1.1 	A bill for an act
1.2 	relating to employment; providing exemptions from
1.3 	employment agency licensing requirements; prohibiting
1.4 	certain fee payments; extending a pilot project;
1.5 	amending Minnesota Statutes 2004, section 184.22, by
1.6 	adding subdivisions; Laws 2004, chapter 188, section 1.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 184.22, is
1.9 	amended by adding a subdivision to read:
1.10 		Subd. 6.Exemptions. (a) Except as otherwise provided,
1.11 	sections 184.21 to 184.41 do not apply to any person, firm,
1.12 	corporation, partnership, or association engaged in the business
1.13 	of management consulting, management search consulting, or
1.14 	personnel consulting, hereafter "search firm," if:
1.15 	(1) the search firm is retained by, acts on behalf of, and
1.16 	is only compensated by the employer, pursuant to a written or
1.17 	oral agreement specifying the position to by filled;
1.18 	(2) in no instance will any individual candidate who is
1.19 	identified, appraised, or recommended by the search firm for
1.20 	employment become liable in whole or in part to pay a fee of any
1.21 	kind, directly or indirectly, on account of any service
1.22 	performed by the search firm;
1.23 	(3) in no instance does the search firm or its agents
1.24 	solicit, persuade, or induce any individual to terminate
1.25 	employment with an employer with whom the search firm has placed
1.26 	that individual; and 
2.1 	(4) the search firm does not carry on any other activity
2.2 	that comes within the definition of employment agency as defined
2.3 	in section 184.21, subdivision 2.
2.4 	(b) If the commissioner at any time has reason to believe
2.5 	that the search firm has not conducted its business in a manner
2.6 	consistent with the conditions in paragraph (a), clauses (1) to
2.7 	(4), the commissioner may inspect the relevant records of the
2.8 	search firm for the purpose of confirming whether the search
2.9 	firm has maintained its exempt status during the year.  If it is
2.10 	determined, either by written admission by the search firm or by
2.11 	a finding of fact in a court of law or by a hearing officer
2.12 	pursuant to chapter 14, that any of the four conditions in
2.13 	paragraph (a) were not met, the search firm shall be considered
2.14 	an employment agency and be subject to sections 184.21 to
2.15 	184.41.  If an employment agency offers services which are the
2.16 	same or similar to those offered by a search firm, or if a
2.17 	search firm offers services which are the same or similar to
2.18 	those offered by an employment agency, the person or entity
2.19 	offering these combined employment agency and search firm
2.20 	services shall identify itself to the public by displaying the
2.21 	name filed with the commissioner as a licensed employment
2.22 	agency; provided, that no search firm may offer licensed
2.23 	employment agency services at the same location.

2.24 	Sec. 2. Minnesota Statutes 2004, section 184.22, is
2.25 	amended by adding a subdivision to read:
2.26 		Subd. 7.Fee payment prohibited. No employer may require
2.27 	any job candidate placed with the employer by a search firm to
2.28 	pay, directly or indirectly, all or part of the search firm's
2.29 	fee.

2.30 	Sec. 3. Laws 2004, chapter 188, section 1, is amended to
2.31 	read:

2.32 	Section 1. Pilot project.
2.33 	The commissioner of employment and economic development
2.34 	shall conduct an extended employment pilot project to study an
2.35 	industrial model for employment for individuals with severe
2.36 	disabilities in Thief River Falls, Minnesota.
3.1 	Employment is to be provided by Custom Products, a division
3.2 	of Occupational Development Center.  During the pilot,
3.3 	employment outcomes for individuals with severe disabilities
3.4 	will be assumed to be community employment as defined under
3.5 	Minnesota Rules, part 3300.2005.  The pilot project will begin
3.6 	July 1, 2004, and end June 30, 2005 2006.  Evaluation of the
3.7 	pilot project must be completed by October 1, 2005 2006, by the
3.8 	commissioner.
3.9 	The pilot project must maintain a minimum ratio of 60
3.10 	percent of nondisabled persons, must pay minimum wages or better
3.11 	to all employees with severe disabilities, and must provide them
3.12 	a level of benefits equal to those provided to nondisabled
3.13 	employees.  All work teams must be integrated.
3.14 	The pilot project must provide the extended employment
3.15 	program with useful information to clarify the distinction
3.16 	between center-based and community employment subprograms.  The
3.17 	commissioner shall consider the findings of the pilot project in
3.18 	adopting rules.