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SF 2089

1st Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to state government; appropriating money for jobs, economic
1.3development, and housing; establishing and modifying certain programs;
1.4providing for regulation of certain activities and practices; providing for accounts,
1.5assessments, and fees;amending Minnesota Statutes 2006, sections 116J.401,
1.6by adding a subdivision; 116J.551, subdivision 1; 116J.554, subdivision 2;
1.7116J.555, subdivision 1; 116J.575, subdivisions 1, 1a; 116J.966, subdivision 1;
1.8116L.01, by adding a subdivision; 116L.04, subdivision 1a; 116L.17, subdivision
1.91; 116L.20, subdivision 1; 116L.666, subdivision 1; 116M.18, subdivision
1.106a; 177.27, subdivisions 1, 4, 5, 8, 9, 10, by adding a subdivision; 177.28,
1.11subdivision 1; 177.30; 177.43, subdivisions 3, 4, 6, by adding a subdivision;
1.12178.01; 178.02; 178.03, subdivision 3; 178.041, subdivision 1; 181.78, by adding
1.13a subdivision; 181.932, subdivision 1; 181.935; 182.65, subdivision 2; 190.096;
1.14268.085, subdivision 3; 268.196, by adding a subdivision; 268A.01, subdivision
1.1513, by adding a subdivision; 268A.085, subdivision 1; 268A.15, by adding a
1.16subdivision; 298.22, subdivision 2; 298.227; 325E.37, subdivision 6; 326.01,
1.17subdivision 6g; 326.241, subdivisions 1, 2; 326.242, subdivisions 3d, 5, 11, by
1.18adding a subdivision; 326.37, subdivision 1, by adding a subdivision; 326.38;
1.19326.40, subdivision 1; 326.401, subdivision 2; 326.405; 326.42, subdivision 1;
1.20326.46; 326.461, by adding a subdivision; 326.47, subdivisions 2, 6; 326.48,
1.21subdivisions 1, 2, by adding a subdivision; 326.50; 326.51; 326.52; 341.28,
1.22subdivision 2, by adding a subdivision; 341.32, subdivision 2; 341.321; 462.39,
1.23by adding a subdivision; 462A.21, subdivision 8b; 462A.33, subdivision 3;
1.24469.021; 541.051; proposing coding for new law in Minnesota Statutes, chapters
1.25116J; 116O; 154; 177; 179; 181; 181A; 182; 270; 326; repealing Minnesota
1.26Statutes 2006, sections 16C.18, subdivision 2; 176.042; 268.035, subdivision 9;
1.27326.01, subdivision 4; 326.242, subdivision 4; 326.45.
1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29ARTICLE 1
1.30JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS SUMMARY

1.31
Section 1. SUMMARY.
1.32    The amounts shown in this section summarize direct appropriations, by fund, made
1.33in this act.
2.1
2008
2009
Total
2.2
General
$
213,756,000
$
156,634,000
$
370,390,000
2.3
Workforce Development
15,510,000
15,526,000
31,036,000
2.4
Remediation
700,000
700,000
1,400,000
2.5
2.6
State Government Special
Revenue
1,877,000
1,925,000
3,802,000
2.7
Workers' Compensation
23,379,000
23,763,000
47,142,000
2.8
TANF
3,075,000
3,075,000
6,150,000
2.9
Total
$
258,297,000
$
201,623,000
$
459,920,000

2.10ARTICLE 2
2.11JOBS AND ECONOMIC DEVELOPMENT

2.12    Section 1. SUMMARY OF APPROPRIATIONS.
2.13
2008
2009
Total
2.14
General
$
94,685,000
$
60,084,000
$
154,769,000
2.15
Workforce Development
15,510,000
15,526,000
31,036,000
2.16
Remediation
700,000
700,000
1,400,000
2.17
2.18
State Government Special
Revenue
1,877,000
1,925,000
3,802,000
2.19
Workers' Compensation
23,379,000
23,763,000
47,142,000
2.20
Total
$
136,151,000
$
101,998,000
$
238,149,000

2.21
Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.
2.22    The sums shown in the columns marked "Appropriations" are appropriated to the
2.23agencies and for the purposes specified in this article. The appropriations are from the
2.24general fund, or another named fund, and are available for the fiscal years indicated
2.25for each purpose. The figures "2008" and "2009" used in this article mean that the
2.26appropriations listed under them are available for the fiscal year ending June 30, 2008, or
2.27June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
2.28year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
2.29year ending June 30, 2007, are effective the day following final enactment.
2.30
APPROPRIATIONS
2.31
Available for the Year
2.32
Ending June 30
2.33
2008
2009

2.34
2.35
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
2.36
Subdivision 1.Total Appropriation
$
101,587,000
$
66,589,000
3.1
Appropriations by Fund
3.2
2008
2009
3.3
General
86,142,000
51,144,000
3.4
Remediation
700,000
700,000
3.5
3.6
Workforce
Development
14,745,000
14,745,000
3.7The amounts that may be spent for each
3.8purpose are specified in the following
3.9subdivisions.
3.10
3.11
Subd. 2.Business and Community
Development
49,058,000
14,372,000
3.12
Appropriations by Fund
3.13
General
48,358,000
13,672,000
3.14
Remediation
700,000
700,000
3.15(a)(1) $1,100,000 is for a grant under
3.16Minnesota Statutes, section 116J.421,
3.17to the Rural Policy and Development
3.18Center at St. Peter, Minnesota. The grant
3.19shall be used for research and policy
3.20analysis on emerging economic and social
3.21issues in rural Minnesota, to serve as a
3.22policy resource center for rural Minnesota
3.23communities, to encourage collaboration
3.24across higher education institutions, to
3.25provide interdisciplinary team approaches
3.26to research and problem-solving in rural
3.27communities, and to administer overall
3.28operations of the center.
3.29(2) The grant shall be provided upon the
3.30condition that each state-appropriated
3.31dollar be matched with a nonstate dollar.
3.32Acceptable matching funds are nonstate
3.33contributions that the center has received and
3.34have not been used to match previous state
3.35grants. Any funds not spent the first year are
3.36available the second year.
4.1(b) $200,000 each year is for a grant to
4.2WomenVenture for women's business
4.3development programs.
4.4(c) $500,000 the first year is for a grant to
4.5University Enterprise Laboratories (UEL)
4.6for its direct and indirect expenses to support
4.7efforts to encourage the growth of early-stage
4.8and emerging bioscience companies. UEL
4.9must provide a report by June 30 each year
4.10to the commissioner on the expenditures
4.11until the appropriation is expended. This is a
4.12onetime appropriation and is available until
4.13expended.
4.14(d) $2,180,000 the first year is for grants
4.15under Minnesota Statutes, section 116J.571,
4.16for the redevelopment grant program. This is
4.17a onetime appropriation.
4.18(e) $100,000 each year is to the Public
4.19Facilities Authority for the small community
4.20wastewater treatment program under
4.21Minnesota Statutes, chapter 446A.
4.22(f) $510,000 the first year is for the urban
4.23initiative program under Minnesota Statutes,
4.24chapter 116M, of which, $255,000 is for
4.25a grant to the Metropolitan Economic
4.26Development Association for continuing
4.27minority business development programs
4.28in the metropolitan area. This is a onetime
4.29appropriation.
4.30(g) $85,000 each year is for a grant to the
4.31Minnesota Inventors Congress, of which
4.32$10,000 must be used for youth inventors.
4.33(h) $151,000 the first year is for a grant to the
4.34city of Faribault to design, construct, furnish,
4.35and equip renovations to accommodate
5.1handicapped accessibility at the Paradise
5.2Center for the Arts.
5.3(i) $3,000,000 the first year is for loans
5.4authorized under Minnesota Statutes, section
5.5116J.417. This appropriation is available
5.6until expended.
5.7(j) $1,000,000 each year is to Minnesota
5.8Technology, Inc. for the small business
5.9growth acceleration program established
5.10under Minnesota Statutes, section 116O.115.
5.11This is a onetime appropriation.
5.12(k) $350,000 the first year is for a grant to
5.13the city of Northome for the construction
5.14of a new municipal building to replace the
5.15structures damaged by fire on July 22, 2006.
5.16This appropriation is available when the
5.17commissioner determines that a sufficient
5.18match is available from nonstate sources to
5.19complete the project.
5.20(l) $325,000 each year is for a technology
5.21and commercialization unit established
5.22under article 7, section 32. This is a onetime
5.23appropriation.
5.24(m) $500,000 in the first year is for a
5.25grant to the city of Worthington for an
5.26agricultural-based bioscience training and
5.27testing center. Funds appropriated under this
5.28section must be used to provide a training
5.29and testing facility for incubator firms
5.30developing new agricultural processes and
5.31products. This is a onetime appropriation
5.32and is available until expended.
5.33(n) $2,200,000 in the first year is for a grant
5.34to BioBusiness Alliance of Minnesota for
5.35bioscience business development programs
6.1to promote and position the state as a global
6.2leader in bioscience business activities.
6.3These funds may be used for:
6.4(1) completion and periodic updating of
6.5a statewide bioscience business industry
6.6assessment of business technology
6.7enterprises and Minnesota's competitive
6.8position employing annual updates to federal
6.9industry classification data;
6.10(2) long-term strategic planning that includes
6.11projections of market changes resulting
6.12from developments in biotechnology and the
6.13development of 20-year goals, strategies, and
6.14identified objectives for renewable energy,
6.15medical devices, biopharma, and biologics
6.16business development in Minnesota;
6.17(3) the design and construction of a
6.18Minnesota focused bioscience business
6.19model to test competing strategies and
6.20scenarios, evaluate options, and forecast
6.21outcomes; and
6.22(4) creation of a bioscience business
6.23resources network that includes development
6.24of a statewide bioscience business economic
6.25development framework to encourage
6.26bioscience business development and
6.27encourage spin-off activities, attract
6.28bioscience business location or expansion in
6.29Minnesota, and establish a local capability to
6.30support strategic system level planning for
6.31industry, government, and academia.
6.32This appropriation is available until June 30,
6.332009.
6.34(o) $325,000 is for a grant to the Walker
6.35Area Community Center, Inc., to construct,
7.1furnish, and equip the Walker Area
7.2Community Center. This appropriation is
7.3not available until the commissioner has
7.4determined that an amount sufficient to
7.5complete the project has been committed
7.6from nonstate sources.
7.7(p) $120,000 the first year is for a grant
7.8to the Pine Island Economic Development
7.9Authority for predesign to upgrade and
7.10extend utilities to serve Elk Run Bioscience
7.11Research Park and The Falls - Healthy
7.12Living By Nature, an integrated medicine
7.13facility. This is a onetime appropriation and
7.14is available until expended.
7.15(q) $300,000 the first year is for a grant
7.16to Thomson Township for infrastructure
7.17improvements for the industrial park. This is
7.18a onetime appropriation.
7.19(r) $75,000 the first year for a grant to
7.20Le Sueur County for the cost of cleaning
7.21debris from lakes in Le Sueur County,
7.22caused by the August 24, 2006, tornado in
7.23southern Le Sueur County. This is a onetime
7.24appropriation.
7.25(s) $3,000,000 the second year is for
7.26bioscience business development and
7.27commercialization grants. The commissioner
7.28shall designate an evaluation team to accept
7.29grant applications, review and evaluate
7.30grant proposals, and select up to five grant
7.31proposals to receive funding each year.
7.32The evaluation team shall be comprised
7.33of not more than 12 members including:
7.34the commissioner or the commissioner's
7.35designee; representatives of bioscience
8.1businesses; public and private institutions
8.2of higher education; private investment
8.3companies; a nonprofit entity that qualifies as
8.4a 501(c)6 under the Internal Revenue Code
8.5and is a trade association representing the
8.6life sciences industry; and a bio business
8.7alliance that qualifies as a 501(c)3 under the
8.8Internal Revenue Code. The criteria used
8.9by the evaluation team in evaluating grant
8.10proposals must include, but is not limited
8.11to: the potential to create and sustain jobs
8.12within the state of Minnesota; the potential
8.13for long-term business activity, growth,
8.14and expansion in Minnesota; the level of
8.15technological maturity; the potential to attract
8.16private investment; and the availability and
8.17readiness of markets. The commissioner
8.18must report to the standing committees of
8.19the house of representatives and the senate
8.20having jurisdiction over bioscience and
8.21technology issues by February 1 each year
8.22on the number, type, and amounts of grants
8.23awarded and the activities of the grant
8.24recipients. This is a onetime appropriation
8.25and is available until expended.
8.26(t) $1,500,000 the first year is for the urban
8.27challenge grant program under Minnesota
8.28Statutes, section 116M.18, of which
8.29$1,000,000 is for a grant to the Neighborhood
8.30Development Center for assistance necessary
8.31to retain minority business enterprises
8.32at the Global Market. This is a onetime
8.33appropriation.
8.34(u) $375,000 each year is to develop and
8.35operate a bioscience business marketing
8.36program to market Minneota bioscience
9.1businesses and business opportunities
9.2to other states and other countries. The
9.3bioscience business marketing program must
9.4emphasize bioscience business location and
9.5expansion opportunities in communities
9.6outside of the seven-county metropolitan
9.7area as defined in Minnesota Statutes,
9.8section 473.121, subdivision 2, that have
9.9established collaborative plans among two
9.10or more municipal units for bioscience
9.11business activities, and that are within 15
9.12miles of a four-year, baccalaureate degree
9.13granting institution or a two-year technical
9.14or community college that offers bioscience
9.15curricula. The commissioner must report
9.16to the committees of the senate and house
9.17of representatives having jurisdiction
9.18over bioscience and technology issues by
9.19February 1 of each year on the expenditures
9.20of these funds and the promotional activities
9.21undertaken to market the Minnesota
9.22bioscience industry to persons outside of the
9.23state. This is a onetime appropriation and is
9.24available until expended.
9.25(v) $225,000 each year is for the purposes
9.26of the nanotechnology development fund
9.27program (NDF) established in section 12, for
9.28grants to promote increased use of advanced
9.29instrumentation for nanomaterials analysis,
9.30to be awarded on a one-to-one matching basis
9.31to qualifying Minnesota small businesses.
9.32This is a onetime appropriation.
9.33(w) $50,000 the first year is for a contract
9.34with a public higher education institution
9.35in Minnesota jointly entered into with the
9.36Center for Rural Development to study the
10.1needs of the renewable energy economy for
10.2trained employees and the training required
10.3for those employees. The study must include
10.4extensive consultation and involvement of
10.5representatives of the renewable energy
10.6industry, environmental interests, labor, the
10.7University of Minnesota, and the Minnesota
10.8State Colleges and Universities. The
10.9commissioner shall report the results of the
10.10study to the chairs of the finance divisions
10.11of the legislature with jurisdiction over
10.12economic development, energy, and higher
10.13education by November 1, 2007. This is a
10.14onetime appropriation.
10.15(x) $25,000,000 is for the Minnesota
10.16minerals 21st century fund created in
10.17Minnesota Statutes, section 116J.423,
10.18to restore the money unallotted by the
10.19commissioner of finance in 2003 pursuant
10.20to Minnesota Statutes, section 16A.152.
10.21This appropriation may be used as provided
10.22in Minnesota Statutes, section 116J.423,
10.23subdivision 2. This appropriation is available
10.24until expended.
10.25(y) $900,000 each year is for a grant to the
10.26city of St. Paul to be used to pay debt service
10.27on bond obligations issued by the city of St.
10.28Paul in 1996 for the convention center.
10.29(z) $189,000 each year is appropriated from
10.30the general fund to the commissioner of
10.31employment and economic development for
10.32grants of $63,000 to eligible organizations
10.33each year and for the purposes of this
10.34paragraph. Each state grant dollar must be
10.35matched with $1 of nonstate funds. Any
11.1balance in the first year does not cancel but is
11.2available in the second year.
11.3The commissioner of employment and
11.4economic development must make grants to
11.5organizations to assist in the development
11.6of entrepreneurs and small businesses.
11.7Three grants must be awarded to continue
11.8or to develop a program. One grant must
11.9be awarded to the Riverbend Center for
11.10Entrepreneurial Facilitation in Blue Earth
11.11County, and two to other organizations
11.12serving Faribault and Martin Counties. Grant
11.13recipients must report to the commissioner
11.14by February 1 of each year that the
11.15organization receives a grant with the
11.16number of customers served; the number of
11.17businesses started, stabilized, or expanded;
11.18the number of jobs created and retained; and
11.19business success rates. The commissioner
11.20must report to the house of representatives
11.21and senate committees with jurisdiction
11.22over economic development finance on the
11.23effectiveness of these programs for assisting
11.24in the development of entrepreneurs and
11.25small businesses.
11.26(aa) $10,000 for the biennium is to the
11.27commissioner of employment and economic
11.28development for the Minnesota investment
11.29fund. This grant is not subject to grant
11.30limitations under section 116J.8731,
11.31subdivision 5.
11.32
Subd. 3.Workforce Development
49,531,000
49,197,000
11.33
Appropriations by Fund
11.34
General
34,786,000
34,452,000
11.35
11.36
Workforce
Development
14,745,000
14,745,000
12.1(a) $6,785,000 each year is for the Minnesota
12.2job skills partnership program under
12.3Minnesota Statutes, sections 116L.01 to
12.4116L.17. If the appropriation for either
12.5year is insufficient, the appropriation for the
12.6other year is available. This appropriation is
12.7available until spent.
12.8(b) $305,000 each year is for a grant under
12.9Minnesota Statutes, section 116J.8747, to
12.10Twin Cities RISE! to provide training to
12.11hard-to-train individuals.
12.12(c) $1,375,000 each year is from
12.13the workforce development fund for
12.14Opportunities Industrialization Center
12.15programs.
12.16(d) $5,864,000 each year is from the general
12.17fund and $6,920,000 each year is from the
12.18workforce development fund for extended
12.19employment services for persons with
12.20severe disabilities or related conditions under
12.21Minnesota Statutes, section 268A.15. Of this,
12.22$125,000 each year and in the base for fiscal
12.23years 2010 and 2011 is to supplement funds
12.24paid for wage incentive for the community
12.25support fund established in Minnesota Rules,
12.26part 3300.2045.
12.27(e) $1,900,000 each year is for grants for
12.28programs that provide employment support
12.29services to persons with mental illness under
12.30Minnesota Statutes, sections 268A.13 and
12.31268A.14. Up to $77,000 each year may be
12.32used for administrative and salary expenses.
12.33(f) $2,190,000 each year is for grants under
12.34Minnesota Statutes, section 268A.11, for the
12.35eight centers for independent living. Money
13.1not expended the first year is available the
13.2second year.
13.3(g) $5,940,000 each year is for State Services
13.4for the Blind activities.
13.5(h) $150,000 each year is from the general
13.6fund and $175,000 each year is from the
13.7workforce development fund for grants under
13.8Minnesota Statutes, section 268A.03, to Rise,
13.9Inc. for the Minnesota Employment Center
13.10for People Who are Deaf or Hard-of-Hearing.
13.11Money not expended the first year is
13.12available the second year.
13.13(i) $9,021,000 each year from the general
13.14fund is for the vocational rehabilitation
13.15program and $325,000 each year from
13.16the workforce development fund is for
13.17interpreters for a regional transition program
13.18specializing in culturally appropriate
13.19transition services leading to employment
13.20for deaf, hard-of-hearing, and deaf-blind
13.21students.
13.22(j) $150,000 each year is for a grant to
13.23Advocating Change Together for training,
13.24technical assistance, and resource materials
13.25to persons with developmental and mental
13.26illness disabilities.
13.27(k) $300,000 each year for a grant to
13.28Lifetrack Resources for its immigrant/refugee
13.29collaborative programs, including those
13.30related to job-seeking skills and workplace
13.31orientation, intensive job development,
13.32functional work English, and on-site job
13.33coaching. $50,000 of this amount is for a
13.34pilot Lifetrack project in Rochester.
14.1(l) $1,075,000 each year is for the youthbuild
14.2program under Minnesota Statutes, sections
14.3116L.361 to 116L.366.
14.4(m) $1,350,000 each year is from the
14.5workforce development fund for grants
14.6to fund summer youth employment in
14.7Minneapolis. The grants shall be used to
14.8fund up to 500 jobs for youth each summer.
14.9Of this appropriation, $350,000 each year is
14.10for a grant to the learn-to-earn summer youth
14.11employment program. The commissioner
14.12shall establish criteria for awarding the
14.13grants. This appropriation is available in
14.14either year of the biennium and is available
14.15until spent.
14.16(n) $50,000 each year is for a grant
14.17to Northern Connections in Perham to
14.18implement and operate a pilot workforce
14.19program that provides one-stop supportive
14.20services to assist individuals as they transition
14.21into the workforce. This appropriation is
14.22available to the extent it is matched by $1 of
14.23nonstate money for each $1 of state money.
14.24(o) $100,000 each year is for a grant to
14.25Ramsey County Workforce Investment Board
14.26for the development of the building lives
14.27program. This is a onetime appropriation.
14.28(p) $300,000 each year is for a grant to the
14.29Hennepin-Carver Workforce Investment
14.30Board (WIB) to coordinate with the Partners
14.31for Progress Regional Skills Consortium
14.32to provide employment and training as
14.33demonstrated by the Twin Cities regional
14.34health care training partnership project.
15.1(q) $160,000 the first year is for a grant
15.2to Workforce Development, Inc., for a
15.3pilot project to provide demand-driven
15.4employment and training services to
15.5welfare recipients and other economically
15.6disadvantaged populations in Mower,
15.7Freeborn, Dodge, and Steele Counties. This
15.8is a onetime appropriation.
15.9(r) $200,000 each year is for a grant to
15.10HIRED to operate its industry sector training
15.11initiatives, which provide employee training
15.12developed in collaboration with employers in
15.13specific, high-demand industries. This is a
15.14onetime appropriation.
15.15(s) $200,000 the first year is for a grant
15.16to a nonprofit organization. The nonprofit
15.17organization must work on behalf of all
15.18licensed vendors to coordinate their efforts
15.19to respond to solicitations or other requests
15.20from private and governmental units as
15.21defined in Minnesota Statutes, section
15.22471.59, subdivision 1, in order to increase
15.23employment opportunities for persons with
15.24disabilities.
15.25(t) $3,500,000 each year from the workforce
15.26development fund is for the Minnesota youth
15.27program under Minnesota Statutes, section
15.28116L.56 and 116L.561.
15.29(u) $500,000 each year from the workforce
15.30development fund is for a grant to the
15.31Minnesota Alliance of Boys and Girls
15.32Clubs to administer a statewide project
15.33of youth job skills development. This
15.34project, which may have career guidance
15.35components, including health and life skills,
16.1is to encourage, train, and assist youth in
16.2job-seeking skills, workplace orientation,
16.3and job site knowledge through coaching.
16.4This grant requires a 25 percent match from
16.5nonstate resources.
16.6(v) $350,000 in each year from the workforce
16.7development fund is for a grant to Ramsey
16.8County for a summer youth employment
16.9program to place at-risk youth, ages 14 to 21,
16.10in subsidized summer employment.
16.11(w) $10,000 the first year is for a study on
16.12ways to promote employment opportunities
16.13for minorities, with a particular focus on
16.14opportunities for American blacks, in the
16.15state of Minnesota. The study should focus
16.16on how to significantly expand the job
16.17training available to minorities and promote
16.18substantial increases in the wages paid to
16.19minorities, at least to a rate well above living
16.20wage, and within several years, to equality.
16.21The commissioner must report on the study
16.22to the governor and the chair of the finance
16.23committee in each house of the legislature
16.24that has jurisdiction over employment by
16.25January 15, 2008, with recommendations for
16.26implementing the findings.
16.27The commissioner must provide funding
16.28for the Minnesota Conservation Corps to
16.29provide learning stipends for deaf students
16.30and wages for interpreters participating in
16.31the MCC summer youth program.
16.32
Subd. 4.State-Funded Administration
2,998,000
3,020,000
16.33The first $1,450,000 deposited in each
16.34year of the biennium and in each year of
16.35subsequent bienniums into the contingent
17.1account created under Minnesota Statutes,
17.2section 268.196, subdivision 3, shall be
17.3transferred by June 30 of each fiscal year
17.4to the workforce development fund created
17.5under Minnesota Statutes, section 116L.20.
17.6Deposits in excess of $1,450,000 shall be
17.7transferred by June 30 of each fiscal year to
17.8the general fund.

17.9
17.10
Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY
17.11
Subdivision 1.Total Appropriation
$
29,002,000
$
29,794,000
17.12
Appropriations by Fund
17.13
2008
2009
17.14
General
4,644,000
5,035,000
17.15
17.16
Workers'
Compensation
21,716,000
22,053,000
17.17
17.18
Workforce
Development
765,000
781,000
17.19
17.20
State Government
Special Revenue
1,877,000
1,925,000
17.21The amounts that may be spent for each
17.22purpose are specified in the following
17.23subdivisions.
17.24
Subd. 2.Workers' Compensation
10,381,000
10,659,000
17.25This appropriation is from the workers'
17.26compensation fund.
17.27$200,000 each year is for grants to the
17.28Vinland Center for rehabilitation services.
17.29
Subd. 3.Safety Codes and Services
9,949,000
10,134,000
17.30$5,292,000 the first year and $5,388,000
17.31the second year are from the workers'
17.32compensation fund. $1,877,000 the first year
17.33and $1,925,000 the second year are from the
17.34state government special revenue fund.
18.1$1,000,000 each year is from the workers'
18.2compensation fund for patient safe handling
18.3grants under Minnesota Statutes, section
18.4182.6553.
18.5$100,000 each year is from the workers'
18.6compensation fund for the operation of
18.7the meatpacking industry workers' rights
18.8ombudsman under Minnesota Statutes,
18.9section 179.87.
18.10
Subd. 4.Labor Standards/Apprenticeship
2,629,000
2,995,000
18.11
Appropriations by Fund
18.12
General
1,864,000
2,214,000
18.13
18.14
Workforce
Development
765,000
781,000
18.15The appropriation from the workforce
18.16development fund is for the apprenticeship
18.17program under Minnesota Statutes, chapter
18.18178, and includes $100,000 each year for
18.19labor education and advancement program
18.20grants.
18.21$360,000 the first year and $300,000 the
18.22second year from the general fund are for
18.23prevailing wage enforcement of which
18.24$60,000 in the first year is for outreach and
18.25survey participation improvements.
18.26$800,000 the first year and $1,200,000 the
18.27second year from the general fund are for the
18.28independent contractor certification under
18.29Minnesota Statutes, section 181.723.
18.30
Subd. 5.General Support
6,043,000
6,006,000
18.31This appropriation is from the workers'
18.32compensation fund.

18.33
18.34
Sec. 5. BUREAU OF MEDIATION
SERVICES
19.1
Subdivision 1.Total Appropriation
$
1,850,000
$
1,877,000
19.2The amounts that may be spent for each
19.3purpose are specified in the following
19.4subdivisions.
19.5
Subd. 2.Mediation Services
1,700,000
1,727,000
19.6
19.7
Subd. 3.Labor Management Cooperation
Grants
150,000
150,000
19.8$150,000 each year is for grants to area labor
19.9management committees. Grants may be
19.10awarded for a 12-month period beginning
19.11July 1 each year. Any unencumbered balance
19.12remaining at the end of the first year does not
19.13cancel but is available for the second year.

19.14
19.15
Sec. 6. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,663,000
$
1,710,000
19.16This appropriation is from the workers'
19.17compensation fund.

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

19.19
19.20
19.21
19.22
Sec. 8. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
795,000
$
805,000

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

19.24
19.25
Sec. 10. MINNESOTA BOXING
COMMISSION
$
50,000
$
-0-
19.26To transition the commission to being a
19.27self-funded entity.

19.28    Sec. 11. BIOSCIENCE ZONES DESIGNATION.
19.29    The commissioner of employment and economic development must establish a
19.30criteria for expanding the zones. The criteria must limit designating a new zone to a
19.31community that has adequate resources and infrastructure to support bioindustry, including
20.1postsecondary institutions, strong health care systems, and existing bioscience companies.
20.2It must also require that a new zone be located on a transportation corridor.

20.3    Sec. 12. NANOTECHNOLOGY DEVELOPMENT FUND PROGRAM.
20.4    Subdivision 1. Program established; purpose. The nanotechnology
20.5development fund program (NDF) is established to develop a collaborative economic
20.6development initiative between the state of Minnesota, the private sector, and multiple
20.7academic institutions to promote by small businesses an increased use of advanced
20.8nanoinstrumentation for characterization, fabrication, and other related processes;
20.9provide research consulting by knowledgeable specialists; and provide student internship
20.10opportunities to increase nanotechnology experience by working with small, medium, or
20.11large Minnesota companies. The NDF program shall be administered by the Department
20.12of Employment and Economic Development and is not a state agency.
20.13    Subd. 2. Definition; qualifying Minnesota small business. "Qualifying Minnesota
20.14small business" means:
20.15    (1) a Minnesota small business corporation, sole proprietorship, or partnership that
20.16has fewer than 50 employees; or
20.17    (2) a Minnesota business corporation, sole proprietorship, or partnership that:
20.18    (i) has 51 to 100 employees; and
20.19    (ii) demonstrates current financial adversity or risk or a major prospect of aiding
20.20the business's long-term outlook by significant use of nanotechnology in the business's
20.21offerings.
20.22    Subd. 3. Fund; grants. The commissioner shall extend onetime matching grants
20.23from the NDF to qualifying Minnesota small businesses located throughout the state to:
20.24    (1) add nanotechnology applications to products that are being developed by
20.25Minnesota small businesses to enhance distinctiveness;
20.26    (2) promote the depth, breadth, and value of technologies being developed by
20.27Minnesota businesses with the aid of nanotechnology;
20.28    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product
20.29time-to-market, with higher incidence of distinct product characteristics;
20.30    (4) provide Minnesota small businesses with broader access to experienced research
20.31consultants; and
20.32    (5) increase the number of researchers experienced in working with
20.33nanoinstrumentation.
20.34    Subd. 4. Grant application and award procedure. (a) The commissioner may
20.35give priority to applicants:
21.1    (1) whose intellectual property would benefit from utilization of nanoinstrumentation
21.2not possessed in-house;
21.3    (2) who are currently utilizing nanoinstrumentation either at the University of
21.4Minnesota or a private sector location on a leased, hourly basis; and
21.5    (3) who wish to increase their access to experienced research consultants.
21.6    (b) The commissioner shall decide whether to award a grant to an eligible applicant
21.7based on:
21.8    (1) the applicant's planned frequency of usage of nanoinstrumentation for
21.9characterization, fabrication, and other related processes; and
21.10    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form
21.11of a signed affidavit from a certified facility to confirm the one-to-one private sector
21.12investment has been met.
21.13    (c) A grant made under this section must:
21.14    (1) include verification of matching rental fees or internship stipends paid by the
21.15grantee; and
21.16    (2) be for a total amount paid to each grantee of not less than $500 nor more than
21.17$20,000 within the biennium.
21.18    Subd. 5. Administration. The commissioner of employment and economic
21.19development must develop and maintain a record-keeping system that specifies how
21.20funds from the NDF are applied for and distributed. Businesses receiving grants
21.21from the NDF must provide contact information, the date and time of the use of the
21.22nanoinstrumentation, proof of their matching contribution to meet the rental costs or
21.23provide an internship's stipend, and a general statement of the expected outcome from
21.24the use of the nanoinstrumentation, to the extent documentation can be made without
21.25divulging proprietary information.
21.26    Subd. 6. Gifts and donations. Gifts and donations, including land or interests
21.27in land, may be made to NDF. Noncash gifts and donations must be disposed of for
21.28cash as soon as the commissioner of employment and economic development can
21.29prudently maximize the value of the gift or donation. All funds must be credited to the
21.30nanotechnology development fund. All interest earned by the fund must be credited to
21.31the NDF.
21.32    Subd. 7. Report to legislature. By June 30 of each odd-numbered year, the
21.33commissioner of employment and economic development must submit a report to the
21.34legislature with statistics about the use of the NDF.

21.35    Sec. 13. WORK GROUP.
22.1    The commissioner of employment and economic development shall convene a work
22.2group to evaluate the impact of the money appropriated for wage incentives and how the
22.3wage incentive program works. The work group is to make recommendations to the
22.4legislature by January 15, 2008.

22.5ARTICLE 3
22.6EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS

22.7    Section 1. Minnesota Statutes 2006, section 116J.401, is amended by adding a
22.8subdivision to read:
22.9    Subd. 4. Use of funds for unemployed worker assistance. Payment of employee
22.10compensation costs from the Wagner-Peyser Act referenced in subdivision 1, clause
22.11(8), must be used to provide direct benefit to unemployed and underemployed workers
22.12through the state's workforce centers. At least 75 percent of the employee compensation
22.13paid from Wagner-Peyser funds must be used for employees at workforce centers who
22.14provide direct assistance to unemployed and underemployed workers and no more than
22.1525 percent may be used for providing hiring and human resource services for employers.
22.16The funds under this section may be used to establish an internet based labor exchange
22.17system. By July 1 of each year, the commissioner must submit a report to the committees
22.18of the legislature responsible for oversight of unemployment insurance with details on
22.19the use of Wagner-Peyser funds, including the number of employee positions funded, the
22.20location of the employees, and the use of funds for internet labor exchange system and
22.21other business assistance.

22.22    Sec. 2. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT
22.23INVESTMENT FUND.
22.24    Subdivision 1. Eligible organization. For the purposes of this section, "eligible
22.25organization" means an organization established pursuant to section 116J.415 which
22.26provides business financing to greater Minnesota businesses.
22.27    Subd. 2. Investment fund establishment. The commissioner shall establish an
22.28investment fund from which fund investments can be made in eligible organizations. The
22.29funds repaid by the eligible organizations are to be returned to the fund for subsequent
22.30reinvestment in eligible organizations.
22.31    Subd. 3. Authorized investments. The commissioner is authorized to make
22.32investments in eligible organizations. The commissioner shall invest funds in the form of
22.33loans to eligible organizations for the purpose of providing capital to new and expanding
22.34businesses in the form of debt or equity, or both.
23.1    Subd. 4. Investment authorized. The commissioner may make investments in
23.2eligible organizations under the following terms:
23.3    (1) the organization seeking an investment of funds must guarantee repayment of not
23.4less than 100 percent of the funds invested in the eligible organization;
23.5    (2) the investments are to be made in the form of a loan to the eligible organization
23.6for a term of ten years, at an interest rate of one percent;
23.7    (3) during the ten-year term of the loan, the eligible organization shall make annual
23.8interest-only payments;
23.9    (4) at the end of the ten-year term, the eligible organization is required to make a
23.10payment in the entire principal amount of the initial loan;
23.11    (5) the state investment by the commissioner in any eligible organization may not
23.12exceed $2,000,000;
23.13    (6) the full amount of state investment will be advanced to the approved eligible
23.14organization upon execution of a formal investment agreement, specifying the terms of the
23.15loan, as well as reporting and other requirements outlined in subdivision 5;
23.16    (7) the eligible organization must maintain the funds in accounts that allow the funds
23.17to be readily available for business investments;
23.18    (8) the eligible organization must make business investments totaling the entire
23.19amount of funds loaned by the state within three years of the execution of the investment
23.20agreement and subsequent transmittal of the funds; and
23.21    (9) an eligible organization that receives an investment under this section shall
23.22report annually, in a format prescribed by the commissioner, the nature and amount of
23.23the business investments made, including, for each financing transaction involving funds
23.24received pursuant to this section, all forms and amounts of financing provided by the
23.25eligible organization from sources other than the investment fund established pursuant to
23.26this section, along with the number of jobs created and private sector investment leveraged.
23.27    Subd. 5. Requirements for state investments. All investments are subject to an
23.28investment agreement which must include:
23.29    (1) a description of the eligible organization, including business finance experience,
23.30qualifications, and investment history;
23.31    (2) a description of the uses of investment proceeds by the eligible organization;
23.32    (3) an explanation of the investment objectives;
23.33    (4) a description of accounting and reporting standards to be used by the eligible
23.34organization; and
23.35    (5) a copy of the most recent audited financial statements of the eligible organization.

24.1    Sec. 3. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:
24.2    Subdivision 1. Grant account. A contaminated site cleanup and development
24.3grant account is created in the general fund. Money in the account may be used, as
24.4appropriated by law, to make grants as provided in section 116J.554 and to pay for the
24.5commissioner's costs in reviewing applications and making grants. Notwithstanding
24.6section 16A.28, money appropriated to the account for this program from any source is
24.7available for four years until spent.

24.8    Sec. 4. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:
24.9    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the
24.10following criteria are met:
24.11    (1) the site is not scheduled for funding during the current or next fiscal year under
24.12the Comprehensive Environmental Response, Compensation, and Liability Act, United
24.13States Code, title 42, section 9601, et seq. or under the Environmental Response, and
24.14Liability Act under sections 115B.01 to 115B.20;
24.15    (2) the appraised value of the site after adjusting for the effect on the value of the
24.16presence or possible presence of contaminants using accepted appraisal methodology, or
24.17the current market value of the site as issued under section 273.121, separately taking into
24.18account the effect of the contaminants on the market value, (i) is less than 75 percent of
24.19the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup
24.20costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and
24.21    (3) (2) if the proposed cleanup is completed, it is expected that the site will be
24.22improved with buildings or other improvements and these improvements will provide a
24.23substantial increase in the property tax base within a reasonable period of time or the site
24.24will be used for an important publicly owned or tax-exempt facility.

24.25    Sec. 5. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:
24.26    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
24.27will exceed the available appropriations and the agency will be able to provide grants to
24.28only some of the applicant development authorities.
24.29    (b) If applications for grants for qualified sites exceed the available appropriations,
24.30the agency shall make grants for sites that, in the commissioner's judgment, provide
24.31the highest return in public benefits for the public costs incurred and that meet all the
24.32requirements provided by law. In making this judgment, the commissioner shall consider
24.33the following factors:
25.1    (1) the recommendations or ranking of projects by the commissioner of the Pollution
25.2Control Agency regarding the potential threat to public health and the environment that
25.3would be reduced or eliminated by completion of each of the response action plans;
25.4    (2) the potential increase in the property tax base of the local taxing jurisdictions,
25.5considered relative to the fiscal needs of the jurisdictions, that will result from
25.6developments that will occur because of completion of each of the response action plans;
25.7    (3) the social value to the community of the cleanup and redevelopment of the site,
25.8including the importance of development of the proposed public facilities on each of
25.9the sites;
25.10    (4) the probability that each site will be cleaned up without use of government
25.11money in the reasonably foreseeable future by considering but not limited to the current
25.12market value of the site versus the cleanup cost;
25.13    (5) the amount of cleanup costs for each site; and
25.14    (6) the amount of the commitment of municipal or other local resources to pay for
25.15the cleanup costs.
25.16    The factors are not listed in a rank order of priority; rather the commissioner may
25.17weigh each factor, depending upon the facts and circumstances, as the commissioner
25.18considers appropriate. The commissioner may consider other factors that affect the net
25.19return of public benefits for completion of the response action plan. The commissioner,
25.20notwithstanding the listing of priorities and the goal of maximizing the return of public
25.21benefits, shall make grants that distribute available money to sites both within and outside
25.22of the metropolitan area. The commissioner shall provide a written statement of the
25.23supporting reasons for each grant. Unless sufficient applications are not received for
25.24qualifying sites outside of the metropolitan area, at least 25 percent of the money provided
25.25as grants must be made for sites located outside of the metropolitan area.

25.26    Sec. 6. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:
25.27    Subdivision 1. Commissioner discretion. The commissioner may make a grant for
25.28up to 50 percent of the eligible costs of a project. The determination of whether to make a
25.29grant for a site is within the discretion of the commissioner, subject to this section and
25.30sections 116J.571 to 116J.574 and available unencumbered money in the redevelopment
25.31account. For grants made in fiscal years 2008 and 2009, at least 75 percent of the available
25.32grant funds must be used for grants in greater Minnesota. For grants made in fiscal year
25.332010 and later, at least 50 percent of the available grant funds must be used for grants
25.34in greater Minnesota. If the commissioner determines that the applications for grants
25.35for projects in greater Minnesota are less than the amount of grant funds available, the
26.1commissioner may make grants for projects anywhere in Minnesota. The commissioner's
26.2decisions and application of the priorities under this section are not subject to judicial
26.3review, except for abuse of discretion.

26.4    Sec. 7. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:
26.5    Subd. 1a. Priorities. (a) If applications for grants exceed the available
26.6appropriations, grants shall be made for sites that, in the commissioner's judgment, provide
26.7the highest return in public benefits for the public costs incurred. "Public benefits" include
26.8job creation, bioscience development, environmental benefits to the state and region,
26.9efficient use of public transportation, efficient use of existing infrastructure, provision of
26.10affordable housing, multiuse development that constitutes community rebuilding rather
26.11than single-use development, crime reduction, blight reduction, community stabilization,
26.12and property tax base maintenance or improvement. In making this judgment, the
26.13commissioner shall give priority to redevelopment projects with one or more of the
26.14following characteristics:
26.15    (1) the need for redevelopment in conjunction with contamination remediation needs;
26.16    (2) the redevelopment project meets current tax increment financing requirements
26.17for a redevelopment district and tax increments will contribute to the project;
26.18    (3) the redevelopment potential within the municipality;
26.19    (4) proximity to public transit if located in the metropolitan area; and
26.20    (5) redevelopment costs related to expansion of a bioscience business in Minnesota;
26.21and
26.22    (5) (6) multijurisdictional projects that take into account the need for affordable
26.23housing, transportation, and environmental impact.
26.24    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
26.25commissioner may weigh each factor, depending upon the facts and circumstances, as
26.26the commissioner considers appropriate. The commissioner may consider other factors
26.27that affect the net return of public benefits for completion of the redevelopment plan. The
26.28commissioner, notwithstanding the listing of priorities and the goal of maximizing the
26.29return of public benefits, shall make grants that distribute available money to sites both
26.30within and outside of the metropolitan area. Unless sufficient applications are not received
26.31for qualifying sites outside of the metropolitan area, at least 25 percent of the money
26.32provided as grants must be made for sites located outside of the metropolitan area.

26.33    Sec. 8. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:
27.1    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and
27.2facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in
27.3addition to the powers granted by section 116J.035, the commissioner may:
27.4    (1) locate, develop, and promote international markets for Minnesota products
27.5and services;
27.6    (2) arrange and lead trade missions to countries with promising international markets
27.7for Minnesota goods, technology, services, and agricultural products;
27.8    (3) promote Minnesota products and services at domestic and international trade
27.9shows;
27.10    (4) organize, promote, and present domestic and international trade shows featuring
27.11Minnesota products and services;
27.12    (5) host trade delegations and assist foreign traders in contacting appropriate
27.13Minnesota businesses and investments;
27.14    (6) develop contacts with Minnesota businesses and gather and provide information
27.15to assist them in locating and communicating with international trading or joint venture
27.16counterparts;
27.17    (7) provide information, education, and counseling services to Minnesota businesses
27.18regarding the economic, commercial, legal, and cultural contexts of international trade;
27.19    (8) provide Minnesota businesses with international trade leads and information
27.20about the availability and sources of services relating to international trade, such as
27.21export financing, licensing, freight forwarding, international advertising, translation, and
27.22custom brokering;
27.23    (9) locate, attract, and promote foreign direct investment and business development
27.24in Minnesota to enhance employment opportunities in Minnesota;
27.25    (10) provide foreign businesses and investors desiring to locate facilities in
27.26Minnesota information regarding sources of governmental, legal, real estate, financial, and
27.27business services;
27.28    (11) enter into contracts or other agreements with private persons and public entities,
27.29including agreements to establish and maintain offices and other types of representation in
27.30foreign countries, to carry out the purposes of promoting international trade and attracting
27.31investment from foreign countries to Minnesota and to carry out this section, without
27.32regard to section 16C.06; and
27.33    (12) market trade-related materials to businesses and organizations, and the proceeds
27.34of which must be placed in a special revolving account and are appropriated to the
27.35commissioner to prepare and distribute trade-related materials.
28.1    (b) The programs and activities of the commissioner of employment and economic
28.2development and the Minnesota Trade Division may not duplicate programs and activities
28.3of the commissioner of agriculture.
28.4    (c) The commissioner shall notify the chairs of the senate Finance and house Ways
28.5and Means Committees of each agreement under this subdivision to establish and maintain
28.6an office or other type of representation in a foreign country.
28.7    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing
28.8assistance to official visits by foreign government representatives and shall serve as liaison
28.9to the foreign diplomatic corps in Minnesota.

28.10    Sec. 9. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision
28.11to read:
28.12    Subd. 4. Workforce development intermediaries. "Workforce development
28.13intermediaries" means public, private, or nonprofit entities that provide employment
28.14services to low-income individuals and have a demonstrated track record bringing together
28.15employers and workers, private and public funding streams, and other stakeholders to
28.16implement pathways to career advancement for low-income individuals. Entities may
28.17include, but are not limited to, nonprofit organizations, educational institutions, or the
28.18administrative entity of a local workforce service area.

28.19    Sec. 10. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:
28.20    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid
28.21for developing programs which assist in the transition of persons from welfare to work and
28.22assist individuals at or below 200 percent of the federal poverty guidelines. The program
28.23is to be operated by the board. The board shall consult and coordinate with program
28.24administrators at the Department of Employment and Economic Development to design
28.25and provide services for temporary assistance for needy families recipients.
28.26    Pathways grants-in-aid may be awarded to educational or other nonprofit training
28.27institutions or to workforce development intermediaries for education and training
28.28programs and services supporting education and training programs that serve eligible
28.29recipients.
28.30    Preference shall be given to projects that:
28.31    (1) provide employment with benefits paid to employees;
28.32    (2) provide employment where there are defined career paths for trainees;
28.33    (3) pilot the development of an educational pathway that can be used on a continuing
28.34basis for transitioning persons from welfare to work; and
29.1    (4) demonstrate the active participation of Department of Employment and
29.2Economic Development workforce centers, Minnesota State College and University
29.3institutions and other educational institutions, and local welfare agencies.
29.4    Pathways projects must demonstrate the active involvement and financial
29.5commitment of private business. Pathways projects must be matched with cash or in-kind
29.6contributions on at least a one-to-one one-half-to-one ratio by participating private
29.7business.
29.8    A single grant to any one institution shall not exceed $400,000. A portion of a grant
29.9may be used for preemployment training.

29.10    Sec. 11. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:
29.11    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
29.12have the meanings given them in this subdivision.
29.13    (b) "Commissioner" means the commissioner of employment and economic
29.14development.
29.15    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the
29.16time employment ceased or was working in the state at the time employment ceased and:
29.17    (1) has been permanently separated or has received a notice of permanent separation
29.18from public or private sector employment and is eligible for or has exhausted entitlement
29.19to unemployment benefits, and is unlikely to return to the previous industry or occupation;
29.20    (2) has been long-term unemployed and has limited opportunities for employment
29.21or reemployment in the same or a similar occupation in the area in which the individual
29.22resides, including older individuals who may have substantial barriers to employment by
29.23reason of age;
29.24    (3) has been terminated or has received a notice of termination of employment as a
29.25result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
29.26    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
29.27result of general economic conditions in the community in which the individual resides or
29.28because of natural disasters; or
29.29    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who
29.30has spent a substantial number of years in the home providing homemaking service and
29.31(i) has been dependent upon the financial support of another; and now due to divorce,
29.32separation, death, or disability of that person, must find employment to self support; or (ii)
29.33derived the substantial share of support from public assistance on account of dependents
29.34in the home and no longer receives such support.
30.1    To be eligible under this clause, the support must have ceased while the worker
30.2resided in Minnesota.
30.3    (d) "Eligible organization" means a state or local government unit, nonprofit
30.4organization, community action agency, business organization or association, or labor
30.5organization.
30.6    (e) "Plant closing" means the announced or actual permanent shutdown of a single
30.7site of employment, or one or more facilities or operating units within a single site of
30.8employment.
30.9    (f) "Substantial layoff" means a permanent reduction in the workforce, which is
30.10not a result of a plant closing, and which results in an employment loss at a single site
30.11of employment during any 30-day period for at least 50 employees excluding those
30.12employees that work less than 20 hours per week.

30.13    Sec. 12. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:
30.14    Subdivision 1. Determination and collection of special assessment. (a) In addition
30.15to amounts due from an employer under the Minnesota unemployment insurance program,
30.16each employer, except an employer making reimbursements is liable for a special
30.17assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on
30.18all taxable wages, as defined in section 268.035, subdivision 24. Beginning January 1,
30.192008, the special assessment shall be levied at a rate of .085 percent per year on all taxable
30.20wages. The assessment shall become due and be paid by each employer on the same
30.21schedule and in the same manner as other amounts due from an employer under section
30.22268.051, subdivision 1 .
30.23    (b) The special assessment levied under this section shall be subject to the same
30.24requirements and collection procedures as any amounts due from an employer under the
30.25Minnesota unemployment insurance program.

30.26    Sec. 13. Minnesota Statutes 2006, section 116L.666, subdivision 1, is amended to read:
30.27    Subdivision 1. Designation of workforce service areas. For the purpose of
30.28administering federal, state, and local employment and training services, the commissioner
30.29shall designate the geographic boundaries for workforce service areas in Minnesota.
30.30    The commissioner shall approve a request to be a workforce service area from:
30.31    (1) a home rule charter or statutory city with a population of 200,000 or more or a
30.32county with a population of 200,000 or more; or
31.1    (2) a consortium of contiguous home rule charter or statutory cities or counties
31.2with an aggregate population of 200,000 or more that serves a substantial part of one or
31.3more labor markets.
31.4    The commissioner may approve a request to be a workforce service area from a
31.5home rule charter or statutory city or a county or a consortium of contiguous home
31.6rule charter or statutory cities or counties, without regard to population, that serves a
31.7substantial portion of a labor market area.
31.8    The commissioner shall make a final designation of workforce service areas within
31.9the state after consulting with local elected officials and the governor's Workforce
31.10Development Council. Existing service delivery areas designated under the federal Job
31.11Training Partnership Act shall be initially designated as workforce service areas providing
31.12that no other petitions are submitted by local elected officials.
31.13    The commissioner may redesignate workforce service areas, upon the advice and
31.14consent of the affected local elected officials, no more frequently than every two years.
31.15These redesignations must be made not later than four months before the beginning of a
31.16program year.

31.17    Sec. 14. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:
31.18    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
31.19corporation with which it has entered into an agreement under subdivision 1. These
31.20loans must be used to support a new or expanding business. This support may include
31.21such forms of financing as the sale of goods to the business on installment or deferred
31.22payments, lease purchase agreements, or royalty investments in the business. The interest
31.23rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
31.24the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
31.25nonprofit corporation may charge a loan origination fee equal to or less than one percent
31.26of the loan value. The nonprofit corporation may retain the amount of the origination fee.
31.27The nonprofit corporation must provide at least an equal match to the loan received by the
31.28board. The maximum loan available to the nonprofit corporation under this subdivision is
31.29$50,000. Loans made to the nonprofit corporation under this subdivision may be made
31.30without interest. Repayments made by the nonprofit corporation must be deposited in the
31.31revolving fund created for urban initiative grants.

31.32    Sec. 15. [116O.115] SMALL BUSINESS GROWTH ACCELERATION
31.33PROGRAM.
32.1    Subdivision 1. Establishment; purpose. The small business growth acceleration
32.2program is established. The purpose of the program is to (1) help qualified companies
32.3implement technology and business improvements; and (2) bridge the gap between
32.4standard market pricing for technology and business improvements and what qualified
32.5companies can afford to pay.
32.6    Subd. 2. Qualified company. A company is qualified to receive assistance under
32.7the small business growth acceleration program if it is a manufacturing company or a
32.8manufacturing-related service company that employs 100 or fewer full-time equivalent
32.9employees.
32.10    Subd. 3. Applications for assistance. A company seeking assistance under the
32.11small business growth acceleration program must file an application according to the
32.12requirements of the corporation. A company's application for small business growth
32.13acceleration program assistance must include documentation of the company's overall plan
32.14for technology and business improvement and prioritize the components of the overall
32.15plan. The application must also document the company's need for small business growth
32.16acceleration program funds in order to carry forward the highest priority components of
32.17the plan.
32.18    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish
32.19procedures for determining which applicants for assistance under the small business
32.20growth acceleration program will receive program funding. Funding shall be awarded
32.21only to accelerate a qualified company's adoption of needed technology or business
32.22improvements when the corporation concludes that it is unlikely the improvements could
32.23be accomplished in any other way.
32.24    (b) The maximum amount of funds awarded to a qualified company under the small
32.25business growth acceleration program for a particular project must not exceed 50 percent
32.26of the total cost of a project and must not under any circumstances exceed $25,000 during
32.27a calendar year. The corporation shall not award to a qualified company small business
32.28growth acceleration program funds in excess of $50,000 per year.
32.29    (c) Any funds awarded to a qualified company under the small business growth
32.30acceleration program must be used for business services and products that will enhance the
32.31operation of the company. These business services and products must come either directly
32.32from the corporation or from a network of expert providers identified and approved by
32.33the corporation. No company receiving small business growth acceleration program
32.34funds may use the funds for refinancing, overhead costs, new construction, renovation,
32.35equipment, or computer hardware.
33.1    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
33.2documented according to requirements of the corporation.
33.3    Subd. 5. Service agreements. The corporation shall enter a written service
33.4agreement with each company awarded funds under the small business growth acceleration
33.5program. Each service agreement shall clearly articulate the company's need for service,
33.6state the cost of the service, identify who will provide the service, and define the scope of
33.7the service that will be provided. The service agreement must also include an estimate
33.8of the financial impact of the service on the company and require the company to report
33.9the actual financial impact of the service to the corporation 24 months after the service is
33.10provided.
33.11    Subd. 6. Reporting. The corporation shall report annually to the legislative
33.12committees with fiscal jurisdiction over the Department of Employment and Economic
33.13Development:
33.14    (1) the funds awarded under the small business growth acceleration program during
33.15the past 12 months;
33.16    (2) the estimated financial impact of the funds awarded to each company receiving
33.17service under the program; and
33.18    (3) the actual financial impact of funds awarded during the past 24 months.

33.19    Sec. 16. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.
33.20    Subdivision 1. Definitions. For the purposes of this section and section 179.87:
33.21    (1) "employer" means any person or business entity having 25 or more employees
33.22in the meatpacking industry; and
33.23    (2) "meatpacking industry" means business operations in which slaughtering,
33.24butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry
33.25packing, poultry manufacturing, pet food manufacturing, processing of meatpacking
33.26products, or rendering is carried on. Meatpacking products include livestock and poultry
33.27products.
33.28    Subd. 2. Right to adequate facilities. An employer must provide its employees:
33.29    (1) adequate and working restroom facilities;
33.30    (2) adequate room for meal and rest breaks;
33.31    (3) adequate locker facilities; and
33.32    (4) adequate time for necessary restroom and meal breaks as required under chapter
33.33177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter
33.34126, or a valid collective bargaining agreement.
34.1    Subd. 3. Right to adequate equipment and training. An employer must furnish its
34.2employees with equipment and training that is adequate to perform the job task assigned.
34.3An employer must make ongoing skill development and training opportunities, including
34.4supervisory training, available to employees.
34.5    Subd. 4. Information provided to employee by employer. (a) An employer must
34.6provide an explanation in an employee's native language of the employee's rights and
34.7duties as an employee either person-to-person or through written materials as required
34.8by state or federal law, or a valid collective bargaining agreement that, at a minimum,
34.9includes:
34.10    (1) a complete description of the salary and benefits plans as they relate to the
34.11employee as required under chapter 181;
34.12    (2) a job description for the employee's position as required under chapter 181;
34.13    (3) a description of leave policies as required under chapter 181 and United States
34.14Code, title 29, chapter 28;
34.15    (4) a description of the work hours and work hours policy as required under chapter
34.16181; United States Code, title 29, chapter 201; or a valid collective bargaining agreement;
34.17and
34.18    (5) a description of the occupational hazards known to exist for the position as
34.19required under chapters 181 and 182 and United States Code, title 29, chapter 15.
34.20    (b) The explanation must also include information on the following employee rights
34.21as protected by state or federal law and a description of where additional information
34.22about those rights may be obtained:
34.23    (1) the right to organize and bargain collectively as required under this chapter and
34.24chapter 177, and United States Code, title 29, chapter 7;
34.25    (2) the right to a safe workplace as required under chapters 181 and 182 and United
34.26States Code, title 29, chapter 15; and
34.27    (3) the right to be free from discrimination as required under this chapter and
34.28chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.
34.29    Subd. 5. Civil action. A person aggrieved as a result of a violation of this section
34.30may file suit in any district court of this state. If the court finds that the respondent has
34.31intentionally violated this section, the court may award damages up to and including an
34.32amount equal to the original damages and may provide injunctive relief.
34.33    Subd. 6. Criminal penalty. An employer who violates this section is guilty of a
34.34misdemeanor.

35.1    Sec. 17. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS
35.2OMBUDSMAN.
35.3    Subdivision 1. Position established. The position of meatpacking industry workers
35.4rights ombudsman is established within the Department of Labor and Industry. The
35.5ombudsman shall be an employee of the department. The ombudsman shall be appointed
35.6by the commissioner in consultation with the chairs of the standing committees of the
35.7senate and house of representatives with jurisdiction over labor and employment issues in
35.8accordance with the preference established in subdivision 5.
35.9    Subd. 2. Duties. The ombudsman shall inspect and review the practices and
35.10procedures of meatpacking operations in the state. The ombudsman shall work to ensure
35.11workers rights under section 179.86 are protected.
35.12    Subd. 3. Access. The ombudsman or designated representatives of the ombudsman
35.13shall have access to all meatpacking operations in the state at any time meatpacking
35.14products are being processed and industry workers are on the job.
35.15    Subd. 4. Office. Necessary office space, furniture, equipment, and supplies as
35.16well as necessary assistance for the ombudsman shall be provided by the Department of
35.17Labor and Industry.
35.18    Subd. 5. Language preference. Preference shall be given to applicants for the
35.19ombudsman position who are fluent in languages in addition to English.
35.20    Subd. 6. Report. The ombudsman shall, on or before December 1 of each year,
35.21submit a report to the members of the legislature and the governor regarding any
35.22recommended actions the ombudsman deems necessary or appropriate to provide for the
35.23fair treatment of workers in the meatpacking industry.

35.24    Sec. 18. Minnesota Statutes 2006, section 181.78, is amended by adding a subdivision
35.25to read:
35.26    Subd. 4. Forfeiture of employer rights. (a) This subdivision applies to an
35.27invention or proposal by an employee in which the employer has an enforceable interest
35.28by contract or otherwise.
35.29    (b) An employer who has a right to develop or utilize an invention or proposal
35.30must make a substantial investment in the invention or proposal within five years of the
35.31submission of the invention or proposal or forfeit all rights and interests in the invention
35.32or proposal to the employee.
35.33    (c) An employee who has acquired the rights and interests of an employer under
35.34paragraph (b) may transfer that interest in the invention or proposal to anyone.
36.1    (d) An employer must notify in writing an employee who submits an invention or
36.2proposal to the employer of the employee's right under this subdivision within ten days of
36.3the submission. The employer must date and describe the proposal or invention received
36.4by the employer and provide a copy to the employee.

36.5    Sec. 19. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE
36.6PRESENCE OF LIQUOR.
36.7    No minor under the age of 18 shall be employed in any rooms constituting the place
36.8in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any
36.9tasks involving the serving, dispensing, or handling of such liquors that are consumed on
36.10the premises except that:
36.11    (1) minors who have reached the age of 16 may be employed to perform busing or
36.12dishwashing services in those rooms or areas of a restaurant, hotel, motel, or resort where
36.13the presence of intoxicating liquor is incidental to food service or preparation;
36.14    (2) minors who have reached the age of 16 may be employed to perform busing or
36.15dishwashing services or to provide waiter or waitress service in rooms or areas where the
36.16presence of 3.2 percent malt liquor is incidental to food service or preparation;
36.17    (3) minors who have reached the age of 16 may be employed to provide musical
36.18entertainment in those rooms or areas where the presence of intoxicating liquor and 3.2
36.19percent malt liquor is incidental to food service or preparation; and
36.20    (4) minors are not prevented from working at tasks which are not prohibited by law
36.21in establishments where liquor is sold, served, dispensed, or handled in those rooms or
36.22areas where no liquor is consumed or served.

36.23    Sec. 20. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:
36.24    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on
36.25employers and employees of this state resulting from personal injuries and illnesses arising
36.26out of work situations is substantial; that the prevention of these injuries and illnesses is an
36.27important objective of the government of this state; that the greatest hope of attaining this
36.28objective lies in programs of research and education, and in the earnest cooperation of
36.29government, employers and employees; and that a program of regulation and enforcement
36.30is a necessary supplement to these more basic programs.
36.31    The legislature declares it to be its purpose and policy through the exercise of its
36.32powers to assure so far as possible every worker in the state of Minnesota safe and
36.33healthful working conditions and to preserve our human resources by:
37.1    (a) authorizing the Occupational Safety and Health Advisory Council to advise,
37.2consult with or recommend on any matters relating to the Minnesota occupational
37.3safety and health plan to the commissioner of labor and industry and by authorizing the
37.4commissioner of labor and industry to promulgate and enforce mandatory occupational
37.5safety and health standards applicable to employers and employees in the state of
37.6Minnesota;
37.7    (b) encouraging employers and employees to increase their efforts to reduce the
37.8number of occupational safety and health hazards at their places of employment, and to
37.9stimulate employers and employees to institute new and to perfect existing programs for
37.10providing safe and healthful working conditions;
37.11    (c) providing that employers and employees have separate but dependent
37.12responsibilities and rights with respect to achieving safe and healthful working conditions;
37.13    (d) providing for research in the field of occupational safety and health; including
37.14the psychological factors involved, and by developing innovative methods, techniques,
37.15and approaches for dealing with occupational safety and health problems;
37.16    (e) exploring ways to discover latent diseases, establishing causal connections
37.17between diseases and work in environmental conditions, and conducting other research
37.18relating to health problems, in recognition of the fact that occupational health standards
37.19present problems often different from those involved in occupational safety;
37.20    (f) utilizing advances already made by federal laws and regulations providing safe
37.21and healthful working conditions;
37.22    (g) providing criteria which will assure insofar as practicable that no employee
37.23will suffer diminished health, functional capacity, or life expectancy as a result of work
37.24experience;
37.25    (h) providing an effective enforcement program which shall include locating
37.26enforcement personnel in areas of the state with a higher incidence of workplace fatalities,
37.27injuries, and complaints and a prohibition against giving advance notice of an inspection
37.28and sanctions for any individual violating this prohibition;
37.29    (i) providing for appropriate reporting procedures with respect to occupational
37.30safety and health, which procedures will help achieve the objectives of this chapter and
37.31accurately describe the nature of the occupational safety and health problem;
37.32    (j) encouraging joint labor-management efforts to reduce injuries and diseases
37.33arising out of employment;
37.34    (k) providing consultation to employees and employers which will aid them in
37.35complying with their responsibilities under this chapter where such consultation does not
37.36interfere with the effective enforcement of this chapter; and
38.1    (l) providing for training programs to increase the number and competence of
38.2personnel engaged in the field of occupational safety and health.

38.3    Sec. 21. [182.6551] CITATION.
38.4    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."

38.5    Sec. 22. [182.6552] DEFINITIONS.
38.6    Subdivision 1. Direct patient care worker. "Direct patient care worker" means an
38.7individual doing the job of directly providing physical care to patients including nurses, as
38.8defined by section 148.171, who provide physical care to patients.
38.9    Subd. 2. Health care facility. "Health care facility" means a hospital as defined in
38.10section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55,
38.11subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.
38.12    Subd. 3. Safe patient handling. "Safe patient handling" means a process, based on
38.13scientific evidence on causes of injuries, that uses safe patient handling equipment rather
38.14than people to transfer, move, and reposition patients in all health care facilities to reduce
38.15workplace injuries. This process also reduces the risk of injury to patients.
38.16    Subd. 4. Safe patient handling equipment. "Safe patient handling equipment"
38.17means engineering controls, lifting and transfer aids, or mechanical assistive devices used
38.18by nurses and other direct patient care workers instead of manual lifting to perform the
38.19acts of lifting, transferring, and repositioning health care facility patients and residents.

38.20    Sec. 23. [182.6553] SAFE PATIENT HANDLING PROGRAM.
38.21    Subdivision 1. Safe patient handling program required. (a) By July 1, 2008,
38.22every licensed health care facility in the state shall adopt a written safe patient handling
38.23policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing
38.24manual lifting of patients by nurses and other direct patient care workers by utilizing
38.25safe patient handling equipment.
38.26    (b) The program shall address:
38.27    (1) assessment of hazards with regard to patient handling;
38.28    (2) the acquisition of an adequate supply of appropriate safe patient handling
38.29equipment;
38.30    (3) initial and ongoing training of nurses and other direct patient care workers on
38.31the use of this equipment;
38.32    (4) procedures to ensure that physical plant modifications and major construction
38.33projects are consistent with program goals; and
39.1    (5) periodic evaluations of the safe patient handling program.
39.2    Subd. 2. Safe patient handling committee. (a) By July 1, 2008, every licensed
39.3health care facility in the state shall establish a safe patient handling committee either by
39.4creating a new committee or assigning the functions of a safe patient handling committee
39.5to an existing committee.
39.6    (b) Membership of a safe patient handling committee or an existing committee must
39.7meet the following requirements:
39.8    (1) at least half the members shall be nonmanagerial nurses and other direct patient
39.9care workers; and
39.10    (2) in a health care facility where nurses and other direct patient care workers
39.11are covered by a collective bargaining agreement, the union shall select the committee
39.12members proportionate to its representation of nonmanagerial workers, nurses, and other
39.13direct patient care workers.
39.14    (c) A health care organization with more than one covered health care facility may
39.15establish a committee at each facility or one committee to serve this function for all the
39.16facilities. If the organization chooses to have one overall committee for multiple facilities,
39.17at least half of the members of the overall committee must be nonmanagerial nurses and
39.18other direct patient care workers and each facility must be represented on the committee.
39.19    (d) Employees who serve on a safe patient handling committee must be compensated
39.20by their employer for all hours spent on committee business.
39.21    Subd. 3. Facilities with existing programs. A facility that has already adopted a
39.22safe patient handling policy that satisfies the requirements of subdivision 1, and established
39.23a safe patient handling committee by July 1, 2008, is considered to be in compliance
39.24with those requirements. The committee must continue to satisfy the requirements of
39.25subdivision 2, paragraph (b), on an ongoing basis.
39.26    Subd. 4. Committee duties. A safe patient handling committee shall:
39.27    (1) complete a patient handling hazard assessment that:
39.28    (i) considers patient handling tasks, types of nursing units, patient populations, and
39.29the physical environment of patient care areas;
39.30    (ii) identifies problems and solutions;
39.31    (iii) identifies areas of highest risk for lifting injuries; and
39.32    (iv) recommends a mechanism to report, track, and analyze injury trends;
39.33    (2) make recommendations on the purchase, use, and maintenance of an adequate
39.34supply of appropriate safe patient handling equipment;
40.1    (3) make recommendations on training of nurses and other direct patient care
40.2workers on use of safe patient handling equipment, initially when the equipment arrives at
40.3the facility and periodically afterwards;
40.4    (4) conduct annual evaluations of the safe patient handling implementation plan and
40.5progress toward goals established in the safe patient handling policy; and
40.6    (5) recommend procedures to ensure that, when remodeling of patient care areas
40.7occurs, the plans incorporate safe patient handling equipment or the physical space and
40.8construction design needed to accommodate safe patient handling equipment at a later date.
40.9    Subd. 5. Training materials. The commissioner shall make training materials on
40.10implementation of this section available to all health care facilities at no cost as part of the
40.11training and education duties of the commissioner under section 182.673.
40.12    Subd. 6. Enforcement. This section shall be enforced by the commissioner under
40.13section 182.661. A violation of this section is subject to the penalties provided under
40.14section 182.666.
40.15    Subd. 7. Grant program. The commissioner may make grants to health care
40.16facilities to acquire safe patient handling equipment and for training on safe patient
40.17handling and safe patient handling equipment. Grants to any one facility may not exceed
40.18$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The
40.19commissioner shall establish a grant application process. The commissioner may give
40.20priority for grants to facilities that demonstrate that acquiring safe patient handling
40.21equipment will impose a financial hardship on the facility. For health care facilities
40.22that provide evidence of hardship, the commissioner may waive the 50 percent match
40.23requirement and may grant such a facility more than $40,000. Health care facilities that
40.24the commissioner determines are experiencing hardship shall not be required to meet the
40.25safe patient handling requirements until July 1, 2012.

40.26    Sec. 24. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:
40.27    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall not
40.28be eligible to receive unemployment benefits for any week with respect to which the
40.29applicant is receiving, has received, or has filed for payment, equal to or in excess of the
40.30applicant's weekly unemployment benefit amount, in the form of:
40.31    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
40.32shall not apply to vacation pay paid upon a permanent separation from employment;
40.33    (2) severance pay, bonus pay, sick pay, and any other money payments, except
40.34earnings under subdivision 5, and back pay under subdivision 6, paid by an employer
40.35because of, upon, or after separation from employment, but only if the money payment is
41.1considered wages at the time of payment under section 268.035, subdivision 29, or United
41.2States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;.
41.3This clause does not apply to the first $10,000 of any amount of severance pay, bonus
41.4pay, sick pay, or any other payments paid to an employee with annual salary or wages
41.5under $75,000; or
41.6    (3) pension, retirement, or annuity payments from any plan contributed to by a base
41.7period employer including the United States government, except Social Security benefits
41.8which are provided for in subdivision 4. The base period employer contributed to the
41.9plan if the contribution is excluded from the definition of wages under section 268.035,
41.10subdivision 29
, clause (1), or United States Code, title 26, section 3121, clause (2), of
41.11the Federal Insurance Contribution Act.
41.12    An applicant shall not be considered to have received the lump sum payment if the
41.13applicant immediately deposits that payment in a qualified pension plan or account; or
41.14    (4) holiday pay.
41.15    (b) This subdivision shall apply to all the weeks of payment and shall be applied to
41.16the period immediately following the last day of employment. The number of weeks of
41.17payment shall be determined as follows:
41.18    (1) if the payments are made periodically, the total of the payments to be received
41.19shall be divided by the applicant's last level of regular weekly pay from the employer; or
41.20    (2) if the payment is made in a lump sum, that sum shall be divided by the applicant's
41.21last level of regular weekly pay from the employer.
41.22    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
41.23unemployment benefits shall be reduced by the amount of the payment. If the computation
41.24of reduced unemployment benefits is not a whole dollar, it shall be rounded down to the
41.25next lower whole dollar.
41.26EFFECTIVE DATE.This section is effective for unemployment benefits paid on
41.27or after January 1, 2006, regardless of when the continued request was filed or the week
41.28for which the unemployment benefits are paid.

41.29    Sec. 25. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision
41.30to read:
41.31    Subd. 5. Unemployment insurance benefits telephone system. The commissioner
41.32must ensure that the telephone system used for unemployment insurance benefits provides
41.33an option for any caller to speak to an unemployment insurance specialist. An individual
41.34who calls any of the publicized telephone numbers seeking information about applying for
41.35benefits or on the status of a claim must have the option to speak on the telephone to a
42.1specialist who can provide direct assistance or can direct the caller to the person or office
42.2that is able to respond to the caller's needs.

42.3    Sec. 26. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:
42.4    Subd. 13. Supported employment. (a) "Supported employment" means
42.5employment of a person with a disability so severe that the person needs ongoing training
42.6and support to get and keep a job in which:
42.7    (1) the person engages in paid work in a position removed from the service vendor's
42.8site where individuals without disabilities who do not require public subsidies also may
42.9be employed;
42.10    (2) public funds are necessary to provide ongoing training and support services
42.11throughout the period of the person's employment; and
42.12    (3) the person has the opportunity for social interaction with individuals who do not
42.13have disabilities and who are not paid caregivers.
42.14    (b) If the commissioner has certified a rehabilitation facility setting as integrated,
42.15then employment at that site may be considered supported employment.

42.16    Sec. 27. Minnesota Statutes 2006, section 268A.01, is amended by adding a
42.17subdivision to read:
42.18    Subd. 14. Affirmative business enterprise employment. "Affirmative business
42.19enterprise employment" means employment which provides paid work on the premises of
42.20an affirmative business enterprise as certified by the commissioner.
42.21    Affirmative business enterprise employment is considered community employment
42.22for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided
42.23that the wages for individuals reported must be at or above customary wages for the
42.24same employer. The employer must also provide one benefit package that is available to
42.25all employees.

42.26    Sec. 28. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:
42.27    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit
42.28corporation, or combination thereof establishing a rehabilitation facility shall appoint a
42.29rehabilitation facility board of no fewer than nine seven voting members before becoming
42.30eligible for the assistance provided by sections 268A.06 to 268A.15. When any city,
42.31town, or county singly establishes such a rehabilitation facility, the board shall be
42.32appointed by the chief executive officer of the city or the chair of the governing board
42.33of the county or town. When any combination of cities, towns, counties, or nonprofit
43.1corporations establishes a rehabilitation facility, the chief executive officers of the cities,
43.2nonprofit corporations, and the chairs of the governing bodies of the counties or towns
43.3shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation
43.4facility, the corporation shall appoint the board of directors. Membership on a board
43.5shall be representative of the community served and shall include a person with a
43.6disability. One-third to one-half of the board shall be representative of industry or
43.7business. The remaining members should be representative of lay associations for persons
43.8with a disability, labor, the general public, and education, welfare, medical, and health
43.9professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude
43.10the appointment of elected or appointed public officials or members of the board of
43.11directors of the sponsoring nonprofit corporation to the board, so long as the representation
43.12described above is preserved. If a county establishes an extended employment program
43.13and manages the program with county employees, the governing board shall be the county
43.14board of commissioners, and other provisions of this chapter pertaining to membership on
43.15the governing board do not apply.

43.16    Sec. 29. Minnesota Statutes 2006, section 268A.15, is amended by adding a
43.17subdivision to read:
43.18    Subd. 9. Integrated setting. At the commissioner's discretion, paid work on the
43.19premises of a rehabilitation facility may be certified as an integrated setting after a site
43.20review by the department.

43.21    Sec. 30. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision
43.22to read:
43.23    Subd. 5. Local planning assistance. A regional development commission or,
43.24in regions not served by regional development commissions, a regional organization
43.25selected by the commissioner of employment and economic development, may develop a
43.26program to support planning on behalf of local units of government. The local planning
43.27must be related to issues of regional or statewide significance and may include, but is not
43.28limited to, the following:
43.29    (1) local planning and development assistance, which may include local zoning
43.30ordinances and land use plans;
43.31    (2) community or economic development plans, which may include workforce
43.32development plans, housing development plans and market analysis, JOBZ administration,
43.33grant writing assistance, and grant administration;
44.1    (3) environment and natural resources plans, which may include solid waste
44.2management plans, wastewater management plans, and renewable energy development
44.3plans;
44.4    (4) rural community health services; and
44.5    (5) development of geographical information systems to serve regional needs,
44.6including hardware and software purchases and related labor costs.
44.7    Each regional development commission or organization shall submit to the
44.8commissioner of employment and economic development an annual work program
44.9that outlines the work items for the upcoming year and establishes the relationship of
44.10the work items to development issues of regional or statewide significance. The entity
44.11completing the annual work program and identifying the statewide development issues
44.12shall consider input from the Departments of Employment and Economic Development,
44.13Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as
44.14appropriate to the issues.

44.15    Sec. 31. WORKFORCE ENHANCEMENT FEE.
44.16    If the commissioner of employment and economic development determines that
44.17the need for services under the dislocated worker program substantially exceeds the
44.18resources that will be available for the program, the commissioner may increase the
44.19special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no
44.20more than .12 percent of taxable wages.

44.21    Sec. 32. FEDERAL PROCUREMENT LIAISON.
44.22    The commissioner of employment and economic development must establish and
44.23operate a technology and commercialization unit in the Department of Employment and
44.24Economic Development. Appropriation for this purpose must be used to: coordinate
44.25public and private efforts to procure federal funding for collaborative research and
44.26development projects of primary benefit to small- and medium-sized businesses; promote
44.27contractual relationships between Minnesota businesses who, as recipients of federal
44.28grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess
44.29the research and development capabilities of small- and medium-sized businesses;
44.30undertake referral activities to link Minnesota companies with federal requests for
44.31proposal opportunities; and develop a framework for Minnesota companies to establish
44.32sole-sourcing relationships with federal agencies.
45.1    The commissioner must report to the committees in the house of representatives and
45.2the senate having jurisdiction over bioscience and technology issues on the activities of
45.3the technology and commercialization unit by June 30 of each year.

45.4    Sec. 33. LOCATION OF NORTHERN MINNESOTA INSPECTORS.
45.5    By December 31, 2007, the commissioner of labor and industry must assign three
45.6occupational safety and health inspectors to one or more offices on the Iron Range and one
45.7inspector to an office in Bemidji.

45.8    Sec. 34. ROLE OF STATE LEGISLATURE IN TRADE POLICY.
45.9    (a) It shall be the policy of the state that approval for the state to be bound by any
45.10trade agreement requires the consent of the state legislature.
45.11    (b) Four state legislative contacts must be informed by the governor when any trade
45.12agreement arrives in the governor's office. The four contacts are the majority and minority
45.13leader of the senate or their designated legislators, and the speaker and minority leader in
45.14the house of representatives or their designated legislators. The legislature declares that
45.15the purposes of the state contacts are to:
45.16    (1) serve as the state's official legislative liaisons with the governor and the state
45.17legislature on trade-related matters;
45.18    (2) serve as the legislature's designated recipients from the governor of federal
45.19requests for consent to consultation regarding investment, procurement, services, or other
45.20provisions of international trade agreements, which impinge on state law or regulatory
45.21authority reserved to the states;
45.22    (3) transmit information regarding federal requests from the governor to all
45.23appropriate legislative committees;
45.24    (4) issue a formal request to the Department of Employment and Economic
45.25Development and all appropriate state agencies to provide analysis of all proposed trade
45.26agreements' impact on state legislative authority and the economy of the state;
45.27    (5) inform all members of the legislature on a regular basis about ongoing trade
45.28negotiations and dispute settlement proceedings with implications for the state more
45.29generally;
45.30    (6) communicate the concerns of the legislature to the governor and the United
45.31States trade representative regarding ongoing and proposed trade negotiations; and
45.32    (7) notify the governor and the United States trade representative of the outcome
45.33of any legislative action.
46.1    (c) The following actions are required before the state shall consent to the terms of
46.2a trade agreement:
46.3    (1) when a federal trade request has been received, the governor must submit the
46.4request to the legislative contacts on a day both houses are in session. The request must
46.5contain a copy of the final legal text of the agreement together with:
46.6    (i) a report by the Department of Employment and Economic Development in
46.7consultation with, at a minimum, the following agencies: Department of Administration,
46.8Department of Labor and Industry, Department of Agriculture, Department of Natural
46.9Resources, and the Minnesota Pollution Control Agency. The report shall include an
46.10analysis of how the agreement of the state to the specific provisions of the agreement
46.11will change or affect existing state law;
46.12    (ii) a statement of any administrative action proposed to implement these trade
46.13agreement provisions in the state; and
46.14    (iii) a draft of legislation authorizing the state to sign on to the specific listed
46.15provisions of the agreement in question;
46.16    (2) at least one public hearing, with adequate public notice, shall occur before the
46.17legislature votes on the bill; and
46.18    (3) the bill authorizing the state to sign on to specific listed provisions of an
46.19agreement is enacted into law.
46.20    (d) It is the sense of this legislature that Congress should pass legislation instructing
46.21the United States trade representative to fully and formally consult individual state
46.22legislatures regarding procurement, services, investment, or any other trade agreement
46.23rules that impact state laws or authority before negotiations begin and as they develop,
46.24and to seek consent from state legislatures in addition to governors prior to binding
46.25states to conform their laws to the terms of international commercial agreements. Such
46.26legislation is necessary to ensure the prior informed consent of the state with regard to
46.27future international trade and investment agreements.
46.28    (e) The state attorney general shall notify the United States trade representative of
46.29the policies in paragraph (d) in writing no later than 30 days after its effective date, and
46.30shall provide copies of the notice to the president of the senate, speaker of the house of
46.31representatives, the governor, and the state's congressional delegation.

46.32    Sec. 35. STUDY; SAFE PATIENT HANDLING.
46.33    (a) The commissioner of labor and industry shall study ways to require workers'
46.34compensation insurers to recognize compliance with Minnesota Statutes, section
46.35182.6553, in the workers' compensation premiums of health care and long-term care
47.1facilities. The commissioner shall report by January 15, 2008, the results of the study
47.2to the chairs of the policy committees of the legislature with primary jurisdiction over
47.3workers' compensation issues.
47.4    (b) By January 15, 2008, the commissioner must make recommendations to the
47.5legislature regarding funding sources available to health care facilities for safe patient
47.6handling programs and equipment, including, but not limited to, low interest loans, interest
47.7free loans, and federal, state, or county grants.

47.8    Sec. 36. WORK GROUP; SAFE PATIENT HANDLING.
47.9    The Minnesota State Council on Disability shall convene a work group comprised
47.10of representatives from the Minnesota Medical Association and other organizations
47.11representing clinics, disability advocates, and direct care workers, to do the following:
47.12    (1) assess the current options for and use of safe patient handling equipment in
47.13unlicensed outpatient clinics, physician offices, and dental settings;
47.14    (2) identify barriers to the use of safe patient handling equipment in these settings;
47.15and
47.16    (3) define clinical settings that move patients to determine applicability of the Safe
47.17Patient Handling Act.
47.18    The work group must report to the legislature by January 15, 2008, including
47.19reports to the chairs of the senate and house of representatives committees on workforce
47.20development.

47.21    Sec. 37. EFFECT ON RULES.
47.22    The commissioner of labor and industry shall amend Minnesota Rules, part
47.235200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner
47.24may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting
47.25the amendment required by this section.

47.26    Sec. 38. PUBLIC FACILITIES AUTHORITY FUNDING.
47.27    To the greatest practical extent, projects on the Public Facilities Authority's 2007
47.28intended use plan, the listings for which were based on the Pollution Control Agency's
47.292006 project priority list, shall be carried over to the 2008 intended use plan. Projects that
47.30qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258,
47.31section 21, that could not be certified by the Pollution Control Agency by the applicable
47.32deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court
48.1issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to
48.2obtain the required certification from the Pollution Control Agency.

48.3    Sec. 39. REPEALER.
48.4Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.

48.5ARTICLE 4
48.6LICENSING AND WAGES

48.7    Section 1. [154.465] HAIR BRAIDING.
48.8    Subdivision 1. Registration. Any person engaged in hair braiding solely for
48.9compensation as a profession, except persons licensed as cosmetologists, shall register
48.10with the Minnesota Board of Barber and Cosmetology Examiners in a form determined
48.11by the board.
48.12    Subd. 2. Definition. "Hair braiding" means a natural form of hair manipulation that
48.13results in tension on hair strands by beading, braiding, cornrowing, extending, lacing,
48.14locking, sewing, twisting, weaving, or wrapping human hair, natural fibers, synthetic
48.15fibers, and hair extensions into a variety of shapes, patterns, and textures predominantly by
48.16hand and by only using simple braiding devices, and maintenance thereof. Hair braiding
48.17includes what is commonly known as "African-style hair braiding" or "natural hair care"
48.18but is not limited to any particular cultural, ethnic, racial, or religious forms of hair styles.
48.19Hair braiding includes the making of customized wigs from natural hair, natural fibers,
48.20synthetic fibers, and hair extensions. Hair braiding includes the use of topical agents such
48.21as conditioners, gels, moisturizers, oils, pomades, and shampoos. Hair braiding does not
48.22involve the use of penetrating chemical hair treatments, chemical hair coloring agents,
48.23chemical hair straightening agents, chemical hair joining agents, permanent wave styles,
48.24or chemical hair bleaching agents applied to growing human hair. For purposes of this
48.25section, "simple hair braiding devices" means clips, combs, curlers, curling irons, hairpins,
48.26rollers, scissors, needles, thread, and hair binders including adhesives, if necessary, that
48.27are required solely for hair braiding.
48.28    Subd. 3. Requirements. In order to qualify for initial registration, any person
48.29engaged in hair braiding solely for compensation as a profession shall satisfactorily
48.30complete instruction at either an accredited school or by an individual, except persons
48.31licensed as cosmetologists approved by the board. Instruction includes coursework
48.32covering the topics of health, safety, sanitation, and state laws related to cosmetology not
48.33to exceed 30 hours. The coursework is encouraged to be provided in a foreign language
49.1format and such availability shall be reported to and posted by the Minnesota Board
49.2of Barber and Cosmetology Examiners.
49.3    Subd. 4. Curriculum. An accredited school or an individual approved by the board
49.4desiring to provide the coursework required under subdivision 3 shall have curriculum in
49.5place by January 1, 2008.
49.6EFFECTIVE DATE.This section is effective July 1, 2008, except subdivision 4 is
49.7effective the day following final enactment.

49.8    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:
49.9    Subdivision 1. Examination of records. The commissioner may enter during
49.10reasonable office hours or upon request and inspect the place of business or employment of
49.11any employer of employees working in the state, to examine and inspect books, registers,
49.12payrolls, and other records of any employer that in any way relate to wages, hours, and
49.13other conditions of employment of any employees. The commissioner may transcribe any
49.14or all of the books, registers, payrolls, and other records as the commissioner deems
49.15necessary or appropriate and may question the employees to ascertain compliance with
49.16sections 177.21 to 177.35 177.435. The commissioner may investigate wage claims or
49.17complaints by an employee against an employer if the failure to pay a wage may violate
49.18Minnesota law or an order or rule of the department.

49.19    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:
49.20    Subd. 4. Compliance orders. The commissioner may issue an order requiring an
49.21employer to comply with sections 177.21 to 177.35 177.435, 181.02, 181.03, 181.031,
49.22181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, 181.932,
49.23and 181.9325
, or with any rule promulgated under section 177.28. The department shall
49.24serve the order upon the employer or the employer's authorized representative in person or
49.25by certified mail at the employer's place of business. An employer who wishes to contest
49.26the order must file written notice of objection to the order with the commissioner within
49.2715 calendar days after being served with the order. A contested case proceeding must then
49.28be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
49.29served with the order, the employer fails to file a written notice of objection with the
49.30commissioner, the order becomes a final order of the commissioner.

49.31    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 5, is amended to read:
50.1    Subd. 5. Civil actions. (a) The commissioner may bring an action in the district
50.2court where an employer resides or where the commissioner maintains an office to enforce
50.3or require compliance with orders issued under subdivision 4.
50.4    (b) If the district court determines that a violation of section 181.932 or 181.9325
50.5occurred, the court may order any appropriate relief, including but not limited to
50.6reinstatement, back pay, restoration of lost service credit, if appropriate, compensatory
50.7damages, and the expungement of any adverse records of a state employee or applicant
50.8for state employment who was the subject of the alleged acts of misconduct, and any
50.9appropriate relief as described in section 181.936.

50.10    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:
50.11    Subd. 8. Court actions; suits brought by private parties. An employee may bring
50.12a civil action seeking redress for a violation or violations of sections 177.21 to 177.35
50.13177.44 directly to district court. An employer who pays an employee less than the wages
50.14and overtime compensation to which the employee is entitled under sections 177.21 to
50.15177.35 177.44 is liable to the employee for the full amount of the wages, gratuities, and
50.16overtime compensation, less any amount the employer is able to establish was actually
50.17paid to the employee and for an additional equal amount as liquidated damages. In
50.18addition, in an action under this subdivision the employee may seek damages and other
50.19appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement
50.20between the employee and the employer to work for less than the applicable wage is not
50.21a defense to the action.

50.22    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:
50.23    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may
50.24be filed in the district court of the county wherein a violation or violations of sections
50.25177.21 to 177.35 177.44 are alleged to have been committed, where the respondent resides
50.26or has a principal place of business, or any other court of competent jurisdiction. The
50.27action may be brought by one or more employees.

50.28    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:
50.29    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8,
50.30the court shall order an employer who is found to have committed a violation or violations
50.31of sections 177.21 to 177.35 177.44 to pay to the employee or employees reasonable costs,
50.32disbursements, witness fees, and attorney fees.

51.1    Sec. 8. Minnesota Statutes 2006, section 177.27, is amended by adding a subdivision
51.2to read:
51.3    Subd. 11. Investigation of certain complaints. (a) The commissioner shall conduct
51.4an investigation of any matter that alleges a violation of sections 181.932 and 181.9325.
51.5The identity of the person providing the information that initiated the investigation shall
51.6be classified as private data, pursuant to section 13.02, subdivision 12, except that the
51.7identity may be disclosed to a law enforcement agency that is conducting a criminal
51.8investigation of the matter.
51.9    (b) For each investigation completed, if the commissioner determines that there is
51.10reasonable cause to believe that an employer has violated section 181.932 or 181.9325,
51.11the commissioner shall report the nature and details of the alleged violation to the head
51.12of the employing agency or the appropriate appointing authority. If appropriate, the
51.13commissioner shall report this information to the attorney general, the policy committees
51.14of the house of representatives and senate having jurisdiction over the subject involved,
51.15and to any other authority that the commissioner deems appropriate. In any case
51.16in which the commissioner submits a report of alleged violations to the head of the
51.17employing agency or appropriate appointing authority, that individual shall report to the
51.18commissioner with respect to any action taken by the individual regarding the activity, the
51.19first report being transmitted no later than 30 days after the date of the auditor's report,
51.20and monthly thereafter until final action has been taken.
51.21    (c) This subdivision shall not limit any authority conferred upon the attorney general
51.22or other department or agency of government to investigate and prosecute any matter.
51.23    (d) The commissioner shall have all the powers and authority described in this
51.24section to conduct investigations pursuant to this subdivision.

51.25    Sec. 9. [177.275] INVESTIGATION PROCEDURE.
51.26    (a) The commissioner shall initiate an investigation of a written complaint of
51.27reprisal or retaliation in public employment as prohibited by section 181.932 or 181.9325
51.28within ten working days of its submission. The commissioner shall complete findings
51.29of the investigation within 60 working days thereafter, and shall provide a copy of the
51.30findings to the complaining employee or applicant for employment and to the appropriate
51.31supervisor, manager, employee, or appointing authority. When the allegations contained
51.32in a complaint of reprisal or retaliation are the same as, or similar to, those contained in
51.33another appeal, the commissioner may consolidate the appeals into the most appropriate
51.34format. In these cases, the time limits described in this subdivision shall not apply.
52.1    (b) If the commissioner finds that the supervisor, manager, employee, or appointing
52.2power retaliated against the complainant for engaging in protected whistle-blower
52.3activities, the commissioner may issue a compliance order under section 177.27,
52.4subdivision 4.
52.5    (c) In order for the governor and the legislature to determine the need to continue
52.6or modify state personnel procedures as they relate to the investigations of reprisals or
52.7retaliation for the disclosure of information by public employees, the commissioner, by
52.8June 30 of each year, shall submit a report to the governor and the legislature regarding
52.9complaints filed, hearings held, and legal actions taken under this section.

52.10    Sec. 10. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:
52.11    Subdivision 1. General authority. The commissioner may adopt rules, including
52.12definitions of terms, to carry out the purposes of sections 177.21 to 177.35 177.44, to
52.13prevent the circumvention or evasion of those sections, and to safeguard the minimum
52.14wage and overtime rates established by sections 177.24 and 177.25.

52.15    Sec. 11. Minnesota Statutes 2006, section 177.30, is amended to read:
52.16177.30 KEEPING RECORDS; PENALTY.
52.17    Every employer subject to sections 177.21 to 177.35 177.44 must make and keep a
52.18record of:
52.19    (1) the name, address, and occupation of each employee;
52.20    (2) the rate of pay, and the amount paid each pay period to each employee;
52.21    (3) the hours worked each day and each workweek by the employee; and
52.22    (4) for each employer subject to sections 177.41 to 177.44, and while performing
52.23work on public works projects funded in whole or in part with state funds, the prevailing
52.24wage master job classification of each employee working on the project for each hour
52.25worked; and
52.26    (4) (5) other information the commissioner finds necessary and appropriate to
52.27enforce sections 177.21 to 177.35. The records must be kept for three years in or near the
52.28premises where an employee works except each employer subject to sections 177.41 to
52.29177.44, and while performing work on public works projects funded in whole or in part
52.30with state funds, the records must be kept for three years after the contracting authority
52.31has made final payment on the public works project.
52.32    The commissioner may fine an employer up to $1,000 for each failure to maintain
52.33records as required by this section. This penalty is in addition to any penalties provided
52.34under section 177.32, subdivision 1. In determining the amount of a civil penalty under
53.1this subdivision, the appropriateness of such penalty to the size of the employer's business
53.2and the gravity of the violation shall be considered.

53.3    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:
53.4    Subd. 3. Contract requirements. The contract must specifically state the prevailing
53.5wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also
53.6provide that the contracting authority may demand and the contractor or subcontractor
53.7shall furnish to the contracting authority, copies of any and all payrolls, and that the
53.8contracting authority may examine all records relating to wages paid laborers or mechanics
53.9on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision
53.10are in addition to any other requirements or authority set forth in other laws or rules for
53.11work to which sections 177.41 to 177.44 apply.

53.12    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:
53.13    Subd. 4. Determination by commissioner; posting; petition for reconsideration.
53.14    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all
53.15trades and occupations required in any project must be ascertained before the state asks for
53.16bids. The commissioner of labor and industry shall investigate as necessary to ascertain
53.17the information. The commissioner Each contractor and subcontractor performing work
53.18on a public project shall keep the information posted on the project in at least one
53.19conspicuous place for the information of the employees working on the project. A person
53.20aggrieved by a final determination of the commissioner may petition the commissioner for
53.21reconsideration of findings. A person aggrieved by a decision of the commissioner after
53.22reconsideration may, within 20 days after the decision, petition the commissioner for a
53.23public hearing in the manner of a contested case under sections 14.57 to 14.61.

53.24    Sec. 14. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:
53.25    Subd. 6. Examination of records; investigation by the department. The
53.26Department of Labor and Industry shall enforce this section. The department may
53.27demand, and the contractor and subcontractor shall furnish to the department, copies
53.28of any or all payrolls. The department may examine all records relating to wages paid
53.29laborers or mechanics on work to which sections 177.41 to 177.44 apply. The department
53.30shall employ at least three investigators to perform on-site project reviews, receive and
53.31investigate complaints of violations of this section, and conduct training and outreach to
53.32contractors and contracting authorities for public works projects financed in whole or
53.33in part with state funds.

54.1    Sec. 15. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision
54.2to read:
54.3    Subd. 6a. Prevailing wage violations. Upon issuing a compliance order to an
54.4employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to
54.5177.44, the commissioner shall issue a withholding order to the contracting authority
54.6ordering the contracting authority to withhold payment of sufficient sum to the prime
54.7or general contractor on the project to satisfy the back wages assessed or otherwise
54.8cure the violation, and the contracting authority must withhold the sum ordered until
54.9the compliance order has become a final order of the commissioner and has been fully
54.10paid or otherwise resolved by the employer.
54.11    During an investigation of a violation of sections 177.41 to 177.44 which the
54.12commissioner reasonably determines is likely to result in the finding of a violation of
54.13sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section
54.14177.27, subdivision 4, the commissioner may notify the contracting authority of the
54.15determination and the amount expected to be assessed and the contracting authority shall
54.16give the commissioner 90 days' prior notice of the date the contracting authority intends to
54.17make final payment.

54.18    Sec. 16. [181.723] INDEPENDENT CONTRACTORS.
54.19    Subdivision 1. Scope. The definitions in this subdivision apply to this section.
54.20    (a) "Person" means any individual, limited liability corporation, corporation,
54.21partnership, incorporated or unincorporated association, sole proprietorship, joint stock
54.22company, or any other legal or commercial entity.
54.23    (b) "Department" means the Department of Labor and Industry.
54.24    (c) "Commissioner" means the commissioner of labor and industry or a duly
54.25designated representative of the commissioner who is either an employee of the
54.26Department of Labor and Industry or person working under contract with the Department
54.27of Labor and Industry.
54.28    (d) "Individual" means a human being.
54.29    (e) "Day" means calendar day unless otherwise provided.
54.30    (f) "Knowingly" means knew or could have known with the exercise of reasonable
54.31diligence.
54.32    (g) "Document" or "documents" includes papers; books; records; memoranda; data;
54.33contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings;
54.34records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars
54.35maintained in any form or manner.
55.1    Subd. 2. Limited application. This section only applies to individuals performing
55.2public or private sector commercial or residential building construction or improvement
55.3services.
55.4    Subd. 3. Employee-employer relationship. Except as provided in subdivision
55.54, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an
55.6individual who performs services for a person that are in the course of the person's trade,
55.7business, profession, or occupation is an employee of that person and that person is an
55.8employer of the individual.
55.9    Subd. 4. Independent contractor. An individual is an independent contractor and
55.10not an employee of the person for whom the individual is performing services in the course
55.11of the person's trade, business, profession, or occupation only if (a) the individual holds
55.12a current independent contractor exemption certificate issued by the commissioner; and
55.13(b) the individual is performing services for the person under the independent contractor
55.14exemption certificate as provided in subdivision 6. The requirements in clauses (a) and (b)
55.15must be met in order to qualify as an independent contractor and not as an employee of
55.16the person for whom the individual is performing services in the course of the person's
55.17trade, business, profession, or occupation.
55.18    Subd. 5. Application. To obtain an independent contractor exemption certificate,
55.19the individual must submit, in the manner prescribed by the commissioner, a complete
55.20application and the certificate fee required under subdivision 14.
55.21    (a) A complete application must include all of the following information:
55.22    (1) the individual's full name;
55.23    (2) the individual's residence address and telephone number;
55.24    (3) the individual's business name, address, and telephone number;
55.25    (4) the services for which the individual is seeking an independent contractor
55.26exemption certificate;
55.27    (5) the individual's Social Security number;
55.28    (6) the individual's or the individual's business federal employer identification
55.29number, if a number has been issued to the individual or the individual's business;
55.30    (7) any information or documentation that the commissioner requires by rule that
55.31will assist the department in determining whether to grant or deny the individual's
55.32application; and
55.33    (8) The individual's sworn statement that the individual meets all of the following
55.34conditions:
55.35    (i) the individual maintains a separate business with the individual's own office,
55.36equipment, materials, and other facilities;
56.1    (ii) the individual holds or has applied for a federal employer identification number
56.2or has filed business or self-employment income tax returns with the federal Internal
56.3Revenue Service if the person has performed services in the previous year for which the
56.4individual is seeking the independent contractor exemption certificate;
56.5    (iii) the individual operates under contracts to perform specific services for specific
56.6amounts of money and under which the individual controls the means of performing the
56.7services;
56.8    (iv) the individual incurs the main expenses related to the service that the individual
56.9performs under contract;
56.10    (v) the individual is responsible for the satisfactory completion of services that the
56.11individual contracts to perform and is liable for a failure to complete the service;
56.12    (vi) the individual receives compensation for service performed under a contract on
56.13a commission or per-job or competitive bid basis and not on any other basis;
56.14    (vii) the individual may realize a profit or suffer a loss under contracts to perform
56.15service;
56.16    (viii) the individual has continuing or recurring business liabilities or obligations; and
56.17    (ix) the success or failure of the individual's business depends on the relationship of
56.18business receipts to expenditures.
56.19    (b) Within 30 days of receiving a complete application and the certificate fee, the
56.20commissioner must either grant or deny the application. The commissioner may deny
56.21an application for an independent contractor exemption certificate if the individual has
56.22not submitted a complete application and certificate fee or if the individual does not
56.23meet all of the conditions for holding the independent contractor exemption certificate.
56.24The commissioner may revoke an independent contractor exemption certificate if the
56.25commissioner determines that the individual no longer meets all of the conditions for
56.26holding the independent contractor exemption certificate, commits any of the actions
56.27set out in subdivision 7, or fails to cooperate with a department investigation into the
56.28continued validity of the individual's certificate. Once issued, an independent contractor
56.29exemption certificate remains in effect for two years unless:
56.30    (1) revoked by the commissioner; or
56.31    (2) canceled by the individual.
56.32    (c) If the department denies an individual's original or renewal application for
56.33an independent contractor exemption certificate or revokes an independent contractor
56.34exemption certificate, the commissioner shall issue to the individual an order denying or
56.35revoking the certificate. The commissioner may issue an administrative penalty order to
56.36an individual or person who commits any of the actions set out in subdivision 7.
57.1    (d) An individual or person to whom the commissioner issues an order under
57.2paragraph (c) shall have 30 days after service of the order to request a hearing. The request
57.3for hearing must be in writing and must be served on or faxed to the commissioner at the
57.4address or fax number specified in the order by the 30th day after service of the order.
57.5If the individual does not request a hearing or if the individual's request for a hearing is
57.6not served on or faxed to the commissioner by the 30th day after service of the order, the
57.7order shall become a final order of the commissioner and will not be subject to review
57.8by any court or agency. The date on which a request for hearing is served by mail shall
57.9be the postmark date on the envelope in which the request for hearing is mailed. If the
57.10individual serves or faxes a timely request for hearing, the hearing shall be a contested
57.11case hearing and shall be held in accordance with chapter 14.
57.12    Subd. 6. Qualifications for exemption certificate. An individual is performing
57.13services for a person under an independent contractor exemption certificate if:
57.14    (a) the individual is performing services listed on the individual's independent
57.15contractor exemption certificate;
57.16    (b) at the time the individual is performing services listed on the individual's
57.17independent contractor exemption certificate, the individual meets all of the following
57.18conditions:
57.19    (1) the individual maintains a separate business with the individual's own office,
57.20equipment, materials, and other facilities;
57.21    (2) the individual holds or has applied for a federal employer identification number
57.22or has filed business or self-employment income tax returns with the federal Internal
57.23Revenue Service if the individual performed services in the previous year for which the
57.24individual has the independent contractor exemption certificate;
57.25    (3) the individual is operating under contract to perform the specific services for
57.26the person for specific amounts of money and under which the individual controls the
57.27means of performing the services;
57.28    (4) the individual is incurring the main expenses related to the services that the
57.29individual is performing for the person under the contract;
57.30    (5) the individual is responsible for the satisfactory completion of the services
57.31that the individual has contracted to perform for the person and is liable for a failure
57.32to complete the services;
57.33    (6) the individual receives compensation from the person for the services performed
57.34under the contract on a commission or per-job or competitive bid basis and not on any
57.35other basis;
58.1    (7) the individual may realize a profit or suffers a loss under the contract to perform
58.2services for the person;
58.3    (8) the individual has continuing or recurring business liabilities or obligations; and
58.4    (9) the success or failure of the individual's business depends on the relationship of
58.5business receipts to expenditures.
58.6    Subd. 7. Prohibited activities. (a) An individual shall not:
58.7    (1) perform work as an independent contractor who meets the qualifications under
58.8subdivision 6, without first obtaining from the department an independent contractor
58.9exemption certificate;
58.10    (2) perform work as an independent contractor when the department has denied or
58.11revoked the individual's independent contractor exemption certificate;
58.12    (3) transfer to another individual or allow another individual to use the individual's
58.13independent contractor exemption certificate;
58.14    (4) alter or falsify an independent contractor exemption certificate;
58.15    (5) misrepresent the individual's status as an independent contractor; or
58.16    (6) make a false material statement, representation, or certification; omit material
58.17information; or alter, conceal, or fail to file a document required by this section or any rule
58.18promulgated by the commissioner under rulemaking authority set out in this section.
58.19    (b) A person shall not:
58.20    (1) require an individual through coercion, misrepresentation, or fraudulent means to
58.21adopt independent contractor status;
58.22    (2) knowingly misrepresent that an individual who has not been issued an
58.23independent contractor exemption certificate or is not performing services for the person
58.24under an independent contractor exemption certificate is an independent contractor; or
58.25    (3) make a false material statement, representation, or certification; omit material
58.26information; or alter, conceal, or fail to file a document required by this section or any rule
58.27promulgated by the commissioner under rulemaking authority set out in this section.
58.28    (c) A person for whom an individual is performing services must obtain a copy of the
58.29individual's independent contractor exemption certificate before services may commence.
58.30A copy of the independent contractor exemption certificate must be retained for five years
58.31from the date of receipt by the person for whom an individual is performing services.
58.32    Subd. 8. Remedies. An individual or person who violates any provision of
58.33subdivision 7 is subject to a penalty to be assessed by the department of up to $5,000 for
58.34each violation. The department shall deposit penalties in the assigned risk safety account.
58.35    Subd. 9. Commissioner's powers. (a) In order to carry out the purposes of this
58.36section, the commissioner may:
59.1    (1) administer oaths and affirmations, certify official acts, interview, question, take
59.2oral or written statements, and take depositions;
59.3    (2) request, examine, take possession of, photograph, record, and copy any
59.4documents, equipment, or materials;
59.5    (3) at a time and place indicated by the commissioner, request persons to appear
59.6before the commissioner to give testimony and produce documents, equipment, or
59.7materials;
59.8    (4) issue subpoenas to compel persons to appear before the commissioner to give
59.9testimony and produce documents, equipment, or materials; and
59.10    (5) with or without notice, enter without delay upon any property, public or private,
59.11for the purpose of taking any action authorized under this subdivision or the applicable
59.12law, including obtaining information or conducting inspections or investigations.
59.13    (b) Persons requested by the commissioner to give testimony or produce documents,
59.14equipment, or materials shall respond within the time and in the manner specified by the
59.15commissioner. If no time to respond is specified in the request, then a response shall be
59.16submitted within 30 days of the commissioner's service of the request.
59.17    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property
59.18owner's representative, or lessee's representative to permit the commissioner's entry onto
59.19property as provided in paragraph (a), the commissioner may apply for an administrative
59.20inspection order in the Ramsey County District Court or, at the commissioner's discretion,
59.21in the district court in the county in which the property is located. The commissioner may
59.22anticipate that a property owner or lessee will refuse entry if the property owner, lessee,
59.23property owner's representative, or lessee's representative has refused to permit entry on a
59.24prior occasion or has informed the commissioner that entry will be refused. Upon showing
59.25of administrative probable cause by the commissioner, the district court shall issue an
59.26administrative inspection order that compels the property owner or lessee to permit the
59.27commissioner to enter the property for the purposes specified in paragraph (a).
59.28    (d) Upon the application of the commissioner, a district court shall treat the failure of
59.29any person to obey a subpoena lawfully issued by the commissioner under this subdivision
59.30as a contempt of court.
59.31    Subd. 10. Notice requirements. Unless otherwise specified, service of a document
59.32on a person under this section may be by mail, by personal service, or in accordance with
59.33any consent to service filed with the commissioner. Service by mail shall be accomplished
59.34in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service
59.35shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550,
59.36subpart 3.
60.1    Subd. 11. Facsimile; timely service. When this section permits a request for
60.2hearing to be served by facsimile on the commissioner, the facsimile shall not exceed 15
60.3pages in length. The request shall be considered timely served if the facsimile is received
60.4by the commissioner, at the facsimile number identified by the commissioner in the order,
60.5no later than 4:30 p.m. central time on the last day permitted for faxing the request.
60.6Where the quality or authenticity of the faxed request is at issue, the commissioner
60.7may require the original request to be filed. Where the commissioner has not identified
60.8quality or authenticity of the faxed request as an issue and the request has been faxed in
60.9accordance with this subdivision, the person faxing the request does not need to file the
60.10original request with the commissioner.
60.11    Subd. 12. Time period computation. In computing any period of time prescribed
60.12or allowed by this section, the day of the act, event, or default from which the designated
60.13period of time begins to run shall not be included. The last day of the period so computed
60.14shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the
60.15period runs until the next day which is not a Saturday, Sunday, or legal holiday.
60.16    Subd. 13. Rulemaking. The commissioner may, in consultation with the
60.17commissioner of revenue and the commissioner of employment and economic
60.18development, adopt, amend, suspend, and repeal rules under the rulemaking provisions
60.19of chapter 14 that relate to the commissioner's responsibilities under this section. This
60.20subdivision is effective the day following final enactment.
60.21    Subd. 14. Fee. The certificate fee for the original application and for the renewal
60.22of an independent contractor exemption certificate shall be $150. If an individual
60.23simultaneously submits an application for both an independent contractor exemption
60.24certificate under this section and a license under section 326.84, the application fee for
60.25the independent contractor exemption certificate shall be reduced to $100. Fees collected
60.26under this subdivision are deposited in the general fund.
60.27    Subd. 15. Notice to commissioner; review by commissioner of revenue. When
60.28the commissioner has reason to believe that an individual who holds a certificate has failed
60.29to maintain all the conditions required by subdivision 3 or is not performing services for a
60.30person under the independent contractor exemption certificate, the commissioner must
60.31notify the commissioner of revenue and the commissioner of employment and economic
60.32development. Upon receipt of notification from the commissioner that an individual who
60.33holds a certificate has failed to maintain all the conditions required by subdivision 3
60.34or is not performing services for a person under the independent contractor exemption
60.35certificate, the commissioner of revenue must review the information returns required
60.36under section 6041A of the Internal Revenue Code. The commissioner of revenue shall
61.1also review the submitted certification that is applicable to returns audited or investigated
61.2under section 289A.35.
61.3    Subd. 16. Data classified. Certifications issued by the commissioner are public
61.4data. Applications and required documentation submitted by an individual is private
61.5data on an individual. Upon request of the Department of Revenue or the Department
61.6of Employment and Economic Development, the commissioner may release to the
61.7Department of Revenue and the Department of Employment and Economic Development
61.8applications and required documentation submitted by individuals and investigative data
61.9that relates to the department's issuance or denial of applications and the department's
61.10revocations of certificates. Except as otherwise provided by this subdivision, the
61.11department's investigative data shall be classified as provided in chapter 13.
61.12EFFECTIVE DATE.This section is effective July 1, 2008.

61.13    Sec. 17. [181.724] PERFORMERS IN RECORDED MEDIA INDUSTRY.
61.14    Subdivision 1. Definitions. The definitions in this subdivision apply to section
61.15181.724.
61.16    (a) "Performer" means actor, announcer, singer, dancer, narrator, stunt-person, extra,
61.17or any other individual generically or customarily referred to as talent in the recorded
61.18media industry.
61.19    (b) "Recorded media industry" means radio or television commercial production,
61.20nonbroadcast audio or video production, sound recording, audio or video production for
61.21the internet, or any other recording technology.
61.22    (c) "Individual" means a human being.
61.23    (d) "Person" means any individual, limited liability corporation, corporation,
61.24partnership, incorporated or unincorporated association, sole proprietorship, joint stock
61.25company, or any other legal or commercial entity.
61.26    Subd. 2. Limited application. This section applies only to individuals who
61.27are performers in the recorded media industry. This section does not apply to live
61.28performances.
61.29    Subd. 3. Employee-employer relationship. For the purposes of chapters 176,
61.30177, 181A, 182, and 268, an individual who provides services as a performer in the
61.31recorded media industry for a person that are in the course of the person's trade, business,
61.32profession, or occupation is an employee of that person and that person is an employer of
61.33the individual.
61.34    Subd. 4. Civil remedy. An individual who has been injured by a violation of this
61.35section may bring a civil action for damages against the violator. If the individual is
62.1an employee of the violator of this section, the employee's representative, as defined in
62.2section 179.01, subdivision 5, may bring a civil action for damages against the violator on
62.3behalf of the employee. The court may award attorney fees, costs, and disbursement to an
62.4individual recovering under this section.
62.5    Subd. 5. Reporting of violations. Any court finding that a violation of this section
62.6has occurred shall transmit a copy of its findings of fact and conclusions of law to the
62.7commissioner of labor and industry. The commissioner of labor and industry shall report
62.8the finding to relevant state and federal agencies, including the commissioner of commerce,
62.9the commissioner of employment and economic development, the commissioner of
62.10revenue, the federal Internal Revenue Service, and the United States Department of Labor.
62.11EFFECTIVE DATE.This section is effective January 1, 2008.

62.12    Sec. 18. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:
62.13    Subdivision 1. Prohibited action. An employer shall not discharge, discipline,
62.14threaten, otherwise discriminate against, or penalize an employee regarding the employee's
62.15compensation, terms, conditions, location, or privileges of employment because:
62.16    (a) the employee, or a person acting on behalf of an employee, in good faith, reports
62.17a violation or suspected violation of any federal or state law or rule adopted pursuant
62.18to law to an employer or to any governmental body or law enforcement official and
62.19the alleged violation involves a matter of public concern, including, but not limited to,
62.20violations that create a specific danger to the public health, safety, or environment;
62.21    (b) the employee is requested by a public body or office to participate in an
62.22investigation, hearing, inquiry;
62.23    (c) the employee refuses an employer's order to perform an action that the employee
62.24has an objective basis in fact to believe violates any state or federal law or rule or
62.25regulation adopted pursuant to law which violation the employee reasonably believes
62.26is a matter of public concern, including, but not limited to, violations that create a
62.27specific danger to the public health, safety, or environment, and the employee informs the
62.28employer that the order is being refused for that reason; or
62.29    (d) the employee, in good faith, reports a situation in which the quality of health care
62.30services provided by a health care facility, organization, or health care provider violates a
62.31standard established by federal or state law or a professionally recognized national clinical
62.32or ethical standard and potentially places the public at risk of harm.;
62.33    (e) a public employee refuses to alter, dilute, or suppress the objective representation
62.34or communication of scientific or technical data or findings, including but not limited to,
63.1findings of economic or environmental impact, or findings indicating consequences for
63.2the public's health or safety; or
63.3    (f) a public employee communicates the findings of a scientific or technical study
63.4that the employee, in good faith, believes to be truthful and accurate, including reports to a
63.5governmental body or law enforcement official.
63.6The disclosures protected pursuant to this section do not authorize the disclosure of trade
63.7secret information otherwise protected by law.

63.8    Sec. 19. [181.9325] USE OF AUTHORITY TO INFLUENCE OR INTERFERE
63.9WITH DISCLOSURE OF INFORMATION.
63.10    (a) A public employer may not directly or indirectly use or attempt to use the
63.11employer's official authority or influence for the purpose of intimidating, threatening,
63.12coercing, or attempting to intimidate, threaten, or coerce any person for the purpose of
63.13interfering with the rights described in section 181.932, or for the purpose of persuading
63.14the person to waive or disclaim any other legal rights related to the person's employment.
63.15    (b) For purposes of this section, "use of official authority or influence" includes:
63.16promising to confer, or conferring, any benefit; effecting, or threatening to effect, any
63.17reprisal; or taking, or directing others to take, or recommending, processing, or approving,
63.18any personnel action, including but not limited to appointment, promotion, transfer,
63.19assignment, performance evaluation, suspension, or other disciplinary action.

63.20    Sec. 20. Minnesota Statutes 2006, section 181.935, is amended to read:
63.21181.935 INDIVIDUAL REMEDIES; PENALTY.
63.22    (a) In addition to any remedies otherwise provided by law, an employee injured
63.23by a violation of section 181.932 or 181.9325 may bring a civil action to recover any
63.24and all damages recoverable at law, together with costs and disbursements, including
63.25reasonable attorney's fees, and may receive such injunctive and other equitable relief as
63.26determined by the court.
63.27    (b) An employer who failed to notify, as required under section 181.933 or 181.934,
63.28an employee injured by a violation of section 181.932 is subject to a civil penalty of $25
63.29per day per injured employee not to exceed $750 per injured employee.

63.30    Sec. 21. [181.936] REPRISALS FOR DISCLOSURE OF IMPROPER
63.31GOVERNMENTAL ACTIVITIES; COMPLAINT PROCEDURE; PENALTIES.
63.32    (a) A public employee or applicant for public employment who files a written
63.33complaint with the employee's or applicant's supervisor, manager, or the appointing
64.1power alleging actual or attempted acts of reprisal, retaliation, threats, coercion, or
64.2similar improper acts prohibited by section 181.9325, may also file a copy of the written
64.3complaint with the commissioner of labor and industry, together with a sworn statement
64.4that the contents of the written complaint are true, or are believed by the affiant to be true,
64.5under penalty of perjury. The complaint filed with the commissioner shall be filed within
64.612 months of the most recent act of reprisal complained about.
64.7    (b) Any person who intentionally engages in acts of reprisal, retaliation, threats,
64.8coercion, or similar acts against a public employee or applicant for public employment
64.9for having made a protected disclosure under section 181.932, is subject to a fine not to
64.10exceed $10,000 and imprisonment in the county jail for a period not to exceed one year.
64.11    (c) In addition to all other penalties provided by law, any person who intentionally
64.12engages in acts of reprisal, retaliation, threats, coercion, or similar acts against a public
64.13employee or applicant for public employment for having made a protected disclosure shall
64.14be liable in an action for damages brought against the person by the injured party. Punitive
64.15damages may be awarded by the court where the acts of the offending party are proven to
64.16be malicious. Where liability has been established, the injured party shall also be entitled
64.17to reasonable attorney fees as provided by law. However, any action for damages shall not
64.18be available to the injured party unless the injured party has first filed a complaint with the
64.19commissioner of labor and industry under paragraph (a), and the department has issued, or
64.20failed to issue, findings under section 177.275.
64.21    (d) This section is not intended to prevent an appointing power, manager, or
64.22supervisor from taking, directing others to take, recommending, or approving any
64.23personnel action or from taking or failing to take a personnel action with respect to any
64.24public employee or applicant for public employment if the appointing power, manager, or
64.25supervisor reasonably believes any action or inaction is justified on the basis of evidence
64.26separate and apart from the fact that the person has made a protected disclosure under
64.27section 181.932.
64.28    (e) In any civil action or administrative proceeding, once it has been demonstrated
64.29by a preponderance of evidence that an activity protected by sections 177.27, 177.275,
64.30181.932, and 181.9325 was a contributing factor in the alleged retaliation against a former,
64.31current, or prospective employee, the burden of proof shall be on the supervisor, manager,
64.32or appointing power to demonstrate by clear and convincing evidence that the alleged
64.33action would have occurred for legitimate, independent reasons even if the employee had
64.34not engaged in protected disclosures or refused an illegal order. If the supervisor, manager,
64.35or appointing power fails to meet this burden of proof in an adverse action against the
64.36employee in any administrative review, challenge, or adjudication in which retaliation
65.1has been demonstrated to be a contributing factor, the employee shall have a complete
65.2affirmative defense in the adverse action.
65.3    (f) Nothing in sections 177.27, 177.275, 181.932, and 181.9325 shall be deemed to
65.4diminish the rights, privileges, or remedies of any employee under any other federal or
65.5state law or under any employment contract or collective bargaining agreement.

65.6    Sec. 22. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:
65.7    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who,
65.8during some part of the period of the sales representative agreement:
65.9    (1) is a resident of Minnesota or maintains that person's principal place of business
65.10in Minnesota; or
65.11    (2) whose geographical territory specified in the sales representative agreement
65.12includes part or all of Minnesota.
65.13    (b) To be effective, any demand for arbitration under subdivision 5 must be made
65.14in writing and delivered to the principal on or before one year after the effective date of
65.15the termination of the agreement.
65.16    (c) A provision in any contract between a sales representative dealing in plumbing
65.17equipment or supplies and a principal purporting to waive any provision of this act,
65.18whether by express waiver or by a provision stipulating that the contract is subject to the
65.19laws of another state, shall be void.

65.20    Sec. 23. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:
65.21    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by
65.22rule, prescribe minimum standards which shall be uniform, and which standards shall
65.23thereafter be effective for all new plumbing installations, including additions, extensions,
65.24alterations, and replacements connected with any water or sewage disposal system owned
65.25or operated by or for any municipality, institution, factory, office building, hotel, apartment
65.26building, or any other place of business regardless of location or the population of the
65.27city or town in which located. Notwithstanding the provisions of Minnesota Rules, part
65.284715.3130, as they apply to review of plans and specifications, the commissioner may
65.29allow plumbing construction, alteration, or extension to proceed without approval of the
65.30plans or specifications by the commissioner.
65.31    Except for powers granted to the Plumbing Board, the commissioner of labor and
65.32industry shall administer the provisions of sections 326.37 to 326.45 and for such purposes
65.33may employ plumbing inspectors and other assistants.

66.1    Sec. 24. Minnesota Statutes 2006, section 326.37, is amended by adding a subdivision
66.2to read:
66.3    Subd. 4. Air admittance valves and water-free urinals prohibited. (a)
66.4Mechanical devices and fittings with internal moving parts are prohibited from installation
66.5in plumbing venting systems.
66.6    (b) All urinals covered under the jurisdiction of the state plumbing code must have a
66.7water flush device with a volume of not more than one gallon per use.

66.8    Sec. 25. [326.372] PLUMBING BOARD.
66.9    Subdivision 1. Composition. (a) The Plumbing Board shall consist of 12 voting
66.10members who must be residents of the state, appointed by the governor, and confirmed
66.11by the senate. The commissioner of labor and industry or the commissioner's designee
66.12shall be a voting member. The first appointed board members shall serve an initial term
66.13of four years, except where designated otherwise. The governor shall then reappoint the
66.14current members or appoint replacement members, all or in part, to subsequent three-year
66.15terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies
66.16occurring with less than six months time remaining in the term shall be filled for the
66.17existing term and the following three-year term. Of the 11 appointed members, the
66.18composition shall be as follows:
66.19    (1) two members shall be municipal plumbing inspectors, one from the seven-county
66.20metro area and one from greater Minnesota;
66.21    (2) one member shall be a licensed mechanical engineer;
66.22    (3) two members serving an initial term of three years shall be plumbing contractors
66.23or the representative of the contractor, engaged in a commercial scope of plumbing
66.24contracting, one from the metropolitan area and one from greater Minnesota;
66.25    (4) two members serving an initial term of three years shall be plumbing contractors
66.26or their representatives, engaged in the residential scope of plumbing contracting, one
66.27from the metro area and one from greater Minnesota;
66.28    (5) two members serving an initial term of two years shall be plumbing
66.29journeypersons engaged in a commercial scope of plumbing systems installation, one
66.30from the metro area and one from greater Minnesota; and
66.31    (6) two members serving an initial term of two years shall be plumbing
66.32journeypersons engaged in a residential scope of plumbing systems installation, one from
66.33the metro area and one from greater Minnesota.
67.1    (b) Except for the licensed mechanical engineer, all persons appointed to the
67.2council must possess a current Minnesota plumbing license and maintain the license for
67.3the duration of their term.
67.4    Subd. 2. Powers. (a) The board shall have the power to:
67.5    (1) elect its chair;
67.6    (2) specify the plumbing code that must be followed in this state;
67.7    (3) maintain a review process to make determinations regarding any complaints,
67.8code amendments, code compliance, and code clarifications filed with the board;
67.9    (4) adopt rules necessary for the regulation and licensing of contractors,
67.10journeypersons, apprentices, and other persons engaged in the design, installation, and
67.11alteration of plumbing systems that would include the issuing, renewing, revoking,
67.12refusing to renew, and suspending a plumbing license, except for persons licensed under
67.13sections 326.02 to 326.15;
67.14    (5) adopt rules necessary for continuing education for individuals regulated and
67.15licensed under this section;
67.16    (6) make recommendations to the commissioner regarding educational requirements
67.17for plumbing inspectors; and
67.18    (7) pay expenses deemed necessary in the performance of board duties, including:
67.19    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18,
67.20subdivision 2; and
67.21    (ii) per diem and expenses for its members as provided in section 15.0575,
67.22subdivision 3.
67.23    (b) Requests under the review process in paragraph (a), clause (3), may originate
67.24with the municipal inspectors, the plumbing contractors or their employees, and other
67.25persons engaged in the design, installation, and alteration of plumbing systems. The board
67.26shall make its findings known to all parties and the commissioner of labor and industry
67.27within the time period specified by the board.
67.28    Subd. 3. Fees and finances. The board shall submit an annual budget to the
67.29commissioner of labor and industry. The commissioner shall collect fees under section
67.30326.42 necessary for the operation and continuance of the board. The commissioner is
67.31responsible for the enforcement of the codes and licensing requirements determined by
67.32the board. The board shall recommend the fees for licenses and certification under this
67.33section. The commissioner of finance shall make a quarterly certification of the amount
67.34necessary to pay expenses required for operation of the board under subdivision 2,
67.35paragraph (a), clause (6). The certified amount is appropriated in fiscal years 2008 and
67.362009 to the board for those purposes from the fees collected under section 326.42.
68.1    Subd. 4. Transfer of authority; Plumbing Board. The authority of the
68.2commissioners of health and labor and industry to adopt rules relating to plumbers is
68.3transferred to the Plumbing Board. Licenses and permits currently in effect remain in
68.4effect according to their terms unless affected by board action. Rules adopted by the
68.5commissioner of health or labor and industry remain in effect until amended or repealed
68.6by the board. The commissioner of administration may not use the authority under section
68.716B.37 to modify the transfers of authority in this act.
68.8    Subd. 5. First meeting; appointments for Plumbing Board. The governor must
68.9complete the appointments required by section 326.372 no later than July 1, 2007. The
68.10commissioner of labor and industry shall convene the first meeting of the Plumbing Board
68.11no later than September 1, 2007.

68.12    Sec. 26. Minnesota Statutes 2006, section 326.38, is amended to read:
68.13326.38 LOCAL REGULATIONS.
68.14    Any city having a system of waterworks or sewerage, or any town in which reside
68.15over 5,000 people exclusive of any statutory cities located therein, or the metropolitan
68.16airports commission, may, by ordinance, adopt local regulations providing for plumbing
68.17permits, bonds, approval of plans, and inspections of plumbing, which regulations are
68.18not in conflict with the plumbing standards on the same subject prescribed by the state
68.19commissioner of health Plumbing Board. No city or such town shall prohibit plumbers
68.20licensed by the state commissioner of health labor and industry from engaging in or
68.21working at the business, except cities and statutory cities which, prior to April 21, 1933,
68.22by ordinance required the licensing of plumbers. No city or town may require a license
68.23for persons performing building sewer or water service installation who have completed
68.24pipe laying training as prescribed by the commissioner of labor and industry. Any city
68.25by ordinance may prescribe regulations, reasonable standards, and inspections and grant
68.26permits to any person, firm, or corporation engaged in the business of installing water
68.27softeners, who is not licensed as a master plumber or journeyman plumber by the state
68.28commissioner of health labor and industry, to connect water softening and water filtering
68.29equipment to private residence water distribution systems, where provision has been
68.30previously made therefor and openings left for that purpose or by use of cold water
68.31connections to a domestic water heater; where it is not necessary to rearrange, make any
68.32extension or alteration of, or addition to any pipe, fixture or plumbing connected with
68.33the water system except to connect the water softener, and provided the connections so
68.34made comply with minimum standards prescribed by the state commissioner of health
68.35Plumbing Board.

69.1    Sec. 27. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:
69.2    Subdivision 1. License required; master and journeyman plumbers. In any city
69.3now or hereafter having 5,000 or more population, according to the last federal census,
69.4and having a system of waterworks or sewerage, (a) No person, firm, or corporation shall
69.5engage in or work at the business of a master plumber or, restricted master plumber,
69.6journeyman plumber, and restricted journeyman plumber unless licensed to do so by the
69.7state commissioner of health labor and industry. A license is not required for persons
69.8performing building sewer or water service installation who have completed pipe laying
69.9training as prescribed by the commissioner of labor and industry. A master plumber may
69.10also work as a journeyman plumber, a restricted journeyman plumber, and a restricted
69.11master plumber. A journeyman plumber may also work as a restricted journeyman
69.12plumber. Anyone not so licensed may do plumbing work which complies with the
69.13provisions of the minimum standard prescribed by the state commissioner of health
69.14Plumbing Board on premises or that part of premises owned and actually occupied by the
69.15worker as a residence, unless otherwise forbidden to do so by a local ordinance.
69.16    In any such city (b) No person, firm, or corporation shall engage in the business of
69.17installing plumbing nor install plumbing in connection with the dealing in and selling
69.18of plumbing material and supplies unless at all times a licensed master plumber, or in
69.19cities and towns with a population of fewer than 5,000 according to the federal census a
69.20restricted master plumber, who shall be responsible for proper installation, is in charge
69.21of the plumbing work of the person, firm, or corporation.
69.22    The Department of Health Plumbing Board shall prescribe rules, not inconsistent
69.23herewith, for the examination and licensing of plumbers.

69.24    Sec. 28. Minnesota Statutes 2006, section 326.401, subdivision 2, is amended to read:
69.25    Subd. 2. Journeyman exam. A plumber's apprentice who has completed four years
69.26of practical plumbing experience is eligible to take the journeyman plumbing examination.
69.27Up to 24 months of practical plumbing experience prior to registration as an apprentice
69.28may be applied to the four-year experience requirement. However, none of this practical
69.29plumbing experience may be applied if the person did not have any practical plumbing
69.30experience in the 12-month period immediately prior to registration. The commissioner
69.31Plumbing Board may adopt rules to evaluate whether the person's past practical plumbing
69.32experience is applicable in preparing for the journeyman's examination. If two years
69.33after completing the training the person has not taken the examination, the four years
69.34of experience shall be forfeited.
70.1    The commissioner may allow an extension of the two-year period for taking the
70.2exam for cases of hardship or other appropriate circumstances.

70.3    Sec. 29. [326.402] RESTRICTED PLUMBER LICENSE.
70.4    Subdivision 1. Licensure. The commissioner of labor and industry shall grant a
70.5restricted journeyman or master plumber license to an individual if:
70.6    (1) the individual completes an application with information required by the
70.7commissioner of labor and industry;
70.8    (2) the completed application is accompanied by a fee of $90;
70.9    (3) the commissioner of labor and industry receives the completed application and
70.10fee before January 1, 2008;
70.11    (4) the completed application demonstrates that the applicant has had at least two
70.12years for a restricted journeyman plumber license or four years for a restricted master
70.13plumber license of practical plumbing experience in the plumbing trade prior to the
70.14application; and
70.15    (5) during the entire time for which the applicant is claiming experience in
70.16contracting for plumbing work under clause (4), the applicant was in compliance with all
70.17applicable requirements of section 326.40.
70.18    Subd. 2. Use of license. A restricted master plumber and restricted journeyman
70.19plumber may engage in the plumbing trade in all areas of the state except in cities and
70.20towns with a population of more than 5,000 according to the federal census.
70.21    Subd. 3. Application period. Applications for restricted master plumber and
70.22restricted journeyman plumber licenses must be submitted to the commissioner prior
70.23to January 1, 2008.
70.24    Subd. 4. Renewal; use period for license. A restricted master plumber and
70.25restricted journeyman plumber license must be renewed annually for as long as that
70.26licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
70.27restricted journeyman plumber license within 12 months after the expiration date will
70.28result in permanent forfeiture of the restricted master plumber and restricted journeyman
70.29plumber license.
70.30    Subd. 5. Prohibition of transference. A restricted master plumber and restricted
70.31journeyman plumber license may not be transferred or sold to any other person.
70.32    Subd. 6. Bond; insurance. A restricted master plumber licensee is subject to the
70.33bond and insurance requirements of section 326.40, subdivision 2, unless the exemption
70.34provided by section 326.40, subdivision 3, applies.
71.1    Subd. 7. Fee. The annual fee for the restricted master plumber and restricted
71.2journeyman plumber licenses is the same fee as for a master or journeyman plumber
71.3license, respectively.

71.4    Sec. 30. Minnesota Statutes 2006, section 326.405, is amended to read:
71.5326.405 RECIPROCITY WITH OTHER STATES.
71.6    The commissioner of health may license without examination, upon payment of the
71.7required fee, nonresident applicants who are licensed under the laws of a state having
71.8standards for licensing plumbers which the commissioner determines are substantially
71.9equivalent to the standards of this state if the other state grants similar privileges to
71.10Minnesota residents duly licensed in this state. The commissioner may issue a temporary
71.11license without examination, upon payment of the required fee, nonresident applicants
71.12who are licensed under the laws of a state having standards for licensing which the
71.13commissioner determines are substantially equivalent to the standards of this state if
71.14the other state grants similar privileges to Minnesota residents duly licensed in this
71.15state. Applicants who receive a temporary license under this section may acquire an
71.16aggregate of 24 months of experience before they have to apply and pass the licensing
71.17examination. Applicants must register with the commissioner of labor and industry and
71.18the commissioner shall set a fee for a temporary license. Applicants have five years in
71.19which to comply with this section.

71.20    Sec. 31. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:
71.21    Subdivision 1. Application. Applications for plumber's license shall be made to the
71.22state commissioner of health labor and industry, with fee. Unless the applicant is entitled
71.23to a renewal, the applicant shall be licensed by the state commissioner of health labor and
71.24industry only after passing a satisfactory examination administered by the examiners
71.25commissioner of labor and industry, based upon rules adopted by the Plumbing Board
71.26showing fitness. Examination fees for both journeyman and master plumbers shall be in
71.27an amount prescribed by the state commissioner of health labor and industry pursuant to
71.28section 144.122. Upon being notified that of having successfully passed the examination
71.29for original license the applicant shall submit an application, with the license fee herein
71.30provided. License fees shall be in an amount prescribed by the state commissioner of
71.31health labor and industry pursuant to section 144.122. Licenses shall expire and be
71.32renewed as prescribed by the commissioner pursuant to section 144.122.

71.33    Sec. 32. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:
72.1    Subd. 2. Regulatory authority; tough person contests. All tough person contests,
72.2including amateur tough person contests, are subject to this chapter. All tough person
72.3contests are subject to American Boxing Commission (ABC) rules. Every contestant
72.4in a tough person contest shall have a physical examination prior to their bouts. Every
72.5contestant in a tough person contest shall wear padded gloves that weigh at least 12
72.6ounces. All tough person bouts are limited to two-minute rounds and a maximum of four
72.7total rounds. Officials at tough person bouts shall be licensed under this chapter.

72.8    Sec. 33. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision
72.9to read:
72.10    Subd. 3. Regulatory authority; similar sporting events. All mixed martial arts,
72.11ultimate fight contests, and similar sporting events are subject to this chapter.

72.12    Sec. 34. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:
72.13    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in
72.14the year of its issuance issued after the effective date of this act is valid for one year from
72.15the date it is issued and may be renewed by filing an application for renewal with the
72.16commission and payment of the license fee. An application for a license and renewal of a
72.17license must be on a form provided by the commission. There is a 30-day grace period
72.18during which a license may be renewed if a late filing penalty fee equal to the license fee
72.19is submitted with the regular license fee. A licensee that files late shall not conduct any
72.20activity regulated by this chapter until the commission has renewed the license. If the
72.21licensee fails to apply to the commission within the 30-day grace period, the licensee must
72.22apply for a new license under subdivision 1.

72.23    Sec. 35. Minnesota Statutes 2006, section 341.321, is amended to read:
72.24341.321 FEE SCHEDULE.
72.25    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission
72.26is as follows:
72.27    (1) referees, $35 $45 for each initial license and each renewal;
72.28    (2) promoters, $400 for each initial license and each renewal;
72.29    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
72.30    (4) trainers, $35 $45 for each initial license and each renewal;
72.31    (5) ring announcers, $25 $45 for each initial license and each renewal;
72.32    (6) boxers' seconds, $25 $45 for each initial license and each renewal;
72.33    (7) timekeepers, $25 $45 for each initial license and each renewal; and
73.1    (8) boxers, $35 $45 for each initial license and each renewal.;
73.2    (9) managers, $45 for each initial license and each renewal; and
73.3    (10) ringside physicians, $45 for each initial license and each renewal.
73.4    (b) The commission shall establish and assess an event fee for each sporting event.
73.5The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as
73.6determined by the commission when the sporting event is scheduled.
73.7    (c) All fees collected by the Minnesota Boxing Commission must be deposited in
73.8the Boxing Commission account in the special revenue fund.

73.9    Sec. 36. Minnesota Statutes 2006, section 541.051, is amended to read:
73.10541.051 LIMITATION OF ACTION FOR DAMAGES BASED ON SERVICES
73.11OR CONSTRUCTION TO IMPROVE REAL PROPERTY.
73.12    Subdivision 1. Limitation; service or construction of real property;
73.13improvements. (a) Except where fraud is involved, no action by any person in contract,
73.14tort, or otherwise to recover damages for any injury to property, real or personal, or for
73.15bodily injury or wrongful death, arising out of the defective and unsafe condition of an
73.16improvement to real property, nor any action for contribution or indemnity for damages
73.17sustained on account of the injury, shall be brought against any person performing or
73.18furnishing the design, planning, supervision, materials, or observation of construction
73.19or construction of the improvement to real property or against the owner of the real
73.20property more than two years after discovery of the injury or, in the case of an action for
73.21contribution or indemnity, accrual of the cause of action, nor, in any event shall such a
73.22cause of action accrue more than ten years after substantial completion of the construction.
73.23Date of substantial completion shall be determined by the date when construction is
73.24sufficiently completed so that the owner or the owner's representative can occupy or use
73.25the improvement for the intended purpose.
73.26    (b) Notwithstanding paragraph (a), an action for contribution or indemnity arising
73.27out of the defective and unsafe condition of an improvement to real property may be
73.28brought no later than two years after the cause of action for contribution or indemnity has
73.29accrued, regardless of whether it accrued before or after the ten-year period referenced in
73.30paragraph (a).
73.31    (c) For purposes of paragraph (a), a cause of action accrues upon discovery of the
73.32injury or, in the case of an action for contribution or indemnity under paragraph (b),
73.33upon payment of a final judgment, arbitration award, or settlement arising out of the
73.34defective and unsafe condition.
74.1    (c) (d) Nothing in this section shall apply to actions for damages resulting from
74.2negligence in the maintenance, operation or inspection of the real property improvement
74.3against the owner or other person in possession.
74.4    (d) (e) The limitations prescribed in this section do not apply to the manufacturer or
74.5supplier of any equipment or machinery installed upon real property.
74.6    Subd. 2. Action allowed; limitation. Notwithstanding the provisions of subdivision
74.71, paragraph (a), in the case of an a cause of action which accrues during the ninth or tenth
74.8year after substantial completion of the construction, an action to recover damages may be
74.9brought within two years after the date on which the cause of action accrued, but in no
74.10event may such an action be brought more than 12 years after substantial completion of
74.11the construction. Nothing in this subdivision shall limit the time for bringing an action for
74.12contribution or indemnity.
74.13    Subd. 3. Not construed. Nothing in this section shall be construed as extending the
74.14period prescribed by the laws of this state for the bringing of any action.
74.15    Subd. 4. Applicability. For the purposes of actions based on breach of the statutory
74.16warranties set forth in section 327A.02, or to actions based on breach of an express written
74.17warranty, such actions shall be brought within two years of the discovery of the breach. In
74.18the case of an action under section 327A.05, which accrues during the ninth or tenth year
74.19after the warranty date, as defined in section 327A.01, subdivision 8, an action may be
74.20brought within two years of the discovery of the breach, but in no event may an action
74.21under section 327A.05 be brought more than 12 years after the effective warranty date. An
74.22action for contribution or indemnity related to actions described in this subdivision may be
74.23brought no later than two years after the cause of action for contribution or indemnity has
74.24accrued, based upon the time of accrual provided in subdivision 1, paragraph (c).
74.25EFFECTIVE DATE.This section is effective the day following final enactment
74.26and applies to all actions pending on or commenced on or after that date.

74.27    Sec. 37. REPEALER.
74.28Minnesota Statutes 2006, sections 176.042; 268.035, subdivision 9; and 326.45, are
74.29repealed.
74.30EFFECTIVE DATE.Sections 176.042 and 286.035, subdivision 9, are repealed
74.31effective January 1, 2009.

75.1ARTICLE 5
75.2HIGH PRESSURE PIPING

75.3    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:
75.4326.46 SUPERVISION OF HIGH PRESSURE PIPING.
75.5    The Department of Labor and Industry shall supervise all high pressure piping
75.6used on all projects in this state, and may prescribe minimum standards which shall be
75.7uniform under rules adopted by the board.
75.8    The department shall employ inspectors and other assistants to carry out the
75.9provisions of sections 326.46 to 326.52.

75.10    Sec. 2. Minnesota Statutes 2006, section 326.461, is amended by adding a subdivision
75.11to read:
75.12    Subd. 1a. Board. "Board" means the Board of High Pressure Piping Systems.

75.13    Sec. 3. Minnesota Statutes 2006, section 326.47, subdivision 2, is amended to read:
75.14    Subd. 2. Permissive municipal regulation. A municipality may, by ordinance,
75.15provide for the inspection of high pressure piping system materials and construction, and
75.16provide that it shall not be constructed or installed except in accordance with minimum
75.17state standards. The authority designated by the ordinance for issuing high pressure piping
75.18permits and assuring compliance with state standards must report to the Department of
75.19Labor and Industry all violations of state high pressure piping standards.
75.20    A municipality may not adopt an ordinance with high pressure piping standards that
75.21does not conform to the uniform standards prescribed by the Department of Labor and
75.22Industry board. The Department of Labor and Industry board shall specify by rule the
75.23minimum qualifications for municipal inspectors.

75.24    Sec. 4. Minnesota Statutes 2006, section 326.47, subdivision 6, is amended to read:
75.25    Subd. 6. Filing and inspection fees. The Department of Labor and Industry
75.26must charge a filing fee set by the commissioner board under section 16A.1285 for all
75.27applications for permits to construct or install high pressure piping systems. The fee for
75.28inspection of high pressure piping system construction or installation shall be set by the
75.29commissioner board under section 16A.1285. This subdivision does not apply where a
75.30permit is issued by a municipality complying with subdivision 2.

75.31    Sec. 5. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.
76.1    Subdivision 1. Composition. (a) The Board of High Pressure Piping Systems shall
76.2consist of 12 members who must be residents of the state, appointed by the governor, and
76.3confirmed by the senate. The commissioner of the Department of Labor and Industry or
76.4the commissioner's designee shall be a voting member. The first appointed board members
76.5shall serve an initial term of four years, except where designated otherwise. The governor
76.6shall then reappoint the current members or appoint replacement members, all or in part, to
76.7subsequent three-year terms. Midterm vacancies shall be filled for the remaining portion
76.8of the term. Vacancies occurring with less than six months time remaining in the term
76.9shall be filled for the existing term and the following three-year term. Of the 11 appointed
76.10members, the composition shall be as follows:
76.11    (1) one member shall be a high pressure piping inspector;
76.12    (2) one member shall be a licensed mechanical engineer;
76.13    (3) one member shall be a representative of the piping industry;
76.14    (4) four members shall be high pressure piping contractors or their representatives,
76.15engaged in the scope of high pressure piping, two from the metro area and two from
76.16greater Minnesota;
76.17    (5) two members shall be high pressure piping journeypersons engaged in the scope
76.18of high pressure piping systems installation, one from the metro area and one from greater
76.19Minnesota; and
76.20    (6) two members shall be representatives from utility companies in Minnesota
76.21who shall serve an initial term of two years.
76.22    (b) Except for the licensed mechanical engineer and the members from utilities
76.23companies, all persons appointed to the board must possess a current license or
76.24competency credential required for contractors and persons engaged in the design,
76.25installation, alteration, and inspection of high pressure piping systems.
76.26    Subd. 2. Powers. (a) The board shall have the power to:
76.27    (1) elect its chair;
76.28    (2) specify the high pressure piping code that must be followed in Minnesota;
76.29    (3) maintain an appeals committee to make determinations regarding any complaints,
76.30code amendments, code compliance, and code clarifications filed with the board;
76.31    (4) adopt rules necessary for the regulation and licensing of contractors,
76.32journeypersons, trainees, and persons engaged in the design, installation, alteration, and
76.33inspection of high pressure piping systems, except for persons licensed under sections
76.34326.02 to 326.15;
76.35    (5) adopt rules necessary for continuing education for individuals regulated and
76.36licensed under this section; and
77.1    (6) pay expenses deemed necessary in the performance of board duties, including:
77.2    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18,
77.3subdivision 2; and
77.4    (ii) per diem and expenses for its members as provided in section 15.0575,
77.5subdivision 3.
77.6    (b) Complaints filed under this section may originate with high pressure piping
77.7inspectors, contractors, or their employees, or other persons engaged in the design,
77.8installation, and alteration of a high pressure piping system. The board shall make their
77.9findings known to all parties and the commissioner of the Department of Labor and
77.10Industry within the time period specified by the board.
77.11    Subd. 3. Fee and finances. The board shall submit an annual budget to the
77.12commissioner of the Department of Labor and Industry. The commissioner shall collect
77.13fees under section 326.47, subdivision 6, necessary for the operation and continuance of
77.14the board. The commissioner is responsible for the enforcement of the codes and licensing
77.15requirements determined by the board. The board shall recommend the fees for licenses
77.16and certification under this section and for all high pressure piping system permits and
77.17submit the fee structure to the commissioner of labor and industry. The commissioner
77.18of finance shall make a quarterly certification of the amount necessary to pay expenses
77.19required for operation of the board under subdivision 2, paragraph (a), clause (6). The
77.20certified amount is appropriated in fiscal years 2008 and 2009 to the board for those
77.21purposes from the fees collected under section 326.50.

77.22    Sec. 6. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:
77.23    Subdivision 1. License required; rules; time credit. No person shall engage in
77.24or work at the business of a contracting pipefitter unless issued an individual contracting
77.25pipefitter license to do so by the Department of Labor and Industry under rules prescribed
77.26by the board. No license shall be required for repairs on existing installations. No
77.27person shall engage in or work at the business of journeyman pipefitter unless issued an
77.28individual journeyman pipefitter competency license to do so by the Department of Labor
77.29and Industry under rules prescribed by the board. A person possessing an individual
77.30contracting pipefitter competency license may also work as a journeyman pipefitter.
77.31    No person, partnership, firm, or corporation shall install high pressure piping, nor
77.32install high pressure piping in connection with the dealing in and selling of high pressure
77.33pipe material and supplies, unless, at all times, a person possessing a contracting pipefitter
77.34individual competency license or a journeyman pipefitter individual competency license is
78.1responsible for the high pressure pipefitting work conducted by the person, partnership,
78.2firm, or corporation being in conformity with Minnesota Statutes and Minnesota Rules.
78.3    The Department of Labor and Industry board shall prescribe rules, not inconsistent
78.4herewith, for the examination and individual competency licensing of contracting
78.5pipefitters and journeyman pipefitters and for issuance of permits by the department and
78.6municipalities for the installation of high pressure piping.
78.7    An employee performing the duties of inspector for the Department of Labor and
78.8Industry in regulating pipefitting shall not receive time credit for the inspection duties
78.9when making an application for a license required by this section.

78.10    Sec. 7. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:
78.11    Subd. 2. High pressure pipefitting business license. Before obtaining a permit
78.12for high pressure piping work, a person, partnership, firm, or corporation must obtain or
78.13utilize a business with a high pressure piping business license.
78.14    A person, partnership, firm, or corporation must have at all times as a full-time
78.15employee at least one individual holding an individual contracting pipefitter competency
78.16license. Only full-time employees who hold individual contracting pipefitter licenses
78.17are authorized to obtain high pressure piping permits in the name of the business. The
78.18individual contracting pipefitter competency license holder can be the employee of only
78.19one high pressure piping business at a time.
78.20    To retain its business license without reapplication, a person, partnership, firm, or
78.21corporation holding a high pressure piping business license that ceases to employ a person
78.22holding an individual contracting pipefitter competency license shall have 60 days from
78.23the last day of employment of its previous individual contracting pipefitter competency
78.24license holder to employ another license holder. The Department of Labor and Industry
78.25must be notified no later than five days after the last day of employment of the previous
78.26license holder.
78.27    No high pressure pipefitting work may be performed during any period when the
78.28high pressure pipefitting business does not have an individual contracting pipefitter
78.29competency license holder on staff. If a license holder is not employed within 60 days,
78.30the pipefitting business license shall lapse.
78.31    The Department of Labor and Industry board shall prescribe by rule procedures for
78.32application for and issuance of business licenses and fees.

78.33    Sec. 8. Minnesota Statutes 2006, section 326.48, is amended by adding a subdivision
78.34to read:
79.1    Subd. 6. Reciprocity with other states. The commissioner may issue a temporary
79.2license without examination, upon payment of the required fee, nonresident applicants
79.3who are licensed under the laws of a state having standards for licensing which the
79.4commissioner determines are substantially equivalent to the standards of this state if
79.5the other state grants similar privileges to Minnesota residents duly licensed in this
79.6state. Applicants who receive a temporary license under this section may acquire an
79.7aggregate of 24 months of experience before they have to apply and pass the licensing
79.8examination. Applicants must register with the commissioner of labor and industry and
79.9the commissioner shall set a fee for a temporary license. Applicants have five years in
79.10which to comply with this section.

79.11    Sec. 9. Minnesota Statutes 2006, section 326.50, is amended to read:
79.12326.50 APPLICATION; FEES.
79.13    Application for an individual contracting pipefitter competency or an individual
79.14journeyman pipefitter competency license shall be made to the Department of Labor and
79.15Industry, with fees. The applicant shall be licensed only after passing an examination
79.16administered by the Department of Labor and Industry in accordance with rules adopted
79.17by the board.

79.18    Sec. 10. Minnesota Statutes 2006, section 326.51, is amended to read:
79.19326.51 DEPARTMENT MAY REVOKE LICENSES.
79.20    The department board may revoke or suspend, for cause, any license obtained
79.21through error or fraud, or if the licensee is shown to be incompetent, or for a violation
79.22of any of its rules and regulations applicable to high pressure pipefitting work. The
79.23licensee shall have notice, in writing, enumerating the charges, and be entitled to a hearing
79.24on at least ten days' notice, with the right to produce testimony. The hearing shall be
79.25held pursuant to chapter 14. The commissioner board shall issue a final order based on
79.26testimony and the record at hearing. One year from the date of revocation application
79.27may be made for a new license.

79.28    Sec. 11. Minnesota Statutes 2006, section 326.52, is amended to read:
79.29326.52 DEPOSIT OF FEES.
79.30    All fees received under sections 326.46 to 326.52 shall be deposited by the
79.31Department of Labor and Industry to the credit of the general fund in the state treasury.
79.32The salaries and per diem of the inspectors and examiners hereinbefore provided, their
80.1expenses, and all incidental expenses of the department and board in carrying out the
80.2provisions of sections 326.46 to 326.52 shall be paid from the appropriations made to the
80.3Department of Labor and Industry. The commissioner board by rule shall set the amount
80.4of the fees at a level that approximates, to the greatest extent possible, the salaries, per
80.5diem, and incidental expenses of the department.

80.6    Sec. 12. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING
80.7SYSTEMS.
80.8    The authority of the commissioner of labor and industry to adopt rules relating to
80.9high pressure piping systems is transferred to the Board of High Pressure Piping Systems.
80.10Licenses and permits currently in effect remain in effect according to their terms unless
80.11affected by board action. Rules adopted by the commissioner of labor and industry remain
80.12in effect until amended or repealed by the board. The commissioner of administration
80.13may not use the authority under Minnesota Statutes, section 16B.37, to modify transfers of
80.14authority in this act.

80.15    Sec. 13. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH
80.16PRESSURE PIPING SYSTEMS.
80.17    The governor must complete the appointments required by Minnesota Statutes,
80.18section 326.471, no later than July 1, 2007. The commissioner of labor and industry
80.19shall convene the first meeting of the Board of High Pressure Piping Systems no later
80.20than September 1, 2007.

80.21ARTICLE 6
80.22IRON RANGE RESOURCES AND REHABILITATION BOARD

80.23    Section 1. [270.99] HOCKEY HERITAGE SURCHARGE.
80.24    Subdivision 1. Imposition. A surcharge of 25 cents is imposed on the sale of every
80.25ticket to an NCAA Division I men's hockey event in the state.
80.26    Subd. 2. Collection; remittance. The surcharge imposed in this section shall be
80.27collected by all sellers of these tickets with nexus in the state of Minnesota. The seller
80.28shall report the surcharge on a return proscribed by the commissioner of revenue and
80.29shall remit the surcharge with the return.
80.30    Subd. 3. Administration. Unless specifically provided otherwise in this section, the
80.31audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and
80.32administrative provisions in this chapter and chapter 289A that are applicable to taxes
80.33imposed under chapter 297A apply to the surcharge imposed under this section.
81.1    Subd. 4. Deposit of revenues. The commissioner of revenue shall deposit all
81.2revenues, including penalty and interest, derived from the surcharge imposed in this
81.3section in the hockey surcharge account in the special revenue fund. The amount deposited
81.4under this section is appropriated to the Iron Range Resources and Rehabilitation Board
81.5for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame
81.6Museum provided that it continues to operate in the city. Payments under this section for
81.7the Hockey Hall of Fame Museum are in addition to and must not be used to supplant
81.8funding under section 298.28, subdivision 9c.

81.9    Sec. 2. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:
81.10    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby
81.11created the Iron Range Resources and Rehabilitation Board, consisting of 13 ten members,
81.12five of whom are state senators appointed by the Subcommittee on Committees of the
81.13Rules Committee of the senate, and five of whom are representatives, appointed by the
81.14speaker of the house of representatives. The remaining members shall be appointed one
81.15each by the senate majority leader, the speaker of the house of representatives, and the
81.16governor and must be nonlegislators who reside in a taconite assistance area as defined in
81.17section 273.1341. The members shall be appointed in January of every odd-numbered
81.18year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and
81.19shall serve until January of the next odd-numbered year. Vacancies on the board shall be
81.20filled in the same manner as the original members were chosen. At least a majority of
81.21the legislative members of the board shall be elected from state senatorial or legislative
81.22districts in which over 50 percent of the residents reside within a taconite assistance area
81.23as defined in section 273.1341. All expenditures and projects made by the commissioner
81.24of Iron Range resources and rehabilitation shall be consistent with the priorities
81.25established in subdivision 8 and shall first be submitted to the Iron Range Resources and
81.26Rehabilitation Board for approval by a majority of the board of expenditures and projects
81.27for rehabilitation purposes as provided by this section, and the method, manner, and time
81.28of payment of all funds proposed to be disbursed shall be first approved or disapproved by
81.29the board. The board shall biennially make its report to the governor and the legislature on
81.30or before November 15 of each even-numbered year. The expenses of the board shall be
81.31paid by the state from the funds raised pursuant to this section.

81.32    Sec. 3. Minnesota Statutes 2006, section 298.227, is amended to read:
81.33298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
82.1    An amount equal to that distributed pursuant to each taconite producer's taxable
82.2production and qualifying sales under section 298.28, subdivision 9a, shall be held by
82.3the Iron Range Resources and Rehabilitation Board in a separate taconite economic
82.4development fund for each taconite and direct reduced ore producer. Money from the
82.5fund for each producer shall be released by the commissioner after review by a joint
82.6committee consisting of an equal number of representatives of the salaried employees and
82.7the nonsalaried production and maintenance employees of that producer. The District 11
82.8director of the United States Steelworkers of America, on advice of each local employee
82.9president, shall select the employee members. In nonorganized operations, the employee
82.10committee shall be elected by the nonsalaried production and maintenance employees.
82.11The review must be completed no later than six months after the producer presents a
82.12proposal for expenditure of the funds to the committee. The funds held pursuant to this
82.13section may be released only for acquisition of plant and stationary mining equipment
82.14and facilities for the producer or for research and development in Minnesota on new
82.15mining, or taconite, iron, or steel production technology, but only if the producer provides
82.16a matching expenditure to be used for the same purpose of at least 50 percent of the
82.17distribution based on 14.7 cents per ton beginning with distributions in 2002. Effective for
82.18proposals for expenditures of money from the fund approved beginning the day following
82.19final enactment, the commissioner may release the funds only if the proposed expenditure
82.20is approved by a majority of the members of the Iron Range Resources and Rehabilitation
82.21Board. If a producer uses money which has been released from the fund prior to the day
82.22following final enactment to procure haulage trucks, mobile equipment, or mining shovels,
82.23and the producer removes the piece of equipment from the taconite tax relief area defined
82.24in section 273.134 within ten years from the date of receipt of the money from the fund,
82.25a portion of the money granted from the fund must be repaid to the taconite economic
82.26development fund. The portion of the money to be repaid is 100 percent of the grant if the
82.27equipment is removed from the taconite tax relief area within 12 months after receipt of
82.28the money from the fund, declining by ten percent for each of the subsequent nine years
82.29during which the equipment remains within the taconite tax relief area. If a taconite
82.30production facility is sold after operations at the facility had ceased, any money remaining
82.31in the fund for the former producer may be released to the purchaser of the facility on
82.32the terms otherwise applicable to the former producer under this section. If a producer
82.33fails to provide matching funds for a proposed expenditure within six months after the
82.34commissioner approves release of the funds, the funds are available for release to another
82.35producer in proportion to the distribution provided and under the conditions of this section.
82.36Any portion of the fund which is not released by the commissioner within two years of its
83.1deposit in the fund shall be divided between the taconite environmental protection fund
83.2created in section 298.223 and the Douglas J. Johnson economic protection trust fund
83.3created in section 298.292 for placement in their respective special accounts. Two-thirds
83.4of the unreleased funds shall be distributed to the taconite environmental protection fund
83.5and one-third to the Douglas J. Johnson economic protection trust fund.
83.6EFFECTIVE DATE.This section is effective for proposals for expenditures of
83.7money from the fund the day following final enactment.

83.8    Sec. 4. APPROPRIATION; IRON RANGE RESOURCES AND
83.9REHABILITATION BOARD.
83.10    $500,000 is appropriated from the Iron Range Resources and Rehabilitation Board
83.11fund for fiscal year 2008 for allocation in this section:
83.12    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other
83.13infrastructure to a peat project in Spencer Township in Aitkin County;
83.14    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham
83.15Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent
83.16endowment for the preservation;
83.17    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the
83.18organization to employ youth for the construction of community centers; and
83.19    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field
83.20construction.
83.21    These are onetime appropriations.

83.22    Sec. 5. IRRRB BUILDING.
83.23    The Iron Range Resources and Rehabilitation Board office building in Eveleth,
83.24Minnesota is designated and named the Joe Begich Building and shall be signed as such
83.25at every entrance.

83.26ARTICLE 7
83.27ELECTRICAL

83.28    Section 1. Minnesota Statutes 2006, section 326.01, subdivision 6g, is amended to read:
83.29    Subd. 6g. Personal direct supervision. The term "personal "Direct supervision"
83.30means that a person licensed to perform electrical work oversees and directs the electrical
83.31work performed by an unlicensed person such that:
84.1    (1) the licensed person actually reviews the electrical work performed by the
84.2unlicensed person an unlicensed individual is being supervised by an individual licensed
84.3to perform the electrical work being supervised;
84.4    (2) during the entire working day of the unlicensed individual, the licensed
84.5individual is physically present at the location where the unlicensed individual is
84.6preforming electrical work and immediately available to the unlicensed individual;
84.7    (3) the licensed person individual is physically present and immediately available to
84.8the unlicensed person individual at all times for assistance and direction; and
84.9    (4) electronic supervision does not meet the requirement of physically present and
84.10immediately available;
84.11    (5) the licensed individual shall review the electrical work performed by the
84.12unlicensed individual before the electrical work is operated; and
84.13    (3) (6) the licensed person individual is able to and does determine that all electrical
84.14work performed by the unlicensed person individual is performed in compliance with
84.15section 326.243.
84.16    The licensed person individual is responsible for the compliance with section
84.17326.243 of all electrical work performed by the unlicensed person individual.

84.18    Sec. 2. Minnesota Statutes 2006, section 326.241, subdivision 1, is amended to read:
84.19    Subdivision 1. Composition. (a) The Board of Electricity shall consist of 11 12
84.20members, residents of the state, appointed by the governor of whom and confirmed by
84.21the senate. The commissioner of labor and industry or the commissioner's designee shall
84.22be a nonvoting member. The first appointed board members shall serve an initial term
84.23of four years, except where designated otherwise. The governor shall then reappoint the
84.24current members or appoint replacement members, all or in part, to subsequent three-year
84.25terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies
84.26occurring with less than six months time remaining in the term shall be filled for the
84.27existing term and the following three-year term. Of the 11 appointed members, the
84.28composition shall be as follows:
84.29    (1) two shall be representatives of the electrical suppliers in the rural areas of the
84.30state,
84.31    (2) two shall be master electricians, who shall be contractors,
84.32    (3) two journeyman electricians,
84.33    (4) one registered consulting electrical engineer,
84.34    (5) two power limited technicians, who shall be technology system contractors
84.35primarily engaged in the business of installing technology circuits or systems, and
85.1    (6) two public members as defined by section 214.02.
85.2    (b) Except as provided herein, membership terms, compensation of members,
85.3removal of members, the filling of membership vacancies, and fiscal year and reporting
85.4requirements shall be as provided in sections 214.07 to 214.09. The provision of staff,
85.5administrative services and office space; the review and processing of complaints; the
85.6setting of board fees; and other provisions relating to board operations shall be as provided
85.7in chapter 214.

85.8    Sec. 3. Minnesota Statutes 2006, section 326.241, subdivision 2, is amended to read:
85.9    Subd. 2. Powers. (a) The board, or the complaint committee on behalf of the board
85.10where authorized by law, shall have power to:
85.11    (1) Elect its own officers.
85.12    (2) Engage and fix the compensation of inspectors, and hire employees. The salary
85.13of the executive secretary shall be established pursuant to chapter 43A. All agents and
85.14employees other than contract inspectors shall be in the classified service and shall be
85.15compensated pursuant to chapter 43A. All inspectors shall hold licenses as master or
85.16journeyman electricians under section 326.242, subdivision 1(1) or 2(1), and shall give
85.17bond in an amount fixed by the board, conditioned upon the faithful performance of
85.18their duties.
85.19    (3) (2) Pay such other expenses as it may deem necessary in the performance of its
85.20duties, including rent, supplies, and such like.
85.21    (3) Select from its members individuals to serve on any other state advisory councils,
85.22boards, or committees.
85.23    (4) Enforce the provisions of sections 326.241 to 326.248, and provide, upon
85.24request, such additional voluntary inspections and reviews as it may deem appropriate.
85.25    (5) Issue, renew, refuse to renew, suspend, temporarily suspend, and revoke licenses,
85.26censure licensees, assess civil penalties, issue cease and desist orders, and seek injunctive
85.27relief and civil penalties in court as authorized by section 326.242 and other provisions of
85.28Minnesota law. Establish the committees required herein and any others deemed necessary
85.29by the board or requested by the commissioner.
85.30    (6) Adopt reasonable rules to carry out its duties under sections 326.241 to 326.248
85.31and to provide for the amount and collection of fees for inspection and other services. All
85.32rules shall be adopted in accordance with chapter 14.
85.33    (7) Advise the commissioner on issues related to sections 326.241 to 326.248 or as
85.34requested by the commissioner.
86.1    (b) Except for the powers granted to the Electricity Board the commissioner of labor
86.2and industry shall administer the provisions of sections 326.241 to 326.248 and for such
86.3purposes may employ electrical inspectors and other assistants.

86.4    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 3d, is amended to read:
86.5    Subd. 3d. Power limited technician. (a) Except as otherwise provided by law, no
86.6person shall install, alter, repair, plan, lay out, or supervise the installing, altering, or
86.7repairing of electrical wiring, apparatus, or equipment for technology circuits or systems
86.8unless:
86.9    (1) the person is licensed by the board as a power limited technician; and
86.10    (2) the electrical work is:
86.11    (i) for a licensed contractor and the person is an employee, partner, or officer of,
86.12or is the licensed contractor; or
86.13    (ii) performed under the supervision of a master electrician or power limited
86.14technician also employed by the person's employer on technology circuits, systems,
86.15apparatus, equipment, or facilities owned or leased by the employer that are located within
86.16the limits of property owned or leased, operated, and maintained by the employer.
86.17    (b) An applicant for a power limited technician's license shall (1) be a graduate of a
86.18four-year electrical course in an accredited college or university; or (2) have had at least 36
86.19months' experience, acceptable to the board, in planning for, laying out, supervising, and
86.20installing wiring, apparatus, or equipment for power limited systems, provided however,
86.21that the board may by rule provide for the allowance of up to 12 months (2,000 hours)
86.22of experience credit for successful completion of a two-year post high school electrical
86.23course or other technical training approved by the board.
86.24    (c) The board may initially set experience requirements without rulemaking, but
86.25must adopt rules before July 1, 2004.
86.26    (d) Licensees must attain eight hours of continuing education acceptable to the
86.27board every renewal period.
86.28    (e) A person who has submitted an application by June 30, 2003, to take the alarm
86.29and communications examination administered by the board, and who has achieved a
86.30minimal score of 70 percent on the examination by September 30, 2003, may obtain a
86.31power limited technician license without further examination by submitting an application
86.32and a license fee of $30.
86.33    (f) A company holding an alarm and communication license as of June 30, 2003,
86.34may designate one person who may obtain a power limited technician license without
87.1passing an examination administered by the board by submitting an application and
87.2license fee of $30.
87.3    (g) A person who has submitted an application by September 30, 2005 December
87.431, 2007, to take the power limited technician examination administered by the board
87.5department is not required to meet the qualifications set forth in paragraph (b).
87.6EFFECTIVE DATE.This section is effective the day following final enactment.

87.7    Sec. 5. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:
87.8    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual
87.9means an individual who has not been licensed by the Board of Electricity as a Class A
87.10master electrician or as a Class A journeyman electrician. An unlicensed individual shall
87.11not perform electrical work required to be performed by a licensed individual unless the
87.12individual has first registered with the Board of Electricity as an unlicensed individual.
87.13Thereafter, an unlicensed individual shall not perform electrical work required to be
87.14performed by a licensed individual unless the work is performed under the personal direct
87.15supervision of a person an individual actually licensed to perform such work and. The
87.16licensed electrician individual and unlicensed persons are individual must be employed
87.17by the same employer. Licensed persons individuals shall not permit unlicensed persons
87.18individuals to perform electrical work except under the personal direct supervision of
87.19a person an individual actually licensed to perform such work. Unlicensed persons
87.20individuals shall not supervise the performance of electrical work or make assignments
87.21of electrical work to unlicensed persons individuals. Except for technology circuit or
87.22system work, licensed persons individuals shall supervise no more than two unlicensed
87.23persons individuals. For technology circuit or system work, licensed persons individuals
87.24shall supervise no more than three unlicensed persons individuals.
87.25    (b) Notwithstanding any other provision of this section, no person individual other
87.26than a master electrician or power limited technician shall plan or lay out electrical wiring,
87.27apparatus, or equipment for light, heat, power, or other purposes, except circuits or
87.28systems exempted from personal licensing by subdivision 12, paragraph (b).
87.29    (c) Contractors employing unlicensed persons performing individuals to perform
87.30electrical work shall maintain records establishing compliance with this subdivision,
87.31which that shall designate identify all unlicensed persons individuals performing electrical
87.32work, except for persons working on circuits or systems exempted from personal licensing
87.33by subdivision 12, paragraph (b), and shall permit the board to examine and copy all such
87.34records as provided for in section 326.244, subdivision 6.
88.1    (d) When a licensed individual supervises the electrical work of an unlicensed
88.2individual, the licensed individual is responsible for ensuring that the electrical work
88.3complies with sections 326.241 to 326.248 and rules adopted.

88.4    Sec. 6. Minnesota Statutes 2006, section 326.242, is amended by adding a subdivision
88.5to read:
88.6    Subd. 5a. Registration of unlicensed individuals. Unlicensed individuals
88.7performing electrical work for a contractor or employer shall register with the department
88.8in the manner prescribed by the commissioner. Experience credit for electrical work
88.9performed after January 1, 2008, by an applicant for a license identified in this section
88.10shall not be granted where the applicant has not registered with or is not licensed by
88.11the department.

88.12    Sec. 7. Minnesota Statutes 2006, section 326.242, subdivision 11, is amended to read:
88.13    Subd. 11. Reciprocity. To the extent that any other state which provides for the
88.14licensing of electricians provides for similar action the board may grant licenses, without
88.15examination, of the same grade and class to an electrician who has been licensed by such
88.16other state for at least one year, upon payment by the applicant of the required fee and
88.17upon the board being furnished with proof that the required fee and upon the board being
88.18furnished with proof that the qualifications of the applicant are equal to the qualifications
88.19of holders of similar licenses in Minnesota. The commissioner may enter into reciprocity
88.20agreements for personal licenses with another state if approved by the board. Once
88.21approved by the board, the commissioner may issue a personal license without requiring
88.22the applicant to pass an examination provided the applicant:
88.23    (a) submits an application under section 326.242;
88.24    (b) pays the fee required under section 326.242; and
88.25    (c) holds a valid comparable license in the state participating in the agreement.
88.26    Agreements are subject to the following:
88.27    (1) The parties to the agreement must administer a statewide licensing program that
88.28includes examination and qualifying experience or training comparable to Minnesota's.
88.29    (2) The experience and training requirements under which an individual applicant
88.30qualified for examination in the qualifying state must be deemed equal to or greater than
88.31required for an applicant making application in Minnesota at the time the applicant
88.32acquired the license in the qualifying state.
88.33    (3) The applicant must have acquired the license in the qualifying state through an
88.34examination deemed equivalent to the same class of license examination in Minnesota.
89.1A lesser class of license may be granted where the applicant has acquired a greater
89.2class of license in the qualifying state and the applicant otherwise meets the conditions
89.3of this subdivision.
89.4    (4) At the time of application, the applicant must hold a valid license in the
89.5qualifying state and have held the license continuously for at least one year before making
89.6application in Minnesota.
89.7    (5) An applicant is not eligible for a license under this subdivision if the applicant
89.8has failed the same or greater class of license examination in Minnesota, or if the
89.9applicant's license of the same or greater class has been revoked or suspended.
89.10    (6) An applicant who has failed to renew a personal license for two years or more
89.11after its expiration is not eligible for a license under this subdivision.

89.12    Sec. 8. REPEALER.
89.13Minnesota Statutes 2006, sections 326.01, subdivision 4; and 326.242, subdivision
89.144, are repealed.
89.15EFFECTIVE DATE.This section is effective the day following final enactment.

89.16ARTICLE 8
89.17APPRENTICESHIP BOARD

89.18    Section 1. Minnesota Statutes 2006, section 178.01, is amended to read:
89.19178.01 PURPOSES.
89.20    The purposes of this chapter are: to open to young people regardless of race, sex,
89.21creed, color or national origin, the opportunity to obtain training that will equip them for
89.22profitable employment and citizenship; to establish as a means to this end, a program
89.23of voluntary apprenticeship under approved apprentice agreements providing facilities
89.24for their training and guidance in the arts, skills, and crafts of industry and trade, with
89.25concurrent, supplementary instruction in related subjects; to promote employment
89.26opportunities under conditions providing adequate training and reasonable earnings;
89.27to relate the supply of skilled workers to employment demands; to establish standards
89.28for apprentice training; to establish an Apprenticeship Advisory Council Board and
89.29apprenticeship committees to assist in effectuating the purposes of this chapter; to provide
89.30for a Division of Labor Standards and Apprenticeship within the Department of Labor
89.31and Industry; to provide for reports to the legislature regarding the status of apprentice
89.32training in the state; to establish a procedure for the determination of apprentice agreement
89.33controversies; and to accomplish related ends.

90.1    Sec. 2. Minnesota Statutes 2006, section 178.02, is amended to read:
90.2178.02 APPRENTICESHIP ADVISORY COUNCIL BOARD.
90.3    Subdivision 1. Members. The commissioner of labor and industry, hereinafter
90.4called the commissioner, shall appoint an Apprenticeship Advisory Council Board,
90.5hereinafter referred to as the council board, composed of three representatives each from
90.6employer and employee organizations, and two representatives of the general public. The
90.7director of education responsible for career and technical education or designee shall be an
90.8ex officio member of the council board and shall serve in an advisory capacity only.
90.9    Subd. 2. Terms. The council board shall expire and the terms, compensation, and
90.10removal of appointed members shall be as provided in section 15.059, except that the
90.11council shall not expire before June 30, 2003.
90.12    Subd. 4. Duties. The council board shall meet at the call of the commissioner. It
90.13shall propose occupational classifications for apprenticeship programs; propose minimum
90.14standards for apprenticeship programs and agreements; and advise on the establishment
90.15of such policies, procedures, and rules as the commissioner board deems necessary in
90.16implementing the intent of this chapter.

90.17    Sec. 3. Minnesota Statutes 2006, section 178.03, subdivision 3, is amended to read:
90.18    Subd. 3. Duties and functions. The director, under the supervision of the
90.19commissioner, and with the advice and oversight of the Apprenticeship Advisory
90.20Council Board, is authorized: to administer the provisions of this chapter; to promote
90.21apprenticeship and other forms of on the job training; to establish, in cooperation and
90.22consultation with the Apprenticeship Advisory Council Board and with the apprenticeship
90.23committees, conditions and training standards for the approval of apprenticeship programs
90.24and agreements, which conditions and standards shall in no case be lower than those
90.25prescribed by this chapter; to promote equal employment opportunity in apprenticeship
90.26and other on the job training and to establish a Minnesota plan for equal employment
90.27opportunity in apprenticeship which shall be consistent with standards established
90.28under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of
90.29registration to sponsors of approved apprenticeship programs; to act as secretary of the
90.30Apprenticeship Advisory Council Board; to approve, if of the opinion that approval is
90.31for the best interest of the apprentice, any apprenticeship agreement which meets the
90.32standards established hereunder; to terminate any apprenticeship agreement in accordance
90.33with the provisions of such agreement; to keep a record of apprenticeship agreements and
90.34their disposition; to issue certificates of completion of apprenticeship; and to perform
90.35such other duties as the commissioner deems necessary to carry out the intent of this
91.1chapter; provided, that the administration and supervision of supplementary instruction in
91.2related subjects for apprentices; coordination of instruction on a concurrent basis with
91.3job experiences, and the selection and training of teachers and coordinators for such
91.4instruction shall be the function of state and local boards responsible for vocational
91.5education. The director shall have the authority to make wage determinations applicable
91.6to the graduated schedule of wages and journeyman wage rate for apprenticeship
91.7agreements, giving consideration to the existing wage rates prevailing throughout the
91.8state, except that no wage determination by the director shall alter an existing wage
91.9provision for apprentices or journeymen that is contained in a bargaining agreement in
91.10effect between an employer and an organization of employees, nor shall the director
91.11make any determination for the beginning rate for an apprentice that is below the wage
91.12minimum established by federal or state law.

91.13    Sec. 4. Minnesota Statutes 2006, section 178.041, subdivision 1, is amended to read:
91.14    Subdivision 1. Rules. The commissioner may, upon receipt of the council's board's
91.15proposals, accept, adopt, and issue them by rule with any modifications or amendments
91.16the commissioner finds appropriate. The commissioner may refer them back to the
91.17council board with recommendations for further study, consideration and revision. If
91.18the commissioner refuses to accept, adopt, and issue by rule or other appropriate action
91.19a board proposal, the commissioner must provide a written explanation of the reason
91.20for the refusal to the board within 30 days after the board submitted the proposal to the
91.21commissioner. Additional rules may be issued as the commissioner may deem necessary.

91.22ARTICLE 9
91.23MISCELLANEOUS

91.24
Section 1. SUMMARY OF APPROPRIATIONS.
91.25    The amounts shown in this section summarize direct appropriations by fund made
91.26in this article.
91.27
2008
2009
Total
91.28
General
$
51,175,000
$
47,510,000
$
98,685,000
91.29
Total
$
51,175,000
$
47,510,000
$
98,685,000

91.30
Sec. 2. MISCELLANEOUS APPROPRIATIONS.
91.31    The sums shown in the columns marked "Appropriations" are appropriated to the
91.32agencies and for the purposes specified in this article. The appropriations are from the
91.33general fund, or another named fund, and are available for the fiscal years indicated
92.1for each purpose. The figures "2008" and "2009" used in this article mean that the
92.2appropriations listed under them are available for the fiscal year ending June 30, 2008, or
92.3June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
92.4year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
92.5year ending June 30, 2007, are effective the day following final enactment.
92.6
APPROPRIATIONS
92.7
Available for the Year
92.8
Ending June 30
92.9
2008
2009

92.10
Sec. 3. EXPLORE MINNESOTA TOURISM
$
11,669,000
$
12,587,000
92.11(a) To develop maximum private sector
92.12involvement in tourism, $1,000,000 the first
92.13year and $2,000,000 the second year must
92.14be matched by Explore Minnesota Tourism
92.15from nonstate sources. Each $1 of state
92.16incentive must be matched with $3 of private
92.17sector funding. Cash match is defined as
92.18revenue to the state or documented cash
92.19expenditures directly expended to support
92.20Explore Minnesota Tourism programs. Up
92.21to one-half of the private sector contribution
92.22may be in-kind or soft match. The incentive
92.23in the first year shall be based on fiscal
92.24year 2007 private sector contributions as
92.25prescribed in Laws 2005, First Special
92.26Session chapter 1, article 3, section 6. The
92.27incentive increase in the second year will
92.28be based on fiscal year 2008 private sector
92.29contributions. This incentive is ongoing.
92.30(b) Funding for the marketing grants is
92.31available either year of the biennium.
92.32Unexpended grant funds from the first year
92.33are available in the second year.
92.34(c) Any unexpended money from the general
92.35fund appropriations made under this section
93.1does not cancel but must be placed in a
93.2special marketing account for use by Explore
93.3Minnesota Tourism for additional marketing
93.4activities.
93.5(d) $250,000 the first year and $250,000
93.6the second year are for operating costs of
93.7the Minnesota Film and TV Board. The
93.8appropriation in each year is available
93.9only upon receipt by the board of $1 in
93.10matching contributions of money or in-kind
93.11contributions from nonstate sources for every
93.12$3 provided by this appropriation.
93.13(e) $750,000 is appropriated each year for a
93.14grant to the Minnesota Film and TV Board
93.15for the film jobs production program under
93.16Minnesota Statutes, section 116U.26. Of
93.17this amount, up to $25,000 each year may
93.18be used for administration. The budget base
93.19for the film jobs production program shall be
93.20$500,000 in fiscal year 2010 and $500,000 in
93.21fiscal year 2011.
93.22(f) $150,000 the first year is for a onetime
93.23grant to St. Louis County to be used for
93.24feasibility studies and planning activities
93.25concerning additional uses for the St. Louis
93.26County Heritage and Arts Center at the
93.27Duluth depot. The studies and planning
93.28activities must include:
93.29(1) examining the costs and benefits of
93.30relocating the Northeast Minnesota Office of
93.31Tourism to the Duluth depot;
93.32(2) establishing a heritage tourism center at
93.33the Duluth depot;
93.34(3) developing a multimodal operational plan
93.35integrating railroad and bus service; and
94.1(4) identifying additional services and
94.2activities that would contribute toward
94.3returning the Duluth depot to being a
94.4working railroad station and cultural gateway
94.5to Duluth and St. Louis County.
94.6This appropriation is available until June 30,
94.72009.

94.8
94.9
Sec. 4. MINNESOTA HISTORICAL
SOCIETY
94.10
Subdivision 1.Total Appropriation
$
29,031,000
$
24,441,000
94.11The amounts that may be spent for each
94.12purpose are specified in the following
94.13subdivisions.
94.14$500,000 the first year and $500,000 the
94.15second year are for increased rent costs. This
94.16amount is added to the society's base budget.
94.17
Subd. 2.Education and Outreach
17,307,000
13,765,000
94.18(a) Of this amount, $1,700,000 the first year
94.19is a onetime appropriation for the Minnesota
94.20Sesquicentennial Commission. Of this
94.21appropriation, $750,000 is for competitive
94.22matching grants for local events and projects;
94.23$750,000 is for planning and support of
94.24statewide activities, and up to $200,000 may
94.25be used for administration.
94.26(b) The Minnesota Historical Society, the
94.27State Arts Board, and Explore Minnesota
94.28Tourism may assist the commission in
94.29designing and implementing the grants
94.30program.
94.31(c) The commission shall encourage private
94.32contributions to match the state funds to
94.33the greatest extent possible. Contributions
95.1received by the commission are appropriated
95.2to the commission.
95.3$1,500,000 the first year is for a grant-in-aid
95.4program for county and local historical
95.5societies. The Minnesota Historical Society
95.6shall establish program guidelines and
95.7grant evaluation and award criteria for the
95.8program. Each dollar of state funds awarded
95.9to a grantee must be matched with nonstate
95.10funds on a dollar-for-dollar basis by a
95.11grantee. This is a onetime appropriation and
95.12is available until expended.
95.13$500,000 the first year is for a grant-in-aid
95.14program for county and local historical
95.15societies for the repair, restoration, and
95.16preservation of historic sites and buildings
95.17in Minnesota. The Minnesota Historical
95.18Society shall establish program guidelines
95.19and grant evaluation and award criteria for
95.20the program. This is a onetime appropriation
95.21and is available until expended.
95.22(d) $60,000 each year is to offset the revenue
95.23loss from not charging fees for general tours
95.24at the Capitol. This appropriation is added to
95.25the society's base budget.
95.26(e) Notwithstanding Minnesota Statutes,
95.27section 138.668, the Minnesota Historical
95.28Society may not charge a fee for its general
95.29tours at the Capitol, but may charge fees for
95.30special programs other than general tours.
95.31
Subd. 3.Preservation and Access
10,953,000
10,271,000
95.32$500,000 the first year is to conduct a
95.33conservation survey and for restoration,
95.34treatment, moving, and storage of the 1905
95.35historic furnishings and works of art in the
96.1Minnesota State Capitol. This is a onetime
96.2appropriation and is available until June 30,
96.32009.
96.4$308,000 the first year is for the preservation
96.5of battle flags. This is a onetime appropriation
96.6and is available until June 30, 2009.
96.7
Subd. 4.Pass-Through Appropriations
771,000
405,000
96.8
(a) Minnesota International Center
43,000
43,000
96.9
(b) Minnesota Air National Guard Museum
16,000
-0-
96.10
(c) Minnesota Military Museum
234,000
234,000
96.11
(d) Farmamerica
128,000
128,000
96.12
(e) Balances Forward
96.13Any unencumbered balance remaining in
96.14this subdivision the first year does not cancel
96.15but is available for the second year of the
96.16biennium.
96.17$150,000 the first year is for a onetime
96.18grant to the Nicollet County Historical
96.19Society for renovation of the center exhibit
96.20gallery in the Treaty Site History Center
96.21in St. Peter, including additions to the
96.22center's infrastructure and state-of-the-art
96.23interpretive elements. This appropriation is
96.24available until the project is completed or
96.25abandoned, subject to Minnesota Statutes,
96.26section 16A.642.
96.27$200,000 the first year is for a grant to
96.28the Hmong Studies Center at Concordia
96.29University in St. Paul, Minnesota, to be
96.30used for preservation of Hmong historical
96.31artifacts and documents. Any part of the
96.32appropriation not used in fiscal year 2008 is
96.33available for use in fiscal year 2009. This is
97.1a onetime appropriation and is available until
97.2expended.
97.3
Subd. 5.Fund Transfer
97.4The Minnesota Historical Society may
97.5reallocate funds appropriated in and between
97.6subdivisions 2 and 3 for any program
97.7purposes.
97.8
Subd. 6.Minnesota River Valley Study Group
97.9The Minnesota Historical Society in
97.10cooperation with Explore Minnesota Tourism
97.11shall establish and coordinate a Minnesota
97.12River Valley study group. The Minnesota
97.13River Valley study group shall be comprised
97.14of representatives of the Minnesota Valley
97.15Scenic Byway Alliance, the Department
97.16of Natural Resources, the Department
97.17of Transportation, the Minnesota Indian
97.18Affairs Council, the Region 6 West, Region
97.196 East, Region 8 and Region 9 Regional
97.20Development Commissions, the Minnesota
97.21Historical Society, Explore Minnesota
97.22Tourism, State Arts Board, and other
97.23interested parties. The study group must
97.24develop a plan for coordinated activities
97.25among organizations represented on the
97.26study group to enhance and promote historic
97.27sites, and historic, scenic, and natural
97.28features of the Minnesota River Valley
97.29area. Study topics shall include, but are
97.30not limited to, historic sites related to the
97.31Dakota Conflict of 1862 and the state and
97.32local preparations for the sesquicentennial of
97.33this event. The Minnesota Historical Society
97.34and Explore Minnesota Tourism shall report
97.35on the findings and recommendations of
98.1the Minnesota River Valley study group to
98.2the standing committees of the house of
98.3representatives and senate with jurisdiction
98.4over historic sites and tourism by March 1,
98.52008. The Minnesota River Valley study
98.6group shall serve without compensation.

98.7
Sec. 5. BOARD OF THE ARTS
98.8
Subdivision 1.Total Appropriation
$
9,975,000
$
9,982,000
98.9The amounts that may be spent for each
98.10purpose are specified in the following
98.11subdivisions.
98.12
Subd. 2.Operations and Services
637,000
644,000
98.13
Subd. 3.Grants Programs
6,452,000
6,452,000
98.14The base budget for the grants program
98.15shall be $5,924,000 in fiscal year 2010 and
98.16$5,924,000 in fiscal year 2011.
98.17
Subd. 4.Regional Arts Councils
2,886,000
2,886,000
98.18The base budget for the regional arts councils
98.19shall be $2,539,000 in fiscal year 2010 and
98.20$2,539,000 in fiscal year 2011.

98.21
98.22
Sec. 6. MINNESOTA HUMANITIES
COMMISSION
$
500,000
$
500,000
98.23Of this amount, ten percent each year is
98.24for lifelong learning programs in greater
98.25Minnesota communities that do not
98.26receive financial support from other large
98.27educational institutions. The base budget
98.28for the Minnesota Humanities Commission
98.29is $500,000 each year in the 2010-2011
98.30biennium.

98.31    Sec. 7. Minnesota Statutes 2006, section 190.096, is amended to read:
98.32190.096 BATTLE FLAGS; REPAIR.
99.1    Subdivision 1. Authority to repair. Notwithstanding the provisions of Minnesota
99.2Statutes 1961, chapters 16 and 43, the adjutant general or the Minnesota Historical
99.3Society may contract for the repair, restoration, and preservation of regimental battle flags,
99.4standards, and guidons with persons or corporations skilled in such repair, restoration, and
99.5preservation, upon terms or conditions the adjutant general or the Minnesota Historical
99.6Society deems proper, subject to the approval of the commissioner of administration.
99.7    Subd. 2. Surrender. Notwithstanding the provisions of this section or section
99.8190.09 , the adjutant general or the Minnesota Historical Society may, for the purposes
99.9of this section, surrender the immediate custody and control of regimental battle flags,
99.10standards, and guidons under conditions and safeguards the adjutant general or the
99.11Minnesota Historical Society deems necessary and proper, for such time as is reasonably
99.12necessary for their restoration, after which they shall at once be again properly stored
99.13or displayed. The adjutant general or the Minnesota Historical Society shall provide
99.14adequate storage and display space for flags, standards, and guidons which have been
99.15repaired and restored.
99.16    Subd. 3. Battle flags; care and control. (a) The flags and colors carried by
99.17Minnesota troops in the Civil War, Indian Wars, and the Spanish-American War shall be
99.18preserved under the care and control of the Minnesota Historical Society. They shall be
99.19suitably encased and marked, and, so far as the historical society may deem it consistent
99.20with the safety of the flags and colors, they shall be publicly displayed in the capitol.
99.21    (b) The flags and colors carried by Minnesota troops in subsequent wars shall be
99.22preserved under the care and control of the adjutant general. They shall be suitably
99.23encased and marked, and, so far as the adjutant general may deem it consistent with the
99.24safety of the flags and colors, shall be publicly displayed.

99.25ARTICLE 10
99.26HOUSING

99.27
Section 1. SUMMARY OF APPROPRIATIONS.
99.28    The amounts shown in this section summarize direct appropriations, by fund, made
99.29in this article.
99.30
2008
2009
Total
99.31
General
$
67,896,000
$
49,040,000
$
116,936,000
99.32
TANF
$
3,075,000
$
3,075,000
$
6,150,000
99.33
Total
$
70,971,000
$
52,115,000
$
123,086,000

99.34
Sec. 2. HOUSING.
100.1    The sums shown in the columns marked "Appropriations" are appropriated to the
100.2agencies and for the purposes specified. The appropriations are from the general fund, or
100.3another named fund, and are available for the fiscal years indicated for each purpose. The
100.4figures "2008" and "2009" used in this act mean that the appropriations listed under them
100.5are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The
100.6first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is
100.7fiscal years 2008 and 2009. Appropriations for the fiscal year ending June 30, 2007, are
100.8effective the day following final enactment.
100.9
APPROPRIATIONS
100.10
Available for the Year
100.11
Ending June 30
100.12
2008
2009

100.13
Sec. 3. HOUSING FINANCE AGENCY
100.14
Subdivision 1.Total Appropriation
$
70,971,000
$
52,115,000
100.15
Appropriations by Fund
100.16
2008
2009
100.17
General
67,896,000
49,040,000
100.18
TANF
3,075,000
3,075,000
100.19This appropriation is for transfer to the
100.20housing development fund. The amounts
100.21that may be spent from this appropriation
100.22for certain programs are specified in the
100.23following subdivisions. Except as otherwise
100.24indicated, this transfer is part of the agency's
100.25permanent budget base.
100.26Of this amount, $3,075,000 the first year
100.27and $3,075,000 the second year are onetime
100.28appropriations from the state's federal TANF
100.29block grant under Title I of Public Law
100.30Number 104-193 to the commissioner of
100.31human services, to reimburse the housing
100.32development fund for assistance under
100.33the programs for families receiving TANF
100.34assistance under the MFIP program. The
100.35commissioner of human services shall make
100.36monthly reimbursements to the housing
101.1development fund. The commissioner
101.2of human services shall not make any
101.3reimbursement which the commissioner
101.4determines would be subject to a penalty
101.5under Code of Federal Regulations, section
101.6262.1. If the appropriation in either year is
101.7insufficient, the appropriation for the other
101.8year is available.
101.9
101.10
Subd. 2.Economic Development and Housing
Challenge
101.11(a) $21,308,000 the first year and $9,622,000
101.12the second year are for the economic
101.13development and housing challenge program
101.14under Minnesota Statutes, section 462A.33,
101.15for housing that:
101.16(i) conserves energy and utilizes sustainable,
101.17healthy building materials;
101.18(ii) preserves sensitive natural areas and
101.19open spaces and minimizes the need for new
101.20infrastructure;
101.21(iii) is accessible to jobs and services through
101.22integration with transportation or transit
101.23systems; and
101.24(iv) expands the mix of housing choices in
101.25a community by diversifying the levels of
101.26housing affordability.
101.27The agency may fund demonstration projects
101.28that have unique approaches to achieving the
101.29housing described above.
101.30(b) The base is reduced by $3,407,000 each
101.31year in fiscal year 2010 and fiscal year 2011.
101.32
Subd. 3.Housing Trust Fund
101.33$15,195,000 the first year and $11,945,000
101.34the second year are for the housing trust fund
102.1account created under Minnesota Statutes,
102.2section 462A.201, for the purposes of that
102.3section. Of this amount, $1,500,000 the first
102.4year and $1,500,000 in the second year is a
102.5onetime appropriation from the state's federal
102.6TANF block grant. The base is reduced by
102.7$3,390,000 each year in fiscal year 2010 and
102.8fiscal year 2011.
102.9
102.10
Subd. 4.Bridges Rental Assistance for
Mentally Ill
102.11$3,400,000 the first year and $3,400,000
102.12the second year are for a rental housing
102.13assistance program for persons with a mental
102.14illness or families with an adult member with
102.15a mental illness under Minnesota Statutes,
102.16section 462A.2097.
102.17
Subd. 5.Family Homeless Prevention
102.18$7,565,000 the first year and $7,565,000
102.19the second year are for family homeless
102.20prevention and assistance programs under
102.21Minnesota Statutes, section 462A.204. Of
102.22this amount, $1,575,000 in the first year and
102.23$1,575,000 in the second year is a onetime
102.24appropriation from the state's federal TANF
102.25block grant. The general fund base is reduced
102.26by $2,225,000 each year in fiscal year 2010
102.27and fiscal year 2011.
102.28
Subd. 6.Home Ownership Assistance Fund
102.29$1,885,000 the first year and $1,885,000
102.30the second year are for the home ownership
102.31assistance program under Minnesota
102.32Statutes, section 462A.21, subdivision 8.
102.33The base is reduced by $1,000,000 each year
102.34in fiscal year 2010 and fiscal year 2011.
102.35
Subd. 7.Affordable Rental Investment Fund
103.1$11,496,000 the first year and $8,996,000
103.2the second year are for the affordable rental
103.3investment fund program under Minnesota
103.4Statutes, section 462A.21, subdivision 8b.
103.5Of this amount, $2,500,000 the first year is a
103.6onetime appropriation.
103.7This appropriation is to finance the
103.8acquisition, rehabilitation, and debt
103.9restructuring of federally assisted rental
103.10property and for making equity take-out loans
103.11under Minnesota Statutes, section 462A.05,
103.12subdivision 39. The owner of the federally
103.13assisted rental property must agree to
103.14participate in the applicable federally assisted
103.15housing program and to extend any existing
103.16low-income affordability restrictions on the
103.17housing for the maximum term permitted.
103.18The owner must also enter into an agreement
103.19that gives local units of government,
103.20housing and redevelopment authorities,
103.21and nonprofit housing organizations the
103.22right of first refusal if the rental property
103.23is offered for sale. Priority must be given
103.24among comparable federally assisted rental
103.25properties to properties with the longest
103.26remaining term under an agreement for
103.27federal rental assistance. Priority must also
103.28be given among comparable rental housing
103.29developments to developments that are or
103.30will be owned by local government units, a
103.31housing and redevelopment authority, or a
103.32nonprofit housing organization.
103.33This appropriation may also be used to
103.34finance the acquisition, rehabilitation, and
103.35debt restructuring of existing supportive
103.36housing properties. For purposes of this
104.1subdivision, "supportive housing" means
104.2affordable rental housing with links to
104.3services necessary for individuals, youth, and
104.4families with children to maintain housing
104.5stability.
104.6Of this amount, $2,500,000 is appropriated
104.7for the purposes of financing the
104.8rehabilitation and operating costs to preserve
104.9public housing. For purposes of this
104.10subdivision, "public housing" is housing for
104.11low-income persons and households financed
104.12by the federal government and owned and
104.13operated by public housing authorities and
104.14agencies. Eligible public housing authorities
104.15must have a public housing assessment
104.16system rating of standard or above. Priority
104.17among comparable proposals must be given
104.18to proposals that maximize federal or local
104.19resources to finance the capital and operating
104.20costs.
104.21
104.22
Subd. 8.Housing Rehabilitation and
Accessibility
104.23$5,657,000 the first year and $4,287,000 the
104.24second year are for the housing rehabilitation
104.25and accessibility program under Minnesota
104.26Statutes, section 462A.05, subdivisions 14a
104.27and 15a. The base is reduced by $629,000
104.28each year in fiscal year 2010 and fiscal year
104.292011.
104.30
Subd. 9.Urban Indian Housing Program
104.31$187,000 the first year and $187,000 the
104.32second year are for the urban Indian housing
104.33program under Minnesota Statutes, section
104.34462A.07, subdivision 15. The base is
105.1reduced by $52,000 each year in fiscal year
105.22010 and fiscal year 2011.
105.3
Subd. 10.Tribal Indian Housing Program
105.4$1,683,000 the first year and $1,683,000
105.5the second year are for the tribal Indian
105.6housing program under Minnesota Statutes,
105.7section 462A.07, subdivision 14. The base is
105.8reduced by $468,000 each year in fiscal year
105.92010 and fiscal year 2011.
105.10
105.11
Subd. 11.Home Ownership Education,
Counseling, and Training
105.12$2,135,000 the first year and $2,135,000
105.13the second year are appropriated for the
105.14home ownership education, counseling, and
105.15training program under Minnesota Statutes,
105.16section 462A.209. The base is reduced by
105.17$1,460,000 each year in fiscal year 2010 and
105.18fiscal year 2011. Of this amount, $630,000
105.19the first year is for:
105.20(1) foreclosure prevention and assistance
105.21activities in communities that have mortgage
105.22foreclosure rates that exceed the statewide
105.23average foreclosure rate for the most recent
105.24quarter for which data is available; and
105.25(2) home buyer education and counseling
105.26activities by organizations that have
105.27experience working with emerging markets
105.28or partner with organizations with experience
105.29working with emerging markets and that have
105.30demonstrated a commitment to increasing the
105.31homeownership rate of emerging markets.
105.32
Subd. 12.Capacity Building Grants
105.33$820,000 for the biennium is for capacity
105.34building grants under Minnesota Statutes
106.1section 462A.21, subdivision 3b. Of this
106.2amount, $140,000 is for continuum of
106.3care planning in greater Minnesota. This
106.4appropriation is the agency's base budget for
106.5this program.
106.6
Subd. 13.Grant for Hennepin County
106.7$50,000 is a onetime appropriation in the
106.8first year for a grant to Hennepin County
106.9for collaboration with the Center for Urban
106.10and Regional Affairs at the University
106.11of Minnesota for the development of a
106.12predictive, data-driven model that can be
106.13used to identify at-risk properties in order to
106.14target resources to prevent foreclosure.

106.15    Sec. 4. Minnesota Statutes 2006, section 462A.21, subdivision 8b, is amended to read:
106.16    Subd. 8b. Family rental housing. It may establish a family rental housing
106.17assistance program to provide loans or direct rental subsidies for housing for families
106.18with incomes of up to 80 percent of state median income, or to provide grants for the
106.19operating cost of public housing. Priority must be given to those developments with
106.20resident families with the lowest income. The development may be financed by the
106.21agency or other public or private lenders. Direct rental subsidies must be administered by
106.22the agency for the benefit of eligible families. Financial assistance provided under this
106.23subdivision to recipients of aid to families with dependent children must be in the form
106.24of vendor payments whenever possible. Loans, grants, and direct rental subsidies under
106.25this subdivision may be made only with specific appropriations by the legislature. The
106.26limitations on eligible mortgagors contained in section 462A.03, subdivision 13, do not
106.27apply to loans for the rehabilitation of existing housing under this subdivision.

106.28    Sec. 5. Minnesota Statutes 2006, section 462A.33, subdivision 3, is amended to read:
106.29    Subd. 3. Contribution requirement. Fifty percent of the funds appropriated for
106.30this section must be used for challenge grants or loans which meet the requirements of this
106.31subdivision for housing proposals with financial or in-kind contributions from nonstate
106.32resources that reduce the need for deferred loan or grant funds from state resources. These
106.33Challenge grants or loans must be used for economically viable homeownership or rental
106.34housing proposals that:
107.1    (1) include a financial or in-kind contribution from an area employer and either a unit
107.2of local government or a private philanthropic, religious, or charitable organization; and
107.3    (2) address the housing needs of the local work force.
107.4    Among comparable proposals, preference must be given to proposals that include
107.5contributions from nonstate resources for the greatest portion of the total development
107.6cost. Comparable proposals with contributions from local units of government or private
107.7philanthropic, religious, or charitable organizations must be given preference in awarding
107.8grants or loans.
107.9    For the purpose of this subdivision, an employer a contribution may consist partially
107.10or wholly of the premium paid for federal housing tax credits.
107.11    Preference for grants and loans shall also be given to comparable proposals that
107.12include a financial or in-kind contribution from a unit of local government, an area
107.13employer, and a private philanthropic, religious, or charitable organization.

107.14    Sec. 6. Minnesota Statutes 2006, section 469.021, is amended to read:
107.15469.021 PREFERENCES.
107.16    As between applicants equally in need and eligible for occupancy of a dwelling
107.17and at the rent involved, preference shall be given to disabled veterans, persons with
107.18disabilities, and families of service persons who died in service and to families of veterans.
107.19In admitting families of low income to dwelling accommodations in any housing project an
107.20authority shall, as far as is reasonably practicable, give consideration to applications from
107.21families to which aid for dependent children is payable receiving assistance under chapter
107.22256J, and to resident families to whom public assistance or supplemental security income
107.23for the aged, blind, and disabled is payable, when those families are otherwise eligible.

107.24    Sec. 7. MORTGAGE FORECLOSURE REDUCTION.
107.25    The commissioner of the Minnesota Housing Finance Agency, in consultation
107.26with the commissioner of commerce, the attorney general, the Minnesota Mortgage
107.27Bankers' Association, Legal Services of Minnesota, the Minnesota Mortgage Foreclosure
107.28Prevention Association, and the Minnesota Sheriffs' Association shall evaluate the
107.29provisions of Minnesota Statutes, sections 580.04 and 580.041, to determine if corrective
107.30actions could be taken by the 2008 legislature to reduce mortgage foreclosures in the state.