1.1 	A bill for an act
1.2 	relating to economic development; making technical and housekeeping changes 
1.3 	to programs in the Department of Employment and Economic Development; 
1.4 	requiring the commissioner of employment and economic development to assist 
1.5 	small businesses with accessing certain federal funds; requiring the department 
1.6 	to implement certain fees for services; appropriating the revenue from fees;
1.7 	amending Minnesota Statutes 2004, sections 43A.08, subdivision 1a; 116L.04, 
1.8 	subdivisions 1, 1a; 116L.12, subdivision 4; 446A.03, subdivision 5; proposing 
1.9 	coding for new law in Minnesota Statutes, chapter 116J.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2004, section 43A.08, subdivision 1a, is amended to read:
1.12 		Subd. 1a.Additional unclassified positions. Appointing authorities for the 
1.13 	following agencies may designate additional unclassified positions according to this 
1.14 	subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; 
1.15 	Education; Employee Relations; Employment and Economic Development; Explore 
1.16 	Minnesota Tourism; Finance; Health; Human Rights; Labor and Industry; Natural 
1.17 	Resources; Public Safety; Human Services; Revenue; Transportation; and Veterans 
1.18 	Affairs; the Housing Finance and Pollution Control Agencies; the State Lottery; the state 
1.19 	Board of Investment; the Office of Administrative Hearings; the Office of Environmental 
1.20 	Assistance; the Offices of the Attorney General, Secretary of State, and State Auditor; 
1.21 	the Minnesota State Colleges and Universities; the Higher Education Services Office; the 
1.22 	Perpich Center for Arts Education; and the Minnesota Zoological Board.
1.23 	A position designated by an appointing authority according to this subdivision must 
1.24 	meet the following standards and criteria:
1.25 	(1) the designation of the position would not be contrary to other law relating 
1.26 	specifically to that agency;
2.1 	(2) the person occupying the position would report directly to the agency head or 
2.2 	deputy agency head and would be designated as part of the agency head's management 
2.3 	team;
2.4 	(3) the duties of the position would involve significant discretion and substantial 
2.5 	involvement in the development, interpretation, and implementation of agency policy;
2.6 	(4) the duties of the position would not require primarily personnel, accounting, or 
2.7 	other technical expertise where continuity in the position would be important;
2.8 	(5) there would be a need for the person occupying the position to be accountable to, 
2.9 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
2.10 	board or commission, or the employing constitutional officer;
2.11 	(6) the position would be at the level of division or bureau director or assistant 
2.12 	to the agency head; and
2.13 	(7) the commissioner has approved the designation as being consistent with the 
2.14 	standards and criteria in this subdivision.

2.15 	Sec. 2. [116J.656] SMALL BUSINESS ACCESS TO FEDERAL RESEARCH 
2.16 	FUNDS.
2.17 	(a) The commissioner shall assist small businesses to access federal funds through 
2.18 	the federal Small Business Innovation Research program and the Small Business 
2.19 	Technology Transfer program. In providing this assistance, the commissioner shall 
2.20 	maintain connections to eligible federal programs, assess specific funding opportunities, review 
2.21 	funding proposals, provide referrals to specific consulting services, and hold training 
2.22 	workshops throughout the state. 
2.23 	(b) Unless prohibited by federal law, the department must implement fees for 
2.24 	services that help companies seek federal Phase II Small Business Innovation Research 
2.25 	grants. The fees must be deposited in a special revenue account and are annually 
2.26 	appropriated to the department for the Small Business Innovation Research and Small 
2.27 	Business Technology Transfer programs.

2.28 	Sec. 3. Minnesota Statutes 2004, section 116L.04, subdivision 1, is amended to read:
2.29 		Subdivision 1.Partnership program. (a) The partnership program may provide 
2.30 	grants-in-aid to educational or other nonprofit educational institutions using the following 
2.31 	guidelines:
2.32 	(1) the educational or other nonprofit educational institution is a provider of training 
2.33 	within the state in either the public or private sector;
2.34 	(2) the program involves skills training that is an area of employment need; and
3.1 	(3) preference will be given to educational or other nonprofit training institutions 
3.2 	which serve economically disadvantaged people, minorities, or those who are victims of 
3.3 	economic dislocation and to businesses located in rural areas.
3.4 	(b) A single grant to any one institution shall not exceed $400,000. Up to 25 percent 
3.5 	of a grant may be used for preemployment training.

3.6 	Sec. 4. Minnesota Statutes 2004, section 116L.04, subdivision 1a, is amended to read:
3.7 		Subd. 1a.Pathways program. The pathways program may provide grants-in-aid 
3.8 	for developing programs which assist in the transition of persons from welfare to work and 
3.9 	assist individuals at or below 200 percent of the federal poverty guidelines. The program 
3.10 	is to be operated by the board. The board shall consult and coordinate with program 
3.11 	administrators at the Department of Employment and Economic Development to design 
3.12 	and provide services for temporary assistance for needy families recipients.
3.13 	Pathways grants-in-aid may be awarded to educational or other nonprofit training 
3.14 	institutions for education and training programs and services supporting education and 
3.15 	training programs that serve eligible recipients.
3.16 	Preference shall be given to projects that:
3.17 	(1) provide employment with benefits paid to employees;
3.18 	(2) provide employment where there are defined career paths for trainees;
3.19 	(3) pilot the development of an educational pathway that can be used on a continuing 
3.20 	basis for transitioning persons from welfare to work; and
3.21 	(4) demonstrate the active participation of Department of Employment and 
3.22 	Economic Development workforce centers, Minnesota State College and University 
3.23 	institutions and other educational institutions, and local welfare agencies.
3.24 	Pathways projects must demonstrate the active involvement and financial 
3.25 	commitment of private business. Pathways projects must be matched with cash or in-kind 
3.26 	contributions on at least a one-to-one ratio by participating private business.
3.27 	A single grant to any one institution shall not exceed $400,000. Up to 25 percent of 
3.28 	a grant may be used for preemployment training.

3.29 	Sec. 5. Minnesota Statutes 2004, section 116L.12, subdivision 4, is amended to read:
3.30 		Subd. 4.Grants. Within the limits of available appropriations, the board shall make 
3.31 	grants not to exceed $400,000 each to qualifying consortia to operate local, regional, or 
3.32 	statewide training and retention programs. Grants may be made from TANF funds, general 
3.33 	fund appropriations, and any other funding sources available to the board, provided the 
3.34 	requirements of those funding sources are satisfied. Up to 25 percent of a grant may 
4.1 	be used for preemployment training. Grant awards must establish specific, measurable 
4.2 	outcomes and timelines for achieving those outcomes.

4.3 	Sec. 6. Minnesota Statutes 2004, section 446A.03, subdivision 5, is amended to read:
4.4 		Subd. 5.Executive director. The commissioner shall employ, with the concurrence 
4.5 	of the authority, an executive director in the unclassified service. The director shall 
4.6 	perform duties that the authority may require in carrying out its responsibilities.