the information in subdivision 1, the office shall
51.12notify the school of additional information needed.
51.13    Subd. 4. Verification of information. The office may verify the accuracy of
51.14submitted information by inspection, visitation, or any other means it considers necessary.
51.15    Subd. 5. Public information. All information submitted to the office is public
51.16information except financial and accreditation records and information. The office may
51.17disclose financial records or information to defend its decision to approve or disapprove
51.18granting of degrees or the use of a name or its decisions to revoke the approval at a hearing
51.19under chapter 14 or other legal proceedings.
51.20    Subd. 6. Late registration penalty. Applications for renewal for any registration
51.21received after the deadline date specified in the renewal materials provided by the office
51.22are subject to a late fee equal to 20 percent of the annual registration renewal fee.
51.23    Subd. 7. Out-of-state expenses. A school shall reimburse the office for actual costs
51.24associated with a site evaluation visit outside Minnesota if the visit is necessary under
51.25section 136A.64, subdivision 1 or 3.

51.26    Sec. 6. [136A.645] SCHOOL CLOSURE.
51.27    (a) When a school decides to cease postsecondary education operations, or if its
51.28registration is refused, revoked, or suspended it must cooperate with the office in assisting
51.29students to find alternative means to complete their studies with a minimum of disruption,
51.30and inform the office of the following:
51.31    (1) the planned date for termination of postsecondary education operations;
51.32    (2) the planned date for the transfer of the student records;
51.33    (3) confirmation of the name and address of the organization to receive and hold
51.34the student records; and
52.1    (4) the official at the organization receiving the student records who is designated to
52.2provide official copies of records or transcripts upon request.
52.3    (b) Upon notice from a school of its intention to cease operations, or if a school's
52.4registration is revoked, refused, or suspended, the office shall notify the school of the date
52.5on which it must cease the enrollment of students and all postsecondary educational
52.6operations.

52.7    Sec. 7. [136A.646] ADDITIONAL SECURITY.
52.8    In the event any registered institution is notified by the United States Department
52.9of Education that it has fallen below minimum financial standards and that its continued
52.10participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
52.11Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
52.12Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
52.13institution shall provide a surety bond conditioned upon the faithful performance of all
52.14contracts and agreements with students in a sum equal to the "letter of credit" required by
52.15the United States Department of Education in the Letter of Credit Alternative, but in no
52.16event shall such bond be less than $10,000 and not more than $250,000.

52.17    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read:
52.18136A.65 APPROVAL OF DEGREES AND NAME.
52.19    Subdivision 1. Prohibition. No school subject to registration shall grant a degree
52.20unless such degree is and its underlying curriculum are approved by the office, nor
52.21shall any school subject to registration use the name "college," "academy," "institute" or
52.22"university" in its name without approval by the office.
52.23    Subd. 1a. Accreditation; requirement. A school must not be registered or
52.24authorized to offer any degree at any level unless the school is accredited by an agency
52.25recognized by the United States Department of Education for purposes of eligibility to
52.26participate in Title IV federal financial aid programs. Any registered school undergoing
52.27institutional accreditation shall inform the office of site visits by the accrediting agency
52.28and provide office staff the opportunity to attend the visits, including any exit interviews.
52.29The institution must provide the office with a copy of the final report upon receipt.
52.30    Subd. 2. Procedures. The office shall establish procedures for approval, including
52.31notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not
52.32granted. If a hearing is requested, no disapproval shall take effect until after such hearing.
52.33    Subd. 3. Application. A school subject to registration shall be granted approval to
52.34use the term "college," "academy," "institute" or "university" in its name whether or not it
53.1offers a program leading to a degree, if it was organized, operating and using such term in
53.2its name on or before August 1, 1975, and if it meets the other policies and standards for
53.3approval established by the office.
53.4    Subd. 4. Criteria for approval. (a) A school applying to be registered and to have
53.5its degree or degrees and name approved must substantially meet the following criteria:
53.6    (1) the school has an organizational framework with administrative and teaching
53.7personnel to provide the educational programs offered;
53.8    (2) the school has financial resources sufficient to meet the school's financial
53.9obligations, including refunding tuition and other charges consistent with its stated policy
53.10if the institution is dissolved, or if claims for refunds are made, to provide service to the
53.11students as promised, and to provide educational programs leading to degrees as offered;
53.12    (3) the school operates in conformity with generally accepted budgeting and
53.13accounting procedures, such as the standards adopted by the National Association of
53.14College and University Business Officers, located at 1 Dupont Circle, Washington, D.C.,
53.1520036;
53.16    (4) the school provides an educational program leading to the degree it offers;
53.17    (5) the school provides appropriate and accessible library, laboratory, and other
53.18physical facilities to support the educational program offered;
53.19    (6) the school has a policy on freedom or limitation of expression and inquiry for
53.20faculty and students which is published or available on request;
53.21    (7) the school uses only publications and advertisements which are truthful and do
53.22not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the
53.23school, its personnel, programs, services, or occupational opportunities for its graduates
53.24for promotion and student recruitment;
53.25    (8) the school's compensated recruiting agents who are operating in Minnesota
53.26identify themselves as agents of the school when talking to or corresponding with students
53.27and prospective students; and
53.28    (9) the school provides information to students and prospective students concerning:
53.29    (i) comprehensive and accurate policies relating to student admission, evaluation,
53.30suspension, and dismissal;
53.31    (ii) clear and accurate policies relating to granting credit for prior education, training,
53.32and experience and for courses offered by the school;
53.33    (iii) current schedules of fees, charges for tuition, required supplies, student
53.34activities, housing, and all other standard charges;
53.35    (iv) policies regarding refunds and adjustments for withdrawal or modification
53.36of enrollment status; and
54.1    (v) procedures and standards used for selection of recipients and the terms of
54.2payment and repayment for any financial aid program.
54.3    (b) An application for degree approval must also include:
54.4    (i) title of degree and formal recognition awarded;
54.5    (ii) location where such degree will be offered;
54.6    (iii) proposed implementation date of the degree;
54.7    (iv) admissions requirements for the degree;
54.8    (v) length of the degree;
54.9    (vi) projected enrollment for a period of five years;
54.10    (vii) the curriculum required for the degree, including course syllabi or outlines;
54.11    (viii) statement of academic and administrative mechanisms planned for monitoring
54.12the quality of the proposed degree;
54.13    (ix) statement of satisfaction of professional licensure criteria, if applicable;
54.14    (x) documentation of the availability of clinical, internship, externship, or practicum
54.15sites, if applicable; and
54.16    (xi) statement of how the degree fulfills the institution's mission and goals,
54.17complements existing degrees, and contributes to the school's viability.
54.18    Subd. 5. Requirements for degree approval. For each degree a school offers to a
54.19student, where the student does not leave Minnesota for the major portion of the program
54.20or course leading to the degree, the school must have:
54.21    (1) qualified teaching personnel to provide the educational programs for each degree
54.22for which approval is sought;
54.23    (2) appropriate educational programs leading to each degree for which approval
54.24is sought;
54.25    (3) appropriate and accessible library, laboratory, and other physical facilities to
54.26support the educational program for each degree for which approval is sought; and
54.27    (4) a rationale showing that degree programs are consistent with the school's mission
54.28and goals.
54.29    Subd. 6. Name. A school may use the term "academy" or "institute" in its name
54.30without meeting any additional requirements. A school may use the term "college" in its
54.31name if it offers at least one program leading to an associate degree. A school may use
54.32the term "university" in its name if it offers at least one program leading to a master's
54.33or doctorate degree.
54.34    Subd. 7. Grandfathered names. Names used before August 1, 2007, by a school,
54.35organized, operating, and using the term "academy," "institute," "college," or "university"
55.1in its name on or before August 1, 2007, may continue using such term whether or not it
55.2offers a program leading to a degree.
55.3    Subd. 8. Conditional approval. The office may grant conditional approval for a
55.4degree or use of a term in its name for a period of less than one year if doing so would be
55.5in the best interests of currently enrolled students or prospective students.
55.6    Subd. 9. Disapproval of registration appeal. If a school's degree or use of a term
55.7in its name is disapproved by the office, the school may request a hearing under chapter
55.814. The request must be in writing and made to the office within 30 days of the date
55.9the school is notified of the disapproval.
55.10    (a) The office may refuse to renew, revoke, or suspend registration, approval of
55.11a school's degree, or use of a regulated term in its name by giving written notice and
55.12reasons to the school. The school may request a hearing under chapter 14. If a hearing is
55.13requested, no revocation or suspension shall take effect until after the hearing.
55.14    (b) Reasons for revocation or suspension of registration or approval may be for one
55.15or more of the following reasons:
55.16    (1) violating the provisions of sections 136A.615 to 136A.71;
55.17    (2) providing false, misleading, or incomplete information to the office;
55.18    (3) presenting information about the school which is false, fraudulent, misleading,
55.19deceptive, or inaccurate in a material respect to prospective students; or
55.20    (4) refusing to allow reasonable inspection or to supply reasonable information after
55.21a written request by the office has been received.

55.22    Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read:
55.23136A.653 EXEMPTIONS.
55.24    Subdivision 1. Exemption. A school that is subject to licensing by the office under
55.25chapter 141, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
55.26The determination of the office as to whether a particular school is subject to regulation
55.27under chapter 141 is final for the purposes of this exemption.
55.28    Subd. 2. Educational program; nonprofit organizations. Educational programs
55.29which are sponsored by a bona fide and nonprofit trade, labor, business, professional
55.30or fraternal organization, which programs are conducted solely for that organization's
55.31membership or for the members of the particular industries or professions served by that
55.32organization, and which are not available to the public on a fee basis, are exempted from
55.33the provisions of sections 136A.61 136A.615 to 136A.71.
55.34    Subd. 3. Educational program; business firms. Educational programs which are
55.35sponsored by a business firm for the training of its employees or the employees of other
56.1business firms with which it has contracted to provide educational services at no cost to the
56.2employees are exempted from the provisions of sections 136A.61 136A.615 to 136A.71.
56.3    Subd. 4. Voluntary submission. Any school or program exempted from the
56.4provisions of sections 136A.61 136A.615 to 136A.71 by the provisions of this section
56.5may voluntarily submit to the provisions of those sections.

56.6    Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read:
56.7136A.657 EXEMPTION; RELIGIOUS SCHOOLS.
56.8    Subdivision 1. Exemption. Any school or any department or branch of a school (a)
56.9which is substantially owned, operated or supported by a bona fide church or religious
56.10organization; (b) whose programs are primarily designed for, aimed at and attended by
56.11persons who sincerely hold or seek to learn the particular religious faith or beliefs of that
56.12church or religious organization; and (c) whose programs are primarily intended to prepare
56.13its students to become ministers of, to enter into some other vocation closely related to, or
56.14to conduct their lives in consonance with, the particular faith of that church or religious
56.15organization, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
56.16    Subd. 2. Limitation. This exemption shall not extend to any school or to any
56.17department or branch of a school which through advertisements or solicitations represents
56.18to any students or prospective students that the school, its aims, goals, missions or
56.19purposes or its programs are different from those described in subdivision 1. This
56.20exemption shall not extend to any school which represents to any student or prospective
56.21student that the major purpose of its programs is to prepare the student for a vocation not
56.22closely related to that particular religious faith, or to provide the student with a general
56.23educational program recognized by other schools or the broader educational, business or
56.24social community as being substantially equivalent to the educational programs offered
56.25by schools or departments or branches of schools which are not exempt from sections
56.26136A.61 136A.615 to 136A.71, and rules adopted pursuant thereto.
56.27    Subd. 3. Scope. Nothing in sections 136A.61 136A.615 to 136A.71, or the rules
56.28adopted pursuant thereto, shall be interpreted as permitting the office to determine the
56.29truth or falsity of any particular set of religious beliefs.
56.30    Subd. 4. Statement required; religious nature. Any degree awarded upon
56.31completion of a religiously exempt program shall include descriptive language to make
56.32the religious nature of the award clear.

56.33    Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:
56.34136A.66 LIST.
57.1    The office shall maintain a list of schools registered institutions authorized to grant
57.2degrees and schools authorized to use the name "college," "academy," "institute" or
57.3"university," and shall make such list available to the public.

57.4    Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:
57.5136A.67 UNAUTHORIZED REPRESENTATIONS.
57.6    No school and none of its officials or employees shall advertise or represent in any
57.7manner that such school is approved or accredited by the office or state of Minnesota
57.8except that any A school which is duly registered with the office, or any of its officials or
57.9employees, may represent in advertising and shall disclose in catalogues, applications,
57.10and enrollment materials that the school is registered with the office. by prominently
57.11displaying the following statement: "(Name of school) is registered as a private institution
57.12with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71.
57.13Registration is not an endorsement of the institution. Credits earned at the institution
57.14may not transfer to all other institutions."

57.15    Sec. 13. [136A.675] RISK ANALYSIS.
57.16    The office shall develop a set of financial and programmatic evaluation metrics to
57.17aid in the detection of the failure or potential failure of a school to meet the standards
57.18established under sections 136A.61 to 136A.71. These metrics shall include indicators
57.19of financial stability, changes in the senior management or the financial aid and senior
57.20administrative staff of an institution, changes in enrollment, changes in program offerings,
57.21and changes in faculty staffing patterns. The development of financial standards shall use
57.22industry standards as benchmarks. The development of the nonfinancial standards shall
57.23include a measure of trends and dramatic changes in trends or practice. The agency must
57.24specify the metrics and standards for each area and provide a copy to each registered
57.25institution and post them on the agency Web site. The agency shall use regularly reported
57.26data submitted to the federal government or other regulatory or accreditation agencies
57.27wherever possible. The agency may require more frequent data reporting by an institution
57.28to ascertain whether the standards are being met.

57.29    Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read:
57.30136A.68 RECORDS.
57.31    After August 1, 1975, all schools located in this state must maintain permanent
57.32records of all students enrolled therein at any time. The office may require schools to
57.33provide a plan acceptable to the office for preserving all such records for at least ten years.
58.1The office may require that such plan include the filing of a continuous surety bond or a
58.2deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving
58.3records after such school ceases to exist. A registered school shall maintain a permanent
58.4record for each student for 50 years from the last date of the student's attendance. A
58.5registered school offering distance instruction to a student located in Minnesota shall
58.6maintain a permanent record for each Minnesota student for 50 years from the last date of
58.7the student's attendance. Records include a student's academic transcript, documents, and
58.8files containing student data about academic credits earned, courses completed, grades
58.9awarded, degrees awarded, and periods of attendance. To preserve permanent records, a
58.10school shall submit a plan that meets the following requirements:
58.11    (1) at least one copy of the records must be held in a secure, fireproof depository
58.12or duplicate records must be maintained off site in a secure location and in a manner
58.13approved by the office;
58.14    (2) an appropriate official must be designated to provide a student with copies of
58.15records or a transcript upon request;
58.16    (3) an alternative method approved by the office of complying with clauses (1) and
58.17(2) must be established if the school ceases to exist; and
58.18    (4) if the school has no binding agreement approved by the office for preserving
58.19student records, a continuous surety bond must be filed with the office in an amount not to
58.20exceed $20,000. The bond shall run to the state of Minnesota.

58.21    Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read:
58.22136A.69 FEES.
58.23    Subdivision 1. Registration fees. The office shall collect reasonable registration
58.24fees that are sufficient to recover, but do not exceed, its costs of administering the
58.25registration program. The office shall charge $1,100 for initial registration fees and $950
58.26for annual renewal fees.
58.27    Subd. 2. Degree level addition fee. The office processing fee for adding a degree
58.28level to an existing program is $2,000 per program.
58.29    Subd. 3. Program addition fee. The office processing fee for adding a program
58.30that represents a significant departure in the objectives, content, or method of delivery of
58.31programs that are currently offered by the school is $500 per program.
58.32    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
58.33or outside consultant is necessary to review or evaluate any new or revised program, the
58.34office shall be reimbursed for the expenses incurred related to the review as follows:
59.1    (1) $300 for the team base fee or for a paper review conducted by a consultant if the
59.2office determines that a fact-finding visit is not required;
59.3    (2) $300 for each day or part thereof on site per team member; and
59.4    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
59.5by team members.
59.6    Subd. 5. Modification fee. The fee for modification of any existing program is
59.7$100 and is due if there is:
59.8    (1) an increase or decrease of 25 percent or more from the original date of program
59.9approval, in clock hours, credit hours, or calendar length of an existing program;
59.10    (2) a change in academic measurement from clock hours to credit hours or vice
59.11versa; or
59.12    (3) an addition or alteration of courses that represent a 25 percent change or more in
59.13the objectives, content, or methods of delivery.

59.14    Sec. 16. [136A.705] PENALTY.
59.15    The director may assess fines for violations of a provision of sections 136A.615 to
59.16136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71
59.17shall be a separate violation and fines shall not exceed $500 per day per violation.
59.18Amounts received under this section must be deposited in the special revenue fund and are
59.19appropriated for the purposes in sections 136A.615 to 136A.71.

59.20    Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read:
59.21136A.71 INJUNCTION.
59.22    Upon application of the attorney general the district courts shall have jurisdiction to
59.23enjoin any violations of sections 136A.61 136A.615 to 136A.71.

59.24    Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:
59.25    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or
59.26"office" means the Minnesota Office of Higher Education.

59.27    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:
59.28    Subd. 5. School. "School" means any person, within or outside the state, who
59.29maintains, advertises, administers, solicits for, or conducts any program for profit at
59.30any less than an associate degree level other than baccalaureate or graduate programs,
59.31and is not specifically exempted by sections 141.21 to and is not registered as a private
60.1institution under sections 136A.615 to 136A.71 and is not specifically exempted by
60.2section 141.35 or 141.37.

60.3    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:
60.4    Subdivision 1. Required. A school must not maintain, advertise, solicit for,
60.5administer, or conduct any program in Minnesota without first obtaining a license from
60.6the office.

60.7    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:
60.8    Subd. 5. Bond. (a) No license shall be issued to any school which maintains,
60.9conducts, solicits for, or advertises within the state of Minnesota any program, unless the
60.10applicant files with the office a continuous corporate surety bond written by a company
60.11authorized to do business in Minnesota conditioned upon the faithful performance of all
60.12contracts and agreements with students made by the applicant.
60.13    (b) The amount of the surety bond shall be ten percent of the preceding year's gross
60.14income from student tuition, fees, and other required institutional charges, but in no event
60.15less than $10,000 nor greater than $250,000, except that a school may deposit a greater
60.16amount at its own discretion. A school in each annual application for licensure must
60.17compute the amount of the surety bond and verify that the amount of the surety bond
60.18complies with this subdivision, unless the school maintains a surety bond equal to at least
60.19$250,000. A school that operates at two or more locations may combine gross income
60.20from student tuition, fees, and other required institutional charges for all locations for the
60.21purpose of determining the annual surety bond requirement. The gross tuition and fees
60.22used to determine the amount of the surety bond required for a school having a license for
60.23the sole purpose of recruiting students in Minnesota shall be only that paid to the school
60.24by the students recruited from Minnesota.
60.25    (c) The bond shall run to the state of Minnesota and to any person who may have a
60.26cause of action against the applicant arising at any time after the bond is filed and before it
60.27is canceled for breach of any contract or agreement made by the applicant with any student.
60.28The aggregate liability of the surety for all breaches of the conditions of the bond shall not
60.29exceed the principal sum deposited by the school under paragraph (b). The surety of any
60.30bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved
60.31of liability for any breach of condition occurring after the effective date of cancellation.
60.32    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a
60.33sum equal to the amount of the required surety bond in cash, or securities as may be
61.1legally purchased by savings banks or for trust funds in an aggregate market value equal
61.2to the amount of the required surety bond.
61.3    (e) Failure of a school to post and maintain the required surety bond or deposit under
61.4paragraph (d) may shall result in denial, suspension, or revocation of the school's license.

61.5    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:
61.6    Subd. 7. Minimum standards. A license shall be issued if the office first
61.7determines:
61.8    (1) that the applicant has a sound financial condition with sufficient resources
61.9available to:
61.10    (i) meet the school's financial obligations;
61.11    (ii) refund all tuition and other charges, within a reasonable period of time, in the
61.12event of dissolution of the school or in the event of any justifiable claims for refund against
61.13the school by the student body;
61.14    (iii) provide adequate service to its students and prospective students; and
61.15    (iv) maintain and support the school;
61.16    (2) that the applicant has satisfactory facilities with sufficient tools and equipment
61.17and the necessary number of work stations to prepare adequately the students currently
61.18enrolled, and those proposed to be enrolled;
61.19    (3) that the applicant employs a sufficient number of qualified teaching personnel to
61.20provide the educational programs contemplated;
61.21    (4) that the school has an organizational framework with administrative and
61.22instructional personnel to provide the programs and services it intends to offer;
61.23    (5) that the premises and conditions under which the students work and study are
61.24sanitary, healthful, and safe, according to modern standards;
61.25    (6) that the quality and content of each occupational course or program of study
61.26provides education and adequate preparation to enrolled students for entry level positions
61.27in the occupation for which prepared;
61.28    (7) that the living quarters which are owned, maintained, recommended, or approved
61.29by the applicant for students are sanitary and safe;
61.30    (8) that the contract or enrollment agreement used by the school complies with
61.31the provisions in section 141.265;
61.32    (9) that contracts and agreements do not contain a wage assignment provision or a
61.33confession of judgment clause; and
62.1    (10) that there has been no adjudication of fraud or misrepresentation in any
62.2criminal, civil, or administrative proceeding in any jurisdiction against the school or its
62.3owner, officers, agents, or sponsoring organization.

62.4    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:
62.5    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to
62.6a school, the school shall furnish to the office a catalog, brochure, or electronic display
62.7including:
62.8    (1) identifying data, such as volume number and date of publication;
62.9    (2) name and address of the school and its governing body and officials;
62.10    (3) a calendar of the school showing legal holidays, beginning and ending dates of
62.11each course quarter, term, or semester, and other important dates;
62.12    (4) the school policy and regulations on enrollment including dates and specific
62.13entrance requirements for each program;
62.14    (5) the school policy and regulations about leave, absences, class cuts, make-up
62.15work, tardiness, and interruptions for unsatisfactory attendance;
62.16    (6) the school policy and regulations about standards of progress for the student
62.17including the grading system of the school, the minimum grades considered satisfactory,
62.18conditions for interruption for unsatisfactory grades or progress, a description of any
62.19probationary period allowed by the school, and conditions of reentrance for those
62.20dismissed for unsatisfactory progress;
62.21    (7) the school policy and regulations about student conduct and conditions for
62.22dismissal for unsatisfactory conduct;
62.23    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
62.24activities, laboratory fees, service charges, rentals, deposits, and all other charges;
62.25    (9) the school policy and regulations, including an explanation of section 141.271,
62.26about refunding tuition, fees, and other charges if the student does not enter the program,
62.27withdraws from the program, or the program is discontinued;
62.28    (10) a description of the available facilities and equipment;
62.29    (11) a course outline syllabus for each course offered showing course objectives,
62.30subjects or units in the course, type of work or skill to be learned, and approximate time,
62.31hours, or credits to be spent on each subject or unit;
62.32    (12) the school policy and regulations about granting credit for previous education
62.33and preparation;
62.34    (13) a notice to students relating to the transferability of any credits earned at the
62.35school to other institutions;
63.1    (14) a procedure for investigating and resolving student complaints; and
63.2    (14) (15) the name and address of the Minnesota Office of Higher Education.
63.3    A school that is exclusively a distance education school is exempt from clauses
63.4(3) and (5).

63.5    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:
63.6    Subd. 10. Placement records. (a) Before a license is issued reissued to a school
63.7that offers, advertises or implies a placement service, the school shall file with the office
63.8for the past year and thereafter at reasonable intervals determined by the office, a certified
63.9copy of the school's placement record, containing a list of graduates, a description of their
63.10jobs, names of their employers, and other information as the office may prescribe.
63.11    (b) Each school that offers a placement service shall furnish to each prospective
63.12student, upon request, prior to enrollment, written information concerning the percentage
63.13of the previous year's graduates who were placed in the occupation for which prepared or
63.14in related employment.

63.15    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:
63.16    Subd. 12. Permanent records. A school licensed under this chapter and located
63.17in Minnesota shall maintain a permanent record for each student for 50 years from the
63.18last date of the student's attendance. A school licensed under this chapter and offering
63.19distance instruction to a student located in Minnesota shall maintain a permanent record
63.20for each Minnesota student for 50 years from the last date of the student's attendance.
63.21Records include school transcripts, documents, and files containing student data about
63.22academic credits earned, courses completed, grades awarded, degrees awarded, and
63.23periods of attendance. To preserve permanent records, a school shall submit a plan that
63.24meets the following requirements:
63.25    (1) at least one copy of the records must be held in a secure, fireproof depository;
63.26    (2) an appropriate official must be designated to provide a student with copies of
63.27records or a transcript upon request;
63.28    (3) an alternative method, approved by the office, of complying with clauses (1) and
63.29(2) must be established if the school ceases to exist; and
63.30    (4) a continuous surety bond must be filed with the office in an amount not to exceed
63.31$20,000 if the school has no binding agreement approved by the office, for preserving
63.32student records or a trust must be arranged if the school ceases to exist. The bond shall run
63.33to the state of Minnesota.

64.1    Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:
64.2    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a
64.3renewal licensure application is:
64.4    (1) for a category A school, as determined by the office, the fee is $865 if the school
64.5offers one program or $1,150 if the school offers two or more programs; and
64.6    (2) for a category B or C school, as determined by the office, the fee is $430 if the
64.7school offers one program or $575 if the school offers two or more programs.
64.8    (b) If a license renewal application is not received by the office by the close of
64.9business at least 60 days before the expiration of the current license, a late fee of $100
64.10per business day, not to exceed $3,000, shall be assessed.

64.11    Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:
64.12    Subd. 2. Contract information. A contract or enrollment agreement used by a
64.13school must include at least the following:
64.14    (1) the name and address of the school, clearly stated;
64.15    (2) a clear and conspicuous disclosure that the agreement is a legally binding
64.16instrument upon written acceptance of the student by the school unless canceled under
64.17section 141.271;
64.18    (3) the school's cancellation and refund policy that shall be clearly and conspicuously
64.19entitled "Buyer's Right to Cancel";
64.20    (4) a clear statement of total cost of the program including tuition and all other
64.21charges;
64.22    (5) the name and description of the program, including the number of hours or
64.23credits of classroom instruction, or distance instruction, that shall be included; and
64.24    (6) a clear and conspicuous explanation of the form and means of notice the student
64.25should use in the event the student elects to cancel the contract or sale, the effective
64.26date of cancellation, and the name and address of the seller to which the notice should
64.27be sent or delivered.
64.28The contract or enrollment agreement must not include a wage assignment provision or a
64.29confession of judgment clause.

64.30    Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:
64.31    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place
64.32on the date the letter of cancellation is postmarked or, in the cases where the notice is hand
64.33carried, it shall occur on the date the notice is delivered to the school. If a student has not
64.34attended classes class for a period of 21 consecutive days without contacting the school to
65.1indicate an intent to continue in school or otherwise making arrangements concerning the
65.2absence, the student is considered to have withdrawn from school for all purposes as of
65.3the student's last documented date of attendance.

65.4    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:
65.5    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any
65.6promissory instrument received as payment of tuition or other charge prior to completion
65.7of 50 percent of the program., except that prior to that time, instruments may be transferred
65.8by assignment to purchasers who shall be subject to all defenses available against the
65.9school named as payee.

65.10    Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:
65.11    Subdivision 1. Not to advertise state approval Disclosure required. Schools,
65.12agents of schools, and solicitors may not advertise or represent in writing or orally that
65.13such school is approved or accredited by the state of Minnesota, except that any A
65.14school, agent, or solicitor may advertise represent in advertisements and shall disclose
65.15in catalogues, applications, and enrollment materials that the school and solicitor have
65.16been is duly licensed by the state using by prominently displaying the following language
65.17statement:
65.18"(Name of school) is licensed as a private career school with the Minnesota Office of
65.19Higher Education. Licensure is not an endorsement of the institution. Credits earned at the
65.20institution may not transfer to all other institutions. The educational programs may not
65.21meet the needs of every student or employer."

65.22    Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read:
65.23141.32 PENALTY.
65.24    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure
65.25to comply with this chapter shall be a separate violation. The office shall adopt rules
65.26establishing a list of civil penalties and the fine associated with each violation. Fines for
65.27violations shall not exceed $500 per day per violation. The director may assess fines for
65.28violations of a provision of this chapter. Each day's failure to comply with a provision
65.29of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed
65.30$500 per day per violation. Amounts received under this section must be deposited in the
65.31special revenue fund and are appropriated for the purposes of this chapter.

66.1    Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read:
66.2141.35 EXEMPTIONS.
66.3    Sections 141.21 to 141.35 141.32 shall not apply to the following:
66.4    (1) public postsecondary institutions;
66.5    (2) private postsecondary institutions registered under sections 136A.61 136A.615
66.6to 136A.71 that are nonprofit, or that are for profit and registered under sections 136A.61
66.7to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate
66.8or postbaccalaureate programs;
66.9    (3) schools of nursing accredited by the state Board of Nursing or an equivalent
66.10public board of another state or foreign country;
66.11    (4) private schools complying with the requirements of section 120A.22, subdivision
66.124
;
66.13    (5) courses taught to students in a valid apprenticeship program taught by or
66.14required by a trade union;
66.15    (6) schools exclusively engaged in training physically or mentally disabled persons
66.16for the state of Minnesota;
66.17    (7) schools licensed by boards authorized under Minnesota law to issue licenses;
66.18    (8) schools and educational programs, or training programs, contracted for by
66.19persons, firms, corporations, government agencies, or associations, for the training of their
66.20own employees, for which no fee is charged the employee;
66.21    (9) schools engaged exclusively in the teaching of purely avocational, recreational,
66.22or remedial subjects as determined by the office;
66.23    (10) driver training schools and instructors as defined in section 171.33, subdivisions
66.241 and 2
;
66.25    (11) classes, courses, or programs conducted by a bona fide trade, professional, or
66.26fraternal organization, solely for that organization's membership;
66.27    (12) (11) programs in the fine arts provided by organizations exempt from taxation
66.28under section 290.05 and registered with the attorney general under chapter 309. For
66.29the purposes of this clause, "fine arts" means activities resulting in artistic creation or
66.30artistic performance of works of the imagination which are engaged in for the primary
66.31purpose of creative expression rather than commercial sale or employment. In making
66.32this determination the office may seek the advice and recommendation of the Minnesota
66.33Board of the Arts;
66.34    (13) (12) classes, courses, or programs intended to fulfill the continuing education
66.35requirements for licensure or certification in a profession, that have been approved by
66.36a legislatively or judicially established board or agency responsible for regulating the
67.1practice of the profession, and that are offered exclusively to an individual practicing
67.2the profession;
67.3    (14) (13) classes, courses, or programs intended to prepare students to sit for
67.4undergraduate, graduate, postgraduate, or occupational licensing and occupational
67.5entrance examinations;
67.6    (15) (14) classes, courses, or programs providing 16 or fewer clock hours of
67.7instruction that are not part of the curriculum for an occupation or entry level employment;
67.8    (16) (15) classes, courses, or programs providing instruction in personal
67.9development, modeling, or acting;
67.10    (17) (16) training or instructional programs, in which one instructor teaches an
67.11individual student, that are not part of the curriculum for an occupation or are not intended
67.12to prepare a person for entry level employment; and
67.13    (18) (17) schools with no physical presence in Minnesota, as determined by the
67.14office, engaged exclusively in offering distance instruction that are located in and
67.15regulated by other states or jurisdictions.

67.16    Sec. 33. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
67.17    Subdivision 1. Exemption. Any school or any department or branch of a school:
67.18    (1) which is substantially owned, operated, or supported by a bona fide church
67.19or religious organization;
67.20    (2) whose programs are primarily designed for, aimed at, and attended by persons
67.21who sincerely hold or seek to learn the particular religious faith or beliefs of that church or
67.22religious organization; and
67.23    (3) whose programs are primarily intended to prepare its students to become
67.24ministers of, to enter into some other vocation closely related to, or to conduct their lives
67.25in consonance with the particular faith of that church or religious organization,
67.26is exempt from the provisions of sections 141.21 to 141.32.
67.27    Subd. 2. Limitations. (a) An exemption shall not extend to any school, department
67.28or branch of a school, or program of a school which through advertisements or solicitations
67.29represents to any students or prospective students that the school, its aims, goals, missions,
67.30purposes, or programs are different from those described in subdivision 1.
67.31    (b) An exemption shall not extend to any school which represents to any student or
67.32prospective student that the major purpose of its programs is to:
67.33    (1) prepare the student for a vocation not closely related to that particular religious
67.34faith; or
68.1    (2) provide the student with a general educational program recognized by other
68.2schools or the broader educational, business, or social community as being substantially
68.3equivalent to the educational programs offered by schools or departments or branches of
68.4schools which are not religious in nature and are not exempt from chapter 141 and from
68.5rules adopted pursuant under this chapter.
68.6    Subd. 3. Scope. Nothing in this chapter or the rules adopted under it shall be
68.7interpreted as permitting the office to determine the truth or falsity of any particular set
68.8of religious beliefs.
68.9    Subd. 4. Descriptive language required. Any certificate, diploma, degree, or other
68.10formal recognition awarded upon completion of any religiously exempt program shall
68.11include such descriptive language as to make the religious nature of the award clear.

68.12    Sec. 34. EFFECTIVE DATE; TRANSITION PROCESS.
68.13    Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71,
68.14shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes,
68.15chapter 141, that qualify for private institution registration after July 1, 2007, shall apply
68.16for and complete the process for registration prior to the expiration of their current private
68.17career school license. Schools currently registered as private institutions pursuant to
68.18Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private
68.19career school license after August 1, 2007, shall apply for and complete the process for
68.20licensure prior to the expiration of the current registration, but in any event no later than
68.21December 31, 2007. The office is authorized to extend existing license or registration for a
68.22reasonable period of time to allow for the completion of the new processes when necessary.

68.23ARTICLE 6
68.24JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

68.25
Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
68.26    The amounts shown in this section summarize direct appropriations, by fund, made
68.27in this article.
68.28
2008
2009
Total
68.29
General
$
94,435,000
$
60,084,000
$
154,519,000
68.30
Workforce Development
14,935,000
14,951,000
29,886,000
68.31
Remediation
700,000
700,000
1,400,000
68.32
68.33
State Government Special
Revenue
1,877,000
1,925,000
3,802,000
68.34
Workers' Compensation
23,379,000
23,763,000
47,142,000
68.35
Total
$
135,326,000
$
101,423,000
$
236,749,000

69.1
Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.
69.2    The sums shown in the columns marked "Appropriations" are appropriated to the
69.3agencies and for the purposes specified in this article. The appropriations are from the
69.4general fund, or another named fund, and are available for the fiscal years indicated
69.5for each purpose. The figures "2008" and "2009" used in this article mean that the
69.6appropriations listed under them are available for the fiscal year ending June 30, 2008, or
69.7June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
69.8year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
69.9year ending June 30, 2007, are effective the day following final enactment.
69.10
APPROPRIATIONS
69.11
Available for the Year
69.12
Ending June 30
69.13
2008
2009

69.14
69.15
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
69.16
Subdivision 1.Total Appropriation
$
100,762,000
$
66,014,000
69.17
Appropriations by Fund
69.18
2008
2009
69.19
General
85,892,000
51,144,000
69.20
Remediation
700,000
700,000
69.21
69.22
Workforce
Development
14,170,000
14,170,000
69.23The amounts that may be spent for each
69.24purpose are specified in the following
69.25subdivisions.
69.26
69.27
Subd. 2.Business and Community
Development
48,868,000
14,372,000
69.28
Appropriations by Fund
69.29
General
48,168,000
13,672,000
69.30
Remediation
700,000
700,000
69.31(a)(1) $1,100,000 is for a grant under
69.32Minnesota Statutes, section 116J.421,
69.33to the Rural Policy and Development
69.34Center at St. Peter, Minnesota. The grant
69.35shall be used for research and policy
69.36analysis on emerging economic and social
70.1issues in rural Minnesota, to serve as a
70.2policy resource center for rural Minnesota
70.3communities, to encourage collaboration
70.4across higher education institutions, to
70.5provide interdisciplinary team approaches
70.6to research and problem-solving in rural
70.7communities, and to administer overall
70.8operations of the center.
70.9(2) The grant shall be provided upon the
70.10condition that each state-appropriated
70.11dollar be matched with a nonstate dollar.
70.12Acceptable matching funds are nonstate
70.13contributions that the center has received and
70.14have not been used to match previous state
70.15grants. Any funds not spent the first year are
70.16available the second year.
70.17(b) $200,000 each year is for a grant to
70.18WomenVenture for women's business
70.19development programs.
70.20(c) $500,000 the first year is for a grant to
70.21University Enterprise Laboratories (UEL)
70.22for its direct and indirect expenses to support
70.23efforts to encourage the growth of early-stage
70.24and emerging bioscience companies. UEL
70.25must provide a report by June 30 each year
70.26to the commissioner on the expenditures
70.27until the appropriation is expended. This is a
70.28onetime appropriation and is available until
70.29expended.
70.30(d) $1,990,000 the first year is for grants
70.31under Minnesota Statutes, section 116J.571,
70.32for the redevelopment grant program. This is
70.33a onetime appropriation.
70.34(e) $100,000 each year is to the Public
70.35Facilities Authority for the small community
71.1wastewater treatment program under
71.2Minnesota Statutes, chapter 446A.
71.3(f) $510,000 the first year is for the urban
71.4initiative program under Minnesota Statutes,
71.5chapter 116M, of which, $255,000 is for
71.6a grant to the Metropolitan Economic
71.7Development Association for continuing
71.8minority business development programs
71.9in the metropolitan area. This is a onetime
71.10appropriation.
71.11(g) $85,000 each year is for a grant to the
71.12Minnesota Inventors Congress, of which
71.13$10,000 must be used for youth inventors.
71.14(h) $151,000 the first year is for a grant to the
71.15city of Faribault to design, construct, furnish,
71.16and equip renovations to accommodate
71.17handicapped accessibility at the Paradise
71.18Center for the Arts.
71.19(i) $3,000,000 the first year is for loans
71.20authorized under Minnesota Statutes, section
71.21116J.417. This appropriation is available
71.22until expended.
71.23(j) $1,000,000 each year is to Minnesota
71.24Technology, Inc. for the small business
71.25growth acceleration program established
71.26under Minnesota Statutes, section 116O.115.
71.27This is a onetime appropriation.
71.28(k) $350,000 the first year is for a grant to
71.29the city of Northome for the construction
71.30of a new municipal building to replace the
71.31structures damaged by fire on July 22, 2006.
71.32This appropriation is available when the
71.33commissioner determines that a sufficient
71.34match is available from nonstate sources to
71.35complete the project.
72.1(l) $325,000 each year is for a technology
72.2and commercialization unit established
72.3under article 7, section 32. This is a onetime
72.4appropriation.
72.5(m) $500,000 in the first year is for a
72.6grant to the city of Worthington for an
72.7agricultural-based bioscience training and
72.8testing center. Funds appropriated under this
72.9section must be used to provide a training
72.10and testing facility for incubator firms
72.11developing new agricultural processes and
72.12products. This is a onetime appropriation
72.13and is available until expended.
72.14(n) $2,200,000 in the first year is for a grant
72.15to BioBusiness Alliance of Minnesota for
72.16bioscience business development programs
72.17to promote and position the state as a global
72.18leader in bioscience business activities.
72.19These funds may be used for:
72.20(1) completion and periodic updating of
72.21a statewide bioscience business industry
72.22assessment of business technology
72.23enterprises and Minnesota's competitive
72.24position employing annual updates to federal
72.25industry classification data;
72.26(2) long-term strategic planning that includes
72.27projections of market changes resulting
72.28from developments in biotechnology and the
72.29development of 20-year goals, strategies, and
72.30identified objectives for renewable energy,
72.31medical devices, biopharma, and biologics
72.32business development in Minnesota;
72.33(3) the design and construction of a
72.34Minnesota focused bioscience business
72.35model to test competing strategies and
73.1scenarios, evaluate options, and forecast
73.2outcomes; and
73.3(4) creation of a bioscience business
73.4resources network that includes development
73.5of a statewide bioscience business economic
73.6development framework to encourage
73.7bioscience business development and
73.8encourage spin-off activities, attract
73.9bioscience business location or expansion in
73.10Minnesota, and establish a local capability to
73.11support strategic system level planning for
73.12industry, government, and academia.
73.13This appropriation is available until June 30,
73.142009.
73.15(o) $325,000 is for a grant to the Walker
73.16Area Community Center, Inc., to construct,
73.17furnish, and equip the Walker Area
73.18Community Center. This appropriation is
73.19not available until the commissioner has
73.20determined that an amount sufficient to
73.21complete the project has been committed
73.22from nonstate sources.
73.23(p) $120,000 the first year is for a grant
73.24to the Pine Island Economic Development
73.25Authority for predesign to upgrade and
73.26extend utilities to serve Elk Run Bioscience
73.27Research Park and The Falls - Healthy
73.28Living By Nature, an integrated medicine
73.29facility. This is a onetime appropriation and
73.30is available until expended.
73.31(q) $300,000 the first year is for a grant
73.32to Thomson Township for infrastructure
73.33improvements for the industrial park. This is
73.34a onetime appropriation.
74.1(r) $75,000 the first year for a grant to
74.2Le Sueur County for the cost of cleaning
74.3debris from lakes in Le Sueur County,
74.4caused by the August 24, 2006, tornado in
74.5southern Le Sueur County. This is a onetime
74.6appropriation.
74.7(s) $3,000,000 the second year is for
74.8bioscience business development and
74.9commercialization grants. The commissioner
74.10shall designate an evaluation team to accept
74.11grant applications, review and evaluate
74.12grant proposals, and select up to five grant
74.13proposals to receive funding each year.
74.14The evaluation team shall be comprised
74.15of not more than 12 members including:
74.16the commissioner or the commissioner's
74.17designee; representatives of bioscience
74.18businesses; public and private institutions
74.19of higher education; private investment
74.20companies; a nonprofit entity that qualifies as
74.21a 501(c)6 under the Internal Revenue Code
74.22and is a trade association representing the
74.23life sciences industry; and a bio business
74.24alliance that qualifies as a 501(c)3 under the
74.25Internal Revenue Code. The criteria used
74.26by the evaluation team in evaluating grant
74.27proposals must include, but is not limited
74.28to: the potential to create and sustain jobs
74.29within the state of Minnesota; the potential
74.30for long-term business activity, growth,
74.31and expansion in Minnesota; the level of
74.32technological maturity; the potential to attract
74.33private investment; and the availability and
74.34readiness of markets. The commissioner
74.35must report to the standing committees of
74.36the house of representatives and the senate
75.1having jurisdiction over bioscience and
75.2technology issues by February 1 each year
75.3on the number, type, and amounts of grants
75.4awarded and the activities of the grant
75.5recipients. This is a onetime appropriation
75.6and is available until expended.
75.7(t) $1,500,000 the first year is for the urban
75.8challenge grant program under Minnesota
75.9Statutes, section 116M.18, of which
75.10$1,000,000 is for a grant to the Neighborhood
75.11Development Center for assistance necessary
75.12to retain minority business enterprises
75.13at the Global Market. This is a onetime
75.14appropriation.
75.15(u) $375,000 each year is to develop and
75.16operate a bioscience business marketing
75.17program to market Minneota bioscience
75.18businesses and business opportunities
75.19to other states and other countries. The
75.20bioscience business marketing program must
75.21emphasize bioscience business location and
75.22expansion opportunities in communities
75.23outside of the seven-county metropolitan
75.24area as defined in Minnesota Statutes,
75.25section 473.121, subdivision 2, that have
75.26established collaborative plans among two
75.27or more municipal units for bioscience
75.28business activities, and that are within 15
75.29miles of a four-year, baccalaureate degree
75.30granting institution or a two-year technical
75.31or community college that offers bioscience
75.32curricula. The commissioner must report
75.33to the committees of the senate and house
75.34of representatives having jurisdiction
75.35over bioscience and technology issues by
75.36February 1 of each year on the expenditures
76.1of these funds and the promotional activities
76.2undertaken to market the Minnesota
76.3bioscience industry to persons outside of the
76.4state. This is a onetime appropriation and is
76.5available until expended.
76.6(v) $225,000 each year is for the purposes
76.7of the nanotechnology development fund
76.8(NDF) established in section 12, for grants
76.9to promote increased use of advanced
76.10instrumentation for nanomaterials analysis,
76.11to be awarded on a one-to-one matching basis
76.12to qualifying Minnesota small businesses.
76.13This is a onetime appropriation.
76.14(w) $50,000 the first year is for a contract
76.15with a public higher education institution
76.16in Minnesota jointly entered into with the
76.17Center for Rural Development to study the
76.18needs of the renewable energy economy for
76.19trained employees and the training required
76.20for those employees. The study must include
76.21extensive consultation and involvement of
76.22representatives of the renewable energy
76.23industry, environmental interests, labor, the
76.24University of Minnesota, and the Minnesota
76.25State Colleges and Universities. The
76.26commissioner shall report the results of the
76.27study to the chairs of the finance divisions
76.28of the legislature with jurisdiction over
76.29economic development, energy, and higher
76.30education by November 1, 2007. This is a
76.31onetime appropriation.
76.32(x) $25,000,000 is for the Minnesota
76.33minerals 21st century fund created in
76.34Minnesota Statutes, section 116J.423,
76.35to restore the money unallotted by the
77.1commissioner of finance in 2003 pursuant
77.2to Minnesota Statutes, section 16A.152.
77.3This appropriation may be used as provided
77.4in Minnesota Statutes, section 116J.423,
77.5subdivision 2. This appropriation is available
77.6until expended.
77.7(y) $900,000 each year is for a grant to the
77.8city of St. Paul to be used to pay debt service
77.9on bond obligations issued by the city of St.
77.10Paul in 1996 for the convention center.
77.11(z) $189,000 each year is appropriated from
77.12the general fund to the commissioner of
77.13employment and economic development for
77.14grants of $63,000 to eligible organizations
77.15each year and for the purposes of this
77.16paragraph. Each state grant dollar must be
77.17matched with $1 of nonstate funds. Any
77.18balance in the first year does not cancel but is
77.19available in the second year.
77.20The commissioner of employment and
77.21economic development must make grants to
77.22organizations to assist in the development
77.23of entrepreneurs and small businesses.
77.24Three grants must be awarded to continue
77.25or to develop a program. One grant must
77.26be awarded to the Riverbend Center for
77.27Entrepreneurial Facilitation in Blue Earth
77.28County, and two to other organizations
77.29serving Faribault and Martin Counties. Grant
77.30recipients must report to the commissioner
77.31by February 1 of each year that the
77.32organization receives a grant with the
77.33number of customers served; the number of
77.34businesses started, stabilized, or expanded;
77.35the number of jobs created and retained; and
78.1business success rates. The commissioner
78.2must report to the house of representatives
78.3and senate committees with jurisdiction
78.4over economic development finance on the
78.5effectiveness of these programs for assisting
78.6in the development of entrepreneurs and
78.7small businesses.
78.8(aa) $10,000 for the biennium is to the
78.9commissioner of employment and economic
78.10development for the Minnesota investment
78.11fund. This grant is not subject to grant
78.12limitations under section 116J.8731,
78.13subdivision 5.
78.14
Subd. 3.Workforce Development
48,896,000
48,622,000
78.15
Appropriations by Fund
78.16
General
34,726,000
34,452,000
78.17
78.18
Workforce
Development
14,170,000
14,170,000
78.19(a) $6,785,000 each year is for the Minnesota
78.20job skills partnership program under
78.21Minnesota Statutes, sections 116L.01 to
78.22116L.17. If the appropriation for either
78.23year is insufficient, the appropriation for the
78.24other year is available. This appropriation is
78.25available until spent.
78.26(b) $305,000 each year is for a grant under
78.27Minnesota Statutes, section 116J.8747, to
78.28Twin Cities RISE! to provide training to
78.29hard-to-train individuals.
78.30(c) $1,375,000 each year is from
78.31the workforce development fund for
78.32Opportunities Industrialization Center
78.33programs.
78.34(d) $5,864,000 each year is from the general
78.35fund and $6,920,000 each year is from the
79.1workforce development fund for extended
79.2employment services for persons with
79.3severe disabilities or related conditions under
79.4Minnesota Statutes, section 268A.15. Of this,
79.5$125,000 each year and in the base for fiscal
79.6years 2010 and 2011 is to supplement funds
79.7paid for wage incentive for the community
79.8support fund established in Minnesota Rules,
79.9part 3300.2045.
79.10(e) $1,900,000 each year is for grants for
79.11programs that provide employment support
79.12services to persons with mental illness under
79.13Minnesota Statutes, sections 268A.13 and
79.14268A.14. Up to $77,000 each year may be
79.15used for administrative and salary expenses.
79.16(f) $2,190,000 each year is for grants under
79.17Minnesota Statutes, section 268A.11, for the
79.18eight centers for independent living. Money
79.19not expended the first year is available the
79.20second year.
79.21(g) $5,940,000 each year is for State Services
79.22for the Blind activities.
79.23(h) $150,000 each year is from the general
79.24fund and $175,000 each year is from the
79.25workforce development fund for grants under
79.26Minnesota Statutes, section 268A.03, to Rise,
79.27Inc. for the Minnesota Employment Center
79.28for People Who are Deaf or Hard-of-Hearing.
79.29Money not expended the first year is
79.30available the second year.
79.31(i) $9,021,000 each year from the general
79.32fund is for the vocational rehabilitation
79.33program and $325,000 each year from
79.34the workforce development fund is for
79.35interpreters for a regional transition program
80.1specializing in culturally appropriate
80.2transition services leading to employment
80.3for deaf, hard-of-hearing, and deaf-blind
80.4students.
80.5(j) $150,000 each year is for a grant to
80.6Advocating Change Together for training,
80.7technical assistance, and resource materials
80.8to persons with developmental and mental
80.9illness disabilities.
80.10(k) $250,000 each year for a grant to
80.11Lifetrack Resources for its immigrant/refugee
80.12collaborative programs, including those
80.13related to job-seeking skills and workplace
80.14orientation, intensive job development,
80.15functional work English, and on-site job
80.16coaching.
80.17(l) $1,075,000 each year is for the youthbuild
80.18program under Minnesota Statutes, sections
80.19116L.361 to 116L.366.
80.20(m) $1,350,000 each year is from the
80.21workforce development fund for grants
80.22to fund summer youth employment in
80.23Minneapolis. The grants shall be used to
80.24fund up to 500 jobs for youth each summer.
80.25Of this appropriation, $350,000 each year is
80.26for a grant to the learn-to-earn summer youth
80.27employment program. The commissioner
80.28shall establish criteria for awarding the
80.29grants. This appropriation is available in
80.30either year of the biennium and is available
80.31until spent.
80.32(n) $50,000 each year is for a grant
80.33to Northern Connections in Perham to
80.34implement and operate a pilot workforce
80.35program that provides one-stop supportive
81.1services to assist individuals as they transition
81.2into the workforce. This appropriation is
81.3available to the extent it is matched by $1 of
81.4nonstate money for each $1 of state money.
81.5(o) $100,000 each year is for a grant to
81.6Ramsey County Workforce Investment Board
81.7for the development of the building lives
81.8program. This is a onetime appropriation.
81.9(p) $300,000 each year is for a grant to the
81.10Hennepin-Carver Workforce Investment
81.11Board (WIB) to coordinate with the Partners
81.12for Progress Regional Skills Consortium
81.13to provide employment and training as
81.14demonstrated by the Twin Cities regional
81.15health care training partnership project.
81.16(q) $160,000 the first year is for a grant
81.17to Workforce Development, Inc., for a
81.18pilot project to provide demand-driven
81.19employment and training services to
81.20welfare recipients and other economically
81.21disadvantaged populations in Mower,
81.22Freeborn, Dodge, and Steele Counties. This
81.23is a onetime appropriation.
81.24(r) $200,000 each year is for a grant to
81.25HIRED to operate its industry sector training
81.26initiatives, which provide employee training
81.27developed in collaboration with employers in
81.28specific, high-demand industries. This is a
81.29onetime appropriation.
81.30(s) $200,000 the first year is for a grant
81.31to a nonprofit organization. The nonprofit
81.32organization must work on behalf of all
81.33licensed vendors to coordinate their efforts
81.34to respond to solicitations or other requests
81.35from private and governmental units as
82.1defined in Minnesota Statutes, section
82.2471.59, subdivision 1, in order to increase
82.3employment opportunities for persons with
82.4disabilities.
82.5(t) $3,500,000 each year from the workforce
82.6development fund is for the Minnesota youth
82.7program under Minnesota Statutes, section
82.8116L.56 and 116L.561.
82.9(u) $500,000 each year from the workforce
82.10development fund is for a grant to the
82.11Minnesota Alliance of Boys and Girls
82.12Clubs to administer a statewide project
82.13of youth job skills development. This
82.14project, which may have career guidance
82.15components, including health and life skills,
82.16is to encourage, train, and assist youth in
82.17job-seeking skills, workplace orientation,
82.18and job site knowledge through coaching.
82.19This grant requires a 25 percent match from
82.20nonstate resources.
82.21(v) $350,000 in each year from the workforce
82.22development fund is for a grant to Ramsey
82.23County for a summer youth employment
82.24program to place at-risk youth, ages 14 to 21,
82.25in subsidized summer employment.
82.26The commissioner must provide funding
82.27for the Minnesota Conservation Corps to
82.28provide learning stipends for deaf students
82.29and wages for interpreters participating in
82.30the MCC summer youth program.
82.31
Subd. 4.State-Funded Administration
2,998,000
3,020,000
82.32The first $1,450,000 deposited in each
82.33year of the biennium and in each year of
82.34subsequent bienniums into the contingent
82.35account created under Minnesota Statutes,
83.1section 268.196, subdivision 3, shall be
83.2transferred by June 30 of each fiscal year
83.3to the workforce development fund created
83.4under Minnesota Statutes, section 116L.20.
83.5Deposits in excess of $1,450,000 shall be
83.6transferred by June 30 of each fiscal year to
83.7the general fund.

83.8
83.9
Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY
83.10
Subdivision 1.Total Appropriation
$
29,002,000
$
29,794,000
83.11
Appropriations by Fund
83.12
2008
2009
83.13
General
4,644,000
5,035,000
83.14
83.15
Workers'
Compensation
21,716,000
22,053,000
83.16
83.17
Workforce
Development
765,000
781,000
83.18
83.19
State Government
Special Revenue
1,877,000
1,925,000
83.20The amounts that may be spent for each
83.21purpose are specified in the following
83.22subdivisions.
83.23
Subd. 2.Workers' Compensation
10,381,000
10,659,000
83.24This appropriation is from the workers'
83.25compensation fund.
83.26$200,000 each year is for grants to the
83.27Vinland Center for rehabilitation services.
83.28
Subd. 3.Safety Codes and Services
9,949,000
10,134,000
83.29$5,292,000 the first year and $5,388,000
83.30the second year are from the workers'
83.31compensation fund. $1,877,000 the first year
83.32and $1,925,000 the second year are from the
83.33state government special revenue fund.
83.34$1,000,000 each year is from the workers'
83.35compensation fund for patient safe handling
84.1grants under Minnesota Statutes, section
84.2182.6553.
84.3$100,000 each year is from the workers'
84.4compensation fund for the operation of
84.5the meatpacking industry workers' rights
84.6ombudsman under Minnesota Statutes,
84.7section 179.87.
84.8
Subd. 4.Labor Standards/Apprenticeship
2,629,000
2,995,000
84.9
Appropriations by Fund
84.10
General
1,864,000
2,214,000
84.11
84.12
Workforce
Development
765,000
781,000
84.13The appropriation from the workforce
84.14development fund is for the apprenticeship
84.15program under Minnesota Statutes, chapter
84.16178, and includes $100,000 each year for
84.17labor education and advancement program
84.18grants.
84.19$360,000 the first year and $300,000 the
84.20second year from the general fund are for
84.21prevailing wage enforcement of which
84.22$60,000 in the first year is for outreach and
84.23survey participation improvements.
84.24$800,000 the first year and $1,200,000 the
84.25second year from the general fund are for
84.26the independent contractor licensing under
84.27Minnesota Statutes, section 181.723.
84.28
Subd. 5.General Support
6,043,000
6,006,000
84.29This appropriation is from the workers'
84.30compensation fund.

84.31
84.32
Sec. 5. BUREAU OF MEDIATION
SERVICES
84.33
Subdivision 1.Total Appropriation
$
1,850,000
$
1,877,000
85.1The amounts that may be spent for each
85.2purpose are specified in the following
85.3subdivisions.
85.4
Subd. 2.Mediation Services
1,700,000
1,727,000
85.5
85.6
Subd. 3.Labor Management Cooperation
Grants
150,000
150,000
85.7$150,000 each year is for grants to area labor
85.8management committees. Grants may be
85.9awarded for a 12-month period beginning
85.10July 1 each year. Any unencumbered balance
85.11remaining at the end of the first year does not
85.12cancel but is available for the second year.

85.13
85.14
Sec. 6. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,663,000
$
1,710,000
85.15This appropriation is from the workers'
85.16compensation fund.

85.17
Sec. 7. BOARD OF ACCOUNTANCY
$
493,000
$
499,000

85.18
85.19
85.20
85.21
Sec. 8. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
795,000
$
805,000

85.22
Sec. 9. BOARD OF BARBER EXAMINERS
$
711,000
$
724,000

85.23
85.24
Sec. 10. MINNESOTA BOXING
COMMISSION
$
50,000
$
-0-
85.25To transition the commission to being a
85.26self-funded entity.

85.27    Sec. 11. BIOSCIENCE ZONES DESIGNATION.
85.28    The commissioner of employment and economic development must establish a
85.29criteria for expanding the zones. The criteria must limit designating a new zone to a
85.30community that has adequate resources and infrastructure to support bioindustry, including
85.31postsecondary institutions, strong health care systems, and existing bioscience companies.
85.32It must also require that a new zone be located on a transportation corridor.

86.1    Sec. 12. NANOTECHNOLOGY DEVELOPMENT FUND.
86.2    Subdivision 1. Nanotechnology development fund created. The nanotechnology
86.3development fund (NDF) is created in the state treasury. Money in the fund is appropriated
86.4to the commissioner of employment and economic development for the purposes of this
86.5section.
86.6    Subd. 2. Program established; purpose. The nanotechnology development
86.7fund program is established to develop a collaborative economic development initiative
86.8between the state of Minnesota, the private sector, and multiple academic institutions
86.9to promote by small businesses an increased use of advanced nanoinstrumentation for
86.10characterization, fabrication, and other related processes; provide research consulting
86.11by knowledgeable specialists; and provide student internship opportunities to increase
86.12nanotechnology experience by working with small, medium, or large Minnesota
86.13companies. The NDF program shall be administered by the Department of Employment
86.14and Economic Development and is not a state agency.
86.15    Subd. 3. Definition; qualifying Minnesota small business. "Qualifying Minnesota
86.16small business" means:
86.17    (1) a Minnesota small business corporation, sole proprietorship, or partnership that
86.18has fewer than 50 employees; or
86.19    (2) a Minnesota business corporation, sole proprietorship, or partnership that:
86.20    (i) has 51 to 100 employees; and
86.21    (ii) demonstrates current financial adversity or risk or a major prospect of aiding
86.22the business's long-term outlook by significant use of nanotechnology in the business's
86.23offerings.
86.24    Subd. 4. Use of fund; grants. The commissioner shall extend onetime matching
86.25grants from the NDF to qualifying Minnesota small businesses located throughout the
86.26state to:
86.27    (1) add nanotechnology applications to products that are being developed by
86.28Minnesota small businesses to enhance distinctiveness;
86.29    (2) promote the depth, breadth, and value of technologies being developed by
86.30Minnesota businesses with the aid of nanotechnology;
86.31    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product
86.32time-to-market, with higher incidence of distinct product characteristics;
86.33    (4) provide Minnesota small businesses with broader access to experienced research
86.34consultants; and
86.35    (5) increase the number of researchers experienced in working with
86.36nanoinstrumentation.
87.1    Subd. 5. Grant application and award procedure. (a) The commissioner may
87.2give priority to applicants:
87.3    (1) whose intellectual property would benefit from utilization of nanoinstrumentation
87.4not possessed in-house;
87.5    (2) who are currently utilizing nanoinstrumentation either at the University of
87.6Minnesota or a private sector location on a leased, hourly basis; and
87.7    (3) who wish to increase their access to experienced research consultants.
87.8    (b) The commissioner shall decide whether to award a grant to an eligible applicant
87.9based on:
87.10    (1) the applicant's planned frequency of usage of nanoinstrumentation for
87.11characterization, fabrication, and other related processes; and
87.12    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form
87.13of a signed affidavit from a certified facility to confirm the one-to-one private sector
87.14investment has been met.
87.15    (c) A grant made under this section must:
87.16    (1) include verification of matching rental fees or internship stipends paid by the
87.17grantee; and
87.18    (2) be for a total amount paid to each grantee of not less than $500 nor more than
87.19$20,000 within the biennium.
87.20    Subd. 6. Administration. The commissioner of employment and economic
87.21development must develop and maintain a record-keeping system that specifies how
87.22funds from the NDF are applied for and distributed. Businesses receiving grants
87.23from the NDF must provide contact information, the date and time of the use of the
87.24nanoinstrumentation, proof of their matching contribution to meet the rental costs or
87.25provide an internship's stipend, and a general statement of the expected outcome from
87.26the use of the nanoinstrumentation, to the extent documentation can be made without
87.27divulging proprietary information.
87.28    Subd. 7. Gifts and donations. Gifts and donations, including land or interests
87.29in land, may be made to NDF. Noncash gifts and donations must be disposed of for
87.30cash as soon as the commissioner of employment and economic development can
87.31prudently maximize the value of the gift or donation. All funds must be credited to the
87.32nanotechnology development fund. All interest earned by the fund must be credited to
87.33the NDF.
87.34    Subd. 8. Report to legislature. By June 30 of each odd-numbered year, the
87.35commissioner of employment and economic development must submit a report to the
87.36legislature with statistics about the use of the NDF.

88.1    Sec. 13. WORK GROUP.
88.2    The commissioner of employment and economic development shall convene a work
88.3group to evaluate the impact of the money appropriated for wage incentives and how the
88.4wage incentive program works. The work group is to make recommendations to the
88.5legislature by January 15, 2008.

88.6ARTICLE 7
88.7EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS

88.8    Section 1. Minnesota Statutes 2006, section 116J.401, is amended by adding a
88.9subdivision to read:
88.10    Subd. 4. Use of funds for unemployed worker assistance. Payment of employee
88.11compensation costs from the Wagner-Peyser Act referenced in subdivision 1, clause
88.12(8), must be used to provide direct benefit to unemployed and underemployed workers
88.13through the state's workforce centers. At least 75 percent of the employee compensation
88.14paid from Wagner-Peyser funds must be used for employees at workforce centers who
88.15provide direct assistance to unemployed and underemployed workers and no more than
88.1625 percent may be used for providing hiring and human resource services for employers.
88.17The funds under this section may be used to establish an internet based labor exchange
88.18system. By July 1 of each year, the commissioner must submit a report to the committees
88.19of the legislature responsible for oversight of unemployment insurance with details on
88.20the use of Wagner-Peyser funds, including the number of employee positions funded, the
88.21location of the employees, and the use of funds for internet labor exchange system and
88.22other business assistance.

88.23    Sec. 2. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT
88.24INVESTMENT FUND.
88.25    Subdivision 1. Eligible organization. For the purposes of this section, "eligible
88.26organization" means an organization established pursuant to section 116J.415 which
88.27provides business financing to greater Minnesota businesses.
88.28    Subd. 2. Investment fund establishment. The commissioner shall establish an
88.29investment fund from which fund investments can be made in eligible organizations. The
88.30funds repaid by the eligible organizations are to be returned to the fund for subsequent
88.31reinvestment in eligible organizations.
88.32    Subd. 3. Authorized investments. The commissioner is authorized to make
88.33investments in eligible organizations. The commissioner shall invest funds in the form of
89.1loans to eligible organizations for the purpose of providing capital to new and expanding
89.2businesses in the form of debt or equity, or both.
89.3    Subd. 4. Investment authorized. The commissioner may make investments in
89.4eligible organizations under the following terms:
89.5    (1) the organization seeking an investment of funds must guarantee repayment of not
89.6less than 100 percent of the funds invested in the eligible organization;
89.7    (2) the investments are to be made in the form of a loan to the eligible organization
89.8for a term of ten years, at an interest rate of one percent;
89.9    (3) during the ten-year term of the loan, the eligible organization shall make annual
89.10interest-only payments;
89.11    (4) at the end of the ten-year term, the eligible organization is required to make a
89.12payment in the entire principal amount of the initial loan;
89.13    (5) the state investment by the commissioner in any eligible organization may not
89.14exceed $2,000,000;
89.15    (6) the full amount of state investment will be advanced to the approved eligible
89.16organization upon execution of a formal investment agreement, specifying the terms of the
89.17loan, as well as reporting and other requirements outlined in subdivision 5;
89.18    (7) the eligible organization must maintain the funds in accounts that allow the funds
89.19to be readily available for business investments;
89.20    (8) the eligible organization must make business investments totaling the entire
89.21amount of funds loaned by the state within three years of the execution of the investment
89.22agreement and subsequent transmittal of the funds; and
89.23    (9) an eligible organization that receives an investment under this section shall
89.24report annually, in a format prescribed by the commissioner, the nature and amount of
89.25the business investments made, including, for each financing transaction involving funds
89.26received pursuant to this section, all forms and amounts of financing provided by the
89.27eligible organization from sources other than the investment fund established pursuant to
89.28this section, along with the number of jobs created and private sector investment leveraged.
89.29    Subd. 5. Requirements for state investments. All investments are subject to an
89.30investment agreement which must include:
89.31    (1) a description of the eligible organization, including business finance experience,
89.32qualifications, and investment history;
89.33    (2) a description of the uses of investment proceeds by the eligible organization;
89.34    (3) an explanation of the investment objectives;
89.35    (4) a description of accounting and reporting standards to be used by the eligible
89.36organization; and
90.1    (5) a copy of the most recent audited financial statements of the eligible organization.

90.2    Sec. 3. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:
90.3    Subdivision 1. Grant account. A contaminated site cleanup and development
90.4grant account is created in the general fund. Money in the account may be used, as
90.5appropriated by law, to make grants as provided in section 116J.554 and to pay for the
90.6commissioner's costs in reviewing applications and making grants. Notwithstanding
90.7section 16A.28, money appropriated to the account for this program from any source is
90.8available for four years until spent.

90.9    Sec. 4. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:
90.10    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the
90.11following criteria are met:
90.12    (1) the site is not scheduled for funding during the current or next fiscal year under
90.13the Comprehensive Environmental Response, Compensation, and Liability Act, United
90.14States Code, title 42, section 9601, et seq. or under the Environmental Response, and
90.15Liability Act under sections 115B.01 to 115B.20;
90.16    (2) the appraised value of the site after adjusting for the effect on the value of the
90.17presence or possible presence of contaminants using accepted appraisal methodology, or
90.18the current market value of the site as issued under section 273.121, separately taking into
90.19account the effect of the contaminants on the market value, (i) is less than 75 percent of
90.20the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup
90.21costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and
90.22    (3) (2) if the proposed cleanup is completed, it is expected that the site will be
90.23improved with buildings or other improvements and these improvements will provide a
90.24substantial increase in the property tax base within a reasonable period of time or the site
90.25will be used for an important publicly owned or tax-exempt facility.

90.26    Sec. 5. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:
90.27    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
90.28will exceed the available appropriations and the agency will be able to provide grants to
90.29only some of the applicant development authorities.
90.30    (b) If applications for grants for qualified sites exceed the available appropriations,
90.31the agency shall make grants for sites that, in the commissioner's judgment, provide
90.32the highest return in public benefits for the public costs incurred and that meet all the
91.1requirements provided by law. In making this judgment, the commissioner shall consider
91.2the following factors:
91.3    (1) the recommendations or ranking of projects by the commissioner of the Pollution
91.4Control Agency regarding the potential threat to public health and the environment that
91.5would be reduced or eliminated by completion of each of the response action plans;
91.6    (2) the potential increase in the property tax base of the local taxing jurisdictions,
91.7considered relative to the fiscal needs of the jurisdictions, that will result from
91.8developments that will occur because of completion of each of the response action plans;
91.9    (3) the social value to the community of the cleanup and redevelopment of the site,
91.10including the importance of development of the proposed public facilities on each of
91.11the sites;
91.12    (4) the probability that each site will be cleaned up without use of government
91.13money in the reasonably foreseeable future by considering but not limited to the current
91.14market value of the site versus the cleanup cost;
91.15    (5) the amount of cleanup costs for each site; and
91.16    (6) the amount of the commitment of municipal or other local resources to pay for
91.17the cleanup costs.
91.18    The factors are not listed in a rank order of priority; rather the commissioner may
91.19weigh each factor, depending upon the facts and circumstances, as the commissioner
91.20considers appropriate. The commissioner may consider other factors that affect the net
91.21return of public benefits for completion of the response action plan. The commissioner,
91.22notwithstanding the listing of priorities and the goal of maximizing the return of public
91.23benefits, shall make grants that distribute available money to sites both within and outside
91.24of the metropolitan area. The commissioner shall provide a written statement of the
91.25supporting reasons for each grant. Unless sufficient applications are not received for
91.26qualifying sites outside of the metropolitan area, at least 25 percent of the money provided
91.27as grants must be made for sites located outside of the metropolitan area.

91.28    Sec. 6. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:
91.29    Subdivision 1. Commissioner discretion. The commissioner may make a grant for
91.30up to 50 percent of the eligible costs of a project. The determination of whether to make a
91.31grant for a site is within the discretion of the commissioner, subject to this section and
91.32sections 116J.571 to 116J.574 and available unencumbered money in the redevelopment
91.33account. For grants made in fiscal years 2008 and 2009, at least 75 percent of the available
91.34grant funds must be used for grants in greater Minnesota. For grants made in fiscal year
91.352010 and later, at least 50 percent of the available grant funds must be used for grants
92.1in greater Minnesota. If the commissioner determines that the applications for grants
92.2for projects in greater Minnesota are less than the amount of grant funds available, the
92.3commissioner may make grants for projects anywhere in Minnesota. The commissioner's
92.4decisions and application of the priorities under this section are not subject to judicial
92.5review, except for abuse of discretion.

92.6    Sec. 7. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:
92.7    Subd. 1a. Priorities. (a) If applications for grants exceed the available
92.8appropriations, grants shall be made for sites that, in the commissioner's judgment, provide
92.9the highest return in public benefits for the public costs incurred. "Public benefits" include
92.10job creation, bioscience development, environmental benefits to the state and region,
92.11efficient use of public transportation, efficient use of existing infrastructure, provision of
92.12affordable housing, multiuse development that constitutes community rebuilding rather
92.13than single-use development, crime reduction, blight reduction, community stabilization,
92.14and property tax base maintenance or improvement. In making this judgment, the
92.15commissioner shall give priority to redevelopment projects with one or more of the
92.16following characteristics:
92.17    (1) the need for redevelopment in conjunction with contamination remediation needs;
92.18    (2) the redevelopment project meets current tax increment financing requirements
92.19for a redevelopment district and tax increments will contribute to the project;
92.20    (3) the redevelopment potential within the municipality;
92.21    (4) proximity to public transit if located in the metropolitan area; and
92.22    (5) redevelopment costs related to expansion of a bioscience business in Minnesota;
92.23and
92.24    (5) (6) multijurisdictional projects that take into account the need for affordable
92.25housing, transportation, and environmental impact.
92.26    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
92.27commissioner may weigh each factor, depending upon the facts and circumstances, as
92.28the commissioner considers appropriate. The commissioner may consider other factors
92.29that affect the net return of public benefits for completion of the redevelopment plan. The
92.30commissioner, notwithstanding the listing of priorities and the goal of maximizing the
92.31return of public benefits, shall make grants that distribute available money to sites both
92.32within and outside of the metropolitan area. Unless sufficient applications are not received
92.33for qualifying sites outside of the metropolitan area, at least 25 percent of the money
92.34provided as grants must be made for sites located outside of the metropolitan area.

93.1    Sec. 8. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:
93.2    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and
93.3facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in
93.4addition to the powers granted by section 116J.035, the commissioner may:
93.5    (1) locate, develop, and promote international markets for Minnesota products
93.6and services;
93.7    (2) arrange and lead trade missions to countries with promising international markets
93.8for Minnesota goods, technology, services, and agricultural products;
93.9    (3) promote Minnesota products and services at domestic and international trade
93.10shows;
93.11    (4) organize, promote, and present domestic and international trade shows featuring
93.12Minnesota products and services;
93.13    (5) host trade delegations and assist foreign traders in contacting appropriate
93.14Minnesota businesses and investments;
93.15    (6) develop contacts with Minnesota businesses and gather and provide information
93.16to assist them in locating and communicating with international trading or joint venture
93.17counterparts;
93.18    (7) provide information, education, and counseling services to Minnesota businesses
93.19regarding the economic, commercial, legal, and cultural contexts of international trade;
93.20    (8) provide Minnesota businesses with international trade leads and information
93.21about the availability and sources of services relating to international trade, such as
93.22export financing, licensing, freight forwarding, international advertising, translation, and
93.23custom brokering;
93.24    (9) locate, attract, and promote foreign direct investment and business development
93.25in Minnesota to enhance employment opportunities in Minnesota;
93.26    (10) provide foreign businesses and investors desiring to locate facilities in
93.27Minnesota information regarding sources of governmental, legal, real estate, financial, and
93.28business services;
93.29    (11) enter into contracts or other agreements with private persons and public entities,
93.30including agreements to establish and maintain offices and other types of representation in
93.31foreign countries, to carry out the purposes of promoting international trade and attracting
93.32investment from foreign countries to Minnesota and to carry out this section, without
93.33regard to section 16C.06; and
93.34    (12) market trade-related materials to businesses and organizations, and the proceeds
93.35of which must be placed in a special revolving account and are appropriated to the
93.36commissioner to prepare and distribute trade-related materials.
94.1    (b) The programs and activities of the commissioner of employment and economic
94.2development and the Minnesota Trade Division may not duplicate programs and activities
94.3of the commissioner of agriculture.
94.4    (c) The commissioner shall notify the chairs of the senate Finance and house Ways
94.5and Means Committees of each agreement under this subdivision to establish and maintain
94.6an office or other type of representation in a foreign country.
94.7    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing
94.8assistance to official visits by foreign government representatives and shall serve as liaison
94.9to the foreign diplomatic corps in Minnesota.

94.10    Sec. 9. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision
94.11to read:
94.12    Subd. 4. Workforce development intermediaries. "Workforce development
94.13intermediaries" means public, private, or nonprofit entities that provide employment
94.14services to low-income individuals and have a demonstrated track record bringing together
94.15employers and workers, private and public funding streams, and other stakeholders to
94.16implement pathways to career advancement for low-income individuals. Entities may
94.17include, but are not limited to, nonprofit organizations, educational institutions, or the
94.18administrative entity of a local workforce service area.

94.19    Sec. 10. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:
94.20    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid
94.21for developing programs which assist in the transition of persons from welfare to work and
94.22assist individuals at or below 200 percent of the federal poverty guidelines. The program
94.23is to be operated by the board. The board shall consult and coordinate with program
94.24administrators at the Department of Employment and Economic Development to design
94.25and provide services for temporary assistance for needy families recipients.
94.26    Pathways grants-in-aid may be awarded to educational or other nonprofit training
94.27institutions or to workforce development intermediaries for education and training
94.28programs and services supporting education and training programs that serve eligible
94.29recipients.
94.30    Preference shall be given to projects that:
94.31    (1) provide employment with benefits paid to employees;
94.32    (2) provide employment where there are defined career paths for trainees;
94.33    (3) pilot the development of an educational pathway that can be used on a continuing
94.34basis for transitioning persons from welfare to work; and
95.1    (4) demonstrate the active participation of Department of Employment and
95.2Economic Development workforce centers, Minnesota State College and University
95.3institutions and other educational institutions, and local welfare agencies.
95.4    Pathways projects must demonstrate the active involvement and financial
95.5commitment of private business. Pathways projects must be matched with cash or in-kind
95.6contributions on at least a one-to-one one-half-to-one ratio by participating private
95.7business.
95.8    A single grant to any one institution shall not exceed $400,000. A portion of a grant
95.9may be used for preemployment training.

95.10    Sec. 11. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:
95.11    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
95.12have the meanings given them in this subdivision.
95.13    (b) "Commissioner" means the commissioner of employment and economic
95.14development.
95.15    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the
95.16time employment ceased or was working in the state at the time employment ceased and:
95.17    (1) has been permanently separated or has received a notice of permanent separation
95.18from public or private sector employment and is eligible for or has exhausted entitlement
95.19to unemployment benefits, and is unlikely to return to the previous industry or occupation;
95.20    (2) has been long-term unemployed and has limited opportunities for employment
95.21or reemployment in the same or a similar occupation in the area in which the individual
95.22resides, including older individuals who may have substantial barriers to employment by
95.23reason of age;
95.24    (3) has been terminated or has received a notice of termination of employment as a
95.25result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
95.26    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
95.27result of general economic conditions in the community in which the individual resides or
95.28because of natural disasters; or
95.29    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who
95.30has spent a substantial number of years in the home providing homemaking service and
95.31(i) has been dependent upon the financial support of another; and now due to divorce,
95.32separation, death, or disability of that person, must find employment to self support; or (ii)
95.33derived the substantial share of support from public assistance on account of dependents
95.34in the home and no longer receives such support.
96.1    To be eligible under this clause, the support must have ceased while the worker
96.2resided in Minnesota.
96.3    (d) "Eligible organization" means a state or local government unit, nonprofit
96.4organization, community action agency, business organization or association, or labor
96.5organization.
96.6    (e) "Plant closing" means the announced or actual permanent shutdown of a single
96.7site of employment, or one or more facilities or operating units within a single site of
96.8employment.
96.9    (f) "Substantial layoff" means a permanent reduction in the workforce, which is
96.10not a result of a plant closing, and which results in an employment loss at a single site
96.11of employment during any 30-day period for at least 50 employees excluding those
96.12employees that work less than 20 hours per week.

96.13    Sec. 12. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:
96.14    Subdivision 1. Determination and collection of special assessment. (a) In addition
96.15to amounts due from an employer under the Minnesota unemployment insurance program,
96.16each employer, except an employer making reimbursements is liable for a special
96.17assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on
96.18all taxable wages, as defined in section 268.035, subdivision 24. Beginning January 1,
96.192008, the special assessment shall be levied at a rate of .085 percent per year on all taxable
96.20wages. The assessment shall become due and be paid by each employer on the same
96.21schedule and in the same manner as other amounts due from an employer under section
96.22268.051, subdivision 1 .
96.23    (b) The special assessment levied under this section shall be subject to the same
96.24requirements and collection procedures as any amounts due from an employer under the
96.25Minnesota unemployment insurance program.

96.26    Sec. 13. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:
96.27    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
96.28corporation with which it has entered into an agreement under subdivision 1. These
96.29loans must be used to support a new or expanding business. This support may include
96.30such forms of financing as the sale of goods to the business on installment or deferred
96.31payments, lease purchase agreements, or royalty investments in the business. The interest
96.32rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
96.33the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
96.34nonprofit corporation may charge a loan origination fee equal to or less than one percent
97.1of the loan value. The nonprofit corporation may retain the amount of the origination fee.
97.2The nonprofit corporation must provide at least an equal match to the loan received by the
97.3board. The maximum loan available to the nonprofit corporation under this subdivision is
97.4$50,000. Loans made to the nonprofit corporation under this subdivision may be made
97.5without interest. Repayments made by the nonprofit corporation must be deposited in the
97.6revolving fund created for urban initiative grants.

97.7    Sec. 14. [116O.115] SMALL BUSINESS GROWTH ACCELERATION
97.8PROGRAM.
97.9    Subdivision 1. Establishment; purpose. The small business growth acceleration
97.10program is established. The purpose of the program is to (1) help qualified companies
97.11implement technology and business improvements; and (2) bridge the gap between
97.12standard market pricing for technology and business improvements and what qualified
97.13companies can afford to pay.
97.14    Subd. 2. Qualified company. A company is qualified to receive assistance under
97.15the small business growth acceleration program if it is a manufacturing company or a
97.16manufacturing-related service company that employs 100 or fewer full-time equivalent
97.17employees.
97.18    Subd. 3. Applications for assistance. A company seeking assistance under the
97.19small business growth acceleration program must file an application according to the
97.20requirements of the corporation. A company's application for small business growth
97.21acceleration program assistance must include documentation of the company's overall plan
97.22for technology and business improvement and prioritize the components of the overall
97.23plan. The application must also document the company's need for small business growth
97.24acceleration program funds in order to carry forward the highest priority components of
97.25the plan.
97.26    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish
97.27procedures for determining which applicants for assistance under the small business
97.28growth acceleration program will receive program funding. Funding shall be awarded
97.29only to accelerate a qualified company's adoption of needed technology or business
97.30improvements when the corporation concludes that it is unlikely the improvements could
97.31be accomplished in any other way.
97.32    (b) The maximum amount of funds awarded to a qualified company under the small
97.33business growth acceleration program for a particular project must not exceed 50 percent
97.34of the total cost of a project and must not under any circumstances exceed $25,000 during
98.1a calendar year. The corporation shall not award to a qualified company small business
98.2growth acceleration program funds in excess of $50,000 per year.
98.3    (c) Any funds awarded to a qualified company under the small business growth
98.4acceleration program must be used for business services and products that will enhance the
98.5operation of the company. These business services and products must come either directly
98.6from the corporation or from a network of expert providers identified and approved by
98.7the corporation. No company receiving small business growth acceleration program
98.8funds may use the funds for refinancing, overhead costs, new construction, renovation,
98.9equipment, or computer hardware.
98.10    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
98.11documented according to requirements of the corporation.
98.12    Subd. 5. Service agreements. The corporation shall enter a written service
98.13agreement with each company awarded funds under the small business growth acceleration
98.14program. Each service agreement shall clearly articulate the company's need for service,
98.15state the cost of the service, identify who will provide the service, and define the scope of
98.16the service that will be provided. The service agreement must also include an estimate
98.17of the financial impact of the service on the company and require the company to report
98.18the actual financial impact of the service to the corporation 24 months after the service is
98.19provided.
98.20    Subd. 6. Reporting. The corporation shall report annually to the legislative
98.21committees with fiscal jurisdiction over the Department of Employment and Economic
98.22Development:
98.23    (1) the funds awarded under the small business growth acceleration program during
98.24the past 12 months;
98.25    (2) the estimated financial impact of the funds awarded to each company receiving
98.26service under the program; and
98.27    (3) the actual financial impact of funds awarded during the past 24 months.

98.28    Sec. 15. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.
98.29    Subdivision 1. Definitions. For the purposes of this section and section 179.87:
98.30    (1) "employer" means any person or business entity having 25 or more employees
98.31in the meatpacking industry; and
98.32    (2) "meatpacking industry" means business operations in which slaughtering,
98.33butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry
98.34packing, poultry manufacturing, pet food manufacturing, processing of meatpacking
99.1products, or rendering is carried on. Meatpacking products include livestock and poultry
99.2products.
99.3    Subd. 2. Right to adequate facilities. An employer must provide its employees:
99.4    (1) adequate and working restroom facilities;
99.5    (2) adequate room for meal and rest breaks;
99.6    (3) adequate locker facilities; and
99.7    (4) adequate time for necessary restroom and meal breaks as required under chapter
99.8177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter
99.9126, or a valid collective bargaining agreement.
99.10    Subd. 3. Right to adequate equipment and training. An employer must furnish its
99.11employees with equipment and training that is adequate to perform the job task assigned.
99.12An employer must make ongoing skill development and training opportunities, including
99.13supervisory training, available to employees.
99.14    Subd. 4. Information provided to employee by employer. (a) An employer must
99.15provide an explanation in an employee's native language of the employee's rights and
99.16duties as an employee either person-to-person or through written materials as required
99.17by state or federal law, or a valid collective bargaining agreement that, at a minimum,
99.18includes:
99.19    (1) a complete description of the salary and benefits plans as they relate to the
99.20employee as required under chapter 181;
99.21    (2) a job description for the employee's position as required under chapter 181;
99.22    (3) a description of leave policies as required under chapter 181 and United States
99.23Code, title 29, chapter 28;
99.24    (4) a description of the work hours and work hours policy as required under chapter
99.25181; United States Code, title 29, chapter 201; or a valid collective bargaining agreement;
99.26and
99.27    (5) a description of the occupational hazards known to exist for the position as
99.28required under chapters 181 and 182 and United States Code, title 29, chapter 15.
99.29    (b) The explanation must also include information on the following employee rights
99.30as protected by state or federal law and a description of where additional information
99.31about those rights may be obtained:
99.32    (1) the right to organize and bargain collectively as required under this chapter and
99.33chapter 177, and United States Code, title 29, chapter 7;
99.34    (2) the right to a safe workplace as required under chapters 181 and 182 and United
99.35States Code, title 29, chapter 15; and
100.1    (3) the right to be free from discrimination as required under this chapter and
100.2chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.
100.3    Subd. 5. Civil action. A person aggrieved as a result of a violation of this section
100.4may file suit in any district court of this state. If the court finds that the respondent has
100.5intentionally violated this section, the court may award damages up to and including an
100.6amount equal to the original damages and may provide injunctive relief.
100.7    Subd. 6. Criminal penalty. An employer who violates this section is guilty of a
100.8misdemeanor.

100.9    Sec. 16. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS
100.10OMBUDSMAN.
100.11    Subdivision 1. Position established. The position of meatpacking industry workers
100.12rights ombudsman is established within the Department of Labor and Industry. The
100.13ombudsman shall be an employee of the department. The ombudsman shall be appointed
100.14by the commissioner in consultation with the chairs of the standing committees of the
100.15senate and house of representatives with jurisdiction over labor and employment issues in
100.16accordance with the preference established in subdivision 5.
100.17    Subd. 2. Duties. The ombudsman shall inspect and review the practices and
100.18procedures of meatpacking operations in the state. The ombudsman shall work to ensure
100.19workers rights under section 179.86 are protected.
100.20    Subd. 3. Access. The ombudsman or designated representatives of the ombudsman
100.21shall have access to all meatpacking operations in the state at any time meatpacking
100.22products are being processed and industry workers are on the job.
100.23    Subd. 4. Office. Necessary office space, furniture, equipment, and supplies as
100.24well as necessary assistance for the ombudsman shall be provided by the Department of
100.25Labor and Industry.
100.26    Subd. 5. Language preference. Preference shall be given to applicants for the
100.27ombudsman position who are fluent in languages in addition to English.
100.28    Subd. 6. Report. The ombudsman shall, on or before December 1 of each year,
100.29submit a report to the members of the legislature and the governor regarding any
100.30recommended actions the ombudsman deems necessary or appropriate to provide for the
100.31fair treatment of workers in the meatpacking industry.

100.32    Sec. 17. Minnesota Statutes 2006, section 181.78, is amended by adding a subdivision
100.33to read:
101.1    Subd. 4. Forfeiture of employer rights. (a) This subdivision applies to an
101.2invention or proposal by an employee in which the employer has an enforceable interest
101.3by contract or otherwise.
101.4    (b) An employer who has a right to develop or utilize an invention or proposal
101.5must make a substantial investment in the invention or proposal within five years of the
101.6submission of the invention or proposal or forfeit all rights and interests in the invention
101.7or proposal to the employee.
101.8    (c) An employee who has acquired the rights and interests of an employer under
101.9paragraph (b) may transfer that interest in the invention or proposal to anyone.
101.10    (d) An employer must notify in writing an employee who submits an invention or
101.11proposal to the employer of the employee's right under this subdivision within ten days of
101.12the submission. The employer must date and describe the proposal or invention received
101.13by the employer and provide a copy to the employee.

101.14    Sec. 18. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE
101.15PRESENCE OF LIQUOR.
101.16    No minor under the age of 18 shall be employed in any rooms constituting the place
101.17in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any
101.18tasks involving the serving, dispensing, or handling of such liquors that are consumed on
101.19the premises except that:
101.20    (1) minors who have reached the age of 16 may be employed to perform busing or
101.21dishwashing services in those rooms or areas of a restaurant, hotel, motel, or resort where
101.22the presence of intoxicating liquor is incidental to food service or preparation;
101.23    (2) minors who have reached the age of 16 may be employed to perform busing or
101.24dishwashing services or to provide waiter or waitress service in rooms or areas where the
101.25presence of 3.2 percent malt liquor is incidental to food service or preparation;
101.26    (3) minors who have reached the age of 16 may be employed to provide musical
101.27entertainment in those rooms or areas where the presence of intoxicating liquor and 3.2
101.28percent malt liquor is incidental to food service or preparation; and
101.29    (4) minors are not prevented from working at tasks which are not prohibited by law
101.30in establishments where liquor is sold, served, dispensed, or handled in those rooms or
101.31areas where no liquor is consumed or served.

101.32    Sec. 19. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:
101.33    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on
101.34employers and employees of this state resulting from personal injuries and illnesses arising
102.1out of work situations is substantial; that the prevention of these injuries and illnesses is an
102.2important objective of the government of this state; that the greatest hope of attaining this
102.3objective lies in programs of research and education, and in the earnest cooperation of
102.4government, employers and employees; and that a program of regulation and enforcement
102.5is a necessary supplement to these more basic programs.
102.6    The legislature declares it to be its purpose and policy through the exercise of its
102.7powers to assure so far as possible every worker in the state of Minnesota safe and
102.8healthful working conditions and to preserve our human resources by:
102.9    (a) authorizing the Occupational Safety and Health Advisory Council to advise,
102.10consult with or recommend on any matters relating to the Minnesota occupational
102.11safety and health plan to the commissioner of labor and industry and by authorizing the
102.12commissioner of labor and industry to promulgate and enforce mandatory occupational
102.13safety and health standards applicable to employers and employees in the state of
102.14Minnesota;
102.15    (b) encouraging employers and employees to increase their efforts to reduce the
102.16number of occupational safety and health hazards at their places of employment, and to
102.17stimulate employers and employees to institute new and to perfect existing programs for
102.18providing safe and healthful working conditions;
102.19    (c) providing that employers and employees have separate but dependent
102.20responsibilities and rights with respect to achieving safe and healthful working conditions;
102.21    (d) providing for research in the field of occupational safety and health; including
102.22the psychological factors involved, and by developing innovative methods, techniques,
102.23and approaches for dealing with occupational safety and health problems;
102.24    (e) exploring ways to discover latent diseases, establishing causal connections
102.25between diseases and work in environmental conditions, and conducting other research
102.26relating to health problems, in recognition of the fact that occupational health standards
102.27present problems often different from those involved in occupational safety;
102.28    (f) utilizing advances already made by federal laws and regulations providing safe
102.29and healthful working conditions;
102.30    (g) providing criteria which will assure insofar as practicable that no employee
102.31will suffer diminished health, functional capacity, or life expectancy as a result of work
102.32experience;
102.33    (h) providing an effective enforcement program which shall include locating
102.34enforcement personnel in areas of the state with a higher incidence of workplace fatalities,
102.35injuries, and complaints and a prohibition against giving advance notice of an inspection
102.36and sanctions for any individual violating this prohibition;
103.1    (i) providing for appropriate reporting procedures with respect to occupational
103.2safety and health, which procedures will help achieve the objectives of this chapter and
103.3accurately describe the nature of the occupational safety and health problem;
103.4    (j) encouraging joint labor-management efforts to reduce injuries and diseases
103.5arising out of employment;
103.6    (k) providing consultation to employees and employers which will aid them in
103.7complying with their responsibilities under this chapter where such consultation does not
103.8interfere with the effective enforcement of this chapter; and
103.9    (l) providing for training programs to increase the number and competence of
103.10personnel engaged in the field of occupational safety and health.

103.11    Sec. 20. [182.6551] CITATION.
103.12    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."

103.13    Sec. 21. [182.6552] DEFINITIONS.
103.14    Subdivision 1. Direct patient care worker. "Direct patient care worker" means an
103.15individual doing the job of directly providing physical care to patients including nurses, as
103.16defined by section 148.171, who provide physical care to patients.
103.17    Subd. 2. Health care facility. "Health care facility" means a hospital as defined in
103.18section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55,
103.19subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.
103.20    Subd. 3. Safe patient handling. "Safe patient handling" means a process, based on
103.21scientific evidence on causes of injuries, that uses safe patient handling equipment rather
103.22than people to transfer, move, and reposition patients in all health care facilities to reduce
103.23workplace injuries. This process also reduces the risk of injury to patients.
103.24    Subd. 4. Safe patient handling equipment. "Safe patient handling equipment"
103.25means engineering controls, lifting and transfer aids, or mechanical assistive devices used
103.26by nurses and other direct patient care workers instead of manual lifting to perform the
103.27acts of lifting, transferring, and repositioning health care facility patients and residents.

103.28    Sec. 22. [182.6553] SAFE PATIENT HANDLING PROGRAM.
103.29    Subdivision 1. Safe patient handling program required. (a) By July 1, 2008,
103.30every licensed health care facility in the state shall adopt a written safe patient handling
103.31policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing
103.32manual lifting of patients by nurses and other direct patient care workers by utilizing
103.33safe patient handling equipment.
104.1    (b) The program shall address:
104.2    (1) assessment of hazards with regard to patient handling;
104.3    (2) the acquisition of an adequate supply of appropriate safe patient handling
104.4equipment;
104.5    (3) initial and ongoing training of nurses and other direct patient care workers on
104.6the use of this equipment;
104.7    (4) procedures to ensure that physical plant modifications and major construction
104.8projects are consistent with program goals; and
104.9    (5) periodic evaluations of the safe patient handling program.
104.10    Subd. 2. Safe patient handling committee. (a) By July 1, 2008, every licensed
104.11health care facility in the state shall establish a safe patient handling committee either by
104.12creating a new committee or assigning the functions of a safe patient handling committee
104.13to an existing committee.
104.14    (b) Membership of a safe patient handling committee or an existing committee must
104.15meet the following requirements:
104.16    (1) at least half the members shall be nonmanagerial nurses and other direct patient
104.17care workers; and
104.18    (2) in a health care facility where nurses and other direct patient care workers
104.19are covered by a collective bargaining agreement, the union shall select the committee
104.20members proportionate to its representation of nonmanagerial workers, nurses, and other
104.21direct patient care workers.
104.22    (c) A health care organization with more than one covered health care facility may
104.23establish a committee at each facility or one committee to serve this function for all the
104.24facilities. If the organization chooses to have one overall committee for multiple facilities,
104.25at least half of the members of the overall committee must be nonmanagerial nurses and
104.26other direct patient care workers and each facility must be represented on the committee.
104.27    (d) Employees who serve on a safe patient handling committee must be compensated
104.28by their employer for all hours spent on committee business.
104.29    Subd. 3. Facilities with existing programs. A facility that has already adopted a
104.30safe patient handling policy that satisfies the requirements of subdivision 1, and established
104.31a safe patient handling committee by July 1, 2008, is considered to be in compliance
104.32with those requirements. The committee must continue to satisfy the requirements of
104.33subdivision 2, paragraph (b), on an ongoing basis.
104.34    Subd. 4. Committee duties. A safe patient handling committee shall:
104.35    (1) complete a patient handling hazard assessment that:
105.1    (i) considers patient handling tasks, types of nursing units, patient populations, and
105.2the physical environment of patient care areas;
105.3    (ii) identifies problems and solutions;
105.4    (iii) identifies areas of highest risk for lifting injuries; and
105.5    (iv) recommends a mechanism to report, track, and analyze injury trends;
105.6    (2) make recommendations on the purchase, use, and maintenance of an adequate
105.7supply of appropriate safe patient handling equipment;
105.8    (3) make recommendations on training of nurses and other direct patient care
105.9workers on use of safe patient handling equipment, initially when the equipment arrives at
105.10the facility and periodically afterwards;
105.11    (4) conduct annual evaluations of the safe patient handling implementation plan and
105.12progress toward goals established in the safe patient handling policy; and
105.13    (5) recommend procedures to ensure that, when remodeling of patient care areas
105.14occurs, the plans incorporate safe patient handling equipment or the physical space and
105.15construction design needed to accommodate safe patient handling equipment at a later date.
105.16    Subd. 5. Training materials. The commissioner shall make training materials on
105.17implementation of this section available to all health care facilities at no cost as part of the
105.18training and education duties of the commissioner under section 182.673.
105.19    Subd. 6. Enforcement. This section shall be enforced by the commissioner under
105.20section 182.661. A violation of this section is subject to the penalties provided under
105.21section 182.666.
105.22    Subd. 7. Grant program. The commissioner may make grants to health care
105.23facilities to acquire safe patient handling equipment and for training on safe patient
105.24handling and safe patient handling equipment. Grants to any one facility may not exceed
105.25$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The
105.26commissioner shall establish a grant application process. The commissioner may give
105.27priority for grants to facilities that demonstrate that acquiring safe patient handling
105.28equipment will impose a financial hardship on the facility. For health care facilities
105.29that provide evidence of hardship, the commissioner may waive the 50 percent match
105.30requirement and may grant such a facility more than $40,000. Health care facilities that
105.31the commissioner determines are experiencing hardship shall not be required to meet the
105.32safe patient handling requirements until July 1, 2012.

105.33    Sec. 23. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:
105.34    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall not
105.35be eligible to receive unemployment benefits for any week with respect to which the
106.1applicant is receiving, has received, or has filed for payment, equal to or in excess of the
106.2applicant's weekly unemployment benefit amount, in the form of:
106.3    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
106.4shall not apply to vacation pay paid upon a permanent separation from employment;
106.5    (2) severance pay, bonus pay, sick pay, and any other money payments, except
106.6earnings under subdivision 5, and back pay under subdivision 6, paid by an employer
106.7because of, upon, or after separation from employment, but only if the money payment is
106.8considered wages at the time of payment under section 268.035, subdivision 29, or United
106.9States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;.
106.10This clause does not apply to the first $10,000 of any amount of severance pay, bonus
106.11pay, sick pay, or any other payments paid to an employee with annual salary or wages
106.12under $75,000; or
106.13    (3) pension, retirement, or annuity payments from any plan contributed to by a base
106.14period employer including the United States government, except Social Security benefits
106.15which are provided for in subdivision 4. The base period employer contributed to the
106.16plan if the contribution is excluded from the definition of wages under section 268.035,
106.17subdivision 29
, clause (1), or United States Code, title 26, section 3121, clause (2), of
106.18the Federal Insurance Contribution Act.
106.19    An applicant shall not be considered to have received the lump sum payment if the
106.20applicant immediately deposits that payment in a qualified pension plan or account; or
106.21    (4) holiday pay.
106.22    (b) This subdivision shall apply to all the weeks of payment and shall be applied to
106.23the period immediately following the last day of employment. The number of weeks of
106.24payment shall be determined as follows:
106.25    (1) if the payments are made periodically, the total of the payments to be received
106.26shall be divided by the applicant's last level of regular weekly pay from the employer; or
106.27    (2) if the payment is made in a lump sum, that sum shall be divided by the applicant's
106.28last level of regular weekly pay from the employer.
106.29    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
106.30unemployment benefits shall be reduced by the amount of the payment. If the computation
106.31of reduced unemployment benefits is not a whole dollar, it shall be rounded down to the
106.32next lower whole dollar.
106.33EFFECTIVE DATE.This section is effective for unemployment benefits paid on
106.34or after January 1, 2006, regardless of when the continued request was filed or the week
106.35for which the unemployment benefits are paid.

107.1    Sec. 24. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision
107.2to read:
107.3    Subd. 5. Unemployment insurance benefits telephone system. The commissioner
107.4must ensure that the telephone system used for unemployment insurance benefits provides
107.5an option for any caller to speak to an unemployment insurance specialist. An individual
107.6who calls any of the publicized telephone numbers seeking information about applying for
107.7benefits or on the status of a claim must have the option to speak on the telephone to a
107.8specialist who can provide direct assistance or can direct the caller to the person or office
107.9that is able to respond to the caller's needs.

107.10    Sec. 25. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:
107.11    Subd. 13. Supported employment. (a) "Supported employment" means
107.12employment of a person with a disability so severe that the person needs ongoing training
107.13and support to get and keep a job in which:
107.14    (1) the person engages in paid work in a position removed from the service vendor's
107.15site where individuals without disabilities who do not require public subsidies also may
107.16be employed;
107.17    (2) public funds are necessary to provide ongoing training and support services
107.18throughout the period of the person's employment; and
107.19    (3) the person has the opportunity for social interaction with individuals who do not
107.20have disabilities and who are not paid caregivers.
107.21    (b) If the commissioner has certified a rehabilitation facility setting as integrated,
107.22then employment at that site may be considered supported employment.

107.23    Sec. 26. Minnesota Statutes 2006, section 268A.01, is amended by adding a
107.24subdivision to read:
107.25    Subd. 14. Affirmative business enterprise employment. "Affirmative business
107.26enterprise employment" means employment which provides paid work on the premises of
107.27an affirmative business enterprise as certified by the commissioner.
107.28    Affirmative business enterprise employment is considered community employment
107.29for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided
107.30that the wages for individuals reported must be at or above customary wages for the
107.31same employer. The employer must also provide one benefit package that is available to
107.32all employees.

107.33    Sec. 27. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:
108.1    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit
108.2corporation, or combination thereof establishing a rehabilitation facility shall appoint a
108.3rehabilitation facility board of no fewer than nine seven voting members before becoming
108.4eligible for the assistance provided by sections 268A.06 to 268A.15. When any city,
108.5town, or county singly establishes such a rehabilitation facility, the board shall be
108.6appointed by the chief executive officer of the city or the chair of the governing board
108.7of the county or town. When any combination of cities, towns, counties, or nonprofit
108.8corporations establishes a rehabilitation facility, the chief executive officers of the cities,
108.9nonprofit corporations, and the chairs of the governing bodies of the counties or towns
108.10shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation
108.11facility, the corporation shall appoint the board of directors. Membership on a board
108.12shall be representative of the community served and shall include a person with a
108.13disability. One-third to one-half of the board shall be representative of industry or
108.14business. The remaining members should be representative of lay associations for persons
108.15with a disability, labor, the general public, and education, welfare, medical, and health
108.16professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude
108.17the appointment of elected or appointed public officials or members of the board of
108.18directors of the sponsoring nonprofit corporation to the board, so long as the representation
108.19described above is preserved. If a county establishes an extended employment program
108.20and manages the program with county employees, the governing board shall be the county
108.21board of commissioners, and other provisions of this chapter pertaining to membership on
108.22the governing board do not apply.

108.23    Sec. 28. Minnesota Statutes 2006, section 268A.15, is amended by adding a
108.24subdivision to read:
108.25    Subd. 9. Integrated setting. At the commissioner's discretion, paid work on the
108.26premises of a rehabilitation facility may be certified as an integrated setting after a site
108.27review by the department.

108.28    Sec. 29. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision
108.29to read:
108.30    Subd. 5. Local planning assistance. A regional development commission or,
108.31in regions not served by regional development commissions, a regional organization
108.32selected by the commissioner of employment and economic development, may develop a
108.33program to support planning on behalf of local units of government. The local planning
109.1must be related to issues of regional or statewide significance and may include, but is not
109.2limited to, the following:
109.3    (1) local planning and development assistance, which may include local zoning
109.4ordinances and land use plans;
109.5    (2) community or economic development plans, which may include workforce
109.6development plans, housing development plans and market analysis, JOBZ administration,
109.7grant writing assistance, and grant administration;
109.8    (3) environment and natural resources plans, which may include solid waste
109.9management plans, wastewater management plans, and renewable energy development
109.10plans;
109.11    (4) rural community health services; and
109.12    (5) development of geographical information systems to serve regional needs,
109.13including hardware and software purchases and related labor costs.
109.14    Each regional development commission or organization shall submit to the
109.15commissioner of employment and economic development an annual work program
109.16that outlines the work items for the upcoming year and establishes the relationship of
109.17the work items to development issues of regional or statewide significance. The entity
109.18completing the annual work program and identifying the statewide development issues
109.19shall consider input from the Departments of Employment and Economic Development,
109.20Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as
109.21appropriate to the issues.

109.22    Sec. 30. WORKFORCE ENHANCEMENT FEE.
109.23    If the commissioner of employment and economic development determines that
109.24the need for services under the dislocated worker program substantially exceeds the
109.25resources that will be available for the program, the commissioner may increase the
109.26special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no
109.27more than .12 percent of taxable wages.

109.28    Sec. 31. FEDERAL PROCUREMENT LIAISON.
109.29    The commissioner of employment and economic development must establish and
109.30operate a technology and commercialization unit in the Department of Employment and
109.31Economic Development. Appropriation for this purpose must be used to: coordinate
109.32public and private efforts to procure federal funding for collaborative research and
109.33development projects of primary benefit to small- and medium-sized businesses; promote
109.34contractual relationships between Minnesota businesses who, as recipients of federal
110.1grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess
110.2the research and development capabilities of small- and medium-sized businesses;
110.3undertake referral activities to link Minnesota companies with federal requests for
110.4proposal opportunities; and develop a framework for Minnesota companies to establish
110.5sole-sourcing relationships with federal agencies.
110.6    The commissioner must report to the committees in the house of representatives and
110.7the senate having jurisdiction over bioscience and technology issues on the activities of
110.8the technology and commercialization unit by June 30 of each year.

110.9    Sec. 32. LOCATION OF NORTHERN MINNESOTA INSPECTORS.
110.10    By December 31, 2007, the commissioner of labor and industry must assign three
110.11occupational safety and health inspectors to one or more offices on the Iron Range and one
110.12inspector to an office in Bemidji.

110.13    Sec. 33. ROLE OF STATE LEGISLATURE IN TRADE POLICY.
110.14    (a) It shall be the policy of the state that approval for the state to be bound by any
110.15trade agreement requires the consent of the state legislature.
110.16    (b) Four state legislative contacts must be informed by the governor when any trade
110.17agreement arrives in the governor's office. The four contacts are the majority and minority
110.18leader of the senate or their designated legislators, and the speaker and minority leader in
110.19the house of representatives or their designated legislators. The legislature declares that
110.20the purposes of the state contacts are to:
110.21    (1) serve as the state's official legislative liaisons with the governor and the state
110.22legislature on trade-related matters;
110.23    (2) serve as the legislature's designated recipients from the governor of federal
110.24requests for consent to consultation regarding investment, procurement, services, or other
110.25provisions of international trade agreements, which impinge on state law or regulatory
110.26authority reserved to the states;
110.27    (3) transmit information regarding federal requests from the governor to all
110.28appropriate legislative committees;
110.29    (4) issue a formal request to the Department of Employment and Economic
110.30Development and all appropriate state agencies to provide analysis of all proposed trade
110.31agreements' impact on state legislative authority and the economy of the state;
110.32    (5) inform all members of the legislature on a regular basis about ongoing trade
110.33negotiations and dispute settlement proceedings with implications for the state more
110.34generally;
111.1    (6) communicate the concerns of the legislature to the governor and the United
111.2States trade representative regarding ongoing and proposed trade negotiations; and
111.3    (7) notify the governor and the United States trade representative of the outcome
111.4of any legislative action.
111.5    (c) The following actions are required before the state shall consent to the terms of
111.6a trade agreement:
111.7    (1) when a federal trade request has been received, the governor must submit the
111.8request to the legislative contacts on a day both houses are in session. The request must
111.9contain a copy of the final legal text of the agreement together with:
111.10    (i) a report by the Department of Employment and Economic Development in
111.11consultation with, at a minimum, the following agencies: Department of Administration,
111.12Department of Labor and Industry, Department of Agriculture, Department of Natural
111.13Resources, and the Minnesota Pollution Control Agency. The report shall include an
111.14analysis of how the agreement of the state to the specific provisions of the agreement
111.15will change or affect existing state law;
111.16    (ii) a statement of any administrative action proposed to implement these trade
111.17agreement provisions in the state; and
111.18    (iii) a draft of legislation authorizing the state to sign on to the specific listed
111.19provisions of the agreement in question;
111.20    (2) at least one public hearing, with adequate public notice, shall occur before the
111.21legislature votes on the bill; and
111.22    (3) the bill authorizing the state to sign on to specific listed provisions of an
111.23agreement is enacted into law.
111.24    (d) It is the sense of this legislature that Congress should pass legislation instructing
111.25the United States trade representative to fully and formally consult individual state
111.26legislatures regarding procurement, services, investment, or any other trade agreement
111.27rules that impact state laws or authority before negotiations begin and as they develop,
111.28and to seek consent from state legislatures in addition to governors prior to binding
111.29states to conform their laws to the terms of international commercial agreements. Such
111.30legislation is necessary to ensure the prior informed consent of the state with regard to
111.31future international trade and investment agreements.
111.32    (e) The state attorney general shall notify the United States trade representative of
111.33the policies in paragraph (d) in writing no later than 30 days after its effective date, and
111.34shall provide copies of the notice to the president of the senate, speaker of the house of
111.35representatives, the governor, and the state's congressional delegation.

112.1    Sec. 34. STUDY; SAFE PATIENT HANDLING.
112.2    (a) The commissioner of labor and industry shall study ways to require workers'
112.3compensation insurers to recognize compliance with Minnesota Statutes, section
112.4182.6553, in the workers' compensation premiums of health care and long-term care
112.5facilities. The commissioner shall report by January 15, 2008, the results of the study
112.6to the chairs of the policy committees of the legislature with primary jurisdiction over
112.7workers' compensation issues.
112.8    (b) By January 15, 2008, the commissioner must make recommendations to the
112.9legislature regarding funding sources available to health care facilities for safe patient
112.10handling programs and equipment, including, but not limited to, low interest loans, interest
112.11free loans, and federal, state, or county grants.

112.12    Sec. 35. WORK GROUP; SAFE PATIENT HANDLING.
112.13    The Minnesota State Council on Disability shall convene a work group comprised
112.14of representatives from the Minnesota Medical Association and other organizations
112.15representing clinics, disability advocates, and direct care workers, to do the following:
112.16    (1) assess the current options for and use of safe patient handling equipment in
112.17unlicensed outpatient clinics, physician offices, and dental settings;
112.18    (2) identify barriers to the use of safe patient handling equipment in these settings;
112.19and
112.20    (3) define clinical settings that move patients to determine applicability of the Safe
112.21Patient Handling Act.
112.22    The work group must report to the legislature by January 15, 2008, including
112.23reports to the chairs of the senate and house of representatives committees on workforce
112.24development.

112.25    Sec. 36. EFFECT ON RULES.
112.26    The commissioner of labor and industry shall amend Minnesota Rules, part
112.275200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner
112.28may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting
112.29the amendment required by this section.

112.30    Sec. 37. PUBLIC FACILITIES AUTHORITY FUNDING.
112.31    To the greatest practical extent, projects on the Public Facilities Authority's 2007
112.32intended use plan, the listings for which were based on the Pollution Control Agency's
112.332006 project priority list, shall be carried over to the 2008 intended use plan. Projects that
113.1qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258,
113.2section 21, that could not be certified by the Pollution Control Agency by the applicable
113.3deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court
113.4issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to
113.5obtain the required certification from the Pollution Control Agency.

113.6    Sec. 38. REPEALER.
113.7Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.

113.8ARTICLE 8
113.9LICENSING AND WAGES

113.10    Section 1. [154.465] HAIR BRAIDING.
113.11    Subdivision 1. Registration. Any person engaged in hair braiding solely for
113.12compensation as a profession, except persons licensed as cosmetologists, shall register
113.13with the Minnesota Board of Barber and Cosmetology Examiners in a form determined
113.14by the board.
113.15    Subd. 2. Definition. "Hair braiding" means a natural form of hair manipulation that
113.16results in tension on hair strands by beading, braiding, cornrowing, extending, lacing,
113.17locking, sewing, twisting, weaving, or wrapping human hair, natural fibers, synthetic
113.18fibers, and hair extensions into a variety of shapes, patterns, and textures predominantly by
113.19hand and by only using simple braiding devices, and maintenance thereof. Hair braiding
113.20includes what is commonly known as "African-style hair braiding" or "natural hair care"
113.21but is not limited to any particular cultural, ethnic, racial, or religious forms of hair styles.
113.22Hair braiding includes the making of customized wigs from natural hair, natural fibers,
113.23synthetic fibers, and hair extensions. Hair braiding includes the use of topical agents such
113.24as conditioners, gels, moisturizers, oils, pomades, and shampoos. Hair braiding does not
113.25involve the use of penetrating chemical hair treatments, chemical hair coloring agents,
113.26chemical hair straightening agents, chemical hair joining agents, permanent wave styles,
113.27or chemical hair bleaching agents applied to growing human hair. For purposes of this
113.28section, "simple hair braiding devices" means clips, combs, curlers, curling irons, hairpins,
113.29rollers, scissors, needles, thread, and hair binders including adhesives, if necessary, that
113.30are required solely for hair braiding.
113.31    Subd. 3. Requirements. In order to qualify for initial registration, any person
113.32engaged in hair braiding solely for compensation as a profession shall satisfactorily
113.33complete instruction at either an accredited school or by an individual, except persons
113.34licensed as cosmetologists approved by the board. Instruction includes coursework
114.1covering the topics of health, safety, sanitation, and state laws related to cosmetology not
114.2to exceed 30 hours. The coursework is encouraged to be provided in a foreign language
114.3format and such availability shall be reported to and posted by the Minnesota Board
114.4of Barber and Cosmetology Examiners.
114.5    Subd. 4. Curriculum. An accredited school or an individual approved by the board
114.6desiring to provide the coursework required under subdivision 3 shall have curriculum in
114.7place by January 1, 2008.
114.8EFFECTIVE DATE.This section is effective July 1, 2008, except subdivision 4 is
114.9effective the day following final enactment.

114.10    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:
114.11    Subdivision 1. Examination of records. The commissioner may enter during
114.12reasonable office hours or upon request and inspect the place of business or employment of
114.13any employer of employees working in the state, to examine and inspect books, registers,
114.14payrolls, and other records of any employer that in any way relate to wages, hours, and
114.15other conditions of employment of any employees. The commissioner may transcribe any
114.16or all of the books, registers, payrolls, and other records as the commissioner deems
114.17necessary or appropriate and may question the employees to ascertain compliance with
114.18sections 177.21 to 177.35 177.435. The commissioner may investigate wage claims or
114.19complaints by an employee against an employer if the failure to pay a wage may violate
114.20Minnesota law or an order or rule of the department.

114.21    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:
114.22    Subd. 4. Compliance orders. The commissioner may issue an order requiring an
114.23employer to comply with sections 177.21 to 177.35 177.435, 181.02, 181.03, 181.031,
114.24181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, 181.932,
114.25and 181.9325
, or with any rule promulgated under section 177.28. The department shall
114.26serve the order upon the employer or the employer's authorized representative in person or
114.27by certified mail at the employer's place of business. An employer who wishes to contest
114.28the order must file written notice of objection to the order with the commissioner within
114.2915 calendar days after being served with the order. A contested case proceeding must then
114.30be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
114.31served with the order, the employer fails to file a written notice of objection with the
114.32commissioner, the order becomes a final order of the commissioner.

114.33    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 5, is amended to read:
115.1    Subd. 5. Civil actions. (a) The commissioner may bring an action in the district
115.2court where an employer resides or where the commissioner maintains an office to enforce
115.3or require compliance with orders issued under subdivision 4.
115.4    (b) If the district court determines that a violation of section 181.932 or 181.9325
115.5occurred, the court may order any appropriate relief, including but not limited to
115.6reinstatement, back pay, restoration of lost service credit, if appropriate, compensatory
115.7damages, and the expungement of any adverse records of a state employee or applicant
115.8for state employment who was the subject of the alleged acts of misconduct, and any
115.9appropriate relief as described in section 181.936.

115.10    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:
115.11    Subd. 8. Court actions; suits brought by private parties. An employee may bring
115.12a civil action seeking redress for a violation or violations of sections 177.21 to 177.35
115.13177.44 directly to district court. An employer who pays an employee less than the wages
115.14and overtime compensation to which the employee is entitled under sections 177.21 to
115.15177.35 177.44 is liable to the employee for the full amount of the wages, gratuities, and
115.16overtime compensation, less any amount the employer is able to establish was actually
115.17paid to the employee and for an additional equal amount as liquidated damages. In
115.18addition, in an action under this subdivision the employee may seek damages and other
115.19appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement
115.20between the employee and the employer to work for less than the applicable wage is not
115.21a defense to the action.

115.22    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:
115.23    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may
115.24be filed in the district court of the county wherein a violation or violations of sections
115.25177.21 to 177.35 177.44 are alleged to have been committed, where the respondent resides
115.26or has a principal place of business, or any other court of competent jurisdiction. The
115.27action may be brought by one or more employees.

115.28    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:
115.29    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8,
115.30the court shall order an employer who is found to have committed a violation or violations
115.31of sections 177.21 to 177.35 177.44 to pay to the employee or employees reasonable costs,
115.32disbursements, witness fees, and attorney fees.

116.1    Sec. 8. Minnesota Statutes 2006, section 177.27, is amended by adding a subdivision
116.2to read:
116.3    Subd. 11. Investigation of certain complaints. (a) The commissioner shall conduct
116.4an investigation of any matter that alleges a violation of sections 181.932 and 181.9325.
116.5The identity of the person providing the information that initiated the investigation shall
116.6be classified as private data, pursuant to section 13.02, subdivision 12, except that the
116.7identity may be disclosed to a law enforcement agency that is conducting a criminal
116.8investigation of the matter.
116.9    (b) For each investigation completed, if the commissioner determines that there is
116.10reasonable cause to believe that an employer has violated section 181.932 or 181.9325,
116.11the commissioner shall report the nature and details of the alleged violation to the head
116.12of the employing agency or the appropriate appointing authority. If appropriate, the
116.13commissioner shall report this information to the attorney general, the policy committees
116.14of the house of representatives and senate having jurisdiction over the subject involved,
116.15and to any other authority that the commissioner deems appropriate. In any case
116.16in which the commissioner submits a report of alleged violations to the head of the
116.17employing agency or appropriate appointing authority, that individual shall report to the
116.18commissioner with respect to any action taken by the individual regarding the activity, the
116.19first report being transmitted no later than 30 days after the date of the auditor's report,
116.20and monthly thereafter until final action has been taken.
116.21    (c) This subdivision shall not limit any authority conferred upon the attorney general
116.22or other department or agency of government to investigate and prosecute any matter.
116.23    (d) The commissioner shall have all the powers and authority described in this
116.24section to conduct investigations pursuant to this subdivision.

116.25    Sec. 9. [177.275] INVESTIGATION PROCEDURE.
116.26    (a) The commissioner shall initiate an investigation of a written complaint of
116.27reprisal or retaliation in public employment as prohibited by section 181.932 or 181.9325
116.28within ten working days of its submission. The commissioner shall complete findings
116.29of the investigation within 60 working days thereafter, and shall provide a copy of the
116.30findings to the complaining employee or applicant for employment and to the appropriate
116.31supervisor, manager, employee, or appointing authority. When the allegations contained
116.32in a complaint of reprisal or retaliation are the same as, or similar to, those contained in
116.33another appeal, the commissioner may consolidate the appeals into the most appropriate
116.34format. In these cases, the time limits described in this subdivision shall not apply.
117.1    (b) If the commissioner finds that the supervisor, manager, employee, or appointing
117.2power retaliated against the complainant for engaging in protected whistle-blower
117.3activities, the commissioner may issue a compliance order under section 177.27,
117.4subdivision 4.
117.5    (c) In order for the governor and the legislature to determine the need to continue
117.6or modify state personnel procedures as they relate to the investigations of reprisals or
117.7retaliation for the disclosure of information by public employees, the commissioner, by
117.8June 30 of each year, shall submit a report to the governor and the legislature regarding
117.9complaints filed, hearings held, and legal actions taken under this section.

117.10    Sec. 10. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:
117.11    Subdivision 1. General authority. The commissioner may adopt rules, including
117.12definitions of terms, to carry out the purposes of sections 177.21 to 177.35 177.44, to
117.13prevent the circumvention or evasion of those sections, and to safeguard the minimum
117.14wage and overtime rates established by sections 177.24 and 177.25.

117.15    Sec. 11. Minnesota Statutes 2006, section 177.30, is amended to read:
117.16177.30 KEEPING RECORDS; PENALTY.
117.17    Every employer subject to sections 177.21 to 177.35 177.44 must make and keep a
117.18record of:
117.19    (1) the name, address, and occupation of each employee;
117.20    (2) the rate of pay, and the amount paid each pay period to each employee;
117.21    (3) the hours worked each day and each workweek by the employee; and
117.22    (4) for each employer subject to sections 177.41 to 177.44, and while performing
117.23work on public works projects funded in whole or in part with state funds, the prevailing
117.24wage master job classification of each employee working on the project for each hour
117.25worked; and
117.26    (4) (5) other information the commissioner finds necessary and appropriate to
117.27enforce sections 177.21 to 177.35. The records must be kept for three years in or near the
117.28premises where an employee works except each employer subject to sections 177.41 to
117.29177.44, and while performing work on public works projects funded in whole or in part
117.30with state funds, the records must be kept for three years after the contracting authority
117.31has made final payment on the public works project.
117.32    The commissioner may fine an employer up to $1,000 for each failure to maintain
117.33records as required by this section. This penalty is in addition to any penalties provided
117.34under section 177.32, subdivision 1. In determining the amount of a civil penalty under
118.1this subdivision, the appropriateness of such penalty to the size of the employer's business
118.2and the gravity of the violation shall be considered.

118.3    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:
118.4    Subd. 3. Contract requirements. The contract must specifically state the prevailing
118.5wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also
118.6provide that the contracting authority may demand and the contractor or subcontractor
118.7shall furnish to the contracting authority, copies of any and all payrolls, and that the
118.8contracting authority may examine all records relating to wages paid laborers or mechanics
118.9on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision
118.10are in addition to any other requirements or authority set forth in other laws or rules for
118.11work to which sections 177.41 to 177.44 apply.

118.12    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:
118.13    Subd. 4. Determination by commissioner; posting; petition for reconsideration.
118.14    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all
118.15trades and occupations required in any project must be ascertained before the state asks for
118.16bids. The commissioner of labor and industry shall investigate as necessary to ascertain
118.17the information. The commissioner Each contractor and subcontractor performing work
118.18on a public project shall keep the information posted on the project in at least one
118.19conspicuous place for the information of the employees working on the project. A person
118.20aggrieved by a final determination of the commissioner may petition the commissioner for
118.21reconsideration of findings. A person aggrieved by a decision of the commissioner after
118.22reconsideration may, within 20 days after the decision, petition the commissioner for a
118.23public hearing in the manner of a contested case under sections 14.57 to 14.61.

118.24    Sec. 14. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:
118.25    Subd. 6. Examination of records; investigation by the department. The
118.26Department of Labor and Industry shall enforce this section. The department may
118.27demand, and the contractor and subcontractor shall furnish to the department, copies
118.28of any or all payrolls. The department may examine all records relating to wages paid
118.29laborers or mechanics on work to which sections 177.41 to 177.44 apply. The department
118.30shall employ at least three investigators to perform on-site project reviews, receive and
118.31investigate complaints of violations of this section, and conduct training and outreach to
118.32contractors and contracting authorities for public works projects financed in whole or
118.33in part with state funds.

119.1    Sec. 15. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision
119.2to read:
119.3    Subd. 6a. Prevailing wage violations. Upon issuing a compliance order to an
119.4employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to
119.5177.44, the commissioner shall issue a withholding order to the contracting authority
119.6ordering the contracting authority to withhold payment of sufficient sum to the prime
119.7or general contractor on the project to satisfy the back wages assessed or otherwise
119.8cure the violation, and the contracting authority must withhold the sum ordered until
119.9the compliance order has become a final order of the commissioner and has been fully
119.10paid or otherwise resolved by the employer.
119.11    During an investigation of a violation of sections 177.41 to 177.44 which the
119.12commissioner reasonably determines is likely to result in the finding of a violation of
119.13sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section
119.14177.27, subdivision 4, the commissioner may notify the contracting authority of the
119.15determination and the amount expected to be assessed and the contracting authority shall
119.16give the commissioner 90 days' prior notice of the date the contracting authority intends to
119.17make final payment.

119.18    Sec. 16. [181.723] DEFINITIONS.
119.19    Subdivision 1. Scope. The definitions in this subdivision apply to this section.
119.20    (a) "Person" means any individual, limited liability corporation, corporation,
119.21partnership, incorporated or unincorporated association, sole proprietorship, joint stock
119.22company, or any other legal or commercial entity.
119.23    (b) "Department" means the Department of Labor and Industry.
119.24    (c) "Commissioner" means the commissioner of labor and industry or a duly
119.25designated representative of the commissioner who is either an employee of the
119.26Department of Labor and Industry or person working under contract with the Department
119.27of Labor and Industry.
119.28    (d) "Individual" means a human being.
119.29    (e) "Day" means calendar day unless otherwise provided.
119.30    (f) "Knowingly" means knew or could have known with the exercise of reasonable
119.31diligence.
119.32    (g) "Document" or "documents" includes papers; books; records; memoranda; data;
119.33contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings;
119.34records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars
119.35maintained in any form or manner.
120.1    Subd. 2. Limited application. This section only applies to individuals performing
120.2public or private sector commercial or residential building construction or improvement
120.3services.
120.4    Subd. 3. Employee-employer relationship. Except as provided in subdivision
120.54, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an
120.6individual who performs services for a person that are in the course of the person's trade,
120.7business, profession, or occupation is an employee of that person and that person is an
120.8employer of the individual.
120.9    Subd. 4. Independent contractor. An individual is an independent contractor and
120.10not an employee of the person for whom the individual is performing services in the course
120.11of the person's trade, business, profession, or occupation only if (a) the individual holds
120.12a current independent contractor exemption certificate issued by the commissioner; and
120.13(b) the individual is performing services for the person under the independent contractor
120.14exemption certificate as provided in subdivision 6. The requirements in clauses (a) and (b)
120.15must be met in order to qualify as an independent contractor and not as an employee of
120.16the person for whom the individual is performing services in the course of the person's
120.17trade, business, profession, or occupation.
120.18    Subd. 5. Application. To obtain an independent contractor exemption certificate,
120.19the individual must submit, in the manner prescribed by the commissioner, a complete
120.20application and the certificate fee required under subdivision 14.
120.21    (a) A complete application must include all of the following information:
120.22    (1) the individual's full name;
120.23    (2) the individual's residence address and telephone number;
120.24    (3) the individual's business name, address, and telephone number;
120.25    (4) the services for which the individual is seeking an independent contractor
120.26exemption certificate;
120.27    (5) the individual's Social Security number;
120.28    (6) the individual's or the individual's business federal employer identification
120.29number, if a number has been issued to the individual or the individual's business;
120.30    (7) any information or documentation that the commissioner requires by rule that
120.31will assist the department in determining whether to grant or deny the individual's
120.32application; and
120.33    (8) The individual's sworn statement that the individual meets all of the following
120.34conditions:
120.35    (i) the individual maintains a separate business with the individual's own office,
120.36equipment, materials, and other facilities;
121.1    (ii) the individual holds or has applied for a federal employer identification number
121.2or has filed business or self-employment income tax returns with the federal Internal
121.3Revenue Service if the person has performed services in the previous year for which the
121.4individual is seeking the independent contractor exemption certificate;
121.5    (iii) the individual operates under contracts to perform specific services for specific
121.6amounts of money and under which the individual controls the means of performing the
121.7services;
121.8    (iv) the individual incurs the main expenses related to the service that the individual
121.9performs under contract;
121.10    (v) the individual is responsible for the satisfactory completion of services that the
121.11individual contracts to perform and is liable for a failure to complete the service;
121.12    (vi) the individual receives compensation for service performed under a contract on
121.13a commission or per-job or competitive bid basis and not on any other basis;
121.14    (vii) the individual may realize a profit or suffer a loss under contracts to perform
121.15service;
121.16    (viii) the individual has continuing or recurring business liabilities or obligations; and
121.17    (ix) the success or failure of the individual's business depends on the relationship of
121.18business receipts to expenditures.
121.19    (b) Within 30 days of receiving a complete application and the certificate fee, the
121.20commissioner must either grant or deny the application. The commissioner may deny
121.21an application for an independent contractor exemption certificate if the individual has
121.22not submitted a complete application and certificate fee or if the individual does not
121.23meet all of the conditions for holding the independent contractor exemption certificate.
121.24The commissioner may revoke an independent contractor exemption certificate if the
121.25commissioner determines that the individual no longer meets all of the conditions for
121.26holding the independent contractor exemption certificate, commits any of the actions
121.27set out in subdivision 7, or fails to cooperate with a department investigation into the
121.28continued validity of the individual's certificate. Once issued, an independent contractor
121.29exemption certificate remains in effect for two years unless:
121.30    (1) revoked by the commissioner; or
121.31    (2) canceled by the individual.
121.32    (c) If the department denies an individual's original or renewal application for
121.33an independent contractor exemption certificate or revokes an independent contractor
121.34exemption certificate, the commissioner shall issue to the individual an order denying or
121.35revoking the certificate. The commissioner may issue an administrative penalty order to
121.36an individual or person who commits any of the actions set out in subdivision 7.
122.1    (d) An individual or person to whom the commissioner issues an order under
122.2paragraph (c) shall have 30 days after service of the order to request a hearing. The request
122.3for hearing must be in writing and must be served on or faxed to the commissioner at the
122.4address or fax number specified in the order by the 30th day after service of the order.
122.5If the individual does not request a hearing or if the individual's request for a hearing is
122.6not served on or faxed to the commissioner by the 30th day after service of the order, the
122.7order shall become a final order of the commissioner and will not be subject to review
122.8by any court or agency. The date on which a request for hearing is served by mail shall
122.9be the postmark date on the envelope in which the request for hearing is mailed. If the
122.10individual serves or faxes a timely request for hearing, the hearing shall be a contested
122.11case hearing and shall be held in accordance with chapter 14.
122.12    Subd. 6. Qualifications for exemption certificate. An individual is performing
122.13services for a person under an independent contractor exemption certificate if:
122.14    (a) the individual is performing services listed on the individual's independent
122.15contractor exemption certificate;
122.16    (b) at the time the individual is performing services listed on the individual's
122.17independent contractor exemption certificate, the individual meets all of the following
122.18conditions:
122.19    (1) the individual maintains a separate business with the individual's own office,
122.20equipment, materials, and other facilities;
122.21    (2) the individual holds or has applied for a federal employer identification number
122.22or has filed business or self-employment income tax returns with the federal Internal
122.23Revenue Service if the individual performed services in the previous year for which the
122.24individual has the independent contractor exemption certificate;
122.25    (3) the individual is operating under contract to perform the specific services for
122.26the person for specific amounts of money and under which the individual controls the
122.27means of performing the services;
122.28    (4) the individual is incurring the main expenses related to the services that the
122.29individual is performing for the person under the contract;
122.30    (5) the individual is responsible for the satisfactory completion of the services
122.31that the individual has contracted to perform for the person and is liable for a failure
122.32to complete the services;
122.33    (6) the individual receives compensation from the person for the services performed
122.34under the contract on a commission or per-job or competitive bid basis and not on any
122.35other basis;
123.1    (7) the individual may realize a profit or suffers a loss under the contract to perform
123.2services for the person;
123.3    (8) the individual has continuing or recurring business liabilities or obligations; and
123.4    (9) the success or failure of the individual's business depends on the relationship of
123.5business receipts to expenditures.
123.6    Subd. 7. Prohibited activities. (a) An individual shall not:
123.7    (1) perform work as an independent contractor without first obtaining from the
123.8department an independent contractor exemption certificate;
123.9    (2) perform work as an independent contractor when the department has denied or
123.10revoked the individual's independent contractor exemption certificate;
123.11    (3) transfer to another individual or allow another individual to use the individual's
123.12independent contractor exemption certificate;
123.13    (4) alter or falsify an independent contractor exemption certificate;
123.14    (5) misrepresent the individual's status as an independent contractor; or
123.15    (6) make a false material statement, representation, or certification; omit material
123.16information; or alter, conceal, or fail to file a document required by this section or any rule
123.17promulgated by the commissioner under rulemaking authority set out in this section.
123.18    (b) A person for whom an individual is performing services shall not:
123.19    (1) require an individual through coercion, misrepresentation, or fraudulent means to
123.20adopt independent contractor status;
123.21    (2) knowingly misrepresent that an individual who has not been issued an
123.22independent contractor exemption certificate or is not performing services for the person
123.23under an independent contractor exemption certificate is an independent contractor; or
123.24    (3) make a false material statement, representation, or certification; omit material
123.25information; or alter, conceal, or fail to file a document required by this section or any rule
123.26promulgated by the commissioner under rulemaking authority set out in this section.
123.27    (c) A person for whom an individual is performing services must obtain a copy of the
123.28individual's independent contractor exemption certificate before services may commence.
123.29A copy of the independent contractor exemption certificate must be retained for five years
123.30from the date of receipt by the person for whom an individual is performing services.
123.31    Subd. 8. Remedies. (a) An individual or person who violates any provision of
123.32subdivision 7 is subject to a penalty to be assessed by the department of up to $1,000 for
123.33each violation. The department shall deposit penalties in the assigned risk safety account.
123.34    (b) An individual who has been injured by a violation of subdivision 7, paragraph
123.35(b), may bring a civil action for damages against the violator. If the individual is
123.36determined to be an employee or an independent contractor considered an employee of
124.1the violator of subdivision 7, paragraph (b), the employee's representative as defined in
124.2section 179.01, subdivision 5, may bring a civil action for damages against the violator
124.3on behalf of the employee. In addition to damages the court may award attorney fees,
124.4costs, and disbursements to a recovery under this provision.
124.5    (c) Any court finding that a violation of subdivision 7 has occurred shall
124.6transmit a copy of its findings of fact and conclusion of law to the commissioner. The
124.7commissioner shall report the findings to the relevant state and federal agencies, including
124.8the commissioner of commerce, the commissioner of employment and economic
124.9development, the commissioner of revenue, the federal Internal Revenue Service, and the
124.10United States Department of Labor.
124.11    Subd. 9. Commissioner's powers. (a) In order to carry out the purposes of this
124.12section, the commissioner may:
124.13    (1) administer oaths and affirmations, certify official acts, interview, question, take
124.14oral or written statements, and take depositions;
124.15    (2) request, examine, take possession of, photograph, record, and copy any
124.16documents, equipment, or materials;
124.17    (3) at a time and place indicated by the commissioner, request persons to appear
124.18before the commissioner to give testimony and produce documents, equipment, or
124.19materials;
124.20    (4) issue subpoenas to compel persons to appear before the commissioner to give
124.21testimony and produce documents, equipment, or materials; and
124.22    (5) with or without notice, enter without delay upon any property, public or private,
124.23for the purpose of taking any action authorized under this subdivision or the applicable
124.24law, including obtaining information or conducting inspections or investigations.
124.25    (b) Persons requested by the commissioner to give testimony or produce documents,
124.26equipment, or materials shall respond within the time and in the manner specified by the
124.27commissioner. If no time to respond is specified in the request, then a response shall be
124.28submitted within 30 days of the commissioner's service of the request.
124.29    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property
124.30owner's representative, or lessee's representative to permit the commissioner's entry onto
124.31property as provided in paragraph (a), the commissioner may apply for an administrative
124.32inspection order in the Ramsey County District Court or, at the commissioner's discretion,
124.33in the district court in the county in which the property is located. The commissioner may
124.34anticipate that a property owner or lessee will refuse entry if the property owner, lessee,
124.35property owner's representative, or lessee's representative has refused to permit entry on a
124.36prior occasion or has informed the commissioner that entry will be refused. Upon showing
125.1of administrative probable cause by the commissioner, the district court shall issue an
125.2administrative inspection order that compels the property owner or lessee to permit the
125.3commissioner to enter the property for the purposes specified in paragraph (a).
125.4    (d) Upon the application of the commissioner, a district court shall treat the failure of
125.5any person to obey a subpoena lawfully issued by the commissioner under this subdivision
125.6as a contempt of court.
125.7    Subd. 10. Notice requirements. Unless otherwise specified, service of a document
125.8on a person under this section or section 326B.083 may be by mail, by personal service,
125.9or in accordance with any consent to service filed with the commissioner. Service by
125.10mail shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550,
125.11subpart 2. Personal service shall be accomplished in the manner provided in Minnesota
125.12Rules, part 1400.5550, subpart 3.
125.13    Subd. 11. Facsimile; timely service. When this section or section 326B.083
125.14permits a request for reconsideration or request for hearing to be served by facsimile on
125.15the commissioner, the facsimile shall not exceed 15 pages in length. The request shall be
125.16considered timely served if the facsimile is received by the commissioner, at the facsimile
125.17number identified by the commissioner in the order or notice of violation, no later than
125.184:30 p.m. central time on the last day permitted for faxing the request. Where the quality
125.19or authenticity of the faxed request is at issue, the commissioner may require the original
125.20request to be filed. Where the commissioner has not identified quality or authenticity
125.21of the faxed request as an issue and the request has been faxed in accordance with this
125.22subdivision, the person faxing the request does not need to file the original request with
125.23the commissioner.
125.24    Subd. 12. Time period computation. In computing any period of time prescribed
125.25or allowed by this section, the day of the act, event, or default from which the designated
125.26period of time begins to run shall not be included. The last day of the period so computed
125.27shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the
125.28period runs until the next day which is not a Saturday, Sunday, or legal holiday.
125.29    Subd. 13. Rulemaking. The commissioner may, in consultation with the
125.30commissioner of revenue and the commissioner of employment and economic
125.31development, adopt, amend, suspend, and repeal rules under the rulemaking provisions
125.32of chapter 14 that relate to the commissioner's responsibilities under this section. This
125.33subdivision is effective the day following final enactment.
125.34    Subd. 14. Fee. The certificate fee for the original application and for the renewal
125.35of an independent contractor exemption certificate shall be $150. If an individual
125.36simultaneously submits an application for both an independent contractor exemption
126.1certificate under this section and a license under section 326.98, the application fee for
126.2the independent contractor exemption certificate shall be reduced to $100. Fees collected
126.3under this subdivision are deposited in the general fund.
126.4    Subd. 15. Notice to commissioner; review by commissioner of revenue. When
126.5the commissioner has reason to believe that an individual who holds a certificate has failed
126.6to maintain all the conditions required by subdivision 3 or is not performing services for a
126.7person under the independent contractor exemption certificate, the commissioner must
126.8notify the commissioner of revenue and the commissioner of employment and economic
126.9development. Upon receipt of notification from the commissioner that an individual who
126.10holds a certificate has failed to maintain all the conditions required by subdivision 3
126.11or is not performing services for a person under the independent contractor exemption
126.12certificate, the commissioner of revenue must review the information returns required
126.13under section 6041A of the Internal Revenue Code. The commissioner of revenue shall
126.14also review the submitted certification that is applicable to returns audited or investigated
126.15under section 289A.35.
126.16    Subd. 16. Data classified. Certifications issued by the commissioner are public
126.17data. Applications and required documentation submitted by an individual is private
126.18data on an individual. Upon request of the Department of Revenue or the Department
126.19of Employment and Economic Development, the commissioner may release to the
126.20Department of Revenue and the Department of Employment and Economic Development
126.21applications and required documentation submitted by individuals and investigative data
126.22that relates to the department's issuance or denial of applications and the department's
126.23revocations of certificates. Except as otherwise provided by this subdivision, the
126.24department's investigative data shall be classified as provided in chapter 13.
126.25EFFECTIVE DATE.This section is effective July 1, 2008.

126.26    Sec. 17. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:
126.27    Subdivision 1. Prohibited action. An employer shall not discharge, discipline,
126.28threaten, otherwise discriminate against, or penalize an employee regarding the employee's
126.29compensation, terms, conditions, location, or privileges of employment because:
126.30    (a) the employee, or a person acting on behalf of an employee, in good faith, reports
126.31a violation or suspected violation of any federal or state law or rule adopted pursuant
126.32to law to an employer or to any governmental body or law enforcement official and
126.33the alleged violation involves a matter of public concern, including, but not limited to,
126.34violations that create a specific danger to the public health, safety, or environment;
127.1    (b) the employee is requested by a public body or office to participate in an
127.2investigation, hearing, inquiry;
127.3    (c) the employee refuses an employer's order to perform an action that the employee
127.4has an objective basis in fact to believe violates any state or federal law or rule or
127.5regulation adopted pursuant to law which violation the employee reasonably believes
127.6is a matter of public concern, including, but not limited to, violations that create a
127.7specific danger to the public health, safety, or environment, and the employee informs the
127.8employer that the order is being refused for that reason; or
127.9    (d) the employee, in good faith, reports a situation in which the quality of health care
127.10services provided by a health care facility, organization, or health care provider violates a
127.11standard established by federal or state law or a professionally recognized national clinical
127.12or ethical standard and potentially places the public at risk of harm.;
127.13    (e) a public employee refuses to alter, dilute, or suppress the objective representation
127.14or communication of scientific or technical data or findings, including but not limited to,
127.15findings of economic or environmental impact, or findings indicating consequences for
127.16the public's health or safety; or
127.17    (f) a public employee communicates the findings of a scientific or technical study
127.18that the employee, in good faith, believes to be truthful and accurate, including reports to a
127.19governmental body or law enforcement official.
127.20The disclosures protected pursuant to this section do not authorize the disclosure of trade
127.21secret information otherwise protected by law.

127.22    Sec. 18. [181.9325] USE OF AUTHORITY TO INFLUENCE OR INTERFERE
127.23WITH DISCLOSURE OF INFORMATION.
127.24    (a) A public employer may not directly or indirectly use or attempt to use the
127.25employer's official authority or influence for the purpose of intimidating, threatening,
127.26coercing, or attempting to intimidate, threaten, or coerce any person for the purpose of
127.27interfering with the rights described in section 181.932, or for the purpose of persuading
127.28the person to waive or disclaim any other legal rights related to the person's employment.
127.29    (b) For purposes of this section, "use of official authority or influence" includes:
127.30promising to confer, or conferring, any benefit; effecting, or threatening to effect, any
127.31reprisal; or taking, or directing others to take, or recommending, processing, or approving,
127.32any personnel action, including but not limited to appointment, promotion, transfer,
127.33assignment, performance evaluation, suspension, or other disciplinary action.

128.1    Sec. 19. Minnesota Statutes 2006, section 181.935, is amended to read:
128.2181.935 INDIVIDUAL REMEDIES; PENALTY.
128.3    (a) In addition to any remedies otherwise provided by law, an employee injured
128.4by a violation of section 181.932 or 181.9325 may bring a civil action to recover any
128.5and all damages recoverable at law, together with costs and disbursements, including
128.6reasonable attorney's fees, and may receive such injunctive and other equitable relief as
128.7determined by the court.
128.8    (b) An employer who failed to notify, as required under section 181.933 or 181.934,
128.9an employee injured by a violation of section 181.932 is subject to a civil penalty of $25
128.10per day per injured employee not to exceed $750 per injured employee.

128.11    Sec. 20. [181.936] REPRISALS FOR DISCLOSURE OF IMPROPER
128.12GOVERNMENTAL ACTIVITIES; COMPLAINT PROCEDURE; PENALTIES.
128.13    (a) A public employee or applicant for public employment who files a written
128.14complaint with the employee's or applicant's supervisor, manager, or the appointing
128.15power alleging actual or attempted acts of reprisal, retaliation, threats, coercion, or
128.16similar improper acts prohibited by section 181.9325, may also file a copy of the written
128.17complaint with the commissioner of labor and industry, together with a sworn statement
128.18that the contents of the written complaint are true, or are believed by the affiant to be true,
128.19under penalty of perjury. The complaint filed with the commissioner shall be filed within
128.2012 months of the most recent act of reprisal complained about.
128.21    (b) Any person who intentionally engages in acts of reprisal, retaliation, threats,
128.22coercion, or similar acts against a public employee or applicant for public employment
128.23for having made a protected disclosure under section 181.932, is subject to a fine not to
128.24exceed $10,000 and imprisonment in the county jail for a period not to exceed one year.
128.25    (c) In addition to all other penalties provided by law, any person who intentionally
128.26engages in acts of reprisal, retaliation, threats, coercion, or similar acts against a public
128.27employee or applicant for public employment for having made a protected disclosure shall
128.28be liable in an action for damages brought against the person by the injured party. Punitive
128.29damages may be awarded by the court where the acts of the offending party are proven to
128.30be malicious. Where liability has been established, the injured party shall also be entitled
128.31to reasonable attorney fees as provided by law. However, any action for damages shall not
128.32be available to the injured party unless the injured party has first filed a complaint with the
128.33commissioner of labor and industry under paragraph (a), and the department has issued, or
128.34failed to issue, findings under section 177.275.
129.1    (d) This section is not intended to prevent an appointing power, manager, or
129.2supervisor from taking, directing others to take, recommending, or approving any
129.3personnel action or from taking or failing to take a personnel action with respect to any
129.4public employee or applicant for public employment if the appointing power, manager, or
129.5supervisor reasonably believes any action or inaction is justified on the basis of evidence
129.6separate and apart from the fact that the person has made a protected disclosure under
129.7section 181.932.
129.8    (e) In any civil action or administrative proceeding, once it has been demonstrated
129.9by a preponderance of evidence that an activity protected by sections 177.27, 177.275,
129.10181.932, and 181.9325 was a contributing factor in the alleged retaliation against a former,
129.11current, or prospective employee, the burden of proof shall be on the supervisor, manager,
129.12or appointing power to demonstrate by clear and convincing evidence that the alleged
129.13action would have occurred for legitimate, independent reasons even if the employee had
129.14not engaged in protected disclosures or refused an illegal order. If the supervisor, manager,
129.15or appointing power fails to meet this burden of proof in an adverse action against the
129.16employee in any administrative review, challenge, or adjudication in which retaliation
129.17has been demonstrated to be a contributing factor, the employee shall have a complete
129.18affirmative defense in the adverse action.
129.19    (f) Nothing in sections 177.27, 177.275, 181.932, and 181.9325 shall be deemed to
129.20diminish the rights, privileges, or remedies of any employee under any other federal or
129.21state law or under any employment contract or collective bargaining agreement.

129.22    Sec. 21. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:
129.23    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who,
129.24during some part of the period of the sales representative agreement:
129.25    (1) is a resident of Minnesota or maintains that person's principal place of business
129.26in Minnesota; or
129.27    (2) whose geographical territory specified in the sales representative agreement
129.28includes part or all of Minnesota.
129.29    (b) To be effective, any demand for arbitration under subdivision 5 must be made
129.30in writing and delivered to the principal on or before one year after the effective date of
129.31the termination of the agreement.
129.32    (c) A provision in any contract between a sales representative dealing in plumbing
129.33equipment or supplies and a principal purporting to waive any provision of this act,
129.34whether by express waiver or by a provision stipulating that the contract is subject to the
129.35laws of another state, shall be void.

130.1    Sec. 22. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:
130.2    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by
130.3rule, prescribe minimum standards which shall be uniform, and which standards shall
130.4thereafter be effective for all new plumbing installations, including additions, extensions,
130.5alterations, and replacements connected with any water or sewage disposal system owned
130.6or operated by or for any municipality, institution, factory, office building, hotel, apartment
130.7building, or any other place of business regardless of location or the population of the
130.8city or town in which located. Notwithstanding the provisions of Minnesota Rules, part
130.94715.3130, as they apply to review of plans and specifications, the commissioner may
130.10allow plumbing construction, alteration, or extension to proceed without approval of the
130.11plans or specifications by the commissioner.
130.12    Except for powers granted to the Plumbing Board, the commissioner of labor and
130.13industry shall administer the provisions of sections 326.37 to 326.45 and for such purposes
130.14may employ plumbing inspectors and other assistants.

130.15    Sec. 23. [326.372] PLUMBING BOARD.
130.16    Subdivision 1. Composition. (a) The Plumbing Board shall consist of 12 voting
130.17members who must be residents of the state, appointed by the governor, and confirmed
130.18by the senate. The commissioner of labor and industry or the commissioner's designee
130.19shall be a voting member. The first appointed board members shall serve an initial term
130.20of four years, except where designated otherwise. The governor shall then reappoint the
130.21current members or appoint replacement members, all or in part, to subsequent three-year
130.22terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies
130.23occurring with less than six months time remaining in the term shall be filled for the
130.24existing term and the following three-year term. Of the 11 appointed members, the
130.25composition shall be as follows:
130.26    (1) two members shall be municipal plumbing inspectors, one from the seven-county
130.27metro area and one from greater Minnesota;
130.28    (2) one member shall be a licensed mechanical engineer;
130.29    (3) two members serving an initial term of three years shall be plumbing contractors
130.30or the representative of the contractor, engaged in a commercial scope of plumbing
130.31contracting, one from the metropolitan area and one from greater Minnesota;
130.32    (4) two members serving an initial term of three years shall be plumbing contractors
130.33or their representatives, engaged in the residential scope of plumbing contracting, one
130.34from the metro area and one from greater Minnesota;
131.1    (5) two members serving an initial term of two years shall be plumbing
131.2journeypersons engaged in a commercial scope of plumbing systems installation, one
131.3from the metro area and one from greater Minnesota; and
131.4    (6) two members serving an initial term of two years shall be plumbing
131.5journeypersons engaged in a residential scope of plumbing systems installation, one from
131.6the metro area and one from greater Minnesota.
131.7    (b) Except for the licensed mechanical engineer, all persons appointed to the
131.8council must possess a current Minnesota plumbing license and maintain the license for
131.9the duration of their term.
131.10    Subd. 2. Powers. (a) The board shall have the power to:
131.11    (1) elect its chair;
131.12    (2) specify the plumbing code that must be followed in this state;
131.13    (3) maintain a review process to make determinations regarding any complaints,
131.14code amendments, code compliance, and code clarifications filed with the board;
131.15    (4) adopt rules necessary for the regulation and licensing of contractors,
131.16journeypersons, apprentices, and other persons engaged in the design, installation, and
131.17alteration of plumbing systems that would include the issuing, renewing, revoking,
131.18refusing to renew, and suspending a plumbing license, except for persons licensed under
131.19sections 326.02 to 326.15;
131.20    (5) adopt rules necessary for continuing education for individuals regulated and
131.21licensed under this section;
131.22    (6) make recommendations to the commissioner regarding educational requirements
131.23for plumbing inspectors; and
131.24    (7) pay expenses deemed necessary in the performance of board duties, including:
131.25    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18,
131.26subdivision 2; and
131.27    (ii) per diem and expenses for its members as provided in section 15.0575,
131.28subdivision 3.
131.29    (b) Requests under the review process in paragraph (a), clause (3), may originate
131.30with the municipal inspectors, the plumbing contractors or their employees, and other
131.31persons engaged in the design, installation, and alteration of plumbing systems. The board
131.32shall make its findings known to all parties and the commissioner of labor and industry
131.33within the time period specified by the board.
131.34    Subd. 3. Fees and finances. The board shall submit an annual budget to the
131.35commissioner of labor and industry. The commissioner shall collect fees under section
131.36326.42 necessary for the operation and continuance of the board. The commissioner is
132.1responsible for the enforcement of the codes and licensing requirements determined by
132.2the board. The board shall set the fees for licenses and certification under this section.
132.3The commissioner of finance shall make a quarterly certification of the amount necessary
132.4to pay expenses required for operation of the board under subdivision 2, paragraph (a),
132.5clause (6). The certified amount is appropriated to the board for those purposes from
132.6the fees collected under section 326.42.

132.7    Sec. 24. Minnesota Statutes 2006, section 326.38, is amended to read:
132.8326.38 LOCAL REGULATIONS.
132.9    Any city having a system of waterworks or sewerage, or any town in which reside
132.10over 5,000 people exclusive of any statutory cities located therein, or the metropolitan
132.11airports commission, may, by ordinance, adopt local regulations providing for plumbing
132.12permits, bonds, approval of plans, and inspections of plumbing, which regulations are
132.13not in conflict with the plumbing standards on the same subject prescribed by the state
132.14commissioner of health Plumbing Board. No city or such town shall prohibit plumbers
132.15licensed by the state commissioner of health labor and industry from engaging in or
132.16working at the business, except cities and statutory cities which, prior to April 21, 1933,
132.17by ordinance required the licensing of plumbers. No city or town may require a license
132.18for persons performing building sewer or water service installation who have completed
132.19pipe laying training as prescribed by the commissioner of labor and industry. Any city
132.20by ordinance may prescribe regulations, reasonable standards, and inspections and grant
132.21permits to any person, firm, or corporation engaged in the business of installing water
132.22softeners, who is not licensed as a master plumber or journeyman plumber by the state
132.23commissioner of health labor and industry, to connect water softening and water filtering
132.24equipment to private residence water distribution systems, where provision has been
132.25previously made therefor and openings left for that purpose or by use of cold water
132.26connections to a domestic water heater; where it is not necessary to rearrange, make any
132.27extension or alteration of, or addition to any pipe, fixture or plumbing connected with
132.28the water system except to connect the water softener, and provided the connections so
132.29made comply with minimum standards prescribed by the state commissioner of health
132.30Plumbing Board.

132.31    Sec. 25. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:
132.32    Subdivision 1. License required; master and journeyman plumbers. In any city
132.33now or hereafter having 5,000 or more population, according to the last federal census,
132.34and having a system of waterworks or sewerage, (a) No person, firm, or corporation shall
133.1engage in or work at the business of a master plumber or, restricted master plumber,
133.2journeyman plumber, and restricted journeyman plumber unless licensed to do so by the
133.3state commissioner of health labor and industry. A license is not required for persons
133.4performing building sewer or water service installation who have completed pipe laying
133.5training as prescribed by the commissioner of labor and industry. A master plumber may
133.6also work as a journeyman plumber, a restricted journeyman plumber, and a restricted
133.7master plumber. A journeyman plumber may also work as a restricted journeyman
133.8plumber. Anyone not so licensed may do plumbing work which complies with the
133.9provisions of the minimum standard prescribed by the state commissioner of health
133.10Plumbing Board on premises or that part of premises owned and actually occupied by the
133.11worker as a residence, unless otherwise forbidden to do so by a local ordinance.
133.12    In any such city (b) No person, firm, or corporation shall engage in the business of
133.13installing plumbing nor install plumbing in connection with the dealing in and selling
133.14of plumbing material and supplies unless at all times a licensed master plumber, or in
133.15cities and towns with a population of fewer than 5,000 according to the federal census a
133.16restricted master plumber, who shall be responsible for proper installation, is in charge
133.17of the plumbing work of the person, firm, or corporation.
133.18    The Department of Health Plumbing Board shall prescribe rules, not inconsistent
133.19herewith, for the examination and licensing of plumbers.

133.20    Sec. 26. Minnesota Statutes 2006, section 326.401, subdivision 2, is amended to read:
133.21    Subd. 2. Journeyman exam. A plumber's apprentice who has completed four years
133.22of practical plumbing experience is eligible to take the journeyman plumbing examination.
133.23Up to 24 months of practical plumbing experience prior to registration as an apprentice
133.24may be applied to the four-year experience requirement. However, none of this practical
133.25plumbing experience may be applied if the person did not have any practical plumbing
133.26experience in the 12-month period immediately prior to registration. The commissioner
133.27Plumbing Board may adopt rules to evaluate whether the person's past practical plumbing
133.28experience is applicable in preparing for the journeyman's examination. If two years
133.29after completing the training the person has not taken the examination, the four years
133.30of experience shall be forfeited.
133.31    The commissioner may allow an extension of the two-year period for taking the
133.32exam for cases of hardship or other appropriate circumstances.

133.33    Sec. 27. [326.402] RESTRICTED PLUMBER LICENSE.
134.1    Subdivision 1. Licensure. The commissioner of labor and industry shall grant a
134.2restricted journeyman or master plumber license to an individual if:
134.3    (1) the individual completes an application with information required by the
134.4commissioner of labor and industry;
134.5    (2) the completed application is accompanied by a fee of $90;
134.6    (3) the commissioner of labor and industry receives the completed application and
134.7fee before January 1, 2008;
134.8    (4) the completed application demonstrates that the applicant has had at least two
134.9years for a restricted journeyman plumber license or four years for a restricted master
134.10plumber license of practical plumbing experience in the plumbing trade prior to the
134.11application; and
134.12    (5) during the entire time for which the applicant is claiming experience in
134.13contracting for plumbing work under clause (4), the applicant was in compliance with all
134.14applicable requirements of section 326.40.
134.15    Subd. 2. Use of license. A restricted master plumber and restricted journeyman
134.16plumber may engage in the plumbing trade in all areas of the state except in cities and
134.17towns with a population of more than 5,000 according to the federal census.
134.18    Subd. 3. Application period. Applications for restricted master plumber and
134.19restricted journeyman plumber licenses must be submitted to the commissioner prior
134.20to January 1, 2008.
134.21    Subd. 4. Renewal; use period for license. A restricted master plumber and
134.22restricted journeyman plumber license must be renewed annually for as long as that
134.23licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
134.24restricted journeyman plumber license within 12 months after the expiration date will
134.25result in permanent forfeiture of the restricted master plumber and restricted journeyman
134.26plumber license.
134.27    Subd. 5. Prohibition of transference. A restricted master plumber and restricted
134.28journeyman plumber license may not be transferred or sold to any other person.
134.29    Subd. 6. Bond; insurance. A restricted master plumber licensee is subject to the
134.30bond and insurance requirements of section 326.40, subdivision 2, unless the exemption
134.31provided by section 326.40, subdivision 3, applies.
134.32    Subd. 7. Fee. The annual fee for the restricted master plumber and restricted
134.33journeyman plumber licenses is the same fee as for a master or journeyman plumber
134.34license, respectively.

135.1    Sec. 28. Minnesota Statutes 2006, section 326.405, is amended to read:
135.2326.405 RECIPROCITY WITH OTHER STATES.
135.3    The commissioner of health may license without examination, upon payment of the
135.4required fee, nonresident applicants who are licensed under the laws of a state having
135.5standards for licensing plumbers which the commissioner determines are substantially
135.6equivalent to the standards of this state if the other state grants similar privileges to
135.7Minnesota residents duly licensed in this state. The commissioner may issue a temporary
135.8license without examination, upon payment of the required fee, nonresident applicants
135.9who are licensed under the laws of a state having standards for licensing which the
135.10commissioner determines are substantially equivalent to the standards of this state if
135.11the other state grants similar privileges to Minnesota residents duly licensed in this
135.12state. Applicants who receive a temporary license under this section may acquire an
135.13aggregate of 24 months of experience before they have to apply and pass the licensing
135.14examination. Applicants must register with the commissioner of labor and industry and
135.15the commissioner shall set a fee for a temporary license. Applicants have five years in
135.16which to comply with this section.

135.17    Sec. 29. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:
135.18    Subdivision 1. Application. Applications for plumber's license shall be made to the
135.19state commissioner of health labor and industry, with fee. Unless the applicant is entitled
135.20to a renewal, the applicant shall be licensed by the state commissioner of health labor and
135.21industry only after passing a satisfactory examination administered by the examiners
135.22commissioner of labor and industry, based upon rules adopted by the Plumbing Board
135.23showing fitness. Examination fees for both journeyman and master plumbers shall be in
135.24an amount prescribed by the state commissioner of health labor and industry pursuant to
135.25section 144.122. Upon being notified that of having successfully passed the examination
135.26for original license the applicant shall submit an application, with the license fee herein
135.27provided. License fees shall be in an amount prescribed by the state commissioner of
135.28health labor and industry pursuant to section 144.122. Licenses shall expire and be
135.29renewed as prescribed by the commissioner pursuant to section 144.122.

135.30    Sec. 30. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:
135.31    Subd. 2. Regulatory authority; tough person contests. All tough person contests,
135.32including amateur tough person contests, are subject to this chapter. All tough person
135.33contests are subject to American Boxing Commission (ABC) rules. Every contestant
135.34in a tough person contest shall have a physical examination prior to their bouts. Every
136.1contestant in a tough person contest shall wear padded gloves that weigh at least 12
136.2ounces. All tough person bouts are limited to two-minute rounds and a maximum of four
136.3total rounds. Officials at tough person bouts shall be licensed under this chapter.

136.4    Sec. 31. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision
136.5to read:
136.6    Subd. 3. Regulatory authority; similar sporting events. All mixed martial arts,
136.7ultimate fight contests, and similar sporting events are subject to this chapter.

136.8    Sec. 32. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:
136.9    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in
136.10the year of its issuance issued after the effective date of this act is valid for one year from
136.11the date it is issued and may be renewed by filing an application for renewal with the
136.12commission and payment of the license fee. An application for a license and renewal of a
136.13license must be on a form provided by the commission. There is a 30-day grace period
136.14during which a license may be renewed if a late filing penalty fee equal to the license fee
136.15is submitted with the regular license fee. A licensee that files late shall not conduct any
136.16activity regulated by this chapter until the commission has renewed the license. If the
136.17licensee fails to apply to the commission within the 30-day grace period, the licensee must
136.18apply for a new license under subdivision 1.

136.19    Sec. 33. Minnesota Statutes 2006, section 341.321, is amended to read:
136.20341.321 FEE SCHEDULE.
136.21    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission
136.22is as follows:
136.23    (1) referees, $35 $45 for each initial license and each renewal;
136.24    (2) promoters, $400 for each initial license and each renewal;
136.25    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
136.26    (4) trainers, $35 $45 for each initial license and each renewal;
136.27    (5) ring announcers, $25 $45 for each initial license and each renewal;
136.28    (6) boxers' seconds, $25 $45 for each initial license and each renewal;
136.29    (7) timekeepers, $25 $45 for each initial license and each renewal; and
136.30    (8) boxers, $35 $45 for each initial license and each renewal.;
136.31    (9) managers, $45 for each initial license and each renewal; and
136.32    (10) ringside physicians, $45 for each initial license and each renewal.
137.1    (b) The commission shall establish and assess an event fee for each sporting event.
137.2The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as
137.3determined by the commission when the sporting event is scheduled.
137.4    (c) All fees collected by the Minnesota Boxing Commission must be deposited in
137.5the Boxing Commission account in the special revenue fund.

137.6    Sec. 34. REPEALER.
137.7Minnesota Statutes 2006, section 326.45, is repealed.

137.8ARTICLE 9
137.9HIGH PRESSURE PIPING

137.10    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:
137.11326.46 SUPERVISION OF HIGH PRESSURE PIPING.
137.12    The Department of Labor and Industry shall supervise all high pressure piping
137.13used on all projects in this state, and may prescribe minimum standards which shall be
137.14uniform under rules adopted by the board.
137.15    The department shall employ inspectors and other assistants to carry out the
137.16provisions of sections 326.46 to 326.52.

137.17    Sec. 2. Minnesota Statutes 2006, section 326.461, is amended by adding a subdivision
137.18to read:
137.19    Subd. 1a. Board. "Board" means the Board of High Pressure Piping Systems.

137.20    Sec. 3. Minnesota Statutes 2006, section 326.47, subdivision 2, is amended to read:
137.21    Subd. 2. Permissive municipal regulation. A municipality may, by ordinance,
137.22provide for the inspection of high pressure piping system materials and construction, and
137.23provide that it shall not be constructed or installed except in accordance with minimum
137.24state standards. The authority designated by the ordinance for issuing high pressure piping
137.25permits and assuring compliance with state standards must report to the Department of
137.26Labor and Industry all violations of state high pressure piping standards.
137.27    A municipality may not adopt an ordinance with high pressure piping standards that
137.28does not conform to the uniform standards prescribed by the Department of Labor and
137.29Industry board. The Department of Labor and Industry board shall specify by rule the
137.30minimum qualifications for municipal inspectors.

137.31    Sec. 4. Minnesota Statutes 2006, section 326.47, subdivision 6, is amended to read:
138.1    Subd. 6. Filing and inspection fees. The Department of Labor and Industry
138.2must charge a filing fee set by the commissioner board under section 16A.1285 for all
138.3applications for permits to construct or install high pressure piping systems. The fee for
138.4inspection of high pressure piping system construction or installation shall be set by the
138.5commissioner board under section 16A.1285. This subdivision does not apply where a
138.6permit is issued by a municipality complying with subdivision 2.

138.7    Sec. 5. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.
138.8    Subdivision 1. Composition. (a) The Board of High Pressure Piping Systems shall
138.9consist of 12 members who must be residents of the state, appointed by the governor, and
138.10confirmed by the senate. The commissioner of the Department of Labor and Industry or
138.11the commissioner's designee shall be a voting member. The first appointed board members
138.12shall serve an initial term of four years, except where designated otherwise. The governor
138.13shall then reappoint the current members or appoint replacement members, all or in part, to
138.14subsequent three-year terms. Midterm vacancies shall be filled for the remaining portion
138.15of the term. Vacancies occurring with less than six months time remaining in the term
138.16shall be filled for the existing term and the following three-year term. Of the 11 appointed
138.17members, the composition shall be as follows:
138.18    (1) one member shall be a high pressure piping inspector;
138.19    (2) one member shall be a licensed mechanical engineer;
138.20    (3) one member shall be a representative of the piping industry;
138.21    (4) four members shall be high pressure piping contractors or their representatives,
138.22engaged in the scope of high pressure piping, two from the metro area and two from
138.23greater Minnesota;
138.24    (5) two members shall be high pressure piping journeypersons engaged in the scope
138.25of high pressure piping systems installation, one from the metro area and one from greater
138.26Minnesota; and
138.27    (6) two members shall be representatives from utility companies in Minnesota
138.28who shall serve an initial term of two years.
138.29    (b) Except for the licensed mechanical engineer and the members from utilities
138.30companies, all persons appointed to the board must possess a current license or
138.31competency credential required for contractors and persons engaged in the design,
138.32installation, alteration, and inspection of high pressure piping systems.
138.33    Subd. 2. Powers. (a) The board shall have the power to:
138.34    (1) elect its chair;
138.35    (2) specify the high pressure piping code that must be followed in Minnesota;
139.1    (3) maintain an appeals committee to make determinations regarding any complaints,
139.2code amendments, code compliance, and code clarifications filed with the board;
139.3    (4) adopt rules necessary for the regulation and licensing of contractors,
139.4journeypersons, trainees, and persons engaged in the design, installation, alteration, and
139.5inspection of high pressure piping systems, except for persons licensed under sections
139.6326.02 to 326.15;
139.7    (5) adopt rules necessary for continuing education for individuals regulated and
139.8licensed under this section; and
139.9    (6) pay expenses deemed necessary in the performance of board duties, including:
139.10    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18,
139.11subdivision 2; and
139.12    (ii) per diem and expenses for its members as provided in section 15.0575,
139.13subdivision 3.
139.14    (b) Complaints filed under this section may originate with high pressure piping
139.15inspectors, contractors, or their employees, or other persons engaged in the design,
139.16installation, and alteration of a high pressure piping system. The board shall make their
139.17findings known to all parties and the commissioner of the Department of Labor and
139.18Industry within the time period specified by the board.
139.19    Subd. 3. Fee and finances. The board shall submit an annual budget to the
139.20commissioner of the Department of Labor and Industry. The commissioner shall collect
139.21fees under section 326.47, subdivision 6, necessary for the operation and continuance
139.22of the board. The commissioner is responsible for the enforcement of the codes and
139.23licensing requirements determined by the board. The board shall set the fees for licenses
139.24and certification under this section and for all high pressure piping system permits and
139.25submit the fee structure to the commissioner of labor and industry. The commissioner
139.26of finance shall make a quarterly certification of the amount necessary to pay expenses
139.27required for operation of the board under subdivision 2, paragraph (a), clause (6). The
139.28certified amount is appropriated to the board for those purposes from the fees collected
139.29under section 326.50.

139.30    Sec. 6. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:
139.31    Subdivision 1. License required; rules; time credit. No person shall engage in
139.32or work at the business of a contracting pipefitter unless issued an individual contracting
139.33pipefitter license to do so by the Department of Labor and Industry under rules prescribed
139.34by the board. No license shall be required for repairs on existing installations. No
139.35person shall engage in or work at the business of journeyman pipefitter unless issued an
140.1individual journeyman pipefitter competency license to do so by the Department of Labor
140.2and Industry under rules prescribed by the board. A person possessing an individual
140.3contracting pipefitter competency license may also work as a journeyman pipefitter.
140.4    No person, partnership, firm, or corporation shall install high pressure piping, nor
140.5install high pressure piping in connection with the dealing in and selling of high pressure
140.6pipe material and supplies, unless, at all times, a person possessing a contracting pipefitter
140.7individual competency license or a journeyman pipefitter individual competency license is
140.8responsible for the high pressure pipefitting work conducted by the person, partnership,
140.9firm, or corporation being in conformity with Minnesota Statutes and Minnesota Rules.
140.10    The Department of Labor and Industry board shall prescribe rules, not inconsistent
140.11herewith, for the examination and individual competency licensing of contracting
140.12pipefitters and journeyman pipefitters and for issuance of permits by the department and
140.13municipalities for the installation of high pressure piping.
140.14    An employee performing the duties of inspector for the Department of Labor and
140.15Industry in regulating pipefitting shall not receive time credit for the inspection duties
140.16when making an application for a license required by this section.

140.17    Sec. 7. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:
140.18    Subd. 2. High pressure pipefitting business license. Before obtaining a permit
140.19for high pressure piping work, a person, partnership, firm, or corporation must obtain or
140.20utilize a business with a high pressure piping business license.
140.21    A person, partnership, firm, or corporation must have at all times as a full-time
140.22employee at least one individual holding an individual contracting pipefitter competency
140.23license. Only full-time employees who hold individual contracting pipefitter licenses
140.24are authorized to obtain high pressure piping permits in the name of the business. The
140.25individual contracting pipefitter competency license holder can be the employee of only
140.26one high pressure piping business at a time.
140.27    To retain its business license without reapplication, a person, partnership, firm, or
140.28corporation holding a high pressure piping business license that ceases to employ a person
140.29holding an individual contracting pipefitter competency license shall have 60 days from
140.30the last day of employment of its previous individual contracting pipefitter competency
140.31license holder to employ another license holder. The Department of Labor and Industry
140.32must be notified no later than five days after the last day of employment of the previous
140.33license holder.
140.34    No high pressure pipefitting work may be performed during any period when the
140.35high pressure pipefitting business does not have an individual contracting pipefitter
141.1competency license holder on staff. If a license holder is not employed within 60 days,
141.2the pipefitting business license shall lapse.
141.3    The Department of Labor and Industry board shall prescribe by rule procedures for
141.4application for and issuance of business licenses and fees.

141.5    Sec. 8. Minnesota Statutes 2006, section 326.48, is amended by adding a subdivision
141.6to read:
141.7    Subd. 6. Reciprocity with other states. The commissioner may issue a temporary
141.8license without examination, upon payment of the required fee, nonresident applicants
141.9who are licensed under the laws of a state having standards for licensing which the
141.10commissioner determines are substantially equivalent to the standards of this state if
141.11the other state grants similar privileges to Minnesota residents duly licensed in this
141.12state. Applicants who receive a temporary license under this section may acquire an
141.13aggregate of 24 months of experience before they have to apply and pass the licensing
141.14examination. Applicants must register with the commissioner of labor and industry and
141.15the commissioner shall set a fee for a temporary license. Applicants have five years in
141.16which to comply with this section.

141.17    Sec. 9. Minnesota Statutes 2006, section 326.50, is amended to read:
141.18326.50 APPLICATION; FEES.
141.19    Application for an individual contracting pipefitter competency or an individual
141.20journeyman pipefitter competency license shall be made to the Department of Labor and
141.21Industry, with fees. The applicant shall be licensed only after passing an examination
141.22administered by the Department of Labor and Industry in accordance with rules adopted
141.23by the board.

141.24    Sec. 10. Minnesota Statutes 2006, section 326.51, is amended to read:
141.25326.51 DEPARTMENT MAY REVOKE LICENSES.
141.26    The department board may revoke or suspend, for cause, any license obtained
141.27through error or fraud, or if the licensee is shown to be incompetent, or for a violation
141.28of any of its rules and regulations applicable to high pressure pipefitting work. The
141.29licensee shall have notice, in writing, enumerating the charges, and be entitled to a hearing
141.30on at least ten days' notice, with the right to produce testimony. The hearing shall be
141.31held pursuant to chapter 14. The commissioner board shall issue a final order based on
141.32testimony and the record at hearing. One year from the date of revocation application
141.33may be made for a new license.

142.1    Sec. 11. Minnesota Statutes 2006, section 326.52, is amended to read:
142.2326.52 DEPOSIT OF FEES.
142.3    All fees received under sections 326.46 to 326.52 shall be deposited by the
142.4Department of Labor and Industry to the credit of the general fund in the state treasury.
142.5The salaries and per diem of the inspectors and examiners hereinbefore provided, their
142.6expenses, and all incidental expenses of the department and board in carrying out the
142.7provisions of sections 326.46 to 326.52 shall be paid from the appropriations made to the
142.8Department of Labor and Industry. The commissioner board by rule shall set the amount
142.9of the fees at a level that approximates, to the greatest extent possible, the salaries, per
142.10diem, and incidental expenses of the department.

142.11    Sec. 12. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING
142.12SYSTEMS.
142.13    The authority of the commissioner of labor and industry to adopt rules relating to
142.14high pressure piping systems is transferred to the Board of High Pressure Piping Systems.
142.15Licenses and permits currently in effect remain in effect according to their terms unless
142.16affected by board action. Rules adopted by the commissioner of labor and industry remain
142.17in effect until amended or repealed by the board. The commissioner of administration
142.18may not use the authority under Minnesota Statutes, section 16B.37, to modify transfers of
142.19authority in this act.

142.20    Sec. 13. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH
142.21PRESSURE PIPING SYSTEMS.
142.22    The governor must complete the appointments required by Minnesota Statutes,
142.23section 326.471, no later than July 1, 2007. The commissioner of labor and industry
142.24shall convene the first meeting of the Board of High Pressure Piping Systems no later
142.25than September 1, 2007.

142.26    Sec. 14. TRANSFER OF AUTHORITY; PLUMBING BOARD.
142.27    The authority of the commissioners of health and labor and industry to adopt rules
142.28relating to plumbers is transferred to the Plumbing Board. Licenses and permits currently
142.29in effect remain in effect according to their terms unless affected by board action. Rules
142.30adopted by the commissioner of health or labor and industry remain in effect until amended
142.31or repealed by the board. The commissioner of administration may not use the authority
142.32under Minnesota Statutes, section 16B.37, to modify the transfers of authority in this act.

143.1    Sec. 15. FIRST MEETING; APPOINTMENTS FOR PLUMBING BOARD.
143.2    The governor must complete the appointments required by Minnesota Statutes,
143.3section 326.372, no later than July 1, 2007. The commissioner of labor and industry shall
143.4convene the first meeting of the Plumbing Board no later than September 1, 2007.

143.5ARTICLE 10
143.6IRON RANGE RESOURCES AND REHABILITATION BOARD

143.7    Section 1. [270.99] HOCKEY HERITAGE SURCHARGE.
143.8    Subdivision 1. Imposition. A surcharge of 25 cents is imposed on the sale of every
143.9ticket to an NCAA Division I men's hockey event in the state.
143.10    Subd. 2. Collection; remittance. The surcharge imposed in this section shall be
143.11collected by all sellers of these tickets with nexus in the state of Minnesota. The seller
143.12shall report the surcharge on a return proscribed by the commissioner of revenue and
143.13shall remit the surcharge with the return.
143.14    Subd. 3. Administration. Unless specifically provided otherwise in this section, the
143.15audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and
143.16administrative provisions in this chapter and chapter 289A that are applicable to taxes
143.17imposed under chapter 297A apply to the surcharge imposed under this section.
143.18    Subd. 4. Deposit of revenues. The commissioner of revenue shall deposit all
143.19revenues, including penalty and interest, derived from the surcharge imposed in this
143.20section in the hockey surcharge account in the special revenue fund. The amount deposited
143.21under this section is appropriated to the Iron Range Resources and Rehabilitation Board
143.22for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame
143.23Museum provided that it continues to operate in the city. Payments under this section for
143.24the Hockey Hall of Fame Museum are in addition to and must not be used to supplant
143.25funding under section 298.28, subdivision 9c.

143.26    Sec. 2. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:
143.27    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby
143.28created the Iron Range Resources and Rehabilitation Board, consisting of 13 ten members,
143.29five of whom are state senators appointed by the Subcommittee on Committees of the
143.30Rules Committee of the senate, and five of whom are representatives, appointed by the
143.31speaker of the house of representatives. The remaining members shall be appointed one
143.32each by the senate majority leader, the speaker of the house of representatives, and the
143.33governor and must be nonlegislators who reside in a taconite assistance area as defined in
143.34section 273.1341. The members shall be appointed in January of every odd-numbered
144.1year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and
144.2shall serve until January of the next odd-numbered year. Vacancies on the board shall be
144.3filled in the same manner as the original members were chosen. At least a majority of
144.4the legislative members of the board shall be elected from state senatorial or legislative
144.5districts in which over 50 percent of the residents reside within a taconite assistance area
144.6as defined in section 273.1341. All expenditures and projects made by the commissioner
144.7of Iron Range resources and rehabilitation shall be consistent with the priorities
144.8established in subdivision 8 and shall first be submitted to the Iron Range Resources and
144.9Rehabilitation Board for approval by a majority of the board of expenditures and projects
144.10for rehabilitation purposes as provided by this section, and the method, manner, and time
144.11of payment of all funds proposed to be disbursed shall be first approved or disapproved by
144.12the board. The board shall biennially make its report to the governor and the legislature on
144.13or before November 15 of each even-numbered year. The expenses of the board shall be
144.14paid by the state from the funds raised pursuant to this section.

144.15    Sec. 3. Minnesota Statutes 2006, section 298.227, is amended to read:
144.16298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
144.17    An amount equal to that distributed pursuant to each taconite producer's taxable
144.18production and qualifying sales under section 298.28, subdivision 9a, shall be held by
144.19the Iron Range Resources and Rehabilitation Board in a separate taconite economic
144.20development fund for each taconite and direct reduced ore producer. Money from the
144.21fund for each producer shall be released by the commissioner after review by a joint
144.22committee consisting of an equal number of representatives of the salaried employees and
144.23the nonsalaried production and maintenance employees of that producer. The District 11
144.24director of the United States Steelworkers of America, on advice of each local employee
144.25president, shall select the employee members. In nonorganized operations, the employee
144.26committee shall be elected by the nonsalaried production and maintenance employees.
144.27The review must be completed no later than six months after the producer presents a
144.28proposal for expenditure of the funds to the committee. The funds held pursuant to this
144.29section may be released only for acquisition of plant and stationary mining equipment
144.30and facilities for the producer or for research and development in Minnesota on new
144.31mining, or taconite, iron, or steel production technology, but only if the producer provides
144.32a matching expenditure to be used for the same purpose of at least 50 percent of the
144.33distribution based on 14.7 cents per ton beginning with distributions in 2002. Effective for
144.34proposals for expenditures of money from the fund approved beginning the day following
144.35final enactment, the commissioner may release the funds only if the proposed expenditure
145.1is approved by a majority of the members of the Iron Range Resources and Rehabilitation
145.2Board. If a producer uses money which has been released from the fund prior to the day
145.3following final enactment to procure haulage trucks, mobile equipment, or mining shovels,
145.4and the producer removes the piece of equipment from the taconite tax relief area defined
145.5in section 273.134 within ten years from the date of receipt of the money from the fund,
145.6a portion of the money granted from the fund must be repaid to the taconite economic
145.7development fund. The portion of the money to be repaid is 100 percent of the grant if the
145.8equipment is removed from the taconite tax relief area within 12 months after receipt of
145.9the money from the fund, declining by ten percent for each of the subsequent nine years
145.10during which the equipment remains within the taconite tax relief area. If a taconite
145.11production facility is sold after operations at the facility had ceased, any money remaining
145.12in the fund for the former producer may be released to the purchaser of the facility on
145.13the terms otherwise applicable to the former producer under this section. If a producer
145.14fails to provide matching funds for a proposed expenditure within six months after the
145.15commissioner approves release of the funds, the funds are available for release to another
145.16producer in proportion to the distribution provided and under the conditions of this section.
145.17Any portion of the fund which is not released by the commissioner within two years of its
145.18deposit in the fund shall be divided between the taconite environmental protection fund
145.19created in section 298.223 and the Douglas J. Johnson economic protection trust fund
145.20created in section 298.292 for placement in their respective special accounts. Two-thirds
145.21of the unreleased funds shall be distributed to the taconite environmental protection fund
145.22and one-third to the Douglas J. Johnson economic protection trust fund.
145.23EFFECTIVE DATE.This section is effective for proposals for expenditures of
145.24money from the fund the day following final enactment.

145.25    Sec. 4. APPROPRIATION; IRON RANGE RESOURCES AND
145.26REHABILITATION BOARD.
145.27    $500,000 is appropriated from the Iron Range Resources and Rehabilitation Board
145.28fund for fiscal year 2008 for allocation in this section:
145.29    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other
145.30infrastructure to a peat project in Spencer Township in Aitkin County;
145.31    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham
145.32Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent
145.33endowment for the preservation;
145.34    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the
145.35organization to employ youth for the construction of community centers; and
146.1    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field
146.2construction.
146.3    These are onetime appropriations.

146.4    Sec. 5. IRRRB BUILDING.
146.5    The Iron Range Resources and Rehabilitation Board office building in Eveleth,
146.6Minnesota is designated and named the Joe Begich Building and shall be signed as such
146.7at every entrance.

146.8ARTICLE 11
146.9ELECTRICAL

146.10    Section 1. Minnesota Statutes 2006, section 326.01, subdivision 6g, is amended to read:
146.11    Subd. 6g. Personal direct supervision. The term "personal "Direct supervision"
146.12means that a person licensed to perform electrical work oversees and directs the electrical
146.13work performed by an unlicensed person such that:
146.14    (1) the licensed person actually reviews the electrical work performed by the
146.15unlicensed person an unlicensed individual is being supervised by an individual licensed
146.16to perform the electrical work being supervised;
146.17    (2) during the entire working day of the unlicensed individual, the licensed
146.18individual is physically present at the location where the unlicensed individual is
146.19preforming electrical work and immediately available to the unlicensed individual;
146.20    (3) the licensed person individual is physically present and immediately available to
146.21the unlicensed person individual at all times for assistance and direction; and
146.22    (4) electronic supervision does not meet the requirement of physically present and
146.23immediately available;
146.24    (5) the licensed individual shall review the electrical work performed by the
146.25unlicensed individual before the electrical work is operated; and
146.26    (3) (6) the licensed person individual is able to and does determine that all electrical
146.27work performed by the unlicensed person individual is performed in compliance with
146.28section 326.243.
146.29    The licensed person individual is responsible for the compliance with section
146.30326.243 of all electrical work performed by the unlicensed person individual.

146.31    Sec. 2. Minnesota Statutes 2006, section 326.241, subdivision 1, is amended to read:
146.32    Subdivision 1. Composition. (a) The Board of Electricity shall consist of 11 12
146.33members, residents of the state, appointed by the governor of whom and confirmed by
147.1the senate. The commissioner of labor and industry or the commissioner's designee shall
147.2be a nonvoting member. The first appointed board members shall serve an initial term
147.3of four years, except where designated otherwise. The governor shall then reappoint the
147.4current members or appoint replacement members, all or in part, to subsequent three-year
147.5terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies
147.6occurring with less than six months time remaining in the term shall be filled for the
147.7existing term and the following three-year term. Of the 11 appointed members, the
147.8composition shall be as follows:
147.9    (1) two shall be representatives of the electrical suppliers in the rural areas of the
147.10state,
147.11    (2) two shall be master electricians, who shall be contractors,
147.12    (3) two journeyman electricians,
147.13    (4) one registered consulting electrical engineer,
147.14    (5) two power limited technicians, who shall be technology system contractors
147.15primarily engaged in the business of installing technology circuits or systems, and
147.16    (6) two public members as defined by section 214.02.
147.17    (b) Except as provided herein, membership terms, compensation of members,
147.18removal of members, the filling of membership vacancies, and fiscal year and reporting
147.19requirements shall be as provided in sections 214.07 to 214.09. The provision of staff,
147.20administrative services and office space; the review and processing of complaints; the
147.21setting of board fees; and other provisions relating to board operations shall be as provided
147.22in chapter 214.

147.23    Sec. 3. Minnesota Statutes 2006, section 326.241, subdivision 2, is amended to read:
147.24    Subd. 2. Powers. (a) The board, or the complaint committee on behalf of the board
147.25where authorized by law, shall have power to:
147.26    (1) Elect its own officers.
147.27    (2) Engage and fix the compensation of inspectors, and hire employees. The salary
147.28of the executive secretary shall be established pursuant to chapter 43A. All agents and
147.29employees other than contract inspectors shall be in the classified service and shall be
147.30compensated pursuant to chapter 43A. All inspectors shall hold licenses as master or
147.31journeyman electricians under section 326.242, subdivision 1(1) or 2(1), and shall give
147.32bond in an amount fixed by the board, conditioned upon the faithful performance of
147.33their duties.
147.34    (3) (2) Pay such other expenses as it may deem necessary in the performance of its
147.35duties, including rent, supplies, and such like.
148.1    (3) Select from its members individuals to serve on any other state advisory councils,
148.2boards, or committees.
148.3    (4) Enforce the provisions of sections 326.241 to 326.248, and provide, upon
148.4request, such additional voluntary inspections and reviews as it may deem appropriate.
148.5    (5) Issue, renew, refuse to renew, suspend, temporarily suspend, and revoke licenses,
148.6censure licensees, assess civil penalties, issue cease and desist orders, and seek injunctive
148.7relief and civil penalties in court as authorized by section 326.242 and other provisions of
148.8Minnesota law. Establish the committees required herein and any others deemed necessary
148.9by the board or requested by the commissioner.
148.10    (6) Adopt reasonable rules to carry out its duties under sections 326.241 to 326.248
148.11and to provide for the amount and collection of fees for inspection and other services. All
148.12rules shall be adopted in accordance with chapter 14.
148.13    (7) Advise the commissioner on issues related to sections 326.241 to 326.248 or as
148.14requested by the commissioner.
148.15    (b) Except for the powers granted to the Electricity Board the commissioner of labor
148.16and industry shall administer the provisions of sections 326.241 to 326.248 and for such
148.17purposes may employ electrical inspectors and other assistants.

148.18    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:
148.19    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual
148.20means an individual who has not been licensed by the Board of Electricity as a Class A
148.21master electrician or as a Class A journeyman electrician. An unlicensed individual shall
148.22not perform electrical work required to be performed by a licensed individual unless the
148.23individual has first registered with the Board of Electricity as an unlicensed individual.
148.24Thereafter, an unlicensed individual shall not perform electrical work required to be
148.25performed by a licensed individual unless the work is performed under the personal direct
148.26supervision of a person an individual actually licensed to perform such work and. The
148.27licensed electrician individual and unlicensed persons are individual must be employed
148.28by the same employer. Licensed persons individuals shall not permit unlicensed persons
148.29individuals to perform electrical work except under the personal direct supervision of
148.30a person an individual actually licensed to perform such work. Unlicensed persons
148.31individuals shall not supervise the performance of electrical work or make assignments
148.32of electrical work to unlicensed persons individuals. Except for technology circuit or
148.33system work, licensed persons individuals shall supervise no more than two unlicensed
148.34persons individuals. For technology circuit or system work, licensed persons individuals
148.35shall supervise no more than three unlicensed persons individuals.
149.1    (b) Notwithstanding any other provision of this section, no person individual other
149.2than a master electrician or power limited technician shall plan or lay out electrical wiring,
149.3apparatus, or equipment for light, heat, power, or other purposes, except circuits or
149.4systems exempted from personal licensing by subdivision 12, paragraph (b).
149.5    (c) Contractors employing unlicensed persons performing individuals to perform
149.6electrical work shall maintain records establishing compliance with this subdivision,
149.7which that shall designate identify all unlicensed persons individuals performing electrical
149.8work, except for persons working on circuits or systems exempted from personal licensing
149.9by subdivision 12, paragraph (b), and shall permit the board to examine and copy all such
149.10records as provided for in section 326.244, subdivision 6.
149.11    (d) When a licensed individual supervises the electrical work of an unlicensed
149.12individual, the licensed individual is responsible for ensuring that the electrical work
149.13complies with sections 326.241 to 326.248 and rules adopted.

149.14    Sec. 5. Minnesota Statutes 2006, section 326.242, is amended by adding a subdivision
149.15to read:
149.16    Subd. 5a. Registration of unlicensed individuals. Unlicensed individuals
149.17performing electrical work for a contractor or employer shall register with the department
149.18in the manner prescribed by the commissioner. Experience credit for electrical work
149.19performed after January 1, 2008, by an applicant for a license identified in this section
149.20shall not be granted where the applicant has not registered with or is not licensed by
149.21the department.

149.22    Sec. 6. Minnesota Statutes 2006, section 326.242, subdivision 11, is amended to read:
149.23    Subd. 11. Reciprocity. To the extent that any other state which provides for the
149.24licensing of electricians provides for similar action the board may grant licenses, without
149.25examination, of the same grade and class to an electrician who has been licensed by such
149.26other state for at least one year, upon payment by the applicant of the required fee and
149.27upon the board being furnished with proof that the required fee and upon the board being
149.28furnished with proof that the qualifications of the applicant are equal to the qualifications
149.29of holders of similar licenses in Minnesota. The commissioner may enter into reciprocity
149.30agreements for personal licenses with another state if approved by the board. Once
149.31approved by the board, the commissioner may issue a personal license without requiring
149.32the applicant to pass an examination provided the applicant:
149.33    (a) submits an application under section 326.242;
149.34    (b) pays the fee required under section 326.242; and
150.1    (c) holds a valid comparable license in the state participating in the agreement.
150.2    Agreements are subject to the following:
150.3    (1) The parties to the agreement must administer a statewide licensing program that
150.4includes examination and qualifying experience or training comparable to Minnesota's.
150.5    (2) The experience and training requirements under which an individual applicant
150.6qualified for examination in the qualifying state must be deemed equal to or greater than
150.7required for an applicant making application in Minnesota at the time the applicant
150.8acquired the license in the qualifying state.
150.9    (3) The applicant must have acquired the license in the qualifying state through an
150.10examination deemed equivalent to the same class of license examination in Minnesota.
150.11A lesser class of license may be granted where the applicant has acquired a greater
150.12class of license in the qualifying state and the applicant otherwise meets the conditions
150.13of this subdivision.
150.14    (4) At the time of application, the applicant must hold a valid license in the
150.15qualifying state and have held the license continuously for at least one year before making
150.16application in Minnesota.
150.17    (5) An applicant is not eligible for a license under this subdivision if the applicant
150.18has failed the same or greater class of license examination in Minnesota, or if the
150.19applicant's license of the same or greater class has been revoked or suspended.
150.20    (6) An applicant who has failed to renew a personal license for two years or more
150.21after its expiration is not eligible for a license under this subdivision.

150.22    Sec. 7. REPEALER.
150.23Minnesota Statutes 2006, sections 326.01, subdivision 4; and 326.242, subdivision
150.244, are repealed.
150.25EFFECTIVE DATE.This section is effective the day following final enactment.

150.26ARTICLE 12
150.27APPRENTICESHIP BOARD

150.28    Section 1. Minnesota Statutes 2006, section 178.01, is amended to read:
150.29178.01 PURPOSES.
150.30    The purposes of this chapter are: to open to young people regardless of race, sex,
150.31creed, color or national origin, the opportunity to obtain training that will equip them for
150.32profitable employment and citizenship; to establish as a means to this end, a program
150.33of voluntary apprenticeship under approved apprentice agreements providing facilities
151.1for their training and guidance in the arts, skills, and crafts of industry and trade, with
151.2concurrent, supplementary instruction in related subjects; to promote employment
151.3opportunities under conditions providing adequate training and reasonable earnings;
151.4to relate the supply of skilled workers to employment demands; to establish standards
151.5for apprentice training; to establish an Apprenticeship Advisory Council Board and
151.6apprenticeship committees to assist in effectuating the purposes of this chapter; to provide
151.7for a Division of Labor Standards and Apprenticeship within the Department of Labor
151.8and Industry; to provide for reports to the legislature regarding the status of apprentice
151.9training in the state; to establish a procedure for the determination of apprentice agreement
151.10controversies; and to accomplish related ends.

151.11    Sec. 2. Minnesota Statutes 2006, section 178.02, is amended to read:
151.12178.02 APPRENTICESHIP ADVISORY COUNCIL BOARD.
151.13    Subdivision 1. Members. The commissioner of labor and industry, hereinafter
151.14called the commissioner, shall appoint an Apprenticeship Advisory Council Board,
151.15hereinafter referred to as the council board, composed of three representatives each from
151.16employer and employee organizations, and two representatives of the general public. The
151.17director of education responsible for career and technical education or designee shall be an
151.18ex officio member of the council board and shall serve in an advisory capacity only.
151.19    Subd. 2. Terms. The council board shall expire and the terms, compensation, and
151.20removal of appointed members shall be as provided in section 15.059, except that the
151.21council shall not expire before June 30, 2003.
151.22    Subd. 4. Duties. The council board shall meet at the call of the commissioner. It
151.23shall propose occupational classifications for apprenticeship programs; propose minimum
151.24standards for apprenticeship programs and agreements; and advise on the establishment
151.25of such policies, procedures, and rules as the commissioner board deems necessary in
151.26implementing the intent of this chapter.

151.27    Sec. 3. Minnesota Statutes 2006, section 178.03, subdivision 3, is amended to read:
151.28    Subd. 3. Duties and functions. The director, under the supervision of the
151.29commissioner, and with the advice and oversight of the Apprenticeship Advisory
151.30Council Board, is authorized: to administer the provisions of this chapter; to promote
151.31apprenticeship and other forms of on the job training; to establish, in cooperation and
151.32consultation with the Apprenticeship Advisory Council Board and with the apprenticeship
151.33committees, conditions and training standards for the approval of apprenticeship programs
151.34and agreements, which conditions and standards shall in no case be lower than those
152.1prescribed by this chapter; to promote equal employment opportunity in apprenticeship
152.2and other on the job training and to establish a Minnesota plan for equal employment
152.3opportunity in apprenticeship which shall be consistent with standards established
152.4under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of
152.5registration to sponsors of approved apprenticeship programs; to act as secretary of the
152.6Apprenticeship Advisory Council Board; to approve, if of the opinion that approval is
152.7for the best interest of the apprentice, any apprenticeship agreement which meets the
152.8standards established hereunder; to terminate any apprenticeship agreement in accordance
152.9with the provisions of such agreement; to keep a record of apprenticeship agreements and
152.10their disposition; to issue certificates of completion of apprenticeship; and to perform
152.11such other duties as the commissioner deems necessary to carry out the intent of this
152.12chapter; provided, that the administration and supervision of supplementary instruction in
152.13related subjects for apprentices; coordination of instruction on a concurrent basis with
152.14job experiences, and the selection and training of teachers and coordinators for such
152.15instruction shall be the function of state and local boards responsible for vocational
152.16education. The director shall have the authority to make wage determinations applicable
152.17to the graduated schedule of wages and journeyman wage rate for apprenticeship
152.18agreements, giving consideration to the existing wage rates prevailing throughout the
152.19state, except that no wage determination by the director shall alter an existing wage
152.20provision for apprentices or journeymen that is contained in a bargaining agreement in
152.21effect between an employer and an organization of employees, nor shall the director
152.22make any determination for the beginning rate for an apprentice that is below the wage
152.23minimum established by federal or state law.

152.24    Sec. 4. Minnesota Statutes 2006, section 178.041, subdivision 1, is amended to read:
152.25    Subdivision 1. Rules. The commissioner may, upon receipt of the council's board's
152.26proposals, accept, adopt, and issue them by rule with any modifications or amendments
152.27the commissioner finds appropriate. The commissioner may refer them back to the
152.28council board with recommendations for further study, consideration and revision. If
152.29the commissioner refuses to accept, adopt, and issue by rule or other appropriate action
152.30a board proposal, the commissioner must provide a written explanation of the reason
152.31for the refusal to the board within 30 days after the board submitted the proposal to the
152.32commissioner. Additional rules may be issued as the commissioner may deem necessary.