1.1A bill for an act1.2relating to state government; appropriating money for jobs, economic 1.3development, and housing; establishing and modifying certain programs; 1.4providing for regulation of certain activities and practices; providing for accounts, 1.5assessments, and fees;amending Minnesota Statutes 2006, sections 116J.401, 1.6by adding a subdivision; 116J.551, subdivision 1; 116J.554, subdivision 2; 1.7116J.555, subdivision 1; 116J.575, subdivisions 1, 1a; 116J.966, subdivision 1; 1.8116L.01, by adding a subdivision; 116L.04, subdivision 1a; 116L.17, subdivision 1.91; 116L.20, subdivision 1; 116L.666, subdivision 1; 116M.18, subdivision 1.106a; 177.27, subdivisions 1, 4, 5, 8, 9, 10, by adding a subdivision; 177.28, 1.11subdivision 1; 177.30; 177.43, subdivisions 3, 4, 6, by adding a subdivision; 1.12178.01; 178.02; 178.03, subdivision 3; 178.041, subdivision 1; 181.78, by adding 1.13a subdivision; 181.932, subdivision 1; 181.935; 182.65, subdivision 2; 190.096; 1.14268.085, subdivision 3; 268.196, by adding a subdivision; 268A.01, subdivision 1.1513, by adding a subdivision; 268A.085, subdivision 1; 268A.15, by adding a 1.16subdivision; 298.22, subdivision 2; 298.227; 325E.37, subdivision 6; 326.01, 1.17subdivision 6g; 326.241, subdivisions 1, 2; 326.242, subdivisions 3d, 5, 11, by 1.18adding a subdivision; 326.37, subdivision 1, by adding a subdivision; 326.38; 1.19326.40, subdivision 1; 326.401, subdivision 2; 326.405; 326.42, subdivision 1; 1.20326.46; 326.461, by adding a subdivision; 326.47, subdivisions 2, 6; 326.48, 1.21subdivisions 1, 2, by adding a subdivision; 326.50; 326.51; 326.52; 341.28, 1.22subdivision 2, by adding a subdivision; 341.32, subdivision 2; 341.321; 462.39, 1.23by adding a subdivision; 462A.21, subdivision 8b; 462A.33, subdivision 3; 1.24469.021; 541.051; proposing coding for new law in Minnesota Statutes, chapters 1.25116J; 116O; 154; 177; 179; 181; 181A; 182; 270; 326; repealing Minnesota 1.26Statutes 2006, sections 16C.18, subdivision 2; 176.042; 268.035, subdivision 9; 1.27326.01, subdivision 4; 326.242, subdivision 4; 326.45.1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.29ARTICLE 11.30JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS SUMMARY

1.31Section 1. SUMMARY.

1.32    The amounts shown in this section summarize direct appropriations, by fund, made 1.33in this act.

2.120082009Total2.2General$213,756,000$156,634,000$370,390,0002.3Workforce Development15,510,00015,526,00031,036,0002.4Remediation700,000700,0001,400,0002.52.6State Government Special Revenue1,877,0001,925,0003,802,0002.7Workers' Compensation 23,379,00023,763,00047,142,0002.8TANF3,075,0003,075,0006,150,0002.9Total$258,297,000$201,623,000$459,920,000

2.10ARTICLE 22.11JOBS AND ECONOMIC DEVELOPMENT2.12    Section 1. SUMMARY OF APPROPRIATIONS.

2.1320082009Total2.14General$94,685,000$60,084,000$154,769,0002.15Workforce Development15,510,00015,526,00031,036,0002.16Remediation700,000700,0001,400,0002.172.18State Government Special Revenue1,877,0001,925,0003,802,0002.19Workers' Compensation 23,379,00023,763,00047,142,0002.20Total$136,151,000$101,998,000$238,149,000

2.21Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

2.22    The sums shown in the columns marked "Appropriations" are appropriated to the 2.23agencies and for the purposes specified in this article. The appropriations are from the 2.24general fund, or another named fund, and are available for the fiscal years indicated 2.25for each purpose. The figures "2008" and "2009" used in this article mean that the 2.26appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.27June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.28year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 2.29year ending June 30, 2007, are effective the day following final enactment.

2.30APPROPRIATIONS2.31Available for the Year2.32Ending June 302.3320082009

2.342.35Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

2.36Subdivision 1.Total Appropriation$ 101,587,000$66,589,000

3.1Appropriations by Fund3.2200820093.3General 86,142,00051,144,0003.4Remediation700,000700,0003.53.6Workforce Development14,745,00014,745,000

3.7The amounts that may be spent for each 3.8purpose are specified in the following 3.9subdivisions.

3.103.11Subd. 2.Business and Community Development 49,058,000 14,372,000

3.12Appropriations by Fund3.13General 48,358,00013,672,0003.14Remediation700,000700,000

3.15(a)(1) $1,100,000 is for a grant under 3.16Minnesota Statutes, section 116J.421, 3.17to the Rural Policy and Development 3.18Center at St. Peter, Minnesota. The grant 3.19shall be used for research and policy 3.20analysis on emerging economic and social 3.21issues in rural Minnesota, to serve as a 3.22policy resource center for rural Minnesota 3.23communities, to encourage collaboration 3.24across higher education institutions, to 3.25provide interdisciplinary team approaches 3.26to research and problem-solving in rural 3.27communities, and to administer overall 3.28operations of the center. 3.29(2) The grant shall be provided upon the 3.30condition that each state-appropriated 3.31dollar be matched with a nonstate dollar. 3.32Acceptable matching funds are nonstate 3.33contributions that the center has received and 3.34have not been used to match previous state 3.35grants. Any funds not spent the first year are 3.36available the second year. 4.1(b) $200,000 each year is for a grant to 4.2WomenVenture for women's business 4.3development programs.4.4(c) $500,000 the first year is for a grant to 4.5University Enterprise Laboratories (UEL) 4.6for its direct and indirect expenses to support 4.7efforts to encourage the growth of early-stage 4.8and emerging bioscience companies. UEL 4.9must provide a report by June 30 each year 4.10to the commissioner on the expenditures 4.11until the appropriation is expended. This is a 4.12onetime appropriation and is available until 4.13expended.4.14(d) $2,180,000 the first year is for grants 4.15under Minnesota Statutes, section 116J.571, 4.16for the redevelopment grant program. This is 4.17a onetime appropriation.4.18(e) $100,000 each year is to the Public 4.19Facilities Authority for the small community 4.20wastewater treatment program under 4.21Minnesota Statutes, chapter 446A.4.22(f) $510,000 the first year is for the urban 4.23initiative program under Minnesota Statutes, 4.24chapter 116M, of which, $255,000 is for 4.25a grant to the Metropolitan Economic 4.26Development Association for continuing 4.27minority business development programs 4.28in the metropolitan area. This is a onetime 4.29appropriation.4.30(g) $85,000 each year is for a grant to the 4.31Minnesota Inventors Congress, of which 4.32$10,000 must be used for youth inventors.4.33(h) $151,000 the first year is for a grant to the 4.34city of Faribault to design, construct, furnish, 4.35and equip renovations to accommodate 5.1handicapped accessibility at the Paradise 5.2Center for the Arts.5.3(i) $3,000,000 the first year is for loans 5.4authorized under Minnesota Statutes, section 5.5116J.417. This appropriation is available 5.6until expended.5.7(j) $1,000,000 each year is to Minnesota 5.8Technology, Inc. for the small business 5.9growth acceleration program established 5.10under Minnesota Statutes, section 116O.115. 5.11This is a onetime appropriation.5.12(k) $350,000 the first year is for a grant to 5.13the city of Northome for the construction 5.14of a new municipal building to replace the 5.15structures damaged by fire on July 22, 2006. 5.16This appropriation is available when the 5.17commissioner determines that a sufficient 5.18match is available from nonstate sources to 5.19complete the project.5.20(l) $325,000 each year is for a technology 5.21and commercialization unit established 5.22under article 7, section 32. This is a onetime 5.23appropriation.5.24(m) $500,000 in the first year is for a 5.25grant to the city of Worthington for an 5.26agricultural-based bioscience training and 5.27testing center. Funds appropriated under this 5.28section must be used to provide a training 5.29and testing facility for incubator firms 5.30developing new agricultural processes and 5.31products. This is a onetime appropriation 5.32and is available until expended.5.33(n) $2,200,000 in the first year is for a grant 5.34to BioBusiness Alliance of Minnesota for 5.35bioscience business development programs 6.1to promote and position the state as a global 6.2leader in bioscience business activities. 6.3These funds may be used for:6.4(1) completion and periodic updating of 6.5a statewide bioscience business industry 6.6assessment of business technology 6.7enterprises and Minnesota's competitive 6.8position employing annual updates to federal 6.9industry classification data;6.10(2) long-term strategic planning that includes 6.11projections of market changes resulting 6.12from developments in biotechnology and the 6.13development of 20-year goals, strategies, and 6.14identified objectives for renewable energy, 6.15medical devices, biopharma, and biologics 6.16business development in Minnesota;6.17(3) the design and construction of a 6.18Minnesota focused bioscience business 6.19model to test competing strategies and 6.20scenarios, evaluate options, and forecast 6.21outcomes; and6.22(4) creation of a bioscience business 6.23resources network that includes development 6.24of a statewide bioscience business economic 6.25development framework to encourage 6.26bioscience business development and 6.27encourage spin-off activities, attract 6.28bioscience business location or expansion in 6.29Minnesota, and establish a local capability to 6.30support strategic system level planning for 6.31industry, government, and academia.6.32This appropriation is available until June 30, 6.332009.6.34(o) $325,000 is for a grant to the Walker 6.35Area Community Center, Inc., to construct, 7.1furnish, and equip the Walker Area 7.2Community Center. This appropriation is 7.3not available until the commissioner has 7.4determined that an amount sufficient to 7.5complete the project has been committed 7.6from nonstate sources.7.7(p) $120,000 the first year is for a grant 7.8to the Pine Island Economic Development 7.9Authority for predesign to upgrade and 7.10extend utilities to serve Elk Run Bioscience 7.11Research Park and The Falls - Healthy 7.12Living By Nature, an integrated medicine 7.13facility. This is a onetime appropriation and 7.14is available until expended.7.15(q) $300,000 the first year is for a grant 7.16to Thomson Township for infrastructure 7.17improvements for the industrial park. This is 7.18a onetime appropriation.7.19(r) $75,000 the first year for a grant to 7.20Le Sueur County for the cost of cleaning 7.21debris from lakes in Le Sueur County, 7.22caused by the August 24, 2006, tornado in 7.23southern Le Sueur County. This is a onetime 7.24appropriation.7.25(s) $3,000,000 the second year is for 7.26bioscience business development and 7.27commercialization grants. The commissioner 7.28shall designate an evaluation team to accept 7.29grant applications, review and evaluate 7.30grant proposals, and select up to five grant 7.31proposals to receive funding each year. 7.32The evaluation team shall be comprised 7.33of not more than 12 members including: 7.34the commissioner or the commissioner's 7.35designee; representatives of bioscience 8.1businesses; public and private institutions 8.2of higher education; private investment 8.3companies; a nonprofit entity that qualifies as 8.4a 501(c)6 under the Internal Revenue Code 8.5and is a trade association representing the 8.6life sciences industry; and a bio business 8.7alliance that qualifies as a 501(c)3 under the 8.8Internal Revenue Code. The criteria used 8.9by the evaluation team in evaluating grant 8.10proposals must include, but is not limited 8.11to: the potential to create and sustain jobs 8.12within the state of Minnesota; the potential 8.13for long-term business activity, growth, 8.14and expansion in Minnesota; the level of 8.15technological maturity; the potential to attract 8.16private investment; and the availability and 8.17readiness of markets. The commissioner 8.18must report to the standing committees of 8.19the house of representatives and the senate 8.20having jurisdiction over bioscience and 8.21technology issues by February 1 each year 8.22on the number, type, and amounts of grants 8.23awarded and the activities of the grant 8.24recipients. This is a onetime appropriation 8.25and is available until expended.8.26(t) $1,500,000 the first year is for the urban 8.27challenge grant program under Minnesota 8.28Statutes, section 116M.18, of which 8.29$1,000,000 is for a grant to the Neighborhood 8.30Development Center for assistance necessary 8.31to retain minority business enterprises 8.32at the Global Market. This is a onetime 8.33appropriation.8.34(u) $375,000 each year is to develop and 8.35operate a bioscience business marketing 8.36program to market Minneota bioscience 9.1businesses and business opportunities 9.2to other states and other countries. The 9.3bioscience business marketing program must 9.4emphasize bioscience business location and 9.5expansion opportunities in communities 9.6outside of the seven-county metropolitan 9.7area as defined in Minnesota Statutes, 9.8section 473.121, subdivision 2, that have 9.9established collaborative plans among two 9.10or more municipal units for bioscience 9.11business activities, and that are within 15 9.12miles of a four-year, baccalaureate degree 9.13granting institution or a two-year technical 9.14or community college that offers bioscience 9.15curricula. The commissioner must report 9.16to the committees of the senate and house 9.17of representatives having jurisdiction 9.18over bioscience and technology issues by 9.19February 1 of each year on the expenditures 9.20of these funds and the promotional activities 9.21undertaken to market the Minnesota 9.22bioscience industry to persons outside of the 9.23state. This is a onetime appropriation and is 9.24available until expended.9.25(v) $225,000 each year is for the purposes 9.26of the nanotechnology development fund 9.27program (NDF) established in section 12, for 9.28grants to promote increased use of advanced 9.29instrumentation for nanomaterials analysis, 9.30to be awarded on a one-to-one matching basis 9.31to qualifying Minnesota small businesses. 9.32This is a onetime appropriation.9.33(w) $50,000 the first year is for a contract 9.34with a public higher education institution 9.35in Minnesota jointly entered into with the 9.36Center for Rural Development to study the 10.1needs of the renewable energy economy for 10.2trained employees and the training required 10.3for those employees. The study must include 10.4extensive consultation and involvement of 10.5representatives of the renewable energy 10.6industry, environmental interests, labor, the 10.7University of Minnesota, and the Minnesota 10.8State Colleges and Universities. The 10.9commissioner shall report the results of the 10.10study to the chairs of the finance divisions 10.11of the legislature with jurisdiction over 10.12economic development, energy, and higher 10.13education by November 1, 2007. This is a 10.14onetime appropriation.10.15(x) $25,000,000 is for the Minnesota 10.16minerals 21st century fund created in 10.17Minnesota Statutes, section 116J.423, 10.18to restore the money unallotted by the 10.19commissioner of finance in 2003 pursuant 10.20to Minnesota Statutes, section 16A.152. 10.21This appropriation may be used as provided 10.22in Minnesota Statutes, section 116J.423, 10.23subdivision 2. This appropriation is available 10.24until expended.10.25(y) $900,000 each year is for a grant to the 10.26city of St. Paul to be used to pay debt service 10.27on bond obligations issued by the city of St. 10.28Paul in 1996 for the convention center.10.29(z) $189,000 each year is appropriated from 10.30the general fund to the commissioner of 10.31employment and economic development for 10.32grants of $63,000 to eligible organizations 10.33each year and for the purposes of this 10.34paragraph. Each state grant dollar must be 10.35matched with $1 of nonstate funds. Any 11.1balance in the first year does not cancel but is 11.2available in the second year.11.3The commissioner of employment and 11.4economic development must make grants to 11.5organizations to assist in the development 11.6of entrepreneurs and small businesses. 11.7Three grants must be awarded to continue 11.8or to develop a program. One grant must 11.9be awarded to the Riverbend Center for 11.10Entrepreneurial Facilitation in Blue Earth 11.11County, and two to other organizations 11.12serving Faribault and Martin Counties. Grant 11.13recipients must report to the commissioner 11.14by February 1 of each year that the 11.15organization receives a grant with the 11.16number of customers served; the number of 11.17businesses started, stabilized, or expanded; 11.18the number of jobs created and retained; and 11.19business success rates. The commissioner 11.20must report to the house of representatives 11.21and senate committees with jurisdiction 11.22over economic development finance on the 11.23effectiveness of these programs for assisting 11.24in the development of entrepreneurs and 11.25small businesses.11.26(aa) $10,000 for the biennium is to the 11.27commissioner of employment and economic 11.28development for the Minnesota investment 11.29fund. This grant is not subject to grant 11.30limitations under section 116J.8731, 11.31subdivision 5.

11.32Subd. 3.Workforce Development49,531,00049,197,000

11.33Appropriations by Fund11.34General34,786,00034,452,00011.3511.36Workforce Development14,745,00014,745,000

12.1(a) $6,785,000 each year is for the Minnesota 12.2job skills partnership program under 12.3Minnesota Statutes, sections 116L.01 to 12.4116L.17. If the appropriation for either 12.5year is insufficient, the appropriation for the 12.6other year is available. This appropriation is 12.7available until spent.12.8(b) $305,000 each year is for a grant under 12.9Minnesota Statutes, section 116J.8747, to 12.10Twin Cities RISE! to provide training to 12.11hard-to-train individuals. 12.12(c) $1,375,000 each year is from 12.13the workforce development fund for 12.14Opportunities Industrialization Center 12.15programs. 12.16(d) $5,864,000 each year is from the general 12.17fund and $6,920,000 each year is from the 12.18workforce development fund for extended 12.19employment services for persons with 12.20severe disabilities or related conditions under 12.21Minnesota Statutes, section 268A.15. Of this, 12.22$125,000 each year and in the base for fiscal 12.23years 2010 and 2011 is to supplement funds 12.24paid for wage incentive for the community 12.25support fund established in Minnesota Rules, 12.26part 3300.2045.12.27(e) $1,900,000 each year is for grants for 12.28programs that provide employment support 12.29services to persons with mental illness under 12.30Minnesota Statutes, sections 268A.13 and 12.31268A.14. Up to $77,000 each year may be 12.32used for administrative and salary expenses.12.33(f) $2,190,000 each year is for grants under 12.34Minnesota Statutes, section 268A.11, for the 12.35eight centers for independent living. Money 13.1not expended the first year is available the 13.2second year.13.3(g) $5,940,000 each year is for State Services 13.4for the Blind activities.13.5(h) $150,000 each year is from the general 13.6fund and $175,000 each year is from the 13.7workforce development fund for grants under 13.8Minnesota Statutes, section 268A.03, to Rise, 13.9Inc. for the Minnesota Employment Center 13.10for People Who are Deaf or Hard-of-Hearing. 13.11Money not expended the first year is 13.12available the second year.13.13(i) $9,021,000 each year from the general 13.14fund is for the vocational rehabilitation 13.15program and $325,000 each year from 13.16the workforce development fund is for 13.17interpreters for a regional transition program 13.18specializing in culturally appropriate 13.19transition services leading to employment 13.20for deaf, hard-of-hearing, and deaf-blind 13.21students.13.22(j) $150,000 each year is for a grant to 13.23Advocating Change Together for training, 13.24technical assistance, and resource materials 13.25to persons with developmental and mental 13.26illness disabilities.13.27(k) $300,000 each year for a grant to 13.28Lifetrack Resources for its immigrant/refugee 13.29collaborative programs, including those 13.30related to job-seeking skills and workplace 13.31orientation, intensive job development, 13.32functional work English, and on-site job 13.33coaching. $50,000 of this amount is for a 13.34pilot Lifetrack project in Rochester.14.1(l) $1,075,000 each year is for the youthbuild 14.2program under Minnesota Statutes, sections 14.3116L.361 to 116L.366.14.4(m) $1,350,000 each year is from the 14.5workforce development fund for grants 14.6to fund summer youth employment in 14.7Minneapolis. The grants shall be used to 14.8fund up to 500 jobs for youth each summer. 14.9Of this appropriation, $350,000 each year is 14.10for a grant to the learn-to-earn summer youth 14.11employment program. The commissioner 14.12shall establish criteria for awarding the 14.13grants. This appropriation is available in 14.14either year of the biennium and is available 14.15until spent.14.16(n) $50,000 each year is for a grant 14.17to Northern Connections in Perham to 14.18implement and operate a pilot workforce 14.19program that provides one-stop supportive 14.20services to assist individuals as they transition 14.21into the workforce. This appropriation is 14.22available to the extent it is matched by $1 of 14.23nonstate money for each $1 of state money.14.24(o) $100,000 each year is for a grant to 14.25Ramsey County Workforce Investment Board 14.26for the development of the building lives 14.27program. This is a onetime appropriation.14.28(p) $300,000 each year is for a grant to the 14.29Hennepin-Carver Workforce Investment 14.30Board (WIB) to coordinate with the Partners 14.31for Progress Regional Skills Consortium 14.32to provide employment and training as 14.33demonstrated by the Twin Cities regional 14.34health care training partnership project.15.1(q) $160,000 the first year is for a grant 15.2to Workforce Development, Inc., for a 15.3pilot project to provide demand-driven 15.4employment and training services to 15.5welfare recipients and other economically 15.6disadvantaged populations in Mower, 15.7Freeborn, Dodge, and Steele Counties. This 15.8is a onetime appropriation.15.9(r) $200,000 each year is for a grant to 15.10HIRED to operate its industry sector training 15.11initiatives, which provide employee training 15.12developed in collaboration with employers in 15.13specific, high-demand industries. This is a 15.14onetime appropriation.15.15(s) $200,000 the first year is for a grant 15.16to a nonprofit organization. The nonprofit 15.17organization must work on behalf of all 15.18licensed vendors to coordinate their efforts 15.19to respond to solicitations or other requests 15.20from private and governmental units as 15.21defined in Minnesota Statutes, section 15.22471.59, subdivision 1, in order to increase 15.23employment opportunities for persons with 15.24disabilities.15.25(t) $3,500,000 each year from the workforce 15.26development fund is for the Minnesota youth 15.27program under Minnesota Statutes, section 15.28116L.56 and 116L.561.15.29(u) $500,000 each year from the workforce 15.30development fund is for a grant to the 15.31Minnesota Alliance of Boys and Girls 15.32Clubs to administer a statewide project 15.33of youth job skills development. This 15.34project, which may have career guidance 15.35components, including health and life skills, 16.1is to encourage, train, and assist youth in 16.2job-seeking skills, workplace orientation, 16.3and job site knowledge through coaching. 16.4This grant requires a 25 percent match from 16.5nonstate resources.16.6(v) $350,000 in each year from the workforce 16.7development fund is for a grant to Ramsey 16.8County for a summer youth employment 16.9program to place at-risk youth, ages 14 to 21, 16.10in subsidized summer employment.16.11(w) $10,000 the first year is for a study on 16.12ways to promote employment opportunities 16.13for minorities, with a particular focus on 16.14opportunities for American blacks, in the 16.15state of Minnesota. The study should focus 16.16on how to significantly expand the job 16.17training available to minorities and promote 16.18substantial increases in the wages paid to 16.19minorities, at least to a rate well above living 16.20wage, and within several years, to equality. 16.21The commissioner must report on the study 16.22to the governor and the chair of the finance 16.23committee in each house of the legislature 16.24that has jurisdiction over employment by 16.25January 15, 2008, with recommendations for 16.26implementing the findings.16.27The commissioner must provide funding 16.28for the Minnesota Conservation Corps to 16.29provide learning stipends for deaf students 16.30and wages for interpreters participating in 16.31the MCC summer youth program.

16.32Subd. 4.State-Funded Administration2,998,0003,020,000

16.33The first $1,450,000 deposited in each 16.34year of the biennium and in each year of 16.35subsequent bienniums into the contingent 17.1account created under Minnesota Statutes, 17.2section 268.196, subdivision 3, shall be 17.3transferred by June 30 of each fiscal year 17.4to the workforce development fund created 17.5under Minnesota Statutes, section 116L.20. 17.6Deposits in excess of $1,450,000 shall be 17.7transferred by June 30 of each fiscal year to 17.8the general fund.

17.917.10Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY

17.11Subdivision 1.Total Appropriation$ 29,002,000$29,794,000

17.12Appropriations by Fund17.132008200917.14General 4,644,0005,035,00017.1517.16Workers' Compensation21,716,00022,053,00017.1717.18Workforce Development765,000781,00017.1917.20State Government Special Revenue1,877,0001,925,000

17.21The amounts that may be spent for each 17.22purpose are specified in the following 17.23subdivisions.

17.24Subd. 2.Workers' Compensation10,381,00010,659,000

17.25This appropriation is from the workers' 17.26compensation fund.17.27$200,000 each year is for grants to the 17.28Vinland Center for rehabilitation services.

17.29Subd. 3.Safety Codes and Services9,949,00010,134,000

17.30$5,292,000 the first year and $5,388,000 17.31the second year are from the workers' 17.32compensation fund. $1,877,000 the first year 17.33and $1,925,000 the second year are from the 17.34state government special revenue fund.18.1$1,000,000 each year is from the workers' 18.2compensation fund for patient safe handling 18.3grants under Minnesota Statutes, section 18.4182.6553.18.5$100,000 each year is from the workers' 18.6compensation fund for the operation of 18.7the meatpacking industry workers' rights 18.8ombudsman under Minnesota Statutes, 18.9section 179.87.

18.10Subd. 4.Labor Standards/Apprenticeship 2,629,0002,995,000

18.11Appropriations by Fund18.12General 1,864,0002,214,00018.1318.14Workforce Development765,000781,000

18.15The appropriation from the workforce 18.16development fund is for the apprenticeship 18.17program under Minnesota Statutes, chapter 18.18178, and includes $100,000 each year for 18.19labor education and advancement program 18.20grants.18.21$360,000 the first year and $300,000 the 18.22second year from the general fund are for 18.23prevailing wage enforcement of which 18.24$60,000 in the first year is for outreach and 18.25survey participation improvements.18.26$800,000 the first year and $1,200,000 the 18.27second year from the general fund are for the 18.28independent contractor certification under 18.29Minnesota Statutes, section 181.723.

18.30Subd. 5.General Support6,043,0006,006,000

18.31This appropriation is from the workers' 18.32compensation fund.

18.3318.34Sec. 5. BUREAU OF MEDIATION SERVICES

19.1Subdivision 1.Total Appropriation$1,850,000$1,877,000

19.2The amounts that may be spent for each 19.3purpose are specified in the following 19.4subdivisions.

19.5Subd. 2.Mediation Services1,700,0001,727,000

19.619.7Subd. 3.Labor Management Cooperation Grants150,000150,000

19.8$150,000 each year is for grants to area labor 19.9management committees. Grants may be 19.10awarded for a 12-month period beginning 19.11July 1 each year. Any unencumbered balance 19.12remaining at the end of the first year does not 19.13cancel but is available for the second year.

19.1419.15Sec. 6. WORKERS' COMPENSATION COURT OF APPEALS$1,663,000$1,710,000

19.16This appropriation is from the workers' 19.17compensation fund. 

19.18Sec. 7. BOARD OF ACCOUNTANCY$493,000$499,000

19.1919.2019.2119.22Sec. 8. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN$795,000$805,000

19.23Sec. 9. BOARD OF BARBER EXAMINERS$711,000$724,000

19.2419.25Sec. 10. MINNESOTA BOXING COMMISSION$50,000$-0-

19.26To transition the commission to being a 19.27self-funded entity.19.28    Sec. 11. BIOSCIENCE ZONES DESIGNATION.19.29    The commissioner of employment and economic development must establish a 19.30criteria for expanding the zones. The criteria must limit designating a new zone to a 19.31community that has adequate resources and infrastructure to support bioindustry, including 20.1postsecondary institutions, strong health care systems, and existing bioscience companies. 20.2It must also require that a new zone be located on a transportation corridor.20.3    Sec. 12. NANOTECHNOLOGY DEVELOPMENT FUND PROGRAM.20.4    Subdivision 1.Program established; purpose.The nanotechnology 20.5development fund program (NDF) is established to develop a collaborative economic 20.6development initiative between the state of Minnesota, the private sector, and multiple 20.7academic institutions to promote by small businesses an increased use of advanced 20.8nanoinstrumentation for characterization, fabrication, and other related processes; 20.9provide research consulting by knowledgeable specialists; and provide student internship 20.10opportunities to increase nanotechnology experience by working with small, medium, or 20.11large Minnesota companies. The NDF program shall be administered by the Department 20.12of Employment and Economic Development and is not a state agency.20.13    Subd. 2.Definition; qualifying Minnesota small business."Qualifying Minnesota 20.14small business" means:20.15    (1) a Minnesota small business corporation, sole proprietorship, or partnership that 20.16has fewer than 50 employees; or 20.17    (2) a Minnesota business corporation, sole proprietorship, or partnership that:20.18    (i) has 51 to 100 employees; and20.19    (ii) demonstrates current financial adversity or risk or a major prospect of aiding 20.20the business's long-term outlook by significant use of nanotechnology in the business's 20.21offerings.20.22    Subd. 3.Fund; grants.The commissioner shall extend onetime matching grants 20.23from the NDF to qualifying Minnesota small businesses located throughout the state to:20.24    (1) add nanotechnology applications to products that are being developed by 20.25Minnesota small businesses to enhance distinctiveness;20.26    (2) promote the depth, breadth, and value of technologies being developed by 20.27Minnesota businesses with the aid of nanotechnology;20.28    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product 20.29time-to-market, with higher incidence of distinct product characteristics;20.30    (4) provide Minnesota small businesses with broader access to experienced research 20.31consultants; and20.32    (5) increase the number of researchers experienced in working with 20.33nanoinstrumentation.20.34    Subd. 4.Grant application and award procedure.(a) The commissioner may 20.35give priority to applicants:21.1    (1) whose intellectual property would benefit from utilization of nanoinstrumentation 21.2not possessed in-house;21.3    (2) who are currently utilizing nanoinstrumentation either at the University of 21.4Minnesota or a private sector location on a leased, hourly basis; and21.5    (3) who wish to increase their access to experienced research consultants.21.6    (b) The commissioner shall decide whether to award a grant to an eligible applicant 21.7based on:21.8    (1) the applicant's planned frequency of usage of nanoinstrumentation for 21.9characterization, fabrication, and other related processes; and21.10    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form 21.11of a signed affidavit from a certified facility to confirm the one-to-one private sector 21.12investment has been met.21.13    (c) A grant made under this section must:21.14    (1) include verification of matching rental fees or internship stipends paid by the 21.15grantee; and21.16    (2) be for a total amount paid to each grantee of not less than $500 nor more than 21.17$20,000 within the biennium.21.18    Subd. 5.Administration.The commissioner of employment and economic 21.19development must develop and maintain a record-keeping system that specifies how 21.20funds from the NDF are applied for and distributed. Businesses receiving grants 21.21from the NDF must provide contact information, the date and time of the use of the 21.22nanoinstrumentation, proof of their matching contribution to meet the rental costs or 21.23provide an internship's stipend, and a general statement of the expected outcome from 21.24the use of the nanoinstrumentation, to the extent documentation can be made without 21.25divulging proprietary information.21.26    Subd. 6.Gifts and donations.Gifts and donations, including land or interests 21.27in land, may be made to NDF. Noncash gifts and donations must be disposed of for 21.28cash as soon as the commissioner of employment and economic development can 21.29prudently maximize the value of the gift or donation. All funds must be credited to the 21.30nanotechnology development fund. All interest earned by the fund must be credited to 21.31the NDF.21.32    Subd. 7.Report to legislature.By June 30 of each odd-numbered year, the 21.33commissioner of employment and economic development must submit a report to the 21.34legislature with statistics about the use of the NDF.21.35    Sec. 13. WORK GROUP.22.1    The commissioner of employment and economic development shall convene a work 22.2group to evaluate the impact of the money appropriated for wage incentives and how the 22.3wage incentive program works. The work group is to make recommendations to the 22.4legislature by January 15, 2008.22.5ARTICLE 322.6EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS22.7    Section 1. Minnesota Statutes 2006, section 116J.401, is amended by adding a 22.8subdivision to read:22.9    Subd. 4.Use of funds for unemployed worker assistance.Payment of employee 22.10compensation costs from the Wagner-Peyser Act referenced in subdivision 1, clause 22.11(8), must be used to provide direct benefit to unemployed and underemployed workers 22.12through the state's workforce centers. At least 75 percent of the employee compensation 22.13paid from Wagner-Peyser funds must be used for employees at workforce centers who 22.14provide direct assistance to unemployed and underemployed workers and no more than 22.1525 percent may be used for providing hiring and human resource services for employers. 22.16The funds under this section may be used to establish an internet based labor exchange 22.17system. By July 1 of each year, the commissioner must submit a report to the committees 22.18of the legislature responsible for oversight of unemployment insurance with details on 22.19the use of Wagner-Peyser funds, including the number of employee positions funded, the 22.20location of the employees, and the use of funds for internet labor exchange system and 22.21other business assistance.22.22    Sec. 2. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT 22.23INVESTMENT FUND.22.24    Subdivision 1.Eligible organization.For the purposes of this section, "eligible 22.25organization" means an organization established pursuant to section 116J.415 which 22.26provides business financing to greater Minnesota businesses.22.27    Subd. 2.Investment fund establishment.The commissioner shall establish an 22.28investment fund from which fund investments can be made in eligible organizations. The 22.29funds repaid by the eligible organizations are to be returned to the fund for subsequent 22.30reinvestment in eligible organizations.22.31    Subd. 3.Authorized investments.The commissioner is authorized to make 22.32investments in eligible organizations. The commissioner shall invest funds in the form of 22.33loans to eligible organizations for the purpose of providing capital to new and expanding 22.34businesses in the form of debt or equity, or both.23.1    Subd. 4.Investment authorized.The commissioner may make investments in 23.2eligible organizations under the following terms:23.3    (1) the organization seeking an investment of funds must guarantee repayment of not 23.4less than 100 percent of the funds invested in the eligible organization;23.5    (2) the investments are to be made in the form of a loan to the eligible organization 23.6for a term of ten years, at an interest rate of one percent;23.7    (3) during the ten-year term of the loan, the eligible organization shall make annual 23.8interest-only payments;23.9    (4) at the end of the ten-year term, the eligible organization is required to make a 23.10payment in the entire principal amount of the initial loan;23.11    (5) the state investment by the commissioner in any eligible organization may not 23.12exceed $2,000,000;23.13    (6) the full amount of state investment will be advanced to the approved eligible 23.14organization upon execution of a formal investment agreement, specifying the terms of the 23.15loan, as well as reporting and other requirements outlined in subdivision 5;23.16    (7) the eligible organization must maintain the funds in accounts that allow the funds 23.17to be readily available for business investments;23.18    (8) the eligible organization must make business investments totaling the entire 23.19amount of funds loaned by the state within three years of the execution of the investment 23.20agreement and subsequent transmittal of the funds; and23.21    (9) an eligible organization that receives an investment under this section shall 23.22report annually, in a format prescribed by the commissioner, the nature and amount of 23.23the business investments made, including, for each financing transaction involving funds 23.24received pursuant to this section, all forms and amounts of financing provided by the 23.25eligible organization from sources other than the investment fund established pursuant to 23.26this section, along with the number of jobs created and private sector investment leveraged.23.27    Subd. 5.Requirements for state investments.All investments are subject to an 23.28investment agreement which must include:23.29    (1) a description of the eligible organization, including business finance experience, 23.30qualifications, and investment history;23.31    (2) a description of the uses of investment proceeds by the eligible organization;23.32    (3) an explanation of the investment objectives;23.33    (4) a description of accounting and reporting standards to be used by the eligible 23.34organization; and23.35    (5) a copy of the most recent audited financial statements of the eligible organization.24.1    Sec. 3. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:24.2    Subdivision 1. Grant account. A contaminated site cleanup and development 24.3grant account is created in the general fund. Money in the account may be used, as 24.4appropriated by law, to make grants as provided in section 
         116J.554 and to pay for the 24.5commissioner's costs in reviewing applications and making grants. Notwithstanding 24.6section 
         16A.28, money appropriated to the account for this program from any source is 24.7available for four years until spent.24.8    Sec. 4. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:24.9    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the 24.10following criteria are met:24.11    (1) the site is not scheduled for funding during the current or next fiscal year under 24.12the Comprehensive Environmental Response, Compensation, and Liability Act, United 24.13States Code, title 42, section 9601, et seq. or under the Environmental Response, and 24.14Liability Act under sections 
         115B.01 to 
         115B.20; 24.15    (2) the appraised value of the site after adjusting for the effect on the value of the 24.16presence or possible presence of contaminants using accepted appraisal methodology, or 24.17the current market value of the site as issued under section 273.121, separately taking into 24.18account the effect of the contaminants on the market value, (i) is less than 75 percent of 24.19the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup 24.20costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and 24.21    (3) (2) if the proposed cleanup is completed, it is expected that the site will be 24.22improved with buildings or other improvements and these improvements will provide a 24.23substantial increase in the property tax base within a reasonable period of time or the site 24.24will be used for an important publicly owned or tax-exempt facility.24.25    Sec. 5. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:24.26    Subdivision 1. Priorities. (a) The legislature expects that applications for grants 24.27will exceed the available appropriations and the agency will be able to provide grants to 24.28only some of the applicant development authorities.24.29    (b) If applications for grants for qualified sites exceed the available appropriations, 24.30the agency shall make grants for sites that, in the commissioner's judgment, provide 24.31the highest return in public benefits for the public costs incurred and that meet all the 24.32requirements provided by law. In making this judgment, the commissioner shall consider 24.33the following factors:25.1    (1) the recommendations or ranking of projects by the commissioner of the Pollution 25.2Control Agency regarding the potential threat to public health and the environment that 25.3would be reduced or eliminated by completion of each of the response action plans;25.4    (2) the potential increase in the property tax base of the local taxing jurisdictions, 25.5considered relative to the fiscal needs of the jurisdictions, that will result from 25.6developments that will occur because of completion of each of the response action plans;25.7    (3) the social value to the community of the cleanup and redevelopment of the site, 25.8including the importance of development of the proposed public facilities on each of 25.9the sites;25.10    (4) the probability that each site will be cleaned up without use of government 25.11money in the reasonably foreseeable future by considering but not limited to the current 25.12market value of the site versus the cleanup cost;25.13    (5) the amount of cleanup costs for each site; and25.14    (6) the amount of the commitment of municipal or other local resources to pay for 25.15the cleanup costs.25.16    The factors are not listed in a rank order of priority; rather the commissioner may 25.17weigh each factor, depending upon the facts and circumstances, as the commissioner 25.18considers appropriate. The commissioner may consider other factors that affect the net 25.19return of public benefits for completion of the response action plan. The commissioner, 25.20notwithstanding the listing of priorities and the goal of maximizing the return of public 25.21benefits, shall make grants that distribute available money to sites both within and outside 25.22of the metropolitan area. The commissioner shall provide a written statement of the 25.23supporting reasons for each grant. Unless sufficient applications are not received for 25.24qualifying sites outside of the metropolitan area, at least 25 percent of the money provided 25.25as grants must be made for sites located outside of the metropolitan area.25.26    Sec. 6. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:25.27    Subdivision 1. Commissioner discretion. The commissioner may make a grant for 25.28up to 50 percent of the eligible costs of a project. The determination of whether to make a 25.29grant for a site is within the discretion of the commissioner, subject to this section and 25.30sections 
         116J.571 to 
         116J.574 and available unencumbered money in the redevelopment 25.31account. For grants made in fiscal years 2008 and 2009, at least 75 percent of the available 25.32grant funds must be used for grants in greater Minnesota. For grants made in fiscal year 25.332010 and later, at least 50 percent of the available grant funds must be used for grants 25.34in greater Minnesota. If the commissioner determines that the applications for grants 25.35for projects in greater Minnesota are less than the amount of grant funds available, the 26.1commissioner may make grants for projects anywhere in Minnesota. The commissioner's 26.2decisions and application of the priorities under this section are not subject to judicial 26.3review, except for abuse of discretion.26.4    Sec. 7. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:26.5    Subd. 1a. Priorities. (a) If applications for grants exceed the available 26.6appropriations, grants shall be made for sites that, in the commissioner's judgment, provide 26.7the highest return in public benefits for the public costs incurred. "Public benefits" include 26.8job creation, bioscience development, environmental benefits to the state and region, 26.9efficient use of public transportation, efficient use of existing infrastructure, provision of 26.10affordable housing, multiuse development that constitutes community rebuilding rather 26.11than single-use development, crime reduction, blight reduction, community stabilization, 26.12and property tax base maintenance or improvement. In making this judgment, the 26.13commissioner shall give priority to redevelopment projects with one or more of the 26.14following characteristics:26.15    (1) the need for redevelopment in conjunction with contamination remediation needs;26.16    (2) the redevelopment project meets current tax increment financing requirements 26.17for a redevelopment district and tax increments will contribute to the project;26.18    (3) the redevelopment potential within the municipality;26.19    (4) proximity to public transit if located in the metropolitan area; and26.20    (5) redevelopment costs related to expansion of a bioscience business in Minnesota; 26.21and26.22    (5)(6) multijurisdictional projects that take into account the need for affordable 26.23housing, transportation, and environmental impact.26.24    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 26.25commissioner may weigh each factor, depending upon the facts and circumstances, as 26.26the commissioner considers appropriate. The commissioner may consider other factors 26.27that affect the net return of public benefits for completion of the redevelopment plan. The 26.28commissioner, notwithstanding the listing of priorities and the goal of maximizing the 26.29return of public benefits, shall make grants that distribute available money to sites both 26.30within and outside of the metropolitan area. Unless sufficient applications are not received 26.31for qualifying sites outside of the metropolitan area, at least 25 percent of the money 26.32provided as grants must be made for sites located outside of the metropolitan area.26.33    Sec. 8. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:27.1    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and 27.2facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in 27.3addition to the powers granted by section 
         116J.035, the commissioner may: 27.4    (1) locate, develop, and promote international markets for Minnesota products 27.5and services;27.6    (2) arrange and lead trade missions to countries with promising international markets 27.7for Minnesota goods, technology, services, and agricultural products;27.8    (3) promote Minnesota products and services at domestic and international trade 27.9shows;27.10    (4) organize, promote, and present domestic and international trade shows featuring 27.11Minnesota products and services;27.12    (5) host trade delegations and assist foreign traders in contacting appropriate 27.13Minnesota businesses and investments;27.14    (6) develop contacts with Minnesota businesses and gather and provide information 27.15to assist them in locating and communicating with international trading or joint venture 27.16counterparts;27.17    (7) provide information, education, and counseling services to Minnesota businesses 27.18regarding the economic, commercial, legal, and cultural contexts of international trade;27.19    (8) provide Minnesota businesses with international trade leads and information 27.20about the availability and sources of services relating to international trade, such as 27.21export financing, licensing, freight forwarding, international advertising, translation, and 27.22custom brokering;27.23    (9) locate, attract, and promote foreign direct investment and business development 27.24in Minnesota to enhance employment opportunities in Minnesota;27.25    (10) provide foreign businesses and investors desiring to locate facilities in 27.26Minnesota information regarding sources of governmental, legal, real estate, financial, and 27.27business services;27.28    (11) enter into contracts or other agreements with private persons and public entities, 27.29including agreements to establish and maintain offices and other types of representation in 27.30foreign countries, to carry out the purposes of promoting international trade and attracting 27.31investment from foreign countries to Minnesota and to carry out this section, without 27.32regard to section 
         16C.06; and 27.33    (12) market trade-related materials to businesses and organizations, and the proceeds 27.34of which must be placed in a special revolving account and are appropriated to the 27.35commissioner to prepare and distribute trade-related materials.28.1    (b) The programs and activities of the commissioner of employment and economic 28.2development and the Minnesota Trade Division may not duplicate programs and activities 28.3of the commissioner of agriculture.28.4    (c) The commissioner shall notify the chairs of the senate Finance and house Ways 28.5and Means Committees of each agreement under this subdivision to establish and maintain 28.6an office or other type of representation in a foreign country.28.7    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing 28.8assistance to official visits by foreign government representatives and shall serve as liaison 28.9to the foreign diplomatic corps in Minnesota.28.10    Sec. 9. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision 28.11to read:28.12    Subd. 4.Workforce development intermediaries."Workforce development 28.13intermediaries" means public, private, or nonprofit entities that provide employment 28.14services to low-income individuals and have a demonstrated track record bringing together 28.15employers and workers, private and public funding streams, and other stakeholders to 28.16implement pathways to career advancement for low-income individuals. Entities may 28.17include, but are not limited to, nonprofit organizations, educational institutions, or the 28.18administrative entity of a local workforce service area.28.19    Sec. 10. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:28.20    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid 28.21for developing programs which assist in the transition of persons from welfare to work and 28.22assist individuals at or below 200 percent of the federal poverty guidelines. The program 28.23is to be operated by the board. The board shall consult and coordinate with program 28.24administrators at the Department of Employment and Economic Development to design 28.25and provide services for temporary assistance for needy families recipients.28.26    Pathways grants-in-aid may be awarded to educational or other nonprofit training 28.27institutions or to workforce development intermediaries for education and training 28.28programs and services supporting education and training programs that serve eligible 28.29recipients.28.30    Preference shall be given to projects that:28.31    (1) provide employment with benefits paid to employees;28.32    (2) provide employment where there are defined career paths for trainees;28.33    (3) pilot the development of an educational pathway that can be used on a continuing 28.34basis for transitioning persons from welfare to work; and29.1    (4) demonstrate the active participation of Department of Employment and 29.2Economic Development workforce centers, Minnesota State College and University 29.3institutions and other educational institutions, and local welfare agencies.29.4    Pathways projects must demonstrate the active involvement and financial 29.5commitment of private business. Pathways projects must be matched with cash or in-kind 29.6contributions on at least a one-to-one one-half-to-one ratio by participating private 29.7business.29.8    A single grant to any one institution shall not exceed $400,000. A portion of a grant 29.9may be used for preemployment training.29.10    Sec. 11. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:29.11    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 29.12have the meanings given them in this subdivision.29.13    (b) "Commissioner" means the commissioner of employment and economic 29.14development.29.15    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the 29.16time employment ceased or was working in the state at the time employment ceased and:29.17    (1) has been permanently separated or has received a notice of permanent separation 29.18from public or private sector employment and is eligible for or has exhausted entitlement 29.19to unemployment benefits, and is unlikely to return to the previous industry or occupation;29.20    (2) has been long-term unemployed and has limited opportunities for employment 29.21or reemployment in the same or a similar occupation in the area in which the individual 29.22resides, including older individuals who may have substantial barriers to employment by 29.23reason of age;29.24    (3) has been terminated or has received a notice of termination of employment as a 29.25result of a plant closing or a substantial layoff at a plant, facility, or enterprise;29.26    (4) has been self-employed, including farmers and ranchers, and is unemployed as a 29.27result of general economic conditions in the community in which the individual resides or 29.28because of natural disasters; or29.29    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who 29.30has spent a substantial number of years in the home providing homemaking service and 29.31(i) has been dependent upon the financial support of another; and now due to divorce, 29.32separation, death, or disability of that person, must find employment to self support; or (ii) 29.33derived the substantial share of support from public assistance on account of dependents 29.34in the home and no longer receives such support.30.1    To be eligible under this clause, the support must have ceased while the worker 30.2resided in Minnesota.30.3    (d) "Eligible organization" means a state or local government unit, nonprofit 30.4organization, community action agency, business organization or association, or labor 30.5organization.30.6    (e) "Plant closing" means the announced or actual permanent shutdown of a single 30.7site of employment, or one or more facilities or operating units within a single site of 30.8employment.30.9    (f) "Substantial layoff" means a permanent reduction in the workforce, which is 30.10not a result of a plant closing, and which results in an employment loss at a single site 30.11of employment during any 30-day period for at least 50 employees excluding those 30.12employees that work less than 20 hours per week.30.13    Sec. 12. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:30.14    Subdivision 1. Determination and collection of special assessment. (a) In addition 30.15to amounts due from an employer under the Minnesota unemployment insurance program, 30.16each employer, except an employer making reimbursements is liable for a special 30.17assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on 30.18all taxable wages, as defined in section 
         268.035, subdivision 24. Beginning January 1, 30.192008, the special assessment shall be levied at a rate of .085 percent per year on all taxable 30.20wages. The assessment shall become due and be paid by each employer on the same 30.21schedule and in the same manner as other amounts due from an employer under section 30.22268.051, subdivision 1
         .30.23    (b) The special assessment levied under this section shall be subject to the same 30.24requirements and collection procedures as any amounts due from an employer under the 30.25Minnesota unemployment insurance program.30.26    Sec. 13. Minnesota Statutes 2006, section 116L.666, subdivision 1, is amended to read:30.27    Subdivision 1. Designation of workforce service areas. For the purpose of 30.28administering federal, state, and local employment and training services, the commissioner 30.29shall designate the geographic boundaries for workforce service areas in Minnesota.30.30    The commissioner shall approve a request to be a workforce service area from:30.31    (1) a home rule charter or statutory city with a population of 200,000 or more or a 30.32county with a population of 200,000 or more; or31.1    (2) a consortium of contiguous home rule charter or statutory cities or counties 31.2with an aggregate population of 200,000 or more that serves a substantial part of one or 31.3more labor markets.31.4    The commissioner may approve a request to be a workforce service area from a 31.5home rule charter or statutory city or a county or a consortium of contiguous home 31.6rule charter or statutory cities or counties, without regard to population, that serves a 31.7substantial portion of a labor market area.31.8    The commissioner shall make a final designation of workforce service areas within 31.9the state after consulting with local elected officials and the governor's Workforce 31.10Development Council. Existing service delivery areas designated under the federal Job 31.11Training Partnership Act shall be initially designated as workforce service areas providing 31.12that no other petitions are submitted by local elected officials.31.13    The commissioner may redesignate workforce service areas, upon the advice and 31.14consent of the affected local elected officials, no more frequently than every two years. 31.15These redesignations must be made not later than four months before the beginning of a 31.16program year.31.17    Sec. 14. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:31.18    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit 31.19corporation with which it has entered into an agreement under subdivision 1. These 31.20loans must be used to support a new or expanding business. This support may include 31.21such forms of financing as the sale of goods to the business on installment or deferred 31.22payments, lease purchase agreements, or royalty investments in the business. The interest 31.23rate charged by a nonprofit corporation for a loan under this subdivision must not exceed 31.24the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the 31.25nonprofit corporation may charge a loan origination fee equal to or less than one percent 31.26of the loan value. The nonprofit corporation may retain the amount of the origination fee. 31.27The nonprofit corporation must provide at least an equal match to the loan received by the 31.28board. The maximum loan available to the nonprofit corporation under this subdivision is 31.29$50,000. Loans made to the nonprofit corporation under this subdivision may be made 31.30without interest. Repayments made by the nonprofit corporation must be deposited in the 31.31revolving fund created for urban initiative grants.31.32    Sec. 15. [116O.115] SMALL BUSINESS GROWTH ACCELERATION 31.33PROGRAM.32.1    Subdivision 1.Establishment; purpose.The small business growth acceleration 32.2program is established. The purpose of the program is to (1) help qualified companies 32.3implement technology and business improvements; and (2) bridge the gap between 32.4standard market pricing for technology and business improvements and what qualified 32.5companies can afford to pay.32.6    Subd. 2.Qualified company.A company is qualified to receive assistance under 32.7the small business growth acceleration program if it is a manufacturing company or a 32.8manufacturing-related service company that employs 100 or fewer full-time equivalent 32.9employees.32.10    Subd. 3.Applications for assistance.A company seeking assistance under the 32.11small business growth acceleration program must file an application according to the 32.12requirements of the corporation. A company's application for small business growth 32.13acceleration program assistance must include documentation of the company's overall plan 32.14for technology and business improvement and prioritize the components of the overall 32.15plan. The application must also document the company's need for small business growth 32.16acceleration program funds in order to carry forward the highest priority components of 32.17the plan.32.18    Subd. 4.Fund awards; use of funds.(a) The corporation shall establish 32.19procedures for determining which applicants for assistance under the small business 32.20growth acceleration program will receive program funding. Funding shall be awarded 32.21only to accelerate a qualified company's adoption of needed technology or business 32.22improvements when the corporation concludes that it is unlikely the improvements could 32.23be accomplished in any other way.32.24    (b) The maximum amount of funds awarded to a qualified company under the small 32.25business growth acceleration program for a particular project must not exceed 50 percent 32.26of the total cost of a project and must not under any circumstances exceed $25,000 during 32.27a calendar year. The corporation shall not award to a qualified company small business 32.28growth acceleration program funds in excess of $50,000 per year.32.29    (c) Any funds awarded to a qualified company under the small business growth 32.30acceleration program must be used for business services and products that will enhance the 32.31operation of the company. These business services and products must come either directly 32.32from the corporation or from a network of expert providers identified and approved by 32.33the corporation. No company receiving small business growth acceleration program 32.34funds may use the funds for refinancing, overhead costs, new construction, renovation, 32.35equipment, or computer hardware.33.1    (d) Any funds awarded must be disbursed to the qualified company as reimbursement 33.2documented according to requirements of the corporation.33.3    Subd. 5.Service agreements.The corporation shall enter a written service 33.4agreement with each company awarded funds under the small business growth acceleration 33.5program. Each service agreement shall clearly articulate the company's need for service, 33.6state the cost of the service, identify who will provide the service, and define the scope of 33.7the service that will be provided. The service agreement must also include an estimate 33.8of the financial impact of the service on the company and require the company to report 33.9the actual financial impact of the service to the corporation 24 months after the service is 33.10provided.33.11    Subd. 6.Reporting.The corporation shall report annually to the legislative 33.12committees with fiscal jurisdiction over the Department of Employment and Economic 33.13Development:33.14    (1) the funds awarded under the small business growth acceleration program during 33.15the past 12 months;33.16    (2) the estimated financial impact of the funds awarded to each company receiving 33.17service under the program; and33.18    (3) the actual financial impact of funds awarded during the past 24 months.33.19    Sec. 16. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.33.20    Subdivision 1.Definitions.For the purposes of this section and section 179.87: 33.21    (1) "employer" means any person or business entity having 25 or more employees 33.22in the meatpacking industry; and33.23    (2) "meatpacking industry" means business operations in which slaughtering, 33.24butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry 33.25packing, poultry manufacturing, pet food manufacturing, processing of meatpacking 33.26products, or rendering is carried on. Meatpacking products include livestock and poultry 33.27products.33.28    Subd. 2.Right to adequate facilities.An employer must provide its employees:33.29    (1) adequate and working restroom facilities;33.30    (2) adequate room for meal and rest breaks;33.31    (3) adequate locker facilities; and33.32    (4) adequate time for necessary restroom and meal breaks as required under chapter 33.33177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter 33.34126, or a valid collective bargaining agreement.34.1    Subd. 3.Right to adequate equipment and training.An employer must furnish its 34.2employees with equipment and training that is adequate to perform the job task assigned. 34.3An employer must make ongoing skill development and training opportunities, including 34.4supervisory training, available to employees.34.5    Subd. 4.Information provided to employee by employer.(a) An employer must 34.6provide an explanation in an employee's native language of the employee's rights and 34.7duties as an employee either person-to-person or through written materials as required 34.8by state or federal law, or a valid collective bargaining agreement that, at a minimum, 34.9includes:34.10    (1) a complete description of the salary and benefits plans as they relate to the 34.11employee as required under chapter 181;34.12    (2) a job description for the employee's position as required under chapter 181;34.13    (3) a description of leave policies as required under chapter 181 and United States 34.14Code, title 29, chapter 28;34.15    (4) a description of the work hours and work hours policy as required under chapter 34.16181; United States Code, title 29, chapter 201; or a valid collective bargaining agreement; 34.17and34.18    (5) a description of the occupational hazards known to exist for the position as 34.19required under chapters 181 and 182 and United States Code, title 29, chapter 15.34.20    (b) The explanation must also include information on the following employee rights 34.21as protected by state or federal law and a description of where additional information 34.22about those rights may be obtained:34.23    (1) the right to organize and bargain collectively as required under this chapter and 34.24chapter 177, and United States Code, title 29, chapter 7;34.25    (2) the right to a safe workplace as required under chapters 181 and 182 and United 34.26States Code, title 29, chapter 15; and34.27    (3) the right to be free from discrimination as required under this chapter and 34.28chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.34.29    Subd. 5.Civil action.A person aggrieved as a result of a violation of this section 34.30may file suit in any district court of this state. If the court finds that the respondent has 34.31intentionally violated this section, the court may award damages up to and including an 34.32amount equal to the original damages and may provide injunctive relief.34.33    Subd. 6.Criminal penalty.An employer who violates this section is guilty of a 34.34misdemeanor.35.1    Sec. 17. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS 35.2OMBUDSMAN.35.3    Subdivision 1.Position established.The position of meatpacking industry workers 35.4rights ombudsman is established within the Department of Labor and Industry. The 35.5ombudsman shall be an employee of the department. The ombudsman shall be appointed 35.6by the commissioner in consultation with the chairs of the standing committees of the 35.7senate and house of representatives with jurisdiction over labor and employment issues in 35.8accordance with the preference established in subdivision 5.35.9    Subd. 2.Duties.The ombudsman shall inspect and review the practices and 35.10procedures of meatpacking operations in the state. The ombudsman shall work to ensure 35.11workers rights under section 179.86 are protected.35.12    Subd. 3.Access.The ombudsman or designated representatives of the ombudsman 35.13shall have access to all meatpacking operations in the state at any time meatpacking 35.14products are being processed and industry workers are on the job.35.15    Subd. 4.Office.Necessary office space, furniture, equipment, and supplies as 35.16well as necessary assistance for the ombudsman shall be provided by the Department of 35.17Labor and Industry.35.18    Subd. 5.Language preference.Preference shall be given to applicants for the 35.19ombudsman position who are fluent in languages in addition to English.35.20    Subd. 6.Report.The ombudsman shall, on or before December 1 of each year, 35.21submit a report to the members of the legislature and the governor regarding any 35.22recommended actions the ombudsman deems necessary or appropriate to provide for the 35.23fair treatment of workers in the meatpacking industry.35.24    Sec. 18. Minnesota Statutes 2006, section 181.78, is amended by adding a subdivision 35.25to read:35.26    Subd. 4.Forfeiture of employer rights.(a) This subdivision applies to an 35.27invention or proposal by an employee in which the employer has an enforceable interest 35.28by contract or otherwise.35.29    (b) An employer who has a right to develop or utilize an invention or proposal 35.30must make a substantial investment in the invention or proposal within five years of the 35.31submission of the invention or proposal or forfeit all rights and interests in the invention 35.32or proposal to the employee.35.33    (c) An employee who has acquired the rights and interests of an employer under 35.34paragraph (b) may transfer that interest in the invention or proposal to anyone.36.1    (d) An employer must notify in writing an employee who submits an invention or 36.2proposal to the employer of the employee's right under this subdivision within ten days of 36.3the submission. The employer must date and describe the proposal or invention received 36.4by the employer and provide a copy to the employee.36.5    Sec. 19. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE 36.6PRESENCE OF LIQUOR.36.7    No minor under the age of 18 shall be employed in any rooms constituting the place 36.8in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any 36.9tasks involving the serving, dispensing, or handling of such liquors that are consumed on 36.10the premises except that:36.11    (1) minors who have reached the age of 16 may be employed to perform busing or 36.12dishwashing services in those rooms or areas of a restaurant, hotel, motel, or resort where 36.13the presence of intoxicating liquor is incidental to food service or preparation; 36.14    (2) minors who have reached the age of 16 may be employed to perform busing or 36.15dishwashing services or to provide waiter or waitress service in rooms or areas where the 36.16presence of 3.2 percent malt liquor is incidental to food service or preparation;36.17    (3) minors who have reached the age of 16 may be employed to provide musical 36.18entertainment in those rooms or areas where the presence of intoxicating liquor and 3.236.19percent malt liquor is incidental to food service or preparation; and 36.20    (4) minors are not prevented from working at tasks which are not prohibited by law 36.21in establishments where liquor is sold, served, dispensed, or handled in those rooms or 36.22areas where no liquor is consumed or served.36.23    Sec. 20. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:36.24    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on 36.25employers and employees of this state resulting from personal injuries and illnesses arising 36.26out of work situations is substantial; that the prevention of these injuries and illnesses is an 36.27important objective of the government of this state; that the greatest hope of attaining this 36.28objective lies in programs of research and education, and in the earnest cooperation of 36.29government, employers and employees; and that a program of regulation and enforcement 36.30is a necessary supplement to these more basic programs.36.31    The legislature declares it to be its purpose and policy through the exercise of its 36.32powers to assure so far as possible every worker in the state of Minnesota safe and 36.33healthful working conditions and to preserve our human resources by:37.1    (a) authorizing the Occupational Safety and Health Advisory Council to advise, 37.2consult with or recommend on any matters relating to the Minnesota occupational 37.3safety and health plan to the commissioner of labor and industry and by authorizing the 37.4commissioner of labor and industry to promulgate and enforce mandatory occupational 37.5safety and health standards applicable to employers and employees in the state of 37.6Minnesota;37.7    (b) encouraging employers and employees to increase their efforts to reduce the 37.8number of occupational safety and health hazards at their places of employment, and to 37.9stimulate employers and employees to institute new and to perfect existing programs for 37.10providing safe and healthful working conditions;37.11    (c) providing that employers and employees have separate but dependent 37.12responsibilities and rights with respect to achieving safe and healthful working conditions;37.13    (d) providing for research in the field of occupational safety and health; including 37.14the psychological factors involved, and by developing innovative methods, techniques, 37.15and approaches for dealing with occupational safety and health problems;37.16    (e) exploring ways to discover latent diseases, establishing causal connections 37.17between diseases and work in environmental conditions, and conducting other research 37.18relating to health problems, in recognition of the fact that occupational health standards 37.19present problems often different from those involved in occupational safety;37.20    (f) utilizing advances already made by federal laws and regulations providing safe 37.21and healthful working conditions;37.22    (g) providing criteria which will assure insofar as practicable that no employee 37.23will suffer diminished health, functional capacity, or life expectancy as a result of work 37.24experience;37.25    (h) providing an effective enforcement program which shall include locating 37.26enforcement personnel in areas of the state with a higher incidence of workplace fatalities, 37.27injuries, and complaints and a prohibition against giving advance notice of an inspection 37.28and sanctions for any individual violating this prohibition;37.29    (i) providing for appropriate reporting procedures with respect to occupational 37.30safety and health, which procedures will help achieve the objectives of this chapter and 37.31accurately describe the nature of the occupational safety and health problem;37.32    (j) encouraging joint labor-management efforts to reduce injuries and diseases 37.33arising out of employment;37.34    (k) providing consultation to employees and employers which will aid them in 37.35complying with their responsibilities under this chapter where such consultation does not 37.36interfere with the effective enforcement of this chapter; and38.1    (l) providing for training programs to increase the number and competence of 38.2personnel engaged in the field of occupational safety and health.38.3    Sec. 21. [182.6551] CITATION.38.4    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."38.5    Sec. 22. [182.6552] DEFINITIONS.38.6    Subdivision 1.Direct patient care worker."Direct patient care worker" means an 38.7individual doing the job of directly providing physical care to patients including nurses, as 38.8defined by section 148.171, who provide physical care to patients.38.9    Subd. 2.Health care facility."Health care facility" means a hospital as defined in 38.10section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55, 38.11subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.38.12    Subd. 3.Safe patient handling."Safe patient handling" means a process, based on 38.13scientific evidence on causes of injuries, that uses safe patient handling equipment rather 38.14than people to transfer, move, and reposition patients in all health care facilities to reduce 38.15workplace injuries. This process also reduces the risk of injury to patients.38.16    Subd. 4.Safe patient handling equipment."Safe patient handling equipment" 38.17means engineering controls, lifting and transfer aids, or mechanical assistive devices used 38.18by nurses and other direct patient care workers instead of manual lifting to perform the 38.19acts of lifting, transferring, and repositioning health care facility patients and residents.38.20    Sec. 23. [182.6553] SAFE PATIENT HANDLING PROGRAM.38.21    Subdivision 1.Safe patient handling program required.(a) By July 1, 2008, 38.22every licensed health care facility in the state shall adopt a written safe patient handling 38.23policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing 38.24manual lifting of patients by nurses and other direct patient care workers by utilizing 38.25safe patient handling equipment.38.26    (b) The program shall address:38.27    (1) assessment of hazards with regard to patient handling;38.28    (2) the acquisition of an adequate supply of appropriate safe patient handling 38.29equipment;38.30    (3) initial and ongoing training of nurses and other direct patient care workers on 38.31the use of this equipment;38.32    (4) procedures to ensure that physical plant modifications and major construction 38.33projects are consistent with program goals; and 39.1    (5) periodic evaluations of the safe patient handling program.39.2    Subd. 2.Safe patient handling committee.(a) By July 1, 2008, every licensed 39.3health care facility in the state shall establish a safe patient handling committee either by 39.4creating a new committee or assigning the functions of a safe patient handling committee 39.5to an existing committee.39.6    (b) Membership of a safe patient handling committee or an existing committee must 39.7meet the following requirements: 39.8    (1) at least half the members shall be nonmanagerial nurses and other direct patient 39.9care workers; and 39.10    (2) in a health care facility where nurses and other direct patient care workers 39.11are covered by a collective bargaining agreement, the union shall select the committee 39.12members proportionate to its representation of nonmanagerial workers, nurses, and other 39.13direct patient care workers.39.14    (c) A health care organization with more than one covered health care facility may 39.15establish a committee at each facility or one committee to serve this function for all the 39.16facilities. If the organization chooses to have one overall committee for multiple facilities, 39.17at least half of the members of the overall committee must be nonmanagerial nurses and 39.18other direct patient care workers and each facility must be represented on the committee.39.19    (d) Employees who serve on a safe patient handling committee must be compensated 39.20by their employer for all hours spent on committee business.39.21    Subd. 3.Facilities with existing programs.A facility that has already adopted a 39.22safe patient handling policy that satisfies the requirements of subdivision 1, and established 39.23a safe patient handling committee by July 1, 2008, is considered to be in compliance 39.24with those requirements. The committee must continue to satisfy the requirements of 39.25subdivision 2, paragraph (b), on an ongoing basis. 39.26    Subd. 4.Committee duties.A safe patient handling committee shall:39.27    (1) complete a patient handling hazard assessment that: 39.28    (i) considers patient handling tasks, types of nursing units, patient populations, and 39.29the physical environment of patient care areas; 39.30    (ii) identifies problems and solutions; 39.31    (iii) identifies areas of highest risk for lifting injuries; and 39.32    (iv) recommends a mechanism to report, track, and analyze injury trends;39.33    (2) make recommendations on the purchase, use, and maintenance of an adequate 39.34supply of appropriate safe patient handling equipment;40.1    (3) make recommendations on training of nurses and other direct patient care 40.2workers on use of safe patient handling equipment, initially when the equipment arrives at 40.3the facility and periodically afterwards;40.4    (4) conduct annual evaluations of the safe patient handling implementation plan and 40.5progress toward goals established in the safe patient handling policy; and40.6    (5) recommend procedures to ensure that, when remodeling of patient care areas 40.7occurs, the plans incorporate safe patient handling equipment or the physical space and 40.8construction design needed to accommodate safe patient handling equipment at a later date.40.9    Subd. 5.Training materials.The commissioner shall make training materials on 40.10implementation of this section available to all health care facilities at no cost as part of the 40.11training and education duties of the commissioner under section 182.673.40.12    Subd. 6.Enforcement.This section shall be enforced by the commissioner under 40.13section 182.661. A violation of this section is subject to the penalties provided under 40.14section 182.666.40.15    Subd. 7.Grant program.The commissioner may make grants to health care 40.16facilities to acquire safe patient handling equipment and for training on safe patient 40.17handling and safe patient handling equipment. Grants to any one facility may not exceed 40.18$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The 40.19commissioner shall establish a grant application process. The commissioner may give 40.20priority for grants to facilities that demonstrate that acquiring safe patient handling 40.21equipment will impose a financial hardship on the facility. For health care facilities 40.22that provide evidence of hardship, the commissioner may waive the 50 percent match 40.23requirement and may grant such a facility more than $40,000. Health care facilities that 40.24the commissioner determines are experiencing hardship shall not be required to meet the 40.25safe patient handling requirements until July 1, 2012.40.26    Sec. 24. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:40.27    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall not 40.28be eligible to receive unemployment benefits for any week with respect to which the 40.29applicant is receiving, has received, or has filed for payment, equal to or in excess of the 40.30applicant's weekly unemployment benefit amount, in the form of:40.31    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause 40.32shall not apply to vacation pay paid upon a permanent separation from employment;40.33    (2) severance pay, bonus pay, sick pay, and any other money payments, except 40.34earnings under subdivision 5, and back pay under subdivision 6, paid by an employer 40.35because of, upon, or after separation from employment, but only if the money payment is 41.1considered wages at the time of payment under section 
         268.035, subdivision 29, or United 41.2States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;. 41.3This clause does not apply to the first $10,000 of any amount of severance pay, bonus 41.4pay, sick pay, or any other payments paid to an employee with annual salary or wages 41.5under $75,000; or41.6    (3) pension, retirement, or annuity payments from any plan contributed to by a base 41.7period employer including the United States government, except Social Security benefits 41.8which are provided for in subdivision 4. The base period employer contributed to the 41.9plan if the contribution is excluded from the definition of wages under section 
         268.035, 41.10subdivision 29
         , clause (1), or United States Code, title 26, section 3121, clause (2), of 41.11the Federal Insurance Contribution Act.41.12    An applicant shall not be considered to have received the lump sum payment if the 41.13applicant immediately deposits that payment in a qualified pension plan or account; or41.14    (4) holiday pay.41.15    (b) This subdivision shall apply to all the weeks of payment and shall be applied to 41.16the period immediately following the last day of employment. The number of weeks of 41.17payment shall be determined as follows:41.18    (1) if the payments are made periodically, the total of the payments to be received 41.19shall be divided by the applicant's last level of regular weekly pay from the employer; or41.20    (2) if the payment is made in a lump sum, that sum shall be divided by the applicant's 41.21last level of regular weekly pay from the employer.41.22    (c) If the payment is less than the applicant's weekly unemployment benefit amount, 41.23unemployment benefits shall be reduced by the amount of the payment. If the computation 41.24of reduced unemployment benefits is not a whole dollar, it shall be rounded down to the 41.25next lower whole dollar.41.26EFFECTIVE DATE.This section is effective for unemployment benefits paid on 41.27or after January 1, 2006, regardless of when the continued request was filed or the week 41.28for which the unemployment benefits are paid.41.29    Sec. 25. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision 41.30to read:41.31    Subd. 5.Unemployment insurance benefits telephone system.The commissioner 41.32must ensure that the telephone system used for unemployment insurance benefits provides 41.33an option for any caller to speak to an unemployment insurance specialist. An individual 41.34who calls any of the publicized telephone numbers seeking information about applying for 41.35benefits or on the status of a claim must have the option to speak on the telephone to a 42.1specialist who can provide direct assistance or can direct the caller to the person or office 42.2that is able to respond to the caller's needs.42.3    Sec. 26. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:42.4    Subd. 13. Supported employment.(a) "Supported employment" means 42.5employment of a person with a disability so severe that the person needs ongoing training 42.6and support to get and keep a job in which:42.7    (1) the person engages in paid work in a position removed from the service vendor's 42.8site where individuals without disabilities who do not require public subsidies also may 42.9be employed;42.10    (2) public funds are necessary to provide ongoing training and support services 42.11throughout the period of the person's employment; and42.12    (3) the person has the opportunity for social interaction with individuals who do not 42.13have disabilities and who are not paid caregivers.42.14    (b) If the commissioner has certified a rehabilitation facility setting as integrated, 42.15then employment at that site may be considered supported employment.42.16    Sec. 27. Minnesota Statutes 2006, section 268A.01, is amended by adding a 42.17subdivision to read:42.18    Subd. 14.Affirmative business enterprise employment."Affirmative business 42.19enterprise employment" means employment which provides paid work on the premises of 42.20an affirmative business enterprise as certified by the commissioner.42.21    Affirmative business enterprise employment is considered community employment 42.22for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided 42.23that the wages for individuals reported must be at or above customary wages for the 42.24same employer. The employer must also provide one benefit package that is available to 42.25all employees.42.26    Sec. 28. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:42.27    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit 42.28corporation, or combination thereof establishing a rehabilitation facility shall appoint a 42.29rehabilitation facility board of no fewer than nineseven voting members before becoming 42.30eligible for the assistance provided by sections 
         268A.06 to 
         268A.15. When any city, 42.31town, or county singly establishes such a rehabilitation facility, the board shall be 42.32appointed by the chief executive officer of the city or the chair of the governing board 42.33of the county or town. When any combination of cities, towns, counties, or nonprofit 43.1corporations establishes a rehabilitation facility, the chief executive officers of the cities, 43.2nonprofit corporations, and the chairs of the governing bodies of the counties or towns 43.3shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation 43.4facility, the corporation shall appoint the board of directors. Membership on a board 43.5shall be representative of the community served and shall include a person with a 43.6disability. One-third to one-half of the board shall be representative of industry or 43.7business. The remaining members should be representative of lay associations for persons 43.8with a disability, labor, the general public, and education, welfare, medical, and health 43.9professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude 43.10the appointment of elected or appointed public officials or members of the board of 43.11directors of the sponsoring nonprofit corporation to the board, so long as the representation 43.12described above is preserved. If a county establishes an extended employment program 43.13and manages the program with county employees, the governing board shall be the county 43.14board of commissioners, and other provisions of this chapter pertaining to membership on 43.15the governing board do not apply. 43.16    Sec. 29. Minnesota Statutes 2006, section 268A.15, is amended by adding a 43.17subdivision to read:43.18    Subd. 9.Integrated setting.At the commissioner's discretion, paid work on the 43.19premises of a rehabilitation facility may be certified as an integrated setting after a site 43.20review by the department.43.21    Sec. 30. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision 43.22to read:43.23    Subd. 5.Local planning assistance.A regional development commission or, 43.24in regions not served by regional development commissions, a regional organization 43.25selected by the commissioner of employment and economic development, may develop a 43.26program to support planning on behalf of local units of government. The local planning 43.27must be related to issues of regional or statewide significance and may include, but is not 43.28limited to, the following:43.29    (1) local planning and development assistance, which may include local zoning 43.30ordinances and land use plans;43.31    (2) community or economic development plans, which may include workforce 43.32development plans, housing development plans and market analysis, JOBZ administration, 43.33grant writing assistance, and grant administration;44.1    (3) environment and natural resources plans, which may include solid waste 44.2management plans, wastewater management plans, and renewable energy development 44.3plans;44.4    (4) rural community health services; and44.5    (5) development of geographical information systems to serve regional needs, 44.6including hardware and software purchases and related labor costs.44.7    Each regional development commission or organization shall submit to the 44.8commissioner of employment and economic development an annual work program 44.9that outlines the work items for the upcoming year and establishes the relationship of 44.10the work items to development issues of regional or statewide significance. The entity 44.11completing the annual work program and identifying the statewide development issues 44.12shall consider input from the Departments of Employment and Economic Development, 44.13Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as 44.14appropriate to the issues.44.15    Sec. 31. WORKFORCE ENHANCEMENT FEE.44.16    If the commissioner of employment and economic development determines that 44.17the need for services under the dislocated worker program substantially exceeds the 44.18resources that will be available for the program, the commissioner may increase the 44.19special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no 44.20more than .12 percent of taxable wages.44.21    Sec. 32. FEDERAL PROCUREMENT LIAISON.44.22    The commissioner of employment and economic development must establish and 44.23operate a technology and commercialization unit in the Department of Employment and 44.24Economic Development. Appropriation for this purpose must be used to: coordinate 44.25public and private efforts to procure federal funding for collaborative research and 44.26development projects of primary benefit to small- and medium-sized businesses; promote 44.27contractual relationships between Minnesota businesses who, as recipients of federal 44.28grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess 44.29the research and development capabilities of small- and medium-sized businesses; 44.30undertake referral activities to link Minnesota companies with federal requests for 44.31proposal opportunities; and develop a framework for Minnesota companies to establish 44.32sole-sourcing relationships with federal agencies.45.1    The commissioner must report to the committees in the house of representatives and 45.2the senate having jurisdiction over bioscience and technology issues on the activities of 45.3the technology and commercialization unit by June 30 of each year.45.4    Sec. 33. LOCATION OF NORTHERN MINNESOTA INSPECTORS.45.5    By December 31, 2007, the commissioner of labor and industry must assign three 45.6occupational safety and health inspectors to one or more offices on the Iron Range and one 45.7inspector to an office in Bemidji.45.8    Sec. 34. ROLE OF STATE LEGISLATURE IN TRADE POLICY.45.9    (a) It shall be the policy of the state that approval for the state to be bound by any 45.10trade agreement requires the consent of the state legislature.45.11    (b) Four state legislative contacts must be informed by the governor when any trade 45.12agreement arrives in the governor's office. The four contacts are the majority and minority 45.13leader of the senate or their designated legislators, and the speaker and minority leader in 45.14the house of representatives or their designated legislators. The legislature declares that 45.15the purposes of the state contacts are to:45.16    (1) serve as the state's official legislative liaisons with the governor and the state 45.17legislature on trade-related matters;45.18    (2) serve as the legislature's designated recipients from the governor of federal 45.19requests for consent to consultation regarding investment, procurement, services, or other 45.20provisions of international trade agreements, which impinge on state law or regulatory 45.21authority reserved to the states;45.22    (3) transmit information regarding federal requests from the governor to all 45.23appropriate legislative committees;45.24    (4) issue a formal request to the Department of Employment and Economic 45.25Development and all appropriate state agencies to provide analysis of all proposed trade 45.26agreements' impact on state legislative authority and the economy of the state;45.27    (5) inform all members of the legislature on a regular basis about ongoing trade 45.28negotiations and dispute settlement proceedings with implications for the state more 45.29generally;45.30    (6) communicate the concerns of the legislature to the governor and the United 45.31States trade representative regarding ongoing and proposed trade negotiations; and 45.32    (7) notify the governor and the United States trade representative of the outcome 45.33of any legislative action.46.1    (c) The following actions are required before the state shall consent to the terms of 46.2a trade agreement:46.3    (1) when a federal trade request has been received, the governor must submit the 46.4request to the legislative contacts on a day both houses are in session. The request must 46.5contain a copy of the final legal text of the agreement together with:46.6    (i) a report by the Department of Employment and Economic Development in 46.7consultation with, at a minimum, the following agencies: Department of Administration, 46.8Department of Labor and Industry, Department of Agriculture, Department of Natural 46.9Resources, and the Minnesota Pollution Control Agency. The report shall include an 46.10analysis of how the agreement of the state to the specific provisions of the agreement 46.11will change or affect existing state law;46.12    (ii) a statement of any administrative action proposed to implement these trade 46.13agreement provisions in the state; and 46.14    (iii) a draft of legislation authorizing the state to sign on to the specific listed 46.15provisions of the agreement in question;46.16    (2) at least one public hearing, with adequate public notice, shall occur before the 46.17legislature votes on the bill; and 46.18    (3) the bill authorizing the state to sign on to specific listed provisions of an 46.19agreement is enacted into law.46.20    (d) It is the sense of this legislature that Congress should pass legislation instructing 46.21the United States trade representative to fully and formally consult individual state 46.22legislatures regarding procurement, services, investment, or any other trade agreement 46.23rules that impact state laws or authority before negotiations begin and as they develop, 46.24and to seek consent from state legislatures in addition to governors prior to binding 46.25states to conform their laws to the terms of international commercial agreements. Such 46.26legislation is necessary to ensure the prior informed consent of the state with regard to 46.27future international trade and investment agreements.46.28    (e) The state attorney general shall notify the United States trade representative of 46.29the policies in paragraph (d) in writing no later than 30 days after its effective date, and 46.30shall provide copies of the notice to the president of the senate, speaker of the house of 46.31representatives, the governor, and the state's congressional delegation.46.32    Sec. 35. STUDY; SAFE PATIENT HANDLING.46.33    (a) The commissioner of labor and industry shall study ways to require workers' 46.34compensation insurers to recognize compliance with Minnesota Statutes, section 46.35182.6553, in the workers' compensation premiums of health care and long-term care 47.1facilities. The commissioner shall report by January 15, 2008, the results of the study 47.2to the chairs of the policy committees of the legislature with primary jurisdiction over 47.3workers' compensation issues.47.4    (b) By January 15, 2008, the commissioner must make recommendations to the 47.5legislature regarding funding sources available to health care facilities for safe patient 47.6handling programs and equipment, including, but not limited to, low interest loans, interest 47.7free loans, and federal, state, or county grants.47.8    Sec. 36. WORK GROUP; SAFE PATIENT HANDLING.47.9    The Minnesota State Council on Disability shall convene a work group comprised 47.10of representatives from the Minnesota Medical Association and other organizations 47.11representing clinics, disability advocates, and direct care workers, to do the following:47.12    (1) assess the current options for and use of safe patient handling equipment in 47.13unlicensed outpatient clinics, physician offices, and dental settings;47.14    (2) identify barriers to the use of safe patient handling equipment in these settings; 47.15and47.16    (3) define clinical settings that move patients to determine applicability of the Safe 47.17Patient Handling Act.47.18    The work group must report to the legislature by January 15, 2008, including 47.19reports to the chairs of the senate and house of representatives committees on workforce 47.20development.47.21    Sec. 37. EFFECT ON RULES.47.22    The commissioner of labor and industry shall amend Minnesota Rules, part 47.235200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner 47.24may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting 47.25the amendment required by this section.47.26    Sec. 38. PUBLIC FACILITIES AUTHORITY FUNDING.47.27    To the greatest practical extent, projects on the Public Facilities Authority's 2007 47.28intended use plan, the listings for which were based on the Pollution Control Agency's 47.292006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 47.30qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 47.31section 21, that could not be certified by the Pollution Control Agency by the applicable 47.32deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court 48.1issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to 48.2obtain the required certification from the Pollution Control Agency.48.3    Sec. 39. REPEALER.48.4Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.48.5ARTICLE 448.6LICENSING AND WAGES48.7    Section 1. [154.465] HAIR BRAIDING.48.8    Subdivision 1.Registration.Any person engaged in hair braiding solely for 48.9compensation as a profession, except persons licensed as cosmetologists, shall register 48.10with the Minnesota Board of Barber and Cosmetology Examiners in a form determined 48.11by the board.48.12    Subd. 2.Definition."Hair braiding" means a natural form of hair manipulation that 48.13results in tension on hair strands by beading, braiding, cornrowing, extending, lacing, 48.14locking, sewing, twisting, weaving, or wrapping human hair, natural fibers, synthetic 48.15fibers, and hair extensions into a variety of shapes, patterns, and textures predominantly by 48.16hand and by only using simple braiding devices, and maintenance thereof. Hair braiding 48.17includes what is commonly known as "African-style hair braiding" or "natural hair care" 48.18but is not limited to any particular cultural, ethnic, racial, or religious forms of hair styles. 48.19Hair braiding includes the making of customized wigs from natural hair, natural fibers, 48.20synthetic fibers, and hair extensions. Hair braiding includes the use of topical agents such 48.21as conditioners, gels, moisturizers, oils, pomades, and shampoos. Hair braiding does not 48.22involve the use of penetrating chemical hair treatments, chemical hair coloring agents, 48.23chemical hair straightening agents, chemical hair joining agents, permanent wave styles, 48.24or chemical hair bleaching agents applied to growing human hair. For purposes of this 48.25section, "simple hair braiding devices" means clips, combs, curlers, curling irons, hairpins, 48.26rollers, scissors, needles, thread, and hair binders including adhesives, if necessary, that 48.27are required solely for hair braiding.48.28    Subd. 3.Requirements.In order to qualify for initial registration, any person 48.29engaged in hair braiding solely for compensation as a profession shall satisfactorily 48.30complete instruction at either an accredited school or by an individual, except persons 48.31licensed as cosmetologists approved by the board. Instruction includes coursework 48.32covering the topics of health, safety, sanitation, and state laws related to cosmetology not 48.33to exceed 30 hours. The coursework is encouraged to be provided in a foreign language 49.1format and such availability shall be reported to and posted by the Minnesota Board 49.2of Barber and Cosmetology Examiners.49.3    Subd. 4.Curriculum.An accredited school or an individual approved by the board 49.4desiring to provide the coursework required under subdivision 3 shall have curriculum in 49.5place by January 1, 2008.49.6EFFECTIVE DATE.This section is effective July 1, 2008, except subdivision 4 is 49.7effective the day following final enactment.49.8    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:49.9    Subdivision 1. Examination of records. The commissioner may enter during 49.10reasonable office hours or upon request and inspect the place of business or employment of 49.11any employer of employees working in the state, to examine and inspect books, registers, 49.12payrolls, and other records of any employer that in any way relate to wages, hours, and 49.13other conditions of employment of any employees. The commissioner may transcribe any 49.14or all of the books, registers, payrolls, and other records as the commissioner deems 49.15necessary or appropriate and may question the employees to ascertain compliance with 49.16sections 
         177.21 to 
         177.35 177.435. The commissioner may investigate wage claims or 49.17complaints by an employee against an employer if the failure to pay a wage may violate 49.18Minnesota law or an order or rule of the department. 49.19    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:49.20    Subd. 4. Compliance orders. The commissioner may issue an order requiring an 49.21employer to comply with sections 
         177.21 to 
         177.35 177.435, 
         181.02, 
         181.03, 
         181.031, 49.22181.032
         , 
         181.101, 
         181.11, 
         181.12, 
         181.13, 
         181.14, 
         181.145, 
         181.15, and181.79, 181.932, 49.23and 181.9325, or with any rule promulgated under section 
         177.28. The department shall 49.24serve the order upon the employer or the employer's authorized representative in person or 49.25by certified mail at the employer's place of business. An employer who wishes to contest 49.26the order must file written notice of objection to the order with the commissioner within 49.2715 calendar days after being served with the order. A contested case proceeding must then 49.28be held in accordance with sections 
         14.57 to 
         14.69. If, within 15 calendar days after being 49.29served with the order, the employer fails to file a written notice of objection with the 49.30commissioner, the order becomes a final order of the commissioner. 49.31    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 5, is amended to read:50.1    Subd. 5. Civil actions.(a) The commissioner may bring an action in the district 50.2court where an employer resides or where the commissioner maintains an office to enforce 50.3or require compliance with orders issued under subdivision 4.50.4    (b) If the district court determines that a violation of section 181.932 or 181.9325 50.5occurred, the court may order any appropriate relief, including but not limited to 50.6reinstatement, back pay, restoration of lost service credit, if appropriate, compensatory 50.7damages, and the expungement of any adverse records of a state employee or applicant 50.8for state employment who was the subject of the alleged acts of misconduct, and any 50.9appropriate relief as described in section 181.936.50.10    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:50.11    Subd. 8. Court actions; suits brought by private parties. An employee may bring 50.12a civil action seeking redress for a violation or violations of sections 
         177.21 to 
         177.3550.13177.44 directly to district court. An employer who pays an employee less than the wages 50.14and overtime compensation to which the employee is entitled under sections 
         177.21 to 50.15177.35177.44 is liable to the employee for the full amount of the wages, gratuities, and 50.16overtime compensation, less any amount the employer is able to establish was actually 50.17paid to the employee and for an additional equal amount as liquidated damages. In 50.18addition, in an action under this subdivision the employee may seek damages and other 50.19appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement 50.20between the employee and the employer to work for less than the applicable wage is not 50.21a defense to the action. 50.22    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:50.23    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may 50.24be filed in the district court of the county wherein a violation or violations of sections 50.25177.21
          to 
         177.35177.44 are alleged to have been committed, where the respondent resides 50.26or has a principal place of business, or any other court of competent jurisdiction. The 50.27action may be brought by one or more employees. 50.28    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:50.29    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8, 50.30the court shall order an employer who is found to have committed a violation or violations 50.31of sections 
         177.21 to 
         177.35177.44 to pay to the employee or employees reasonable costs, 50.32disbursements, witness fees, and attorney fees. 51.1    Sec. 8. Minnesota Statutes 2006, section 177.27, is amended by adding a subdivision 51.2to read:51.3    Subd. 11.Investigation of certain complaints.(a) The commissioner shall conduct 51.4an investigation of any matter that alleges a violation of sections 181.932 and 181.9325. 51.5The identity of the person providing the information that initiated the investigation shall 51.6be classified as private data, pursuant to section 13.02, subdivision 12, except that the 51.7identity may be disclosed to a law enforcement agency that is conducting a criminal 51.8investigation of the matter.51.9    (b) For each investigation completed, if the commissioner determines that there is 51.10reasonable cause to believe that an employer has violated section 181.932 or 181.9325, 51.11the commissioner shall report the nature and details of the alleged violation to the head 51.12of the employing agency or the appropriate appointing authority. If appropriate, the 51.13commissioner shall report this information to the attorney general, the policy committees 51.14of the house of representatives and senate having jurisdiction over the subject involved, 51.15and to any other authority that the commissioner deems appropriate. In any case 51.16in which the commissioner submits a report of alleged violations to the head of the 51.17employing agency or appropriate appointing authority, that individual shall report to the 51.18commissioner with respect to any action taken by the individual regarding the activity, the 51.19first report being transmitted no later than 30 days after the date of the auditor's report, 51.20and monthly thereafter until final action has been taken.51.21    (c) This subdivision shall not limit any authority conferred upon the attorney general 51.22or other department or agency of government to investigate and prosecute any matter.51.23    (d) The commissioner shall have all the powers and authority described in this 51.24section to conduct investigations pursuant to this subdivision.51.25    Sec. 9. [177.275] INVESTIGATION PROCEDURE.51.26    (a) The commissioner shall initiate an investigation of a written complaint of 51.27reprisal or retaliation in public employment as prohibited by section 181.932 or 181.9325 51.28within ten working days of its submission. The commissioner shall complete findings 51.29of the investigation within 60 working days thereafter, and shall provide a copy of the 51.30findings to the complaining employee or applicant for employment and to the appropriate 51.31supervisor, manager, employee, or appointing authority. When the allegations contained 51.32in a complaint of reprisal or retaliation are the same as, or similar to, those contained in 51.33another appeal, the commissioner may consolidate the appeals into the most appropriate 51.34format. In these cases, the time limits described in this subdivision shall not apply.52.1    (b) If the commissioner finds that the supervisor, manager, employee, or appointing 52.2power retaliated against the complainant for engaging in protected whistle-blower 52.3activities, the commissioner may issue a compliance order under section 177.27, 52.4subdivision 4.52.5    (c) In order for the governor and the legislature to determine the need to continue 52.6or modify state personnel procedures as they relate to the investigations of reprisals or 52.7retaliation for the disclosure of information by public employees, the commissioner, by 52.8June 30 of each year, shall submit a report to the governor and the legislature regarding 52.9complaints filed, hearings held, and legal actions taken under this section.52.10    Sec. 10. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:52.11    Subdivision 1. General authority. The commissioner may adopt rules, including 52.12definitions of terms, to carry out the purposes of sections 
         177.21 to 
         177.35 177.44, to 52.13prevent the circumvention or evasion of those sections, and to safeguard the minimum 52.14wage and overtime rates established by sections 
         177.24 and 
         177.25. 52.15    Sec. 11. Minnesota Statutes 2006, section 177.30, is amended to read:52.16177.30 KEEPING RECORDS; PENALTY.52.17    Every employer subject to sections 
         177.21 to 
         177.35177.44 must make and keep a 52.18record of: 52.19    (1) the name, address, and occupation of each employee;52.20    (2) the rate of pay, and the amount paid each pay period to each employee;52.21    (3) the hours worked each day and each workweek by the employee; and52.22    (4) for each employer subject to sections 177.41 to 177.44, and while performing 52.23work on public works projects funded in whole or in part with state funds, the prevailing 52.24wage master job classification of each employee working on the project for each hour 52.25worked; and52.26    (4) (5) other information the commissioner finds necessary and appropriate to 52.27enforce sections 
         177.21 to 
         177.35. The records must be kept for three years in or near the 52.28premises where an employee works except each employer subject to sections 177.41 to 52.29177.44, and while performing work on public works projects funded in whole or in part 52.30with state funds, the records must be kept for three years after the contracting authority 52.31has made final payment on the public works project. 52.32    The commissioner may fine an employer up to $1,000 for each failure to maintain 52.33records as required by this section. This penalty is in addition to any penalties provided 52.34under section 
         177.32, subdivision 1. In determining the amount of a civil penalty under 53.1this subdivision, the appropriateness of such penalty to the size of the employer's business 53.2and the gravity of the violation shall be considered. 53.3    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:53.4    Subd. 3. Contract requirements. The contract must specifically state the prevailing 53.5wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also 53.6provide that the contracting authority may demand and the contractor or subcontractor 53.7shall furnish to the contracting authority, copies of any and all payrolls, and that the 53.8contracting authority may examine all records relating to wages paid laborers or mechanics 53.9on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision 53.10are in addition to any other requirements or authority set forth in other laws or rules for 53.11work to which sections 177.41 to 177.44 apply.53.12    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:53.13    Subd. 4. Determination by commissioner; posting; petition for reconsideration.53.14    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all 53.15trades and occupations required in any project must be ascertained before the state asks for 53.16bids. The commissioner of labor and industry shall investigate as necessary to ascertain 53.17the information. The commissionerEach contractor and subcontractor performing work 53.18on a public project shall keep the information posted on the project in at least one 53.19conspicuous place for the information of the employees working on the project. A person 53.20aggrieved by a final determination of the commissioner may petition the commissioner for 53.21reconsideration of findings. A person aggrieved by a decision of the commissioner after 53.22reconsideration may, within 20 days after the decision, petition the commissioner for a 53.23public hearing in the manner of a contested case under sections 
         14.57 to 
         14.61. 53.24    Sec. 14. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:53.25    Subd. 6. Examination of records; investigation by the department. The 53.26Department of Labor and Industry shall enforce this section. The department may 53.27demand, and the contractor and subcontractor shall furnish to the department, copies 53.28of any or all payrolls. The department may examine all records relating to wages paid 53.29laborers or mechanics on work to which sections 
         177.41 to 
         177.44 apply. The department 53.30shall employ at least three investigators to perform on-site project reviews, receive and 53.31investigate complaints of violations of this section, and conduct training and outreach to 53.32contractors and contracting authorities for public works projects financed in whole or 53.33in part with state funds.54.1    Sec. 15. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision 54.2to read:54.3    Subd. 6a.Prevailing wage violations.Upon issuing a compliance order to an 54.4employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to 54.5177.44, the commissioner shall issue a withholding order to the contracting authority 54.6ordering the contracting authority to withhold payment of sufficient sum to the prime 54.7or general contractor on the project to satisfy the back wages assessed or otherwise 54.8cure the violation, and the contracting authority must withhold the sum ordered until 54.9the compliance order has become a final order of the commissioner and has been fully 54.10paid or otherwise resolved by the employer.54.11    During an investigation of a violation of sections 177.41 to 177.44 which the 54.12commissioner reasonably determines is likely to result in the finding of a violation of 54.13sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section 54.14177.27, subdivision 4, the commissioner may notify the contracting authority of the 54.15determination and the amount expected to be assessed and the contracting authority shall 54.16give the commissioner 90 days' prior notice of the date the contracting authority intends to 54.17make final payment.54.18    Sec. 16. [181.723] INDEPENDENT CONTRACTORS.54.19    Subdivision 1.Scope.The definitions in this subdivision apply to this section.54.20    (a) "Person" means any individual, limited liability corporation, corporation, 54.21partnership, incorporated or unincorporated association, sole proprietorship, joint stock 54.22company, or any other legal or commercial entity.54.23    (b) "Department" means the Department of Labor and Industry.54.24    (c) "Commissioner" means the commissioner of labor and industry or a duly 54.25designated representative of the commissioner who is either an employee of the 54.26Department of Labor and Industry or person working under contract with the Department 54.27of Labor and Industry.54.28    (d) "Individual" means a human being.54.29    (e) "Day" means calendar day unless otherwise provided.54.30    (f) "Knowingly" means knew or could have known with the exercise of reasonable 54.31diligence.54.32    (g) "Document" or "documents" includes papers; books; records; memoranda; data; 54.33contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 54.34records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars 54.35maintained in any form or manner.55.1    Subd. 2.Limited application.This section only applies to individuals performing 55.2public or private sector commercial or residential building construction or improvement 55.3services.55.4    Subd. 3.Employee-employer relationship.Except as provided in subdivision 55.54, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an 55.6individual who performs services for a person that are in the course of the person's trade, 55.7business, profession, or occupation is an employee of that person and that person is an 55.8employer of the individual.55.9    Subd. 4.Independent contractor.An individual is an independent contractor and 55.10not an employee of the person for whom the individual is performing services in the course 55.11of the person's trade, business, profession, or occupation only if (a) the individual holds 55.12a current independent contractor exemption certificate issued by the commissioner; and 55.13(b) the individual is performing services for the person under the independent contractor 55.14exemption certificate as provided in subdivision 6. The requirements in clauses (a) and (b) 55.15must be met in order to qualify as an independent contractor and not as an employee of 55.16the person for whom the individual is performing services in the course of the person's 55.17trade, business, profession, or occupation.55.18    Subd. 5.Application.To obtain an independent contractor exemption certificate, 55.19the individual must submit, in the manner prescribed by the commissioner, a complete 55.20application and the certificate fee required under subdivision 14.55.21    (a) A complete application must include all of the following information:55.22    (1) the individual's full name;55.23    (2) the individual's residence address and telephone number;55.24    (3) the individual's business name, address, and telephone number;55.25    (4) the services for which the individual is seeking an independent contractor 55.26exemption certificate;55.27    (5) the individual's Social Security number;55.28    (6) the individual's or the individual's business federal employer identification 55.29number, if a number has been issued to the individual or the individual's business;55.30    (7) any information or documentation that the commissioner requires by rule that 55.31will assist the department in determining whether to grant or deny the individual's 55.32application; and55.33    (8) The individual's sworn statement that the individual meets all of the following 55.34conditions:55.35    (i) the individual maintains a separate business with the individual's own office, 55.36equipment, materials, and other facilities;56.1    (ii) the individual holds or has applied for a federal employer identification number 56.2or has filed business or self-employment income tax returns with the federal Internal 56.3Revenue Service if the person has performed services in the previous year for which the 56.4individual is seeking the independent contractor exemption certificate;56.5    (iii) the individual operates under contracts to perform specific services for specific 56.6amounts of money and under which the individual controls the means of performing the 56.7services;56.8    (iv) the individual incurs the main expenses related to the service that the individual 56.9performs under contract;56.10    (v) the individual is responsible for the satisfactory completion of services that the 56.11individual contracts to perform and is liable for a failure to complete the service;56.12    (vi) the individual receives compensation for service performed under a contract on 56.13a commission or per-job or competitive bid basis and not on any other basis;56.14    (vii) the individual may realize a profit or suffer a loss under contracts to perform 56.15service;56.16    (viii) the individual has continuing or recurring business liabilities or obligations; and56.17    (ix) the success or failure of the individual's business depends on the relationship of 56.18business receipts to expenditures.56.19    (b) Within 30 days of receiving a complete application and the certificate fee, the 56.20commissioner must either grant or deny the application. The commissioner may deny 56.21an application for an independent contractor exemption certificate if the individual has 56.22not submitted a complete application and certificate fee or if the individual does not 56.23meet all of the conditions for holding the independent contractor exemption certificate. 56.24The commissioner may revoke an independent contractor exemption certificate if the 56.25commissioner determines that the individual no longer meets all of the conditions for 56.26holding the independent contractor exemption certificate, commits any of the actions 56.27set out in subdivision 7, or fails to cooperate with a department investigation into the 56.28continued validity of the individual's certificate. Once issued, an independent contractor 56.29exemption certificate remains in effect for two years unless:56.30    (1) revoked by the commissioner; or56.31    (2) canceled by the individual.56.32    (c) If the department denies an individual's original or renewal application for 56.33an independent contractor exemption certificate or revokes an independent contractor 56.34exemption certificate, the commissioner shall issue to the individual an order denying or 56.35revoking the certificate. The commissioner may issue an administrative penalty order to 56.36an individual or person who commits any of the actions set out in subdivision 7.57.1    (d) An individual or person to whom the commissioner issues an order under 57.2paragraph (c) shall have 30 days after service of the order to request a hearing. The request 57.3for hearing must be in writing and must be served on or faxed to the commissioner at the 57.4address or fax number specified in the order by the 30th day after service of the order. 57.5If the individual does not request a hearing or if the individual's request for a hearing is 57.6not served on or faxed to the commissioner by the 30th day after service of the order, the 57.7order shall become a final order of the commissioner and will not be subject to review 57.8by any court or agency. The date on which a request for hearing is served by mail shall 57.9be the postmark date on the envelope in which the request for hearing is mailed. If the 57.10individual serves or faxes a timely request for hearing, the hearing shall be a contested 57.11case hearing and shall be held in accordance with chapter 14.57.12    Subd. 6.Qualifications for exemption certificate.An individual is performing 57.13services for a person under an independent contractor exemption certificate if:57.14    (a) the individual is performing services listed on the individual's independent 57.15contractor exemption certificate;57.16    (b) at the time the individual is performing services listed on the individual's 57.17independent contractor exemption certificate, the individual meets all of the following 57.18conditions:57.19    (1) the individual maintains a separate business with the individual's own office, 57.20equipment, materials, and other facilities;57.21    (2) the individual holds or has applied for a federal employer identification number 57.22or has filed business or self-employment income tax returns with the federal Internal 57.23Revenue Service if the individual performed services in the previous year for which the 57.24individual has the independent contractor exemption certificate;57.25    (3) the individual is operating under contract to perform the specific services for 57.26the person for specific amounts of money and under which the individual controls the 57.27means of performing the services;57.28    (4) the individual is incurring the main expenses related to the services that the 57.29individual is performing for the person under the contract;57.30    (5) the individual is responsible for the satisfactory completion of the services 57.31that the individual has contracted to perform for the person and is liable for a failure 57.32to complete the services;57.33    (6) the individual receives compensation from the person for the services performed 57.34under the contract on a commission or per-job or competitive bid basis and not on any 57.35other basis;58.1    (7) the individual may realize a profit or suffers a loss under the contract to perform 58.2services for the person;58.3    (8) the individual has continuing or recurring business liabilities or obligations; and58.4    (9) the success or failure of the individual's business depends on the relationship of 58.5business receipts to expenditures.58.6    Subd. 7.Prohibited activities.(a) An individual shall not:58.7    (1) perform work as an independent contractor who meets the qualifications under 58.8subdivision 6, without first obtaining from the department an independent contractor 58.9exemption certificate;58.10    (2) perform work as an independent contractor when the department has denied or 58.11revoked the individual's independent contractor exemption certificate;58.12    (3) transfer to another individual or allow another individual to use the individual's 58.13independent contractor exemption certificate;58.14    (4) alter or falsify an independent contractor exemption certificate;58.15    (5) misrepresent the individual's status as an independent contractor; or58.16    (6) make a false material statement, representation, or certification; omit material 58.17information; or alter, conceal, or fail to file a document required by this section or any rule 58.18promulgated by the commissioner under rulemaking authority set out in this section.58.19    (b) A person shall not:58.20    (1) require an individual through coercion, misrepresentation, or fraudulent means to 58.21adopt independent contractor status;58.22    (2) knowingly misrepresent that an individual who has not been issued an 58.23independent contractor exemption certificate or is not performing services for the person 58.24under an independent contractor exemption certificate is an independent contractor; or58.25    (3) make a false material statement, representation, or certification; omit material 58.26information; or alter, conceal, or fail to file a document required by this section or any rule 58.27promulgated by the commissioner under rulemaking authority set out in this section.58.28    (c) A person for whom an individual is performing services must obtain a copy of the 58.29individual's independent contractor exemption certificate before services may commence. 58.30A copy of the independent contractor exemption certificate must be retained for five years 58.31from the date of receipt by the person for whom an individual is performing services.58.32    Subd. 8.Remedies. An individual or person who violates any provision of 58.33subdivision 7 is subject to a penalty to be assessed by the department of up to $5,000 for 58.34each violation. The department shall deposit penalties in the assigned risk safety account.58.35    Subd. 9.Commissioner's powers.(a) In order to carry out the purposes of this 58.36section, the commissioner may:59.1    (1) administer oaths and affirmations, certify official acts, interview, question, take 59.2oral or written statements, and take depositions;59.3    (2) request, examine, take possession of, photograph, record, and copy any 59.4documents, equipment, or materials;59.5    (3) at a time and place indicated by the commissioner, request persons to appear 59.6before the commissioner to give testimony and produce documents, equipment, or 59.7materials;59.8    (4) issue subpoenas to compel persons to appear before the commissioner to give 59.9testimony and produce documents, equipment, or materials; and59.10    (5) with or without notice, enter without delay upon any property, public or private, 59.11for the purpose of taking any action authorized under this subdivision or the applicable 59.12law, including obtaining information or conducting inspections or investigations.59.13    (b) Persons requested by the commissioner to give testimony or produce documents, 59.14equipment, or materials shall respond within the time and in the manner specified by the 59.15commissioner. If no time to respond is specified in the request, then a response shall be 59.16submitted within 30 days of the commissioner's service of the request.59.17    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property 59.18owner's representative, or lessee's representative to permit the commissioner's entry onto 59.19property as provided in paragraph (a), the commissioner may apply for an administrative 59.20inspection order in the Ramsey County District Court or, at the commissioner's discretion, 59.21in the district court in the county in which the property is located. The commissioner may 59.22anticipate that a property owner or lessee will refuse entry if the property owner, lessee, 59.23property owner's representative, or lessee's representative has refused to permit entry on a 59.24prior occasion or has informed the commissioner that entry will be refused. Upon showing 59.25of administrative probable cause by the commissioner, the district court shall issue an 59.26administrative inspection order that compels the property owner or lessee to permit the 59.27commissioner to enter the property for the purposes specified in paragraph (a).59.28    (d) Upon the application of the commissioner, a district court shall treat the failure of 59.29any person to obey a subpoena lawfully issued by the commissioner under this subdivision 59.30as a contempt of court.59.31    Subd. 10.Notice requirements.Unless otherwise specified, service of a document 59.32on a person under this section may be by mail, by personal service, or in accordance with 59.33any consent to service filed with the commissioner. Service by mail shall be accomplished 59.34in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service 59.35shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, 59.36subpart 3.60.1    Subd. 11.Facsimile; timely service.When this section permits a request for 60.2hearing to be served by facsimile on the commissioner, the facsimile shall not exceed 15 60.3pages in length. The request shall be considered timely served if the facsimile is received 60.4by the commissioner, at the facsimile number identified by the commissioner in the order, 60.5no later than 4:30 p.m. central time on the last day permitted for faxing the request. 60.6Where the quality or authenticity of the faxed request is at issue, the commissioner 60.7may require the original request to be filed. Where the commissioner has not identified 60.8quality or authenticity of the faxed request as an issue and the request has been faxed in 60.9accordance with this subdivision, the person faxing the request does not need to file the 60.10original request with the commissioner.60.11    Subd. 12.Time period computation.In computing any period of time prescribed 60.12or allowed by this section, the day of the act, event, or default from which the designated 60.13period of time begins to run shall not be included. The last day of the period so computed 60.14shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the 60.15period runs until the next day which is not a Saturday, Sunday, or legal holiday.60.16    Subd. 13.Rulemaking.The commissioner may, in consultation with the 60.17commissioner of revenue and the commissioner of employment and economic 60.18development, adopt, amend, suspend, and repeal rules under the rulemaking provisions 60.19of chapter 14 that relate to the commissioner's responsibilities under this section. This 60.20subdivision is effective the day following final enactment.60.21    Subd. 14.Fee.The certificate fee for the original application and for the renewal 60.22of an independent contractor exemption certificate shall be $150. If an individual 60.23simultaneously submits an application for both an independent contractor exemption 60.24certificate under this section and a license under section 326.84, the application fee for 60.25the independent contractor exemption certificate shall be reduced to $100. Fees collected 60.26under this subdivision are deposited in the general fund. 60.27    Subd. 15.Notice to commissioner; review by commissioner of revenue.When 60.28the commissioner has reason to believe that an individual who holds a certificate has failed 60.29to maintain all the conditions required by subdivision 3 or is not performing services for a 60.30person under the independent contractor exemption certificate, the commissioner must 60.31notify the commissioner of revenue and the commissioner of employment and economic 60.32development. Upon receipt of notification from the commissioner that an individual who 60.33holds a certificate has failed to maintain all the conditions required by subdivision 3 60.34or is not performing services for a person under the independent contractor exemption 60.35certificate, the commissioner of revenue must review the information returns required 60.36under section 6041A of the Internal Revenue Code. The commissioner of revenue shall 61.1also review the submitted certification that is applicable to returns audited or investigated 61.2under section 289A.35.61.3    Subd. 16.Data classified.Certifications issued by the commissioner are public 61.4data. Applications and required documentation submitted by an individual is private 61.5data on an individual. Upon request of the Department of Revenue or the Department 61.6of Employment and Economic Development, the commissioner may release to the 61.7Department of Revenue and the Department of Employment and Economic Development 61.8applications and required documentation submitted by individuals and investigative data 61.9that relates to the department's issuance or denial of applications and the department's 61.10revocations of certificates. Except as otherwise provided by this subdivision, the 61.11department's investigative data shall be classified as provided in chapter 13.61.12EFFECTIVE DATE.This section is effective July 1, 2008.61.13    Sec. 17. [181.724] PERFORMERS IN RECORDED MEDIA INDUSTRY.61.14    Subdivision 1.Definitions.The definitions in this subdivision apply to section 61.15181.724.61.16    (a) "Performer" means actor, announcer, singer, dancer, narrator, stunt-person, extra, 61.17or any other individual generically or customarily referred to as talent in the recorded 61.18media industry.61.19    (b) "Recorded media industry" means radio or television commercial production, 61.20nonbroadcast audio or video production, sound recording, audio or video production for 61.21the internet, or any other recording technology.61.22    (c) "Individual" means a human being.61.23    (d) "Person" means any individual, limited liability corporation, corporation, 61.24partnership, incorporated or unincorporated association, sole proprietorship, joint stock 61.25company, or any other legal or commercial entity.61.26    Subd. 2.Limited application.This section applies only to individuals who 61.27are performers in the recorded media industry. This section does not apply to live 61.28performances.61.29    Subd. 3.Employee-employer relationship.For the purposes of chapters 176, 61.30177, 181A, 182, and 268, an individual who provides services as a performer in the 61.31recorded media industry for a person that are in the course of the person's trade, business, 61.32profession, or occupation is an employee of that person and that person is an employer of 61.33the individual.61.34    Subd. 4.Civil remedy.An individual who has been injured by a violation of this 61.35section may bring a civil action for damages against the violator. If the individual is 62.1an employee of the violator of this section, the employee's representative, as defined in 62.2section 179.01, subdivision 5, may bring a civil action for damages against the violator on 62.3behalf of the employee. The court may award attorney fees, costs, and disbursement to an 62.4individual recovering under this section.62.5    Subd. 5.Reporting of violations.Any court finding that a violation of this section 62.6has occurred shall transmit a copy of its findings of fact and conclusions of law to the 62.7commissioner of labor and industry. The commissioner of labor and industry shall report 62.8the finding to relevant state and federal agencies, including the commissioner of commerce, 62.9the commissioner of employment and economic development, the commissioner of 62.10revenue, the federal Internal Revenue Service, and the United States Department of Labor.62.11EFFECTIVE DATE.This section is effective January 1, 2008.62.12    Sec. 18. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:62.13    Subdivision 1. Prohibited action. An employer shall not discharge, discipline, 62.14threaten, otherwise discriminate against, or penalize an employee regarding the employee's 62.15compensation, terms, conditions, location, or privileges of employment because:62.16    (a) the employee, or a person acting on behalf of an employee, in good faith, reports 62.17a violation or suspected violation of any federal or state law or rule adopted pursuant 62.18to law to an employer or to any governmental body or law enforcement official and 62.19the alleged violation involves a matter of public concern, including, but not limited to, 62.20violations that create a specific danger to the public health, safety, or environment;62.21    (b) the employee is requested by a public body or office to participate in an 62.22investigation, hearing, inquiry;62.23    (c) the employee refuses an employer's order to perform an action that the employee 62.24has an objective basis in fact to believe violates any state or federal law or rule or 62.25regulation adopted pursuant to law which violation the employee reasonably believes 62.26is a matter of public concern, including, but not limited to, violations that create a 62.27specific danger to the public health, safety, or environment, and the employee informs the 62.28employer that the order is being refused for that reason; or62.29    (d) the employee, in good faith, reports a situation in which the quality of health care 62.30services provided by a health care facility, organization, or health care provider violates a 62.31standard established by federal or state law or a professionally recognized national clinical 62.32or ethical standard and potentially places the public at risk of harm.;62.33    (e) a public employee refuses to alter, dilute, or suppress the objective representation 62.34or communication of scientific or technical data or findings, including but not limited to, 63.1findings of economic or environmental impact, or findings indicating consequences for 63.2the public's health or safety; or63.3    (f) a public employee communicates the findings of a scientific or technical study 63.4that the employee, in good faith, believes to be truthful and accurate, including reports to a 63.5governmental body or law enforcement official.63.6The disclosures protected pursuant to this section do not authorize the disclosure of trade 63.7secret information otherwise protected by law.63.8    Sec. 19. [181.9325] USE OF AUTHORITY TO INFLUENCE OR INTERFERE 63.9WITH DISCLOSURE OF INFORMATION.63.10    (a) A public employer may not directly or indirectly use or attempt to use the 63.11employer's official authority or influence for the purpose of intimidating, threatening, 63.12coercing, or attempting to intimidate, threaten, or coerce any person for the purpose of 63.13interfering with the rights described in section 181.932, or for the purpose of persuading 63.14the person to waive or disclaim any other legal rights related to the person's employment.63.15    (b) For purposes of this section, "use of official authority or influence" includes: 63.16promising to confer, or conferring, any benefit; effecting, or threatening to effect, any 63.17reprisal; or taking, or directing others to take, or recommending, processing, or approving, 63.18any personnel action, including but not limited to appointment, promotion, transfer, 63.19assignment, performance evaluation, suspension, or other disciplinary action.63.20    Sec. 20. Minnesota Statutes 2006, section 181.935, is amended to read:63.21181.935 INDIVIDUAL REMEDIES; PENALTY.63.22    (a) In addition to any remedies otherwise provided by law, an employee injured 63.23by a violation of section 
         181.932or 181.9325 may bring a civil action to recover any 63.24and all damages recoverable at law, together with costs and disbursements, including 63.25reasonable attorney's fees, and may receive such injunctive and other equitable relief as 63.26determined by the court. 63.27    (b) An employer who failed to notify, as required under section 
         181.933 or 
         181.934, 63.28an employee injured by a violation of section 
         181.932 is subject to a civil penalty of $25 63.29per day per injured employee not to exceed $750 per injured employee. 63.30    Sec. 21. [181.936] REPRISALS FOR DISCLOSURE OF IMPROPER 63.31GOVERNMENTAL ACTIVITIES; COMPLAINT PROCEDURE; PENALTIES.63.32    (a) A public employee or applicant for public employment who files a written 63.33complaint with the employee's or applicant's supervisor, manager, or the appointing 64.1power alleging actual or attempted acts of reprisal, retaliation, threats, coercion, or 64.2similar improper acts prohibited by section 181.9325, may also file a copy of the written 64.3complaint with the commissioner of labor and industry, together with a sworn statement 64.4that the contents of the written complaint are true, or are believed by the affiant to be true, 64.5under penalty of perjury. The complaint filed with the commissioner shall be filed within 64.612 months of the most recent act of reprisal complained about.64.7    (b) Any person who intentionally engages in acts of reprisal, retaliation, threats, 64.8coercion, or similar acts against a public employee or applicant for public employment 64.9for having made a protected disclosure under section 181.932, is subject to a fine not to 64.10exceed $10,000 and imprisonment in the county jail for a period not to exceed one year.64.11    (c) In addition to all other penalties provided by law, any person who intentionally 64.12engages in acts of reprisal, retaliation, threats, coercion, or similar acts against a public 64.13employee or applicant for public employment for having made a protected disclosure shall 64.14be liable in an action for damages brought against the person by the injured party. Punitive 64.15damages may be awarded by the court where the acts of the offending party are proven to 64.16be malicious. Where liability has been established, the injured party shall also be entitled 64.17to reasonable attorney fees as provided by law. However, any action for damages shall not 64.18be available to the injured party unless the injured party has first filed a complaint with the 64.19commissioner of labor and industry under paragraph (a), and the department has issued, or 64.20failed to issue, findings under section 177.275.64.21    (d) This section is not intended to prevent an appointing power, manager, or 64.22supervisor from taking, directing others to take, recommending, or approving any 64.23personnel action or from taking or failing to take a personnel action with respect to any 64.24public employee or applicant for public employment if the appointing power, manager, or 64.25supervisor reasonably believes any action or inaction is justified on the basis of evidence 64.26separate and apart from the fact that the person has made a protected disclosure under 64.27section 181.932.64.28    (e) In any civil action or administrative proceeding, once it has been demonstrated 64.29by a preponderance of evidence that an activity protected by sections 177.27, 177.275, 64.30181.932, and 181.9325 was a contributing factor in the alleged retaliation against a former, 64.31current, or prospective employee, the burden of proof shall be on the supervisor, manager, 64.32or appointing power to demonstrate by clear and convincing evidence that the alleged 64.33action would have occurred for legitimate, independent reasons even if the employee had 64.34not engaged in protected disclosures or refused an illegal order. If the supervisor, manager, 64.35or appointing power fails to meet this burden of proof in an adverse action against the 64.36employee in any administrative review, challenge, or adjudication in which retaliation 65.1has been demonstrated to be a contributing factor, the employee shall have a complete 65.2affirmative defense in the adverse action.65.3    (f) Nothing in sections 177.27, 177.275, 181.932, and 181.9325 shall be deemed to 65.4diminish the rights, privileges, or remedies of any employee under any other federal or 65.5state law or under any employment contract or collective bargaining agreement.65.6    Sec. 22. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:65.7    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who, 65.8during some part of the period of the sales representative agreement:65.9    (1) is a resident of Minnesota or maintains that person's principal place of business 65.10in Minnesota; or65.11    (2) whose geographical territory specified in the sales representative agreement 65.12includes part or all of Minnesota.65.13    (b) To be effective, any demand for arbitration under subdivision 5 must be made 65.14in writing and delivered to the principal on or before one year after the effective date of 65.15the termination of the agreement.65.16    (c) A provision in any contract between a sales representative dealing in plumbing 65.17equipment or supplies and a principal purporting to waive any provision of this act, 65.18whether by express waiver or by a provision stipulating that the contract is subject to the 65.19laws of another state, shall be void.65.20    Sec. 23. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:65.21    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by 65.22rule, prescribe minimum standards which shall be uniform, and which standards shall 65.23thereafter be effective for all new plumbing installations, including additions, extensions, 65.24alterations, and replacements connected with any water or sewage disposal system owned 65.25or operated by or for any municipality, institution, factory, office building, hotel, apartment 65.26building, or any other place of business regardless of location or the population of the 65.27city or town in which located. Notwithstanding the provisions of Minnesota Rules, part 65.284715.3130, as they apply to review of plans and specifications, the commissioner may 65.29allow plumbing construction, alteration, or extension to proceed without approval of the 65.30plans or specifications by the commissioner.65.31    Except for powers granted to the Plumbing Board, the commissioner of labor and 65.32industry shall administer the provisions of sections 
         326.37 to 
         326.45 and for such purposes 65.33may employ plumbing inspectors and other assistants.66.1    Sec. 24. Minnesota Statutes 2006, section 326.37, is amended by adding a subdivision 66.2to read:66.3    Subd. 4.Air admittance valves and water-free urinals prohibited.(a) 66.4Mechanical devices and fittings with internal moving parts are prohibited from installation 66.5in plumbing venting systems.66.6    (b) All urinals covered under the jurisdiction of the state plumbing code must have a 66.7water flush device with a volume of not more than one gallon per use.66.8    Sec. 25. [326.372] PLUMBING BOARD.66.9    Subdivision 1.Composition.(a) The Plumbing Board shall consist of 12 voting 66.10members who must be residents of the state, appointed by the governor, and confirmed 66.11by the senate. The commissioner of labor and industry or the commissioner's designee 66.12shall be a voting member. The first appointed board members shall serve an initial term 66.13of four years, except where designated otherwise. The governor shall then reappoint the 66.14current members or appoint replacement members, all or in part, to subsequent three-year 66.15terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 66.16occurring with less than six months time remaining in the term shall be filled for the 66.17existing term and the following three-year term. Of the 11 appointed members, the 66.18composition shall be as follows:66.19    (1) two members shall be municipal plumbing inspectors, one from the seven-county 66.20metro area and one from greater Minnesota;66.21    (2) one member shall be a licensed mechanical engineer;66.22    (3) two members serving an initial term of three years shall be plumbing contractors 66.23or the representative of the contractor, engaged in a commercial scope of plumbing 66.24contracting, one from the metropolitan area and one from greater Minnesota;66.25    (4) two members serving an initial term of three years shall be plumbing contractors 66.26or their representatives, engaged in the residential scope of plumbing contracting, one 66.27from the metro area and one from greater Minnesota; 66.28    (5) two members serving an initial term of two years shall be plumbing 66.29journeypersons engaged in a commercial scope of plumbing systems installation, one 66.30from the metro area and one from greater Minnesota; and66.31    (6) two members serving an initial term of two years shall be plumbing 66.32journeypersons engaged in a residential scope of plumbing systems installation, one from 66.33the metro area and one from greater Minnesota.67.1    (b) Except for the licensed mechanical engineer, all persons appointed to the 67.2council must possess a current Minnesota plumbing license and maintain the license for 67.3the duration of their term.67.4    Subd. 2.Powers.(a) The board shall have the power to:67.5    (1) elect its chair;67.6    (2) specify the plumbing code that must be followed in this state;67.7    (3) maintain a review process to make determinations regarding any complaints, 67.8code amendments, code compliance, and code clarifications filed with the board;67.9    (4) adopt rules necessary for the regulation and licensing of contractors, 67.10journeypersons, apprentices, and other persons engaged in the design, installation, and 67.11alteration of plumbing systems that would include the issuing, renewing, revoking, 67.12refusing to renew, and suspending a plumbing license, except for persons licensed under 67.13sections 326.02 to 326.15;67.14    (5) adopt rules necessary for continuing education for individuals regulated and 67.15licensed under this section; 67.16    (6) make recommendations to the commissioner regarding educational requirements 67.17for plumbing inspectors; and 67.18    (7) pay expenses deemed necessary in the performance of board duties, including: 67.19    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 67.20subdivision 2; and 67.21    (ii) per diem and expenses for its members as provided in section 15.0575, 67.22subdivision 3.67.23    (b) Requests under the review process in paragraph (a), clause (3), may originate 67.24with the municipal inspectors, the plumbing contractors or their employees, and other 67.25persons engaged in the design, installation, and alteration of plumbing systems. The board 67.26shall make its findings known to all parties and the commissioner of labor and industry 67.27within the time period specified by the board.67.28    Subd. 3.Fees and finances.The board shall submit an annual budget to the 67.29commissioner of labor and industry. The commissioner shall collect fees under section 67.30326.42 necessary for the operation and continuance of the board. The commissioner is 67.31responsible for the enforcement of the codes and licensing requirements determined by 67.32the board. The board shall recommend the fees for licenses and certification under this 67.33section. The commissioner of finance shall make a quarterly certification of the amount 67.34necessary to pay expenses required for operation of the board under subdivision 2, 67.35paragraph (a), clause (6). The certified amount is appropriated in fiscal years 2008 and 67.362009 to the board for those purposes from the fees collected under section 326.42.68.1    Subd. 4.Transfer of authority; Plumbing Board.The authority of the 68.2commissioners of health and labor and industry to adopt rules relating to plumbers is 68.3transferred to the Plumbing Board. Licenses and permits currently in effect remain in 68.4effect according to their terms unless affected by board action. Rules adopted by the 68.5commissioner of health or labor and industry remain in effect until amended or repealed 68.6by the board. The commissioner of administration may not use the authority under section 68.716B.37 to modify the transfers of authority in this act.68.8    Subd. 5.First meeting; appointments for Plumbing Board.The governor must 68.9complete the appointments required by section 326.372 no later than July 1, 2007. The 68.10commissioner of labor and industry shall convene the first meeting of the Plumbing Board 68.11no later than September 1, 2007.68.12    Sec. 26. Minnesota Statutes 2006, section 326.38, is amended to read:68.13326.38 LOCAL REGULATIONS.68.14    Any city having a system of waterworks or sewerage, or any town in which reside 68.15over 5,000 people exclusive of any statutory cities located therein, or the metropolitan 68.16airports commission, may, by ordinance, adopt local regulations providing for plumbing 68.17permits, bonds, approval of plans, and inspections of plumbing, which regulations are 68.18not in conflict with the plumbing standards on the same subject prescribed by the state 68.19commissioner of health Plumbing Board. No city or such town shall prohibit plumbers 68.20licensed by the state commissioner of healthlabor and industry from engaging in or 68.21working at the business, except cities and statutory cities which, prior to April 21, 1933, 68.22by ordinance required the licensing of plumbers. No city or town may require a license 68.23for persons performing building sewer or water service installation who have completed 68.24pipe laying training as prescribed by the commissioner of labor and industry. Any city 68.25by ordinance may prescribe regulations, reasonable standards, and inspections and grant 68.26permits to any person, firm, or corporation engaged in the business of installing water 68.27softeners, who is not licensed as a master plumber or journeyman plumber by the state 68.28commissioner of health labor and industry, to connect water softening and water filtering 68.29equipment to private residence water distribution systems, where provision has been 68.30previously made therefor and openings left for that purpose or by use of cold water 68.31connections to a domestic water heater; where it is not necessary to rearrange, make any 68.32extension or alteration of, or addition to any pipe, fixture or plumbing connected with 68.33the water system except to connect the water softener, and provided the connections so 68.34made comply with minimum standards prescribed by the state commissioner of health68.35Plumbing Board.69.1    Sec. 27. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:69.2    Subdivision 1. License required; master and journeyman plumbers.In any city 69.3now or hereafter having 5,000 or more population, according to the last federal census, 69.4and having a system of waterworks or sewerage,(a) No person, firm, or corporation shall 69.5engage in or work at the business of a master plumber or, restricted master plumber,69.6journeyman plumber, and restricted journeyman plumber unless licensed to do so by the 69.7state commissioner of healthlabor and industry. A license is not required for persons 69.8performing building sewer or water service installation who have completed pipe laying 69.9training as prescribed by the commissioner of labor and industry. A master plumber may 69.10also work as a journeyman plumber, a restricted journeyman plumber, and a restricted 69.11master plumber. A journeyman plumber may also work as a restricted journeyman 69.12plumber. Anyone not so licensed may do plumbing work which complies with the 69.13provisions of the minimum standard prescribed by the state commissioner of health69.14Plumbing Board on premises or that part of premises owned and actually occupied by the 69.15worker as a residence, unless otherwise forbidden to do so by a local ordinance.69.16    In any such city(b) No person, firm, or corporation shall engage in the business of 69.17installing plumbing nor install plumbing in connection with the dealing in and selling 69.18of plumbing material and supplies unless at all times a licensed master plumber, or in 69.19cities and towns with a population of fewer than 5,000 according to the federal census a 69.20restricted master plumber, who shall be responsible for proper installation, is in charge 69.21of the plumbing work of the person, firm, or corporation.69.22    The Department of HealthPlumbing Board shall prescribe rules, not inconsistent 69.23herewith, for the examination and licensing of plumbers.69.24    Sec. 28. Minnesota Statutes 2006, section 326.401, subdivision 2, is amended to read:69.25    Subd. 2. Journeyman exam. A plumber's apprentice who has completed four years 69.26of practical plumbing experience is eligible to take the journeyman plumbing examination. 69.27Up to 24 months of practical plumbing experience prior to registration as an apprentice 69.28may be applied to the four-year experience requirement. However, none of this practical 69.29plumbing experience may be applied if the person did not have any practical plumbing 69.30experience in the 12-month period immediately prior to registration. The commissioner69.31Plumbing Board may adopt rules to evaluate whether the person's past practical plumbing 69.32experience is applicable in preparing for the journeyman's examination. If two years 69.33after completing the training the person has not taken the examination, the four years 69.34of experience shall be forfeited.70.1    The commissioner may allow an extension of the two-year period for taking the 70.2exam for cases of hardship or other appropriate circumstances.70.3    Sec. 29. [326.402] RESTRICTED PLUMBER LICENSE.70.4    Subdivision 1.Licensure.The commissioner of labor and industry shall grant a 70.5restricted journeyman or master plumber license to an individual if:70.6    (1) the individual completes an application with information required by the 70.7commissioner of labor and industry;70.8    (2) the completed application is accompanied by a fee of $90;70.9    (3) the commissioner of labor and industry receives the completed application and 70.10fee before January 1, 2008;70.11    (4) the completed application demonstrates that the applicant has had at least two 70.12years for a restricted journeyman plumber license or four years for a restricted master 70.13plumber license of practical plumbing experience in the plumbing trade prior to the 70.14application; and70.15    (5) during the entire time for which the applicant is claiming experience in 70.16contracting for plumbing work under clause (4), the applicant was in compliance with all 70.17applicable requirements of section 326.40.70.18    Subd. 2.Use of license.A restricted master plumber and restricted journeyman 70.19plumber may engage in the plumbing trade in all areas of the state except in cities and 70.20towns with a population of more than 5,000 according to the federal census.70.21    Subd. 3.Application period.Applications for restricted master plumber and 70.22restricted journeyman plumber licenses must be submitted to the commissioner prior 70.23to January 1, 2008.70.24    Subd. 4.Renewal; use period for license.A restricted master plumber and 70.25restricted journeyman plumber license must be renewed annually for as long as that 70.26licensee engages in the plumbing trade. Failure to renew a restricted master plumber and 70.27restricted journeyman plumber license within 12 months after the expiration date will 70.28result in permanent forfeiture of the restricted master plumber and restricted journeyman 70.29plumber license.70.30    Subd. 5.Prohibition of transference.A restricted master plumber and restricted 70.31journeyman plumber license may not be transferred or sold to any other person.70.32    Subd. 6.Bond; insurance.A restricted master plumber licensee is subject to the 70.33bond and insurance requirements of section 326.40, subdivision 2, unless the exemption 70.34provided by section 326.40, subdivision 3, applies.71.1    Subd. 7.Fee.The annual fee for the restricted master plumber and restricted 71.2journeyman plumber licenses is the same fee as for a master or journeyman plumber 71.3license, respectively.71.4    Sec. 30. Minnesota Statutes 2006, section 326.405, is amended to read:71.5326.405 RECIPROCITY WITH OTHER STATES.71.6    The commissioner of health may license without examination, upon payment of the 71.7required fee, nonresident applicants who are licensed under the laws of a state having 71.8standards for licensing plumbers which the commissioner determines are substantially 71.9equivalent to the standards of this state if the other state grants similar privileges to 71.10Minnesota residents duly licensed in this state. The commissioner may issue a temporary 71.11license without examination, upon payment of the required fee, nonresident applicants 71.12who are licensed under the laws of a state having standards for licensing which the 71.13commissioner determines are substantially equivalent to the standards of this state if 71.14the other state grants similar privileges to Minnesota residents duly licensed in this 71.15state. Applicants who receive a temporary license under this section may acquire an 71.16aggregate of 24 months of experience before they have to apply and pass the licensing 71.17examination. Applicants must register with the commissioner of labor and industry and 71.18the commissioner shall set a fee for a temporary license. Applicants have five years in 71.19which to comply with this section.71.20    Sec. 31. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:71.21    Subdivision 1. Application. Applications for plumber's license shall be made to the 71.22state commissioner of health labor and industry, with fee. Unless the applicant is entitled 71.23to a renewal, the applicant shall be licensed by the state commissioner of health labor and 71.24industry only after passing a satisfactory examination administered by the examiners71.25commissioner of labor and industry, based upon rules adopted by the Plumbing Board71.26showing fitness. Examination fees for both journeyman and master plumbers shall be in 71.27an amount prescribed by the state commissioner of health labor and industry pursuant to 71.28section 
         144.122. Upon being notified that of having successfully passed the examination 71.29for original license the applicant shall submit an application, with the license fee herein 71.30provided. License fees shall be in an amount prescribed by the state commissioner of 71.31health labor and industry pursuant to section 
         144.122. Licenses shall expire and be 71.32renewed as prescribed by the commissioner pursuant to section 
         144.122. 71.33    Sec. 32. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:72.1    Subd. 2. Regulatory authority; tough person contests. All tough person contests, 72.2including amateur tough person contests, are subject to this chapter. All tough person 72.3contests are subject to American Boxing Commission (ABC) rules. Every contestant 72.4in a tough person contest shall have a physical examination prior to their bouts. Every 72.5contestant in a tough person contest shall wear padded gloves that weigh at least 12 72.6ounces. All tough person bouts are limited to two-minute rounds and a maximum of four 72.7total rounds. Officials at tough person bouts shall be licensed under this chapter.72.8    Sec. 33. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision 72.9to read:72.10    Subd. 3.Regulatory authority; similar sporting events.All mixed martial arts, 72.11ultimate fight contests, and similar sporting events are subject to this chapter.72.12    Sec. 34. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:72.13    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in 72.14the year of its issuance issued after the effective date of this act is valid for one year from 72.15the date it is issued and may be renewed by filing an application for renewal with the 72.16commission and payment of the license fee. An application for a license and renewal of a 72.17license must be on a form provided by the commission. There is a 30-day grace period 72.18during which a license may be renewed if a late filing penalty fee equal to the license fee 72.19is submitted with the regular license fee. A licensee that files late shall not conduct any 72.20activity regulated by this chapter until the commission has renewed the license. If the 72.21licensee fails to apply to the commission within the 30-day grace period, the licensee must 72.22apply for a new license under subdivision 1.72.23    Sec. 35. Minnesota Statutes 2006, section 341.321, is amended to read:72.24341.321 FEE SCHEDULE.72.25    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission 72.26is as follows: 72.27    (1) referees, $35 $45 for each initial license and each renewal; 72.28    (2) promoters, $400 for each initial license and each renewal; 72.29    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal; 72.30    (4) trainers, $35 $45 for each initial license and each renewal; 72.31    (5) ring announcers, $25 $45 for each initial license and each renewal; 72.32    (6) boxers' seconds, $25 $45 for each initial license and each renewal; 72.33    (7) timekeepers, $25 $45 for each initial license and each renewal; and73.1    (8) boxers, $35 $45 for each initial license and each renewal.;73.2    (9) managers, $45 for each initial license and each renewal; and73.3    (10) ringside physicians, $45 for each initial license and each renewal.73.4    (b) The commission shall establish and assess an event fee for each sporting event. 73.5The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as 73.6determined by the commission when the sporting event is scheduled.73.7    (c) All fees collected by the Minnesota Boxing Commission must be deposited in 73.8the Boxing Commission account in the special revenue fund. 73.9    Sec. 36. Minnesota Statutes 2006, section 541.051, is amended to read:73.10541.051 LIMITATION OF ACTION FOR DAMAGES BASED ON SERVICES 73.11OR CONSTRUCTION TO IMPROVE REAL PROPERTY.73.12    Subdivision 1. Limitation; service or construction of real property; 73.13improvements. (a) Except where fraud is involved, no action by any person in contract, 73.14tort, or otherwise to recover damages for any injury to property, real or personal, or for 73.15bodily injury or wrongful death, arising out of the defective and unsafe condition of an 73.16improvement to real property, nor any action for contribution or indemnity for damages 73.17sustained on account of the injury, shall be brought against any person performing or 73.18furnishing the design, planning, supervision, materials, or observation of construction 73.19or construction of the improvement to real property or against the owner of the real 73.20property more than two years after discovery of the injury or, in the case of an action for 73.21contribution or indemnity, accrual of the cause of action, nor, in any event shall such a 73.22cause of action accrue more than ten years after substantial completion of the construction. 73.23Date of substantial completion shall be determined by the date when construction is 73.24sufficiently completed so that the owner or the owner's representative can occupy or use 73.25the improvement for the intended purpose.73.26    (b) Notwithstanding paragraph (a), an action for contribution or indemnity arising 73.27out of the defective and unsafe condition of an improvement to real property may be 73.28brought no later than two years after the cause of action for contribution or indemnity has 73.29accrued, regardless of whether it accrued before or after the ten-year period referenced in 73.30paragraph (a).73.31    (c) For purposes of paragraph (a), a cause of action accrues upon discovery of the 73.32injury or, in the case of an action for contribution or indemnity under paragraph (b), 73.33upon payment of a final judgment, arbitration award, or settlement arising out of the 73.34defective and unsafe condition.74.1    (c) (d) Nothing in this section shall apply to actions for damages resulting from 74.2negligence in the maintenance, operation or inspection of the real property improvement 74.3against the owner or other person in possession.74.4    (d) (e) The limitations prescribed in this section do not apply to the manufacturer or 74.5supplier of any equipment or machinery installed upon real property.74.6    Subd. 2. Action allowed; limitation. Notwithstanding the provisions of subdivision 74.71, paragraph (a), in the case of an a cause of action which accrues during the ninth or tenth 74.8year after substantial completion of the construction, an action to recover damages may be 74.9brought within two years after the date on which the cause of action accrued, but in no 74.10event may such an action be brought more than 12 years after substantial completion of 74.11the construction. Nothing in this subdivision shall limit the time for bringing an action for 74.12contribution or indemnity.74.13    Subd. 3. Not construed. Nothing in this section shall be construed as extending the 74.14period prescribed by the laws of this state for the bringing of any action.74.15    Subd. 4. Applicability. For the purposes of actions based on breach of the statutory 74.16warranties set forth in section 
         327A.02, or to actions based on breach of an express written 74.17warranty, such actions shall be brought within two years of the discovery of the breach. In 74.18the case of an action under section 
         327A.05, which accrues during the ninth or tenth year 74.19after the warranty date, as defined in section 
         327A.01, subdivision 8, an action may be 74.20brought within two years of the discovery of the breach, but in no event may an action 74.21under section 
         327A.05 be brought more than 12 years after the effective warranty date. An 74.22action for contribution or indemnity related to actions described in this subdivision may be 74.23brought no later than two years after the cause of action for contribution or indemnity has 74.24accrued, based upon the time of accrual provided in subdivision 1, paragraph (c).74.25EFFECTIVE DATE.This section is effective the day following final enactment 74.26and applies to all actions pending on or commenced on or after that date.74.27    Sec. 37.  REPEALER.74.28Minnesota Statutes 2006, sections 176.042; 268.035, subdivision 9; and 326.45, are 74.29repealed.74.30EFFECTIVE DATE.Sections 176.042 and 286.035, subdivision 9, are repealed 74.31effective January 1, 2009.75.1ARTICLE 575.2HIGH PRESSURE PIPING75.3    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:75.4326.46 SUPERVISION OF HIGH PRESSURE PIPING.75.5    The Department of Labor and Industry shall supervise all high pressure piping 75.6used on all projects in this state, and may prescribe minimum standards which shall be 75.7uniform under rules adopted by the board.75.8    The department shall employ inspectors and other assistants to carry out the 75.9provisions of sections 
         326.46 to 
         326.52. 75.10    Sec. 2. Minnesota Statutes 2006, section 326.461, is amended by adding a subdivision 75.11to read:75.12    Subd. 1a.Board."Board" means the Board of High Pressure Piping Systems.75.13    Sec. 3. Minnesota Statutes 2006, section 326.47, subdivision 2, is amended to read:75.14    Subd. 2. Permissive municipal regulation. A municipality may, by ordinance, 75.15provide for the inspection of high pressure piping system materials and construction, and 75.16provide that it shall not be constructed or installed except in accordance with minimum 75.17state standards. The authority designated by the ordinance for issuing high pressure piping 75.18permits and assuring compliance with state standards must report to the Department of 75.19Labor and Industry all violations of state high pressure piping standards.75.20    A municipality may not adopt an ordinance with high pressure piping standards that 75.21does not conform to the uniform standards prescribed by the Department of Labor and 75.22Industry board. The Department of Labor and Industry board shall specify by rule the 75.23minimum qualifications for municipal inspectors.75.24    Sec. 4. Minnesota Statutes 2006, section 326.47, subdivision 6, is amended to read:75.25    Subd. 6. Filing and inspection fees. The Department of Labor and Industry 75.26must charge a filing fee set by the commissioner board under section 
         16A.1285 for all 75.27applications for permits to construct or install high pressure piping systems. The fee for 75.28inspection of high pressure piping system construction or installation shall be set by the 75.29commissioner board under section 
         16A.1285. This subdivision does not apply where a 75.30permit is issued by a municipality complying with subdivision 2. 75.31    Sec. 5. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.76.1    Subdivision 1.Composition.(a) The Board of High Pressure Piping Systems shall 76.2consist of 12 members who must be residents of the state, appointed by the governor, and 76.3confirmed by the senate. The commissioner of the Department of Labor and Industry or 76.4the commissioner's designee shall be a voting member. The first appointed board members 76.5shall serve an initial term of four years, except where designated otherwise. The governor 76.6shall then reappoint the current members or appoint replacement members, all or in part, to 76.7subsequent three-year terms. Midterm vacancies shall be filled for the remaining portion 76.8of the term. Vacancies occurring with less than six months time remaining in the term 76.9shall be filled for the existing term and the following three-year term. Of the 11 appointed 76.10members, the composition shall be as follows:76.11    (1) one member shall be a high pressure piping inspector;76.12    (2) one member shall be a licensed mechanical engineer;76.13    (3) one member shall be a representative of the piping industry;76.14    (4) four members shall be high pressure piping contractors or their representatives, 76.15engaged in the scope of high pressure piping, two from the metro area and two from 76.16greater Minnesota;76.17    (5) two members shall be high pressure piping journeypersons engaged in the scope 76.18of high pressure piping systems installation, one from the metro area and one from greater 76.19Minnesota; and76.20    (6) two members shall be representatives from utility companies in Minnesota 76.21who shall serve an initial term of two years.76.22    (b) Except for the licensed mechanical engineer and the members from utilities 76.23companies, all persons appointed to the board must possess a current license or 76.24competency credential required for contractors and persons engaged in the design, 76.25installation, alteration, and inspection of high pressure piping systems.76.26    Subd. 2.Powers.(a) The board shall have the power to:76.27    (1) elect its chair;76.28    (2) specify the high pressure piping code that must be followed in Minnesota;76.29    (3) maintain an appeals committee to make determinations regarding any complaints, 76.30code amendments, code compliance, and code clarifications filed with the board;76.31    (4) adopt rules necessary for the regulation and licensing of contractors, 76.32journeypersons, trainees, and persons engaged in the design, installation, alteration, and 76.33inspection of high pressure piping systems, except for persons licensed under sections 76.34326.02 to 326.15;76.35    (5) adopt rules necessary for continuing education for individuals regulated and 76.36licensed under this section; and77.1    (6) pay expenses deemed necessary in the performance of board duties, including: 77.2    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 77.3subdivision 2; and 77.4    (ii) per diem and expenses for its members as provided in section 15.0575, 77.5subdivision 3.77.6    (b) Complaints filed under this section may originate with high pressure piping 77.7inspectors, contractors, or their employees, or other persons engaged in the design, 77.8installation, and alteration of a high pressure piping system. The board shall make their 77.9findings known to all parties and the commissioner of the Department of Labor and 77.10Industry within the time period specified by the board.77.11    Subd. 3.Fee and finances.The board shall submit an annual budget to the 77.12commissioner of the Department of Labor and Industry. The commissioner shall collect 77.13fees under section 326.47, subdivision 6, necessary for the operation and continuance of 77.14the board. The commissioner is responsible for the enforcement of the codes and licensing 77.15requirements determined by the board. The board shall recommend the fees for licenses 77.16and certification under this section and for all high pressure piping system permits and 77.17submit the fee structure to the commissioner of labor and industry. The commissioner 77.18of finance shall make a quarterly certification of the amount necessary to pay expenses 77.19required for operation of the board under subdivision 2, paragraph (a), clause (6). The 77.20certified amount is appropriated in fiscal years 2008 and 2009 to the board for those 77.21purposes from the fees collected under section 326.50.77.22    Sec. 6. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:77.23    Subdivision 1. License required; rules; time credit. No person shall engage in 77.24or work at the business of a contracting pipefitter unless issued an individual contracting 77.25pipefitter license to do so by the Department of Labor and Industry under rules prescribed 77.26by the board. No license shall be required for repairs on existing installations. No 77.27person shall engage in or work at the business of journeyman pipefitter unless issued an 77.28individual journeyman pipefitter competency license to do so by the Department of Labor 77.29and Industry under rules prescribed by the board. A person possessing an individual 77.30contracting pipefitter competency license may also work as a journeyman pipefitter.77.31    No person, partnership, firm, or corporation shall install high pressure piping, nor 77.32install high pressure piping in connection with the dealing in and selling of high pressure 77.33pipe material and supplies, unless, at all times, a person possessing a contracting pipefitter 77.34individual competency license or a journeyman pipefitter individual competency license is 78.1responsible for the high pressure pipefitting work conducted by the person, partnership, 78.2firm, or corporation being in conformity with Minnesota Statutes and Minnesota Rules.78.3    The Department of Labor and Industry board shall prescribe rules, not inconsistent 78.4herewith, for the examination and individual competency licensing of contracting 78.5pipefitters and journeyman pipefitters and for issuance of permits by the department and 78.6municipalities for the installation of high pressure piping.78.7    An employee performing the duties of inspector for the Department of Labor and 78.8Industry in regulating pipefitting shall not receive time credit for the inspection duties 78.9when making an application for a license required by this section.78.10    Sec. 7. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:78.11    Subd. 2. High pressure pipefitting business license. Before obtaining a permit 78.12for high pressure piping work, a person, partnership, firm, or corporation must obtain or 78.13utilize a business with a high pressure piping business license.78.14    A person, partnership, firm, or corporation must have at all times as a full-time 78.15employee at least one individual holding an individual contracting pipefitter competency 78.16license. Only full-time employees who hold individual contracting pipefitter licenses 78.17are authorized to obtain high pressure piping permits in the name of the business. The 78.18individual contracting pipefitter competency license holder can be the employee of only 78.19one high pressure piping business at a time.78.20    To retain its business license without reapplication, a person, partnership, firm, or 78.21corporation holding a high pressure piping business license that ceases to employ a person 78.22holding an individual contracting pipefitter competency license shall have 60 days from 78.23the last day of employment of its previous individual contracting pipefitter competency 78.24license holder to employ another license holder. The Department of Labor and Industry 78.25must be notified no later than five days after the last day of employment of the previous 78.26license holder.78.27    No high pressure pipefitting work may be performed during any period when the 78.28high pressure pipefitting business does not have an individual contracting pipefitter 78.29competency license holder on staff. If a license holder is not employed within 60 days, 78.30the pipefitting business license shall lapse.78.31    The Department of Labor and Industry board shall prescribe by rule procedures for 78.32application for and issuance of business licenses and fees.78.33    Sec. 8. Minnesota Statutes 2006, section 326.48, is amended by adding a subdivision 78.34to read:79.1    Subd. 6.Reciprocity with other states.The commissioner may issue a temporary 79.2license without examination, upon payment of the required fee, nonresident applicants 79.3who are licensed under the laws of a state having standards for licensing which the 79.4commissioner determines are substantially equivalent to the standards of this state if 79.5the other state grants similar privileges to Minnesota residents duly licensed in this 79.6state. Applicants who receive a temporary license under this section may acquire an 79.7aggregate of 24 months of experience before they have to apply and pass the licensing 79.8examination. Applicants must register with the commissioner of labor and industry and 79.9the commissioner shall set a fee for a temporary license. Applicants have five years in 79.10which to comply with this section.79.11    Sec. 9. Minnesota Statutes 2006, section 326.50, is amended to read:79.12326.50 APPLICATION; FEES.79.13    Application for an individual contracting pipefitter competency or an individual 79.14journeyman pipefitter competency license shall be made to the Department of Labor and 79.15Industry, with fees. The applicant shall be licensed only after passing an examination79.16administered by the Department of Labor and Industry in accordance with rules adopted 79.17by the board.79.18    Sec. 10. Minnesota Statutes 2006, section 326.51, is amended to read:79.19326.51 DEPARTMENT MAY REVOKE LICENSES.79.20    The department board may revoke or suspend, for cause, any license obtained 79.21through error or fraud, or if the licensee is shown to be incompetent, or for a violation 79.22of any of its rules and regulations applicable to high pressure pipefitting work. The 79.23licensee shall have notice, in writing, enumerating the charges, and be entitled to a hearing 79.24on at least ten days' notice, with the right to produce testimony. The hearing shall be 79.25held pursuant to chapter 14. The commissioner board shall issue a final order based on 79.26testimony and the record at hearing. One year from the date of revocation application 79.27may be made for a new license.79.28    Sec. 11. Minnesota Statutes 2006, section 326.52, is amended to read:79.29326.52 DEPOSIT OF FEES.79.30    All fees received under sections 
         326.46 to 
         326.52 shall be deposited by the 79.31Department of Labor and Industry to the credit of the general fund in the state treasury. 79.32The salaries and per diem of the inspectors and examiners hereinbefore provided, their 80.1expenses, and all incidental expenses of the department and board in carrying out the 80.2provisions of sections 
         326.46 to 
         326.52 shall be paid from the appropriations made to the 80.3Department of Labor and Industry. The commissioner board by rule shall set the amount 80.4of the fees at a level that approximates, to the greatest extent possible, the salaries, per 80.5diem, and incidental expenses of the department.80.6    Sec. 12. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING 80.7SYSTEMS.80.8    The authority of the commissioner of labor and industry to adopt rules relating to 80.9high pressure piping systems is transferred to the Board of High Pressure Piping Systems. 80.10Licenses and permits currently in effect remain in effect according to their terms unless 80.11affected by board action. Rules adopted by the commissioner of labor and industry remain 80.12in effect until amended or repealed by the board. The commissioner of administration 80.13may not use the authority under Minnesota Statutes, section 16B.37, to modify transfers of 80.14authority in this act.80.15    Sec. 13. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH 80.16PRESSURE PIPING SYSTEMS.80.17    The governor must complete the appointments required by Minnesota Statutes, 80.18section 326.471, no later than July 1, 2007. The commissioner of labor and industry 80.19shall convene the first meeting of the Board of High Pressure Piping Systems no later 80.20than September 1, 2007.80.21ARTICLE 680.22IRON RANGE RESOURCES AND REHABILITATION BOARD80.23    Section 1. [270.99] HOCKEY HERITAGE SURCHARGE.80.24    Subdivision 1.Imposition.A surcharge of 25 cents is imposed on the sale of every 80.25ticket to an NCAA Division I men's hockey event in the state.80.26    Subd. 2.Collection; remittance.The surcharge imposed in this section shall be 80.27collected by all sellers of these tickets with nexus in the state of Minnesota. The seller 80.28shall report the surcharge on a return proscribed by the commissioner of revenue and 80.29shall remit the surcharge with the return.80.30    Subd. 3.Administration.Unless specifically provided otherwise in this section, the 80.31audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and 80.32administrative provisions in this chapter and chapter 289A that are applicable to taxes 80.33imposed under chapter 297A apply to the surcharge imposed under this section.81.1    Subd. 4.Deposit of revenues.The commissioner of revenue shall deposit all 81.2revenues, including penalty and interest, derived from the surcharge imposed in this 81.3section in the hockey surcharge account in the special revenue fund. The amount deposited 81.4under this section is appropriated to the Iron Range Resources and Rehabilitation Board 81.5for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame 81.6Museum provided that it continues to operate in the city. Payments under this section for 81.7the Hockey Hall of Fame Museum are in addition to and must not be used to supplant 81.8funding under section 298.28, subdivision 9c.81.9    Sec. 2. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:81.10    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby 81.11created the Iron Range Resources and Rehabilitation Board, consisting of 13ten members, 81.12five of whom are state senators appointed by the Subcommittee on Committees of the 81.13Rules Committee of the senate, and five of whom are representatives, appointed by the 81.14speaker of the house of representatives. The remaining members shall be appointed one 81.15each by the senate majority leader, the speaker of the house of representatives, and the 81.16governor and must be nonlegislators who reside in a taconite assistance area as defined in 81.17section 273.1341. The members shall be appointed in January of every odd-numbered 81.18year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and 81.19shall serve until January of the next odd-numbered year. Vacancies on the board shall be 81.20filled in the same manner as the original members were chosen. At least a majority of 81.21the legislative members of the board shall be elected from state senatorial or legislative 81.22districts in which over 50 percent of the residents reside within a taconite assistance area 81.23as defined in section 
         273.1341. All expenditures and projects made by the commissioner 81.24of Iron Range resources and rehabilitation shall be consistent with the priorities 81.25established in subdivision 8 and shall first be submitted to the Iron Range Resources and 81.26Rehabilitation Board for approval by a majority of the board of expenditures and projects 81.27for rehabilitation purposes as provided by this section, and the method, manner, and time 81.28of payment of all funds proposed to be disbursed shall be first approved or disapproved by 81.29the board. The board shall biennially make its report to the governor and the legislature on 81.30or before November 15 of each even-numbered year. The expenses of the board shall be 81.31paid by the state from the funds raised pursuant to this section. 81.32    Sec. 3. Minnesota Statutes 2006, section 298.227, is amended to read:81.33298.227 TACONITE ECONOMIC DEVELOPMENT FUND.82.1    An amount equal to that distributed pursuant to each taconite producer's taxable 82.2production and qualifying sales under section 
         298.28, subdivision 9a, shall be held by 82.3the Iron Range Resources and Rehabilitation Board in a separate taconite economic 82.4development fund for each taconite and direct reduced ore producer. Money from the 82.5fund for each producer shall be released by the commissioner after review by a joint 82.6committee consisting of an equal number of representatives of the salaried employees and 82.7the nonsalaried production and maintenance employees of that producer. The District 11 82.8director of the United States Steelworkers of America, on advice of each local employee 82.9president, shall select the employee members. In nonorganized operations, the employee 82.10committee shall be elected by the nonsalaried production and maintenance employees. 82.11The review must be completed no later than six months after the producer presents a 82.12proposal for expenditure of the funds to the committee. The funds held pursuant to this 82.13section may be released only for acquisition of plant and stationary mining equipment 82.14and facilities for the producer or for research and development in Minnesota on new 82.15mining, or taconite, iron, or steel production technology, but only if the producer provides 82.16a matching expenditure to be used for the same purpose of at least 50 percent of the 82.17distribution based on 
         14.7 cents per ton beginning with distributions in 2002. Effective for 82.18proposals for expenditures of money from the fund approved beginning the day following 82.19final enactment, the commissioner may release the funds only if the proposed expenditure 82.20is approved by a majority of the members of the Iron Range Resources and Rehabilitation 82.21Board. If a producer uses money which has been released from the fund prior to the day 82.22following final enactment to procure haulage trucks, mobile equipment, or mining shovels, 82.23and the producer removes the piece of equipment from the taconite tax relief area defined 82.24in section 
         273.134 within ten years from the date of receipt of the money from the fund, 82.25a portion of the money granted from the fund must be repaid to the taconite economic 82.26development fund. The portion of the money to be repaid is 100 percent of the grant if the 82.27equipment is removed from the taconite tax relief area within 12 months after receipt of 82.28the money from the fund, declining by ten percent for each of the subsequent nine years 82.29during which the equipment remains within the taconite tax relief area. If a taconite 82.30production facility is sold after operations at the facility had ceased, any money remaining 82.31in the fund for the former producer may be released to the purchaser of the facility on 82.32the terms otherwise applicable to the former producer under this section. If a producer 82.33fails to provide matching funds for a proposed expenditure within six months after the 82.34commissioner approves release of the funds, the funds are available for release to another 82.35producer in proportion to the distribution provided and under the conditions of this section. 82.36Any portion of the fund which is not released by the commissioner within two years of its 83.1deposit in the fund shall be divided between the taconite environmental protection fund 83.2created in section 
         298.223 and the Douglas J. Johnson economic protection trust fund 83.3created in section 
         298.292 for placement in their respective special accounts. Two-thirds 83.4of the unreleased funds shall be distributed to the taconite environmental protection fund 83.5and one-third to the Douglas J. Johnson economic protection trust fund. 83.6EFFECTIVE DATE.This section is effective for proposals for expenditures of 83.7money from the fund the day following final enactment.83.8    Sec. 4. APPROPRIATION; IRON RANGE RESOURCES AND 83.9REHABILITATION BOARD.83.10    $500,000 is appropriated from the Iron Range Resources and Rehabilitation Board 83.11fund for fiscal year 2008 for allocation in this section:83.12    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other 83.13infrastructure to a peat project in Spencer Township in Aitkin County;83.14    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham 83.15Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent 83.16endowment for the preservation;83.17    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the 83.18organization to employ youth for the construction of community centers; and83.19    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field 83.20construction.83.21    These are onetime appropriations.83.22    Sec. 5. IRRRB BUILDING.83.23    The Iron Range Resources and Rehabilitation Board office building in Eveleth, 83.24Minnesota is designated and named the Joe Begich Building and shall be signed as such 83.25at every entrance.83.26ARTICLE 783.27ELECTRICAL83.28    Section 1. Minnesota Statutes 2006, section 326.01, subdivision 6g, is amended to read:83.29    Subd. 6g. Personal direct supervision.The term "personal "Direct supervision" 83.30means that a person licensed to perform electrical work oversees and directs the electrical 83.31work performed by an unlicensed person such that:84.1    (1) the licensed person actually reviews the electrical work performed by the 84.2unlicensed person an unlicensed individual is being supervised by an individual licensed 84.3to perform the electrical work being supervised;84.4    (2) during the entire working day of the unlicensed individual, the licensed 84.5individual is physically present at the location where the unlicensed individual is 84.6preforming electrical work and immediately available to the unlicensed individual;84.7    (3) the licensed person individual is physically present and immediately available to 84.8the unlicensed person individual at all times for assistance and direction; and84.9    (4) electronic supervision does not meet the requirement of physically present and 84.10immediately available;84.11    (5) the licensed individual shall review the electrical work performed by the 84.12unlicensed individual before the electrical work is operated; and84.13    (3) (6) the licensed person individual is able to and does determine that all electrical 84.14work performed by the unlicensed person individual is performed in compliance with 84.15section 
         326.243. 84.16    The licensed person individual is responsible for the compliance with section 84.17326.243
          of all electrical work performed by the unlicensed person individual. 84.18    Sec. 2. Minnesota Statutes 2006, section 326.241, subdivision 1, is amended to read:84.19    Subdivision 1. Composition.(a) The Board of Electricity shall consist of 11 1284.20members, residents of the state, appointed by the governor of whom and confirmed by 84.21the senate. The commissioner of labor and industry or the commissioner's designee shall 84.22be a nonvoting member. The first appointed board members shall serve an initial term 84.23of four years, except where designated otherwise. The governor shall then reappoint the 84.24current members or appoint replacement members, all or in part, to subsequent three-year 84.25terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 84.26occurring with less than six months time remaining in the term shall be filled for the 84.27existing term and the following three-year term. Of the 11 appointed members, the 84.28composition shall be as follows:84.29    (1) two shall be representatives of the electrical suppliers in the rural areas of the 84.30state,84.31    (2) two shall be master electricians, who shall be contractors,84.32    (3) two journeyman electricians,84.33    (4) one registered consulting electrical engineer,84.34    (5) two power limited technicians, who shall be technology system contractors 84.35primarily engaged in the business of installing technology circuits or systems, and85.1    (6) two public members as defined by section 
         214.02.85.2    (b) Except as provided herein, membership terms, compensation of members, 85.3removal of members, the filling of membership vacancies, and fiscal year and reporting 85.4requirements shall be as provided in sections 
         214.07 to 
         214.09. The provision of staff, 85.5administrative services and office space; the review and processing of complaints; the 85.6setting of board fees; and other provisions relating to board operations shall be as provided 85.7in chapter 214. 85.8    Sec. 3. Minnesota Statutes 2006, section 326.241, subdivision 2, is amended to read:85.9    Subd. 2. Powers.(a) The board, or the complaint committee on behalf of the board 85.10where authorized by law, shall have power to:85.11    (1) Elect its own officers.85.12    (2) Engage and fix the compensation of inspectors, and hire employees. The salary 85.13of the executive secretary shall be established pursuant to chapter 43A. All agents and 85.14employees other than contract inspectors shall be in the classified service and shall be 85.15compensated pursuant to chapter 43A. All inspectors shall hold licenses as master or 85.16journeyman electricians under section 326.242, subdivision 1(1) or 2(1), and shall give 85.17bond in an amount fixed by the board, conditioned upon the faithful performance of 85.18their duties.85.19    (3) (2) Pay such other expenses as it may deem necessary in the performance of its 85.20duties, including rent, supplies, and such like.85.21    (3) Select from its members individuals to serve on any other state advisory councils, 85.22boards, or committees.85.23    (4) Enforce the provisions of sections 
         326.241 to 
         326.248, and provide, upon 85.24request, such additional voluntary inspections and reviews as it may deem appropriate. 85.25    (5) Issue, renew, refuse to renew, suspend, temporarily suspend, and revoke licenses, 85.26censure licensees, assess civil penalties, issue cease and desist orders, and seek injunctive 85.27relief and civil penalties in court as authorized by section 326.242 and other provisions of 85.28Minnesota law. Establish the committees required herein and any others deemed necessary 85.29by the board or requested by the commissioner.85.30    (6) Adopt reasonable rules to carry out its duties under sections 
         326.241 to 
         326.24885.31and to provide for the amount and collection of fees for inspection and other services. All 85.32rules shall be adopted in accordance with chapter 14. 85.33    (7) Advise the commissioner on issues related to sections 326.241 to 326.248 or as 85.34requested by the commissioner.86.1    (b) Except for the powers granted to the Electricity Board the commissioner of labor 86.2and industry shall administer the provisions of sections 326.241 to 326.248 and for such 86.3purposes may employ electrical inspectors and other assistants.86.4    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 3d, is amended to read:86.5    Subd. 3d. Power limited technician. (a) Except as otherwise provided by law, no 86.6person shall install, alter, repair, plan, lay out, or supervise the installing, altering, or 86.7repairing of electrical wiring, apparatus, or equipment for technology circuits or systems 86.8unless:86.9    (1) the person is licensed by the board as a power limited technician; and86.10    (2) the electrical work is:86.11    (i) for a licensed contractor and the person is an employee, partner, or officer of, 86.12or is the licensed contractor; or86.13    (ii) performed under the supervision of a master electrician or power limited 86.14technician also employed by the person's employer on technology circuits, systems, 86.15apparatus, equipment, or facilities owned or leased by the employer that are located within 86.16the limits of property owned or leased, operated, and maintained by the employer.86.17    (b) An applicant for a power limited technician's license shall (1) be a graduate of a 86.18four-year electrical course in an accredited college or university; or (2) have had at least 36 86.19months' experience, acceptable to the board, in planning for, laying out, supervising, and 86.20installing wiring, apparatus, or equipment for power limited systems, provided however, 86.21that the board may by rule provide for the allowance of up to 12 months (2,000 hours) 86.22of experience credit for successful completion of a two-year post high school electrical 86.23course or other technical training approved by the board.86.24    (c) The board may initially set experience requirements without rulemaking, but 86.25must adopt rules before July 1, 2004.86.26    (d) Licensees must attain eight hours of continuing education acceptable to the 86.27board every renewal period.86.28    (e) A person who has submitted an application by June 30, 2003, to take the alarm 86.29and communications examination administered by the board, and who has achieved a 86.30minimal score of 70 percent on the examination by September 30, 2003, may obtain a 86.31power limited technician license without further examination by submitting an application 86.32and a license fee of $30.86.33    (f) A company holding an alarm and communication license as of June 30, 2003, 86.34may designate one person who may obtain a power limited technician license without 87.1passing an examination administered by the board by submitting an application and 87.2license fee of $30.87.3    (g) A person who has submitted an application by September 30, 2005 December 87.431, 2007, to take the power limited technician examination administered by the board87.5department is not required to meet the qualifications set forth in paragraph (b).87.6EFFECTIVE DATE.This section is effective the day following final enactment.87.7    Sec. 5. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:87.8    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual 87.9means an individual who has not been licensed by the Board of Electricity as a Class A 87.10master electrician or as a Class A journeyman electrician. An unlicensed individual shall 87.11not perform electrical work required to be performed by a licensed individual unless the 87.12individual has first registered with the Board of Electricity as an unlicensed individual. 87.13Thereafter, an unlicensed individual shall not perform electrical work required to be 87.14performed by a licensed individual unless the work is performed under the personal direct87.15supervision of a person an individual actually licensed to perform such work and. The 87.16licensed electrician individual and unlicensed persons are individual must be employed 87.17by the same employer. Licensed persons individuals shall not permit unlicensed persons87.18individuals to perform electrical work except under the personal direct supervision of 87.19a person an individual actually licensed to perform such work. Unlicensed persons87.20individuals shall not supervise the performance of electrical work or make assignments 87.21of electrical work to unlicensed persons individuals. Except for technology circuit or 87.22system work, licensed persons individuals shall supervise no more than two unlicensed 87.23persons individuals. For technology circuit or system work, licensed persons individuals87.24shall supervise no more than three unlicensed persons individuals.87.25    (b) Notwithstanding any other provision of this section, no person individual other 87.26than a master electrician or power limited technician shall plan or lay out electrical wiring, 87.27apparatus, or equipment for light, heat, power, or other purposes, except circuits or 87.28systems exempted from personal licensing by subdivision 12, paragraph (b).87.29    (c) Contractors employing unlicensed persons performing individuals to perform87.30electrical work shall maintain records establishing compliance with this subdivision, 87.31which that shall designate identify all unlicensed persons individuals performing electrical 87.32work, except for persons working on circuits or systems exempted from personal licensing 87.33by subdivision 12, paragraph (b), and shall permit the board to examine and copy all such 87.34records as provided for in section 
         326.244, subdivision 6. 88.1    (d) When a licensed individual supervises the electrical work of an unlicensed 88.2individual, the licensed individual is responsible for ensuring that the electrical work 88.3complies with sections 326.241 to 326.248 and rules adopted.88.4    Sec. 6. Minnesota Statutes 2006, section 326.242, is amended by adding a subdivision 88.5to read:88.6    Subd. 5a.Registration of unlicensed individuals.Unlicensed individuals 88.7performing electrical work for a contractor or employer shall register with the department 88.8in the manner prescribed by the commissioner. Experience credit for electrical work 88.9performed after January 1, 2008, by an applicant for a license identified in this section 88.10shall not be granted where the applicant has not registered with or is not licensed by 88.11the department.88.12    Sec. 7. Minnesota Statutes 2006, section 326.242, subdivision 11, is amended to read:88.13    Subd. 11. Reciprocity.To the extent that any other state which provides for the 88.14licensing of electricians provides for similar action the board may grant licenses, without 88.15examination, of the same grade and class to an electrician who has been licensed by such 88.16other state for at least one year, upon payment by the applicant of the required fee and 88.17upon the board being furnished with proof that the required fee and upon the board being 88.18furnished with proof that the qualifications of the applicant are equal to the qualifications 88.19of holders of similar licenses in Minnesota. The commissioner may enter into reciprocity 88.20agreements for personal licenses with another state if approved by the board. Once 88.21approved by the board, the commissioner may issue a personal license without requiring 88.22the applicant to pass an examination provided the applicant:88.23    (a) submits an application under section 326.242;88.24    (b) pays the fee required under section 326.242; and88.25    (c) holds a valid comparable license in the state participating in the agreement.88.26    Agreements are subject to the following:88.27    (1) The parties to the agreement must administer a statewide licensing program that 88.28includes examination and qualifying experience or training comparable to Minnesota's.88.29    (2) The experience and training requirements under which an individual applicant 88.30qualified for examination in the qualifying state must be deemed equal to or greater than 88.31required for an applicant making application in Minnesota at the time the applicant 88.32acquired the license in the qualifying state.88.33    (3) The applicant must have acquired the license in the qualifying state through an 88.34examination deemed equivalent to the same class of license examination in Minnesota. 89.1A lesser class of license may be granted where the applicant has acquired a greater 89.2class of license in the qualifying state and the applicant otherwise meets the conditions 89.3of this subdivision.89.4    (4) At the time of application, the applicant must hold a valid license in the 89.5qualifying state and have held the license continuously for at least one year before making 89.6application in Minnesota.89.7    (5) An applicant is not eligible for a license under this subdivision if the applicant 89.8has failed the same or greater class of license examination in Minnesota, or if the 89.9applicant's license of the same or greater class has been revoked or suspended.89.10    (6) An applicant who has failed to renew a personal license for two years or more 89.11after its expiration is not eligible for a license under this subdivision.89.12    Sec. 8. REPEALER.89.13Minnesota Statutes 2006, sections 326.01, subdivision 4; and 326.242, subdivision 89.144, are repealed.89.15EFFECTIVE DATE.This section is effective the day following final enactment.89.16ARTICLE 889.17APPRENTICESHIP BOARD89.18    Section 1. Minnesota Statutes 2006, section 178.01, is amended to read:89.19178.01 PURPOSES.89.20    The purposes of this chapter are: to open to young people regardless of race, sex, 89.21creed, color or national origin, the opportunity to obtain training that will equip them for 89.22profitable employment and citizenship; to establish as a means to this end, a program 89.23of voluntary apprenticeship under approved apprentice agreements providing facilities 89.24for their training and guidance in the arts, skills, and crafts of industry and trade, with 89.25concurrent, supplementary instruction in related subjects; to promote employment 89.26opportunities under conditions providing adequate training and reasonable earnings; 89.27to relate the supply of skilled workers to employment demands; to establish standards 89.28for apprentice training; to establish an Apprenticeship Advisory Council Board and 89.29apprenticeship committees to assist in effectuating the purposes of this chapter; to provide 89.30for a Division of Labor Standards and Apprenticeship within the Department of Labor 89.31and Industry; to provide for reports to the legislature regarding the status of apprentice 89.32training in the state; to establish a procedure for the determination of apprentice agreement 89.33controversies; and to accomplish related ends.90.1    Sec. 2. Minnesota Statutes 2006, section 178.02, is amended to read:90.2178.02 APPRENTICESHIP ADVISORY COUNCIL BOARD.90.3    Subdivision 1. Members. The commissioner of labor and industry, hereinafter 90.4called the commissioner, shall appoint an Apprenticeship Advisory Council Board, 90.5hereinafter referred to as the council board, composed of three representatives each from 90.6employer and employee organizations, and two representatives of the general public. The 90.7director of education responsible for career and technical education or designee shall be an 90.8ex officio member of the council board and shall serve in an advisory capacity only.90.9    Subd. 2. Terms. The council board shall expire and the terms, compensation, and 90.10removal of appointed members shall be as provided in section 
         15.059, except that the 90.11council shall not expire before June 30, 2003. 90.12    Subd. 4. Duties. The council board shall meet at the call of the commissioner. It 90.13shall propose occupational classifications for apprenticeship programs; propose minimum 90.14standards for apprenticeship programs and agreements; and advise on the establishment 90.15of such policies, procedures, and rules as the commissionerboard deems necessary in 90.16implementing the intent of this chapter.90.17    Sec. 3. Minnesota Statutes 2006, section 178.03, subdivision 3, is amended to read:90.18    Subd. 3. Duties and functions. The director, under the supervision of the 90.19commissioner, and with the advice and oversight of the Apprenticeship Advisory 90.20Council Board, is authorized: to administer the provisions of this chapter; to promote 90.21apprenticeship and other forms of on the job training; to establish, in cooperation and 90.22consultation with the Apprenticeship Advisory Council Board and with the apprenticeship 90.23committees, conditions and training standards for the approval of apprenticeship programs 90.24and agreements, which conditions and standards shall in no case be lower than those 90.25prescribed by this chapter; to promote equal employment opportunity in apprenticeship 90.26and other on the job training and to establish a Minnesota plan for equal employment 90.27opportunity in apprenticeship which shall be consistent with standards established 90.28under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of 90.29registration to sponsors of approved apprenticeship programs; to act as secretary of the 90.30Apprenticeship Advisory Council Board; to approve, if of the opinion that approval is 90.31for the best interest of the apprentice, any apprenticeship agreement which meets the 90.32standards established hereunder; to terminate any apprenticeship agreement in accordance 90.33with the provisions of such agreement; to keep a record of apprenticeship agreements and 90.34their disposition; to issue certificates of completion of apprenticeship; and to perform 90.35such other duties as the commissioner deems necessary to carry out the intent of this 91.1chapter; provided, that the administration and supervision of supplementary instruction in 91.2related subjects for apprentices; coordination of instruction on a concurrent basis with 91.3job experiences, and the selection and training of teachers and coordinators for such 91.4instruction shall be the function of state and local boards responsible for vocational 91.5education. The director shall have the authority to make wage determinations applicable 91.6to the graduated schedule of wages and journeyman wage rate for apprenticeship 91.7agreements, giving consideration to the existing wage rates prevailing throughout the 91.8state, except that no wage determination by the director shall alter an existing wage 91.9provision for apprentices or journeymen that is contained in a bargaining agreement in 91.10effect between an employer and an organization of employees, nor shall the director 91.11make any determination for the beginning rate for an apprentice that is below the wage 91.12minimum established by federal or state law.91.13    Sec. 4. Minnesota Statutes 2006, section 178.041, subdivision 1, is amended to read:91.14    Subdivision 1. Rules. The commissioner may, upon receipt of the council's board's91.15proposals, accept, adopt, and issue them by rule with any modifications or amendments 91.16the commissioner finds appropriate. The commissioner may refer them back to the 91.17council board with recommendations for further study, consideration and revision. If 91.18the commissioner refuses to accept, adopt, and issue by rule or other appropriate action 91.19a board proposal, the commissioner must provide a written explanation of the reason 91.20for the refusal to the board within 30 days after the board submitted the proposal to the 91.21commissioner. Additional rules may be issued as the commissioner may deem necessary.91.22ARTICLE 991.23MISCELLANEOUS

91.24Section 1.  SUMMARY OF APPROPRIATIONS.

91.25    The amounts shown in this section summarize direct appropriations by fund made 91.26in this article.

91.2720082009Total91.28General$51,175,000$47,510,000$98,685,00091.29Total$51,175,000$47,510,000$98,685,000

91.30Sec. 2. MISCELLANEOUS APPROPRIATIONS.

91.31    The sums shown in the columns marked "Appropriations" are appropriated to the 91.32agencies and for the purposes specified in this article. The appropriations are from the 91.33general fund, or another named fund, and are available for the fiscal years indicated 92.1for each purpose. The figures "2008" and "2009" used in this article mean that the 92.2appropriations listed under them are available for the fiscal year ending June 30, 2008, or 92.3June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 92.4year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 92.5year ending June 30, 2007, are effective the day following final enactment.

92.6APPROPRIATIONS92.7Available for the Year92.8Ending June 3092.920082009

92.10Sec. 3. EXPLORE MINNESOTA TOURISM$11,669,000$12,587,000

92.11(a) To develop maximum private sector 92.12involvement in tourism, $1,000,000 the first 92.13year and $2,000,000 the second year must 92.14be matched by Explore Minnesota Tourism 92.15from nonstate sources. Each $1 of state 92.16incentive must be matched with $3 of private 92.17sector funding. Cash match is defined as 92.18revenue to the state or documented cash 92.19expenditures directly expended to support 92.20Explore Minnesota Tourism programs. Up 92.21to one-half of the private sector contribution 92.22may be in-kind or soft match. The incentive 92.23in the first year shall be based on fiscal 92.24year 2007 private sector contributions as 92.25prescribed in Laws 2005, First Special 92.26Session chapter 1, article 3, section 6. The 92.27incentive increase in the second year will 92.28be based on fiscal year 2008 private sector 92.29contributions. This incentive is ongoing.92.30(b) Funding for the marketing grants is 92.31available either year of the biennium. 92.32Unexpended grant funds from the first year 92.33are available in the second year.92.34(c) Any unexpended money from the general 92.35fund appropriations made under this section 93.1does not cancel but must be placed in a 93.2special marketing account for use by Explore 93.3Minnesota Tourism for additional marketing 93.4activities.93.5(d) $250,000 the first year and $250,000 93.6the second year are for operating costs of 93.7the Minnesota Film and TV Board. The 93.8appropriation in each year is available 93.9only upon receipt by the board of $1 in 93.10matching contributions of money or in-kind 93.11contributions from nonstate sources for every 93.12$3 provided by this appropriation.93.13(e) $750,000 is appropriated each year for a 93.14grant to the Minnesota Film and TV Board 93.15for the film jobs production program under 93.16Minnesota Statutes, section 116U.26. Of 93.17this amount, up to $25,000 each year may 93.18be used for administration. The budget base 93.19for the film jobs production program shall be 93.20$500,000 in fiscal year 2010 and $500,000 in 93.21fiscal year 2011.93.22(f) $150,000 the first year is for a onetime 93.23grant to St. Louis County to be used for 93.24feasibility studies and planning activities 93.25concerning additional uses for the St. Louis 93.26County Heritage and Arts Center at the 93.27Duluth depot. The studies and planning 93.28activities must include:93.29(1) examining the costs and benefits of 93.30relocating the Northeast Minnesota Office of 93.31Tourism to the Duluth depot;93.32(2) establishing a heritage tourism center at 93.33the Duluth depot;93.34(3) developing a multimodal operational plan 93.35integrating railroad and bus service; and94.1(4) identifying additional services and 94.2activities that would contribute toward 94.3returning the Duluth depot to being a 94.4working railroad station and cultural gateway 94.5to Duluth and St. Louis County.94.6This appropriation is available until June 30, 94.72009.

94.894.9Sec. 4. MINNESOTA HISTORICAL SOCIETY

94.10Subdivision 1.Total Appropriation$29,031,000$24,441,000

94.11The amounts that may be spent for each 94.12purpose are specified in the following 94.13subdivisions.94.14$500,000 the first year and $500,000 the 94.15second year are for increased rent costs. This 94.16amount is added to the society's base budget.

94.17Subd. 2.Education and Outreach17,307,00013,765,000

94.18(a) Of this amount, $1,700,000 the first year 94.19is a onetime appropriation for the Minnesota 94.20Sesquicentennial Commission. Of this 94.21appropriation, $750,000 is for competitive 94.22matching grants for local events and projects; 94.23$750,000 is for planning and support of 94.24statewide activities, and up to $200,000 may 94.25be used for administration.94.26(b) The Minnesota Historical Society, the 94.27State Arts Board, and Explore Minnesota 94.28Tourism may assist the commission in 94.29designing and implementing the grants 94.30program.94.31(c) The commission shall encourage private 94.32contributions to match the state funds to 94.33the greatest extent possible. Contributions 95.1received by the commission are appropriated 95.2to the commission.95.3$1,500,000 the first year is for a grant-in-aid 95.4program for county and local historical 95.5societies. The Minnesota Historical Society 95.6shall establish program guidelines and 95.7grant evaluation and award criteria for the 95.8program. Each dollar of state funds awarded 95.9to a grantee must be matched with nonstate 95.10funds on a dollar-for-dollar basis by a 95.11grantee. This is a onetime appropriation and 95.12is available until expended. 95.13$500,000 the first year is for a grant-in-aid 95.14program for county and local historical 95.15societies for the repair, restoration, and 95.16preservation of historic sites and buildings 95.17in Minnesota. The Minnesota Historical 95.18Society shall establish program guidelines 95.19and grant evaluation and award criteria for 95.20the program. This is a onetime appropriation 95.21and is available until expended.95.22(d) $60,000 each year is to offset the revenue 95.23loss from not charging fees for general tours 95.24at the Capitol. This appropriation is added to 95.25the society's base budget.95.26(e) Notwithstanding Minnesota Statutes, 95.27section 138.668, the Minnesota Historical 95.28Society may not charge a fee for its general 95.29tours at the Capitol, but may charge fees for 95.30special programs other than general tours.

95.31Subd. 3.Preservation and Access10,953,00010,271,000

95.32$500,000 the first year is to conduct a 95.33conservation survey and for restoration, 95.34treatment, moving, and storage of the 1905 95.35historic furnishings and works of art in the 96.1Minnesota State Capitol. This is a onetime 96.2appropriation and is available until June 30, 96.32009.96.4$308,000 the first year is for the preservation 96.5of battle flags. This is a onetime appropriation 96.6and is available until June 30, 2009.

96.7Subd. 4.Pass-Through Appropriations771,000405,000

96.8(a) Minnesota International Center43,00043,000

96.9(b) Minnesota Air National Guard Museum16,000-0-

96.10(c) Minnesota Military Museum234,000234,000

96.11(d) Farmamerica128,000128,000

96.12(e) Balances Forward

96.13Any unencumbered balance remaining in 96.14this subdivision the first year does not cancel 96.15but is available for the second year of the 96.16biennium.96.17$150,000 the first year is for a onetime 96.18grant to the Nicollet County Historical 96.19Society for renovation of the center exhibit 96.20gallery in the Treaty Site History Center 96.21in St. Peter, including additions to the 96.22center's infrastructure and state-of-the-art 96.23interpretive elements. This appropriation is 96.24available until the project is completed or 96.25abandoned, subject to Minnesota Statutes, 96.26section 16A.642.96.27$200,000 the first year is for a grant to 96.28the Hmong Studies Center at Concordia 96.29University in St. Paul, Minnesota, to be 96.30used for preservation of Hmong historical 96.31artifacts and documents. Any part of the 96.32appropriation not used in fiscal year 2008 is 96.33available for use in fiscal year 2009. This is 97.1a onetime appropriation and is available until 97.2expended.

97.3Subd. 5.Fund Transfer

97.4The Minnesota Historical Society may 97.5reallocate funds appropriated in and between 97.6subdivisions 2 and 3 for any program 97.7purposes.

97.8Subd. 6.Minnesota River Valley Study Group

97.9The Minnesota Historical Society in 97.10cooperation with Explore Minnesota Tourism 97.11shall establish and coordinate a Minnesota 97.12River Valley study group. The Minnesota 97.13River Valley study group shall be comprised 97.14of representatives of the Minnesota Valley 97.15Scenic Byway Alliance, the Department 97.16of Natural Resources, the Department 97.17of Transportation, the Minnesota Indian 97.18Affairs Council, the Region 6 West, Region 97.196 East, Region 8 and Region 9 Regional 97.20Development Commissions, the Minnesota 97.21Historical Society, Explore Minnesota 97.22Tourism, State Arts Board, and other 97.23interested parties. The study group must 97.24develop a plan for coordinated activities 97.25among organizations represented on the 97.26study group to enhance and promote historic 97.27sites, and historic, scenic, and natural 97.28features of the Minnesota River Valley 97.29area. Study topics shall include, but are 97.30not limited to, historic sites related to the 97.31Dakota Conflict of 1862 and the state and 97.32local preparations for the sesquicentennial of 97.33this event. The Minnesota Historical Society 97.34and Explore Minnesota Tourism shall report 97.35on the findings and recommendations of 98.1the Minnesota River Valley study group to 98.2the standing committees of the house of 98.3representatives and senate with jurisdiction 98.4over historic sites and tourism by March 1, 98.52008. The Minnesota River Valley study 98.6group shall serve without compensation.

98.7Sec. 5. BOARD OF THE ARTS

98.8Subdivision 1.Total Appropriation$9,975,000$9,982,000

98.9The amounts that may be spent for each 98.10purpose are specified in the following 98.11subdivisions.

98.12Subd. 2.Operations and Services637,000644,000

98.13Subd. 3.Grants Programs6,452,0006,452,000

98.14The base budget for the grants program 98.15shall be $5,924,000 in fiscal year 2010 and 98.16$5,924,000 in fiscal year 2011.

98.17Subd. 4.Regional Arts Councils2,886,0002,886,000

98.18The base budget for the regional arts councils 98.19shall be $2,539,000 in fiscal year 2010 and 98.20$2,539,000 in fiscal year 2011.

98.2198.22Sec. 6. MINNESOTA HUMANITIES COMMISSION$500,000$500,000

98.23Of this amount, ten percent each year is 98.24for lifelong learning programs in greater 98.25Minnesota communities that do not 98.26receive financial support from other large 98.27educational institutions. The base budget 98.28for the Minnesota Humanities Commission 98.29is $500,000 each year in the 2010-2011 98.30biennium.98.31    Sec. 7. Minnesota Statutes 2006, section 190.096, is amended to read:98.32190.096 BATTLE FLAGS; REPAIR.99.1    Subdivision 1. Authority to repair. Notwithstanding the provisions of Minnesota 99.2Statutes 1961, chapters 16 and 43, the adjutant general or the Minnesota Historical 99.3Society may contract for the repair, restoration, and preservation of regimental battle flags, 99.4standards, and guidons with persons or corporations skilled in such repair, restoration, and 99.5preservation, upon terms or conditions the adjutant general or the Minnesota Historical 99.6Society deems proper, subject to the approval of the commissioner of administration.99.7    Subd. 2. Surrender. Notwithstanding the provisions of this section or section 99.8190.09
         , the adjutant general or the Minnesota Historical Society may, for the purposes 99.9of this section, surrender the immediate custody and control of regimental battle flags, 99.10standards, and guidons under conditions and safeguards the adjutant general or the 99.11Minnesota Historical Society deems necessary and proper, for such time as is reasonably 99.12necessary for their restoration, after which they shall at once be again properly stored 99.13or displayed. The adjutant general or the Minnesota Historical Society shall provide 99.14adequate storage and display space for flags, standards, and guidons which have been 99.15repaired and restored. 99.16    Subd. 3.Battle flags; care and control.(a) The flags and colors carried by 99.17Minnesota troops in the Civil War, Indian Wars, and the Spanish-American War shall be 99.18preserved under the care and control of the Minnesota Historical Society. They shall be 99.19suitably encased and marked, and, so far as the historical society may deem it consistent 99.20with the safety of the flags and colors, they shall be publicly displayed in the capitol.99.21    (b) The flags and colors carried by Minnesota troops in subsequent wars shall be 99.22preserved under the care and control of the adjutant general. They shall be suitably 99.23encased and marked, and, so far as the adjutant general may deem it consistent with the 99.24safety of the flags and colors, shall be publicly displayed.99.25ARTICLE 1099.26HOUSING

99.27Section 1. SUMMARY OF APPROPRIATIONS.

99.28    The amounts shown in this section summarize direct appropriations, by fund, made 99.29in this article.

99.3020082009Total99.31General$ 67,896,000$ 49,040,000$116,936,00099.32TANF$3,075,000$3,075,000$6,150,00099.33Total$ 70,971,000$ 52,115,000$123,086,000

99.34Sec. 2. HOUSING.

100.1    The sums shown in the columns marked "Appropriations" are appropriated to the 100.2agencies and for the purposes specified. The appropriations are from the general fund, or 100.3another named fund, and are available for the fiscal years indicated for each purpose. The 100.4figures "2008" and "2009" used in this act mean that the appropriations listed under them 100.5are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The 100.6first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is 100.7fiscal years 2008 and 2009. Appropriations for the fiscal year ending June 30, 2007, are 100.8effective the day following final enactment.

100.9APPROPRIATIONS100.10Available for the Year100.11Ending June 30100.1220082009

100.13Sec. 3. HOUSING FINANCE AGENCY

100.14Subdivision 1.Total Appropriation$ 70,971,000$ 52,115,000

100.15Appropriations by Fund100.1620082009100.17General 67,896,000 49,040,000100.18TANF3,075,0003,075,000

100.19This appropriation is for transfer to the 100.20housing development fund. The amounts 100.21that may be spent from this appropriation 100.22for certain programs are specified in the 100.23following subdivisions. Except as otherwise 100.24indicated, this transfer is part of the agency's 100.25permanent budget base.100.26Of this amount, $3,075,000 the first year 100.27and $3,075,000 the second year are onetime 100.28appropriations from the state's federal TANF 100.29block grant under Title I of Public Law 100.30Number 104-193 to the commissioner of 100.31human services, to reimburse the housing 100.32development fund for assistance under 100.33the programs for families receiving TANF 100.34assistance under the MFIP program. The 100.35commissioner of human services shall make 100.36monthly reimbursements to the housing 101.1development fund. The commissioner 101.2of human services shall not make any 101.3reimbursement which the commissioner 101.4determines would be subject to a penalty 101.5under Code of Federal Regulations, section 101.6262.1. If the appropriation in either year is 101.7insufficient, the appropriation for the other 101.8year is available.

101.9101.10Subd. 2.Economic Development and Housing Challenge

101.11(a) $21,308,000 the first year and $9,622,000 101.12the second year are for the economic 101.13development and housing challenge program 101.14under Minnesota Statutes, section 462A.33, 101.15for housing that:101.16(i) conserves energy and utilizes sustainable, 101.17healthy building materials;101.18(ii) preserves sensitive natural areas and 101.19open spaces and minimizes the need for new 101.20infrastructure; 101.21(iii) is accessible to jobs and services through 101.22integration with transportation or transit 101.23systems; and101.24(iv) expands the mix of housing choices in 101.25a community by diversifying the levels of 101.26housing affordability. 101.27The agency may fund demonstration projects 101.28that have unique approaches to achieving the 101.29housing described above. 101.30(b) The base is reduced by $3,407,000 each 101.31year in fiscal year 2010 and fiscal year 2011.

101.32Subd. 3.Housing Trust Fund

101.33$15,195,000 the first year and $11,945,000 101.34the second year are for the housing trust fund 102.1account created under Minnesota Statutes, 102.2section 462A.201, for the purposes of that 102.3section. Of this amount, $1,500,000 the first 102.4year and $1,500,000 in the second year is a 102.5onetime appropriation from the state's federal 102.6TANF block grant. The base is reduced by 102.7$3,390,000 each year in fiscal year 2010 and 102.8fiscal year 2011.

102.9102.10Subd. 4.Bridges Rental Assistance for Mentally Ill

102.11$3,400,000 the first year and $3,400,000 102.12the second year are for a rental housing 102.13assistance program for persons with a mental 102.14illness or families with an adult member with 102.15a mental illness under Minnesota Statutes, 102.16section 462A.2097.

102.17Subd. 5.Family Homeless Prevention

102.18$7,565,000 the first year and $7,565,000 102.19the second year are for family homeless 102.20prevention and assistance programs under 102.21Minnesota Statutes, section 462A.204. Of 102.22this amount, $1,575,000 in the first year and 102.23$1,575,000 in the second year is a onetime 102.24appropriation from the state's federal TANF 102.25block grant. The general fund base is reduced 102.26by $2,225,000 each year in fiscal year 2010 102.27and fiscal year 2011.

102.28Subd. 6.Home Ownership Assistance Fund

102.29$1,885,000 the first year and $1,885,000 102.30the second year are for the home ownership 102.31assistance program under Minnesota 102.32Statutes, section 462A.21, subdivision 8. 102.33The base is reduced by $1,000,000 each year 102.34in fiscal year 2010 and fiscal year 2011.

102.35Subd. 7.Affordable Rental Investment Fund

103.1$11,496,000 the first year and $8,996,000 103.2the second year are for the affordable rental 103.3investment fund program under Minnesota 103.4Statutes, section 462A.21, subdivision 8b. 103.5Of this amount, $2,500,000 the first year is a 103.6onetime appropriation.103.7This appropriation is to finance the 103.8acquisition, rehabilitation, and debt 103.9restructuring of federally assisted rental 103.10property and for making equity take-out loans 103.11under Minnesota Statutes, section 462A.05, 103.12subdivision 39. The owner of the federally 103.13assisted rental property must agree to 103.14participate in the applicable federally assisted 103.15housing program and to extend any existing 103.16low-income affordability restrictions on the 103.17housing for the maximum term permitted. 103.18The owner must also enter into an agreement 103.19that gives local units of government, 103.20housing and redevelopment authorities, 103.21and nonprofit housing organizations the 103.22right of first refusal if the rental property 103.23is offered for sale. Priority must be given 103.24among comparable federally assisted rental 103.25properties to properties with the longest 103.26remaining term under an agreement for 103.27federal rental assistance. Priority must also 103.28be given among comparable rental housing 103.29developments to developments that are or 103.30will be owned by local government units, a 103.31housing and redevelopment authority, or a 103.32nonprofit housing organization.103.33This appropriation may also be used to 103.34finance the acquisition, rehabilitation, and 103.35debt restructuring of existing supportive 103.36housing properties. For purposes of this 104.1subdivision, "supportive housing" means 104.2affordable rental housing with links to 104.3services necessary for individuals, youth, and 104.4families with children to maintain housing 104.5stability.104.6Of this amount, $2,500,000 is appropriated 104.7for the purposes of financing the 104.8rehabilitation and operating costs to preserve 104.9public housing. For purposes of this 104.10subdivision, "public housing" is housing for 104.11low-income persons and households financed 104.12by the federal government and owned and 104.13operated by public housing authorities and 104.14agencies. Eligible public housing authorities 104.15must have a public housing assessment 104.16system rating of standard or above. Priority 104.17among comparable proposals must be given 104.18to proposals that maximize federal or local 104.19resources to finance the capital and operating 104.20costs.

104.21104.22Subd. 8.Housing Rehabilitation and Accessibility

104.23$5,657,000 the first year and $4,287,000 the 104.24second year are for the housing rehabilitation 104.25and accessibility program under Minnesota 104.26Statutes, section 462A.05, subdivisions 14a 104.27and 15a. The base is reduced by $629,000 104.28each year in fiscal year 2010 and fiscal year 104.292011.

104.30Subd. 9.Urban Indian Housing Program

104.31$187,000 the first year and $187,000 the 104.32second year are for the urban Indian housing 104.33program under Minnesota Statutes, section 104.34462A.07, subdivision 15. The base is 105.1reduced by $52,000 each year in fiscal year 105.22010 and fiscal year 2011.

105.3Subd. 10.Tribal Indian Housing Program

105.4$1,683,000 the first year and $1,683,000 105.5the second year are for the tribal Indian 105.6housing program under Minnesota Statutes, 105.7section 462A.07, subdivision 14. The base is 105.8reduced by $468,000 each year in fiscal year 105.92010 and fiscal year 2011.

105.10105.11Subd. 11.Home Ownership Education, Counseling, and Training

105.12$2,135,000 the first year and $2,135,000 105.13the second year are appropriated for the 105.14home ownership education, counseling, and 105.15training program under Minnesota Statutes, 105.16section 462A.209. The base is reduced by 105.17$1,460,000 each year in fiscal year 2010 and 105.18fiscal year 2011. Of this amount, $630,000 105.19the first year is for:105.20(1) foreclosure prevention and assistance 105.21activities in communities that have mortgage 105.22foreclosure rates that exceed the statewide 105.23average foreclosure rate for the most recent 105.24quarter for which data is available; and105.25(2) home buyer education and counseling 105.26activities by organizations that have 105.27experience working with emerging markets 105.28or partner with organizations with experience 105.29working with emerging markets and that have 105.30demonstrated a commitment to increasing the 105.31homeownership rate of emerging markets.

105.32Subd. 12.Capacity Building Grants

105.33$820,000 for the biennium is for capacity 105.34building grants under Minnesota Statutes 106.1section 462A.21, subdivision 3b. Of this 106.2amount, $140,000 is for continuum of 106.3care planning in greater Minnesota. This 106.4appropriation is the agency's base budget for 106.5this program.

106.6Subd. 13.Grant for Hennepin County

106.7$50,000 is a onetime appropriation in the 106.8first year for a grant to Hennepin County 106.9for collaboration with the Center for Urban 106.10and Regional Affairs at the University 106.11of Minnesota for the development of a 106.12predictive, data-driven model that can be 106.13used to identify at-risk properties in order to 106.14target resources to prevent foreclosure.106.15    Sec. 4. Minnesota Statutes 2006, section 462A.21, subdivision 8b, is amended to read:106.16    Subd. 8b. Family rental housing. It may establish a family rental housing 106.17assistance program to provide loans or direct rental subsidies for housing for families 106.18with incomes of up to 80 percent of state median income, or to provide grants for the 106.19operating cost of public housing. Priority must be given to those developments with 106.20resident families with the lowest income. The development may be financed by the 106.21agency or other public or private lenders. Direct rental subsidies must be administered by 106.22the agency for the benefit of eligible families. Financial assistance provided under this 106.23subdivision to recipients of aid to families with dependent children must be in the form 106.24of vendor payments whenever possible. Loans, grants, and direct rental subsidies under 106.25this subdivision may be made only with specific appropriations by the legislature. The 106.26limitations on eligible mortgagors contained in section 
         462A.03, subdivision 13, do not 106.27apply to loans for the rehabilitation of existing housing under this subdivision. 106.28    Sec. 5. Minnesota Statutes 2006, section 462A.33, subdivision 3, is amended to read:106.29    Subd. 3. Contribution requirement. Fifty percent of the funds appropriated for 106.30this section must be used for challenge grants or loans which meet the requirements of this 106.31subdivision for housing proposals with financial or in-kind contributions from nonstate 106.32resources that reduce the need for deferred loan or grant funds from state resources. These106.33Challenge grants or loans must be used for economically viable homeownership or rental 106.34housing proposals that:107.1    (1) include a financial or in-kind contribution from an area employer and either a unit 107.2of local government or a private philanthropic, religious, or charitable organization; and107.3    (2) address the housing needs of the local work force.107.4    Among comparable proposals, preference must be given to proposals that include 107.5contributions from nonstate resources for the greatest portion of the total development 107.6cost. Comparable proposals with contributions from local units of government or private 107.7philanthropic, religious, or charitable organizations must be given preference in awarding 107.8grants or loans.107.9    For the purpose of this subdivision, an employer a contribution may consist partially 107.10or wholly of the premium paid for federal housing tax credits.107.11    Preference for grants and loans shall also be given to comparable proposals that 107.12include a financial or in-kind contribution from a unit of local government, an area 107.13employer, and a private philanthropic, religious, or charitable organization.107.14    Sec. 6. Minnesota Statutes 2006, section 469.021, is amended to read:107.15469.021 PREFERENCES.107.16    As between applicants equally in need and eligible for occupancy of a dwelling 107.17and at the rent involved, preference shall be given to disabled veterans, persons with 107.18disabilities, and families of service persons who died in service and to families of veterans. 107.19In admitting families of low income to dwelling accommodations in any housing project an 107.20authority shall, as far as is reasonably practicable, give consideration to applications from 107.21families to which aid for dependent children is payable receiving assistance under chapter 107.22256J, and to resident families to whom public assistance or supplemental security income 107.23for the aged, blind, and disabled is payable, when those families are otherwise eligible.107.24    Sec. 7. MORTGAGE FORECLOSURE REDUCTION.107.25    The commissioner of the Minnesota Housing Finance Agency, in consultation 107.26with the commissioner of commerce, the attorney general, the Minnesota Mortgage 107.27Bankers' Association, Legal Services of Minnesota, the Minnesota Mortgage Foreclosure 107.28Prevention Association, and the Minnesota Sheriffs' Association shall evaluate the 107.29provisions of Minnesota Statutes, sections 580.04 and 580.041, to determine if corrective 107.30actions could be taken by the 2008 legislature to reduce mortgage foreclosures in the state.