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 1.4Office of Higher Education provisions, establishing new grant and loan 1.5repayment programs; amending higher education programs; amending certain 1.6grant programs; amending certain higher education provisions; eliminating 1.7obsolete references, making technical changes; authorizing control of certain 1.8decreasing students' share of attendance; establishing a college readiness 1.9assessment; increasing revenue bond limits; authorizing control of certain 1.10deposits; authorizing lease agreements; authorizing interest rate swap; providing 1.11for the Textbook Disclosure, Pricing and Access Act; amending certain private 1.12postsecondary institution provisions; appropriating money for jobs and economic 1.13development; amending certain Department of Employment and Economic 1.14Development and the Department of Labor and Industry programs and creating 1.15new programs and grants; establishing the Packinghouse Workers Bill of Rights; 1.16providing for civil actions; providing civil penalties; establishing criminal 1.17penalties; requiring reports; authorizing the increase of certain fees; requiring 1.18assignment of certain inspectors to certain locations; regulating licenses and 1.19wages; requiring certain curriculum for hair braiding at accredited schools; 1.20amending certain licensing provisions; appropriating money for Iron Range 1.21Resources and Rehabilitation Board fund; making certain policy changes 1.22related to Iron Range Resources and Rehabilitation Board; establishing certain 1.23boards; amending certain board provisions;amending Minnesota Statutes 2006, 1.24sections 13.322, subdivision 3; 16B.70, by adding a subdivision; 41D.01, 1.25subdivision 1; 116J.401, by adding a subdivision; 116J.551, subdivision 1; 1.26116J.554, subdivision 2; 116J.555, subdivision 1; 116J.575, subdivisions 1, 1a; 1.27116J.966, subdivision 1; 116L.01, by adding a subdivision; 116L.04, subdivision 1.281a; 116L.17, subdivision 1; 116L.20, subdivision 1; 116M.18, subdivision 1.296a; 120B.023, subdivision 2; 120B.024; 135A.031, subdivision 7; 135A.053, 1.30subdivision 2; 135A.14, subdivision 1; 135A.51, subdivision 2; 135A.52, 1.31subdivisions 1, 2; 136A.01, subdivision 2; 136A.031, subdivision 5; 136A.0411; 1.32136A.08, subdivision 7; 136A.101, subdivision 4; 136A.121, subdivision 5; 1.33136A.125, subdivision 2; 136A.15, subdivisions 1, 6; 136A.233, subdivision 3; 1.34136A.29, subdivision 9; 136A.61; 136A.62, subdivision 3; 136A.63; 136A.64; 1.35136A.65; 136A.653; 136A.657; 136A.66; 136A.67; 136A.68; 136A.69; 1.36136A.71; 136A.861, subdivisions 1, 2, 3, 6; 136F.02, subdivision 1; 136F.42, 1.37subdivision 1; 136F.71, subdivision 2, by adding a subdivision; 136G.11, 1.38subdivision 5; 141.21, subdivisions 1a, 5; 141.25, subdivisions 1, 5, 7, 9, 10, 12; 1.39141.255, subdivision 2; 141.265, subdivision 2; 141.271, subdivisions 10, 12; 2.1141.28, subdivision 1; 141.32; 141.35; 177.27, subdivisions 1, 4, 5, 8, 9, 10, by 2.2adding a subdivision; 177.28, subdivision 1; 177.30; 177.43, subdivisions 3, 4, 2.36, by adding a subdivision; 178.01; 178.02; 178.03, subdivision 3; 178.041, 2.4subdivision 1; 181.78, by adding a subdivision; 181.932, subdivision 1; 181.935; 2.5182.65, subdivision 2; 268.085, subdivision 3; 268.196, by adding a subdivision; 2.6268A.01, subdivision 13, by adding a subdivision; 268A.085, subdivision 1; 2.7268A.15, by adding a subdivision; 298.22, subdivision 2; 298.227; 325E.37, 2.8subdivision 6; 326.01, subdivision 6g; 326.241, subdivisions 1, 2; 326.242, 2.9subdivisions 5, 11, by adding a subdivision; 326.37, subdivision 1; 326.38; 2.10326.40, subdivision 1; 326.401, subdivision 2; 326.405; 326.42, subdivision 1; 2.11326.46; 326.461, by adding a subdivision; 326.47, subdivisions 2, 6; 326.48, 2.12subdivisions 1, 2, by adding a subdivision; 326.50; 326.51; 326.52; 341.28, 2.13subdivision 2, by adding a subdivision; 341.32, subdivision 2; 341.321; 462.39, 2.14by adding a subdivision; proposing coding for new law in Minnesota Statutes, 2.15chapters 116J; 116O; 135A; 136A; 136F; 141; 154; 177; 179; 181; 181A; 182; 2.16197; 270; 326; repealing Minnesota Statutes 2006, sections 16C.18, subdivision 2.172; 135A.031, subdivisions 1, 2, 3, 4, 5, 6; 135A.032; 135A.033; 136A.07; 2.18136A.08, subdivision 8; 137.0245; 137.0246; 326.01, subdivision 4; 326.242, 2.19subdivision 4; 326.45.2.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.21ARTICLE 12.22HIGHER EDUCATION APPROPRIATIONS

2.23Section 1. SUMMARY OF APPROPRIATIONS.

2.24    The amounts shown in this section summarize direct appropriations, by fund, made 2.25in this article.

2.2620082009Total2.27General$ 1,561,498,000$ 1,644,178,000$3,205,676,0002.28Health Care Access2,157,0002,157,0004,314,0002.29Total$ 1,563,655,000$ 1,646,335,000$3,209,990,000

2.30Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

2.31    The sums shown in the columns marked "Appropriations" are appropriated to the 2.32agencies and for the purposes specified in this article. The appropriations are from the 2.33general fund, or another named fund, and are available for the fiscal years indicated 2.34for each purpose. The figures "2008" and "2009" used in this article mean that the 2.35appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.36June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.37year 2009. "The biennium" is fiscal years 2008 and 2009.

2.38APPROPRIATIONS2.39Available for the Year2.40Ending June 302.4120082009

3.13.2Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

3.3Subdivision 1.Total Appropriation$ 197,983,000$198,654,000

3.4The amounts that may be spent for each 3.5purpose are specified in the following 3.6subdivisions.

3.7Subd. 2.Minnesota GI Bill10,000,00010,000,000

3.8For grants to eligible veterans or the eligible 3.9spouses and children of veterans as provided 3.10under Minnesota Statutes, section 197.791.3.11Of this appropriation, $152,000 the first 3.12year and $104,000 the second year are for 3.13the administrative costs of operating this 3.14program. For the 2010-2011 biennium, 3.15the base for this program's administrative 3.16costs must be included within the agency 3.17administration program activity.

3.18Subd. 3.State Grants150,154,000151,124,000

3.19If the appropriation in this subdivision for 3.20either year is insufficient, the appropriation 3.21for the other year is available for it.3.22For the biennium, the tuition maximum for 3.23students in four-year programs is $9,957 in 3.24each year for students in four-year programs, 3.25and for students in two-year programs, is 3.26$4,717 in the first year and $4,859 in the 3.27second year.3.28This appropriation sets the living and 3.29miscellaneous expense allowance at $6,241 3.30each year.

3.31Subd. 4.Safety Officers Survivors100,000100,000

3.32This appropriation is to provide educational 3.33benefits under Minnesota Statutes, section 4.1299A.45, to dependent children under age 23 4.2and to the spouses of public safety officers 4.3killed in the line of duty.4.4If the appropriation in this subdivision for 4.5either year is insufficient, the appropriation 4.6for the other year is available for it.

4.7Subd. 5.Interstate Tuition Reciprocity2,000,0002,000,000

4.8If the appropriation in this subdivision for 4.9either year is insufficient, the appropriation 4.10for the other year is available to meet 4.11reciprocity contract obligations.

4.12Subd. 6.State Work Study12,444,00012,444,000

4.13Subd. 7.Child Care Grants4,934,0004,934,000

4.14Subd. 8.Minitex5,881,0005,881,000

4.15Subd. 9.MnLINK Gateway400,000400,000

4.16Subd. 10.Learning Network of Minnesota4,800,0004,800,000

4.17Subd. 11.Minnesota College Savings Plan1,020,0001,020,000

4.18Subd. 12.Midwest Higher Education Compact90,00090,000

4.19Subd. 13.Other Small Programs2,010,0001,670,000

4.20This appropriation includes funding for 4.21postsecondary service learning, student and 4.22parent information, get ready, outreach, and 4.23intervention for college attendance programs.4.24$265,000 each year is for grants to increase 4.25campus-community collaboration and service 4.26learning statewide, including operations of 4.27the Minnesota campus compact, grants to 4.28member institutions and grants for member 4.29institution initiatives. For every $1 in state 4.30funding, grant recipients must contribute $2 4.31in campus or community-based support.5.1$100,000 each year is for a grant to the 5.2Loan Repayment Assistance Program 5.3of Minnesota, Inc. for loan repayment 5.4assistance awards.5.5$500,000 each year is for the teacher 5.6education and compensation helps (TEACH) 5.7and the Minnesota early childhood teacher 5.8retention programs in Minnesota Statutes, 5.9section 136A.126. This is a onetime 5.10appropriation.5.11$250,000 in the first year is for a grant to 5.12Augsburg College for the purpose of its 5.13Step UP program to provide educational 5.14opportunities to chemically dependent 5.15students and to work with other public 5.16and private colleges in Minnesota to help 5.17replicate this program. This is a onetime 5.18appropriation.5.19$50,000 in the first year is for the speech 5.20pathologist loan forgiveness program for 5.21deposit in the account under Minnesota 5.22Statutes, section 136A.1704.5.23$40,000 in the first year is for a grant to 5.24the Washington Center for Internships and 5.25Academic Seminars for a pilot program 5.26for scholarships for students enrolling in a 5.27Minnesota four-year college or university 5.28beginning in the fall semester of 2007. The 5.29grant is available only with a dollar-for-dollar 5.30match from nonstate sources.

5.315.325.33Subd. 14.Access to College and Helping Individuals Everywhere Value Education and Rural Pilot Programs1,000,0001,000,000

5.34For Access to College and Helping 5.35Individuals Everywhere Value Education 6.1pilot projects that provide distance-learning 6.2opportunities through the Minnesota State 6.3Colleges and Universities for high school 6.4students living in remote and underserved 6.5areas where the school district lacks 6.6the resources to provide academically 6.7challenging educational opportunities, 6.8including Advanced Placement and 6.9International Baccalaureate programs. 6.10Students who successfully complete a course 6.11must receive college credit at no cost to the 6.12student or the participating school district. 6.13The office must report to the committees of 6.14the legislature with responsibility for higher 6.15education finance by January 15, 2009, on the 6.16program outcomes with recommendations on 6.17continuing and expanding the program.

6.186.19Subd. 15.United Family Medicine Residency Program360,000360,000

6.20For a grant to the united family medicine 6.21residency program. This appropriation 6.22must be used to support up to 18 resident 6.23physicians each year in family practice at 6.24united family medicine residency programs 6.25and must prepare doctors to practice family 6.26care medicine in underserved rural and 6.27urban areas of the state. The legislature 6.28intends this program to improve health 6.29care in underserved communities, provide 6.30affordable access to appropriate medical 6.31care, and manage the treatment of patients in 6.32a more cost-effective manner.

6.33Subd. 16.Agency Administration2,690,0002,731,000

6.34Of this appropriation, $39,000 the first 6.35year and $80,000 the second year are for 7.1compensation-related costs associated with 7.2the delivery of the office's services and 7.3programs.

7.4Subd. 17.Balances Forward

7.5A balance in the first year under this section 7.6does not cancel, but is available for the 7.7second year.

7.8Subd. 18.Transfers

7.9The Minnesota Office of Higher Education 7.10may transfer unencumbered balances from 7.11the appropriations in subdivisions 2 to 15 to 7.12the state grant appropriation, the safety officer 7.13survivors appropriation, the interstate tuition 7.14reciprocity appropriation, the Minnesota 7.15college savings plan appropriation, the child 7.16care appropriation, and the state work study 7.17appropriation.

7.18Subd. 19.Reporting

7.19(a) By November 1 and February 15, the 7.20Minnesota Office of Higher Education 7.21must provide updated state grant spending 7.22projections, taking into account the most 7.23current and projected enrollment and tuition 7.24and fee information, economic conditions, 7.25and other relevant factors. Before submitting 7.26state grant spending projections, the office 7.27must meet and consult with representatives of 7.28public and private postsecondary education, 7.29the Department of Finance, the governor's 7.30office, legislative staff, and financial aid 7.31administrators.7.32(b) The Minnesota Office of Higher 7.33Education shall report to the higher education 7.34divisions of the house and senate finance 8.1committees on participation in postsecondary 8.2education by income, and persistence and 8.3graduation rates of state grant recipients 8.4compared to students who did not receive 8.5state grants. The office is authorized to match 8.6individual student data from the student 8.7record enrollment database with individual 8.8student data from the state grant database on 8.9data elements necessary to perform the study.

8.108.118.12Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

8.13Subdivision 1.Total Appropriation$668,388,000$704,288,000

8.14The amounts that may be spent for each 8.15purpose are specified in the following 8.16subdivisions.

8.178.18Subd. 2.Central Office and Shared Services Unit$40,170,550$40,170,550

8.19For the office of the chancellor and the shared 8.20services division.

8.21Subd. 3.Operations and Maintenance$628,217,450$664,118,000

8.22(a) This appropriation includes funding 8.23for the board's initiatives on recruiting and 8.24retaining underrepresented students, strategic 8.25educational advancements, STEM initiatives, 8.26and infrastructure and technology, and for 8.27the costs of inflation. This appropriation 8.28also includes funding to reduce the tuition 8.29rate increase to two percent from the 8.30board-approved plan of a four percent annual 8.31increase.8.32(b) Appropriations for technology and 8.33infrastructure under this subdivision must 8.34not be used to increase permanent positions 9.1in the office of the chancellor or the shared 9.2services office. Any new positions funded 9.3from the technology and infrastructure 9.4appropriation must be at a campus.9.5(c) $400,000 each year is for 9.6community-based energy development 9.7pilot projects at Mesabi Range Technical 9.8and Community College, the Minnesota 9.9West Community and Technical College, 9.10and Riverland Community College. Each 9.11campus must establish partnerships for 9.12community-based energy development pilot 9.13projects that involve students and faculty. An 9.14allocation for the pilot project is available 9.15to the participating institutions and the 9.16partnerships for the biennium ending June 9.1730, 2009. 9.18(d) $750,000 in the first year is for a modular 9.19clean-room research and training facility 9.20at St. Paul College. This is a onetime 9.21appropriation and is available until expended.9.22(e) $300,000 the first year is for a grant to 9.23the Range Association of Municipalities 9.24and Schools for a study of student demand 9.25and employer needs for higher education in 9.26the Mesabi Range region of northeastern 9.27Minnesota including the cities of Grand 9.28Rapids through Eveleth to Ely. The 9.29association must coordinate and contract for 9.30a study in cooperation with the Board of 9.31Regents of the University of Minnesota and 9.32the Board of Trustees of the Minnesota State 9.33Colleges and Universities. The governing 9.34boards must advise on which of the identified 9.35needs can be met by University of Minnesota 10.1courses and which can be met by the 10.2Minnesota State Colleges and Universities, 10.3and which degree programs may be offered 10.4jointly. The final report must be submitted to 10.5the committees of the legislature responsible 10.6for higher education finance by January 15, 10.72008, with recommendations and plans for 10.8the region.10.9(f) $120,000 in each year is for the Cook 10.10County Higher Education Board to provide 10.11educational programs and academic support 10.12services. The base appropriation for this 10.13program is $120,000 in each year of the 10.14biennium ending June 30, 2011.10.15(g) $2,000,000 the first year and $1,000,000 10.16the second year are for a pilot project with 10.17the Northeast Minnesota Higher Education 10.18District and high schools in its area. Up to 10.19$1,200,000 of the first year appropriation 10.20must be used to purchase equipment that is 10.21necessary to reestablish a technical education 10.22curriculum in the area high schools to 10.23provide the students with the technical 10.24skills necessary for the workforce. Students 10.25from area high schools may also access 10.26the facilities and faculty of the Northeast 10.27Minnesota Higher Education District 10.28for state-of-the-art technical education 10.29opportunities, including MnSCU's 2+2 10.30Pathways initiative. $1,000,000 is added to 10.31the base for this project.10.32(h) $50,000 in the first year is for St. Paul 10.33College to collaborate with the United Auto 10.34Workers Local 879 to purchase a Ford 10.35Ranger pickup truck to retrofit to run on a 11.1battery-powered motor. This vehicle must 11.2be retrofitted to serve as a prototype that 11.3could be mass-produced at the St. Paul Ford 11.4assembly plant.11.5(i) $100,000 each year is for a grant to a 11.6Minnesota public postsecondary institution 11.7with a total student enrollment under 7,000 11.8students, that has an existing women's 11.9hockey team competing in Division I in the 11.10Western Collegiate Hockey Association. 11.11The institution may use the grant for 11.12equipment, facility improvements, travel and 11.13compensation for coaches, trainers, and other 11.14necessary personnel.11.15(j) $450,000 each year is to establish a center 11.16for workforce and economic development 11.17at the Mesabi Range Community and 11.18Technical College and to enhance eFolio 11.19Minnesota. The board, in cooperation with 11.20the Iron Range Resources and Rehabilitation 11.21Board (IRRRB) and the Department of 11.22Employment and Economic Development, 11.23must establish the center to provide on-site 11.24and Internet-based support and technical 11.25assistance to users of the state's eFolio 11.26Minnesota system to promote workforce and 11.27economic development. The center must 11.28assist local economic development agencies 11.29and officials to enable them to access 11.30workforce information generated through the 11.31eFolio Minnesota system. The board must 11.32enhance the eFolio Minnesota system as 11.33necessary to serve these purposes. The center 11.34must report annually to the IRRRB and the 11.35Department of Employment and Economic 12.1Development on the outcomes of the center's 12.2activities.12.3(k) $1,000,000 the first year is to identify 12.4and improve on practices for selecting and 12.5purchasing textbooks and course materials 12.6that are used by students. The board, in 12.7collaboration with the Minnesota State 12.8University Student Association (MSUSA) 12.9and the Minnesota State College Student 12.10Association (MSCSA) must develop 12.11and implement pilot projects with this 12.12appropriation to address the financial burden 12.13that textbook prices and requirements place 12.14on students. These projects may include 12.15textbook rental programs, cooperative 12.16purchasing efforts, training, and education 12.17and awareness programs for students and 12.18faculty on cost considerations and textbook 12.19options. The student associations must 12.20be fully involved in the development and 12.21implementation of any project using this 12.22appropriation. Each student association 12.23must vote to approve a project before it is 12.24implemented. MSUSA and MSCSA must 12.25report to the committees of the legislature 12.26responsible for higher education finance by 12.27February 15, 2009, on the success of the pilot 12.28projects. This money is available until June 12.2930, 2009.

12.30Subd. 4.Board Policies

12.31(a) The board must adopt a policy that allows 12.32students to add the cost of textbooks and 12.33required course materials purchased at a 12.34campus bookstore, owned by or operated 12.35under a contract with the campus, to the 13.1existing waivers or payment plans for tuition 13.2and fees.13.3(b) The board must adopt a policy setting 13.4the maximum number of semester credits 13.5required for a baccalaureate degree at 120 13.6semester credits or the equivalent and the 13.7number of semester credits required for an 13.8associate degree at 60 semester credits or the 13.9equivalent.

13.1013.11Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

13.12Subdivision 1.Total Appropriation$696,082,000$742,143,000

13.13The amounts that may be spent for each 13.14purpose are specified in the following 13.15subdivisions.

13.16Subd. 2.Operations and Maintenance 611,112,000667,550,000

13.17(a) This appropriation includes amounts for 13.18the board:13.19(1) to make investments in the university's 13.20technology and related infrastructure;13.21(2) to award faculty and staff compensation 13.22increases differentially;13.23(3) for the board's health workforce and 13.24clinical sciences initiative;13.25(4) initiatives in science and engineering;13.26(5) initiatives relating to the environment, 13.27agriculture, and renewable energy; and13.28(6) for advancing education, including an 13.29Ojibwe Indian language program on the 13.30Duluth campus.13.31(b) $2,250,000 each year is to establish 13.32banded tuition at the Morris, Crookston, and 14.1Duluth campuses to reduce tuition costs for 14.2students.14.3(c) $7,000,000 for the biennium is for 14.4scholarships to mitigate the effects of rising 14.5tuition on Minnesota students and families. 14.6This appropriation must be matched with 14.7$2 of nonstate money for each $1 of state 14.8money.14.9(d) $12,404,000 in the second year is to 14.10reduce the proposed tuition rate increase. 14.11Any of this amount that is not used by the 14.12board to reduce tuition cancels to the general 14.13fund.14.14(e) $300,000 the first year is for the Center 14.15for Transportation Studies to complete a 14.16study to assess public policy options for 14.17reducing the volume of greenhouse gases 14.18emitted from the transportation sector in 14.19Minnesota. The Center for Transportation 14.20Studies must report its preliminary findings 14.21to the legislature by February 1, 2008, and 14.22must issue its full report by June 1, 2008. 14.23This is a onetime appropriation.14.24(f) $250,000 each year is to establish an India 14.25Center to improve and promote relations with 14.26India and Southeast Asia. The center must 14.27partner with public and private organizations 14.28in Minnesota to: 14.29(1) foster an understanding of the history, 14.30culture, and values of India;14.31(2) serve as a resource and catalyst to 14.32promote economic, governmental, and 14.33academic pursuits involving India; and15.1(3) facilitate educational and business 15.2exchanges and partnerships, collaborative 15.3research, and teaching and training activities 15.4for Minnesota students and teachers.15.5The Board of Regents may establish an 15.6advisory council to facilitate the mission 15.7and objectives of the India Center and must 15.8report on the progress of the India Center by 15.9February 15, 2008, to the governor and chairs 15.10of the legislative committees responsible for 15.11higher education finance. This is a onetime 15.12appropriation.15.13(g) $750,000 in the first year is to assist in 15.14the formation of the neighborhood alliance 15.15and for projects identified in section 8. The 15.16alliance, the Board of Regents, and the city of 15.17Minneapolis may cooperate on the projects 15.18and may use a public services of other entities 15.19to complete all or a portion of a project.15.20(h) $300,000 the first year is to establish a 15.21Dakota language teacher training immersion 15.22program on the Twin Cities campus to 15.23prepare teachers to teach in Dakota language 15.24immersion programs. This is a onetime 15.25appropriation.15.26(i) $400,000 each year is for the Minnesota 15.27Institute for Sustainable Agriculture to 15.28provide funds for on-station and on-farm 15.29field scale research and outreach to develop 15.30and test the agronomic and economic 15.31requirements of diverse strands of prairie 15.32plants and other perennials for bioenergy 15.33systems including but not limited to 15.34multiple species selection and establishment, 15.35ecological management between planting 16.1and harvest, harvest technologies, financial 16.2and agronomic risk management, farmer 16.3goal setting and adoption of technologies, 16.4integration of wildlife habitat into 16.5management approaches, evaluation of 16.6carbon and other benefits, and robust polices 16.7needed to induce farmer conversion on 16.8marginal lands.

16.9Subd. 3.Health Care Access Fund2,157,0002,157,000

16.10This appropriation is from the health care 16.11access fund and is for primary care education 16.12initiatives.

16.13Subd. 4.Special Appropriation65,813,00065,436,000

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

16.15(1) For the Agricultural Experiment 16.16Station, Minnesota Extension Service. This 16.17appropriation includes funding to promote 16.18alternative livestock research and outreach 16.19at the Minnesota Institute for Sustainable 16.20Agriculture, and to promote sustainable and 16.21organic agricultural research and education. 16.22(2) This appropriation includes funding 16.23for research efforts that demonstrate a 16.24renewed emphasis on the needs of the state's 16.25production agriculture community and a 16.26continued focus on renewable energy derived 16.27from Minnesota biomass resources including 16.28agronomic crops, plant and animal wastes, 16.29and native plants or trees, with priority for 16.30extending the Minnesota vegetable growing 16.31season; fertilizer and soil fertility research 16.32and development; treating and curing human 16.33diseases utilizing plant and livestock cells; 16.34using biofuel production coproducts as 17.1feed for livestock; and a rapid agricultural 17.2response fund for current or emerging 17.3animal, plant, and insect problems affecting 17.4production or food safety. In addition, the 17.5appropriation may be used to secure a facility 17.6and retain current faculty levels for poultry 17.7research currently conducted at UMore Park.17.8(3) In the area of renewable energy, priority 17.9should be given to projects pertaining to: 17.10biofuel and other energy production from 17.11small grains; alternative bioenergy crops and 17.12cropping systems; and growing, harvesting, 17.13and transporting biomass plant material.17.14(4) This appropriation includes funding for 17.15the college of food, agricultural, and natural 17.16resources sciences to establish and maintain 17.17a statewide organic research and education 17.18initiative to provide leadership for organic 17.19agronomic, horticultural, livestock, and food 17.20systems research, education, and outreach 17.21and for the purchase of state-of-the-art 17.22laboratory, planting, tilling, harvesting, and 17.23processing equipment necessary for this 17.24project.17.25(5) By February 1, 2009, the Board 17.26of Regents must report to the legislative 17.27committees with responsibility for agriculture 17.28and higher education finance on the research 17.29and initiatives under this paragraph.17.30(6) The base appropriation is $51,775,000 17.31each year of the biennium ending June 30, 17.322011.

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

17.34$346,000 each year is to support up to 12 17.35resident physicians each year in the St. 18.1Cloud Hospital family practice residency 18.2program. The program must prepare doctors 18.3to practice primary care medicine in the rural 18.4areas of the state. The legislature intends 18.5this program to improve health care in rural 18.6communities, provide affordable access to 18.7appropriate medical care, and manage the 18.8treatment of patients in a more cost-effective 18.9manner.18.10The remainder of this appropriation is for 18.11the rural physicians associates program, the 18.12Veterinary Diagnostic Laboratory, health 18.13sciences research, dental care, and the 18.14Biomedical Engineering Center.

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

18.16For the Geological Survey and the talented 18.17youth mathematics program.

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

18.19For general research, student loans matching 18.20money, industrial relations education, 18.21Natural Resources Research Institute, Center 18.22for Urban and Regional Affairs, and the Bell 18.23Museum of Natural History. $100,000 is 18.24added to the base appropriation for industrial 18.25relations education.

18.2618.27Subd. 5.University of Minnesota and Mayo Foundation Partnership17,000,0007,000,000

18.28For the direct and indirect expenses of the 18.29collaborative research partnership between 18.30the University of Minnesota and the Mayo 18.31Foundation for research in biotechnology 18.32and medical genomics. $7,000,000 is added 18.33to the base. This appropriation is available 18.34until expended. An annual report on the 18.35expenditure of these funds must be submitted 19.1to the governor and the chairs of the senate 19.2and house committees responsible for higher 19.3education and economic development by 19.4June 30 of each fiscal year.

19.5Subd. 6.Academic Health Center

19.6The appropriation for Academic Health 19.7Center funding under Minnesota Statutes, 19.8section 297F.10, is $22,250,000 each year.

19.9Sec. 6. MAYO CLINIC

19.10Subdivision 1.Total Appropriation$1,202,000$1,250,000

19.11The amounts that may be spent for each 19.12purpose are specified in the following 19.13subdivisions.

19.14Subd. 2.Medical School591,000615,000

19.15The state of Minnesota must pay a capitation 19.16each year for each student who is a resident 19.17of Minnesota. The appropriation may be 19.18transferred between years of the biennium to 19.19accommodate enrollment fluctuations. The 19.20funding base for this program is $640,000 in 19.21fiscal year 2010 and $665,000 in fiscal year 19.222011.19.23It is intended that during the biennium the 19.24Mayo Clinic use the capitation money to 19.25increase the number of doctors practicing in 19.26rural areas in need of doctors.

19.2719.28Subd. 3.Family Practice and Graduate Residency Program611,000635,000

19.29The state of Minnesota must pay stipend 19.30support for up to 27 residents each year. The 19.31funding base for this program is $660,000 in 19.32fiscal year 2010 and $686,000 in fiscal year 19.332011.20.1    Sec. 7. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING.20.2    Subdivision 1.Membership.A 12-member legislative commission on 20.3postsecondary funding is established consisting of six members of the house of 20.4representatives appointed by the speaker and six members of the senate appointed by 20.5the Subcommittee on Committees of the Committee on Rules and Administration. The 20.6commission may elect a chair and other officers as necessary. 20.7    Subd. 2.Charge.The commission must develop an alternative funding formula 20.8or funding method for postsecondary education that creates incentives for high quality 20.9postsecondary education while maintaining access for students. In developing the formula 20.10or funding method, the commission must consider and address: 20.11    (1) both institutional aid and direct student aid; 20.12    (2) the major cost drivers in postsecondary education, such as inflation and 20.13enrollment; 20.14    (3) federal postsecondary funding and tax incentives for postsecondary education; 20.15and 20.16    (4) funding the formula or funding method within the projected constraints on the 20.17state budget in the coming decade.20.18    Subd. 3.Report.The commission must report its recommendations to the house 20.19Division on Higher Education and Workforce Development Policy and Finance, and the 20.20senate Higher Education Budget and Policy Division by June 30, 2008.20.21    Subd. 4.Expiration.The commission expires June 30, 2008.20.22    Sec. 8. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA 20.23NEIGHBORHOOD ALLIANCE.20.24    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 20.25have the meanings given them.20.26    (b) "Alliance" means a representative body of the constituencies, including, but 20.27not limited to, the University of Minnesota, the city of Minneapolis, and the recognized 20.28neighborhood organizations and business associations referenced in the report.20.29    (c) "Board" means the Board of Regents of the University of Minnesota.20.30    (d) "Report" means the report and appendix entitled Moving Forward Together: 20.31University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to 20.32the legislature in February 2007.20.33    (e) "University partnership district" or "district" means the area located within the 20.34city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East 21.1Como, Prospect Park, and University, as they are defined by the city, and the university's 21.2Minneapolis campus.21.3    (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that 21.4house significant numbers of university students and staff. Transportation and housing 21.5policy analysis and planning must include these areas but they must not be included in 21.6the projects funded through the alliance.21.7    (g) "University" means the University of Minnesota.21.8    Subd. 2.Alliance; functions.The alliance may facilitate, initiate, or manage 21.9projects with the board, city, or other public or private entities that are intended to 21.10maintain the university partnership district as a viable place to study, research, and live. 21.11Projects may include, but are not limited to, those outlined in the report, as well as 21.12efforts to involve students in activities to maintain and improve the university partnership 21.13district; cooperative university and university partnership district long-term planning; and 21.14incentives to increase homeownership within the district with particular emphasis on 21.15employees of the university and of other major employers located within the district.21.16    Subd. 3.Report.The board must report to the legislature by January 15, 2009, on 21.17the expenditure of funds appropriated under section 3.21.18ARTICLE 221.19MINNESOTA GI BILL FOR VETERANS21.20    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to 21.21read:21.22    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 21.23for:21.24    (1) necessary state level administration of financial aid and Minnesota GI Bill 21.25programs, including accounting, auditing, and disbursing state and federal financial aid 21.26funds, and reporting on financial aid programs to the governor and the legislature;21.27    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 21.28and career schools, under sections 
         136A.61 to 
         136A.71 and chapter 141;21.29    (3) administering the Learning Network of Minnesota;21.30    (4) negotiating and administering reciprocity agreements;21.31    (5) publishing and distributing financial aid information and materials, and other 21.32information and materials under section 
         136A.87, to students and parents;21.33    (6) collecting and maintaining student enrollment and financial aid data and 21.34reporting data on students and postsecondary institutions to develop and implement a 21.35process to measure and report on the effectiveness of postsecondary institutions;22.1    (7) administering the federal programs that affect students and institutions on a 22.2statewide basis; and22.3    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 22.4administer the programs under its supervision.22.5EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 22.6qualifying coursework taken on or after that date.22.7    Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.22.8    Subdivision 1.Policy.It is the policy of the state of Minnesota to provide 22.9postsecondary educational assistance to Minnesota veterans who have provided honorable 22.10service to this state and nation as members of the United States armed forces, whether 22.11in peacetime or in war, and to the spouses and children of Minnesota veterans who have 22.12become severely disabled or deceased during or as the direct result of military service.22.13    Subd. 2.Definitions.(a) The definitions in this subdivision apply to this section. 22.14    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 22.15specified.22.16    (c) "Cost of attendance" for both undergraduate and graduate students has the 22.17meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.22.18    (d) "Child" means a natural or adopted child of a person described in subdivision 5, 22.19paragraph (a), clause (1), item (i) or (ii).22.20    (e) "Director" means the director of the Minnesota Office of Higher Education.22.21    (f) "Eligible institution" means a postsecondary institution located in this state 22.22that either (1) is operated by this state; or (2) is operated publicly or privately and, as 22.23determined by the office, maintains academic standards substantially equivalent to those 22.24of comparable institutions operated in this state.22.25    (g) "Eligible student" means a person who:22.26    (1) if the student is an undergraduate student, has applied for the federal Pell Grant 22.27and the Minnesota State Grant;22.28    (2) is maintaining satisfactory academic progress as defined by the institution for 22.29students participating in federal Title IV programs;22.30    (3) is enrolled in an education program leading to a certificate, diploma, or degree 22.31at an eligible institution;22.32    (4) has applied for educational assistance under the Minnesota GI Bill program prior 22.33to the end of the academic term for which the assistance is being requested.22.34    (5) is in compliance with child support payment requirements under section 22.35136A.121, subdivision 2, clause (5).23.1    (h) "Part-time student" means an undergraduate student enrolled for fewer than 12 23.2credits in a semester or the equivalent, or a graduate student as defined by the student's 23.3eligible institution.23.4    (i) "Program" means the Minnesota GI Bill program established in this section, 23.5unless otherwise specified.23.6    (j) "Service-connected" has the meaning given by the United States Department 23.7of Veterans Affairs.23.8    (k) "Veteran" has the meaning given in section 197.447, and also includes a service 23.9member who has fulfilled the requirements for being a veteran but is still serving actively 23.10in the United States armed forces.23.11    Subd. 3.Program established.There is established a program to provide 23.12postsecondary educational assistance to eligible Minnesota veterans and to the children 23.13and spouses of deceased and severely disabled Minnesota veterans. This program may be 23.14cited as the "Minnesota GI Bill program." 23.15    The director, in consultation with the commissioner and in cooperation with 23.16eligible postsecondary educational institutions, shall expend a biennial appropriation 23.17for the purpose of providing postsecondary educational assistance to eligible persons 23.18in accordance with this program. Each public postsecondary educational institution in 23.19the state must participate in the program and each private postsecondary educational 23.20institution in the state is encouraged to participate in the program. Any participating 23.21private institution may suspend or terminate its participation in the program at the end 23.22of any semester or other academic term.23.23    Subd. 4.Duties; responsibilities.(a) The director, in consultation with the 23.24commissioner, shall establish policies and procedures including, but not limited to, 23.25procedures for student application record keeping, information sharing, payment to 23.26participating eligible institutions, and other procedures the director considers appropriate 23.27and necessary for effective and efficient administration of the program established in 23.28this section.23.29    (b) The director, in consultation with the commissioner, may delegate part or 23.30all of the administrative procedures for the program to responsible representatives of 23.31participating eligible institutions.23.32    Subd. 5.Eligibility.(a) A person is eligible for educational assistance under this 23.33section if:23.34    (1) the person is:23.35    (i) a veteran who is serving or has served honorably in any branch or unit of the 23.36United States armed forces at any time on or after August 2, 1990;24.1    (ii) a nonveteran who has served honorably for a total of 16 years or more 24.2cumulatively as a member of the Minnesota national guard or any other active or reserve 24.3component of the United States armed forces, and any part of that service occurred on 24.4or after August 2, 1990;24.5    (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as 24.6a direct result of that military service; or24.7    (iv) the spouse or child of a person described in (i) or (ii) who has a total 24.8and permanent service-connected disability as rated by the United States veterans 24.9administration;24.10    (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's 24.11state of residence at the time of the person's initial enlistment or any reenlistment in 24.12the United States armed forces;24.13    (3) the person receiving the educational assistance is a Minnesota resident, as 24.14defined in section 136A.101, subdivision 8; and24.15    (4) the person receiving the educational assistance is an eligible student.24.16    (b) A person's eligibility terminates when the person becomes eligible for benefits 24.17under section 135A.52.24.18    (c) As proof of honorable service and disability or death status for a veteran or 24.19service member, the director, by policy and in consultation with the commissioner, may 24.20require official documentation, including the person's federal form DD-214 or other official 24.21military discharge papers, correspondence from the United States veterans administration, 24.22birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed 24.23affidavits, proof of residency, proof of identity, or any other official documentation the 24.24director considers necessary to determine an applicant's eligibility status.24.25    (d) The director, in consultation with the commissioner, may deny eligibility or 24.26terminate benefits under this section to any person who has not provided sufficient proof of 24.27eligibility for the program. An applicant may appeal the director's eligibility determination 24.28in writing to the director at any time. The director must rule on any application or appeal 24.29within 30 days of receipt of all documentation that the director requires. Upon receiving 24.30an application with insufficient documentation, the director must notify the applicant 24.31within 30 days of receipt of the application that the application is being suspended pending 24.32receipt by the director of sufficient documentation from the applicant. The decision of the 24.33director regarding an appeal is final; however, an applicant whose appeal of an eligibility 24.34determination has been rejected by the director may submit an additional appeal of that 24.35determination in writing to the director at any time that the applicant is able to provide 24.36substantively significant additional information relating to the person's eligibility for the 25.1program. An approval of an applicant's eligibility by the director following an appeal by 25.2the applicant is not retroactively effective beyond the later of one year previously or the 25.3semester of the person's original application.25.4    Subd. 6.Benefit amount.(a) On approval by the director of an applicant's 25.5eligibility for the program, the applicant shall be awarded, on a funds-available basis, the 25.6educational assistance under the program for use at any time according to program rules 25.7at any eligible institution. Eligibility for the program terminates upon exhaustion of a 25.8person's benefits as specified in paragraph (c).25.9    (b) The amount of educational assistance in any semester or term for an eligible 25.10person must be determined by subtracting from the eligible person's cost of attendance 25.11at that eligible public institution, or in the case of an eligible private institution the cost 25.12of attendance for a comparable program at the Twin Cities campus of the University of 25.13Minnesota, the amount the person received or was eligible to receive in that semester 25.14or term from:25.15    (1) the federal Pell Grant;25.16    (2) the state grant under section 136A.121; and25.17    (3) any federal military or veterans educational benefits, including, but not limited 25.18to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 25.19vocational rehabilitation benefits, and any other federal benefits associated with the 25.20person's status as a veteran, except veterans disability payments from the United States 25.21Department of Veterans Affairs.25.22    (c) The amount of education assistance for any eligible person must not exceed any 25.23of the following amounts:25.24    (1) $1,250 per semester or term of enrollment, or in the case of a part-time student 25.25$625 per semester or term of enrollment;25.26    (2) $3,570 per state fiscal year; and25.27    (3) $10,000 total. 25.28EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 25.29qualifying coursework taken on or after that date.25.30    Sec. 3. ANNUAL REVIEW AND RECOMMENDATION.25.31    The commissioner of veterans affairs, in consultation with the director of higher 25.32education, must annually review veterans' participation level in and expenditures for the 25.33Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15 25.34each year, must make recommendations to the chairs of the senate and house committees 26.1having oversight responsibility for veterans affairs regarding adjustment of individual 26.2benefit levels and program funding.26.3ARTICLE 326.4RELATED HIGHER EDUCATION26.5    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:26.6    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 26.7involving the Minnesota Office of Higher Education and other institutions is governed 26.8by sections section136A.05 and 136A.08, subdivision 8. 26.9    (b) Student financial aid. Data collected and used by the Minnesota Office of 26.10Higher Education on applicants for financial assistance are classified under section 26.11136A.162
         . 26.12    (c) Minnesota college savings plan data. Account owner data, account data, and 26.13data on beneficiaries of accounts under the Minnesota college savings plan are classified 26.14under section 
         136G.05, subdivision 10. 26.15    (d) School financial records. Financial records submitted by schools registering 26.16with the Minnesota Office of Higher Education are classified under section 
         136A.64. 26.17    (e) Enrollment and financial aid data. Data collected from eligible institutions on 26.18student enrollment and federal and state financial aid are governed by sections 136A.121, 26.19subdivision 18, and 136A.1701, subdivision 11.26.20    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision 26.21to read:26.22    Subd. 4.Construction management education surcharge and account.(a) 26.23For nonresidential construction building permits, the surcharge under subdivision 1 26.24is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents, 26.25whichever amount is greater, and designated for and deposited in the construction 26.26management education account.26.27    (b) The construction management education account is created as an account in the 26.28special revenue fund, administered by the Minnesota Office of Higher Education for 26.29the purpose of enhancing construction management education in public postsecondary 26.30institutions. Funds in the account are appropriated to the director of the Minnesota Office 26.31of Higher Education for the purposes of section 136A.127.26.32    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:27.1    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture 27.2Education Leadership Council is established. The council is composed of 16 17 members 27.3as follows:27.4    (1) the chair of the University of Minnesota agricultural education program;27.5    (2) a representative of the commissioner of education;27.6    (3) a representative of the Minnesota State Colleges and Universities recommended 27.7by the chancellor;27.8    (4) the president and the president-elect of the Minnesota Association of Agriculture 27.9Educators;27.10    (5) a representative of the Future Farmers of America Foundation;27.11    (6) a representative of the commissioner of agriculture;27.12    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 27.13University of Minnesota;27.14    (8) a representative of the Minnesota Private Colleges Council;27.15    (9) two members representing agriculture education and agriculture business 27.16appointed by the governor;27.17    (9) (10) the chair of the senate Committee on Agriculture, General Legislation 27.18and Veterans Affairs;27.19    (10) (11) the chair of the house Committee on Agriculture;27.20    (11) (12) the ranking minority member of the senate Committee on Agriculture, 27.21General Legislation and Veterans Affairs, and a member of the senate Education 27.22Committee designated by the Subcommittee on Committees of the Committee on Rules 27.23and Administration; and27.24    (12) (13) the ranking minority member of the house Agriculture Committee, and a 27.25member of the house Education Committee designated by the speaker.27.26    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 27.27(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement 27.28member representing the same constituency.27.29    Sec. 4. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:27.30    Subd. 2. Revisions and reviews required. (a) The commissioner of education must 27.31revise and appropriately embed technology and information literacy standards consistent 27.32with recommendations from school media specialists into the state's academic standards 27.33and graduation requirements and implement a review cycle for state academic standards 27.34and related benchmarks, consistent with this subdivision. During each review cycle, the 27.35commissioner also must examine the alignment of each required academic standard and 28.1related benchmark with the knowledge and skills students need for college readiness and 28.2advanced work in the particular subject area.28.3    (b) The commissioner in the 2006-2007 school year must revise and align the state's 28.4academic standards and high school graduation requirements in mathematics to require 28.5that students satisfactorily complete the revised mathematics standards, beginning in the 28.62010-2011 school year. Under the revised standards:28.7    (1) students must satisfactorily complete an algebra I credit by the end of eighth 28.8grade; and28.9    (2) students scheduled to graduate in the 2014-2015 school year or later must 28.10satisfactorily complete an algebra II credit or its equivalent.28.11The commissioner also must ensure that the statewide mathematics assessments 28.12administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 28.13school year are aligned with the state academic standards in mathematics. The statewide 28.1411th grade mathematics test administered to students under clause (2) beginning in 28.15the 2013-2014 school year must include algebra II test items that are aligned with 28.16corresponding state academic standards in mathematics. The commissioner, in 28.17collaboration with the Minnesota State Colleges and Universities, must ensure that passing 28.18score for the statewide 11th grade mathematics test represents readiness for college so that 28.19a student who achieves a passing score on this test, upon graduation, is immediately ready 28.20to take college courses for college credit in a two-year or a four-year institution, consistent 28.21with section 135A.104. The commissioner must implement a review of the academic 28.22standards and related benchmarks in mathematics beginning in the 2015-2016 school year.28.23    (c) The commissioner in the 2007-2008 school year must revise and align the state's 28.24academic standards and high school graduation requirements in the arts to require that 28.25students satisfactorily complete the revised arts standards beginning in the 2010-2011 28.26school year. The commissioner must implement a review of the academic standards and 28.27related benchmarks in arts beginning in the 2016-2017 school year.28.28    (d) The commissioner in the 2008-2009 school year must revise and align the state's 28.29academic standards and high school graduation requirements in science to require that 28.30students satisfactorily complete the revised science standards, beginning in the 2011-2012 28.31school year. Under the revised standards, students scheduled to graduate in the 2014-2015 28.32school year or later must satisfactorily complete a chemistry or physics credit. The 28.33commissioner must implement a review of the academic standards and related benchmarks 28.34in science beginning in the 2017-2018 school year.28.35    (e) The commissioner in the 2009-2010 school year must revise and align the state's 28.36academic standards and high school graduation requirements in language arts to require 29.1that students satisfactorily complete the revised language arts standards beginning in the 29.22012-2013 school year. The commissioner, in collaboration with the Minnesota State 29.3Colleges and Universities, must ensure that the passing score for the statewide tenth 29.4grade reading and language arts test represents readiness for college so that a student who 29.5achieves a passing score on this test, upon graduation, is immediately ready to take college 29.6courses for college credit in a two-year or a four-year institution, consistent with section 29.7135A.104. The commissioner must implement a review of the academic standards and 29.8related benchmarks in language arts beginning in the 2018-2019 school year.29.9    (f) The commissioner in the 2010-2011 school year must revise and align the state's 29.10academic standards and high school graduation requirements in social studies to require 29.11that students satisfactorily complete the revised social studies standards beginning in the 29.122013-2014 school year. The commissioner must implement a review of the academic 29.13standards and related benchmarks in social studies beginning in the 2019-2020 school year.29.14    (g) School districts and charter schools must revise and align local academic 29.15standards and high school graduation requirements in health, physical education, world 29.16languages, and career and technical education to require students to complete the revised 29.17standards beginning in a school year determined by the school district or charter school. 29.18School districts and charter schools must formally establish a periodic review cycle for 29.19the academic standards and related benchmarks in health, physical education, world 29.20languages, and career and technical education.29.21    Sec. 5. Minnesota Statutes 2006, section 120B.024, is amended to read:29.22120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.29.23    (a) Students beginning 9th grade in the 2004-2005 school year and later must 29.24successfully complete the following high school level course credits for graduation:29.25    (1) four credits of language arts;29.26    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 29.27and probability sufficient to satisfy the academic standard;29.28    (3) three credits of science, including at least one credit in biology;29.29    (4) three and one-half credits of social studies, encompassing at least United 29.30States history, geography, government and citizenship, world history, and economics or 29.31three credits of social studies encompassing at least United States history, geography, 29.32government and citizenship, and world history, and one-half credit of economics taught in 29.33a school's social studies, agriculture education, or business department;29.34    (5) one credit in the arts; and29.35    (6) a minimum of seven elective course credits.30.1    A course credit is equivalent to a student successfully completing an academic 30.2year of study or a student mastering the applicable subject matter, as determined by the 30.3local school district.30.4    (b) An agriculture science course may fulfill a science credit requirement in addition 30.5to the specified science credits in biology and chemistry or physics under paragraph (a), 30.6clause (3).30.7    (c) The commissioner, in collaboration with the Minnesota State Colleges and 30.8Universities, must develop and implement a statewide plan to communicate with all 30.9Minnesota high school students no later than the beginning of ninth grade the state's 30.10expectations for college readiness, consistent with sections 120B.023, subdivision 2, 30.11paragraphs (b) and (e), and 135A.104.30.12    Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:30.13    Subd. 7. Reports. Instructional expenditure and enrollment data for each 30.14instructional category shall be submitted by the public postsecondary systems to the 30.15Minnesota Office of Higher Education and the Department of Finance and included in the 30.16biennial budget document. The specific data shall be submitted only after the director of 30.17the Minnesota Office of Higher Education has consulted with a data advisory task force to 30.18determine the need, content, and detail of the information.30.19    Sec. 7. [135A.043] RESIDENT TUITION.30.20    (a) A student shall qualify for a resident tuition rate or its equivalent at state 30.21universities and colleges, including the University of Minnesota, if the student meets 30.22all of the following requirements:30.23    (1) high school attendance within the state for three or more years;30.24    (2) graduation from a state high school or attainment within the state of the 30.25equivalent of high school graduation; and30.26    (3) registration as an entering student at, or current enrollment in, a public institution 30.27of higher education.30.28    (b) This section is in addition to any other statute, rule, or higher education 30.29institution regulation or policy providing eligibility for a resident tuition rate or its 30.30equivalent to a student.30.31    (c) To qualify for resident tuition under this section an individual who is not a citizen 30.32or permanent resident of the United States must provide the college or university with 30.33an affidavit that the individual will file an application to become a permanent resident at 30.34the earliest opportunity the individual is eligible to do so.31.1EFFECTIVE DATE.This section is effective the day following final enactment 31.2and applies to tuition for school terms commencing on or after that date.31.3    Sec. 8. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:31.4    Subd. 2. Performance and accountability. Higher education systems and 31.5campuses are expected to achieve the objectives in subdivision 1 and will be held 31.6accountable for doing so. The legislature is increasing the flexibility of the systems and 31.7campuses to provide greater responsibility to higher education in deciding how to achieve 31.8statewide objectives, and to decentralize authority so that those decisions can be made 31.9at the level where the education is delivered. To demonstrate their accountability, the 31.10legislature expects each system and campus to measure and report on its performance, 31.11using meaningful indicators that are critical to achieving the objectives in subdivision 1, 31.12as provided in section 135A.033. Nothing in this section precludes a system or campus 31.13from determining its own objectives and performance measures beyond those identified 31.14in this section. 31.15    Sec. 9. [135A.104] COLLEGE READINESS.31.16    (a) Minnesota State Colleges and Universities must collaborate with the 31.17commissioner of education in establishing passing scores on the Minnesota comprehensive 31.18assessments in reading for grade 10 and in mathematics for grade 11 under section 31.19120B.30 so that "passing score" performances on those two assessments represent a 31.20student's college readiness. For purposes of this section and chapter 120B, "college 31.21readiness" means that a student who graduates from a public high school is immediately 31.22ready to take college courses for college credit in a two-year or a four-year institution. 31.23Minnesota State Colleges and Universities also must collaborate with the commissioner of 31.24education to develop and implement a statewide plan to communicate with all Minnesota 31.25high school students no later than the beginning of ninth grade the state's expectations for 31.26college readiness. 31.27    (b) The entrance and admission materials that the Minnesota State Colleges and 31.28Universities provide to prospective students must clearly indicate the level of academic 31.29preparation that the students must have in order to be ready to immediately take college 31.30courses for college credit in two-year and four-year institutions.31.31    Sec. 10. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:31.32    Subdivision 1. Definitions. As used in this section, the following terms have the 31.33meanings given them.32.1    (a) "Administrator" means the administrator of the institution or other person with 32.2general control and supervision of the institution.32.3    (b) "Public or private postsecondary educational institution" or "institution" means 32.4any of the following institutions having an enrollment of more than 100 persons during 32.5any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 32.6(2) the state universities; (3) the state community colleges; (4) public technical colleges; 32.7(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 32.8and (7) schools subject to either chapter 141, sections 
         136A.61136A.615 to 
         136A.71, or 32.9schools exempt under section 
         136A.657, and which offer educational programs within the 32.10state for an academic year greater than six consecutive months. An institution's report to 32.11the Minnesota Office of Higher Education or the Minnesota Department of Education may 32.12be considered when determining enrollment. 32.13    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota 32.14high school in 1997 or later, and who is (1) registering for more than one class during 32.15a full academic term, such as a quarter or a semester or (2) housed on campus and is 32.16registering for one or more classes. Student does not include persons enrolled in extension 32.17classes only or correspondence classes only.32.18    Sec. 11. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:32.19    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years 32.20of age before the beginning of any term, semester or quarter, in which a course of study 32.21is pursued, or a person receiving a railroad retirement annuity who has reached 60 years 32.22of age before the beginning of the term.32.23    Sec. 12. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:32.24    Subdivision 1. Fees and tuition. Except for an administration fee established by the 32.25governing board at a level to recover costs, to be collected only when a course is taken for 32.26credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 32.27of tuition or activity fees to attend courses offered for credit, audit any courses offered 32.28for credit, or enroll in any noncredit courses in any state supported institution of higher 32.29education in Minnesota when space is available after all tuition-paying students have been 32.30accommodated. A senior citizen enrolled under this section must pay any materials, 32.31personal property, or service charges for the course. In addition, a senior citizen who is 32.32enrolled in a course for credit must pay an administrative fee in an amount established 32.33by the governing board of the institution to recover the course costs. There shall be no 32.34administrative fee charges to a senior citizen auditing a course. For the purposes of this 33.1section and section 
         135A.51, the term "noncredit courses" shall not include those courses 33.2designed and offered specifically and exclusively for senior citizens.33.3    The provisions of this section and section 
         135A.51 do not apply to noncredit courses 33.4designed and offered by the University of Minnesota, and the Minnesota State Colleges 33.5and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 33.6under the provisions of this section and section 
         135A.51 shall not be included by such 33.7institutions in their computation of full-time equivalent students when requesting staff 33.8or appropriations.33.9    Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:33.10    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 33.11shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 33.12courses, nor income limitation imposed in determining eligibility.33.13    (b) A senior citizen enrolled in a closed enrollment contract training or professional 33.14continuing education program is not eligible for benefits under subdivision 1.33.15    Sec. 14. [136A.002] DEFINITIONS.33.16    Subdivision 1.Scope.For purposes of this chapter, the terms defined in this section 33.17have the meanings given them.33.18    Subd. 2.Office of Higher Education or office."Office of Higher Education" or 33.19"office" means the Minnesota Office of Higher Education.33.20    Sec. 15. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:33.21    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 33.22for:33.23    (1) necessary state level administration of financial aid programs, including 33.24accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 33.25financial aid programs to the governor and the legislature;33.26    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 33.27and career schools, under sections 
         136A.61136A.615 to 
         136A.71 and chapter 141;33.28    (3) administering the Learning Network of Minnesota;33.29    (4) negotiating and administering reciprocity agreements;33.30    (5) publishing and distributing financial aid information and materials, and other 33.31information and materials under section 
         136A.87, to students and parents;34.1    (6) collecting and maintaining student enrollment and financial aid data and 34.2reporting data on students and postsecondary institutions to develop and implement a 34.3process to measure and report on the effectiveness of postsecondary institutions;34.4    (7) administering the federal programs that affect students and institutions on a 34.5statewide basis; and34.6    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 34.7administer the programs under its supervision.34.8    Sec. 16. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:34.9    Subd. 5. Expiration. Notwithstanding section 
         15.059, subdivision 5, the advisory 34.10groups established in this section do not expire on June 30, 2007.34.11    Sec. 17. Minnesota Statutes 2006, section 136A.0411, is amended to read:34.12136A.0411 COLLECTING FEES.34.13    The office may charge fees for seminars, conferences, workshops, services, and 34.14materials. The office may collect fees for registration and licensure of private institutions 34.15under sections 
         136A.61136A.615 to 
         136A.71 and chapter 141. The money is annually 34.16appropriated to the office. 34.17    Sec. 18. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:34.18    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 34.19before the last day in January, submit a report to the committees in the house of 34.20representatives and the senate with responsibility for higher education finance on:34.21    (1) participation in the tuition reciprocity program by Minnesota students and 34.22students from other states attending Minnesota postsecondary institutions under a 34.23reciprocity agreement;34.24    (2) reciprocity and resident tuition rates at each institution; and34.25    (3) interstate payments and obligations for each state participating in the tuition 34.26reciprocity program in the prior year.; and34.27    (4) summary statistics on number of graduates by institution, degree granted, and 34.28year of graduation for reciprocity students who attended Minnesota postsecondary 34.29institutions.34.30    Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:34.31    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 34.32educational institution located in this state or in a state with which the office has entered 35.1into a higher education reciprocity agreement on state student aid programs that either (1) 35.2is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 35.3operated publicly or privately and, as determined by the office, meets all of the following: 35.4(i) maintains academic standards substantially equivalent to those of comparable 35.5institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 35.6by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 35.7Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.35.8    Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:35.9    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 35.10responsibility for covering the recognized cost of attendance by the applicant, the 35.11applicant's family, and the government. The amount of a financial stipend must not 35.12exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 35.13deducting the following:35.14    (1) the assigned student responsibility of at least 4645.5 percent of the cost of 35.15attending the institution of the applicant's choosing;35.16    (2) the assigned family responsibility as defined in section 
         136A.101; and 35.17    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.35.18    The minimum financial stipend is $100 per academic year.35.19    Sec. 21. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:35.20    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 35.21the applicant:35.22    (1) is a resident of the state of Minnesota;35.23    (2) has a child 12 years of age or younger, or 14 years of age or younger who is 35.24disabled as defined in section 
         125A.02, and who is receiving or will receive care on a 35.25regular basis from a licensed or legal, nonlicensed caregiver;35.26    (3) is income eligible as determined by the office's policies and rules, but is not a 35.27recipient of assistance from the Minnesota family investment program;35.28    (4) has not earned a baccalaureate degree and has been enrolled full time less than 35.29eight semesters or the equivalent;35.30    (5) is pursuing a nonsectarian program or course of study that applies to an 35.31undergraduate degree, diploma, or certificate;35.32    (6) is enrolled at least half time in an eligible institution; and35.33    (7) is in good academic standing and making satisfactory academic progress.36.1    (b) A student who withdraws from enrollment for active military service is entitled 36.2to an additional semester or the equivalent of grant eligibility and will be considered to be 36.3in continuing enrollment status upon return.36.4    Sec. 22. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; 36.5MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.36.6    Subdivision 1.TEACH.The teacher education and compensation helps program 36.7(TEACH) is established to provide tuition scholarships, education incentives, and an early 36.8childhood teacher retention program to provide retention incentives to early care and 36.9education providers. The director shall make a grant with appropriations for this purpose 36.10to a nonprofit organization licensed to administer the TEACH early childhood program.36.11    Subd. 2.Program components.(a) The nonprofit organization must use the 36.12grant for:36.13    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally 36.14recognized child development associate credential or college-level courses leading to an 36.15associate's or bachelor's degree in early childhood development and school-age care; and 36.16    (2) education incentives of a minimum of $100 to participants in the tuition 36.17scholarship program if they complete a year of working in the early care and education 36.18field.36.19    (b) Applicants for the scholarship must be employed by a licensed early childhood 36.20or child care program and working directly with children, a licensed family child care 36.21provider, or an employee in a school-age program exempt from licensing under section 36.22245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in 36.23awarding the tuition scholarships. Scholarship recipients must contribute ten percent of 36.24the total scholarship and must be sponsored by their employers, who must also contribute 36.25ten percent of the total scholarship. Scholarship recipients who are self-employed must 36.26contribute 20 percent of the total scholarship. 36.27    (c) The organization must also use the grant for teacher retention incentives of 36.28$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives 36.29must be employed by a licensed early childhood or child care program and working 36.30directly with children, a licensed family child care provider, or an employee in a 36.31school-age program exempt from licensing under section 245A.03, subdivision 2, clause 36.32(12). Lower wage earners must be given priority for the retention incentives. The amount 36.33of the retention incentive must be based on the applicant's level of education at the time of 36.34application. A provider is eligible for the retention incentive if the provider:37.1    (1) has worked in the field for at least one year and has been working at the same 37.2location for at least one year at the time of application;37.3    (2) agrees to remain in the provider's current position for a period of at least one 37.4year; and37.5    (3) has an associate's or bachelor's degree or a child development associate's degree.37.6    Subd. 3.Advisory committee.The TEACH early childhood and Minnesota early 37.7childhood teacher retention programs must have an advisory board as prescribed by the 37.8national TEACH organization.37.9    Sec. 23. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION 37.10PROGRAM.37.11    Subdivision 1.Construction Management Education Account Advisory 37.12Committee.The director must establish an advisory committee for the construction 37.13management education account. Members of the committee must include: the executive 37.14vice-president of the Minnesota Mechanical Contractors association or designee, a 37.15chapter manager of one of the Minnesota chapters of the National Electrical Contractors 37.16Association or designee, the executive director of the Associated General Contractors of 37.17Minnesota or designee, two members of the nonresidential construction industry, and a 37.18construction management program coordinator or director from an accredited construction 37.19management program in the Minnesota State Colleges and Universities. Members serve 37.20three-year terms. Advisory committee members are reimbursed for expenses related to 37.21committee activities. The director may accept funds from federal, state, or local public 37.22agencies, or from private foundations or individuals for deposit into the construction 37.23management education account under section 16B.70. All money in the account must 37.24be used for the purposes of this section.37.25    Subd. 2.Grants.Grants from the construction management education account must 37.26be used to maintain and increase the quality and availability of education programs for 37.27the construction industry by awarding grants to accredited construction management 37.28programs in the Minnesota State Colleges and Universities. Grants must be used to 37.29maintain and upgrade facilities and provide greater industry access to modern construction 37.30standards and management practices. In making grants, the director, in consultation with 37.31the committee, must:37.32    (1) confirm the qualifications of any program applying for a grant;37.33    (2) affirm applications for American Council for Construction Education 37.34accreditation and, when funds are available, award grants to complete the accreditation 37.35process;38.1    (3) promote close ties between technical and community colleges and four-year 38.2construction management programs; and 38.3    (4) support the development of new educational programs with specific emphasis on 38.4outreach to the construction industry at large.38.5    Subd. 3.Grant awards.(a) The committee may award grants to a Minnesota State 38.6Colleges and Universities institution to support construction management education and to 38.7promote outreach and continuing education in the construction industry.38.8    (b) An eligible institution must provide one of the following:38.9    (1) a bachelor of science construction management degree accredited by the 38.10American Council for Construction Education;38.11    (2) a degree with an American Council for Construction Education accredited 38.12option, including, but not limited to, Engineering Technology and Industrial Technology;38.13    (3) a bachelor of science degree program documenting placement of more than 50 38.14percent of their graduates with Minnesota nonresidential contractors; and38.15    (4) the development of a construction management curriculum to meet the American 38.16Council for Construction Education criteria.38.17    (c) Grant awards may be made as follows:38.18    (1) $3,000 per graduate during the past academic year up to a maximum of $100,000 38.19for institutions qualifying under paragraph (b), clause (1);38.20    (2) $3,000 per graduate during the past academic year up to a maximum of $100,000 38.21for institutions qualifying under paragraph (b), clause (2);38.22    (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the 38.23past academic year to a maximum of $20,000 for institutions qualifying under paragraph 38.24(b), clause (3);38.25    (4) up to $25,000 for the purpose of becoming accredited by the American Council 38.26for Construction Education for two years which may be renewed if the institution is 38.27continuing progress towards accreditation; and38.28    (5) for faculty recruitment and development in construction management programs, 38.29including support for postgraduate work leading to advanced degrees, visiting lecturer 38.30compensation and expenses, teaching assistant positions, and faculty positions; and38.31    (6) to support general classroom and laboratory operating expenses. 38.32    Grants may only be awarded from the construction management education account 38.33to the extent that funds are available. No other state funding may be provided for these 38.34grants.38.35    Subd. 4.Reports.(a) The director must annually report to the committees of the 38.36legislature responsible for higher education finance by January 15. The report must 39.1include the names of the public postsecondary educational institutions receiving grants, the 39.2amount of the grant, the purposes for each grant, the number of students served, and the 39.3number of placements made to the construction industry for the previous academic year.39.4    (b) After receiving an initial grant, the president of the public postsecondary 39.5educational institution must annually submit a report to the director listing the amount of 39.6all past grants awarded from the construction management education account and the uses 39.7of those funds. The report must be submitted with a request for a new or continuing grant 39.8and at a minimum must include the following:39.9    (1) the number of graduates placed with the Minnesota contractors during the 39.10previous academic year;39.11    (2) the expected enrollment in construction management courses in the upcoming 39.12academic year; and39.13    (3) continuing education and extension courses offered in construction management 39.14during the previous academic year and their enrollments.39.15    Subd. 5.Administration.Up to $15,000 per year from the construction 39.16management education account may be used for the administration of this program.39.17    Sec. 24. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:39.18    Subdivision 1. Scope. For purposes of sections 
         136A.15 to 
         136A.1702, the terms 39.19defined in this section have the meanings ascribed togiven them. 39.20    Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:39.21    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 39.22educational institution that either (1) is operated or regulated by this state, or the Board of 39.23Regents of the University of Minnesota; (2) is operated publicly or privately in another 39.24state, is approved by the United States Secretary of Education, and, as determined by 39.25the office, maintains academic standards substantially equal to those of comparable 39.26institutions operated in this state; (3) is licensed or registered as a postsecondary institution 39.27by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 39.28Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 39.29also includes any institution chartered in a province.39.30    Sec. 26. [136A.1704] LOAN FORGIVENESS PROGRAM FOR 39.31SPEECH-LANGUAGE PATHOLOGISTS.39.32    Subdivision 1.Creation of account.A loan forgiveness program account is 39.33established in the special revenue fund in the state treasury to promote the recruitment and 40.1retention of licensed speech-language pathologists to work with students with speech or 40.2hearing disorders. Money appropriated to this account does not cancel but is available 40.3until expended. Money in the account is appropriated to the director of the Minnesota 40.4Office of Higher Education for the purpose of this section.40.5    Subd. 2.Eligibility for loan forgiveness.A student loan administered by the 40.6Minnesota Office of Higher Education under section 136A.16, subdivision 1, may be 40.7forgiven if the recipient graduates from a postsecondary institution with a degree in 40.8speech-language pathology, becomes licensed to work with students with speech and 40.9hearing disorders as defined in Minnesota Rules, part 3525.1343, and is employed as a 40.10speech-language pathologist with primary responsibilities to work with students who are 40.11diagnosed with speech or hearing disorders.40.12    Subd. 3.Loan forgiveness.(a) To the extent of available appropriations, one-fourth 40.13of the principal of the outstanding loan amount shall be forgiven for each year of eligible 40.14employment or a pro rata amount for eligible employment during part of a school year, 40.15part-time employment, or other eligible part-time work. Loans for $2,500 or less may be 40.16forgiven at the rate of up to $1,250 per year. Employment with the following Minnesota 40.17schools and programs is eligible for determining loan forgiveness:40.18    (1) a school or program operated by a school district or a group of school districts;40.19    (2) a tribal contract school eligible to receive aid according to section 124D.83;40.20    (3) a charter school;40.21    (4) a private school;40.22    (5) a Head Start program;40.23    (6) an early childhood family education program; or40.24    (7) a program providing early intervention services to children with disabilities 40.25who have not entered kindergarten.40.26    (b) If an eligible recipient has an outstanding loan administered by the Minnesota 40.27Office of Higher Education, the duty to make payments of principal and interest may 40.28be deferred during any time period the person is enrolled at least one-half time in an 40.29advanced degree program in a field related to working with students with speech or 40.30hearing disabilities. To defer loan obligations, the person shall provide written notification 40.31to the Minnesota Office of Higher Education.40.32    (c) The Minnesota Office of Higher Education shall approve the loan forgiveness 40.33and deferral, and develop procedures to administer the program.40.34    Sec. 27. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:41.1    Subd. 3. Payments. Work-study payments shall be made to eligible students by 41.2postsecondary institutions as provided in this subdivision.41.3    (a) Students shall be selected for participation in the program by the postsecondary 41.4institution on the basis of student financial need.41.5    (b) In selecting students for participation, priority must be given to students enrolled 41.6for at least 12 credits. In each academic year, a student may be awarded work-study 41.7payments for one period of nonenrollment or less than half-time enrollment if the student 41.8will enroll on at least a half-time basis during the following academic term.41.9    (c) Students will be paid for hours actually worked and the maximum hourly rate 41.10of pay shall not exceed the maximum hourly rate of pay permitted under the federal 41.11college work-study program.41.12    (d) Minimum pay rates will be determined by an applicable federal or state law.41.13    (e) The office shall annually establish a minimum percentage rate of student 41.14compensation to be paid by an eligible employer.41.15    (f) Each postsecondary institution receiving money for state work-study grants 41.16shall make a reasonable effort to place work-study students in employment with eligible 41.17employers outside the institution. However, a public employer other than the institution 41.18may not terminate, lay off, or reduce the working hours of a permanent employee for the 41.19purpose of hiring a work-study student, or replace a permanent employee who is on layoff 41.20from the same or substantially the same job by hiring a work-study student.41.21    (g) The percent of the institution's work-study allocation provided to graduate 41.22students shall not exceed the percent of graduate student enrollment at the participating 41.23institution.41.24    (h) An institution may use up to 30 percent of its allocation for student internships 41.25with private, for-profit employers.41.26    Sec. 28. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:41.27    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 41.28to issue revenue bonds whose aggregate principal amount at any time shall not exceed 41.29$800,000,000$950,000,000 and to issue notes, bond anticipation notes, and revenue 41.30refunding bonds of the authority under the provisions of sections 
         136A.25 to 
         136A.42, 41.31to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 41.32renovating, improving, furnishing, or equipping one or more projects or parts thereof. 41.33    Sec. 29. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:42.1    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 42.2shall award grants to foster postsecondary attendance and retention by providing outreach 42.3services to historically underserved students in grades six through 12 and historically 42.4underrepresented college students. Grants must be awarded to programs that provide 42.5precollege services, including, but not limited to:42.6    (1) academic counseling;42.7    (2) mentoring;42.8    (3) fostering and improving parental involvement in planning for and facilitating a 42.9college education;42.10    (4) services for students with English as a second language;42.11    (5) academic enrichment activities;42.12    (6) tutoring;42.13    (7) career awareness and exploration;42.14    (8) orientation to college life;42.15    (9) assistance with high school course selection and information about college 42.16admission requirements; and42.17    (10) financial aid counseling.42.18    Grants shall be awarded to postsecondary institutions, professional organizations, 42.19community-based organizations, or others deemed appropriate by the director.42.20    Grants shall be awarded for one year and may be renewed for a second year with 42.21documentation to the Minnesota Office of Higher Education of successful program 42.22outcomes.42.23    Sec. 30. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:42.24    Subd. 2. Eligible students. Eligible students include students in grades six through 42.2512 who meet one or more of the following criteria:42.26    (1) are counted under section 1124(c) of the Elementary and Secondary Education 42.27Act of 1965 (Title I);42.28    (2) are eligible for free or reduced-price lunch under the National School Lunch Act;42.29    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 42.30I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or42.31    (4) are a member of a group traditionally underrepresented in higher education.42.32    Eligible undergraduate students include those who met the student eligibility criteria 42.33as 6th through 12th graders.42.34    Sec. 31. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:43.1    Subd. 3. Application process. The director of the Minnesota Office of Higher 43.2Education shall develop a grant application process. The director shall attempt to support 43.3projects in a manner that ensures that eligible students throughout the state have access 43.4to precollegeprogram services.43.5    The grant application must include, at a minimum, the following information:43.6    (1) a description of the characteristics of the students to be served reflective of the 43.7need for services listed in subdivision 1;43.8    (2) a description of the services to be provided and a timeline for implementation of 43.9the activities;43.10    (3) a description of how the services provided will foster postsecondary attendance43.11and support postsecondary retention;43.12    (4) a description of how the services will be evaluated to determine whether the 43.13program goals were met; and43.14    (5) other information as identified by the director.43.15Grant recipients must specify both program and student outcome goals, and performance 43.16measures for each goal.43.17    Sec. 32. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:43.18    Subd. 6. Program evaluation. Each grant recipient must annually submit a report 43.19to the Minnesota Office of Higher Education delineating its program and student outcome 43.20goals, and activities implemented to achieve the stated outcomes. The goals must be 43.21clearly stated and measurable. Grant recipients are required to collect, analyze, and report 43.22on participation and outcome data that enable the office to verify that the program goals 43.23were met. The office shall maintain:43.24    (1) information about successful precollege program and undergraduate student 43.25retention program activities for dissemination to individuals throughout the state interested 43.26in adopting or replicating successful program practices; and43.27    (2) data on the success of the funded projects in increasing the high school 43.28graduation and, college participation, and college graduation rates of students served 43.29by the grant recipients. The office may convene meetings of the grant recipients, as 43.30needed, to discuss issues pertaining to the implementation of precollege services and 43.31undergraduate retention programs.43.32    Sec. 33. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:43.33    Subdivision 1. Membership. The board consists of 15 17 members appointed by 43.34the governor with the advice and consent of the senate. At least one member of the board 44.1must be a resident of each congressional district. Three members must be students who are 44.2enrolled at least half time in a degree, diploma, or certificate program or have graduated 44.3from an institution governed by the board within one year of the date of appointment. The 44.4student members shall include: one member from a community college, one member from 44.5a state university, and one member from a technical college. Two members must be 44.6members of the AFL-CIO. The remaining members must be appointed to represent the 44.7state at large.44.8    Sec. 34. [136F.045] UNION MEMBER SELECTION.44.9    Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting, 44.10screening, and recommending qualified candidates for their members of the board. The 44.11AFL-CIO must develop a statement of selection criteria for board membership and a 44.12process for recommending candidates. Beginning in 2008, and every six years thereafter, 44.13the AFL-CIO must recommend four candidates for the two board positions to the governor 44.14by April 15. The governor must appoint two of the candidates to the board of trustees.44.15    Sec. 35. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:44.16    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 44.17in consultation with the commissioners of employee relations and finance, may develop 44.18policies to allow system office or campus employees on salaries, as defined in section 44.1943A.17, subdivision 1
         , to use negative time reporting in which employees report only that 44.20time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation 44.21with the commissioners of employee relations and finance, shall evaluate the use of 44.22negative time reporting and its potential for use with other state employees.44.23    Sec. 36. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:44.24    Subd. 2. Activity funds. All receipts attributable to the state colleges and 44.25universities activity funds and deposited in the state treasury are appropriated to the board 44.26and are not subject to budgetary control as exercised by the commissioner of finance.44.27    Sec. 37. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 44.28to read:44.29    Subd. 4.Banking services.Notwithstanding section 16A.27, the board shall 44.30have authority to control the amount and manner of deposit of all receipts described in 44.31this section in depositories selected by the board. The board's authority shall include 44.32specifying the considerations, financial activities, and conditions required from the 45.1depository, including the requirement of collateral security or a corporate surety bond 45.2as described in section 118A.03. The board may compensate the depository, including 45.3paying a reasonable charge to the depository, maintaining appropriate compensating 45.4balances with the depository, or purchasing non-interest-bearing certificates of deposit 45.5from the depository for performing depository-related services.45.6    Sec. 38. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:45.7    Subd. 5. Amount of matching grant. The amount of the matching grant for a 45.8beneficiary equals:45.9    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 45.10of the contributions made to the beneficiary's account during the calendar year, not to 45.11exceed $300 $400; and45.12    (2) if the beneficiary's family income is more than $50,000 but not more than 45.13$80,000, five ten percent of the sum of the contributions made to the beneficiary's account 45.14during the calendar year, not to exceed $300 $400.45.15    Sec. 39. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE 45.16AT WORTHINGTON; YMCA LEASE AGREEMENT.45.17    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter 45.18into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on 45.19the Minnesota West Community and Technical College at Worthington campus for the 45.20construction of a YMCA facility. The lease may also include the city of Worthington.45.21    (b) Siting and design of the facility must be consistent with the college's master 45.22plan and Minnesota State Colleges and Universities' building standards. Minnesota 45.23West Community and Technical College may negotiate for use of the facility for college 45.24purposes. The lease must contain a provision that the lease shall terminate if the improved 45.25property is no longer used for the partial benefit of the students at the Worthington campus.45.26    Sec. 40. INTEREST RATE SWAP AND OTHER AGREEMENTS; 45.27IMPLEMENTATION PLAN.45.28    The Minnesota Office of Higher Education must develop a plan for implementing 45.29interest rate exchanges, swaps, or other interest rate protection agreements for its student 45.30loan programs. The plan must be presented in a report to the committees of legislature 45.31responsible for higher education finance by January 15, 2008. The report must address 45.32potential contracting arrangements and options, benefits and risks associated with these 46.1agreements, and the potential impacts on the student loan program, its assets, and its 46.2objectives.46.3    Sec. 41. REPEALER.46.4(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6; 46.5135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, are repealed.46.6(b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, are repealed.46.7ARTICLE 446.8TEXTBOOK PRICING AND ACCESS46.9    Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.46.10    Subdivision 1.Short title.This section may be cited as the Textbook Disclosure, 46.11Pricing, and Access Act.46.12    Subd. 2.Purpose and intent.The purpose of this act is to ensure that every student 46.13in higher education is offered better and more timely access to affordable course materials 46.14by educating and informing faculty, students, administrators, institutions, bookstores, and 46.15publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the 46.16policy of the state of Minnesota that all involved parties must work together to identify 46.17ways to decrease the cost of course materials for students while protecting the academic 46.18freedom of faculty members to provide high-quality course materials for students. 46.19    Subd. 3.Definitions.For the purposes of this section, the following definitions 46.20have the meanings given.46.21    (1) "Bundled" means any course material packaged together to be sold for one price.46.22    (2) "Bookstore" means a store that is affiliated with a postsecondary institution or 46.23has a contract with a postsecondary institution to sell course materials to students enrolled 46.24at the postsecondary institution.46.25    (3) "Course material" means textbooks as defined in section 297A.67, subdivision 46.2613, custom course materials, and instructional materials as defined in section 297A.67, 46.27subdivision 13a, sold to students by a bookstore in a bundled or unbundled form.46.28    (4) "Custom course materials" means any combination of textbooks, course 46.29materials, or any part thereof that has been customized, produced, and sold by a distributor 46.30or publisher specifically for a specific course, program, or field of study.46.31    (5) "Distributor" means an independent contractor, including its employees or agents, 46.32that is in the business of selling, distributing, advertising, marketing, or maintaining an 46.33inventory of course materials for a postsecondary institution or bookstore.47.1    (6) "Postsecondary institution" means a Minnesota institution defined under section 47.2136A.101, subdivision 4.47.3    (7) "Publisher" means a publishing house, firm, or business, including its employees 47.4or agents, acting with authority of the publisher that publishes, sells, markets, or maintains 47.5an inventory of course materials to a postsecondary institution or bookstore.47.6    Subd. 4.Publisher disclosures.(a) Beginning January 1, 2008, a publisher or 47.7distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty 47.8member or other individual at a postsecondary institution responsible for selecting course 47.9material within seven days of a request, at least the following:47.10    (1) the title, edition, author, and International Standard Book Number (ISBN) of all 47.11course material and custom course materials, if applicable;47.12    (2) the price for the course material;47.13    (3) whether the required course material is bundled with optional material, whether 47.14it can be unbundled, and the price for each bundled and unbundled component;47.15    (4) whether the material is available in an alternative format and the cost for the 47.16alternatively formatted material; and47.17    (5) summary of revisions to requested course material for the previous edition or 47.18release for materials that have been in circulation for five years or less and a detailed 47.19breakdown of revisions must be made available in writing within seven days of the request.47.20    (b) A publisher or distributor must make all bundled course materials available to 47.21bookstores or postsecondary institutions in an unbundled form or provide written or verbal 47.22notice within seven days of a request under this subdivision if the unbundled materials are 47.23not available. 47.24    (c) A publisher or distributor must post on its Web site, include in its marketing 47.25materials, or disclose in writing when a request is made under this subdivision for the 47.26return policy for course material, including any penalties or conditions for returns.47.27    (d) Disclosure under this section is not required for mass market and trade books that 47.28are not published, marketed, or sold primarily for use in or by postsecondary institutions.47.29    Subd. 5.Payment for course material.Each postsecondary institution must adopt 47.30policies that allow students to add the costs of course material purchased at a bookstore 47.31to existing waivers or payment plans for tuition and fees. 47.32    Subd. 6.Notice to purchase.(a) An instructor shall make reasonable efforts to 47.33notify a bookstore of the final order for required and recommended course material 47.34including, but not limited to, alternative formats, previous editions, or custom course 47.35materials at least 30 days prior to the commencement of the term.48.1    (b) The bookstore must notify students of the following information concerning the 48.2required and recommended course material at least 15 days prior to the commencement of 48.3the term for which the course material is required, including, but not limited to:48.4    (1) the title, edition, author, and International Standard Book Number (ISBN) of 48.5the course material;48.6    (2) the price for the course material;48.7    (3) whether the required course material is bundled with optional material, whether 48.8it can be unbundled, and the price for each bundled and unbundled component; and48.9    (4) whether the material is available in an alternative format and the cost for the 48.10alternatively formatted material.48.11    Subd. 7.Educational strategies.(a) During the biennium ending June 30, 2009, 48.12the Minnesota Office of Higher Education shall work with postsecondary institutions 48.13to develop educational materials based upon the findings of the Minnesota Textbook 48.14Advisory Task Force recommendations and other relevant information, convene and 48.15sponsor meetings and workshops, and provide educational materials for faculty, students, 48.16administrators, institutions, bookstores, and publishers in order to educate all interested 48.17parties on strategies for reducing the costs of course materials for students attending 48.18postsecondary institutions. 48.19    (b) The Minnesota Office of Higher Education must develop and maintain a 48.20standardized request form for publisher disclosure under this section with all required 48.21information. The request form must be in an electronic format that can be downloaded 48.22from the office Web site.48.23ARTICLE 548.24PRIVATE INSTITUTIONS48.25    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:48.26136A.61 POLICY.48.27    The legislature has found and hereby declares that the availability of legitimate 48.28courses and programs leading to academic degrees offered by responsible private not for 48.29profit and for profit institutions of postsecondary education and the existence of legitimate 48.30private colleges and universities are in the best interests of the people of this state. The 48.31legislature has found and declares that the state can provide assistance and protection 48.32for persons choosing private institutions and programs, by establishing policies and 48.33procedures to assure the authenticity and legitimacy of private postsecondary education 48.34institutions and programs. The legislature has also found and declares that this same 48.35policy applies to any private and public postsecondary educational institution located in 49.1another state or country which offers or makes available to a Minnesota resident any 49.2course, program or educational activity which does not require the leaving of the state 49.3for its completion.49.4    Sec. 2. [136A.615] CITATION.49.5    Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and 49.6Out-of-State Public Postsecondary Education Act."49.7    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:49.8    Subd. 3. School. "School" means: 49.9    (1) any individual, partnership, company, firm, society, trust, association, 49.10corporation, or any combination thereof, which (a) (i) is, owns, or operates a private, 49.11nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, for 49.12profit postsecondary education institution; (iii) provides a postsecondary instructional 49.13program or course leading to a degree whether or not for profit; (c) (iv) is, owns, or 49.14operates a private, postsecondary education institution which uses the term "college", 49.15"academy", "institute" or "university" in its name; or (d) operates for profit and provides 49.16programs or courses which are intended to allow an individual to fulfill in part or totally 49.17the requirements necessary to maintain a license to practice an occupation. School shall 49.18also mean49.19    (2) any public postsecondary educational institution located in another state or 49.20country which offers or makes available to a Minnesota resident any course, program or 49.21educational activity which does not require the leaving of the state for its completion; or49.22    (3) any individual, entity, or postsecondary institution located in another state 49.23that contracts with any school located within the state of Minnesota for the purpose of 49.24providing educational programs, training programs, or awarding postsecondary credits 49.25or continuing education credits to Minnesota residents that may be applied to a degree 49.26program.49.27    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:49.28136A.63 REGISTRATION.49.29    Subdivision 1.Annual registration. All schools located within Minnesota and 49.30all schools located outside Minnesota which offer degree programs or courses within 49.31Minnesota shall register annually with the office.49.32    Subd. 2.Sale of an institution.Within 30 days of a change of ownership the school 49.33must submit a registration renewal application, all usual and ordinary information and 50.1materials for an initial registration, and applicable registration fees for a new institution. 50.2For purposes of this subdivision, "change of ownership" means a merger or consolidation 50.3with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 50.4the assets of a school; the transfer of a controlling interest of at least 51 percent of the 50.5school's stock; or a change in the not-for-profit or for profit status of a school.50.6    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:50.7136A.64 INFORMATION REQUIRED FOR REGISTRATION.50.8    Subdivision 1. Schools to provide information. As a basis for registration, schools 50.9shall provide the office with such information as the office needs to determine the nature 50.10and activities of the school, including but not limited to, requirements for admission, 50.11enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty 50.12employed. The office shall have the authority to verify the accuracy of the information 50.13submitted to it by inspection or any other means it deems necessary. the following which 50.14shall be accompanied by an affidavit attesting to its accuracy and truthfulness: 50.15    (1) articles of incorporation, constitution, bylaws, or other operating documents; 50.16    (2) a duly adopted statement of the school's mission and goals; 50.17    (3) evidence of current school or program licenses granted by departments or 50.18agencies of any state; 50.19    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate 50.20past fiscal year including any management letters provided by the independent auditor 50.21or, if the school is a public institution outside Minnesota, an income statement for the 50.22immediate past fiscal year; 50.23    (5) all current promotional and recruitment materials and advertisements; and50.24    (6) the current school catalog and, if not contained in the catalog: 50.25    (i) the members of the board of trustees or directors, if any; 50.26    (ii) the current institutional officers; 50.27    (iii) current full-time and part-time faculty with degrees held or applicable 50.28experience; 50.29    (iv) a description of all school facilities; 50.30    (v) a description of all current course offerings; 50.31    (vi) all requirements for satisfactory completion of courses, programs, and degrees; 50.32    (vii) the school's policy about freedom or limitation of expression and inquiry; 50.33    (viii) a current schedule of fees, charges for tuition, required supplies, student 50.34activities, housing, and all other standard charges; 50.35    (ix) the school's policy about refunds and adjustments; 51.1    (x) the school's policy about granting credit for prior education, training, and 51.2experience; and 51.3    (xi) the school's policies about student admission, evaluation, suspension, and 51.4dismissal. 51.5    Subd. 2. Financial records. The office shall not disclose financial records or 51.6accreditation reports provided to it by a school pursuant to this section except for the 51.7purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 51.8decision to approve or not to approve the granting of degrees or the use of a name by the 51.9school. Section 
         15.17, subdivision 4, shall not apply to such records. 51.10    Subd. 3.Additional information.If the office is unable to determine the nature 51.11and activities of a school on the basis of the information in subdivision 1, the office shall 51.12notify the school of additional information needed.51.13    Subd. 4.Verification of information.The office may verify the accuracy of 51.14submitted information by inspection, visitation, or any other means it considers necessary.51.15    Subd. 5.Public information.All information submitted to the office is public 51.16information except financial and accreditation records and information. The office may 51.17disclose financial records or information to defend its decision to approve or disapprove 51.18granting of degrees or the use of a name or its decisions to revoke the approval at a hearing 51.19under chapter 14 or other legal proceedings.51.20    Subd. 6.Late registration penalty.Applications for renewal for any registration 51.21received after the deadline date specified in the renewal materials provided by the office 51.22are subject to a late fee equal to 20 percent of the annual registration renewal fee.51.23    Subd. 7.Out-of-state expenses.A school shall reimburse the office for actual costs 51.24associated with a site evaluation visit outside Minnesota if the visit is necessary under 51.25section 136A.64, subdivision 1 or 3.51.26    Sec. 6. [136A.645] SCHOOL CLOSURE.51.27    (a) When a school decides to cease postsecondary education operations, or if its 51.28registration is refused, revoked, or suspended it must cooperate with the office in assisting 51.29students to find alternative means to complete their studies with a minimum of disruption, 51.30and inform the office of the following:51.31    (1) the planned date for termination of postsecondary education operations; 51.32    (2) the planned date for the transfer of the student records; 51.33    (3) confirmation of the name and address of the organization to receive and hold 51.34the student records; and 52.1    (4) the official at the organization receiving the student records who is designated to 52.2provide official copies of records or transcripts upon request. 52.3    (b) Upon notice from a school of its intention to cease operations, or if a school's 52.4registration is revoked, refused, or suspended, the office shall notify the school of the date 52.5on which it must cease the enrollment of students and all postsecondary educational 52.6operations.52.7    Sec. 7. [136A.646] ADDITIONAL SECURITY.52.8    In the event any registered institution is notified by the United States Department 52.9of Education that it has fallen below minimum financial standards and that its continued 52.10participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 52.11Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 52.12Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 52.13institution shall provide a surety bond conditioned upon the faithful performance of all 52.14contracts and agreements with students in a sum equal to the "letter of credit" required by 52.15the United States Department of Education in the Letter of Credit Alternative, but in no 52.16event shall such bond be less than $10,000 and not more than $250,000.52.17    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read:52.18136A.65 APPROVAL OF DEGREES AND NAME.52.19    Subdivision 1. Prohibition. No school subject to registration shall grant a degree 52.20unless such degree isand its underlying curriculum are approved by the office, nor 52.21shall any school subject to registration use the name "college," "academy," "institute" or 52.22"university" in its name without approval by the office.52.23    Subd. 1a.Accreditation; requirement.A school must not be registered or 52.24authorized to offer any degree at any level unless the school is accredited by an agency 52.25recognized by the United States Department of Education for purposes of eligibility to 52.26participate in Title IV federal financial aid programs. Any registered school undergoing 52.27institutional accreditation shall inform the office of site visits by the accrediting agency 52.28and provide office staff the opportunity to attend the visits, including any exit interviews. 52.29The institution must provide the office with a copy of the final report upon receipt.52.30    Subd. 2. Procedures. The office shall establish procedures for approval, including 52.31notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 52.32granted. If a hearing is requested, no disapproval shall take effect until after such hearing.52.33    Subd. 3. Application. A school subject to registration shall be granted approval to 52.34use the term "college," "academy," "institute" or "university" in its name whether or not it 53.1offers a program leading to a degree, if it was organized, operating and using such term in 53.2its name on or before August 1, 1975, and if it meets the other policies and standards for 53.3approval established by the office.53.4    Subd. 4.Criteria for approval.(a) A school applying to be registered and to have 53.5its degree or degrees and name approved must substantially meet the following criteria: 53.6    (1) the school has an organizational framework with administrative and teaching 53.7personnel to provide the educational programs offered;53.8    (2) the school has financial resources sufficient to meet the school's financial 53.9obligations, including refunding tuition and other charges consistent with its stated policy 53.10if the institution is dissolved, or if claims for refunds are made, to provide service to the 53.11students as promised, and to provide educational programs leading to degrees as offered;53.12    (3) the school operates in conformity with generally accepted budgeting and 53.13accounting procedures, such as the standards adopted by the National Association of 53.14College and University Business Officers, located at 1 Dupont Circle, Washington, D.C., 53.1520036;53.16    (4) the school provides an educational program leading to the degree it offers; 53.17    (5) the school provides appropriate and accessible library, laboratory, and other 53.18physical facilities to support the educational program offered;53.19    (6) the school has a policy on freedom or limitation of expression and inquiry for 53.20faculty and students which is published or available on request; 53.21    (7) the school uses only publications and advertisements which are truthful and do 53.22not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 53.23school, its personnel, programs, services, or occupational opportunities for its graduates 53.24for promotion and student recruitment;53.25    (8) the school's compensated recruiting agents who are operating in Minnesota 53.26identify themselves as agents of the school when talking to or corresponding with students 53.27and prospective students; and53.28    (9) the school provides information to students and prospective students concerning: 53.29    (i) comprehensive and accurate policies relating to student admission, evaluation, 53.30suspension, and dismissal; 53.31    (ii) clear and accurate policies relating to granting credit for prior education, training, 53.32and experience and for courses offered by the school; 53.33    (iii) current schedules of fees, charges for tuition, required supplies, student 53.34activities, housing, and all other standard charges; 53.35    (iv) policies regarding refunds and adjustments for withdrawal or modification 53.36of enrollment status; and 54.1    (v) procedures and standards used for selection of recipients and the terms of 54.2payment and repayment for any financial aid program.54.3    (b) An application for degree approval must also include: 54.4    (i) title of degree and formal recognition awarded; 54.5    (ii) location where such degree will be offered; 54.6    (iii) proposed implementation date of the degree; 54.7    (iv) admissions requirements for the degree; 54.8    (v) length of the degree; 54.9    (vi) projected enrollment for a period of five years; 54.10    (vii) the curriculum required for the degree, including course syllabi or outlines; 54.11    (viii) statement of academic and administrative mechanisms planned for monitoring 54.12the quality of the proposed degree; 54.13    (ix) statement of satisfaction of professional licensure criteria, if applicable; 54.14    (x) documentation of the availability of clinical, internship, externship, or practicum 54.15sites, if applicable; and 54.16    (xi) statement of how the degree fulfills the institution's mission and goals, 54.17complements existing degrees, and contributes to the school's viability.54.18    Subd. 5.Requirements for degree approval.For each degree a school offers to a 54.19student, where the student does not leave Minnesota for the major portion of the program 54.20or course leading to the degree, the school must have: 54.21    (1) qualified teaching personnel to provide the educational programs for each degree 54.22for which approval is sought; 54.23    (2) appropriate educational programs leading to each degree for which approval 54.24is sought; 54.25    (3) appropriate and accessible library, laboratory, and other physical facilities to 54.26support the educational program for each degree for which approval is sought; and 54.27    (4) a rationale showing that degree programs are consistent with the school's mission 54.28and goals.54.29    Subd. 6.Name.A school may use the term "academy" or "institute" in its name 54.30without meeting any additional requirements. A school may use the term "college" in its 54.31name if it offers at least one program leading to an associate degree. A school may use 54.32the term "university" in its name if it offers at least one program leading to a master's 54.33or doctorate degree.54.34    Subd. 7.Grandfathered names.Names used before August 1, 2007, by a school, 54.35organized, operating, and using the term "academy," "institute," "college," or "university" 55.1in its name on or before August 1, 2007, may continue using such term whether or not it 55.2offers a program leading to a degree.55.3    Subd. 8.Conditional approval.The office may grant conditional approval for a 55.4degree or use of a term in its name for a period of less than one year if doing so would be 55.5in the best interests of currently enrolled students or prospective students.55.6    Subd. 9.Disapproval of registration appeal.If a school's degree or use of a term 55.7in its name is disapproved by the office, the school may request a hearing under chapter 55.814. The request must be in writing and made to the office within 30 days of the date 55.9the school is notified of the disapproval. 55.10    (a) The office may refuse to renew, revoke, or suspend registration, approval of 55.11a school's degree, or use of a regulated term in its name by giving written notice and 55.12reasons to the school. The school may request a hearing under chapter 14. If a hearing is 55.13requested, no revocation or suspension shall take effect until after the hearing. 55.14    (b) Reasons for revocation or suspension of registration or approval may be for one 55.15or more of the following reasons: 55.16    (1) violating the provisions of sections 136A.615 to 136A.71; 55.17    (2) providing false, misleading, or incomplete information to the office; 55.18    (3) presenting information about the school which is false, fraudulent, misleading, 55.19deceptive, or inaccurate in a material respect to prospective students; or 55.20    (4) refusing to allow reasonable inspection or to supply reasonable information after 55.21a written request by the office has been received.55.22    Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read:55.23136A.653 EXEMPTIONS.55.24    Subdivision 1. Exemption. A school that is subject to licensing by the office under 55.25chapter 141, is exempt from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 55.26The determination of the office as to whether a particular school is subject to regulation 55.27under chapter 141 is final for the purposes of this exemption. 55.28    Subd. 2. Educational program; nonprofit organizations. Educational programs 55.29which are sponsored by a bona fide and nonprofit trade, labor, business, professional 55.30or fraternal organization, which programs are conducted solely for that organization's 55.31membership or for the members of the particular industries or professions served by that 55.32organization, and which are not available to the public on a fee basis, are exempted from 55.33the provisions of sections 
         136A.61136A.615 to 
         136A.71. 55.34    Subd. 3. Educational program; business firms. Educational programs which are 55.35sponsored by a business firm for the training of its employees or the employees of other 56.1business firms with which it has contracted to provide educational services at no cost to the 56.2employees are exempted from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 56.3    Subd. 4. Voluntary submission. Any school or program exempted from the 56.4provisions of sections 
         136A.61136A.615 to 
         136A.71 by the provisions of this section 56.5may voluntarily submit to the provisions of those sections. 56.6    Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read:56.7136A.657 EXEMPTION; RELIGIOUS SCHOOLS.56.8    Subdivision 1. Exemption. Any school or any department or branch of a school (a) 56.9which is substantially owned, operated or supported by a bona fide church or religious 56.10organization; (b) whose programs are primarily designed for, aimed at and attended by 56.11persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 56.12church or religious organization; and (c) whose programs are primarily intended to prepare 56.13its students to become ministers of, to enter into some other vocation closely related to, or 56.14to conduct their lives in consonance with, the particular faith of that church or religious 56.15organization, is exempt from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 56.16    Subd. 2. Limitation. This exemption shall not extend to any school or to any 56.17department or branch of a school which through advertisements or solicitations represents 56.18to any students or prospective students that the school, its aims, goals, missions or 56.19purposes or its programs are different from those described in subdivision 1. This 56.20exemption shall not extend to any school which represents to any student or prospective 56.21student that the major purpose of its programs is to prepare the student for a vocation not 56.22closely related to that particular religious faith, or to provide the student with a general 56.23educational program recognized by other schools or the broader educational, business or 56.24social community as being substantially equivalent to the educational programs offered 56.25by schools or departments or branches of schools which are not exempt from sections 56.26136A.61136A.615 to 
         136A.71, and rules adopted pursuant thereto. 56.27    Subd. 3. Scope. Nothing in sections 
         136A.61136A.615 to 
         136A.71, or the rules 56.28adopted pursuant thereto, shall be interpreted as permitting the office to determine the 56.29truth or falsity of any particular set of religious beliefs. 56.30    Subd. 4.Statement required; religious nature.Any degree awarded upon 56.31completion of a religiously exempt program shall include descriptive language to make 56.32the religious nature of the award clear.56.33    Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:56.34136A.66 LIST.57.1    The office shall maintain a list of schools registered institutions authorized to grant 57.2degrees and schools authorized to use the name "college," "academy," "institute" or 57.3"university," and shall make such list available to the public.57.4    Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:57.5136A.67 UNAUTHORIZED REPRESENTATIONS.57.6    No school and none of its officials or employees shall advertise or represent in any 57.7manner that such school is approved or accredited by the office or state of Minnesota 57.8except that any A school which is duly registered with the office, or any of its officials or 57.9employees, may represent in advertising and shall disclose in catalogues, applications, 57.10and enrollment materials that the school is registered with the office. by prominently 57.11displaying the following statement: "(Name of school) is registered as a private institution 57.12with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71. 57.13Registration is not an endorsement of the institution. Credits earned at the institution 57.14may not transfer to all other institutions."57.15    Sec. 13. [136A.675] RISK ANALYSIS.57.16    The office shall develop a set of financial and programmatic evaluation metrics to 57.17aid in the detection of the failure or potential failure of a school to meet the standards 57.18established under sections 136A.61 to 136A.71. These metrics shall include indicators 57.19of financial stability, changes in the senior management or the financial aid and senior 57.20administrative staff of an institution, changes in enrollment, changes in program offerings, 57.21and changes in faculty staffing patterns. The development of financial standards shall use 57.22industry standards as benchmarks. The development of the nonfinancial standards shall 57.23include a measure of trends and dramatic changes in trends or practice. The agency must 57.24specify the metrics and standards for each area and provide a copy to each registered 57.25institution and post them on the agency Web site. The agency shall use regularly reported 57.26data submitted to the federal government or other regulatory or accreditation agencies 57.27wherever possible. The agency may require more frequent data reporting by an institution 57.28to ascertain whether the standards are being met.57.29    Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read:57.30136A.68 RECORDS.57.31    After August 1, 1975, all schools located in this state must maintain permanent 57.32records of all students enrolled therein at any time. The office may require schools to 57.33provide a plan acceptable to the office for preserving all such records for at least ten years. 58.1The office may require that such plan include the filing of a continuous surety bond or a 58.2deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving 58.3records after such school ceases to exist. A registered school shall maintain a permanent 58.4record for each student for 50 years from the last date of the student's attendance. A 58.5registered school offering distance instruction to a student located in Minnesota shall 58.6maintain a permanent record for each Minnesota student for 50 years from the last date of 58.7the student's attendance. Records include a student's academic transcript, documents, and 58.8files containing student data about academic credits earned, courses completed, grades 58.9awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 58.10school shall submit a plan that meets the following requirements: 58.11    (1) at least one copy of the records must be held in a secure, fireproof depository 58.12or duplicate records must be maintained off site in a secure location and in a manner 58.13approved by the office; 58.14    (2) an appropriate official must be designated to provide a student with copies of 58.15records or a transcript upon request; 58.16    (3) an alternative method approved by the office of complying with clauses (1) and 58.17(2) must be established if the school ceases to exist; and 58.18    (4) if the school has no binding agreement approved by the office for preserving 58.19student records, a continuous surety bond must be filed with the office in an amount not to 58.20exceed $20,000. The bond shall run to the state of Minnesota.58.21    Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read:58.22136A.69 FEES.58.23    Subdivision 1.Registration fees. The office shall collect reasonable registration 58.24fees that are sufficient to recover, but do not exceed, its costs of administering the 58.25registration program. The office shall charge $1,100 for initial registration fees and $950 58.26for annual renewal fees.58.27    Subd. 2.Degree level addition fee.The office processing fee for adding a degree 58.28level to an existing program is $2,000 per program.58.29    Subd. 3.Program addition fee.The office processing fee for adding a program 58.30that represents a significant departure in the objectives, content, or method of delivery of 58.31programs that are currently offered by the school is $500 per program.58.32    Subd. 4.Visit or consulting fee.If the office determines that a fact-finding visit 58.33or outside consultant is necessary to review or evaluate any new or revised program, the 58.34office shall be reimbursed for the expenses incurred related to the review as follows: 59.1    (1) $300 for the team base fee or for a paper review conducted by a consultant if the 59.2office determines that a fact-finding visit is not required; 59.3    (2) $300 for each day or part thereof on site per team member; and 59.4    (3) the actual cost of customary meals, lodging, and related travel expenses incurred 59.5by team members.59.6    Subd. 5.Modification fee.The fee for modification of any existing program is 59.7$100 and is due if there is: 59.8    (1) an increase or decrease of 25 percent or more from the original date of program 59.9approval, in clock hours, credit hours, or calendar length of an existing program; 59.10    (2) a change in academic measurement from clock hours to credit hours or vice 59.11versa; or 59.12    (3) an addition or alteration of courses that represent a 25 percent change or more in 59.13the objectives, content, or methods of delivery.59.14    Sec. 16. [136A.705] PENALTY.59.15    The director may assess fines for violations of a provision of sections 136A.615 to 59.16136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71 59.17shall be a separate violation and fines shall not exceed $500 per day per violation. 59.18Amounts received under this section must be deposited in the special revenue fund and are 59.19appropriated for the purposes in sections 136A.615 to 136A.71.59.20    Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read:59.21136A.71 INJUNCTION.59.22    Upon application of the attorney general the district courts shall have jurisdiction to 59.23enjoin any violations of sections 
         136A.61136A.615 to 
         136A.71. 59.24    Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:59.25    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or 59.26"office" means the Minnesota Office of Higher Education.59.27    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:59.28    Subd. 5. School. "School" means any person, within or outside the state, who 59.29maintains, advertises, administers, solicits for, or conducts any program for profit at 59.30any less than an associate degree level other than baccalaureate or graduate programs, 59.31and is not specifically exempted by sections 141.21 toand is not registered as a private 60.1institution under sections 136A.615 to 136A.71 and is not specifically exempted by 60.2section 141.35 or 141.37. 60.3    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:60.4    Subdivision 1. Required. A school must not maintain, advertise, solicit for, 60.5administer, or conduct any program in Minnesota without first obtaining a license from 60.6the office.60.7    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:60.8    Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 60.9conducts, solicits for, or advertises within the state of Minnesota any program, unless the 60.10applicant files with the office a continuous corporate surety bond written by a company 60.11authorized to do business in Minnesota conditioned upon the faithful performance of all 60.12contracts and agreements with students made by the applicant.60.13    (b) The amount of the surety bond shall be ten percent of the preceding year's gross 60.14income from student tuition, fees, and other required institutional charges, but in no event 60.15less than $10,000 nor greater than $250,000, except that a school may deposit a greater 60.16amount at its own discretion. A school in each annual application for licensure must 60.17compute the amount of the surety bond and verify that the amount of the surety bond 60.18complies with this subdivision, unless the school maintains a surety bond equal to at least 60.19$250,000. A school that operates at two or more locations may combine gross income 60.20from student tuition, fees, and other required institutional charges for all locations for the 60.21purpose of determining the annual surety bond requirement. The gross tuition and fees 60.22used to determine the amount of the surety bond required for a school having a license for 60.23the sole purpose of recruiting students in Minnesota shall be only that paid to the school 60.24by the students recruited from Minnesota.60.25    (c) The bond shall run to the state of Minnesota and to any person who may have a 60.26cause of action against the applicant arising at any time after the bond is filed and before it 60.27is canceled for breach of any contract or agreement made by the applicant with any student. 60.28The aggregate liability of the surety for all breaches of the conditions of the bond shall not 60.29exceed the principal sum deposited by the school under paragraph (b). The surety of any 60.30bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 60.31of liability for any breach of condition occurring after the effective date of cancellation.60.32    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 60.33sum equal to the amount of the required surety bond in cash, or securities as may be 61.1legally purchased by savings banks or for trust funds in an aggregate market value equal 61.2to the amount of the required surety bond.61.3    (e) Failure of a school to post and maintain the required surety bond or deposit under 61.4paragraph (d) may shall result in denial, suspension, or revocation of the school's license.61.5    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:61.6    Subd. 7. Minimum standards. A license shall be issued if the office first 61.7determines:61.8    (1) that the applicant has a sound financial condition with sufficient resources 61.9available to:61.10    (i) meet the school's financial obligations;61.11    (ii) refund all tuition and other charges, within a reasonable period of time, in the 61.12event of dissolution of the school or in the event of any justifiable claims for refund against 61.13the school by the student body;61.14    (iii) provide adequate service to its students and prospective students; and61.15    (iv) maintain and support the school;61.16    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 61.17and the necessary number of work stations to prepare adequately the students currently 61.18enrolled, and those proposed to be enrolled;61.19    (3) that the applicant employs a sufficient number of qualified teaching personnel to 61.20provide the educational programs contemplated;61.21    (4) that the school has an organizational framework with administrative and 61.22instructional personnel to provide the programs and services it intends to offer;61.23    (5) that the premises and conditions under which the students work and study are 61.24sanitary, healthful, and safe, according to modern standards;61.25    (6) that the quality and content of each occupational course or program of study 61.26provides education and adequate preparation to enrolled students for entry level positions 61.27in the occupation for which prepared;61.28    (7) that the living quarters which are owned, maintained, recommended, or approved 61.29by the applicant for students are sanitary and safe;61.30    (8) that the contract or enrollment agreement used by the school complies with 61.31the provisions in section 
         141.265; 61.32    (9) that contracts and agreements do not contain a wage assignment provision or a 61.33confession of judgment clause; and62.1    (10) that there has been no adjudication of fraud or misrepresentation in any 62.2criminal, civil, or administrative proceeding in any jurisdiction against the school or its 62.3owner, officers, agents, or sponsoring organization.62.4    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:62.5    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 62.6a school, the school shall furnish to the office a catalog, brochure, or electronic display 62.7including:62.8    (1) identifying data, such as volume number and date of publication;62.9    (2) name and address of the school and its governing body and officials;62.10    (3) a calendar of the school showing legal holidays, beginning and ending dates of 62.11each course quarter, term, or semester, and other important dates;62.12    (4) the school policy and regulations on enrollment including dates and specific 62.13entrance requirements for each program;62.14    (5) the school policy and regulations about leave, absences, class cuts, make-up 62.15work, tardiness, and interruptions for unsatisfactory attendance;62.16    (6) the school policy and regulations about standards of progress for the student 62.17including the grading system of the school, the minimum grades considered satisfactory, 62.18conditions for interruption for unsatisfactory grades or progress, a description of any 62.19probationary period allowed by the school, and conditions of reentrance for those 62.20dismissed for unsatisfactory progress;62.21    (7) the school policy and regulations about student conduct and conditions for 62.22dismissal for unsatisfactory conduct;62.23    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 62.24activities, laboratory fees, service charges, rentals, deposits, and all other charges;62.25    (9) the school policy and regulations, including an explanation of section 
         141.271, 62.26about refunding tuition, fees, and other charges if the student does not enter the program, 62.27withdraws from the program, or the program is discontinued;62.28    (10) a description of the available facilities and equipment;62.29    (11) a course outline syllabus for each course offered showing course objectives, 62.30subjects or units in the course, type of work or skill to be learned, and approximate time, 62.31hours, or credits to be spent on each subject or unit;62.32    (12) the school policy and regulations about granting credit for previous education 62.33and preparation;62.34    (13) a notice to students relating to the transferability of any credits earned at the 62.35school to other institutions; 63.1    (14) a procedure for investigating and resolving student complaints; and63.2    (14) (15) the name and address of the Minnesota Office of Higher Education.63.3    A school that is exclusively a distance education school is exempt from clauses 63.4(3) and (5).63.5    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:63.6    Subd. 10. Placement records. (a) Before a license is issued reissued to a school 63.7that offers, advertises or implies a placement service, the school shall file with the office 63.8for the past year and thereafter at reasonable intervals determined by the office, a certified 63.9copy of the school's placement record, containing a list of graduates, a description of their 63.10jobs, names of their employers, and other information as the office may prescribe.63.11    (b) Each school that offers a placement service shall furnish to each prospective 63.12student, upon request, prior to enrollment, written information concerning the percentage 63.13of the previous year's graduates who were placed in the occupation for which prepared or 63.14in related employment.63.15    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:63.16    Subd. 12. Permanent records. A school licensed under this chapter and located 63.17in Minnesota shall maintain a permanent record for each student for 50 years from the 63.18last date of the student's attendance. A school licensed under this chapter and offering 63.19distance instruction to a student located in Minnesota shall maintain a permanent record 63.20for each Minnesota student for 50 years from the last date of the student's attendance. 63.21Records include school transcripts, documents, and files containing student data about 63.22academic credits earned, courses completed, grades awarded, degrees awarded, and 63.23periods of attendance. To preserve permanent records, a school shall submit a plan that 63.24meets the following requirements:63.25    (1) at least one copy of the records must be held in a secure, fireproof depository;63.26    (2) an appropriate official must be designated to provide a student with copies of 63.27records or a transcript upon request;63.28    (3) an alternative method, approved by the office, of complying with clauses (1) and 63.29(2) must be established if the school ceases to exist; and63.30    (4) a continuous surety bond must be filed with the office in an amount not to exceed 63.31$20,000 if the school has no binding agreement approved by the office, for preserving 63.32student records or a trust must be arranged if the school ceases to exist. The bond shall run 63.33to the state of Minnesota.64.1    Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:64.2    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 64.3renewal licensure application is:64.4    (1) for a category A school, as determined by the office, the fee is $865 if the school 64.5offers one program or $1,150 if the school offers two or more programs; and64.6    (2) for a category B or C school, as determined by the office, the fee is $430 if the 64.7school offers one program or $575 if the school offers two or more programs.64.8    (b) If a license renewal application is not received by the office by the close of 64.9business at least 60 days before the expiration of the current license, a late fee of $100 64.10per business day, not to exceed $3,000, shall be assessed.64.11    Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:64.12    Subd. 2. Contract information. A contract or enrollment agreement used by a 64.13school must include at least the following:64.14    (1) the name and address of the school, clearly stated;64.15    (2) a clear and conspicuous disclosure that the agreement is a legally binding 64.16instrument upon written acceptance of the student by the school unless canceled under 64.17section 
         141.271; 64.18    (3) the school's cancellation and refund policy that shall be clearly and conspicuously 64.19entitled "Buyer's Right to Cancel";64.20    (4) a clear statement of total cost of the program including tuition and all other 64.21charges;64.22    (5) the name and description of the program, including the number of hours or 64.23credits of classroom instruction, or distance instruction, that shall be included; and64.24    (6) a clear and conspicuous explanation of the form and means of notice the student 64.25should use in the event the student elects to cancel the contract or sale, the effective 64.26date of cancellation, and the name and address of the seller to which the notice should 64.27be sent or delivered.64.28The contract or enrollment agreement must not include a wage assignment provision or a 64.29confession of judgment clause.64.30    Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:64.31    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 64.32on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 64.33carried, it shall occur on the date the notice is delivered to the school. If a student has not 64.34attended classes class for a period of 21 consecutive days without contacting the school to 65.1indicate an intent to continue in school or otherwise making arrangements concerning the 65.2absence, the student is considered to have withdrawn from school for all purposes as of 65.3the student's last documented date of attendance.65.4    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:65.5    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 65.6promissory instrument received as payment of tuition or other charge prior to completion 65.7of 50 percent of the program., except that prior to that time, instruments may be transferred 65.8by assignment to purchasers who shall be subject to all defenses available against the 65.9school named as payee.65.10    Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:65.11    Subdivision 1. Not to advertise state approval Disclosure required.Schools, 65.12agents of schools, and solicitors may not advertise or represent in writing or orally that 65.13such school is approved or accredited by the state of Minnesota, except that any A65.14school, agent, or solicitor may advertiserepresent in advertisements and shall disclose 65.15in catalogues, applications, and enrollment materials that the school and solicitor have 65.16been is duly licensed by the state using by prominently displaying the following language65.17statement:65.18"(Name of school) is licensed as a private career school with the Minnesota Office of 65.19Higher Education. Licensure is not an endorsement of the institution. Credits earned at the 65.20institution may not transfer to all other institutions. The educational programs may not 65.21meet the needs of every student or employer."65.22    Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read:65.23141.32 PENALTY.65.24    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure 65.25to comply with this chapter shall be a separate violation. The office shall adopt rules 65.26establishing a list of civil penalties and the fine associated with each violation. Fines for 65.27violations shall not exceed $500 per day per violation. The director may assess fines for 65.28violations of a provision of this chapter. Each day's failure to comply with a provision 65.29of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed 65.30$500 per day per violation. Amounts received under this section must be deposited in the 65.31special revenue fund and are appropriated for the purposes of this chapter.66.1    Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read:66.2141.35 EXEMPTIONS.66.3    Sections 
         141.21 to 
         141.35 141.32 shall not apply to the following:66.4    (1) public postsecondary institutions;66.5    (2) private postsecondary institutions registered under sections 
         136A.61136A.615 66.6to 
         136A.71that are nonprofit, or that are for profit and registered under sections 136A.6166.7to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate 66.8or postbaccalaureate programs;66.9    (3) schools of nursing accredited by the state Board of Nursing or an equivalent 66.10public board of another state or foreign country;66.11    (4) private schools complying with the requirements of section 
         120A.22, subdivision 66.124
         ;66.13    (5) courses taught to students in a valid apprenticeship program taught by or 66.14required by a trade union;66.15    (6) schools exclusively engaged in training physically or mentally disabled persons 66.16for the state of Minnesota;66.17    (7) schools licensed by boards authorized under Minnesota law to issue licenses;66.18    (8) schools and educational programs, or training programs, contracted for by 66.19persons, firms, corporations, government agencies, or associations, for the training of their 66.20own employees, for which no fee is charged the employee;66.21    (9) schools engaged exclusively in the teaching of purely avocational, recreational, 66.22or remedial subjects as determined by the office;66.23    (10) driver training schools and instructors as defined in section 171.33, subdivisions 66.241 and 2;66.25    (11) classes, courses, or programs conducted by a bona fide trade, professional, or 66.26fraternal organization, solely for that organization's membership;66.27    (12) (11) programs in the fine arts provided by organizations exempt from taxation 66.28under section 
         290.05 and registered with the attorney general under chapter 309. For 66.29the purposes of this clause, "fine arts" means activities resulting in artistic creation or 66.30artistic performance of works of the imagination which are engaged in for the primary 66.31purpose of creative expression rather than commercial sale or employment. In making 66.32this determination the office may seek the advice and recommendation of the Minnesota 66.33Board of the Arts;66.34    (13) (12) classes, courses, or programs intended to fulfill the continuing education 66.35requirements for licensure or certification in a profession, that have been approved by 66.36a legislatively or judicially established board or agency responsible for regulating the 67.1practice of the profession, and that are offered exclusively to an individual practicing 67.2the profession;67.3    (14) (13) classes, courses, or programs intended to prepare students to sit for 67.4undergraduate, graduate, postgraduate, or occupational licensing and occupational 67.5entrance examinations;67.6    (15) (14) classes, courses, or programs providing 16 or fewer clock hours of 67.7instruction that are not part of the curriculum for an occupation or entry level employment;67.8    (16) (15) classes, courses, or programs providing instruction in personal 67.9development, modeling, or acting;67.10    (17) (16) training or instructional programs, in which one instructor teaches an 67.11individual student, that are not part of the curriculum for an occupation or are not intended 67.12to prepare a person for entry level employment; and67.13    (18) (17) schools with no physical presence in Minnesota, as determined by the 67.14office, engaged exclusively in offering distance instruction that are located in and 67.15regulated by other states or jurisdictions.67.16    Sec. 33. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.67.17    Subdivision 1.Exemption.Any school or any department or branch of a school: 67.18    (1) which is substantially owned, operated, or supported by a bona fide church 67.19or religious organization; 67.20    (2) whose programs are primarily designed for, aimed at, and attended by persons 67.21who sincerely hold or seek to learn the particular religious faith or beliefs of that church or 67.22religious organization; and 67.23    (3) whose programs are primarily intended to prepare its students to become 67.24ministers of, to enter into some other vocation closely related to, or to conduct their lives 67.25in consonance with the particular faith of that church or religious organization,67.26is exempt from the provisions of sections 141.21 to 141.32.67.27    Subd. 2.Limitations.(a) An exemption shall not extend to any school, department 67.28or branch of a school, or program of a school which through advertisements or solicitations 67.29represents to any students or prospective students that the school, its aims, goals, missions, 67.30purposes, or programs are different from those described in subdivision 1.67.31    (b) An exemption shall not extend to any school which represents to any student or 67.32prospective student that the major purpose of its programs is to:67.33    (1) prepare the student for a vocation not closely related to that particular religious 67.34faith; or68.1    (2) provide the student with a general educational program recognized by other 68.2schools or the broader educational, business, or social community as being substantially 68.3equivalent to the educational programs offered by schools or departments or branches of 68.4schools which are not religious in nature and are not exempt from chapter 141 and from 68.5rules adopted pursuant under this chapter.68.6    Subd. 3.Scope.Nothing in this chapter or the rules adopted under it shall be 68.7interpreted as permitting the office to determine the truth or falsity of any particular set 68.8of religious beliefs.68.9    Subd. 4.Descriptive language required.Any certificate, diploma, degree, or other 68.10formal recognition awarded upon completion of any religiously exempt program shall 68.11include such descriptive language as to make the religious nature of the award clear.68.12    Sec. 34. EFFECTIVE DATE; TRANSITION PROCESS.68.13    Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71, 68.14shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes, 68.15chapter 141, that qualify for private institution registration after July 1, 2007, shall apply 68.16for and complete the process for registration prior to the expiration of their current private 68.17career school license. Schools currently registered as private institutions pursuant to 68.18Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private 68.19career school license after August 1, 2007, shall apply for and complete the process for 68.20licensure prior to the expiration of the current registration, but in any event no later than 68.21December 31, 2007. The office is authorized to extend existing license or registration for a 68.22reasonable period of time to allow for the completion of the new processes when necessary.68.23ARTICLE 668.24JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

68.25Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.

68.26    The amounts shown in this section summarize direct appropriations, by fund, made 68.27in this article.

68.2820082009Total68.29General$ 94,435,000$ 60,084,000$154,519,00068.30Workforce Development14,935,00014,951,00029,886,00068.31Remediation700,000700,0001,400,00068.3268.33State Government Special Revenue1,877,0001,925,0003,802,00068.34Workers' Compensation  23,379,000 23,763,00047,142,00068.35Total$ 135,326,000$ 101,423,000$236,749,000

69.1Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

69.2    The sums shown in the columns marked "Appropriations" are appropriated to the 69.3agencies and for the purposes specified in this article. The appropriations are from the 69.4general fund, or another named fund, and are available for the fiscal years indicated 69.5for each purpose. The figures "2008" and "2009" used in this article mean that the 69.6appropriations listed under them are available for the fiscal year ending June 30, 2008, or 69.7June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 69.8year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 69.9year ending June 30, 2007, are effective the day following final enactment.

69.10APPROPRIATIONS69.11Available for the Year69.12Ending June 3069.1320082009

69.1469.15Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

69.16Subdivision 1.Total Appropriation$ 100,762,000$66,014,000

69.17Appropriations by Fund69.182008200969.19General 85,892,00051,144,00069.20Remediation700,000700,00069.2169.22Workforce Development14,170,00014,170,000

69.23The amounts that may be spent for each 69.24purpose are specified in the following 69.25subdivisions.

69.2669.27Subd. 2.Business and Community Development 48,868,000 14,372,000

69.28Appropriations by Fund69.29General 48,168,00013,672,00069.30Remediation700,000700,000

69.31(a)(1) $1,100,000 is for a grant under 69.32Minnesota Statutes, section 116J.421, 69.33to the Rural Policy and Development 69.34Center at St. Peter, Minnesota. The grant 69.35shall be used for research and policy 69.36analysis on emerging economic and social 70.1issues in rural Minnesota, to serve as a 70.2policy resource center for rural Minnesota 70.3communities, to encourage collaboration 70.4across higher education institutions, to 70.5provide interdisciplinary team approaches 70.6to research and problem-solving in rural 70.7communities, and to administer overall 70.8operations of the center. 70.9(2) The grant shall be provided upon the 70.10condition that each state-appropriated 70.11dollar be matched with a nonstate dollar. 70.12Acceptable matching funds are nonstate 70.13contributions that the center has received and 70.14have not been used to match previous state 70.15grants. Any funds not spent the first year are 70.16available the second year. 70.17(b) $200,000 each year is for a grant to 70.18WomenVenture for women's business 70.19development programs.70.20(c) $500,000 the first year is for a grant to 70.21University Enterprise Laboratories (UEL) 70.22for its direct and indirect expenses to support 70.23efforts to encourage the growth of early-stage 70.24and emerging bioscience companies. UEL 70.25must provide a report by June 30 each year 70.26to the commissioner on the expenditures 70.27until the appropriation is expended. This is a 70.28onetime appropriation and is available until 70.29expended.70.30(d) $1,990,000 the first year is for grants 70.31under Minnesota Statutes, section 116J.571, 70.32for the redevelopment grant program. This is 70.33a onetime appropriation.70.34(e) $100,000 each year is to the Public 70.35Facilities Authority for the small community 71.1wastewater treatment program under 71.2Minnesota Statutes, chapter 446A.71.3(f) $510,000 the first year is for the urban 71.4initiative program under Minnesota Statutes, 71.5chapter 116M, of which, $255,000 is for 71.6a grant to the Metropolitan Economic 71.7Development Association for continuing 71.8minority business development programs 71.9in the metropolitan area. This is a onetime 71.10appropriation.71.11(g) $85,000 each year is for a grant to the 71.12Minnesota Inventors Congress, of which 71.13$10,000 must be used for youth inventors.71.14(h) $151,000 the first year is for a grant to the 71.15city of Faribault to design, construct, furnish, 71.16and equip renovations to accommodate 71.17handicapped accessibility at the Paradise 71.18Center for the Arts.71.19(i) $3,000,000 the first year is for loans 71.20authorized under Minnesota Statutes, section 71.21116J.417. This appropriation is available 71.22until expended.71.23(j) $1,000,000 each year is to Minnesota 71.24Technology, Inc. for the small business 71.25growth acceleration program established 71.26under Minnesota Statutes, section 116O.115. 71.27This is a onetime appropriation.71.28(k) $350,000 the first year is for a grant to 71.29the city of Northome for the construction 71.30of a new municipal building to replace the 71.31structures damaged by fire on July 22, 2006. 71.32This appropriation is available when the 71.33commissioner determines that a sufficient 71.34match is available from nonstate sources to 71.35complete the project.72.1(l) $325,000 each year is for a technology 72.2and commercialization unit established 72.3under article 7, section 32. This is a onetime 72.4appropriation.72.5(m) $500,000 in the first year is for a 72.6grant to the city of Worthington for an 72.7agricultural-based bioscience training and 72.8testing center. Funds appropriated under this 72.9section must be used to provide a training 72.10and testing facility for incubator firms 72.11developing new agricultural processes and 72.12products. This is a onetime appropriation 72.13and is available until expended.72.14(n) $2,200,000 in the first year is for a grant 72.15to BioBusiness Alliance of Minnesota for 72.16bioscience business development programs 72.17to promote and position the state as a global 72.18leader in bioscience business activities. 72.19These funds may be used for:72.20(1) completion and periodic updating of 72.21a statewide bioscience business industry 72.22assessment of business technology 72.23enterprises and Minnesota's competitive 72.24position employing annual updates to federal 72.25industry classification data;72.26(2) long-term strategic planning that includes 72.27projections of market changes resulting 72.28from developments in biotechnology and the 72.29development of 20-year goals, strategies, and 72.30identified objectives for renewable energy, 72.31medical devices, biopharma, and biologics 72.32business development in Minnesota;72.33(3) the design and construction of a 72.34Minnesota focused bioscience business 72.35model to test competing strategies and 73.1scenarios, evaluate options, and forecast 73.2outcomes; and73.3(4) creation of a bioscience business 73.4resources network that includes development 73.5of a statewide bioscience business economic 73.6development framework to encourage 73.7bioscience business development and 73.8encourage spin-off activities, attract 73.9bioscience business location or expansion in 73.10Minnesota, and establish a local capability to 73.11support strategic system level planning for 73.12industry, government, and academia.73.13This appropriation is available until June 30, 73.142009.73.15(o) $325,000 is for a grant to the Walker 73.16Area Community Center, Inc., to construct, 73.17furnish, and equip the Walker Area 73.18Community Center. This appropriation is 73.19not available until the commissioner has 73.20determined that an amount sufficient to 73.21complete the project has been committed 73.22from nonstate sources.73.23(p) $120,000 the first year is for a grant 73.24to the Pine Island Economic Development 73.25Authority for predesign to upgrade and 73.26extend utilities to serve Elk Run Bioscience 73.27Research Park and The Falls - Healthy 73.28Living By Nature, an integrated medicine 73.29facility. This is a onetime appropriation and 73.30is available until expended.73.31(q) $300,000 the first year is for a grant 73.32to Thomson Township for infrastructure 73.33improvements for the industrial park. This is 73.34a onetime appropriation.74.1(r) $75,000 the first year for a grant to 74.2Le Sueur County for the cost of cleaning 74.3debris from lakes in Le Sueur County, 74.4caused by the August 24, 2006, tornado in 74.5southern Le Sueur County. This is a onetime 74.6appropriation.74.7(s) $3,000,000 the second year is for 74.8bioscience business development and 74.9commercialization grants. The commissioner 74.10shall designate an evaluation team to accept 74.11grant applications, review and evaluate 74.12grant proposals, and select up to five grant 74.13proposals to receive funding each year. 74.14The evaluation team shall be comprised 74.15of not more than 12 members including: 74.16the commissioner or the commissioner's 74.17designee; representatives of bioscience 74.18businesses; public and private institutions 74.19of higher education; private investment 74.20companies; a nonprofit entity that qualifies as 74.21a 501(c)6 under the Internal Revenue Code 74.22and is a trade association representing the 74.23life sciences industry; and a bio business 74.24alliance that qualifies as a 501(c)3 under the 74.25Internal Revenue Code. The criteria used 74.26by the evaluation team in evaluating grant 74.27proposals must include, but is not limited 74.28to: the potential to create and sustain jobs 74.29within the state of Minnesota; the potential 74.30for long-term business activity, growth, 74.31and expansion in Minnesota; the level of 74.32technological maturity; the potential to attract 74.33private investment; and the availability and 74.34readiness of markets. The commissioner 74.35must report to the standing committees of 74.36the house of representatives and the senate 75.1having jurisdiction over bioscience and 75.2technology issues by February 1 each year 75.3on the number, type, and amounts of grants 75.4awarded and the activities of the grant 75.5recipients. This is a onetime appropriation 75.6and is available until expended.75.7(t) $1,500,000 the first year is for the urban 75.8challenge grant program under Minnesota 75.9Statutes, section 116M.18, of which 75.10$1,000,000 is for a grant to the Neighborhood 75.11Development Center for assistance necessary 75.12to retain minority business enterprises 75.13at the Global Market. This is a onetime 75.14appropriation.75.15(u) $375,000 each year is to develop and 75.16operate a bioscience business marketing 75.17program to market Minneota bioscience 75.18businesses and business opportunities 75.19to other states and other countries. The 75.20bioscience business marketing program must 75.21emphasize bioscience business location and 75.22expansion opportunities in communities 75.23outside of the seven-county metropolitan 75.24area as defined in Minnesota Statutes, 75.25section 473.121, subdivision 2, that have 75.26established collaborative plans among two 75.27or more municipal units for bioscience 75.28business activities, and that are within 15 75.29miles of a four-year, baccalaureate degree 75.30granting institution or a two-year technical 75.31or community college that offers bioscience 75.32curricula. The commissioner must report 75.33to the committees of the senate and house 75.34of representatives having jurisdiction 75.35over bioscience and technology issues by 75.36February 1 of each year on the expenditures 76.1of these funds and the promotional activities 76.2undertaken to market the Minnesota 76.3bioscience industry to persons outside of the 76.4state. This is a onetime appropriation and is 76.5available until expended.76.6(v) $225,000 each year is for the purposes 76.7of the nanotechnology development fund 76.8(NDF) established in section 12, for grants 76.9to promote increased use of advanced 76.10instrumentation for nanomaterials analysis, 76.11to be awarded on a one-to-one matching basis 76.12to qualifying Minnesota small businesses. 76.13This is a onetime appropriation.76.14(w) $50,000 the first year is for a contract 76.15with a public higher education institution 76.16in Minnesota jointly entered into with the 76.17Center for Rural Development to study the 76.18needs of the renewable energy economy for 76.19trained employees and the training required 76.20for those employees. The study must include 76.21extensive consultation and involvement of 76.22representatives of the renewable energy 76.23industry, environmental interests, labor, the 76.24University of Minnesota, and the Minnesota 76.25State Colleges and Universities. The 76.26commissioner shall report the results of the 76.27study to the chairs of the finance divisions 76.28of the legislature with jurisdiction over 76.29economic development, energy, and higher 76.30education by November 1, 2007. This is a 76.31onetime appropriation.76.32(x) $25,000,000 is for the Minnesota 76.33minerals 21st century fund created in 76.34Minnesota Statutes, section 116J.423, 76.35to restore the money unallotted by the 77.1commissioner of finance in 2003 pursuant 77.2to Minnesota Statutes, section 16A.152. 77.3This appropriation may be used as provided 77.4in Minnesota Statutes, section 116J.423, 77.5subdivision 2. This appropriation is available 77.6until expended.77.7(y) $900,000 each year is for a grant to the 77.8city of St. Paul to be used to pay debt service 77.9on bond obligations issued by the city of St. 77.10Paul in 1996 for the convention center.77.11(z) $189,000 each year is appropriated from 77.12the general fund to the commissioner of 77.13employment and economic development for 77.14grants of $63,000 to eligible organizations 77.15each year and for the purposes of this 77.16paragraph. Each state grant dollar must be 77.17matched with $1 of nonstate funds. Any 77.18balance in the first year does not cancel but is 77.19available in the second year.77.20The commissioner of employment and 77.21economic development must make grants to 77.22organizations to assist in the development 77.23of entrepreneurs and small businesses. 77.24Three grants must be awarded to continue 77.25or to develop a program. One grant must 77.26be awarded to the Riverbend Center for 77.27Entrepreneurial Facilitation in Blue Earth 77.28County, and two to other organizations 77.29serving Faribault and Martin Counties. Grant 77.30recipients must report to the commissioner 77.31by February 1 of each year that the 77.32organization receives a grant with the 77.33number of customers served; the number of 77.34businesses started, stabilized, or expanded; 77.35the number of jobs created and retained; and 78.1business success rates. The commissioner 78.2must report to the house of representatives 78.3and senate committees with jurisdiction 78.4over economic development finance on the 78.5effectiveness of these programs for assisting 78.6in the development of entrepreneurs and 78.7small businesses.78.8(aa) $10,000 for the biennium is to the 78.9commissioner of employment and economic 78.10development for the Minnesota investment 78.11fund. This grant is not subject to grant 78.12limitations under section 116J.8731, 78.13subdivision 5.

78.14Subd. 3.Workforce Development48,896,00048,622,000

78.15Appropriations by Fund78.16General34,726,00034,452,00078.1778.18Workforce Development14,170,00014,170,000

78.19(a) $6,785,000 each year is for the Minnesota 78.20job skills partnership program under 78.21Minnesota Statutes, sections 116L.01 to 78.22116L.17. If the appropriation for either 78.23year is insufficient, the appropriation for the 78.24other year is available. This appropriation is 78.25available until spent.78.26(b) $305,000 each year is for a grant under 78.27Minnesota Statutes, section 116J.8747, to 78.28Twin Cities RISE! to provide training to 78.29hard-to-train individuals. 78.30(c) $1,375,000 each year is from 78.31the workforce development fund for 78.32Opportunities Industrialization Center 78.33programs. 78.34(d) $5,864,000 each year is from the general 78.35fund and $6,920,000 each year is from the 79.1workforce development fund for extended 79.2employment services for persons with 79.3severe disabilities or related conditions under 79.4Minnesota Statutes, section 268A.15. Of this, 79.5$125,000 each year and in the base for fiscal 79.6years 2010 and 2011 is to supplement funds 79.7paid for wage incentive for the community 79.8support fund established in Minnesota Rules, 79.9part 3300.2045.79.10(e) $1,900,000 each year is for grants for 79.11programs that provide employment support 79.12services to persons with mental illness under 79.13Minnesota Statutes, sections 268A.13 and 79.14268A.14. Up to $77,000 each year may be 79.15used for administrative and salary expenses.79.16(f) $2,190,000 each year is for grants under 79.17Minnesota Statutes, section 268A.11, for the 79.18eight centers for independent living. Money 79.19not expended the first year is available the 79.20second year.79.21(g) $5,940,000 each year is for State Services 79.22for the Blind activities.79.23(h) $150,000 each year is from the general 79.24fund and $175,000 each year is from the 79.25workforce development fund for grants under 79.26Minnesota Statutes, section 268A.03, to Rise, 79.27Inc. for the Minnesota Employment Center 79.28for People Who are Deaf or Hard-of-Hearing. 79.29Money not expended the first year is 79.30available the second year.79.31(i) $9,021,000 each year from the general 79.32fund is for the vocational rehabilitation 79.33program and $325,000 each year from 79.34the workforce development fund is for 79.35interpreters for a regional transition program 80.1specializing in culturally appropriate 80.2transition services leading to employment 80.3for deaf, hard-of-hearing, and deaf-blind 80.4students.80.5(j) $150,000 each year is for a grant to 80.6Advocating Change Together for training, 80.7technical assistance, and resource materials 80.8to persons with developmental and mental 80.9illness disabilities.80.10(k) $250,000 each year for a grant to 80.11Lifetrack Resources for its immigrant/refugee 80.12collaborative programs, including those 80.13related to job-seeking skills and workplace 80.14orientation, intensive job development, 80.15functional work English, and on-site job 80.16coaching.80.17(l) $1,075,000 each year is for the youthbuild 80.18program under Minnesota Statutes, sections 80.19116L.361 to 116L.366.80.20(m) $1,350,000 each year is from the 80.21workforce development fund for grants 80.22to fund summer youth employment in 80.23Minneapolis. The grants shall be used to 80.24fund up to 500 jobs for youth each summer. 80.25Of this appropriation, $350,000 each year is 80.26for a grant to the learn-to-earn summer youth 80.27employment program. The commissioner 80.28shall establish criteria for awarding the 80.29grants. This appropriation is available in 80.30either year of the biennium and is available 80.31until spent.80.32(n) $50,000 each year is for a grant 80.33to Northern Connections in Perham to 80.34implement and operate a pilot workforce 80.35program that provides one-stop supportive 81.1services to assist individuals as they transition 81.2into the workforce. This appropriation is 81.3available to the extent it is matched by $1 of 81.4nonstate money for each $1 of state money.81.5(o) $100,000 each year is for a grant to 81.6Ramsey County Workforce Investment Board 81.7for the development of the building lives 81.8program. This is a onetime appropriation.81.9(p) $300,000 each year is for a grant to the 81.10Hennepin-Carver Workforce Investment 81.11Board (WIB) to coordinate with the Partners 81.12for Progress Regional Skills Consortium 81.13to provide employment and training as 81.14demonstrated by the Twin Cities regional 81.15health care training partnership project.81.16(q) $160,000 the first year is for a grant 81.17to Workforce Development, Inc., for a 81.18pilot project to provide demand-driven 81.19employment and training services to 81.20welfare recipients and other economically 81.21disadvantaged populations in Mower, 81.22Freeborn, Dodge, and Steele Counties. This 81.23is a onetime appropriation.81.24(r) $200,000 each year is for a grant to 81.25HIRED to operate its industry sector training 81.26initiatives, which provide employee training 81.27developed in collaboration with employers in 81.28specific, high-demand industries. This is a 81.29onetime appropriation.81.30(s) $200,000 the first year is for a grant 81.31to a nonprofit organization. The nonprofit 81.32organization must work on behalf of all 81.33licensed vendors to coordinate their efforts 81.34to respond to solicitations or other requests 81.35from private and governmental units as 82.1defined in Minnesota Statutes, section 82.2471.59, subdivision 1, in order to increase 82.3employment opportunities for persons with 82.4disabilities.82.5(t) $3,500,000 each year from the workforce 82.6development fund is for the Minnesota youth 82.7program under Minnesota Statutes, section 82.8116L.56 and 116L.561.82.9(u) $500,000 each year from the workforce 82.10development fund is for a grant to the 82.11Minnesota Alliance of Boys and Girls 82.12Clubs to administer a statewide project 82.13of youth job skills development. This 82.14project, which may have career guidance 82.15components, including health and life skills, 82.16is to encourage, train, and assist youth in 82.17job-seeking skills, workplace orientation, 82.18and job site knowledge through coaching. 82.19This grant requires a 25 percent match from 82.20nonstate resources.82.21(v) $350,000 in each year from the workforce 82.22development fund is for a grant to Ramsey 82.23County for a summer youth employment 82.24program to place at-risk youth, ages 14 to 21, 82.25in subsidized summer employment.82.26The commissioner must provide funding 82.27for the Minnesota Conservation Corps to 82.28provide learning stipends for deaf students 82.29and wages for interpreters participating in 82.30the MCC summer youth program.

82.31Subd. 4.State-Funded Administration2,998,0003,020,000

82.32The first $1,450,000 deposited in each 82.33year of the biennium and in each year of 82.34subsequent bienniums into the contingent 82.35account created under Minnesota Statutes, 83.1section 268.196, subdivision 3, shall be 83.2transferred by June 30 of each fiscal year 83.3to the workforce development fund created 83.4under Minnesota Statutes, section 116L.20. 83.5Deposits in excess of $1,450,000 shall be 83.6transferred by June 30 of each fiscal year to 83.7the general fund.

83.883.9Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY

83.10Subdivision 1.Total Appropriation$ 29,002,000$29,794,000

83.11Appropriations by Fund83.122008200983.13General 4,644,0005,035,00083.1483.15Workers' Compensation21,716,00022,053,00083.1683.17Workforce Development765,000781,00083.1883.19State Government Special Revenue1,877,0001,925,000

83.20The amounts that may be spent for each 83.21purpose are specified in the following 83.22subdivisions.

83.23Subd. 2.Workers' Compensation10,381,00010,659,000

83.24This appropriation is from the workers' 83.25compensation fund.83.26$200,000 each year is for grants to the 83.27Vinland Center for rehabilitation services.

83.28Subd. 3.Safety Codes and Services9,949,00010,134,000

83.29$5,292,000 the first year and $5,388,000 83.30the second year are from the workers' 83.31compensation fund. $1,877,000 the first year 83.32and $1,925,000 the second year are from the 83.33state government special revenue fund.83.34$1,000,000 each year is from the workers' 83.35compensation fund for patient safe handling 84.1grants under Minnesota Statutes, section 84.2182.6553.84.3$100,000 each year is from the workers' 84.4compensation fund for the operation of 84.5the meatpacking industry workers' rights 84.6ombudsman under Minnesota Statutes, 84.7section 179.87.

84.8Subd. 4.Labor Standards/Apprenticeship 2,629,0002,995,000

84.9Appropriations by Fund84.10General 1,864,0002,214,00084.1184.12Workforce Development765,000781,000

84.13The appropriation from the workforce 84.14development fund is for the apprenticeship 84.15program under Minnesota Statutes, chapter 84.16178, and includes $100,000 each year for 84.17labor education and advancement program 84.18grants.84.19$360,000 the first year and $300,000 the 84.20second year from the general fund are for 84.21prevailing wage enforcement of which 84.22$60,000 in the first year is for outreach and 84.23survey participation improvements.84.24$800,000 the first year and $1,200,000 the 84.25second year from the general fund are for 84.26the independent contractor licensing under 84.27Minnesota Statutes, section 181.723.

84.28Subd. 5.General Support6,043,0006,006,000

84.29This appropriation is from the workers' 84.30compensation fund.

84.3184.32Sec. 5. BUREAU OF MEDIATION SERVICES

84.33Subdivision 1.Total Appropriation$1,850,000$1,877,000

85.1The amounts that may be spent for each 85.2purpose are specified in the following 85.3subdivisions.

85.4Subd. 2.Mediation Services1,700,0001,727,000

85.585.6Subd. 3.Labor Management Cooperation Grants150,000150,000

85.7$150,000 each year is for grants to area labor 85.8management committees. Grants may be 85.9awarded for a 12-month period beginning 85.10July 1 each year. Any unencumbered balance 85.11remaining at the end of the first year does not 85.12cancel but is available for the second year.

85.1385.14Sec. 6. WORKERS' COMPENSATION COURT OF APPEALS$1,663,000$1,710,000

85.15This appropriation is from the workers' 85.16compensation fund. 

85.17Sec. 7. BOARD OF ACCOUNTANCY$493,000$499,000

85.1885.1985.2085.21Sec. 8. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN$795,000$805,000

85.22Sec. 9. BOARD OF BARBER EXAMINERS$711,000$724,000

85.2385.24Sec. 10. MINNESOTA BOXING COMMISSION$50,000$-0-

85.25To transition the commission to being a 85.26self-funded entity.85.27    Sec. 11. BIOSCIENCE ZONES DESIGNATION.85.28    The commissioner of employment and economic development must establish a 85.29criteria for expanding the zones. The criteria must limit designating a new zone to a 85.30community that has adequate resources and infrastructure to support bioindustry, including 85.31postsecondary institutions, strong health care systems, and existing bioscience companies. 85.32It must also require that a new zone be located on a transportation corridor.86.1    Sec. 12. NANOTECHNOLOGY DEVELOPMENT FUND.86.2    Subdivision 1.Nanotechnology development fund created.The nanotechnology 86.3development fund (NDF) is created in the state treasury. Money in the fund is appropriated 86.4to the commissioner of employment and economic development for the purposes of this 86.5section.86.6    Subd. 2.Program established; purpose.The nanotechnology development 86.7fund program is established to develop a collaborative economic development initiative 86.8between the state of Minnesota, the private sector, and multiple academic institutions 86.9to promote by small businesses an increased use of advanced nanoinstrumentation for 86.10characterization, fabrication, and other related processes; provide research consulting 86.11by knowledgeable specialists; and provide student internship opportunities to increase 86.12nanotechnology experience by working with small, medium, or large Minnesota 86.13companies. The NDF program shall be administered by the Department of Employment 86.14and Economic Development and is not a state agency. 86.15    Subd. 3.Definition; qualifying Minnesota small business."Qualifying Minnesota 86.16small business" means:86.17    (1) a Minnesota small business corporation, sole proprietorship, or partnership that 86.18has fewer than 50 employees; or 86.19    (2) a Minnesota business corporation, sole proprietorship, or partnership that:86.20    (i) has 51 to 100 employees; and86.21    (ii) demonstrates current financial adversity or risk or a major prospect of aiding 86.22the business's long-term outlook by significant use of nanotechnology in the business's 86.23offerings.86.24    Subd. 4.Use of fund; grants.The commissioner shall extend onetime matching 86.25grants from the NDF to qualifying Minnesota small businesses located throughout the 86.26state to:86.27    (1) add nanotechnology applications to products that are being developed by 86.28Minnesota small businesses to enhance distinctiveness;86.29    (2) promote the depth, breadth, and value of technologies being developed by 86.30Minnesota businesses with the aid of nanotechnology;86.31    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product 86.32time-to-market, with higher incidence of distinct product characteristics;86.33    (4) provide Minnesota small businesses with broader access to experienced research 86.34consultants; and86.35    (5) increase the number of researchers experienced in working with 86.36nanoinstrumentation.87.1    Subd. 5.Grant application and award procedure.(a) The commissioner may 87.2give priority to applicants:87.3    (1) whose intellectual property would benefit from utilization of nanoinstrumentation 87.4not possessed in-house;87.5    (2) who are currently utilizing nanoinstrumentation either at the University of 87.6Minnesota or a private sector location on a leased, hourly basis; and87.7    (3) who wish to increase their access to experienced research consultants.87.8    (b) The commissioner shall decide whether to award a grant to an eligible applicant 87.9based on:87.10    (1) the applicant's planned frequency of usage of nanoinstrumentation for 87.11characterization, fabrication, and other related processes; and87.12    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form 87.13of a signed affidavit from a certified facility to confirm the one-to-one private sector 87.14investment has been met.87.15    (c) A grant made under this section must:87.16    (1) include verification of matching rental fees or internship stipends paid by the 87.17grantee; and87.18    (2) be for a total amount paid to each grantee of not less than $500 nor more than 87.19$20,000 within the biennium.87.20    Subd. 6.Administration.The commissioner of employment and economic 87.21development must develop and maintain a record-keeping system that specifies how 87.22funds from the NDF are applied for and distributed. Businesses receiving grants 87.23from the NDF must provide contact information, the date and time of the use of the 87.24nanoinstrumentation, proof of their matching contribution to meet the rental costs or 87.25provide an internship's stipend, and a general statement of the expected outcome from 87.26the use of the nanoinstrumentation, to the extent documentation can be made without 87.27divulging proprietary information.87.28    Subd. 7.Gifts and donations.Gifts and donations, including land or interests 87.29in land, may be made to NDF. Noncash gifts and donations must be disposed of for 87.30cash as soon as the commissioner of employment and economic development can 87.31prudently maximize the value of the gift or donation. All funds must be credited to the 87.32nanotechnology development fund. All interest earned by the fund must be credited to 87.33the NDF.87.34    Subd. 8.Report to legislature.By June 30 of each odd-numbered year, the 87.35commissioner of employment and economic development must submit a report to the 87.36legislature with statistics about the use of the NDF.88.1    Sec. 13. WORK GROUP.88.2    The commissioner of employment and economic development shall convene a work 88.3group to evaluate the impact of the money appropriated for wage incentives and how the 88.4wage incentive program works. The work group is to make recommendations to the 88.5legislature by January 15, 2008.88.6ARTICLE 788.7EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS88.8    Section 1. Minnesota Statutes 2006, section 116J.401, is amended by adding a 88.9subdivision to read:88.10    Subd. 4.Use of funds for unemployed worker assistance.Payment of employee 88.11compensation costs from the Wagner-Peyser Act referenced in subdivision 1, clause 88.12(8), must be used to provide direct benefit to unemployed and underemployed workers 88.13through the state's workforce centers. At least 75 percent of the employee compensation 88.14paid from Wagner-Peyser funds must be used for employees at workforce centers who 88.15provide direct assistance to unemployed and underemployed workers and no more than 88.1625 percent may be used for providing hiring and human resource services for employers. 88.17The funds under this section may be used to establish an internet based labor exchange 88.18system. By July 1 of each year, the commissioner must submit a report to the committees 88.19of the legislature responsible for oversight of unemployment insurance with details on 88.20the use of Wagner-Peyser funds, including the number of employee positions funded, the 88.21location of the employees, and the use of funds for internet labor exchange system and 88.22other business assistance.88.23    Sec. 2. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT 88.24INVESTMENT FUND.88.25    Subdivision 1.Eligible organization.For the purposes of this section, "eligible 88.26organization" means an organization established pursuant to section 116J.415 which 88.27provides business financing to greater Minnesota businesses.88.28    Subd. 2.Investment fund establishment.The commissioner shall establish an 88.29investment fund from which fund investments can be made in eligible organizations. The 88.30funds repaid by the eligible organizations are to be returned to the fund for subsequent 88.31reinvestment in eligible organizations.88.32    Subd. 3.Authorized investments.The commissioner is authorized to make 88.33investments in eligible organizations. The commissioner shall invest funds in the form of 89.1loans to eligible organizations for the purpose of providing capital to new and expanding 89.2businesses in the form of debt or equity, or both.89.3    Subd. 4.Investment authorized.The commissioner may make investments in 89.4eligible organizations under the following terms:89.5    (1) the organization seeking an investment of funds must guarantee repayment of not 89.6less than 100 percent of the funds invested in the eligible organization;89.7    (2) the investments are to be made in the form of a loan to the eligible organization 89.8for a term of ten years, at an interest rate of one percent;89.9    (3) during the ten-year term of the loan, the eligible organization shall make annual 89.10interest-only payments;89.11    (4) at the end of the ten-year term, the eligible organization is required to make a 89.12payment in the entire principal amount of the initial loan;89.13    (5) the state investment by the commissioner in any eligible organization may not 89.14exceed $2,000,000;89.15    (6) the full amount of state investment will be advanced to the approved eligible 89.16organization upon execution of a formal investment agreement, specifying the terms of the 89.17loan, as well as reporting and other requirements outlined in subdivision 5;89.18    (7) the eligible organization must maintain the funds in accounts that allow the funds 89.19to be readily available for business investments;89.20    (8) the eligible organization must make business investments totaling the entire 89.21amount of funds loaned by the state within three years of the execution of the investment 89.22agreement and subsequent transmittal of the funds; and89.23    (9) an eligible organization that receives an investment under this section shall 89.24report annually, in a format prescribed by the commissioner, the nature and amount of 89.25the business investments made, including, for each financing transaction involving funds 89.26received pursuant to this section, all forms and amounts of financing provided by the 89.27eligible organization from sources other than the investment fund established pursuant to 89.28this section, along with the number of jobs created and private sector investment leveraged.89.29    Subd. 5.Requirements for state investments.All investments are subject to an 89.30investment agreement which must include:89.31    (1) a description of the eligible organization, including business finance experience, 89.32qualifications, and investment history;89.33    (2) a description of the uses of investment proceeds by the eligible organization;89.34    (3) an explanation of the investment objectives;89.35    (4) a description of accounting and reporting standards to be used by the eligible 89.36organization; and90.1    (5) a copy of the most recent audited financial statements of the eligible organization.90.2    Sec. 3. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:90.3    Subdivision 1. Grant account. A contaminated site cleanup and development 90.4grant account is created in the general fund. Money in the account may be used, as 90.5appropriated by law, to make grants as provided in section 
         116J.554 and to pay for the 90.6commissioner's costs in reviewing applications and making grants. Notwithstanding 90.7section 
         16A.28, money appropriated to the account for this program from any source is 90.8available for four years until spent.90.9    Sec. 4. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:90.10    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the 90.11following criteria are met:90.12    (1) the site is not scheduled for funding during the current or next fiscal year under 90.13the Comprehensive Environmental Response, Compensation, and Liability Act, United 90.14States Code, title 42, section 9601, et seq. or under the Environmental Response, and 90.15Liability Act under sections 
         115B.01 to 
         115B.20; 90.16    (2) the appraised value of the site after adjusting for the effect on the value of the 90.17presence or possible presence of contaminants using accepted appraisal methodology, or 90.18the current market value of the site as issued under section 273.121, separately taking into 90.19account the effect of the contaminants on the market value, (i) is less than 75 percent of 90.20the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup 90.21costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and 90.22    (3) (2) if the proposed cleanup is completed, it is expected that the site will be 90.23improved with buildings or other improvements and these improvements will provide a 90.24substantial increase in the property tax base within a reasonable period of time or the site 90.25will be used for an important publicly owned or tax-exempt facility.90.26    Sec. 5. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:90.27    Subdivision 1. Priorities. (a) The legislature expects that applications for grants 90.28will exceed the available appropriations and the agency will be able to provide grants to 90.29only some of the applicant development authorities.90.30    (b) If applications for grants for qualified sites exceed the available appropriations, 90.31the agency shall make grants for sites that, in the commissioner's judgment, provide 90.32the highest return in public benefits for the public costs incurred and that meet all the 91.1requirements provided by law. In making this judgment, the commissioner shall consider 91.2the following factors:91.3    (1) the recommendations or ranking of projects by the commissioner of the Pollution 91.4Control Agency regarding the potential threat to public health and the environment that 91.5would be reduced or eliminated by completion of each of the response action plans;91.6    (2) the potential increase in the property tax base of the local taxing jurisdictions, 91.7considered relative to the fiscal needs of the jurisdictions, that will result from 91.8developments that will occur because of completion of each of the response action plans;91.9    (3) the social value to the community of the cleanup and redevelopment of the site, 91.10including the importance of development of the proposed public facilities on each of 91.11the sites;91.12    (4) the probability that each site will be cleaned up without use of government 91.13money in the reasonably foreseeable future by considering but not limited to the current 91.14market value of the site versus the cleanup cost;91.15    (5) the amount of cleanup costs for each site; and91.16    (6) the amount of the commitment of municipal or other local resources to pay for 91.17the cleanup costs.91.18    The factors are not listed in a rank order of priority; rather the commissioner may 91.19weigh each factor, depending upon the facts and circumstances, as the commissioner 91.20considers appropriate. The commissioner may consider other factors that affect the net 91.21return of public benefits for completion of the response action plan. The commissioner, 91.22notwithstanding the listing of priorities and the goal of maximizing the return of public 91.23benefits, shall make grants that distribute available money to sites both within and outside 91.24of the metropolitan area. The commissioner shall provide a written statement of the 91.25supporting reasons for each grant. Unless sufficient applications are not received for 91.26qualifying sites outside of the metropolitan area, at least 25 percent of the money provided 91.27as grants must be made for sites located outside of the metropolitan area.91.28    Sec. 6. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:91.29    Subdivision 1. Commissioner discretion. The commissioner may make a grant for 91.30up to 50 percent of the eligible costs of a project. The determination of whether to make a 91.31grant for a site is within the discretion of the commissioner, subject to this section and 91.32sections 
         116J.571 to 
         116J.574 and available unencumbered money in the redevelopment 91.33account. For grants made in fiscal years 2008 and 2009, at least 75 percent of the available 91.34grant funds must be used for grants in greater Minnesota. For grants made in fiscal year 91.352010 and later, at least 50 percent of the available grant funds must be used for grants 92.1in greater Minnesota. If the commissioner determines that the applications for grants 92.2for projects in greater Minnesota are less than the amount of grant funds available, the 92.3commissioner may make grants for projects anywhere in Minnesota. The commissioner's 92.4decisions and application of the priorities under this section are not subject to judicial 92.5review, except for abuse of discretion.92.6    Sec. 7. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:92.7    Subd. 1a. Priorities. (a) If applications for grants exceed the available 92.8appropriations, grants shall be made for sites that, in the commissioner's judgment, provide 92.9the highest return in public benefits for the public costs incurred. "Public benefits" include 92.10job creation, bioscience development, environmental benefits to the state and region, 92.11efficient use of public transportation, efficient use of existing infrastructure, provision of 92.12affordable housing, multiuse development that constitutes community rebuilding rather 92.13than single-use development, crime reduction, blight reduction, community stabilization, 92.14and property tax base maintenance or improvement. In making this judgment, the 92.15commissioner shall give priority to redevelopment projects with one or more of the 92.16following characteristics:92.17    (1) the need for redevelopment in conjunction with contamination remediation needs;92.18    (2) the redevelopment project meets current tax increment financing requirements 92.19for a redevelopment district and tax increments will contribute to the project;92.20    (3) the redevelopment potential within the municipality;92.21    (4) proximity to public transit if located in the metropolitan area; and92.22    (5) redevelopment costs related to expansion of a bioscience business in Minnesota; 92.23and92.24    (5)(6) multijurisdictional projects that take into account the need for affordable 92.25housing, transportation, and environmental impact.92.26    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 92.27commissioner may weigh each factor, depending upon the facts and circumstances, as 92.28the commissioner considers appropriate. The commissioner may consider other factors 92.29that affect the net return of public benefits for completion of the redevelopment plan. The 92.30commissioner, notwithstanding the listing of priorities and the goal of maximizing the 92.31return of public benefits, shall make grants that distribute available money to sites both 92.32within and outside of the metropolitan area. Unless sufficient applications are not received 92.33for qualifying sites outside of the metropolitan area, at least 25 percent of the money 92.34provided as grants must be made for sites located outside of the metropolitan area.93.1    Sec. 8. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:93.2    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and 93.3facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in 93.4addition to the powers granted by section 
         116J.035, the commissioner may: 93.5    (1) locate, develop, and promote international markets for Minnesota products 93.6and services;93.7    (2) arrange and lead trade missions to countries with promising international markets 93.8for Minnesota goods, technology, services, and agricultural products;93.9    (3) promote Minnesota products and services at domestic and international trade 93.10shows;93.11    (4) organize, promote, and present domestic and international trade shows featuring 93.12Minnesota products and services;93.13    (5) host trade delegations and assist foreign traders in contacting appropriate 93.14Minnesota businesses and investments;93.15    (6) develop contacts with Minnesota businesses and gather and provide information 93.16to assist them in locating and communicating with international trading or joint venture 93.17counterparts;93.18    (7) provide information, education, and counseling services to Minnesota businesses 93.19regarding the economic, commercial, legal, and cultural contexts of international trade;93.20    (8) provide Minnesota businesses with international trade leads and information 93.21about the availability and sources of services relating to international trade, such as 93.22export financing, licensing, freight forwarding, international advertising, translation, and 93.23custom brokering;93.24    (9) locate, attract, and promote foreign direct investment and business development 93.25in Minnesota to enhance employment opportunities in Minnesota;93.26    (10) provide foreign businesses and investors desiring to locate facilities in 93.27Minnesota information regarding sources of governmental, legal, real estate, financial, and 93.28business services;93.29    (11) enter into contracts or other agreements with private persons and public entities, 93.30including agreements to establish and maintain offices and other types of representation in 93.31foreign countries, to carry out the purposes of promoting international trade and attracting 93.32investment from foreign countries to Minnesota and to carry out this section, without 93.33regard to section 
         16C.06; and 93.34    (12) market trade-related materials to businesses and organizations, and the proceeds 93.35of which must be placed in a special revolving account and are appropriated to the 93.36commissioner to prepare and distribute trade-related materials.94.1    (b) The programs and activities of the commissioner of employment and economic 94.2development and the Minnesota Trade Division may not duplicate programs and activities 94.3of the commissioner of agriculture.94.4    (c) The commissioner shall notify the chairs of the senate Finance and house Ways 94.5and Means Committees of each agreement under this subdivision to establish and maintain 94.6an office or other type of representation in a foreign country.94.7    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing 94.8assistance to official visits by foreign government representatives and shall serve as liaison 94.9to the foreign diplomatic corps in Minnesota.94.10    Sec. 9. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision 94.11to read:94.12    Subd. 4.Workforce development intermediaries."Workforce development 94.13intermediaries" means public, private, or nonprofit entities that provide employment 94.14services to low-income individuals and have a demonstrated track record bringing together 94.15employers and workers, private and public funding streams, and other stakeholders to 94.16implement pathways to career advancement for low-income individuals. Entities may 94.17include, but are not limited to, nonprofit organizations, educational institutions, or the 94.18administrative entity of a local workforce service area.94.19    Sec. 10. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:94.20    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid 94.21for developing programs which assist in the transition of persons from welfare to work and 94.22assist individuals at or below 200 percent of the federal poverty guidelines. The program 94.23is to be operated by the board. The board shall consult and coordinate with program 94.24administrators at the Department of Employment and Economic Development to design 94.25and provide services for temporary assistance for needy families recipients.94.26    Pathways grants-in-aid may be awarded to educational or other nonprofit training 94.27institutions or to workforce development intermediaries for education and training 94.28programs and services supporting education and training programs that serve eligible 94.29recipients.94.30    Preference shall be given to projects that:94.31    (1) provide employment with benefits paid to employees;94.32    (2) provide employment where there are defined career paths for trainees;94.33    (3) pilot the development of an educational pathway that can be used on a continuing 94.34basis for transitioning persons from welfare to work; and95.1    (4) demonstrate the active participation of Department of Employment and 95.2Economic Development workforce centers, Minnesota State College and University 95.3institutions and other educational institutions, and local welfare agencies.95.4    Pathways projects must demonstrate the active involvement and financial 95.5commitment of private business. Pathways projects must be matched with cash or in-kind 95.6contributions on at least a one-to-one one-half-to-one ratio by participating private 95.7business.95.8    A single grant to any one institution shall not exceed $400,000. A portion of a grant 95.9may be used for preemployment training.95.10    Sec. 11. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:95.11    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 95.12have the meanings given them in this subdivision.95.13    (b) "Commissioner" means the commissioner of employment and economic 95.14development.95.15    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the 95.16time employment ceased or was working in the state at the time employment ceased and:95.17    (1) has been permanently separated or has received a notice of permanent separation 95.18from public or private sector employment and is eligible for or has exhausted entitlement 95.19to unemployment benefits, and is unlikely to return to the previous industry or occupation;95.20    (2) has been long-term unemployed and has limited opportunities for employment 95.21or reemployment in the same or a similar occupation in the area in which the individual 95.22resides, including older individuals who may have substantial barriers to employment by 95.23reason of age;95.24    (3) has been terminated or has received a notice of termination of employment as a 95.25result of a plant closing or a substantial layoff at a plant, facility, or enterprise;95.26    (4) has been self-employed, including farmers and ranchers, and is unemployed as a 95.27result of general economic conditions in the community in which the individual resides or 95.28because of natural disasters; or95.29    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who 95.30has spent a substantial number of years in the home providing homemaking service and 95.31(i) has been dependent upon the financial support of another; and now due to divorce, 95.32separation, death, or disability of that person, must find employment to self support; or (ii) 95.33derived the substantial share of support from public assistance on account of dependents 95.34in the home and no longer receives such support.96.1    To be eligible under this clause, the support must have ceased while the worker 96.2resided in Minnesota.96.3    (d) "Eligible organization" means a state or local government unit, nonprofit 96.4organization, community action agency, business organization or association, or labor 96.5organization.96.6    (e) "Plant closing" means the announced or actual permanent shutdown of a single 96.7site of employment, or one or more facilities or operating units within a single site of 96.8employment.96.9    (f) "Substantial layoff" means a permanent reduction in the workforce, which is 96.10not a result of a plant closing, and which results in an employment loss at a single site 96.11of employment during any 30-day period for at least 50 employees excluding those 96.12employees that work less than 20 hours per week.96.13    Sec. 12. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:96.14    Subdivision 1. Determination and collection of special assessment. (a) In addition 96.15to amounts due from an employer under the Minnesota unemployment insurance program, 96.16each employer, except an employer making reimbursements is liable for a special 96.17assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on 96.18all taxable wages, as defined in section 
         268.035, subdivision 24. Beginning January 1, 96.192008, the special assessment shall be levied at a rate of .085 percent per year on all taxable 96.20wages. The assessment shall become due and be paid by each employer on the same 96.21schedule and in the same manner as other amounts due from an employer under section 96.22268.051, subdivision 1
         .96.23    (b) The special assessment levied under this section shall be subject to the same 96.24requirements and collection procedures as any amounts due from an employer under the 96.25Minnesota unemployment insurance program.96.26    Sec. 13. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:96.27    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit 96.28corporation with which it has entered into an agreement under subdivision 1. These 96.29loans must be used to support a new or expanding business. This support may include 96.30such forms of financing as the sale of goods to the business on installment or deferred 96.31payments, lease purchase agreements, or royalty investments in the business. The interest 96.32rate charged by a nonprofit corporation for a loan under this subdivision must not exceed 96.33the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the 96.34nonprofit corporation may charge a loan origination fee equal to or less than one percent 97.1of the loan value. The nonprofit corporation may retain the amount of the origination fee. 97.2The nonprofit corporation must provide at least an equal match to the loan received by the 97.3board. The maximum loan available to the nonprofit corporation under this subdivision is 97.4$50,000. Loans made to the nonprofit corporation under this subdivision may be made 97.5without interest. Repayments made by the nonprofit corporation must be deposited in the 97.6revolving fund created for urban initiative grants.97.7    Sec. 14. [116O.115] SMALL BUSINESS GROWTH ACCELERATION 97.8PROGRAM.97.9    Subdivision 1.Establishment; purpose.The small business growth acceleration 97.10program is established. The purpose of the program is to (1) help qualified companies 97.11implement technology and business improvements; and (2) bridge the gap between 97.12standard market pricing for technology and business improvements and what qualified 97.13companies can afford to pay.97.14    Subd. 2.Qualified company.A company is qualified to receive assistance under 97.15the small business growth acceleration program if it is a manufacturing company or a 97.16manufacturing-related service company that employs 100 or fewer full-time equivalent 97.17employees.97.18    Subd. 3.Applications for assistance.A company seeking assistance under the 97.19small business growth acceleration program must file an application according to the 97.20requirements of the corporation. A company's application for small business growth 97.21acceleration program assistance must include documentation of the company's overall plan 97.22for technology and business improvement and prioritize the components of the overall 97.23plan. The application must also document the company's need for small business growth 97.24acceleration program funds in order to carry forward the highest priority components of 97.25the plan.97.26    Subd. 4.Fund awards; use of funds.(a) The corporation shall establish 97.27procedures for determining which applicants for assistance under the small business 97.28growth acceleration program will receive program funding. Funding shall be awarded 97.29only to accelerate a qualified company's adoption of needed technology or business 97.30improvements when the corporation concludes that it is unlikely the improvements could 97.31be accomplished in any other way.97.32    (b) The maximum amount of funds awarded to a qualified company under the small 97.33business growth acceleration program for a particular project must not exceed 50 percent 97.34of the total cost of a project and must not under any circumstances exceed $25,000 during 98.1a calendar year. The corporation shall not award to a qualified company small business 98.2growth acceleration program funds in excess of $50,000 per year.98.3    (c) Any funds awarded to a qualified company under the small business growth 98.4acceleration program must be used for business services and products that will enhance the 98.5operation of the company. These business services and products must come either directly 98.6from the corporation or from a network of expert providers identified and approved by 98.7the corporation. No company receiving small business growth acceleration program 98.8funds may use the funds for refinancing, overhead costs, new construction, renovation, 98.9equipment, or computer hardware.98.10    (d) Any funds awarded must be disbursed to the qualified company as reimbursement 98.11documented according to requirements of the corporation.98.12    Subd. 5.Service agreements.The corporation shall enter a written service 98.13agreement with each company awarded funds under the small business growth acceleration 98.14program. Each service agreement shall clearly articulate the company's need for service, 98.15state the cost of the service, identify who will provide the service, and define the scope of 98.16the service that will be provided. The service agreement must also include an estimate 98.17of the financial impact of the service on the company and require the company to report 98.18the actual financial impact of the service to the corporation 24 months after the service is 98.19provided.98.20    Subd. 6.Reporting.The corporation shall report annually to the legislative 98.21committees with fiscal jurisdiction over the Department of Employment and Economic 98.22Development:98.23    (1) the funds awarded under the small business growth acceleration program during 98.24the past 12 months;98.25    (2) the estimated financial impact of the funds awarded to each company receiving 98.26service under the program; and98.27    (3) the actual financial impact of funds awarded during the past 24 months.98.28    Sec. 15. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.98.29    Subdivision 1.Definitions.For the purposes of this section and section 179.87: 98.30    (1) "employer" means any person or business entity having 25 or more employees 98.31in the meatpacking industry; and98.32    (2) "meatpacking industry" means business operations in which slaughtering, 98.33butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry 98.34packing, poultry manufacturing, pet food manufacturing, processing of meatpacking 99.1products, or rendering is carried on. Meatpacking products include livestock and poultry 99.2products.99.3    Subd. 2.Right to adequate facilities.An employer must provide its employees:99.4    (1) adequate and working restroom facilities;99.5    (2) adequate room for meal and rest breaks;99.6    (3) adequate locker facilities; and99.7    (4) adequate time for necessary restroom and meal breaks as required under chapter 99.8177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter 99.9126, or a valid collective bargaining agreement.99.10    Subd. 3.Right to adequate equipment and training.An employer must furnish its 99.11employees with equipment and training that is adequate to perform the job task assigned. 99.12An employer must make ongoing skill development and training opportunities, including 99.13supervisory training, available to employees.99.14    Subd. 4.Information provided to employee by employer.(a) An employer must 99.15provide an explanation in an employee's native language of the employee's rights and 99.16duties as an employee either person-to-person or through written materials as required 99.17by state or federal law, or a valid collective bargaining agreement that, at a minimum, 99.18includes:99.19    (1) a complete description of the salary and benefits plans as they relate to the 99.20employee as required under chapter 181;99.21    (2) a job description for the employee's position as required under chapter 181;99.22    (3) a description of leave policies as required under chapter 181 and United States 99.23Code, title 29, chapter 28;99.24    (4) a description of the work hours and work hours policy as required under chapter 99.25181; United States Code, title 29, chapter 201; or a valid collective bargaining agreement; 99.26and99.27    (5) a description of the occupational hazards known to exist for the position as 99.28required under chapters 181 and 182 and United States Code, title 29, chapter 15.99.29    (b) The explanation must also include information on the following employee rights 99.30as protected by state or federal law and a description of where additional information 99.31about those rights may be obtained:99.32    (1) the right to organize and bargain collectively as required under this chapter and 99.33chapter 177, and United States Code, title 29, chapter 7;99.34    (2) the right to a safe workplace as required under chapters 181 and 182 and United 99.35States Code, title 29, chapter 15; and100.1    (3) the right to be free from discrimination as required under this chapter and 100.2chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.100.3    Subd. 5.Civil action.A person aggrieved as a result of a violation of this section 100.4may file suit in any district court of this state. If the court finds that the respondent has 100.5intentionally violated this section, the court may award damages up to and including an 100.6amount equal to the original damages and may provide injunctive relief.100.7    Subd. 6.Criminal penalty.An employer who violates this section is guilty of a 100.8misdemeanor.100.9    Sec. 16. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS 100.10OMBUDSMAN.100.11    Subdivision 1.Position established.The position of meatpacking industry workers 100.12rights ombudsman is established within the Department of Labor and Industry. The 100.13ombudsman shall be an employee of the department. The ombudsman shall be appointed 100.14by the commissioner in consultation with the chairs of the standing committees of the 100.15senate and house of representatives with jurisdiction over labor and employment issues in 100.16accordance with the preference established in subdivision 5.100.17    Subd. 2.Duties.The ombudsman shall inspect and review the practices and 100.18procedures of meatpacking operations in the state. The ombudsman shall work to ensure 100.19workers rights under section 179.86 are protected.100.20    Subd. 3.Access.The ombudsman or designated representatives of the ombudsman 100.21shall have access to all meatpacking operations in the state at any time meatpacking 100.22products are being processed and industry workers are on the job.100.23    Subd. 4.Office.Necessary office space, furniture, equipment, and supplies as 100.24well as necessary assistance for the ombudsman shall be provided by the Department of 100.25Labor and Industry.100.26    Subd. 5.Language preference.Preference shall be given to applicants for the 100.27ombudsman position who are fluent in languages in addition to English.100.28    Subd. 6.Report.The ombudsman shall, on or before December 1 of each year, 100.29submit a report to the members of the legislature and the governor regarding any 100.30recommended actions the ombudsman deems necessary or appropriate to provide for the 100.31fair treatment of workers in the meatpacking industry.100.32    Sec. 17. Minnesota Statutes 2006, section 181.78, is amended by adding a subdivision 100.33to read:101.1    Subd. 4.Forfeiture of employer rights.(a) This subdivision applies to an 101.2invention or proposal by an employee in which the employer has an enforceable interest 101.3by contract or otherwise.101.4    (b) An employer who has a right to develop or utilize an invention or proposal 101.5must make a substantial investment in the invention or proposal within five years of the 101.6submission of the invention or proposal or forfeit all rights and interests in the invention 101.7or proposal to the employee.101.8    (c) An employee who has acquired the rights and interests of an employer under 101.9paragraph (b) may transfer that interest in the invention or proposal to anyone.101.10    (d) An employer must notify in writing an employee who submits an invention or 101.11proposal to the employer of the employee's right under this subdivision within ten days of 101.12the submission. The employer must date and describe the proposal or invention received 101.13by the employer and provide a copy to the employee.101.14    Sec. 18. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE 101.15PRESENCE OF LIQUOR.101.16    No minor under the age of 18 shall be employed in any rooms constituting the place 101.17in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any 101.18tasks involving the serving, dispensing, or handling of such liquors that are consumed on 101.19the premises except that:101.20    (1) minors who have reached the age of 16 may be employed to perform busing or 101.21dishwashing services in those rooms or areas of a restaurant, hotel, motel, or resort where 101.22the presence of intoxicating liquor is incidental to food service or preparation; 101.23    (2) minors who have reached the age of 16 may be employed to perform busing or 101.24dishwashing services or to provide waiter or waitress service in rooms or areas where the 101.25presence of 3.2 percent malt liquor is incidental to food service or preparation;101.26    (3) minors who have reached the age of 16 may be employed to provide musical 101.27entertainment in those rooms or areas where the presence of intoxicating liquor and 3.2101.28percent malt liquor is incidental to food service or preparation; and 101.29    (4) minors are not prevented from working at tasks which are not prohibited by law 101.30in establishments where liquor is sold, served, dispensed, or handled in those rooms or 101.31areas where no liquor is consumed or served.101.32    Sec. 19. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:101.33    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on 101.34employers and employees of this state resulting from personal injuries and illnesses arising 102.1out of work situations is substantial; that the prevention of these injuries and illnesses is an 102.2important objective of the government of this state; that the greatest hope of attaining this 102.3objective lies in programs of research and education, and in the earnest cooperation of 102.4government, employers and employees; and that a program of regulation and enforcement 102.5is a necessary supplement to these more basic programs.102.6    The legislature declares it to be its purpose and policy through the exercise of its 102.7powers to assure so far as possible every worker in the state of Minnesota safe and 102.8healthful working conditions and to preserve our human resources by:102.9    (a) authorizing the Occupational Safety and Health Advisory Council to advise, 102.10consult with or recommend on any matters relating to the Minnesota occupational 102.11safety and health plan to the commissioner of labor and industry and by authorizing the 102.12commissioner of labor and industry to promulgate and enforce mandatory occupational 102.13safety and health standards applicable to employers and employees in the state of 102.14Minnesota;102.15    (b) encouraging employers and employees to increase their efforts to reduce the 102.16number of occupational safety and health hazards at their places of employment, and to 102.17stimulate employers and employees to institute new and to perfect existing programs for 102.18providing safe and healthful working conditions;102.19    (c) providing that employers and employees have separate but dependent 102.20responsibilities and rights with respect to achieving safe and healthful working conditions;102.21    (d) providing for research in the field of occupational safety and health; including 102.22the psychological factors involved, and by developing innovative methods, techniques, 102.23and approaches for dealing with occupational safety and health problems;102.24    (e) exploring ways to discover latent diseases, establishing causal connections 102.25between diseases and work in environmental conditions, and conducting other research 102.26relating to health problems, in recognition of the fact that occupational health standards 102.27present problems often different from those involved in occupational safety;102.28    (f) utilizing advances already made by federal laws and regulations providing safe 102.29and healthful working conditions;102.30    (g) providing criteria which will assure insofar as practicable that no employee 102.31will suffer diminished health, functional capacity, or life expectancy as a result of work 102.32experience;102.33    (h) providing an effective enforcement program which shall include locating 102.34enforcement personnel in areas of the state with a higher incidence of workplace fatalities, 102.35injuries, and complaints and a prohibition against giving advance notice of an inspection 102.36and sanctions for any individual violating this prohibition;103.1    (i) providing for appropriate reporting procedures with respect to occupational 103.2safety and health, which procedures will help achieve the objectives of this chapter and 103.3accurately describe the nature of the occupational safety and health problem;103.4    (j) encouraging joint labor-management efforts to reduce injuries and diseases 103.5arising out of employment;103.6    (k) providing consultation to employees and employers which will aid them in 103.7complying with their responsibilities under this chapter where such consultation does not 103.8interfere with the effective enforcement of this chapter; and103.9    (l) providing for training programs to increase the number and competence of 103.10personnel engaged in the field of occupational safety and health.103.11    Sec. 20. [182.6551] CITATION.103.12    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."103.13    Sec. 21. [182.6552] DEFINITIONS.103.14    Subdivision 1.Direct patient care worker."Direct patient care worker" means an 103.15individual doing the job of directly providing physical care to patients including nurses, as 103.16defined by section 148.171, who provide physical care to patients.103.17    Subd. 2.Health care facility."Health care facility" means a hospital as defined in 103.18section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55, 103.19subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.103.20    Subd. 3.Safe patient handling."Safe patient handling" means a process, based on 103.21scientific evidence on causes of injuries, that uses safe patient handling equipment rather 103.22than people to transfer, move, and reposition patients in all health care facilities to reduce 103.23workplace injuries. This process also reduces the risk of injury to patients.103.24    Subd. 4.Safe patient handling equipment."Safe patient handling equipment" 103.25means engineering controls, lifting and transfer aids, or mechanical assistive devices used 103.26by nurses and other direct patient care workers instead of manual lifting to perform the 103.27acts of lifting, transferring, and repositioning health care facility patients and residents.103.28    Sec. 22. [182.6553] SAFE PATIENT HANDLING PROGRAM.103.29    Subdivision 1.Safe patient handling program required.(a) By July 1, 2008, 103.30every licensed health care facility in the state shall adopt a written safe patient handling 103.31policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing 103.32manual lifting of patients by nurses and other direct patient care workers by utilizing 103.33safe patient handling equipment.104.1    (b) The program shall address:104.2    (1) assessment of hazards with regard to patient handling;104.3    (2) the acquisition of an adequate supply of appropriate safe patient handling 104.4equipment;104.5    (3) initial and ongoing training of nurses and other direct patient care workers on 104.6the use of this equipment;104.7    (4) procedures to ensure that physical plant modifications and major construction 104.8projects are consistent with program goals; and 104.9    (5) periodic evaluations of the safe patient handling program.104.10    Subd. 2.Safe patient handling committee.(a) By July 1, 2008, every licensed 104.11health care facility in the state shall establish a safe patient handling committee either by 104.12creating a new committee or assigning the functions of a safe patient handling committee 104.13to an existing committee.104.14    (b) Membership of a safe patient handling committee or an existing committee must 104.15meet the following requirements: 104.16    (1) at least half the members shall be nonmanagerial nurses and other direct patient 104.17care workers; and 104.18    (2) in a health care facility where nurses and other direct patient care workers 104.19are covered by a collective bargaining agreement, the union shall select the committee 104.20members proportionate to its representation of nonmanagerial workers, nurses, and other 104.21direct patient care workers.104.22    (c) A health care organization with more than one covered health care facility may 104.23establish a committee at each facility or one committee to serve this function for all the 104.24facilities. If the organization chooses to have one overall committee for multiple facilities, 104.25at least half of the members of the overall committee must be nonmanagerial nurses and 104.26other direct patient care workers and each facility must be represented on the committee.104.27    (d) Employees who serve on a safe patient handling committee must be compensated 104.28by their employer for all hours spent on committee business.104.29    Subd. 3.Facilities with existing programs.A facility that has already adopted a 104.30safe patient handling policy that satisfies the requirements of subdivision 1, and established 104.31a safe patient handling committee by July 1, 2008, is considered to be in compliance 104.32with those requirements. The committee must continue to satisfy the requirements of 104.33subdivision 2, paragraph (b), on an ongoing basis. 104.34    Subd. 4.Committee duties.A safe patient handling committee shall:104.35    (1) complete a patient handling hazard assessment that: 105.1    (i) considers patient handling tasks, types of nursing units, patient populations, and 105.2the physical environment of patient care areas; 105.3    (ii) identifies problems and solutions; 105.4    (iii) identifies areas of highest risk for lifting injuries; and 105.5    (iv) recommends a mechanism to report, track, and analyze injury trends;105.6    (2) make recommendations on the purchase, use, and maintenance of an adequate 105.7supply of appropriate safe patient handling equipment;105.8    (3) make recommendations on training of nurses and other direct patient care 105.9workers on use of safe patient handling equipment, initially when the equipment arrives at 105.10the facility and periodically afterwards;105.11    (4) conduct annual evaluations of the safe patient handling implementation plan and 105.12progress toward goals established in the safe patient handling policy; and105.13    (5) recommend procedures to ensure that, when remodeling of patient care areas 105.14occurs, the plans incorporate safe patient handling equipment or the physical space and 105.15construction design needed to accommodate safe patient handling equipment at a later date.105.16    Subd. 5.Training materials.The commissioner shall make training materials on 105.17implementation of this section available to all health care facilities at no cost as part of the 105.18training and education duties of the commissioner under section 182.673.105.19    Subd. 6.Enforcement.This section shall be enforced by the commissioner under 105.20section 182.661. A violation of this section is subject to the penalties provided under 105.21section 182.666.105.22    Subd. 7.Grant program.The commissioner may make grants to health care 105.23facilities to acquire safe patient handling equipment and for training on safe patient 105.24handling and safe patient handling equipment. Grants to any one facility may not exceed 105.25$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The 105.26commissioner shall establish a grant application process. The commissioner may give 105.27priority for grants to facilities that demonstrate that acquiring safe patient handling 105.28equipment will impose a financial hardship on the facility. For health care facilities 105.29that provide evidence of hardship, the commissioner may waive the 50 percent match 105.30requirement and may grant such a facility more than $40,000. Health care facilities that 105.31the commissioner determines are experiencing hardship shall not be required to meet the 105.32safe patient handling requirements until July 1, 2012.105.33    Sec. 23. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:105.34    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall not 105.35be eligible to receive unemployment benefits for any week with respect to which the 106.1applicant is receiving, has received, or has filed for payment, equal to or in excess of the 106.2applicant's weekly unemployment benefit amount, in the form of:106.3    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause 106.4shall not apply to vacation pay paid upon a permanent separation from employment;106.5    (2) severance pay, bonus pay, sick pay, and any other money payments, except 106.6earnings under subdivision 5, and back pay under subdivision 6, paid by an employer 106.7because of, upon, or after separation from employment, but only if the money payment is 106.8considered wages at the time of payment under section 
         268.035, subdivision 29, or United 106.9States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;. 106.10This clause does not apply to the first $10,000 of any amount of severance pay, bonus 106.11pay, sick pay, or any other payments paid to an employee with annual salary or wages 106.12under $75,000; or106.13    (3) pension, retirement, or annuity payments from any plan contributed to by a base 106.14period employer including the United States government, except Social Security benefits 106.15which are provided for in subdivision 4. The base period employer contributed to the 106.16plan if the contribution is excluded from the definition of wages under section 
         268.035, 106.17subdivision 29
         , clause (1), or United States Code, title 26, section 3121, clause (2), of 106.18the Federal Insurance Contribution Act.106.19    An applicant shall not be considered to have received the lump sum payment if the 106.20applicant immediately deposits that payment in a qualified pension plan or account; or106.21    (4) holiday pay.106.22    (b) This subdivision shall apply to all the weeks of payment and shall be applied to 106.23the period immediately following the last day of employment. The number of weeks of 106.24payment shall be determined as follows:106.25    (1) if the payments are made periodically, the total of the payments to be received 106.26shall be divided by the applicant's last level of regular weekly pay from the employer; or106.27    (2) if the payment is made in a lump sum, that sum shall be divided by the applicant's 106.28last level of regular weekly pay from the employer.106.29    (c) If the payment is less than the applicant's weekly unemployment benefit amount, 106.30unemployment benefits shall be reduced by the amount of the payment. If the computation 106.31of reduced unemployment benefits is not a whole dollar, it shall be rounded down to the 106.32next lower whole dollar.106.33EFFECTIVE DATE.This section is effective for unemployment benefits paid on 106.34or after January 1, 2006, regardless of when the continued request was filed or the week 106.35for which the unemployment benefits are paid.107.1    Sec. 24. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision 107.2to read:107.3    Subd. 5.Unemployment insurance benefits telephone system.The commissioner 107.4must ensure that the telephone system used for unemployment insurance benefits provides 107.5an option for any caller to speak to an unemployment insurance specialist. An individual 107.6who calls any of the publicized telephone numbers seeking information about applying for 107.7benefits or on the status of a claim must have the option to speak on the telephone to a 107.8specialist who can provide direct assistance or can direct the caller to the person or office 107.9that is able to respond to the caller's needs.107.10    Sec. 25. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:107.11    Subd. 13. Supported employment.(a) "Supported employment" means 107.12employment of a person with a disability so severe that the person needs ongoing training 107.13and support to get and keep a job in which:107.14    (1) the person engages in paid work in a position removed from the service vendor's 107.15site where individuals without disabilities who do not require public subsidies also may 107.16be employed;107.17    (2) public funds are necessary to provide ongoing training and support services 107.18throughout the period of the person's employment; and107.19    (3) the person has the opportunity for social interaction with individuals who do not 107.20have disabilities and who are not paid caregivers.107.21    (b) If the commissioner has certified a rehabilitation facility setting as integrated, 107.22then employment at that site may be considered supported employment.107.23    Sec. 26. Minnesota Statutes 2006, section 268A.01, is amended by adding a 107.24subdivision to read:107.25    Subd. 14.Affirmative business enterprise employment."Affirmative business 107.26enterprise employment" means employment which provides paid work on the premises of 107.27an affirmative business enterprise as certified by the commissioner.107.28    Affirmative business enterprise employment is considered community employment 107.29for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided 107.30that the wages for individuals reported must be at or above customary wages for the 107.31same employer. The employer must also provide one benefit package that is available to 107.32all employees.107.33    Sec. 27. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:108.1    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit 108.2corporation, or combination thereof establishing a rehabilitation facility shall appoint a 108.3rehabilitation facility board of no fewer than nineseven voting members before becoming 108.4eligible for the assistance provided by sections 
         268A.06 to 
         268A.15. When any city, 108.5town, or county singly establishes such a rehabilitation facility, the board shall be 108.6appointed by the chief executive officer of the city or the chair of the governing board 108.7of the county or town. When any combination of cities, towns, counties, or nonprofit 108.8corporations establishes a rehabilitation facility, the chief executive officers of the cities, 108.9nonprofit corporations, and the chairs of the governing bodies of the counties or towns 108.10shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation 108.11facility, the corporation shall appoint the board of directors. Membership on a board 108.12shall be representative of the community served and shall include a person with a 108.13disability. One-third to one-half of the board shall be representative of industry or 108.14business. The remaining members should be representative of lay associations for persons 108.15with a disability, labor, the general public, and education, welfare, medical, and health 108.16professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude 108.17the appointment of elected or appointed public officials or members of the board of 108.18directors of the sponsoring nonprofit corporation to the board, so long as the representation 108.19described above is preserved. If a county establishes an extended employment program 108.20and manages the program with county employees, the governing board shall be the county 108.21board of commissioners, and other provisions of this chapter pertaining to membership on 108.22the governing board do not apply. 108.23    Sec. 28. Minnesota Statutes 2006, section 268A.15, is amended by adding a 108.24subdivision to read:108.25    Subd. 9.Integrated setting.At the commissioner's discretion, paid work on the 108.26premises of a rehabilitation facility may be certified as an integrated setting after a site 108.27review by the department.108.28    Sec. 29. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision 108.29to read:108.30    Subd. 5.Local planning assistance.A regional development commission or, 108.31in regions not served by regional development commissions, a regional organization 108.32selected by the commissioner of employment and economic development, may develop a 108.33program to support planning on behalf of local units of government. The local planning 109.1must be related to issues of regional or statewide significance and may include, but is not 109.2limited to, the following:109.3    (1) local planning and development assistance, which may include local zoning 109.4ordinances and land use plans;109.5    (2) community or economic development plans, which may include workforce 109.6development plans, housing development plans and market analysis, JOBZ administration, 109.7grant writing assistance, and grant administration;109.8    (3) environment and natural resources plans, which may include solid waste 109.9management plans, wastewater management plans, and renewable energy development 109.10plans;109.11    (4) rural community health services; and109.12    (5) development of geographical information systems to serve regional needs, 109.13including hardware and software purchases and related labor costs.109.14    Each regional development commission or organization shall submit to the 109.15commissioner of employment and economic development an annual work program 109.16that outlines the work items for the upcoming year and establishes the relationship of 109.17the work items to development issues of regional or statewide significance. The entity 109.18completing the annual work program and identifying the statewide development issues 109.19shall consider input from the Departments of Employment and Economic Development, 109.20Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as 109.21appropriate to the issues.109.22    Sec. 30. WORKFORCE ENHANCEMENT FEE.109.23    If the commissioner of employment and economic development determines that 109.24the need for services under the dislocated worker program substantially exceeds the 109.25resources that will be available for the program, the commissioner may increase the 109.26special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no 109.27more than .12 percent of taxable wages.109.28    Sec. 31. FEDERAL PROCUREMENT LIAISON.109.29    The commissioner of employment and economic development must establish and 109.30operate a technology and commercialization unit in the Department of Employment and 109.31Economic Development. Appropriation for this purpose must be used to: coordinate 109.32public and private efforts to procure federal funding for collaborative research and 109.33development projects of primary benefit to small- and medium-sized businesses; promote 109.34contractual relationships between Minnesota businesses who, as recipients of federal 110.1grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess 110.2the research and development capabilities of small- and medium-sized businesses; 110.3undertake referral activities to link Minnesota companies with federal requests for 110.4proposal opportunities; and develop a framework for Minnesota companies to establish 110.5sole-sourcing relationships with federal agencies.110.6    The commissioner must report to the committees in the house of representatives and 110.7the senate having jurisdiction over bioscience and technology issues on the activities of 110.8the technology and commercialization unit by June 30 of each year.110.9    Sec. 32. LOCATION OF NORTHERN MINNESOTA INSPECTORS.110.10    By December 31, 2007, the commissioner of labor and industry must assign three 110.11occupational safety and health inspectors to one or more offices on the Iron Range and one 110.12inspector to an office in Bemidji.110.13    Sec. 33. ROLE OF STATE LEGISLATURE IN TRADE POLICY.110.14    (a) It shall be the policy of the state that approval for the state to be bound by any 110.15trade agreement requires the consent of the state legislature.110.16    (b) Four state legislative contacts must be informed by the governor when any trade 110.17agreement arrives in the governor's office. The four contacts are the majority and minority 110.18leader of the senate or their designated legislators, and the speaker and minority leader in 110.19the house of representatives or their designated legislators. The legislature declares that 110.20the purposes of the state contacts are to:110.21    (1) serve as the state's official legislative liaisons with the governor and the state 110.22legislature on trade-related matters;110.23    (2) serve as the legislature's designated recipients from the governor of federal 110.24requests for consent to consultation regarding investment, procurement, services, or other 110.25provisions of international trade agreements, which impinge on state law or regulatory 110.26authority reserved to the states;110.27    (3) transmit information regarding federal requests from the governor to all 110.28appropriate legislative committees;110.29    (4) issue a formal request to the Department of Employment and Economic 110.30Development and all appropriate state agencies to provide analysis of all proposed trade 110.31agreements' impact on state legislative authority and the economy of the state;110.32    (5) inform all members of the legislature on a regular basis about ongoing trade 110.33negotiations and dispute settlement proceedings with implications for the state more 110.34generally;111.1    (6) communicate the concerns of the legislature to the governor and the United 111.2States trade representative regarding ongoing and proposed trade negotiations; and 111.3    (7) notify the governor and the United States trade representative of the outcome 111.4of any legislative action.111.5    (c) The following actions are required before the state shall consent to the terms of 111.6a trade agreement:111.7    (1) when a federal trade request has been received, the governor must submit the 111.8request to the legislative contacts on a day both houses are in session. The request must 111.9contain a copy of the final legal text of the agreement together with:111.10    (i) a report by the Department of Employment and Economic Development in 111.11consultation with, at a minimum, the following agencies: Department of Administration, 111.12Department of Labor and Industry, Department of Agriculture, Department of Natural 111.13Resources, and the Minnesota Pollution Control Agency. The report shall include an 111.14analysis of how the agreement of the state to the specific provisions of the agreement 111.15will change or affect existing state law;111.16    (ii) a statement of any administrative action proposed to implement these trade 111.17agreement provisions in the state; and 111.18    (iii) a draft of legislation authorizing the state to sign on to the specific listed 111.19provisions of the agreement in question;111.20    (2) at least one public hearing, with adequate public notice, shall occur before the 111.21legislature votes on the bill; and 111.22    (3) the bill authorizing the state to sign on to specific listed provisions of an 111.23agreement is enacted into law.111.24    (d) It is the sense of this legislature that Congress should pass legislation instructing 111.25the United States trade representative to fully and formally consult individual state 111.26legislatures regarding procurement, services, investment, or any other trade agreement 111.27rules that impact state laws or authority before negotiations begin and as they develop, 111.28and to seek consent from state legislatures in addition to governors prior to binding 111.29states to conform their laws to the terms of international commercial agreements. Such 111.30legislation is necessary to ensure the prior informed consent of the state with regard to 111.31future international trade and investment agreements.111.32    (e) The state attorney general shall notify the United States trade representative of 111.33the policies in paragraph (d) in writing no later than 30 days after its effective date, and 111.34shall provide copies of the notice to the president of the senate, speaker of the house of 111.35representatives, the governor, and the state's congressional delegation.112.1    Sec. 34. STUDY; SAFE PATIENT HANDLING.112.2    (a) The commissioner of labor and industry shall study ways to require workers' 112.3compensation insurers to recognize compliance with Minnesota Statutes, section 112.4182.6553, in the workers' compensation premiums of health care and long-term care 112.5facilities. The commissioner shall report by January 15, 2008, the results of the study 112.6to the chairs of the policy committees of the legislature with primary jurisdiction over 112.7workers' compensation issues.112.8    (b) By January 15, 2008, the commissioner must make recommendations to the 112.9legislature regarding funding sources available to health care facilities for safe patient 112.10handling programs and equipment, including, but not limited to, low interest loans, interest 112.11free loans, and federal, state, or county grants.112.12    Sec. 35. WORK GROUP; SAFE PATIENT HANDLING.112.13    The Minnesota State Council on Disability shall convene a work group comprised 112.14of representatives from the Minnesota Medical Association and other organizations 112.15representing clinics, disability advocates, and direct care workers, to do the following:112.16    (1) assess the current options for and use of safe patient handling equipment in 112.17unlicensed outpatient clinics, physician offices, and dental settings;112.18    (2) identify barriers to the use of safe patient handling equipment in these settings; 112.19and112.20    (3) define clinical settings that move patients to determine applicability of the Safe 112.21Patient Handling Act.112.22    The work group must report to the legislature by January 15, 2008, including 112.23reports to the chairs of the senate and house of representatives committees on workforce 112.24development.112.25    Sec. 36. EFFECT ON RULES.112.26    The commissioner of labor and industry shall amend Minnesota Rules, part 112.275200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner 112.28may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting 112.29the amendment required by this section.112.30    Sec. 37. PUBLIC FACILITIES AUTHORITY FUNDING.112.31    To the greatest practical extent, projects on the Public Facilities Authority's 2007 112.32intended use plan, the listings for which were based on the Pollution Control Agency's 112.332006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 113.1qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 113.2section 21, that could not be certified by the Pollution Control Agency by the applicable 113.3deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court 113.4issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to 113.5obtain the required certification from the Pollution Control Agency.113.6    Sec. 38. REPEALER.113.7Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.113.8ARTICLE 8113.9LICENSING AND WAGES113.10    Section 1. [154.465] HAIR BRAIDING.113.11    Subdivision 1.Registration.Any person engaged in hair braiding solely for 113.12compensation as a profession, except persons licensed as cosmetologists, shall register 113.13with the Minnesota Board of Barber and Cosmetology Examiners in a form determined 113.14by the board.113.15    Subd. 2.Definition."Hair braiding" means a natural form of hair manipulation that 113.16results in tension on hair strands by beading, braiding, cornrowing, extending, lacing, 113.17locking, sewing, twisting, weaving, or wrapping human hair, natural fibers, synthetic 113.18fibers, and hair extensions into a variety of shapes, patterns, and textures predominantly by 113.19hand and by only using simple braiding devices, and maintenance thereof. Hair braiding 113.20includes what is commonly known as "African-style hair braiding" or "natural hair care" 113.21but is not limited to any particular cultural, ethnic, racial, or religious forms of hair styles. 113.22Hair braiding includes the making of customized wigs from natural hair, natural fibers, 113.23synthetic fibers, and hair extensions. Hair braiding includes the use of topical agents such 113.24as conditioners, gels, moisturizers, oils, pomades, and shampoos. Hair braiding does not 113.25involve the use of penetrating chemical hair treatments, chemical hair coloring agents, 113.26chemical hair straightening agents, chemical hair joining agents, permanent wave styles, 113.27or chemical hair bleaching agents applied to growing human hair. For purposes of this 113.28section, "simple hair braiding devices" means clips, combs, curlers, curling irons, hairpins, 113.29rollers, scissors, needles, thread, and hair binders including adhesives, if necessary, that 113.30are required solely for hair braiding.113.31    Subd. 3.Requirements.In order to qualify for initial registration, any person 113.32engaged in hair braiding solely for compensation as a profession shall satisfactorily 113.33complete instruction at either an accredited school or by an individual, except persons 113.34licensed as cosmetologists approved by the board. Instruction includes coursework 114.1covering the topics of health, safety, sanitation, and state laws related to cosmetology not 114.2to exceed 30 hours. The coursework is encouraged to be provided in a foreign language 114.3format and such availability shall be reported to and posted by the Minnesota Board 114.4of Barber and Cosmetology Examiners.114.5    Subd. 4.Curriculum.An accredited school or an individual approved by the board 114.6desiring to provide the coursework required under subdivision 3 shall have curriculum in 114.7place by January 1, 2008.114.8EFFECTIVE DATE.This section is effective July 1, 2008, except subdivision 4 is 114.9effective the day following final enactment.114.10    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:114.11    Subdivision 1. Examination of records. The commissioner may enter during 114.12reasonable office hours or upon request and inspect the place of business or employment of 114.13any employer of employees working in the state, to examine and inspect books, registers, 114.14payrolls, and other records of any employer that in any way relate to wages, hours, and 114.15other conditions of employment of any employees. The commissioner may transcribe any 114.16or all of the books, registers, payrolls, and other records as the commissioner deems 114.17necessary or appropriate and may question the employees to ascertain compliance with 114.18sections 
         177.21 to 
         177.35 177.435. The commissioner may investigate wage claims or 114.19complaints by an employee against an employer if the failure to pay a wage may violate 114.20Minnesota law or an order or rule of the department. 114.21    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:114.22    Subd. 4. Compliance orders. The commissioner may issue an order requiring an 114.23employer to comply with sections 
         177.21 to 
         177.35 177.435, 
         181.02, 
         181.03, 
         181.031, 114.24181.032
         , 
         181.101, 
         181.11, 
         181.12, 
         181.13, 
         181.14, 
         181.145, 
         181.15, and181.79, 181.932, 114.25and 181.9325, or with any rule promulgated under section 
         177.28. The department shall 114.26serve the order upon the employer or the employer's authorized representative in person or 114.27by certified mail at the employer's place of business. An employer who wishes to contest 114.28the order must file written notice of objection to the order with the commissioner within 114.2915 calendar days after being served with the order. A contested case proceeding must then 114.30be held in accordance with sections 
         14.57 to 
         14.69. If, within 15 calendar days after being 114.31served with the order, the employer fails to file a written notice of objection with the 114.32commissioner, the order becomes a final order of the commissioner. 114.33    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 5, is amended to read:115.1    Subd. 5. Civil actions.(a) The commissioner may bring an action in the district 115.2court where an employer resides or where the commissioner maintains an office to enforce 115.3or require compliance with orders issued under subdivision 4.115.4    (b) If the district court determines that a violation of section 181.932 or 181.9325 115.5occurred, the court may order any appropriate relief, including but not limited to 115.6reinstatement, back pay, restoration of lost service credit, if appropriate, compensatory 115.7damages, and the expungement of any adverse records of a state employee or applicant 115.8for state employment who was the subject of the alleged acts of misconduct, and any 115.9appropriate relief as described in section 181.936.115.10    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:115.11    Subd. 8. Court actions; suits brought by private parties. An employee may bring 115.12a civil action seeking redress for a violation or violations of sections 
         177.21 to 
         177.35115.13177.44 directly to district court. An employer who pays an employee less than the wages 115.14and overtime compensation to which the employee is entitled under sections 
         177.21 to 115.15177.35177.44 is liable to the employee for the full amount of the wages, gratuities, and 115.16overtime compensation, less any amount the employer is able to establish was actually 115.17paid to the employee and for an additional equal amount as liquidated damages. In 115.18addition, in an action under this subdivision the employee may seek damages and other 115.19appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement 115.20between the employee and the employer to work for less than the applicable wage is not 115.21a defense to the action. 115.22    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:115.23    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may 115.24be filed in the district court of the county wherein a violation or violations of sections 115.25177.21
          to 
         177.35177.44 are alleged to have been committed, where the respondent resides 115.26or has a principal place of business, or any other court of competent jurisdiction. The 115.27action may be brought by one or more employees. 115.28    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:115.29    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8, 115.30the court shall order an employer who is found to have committed a violation or violations 115.31of sections 
         177.21 to 
         177.35177.44 to pay to the employee or employees reasonable costs, 115.32disbursements, witness fees, and attorney fees. 116.1    Sec. 8. Minnesota Statutes 2006, section 177.27, is amended by adding a subdivision 116.2to read:116.3    Subd. 11.Investigation of certain complaints.(a) The commissioner shall conduct 116.4an investigation of any matter that alleges a violation of sections 181.932 and 181.9325. 116.5The identity of the person providing the information that initiated the investigation shall 116.6be classified as private data, pursuant to section 13.02, subdivision 12, except that the 116.7identity may be disclosed to a law enforcement agency that is conducting a criminal 116.8investigation of the matter.116.9    (b) For each investigation completed, if the commissioner determines that there is 116.10reasonable cause to believe that an employer has violated section 181.932 or 181.9325, 116.11the commissioner shall report the nature and details of the alleged violation to the head 116.12of the employing agency or the appropriate appointing authority. If appropriate, the 116.13commissioner shall report this information to the attorney general, the policy committees 116.14of the house of representatives and senate having jurisdiction over the subject involved, 116.15and to any other authority that the commissioner deems appropriate. In any case 116.16in which the commissioner submits a report of alleged violations to the head of the 116.17employing agency or appropriate appointing authority, that individual shall report to the 116.18commissioner with respect to any action taken by the individual regarding the activity, the 116.19first report being transmitted no later than 30 days after the date of the auditor's report, 116.20and monthly thereafter until final action has been taken.116.21    (c) This subdivision shall not limit any authority conferred upon the attorney general 116.22or other department or agency of government to investigate and prosecute any matter.116.23    (d) The commissioner shall have all the powers and authority described in this 116.24section to conduct investigations pursuant to this subdivision.116.25    Sec. 9. [177.275] INVESTIGATION PROCEDURE.116.26    (a) The commissioner shall initiate an investigation of a written complaint of 116.27reprisal or retaliation in public employment as prohibited by section 181.932 or 181.9325 116.28within ten working days of its submission. The commissioner shall complete findings 116.29of the investigation within 60 working days thereafter, and shall provide a copy of the 116.30findings to the complaining employee or applicant for employment and to the appropriate 116.31supervisor, manager, employee, or appointing authority. When the allegations contained 116.32in a complaint of reprisal or retaliation are the same as, or similar to, those contained in 116.33another appeal, the commissioner may consolidate the appeals into the most appropriate 116.34format. In these cases, the time limits described in this subdivision shall not apply.117.1    (b) If the commissioner finds that the supervisor, manager, employee, or appointing 117.2power retaliated against the complainant for engaging in protected whistle-blower 117.3activities, the commissioner may issue a compliance order under section 177.27, 117.4subdivision 4.117.5    (c) In order for the governor and the legislature to determine the need to continue 117.6or modify state personnel procedures as they relate to the investigations of reprisals or 117.7retaliation for the disclosure of information by public employees, the commissioner, by 117.8June 30 of each year, shall submit a report to the governor and the legislature regarding 117.9complaints filed, hearings held, and legal actions taken under this section.117.10    Sec. 10. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:117.11    Subdivision 1. General authority. The commissioner may adopt rules, including 117.12definitions of terms, to carry out the purposes of sections 
         177.21 to 
         177.35 177.44, to 117.13prevent the circumvention or evasion of those sections, and to safeguard the minimum 117.14wage and overtime rates established by sections 
         177.24 and 
         177.25. 117.15    Sec. 11. Minnesota Statutes 2006, section 177.30, is amended to read:117.16177.30 KEEPING RECORDS; PENALTY.117.17    Every employer subject to sections 
         177.21 to 
         177.35177.44 must make and keep a 117.18record of: 117.19    (1) the name, address, and occupation of each employee;117.20    (2) the rate of pay, and the amount paid each pay period to each employee;117.21    (3) the hours worked each day and each workweek by the employee; and117.22    (4) for each employer subject to sections 177.41 to 177.44, and while performing 117.23work on public works projects funded in whole or in part with state funds, the prevailing 117.24wage master job classification of each employee working on the project for each hour 117.25worked; and117.26    (4) (5) other information the commissioner finds necessary and appropriate to 117.27enforce sections 
         177.21 to 
         177.35. The records must be kept for three years in or near the 117.28premises where an employee works except each employer subject to sections 177.41 to 117.29177.44, and while performing work on public works projects funded in whole or in part 117.30with state funds, the records must be kept for three years after the contracting authority 117.31has made final payment on the public works project. 117.32    The commissioner may fine an employer up to $1,000 for each failure to maintain 117.33records as required by this section. This penalty is in addition to any penalties provided 117.34under section 
         177.32, subdivision 1. In determining the amount of a civil penalty under 118.1this subdivision, the appropriateness of such penalty to the size of the employer's business 118.2and the gravity of the violation shall be considered. 118.3    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:118.4    Subd. 3. Contract requirements. The contract must specifically state the prevailing 118.5wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also 118.6provide that the contracting authority may demand and the contractor or subcontractor 118.7shall furnish to the contracting authority, copies of any and all payrolls, and that the 118.8contracting authority may examine all records relating to wages paid laborers or mechanics 118.9on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision 118.10are in addition to any other requirements or authority set forth in other laws or rules for 118.11work to which sections 177.41 to 177.44 apply.118.12    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:118.13    Subd. 4. Determination by commissioner; posting; petition for reconsideration.118.14    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all 118.15trades and occupations required in any project must be ascertained before the state asks for 118.16bids. The commissioner of labor and industry shall investigate as necessary to ascertain 118.17the information. The commissionerEach contractor and subcontractor performing work 118.18on a public project shall keep the information posted on the project in at least one 118.19conspicuous place for the information of the employees working on the project. A person 118.20aggrieved by a final determination of the commissioner may petition the commissioner for 118.21reconsideration of findings. A person aggrieved by a decision of the commissioner after 118.22reconsideration may, within 20 days after the decision, petition the commissioner for a 118.23public hearing in the manner of a contested case under sections 
         14.57 to 
         14.61. 118.24    Sec. 14. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:118.25    Subd. 6. Examination of records; investigation by the department. The 118.26Department of Labor and Industry shall enforce this section. The department may 118.27demand, and the contractor and subcontractor shall furnish to the department, copies 118.28of any or all payrolls. The department may examine all records relating to wages paid 118.29laborers or mechanics on work to which sections 
         177.41 to 
         177.44 apply. The department 118.30shall employ at least three investigators to perform on-site project reviews, receive and 118.31investigate complaints of violations of this section, and conduct training and outreach to 118.32contractors and contracting authorities for public works projects financed in whole or 118.33in part with state funds.119.1    Sec. 15. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision 119.2to read:119.3    Subd. 6a.Prevailing wage violations.Upon issuing a compliance order to an 119.4employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to 119.5177.44, the commissioner shall issue a withholding order to the contracting authority 119.6ordering the contracting authority to withhold payment of sufficient sum to the prime 119.7or general contractor on the project to satisfy the back wages assessed or otherwise 119.8cure the violation, and the contracting authority must withhold the sum ordered until 119.9the compliance order has become a final order of the commissioner and has been fully 119.10paid or otherwise resolved by the employer.119.11    During an investigation of a violation of sections 177.41 to 177.44 which the 119.12commissioner reasonably determines is likely to result in the finding of a violation of 119.13sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section 119.14177.27, subdivision 4, the commissioner may notify the contracting authority of the 119.15determination and the amount expected to be assessed and the contracting authority shall 119.16give the commissioner 90 days' prior notice of the date the contracting authority intends to 119.17make final payment.119.18    Sec. 16. [181.723] DEFINITIONS.119.19    Subdivision 1.Scope.The definitions in this subdivision apply to this section.119.20    (a) "Person" means any individual, limited liability corporation, corporation, 119.21partnership, incorporated or unincorporated association, sole proprietorship, joint stock 119.22company, or any other legal or commercial entity.119.23    (b) "Department" means the Department of Labor and Industry.119.24    (c) "Commissioner" means the commissioner of labor and industry or a duly 119.25designated representative of the commissioner who is either an employee of the 119.26Department of Labor and Industry or person working under contract with the Department 119.27of Labor and Industry.119.28    (d) "Individual" means a human being.119.29    (e) "Day" means calendar day unless otherwise provided.119.30    (f) "Knowingly" means knew or could have known with the exercise of reasonable 119.31diligence.119.32    (g) "Document" or "documents" includes papers; books; records; memoranda; data; 119.33contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 119.34records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars 119.35maintained in any form or manner.120.1    Subd. 2.Limited application.This section only applies to individuals performing 120.2public or private sector commercial or residential building construction or improvement 120.3services.120.4    Subd. 3.Employee-employer relationship.Except as provided in subdivision 120.54, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an 120.6individual who performs services for a person that are in the course of the person's trade, 120.7business, profession, or occupation is an employee of that person and that person is an 120.8employer of the individual.120.9    Subd. 4.Independent contractor.An individual is an independent contractor and 120.10not an employee of the person for whom the individual is performing services in the course 120.11of the person's trade, business, profession, or occupation only if (a) the individual holds 120.12a current independent contractor exemption certificate issued by the commissioner; and 120.13(b) the individual is performing services for the person under the independent contractor 120.14exemption certificate as provided in subdivision 6. The requirements in clauses (a) and (b) 120.15must be met in order to qualify as an independent contractor and not as an employee of 120.16the person for whom the individual is performing services in the course of the person's 120.17trade, business, profession, or occupation.120.18    Subd. 5.Application.To obtain an independent contractor exemption certificate, 120.19the individual must submit, in the manner prescribed by the commissioner, a complete 120.20application and the certificate fee required under subdivision 14.120.21    (a) A complete application must include all of the following information:120.22    (1) the individual's full name;120.23    (2) the individual's residence address and telephone number;120.24    (3) the individual's business name, address, and telephone number;120.25    (4) the services for which the individual is seeking an independent contractor 120.26exemption certificate;120.27    (5) the individual's Social Security number;120.28    (6) the individual's or the individual's business federal employer identification 120.29number, if a number has been issued to the individual or the individual's business;120.30    (7) any information or documentation that the commissioner requires by rule that 120.31will assist the department in determining whether to grant or deny the individual's 120.32application; and120.33    (8) The individual's sworn statement that the individual meets all of the following 120.34conditions:120.35    (i) the individual maintains a separate business with the individual's own office, 120.36equipment, materials, and other facilities;121.1    (ii) the individual holds or has applied for a federal employer identification number 121.2or has filed business or self-employment income tax returns with the federal Internal 121.3Revenue Service if the person has performed services in the previous year for which the 121.4individual is seeking the independent contractor exemption certificate;121.5    (iii) the individual operates under contracts to perform specific services for specific 121.6amounts of money and under which the individual controls the means of performing the 121.7services;121.8    (iv) the individual incurs the main expenses related to the service that the individual 121.9performs under contract;121.10    (v) the individual is responsible for the satisfactory completion of services that the 121.11individual contracts to perform and is liable for a failure to complete the service;121.12    (vi) the individual receives compensation for service performed under a contract on 121.13a commission or per-job or competitive bid basis and not on any other basis;121.14    (vii) the individual may realize a profit or suffer a loss under contracts to perform 121.15service;121.16    (viii) the individual has continuing or recurring business liabilities or obligations; and121.17    (ix) the success or failure of the individual's business depends on the relationship of 121.18business receipts to expenditures.121.19    (b) Within 30 days of receiving a complete application and the certificate fee, the 121.20commissioner must either grant or deny the application. The commissioner may deny 121.21an application for an independent contractor exemption certificate if the individual has 121.22not submitted a complete application and certificate fee or if the individual does not 121.23meet all of the conditions for holding the independent contractor exemption certificate. 121.24The commissioner may revoke an independent contractor exemption certificate if the 121.25commissioner determines that the individual no longer meets all of the conditions for 121.26holding the independent contractor exemption certificate, commits any of the actions 121.27set out in subdivision 7, or fails to cooperate with a department investigation into the 121.28continued validity of the individual's certificate. Once issued, an independent contractor 121.29exemption certificate remains in effect for two years unless:121.30    (1) revoked by the commissioner; or121.31    (2) canceled by the individual.121.32    (c) If the department denies an individual's original or renewal application for 121.33an independent contractor exemption certificate or revokes an independent contractor 121.34exemption certificate, the commissioner shall issue to the individual an order denying or 121.35revoking the certificate. The commissioner may issue an administrative penalty order to 121.36an individual or person who commits any of the actions set out in subdivision 7.122.1    (d) An individual or person to whom the commissioner issues an order under 122.2paragraph (c) shall have 30 days after service of the order to request a hearing. The request 122.3for hearing must be in writing and must be served on or faxed to the commissioner at the 122.4address or fax number specified in the order by the 30th day after service of the order. 122.5If the individual does not request a hearing or if the individual's request for a hearing is 122.6not served on or faxed to the commissioner by the 30th day after service of the order, the 122.7order shall become a final order of the commissioner and will not be subject to review 122.8by any court or agency. The date on which a request for hearing is served by mail shall 122.9be the postmark date on the envelope in which the request for hearing is mailed. If the 122.10individual serves or faxes a timely request for hearing, the hearing shall be a contested 122.11case hearing and shall be held in accordance with chapter 14.122.12    Subd. 6.Qualifications for exemption certificate.An individual is performing 122.13services for a person under an independent contractor exemption certificate if:122.14    (a) the individual is performing services listed on the individual's independent 122.15contractor exemption certificate;122.16    (b) at the time the individual is performing services listed on the individual's 122.17independent contractor exemption certificate, the individual meets all of the following 122.18conditions:122.19    (1) the individual maintains a separate business with the individual's own office, 122.20equipment, materials, and other facilities;122.21    (2) the individual holds or has applied for a federal employer identification number 122.22or has filed business or self-employment income tax returns with the federal Internal 122.23Revenue Service if the individual performed services in the previous year for which the 122.24individual has the independent contractor exemption certificate;122.25    (3) the individual is operating under contract to perform the specific services for 122.26the person for specific amounts of money and under which the individual controls the 122.27means of performing the services;122.28    (4) the individual is incurring the main expenses related to the services that the 122.29individual is performing for the person under the contract;122.30    (5) the individual is responsible for the satisfactory completion of the services 122.31that the individual has contracted to perform for the person and is liable for a failure 122.32to complete the services;122.33    (6) the individual receives compensation from the person for the services performed 122.34under the contract on a commission or per-job or competitive bid basis and not on any 122.35other basis;123.1    (7) the individual may realize a profit or suffers a loss under the contract to perform 123.2services for the person;123.3    (8) the individual has continuing or recurring business liabilities or obligations; and123.4    (9) the success or failure of the individual's business depends on the relationship of 123.5business receipts to expenditures.123.6    Subd. 7.Prohibited activities.(a) An individual shall not:123.7    (1) perform work as an independent contractor without first obtaining from the 123.8department an independent contractor exemption certificate;123.9    (2) perform work as an independent contractor when the department has denied or 123.10revoked the individual's independent contractor exemption certificate;123.11    (3) transfer to another individual or allow another individual to use the individual's 123.12independent contractor exemption certificate;123.13    (4) alter or falsify an independent contractor exemption certificate;123.14    (5) misrepresent the individual's status as an independent contractor; or123.15    (6) make a false material statement, representation, or certification; omit material 123.16information; or alter, conceal, or fail to file a document required by this section or any rule 123.17promulgated by the commissioner under rulemaking authority set out in this section.123.18    (b) A person for whom an individual is performing services shall not:123.19    (1) require an individual through coercion, misrepresentation, or fraudulent means to 123.20adopt independent contractor status;123.21    (2) knowingly misrepresent that an individual who has not been issued an 123.22independent contractor exemption certificate or is not performing services for the person 123.23under an independent contractor exemption certificate is an independent contractor; or123.24    (3) make a false material statement, representation, or certification; omit material 123.25information; or alter, conceal, or fail to file a document required by this section or any rule 123.26promulgated by the commissioner under rulemaking authority set out in this section.123.27    (c) A person for whom an individual is performing services must obtain a copy of the 123.28individual's independent contractor exemption certificate before services may commence. 123.29A copy of the independent contractor exemption certificate must be retained for five years 123.30from the date of receipt by the person for whom an individual is performing services.123.31    Subd. 8.Remedies.(a) An individual or person who violates any provision of 123.32subdivision 7 is subject to a penalty to be assessed by the department of up to $1,000 for 123.33each violation. The department shall deposit penalties in the assigned risk safety account.123.34    (b) An individual who has been injured by a violation of subdivision 7, paragraph 123.35(b), may bring a civil action for damages against the violator. If the individual is 123.36determined to be an employee or an independent contractor considered an employee of 124.1the violator of subdivision 7, paragraph (b), the employee's representative as defined in 124.2section 179.01, subdivision 5, may bring a civil action for damages against the violator 124.3on behalf of the employee. In addition to damages the court may award attorney fees, 124.4costs, and disbursements to a recovery under this provision.124.5    (c) Any court finding that a violation of subdivision 7 has occurred shall 124.6transmit a copy of its findings of fact and conclusion of law to the commissioner. The 124.7commissioner shall report the findings to the relevant state and federal agencies, including 124.8the commissioner of commerce, the commissioner of employment and economic 124.9development, the commissioner of revenue, the federal Internal Revenue Service, and the 124.10United States Department of Labor.124.11    Subd. 9.Commissioner's powers.(a) In order to carry out the purposes of this 124.12section, the commissioner may:124.13    (1) administer oaths and affirmations, certify official acts, interview, question, take 124.14oral or written statements, and take depositions;124.15    (2) request, examine, take possession of, photograph, record, and copy any 124.16documents, equipment, or materials;124.17    (3) at a time and place indicated by the commissioner, request persons to appear 124.18before the commissioner to give testimony and produce documents, equipment, or 124.19materials;124.20    (4) issue subpoenas to compel persons to appear before the commissioner to give 124.21testimony and produce documents, equipment, or materials; and124.22    (5) with or without notice, enter without delay upon any property, public or private, 124.23for the purpose of taking any action authorized under this subdivision or the applicable 124.24law, including obtaining information or conducting inspections or investigations.124.25    (b) Persons requested by the commissioner to give testimony or produce documents, 124.26equipment, or materials shall respond within the time and in the manner specified by the 124.27commissioner. If no time to respond is specified in the request, then a response shall be 124.28submitted within 30 days of the commissioner's service of the request.124.29    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property 124.30owner's representative, or lessee's representative to permit the commissioner's entry onto 124.31property as provided in paragraph (a), the commissioner may apply for an administrative 124.32inspection order in the Ramsey County District Court or, at the commissioner's discretion, 124.33in the district court in the county in which the property is located. The commissioner may 124.34anticipate that a property owner or lessee will refuse entry if the property owner, lessee, 124.35property owner's representative, or lessee's representative has refused to permit entry on a 124.36prior occasion or has informed the commissioner that entry will be refused. Upon showing 125.1of administrative probable cause by the commissioner, the district court shall issue an 125.2administrative inspection order that compels the property owner or lessee to permit the 125.3commissioner to enter the property for the purposes specified in paragraph (a).125.4    (d) Upon the application of the commissioner, a district court shall treat the failure of 125.5any person to obey a subpoena lawfully issued by the commissioner under this subdivision 125.6as a contempt of court.125.7    Subd. 10.Notice requirements.Unless otherwise specified, service of a document 125.8on a person under this section or section 326B.083 may be by mail, by personal service, 125.9or in accordance with any consent to service filed with the commissioner. Service by 125.10mail shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, 125.11subpart 2. Personal service shall be accomplished in the manner provided in Minnesota 125.12Rules, part 1400.5550, subpart 3.125.13    Subd. 11.Facsimile; timely service.When this section or section 326B.083 125.14permits a request for reconsideration or request for hearing to be served by facsimile on 125.15the commissioner, the facsimile shall not exceed 15 pages in length. The request shall be 125.16considered timely served if the facsimile is received by the commissioner, at the facsimile 125.17number identified by the commissioner in the order or notice of violation, no later than 125.184:30 p.m. central time on the last day permitted for faxing the request. Where the quality 125.19or authenticity of the faxed request is at issue, the commissioner may require the original 125.20request to be filed. Where the commissioner has not identified quality or authenticity 125.21of the faxed request as an issue and the request has been faxed in accordance with this 125.22subdivision, the person faxing the request does not need to file the original request with 125.23the commissioner.125.24    Subd. 12.Time period computation.In computing any period of time prescribed 125.25or allowed by this section, the day of the act, event, or default from which the designated 125.26period of time begins to run shall not be included. The last day of the period so computed 125.27shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the 125.28period runs until the next day which is not a Saturday, Sunday, or legal holiday.125.29    Subd. 13.Rulemaking.The commissioner may, in consultation with the 125.30commissioner of revenue and the commissioner of employment and economic 125.31development, adopt, amend, suspend, and repeal rules under the rulemaking provisions 125.32of chapter 14 that relate to the commissioner's responsibilities under this section. This 125.33subdivision is effective the day following final enactment.125.34    Subd. 14.Fee.The certificate fee for the original application and for the renewal 125.35of an independent contractor exemption certificate shall be $150. If an individual 125.36simultaneously submits an application for both an independent contractor exemption 126.1certificate under this section and a license under section 326.98, the application fee for 126.2the independent contractor exemption certificate shall be reduced to $100. Fees collected 126.3under this subdivision are deposited in the general fund. 126.4    Subd. 15.Notice to commissioner; review by commissioner of revenue.When 126.5the commissioner has reason to believe that an individual who holds a certificate has failed 126.6to maintain all the conditions required by subdivision 3 or is not performing services for a 126.7person under the independent contractor exemption certificate, the commissioner must 126.8notify the commissioner of revenue and the commissioner of employment and economic 126.9development. Upon receipt of notification from the commissioner that an individual who 126.10holds a certificate has failed to maintain all the conditions required by subdivision 3 126.11or is not performing services for a person under the independent contractor exemption 126.12certificate, the commissioner of revenue must review the information returns required 126.13under section 6041A of the Internal Revenue Code. The commissioner of revenue shall 126.14also review the submitted certification that is applicable to returns audited or investigated 126.15under section 289A.35.126.16    Subd. 16.Data classified.Certifications issued by the commissioner are public 126.17data. Applications and required documentation submitted by an individual is private 126.18data on an individual. Upon request of the Department of Revenue or the Department 126.19of Employment and Economic Development, the commissioner may release to the 126.20Department of Revenue and the Department of Employment and Economic Development 126.21applications and required documentation submitted by individuals and investigative data 126.22that relates to the department's issuance or denial of applications and the department's 126.23revocations of certificates. Except as otherwise provided by this subdivision, the 126.24department's investigative data shall be classified as provided in chapter 13.126.25EFFECTIVE DATE.This section is effective July 1, 2008.126.26    Sec. 17. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:126.27    Subdivision 1. Prohibited action. An employer shall not discharge, discipline, 126.28threaten, otherwise discriminate against, or penalize an employee regarding the employee's 126.29compensation, terms, conditions, location, or privileges of employment because:126.30    (a) the employee, or a person acting on behalf of an employee, in good faith, reports 126.31a violation or suspected violation of any federal or state law or rule adopted pursuant 126.32to law to an employer or to any governmental body or law enforcement official and 126.33the alleged violation involves a matter of public concern, including, but not limited to, 126.34violations that create a specific danger to the public health, safety, or environment;127.1    (b) the employee is requested by a public body or office to participate in an 127.2investigation, hearing, inquiry;127.3    (c) the employee refuses an employer's order to perform an action that the employee 127.4has an objective basis in fact to believe violates any state or federal law or rule or 127.5regulation adopted pursuant to law which violation the employee reasonably believes 127.6is a matter of public concern, including, but not limited to, violations that create a 127.7specific danger to the public health, safety, or environment, and the employee informs the 127.8employer that the order is being refused for that reason; or127.9    (d) the employee, in good faith, reports a situation in which the quality of health care 127.10services provided by a health care facility, organization, or health care provider violates a 127.11standard established by federal or state law or a professionally recognized national clinical 127.12or ethical standard and potentially places the public at risk of harm.;127.13    (e) a public employee refuses to alter, dilute, or suppress the objective representation 127.14or communication of scientific or technical data or findings, including but not limited to, 127.15findings of economic or environmental impact, or findings indicating consequences for 127.16the public's health or safety; or127.17    (f) a public employee communicates the findings of a scientific or technical study 127.18that the employee, in good faith, believes to be truthful and accurate, including reports to a 127.19governmental body or law enforcement official.127.20The disclosures protected pursuant to this section do not authorize the disclosure of trade 127.21secret information otherwise protected by law.127.22    Sec. 18. [181.9325] USE OF AUTHORITY TO INFLUENCE OR INTERFERE 127.23WITH DISCLOSURE OF INFORMATION.127.24    (a) A public employer may not directly or indirectly use or attempt to use the 127.25employer's official authority or influence for the purpose of intimidating, threatening, 127.26coercing, or attempting to intimidate, threaten, or coerce any person for the purpose of 127.27interfering with the rights described in section 181.932, or for the purpose of persuading 127.28the person to waive or disclaim any other legal rights related to the person's employment.127.29    (b) For purposes of this section, "use of official authority or influence" includes: 127.30promising to confer, or conferring, any benefit; effecting, or threatening to effect, any 127.31reprisal; or taking, or directing others to take, or recommending, processing, or approving, 127.32any personnel action, including but not limited to appointment, promotion, transfer, 127.33assignment, performance evaluation, suspension, or other disciplinary action.128.1    Sec. 19. Minnesota Statutes 2006, section 181.935, is amended to read:128.2181.935 INDIVIDUAL REMEDIES; PENALTY.128.3    (a) In addition to any remedies otherwise provided by law, an employee injured 128.4by a violation of section 
         181.932or 181.9325 may bring a civil action to recover any 128.5and all damages recoverable at law, together with costs and disbursements, including 128.6reasonable attorney's fees, and may receive such injunctive and other equitable relief as 128.7determined by the court. 128.8    (b) An employer who failed to notify, as required under section 
         181.933 or 
         181.934, 128.9an employee injured by a violation of section 
         181.932 is subject to a civil penalty of $25 128.10per day per injured employee not to exceed $750 per injured employee. 128.11    Sec. 20. [181.936] REPRISALS FOR DISCLOSURE OF IMPROPER 128.12GOVERNMENTAL ACTIVITIES; COMPLAINT PROCEDURE; PENALTIES.128.13    (a) A public employee or applicant for public employment who files a written 128.14complaint with the employee's or applicant's supervisor, manager, or the appointing 128.15power alleging actual or attempted acts of reprisal, retaliation, threats, coercion, or 128.16similar improper acts prohibited by section 181.9325, may also file a copy of the written 128.17complaint with the commissioner of labor and industry, together with a sworn statement 128.18that the contents of the written complaint are true, or are believed by the affiant to be true, 128.19under penalty of perjury. The complaint filed with the commissioner shall be filed within 128.2012 months of the most recent act of reprisal complained about.128.21    (b) Any person who intentionally engages in acts of reprisal, retaliation, threats, 128.22coercion, or similar acts against a public employee or applicant for public employment 128.23for having made a protected disclosure under section 181.932, is subject to a fine not to 128.24exceed $10,000 and imprisonment in the county jail for a period not to exceed one year.128.25    (c) In addition to all other penalties provided by law, any person who intentionally 128.26engages in acts of reprisal, retaliation, threats, coercion, or similar acts against a public 128.27employee or applicant for public employment for having made a protected disclosure shall 128.28be liable in an action for damages brought against the person by the injured party. Punitive 128.29damages may be awarded by the court where the acts of the offending party are proven to 128.30be malicious. Where liability has been established, the injured party shall also be entitled 128.31to reasonable attorney fees as provided by law. However, any action for damages shall not 128.32be available to the injured party unless the injured party has first filed a complaint with the 128.33commissioner of labor and industry under paragraph (a), and the department has issued, or 128.34failed to issue, findings under section 177.275.129.1    (d) This section is not intended to prevent an appointing power, manager, or 129.2supervisor from taking, directing others to take, recommending, or approving any 129.3personnel action or from taking or failing to take a personnel action with respect to any 129.4public employee or applicant for public employment if the appointing power, manager, or 129.5supervisor reasonably believes any action or inaction is justified on the basis of evidence 129.6separate and apart from the fact that the person has made a protected disclosure under 129.7section 181.932.129.8    (e) In any civil action or administrative proceeding, once it has been demonstrated 129.9by a preponderance of evidence that an activity protected by sections 177.27, 177.275, 129.10181.932, and 181.9325 was a contributing factor in the alleged retaliation against a former, 129.11current, or prospective employee, the burden of proof shall be on the supervisor, manager, 129.12or appointing power to demonstrate by clear and convincing evidence that the alleged 129.13action would have occurred for legitimate, independent reasons even if the employee had 129.14not engaged in protected disclosures or refused an illegal order. If the supervisor, manager, 129.15or appointing power fails to meet this burden of proof in an adverse action against the 129.16employee in any administrative review, challenge, or adjudication in which retaliation 129.17has been demonstrated to be a contributing factor, the employee shall have a complete 129.18affirmative defense in the adverse action.129.19    (f) Nothing in sections 177.27, 177.275, 181.932, and 181.9325 shall be deemed to 129.20diminish the rights, privileges, or remedies of any employee under any other federal or 129.21state law or under any employment contract or collective bargaining agreement.129.22    Sec. 21. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:129.23    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who, 129.24during some part of the period of the sales representative agreement:129.25    (1) is a resident of Minnesota or maintains that person's principal place of business 129.26in Minnesota; or129.27    (2) whose geographical territory specified in the sales representative agreement 129.28includes part or all of Minnesota.129.29    (b) To be effective, any demand for arbitration under subdivision 5 must be made 129.30in writing and delivered to the principal on or before one year after the effective date of 129.31the termination of the agreement.129.32    (c) A provision in any contract between a sales representative dealing in plumbing 129.33equipment or supplies and a principal purporting to waive any provision of this act, 129.34whether by express waiver or by a provision stipulating that the contract is subject to the 129.35laws of another state, shall be void.130.1    Sec. 22. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:130.2    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by 130.3rule, prescribe minimum standards which shall be uniform, and which standards shall 130.4thereafter be effective for all new plumbing installations, including additions, extensions, 130.5alterations, and replacements connected with any water or sewage disposal system owned 130.6or operated by or for any municipality, institution, factory, office building, hotel, apartment 130.7building, or any other place of business regardless of location or the population of the 130.8city or town in which located. Notwithstanding the provisions of Minnesota Rules, part 130.94715.3130, as they apply to review of plans and specifications, the commissioner may 130.10allow plumbing construction, alteration, or extension to proceed without approval of the 130.11plans or specifications by the commissioner.130.12    Except for powers granted to the Plumbing Board, the commissioner of labor and 130.13industry shall administer the provisions of sections 
         326.37 to 
         326.45 and for such purposes 130.14may employ plumbing inspectors and other assistants.130.15    Sec. 23. [326.372] PLUMBING BOARD.130.16    Subdivision 1.Composition.(a) The Plumbing Board shall consist of 12 voting 130.17members who must be residents of the state, appointed by the governor, and confirmed 130.18by the senate. The commissioner of labor and industry or the commissioner's designee 130.19shall be a voting member. The first appointed board members shall serve an initial term 130.20of four years, except where designated otherwise. The governor shall then reappoint the 130.21current members or appoint replacement members, all or in part, to subsequent three-year 130.22terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 130.23occurring with less than six months time remaining in the term shall be filled for the 130.24existing term and the following three-year term. Of the 11 appointed members, the 130.25composition shall be as follows:130.26    (1) two members shall be municipal plumbing inspectors, one from the seven-county 130.27metro area and one from greater Minnesota;130.28    (2) one member shall be a licensed mechanical engineer;130.29    (3) two members serving an initial term of three years shall be plumbing contractors 130.30or the representative of the contractor, engaged in a commercial scope of plumbing 130.31contracting, one from the metropolitan area and one from greater Minnesota;130.32    (4) two members serving an initial term of three years shall be plumbing contractors 130.33or their representatives, engaged in the residential scope of plumbing contracting, one 130.34from the metro area and one from greater Minnesota; 131.1    (5) two members serving an initial term of two years shall be plumbing 131.2journeypersons engaged in a commercial scope of plumbing systems installation, one 131.3from the metro area and one from greater Minnesota; and131.4    (6) two members serving an initial term of two years shall be plumbing 131.5journeypersons engaged in a residential scope of plumbing systems installation, one from 131.6the metro area and one from greater Minnesota.131.7    (b) Except for the licensed mechanical engineer, all persons appointed to the 131.8council must possess a current Minnesota plumbing license and maintain the license for 131.9the duration of their term.131.10    Subd. 2.Powers.(a) The board shall have the power to:131.11    (1) elect its chair;131.12    (2) specify the plumbing code that must be followed in this state;131.13    (3) maintain a review process to make determinations regarding any complaints, 131.14code amendments, code compliance, and code clarifications filed with the board;131.15    (4) adopt rules necessary for the regulation and licensing of contractors, 131.16journeypersons, apprentices, and other persons engaged in the design, installation, and 131.17alteration of plumbing systems that would include the issuing, renewing, revoking, 131.18refusing to renew, and suspending a plumbing license, except for persons licensed under 131.19sections 326.02 to 326.15;131.20    (5) adopt rules necessary for continuing education for individuals regulated and 131.21licensed under this section; 131.22    (6) make recommendations to the commissioner regarding educational requirements 131.23for plumbing inspectors; and 131.24    (7) pay expenses deemed necessary in the performance of board duties, including: 131.25    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 131.26subdivision 2; and 131.27    (ii) per diem and expenses for its members as provided in section 15.0575, 131.28subdivision 3.131.29    (b) Requests under the review process in paragraph (a), clause (3), may originate 131.30with the municipal inspectors, the plumbing contractors or their employees, and other 131.31persons engaged in the design, installation, and alteration of plumbing systems. The board 131.32shall make its findings known to all parties and the commissioner of labor and industry 131.33within the time period specified by the board.131.34    Subd. 3.Fees and finances.The board shall submit an annual budget to the 131.35commissioner of labor and industry. The commissioner shall collect fees under section 131.36326.42 necessary for the operation and continuance of the board. The commissioner is 132.1responsible for the enforcement of the codes and licensing requirements determined by 132.2the board. The board shall set the fees for licenses and certification under this section. 132.3The commissioner of finance shall make a quarterly certification of the amount necessary 132.4to pay expenses required for operation of the board under subdivision 2, paragraph (a), 132.5clause (6). The certified amount is appropriated to the board for those purposes from 132.6the fees collected under section 326.42.132.7    Sec. 24. Minnesota Statutes 2006, section 326.38, is amended to read:132.8326.38 LOCAL REGULATIONS.132.9    Any city having a system of waterworks or sewerage, or any town in which reside 132.10over 5,000 people exclusive of any statutory cities located therein, or the metropolitan 132.11airports commission, may, by ordinance, adopt local regulations providing for plumbing 132.12permits, bonds, approval of plans, and inspections of plumbing, which regulations are 132.13not in conflict with the plumbing standards on the same subject prescribed by the state 132.14commissioner of health Plumbing Board. No city or such town shall prohibit plumbers 132.15licensed by the state commissioner of healthlabor and industry from engaging in or 132.16working at the business, except cities and statutory cities which, prior to April 21, 1933, 132.17by ordinance required the licensing of plumbers. No city or town may require a license 132.18for persons performing building sewer or water service installation who have completed 132.19pipe laying training as prescribed by the commissioner of labor and industry. Any city 132.20by ordinance may prescribe regulations, reasonable standards, and inspections and grant 132.21permits to any person, firm, or corporation engaged in the business of installing water 132.22softeners, who is not licensed as a master plumber or journeyman plumber by the state 132.23commissioner of health labor and industry, to connect water softening and water filtering 132.24equipment to private residence water distribution systems, where provision has been 132.25previously made therefor and openings left for that purpose or by use of cold water 132.26connections to a domestic water heater; where it is not necessary to rearrange, make any 132.27extension or alteration of, or addition to any pipe, fixture or plumbing connected with 132.28the water system except to connect the water softener, and provided the connections so 132.29made comply with minimum standards prescribed by the state commissioner of health132.30Plumbing Board.132.31    Sec. 25. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:132.32    Subdivision 1. License required; master and journeyman plumbers.In any city 132.33now or hereafter having 5,000 or more population, according to the last federal census, 132.34and having a system of waterworks or sewerage,(a) No person, firm, or corporation shall 133.1engage in or work at the business of a master plumber or, restricted master plumber,133.2journeyman plumber, and restricted journeyman plumber unless licensed to do so by the 133.3state commissioner of healthlabor and industry. A license is not required for persons 133.4performing building sewer or water service installation who have completed pipe laying 133.5training as prescribed by the commissioner of labor and industry. A master plumber may 133.6also work as a journeyman plumber, a restricted journeyman plumber, and a restricted 133.7master plumber. A journeyman plumber may also work as a restricted journeyman 133.8plumber. Anyone not so licensed may do plumbing work which complies with the 133.9provisions of the minimum standard prescribed by the state commissioner of health133.10Plumbing Board on premises or that part of premises owned and actually occupied by the 133.11worker as a residence, unless otherwise forbidden to do so by a local ordinance.133.12    In any such city(b) No person, firm, or corporation shall engage in the business of 133.13installing plumbing nor install plumbing in connection with the dealing in and selling 133.14of plumbing material and supplies unless at all times a licensed master plumber, or in 133.15cities and towns with a population of fewer than 5,000 according to the federal census a 133.16restricted master plumber, who shall be responsible for proper installation, is in charge 133.17of the plumbing work of the person, firm, or corporation.133.18    The Department of HealthPlumbing Board shall prescribe rules, not inconsistent 133.19herewith, for the examination and licensing of plumbers.133.20    Sec. 26. Minnesota Statutes 2006, section 326.401, subdivision 2, is amended to read:133.21    Subd. 2. Journeyman exam. A plumber's apprentice who has completed four years 133.22of practical plumbing experience is eligible to take the journeyman plumbing examination. 133.23Up to 24 months of practical plumbing experience prior to registration as an apprentice 133.24may be applied to the four-year experience requirement. However, none of this practical 133.25plumbing experience may be applied if the person did not have any practical plumbing 133.26experience in the 12-month period immediately prior to registration. The commissioner133.27Plumbing Board may adopt rules to evaluate whether the person's past practical plumbing 133.28experience is applicable in preparing for the journeyman's examination. If two years 133.29after completing the training the person has not taken the examination, the four years 133.30of experience shall be forfeited.133.31    The commissioner may allow an extension of the two-year period for taking the 133.32exam for cases of hardship or other appropriate circumstances.133.33    Sec. 27. [326.402] RESTRICTED PLUMBER LICENSE.134.1    Subdivision 1.Licensure.The commissioner of labor and industry shall grant a 134.2restricted journeyman or master plumber license to an individual if:134.3    (1) the individual completes an application with information required by the 134.4commissioner of labor and industry;134.5    (2) the completed application is accompanied by a fee of $90;134.6    (3) the commissioner of labor and industry receives the completed application and 134.7fee before January 1, 2008;134.8    (4) the completed application demonstrates that the applicant has had at least two 134.9years for a restricted journeyman plumber license or four years for a restricted master 134.10plumber license of practical plumbing experience in the plumbing trade prior to the 134.11application; and134.12    (5) during the entire time for which the applicant is claiming experience in 134.13contracting for plumbing work under clause (4), the applicant was in compliance with all 134.14applicable requirements of section 326.40.134.15    Subd. 2.Use of license.A restricted master plumber and restricted journeyman 134.16plumber may engage in the plumbing trade in all areas of the state except in cities and 134.17towns with a population of more than 5,000 according to the federal census.134.18    Subd. 3.Application period.Applications for restricted master plumber and 134.19restricted journeyman plumber licenses must be submitted to the commissioner prior 134.20to January 1, 2008.134.21    Subd. 4.Renewal; use period for license.A restricted master plumber and 134.22restricted journeyman plumber license must be renewed annually for as long as that 134.23licensee engages in the plumbing trade. Failure to renew a restricted master plumber and 134.24restricted journeyman plumber license within 12 months after the expiration date will 134.25result in permanent forfeiture of the restricted master plumber and restricted journeyman 134.26plumber license.134.27    Subd. 5.Prohibition of transference.A restricted master plumber and restricted 134.28journeyman plumber license may not be transferred or sold to any other person.134.29    Subd. 6.Bond; insurance.A restricted master plumber licensee is subject to the 134.30bond and insurance requirements of section 326.40, subdivision 2, unless the exemption 134.31provided by section 326.40, subdivision 3, applies.134.32    Subd. 7.Fee.The annual fee for the restricted master plumber and restricted 134.33journeyman plumber licenses is the same fee as for a master or journeyman plumber 134.34license, respectively.135.1    Sec. 28. Minnesota Statutes 2006, section 326.405, is amended to read:135.2326.405 RECIPROCITY WITH OTHER STATES.135.3    The commissioner of health may license without examination, upon payment of the 135.4required fee, nonresident applicants who are licensed under the laws of a state having 135.5standards for licensing plumbers which the commissioner determines are substantially 135.6equivalent to the standards of this state if the other state grants similar privileges to 135.7Minnesota residents duly licensed in this state. The commissioner may issue a temporary 135.8license without examination, upon payment of the required fee, nonresident applicants 135.9who are licensed under the laws of a state having standards for licensing which the 135.10commissioner determines are substantially equivalent to the standards of this state if 135.11the other state grants similar privileges to Minnesota residents duly licensed in this 135.12state. Applicants who receive a temporary license under this section may acquire an 135.13aggregate of 24 months of experience before they have to apply and pass the licensing 135.14examination. Applicants must register with the commissioner of labor and industry and 135.15the commissioner shall set a fee for a temporary license. Applicants have five years in 135.16which to comply with this section.135.17    Sec. 29. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:135.18    Subdivision 1. Application. Applications for plumber's license shall be made to the 135.19state commissioner of health labor and industry, with fee. Unless the applicant is entitled 135.20to a renewal, the applicant shall be licensed by the state commissioner of health labor and 135.21industry only after passing a satisfactory examination administered by the examiners135.22commissioner of labor and industry, based upon rules adopted by the Plumbing Board135.23showing fitness. Examination fees for both journeyman and master plumbers shall be in 135.24an amount prescribed by the state commissioner of health labor and industry pursuant to 135.25section 
         144.122. Upon being notified that of having successfully passed the examination 135.26for original license the applicant shall submit an application, with the license fee herein 135.27provided. License fees shall be in an amount prescribed by the state commissioner of 135.28health labor and industry pursuant to section 
         144.122. Licenses shall expire and be 135.29renewed as prescribed by the commissioner pursuant to section 
         144.122. 135.30    Sec. 30. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:135.31    Subd. 2. Regulatory authority; tough person contests. All tough person contests, 135.32including amateur tough person contests, are subject to this chapter. All tough person 135.33contests are subject to American Boxing Commission (ABC) rules. Every contestant 135.34in a tough person contest shall have a physical examination prior to their bouts. Every 136.1contestant in a tough person contest shall wear padded gloves that weigh at least 12 136.2ounces. All tough person bouts are limited to two-minute rounds and a maximum of four 136.3total rounds. Officials at tough person bouts shall be licensed under this chapter.136.4    Sec. 31. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision 136.5to read:136.6    Subd. 3.Regulatory authority; similar sporting events.All mixed martial arts, 136.7ultimate fight contests, and similar sporting events are subject to this chapter.136.8    Sec. 32. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:136.9    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in 136.10the year of its issuance issued after the effective date of this act is valid for one year from 136.11the date it is issued and may be renewed by filing an application for renewal with the 136.12commission and payment of the license fee. An application for a license and renewal of a 136.13license must be on a form provided by the commission. There is a 30-day grace period 136.14during which a license may be renewed if a late filing penalty fee equal to the license fee 136.15is submitted with the regular license fee. A licensee that files late shall not conduct any 136.16activity regulated by this chapter until the commission has renewed the license. If the 136.17licensee fails to apply to the commission within the 30-day grace period, the licensee must 136.18apply for a new license under subdivision 1.136.19    Sec. 33. Minnesota Statutes 2006, section 341.321, is amended to read:136.20341.321 FEE SCHEDULE.136.21    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission 136.22is as follows: 136.23    (1) referees, $35 $45 for each initial license and each renewal; 136.24    (2) promoters, $400 for each initial license and each renewal; 136.25    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal; 136.26    (4) trainers, $35 $45 for each initial license and each renewal; 136.27    (5) ring announcers, $25 $45 for each initial license and each renewal; 136.28    (6) boxers' seconds, $25 $45 for each initial license and each renewal; 136.29    (7) timekeepers, $25 $45 for each initial license and each renewal; and136.30    (8) boxers, $35 $45 for each initial license and each renewal.;136.31    (9) managers, $45 for each initial license and each renewal; and136.32    (10) ringside physicians, $45 for each initial license and each renewal.137.1    (b) The commission shall establish and assess an event fee for each sporting event. 137.2The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as 137.3determined by the commission when the sporting event is scheduled.137.4    (c) All fees collected by the Minnesota Boxing Commission must be deposited in 137.5the Boxing Commission account in the special revenue fund. 137.6    Sec. 34. REPEALER.137.7Minnesota Statutes 2006, section 326.45, is repealed.137.8ARTICLE 9137.9HIGH PRESSURE PIPING137.10    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:137.11326.46 SUPERVISION OF HIGH PRESSURE PIPING.137.12    The Department of Labor and Industry shall supervise all high pressure piping 137.13used on all projects in this state, and may prescribe minimum standards which shall be 137.14uniform under rules adopted by the board.137.15    The department shall employ inspectors and other assistants to carry out the 137.16provisions of sections 
         326.46 to 
         326.52. 137.17    Sec. 2. Minnesota Statutes 2006, section 326.461, is amended by adding a subdivision 137.18to read:137.19    Subd. 1a.Board."Board" means the Board of High Pressure Piping Systems.137.20    Sec. 3. Minnesota Statutes 2006, section 326.47, subdivision 2, is amended to read:137.21    Subd. 2. Permissive municipal regulation. A municipality may, by ordinance, 137.22provide for the inspection of high pressure piping system materials and construction, and 137.23provide that it shall not be constructed or installed except in accordance with minimum 137.24state standards. The authority designated by the ordinance for issuing high pressure piping 137.25permits and assuring compliance with state standards must report to the Department of 137.26Labor and Industry all violations of state high pressure piping standards.137.27    A municipality may not adopt an ordinance with high pressure piping standards that 137.28does not conform to the uniform standards prescribed by the Department of Labor and 137.29Industry board. The Department of Labor and Industry board shall specify by rule the 137.30minimum qualifications for municipal inspectors.137.31    Sec. 4. Minnesota Statutes 2006, section 326.47, subdivision 6, is amended to read:138.1    Subd. 6. Filing and inspection fees. The Department of Labor and Industry 138.2must charge a filing fee set by the commissioner board under section 
         16A.1285 for all 138.3applications for permits to construct or install high pressure piping systems. The fee for 138.4inspection of high pressure piping system construction or installation shall be set by the 138.5commissioner board under section 
         16A.1285. This subdivision does not apply where a 138.6permit is issued by a municipality complying with subdivision 2. 138.7    Sec. 5. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.138.8    Subdivision 1.Composition.(a) The Board of High Pressure Piping Systems shall 138.9consist of 12 members who must be residents of the state, appointed by the governor, and 138.10confirmed by the senate. The commissioner of the Department of Labor and Industry or 138.11the commissioner's designee shall be a voting member. The first appointed board members 138.12shall serve an initial term of four years, except where designated otherwise. The governor 138.13shall then reappoint the current members or appoint replacement members, all or in part, to 138.14subsequent three-year terms. Midterm vacancies shall be filled for the remaining portion 138.15of the term. Vacancies occurring with less than six months time remaining in the term 138.16shall be filled for the existing term and the following three-year term. Of the 11 appointed 138.17members, the composition shall be as follows:138.18    (1) one member shall be a high pressure piping inspector;138.19    (2) one member shall be a licensed mechanical engineer;138.20    (3) one member shall be a representative of the piping industry;138.21    (4) four members shall be high pressure piping contractors or their representatives, 138.22engaged in the scope of high pressure piping, two from the metro area and two from 138.23greater Minnesota;138.24    (5) two members shall be high pressure piping journeypersons engaged in the scope 138.25of high pressure piping systems installation, one from the metro area and one from greater 138.26Minnesota; and138.27    (6) two members shall be representatives from utility companies in Minnesota 138.28who shall serve an initial term of two years.138.29    (b) Except for the licensed mechanical engineer and the members from utilities 138.30companies, all persons appointed to the board must possess a current license or 138.31competency credential required for contractors and persons engaged in the design, 138.32installation, alteration, and inspection of high pressure piping systems.138.33    Subd. 2.Powers.(a) The board shall have the power to:138.34    (1) elect its chair;138.35    (2) specify the high pressure piping code that must be followed in Minnesota;139.1    (3) maintain an appeals committee to make determinations regarding any complaints, 139.2code amendments, code compliance, and code clarifications filed with the board;139.3    (4) adopt rules necessary for the regulation and licensing of contractors, 139.4journeypersons, trainees, and persons engaged in the design, installation, alteration, and 139.5inspection of high pressure piping systems, except for persons licensed under sections 139.6326.02 to 326.15;139.7    (5) adopt rules necessary for continuing education for individuals regulated and 139.8licensed under this section; and139.9    (6) pay expenses deemed necessary in the performance of board duties, including: 139.10    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 139.11subdivision 2; and 139.12    (ii) per diem and expenses for its members as provided in section 15.0575, 139.13subdivision 3.139.14    (b) Complaints filed under this section may originate with high pressure piping 139.15inspectors, contractors, or their employees, or other persons engaged in the design, 139.16installation, and alteration of a high pressure piping system. The board shall make their 139.17findings known to all parties and the commissioner of the Department of Labor and 139.18Industry within the time period specified by the board.139.19    Subd. 3.Fee and finances.The board shall submit an annual budget to the 139.20commissioner of the Department of Labor and Industry. The commissioner shall collect 139.21fees under section 326.47, subdivision 6, necessary for the operation and continuance 139.22of the board. The commissioner is responsible for the enforcement of the codes and 139.23licensing requirements determined by the board. The board shall set the fees for licenses 139.24and certification under this section and for all high pressure piping system permits and 139.25submit the fee structure to the commissioner of labor and industry. The commissioner 139.26of finance shall make a quarterly certification of the amount necessary to pay expenses 139.27required for operation of the board under subdivision 2, paragraph (a), clause (6). The 139.28certified amount is appropriated to the board for those purposes from the fees collected 139.29under section 326.50.139.30    Sec. 6. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:139.31    Subdivision 1. License required; rules; time credit. No person shall engage in 139.32or work at the business of a contracting pipefitter unless issued an individual contracting 139.33pipefitter license to do so by the Department of Labor and Industry under rules prescribed 139.34by the board. No license shall be required for repairs on existing installations. No 139.35person shall engage in or work at the business of journeyman pipefitter unless issued an 140.1individual journeyman pipefitter competency license to do so by the Department of Labor 140.2and Industry under rules prescribed by the board. A person possessing an individual 140.3contracting pipefitter competency license may also work as a journeyman pipefitter.140.4    No person, partnership, firm, or corporation shall install high pressure piping, nor 140.5install high pressure piping in connection with the dealing in and selling of high pressure 140.6pipe material and supplies, unless, at all times, a person possessing a contracting pipefitter 140.7individual competency license or a journeyman pipefitter individual competency license is 140.8responsible for the high pressure pipefitting work conducted by the person, partnership, 140.9firm, or corporation being in conformity with Minnesota Statutes and Minnesota Rules.140.10    The Department of Labor and Industry board shall prescribe rules, not inconsistent 140.11herewith, for the examination and individual competency licensing of contracting 140.12pipefitters and journeyman pipefitters and for issuance of permits by the department and 140.13municipalities for the installation of high pressure piping.140.14    An employee performing the duties of inspector for the Department of Labor and 140.15Industry in regulating pipefitting shall not receive time credit for the inspection duties 140.16when making an application for a license required by this section.140.17    Sec. 7. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:140.18    Subd. 2. High pressure pipefitting business license. Before obtaining a permit 140.19for high pressure piping work, a person, partnership, firm, or corporation must obtain or 140.20utilize a business with a high pressure piping business license.140.21    A person, partnership, firm, or corporation must have at all times as a full-time 140.22employee at least one individual holding an individual contracting pipefitter competency 140.23license. Only full-time employees who hold individual contracting pipefitter licenses 140.24are authorized to obtain high pressure piping permits in the name of the business. The 140.25individual contracting pipefitter competency license holder can be the employee of only 140.26one high pressure piping business at a time.140.27    To retain its business license without reapplication, a person, partnership, firm, or 140.28corporation holding a high pressure piping business license that ceases to employ a person 140.29holding an individual contracting pipefitter competency license shall have 60 days from 140.30the last day of employment of its previous individual contracting pipefitter competency 140.31license holder to employ another license holder. The Department of Labor and Industry 140.32must be notified no later than five days after the last day of employment of the previous 140.33license holder.140.34    No high pressure pipefitting work may be performed during any period when the 140.35high pressure pipefitting business does not have an individual contracting pipefitter 141.1competency license holder on staff. If a license holder is not employed within 60 days, 141.2the pipefitting business license shall lapse.141.3    The Department of Labor and Industry board shall prescribe by rule procedures for 141.4application for and issuance of business licenses and fees.141.5    Sec. 8. Minnesota Statutes 2006, section 326.48, is amended by adding a subdivision 141.6to read:141.7    Subd. 6.Reciprocity with other states.The commissioner may issue a temporary 141.8license without examination, upon payment of the required fee, nonresident applicants 141.9who are licensed under the laws of a state having standards for licensing which the 141.10commissioner determines are substantially equivalent to the standards of this state if 141.11the other state grants similar privileges to Minnesota residents duly licensed in this 141.12state. Applicants who receive a temporary license under this section may acquire an 141.13aggregate of 24 months of experience before they have to apply and pass the licensing 141.14examination. Applicants must register with the commissioner of labor and industry and 141.15the commissioner shall set a fee for a temporary license. Applicants have five years in 141.16which to comply with this section.141.17    Sec. 9. Minnesota Statutes 2006, section 326.50, is amended to read:141.18326.50 APPLICATION; FEES.141.19    Application for an individual contracting pipefitter competency or an individual 141.20journeyman pipefitter competency license shall be made to the Department of Labor and 141.21Industry, with fees. The applicant shall be licensed only after passing an examination141.22administered by the Department of Labor and Industry in accordance with rules adopted 141.23by the board.141.24    Sec. 10. Minnesota Statutes 2006, section 326.51, is amended to read:141.25326.51 DEPARTMENT MAY REVOKE LICENSES.141.26    The department board may revoke or suspend, for cause, any license obtained 141.27through error or fraud, or if the licensee is shown to be incompetent, or for a violation 141.28of any of its rules and regulations applicable to high pressure pipefitting work. The 141.29licensee shall have notice, in writing, enumerating the charges, and be entitled to a hearing 141.30on at least ten days' notice, with the right to produce testimony. The hearing shall be 141.31held pursuant to chapter 14. The commissioner board shall issue a final order based on 141.32testimony and the record at hearing. One year from the date of revocation application 141.33may be made for a new license.142.1    Sec. 11. Minnesota Statutes 2006, section 326.52, is amended to read:142.2326.52 DEPOSIT OF FEES.142.3    All fees received under sections 
         326.46 to 
         326.52 shall be deposited by the 142.4Department of Labor and Industry to the credit of the general fund in the state treasury. 142.5The salaries and per diem of the inspectors and examiners hereinbefore provided, their 142.6expenses, and all incidental expenses of the department and board in carrying out the 142.7provisions of sections 
         326.46 to 
         326.52 shall be paid from the appropriations made to the 142.8Department of Labor and Industry. The commissioner board by rule shall set the amount 142.9of the fees at a level that approximates, to the greatest extent possible, the salaries, per 142.10diem, and incidental expenses of the department.142.11    Sec. 12. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING 142.12SYSTEMS.142.13    The authority of the commissioner of labor and industry to adopt rules relating to 142.14high pressure piping systems is transferred to the Board of High Pressure Piping Systems. 142.15Licenses and permits currently in effect remain in effect according to their terms unless 142.16affected by board action. Rules adopted by the commissioner of labor and industry remain 142.17in effect until amended or repealed by the board. The commissioner of administration 142.18may not use the authority under Minnesota Statutes, section 16B.37, to modify transfers of 142.19authority in this act.142.20    Sec. 13. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH 142.21PRESSURE PIPING SYSTEMS.142.22    The governor must complete the appointments required by Minnesota Statutes, 142.23section 326.471, no later than July 1, 2007. The commissioner of labor and industry 142.24shall convene the first meeting of the Board of High Pressure Piping Systems no later 142.25than September 1, 2007.142.26    Sec. 14. TRANSFER OF AUTHORITY; PLUMBING BOARD.142.27    The authority of the commissioners of health and labor and industry to adopt rules 142.28relating to plumbers is transferred to the Plumbing Board. Licenses and permits currently 142.29in effect remain in effect according to their terms unless affected by board action. Rules 142.30adopted by the commissioner of health or labor and industry remain in effect until amended 142.31or repealed by the board. The commissioner of administration may not use the authority 142.32under Minnesota Statutes, section 16B.37, to modify the transfers of authority in this act.143.1    Sec. 15. FIRST MEETING; APPOINTMENTS FOR PLUMBING BOARD.143.2    The governor must complete the appointments required by Minnesota Statutes, 143.3section 326.372, no later than July 1, 2007. The commissioner of labor and industry shall 143.4convene the first meeting of the Plumbing Board no later than September 1, 2007.143.5ARTICLE 10143.6IRON RANGE RESOURCES AND REHABILITATION BOARD143.7    Section 1. [270.99] HOCKEY HERITAGE SURCHARGE.143.8    Subdivision 1.Imposition.A surcharge of 25 cents is imposed on the sale of every 143.9ticket to an NCAA Division I men's hockey event in the state.143.10    Subd. 2.Collection; remittance.The surcharge imposed in this section shall be 143.11collected by all sellers of these tickets with nexus in the state of Minnesota. The seller 143.12shall report the surcharge on a return proscribed by the commissioner of revenue and 143.13shall remit the surcharge with the return.143.14    Subd. 3.Administration.Unless specifically provided otherwise in this section, the 143.15audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and 143.16administrative provisions in this chapter and chapter 289A that are applicable to taxes 143.17imposed under chapter 297A apply to the surcharge imposed under this section.143.18    Subd. 4.Deposit of revenues.The commissioner of revenue shall deposit all 143.19revenues, including penalty and interest, derived from the surcharge imposed in this 143.20section in the hockey surcharge account in the special revenue fund. The amount deposited 143.21under this section is appropriated to the Iron Range Resources and Rehabilitation Board 143.22for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame 143.23Museum provided that it continues to operate in the city. Payments under this section for 143.24the Hockey Hall of Fame Museum are in addition to and must not be used to supplant 143.25funding under section 298.28, subdivision 9c.143.26    Sec. 2. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:143.27    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby 143.28created the Iron Range Resources and Rehabilitation Board, consisting of 13ten members, 143.29five of whom are state senators appointed by the Subcommittee on Committees of the 143.30Rules Committee of the senate, and five of whom are representatives, appointed by the 143.31speaker of the house of representatives. The remaining members shall be appointed one 143.32each by the senate majority leader, the speaker of the house of representatives, and the 143.33governor and must be nonlegislators who reside in a taconite assistance area as defined in 143.34section 273.1341. The members shall be appointed in January of every odd-numbered 144.1year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and 144.2shall serve until January of the next odd-numbered year. Vacancies on the board shall be 144.3filled in the same manner as the original members were chosen. At least a majority of 144.4the legislative members of the board shall be elected from state senatorial or legislative 144.5districts in which over 50 percent of the residents reside within a taconite assistance area 144.6as defined in section 
         273.1341. All expenditures and projects made by the commissioner 144.7of Iron Range resources and rehabilitation shall be consistent with the priorities 144.8established in subdivision 8 and shall first be submitted to the Iron Range Resources and 144.9Rehabilitation Board for approval by a majority of the board of expenditures and projects 144.10for rehabilitation purposes as provided by this section, and the method, manner, and time 144.11of payment of all funds proposed to be disbursed shall be first approved or disapproved by 144.12the board. The board shall biennially make its report to the governor and the legislature on 144.13or before November 15 of each even-numbered year. The expenses of the board shall be 144.14paid by the state from the funds raised pursuant to this section. 144.15    Sec. 3. Minnesota Statutes 2006, section 298.227, is amended to read:144.16298.227 TACONITE ECONOMIC DEVELOPMENT FUND.144.17    An amount equal to that distributed pursuant to each taconite producer's taxable 144.18production and qualifying sales under section 
         298.28, subdivision 9a, shall be held by 144.19the Iron Range Resources and Rehabilitation Board in a separate taconite economic 144.20development fund for each taconite and direct reduced ore producer. Money from the 144.21fund for each producer shall be released by the commissioner after review by a joint 144.22committee consisting of an equal number of representatives of the salaried employees and 144.23the nonsalaried production and maintenance employees of that producer. The District 11 144.24director of the United States Steelworkers of America, on advice of each local employee 144.25president, shall select the employee members. In nonorganized operations, the employee 144.26committee shall be elected by the nonsalaried production and maintenance employees. 144.27The review must be completed no later than six months after the producer presents a 144.28proposal for expenditure of the funds to the committee. The funds held pursuant to this 144.29section may be released only for acquisition of plant and stationary mining equipment 144.30and facilities for the producer or for research and development in Minnesota on new 144.31mining, or taconite, iron, or steel production technology, but only if the producer provides 144.32a matching expenditure to be used for the same purpose of at least 50 percent of the 144.33distribution based on 
         14.7 cents per ton beginning with distributions in 2002. Effective for 144.34proposals for expenditures of money from the fund approved beginning the day following 144.35final enactment, the commissioner may release the funds only if the proposed expenditure 145.1is approved by a majority of the members of the Iron Range Resources and Rehabilitation 145.2Board. If a producer uses money which has been released from the fund prior to the day 145.3following final enactment to procure haulage trucks, mobile equipment, or mining shovels, 145.4and the producer removes the piece of equipment from the taconite tax relief area defined 145.5in section 
         273.134 within ten years from the date of receipt of the money from the fund, 145.6a portion of the money granted from the fund must be repaid to the taconite economic 145.7development fund. The portion of the money to be repaid is 100 percent of the grant if the 145.8equipment is removed from the taconite tax relief area within 12 months after receipt of 145.9the money from the fund, declining by ten percent for each of the subsequent nine years 145.10during which the equipment remains within the taconite tax relief area. If a taconite 145.11production facility is sold after operations at the facility had ceased, any money remaining 145.12in the fund for the former producer may be released to the purchaser of the facility on 145.13the terms otherwise applicable to the former producer under this section. If a producer 145.14fails to provide matching funds for a proposed expenditure within six months after the 145.15commissioner approves release of the funds, the funds are available for release to another 145.16producer in proportion to the distribution provided and under the conditions of this section. 145.17Any portion of the fund which is not released by the commissioner within two years of its 145.18deposit in the fund shall be divided between the taconite environmental protection fund 145.19created in section 
         298.223 and the Douglas J. Johnson economic protection trust fund 145.20created in section 
         298.292 for placement in their respective special accounts. Two-thirds 145.21of the unreleased funds shall be distributed to the taconite environmental protection fund 145.22and one-third to the Douglas J. Johnson economic protection trust fund. 145.23EFFECTIVE DATE.This section is effective for proposals for expenditures of 145.24money from the fund the day following final enactment.145.25    Sec. 4. APPROPRIATION; IRON RANGE RESOURCES AND 145.26REHABILITATION BOARD.145.27    $500,000 is appropriated from the Iron Range Resources and Rehabilitation Board 145.28fund for fiscal year 2008 for allocation in this section:145.29    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other 145.30infrastructure to a peat project in Spencer Township in Aitkin County;145.31    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham 145.32Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent 145.33endowment for the preservation;145.34    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the 145.35organization to employ youth for the construction of community centers; and146.1    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field 146.2construction.146.3    These are onetime appropriations.146.4    Sec. 5. IRRRB BUILDING.146.5    The Iron Range Resources and Rehabilitation Board office building in Eveleth, 146.6Minnesota is designated and named the Joe Begich Building and shall be signed as such 146.7at every entrance.146.8ARTICLE 11146.9ELECTRICAL146.10    Section 1. Minnesota Statutes 2006, section 326.01, subdivision 6g, is amended to read:146.11    Subd. 6g. Personal direct supervision.The term "personal "Direct supervision" 146.12means that a person licensed to perform electrical work oversees and directs the electrical 146.13work performed by an unlicensed person such that:146.14    (1) the licensed person actually reviews the electrical work performed by the 146.15unlicensed person an unlicensed individual is being supervised by an individual licensed 146.16to perform the electrical work being supervised;146.17    (2) during the entire working day of the unlicensed individual, the licensed 146.18individual is physically present at the location where the unlicensed individual is 146.19preforming electrical work and immediately available to the unlicensed individual;146.20    (3) the licensed person individual is physically present and immediately available to 146.21the unlicensed person individual at all times for assistance and direction; and146.22    (4) electronic supervision does not meet the requirement of physically present and 146.23immediately available;146.24    (5) the licensed individual shall review the electrical work performed by the 146.25unlicensed individual before the electrical work is operated; and146.26    (3) (6) the licensed person individual is able to and does determine that all electrical 146.27work performed by the unlicensed person individual is performed in compliance with 146.28section 
         326.243. 146.29    The licensed person individual is responsible for the compliance with section 146.30326.243
          of all electrical work performed by the unlicensed person individual. 146.31    Sec. 2. Minnesota Statutes 2006, section 326.241, subdivision 1, is amended to read:146.32    Subdivision 1. Composition.(a) The Board of Electricity shall consist of 11 12146.33members, residents of the state, appointed by the governor of whom and confirmed by 147.1the senate. The commissioner of labor and industry or the commissioner's designee shall 147.2be a nonvoting member. The first appointed board members shall serve an initial term 147.3of four years, except where designated otherwise. The governor shall then reappoint the 147.4current members or appoint replacement members, all or in part, to subsequent three-year 147.5terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 147.6occurring with less than six months time remaining in the term shall be filled for the 147.7existing term and the following three-year term. Of the 11 appointed members, the 147.8composition shall be as follows:147.9    (1) two shall be representatives of the electrical suppliers in the rural areas of the 147.10state,147.11    (2) two shall be master electricians, who shall be contractors,147.12    (3) two journeyman electricians,147.13    (4) one registered consulting electrical engineer,147.14    (5) two power limited technicians, who shall be technology system contractors 147.15primarily engaged in the business of installing technology circuits or systems, and147.16    (6) two public members as defined by section 
         214.02.147.17    (b) Except as provided herein, membership terms, compensation of members, 147.18removal of members, the filling of membership vacancies, and fiscal year and reporting 147.19requirements shall be as provided in sections 
         214.07 to 
         214.09. The provision of staff, 147.20administrative services and office space; the review and processing of complaints; the 147.21setting of board fees; and other provisions relating to board operations shall be as provided 147.22in chapter 214. 147.23    Sec. 3. Minnesota Statutes 2006, section 326.241, subdivision 2, is amended to read:147.24    Subd. 2. Powers.(a) The board, or the complaint committee on behalf of the board 147.25where authorized by law, shall have power to:147.26    (1) Elect its own officers.147.27    (2) Engage and fix the compensation of inspectors, and hire employees. The salary 147.28of the executive secretary shall be established pursuant to chapter 43A. All agents and 147.29employees other than contract inspectors shall be in the classified service and shall be 147.30compensated pursuant to chapter 43A. All inspectors shall hold licenses as master or 147.31journeyman electricians under section 326.242, subdivision 1(1) or 2(1), and shall give 147.32bond in an amount fixed by the board, conditioned upon the faithful performance of 147.33their duties.147.34    (3) (2) Pay such other expenses as it may deem necessary in the performance of its 147.35duties, including rent, supplies, and such like.148.1    (3) Select from its members individuals to serve on any other state advisory councils, 148.2boards, or committees.148.3    (4) Enforce the provisions of sections 
         326.241 to 
         326.248, and provide, upon 148.4request, such additional voluntary inspections and reviews as it may deem appropriate. 148.5    (5) Issue, renew, refuse to renew, suspend, temporarily suspend, and revoke licenses, 148.6censure licensees, assess civil penalties, issue cease and desist orders, and seek injunctive 148.7relief and civil penalties in court as authorized by section 326.242 and other provisions of 148.8Minnesota law. Establish the committees required herein and any others deemed necessary 148.9by the board or requested by the commissioner.148.10    (6) Adopt reasonable rules to carry out its duties under sections 
         326.241 to 
         326.248148.11and to provide for the amount and collection of fees for inspection and other services. All 148.12rules shall be adopted in accordance with chapter 14. 148.13    (7) Advise the commissioner on issues related to sections 326.241 to 326.248 or as 148.14requested by the commissioner.148.15    (b) Except for the powers granted to the Electricity Board the commissioner of labor 148.16and industry shall administer the provisions of sections 326.241 to 326.248 and for such 148.17purposes may employ electrical inspectors and other assistants.148.18    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:148.19    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual 148.20means an individual who has not been licensed by the Board of Electricity as a Class A 148.21master electrician or as a Class A journeyman electrician. An unlicensed individual shall 148.22not perform electrical work required to be performed by a licensed individual unless the 148.23individual has first registered with the Board of Electricity as an unlicensed individual. 148.24Thereafter, an unlicensed individual shall not perform electrical work required to be 148.25performed by a licensed individual unless the work is performed under the personal direct148.26supervision of a person an individual actually licensed to perform such work and. The 148.27licensed electrician individual and unlicensed persons are individual must be employed 148.28by the same employer. Licensed persons individuals shall not permit unlicensed persons148.29individuals to perform electrical work except under the personal direct supervision of 148.30a person an individual actually licensed to perform such work. Unlicensed persons148.31individuals shall not supervise the performance of electrical work or make assignments 148.32of electrical work to unlicensed persons individuals. Except for technology circuit or 148.33system work, licensed persons individuals shall supervise no more than two unlicensed 148.34persons individuals. For technology circuit or system work, licensed persons individuals148.35shall supervise no more than three unlicensed persons individuals.149.1    (b) Notwithstanding any other provision of this section, no person individual other 149.2than a master electrician or power limited technician shall plan or lay out electrical wiring, 149.3apparatus, or equipment for light, heat, power, or other purposes, except circuits or 149.4systems exempted from personal licensing by subdivision 12, paragraph (b).149.5    (c) Contractors employing unlicensed persons performing individuals to perform149.6electrical work shall maintain records establishing compliance with this subdivision, 149.7which that shall designate identify all unlicensed persons individuals performing electrical 149.8work, except for persons working on circuits or systems exempted from personal licensing 149.9by subdivision 12, paragraph (b), and shall permit the board to examine and copy all such 149.10records as provided for in section 
         326.244, subdivision 6. 149.11    (d) When a licensed individual supervises the electrical work of an unlicensed 149.12individual, the licensed individual is responsible for ensuring that the electrical work 149.13complies with sections 326.241 to 326.248 and rules adopted.149.14    Sec. 5. Minnesota Statutes 2006, section 326.242, is amended by adding a subdivision 149.15to read:149.16    Subd. 5a.Registration of unlicensed individuals.Unlicensed individuals 149.17performing electrical work for a contractor or employer shall register with the department 149.18in the manner prescribed by the commissioner. Experience credit for electrical work 149.19performed after January 1, 2008, by an applicant for a license identified in this section 149.20shall not be granted where the applicant has not registered with or is not licensed by 149.21the department.149.22    Sec. 6. Minnesota Statutes 2006, section 326.242, subdivision 11, is amended to read:149.23    Subd. 11. Reciprocity.To the extent that any other state which provides for the 149.24licensing of electricians provides for similar action the board may grant licenses, without 149.25examination, of the same grade and class to an electrician who has been licensed by such 149.26other state for at least one year, upon payment by the applicant of the required fee and 149.27upon the board being furnished with proof that the required fee and upon the board being 149.28furnished with proof that the qualifications of the applicant are equal to the qualifications 149.29of holders of similar licenses in Minnesota. The commissioner may enter into reciprocity 149.30agreements for personal licenses with another state if approved by the board. Once 149.31approved by the board, the commissioner may issue a personal license without requiring 149.32the applicant to pass an examination provided the applicant:149.33    (a) submits an application under section 326.242;149.34    (b) pays the fee required under section 326.242; and150.1    (c) holds a valid comparable license in the state participating in the agreement.150.2    Agreements are subject to the following:150.3    (1) The parties to the agreement must administer a statewide licensing program that 150.4includes examination and qualifying experience or training comparable to Minnesota's.150.5    (2) The experience and training requirements under which an individual applicant 150.6qualified for examination in the qualifying state must be deemed equal to or greater than 150.7required for an applicant making application in Minnesota at the time the applicant 150.8acquired the license in the qualifying state.150.9    (3) The applicant must have acquired the license in the qualifying state through an 150.10examination deemed equivalent to the same class of license examination in Minnesota. 150.11A lesser class of license may be granted where the applicant has acquired a greater 150.12class of license in the qualifying state and the applicant otherwise meets the conditions 150.13of this subdivision.150.14    (4) At the time of application, the applicant must hold a valid license in the 150.15qualifying state and have held the license continuously for at least one year before making 150.16application in Minnesota.150.17    (5) An applicant is not eligible for a license under this subdivision if the applicant 150.18has failed the same or greater class of license examination in Minnesota, or if the 150.19applicant's license of the same or greater class has been revoked or suspended.150.20    (6) An applicant who has failed to renew a personal license for two years or more 150.21after its expiration is not eligible for a license under this subdivision.150.22    Sec. 7. REPEALER.150.23Minnesota Statutes 2006, sections 326.01, subdivision 4; and 326.242, subdivision 150.244, are repealed.150.25EFFECTIVE DATE.This section is effective the day following final enactment.150.26ARTICLE 12150.27APPRENTICESHIP BOARD150.28    Section 1. Minnesota Statutes 2006, section 178.01, is amended to read:150.29178.01 PURPOSES.150.30    The purposes of this chapter are: to open to young people regardless of race, sex, 150.31creed, color or national origin, the opportunity to obtain training that will equip them for 150.32profitable employment and citizenship; to establish as a means to this end, a program 150.33of voluntary apprenticeship under approved apprentice agreements providing facilities 151.1for their training and guidance in the arts, skills, and crafts of industry and trade, with 151.2concurrent, supplementary instruction in related subjects; to promote employment 151.3opportunities under conditions providing adequate training and reasonable earnings; 151.4to relate the supply of skilled workers to employment demands; to establish standards 151.5for apprentice training; to establish an Apprenticeship Advisory Council Board and 151.6apprenticeship committees to assist in effectuating the purposes of this chapter; to provide 151.7for a Division of Labor Standards and Apprenticeship within the Department of Labor 151.8and Industry; to provide for reports to the legislature regarding the status of apprentice 151.9training in the state; to establish a procedure for the determination of apprentice agreement 151.10controversies; and to accomplish related ends.151.11    Sec. 2. Minnesota Statutes 2006, section 178.02, is amended to read:151.12178.02 APPRENTICESHIP ADVISORY COUNCIL BOARD.151.13    Subdivision 1. Members. The commissioner of labor and industry, hereinafter 151.14called the commissioner, shall appoint an Apprenticeship Advisory Council Board, 151.15hereinafter referred to as the council board, composed of three representatives each from 151.16employer and employee organizations, and two representatives of the general public. The 151.17director of education responsible for career and technical education or designee shall be an 151.18ex officio member of the council board and shall serve in an advisory capacity only.151.19    Subd. 2. Terms. The council board shall expire and the terms, compensation, and 151.20removal of appointed members shall be as provided in section 
         15.059, except that the 151.21council shall not expire before June 30, 2003. 151.22    Subd. 4. Duties. The council board shall meet at the call of the commissioner. It 151.23shall propose occupational classifications for apprenticeship programs; propose minimum 151.24standards for apprenticeship programs and agreements; and advise on the establishment 151.25of such policies, procedures, and rules as the commissionerboard deems necessary in 151.26implementing the intent of this chapter.151.27    Sec. 3. Minnesota Statutes 2006, section 178.03, subdivision 3, is amended to read:151.28    Subd. 3. Duties and functions. The director, under the supervision of the 151.29commissioner, and with the advice and oversight of the Apprenticeship Advisory 151.30Council Board, is authorized: to administer the provisions of this chapter; to promote 151.31apprenticeship and other forms of on the job training; to establish, in cooperation and 151.32consultation with the Apprenticeship Advisory Council Board and with the apprenticeship 151.33committees, conditions and training standards for the approval of apprenticeship programs 151.34and agreements, which conditions and standards shall in no case be lower than those 152.1prescribed by this chapter; to promote equal employment opportunity in apprenticeship 152.2and other on the job training and to establish a Minnesota plan for equal employment 152.3opportunity in apprenticeship which shall be consistent with standards established 152.4under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of 152.5registration to sponsors of approved apprenticeship programs; to act as secretary of the 152.6Apprenticeship Advisory Council Board; to approve, if of the opinion that approval is 152.7for the best interest of the apprentice, any apprenticeship agreement which meets the 152.8standards established hereunder; to terminate any apprenticeship agreement in accordance 152.9with the provisions of such agreement; to keep a record of apprenticeship agreements and 152.10their disposition; to issue certificates of completion of apprenticeship; and to perform 152.11such other duties as the commissioner deems necessary to carry out the intent of this 152.12chapter; provided, that the administration and supervision of supplementary instruction in 152.13related subjects for apprentices; coordination of instruction on a concurrent basis with 152.14job experiences, and the selection and training of teachers and coordinators for such 152.15instruction shall be the function of state and local boards responsible for vocational 152.16education. The director shall have the authority to make wage determinations applicable 152.17to the graduated schedule of wages and journeyman wage rate for apprenticeship 152.18agreements, giving consideration to the existing wage rates prevailing throughout the 152.19state, except that no wage determination by the director shall alter an existing wage 152.20provision for apprentices or journeymen that is contained in a bargaining agreement in 152.21effect between an employer and an organization of employees, nor shall the director 152.22make any determination for the beginning rate for an apprentice that is below the wage 152.23minimum established by federal or state law.152.24    Sec. 4. Minnesota Statutes 2006, section 178.041, subdivision 1, is amended to read:152.25    Subdivision 1. Rules. The commissioner may, upon receipt of the council's board's152.26proposals, accept, adopt, and issue them by rule with any modifications or amendments 152.27the commissioner finds appropriate. The commissioner may refer them back to the 152.28council board with recommendations for further study, consideration and revision. If 152.29the commissioner refuses to accept, adopt, and issue by rule or other appropriate action 152.30a board proposal, the commissioner must provide a written explanation of the reason 152.31for the refusal to the board within 30 days after the board submitted the proposal to the 152.32commissioner. Additional rules may be issued as the commissioner may deem necessary.