1.1A bill for an act1.2relating to work force development; appropriating money for higher education; 1.3establishing the Minnesota GI Bill program; amending certain Minnesota Office 1.4of Higher Education provisions, establishing new grant and loan repayment 1.5programs; amending higher education programs; amending certain grant 1.6programs; amending certain higher education provisions; eliminating obsolete 1.7references, making technical changes; authorizing control of certain decreasing 1.8students' share of attendance; increasing revenue bond limits; authorizing control 1.9of certain deposits; authorizing lease agreements; authorizing interest rate swap; 1.10providing for the Textbook Disclosure, Pricing and Access Act; amending certain 1.11private postsecondary institution provisions; appropriating money for jobs and 1.12economic development; amending certain Department of Employment and 1.13Economic Development and the Department of Labor and Industry programs and 1.14creating new programs and grants; establishing the Packinghouse Workers Bill 1.15of Rights; providing for civil actions; providing civil penalties; establishing 1.16criminal penalties; requiring reports; authorizing the increase of certain fees; 1.17requiring assignment of certain inspectors to certain locations; regulating licenses 1.18and wages; appropriating money for Iron Range Resources and Rehabilitation 1.19Board fund; making certain policy changes related to Iron Range Resources 1.20and Rehabilitation Board;amending Minnesota Statutes 2006, sections 13.322, 1.21subdivision 3; 16B.70, by adding a subdivision; 41D.01, subdivision 1; 116J.401, 1.22by adding a subdivision; 116J.551, subdivision 1; 116J.554, subdivision 2; 1.23116J.555, subdivision 1; 116J.575, subdivisions 1, 1a; 116J.966, subdivision 1; 1.24116L.01, by adding a subdivision; 116L.04, subdivision 1a; 116L.17, subdivision 1.251; 116L.20, subdivision 1; 116M.18, subdivision 6a; 135A.031, subdivision 1.267; 135A.053, subdivision 2; 135A.14, subdivision 1; 135A.51, subdivision 2; 1.27135A.52, subdivisions 1, 2; 136A.01, subdivision 2; 136A.031, subdivision 1.285; 136A.0411; 136A.08, subdivision 7; 136A.101, subdivision 4; 136A.121, 1.29subdivision 5; 136A.125, subdivision 2; 136A.15, subdivisions 1, 6; 136A.16, 1.30subdivisions 1, 2, 5, 8, 9, 10; 136A.17, subdivision 1; 136A.1701, subdivisions 1.311, 2, 5; 136A.233, subdivision 3; 136A.29, subdivision 9; 136A.61; 136A.62, 1.32subdivision 3; 136A.63; 136A.64; 136A.65; 136A.653; 136A.657; 136A.66; 1.33136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2, 3, 6; 1.34136F.02, subdivision 1; 136F.42, subdivision 1; 136F.71, subdivision 2, by 1.35adding a subdivision; 136G.11, subdivision 5; 141.21, subdivisions 1a, 5; 141.25, 1.36subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2; 1.37141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 141.35; 177.27, 1.38subdivisions 1, 4, 5, 8, 9, 10, by adding a subdivision; 177.28, subdivision 1; 1.39177.30; 177.43, subdivisions 3, 4, 6, by adding a subdivision; 178.01; 178.02; 2.1178.03, subdivision 3; 178.041, subdivision 1; 181.78, by adding a subdivision; 2.2181.932, subdivision 1; 181.935; 182.65, subdivision 2; 268.085, subdivision 2.33; 268.196, by adding a subdivision; 268A.01, subdivision 13, by adding a 2.4subdivision; 268A.085, subdivision 1; 268A.15, by adding a subdivision; 2.5298.22, subdivision 2; 298.227; 325E.37, subdivision 6; 326.01, subdivision 6g; 2.6326.241, subdivisions 1, 2; 326.242, subdivisions 5, 11, by adding a subdivision; 2.7326.37, subdivision 1; 326.38; 326.40, subdivision 1; 326.401, subdivision 2; 2.8326.405; 326.42, subdivision 1; 326.46; 326.461, by adding a subdivision; 2.9326.47, subdivisions 2, 6; 326.48, subdivisions 1, 2, by adding a subdivision; 2.10326.50; 326.51; 326.52; 341.28, subdivision 2, by adding a subdivision; 341.32, 2.11subdivision 2; 341.321; 462.39, by adding a subdivision; proposing coding 2.12for new law in Minnesota Statutes, chapters 116J; 116O; 135A; 136A; 136F; 2.13141; 177; 179; 181; 181A; 182; 197; 270; 326; repealing Minnesota Statutes 2.142006, sections 16C.18, subdivision 2; 135A.031, subdivisions 1, 2, 3, 4, 5, 6; 2.15135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; 137.0245; 137.0246; 2.16326.01, subdivision 4; 326.242, subdivision 4; 326.45.2.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.18ARTICLE 12.19HIGHER EDUCATION APPROPRIATIONS

2.20Section 1. SUMMARY OF APPROPRIATIONS.

2.21    The amounts shown in this section summarize direct appropriations, by fund, made 2.22in this article.

2.2320082009Total2.24General$1,558,498,000$1,641,178,000$3,199,676,0002.25Health Care Access2,157,0002,157,0004,314,0002.26Total$1,560,655,000$1,643,335,000$3,203,990,000

2.27Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

2.28    The sums shown in the columns marked "Appropriations" are appropriated to the 2.29agencies and for the purposes specified in this article. The appropriations are from the 2.30general fund, or another named fund, and are available for the fiscal years indicated 2.31for each purpose. The figures "2008" and "2009" used in this article mean that the 2.32appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.33June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.34year 2009. "The biennium" is fiscal years 2008 and 2009.

2.35APPROPRIATIONS2.36Available for the Year2.37Ending June 302.3820082009

2.392.40Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

3.1Subdivision 1.Total Appropriation$194,983,000$195,654,000

3.2The amounts that may be spent for each 3.3purpose are specified in the following 3.4subdivisions.

3.5Subd. 2.Minnesota GI Bill10,000,00010,000,000

3.6For grants to eligible veterans or the eligible 3.7spouses and children of veterans as provided 3.8under Minnesota Statutes, section 197.791.3.9Of this appropriation, $152,000 the first 3.10year and $104,000 the second year are for 3.11the administrative costs of operating this 3.12program. For the 2010-2011 biennium, 3.13the base for this program's administrative 3.14costs must be included within the agency 3.15administration program activity.

3.16Subd. 3.State Grants150,154,000151,124,000

3.17If the appropriation in this subdivision for 3.18either year is insufficient, the appropriation 3.19for the other year is available for it.3.20For the biennium, the tuition maximum for 3.21students in four-year programs is $9,957 in 3.22each year for students in four-year programs, 3.23and for students in two-year programs, is 3.24$4,717 in the first year and $4,859 in the 3.25second year.3.26This appropriation sets the living and 3.27miscellaneous expense allowance at $6,241 3.28each year.

3.29Subd. 4.Safety Officers Survivors100,000100,000

3.30This appropriation is to provide educational 3.31benefits under Minnesota Statutes, section 3.32299A.45, to dependent children under age 23 4.1and to the spouses of public safety officers 4.2killed in the line of duty.4.3If the appropriation in this subdivision for 4.4either year is insufficient, the appropriation 4.5for the other year is available for it.

4.6Subd. 5.Interstate Tuition Reciprocity2,000,0002,000,000

4.7If the appropriation in this subdivision for 4.8either year is insufficient, the appropriation 4.9for the other year is available to meet 4.10reciprocity contract obligations.

4.11Subd. 6.State Work Study12,444,00012,444,000

4.12Subd. 7.Child Care Grants4,934,0004,934,000

4.13Subd. 8.Minitex5,881,0005,881,000

4.14Subd. 9.MnLINK Gateway400,000400,000

4.15Subd. 10.Learning Network of Minnesota4,800,0004,800,000

4.16Subd. 11.Minnesota College Savings Plan1,020,0001,020,000

4.17Subd. 12.Midwest Higher Education Compact90,00090,000

4.18Subd. 13.Other Small Programs2,010,0001,670,000

4.19This appropriation includes funding for 4.20postsecondary service learning, student and 4.21parent information, get ready, outreach, and 4.22intervention for college attendance programs.4.23$265,000 each year is for grants to increase 4.24campus-community collaboration and service 4.25learning statewide, including operations of 4.26the Minnesota campus compact, grants to 4.27member institutions and grants for member 4.28institution initiatives. For every $1 in state 4.29funding, grant recipients must contribute $2 4.30in campus or community-based support.4.31$100,000 each year is for a grant to the 4.32Loan Repayment Assistance Program 5.1of Minnesota, Inc. for loan repayment 5.2assistance awards.5.3$500,000 each year is for the teacher 5.4education and compensation helps (TEACH) 5.5and the Minnesota early childhood teacher 5.6retention programs in Minnesota Statutes, 5.7section 136A.126. This is a onetime 5.8appropriation.5.9$250,000 in the first year is for a grant to 5.10Augsburg College for the purpose of its 5.11Step UP program to provide educational 5.12opportunities to chemically dependent 5.13students and to work with other public 5.14and private colleges in Minnesota to help 5.15replicate this program. This is a onetime 5.16appropriation.5.17$50,000 in the first year is for the speech 5.18pathologist loan forgiveness program for 5.19deposit in the account under Minnesota 5.20Statutes, section 136A.1704.5.21$40,000 in the first year is for a grant to 5.22the Washington Center for Internships and 5.23Academic Seminars for a pilot program 5.24for scholarships for students enrolling in a 5.25Minnesota four-year college or university 5.26beginning in the fall semester of 2007. The 5.27grant is available only with a dollar-for-dollar 5.28match from nonstate sources.

5.295.305.31Subd. 14.Access to College and Helping Individuals Everywhere Value Education and Rural Pilot Programs1,000,0001,000,000

5.32For Access to College and Helping 5.33Individuals Everywhere Value Education 5.34pilot projects that provide distance-learning 5.35opportunities through the Minnesota State 6.1Colleges and Universities for high school 6.2students living in remote and underserved 6.3areas where the school district lacks 6.4the resources to provide academically 6.5challenging educational opportunities, 6.6including Advanced Placement and 6.7International Baccalaureate programs. 6.8Students who successfully complete a course 6.9must receive college credit at no cost to the 6.10student or the participating school district. 6.11The office must report to the committees of 6.12the legislature with responsibility for higher 6.13education finance by January 15, 2009, on the 6.14program outcomes with recommendations on 6.15continuing and expanding the program.

6.166.17Subd. 15.United Family Medicine Residency Program360,000360,000

6.18For a grant to the united family medicine 6.19residency program. This appropriation 6.20must be used to support up to 18 resident 6.21physicians each year in family practice at 6.22united family medicine residency programs 6.23and must prepare doctors to practice family 6.24care medicine in underserved rural and 6.25urban areas of the state. The legislature 6.26intends this program to improve health 6.27care in underserved communities, provide 6.28affordable access to appropriate medical 6.29care, and manage the treatment of patients in 6.30a more cost-effective manner.

6.31Subd. 16.Agency Administration2,690,0002,731,000

6.32Of this appropriation, $39,000 the first 6.33year and $80,000 the second year are for 6.34compensation-related costs associated with 7.1the delivery of the office's services and 7.2programs.

7.3Subd. 17.Balances Forward

7.4A balance in the first year under this section 7.5does not cancel, but is available for the 7.6second year.

7.7Subd. 18.Transfers

7.8The Minnesota Office of Higher Education 7.9may transfer unencumbered balances from 7.10the appropriations in subdivisions 2 to 15 to 7.11the state grant appropriation, the safety officer 7.12survivors appropriation, the interstate tuition 7.13reciprocity appropriation, the Minnesota 7.14college savings plan appropriation, the child 7.15care appropriation, and the state work study 7.16appropriation.

7.17Subd. 19.Reporting

7.18(a) By November 1 and February 15, the 7.19Minnesota Office of Higher Education 7.20must provide updated state grant spending 7.21projections, taking into account the most 7.22current and projected enrollment and tuition 7.23and fee information, economic conditions, 7.24and other relevant factors. Before submitting 7.25state grant spending projections, the office 7.26must meet and consult with representatives of 7.27public and private postsecondary education, 7.28the Department of Finance, the governor's 7.29office, legislative staff, and financial aid 7.30administrators.7.31(b) The Minnesota Office of Higher 7.32Education shall report to the higher education 7.33divisions of the house and senate finance 7.34committees on participation in postsecondary 8.1education by income, and persistence and 8.2graduation rates of state grant recipients 8.3compared to students who did not receive 8.4state grants. The office is authorized to match 8.5individual student data from the student 8.6record enrollment database with individual 8.7student data from the state grant database on 8.8data elements necessary to perform the study.

8.98.108.11Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

8.12Subdivision 1.Total Appropriation$668,388,000$704,288,000

8.13The amounts that may be spent for each 8.14purpose are specified in the following 8.15subdivisions.

8.168.17Subd. 2.Central Office and Shared Services Unit$40,170,550$40,170,550

8.18For the office of the chancellor and the shared 8.19services division.

8.20Subd. 3.Operations and Maintenance$628,217,450$664,118,000

8.21(a) This appropriation includes funding 8.22for the board's initiatives on recruiting and 8.23retaining underrepresented students, strategic 8.24educational advancements, STEM initiatives, 8.25and infrastructure and technology, and for 8.26the costs of inflation. This appropriation 8.27also includes funding to reduce the tuition 8.28rate increase to two percent from the 8.29board-approved plan of a four percent annual 8.30increase.8.31(b) Appropriations for technology and 8.32infrastructure under this subdivision must 8.33not be used to increase permanent positions 8.34in the office of the chancellor or the shared 9.1services office. Any new positions funded 9.2from the technology and infrastructure 9.3appropriation must be at a campus.9.4(c) $400,000 each year is for 9.5community-based energy development 9.6pilot projects at Mesabi Range Technical 9.7and Community College, the Minnesota 9.8West Community and Technical College, 9.9and Riverland Community College. Each 9.10campus must establish partnerships for 9.11community-based energy development pilot 9.12projects that involve students and faculty. An 9.13allocation for the pilot project is available 9.14to the participating institutions and the 9.15partnerships for the biennium ending June 9.1630, 2009. 9.17(d) $750,000 in the first year is for a modular 9.18clean-room research and training facility 9.19at St. Paul College. This is a onetime 9.20appropriation and is available until expended.9.21(e) $300,000 the first year is for a grant to 9.22the Range Association of Municipalities 9.23and Schools for a study of student demand 9.24and employer needs for higher education in 9.25the Mesabi Range region of northeastern 9.26Minnesota including the cities of Grand 9.27Rapids through Eveleth to Ely. The 9.28association must coordinate and contract for 9.29a study in cooperation with the Board of 9.30Regents of the University of Minnesota and 9.31the Board of Trustees of the Minnesota State 9.32Colleges and Universities. The governing 9.33boards must advise on which of the identified 9.34needs can be met by University of Minnesota 9.35courses and which can be met by the 10.1Minnesota State Colleges and Universities, 10.2and which degree programs may be offered 10.3jointly. The final report must be submitted to 10.4the committees of the legislature responsible 10.5for higher education finance by January 15, 10.62008, with recommendations and plans for 10.7the region.10.8(f) $120,000 in each year is for the Cook 10.9County Higher Education Board to provide 10.10educational programs and academic support 10.11services. The base appropriation for this 10.12program is $120,000 in each year of the 10.13biennium ending June 30, 2011.10.14(g) $2,000,000 the first year and $1,000,000 10.15the second year are for a pilot project with 10.16the Northeast Minnesota Higher Education 10.17District and high schools in its area. Up to 10.18$1,200,000 of the first year appropriation 10.19must be used to purchase equipment that is 10.20necessary to reestablish a technical education 10.21curriculum in the area high schools to 10.22provide the students with the technical 10.23skills necessary for the workforce. Students 10.24from area high schools may also access 10.25the facilities and faculty of the Northeast 10.26Minnesota Higher Education District 10.27for state-of-the-art technical education 10.28opportunities, including MnSCU's 2+2 10.29Pathways initiative. $1,000,000 is added to 10.30the base for this project.10.31(h) $50,000 in the first year is for St. Paul 10.32College to collaborate with the United Auto 10.33Workers Local 879 to purchase a Ford 10.34Ranger pickup truck to retrofit to run on a 10.35battery-powered motor. This vehicle must 11.1be retrofitted to serve as a prototype that 11.2could be mass-produced at the St. Paul Ford 11.3assembly plant.11.4(i) $100,000 each year is for a grant to a 11.5Minnesota public postsecondary institution 11.6with a total student enrollment under 7,000 11.7students, that has an existing women's 11.8hockey team competing in Division I in the 11.9Western Collegiate Hockey Association. 11.10The institution may use the grant for 11.11equipment, facility improvements, travel and 11.12compensation for coaches, trainers, and other 11.13necessary personnel.11.14(j) $450,000 each year is to establish a center 11.15for workforce and economic development 11.16at the Mesabi Range Community and 11.17Technical College and to enhance eFolio 11.18Minnesota. The board, in cooperation with 11.19the Iron Range Resources and Rehabilitation 11.20Board (IRRRB) and the Department of 11.21Employment and Economic Development, 11.22must establish the center to provide on-site 11.23and Internet-based support and technical 11.24assistance to users of the state's eFolio 11.25Minnesota system to promote workforce and 11.26economic development. The center must 11.27assist local economic development agencies 11.28and officials to enable them to access 11.29workforce information generated through the 11.30eFolio Minnesota system. The board must 11.31enhance the eFolio Minnesota system as 11.32necessary to serve these purposes. The center 11.33must report annually to the IRRRB and the 11.34Department of Employment and Economic 11.35Development on the outcomes of the center's 11.36activities.12.1(k) $1,000,000 the first year is to identify 12.2and improve on practices for selecting and 12.3purchasing textbooks and course materials 12.4that are used by students. The board, in 12.5collaboration with the Minnesota State 12.6University Student Association (MSUSA) 12.7and the Minnesota State College Student 12.8Association (MSCSA) must develop 12.9and implement pilot projects with this 12.10appropriation to address the financial burden 12.11that textbook prices and requirements place 12.12on students. These projects may include 12.13textbook rental programs, cooperative 12.14purchasing efforts, training, and education 12.15and awareness programs for students and 12.16faculty on cost considerations and textbook 12.17options. The student associations must 12.18be fully involved in the development and 12.19implementation of any project using this 12.20appropriation. Each student association 12.21must vote to approve a project before it is 12.22implemented. MSUSA and MSCSA must 12.23report to the committees of the legislature 12.24responsible for higher education finance by 12.25February 15, 2009, on the success of the pilot 12.26projects. This money is available until June 12.2730, 2009.

12.28Subd. 4.Board Policies

12.29(a) The board must adopt a policy that allows 12.30students to add the cost of textbooks and 12.31required course materials purchased at a 12.32campus bookstore, owned by or operated 12.33under a contract with the campus, to the 12.34existing waivers or payment plans for tuition 12.35and fees.13.1(b) The board must adopt a policy setting 13.2the maximum number of semester credits 13.3required for a baccalaureate degree at 120 13.4semester credits or the equivalent and the 13.5number of semester credits required for an 13.6associate degree at 60 semester credits or the 13.7equivalent.

13.813.9Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

13.10Subdivision 1.Total Appropriation$696,082,000$742,143,000

13.11The amounts that may be spent for each 13.12purpose are specified in the following 13.13subdivisions.

13.14Subd. 2.Operations and Maintenance667,550,000667,323,000

13.15(a) This appropriation includes amounts for 13.16the board:13.17(1) to make investments in the university's 13.18technology and related infrastructure;13.19(2) to award faculty and staff compensation 13.20increases differentially;13.21(3) for the board's health workforce and 13.22clinical sciences initiative;13.23(4) initiatives in science and engineering;13.24(5) initiatives relating to the environment, 13.25agriculture, and renewable energy; and13.26(6) for advancing education, including an 13.27Ojibwe Indian language program on the 13.28Duluth campus.13.29(b) $2,250,000 each year is to establish 13.30banded tuition at the Morris, Crookston, and 13.31Duluth campuses to reduce tuition costs for 13.32students.14.1(c) $7,000,000 for the biennium is for 14.2scholarships to mitigate the effects of rising 14.3tuition on Minnesota students and families. 14.4This appropriation must be matched with 14.5$2 of nonstate money for each $1 of state 14.6money.14.7(d) $12,404,000 in the second year is to 14.8reduce the proposed tuition rate increase. 14.9Any of this amount that is not used by the 14.10board to reduce tuition cancels to the general 14.11fund.14.12(e) $300,000 the first year is for the Center 14.13for Transportation Studies to complete a 14.14study to assess public policy options for 14.15reducing the volume of greenhouse gases 14.16emitted from the transportation sector in 14.17Minnesota. The Center for Transportation 14.18Studies must report its preliminary findings 14.19to the legislature by February 1, 2008, and 14.20must issue its full report by June 1, 2008. 14.21This is a onetime appropriation.14.22(f) $250,000 each year is to establish an India 14.23Center to improve and promote relations with 14.24India and Southeast Asia. The center must 14.25partner with public and private organizations 14.26in Minnesota to: 14.27(1) foster an understanding of the history, 14.28culture, and values of India;14.29(2) serve as a resource and catalyst to 14.30promote economic, governmental, and 14.31academic pursuits involving India; and14.32(3) facilitate educational and business 14.33exchanges and partnerships, collaborative 14.34research, and teaching and training activities 14.35for Minnesota students and teachers.15.1The Board of Regents may establish an 15.2advisory council to facilitate the mission 15.3and objectives of the India Center and must 15.4report on the progress of the India Center by 15.5February 15, 2008, to the governor and chairs 15.6of the legislative committees responsible for 15.7higher education finance. This is a onetime 15.8appropriation.15.9(g) $750,000 in the first year is to assist in 15.10the formation of the neighborhood alliance 15.11and for projects identified in section 8. The 15.12alliance, the Board of Regents, and the city of 15.13Minneapolis may cooperate on the projects 15.14and may use a public services of other entities 15.15to complete all or a portion of a project.15.16(h) $300,000 the first year is to establish a 15.17Dakota language teacher training immersion 15.18program on the Twin Cities campus to 15.19prepare teachers to teach in Dakota language 15.20immersion programs. This is a onetime 15.21appropriation.15.22(i) $400,000 each year is for the Minnesota 15.23Institute for Sustainable Agriculture to 15.24provide funds for on-station and on-farm 15.25field scale research and outreach to develop 15.26and test the agronomic and economic 15.27requirements of diverse strands of prairie 15.28plants and other perennials for bioenergy 15.29systems including but not limited to 15.30multiple species selection and establishment, 15.31ecological management between planting 15.32and harvest, harvest technologies, financial 15.33and agronomic risk management, farmer 15.34goal setting and adoption of technologies, 15.35integration of wildlife habitat into 16.1management approaches, evaluation of 16.2carbon and other benefits, and robust polices 16.3needed to induce farmer conversion on 16.4marginal lands.

16.5Subd. 3.Health Care Access Fund2,157,0002,157,000

16.6This appropriation is from the health care 16.7access fund and is for primary care education 16.8initiatives.

16.9Subd. 4.Special Appropriation65,813,00065,436,000

16.10(a) Agriculture and Extension Service52,625,00052,275,000

16.11(1) For the Agricultural Experiment 16.12Station, Minnesota Extension Service. This 16.13appropriation includes funding to promote 16.14alternative livestock research and outreach 16.15at the Minnesota Institute for Sustainable 16.16Agriculture, and to promote sustainable and 16.17organic agricultural research and education. 16.18(2) This appropriation includes funding 16.19for research efforts that demonstrate a 16.20renewed emphasis on the needs of the state's 16.21production agriculture community and a 16.22continued focus on renewable energy derived 16.23from Minnesota biomass resources including 16.24agronomic crops, plant and animal wastes, 16.25and native plants or trees, with priority for 16.26extending the Minnesota vegetable growing 16.27season; fertilizer and soil fertility research 16.28and development; treating and curing human 16.29diseases utilizing plant and livestock cells; 16.30using biofuel production coproducts as 16.31feed for livestock; and a rapid agricultural 16.32response fund for current or emerging 16.33animal, plant, and insect problems affecting 16.34production or food safety. In addition, the 17.1appropriation may be used to secure a facility 17.2and retain current faculty levels for poultry 17.3research currently conducted at UMore Park.17.4(3) In the area of renewable energy, priority 17.5should be given to projects pertaining to: 17.6biofuel and other energy production from 17.7small grains; alternative bioenergy crops and 17.8cropping systems; and growing, harvesting, 17.9and transporting biomass plant material.17.10(4) This appropriation includes funding for 17.11the college of food, agricultural, and natural 17.12resources sciences to establish and maintain 17.13a statewide organic research and education 17.14initiative to provide leadership for organic 17.15agronomic, horticultural, livestock, and food 17.16systems research, education, and outreach 17.17and for the purchase of state-of-the-art 17.18laboratory, planting, tilling, harvesting, and 17.19processing equipment necessary for this 17.20project.17.21(5) By February 1, 2009, the Board 17.22of Regents must report to the legislative 17.23committees with responsibility for agriculture 17.24and higher education finance on the research 17.25and initiatives under this paragraph.17.26(6) The base appropriation is $51,775,000 17.27each year of the biennium ending June 30, 17.282011.

17.29(b) Health Sciences5,275,0005,275,000

17.30$346,000 each year is to support up to 12 17.31resident physicians each year in the St. 17.32Cloud Hospital family practice residency 17.33program. The program must prepare doctors 17.34to practice primary care medicine in the rural 17.35areas of the state. The legislature intends 18.1this program to improve health care in rural 18.2communities, provide affordable access to 18.3appropriate medical care, and manage the 18.4treatment of patients in a more cost-effective 18.5manner.18.6The remainder of this appropriation is for 18.7the rural physicians associates program, the 18.8Veterinary Diagnostic Laboratory, health 18.9sciences research, dental care, and the 18.10Biomedical Engineering Center.

18.11(c) Institute of Technology1,387,0001,387,000

18.12For the Geological Survey and the talented 18.13youth mathematics program.

18.14(d) System Specials6,526,0006,526,000

18.15For general research, student loans matching 18.16money, industrial relations education, 18.17Natural Resources Research Institute, Center 18.18for Urban and Regional Affairs, and the Bell 18.19Museum of Natural History. $100,000 is 18.20added to the base appropriation for industrial 18.21relations education.

18.2218.23Subd. 5.University of Minnesota and Mayo Foundation Partnership17,000,0007,000,000

18.24For the direct and indirect expenses of the 18.25collaborative research partnership between 18.26the University of Minnesota and the Mayo 18.27Foundation for research in biotechnology 18.28and medical genomics. $7,000,000 is added 18.29to the base. This appropriation is available 18.30until expended. An annual report on the 18.31expenditure of these funds must be submitted 18.32to the governor and the chairs of the senate 18.33and house committees responsible for higher 18.34education and economic development by 18.35June 30 of each fiscal year.

19.1Subd. 6.Academic Health Center

19.2The appropriation for Academic Health 19.3Center funding under Minnesota Statutes, 19.4section 297F.10, is $22,250,000 each year.

19.5Sec. 6. MAYO CLINIC

19.6Subdivision 1.Total Appropriation$1,202,000$1,250,000

19.7The amounts that may be spent for each 19.8purpose are specified in the following 19.9subdivisions.

19.10Subd. 2.Medical School591,000615,000

19.11The state of Minnesota must pay a capitation 19.12each year for each student who is a resident 19.13of Minnesota. The appropriation may be 19.14transferred between years of the biennium to 19.15accommodate enrollment fluctuations. The 19.16funding base for this program is $640,000 in 19.17fiscal year 2010 and $665,000 in fiscal year 19.182011.19.19It is intended that during the biennium the 19.20Mayo Clinic use the capitation money to 19.21increase the number of doctors practicing in 19.22rural areas in need of doctors.

19.2319.24Subd. 3.Family Practice and Graduate Residency Program611,000635,000

19.25The state of Minnesota must pay stipend 19.26support for up to 27 residents each year. The 19.27funding base for this program is $660,000 in 19.28fiscal year 2010 and $686,000 in fiscal year 19.292011.19.30    Sec. 7. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING.19.31    Subdivision 1.Membership.A 12-member legislative commission on 19.32postsecondary funding is established consisting of six members of the house of 20.1representatives appointed by the speaker and six members of the senate appointed by 20.2the Subcommittee on Committees of the Committee on Rules and Administration. The 20.3commission may elect a chair and other officers as necessary. 20.4    Subd. 2.Charge.The commission must develop an alternative funding formula 20.5or funding method for postsecondary education that creates incentives for high quality 20.6postsecondary education while maintaining access for students. In developing the formula 20.7or funding method, the commission must consider and address: 20.8    (1) both institutional aid and direct student aid; 20.9    (2) the major cost drivers in postsecondary education, such as inflation and 20.10enrollment; 20.11    (3) federal postsecondary funding and tax incentives for postsecondary education; 20.12and 20.13    (4) funding the formula or funding method within the projected constraints on the 20.14state budget in the coming decade.20.15    Subd. 3.Report.The commission must report its recommendations to the house 20.16Division on Higher Education and Workforce Development Policy and Finance, and the 20.17senate Higher Education Budget and Policy Division by June 30, 2008.20.18    Subd. 4.Expiration.The commission expires June 30, 2008.20.19    Sec. 8. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA 20.20NEIGHBORHOOD ALLIANCE.20.21    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 20.22have the meanings given them.20.23    (b) "Alliance" means a representative body of the constituencies, including, but 20.24not limited to, the University of Minnesota, the city of Minneapolis, and the recognized 20.25neighborhood organizations and business associations referenced in the report.20.26    (c) "Board" means the Board of Regents of the University of Minnesota.20.27    (d) "Report" means the report and appendix entitled Moving Forward Together: 20.28University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to 20.29the legislature in February 2007.20.30    (e) "University partnership district" or "district" means the area located within the 20.31city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East 20.32Como, Prospect Park, and University, as they are defined by the city, and the university's 20.33Minneapolis campus.20.34    (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that 20.35house significant numbers of university students and staff. Transportation and housing 21.1policy analysis and planning must include these areas but they must not be included in 21.2the projects funded through the alliance.21.3    (g) "University" means the University of Minnesota.21.4    Subd. 2.Alliance; functions.The alliance may facilitate, initiate, or manage 21.5projects with the board, city, or other public or private entities that are intended to 21.6maintain the university partnership district as a viable place to study, research, and live. 21.7Projects may include, but are not limited to, those outlined in the report, as well as 21.8efforts to involve students in activities to maintain and improve the university partnership 21.9district; cooperative university and university partnership district long-term planning; and 21.10incentives to increase homeownership within the district with particular emphasis on 21.11employees of the university and of other major employers located within the district.21.12    Subd. 3.Report.The board must report to the legislature by January 15, 2009, on 21.13the expenditure of funds appropriated under section 3.21.14ARTICLE 221.15MINNESOTA GI BILL FOR VETERANS21.16    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to 21.17read:21.18    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 21.19for:21.20    (1) necessary state level administration of financial aid and Minnesota GI Bill 21.21programs, including accounting, auditing, and disbursing state and federal financial aid 21.22funds, and reporting on financial aid programs to the governor and the legislature;21.23    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 21.24and career schools, under sections 
         136A.61 to 
         136A.71 and chapter 141;21.25    (3) administering the Learning Network of Minnesota;21.26    (4) negotiating and administering reciprocity agreements;21.27    (5) publishing and distributing financial aid information and materials, and other 21.28information and materials under section 
         136A.87, to students and parents;21.29    (6) collecting and maintaining student enrollment and financial aid data and 21.30reporting data on students and postsecondary institutions to develop and implement a 21.31process to measure and report on the effectiveness of postsecondary institutions;21.32    (7) administering the federal programs that affect students and institutions on a 21.33statewide basis; and21.34    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 21.35administer the programs under its supervision.22.1EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 22.2qualifying coursework taken on or after that date.22.3    Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.22.4    Subdivision 1.Policy.It is the policy of the state of Minnesota to provide 22.5postsecondary educational assistance to Minnesota veterans who have provided honorable 22.6service to this state and nation as members of the United States armed forces, whether 22.7in peacetime or in war, and to the spouses and children of Minnesota veterans who have 22.8become severely disabled or deceased during or as the direct result of military service.22.9    Subd. 2.Definitions.(a) The definitions in this subdivision apply to this section. 22.10    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 22.11specified.22.12    (c) "Cost of attendance" for both undergraduate and graduate students has the 22.13meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.22.14    (d) "Child" means a natural or adopted child of a person described in subdivision 5, 22.15paragraph (a), clause (1), item (i) or (ii).22.16    (e) "Director" means the director of the Minnesota Office of Higher Education.22.17    (f) "Eligible institution" means a postsecondary institution located in this state 22.18that either (1) is operated by this state; or (2) is operated publicly or privately and, as 22.19determined by the office, maintains academic standards substantially equivalent to those 22.20of comparable institutions operated in this state.22.21    (g) "Eligible student" means a person who:22.22    (1) if the student is an undergraduate student, has applied for the federal Pell Grant 22.23and the Minnesota State Grant;22.24    (2) is maintaining satisfactory academic progress as defined by the institution for 22.25students participating in federal Title IV programs;22.26    (3) is enrolled in an education program leading to a certificate, diploma, or degree 22.27at an eligible institution;22.28    (4) has applied for educational assistance under the Minnesota GI Bill program prior 22.29to the end of the academic term for which the assistance is being requested.22.30    (5) is in compliance with child support payment requirements under section 22.31136A.121, subdivision 2, clause (5).22.32    (h) "Part-time student" means an undergraduate student enrolled for fewer than 12 22.33credits in a semester or the equivalent, or a graduate student as defined by the student's 22.34eligible institution.23.1    (i) "Program" means the Minnesota GI Bill program established in this section, 23.2unless otherwise specified.23.3    (j) "Service-connected" has the meaning given by the United States Department 23.4of Veterans Affairs.23.5    (k) "Veteran" has the meaning given in section 197.447, and also includes a service 23.6member who has fulfilled the requirements for being a veteran but is still serving actively 23.7in the United States armed forces.23.8    Subd. 3.Program established.There is established a program to provide 23.9postsecondary educational assistance to eligible Minnesota veterans and to the children 23.10and spouses of deceased and severely disabled Minnesota veterans. This program may be 23.11cited as the "Minnesota GI Bill program." 23.12    The director, in consultation with the commissioner and in cooperation with 23.13eligible postsecondary educational institutions, shall expend a biennial appropriation 23.14for the purpose of providing postsecondary educational assistance to eligible persons 23.15in accordance with this program. Each public postsecondary educational institution in 23.16the state must participate in the program and each private postsecondary educational 23.17institution in the state is encouraged to participate in the program. Any participating 23.18private institution may suspend or terminate its participation in the program at the end 23.19of any semester or other academic term.23.20    Subd. 4.Duties; responsibilities.(a) The director, in consultation with the 23.21commissioner, shall establish policies and procedures including, but not limited to, 23.22procedures for student application record keeping, information sharing, payment to 23.23participating eligible institutions, and other procedures the director considers appropriate 23.24and necessary for effective and efficient administration of the program established in 23.25this section.23.26    (b) The director, in consultation with the commissioner, may delegate part or 23.27all of the administrative procedures for the program to responsible representatives of 23.28participating eligible institutions.23.29    Subd. 5.Eligibility.(a) A person is eligible for educational assistance under this 23.30section if:23.31    (1) the person is:23.32    (i) a veteran who is serving or has served honorably in any branch or unit of the 23.33United States armed forces at any time on or after August 2, 1990;23.34    (ii) a nonveteran who has served honorably for a total of 16 years or more 23.35cumulatively as a member of the Minnesota national guard or any other active or reserve 24.1component of the United States armed forces, and any part of that service occurred on 24.2or after August 2, 1990;24.3    (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as 24.4a direct result of that military service; or24.5    (iv) the spouse or child of a person described in (i) or (ii) who has a total 24.6and permanent service-connected disability as rated by the United States veterans 24.7administration;24.8    (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's 24.9state of residence at the time of the person's initial enlistment or any reenlistment in 24.10the United States armed forces;24.11    (3) the person receiving the educational assistance is a Minnesota resident, as 24.12defined in section 136A.101, subdivision 8; and24.13    (4) the person receiving the educational assistance is an eligible student.24.14    (b) A person's eligibility terminates when the person becomes eligible for benefits 24.15under section 135A.52.24.16    (c) As proof of honorable service and disability or death status for a veteran or 24.17service member, the director, by policy and in consultation with the commissioner, may 24.18require official documentation, including the person's federal form DD-214 or other official 24.19military discharge papers, correspondence from the United States veterans administration, 24.20birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed 24.21affidavits, proof of residency, proof of identity, or any other official documentation the 24.22director considers necessary to determine an applicant's eligibility status.24.23    (d) The director, in consultation with the commissioner, may deny eligibility or 24.24terminate benefits under this section to any person who has not provided sufficient proof of 24.25eligibility for the program. An applicant may appeal the director's eligibility determination 24.26in writing to the director at any time. The director must rule on any application or appeal 24.27within 30 days of receipt of all documentation that the director requires. Upon receiving 24.28an application with insufficient documentation, the director must notify the applicant 24.29within 30 days of receipt of the application that the application is being suspended pending 24.30receipt by the director of sufficient documentation from the applicant. The decision of the 24.31director regarding an appeal is final; however, an applicant whose appeal of an eligibility 24.32determination has been rejected by the director may submit an additional appeal of that 24.33determination in writing to the director at any time that the applicant is able to provide 24.34substantively significant additional information relating to the person's eligibility for the 24.35program. An approval of an applicant's eligibility by the director following an appeal by 25.1the applicant is not retroactively effective beyond the later of one year previously or the 25.2semester of the person's original application.25.3    Subd. 6.Benefit amount.(a) On approval by the director of an applicant's 25.4eligibility for the program, the applicant shall be awarded, on a funds-available basis, the 25.5educational assistance under the program for use at any time according to program rules 25.6at any eligible institution. Eligibility for the program terminates upon exhaustion of a 25.7person's benefits as specified in paragraph (c).25.8    (b) The amount of educational assistance in any semester or term for an eligible 25.9person must be determined by subtracting from the eligible person's cost of attendance 25.10at that eligible public institution, or in the case of an eligible private institution the cost 25.11of attendance for a comparable program at the Twin Cities campus of the University of 25.12Minnesota, the amount the person received or was eligible to receive in that semester 25.13or term from:25.14    (1) the federal Pell Grant;25.15    (2) the state grant under section 136A.121; and25.16    (3) any federal military or veterans educational benefits, including, but not limited 25.17to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 25.18vocational rehabilitation benefits, and any other federal benefits associated with the 25.19person's status as a veteran, except veterans disability payments from the United States 25.20Department of Veterans Affairs.25.21    (c) The amount of education assistance for any eligible person must not exceed any 25.22of the following amounts:25.23    (1) $1,250 per semester or term of enrollment, or in the case of a part-time student 25.24$625 per semester or term of enrollment;25.25    (2) $3,570 per state fiscal year; and25.26    (3) $10,000 total. 25.27EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 25.28qualifying coursework taken on or after that date.25.29    Sec. 3. ANNUAL REVIEW AND RECOMMENDATION.25.30    The commissioner of veterans affairs, in consultation with the director of higher 25.31education, must annually review veterans' participation level in and expenditures for the 25.32Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15 25.33each year, must make recommendations to the chairs of the senate and house committees 25.34having oversight responsibility for veterans affairs regarding adjustment of individual 25.35benefit levels and program funding.26.1ARTICLE 326.2RELATED HIGHER EDUCATION26.3    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:26.4    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 26.5involving the Minnesota Office of Higher Education and other institutions is governed 26.6by sections section136A.05 and 136A.08, subdivision 8. 26.7    (b) Student financial aid. Data collected and used by the Minnesota Office of 26.8Higher Education on applicants for financial assistance are classified under section 26.9136A.162
         . 26.10    (c) Minnesota college savings plan data. Account owner data, account data, and 26.11data on beneficiaries of accounts under the Minnesota college savings plan are classified 26.12under section 
         136G.05, subdivision 10. 26.13    (d) School financial records. Financial records submitted by schools registering 26.14with the Minnesota Office of Higher Education are classified under section 
         136A.64. 26.15    (e) Enrollment and financial aid data. Data collected from eligible institutions on 26.16student enrollment and federal and state financial aid are governed by sections 136A.121, 26.17subdivision 18, and 136A.1701, subdivision 11.26.18    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision 26.19to read:26.20    Subd. 4.Construction management education surcharge and account.(a) 26.21For nonresidential construction building permits, the surcharge under subdivision 1 26.22is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents, 26.23whichever amount is greater, and designated for and deposited in the construction 26.24management education account.26.25    (b) The construction management education account is created as an account in the 26.26special revenue fund, administered by the Minnesota Office of Higher Education for 26.27the purpose of enhancing construction management education in public postsecondary 26.28institutions. Funds in the account are appropriated to the director of the Minnesota Office 26.29of Higher Education for the purposes of section 136A.127.26.30    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:26.31    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture 26.32Education Leadership Council is established. The council is composed of 16 17 members 26.33as follows:27.1    (1) the chair of the University of Minnesota agricultural education program;27.2    (2) a representative of the commissioner of education;27.3    (3) a representative of the Minnesota State Colleges and Universities recommended 27.4by the chancellor;27.5    (4) the president and the president-elect of the Minnesota Association of Agriculture 27.6Educators;27.7    (5) a representative of the Future Farmers of America Foundation;27.8    (6) a representative of the commissioner of agriculture;27.9    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 27.10University of Minnesota;27.11    (8) a representative of the Minnesota Private Colleges Council;27.12    (9) two members representing agriculture education and agriculture business 27.13appointed by the governor;27.14    (9) (10) the chair of the senate Committee on Agriculture, General Legislation 27.15and Veterans Affairs;27.16    (10) (11) the chair of the house Committee on Agriculture;27.17    (11) (12) the ranking minority member of the senate Committee on Agriculture, 27.18General Legislation and Veterans Affairs, and a member of the senate Education 27.19Committee designated by the Subcommittee on Committees of the Committee on Rules 27.20and Administration; and27.21    (12) (13) the ranking minority member of the house Agriculture Committee, and a 27.22member of the house Education Committee designated by the speaker.27.23    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 27.24(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement 27.25member representing the same constituency.27.26    Sec. 4. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:27.27    Subd. 7. Reports. Instructional expenditure and enrollment data for each 27.28instructional category shall be submitted by the public postsecondary systems to the 27.29Minnesota Office of Higher Education and the Department of Finance and included in the 27.30biennial budget document. The specific data shall be submitted only after the director of 27.31the Minnesota Office of Higher Education has consulted with a data advisory task force to 27.32determine the need, content, and detail of the information.27.33    Sec. 5. [135A.043] RESIDENT TUITION.28.1    (a) A student shall qualify for a resident tuition rate or its equivalent at state 28.2universities and colleges, including the University of Minnesota, if the student meets 28.3all of the following requirements:28.4    (1) high school attendance within the state for three or more years;28.5    (2) graduation from a state high school or attainment within the state of the 28.6equivalent of high school graduation; and28.7    (3) registration as an entering student at, or current enrollment in, a public institution 28.8of higher education.28.9    (b) This section is in addition to any other statute, rule, or higher education 28.10institution regulation or policy providing eligibility for a resident tuition rate or its 28.11equivalent to a student.28.12EFFECTIVE DATE.This section is effective the day following final enactment 28.13and applies to tuition for school terms commencing on or after that date.28.14    Sec. 6. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:28.15    Subd. 2. Performance and accountability. Higher education systems and 28.16campuses are expected to achieve the objectives in subdivision 1 and will be held 28.17accountable for doing so. The legislature is increasing the flexibility of the systems and 28.18campuses to provide greater responsibility to higher education in deciding how to achieve 28.19statewide objectives, and to decentralize authority so that those decisions can be made 28.20at the level where the education is delivered. To demonstrate their accountability, the 28.21legislature expects each system and campus to measure and report on its performance, 28.22using meaningful indicators that are critical to achieving the objectives in subdivision 1, 28.23as provided in section 135A.033. Nothing in this section precludes a system or campus 28.24from determining its own objectives and performance measures beyond those identified 28.25in this section. 28.26    Sec. 7. [135A.104] STUDENT READINESS FOR COLLEGE.28.27    To reduce students' and the state of Minnesota's remedial education costs and 28.28encourage students to take an academically sound high school curriculum, the Minnesota 28.29State Colleges and Universities, in cooperation with the commissioner of education, must 28.30offer the assessment of college readiness test to high school students. The test must be 28.31offered to students no later than the 11th grade, allowing the students to makeup any 28.32identified deficiencies while they are still in high school.28.33    Sec. 8. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:29.1    Subdivision 1. Definitions. As used in this section, the following terms have the 29.2meanings given them.29.3    (a) "Administrator" means the administrator of the institution or other person with 29.4general control and supervision of the institution.29.5    (b) "Public or private postsecondary educational institution" or "institution" means 29.6any of the following institutions having an enrollment of more than 100 persons during 29.7any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 29.8(2) the state universities; (3) the state community colleges; (4) public technical colleges; 29.9(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 29.10and (7) schools subject to either chapter 141, sections 
         136A.61136A.615 to 
         136A.71, or 29.11schools exempt under section 
         136A.657, and which offer educational programs within the 29.12state for an academic year greater than six consecutive months. An institution's report to 29.13the Minnesota Office of Higher Education or the Minnesota Department of Education may 29.14be considered when determining enrollment. 29.15    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota 29.16high school in 1997 or later, and who is (1) registering for more than one class during 29.17a full academic term, such as a quarter or a semester or (2) housed on campus and is 29.18registering for one or more classes. Student does not include persons enrolled in extension 29.19classes only or correspondence classes only.29.20    Sec. 9. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:29.21    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years 29.22of age before the beginning of any term, semester or quarter, in which a course of study 29.23is pursued, or a person receiving a railroad retirement annuity who has reached 60 years 29.24of age before the beginning of the term.29.25    Sec. 10. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:29.26    Subdivision 1. Fees and tuition. Except for an administration fee established by the 29.27governing board at a level to recover costs, to be collected only when a course is taken for 29.28credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 29.29of tuition or activity fees to attend courses offered for credit, audit any courses offered 29.30for credit, or enroll in any noncredit courses in any state supported institution of higher 29.31education in Minnesota when space is available after all tuition-paying students have been 29.32accommodated. A senior citizen enrolled under this section must pay any materials, 29.33personal property, or service charges for the course. In addition, a senior citizen who is 29.34enrolled in a course for credit must pay an administrative fee in an amount established 30.1by the governing board of the institution to recover the course costs. There shall be no 30.2administrative fee charges to a senior citizen auditing a course. For the purposes of this 30.3section and section 
         135A.51, the term "noncredit courses" shall not include those courses 30.4designed and offered specifically and exclusively for senior citizens.30.5    The provisions of this section and section 
         135A.51 do not apply to noncredit courses 30.6designed and offered by the University of Minnesota, and the Minnesota State Colleges 30.7and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 30.8under the provisions of this section and section 
         135A.51 shall not be included by such 30.9institutions in their computation of full-time equivalent students when requesting staff 30.10or appropriations.30.11    Sec. 11. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:30.12    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 30.13shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 30.14courses, nor income limitation imposed in determining eligibility.30.15    (b) A senior citizen enrolled in a closed enrollment contract training or professional 30.16continuing education program is not eligible for benefits under subdivision 1.30.17    Sec. 12. [136A.002] DEFINITIONS.30.18    Subdivision 1.Scope.For purposes of this chapter, the terms defined in this section 30.19have the meanings given them.30.20    Subd. 2.Office of Higher Education or office."Office of Higher Education" or 30.21"office" means the Minnesota Office of Higher Education.30.22    Sec. 13. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:30.23    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 30.24for:30.25    (1) necessary state level administration of financial aid programs, including 30.26accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 30.27financial aid programs to the governor and the legislature;30.28    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 30.29and career schools, under sections 
         136A.61136A.615 to 
         136A.71 and chapter 141;30.30    (3) administering the Learning Network of Minnesota;30.31    (4) negotiating and administering reciprocity agreements;30.32    (5) publishing and distributing financial aid information and materials, and other 30.33information and materials under section 
         136A.87, to students and parents;31.1    (6) collecting and maintaining student enrollment and financial aid data and 31.2reporting data on students and postsecondary institutions to develop and implement a 31.3process to measure and report on the effectiveness of postsecondary institutions;31.4    (7) administering the federal programs that affect students and institutions on a 31.5statewide basis; and31.6    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 31.7administer the programs under its supervision.31.8    Sec. 14. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:31.9    Subd. 5. Expiration. Notwithstanding section 
         15.059, subdivision 5, the advisory 31.10groups established in this section do not expire on June 30, 2007.31.11    Sec. 15. Minnesota Statutes 2006, section 136A.0411, is amended to read:31.12136A.0411 COLLECTING FEES.31.13    The office may charge fees for seminars, conferences, workshops, services, and 31.14materials. The office may collect fees for registration and licensure of private institutions 31.15under sections 
         136A.61136A.615 to 
         136A.71 and chapter 141. The money is annually 31.16appropriated to the office. 31.17    Sec. 16. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:31.18    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 31.19before the last day in January, submit a report to the committees in the house of 31.20representatives and the senate with responsibility for higher education finance on:31.21    (1) participation in the tuition reciprocity program by Minnesota students and 31.22students from other states attending Minnesota postsecondary institutions under a 31.23reciprocity agreement;31.24    (2) reciprocity and resident tuition rates at each institution; and31.25    (3) interstate payments and obligations for each state participating in the tuition 31.26reciprocity program in the prior year.; and31.27    (4) summary statistics on number of graduates by institution, degree granted, and 31.28year of graduation for reciprocity students who attended Minnesota postsecondary 31.29institutions.31.30    Sec. 17. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:31.31    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 31.32educational institution located in this state or in a state with which the office has entered 32.1into a higher education reciprocity agreement on state student aid programs that either (1) 32.2is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 32.3operated publicly or privately and, as determined by the office, meets all of the following: 32.4(i) maintains academic standards substantially equivalent to those of comparable 32.5institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 32.6by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 32.7Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.32.8    Sec. 18. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:32.9    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 32.10responsibility for covering the recognized cost of attendance by the applicant, the 32.11applicant's family, and the government. The amount of a financial stipend must not 32.12exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 32.13deducting the following:32.14    (1) the assigned student responsibility of at least 4645.5 percent of the cost of 32.15attending the institution of the applicant's choosing;32.16    (2) the assigned family responsibility as defined in section 
         136A.101; and 32.17    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.32.18    The minimum financial stipend is $100 per academic year.32.19    Sec. 19. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:32.20    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 32.21the applicant:32.22    (1) is a resident of the state of Minnesota;32.23    (2) has a child 12 years of age or younger, or 14 years of age or younger who is 32.24disabled as defined in section 
         125A.02, and who is receiving or will receive care on a 32.25regular basis from a licensed or legal, nonlicensed caregiver;32.26    (3) is income eligible as determined by the office's policies and rules, but is not a 32.27recipient of assistance from the Minnesota family investment program;32.28    (4) has not earned a baccalaureate degree and has been enrolled full time less than 32.29eight semesters or the equivalent;32.30    (5) is pursuing a nonsectarian program or course of study that applies to an 32.31undergraduate degree, diploma, or certificate;32.32    (6) is enrolled at least half time in an eligible institution; and32.33    (7) is in good academic standing and making satisfactory academic progress.33.1    (b) A student who withdraws from enrollment for active military service is entitled 33.2to an additional semester or the equivalent of grant eligibility and will be considered to be 33.3in continuing enrollment status upon return.33.4    Sec. 20. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; 33.5MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.33.6    Subdivision 1.TEACH.The teacher education and compensation helps program 33.7(TEACH) is established to provide tuition scholarships, education incentives, and an early 33.8childhood teacher retention program to provide retention incentives to early care and 33.9education providers. The director shall make a grant with appropriations for this purpose 33.10to a nonprofit organization licensed to administer the TEACH early childhood program.33.11    Subd. 2.Program components.(a) The nonprofit organization must use the 33.12grant for:33.13    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally 33.14recognized child development associate credential or college-level courses leading to an 33.15associate's or bachelor's degree in early childhood development and school-age care; and 33.16    (2) education incentives of a minimum of $100 to participants in the tuition 33.17scholarship program if they complete a year of working in the early care and education 33.18field.33.19    (b) Applicants for the scholarship must be employed by a licensed early childhood 33.20or child care program and working directly with children, a licensed family child care 33.21provider, or an employee in a school-age program exempt from licensing under section 33.22245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in 33.23awarding the tuition scholarships. Scholarship recipients must contribute ten percent of 33.24the total scholarship and must be sponsored by their employers, who must also contribute 33.25ten percent of the total scholarship. Scholarship recipients who are self-employed must 33.26contribute 20 percent of the total scholarship. 33.27    (c) The organization must also use the grant for teacher retention incentives of 33.28$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives 33.29must be employed by a licensed early childhood or child care program and working 33.30directly with children, a licensed family child care provider, or an employee in a 33.31school-age program exempt from licensing under section 245A.03, subdivision 2, clause 33.32(12). Lower wage earners must be given priority for the retention incentives. The amount 33.33of the retention incentive must be based on the applicant's level of education at the time of 33.34application. A provider is eligible for the retention incentive if the provider:34.1    (1) has worked in the field for at least one year and has been working at the same 34.2location for at least one year at the time of application;34.3    (2) agrees to remain in the provider's current position for a period of at least one 34.4year; and34.5    (3) has an associate's or bachelor's degree or a child development associate's degree.34.6    Subd. 3.Advisory committee.The TEACH early childhood and Minnesota early 34.7childhood teacher retention programs must have an advisory board as prescribed by the 34.8national TEACH organization.34.9    Sec. 21. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION 34.10PROGRAM.34.11    Subdivision 1.Construction Management Education Account Advisory 34.12Committee.The director must establish an advisory committee for the construction 34.13management education account. Members of the committee must include: the executive 34.14vice-president of the Minnesota Mechanical Contractors association or designee, a 34.15chapter manager of one of the Minnesota chapters of the National Electrical Contractors 34.16Association or designee, the executive director of the Associated General Contractors of 34.17Minnesota or designee, two members of the nonresidential construction industry, and a 34.18construction management program coordinator or director from an accredited construction 34.19management program in the Minnesota State Colleges and Universities. Members serve 34.20three-year terms. Advisory committee members are reimbursed for expenses related to 34.21committee activities. The director may accept funds from federal, state, or local public 34.22agencies, or from private foundations or individuals for deposit into the construction 34.23management education account under section 16B.70. All money in the account must 34.24be used for the purposes of this section.34.25    Subd. 2.Grants.Grants from the construction management education account must 34.26be used to maintain and increase the quality and availability of education programs for 34.27the construction industry by awarding grants to accredited construction management 34.28programs in the Minnesota State Colleges and Universities. Grants must be used to 34.29maintain and upgrade facilities and provide greater industry access to modern construction 34.30standards and management practices. In making grants, the director, in consultation with 34.31the committee, must:34.32    (1) confirm the qualifications of any program applying for a grant;34.33    (2) affirm applications for American Council for Construction Education 34.34accreditation and, when funds are available, award grants to complete the accreditation 34.35process;35.1    (3) promote close ties between technical and community colleges and four-year 35.2construction management programs; and 35.3    (4) support the development of new educational programs with specific emphasis on 35.4outreach to the construction industry at large.35.5    Subd. 3.Grant awards.(a) The committee may award grants to a Minnesota State 35.6Colleges and Universities institution to support construction management education and to 35.7promote outreach and continuing education in the construction industry.35.8    (b) An eligible institution must provide one of the following:35.9    (1) a bachelor of science construction management degree accredited by the 35.10American Council for Construction Education;35.11    (2) a degree with an American Council for Construction Education accredited 35.12option, including, but not limited to, Engineering Technology and Industrial Technology;35.13    (3) a bachelor of science degree program documenting placement of more than 50 35.14percent of their graduates with Minnesota nonresidential contractors; and35.15    (4) the development of a construction management curriculum to meet the American 35.16Council for Construction Education criteria.35.17    (c) Grant awards may be made as follows:35.18    (1) $3,000 per graduate during the past academic year up to a maximum of $100,000 35.19for institutions qualifying under paragraph (b), clause (1);35.20    (2) $3,000 per graduate during the past academic year up to a maximum of $100,000 35.21for institutions qualifying under paragraph (b), clause (2);35.22    (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the 35.23past academic year to a maximum of $20,000 for institutions qualifying under paragraph 35.24(b), clause (3);35.25    (4) up to $25,000 for the purpose of becoming accredited by the American Council 35.26for Construction Education for two years which may be renewed if the institution is 35.27continuing progress towards accreditation; and35.28    (5) for faculty recruitment and development in construction management programs, 35.29including support for postgraduate work leading to advanced degrees, visiting lecturer 35.30compensation and expenses, teaching assistant positions, and faculty positions; and35.31    (6) to support general classroom and laboratory operating expenses. 35.32    Grants may only be awarded from the construction management education account 35.33to the extent that funds are available. No other state funding may be provided for these 35.34grants.35.35    Subd. 4.Reports.(a) The director must annually report to the committees of the 35.36legislature responsible for higher education finance by January 15. The report must 36.1include the names of the public postsecondary educational institutions receiving grants, the 36.2amount of the grant, the purposes for each grant, the number of students served, and the 36.3number of placements made to the construction industry for the previous academic year.36.4    (b) After receiving an initial grant, the president of the public postsecondary 36.5educational institution must annually submit a report to the director listing the amount of 36.6all past grants awarded from the construction management education account and the uses 36.7of those funds. The report must be submitted with a request for a new or continuing grant 36.8and at a minimum must include the following:36.9    (1) the number of graduates placed with the Minnesota contractors during the 36.10previous academic year;36.11    (2) the expected enrollment in construction management courses in the upcoming 36.12academic year; and36.13    (3) continuing education and extension courses offered in construction management 36.14during the previous academic year and their enrollments.36.15    Subd. 5.Administration.Up to $15,000 per year from the construction 36.16management education account may be used for the administration of this program.36.17    Sec. 22. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:36.18    Subdivision 1. Scope. For purposes of sections 
         136A.15 to 
         136A.1702 136A.1701, 36.19the terms defined in this section have the meanings ascribed togiven them. 36.20    Sec. 23. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:36.21    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 36.22educational institution that either (1) is operated or regulated by this state, or the Board of 36.23Regents of the University of Minnesota; (2) is operated publicly or privately in another 36.24state, is approved by the United States Secretary of Education, and, as determined by 36.25the office, maintains academic standards substantially equal to those of comparable 36.26institutions operated in this state; (3) is licensed or registered as a postsecondary institution 36.27by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 36.28Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 36.29also includes any institution chartered in a province.36.30    Sec. 24. Minnesota Statutes 2006, section 136A.16, subdivision 1, is amended to read:36.31    Subdivision 1. Designation. Notwithstanding chapter 16C, the Minnesota Office of 36.32Higher Education is designated as the administrative agency for carrying out the purposes 37.1and terms of sections 
         136A.15 to 
         136A.1702 136A.1701. The office may establish one 37.2or more loan programs. 37.3    Sec. 25. Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read:37.4    Subd. 2. Rules. The office shall adopt policies and prescribe appropriate rules to 37.5carry out the purposes of sections 
         136A.15 to 
         136A.1702 136A.1701. The policies and 37.6rules except as they relate to loans under section 
         136A.1701 must be compatible with 37.7the provisions of the National Vocational Student Loan Insurance Act of 1965 and the 37.8provisions of title IV of the Higher Education Act of 1965, and any amendments thereof. 37.9    Sec. 26. Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read:37.10    Subd. 5. Agencies. The office may contract with guarantee agencies, insurance 37.11agencies, collection agencies, or any other person, to carry out the purposes of sections 37.12136A.15
          to 
         136A.1702 136A.1701. 37.13    Sec. 27. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:37.14    Subd. 8. Investment. Money made available to the office that is not immediately 37.15needed for the purposes of sections 
         136A.15 to 
         136A.1702 136A.1701 may be invested 37.16by the office. The money must be invested in bonds, certificates of indebtedness, and 37.17other fixed income securities, except preferred stocks, which are legal investments for the 37.18permanent school fund. The money may also be invested in prime quality commercial 37.19paper that is eligible for investment in the state employees retirement fund. All interest 37.20and profits from such investments inure to the benefit of the office or may be pledged for 37.21security of bonds issued by the office or its predecessor, the Minnesota Higher Education 37.22Coordinating Board. 37.23    Sec. 28. Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read:37.24    Subd. 9. Staff. The office may employ the professional and clerical staff the 37.25director deems necessary for the proper administration of the loan programs established 37.26and defined by sections 
         136A.15 to 
         136A.1702 136A.1701. 37.27    Sec. 29. Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read:37.28    Subd. 10. Director. Subject to its directives and review, the office may delegate to 37.29the director the responsibility for issuance of public information concerning provisions of 37.30sections 
         136A.15 to 
         136A.1702 136A.1701, for design of loan application forms, and for 37.31prescribing procedures for submission of applications for loans. 38.1    Sec. 30. Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read:38.2    Subdivision 1. Eligibility. A student is eligible to apply for a loan under sections 38.3136A.15
          to 
         136A.1702 136A.1701 if the office finds that the student is an eligible student 38.4as defined in those sections and is eligible for a loan under federal laws and regulations 38.5governing the federal guaranteed student loan programs. 38.6    Sec. 31. Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to 38.7read:38.8    Subdivision 1. Establishment of program. The Minnesota Office of Higher 38.9Education may provide for programs of loans which may be made in lieu of or in addition 38.10to loans authorized under sections 
         136A.15 to 
         136A.1702 136A.1701 and applicable 38.11provisions of federal law as provided in this section. 38.12    Sec. 32. Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to 38.13read:38.14    Subd. 2. Purpose of program. The purpose of the loan programs under this section 38.15is to provide financial assistance for the postsecondary education of students who are 38.16eligible students whether or not such students qualify for a loan or loans under other 38.17provisions of sections 
         136A.15 to 
         136A.1702 136A.1701. 38.18    Loans granted to students may be used solely for educational purposes.38.19    Sec. 33. Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to 38.20read:38.21    Subd. 5. Maximum loans for students. Loans made under this section or sections 38.22136A.15
          to 
         136A.1702 136A.1701 to an individual eligible student for vocational study 38.23may be made for a maximum of three academic years or their equivalent and loans made 38.24to any other individual eligible student may be made for a maximum of eight academic 38.25years or their equivalent. 38.26    Sec. 34. [136A.1704] LOAN FORGIVENESS PROGRAM FOR 38.27SPEECH-LANGUAGE PATHOLOGISTS.38.28    Subdivision 1.Creation of account.A loan forgiveness program account is 38.29established in the special revenue fund in the state treasury to promote the recruitment and 38.30retention of licensed speech-language pathologists to work with students with speech or 38.31hearing disorders. Money appropriated to this account does not cancel but is available 39.1until expended. Money in the account is appropriated to the director of the Minnesota 39.2Office of Higher Education for the purpose of this section.39.3    Subd. 2.Eligibility for loan forgiveness.A student loan administered by the 39.4Minnesota Office of Higher Education under section 136A.16, subdivision 1, may be 39.5forgiven if the recipient graduates from a postsecondary institution with a degree in 39.6speech-language pathology, becomes licensed to work with students with speech and 39.7hearing disorders as defined in Minnesota Rules, part 3525.1343, and is employed as a 39.8speech-language pathologist with primary responsibilities to work with students who are 39.9diagnosed with speech or hearing disorders.39.10    Subd. 3.Loan forgiveness.(a) To the extent of available appropriations, one-fourth 39.11of the principal of the outstanding loan amount shall be forgiven for each year of eligible 39.12employment or a pro rata amount for eligible employment during part of a school year, 39.13part-time employment, or other eligible part-time work. Loans for $2,500 or less may be 39.14forgiven at the rate of up to $1,250 per year. Employment with the following Minnesota 39.15schools and programs is eligible for determining loan forgiveness:39.16    (1) a school or program operated by a school district or a group of school districts;39.17    (2) a tribal contract school eligible to receive aid according to section 124D.83;39.18    (3) a charter school;39.19    (4) a private school;39.20    (5) a Head Start program;39.21    (6) an early childhood family education program; or39.22    (7) a program providing early intervention services to children with disabilities 39.23who have not entered kindergarten.39.24    (b) If an eligible recipient has an outstanding loan administered by the Minnesota 39.25Office of Higher Education, the duty to make payments of principal and interest may 39.26be deferred during any time period the person is enrolled at least one-half time in an 39.27advanced degree program in a field related to working with students with speech or 39.28hearing disabilities. To defer loan obligations, the person shall provide written notification 39.29to the Minnesota Office of Higher Education.39.30    (c) The Minnesota Office of Higher Education shall approve the loan forgiveness 39.31and deferral, and develop procedures to administer the program.39.32    Sec. 35. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:39.33    Subd. 3. Payments. Work-study payments shall be made to eligible students by 39.34postsecondary institutions as provided in this subdivision.40.1    (a) Students shall be selected for participation in the program by the postsecondary 40.2institution on the basis of student financial need.40.3    (b) In selecting students for participation, priority must be given to students enrolled 40.4for at least 12 credits. In each academic year, a student may be awarded work-study 40.5payments for one period of nonenrollment or less than half-time enrollment if the student 40.6will enroll on at least a half-time basis during the following academic term.40.7    (c) Students will be paid for hours actually worked and the maximum hourly rate 40.8of pay shall not exceed the maximum hourly rate of pay permitted under the federal 40.9college work-study program.40.10    (d) Minimum pay rates will be determined by an applicable federal or state law.40.11    (e) The office shall annually establish a minimum percentage rate of student 40.12compensation to be paid by an eligible employer.40.13    (f) Each postsecondary institution receiving money for state work-study grants 40.14shall make a reasonable effort to place work-study students in employment with eligible 40.15employers outside the institution. However, a public employer other than the institution 40.16may not terminate, lay off, or reduce the working hours of a permanent employee for the 40.17purpose of hiring a work-study student, or replace a permanent employee who is on layoff 40.18from the same or substantially the same job by hiring a work-study student.40.19    (g) The percent of the institution's work-study allocation provided to graduate 40.20students shall not exceed the percent of graduate student enrollment at the participating 40.21institution.40.22    (h) An institution may use up to 30 percent of its allocation for student internships 40.23with private, for-profit employers.40.24    Sec. 36. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:40.25    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 40.26to issue revenue bonds whose aggregate principal amount at any time shall not exceed 40.27$800,000,000$950,000,000 and to issue notes, bond anticipation notes, and revenue 40.28refunding bonds of the authority under the provisions of sections 
         136A.25 to 
         136A.42, 40.29to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 40.30renovating, improving, furnishing, or equipping one or more projects or parts thereof. 40.31    Sec. 37. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:40.32    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 40.33shall award grants to foster postsecondary attendance and retention by providing outreach 40.34services to historically underserved students in grades six through 12 and historically 41.1underrepresented college students. Grants must be awarded to programs that provide 41.2precollege services, including, but not limited to:41.3    (1) academic counseling;41.4    (2) mentoring;41.5    (3) fostering and improving parental involvement in planning for and facilitating a 41.6college education;41.7    (4) services for students with English as a second language;41.8    (5) academic enrichment activities;41.9    (6) tutoring;41.10    (7) career awareness and exploration;41.11    (8) orientation to college life;41.12    (9) assistance with high school course selection and information about college 41.13admission requirements; and41.14    (10) financial aid counseling.41.15    Grants shall be awarded to postsecondary institutions, professional organizations, 41.16community-based organizations, or others deemed appropriate by the director.41.17    Grants shall be awarded for one year and may be renewed for a second year with 41.18documentation to the Minnesota Office of Higher Education of successful program 41.19outcomes.41.20    Sec. 38. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:41.21    Subd. 2. Eligible students. Eligible students include students in grades six through 41.2212 who meet one or more of the following criteria:41.23    (1) are counted under section 1124(c) of the Elementary and Secondary Education 41.24Act of 1965 (Title I);41.25    (2) are eligible for free or reduced-price lunch under the National School Lunch Act;41.26    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 41.27I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or41.28    (4) are a member of a group traditionally underrepresented in higher education.41.29    Eligible undergraduate students include those who met the student eligibility criteria 41.30as 6th through 12th graders.41.31    Sec. 39. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:41.32    Subd. 3. Application process. The director of the Minnesota Office of Higher 41.33Education shall develop a grant application process. The director shall attempt to support 42.1projects in a manner that ensures that eligible students throughout the state have access 42.2to precollegeprogram services.42.3    The grant application must include, at a minimum, the following information:42.4    (1) a description of the characteristics of the students to be served reflective of the 42.5need for services listed in subdivision 1;42.6    (2) a description of the services to be provided and a timeline for implementation of 42.7the activities;42.8    (3) a description of how the services provided will foster postsecondary attendance42.9and support postsecondary retention;42.10    (4) a description of how the services will be evaluated to determine whether the 42.11program goals were met; and42.12    (5) other information as identified by the director.42.13Grant recipients must specify both program and student outcome goals, and performance 42.14measures for each goal.42.15    Sec. 40. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:42.16    Subd. 6. Program evaluation. Each grant recipient must annually submit a report 42.17to the Minnesota Office of Higher Education delineating its program and student outcome 42.18goals, and activities implemented to achieve the stated outcomes. The goals must be 42.19clearly stated and measurable. Grant recipients are required to collect, analyze, and report 42.20on participation and outcome data that enable the office to verify that the program goals 42.21were met. The office shall maintain:42.22    (1) information about successful precollege program and undergraduate student 42.23retention program activities for dissemination to individuals throughout the state interested 42.24in adopting or replicating successful program practices; and42.25    (2) data on the success of the funded projects in increasing the high school 42.26graduation and, college participation, and college graduation rates of students served 42.27by the grant recipients. The office may convene meetings of the grant recipients, as 42.28needed, to discuss issues pertaining to the implementation of precollege services and 42.29undergraduate retention programs.42.30    Sec. 41. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:42.31    Subdivision 1. Membership. The board consists of 15 17 members appointed by 42.32the governor with the advice and consent of the senate. At least one member of the board 42.33must be a resident of each congressional district. Three members must be students who are 42.34enrolled at least half time in a degree, diploma, or certificate program or have graduated 43.1from an institution governed by the board within one year of the date of appointment. The 43.2student members shall include: one member from a community college, one member from 43.3a state university, and one member from a technical college. Two members must be 43.4members of the AFL-CIO. The remaining members must be appointed to represent the 43.5state at large.43.6    Sec. 42. [136F.045] UNION MEMBER SELECTION.43.7    Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting, 43.8screening, and recommending qualified candidates for their members of the board. The 43.9AFL-CIO must develop a statement of selection criteria for board membership and a 43.10process for recommending candidates. Beginning in 2008, and every six years thereafter, 43.11the AFL-CIO must recommend four candidates for the two board positions to the governor 43.12by April 15. The governor must appoint two of the candidates to the board of trustees.43.13    Sec. 43. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:43.14    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 43.15in consultation with the commissioners of employee relations and finance, may develop 43.16policies to allow system office or campus employees on salaries, as defined in section 43.1743A.17, subdivision 1
         , to use negative time reporting in which employees report only that 43.18time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation 43.19with the commissioners of employee relations and finance, shall evaluate the use of 43.20negative time reporting and its potential for use with other state employees.43.21    Sec. 44. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:43.22    Subd. 2. Activity funds. All receipts attributable to the state colleges and 43.23universities activity funds and deposited in the state treasury are appropriated to the board 43.24and are not subject to budgetary control as exercised by the commissioner of finance.43.25    Sec. 45. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 43.26to read:43.27    Subd. 4.Banking services.Notwithstanding section 16A.27, the board shall 43.28have authority to control the amount and manner of deposit of all receipts described in 43.29this section in depositories selected by the board. The board's authority shall include 43.30specifying the considerations, financial activities, and conditions required from the 43.31depository, including the requirement of collateral security or a corporate surety bond 43.32as described in section 118A.03. The board may compensate the depository, including 44.1paying a reasonable charge to the depository, maintaining appropriate compensating 44.2balances with the depository, or purchasing non-interest-bearing certificates of deposit 44.3from the depository for performing depository-related services.44.4    Sec. 46. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:44.5    Subd. 5. Amount of matching grant. The amount of the matching grant for a 44.6beneficiary equals:44.7    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 44.8of the contributions made to the beneficiary's account during the calendar year, not to 44.9exceed $300 $400; and44.10    (2) if the beneficiary's family income is more than $50,000 but not more than 44.11$80,000, five ten percent of the sum of the contributions made to the beneficiary's account 44.12during the calendar year, not to exceed $300 $400.44.13    Sec. 47. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE 44.14AT WORTHINGTON; YMCA LEASE AGREEMENT.44.15    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter 44.16into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on 44.17the Minnesota West Community and Technical College at Worthington campus for the 44.18construction of a YMCA facility. The lease may also include the city of Worthington.44.19    (b) Siting and design of the facility must be consistent with the college's master 44.20plan and Minnesota State Colleges and Universities' building standards. Minnesota 44.21West Community and Technical College may negotiate for use of the facility for college 44.22purposes. The lease must contain a provision that the lease shall terminate if the improved 44.23property is no longer used for the partial benefit of the students at the Worthington campus.44.24    Sec. 48. INTEREST RATE SWAP AND OTHER AGREEMENTS; 44.25IMPLEMENTATION PLAN.44.26    The Minnesota Office of Higher Education must develop a plan for implementing 44.27interest rate exchanges, swaps, or other interest rate protection agreements for its student 44.28loan programs. The plan must be presented in a report to the committees of legislature 44.29responsible for higher education finance by January 15, 2008. The report must address 44.30potential contracting arrangements and options, benefits and risks associated with these 44.31agreements, and the potential impacts on the student loan program, its assets, and its 44.32objectives.45.1    Sec. 49. REPEALER.45.2(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6; 45.3135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, are repealed.45.4(b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, are repealed.45.5ARTICLE 445.6TEXTBOOK PRICING AND ACCESS45.7    Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.45.8    Subdivision 1.Short title.This section may be cited as the Textbook Disclosure, 45.9Pricing, and Access Act.45.10    Subd. 2.Purpose and intent.The purpose of this act is to ensure that every student 45.11in higher education is offered better and more timely access to affordable course materials 45.12by educating and informing faculty, students, administrators, institutions, bookstores, and 45.13publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the 45.14policy of the state of Minnesota that all involved parties must work together to identify 45.15ways to decrease the cost of course materials for students while protecting the academic 45.16freedom of faculty members to provide high-quality course materials for students. 45.17    Subd. 3.Definitions.For the purposes of this section, the following definitions 45.18have the meanings given.45.19    (1) "Bundled" means any course material packaged together to be sold for one price.45.20    (2) "Bookstore" means a store that is affiliated with a postsecondary institution or 45.21has a contract with a postsecondary institution to sell course materials to students enrolled 45.22at the postsecondary institution.45.23    (3) "Course material" means textbooks as defined in section 297A.67, subdivision 45.2413, custom course materials, and instructional materials as defined in section 297A.67, 45.25subdivision 13a, sold to students by a bookstore in a bundled or unbundled form.45.26    (4) "Custom course materials" means any combination of textbooks, course 45.27materials, or any part thereof that has been customized, produced, and sold by a distributor 45.28or publisher specifically for a specific course, program, or field of study.45.29    (5) "Distributor" means an independent contractor, including its employees or agents, 45.30that is in the business of selling, distributing, advertising, marketing, or maintaining an 45.31inventory of course materials for a postsecondary institution or bookstore.45.32    (6) "Postsecondary institution" means a Minnesota institution defined under section 45.33136A.101, subdivision 4.46.1    (7) "Publisher" means a publishing house, firm, or business, including its employees 46.2or agents, acting with authority of the publisher that publishes, sells, markets, or maintains 46.3an inventory of course materials to a postsecondary institution or bookstore.46.4    Subd. 4.Publisher disclosures.(a) Beginning January 1, 2008, a publisher or 46.5distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty 46.6member or other individual at a postsecondary institution responsible for selecting course 46.7material within seven days of a request, at least the following:46.8    (1) the title, edition, author, and International Standard Book Number (ISBN) of all 46.9course material and custom course materials, if applicable;46.10    (2) the price for the course material;46.11    (3) whether the required course material is bundled with optional material, whether 46.12it can be unbundled, and the price for each bundled and unbundled component;46.13    (4) whether the material is available in an alternative format and the cost for the 46.14alternatively formatted material; and46.15    (5) summary of revisions to requested course material for the previous edition or 46.16release for materials that have been in circulation for five years or less and a detailed 46.17breakdown of revisions must be made available in writing within seven days of the request.46.18    (b) A publisher or distributor must make all bundled course materials available to 46.19bookstores or postsecondary institutions in an unbundled form or provide written or verbal 46.20notice within seven days of a request under this subdivision if the unbundled materials are 46.21not available. 46.22    (c) A publisher or distributor must post on its Web site, include in its marketing 46.23materials, or disclose in writing when a request is made under this subdivision for the 46.24return policy for course material, including any penalties or conditions for returns.46.25    (d) Disclosure under this section is not required for mass market and trade books that 46.26are not published, marketed, or sold primarily for use in or by postsecondary institutions.46.27    Subd. 5.Payment for course material.Each postsecondary institution must adopt 46.28policies that allow students to add the costs of course material purchased at a bookstore 46.29to existing waivers or payment plans for tuition and fees. 46.30    Subd. 6.Notice to purchase.(a) An instructor shall make reasonable efforts to 46.31notify a bookstore of the final order for required and recommended course material 46.32including, but not limited to, alternative formats, previous editions, or custom course 46.33materials at least 30 days prior to the commencement of the term.46.34    (b) The bookstore must notify students of the following information concerning the 46.35required and recommended course material at least 15 days prior to the commencement of 46.36the term for which the course material is required, including, but not limited to:47.1    (1) the title, edition, author, and International Standard Book Number (ISBN) of 47.2the course material;47.3    (2) the price for the course material;47.4    (3) whether the required course material is bundled with optional material, whether 47.5it can be unbundled, and the price for each bundled and unbundled component; and47.6    (4) whether the material is available in an alternative format and the cost for the 47.7alternatively formatted material.47.8    Subd. 7.Educational strategies.(a) During the biennium ending June 30, 2009, 47.9the Minnesota Office of Higher Education shall work with postsecondary institutions 47.10to develop educational materials based upon the findings of the Minnesota Textbook 47.11Advisory Task Force recommendations and other relevant information, convene and 47.12sponsor meetings and workshops, and provide educational materials for faculty, students, 47.13administrators, institutions, bookstores, and publishers in order to educate all interested 47.14parties on strategies for reducing the costs of course materials for students attending 47.15postsecondary institutions. 47.16    (b) The Minnesota Office of Higher Education must develop and maintain a 47.17standardized request form for publisher disclosure under this section with all required 47.18information. The request form must be in an electronic format that can be downloaded 47.19from the office Web site.47.20ARTICLE 547.21PRIVATE INSTITUTIONS47.22    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:47.23136A.61 POLICY.47.24    The legislature has found and hereby declares that the availability of legitimate 47.25courses and programs leading to academic degrees offered by responsible private not for 47.26profit and for profit institutions of postsecondary education and the existence of legitimate 47.27private colleges and universities are in the best interests of the people of this state. The 47.28legislature has found and declares that the state can provide assistance and protection 47.29for persons choosing private institutions and programs, by establishing policies and 47.30procedures to assure the authenticity and legitimacy of private postsecondary education 47.31institutions and programs. The legislature has also found and declares that this same 47.32policy applies to any private and public postsecondary educational institution located in 47.33another state or country which offers or makes available to a Minnesota resident any 47.34course, program or educational activity which does not require the leaving of the state 47.35for its completion.48.1    Sec. 2. [136A.615] CITATION.48.2    Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and 48.3Out-of-State Public Postsecondary Education Act."48.4    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:48.5    Subd. 3. School. "School" means: 48.6    (1) any individual, partnership, company, firm, society, trust, association, 48.7corporation, or any combination thereof, which (a) (i) is, owns, or operates a private, 48.8nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, for 48.9profit postsecondary education institution; (iii) provides a postsecondary instructional 48.10program or course leading to a degree whether or not for profit; (c) (iv) is, owns, or 48.11operates a private, postsecondary education institution which uses the term "college", 48.12"academy", "institute" or "university" in its name; or (d) operates for profit and provides 48.13programs or courses which are intended to allow an individual to fulfill in part or totally 48.14the requirements necessary to maintain a license to practice an occupation. School shall 48.15also mean48.16    (2) any public postsecondary educational institution located in another state or 48.17country which offers or makes available to a Minnesota resident any course, program or 48.18educational activity which does not require the leaving of the state for its completion; or48.19    (3) any individual, entity, or postsecondary institution located in another state 48.20that contracts with any school located within the state of Minnesota for the purpose of 48.21providing educational programs, training programs, or awarding postsecondary credits 48.22or continuing education credits to Minnesota residents that may be applied to a degree 48.23program.48.24    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:48.25136A.63 REGISTRATION.48.26    Subdivision 1.Annual registration. All schools located within Minnesota and 48.27all schools located outside Minnesota which offer degree programs or courses within 48.28Minnesota shall register annually with the office.48.29    Subd. 2.Sale of an institution.Within 30 days of a change of ownership the school 48.30must submit a registration renewal application, all usual and ordinary information and 48.31materials for an initial registration, and applicable registration fees for a new institution. 48.32For purposes of this subdivision, "change of ownership" means a merger or consolidation 48.33with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 49.1the assets of a school; the transfer of a controlling interest of at least 51 percent of the 49.2school's stock; or a change in the not-for-profit or for profit status of a school.49.3    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:49.4136A.64 INFORMATION REQUIRED FOR REGISTRATION.49.5    Subdivision 1. Schools to provide information. As a basis for registration, schools 49.6shall provide the office with such information as the office needs to determine the nature 49.7and activities of the school, including but not limited to, requirements for admission, 49.8enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty 49.9employed. The office shall have the authority to verify the accuracy of the information 49.10submitted to it by inspection or any other means it deems necessary. the following which 49.11shall be accompanied by an affidavit attesting to its accuracy and truthfulness: 49.12    (1) articles of incorporation, constitution, bylaws, or other operating documents; 49.13    (2) a duly adopted statement of the school's mission and goals; 49.14    (3) evidence of current school or program licenses granted by departments or 49.15agencies of any state; 49.16    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate 49.17past fiscal year including any management letters provided by the independent auditor 49.18or, if the school is a public institution outside Minnesota, an income statement for the 49.19immediate past fiscal year; 49.20    (5) all current promotional and recruitment materials and advertisements; and49.21    (6) the current school catalog and, if not contained in the catalog: 49.22    (i) the members of the board of trustees or directors, if any; 49.23    (ii) the current institutional officers; 49.24    (iii) current full-time and part-time faculty with degrees held or applicable 49.25experience; 49.26    (iv) a description of all school facilities; 49.27    (v) a description of all current course offerings; 49.28    (vi) all requirements for satisfactory completion of courses, programs, and degrees; 49.29    (vii) the school's policy about freedom or limitation of expression and inquiry; 49.30    (viii) a current schedule of fees, charges for tuition, required supplies, student 49.31activities, housing, and all other standard charges; 49.32    (ix) the school's policy about refunds and adjustments; 49.33    (x) the school's policy about granting credit for prior education, training, and 49.34experience; and 50.1    (xi) the school's policies about student admission, evaluation, suspension, and 50.2dismissal. 50.3    Subd. 2. Financial records. The office shall not disclose financial records or 50.4accreditation reports provided to it by a school pursuant to this section except for the 50.5purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 50.6decision to approve or not to approve the granting of degrees or the use of a name by the 50.7school. Section 
         15.17, subdivision 4, shall not apply to such records. 50.8    Subd. 3.Additional information.If the office is unable to determine the nature 50.9and activities of a school on the basis of the information in subdivision 1, the office shall 50.10notify the school of additional information needed.50.11    Subd. 4.Verification of information.The office may verify the accuracy of 50.12submitted information by inspection, visitation, or any other means it considers necessary.50.13    Subd. 5.Public information.All information submitted to the office is public 50.14information except financial and accreditation records and information. The office may 50.15disclose financial records or information to defend its decision to approve or disapprove 50.16granting of degrees or the use of a name or its decisions to revoke the approval at a hearing 50.17under chapter 14 or other legal proceedings.50.18    Subd. 6.Late registration penalty.Applications for renewal for any registration 50.19received after the deadline date specified in the renewal materials provided by the office 50.20are subject to a late fee equal to 20 percent of the annual registration renewal fee.50.21    Subd. 7.Out-of-state expenses.A school shall reimburse the office for actual costs 50.22associated with a site evaluation visit outside Minnesota if the visit is necessary under 50.23section 136A.64, subdivision 1 or 3.50.24    Sec. 6. [136A.645] SCHOOL CLOSURE.50.25    (a) When a school decides to cease postsecondary education operations, or if its 50.26registration is refused, revoked, or suspended it must cooperate with the office in assisting 50.27students to find alternative means to complete their studies with a minimum of disruption, 50.28and inform the office of the following:50.29    (1) the planned date for termination of postsecondary education operations; 50.30    (2) the planned date for the transfer of the student records; 50.31    (3) confirmation of the name and address of the organization to receive and hold 50.32the student records; and 50.33    (4) the official at the organization receiving the student records who is designated to 50.34provide official copies of records or transcripts upon request. 51.1    (b) Upon notice from a school of its intention to cease operations, or if a school's 51.2registration is revoked, refused, or suspended, the office shall notify the school of the date 51.3on which it must cease the enrollment of students and all postsecondary educational 51.4operations.51.5    Sec. 7. [136A.646] ADDITIONAL SECURITY.51.6    In the event any registered institution is notified by the United States Department 51.7of Education that it has fallen below minimum financial standards and that its continued 51.8participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 51.9Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 51.10Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 51.11institution shall provide a surety bond conditioned upon the faithful performance of all 51.12contracts and agreements with students in a sum equal to the "letter of credit" required by 51.13the United States Department of Education in the Letter of Credit Alternative, but in no 51.14event shall such bond be less than $10,000 and not more than $250,000.51.15    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read:51.16136A.65 APPROVAL OF DEGREES AND NAME.51.17    Subdivision 1. Prohibition. No school subject to registration shall grant a degree 51.18unless such degree isand its underlying curriculum are approved by the office, nor 51.19shall any school subject to registration use the name "college," "academy," "institute" or 51.20"university" in its name without approval by the office.51.21    Subd. 1a.Accreditation; requirement.A school must not be registered or 51.22authorized to offer any degree at any level unless the school is accredited by an agency 51.23recognized by the United States Department of Education for purposes of eligibility to 51.24participate in Title IV federal financial aid programs. Any registered school undergoing 51.25institutional accreditation shall inform the office of site visits by the accrediting agency 51.26and provide office staff the opportunity to attend the visits, including any exit interviews. 51.27The institution must provide the office with a copy of the final report upon receipt.51.28    Subd. 2. Procedures. The office shall establish procedures for approval, including 51.29notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 51.30granted. If a hearing is requested, no disapproval shall take effect until after such hearing.51.31    Subd. 3. Application. A school subject to registration shall be granted approval to 51.32use the term "college," "academy," "institute" or "university" in its name whether or not it 51.33offers a program leading to a degree, if it was organized, operating and using such term in 52.1its name on or before August 1, 1975, and if it meets the other policies and standards for 52.2approval established by the office.52.3    Subd. 4.Criteria for approval.(a) A school applying to be registered and to have 52.4its degree or degrees and name approved must substantially meet the following criteria: 52.5    (1) the school has an organizational framework with administrative and teaching 52.6personnel to provide the educational programs offered;52.7    (2) the school has financial resources sufficient to meet the school's financial 52.8obligations, including refunding tuition and other charges consistent with its stated policy 52.9if the institution is dissolved, or if claims for refunds are made, to provide service to the 52.10students as promised, and to provide educational programs leading to degrees as offered;52.11    (3) the school operates in conformity with generally accepted budgeting and 52.12accounting procedures, such as the standards adopted by the National Association of 52.13College and University Business Officers, located at 1 Dupont Circle, Washington, D.C., 52.1420036;52.15    (4) the school provides an educational program leading to the degree it offers; 52.16    (5) the school provides appropriate and accessible library, laboratory, and other 52.17physical facilities to support the educational program offered;52.18    (6) the school has a policy on freedom or limitation of expression and inquiry for 52.19faculty and students which is published or available on request; 52.20    (7) the school uses only publications and advertisements which are truthful and do 52.21not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 52.22school, its personnel, programs, services, or occupational opportunities for its graduates 52.23for promotion and student recruitment;52.24    (8) the school's compensated recruiting agents who are operating in Minnesota 52.25identify themselves as agents of the school when talking to or corresponding with students 52.26and prospective students; and52.27    (9) the school provides information to students and prospective students concerning: 52.28    (i) comprehensive and accurate policies relating to student admission, evaluation, 52.29suspension, and dismissal; 52.30    (ii) clear and accurate policies relating to granting credit for prior education, training, 52.31and experience and for courses offered by the school; 52.32    (iii) current schedules of fees, charges for tuition, required supplies, student 52.33activities, housing, and all other standard charges; 52.34    (iv) policies regarding refunds and adjustments for withdrawal or modification 52.35of enrollment status; and 53.1    (v) procedures and standards used for selection of recipients and the terms of 53.2payment and repayment for any financial aid program.53.3    (b) An application for degree approval must also include: 53.4    (i) title of degree and formal recognition awarded; 53.5    (ii) location where such degree will be offered; 53.6    (iii) proposed implementation date of the degree; 53.7    (iv) admissions requirements for the degree; 53.8    (v) length of the degree; 53.9    (vi) projected enrollment for a period of five years; 53.10    (vii) the curriculum required for the degree, including course syllabi or outlines; 53.11    (viii) statement of academic and administrative mechanisms planned for monitoring 53.12the quality of the proposed degree; 53.13    (ix) statement of satisfaction of professional licensure criteria, if applicable; 53.14    (x) documentation of the availability of clinical, internship, externship, or practicum 53.15sites, if applicable; and 53.16    (xi) statement of how the degree fulfills the institution's mission and goals, 53.17complements existing degrees, and contributes to the school's viability.53.18    Subd. 5.Requirements for degree approval.For each degree a school offers to a 53.19student, where the student does not leave Minnesota for the major portion of the program 53.20or course leading to the degree, the school must have: 53.21    (1) qualified teaching personnel to provide the educational programs for each degree 53.22for which approval is sought; 53.23    (2) appropriate educational programs leading to each degree for which approval 53.24is sought; 53.25    (3) appropriate and accessible library, laboratory, and other physical facilities to 53.26support the educational program for each degree for which approval is sought; and 53.27    (4) a rationale showing that degree programs are consistent with the school's mission 53.28and goals.53.29    Subd. 6.Name.A school may use the term "academy" or "institute" in its name 53.30without meeting any additional requirements. A school may use the term "college" in its 53.31name if it offers at least one program leading to an associate degree. A school may use 53.32the term "university" in its name if it offers at least one program leading to a master's 53.33or doctorate degree.53.34    Subd. 7.Grandfathered names.Names used before August 1, 2007, by a school, 53.35organized, operating, and using the term "academy," "institute," "college," or "university" 54.1in its name on or before August 1, 2007, may continue using such term whether or not it 54.2offers a program leading to a degree.54.3    Subd. 8.Conditional approval.The office may grant conditional approval for a 54.4degree or use of a term in its name for a period of less than one year if doing so would be 54.5in the best interests of currently enrolled students or prospective students.54.6    Subd. 9.Disapproval of registration appeal.If a school's degree or use of a term 54.7in its name is disapproved by the office, the school may request a hearing under chapter 54.814. The request must be in writing and made to the office within 30 days of the date 54.9the school is notified of the disapproval. 54.10    (a) The office may refuse to renew, revoke, or suspend registration, approval of 54.11a school's degree, or use of a regulated term in its name by giving written notice and 54.12reasons to the school. The school may request a hearing under chapter 14. If a hearing is 54.13requested, no revocation or suspension shall take effect until after the hearing. 54.14    (b) Reasons for revocation or suspension of registration or approval may be for one 54.15or more of the following reasons: 54.16    (1) violating the provisions of sections 136A.615 to 136A.71; 54.17    (2) providing false, misleading, or incomplete information to the office; 54.18    (3) presenting information about the school which is false, fraudulent, misleading, 54.19deceptive, or inaccurate in a material respect to prospective students; or 54.20    (4) refusing to allow reasonable inspection or to supply reasonable information after 54.21a written request by the office has been received.54.22    Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read:54.23136A.653 EXEMPTIONS.54.24    Subdivision 1. Exemption. A school that is subject to licensing by the office under 54.25chapter 141, is exempt from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 54.26The determination of the office as to whether a particular school is subject to regulation 54.27under chapter 141 is final for the purposes of this exemption. 54.28    Subd. 2. Educational program; nonprofit organizations. Educational programs 54.29which are sponsored by a bona fide and nonprofit trade, labor, business, professional 54.30or fraternal organization, which programs are conducted solely for that organization's 54.31membership or for the members of the particular industries or professions served by that 54.32organization, and which are not available to the public on a fee basis, are exempted from 54.33the provisions of sections 
         136A.61136A.615 to 
         136A.71. 54.34    Subd. 3. Educational program; business firms. Educational programs which are 54.35sponsored by a business firm for the training of its employees or the employees of other 55.1business firms with which it has contracted to provide educational services at no cost to the 55.2employees are exempted from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 55.3    Subd. 4. Voluntary submission. Any school or program exempted from the 55.4provisions of sections 
         136A.61136A.615 to 
         136A.71 by the provisions of this section 55.5may voluntarily submit to the provisions of those sections. 55.6    Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read:55.7136A.657 EXEMPTION; RELIGIOUS SCHOOLS.55.8    Subdivision 1. Exemption. Any school or any department or branch of a school (a) 55.9which is substantially owned, operated or supported by a bona fide church or religious 55.10organization; (b) whose programs are primarily designed for, aimed at and attended by 55.11persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 55.12church or religious organization; and (c) whose programs are primarily intended to prepare 55.13its students to become ministers of, to enter into some other vocation closely related to, or 55.14to conduct their lives in consonance with, the particular faith of that church or religious 55.15organization, is exempt from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 55.16    Subd. 2. Limitation. This exemption shall not extend to any school or to any 55.17department or branch of a school which through advertisements or solicitations represents 55.18to any students or prospective students that the school, its aims, goals, missions or 55.19purposes or its programs are different from those described in subdivision 1. This 55.20exemption shall not extend to any school which represents to any student or prospective 55.21student that the major purpose of its programs is to prepare the student for a vocation not 55.22closely related to that particular religious faith, or to provide the student with a general 55.23educational program recognized by other schools or the broader educational, business or 55.24social community as being substantially equivalent to the educational programs offered 55.25by schools or departments or branches of schools which are not exempt from sections 55.26136A.61136A.615 to 
         136A.71, and rules adopted pursuant thereto. 55.27    Subd. 3. Scope. Nothing in sections 
         136A.61136A.615 to 
         136A.71, or the rules 55.28adopted pursuant thereto, shall be interpreted as permitting the office to determine the 55.29truth or falsity of any particular set of religious beliefs. 55.30    Subd. 4.Statement required; religious nature.Any degree awarded upon 55.31completion of a religiously exempt program shall include descriptive language to make 55.32the religious nature of the award clear.55.33    Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:55.34136A.66 LIST.56.1    The office shall maintain a list of schools registered institutions authorized to grant 56.2degrees and schools authorized to use the name "college," "academy," "institute" or 56.3"university," and shall make such list available to the public.56.4    Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:56.5136A.67 UNAUTHORIZED REPRESENTATIONS.56.6    No school and none of its officials or employees shall advertise or represent in any 56.7manner that such school is approved or accredited by the office or state of Minnesota 56.8except that any A school which is duly registered with the office, or any of its officials or 56.9employees, may represent in advertising and shall disclose in catalogues, applications, 56.10and enrollment materials that the school is registered with the office. by prominently 56.11displaying the following statement: "(Name of school) is registered as a private institution 56.12with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71. 56.13Registration is not an endorsement of the institution. Credits earned at the institution 56.14may not transfer to all other institutions."56.15    Sec. 13. [136A.675] RISK ANALYSIS.56.16    The office shall develop a set of financial and programmatic evaluation metrics to 56.17aid in the detection of the failure or potential failure of a school to meet the standards 56.18established under sections 136A.61 to 136A.71. These metrics shall include indicators 56.19of financial stability, changes in the senior management or the financial aid and senior 56.20administrative staff of an institution, changes in enrollment, changes in program offerings, 56.21and changes in faculty staffing patterns. The development of financial standards shall use 56.22industry standards as benchmarks. The development of the nonfinancial standards shall 56.23include a measure of trends and dramatic changes in trends or practice. The agency must 56.24specify the metrics and standards for each area and provide a copy to each registered 56.25institution and post them on the agency Web site. The agency shall use regularly reported 56.26data submitted to the federal government or other regulatory or accreditation agencies 56.27wherever possible. The agency may require more frequent data reporting by an institution 56.28to ascertain whether the standards are being met.56.29    Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read:56.30136A.68 RECORDS.56.31    After August 1, 1975, all schools located in this state must maintain permanent 56.32records of all students enrolled therein at any time. The office may require schools to 56.33provide a plan acceptable to the office for preserving all such records for at least ten years. 57.1The office may require that such plan include the filing of a continuous surety bond or a 57.2deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving 57.3records after such school ceases to exist. A registered school shall maintain a permanent 57.4record for each student for 50 years from the last date of the student's attendance. A 57.5registered school offering distance instruction to a student located in Minnesota shall 57.6maintain a permanent record for each Minnesota student for 50 years from the last date of 57.7the student's attendance. Records include a student's academic transcript, documents, and 57.8files containing student data about academic credits earned, courses completed, grades 57.9awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 57.10school shall submit a plan that meets the following requirements: 57.11    (1) at least one copy of the records must be held in a secure, fireproof depository 57.12or duplicate records must be maintained off site in a secure location and in a manner 57.13approved by the office; 57.14    (2) an appropriate official must be designated to provide a student with copies of 57.15records or a transcript upon request; 57.16    (3) an alternative method approved by the office of complying with clauses (1) and 57.17(2) must be established if the school ceases to exist; and 57.18    (4) if the school has no binding agreement approved by the office for preserving 57.19student records, a continuous surety bond must be filed with the office in an amount not to 57.20exceed $20,000. The bond shall run to the state of Minnesota.57.21    Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read:57.22136A.69 FEES.57.23    Subdivision 1.Registration fees. The office shall collect reasonable registration 57.24fees that are sufficient to recover, but do not exceed, its costs of administering the 57.25registration program. The office shall charge $1,100 for initial registration fees and $950 57.26for annual renewal fees.57.27    Subd. 2.Degree level addition fee.The office processing fee for adding a degree 57.28level to an existing program is $2,000 per program.57.29    Subd. 3.Program addition fee.The office processing fee for adding a program 57.30that represents a significant departure in the objectives, content, or method of delivery of 57.31programs that are currently offered by the school is $500 per program.57.32    Subd. 4.Visit or consulting fee.If the office determines that a fact-finding visit 57.33or outside consultant is necessary to review or evaluate any new or revised program, the 57.34office shall be reimbursed for the expenses incurred related to the review as follows: 58.1    (1) $300 for the team base fee or for a paper review conducted by a consultant if the 58.2office determines that a fact-finding visit is not required; 58.3    (2) $300 for each day or part thereof on site per team member; and 58.4    (3) the actual cost of customary meals, lodging, and related travel expenses incurred 58.5by team members.58.6    Subd. 5.Modification fee.The fee for modification of any existing program is 58.7$100 and is due if there is: 58.8    (1) an increase or decrease of 25 percent or more from the original date of program 58.9approval, in clock hours, credit hours, or calendar length of an existing program; 58.10    (2) a change in academic measurement from clock hours to credit hours or vice 58.11versa; or 58.12    (3) an addition or alteration of courses that represent a 25 percent change or more in 58.13the objectives, content, or methods of delivery.58.14    Sec. 16. [136A.705] PENALTY.58.15    The director may assess fines for violations of a provision of sections 136A.615 to 58.16136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71 58.17shall be a separate violation and fines shall not exceed $500 per day per violation. 58.18Amounts received under this section must be deposited in the special revenue fund and are 58.19appropriated for the purposes in sections 136A.615 to 136A.71.58.20    Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read:58.21136A.71 INJUNCTION.58.22    Upon application of the attorney general the district courts shall have jurisdiction to 58.23enjoin any violations of sections 
         136A.61136A.615 to 
         136A.71. 58.24    Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:58.25    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or 58.26"office" means the Minnesota Office of Higher Education.58.27    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:58.28    Subd. 5. School. "School" means any person, within or outside the state, who 58.29maintains, advertises, administers, solicits for, or conducts any program for profit at 58.30any less than an associate degree level other than baccalaureate or graduate programs, 58.31and is not specifically exempted by sections 141.21 toand is not registered as a private 59.1institution under sections 136A.615 to 136A.71 and is not specifically exempted by 59.2section 141.35 or 141.37. 59.3    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:59.4    Subdivision 1. Required. A school must not maintain, advertise, solicit for, 59.5administer, or conduct any program in Minnesota without first obtaining a license from 59.6the office.59.7    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:59.8    Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 59.9conducts, solicits for, or advertises within the state of Minnesota any program, unless the 59.10applicant files with the office a continuous corporate surety bond written by a company 59.11authorized to do business in Minnesota conditioned upon the faithful performance of all 59.12contracts and agreements with students made by the applicant.59.13    (b) The amount of the surety bond shall be ten percent of the preceding year's gross 59.14income from student tuition, fees, and other required institutional charges, but in no event 59.15less than $10,000 nor greater than $250,000, except that a school may deposit a greater 59.16amount at its own discretion. A school in each annual application for licensure must 59.17compute the amount of the surety bond and verify that the amount of the surety bond 59.18complies with this subdivision, unless the school maintains a surety bond equal to at least 59.19$250,000. A school that operates at two or more locations may combine gross income 59.20from student tuition, fees, and other required institutional charges for all locations for the 59.21purpose of determining the annual surety bond requirement. The gross tuition and fees 59.22used to determine the amount of the surety bond required for a school having a license for 59.23the sole purpose of recruiting students in Minnesota shall be only that paid to the school 59.24by the students recruited from Minnesota.59.25    (c) The bond shall run to the state of Minnesota and to any person who may have a 59.26cause of action against the applicant arising at any time after the bond is filed and before it 59.27is canceled for breach of any contract or agreement made by the applicant with any student. 59.28The aggregate liability of the surety for all breaches of the conditions of the bond shall not 59.29exceed the principal sum deposited by the school under paragraph (b). The surety of any 59.30bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 59.31of liability for any breach of condition occurring after the effective date of cancellation.59.32    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 59.33sum equal to the amount of the required surety bond in cash, or securities as may be 60.1legally purchased by savings banks or for trust funds in an aggregate market value equal 60.2to the amount of the required surety bond.60.3    (e) Failure of a school to post and maintain the required surety bond or deposit under 60.4paragraph (d) may shall result in denial, suspension, or revocation of the school's license.60.5    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:60.6    Subd. 7. Minimum standards. A license shall be issued if the office first 60.7determines:60.8    (1) that the applicant has a sound financial condition with sufficient resources 60.9available to:60.10    (i) meet the school's financial obligations;60.11    (ii) refund all tuition and other charges, within a reasonable period of time, in the 60.12event of dissolution of the school or in the event of any justifiable claims for refund against 60.13the school by the student body;60.14    (iii) provide adequate service to its students and prospective students; and60.15    (iv) maintain and support the school;60.16    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 60.17and the necessary number of work stations to prepare adequately the students currently 60.18enrolled, and those proposed to be enrolled;60.19    (3) that the applicant employs a sufficient number of qualified teaching personnel to 60.20provide the educational programs contemplated;60.21    (4) that the school has an organizational framework with administrative and 60.22instructional personnel to provide the programs and services it intends to offer;60.23    (5) that the premises and conditions under which the students work and study are 60.24sanitary, healthful, and safe, according to modern standards;60.25    (6) that the quality and content of each occupational course or program of study 60.26provides education and adequate preparation to enrolled students for entry level positions 60.27in the occupation for which prepared;60.28    (7) that the living quarters which are owned, maintained, recommended, or approved 60.29by the applicant for students are sanitary and safe;60.30    (8) that the contract or enrollment agreement used by the school complies with 60.31the provisions in section 
         141.265; 60.32    (9) that contracts and agreements do not contain a wage assignment provision or a 60.33confession of judgment clause; and61.1    (10) that there has been no adjudication of fraud or misrepresentation in any 61.2criminal, civil, or administrative proceeding in any jurisdiction against the school or its 61.3owner, officers, agents, or sponsoring organization.61.4    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:61.5    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 61.6a school, the school shall furnish to the office a catalog, brochure, or electronic display 61.7including:61.8    (1) identifying data, such as volume number and date of publication;61.9    (2) name and address of the school and its governing body and officials;61.10    (3) a calendar of the school showing legal holidays, beginning and ending dates of 61.11each course quarter, term, or semester, and other important dates;61.12    (4) the school policy and regulations on enrollment including dates and specific 61.13entrance requirements for each program;61.14    (5) the school policy and regulations about leave, absences, class cuts, make-up 61.15work, tardiness, and interruptions for unsatisfactory attendance;61.16    (6) the school policy and regulations about standards of progress for the student 61.17including the grading system of the school, the minimum grades considered satisfactory, 61.18conditions for interruption for unsatisfactory grades or progress, a description of any 61.19probationary period allowed by the school, and conditions of reentrance for those 61.20dismissed for unsatisfactory progress;61.21    (7) the school policy and regulations about student conduct and conditions for 61.22dismissal for unsatisfactory conduct;61.23    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 61.24activities, laboratory fees, service charges, rentals, deposits, and all other charges;61.25    (9) the school policy and regulations, including an explanation of section 
         141.271, 61.26about refunding tuition, fees, and other charges if the student does not enter the program, 61.27withdraws from the program, or the program is discontinued;61.28    (10) a description of the available facilities and equipment;61.29    (11) a course outline syllabus for each course offered showing course objectives, 61.30subjects or units in the course, type of work or skill to be learned, and approximate time, 61.31hours, or credits to be spent on each subject or unit;61.32    (12) the school policy and regulations about granting credit for previous education 61.33and preparation;61.34    (13) a notice to students relating to the transferability of any credits earned at the 61.35school to other institutions; 62.1    (14) a procedure for investigating and resolving student complaints; and62.2    (14) (15) the name and address of the Minnesota Office of Higher Education.62.3    A school that is exclusively a distance education school is exempt from clauses 62.4(3) and (5).62.5    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:62.6    Subd. 10. Placement records. (a) Before a license is issued reissued to a school 62.7that offers, advertises or implies a placement service, the school shall file with the office 62.8for the past year and thereafter at reasonable intervals determined by the office, a certified 62.9copy of the school's placement record, containing a list of graduates, a description of their 62.10jobs, names of their employers, and other information as the office may prescribe.62.11    (b) Each school that offers a placement service shall furnish to each prospective 62.12student, upon request, prior to enrollment, written information concerning the percentage 62.13of the previous year's graduates who were placed in the occupation for which prepared or 62.14in related employment.62.15    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:62.16    Subd. 12. Permanent records. A school licensed under this chapter and located 62.17in Minnesota shall maintain a permanent record for each student for 50 years from the 62.18last date of the student's attendance. A school licensed under this chapter and offering 62.19distance instruction to a student located in Minnesota shall maintain a permanent record 62.20for each Minnesota student for 50 years from the last date of the student's attendance. 62.21Records include school transcripts, documents, and files containing student data about 62.22academic credits earned, courses completed, grades awarded, degrees awarded, and 62.23periods of attendance. To preserve permanent records, a school shall submit a plan that 62.24meets the following requirements:62.25    (1) at least one copy of the records must be held in a secure, fireproof depository;62.26    (2) an appropriate official must be designated to provide a student with copies of 62.27records or a transcript upon request;62.28    (3) an alternative method, approved by the office, of complying with clauses (1) and 62.29(2) must be established if the school ceases to exist; and62.30    (4) a continuous surety bond must be filed with the office in an amount not to exceed 62.31$20,000 if the school has no binding agreement approved by the office, for preserving 62.32student records or a trust must be arranged if the school ceases to exist. The bond shall run 62.33to the state of Minnesota.63.1    Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:63.2    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 63.3renewal licensure application is:63.4    (1) for a category A school, as determined by the office, the fee is $865 if the school 63.5offers one program or $1,150 if the school offers two or more programs; and63.6    (2) for a category B or C school, as determined by the office, the fee is $430 if the 63.7school offers one program or $575 if the school offers two or more programs.63.8    (b) If a license renewal application is not received by the office by the close of 63.9business at least 60 days before the expiration of the current license, a late fee of $100 63.10per business day, not to exceed $3,000, shall be assessed.63.11    Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:63.12    Subd. 2. Contract information. A contract or enrollment agreement used by a 63.13school must include at least the following:63.14    (1) the name and address of the school, clearly stated;63.15    (2) a clear and conspicuous disclosure that the agreement is a legally binding 63.16instrument upon written acceptance of the student by the school unless canceled under 63.17section 
         141.271; 63.18    (3) the school's cancellation and refund policy that shall be clearly and conspicuously 63.19entitled "Buyer's Right to Cancel";63.20    (4) a clear statement of total cost of the program including tuition and all other 63.21charges;63.22    (5) the name and description of the program, including the number of hours or 63.23credits of classroom instruction, or distance instruction, that shall be included; and63.24    (6) a clear and conspicuous explanation of the form and means of notice the student 63.25should use in the event the student elects to cancel the contract or sale, the effective 63.26date of cancellation, and the name and address of the seller to which the notice should 63.27be sent or delivered.63.28The contract or enrollment agreement must not include a wage assignment provision or a 63.29confession of judgment clause.63.30    Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:63.31    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 63.32on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 63.33carried, it shall occur on the date the notice is delivered to the school. If a student has not 63.34attended classes class for a period of 21 consecutive days without contacting the school to 64.1indicate an intent to continue in school or otherwise making arrangements concerning the 64.2absence, the student is considered to have withdrawn from school for all purposes as of 64.3the student's last documented date of attendance.64.4    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:64.5    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 64.6promissory instrument received as payment of tuition or other charge prior to completion 64.7of 50 percent of the program., except that prior to that time, instruments may be transferred 64.8by assignment to purchasers who shall be subject to all defenses available against the 64.9school named as payee.64.10    Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:64.11    Subdivision 1. Not to advertise state approval Disclosure required.Schools, 64.12agents of schools, and solicitors may not advertise or represent in writing or orally that 64.13such school is approved or accredited by the state of Minnesota, except that any A64.14school, agent, or solicitor may advertiserepresent in advertisements and shall disclose 64.15in catalogues, applications, and enrollment materials that the school and solicitor have 64.16been is duly licensed by the state using by prominently displaying the following language64.17statement:64.18"(Name of school) is licensed as a private career school with the Minnesota Office of 64.19Higher Education. Licensure is not an endorsement of the institution. Credits earned at the 64.20institution may not transfer to all other institutions. The educational programs may not 64.21meet the needs of every student or employer."64.22    Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read:64.23141.32 PENALTY.64.24    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure 64.25to comply with this chapter shall be a separate violation. The office shall adopt rules 64.26establishing a list of civil penalties and the fine associated with each violation. Fines for 64.27violations shall not exceed $500 per day per violation. The director may assess fines for 64.28violations of a provision of this chapter. Each day's failure to comply with a provision 64.29of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed 64.30$500 per day per violation. Amounts received under this section must be deposited in the 64.31special revenue fund and are appropriated for the purposes of this chapter.65.1    Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read:65.2141.35 EXEMPTIONS.65.3    Sections 
         141.21 to 
         141.35 141.32 shall not apply to the following:65.4    (1) public postsecondary institutions;65.5    (2) private postsecondary institutions registered under sections 
         136A.61136A.615 65.6to 
         136A.71that are nonprofit, or that are for profit and registered under sections 136A.6165.7to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate 65.8or postbaccalaureate programs;65.9    (3) schools of nursing accredited by the state Board of Nursing or an equivalent 65.10public board of another state or foreign country;65.11    (4) private schools complying with the requirements of section 
         120A.22, subdivision 65.124
         ;65.13    (5) courses taught to students in a valid apprenticeship program taught by or 65.14required by a trade union;65.15    (6) schools exclusively engaged in training physically or mentally disabled persons 65.16for the state of Minnesota;65.17    (7) schools licensed by boards authorized under Minnesota law to issue licenses;65.18    (8) schools and educational programs, or training programs, contracted for by 65.19persons, firms, corporations, government agencies, or associations, for the training of their 65.20own employees, for which no fee is charged the employee;65.21    (9) schools engaged exclusively in the teaching of purely avocational, recreational, 65.22or remedial subjects as determined by the office;65.23    (10) driver training schools and instructors as defined in section 171.33, subdivisions 65.241 and 2;65.25    (11) classes, courses, or programs conducted by a bona fide trade, professional, or 65.26fraternal organization, solely for that organization's membership;65.27    (12) (11) programs in the fine arts provided by organizations exempt from taxation 65.28under section 
         290.05 and registered with the attorney general under chapter 309. For 65.29the purposes of this clause, "fine arts" means activities resulting in artistic creation or 65.30artistic performance of works of the imagination which are engaged in for the primary 65.31purpose of creative expression rather than commercial sale or employment. In making 65.32this determination the office may seek the advice and recommendation of the Minnesota 65.33Board of the Arts;65.34    (13) (12) classes, courses, or programs intended to fulfill the continuing education 65.35requirements for licensure or certification in a profession, that have been approved by 65.36a legislatively or judicially established board or agency responsible for regulating the 66.1practice of the profession, and that are offered exclusively to an individual practicing 66.2the profession;66.3    (14) (13) classes, courses, or programs intended to prepare students to sit for 66.4undergraduate, graduate, postgraduate, or occupational licensing and occupational 66.5entrance examinations;66.6    (15) (14) classes, courses, or programs providing 16 or fewer clock hours of 66.7instruction that are not part of the curriculum for an occupation or entry level employment;66.8    (16) (15) classes, courses, or programs providing instruction in personal 66.9development, modeling, or acting;66.10    (17) (16) training or instructional programs, in which one instructor teaches an 66.11individual student, that are not part of the curriculum for an occupation or are not intended 66.12to prepare a person for entry level employment; and66.13    (18) (17) schools with no physical presence in Minnesota, as determined by the 66.14office, engaged exclusively in offering distance instruction that are located in and 66.15regulated by other states or jurisdictions.66.16    Sec. 33. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.66.17    Subdivision 1.Exemption.Any school or any department or branch of a school: 66.18    (1) which is substantially owned, operated, or supported by a bona fide church 66.19or religious organization; 66.20    (2) whose programs are primarily designed for, aimed at, and attended by persons 66.21who sincerely hold or seek to learn the particular religious faith or beliefs of that church or 66.22religious organization; and 66.23    (3) whose programs are primarily intended to prepare its students to become 66.24ministers of, to enter into some other vocation closely related to, or to conduct their lives 66.25in consonance with the particular faith of that church or religious organization,66.26is exempt from the provisions of sections 141.21 to 141.32.66.27    Subd. 2.Limitations.(a) An exemption shall not extend to any school, department 66.28or branch of a school, or program of a school which through advertisements or solicitations 66.29represents to any students or prospective students that the school, its aims, goals, missions, 66.30purposes, or programs are different from those described in subdivision 1.66.31    (b) An exemption shall not extend to any school which represents to any student or 66.32prospective student that the major purpose of its programs is to:66.33    (1) prepare the student for a vocation not closely related to that particular religious 66.34faith; or67.1    (2) provide the student with a general educational program recognized by other 67.2schools or the broader educational, business, or social community as being substantially 67.3equivalent to the educational programs offered by schools or departments or branches of 67.4schools which are not religious in nature and are not exempt from chapter 141 and from 67.5rules adopted pursuant under this chapter.67.6    Subd. 3.Scope.Nothing in this chapter or the rules adopted under it shall be 67.7interpreted as permitting the office to determine the truth or falsity of any particular set 67.8of religious beliefs.67.9    Subd. 4.Descriptive language required.Any certificate, diploma, degree, or other 67.10formal recognition awarded upon completion of any religiously exempt program shall 67.11include such descriptive language as to make the religious nature of the award clear.67.12    Sec. 34. EFFECTIVE DATE; TRANSITION PROCESS.67.13    Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71, 67.14shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes, 67.15chapter 141, that qualify for private institution registration after July 1, 2007, shall apply 67.16for and complete the process for registration prior to the expiration of their current private 67.17career school license. Schools currently registered as private institutions pursuant to 67.18Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private 67.19career school license after August 1, 2007, shall apply for and complete the process for 67.20licensure prior to the expiration of the current registration, but in any event no later than 67.21December 31, 2007. The office is authorized to extend existing license or registration for a 67.22reasonable period of time to allow for the completion of the new processes when necessary.67.23ARTICLE 667.24JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

67.25Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.

67.26    The amounts shown in this section summarize direct appropriations, by fund, made 67.27in this article.

67.2820082009Total67.29General$ 94,246,000$ 59,895,000$154,141,00067.30Workforce Development14,935,00014,951,00029,886,00067.31Remediation700,000700,0001,400,00067.3267.33State Government Special Revenue1,877,0001,925,0003,802,00067.34Workers' Compensation  23,379,000 23,763,00047,142,00067.35Total$ 135,137,000$ 101,234,000$236,371,000

68.1Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

68.2    The sums shown in the columns marked "Appropriations" are appropriated to the 68.3agencies and for the purposes specified in this article. The appropriations are from the 68.4general fund, or another named fund, and are available for the fiscal years indicated 68.5for each purpose. The figures "2008" and "2009" used in this article mean that the 68.6appropriations listed under them are available for the fiscal year ending June 30, 2008, or 68.7June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 68.8year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 68.9year ending June 30, 2007, are effective the day following final enactment.

68.10APPROPRIATIONS68.11Available for the Year68.12Ending June 3068.1320082009

68.1468.15Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

68.16Subdivision 1.Total Appropriation$100,573,000$65,825,000

68.17Appropriations by Fund68.182008200968.19General85,703,00050,955,00068.20Remediation700,000700,00068.2168.22Workforce Development14,170,00014,170,000

68.23The amounts that may be spent for each 68.24purpose are specified in the following 68.25subdivisions.

68.2668.27Subd. 2.Business and Community Development48,679,00014,183,000

68.28Appropriations by Fund68.29General47,979,00013,483,00068.30Remediation700,000700,000

68.31(a)(1) $1,100,000 is for a grant under 68.32Minnesota Statutes, section 116J.421, 68.33to the Rural Policy and Development 68.34Center at St. Peter, Minnesota. The grant 68.35shall be used for research and policy 68.36analysis on emerging economic and social 69.1issues in rural Minnesota, to serve as a 69.2policy resource center for rural Minnesota 69.3communities, to encourage collaboration 69.4across higher education institutions, to 69.5provide interdisciplinary team approaches 69.6to research and problem-solving in rural 69.7communities, and to administer overall 69.8operations of the center. 69.9(2) The grant shall be provided upon the 69.10condition that each state-appropriated 69.11dollar be matched with a nonstate dollar. 69.12Acceptable matching funds are nonstate 69.13contributions that the center has received and 69.14have not been used to match previous state 69.15grants. Any funds not spent the first year are 69.16available the second year. 69.17(b) $200,000 each year is for a grant to 69.18WomenVenture for women's business 69.19development programs.69.20(c) $500,000 the first year is for a grant to 69.21University Enterprise Laboratories (UEL) 69.22for its direct and indirect expenses to support 69.23efforts to encourage the growth of early-stage 69.24and emerging bioscience companies. UEL 69.25must provide a report by June 30 each year 69.26to the commissioner on the expenditures 69.27until the appropriation is expended. This is a 69.28onetime appropriation and is available until 69.29expended.69.30(d) $2,000,000 the first year is for grants 69.31under Minnesota Statutes, section 116J.571, 69.32for the redevelopment grant program. This is 69.33a onetime appropriation.69.34(e) $100,000 each year is to the Public 69.35Facilities Authority for the small community 70.1wastewater treatment program under 70.2Minnesota Statutes, chapter 446A.70.3(f) $510,000 the first year is for the urban 70.4initiative program under Minnesota Statutes, 70.5chapter 116M, of which, $255,000 is for 70.6a grant to the Metropolitan Economic 70.7Development Association for continuing 70.8minority business development programs 70.9in the metropolitan area. This is a onetime 70.10appropriation.70.11(g) $85,000 each year is for a grant to the 70.12Minnesota Inventors Congress, of which 70.13$10,000 must be used for youth inventors.70.14(h) $151,000 the first year is for a grant to the 70.15city of Faribault to design, construct, furnish, 70.16and equip renovations to accommodate 70.17handicapped accessibility at the Paradise 70.18Center for the Arts.70.19(i) $3,000,000 the first year is for loans 70.20authorized under Minnesota Statutes, section 70.21116J.417. This appropriation is available 70.22until expended.70.23(j) $1,000,000 each year is to Minnesota 70.24Technology, Inc. for the small business 70.25growth acceleration program established 70.26under Minnesota Statutes, section 116O.115. 70.27This is a onetime appropriation.70.28(k) $350,000 the first year is for a grant to 70.29the city of Northome for the construction 70.30of a new municipal building to replace the 70.31structures damaged by fire on July 22, 2006. 70.32This appropriation is available when the 70.33commissioner determines that a sufficient 70.34match is available from nonstate sources to 70.35complete the project.71.1(l) $325,000 each year is for a technology 71.2and commercialization unit established 71.3under article 7, section 32. This is a onetime 71.4appropriation.71.5(m) $500,000 in the first year is for a 71.6grant to the city of Worthington for an 71.7agricultural-based bioscience training and 71.8testing center. Funds appropriated under this 71.9section must be used to provide a training 71.10and testing facility for incubator firms 71.11developing new agricultural processes and 71.12products. This is a onetime appropriation 71.13and is available until expended.71.14(n) $2,200,000 in the first year is for a grant 71.15to BioBusiness Alliance of Minnesota for 71.16bioscience business development programs 71.17to promote and position the state as a global 71.18leader in bioscience business activities. 71.19These funds may be used for:71.20(1) completion and periodic updating of 71.21a statewide bioscience business industry 71.22assessment of business technology 71.23enterprises and Minnesota's competitive 71.24position employing annual updates to federal 71.25industry classification data;71.26(2) long-term strategic planning that includes 71.27projections of market changes resulting 71.28from developments in biotechnology and the 71.29development of 20-year goals, strategies, and 71.30identified objectives for renewable energy, 71.31medical devices, biopharma, and biologics 71.32business development in Minnesota;71.33(3) the design and construction of a 71.34Minnesota focused bioscience business 71.35model to test competing strategies and 72.1scenarios, evaluate options, and forecast 72.2outcomes; and72.3(4) creation of a bioscience business 72.4resources network that includes development 72.5of a statewide bioscience business economic 72.6development framework to encourage 72.7bioscience business development and 72.8encourage spin-off activities, attract 72.9bioscience business location or expansion in 72.10Minnesota, and establish a local capability to 72.11support strategic system level planning for 72.12industry, government, and academia.72.13This appropriation is available until June 30, 72.142009.72.15(o) $325,000 is for a grant to the Walker 72.16Area Community Center, Inc., to construct, 72.17furnish, and equip the Walker Area 72.18Community Center. This appropriation is 72.19not available until the commissioner has 72.20determined that an amount sufficient to 72.21complete the project has been committed 72.22from nonstate sources.72.23(p) $120,000 the first year is for a grant 72.24to the Pine Island Economic Development 72.25Authority for predesign to upgrade and 72.26extend utilities to serve Elk Run Bioscience 72.27Research Park and The Falls - Healthy 72.28Living By Nature, an integrated medicine 72.29facility. This is a onetime appropriation and 72.30is available until expended.72.31(q) $300,000 the first year is for a grant 72.32to Thomson Township for infrastructure 72.33improvements for the industrial park. This is 72.34a onetime appropriation.73.1(r) $75,000 the first year for a grant to 73.2Le Sueur County for the cost of cleaning 73.3debris from lakes in Le Sueur County, 73.4caused by the August 24, 2006, tornado in 73.5southern Le Sueur County. This is a onetime 73.6appropriation.73.7(s) $3,000,000 the second year is for 73.8bioscience business development and 73.9commercialization grants. The commissioner 73.10shall designate an evaluation team to accept 73.11grant applications, review and evaluate 73.12grant proposals, and select up to five grant 73.13proposals to receive funding each year. 73.14The evaluation team shall be comprised 73.15of not more than 12 members including: 73.16the commissioner or the commissioner's 73.17designee; representatives of bioscience 73.18businesses; public and private institutions 73.19of higher education; private investment 73.20companies; a nonprofit entity that qualifies as 73.21a 501(c)6 under the Internal Revenue Code 73.22and is a trade association representing the 73.23life sciences industry; and a bio business 73.24alliance that qualifies as a 501(c)3 under the 73.25Internal Revenue Code. The criteria used 73.26by the evaluation team in evaluating grant 73.27proposals must include, but is not limited 73.28to: the potential to create and sustain jobs 73.29within the state of Minnesota; the potential 73.30for long-term business activity, growth, 73.31and expansion in Minnesota; the level of 73.32technological maturity; the potential to attract 73.33private investment; and the availability and 73.34readiness of markets. The commissioner 73.35must report to the standing committees of 73.36the house of representatives and the senate 74.1having jurisdiction over bioscience and 74.2technology issues by February 1 each year 74.3on the number, type, and amounts of grants 74.4awarded and the activities of the grant 74.5recipients. This is a onetime appropriation 74.6and is available until expended.74.7(t) $1,500,000 the first year is for the urban 74.8challenge grant program under Minnesota 74.9Statutes, section 116M.18, of which 74.10$1,000,000 is for a grant to the Neighborhood 74.11Development Center for assistance necessary 74.12to retain minority business enterprises 74.13at the Global Market. This is a onetime 74.14appropriation.74.15(u) $375,000 each year is to develop and 74.16operate a bioscience business marketing 74.17program to market Minneota bioscience 74.18businesses and business opportunities 74.19to other states and other countries. The 74.20bioscience business marketing program must 74.21emphasize bioscience business location and 74.22expansion opportunities in communities 74.23outside of the seven-county metropolitan 74.24area as defined in Minnesota Statutes, 74.25section 473.121, subdivision 2, that have 74.26established collaborative plans among two 74.27or more municipal units for bioscience 74.28business activities, and that are within 15 74.29miles of a four-year, baccalaureate degree 74.30granting institution or a two-year technical 74.31or community college that offers bioscience 74.32curricula. The commissioner must report 74.33to the committees of the senate and house 74.34of representatives having jurisdiction 74.35over bioscience and technology issues by 74.36February 1 of each year on the expenditures 75.1of these funds and the promotional activities 75.2undertaken to market the Minnesota 75.3bioscience industry to persons outside of the 75.4state. This is a onetime appropriation and is 75.5available until expended.75.6(v) $225,000 each year is for the purposes 75.7of the nanotechnology development fund 75.8(NDF) established in section 12, for grants 75.9to promote increased use of advanced 75.10instrumentation for nanomaterials analysis, 75.11to be awarded on a one-to-one matching basis 75.12to qualifying Minnesota small businesses. 75.13This is a onetime appropriation.75.14(w) $50,000 the first year is for a contract 75.15with a public higher education institution 75.16in Minnesota jointly entered into with the 75.17Center for Rural Development to study the 75.18needs of the renewable energy economy for 75.19trained employees and the training required 75.20for those employees. The study must include 75.21extensive consultation and involvement of 75.22representatives of the renewable energy 75.23industry, environmental interests, labor, the 75.24University of Minnesota, and the Minnesota 75.25State Colleges and Universities. The 75.26commissioner shall report the results of the 75.27study to the chairs of the finance divisions 75.28of the legislature with jurisdiction over 75.29economic development, energy, and higher 75.30education by November 1, 2007. This is a 75.31onetime appropriation.75.32(x) $25,000,000 is for the Minnesota 75.33minerals 21st century fund created in 75.34Minnesota Statutes, section 116J.423, 75.35to restore the money unallotted by the 76.1commissioner of finance in 2003 pursuant 76.2to Minnesota Statutes, section 16A.152. 76.3This appropriation may be used as provided 76.4in Minnesota Statutes, section 116J.423, 76.5subdivision 2. This appropriation is available 76.6until expended.76.7(y) $900,000 each year is for a grant to the 76.8city of St. Paul to be used to pay debt service 76.9on bond obligations issued by the city of St. 76.10Paul in 1996 for the convention center.76.11(z) $189,000 each year is appropriated from 76.12the general fund to the commissioner of 76.13employment and economic development for 76.14grants of $63,000 to eligible organizations 76.15each year and for the purposes of this 76.16paragraph. Each state grant dollar must be 76.17matched with $1 of nonstate funds. Any 76.18balance in the first year does not cancel but is 76.19available in the second year.76.20The commissioner of employment and 76.21economic development must make grants to 76.22organizations to assist in the development 76.23of entrepreneurs and small businesses. 76.24Three grants must be awarded to continue 76.25or to develop a program. One grant must 76.26be awarded to the Riverbend Center for 76.27Entrepreneurial Facilitation in Blue Earth 76.28County, and two to other organizations 76.29serving Faribault and Martin Counties. Grant 76.30recipients must report to the commissioner 76.31by February 1 of each year that the 76.32organization receives a grant with the 76.33number of customers served; the number of 76.34businesses started, stabilized, or expanded; 76.35the number of jobs created and retained; and 77.1business success rates. The commissioner 77.2must report to the house of representatives 77.3and senate committees with jurisdiction 77.4over economic development finance on the 77.5effectiveness of these programs for assisting 77.6in the development of entrepreneurs and 77.7small businesses.

77.8Subd. 3.Workforce Development48,896,00048,622,000

77.9Appropriations by Fund77.10General34,726,00034,452,00077.1177.12Workforce Development14,170,00014,170,000

77.13(a) $6,785,000 each year is for the Minnesota 77.14job skills partnership program under 77.15Minnesota Statutes, sections 116L.01 to 77.16116L.17. If the appropriation for either 77.17year is insufficient, the appropriation for the 77.18other year is available. This appropriation is 77.19available until spent.77.20(b) $305,000 each year is for a grant under 77.21Minnesota Statutes, section 116J.8747, to 77.22Twin Cities RISE! to provide training to 77.23hard-to-train individuals. 77.24(c) $1,125,000 each year is from 77.25the workforce development fund for 77.26Opportunities Industrialization Center 77.27programs. 77.28(d) $5,864,000 each year is from the general 77.29fund and $6,920,000 each year is from the 77.30workforce development fund for extended 77.31employment services for persons with 77.32severe disabilities or related conditions 77.33under Minnesota Statutes, section 268A.15. 77.34Of this, $250,000 is to supplement funds 77.35paid for wage incentive for the community 78.1support fund established in Minnesota Rules, 78.2part 3300.2045.78.3(e) $1,900,000 each year is for grants for 78.4programs that provide employment support 78.5services to persons with mental illness under 78.6Minnesota Statutes, sections 268A.13 and 78.7268A.14. Up to $77,000 each year may be 78.8used for administrative and salary expenses.78.9(f) $2,190,000 each year is for grants under 78.10Minnesota Statutes, section 268A.11, for the 78.11eight centers for independent living. Money 78.12not expended the first year is available the 78.13second year.78.14(g) $5,940,000 each year is for State Services 78.15for the Blind activities.78.16(h) $150,000 each year is from the general 78.17fund and $175,000 each year is from the 78.18workforce development fund for grants under 78.19Minnesota Statutes, section 268A.03, to Rise, 78.20Inc. for the Minnesota Employment Center 78.21for People Who are Deaf or Hard-of-Hearing. 78.22Money not expended the first year is 78.23available the second year.78.24(i) $9,021,000 each year is for the vocational 78.25rehabilitation program. At least $325,000 78.26each year must be used for interpreters for 78.27a regional transition program specializing 78.28in culturally appropriate transition 78.29services leading to employment for deaf, 78.30hard-of-hearing, and deaf-blind students.78.31(j) $150,000 each year is for a grant to 78.32Advocating Change Together for training, 78.33technical assistance, and resource materials 78.34to persons with developmental and mental 78.35illness disabilities.79.1(k) $250,000 each year for a grant to 79.2Lifetrack Resources for its immigrant/refugee 79.3collaborative programs, including those 79.4related to job-seeking skills and workplace 79.5orientation, intensive job development, 79.6functional work English, and on-site job 79.7coaching.79.8(l) $1,075,000 each year is for the youthbuild 79.9program under Minnesota Statutes, sections 79.10116L.361 to 116L.366.79.11(m) $1,350,000 each year is from the 79.12workforce development fund for grants 79.13to fund summer youth employment in 79.14Minneapolis. The grants shall be used to 79.15fund up to 500 jobs for youth each summer. 79.16Of this appropriation, $350,000 each year is 79.17for a grant to the learn-to-earn summer youth 79.18employment program. The commissioner 79.19shall establish criteria for awarding the 79.20grants. This appropriation is available in 79.21either year of the biennium and is available 79.22until spent.79.23(n) $50,000 each year is for a grant 79.24to Northern Connections in Perham to 79.25implement and operate a pilot workforce 79.26program that provides one-stop supportive 79.27services to assist individuals as they transition 79.28into the workforce. This appropriation is 79.29available to the extent it is matched by $1 of 79.30nonstate money for each $1 of state money.79.31(o) $100,000 each year is for a grant to 79.32Ramsey County Workforce Investment Board 79.33for the development of the building lives 79.34program. This is a onetime appropriation.80.1(p) $300,000 each year is for a grant to the 80.2Hennepin-Carver Workforce Investment 80.3Board (WIB) to coordinate with the Partners 80.4for Progress Regional Skills Consortium 80.5to provide employment and training as 80.6demonstrated by the Twin Cities regional 80.7health care training partnership project.80.8(q) $160,000 the first year is for a grant 80.9to Workforce Development, Inc., for a 80.10pilot project to provide demand-driven 80.11employment and training services to 80.12welfare recipients and other economically 80.13disadvantaged populations in Mower, 80.14Freeborn, Dodge, and Steele Counties. This 80.15is a onetime appropriation.80.16(r) $200,000 each year is for a grant to 80.17HIRED to operate its industry sector training 80.18initiatives, which provide employee training 80.19developed in collaboration with employers in 80.20specific, high-demand industries. This is a 80.21onetime appropriation.80.22(s) $200,000 the first year is for a grant 80.23to a nonprofit organization. The nonprofit 80.24organization must work on behalf of all 80.25licensed vendors to coordinate their efforts 80.26to respond to solicitations or other requests 80.27from private and governmental units as 80.28defined in Minnesota Statutes, section 80.29471.59, subdivision 1, in order to increase 80.30employment opportunities for persons with 80.31disabilities.80.32(t) $3,500,000 each year from the workforce 80.33development fund is for the Minnesota youth 80.34program under Minnesota Statutes, section 80.35116L.56 and 116L.561.81.1(u) $500,000 each year from the workforce 81.2development fund is for a grant to the 81.3Minnesota Alliance of Boys and Girls 81.4Clubs to administer a statewide project 81.5of youth job skills development. This 81.6project, which may have career guidance 81.7components, including health and life skills, 81.8is to encourage, train, and assist youth in 81.9job-seeking skills, workplace orientation, 81.10and job site knowledge through coaching. 81.11This grant requires a 25 percent match from 81.12nonstate resources.81.13(v) $350,000 in each year from the workforce 81.14development fund is for a grant to Ramsey 81.15County for a summer youth employment 81.16program to place at-risk youth, ages 14 to 21, 81.17in subsidized summer employment.81.18The commissioner must provide funding 81.19for the Minnesota Conservation Corps to 81.20provide learning stipends for deaf students 81.21and wages for interpreters participating in 81.22the MCC summer youth program.

81.23Subd. 4.State-Funded Administration2,998,0003,020,000

81.24The first $1,450,000 deposited in each 81.25year of the biennium and in each year of 81.26subsequent bienniums into the contingent 81.27account created under Minnesota Statutes, 81.28section 268.196, subdivision 3, shall be 81.29transferred by June 30 of each fiscal year 81.30to the workforce development fund created 81.31under Minnesota Statutes, section 116L.20. 81.32Deposits in excess of $1,450,000 shall be 81.33transferred by June 30 of each fiscal year to 81.34the general fund.

82.182.2Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY

82.3Subdivision 1.Total Appropriation$ 29,002,000$29,794,000

82.4Appropriations by Fund82.52008200982.6General 4,644,0005,035,00082.782.8Workers' Compensation21,716,00022,053,00082.982.10Workforce Development765,000781,00082.1182.12State Government Special Revenue1,877,0001,925,000

82.13The amounts that may be spent for each 82.14purpose are specified in the following 82.15subdivisions.

82.16Subd. 2.Workers' Compensation10,381,00010,659,000

82.17This appropriation is from the workers' 82.18compensation fund.82.19$200,000 each year is for grants to the 82.20Vinland Center for rehabilitation services.

82.21Subd. 3.Safety Codes and Services9,949,00010,134,000

82.22$5,292,000 the first year and $5,388,000 82.23the second year are from the workers' 82.24compensation fund. $1,877,000 the first year 82.25and $1,925,000 the second year are from the 82.26state government special revenue fund.82.27$1,000,000 each year is from the workers' 82.28compensation fund for patient safe handling 82.29grants under Minnesota Statutes, section 82.30182.6553.82.31$100,000 each year is from the workers' 82.32compensation fund for the operation of 82.33the meatpacking industry workers' rights 82.34ombudsman under Minnesota Statutes, 82.35section 179.87.

83.1Subd. 4.Labor Standards/Apprenticeship 2,629,0002,995,000

83.2Appropriations by Fund83.3General 1,864,0002,214,00083.483.5Workforce Development765,000781,000

83.6The appropriation from the workforce 83.7development fund is for the apprenticeship 83.8program under Minnesota Statutes, chapter 83.9178, and includes $100,000 each year for 83.10labor education and advancement program 83.11grants.83.12$360,000 the first year and $300,000 the 83.13second year from the general fund are for 83.14prevailing wage enforcement of which 83.15$60,000 in the first year is for outreach and 83.16survey participation improvements.

83.17Subd. 5.General Support6,043,0006,006,000

83.18This appropriation is from the workers' 83.19compensation fund.

83.2083.21Sec. 5. BUREAU OF MEDIATION SERVICES

83.22Subdivision 1.Total Appropriation$1,850,000$1,877,000

83.23The amounts that may be spent for each 83.24purpose are specified in the following 83.25subdivisions.

83.26Subd. 2.Mediation Services1,700,0001,727,000

83.2783.28Subd. 3.Labor Management Cooperation Grants150,000150,000

83.29$150,000 each year is for grants to area labor 83.30management committees. Grants may be 83.31awarded for a 12-month period beginning 83.32July 1 each year. Any unencumbered balance 83.33remaining at the end of the first year does not 83.34cancel but is available for the second year.

84.184.2Sec. 6. WORKERS' COMPENSATION COURT OF APPEALS$1,663,000$1,710,000

84.3This appropriation is from the workers' 84.4compensation fund. 

84.5Sec. 7. BOARD OF ACCOUNTANCY$493,000$499,000

84.684.784.884.9Sec. 8. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN$795,000$805,000

84.10Sec. 9. BOARD OF BARBER EXAMINERS$711,000$724,000

84.1184.12Sec. 10. MINNESOTA BOXING COMMISSION$50,000$-0-

84.13To transition the commission to being a 84.14self-funded entity.84.15    Sec. 11. BIOSCIENCE ZONES DESIGNATION.84.16    The commissioner of employment and economic development must establish a 84.17criteria for expanding the zones. The criteria must limit designating a new zone to a 84.18community that has adequate resources and infrastructure to support bioindustry, including 84.19postsecondary institutions, strong health care systems, and existing bioscience companies. 84.20It must also require that a new zone be located on a transportation corridor.84.21    Sec. 12. NANOTECHNOLOGY DEVELOPMENT FUND.84.22    Subdivision 1.Nanotechnology development fund created.The nanotechnology 84.23development fund (NDF) is created in the state treasury. Money in the fund is appropriated 84.24to the commissioner of employment and economic development for the purposes of this 84.25section.84.26    Subd. 2.Program established; purpose.The nanotechnology development 84.27fund program is established to develop a collaborative economic development initiative 84.28between the state of Minnesota, the private sector, and multiple academic institutions 84.29to promote by small businesses an increased use of advanced nanoinstrumentation for 84.30characterization, fabrication, and other related processes; provide research consulting 84.31by knowledgeable specialists; and provide student internship opportunities to increase 84.32nanotechnology experience by working with small, medium, or large Minnesota 85.1companies. The NDF program shall be administered by the Department of Employment 85.2and Economic Development and is not a state agency. 85.3    Subd. 3.Definition; qualifying Minnesota small business."Qualifying Minnesota 85.4small business" means:85.5    (1) a Minnesota small business corporation, sole proprietorship, or partnership that 85.6has fewer than 50 employees; or 85.7    (2) a Minnesota business corporation, sole proprietorship, or partnership that:85.8    (i) has 51 to 100 employees; and85.9    (ii) demonstrates current financial adversity or risk or a major prospect of aiding 85.10the business's long-term outlook by significant use of nanotechnology in the business's 85.11offerings.85.12    Subd. 4.Use of fund; grants.The commissioner shall extend onetime matching 85.13grants from the NDF to qualifying Minnesota small businesses located throughout the 85.14state to:85.15    (1) add nanotechnology applications to products that are being developed by 85.16Minnesota small businesses to enhance distinctiveness;85.17    (2) promote the depth, breadth, and value of technologies being developed by 85.18Minnesota businesses with the aid of nanotechnology;85.19    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product 85.20time-to-market, with higher incidence of distinct product characteristics;85.21    (4) provide Minnesota small businesses with broader access to experienced research 85.22consultants; and85.23    (5) increase the number of researchers experienced in working with 85.24nanoinstrumentation.85.25    Subd. 5.Grant application and award procedure.(a) The commissioner may 85.26give priority to applicants:85.27    (1) whose intellectual property would benefit from utilization of nanoinstrumentation 85.28not possessed in-house;85.29    (2) who are currently utilizing nanoinstrumentation either at the University of 85.30Minnesota or a private sector location on a leased, hourly basis; and85.31    (3) who wish to increase their access to experienced research consultants.85.32    (b) The commissioner shall decide whether to award a grant to an eligible applicant 85.33based on:85.34    (1) the applicant's planned frequency of usage of nanoinstrumentation for 85.35characterization, fabrication, and other related processes; and86.1    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form 86.2of a signed affidavit from a certified facility to confirm the one-to-one private sector 86.3investment has been met.86.4    (c) A grant made under this section must:86.5    (1) include verification of matching rental fees or internship stipends paid by the 86.6grantee; and86.7    (2) be for a total amount paid to each grantee of not less than $500 nor more than 86.8$20,000 within the biennium.86.9    Subd. 6.Administration.The commissioner of employment and economic 86.10development must develop and maintain a record-keeping system that specifies how 86.11funds from the NDF are applied for and distributed. Businesses receiving grants 86.12from the NDF must provide contact information, the date and time of the use of the 86.13nanoinstrumentation, proof of their matching contribution to meet the rental costs or 86.14provide an internship's stipend, and a general statement of the expected outcome from 86.15the use of the nanoinstrumentation, to the extent documentation can be made without 86.16divulging proprietary information.86.17    Subd. 7.Gifts and donations.Gifts and donations, including land or interests 86.18in land, may be made to NDF. Noncash gifts and donations must be disposed of for 86.19cash as soon as the commissioner of employment and economic development can 86.20prudently maximize the value of the gift or donation. All funds must be credited to the 86.21nanotechnology development fund. All interest earned by the fund must be credited to 86.22the NDF.86.23    Subd. 8.Report to legislature.By June 30 of each odd-numbered year, the 86.24commissioner of employment and economic development must submit a report to the 86.25legislature with statistics about the use of the NDF.86.26ARTICLE 786.27EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS86.28    Section 1. Minnesota Statutes 2006, section 116J.401, is amended by adding a 86.29subdivision to read:86.30    Subd. 4.Use of funds for unemployed worker assistance.Payment of employee 86.31compensation costs from the Wagner-Peyser Act referenced in subdivision 1, clause 86.32(8), must be used to provide direct benefit to unemployed and underemployed workers 86.33through the state's workforce centers. At least 75 percent of the employee compensation 86.34paid from Wagner-Peyser funds must be used for employees at workforce centers who 86.35provide direct assistance to unemployed and underemployed workers and no more than 87.125 percent may be used for providing hiring and human resource services for employers. 87.2The funds under this section may be used to establish an internet based labor exchange 87.3system. By July 1 of each year, the commissioner must submit a report to the committees 87.4of the legislature responsible for oversight of unemployment insurance with details on 87.5the use of Wagner-Peyser funds, including the number of employee positions funded, the 87.6location of the employees, and the use of funds for internet labor exchange system and 87.7other business assistance.87.8    Sec. 2. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT 87.9INVESTMENT FUND.87.10    Subdivision 1.Eligible organization.For the purposes of this section, "eligible 87.11organization" means an organization established pursuant to section 116J.415 which 87.12provides business financing to greater Minnesota businesses.87.13    Subd. 2.Investment fund establishment.The commissioner shall establish an 87.14investment fund from which fund investments can be made in eligible organizations. The 87.15funds repaid by the eligible organizations are to be returned to the fund for subsequent 87.16reinvestment in eligible organizations.87.17    Subd. 3.Authorized investments.The commissioner is authorized to make 87.18investments in eligible organizations. The commissioner shall invest funds in the form of 87.19loans to eligible organizations for the purpose of providing capital to new and expanding 87.20businesses in the form of debt or equity, or both.87.21    Subd. 4.Investment authorized.The commissioner may make investments in 87.22eligible organizations under the following terms:87.23    (1) the organization seeking an investment of funds must guarantee repayment of not 87.24less than 100 percent of the funds invested in the eligible organization;87.25    (2) the investments are to be made in the form of a loan to the eligible organization 87.26for a term of ten years, at an interest rate of one percent;87.27    (3) during the ten-year term of the loan, the eligible organization shall make annual 87.28interest-only payments;87.29    (4) at the end of the ten-year term, the eligible organization is required to make a 87.30payment in the entire principal amount of the initial loan;87.31    (5) the state investment by the commissioner in any eligible organization may not 87.32exceed $2,000,000;87.33    (6) the full amount of state investment will be advanced to the approved eligible 87.34organization upon execution of a formal investment agreement, specifying the terms of the 87.35loan, as well as reporting and other requirements outlined in subdivision 5;88.1    (7) the eligible organization must maintain the funds in accounts that allow the funds 88.2to be readily available for business investments;88.3    (8) the eligible organization must make business investments totaling the entire 88.4amount of funds loaned by the state within three years of the execution of the investment 88.5agreement and subsequent transmittal of the funds; and88.6    (9) an eligible organization that receives an investment under this section shall 88.7report annually, in a format prescribed by the commissioner, the nature and amount of 88.8the business investments made, including, for each financing transaction involving funds 88.9received pursuant to this section, all forms and amounts of financing provided by the 88.10eligible organization from sources other than the investment fund established pursuant to 88.11this section, along with the number of jobs created and private sector investment leveraged.88.12    Subd. 5.Requirements for state investments.All investments are subject to an 88.13investment agreement which must include:88.14    (1) a description of the eligible organization, including business finance experience, 88.15qualifications, and investment history;88.16    (2) a description of the uses of investment proceeds by the eligible organization;88.17    (3) an explanation of the investment objectives;88.18    (4) a description of accounting and reporting standards to be used by the eligible 88.19organization; and88.20    (5) a copy of the most recent audited financial statements of the eligible organization.88.21    Sec. 3. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:88.22    Subdivision 1. Grant account. A contaminated site cleanup and development 88.23grant account is created in the general fund. Money in the account may be used, as 88.24appropriated by law, to make grants as provided in section 
         116J.554 and to pay for the 88.25commissioner's costs in reviewing applications and making grants. Notwithstanding 88.26section 
         16A.28, money appropriated to the account for this program from any source is 88.27available for four years until spent.88.28    Sec. 4. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:88.29    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the 88.30following criteria are met:88.31    (1) the site is not scheduled for funding during the current or next fiscal year under 88.32the Comprehensive Environmental Response, Compensation, and Liability Act, United 88.33States Code, title 42, section 9601, et seq. or under the Environmental Response, and 88.34Liability Act under sections 
         115B.01 to 
         115B.20; 89.1    (2) the appraised value of the site after adjusting for the effect on the value of the 89.2presence or possible presence of contaminants using accepted appraisal methodology, or 89.3the current market value of the site as issued under section 273.121, separately taking into 89.4account the effect of the contaminants on the market value, (i) is less than 75 percent of 89.5the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup 89.6costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and 89.7    (3) (2) if the proposed cleanup is completed, it is expected that the site will be 89.8improved with buildings or other improvements and these improvements will provide a 89.9substantial increase in the property tax base within a reasonable period of time or the site 89.10will be used for an important publicly owned or tax-exempt facility.89.11    Sec. 5. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:89.12    Subdivision 1. Priorities. (a) The legislature expects that applications for grants 89.13will exceed the available appropriations and the agency will be able to provide grants to 89.14only some of the applicant development authorities.89.15    (b) If applications for grants for qualified sites exceed the available appropriations, 89.16the agency shall make grants for sites that, in the commissioner's judgment, provide 89.17the highest return in public benefits for the public costs incurred and that meet all the 89.18requirements provided by law. In making this judgment, the commissioner shall consider 89.19the following factors:89.20    (1) the recommendations or ranking of projects by the commissioner of the Pollution 89.21Control Agency regarding the potential threat to public health and the environment that 89.22would be reduced or eliminated by completion of each of the response action plans;89.23    (2) the potential increase in the property tax base of the local taxing jurisdictions, 89.24considered relative to the fiscal needs of the jurisdictions, that will result from 89.25developments that will occur because of completion of each of the response action plans;89.26    (3) the social value to the community of the cleanup and redevelopment of the site, 89.27including the importance of development of the proposed public facilities on each of 89.28the sites;89.29    (4) the probability that each site will be cleaned up without use of government 89.30money in the reasonably foreseeable future by considering but not limited to the current 89.31market value of the site versus the cleanup cost;89.32    (5) the amount of cleanup costs for each site; and89.33    (6) the amount of the commitment of municipal or other local resources to pay for 89.34the cleanup costs.90.1    The factors are not listed in a rank order of priority; rather the commissioner may 90.2weigh each factor, depending upon the facts and circumstances, as the commissioner 90.3considers appropriate. The commissioner may consider other factors that affect the net 90.4return of public benefits for completion of the response action plan. The commissioner, 90.5notwithstanding the listing of priorities and the goal of maximizing the return of public 90.6benefits, shall make grants that distribute available money to sites both within and outside 90.7of the metropolitan area. The commissioner shall provide a written statement of the 90.8supporting reasons for each grant. Unless sufficient applications are not received for 90.9qualifying sites outside of the metropolitan area, at least 25 percent of the money provided 90.10as grants must be made for sites located outside of the metropolitan area.90.11    Sec. 6. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:90.12    Subdivision 1. Commissioner discretion. The commissioner may make a grant for 90.13up to 50 percent of the eligible costs of a project. The determination of whether to make a 90.14grant for a site is within the discretion of the commissioner, subject to this section and 90.15sections 
         116J.571 to 
         116J.574 and available unencumbered money in the redevelopment 90.16account. For grants made in fiscal years 2008 and 2009, at least 75 percent of the available 90.17grant funds must be used for grants in greater Minnesota. For grants made in fiscal year 90.182010 and later, at least 50 percent of the available grant funds must be used for grants 90.19in greater Minnesota. If the commissioner determines that the applications for grants 90.20for projects in greater Minnesota are less than the amount of grant funds available, the 90.21commissioner may make grants for projects anywhere in Minnesota. The commissioner's 90.22decisions and application of the priorities under this section are not subject to judicial 90.23review, except for abuse of discretion.90.24    Sec. 7. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:90.25    Subd. 1a. Priorities. (a) If applications for grants exceed the available 90.26appropriations, grants shall be made for sites that, in the commissioner's judgment, provide 90.27the highest return in public benefits for the public costs incurred. "Public benefits" include 90.28job creation, bioscience development, environmental benefits to the state and region, 90.29efficient use of public transportation, efficient use of existing infrastructure, provision of 90.30affordable housing, multiuse development that constitutes community rebuilding rather 90.31than single-use development, crime reduction, blight reduction, community stabilization, 90.32and property tax base maintenance or improvement. In making this judgment, the 90.33commissioner shall give priority to redevelopment projects with one or more of the 90.34following characteristics:91.1    (1) the need for redevelopment in conjunction with contamination remediation needs;91.2    (2) the redevelopment project meets current tax increment financing requirements 91.3for a redevelopment district and tax increments will contribute to the project;91.4    (3) the redevelopment potential within the municipality;91.5    (4) proximity to public transit if located in the metropolitan area; and91.6    (5) redevelopment costs related to expansion of a bioscience business in Minnesota; 91.7and91.8    (5)(6) multijurisdictional projects that take into account the need for affordable 91.9housing, transportation, and environmental impact.91.10    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 91.11commissioner may weigh each factor, depending upon the facts and circumstances, as 91.12the commissioner considers appropriate. The commissioner may consider other factors 91.13that affect the net return of public benefits for completion of the redevelopment plan. The 91.14commissioner, notwithstanding the listing of priorities and the goal of maximizing the 91.15return of public benefits, shall make grants that distribute available money to sites both 91.16within and outside of the metropolitan area. Unless sufficient applications are not received 91.17for qualifying sites outside of the metropolitan area, at least 25 percent of the money 91.18provided as grants must be made for sites located outside of the metropolitan area.91.19    Sec. 8. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:91.20    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and 91.21facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in 91.22addition to the powers granted by section 
         116J.035, the commissioner may: 91.23    (1) locate, develop, and promote international markets for Minnesota products 91.24and services;91.25    (2) arrange and lead trade missions to countries with promising international markets 91.26for Minnesota goods, technology, services, and agricultural products;91.27    (3) promote Minnesota products and services at domestic and international trade 91.28shows;91.29    (4) organize, promote, and present domestic and international trade shows featuring 91.30Minnesota products and services;91.31    (5) host trade delegations and assist foreign traders in contacting appropriate 91.32Minnesota businesses and investments;91.33    (6) develop contacts with Minnesota businesses and gather and provide information 91.34to assist them in locating and communicating with international trading or joint venture 91.35counterparts;92.1    (7) provide information, education, and counseling services to Minnesota businesses 92.2regarding the economic, commercial, legal, and cultural contexts of international trade;92.3    (8) provide Minnesota businesses with international trade leads and information 92.4about the availability and sources of services relating to international trade, such as 92.5export financing, licensing, freight forwarding, international advertising, translation, and 92.6custom brokering;92.7    (9) locate, attract, and promote foreign direct investment and business development 92.8in Minnesota to enhance employment opportunities in Minnesota;92.9    (10) provide foreign businesses and investors desiring to locate facilities in 92.10Minnesota information regarding sources of governmental, legal, real estate, financial, and 92.11business services;92.12    (11) enter into contracts or other agreements with private persons and public entities, 92.13including agreements to establish and maintain offices and other types of representation in 92.14foreign countries, to carry out the purposes of promoting international trade and attracting 92.15investment from foreign countries to Minnesota and to carry out this section, without 92.16regard to section 
         16C.06; and 92.17    (12) market trade-related materials to businesses and organizations, and the proceeds 92.18of which must be placed in a special revolving account and are appropriated to the 92.19commissioner to prepare and distribute trade-related materials.92.20    (b) The programs and activities of the commissioner of employment and economic 92.21development and the Minnesota Trade Division may not duplicate programs and activities 92.22of the commissioner of agriculture.92.23    (c) The commissioner shall notify the chairs of the senate Finance and house Ways 92.24and Means Committees of each agreement under this subdivision to establish and maintain 92.25an office or other type of representation in a foreign country.92.26    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing 92.27assistance to official visits by foreign government representatives and shall serve as liaison 92.28to the foreign diplomatic corps in Minnesota.92.29    Sec. 9. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision 92.30to read:92.31    Subd. 4.Workforce development intermediaries."Workforce development 92.32intermediaries" means public, private, or nonprofit entities that provide employment 92.33services to low-income individuals and have a demonstrated track record bringing together 92.34employers and workers, private and public funding streams, and other stakeholders to 92.35implement pathways to career advancement for low-income individuals. Entities may 93.1include, but are not limited to, nonprofit organizations, educational institutions, or the 93.2administrative entity of a local workforce service area.93.3    Sec. 10. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:93.4    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid 93.5for developing programs which assist in the transition of persons from welfare to work and 93.6assist individuals at or below 200 percent of the federal poverty guidelines. The program 93.7is to be operated by the board. The board shall consult and coordinate with program 93.8administrators at the Department of Employment and Economic Development to design 93.9and provide services for temporary assistance for needy families recipients.93.10    Pathways grants-in-aid may be awarded to educational or other nonprofit training 93.11institutions or to workforce development intermediaries for education and training 93.12programs and services supporting education and training programs that serve eligible 93.13recipients.93.14    Preference shall be given to projects that:93.15    (1) provide employment with benefits paid to employees;93.16    (2) provide employment where there are defined career paths for trainees;93.17    (3) pilot the development of an educational pathway that can be used on a continuing 93.18basis for transitioning persons from welfare to work; and93.19    (4) demonstrate the active participation of Department of Employment and 93.20Economic Development workforce centers, Minnesota State College and University 93.21institutions and other educational institutions, and local welfare agencies.93.22    Pathways projects must demonstrate the active involvement and financial 93.23commitment of private business. Pathways projects must be matched with cash or in-kind 93.24contributions on at least a one-to-one one-half-to-one ratio by participating private 93.25business.93.26    A single grant to any one institution shall not exceed $400,000. A portion of a grant 93.27may be used for preemployment training.93.28    Sec. 11. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:93.29    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 93.30have the meanings given them in this subdivision.93.31    (b) "Commissioner" means the commissioner of employment and economic 93.32development.93.33    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the 93.34time employment ceased or was working in the state at the time employment ceased and:94.1    (1) has been permanently separated or has received a notice of permanent separation 94.2from public or private sector employment and is eligible for or has exhausted entitlement 94.3to unemployment benefits, and is unlikely to return to the previous industry or occupation;94.4    (2) has been long-term unemployed and has limited opportunities for employment 94.5or reemployment in the same or a similar occupation in the area in which the individual 94.6resides, including older individuals who may have substantial barriers to employment by 94.7reason of age;94.8    (3) has been terminated or has received a notice of termination of employment as a 94.9result of a plant closing or a substantial layoff at a plant, facility, or enterprise;94.10    (4) has been self-employed, including farmers and ranchers, and is unemployed as a 94.11result of general economic conditions in the community in which the individual resides or 94.12because of natural disasters; or94.13    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who 94.14has spent a substantial number of years in the home providing homemaking service and 94.15(i) has been dependent upon the financial support of another; and now due to divorce, 94.16separation, death, or disability of that person, must find employment to self support; or (ii) 94.17derived the substantial share of support from public assistance on account of dependents 94.18in the home and no longer receives such support.94.19    To be eligible under this clause, the support must have ceased while the worker 94.20resided in Minnesota.94.21    (d) "Eligible organization" means a state or local government unit, nonprofit 94.22organization, community action agency, business organization or association, or labor 94.23organization.94.24    (e) "Plant closing" means the announced or actual permanent shutdown of a single 94.25site of employment, or one or more facilities or operating units within a single site of 94.26employment.94.27    (f) "Substantial layoff" means a permanent reduction in the workforce, which is 94.28not a result of a plant closing, and which results in an employment loss at a single site 94.29of employment during any 30-day period for at least 50 employees excluding those 94.30employees that work less than 20 hours per week.94.31    Sec. 12. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:94.32    Subdivision 1. Determination and collection of special assessment. (a) In addition 94.33to amounts due from an employer under the Minnesota unemployment insurance program, 94.34each employer, except an employer making reimbursements is liable for a special 94.35assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on 95.1all taxable wages, as defined in section 
         268.035, subdivision 24. Beginning January 1, 95.22008, the special assessment shall be levied at a rate of .085 percent per year on all taxable 95.3wages. The assessment shall become due and be paid by each employer on the same 95.4schedule and in the same manner as other amounts due from an employer under section 95.5268.051, subdivision 1
         .95.6    (b) The special assessment levied under this section shall be subject to the same 95.7requirements and collection procedures as any amounts due from an employer under the 95.8Minnesota unemployment insurance program.95.9    Sec. 13. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:95.10    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit 95.11corporation with which it has entered into an agreement under subdivision 1. These 95.12loans must be used to support a new or expanding business. This support may include 95.13such forms of financing as the sale of goods to the business on installment or deferred 95.14payments, lease purchase agreements, or royalty investments in the business. The interest 95.15rate charged by a nonprofit corporation for a loan under this subdivision must not exceed 95.16the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the 95.17nonprofit corporation may charge a loan origination fee equal to or less than one percent 95.18of the loan value. The nonprofit corporation may retain the amount of the origination fee. 95.19The nonprofit corporation must provide at least an equal match to the loan received by the 95.20board. The maximum loan available to the nonprofit corporation under this subdivision is 95.21$50,000. Loans made to the nonprofit corporation under this subdivision may be made 95.22without interest. Repayments made by the nonprofit corporation must be deposited in the 95.23revolving fund created for urban initiative grants.95.24    Sec. 14. [116O.115] SMALL BUSINESS GROWTH ACCELERATION 95.25PROGRAM.95.26    Subdivision 1.Establishment; purpose.The small business growth acceleration 95.27program is established. The purpose of the program is to (1) help qualified companies 95.28implement technology and business improvements; and (2) bridge the gap between 95.29standard market pricing for technology and business improvements and what qualified 95.30companies can afford to pay.95.31    Subd. 2.Qualified company.A company is qualified to receive assistance under 95.32the small business growth acceleration program if it is a manufacturing company or a 95.33manufacturing-related service company that employs 100 or fewer full-time equivalent 95.34employees.96.1    Subd. 3.Applications for assistance.A company seeking assistance under the 96.2small business growth acceleration program must file an application according to the 96.3requirements of the corporation. A company's application for small business growth 96.4acceleration program assistance must include documentation of the company's overall plan 96.5for technology and business improvement and prioritize the components of the overall 96.6plan. The application must also document the company's need for small business growth 96.7acceleration program funds in order to carry forward the highest priority components of 96.8the plan.96.9    Subd. 4.Fund awards; use of funds.(a) The corporation shall establish 96.10procedures for determining which applicants for assistance under the small business 96.11growth acceleration program will receive program funding. Funding shall be awarded 96.12only to accelerate a qualified company's adoption of needed technology or business 96.13improvements when the corporation concludes that it is unlikely the improvements could 96.14be accomplished in any other way.96.15    (b) The maximum amount of funds awarded to a qualified company under the small 96.16business growth acceleration program for a particular project must not exceed 50 percent 96.17of the total cost of a project and must not under any circumstances exceed $25,000 during 96.18a calendar year. The corporation shall not award to a qualified company small business 96.19growth acceleration program funds in excess of $50,000 per year.96.20    (c) Any funds awarded to a qualified company under the small business growth 96.21acceleration program must be used for business services and products that will enhance the 96.22operation of the company. These business services and products must come either directly 96.23from the corporation or from a network of expert providers identified and approved by 96.24the corporation. No company receiving small business growth acceleration program 96.25funds may use the funds for refinancing, overhead costs, new construction, renovation, 96.26equipment, or computer hardware.96.27    (d) Any funds awarded must be disbursed to the qualified company as reimbursement 96.28documented according to requirements of the corporation.96.29    Subd. 5.Service agreements.The corporation shall enter a written service 96.30agreement with each company awarded funds under the small business growth acceleration 96.31program. Each service agreement shall clearly articulate the company's need for service, 96.32state the cost of the service, identify who will provide the service, and define the scope of 96.33the service that will be provided. The service agreement must also include an estimate 96.34of the financial impact of the service on the company and require the company to report 96.35the actual financial impact of the service to the corporation 24 months after the service is 96.36provided.97.1    Subd. 6.Reporting.The corporation shall report annually to the legislative 97.2committees with fiscal jurisdiction over the Department of Employment and Economic 97.3Development:97.4    (1) the funds awarded under the small business growth acceleration program during 97.5the past 12 months;97.6    (2) the estimated financial impact of the funds awarded to each company receiving 97.7service under the program; and97.8    (3) the actual financial impact of funds awarded during the past 24 months.97.9    Sec. 15. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.97.10    Subdivision 1.Definitions.For the purposes of this section and section 179.87: 97.11    (1) "employer" means any person or business entity having 25 or more employees 97.12in the meatpacking industry; and97.13    (2) "meatpacking industry" means business operations in which slaughtering, 97.14butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry 97.15packing, poultry manufacturing, pet food manufacturing, processing of meatpacking 97.16products, or rendering is carried on. Meatpacking products include livestock and poultry 97.17products.97.18    Subd. 2.Right to adequate facilities.An employer must provide its employees:97.19    (1) adequate and working restroom facilities;97.20    (2) adequate room for meal and rest breaks;97.21    (3) adequate locker facilities; and97.22    (4) adequate time for necessary restroom and meal breaks as required under chapter 97.23177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter 97.24126, or a valid collective bargaining agreement.97.25    Subd. 3.Right to adequate equipment and training.An employer must furnish its 97.26employees with equipment and training that is adequate to perform the job task assigned. 97.27An employer must make ongoing skill development and training opportunities, including 97.28supervisory training, available to employees.97.29    Subd. 4.Information provided to employee by employer.(a) An employer must 97.30provide an explanation in an employee's native language of the employee's rights and 97.31duties as an employee either person-to-person or through written materials as required 97.32by state or federal law, or a valid collective bargaining agreement that, at a minimum, 97.33includes:97.34    (1) a complete description of the salary and benefits plans as they relate to the 97.35employee as required under chapter 181;98.1    (2) a job description for the employee's position as required under chapter 181;98.2    (3) a description of leave policies as required under chapter 181 and United States 98.3Code, title 29, chapter 28;98.4    (4) a description of the work hours and work hours policy as required under chapter 98.5181; United States Code, title 29, chapter 201; or a valid collective bargaining agreement; 98.6and98.7    (5) a description of the occupational hazards known to exist for the position as 98.8required under chapters 181 and 182 and United States Code, title 29, chapter 15.98.9    (b) The explanation must also include information on the following employee rights 98.10as protected by state or federal law and a description of where additional information 98.11about those rights may be obtained:98.12    (1) the right to organize and bargain collectively as required under this chapter and 98.13chapter 177, and United States Code, title 29, chapter 7;98.14    (2) the right to a safe workplace as required under chapters 181 and 182 and United 98.15States Code, title 29, chapter 15; and98.16    (3) the right to be free from discrimination as required under this chapter and 98.17chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.98.18    Subd. 5.Civil action.A person aggrieved as a result of a violation of this section 98.19may file suit in any district court of this state. If the court finds that the respondent has 98.20intentionally violated this section, the court may award damages up to and including an 98.21amount equal to the original damages and may provide injunctive relief.98.22    Subd. 6.Criminal penalty.An employer who violates this section is guilty of a 98.23misdemeanor.98.24    Sec. 16. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS 98.25OMBUDSMAN.98.26    Subdivision 1.Position established.The position of meatpacking industry workers 98.27rights ombudsman is established within the Department of Labor and Industry. The 98.28ombudsman shall be an employee of the department. The ombudsman shall be appointed 98.29by the commissioner in consultation with the chairs of the standing committees of the 98.30senate and house of representatives with jurisdiction over labor and employment issues in 98.31accordance with the preference established in subdivision 5.98.32    Subd. 2.Duties.The ombudsman shall inspect and review the practices and 98.33procedures of meatpacking operations in the state. The ombudsman shall work to ensure 98.34workers rights under section 179.86 are protected.99.1    Subd. 3.Access.The ombudsman or designated representatives of the ombudsman 99.2shall have access to all meatpacking operations in the state at any time meatpacking 99.3products are being processed and industry workers are on the job.99.4    Subd. 4.Office.Necessary office space, furniture, equipment, and supplies as 99.5well as necessary assistance for the ombudsman shall be provided by the Department of 99.6Labor and Industry.99.7    Subd. 5.Language preference.Preference shall be given to applicants for the 99.8ombudsman position who are fluent in languages in addition to English.99.9    Subd. 6.Report.The ombudsman shall, on or before December 1 of each year, 99.10submit a report to the members of the legislature and the governor regarding any 99.11recommended actions the ombudsman deems necessary or appropriate to provide for the 99.12fair treatment of workers in the meatpacking industry.99.13    Sec. 17. Minnesota Statutes 2006, section 181.78, is amended by adding a subdivision 99.14to read:99.15    Subd. 4.Forfeiture of employer rights.(a) This subdivision applies to an 99.16invention or proposal by an employee in which the employer has an enforceable interest 99.17by contract or otherwise.99.18    (b) An employer who has a right to develop or utilize an invention or proposal 99.19must make a substantial investment in the invention or proposal within five years of the 99.20submission of the invention or proposal or forfeit all rights and interests in the invention 99.21or proposal to the employee.99.22    (c) An employee who has acquired the rights and interests of an employer under 99.23paragraph (b) may transfer that interest in the invention or proposal to anyone.99.24    (d) An employer must notify in writing an employee who submits an invention or 99.25proposal to the employer of the employee's right under this subdivision within ten days of 99.26the submission. The employer must date and describe the proposal or invention received 99.27by the employer and provide a copy to the employee.99.28    Sec. 18. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE 99.29PRESENCE OF LIQUOR.99.30    No minor under the age of 18 shall be employed in any rooms constituting the place 99.31in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any 99.32tasks involving the serving, dispensing, or handling of such liquors that are consumed on 99.33the premises except that:100.1    (1) minors who have reached the age of 16 may be employed to perform busing or 100.2dishwashing services in those rooms or areas of a restaurant, hotel, motel, or resort where 100.3the presence of intoxicating liquor is incidental to food service or preparation; 100.4    (2) minors who have reached the age of 16 may be employed to perform busing or 100.5dishwashing services or to provide waiter or waitress service in rooms or areas where the 100.6presence of 3.2 percent malt liquor is incidental to food service or preparation;100.7    (3) minors who have reached the age of 16 may be employed to provide musical 100.8entertainment in those rooms or areas where the presence of intoxicating liquor and 3.2100.9percent malt liquor is incidental to food service or preparation; and 100.10    (4) minors are not prevented from working at tasks which are not prohibited by law 100.11in establishments where liquor is sold, served, dispensed, or handled in those rooms or 100.12areas where no liquor is consumed or served.100.13    Sec. 19. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:100.14    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on 100.15employers and employees of this state resulting from personal injuries and illnesses arising 100.16out of work situations is substantial; that the prevention of these injuries and illnesses is an 100.17important objective of the government of this state; that the greatest hope of attaining this 100.18objective lies in programs of research and education, and in the earnest cooperation of 100.19government, employers and employees; and that a program of regulation and enforcement 100.20is a necessary supplement to these more basic programs.100.21    The legislature declares it to be its purpose and policy through the exercise of its 100.22powers to assure so far as possible every worker in the state of Minnesota safe and 100.23healthful working conditions and to preserve our human resources by:100.24    (a) authorizing the Occupational Safety and Health Advisory Council to advise, 100.25consult with or recommend on any matters relating to the Minnesota occupational 100.26safety and health plan to the commissioner of labor and industry and by authorizing the 100.27commissioner of labor and industry to promulgate and enforce mandatory occupational 100.28safety and health standards applicable to employers and employees in the state of 100.29Minnesota;100.30    (b) encouraging employers and employees to increase their efforts to reduce the 100.31number of occupational safety and health hazards at their places of employment, and to 100.32stimulate employers and employees to institute new and to perfect existing programs for 100.33providing safe and healthful working conditions;100.34    (c) providing that employers and employees have separate but dependent 100.35responsibilities and rights with respect to achieving safe and healthful working conditions;101.1    (d) providing for research in the field of occupational safety and health; including 101.2the psychological factors involved, and by developing innovative methods, techniques, 101.3and approaches for dealing with occupational safety and health problems;101.4    (e) exploring ways to discover latent diseases, establishing causal connections 101.5between diseases and work in environmental conditions, and conducting other research 101.6relating to health problems, in recognition of the fact that occupational health standards 101.7present problems often different from those involved in occupational safety;101.8    (f) utilizing advances already made by federal laws and regulations providing safe 101.9and healthful working conditions;101.10    (g) providing criteria which will assure insofar as practicable that no employee 101.11will suffer diminished health, functional capacity, or life expectancy as a result of work 101.12experience;101.13    (h) providing an effective enforcement program which shall include locating 101.14enforcement personnel in areas of the state with a higher incidence of workplace fatalities, 101.15injuries, and complaints and a prohibition against giving advance notice of an inspection 101.16and sanctions for any individual violating this prohibition;101.17    (i) providing for appropriate reporting procedures with respect to occupational 101.18safety and health, which procedures will help achieve the objectives of this chapter and 101.19accurately describe the nature of the occupational safety and health problem;101.20    (j) encouraging joint labor-management efforts to reduce injuries and diseases 101.21arising out of employment;101.22    (k) providing consultation to employees and employers which will aid them in 101.23complying with their responsibilities under this chapter where such consultation does not 101.24interfere with the effective enforcement of this chapter; and101.25    (l) providing for training programs to increase the number and competence of 101.26personnel engaged in the field of occupational safety and health.101.27    Sec. 20. [182.6551] CITATION.101.28    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."101.29    Sec. 21. [182.6552] DEFINITIONS.101.30    Subdivision 1.Direct patient care worker."Direct patient care worker" means an 101.31individual doing the job of directly providing physical care to patients including nurses, as 101.32defined by section 148.171, who provide physical care to patients.102.1    Subd. 2.Health care facility."Health care facility" means a hospital as defined in 102.2section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55, 102.3subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.102.4    Subd. 3.Safe patient handling."Safe patient handling" means a process, based on 102.5scientific evidence on causes of injuries, that uses safe patient handling equipment rather 102.6than people to transfer, move, and reposition patients in all health care facilities to reduce 102.7workplace injuries. This process also reduces the risk of injury to patients.102.8    Subd. 4.Safe patient handling equipment."Safe patient handling equipment" 102.9means engineering controls, lifting and transfer aids, or mechanical assistive devices used 102.10by nurses and other direct patient care workers instead of manual lifting to perform the 102.11acts of lifting, transferring, and repositioning health care facility patients and residents.102.12    Sec. 22. [182.6553] SAFE PATIENT HANDLING PROGRAM.102.13    Subdivision 1.Safe patient handling program required.(a) By July 1, 2008, 102.14every licensed health care facility in the state shall adopt a written safe patient handling 102.15policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing 102.16manual lifting of patients by nurses and other direct patient care workers by utilizing 102.17safe patient handling equipment.102.18    (b) The program shall address:102.19    (1) assessment of hazards with regard to patient handling;102.20    (2) the acquisition of an adequate supply of appropriate safe patient handling 102.21equipment;102.22    (3) initial and ongoing training of nurses and other direct patient care workers on 102.23the use of this equipment;102.24    (4) procedures to ensure that physical plant modifications and major construction 102.25projects are consistent with program goals; and 102.26    (5) periodic evaluations of the safe patient handling program.102.27    Subd. 2.Safe patient handling committee.(a) By July 1, 2008, every licensed 102.28health care facility in the state shall establish a safe patient handling committee either by 102.29creating a new committee or assigning the functions of a safe patient handling committee 102.30to an existing committee.102.31    (b) Membership of a safe patient handling committee or an existing committee must 102.32meet the following requirements: 102.33    (1) at least half the members shall be nonmanagerial nurses and other direct patient 102.34care workers; and 103.1    (2) in a health care facility where nurses and other direct patient care workers 103.2are covered by a collective bargaining agreement, the union shall select the committee 103.3members proportionate to its representation of nonmanagerial workers, nurses, and other 103.4direct patient care workers.103.5    (c) A health care organization with more than one covered health care facility may 103.6establish a committee at each facility or one committee to serve this function for all the 103.7facilities. If the organization chooses to have one overall committee for multiple facilities, 103.8at least half of the members of the overall committee must be nonmanagerial nurses and 103.9other direct patient care workers and each facility must be represented on the committee.103.10    (d) Employees who serve on a safe patient handling committee must be compensated 103.11by their employer for all hours spent on committee business.103.12    Subd. 3.Facilities with existing programs.A facility that has already adopted a 103.13safe patient handling policy that satisfies the requirements of subdivision 1, and established 103.14a safe patient handling committee by July 1, 2008, is considered to be in compliance 103.15with those requirements. The committee must continue to satisfy the requirements of 103.16subdivision 2, paragraph (b), on an ongoing basis. 103.17    Subd. 4.Committee duties.A safe patient handling committee shall:103.18    (1) complete a patient handling hazard assessment that: 103.19    (i) considers patient handling tasks, types of nursing units, patient populations, and 103.20the physical environment of patient care areas; 103.21    (ii) identifies problems and solutions; 103.22    (iii) identifies areas of highest risk for lifting injuries; and 103.23    (iv) recommends a mechanism to report, track, and analyze injury trends;103.24    (2) make recommendations on the purchase, use, and maintenance of an adequate 103.25supply of appropriate safe patient handling equipment;103.26    (3) make recommendations on training of nurses and other direct patient care 103.27workers on use of safe patient handling equipment, initially when the equipment arrives at 103.28the facility and periodically afterwards;103.29    (4) conduct annual evaluations of the safe patient handling implementation plan and 103.30progress toward goals established in the safe patient handling policy; and103.31    (5) recommend procedures to ensure that, when remodeling of patient care areas 103.32occurs, the plans incorporate safe patient handling equipment or the physical space and 103.33construction design needed to accommodate safe patient handling equipment at a later date.103.34    Subd. 5.Training materials.The commissioner shall make training materials on 103.35implementation of this section available to all health care facilities at no cost as part of the 103.36training and education duties of the commissioner under section 182.673.104.1    Subd. 6.Enforcement.This section shall be enforced by the commissioner under 104.2section 182.661. A violation of this section is subject to the penalties provided under 104.3section 182.666.104.4    Subd. 7.Grant program.The commissioner may make grants to health care 104.5facilities to acquire safe patient handling equipment and for training on safe patient 104.6handling and safe patient handling equipment. Grants to any one facility may not exceed 104.7$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The 104.8commissioner shall establish a grant application process. The commissioner may give 104.9priority for grants to facilities that demonstrate that acquiring safe patient handling 104.10equipment will impose a financial hardship on the facility. For health care facilities 104.11that provide evidence of hardship, the commissioner may waive the 50 percent match 104.12requirement and may grant such a facility more than $40,000. Health care facilities that 104.13the commissioner determines are experiencing hardship shall not be required to meet the 104.14safe patient handling requirements until July 1, 2012.104.15    Sec. 23. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:104.16    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall not 104.17be eligible to receive unemployment benefits for any week with respect to which the 104.18applicant is receiving, has received, or has filed for payment, equal to or in excess of the 104.19applicant's weekly unemployment benefit amount, in the form of:104.20    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause 104.21shall not apply to vacation pay paid upon a permanent separation from employment;104.22    (2) severance pay, bonus pay, sick pay, and any other money payments, except 104.23earnings under subdivision 5, and back pay under subdivision 6, paid by an employer 104.24because of, upon, or after separation from employment, but only if the money payment is 104.25considered wages at the time of payment under section 
         268.035, subdivision 29, or United 104.26States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;. 104.27This clause does not apply to the first $10,000 of any amount of severance pay, bonus 104.28pay, sick pay, or any other payments paid to an employee with annual salary or wages 104.29under $75,000; or104.30    (3) pension, retirement, or annuity payments from any plan contributed to by a base 104.31period employer including the United States government, except Social Security benefits 104.32which are provided for in subdivision 4. The base period employer contributed to the 104.33plan if the contribution is excluded from the definition of wages under section 
         268.035, 104.34subdivision 29
         , clause (1), or United States Code, title 26, section 3121, clause (2), of 104.35the Federal Insurance Contribution Act.105.1    An applicant shall not be considered to have received the lump sum payment if the 105.2applicant immediately deposits that payment in a qualified pension plan or account; or105.3    (4) holiday pay.105.4    (b) This subdivision shall apply to all the weeks of payment and shall be applied to 105.5the period immediately following the last day of employment. The number of weeks of 105.6payment shall be determined as follows:105.7    (1) if the payments are made periodically, the total of the payments to be received 105.8shall be divided by the applicant's last level of regular weekly pay from the employer; or105.9    (2) if the payment is made in a lump sum, that sum shall be divided by the applicant's 105.10last level of regular weekly pay from the employer.105.11    (c) If the payment is less than the applicant's weekly unemployment benefit amount, 105.12unemployment benefits shall be reduced by the amount of the payment. If the computation 105.13of reduced unemployment benefits is not a whole dollar, it shall be rounded down to the 105.14next lower whole dollar.105.15EFFECTIVE DATE.This section is effective for unemployment benefits paid on 105.16or after January 1, 2006, regardless of when the continued request was filed or the week 105.17for which the unemployment benefits are paid.105.18    Sec. 24. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision 105.19to read:105.20    Subd. 5.Unemployment insurance benefits telephone system.The commissioner 105.21must ensure that the telephone system used for unemployment insurance benefits provides 105.22an option for any caller to speak to an unemployment insurance specialist. An individual 105.23who calls any of the publicized telephone numbers seeking information about applying for 105.24benefits or on the status of a claim must have the option to speak on the telephone to a 105.25specialist who can provide direct assistance or can direct the caller to the person or office 105.26that is able to respond to the caller's needs.105.27    Sec. 25. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:105.28    Subd. 13. Supported employment.(a) "Supported employment" means 105.29employment of a person with a disability so severe that the person needs ongoing training 105.30and support to get and keep a job in which:105.31    (1) the person engages in paid work in a position removed from the service vendor's 105.32site where individuals without disabilities who do not require public subsidies also may 105.33be employed;106.1    (2) public funds are necessary to provide ongoing training and support services 106.2throughout the period of the person's employment; and106.3    (3) the person has the opportunity for social interaction with individuals who do not 106.4have disabilities and who are not paid caregivers.106.5    (b) If the commissioner has certified a rehabilitation facility setting as integrated, 106.6then employment at that site may be considered supported employment.106.7    Sec. 26. Minnesota Statutes 2006, section 268A.01, is amended by adding a 106.8subdivision to read:106.9    Subd. 14.Affirmative business enterprise employment."Affirmative business 106.10enterprise employment" means employment which provides paid work on the premises of 106.11an affirmative business enterprise as certified by the commissioner.106.12    Affirmative business enterprise employment is considered community employment 106.13for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided 106.14that the wages for individuals reported must be at or above customary wages for the 106.15same employer. The employer must also provide one benefit package that is available to 106.16all employees.106.17    Sec. 27. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:106.18    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit 106.19corporation, or combination thereof establishing a rehabilitation facility shall appoint a 106.20rehabilitation facility board of no fewer than nineseven voting members before becoming 106.21eligible for the assistance provided by sections 
         268A.06 to 
         268A.15. When any city, 106.22town, or county singly establishes such a rehabilitation facility, the board shall be 106.23appointed by the chief executive officer of the city or the chair of the governing board 106.24of the county or town. When any combination of cities, towns, counties, or nonprofit 106.25corporations establishes a rehabilitation facility, the chief executive officers of the cities, 106.26nonprofit corporations, and the chairs of the governing bodies of the counties or towns 106.27shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation 106.28facility, the corporation shall appoint the board of directors. Membership on a board 106.29shall be representative of the community served and shall include a person with a 106.30disability. One-third to one-half of the board shall be representative of industry or 106.31business. The remaining members should be representative of lay associations for persons 106.32with a disability, labor, the general public, and education, welfare, medical, and health 106.33professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude 106.34the appointment of elected or appointed public officials or members of the board of 107.1directors of the sponsoring nonprofit corporation to the board, so long as the representation 107.2described above is preserved. If a county establishes an extended employment program 107.3and manages the program with county employees, the governing board shall be the county 107.4board of commissioners, and other provisions of this chapter pertaining to membership on 107.5the governing board do not apply. 107.6    Sec. 28. Minnesota Statutes 2006, section 268A.15, is amended by adding a 107.7subdivision to read:107.8    Subd. 9.Integrated setting.At the commissioner's discretion, paid work on the 107.9premises of a rehabilitation facility may be certified as an integrated setting after a site 107.10review by the department.107.11    Sec. 29. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision 107.12to read:107.13    Subd. 5.Local planning assistance.A regional development commission or, 107.14in regions not served by regional development commissions, a regional organization 107.15selected by the commissioner of employment and economic development, may develop a 107.16program to support planning on behalf of local units of government. The local planning 107.17must be related to issues of regional or statewide significance and may include, but is not 107.18limited to, the following:107.19    (1) local planning and development assistance, which may include local zoning 107.20ordinances and land use plans;107.21    (2) community or economic development plans, which may include workforce 107.22development plans, housing development plans and market analysis, JOBZ administration, 107.23grant writing assistance, and grant administration;107.24    (3) environment and natural resources plans, which may include solid waste 107.25management plans, wastewater management plans, and renewable energy development 107.26plans;107.27    (4) rural community health services; and107.28    (5) development of geographical information systems to serve regional needs, 107.29including hardware and software purchases and related labor costs.107.30    Each regional development commission or organization shall submit to the 107.31commissioner of employment and economic development an annual work program 107.32that outlines the work items for the upcoming year and establishes the relationship of 107.33the work items to development issues of regional or statewide significance. The entity 107.34completing the annual work program and identifying the statewide development issues 108.1shall consider input from the Departments of Employment and Economic Development, 108.2Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as 108.3appropriate to the issues.108.4    Sec. 30. WORKFORCE ENHANCEMENT FEE.108.5    If the commissioner of employment and economic development determines that 108.6the need for services under the dislocated worker program substantially exceeds the 108.7resources that will be available for the program, the commissioner may increase the 108.8special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no 108.9more than .12 percent of taxable wages.108.10    Sec. 31. FEDERAL PROCUREMENT LIAISON.108.11    The commissioner of employment and economic development must establish and 108.12operate a technology and commercialization unit in the Department of Employment and 108.13Economic Development. Appropriation for this purpose must be used to: coordinate 108.14public and private efforts to procure federal funding for collaborative research and 108.15development projects of primary benefit to small- and medium-sized businesses; promote 108.16contractual relationships between Minnesota businesses who, as recipients of federal 108.17grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess 108.18the research and development capabilities of small- and medium-sized businesses; 108.19undertake referral activities to link Minnesota companies with federal requests for 108.20proposal opportunities; and develop a framework for Minnesota companies to establish 108.21sole-sourcing relationships with federal agencies.108.22    The commissioner must report to the committees in the house of representatives and 108.23the senate having jurisdiction over bioscience and technology issues on the activities of 108.24the technology and commercialization unit by June 30 of each year.108.25    Sec. 32. LOCATION OF NORTHERN MINNESOTA INSPECTORS.108.26    By December 31, 2007, the commissioner of labor and industry must assign three 108.27occupational safety and health inspectors to one or more offices on the Iron Range and one 108.28inspector to an office in Bemidji.108.29    Sec. 33. ROLE OF STATE LEGISLATURE IN TRADE POLICY.108.30    (a) It shall be the policy of the state that approval for the state to be bound by any 108.31trade agreement requires the consent of the state legislature.109.1    (b) Four state legislative contacts must be informed by the governor when any trade 109.2agreement arrives in the governor's office. The four contacts are the majority and minority 109.3leader of the senate or their designated legislators, and the speaker and minority leader in 109.4the house of representatives or their designated legislators. The legislature declares that 109.5the purposes of the state contacts are to:109.6    (1) serve as the state's official legislative liaisons with the governor and the state 109.7legislature on trade-related matters;109.8    (2) serve as the legislature's designated recipients from the governor of federal 109.9requests for consent to consultation regarding investment, procurement, services, or other 109.10provisions of international trade agreements, which impinge on state law or regulatory 109.11authority reserved to the states;109.12    (3) transmit information regarding federal requests from the governor to all 109.13appropriate legislative committees;109.14    (4) issue a formal request to the Department of Employment and Economic 109.15Development and all appropriate state agencies to provide analysis of all proposed trade 109.16agreements' impact on state legislative authority and the economy of the state;109.17    (5) inform all members of the legislature on a regular basis about ongoing trade 109.18negotiations and dispute settlement proceedings with implications for the state more 109.19generally;109.20    (6) communicate the concerns of the legislature to the governor and the United 109.21States trade representative regarding ongoing and proposed trade negotiations; and 109.22    (7) notify the governor and the United States trade representative of the outcome 109.23of any legislative action.109.24    (c) The following actions are required before the state shall consent to the terms of 109.25a trade agreement:109.26    (1) when a federal trade request has been received, the governor must submit the 109.27request to the legislative contacts on a day both houses are in session. The request must 109.28contain a copy of the final legal text of the agreement together with:109.29    (i) a report by the Department of Employment and Economic Development in 109.30consultation with, at a minimum, the following agencies: Department of Administration, 109.31Department of Labor and Industry, Department of Agriculture, Department of Natural 109.32Resources, and the Minnesota Pollution Control Agency. The report shall include an 109.33analysis of how the agreement of the state to the specific provisions of the agreement 109.34will change or affect existing state law;109.35    (ii) a statement of any administrative action proposed to implement these trade 109.36agreement provisions in the state; and 110.1    (iii) a draft of legislation authorizing the state to sign on to the specific listed 110.2provisions of the agreement in question;110.3    (2) at least one public hearing, with adequate public notice, shall occur before the 110.4legislature votes on the bill; and 110.5    (3) the bill authorizing the state to sign on to specific listed provisions of an 110.6agreement is enacted into law.110.7    (d) It is the sense of this legislature that Congress should pass legislation instructing 110.8the United States trade representative to fully and formally consult individual state 110.9legislatures regarding procurement, services, investment, or any other trade agreement 110.10rules that impact state laws or authority before negotiations begin and as they develop, 110.11and to seek consent from state legislatures in addition to governors prior to binding 110.12states to conform their laws to the terms of international commercial agreements. Such 110.13legislation is necessary to ensure the prior informed consent of the state with regard to 110.14future international trade and investment agreements.110.15    (e) The state attorney general shall notify the United States trade representative of 110.16the policies in paragraph (d) in writing no later than 30 days after its effective date, and 110.17shall provide copies of the notice to the president of the senate, speaker of the house of 110.18representatives, the governor, and the state's congressional delegation.110.19    Sec. 34. STUDY; SAFE PATIENT HANDLING.110.20    (a) The commissioner of labor and industry shall study ways to require workers' 110.21compensation insurers to recognize compliance with Minnesota Statutes, section 110.22182.6553, in the workers' compensation premiums of health care and long-term care 110.23facilities. The commissioner shall report by January 15, 2008, the results of the study 110.24to the chairs of the policy committees of the legislature with primary jurisdiction over 110.25workers' compensation issues.110.26    (b) By January 15, 2008, the commissioner must make recommendations to the 110.27legislature regarding funding sources available to health care facilities for safe patient 110.28handling programs and equipment, including, but not limited to, low interest loans, interest 110.29free loans, and federal, state, or county grants.110.30    Sec. 35. WORK GROUP; SAFE PATIENT HANDLING.110.31    The Minnesota State Council on Disability shall convene a work group comprised 110.32of representatives from the Minnesota Medical Association and other organizations 110.33representing clinics, disability advocates, and direct care workers, to do the following:111.1    (1) assess the current options for and use of safe patient handling equipment in 111.2unlicensed outpatient clinics, physician offices, and dental settings;111.3    (2) identify barriers to the use of safe patient handling equipment in these settings; 111.4and111.5    (3) define clinical settings that move patients to determine applicability of the Safe 111.6Patient Handling Act.111.7    The work group must report to the legislature by January 15, 2008, including 111.8reports to the chairs of the senate and house of representatives committees on workforce 111.9development.111.10    Sec. 36. EFFECT ON RULES.111.11    The commissioner of labor and industry shall amend Minnesota Rules, part 111.125200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner 111.13may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting 111.14the amendment required by this section.111.15    Sec. 37. PUBLIC FACILITIES AUTHORITY FUNDING.111.16    To the greatest practical extent, projects on the Public Facilities Authority's 2007 111.17intended use plan, the listings for which were based on the Pollution Control Agency's 111.182006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 111.19qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 111.20section 21, that could not be certified by the Pollution Control Agency by the applicable 111.21deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court 111.22issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to 111.23obtain the required certification from the Pollution Control Agency.111.24    Sec. 38. REPEALER.111.25Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.111.26ARTICLE 8111.27LICENSING AND WAGES111.28    Section 1. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:111.29    Subdivision 1. Examination of records. The commissioner may enter during 111.30reasonable office hours or upon request and inspect the place of business or employment of 111.31any employer of employees working in the state, to examine and inspect books, registers, 111.32payrolls, and other records of any employer that in any way relate to wages, hours, and 112.1other conditions of employment of any employees. The commissioner may transcribe any 112.2or all of the books, registers, payrolls, and other records as the commissioner deems 112.3necessary or appropriate and may question the employees to ascertain compliance with 112.4sections 
         177.21 to 
         177.35 177.435. The commissioner may investigate wage claims or 112.5complaints by an employee against an employer if the failure to pay a wage may violate 112.6Minnesota law or an order or rule of the department. 112.7    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:112.8    Subd. 4. Compliance orders. The commissioner may issue an order requiring an 112.9employer to comply with sections 
         177.21 to 
         177.35 177.435, 
         181.02, 
         181.03, 
         181.031, 112.10181.032
         , 
         181.101, 
         181.11, 
         181.12, 
         181.13, 
         181.14, 
         181.145, 
         181.15, and181.79, 181.932, 112.11and 181.9325, or with any rule promulgated under section 
         177.28. The department shall 112.12serve the order upon the employer or the employer's authorized representative in person or 112.13by certified mail at the employer's place of business. An employer who wishes to contest 112.14the order must file written notice of objection to the order with the commissioner within 112.1515 calendar days after being served with the order. A contested case proceeding must then 112.16be held in accordance with sections 
         14.57 to 
         14.69. If, within 15 calendar days after being 112.17served with the order, the employer fails to file a written notice of objection with the 112.18commissioner, the order becomes a final order of the commissioner. 112.19    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 5, is amended to read:112.20    Subd. 5. Civil actions.(a) The commissioner may bring an action in the district 112.21court where an employer resides or where the commissioner maintains an office to enforce 112.22or require compliance with orders issued under subdivision 4.112.23    (b) If the district court determines that a violation of section 181.932 or 181.9325 112.24occurred, the court may order any appropriate relief, including but not limited to 112.25reinstatement, back pay, restoration of lost service credit, if appropriate, compensatory 112.26damages, and the expungement of any adverse records of a state employee or applicant 112.27for state employment who was the subject of the alleged acts of misconduct, and any 112.28appropriate relief as described in section 181.936.112.29    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:112.30    Subd. 8. Court actions; suits brought by private parties. An employee may bring 112.31a civil action seeking redress for a violation or violations of sections 
         177.21 to 
         177.35112.32177.44 directly to district court. An employer who pays an employee less than the wages 112.33and overtime compensation to which the employee is entitled under sections 
         177.21 to 113.1177.35177.44 is liable to the employee for the full amount of the wages, gratuities, and 113.2overtime compensation, less any amount the employer is able to establish was actually 113.3paid to the employee and for an additional equal amount as liquidated damages. In 113.4addition, in an action under this subdivision the employee may seek damages and other 113.5appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement 113.6between the employee and the employer to work for less than the applicable wage is not 113.7a defense to the action. 113.8    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:113.9    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may 113.10be filed in the district court of the county wherein a violation or violations of sections 113.11177.21
          to 
         177.35177.44 are alleged to have been committed, where the respondent resides 113.12or has a principal place of business, or any other court of competent jurisdiction. The 113.13action may be brought by one or more employees. 113.14    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:113.15    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8, 113.16the court shall order an employer who is found to have committed a violation or violations 113.17of sections 
         177.21 to 
         177.35177.44 to pay to the employee or employees reasonable costs, 113.18disbursements, witness fees, and attorney fees. 113.19    Sec. 7. Minnesota Statutes 2006, section 177.27, is amended by adding a subdivision 113.20to read:113.21    Subd. 11.Investigation of certain complaints.(a) The commissioner shall conduct 113.22an investigation of any matter that alleges a violation of sections 181.932 and 181.9325. 113.23The identity of the person providing the information that initiated the investigation shall 113.24be classified as private data, pursuant to section 13.02, subdivision 12, except that the 113.25identity may be disclosed to a law enforcement agency that is conducting a criminal 113.26investigation of the matter.113.27    (b) For each investigation completed, if the commissioner determines that there is 113.28reasonable cause to believe that an employer has violated section 181.932 or 181.9325, 113.29the commissioner shall report the nature and details of the alleged violation to the head 113.30of the employing agency or the appropriate appointing authority. If appropriate, the 113.31commissioner shall report this information to the attorney general, the policy committees 113.32of the house of representatives and senate having jurisdiction over the subject involved, 113.33and to any other authority that the commissioner deems appropriate. In any case 114.1in which the commissioner submits a report of alleged violations to the head of the 114.2employing agency or appropriate appointing authority, that individual shall report to the 114.3commissioner with respect to any action taken by the individual regarding the activity, the 114.4first report being transmitted no later than 30 days after the date of the auditor's report, 114.5and monthly thereafter until final action has been taken.114.6    (c) This subdivision shall not limit any authority conferred upon the attorney general 114.7or other department or agency of government to investigate and prosecute any matter.114.8    (d) The commissioner shall have all the powers and authority described in this 114.9section to conduct investigations pursuant to this subdivision.114.10    Sec. 8. [177.275] INVESTIGATION PROCEDURE.114.11    (a) The commissioner shall initiate an investigation of a written complaint of 114.12reprisal or retaliation in public employment as prohibited by section 181.932 or 181.9325 114.13within ten working days of its submission. The commissioner shall complete findings 114.14of the investigation within 60 working days thereafter, and shall provide a copy of the 114.15findings to the complaining employee or applicant for employment and to the appropriate 114.16supervisor, manager, employee, or appointing authority. When the allegations contained 114.17in a complaint of reprisal or retaliation are the same as, or similar to, those contained in 114.18another appeal, the commissioner may consolidate the appeals into the most appropriate 114.19format. In these cases, the time limits described in this subdivision shall not apply.114.20    (b) If the commissioner finds that the supervisor, manager, employee, or appointing 114.21power retaliated against the complainant for engaging in protected whistle-blower 114.22activities, the commissioner may issue a compliance order under section 177.27, 114.23subdivision 4.114.24    (c) In order for the governor and the legislature to determine the need to continue 114.25or modify state personnel procedures as they relate to the investigations of reprisals or 114.26retaliation for the disclosure of information by public employees, the commissioner, by 114.27June 30 of each year, shall submit a report to the governor and the legislature regarding 114.28complaints filed, hearings held, and legal actions taken under this section.114.29    Sec. 9. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:114.30    Subdivision 1. General authority. The commissioner may adopt rules, including 114.31definitions of terms, to carry out the purposes of sections 
         177.21 to 
         177.35 177.44, to 114.32prevent the circumvention or evasion of those sections, and to safeguard the minimum 114.33wage and overtime rates established by sections 
         177.24 and 
         177.25. 115.1    Sec. 10. Minnesota Statutes 2006, section 177.30, is amended to read:115.2177.30 KEEPING RECORDS; PENALTY.115.3    Every employer subject to sections 
         177.21 to 
         177.35177.44 must make and keep a 115.4record of: 115.5    (1) the name, address, and occupation of each employee;115.6    (2) the rate of pay, and the amount paid each pay period to each employee;115.7    (3) the hours worked each day and each workweek by the employee; and115.8    (4) for each employer subject to sections 177.41 to 177.44, and while performing 115.9work on public works projects funded in whole or in part with state funds, the prevailing 115.10wage master job classification of each employee working on the project for each hour 115.11worked; and115.12    (4) (5) other information the commissioner finds necessary and appropriate to 115.13enforce sections 
         177.21 to 
         177.35. The records must be kept for three years in or near the 115.14premises where an employee works except each employer subject to sections 177.41 to 115.15177.44, and while performing work on public works projects funded in whole or in part 115.16with state funds, the records must be kept for three years after the contracting authority 115.17has made final payment on the public works project. 115.18    The commissioner may fine an employer up to $1,000 for each failure to maintain 115.19records as required by this section. This penalty is in addition to any penalties provided 115.20under section 
         177.32, subdivision 1. In determining the amount of a civil penalty under 115.21this subdivision, the appropriateness of such penalty to the size of the employer's business 115.22and the gravity of the violation shall be considered. 115.23    Sec. 11. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:115.24    Subd. 3. Contract requirements. The contract must specifically state the prevailing 115.25wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also 115.26provide that the contracting authority may demand and the contractor or subcontractor 115.27shall furnish to the contracting authority, copies of any and all payrolls, and that the 115.28contracting authority may examine all records relating to wages paid laborers or mechanics 115.29on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision 115.30are in addition to any other requirements or authority set forth in other laws or rules for 115.31work to which sections 177.41 to 177.44 apply.115.32    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:115.33    Subd. 4. Determination by commissioner; posting; petition for reconsideration.115.34    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all 116.1trades and occupations required in any project must be ascertained before the state asks for 116.2bids. The commissioner of labor and industry shall investigate as necessary to ascertain 116.3the information. The commissionerEach contractor and subcontractor performing work 116.4on a public project shall keep the information posted on the project in at least one 116.5conspicuous place for the information of the employees working on the project. A person 116.6aggrieved by a final determination of the commissioner may petition the commissioner for 116.7reconsideration of findings. A person aggrieved by a decision of the commissioner after 116.8reconsideration may, within 20 days after the decision, petition the commissioner for a 116.9public hearing in the manner of a contested case under sections 
         14.57 to 
         14.61. 116.10    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:116.11    Subd. 6. Examination of records; investigation by the department. The 116.12Department of Labor and Industry shall enforce this section. The department may 116.13demand, and the contractor and subcontractor shall furnish to the department, copies 116.14of any or all payrolls. The department may examine all records relating to wages paid 116.15laborers or mechanics on work to which sections 
         177.41 to 
         177.44 apply. The department 116.16shall employ at least three investigators to perform on-site project reviews, receive and 116.17investigate complaints of violations of this section, and conduct training and outreach to 116.18contractors and contracting authorities for public works projects financed in whole or 116.19in part with state funds.116.20    Sec. 14. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision 116.21to read:116.22    Subd. 6a.Prevailing wage violations.Upon issuing a compliance order to an 116.23employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to 116.24177.44, the commissioner shall issue a withholding order to the contracting authority 116.25ordering the contracting authority to withhold payment of sufficient sum to the prime 116.26or general contractor on the project to satisfy the back wages assessed or otherwise 116.27cure the violation, and the contracting authority must withhold the sum ordered until 116.28the compliance order has become a final order of the commissioner and has been fully 116.29paid or otherwise resolved by the employer.116.30    During an investigation of a violation of sections 177.41 to 177.44 which the 116.31commissioner reasonably determines is likely to result in the finding of a violation of 116.32sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section 116.33177.27, subdivision 4, the commissioner may notify the contracting authority of the 116.34determination and the amount expected to be assessed and the contracting authority shall 117.1give the commissioner 90 days' prior notice of the date the contracting authority intends to 117.2make final payment.117.3    Sec. 15. [181.723] DEFINITIONS.117.4    Subdivision 1.Scope.The definitions in this subdivision apply to this section.117.5    (a) "Person" means any individual, limited liability corporation, corporation, 117.6partnership, incorporated or unincorporated association, sole proprietorship, joint stock 117.7company, or any other legal or commercial entity.117.8    (b) "Department" means the Department of Labor and Industry.117.9    (c) "Commissioner" means the commissioner of labor and industry or a duly 117.10designated representative of the commissioner who is either an employee of the 117.11Department of Labor and Industry or person working under contract with the Department 117.12of Labor and Industry.117.13    (d) "Individual" means a human being.117.14    (e) "Day" means calendar day unless otherwise provided.117.15    (f) "Knowingly" means knew or could have known with the exercise of reasonable 117.16diligence.117.17    (g) "Document" or "documents" includes papers; books; records; memoranda; data; 117.18contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 117.19records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars 117.20maintained in any form or manner.117.21    Subd. 2.Limited application.This section only applies to individuals performing 117.22public or private sector commercial or residential building construction or improvement 117.23services.117.24    Subd. 3.Employee-employer relationship.Except as provided in subdivision 117.254, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an 117.26individual who performs services for a person that are in the course of the person's trade, 117.27business, profession, or occupation is an employee of that person and that person is an 117.28employer of the individual.117.29    Subd. 4.Independent contractor.An individual is an independent contractor and 117.30not an employee of the person for whom the individual is performing services in the course 117.31of the person's trade, business, profession, or occupation only if (a) the individual holds 117.32a current independent contractor exemption certificate issued by the commissioner; and 117.33(b) the individual is performing services for the person under the independent contractor 117.34exemption certificate as provided in subdivision 6. The requirements in clauses (a) and (b) 117.35must be met in order to qualify as an independent contractor and not as an employee of 118.1the person for whom the individual is performing services in the course of the person's 118.2trade, business, profession, or occupation.118.3    Subd. 5.Application.To obtain an independent contractor exemption certificate, 118.4the individual must submit, in the manner prescribed by the commissioner, a complete 118.5application and the certificate fee required under subdivision 14.118.6    (a) A complete application must include all of the following information:118.7    (1) the individual's full name;118.8    (2) the individual's residence address and telephone number;118.9    (3) the individual's business name, address, and telephone number;118.10    (4) the services for which the individual is seeking an independent contractor 118.11exemption certificate;118.12    (5) the individual's Social Security number;118.13    (6) the individual's or the individual's business federal employer identification 118.14number, if a number has been issued to the individual or the individual's business;118.15    (7) any information or documentation that the commissioner requires by rule that 118.16will assist the department in determining whether to grant or deny the individual's 118.17application; and118.18    (8) The individual's sworn statement that the individual meets all of the following 118.19conditions:118.20    (i) the individual maintains a separate business with the individual's own office, 118.21equipment, materials, and other facilities;118.22    (ii) the individual holds or has applied for a federal employer identification number 118.23or has filed business or self-employment income tax returns with the federal Internal 118.24Revenue Service if the person has performed services in the previous year for which the 118.25individual is seeking the independent contractor exemption certificate;118.26    (iii) the individual operates under contracts to perform specific services for specific 118.27amounts of money and under which the individual controls the means of performing the 118.28services;118.29    (iv) the individual incurs the main expenses related to the service that the individual 118.30performs under contract;118.31    (v) the individual is responsible for the satisfactory completion of services that the 118.32individual contracts to perform and is liable for a failure to complete the service;118.33    (vi) the individual receives compensation for service performed under a contract on 118.34a commission or per-job or competitive bid basis and not on any other basis;118.35    (vii) the individual may realize a profit or suffer a loss under contracts to perform 118.36service;119.1    (viii) the individual has continuing or recurring business liabilities or obligations; and119.2    (ix) the success or failure of the individual's business depends on the relationship of 119.3business receipts to expenditures.119.4    (b) Within 30 days of receiving a complete application and the certificate fee, the 119.5commissioner must either grant or deny the application. The commissioner may deny 119.6an application for an independent contractor exemption certificate if the individual has 119.7not submitted a complete application and certificate fee or if the individual does not 119.8meet all of the conditions for holding the independent contractor exemption certificate. 119.9The commissioner may revoke an independent contractor exemption certificate if the 119.10commissioner determines that the individual no longer meets all of the conditions for 119.11holding the independent contractor exemption certificate, commits any of the actions 119.12set out in subdivision 7, or fails to cooperate with a department investigation into the 119.13continued validity of the individual's certificate. Once issued, an independent contractor 119.14exemption certificate remains in effect for two years unless:119.15    (1) revoked by the commissioner; or119.16    (2) canceled by the individual.119.17    (c) If the department denies an individual's original or renewal application for 119.18an independent contractor exemption certificate or revokes an independent contractor 119.19exemption certificate, the commissioner shall issue to the individual an order denying or 119.20revoking the certificate. The commissioner may issue an administrative penalty order to 119.21an individual or person who commits any of the actions set out in subdivision 7.119.22    (d) An individual or person to whom the commissioner issues an order under 119.23paragraph (c) shall have 30 days after service of the order to request a hearing. The request 119.24for hearing must be in writing and must be served on or faxed to the commissioner at the 119.25address or fax number specified in the order by the 30th day after service of the order. 119.26If the individual does not request a hearing or if the individual's request for a hearing is 119.27not served on or faxed to the commissioner by the 30th day after service of the order, the 119.28order shall become a final order of the commissioner and will not be subject to review 119.29by any court or agency. The date on which a request for hearing is served by mail shall 119.30be the postmark date on the envelope in which the request for hearing is mailed. If the 119.31individual serves or faxes a timely request for hearing, the hearing shall be a contested 119.32case hearing and shall be held in accordance with chapter 14.119.33    Subd. 6.Qualifications for exemption certificate.An individual is performing 119.34services for a person under an independent contractor exemption certificate if:119.35    (a) the individual is performing services listed on the individual's independent 119.36contractor exemption certificate;120.1    (b) at the time the individual is performing services listed on the individual's 120.2independent contractor exemption certificate, the individual meets all of the following 120.3conditions:120.4    (1) the individual maintains a separate business with the individual's own office, 120.5equipment, materials, and other facilities;120.6    (2) the individual holds or has applied for a federal employer identification number 120.7or has filed business or self-employment income tax returns with the federal Internal 120.8Revenue Service if the individual performed services in the previous year for which the 120.9individual has the independent contractor exemption certificate;120.10    (3) the individual is operating under contract to perform the specific services for 120.11the person for specific amounts of money and under which the individual controls the 120.12means of performing the services;120.13    (4) the individual is incurring the main expenses related to the services that the 120.14individual is performing for the person under the contract;120.15    (5) the individual is responsible for the satisfactory completion of the services 120.16that the individual has contracted to perform for the person and is liable for a failure 120.17to complete the services;120.18    (6) the individual receives compensation from the person for the services performed 120.19under the contract on a commission or per-job or competitive bid basis and not on any 120.20other basis;120.21    (7) the individual may realize a profit or suffers a loss under the contract to perform 120.22services for the person;120.23    (8) the individual has continuing or recurring business liabilities or obligations; and120.24    (9) the success or failure of the individual's business depends on the relationship of 120.25business receipts to expenditures.120.26    Subd. 7.Prohibited activities.(a) An individual shall not:120.27    (1) perform work as an independent contractor without first obtaining from the 120.28department an independent contractor exemption certificate;120.29    (2) perform work as an independent contractor when the department has denied or 120.30revoked the individual's independent contractor exemption certificate;120.31    (3) transfer to another individual or allow another individual to use the individual's 120.32independent contractor exemption certificate;120.33    (4) alter or falsify an independent contractor exemption certificate;120.34    (5) misrepresent the individual's status as an independent contractor; or121.1    (6) make a false material statement, representation, or certification; omit material 121.2information; or alter, conceal, or fail to file a document required by this section or any rule 121.3promulgated by the commissioner under rulemaking authority set out in this section.121.4    (b) A person for whom an individual is performing services shall not:121.5    (1) require an individual through coercion, misrepresentation, or fraudulent means to 121.6adopt independent contractor status;121.7    (2) knowingly misrepresent that an individual who has not been issued an 121.8independent contractor exemption certificate or is not performing services for the person 121.9under an independent contractor exemption certificate is an independent contractor; or121.10    (3) make a false material statement, representation, or certification; omit material 121.11information; or alter, conceal, or fail to file a document required by this section or any rule 121.12promulgated by the commissioner under rulemaking authority set out in this section.121.13    (c) A person for whom an individual is performing services must obtain a copy of the 121.14individual's independent contractor exemption certificate before services may commence. 121.15A copy of the independent contractor exemption certificate must be retained for five years 121.16from the date of receipt by the person for whom an individual is performing services.121.17    Subd. 8.Remedies.(a) An individual or person who violates any provision of 121.18subdivision 7 is subject to a penalty to be assessed by the department of up to $1,000 for 121.19each violation. The department shall deposit penalties in the assigned risk safety account.121.20    (b) An individual who has been injured by a violation of subdivision 7, paragraph 121.21(b), may bring a civil action for damages against the violator. If the individual is 121.22determined to be an employee or an independent contractor considered an employee of 121.23the violator of subdivision 7, paragraph (b), the employee's representative as defined in 121.24section 179.01, subdivision 5, may bring a civil action for damages against the violator 121.25on behalf of the employee. In addition to damages the court may award attorney fees, 121.26costs, and disbursements to a recovery under this provision.121.27    (c) Any court finding that a violation of subdivision 7 has occurred shall 121.28transmit a copy of its findings of fact and conclusion of law to the commissioner. The 121.29commissioner shall report the findings to the relevant state and federal agencies, including 121.30the commissioner of commerce, the commissioner of employment and economic 121.31development, the commissioner of revenue, the federal Internal Revenue Service, and the 121.32United States Department of Labor.121.33    Subd. 9.Commissioner's powers.(a) In order to carry out the purposes of this 121.34section, the commissioner may:121.35    (1) administer oaths and affirmations, certify official acts, interview, question, take 121.36oral or written statements, and take depositions;122.1    (2) request, examine, take possession of, photograph, record, and copy any 122.2documents, equipment, or materials;122.3    (3) at a time and place indicated by the commissioner, request persons to appear 122.4before the commissioner to give testimony and produce documents, equipment, or 122.5materials;122.6    (4) issue subpoenas to compel persons to appear before the commissioner to give 122.7testimony and produce documents, equipment, or materials; and122.8    (5) with or without notice, enter without delay upon any property, public or private, 122.9for the purpose of taking any action authorized under this subdivision or the applicable 122.10law, including obtaining information or conducting inspections or investigations.122.11    (b) Persons requested by the commissioner to give testimony or produce documents, 122.12equipment, or materials shall respond within the time and in the manner specified by the 122.13commissioner. If no time to respond is specified in the request, then a response shall be 122.14submitted within 30 days of the commissioner's service of the request.122.15    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property 122.16owner's representative, or lessee's representative to permit the commissioner's entry onto 122.17property as provided in paragraph (a), the commissioner may apply for an administrative 122.18inspection order in the Ramsey County District Court or, at the commissioner's discretion, 122.19in the district court in the county in which the property is located. The commissioner may 122.20anticipate that a property owner or lessee will refuse entry if the property owner, lessee, 122.21property owner's representative, or lessee's representative has refused to permit entry on a 122.22prior occasion or has informed the commissioner that entry will be refused. Upon showing 122.23of administrative probable cause by the commissioner, the district court shall issue an 122.24administrative inspection order that compels the property owner or lessee to permit the 122.25commissioner to enter the property for the purposes specified in paragraph (a).122.26    (d) Upon the application of the commissioner, a district court shall treat the failure of 122.27any person to obey a subpoena lawfully issued by the commissioner under this subdivision 122.28as a contempt of court.122.29    Subd. 10.Notice requirements.Unless otherwise specified, service of a document 122.30on a person under this section or section 326B.083 may be by mail, by personal service, 122.31or in accordance with any consent to service filed with the commissioner. Service by 122.32mail shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, 122.33subpart 2. Personal service shall be accomplished in the manner provided in Minnesota 122.34Rules, part 1400.5550, subpart 3.122.35    Subd. 11.Facsimile; timely service.When this section or section 326B.083 122.36permits a request for reconsideration or request for hearing to be served by facsimile on 123.1the commissioner, the facsimile shall not exceed 15 pages in length. The request shall be 123.2considered timely served if the facsimile is received by the commissioner, at the facsimile 123.3number identified by the commissioner in the order or notice of violation, no later than 123.44:30 p.m. central time on the last day permitted for faxing the request. Where the quality 123.5or authenticity of the faxed request is at issue, the commissioner may require the original 123.6request to be filed. Where the commissioner has not identified quality or authenticity 123.7of the faxed request as an issue and the request has been faxed in accordance with this 123.8subdivision, the person faxing the request does not need to file the original request with 123.9the commissioner.123.10    Subd. 12.Time period computation.In computing any period of time prescribed 123.11or allowed by this section, the day of the act, event, or default from which the designated 123.12period of time begins to run shall not be included. The last day of the period so computed 123.13shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the 123.14period runs until the next day which is not a Saturday, Sunday, or legal holiday.123.15    Subd. 13.Rulemaking.The commissioner may, in consultation with the 123.16commissioner of revenue and the commissioner of employment and economic 123.17development, adopt, amend, suspend, and repeal rules under the rulemaking provisions 123.18of chapter 14 that relate to the commissioner's responsibilities under this section. This 123.19subdivision is effective the day following final enactment.123.20    Subd. 14.Fee.The certificate fee for the original application and for the renewal 123.21of an independent contractor exemption certificate shall be $150. If an individual 123.22simultaneously submits an application for both an independent contractor exemption 123.23certificate under this section and a license under section 326.98, the application fee for 123.24the independent contractor exemption certificate shall be reduced to $100. The certificate 123.25fee is appropriated to the commissioner for payment of the costs related to administering 123.26and enforcing this section.123.27    Subd. 15.Notice to commissioner; review by commissioner of revenue.When 123.28the commissioner has reason to believe that an individual who holds a certificate has failed 123.29to maintain all the conditions required by subdivision 3 or is not performing services for a 123.30person under the independent contractor exemption certificate, the commissioner must 123.31notify the commissioner of revenue and the commissioner of employment and economic 123.32development. Upon receipt of notification from the commissioner that an individual who 123.33holds a certificate has failed to maintain all the conditions required by subdivision 3 123.34or is not performing services for a person under the independent contractor exemption 123.35certificate, the commissioner of revenue must review the information returns required 123.36under section 6041A of the Internal Revenue Code. The commissioner of revenue shall 124.1also review the submitted certification that is applicable to returns audited or investigated 124.2under section 289A.35.124.3    Subd. 16.Data classified.Certifications issued by the commissioner are public 124.4data. Applications and required documentation submitted by an individual is private 124.5data on an individual. Upon request of the Department of Revenue or the Department 124.6of Employment and Economic Development, the commissioner may release to the 124.7Department of Revenue and the Department of Employment and Economic Development 124.8applications and required documentation submitted by individuals and investigative data 124.9that relates to the department's issuance or denial of applications and the department's 124.10revocations of certificates. Except as otherwise provided by this subdivision, the 124.11department's investigative data shall be classified as provided in chapter 13.124.12EFFECTIVE DATE.This section is effective July 1, 2008.124.13    Sec. 16. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:124.14    Subdivision 1. Prohibited action. An employer shall not discharge, discipline, 124.15threaten, otherwise discriminate against, or penalize an employee regarding the employee's 124.16compensation, terms, conditions, location, or privileges of employment because:124.17    (a) the employee, or a person acting on behalf of an employee, in good faith, reports 124.18a violation or suspected violation of any federal or state law or rule adopted pursuant 124.19to law to an employer or to any governmental body or law enforcement official and 124.20the alleged violation involves a matter of public concern, including, but not limited to, 124.21violations that create a specific danger to the public health, safety, or environment;124.22    (b) the employee is requested by a public body or office to participate in an 124.23investigation, hearing, inquiry;124.24    (c) the employee refuses an employer's order to perform an action that the employee 124.25has an objective basis in fact to believe violates any state or federal law or rule or 124.26regulation adopted pursuant to law which violation the employee reasonably believes 124.27is a matter of public concern, including, but not limited to, violations that create a 124.28specific danger to the public health, safety, or environment, and the employee informs the 124.29employer that the order is being refused for that reason; or124.30    (d) the employee, in good faith, reports a situation in which the quality of health care 124.31services provided by a health care facility, organization, or health care provider violates a 124.32standard established by federal or state law or a professionally recognized national clinical 124.33or ethical standard and potentially places the public at risk of harm.;124.34    (e) a public employee refuses to alter, dilute, or suppress the objective representation 124.35or communication of scientific or technical data or findings, including but not limited to, 125.1findings of economic or environmental impact, or findings indicating consequences for 125.2the public's health or safety; or125.3    (f) a public employee communicates the findings of a scientific or technical study 125.4that the employee, in good faith, believes to be truthful and accurate, including reports to a 125.5governmental body or law enforcement official.125.6The disclosures protected pursuant to this section do not authorize the disclosure of trade 125.7secret information otherwise protected by law.125.8    Sec. 17. [181.9325] USE OF AUTHORITY TO INFLUENCE OR INTERFERE 125.9WITH DISCLOSURE OF INFORMATION.125.10    (a) A public employer may not directly or indirectly use or attempt to use the 125.11employer's official authority or influence for the purpose of intimidating, threatening, 125.12coercing, or attempting to intimidate, threaten, or coerce any person for the purpose of 125.13interfering with the rights described in section 181.932, or for the purpose of persuading 125.14the person to waive or disclaim any other legal rights related to the person's employment.125.15    (b) For purposes of this section, "use of official authority or influence" includes: 125.16promising to confer, or conferring, any benefit; effecting, or threatening to effect, any 125.17reprisal; or taking, or directing others to take, or recommending, processing, or approving, 125.18any personnel action, including but not limited to appointment, promotion, transfer, 125.19assignment, performance evaluation, suspension, or other disciplinary action.125.20    Sec. 18. Minnesota Statutes 2006, section 181.935, is amended to read:125.21181.935 INDIVIDUAL REMEDIES; PENALTY.125.22    (a) In addition to any remedies otherwise provided by law, an employee injured 125.23by a violation of section 
         181.932or 181.9325 may bring a civil action to recover any 125.24and all damages recoverable at law, together with costs and disbursements, including 125.25reasonable attorney's fees, and may receive such injunctive and other equitable relief as 125.26determined by the court. 125.27    (b) An employer who failed to notify, as required under section 
         181.933 or 
         181.934, 125.28an employee injured by a violation of section 
         181.932 is subject to a civil penalty of $25 125.29per day per injured employee not to exceed $750 per injured employee. 125.30    Sec. 19. [181.936] REPRISALS FOR DISCLOSURE OF IMPROPER 125.31GOVERNMENTAL ACTIVITIES; COMPLAINT PROCEDURE; PENALTIES.125.32    (a) A public employee or applicant for public employment who files a written 125.33complaint with the employee's or applicant's supervisor, manager, or the appointing 126.1power alleging actual or attempted acts of reprisal, retaliation, threats, coercion, or 126.2similar improper acts prohibited by section 181.9325, may also file a copy of the written 126.3complaint with the commissioner of labor and industry, together with a sworn statement 126.4that the contents of the written complaint are true, or are believed by the affiant to be true, 126.5under penalty of perjury. The complaint filed with the commissioner shall be filed within 126.612 months of the most recent act of reprisal complained about.126.7    (b) Any person who intentionally engages in acts of reprisal, retaliation, threats, 126.8coercion, or similar acts against a public employee or applicant for public employment 126.9for having made a protected disclosure under section 181.932, is subject to a fine not to 126.10exceed $10,000 and imprisonment in the county jail for a period not to exceed one year.126.11    (c) In addition to all other penalties provided by law, any person who intentionally 126.12engages in acts of reprisal, retaliation, threats, coercion, or similar acts against a public 126.13employee or applicant for public employment for having made a protected disclosure shall 126.14be liable in an action for damages brought against the person by the injured party. Punitive 126.15damages may be awarded by the court where the acts of the offending party are proven to 126.16be malicious. Where liability has been established, the injured party shall also be entitled 126.17to reasonable attorney fees as provided by law. However, any action for damages shall not 126.18be available to the injured party unless the injured party has first filed a complaint with the 126.19commissioner of labor and industry under paragraph (a), and the department has issued, or 126.20failed to issue, findings under section 177.275.126.21    (d) This section is not intended to prevent an appointing power, manager, or 126.22supervisor from taking, directing others to take, recommending, or approving any 126.23personnel action or from taking or failing to take a personnel action with respect to any 126.24public employee or applicant for public employment if the appointing power, manager, or 126.25supervisor reasonably believes any action or inaction is justified on the basis of evidence 126.26separate and apart from the fact that the person has made a protected disclosure under 126.27section 181.932.126.28    (e) In any civil action or administrative proceeding, once it has been demonstrated 126.29by a preponderance of evidence that an activity protected by this section and sections 126.301 to 7 was a contributing factor in the alleged retaliation against a former, current, or 126.31prospective employee, the burden of proof shall be on the supervisor, manager, or 126.32appointing power to demonstrate by clear and convincing evidence that the alleged action 126.33would have occurred for legitimate, independent reasons even if the employee had not 126.34engaged in protected disclosures or refused an illegal order. If the supervisor, manager, 126.35or appointing power fails to meet this burden of proof in an adverse action against the 126.36employee in any administrative review, challenge, or adjudication in which retaliation 127.1has been demonstrated to be a contributing factor, the employee shall have a complete 127.2affirmative defense in the adverse action.127.3    (f) Nothing in this section and sections 1 to 7 shall be deemed to diminish the rights, 127.4privileges, or remedies of any employee under any other federal or state law or under any 127.5employment contract or collective bargaining agreement.127.6    Sec. 20. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:127.7    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who, 127.8during some part of the period of the sales representative agreement:127.9    (1) is a resident of Minnesota or maintains that person's principal place of business 127.10in Minnesota; or127.11    (2) whose geographical territory specified in the sales representative agreement 127.12includes part or all of Minnesota.127.13    (b) To be effective, any demand for arbitration under subdivision 5 must be made 127.14in writing and delivered to the principal on or before one year after the effective date of 127.15the termination of the agreement.127.16    (c) A provision in any contract between a sales representative dealing in plumbing 127.17equipment or supplies and a principal purporting to waive any provision of this act, 127.18whether by express waiver or by a provision stipulating that the contract is subject to the 127.19laws of another state, shall be void.127.20    Sec. 21. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:127.21    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by 127.22rule, prescribe minimum standards which shall be uniform, and which standards shall 127.23thereafter be effective for all new plumbing installations, including additions, extensions, 127.24alterations, and replacements connected with any water or sewage disposal system owned 127.25or operated by or for any municipality, institution, factory, office building, hotel, apartment 127.26building, or any other place of business regardless of location or the population of the 127.27city or town in which located. Notwithstanding the provisions of Minnesota Rules, part 127.284715.3130, as they apply to review of plans and specifications, the commissioner may 127.29allow plumbing construction, alteration, or extension to proceed without approval of the 127.30plans or specifications by the commissioner.127.31    Except for powers granted to the Plumbing Board, the commissioner of labor and 127.32industry shall administer the provisions of sections 
         326.37 to 
         326.45 and for such purposes 127.33may employ plumbing inspectors and other assistants.128.1    Sec. 22. [326.372] PLUMBING BOARD.128.2    Subdivision 1.Composition.(a) The Plumbing Board shall consist of 12 voting 128.3members who must be residents of the state, appointed by the governor, and confirmed 128.4by the senate. The commissioner of labor and industry or the commissioner's designee 128.5shall be a voting member. The first appointed board members shall serve an initial term 128.6of four years, except where designated otherwise. The governor shall then reappoint the 128.7current members or appoint replacement members, all or in part, to subsequent three-year 128.8terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 128.9occurring with less than six months time remaining in the term shall be filled for the 128.10existing term and the following three-year term. Of the 11 appointed members, the 128.11composition shall be as follows:128.12    (1) two members shall be municipal plumbing inspectors, one from the seven-county 128.13metro area and one from greater Minnesota;128.14    (2) one member shall be a licensed mechanical engineer;128.15    (3) two members serving an initial term of three years shall be plumbing contractors 128.16or the representative of the contractor, engaged in a commercial scope of plumbing 128.17contracting, one from the metropolitan area and one from greater Minnesota;128.18    (4) two members serving an initial term of three years shall be plumbing contractors 128.19or their representatives, engaged in the residential scope of plumbing contracting, one 128.20from the metro area and one from greater Minnesota; 128.21    (5) two members serving an initial term of two years shall be plumbing 128.22journeypersons engaged in a commercial scope of plumbing systems installation, one 128.23from the metro area and one from greater Minnesota; and128.24    (6) two members serving an initial term of two years shall be plumbing 128.25journeypersons engaged in a residential scope of plumbing systems installation, one from 128.26the metro area and one from greater Minnesota.128.27    (b) Except for the licensed mechanical engineer, all persons appointed to the 128.28council must possess a current Minnesota plumbing license and maintain the license for 128.29the duration of their term.128.30    Subd. 2.Powers.(a) The board shall have the power to:128.31    (1) elect its chair;128.32    (2) specify the plumbing code that must be followed in this state;128.33    (3) maintain a review process to make determinations regarding any complaints, 128.34code amendments, code compliance, and code clarifications filed with the board;128.35    (4) adopt rules necessary for the regulation and licensing of contractors, 128.36journeypersons, apprentices, and other persons engaged in the design, installation, and 129.1alteration of plumbing systems that would include the issuing, renewing, revoking, 129.2refusing to renew, and suspending a plumbing license, except for persons licensed under 129.3sections 326.02 to 326.15;129.4    (5) adopt rules necessary for continuing education for individuals regulated and 129.5licensed under this section; 129.6    (6) make recommendations to the commissioner regarding educational requirements 129.7for plumbing inspectors; and 129.8    (7) pay expenses deemed necessary in the performance of board duties, including: 129.9    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 129.10subdivision 2; and 129.11    (ii) per diem and expenses for its members as provided in section 15.0575, 129.12subdivision 3.129.13    (b) Requests under the review process in paragraph (a), clause (3), may originate 129.14with the municipal inspectors, the plumbing contractors or their employees, and other 129.15persons engaged in the design, installation, and alteration of plumbing systems. The board 129.16shall make its findings known to all parties and the commissioner of labor and industry 129.17within the time period specified by the board.129.18    Subd. 3.Fees and finances.The board shall submit an annual budget to the 129.19commissioner of labor and industry. The commissioner shall collect fees under section 129.20326.42 necessary for the operation and continuance of the board. The commissioner is 129.21responsible for the enforcement of the codes and licensing requirements determined by 129.22the board. The board shall set the fees for licenses and certification under this section. 129.23The commissioner of finance shall make a quarterly certification of the amount necessary 129.24to pay expenses required for operation of the board under subdivision 2, paragraph (a), 129.25clause (6). The certified amount is appropriated to the board for those purposes from 129.26the fees collected under section 326.42.129.27    Sec. 23. Minnesota Statutes 2006, section 326.38, is amended to read:129.28326.38 LOCAL REGULATIONS.129.29    Any city having a system of waterworks or sewerage, or any town in which reside 129.30over 5,000 people exclusive of any statutory cities located therein, or the metropolitan 129.31airports commission, may, by ordinance, adopt local regulations providing for plumbing 129.32permits, bonds, approval of plans, and inspections of plumbing, which regulations are 129.33not in conflict with the plumbing standards on the same subject prescribed by the state 129.34commissioner of health Plumbing Board. No city or such town shall prohibit plumbers 129.35licensed by the state commissioner of healthlabor and industry from engaging in or 130.1working at the business, except cities and statutory cities which, prior to April 21, 1933, 130.2by ordinance required the licensing of plumbers. No city or town may require a license 130.3for persons performing building sewer or water service installation who have completed 130.4pipe laying training as prescribed by the commissioner of labor and industry. Any city 130.5by ordinance may prescribe regulations, reasonable standards, and inspections and grant 130.6permits to any person, firm, or corporation engaged in the business of installing water 130.7softeners, who is not licensed as a master plumber or journeyman plumber by the state 130.8commissioner of health labor and industry, to connect water softening and water filtering 130.9equipment to private residence water distribution systems, where provision has been 130.10previously made therefor and openings left for that purpose or by use of cold water 130.11connections to a domestic water heater; where it is not necessary to rearrange, make any 130.12extension or alteration of, or addition to any pipe, fixture or plumbing connected with 130.13the water system except to connect the water softener, and provided the connections so 130.14made comply with minimum standards prescribed by the state commissioner of health130.15Plumbing Board.130.16    Sec. 24. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:130.17    Subdivision 1. License required; master and journeyman plumbers.In any city 130.18now or hereafter having 5,000 or more population, according to the last federal census, 130.19and having a system of waterworks or sewerage,(a) No person, firm, or corporation shall 130.20engage in or work at the business of a master plumber or, restricted master plumber,130.21journeyman plumber, and restricted journeyman plumber unless licensed to do so by the 130.22state commissioner of healthlabor and industry. A license is not required for persons 130.23performing building sewer or water service installation who have completed pipe laying 130.24training as prescribed by the commissioner of labor and industry. A master plumber may 130.25also work as a journeyman plumber, a restricted journeyman plumber, and a restricted 130.26master plumber. A journeyman plumber may also work as a restricted journeyman 130.27plumber. Anyone not so licensed may do plumbing work which complies with the 130.28provisions of the minimum standard prescribed by the state commissioner of health130.29Plumbing Board on premises or that part of premises owned and actually occupied by the 130.30worker as a residence, unless otherwise forbidden to do so by a local ordinance.130.31    In any such city(b) No person, firm, or corporation shall engage in the business of 130.32installing plumbing nor install plumbing in connection with the dealing in and selling 130.33of plumbing material and supplies unless at all times a licensed master plumber, or in 130.34cities and towns with a population of fewer than 5,000 according to the federal census a 131.1restricted master plumber, who shall be responsible for proper installation, is in charge 131.2of the plumbing work of the person, firm, or corporation.131.3    The Department of HealthPlumbing Board shall prescribe rules, not inconsistent 131.4herewith, for the examination and licensing of plumbers.131.5    Sec. 25. Minnesota Statutes 2006, section 326.401, subdivision 2, is amended to read:131.6    Subd. 2. Journeyman exam. A plumber's apprentice who has completed four years 131.7of practical plumbing experience is eligible to take the journeyman plumbing examination. 131.8Up to 24 months of practical plumbing experience prior to registration as an apprentice 131.9may be applied to the four-year experience requirement. However, none of this practical 131.10plumbing experience may be applied if the person did not have any practical plumbing 131.11experience in the 12-month period immediately prior to registration. The commissioner131.12Plumbing Board may adopt rules to evaluate whether the person's past practical plumbing 131.13experience is applicable in preparing for the journeyman's examination. If two years 131.14after completing the training the person has not taken the examination, the four years 131.15of experience shall be forfeited.131.16    The commissioner may allow an extension of the two-year period for taking the 131.17exam for cases of hardship or other appropriate circumstances.131.18    Sec. 26. [326.402] RESTRICTED PLUMBER LICENSE.131.19    Subdivision 1.Licensure.The commissioner of labor and industry shall grant a 131.20restricted journeyman or master plumber license to an individual if:131.21    (1) the individual completes an application with information required by the 131.22commissioner of labor and industry;131.23    (2) the completed application is accompanied by a fee of $90;131.24    (3) the commissioner of labor and industry receives the completed application and 131.25fee before January 1, 2008;131.26    (4) the completed application demonstrates that the applicant has had at least two 131.27years for a restricted journeyman plumber license or four years for a restricted master 131.28plumber license of practical plumbing experience in the plumbing trade prior to the 131.29application; and131.30    (5) during the entire time for which the applicant is claiming experience in 131.31contracting for plumbing work under clause (4), the applicant was in compliance with all 131.32applicable requirements of section 326.40.132.1    Subd. 2.Use of license.A restricted master plumber and restricted journeyman 132.2plumber may engage in the plumbing trade in all areas of the state except in cities and 132.3towns with a population of more than 5,000 according to the federal census.132.4    Subd. 3.Application period.Applications for restricted master plumber and 132.5restricted journeyman plumber licenses must be submitted to the commissioner prior 132.6to January 1, 2008.132.7    Subd. 4.Renewal; use period for license.A restricted master plumber and 132.8restricted journeyman plumber license must be renewed annually for as long as that 132.9licensee engages in the plumbing trade. Failure to renew a restricted master plumber and 132.10restricted journeyman plumber license within 12 months after the expiration date will 132.11result in permanent forfeiture of the restricted master plumber and restricted journeyman 132.12plumber license.132.13    Subd. 5.Prohibition of transference.A restricted master plumber and restricted 132.14journeyman plumber license may not be transferred or sold to any other person.132.15    Subd. 6.Bond; insurance.A restricted master plumber licensee is subject to the 132.16bond and insurance requirements of section 326.40, subdivision 2, unless the exemption 132.17provided by section 326.40, subdivision 3, applies.132.18    Subd. 7.Fee.The annual fee for the restricted master plumber and restricted 132.19journeyman plumber licenses is the same fee as for a master or journeyman plumber 132.20license, respectively.132.21    Sec. 27. Minnesota Statutes 2006, section 326.405, is amended to read:132.22326.405 RECIPROCITY WITH OTHER STATES.132.23    The commissioner of health may license without examination, upon payment of the 132.24required fee, nonresident applicants who are licensed under the laws of a state having 132.25standards for licensing plumbers which the commissioner determines are substantially 132.26equivalent to the standards of this state if the other state grants similar privileges to 132.27Minnesota residents duly licensed in this state. The commissioner may issue a temporary 132.28license without examination, upon payment of the required fee, nonresident applicants 132.29who are licensed under the laws of a state having standards for licensing which the 132.30commissioner determines are substantially equivalent to the standards of this state if 132.31the other state grants similar privileges to Minnesota residents duly licensed in this 132.32state. Applicants who receive a temporary license under this section may acquire an 132.33aggregate of 24 months of experience before they have to apply and pass the licensing 132.34examination. Applicants must register with the commissioner of labor and industry and 133.1the commissioner shall set a fee for a temporary license. Applicants have five years in 133.2which to comply with this section.133.3    Sec. 28. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:133.4    Subdivision 1. Application. Applications for plumber's license shall be made to the 133.5state commissioner of health labor and industry, with fee. Unless the applicant is entitled 133.6to a renewal, the applicant shall be licensed by the state commissioner of health labor and 133.7industry only after passing a satisfactory examination administered by the examiners133.8commissioner of labor and industry, based upon rules adopted by the Plumbing Board133.9showing fitness. Examination fees for both journeyman and master plumbers shall be in 133.10an amount prescribed by the state commissioner of health labor and industry pursuant to 133.11section 
         144.122. Upon being notified that of having successfully passed the examination 133.12for original license the applicant shall submit an application, with the license fee herein 133.13provided. License fees shall be in an amount prescribed by the state commissioner of 133.14health labor and industry pursuant to section 
         144.122. Licenses shall expire and be 133.15renewed as prescribed by the commissioner pursuant to section 
         144.122. 133.16    Sec. 29. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:133.17    Subd. 2. Regulatory authority; tough person contests. All tough person contests, 133.18including amateur tough person contests, are subject to this chapter. All tough person 133.19contests are subject to American Boxing Commission (ABC) rules. Every contestant 133.20in a tough person contest shall have a physical examination prior to their bouts. Every 133.21contestant in a tough person contest shall wear padded gloves that weigh at least 12 133.22ounces. All tough person bouts are limited to two-minute rounds and a maximum of four 133.23total rounds. Officials at tough person bouts shall be licensed under this chapter.133.24    Sec. 30. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision 133.25to read:133.26    Subd. 3.Regulatory authority; similar sporting events.All mixed martial arts, 133.27ultimate fight contests, and similar sporting events are subject to this chapter.133.28    Sec. 31. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:133.29    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in 133.30the year of its issuance issued after the effective date of this act is valid for one year from 133.31the date it is issued and may be renewed by filing an application for renewal with the 133.32commission and payment of the license fee. An application for a license and renewal of a 134.1license must be on a form provided by the commission. There is a 30-day grace period 134.2during which a license may be renewed if a late filing penalty fee equal to the license fee 134.3is submitted with the regular license fee. A licensee that files late shall not conduct any 134.4activity regulated by this chapter until the commission has renewed the license. If the 134.5licensee fails to apply to the commission within the 30-day grace period, the licensee must 134.6apply for a new license under subdivision 1.134.7    Sec. 32. Minnesota Statutes 2006, section 341.321, is amended to read:134.8341.321 FEE SCHEDULE.134.9    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission 134.10is as follows: 134.11    (1) referees, $35 $45 for each initial license and each renewal; 134.12    (2) promoters, $400 for each initial license and each renewal; 134.13    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal; 134.14    (4) trainers, $35 $45 for each initial license and each renewal; 134.15    (5) ring announcers, $25 $45 for each initial license and each renewal; 134.16    (6) boxers' seconds, $25 $45 for each initial license and each renewal; 134.17    (7) timekeepers, $25 $45 for each initial license and each renewal; and134.18    (8) boxers, $35 $45 for each initial license and each renewal.;134.19    (9) managers, $45 for each initial license and each renewal; and134.20    (10) ringside physicians, $45 for each initial license and each renewal.134.21    (b) The commission shall establish and assess an event fee for each sporting event. 134.22The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as 134.23determined by the commission when the sporting event is scheduled.134.24    (c) All fees collected by the Minnesota Boxing Commission must be deposited in 134.25the Boxing Commission account in the special revenue fund. 134.26    Sec. 33. REPEALER.134.27Minnesota Statutes 2006, section 326.45, is repealed.134.28ARTICLE 9134.29HIGH PRESSURE PIPING134.30    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:134.31326.46 SUPERVISION OF HIGH PRESSURE PIPING.135.1    The Department of Labor and Industry shall supervise all high pressure piping 135.2used on all projects in this state, and may prescribe minimum standards which shall be 135.3uniform under rules adopted by the board.135.4    The department shall employ inspectors and other assistants to carry out the 135.5provisions of sections 
         326.46 to 
         326.52. 135.6    Sec. 2. Minnesota Statutes 2006, section 326.461, is amended by adding a subdivision 135.7to read:135.8    Subd. 1a.Board."Board" means the Board of High Pressure Piping Systems.135.9    Sec. 3. Minnesota Statutes 2006, section 326.47, subdivision 2, is amended to read:135.10    Subd. 2. Permissive municipal regulation. A municipality may, by ordinance, 135.11provide for the inspection of high pressure piping system materials and construction, and 135.12provide that it shall not be constructed or installed except in accordance with minimum 135.13state standards. The authority designated by the ordinance for issuing high pressure piping 135.14permits and assuring compliance with state standards must report to the Department of 135.15Labor and Industry all violations of state high pressure piping standards.135.16    A municipality may not adopt an ordinance with high pressure piping standards that 135.17does not conform to the uniform standards prescribed by the Department of Labor and 135.18Industry board. The Department of Labor and Industry board shall specify by rule the 135.19minimum qualifications for municipal inspectors.135.20    Sec. 4. Minnesota Statutes 2006, section 326.47, subdivision 6, is amended to read:135.21    Subd. 6. Filing and inspection fees. The Department of Labor and Industry 135.22must charge a filing fee set by the commissioner board under section 
         16A.1285 for all 135.23applications for permits to construct or install high pressure piping systems. The fee for 135.24inspection of high pressure piping system construction or installation shall be set by the 135.25commissioner board under section 
         16A.1285. This subdivision does not apply where a 135.26permit is issued by a municipality complying with subdivision 2. 135.27    Sec. 5. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.135.28    Subdivision 1.Composition.(a) The Board of High Pressure Piping Systems shall 135.29consist of 12 members who must be residents of the state, appointed by the governor, and 135.30confirmed by the senate. The commissioner of the Department of Labor and Industry or 135.31the commissioner's designee shall be a voting member. The first appointed board members 135.32shall serve an initial term of four years, except where designated otherwise. The governor 136.1shall then reappoint the current members or appoint replacement members, all or in part, to 136.2subsequent three-year terms. Midterm vacancies shall be filled for the remaining portion 136.3of the term. Vacancies occurring with less than six months time remaining in the term 136.4shall be filled for the existing term and the following three-year term. Of the 11 appointed 136.5members, the composition shall be as follows:136.6    (1) one member shall be a high pressure piping inspector;136.7    (2) one member shall be a licensed mechanical engineer;136.8    (3) one member shall be a representative of the piping industry;136.9    (4) four members shall be high pressure piping contractors or their representatives, 136.10engaged in the scope of high pressure piping, two from the metro area and two from 136.11greater Minnesota;136.12    (5) two members shall be high pressure piping journeypersons engaged in the scope 136.13of high pressure piping systems installation, one from the metro area and one from greater 136.14Minnesota; and136.15    (6) two members shall be representatives from utility companies in Minnesota 136.16who shall serve an initial term of two years.136.17    (b) Except for the licensed mechanical engineer and the members from utilities 136.18companies, all persons appointed to the board must possess a current license or 136.19competency credential required for contractors and persons engaged in the design, 136.20installation, alteration, and inspection of high pressure piping systems.136.21    Subd. 2.Powers.(a) The board shall have the power to:136.22    (1) elect its chair;136.23    (2) specify the high pressure piping code that must be followed in Minnesota;136.24    (3) maintain an appeals committee to make determinations regarding any complaints, 136.25code amendments, code compliance, and code clarifications filed with the board;136.26    (4) adopt rules necessary for the regulation and licensing of contractors, 136.27journeypersons, trainees, and persons engaged in the design, installation, alteration, and 136.28inspection of high pressure piping systems, except for persons licensed under sections 136.29326.02 to 326.15;136.30    (5) adopt rules necessary for continuing education for individuals regulated and 136.31licensed under this section; and136.32    (6) pay expenses deemed necessary in the performance of board duties, including: 136.33    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 136.34subdivision 2; and 136.35    (ii) per diem and expenses for its members as provided in section 15.0575, 136.36subdivision 3.137.1    (b) Complaints filed under this section may originate with high pressure piping 137.2inspectors, contractors, or their employees, or other persons engaged in the design, 137.3installation, and alteration of a high pressure piping system. The board shall make their 137.4findings known to all parties and the commissioner of the Department of Labor and 137.5Industry within the time period specified by the board.137.6    Subd. 3.Fee and finances.The board shall submit an annual budget to the 137.7commissioner of the Department of Labor and Industry. The commissioner shall collect 137.8fees under section 326.47, subdivision 6, necessary for the operation and continuance 137.9of the board. The commissioner is responsible for the enforcement of the codes and 137.10licensing requirements determined by the board. The board shall set the fees for licenses 137.11and certification under this section and for all high pressure piping system permits and 137.12submit the fee structure to the commissioner of labor and industry. The commissioner 137.13of finance shall make a quarterly certification of the amount necessary to pay expenses 137.14required for operation of the board under subdivision 2, paragraph (a), clause (6). The 137.15certified amount is appropriated to the board for those purposes from the fees collected 137.16under section 326.50.137.17    Sec. 6. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:137.18    Subdivision 1. License required; rules; time credit. No person shall engage in 137.19or work at the business of a contracting pipefitter unless issued an individual contracting 137.20pipefitter license to do so by the Department of Labor and Industry under rules prescribed 137.21by the board. No license shall be required for repairs on existing installations. No 137.22person shall engage in or work at the business of journeyman pipefitter unless issued an 137.23individual journeyman pipefitter competency license to do so by the Department of Labor 137.24and Industry under rules prescribed by the board. A person possessing an individual 137.25contracting pipefitter competency license may also work as a journeyman pipefitter.137.26    No person, partnership, firm, or corporation shall install high pressure piping, nor 137.27install high pressure piping in connection with the dealing in and selling of high pressure 137.28pipe material and supplies, unless, at all times, a person possessing a contracting pipefitter 137.29individual competency license or a journeyman pipefitter individual competency license is 137.30responsible for the high pressure pipefitting work conducted by the person, partnership, 137.31firm, or corporation being in conformity with Minnesota Statutes and Minnesota Rules.137.32    The Department of Labor and Industry board shall prescribe rules, not inconsistent 137.33herewith, for the examination and individual competency licensing of contracting 137.34pipefitters and journeyman pipefitters and for issuance of permits by the department and 137.35municipalities for the installation of high pressure piping.138.1    An employee performing the duties of inspector for the Department of Labor and 138.2Industry in regulating pipefitting shall not receive time credit for the inspection duties 138.3when making an application for a license required by this section.138.4    Sec. 7. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:138.5    Subd. 2. High pressure pipefitting business license. Before obtaining a permit 138.6for high pressure piping work, a person, partnership, firm, or corporation must obtain or 138.7utilize a business with a high pressure piping business license.138.8    A person, partnership, firm, or corporation must have at all times as a full-time 138.9employee at least one individual holding an individual contracting pipefitter competency 138.10license. Only full-time employees who hold individual contracting pipefitter licenses 138.11are authorized to obtain high pressure piping permits in the name of the business. The 138.12individual contracting pipefitter competency license holder can be the employee of only 138.13one high pressure piping business at a time.138.14    To retain its business license without reapplication, a person, partnership, firm, or 138.15corporation holding a high pressure piping business license that ceases to employ a person 138.16holding an individual contracting pipefitter competency license shall have 60 days from 138.17the last day of employment of its previous individual contracting pipefitter competency 138.18license holder to employ another license holder. The Department of Labor and Industry 138.19must be notified no later than five days after the last day of employment of the previous 138.20license holder.138.21    No high pressure pipefitting work may be performed during any period when the 138.22high pressure pipefitting business does not have an individual contracting pipefitter 138.23competency license holder on staff. If a license holder is not employed within 60 days, 138.24the pipefitting business license shall lapse.138.25    The Department of Labor and Industry board shall prescribe by rule procedures for 138.26application for and issuance of business licenses and fees.138.27    Sec. 8. Minnesota Statutes 2006, section 326.48, is amended by adding a subdivision 138.28to read:138.29    Subd. 6.Reciprocity with other states.The commissioner may issue a temporary 138.30license without examination, upon payment of the required fee, nonresident applicants 138.31who are licensed under the laws of a state having standards for licensing which the 138.32commissioner determines are substantially equivalent to the standards of this state if 138.33the other state grants similar privileges to Minnesota residents duly licensed in this 138.34state. Applicants who receive a temporary license under this section may acquire an 139.1aggregate of 24 months of experience before they have to apply and pass the licensing 139.2examination. Applicants must register with the commissioner of labor and industry and 139.3the commissioner shall set a fee for a temporary license. Applicants have five years in 139.4which to comply with this section.139.5    Sec. 9. Minnesota Statutes 2006, section 326.50, is amended to read:139.6326.50 APPLICATION; FEES.139.7    Application for an individual contracting pipefitter competency or an individual 139.8journeyman pipefitter competency license shall be made to the Department of Labor and 139.9Industry, with fees. The applicant shall be licensed only after passing an examination139.10administered by the Department of Labor and Industry in accordance with rules adopted 139.11by the board.139.12    Sec. 10. Minnesota Statutes 2006, section 326.51, is amended to read:139.13326.51 DEPARTMENT MAY REVOKE LICENSES.139.14    The department board may revoke or suspend, for cause, any license obtained 139.15through error or fraud, or if the licensee is shown to be incompetent, or for a violation 139.16of any of its rules and regulations applicable to high pressure pipefitting work. The 139.17licensee shall have notice, in writing, enumerating the charges, and be entitled to a hearing 139.18on at least ten days' notice, with the right to produce testimony. The hearing shall be 139.19held pursuant to chapter 14. The commissioner board shall issue a final order based on 139.20testimony and the record at hearing. One year from the date of revocation application 139.21may be made for a new license.139.22    Sec. 11. Minnesota Statutes 2006, section 326.52, is amended to read:139.23326.52 DEPOSIT OF FEES.139.24    All fees received under sections 
         326.46 to 
         326.52 shall be deposited by the 139.25Department of Labor and Industry to the credit of the general fund in the state treasury. 139.26The salaries and per diem of the inspectors and examiners hereinbefore provided, their 139.27expenses, and all incidental expenses of the department and board in carrying out the 139.28provisions of sections 
         326.46 to 
         326.52 shall be paid from the appropriations made to the 139.29Department of Labor and Industry. The commissioner board by rule shall set the amount 139.30of the fees at a level that approximates, to the greatest extent possible, the salaries, per 139.31diem, and incidental expenses of the department.140.1    Sec. 12. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING 140.2SYSTEMS.140.3    The authority of the commissioner of labor and industry to adopt rules relating to 140.4high pressure piping systems is transferred to the Board of High Pressure Piping Systems. 140.5Licenses and permits currently in effect remain in effect according to their terms unless 140.6affected by board action. Rules adopted by the commissioner of labor and industry remain 140.7in effect until amended or repealed by the board. The commissioner of administration 140.8may not use the authority under Minnesota Statutes, section 16B.37, to modify transfers of 140.9authority in this act.140.10    Sec. 13. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH 140.11PRESSURE PIPING SYSTEMS.140.12    The governor must complete the appointments required by Minnesota Statutes, 140.13section 326.471, no later than July 1, 2007. The commissioner of labor and industry 140.14shall convene the first meeting of the Board of High Pressure Piping Systems no later 140.15than September 1, 2007.140.16    Sec. 14. TRANSFER OF AUTHORITY; PLUMBING BOARD.140.17    The authority of the commissioners of health and labor and industry to adopt rules 140.18relating to plumbers is transferred to the Plumbing Board. Licenses and permits currently 140.19in effect remain in effect according to their terms unless affected by board action. Rules 140.20adopted by the commissioner of health or labor and industry remain in effect until amended 140.21or repealed by the board. The commissioner of administration may not use the authority 140.22under Minnesota Statutes, section 16B.37, to modify the transfers of authority in this act.140.23    Sec. 15. FIRST MEETING; APPOINTMENTS FOR PLUMBING BOARD.140.24    The governor must complete the appointments required by Minnesota Statutes, 140.25section 326.372, no later than July 1, 2007. The commissioner of labor and industry shall 140.26convene the first meeting of the Plumbing Board no later than September 1, 2007.140.27ARTICLE 10140.28IRON RANGE RESOURCES AND REHABILITATION BOARD140.29    Section 1. [270.99] HOCKEY HERITAGE SURCHARGE.140.30    Subdivision 1.Imposition.A surcharge of 25 cents is imposed on the sale of every 140.31ticket to an NCAA Division I men's hockey event in the state.141.1    Subd. 2.Collection; remittance.The surcharge imposed in this section shall be 141.2collected by all sellers of these tickets with nexus in the state of Minnesota. The seller 141.3shall report the surcharge on a return proscribed by the commissioner of revenue and 141.4shall remit the surcharge with the return.141.5    Subd. 3.Administration.Unless specifically provided otherwise in this section, the 141.6audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and 141.7administrative provisions in this chapter and chapter 289A that are applicable to taxes 141.8imposed under chapter 297A apply to the surcharge imposed under this section.141.9    Subd. 4.Deposit of revenues.The commissioner of revenue shall deposit all 141.10revenues, including penalty and interest, derived from the surcharge imposed in this 141.11section in the hockey surcharge account in the special revenue fund. The amount deposited 141.12under this section is appropriated to the Iron Range Resources and Rehabilitation Board 141.13for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame 141.14Museum provided that it continues to operate in the city. Payments under this section for 141.15the Hockey Hall of Fame Museum are in addition to and must not be used to supplant 141.16funding under section 298.28, subdivision 9c.141.17    Sec. 2. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:141.18    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby 141.19created the Iron Range Resources and Rehabilitation Board, consisting of 13ten members, 141.20five of whom are state senators appointed by the Subcommittee on Committees of the 141.21Rules Committee of the senate, and five of whom are representatives, appointed by the 141.22speaker of the house of representatives. The remaining members shall be appointed one 141.23each by the senate majority leader, the speaker of the house of representatives, and the 141.24governor and must be nonlegislators who reside in a taconite assistance area as defined in 141.25section 273.1341. The members shall be appointed in January of every odd-numbered 141.26year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and 141.27shall serve until January of the next odd-numbered year. Vacancies on the board shall be 141.28filled in the same manner as the original members were chosen. At least a majority of 141.29the legislative members of the board shall be elected from state senatorial or legislative 141.30districts in which over 50 percent of the residents reside within a taconite assistance area 141.31as defined in section 
         273.1341. All expenditures and projects made by the commissioner 141.32of Iron Range resources and rehabilitation shall be consistent with the priorities 141.33established in subdivision 8 and shall first be submitted to the Iron Range Resources and 141.34Rehabilitation Board for approval by a majority of the board of expenditures and projects 141.35for rehabilitation purposes as provided by this section, and the method, manner, and time 142.1of payment of all funds proposed to be disbursed shall be first approved or disapproved by 142.2the board. The board shall biennially make its report to the governor and the legislature on 142.3or before November 15 of each even-numbered year. The expenses of the board shall be 142.4paid by the state from the funds raised pursuant to this section. 142.5    Sec. 3. Minnesota Statutes 2006, section 298.227, is amended to read:142.6298.227 TACONITE ECONOMIC DEVELOPMENT FUND.142.7    An amount equal to that distributed pursuant to each taconite producer's taxable 142.8production and qualifying sales under section 
         298.28, subdivision 9a, shall be held by 142.9the Iron Range Resources and Rehabilitation Board in a separate taconite economic 142.10development fund for each taconite and direct reduced ore producer. Money from the 142.11fund for each producer shall be released by the commissioner after review by a joint 142.12committee consisting of an equal number of representatives of the salaried employees and 142.13the nonsalaried production and maintenance employees of that producer. The District 11 142.14director of the United States Steelworkers of America, on advice of each local employee 142.15president, shall select the employee members. In nonorganized operations, the employee 142.16committee shall be elected by the nonsalaried production and maintenance employees. 142.17The review must be completed no later than six months after the producer presents a 142.18proposal for expenditure of the funds to the committee. The funds held pursuant to this 142.19section may be released only for acquisition of plant and stationary mining equipment 142.20and facilities for the producer or for research and development in Minnesota on new 142.21mining, or taconite, iron, or steel production technology, but only if the producer provides 142.22a matching expenditure to be used for the same purpose of at least 50 percent of the 142.23distribution based on 
         14.7 cents per ton beginning with distributions in 2002. Effective for 142.24proposals for expenditures of money from the fund approved beginning the day following 142.25final enactment, the commissioner may release the funds only if the proposed expenditure 142.26is approved by a majority of the members of the Iron Range Resources and Rehabilitation 142.27Board. If a producer uses money which has been released from the fund prior to the day 142.28following final enactment to procure haulage trucks, mobile equipment, or mining shovels, 142.29and the producer removes the piece of equipment from the taconite tax relief area defined 142.30in section 
         273.134 within ten years from the date of receipt of the money from the fund, 142.31a portion of the money granted from the fund must be repaid to the taconite economic 142.32development fund. The portion of the money to be repaid is 100 percent of the grant if the 142.33equipment is removed from the taconite tax relief area within 12 months after receipt of 142.34the money from the fund, declining by ten percent for each of the subsequent nine years 142.35during which the equipment remains within the taconite tax relief area. If a taconite 143.1production facility is sold after operations at the facility had ceased, any money remaining 143.2in the fund for the former producer may be released to the purchaser of the facility on 143.3the terms otherwise applicable to the former producer under this section. If a producer 143.4fails to provide matching funds for a proposed expenditure within six months after the 143.5commissioner approves release of the funds, the funds are available for release to another 143.6producer in proportion to the distribution provided and under the conditions of this section. 143.7Any portion of the fund which is not released by the commissioner within two years of its 143.8deposit in the fund shall be divided between the taconite environmental protection fund 143.9created in section 
         298.223 and the Douglas J. Johnson economic protection trust fund 143.10created in section 
         298.292 for placement in their respective special accounts. Two-thirds 143.11of the unreleased funds shall be distributed to the taconite environmental protection fund 143.12and one-third to the Douglas J. Johnson economic protection trust fund. 143.13EFFECTIVE DATE.This section is effective for proposals for expenditures of 143.14money from the fund the day following final enactment.143.15    Sec. 4. APPROPRIATION; IRON RANGE RESOURCES AND 143.16REHABILITATION BOARD.143.17    $500,000 is appropriated from the Iron Range Resources and Rehabilitation Board 143.18fund for fiscal year 2008 for allocation in this section:143.19    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other 143.20infrastructure to a peat project in Spencer Township in Aitkin County;143.21    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham 143.22Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent 143.23endowment for the preservation;143.24    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the 143.25organization to employ youth for the construction of community centers; and143.26    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field 143.27construction.143.28    These are onetime appropriations.143.29    Sec. 5. IRRRB BUILDING.143.30    The Iron Range Resources and Rehabilitation Board office building in Eveleth, 143.31Minnesota is designated and named the Joe Begich Building and shall be signed as such 143.32at every entrance.144.1ARTICLE 11144.2ELECTRICAL144.3    Section 1. Minnesota Statutes 2006, section 326.01, subdivision 6g, is amended to read:144.4    Subd. 6g. Personal direct supervision.The term "personal "Direct supervision" 144.5means that a person licensed to perform electrical work oversees and directs the electrical 144.6work performed by an unlicensed person such that:144.7    (1) the licensed person actually reviews the electrical work performed by the 144.8unlicensed person an unlicensed individual is being supervised by an individual licensed 144.9to perform the electrical work being supervised;144.10    (2) during the entire working day of the unlicensed individual, the licensed 144.11individual is physically present at the location where the unlicensed individual is 144.12preforming electrical work and immediately available to the unlicensed individual;144.13    (3) the licensed person individual is physically present and immediately available to 144.14the unlicensed person individual at all times for assistance and direction; and144.15    (4) electronic supervision does not meet the requirement of physically present and 144.16immediately available;144.17    (5) the licensed individual shall review the electrical work performed by the 144.18unlicensed individual before the electrical work is operated; and144.19    (3) (6) the licensed person individual is able to and does determine that all electrical 144.20work performed by the unlicensed person individual is performed in compliance with 144.21section 
         326.243. 144.22    The licensed person individual is responsible for the compliance with section 144.23326.243
          of all electrical work performed by the unlicensed person individual. 144.24    Sec. 2. Minnesota Statutes 2006, section 326.241, subdivision 1, is amended to read:144.25    Subdivision 1. Composition.(a) The Board of Electricity shall consist of 11 12144.26members, residents of the state, appointed by the governor of whom and confirmed by 144.27the senate. The commissioner of labor and industry or the commissioner's designee shall 144.28be a nonvoting member. The first appointed board members shall serve an initial term 144.29of four years, except where designated otherwise. The governor shall then reappoint the 144.30current members or appoint replacement members, all or in part, to subsequent three-year 144.31terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 144.32occurring with less than six months time remaining in the term shall be filled for the 144.33existing term and the following three-year term. Of the 11 appointed members, the 144.34composition shall be as follows:145.1    (1) two shall be representatives of the electrical suppliers in the rural areas of the 145.2state,145.3    (2) two shall be master electricians, who shall be contractors,145.4    (3) two journeyman electricians,145.5    (4) one registered consulting electrical engineer,145.6    (5) two power limited technicians, who shall be technology system contractors 145.7primarily engaged in the business of installing technology circuits or systems, and145.8    (6) two public members as defined by section 
         214.02.145.9    (b) Except as provided herein, membership terms, compensation of members, 145.10removal of members, the filling of membership vacancies, and fiscal year and reporting 145.11requirements shall be as provided in sections 
         214.07 to 
         214.09. The provision of staff, 145.12administrative services and office space; the review and processing of complaints; the 145.13setting of board fees; and other provisions relating to board operations shall be as provided 145.14in chapter 214. 145.15    Sec. 3. Minnesota Statutes 2006, section 326.241, subdivision 2, is amended to read:145.16    Subd. 2. Powers.(a) The board, or the complaint committee on behalf of the board 145.17where authorized by law, shall have power to:145.18    (1) Elect its own officers.145.19    (2) Engage and fix the compensation of inspectors, and hire employees. The salary 145.20of the executive secretary shall be established pursuant to chapter 43A. All agents and 145.21employees other than contract inspectors shall be in the classified service and shall be 145.22compensated pursuant to chapter 43A. All inspectors shall hold licenses as master or 145.23journeyman electricians under section 326.242, subdivision 1(1) or 2(1), and shall give 145.24bond in an amount fixed by the board, conditioned upon the faithful performance of 145.25their duties.145.26    (3) (2) Pay such other expenses as it may deem necessary in the performance of its 145.27duties, including rent, supplies, and such like.145.28    (3) Select from its members individuals to serve on any other state advisory councils, 145.29boards, or committees.145.30    (4) Enforce the provisions of sections 
         326.241 to 
         326.248, and provide, upon 145.31request, such additional voluntary inspections and reviews as it may deem appropriate. 145.32    (5) Issue, renew, refuse to renew, suspend, temporarily suspend, and revoke licenses, 145.33censure licensees, assess civil penalties, issue cease and desist orders, and seek injunctive 145.34relief and civil penalties in court as authorized by section 326.242 and other provisions of 146.1Minnesota law. Establish the committees required herein and any others deemed necessary 146.2by the board or requested by the commissioner.146.3    (6) Adopt reasonable rules to carry out its duties under sections 
         326.241 to 
         326.248146.4and to provide for the amount and collection of fees for inspection and other services. All 146.5rules shall be adopted in accordance with chapter 14. 146.6    (7) Advise the commissioner on issues related to sections 326.241 to 326.248 or as 146.7requested by the commissioner.146.8    (b) Except for the powers granted to the Electricity Board the commissioner of labor 146.9and industry shall administer the provisions of sections 326.241 to 326.248 and for such 146.10purposes may employ electrical inspectors and other assistants.146.11    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:146.12    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual 146.13means an individual who has not been licensed by the Board of Electricity as a Class A 146.14master electrician or as a Class A journeyman electrician. An unlicensed individual shall 146.15not perform electrical work required to be performed by a licensed individual unless the 146.16individual has first registered with the Board of Electricity as an unlicensed individual. 146.17Thereafter, an unlicensed individual shall not perform electrical work required to be 146.18performed by a licensed individual unless the work is performed under the personal direct146.19supervision of a person an individual actually licensed to perform such work and. The 146.20licensed electrician individual and unlicensed persons are individual must be employed 146.21by the same employer. Licensed persons individuals shall not permit unlicensed persons146.22individuals to perform electrical work except under the personal direct supervision of 146.23a person an individual actually licensed to perform such work. Unlicensed persons146.24individuals shall not supervise the performance of electrical work or make assignments 146.25of electrical work to unlicensed persons individuals. Except for technology circuit or 146.26system work, licensed persons individuals shall supervise no more than two unlicensed 146.27persons individuals. For technology circuit or system work, licensed persons individuals146.28shall supervise no more than three unlicensed persons individuals.146.29    (b) Notwithstanding any other provision of this section, no person individual other 146.30than a master electrician or power limited technician shall plan or lay out electrical wiring, 146.31apparatus, or equipment for light, heat, power, or other purposes, except circuits or 146.32systems exempted from personal licensing by subdivision 12, paragraph (b).146.33    (c) Contractors employing unlicensed persons performing individuals to perform146.34electrical work shall maintain records establishing compliance with this subdivision, 146.35which that shall designate identify all unlicensed persons individuals performing electrical 147.1work, except for persons working on circuits or systems exempted from personal licensing 147.2by subdivision 12, paragraph (b), and shall permit the board to examine and copy all such 147.3records as provided for in section 
         326.244, subdivision 6. 147.4    (d) When a licensed individual supervises the electrical work of an unlicensed 147.5individual, the licensed individual is responsible for ensuring that the electrical work 147.6complies with sections 326.241 to 326.248 and rules adopted.147.7    Sec. 5. Minnesota Statutes 2006, section 326.242, is amended by adding a subdivision 147.8to read:147.9    Subd. 5a.Registration of unlicensed individuals.Unlicensed individuals 147.10performing electrical work for a contractor or employer shall register with the department 147.11in the manner prescribed by the commissioner. Experience credit for electrical work 147.12performed after January 1, 2008, by an applicant for a license identified in this section 147.13shall not be granted where the applicant has not registered with or is not licensed by 147.14the department.147.15    Sec. 6. Minnesota Statutes 2006, section 326.242, subdivision 11, is amended to read:147.16    Subd. 11. Reciprocity.To the extent that any other state which provides for the 147.17licensing of electricians provides for similar action the board may grant licenses, without 147.18examination, of the same grade and class to an electrician who has been licensed by such 147.19other state for at least one year, upon payment by the applicant of the required fee and 147.20upon the board being furnished with proof that the required fee and upon the board being 147.21furnished with proof that the qualifications of the applicant are equal to the qualifications 147.22of holders of similar licenses in Minnesota. The commissioner may enter into reciprocity 147.23agreements for personal licenses with another state if approved by the board. Once 147.24approved by the board, the commissioner may issue a personal license without requiring 147.25the applicant to pass an examination provided the applicant:147.26    (a) submits an application under section 326.242;147.27    (b) pays the fee required under section 326.242; and147.28    (c) holds a valid comparable license in the state participating in the agreement.147.29    Agreements are subject to the following:147.30    (1) The parties to the agreement must administer a statewide licensing program that 147.31includes examination and qualifying experience or training comparable to Minnesota's.147.32    (2) The experience and training requirements under which an individual applicant 147.33qualified for examination in the qualifying state must be deemed equal to or greater than 148.1required for an applicant making application in Minnesota at the time the applicant 148.2acquired the license in the qualifying state.148.3    (3) The applicant must have acquired the license in the qualifying state through an 148.4examination deemed equivalent to the same class of license examination in Minnesota. 148.5A lesser class of license may be granted where the applicant has acquired a greater 148.6class of license in the qualifying state and the applicant otherwise meets the conditions 148.7of this subdivision.148.8    (4) At the time of application, the applicant must hold a valid license in the 148.9qualifying state and have held the license continuously for at least one year before making 148.10application in Minnesota.148.11    (5) An applicant is not eligible for a license under this subdivision if the applicant 148.12has failed the same or greater class of license examination in Minnesota, or if the 148.13applicant's license of the same or greater class has been revoked or suspended.148.14    (6) An applicant who has failed to renew a personal license for two years or more 148.15after its expiration is not eligible for a license under this subdivision.148.16    Sec. 7. REPEALER.148.17Minnesota Statutes 2006, sections 326.01, subdivision 4; and 326.242, subdivision 148.184, are repealed.148.19EFFECTIVE DATE.This section is effective the day following final enactment.148.20ARTICLE 12148.21APPRENTICESHIP BOARD148.22    Section 1. Minnesota Statutes 2006, section 178.01, is amended to read:148.23178.01 PURPOSES.148.24    The purposes of this chapter are: to open to young people regardless of race, sex, 148.25creed, color or national origin, the opportunity to obtain training that will equip them for 148.26profitable employment and citizenship; to establish as a means to this end, a program 148.27of voluntary apprenticeship under approved apprentice agreements providing facilities 148.28for their training and guidance in the arts, skills, and crafts of industry and trade, with 148.29concurrent, supplementary instruction in related subjects; to promote employment 148.30opportunities under conditions providing adequate training and reasonable earnings; 148.31to relate the supply of skilled workers to employment demands; to establish standards 148.32for apprentice training; to establish an Apprenticeship Advisory Council Board and 148.33apprenticeship committees to assist in effectuating the purposes of this chapter; to provide 149.1for a Division of Labor Standards and Apprenticeship within the Department of Labor 149.2and Industry; to provide for reports to the legislature regarding the status of apprentice 149.3training in the state; to establish a procedure for the determination of apprentice agreement 149.4controversies; and to accomplish related ends.149.5    Sec. 2. Minnesota Statutes 2006, section 178.02, is amended to read:149.6178.02 APPRENTICESHIP ADVISORY COUNCIL BOARD.149.7    Subdivision 1. Members. The commissioner of labor and industry, hereinafter 149.8called the commissioner, shall appoint an Apprenticeship Advisory Council Board, 149.9hereinafter referred to as the council board, composed of three representatives each from 149.10employer and employee organizations, and two representatives of the general public. The 149.11director of education responsible for career and technical education or designee shall be an 149.12ex officio member of the council board and shall serve in an advisory capacity only.149.13    Subd. 2. Terms. The council board shall expire and the terms, compensation, and 149.14removal of appointed members shall be as provided in section 
         15.059, except that the 149.15council shall not expire before June 30, 2003. 149.16    Subd. 4. Duties. The council board shall meet at the call of the commissioner. It 149.17shall propose occupational classifications for apprenticeship programs; propose minimum 149.18standards for apprenticeship programs and agreements; and advise on the establishment 149.19of such policies, procedures, and rules as the commissionerboard deems necessary in 149.20implementing the intent of this chapter.149.21    Sec. 3. Minnesota Statutes 2006, section 178.03, subdivision 3, is amended to read:149.22    Subd. 3. Duties and functions. The director, under the supervision of the 149.23commissioner, and with the advice and oversight of the Apprenticeship Advisory 149.24Council Board, is authorized: to administer the provisions of this chapter; to promote 149.25apprenticeship and other forms of on the job training; to establish, in cooperation and 149.26consultation with the Apprenticeship Advisory Council Board and with the apprenticeship 149.27committees, conditions and training standards for the approval of apprenticeship programs 149.28and agreements, which conditions and standards shall in no case be lower than those 149.29prescribed by this chapter; to promote equal employment opportunity in apprenticeship 149.30and other on the job training and to establish a Minnesota plan for equal employment 149.31opportunity in apprenticeship which shall be consistent with standards established 149.32under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of 149.33registration to sponsors of approved apprenticeship programs; to act as secretary of the 149.34Apprenticeship Advisory Council Board; to approve, if of the opinion that approval is 150.1for the best interest of the apprentice, any apprenticeship agreement which meets the 150.2standards established hereunder; to terminate any apprenticeship agreement in accordance 150.3with the provisions of such agreement; to keep a record of apprenticeship agreements and 150.4their disposition; to issue certificates of completion of apprenticeship; and to perform 150.5such other duties as the commissioner deems necessary to carry out the intent of this 150.6chapter; provided, that the administration and supervision of supplementary instruction in 150.7related subjects for apprentices; coordination of instruction on a concurrent basis with 150.8job experiences, and the selection and training of teachers and coordinators for such 150.9instruction shall be the function of state and local boards responsible for vocational 150.10education. The director shall have the authority to make wage determinations applicable 150.11to the graduated schedule of wages and journeyman wage rate for apprenticeship 150.12agreements, giving consideration to the existing wage rates prevailing throughout the 150.13state, except that no wage determination by the director shall alter an existing wage 150.14provision for apprentices or journeymen that is contained in a bargaining agreement in 150.15effect between an employer and an organization of employees, nor shall the director 150.16make any determination for the beginning rate for an apprentice that is below the wage 150.17minimum established by federal or state law.150.18    Sec. 4. Minnesota Statutes 2006, section 178.041, subdivision 1, is amended to read:150.19    Subdivision 1. Rules. The commissioner may, upon receipt of the council's board's150.20proposals, accept, adopt, and issue them by rule with any modifications or amendments 150.21the commissioner finds appropriate. The commissioner may refer them back to the 150.22council board with recommendations for further study, consideration and revision. If 150.23the commissioner refuses to accept, adopt, and issue by rule or other appropriate action 150.24a board proposal, the commissioner must provide a written explanation of the reason 150.25for the refusal to the board within 30 days after the board submitted the proposal to the 150.26commissioner. Additional rules may be issued as the commissioner may deem necessary.