1.1                          A bill for an act 
  1.2             relating to employment; providing penalties for 
  1.3             violations of employment agency provisions; modifying 
  1.4             certain procedures; amending Minnesota Statutes 1998, 
  1.5             sections 184.22, subdivision 3; 184.30, subdivision 1; 
  1.6             184.32; 184.35; and 184.38, subdivision 11, and by 
  1.7             adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 184.22, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [REGISTRATION.] Before starting business in this 
  1.12  state, any firm established as an exempt firm under subdivision 
  1.13  2 shall (1) file a sworn statement with the commissioner 
  1.14  indicating whether or not it will conduct its business in a 
  1.15  manner consistent with the provisions of subdivision 2 and other 
  1.16  information the commissioner by rule requires, (2) pay the 
  1.17  registration fee required by section 184.29, and (3) furnish the 
  1.18  bond required by section 184.30.  A violation of this 
  1.19  subdivision may be subject to a fine of $100 for the first month 
  1.20  a search firm is operating without a registration and an 
  1.21  additional $500 for each month operating without a registration 
  1.22  thereafter.  A search firm registration may not be transferred 
  1.23  to another search firm, unless written notice of the transfer is 
  1.24  given to the commissioner.  
  1.25     Sec. 2.  Minnesota Statutes 1998, section 184.30, 
  1.26  subdivision 1, is amended to read: 
  2.1      Subdivision 1.  Every application for an employment 
  2.2   agency's license, and every annual report required to be filed 
  2.3   under section 184.22, subdivision 2, must be accompanied by a 
  2.4   surety bond approved by the department in the amount of $10,000 
  2.5   for each location; except, that for a search firm, the bond is 
  2.6   required only for the first five consecutive years of 
  2.7   registration.  The bond must be filed in the office of the 
  2.8   secretary of state and conditioned that the employment agency 
  2.9   and each member, shareholder, director, or officer of a firm, 
  2.10  partnership, corporation, or association operating as an 
  2.11  employment agency will comply with the provisions of sections 
  2.12  184.21 to 184.40 and any contract made by the employment agent 
  2.13  in the conduct of the business.  A person damaged by a breach of 
  2.14  any condition of the bond may bring an action on the bond, and 
  2.15  successive actions may be maintained on it. 
  2.16     Sec. 3.  Minnesota Statutes 1998, section 184.32, is 
  2.17  amended to read: 
  2.18     184.32 [DURATION OF LICENSE.] 
  2.19     Every license, unless previously revoked, shall remain in 
  2.20  force until January immediately following the date of its issue, 
  2.21  and every employment agent and counselor shall, upon the filing 
  2.22  of a new application and upon payment of the amount of the 
  2.23  license fee required and the filing of a new bond, and complying 
  2.24  in all respects with the lawful requirements, have issued to it 
  2.25  a license for the ensuing year, unless the department shall 
  2.26  refuse to do so for any of the reasons stated in this chapter.  
  2.27  Applications for the renewal of an agency license shall be in 
  2.28  the office of the department of labor and industry no later than 
  2.29  30 days prior to the expiration of the license and must be 
  2.30  accompanied by the remittance prescribed by law, a bond filing 
  2.31  fee, and a surety bond in the amount of $10,000.  A violation of 
  2.32  this section may be subject to a fine of $100 for the first 
  2.33  month an agency is operating without a license and an additional 
  2.34  $500 for each additional month operating without a license 
  2.35  thereafter. 
  2.36     Sec. 4.  Minnesota Statutes 1998, section 184.35, is 
  3.1   amended to read: 
  3.2      184.35 [APPEAL TO DISTRICT COURT ORDERS OF DEPARTMENT; 
  3.3   APPEAL.] 
  3.4      If the department refuses to grant a license, or suspends 
  3.5   or revokes a license that has been granted, the applicant shall 
  3.6   have the right of appeal to the district court of the county of 
  3.7   the applicant's residence; and in the event the applicant is a 
  3.8   nonresident of the state, then to the district court for Ramsey 
  3.9   county.  Such court shall advance such causes on their calendars 
  3.10  for early disposition; and in counties having continuous 
  3.11  sessions of court, the same shall be heard within 20 days after 
  3.12  such appeal shall have been perfected.  Such appeal shall be 
  3.13  perfected by the service of a written notice of appeal upon the 
  3.14  commissioner within 60 days after notice to the applicant of the 
  3.15  department's action.  The department may issue an order 
  3.16  assessing a penalty, refusing to grant a license, or suspending 
  3.17  or revoking a license that has been granted.  The department 
  3.18  shall serve the order upon the applicant, agency, or search firm 
  3.19  in person or by certified mail.  An applicant, agency, or search 
  3.20  firm who wishes to contest the department's order shall file 
  3.21  written notice of objection to the order with the commissioner 
  3.22  within 15 calendar days after being served with the order.  A 
  3.23  contested case proceeding must then be held in accordance with 
  3.24  chapter 14.  If, within 15 calendar days after being served with 
  3.25  the order, the employer fails to file a written notice of 
  3.26  objection with the commissioner, the order becomes a final order 
  3.27  of the commissioner. 
  3.28     Sec. 5.  Minnesota Statutes 1998, section 184.38, 
  3.29  subdivision 11, is amended to read: 
  3.30     Subd. 11.  No employment agency or its employee may split, 
  3.31  divide, or share, directly or indirectly, any fee, charge, or 
  3.32  compensation received from any employer or applicant with any 
  3.33  employer, or person in any way connected with the employer's 
  3.34  business.  No search firm or its employee may split, divide, or 
  3.35  share, directly or indirectly, any fee, charge, or compensation 
  3.36  received from any employer with any person connected in any way 
  4.1   with the employer's business.  A violation of this subdivision 
  4.2   shall be punished by a fine of not less than $100, and not more 
  4.3   than $3,000, or on failure to pay the fine by imprisonment for a 
  4.4   period not to exceed one year, or both, at the discretion of the 
  4.5   court. 
  4.6      Sec. 6.  Minnesota Statutes 1998, section 184.38, is 
  4.7   amended by adding a subdivision to read: 
  4.8      Subd. 21.  The department may assess a fine of $300 for 
  4.9   each violation of the subdivisions in this section.