1.1                          A bill for an act 
  1.2             relating to employment; regulating eligibility for 
  1.3             unemployment compensation benefits; providing for a 
  1.4             special assessment for interest on federal loans; 
  1.5             providing for extended unemployment compensation 
  1.6             benefits; providing for unemployment insurance and 
  1.7             workforce development fund taxes; providing extended 
  1.8             benefits for airline industry, Fingerhut Companies, 
  1.9             Inc., Farmland Foods Company, and Potlatch Corporation 
  1.10            employees; making housekeeping changes related to the 
  1.11            department of trade and economic development; 
  1.12            requiring an OSHA ergonomics standard; prohibiting 
  1.13            employers from charging certain expenses to employees; 
  1.14            regulating redevelopment grants; allowing foster 
  1.15            parents to take certain leaves; providing certain 
  1.16            youth employment to construct early childhood program 
  1.17            facilities; reinstating a repealed law; providing 
  1.18            unemployment benefits to certain employees doing food 
  1.19            service contract work for school districts; requiring 
  1.20            the public utilities commission to study criteria for 
  1.21            certain energy source acquisitions; requiring a study 
  1.22            on unemployment trust fund solvency by the 
  1.23            unemployment insurance advisory council; regulating 
  1.24            use of state dislocated worker program grants; 
  1.25            amending Minnesota Statutes 2000, sections 48.24, 
  1.26            subdivision 5; 116J.565, subdivision 1; 116J.58, 
  1.27            subdivision 1; 116J.9665, subdivisions 1, 4, 6; 
  1.28            116M.14, subdivision 4; 116M.18, subdivisions 2, 3, 4, 
  1.29            4a, 5, 8, by adding a subdivision; 119A.45; 181.9412, 
  1.30            by adding a subdivision; 268.035, subdivision 24; 
  1.31            268.051, subdivision 8; 298.22, subdivision 7, by 
  1.32            adding a subdivision; Minnesota Statutes 2001 
  1.33            Supplement, sections 116L.17, subdivision 5; 268.022, 
  1.34            subdivision 1; 268.035, subdivision 4; 268.07, 
  1.35            subdivisions 1, 2; Laws 2001, First Special Session 
  1.36            chapter 4, article 1, section 2, subdivision 5; Laws 
  1.37            2001, First Special Session chapter 4, article 2, 
  1.38            section 31; proposing coding for new law in Minnesota 
  1.39            Statutes, chapter 181; repealing Minnesota Statutes 
  1.40            2000, sections 116J.9672; 116J.9673. 
  1.41  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.42                             ARTICLE 1
  1.43                 UNEMPLOYMENT COMPENSATION BENEFITS
  2.1      Section 1.  Minnesota Statutes 2001 Supplement, section 
  2.2   268.035, subdivision 4, is amended to read: 
  2.3      Subd. 4.  [BASE PERIOD.] "Base period" means: 
  2.4      (1) the first four of the last five completed calendar 
  2.5   quarters prior to the effective date of an applicant's benefit 
  2.6   account as set forth below: 
  2.7   If the benefit account is effective     The base period
  2.8   on or between these dates:              is the prior:
  2.9   January 1 - March 31                    October 1 - September 30
  2.10  April 1 - June 30                       January 1 - December 31
  2.11  July 1 - September 30                   April 1 - March 31
  2.12  October 1 - December 31                 July 1 - June 30 
  2.13     (2) if during the base period under clause (1) an applicant 
  2.14  received workers' compensation for temporary disability under 
  2.15  chapter 176 or a similar federal law or similar law of another 
  2.16  state, or if an applicant whose own serious illness caused a 
  2.17  loss of work for which the applicant received compensation for 
  2.18  loss of wages from some other source, the applicant may request 
  2.19  a base period as follows: 
  2.20     (i) if an applicant was compensated for a loss of work of 
  2.21  seven to 13 weeks, the base period shall be the first four of 
  2.22  the last six completed calendar quarters prior to the effective 
  2.23  date of the benefit account; 
  2.24     (ii) if an applicant was compensated for a loss of work of 
  2.25  14 to 26 weeks, the base period shall be the first four of the 
  2.26  last seven completed calendar quarters prior to the effective 
  2.27  date of the benefit account; 
  2.28     (iii) if an applicant was compensated for a loss of work of 
  2.29  27 to 39 weeks, the base period shall be the first four of the 
  2.30  last eight completed calendar quarters prior to the effective 
  2.31  date of the benefit account; and 
  2.32     (iv) if an applicant was compensated for a loss of work of 
  2.33  40 to 52 weeks, the base period shall be the first four of the 
  2.34  last nine completed calendar quarters prior to the effective 
  2.35  date of the benefit account; 
  2.36     (3) if the applicant qualifies for a base period under 
  3.1   clause (2), but has insufficient wage credits to establish a 
  3.2   benefit account under a base period provided for in clause (1) 
  3.3   or (2), the applicant may request a base period of the last four 
  3.4   completed calendar quarters prior to the date the applicant's 
  3.5   benefit account is effective.  This base period may be used only 
  3.6   once during any five-calendar-year period; and 
  3.7      (4) no base period under clause (1), (2), or (3) shall 
  3.8   include wage credits upon which a prior benefit account was 
  3.9   established.  If applicable, the commissioner shall inform an 
  3.10  applicant of the option of a base period under clause (2) or (3).
  3.11     <b>[EFFECTIVE DATE.]</b> This section is effective for benefit 
  3.12  accounts established on or after August 1, 2002. 
  3.13     Sec. 2.  Minnesota Statutes 2000, section 268.051, 
  3.14  subdivision 8, is amended to read: 
  3.15     Subd. 8.  [SOLVENCY SPECIAL ASSESSMENT FOR INTEREST ON 
  3.16  FEDERAL LOAN.] (a) If the fund balance is less than $150,000,000 
  3.17  on June 30 October 31 of any year, the commissioner, in 
  3.18  consultation with the commissioner of finance, determines that 
  3.19  an interest payment will be due during the following calendar 
  3.20  year on any loan from the federal unemployment trust fund under 
  3.21  section 268.194, subdivision 6, a solvency special assessment on 
  3.22  taxpaying employers will be in effect for the following calendar 
  3.23  year.  The taxpaying employer shall pay quarterly a solvency The 
  3.24  legislature authorizes the commissioner, in consultation with 
  3.25  the commissioner of finance, to determine the appropriate level 
  3.26  of the assessment, of ten from two percent to eight percent of 
  3.27  the quarterly unemployment taxes due, that will be necessary to 
  3.28  pay the interest due on the loan. 
  3.29     (b) The solvency special assessment shall be placed into a 
  3.30  special account from which the commissioner shall pay any 
  3.31  interest accruing that has accrued on any loan from the federal 
  3.32  unemployment trust fund provided for under section 268.194, 
  3.33  subdivision 6.  If, at the end of each calendar quarter, the 
  3.34  commissioner, in consultation with the commissioner of finance, 
  3.35  determines that the balance in this special account, including 
  3.36  interest earned on the special account, is more than is 
  4.1   necessary to pay the interest which has accrued on any loan as 
  4.2   of that date, or will accrue over the following calendar 
  4.3   quarter, the commissioner shall immediately pay to the fund the 
  4.4   amount in excess of that necessary to pay the interest on any 
  4.5   loan. 
  4.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  4.7   following final enactment. 
  4.8      Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  4.9   268.07, subdivision 1, is amended to read: 
  4.10     Subdivision 1.  [APPLICATION FOR UNEMPLOYMENT BENEFITS; 
  4.11  DETERMINATION OF BENEFIT ACCOUNT.] (a) An application for 
  4.12  unemployment benefits may be filed in person, by mail, by 
  4.13  telephone, or by electronic transmission as the commissioner 
  4.14  shall require.  The applicant must be unemployed at the time the 
  4.15  application is filed and must provide all requested information 
  4.16  in the manner required.  If the applicant is not unemployed at 
  4.17  the time of the application or fails to provide all requested 
  4.18  information, the communication shall not be considered an 
  4.19  application for unemployment benefits. 
  4.20     (b) The commissioner shall examine each application for 
  4.21  unemployment benefits to determine the base period and the 
  4.22  benefit year, and based upon all the covered employment in the 
  4.23  base period the commissioner shall determine the weekly 
  4.24  unemployment benefit amount available, if any, and the maximum 
  4.25  amount of unemployment benefits available, if any.  The 
  4.26  determination shall be known as the determination of benefit 
  4.27  account.  A determination of benefit account shall be sent to 
  4.28  the applicant and all base period employers, by mail or 
  4.29  electronic transmission. 
  4.30     (c) If a base period employer did not provide wage 
  4.31  information for the applicant as provided for in section 
  4.32  268.044, or the wage information is not yet available because of 
  4.33  a base period under section 268.035, subdivision 4, clause (3), 
  4.34  the commissioner shall accept an applicant certification as to 
  4.35  wage credits, based upon the applicant's records, and issue a 
  4.36  determination of benefit account. 
  5.1      If a determination of benefit account was issued based upon 
  5.2   the applicant's certification as to wage credits because of a 
  5.3   base period under section 268.035, subdivision 4, clause (3), 
  5.4   when the wage information becomes available under section 
  5.5   268.044, the commissioner shall reconsider the determination of 
  5.6   benefit account and, if appropriate, issue an amended 
  5.7   determination. 
  5.8      (d) The commissioner may, at any time within 24 months from 
  5.9   the establishment of a benefit account, reconsider any 
  5.10  determination of benefit account and make an amended 
  5.11  determination if the commissioner finds that the determination 
  5.12  was incorrect for any reason.  An amended determination shall be 
  5.13  promptly sent to the applicant and all base period employers, by 
  5.14  mail or electronic transmission. 
  5.15     If an amended determination of benefit account reduces the 
  5.16  weekly unemployment benefit amount or maximum amount of 
  5.17  unemployment benefits available, any unemployment benefits that 
  5.18  have been paid greater than the applicant was entitled is 
  5.19  considered an overpayment of unemployment benefits under section 
  5.20  268.18, subdivision 1. 
  5.21     <b>[EFFECTIVE DATE.]</b> This section is effective for benefit 
  5.22  accounts established on or after August 1, 2002. 
  5.23     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  5.24  268.07, subdivision 2, is amended to read: 
  5.25     Subd. 2.  [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY 
  5.26  UNEMPLOYMENT BENEFIT AMOUNT AND MAXIMUM AMOUNT OF UNEMPLOYMENT 
  5.27  BENEFITS.] (a) To establish a benefit account, an applicant must 
  5.28  have: 
  5.29     (1) high quarter wage credits of at least $1,000; and 
  5.30     (2) wage credits, in other than the high quarter, of at 
  5.31  least $250 $1,250.  
  5.32     (b) If an applicant has established a benefit account, the 
  5.33  weekly unemployment benefit amount available during the benefit 
  5.34  year shall be the higher of: 
  5.35     (1) 50 percent of the applicant's average weekly wage 
  5.36  during the base period, to a maximum of 66-2/3 percent of the 
  6.1   state's average weekly wage; or 
  6.2      (2) 50 percent of the applicant's average weekly wage 
  6.3   during the high quarter, to a maximum of 50 percent of the 
  6.4   state's average weekly wage. 
  6.5      The applicant's average weekly wage under clause (1) shall 
  6.6   be computed by dividing the total wage credits by 52.  The 
  6.7   applicant's average weekly wage under clause (2) shall be 
  6.8   computed by dividing the high quarter wage credits by 13.  
  6.9      (c) The state's maximum weekly unemployment benefit amount 
  6.10  and the applicant's weekly unemployment benefit amount and 
  6.11  maximum amount of unemployment benefits shall be rounded down to 
  6.12  the next lowest whole dollar.  
  6.13     (d) The maximum amount of unemployment benefits available 
  6.14  on any benefit account shall be the lower of: 
  6.15     (1) 33-1/3 percent of the applicant's total wage credits; 
  6.16  or 
  6.17     (2) 26 times the applicant's weekly unemployment benefit 
  6.18  amount. 
  6.19     <b>[EFFECTIVE DATE.]</b> This section is effective for benefit 
  6.20  accounts established on or after August 1, 2002. 
  6.21     Sec. 5.  [PAYMENT OF SPECIAL STATE TEMPORARY EXTENDED 
  6.22  UNEMPLOYMENT BENEFITS.] 
  6.23     Subdivision 1.  [ELIGIBILITY.] Special state temporary 
  6.24  extended unemployment benefits shall be paid to an applicant who 
  6.25  does not qualify for unemployment benefits under the federal 
  6.26  Temporary Extended Unemployment Compensation Act of 2002 because 
  6.27  the applicant does not meet the requirement under section 
  6.28  202(d)(2)(A) of that act or did not receive the maximum amount 
  6.29  of benefits available under the federal act due to the 
  6.30  expiration of that program.  Special state extended unemployment 
  6.31  benefits shall be paid to individuals who have established a 
  6.32  benefit account effective on or after March 19, 2000, under the 
  6.33  same terms and conditions as apply to federal temporary extended 
  6.34  unemployment compensation.  An applicant may not receive more 
  6.35  than a combined total of 13 times the applicant's weekly benefit 
  6.36  amount available under the federal Temporary Extended 
  7.1   Unemployment Compensation Act and this section. 
  7.2      Subd. 2.  [PAYMENT FROM THE FUND; EFFECT ON 
  7.3   EMPLOYER.] Special state temporary extended unemployment 
  7.4   benefits shall be paid from the Minnesota unemployment insurance 
  7.5   program trust fund.  Special state temporary extended 
  7.6   unemployment benefits paid shall not be used in computing the 
  7.7   future unemployment tax rate of a taxpaying employer nor charged 
  7.8   to the reimbursing account of a government or nonprofit employer.
  7.9      Subd. 3.  [EXPIRATION.] This program expires April 1, 
  7.10  2003.  No payments under this section shall be paid for any week 
  7.11  after the expiration date. 
  7.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  7.13  following final enactment and is retroactive to March 10, 2002. 
  7.14     Sec. 6.  [2003 UNEMPLOYMENT INSURANCE BASE TAX RATE.] 
  7.15     Notwithstanding Minnesota Statutes, section 268.051, 
  7.16  subdivision 2, and Laws 2001, First Special Session chapter 2, 
  7.17  article 2, section 32, subdivision 2, the unemployment insurance 
  7.18  base tax rate for employers is 0.38 percent for calendar year 
  7.19  2003. 
  7.20     Sec. 7.  [CERTAIN EMPLOYERS AND AIRLINE AND RELATED 
  7.21  INDUSTRIES EXTRA BENEFITS.] 
  7.22     Subdivision 1.  [EXTRA BENEFITS; AVAILABILITY.] Extra 
  7.23  unemployment benefits are available to an applicant: 
  7.24     (1) who has a benefit account effective March 11, 2001, or 
  7.25  thereafter if the applicant was laid off due to lack of work 
  7.26  from Northwest Airlines, Sun Country Airlines, Mark Travel 
  7.27  Corporation, Mesaba Airlines, United Airlines, MLT Vacations, 
  7.28  Carlson Wagonlit Travel, LSG Sky Chefs, Air Wisconsin, American 
  7.29  Airlines, American TransAir, Champion Air, Chautaugua Airlines, 
  7.30  Continental Airlines, Emery Worldwide Air, Great Lakes Airlines, 
  7.31  PanAm International, Skyway Airlines, and U.S. Airways; 
  7.32     (2) who was laid off on or after January 1, 2002, due to 
  7.33  lack of work from Fingerhut Companies, Incorporated; 
  7.34     (3) who was laid off due to a lack of work on or after July 
  7.35  8, 2001, from the Farmland Foods Company in Freeborn county; or 
  7.36     (4) who was laid off due to a lack of work on or after 
  8.1   March 18, 2002, from Potlatch Corporation in Crow Wing county.  
  8.2      Subd. 2.  [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 
  8.3   unemployment benefits are payable from the fund.  
  8.4      Subd. 3.  [ELIGIBILITY CONDITIONS.] An applicant described 
  8.5   under subdivision 1, clause (1), is eligible to receive extra 
  8.6   unemployment benefits under this section for any week through 
  8.7   March 15, 2003, an applicant described under subdivision 1, 
  8.8   clauses (2) and (4), is eligible to receive extra unemployment 
  8.9   benefits under this section for any week through January 3, 
  8.10  2004, and an applicant described under subdivision 1, clause 
  8.11  (3), is eligible to receive extra unemployment benefits under 
  8.12  this section for any week through July 1, 2003, if:  
  8.13     (1) a majority of the applicant's wage credits were with an 
  8.14  employer specified under subdivision 1; 
  8.15     (2) the applicant meets the eligibility requirements of 
  8.16  Minnesota Statutes, section 268.085; 
  8.17     (3) the applicant is not subject to a disqualification 
  8.18  under Minnesota Statutes, section 268.095; 
  8.19     (4) the applicant is not entitled to any regular, 
  8.20  additional, or extended unemployment benefits for that week and 
  8.21  the applicant is not entitled to receive unemployment benefits 
  8.22  under any other state or federal law for that week; 
  8.23     (5) the applicant is enrolled in, or has within the last 
  8.24  two weeks successfully completed, a program that qualifies as 
  8.25  reemployment assistance training under the state dislocated 
  8.26  worker program, except that an applicant whose training is 
  8.27  scheduled to begin in more than 30 days may be considered to be 
  8.28  in training if:  (i) the applicant's chosen training program 
  8.29  does not offer an available start date within 30 days; (ii) the 
  8.30  applicant is scheduled to begin training on the earliest 
  8.31  available start date for the chosen training program; and (iii) 
  8.32  the applicant is scheduled to begin training in no more than 60 
  8.33  days; and 
  8.34     (6) an applicant qualifies for a new regular benefit 
  8.35  account at any time after exhausting regular unemployment 
  8.36  benefits as a result of the layoff under subdivision 1, the 
  9.1   applicant must apply for and exhaust entitlement to those new 
  9.2   regular or any other type of unemployment benefits under any 
  9.3   state or federal law. 
  9.4      Subd. 4.  [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 
  9.5   extra unemployment benefits amount available to an applicant is 
  9.6   the same as the applicant's weekly regular unemployment benefit 
  9.7   amount on the benefit account established as a result of a 
  9.8   layoff under subdivision 1. 
  9.9      Subd. 5.  [MAXIMUM AMOUNT OF EXTRA UNEMPLOYMENT 
  9.10  BENEFITS.] The maximum amount of extra unemployment benefits 
  9.11  available is 26 times the applicant's weekly extra unemployment 
  9.12  benefits amount.  Any type of unemployment benefits, under any 
  9.13  state or federal law, the applicant may be entitled to after 
  9.14  exhausting regular unemployment benefits as a result of a layoff 
  9.15  under subdivision 1, shall reduce the maximum amount of extra 
  9.16  unemployment benefits available.  The reduction in total extra 
  9.17  unemployment benefits available shall equal the total amount of 
  9.18  any other type of unemployment benefits available.  
  9.19     Subd. 6.  [PROGRAM EXPIRATION.] This extra unemployment 
  9.20  benefit program expires on January 3, 2004.  No extra 
  9.21  unemployment benefits shall be paid for any week after the 
  9.22  expiration of this program. 
  9.23     Sec. 8.  [EFFECTIVE DATE.] 
  9.24     Section 7 is effective the day following final enactment 
  9.25  and is retroactive to September 16, 2001. 
  9.26                             ARTICLE 2
  9.27    DISLOCATED WORKER AND UNEMPLOYMENT INSURANCE PROGRAM FUNDING
  9.28     Section 1.  Minnesota Statutes 2001 Supplement, section 
  9.29  268.022, subdivision 1, is amended to read: 
  9.30     Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
  9.31  ASSESSMENT.] (a) In addition to all other taxes, assessments, 
  9.32  and payment obligations under chapter 268, each employer, except 
  9.33  an employer making payments in lieu of taxes is liable for a 
  9.34  special assessment levied at the rate of one-tenth of one 
  9.35  percent per year until June 30, 2000, and seven-hundredths of 
  9.36  one percent per year on and after July 1, 2000, on all taxable 
 10.1   wages, as defined in section 268.035, subdivision 24.  The 
 10.2   assessment shall become due and be paid by each employer to the 
 10.3   department on the same schedule and in the same manner as other 
 10.4   taxes. 
 10.5      (b) The special assessment levied under this section shall 
 10.6   not affect the computation of any other taxes, assessments, or 
 10.7   payment obligations due under this chapter. 
 10.8      Sec. 2.  Minnesota Statutes 2000, section 268.035, 
 10.9   subdivision 24, is amended to read: 
 10.10     Subd. 24.  [TAXABLE WAGES.] (a) "Taxable wages" means those 
 10.11  wages paid to an employee in covered employment each calendar 
 10.12  year up to an amount equal to 60 70 percent of the state's 
 10.13  average annual wage, rounded to the nearest $1,000. 
 10.14     (b) Taxable wages includes the amount of wages paid for 
 10.15  covered employment by the employer's predecessor when there has 
 10.16  been an experience rating record transfer under section 268.051, 
 10.17  subdivision 4. 
 10.18     Sec. 3.  Laws 2001, First Special Session chapter 4, 
 10.19  article 2, section 31, is amended to read: 
 10.20     Sec. 31.  [WORKFORCE ENHANCEMENT FEE.] 
 10.21     Subdivision 1.  [FEE.] Notwithstanding Minnesota Statutes, 
 10.22  section 268.022, effective January 1, 2002, the special 
 10.23  assessment under that section on taxable wages as defined in 
 10.24  Minnesota Statutes, section 268.035, subdivision 24, is 
 10.25  suspended until December 31, 2005.  Effective January 1, 2002, 
 10.26  there shall be assessed, in addition to unemployment taxes due 
 10.27  under Minnesota Statutes, section 268.051, a workforce 
 10.28  enhancement fee of .09 .12 percent on taxable wages.  This fee 
 10.29  shall be due and be paid on the same schedule and in the same 
 10.30  manner as unemployment taxes under Minnesota Statutes, section 
 10.31  268.051.  Any amount past due under this section shall be 
 10.32  subject to the same interest and collection provisions as 
 10.33  unemployment taxes.  This fee shall expire on December 31, 2005. 
 10.34     Subd. 2.  [USE OF FUNDS COLLECTED.] An amount equal to 
 10.35  .07 0.1 percent on taxable wages shall be deposited in the 
 10.36  workforce development fund provided for under Minnesota 
 11.1   Statutes, section 268.022, subdivision 2.  An amount equal to 
 11.2   .02 percent on taxable wages, less reimbursement for collection 
 11.3   costs of the total amount of the fee, shall be deposited in the 
 11.4   unemployment insurance technology initiative account provided 
 11.5   for in section 32. 
 11.6      Sec. 4.  [ADVISORY COUNCIL REPORT TRUST FUND SOLVENCY.] 
 11.7      The unemployment insurance advisory council shall present 
 11.8   to the legislature, by January 15, 2003, a report, including 
 11.9   proposals for any legislation, on the long-term solvency of the 
 11.10  Minnesota unemployment insurance program trust fund. 
 11.11     Sec. 5.  [EFFECTIVE DATE.] 
 11.12     Section 2 is effective the day following its final 
 11.13  enactment. 
 11.14                             ARTICLE 3
 11.15            DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT
 11.16                         HOUSEKEEPING BILL
 11.17     Section 1.  Minnesota Statutes 2000, section 48.24, 
 11.18  subdivision 5, is amended to read: 
 11.19     Subd. 5.  Loans or obligations shall not be subject under 
 11.20  this section to any limitation based upon such capital and 
 11.21  surplus to the extent that they are secured or covered by 
 11.22  guarantees, or by commitments or agreements to take over or to 
 11.23  purchase the same, made by: 
 11.24     (1) the commissioner of agriculture on the purchase of 
 11.25  agricultural land; 
 11.26     (2) any Federal Reserve bank; 
 11.27     (3) the United States or any department, bureau, board, 
 11.28  commission, or establishment of the United States, including any 
 11.29  corporation wholly owned directly or indirectly by the United 
 11.30  States; 
 11.31     (4) the Minnesota energy and economic development 
 11.32  authority; or 
 11.33     (5) the Minnesota export finance authority; or 
 11.34     (6) a municipality or political subdivision within 
 11.35  Minnesota to the extent that the guarantee or collateral is a 
 11.36  valid and enforceable general obligation of that political body. 
 12.1      Sec. 2.  Minnesota Statutes 2000, section 116J.58, 
 12.2   subdivision 1, is amended to read: 
 12.3      Subdivision 1.  [ENUMERATION.] The commissioner shall: 
 12.4      (1) investigate, study, and undertake ways and means of 
 12.5   promoting and encouraging the prosperous development and 
 12.6   protection of the legitimate interest and welfare of Minnesota 
 12.7   business, industry, and commerce, within and outside the state; 
 12.8      (2) locate markets for manufacturers and processors and aid 
 12.9   merchants in locating and contacting markets; 
 12.10     (3) investigate and study conditions affecting Minnesota 
 12.11  business, industry, and commerce and collect and disseminate 
 12.12  information, and engage in technical studies, scientific 
 12.13  investigations, and statistical research and educational 
 12.14  activities necessary or useful for the proper execution of the 
 12.15  powers and duties of the commissioner in promoting and 
 12.16  developing Minnesota business, industry, and commerce, both 
 12.17  within and outside the state; 
 12.18     (4) plan and develop an effective business information 
 12.19  service both for the direct assistance of business and industry 
 12.20  of the state and for the encouragement of business and industry 
 12.21  outside the state to use economic facilities within the state; 
 12.22     (5) compile, collect, and develop periodically, or 
 12.23  otherwise make available, information relating to current 
 12.24  business conditions; 
 12.25     (6) conduct or encourage research designed to further new 
 12.26  and more extensive uses of the natural and other resources of 
 12.27  the state and designed to develop new products and industrial 
 12.28  processes; 
 12.29     (7) study trends and developments in the industries of the 
 12.30  state and analyze the reasons underlying the trends; study costs 
 12.31  and other factors affecting successful operation of businesses 
 12.32  within the state; and make recommendations regarding 
 12.33  circumstances promoting or hampering business and industrial 
 12.34  development; 
 12.35     (8) serve as a clearing house for business and industrial 
 12.36  problems of the state; and advise small business enterprises 
 13.1   regarding improved methods of accounting and bookkeeping; 
 13.2      (9) cooperate with interstate commissions engaged in 
 13.3   formulating and promoting the adoption of interstate compacts 
 13.4   and agreements helpful to business, industry, and commerce; 
 13.5      (10) cooperate with other state departments, and with 
 13.6   boards, commissions, and other state agencies, in the 
 13.7   preparation and coordination of plans and policies for the 
 13.8   development of the state and for the use and conservation of its 
 13.9   resources insofar as the use, conservation, and development may 
 13.10  be appropriately directed or influenced by a state agency; 
 13.11     (11) assemble and coordinate information relative to the 
 13.12  status, scope, cost, and employment possibilities and the 
 13.13  availability of materials, equipment, and labor in connection 
 13.14  with public works projects, state, county, and municipal; 
 13.15  recommend limitations on the public works; gather current 
 13.16  progress information with reference to public and private works 
 13.17  projects of the state and its political subdivisions with 
 13.18  reference to conditions of employment; inquire into and report 
 13.19  to the governor, when requested by the governor, with respect to 
 13.20  any program of public state improvements and the financing 
 13.21  thereof; and request and obtain information from other state 
 13.22  departments or agencies as may be needed properly to report 
 13.23  thereon; 
 13.24     (12) study changes in population and current trends and 
 13.25  prepare plans and suggest policies for the development and 
 13.26  conservation of the resources of the state; 
 13.27     (13) confer and cooperate with the executive, legislative, 
 13.28  or planning authorities of the United States and neighboring 
 13.29  states and provinces and of the counties and municipalities of 
 13.30  such neighboring states, for the purpose of bringing about a 
 13.31  coordination between the development of such neighboring 
 13.32  provinces, states, counties, and municipalities and the 
 13.33  development of this state; 
 13.34     (14) generally, gather, compile, and make available 
 13.35  statistical information relating to business, trade, commerce, 
 13.36  industry, transportation, communication, natural resources, and 
 14.1   other like subjects in this state, with authority to call upon 
 14.2   other departments of the state for statistical data and results 
 14.3   obtained by them and to arrange and compile that statistical 
 14.4   information in a manner that seems wise; 
 14.5      (15) prepare an annual report to the legislature estimating 
 14.6   and, to the extent possible, describing the number of Minnesota 
 14.7   companies which have left the state or moved to surrounding 
 14.8   states or other countries.  The report should include an 
 14.9   estimate of the number of jobs lost by these moves, an estimate 
 14.10  of the total employment payroll, average hourly wage of those 
 14.11  jobs lost and those created in the new location, and to the 
 14.12  extent possible, the reasons for each company moving out of 
 14.13  state, if known; 
 14.14     (16) publish documents and annually convene regional 
 14.15  meetings to inform businesses, local government units, 
 14.16  assistance providers, and other interested persons of changes in 
 14.17  state and federal law related to economic development; 
 14.18     (17) (16) annually convene conferences of providers of 
 14.19  economic development related financial and technical assistance 
 14.20  for the purposes of exchanging information on economic 
 14.21  development assistance, coordinating economic development 
 14.22  activities, and formulating economic development strategies; 
 14.23     (18) (17) provide business with information on the economic 
 14.24  benefits of energy conservation and on the availability of 
 14.25  energy conservation assistance; and 
 14.26     (19) (18) prepare, as part of biennial budget process, 
 14.27  performance measures for each business loan or grant program 
 14.28  within the jurisdiction of the commissioner.  Measures would 
 14.29  include source of funds for each program, numbers of jobs 
 14.30  proposed or promised at the time of application and the number 
 14.31  of jobs created, estimated number of jobs retained, the average 
 14.32  salary and benefits for the jobs resulting from the program, and 
 14.33  the number of projects approved. 
 14.34     Sec. 3.  Minnesota Statutes 2000, section 116J.9665, 
 14.35  subdivision 1, is amended to read: 
 14.36     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 15.1   section, the following terms have the meanings given them: 
 15.2      (1) "Conference and service center" means the approximately 
 15.3   20,000 square feet of space on the third and fourth floors of 
 15.4   the Minnesota world trade center that the state of Minnesota has 
 15.5   the right to possess, occupy, and use subject to the terms and 
 15.6   conditions of the development agreement. 
 15.7      (2) "Development agreement" means the agreement entered 
 15.8   into by and between the world trade center board, as agent of 
 15.9   the state of Minnesota, and Oxford Development Minnesota, Inc. 
 15.10  dated July 27, 1984, and the amendments to that agreement, for 
 15.11  development and construction of a world trade center at a 
 15.12  designated site in Minnesota. 
 15.13     (3) (2) "Minnesota world trade center" means the facility 
 15.14  constructed in accordance with the development agreement or 
 15.15  other facilities meeting the membership requirements of the 
 15.16  World Trade Centers Association. 
 15.17     Sec. 4.  Minnesota Statutes 2000, section 116J.9665, 
 15.18  subdivision 4, is amended to read: 
 15.19     Subd. 4.  [DUTIES.] The commissioner shall: 
 15.20     (1) promote and market the Minnesota world trade center and 
 15.21  membership in the World Trade Centers Association; 
 15.22     (2) sponsor conferences or other promotional events in the 
 15.23  conference and service center; 
 15.24     (3) sponsor, develop, and conduct educational programs 
 15.25  related to international trade; 
 15.26     (4) (3) establish and maintain an office in the Minnesota 
 15.27  world trade center; and 
 15.28     (5) (4) not duplicate programs or services provided by the 
 15.29  commissioner of agriculture. 
 15.30     Sec. 5.  Minnesota Statutes 2000, section 116J.9665, 
 15.31  subdivision 6, is amended to read: 
 15.32     Subd. 6.  [WORLD TRADE CENTER ACCOUNT.] The world trade 
 15.33  center account is in the special revenue fund.  All money 
 15.34  received from the use of the conference and service center or 
 15.35  appropriated under this section must be deposited in the 
 15.36  account.  Money in the account including interest earned is 
 16.1   appropriated to the commissioner and must be used exclusively 
 16.2   for the purposes of this section. 
 16.3      Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 16.4   116L.17, subdivision 5, is amended to read: 
 16.5      Subd. 5.  [COST LIMITATIONS.] (a) Funds allocated to a 
 16.6   grantee are subject to the following cost limitations: 
 16.7      (1) no more than ten percent may be allocated for 
 16.8   administration; 
 16.9      (2) at least 50 percent must be allocated for training 
 16.10  assistance as provided in subdivision 4, clause (2); and 
 16.11     (3) no more than 15 percent may be allocated for support 
 16.12  services as provided in subdivision 4, clause (3). 
 16.13     (b) A waiver of the training assistance minimum in clause 
 16.14  (2) may be sought, but no waiver shall allow less than 30 
 16.15  percent of the grant to be spent on training assistance.  A 
 16.16  waiver of the support services maximum in clause (3) may be 
 16.17  sought, but no waiver shall allow more than 20 percent of the 
 16.18  grant to be spent on support services.  A waiver may be granted 
 16.19  below the minimum and above the maximum otherwise allowed by 
 16.20  this paragraph if funds other than state funds appropriated for 
 16.21  the dislocated worker program are used to fund training 
 16.22  assistance. 
 16.23     Sec. 7.  Minnesota Statutes 2000, section 116M.14, 
 16.24  subdivision 4, is amended to read: 
 16.25     Subd. 4.  [LOW-INCOME AREA.] "Low-income area" means 
 16.26  Minneapolis, St. Paul, and inner ring suburbs as defined by the 
 16.27  metropolitan council that had a median household income below 
 16.28  $31,000 as reported in the 1990 census those cities in the 
 16.29  metropolitan area as defined in section 473.121, subdivision 2, 
 16.30  that have an average income that is below 60 percent of the 
 16.31  median income for a four-person family as of the latest report 
 16.32  by the United States Census Bureau. 
 16.33     Sec. 8.  Minnesota Statutes 2000, section 116M.18, 
 16.34  subdivision 2, is amended to read: 
 16.35     Subd. 2.  [CHALLENGE GRANT ELIGIBILITY; NONPROFIT 
 16.36  CORPORATION.] The board may enter into agreements with nonprofit 
 17.1   corporations to fund and guarantee loans the nonprofit 
 17.2   corporation makes in low-income areas under subdivision 4.  A 
 17.3   corporation must demonstrate that:  
 17.4      (1) its board of directors includes citizens experienced in 
 17.5   development, minority business enterprises, and creating jobs in 
 17.6   low-income areas; 
 17.7      (2) it has the technical skills to analyze projects; 
 17.8      (3) it is familiar with other available public and private 
 17.9   funding sources and economic development programs; 
 17.10     (4) it can initiate and implement economic development 
 17.11  projects; 
 17.12     (5) it can establish and administer a revolving loan 
 17.13  account; and 
 17.14     (6) it can work with job referral networks which assist 
 17.15  minority and other persons in low-income areas. 
 17.16     Sec. 9.  Minnesota Statutes 2000, section 116M.18, 
 17.17  subdivision 3, is amended to read: 
 17.18     Subd. 3.  [REVOLVING LOAN FUND.] (a) The board shall 
 17.19  establish a revolving loan fund to make grants to nonprofit 
 17.20  corporations for the purpose of making loans and loan guarantees 
 17.21  to new and expanding businesses in a low-income area to promote 
 17.22  minority business enterprises and job creation for minority and 
 17.23  other persons in low-income areas.  
 17.24     (b) Eligible business enterprises include, but are not 
 17.25  limited to, technologically innovative industries, value-added 
 17.26  manufacturing, and information industries.  Loan applications 
 17.27  given preliminary approval by the nonprofit corporation must be 
 17.28  forwarded to the board for approval.  The commissioner must give 
 17.29  final approval for each loan or loan guarantee made by the 
 17.30  nonprofit corporation.  The amount of a grant the state funds 
 17.31  contributed to any loan or loan guarantee may not exceed 50 
 17.32  percent of each loan.  The amount of nonstate money must equal 
 17.33  at least 50 percent for each loan. 
 17.34     Sec. 10.  Minnesota Statutes 2000, section 116M.18, 
 17.35  subdivision 4, is amended to read: 
 17.36     Subd. 4.  [BUSINESS LOAN CRITERIA.] (a) The criteria in 
 18.1   this subdivision apply to loans made or guaranteed by nonprofit 
 18.2   corporations under the urban challenge grant program.  
 18.3      (b) Loans or guarantees must be made to businesses that are 
 18.4   not likely to undertake a project for which loans are sought 
 18.5   without assistance from the urban challenge grant program.  
 18.6      (c) A loan or guarantee must be used for a project designed 
 18.7   to benefit persons in low-income areas through the creation of 
 18.8   job or business opportunities for them.  Priority must be given 
 18.9   for loans to the lowest income areas.  
 18.10     (d) The minimum state contribution to a loan or guarantee 
 18.11  is $5,000 and the maximum is $150,000. 
 18.12     (e) A loan The state contribution must be matched by at 
 18.13  least an equal amount of new private investment.  
 18.14     (f) A loan may not be used for a retail development project.
 18.15     (g) The business must agree to work with job referral 
 18.16  networks that focus on minority applicants from low-income areas.
 18.17     Sec. 11.  Minnesota Statutes 2000, section 116M.18, 
 18.18  subdivision 4a, is amended to read: 
 18.19     Subd. 4a.  [MICROENTERPRISE LOAN.] Urban challenge grants 
 18.20  may be used to make microenterprise loans to small, beginning 
 18.21  businesses, including a sole proprietorship.  Microenterprise 
 18.22  loans are subject to this section except that: 
 18.23     (1) they may also be made to qualified retail businesses; 
 18.24     (2) they may be made for a minimum of $1,000 and a maximum 
 18.25  of $10,000 $25,000; and 
 18.26     (3) they do not require a match. 
 18.27     Sec. 12.  Minnesota Statutes 2000, section 116M.18, 
 18.28  subdivision 5, is amended to read: 
 18.29     Subd. 5.  [REVOLVING FUND ADMINISTRATION; RULES.] (a) The 
 18.30  board shall establish a minimum interest rate for loans or 
 18.31  guarantees to ensure that necessary loan administration costs 
 18.32  are covered.  
 18.33     (b) Loan repayment amounts equal to one-half of the 
 18.34  principal and interest must be deposited in a revolving fund 
 18.35  created by the board for challenge grants.  The remaining amount 
 18.36  of the loan repayment may be deposited in a revolving loan fund 
 19.1   created by the nonprofit corporation originating the loan being 
 19.2   repaid for further distribution, consistent with the loan 
 19.3   criteria specified in subdivision 4.  
 19.4      (c) Administrative expenses of the board and nonprofit 
 19.5   corporations with whom the board enters into agreements under 
 19.6   subdivision 2, including expenses incurred by a nonprofit 
 19.7   corporation in providing financial, technical, managerial, and 
 19.8   marketing assistance to a business enterprise receiving a loan 
 19.9   under subdivision 4, may be paid out of the interest earned on 
 19.10  loans and out of interest earned on money invested by the state 
 19.11  board of investment under section 116M.16, subdivision 2, as may 
 19.12  be provided by the board.  
 19.13     Sec. 13.  Minnesota Statutes 2000, section 116M.18, is 
 19.14  amended by adding a subdivision to read: 
 19.15     Subd. 6a.  [NONPROFIT CORPORATION LOANS.] The board may 
 19.16  make loans to a nonprofit corporation with which it has entered 
 19.17  into an agreement under subdivision 1.  These loans must be used 
 19.18  to support a new or expanding business.  This support may 
 19.19  include such forms of financing as the sale of goods to the 
 19.20  business on installment or deferred payments, lease purchase 
 19.21  agreements, or royalty investments in the business.  The 
 19.22  nonprofit corporation must provide at least an equal match to 
 19.23  the loan received by the board.  The maximum loan available to 
 19.24  the nonprofit corporation under this subdivision is $50,000.  
 19.25  Loans made to the nonprofit corporation under this subdivision 
 19.26  may be made without interest.  Repayments made by the nonprofit 
 19.27  corporation must be deposited in the revolving fund created for 
 19.28  urban initiative grants. 
 19.29     Sec. 14.  Minnesota Statutes 2000, section 116M.18, 
 19.30  subdivision 8, is amended to read: 
 19.31     Subd. 8.  [REPORTING REQUIREMENTS.] A nonprofit corporation 
 19.32  that receives a challenge grant shall:  
 19.33     (1) submit an annual report to the board by September 30 of 
 19.34  each year that includes a description of projects supported by 
 19.35  the urban challenge grant program, an account of loans made 
 19.36  during the calendar year, the program's impact on minority 
 20.1   business enterprises and job creation for minority persons and 
 20.2   persons in low-income areas, the source and amount of money 
 20.3   collected and distributed by the urban challenge grant program, 
 20.4   the program's assets and liabilities, and an explanation of 
 20.5   administrative expenses; and 
 20.6      (2) provide for an independent annual audit to be performed 
 20.7   in accordance with generally accepted accounting practices and 
 20.8   auditing standards and submit a copy of each annual audit report 
 20.9   to the board. 
 20.10     Sec. 15.  Minnesota Statutes 2000, section 298.22, 
 20.11  subdivision 7, is amended to read: 
 20.12     Subd. 7.  [GIANTS RIDGE RECREATION AREA PROJECT AREA 
 20.13  DEVELOPMENT AUTHORITY.] (a) In addition to the other powers 
 20.14  granted in this section and other law and notwithstanding any 
 20.15  limitations contained in subdivision 5, the commissioner, for 
 20.16  purposes of fostering economic development and tourism within 
 20.17  the Giants Ridge recreation area or the Ironworld Discovery 
 20.18  Center area, may spend any money made available to the agency 
 20.19  under section 298.28 to acquire real or personal property or 
 20.20  interests therein by gift, purchase, or lease and may convey by 
 20.21  lease, sale, or other means of conveyance or commitment any or 
 20.22  all of those property interests acquired owned or administered 
 20.23  by the commissioner within such areas.  
 20.24     (b) In furtherance of development of the Giants Ridge 
 20.25  recreation area or the Ironworld Discovery Center area, the 
 20.26  commissioner may establish and participate in charitable 
 20.27  foundations and nonprofit corporations, including a corporation 
 20.28  within the meaning of section 317A.011, subdivision 6. 
 20.29     (c) The term "Giants Ridge recreation area" refers to an 
 20.30  economic development project area established by the 
 20.31  commissioner in furtherance of the powers delegated in this 
 20.32  section within St. Louis county in the western portions of the 
 20.33  town of White and in the eastern portion of the westerly, 
 20.34  adjacent, unorganized township. 
 20.35     (d) The term "Ironworld Discovery Center area" refers to an 
 20.36  economic development and tourism promotion project area 
 21.1   established by the commissioner in furtherance of the powers 
 21.2   delegated in this section within St. Louis county in the south 
 21.3   portion of the town of Balkan. 
 21.4      Sec. 16.  Minnesota Statutes 2000, section 298.22, is 
 21.5   amended by adding a subdivision to read: 
 21.6      Subd. 9.  [ECONOMIC DEVELOPMENT AND TRADE PROMOTION.] In 
 21.7   the promotion of tourism, trade, and economic development, the 
 21.8   commissioner may expend money made available to the agency under 
 21.9   section 298.28 in the same manner as private persons, firms, 
 21.10  corporations, and associations make expenditures for these 
 21.11  purposes.  An expenditure for food, lodging, or travel is not 
 21.12  governed by the travel rules of the commissioner of employee 
 21.13  relations. 
 21.14     Sec. 17.  Laws 2001, First Special Session chapter 4, 
 21.15  article 1, section 2, subdivision 5, is amended to read: 
 21.16  Subd. 5.  Office of Tourism 
 21.17     10,219,000      10,111,000 
 21.18  To develop maximum private sector 
 21.19  involvement in tourism, $3,500,000 the 
 21.20  first year and $3,500,000 the second 
 21.21  year of the amounts appropriated for 
 21.22  marketing activities are contingent on 
 21.23  receipt of an equal contribution from 
 21.24  nonstate sources that have been 
 21.25  certified by the commissioner.  Up to 
 21.26  one-half of the match may be given in 
 21.27  in-kind contributions. 
 21.28  In order to maximize marketing grant 
 21.29  benefits, the commissioner must give 
 21.30  priority for joint venture marketing 
 21.31  grants to organizations with year-round 
 21.32  sustained tourism activities.  For 
 21.33  programs and projects submitted, the 
 21.34  commissioner must give priority to 
 21.35  those that encompass two or more areas 
 21.36  or that attract nonresident travelers 
 21.37  to the state. 
 21.38  If an appropriation for either year for 
 21.39  grants is not sufficient, the 
 21.40  appropriation for the other year is 
 21.41  available for it. 
 21.42  The commissioner may use grant dollars 
 21.43  or the value of in-kind services to 
 21.44  provide the state contribution for the 
 21.45  partnership program. 
 21.46  Any unexpended money from general fund 
 21.47  appropriations made under this 
 21.48  subdivision does not cancel but must be 
 21.49  placed in a special advertising account 
 21.50  for use by the office of tourism to 
 22.1   purchase additional media. 
 22.2   Of this amount, $50,000 the first year 
 22.3   is for a one-time grant to the 
 22.4   Mississippi River parkway commission to 
 22.5   support the increased promotion of 
 22.6   tourism along the Great River Road. 
 22.7   $829,000 the first year and $829,000 
 22.8   the second year are for the Minnesota 
 22.9   film board.  $329,000 of this 
 22.10  appropriation in each year is available 
 22.11  only upon receipt by the board of $1 in 
 22.12  matching contributions of money or 
 22.13  in-kind from nonstate sources for every 
 22.14  $3 provided by this appropriation.  Of 
 22.15  this amount, $500,000 the first year 
 22.16  and $500,000 the second year are for 
 22.17  grants to the Minnesota film board for 
 22.18  a film production jobs fund to 
 22.19  stimulate film production in 
 22.20  Minnesota.  This appropriation is to 
 22.21  reimburse film and television producers 
 22.22  for up to ten percent of the documented 
 22.23  wages and cost of services that they 
 22.24  paid to Minnesotans for film and 
 22.25  television production after January 1, 
 22.26  2001. 
 22.27  $150,000 the first year is for 
 22.28  partnerships with local tourism 
 22.29  interests to operate travel information 
 22.30  centers.  This is a one-time 
 22.31  appropriation.  This appropriation is 
 22.32  available until June 30, 2003. 
 22.33     Sec. 18.  [REINSTATEMENT OF LAW.] 
 22.34     Notwithstanding its repeal by Laws 2001, First Special 
 22.35  Session chapter 4, article 2, section 41, Minnesota Statutes 
 22.36  2000, section 268.976, as amended by Laws 2001, chapter 175, 
 22.37  section 50, is revived. 
 22.38     Sec. 19.  [REPEALER.] 
 22.39     Minnesota Statutes 2000, sections 116J.9672; and 116J.9673, 
 22.40  are repealed. 
 22.41                             ARTICLE 4
 22.42                             ERGONOMICS
 22.43     Section 1.  [ERGONOMICS; OSHA STANDARD.] 
 22.44     (a) The commissioner of labor and industry shall, by June 
 22.45  30, 2004, adopt a final occupational safety and health standard 
 22.46  regulating workplace ergonomic hazards under Minnesota Statutes, 
 22.47  section 182.655, subdivision 4, to prevent work-related 
 22.48  musculoskeletal disorders.  The standard shall, at a minimum, 
 22.49  address exposure to the following ergonomic risk factors: 
 22.50     (1) awkward postures; 
 23.1      (2) force; 
 23.2      (3) repetitive motion; 
 23.3      (4) repeated impacts; 
 23.4      (5) heavy, frequent, or awkward lifting; and 
 23.5      (6) vibration. 
 23.6      (b) The standard shall emphasize the prevention of injuries 
 23.7   before they occur and cover all industries where workers are 
 23.8   exposed to workplace ergonomic hazards and where there are 
 23.9   economically reasonable and technologically feasible measures to 
 23.10  control these hazards that can be implemented over time. 
 23.11     (c) The standard shall be based upon employer and industry 
 23.12  practices that have effectively reduced exposures to ergonomic 
 23.13  hazards and the occurrence of work-related musculoskeletal 
 23.14  disorders. 
 23.15                             ARTICLE 5
 23.16                         BACKGROUND CHECKS
 23.17     Section 1.  [181.645] [EXPENSES FOR BACKGROUND CHECKS, 
 23.18  TESTING, AND ORIENTATION.] 
 23.19     Except as provided by section 123B.03 or as otherwise 
 23.20  specifically provided by law, an employer, as defined in section 
 23.21  181.931, or a prospective employer may not require an employee 
 23.22  or prospective employee to pay for expenses incurred in criminal 
 23.23  or background checks, credit checks, or orientation.  An 
 23.24  employer or prospective employer may not require an employee or 
 23.25  prospective employee to pay for the expenses of training or 
 23.26  testing that is required by federal or state law or is required 
 23.27  by the employer for the employee to maintain the employee's 
 23.28  current position, unless the training or testing is required to 
 23.29  obtain or maintain a license, registration, or certification for 
 23.30  the employee or prospective employee. 
 23.31                             ARTICLE 6
 23.32                        REDEVELOPMENT GRANTS
 23.33     Section 1.  Minnesota Statutes 2000, section 116J.565, 
 23.34  subdivision 1, is amended to read: 
 23.35     Subdivision 1.  [CHARACTERISTICS.] (a) If applications for 
 23.36  grants exceed the available appropriations, grants shall be made 
 24.1   for sites that, in the commissioner's judgment, provide the 
 24.2   highest return in public benefits for the public costs 
 24.3   incurred.  In making this judgment, the commissioner shall give 
 24.4   priority to redevelopment projects with one or more of the 
 24.5   following characteristics: 
 24.6      (1) the need for redevelopment in conjunction with 
 24.7   contamination remediation needs; 
 24.8      (2) the redevelopment project meets current tax increment 
 24.9   financing requirements for a redevelopment district and tax 
 24.10  increments will contribute to the project; 
 24.11     (3) the redevelopment potential within the municipality; 
 24.12     (4) proximity to public transit if located in the 
 24.13  metropolitan area; and 
 24.14     (5) multijurisdictional projects that take into account the 
 24.15  need for affordable housing, transportation, and environmental 
 24.16  impact. 
 24.17     (b) The factors in paragraph (a), clauses (1) to (5), are 
 24.18  not listed in a rank order of priority; rather the commissioner 
 24.19  may weigh each factor, depending upon the facts and 
 24.20  circumstances, as the commissioner considers appropriate.  The 
 24.21  commissioner may consider other factors that affect the net 
 24.22  return of public benefits for completion of the redevelopment 
 24.23  plan.  The commissioner, notwithstanding the listing of 
 24.24  priorities and the goal of maximizing the return of public 
 24.25  benefits, shall make grants that distribute available money to 
 24.26  sites both within and outside of the metropolitan area.  The 
 24.27  commissioner shall provide a written statement of the supporting 
 24.28  reasons for each grant.  Unless sufficient applications are not 
 24.29  received within the first nine months of a fiscal year for 
 24.30  qualifying sites outside of the metropolitan area, at least 25 
 24.31  50 percent of the money provided as grants in a fiscal year must 
 24.32  be made for sites located outside of the metropolitan area.  The 
 24.33  commissioner shall consult with the metropolitan council about 
 24.34  metropolitan area grants. 
 24.35     Sec. 2.  [BROWNFIELD SITE; ACQUISITION.] 
 24.36     Funds in the redevelopment accounts created in Minnesota 
 25.1   Statutes, section 116J.561, and allocated for sites within the 
 25.2   metropolitan area may be used for the purchase of a brownfield 
 25.3   site for a facility to house the department of military affairs' 
 25.4   training and community center. 
 25.5                              ARTICLE 7
 25.6                            PARENTAL LEAVE
 25.7      Section 1.  Minnesota Statutes 2000, section 181.9412, is 
 25.8   amended by adding a subdivision to read: 
 25.9      Subd. 1a.  [FOSTER CHILD.] For the purpose of this section, 
 25.10  "child" includes a foster child. 
 25.11                             ARTICLE 8
 25.12                          YOUTH EMPLOYMENT
 25.13     Section 1.  Minnesota Statutes 2000, section 119A.45, is 
 25.14  amended to read: 
 25.15     119A.45 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
 25.16  FACILITIES.] 
 25.17     Subdivision 1.  [GENERALLY.] The commissioner may make 
 25.18  grants to state agencies and political subdivisions to construct 
 25.19  or rehabilitate facilities for early childhood programs, with 
 25.20  priority to centers in counties or municipalities with the 
 25.21  highest percentage of children living in poverty.  The 
 25.22  commissioner may also make grants to state agencies and 
 25.23  political subdivisions to construct or rehabilitate facilities 
 25.24  for crisis nurseries or parenting time centers.  The facilities 
 25.25  must be owned by the state or a political subdivision, but may 
 25.26  be leased under section 16A.695 to organizations that operate 
 25.27  the programs.  The commissioner must prescribe the terms and 
 25.28  conditions of the leases.  A grant for an individual facility 
 25.29  must not exceed $200,000 for each program that is housed in the 
 25.30  facility, up to a maximum of $500,000 for a facility that houses 
 25.31  three programs or more.  Programs include Head Start, early 
 25.32  childhood and family education programs, and other early 
 25.33  childhood intervention programs.  The commissioner must give 
 25.34  priority to grants that involve collaboration among sponsors of 
 25.35  programs under this section and may give priority to projects 
 25.36  that collaborate with child care providers, including all-day 
 26.1   and school-age child care programs, special needs care, sick 
 26.2   child care, nontraditional hour care, and programs that include 
 26.3   services to refugee and immigrant families.  The commissioner 
 26.4   may give priority to grants for programs that will increase 
 26.5   their child care workers' wages as a result of the grant.  
 26.6      Subd. 2.  [YOUTHBUILD OR YOUTH EMPLOYMENT INVOLVEMENT.] (a) 
 26.7   Of each grant awarded, at least 25 percent of the amounts 
 26.8   appropriated for these grants up to or $50,000, whichever is 
 26.9   less, must utilize youthbuild under sections 268.361 to 268.366 
 26.10  or other youth employment and training programs for the labor 
 26.11  portion of the construction.  
 26.12     (b) All proposals for grants under this section must 
 26.13  include a letter of support from an eligible youthbuild or youth 
 26.14  employment program in which the program agrees to provide labor 
 26.15  adequate to fulfill the requirements of this section.  
 26.16  Preference shall be given to applications that have the support 
 26.17  and prospective involvement of a youthbuild program rather than 
 26.18  another youth employment program, and to applications that use a 
 26.19  larger amount of the grant for youthbuild or youth employment 
 26.20  than is required by this section.  The support letter must 
 26.21  detail:  (1) the youths' and supervisors' construction work 
 26.22  duties to be performed on the construction project; (2) the 
 26.23  approximate construction project start date and length of 
 26.24  involvement for the youthbuild or youth employment agency; and 
 26.25  (3) the amount, terms, and date of dispersal of grant funds 
 26.26  awarded to the youthbuild or youth employment agency. 
 26.27     (c) The youthbuild or youth employment program must be 
 26.28  consulted prior to selection of a general contractor.  Any 
 26.29  contract between a recipient of a grant under this section and a 
 26.30  general contract for the construction of a project for which the 
 26.31  grant is given must detail the youthbuild or youth employment 
 26.32  involvement anticipated for the project. 
 26.33     Subd. 3.  [LABOR ORGANIZATIONS.] Eligible programs must 
 26.34  consult with appropriate labor organizations to deliver 
 26.35  education and training.  
 26.36     Subd. 4.  [MATCHING REQUIREMENT.] State appropriations must 
 27.1   be matched on a 50 percent basis with nonstate funds.  The 
 27.2   matching requirement must apply programwide and not to 
 27.3   individual grants. 
 27.4                              ARTICLE 9
 27.5                     ENERGY ACQUISITION CRITERIA
 27.6      Section 1.  [DEFINITIONS.] 
 27.7      Subdivision 1.  [SCOPE.] The terms used in sections 1 to 3 
 27.8   have the meanings given them in this section. 
 27.9      Subd. 2.  [COMPETITIVE BIDDING PROCESS.] "Competitive 
 27.10  bidding process" means the process by which a request for 
 27.11  proposals is administered and evaluated. 
 27.12     Subd. 3.  [REQUESTING UTILITY.] "Requesting utility" is any 
 27.13  public utility that, as of January 1, 2002, was subject to a 
 27.14  public utilities commission order to acquire energy resources 
 27.15  through a competitive bidding process.  
 27.16     Subd. 4.  [REQUEST FOR PROPOSALS.] "Request for proposals" 
 27.17  means an all-source supply proposal.  
 27.18     Sec. 2.  [REQUEST FOR PROPOSALS; FREEZE.] 
 27.19     A requesting utility must not initiate a new request for 
 27.20  proposals until the earlier of January 15, 2003, or when the 
 27.21  public utilities commission completes its investigation and 
 27.22  determination under section 3.  
 27.23     Sec. 3.  [CRITERIA; COMMISSION INVESTIGATION.] 
 27.24     The public utilities commission must, by September 15, 
 27.25  2002, investigate and determine, by order, the appropriate 
 27.26  criteria to be used in selecting proposals responding to a 
 27.27  request for proposals.  The criteria considered for 
 27.28  appropriateness must include, without limitation, existing 
 27.29  criteria used by the commission and the following: 
 27.30     (1) the competitiveness and long-term stability of the 
 27.31  proposed price of the capacity and energy for the proposed 
 27.32  project; 
 27.33     (2) reduction of air emissions, particularly mercury, 
 27.34  sulfur dioxide, nitrogen oxides, particulate matter, and 
 27.35  greenhouse gas emissions, through the use of innovative 
 27.36  technology and significant renewable capacity installations, and 
 28.1   reduction of other environmental impacts, including the reuse of 
 28.2   and cleanup or reclamation of existing industrial sites; 
 28.3      (3) the jurisdiction of state policymakers over the 
 28.4   emissions and other environmental impacts of the project; 
 28.5      (4) the project's fuel flexibility and contribution to 
 28.6   reducing long-term reliance on natural gas for nonpeaking power 
 28.7   generation; 
 28.8      (5) the project's utilization of technology that can be 
 28.9   configured to produce hydrogen for fuel cells and other gases 
 28.10  and products having the potential to attract further industry, 
 28.11  investment, and jobs to the state; and 
 28.12     (6) the project's potential for job creation and other 
 28.13  economic benefits in economically depressed regions within the 
 28.14  state and local support for the generation facilities of the 
 28.15  project.  
 28.16     This section does not require the inclusion or exclusion of 
 28.17  any particular criteria.  
 28.18     Sec. 4.  [EFFECTIVE DATE.] 
 28.19     This article is effective the day following final enactment.