1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             economic development, housing, and certain agencies of 
  1.4             state government; modifying programs; regulating 
  1.5             activities and practices; modifying penalty 
  1.6             provisions; changing terms; authorizing a registration 
  1.7             fee; modifying displaced homemaker provisions; 
  1.8             increasing the petroleum inspection fee; amending 
  1.9             Minnesota Statutes 2002, sections 79.56, subdivisions 
  1.10            1, 3; 124D.68, subdivision 2; 175.16, subdivision 1; 
  1.11            177.26, subdivisions 1, 2; 178.01; 178.03, 
  1.12            subdivisions 1, 2; 181.9435, subdivision 1; 181.9436; 
  1.13            239.10, subdivision 3; 239.101, subdivision 3; 
  1.14            256D.05, subdivision 1; 256J.49, subdivision 13; 
  1.15            268.0111, subdivision 4; 268.665, subdivision 2; 
  1.16            354D.02, subdivision 2; proposing coding for new law 
  1.17            in Minnesota Statutes, chapter 178; repealing 
  1.18            Minnesota Statutes 2002, sections 138.91; 177.26, 
  1.19            subdivision 3; 178.11; 268.96. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21                             ARTICLE 1 
  1.22                           APPROPRIATIONS 
  1.23                        ECONOMIC DEVELOPMENT 
  1.24  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  1.25     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.26  appropriated from the general fund, or another named fund, to 
  1.27  the agencies and for the purposes specified in this act, to be 
  1.28  available for the fiscal years indicated for each purpose.  The 
  1.29  figures "2004" and "2005," where used in this act, mean that the 
  1.30  appropriation or appropriations listed under them are available 
  1.31  for the year ending June 30, 2004, or June 30, 2005, 
  1.32  respectively.  The term "first year" means the fiscal year 
  2.1   ending June 30, 2004, and the term "second year" means the 
  2.2   fiscal year ending June 30, 2005. 
  2.3                           SUMMARY BY FUND
  2.4                             2004          2005           TOTAL
  2.5   General            $  157,859,000 $  156,538,000 $  314,397,000
  2.6   Petroleum Tank 
  2.7   Cleanup                 1,084,000      1,084,000      2,168,000
  2.8   Environmental 
  2.9   Fund                      700,000        700,000      1,400,000
  2.10  Workers'  
  2.11  Compensation           19,843,000     18,933,000     38,776,000
  2.12  Special Revenue 
  2.13  Fund                    7,720,000      7,720,000     15,440,000
  2.14  TOTAL              $  187,206,000 $  184,975,000 $  372,181,000
  2.15                                             APPROPRIATIONS 
  2.16                                         Available for the Year 
  2.17                                             Ending June 30 
  2.18                                            2004         2005 
  2.19  Sec. 2.  TRADE AND ECONOMIC  
  2.20  DEVELOPMENT 
  2.21  Subdivision 1.  Total 
  2.22  Appropriation                     $   63,115,000 $   62,715,000
  2.23                Summary by Fund
  2.24  General              54,695,000    54,295,000
  2.25  Environmental Fund      700,000       700,000
  2.26  Special Revenue 
  2.27  Fund                  7,720,000     7,720,000
  2.28  The amounts that may be spent from this 
  2.29  appropriation for each program are 
  2.30  specified in the following subdivisions.
  2.31  Subd. 2.  Business and Community 
  2.32  Development                            7,649,000      7,644,000 
  2.33                Summary by Fund
  2.34  General               6,949,000     6,944,000
  2.35  Environmental Fund      700,000       700,000
  2.36  $3,867,000 the first year and 
  2.37  $3,867,000 the second year are for 
  2.38  Minnesota investment fund grants. 
  2.39  Subd. 3.  Minnesota Trade   
  2.40  Office                                 2,187,000      2,187,000 
  2.41  Subd. 4.  Workforce Development        8,035,000      8,035,000 
  2.42  $8,035,000 the first year and 
  2.43  $8,035,000 the second year are for the 
  2.44  job skills partnership program.  If the 
  2.45  appropriation for either year is 
  2.46  insufficient, the appropriation for the 
  3.1   other year is available.  This 
  3.2   appropriation does not cancel. 
  3.3   Subd. 5.  Office of Tourism            8,391,000      8,384,000 
  3.4   To develop maximum private sector 
  3.5   involvement in tourism, $3,500,000 the 
  3.6   first year and $3,500,000 the second 
  3.7   year of the amounts appropriated for 
  3.8   marketing activities are contingent on 
  3.9   receipt of an equal contribution from 
  3.10  nonstate sources that have been 
  3.11  certified by the commissioner.  Up to 
  3.12  one-half of the match may be given in 
  3.13  in-kind contributions. 
  3.14  In order to maximize marketing grant 
  3.15  benefits, the commissioner must give 
  3.16  priority for joint venture marketing 
  3.17  grants to organizations with year-round 
  3.18  sustained tourism activities.  For 
  3.19  programs and projects submitted, the 
  3.20  commissioner must give priority to 
  3.21  those that encompass two or more areas 
  3.22  or that attract nonresident travelers 
  3.23  to the state. 
  3.24  If an appropriation for either year for 
  3.25  grants is not sufficient, the 
  3.26  appropriation for the other year is 
  3.27  available for it. 
  3.28  The commissioner may use grant dollars 
  3.29  or the value of in-kind services to 
  3.30  provide the state contribution for the 
  3.31  partnership program. 
  3.32  Any unexpended money from general fund 
  3.33  appropriations made under this 
  3.34  subdivision does not cancel but must be 
  3.35  placed in a special advertising account 
  3.36  for use by the office of tourism to 
  3.37  purchase additional media. 
  3.38  Subd. 6.  Administration               5,229,000      4,841,000 
  3.39  Subd. 7.  Workforce Services           7,472,000      7,472,000 
  3.40                Summary by Fund
  3.41  General               6,697,000     6,697,000
  3.42  Special Revenue         775,000       775,000
  3.43  Subd. 8.  Rehabilitation Services     20,333,000     20,333,000 
  3.44                Summary by Fund
  3.45  General              13,388,000    13,388,000
  3.46  Special Revenue       6,945,000     6,945,000
  3.47  Subd. 9.  State Services for
  3.48  the Blind                              3,819,000      3,819,000 
  3.49  Sec. 3.  HOUSING FINANCE AGENCY   
  3.50  Subdivision 1.  Total  
  3.51  Appropriation                         34,735,000     34,735,000 
  3.52  The amounts that may be spent from this 
  4.1   appropriation for certain programs are 
  4.2   specified in the following 
  4.3   subdivisions.  This appropriation is 
  4.4   for transfer to the housing development 
  4.5   fund for the programs specified.  
  4.6   Except as otherwise indicated, this 
  4.7   transfer is part of the agency's 
  4.8   permanent budget base. 
  4.9   Subd. 2.  Affordable Rental Investment 
  4.10  Fund 
  4.11  $9,273,000 the first year and 
  4.12  $9,273,000 the second year are for the 
  4.13  affordable rental investment fund 
  4.14  program under Minnesota Statutes, 
  4.15  section 462A.21, subdivision 8b.  These 
  4.16  amounts are to finance the acquisition, 
  4.17  rehabilitation, and debt restructuring 
  4.18  of federally assisted rental property 
  4.19  and for making equity take-out loans 
  4.20  under Minnesota Statutes, section 
  4.21  462A.05, subdivision 39.  The owner of 
  4.22  the federally assisted rental property 
  4.23  must agree to participate in the 
  4.24  applicable federally assisted housing 
  4.25  program and to extend any existing 
  4.26  low-income affordability restrictions 
  4.27  on the housing for the maximum term 
  4.28  permitted.  The owner must also enter 
  4.29  into an agreement that gives local 
  4.30  units of government, housing and 
  4.31  redevelopment authorities, and 
  4.32  nonprofit housing organizations the 
  4.33  right of first refusal if the rental 
  4.34  property is offered for sale.  Priority 
  4.35  must be given among comparable 
  4.36  properties to properties with the 
  4.37  longest remaining term under an 
  4.38  agreement for federal rental 
  4.39  assistance.  Priority must also be 
  4.40  given among comparable rental housing 
  4.41  developments to developments that are 
  4.42  or will be owned by local government 
  4.43  units, a housing and redevelopment 
  4.44  authority, or a nonprofit housing 
  4.45  organization. 
  4.46  Sec. 4.  COMMERCE 
  4.47  Subdivision 1.  Total 
  4.48  Appropriation                         26,076,000     25,349,000
  4.49                Summary by Fund
  4.50  General              24,157,000    23,430,000
  4.51  Petroleum    
  4.52  Cleanup               1,084,000     1,084,000
  4.53  Workers'     
  4.54  Compensation            835,000       835,000
  4.55  The amounts that may be spent from this 
  4.56  appropriation for each program are 
  4.57  specified in the following subdivisions.
  4.58  Subd. 2.  Financial        
  4.59  Examinations                           5,997,000      5,994,000 
  4.60  Subd. 3.  Petroleum Tank Release 
  5.1   Cleanup Board                          1,084,000      1,084,000 
  5.2   This appropriation is from the 
  5.3   petroleum tank release cleanup fund. 
  5.4   Subd. 4.  Administrative Services      5,518,000      5,518,000 
  5.5   Subd. 5.  Market Assurance             6,622,000      5,897,000 
  5.6                 Summary by Fund
  5.7   General               5,787,000     5,062,000
  5.8   Workers' Compensation   835,000       835,000
  5.9   Subd. 6.  Energy and 
  5.10  Telecommunications                     4,349,000      4,349,000 
  5.11  Subd. 7.  Weights and 
  5.12  Measurement                            2,506,000      2,507,000 
  5.13  Sec. 5.  BOARD OF ACCOUNTANCY            577,000        577,000 
  5.14  Sec. 6.  BOARD OF ARCHITECTURE, 
  5.15  ENGINEERING, LAND SURVEYING, 
  5.16  LANDSCAPE ARCHITECTURE, 
  5.17  GEOSCIENCE, AND INTERIOR 
  5.18  DESIGN                                   785,000        785,000 
  5.19  Sec. 7.  BOARD OF BARBER    
  5.20  EXAMINERS                                127,000        127,000 
  5.21  Sec. 8.  LABOR AND INDUSTRY                                     
  5.22  Subdivision 1.  Total           
  5.23  Appropriation                         19,950,000     18,974,000
  5.24                Summary by Fund
  5.25  General               2,560,000     2,494,000
  5.26  Workers'     
  5.27  Compensation         17,390,000    16,480,000
  5.28  The amounts that may be spent from this 
  5.29  appropriation for each program are 
  5.30  specified in the following subdivisions.
  5.31  Subd. 2.  Workers'          
  5.32  Compensation                          10,221,000     10,221,000 
  5.33  This appropriation is from the workers' 
  5.34  compensation fund. 
  5.35  Subd. 3.  Workplace Services           4,137,000      3,466,000 
  5.36                Summary by Fund
  5.37  General               2,560,000     2,494,000
  5.38  Workers'     
  5.39  Compensation          1,577,000       972,000
  5.40  Subd. 4.  General Support              5,592,000      5,287,000 
  5.41  This appropriation is from the workers' 
  5.42  compensation fund. 
  5.43  Sec. 9.  BUREAU OF MEDIATION
  5.44  SERVICES                                                        
  6.1   Subdivision 1.  Total           
  6.2   Appropriation                          1,825,000      1,825,000
  6.3   The amounts that may be spent from this 
  6.4   appropriation for each program are 
  6.5   specified in the following subdivisions.
  6.6   Subd. 2.  Mediation Services           1,673,000      1,673,000 
  6.7   Subd. 3.  Labor Management  
  6.8   Cooperation Grants                       152,000        152,000 
  6.9   $130,000 each year is for grants to 
  6.10  area labor-management committees.  
  6.11  Grants may be awarded for a 12-month 
  6.12  period beginning July 1 of each year.  
  6.13  Any unencumbered balance remaining at 
  6.14  the end of the first year does not 
  6.15  cancel but is available for the second 
  6.16  year. 
  6.17  Sec. 10.  WORKERS' COMPENSATION 
  6.18  COURT OF APPEALS                       1,618,000      1,618,000 
  6.19  This appropriation is from the workers' 
  6.20  compensation fund. 
  6.21  Sec. 11.  PUBLIC UTILITIES  
  6.22  COMMISSION                             4,163,000      4,163,000 
  6.23  Sec. 12.  MINNESOTA HISTORICAL 
  6.24  SOCIETY 
  6.25  Subdivision 1.  Total 
  6.26  Appropriation                         22,860,000     22,732,000
  6.27  The amounts that may be spent from this 
  6.28  appropriation for each program are 
  6.29  specified in the following subdivisions.
  6.30  Subd. 2.  Education and     
  6.31  Outreach                              12,585,000     12,585,000 
  6.32  Subd. 3.  Preservation and  
  6.33  Access                                 9,927,000      9,927,000 
  6.34  Subd. 4.  Fiscal Agent                   348,000        220,000 
  6.35  (a) Minnesota International Center 
  6.36          43,000         43,000 
  6.37  (b) Minnesota Air National   
  6.38  Guard Museum 
  6.39          16,000        -0-     
  6.40  (c) Institute for Learning and 
  6.41  Teaching - Project 120 
  6.42          94,000         93,000 
  6.43  (d) Minnesota Military Museum 
  6.44          67,000        -0-     
  6.45  (e) Farmamerica              
  6.46         128,000         85,000 
  6.47  Notwithstanding any other law, this 
  7.1   appropriation may be used for 
  7.2   operations. 
  7.3   (f) Balances Forward         
  7.4   Any unencumbered balance remaining in 
  7.5   this subdivision the first year does 
  7.6   not cancel but is available for the 
  7.7   second year of the biennium. 
  7.8   Subd. 5.  Fund Transfer  
  7.9   The society may reallocate funds 
  7.10  appropriated in and between 
  7.11  subdivisions 2 and 3 for any program 
  7.12  purposes. 
  7.13  Sec. 13.  COUNCIL ON BLACK  
  7.14  MINNESOTANS                              282,000        282,000 
  7.15  Sec. 14.  COUNCIL ON        
  7.16  CHICANO-LATINO AFFAIRS                   275,000        275,000 
  7.17  Sec. 15.  COUNCIL ON 
  7.18  ASIAN-PACIFIC MINNESOTANS                243,000        243,000 
  7.19  Sec. 16.  INDIAN AFFAIRS    
  7.20  COUNCIL                                  482,000        482,000 
  7.21  Sec. 17.  BOARD OF THE      
  7.22  ARTS                                   
  7.23  Subdivision 1.  Total 
  7.24  Appropriation                     $   10,093,000 $   10,093,000 
  7.25  Subd. 2.  Operations and Services        621,000        621,000 
  7.26  Subd. 3.  Grants Programs              6,684,000      6,684,000 
  7.27  Subd. 4.  Regional Arts     
  7.28  Councils                               2,788,000      2,788,000 
  7.29                             ARTICLE 2
  7.30                       DEPARTMENT OF COMMERCE 
  7.31                         POLICY PROVISIONS 
  7.32     Section 1.  Minnesota Statutes 2002, section 79.56, 
  7.33  subdivision 1, is amended to read: 
  7.34     Subdivision 1.  [PREFILING OF RATES.] (a) Each insurer 
  7.35  shall file with the commissioner a complete copy of its rates 
  7.36  and rating plan, and all changes and amendments thereto, and 
  7.37  such supporting data and information that the commissioner may 
  7.38  by rule require, at least 60 days prior to its effective date.  
  7.39  The commissioner shall advise an insurer within 30 days of the 
  7.40  filing if its submission is not accompanied with such supporting 
  7.41  data and information that the commissioner by rule may require.  
  7.42  The commissioner may extend the filing review period and 
  7.43  effective date for an additional 30 days if an insurer, after 
  8.1   having been advised of what supporting data and information is 
  8.2   necessary to complete its filing, does not provide such 
  8.3   information within 15 days of having been so notified.  If any 
  8.4   rate or rating plan filing or amendment thereto is not 
  8.5   disapproved by the commissioner within the filing review period, 
  8.6   the insurer may implement it.  For the period August 1, 1995, to 
  8.7   December 31, 1995, the filing shall be made at least 90 days 
  8.8   prior to the effective date and the department shall advise an 
  8.9   insurer within 60 days of such filing if the filing is 
  8.10  insufficient under this section.  
  8.11     (b) A rating plan or rates are not subject to the 
  8.12  requirements of paragraph (a), where the insurer files a 
  8.13  certification verifying that it will use the rating plan or 
  8.14  rates only to write a specific employer that generates $250,000 
  8.15  in annual written workers' compensation premiums before the 
  8.16  application of any large deductible rating plan.  The $250,000 
  8.17  threshold includes premiums generated in any state.  A filing 
  8.18  made under this paragraph shall be designated by the insurer as 
  8.19  a large risk alternative rating option (LRARO) filing.  The 
  8.20  designation and certification shall be submitted in 
  8.21  substantially the following form: 
  8.22           LARGE RISK ALTERNATIVE RATING OPTION FILING 
  8.23                 PURSUANT TO MINNESOTA STATUTES, 
  8.24                SECTION 79.56, SUBDIVISION 1, (b) 
  8.25  Name and address of insurer:................................. 
  8.26  Name and address of insured employer:........................ 
  8.27  Effective date of filing:.................................... 
  8.28  I certify that the employer named above generates $250,000 or 
  8.29  more in annual written workers' compensation premiums before the 
  8.30  application of any large deductible rating plan.  This 
  8.31  certification authorizes the use of this rate or rating plan 
  8.32  only for the named employer. 
  8.33  Name of responsible officer:................................. 
  8.34  Title:....................................................... 
  8.35  Signature:................................................... 
  8.36     Sec. 2.  Minnesota Statutes 2002, section 79.56, 
  9.1   subdivision 3, is amended to read: 
  9.2      Subd. 3.  [PENALTIES.] (a) Any insurer using a rate or a 
  9.3   rating plan which has not been filed under subdivision 1 shall 
  9.4   be subject to a fine of up to $100 for each day the failure to 
  9.5   file continues.  The commissioner may, after a hearing on the 
  9.6   record, find that the failure is willful.  A willful failure to 
  9.7   meet filing requirements shall be punishable by a fine of up to 
  9.8   $500 for each day during which a willful failure continues.  
  9.9   These penalties shall be in addition to any other penalties 
  9.10  provided by law.  
  9.11     (b) Notwithstanding this subdivision, an employer that 
  9.12  generates $250,000 in annual written workers' compensation 
  9.13  premium under the rates and rating plan of an insurer before the 
  9.14  application of any large deductible rating plans, may be written 
  9.15  by that insurer using rates or rating plans that are not subject 
  9.16  to disapproval but which have been filed.  For the purposes of 
  9.17  this paragraph, written workers' compensation premiums generated 
  9.18  from states other than Minnesota are included in calculating the 
  9.19  $250,000 threshold for large risk alternative rating option 
  9.20  plans. 
  9.21     Sec. 3.  Minnesota Statutes 2002, section 239.10, 
  9.22  subdivision 3, is amended to read: 
  9.23     Subd. 3.  [OTHER WEIGHTS AND MEASURES.] The director shall 
  9.24  inspect all weights and measures, except those specified in 
  9.25  subdivisions 1 and 2, annually, or as often as deemed possible 
  9.26  within budget and staff limitations, except that the director 
  9.27  shall not inspect liquid petroleum gas measuring equipment and 
  9.28  shall not charge a fee related to any such inspections. 
  9.29     Sec. 4.  Minnesota Statutes 2002, section 239.101, 
  9.30  subdivision 3, is amended to read: 
  9.31     Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
  9.32  is imposed (1) on petroleum products when received by the first 
  9.33  licensed distributor, and (2) on petroleum products received and 
  9.34  held for sale or use by any person when the petroleum products 
  9.35  have not previously been received by a licensed distributor.  
  9.36  The petroleum inspection fee is 85 cents $1 for every 1,000 
 10.1   gallons received.  The commissioner of revenue shall collect the 
 10.2   fee.  The revenue from the fee must first be applied to cover 
 10.3   the amounts appropriated for petroleum product quality 
 10.4   inspection expenses, for the inspection and testing of petroleum 
 10.5   product measuring equipment, and for petroleum supply monitoring 
 10.6   under chapter 216C.  These functions shall be performed by 
 10.7   departmental staff. 
 10.8      (b) The commissioner of revenue shall credit a person for 
 10.9   inspection fees previously paid in error or for any material 
 10.10  exported or sold for export from the state upon filing of a 
 10.11  report as prescribed by the commissioner of revenue. 
 10.12     (c) The commissioner of revenue may collect the inspection 
 10.13  fee along with any taxes due under chapter 296A. 
 10.14     Sec. 5.  Minnesota Statutes 2002, section 354D.02, 
 10.15  subdivision 2, is amended to read: 
 10.16     Subd. 2.  [ELIGIBILITY.] Eligible employees are: 
 10.17     (1) any supervisory or professional employee of the state 
 10.18  arts board; or 
 10.19     (2) any supervisory or professional employee of the 
 10.20  Minnesota humanities commission; or 
 10.21     (3) (2) any employee of the Minnesota historical society. 
 10.22     Sec. 6.  [REPEALER.] 
 10.23     Minnesota Statutes 2002, section 138.91, is repealed. 
 10.24                             ARTICLE 3 
 10.25                  DEPARTMENT OF LABOR AND INDUSTRY  
 10.26                         POLICY PROVISIONS 
 10.27     Section 1.  Minnesota Statutes 2002, section 175.16, 
 10.28  subdivision 1, is amended to read: 
 10.29     Subdivision 1.  [ESTABLISHED.] The department of labor and 
 10.30  industry shall consist of the following divisions:  division of 
 10.31  workers' compensation, division of boiler inspection, division 
 10.32  of occupational safety and health, division of statistics, 
 10.33  division of steamfitting standards, division of voluntary 
 10.34  apprenticeship, division of labor standards and apprenticeship, 
 10.35  and such other divisions as the commissioner of the department 
 10.36  of labor and industry may deem necessary and establish.  Each 
 11.1   division of the department and persons in charge thereof shall 
 11.2   be subject to the supervision of the commissioner of the 
 11.3   department of labor and industry and, in addition to such duties 
 11.4   as are or may be imposed on them by statute, shall perform such 
 11.5   other duties as may be assigned to them by said the commissioner.
 11.6   Notwithstanding any other law to the contrary, the commissioner 
 11.7   is the administrator and supervisor of all of the department's 
 11.8   dispute resolution functions and personnel and may delegate 
 11.9   authority to compensation judges and others to make 
 11.10  determinations under sections 176.106, 176.238, and 176.239 and 
 11.11  to approve settlement of claims under section 176.521. 
 11.12     Sec. 2.  Minnesota Statutes 2002, section 177.26, 
 11.13  subdivision 1, is amended to read: 
 11.14     Subdivision 1.  [CREATION.] The division of labor standards 
 11.15  and apprenticeship in the department of labor and industry is 
 11.16  supervised and controlled by the commissioner of labor and 
 11.17  industry.  
 11.18     Sec. 3.  Minnesota Statutes 2002, section 177.26, 
 11.19  subdivision 2, is amended to read: 
 11.20     Subd. 2.  [POWERS AND DUTIES.] The powers, duties, and 
 11.21  functions given to the department's division of women and 
 11.22  children by this chapter, and other applicable laws relating to 
 11.23  wages, hours, and working conditions, are transferred to the 
 11.24  division of labor standards.  The division of labor standards 
 11.25  and apprenticeship shall administer sections 177.21 to 177.35 
 11.26  and chapter chapters 177, 178, 181, 181A, and 184.  The division 
 11.27  shall perform duties under sections 181.9435 and 181.9436. 
 11.28     Sec. 4.  Minnesota Statutes 2002, section 178.01, is 
 11.29  amended to read: 
 11.30     178.01 [PURPOSES.] 
 11.31     The purposes of this chapter are:  to open to young people 
 11.32  regardless of race, sex, creed, color or national origin, the 
 11.33  opportunity to obtain training that will equip them for 
 11.34  profitable employment and citizenship; to establish as a means 
 11.35  to this end, a program of voluntary apprenticeship under 
 11.36  approved apprentice agreements providing facilities for their 
 12.1   training and guidance in the arts, skills, and crafts of 
 12.2   industry and trade, with concurrent, supplementary instruction 
 12.3   in related subjects; to promote employment opportunities under 
 12.4   conditions providing adequate training and reasonable earnings; 
 12.5   to relate the supply of skilled workers to employment demands; 
 12.6   to establish standards for apprentice training; to establish an 
 12.7   apprenticeship advisory council and apprenticeship committees to 
 12.8   assist in effectuating the purposes of this chapter; to provide 
 12.9   for a division of voluntary labor standards and apprenticeship 
 12.10  within the department of labor and industry; to provide for 
 12.11  reports to the legislature regarding the status of apprentice 
 12.12  training in the state; to establish a procedure for the 
 12.13  determination of apprentice agreement controversies; and to 
 12.14  accomplish related ends.  
 12.15     Sec. 5.  Minnesota Statutes 2002, section 178.03, 
 12.16  subdivision 1, is amended to read: 
 12.17     Subdivision 1.  [ESTABLISHMENT OF DIVISION.] There is 
 12.18  hereby established a division of voluntary labor standards and 
 12.19  apprenticeship in the department of labor and industry.  This 
 12.20  division shall be administered by a director, and be under the 
 12.21  supervision of the commissioner of labor and industry, 
 12.22  hereinafter referred to as the commissioner.  
 12.23     Sec. 6.  Minnesota Statutes 2002, section 178.03, 
 12.24  subdivision 2, is amended to read: 
 12.25     Subd. 2.  [DIRECTOR OF VOLUNTARY LABOR STANDARDS AND 
 12.26  APPRENTICESHIP.] The commissioner shall appoint a director of 
 12.27  the division of voluntary labor standards and apprenticeship, 
 12.28  hereinafter referred to as the director, and may appoint and 
 12.29  employ such clerical, technical, and professional help as is 
 12.30  necessary to accomplish the purposes of this chapter.  The 
 12.31  director and division staff shall be appointed and shall serve 
 12.32  in the classified service pursuant to civil service law and 
 12.33  rules.  
 12.34     Sec. 7.  [178.12] [REGISTRATION FEE.] 
 12.35     The apprenticeship registration account is established in 
 12.36  the special revenue fund of the state treasury.  An annual 
 13.1   registration fee will be charged to each sponsor for each 
 13.2   apprentice registered in the program.  The fee is established at 
 13.3   $50 per apprentice.  Subsequent adjustments to this fee will be 
 13.4   made pursuant to Minnesota Statutes, sections 16A.1283 and 
 13.5   16A.1285, subdivision 2.  The fees collected and any interest 
 13.6   earned are appropriated to the commissioner for purposes of this 
 13.7   chapter. 
 13.8      Sec. 8.  Minnesota Statutes 2002, section 181.9435, 
 13.9   subdivision 1, is amended to read: 
 13.10     Subdivision 1.  [INVESTIGATION.] The division of labor 
 13.11  standards and apprenticeship shall receive complaints of 
 13.12  employees against employers relating to sections 181.940 to 
 13.13  181.9436 and investigate informally whether an employer may be 
 13.14  in violation of sections 181.940 to 181.9436.  The division 
 13.15  shall attempt to resolve employee complaints by informing 
 13.16  employees and employers of the provisions of the law and 
 13.17  directing employers to comply with the law. 
 13.18     Sec. 9.  Minnesota Statutes 2002, section 181.9436, is 
 13.19  amended to read: 
 13.20     181.9436 [POSTING OF LAW.] 
 13.21     The division of labor standards and apprenticeship shall 
 13.22  develop, with the assistance of interested business and 
 13.23  community organizations, an educational poster stating 
 13.24  employees' rights under sections 181.940 to 181.9436.  The 
 13.25  department shall make the poster available, upon request, to 
 13.26  employers for posting on the employer's premises. 
 13.27     Sec. 10.  [REPEALER.] 
 13.28     Minnesota Statutes 2002, sections 177.26, subdivision 3 and 
 13.29  178.11, are repealed.  
 13.30                             ARTICLE 4  
 13.31                  DEPARTMENT OF ECONOMIC SECURITY 
 13.32                         POLICY PROVISIONS 
 13.33     Section 1.  Minnesota Statutes 2002, section 124D.68, 
 13.34  subdivision 2, is amended to read: 
 13.35     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
 13.36  eligible to participate in the graduation incentives program:  
 14.1      (a) any pupil under the age of 21 who:  
 14.2      (1) performs substantially below the performance level for 
 14.3   pupils of the same age in a locally determined achievement test; 
 14.4      (2) is at least one year behind in satisfactorily 
 14.5   completing coursework or obtaining credits for graduation; 
 14.6      (3) is pregnant or is a parent; 
 14.7      (4) has been assessed as chemically dependent; 
 14.8      (5) has been excluded or expelled according to sections 
 14.9   121A.40 to 121A.56; 
 14.10     (6) has been referred by a school district for enrollment 
 14.11  in an eligible program or a program pursuant to section 124D.69; 
 14.12     (7) is a victim of physical or sexual abuse; 
 14.13     (8) has experienced mental health problems; 
 14.14     (9) has experienced homelessness sometime within six months 
 14.15  before requesting a transfer to an eligible program; 
 14.16     (10) speaks English as a second language or has limited 
 14.17  English proficiency; or 
 14.18     (11) has withdrawn from school or has been chronically 
 14.19  truant; or 
 14.20     (b) any person who is at least 21 years of age and who:  
 14.21     (1) has received fewer than 14 years of public or nonpublic 
 14.22  education, beginning at age 5; 
 14.23     (2) has not completed the requirements for a high school 
 14.24  diploma; and 
 14.25     (3) at the time of application, (i) is eligible for 
 14.26  unemployment benefits or has exhausted the benefits, (ii) is 
 14.27  eligible for, or is receiving income maintenance and support 
 14.28  services, as defined in section 268.0111, subdivision 5, or 
 14.29  (iii) is eligible for services under the displaced homemaker 
 14.30  program, state wage-subsidy program, or any programs under the 
 14.31  federal Jobs Training Partnership Act or its successor. 
 14.32     Sec. 2.  Minnesota Statutes 2002, section 256D.05, 
 14.33  subdivision 1, is amended to read: 
 14.34     Subdivision 1.  [ELIGIBILITY.] (a) Each assistance unit 
 14.35  with income and resources less than the standard of assistance 
 14.36  established by the commissioner and with a member who is a 
 15.1   resident of the state shall be eligible for and entitled to 
 15.2   general assistance if the assistance unit is: 
 15.3      (1) a person who is suffering from a professionally 
 15.4   certified permanent or temporary illness, injury, or incapacity 
 15.5   which is expected to continue for more than 30 days and which 
 15.6   prevents the person from obtaining or retaining employment; 
 15.7      (2) a person whose presence in the home on a substantially 
 15.8   continuous basis is required because of the professionally 
 15.9   certified illness, injury, incapacity, or the age of another 
 15.10  member of the household; 
 15.11     (3) a person who has been placed in, and is residing in, a 
 15.12  licensed or certified facility for purposes of physical or 
 15.13  mental health or rehabilitation, or in an approved chemical 
 15.14  dependency domiciliary facility, if the placement is based on 
 15.15  illness or incapacity and is according to a plan developed or 
 15.16  approved by the county agency through its director or designated 
 15.17  representative; 
 15.18     (4) a person who resides in a shelter facility described in 
 15.19  subdivision 3; 
 15.20     (5) a person not described in clause (1) or (3) who is 
 15.21  diagnosed by a licensed physician, psychological practitioner, 
 15.22  or other qualified professional, as mentally retarded or 
 15.23  mentally ill, and that condition prevents the person from 
 15.24  obtaining or retaining employment; 
 15.25     (6) a person who has an application pending for, or is 
 15.26  appealing termination of benefits from, the social security 
 15.27  disability program or the program of supplemental security 
 15.28  income for the aged, blind, and disabled, provided the person 
 15.29  has a professionally certified permanent or temporary illness, 
 15.30  injury, or incapacity which is expected to continue for more 
 15.31  than 30 days and which prevents the person from obtaining or 
 15.32  retaining employment; 
 15.33     (7) a person who is unable to obtain or retain employment 
 15.34  because advanced age significantly affects the person's ability 
 15.35  to seek or engage in substantial work; 
 15.36     (8) a person who has been assessed by a vocational 
 16.1   specialist and, in consultation with the county agency, has been 
 16.2   determined to be unemployable for purposes of this clause; a 
 16.3   person is considered employable if there exist positions of 
 16.4   employment in the local labor market, regardless of the current 
 16.5   availability of openings for those positions, that the person is 
 16.6   capable of performing.  The person's eligibility under this 
 16.7   category must be reassessed at least annually.  The county 
 16.8   agency must provide notice to the person not later than 30 days 
 16.9   before annual eligibility under this item ends, informing the 
 16.10  person of the date annual eligibility will end and the need for 
 16.11  vocational assessment if the person wishes to continue 
 16.12  eligibility under this clause.  For purposes of establishing 
 16.13  eligibility under this clause, it is the applicant's or 
 16.14  recipient's duty to obtain any needed vocational assessment; 
 16.15     (9) a person who is determined by the county agency, 
 16.16  according to permanent rules adopted by the commissioner, to be 
 16.17  learning disabled, provided that if a rehabilitation plan for 
 16.18  the person is developed or approved by the county agency, the 
 16.19  person is following the plan; 
 16.20     (10) a child under the age of 18 who is not living with a 
 16.21  parent, stepparent, or legal custodian, and only if:  the child 
 16.22  is legally emancipated or living with an adult with the consent 
 16.23  of an agency acting as a legal custodian; the child is at least 
 16.24  16 years of age and the general assistance grant is approved by 
 16.25  the director of the county agency or a designated representative 
 16.26  as a component of a social services case plan for the child; or 
 16.27  the child is living with an adult with the consent of the 
 16.28  child's legal custodian and the county agency.  For purposes of 
 16.29  this clause, "legally emancipated" means a person under the age 
 16.30  of 18 years who:  (i) has been married; (ii) is on active duty 
 16.31  in the uniformed services of the United States; (iii) has been 
 16.32  emancipated by a court of competent jurisdiction; or (iv) is 
 16.33  otherwise considered emancipated under Minnesota law, and for 
 16.34  whom county social services has not determined that a social 
 16.35  services case plan is necessary, for reasons other than the 
 16.36  child has failed or refuses to cooperate with the county agency 
 17.1   in developing the plan; 
 17.2      (11) a person who is eligible for displaced homemaker 
 17.3   services, programs, or assistance under section 268.96, but only 
 17.4   if that person is enrolled as a full-time student; 
 17.5      (12) a person who lives more than four hours round-trip 
 17.6   traveling time from any potential suitable employment; 
 17.7      (13) (12) a person who is involved with protective or 
 17.8   court-ordered services that prevent the applicant or recipient 
 17.9   from working at least four hours per day; 
 17.10     (14) (13) a person over age 18 whose primary language is 
 17.11  not English and who is attending high school at least half time; 
 17.12  or 
 17.13     (15) (14) a person whose alcohol and drug addiction is a 
 17.14  material factor that contributes to the person's disability; 
 17.15  applicants who assert this clause as a basis for eligibility 
 17.16  must be assessed by the county agency to determine if they are 
 17.17  amenable to treatment; if the applicant is determined to be not 
 17.18  amenable to treatment, but is otherwise eligible for benefits, 
 17.19  then general assistance must be paid in vendor form, for the 
 17.20  individual's shelter costs up to the limit of the grant amount, 
 17.21  with the residual, if any, paid according to section 256D.09, 
 17.22  subdivision 2a; if the applicant is determined to be amenable to 
 17.23  treatment, then in order to receive benefits, the applicant must 
 17.24  be in a treatment program or on a waiting list and the benefits 
 17.25  must be paid in vendor form, for the individual's shelter costs, 
 17.26  up to the limit of the grant amount, with the residual, if any, 
 17.27  paid according to section 256D.09, subdivision 2a. 
 17.28     (b) As a condition of eligibility under paragraph (a), 
 17.29  clauses (1), (3), (5), (8), and (9), the recipient must complete 
 17.30  an interim assistance agreement and must apply for other 
 17.31  maintenance benefits as specified in section 256D.06, 
 17.32  subdivision 5, and must comply with efforts to determine the 
 17.33  recipient's eligibility for those other maintenance benefits.  
 17.34     (c) The burden of providing documentation for a county 
 17.35  agency to use to verify eligibility for general assistance or 
 17.36  for exemption from the food stamp employment and training 
 18.1   program is upon the applicant or recipient.  The county agency 
 18.2   shall use documents already in its possession to verify 
 18.3   eligibility, and shall help the applicant or recipient obtain 
 18.4   other existing verification necessary to determine eligibility 
 18.5   which the applicant or recipient does not have and is unable to 
 18.6   obtain. 
 18.7      Sec. 3.  Minnesota Statutes 2002, section 256J.49, 
 18.8   subdivision 13, is amended to read: 
 18.9      Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
 18.10  activity in a participant's approved employment plan that is 
 18.11  tied to the participant's employment goal.  For purposes of the 
 18.12  MFIP program, any activity that is included in a participant's 
 18.13  approved employment plan meets the definition of work activity 
 18.14  as counted under the federal participation standards.  Work 
 18.15  activity includes, but is not limited to: 
 18.16     (1) unsubsidized employment; 
 18.17     (2) subsidized private sector or public sector employment, 
 18.18  including grant diversion as specified in section 256J.69; 
 18.19     (3) work experience, including CWEP as specified in section 
 18.20  256J.67, and including work associated with the refurbishing of 
 18.21  publicly assisted housing if sufficient private sector 
 18.22  employment is not available; 
 18.23     (4) on-the-job training as specified in section 256J.66; 
 18.24     (5) job search, either supervised or unsupervised; 
 18.25     (6) job readiness assistance; 
 18.26     (7) job clubs, including job search workshops; 
 18.27     (8) job placement; 
 18.28     (9) job development; 
 18.29     (10) job-related counseling; 
 18.30     (11) job coaching; 
 18.31     (12) job retention services; 
 18.32     (13) job-specific training or education; 
 18.33     (14) job skills training directly related to employment; 
 18.34     (15) the self-employment investment demonstration (SEID), 
 18.35  as specified in section 256J.65; 
 18.36     (16) preemployment activities, based on availability and 
 19.1   resources, such as volunteer work, literacy programs and related 
 19.2   activities, citizenship classes, English as a second language 
 19.3   (ESL) classes as limited by the provisions of section 256J.52, 
 19.4   subdivisions 3, paragraph (d), and 5, paragraph (c), or 
 19.5   participation in dislocated worker services, chemical dependency 
 19.6   treatment, mental health services, peer group networks, 
 19.7   displaced homemaker programs, strength-based resiliency 
 19.8   training, parenting education, or other programs designed to 
 19.9   help families reach their employment goals and enhance their 
 19.10  ability to care for their children; 
 19.11     (17) community service programs; 
 19.12     (18) vocational educational training or educational 
 19.13  programs that can reasonably be expected to lead to employment, 
 19.14  as limited by the provisions of section 256J.53; 
 19.15     (19) apprenticeships; 
 19.16     (20) satisfactory attendance in general educational 
 19.17  development diploma classes or an adult diploma program; 
 19.18     (21) satisfactory attendance at secondary school, if the 
 19.19  participant has not received a high school diploma; 
 19.20     (22) adult basic education classes; 
 19.21     (23) internships; 
 19.22     (24) bilingual employment and training services; 
 19.23     (25) providing child care services to a participant who is 
 19.24  working in a community service program; and 
 19.25     (26) activities included in an alternative employment plan 
 19.26  that is developed under section 256J.52, subdivision 6. 
 19.27     Sec. 4.  Minnesota Statutes 2002, section 268.0111, 
 19.28  subdivision 4, is amended to read: 
 19.29     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICES.] "Employment 
 19.30  and training services" means programs, activities, and services 
 19.31  related to job training, job placement, and job creation 
 19.32  including job service programs, Job Training Partnership Act 
 19.33  programs, wage subsidies, job search, counseling, case 
 19.34  management, community work experience programs, displaced 
 19.35  homemaker programs, disadvantaged job training programs, grant 
 19.36  diversion, youth employment programs, conservation corps, 
 20.1   apprenticeship programs, community development corporations, 
 20.2   economic development programs, and opportunities 
 20.3   industrialization centers. 
 20.4      Sec. 5.  Minnesota Statutes 2002, section 268.665, 
 20.5   subdivision 2, is amended to read: 
 20.6      Subd. 2.  [MEMBERSHIP.] The governor's workforce 
 20.7   development council is composed of 33 members appointed by the 
 20.8   governor.  The members may be removed pursuant to section 
 20.9   15.059.  In selecting the representatives of the council, the 
 20.10  governor shall ensure that 50 percent of the members come from 
 20.11  nominations provided by local workforce councils.  Local 
 20.12  education representatives shall come from nominations provided 
 20.13  by local education to employment partnerships.  The 33 members 
 20.14  shall represent the following sectors:  
 20.15     (a) State agencies:  the following individuals shall serve 
 20.16  on the council:  
 20.17     (1) commissioner of the Minnesota department of economic 
 20.18  security; 
 20.19     (2) commissioner of the Minnesota department of children, 
 20.20  families, and learning; 
 20.21     (3) commissioner of the Minnesota department of human 
 20.22  services; and 
 20.23     (4) commissioner of the Minnesota department of trade and 
 20.24  economic development. 
 20.25     (b) Business and industry:  six individuals shall represent 
 20.26  the business and industry sectors of Minnesota. 
 20.27     (c) Organized labor:  six individuals shall represent labor 
 20.28  organizations of Minnesota. 
 20.29     (d) Community-based organizations:  four individuals shall 
 20.30  represent community-based organizations of Minnesota.  
 20.31  Community-based organizations are defined by the Job Training 
 20.32  Partnership Act as private nonprofit organizations that are 
 20.33  representative of communities or significant segments of 
 20.34  communities and that provide job training services, agencies 
 20.35  serving youth, agencies serving individuals with disabilities, 
 20.36  agencies serving displaced homemakers, union-related 
 21.1   organizations, and employer-related nonprofit organizations and 
 21.2   organizations serving nonreservation Indians and tribal 
 21.3   governments. 
 21.4      (e) Education:  six individuals shall represent the 
 21.5   education sector of Minnesota as follows:  
 21.6      (1) one individual shall represent local public secondary 
 21.7   education; 
 21.8      (2) one individual shall have expertise in design and 
 21.9   implementation of school-based service-learning; 
 21.10     (3) one individual shall represent post-secondary 
 21.11  education; 
 21.12     (4) one individual shall represent secondary/post-secondary 
 21.13  vocational institutions; 
 21.14     (5) the chancellor of the board of trustees of the 
 21.15  Minnesota state colleges and universities; and 
 21.16     (6) one individual shall have expertise in agricultural 
 21.17  education. 
 21.18     (f) Other:  two individuals shall represent other 
 21.19  constituencies including: 
 21.20     (1) units of local government; and 
 21.21     (2) applicable state or local programs. 
 21.22     The speaker and the minority leader of the house of 
 21.23  representatives shall each appoint a representative to serve as 
 21.24  an ex officio member of the council.  The majority and minority 
 21.25  leaders of the senate shall each appoint a senator to serve as 
 21.26  an ex officio member of the council.  After January 1, 1997, the 
 21.27  Minnesota director of the corporation for national service shall 
 21.28  also serve as an ex officio member.  
 21.29     (g) Appointment:  each member shall be appointed for a term 
 21.30  of three years from the first day of January or July immediately 
 21.31  following their appointment.  Elected officials shall forfeit 
 21.32  their appointment if they cease to serve in elected office.  
 21.33     (h) Members of the council are compensated as provided in 
 21.34  section 15.059, subdivision 3. 
 21.35     Sec. 6.  [REPEALER.] 
 21.36     Minnesota Statutes 2002, section 268.96, is repealed.