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Key: (1) language to be deleted (2) new language

CHAPTER 135--H.F.No. 122
An act
relating to state government; appropriating money for jobs, economic
development, and housing; establishing and modifying certain programs;
providing for regulation of certain activities and practices; providing for
accounts, assessments, and fees; changing codes and licensing provisions;
providing penalties;amending Minnesota Statutes 2006, sections 13.7931,
by adding a subdivision; 16B.61, subdivision 1a; 16B.63, subdivision 5;
16B.65, subdivisions 1, 5a; 16B.70, subdivision 2; 116J.551, subdivision
1; 116J.554, subdivision 2; 116J.555, subdivision 1; 116J.575, subdivisions
1, 1a; 116J.966, subdivision 1; 116L.01, by adding a subdivision; 116L.04,
subdivision 1a; 116L.17, subdivision 1; 116L.20, subdivision 1; 116L.666,
subdivision 1; 116M.18, subdivision 6a; 154.003; 177.27, subdivisions 1, 4, 8,
9, 10; 177.28, subdivision 1; 177.30; 177.43, subdivisions 3, 4, 6, by adding a
subdivision; 178.01; 178.02; 178.03, subdivision 3; 178.041, subdivision 1;
179A.04, subdivision 3; 181.932, subdivision 1; 181.935; 182.65, subdivision 2;
190.096; 268.196, by adding a subdivision; 268A.01, subdivision 13, by adding
a subdivision; 268A.085, subdivision 1; 268A.15, by adding a subdivision;
298.227; 325E.37, subdivision 6; 326.01, subdivision 6g; 326.242, subdivisions
3d, 5, 8, 11, by adding a subdivision; 326.2441; 326.37, subdivision 1, by adding
a subdivision; 326.38; 326.40, subdivision 1; 326.401, subdivision 2; 326.405;
326.42, subdivision 1; 326.46; 326.47, subdivision 2; 326.48, subdivisions 1,
2, by adding a subdivision; 326.50; 326.975, subdivision 1; 326.992; 327.33,
subdivisions 2, 6; 327B.04, subdivision 7; 341.21, by adding a subdivision;
341.22; 341.25; 341.27; 341.28, subdivision 2, by adding a subdivision; 341.32,
subdivision 2; 341.321; 462.39, by adding a subdivision; 462A.21, subdivision
8b; 462A.33, subdivision 3; 469.021; 469.334; 471.471, subdivision 4; proposing
coding for new law in Minnesota Statutes, chapters 116O; 154; 179; 181; 181A;
182; 325E; 326; proposing coding for new law as Minnesota Statutes, chapter
326B; repealing Minnesota Statutes 2006, sections 16B.747, subdivision 4;
16C.18, subdivision 2; 176.042; 183.375, subdivision 5; 183.545, subdivision 9;
268.035, subdivision 9; 326.241; 326.44; 326.45; 326.52; 326.64; 326.975.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
JOBS, ECONOMIC DEVELOPMENT, HOUSING AND MINNESOTA
HERITAGE APPROPRIATIONS SUMMARY


Section 1. SUMMARY OF APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations, by fund, made
in this act.

2008
2009
Total

General
$
198,398,000
$
140,661,000
$
339,059,000

Workforce Development
17,259,000
17,274,000
34,533,000

Remediation
700,000
700,000
1,400,000

Workers' Compensation
22,736,000
23,074,000
45,810,000

Total
$
239,093,000
$
181,709,000
$
420,802,000


Sec. 2. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
    The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2008" and "2009" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2008, or June 30, 2009,
respectively. "The first year" is fiscal year 2008. "The second year" is fiscal year 2009.
"The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal year ending
June 30, 2007, are effective the day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2008
2009



Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT

Subdivision 1.Total Appropriation
$
93,700,000
$
61,514,000

Appropriations by Fund

2008
2009

General
76,505,000
44,319,000

Remediation
700,000
700,000


Workforce
Development
16,495,000
16,495,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.


Subd. 2.Business and Community
Development
40,667,000
8,639,000

Appropriations by Fund

General
39,967,000
7,939,000

Remediation
700,000
700,000
(a) (1) $250,000 the first year and $250,000
the second year are from the general fund
for a grant under Minnesota Statutes,
section 116J.421, to the Rural Policy and
Development Center at St. Peter, Minnesota.
The grant shall be used for research and
policy analysis on emerging economic and
social issues in rural Minnesota, to serve as
a policy resource center for rural Minnesota
communities, to encourage collaboration
across higher education institutions to
provide interdisciplinary team approaches
to research and problem-solving in rural
communities, and to administer overall
operations of the center.
(2) The grant shall be provided upon the
condition that each state-appropriated
dollar be matched with a nonstate dollar.
Acceptable matching funds are nonstate
contributions that the center has received and
have not been used to match previous state
grants. Any unencumbered balance in the
first year is available for the second year.
(b) $250,000 the first year and $250,000
the second year are from the general fund
for a grant to WomenVenture for women's
business development programs.
(c) $250,000 the first year is for a grant to
University Enterprise Laboratories (UEL)
for its direct and indirect expenses to support
efforts to encourage the growth of early-stage
and emerging bioscience companies. UEL
must provide a report by June 30 each year
to the commissioner on the expenditures
until the appropriation is expended. This is a
onetime appropriation and is available until
expended.
(d) $2,000,000 the first year is for grants
under Minnesota Statutes, section 116J.571,
for the redevelopment grant program. This is
a onetime appropriation.
(e) $100,000 the first year and $100,000 the
second year are to help small businesses
access federal funds through the federal
Small Business Innovation Research Program
and the federal Small Business Technology
Transfer Program. Department services
must include maintaining connections to
11 federal programs, assessment of specific
funding opportunities, review of funding
proposals, referral to specific consulting
services, and training workshops throughout
the state. Unless prohibited by federal law,
the department must implement fees for
services that help companies seek federal
Phase II Small Business Innovation Research
grants. The recommended fee schedule
must be reported to the chairs of the house
of representatives finance committee and
senate budget division with jurisdiction over
economic development by February 1, 2008.
(f) $100,000 the first year and $100,000
the second year are appropriated to the
Public Facilities Authority for the small
community wastewater treatment program
under Minnesota Statutes, chapter 446A.
(g) $255,000 the first year and $155,000
the second year are from the general fund
for a grant to the Metropolitan Economic
Development Association for continuing
minority business development programs in
the metropolitan area.
(h) $85,000 the first year and $85,000 the
second year are for grants to the Minnesota
Inventors Congress. Of this amount, $10,000
each year is for the Student Inventors
Congress.
(i) $151,000 the first year is for a onetime
grant to the city of Faribault to design,
construct, furnish, and equip renovations to
accommodate handicapped accessibility at
the Paradise Center for the Arts.
(j) $750,000 the first year is to Minnesota
Technology, Inc. for the small business
growth acceleration program established
under Minnesota Statutes, section 116O.115.
This is a onetime appropriation.
(k) $300,000 the first year is for a onetime
grant to the city of Northome for the
construction of a new municipal building to
replace the structures damaged by fire on
July 22, 2006. This appropriation is available
when the commissioner determines that a
sufficient match is available from nonstate
sources to complete the project.
(l) $300,000 the first year is for a grant to the
city of Worthington for an agricultural-based
bioscience training and testing center. Funds
appropriated under this section must be used
to provide a training and testing facility for
incubator firms developing new agricultural
processes and products. This is a onetime
appropriation and is available until expended.
(m) $1,750,000 the first year is for a onetime
grant to BioBusiness Alliance of Minnesota
for bioscience business development
programs to promote and position the state
as a global leader in bioscience business
activities. These funds may be used for:
(1) completion and periodic updating of
a statewide bioscience business industry
assessment of business technology
enterprises and Minnesota's competitive
position employing annual updates to federal
industry classification data;
(2) long-term strategic planning that includes
projections of market changes resulting
from developments in biotechnology and the
development of 20-year goals, strategies, and
identified objectives for renewable energy,
medical devices, biopharma, and biologics
business development in Minnesota;
(3) the design and construction of a
Minnesota focused bioscience business
model to test competing strategies and
scenarios, evaluate options, and forecast
outcomes; and
(4) creation of a bioscience business
resources network that includes development
of a statewide bioscience business economic
development framework to encourage
bioscience business development and
encourage spin-off activities, attract
bioscience business location or expansion in
Minnesota, and establish a local capability to
support strategic system level planning for
industry, government, and academia.
This appropriation is available until June 30,
2009.
(n) $125,000 the first year is to develop and
operate a bioscience business marketing
program to market Minnesota bioscience
businesses and business opportunities
to other states and other countries. The
bioscience business marketing program must
emphasize bioscience business location and
expansion opportunities in communities
outside of the seven-county metropolitan
area as defined in Minnesota Statutes,
section 473.121, subdivision 2, that have
established collaborative plans among two
or more municipal units for bioscience
business activities, and that are within 15
miles of a four-year, baccalaureate degree
granting institution or a two-year technical
or community college that offers bioscience
curricula. The commissioner must report
to the committees of the senate and house
of representatives having jurisdiction
over bioscience and technology issues by
February 1 of each year on the expenditures
of these funds and the promotional activities
undertaken to market the Minnesota
bioscience industry to persons outside of the
state. This is a onetime appropriation and is
available until expended.
(o) $325,000 is for a grant to the Walker
Area Community Center, Inc., to construct,
furnish, and equip the Walker Area
Community Center. This appropriation is
not available until the commissioner has
determined that an amount sufficient to
complete the project has been committed
from nonstate sources. This is a onetime
appropriation and is available until expended.
(p) $100,000 the first year is for a grant
to the Pine Island Economic Development
Authority for predesign to upgrade and
extend utilities to serve Elk Run Bioscience
Research Park and The Falls - Healthy
Living By Nature, an integrated medicine
facility. This is a onetime appropriation and
is available until expended.
(q) $350,000 the first year is for a grant
to Thomson Township for infrastructure
improvements for the industrial park. This
is a onetime appropriation and is available
until expended.
(r) $75,000 the first year is for a grant to
Le Sueur County for the cost of cleaning
up debris from lakes in Le Sueur County,
caused by the August 24, 2006, tornado in
southern Le Sueur County. This is a onetime
appropriation and is available until expended.
(s) $400,000 the first year is for a grant to
the city of Rogers to be used for relief from
damages caused by the September 16, 2006,
tornado.
(t) $75,000 the first year is for a grant to
the city of Warroad for new public facilities
to replace those damaged or destroyed
by the August 2006 tornado, including
approximately 28 new street lights and
underground electrical circuits and a new
fish cleaning house. This is a onetime
appropriation and is available until expended.
If an appropriation for this purpose is enacted
more than once in the 2007 session, the
appropriation is effective only once.
(u) $500,000 the first year is for a grant to
the Upper Sioux Community to improve the
current water system to ensure continuity
of service to the entire population of the
community and to meet the demands of the
community expansion over the next 20 years.
The is a onetime appropriation and is not
available until the Public Facilities Authority
has determined that at least $1,000,000 has
been committed from nonstate sources. This
appropriation is available until expended.
* (The preceding text beginning "(u)
$500,000 the first year is for" was
indicated as vetoed by the governor.)
(v) $755,000 the first year is for the urban
challenge grant program under Minnesota
Statutes, section 116M.18. This is a onetime
appropriation.
(w) $1,100,000 is for a grant to the
Neighborhood Development Center for
assistance necessary to retain minority
business enterprises at the Global Market.
This is a onetime appropriation and is
available until expended.
(x) $350,000 the first year is for a onetime
grant to the city of Inver Grove Heights
to reduce debt on the Inver Grove Heights
Veterans Memorial Community Center.
* (The preceding text beginning "(x)
$350,000 the first year is for" was
indicated as vetoed by the governor.)
(y) $14,900,000 the first year is for the
Minnesota minerals 21st century fund created
in Minnesota Statutes, section 116J.423, to
partially restore the money unallotted by the
commissioner of finance in 2003 pursuant
to Minnesota Statutes, section 16A.152.
This appropriation may be used as provided
in Minnesota Statutes, section 116J.423,
subdivision 2. This appropriation is available
until expended.
(z) $2,500,000 the first year is for a grant to
the city of St. Paul to be used to pay, redeem,
or refund debt service costs incurred for the
River Centre Campus. * (The preceding
text beginning "(z) $2,500,000 the first
year is for" was indicated as vetoed by the
governor.)
(aa) $147,000 each year is appropriated from
the general fund to the commissioner of
employment and economic development for
grants of $49,000 to eligible organizations
each year and for the purposes of this
paragraph. Each state grant dollar must be
matched with $1 of nonstate funds. Any
balance in the first year does not cancel but
is available in the second year. The base for
these grants in fiscal years 2010 and 2011
is $189,000 each year, with each eligible
organization receiving a $63,000 grant each
year.
The commissioner of employment and
economic development must make grants to
organizations to assist in the development
of entrepreneurs and small businesses.
Three grants must be awarded to continue
or to develop a program. One grant must
be awarded to the Riverbend Center for
Entrepreneurial Facilitation in Blue Earth
County, and two to other organizations
serving Faribault and Martin Counties. Grant
recipients must report to the commissioner
by February 1 of each year that the
organization receives a grant with the
number of customers served; the number of
businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates. The commissioner
must report to the house of representatives
and senate committees with jurisdiction
over economic development finance on the
effectiveness of these programs for assisting
in the development of entrepreneurs and
small businesses.
(bb) $5,000,000 the first year is for grants
under Minnesota Statutes, section 116J.8731,
for the Minnesota investment fund program.
Of this amount, up to $3,000,000 may
be used for a legal reference office and
data center facility, provided that the total
capital investment in the facility is at least
$60,000,000. This grant is not subject to
grant limitations under Minnesota Statutes,
section 116J.8731, subdivision 5. This is a
onetime appropriation.

Subd. 3.Workforce Development
50,024,000
49,833,000

Appropriations by Fund

General
33,529,000
33,338,000


Workforce
Development
16,495,000
16,495,000
(a) $6,785,000 the first year and $6,785,000
the second year are from the general fund
for the Minnesota job skills partnership
program under Minnesota Statutes, sections
116L.01 to 116L.17. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it. This
appropriation does not cancel.
(b) $455,000 the first year and $455,000 the
second year are from the general fund for
a grant under Minnesota Statutes, section
116J.8747, to Twin Cities RISE! to provide
training to hard-to-train individuals.
(c) $1,375,000 each year is from
the workforce development fund for
Opportunities Industrialization Center
programs.
(d) $5,614,000 each year is from the general
fund and $6,920,000 each year is from the
workforce development fund for extended
employment services for persons with
severe disabilities or related conditions under
Minnesota Statutes, section 268A.15. Of this,
$125,000 each year and in the base for fiscal
years 2010 and 2011 is to supplement funds
paid for wage incentives for the community
support fund established in Minnesota Rules,
part 3300.2045.
(e) $1,650,000 the first year and $1,650,000
the second year are from the general fund for
grants for programs that provide employment
support services to persons with mental
illness under Minnesota Statutes, sections
268A.13 and 268A.14. Up to $77,000 each
year may be used for administrative and
salary expenses.
(f) $2,440,000 the first year and $2,440,000
the second year are from the general
fund for grants under Minnesota Statutes,
section 268A.11, for the eight centers
for independent living. The base for this
program is $2,440,000 each year in fiscal
years 2010 and 2011. Money not expended
the first year is available the second year.
The commissioner must:
(1) transfer $115,000 of federal independent
living Part B rehabilitation services funds
to the Minnesota Centers for Independent
Living each year contingent upon the
availability of federal funds under Title VII,
Part B, of the Federal Rehabilitation Act of
1973 as amended under United States Code,
title 29, section 711(c), and approved by the
Statewide Independent Living Council;
(2) replace federal Part B funds in the
State Independent Living Council budget
transferred under clause (1) with $115,000
of Social Security Administration program
income funds each year; and
(3) provide an additional $185,000 each year
from the Social Security Administration
program income to the Minnesota Centers for
Independent Living to be allocated equally
among the eight centers.
Additional funding for centers for
independent living under clauses (1) and (3)
must be used for core independent living
services by the Centers for Independent
Living. The Statewide Independent Living
Council framework for statewide distribution
of state and federal funding to the Minnesota
Centers for Independent Living does not
apply to the funds under clauses (1) and
(3). The commissioner must report on the
transfers in clauses (1), (2), and (3), and any
other effort to pursue additional funding for
the Centers for Independent Living to the
standing committees of the senate and house
of representatives having jurisdiction over
Centers for Independent Living by March 15
each year.
(g) $5,940,000 the first year and $5,940,000
the second year are from the general fund for
state services for the blind activities.
(h) $150,000 the first year and $150,000
the second year are from the general fund
and $175,000 the first year and $175,000
the second year are from the workforce
development fund for grants under Minnesota
Statutes, section 268A.03, to Rise, Inc.
for the Minnesota Employment Center for
People Who are Deaf or Hard-of-Hearing.
Money not expended the first year is
available the second year.
(i) $9,021,000 the first year and $9,021,000
the second year are from the general fund for
the state's vocational rehabilitation program
for people with significant disabilities to
assist with employment, under Minnesota
Statutes, chapter 268A.
(j) $350,000 the first year and $350,000
the second year are from the workforce
development fund for grants to provide
interpreters for a regional transition program
that specializes in providing culturally
appropriate transition services leading to
employment for deaf, hard-of-hearing, and
deaf-blind students. This amount must be
added to the department's base.
(k) $150,000 the first year and $150,000 the
second year are for a grant to Advocating
Change Together for training, technical
assistance, and resources materials to persons
with developmental and mental illness
disabilities.
(l) $250,000 the first year and $250,000
the second year are from the workforce
development fund and $150,000 the first
year and $100,000 the second year are from
the general fund for a grant to Lifetrack
Resources for its immigrant and refugee
collaborative programs, including those
related to job-seeking skills and workplace
orientation, intensive job development,
functional work English, and on-site job
coaching. $50,000 of the first year general
fund appropriation is for a onetime pilot
Lifetrack project in Rochester.
(m) $75,000 the first year and $75,000 the
second year are from the general fund and
$1,000,000 the first year and $1,000,000
the second year are from the workforce
development fund for the youthbuild
program under Minnesota Statutes, sections
116L.361 to 116L.366. This appropriation
may be used for:
(1) restoring the three youthbuild programs
that were eliminated due to budget reductions
and adding seven more youthbuild programs
statewide;
(2) restoring funding levels for all youthbuild
programs plus an inflationary increase for
each program;
(3) increasing the number of at-risk youth
served by the youthbuild programs from 260
youth per year to 500 youth per year; and
(4) restoring the youthbuild focus on careers
in technology and adding a youthbuild focus
on careers in the medical field.
(n) $1,325,000 each year is from the
workforce development fund for grants
to fund summer youth employment in
Minneapolis. The grants shall be used to
fund up to 500 jobs for youth each summer.
Of this appropriation, $325,000 each year is
for a grant to the learn-to-earn summer youth
employment program. The commissioner
shall establish criteria for awarding the
grants. This appropriation is available in
either year of the biennium and is available
until spent.
(o) $600,000 the first year and $600,000
the second year are from the workforce
development fund for a grant to the city of
St. Paul for grants to fund summer youth
employment in St. Paul. The grants shall be
used to fund up to 500 jobs for youth each
summer. The commissioner shall establish
criteria for awarding the grants within the
city of St. Paul. This appropriation is
available in either year of the biennium and
is available until spent.
(p) $250,000 the first year and $250,000 the
second year are from the general fund for
grants to Northern Connections in Perham
to implement and operate a pilot workforce
program that provides one-stop supportive
services to individuals as they transition into
the workforce.
(q) $100,000 each year is for a grant to
Ramsey County Workforce Investment Board
for the development of the building lives
program. This is a onetime appropriation.
* (The preceding text beginning "(q)
$100,000 each year is for" was indicated
as vetoed by the governor.)
(r) $150,000 each year is for a grant to the
Hennepin-Carver Workforce Investment
Board (WIB) to coordinate with the Partners
for Progress Regional Skills Consortium
to provide employment and training as
demonstrated by the Twin Cities regional
health care training partnership project.
* (The preceding text beginning "(r)
$150,000 each year is for" was indicated
as vetoed by the governor.)
(s) $160,000 the first year is for a onetime
grant to Workforce Development, Inc., for
a pilot project to provide demand-driven
employment and training services to
welfare recipients and other economically
disadvantaged populations in Mower,
Freeborn, Dodge, and Steele Counties.
(t) $200,000 the first year and $200,000 the
second year are from the general fund for
a grant to HIRED to operate its industry
sector training initiatives, which provide
employee training developed in collaboration
with employers in specific, high-demand
industries. * (The preceding text beginning
"(t) $200,000 the first year" was indicated
as vetoed by the governor.)
(u) $100,000 the first year is for a onetime
grant to a nonprofit organization. The
nonprofit organization must work on behalf
of all licensed vendors to coordinate their
efforts to respond to solicitations or other
requests from private and governmental units
as defined in Minnesota Statutes, section
471.59, subdivision 1, in order to increase
employment opportunities for persons with
disabilities.
(v) $3,500,000 each year from the workforce
development fund is for the Minnesota youth
program under Minnesota Statutes, sections
116L.56 and 116L.561.
(w) $1,000,000 each year from the workforce
development fund is for a grant to the
Minnesota Alliance of Boys and Girls
Clubs to administer a statewide project
of youth job skills development. This
project, which may have career guidance
components, including health and life skills,
is to encourage, train, and assist youth in
job-seeking skills, workplace orientation,
and job site knowledge through coaching.
This grant requires a 25 percent match from
nonstate resources.
(x) $10,000 the first year is for a study on
ways to promote employment opportunities
for minorities, with a particular focus on
opportunities for African Americans, in
the state of Minnesota. The study should
focus on how to significantly expand the job
training available to minorities and promote
substantial increases in the wages paid to
minorities, at least to a rate well above living
wage, and within several years, to equality.
The commissioner must report on the study
to the governor and the chair of the finance
committee in each house of the legislature
that has jurisdiction over employment by
January 15, 2008, with recommendations for
implementing the findings.
(y) The commissioner must provide funding
for the Minnesota Conservation Corps to
provide learning stipends for deaf students
and wages for interpreters participating in
the MCC summer youth program.

Subd. 4.State-Funded Administration
3,009,000
3,042,000
The first $1,450,000 deposited in each
year of the biennium and in each year of
subsequent bienniums into the contingent
account created under Minnesota Statutes,
section 268.196, subdivision 3, shall be
transferred by June 30 of each fiscal year
to the workforce development fund created
under Minnesota Statutes, section 116L.20.
Deposits in excess of $1,450,000 shall be
transferred by June 30 of each fiscal year to
the general fund.


Sec. 4. EXPLORE MINNESOTA TOURISM
$
11,178,000
$
11,130,000
(a) To develop maximum private sector
involvement in tourism, $500,000 the first
year and $500,000 the second year must
be matched by Explore Minnesota Tourism
from nonstate sources. Each $1 of state
incentive must be matched with $3 of private
sector funding. Cash match is defined as
revenue to the state or documented cash
expenditures directly expended to support
Explore Minnesota Tourism programs. Up
to one-half of the private sector contribution
may be in-kind or soft match. The incentive
in the first year shall be based on fiscal
year 2007 private sector contributions as
prescribed in Laws 2005, First Special
Session chapter 1, article 3, section 6. The
incentive increase in the second year will
be based on fiscal year 2008 private sector
contributions. This incentive is ongoing.
Funding for the marketing grants is available
either year of the biennium. Unexpended
grant funds from the first year are available
in the second year.
Any unexpended money from the general
fund appropriations made under this section
does not cancel but must be placed in a
special marketing account for use by Explore
Minnesota Tourism for additional marketing
activities.
(b) $325,000 the first year and $325,000 the
second year are for the Minnesota Film and
TV Board. The appropriation in each year
is available only upon receipt by the board
of $1 in matching contributions of money or
in-kind contributions from nonstate sources
for every $3 provided by this appropriation.
(c) $650,000 the first year and $650,000
the second year are appropriated for a grant
to the Minnesota Film and TV Board for
the film jobs production program under
Minnesota Statutes, section 116U.26. These
appropriations are available in either year
of the biennium and are available until
expended.
(d) $150,000 the first year is for a onetime
grant to St. Louis County to be used for
feasibility studies and planning activities
concerning additional uses for the St. Louis
County Heritage and Arts Center at the
Duluth depot. The studies and planning
activities must include:
(1) examining the costs and benefits of
relocating the Northeast Minnesota Office of
Tourism to the Duluth depot;
(2) establishing a heritage tourism center at
the Duluth depot;
(3) developing a multimodal operational plan
integrating railroad and bus service; and
(4) identifying additional services and
activities that would contribute toward
returning the Duluth depot to being a
working railroad station and cultural gateway
to Duluth and St. Louis County.
This appropriation is available until
expended.


Sec. 5. HOUSING FINANCE AGENCY

Subdivision 1.Total Appropriation
$
69,323,000
$
45,234,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.
This appropriation is for transfer to the
housing development fund for the programs
specified. Except as otherwise indicated, this
transfer is part of the agency's permanent
budget base.

Subd. 2.Challenge Program
24,622,000
9,622,000
For the economic development and housing
challenge program under Minnesota Statutes,
section 462A.33, for housing that:
(1) conserves energy and utilizes sustainable,
healthy building materials;
(2) preserves sensitive natural areas and
open spaces and minimizes the need for new
infrastructure;
(3) is accessible to jobs and services through
integration with transportation or transit
systems; and
(4) expands the mix of housing choices in
a community by diversifying the levels of
housing affordability.
The agency may fund demonstration projects
that have unique approaches to achieving the
housing described in clauses (1) to (4).

Subd. 3.Housing Trust Fund
13,555,000
8,555,000
For deposit in the housing trust fund account
created under Minnesota Statutes, section
462A.201, and used for the purposes
provided in that section.

Subd. 4.Rental Assistance for Mentally Ill
2,638,000
2,638,000
For a rental housing assistance program for
persons with a mental illness or families with
an adult member with a mental illness under
Minnesota Statutes, section 462A.2097. The
agency must not reduce the funding under
this subdivision.

Subd. 5.Family Homeless Prevention
7,465,000
7,465,000
For family homeless prevention and
assistance programs under Minnesota
Statutes, section 462A.204. Any balance in
the first year does not cancel but is available
in the second year.

Subd. 6.Home Ownership Assistance Fund
885,000
885,000
For the home ownership assistance program
under Minnesota Statutes, section 462A.21,
subdivision 8.

Subd. 7.Affordable Rental Investment Fund
11,496,000
8,996,000
For the affordable rental investment fund
program under Minnesota Statutes, section
462A.21, subdivision 8b.
This appropriation is to finance the
acquisition, rehabilitation, and debt
restructuring of federally assisted rental
property and for making equity take-out
loans under Minnesota Statutes, section
462A.05, subdivision 39.
The owner of the federally assisted rental
property must agree to participate in
the applicable federally assisted housing
program and to extend any existing
low-income affordability restrictions on the
housing for the maximum term permitted.
The owner must also enter into an agreement
that gives local units of government,
housing and redevelopment authorities,
and nonprofit housing organizations the
right of first refusal if the rental property
is offered for sale. Priority must be given
among comparable federally assisted rental
properties to properties with the longest
remaining term under an agreement for
federal rental assistance. Priority must also
be given among comparable rental housing
developments to developments that are or
will be owned by local government units, a
housing and redevelopment authority, or a
nonprofit housing organization.
This appropriation also may be used to
finance the acquisition, rehabilitation, and
debt restructuring of existing supportive
housing properties. For purposes of this
subdivision, "supportive housing" means
affordable rental housing with links to
services necessary for individuals, youth, and
families with children to maintain housing
stability.
Of this amount, $2,500,000 is appropriated
for the purposes of financing the
rehabilitation and operating costs to preserve
public housing. For purposes of this
subdivision, "public housing" is housing for
low-income persons and households financed
by the federal government and owned and
operated by public housing authorities and
agencies. Eligible public housing authorities
must have a public housing assessment
system rating of standard or above. Priority
among comparable proposals must be given
to proposals that maximize federal or local
resources to finance the capital and operating
costs.


Subd. 8.Housing Rehabilitation and
Accessibility
5,587,000
4,287,000
For the housing rehabilitation and
accessibility program under Minnesota
Statutes, section 462A.05, subdivisions 14a
and 15a.

Subd. 9.Urban Indian Housing Program
187,000
187,000
For the urban Indian housing program
under Minnesota Statutes, section 462A.07,
subdivision 15. The base is reduced by
$7,000 each year in fiscal year 2010 and
fiscal year 2011.

Subd. 10.Tribal Indian Housing Program
1,683,000
1,394,000
For the tribal Indian housing program
under Minnesota Statutes, section 462A.07,
subdivision 14. The base is reduced by
$179,000 each year in fiscal year 2010 and
fiscal year 2011.


Subd. 11.Home Ownership Education,
Counseling, and Training
865,000
865,000
For the home ownership education,
counseling, and training program under
Minnesota Statutes, section 462A.209.

Subd. 12.Capacity Building Grants
340,000
340,000
For nonprofit capacity building grants
under Minnesota Statutes, section 462A.21,
subdivision 3b. The base is reduced by
$90,000 each year in fiscal year 2010 and
fiscal year 2011.


Sec. 6. LABOR AND INDUSTRY

Subdivision 1.Total Appropriation
$
22,909,000
$
23,174,000

Appropriations by Fund

2008
2009

General
1,069,000
1,024,000


Workers'
Compensation
21,076,000
21,371,000


Workforce
Development
764,000
779,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Workers' Compensation
10,360,000
10,617,000
This appropriation is from the workers'
compensation fund.
Up to $200,000 the first year and up to
$200,000 the second year are for grants
to the Vinland Center for rehabilitation
services. The grants shall be distributed as
the department refers injured workers to
the Vinland Center to receive rehabilitation
services.

Subd. 3.Safety Codes and Services
4,685,000
4,773,000
This appropriation is from the workers'
compensation fund.
$500,000 the first year and $500,000
the second year are from the workers'
compensation fund for patient safe handling
grants under Minnesota Statutes, section
182.6553. This is a onetime appropriation
and is available until expended. * (The
preceding text "and $500,000 the second
year" was indicated as vetoed by the
governor.)

Subd. 4.Labor Standards/Apprenticeship
1,833,000
1,803,000

Appropriations by Fund

General
1,069,000
1,024,000


Workforce
Development
764,000
779,000
The appropriation from the workforce
development fund is for the apprenticeship
program under Minnesota Statutes, chapter
178, and includes $100,000 each year for
labor education and advancement program
grants.
$360,000 the first year and $300,000 the
second year from the general fund are for
prevailing wage enforcement of which
$60,000 in the first year is for outreach and
survey participation improvements.

Subd. 5.General Support
6,031,000
5,981,000
This appropriation is from the workers'
compensation fund.



Sec. 7. BUREAU OF MEDIATION
SERVICES

Subdivision 1.Total Appropriation
$
1,864,000
$
1,904,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Mediation Services
1,714,000
1,754,000


Subd. 3.Labor Management Cooperation
Grants
150,000
150,000
$150,000 the first year and $150,000
the second year are for grants to area
labor-management committees. Grants may
be awarded for a 12-month period beginning
July 1 of each year. Any unencumbered
balance remaining at the end of the first
year does not cancel but is available for the
second year.



Sec. 8. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,660,000
$
1,703,000
This appropriation is from the workers'
compensation fund.



Sec. 9. MINNESOTA HISTORICAL
SOCIETY

Subdivision 1.Total Appropriation
$
25,819,000
$
24,504,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions. Of the appropriations,
$325,000 the first year and $500,000 the
second year and each fiscal year thereafter
are for increased building lease costs.

Subd. 2.Education and Outreach
14,787,000
13,862,000
(a) Of this amount, $750,000 the first year is
a onetime appropriation for the Minnesota
Sesquicentennial Commission. Of this
appropriation, $325,000 is for competitive
matching grants for local events and projects;
$325,000 is for planning and support of
statewide activities, and up to $100,000 may
be used for administration.
The Minnesota Historical Society, the State
Arts Board, and Explore Minnesota Tourism
may assist the commission in designing and
implementing the grants program.
The commission shall encourage private
contributions to match the state funds to the
greatest extent possible. Any gifts, pledges,
membership fees, or contributions received
by the commission are appropriated to the
commission.
(b) $500,000 the first year is for a grant-in-aid
program for county and local historical
societies. The Minnesota Historical Society
shall establish program guidelines and
grant evaluation and award criteria for the
program. Each dollar of state funds awarded
to a grantee must be matched with nonstate
funds on a dollar-for-dollar basis by a
grantee. This is a onetime appropriation and
is available until expended.
(c) Notwithstanding Minnesota Statutes,
section 138.668, the Minnesota Historical
Society may not charge a fee for its general
tours at the Capitol, but may charge fees for
special programs other than general tours.

Subd. 3.Preservation and Access
10,520,000
10,396,000
(a) $250,000 the first year is to conduct
a conservation survey and for restoration,
treatment, moving, and storage of the 1905
historic furnishings and works of art in the
Minnesota State Capitol. This is a onetime
appropriation and is available until expended.
(b) $150,000 the first year is for the
preservation of battle flags. This is a onetime
appropriation and is available until expended.
(c) Funds may be reallocated between
paragraphs (a) and (b) for the purpose of
maximizing federal funds.

Subd. 4.Fiscal Agent

(a) Minnesota International Center
43,000
43,000

(b) Minnesota Air National Guard Museum
16,000
-0-

(c) Minnesota Military Museum
100,000
-0-

(d) Farmamerica
128,000
128,000

(e) Balances Forward
Any unencumbered balance remaining in
this subdivision the first year does not cancel
but is available for the second year of the
biennium.
(f) $75,000 the first year is for a onetime
grant to the Nicollet County Historical
Society for renovation of the center exhibit
gallery in the Treaty Site History Center in
St. Peter, including additions to the center's
infrastructure and state-of-the-art interpretive
elements. This appropriation is available
until expended.
(g) $75,000 the first year is for a grant to
the Hmong Studies Center at Concordia
University in St. Paul, Minnesota, to be
used for preservation of Hmong historical
artifacts and documents. Any part of the
appropriation not used in fiscal year 2008 is
available for use in fiscal year 2009. This is
a onetime appropriation and is available until
expended.
(h) $75,000 the first year and $75,000 the
second year are for a grant to the city of
Eveleth to be used for the support of the
Hockey Hall of Fame Museum provided
that it continues to operate in the city. This
grant is in addition to and must not be
used to supplant funding under Minnesota
Statutes, section 298.28, subdivision 9c. This
appropriation is added to the society's base
budget. * (The preceding text "and $75,000
the second year" and "This appropriation
is added to the society's base budget."
were indicated as vetoed by the governor.)

Subd. 5.Fund Transfer
The Minnesota Historical Society may
reallocate funds appropriated in and between
subdivisions 2 and 3 for any program
purposes and the appropriations are available
in either year of the biennium.

Subd. 6.Minnesota River Valley Study Group
The Minnesota Historical Society in
cooperation with Explore Minnesota Tourism
shall establish and coordinate a Minnesota
River Valley study group. The Minnesota
River Valley study group shall be comprised
of representatives of the Minnesota Valley
Scenic Byway Alliance, the Department
of Natural Resources, the Department
of Transportation, the Minnesota Indian
Affairs Council, the Region 6 West, Region
6 East, Region 8 and Region 9 Regional
Development Commissions, the Minnesota
Historical Society, Explore Minnesota
Tourism, State Arts Board, and other
interested parties. The study group must
develop a plan for coordinated activities
among organizations represented on the
study group to enhance and promote historic
sites, and historic, scenic, and natural
features of the Minnesota River Valley
area. Study topics shall include, but are
not limited to, historic sites related to the
Dakota Conflict of 1862 and the state and
local preparations for the sesquicentennial of
this event. The Minnesota Historical Society
and Explore Minnesota Tourism shall report
on the findings and recommendations of
the Minnesota River Valley study group to
the standing committees of the house of
representatives and senate with jurisdiction
over historic sites and tourism by March 1,
2008. The Minnesota River Valley study
group shall serve without compensation.


Sec. 10. BOARD OF THE ARTS

Subdivision 1.Total Appropriation
$
10,215,000
$
10,227,000
If the appropriation for either year is
insufficient, the appropriation for the other
year is available.
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Operations and Services
641,000
651,000

Subd. 3.Grants Program
6,617,000
6,617,000
The base for this program is $6,727,000 each
year in the 2010-2011 biennium.

Subd. 4.Regional Arts Councils
2,957,000
2,959,000


Sec. 11. BOARD OF ACCOUNTANCY
$
496,000
$
505,000





Sec. 12. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
800,000
$
815,000



Sec. 13. BOARD OF BARBER AND
COSMETOLOGIST EXAMINERS
$
829,000
$
749,000



Sec. 14. MINNESOTA BOXING
COMMISSION
$
50,000
$
-0-
This is a onetime appropriation to transition
the commission to being a self-funded entity.



Sec. 15. MINNESOTA HUMANITIES
COMMISSION
$
250,000
$
250,000
Of this amount, ten percent each year is
for lifelong learning programs in greater
Minnesota communities that do not
receive financial support from other large
educational institutions. The base budget
for the Minnesota Humanities Commission
is $250,000 each year in the 2010-2011
biennium.


Sec. 16. TRANSFERS
The commissioner of labor and industry shall
transfer $1,627,000 by June 30, 2008, and
$1,515,000 by June 30, 2009, and each year
thereafter, from the construction code fund to
the general fund.
Of the balance remaining in Laws 2005, First
Special Session chapter 1, article 3, section
2, subdivision 2, for the methamphetamine
laboratory cleanup revolving loan fund,
$100,000 is for transfer to the small
community wastewater treatment account
established in Minnesota Statutes, section
446A.075, subdivision 1.

ARTICLE 2
EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS

    Section 1. Minnesota Statutes 2006, section 13.7931, is amended by adding a
subdivision to read:
    Subd. 5. Data from safety and education programs for loggers. The following
data collected from persons who attend safety and education programs or seminars for
loggers established or approved by the commissioner under section 176.130, subdivision
11, is public data:
    (1) the names of the individuals attending the program or seminar;
    (2) the names of each attendee's employer;
    (3) the city where the employer is located;
    (4) the date the program or seminar was held; and
    (5) a description of the seminar or program.

    Sec. 2. Minnesota Statutes 2006, section 16B.61, subdivision 1a, is amended to read:
    Subd. 1a. Administration by commissioner. The commissioner shall administer
and enforce the State Building Code as a municipality with respect to public buildings and
state licensed facilities in the state. The commissioner shall establish appropriate permit,
plan review, and inspection fees, and surcharges for public buildings and state licensed
facilities. Fees and surcharges for public buildings and state licensed facilities must be
remitted to the commissioner, who shall deposit them in the state treasury for credit to
the special revenue fund.
    Municipalities other than the state having an agreement with the commissioner
for code administration and enforcement service for public buildings and state licensed
facilities shall charge their customary fees, including surcharge, to be paid directly to the
jurisdiction by the applicant seeking authorization to construct a public building or a state
licensed facility. The commissioner shall sign an agreement with a municipality other than
the state for plan review, code administration, and code enforcement service for public
buildings and state licensed facilities in the jurisdiction if the building officials of the
municipality meet the requirements of section 16B.65 and wish to provide those services
and if the commissioner determines that the municipality has enough adequately trained
and qualified building inspectors to provide those services for the construction project.
    The commissioner may direct the state building official to assist a community that
has been affected by a natural disaster with building evaluation and other activities related
to building codes.
    Administration and enforcement in a municipality under this section must apply
any optional provisions of the State Building Code adopted by the municipality. A
municipality adopting any optional code provision shall notify the state building official
within 30 days of its adoption.
    The commissioner shall administer and enforce the provisions of the code relating to
elevators statewide, except as provided for under section 16B.747, subdivision 3.

    Sec. 3. Minnesota Statutes 2006, section 16B.65, subdivision 1, is amended to read:
    Subdivision 1. Designation. By January 1, 2002, Each municipality shall designate
a building official to administer the code. A municipality may designate no more than one
building official responsible for code administration defined by each certification category
established in rule. Two or more municipalities may combine in the designation of a
building official for the purpose of administering the provisions of the code within their
communities. In those municipalities for which no building officials have been designated,
the state building official may use whichever state employees are necessary to perform
the duties of the building official until the municipality makes a temporary or permanent
designation. All costs incurred by virtue of these services rendered by state employees
must be borne by the involved municipality and receipts arising from these services must
be paid into the state treasury and credited to the special revenue fund to the commissioner.

    Sec. 4. Minnesota Statutes 2006, section 16B.65, subdivision 5a, is amended to read:
    Subd. 5a. Administrative action and penalties. The commissioner shall, by rule,
establish a graduated schedule of administrative actions for violations of sections 16B.59
to 16B.75 and rules adopted under those sections. The schedule must be based on and
reflect the culpability, frequency, and severity of the violator's actions. The commissioner
may impose a penalty from the schedule on a certification holder for a violation of sections
16B.59 to 16B.75 and rules adopted under those sections. The penalty is in addition to
any criminal penalty imposed for the same violation. Administrative monetary penalties
imposed by the commissioner must be paid to the special revenue fund.

    Sec. 5. Minnesota Statutes 2006, section 16B.70, subdivision 2, is amended to read:
    Subd. 2. Collection and reports. All permit surcharges must be collected by each
municipality and a portion of them remitted to the state. Each municipality having a
population greater than 20,000 people shall prepare and submit to the commissioner once
a month a report of fees and surcharges on fees collected during the previous month
but shall retain the greater of two percent or that amount collected up to $25 to apply
against the administrative expenses the municipality incurs in collecting the surcharges.
All other municipalities shall submit the report and surcharges on fees once a quarter
but shall retain the greater of four percent or that amount collected up to $25 to apply
against the administrative expenses the municipalities incur in collecting the surcharges.
The report, which must be in a form prescribed by the commissioner, must be submitted
together with a remittance covering the surcharges collected by the 15th day following
the month or quarter in which the surcharges are collected. All money collected by the
commissioner through surcharges and other fees prescribed by sections 16B.59 to 16B.75
shall be deposited in the state government special revenue fund and is appropriated to the
commissioner for the purpose of administering and enforcing the State Building Code
under sections 16B.59 to 16B.75.

    Sec. 6. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:
    Subdivision 1. Grant account. A contaminated site cleanup and development
grant account is created in the general fund. Money in the account may be used, as
appropriated by law, to make grants as provided in section 116J.554 and to pay for the
commissioner's costs in reviewing applications and making grants. Notwithstanding
section 16A.28, money appropriated to the account for this program from any source is
available for four years until spent.

    Sec. 7. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:
    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the
following criteria are met:
    (1) the site is not scheduled for funding during the current or next fiscal year under
the Comprehensive Environmental Response, Compensation, and Liability Act, United
States Code, title 42, section 9601, et seq. or under the Environmental Response, and
Liability Act under sections 115B.01 to 115B.20;
    (2) the appraised value of the site after adjusting for the effect on the value of the
presence or possible presence of contaminants using accepted appraisal methodology, or
the current market value of the site as issued under section 273.121, separately taking into
account the effect of the contaminants on the market value, (i) is less than 75 percent of
the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup
costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and
    (3) (2) if the proposed cleanup is completed, it is expected that the site will be
improved with buildings or other improvements and these improvements will provide a
substantial increase in the property tax base within a reasonable period of time or the site
will be used for an important publicly owned or tax-exempt facility.

    Sec. 8. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:
    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
will exceed the available appropriations and the agency will be able to provide grants to
only some of the applicant development authorities.
    (b) If applications for grants for qualified sites exceed the available appropriations,
the agency shall make grants for sites that, in the commissioner's judgment, provide
the highest return in public benefits for the public costs incurred and that meet all the
requirements provided by law. In making this judgment, the commissioner shall consider
the following factors:
    (1) the recommendations or ranking of projects by the commissioner of the Pollution
Control Agency regarding the potential threat to public health and the environment that
would be reduced or eliminated by completion of each of the response action plans;
    (2) the potential increase in the property tax base of the local taxing jurisdictions,
considered relative to the fiscal needs of the jurisdictions, that will result from
developments that will occur because of completion of each of the response action plans;
    (3) the social value to the community of the cleanup and redevelopment of the site,
including the importance of development of the proposed public facilities on each of
the sites;
    (4) the probability that each site will be cleaned up without use of government
money in the reasonably foreseeable future by considering but not limited to the current
market value of the site versus the cleanup cost;
    (5) the amount of cleanup costs for each site; and
    (6) the amount of the commitment of municipal or other local resources to pay for
the cleanup costs.
    The factors are not listed in a rank order of priority; rather the commissioner may
weigh each factor, depending upon the facts and circumstances, as the commissioner
considers appropriate. The commissioner may consider other factors that affect the net
return of public benefits for completion of the response action plan. The commissioner,
notwithstanding the listing of priorities and the goal of maximizing the return of public
benefits, shall make grants that distribute available money to sites both within and outside
of the metropolitan area. The commissioner shall provide a written statement of the
supporting reasons for each grant. Unless sufficient applications are not received for
qualifying sites outside of the metropolitan area, at least 25 percent of the money provided
as grants must be made for sites located outside of the metropolitan area.

    Sec. 9. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:
    Subdivision 1. Commissioner discretion. The commissioner may make a grant for
up to 50 percent of the eligible costs of a project. The determination of whether to make a
grant for a site is within the discretion of the commissioner, subject to this section and
sections 116J.571 to 116J.574 and available unencumbered money in the redevelopment
account. If the commissioner determines that the applications for grants for projects in
greater Minnesota are less than the amount of grant funds available, the commissioner
may make grants for projects anywhere in Minnesota. The commissioner's decisions and
application of the priorities under this section are not subject to judicial review, except
for abuse of discretion.

    Sec. 10. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:
    Subd. 1a. Priorities. (a) If applications for grants exceed the available
appropriations, grants shall be made for sites that, in the commissioner's judgment, provide
the highest return in public benefits for the public costs incurred. "Public benefits" include
job creation, bioscience development, environmental benefits to the state and region,
efficient use of public transportation, efficient use of existing infrastructure, provision of
affordable housing, multiuse development that constitutes community rebuilding rather
than single-use development, crime reduction, blight reduction, community stabilization,
and property tax base maintenance or improvement. In making this judgment, the
commissioner shall give priority to redevelopment projects with one or more of the
following characteristics:
    (1) the need for redevelopment in conjunction with contamination remediation needs;
    (2) the redevelopment project meets current tax increment financing requirements
for a redevelopment district and tax increments will contribute to the project;
    (3) the redevelopment potential within the municipality;
    (4) proximity to public transit if located in the metropolitan area; and
    (5) redevelopment costs related to expansion of a bioscience business in Minnesota;
and
    (5) (6) multijurisdictional projects that take into account the need for affordable
housing, transportation, and environmental impact.
    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
commissioner may weigh each factor, depending upon the facts and circumstances, as
the commissioner considers appropriate. The commissioner may consider other factors
that affect the net return of public benefits for completion of the redevelopment plan. The
commissioner, notwithstanding the listing of priorities and the goal of maximizing the
return of public benefits, shall make grants that distribute available money to sites both
within and outside of the metropolitan area. Unless sufficient applications are not received
for qualifying sites outside of the metropolitan area, at least 50 percent of the money
provided as grants must be made for sites located outside of the metropolitan area.

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

    Sec. 12. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision
to read:
    Subd. 4. Workforce development intermediaries. "Workforce development
intermediaries" means public, private, or nonprofit entities that provide employment
services to low-income individuals and have a demonstrated track record bringing together
employers and workers, private and public funding streams, and other stakeholders to
implement pathways to career advancement for low-income individuals. Entities may
include, but are not limited to, nonprofit organizations, educational institutions, or the
administrative entity of a local workforce service area.

    Sec. 13. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:
    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid
for developing programs which assist in the transition of persons from welfare to work and
assist individuals at or below 200 percent of the federal poverty guidelines. The program
is to be operated by the board. The board shall consult and coordinate with program
administrators at the Department of Employment and Economic Development to design
and provide services for temporary assistance for needy families recipients.
    Pathways grants-in-aid may be awarded to educational or other nonprofit training
institutions or to workforce development intermediaries for education and training
programs and services supporting education and training programs that serve eligible
recipients.
    Preference shall be given to projects that:
    (1) provide employment with benefits paid to employees;
    (2) provide employment where there are defined career paths for trainees;
    (3) pilot the development of an educational pathway that can be used on a continuing
basis for transitioning persons from welfare to work; and
    (4) demonstrate the active participation of Department of Employment and
Economic Development workforce centers, Minnesota State College and University
institutions and other educational institutions, and local welfare agencies.
    Pathways projects must demonstrate the active involvement and financial
commitment of private business. Pathways projects must be matched with cash or in-kind
contributions on at least a one-to-one one-half-to-one ratio by participating private
business.
    A single grant to any one institution shall not exceed $400,000. A portion of a grant
may be used for preemployment training.

    Sec. 14. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them in this subdivision.
    (b) "Commissioner" means the commissioner of employment and economic
development.
    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the
time employment ceased or was working in the state at the time employment ceased and:
    (1) has been permanently separated or has received a notice of permanent separation
from public or private sector employment and is eligible for or has exhausted entitlement
to unemployment benefits, and is unlikely to return to the previous industry or occupation;
    (2) has been long-term unemployed and has limited opportunities for employment
or reemployment in the same or a similar occupation in the area in which the individual
resides, including older individuals who may have substantial barriers to employment by
reason of age;
    (3) has been terminated or has received a notice of termination of employment as a
result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
result of general economic conditions in the community in which the individual resides or
because of natural disasters; or
    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who
has spent a substantial number of years in the home providing homemaking service and
(i) has been dependent upon the financial support of another; and now due to divorce,
separation, death, or disability of that person, must find employment to self support; or (ii)
derived the substantial share of support from public assistance on account of dependents
in the home and no longer receives such support.
    To be eligible under this clause, the support must have ceased while the worker
resided in Minnesota.
    (d) "Eligible organization" means a state or local government unit, nonprofit
organization, community action agency, business organization or association, or labor
organization.
    (e) "Plant closing" means the announced or actual permanent shutdown of a single
site of employment, or one or more facilities or operating units within a single site of
employment.
    (f) "Substantial layoff" means a permanent reduction in the workforce, which is
not a result of a plant closing, and which results in an employment loss at a single site
of employment during any 30-day period for at least 50 employees excluding those
employees that work less than 20 hours per week.

    Sec. 15. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:
    Subdivision 1. Determination and collection of special assessment. (a) In addition
to amounts due from an employer under the Minnesota unemployment insurance program,
each employer, except an employer making reimbursements is liable for a special
assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on
all taxable wages, as defined in section 268.035, subdivision 24. Beginning January 1,
2008, the special assessment shall be levied at a rate of .085 percent per year on all taxable
wages. The assessment shall become due and be paid by each employer on the same
schedule and in the same manner as other amounts due from an employer under section
268.051, subdivision 1.
    (b) The special assessment levied under this section shall be subject to the same
requirements and collection procedures as any amounts due from an employer under the
Minnesota unemployment insurance program.

    Sec. 16. Minnesota Statutes 2006, section 116L.666, subdivision 1, is amended to read:
    Subdivision 1. Designation of workforce service areas. For the purpose of
administering federal, state, and local employment and training services, the commissioner
shall designate the geographic boundaries for workforce service areas in Minnesota.
    The commissioner shall approve a request to be a workforce service area from:
    (1) a home rule charter or statutory city with a population of 200,000 or more or a
county with a population of 200,000 or more; or
    (2) a consortium of contiguous home rule charter or statutory cities or counties
with an aggregate population of 200,000 or more that serves a substantial part of one or
more labor markets.
    The commissioner may approve a request to be a workforce service area from a
home rule charter or statutory city or a county or a consortium of contiguous home
rule charter or statutory cities or counties, without regard to population, that serves a
substantial portion of a labor market area.
    The commissioner shall make a final designation of workforce service areas within
the state after consulting with local elected officials and the governor's Workforce
Development Council. Existing service delivery areas designated under the federal Job
Training Partnership Act shall be initially designated as workforce service areas providing
that no other petitions are submitted by local elected officials.
    The commissioner may redesignate workforce service areas, upon the advice of
the affected local elected officials, no more frequently than every two years. These
redesignations must be made not later than four months before the beginning of a program
year.

    Sec. 17. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:
    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
corporation with which it has entered into an agreement under subdivision 1. These
loans must be used to support a new or expanding business. This support may include
such forms of financing as the sale of goods to the business on installment or deferred
payments, lease purchase agreements, or royalty investments in the business. The interest
rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
nonprofit corporation may charge a loan origination fee equal to or less than one percent
of the loan value. The nonprofit corporation may retain the amount of the origination fee.
The nonprofit corporation must provide at least an equal match to the loan received by the
board. The maximum loan available to the nonprofit corporation under this subdivision is
$50,000. Loans made to the nonprofit corporation under this subdivision may be made
without interest. Repayments made by the nonprofit corporation must be deposited in the
revolving fund created for urban initiative grants.

    Sec. 18. [116O.115] SMALL BUSINESS GROWTH ACCELERATION
PROGRAM.
    Subdivision 1. Establishment; purpose. The small business growth acceleration
program is established. The purpose of the program is to (1) help qualified companies
implement technology and business improvements; and (2) bridge the gap between
standard market pricing for technology and business improvements and what qualified
companies can afford to pay.
    Subd. 2. Qualified company. A company is qualified to receive assistance under
the small business growth acceleration program if it is a manufacturing company or a
manufacturing-related service company that employs 100 or fewer full-time equivalent
employees.
    Subd. 3. Applications for assistance. A company seeking assistance under the
small business growth acceleration program must file an application according to the
requirements of the corporation. A company's application for small business growth
acceleration program assistance must include documentation of the company's overall plan
for technology and business improvement and prioritize the components of the overall
plan. The application must also document the company's need for small business growth
acceleration program funds in order to carry forward the highest priority components of
the plan.
    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish
procedures for determining which applicants for assistance under the small business
growth acceleration program will receive program funding. Funding shall be awarded
only to accelerate a qualified company's adoption of needed technology or business
improvements when the corporation concludes that it is unlikely the improvements could
be accomplished in any other way.
    (b) The maximum amount of funds awarded to a qualified company under the small
business growth acceleration program for a particular project must not exceed 50 percent
of the total cost of a project and must not under any circumstances exceed $25,000 during
a calendar year. The corporation shall not award to a qualified company small business
growth acceleration program funds in excess of $50,000 per year.
    (c) Any funds awarded to a qualified company under the small business growth
acceleration program must be used for business services and products that will enhance the
operation of the company. These business services and products must come either directly
from the corporation or from a network of expert providers identified and approved by
the corporation. No company receiving small business growth acceleration program
funds may use the funds for refinancing, overhead costs, new construction, renovation,
equipment, or computer hardware.
    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
documented according to requirements of the corporation.
    Subd. 5. Service agreements. The corporation shall enter a written service
agreement with each company awarded funds under the small business growth acceleration
program. Each service agreement shall clearly articulate the company's need for service,
state the cost of the service, identify who will provide the service, and define the scope of
the service that will be provided. The service agreement must also include an estimate
of the financial impact of the service on the company and require the company to report
the actual financial impact of the service to the corporation 24 months after the service is
provided.
    Subd. 6. Reporting. The corporation shall report annually to the legislative
committees with fiscal jurisdiction over the Department of Employment and Economic
Development:
    (1) the funds awarded under the small business growth acceleration program during
the past 12 months;
    (2) the estimated financial impact of the funds awarded to each company receiving
service under the program; and
    (3) the actual financial impact of funds awarded during the past 24 months.

    Sec. 19. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.
    Subdivision 1. Definition. For the purpose of this section, "employer" means an
employer in the meatpacking industry.
    Subd. 2. Right to adequate equipment. An employer must furnish its employees
with equipment to safely perform their jobs under OSHA standards.
    Subd. 3. Information provided to employee by employer. (a) An employer
must provide an explanation in an employee's native language of the employee's rights
and duties as an employee either person to person or through written materials that, at a
minimum, include:
    (1) a complete description of the salary and benefits plans as they relate to the
employee;
    (2) a job description for the employee's position;
    (3) a description of leave policies;
    (4) a description of the work hours and work hours policy; and
    (5) a description of the occupational hazards known to exist for the position.
    (b) The explanation must also include information on the following employee rights
as protected by state or federal law and a description of where additional information
about those rights may be obtained:
    (1) the right to organize and bargain collectively and refrain from organizing and
bargaining collectively;
    (2) the right to a safe workplace; and
    (3) the right to be free from discrimination.
    Subd. 4. Commissioner duties. The commissioner of labor and industry in
consultation with the commissioner of human rights must develop and implement a
strategy to assist employers in providing adequate notice and education to employees of
their rights under this section. The commissioner shall assign the duty to implement
the strategy to a specific identified position in the department. The position, along with
contact information, must be included on printed materials the department prepares and
distributes to carry out the commissioner's duties under this section.

    Sec. 20. Minnesota Statutes 2006, section 179A.04, subdivision 3, is amended to read:
    Subd. 3. Other duties. (a) The commissioner shall:
    (1) provide mediation services as requested by the parties until the parties reach
agreement, and may continue to assist parties after they have submitted their final
positions for interest arbitration;
    (2) issue notices, subpoenas, and orders required by law to carry out duties under
sections 179A.01 to 179A.25;
    (3) assist the parties in formulating petitions, notices, and other papers required to
be filed with the commissioner;
    (4) conduct elections;
    (5) certify the final results of any election or other voting procedure conducted
under sections 179A.01 to 179A.25;
    (6) adopt rules relating to the administration of this chapter and the conduct of
hearings and elections;
    (7) receive, catalogue, file, and make available to the public all decisions of
arbitrators and panels authorized by sections 179A.01 to 179A.25, all grievance arbitration
decisions, and the commissioner's orders and decisions;
    (8) adopt, subject to chapter 14, a grievance procedure that fulfills the purposes of
section 179A.20, subdivision 4, that is available to any employee in a unit not covered by
a contractual grievance procedure;
    (9) maintain a schedule of state employee classifications or positions assigned to
each unit established in section 179A.10, subdivision 2;
    (10) collect fees established by rule for empanelment of persons on the labor
arbitrator roster maintained by the commissioner or in conjunction with fair share fee
challenges. Arbitrator application fees will be $100 per year for initial applications and
renewals effective July 1, 2007;
    (11) provide technical support and assistance to voluntary joint labor-management
committees established for the purpose of improving relationships between exclusive
representatives and employers, at the discretion of the commissioner;
    (12) provide to the parties a list of arbitrators as required by section 179A.16,
subdivision 4
; and
    (13) maintain a list of up to 60 arbitrators for referral to employers and exclusive
representatives for the resolution of grievance or interest disputes. Each person on the
list must be knowledgeable about collective bargaining and labor relations in the public
sector, well versed in state and federal labor law, and experienced in and knowledgeable
about labor arbitration. To the extent practicable, the commissioner shall appoint members
to the list so that the list is gender and racially diverse.
    (b) From the names provided by representative organizations, the commissioner
shall maintain a list of arbitrators to conduct teacher discharge or termination hearings
according to section 122A.40 or 122A.41. The persons on the list must meet at least
one of the following requirements:
    (1) be a former or retired judge;
    (2) be a qualified arbitrator on the list maintained by the bureau;
    (3) be a present, former, or retired administrative law judge; or
    (4) be a neutral individual who is learned in the law and admitted to practice in
Minnesota, who is qualified by experience to conduct these hearings, and who is without
bias to either party.
    Each year, education Minnesota shall provide a list of up to 14 names and the
Minnesota School Boards Association a list of up to 14 names of persons to be on the list.
The commissioner may adopt rules about maintaining and updating the list.

    Sec. 21. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE
PRESENCE OF LIQUOR.
    No minor under the age of 18 shall be employed in any rooms constituting the place
in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any
tasks involving the serving, dispensing, or handling of such liquors that are consumed on
the premises except that:
    (1) minors who have reached the age of 16 may be employed to perform busing,
dishwashing, or hosting services in those rooms or areas of a restaurant, hotel, motel, or
resort where the presence of intoxicating liquor is incidental to food service or preparation;
    (2) minors who have reached the age of 16 may be employed to perform busing,
dishwashing, or hosting services or to provide waiter or waitress service in rooms or areas
where the presence of 3.2 percent malt liquor is incidental to food service or preparation;
    (3) minors who have reached the age of 16 may be employed to provide musical
entertainment in those rooms or areas where the presence of intoxicating liquor and 3.2
percent malt liquor is incidental to food service or preparation; and
    (4) minors are not prevented from working at tasks which are not prohibited by law
in establishments where liquor is sold, served, dispensed, or handled in those rooms or
areas where no liquor is consumed or served.

    Sec. 22. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:
    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on
employers and employees of this state resulting from personal injuries and illnesses arising
out of work situations is substantial; that the prevention of these injuries and illnesses is an
important objective of the government of this state; that the greatest hope of attaining this
objective lies in programs of research and education, and in the earnest cooperation of
government, employers and employees; and that a program of regulation and enforcement
is a necessary supplement to these more basic programs.
    The legislature declares it to be its purpose and policy through the exercise of its
powers to assure so far as possible every worker in the state of Minnesota safe and
healthful working conditions and to preserve our human resources by:
    (a) authorizing the Occupational Safety and Health Advisory Council to advise,
consult with or recommend on any matters relating to the Minnesota occupational
safety and health plan to the commissioner of labor and industry and by authorizing the
commissioner of labor and industry to promulgate and enforce mandatory occupational
safety and health standards applicable to employers and employees in the state of
Minnesota;
    (b) encouraging employers and employees to increase their efforts to reduce the
number of occupational safety and health hazards at their places of employment, and to
stimulate employers and employees to institute new and to perfect existing programs for
providing safe and healthful working conditions;
    (c) providing that employers and employees have separate but dependent
responsibilities and rights with respect to achieving safe and healthful working conditions;
    (d) providing for research in the field of occupational safety and health; including
the psychological factors involved, and by developing innovative methods, techniques,
and approaches for dealing with occupational safety and health problems;
    (e) exploring ways to discover latent diseases, establishing causal connections
between diseases and work in environmental conditions, and conducting other research
relating to health problems, in recognition of the fact that occupational health standards
present problems often different from those involved in occupational safety;
    (f) utilizing advances already made by federal laws and regulations providing safe
and healthful working conditions;
    (g) providing criteria which will assure insofar as practicable that no employee
will suffer diminished health, functional capacity, or life expectancy as a result of work
experience;
    (h) providing an effective enforcement program which shall include locating
enforcement personnel in areas of the state with a higher incidence of workplace fatalities,
injuries, and complaints and a prohibition against giving advance notice of an inspection
and sanctions for any individual violating this prohibition;
    (i) providing for appropriate reporting procedures with respect to occupational
safety and health, which procedures will help achieve the objectives of this chapter and
accurately describe the nature of the occupational safety and health problem;
    (j) encouraging joint labor-management efforts to reduce injuries and diseases
arising out of employment;
    (k) providing consultation to employees and employers which will aid them in
complying with their responsibilities under this chapter where such consultation does not
interfere with the effective enforcement of this chapter; and
    (l) providing for training programs to increase the number and competence of
personnel engaged in the field of occupational safety and health.

    Sec. 23. [182.6551] CITATION.
    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."

    Sec. 24. [182.6552] DEFINITIONS.
    Subdivision 1. Direct patient care worker. "Direct patient care worker" means an
individual doing the job of directly providing physical care to patients including nurses, as
defined by section 148.171, who provide physical care to patients.
    Subd. 2. Health care facility. "Health care facility" means a hospital as defined in
section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55,
subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.
    Subd. 3. Safe patient handling. "Safe patient handling" means a process, based on
scientific evidence on causes of injuries, that uses safe patient handling equipment rather
than people to transfer, move, and reposition patients in all health care facilities to reduce
workplace injuries. This process also reduces the risk of injury to patients.
    Subd. 4. Safe patient handling equipment. "Safe patient handling equipment"
means engineering controls, lifting and transfer aids, or mechanical assistive devices used
by nurses and other direct patient care workers instead of manual lifting to perform the
acts of lifting, transferring, and repositioning health care facility patients and residents.

    Sec. 25. [182.6553] SAFE PATIENT HANDLING PROGRAM.
    Subdivision 1. Safe patient handling program required. (a) By July 1, 2008,
every licensed health care facility in the state shall adopt a written safe patient handling
policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing
manual lifting of patients by nurses and other direct patient care workers by utilizing
safe patient handling equipment.
    (b) The program shall address:
    (1) assessment of hazards with regard to patient handling;
    (2) the acquisition of an adequate supply of appropriate safe patient handling
equipment;
    (3) initial and ongoing training of nurses and other direct patient care workers on
the use of this equipment;
    (4) procedures to ensure that physical plant modifications and major construction
projects are consistent with program goals; and
    (5) periodic evaluations of the safe patient handling program.
    Subd. 2. Safe patient handling committee. (a) By July 1, 2008, every licensed
health care facility in the state shall establish a safe patient handling committee either by
creating a new committee or assigning the functions of a safe patient handling committee
to an existing committee.
    (b) Membership of a safe patient handling committee or an existing committee must
meet the following requirements:
    (1) at least half the members shall be nonmanagerial nurses and other direct patient
care workers; and
    (2) in a health care facility where nurses and other direct patient care workers
are covered by a collective bargaining agreement, the union shall select the committee
members proportionate to its representation of nonmanagerial workers, nurses, and other
direct patient care workers.
    (c) A health care organization with more than one covered health care facility may
establish a committee at each facility or one committee to serve this function for all the
facilities. If the organization chooses to have one overall committee for multiple facilities,
at least half of the members of the overall committee must be nonmanagerial nurses and
other direct patient care workers and each facility must be represented on the committee.
    (d) Employees who serve on a safe patient handling committee must be compensated
by their employer for all hours spent on committee business.
    Subd. 3. Facilities with existing programs. A facility that has already adopted a
safe patient handling policy that satisfies the requirements of subdivision 1, and established
a safe patient handling committee by July 1, 2008, is considered to be in compliance
with those requirements. The committee must continue to satisfy the requirements of
subdivision 2, paragraph (b), on an ongoing basis.
    Subd. 4. Committee duties. A safe patient handling committee shall:
    (1) complete a patient handling hazard assessment that:
    (i) considers patient handling tasks, types of nursing units, patient populations, and
the physical environment of patient care areas;
    (ii) identifies problems and solutions;
    (iii) identifies areas of highest risk for lifting injuries; and
    (iv) recommends a mechanism to report, track, and analyze injury trends;
    (2) make recommendations on the purchase, use, and maintenance of an adequate
supply of appropriate safe patient handling equipment;
    (3) make recommendations on training of nurses and other direct patient care
workers on use of safe patient handling equipment, initially when the equipment arrives at
the facility and periodically afterwards;
    (4) conduct annual evaluations of the safe patient handling implementation plan and
progress toward goals established in the safe patient handling policy; and
    (5) recommend procedures to ensure that, when remodeling of patient care areas
occurs, the plans incorporate safe patient handling equipment or the physical space and
construction design needed to accommodate safe patient handling equipment at a later date.
    Subd. 5. Training materials. The commissioner shall make training materials on
implementation of this section available to all health care facilities at no cost as part of the
training and education duties of the commissioner under section 182.673.
    Subd. 6. Enforcement. This section shall be enforced by the commissioner under
section 182.661. A violation of this section is subject to the penalties provided under
section 182.666.
    Subd. 7. Grant program. The commissioner may make grants to health care
facilities to acquire safe patient handling equipment and for training on safe patient
handling and safe patient handling equipment. Grants to any one facility may not exceed
$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The
commissioner shall establish a grant application process. The commissioner may give
priority for grants to facilities that demonstrate that acquiring safe patient handling
equipment will impose a financial hardship on the facility. For health care facilities
that provide evidence of hardship, the commissioner may waive the 50 percent match
requirement and may grant such a facility more than $40,000. Health care facilities that
the commissioner determines are experiencing hardship shall not be required to meet the
safe patient handling requirements until July 1, 2012.

    Sec. 26. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision
to read:
    Subd. 4. Unemployment insurance benefits telephone system. The commissioner
must ensure that the telephone system used for unemployment insurance benefits provides
an option for any caller to speak to an unemployment insurance specialist. An individual
who calls any of the publicized telephone numbers seeking information about applying for
benefits or on the status of a claim must have the option to speak on the telephone to a
specialist who can provide direct assistance or can direct the caller to the person or office
that is able to respond to the caller's needs.

    Sec. 27. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:
    Subd. 13. Supported employment. (a) "Supported employment" means
employment of a person with a disability so severe that the person needs ongoing training
and support to get and keep a job in which:
    (1) the person engages in paid work in a position removed from the service vendor's
site where individuals without disabilities who do not require public subsidies also may
be employed;
    (2) public funds are necessary to provide ongoing training and support services
throughout the period of the person's employment; and
    (3) the person has the opportunity for social interaction with individuals who do not
have disabilities and who are not paid caregivers.
    (b) If the commissioner has certified a rehabilitation facility setting as integrated,
then employment at that site may be considered supported employment.

    Sec. 28. Minnesota Statutes 2006, section 268A.01, is amended by adding a
subdivision to read:
    Subd. 14. Affirmative business enterprise employment. "Affirmative business
enterprise employment" means employment which provides paid work on the premises of
an affirmative business enterprise as certified by the commissioner.
    Affirmative business enterprise employment is considered community employment
for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided
that the wages for individuals reported must be at or above customary wages for the
same employer. The employer must also provide one benefit package that is available to
all employees.

    Sec. 29. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:
    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit
corporation, or combination thereof establishing a rehabilitation facility shall appoint a
rehabilitation facility board of no fewer than nine seven voting members before becoming
eligible for the assistance provided by sections 268A.06 to 268A.15. When any city,
town, or county singly establishes such a rehabilitation facility, the board shall be
appointed by the chief executive officer of the city or the chair of the governing board
of the county or town. When any combination of cities, towns, counties, or nonprofit
corporations establishes a rehabilitation facility, the chief executive officers of the cities,
nonprofit corporations, and the chairs of the governing bodies of the counties or towns
shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation
facility, the corporation shall appoint the board of directors. Membership on a board
shall be representative of the community served and shall include a person with a
disability. One-third to one-half of the board shall be representative of industry or
business. The remaining members should be representative of lay associations for persons
with a disability, labor, the general public, and education, welfare, medical, and health
professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude
the appointment of elected or appointed public officials or members of the board of
directors of the sponsoring nonprofit corporation to the board, so long as the representation
described above is preserved. If a county establishes an extended employment program
and manages the program with county employees, the governing board shall be the county
board of commissioners, and other provisions of this chapter pertaining to membership on
the governing board do not apply.

    Sec. 30. Minnesota Statutes 2006, section 268A.15, is amended by adding a
subdivision to read:
    Subd. 9. Integrated setting. At the commissioner's discretion, paid work on the
premises of a rehabilitation facility may be certified as an integrated setting after a site
review by the department.

    Sec. 31. [325E.60] RESTROOM ACCESS.
    Subdivision 1. Short title. This section may be cited as the Restroom Access Act.
    Subd. 2. Definitions. For purposes of this section:
    (a) "Customer" means an individual who is lawfully on the premises of a retail
establishment.
    (b) "Eligible medical condition" means Crohn's disease, ulcerative colitis, any other
inflammatory bowel disease, irritable bowel syndrome, or any other medical condition
that requires immediate access to a restroom facility.
    (c) "Retail establishment" means a place of business open to the general public for
the sale of goods or services. Retail establishment does not include a filling station or
service station with a structure of 800 square feet or less that has an employee restroom
facility located within that structure.
    Subd. 3. Retail establishment; customer access to restroom facilities. A retail
establishment that has a restroom facility for its employees shall allow a customer to
use that facility during normal business hours if the restroom facility is reasonably safe
and all of the following conditions are met:
    (1) the customer requesting the use of the employee restroom facility suffers from an
eligible medical condition or uses an ostomy device, provided that the existence of the
condition or device is documented in writing by the customer's physician or a nonprofit
organization whose purpose includes serving individuals who suffer from the condition;
    (2) three or more employees of the retail establishment are working at the time the
customer requests use of the employee restroom facility;
    (3) the retail establishment does not normally make a restroom available to the
public;
    (4) the employee restroom facility is not located in an area where providing access
would create an obvious health or safety risk to the customer or an obvious security risk
to the establishment; and
    (5) a public restroom is not immediately accessible to the customer.
    Subd. 4. Liability. (a) A retail establishment or an employee of a retail
establishment is not civilly liable for an act or omission in allowing a customer who
claims to have an eligible medical condition to use an employee restroom facility that is
not a public restroom if the act or omission:
    (1) is not negligent;
    (2) occurs in an area of the retail establishment that is not accessible to the public; and
    (3) results in an injury to or death of the customer or an individual other than an
employee accompanying the customer.
    (b) This section does not require a retail establishment to make any physical changes
to an employee restroom facility.
    Subd. 5. Violation. For a first violation of this section, the city or county attorney
shall issue a warning letter to the retail establishment or employee informing the
establishment or employee of the requirements of this section. A retail establishment or an
employee of a retail establishment that violates this section after receiving a warning letter
is guilty of a petty misdemeanor. The fine for a first offense must not exceed $50.

    Sec. 32. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision
to read:
    Subd. 5. Local planning assistance. A regional development commission or,
in regions not served by regional development commissions, a regional organization
selected by the commissioner of employment and economic development, may develop a
program to support planning on behalf of local units of government. The local planning
must be related to issues of regional or statewide significance and may include, but is not
limited to, the following:
    (1) local planning and development assistance, which may include local zoning
ordinances and land use plans;
    (2) community or economic development plans, which may include workforce
development plans, housing development plans and market analysis, JOBZ administration,
grant writing assistance, and grant administration;
    (3) environment and natural resources plans, which may include solid waste
management plans, wastewater management plans, and renewable energy development
plans;
    (4) rural community health services; and
    (5) development of geographical information systems to serve regional needs,
including hardware and software purchases and related labor costs.
    Each regional development commission or organization shall submit to the
commissioner of employment and economic development an annual work program
that outlines the work items for the upcoming year and establishes the relationship of
the work items to development issues of regional or statewide significance. The entity
completing the annual work program and identifying the statewide development issues
shall consider input from the Departments of Employment and Economic Development,
Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as
appropriate to the issues.

    Sec. 33. Minnesota Statutes 2006, section 469.334, is amended to read:
469.334 DESIGNATION OF ZONE.
    Subdivision 1. Commissioner to designate. (a) The commissioner, in consultation
with the commissioner of revenue and the director of the Office of Strategic and
Long-Range Planning, shall may designate one or more biotechnology and health sciences
industry zones. Priority must be given to applicants with a development plan that links a
higher education/research institution with a biotechnology and health sciences industry
facility.
    (b) The commissioner may consult with the applicant prior to the designation of the
zone. The commissioner may modify the development plan, including the boundaries
of the zone or subzones, if in the commissioner's opinion a modified plan would better
meet the objectives of the biotechnology and health sciences industry zone program. The
commissioner shall notify the applicant of the modifications and provide a statement of
the reasons for the modifications.
    Subd. 2. Need indicators. (a) In evaluating applications to determine the need for
designation of a biotechnology and health sciences industry zone, the commissioner shall
consider the following factors as indicators of need:
    (1) the extent to which land in proximity to a significant scientific research institution
could be developed as a higher and better use for biotechnology and health sciences
industry facilities;
    (2) the amount of property in or near the zone that is deteriorated or underutilized;
and
    (3) the extent to which property in the area would remain underdeveloped or
nonperforming due to physical characteristics.
    (b) The commissioner may require applicants to provide data to demonstrate how
the area meets one or more of the indicators of need.
    Subd. 3. Success indicators. In determining the likelihood of success of a proposed
zone, the commissioner shall consider:
    (1) applicants that show a viable link between a higher education/research institution,
the biotechnology and/or medical devices business sectors, and one or more units of
local government with a development plan;
    (2) the extent to which the area has substantial real property with adequate
infrastructure and energy to support new or expanded development;
    (3) the strength and viability of the proposed development goals, objectives, and
strategies in the development plan;
    (4) whether the development plan is creative and innovative in comparison to
other applications;
    (5) local public and private commitment to development of a biotechnology and
health sciences industry facility or facilities in the proposed zone and the potential
cooperation of surrounding communities;
    (6) existing resources available to the proposed zone;
    (7) how the designation of the zone would relate to other economic and community
development projects and to regional initiatives or programs;
    (8) how the regulatory burden will be eased for biotechnology and health sciences
industry facilities located in the proposed zone;
    (9) proposals to establish and link job creation and job training in the biotechnology
and health sciences industry with research/educational institutions; and
    (10) the extent to which the development is directed at encouraging, and that
designation of the zone is likely to result in, the creation of high-paying jobs.
    Subd. 4. Designation schedule. (a) The schedule in paragraphs (b) to (e) applies to
the designation of the first biotechnology and health sciences industry zone.
    (b) The commissioner shall publish the form for applications and any procedural,
form, or content requirements for applications by no later than August 1, 2003. The
commissioner may publish these requirements on the Internet, in the State Register, or by
any other means the commissioner determines appropriate to disseminate the information
to potential applicants for designation.
    (c) Applications must be submitted by October 15, 2003.
    (d) The commissioner shall designate the zones by no later than December 31, 2003.
    (e) The designation of the zones takes effect January 1, 2004.
    (f) Additional zones may be designated in later years, following substantially the
same application and designation process as provided in paragraphs (b) to (e) only after
the commissioner of employment and economic development has established criteria for
expanding the number of zones. The criteria must limit designating a new zone to a
community that has adequate resources and infrastructure to support bioindustry, including
postsecondary institutions, strong health care systems, and existing bioscience companies.
It must also require that a new zone be located on a transportation corridor.

    Sec. 34. WORKFORCE ENHANCEMENT FEE.
    If the commissioner of employment and economic development determines that
the need for services under the dislocated worker program substantially exceeds the
resources that will be available for the program, the commissioner may increase the
special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no
more than .12 percent of taxable wages.

    Sec. 35. WORKING GROUP ON STATE ROLE IN TRADE POLICY.
    Subdivision 1. Work group members. The Department of Employment and
Economic Development must convene a working group to develop recommendations for
establishing policies and procedures regarding the role of the state in federal trade policy
and trade agreements. The working group must be comprised of 17 members as follows:
    (1) the governor or his designee;
    (2) the commissioner of the Department of Employment and Economic Development
or his designee;
    (3) the commissioner of the Department of Agriculture or his designee;
    (4) the commissioner of the Department of Administration or his designee;
    (5) the attorney general or her designee;
    (6) two members of the Minnesota senate one of whom is appointed by the senate
majority leader and one appointed by the minority leader;
    (7) two members of the Minnesota house of representatives, one of whom is
appointed by the speaker and one appointed by the minority leader;
    (8) two members designated by the Minnesota AFL-CIO;
    (9) two members representing labor organizations other than the AFL-CIO with one
to be appointed by the speaker of the Minnesota house of representatives and one to be
appointed by the majority leader of the Minnesota senate;
    (10) two members designated by the Minnesota Chamber of Commerce; and
    (11) two members representing business organizations other than the Minnesota
Chamber of Commerce appointed by the governor.
    The Department of Employment and Economic Development must provide
administrative support to the working group.
    Subd. 2. Duties; responsibilities. The working group may obtain input from other
state and federal agencies as appropriate and may conduct public hearings to allow input
from interested stakeholders. The working group must:
    (1) determine the state's jurisdiction regarding federal trade policy and trade
agreements;
    (2) assess the state's current policies, procedures, roles and responsibilities for
providing advice and consent on federal trade policy and trade agreements;
    (3) review the current means through which the state interacts with the Office of
the United States Trade Representative (USTR) and Congress regarding trade policy and
trade agreements;
    (4) inventory the federal trade policies and trade agreements that the state of
Minnesota has formally approved or signed on to;
    (5) examine trade policy models established by other states;
    (6) develop recommendations for defining responsibilities and procedures for the
state's role in federal trade policy and trade agreements; and
    (7) prepare legislative recommendations to implement the recommendations of
the working group.
    The working group must report its findings and recommendations to the governor
and the legislature by December 1, 2007.

    Sec. 36. STUDY; SAFE PATIENT HANDLING.
    (a) The commissioner of labor and industry shall study ways to require workers'
compensation insurers to recognize compliance with Minnesota Statutes, section
182.6553, in the workers' compensation premiums of health care and long-term care
facilities. The commissioner shall report by January 15, 2008, the results of the study
to the chairs of the policy committees of the legislature with primary jurisdiction over
workers' compensation issues.
    (b) By January 15, 2008, the commissioner must make recommendations to the
legislature regarding funding sources available to health care facilities for safe patient
handling programs and equipment, including, but not limited to, low interest loans, interest
free loans, and federal, state, or county grants.

    Sec. 37. WORK GROUP; SAFE PATIENT HANDLING.
    The Minnesota State Council on Disability shall convene a work group comprised
of representatives from the Minnesota Medical Association and other organizations
representing clinics, disability advocates, and direct care workers, to do the following:
    (1) assess the current options for and use of safe patient handling equipment in
unlicensed outpatient clinics, physician offices, and dental settings;
    (2) identify barriers to the use of safe patient handling equipment in these settings;
and
    (3) define clinical settings that move patients to determine applicability of the Safe
Patient Handling Act.
    The work group must report to the legislature by January 15, 2008, including
reports to the chairs of the senate and house of representatives committees on workforce
development.

    Sec. 38. EFFECT ON RULES.
    The commissioner of labor and industry shall amend Minnesota Rules, part
5200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner
may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting
the amendment required by this section.

    Sec. 39. PUBLIC FACILITIES AUTHORITY FUNDING.
    To the greatest practical extent, projects on the Public Facilities Authority's 2007
intended use plan, the listings for which were based on the Pollution Control Agency's
2006 project priority list, shall be carried over to the 2008 intended use plan. Projects that
qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258,
section 21, that could not be certified by the Pollution Control Agency by the applicable
deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court
issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to
obtain the required certification from the Pollution Control Agency.

    Sec. 40. REPEALER.
(a) Minnesota Statutes 2006, sections 16B.747, subdivision 4; 16C.18, subdivision
2; 183.375, subdivision 5; 183.545, subdivision 9; 326.241; 326.44; 326.52; and 326.64,
are repealed.
(b) Minnesota Statutes 2006, section 326.975, is repealed effective December
1, 2007.

ARTICLE 3
LICENSING AND WAGES

    Section 1. Minnesota Statutes 2006, section 16B.63, subdivision 5, is amended to read:
    Subd. 5. Interpretative authority. To achieve uniform and consistent application
of the State Building Code, the state building official commissioner has final interpretative
authority applicable to all codes adopted as part of the State Building Code except
for the Plumbing Code and the Electrical Code when enforced by the State Board of
Electricity. A final interpretative committee composed of seven members, consisting
of three building officials, two inspectors from the affected field, and two construction
industry representatives, shall review requests for final interpretations relating to that field
for which the commissioner has final interpretative authority. A request The Plumbing
Board has final interpretative authority applicable to the state Plumbing Code and shall
review requests for final interpretation made to the board that relate to the state plumbing
code. The Board of Electricity has final interpretative authority applicable to the state
Electrical Code and shall review requests for final interpretation made to the board that
relate to the state Electrical Code. The Board of High Pressure Piping Systems has final
interpretative authority applicable to the state High Pressure Piping Code and shall review
requests for final interpretation made to the board that relate to the state high pressure
piping code. Except for requests for final interpretations that relate to the state plumbing
code, the state Electrical Code, and the state High Pressure Piping Code, requests for final
interpretation must come from a local or state level building code board of appeals. The
state building official commissioner must establish procedures for membership of the final
interpretative committees. The appropriate committee shall review the request and make
a recommendation to the state building official commissioner for the final interpretation
within 30 days of the request. The state building official commissioner must issue an a final
interpretation within ten business days from after the receipt of the recommendation from
the review final interpretative committee. A The Plumbing Board, the Board of Electricity,
or the Board of High Pressure Piping Systems shall review a request and issue a final
interpretation within 30 days of the request. Any person aggrieved by final interpretation
may be appealed appeal within 30 days of its issuance to by the commissioner under
section 16B.67 or the board in accordance with chapter 14. The final interpretation
must be published within ten business days of its issuance and made available to the
public. Municipal building officials shall administer all final interpretations issued by
the state building official commissioner until the final interpretations are considered by
the commissioner, the Plumbing Board, the Board of Electricity, or the Board of High
Pressure Piping Systems for adoption as part of the State Building Code, state Plumbing
Code, state Electrical Code, or the High Pressure Piping Code.

    Sec. 2. Minnesota Statutes 2006, section 154.003, is amended to read:
154.003 FEES.
    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
board, shall be paid to the executive secretary of the board. The executive secretary shall
deposit the fees in the general fund in the state treasury.
    (b) The board shall charge the following fees:
    (1) examination and certificate, registered barber, $65;
    (2) examination and certificate, apprentice, $60;
    (3) examination, instructor, $160;
    (4) certificate, instructor, $45;
    (5) temporary teacher or apprentice permit, $50;
    (6) renewal of license, registered barber, $50;
    (7) renewal of license, apprentice, $45;
    (8) renewal of license, instructor, $60;
    (9) renewal of temporary teacher permit, $35;
    (10) student permit, $25;
    (11) initial shop registration, $60;
    (12) initial school registration, $1,010;
    (13) renewal shop registration, $60;
    (14) renewal school registration, $260;
    (15) restoration of registered barber license, $75;
    (16) restoration of apprentice license, $70;
    (17) restoration of shop registration, $85;
    (18) change of ownership or location, $35;
    (19) duplicate license, $20; and
    (20) home study course, $75; and
    (21) registration of hair braiders, $20 per year.

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

    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:
    Subdivision 1. Examination of records. The commissioner may enter during
reasonable office hours or upon request and inspect the place of business or employment of
any employer of employees working in the state, to examine and inspect books, registers,
payrolls, and other records of any employer that in any way relate to wages, hours, and
other conditions of employment of any employees. The commissioner may transcribe any
or all of the books, registers, payrolls, and other records as the commissioner deems
necessary or appropriate and may question the employees to ascertain compliance with
sections 177.21 to 177.35 177.435. The commissioner may investigate wage claims or
complaints by an employee against an employer if the failure to pay a wage may violate
Minnesota law or an order or rule of the department.

    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:
    Subd. 4. Compliance orders. The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.35 177.435, 181.02, 181.03, 181.031,
181.032, 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, or with
any rule promulgated under section 177.28. The department shall serve the order upon
the employer or the employer's authorized representative in person or by certified mail
at the employer's place of business. An employer who wishes to contest the order must
file written notice of objection to the order with the commissioner within 15 calendar
days after being served with the order. A contested case proceeding must then be held
in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
served with the order, the employer fails to file a written notice of objection with the
commissioner, the order becomes a final order of the commissioner.

    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:
    Subd. 8. Court actions; suits brought by private parties. An employee may bring
a civil action seeking redress for a violation or violations of sections 177.21 to 177.35
177.44 directly to district court. An employer who pays an employee less than the wages
and overtime compensation to which the employee is entitled under sections 177.21 to
177.35 177.44 is liable to the employee for the full amount of the wages, gratuities, and
overtime compensation, less any amount the employer is able to establish was actually
paid to the employee and for an additional equal amount as liquidated damages. In
addition, in an action under this subdivision the employee may seek damages and other
appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement
between the employee and the employer to work for less than the applicable wage is not
a defense to the action.

    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:
    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may
be filed in the district court of the county wherein a violation or violations of sections
177.21 to 177.35 177.44 are alleged to have been committed, where the respondent resides
or has a principal place of business, or any other court of competent jurisdiction. The
action may be brought by one or more employees.

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

    Sec. 9. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:
    Subdivision 1. General authority. The commissioner may adopt rules, including
definitions of terms, to carry out the purposes of sections 177.21 to 177.35 177.44, to
prevent the circumvention or evasion of those sections, and to safeguard the minimum
wage and overtime rates established by sections 177.24 and 177.25.

    Sec. 10. Minnesota Statutes 2006, section 177.30, is amended to read:
177.30 KEEPING RECORDS; PENALTY.
    Every employer subject to sections 177.21 to 177.35 177.44 must make and keep a
record of:
    (1) the name, address, and occupation of each employee;
    (2) the rate of pay, and the amount paid each pay period to each employee;
    (3) the hours worked each day and each workweek by the employee; and
    (4) for each employer subject to sections 177.41 to 177.44, and while performing
work on public works projects funded in whole or in part with state funds, the prevailing
wage master job classification of each employee working on the project for each hour
worked; and
    (4) (5) other information the commissioner finds necessary and appropriate to
enforce sections 177.21 to 177.35. The records must be kept for three years in or near the
premises where an employee works except each employer subject to sections 177.41 to
177.44, and while performing work on public works projects funded in whole or in part
with state funds, the records must be kept for three years after the contracting authority
has made final payment on the public works project.
    The commissioner may fine an employer up to $1,000 for each failure to maintain
records as required by this section. This penalty is in addition to any penalties provided
under section 177.32, subdivision 1. In determining the amount of a civil penalty under
this subdivision, the appropriateness of such penalty to the size of the employer's business
and the gravity of the violation shall be considered.

    Sec. 11. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:
    Subd. 3. Contract requirements. The contract must specifically state the prevailing
wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also
provide that the contracting agency shall demand, and the contractor and subcontractor
shall furnish to the contracting agency, copies of any or all payrolls not more than 14 days
after the end of each pay period. The payrolls must contain all the data required by section
177.30. The contracting authority may examine all records relating to wages paid laborers
or mechanics on work to which sections 177.41 to 177.44 apply.

    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:
    Subd. 4. Determination by commissioner; posting; petition for reconsideration.
    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all
trades and occupations required in any project must be ascertained before the state asks for
bids. The commissioner of labor and industry shall investigate as necessary to ascertain
the information. The commissioner Each contractor and subcontractor performing work
on a public project shall keep the information posted on the project in at least one
conspicuous place for the information of the employees working on the project. A person
aggrieved by a final determination of the commissioner may petition the commissioner for
reconsideration of findings. A person aggrieved by a decision of the commissioner after
reconsideration may, within 20 days after the decision, petition the commissioner for a
public hearing in the manner of a contested case under sections 14.57 to 14.61.

    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:
    Subd. 6. Examination of records; investigation by the department. The
Department of Labor and Industry shall enforce this section. The department may
demand, and the contractor and subcontractor shall furnish to the department, copies
of any or all payrolls. The department may examine all records relating to wages paid
laborers or mechanics on work to which sections 177.41 to 177.44 apply. The department
shall employ at least three investigators to perform on-site project reviews, receive and
investigate complaints of violations of this section, and conduct training and outreach to
contractors and contracting authorities for public works projects financed in whole or
in part with state funds.

    Sec. 14. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision
to read:
    Subd. 6a. Prevailing wage violations. Upon issuing a compliance order to an
employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to
177.44, the commissioner shall issue a withholding order to the contracting authority
ordering the contracting authority to withhold payment of sufficient sum to the prime
or general contractor on the project to satisfy the back wages assessed or otherwise
cure the violation, and the contracting authority must withhold the sum ordered until
the compliance order has become a final order of the commissioner and has been fully
paid or otherwise resolved by the employer.
    During an investigation of a violation of sections 177.41 to 177.44 which the
commissioner reasonably determines is likely to result in the finding of a violation of
sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section
177.27, subdivision 4, the commissioner may notify the contracting authority of the
determination and the amount expected to be assessed and the contracting authority shall
give the commissioner 90 days' prior notice of the date the contracting authority intends to
make final payment.

    Sec. 15. [181.723] INDEPENDENT CONTRACTORS.
    Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
    (a) "Person" means any individual, limited liability corporation, corporation,
partnership, incorporated or unincorporated association, sole proprietorship, joint stock
company, or any other legal or commercial entity.
    (b) "Department" means the Department of Labor and Industry.
    (c) "Commissioner" means the commissioner of labor and industry or a duly
designated representative of the commissioner who is either an employee of the
Department of Labor and Industry or person working under contract with the Department
of Labor and Industry.
    (d) "Individual" means a human being.
    (e) "Day" means calendar day unless otherwise provided.
    (f) "Knowingly" means knew or could have known with the exercise of reasonable
diligence.
    (g) "Document" or "documents" includes papers; books; records; memoranda; data;
contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings;
records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars
maintained in any form or manner.
    Subd. 2. Limited application. This section only applies to individuals performing
public or private sector commercial or residential building construction or improvement
services, as defined in section 326.83.
    Subd. 3. Employee-employer relationship. Except as provided in subdivision
4, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an
individual who performs services for a person that are in the course of the person's trade,
business, profession, or occupation is an employee of that person and that person is an
employer of the individual.
    Subd. 4. Independent contractor. An individual is an independent contractor and
not an employee of the person for whom the individual is performing services in the course
of the person's trade, business, profession, or occupation only if (1) the individual holds
a current independent contractor exemption certificate issued by the commissioner; and
(2) the individual is performing services for the person under the independent contractor
exemption certificate as provided in subdivision 6. The requirements in clauses (1) and (2)
must be met in order to qualify as an independent contractor and not as an employee of
the person for whom the individual is performing services in the course of the person's
trade, business, profession, or occupation.
    Subd. 5. Application. To obtain an independent contractor exemption certificate,
the individual must submit, in the manner prescribed by the commissioner, a complete
application and the certificate fee required under subdivision 14.
    (a) A complete application must include all of the following information:
    (1) the individual's full name;
    (2) the individual's residence address and telephone number;
    (3) the individual's business name, address, and telephone number;
    (4) the services for which the individual is seeking an independent contractor
exemption certificate;
    (5) the individual's Social Security number;
    (6) the individual's or the individual's business federal employer identification
number, if a number has been issued to the individual or the individual's business;
    (7) any information or documentation that the commissioner requires by rule that
will assist the department in determining whether to grant or deny the individual's
application; and
    (8) the individual's sworn statement that the individual meets all of the following
conditions:
    (i) maintains a separate business with the individual's own office, equipment,
materials, and other facilities;
    (ii) holds or has applied for a federal employer identification number or has filed
business or self-employment income tax returns with the federal Internal Revenue Service
if the person has performed services in the previous year for which the individual is
seeking the independent contractor exemption certificate;
    (iii) operates under contracts to perform specific services for specific amounts of
money and under which the individual controls the means of performing the services;
    (iv) incurs the main expenses related to the service that the individual performs
under contract;
    (v) is responsible for the satisfactory completion of services that the individual
contracts to perform and is liable for a failure to complete the service;
    (vi) receives compensation for service performed under a contract on a commission
or per-job or competitive bid basis and not on any other basis;
    (vii) may realize a profit or suffer a loss under contracts to perform service;
    (viii) has continuing or recurring business liabilities or obligations; and
    (ix) the success or failure of the individual's business depends on the relationship of
business receipts to expenditures.
    (b) Individuals who are applying for or renewing a residential building contractor
or residential remodeler license under sections 326.83 to 326.992 and any rules
promulgated pursuant thereto may simultaneously apply for or renew an independent
contractor exemption certificate. The commissioner shall create an application form
that allows for the simultaneous application for both a residential building contractor
or residential remodeler license and an independent contractor exemption certificate.
If individuals simultaneously apply for or renew a residential building contractor or
residential remodeler license and an independent contractor exemption certificate using
the form created by the commissioner, individuals shall only be required to provide, in
addition to the information required by section 326.89 and rules promulgated pursuant
thereto, the sworn statement required by paragraph (a), clause (8), and any additional
information required by this subdivision that is not also required by section 326.89 and
any rules promulgated thereto. When individuals submit a simultaneous application on the
form created by the commissioner for both a residential building contractor or residential
remodeler license and an independent contractor exemption certificate, the application
fee shall be $150. An independent contractor exemption certificate that is in effect
before March 1, 2009, shall remain in effect until March 1, 2011, unless revoked by the
commissioner or cancelled by the individual.
    (c) Within 30 days of receiving a complete application and the certificate fee, the
commissioner must either grant or deny the application. The commissioner may deny
an application for an independent contractor exemption certificate if the individual has
not submitted a complete application and certificate fee or if the individual does not
meet all of the conditions for holding the independent contractor exemption certificate.
The commissioner may revoke an independent contractor exemption certificate if the
commissioner determines that the individual no longer meets all of the conditions for
holding the independent contractor exemption certificate, commits any of the actions
set out in subdivision 7, or fails to cooperate with a department investigation into the
continued validity of the individual's certificate. Once issued, an independent contractor
exemption certificate remains in effect for two years unless:
    (1) revoked by the commissioner; or
    (2) canceled by the individual.
    (d) If the department denies an individual's original or renewal application for
an independent contractor exemption certificate or revokes an independent contractor
exemption certificate, the commissioner shall issue to the individual an order denying or
revoking the certificate. The commissioner may issue an administrative penalty order to
an individual or person who commits any of the actions set out in subdivision 7.
    (e) An individual or person to whom the commissioner issues an order under
paragraph (d) shall have 30 days after service of the order to request a hearing. The
request for hearing must be in writing and must be served on or faxed to the commissioner
at the address or facsimile number specified in the order by the 30th day after service of
the order. If the individual does not request a hearing or if the individual's request for a
hearing is not served on or faxed to the commissioner by the 30th day after service of the
order, the order shall become a final order of the commissioner and will not be subject to
review by any court or agency. The date on which a request for hearing is served by mail
shall be the postmark date on the envelope in which the request for hearing is mailed. If
the individual serves or faxes a timely request for hearing, the hearing shall be a contested
case hearing and shall be held in accordance with chapter 14.
    Subd. 6. Performing services under exemption certificate. An individual is
performing services for a person under an independent contractor exemption certificate if:
    (a) the individual is performing services listed on the individual's independent
contractor exemption certificate; and
    (b) at the time the individual is performing services listed on the individual's
independent contractor exemption certificate, the individual meets all of the following
conditions:
    (1) maintains a separate business with the individual's own office, equipment,
materials, and other facilities;
    (2) holds or has applied for a federal employer identification number or has filed
business or self-employment income tax returns with the federal Internal Revenue Service
if the individual performed services in the previous year for which the individual has the
independent contractor exemption certificate;
    (3) is operating under contract to perform the specific services for the person
for specific amounts of money and under which the individual controls the means of
performing the services;
    (4) is incurring the main expenses related to the services that the individual is
performing for the person under the contract;
    (5) is responsible for the satisfactory completion of the services that the individual
has contracted to perform for the person and is liable for a failure to complete the services;
    (6) receives compensation from the person for the services performed under the
contract on a commission or per-job or competitive bid basis and not on any other basis;
    (7) may realize a profit or suffers a loss under the contract to perform services for
the person;
    (8) has continuing or recurring business liabilities or obligations; and
    (9) the success or failure of the individual's business depends on the relationship of
business receipts to expenditures.
    Subd. 7. Prohibited activities. (a) An individual shall not:
    (1) perform work as an independent contractor who meets the qualifications under
subdivision 6 without first obtaining from the department an independent contractor
exemption certificate;
    (2) perform work as an independent contractor when the department has denied or
revoked the individual's independent contractor exemption certificate;
    (3) transfer to another individual or allow another individual to use the individual's
independent contractor exemption certificate;
    (4) alter or falsify an independent contractor exemption certificate;
    (5) misrepresent the individual's status as an independent contractor; or
    (6) make a false material statement, representation, or certification; omit material
information; or alter, conceal, or fail to file a document required by this section or any rule
promulgated by the commissioner under rulemaking authority set out in this section.
    (b) A person shall not:
    (1) require an individual through coercion, misrepresentation, or fraudulent means to
adopt independent contractor status;
    (2) knowingly misrepresent that an individual who has not been issued an
independent contractor exemption certificate or is not performing services for the person
under an independent contractor exemption certificate is an independent contractor; or
    (3) make a false material statement, representation, or certification; omit material
information; or alter, conceal, or fail to file a document required by this section or any rule
promulgated by the commissioner under rulemaking authority set out in this section.
    (c) A person for whom an individual is performing services must obtain a copy of the
individual's independent contractor exemption certificate before services may commence.
A copy of the independent contractor exemption certificate must be retained for five years
from the date of receipt by the person for whom an individual is performing services.
    Subd. 8. Remedies. An individual or person who violates any provision of
subdivision 7 is subject to a penalty to be assessed by the department of up to $5,000 for
each violation. The department shall deposit penalties in the assigned risk safety account.
    Subd. 9. Commissioner's powers. (a) In order to carry out the purposes of this
section, the commissioner may:
    (1) administer oaths and affirmations, certify official acts, interview, question, take
oral or written statements, and take depositions;
    (2) request, examine, take possession of, photograph, record, and copy any
documents, equipment, or materials;
    (3) at a time and place indicated by the commissioner, request persons to appear
before the commissioner to give testimony and produce documents, equipment, or
materials;
    (4) issue subpoenas to compel persons to appear before the commissioner to give
testimony and produce documents, equipment, or materials; and
    (5) subject to paragraph (c), with or without notice, enter without delay upon
any property, public or private, for the purpose of taking any action authorized under
this subdivision or the applicable law, including obtaining information or conducting
inspections or investigations.
    (b) Persons requested by the commissioner to give testimony or produce documents,
equipment, or materials shall respond within the time and in the manner specified by the
commissioner. If no time to respond is specified in the request, then a response shall be
submitted within 30 days of the commissioner's service of the request.
    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property
owner's representative, or lessee's representative to permit the commissioner's entry onto
property as provided in paragraph (a), the commissioner may apply for an administrative
inspection order in the Ramsey County District Court or, at the commissioner's discretion,
in the district court in the county in which the property is located. The commissioner may
anticipate that a property owner or lessee will refuse entry if the property owner, lessee,
property owner's representative, or lessee's representative has refused to permit entry on a
prior occasion or has informed the commissioner that entry will be refused. Upon showing
of administrative probable cause by the commissioner, the district court shall issue an
administrative inspection order that compels the property owner or lessee to permit the
commissioner to enter the property for the purposes specified in paragraph (a).
    (d) Upon the application of the commissioner, a district court shall treat the failure of
any person to obey a subpoena lawfully issued by the commissioner under this subdivision
as a contempt of court.
    Subd. 10. Notice requirements. Unless otherwise specified, service of a document
on a person under this section may be by mail, by personal service, or in accordance with
any consent to service filed with the commissioner. Service by mail shall be accomplished
in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service
shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550,
subpart 3.
    Subd. 11. Facsimile; timely service. When this section permits a request for
hearing to be served by facsimile on the commissioner, the facsimile shall not exceed 15
pages in length. The request shall be considered timely served if the facsimile is received
by the commissioner, at the facsimile number identified by the commissioner in the order,
no later than 4:30 p.m. central time on the last day permitted for faxing the request.
Where the quality or authenticity of the faxed request is at issue, the commissioner
may require the original request to be filed. Where the commissioner has not identified
quality or authenticity of the faxed request as an issue and the request has been faxed in
accordance with this subdivision, the person faxing the request does not need to file the
original request with the commissioner.
    Subd. 12. Time period computation. In computing any period of time prescribed
or allowed by this section, the day of the act, event, or default from which the designated
period of time begins to run shall not be included. The last day of the period so computed
shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the
period runs until the next day which is not a Saturday, Sunday, or legal holiday.
    Subd. 13. Rulemaking. The commissioner may, in consultation with the
commissioner of revenue and the commissioner of employment and economic
development, adopt, amend, suspend, and repeal rules under the rulemaking provisions
of chapter 14 that relate to the commissioner's responsibilities under this section. This
subdivision is effective the day following final enactment.
    Subd. 14. Fee. The certificate fee for the original application and for the renewal of
an independent contractor exemption certificate shall be $150.
    Subd. 15. Notice to commissioner; review by commissioner of revenue. When
the commissioner has reason to believe that an individual who holds a certificate has failed
to maintain all the conditions required by subdivision 6 or is not performing services for a
person under the independent contractor exemption certificate, the commissioner must
notify the commissioner of revenue and the commissioner of employment and economic
development. Upon receipt of notification from the commissioner that an individual who
holds a certificate has failed to maintain all the conditions required by subdivision 6
or is not performing services for a person under the independent contractor exemption
certificate, the commissioner of revenue must review the information returns required
under section 6041A of the Internal Revenue Code. The commissioner of revenue shall
also review the submitted certification that is applicable to returns audited or investigated
under section 289A.35.
    Subd. 16. Data classified. Data in applications for an independent contractor
exemption certificate and any required documentation submitted to the commissioner are
private data on individuals as defined in section 13.02. Data in exemption certificates
issued by the commissioner are public data. Data that document a revocation or
cancellation of an exemption certificate are public data. Upon request of the Department
of Revenue or Department of Employment and Economic Development, the commissioner
may release to the requesting department data classified as private under this subdivision
or investigative data that are not public under section 13.39 that relate to the issuance or
denial of applications or revocations of certificates.
EFFECTIVE DATE.This section is effective July 1, 2008.

    Sec. 16. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:
    Subdivision 1. Prohibited action. An employer shall not discharge, discipline,
threaten, otherwise discriminate against, or penalize an employee regarding the employee's
compensation, terms, conditions, location, or privileges of employment because:
    (a) the employee, or a person acting on behalf of an employee, in good faith, reports
a violation or suspected violation of any federal or state law or rule adopted pursuant to
law to an employer or to any governmental body or law enforcement official;
    (b) the employee is requested by a public body or office to participate in an
investigation, hearing, inquiry;
    (c) the employee refuses an employer's order to perform an action that the employee
has an objective basis in fact to believe violates any state or federal law or rule or
regulation adopted pursuant to law, and the employee informs the employer that the order
is being refused for that reason; or
    (d) the employee, in good faith, reports a situation in which the quality of health care
services provided by a health care facility, organization, or health care provider violates a
standard established by federal or state law or a professionally recognized national clinical
or ethical standard and potentially places the public at risk of harm.; or
    (e) a public employee communicates the findings of a scientific or technical study
that the employee, in good faith, believes to be truthful and accurate, including reports to a
governmental body or law enforcement official.
The disclosures protected pursuant to this section do not authorize the disclosure of data
otherwise protected by law.

    Sec. 17. Minnesota Statutes 2006, section 181.935, is amended to read:
181.935 INDIVIDUAL REMEDIES; PENALTY.
    (a) In addition to any remedies otherwise provided by law, an employee injured by
a violation of section 181.932 may bring a civil action to recover any and all damages
recoverable at law, together with costs and disbursements, including reasonable attorney's
fees, and may receive such injunctive and other equitable relief as determined by the court.
    (b) An employer who failed to notify, as required under section 181.933 or 181.934,
an employee injured by a violation of section 181.932 is subject to a civil penalty of $25
per day per injured employee not to exceed $750 per injured employee.
    (c) If the district court determines that a violation of section 181.932 occurred,
the court may order any appropriate relief, including but not limited to reinstatement,
back-pay, restoration of lost service credit, if appropriate, compensatory damages, and the
expungement of any adverse records of an employee who was the subject of the alleged
acts of misconduct.

    Sec. 18. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:
    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who,
during some part of the period of the sales representative agreement:
    (1) is a resident of Minnesota or maintains that person's principal place of business
in Minnesota; or
    (2) whose geographical territory specified in the sales representative agreement
includes part or all of Minnesota.
    (b) To be effective, any demand for arbitration under subdivision 5 must be made
in writing and delivered to the principal on or before one year after the effective date of
the termination of the agreement.
    (c) A provision in any contract between a sales representative dealing in plumbing
equipment or supplies and a principal purporting to waive any provision of this act,
whether by express waiver or by a provision stipulating that the contract is subject to the
laws of another state, shall be void.

    Sec. 19. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:
    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by
rule, prescribe minimum standards which shall be uniform, and which standards shall
thereafter be effective for all new plumbing installations, including additions, extensions,
alterations, and replacements connected with any water or sewage disposal system owned
or operated by or for any municipality, institution, factory, office building, hotel, apartment
building, or any other place of business regardless of location or the population of the city
or town in which the installation is to be located. Notwithstanding the provisions of
Minnesota Rules, part 4715.3130, as they apply to review of plans and specifications,
the commissioner may allow plumbing construction, alteration, or extension to proceed
without approval of the plans or specifications by the commissioner.
    Except for powers granted to the Plumbing Board, the commissioner of labor and
industry shall administer the provisions of sections 326.37 to 326.45 and for such purposes
may employ plumbing inspectors and other assistants.

    Sec. 20. Minnesota Statutes 2006, section 326.37, is amended by adding a subdivision
to read:
    Subd. 4. Air admittance valves and water-free urinals prohibited. (a)
Mechanical devices and fittings with internal moving parts are prohibited from installation
in plumbing venting systems.
    (b) All urinals covered under the jurisdiction of the state Plumbing Code must have
a water flush device with a volume of not more than one gallon per use.

    Sec. 21. [326.372] PLUMBING BOARD.
    Subdivision 1. Composition. (a) The Plumbing Board shall consist of 13 members.
Eleven members shall be appointed by the governor with the advice and consent of the
senate and shall be voting members. Appointments of members by the governor shall be
made in accordance with section 15.066. If the senate votes to refuse to consent to an
appointment of a member made by the governor, the governor shall appoint a new member
with the advice and consent of the senate. One member shall be the commissioner of labor
and industry or the designee, who shall be a voting member. One member shall be the
commissioner of health or the designee, who shall not be a voting member. Of the 11
appointed members, the composition shall be as follows:
    (1) two members shall be municipal plumbing inspectors, one from the metropolitan
area and one from greater Minnesota;
    (2) one member shall a be licensed professional engineer specializing in plumbing
designs or systems;
    (3) two members shall be commercial/industrial plumbing contractors, one from the
metropolitan area and one from greater Minnesota;
    (4) one member shall be a residential plumbing contractor;
    (5) two members shall be commercial/industrial journeymen, one from the
metropolitan area and one from greater Minnesota;
    (6) one member shall be a residential plumbing journeyman;
    (7) one member shall be a water conditioning contractor; and
    (8) one member shall be a municipal public water supply system operator or
superintendent.
    One of the municipal plumbing inspectors shall be appointed for an initial term to
end on December 31, 2010, and one municipal plumbing inspector shall be appointed for
an initial term to end on December 31, 2011. The professional engineer shall be appointed
for an initial term to end on December 31, 2011. One of the commercial/industrial
plumbing contractors shall be appointed for an initial term to end on December 31, 2010,
and one commercial/industrial plumbing contractor shall be appointed for an initial term
to end on December 31, 2011. The residential plumbing contractor shall be appointed for
an initial term to end on December 31, 2010. One of the commercial/industrial plumbing
journeymen shall be appointed for an initial term to end on December 31, 2011, and one
commercial/industrial plumbing journeyman shall be appointed for an initial term to end
on December 31, 2010. The residential plumbing journeyman shall be appointed for an
initial term to end on December 31, 2011. The water conditioning contractor shall be
appointed for an initial term to end on December 31, 2010. The municipal public water
supply system operator or superintendent shall be appointed for an initial term to end
on December 31, 2011.
    (b) The licensed professional engineer must possess a current Minnesota professional
engineering license and maintain the license for the duration of the term served on the
board. All other appointed members, except the water conditioning contractor and the
municipal public water supply system operator or superintendent, must possess a current
plumbing license issued by the Department of Labor and Industry and maintain that
license for the duration of their terms. The water conditioning contractor must be licensed
as a water conditioning contractor by the department and maintain the license for the
duration of the term served on the board. All appointed members must be residents of
Minnesota at the time of and throughout their terms. The term of any appointed member
who does not maintain membership qualification status shall end on the date of status
change and the governor shall appoint a replacement member. It is the responsibility of
the member to notify the board of a change in the member's status.
    (c) For appointed members, except the initial terms designated in paragraph (a), each
term shall be three years with the terms ending on the first Monday in January. Members
appointed by the governor shall be limited to three consecutive terms. The governor shall,
all or in part, reappoint the current members or appoint replacement members with the
advice and consent of the senate. Midterm vacancies shall be filled for the remaining
portion of the term. Vacancies occurring with less than six months time remaining in the
term shall be filled for the existing term and the following three-year term. Members may
serve until successors are appointed but in no case later than July 1 in a year in which the
term expires unless reappointed.
    Subd. 2. Powers; duties; administrative support. (a) The board shall have the
power to:
    (1) elect its chair, vice-chair, and secretary;
    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the
board, and contain such other provisions as may be useful and necessary for the efficient
conduct of the business of the board;
    (3) adopt the Plumbing Code that must be followed in this state and any Plumbing
Code amendments thereto. The board shall adopt the Plumbing Code and any amendments
thereto pursuant to chapter 14, and as provided in subdivision 6, paragraphs (b), (c),
and (d);
    (4) review requests for final interpretations and issue final interpretations as provided
in section 16B.63, subdivision 5;
    (5) except for rules regulating continuing education, adopt rules that regulate the
licensure or registration of plumbing contractors, journeymen, apprentices, master
plumbers, restricted master plumbers, and restricted journeymen and other persons
engaged in the design, installation, and alteration of plumbing systems, except for those
individuals licensed under section 326.02, subdivisions 2 and 3. The board shall adopt
these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) and (f);
    (6) advise the commissioner regarding educational requirements for plumbing
inspectors;
    (7) refer complaints or other communications, whether oral or written, that allege
or imply a violation of a statute, rule, or order that the commissioner has the authority to
enforce pertaining to code compliance, licensure, or an offering to perform or performance
of unlicensed plumbing services to the commissioner under subdivision 8;
    (8) approve per diem and expenses deemed necessary for its members as provided in
subdivision 3;
    (9) approve license reciprocity agreements;
    (10) select from its members individuals to serve on any other state advisory council,
board, or committee; and
    (11) recommend the fees for licenses and certifications.
    Except for the powers granted to the Plumbing Board, the commissioner of labor
and industry shall administer and enforce the provisions of sections 326.37 to 326.45 and
any rules promulgated pursuant thereto.
    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
    (c) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by the other boards. The
commissioner shall provide staff support to the board. The support includes professional,
legal, technical, and clerical staff necessary to perform rulemaking and other duties
assigned to the board. The commissioner of labor and industry shall supply necessary
office space and supplies to assist the board in its duties.
    Subd. 3. Compensation. (a) Members of the board may be compensated at the rate
of $55 a day spent on board activities, when authorized by the board, plus expenses in
the same manner and amount as authorized by the commissioner's plan adopted under
section 43A.18, subdivision 2. Members who, as a result of time spent attending board
meetings, incur child care expenses that would not otherwise have been incurred, may be
reimbursed for those expenses upon board authorization.
    (b) Members who are state employees or employees of the political subdivisions
of the state must not receive the daily payment for activities that occur during working
hours for which they are compensated by the state or political subdivision. However, a
state or political subdivision employee may receive the daily payment if the employee
uses vacation time or compensatory time accumulated in accordance with a collective
bargaining agreement or compensation plan for board activities. Members who are state
employees or employees of the political subdivisions of the state may receive the expenses
provided for in this subdivision unless the expenses are reimbursed by another source.
Members who are state employees or employees of political subdivisions of the state
may be reimbursed for child care expenses only for time spent on board activities that
are outside their working hours.
    (c) The board shall adopt internal standards prescribing what constitutes a day spent
on board activities for purposes of making daily payments under this subdivision.
    Subd. 4. Removal; vacancies. (a) An appointed member of the board may be
removed by the governor at any time (1) for cause, after notice and hearing, or (2) after
missing three consecutive meetings. The chair of the board shall inform the governor of
an appointed member missing three consecutive meetings. After the second consecutive
missed meeting and before the next meeting, the secretary of the board shall notify the
appointed member in writing that the member may be removed for missing the next
meeting. In the case of a vacancy on the board, the governor shall, with the advice
and consent of the senate, appoint a person to fill the vacancy for the remainder of the
unexpired term.
    (b) Vacancies shall be filled pursuant to section 15.0597, subdivisions 5 and 6.
    Subd. 5. Membership vacancies within three months of appointment.
    Notwithstanding any law to the contrary, when a seat on the board becomes vacant within
three months after being filled through the appointment process, the governor may,
upon notification to the Office of the Secretary of State, choose a new member from the
applications on hand and need not repeat the process.
    Subd. 6. Officers, quorum, voting. (a) The board shall elect annually from its
members a chair, vice-chair, and secretary. A quorum of the board shall consist of a
majority of members of the board qualified to vote on the matter in question. All questions
concerning the manner in which a meeting is conducted or called that are not covered
by statute shall be determined by Robert's Rules of Order (revised) unless otherwise
specified by the bylaws.
    (b) Except as provided in paragraph (c), each Plumbing Code amendment considered
by the board that receives an affirmative two-thirds or more majority vote of all of the
voting members of the board shall be included in the next Plumbing Code rulemaking
proceeding initiated by the board. If a Plumbing Code amendment considered, or
reconsidered, by the board receives less than a two-thirds majority vote of all of the voting
members of the board, the Plumbing Code amendment shall not be included in the next
Plumbing Code rulemaking proceeding initiated by the board.
    (c) If the Plumbing Code amendment considered by the board is to replace the
Minnesota Plumbing Code with a model Plumbing Code, then the amendment may only
be included in the next Plumbing Code rulemaking proceeding if it receives an affirmative
two-thirds or more majority vote of all of the voting members of the board.
    (d) The board may reconsider Plumbing Code amendments during an active
Plumbing Code rulemaking proceeding in which the amendment previously failed to
receive a two-thirds majority vote or more of all of the voting members of the board only if
new or updated information that affects the Plumbing Code amendment is presented to the
board. The board may also reconsider failed Plumbing Code amendments in subsequent
Plumbing Code rulemaking proceedings.
    (e) Except as provided in paragraph (f), each proposed rule and rule amendment
considered by the board pursuant to the rulemaking authority specified in subdivision 2,
paragraph (a), clauses (5) and (6), that receives an affirmative majority vote of all of the
voting members of the board shall be included in the next rulemaking proceeding initiated
by the board. If a proposed rule or rule amendment considered, or reconsidered, by the
board receives less than an affirmative majority vote of all of the voting members of the
board, the proposed rule or rule amendment shall not be included in the next rulemaking
proceeding initiated by the board.
    (f) The board may reconsider a proposed rule or rule amendment during an
active rulemaking proceeding in which the amendment previously failed to receive an
affirmative majority vote of all of the voting members of the board only if new or updated
information that affects the proposed rule or rule amendment is presented to the board.
The board may also reconsider a failed proposed rule or rule amendment in subsequent
rulemaking proceedings.
    Subd. 7. Board meetings. (a) The board shall hold meetings at such times as the
board shall specify. Notice and conduct of all meetings shall be pursuant to chapter 13D
and in such a manner as the bylaws may provide.
    (b) If compliance with section 13D.02 is impractical, the board may conduct a
meeting of its members by telephone or other electronic means so long as the following
conditions are met:
    (1) all members of the board participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
    (2) members of the public present at the regular meeting location of the board can
hear clearly all discussion and testimony and all votes of members of the board and, if
needed, receive those services required by sections 15.44 and 15.441;
    (3) at least one member of the board is physically present at the regular meeting
location; and
    (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
    Each member of the board participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and
participating in all proceedings.
    If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board, to the extent practical, shall allow a person to monitor
the meeting electronically from a remote location. The board may require the person
making such a connection to pay for documented costs that the board incurs as a result of
the additional connection.
    If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and that a
person may monitor the meeting electronically from a remote location. The timing and
method of providing notice is governed by section 13D.04.
    Subd. 8. Complaints. (a) The board shall promptly forward to the commissioner
the substance of any complaint or communication it receives, whether written or oral,
that alleges or implies a violation of a statute, rule, or order that the commissioner has
the authority to enforce pertaining to the license or registration of any person authorized
by the department to provide plumbing services, the performance or offering to perform
plumbing services requiring licensure by an unlicensed person, or Plumbing Code
compliance. Each complaint or communication that is forwarded to the commissioner
shall be submitted on a form provided by the commissioner.
    (b) The commissioner shall advise the board of the status of a complaint within 90
days after the board's written submission is received, or within 90 days after the board
is provided with a written request for additional information or documentation from the
commissioner or the commissioner's designee, whichever is later. The commissioner shall
advise the board of the disposition of a complaint referred by the board within 180 days
after the board's written submission is received. The commissioner shall annually report to
the board a summary of the actions taken in response to complaints referred by the board.
    Subd. 9. Data Practices Act. The board is subject to chapter 13, the Minnesota
Government Data Practices Act, and shall protect from unlawful disclosure data classified
as not public.
    Subd. 10. Official records. The board shall make and preserve all records necessary
to a full and accurate knowledge of its official activities in accordance with section 15.17.

    Sec. 22. Minnesota Statutes 2006, section 326.38, is amended to read:
326.38 LOCAL REGULATIONS.
    Any city having a system of waterworks or sewerage, or any town in which reside
over 5,000 people exclusive of any statutory cities located therein, or the metropolitan
airports commission, Any of the following entities may, by ordinance, adopt local
regulations providing for plumbing permits, bonds, approval of plans and specifications,
and inspections of plumbing, which regulations are not in conflict with the plumbing
standards on the same subject prescribed by the state commissioner of health. code: any
city having a system of waterworks or sewerage, regardless of population; any town
having a population of 5,000 or more according to the last federal census, exclusive of any
statutory cities located therein; and the Metropolitan Airports Commission. No city or
such town such entity shall prohibit plumbers licensed by the state commissioner of health
from engaging in or working at the business of plumbing, except cities and statutory cities
which, prior to April 21, 1933, by ordinance required the licensing of plumbers. No such
entity shall require any person who engages in the business of plumbing to post a bond
as a prerequisite for engaging in the business of plumbing, except the bond to the state
required under section 326.40 and except any performance bond required under a contract
with the person for the performance of plumbing work for the entity. No such entity shall
require any person who engages in the business of plumbing to maintain public liability
insurance as a prerequisite for engaging in the business of plumbing, except the insurance
required under section 326.40 and except any public liability insurance required under
a contract with the person for the performance of plumbing work for the entity. No city
or town may require a license for persons performing building sewer or water service
installation who have completed pipe laying training as prescribed by the commissioner
of labor and industry. Any city by ordinance may prescribe regulations, reasonable
standards, and inspections and grant permits to any person, firm, or corporation engaged
in the business of installing water softeners, who is not licensed as a master plumber or
journeyman plumber by the state commissioner of health, to connect water softening and
water filtering equipment to private residence water distribution systems, where provision
has been previously made therefor and openings left for that purpose or by use of cold
water connections to a domestic water heater; where it is not necessary to rearrange, make
any extension or alteration of, or addition to any pipe, fixture or plumbing connected with
the water system except to connect the water softener, and provided the connections so
made comply with minimum standards prescribed by the state commissioner of health
Plumbing Board.

    Sec. 23. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:
    Subdivision 1. License required; master and journeyman plumbers. In any city
now or hereafter having 5,000 or more population, according to the last federal census,
and having a system of waterworks or sewerage, (a) No person, firm, or corporation shall
engage in or work at the business of a master plumber or, restricted master plumber,
journeyman plumber, and restricted journeyman plumber unless licensed to do so by
the state commissioner of health. A license is not required for individuals performing
building sewer or water service installation who have completed pipe laying training
as prescribed by the commissioner of labor and industry. A master plumber may also
work as a journeyman plumber, a restricted journeyman plumber, and a restricted master
plumber. A journeyman plumber may also work as a restricted journeyman plumber.
Anyone not so licensed may do plumbing work which complies with the provisions of the
minimum standard standards prescribed by the state commissioner of health Plumbing
Board on premises or that part of premises owned and actually occupied by the worker as
a residence, unless otherwise forbidden to do so by a local ordinance.
    In any such city (b) No person, firm, or corporation shall engage in the business of
planning, superintending, or installing plumbing nor or shall install plumbing in connection
with the dealing in and selling of plumbing material and supplies unless at all times a
licensed master plumber, or in cities and towns with a population of fewer than 5,000
according to the federal census, a restricted master plumber, who shall be responsible for
proper installation, is in charge of the plumbing work of the person, firm, or corporation.
    The Department of Health shall prescribe rules, not inconsistent herewith, for the
examination and licensing of plumbers.

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

    Sec. 25. [326.402] RESTRICTED PLUMBER LICENSE.
    Subdivision 1. Licensure. The commissioner of labor and industry shall grant a
restricted journeyman or restricted master plumber license to an individual if:
    (1) the individual completes an application with information required by the
commissioner of labor and industry;
    (2) the completed application is accompanied by a fee of $30;
    (3) the commissioner of labor and industry receives the completed application and
fee before January 1, 2008;
    (4) the completed application demonstrates that the applicant has had at least two
years for a restricted journeyman plumber license or four years for a restricted master
plumber license of practical plumbing experience in the plumbing trade prior to the
application; and
    (5) during the entire time for which the applicant is claiming experience in
contracting for plumbing work under clause (4), the applicant was in compliance with all
applicable requirements of section 326.40.
    Subd. 2. Use of license. A restricted master plumber and restricted journeyman
plumber may engage in the plumbing trade in all areas of the state except in cities and
towns with a population of more than 5,000 according to the federal census.
    Subd. 3. Application period. Applications for restricted master plumber and
restricted journeyman plumber licenses must be submitted to the commissioner prior
to January 1, 2008.
    Subd. 4. Renewal; use period for license. A restricted master plumber and
restricted journeyman plumber license must be renewed annually for as long as that
licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
restricted journeyman plumber license within 12 months after the expiration date will
result in permanent forfeiture of the restricted master plumber and restricted journeyman
plumber license.
    Subd. 5. Prohibition of transference. A restricted master plumber and restricted
journeyman plumber license may not be transferred or sold to any other person.
    Subd. 6. Bond; insurance. A restricted master plumber licensee is subject to the
bond and insurance requirements of section 326.40, subdivision 2, unless the exemption
provided by section 326.40, subdivision 3, applies.
    Subd. 7. Fee. The annual fee for the restricted master plumber and restricted
journeyman plumber licenses is the same fee as for a master or journeyman plumber
license, respectively.

    Sec. 26. Minnesota Statutes 2006, section 326.405, is amended to read:
326.405 RECIPROCITY WITH OTHER STATES.
    The commissioner of health may license without examination, upon payment of the
required fee, nonresident applicants who are licensed under the laws of a state having
standards for licensing plumbers which the commissioner determines are substantially
equivalent to the standards of this state if the other state grants similar privileges to
Minnesota residents duly licensed in this state. The commissioner may enter into
reciprocity agreements for personal licenses with another state if approved by the board.
Once approved by the board, the commissioner may issue a plumber's license without
requiring the applicant to pass an examination provided the applicant:
    (a) submits an application under section 326.42;
    (b) pays the fee required under section 326.42; and
    (c) holds a valid comparable license in the state participating in the agreement.
    Agreements are subject to the following:
    (1) The parties to the agreement must administer a statewide licensing program that
includes examination and qualifying experience or training comparable to Minnesota's.
    (2) The experience and training requirements under which an individual applicant
qualified for examination in the qualifying state must be deemed equal to or greater than
required for an applicant making application in Minnesota at the time the applicant
acquired the license in the qualifying state.
    (3) The applicant must have acquired the license in the qualifying state through an
examination deemed equivalent to the same class of license examination in Minnesota.
A lesser class of license may be granted where the applicant has acquired a greater
class of license in the qualifying state and the applicant otherwise meets the conditions
of this subdivision.
    (4) At the time of application, the applicant must hold a valid license in the
qualifying state and have held the license continuously for at least one year before making
application in Minnesota.
    (5) An applicant is not eligible for a license under this subdivision if the applicant
has failed the same or greater class of license examination in Minnesota, or if the
applicant's license of the same or greater class has been revoked or suspended.
    (6) An applicant who has failed to renew a plumber's license for two years or more
after its expiration is not eligible for a license under this subdivision.

    Sec. 27. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:
    Subdivision 1. Application. Applications for plumber's license shall be made to
the state commissioner of health, with fee. Unless the applicant is entitled to a renewal,
the applicant shall be licensed by the state commissioner of health only after passing a
satisfactory examination developed and administered by the examiners commissioner,
based upon rules adopted by the Plumbing Board, showing fitness. Examination fees
for both journeyman and master plumbers shall be in an amount prescribed by the state
commissioner of health pursuant to section 144.122 $50 for each examination. Upon
being notified that of having successfully passed the examination for original license
the applicant shall submit an application, with the license fee herein provided. License
fees shall be in an amount prescribed by the state commissioner of health pursuant to
section 144.122. Licenses shall expire and be renewed as prescribed by the commissioner
pursuant to section 144.122. The license fee for each initial and renewal master plumber's
license shall be $120. The license fee for each initial and renewal journeyman plumber's
license shall be $55. The commissioner may by rule prescribe for the expiration and
renewal of licenses. Any licensee who does not renew a license within two years after the
license expires is no longer eligible for renewal. Such an individual must retake and pass
the examination before a new license will be issued. A journeyman or master plumber
who submits a license renewal application after the time specified in rule but within two
years after the license expired must pay all past due renewal fees plus a late fee of $25.

    Sec. 28. [326B.04] DEPOSIT OF MONEY.
    Subdivision 1. Construction code fund. There is created in the state treasury
a construction code fund as a special revenue fund for the purpose of administering this
chapter, sections 327.31 to 327.36, and chapter 327B. All money collected under those
sections, except penalties, is credited to the construction code fund unless otherwise
specifically designated by law. Any interest or profit accruing from investment of these
sums is credited to the construction code fund. All money collected in the construction
code fund is appropriated to the commissioner of labor and industry to administer and
enforce the provisions of the laws identified in this section.
    Unless otherwise provided by law, all penalties assessed under this chapter, section
327.35, and chapter 327B are credited to the assigned risk safety account established
by section 79.253.
    Subd. 2. Deposits. All remaining balances as of June 30, 2007, in the state
government special revenue fund and special revenue fund accounts maintained for
the Building Codes and Standards Division, Board of Electricity, and plumbing and
engineering unit are transferred to the construction code fund. Unless otherwise
specifically designated by law: (1) all money collected under chapter 183 and sections
16B.59 to 16B.76; 144.122, paragraph (f); 181.723; 326.241 to 326.248; 326.37 to
326.521; 326.57 to 326.65; 326.83 to 326.992; 327.31 to 327.36; and 327B.01 to
327B.12, except penalties, is credited to the construction code fund; (2) all fees collected
under section 45.23 in connection with continuing education for residential contractors,
residential remodelers, and residential roofers are credited to the construction code fund;
and (3) all penalties assessed under the sections set forth in clauses (1) and (2) and all
penalties assessed under sections 144.99 to 144.993 in connection with any violation of
sections 326.37 to 326.45 or 326.57 to 327.65 or the rules adopted under those sections
are credited to the assigned risk safety account established by section 79.253.

    Sec. 29. [326B.89] CONTRACTOR RECOVERY FUND.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them.
    (b) "Gross annual receipts" means the total amount derived from residential
contracting or residential remodeling activities, regardless of where the activities are
performed, and must not be reduced by costs of goods sold, expenses, losses, or any
other amount.
    (c) "Licensee" means a person licensed as a residential contractor or residential
remodeler.
    (d) "Residential real estate" means a new or existing building constructed for
habitation by one to four families, and includes detached garages.
    (e) "Fund" means the contractor recovery fund.
    Subd. 2. Generally. The contractor recovery fund is created in the state treasury
and shall be administered by the commissioner for the purposes described in this section.
Any interest or profit accruing from investment of money in the fund shall be credited
to the contractor recovery fund.
    Subd. 3. Fund fees. In addition to any other fees, a person who applies for or
renews a license under sections 326.83 to 326.98 shall pay a fee to the fund. The person
shall pay, in addition to the appropriate application or renewal fee, the following additional
fee that shall be deposited in the fund. The amount of the fee shall be based on the person's
gross annual receipts for the person's most recent fiscal year preceding the application or
renewal, on the following scale:

Fee
Gross Annual Receipts

$160
under $1,000,000

$210
$1,000,000 to $5,000,000

$260
over $5,000,000
    Subd. 4. Purpose of fund. The purpose of this fund is to:
    (1) compensate owners or lessees of residential real estate who meet the requirements
of this section;
    (2) reimburse the department for all legal and administrative expenses,
disbursements, and costs, including staffing costs, incurred in administering and defending
the fund;
    (3) pay for educational or research projects in the field of residential contracting to
further the purposes of sections 326B.801 to 326B.825; and
    (4) provide information to the public on residential contracting issues.
    Subd. 5. Payment limitations. Except as otherwise provided in this section,
the commissioner shall not pay compensation from the fund to an owner or a lessee
in an amount greater than $75,000. Except as otherwise provided in this section, the
commissioner shall not pay compensation from the fund to owners and lessees in an
amount that totals more than $150,000 per licensee. The commissioner shall not pay
compensation from the fund for a final judgment based on a cause of action that arose
before the commissioner's receipt of the licensee's fee required by subdivision 3.
    Subd. 6. Verified application. To be eligible for compensation from the fund, an
owner or lessee shall serve on the commissioner a verified application for compensation
on a form approved by the commissioner. The application shall verify the following
information:
    (1) the specific grounds upon which the owner or lessee seeks to recover from
the fund:
    (2) that the owner or the lessee has obtained a final judgment in a court of competent
jurisdiction against a licensee licensed under section 326B.803;
    (3) that the final judgment was obtained against the licensee on the grounds of
fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of performance
that arose directly out of a transaction that occurred when the licensee was licensed and
performing any of the special skills enumerated under section 326B.802, subdivision 19;
    (4) the amount of the owner's or the lessee's actual and direct out-of-pocket loss on
the owner's residential real estate, on residential real estate leased by the lessee, or on new
residential real estate that has never been occupied or that was occupied by the licensee
for less than one year prior to purchase by the owner;
    (5) that the residential real estate is located in Minnesota;
    (6) that the owner or the lessee is not the spouse of the licensee or the personal
representative of the licensee;
    (7) the amount of the final judgment, any amount paid in satisfaction of the final
judgment, and the amount owing on the final judgment as of the date of the verified
application; and
    (8) that the verified application is being served within two years after the judgment
became final.
    The owner's and the lessee's actual and direct out-of-pocket loss shall not include
attorney fees, interest on the loss, and interest on the final judgment obtained as a result of
the loss. An owner or lessee may serve a verified application regardless of whether the
final judgment has been discharged by a bankruptcy court. A judgment issued by a court is
final if all proceedings on the judgment have either been pursued and concluded or been
forgone, including all reviews and appeals. For purposes of this section, owners who are
joint tenants or tenants in common are deemed to be a single owner. For purposes of this
section, owners and lessees eligible for payment of compensation from the fund shall not
include government agencies, political subdivisions, financial institutions, and any other
entity that purchases, guarantees, or insures a loan secured by real estate.
    Subd. 7. Commissioner review. The commissioner shall within 120 days after
receipt of the verified application:
    (1) enter into an agreement with an owner or a lessee that resolves the verified
application for compensation from the fund; or
    (2) issue an order to the owner or the lessee accepting, modifying, or denying the
verified application for compensation from the fund.
    Upon receipt of an order issued under clause (2), the owner or the lessee shall have
30 days to serve upon the commissioner a written request for a hearing. If the owner or
the lessee does not serve upon the commissioner a timely written request for hearing, the
order issued under clause (2) shall become a final order of the commissioner that may not
be reviewed by any court or agency. The commissioner shall order compensation from
the fund only if the owner or the lessee has filed a verified application that complies with
subdivision 6 and if the commissioner determines based on review of the application that
compensation should be paid from the fund. The commissioner shall not be bound by any
prior settlement, compromise, or stipulation between the owner or the lessee and the
licensee.
    Subd. 8. Administrative hearing. If an owner or a lessee timely serves a request
for hearing under subdivision 7, the commissioner shall request that an administrative law
judge be assigned and that a hearing be conducted under the contested case provisions
of chapter 14 within 30 days after the service of the request for hearing upon the
commissioner. Upon petition of the commissioner, the administrative law judge shall
continue the hearing up to 60 days and upon a showing of good cause may continue the
hearing for such additional period as the administrative law judge deems appropriate.
At the hearing the owner or the lessee shall have the burden of proving by substantial
evidence under subdivision 6, clauses (1) to (8). The administrative law judge shall issue
findings of fact, conclusions of law, and order. If the administrative law judge finds that
compensation should be paid to the owner or the lessee, the administrative law judge
shall order the commissioner to make payment from the fund of the amount it finds to be
payable pursuant to the provisions of and in accordance with the limitations contained in
this section. The order of the administrative law judge shall constitute the final decision of
the agency in the contested case. Judicial review of the administrative law judge's findings
of fact, conclusions of law, and order shall be in accordance with sections 14.63 to 14.69.
    Subd. 9. Satisfaction of applications for compensation. The commissioner shall
pay compensation from the fund to an owner or a lessee pursuant to the terms of an
agreement that has been entered into under subdivision 7, clause (1), or pursuant to a final
order that has been issued under subdivision 7, clause (2), or subdivision 8 by December 1
of the fiscal year following the fiscal year during which the agreement was entered into or
during which the order became final, subject to the limitations of this section. At the end
of each fiscal year the commissioner shall calculate the amount of compensation to be
paid from the fund pursuant to agreements that have been entered into under subdivision
7, clause (1), and final orders that have been issued under subdivision 7, clause (2), or
subdivision 8. If the calculated amount exceeds the amount available for payment, then
the commissioner shall allocate the amount available among the owners and the lessees
in the ratio that the amount agreed to or ordered to be paid to each owner or lessee
bears to the amount calculated. The commissioner shall mail notice of the allocation to
all owners and lessees not less than 45 days following the end of the fiscal year. Any
compensation paid by the commissioner in accordance with this subdivision shall be
deemed to satisfy and extinguish any right to compensation from the fund based upon the
verified application of the owner or lessee.
    Subd. 10. Right of subrogation. If the commissioner pays compensation from the
fund to an owner or a lessee pursuant to an agreement under subdivision 7, clause (1), or a
final order issued under subdivision 7, clause (2), or subdivision 8, then the commissioner
shall be subrogated to all of the rights, title, and interest in the owner's or lessee's final
judgment in the amount of compensation paid from the fund and the owner or the lessee
shall assign to the commissioner all rights, title, and interest in the final judgment in
the amount of compensation paid. The commissioner shall deposit in the fund money
recovered under this subdivision.
    Subd. 11. Effect of section on commissioner's authority. Nothing contained
in this section shall limit the authority of the commissioner to take disciplinary action
against a licensee under the provisions of this chapter. A licensee's repayment in full of
obligations to the fund shall not nullify or modify the effect of any other disciplinary
proceeding brought under the provisions of this chapter.
    Subd. 12. Limitation. Nothing may obligate the fund to compensate:
    (1) insurers or sureties under subrogation or similar theories; or
    (2) owner of residential property for final judgments against a prior owner of the
residential property unless the claim is brought and judgment is rendered for breach of the
statutory warranty set forth in chapter 327A.
    Subd. 13. Condominiums or townhouses. For purposes of this section, the owner
or the lessee of a condominium or townhouse is considered an owner or a lessee of
residential property regardless of the number of residential units per building.
    Subd. 14. Accelerated compensation. (a) Payments made from the fund to
compensate owners and lessees that do not exceed the jurisdiction limits for conciliation
court matters as specified in section 491A.01 may be paid on an accelerated basis if all of
the requirements in paragraphs (b) and (c) have been satisfied.
    (b) The owner or the lessee has served upon the commissioner a verified application
for compensation that complies with the requirements set out in subdivision 6 and the
commissioner determines based on review of the application that compensation should be
paid from the fund. The commissioner shall calculate the actual and direct out-of-pocket
loss in the transaction, minus attorney fees, interest on the loss and on the judgment
obtained as a result of the loss, and any satisfaction of the judgment, and make payment
to the owner or the lessee up to the conciliation court jurisdiction limits within 15 days
after the owner or lessee serves the verified application.
    (c) The commissioner may pay compensation to owners or lessees that totals not
more than $50,000 per licensee per fiscal year under this accelerated process. The
commissioner may prorate the amount of compensation paid to owners or lessees under
this subdivision if applications submitted by owners and lessees seek compensation in
excess of $50,000 against a licensee. Any unpaid portion of a verified application that
has been prorated under this subdivision shall be satisfied in the manner set forth in
subdivision 9.
    Subd. 15. Appropriation. Money in the fund is appropriated to the commissioner
for the purposes of this section.
    Subd. 16. Additional assessment. If the balance in the fund is at any time less than
the commissioner determines is necessary to carry out the purposes of this section, every
licensee, when renewing a license, shall pay, in addition to the annual renewal fee and
the fee set forth in subdivision 3 an assessment not to exceed $100. The commissioner
shall set the amount of assessment based on a reasonable determination of the amount
that is necessary to restore a balance in the fund that is adequate to carry out the purposes
of this section.
EFFECTIVE DATE.This section is effective December 1, 2007, except that
subdivisions 1, 3, and 15 are effective July 1, 2007.

    Sec. 30. Minnesota Statutes 2006, section 341.21, is amended by adding a subdivision
to read:
    Subd. 8. Mixed martial arts. "Mixed martial arts" means any combination of
boxing, kick boxing, wrestling, grappling, or other recognized martial arts.

    Sec. 31. Minnesota Statutes 2006, section 341.22, is amended to read:
341.22 BOXING COMMISSION.
    There is hereby created the Minnesota Boxing Commission consisting of five nine
members who are citizens of this state. The members must be appointed by the governor.
One member of the commission must be a retired judge of the Minnesota district court,
Minnesota Court of Appeals, Minnesota Supreme Court, the United States District Court
for the District of Minnesota, or the Eighth Circuit Court of Appeals, and at least three
members must have knowledge of the boxing industry. At least four members must have
knowledge of the mixed martial arts industry. The governor shall make serious efforts to
appoint qualified women to serve on the commission. Membership terms, compensation
of members, removal of members, the filling of membership vacancies, and fiscal year and
reporting requirements must be as provided in sections 214.07 to 214.09. The provision of
staff, administrative services, and office space; the review and processing of complaints;
the setting of fees; and other provisions relating to commission operations must be as
provided in chapter 214. The purpose of the commission is to protect health, promote
safety, and ensure fair events.

    Sec. 32. Minnesota Statutes 2006, section 341.25, is amended to read:
341.25 RULES.
    (a) The commission may adopt rules that include standards for the physical
examination and condition of boxers and referees.
    (b) The commission may adopt other rules necessary to carry out the purposes of
this chapter, including, but not limited to, the conduct of boxing exhibitions, bouts, and
fights, and their manner, supervision, time, and place.
    (c) The commission must adopt unified rules for mixed martial arts.

    Sec. 33. Minnesota Statutes 2006, section 341.27, is amended to read:
341.27 COMMISSION DUTIES.
    The commission shall:
    (1) issue, deny, renew, suspend, or revoke licenses;
    (2) make and maintain records of its acts and proceedings including the issuance,
denial, renewal, suspension, or revocation of licenses;
    (3) keep public records of the commission open to inspection at all reasonable times;
    (4) assist the director in the development of rules to be implemented under this
chapter; and
    (5) conform to the rules adopted under this chapter; and
    (6) develop policies and procedures for regulating mixed martial arts.

    Sec. 34. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:
    Subd. 2. Regulatory authority; tough person contests. All tough person contests,
including amateur tough person contests, are subject to this chapter. All tough person
contests are subject to American Boxing Commission (ABC) rules. Every contestant
in a tough person contest shall have a physical examination prior to their bouts. Every
contestant in a tough person contest shall wear padded gloves that weigh at least 12
ounces. All tough person bouts are limited to two-minute rounds and a maximum of four
total rounds. Officials at tough person bouts shall be licensed under this chapter.

    Sec. 35. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision
to read:
    Subd. 3. Regulatory authority; similar sporting events. All mixed martial arts,
ultimate fight contests, and similar sporting events are subject to this chapter.

    Sec. 36. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:
    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in
the year of its issuance issued after the effective date of this act is valid for one year from
the date it is issued and may be renewed by filing an application for renewal with the
commission and payment of the license fee. An application for a license and renewal of a
license must be on a form provided by the commission. There is a 30-day grace period
during which a license may be renewed if a late filing penalty fee equal to the license fee
is submitted with the regular license fee. A licensee that files late shall not conduct any
activity regulated by this chapter until the commission has renewed the license. If the
licensee fails to apply to the commission within the 30-day grace period, the licensee must
apply for a new license under subdivision 1.

    Sec. 37. Minnesota Statutes 2006, section 341.321, is amended to read:
341.321 FEE SCHEDULE.
    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission
is as follows:
    (1) referees, $35 $45 for each initial license and each renewal;
    (2) promoters, $400 for each initial license and each renewal;
    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
    (4) trainers, $35 $45 for each initial license and each renewal;
    (5) ring announcers, $25 $45 for each initial license and each renewal;
    (6) boxers' seconds, $25 $45 for each initial license and each renewal;
    (7) timekeepers, $25 $45 for each initial license and each renewal; and
    (8) boxers, $35 $45 for each initial license and each renewal.;
    (9) managers, $45 for each initial license and each renewal; and
    (10) ringside physicians, $45 for each initial license and each renewal.
    (b) The commission shall establish and assess an event fee for each sporting event.
The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as
determined by the commission when the sporting event is scheduled.
    (c) All fees collected by the Minnesota Boxing Commission must be deposited in
the Boxing Commission account in the special revenue fund.

    Sec. 38. Minnesota Statutes 2006, section 471.471, subdivision 4, is amended to read:
    Subd. 4. Application process. A person seeking a waiver shall apply to the
Building Code and Standards Division of the Department of Administration Labor and
Industry on a form prescribed by the board and pay a $70 fee to the construction code
fund. The division shall review the application to determine whether it appears to be
meritorious, using the standards set out in subdivision 3. The division shall forward
applications it considers meritorious to the board, along with a list and summary of
applications considered not to be meritorious. The board may require the division to
forward to it an application the division has considered not to be meritorious. The board
shall issue a decision on an application within 90 days of its receipt. A board decision
to approve an application must be unanimous. An application that contains false or
misleading information must be rejected.

    Sec. 39. WHISTLE-BLOWER PROTECTION ADMINISTRATIVE
PROCEDURES.
    By January 15, 2008, the commissioner of labor and industry shall report to the
legislature its recommendations for implementing an administrative review procedure to
address whistle-blower protection complaints under section 181.932.

    Sec. 40. TRANSFER OF AUTHORITY; PLUMBING BOARD.
    The commissioner of administration may not use the authority under Minnesota
Statutes, section 16B.37, to modify the transfers of authority in this act.

    Sec. 41. FIRST MEETING; APPOINTMENTS FOR PLUMBING BOARD.
    The governor must complete the appointments required by Minnesota Statutes,
section 326.372, no later than July 1, 2007. The commissioner of labor and industry shall
convene the first meeting of the Plumbing Board no later than September 1, 2007.

    Sec. 42. REPEALER.
Minnesota Statutes 2006, sections 176.042; 268.035, subdivision 9; and 326.45, are
repealed.
EFFECTIVE DATE.Sections 176.042 and 268.035, subdivision 9, are repealed
effective January 1, 2009.

ARTICLE 4
HIGH PRESSURE PIPING

    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:
326.46 SUPERVISION OF DEPARTMENT TO SUPERVISE HIGH
PRESSURE PIPING.
    The department of Labor and Industry shall supervise all high pressure piping used
on all projects in this state, and may prescribe minimum standards which shall be uniform.
    The department shall employ inspectors and other assistants to carry out the
provisions of sections 326.46 to 326.52.

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

    Sec. 3. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.
    Subdivision 1. Composition. (a) The Board of High Pressure Piping Systems shall
consist of 12 members. Eleven members shall be appointed by the governor with the
advice and consent of the senate and shall be voting members. Appointments of members
by the governor shall be made in accordance with section 15.066. If the senate votes to
refuse to consent to an appointment of a member made by the governor, the governor shall
appoint a new member with the advice and consent of the senate. One member shall be
the commissioner of labor and industry or the commissioner's designee, who shall be a
voting member. Of the 11 appointed members, the composition shall be as follows:
    (1) one member shall be a high pressure piping inspector;
    (2) one member shall be a licensed professional mechanical engineer;
    (3) one member shall be a representative of the high pressure piping industry;
    (4) four members shall be high pressure piping contractors engaged in the scope of
high pressure piping, two from the metropolitan area and two from greater Minnesota;
    (5) two members shall be high pressure piping journeymen engaged in the scope
of high pressure piping systems installation, one from the metropolitan area and one
from greater Minnesota; and
    (6) two members shall be representatives of industrial companies which use high
pressure piping systems in their industrial processes.
    (b) The high pressure piping inspector shall be appointed for a term to end December
31, 2011. The professional mechanical engineer shall be appointed for a term to end
December 31, 2010. The representative of the high pressure piping industry shall be
appointed for a term to end December 31, 2011. Two of the high pressure piping
contractors shall be appointed for a term to end December 31, 2011, and two high pressure
piping contractors shall be appointed for a term to end December 31, 2010. One of the
high pressure piping journeymen shall be appointed for a term to end December 31, 2011,
and one high pressure piping journeyman shall be appointed for a term to end December
31, 2010. The two representatives of industrial companies that use high pressure piping
systems in their industrial process shall be appointed for a term to end December 31, 2010.
    (c) The licensed professional mechanical engineer must possess a current Minnesota
professional engineering license and maintain the license for the duration of the term
served on the board. All other appointed members, except for the representative of the
piping industry and the representatives of industrial companies that use high pressure
piping systems in their industrial processes must possess a current high pressure piping
license issued by the Department of Labor and Industry and maintain that license for the
duration of their terms. All appointed members must be residents of Minnesota at the time
of and throughout their terms. The term of any appointed member who does not maintain
membership qualification status shall end on the date of status change and the governor
shall appoint a replacement member. It is the responsibility of the member to notify the
board of a change in the member's status.
    (d) For appointed members, except for the initial terms designated in paragraph (a),
each term shall be three years with the terms ending on the first Monday in January.
Members appointed by the governor shall be limited to three consecutive terms. The
governor shall, all or in part, reappoint the current members or appoint replacement
members with the advice and consent of the senate. Midterm vacancies shall be filled for
the remaining portion of the term. Vacancies occurring with less than six months time
remaining in the term shall be filled for the existing term and the following three-year
term. Members may serve until their successors are appointed but in no case later than
July 1 in a year in which the term expires unless reappointed.
    Subd. 2. Powers; duties; administrative support. (a) The board shall have the
power to:
    (1) elect its chair, vice-chair, and secretary;
    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the
board, and contain such other provisions as may be useful and necessary for the efficient
conduct of the business of the board;
    (3) adopt the High Pressure Piping Code that must be followed in this state and any
High Pressure Piping Code amendments thereto pursuant to chapter 14 and as provided in
subdivision 6, paragraphs (b), (c), and (d);
    (4) review requests for final interpretations and issue final interpretations as provided
in section 16B.63, subdivision 5;
    (5) adopt rules that regulate the licensure or registration of high pressure piping
contractors, journeymen, and other persons engaged in the design, installation, and
alteration of high pressure piping systems, except for those individuals licensed under
section 326.02, subdivisions 2 and 3. The board shall adopt these rules pursuant to chapter
14 and as provided in subdivision 6, paragraph (e);
    (6) adopt rules that regulate continuing education for individuals licensed or
registered as high pressure piping contractors, journeymen, or other persons engaged in
the design, installation, and alteration of high pressure piping systems. The board shall
adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraph (e);
    (7) advise the commissioner regarding educational requirements for high pressure
piping inspectors;
    (8) refer complaints or other communications, whether orally or in writing, that
allege or imply a violation of a statute, rule, or order that the commissioner has the
authority to enforce pertaining to code compliance, licensure, or an offering to perform
or performance of unlicensed high pressure piping services to the commissioner under
subdivision 8;
    (9) approve per diem and expenses deemed necessary for its members as provided in
subdivision 3;
    (10) select from its members individuals to serve on any other state advisory council,
board, or committee; and
    (11) recommend the fees for licenses and certifications.
    Except for the powers granted to the Board of High Pressure Piping Systems, the
commissioner of labor and industry shall administer and enforce the provisions of sections
326.46 to 326.521 and any rules promulgated pursuant thereto.
    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
    (c) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by the other boards. The
commissioner shall provide staff support to the board. The support includes professional,
legal, technical, and clerical staff necessary to perform rulemaking and other duties
assigned to the board. The commissioner of labor and industry shall supply necessary
office space and supplies to assist the board in its duties.
    Subd. 3. Compensation. (a) Members of the board may be compensated at the rate
of $55 per day spent on board activities, when authorized by the board, plus expenses in
the same manner and amount as authorized by the commissioner's plan adopted under
section 43A.18, subdivision 2. Members who, as a result of time spent attending board
meetings, incur child care expenses that would not otherwise have been incurred, may be
reimbursed for those expenses upon board authorization.
    (b) Members who are state employees or employees of political subdivisions of
the state must not receive the daily payment for activities that occur during working
hours for which they are compensated by the state or political subdivision. However, a
state or political subdivision employee may receive the daily payment if the employee
uses vacation time or compensatory time accumulated in accordance with a collective
bargaining agreement or compensation plan for board activities. Members who are state
employees or employees of the political subdivisions of the state may receive the expenses
provided for in this subdivision unless the expenses are reimbursed by another source.
Members who are state employees or employees of political subdivisions of the state
may be reimbursed for child care expenses only for time spent on board activities that
are outside their working hours.
    (c) The board shall adopt internal standards prescribing what constitutes a day spent
on board activities for purposes of making daily payments under this subdivision.
    Subd. 4. Removal; vacancies. (a) An appointed member of the board may be
removed by the governor at any time (1) for cause, after notice and hearing, or (2) after
missing three consecutive meetings. The chair of the board shall inform the governor of
an appointed member missing three consecutive meetings. After the second consecutive
missed meeting and before the next meeting, the secretary of the board shall notify the
appointed member in writing that the member may be removed for missing the next
meeting. In the case of a vacancy on the board, the governor shall, with the advice
and consent of the senate, appoint a person to fill the vacancy for the remainder of the
unexpired term.
    (b) Vacancies shall be filled pursuant to section 15.0597, subdivisions 5 and 6.
    Subd. 5. Membership vacancies within three months of appointment.
    Notwithstanding any law to the contrary, when a seat on the board becomes vacant within
three months after being filled through the appointment process, the governor may,
upon notification to the Office of the Secretary of State, choose a new member from the
applications on hand and need not repeat the process.
    Subd. 6. Officers, quorum, voting. (a) The board shall elect annually from its
members a chair, vice-chair, and secretary. A quorum of the board shall consist of a
majority of members of the board qualified to vote on the matter in question. All questions
concerning the manner in which a meeting is conducted or called that are not covered
by statute shall be determined by Robert's Rules of Order (revised) unless otherwise
specified by the bylaws.
    (b) Except as provided in paragraph (c), each High Pressure Piping Code amendment
considered by the board that receives an affirmative two-thirds or more majority vote
of all of the voting members of the board shall be included in the next High Pressure
Piping Code rulemaking proceeding initiated by the board. If a High Pressure Piping Code
amendment considered, or reconsidered, by the board receives less than a two-thirds
majority vote of all of the voting members of the board, the High Pressure Piping Code
amendment shall not be included in the next High Pressure Piping Code rulemaking
proceeding initiated by the board.
    (c) If the High Pressure Piping Code amendment considered by the board is to
replace the Minnesota High Pressure Piping Code with a model High Pressure Piping
Code, then the amendment may only be included in the next High Pressure Piping Code
rulemaking proceeding if it receives an affirmative two-thirds or more majority vote
of all of the voting members of the board.
    (d) The board may reconsider High Pressure Piping Code amendments during
an active High Pressure Piping Code rulemaking proceeding in which the amendment
previously failed to receive a two-thirds or more majority vote of all of the voting
members of the board only if new or updated information that affects the High Pressure
Piping Code amendment is presented to the board. The board may also reconsider failed
High Pressure Piping Code amendments in subsequent High Pressure Piping Code
rulemaking proceedings.
    (e) Except as provided in paragraph (f), each proposed rule and rule amendment
considered by the board pursuant to the rulemaking authority specified in subdivision 2,
paragraph (a), clauses (5) and (6), that receives an affirmative majority vote of all of the
voting members of the board shall be included in the next rulemaking proceeding initiated
by the board. If a proposed rule or rule amendment considered, or reconsidered, by the
board receives less than an affirmative majority vote of all of the voting members of the
board, the proposed rule or rule amendment shall not be included in the next rulemaking
proceeding initiated by the board.
    (f) The board may reconsider a proposed rule or rule amendment during an
active rulemaking proceeding in which the amendment previously failed to receive an
affirmative majority vote of all of the voting members of the board only if new or updated
information that affects the proposed rule or rule amendment is presented to the board.
The board may also reconsider a failed proposed rule or rule amendment in subsequent
rulemaking proceedings.
    Subd. 7. Board meetings. (a) The board shall hold meetings at such times as the
board shall specify. Notice and conduct of all meetings shall be pursuant to chapter 13D
and in such a manner as the bylaws may provide.
    (b) If compliance with section 13D.02 is impractical, the board may conduct a
meeting of its members by telephone or other electronic means so long as the following
conditions are met:
    (1) all members of the board participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
    (2) members of the public present at the regular meeting location of the board can
hear clearly all discussion and testimony and all votes of members of the board and, if
needed, receive those services required by sections 15.44 and 15.441;
    (3) at least one member of the board is physically present at the regular meeting
location; and
    (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
    Each member of the board participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and
participating in all proceedings.
    If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board, to the extent practical, shall allow a person to monitor
the meeting electronically from a remote location. The board may require the person
making such a connection to pay for documented costs that the board incurs as a result of
the additional connection.
    If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and that a
person may monitor the meeting electronically from a remote location. The timing and
method of providing notice is governed by section 13D.04.
    Subd. 8. Complaints. (a) The board shall promptly forward to the commissioner
the substance of any complaint or communication it receives, whether in writing or orally,
that alleges or implies a violation of a statute, rule, or order that the commissioner has
the authority to enforce pertaining to the license or registration of any person authorized
by the department to provide high pressure piping services, the performance or offering
to perform high pressure piping services requiring licensure by an unlicensed person, or
high pressure code compliance. Each complaint or communication that is forwarded to the
commissioner shall be submitted on a form provided by the commissioner.
    (b) The commissioner shall advise the board of the status of a complaint within 90
days after the board's written submission is received, or within 90 days after the board
is provided with a written request for additional information or documentation from the
commissioner or the commissioner's designee, whichever is later. The commissioner shall
advise the board of the disposition of a complaint referred by the board within 180 days
after the board's written submission is received. The commissioner shall annually report to
the board a summary of the actions taken in response to complaints referred by the board.
    Subd. 9. Data Practices Act. The board is subject to chapter 13, the Minnesota
Government Data Practices Act, and shall protect from unlawful disclosure data classified
as not public.
    Subd. 10. Official records. The board shall make and preserve all records necessary
to a full and accurate knowledge of its official activities in accordance with section 15.17.

    Sec. 4. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:
    Subdivision 1. License required; rules; time credit. No person individual shall
engage in or work at the business of a contracting high pressure pipefitter unless issued an
individual contracting pipefitter license to do so by the department of Labor and Industry
under rules adopted by the board. No license shall be required for repairs on existing
installations. No person individual shall engage in or work at the business of journeyman
high pressure pipefitter unless issued an individual journeyman pipefitter competency
license to do so by the department of Labor and Industry under rules adopted by the board.
A person possessing an individual contracting pipefitter competency license may also
work as a journeyman high pressure pipefitter.
    No person, partnership, firm, or corporation shall construct or install high pressure
piping, nor install high pressure piping in connection with the dealing in and selling of high
pressure pipe material and supplies, unless, at all times, a person individual possessing a
contracting high pressure pipefitter individual competency license or a journeyman high
pressure pipefitter individual competency license is responsible for ensuring that the high
pressure pipefitting work conducted by the person, partnership, firm, or corporation being
is in conformity with Minnesota Statutes and Minnesota Rules.
    The Department of Labor and Industry board shall prescribe rules, not inconsistent
herewith, for the examination and individual competency licensing of contracting high
pressure pipefitters and journeyman high pressure pipefitters and for issuance of permits
by the department and municipalities for the installation of high pressure piping.
    An employee performing the duties of inspector for the Department of Labor and
Industry in regulating pipefitting shall not receive time credit for the inspection duties
when making an application for a license required by this section.

    Sec. 5. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:
    Subd. 2. High pressure pipefitting business license. Before obtaining a permit
for high pressure piping work, a person, partnership, firm, or corporation must obtain or
utilize a business with a high pressure piping business license.
    A person, partnership, firm, or corporation must have at all times as a full-time
employee at least one individual holding an individual contracting high pressure pipefitter
competency license. Only full-time employees who hold individual contracting high
pressure pipefitter licenses are authorized to obtain high pressure piping permits in the
name of the business. The individual contracting high pressure pipefitter competency
license holder can be the employee of only one high pressure piping business at a time.
    To retain its business license without reapplication, a person, partnership, firm, or
corporation holding a high pressure piping business license that ceases to employ a person
an individual holding an individual contracting high pressure pipefitter competency
license shall have 60 days from the last day of employment of its previous individual
contracting pipefitter competency license holder to employ another license holder. The
department of Labor and Industry must be notified no later than five days after the last day
of employment of the previous license holder.
    No high pressure pipefitting work may be performed during any period when the
high pressure pipefitting business does not have an individual contracting high pressure
pipefitter competency license holder on staff. If a license holder is not employed within
60 days after the last day of employment of the previous license holder, the pipefitting
business license shall lapse.
    The Department of Labor and Industry board shall prescribe by rule procedures for
application for and issuance of business licenses and fees.

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

    Sec. 7. Minnesota Statutes 2006, section 326.50, is amended to read:
326.50 LICENSE APPLICATION; FEES AND RENEWAL.
    Application for an individual contracting high pressure pipefitter competency or an
individual journeyman high pressure pipefitter competency license shall be made to the
department of Labor and Industry, with fees. The applicant shall be licensed only after
passing an examination developed and administered by the department of Labor and
Industry in accordance with rules adopted by the board. A competency license issued by
the department shall expire on December 31 of each year. A renewal application must be
received by the department within one year after expiration of the competency license. A
license that has been expired for more than one year cannot be renewed, and can only be
reissued if the applicant submits a new application for the competency license, pays a new
application fee, and retakes and passes the applicable license examination.

    Sec. 8. Minnesota Statutes 2006, section 326.975, subdivision 1, is amended to read:
    Subdivision 1. Generally. (a) In addition to any other fees, each applicant for a
license under sections 326.83 to 326.98 shall pay a fee to the contractor's recovery fund.
The contractor's recovery fund is created in the state treasury and must be administered
by the commissioner in the manner and subject to all the requirements and limitations
provided by section 82.43 with the following exceptions:.
    (1) each licensee who renews a license shall pay in addition to the appropriate
renewal fee an additional fee which shall be credited to the contractor's recovery fund. The
amount of the fee shall be based on the licensee's gross annual receipts for the licensee's
most recent fiscal year preceding the renewal, on the following scale:

Fee
Gross Receipts

$100
under $1,000,000

$150
$1,000,000 to $5,000,000

$200
over $5,000,000
Any person who receives a new license shall pay a fee based on the same scale;
    (2) (b) The purpose of this fund is:
    (i) (1) to compensate any aggrieved owner or lessee of residential property located
within this state who obtains a final judgment in any court of competent jurisdiction
against a licensee licensed under section 326.84, on grounds of fraudulent, deceptive, or
dishonest practices, conversion of funds, or failure of performance arising directly out
of any transaction when the judgment debtor was licensed and performed any of the
activities enumerated under section 326.83, subdivision 19, on the owner's residential
property or on residential property rented by the lessee, or on new residential construction
which was never occupied prior to purchase by the owner, or which was occupied by the
licensee for less than one year prior to purchase by the owner, and which cause of action
arose on or after April 1, 1994; and
    (ii) (2) to reimburse the Department of Commerce Labor and Industry for all legal
and administrative expenses, including staffing costs, incurred in administering the fund;.
    (3) Nothing may obligate the fund for more than $50,000 per claimant, nor more
than $75,000 per licensee; and.
    (4) Nothing may obligate the fund for claims based on a cause of action that arose
before the licensee paid the recovery fund fee set in clause (1), or as provided in section
326.945, subdivision 3.
    (b) (c) Should the commissioner pay from the contractor's recovery fund any amount
in settlement of a claim or toward satisfaction of a judgment against a licensee, the
license shall be automatically suspended upon the effective date of an order by the court
authorizing payment from the fund. No licensee shall be granted reinstatement until the
licensee has repaid in full, plus interest at the rate of 12 percent a year, twice the amount
paid from the fund on the licensee's account, and has obtained a surety bond issued by an
insurer authorized to transact business in this state in the amount of at least $40,000.

    Sec. 9. Minnesota Statutes 2006, section 326.992, is amended to read:
326.992 BOND REQUIRED FOR CERTAIN CONTRACTORS.
    (a) A person contracting to do gas, heating, ventilation, cooling, air conditioning,
fuel burning, or refrigeration work must give bond to the state in the amount of
$25,000 for all work entered into within the state. The bond must be for the benefit of
persons suffering financial loss by reason of the contractor's failure to comply with the
requirements of the State Mechanical Code. A bond given to the state must be filed with
the commissioner of administration labor and industry and is in lieu of all other bonds to
any political subdivision required for work covered by this section. The bond must be
written by a corporate surety licensed to do business in the state.
    (b) The commissioner of administration labor and industry may charge each person
giving bond under this section an annual bond filing fee of $15. The money must be
deposited in a special revenue fund and is appropriated to the commissioner to cover the
cost of administering the bond program.

    Sec. 10. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING
SYSTEMS.
    The commissioner of administration may not use the authority under Minnesota
Statutes, section 16B.37, to modify transfers of authority in this act.

    Sec. 11. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH
PRESSURE PIPING SYSTEMS.
    The governor must complete the appointments required by Minnesota Statutes,
section 326.471, no later than July 1, 2007. The commissioner of labor and industry
shall convene the first meeting of the Board of High Pressure Piping Systems no later
than September 1, 2007.

ARTICLE 5
IRON RANGE RESOURCES AND REHABILITATION BOARD

    Section 1. Minnesota Statutes 2006, section 298.227, is amended to read:
298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
    An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the
fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees.
The review must be completed no later than six months after the producer presents a
proposal for expenditure of the funds to the committee. The funds held pursuant to this
section may be released only for acquisition of plant and stationary mining equipment and
facilities for the producer or for research and development in Minnesota on new mining, or
taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure to be used for the same purpose of at least 50 percent of the distribution based
on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals for
expenditures of money from the fund beginning the day following final enactment, the
commissioner may not release the funds before the next scheduled meeting of the board.
If the board rejects a proposed expenditure, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses
money which has been released from the fund prior to the day following final enactment to
procure haulage trucks, mobile equipment, or mining shovels, and the producer removes
the piece of equipment from the taconite tax relief area defined in section 273.134 within
ten years from the date of receipt of the money from the fund, a portion of the money
granted from the fund must be repaid to the taconite economic development fund. The
portion of the money to be repaid is 100 percent of the grant if the equipment is removed
from the taconite tax relief area within 12 months after receipt of the money from the fund,
declining by ten percent for each of the subsequent nine years during which the equipment
remains within the taconite tax relief area. If a taconite production facility is sold after
operations at the facility had ceased, any money remaining in the fund for the former
producer may be released to the purchaser of the facility on the terms otherwise applicable
to the former producer under this section. If a producer fails to provide matching funds
for a proposed expenditure within six months after the commissioner approves release
of the funds, the funds are available for release to another producer in proportion to the
distribution provided and under the conditions of this section. Any portion of the fund
which is not released by the commissioner within two years of its deposit in the fund shall
be divided between the taconite environmental protection fund created in section 298.223
and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of the unreleased funds shall be
distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.
EFFECTIVE DATE.This section is effective for proposals for expenditures of
money from the fund the day following final enactment.

    Sec. 2. APPROPRIATION; IRON RANGE RESOURCES AND
REHABILITATION BOARD.
    (a) $575,000 is appropriated from the Iron Range Resources and Rehabilitation
Board fund for fiscal year 2008 for allocation in this section:
    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other
infrastructure to a peat project in Spencer Township in Aitkin County;
    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham
Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent
endowment for the preservation;
    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the
organization to employ youth for the construction of community centers;
    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field
construction; and
    (5) $75,000 is for a grant to the city of Chisholm to improve infrastructure at the
city-owned baseball field.
    These are onetime appropriations. * (The preceding section was indicated as
vetoed by the governor.)

    Sec. 3. IRRRB BUILDING.
    The Iron Range Resources and Rehabilitation Board office building in Eveleth,
Minnesota is designated and named the Joe Begich Building and shall be signed as such
at every entrance.

ARTICLE 6
ELECTRICAL

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

    Sec. 2. [326.2411] BOARD OF ELECTRICITY.
    Subdivision 1. Composition. (a) The Board of Electricity shall consist of 12
members. Eleven members shall be appointed by the governor with the advice and consent
of the senate and shall be voting members. Appointments of members by the governor
shall be made in accordance with section 15.066. If the senate votes to refuse to consent
to an appointment of a member made by the governor, the governor shall appoint a new
member with the advice and consent of the senate. One member shall be the commissioner
of labor and industry or the commissioner's designee, who shall be a voting member. Of
the 11 appointed members, the composition shall be as follows:
    (1) one member shall be an electrical inspector;
    (2) two members shall be representatives of the electrical suppliers in rural areas;
    (3) two members shall be master electricians, who shall be contractors;
    (4) two members shall be journeyman electricians;
    (5) one member shall be a registered consulting electrical engineer;
    (6) two members shall be power limited technicians, who shall be technology
system contractors primarily engaged in the business of installing technology circuits
or systems; and
    (7) one member shall be a public member as defined by section 214.02.
    The electrical inspector shall be appointed to a term to end December 31, 2011. One
of the rural electrical suppliers shall be appointed for a term to end December 31, 2011,
and one rural electrical supplier shall serve for a term to end December 31, 2010. The
consulting electrical engineer shall be appointed for a term to end December 31, 2011.
One of the master electrician contractors shall be appointed for a term to end December
31, 2011, and one master electrician contractor shall be appointed for a term to end
December 31, 2010. One of the journeyman electricians shall be appointed for a term to
end December 31, 2011, and one journeyman electrician shall be appointed for a term to
end December 31, 2010. One of the power limited technicians shall be appointed for a
term to end December 31, 2011, and one power limited technician shall be appointed for
a term to end December 31, 2010. The public member shall be appointed for a term to
end December 31, 2010.
    (b) The consulting electrical engineer must possess a current Minnesota professional
engineering license and maintain the license for the duration of the term served on the
board. All other appointed members, except the public member and the representatives of
electrical suppliers in rural areas, must possess a current electrical license issued by the
Department of Labor and Industry and maintain that license for the duration of their terms.
All appointed members must be residents of Minnesota at the time of and throughout
their terms. The term of any appointed member who does not maintain membership
qualification status shall end on the date of status change and the governor shall appoint
a replacement member. It is the responsibility of the member to notify the board of a
change in the member's status.
    (c) For appointed members, except the initial terms designated in paragraph (a), each
term shall be three years with the terms ending on the first Monday in January. Members
appointed by the governor shall be limited to three consecutive terms. The governor shall,
all or in part, reappoint the current members or appoint replacement members with the
advice and consent of the senate. Midterm vacancies shall be filled for the remaining
portion of the term. Vacancies occurring with less than six months time remaining in the
term shall be filled for the existing term and the following three-year term. Members may
serve until their successors are appointed but in no case later than July 1 in a year in
which the term expires unless reappointed.
    Subd. 2. Powers; duties; administrative support. (a) The board shall have the
power to:
    (1) elect its chair, vice-chair, and secretary;
    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the
board, and contain such other provisions as may be useful and necessary for the efficient
conduct of the business of the board;
    (3) the Minnesota Electrical Code shall be the most current edition of the National
Electrical Code upon its adoption by the board and any amendments thereto as adopted
by the board. The board shall adopt the most current edition of the National Electrical
Code and any amendments thereto pursuant to chapter 14 and as provided in subdivision
6, paragraphs (b) and (c);
    (4) review requests for final interpretations and issue final interpretations as provided
in section 16B.63, subdivision 5;
    (5) adopt rules that regulate the licensure or registration of electrical businesses,
electrical contractors, master electricians, journeyman electricians, class A installer, class
B installer, power limited technicians, and other persons who perform electrical work.
The board shall adopt these rules pursuant to chapter 14 and as provided in subdivision
6, paragraphs (d) and (e);
    (6) adopt rules that regulate continuing education for individuals licensed or
registered as electrical businesses, electrical contractors, master electricians, journeyman
electricians, class A installer, class B installer, power limited technicians, and other
persons who perform electrical work. The board shall adopt these rules pursuant to
chapter 14 and as provided in subdivision 6, paragraph (e);
    (7) advise the commissioner regarding educational requirements for electrical
inspectors;
    (8) refer complaints or other communications, whether orally or in writing, that
allege or imply a violation of a statute, rule, or order that the commissioner has the
authority to enforce pertaining to code compliance, licensure, or an offering to perform or
performance of unlicensed electrical services to the commissioner under subdivision 8;
    (9) approve per diem and expenses deemed necessary for its members as provided in
subdivision 3;
    (10) approve license reciprocity agreements;
    (11) select from its members individuals to serve on any other state advisory council,
board, or committee; and
    (12) recommend the fees for licenses and certifications.
    Except for the powers granted to the Board of Electricity, the commissioner of labor
and industry shall administer and enforce the provisions of sections 326.241 to 326.248
and any rules promulgated pursuant thereto.
    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
    (c) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by the other boards. The
commissioner shall provide staff support to the board. The support includes professional,
legal, technical, and clerical staff necessary to perform rulemaking and other duties
assigned to the board. The commissioner of labor and industry shall supply necessary
office space and supplies to assist the board in its duties.
    Subd. 3. Compensation. (a) Members of the board may be compensated at the rate
of $55 per day spent on board activities, when authorized by the board, plus expenses, in
the same manner and amount as authorized by the commissioner's plan adopted under
section 43A.18, subdivision 2. Members who, as a result of time spent attending board
meetings, incur child care expenses that would not otherwise have been incurred, may be
reimbursed for those expenses upon board authorization.
    (b) Members who are state employees or employees of political subdivisions of
the state must not receive the daily payment for activities that occur during working
hours for which they are compensated by the state or political subdivision. However, a
state or political subdivision employee may receive the daily payment if the employee
uses vacation time or compensatory time accumulated in accordance with a collective
bargaining agreement or compensation plan for board activities. Members who are state
employees or employees of the political subdivisions of the state may receive the expenses
provided for in this subdivision unless the expenses are reimbursed by another source.
Members who are state employees or employees of political subdivisions of the state
may be reimbursed for child care expenses only for time spent on board activities that
are outside their working hours.
    (c) The board shall adopt internal standards prescribing what constitutes a day spent
on board activities for purposes of making daily payments under this subdivision.
    Subd. 4. Removal; vacancies. (a) An appointed member of the board may be
removed by the governor at any time (1) for cause, after notice and hearing, or (2) after
missing three consecutive meetings. The chair of the board shall inform the governor of
an appointed member missing three consecutive meetings. After the second consecutive
missed meeting and before the next meeting, the secretary of the board shall notify the
appointed member in writing that the member may be removed for missing the next
meeting. In the case of a vacancy on the board, the governor shall, with the advice
and consent of the senate, appoint a person to fill the vacancy for the remainder of the
unexpired term.
    (b) Vacancies shall be filled pursuant to section 15.0597, subdivisions 5 and 6.
    Subd. 5. Membership vacancies within three months of appointment.
    Notwithstanding any law to the contrary, when a seat on the board becomes vacant within
three months after being filled through the appointment process, the governor may,
upon notification to the Office of the Secretary of State, choose a new member from the
applications on hand and need not repeat the process.
    Subd. 6. Officers, quorum, voting. (a) The board shall elect annually from its
members a chair, vice-chair, and secretary. A quorum of the board shall consist of a
majority of members of the board qualified to vote on the matter in question. All questions
concerning the manner in which a meeting is conducted or called that are not covered
by statute shall be determined by Robert's Rules of Order (revised) unless otherwise
specified by the bylaws.
    (b) Except as provided in paragraph (c), each Electrical Code amendment considered
by the board that receives an affirmative two-thirds or more majority vote of all of the
voting members of the board shall be included in the next Electrical Code rulemaking
proceeding initiated by the board. If an Electrical Code amendment considered, or
reconsidered, by the board receives less than a two-thirds majority vote of all of the voting
members of the board, the Electrical Code amendment shall not be included in the next
Electrical Code rulemaking proceeding initiated by the board.
    (c) The board may reconsider Electrical Code amendments during an active
Electrical Code rulemaking proceeding in which the amendment previously failed to
receive a two-thirds or more majority vote of all of the voting members of the board only if
new or updated information that affects the Electrical Code amendment is presented to the
board. The board may also reconsider failed Electrical Code amendments in subsequent
Electrical Code rulemaking proceedings.
    (d) Except as provided in paragraph (e), each proposed rule and rule amendment
considered by the board pursuant to the rulemaking authority specified in subdivision 2,
paragraph (a), clauses (5) and (6), that receives an affirmative majority vote of the all the
voting members of the board shall be included in the next rulemaking proceeding initiated
by the board. If a proposed rule or rule amendment considered, or reconsidered, by the
board receives less than an affirmative majority vote of all of the voting members of the
board, the proposed rule or rule amendment shall not be included in the next rulemaking
proceeding initiated by the board.
    (e) The board may reconsider a proposed rule or rule amendment during an
active rulemaking proceeding in which the amendment previously failed to receive an
affirmative majority vote of all of the voting members of the board only if new or updated
information that affects the proposed rule or rule amendment is presented to the board.
The board may also reconsider a failed proposed rule or rule amendment in subsequent
rulemaking proceedings.
    Subd. 7. Board meetings. (a) The board shall hold meetings at such times as the
board shall specify. Notice and conduct of all meetings shall be pursuant to chapter 13D
and in such a manner as the bylaws may provide.
    (b) If compliance with section 13D.02 is impractical, the board may conduct a
meeting of its members by telephone or other electronic means so long as the following
conditions are met:
    (1) all members of the board participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
    (2) members of the public present at the regular meeting location of the board can
hear clearly all discussion and testimony and all votes of members of the board and, if
needed, receive those services required by sections 15.44 and 15.441;
    (3) at least one member of the board is physically present at the regular meeting
location; and
    (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
    Each member of the board participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and
participating in all proceedings.
    If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board, to the extent practical, shall allow a person to monitor
the meeting electronically from a remote location. The board may require the person
making such a connection to pay for documented costs that the board incurs as a result of
the additional connection.
    If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and that a
person may monitor the meeting electronically from a remote location. The timing and
method of providing notice is governed by section 13D.04.
    Subd. 8. Complaints. (a) The board shall promptly forward to the commissioner
the substance of any complaint or communication it receives, whether in writing or orally,
that alleges or implies a violation of a statute, rule, or order that the commissioner has the
authority to enforce pertaining to the license or registration of any person authorized by the
department to provide electrical services, the performance or offering to perform electrical
services requiring licensure by an unlicensed person, or Electrical Code compliance. Each
complaint or communication that is forwarded to the commissioner shall be submitted
on a form provided by the commissioner.
    (b) The commissioner shall advise the board of the status of a complaint within 90
days after the board's written submission is received, or within 90 days after the board
is provided with a written request for additional information or documentation from the
commissioner or the commissioner's designee, whichever is later. The commissioner shall
advise the board of the disposition of a complaint referred by the board within 180 days
after the board's written submission is received. The commissioner shall annually report to
the board a summary of the actions taken in response to complaints referred by the board.
    Subd. 9. Data Practices Act. The board is subject to chapter 13, the Minnesota
Government Data Practices Act, and shall protect from unlawful disclosure data classified
as not public.
    Subd. 10. Official records. The board shall make and preserve all records necessary
to a full and accurate knowledge of its official activities in accordance with section 15.17.

    Sec. 3. Minnesota Statutes 2006, section 326.242, subdivision 3d, is amended to read:
    Subd. 3d. Power limited technician. (a) Except as otherwise provided by law,
no person individual shall install, alter, repair, plan, lay out, or supervise the installing,
altering, or repairing, planning, or laying out of electrical wiring, apparatus, or equipment
for technology circuits or systems unless:
    (1) the person individual is licensed by the board commissioner as a power limited
technician; and
    (2) the electrical work is:
    (i) for a licensed contractor and the person individual is an employee, partner, or
officer of, or is the licensed contractor; or
    (ii) performed under the direct supervision of a master electrician or power limited
technician also employed by the person's individual's employer on technology circuits,
systems, apparatus, equipment, or facilities that are owned or leased by the employer that
are located within the limits of property operated, maintained, and either owned or leased,
operated, and maintained by the employer.
    (b) An applicant for a power limited technician's license shall (1) be a graduate
of a four-year electrical course in offered by an accredited college or university; or (2)
have had at least 36 months' experience, acceptable to the board, in planning for, laying
out, supervising, and installing, altering and repairing wiring, apparatus, or equipment
for power limited systems, provided however, that the board may by rule provide for the
allowance of up to 12 months (2,000 hours) of experience credit for successful completion
of a two-year post high school electrical course or other technical training approved by
the board.
    (c) The board may initially set experience requirements without rulemaking, but
must adopt rules before July 1, 2004.
    (d) Licensees must attain eight 16 hours of continuing education acceptable to
the board every renewal period.
    (e) A person who has submitted an application by June 30, 2003, to take the alarm
and communications examination administered by the board, and who has achieved a
minimal score of 70 percent on the examination by September 30, 2003, may obtain a
power limited technician license without further examination by submitting an application
and a license fee of $30.
    (f) (d) A company holding an alarm and communication license as of June 30, 2003,
may designate one person individual who may obtain a power limited technician license
without passing an examination administered by the board commissioner by submitting an
application and license fee of $30.
    (g) (e) A person who has submitted an application by September 30, 2005 December
31, 2007, to take the power limited technician examination administered by the board
department is not required to meet the qualifications set forth in paragraph (b).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:
    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual
means an individual who has not been licensed by the department to perform specific
electrical work. An unlicensed individual shall not perform electrical work required to
be performed by a licensed individual unless the individual has first registered with the
department as an unlicensed individual. Thereafter, an unlicensed individual shall not
perform electrical work required to be performed by a licensed individual unless the work
is performed under the personal direct supervision of a person an individual actually
licensed to perform such work and. The licensed electrician individual and unlicensed
persons are individual must be employed by the same employer. Licensed persons
individuals shall not permit unlicensed persons individuals to perform electrical work
except under the personal direct supervision of a person an individual actually licensed to
perform such work. Unlicensed persons individuals shall not supervise the performance of
electrical work or make assignments of electrical work to unlicensed persons individuals.
Except for technology circuit or system work, licensed persons individuals shall supervise
no more than two unlicensed persons individuals. For technology circuit or system
work, licensed persons individuals shall supervise no more than three unlicensed persons
individuals.
    (b) Notwithstanding any other provision of this section, no person individual other
than a master electrician or power limited technician shall plan or lay out electrical wiring,
apparatus, or equipment for light, heat, power, or other purposes, except circuits or
systems exempted from personal licensing by subdivision 12, paragraph (b).
    (c) Contractors employing unlicensed persons performing individuals to perform
electrical work shall maintain records establishing compliance with this subdivision,
which that shall designate identify all unlicensed persons individuals performing electrical
work, except for persons working on circuits or systems exempted from personal licensing
by subdivision 12, paragraph (b), and shall permit the board department to examine and
copy all such records as provided for in section 326.244, subdivision 6.
    (d) When a licensed individual supervises the electrical work of an unlicensed
individual, the licensed individual is responsible for ensuring that the electrical work
complies with the Minnesota Electrical Act and rules adopted under the act.

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

    Sec. 6. Minnesota Statutes 2006, section 326.242, subdivision 8, is amended to read:
    Subd. 8. License, registration, and renewal fees; expiration. All licenses issued
hereunder shall expire in a manner as provided by the board. (a) Unless revoked or
suspended under this chapter, all licenses issued or renewed under this section expire
on the date specified in this subdivision. Master licenses expire March 1 of each
odd-numbered year after issuance or renewal. Electrical contractor licenses expire March
1 of each even-numbered year after issuance or renewal. Technology system contractor
licenses expire August 1 of each even-numbered year after issuance or renewal. All
other personal licenses expire two years from the date of original issuance and every two
years thereafter. Registrations of unlicensed individuals expire one year from the date of
original issuance and every year thereafter.
    (b) Fees, as set by the board, shall be payable for application and examination, and
for the original issuance and each subsequent renewal of the following, are:
    (1) For each personal license application and examination: $35;
    Class A Master.
    Class B Master.
    Class A Journeyman, Class B Journeyman, Installer, Power Limited Technician, or
Special Electrician.
    (2) For original issuance of original license and each subsequent renewal of:
    Class A Master. or master special electrician, including master elevator constructor:
$40 per year;
    Class B Master.: $25 per year;
    Power Limited Technician.: $15 per year;
    Class A Journeyman, Class B Journeyman, Installer, or Special Electrician. other
than master special electrician: $15 per year;
    Electrical contractor: $100 per year.
    Technology Systems Contractor Unlicensed individual registration: $15 per year.
    (c) If any new license is issued in accordance with this subdivision for less than two
years, the fee for the license shall be prorated on an annual basis.
    (d) A license fee may not be refunded after a license is issued or renewed. However,
if the fee paid for a license was not prorated in accordance with this subdivision, the
amount of the overpayment shall be refunded.
    (e) Any contractor who seeks reissuance of a license after it has been revoked or
suspended under this chapter shall submit a reissuance fee of $100 before the license is
reinstated.
    (f) The fee for the issuance of each duplicate license is $15.
    (3) (g) An individual or contractor who fails to renew a license before 30 days after
the expiration or registration of the license must submit a late fee equal to one year's
license fee in addition to the full renewal fee. Fees for renewed licenses or registrations
are not prorated. An individual or contractor that fails to renew a license or registration by
the expiration date is unlicensed until the license or registration is renewed.

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

    Sec. 8. Minnesota Statutes 2006, section 326.2441, is amended to read:
326.2441 INSPECTION FEE SCHEDULE.
    Subdivision 1. Schedule. State electrical inspection fees shall be paid according
to calculated in accordance with subdivisions 2 to 13 15.
    Subd. 2. Fee for each separate inspection. The minimum fee for each separate
inspection of an installation, replacement, alteration, or repair is $20. $35. Except as
otherwise provided in this section, the maximum number of separate inspections allowed
without payment of an additional fee is the whole number resulting from dividing by
35 the total fee calculated in accordance with this section. Where additional separate
inspections are necessary, additional fees are required to result in a value equal to the total
number of separate inspections multiplied by 35. The fee for any inspections needed after
a "final inspection" is performed shall be calculated without consideration of any fee
paid before the final inspection.
    Subd. 3. Fee for services, generators, other power supply sources, or feeders to
separate structures. The inspection fee for the installation, addition, alteration, or repair
of each service, change of service, temporary service, generator, other power supply
source, or feeder to a separate structure is:
    (1) 0 ampere to and including 400 ampere capacity, $25 $35;
    (2) 401 ampere to and including 800 ampere capacity, $50 $60; and
    (3) ampere capacity above 800, $75 $100.
    Where multiple disconnects are grouped at a single location and are supplied by a
single set of supply conductors the cumulative rating of the overcurrent devices shall be
used to determine the supply ampere capacity.
    Subd. 4. Fee for circuits, feeders, feeder taps, or sets of transformer secondary
conductors. The inspection fee for the installation, addition, alteration, or repair of
each circuit, feeder, feeder tap, or set of transformer secondary conductors, including
the equipment served, is:
    (1) 0 ampere to and including 200 ampere capacity, $5 $6; and
    (2) ampere capacity above 200, $10 $15.
    Where existing feeders and circuits are reconnected to overcurrent devices installed
as part of the replacement of an existing disconnect, switchboard, motor control center, or
panelboard, the inspection fee for each circuit or feeder is $2.
    Subd. 5. Limitations to fees of subdivisions 3 and 4 Inspection fee for dwellings.
    (a) The inspection fee for a one-family dwelling and each dwelling unit of a two-family
dwelling with a supply of up to 500 amperes where a combination of ten or more sources
of supply, feeders, or circuits are installed, added, altered, repaired, or extended is $80. is
the following:
    (1) the fee for each service or other source of power as provided in subdivision 3;
    (2) $100 for up to 30 feeders and circuits; and
    (3) for each additional feeder or circuit, the fee as provided in subdivision 4.
This fee applies to each separate installation for new dwellings and additions, alterations,
or repairs to existing dwellings and includes not more than two inspections. where 15
or more feeders or circuits are installed or extended in connection with any addition,
alteration, or repair to existing dwellings. Where existing feeders and circuits are
reconnected to overcurrent devices installed as part of the replacement of an existing
panelboard, the fee for each reconnected feeder or circuit is $2. The maximum number
of separate inspections shall be determined in accordance with subdivision 2. The
fee for additional inspections or other installations is that specified in subdivisions 2
to, 4, 6, and 8. The installer may submit fees for additional inspections when filing the
request for electrical inspection. The fee for each detached accessory structure directly
associated with a dwelling unit shall be calculated in accordance with subdivisions 3 and
4. When included on the same request for electrical inspection form, inspection fees for
detached accessory structures directly associated with the dwelling unit may be combined
with the dwelling unit fees to determine the maximum number of separate inspections in
accordance with subdivision 2.
    (b) The inspection fee for each dwelling unit of a multifamily dwelling with three
to 12 or more dwelling units is $50 and the fee for each additional dwelling unit is $25.
$70 for a combination of up to 20 feeders and circuits and $6 for each additional feeder
or circuit. This fee applies to each separate installation for each new dwelling unit and
where ten or more feeders or circuits are installed or extended in connection with any
addition, alteration, or repair to existing dwelling units. Where existing feeders or circuits
are reconnected to overcurrent devices installed as part of the replacement of an existing
panelboard, the fee for each reconnected feeder or circuit is $2. The maximum number
of separate inspections for each dwelling unit shall be determined in accordance with
subdivision 2. The fee for additional inspections or for inspection of other installations
is that specified in subdivisions 2, 4, 6, and 8. These fees include only inspection of the
wiring within individual dwelling units and the final feeder to that unit. This limitation is
subject to the following conditions:
    (1) where the multifamily dwelling is provided with common service equipment
and each dwelling unit is supplied by a separate feeder or feeders extended from common
service or distribution equipment. The fee for multifamily dwelling services or other
power source supplies and all other circuits is that specified in subdivisions 2 to 4; and.
    (2) this limitation applies only to new installations for multifamily dwellings where
the majority of the individual dwelling units are available for inspection during each
inspection trip.
    (c) A separate request for electrical inspection form must be filed for each dwelling
unit that is supplied with an individual set of service entrance conductors. These fees are
the one-family dwelling rate specified in paragraph (a).
    Subd. 6. Additions to fees of subdivisions 3 to 5. (a) The fee for the electrical
supply for each manufactured home park lot is $25 $35. This fee includes the service or
feeder conductors up to and including the service equipment or disconnecting means.
The fee for feeders and circuits that extend from the service or disconnecting means is
that specified in subdivision 4.
    (b) The fee for each recreational vehicle site electrical supply equipment is $5 $6
for each circuit originating within the equipment. The fee for recreational vehicle park
services, feeders, and circuits is that specified in subdivisions 3 and 4.
    (c) The fee for each street, parking lot, or outdoor area lighting standard is $1, and the
fee for each traffic signal standard is $5. Circuits originating within the standard or traffic
signal controller shall not be used when computing calculating the fee for each standard.
    (d) The fee for transformers for light, heat, and power is $10 $15 for transformers
rated up to ten kilovolt-amperes and $20 $30 for transformers rated in excess of ten
kilovolt-amperes. The previous sentence does not apply to Class 1 transformers or power
supplies for Class 1 power-limited circuits or to Class 2 or Class 3 transformers or power
supplies.
    (e) The fee for transformers and electronic power supplies for electric signs and
outline lighting is $5 per unit.
    (f) The fee for alarm, communication, remote control, and signaling technology
circuits or systems, and circuits of less than 50 volts, is 50 75 cents for each system device
or apparatus.
    (g) The fee for each separate inspection of the bonding for a swimming pool, spa,
fountain, an equipotential plane for an agricultural confinement area, or similar installation
shall be $20 is $35. Bonding conductors and connections require an inspection before
being concealed.
    (h) The fee for all wiring installed on center pivot irrigation booms is $40 $35 plus
$5 for each electrical drive unit.
    (i) The fee for retrofit modifications to existing lighting fixtures is 25 cents per
lighting fixture luminaire.
    (j) When a separate inspection of a concrete-encased grounding electrode is
performed, the fee is $35.
    (k) The fees required by subdivisions 3 and 4 are doubled for installations over
600 volts.
    Subd. 7. Investigation fees: work without a request for electrical inspection.
    (a) Whenever any work for which a request for electrical inspection is required by the
board has begun without the request for electrical inspection form being filed with the
board commissioner, a special investigation shall be made before a request for electrical
inspection form is accepted by the board.
    (b) An investigation fee, in addition to the full fee required by subdivisions 1
to 6, shall be paid before an inspection is made. The investigation fee is two times the
hourly rate minimum fee specified in subdivision 10 2 or the inspection fee required
by subdivisions 1 to 6, whichever is greater, not to exceed $1,000. The payment of the
investigation fee does not exempt any person from compliance with all other provisions of
the board department rules or statutes nor from any penalty prescribed by law.
    Subd. 8. Reinspection fee. Notwithstanding the provisions of subdivisions 2 and 5,
when reinspection is necessary to determine whether unsafe conditions identified during a
final inspection have been corrected and the conditions are not the subject of an appeal
pending before the board commissioner or any court, a reinspection fee of $20 may $35
shall be assessed in writing by the inspector.
    Subd. 9. Supplemental fee. When inspections scheduled by the installer are
preempted, obstructed, prevented, or otherwise not able to be completed as scheduled due
to circumstances beyond the control of the inspector, a supplemental inspection fee of
$20 may $35 shall be assessed in writing by the inspector.
    Subd. 10. Special inspection. For inspections not covered in this section, or for
requested special inspections or services, the fee shall be $30 is $80 per hour, including
travel time, plus 31 cents the standard mileage rate per mile traveled, plus the reasonable
cost of equipment or material consumed. This provision is applicable to inspection
of empty conduits and other jobs as may be determined by the board commissioner.
This fee may also be assessed when installations are not accessible by roadway and
require alternate forms of transportation. or are located in the Northwest Angle, or when
inspections are performed outside of Minnesota. For purposes of this subdivision,
the standard mileage rate is the standard mileage rate effective at the time of travel,
as established by the Internal Revenue Service for computing the deductible costs of
operating an automobile for business expense purposes.
    Subd. 11. Inspection of transitory projects. (a) For inspection of transitory
projects including, but not limited to, festivals, fairs, carnivals, circuses, shows, production
sites, and portable road construction plants, the inspection procedures and fees are as
specified in paragraphs (b) to (i).
    (b) The fee for inspection of each generator or other source of supply is that specified
in subdivision 3. A like fee is required at each engagement or setup.
    (c) In addition to the fee for generators or other sources of supply, there must be an
inspection of all installed feeders, circuits, and equipment at each engagement or setup at
the hourly rate specified in subdivision 10, with a two-hour one-hour minimum.
    (d) An owner, operator, or appointed representative of a transitory enterprise
including, but not limited to, festivals, fairs, carnivals, circuses, production companies,
shows, portable road construction plants, and similar enterprises shall notify the board
commissioner of its itinerary or schedule and make application for initial inspection a
minimum of 14 days before its first engagement or setup. An owner, operator, or appointed
representative of a transitory enterprise who fails to notify the board commissioner 14
days before its first engagement or setup may be subject to the investigation fees specified
in subdivision 7. The owner, operator, or appointed representative shall request inspection
and pay the inspection fee for each subsequent engagement or setup at the time of the initial
inspection. For subsequent engagements or setups not listed on the itinerary or schedule
submitted to the board commissioner and where the board commissioner is not notified at
least 48 hours in advance, a charge of $100 may be made in addition to all required fees.
    (e) Amusement rides, devices, concessions, attractions, or other units must be
inspected at their first appearance of the year. The inspection fee is $20 $35 per unit with a
supply of up to 60 amperes and $30 $40 per unit with a supply above 60 amperes.
    (f) An additional fee at the hourly rate specified in subdivision 10 must be charged
for additional time spent by each inspector if equipment is not ready or available for
inspection at the time and date specified on the application for initial inspection or the
request for electrical inspection form.
    (g) In addition to the fees specified in paragraphs (a) and (b), a fee of two hours one
hour at the hourly rate specified in subdivision 10 must be charged for inspections required
to be performed on Saturdays, Sundays, holidays, or after regular business hours.
    (h) The fee for reinspection of corrections or supplemental inspections where an
additional trip is necessary may be assessed as specified in subdivision 8.
    (i) The board may commissioner shall retain the inspection fee when an owner,
operator, or appointed representative of a transitory enterprise fails to notify the board
commissioner at least 48 hours in advance of a scheduled inspection that is canceled.
    Subd. 11a. Negotiated fee. When the fee calculated in accordance with subdivisions
2 to 11 results in a total fee that unreasonably exceeds the cost of inspection, the
commissioner may negotiate a fee that more reasonably offsets the cost of inspection.
    Subd. 12. Handling fee. The handling fee to pay the cost of printing and handling
of the paper form requesting an electrical inspection is up to $1.
    Subd. 13. National Electrical Code used for interpretation of provisions. For
purposes of interpretation of this section and Minnesota Rules, chapter 3800, the most
recently adopted edition of the National Electrical Code shall be prima facie evidence of
the definitions, interpretations, and scope of words and terms used.

ARTICLE 7
APPRENTICESHIP BOARD

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

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

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

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

ARTICLE 8
MISCELLANEOUS

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

    Sec. 2. [325E.65] SALE OF AMERICAN FLAGS.
    No person in the business of offering goods at retail may sell or offer for sale in this
state an American flag unless the flag was manufactured in the United States of America.
EFFECTIVE DATE.This section is effective January 1, 2008.

    Sec. 3. Minnesota Statutes 2006, section 327.33, subdivision 2, is amended to read:
    Subd. 2. Fees. The commissioner shall by rule establish reasonable fees for seals,
installation seals and inspections which are sufficient to cover all costs incurred in the
administration of sections 327.31 to 327.35. The commissioner shall also establish by
rule a monitoring inspection fee in an amount that will comply with the secretary's fee
distribution program. This monitoring inspection fee shall be an amount paid by the
manufacturer for each manufactured home produced in Minnesota. The monitoring
inspection fee shall be paid by the manufacturer to the secretary. The rules of the
fee distribution program require the secretary to distribute the fees collected from all
manufactured home manufacturers among states approved and conditionally approved
based on the number of new manufactured homes whose first location after leaving the
manufacturer is on the premises of a distributor, dealer or purchaser in that state. All
money collected by the commissioner through fees prescribed by sections 327.31 to
327.36 shall be deposited in the state government special revenue fund and is appropriated
to the commissioner for the purpose of administering and enforcing the Manufactured
Home Building Code under sections 327.31 to 327.36.

    Sec. 4. Minnesota Statutes 2006, section 327.33, subdivision 6, is amended to read:
    Subd. 6. Authorization as agency. The commissioner shall apply to the secretary
for approval of the commissioner as the administrative agency for the regulation of
manufactured homes under the rules of the secretary. The commissioner may make
rules for the administration and enforcement of department responsibilities as a state
administrative agency including, but not limited to, rules for the handling of citizen's
complaints. All money received for services provided by the commissioner or the
department's authorized agents as a state administrative agency shall be deposited in
the general construction code fund. The commissioner is charged with the adoption,
administration, and enforcement of the Manufactured Home Construction and Safety
Standards, consistent with rules and regulations promulgated by the United States
Department of Housing and Urban Development. The commissioner may adopt the
rules, codes, and standards necessary to enforce the standards promulgated under this
section. The commissioner is authorized to conduct hearings and presentations of views
consistent with regulations adopted by the United States Department of Housing and
Urban Development and to adopt rules in order to carry out this function.

    Sec. 5. Minnesota Statutes 2006, section 327B.04, subdivision 7, is amended to read:
    Subd. 7. Fees; licenses; when granted. Each application for a license or license
renewal must be accompanied by a fee in an amount established by the commissioner
by rule pursuant to section 327B.10. The fees shall be set in an amount which over
the fiscal biennium will produce revenues approximately equal to the expenses which
the commissioner expects to incur during that fiscal biennium while administering and
enforcing sections 327B.01 to 327B.12. All money collected by the commissioner
through fees prescribed in sections 327B.01 to 327B.12 shall be deposited in the state
government special revenue fund and is appropriated to the commissioner for purposes of
administering and enforcing the provisions of this chapter. The commissioner shall grant
or deny a license application or a renewal application within 60 days of its filing. If the
license is granted, the commissioner shall license the applicant as a dealer or manufacturer
for the remainder of the calendar year. Upon application by the licensee, the commissioner
shall renew the license for a two year period, if:
    (a) the renewal application satisfies the requirements of subdivisions 3 and 4;
    (b) the renewal applicant has made all listings, registrations, notices and reports
required by the commissioner during the preceding year; and
    (c) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to
327B.12 and all taxes, arrearages, and penalties owed to the state.

    Sec. 6. Minnesota Statutes 2006, section 462A.21, subdivision 8b, is amended to read:
    Subd. 8b. Family rental housing. It may establish a family rental housing
assistance program to provide loans or direct rental subsidies for housing for families
with incomes of up to 80 percent of state median income, or to provide grants for the
operating cost of public housing. Priority must be given to those developments with
resident families with the lowest income. The development may be financed by the
agency or other public or private lenders. Direct rental subsidies must be administered by
the agency for the benefit of eligible families. Financial assistance provided under this
subdivision to recipients of aid to families with dependent children must be in the form
of vendor payments whenever possible. Loans, grants, and direct rental subsidies under
this subdivision may be made only with specific appropriations by the legislature. The
limitations on eligible mortgagors contained in section 462A.03, subdivision 13, do not
apply to loans for the rehabilitation of existing housing under this subdivision.

    Sec. 7. Minnesota Statutes 2006, section 462A.33, subdivision 3, is amended to read:
    Subd. 3. Contribution requirement. Fifty percent of the funds appropriated for
this section must be used for challenge grants or loans which meet the requirements of this
subdivision for housing proposals with financial or in-kind contributions from nonstate
resources that reduce the need for deferred loan or grant funds from state resources. These
Challenge grants or loans must be used for economically viable homeownership or rental
housing proposals that:
    (1) include a financial or in-kind contribution from an area employer and either a unit
of local government or a private philanthropic, religious, or charitable organization; and
    (2) address the housing needs of the local work force.
    Among comparable proposals, preference must be given to proposals that include
contributions from nonstate resources for the greatest portion of the total development
cost. Comparable proposals with contributions from local units of government or private
philanthropic, religious, or charitable organizations must be given preference in awarding
grants or loans.
    For the purpose of this subdivision, an employer a contribution may consist partially
or wholly of the premium paid for federal housing tax credits.
    Preference for grants and loans shall also be given to comparable proposals that
include a financial or in-kind contribution from a unit of local government, an area
employer, and a private philanthropic, religious, or charitable organization.

    Sec. 8. Minnesota Statutes 2006, section 469.021, is amended to read:
469.021 PREFERENCES.
    As between applicants equally in need and eligible for occupancy of a dwelling
and at the rent involved, preference shall be given to disabled veterans, persons with
disabilities, and families of service persons who died in service and to families of veterans.
In admitting families of low income to dwelling accommodations in any housing project an
authority shall, as far as is reasonably practicable, give consideration to applications from
families to which aid for dependent children is payable receiving assistance under chapter
256J, and to resident families to whom public assistance or supplemental security income
for the aged, blind, and disabled is payable, when those families are otherwise eligible.

    Sec. 9. WORK GROUP.
    The commissioner of employment and economic development shall convene a work
group to evaluate the impact of the money appropriated for wage incentives and how the
wage incentive program works. The work group is to make recommendations to the
legislature by January 15, 2008.

    Sec. 10. EFFECTIVE DATE.
    Unless another effective date is expressly provided, this act is effective July 1, 2007.
Presented to the governor May 22, 2007
Signed by the governor May 25, 2007, 3:20 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569