1.1                          A bill for an act 
  1.2             relating to employment; re-enacting certain employment 
  1.3             agency provisions; amending Minnesota Statutes 2002, 
  1.4             section 184.22, by adding subdivisions. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 184.22, is 
  1.7   amended by adding a subdivision to read: 
  1.8      Subd. 2a.  [EXEMPTIONS.] Except as otherwise specifically 
  1.9   provided, the provisions of sections 184.21 to 184.41 do not 
  1.10  apply to any person, firm, corporation, partnership, or 
  1.11  association engaged in the business of a management consultant, 
  1.12  management search consultant or personnel consulting firm 
  1.13  (hereafter "search firm") if:  (1) the search firm is retained 
  1.14  by, acts on behalf of and is only compensated by the employer, 
  1.15  pursuant to a written or oral agreement specifying the position 
  1.16  to be filled; (2) in no instance will any individual candidate 
  1.17  who is identified, appraised or recommended by the search firm 
  1.18  for employment become liable in whole or in part to pay a fee of 
  1.19  any kind, directly or indirectly, on account of any service 
  1.20  performed by the search firm; (3) in no instance does the search 
  1.21  firm or its agents solicit, persuade or induce any individual to 
  1.22  terminate employment with an employer with whom the search firm 
  1.23  has placed that individual; and (4) the search firm does not 
  1.24  carry on any other activity that comes within the definition of 
  1.25  employment agency as hereinbefore defined.  If the commissioner 
  2.1   at any time has reason to believe that the search firm has not 
  2.2   conducted its business in a manner consistent with the above 
  2.3   four conditions, the commissioner may inspect the relevant 
  2.4   records of the search firm for the purpose of confirming whether 
  2.5   the search firm has maintained its exempt status during the 
  2.6   year.  If it is determined, either by written admission by the 
  2.7   search firm or by a finding of fact in a court of law or by a 
  2.8   hearing officer pursuant to chapter 14, that any of the four 
  2.9   conditions were not met, the search firm shall thereafter be 
  2.10  considered an employment agency and be subject to the provisions 
  2.11  of sections 184.21 to 184.41.  If an employment agency offers 
  2.12  services which are the same or similar to those offered by a 
  2.13  search firm, or if a search firm offers services which are the 
  2.14  same or similar to those offered by an employment agency, the 
  2.15  person or entity offering these combined employment agency and 
  2.16  search firm services shall identify itself to the public by 
  2.17  displaying the name in which it is registered with the 
  2.18  commissioner as a licensed employment agency; provided, that no 
  2.19  registered search firm may offer licensed employment agency 
  2.20  services at the same location. 
  2.21     Sec. 2.  Minnesota Statutes 2002, section 184.22, is 
  2.22  amended by adding a subdivision to read: 
  2.23     Subd. 5a.  [FEE PAYMENT PROHIBITED.] No employer may 
  2.24  require any job candidate placed with the employer by a search 
  2.25  firm to pay, directly or indirectly, all or part of the search 
  2.26  firm's fee.