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 1.5accounts, assessments, and fees; providing penalties;amending Minnesota 1.6Statutes 2006, sections 13.7931, by adding a subdivision; 116J.401, by adding 1.7a subdivision; 116J.551, subdivision 1; 116J.554, subdivision 2; 116J.555, 1.8subdivision 1; 116J.575, subdivisions 1, 1a; 116J.966, subdivision 1; 116L.01, by 1.9adding a subdivision; 116L.04, subdivision 1a; 116L.17, subdivision 1; 116L.20, 1.10subdivision 1; 116L.666, subdivision 1; 116M.18, subdivision 6a; 177.27, 1.11subdivisions 1, 4, 5, 8, 9, 10, by adding a subdivision; 177.28, subdivision 1; 1.12177.30; 177.43, subdivisions 3, 4, 6, by adding a subdivision; 178.01; 178.02; 1.13178.03, subdivision 3; 178.041, subdivision 1; 179A.04, subdivision 3; 181.932, 1.14subdivision 1; 181.935; 182.65, subdivision 2; 190.096; 268.085, subdivision 1.153; 268.196, by adding a subdivision; 268A.01, subdivision 13, by adding a 1.16subdivision; 268A.085, subdivision 1; 268A.15, by adding a subdivision; 298.22, 1.17subdivision 2; 298.227; 325E.37, subdivision 6; 326.01, subdivision 6g; 326.241, 1.18subdivisions 1, 2; 326.242, subdivisions 3d, 5, 11, by adding a subdivision; 1.19326.37, subdivision 1, by adding a subdivision; 326.38; 326.40, subdivision 1; 1.20326.401, subdivision 2; 326.405; 326.42, subdivision 1; 326.46; 326.461, by 1.21adding a subdivision; 326.47, subdivisions 2, 6; 326.48, subdivisions 1, 2, by 1.22adding a subdivision; 326.50; 326.51; 326.52; 341.28, subdivision 2, by adding a 1.23subdivision; 341.32, subdivision 2; 341.321; 462.39, by adding a subdivision; 1.24462A.21, subdivision 8b; 462A.33, subdivision 3; 469.021; proposing coding 1.25for new law in Minnesota Statutes, chapters 116J; 116O; 154; 177; 179; 181; 1.26181A; 182; 325E; 326; repealing Minnesota Statutes 2006, sections 16C.18, 1.27subdivision 2; 176.042; 268.035, subdivision 9; 326.01, subdivision 4; 326.242, 1.28subdivision 4; 326.45.1.29BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.30ARTICLE 11.31JOBS, ECONOMIC DEVELOPMENT, HOUSING AND MINNESOTA 1.32HERITAGE APPROPRIATIONS SUMMARY

1.33Section 1. SUMMARY.

2.1    The amounts shown in this section summarize direct appropriations, by fund, made 2.2in this act.

2.320082009Total2.4General$213,756,000$156,634,000$370,390,0002.5Workforce Development15,510,00015,526,00031,036,0002.6Remediation700,000700,0001,400,0002.72.8State Government Special Revenue1,877,0001,925,0003,802,0002.9Workers' Compensation 23,379,00023,763,00047,142,0002.10TANF3,075,0003,075,0006,150,0002.11Total$258,297,000$201,623,000$459,920,000

2.12ARTICLE 22.13JOBS AND ECONOMIC DEVELOPMENT2.14    Section 1. SUMMARY OF APPROPRIATIONS.

2.1520082009Total2.16General$94,685,000$60,084,000$154,769,0002.17Workforce Development15,510,00015,526,00031,036,0002.18Remediation700,000700,0001,400,0002.192.20State Government Special Revenue1,877,0001,925,0003,802,0002.21Workers' Compensation 23,379,00023,763,00047,142,0002.22Total$136,151,000$101,998,000$238,149,000

2.23Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

2.24    The sums shown in the columns marked "Appropriations" are appropriated to the 2.25agencies and for the purposes specified in this article. The appropriations are from the 2.26general fund, or another named fund, and are available for the fiscal years indicated 2.27for each purpose. The figures "2008" and "2009" used in this article mean that the 2.28appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.29June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.30year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 2.31year ending June 30, 2007, are effective the day following final enactment.

2.32APPROPRIATIONS2.33Available for the Year2.34Ending June 302.3520082009

3.13.2Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

3.3Subdivision 1.Total Appropriation$101,467,000$66,589,000

3.4Appropriations by Fund3.5200820093.6General86,022,00051,144,0003.7Remediation700,000700,0003.83.9Workforce Development14,745,00014,745,000

3.10The amounts that may be spent for each 3.11purpose are specified in the following 3.12subdivisions.

3.133.14Subd. 2.Business and Community Development48,938,00014,372,000

3.15Appropriations by Fund3.16General48,238,00013,672,0003.17Remediation700,000700,000

3.18(a)(1) $1,100,000 is for a grant under 3.19Minnesota Statutes, section 116J.421, 3.20to the Rural Policy and Development 3.21Center at St. Peter, Minnesota. The grant 3.22shall be used for research and policy 3.23analysis on emerging economic and social 3.24issues in rural Minnesota, to serve as a 3.25policy resource center for rural Minnesota 3.26communities, to encourage collaboration 3.27across higher education institutions, to 3.28provide interdisciplinary team approaches 3.29to research and problem-solving in rural 3.30communities, and to administer overall 3.31operations of the center. 3.32(2) The grant shall be provided upon the 3.33condition that each state-appropriated 3.34dollar be matched with a nonstate dollar. 3.35Acceptable matching funds are nonstate 3.36contributions that the center has received and 4.1have not been used to match previous state 4.2grants. Any funds not spent the first year are 4.3available the second year. 4.4(b) $200,000 each year is for a grant to 4.5WomenVenture for women's business 4.6development programs.4.7(c) $500,000 the first year is for a grant to 4.8University Enterprise Laboratories (UEL) 4.9for its direct and indirect expenses to support 4.10efforts to encourage the growth of early-stage 4.11and emerging bioscience companies. UEL 4.12must provide a report by June 30 each year 4.13to the commissioner on the expenditures 4.14until the appropriation is expended. This is a 4.15onetime appropriation and is available until 4.16expended.4.17(d) $2,180,000 the first year is for grants 4.18under Minnesota Statutes, section 116J.571, 4.19for the redevelopment grant program. This is 4.20a onetime appropriation.4.21(e) $100,000 each year is to the Public 4.22Facilities Authority for the small community 4.23wastewater treatment program under 4.24Minnesota Statutes, chapter 446A.4.25(f) $510,000 the first year is for the urban 4.26initiative program under Minnesota Statutes, 4.27chapter 116M, of which, $255,000 is for 4.28a grant to the Metropolitan Economic 4.29Development Association for continuing 4.30minority business development programs 4.31in the metropolitan area. This is a onetime 4.32appropriation.4.33(g) $85,000 each year is for a grant to the 4.34Minnesota Inventors Congress, of which 4.35$10,000 must be used for youth inventors.5.1(h) $151,000 the first year is for a grant to the 5.2city of Faribault to design, construct, furnish, 5.3and equip renovations to accommodate 5.4handicapped accessibility at the Paradise 5.5Center for the Arts.5.6(i) $3,000,000 the first year is for loans 5.7authorized under Minnesota Statutes, section 5.8116J.417. This appropriation is available 5.9until expended.5.10(j) $1,000,000 each year is to Minnesota 5.11Technology, Inc. for the small business 5.12growth acceleration program established 5.13under Minnesota Statutes, section 116O.115. 5.14This is a onetime appropriation.5.15(k) $350,000 the first year is for a grant to 5.16the city of Northome for the construction 5.17of a new municipal building to replace the 5.18structures damaged by fire on July 22, 2006. 5.19This appropriation is available when the 5.20commissioner determines that a sufficient 5.21match is available from nonstate sources to 5.22complete the project.5.23(l) $325,000 each year is for a technology 5.24and commercialization unit established 5.25under article 3, section 33. This is a onetime 5.26appropriation.5.27(m) $500,000 in the first year is for a 5.28grant to the city of Worthington for an 5.29agricultural-based bioscience training and 5.30testing center. Funds appropriated under this 5.31section must be used to provide a training 5.32and testing facility for incubator firms 5.33developing new agricultural processes and 5.34products. This is a onetime appropriation 5.35and is available until expended.6.1(n) $2,200,000 in the first year is for a grant 6.2to BioBusiness Alliance of Minnesota for 6.3bioscience business development programs 6.4to promote and position the state as a global 6.5leader in bioscience business activities. 6.6These funds may be used for:6.7(1) completion and periodic updating of 6.8a statewide bioscience business industry 6.9assessment of business technology 6.10enterprises and Minnesota's competitive 6.11position employing annual updates to federal 6.12industry classification data;6.13(2) long-term strategic planning that includes 6.14projections of market changes resulting 6.15from developments in biotechnology and the 6.16development of 20-year goals, strategies, and 6.17identified objectives for renewable energy, 6.18medical devices, biopharma, and biologics 6.19business development in Minnesota;6.20(3) the design and construction of a 6.21Minnesota focused bioscience business 6.22model to test competing strategies and 6.23scenarios, evaluate options, and forecast 6.24outcomes; and6.25(4) creation of a bioscience business 6.26resources network that includes development 6.27of a statewide bioscience business economic 6.28development framework to encourage 6.29bioscience business development and 6.30encourage spin-off activities, attract 6.31bioscience business location or expansion in 6.32Minnesota, and establish a local capability to 6.33support strategic system level planning for 6.34industry, government, and academia.7.1This appropriation is available until June 30, 7.22009.7.3(o) $325,000 is for a grant to the Walker 7.4Area Community Center, Inc., to construct, 7.5furnish, and equip the Walker Area 7.6Community Center. This appropriation is 7.7not available until the commissioner has 7.8determined that an amount sufficient to 7.9complete the project has been committed 7.10from nonstate sources.7.11(p) $120,000 the first year is for a grant 7.12to the Pine Island Economic Development 7.13Authority for predesign to upgrade and 7.14extend utilities to serve Elk Run Bioscience 7.15Research Park and The Falls - Healthy 7.16Living By Nature, an integrated medicine 7.17facility. This is a onetime appropriation and 7.18is available until expended.7.19(q) $300,000 the first year is for a grant 7.20to Thomson Township for infrastructure 7.21improvements for the industrial park. This is 7.22a onetime appropriation.7.23(r) $75,000 the first year for a grant to 7.24Le Sueur County for the cost of cleaning 7.25debris from lakes in Le Sueur County, 7.26caused by the August 24, 2006, tornado in 7.27southern Le Sueur County. This is a onetime 7.28appropriation.7.29(s) $3,000,000 the second year is for 7.30bioscience business development and 7.31commercialization grants. The commissioner 7.32shall designate an evaluation team to accept 7.33grant applications, review and evaluate 7.34grant proposals, and select up to five grant 7.35proposals to receive funding each year. 8.1The evaluation team shall be comprised 8.2of not more than 12 members including: 8.3the commissioner or the commissioner's 8.4designee; representatives of bioscience 8.5businesses; public and private institutions 8.6of higher education; private investment 8.7companies; a nonprofit entity that qualifies as 8.8a 501(c)6 under the Internal Revenue Code 8.9and is a trade association representing the 8.10life sciences industry; and a bio business 8.11alliance that qualifies as a 501(c)3 under the 8.12Internal Revenue Code. The criteria used 8.13by the evaluation team in evaluating grant 8.14proposals must include, but is not limited 8.15to: the potential to create and sustain jobs 8.16within the state of Minnesota; the potential 8.17for long-term business activity, growth, 8.18and expansion in Minnesota; the level of 8.19technological maturity; the potential to attract 8.20private investment; and the availability and 8.21readiness of markets. The commissioner 8.22must report to the standing committees of 8.23the house of representatives and the senate 8.24having jurisdiction over bioscience and 8.25technology issues by February 1 each year 8.26on the number, type, and amounts of grants 8.27awarded and the activities of the grant 8.28recipients. This is a onetime appropriation 8.29and is available until expended.8.30(t) $1,500,000 the first year is for the urban 8.31challenge grant program under Minnesota 8.32Statutes, section 116M.18, of which 8.33$1,000,000 is for a grant to the Neighborhood 8.34Development Center for assistance necessary 8.35to retain minority business enterprises 9.1at the Global Market. This is a onetime 9.2appropriation.9.3(u) $375,000 each year is to develop and 9.4operate a bioscience business marketing 9.5program to market Minneota bioscience 9.6businesses and business opportunities 9.7to other states and other countries. The 9.8bioscience business marketing program must 9.9emphasize bioscience business location and 9.10expansion opportunities in communities 9.11outside of the seven-county metropolitan 9.12area as defined in Minnesota Statutes, 9.13section 473.121, subdivision 2, that have 9.14established collaborative plans among two 9.15or more municipal units for bioscience 9.16business activities, and that are within 15 9.17miles of a four-year, baccalaureate degree 9.18granting institution or a two-year technical 9.19or community college that offers bioscience 9.20curricula. The commissioner must report 9.21to the committees of the senate and house 9.22of representatives having jurisdiction 9.23over bioscience and technology issues by 9.24February 1 of each year on the expenditures 9.25of these funds and the promotional activities 9.26undertaken to market the Minnesota 9.27bioscience industry to persons outside of the 9.28state. This is a onetime appropriation and is 9.29available until expended.9.30(v) $225,000 each year is for the purposes 9.31of the nanotechnology development fund 9.32program (NDF) established in section 12, for 9.33grants to promote increased use of advanced 9.34instrumentation for nanomaterials analysis, 9.35to be awarded on a one-to-one matching basis 10.1to qualifying Minnesota small businesses. 10.2This is a onetime appropriation.10.3(w) $50,000 the first year is for a contract 10.4with a public higher education institution 10.5in Minnesota jointly entered into with the 10.6Center for Rural Development to study the 10.7needs of the renewable energy economy for 10.8trained employees and the training required 10.9for those employees. The study must include 10.10extensive consultation and involvement of 10.11representatives of the renewable energy 10.12industry, environmental interests, labor, the 10.13University of Minnesota, and the Minnesota 10.14State Colleges and Universities. The 10.15commissioner shall report the results of the 10.16study to the chairs of the finance divisions 10.17of the legislature with jurisdiction over 10.18economic development, energy, and higher 10.19education by November 1, 2007. This is a 10.20onetime appropriation.10.21(x) $24,880,000 is for the Minnesota 10.22minerals 21st century fund created in 10.23Minnesota Statutes, section 116J.423, 10.24to restore the money unallotted by the 10.25commissioner of finance in 2003 pursuant 10.26to Minnesota Statutes, section 16A.152. 10.27This appropriation may be used as provided 10.28in Minnesota Statutes, section 116J.423, 10.29subdivision 2. This appropriation is available 10.30until expended.10.31(y) $900,000 each year is for a grant to the 10.32city of St. Paul to be used to pay debt service 10.33on bond obligations issued by the city of St. 10.34Paul in 1996 for the convention center.11.1(z) $189,000 each year is appropriated from 11.2the general fund to the commissioner of 11.3employment and economic development for 11.4grants of $63,000 to eligible organizations 11.5each year and for the purposes of this 11.6paragraph. Each state grant dollar must be 11.7matched with $1 of nonstate funds. Any 11.8balance in the first year does not cancel but is 11.9available in the second year.11.10The commissioner of employment and 11.11economic development must make grants to 11.12organizations to assist in the development 11.13of entrepreneurs and small businesses. 11.14Three grants must be awarded to continue 11.15or to develop a program. One grant must 11.16be awarded to the Riverbend Center for 11.17Entrepreneurial Facilitation in Blue Earth 11.18County, and two to other organizations 11.19serving Faribault and Martin Counties. Grant 11.20recipients must report to the commissioner 11.21by February 1 of each year that the 11.22organization receives a grant with the 11.23number of customers served; the number of 11.24businesses started, stabilized, or expanded; 11.25the number of jobs created and retained; and 11.26business success rates. The commissioner 11.27must report to the house of representatives 11.28and senate committees with jurisdiction 11.29over economic development finance on the 11.30effectiveness of these programs for assisting 11.31in the development of entrepreneurs and 11.32small businesses.11.33(aa) $10,000 for the biennium is to the 11.34commissioner of employment and economic 11.35development for the Minnesota investment 11.36fund. This grant is not subject to grant 12.1limitations under section 116J.8731, 12.2subdivision 5.

12.3Subd. 3.Workforce Development49,531,00049,197,000

12.4Appropriations by Fund12.5General34,786,00034,452,00012.612.7Workforce Development14,745,00014,745,000

12.8(a) $6,785,000 each year is for the Minnesota 12.9job skills partnership program under 12.10Minnesota Statutes, sections 116L.01 to 12.11116L.17. If the appropriation for either 12.12year is insufficient, the appropriation for the 12.13other year is available. This appropriation is 12.14available until spent.12.15(b) $305,000 each year is for a grant under 12.16Minnesota Statutes, section 116J.8747, to 12.17Twin Cities RISE! to provide training to 12.18hard-to-train individuals. 12.19(c) $1,375,000 each year is from 12.20the workforce development fund for 12.21Opportunities Industrialization Center 12.22programs. 12.23(d) $5,864,000 each year is from the general 12.24fund and $6,920,000 each year is from the 12.25workforce development fund for extended 12.26employment services for persons with 12.27severe disabilities or related conditions under 12.28Minnesota Statutes, section 268A.15. Of this, 12.29$125,000 each year and in the base for fiscal 12.30years 2010 and 2011 is to supplement funds 12.31paid for wage incentive for the community 12.32support fund established in Minnesota Rules, 12.33part 3300.2045.12.34(e) $1,900,000 each year is for grants for 12.35programs that provide employment support 13.1services to persons with mental illness under 13.2Minnesota Statutes, sections 268A.13 and 13.3268A.14. Up to $77,000 each year may be 13.4used for administrative and salary expenses.13.5(f) $2,190,000 each year is for grants under 13.6Minnesota Statutes, section 268A.11, for the 13.7eight centers for independent living. Money 13.8not expended the first year is available the 13.9second year.13.10(g) $5,940,000 each year is for State Services 13.11for the Blind activities.13.12(h) $150,000 each year is from the general 13.13fund and $175,000 each year is from the 13.14workforce development fund for grants under 13.15Minnesota Statutes, section 268A.03, to Rise, 13.16Inc. for the Minnesota Employment Center 13.17for People Who are Deaf or Hard-of-Hearing. 13.18Money not expended the first year is 13.19available the second year.13.20(i) $9,021,000 each year from the general 13.21fund is for the vocational rehabilitation 13.22program and $325,000 each year from 13.23the workforce development fund is for 13.24interpreters for a regional transition program 13.25specializing in culturally appropriate 13.26transition services leading to employment 13.27for deaf, hard-of-hearing, and deaf-blind 13.28students.13.29(j) $150,000 each year is for a grant to 13.30Advocating Change Together for training, 13.31technical assistance, and resource materials 13.32to persons with developmental and mental 13.33illness disabilities.13.34(k) $300,000 each year for a grant to 13.35Lifetrack Resources for its immigrant/refugee 14.1collaborative programs, including those 14.2related to job-seeking skills and workplace 14.3orientation, intensive job development, 14.4functional work English, and on-site job 14.5coaching. $50,000 of this amount is for a 14.6pilot Lifetrack project in Rochester.14.7(l) $1,075,000 each year is for the youthbuild 14.8program under Minnesota Statutes, sections 14.9116L.361 to 116L.366.14.10(m) $1,350,000 each year is from the 14.11workforce development fund for grants 14.12to fund summer youth employment in 14.13Minneapolis. The grants shall be used to 14.14fund up to 500 jobs for youth each summer. 14.15Of this appropriation, $350,000 each year is 14.16for a grant to the learn-to-earn summer youth 14.17employment program. The commissioner 14.18shall establish criteria for awarding the 14.19grants. This appropriation is available in 14.20either year of the biennium and is available 14.21until spent.14.22(n) $50,000 each year is for a grant 14.23to Northern Connections in Perham to 14.24implement and operate a pilot workforce 14.25program that provides one-stop supportive 14.26services to assist individuals as they transition 14.27into the workforce. This appropriation is 14.28available to the extent it is matched by $1 of 14.29nonstate money for each $1 of state money.14.30(o) $100,000 each year is for a grant to 14.31Ramsey County Workforce Investment Board 14.32for the development of the building lives 14.33program. This is a onetime appropriation.14.34(p) $300,000 each year is for a grant to the 14.35Hennepin-Carver Workforce Investment 15.1Board (WIB) to coordinate with the Partners 15.2for Progress Regional Skills Consortium 15.3to provide employment and training as 15.4demonstrated by the Twin Cities regional 15.5health care training partnership project.15.6(q) $160,000 the first year is for a grant 15.7to Workforce Development, Inc., for a 15.8pilot project to provide demand-driven 15.9employment and training services to 15.10welfare recipients and other economically 15.11disadvantaged populations in Mower, 15.12Freeborn, Dodge, and Steele Counties. This 15.13is a onetime appropriation.15.14(r) $200,000 each year is for a grant to 15.15HIRED to operate its industry sector training 15.16initiatives, which provide employee training 15.17developed in collaboration with employers in 15.18specific, high-demand industries. This is a 15.19onetime appropriation.15.20(s) $200,000 the first year is for a grant 15.21to a nonprofit organization. The nonprofit 15.22organization must work on behalf of all 15.23licensed vendors to coordinate their efforts 15.24to respond to solicitations or other requests 15.25from private and governmental units as 15.26defined in Minnesota Statutes, section 15.27471.59, subdivision 1, in order to increase 15.28employment opportunities for persons with 15.29disabilities.15.30(t) $3,500,000 each year from the workforce 15.31development fund is for the Minnesota youth 15.32program under Minnesota Statutes, section 15.33116L.56 and 116L.561.15.34(u) $500,000 each year from the workforce 15.35development fund is for a grant to the 16.1Minnesota Alliance of Boys and Girls 16.2Clubs to administer a statewide project 16.3of youth job skills development. This 16.4project, which may have career guidance 16.5components, including health and life skills, 16.6is to encourage, train, and assist youth in 16.7job-seeking skills, workplace orientation, 16.8and job site knowledge through coaching. 16.9This grant requires a 25 percent match from 16.10nonstate resources.16.11(v) $350,000 in each year from the workforce 16.12development fund is for a grant to Ramsey 16.13County for a summer youth employment 16.14program to place at-risk youth, ages 14 to 21, 16.15in subsidized summer employment.16.16(w) $10,000 the first year is for a study on 16.17ways to promote employment opportunities 16.18for minorities, with a particular focus on 16.19opportunities for American blacks, in the 16.20state of Minnesota. The study should focus 16.21on how to significantly expand the job 16.22training available to minorities and promote 16.23substantial increases in the wages paid to 16.24minorities, at least to a rate well above living 16.25wage, and within several years, to equality. 16.26The commissioner must report on the study 16.27to the governor and the chair of the finance 16.28committee in each house of the legislature 16.29that has jurisdiction over employment by 16.30January 15, 2008, with recommendations for 16.31implementing the findings.16.32The commissioner must provide funding 16.33for the Minnesota Conservation Corps to 16.34provide learning stipends for deaf students 17.1and wages for interpreters participating in 17.2the MCC summer youth program.

17.3Subd. 4.State-Funded Administration2,998,0003,020,000

17.4The first $1,450,000 deposited in each 17.5year of the biennium and in each year of 17.6subsequent bienniums into the contingent 17.7account created under Minnesota Statutes, 17.8section 268.196, subdivision 3, shall be 17.9transferred by June 30 of each fiscal year 17.10to the workforce development fund created 17.11under Minnesota Statutes, section 116L.20. 17.12Deposits in excess of $1,450,000 shall be 17.13transferred by June 30 of each fiscal year to 17.14the general fund.

17.1517.16Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY

17.17Subdivision 1.Total Appropriation$ 29,002,000$29,794,000

17.18Appropriations by Fund17.192008200917.20General 4,644,0005,035,00017.2117.22Workers' Compensation21,716,00022,053,00017.2317.24Workforce Development765,000781,00017.2517.26State Government Special Revenue1,877,0001,925,000

17.27The amounts that may be spent for each 17.28purpose are specified in the following 17.29subdivisions.

17.30Subd. 2.Workers' Compensation10,381,00010,659,000

17.31This appropriation is from the workers' 17.32compensation fund.17.33$200,000 each year is for grants to the 17.34Vinland Center for rehabilitation services.

17.35Subd. 3.Safety Codes and Services9,949,00010,134,000

18.1$5,292,000 the first year and $5,388,000 18.2the second year are from the workers' 18.3compensation fund. $1,877,000 the first year 18.4and $1,925,000 the second year are from the 18.5state government special revenue fund.18.6$1,000,000 each year is from the workers' 18.7compensation fund for patient safe handling 18.8grants under Minnesota Statutes, section 18.9182.6553.18.10$100,000 each year is from the workers' 18.11compensation fund for the operation of 18.12the meatpacking industry workers' rights 18.13ombudsman under Minnesota Statutes, 18.14section 179.87.

18.15Subd. 4.Labor Standards/Apprenticeship 2,629,0002,995,000

18.16Appropriations by Fund18.17General 1,864,0002,214,00018.1818.19Workforce Development765,000781,000

18.20The appropriation from the workforce 18.21development fund is for the apprenticeship 18.22program under Minnesota Statutes, chapter 18.23178, and includes $100,000 each year for 18.24labor education and advancement program 18.25grants.18.26$360,000 the first year and $300,000 the 18.27second year from the general fund are for 18.28prevailing wage enforcement of which 18.29$60,000 in the first year is for outreach and 18.30survey participation improvements.18.31$800,000 the first year and $1,200,000 the 18.32second year from the general fund are for the 18.33independent contractor certification under 18.34Minnesota Statutes, section 181.723.

18.35Subd. 5.General Support6,043,0006,006,000

19.1This appropriation is from the workers' 19.2compensation fund.

19.319.4Sec. 5. BUREAU OF MEDIATION SERVICES

19.5Subdivision 1.Total Appropriation$1,850,000$1,877,000

19.6The amounts that may be spent for each 19.7purpose are specified in the following 19.8subdivisions.

19.9Subd. 2.Mediation Services1,700,0001,727,000

19.1019.11Subd. 3.Labor Management Cooperation Grants150,000150,000

19.12$150,000 each year is for grants to area labor 19.13management committees. Grants may be 19.14awarded for a 12-month period beginning 19.15July 1 each year. Any unencumbered balance 19.16remaining at the end of the first year does not 19.17cancel but is available for the second year.

19.1819.19Sec. 6. WORKERS' COMPENSATION COURT OF APPEALS$1,663,000$1,710,000

19.20This appropriation is from the workers' 19.21compensation fund. 

19.22Sec. 7. BOARD OF ACCOUNTANCY$493,000$499,000

19.2319.2419.2519.26Sec. 8. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN$795,000$805,000

19.27Sec. 9. BOARD OF BARBER EXAMINERS$711,000$724,000

19.2819.29Sec. 10. MINNESOTA BOXING COMMISSION$50,000$-0-

19.30To transition the commission to being a 19.31self-funded entity. This appropriation may 20.1not be carried forward from the first year of 20.2the biennium to the second year.20.3    Sec. 11. BIOSCIENCE ZONES DESIGNATION.20.4    The commissioner of employment and economic development must establish a 20.5criteria for expanding the zones. The criteria must limit designating a new zone to a 20.6community that has adequate resources and infrastructure to support bioindustry, including 20.7postsecondary institutions, strong health care systems, and existing bioscience companies. 20.8It must also require that a new zone be located on a transportation corridor.20.9    Sec. 12. NANOTECHNOLOGY DEVELOPMENT FUND PROGRAM.20.10    Subdivision 1.Program established; purpose.The nanotechnology 20.11development fund program (NDF) is established to develop a collaborative economic 20.12development initiative between the state of Minnesota, the private sector, and multiple 20.13academic institutions to promote by small businesses an increased use of advanced 20.14nanoinstrumentation for characterization, fabrication, and other related processes; 20.15provide research consulting by knowledgeable specialists; and provide student internship 20.16opportunities to increase nanotechnology experience by working with small, medium, or 20.17large Minnesota companies. The NDF program shall be administered by the Department 20.18of Employment and Economic Development and is not a state agency.20.19    Subd. 2.Definition; qualifying Minnesota small business."Qualifying Minnesota 20.20small business" means:20.21    (1) a Minnesota small business corporation, sole proprietorship, or partnership that 20.22has fewer than 50 employees; or 20.23    (2) a Minnesota business corporation, sole proprietorship, or partnership that:20.24    (i) has 51 to 100 employees; and20.25    (ii) demonstrates current financial adversity or risk or a major prospect of aiding 20.26the business's long-term outlook by significant use of nanotechnology in the business's 20.27offerings.20.28    Subd. 3.Grants.The commissioner shall extend onetime matching grants from the 20.29NDF to qualifying Minnesota small businesses located throughout the state to:20.30    (1) add nanotechnology applications to products that are being developed by 20.31Minnesota small businesses to enhance distinctiveness;20.32    (2) promote the depth, breadth, and value of technologies being developed by 20.33Minnesota businesses with the aid of nanotechnology;21.1    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product 21.2time-to-market, with higher incidence of distinct product characteristics;21.3    (4) provide Minnesota small businesses with broader access to experienced research 21.4consultants; and21.5    (5) increase the number of researchers experienced in working with 21.6nanoinstrumentation.21.7    Subd. 4.Grant application and award procedure.(a) The commissioner may 21.8give priority to applicants:21.9    (1) whose intellectual property would benefit from utilization of nanoinstrumentation 21.10not possessed in-house;21.11    (2) who are currently utilizing nanoinstrumentation either at the University of 21.12Minnesota or a private sector location on a leased, hourly basis; and21.13    (3) who wish to increase their access to experienced research consultants.21.14    (b) The commissioner shall decide whether to award a grant to an eligible applicant 21.15based on:21.16    (1) the applicant's planned frequency of usage of nanoinstrumentation for 21.17characterization, fabrication, and other related processes; and21.18    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form 21.19of a signed affidavit from a certified facility to confirm the one-to-one private sector 21.20investment has been met.21.21    (c) A grant made under this section must:21.22    (1) include verification of matching rental fees or internship stipends paid by the 21.23grantee; and21.24    (2) be for a total amount paid to each grantee of not less than $500 nor more than 21.25$20,000 within the biennium.21.26    Subd. 5.Administration.The commissioner of employment and economic 21.27development must develop and maintain a record-keeping system that specifies how 21.28funds from the NDF are applied for and distributed. Businesses receiving grants 21.29from the NDF must provide contact information, the date and time of the use of the 21.30nanoinstrumentation, proof of their matching contribution to meet the rental costs or 21.31provide an internship's stipend, and a general statement of the expected outcome from 21.32the use of the nanoinstrumentation, to the extent documentation can be made without 21.33divulging proprietary information.21.34    Subd. 6.Gifts and donations.Gifts and donations, including land or interests in 21.35land, may be made to NDF. Noncash gifts and donations must be disposed of for cash 22.1as soon as the commissioner of employment and economic development can prudently 22.2maximize the value of the gift or donation.22.3    Subd. 7.Report to legislature.By June 30 of each odd-numbered year, the 22.4commissioner of employment and economic development must submit a report to the 22.5legislature with statistics about the use of the NDF.22.6    Sec. 13. WORK GROUP.22.7    The commissioner of employment and economic development shall convene a work 22.8group to evaluate the impact of the money appropriated for wage incentives and how the 22.9wage incentive program works. The work group is to make recommendations to the 22.10legislature by January 15, 2008.22.11ARTICLE 322.12EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS22.13    Section 1. Minnesota Statutes 2006, section 13.7931, is amended by adding a 22.14subdivision to read:22.15    Subd. 5.Data from safety and education programs for loggers.The following 22.16data collected from persons who attend safety and education programs or seminars for 22.17loggers established or approved by the commissioner under section 176.130, subdivision 22.1811, is public data:22.19    (1) the names of the individuals attending the program or seminar;22.20    (2) the names of each attendee's employer;22.21    (3) the city where the employer is located;22.22    (4) the date the program or seminar was held; and22.23    (5) a description of the seminar or program.22.24    Sec. 2. Minnesota Statutes 2006, section 116J.401, is amended by adding a subdivision 22.25to read:22.26    Subd. 4.Use of funds for unemployed worker assistance.Payment of employee 22.27compensation costs from the Wagner-Peyser Act referenced in subdivision 1, clause 22.28(8), must be used to provide direct benefit to unemployed and underemployed workers 22.29through the state's workforce centers. At least 75 percent of the employee compensation 22.30paid from Wagner-Peyser funds must be used for employees at workforce centers who 22.31provide direct assistance to unemployed and underemployed workers and no more than 22.3225 percent may be used for providing hiring and human resource services for employers. 22.33The funds under this section may be used to establish an internet based labor exchange 23.1system. By July 1 of each year, the commissioner must submit a report to the committees 23.2of the legislature responsible for oversight of unemployment insurance with details on 23.3the use of Wagner-Peyser funds, including the number of employee positions funded, the 23.4location of the employees, and the use of funds for internet labor exchange system and 23.5other business assistance.23.6    Sec. 3. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT 23.7INVESTMENT FUND.23.8    Subdivision 1.Eligible organization.For the purposes of this section, "eligible 23.9organization" means an organization established pursuant to section 116J.415 which 23.10provides business financing to greater Minnesota businesses.23.11    Subd. 2.Investment fund establishment.The commissioner shall establish an 23.12investment fund from which fund investments can be made in eligible organizations. The 23.13funds repaid by the eligible organizations are to be returned to the fund for subsequent 23.14reinvestment in eligible organizations.23.15    Subd. 3.Authorized investments.The commissioner is authorized to make 23.16investments in eligible organizations. The commissioner shall invest funds in the form of 23.17loans to eligible organizations for the purpose of providing capital to new and expanding 23.18businesses in the form of debt or equity, or both.23.19    Subd. 4.Investment authorized.The commissioner may make investments in 23.20eligible organizations under the following terms:23.21    (1) the organization seeking an investment of funds must guarantee repayment of not 23.22less than 100 percent of the funds invested in the eligible organization;23.23    (2) the investments are to be made in the form of a loan to the eligible organization 23.24for a term of ten years, at an interest rate of one percent;23.25    (3) during the ten-year term of the loan, the eligible organization shall make annual 23.26interest-only payments;23.27    (4) at the end of the ten-year term, the eligible organization is required to make a 23.28payment in the entire principal amount of the initial loan;23.29    (5) the state investment by the commissioner in any eligible organization may not 23.30exceed $2,000,000;23.31    (6) the full amount of state investment will be advanced to the approved eligible 23.32organization upon execution of a formal investment agreement, specifying the terms of the 23.33loan, as well as reporting and other requirements outlined in subdivision 5;23.34    (7) the eligible organization must maintain the funds in accounts that allow the funds 23.35to be readily available for business investments;24.1    (8) the eligible organization must make business investments totaling the entire 24.2amount of funds loaned by the state within three years of the execution of the investment 24.3agreement and subsequent transmittal of the funds; and24.4    (9) an eligible organization that receives an investment under this section shall 24.5report annually, in a format prescribed by the commissioner, the nature and amount of 24.6the business investments made, including, for each financing transaction involving funds 24.7received pursuant to this section, all forms and amounts of financing provided by the 24.8eligible organization from sources other than the investment fund established pursuant to 24.9this section, along with the number of jobs created and private sector investment leveraged.24.10    Subd. 5.Requirements for state investments.All investments are subject to an 24.11investment agreement which must include:24.12    (1) a description of the eligible organization, including business finance experience, 24.13qualifications, and investment history;24.14    (2) a description of the uses of investment proceeds by the eligible organization;24.15    (3) an explanation of the investment objectives;24.16    (4) a description of accounting and reporting standards to be used by the eligible 24.17organization; and24.18    (5) a copy of the most recent audited financial statements of the eligible organization.24.19    Sec. 4. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:24.20    Subdivision 1. Grant account. A contaminated site cleanup and development 24.21grant account is created in the general fund. Money in the account may be used, as 24.22appropriated by law, to make grants as provided in section 
         116J.554 and to pay for the 24.23commissioner's costs in reviewing applications and making grants. Notwithstanding 24.24section 
         16A.28, money appropriated to the account for this program from any source is 24.25available for four years until spent.24.26    Sec. 5. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:24.27    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the 24.28following criteria are met:24.29    (1) the site is not scheduled for funding during the current or next fiscal year under 24.30the Comprehensive Environmental Response, Compensation, and Liability Act, United 24.31States Code, title 42, section 9601, et seq. or under the Environmental Response, and 24.32Liability Act under sections 
         115B.01 to 
         115B.20; 24.33    (2) the appraised value of the site after adjusting for the effect on the value of the 24.34presence or possible presence of contaminants using accepted appraisal methodology, or 25.1the current market value of the site as issued under section 273.121, separately taking into 25.2account the effect of the contaminants on the market value, (i) is less than 75 percent of 25.3the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup 25.4costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and 25.5    (3) (2) if the proposed cleanup is completed, it is expected that the site will be 25.6improved with buildings or other improvements and these improvements will provide a 25.7substantial increase in the property tax base within a reasonable period of time or the site 25.8will be used for an important publicly owned or tax-exempt facility.25.9    Sec. 6. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:25.10    Subdivision 1. Priorities. (a) The legislature expects that applications for grants 25.11will exceed the available appropriations and the agency will be able to provide grants to 25.12only some of the applicant development authorities.25.13    (b) If applications for grants for qualified sites exceed the available appropriations, 25.14the agency shall make grants for sites that, in the commissioner's judgment, provide 25.15the highest return in public benefits for the public costs incurred and that meet all the 25.16requirements provided by law. In making this judgment, the commissioner shall consider 25.17the following factors:25.18    (1) the recommendations or ranking of projects by the commissioner of the Pollution 25.19Control Agency regarding the potential threat to public health and the environment that 25.20would be reduced or eliminated by completion of each of the response action plans;25.21    (2) the potential increase in the property tax base of the local taxing jurisdictions, 25.22considered relative to the fiscal needs of the jurisdictions, that will result from 25.23developments that will occur because of completion of each of the response action plans;25.24    (3) the social value to the community of the cleanup and redevelopment of the site, 25.25including the importance of development of the proposed public facilities on each of 25.26the sites;25.27    (4) the probability that each site will be cleaned up without use of government 25.28money in the reasonably foreseeable future by considering but not limited to the current 25.29market value of the site versus the cleanup cost;25.30    (5) the amount of cleanup costs for each site; and25.31    (6) the amount of the commitment of municipal or other local resources to pay for 25.32the cleanup costs.25.33    The factors are not listed in a rank order of priority; rather the commissioner may 25.34weigh each factor, depending upon the facts and circumstances, as the commissioner 25.35considers appropriate. The commissioner may consider other factors that affect the net 26.1return of public benefits for completion of the response action plan. The commissioner, 26.2notwithstanding the listing of priorities and the goal of maximizing the return of public 26.3benefits, shall make grants that distribute available money to sites both within and outside 26.4of the metropolitan area. The commissioner shall provide a written statement of the 26.5supporting reasons for each grant. Unless sufficient applications are not received for 26.6qualifying sites outside of the metropolitan area, at least 25 percent of the money provided 26.7as grants must be made for sites located outside of the metropolitan area.26.8    Sec. 7. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:26.9    Subdivision 1. Commissioner discretion. The commissioner may make a grant for 26.10up to 50 percent of the eligible costs of a project. The determination of whether to make a 26.11grant for a site is within the discretion of the commissioner, subject to this section and 26.12sections 
         116J.571 to 
         116J.574 and available unencumbered money in the redevelopment 26.13account. For grants made in fiscal years 2008 and 2009, at least 75 percent of the available 26.14grant funds must be used for grants in greater Minnesota. For grants made in fiscal year 26.152010 and later, at least 50 percent of the available grant funds must be used for grants 26.16in greater Minnesota. If the commissioner determines that the applications for grants 26.17for projects in greater Minnesota are less than the amount of grant funds available, the 26.18commissioner may make grants for projects anywhere in Minnesota. The commissioner's 26.19decisions and application of the priorities under this section are not subject to judicial 26.20review, except for abuse of discretion.26.21    Sec. 8. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:26.22    Subd. 1a. Priorities. (a) If applications for grants exceed the available 26.23appropriations, grants shall be made for sites that, in the commissioner's judgment, provide 26.24the highest return in public benefits for the public costs incurred. "Public benefits" include 26.25job creation, bioscience development, environmental benefits to the state and region, 26.26efficient use of public transportation, efficient use of existing infrastructure, provision of 26.27affordable housing, multiuse development that constitutes community rebuilding rather 26.28than single-use development, crime reduction, blight reduction, community stabilization, 26.29and property tax base maintenance or improvement. In making this judgment, the 26.30commissioner shall give priority to redevelopment projects with one or more of the 26.31following characteristics:26.32    (1) the need for redevelopment in conjunction with contamination remediation needs;26.33    (2) the redevelopment project meets current tax increment financing requirements 26.34for a redevelopment district and tax increments will contribute to the project;27.1    (3) the redevelopment potential within the municipality;27.2    (4) proximity to public transit if located in the metropolitan area; and27.3    (5) redevelopment costs related to expansion of a bioscience business in Minnesota; 27.4and27.5    (5)(6) multijurisdictional projects that take into account the need for affordable 27.6housing, transportation, and environmental impact.27.7    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 27.8commissioner may weigh each factor, depending upon the facts and circumstances, as 27.9the commissioner considers appropriate. The commissioner may consider other factors 27.10that affect the net return of public benefits for completion of the redevelopment plan. The 27.11commissioner, notwithstanding the listing of priorities and the goal of maximizing the 27.12return of public benefits, shall make grants that distribute available money to sites both 27.13within and outside of the metropolitan area. Unless sufficient applications are not received 27.14for qualifying sites outside of the metropolitan area, at least 25 percent of the money 27.15provided as grants must be made for sites located outside of the metropolitan area.27.16    Sec. 9. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:27.17    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and 27.18facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in 27.19addition to the powers granted by section 
         116J.035, the commissioner may: 27.20    (1) locate, develop, and promote international markets for Minnesota products 27.21and services;27.22    (2) arrange and lead trade missions to countries with promising international markets 27.23for Minnesota goods, technology, services, and agricultural products;27.24    (3) promote Minnesota products and services at domestic and international trade 27.25shows;27.26    (4) organize, promote, and present domestic and international trade shows featuring 27.27Minnesota products and services;27.28    (5) host trade delegations and assist foreign traders in contacting appropriate 27.29Minnesota businesses and investments;27.30    (6) develop contacts with Minnesota businesses and gather and provide information 27.31to assist them in locating and communicating with international trading or joint venture 27.32counterparts;27.33    (7) provide information, education, and counseling services to Minnesota businesses 27.34regarding the economic, commercial, legal, and cultural contexts of international trade;28.1    (8) provide Minnesota businesses with international trade leads and information 28.2about the availability and sources of services relating to international trade, such as 28.3export financing, licensing, freight forwarding, international advertising, translation, and 28.4custom brokering;28.5    (9) locate, attract, and promote foreign direct investment and business development 28.6in Minnesota to enhance employment opportunities in Minnesota;28.7    (10) provide foreign businesses and investors desiring to locate facilities in 28.8Minnesota information regarding sources of governmental, legal, real estate, financial, and 28.9business services;28.10    (11) enter into contracts or other agreements with private persons and public entities, 28.11including agreements to establish and maintain offices and other types of representation in 28.12foreign countries, to carry out the purposes of promoting international trade and attracting 28.13investment from foreign countries to Minnesota and to carry out this section, without 28.14regard to section 
         16C.06; and 28.15    (12) market trade-related materials to businesses and organizations, and the proceeds 28.16of which must be placed in a special revolving account and are appropriated to the 28.17commissioner to prepare and distribute trade-related materials.28.18    (b) The programs and activities of the commissioner of employment and economic 28.19development and the Minnesota Trade Division may not duplicate programs and activities 28.20of the commissioner of agriculture.28.21    (c) The commissioner shall notify the chairs of the senate Finance and house Ways 28.22and Means Committees of each agreement under this subdivision to establish and maintain 28.23an office or other type of representation in a foreign country.28.24    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing 28.25assistance to official visits by foreign government representatives and shall serve as liaison 28.26to the foreign diplomatic corps in Minnesota.28.27    Sec. 10. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision 28.28to read:28.29    Subd. 4.Workforce development intermediaries."Workforce development 28.30intermediaries" means public, private, or nonprofit entities that provide employment 28.31services to low-income individuals and have a demonstrated track record bringing together 28.32employers and workers, private and public funding streams, and other stakeholders to 28.33implement pathways to career advancement for low-income individuals. Entities may 28.34include, but are not limited to, nonprofit organizations, educational institutions, or the 28.35administrative entity of a local workforce service area.29.1    Sec. 11. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:29.2    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid 29.3for developing programs which assist in the transition of persons from welfare to work and 29.4assist individuals at or below 200 percent of the federal poverty guidelines. The program 29.5is to be operated by the board. The board shall consult and coordinate with program 29.6administrators at the Department of Employment and Economic Development to design 29.7and provide services for temporary assistance for needy families recipients.29.8    Pathways grants-in-aid may be awarded to educational or other nonprofit training 29.9institutions or to workforce development intermediaries for education and training 29.10programs and services supporting education and training programs that serve eligible 29.11recipients.29.12    Preference shall be given to projects that:29.13    (1) provide employment with benefits paid to employees;29.14    (2) provide employment where there are defined career paths for trainees;29.15    (3) pilot the development of an educational pathway that can be used on a continuing 29.16basis for transitioning persons from welfare to work; and29.17    (4) demonstrate the active participation of Department of Employment and 29.18Economic Development workforce centers, Minnesota State College and University 29.19institutions and other educational institutions, and local welfare agencies.29.20    Pathways projects must demonstrate the active involvement and financial 29.21commitment of private business. Pathways projects must be matched with cash or in-kind 29.22contributions on at least a one-to-one one-half-to-one ratio by participating private 29.23business.29.24    A single grant to any one institution shall not exceed $400,000. A portion of a grant 29.25may be used for preemployment training.29.26    Sec. 12. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:29.27    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 29.28have the meanings given them in this subdivision.29.29    (b) "Commissioner" means the commissioner of employment and economic 29.30development.29.31    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the 29.32time employment ceased or was working in the state at the time employment ceased and:29.33    (1) has been permanently separated or has received a notice of permanent separation 29.34from public or private sector employment and is eligible for or has exhausted entitlement 29.35to unemployment benefits, and is unlikely to return to the previous industry or occupation;30.1    (2) has been long-term unemployed and has limited opportunities for employment 30.2or reemployment in the same or a similar occupation in the area in which the individual 30.3resides, including older individuals who may have substantial barriers to employment by 30.4reason of age;30.5    (3) has been terminated or has received a notice of termination of employment as a 30.6result of a plant closing or a substantial layoff at a plant, facility, or enterprise;30.7    (4) has been self-employed, including farmers and ranchers, and is unemployed as a 30.8result of general economic conditions in the community in which the individual resides or 30.9because of natural disasters; or30.10    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who 30.11has spent a substantial number of years in the home providing homemaking service and 30.12(i) has been dependent upon the financial support of another; and now due to divorce, 30.13separation, death, or disability of that person, must find employment to self support; or (ii) 30.14derived the substantial share of support from public assistance on account of dependents 30.15in the home and no longer receives such support.30.16    To be eligible under this clause, the support must have ceased while the worker 30.17resided in Minnesota.30.18    (d) "Eligible organization" means a state or local government unit, nonprofit 30.19organization, community action agency, business organization or association, or labor 30.20organization.30.21    (e) "Plant closing" means the announced or actual permanent shutdown of a single 30.22site of employment, or one or more facilities or operating units within a single site of 30.23employment.30.24    (f) "Substantial layoff" means a permanent reduction in the workforce, which is 30.25not a result of a plant closing, and which results in an employment loss at a single site 30.26of employment during any 30-day period for at least 50 employees excluding those 30.27employees that work less than 20 hours per week.30.28    Sec. 13. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:30.29    Subdivision 1. Determination and collection of special assessment. (a) In addition 30.30to amounts due from an employer under the Minnesota unemployment insurance program, 30.31each employer, except an employer making reimbursements is liable for a special 30.32assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on 30.33all taxable wages, as defined in section 
         268.035, subdivision 24. Beginning January 1, 30.342008, the special assessment shall be levied at a rate of .085 percent per year on all taxable 30.35wages. The assessment shall become due and be paid by each employer on the same 31.1schedule and in the same manner as other amounts due from an employer under section 31.2268.051, subdivision 1
         .31.3    (b) The special assessment levied under this section shall be subject to the same 31.4requirements and collection procedures as any amounts due from an employer under the 31.5Minnesota unemployment insurance program.31.6    Sec. 14. Minnesota Statutes 2006, section 116L.666, subdivision 1, is amended to read:31.7    Subdivision 1. Designation of workforce service areas. For the purpose of 31.8administering federal, state, and local employment and training services, the commissioner 31.9shall designate the geographic boundaries for workforce service areas in Minnesota.31.10    The commissioner shall approve a request to be a workforce service area from:31.11    (1) a home rule charter or statutory city with a population of 200,000 or more or a 31.12county with a population of 200,000 or more; or31.13    (2) a consortium of contiguous home rule charter or statutory cities or counties 31.14with an aggregate population of 200,000 or more that serves a substantial part of one or 31.15more labor markets.31.16    The commissioner may approve a request to be a workforce service area from a 31.17home rule charter or statutory city or a county or a consortium of contiguous home 31.18rule charter or statutory cities or counties, without regard to population, that serves a 31.19substantial portion of a labor market area.31.20    The commissioner shall make a final designation of workforce service areas within 31.21the state after consulting with local elected officials and the governor's Workforce 31.22Development Council. Existing service delivery areas designated under the federal Job 31.23Training Partnership Act shall be initially designated as workforce service areas providing 31.24that no other petitions are submitted by local elected officials.31.25    The commissioner may redesignate workforce service areas, upon the advice and 31.26consent of the affected local elected officials, no more frequently than every two years. 31.27These redesignations must be made not later than four months before the beginning of a 31.28program year.31.29    Sec. 15. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:31.30    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit 31.31corporation with which it has entered into an agreement under subdivision 1. These 31.32loans must be used to support a new or expanding business. This support may include 31.33such forms of financing as the sale of goods to the business on installment or deferred 31.34payments, lease purchase agreements, or royalty investments in the business. The interest 32.1rate charged by a nonprofit corporation for a loan under this subdivision must not exceed 32.2the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the 32.3nonprofit corporation may charge a loan origination fee equal to or less than one percent 32.4of the loan value. The nonprofit corporation may retain the amount of the origination fee. 32.5The nonprofit corporation must provide at least an equal match to the loan received by the 32.6board. The maximum loan available to the nonprofit corporation under this subdivision is 32.7$50,000. Loans made to the nonprofit corporation under this subdivision may be made 32.8without interest. Repayments made by the nonprofit corporation must be deposited in the 32.9revolving fund created for urban initiative grants.32.10    Sec. 16. [116O.115] SMALL BUSINESS GROWTH ACCELERATION 32.11PROGRAM.32.12    Subdivision 1.Establishment; purpose.The small business growth acceleration 32.13program is established. The purpose of the program is to (1) help qualified companies 32.14implement technology and business improvements; and (2) bridge the gap between 32.15standard market pricing for technology and business improvements and what qualified 32.16companies can afford to pay.32.17    Subd. 2.Qualified company.A company is qualified to receive assistance under 32.18the small business growth acceleration program if it is a manufacturing company or a 32.19manufacturing-related service company that employs 100 or fewer full-time equivalent 32.20employees.32.21    Subd. 3.Applications for assistance.A company seeking assistance under the 32.22small business growth acceleration program must file an application according to the 32.23requirements of the corporation. A company's application for small business growth 32.24acceleration program assistance must include documentation of the company's overall plan 32.25for technology and business improvement and prioritize the components of the overall 32.26plan. The application must also document the company's need for small business growth 32.27acceleration program funds in order to carry forward the highest priority components of 32.28the plan.32.29    Subd. 4.Fund awards; use of funds.(a) The corporation shall establish 32.30procedures for determining which applicants for assistance under the small business 32.31growth acceleration program will receive program funding. Funding shall be awarded 32.32only to accelerate a qualified company's adoption of needed technology or business 32.33improvements when the corporation concludes that it is unlikely the improvements could 32.34be accomplished in any other way.33.1    (b) The maximum amount of funds awarded to a qualified company under the small 33.2business growth acceleration program for a particular project must not exceed 50 percent 33.3of the total cost of a project and must not under any circumstances exceed $25,000 during 33.4a calendar year. The corporation shall not award to a qualified company small business 33.5growth acceleration program funds in excess of $50,000 per year.33.6    (c) Any funds awarded to a qualified company under the small business growth 33.7acceleration program must be used for business services and products that will enhance the 33.8operation of the company. These business services and products must come either directly 33.9from the corporation or from a network of expert providers identified and approved by 33.10the corporation. No company receiving small business growth acceleration program 33.11funds may use the funds for refinancing, overhead costs, new construction, renovation, 33.12equipment, or computer hardware.33.13    (d) Any funds awarded must be disbursed to the qualified company as reimbursement 33.14documented according to requirements of the corporation.33.15    Subd. 5.Service agreements.The corporation shall enter a written service 33.16agreement with each company awarded funds under the small business growth acceleration 33.17program. Each service agreement shall clearly articulate the company's need for service, 33.18state the cost of the service, identify who will provide the service, and define the scope of 33.19the service that will be provided. The service agreement must also include an estimate 33.20of the financial impact of the service on the company and require the company to report 33.21the actual financial impact of the service to the corporation 24 months after the service is 33.22provided.33.23    Subd. 6.Reporting.The corporation shall report annually to the legislative 33.24committees with fiscal jurisdiction over the Department of Employment and Economic 33.25Development:33.26    (1) the funds awarded under the small business growth acceleration program during 33.27the past 12 months;33.28    (2) the estimated financial impact of the funds awarded to each company receiving 33.29service under the program; and33.30    (3) the actual financial impact of funds awarded during the past 24 months.33.31    Sec. 17. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.33.32    Subdivision 1.Definitions.For the purposes of this section and section 179.87: 33.33    (1) "employer" means any person or business entity having 25 or more full-time 33.34employees in the meatpacking industry; and34.1    (2) "meatpacking industry" means business operations in which slaughtering, 34.2butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry 34.3packing, poultry manufacturing, pet food manufacturing, processing of meatpacking 34.4products, or rendering is carried on. Meatpacking products include livestock and poultry 34.5products.34.6    Subd. 2.Right to adequate facilities.An employer must provide its employees:34.7    (1) adequate and working restroom facilities;34.8    (2) adequate room for meal and rest breaks;34.9    (3) adequate locker facilities; and34.10    (4) adequate time for necessary restroom and meal breaks as required under chapter 34.11177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter 34.12126, or a valid collective bargaining agreement.34.13    Subd. 3.Right to adequate equipment and training.An employer must furnish its 34.14employees with equipment and training that is adequate to perform the job task assigned. 34.15An employer must make ongoing skill development and training opportunities, including 34.16supervisory training, available to employees.34.17    Subd. 4.Information provided to employee by employer.(a) An employer must 34.18provide an explanation in an employee's native language of the employee's rights and 34.19duties as an employee either person-to-person or through written materials as required 34.20by state or federal law, or a valid collective bargaining agreement that, at a minimum, 34.21includes:34.22    (1) a complete description of the salary and benefits plans as they relate to the 34.23employee as required under chapter 181;34.24    (2) a job description for the employee's position as required under chapter 181;34.25    (3) a description of leave policies as required under chapter 181 and United States 34.26Code, title 29, chapter 28;34.27    (4) a description of the work hours and work hours policy as required under chapter 34.28181; United States Code, title 29, chapter 201; or a valid collective bargaining agreement; 34.29and34.30    (5) a description of the occupational hazards known to exist for the position as 34.31required under chapters 181 and 182 and United States Code, title 29, chapter 15.34.32    (b) The explanation must also include information on the following employee rights 34.33as protected by state or federal law and a description of where additional information 34.34about those rights may be obtained:34.35    (1) the right to organize and bargain collectively as required under this chapter and 34.36chapter 177, and United States Code, title 29, chapter 7;35.1    (2) the right to a safe workplace as required under chapters 181 and 182 and United 35.2States Code, title 29, chapter 15; and35.3    (3) the right to be free from discrimination as required under this chapter and 35.4chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.35.5    Sec. 18. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS 35.6OMBUDSMAN.35.7    Subdivision 1.Position established.The position of meatpacking industry workers 35.8rights ombudsman is established within the Department of Labor and Industry. The 35.9ombudsman shall be an employee of the department. The ombudsman shall be appointed 35.10by the commissioner in consultation with the chairs of the standing committees of the 35.11senate and house of representatives with jurisdiction over labor and employment issues in 35.12accordance with the preference established in subdivision 5.35.13    Subd. 2.Duties.The ombudsman shall inspect and review the practices and 35.14procedures of meatpacking operations in the state. The ombudsman shall work to ensure 35.15workers rights under section 179.86 are protected.35.16    Subd. 3.Access.The ombudsman or designated representatives of the ombudsman 35.17shall have access to all meatpacking operations in the state at any time meatpacking 35.18products are being processed and industry workers are on the job.35.19    Subd. 4.Office.Necessary office space, furniture, equipment, and supplies as 35.20well as necessary assistance for the ombudsman shall be provided by the Department of 35.21Labor and Industry.35.22    Subd. 5.Language preference.Preference shall be given to applicants for the 35.23ombudsman position who are fluent in languages in addition to English.35.24    Subd. 6.Report.The ombudsman shall, on or before December 1 of each year, 35.25submit a report to the members of the legislature and the governor regarding any 35.26recommended actions the ombudsman deems necessary or appropriate to provide for the 35.27fair treatment of workers in the meatpacking industry.35.28    Sec. 19. Minnesota Statutes 2006, section 179A.04, subdivision 3, is amended to read:35.29    Subd. 3. Other duties. (a) The commissioner shall:35.30    (1) provide mediation services as requested by the parties until the parties reach 35.31agreement, and may continue to assist parties after they have submitted their final 35.32positions for interest arbitration;35.33    (2) issue notices, subpoenas, and orders required by law to carry out duties under 35.34sections 
         179A.01 to 
         179A.25; 36.1    (3) assist the parties in formulating petitions, notices, and other papers required to 36.2be filed with the commissioner;36.3    (4) conduct elections;36.4    (5) certify the final results of any election or other voting procedure conducted 36.5under sections 
         179A.01 to 
         179A.25; 36.6    (6) adopt rules relating to the administration of this chapter and the conduct of 36.7hearings and elections;36.8    (7) receive, catalogue, file, and make available to the public all decisions of 36.9arbitrators and panels authorized by sections 
         179A.01 to 
         179A.25, all grievance arbitration 36.10decisions, and the commissioner's orders and decisions; 36.11    (8) adopt, subject to chapter 14, a grievance procedure that fulfills the purposes of 36.12section 
         179A.20, subdivision 4, that is available to any employee in a unit not covered by 36.13a contractual grievance procedure; 36.14    (9) maintain a schedule of state employee classifications or positions assigned to 36.15each unit established in section 
         179A.10, subdivision 2; 36.16    (10) collect fees established by rule for empanelment of persons on the labor 36.17arbitrator roster maintained by the commissioner or in conjunction with fair share fee 36.18challenges. Arbitrator application fees will be $100 per year for initial applications and 36.19renewals effective July 1, 2007;36.20    (11) provide technical support and assistance to voluntary joint labor-management 36.21committees established for the purpose of improving relationships between exclusive 36.22representatives and employers, at the discretion of the commissioner;36.23    (12) provide to the parties a list of arbitrators as required by section 
         179A.16, 36.24subdivision 4
         ; and 36.25    (13) maintain a list of up to 60 arbitrators for referral to employers and exclusive 36.26representatives for the resolution of grievance or interest disputes. Each person on the 36.27list must be knowledgeable about collective bargaining and labor relations in the public 36.28sector, well versed in state and federal labor law, and experienced in and knowledgeable 36.29about labor arbitration. To the extent practicable, the commissioner shall appoint members 36.30to the list so that the list is gender and racially diverse.36.31    (b) From the names provided by representative organizations, the commissioner 36.32shall maintain a list of arbitrators to conduct teacher discharge or termination hearings 36.33according to section 
         122A.40 or 
         122A.41. The persons on the list must meet at least 36.34one of the following requirements: 36.35    (1) be a former or retired judge;36.36    (2) be a qualified arbitrator on the list maintained by the bureau;37.1    (3) be a present, former, or retired administrative law judge; or37.2    (4) be a neutral individual who is learned in the law and admitted to practice in 37.3Minnesota, who is qualified by experience to conduct these hearings, and who is without 37.4bias to either party.37.5    Each year, education Minnesota shall provide a list of up to 14 names and the 37.6Minnesota School Boards Association a list of up to 14 names of persons to be on the list. 37.7The commissioner may adopt rules about maintaining and updating the list.37.8    Sec. 20. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE 37.9PRESENCE OF LIQUOR.37.10    No minor under the age of 18 shall be employed in any rooms constituting the place 37.11in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any 37.12tasks involving the serving, dispensing, or handling of such liquors that are consumed on 37.13the premises except that:37.14    (1) minors who have reached the age of 16 may be employed to perform busing or 37.15dishwashing services in those rooms or areas of a restaurant, hotel, motel, or resort where 37.16the presence of intoxicating liquor is incidental to food service or preparation; 37.17    (2) minors who have reached the age of 16 may be employed to perform busing or 37.18dishwashing services or to provide waiter or waitress service in rooms or areas where the 37.19presence of 3.2 percent malt liquor is incidental to food service or preparation;37.20    (3) minors who have reached the age of 16 may be employed to provide musical 37.21entertainment in those rooms or areas where the presence of intoxicating liquor and 3.237.22percent malt liquor is incidental to food service or preparation; and 37.23    (4) minors are not prevented from working at tasks which are not prohibited by law 37.24in establishments where liquor is sold, served, dispensed, or handled in those rooms or 37.25areas where no liquor is consumed or served.37.26    Sec. 21. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:37.27    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on 37.28employers and employees of this state resulting from personal injuries and illnesses arising 37.29out of work situations is substantial; that the prevention of these injuries and illnesses is an 37.30important objective of the government of this state; that the greatest hope of attaining this 37.31objective lies in programs of research and education, and in the earnest cooperation of 37.32government, employers and employees; and that a program of regulation and enforcement 37.33is a necessary supplement to these more basic programs.38.1    The legislature declares it to be its purpose and policy through the exercise of its 38.2powers to assure so far as possible every worker in the state of Minnesota safe and 38.3healthful working conditions and to preserve our human resources by:38.4    (a) authorizing the Occupational Safety and Health Advisory Council to advise, 38.5consult with or recommend on any matters relating to the Minnesota occupational 38.6safety and health plan to the commissioner of labor and industry and by authorizing the 38.7commissioner of labor and industry to promulgate and enforce mandatory occupational 38.8safety and health standards applicable to employers and employees in the state of 38.9Minnesota;38.10    (b) encouraging employers and employees to increase their efforts to reduce the 38.11number of occupational safety and health hazards at their places of employment, and to 38.12stimulate employers and employees to institute new and to perfect existing programs for 38.13providing safe and healthful working conditions;38.14    (c) providing that employers and employees have separate but dependent 38.15responsibilities and rights with respect to achieving safe and healthful working conditions;38.16    (d) providing for research in the field of occupational safety and health; including 38.17the psychological factors involved, and by developing innovative methods, techniques, 38.18and approaches for dealing with occupational safety and health problems;38.19    (e) exploring ways to discover latent diseases, establishing causal connections 38.20between diseases and work in environmental conditions, and conducting other research 38.21relating to health problems, in recognition of the fact that occupational health standards 38.22present problems often different from those involved in occupational safety;38.23    (f) utilizing advances already made by federal laws and regulations providing safe 38.24and healthful working conditions;38.25    (g) providing criteria which will assure insofar as practicable that no employee 38.26will suffer diminished health, functional capacity, or life expectancy as a result of work 38.27experience;38.28    (h) providing an effective enforcement program which shall include locating 38.29enforcement personnel in areas of the state with a higher incidence of workplace fatalities, 38.30injuries, and complaints and a prohibition against giving advance notice of an inspection 38.31and sanctions for any individual violating this prohibition;38.32    (i) providing for appropriate reporting procedures with respect to occupational 38.33safety and health, which procedures will help achieve the objectives of this chapter and 38.34accurately describe the nature of the occupational safety and health problem;38.35    (j) encouraging joint labor-management efforts to reduce injuries and diseases 38.36arising out of employment;39.1    (k) providing consultation to employees and employers which will aid them in 39.2complying with their responsibilities under this chapter where such consultation does not 39.3interfere with the effective enforcement of this chapter; and39.4    (l) providing for training programs to increase the number and competence of 39.5personnel engaged in the field of occupational safety and health.39.6    Sec. 22. [182.6551] CITATION.39.7    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."39.8    Sec. 23. [182.6552] DEFINITIONS.39.9    Subdivision 1.Direct patient care worker."Direct patient care worker" means an 39.10individual doing the job of directly providing physical care to patients including nurses, as 39.11defined by section 148.171, who provide physical care to patients.39.12    Subd. 2.Health care facility."Health care facility" means a hospital as defined in 39.13section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55, 39.14subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.39.15    Subd. 3.Safe patient handling."Safe patient handling" means a process, based on 39.16scientific evidence on causes of injuries, that uses safe patient handling equipment rather 39.17than people to transfer, move, and reposition patients in all health care facilities to reduce 39.18workplace injuries. This process also reduces the risk of injury to patients.39.19    Subd. 4.Safe patient handling equipment."Safe patient handling equipment" 39.20means engineering controls, lifting and transfer aids, or mechanical assistive devices used 39.21by nurses and other direct patient care workers instead of manual lifting to perform the 39.22acts of lifting, transferring, and repositioning health care facility patients and residents.39.23    Sec. 24. [182.6553] SAFE PATIENT HANDLING PROGRAM.39.24    Subdivision 1.Safe patient handling program required.(a) By July 1, 2008, 39.25every licensed health care facility in the state shall adopt a written safe patient handling 39.26policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing 39.27manual lifting of patients by nurses and other direct patient care workers by utilizing 39.28safe patient handling equipment.39.29    (b) The program shall address:39.30    (1) assessment of hazards with regard to patient handling;39.31    (2) the acquisition of an adequate supply of appropriate safe patient handling 39.32equipment;40.1    (3) initial and ongoing training of nurses and other direct patient care workers on 40.2the use of this equipment;40.3    (4) procedures to ensure that physical plant modifications and major construction 40.4projects are consistent with program goals; and 40.5    (5) periodic evaluations of the safe patient handling program.40.6    Subd. 2.Safe patient handling committee.(a) By July 1, 2008, every licensed 40.7health care facility in the state shall establish a safe patient handling committee either by 40.8creating a new committee or assigning the functions of a safe patient handling committee 40.9to an existing committee.40.10    (b) Membership of a safe patient handling committee or an existing committee must 40.11meet the following requirements: 40.12    (1) at least half the members shall be nonmanagerial nurses and other direct patient 40.13care workers; and 40.14    (2) in a health care facility where nurses and other direct patient care workers 40.15are covered by a collective bargaining agreement, the union shall select the committee 40.16members proportionate to its representation of nonmanagerial workers, nurses, and other 40.17direct patient care workers.40.18    (c) A health care organization with more than one covered health care facility may 40.19establish a committee at each facility or one committee to serve this function for all the 40.20facilities. If the organization chooses to have one overall committee for multiple facilities, 40.21at least half of the members of the overall committee must be nonmanagerial nurses and 40.22other direct patient care workers and each facility must be represented on the committee.40.23    (d) Employees who serve on a safe patient handling committee must be compensated 40.24by their employer for all hours spent on committee business.40.25    Subd. 3.Facilities with existing programs.A facility that has already adopted a 40.26safe patient handling policy that satisfies the requirements of subdivision 1, and established 40.27a safe patient handling committee by July 1, 2008, is considered to be in compliance 40.28with those requirements. The committee must continue to satisfy the requirements of 40.29subdivision 2, paragraph (b), on an ongoing basis. 40.30    Subd. 4.Committee duties.A safe patient handling committee shall:40.31    (1) complete a patient handling hazard assessment that: 40.32    (i) considers patient handling tasks, types of nursing units, patient populations, and 40.33the physical environment of patient care areas; 40.34    (ii) identifies problems and solutions; 40.35    (iii) identifies areas of highest risk for lifting injuries; and 40.36    (iv) recommends a mechanism to report, track, and analyze injury trends;41.1    (2) make recommendations on the purchase, use, and maintenance of an adequate 41.2supply of appropriate safe patient handling equipment;41.3    (3) make recommendations on training of nurses and other direct patient care 41.4workers on use of safe patient handling equipment, initially when the equipment arrives at 41.5the facility and periodically afterwards;41.6    (4) conduct annual evaluations of the safe patient handling implementation plan and 41.7progress toward goals established in the safe patient handling policy; and41.8    (5) recommend procedures to ensure that, when remodeling of patient care areas 41.9occurs, the plans incorporate safe patient handling equipment or the physical space and 41.10construction design needed to accommodate safe patient handling equipment at a later date.41.11    Subd. 5.Training materials.The commissioner shall make training materials on 41.12implementation of this section available to all health care facilities at no cost as part of the 41.13training and education duties of the commissioner under section 182.673.41.14    Subd. 6.Enforcement.This section shall be enforced by the commissioner under 41.15section 182.661. A violation of this section is subject to the penalties provided under 41.16section 182.666.41.17    Subd. 7.Grant program.The commissioner may make grants to health care 41.18facilities to acquire safe patient handling equipment and for training on safe patient 41.19handling and safe patient handling equipment. Grants to any one facility may not exceed 41.20$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The 41.21commissioner shall establish a grant application process. The commissioner may give 41.22priority for grants to facilities that demonstrate that acquiring safe patient handling 41.23equipment will impose a financial hardship on the facility. For health care facilities 41.24that provide evidence of hardship, the commissioner may waive the 50 percent match 41.25requirement and may grant such a facility more than $40,000. Health care facilities that 41.26the commissioner determines are experiencing hardship shall not be required to meet the 41.27safe patient handling requirements until July 1, 2012.41.28    Sec. 25. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:41.29    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall not 41.30be eligible to receive unemployment benefits for any week with respect to which the 41.31applicant is receiving, has received, or has filed for payment, equal to or in excess of the 41.32applicant's weekly unemployment benefit amount, in the form of:41.33    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause 41.34shall not apply to vacation pay paid upon a permanent separation from employment;42.1    (2) severance pay, bonus pay, sick pay, and any other money payments, except 42.2earnings under subdivision 5, and back pay under subdivision 6, paid by an employer 42.3because of, upon, or after separation from employment, but only if the money payment is 42.4considered wages at the time of payment under section 
         268.035, subdivision 29, or United 42.5States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;. 42.6This clause does not apply to the first $10,000 of any amount of severance pay, bonus 42.7pay, sick pay, or any other payments paid to an employee with annual salary or wages 42.8under $75,000; or42.9    (3) pension, retirement, or annuity payments from any plan contributed to by a base 42.10period employer including the United States government, except Social Security benefits 42.11which are provided for in subdivision 4. The base period employer contributed to the 42.12plan if the contribution is excluded from the definition of wages under section 
         268.035, 42.13subdivision 29
         , clause (1), or United States Code, title 26, section 3121, clause (2), of 42.14the Federal Insurance Contribution Act.42.15    An applicant shall not be considered to have received the lump sum payment if the 42.16applicant immediately deposits that payment in a qualified pension plan or account; or42.17    (4) holiday pay.42.18    (b) This subdivision shall apply to all the weeks of payment and shall be applied to 42.19the period immediately following the last day of employment. The number of weeks of 42.20payment shall be determined as follows:42.21    (1) if the payments are made periodically, the total of the payments to be received 42.22shall be divided by the applicant's last level of regular weekly pay from the employer; or42.23    (2) if the payment is made in a lump sum, that sum shall be divided by the applicant's 42.24last level of regular weekly pay from the employer.42.25    (c) If the payment is less than the applicant's weekly unemployment benefit amount, 42.26unemployment benefits shall be reduced by the amount of the payment. If the computation 42.27of reduced unemployment benefits is not a whole dollar, it shall be rounded down to the 42.28next lower whole dollar.42.29EFFECTIVE DATE.This section is effective for unemployment benefits paid on 42.30or after January 1, 2006, regardless of when the continued request was filed or the week 42.31for which the unemployment benefits are paid.42.32    Sec. 26. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision 42.33to read:42.34    Subd. 5.Unemployment insurance benefits telephone system.The commissioner 42.35must ensure that the telephone system used for unemployment insurance benefits provides 43.1an option for any caller to speak to an unemployment insurance specialist. An individual 43.2who calls any of the publicized telephone numbers seeking information about applying for 43.3benefits or on the status of a claim must have the option to speak on the telephone to a 43.4specialist who can provide direct assistance or can direct the caller to the person or office 43.5that is able to respond to the caller's needs.43.6    Sec. 27. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:43.7    Subd. 13. Supported employment.(a) "Supported employment" means 43.8employment of a person with a disability so severe that the person needs ongoing training 43.9and support to get and keep a job in which:43.10    (1) the person engages in paid work in a position removed from the service vendor's 43.11site where individuals without disabilities who do not require public subsidies also may 43.12be employed;43.13    (2) public funds are necessary to provide ongoing training and support services 43.14throughout the period of the person's employment; and43.15    (3) the person has the opportunity for social interaction with individuals who do not 43.16have disabilities and who are not paid caregivers.43.17    (b) If the commissioner has certified a rehabilitation facility setting as integrated, 43.18then employment at that site may be considered supported employment.43.19    Sec. 28. Minnesota Statutes 2006, section 268A.01, is amended by adding a 43.20subdivision to read:43.21    Subd. 14.Affirmative business enterprise employment."Affirmative business 43.22enterprise employment" means employment which provides paid work on the premises of 43.23an affirmative business enterprise as certified by the commissioner.43.24    Affirmative business enterprise employment is considered community employment 43.25for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided 43.26that the wages for individuals reported must be at or above customary wages for the 43.27same employer. The employer must also provide one benefit package that is available to 43.28all employees.43.29    Sec. 29. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:43.30    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit 43.31corporation, or combination thereof establishing a rehabilitation facility shall appoint a 43.32rehabilitation facility board of no fewer than nineseven voting members before becoming 43.33eligible for the assistance provided by sections 
         268A.06 to 
         268A.15. When any city, 44.1town, or county singly establishes such a rehabilitation facility, the board shall be 44.2appointed by the chief executive officer of the city or the chair of the governing board 44.3of the county or town. When any combination of cities, towns, counties, or nonprofit 44.4corporations establishes a rehabilitation facility, the chief executive officers of the cities, 44.5nonprofit corporations, and the chairs of the governing bodies of the counties or towns 44.6shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation 44.7facility, the corporation shall appoint the board of directors. Membership on a board 44.8shall be representative of the community served and shall include a person with a 44.9disability. One-third to one-half of the board shall be representative of industry or 44.10business. The remaining members should be representative of lay associations for persons 44.11with a disability, labor, the general public, and education, welfare, medical, and health 44.12professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude 44.13the appointment of elected or appointed public officials or members of the board of 44.14directors of the sponsoring nonprofit corporation to the board, so long as the representation 44.15described above is preserved. If a county establishes an extended employment program 44.16and manages the program with county employees, the governing board shall be the county 44.17board of commissioners, and other provisions of this chapter pertaining to membership on 44.18the governing board do not apply. 44.19    Sec. 30. Minnesota Statutes 2006, section 268A.15, is amended by adding a 44.20subdivision to read:44.21    Subd. 9.Integrated setting.At the commissioner's discretion, paid work on the 44.22premises of a rehabilitation facility may be certified as an integrated setting after a site 44.23review by the department.44.24    Sec. 31. [325E.259] CUSTOMER SALES OR SERVICE CALL CENTER 44.25REQUIREMENTS.44.26    Subdivision 1.Definitions.For purposes of this section, the following terms have 44.27the meanings given them.44.28    (1) "Customer sales and service call center" means an entity whose primary purpose 44.29includes the initiating or receiving of telephonic communications on behalf of any person 44.30for the purpose of initiating telephone solicitations as defined in section 325E.311, 44.31subdivision 6.44.32    (2) "Customer service call center" means an entity whose primary purpose includes 44.33the initiating or receiving of telephonic communications on behalf of any person for the 45.1purposes of providing or receiving services or information necessary in connection with 45.2the providing of services or other benefits.45.3    (3) "Customer services employee" means a person employed by or working on 45.4behalf of a customer sales call center or a customer service call center.45.5    Subd. 2.Customers' right to customer sales or customer service call center 45.6information.(a) An individual who is a Minnesota resident who receives a telephone call 45.7from, or places a telephone call to, a customer sales call center or a customer service call 45.8center, upon request, has the right to know the identification of the state or country where 45.9the customer service employee is located.45.10    (b) An individual who is a Minnesota resident who receives a telephone solicitation 45.11from, or places a telephone call to, a customer sales call center or a customer service call 45.12center located in a foreign country, which requests the Minnesota resident's financial, 45.13credit, or identifying information, has the right, upon reaching a customer service 45.14representative, to request an alternative option to contact a customer sales or service 45.15center located in the United States before the information is given if the alternative 45.16option is available.45.17    Subd. 3.Nonapplicability; business-to-business calls.The rights granted under 45.18this section to an individual who is a Minnesota resident do not apply when the individual 45.19who is a Minnesota resident is making or receiving the call on behalf of a business.45.20    Subd. 4.Violation.It is fraud under section 325F.69 for a person to willfully 45.21violate this section.45.22    Subd. 5.Application to other remedies.Nothing in this section changes the 45.23remedies currently available under state or federal law or creates additional or new 45.24remedies.45.25EFFECTIVE DATE.This section is effective August 1, 2007.45.26    Sec. 32. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision 45.27to read:45.28    Subd. 5.Local planning assistance.A regional development commission or, 45.29in regions not served by regional development commissions, a regional organization 45.30selected by the commissioner of employment and economic development, may develop a 45.31program to support planning on behalf of local units of government. The local planning 45.32must be related to issues of regional or statewide significance and may include, but is not 45.33limited to, the following:45.34    (1) local planning and development assistance, which may include local zoning 45.35ordinances and land use plans;46.1    (2) community or economic development plans, which may include workforce 46.2development plans, housing development plans and market analysis, JOBZ administration, 46.3grant writing assistance, and grant administration;46.4    (3) environment and natural resources plans, which may include solid waste 46.5management plans, wastewater management plans, and renewable energy development 46.6plans;46.7    (4) rural community health services; and46.8    (5) development of geographical information systems to serve regional needs, 46.9including hardware and software purchases and related labor costs.46.10    Each regional development commission or organization shall submit to the 46.11commissioner of employment and economic development an annual work program 46.12that outlines the work items for the upcoming year and establishes the relationship of 46.13the work items to development issues of regional or statewide significance. The entity 46.14completing the annual work program and identifying the statewide development issues 46.15shall consider input from the Departments of Employment and Economic Development, 46.16Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as 46.17appropriate to the issues.46.18    Sec. 33. WORKFORCE ENHANCEMENT FEE.46.19    If the commissioner of employment and economic development determines that 46.20the need for services under the dislocated worker program substantially exceeds the 46.21resources that will be available for the program, the commissioner may increase the 46.22special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no 46.23more than .12 percent of taxable wages.46.24    Sec. 34. FEDERAL PROCUREMENT LIAISON.46.25    The commissioner of employment and economic development must establish and 46.26operate a technology and commercialization unit in the Department of Employment and 46.27Economic Development. Appropriation for this purpose must be used to: coordinate 46.28public and private efforts to procure federal funding for collaborative research and 46.29development projects of primary benefit to small- and medium-sized businesses; promote 46.30contractual relationships between Minnesota businesses who, as recipients of federal 46.31grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess 46.32the research and development capabilities of small- and medium-sized businesses; 46.33undertake referral activities to link Minnesota companies with federal requests for 47.1proposal opportunities; and develop a framework for Minnesota companies to establish 47.2sole-sourcing relationships with federal agencies.47.3    The commissioner must report to the committees in the house of representatives and 47.4the senate having jurisdiction over bioscience and technology issues on the activities of 47.5the technology and commercialization unit by June 30 of each year.47.6    Sec. 35. LOCATION OF NORTHERN MINNESOTA INSPECTORS.47.7    By December 31, 2007, the commissioner of labor and industry must assign three 47.8occupational safety and health inspectors to one or more offices on the Iron Range and one 47.9inspector to an office in Bemidji.47.10    Sec. 36. WORKING GROUP ON STATE ROLE IN TRADE POLICY.47.11    Subdivision 1.Work group members.The Department of Employment and 47.12Economic Development must convene a working group to develop recommendations for 47.13establishing policies and procedures regarding the role of the state in federal trade policy 47.14and trade agreements. The working group must be comprised of 17 members as follows:47.15    (1) the governor or his designee;47.16    (2) the commissioner of the Department of Employment and Economic Development 47.17or his designee;47.18    (3) the commissioner of the Department of Agriculture or his designee;47.19    (4) the commissioner of the Department of Administration or his designee;47.20    (5) the attorney general or her designee;47.21    (6) two members of the Minnesota senate one of whom is appointed by the senate 47.22majority leader and one appointed by the minority leader;47.23    (7) two members of the Minnesota house of representatives, one of whom is 47.24appointed by the speaker and one appointed by the minority leader;47.25    (8) two members designated by the Minnesota AFL-CIO;47.26    (9) two members representing labor organizations other than the AFL-CIO with one 47.27to be appointed by the speaker of the Minnesota house of representatives and one to be 47.28appointed by the majority leader of the Minnesota senate;47.29    (10) two members designated by the Minnesota Chamber of Commerce; and47.30(11) two members representing business organizations other than the Minnesota 47.31Chamber of Commerce appointed by the governor.47.32    The Department of Employment and Economic Development must provide 47.33administrative support to the working group. 48.1    Subd. 2.Duties; responsibilities.The working group may obtain input from other 48.2state and federal agencies as appropriate and may conduct public hearings to allow input 48.3from interested stakeholders. The working group must:48.4    (1) determine the state's jurisdiction regarding federal trade policy and trade 48.5agreements;48.6    (2) assess the state's current policies, procedures, roles and responsibilities for 48.7providing advice and consent on federal trade policy and trade agreements;48.8    (3) review the current means through which the state interacts with the Office of 48.9the United States Trade Representative (USTR) and Congress regarding trade policy and 48.10trade agreements;48.11    (4) inventory the federal trade policies and trade agreements that the state of 48.12Minnesota has formally approved or signed on to;48.13    (5) examine trade policy models established by other states;48.14    (6) develop recommendations for defining responsibilities and procedures for the 48.15state's role in federal trade policy and trade agreements; and48.16    (7) prepare legislative recommendations to implement the recommendations of 48.17the working group.48.18    The working group must report its findings and recommendations to the governor 48.19and the legislature by December 1, 2007.48.20    Sec. 37. STUDY; SAFE PATIENT HANDLING.48.21    (a) The commissioner of labor and industry shall study ways to require workers' 48.22compensation insurers to recognize compliance with Minnesota Statutes, section 48.23182.6553, in the workers' compensation premiums of health care and long-term care 48.24facilities. The commissioner shall report by January 15, 2008, the results of the study 48.25to the chairs of the policy committees of the legislature with primary jurisdiction over 48.26workers' compensation issues.48.27    (b) By January 15, 2008, the commissioner must make recommendations to the 48.28legislature regarding funding sources available to health care facilities for safe patient 48.29handling programs and equipment, including, but not limited to, low interest loans, interest 48.30free loans, and federal, state, or county grants.48.31    Sec. 38. WORK GROUP; SAFE PATIENT HANDLING.48.32    The Minnesota State Council on Disability shall convene a work group comprised 48.33of representatives from the Minnesota Medical Association and other organizations 48.34representing clinics, disability advocates, and direct care workers, to do the following:49.1    (1) assess the current options for and use of safe patient handling equipment in 49.2unlicensed outpatient clinics, physician offices, and dental settings;49.3    (2) identify barriers to the use of safe patient handling equipment in these settings; 49.4and49.5    (3) define clinical settings that move patients to determine applicability of the Safe 49.6Patient Handling Act.49.7    The work group must report to the legislature by January 15, 2008, including 49.8reports to the chairs of the senate and house of representatives committees on workforce 49.9development.49.10    Sec. 39. EFFECT ON RULES.49.11    The commissioner of labor and industry shall amend Minnesota Rules, part 49.125200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner 49.13may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting 49.14the amendment required by this section.49.15    Sec. 40. PUBLIC FACILITIES AUTHORITY FUNDING.49.16    To the greatest practical extent, projects on the Public Facilities Authority's 2007 49.17intended use plan, the listings for which were based on the Pollution Control Agency's 49.182006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 49.19qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 49.20section 21, that could not be certified by the Pollution Control Agency by the applicable 49.21deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court 49.22issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to 49.23obtain the required certification from the Pollution Control Agency.49.24    Sec. 41. REPEALER.49.25Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.49.26ARTICLE 449.27LICENSING AND WAGES49.28    Section 1. [154.465] HAIR BRAIDING.49.29    Subdivision 1.Registration.Any person engaged in hair braiding solely for 49.30compensation as a profession, except persons licensed as cosmetologists, shall register 49.31with the Minnesota Board of Barber and Cosmetology Examiners in a form determined 49.32by the board.50.1    Subd. 2.Definition."Hair braiding" means a natural form of hair manipulation that 50.2results in tension on hair strands by beading, braiding, cornrowing, extending, lacing, 50.3locking, sewing, twisting, weaving, or wrapping human hair, natural fibers, synthetic 50.4fibers, and hair extensions into a variety of shapes, patterns, and textures predominantly by 50.5hand and by only using simple braiding devices, and maintenance thereof. Hair braiding 50.6includes what is commonly known as "African-style hair braiding" or "natural hair care" 50.7but is not limited to any particular cultural, ethnic, racial, or religious forms of hair styles. 50.8Hair braiding includes the making of customized wigs from natural hair, natural fibers, 50.9synthetic fibers, and hair extensions. Hair braiding includes the use of topical agents such 50.10as conditioners, gels, moisturizers, oils, pomades, and shampoos. Hair braiding does not 50.11involve the use of penetrating chemical hair treatments, chemical hair coloring agents, 50.12chemical hair straightening agents, chemical hair joining agents, permanent wave styles, 50.13or chemical hair bleaching agents applied to growing human hair. For purposes of this 50.14section, "simple hair braiding devices" means clips, combs, curlers, curling irons, hairpins, 50.15rollers, scissors, needles, thread, and hair binders including adhesives, if necessary, that 50.16are required solely for hair braiding.50.17    Subd. 3.Requirements.In order to qualify for initial registration, any person 50.18engaged in hair braiding solely for compensation as a profession shall satisfactorily 50.19complete instruction at either an accredited school or by an individual, except persons 50.20licensed as cosmetologists approved by the board. Instruction includes coursework 50.21covering the topics of health, safety, sanitation, and state laws related to cosmetology not 50.22to exceed 30 hours. The coursework is encouraged to be provided in a foreign language 50.23format and such availability shall be reported to and posted by the Minnesota Board 50.24of Barber and Cosmetology Examiners.50.25    Subd. 4.Curriculum.An accredited school or an individual approved by the board 50.26desiring to provide the coursework required under subdivision 3 shall have curriculum in 50.27place by January 1, 2008.50.28EFFECTIVE DATE.This section is effective July 1, 2008, except subdivision 4 is 50.29effective the day following final enactment.50.30    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:50.31    Subdivision 1. Examination of records. The commissioner may enter during 50.32reasonable office hours or upon request and inspect the place of business or employment of 50.33any employer of employees working in the state, to examine and inspect books, registers, 50.34payrolls, and other records of any employer that in any way relate to wages, hours, and 50.35other conditions of employment of any employees. The commissioner may transcribe any 51.1or all of the books, registers, payrolls, and other records as the commissioner deems 51.2necessary or appropriate and may question the employees to ascertain compliance with 51.3sections 
         177.21 to 
         177.35 177.435. The commissioner may investigate wage claims or 51.4complaints by an employee against an employer if the failure to pay a wage may violate 51.5Minnesota law or an order or rule of the department. 51.6    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:51.7    Subd. 4. Compliance orders. The commissioner may issue an order requiring an 51.8employer to comply with sections 
         177.21 to 
         177.35 177.435, 
         181.02, 
         181.03, 
         181.031, 51.9181.032
         , 
         181.101, 
         181.11, 
         181.12, 
         181.13, 
         181.14, 
         181.145, 
         181.15, and181.79, 181.932, 51.10and 181.9325, or with any rule promulgated under section 
         177.28. The department shall 51.11serve the order upon the employer or the employer's authorized representative in person or 51.12by certified mail at the employer's place of business. An employer who wishes to contest 51.13the order must file written notice of objection to the order with the commissioner within 51.1415 calendar days after being served with the order. A contested case proceeding must then 51.15be held in accordance with sections 
         14.57 to 
         14.69. If, within 15 calendar days after being 51.16served with the order, the employer fails to file a written notice of objection with the 51.17commissioner, the order becomes a final order of the commissioner. 51.18    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 5, is amended to read:51.19    Subd. 5. Civil actions.(a) The commissioner may bring an action in the district 51.20court where an employer resides or where the commissioner maintains an office to enforce 51.21or require compliance with orders issued under subdivision 4.51.22    (b) If the district court determines that a violation of section 181.932 or 181.9325 51.23occurred, the court may order any appropriate relief, including but not limited to 51.24reinstatement, back pay, restoration of lost service credit, if appropriate, compensatory 51.25damages, and the expungement of any adverse records of a state employee or applicant 51.26for state employment who was the subject of the alleged acts of misconduct, and any 51.27appropriate relief as described in section 181.936.51.28    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:51.29    Subd. 8. Court actions; suits brought by private parties. An employee may bring 51.30a civil action seeking redress for a violation or violations of sections 
         177.21 to 
         177.3551.31177.44 directly to district court. An employer who pays an employee less than the wages 51.32and overtime compensation to which the employee is entitled under sections 
         177.21 to 51.33177.35177.44 is liable to the employee for the full amount of the wages, gratuities, and 52.1overtime compensation, less any amount the employer is able to establish was actually 52.2paid to the employee and for an additional equal amount as liquidated damages. In 52.3addition, in an action under this subdivision the employee may seek damages and other 52.4appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement 52.5between the employee and the employer to work for less than the applicable wage is not 52.6a defense to the action. 52.7    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:52.8    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may 52.9be filed in the district court of the county wherein a violation or violations of sections 52.10177.21
          to 
         177.35177.44 are alleged to have been committed, where the respondent resides 52.11or has a principal place of business, or any other court of competent jurisdiction. The 52.12action may be brought by one or more employees. 52.13    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:52.14    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8, 52.15the court shall order an employer who is found to have committed a violation or violations 52.16of sections 
         177.21 to 
         177.35177.44 to pay to the employee or employees reasonable costs, 52.17disbursements, witness fees, and attorney fees. 52.18    Sec. 8. Minnesota Statutes 2006, section 177.27, is amended by adding a subdivision 52.19to read:52.20    Subd. 11.Investigation of certain complaints.(a) The commissioner shall conduct 52.21an investigation of any matter that alleges a violation of sections 181.932 and 181.9325. 52.22The identity of the person providing the information that initiated the investigation shall 52.23be classified as private data, pursuant to section 13.02, subdivision 12, except that the 52.24identity may be disclosed to a law enforcement agency that is conducting a criminal 52.25investigation of the matter.52.26    (b) For each investigation completed, if the commissioner determines that there is 52.27reasonable cause to believe that an employer has violated section 181.932 or 181.9325, 52.28the commissioner shall report the nature and details of the alleged violation to the head 52.29of the employing agency or the appropriate appointing authority. If appropriate, the 52.30commissioner shall report this information to the attorney general, the policy committees 52.31of the house of representatives and senate having jurisdiction over the subject involved, 52.32and to any other authority that the commissioner deems appropriate. In any case 52.33in which the commissioner submits a report of alleged violations to the head of the 53.1employing agency or appropriate appointing authority, that individual shall report to the 53.2commissioner with respect to any action taken by the individual regarding the activity, the 53.3first report being transmitted no later than 30 days after the date of the auditor's report, 53.4and monthly thereafter until final action has been taken.53.5    (c) This subdivision shall not limit any authority conferred upon the attorney general 53.6or other department or agency of government to investigate and prosecute any matter.53.7    (d) The commissioner shall have all the powers and authority described in this 53.8section to conduct investigations pursuant to this subdivision.53.9    Sec. 9. [177.275] INVESTIGATION PROCEDURE.53.10    (a) The commissioner shall initiate an investigation of a written complaint of 53.11reprisal or retaliation in public employment as prohibited by section 181.932 or 181.9325 53.12within ten working days of its submission. The commissioner shall complete findings 53.13of the investigation within 60 working days thereafter, and shall provide a copy of the 53.14findings to the complaining employee or applicant for employment and to the appropriate 53.15supervisor, manager, employee, or appointing authority. When the allegations contained 53.16in a complaint of reprisal or retaliation are the same as, or similar to, those contained in 53.17another appeal, the commissioner may consolidate the appeals into the most appropriate 53.18format. In these cases, the time limits described in this subdivision shall not apply.53.19    (b) If the commissioner finds that the supervisor, manager, employee, or appointing 53.20power retaliated against the complainant for engaging in protected whistle-blower 53.21activities, the commissioner may issue a compliance order under section 177.27, 53.22subdivision 4.53.23    (c) In order for the governor and the legislature to determine the need to continue 53.24or modify state personnel procedures as they relate to the investigations of reprisals or 53.25retaliation for the disclosure of information by public employees, the commissioner, by 53.26June 30 of each year, shall submit a report to the governor and the legislature regarding 53.27complaints filed, hearings held, and legal actions taken under this section.53.28    Sec. 10. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:53.29    Subdivision 1. General authority. The commissioner may adopt rules, including 53.30definitions of terms, to carry out the purposes of sections 
         177.21 to 
         177.35 177.44, to 53.31prevent the circumvention or evasion of those sections, and to safeguard the minimum 53.32wage and overtime rates established by sections 
         177.24 and 
         177.25. 54.1    Sec. 11. Minnesota Statutes 2006, section 177.30, is amended to read:54.2177.30 KEEPING RECORDS; PENALTY.54.3    Every employer subject to sections 
         177.21 to 
         177.35177.44 must make and keep a 54.4record of: 54.5    (1) the name, address, and occupation of each employee;54.6    (2) the rate of pay, and the amount paid each pay period to each employee;54.7    (3) the hours worked each day and each workweek by the employee; and54.8    (4) for each employer subject to sections 177.41 to 177.44, and while performing 54.9work on public works projects funded in whole or in part with state funds, the prevailing 54.10wage master job classification of each employee working on the project for each hour 54.11worked; and54.12    (4) (5) other information the commissioner finds necessary and appropriate to 54.13enforce sections 
         177.21 to 
         177.35. The records must be kept for three years in or near the 54.14premises where an employee works except each employer subject to sections 177.41 to 54.15177.44, and while performing work on public works projects funded in whole or in part 54.16with state funds, the records must be kept for three years after the contracting authority 54.17has made final payment on the public works project. 54.18    The commissioner may fine an employer up to $1,000 for each failure to maintain 54.19records as required by this section. This penalty is in addition to any penalties provided 54.20under section 
         177.32, subdivision 1. In determining the amount of a civil penalty under 54.21this subdivision, the appropriateness of such penalty to the size of the employer's business 54.22and the gravity of the violation shall be considered. 54.23    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:54.24    Subd. 3. Contract requirements. The contract must specifically state the prevailing 54.25wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also 54.26provide that the contracting authority may demand and the contractor or subcontractor 54.27shall furnish to the contracting authority, copies of any and all payrolls, and that the 54.28contracting authority may examine all records relating to wages paid laborers or mechanics 54.29on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision 54.30are in addition to any other requirements or authority set forth in other laws or rules for 54.31work to which sections 177.41 to 177.44 apply.54.32    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:54.33    Subd. 4. Determination by commissioner; posting; petition for reconsideration.54.34    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all 55.1trades and occupations required in any project must be ascertained before the state asks for 55.2bids. The commissioner of labor and industry shall investigate as necessary to ascertain 55.3the information. The commissionerEach contractor and subcontractor performing work 55.4on a public project shall keep the information posted on the project in at least one 55.5conspicuous place for the information of the employees working on the project. A person 55.6aggrieved by a final determination of the commissioner may petition the commissioner for 55.7reconsideration of findings. A person aggrieved by a decision of the commissioner after 55.8reconsideration may, within 20 days after the decision, petition the commissioner for a 55.9public hearing in the manner of a contested case under sections 
         14.57 to 
         14.61. 55.10    Sec. 14. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:55.11    Subd. 6. Examination of records; investigation by the department. The 55.12Department of Labor and Industry shall enforce this section. The department may 55.13demand, and the contractor and subcontractor shall furnish to the department, copies 55.14of any or all payrolls. The department may examine all records relating to wages paid 55.15laborers or mechanics on work to which sections 
         177.41 to 
         177.44 apply. The department 55.16shall employ at least three investigators to perform on-site project reviews, receive and 55.17investigate complaints of violations of this section, and conduct training and outreach to 55.18contractors and contracting authorities for public works projects financed in whole or 55.19in part with state funds.55.20    Sec. 15. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision 55.21to read:55.22    Subd. 6a.Prevailing wage violations.Upon issuing a compliance order to an 55.23employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to 55.24177.44, the commissioner shall issue a withholding order to the contracting authority 55.25ordering the contracting authority to withhold payment of sufficient sum to the prime 55.26or general contractor on the project to satisfy the back wages assessed or otherwise 55.27cure the violation, and the contracting authority must withhold the sum ordered until 55.28the compliance order has become a final order of the commissioner and has been fully 55.29paid or otherwise resolved by the employer.55.30    During an investigation of a violation of sections 177.41 to 177.44 which the 55.31commissioner reasonably determines is likely to result in the finding of a violation of 55.32sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section 55.33177.27, subdivision 4, the commissioner may notify the contracting authority of the 55.34determination and the amount expected to be assessed and the contracting authority shall 56.1give the commissioner 90 days' prior notice of the date the contracting authority intends to 56.2make final payment.56.3    Sec. 16. [181.723] INDEPENDENT CONTRACTORS.56.4    Subdivision 1. Definitions.The definitions in this subdivision apply to this section.56.5    (a) "Person" means any individual, limited liability corporation, corporation, 56.6partnership, incorporated or unincorporated association, sole proprietorship, joint stock 56.7company, or any other legal or commercial entity.56.8    (b) "Department" means the Department of Labor and Industry.56.9    (c) "Commissioner" means the commissioner of labor and industry or a duly 56.10designated representative of the commissioner who is either an employee of the 56.11Department of Labor and Industry or person working under contract with the Department 56.12of Labor and Industry.56.13    (d) "Individual" means a human being.56.14    (e) "Day" means calendar day unless otherwise provided.56.15    (f) "Knowingly" means knew or could have known with the exercise of reasonable 56.16diligence.56.17    (g) "Document" or "documents" includes papers; books; records; memoranda; data; 56.18contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 56.19records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars 56.20maintained in any form or manner.56.21    Subd. 2.Limited application.(a) Except as otherwise provided in paragraph (b), 56.22this section only applies to individuals performing public or private sector commercial or 56.23residential building construction or improvement services as defined in section 326.83.56.24(b) Subdivisions 1 to 6; 7, paragraph (a), clauses (1) to (4); and 8 to 16 do not 56.25apply to individuals licensed under section 326.84 as a residential building contractor 56.26or residential remodeler.56.27    Subd. 3.Employee-employer relationship.Except as provided in subdivisions 56.282 and 4, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, 56.29an individual who performs services for a person that are in the course of the person's 56.30trade, business, profession, or occupation is an employee of that person and that person 56.31is an employer of the individual.56.32    Subd. 4.Independent contractor.An individual is an independent contractor and 56.33not an employee of the person for whom the individual is performing services in the course 56.34of the person's trade, business, profession, or occupation only if (a) the individual holds 56.35a current independent contractor exemption certificate issued by the commissioner; and 57.1(b) the individual is performing services for the person under the independent contractor 57.2exemption certificate as provided in subdivision 6. The requirements in clauses (a) and (b) 57.3must be met in order to qualify as an independent contractor and not as an employee of 57.4the person for whom the individual is performing services in the course of the person's 57.5trade, business, profession, or occupation.57.6    Subd. 5.Application.To obtain an independent contractor exemption certificate, 57.7the individual must submit, in the manner prescribed by the commissioner, a complete 57.8application and the certificate fee required under subdivision 14.57.9    (a) A complete application must include all of the following information:57.10    (1) the individual's full name;57.11    (2) the individual's residence address and telephone number;57.12    (3) the individual's business name, address, and telephone number;57.13    (4) the services for which the individual is seeking an independent contractor 57.14exemption certificate;57.15    (5) the individual's Social Security number;57.16    (6) the individual's or the individual's business federal employer identification 57.17number, if a number has been issued to the individual or the individual's business;57.18    (7) any information or documentation that the commissioner requires by rule that 57.19will assist the department in determining whether to grant or deny the individual's 57.20application; and57.21    (8) The individual's sworn statement that the individual meets all of the following 57.22conditions:57.23    (i) the individual maintains a separate business with the individual's own office, 57.24equipment, materials, and other facilities;57.25    (ii) the individual holds or has applied for a federal employer identification number 57.26or has filed business or self-employment income tax returns with the federal Internal 57.27Revenue Service if the person has performed services in the previous year for which the 57.28individual is seeking the independent contractor exemption certificate;57.29    (iii) the individual operates under contracts to perform specific services for specific 57.30amounts of money and under which the individual controls the means of performing the 57.31services;57.32    (iv) the individual incurs the main expenses related to the service that the individual 57.33performs under contract;57.34    (v) the individual is responsible for the satisfactory completion of services that the 57.35individual contracts to perform and is liable for a failure to complete the service;58.1    (vi) the individual receives compensation for service performed under a contract on 58.2a commission or per-job or competitive bid basis and not on any other basis;58.3    (vii) the individual may realize a profit or suffer a loss under contracts to perform 58.4service;58.5    (viii) the individual has continuing or recurring business liabilities or obligations; and58.6    (ix) the success or failure of the individual's business depends on the relationship of 58.7business receipts to expenditures.58.8    (b) Within 30 days of receiving a complete application and the certificate fee, the 58.9commissioner must either grant or deny the application. The commissioner may deny 58.10an application for an independent contractor exemption certificate if the individual has 58.11not submitted a complete application and certificate fee or if the individual does not 58.12meet all of the conditions for holding the independent contractor exemption certificate. 58.13The commissioner may revoke an independent contractor exemption certificate if the 58.14commissioner determines that the individual no longer meets all of the conditions for 58.15holding the independent contractor exemption certificate, commits any of the actions 58.16set out in subdivision 7, or fails to cooperate with a department investigation into the 58.17continued validity of the individual's certificate. Once issued, an independent contractor 58.18exemption certificate remains in effect for two years unless:58.19    (1) revoked by the commissioner; or58.20    (2) canceled by the individual.58.21    (c) If the department denies an individual's original or renewal application for 58.22an independent contractor exemption certificate or revokes an independent contractor 58.23exemption certificate, the commissioner shall issue to the individual an order denying or 58.24revoking the certificate. The commissioner may issue an administrative penalty order to 58.25an individual or person who commits any of the actions set out in subdivision 7.58.26    (d) An individual or person to whom the commissioner issues an order under 58.27paragraph (c) shall have 30 days after service of the order to request a hearing. The request 58.28for hearing must be in writing and must be served on or faxed to the commissioner at the 58.29address or fax number specified in the order by the 30th day after service of the order. 58.30If the individual does not request a hearing or if the individual's request for a hearing is 58.31not served on or faxed to the commissioner by the 30th day after service of the order, the 58.32order shall become a final order of the commissioner and will not be subject to review 58.33by any court or agency. The date on which a request for hearing is served by mail shall 58.34be the postmark date on the envelope in which the request for hearing is mailed. If the 58.35individual serves or faxes a timely request for hearing, the hearing shall be a contested 58.36case hearing and shall be held in accordance with chapter 14.59.1    Subd. 6.Qualifications for exemption certificate.An individual is performing 59.2services for a person under an independent contractor exemption certificate if:59.3    (a) the individual is performing services listed on the individual's independent 59.4contractor exemption certificate;59.5    (b) at the time the individual is performing services listed on the individual's 59.6independent contractor exemption certificate, the individual meets all of the following 59.7conditions:59.8    (1) the individual maintains a separate business with the individual's own office, 59.9equipment, materials, and other facilities;59.10    (2) the individual holds or has applied for a federal employer identification number 59.11or has filed business or self-employment income tax returns with the federal Internal 59.12Revenue Service if the individual performed services in the previous year for which the 59.13individual has the independent contractor exemption certificate;59.14    (3) the individual is operating under contract to perform the specific services for 59.15the person for specific amounts of money and under which the individual controls the 59.16means of performing the services;59.17    (4) the individual is incurring the main expenses related to the services that the 59.18individual is performing for the person under the contract;59.19    (5) the individual is responsible for the satisfactory completion of the services 59.20that the individual has contracted to perform for the person and is liable for a failure 59.21to complete the services;59.22    (6) the individual receives compensation from the person for the services performed 59.23under the contract on a commission or per-job or competitive bid basis and not on any 59.24other basis;59.25    (7) the individual may realize a profit or suffers a loss under the contract to perform 59.26services for the person;59.27    (8) the individual has continuing or recurring business liabilities or obligations; and59.28    (9) the success or failure of the individual's business depends on the relationship of 59.29business receipts to expenditures.59.30    Subd. 7.Prohibited activities.(a) An individual shall not:59.31    (1) perform work as an independent contractor who meets the qualifications under 59.32subdivision 6, without first obtaining from the department an independent contractor 59.33exemption certificate;59.34    (2) perform work as an independent contractor when the department has denied or 59.35revoked the individual's independent contractor exemption certificate;60.1    (3) transfer to another individual or allow another individual to use the individual's 60.2independent contractor exemption certificate;60.3    (4) alter or falsify an independent contractor exemption certificate;60.4    (5) misrepresent the individual's status as an independent contractor; or60.5    (6) make a false material statement, representation, or certification; omit material 60.6information; or alter, conceal, or fail to file a document required by this section or any rule 60.7promulgated by the commissioner under rulemaking authority set out in this section.60.8    (b) A person shall not:60.9    (1) require an individual through coercion, misrepresentation, or fraudulent means to 60.10adopt independent contractor status;60.11    (2) knowingly misrepresent that an individual who has not been issued an 60.12independent contractor exemption certificate or is not performing services for the person 60.13under an independent contractor exemption certificate is an independent contractor; or60.14    (3) make a false material statement, representation, or certification; omit material 60.15information; or alter, conceal, or fail to file a document required by this section or any rule 60.16promulgated by the commissioner under rulemaking authority set out in this section.60.17    (c) A person for whom an individual is performing services must obtain a copy of the 60.18individual's independent contractor exemption certificate before services may commence. 60.19A copy of the independent contractor exemption certificate must be retained for five years 60.20from the date of receipt by the person for whom an individual is performing services.60.21    Subd. 8.Remedies. An individual or person who violates any provision of 60.22subdivision 7 is subject to a penalty to be assessed by the department of up to $5,000 for 60.23each violation. The department shall deposit penalties in the assigned risk safety account.60.24    Subd. 9.Commissioner's powers.(a) In order to carry out the purposes of this 60.25section, the commissioner may:60.26    (1) administer oaths and affirmations, certify official acts, interview, question, take 60.27oral or written statements, and take depositions;60.28    (2) request, examine, take possession of, photograph, record, and copy any 60.29documents, equipment, or materials;60.30    (3) at a time and place indicated by the commissioner, request persons to appear 60.31before the commissioner to give testimony and produce documents, equipment, or 60.32materials;60.33    (4) issue subpoenas to compel persons to appear before the commissioner to give 60.34testimony and produce documents, equipment, or materials; and61.1    (5) with or without notice, enter without delay upon any property, public or private, 61.2for the purpose of taking any action authorized under this subdivision or the applicable 61.3law, including obtaining information or conducting inspections or investigations.61.4    (b) Persons requested by the commissioner to give testimony or produce documents, 61.5equipment, or materials shall respond within the time and in the manner specified by the 61.6commissioner. If no time to respond is specified in the request, then a response shall be 61.7submitted within 30 days of the commissioner's service of the request.61.8    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property 61.9owner's representative, or lessee's representative to permit the commissioner's entry onto 61.10property as provided in paragraph (a), the commissioner may apply for an administrative 61.11inspection order in the Ramsey County District Court or, at the commissioner's discretion, 61.12in the district court in the county in which the property is located. The commissioner may 61.13anticipate that a property owner or lessee will refuse entry if the property owner, lessee, 61.14property owner's representative, or lessee's representative has refused to permit entry on a 61.15prior occasion or has informed the commissioner that entry will be refused. Upon showing 61.16of administrative probable cause by the commissioner, the district court shall issue an 61.17administrative inspection order that compels the property owner or lessee to permit the 61.18commissioner to enter the property for the purposes specified in paragraph (a).61.19    (d) Upon the application of the commissioner, a district court shall treat the failure of 61.20any person to obey a subpoena lawfully issued by the commissioner under this subdivision 61.21as a contempt of court.61.22    Subd. 10.Notice requirements.Unless otherwise specified, service of a document 61.23on a person under this section may be by mail, by personal service, or in accordance with 61.24any consent to service filed with the commissioner. Service by mail shall be accomplished 61.25in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service 61.26shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, 61.27subpart 3.61.28    Subd. 11.Facsimile; timely service.When this section permits a request for 61.29hearing to be served by facsimile on the commissioner, the facsimile shall not exceed 15 61.30pages in length. The request shall be considered timely served if the facsimile is received 61.31by the commissioner, at the facsimile number identified by the commissioner in the order, 61.32no later than 4:30 p.m. central time on the last day permitted for faxing the request. 61.33Where the quality or authenticity of the faxed request is at issue, the commissioner 61.34may require the original request to be filed. Where the commissioner has not identified 61.35quality or authenticity of the faxed request as an issue and the request has been faxed in 62.1accordance with this subdivision, the person faxing the request does not need to file the 62.2original request with the commissioner.62.3    Subd. 12.Time period computation.In computing any period of time prescribed 62.4or allowed by this section, the day of the act, event, or default from which the designated 62.5period of time begins to run shall not be included. The last day of the period so computed 62.6shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the 62.7period runs until the next day which is not a Saturday, Sunday, or legal holiday.62.8    Subd. 13.Rulemaking.The commissioner may, in consultation with the 62.9commissioner of revenue and the commissioner of employment and economic 62.10development, adopt, amend, suspend, and repeal rules under the rulemaking provisions 62.11of chapter 14 that relate to the commissioner's responsibilities under this section. This 62.12subdivision is effective the day following final enactment.62.13    Subd. 14.Fee.The certificate fee for the original application and for the renewal of 62.14an independent contractor exemption certificate shall be $150. Fees collected under this 62.15subdivision are deposited in the general fund. 62.16    Subd. 15.Notice to commissioner; review by commissioner of revenue.When 62.17the commissioner has reason to believe that an individual who holds a certificate has failed 62.18to maintain all the conditions required by subdivision 3 or is not performing services for a 62.19person under the independent contractor exemption certificate, the commissioner must 62.20notify the commissioner of revenue and the commissioner of employment and economic 62.21development. Upon receipt of notification from the commissioner that an individual who 62.22holds a certificate has failed to maintain all the conditions required by subdivision 3 62.23or is not performing services for a person under the independent contractor exemption 62.24certificate, the commissioner of revenue must review the information returns required 62.25under section 6041A of the Internal Revenue Code. The commissioner of revenue shall 62.26also review the submitted certification that is applicable to returns audited or investigated 62.27under section 289A.35.62.28    Subd. 16.Data classified.Certificates containing the certificate number, the name 62.29of the certificate holder, and the name of the business, issued by the commissioner, 62.30are public data. Applications and required documentation submitted by an individual 62.31is private data on an individual. Upon request of the Department of Revenue or the 62.32Department of Employment and Economic Development, the commissioner may release 62.33to the Department of Revenue and the Department of Employment and Economic 62.34Development applications and required documentation submitted by individuals and 62.35investigative data that relates to the department's issuance or denial of applications and the 63.1department's revocations of certificates. Except as otherwise provided by this subdivision, 63.2the department's investigative data shall be classified as provided in chapter 13.63.3EFFECTIVE DATE.This section is effective July 1, 2008.63.4    Sec. 17. [181.724] PERFORMERS IN RECORDED MEDIA INDUSTRY.63.5    Subdivision 1.Definitions.The definitions in this subdivision apply to section 63.6181.724.63.7    (a) "Performer" means actor, announcer, singer, dancer, narrator, stunt-person, extra, 63.8or any other individual generically or customarily referred to as talent in the recorded 63.9media industry.63.10    (b) "Recorded media industry" means radio or television commercial production, 63.11nonbroadcast audio or video production, sound recording, audio or video production for 63.12the internet, or any other recording technology.63.13    (c) "Individual" means a human being.63.14    (d) "Person" means any individual, limited liability corporation, corporation, 63.15partnership, incorporated or unincorporated association, sole proprietorship, joint stock 63.16company, or any other legal or commercial entity.63.17    Subd. 2.Limited application.This section applies only to individuals who 63.18are performers in the recorded media industry. This section does not apply to live 63.19performances.63.20    Subd. 3.Employee-employer relationship.For the purposes of chapters 176, 63.21177, 181A, 182, and 268, an individual who provides services as a performer in the 63.22recorded media industry for a person that are in the course of the person's trade, business, 63.23profession, or occupation is an employee of that person and that person is an employer of 63.24the individual.63.25    Subd. 4.Civil remedy.An individual who has been injured by a violation of this 63.26section may bring a civil action for damages against the violator. If the individual is 63.27an employee of the violator of this section, the employee's representative, as defined in 63.28section 179.01, subdivision 5, may bring a civil action for damages against the violator on 63.29behalf of the employee. The court may award attorney fees, costs, and disbursement to an 63.30individual recovering under this section.63.31    Subd. 5.Reporting of violations.Any court finding that a violation of this section 63.32has occurred shall transmit a copy of its findings of fact and conclusions of law to the 63.33commissioner of labor and industry. The commissioner of labor and industry shall report 63.34the finding to relevant state and federal agencies, including the commissioner of commerce, 64.1the commissioner of employment and economic development, the commissioner of 64.2revenue, the federal Internal Revenue Service, and the United States Department of Labor.64.3EFFECTIVE DATE.This section is effective January 1, 2008.64.4    Sec. 18. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:64.5    Subdivision 1. Prohibited action. An employer shall not discharge, discipline, 64.6threaten, otherwise discriminate against, or penalize an employee regarding the employee's 64.7compensation, terms, conditions, location, or privileges of employment because:64.8    (a) the employee, or a person acting on behalf of an employee, in good faith, reports 64.9a violation or suspected violation of any federal or state law or rule adopted pursuant 64.10to law to an employer or to any governmental body or law enforcement official and 64.11the alleged violation involves a matter of public concern, including, but not limited to, 64.12violations that create a specific danger to the public health, safety, or environment;64.13    (b) the employee is requested by a public body or office to participate in an 64.14investigation, hearing, inquiry;64.15    (c) the employee refuses an employer's order to perform an action that the employee 64.16has an objective basis in fact to believe violates any state or federal law or rule or 64.17regulation adopted pursuant to law which violation the employee reasonably believes 64.18is a matter of public concern, including, but not limited to, violations that create a 64.19specific danger to the public health, safety, or environment, and the employee informs the 64.20employer that the order is being refused for that reason; or64.21    (d) the employee, in good faith, reports a situation in which the quality of health care 64.22services provided by a health care facility, organization, or health care provider violates a 64.23standard established by federal or state law or a professionally recognized national clinical 64.24or ethical standard and potentially places the public at risk of harm.;64.25    (e) a public employee refuses to alter, dilute, or suppress the objective representation 64.26or communication of scientific or technical data or findings, including but not limited to, 64.27findings of economic or environmental impact, or findings indicating consequences for 64.28the public's health or safety; or64.29    (f) a public employee communicates the findings of a scientific or technical study 64.30that the employee, in good faith, believes to be truthful and accurate, including reports to a 64.31governmental body or law enforcement official.64.32The disclosures protected pursuant to this section do not authorize the disclosure of trade 64.33secret information otherwise protected by law.65.1    Sec. 19. [181.9325] USE OF AUTHORITY TO INFLUENCE OR INTERFERE 65.2WITH DISCLOSURE OF INFORMATION.65.3    (a) A public employer may not directly or indirectly use or attempt to use the 65.4employer's official authority or influence for the purpose of intimidating, threatening, 65.5coercing, or attempting to intimidate, threaten, or coerce any person for the purpose of 65.6interfering with the rights described in section 181.932, or for the purpose of persuading 65.7the person to waive or disclaim any other legal rights related to the person's employment.65.8    (b) For purposes of this section, "use of official authority or influence" includes: 65.9promising to confer, or conferring, any benefit; effecting, or threatening to effect, any 65.10reprisal; or taking, or directing others to take, or recommending, processing, or approving, 65.11any personnel action, including but not limited to appointment, promotion, transfer, 65.12assignment, performance evaluation, suspension, or other disciplinary action.65.13    Sec. 20. Minnesota Statutes 2006, section 181.935, is amended to read:65.14181.935 INDIVIDUAL REMEDIES; PENALTY.65.15    (a) In addition to any remedies otherwise provided by law, an employee injured 65.16by a violation of section 
         181.932or 181.9325 may bring a civil action to recover any 65.17and all damages recoverable at law, together with costs and disbursements, including 65.18reasonable attorney's fees, and may receive such injunctive and other equitable relief as 65.19determined by the court. 65.20    (b) An employer who failed to notify, as required under section 
         181.933 or 
         181.934, 65.21an employee injured by a violation of section 
         181.932 is subject to a civil penalty of $25 65.22per day per injured employee not to exceed $750 per injured employee. 65.23    Sec. 21. [181.936] REPRISALS FOR DISCLOSURE OF IMPROPER 65.24GOVERNMENTAL ACTIVITIES; COMPLAINT PROCEDURE; PENALTIES.65.25    (a) A public employee or applicant for public employment who files a written 65.26complaint with the employee's or applicant's supervisor, manager, or the appointing 65.27power alleging actual or attempted acts of reprisal, retaliation, threats, coercion, or 65.28similar improper acts prohibited by section 181.9325, may also file a copy of the written 65.29complaint with the commissioner of labor and industry, together with a sworn statement 65.30that the contents of the written complaint are true, or are believed by the affiant to be true, 65.31under penalty of perjury. The complaint filed with the commissioner shall be filed within 65.3212 months of the most recent act of reprisal complained about.65.33    (b) Any person who intentionally engages in acts of reprisal, retaliation, threats, 65.34coercion, or similar acts against a public employee or applicant for public employment 66.1for having made a protected disclosure under section 181.932, is subject to a fine not to 66.2exceed $10,000 and imprisonment in the county jail for a period not to exceed one year.66.3    (c) In addition to all other penalties provided by law, any person who intentionally 66.4engages in acts of reprisal, retaliation, threats, coercion, or similar acts against a public 66.5employee or applicant for public employment for having made a protected disclosure shall 66.6be liable in an action for damages brought against the person by the injured party. Punitive 66.7damages may be awarded by the court where the acts of the offending party are proven to 66.8be malicious. Where liability has been established, the injured party shall also be entitled 66.9to reasonable attorney fees as provided by law. However, any action for damages shall not 66.10be available to the injured party unless the injured party has first filed a complaint with the 66.11commissioner of labor and industry under paragraph (a), and the department has issued, or 66.12failed to issue, findings under section 177.275.66.13    (d) This section is not intended to prevent an appointing power, manager, or 66.14supervisor from taking, directing others to take, recommending, or approving any 66.15personnel action or from taking or failing to take a personnel action with respect to any 66.16public employee or applicant for public employment if the appointing power, manager, or 66.17supervisor reasonably believes any action or inaction is justified on the basis of evidence 66.18separate and apart from the fact that the person has made a protected disclosure under 66.19section 181.932.66.20    (e) In any civil action or administrative proceeding, once it has been demonstrated 66.21by a preponderance of evidence that an activity protected by sections 177.27, 177.275, 66.22181.932, and 181.9325 was a contributing factor in the alleged retaliation against a former, 66.23current, or prospective employee, the burden of proof shall be on the supervisor, manager, 66.24or appointing power to demonstrate by clear and convincing evidence that the alleged 66.25action would have occurred for legitimate, independent reasons even if the employee had 66.26not engaged in protected disclosures or refused an illegal order. If the supervisor, manager, 66.27or appointing power fails to meet this burden of proof in an adverse action against the 66.28employee in any administrative review, challenge, or adjudication in which retaliation 66.29has been demonstrated to be a contributing factor, the employee shall have a complete 66.30affirmative defense in the adverse action.66.31    (f) Nothing in sections 177.27, 177.275, 181.932, and 181.9325 shall be deemed to 66.32diminish the rights, privileges, or remedies of any employee under any other federal or 66.33state law or under any employment contract or collective bargaining agreement.66.34    Sec. 22. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:67.1    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who, 67.2during some part of the period of the sales representative agreement:67.3    (1) is a resident of Minnesota or maintains that person's principal place of business 67.4in Minnesota; or67.5    (2) whose geographical territory specified in the sales representative agreement 67.6includes part or all of Minnesota.67.7    (b) To be effective, any demand for arbitration under subdivision 5 must be made 67.8in writing and delivered to the principal on or before one year after the effective date of 67.9the termination of the agreement.67.10    (c) A provision in any contract between a sales representative dealing in plumbing 67.11equipment or supplies and a principal purporting to waive any provision of this act, 67.12whether by express waiver or by a provision stipulating that the contract is subject to the 67.13laws of another state, shall be void.67.14    Sec. 23. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:67.15    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by 67.16rule, prescribe minimum standards which shall be uniform, and which standards shall 67.17thereafter be effective for all new plumbing installations, including additions, extensions, 67.18alterations, and replacements connected with any water or sewage disposal system owned 67.19or operated by or for any municipality, institution, factory, office building, hotel, apartment 67.20building, or any other place of business regardless of location or the population of the 67.21city or town in which located. Notwithstanding the provisions of Minnesota Rules, part 67.224715.3130, as they apply to review of plans and specifications, the commissioner may 67.23allow plumbing construction, alteration, or extension to proceed without approval of the 67.24plans or specifications by the commissioner.67.25    Except for powers granted to the Plumbing Board, the commissioner of labor and 67.26industry shall administer the provisions of sections 
         326.37 to 
         326.45 and for such purposes 67.27may employ plumbing inspectors and other assistants.67.28    Sec. 24. Minnesota Statutes 2006, section 326.37, is amended by adding a subdivision 67.29to read:67.30    Subd. 4.Air admittance valves and water-free urinals prohibited.(a) 67.31Mechanical devices and fittings with internal moving parts are prohibited from installation 67.32in plumbing venting systems.67.33    (b) All urinals covered under the jurisdiction of the state plumbing code must have a 67.34water flush device with a volume of not more than one gallon per use.68.1    Sec. 25. [326.372] PLUMBING BOARD.68.2    Subdivision 1.Composition.(a) The Plumbing Board shall consist of 12 voting 68.3members who must be residents of the state, appointed by the governor, and confirmed 68.4by the senate. The commissioner of labor and industry or the commissioner's designee 68.5shall be a voting member. The first appointed board members shall serve an initial term 68.6of four years, except where designated otherwise. The governor shall then reappoint the 68.7current members or appoint replacement members, all or in part, to subsequent three-year 68.8terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 68.9occurring with less than six months time remaining in the term shall be filled for the 68.10existing term and the following three-year term. Of the 11 appointed members, the 68.11composition shall be as follows:68.12    (1) two members shall be municipal plumbing inspectors, one from the seven-county 68.13metro area and one from greater Minnesota;68.14    (2) one member shall be a licensed mechanical engineer;68.15    (3) two members serving an initial term of three years shall be plumbing contractors 68.16or the representative of the contractor, engaged in a commercial scope of plumbing 68.17contracting, one from the metropolitan area and one from greater Minnesota;68.18    (4) two members serving an initial term of three years shall be plumbing contractors 68.19or their representatives, engaged in the residential scope of plumbing contracting, one 68.20from the metro area and one from greater Minnesota; 68.21    (5) two members serving an initial term of two years shall be plumbing 68.22journeypersons engaged in a commercial scope of plumbing systems installation, one 68.23from the metro area and one from greater Minnesota; and68.24    (6) two members serving an initial term of two years shall be plumbing 68.25journeypersons engaged in a residential scope of plumbing systems installation, one from 68.26the metro area and one from greater Minnesota.68.27    (b) Except for the licensed mechanical engineer, all persons appointed to the 68.28council must possess a current Minnesota plumbing license and maintain the license for 68.29the duration of their term.68.30    Subd. 2.Powers.(a) The board shall have the power to:68.31    (1) elect its chair;68.32    (2) specify the plumbing code that must be followed in this state;68.33    (3) maintain a review process to make determinations regarding any complaints, 68.34code amendments, code compliance, and code clarifications filed with the board;68.35    (4) adopt rules necessary for the regulation and licensing of contractors, 68.36journeypersons, apprentices, and other persons engaged in the design, installation, and 69.1alteration of plumbing systems that would include the issuing, renewing, revoking, 69.2refusing to renew, and suspending a plumbing license, except for persons licensed under 69.3sections 326.02 to 326.15;69.4    (5) adopt rules necessary for continuing education for individuals regulated and 69.5licensed under this section; 69.6    (6) make recommendations to the commissioner regarding educational requirements 69.7for plumbing inspectors; and 69.8    (7) pay expenses deemed necessary in the performance of board duties, including: 69.9    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 69.10subdivision 2; and 69.11    (ii) per diem and expenses for its members as provided in section 15.0575, 69.12subdivision 3.69.13    (b) Requests under the review process in paragraph (a), clause (3), may originate 69.14with the municipal inspectors, the plumbing contractors or their employees, and other 69.15persons engaged in the design, installation, and alteration of plumbing systems. The board 69.16shall make its findings known to all parties and the commissioner of labor and industry 69.17within the time period specified by the board.69.18    Subd. 3.Fees and finances.The board shall submit an annual budget to the 69.19commissioner of labor and industry. The commissioner shall collect fees under section 69.20326.42 necessary for the operation and continuance of the board. The commissioner is 69.21responsible for the enforcement of the codes and licensing requirements determined by 69.22the board. The board shall recommend the fees for licenses and certification under this 69.23section. The commissioner of finance shall make a quarterly certification of the amount 69.24necessary to pay expenses required for operation of the board under subdivision 2, 69.25paragraph (a), clause (6). The certified amount is appropriated in fiscal years 2008 and 69.262009 to the board for those purposes from the fees collected under section 326.42.69.27    Subd. 4.Transfer of authority; Plumbing Board.The authority of the 69.28commissioners of health and labor and industry to adopt rules relating to plumbers is 69.29transferred to the Plumbing Board. Licenses and permits currently in effect remain in 69.30effect according to their terms unless affected by board action. Rules adopted by the 69.31commissioner of health or labor and industry remain in effect until amended or repealed 69.32by the board. The commissioner of administration may not use the authority under section 69.3316B.37 to modify the transfers of authority in this act.69.34    Subd. 5.First meeting; appointments for Plumbing Board.The governor must 69.35complete the appointments required by section 326.372 no later than July 1, 2007. The 70.1commissioner of labor and industry shall convene the first meeting of the Plumbing Board 70.2no later than September 1, 2007.70.3    Sec. 26. Minnesota Statutes 2006, section 326.38, is amended to read:70.4326.38 LOCAL REGULATIONS.70.5    Any city having a system of waterworks or sewerage, or any town in which reside 70.6over 5,000 people exclusive of any statutory cities located therein, or the metropolitan 70.7airports commission, may, by ordinance, adopt local regulations providing for plumbing 70.8permits, bonds, approval of plans, and inspections of plumbing, which regulations are 70.9not in conflict with the plumbing standards on the same subject prescribed by the state 70.10commissioner of health Plumbing Board. No city or such town shall prohibit plumbers 70.11licensed by the state commissioner of healthlabor and industry from engaging in or 70.12working at the business, except cities and statutory cities which, prior to April 21, 1933, 70.13by ordinance required the licensing of plumbers. No city or town may require a license 70.14for persons performing building sewer or water service installation who have completed 70.15pipe laying training as prescribed by the commissioner of labor and industry. Any city 70.16by ordinance may prescribe regulations, reasonable standards, and inspections and grant 70.17permits to any person, firm, or corporation engaged in the business of installing water 70.18softeners, who is not licensed as a master plumber or journeyman plumber by the state 70.19commissioner of health labor and industry, to connect water softening and water filtering 70.20equipment to private residence water distribution systems, where provision has been 70.21previously made therefor and openings left for that purpose or by use of cold water 70.22connections to a domestic water heater; where it is not necessary to rearrange, make any 70.23extension or alteration of, or addition to any pipe, fixture or plumbing connected with 70.24the water system except to connect the water softener, and provided the connections so 70.25made comply with minimum standards prescribed by the state commissioner of health70.26Plumbing Board.70.27    Sec. 27. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:70.28    Subdivision 1. License required; master and journeyman plumbers.In any city 70.29now or hereafter having 5,000 or more population, according to the last federal census, 70.30and having a system of waterworks or sewerage,(a) No person, firm, or corporation shall 70.31engage in or work at the business of a master plumber or, restricted master plumber,70.32journeyman plumber, and restricted journeyman plumber unless licensed to do so by the 70.33state commissioner of healthlabor and industry. A license is not required for persons 70.34performing building sewer or water service installation who have completed pipe laying 71.1training as prescribed by the commissioner of labor and industry. A master plumber may 71.2also work as a journeyman plumber, a restricted journeyman plumber, and a restricted 71.3master plumber. A journeyman plumber may also work as a restricted journeyman 71.4plumber. Anyone not so licensed may do plumbing work which complies with the 71.5provisions of the minimum standard prescribed by the state commissioner of health71.6Plumbing Board on premises or that part of premises owned and actually occupied by the 71.7worker as a residence, unless otherwise forbidden to do so by a local ordinance.71.8    In any such city(b) No person, firm, or corporation shall engage in the business of 71.9installing plumbing nor install plumbing in connection with the dealing in and selling 71.10of plumbing material and supplies unless at all times a licensed master plumber, or in 71.11cities and towns with a population of fewer than 5,000 according to the federal census a 71.12restricted master plumber, who shall be responsible for proper installation, is in charge 71.13of the plumbing work of the person, firm, or corporation.71.14    The Department of HealthPlumbing Board shall prescribe rules, not inconsistent 71.15herewith, for the examination and licensing of plumbers.71.16    Sec. 28. Minnesota Statutes 2006, section 326.401, subdivision 2, is amended to read:71.17    Subd. 2. Journeyman exam. A plumber's apprentice who has completed four years 71.18of practical plumbing experience is eligible to take the journeyman plumbing examination. 71.19Up to 24 months of practical plumbing experience prior to registration as an apprentice 71.20may be applied to the four-year experience requirement. However, none of this practical 71.21plumbing experience may be applied if the person did not have any practical plumbing 71.22experience in the 12-month period immediately prior to registration. The commissioner71.23Plumbing Board may adopt rules to evaluate whether the person's past practical plumbing 71.24experience is applicable in preparing for the journeyman's examination. If two years 71.25after completing the training the person has not taken the examination, the four years 71.26of experience shall be forfeited.71.27    The commissioner may allow an extension of the two-year period for taking the 71.28exam for cases of hardship or other appropriate circumstances.71.29    Sec. 29. [326.402] RESTRICTED PLUMBER LICENSE.71.30    Subdivision 1.Licensure.The commissioner of labor and industry shall grant a 71.31restricted journeyman or master plumber license to an individual if:71.32    (1) the individual completes an application with information required by the 71.33commissioner of labor and industry;71.34    (2) the completed application is accompanied by a fee of $90;72.1    (3) the commissioner of labor and industry receives the completed application and 72.2fee before January 1, 2008;72.3    (4) the completed application demonstrates that the applicant has had at least two 72.4years for a restricted journeyman plumber license or four years for a restricted master 72.5plumber license of practical plumbing experience in the plumbing trade prior to the 72.6application; and72.7    (5) during the entire time for which the applicant is claiming experience in 72.8contracting for plumbing work under clause (4), the applicant was in compliance with all 72.9applicable requirements of section 326.40.72.10    Subd. 2.Use of license.A restricted master plumber and restricted journeyman 72.11plumber may engage in the plumbing trade in all areas of the state except in cities and 72.12towns with a population of more than 5,000 according to the federal census.72.13    Subd. 3.Application period.Applications for restricted master plumber and 72.14restricted journeyman plumber licenses must be submitted to the commissioner prior 72.15to January 1, 2008.72.16    Subd. 4.Renewal; use period for license.A restricted master plumber and 72.17restricted journeyman plumber license must be renewed annually for as long as that 72.18licensee engages in the plumbing trade. Failure to renew a restricted master plumber and 72.19restricted journeyman plumber license within 12 months after the expiration date will 72.20result in permanent forfeiture of the restricted master plumber and restricted journeyman 72.21plumber license.72.22    Subd. 5.Prohibition of transference.A restricted master plumber and restricted 72.23journeyman plumber license may not be transferred or sold to any other person.72.24    Subd. 6.Bond; insurance.A restricted master plumber licensee is subject to the 72.25bond and insurance requirements of section 326.40, subdivision 2, unless the exemption 72.26provided by section 326.40, subdivision 3, applies.72.27    Subd. 7.Fee.The annual fee for the restricted master plumber and restricted 72.28journeyman plumber licenses is the same fee as for a master or journeyman plumber 72.29license, respectively.72.30    Sec. 30. Minnesota Statutes 2006, section 326.405, is amended to read:72.31326.405 RECIPROCITY WITH OTHER STATES.72.32    The commissioner of health may license without examination, upon payment of the 72.33required fee, nonresident applicants who are licensed under the laws of a state having 72.34standards for licensing plumbers which the commissioner determines are substantially 72.35equivalent to the standards of this state if the other state grants similar privileges to 73.1Minnesota residents duly licensed in this state. The commissioner may issue a temporary 73.2license without examination, upon payment of the required fee, nonresident applicants 73.3who are licensed under the laws of a state having standards for licensing which the 73.4commissioner determines are substantially equivalent to the standards of this state if 73.5the other state grants similar privileges to Minnesota residents duly licensed in this 73.6state. Applicants who receive a temporary license under this section may acquire an 73.7aggregate of 24 months of experience before they have to apply and pass the licensing 73.8examination. Applicants must register with the commissioner of labor and industry and 73.9the commissioner shall set a fee for a temporary license. Applicants have five years in 73.10which to comply with this section.73.11    Sec. 31. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:73.12    Subdivision 1. Application. Applications for plumber's license shall be made to the 73.13state commissioner of health labor and industry, with fee. Unless the applicant is entitled 73.14to a renewal, the applicant shall be licensed by the state commissioner of health labor and 73.15industry only after passing a satisfactory examination administered by the examiners73.16commissioner of labor and industry, based upon rules adopted by the Plumbing Board73.17showing fitness. Examination fees for both journeyman and master plumbers shall be in 73.18an amount prescribed by the state commissioner of health labor and industry pursuant to 73.19section 
         144.122. Upon being notified that of having successfully passed the examination 73.20for original license the applicant shall submit an application, with the license fee herein 73.21provided. License fees shall be in an amount prescribed by the state commissioner of 73.22health labor and industry pursuant to section 
         144.122. Licenses shall expire and be 73.23renewed as prescribed by the commissioner pursuant to section 
         144.122. 73.24    Sec. 32. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:73.25    Subd. 2. Regulatory authority; tough person contests. All tough person contests, 73.26including amateur tough person contests, are subject to this chapter. All tough person 73.27contests are subject to American Boxing Commission (ABC) rules. Every contestant 73.28in a tough person contest shall have a physical examination prior to their bouts. Every 73.29contestant in a tough person contest shall wear padded gloves that weigh at least 12 73.30ounces. All tough person bouts are limited to two-minute rounds and a maximum of four 73.31total rounds. Officials at tough person bouts shall be licensed under this chapter.73.32    Sec. 33. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision 73.33to read:74.1    Subd. 3.Regulatory authority; similar sporting events.All mixed martial arts, 74.2ultimate fight contests, and similar sporting events are subject to this chapter.74.3    Sec. 34. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:74.4    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in 74.5the year of its issuance issued after the effective date of this act is valid for one year from 74.6the date it is issued and may be renewed by filing an application for renewal with the 74.7commission and payment of the license fee. An application for a license and renewal of a 74.8license must be on a form provided by the commission. There is a 30-day grace period 74.9during which a license may be renewed if a late filing penalty fee equal to the license fee 74.10is submitted with the regular license fee. A licensee that files late shall not conduct any 74.11activity regulated by this chapter until the commission has renewed the license. If the 74.12licensee fails to apply to the commission within the 30-day grace period, the licensee must 74.13apply for a new license under subdivision 1.74.14    Sec. 35. Minnesota Statutes 2006, section 341.321, is amended to read:74.15341.321 FEE SCHEDULE.74.16    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission 74.17is as follows: 74.18    (1) referees, $35 $45 for each initial license and each renewal; 74.19    (2) promoters, $400 for each initial license and each renewal; 74.20    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal; 74.21    (4) trainers, $35 $45 for each initial license and each renewal; 74.22    (5) ring announcers, $25 $45 for each initial license and each renewal; 74.23    (6) boxers' seconds, $25 $45 for each initial license and each renewal; 74.24    (7) timekeepers, $25 $45 for each initial license and each renewal; and74.25    (8) boxers, $35 $45 for each initial license and each renewal.;74.26    (9) managers, $45 for each initial license and each renewal; and74.27    (10) ringside physicians, $45 for each initial license and each renewal.74.28    (b) The commission shall establish and assess an event fee for each sporting event. 74.29The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as 74.30determined by the commission when the sporting event is scheduled.74.31    (c) All fees collected by the Minnesota Boxing Commission must be deposited in 74.32the Boxing Commission account in the special revenue fund. 74.33    Sec. 36.  REPEALER.75.1Minnesota Statutes 2006, sections 176.042; 268.035, subdivision 9; and 326.45, are 75.2repealed.75.3EFFECTIVE DATE.Sections 176.042 and 286.035, subdivision 9, are repealed 75.4effective January 1, 2009.75.5ARTICLE 575.6HIGH PRESSURE PIPING75.7    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:75.8326.46 SUPERVISION OF HIGH PRESSURE PIPING.75.9    The Department of Labor and Industry shall supervise all high pressure piping 75.10used on all projects in this state, and may prescribe minimum standards which shall be 75.11uniform under rules adopted by the board.75.12    The department shall employ inspectors and other assistants to carry out the 75.13provisions of sections 
         326.46 to 
         326.52. 75.14    Sec. 2. Minnesota Statutes 2006, section 326.461, is amended by adding a subdivision 75.15to read:75.16    Subd. 1a.Board."Board" means the Board of High Pressure Piping Systems.75.17    Sec. 3. Minnesota Statutes 2006, section 326.47, subdivision 2, is amended to read:75.18    Subd. 2. Permissive municipal regulation. A municipality may, by ordinance, 75.19provide for the inspection of high pressure piping system materials and construction, and 75.20provide that it shall not be constructed or installed except in accordance with minimum 75.21state standards. The authority designated by the ordinance for issuing high pressure piping 75.22permits and assuring compliance with state standards must report to the Department of 75.23Labor and Industry all violations of state high pressure piping standards.75.24    A municipality may not adopt an ordinance with high pressure piping standards that 75.25does not conform to the uniform standards prescribed by the Department of Labor and 75.26Industry board. The Department of Labor and Industry board shall specify by rule the 75.27minimum qualifications for municipal inspectors.75.28    Sec. 4. Minnesota Statutes 2006, section 326.47, subdivision 6, is amended to read:75.29    Subd. 6. Filing and inspection fees. The Department of Labor and Industry 75.30must charge a filing fee set by the commissioner board under section 
         16A.1285 for all 75.31applications for permits to construct or install high pressure piping systems. The fee for 76.1inspection of high pressure piping system construction or installation shall be set by the 76.2commissioner in consultation with the board under section 
         16A.1285. This subdivision 76.3does not apply where a permit is issued by a municipality complying with subdivision 2. 76.4    Sec. 5. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.76.5    Subdivision 1.Composition.(a) The Board of High Pressure Piping Systems shall 76.6consist of 12 members who must be residents of the state, appointed by the governor, and 76.7confirmed by the senate. The commissioner of the Department of Labor and Industry or 76.8the commissioner's designee shall be a voting member. The first appointed board members 76.9shall serve an initial term of four years, except where designated otherwise. The governor 76.10shall then reappoint the current members or appoint replacement members, all or in part, to 76.11subsequent three-year terms. Midterm vacancies shall be filled for the remaining portion 76.12of the term. Vacancies occurring with less than six months time remaining in the term 76.13shall be filled for the existing term and the following three-year term. Of the 11 appointed 76.14members, the composition shall be as follows:76.15    (1) one member shall be a high pressure piping inspector;76.16    (2) one member shall be a licensed mechanical engineer;76.17    (3) one member shall be a representative of the piping industry;76.18    (4) four members shall be high pressure piping contractors or their representatives, 76.19engaged in the scope of high pressure piping, two from the metro area and two from 76.20greater Minnesota;76.21    (5) two members shall be high pressure piping journeypersons engaged in the scope 76.22of high pressure piping systems installation, one from the metro area and one from greater 76.23Minnesota; and76.24    (6) two members shall be representatives from utility companies in Minnesota 76.25who shall serve an initial term of two years.76.26    (b) Except for the licensed mechanical engineer and the members from utilities 76.27companies, all persons appointed to the board must possess a current license or 76.28competency credential required for contractors and persons engaged in the design, 76.29installation, alteration, and inspection of high pressure piping systems.76.30    Subd. 2.Powers.(a) The board shall have the power to:76.31    (1) elect its chair;76.32    (2) specify the high pressure piping code that must be followed in Minnesota;76.33    (3) maintain an appeals committee to make determinations regarding any complaints, 76.34code amendments, code compliance, and code clarifications filed with the board;77.1    (4) adopt rules necessary for the regulation and licensing of contractors, 77.2journeypersons, trainees, and persons engaged in the design, installation, alteration, and 77.3inspection of high pressure piping systems, except for persons licensed under sections 77.4326.02 to 326.15;77.5    (5) adopt rules necessary for continuing education for individuals regulated and 77.6licensed under this section; and77.7    (6) pay expenses deemed necessary in the performance of board duties, including: 77.8    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18, 77.9subdivision 2; and 77.10    (ii) per diem and expenses for its members as provided in section 15.0575, 77.11subdivision 3.77.12    (b) Complaints filed under this section may originate with high pressure piping 77.13inspectors, contractors, or their employees, or other persons engaged in the design, 77.14installation, and alteration of a high pressure piping system. The board shall make their 77.15findings known to all parties and the commissioner of the Department of Labor and 77.16Industry within the time period specified by the board.77.17    Subd. 3.Fee and finances.The board shall submit an annual budget to the 77.18commissioner of the Department of Labor and Industry. The commissioner shall collect 77.19fees under section 326.47, subdivision 6, necessary for the operation and continuance of 77.20the board. The commissioner is responsible for the enforcement of the codes and licensing 77.21requirements determined by the board. The board shall recommend the fees for licenses 77.22and certification under this section and for all high pressure piping system permits and 77.23submit the fee structure to the commissioner of labor and industry. The commissioner 77.24of finance shall make a quarterly certification of the amount necessary to pay expenses 77.25required for operation of the board under subdivision 2, paragraph (a), clause (6). The 77.26certified amount is appropriated in fiscal years 2008 and 2009 to the board for those 77.27purposes from the fees collected under section 326.50.77.28    Sec. 6. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:77.29    Subdivision 1. License required; rules; time credit. No person shall engage in 77.30or work at the business of a contracting pipefitter unless issued an individual contracting 77.31pipefitter license to do so by the Department of Labor and Industry under rules prescribed 77.32by the board. No license shall be required for repairs on existing installations. No 77.33person shall engage in or work at the business of journeyman pipefitter unless issued an 77.34individual journeyman pipefitter competency license to do so by the Department of Labor 78.1and Industry under rules prescribed by the board. A person possessing an individual 78.2contracting pipefitter competency license may also work as a journeyman pipefitter.78.3    No person, partnership, firm, or corporation shall install high pressure piping, nor 78.4install high pressure piping in connection with the dealing in and selling of high pressure 78.5pipe material and supplies, unless, at all times, a person possessing a contracting pipefitter 78.6individual competency license or a journeyman pipefitter individual competency license is 78.7responsible for the high pressure pipefitting work conducted by the person, partnership, 78.8firm, or corporation being in conformity with Minnesota Statutes and Minnesota Rules.78.9    The Department of Labor and Industry board shall prescribe rules, not inconsistent 78.10herewith, for the examination and individual competency licensing of contracting 78.11pipefitters and journeyman pipefitters and for issuance of permits by the department and 78.12municipalities for the installation of high pressure piping.78.13    An employee performing the duties of inspector for the Department of Labor and 78.14Industry in regulating pipefitting shall not receive time credit for the inspection duties 78.15when making an application for a license required by this section.78.16    Sec. 7. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:78.17    Subd. 2. High pressure pipefitting business license. Before obtaining a permit 78.18for high pressure piping work, a person, partnership, firm, or corporation must obtain or 78.19utilize a business with a high pressure piping business license.78.20    A person, partnership, firm, or corporation must have at all times as a full-time 78.21employee at least one individual holding an individual contracting pipefitter competency 78.22license. Only full-time employees who hold individual contracting pipefitter licenses 78.23are authorized to obtain high pressure piping permits in the name of the business. The 78.24individual contracting pipefitter competency license holder can be the employee of only 78.25one high pressure piping business at a time.78.26    To retain its business license without reapplication, a person, partnership, firm, or 78.27corporation holding a high pressure piping business license that ceases to employ a person 78.28holding an individual contracting pipefitter competency license shall have 60 days from 78.29the last day of employment of its previous individual contracting pipefitter competency 78.30license holder to employ another license holder. The Department of Labor and Industry 78.31must be notified no later than five days after the last day of employment of the previous 78.32license holder.78.33    No high pressure pipefitting work may be performed during any period when the 78.34high pressure pipefitting business does not have an individual contracting pipefitter 79.1competency license holder on staff. If a license holder is not employed within 60 days, 79.2the pipefitting business license shall lapse.79.3    The Department of Labor and Industry board shall prescribe by rule procedures for 79.4application for and issuance of business licenses and fees.79.5    Sec. 8. Minnesota Statutes 2006, section 326.48, is amended by adding a subdivision 79.6to read:79.7    Subd. 6.Reciprocity with other states.The commissioner may issue a temporary 79.8license without examination, upon payment of the required fee, nonresident applicants 79.9who are licensed under the laws of a state having standards for licensing which the 79.10commissioner determines are substantially equivalent to the standards of this state if 79.11the other state grants similar privileges to Minnesota residents duly licensed in this 79.12state. Applicants who receive a temporary license under this section may acquire an 79.13aggregate of 24 months of experience before they have to apply and pass the licensing 79.14examination. Applicants must register with the commissioner of labor and industry and 79.15the commissioner shall set a fee for a temporary license. Applicants have five years in 79.16which to comply with this section.79.17    Sec. 9. Minnesota Statutes 2006, section 326.50, is amended to read:79.18326.50 APPLICATION; FEES.79.19    Application for an individual contracting pipefitter competency or an individual 79.20journeyman pipefitter competency license shall be made to the Department of Labor and 79.21Industry, with fees. The applicant shall be licensed only after passing an examination79.22administered by the Department of Labor and Industry in accordance with rules adopted 79.23by the board.79.24    Sec. 10. Minnesota Statutes 2006, section 326.51, is amended to read:79.25326.51 DEPARTMENT MAY REVOKE LICENSES.79.26    The department board may revoke or suspend, for cause, any license obtained 79.27through error or fraud, or if the licensee is shown to be incompetent, or for a violation 79.28of any of its rules and regulations applicable to high pressure pipefitting work. The 79.29licensee shall have notice, in writing, enumerating the charges, and be entitled to a hearing 79.30on at least ten days' notice, with the right to produce testimony. The hearing shall be 79.31held pursuant to chapter 14. The commissioner board shall issue a final order based on 79.32testimony and the record at hearing. One year from the date of revocation application 79.33may be made for a new license.80.1    Sec. 11. Minnesota Statutes 2006, section 326.52, is amended to read:80.2326.52 DEPOSIT OF FEES.80.3    All fees received under sections 
         326.46 to 
         326.52 shall be deposited by the 80.4Department of Labor and Industry to the credit of the general fund in the state treasury. 80.5The salaries and per diem of the inspectors and examiners hereinbefore provided, their 80.6expenses, and all incidental expenses of the department and board in carrying out the 80.7provisions of sections 
         326.46 to 
         326.52 shall be paid from the appropriations made to the 80.8Department of Labor and Industry. The commissioner in consultation with the board by 80.9rule shall set the amount of the fees at a level that approximates, to the greatest extent 80.10possible, the salaries, per diem, and incidental expenses of the department.80.11    Sec. 12. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING 80.12SYSTEMS.80.13    The authority of the commissioner of labor and industry to adopt rules relating to 80.14high pressure piping systems is transferred to the Board of High Pressure Piping Systems. 80.15Licenses and permits currently in effect remain in effect according to their terms unless 80.16affected by board action. Rules adopted by the commissioner of labor and industry remain 80.17in effect until amended or repealed by the board. The commissioner of administration 80.18may not use the authority under Minnesota Statutes, section 16B.37, to modify transfers of 80.19authority in this act.80.20    Sec. 13. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH 80.21PRESSURE PIPING SYSTEMS.80.22    The governor must complete the appointments required by Minnesota Statutes, 80.23section 326.471, no later than July 1, 2007. The commissioner of labor and industry 80.24shall convene the first meeting of the Board of High Pressure Piping Systems no later 80.25than September 1, 2007.80.26ARTICLE 680.27IRON RANGE RESOURCES AND REHABILITATION BOARD80.28    Section 1. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:80.29    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby 80.30created the Iron Range Resources and Rehabilitation Board, consisting of 13ten members, 80.31five of whom are state senators appointed by the Subcommittee on Committees of the 80.32Rules Committee of the senate, and five of whom are representatives, appointed by the 80.33speaker of the house of representatives. The remaining members shall be appointed one 81.1each by the senate majority leader, the speaker of the house of representatives, and the 81.2governor and must be nonlegislators who reside in a taconite assistance area as defined in 81.3section 273.1341. The members shall be appointed in January of every odd-numbered 81.4year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and 81.5shall serve until January of the next odd-numbered year. Vacancies on the board shall be 81.6filled in the same manner as the original members were chosen. At least a majority of 81.7the legislative members of the board shall be elected from state senatorial or legislative 81.8districts in which over 50 percent of the residents reside within a taconite assistance area 81.9as defined in section 
         273.1341. All expenditures and projects made by the commissioner 81.10of Iron Range resources and rehabilitation shall be consistent with the priorities 81.11established in subdivision 8 and shall first be submitted to the Iron Range Resources and 81.12Rehabilitation Board for approval by a majority of the board of expenditures and projects 81.13for rehabilitation purposes as provided by this section, and the method, manner, and time 81.14of payment of all funds proposed to be disbursed shall be first approved or disapproved by 81.15the board. The board shall biennially make its report to the governor and the legislature on 81.16or before November 15 of each even-numbered year. The expenses of the board shall be 81.17paid by the state from the funds raised pursuant to this section. 81.18    Sec. 2. Minnesota Statutes 2006, section 298.227, is amended to read:81.19298.227 TACONITE ECONOMIC DEVELOPMENT FUND.81.20    An amount equal to that distributed pursuant to each taconite producer's taxable 81.21production and qualifying sales under section 
         298.28, subdivision 9a, shall be held by 81.22the Iron Range Resources and Rehabilitation Board in a separate taconite economic 81.23development fund for each taconite and direct reduced ore producer. Money from the 81.24fund for each producer shall be released by the commissioner after review by a joint 81.25committee consisting of an equal number of representatives of the salaried employees and 81.26the nonsalaried production and maintenance employees of that producer. The District 11 81.27director of the United States Steelworkers of America, on advice of each local employee 81.28president, shall select the employee members. In nonorganized operations, the employee 81.29committee shall be elected by the nonsalaried production and maintenance employees. 81.30The review must be completed no later than six months after the producer presents a 81.31proposal for expenditure of the funds to the committee. The funds held pursuant to this 81.32section may be released only for acquisition of plant and stationary mining equipment 81.33and facilities for the producer or for research and development in Minnesota on new 81.34mining, or taconite, iron, or steel production technology, but only if the producer provides 81.35a matching expenditure to be used for the same purpose of at least 50 percent of the 82.1distribution based on 
         14.7 cents per ton beginning with distributions in 2002. Effective for 82.2proposals for expenditures of money from the fund approved beginning the day following 82.3final enactment, the commissioner may release the funds only if the proposed expenditure 82.4is approved by a majority of the members of the Iron Range Resources and Rehabilitation 82.5Board. If a producer uses money which has been released from the fund prior to the day 82.6following final enactment to procure haulage trucks, mobile equipment, or mining shovels, 82.7and the producer removes the piece of equipment from the taconite tax relief area defined 82.8in section 
         273.134 within ten years from the date of receipt of the money from the fund, 82.9a portion of the money granted from the fund must be repaid to the taconite economic 82.10development fund. The portion of the money to be repaid is 100 percent of the grant if the 82.11equipment is removed from the taconite tax relief area within 12 months after receipt of 82.12the money from the fund, declining by ten percent for each of the subsequent nine years 82.13during which the equipment remains within the taconite tax relief area. If a taconite 82.14production facility is sold after operations at the facility had ceased, any money remaining 82.15in the fund for the former producer may be released to the purchaser of the facility on 82.16the terms otherwise applicable to the former producer under this section. If a producer 82.17fails to provide matching funds for a proposed expenditure within six months after the 82.18commissioner approves release of the funds, the funds are available for release to another 82.19producer in proportion to the distribution provided and under the conditions of this section. 82.20Any portion of the fund which is not released by the commissioner within two years of its 82.21deposit in the fund shall be divided between the taconite environmental protection fund 82.22created in section 
         298.223 and the Douglas J. Johnson economic protection trust fund 82.23created in section 
         298.292 for placement in their respective special accounts. Two-thirds 82.24of the unreleased funds shall be distributed to the taconite environmental protection fund 82.25and one-third to the Douglas J. Johnson economic protection trust fund. 82.26EFFECTIVE DATE.This section is effective for proposals for expenditures of 82.27money from the fund the day following final enactment.82.28    Sec. 3. APPROPRIATION; IRON RANGE RESOURCES AND 82.29REHABILITATION BOARD.82.30    (a) $500,000 is appropriated from the Iron Range Resources and Rehabilitation 82.31Board fund for fiscal year 2008 for allocation in this section:82.32    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other 82.33infrastructure to a peat project in Spencer Township in Aitkin County;83.1    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham 83.2Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent 83.3endowment for the preservation;83.4    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the 83.5organization to employ youth for the construction of community centers; and83.6    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field 83.7construction.83.8    (b) $120,000 is appropriated from the general fund for payment to the city of Eveleth 83.9to be used for the support of the Hockey Hall of Fame Museum provided that it continues 83.10to operate in the city, which payment is in addition to and must not be used to supplant 83.11funding under section 298.28, subdivision 9c.83.12    These are onetime appropriations.83.13    Sec. 4. IRRRB BUILDING.83.14    The Iron Range Resources and Rehabilitation Board office building in Eveleth, 83.15Minnesota is designated and named the Joe Begich Building and shall be signed as such 83.16at every entrance.83.17ARTICLE 783.18ELECTRICAL83.19    Section 1. Minnesota Statutes 2006, section 326.01, subdivision 6g, is amended to read:83.20    Subd. 6g. Personal direct supervision.The term "personal "Direct supervision" 83.21means that a person licensed to perform electrical work oversees and directs the electrical 83.22work performed by an unlicensed person such that:83.23    (1) the licensed person actually reviews the electrical work performed by the 83.24unlicensed person an unlicensed individual is being supervised by an individual licensed 83.25to perform the electrical work being supervised;83.26    (2) during the entire working day of the unlicensed individual, the licensed 83.27individual is physically present at the location where the unlicensed individual is 83.28preforming electrical work and immediately available to the unlicensed individual;83.29    (3) the licensed person individual is physically present and immediately available to 83.30the unlicensed person individual at all times for assistance and direction; and83.31    (4) electronic supervision does not meet the requirement of physically present and 83.32immediately available;83.33    (5) the licensed individual shall review the electrical work performed by the 83.34unlicensed individual before the electrical work is operated; and84.1    (3) (6) the licensed person individual is able to and does determine that all electrical 84.2work performed by the unlicensed person individual is performed in compliance with 84.3section 
         326.243. 84.4    The licensed person individual is responsible for the compliance with section 84.5326.243
          of all electrical work performed by the unlicensed person individual. 84.6    Sec. 2. Minnesota Statutes 2006, section 326.241, subdivision 1, is amended to read:84.7    Subdivision 1. Composition.(a) The Board of Electricity shall consist of 11 1284.8members, residents of the state, appointed by the governor of whom and confirmed by 84.9the senate. The commissioner of labor and industry or the commissioner's designee shall 84.10be a nonvoting member. The first appointed board members shall serve an initial term 84.11of four years, except where designated otherwise. The governor shall then reappoint the 84.12current members or appoint replacement members, all or in part, to subsequent three-year 84.13terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies 84.14occurring with less than six months time remaining in the term shall be filled for the 84.15existing term and the following three-year term. Of the 11 appointed members, the 84.16composition shall be as follows:84.17    (1) two shall be representatives of the electrical suppliers in the rural areas of the 84.18state,84.19    (2) two shall be master electricians, who shall be contractors,84.20    (3) two journeyman electricians,84.21    (4) one registered consulting electrical engineer,84.22    (5) two power limited technicians, who shall be technology system contractors 84.23primarily engaged in the business of installing technology circuits or systems, and84.24    (6) two public members as defined by section 
         214.02.84.25    (b) Except as provided herein, membership terms, compensation of members, 84.26removal of members, the filling of membership vacancies, and fiscal year and reporting 84.27requirements shall be as provided in sections 
         214.07 to 
         214.09. The provision of staff, 84.28administrative services and office space; the review and processing of complaints; the 84.29setting of board fees; and other provisions relating to board operations shall be as provided 84.30in chapter 214. 84.31    Sec. 3. Minnesota Statutes 2006, section 326.241, subdivision 2, is amended to read:84.32    Subd. 2. Powers.(a) The board, or the complaint committee on behalf of the board 84.33where authorized by law, shall have power to:84.34    (1) Elect its own officers.85.1    (2) Engage and fix the compensation of inspectors, and hire employees. The salary 85.2of the executive secretary shall be established pursuant to chapter 43A. All agents and 85.3employees other than contract inspectors shall be in the classified service and shall be 85.4compensated pursuant to chapter 43A. All inspectors shall hold licenses as master or 85.5journeyman electricians under section 326.242, subdivision 1(1) or 2(1), and shall give 85.6bond in an amount fixed by the board, conditioned upon the faithful performance of 85.7their duties.85.8    (3) (2) Pay such other expenses as it may deem necessary in the performance of its 85.9duties, including rent, supplies, and such like.85.10    (3) Select from its members individuals to serve on any other state advisory councils, 85.11boards, or committees.85.12    (4) Enforce the provisions of sections 
         326.241 to 
         326.248, and provide, upon 85.13request, such additional voluntary inspections and reviews as it may deem appropriate. 85.14    (5) Issue, renew, refuse to renew, suspend, temporarily suspend, and revoke licenses, 85.15censure licensees, assess civil penalties, issue cease and desist orders, and seek injunctive 85.16relief and civil penalties in court as authorized by section 326.242 and other provisions of 85.17Minnesota law. Establish the committees required herein and any others deemed necessary 85.18by the board or requested by the commissioner.85.19    (6) Adopt reasonable rules to carry out its duties under sections 
         326.241 to 
         326.24885.20and to provide for the amount and collection of fees for inspection and other services. All 85.21rules shall be adopted in accordance with chapter 14. 85.22    (7) Advise the commissioner on issues related to sections 326.241 to 326.248 or as 85.23requested by the commissioner.85.24    (b) Except for the powers granted to the Electricity Board the commissioner of labor 85.25and industry shall administer the provisions of sections 326.241 to 326.248 and for such 85.26purposes may employ electrical inspectors and other assistants.85.27    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 3d, is amended to read:85.28    Subd. 3d. Power limited technician. (a) Except as otherwise provided by law, no 85.29person shall install, alter, repair, plan, lay out, or supervise the installing, altering, or 85.30repairing of electrical wiring, apparatus, or equipment for technology circuits or systems 85.31unless:85.32    (1) the person is licensed by the board as a power limited technician; and85.33    (2) the electrical work is:85.34    (i) for a licensed contractor and the person is an employee, partner, or officer of, 85.35or is the licensed contractor; or86.1    (ii) performed under the supervision of a master electrician or power limited 86.2technician also employed by the person's employer on technology circuits, systems, 86.3apparatus, equipment, or facilities owned or leased by the employer that are located within 86.4the limits of property owned or leased, operated, and maintained by the employer.86.5    (b) An applicant for a power limited technician's license shall (1) be a graduate of a 86.6four-year electrical course in an accredited college or university; or (2) have had at least 36 86.7months' experience, acceptable to the board, in planning for, laying out, supervising, and 86.8installing wiring, apparatus, or equipment for power limited systems, provided however, 86.9that the board may by rule provide for the allowance of up to 12 months (2,000 hours) 86.10of experience credit for successful completion of a two-year post high school electrical 86.11course or other technical training approved by the board.86.12    (c) The board may initially set experience requirements without rulemaking, but 86.13must adopt rules before July 1, 2004.86.14    (d) Licensees must attain eight hours of continuing education acceptable to the 86.15board every renewal period.86.16    (e) A person who has submitted an application by June 30, 2003, to take the alarm 86.17and communications examination administered by the board, and who has achieved a 86.18minimal score of 70 percent on the examination by September 30, 2003, may obtain a 86.19power limited technician license without further examination by submitting an application 86.20and a license fee of $30.86.21    (f) A company holding an alarm and communication license as of June 30, 2003, 86.22may designate one person who may obtain a power limited technician license without 86.23passing an examination administered by the board by submitting an application and 86.24license fee of $30.86.25    (g) A person who has submitted an application by September 30, 2005 December 86.2631, 2007, to take the power limited technician examination administered by the board86.27department is not required to meet the qualifications set forth in paragraph (b).86.28EFFECTIVE DATE.This section is effective the day following final enactment.86.29    Sec. 5. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:86.30    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual 86.31means an individual who has not been licensed by the Board of Electricity as a Class A 86.32master electrician or as a Class A journeyman electrician. An unlicensed individual shall 86.33not perform electrical work required to be performed by a licensed individual unless the 86.34individual has first registered with the Board of Electricity as an unlicensed individual. 86.35Thereafter, an unlicensed individual shall not perform electrical work required to be 87.1performed by a licensed individual unless the work is performed under the personal direct87.2supervision of a person an individual actually licensed to perform such work and. The 87.3licensed electrician individual and unlicensed persons are individual must be employed 87.4by the same employer. Licensed persons individuals shall not permit unlicensed persons87.5individuals to perform electrical work except under the personal direct supervision of 87.6a person an individual actually licensed to perform such work. Unlicensed persons87.7individuals shall not supervise the performance of electrical work or make assignments 87.8of electrical work to unlicensed persons individuals. Except for technology circuit or 87.9system work, licensed persons individuals shall supervise no more than two unlicensed 87.10persons individuals. For technology circuit or system work, licensed persons individuals87.11shall supervise no more than three unlicensed persons individuals.87.12    (b) Notwithstanding any other provision of this section, no person individual other 87.13than a master electrician or power limited technician shall plan or lay out electrical wiring, 87.14apparatus, or equipment for light, heat, power, or other purposes, except circuits or 87.15systems exempted from personal licensing by subdivision 12, paragraph (b).87.16    (c) Contractors employing unlicensed persons performing individuals to perform87.17electrical work shall maintain records establishing compliance with this subdivision, 87.18which that shall designate identify all unlicensed persons individuals performing electrical 87.19work, except for persons working on circuits or systems exempted from personal licensing 87.20by subdivision 12, paragraph (b), and shall permit the board to examine and copy all such 87.21records as provided for in section 
         326.244, subdivision 6. 87.22    (d) When a licensed individual supervises the electrical work of an unlicensed 87.23individual, the licensed individual is responsible for ensuring that the electrical work 87.24complies with sections 326.241 to 326.248 and rules adopted.87.25    Sec. 6. Minnesota Statutes 2006, section 326.242, is amended by adding a subdivision 87.26to read:87.27    Subd. 5a.Registration of unlicensed individuals.Unlicensed individuals 87.28performing electrical work for a contractor or employer shall register with the department 87.29in the manner prescribed by the commissioner. Experience credit for electrical work 87.30performed after January 1, 2008, by an applicant for a license identified in this section 87.31shall not be granted where the applicant has not registered with or is not licensed by 87.32the department.87.33    Sec. 7. Minnesota Statutes 2006, section 326.242, subdivision 11, is amended to read:88.1    Subd. 11. Reciprocity.To the extent that any other state which provides for the 88.2licensing of electricians provides for similar action the board may grant licenses, without 88.3examination, of the same grade and class to an electrician who has been licensed by such 88.4other state for at least one year, upon payment by the applicant of the required fee and 88.5upon the board being furnished with proof that the required fee and upon the board being 88.6furnished with proof that the qualifications of the applicant are equal to the qualifications 88.7of holders of similar licenses in Minnesota. The commissioner may enter into reciprocity 88.8agreements for personal licenses with another state if approved by the board. Once 88.9approved by the board, the commissioner may issue a personal license without requiring 88.10the applicant to pass an examination provided the applicant:88.11    (a) submits an application under section 326.242;88.12    (b) pays the fee required under section 326.242; and88.13    (c) holds a valid comparable license in the state participating in the agreement.88.14    Agreements are subject to the following:88.15    (1) The parties to the agreement must administer a statewide licensing program that 88.16includes examination and qualifying experience or training comparable to Minnesota's.88.17    (2) The experience and training requirements under which an individual applicant 88.18qualified for examination in the qualifying state must be deemed equal to or greater than 88.19required for an applicant making application in Minnesota at the time the applicant 88.20acquired the license in the qualifying state.88.21    (3) The applicant must have acquired the license in the qualifying state through an 88.22examination deemed equivalent to the same class of license examination in Minnesota. 88.23A lesser class of license may be granted where the applicant has acquired a greater 88.24class of license in the qualifying state and the applicant otherwise meets the conditions 88.25of this subdivision.88.26    (4) At the time of application, the applicant must hold a valid license in the 88.27qualifying state and have held the license continuously for at least one year before making 88.28application in Minnesota.88.29    (5) An applicant is not eligible for a license under this subdivision if the applicant 88.30has failed the same or greater class of license examination in Minnesota, or if the 88.31applicant's license of the same or greater class has been revoked or suspended.88.32    (6) An applicant who has failed to renew a personal license for two years or more 88.33after its expiration is not eligible for a license under this subdivision.88.34    Sec. 8. REPEALER.89.1Minnesota Statutes 2006, sections 326.01, subdivision 4; and 326.242, subdivision 89.24, are repealed.89.3EFFECTIVE DATE.This section is effective the day following final enactment.89.4ARTICLE 889.5APPRENTICESHIP BOARD89.6    Section 1. Minnesota Statutes 2006, section 178.01, is amended to read:89.7178.01 PURPOSES.89.8    The purposes of this chapter are: to open to young people regardless of race, sex, 89.9creed, color or national origin, the opportunity to obtain training that will equip them for 89.10profitable employment and citizenship; to establish as a means to this end, a program 89.11of voluntary apprenticeship under approved apprentice agreements providing facilities 89.12for their training and guidance in the arts, skills, and crafts of industry and trade, with 89.13concurrent, supplementary instruction in related subjects; to promote employment 89.14opportunities under conditions providing adequate training and reasonable earnings; 89.15to relate the supply of skilled workers to employment demands; to establish standards 89.16for apprentice training; to establish an Apprenticeship Advisory Council Board and 89.17apprenticeship committees to assist in effectuating the purposes of this chapter; to provide 89.18for a Division of Labor Standards and Apprenticeship within the Department of Labor 89.19and Industry; to provide for reports to the legislature regarding the status of apprentice 89.20training in the state; to establish a procedure for the determination of apprentice agreement 89.21controversies; and to accomplish related ends.89.22    Sec. 2. Minnesota Statutes 2006, section 178.02, is amended to read:89.23178.02 APPRENTICESHIP ADVISORY COUNCIL BOARD.89.24    Subdivision 1. Members. The commissioner of labor and industry, hereinafter 89.25called the commissioner, shall appoint an Apprenticeship Advisory Council Board, 89.26hereinafter referred to as the council board, composed of three representatives each from 89.27employer and employee organizations, and two representatives of the general public. The 89.28director of education responsible for career and technical education or designee shall be an 89.29ex officio member of the council board and shall serve in an advisory capacity only.89.30    Subd. 2. Terms. The council board shall expire and the terms, compensation, and 89.31removal of appointed members shall be as provided in section 
         15.059, except that the 89.32council shall not expire before June 30, 2003. 90.1    Subd. 4. Duties. The council board shall meet at the call of the commissioner. It 90.2shall propose occupational classifications for apprenticeship programs; propose minimum 90.3standards for apprenticeship programs and agreements; and advise on the establishment 90.4of such policies, procedures, and rules as the commissionerboard deems necessary in 90.5implementing the intent of this chapter.90.6    Sec. 3. Minnesota Statutes 2006, section 178.03, subdivision 3, is amended to read:90.7    Subd. 3. Duties and functions. The director, under the supervision of the 90.8commissioner, and with the advice and oversight of the Apprenticeship Advisory 90.9Council Board, is authorized: to administer the provisions of this chapter; to promote 90.10apprenticeship and other forms of on the job training; to establish, in cooperation and 90.11consultation with the Apprenticeship Advisory Council Board and with the apprenticeship 90.12committees, conditions and training standards for the approval of apprenticeship programs 90.13and agreements, which conditions and standards shall in no case be lower than those 90.14prescribed by this chapter; to promote equal employment opportunity in apprenticeship 90.15and other on the job training and to establish a Minnesota plan for equal employment 90.16opportunity in apprenticeship which shall be consistent with standards established 90.17under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of 90.18registration to sponsors of approved apprenticeship programs; to act as secretary of the 90.19Apprenticeship Advisory Council Board; to approve, if of the opinion that approval is 90.20for the best interest of the apprentice, any apprenticeship agreement which meets the 90.21standards established hereunder; to terminate any apprenticeship agreement in accordance 90.22with the provisions of such agreement; to keep a record of apprenticeship agreements and 90.23their disposition; to issue certificates of completion of apprenticeship; and to perform 90.24such other duties as the commissioner deems necessary to carry out the intent of this 90.25chapter; provided, that the administration and supervision of supplementary instruction in 90.26related subjects for apprentices; coordination of instruction on a concurrent basis with 90.27job experiences, and the selection and training of teachers and coordinators for such 90.28instruction shall be the function of state and local boards responsible for vocational 90.29education. The director shall have the authority to make wage determinations applicable 90.30to the graduated schedule of wages and journeyman wage rate for apprenticeship 90.31agreements, giving consideration to the existing wage rates prevailing throughout the 90.32state, except that no wage determination by the director shall alter an existing wage 90.33provision for apprentices or journeymen that is contained in a bargaining agreement in 90.34effect between an employer and an organization of employees, nor shall the director 91.1make any determination for the beginning rate for an apprentice that is below the wage 91.2minimum established by federal or state law.91.3    Sec. 4. Minnesota Statutes 2006, section 178.041, subdivision 1, is amended to read:91.4    Subdivision 1. Rules. The commissioner may, upon receipt of the council's board's91.5proposals, accept, adopt, and issue them by rule with any modifications or amendments 91.6the commissioner finds appropriate. The commissioner may refer them back to the 91.7council board with recommendations for further study, consideration and revision. If 91.8the commissioner refuses to accept, adopt, and issue by rule or other appropriate action 91.9a board proposal, the commissioner must provide a written explanation of the reason 91.10for the refusal to the board within 30 days after the board submitted the proposal to the 91.11commissioner. Additional rules may be issued as the commissioner may deem necessary.91.12ARTICLE 991.13MINNESOTA HERITAGE

91.14Section 1.  SUMMARY OF APPROPRIATIONS.

91.15    The amounts shown in this section summarize direct appropriations by fund made 91.16in this article.

91.1720082009Total91.18General$51,175,000$47,510,000$98,685,00091.19Total$51,175,000$47,510,000$98,685,000

91.20Sec. 2. MINNESOTA HERITAGE APPROPRIATIONS.

91.21    The sums shown in the columns marked "Appropriations" are appropriated to the 91.22agencies and for the purposes specified in this article. The appropriations are from the 91.23general fund, or another named fund, and are available for the fiscal years indicated 91.24for each purpose. The figures "2008" and "2009" used in this article mean that the 91.25appropriations listed under them are available for the fiscal year ending June 30, 2008, or 91.26June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 91.27year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 91.28year ending June 30, 2007, are effective the day following final enactment.

91.29APPROPRIATIONS91.30Available for the Year91.31Ending June 3091.3220082009

91.33Sec. 3. EXPLORE MINNESOTA TOURISM$11,669,000$12,587,000

92.1(a) To develop maximum private sector 92.2involvement in tourism, $1,000,000 the first 92.3year and $2,000,000 the second year must 92.4be matched by Explore Minnesota Tourism 92.5from nonstate sources. Each $1 of state 92.6incentive must be matched with $3 of private 92.7sector funding. Cash match is defined as 92.8revenue to the state or documented cash 92.9expenditures directly expended to support 92.10Explore Minnesota Tourism programs. Up 92.11to one-half of the private sector contribution 92.12may be in-kind or soft match. The incentive 92.13in the first year shall be based on fiscal 92.14year 2007 private sector contributions as 92.15prescribed in Laws 2005, First Special 92.16Session chapter 1, article 3, section 6. The 92.17incentive increase in the second year will 92.18be based on fiscal year 2008 private sector 92.19contributions. This incentive is ongoing.92.20(b) Funding for the marketing grants is 92.21available either year of the biennium. 92.22Unexpended grant funds from the first year 92.23are available in the second year.92.24(c) Any unexpended money from the general 92.25fund appropriations made under this section 92.26does not cancel but must be placed in a 92.27special marketing account for use by Explore 92.28Minnesota Tourism for additional marketing 92.29activities.92.30(d) $250,000 the first year and $250,000 92.31the second year are for operating costs of 92.32the Minnesota Film and TV Board. The 92.33appropriation in each year is available 92.34only upon receipt by the board of $1 in 92.35matching contributions of money or in-kind 93.1contributions from nonstate sources for every 93.2$3 provided by this appropriation.93.3(e) $750,000 is appropriated each year for a 93.4grant to the Minnesota Film and TV Board 93.5for the film jobs production program under 93.6Minnesota Statutes, section 116U.26. Of 93.7this amount, up to $25,000 each year may 93.8be used for administration. The budget base 93.9for the film jobs production program shall be 93.10$500,000 in fiscal year 2010 and $500,000 in 93.11fiscal year 2011.93.12(f) $150,000 the first year is for a onetime 93.13grant to St. Louis County to be used for 93.14feasibility studies and planning activities 93.15concerning additional uses for the St. Louis 93.16County Heritage and Arts Center at the 93.17Duluth depot. The studies and planning 93.18activities must include:93.19(1) examining the costs and benefits of 93.20relocating the Northeast Minnesota Office of 93.21Tourism to the Duluth depot;93.22(2) establishing a heritage tourism center at 93.23the Duluth depot;93.24(3) developing a multimodal operational plan 93.25integrating railroad and bus service; and93.26(4) identifying additional services and 93.27activities that would contribute toward 93.28returning the Duluth depot to being a 93.29working railroad station and cultural gateway 93.30to Duluth and St. Louis County.93.31This appropriation is available until June 30, 93.322009.

93.3393.34Sec. 4. MINNESOTA HISTORICAL SOCIETY

94.1Subdivision 1.Total Appropriation$29,031,000$24,441,000

94.2The amounts that may be spent for each 94.3purpose are specified in the following 94.4subdivisions.94.5$500,000 the first year and $500,000 the 94.6second year are for increased rent costs. This 94.7amount is added to the society's base budget.

94.8Subd. 2.Education and Outreach17,307,00013,765,000

94.9(a) Of this amount, $1,700,000 the first year 94.10is a onetime appropriation for the Minnesota 94.11Sesquicentennial Commission. Of this 94.12appropriation, $750,000 is for competitive 94.13matching grants for local events and projects; 94.14$750,000 is for planning and support of 94.15statewide activities, and up to $200,000 may 94.16be used for administration.94.17The Minnesota Historical Society, the State 94.18Arts Board, and Explore Minnesota Tourism 94.19may assist the commission in designing and 94.20implementing the grants program.94.21The commission shall encourage private 94.22contributions to match the state funds to 94.23the greatest extent possible. Contributions 94.24received by the commission are appropriated 94.25to the commission.94.26(b) $1,500,000 the first year is for a 94.27grant-in-aid program for county and local 94.28historical societies. The Minnesota Historical 94.29Society shall establish program guidelines 94.30and grant evaluation and award criteria for 94.31the program. Each dollar of state funds 94.32awarded to a grantee must be matched with 94.33nonstate funds on a dollar-for-dollar basis by 95.1a grantee. This is a onetime appropriation 95.2and is available until expended. 95.3(c) $500,000 the first year is for a grant-in-aid 95.4program for county and local historical 95.5societies for the repair, restoration, and 95.6preservation of historic sites and buildings 95.7in Minnesota. The Minnesota Historical 95.8Society shall establish program guidelines 95.9and grant evaluation and award criteria for 95.10the program. This is a onetime appropriation 95.11and is available until expended.95.12(d) $60,000 each year is to offset the revenue 95.13loss from not charging fees for general tours 95.14at the Capitol. This appropriation is added to 95.15the society's base budget.95.16(e) Notwithstanding Minnesota Statutes, 95.17section 138.668, the Minnesota Historical 95.18Society may not charge a fee for its general 95.19tours at the Capitol, but may charge fees for 95.20special programs other than general tours.

95.21Subd. 3.Preservation and Access10,953,00010,271,000

95.22$500,000 the first year is to conduct a 95.23conservation survey and for restoration, 95.24treatment, moving, and storage of the 1905 95.25historic furnishings and works of art in the 95.26Minnesota State Capitol. This is a onetime 95.27appropriation and is available until June 30, 95.282009.95.29$308,000 the first year is for the preservation 95.30of battle flags. This is a onetime appropriation 95.31and is available until June 30, 2009.

95.32Subd. 4.Pass-Through Appropriations771,000405,000

95.33(a) Minnesota International Center43,00043,000

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

96.1(c) Minnesota Military Museum234,000234,000

96.2(d) Farmamerica128,000128,000

96.3(e) Balances Forward

96.4Any unencumbered balance remaining in 96.5this subdivision the first year does not cancel 96.6but is available for the second year of the 96.7biennium.96.8$150,000 the first year is for a onetime 96.9grant to the Nicollet County Historical 96.10Society for renovation of the center exhibit 96.11gallery in the Treaty Site History Center 96.12in St. Peter, including additions to the 96.13center's infrastructure and state-of-the-art 96.14interpretive elements. This appropriation is 96.15available until the project is completed or 96.16abandoned, subject to Minnesota Statutes, 96.17section 16A.642.96.18$200,000 the first year is for a grant to 96.19the Hmong Studies Center at Concordia 96.20University in St. Paul, Minnesota, to be 96.21used for preservation of Hmong historical 96.22artifacts and documents. Any part of the 96.23appropriation not used in fiscal year 2008 is 96.24available for use in fiscal year 2009. This is 96.25a onetime appropriation and is available until 96.26expended.

96.27Subd. 5.Fund Transfer

96.28The Minnesota Historical Society may 96.29reallocate funds appropriated in and between 96.30subdivisions 2 and 3 for any program 96.31purposes.

96.32Subd. 6.Minnesota River Valley Study Group

97.1The Minnesota Historical Society in 97.2cooperation with Explore Minnesota Tourism 97.3shall establish and coordinate a Minnesota 97.4River Valley study group. The Minnesota 97.5River Valley study group shall be comprised 97.6of representatives of the Minnesota Valley 97.7Scenic Byway Alliance, the Department 97.8of Natural Resources, the Department 97.9of Transportation, the Minnesota Indian 97.10Affairs Council, the Region 6 West, Region 97.116 East, Region 8 and Region 9 Regional 97.12Development Commissions, the Minnesota 97.13Historical Society, Explore Minnesota 97.14Tourism, State Arts Board, and other 97.15interested parties. The study group must 97.16develop a plan for coordinated activities 97.17among organizations represented on the 97.18study group to enhance and promote historic 97.19sites, and historic, scenic, and natural 97.20features of the Minnesota River Valley 97.21area. Study topics shall include, but are 97.22not limited to, historic sites related to the 97.23Dakota Conflict of 1862 and the state and 97.24local preparations for the sesquicentennial of 97.25this event. The Minnesota Historical Society 97.26and Explore Minnesota Tourism shall report 97.27on the findings and recommendations of 97.28the Minnesota River Valley study group to 97.29the standing committees of the house of 97.30representatives and senate with jurisdiction 97.31over historic sites and tourism by March 1, 97.322008. The Minnesota River Valley study 97.33group shall serve without compensation.

97.34Sec. 5. BOARD OF THE ARTS

97.35Subdivision 1.Total Appropriation$9,975,000$9,982,000

98.1The amounts that may be spent for each 98.2purpose are specified in the following 98.3subdivisions.

98.4Subd. 2.Operations and Services637,000644,000

98.5Subd. 3.Grants Programs6,452,0006,452,000

98.6The base budget for the grants program 98.7shall be $5,924,000 in fiscal year 2010 and 98.8$5,924,000 in fiscal year 2011.

98.9Subd. 4.Regional Arts Councils2,886,0002,886,000

98.10The base budget for the regional arts councils 98.11shall be $2,539,000 in fiscal year 2010 and 98.12$2,539,000 in fiscal year 2011.

98.1398.14Sec. 6. MINNESOTA HUMANITIES COMMISSION$500,000$500,000

98.15Of this amount, ten percent each year is 98.16for lifelong learning programs in greater 98.17Minnesota communities that do not 98.18receive financial support from other large 98.19educational institutions. The base budget 98.20for the Minnesota Humanities Commission 98.21is $500,000 each year in the 2010-2011 98.22biennium.98.23    Sec. 7. Minnesota Statutes 2006, section 190.096, is amended to read:98.24190.096 BATTLE FLAGS; REPAIR.98.25    Subdivision 1. Authority to repair. Notwithstanding the provisions of Minnesota 98.26Statutes 1961, chapters 16 and 43, the adjutant general or the Minnesota Historical 98.27Society may contract for the repair, restoration, and preservation of regimental battle flags, 98.28standards, and guidons with persons or corporations skilled in such repair, restoration, and 98.29preservation, upon terms or conditions the adjutant general or the Minnesota Historical 98.30Society deems proper, subject to the approval of the commissioner of administration.98.31    Subd. 2. Surrender. Notwithstanding the provisions of this section or section 98.32190.09
         , the adjutant general or the Minnesota Historical Society may, for the purposes 98.33of this section, surrender the immediate custody and control of regimental battle flags, 99.1standards, and guidons under conditions and safeguards the adjutant general or the 99.2Minnesota Historical Society deems necessary and proper, for such time as is reasonably 99.3necessary for their restoration, after which they shall at once be again properly stored 99.4or displayed. The adjutant general or the Minnesota Historical Society shall provide 99.5adequate storage and display space for flags, standards, and guidons which have been 99.6repaired and restored. 99.7    Subd. 3.Battle flags; care and control.(a) The flags and colors carried by 99.8Minnesota troops in the Civil War, Indian Wars, and the Spanish-American War shall be 99.9preserved under the care and control of the Minnesota Historical Society. They shall be 99.10suitably encased and marked, and, so far as the historical society may deem it consistent 99.11with the safety of the flags and colors, they shall be publicly displayed in the capitol.99.12    (b) The flags and colors carried by Minnesota troops in subsequent wars shall be 99.13preserved under the care and control of the adjutant general. They shall be suitably 99.14encased and marked, and, so far as the adjutant general may deem it consistent with the 99.15safety of the flags and colors, shall be publicly displayed.99.16ARTICLE 1099.17HOUSING

99.18Section 1. SUMMARY OF APPROPRIATIONS.

99.19    The amounts shown in this section summarize direct appropriations, by fund, made 99.20in this article.

99.2120082009Total99.22General$ 67,896,000$ 49,040,000$116,936,00099.23TANF$3,075,000$3,075,000$6,150,00099.24Total$ 70,971,000$ 52,115,000$123,086,000

99.25Sec. 2. HOUSING.

99.26    The sums shown in the columns marked "Appropriations" are appropriated to the 99.27agencies and for the purposes specified. The appropriations are from the general fund, or 99.28another named fund, and are available for the fiscal years indicated for each purpose. The 99.29figures "2008" and "2009" used in this act mean that the appropriations listed under them 99.30are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The 99.31first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is 99.32fiscal years 2008 and 2009. Appropriations for the fiscal year ending June 30, 2007, are 99.33effective the day following final enactment.

100.1APPROPRIATIONS100.2Available for the Year100.3Ending June 30100.420082009

100.5Sec. 3. HOUSING FINANCE AGENCY

100.6Subdivision 1.Total Appropriation$ 70,971,000$ 52,115,000

100.7Appropriations by Fund100.820082009100.9General 67,896,000 49,040,000100.10TANF3,075,0003,075,000

100.11This appropriation is for transfer to the 100.12housing development fund. The amounts 100.13that may be spent from this appropriation 100.14for certain programs are specified in the 100.15following subdivisions. Except as otherwise 100.16indicated, this transfer is part of the agency's 100.17permanent budget base.100.18Of this amount, $3,075,000 the first year 100.19and $3,075,000 the second year are onetime 100.20appropriations from the state's federal TANF 100.21block grant under Title I of Public Law 100.22Number 104-193 to the commissioner of 100.23human services, to reimburse the housing 100.24development fund for assistance under 100.25the programs for families receiving TANF 100.26assistance under the MFIP program. The 100.27commissioner of human services shall make 100.28monthly reimbursements to the housing 100.29development fund. The commissioner 100.30of human services shall not make any 100.31reimbursement which the commissioner 100.32determines would be subject to a penalty 100.33under Code of Federal Regulations, section 100.34262.1. If the appropriation in either year is 101.1insufficient, the appropriation for the other 101.2year is available.

101.3101.4Subd. 2.Economic Development and Housing Challenge

101.5$21,308,000 the first year and $9,622,000 101.6the second year are for the economic 101.7development and housing challenge program 101.8under Minnesota Statutes, section 462A.33, 101.9for housing that:101.10(1) conserves energy and utilizes sustainable, 101.11healthy building materials;101.12(2) preserves sensitive natural areas and 101.13open spaces and minimizes the need for new 101.14infrastructure; 101.15(3) is accessible to jobs and services through 101.16integration with transportation or transit 101.17systems; and101.18(4) expands the mix of housing choices in 101.19a community by diversifying the levels of 101.20housing affordability. 101.21The agency may fund demonstration projects 101.22that have unique approaches to achieving the 101.23housing described above. 

101.24Subd. 3.Housing Trust Fund

101.25$15,195,000 the first year and $11,945,000 101.26the second year are for the housing trust fund 101.27account created under Minnesota Statutes, 101.28section 462A.201, for the purposes of that 101.29section. Of this amount, $1,500,000 the first 101.30year and $1,500,000 in the second year is a 101.31onetime appropriation from the state's federal 101.32TANF block grant. The general fund base 101.33is reduced by $1,890,000 each year in fiscal 101.34year 2010 and fiscal year 2011. 

102.1102.2Subd. 4.Bridges Rental Assistance for Mentally Ill

102.3$3,400,000 the first year and $3,400,000 102.4the second year are for a rental housing 102.5assistance program for persons with a mental 102.6illness or families with an adult member with 102.7a mental illness under Minnesota Statutes, 102.8section 462A.2097.

102.9Subd. 5.Family Homeless Prevention

102.10$7,565,000 the first year and $7,565,000 102.11the second year are for family homeless 102.12prevention and assistance programs under 102.13Minnesota Statutes, section 462A.204. Of 102.14this amount, $1,575,000 in the first year and 102.15$1,575,000 in the second year is a onetime 102.16appropriation from the state's federal TANF 102.17block grant. The general fund base in fiscal 102.18year 2010 and fiscal year 2011 is $7,465,000 102.19each year.

102.20Subd. 6.Home Ownership Assistance Fund

102.21$1,885,000 the first year and $1,885,000 102.22the second year are for the home ownership 102.23assistance program under Minnesota 102.24Statutes, section 462A.21, subdivision 8. 102.25The base is reduced by $1,000,000 each year 102.26in fiscal year 2010 and fiscal year 2011.

102.27Subd. 7.Affordable Rental Investment Fund

102.28$11,496,000 the first year and $8,996,000 102.29the second year are for the affordable rental 102.30investment fund program under Minnesota 102.31Statutes, section 462A.21, subdivision 8b. 102.32Of this amount, $2,500,000 the first year is a 102.33onetime appropriation.103.1This appropriation is to finance the 103.2acquisition, rehabilitation, and debt 103.3restructuring of federally assisted rental 103.4property and for making equity take-out loans 103.5under Minnesota Statutes, section 462A.05, 103.6subdivision 39. The owner of the federally 103.7assisted rental property must agree to 103.8participate in the applicable federally assisted 103.9housing program and to extend any existing 103.10low-income affordability restrictions on the 103.11housing for the maximum term permitted. 103.12The owner must also enter into an agreement 103.13that gives local units of government, 103.14housing and redevelopment authorities, 103.15and nonprofit housing organizations the 103.16right of first refusal if the rental property 103.17is offered for sale. Priority must be given 103.18among comparable federally assisted rental 103.19properties to properties with the longest 103.20remaining term under an agreement for 103.21federal rental assistance. Priority must also 103.22be given among comparable rental housing 103.23developments to developments that are or 103.24will be owned by local government units, a 103.25housing and redevelopment authority, or a 103.26nonprofit housing organization.103.27This appropriation may also be used to 103.28finance the acquisition, rehabilitation, and 103.29debt restructuring of existing supportive 103.30housing properties. For purposes of this 103.31subdivision, "supportive housing" means 103.32affordable rental housing with links to 103.33services necessary for individuals, youth, and 103.34families with children to maintain housing 103.35stability.104.1Of this amount, $2,500,000 is appropriated 104.2for the purposes of financing the 104.3rehabilitation and operating costs to preserve 104.4public housing. For purposes of this 104.5subdivision, "public housing" is housing for 104.6low-income persons and households financed 104.7by the federal government and owned and 104.8operated by public housing authorities and 104.9agencies. Eligible public housing authorities 104.10must have a public housing assessment 104.11system rating of standard or above. Priority 104.12among comparable proposals must be given 104.13to proposals that maximize federal or local 104.14resources to finance the capital and operating 104.15costs.

104.16104.17Subd. 8.Housing Rehabilitation and Accessibility

104.18$5,657,000 the first year and $4,287,000 the 104.19second year are for the housing rehabilitation 104.20and accessibility program under Minnesota 104.21Statutes, section 462A.05, subdivisions 14a 104.22and 15a.

104.23Subd. 9.Urban Indian Housing Program

104.24$187,000 the first year and $187,000 the 104.25second year are for the urban Indian housing 104.26program under Minnesota Statutes, section 104.27462A.07, subdivision 15. The base is 104.28reduced by $7,000 each year in fiscal year 104.292010 and fiscal year 2011.

104.30Subd. 10.Tribal Indian Housing Program

104.31$1,683,000 the first year and $1,683,000 104.32the second year are for the tribal Indian 104.33housing program under Minnesota Statutes, 104.34section 462A.07, subdivision 14. The base is 105.1reduced by $468,000 each year in fiscal year 105.22010 and fiscal year 2011.

105.3105.4Subd. 11.Home Ownership Education, Counseling, and Training

105.5$2,135,000 the first year and $2,135,000 105.6the second year are appropriated for the 105.7home ownership education, counseling, and 105.8training program under Minnesota Statutes, 105.9section 462A.209. The base is reduced by 105.10$1,270,000 each year in fiscal year 2010 and 105.11fiscal year 2011. Of this amount, $630,000 105.12the first year is for:105.13(1) foreclosure prevention and assistance 105.14activities in communities that have mortgage 105.15foreclosure rates that exceed the statewide 105.16average foreclosure rate for the most recent 105.17quarter for which data is available; and105.18(2) home buyer education and counseling 105.19activities by organizations that have 105.20experience working with emerging markets 105.21or partner with organizations with experience 105.22working with emerging markets and that have 105.23demonstrated a commitment to increasing the 105.24homeownership rate of emerging markets.

105.25Subd. 12.Capacity Building Grants

105.26$820,000 for the biennium is for capacity 105.27building grants under Minnesota Statutes 105.28section 462A.21, subdivision 3b. Of this 105.29amount, $140,000 is for continuum of 105.30care planning in greater Minnesota. This 105.31appropriation is the agency's base budget for 105.32this program.

105.33Subd. 13.Grant for Hennepin County

106.1$50,000 is a onetime appropriation in the 106.2first year for a grant to Hennepin County 106.3for collaboration with the Center for Urban 106.4and Regional Affairs at the University 106.5of Minnesota for the development of a 106.6predictive, data-driven model that can be 106.7used to identify at-risk properties in order to 106.8target resources to prevent foreclosure.106.9    Sec. 4. Minnesota Statutes 2006, section 462A.21, subdivision 8b, is amended to read:106.10    Subd. 8b. Family rental housing. It may establish a family rental housing 106.11assistance program to provide loans or direct rental subsidies for housing for families 106.12with incomes of up to 80 percent of state median income, or to provide grants for the 106.13operating cost of public housing. Priority must be given to those developments with 106.14resident families with the lowest income. The development may be financed by the 106.15agency or other public or private lenders. Direct rental subsidies must be administered by 106.16the agency for the benefit of eligible families. Financial assistance provided under this 106.17subdivision to recipients of aid to families with dependent children must be in the form 106.18of vendor payments whenever possible. Loans, grants, and direct rental subsidies under 106.19this subdivision may be made only with specific appropriations by the legislature. The 106.20limitations on eligible mortgagors contained in section 
         462A.03, subdivision 13, do not 106.21apply to loans for the rehabilitation of existing housing under this subdivision. 106.22    Sec. 5. Minnesota Statutes 2006, section 462A.33, subdivision 3, is amended to read:106.23    Subd. 3. Contribution requirement. Fifty percent of the funds appropriated for 106.24this section must be used for challenge grants or loans which meet the requirements of this 106.25subdivision for housing proposals with financial or in-kind contributions from nonstate 106.26resources that reduce the need for deferred loan or grant funds from state resources. These106.27Challenge grants or loans must be used for economically viable homeownership or rental 106.28housing proposals that:106.29    (1) include a financial or in-kind contribution from an area employer and either a unit 106.30of local government or a private philanthropic, religious, or charitable organization; and106.31    (2) address the housing needs of the local work force.106.32    Among comparable proposals, preference must be given to proposals that include 106.33contributions from nonstate resources for the greatest portion of the total development 106.34cost. Comparable proposals with contributions from local units of government or private 107.1philanthropic, religious, or charitable organizations must be given preference in awarding 107.2grants or loans.107.3    For the purpose of this subdivision, an employer a contribution may consist partially 107.4or wholly of the premium paid for federal housing tax credits.107.5    Preference for grants and loans shall also be given to comparable proposals that 107.6include a financial or in-kind contribution from a unit of local government, an area 107.7employer, and a private philanthropic, religious, or charitable organization.107.8    Sec. 6. Minnesota Statutes 2006, section 469.021, is amended to read:107.9469.021 PREFERENCES.107.10    As between applicants equally in need and eligible for occupancy of a dwelling 107.11and at the rent involved, preference shall be given to disabled veterans, persons with 107.12disabilities, and families of service persons who died in service and to families of veterans. 107.13In admitting families of low income to dwelling accommodations in any housing project an 107.14authority shall, as far as is reasonably practicable, give consideration to applications from 107.15families to which aid for dependent children is payable receiving assistance under chapter 107.16256J, and to resident families to whom public assistance or supplemental security income 107.17for the aged, blind, and disabled is payable, when those families are otherwise eligible.107.18    Sec. 7. MORTGAGE FORECLOSURE REDUCTION.107.19    The commissioner of the Minnesota Housing Finance Agency, in consultation 107.20with the commissioner of commerce, the attorney general, the Minnesota Mortgage 107.21Bankers' Association, Legal Services of Minnesota, the Minnesota Mortgage Foreclosure 107.22Prevention Association, and the Minnesota Sheriffs' Association shall evaluate the 107.23provisions of Minnesota Statutes, sections 580.04 and 580.041, to determine if corrective 107.24actions could be taken by the 2008 legislature to reduce mortgage foreclosures in the state.