1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             economic development, housing, and certain agencies of 
  1.4             state government; modifying programs; regulating 
  1.5             activities and practices; modifying penalty 
  1.6             provisions; changing terms; authorizing a registration 
  1.7             fee; modifying occupational safety and health 
  1.8             standards and provisions; modifying displaced 
  1.9             homemaker provisions; regulating certain insurance 
  1.10            filings; providing for certain filing fees; amending 
  1.11            Minnesota Statutes 2002, sections 60A.14, subdivision 
  1.12            1; 61A.02, subdivision 2; 61A.09, subdivision 1; 
  1.13            61A.17; 62A.02, subdivision 1, 2; 62A.11, subdivision 
  1.14            3; 70A.06, subdivision 1; 79.56, subdivisions 1, 3; 
  1.15            124D.68, subdivision 2; 175.16, subdivision 1; 177.26, 
  1.16            subdivisions 1, 2; 178.01; 178.03, subdivisions 1, 2; 
  1.17            181.9435, subdivision 1; 181.9436; 182.65, subdivision 
  1.18            2; 182.651, subdivisions 7, 8, 9, 13, 14; 182.652, 
  1.19            subdivision 1; 182.653, subdivision 3; 182.654, 
  1.20            subdivisions 2, 4, 5, 6, 11; 182.655, subdivisions 1, 
  1.21            2, 3, 5, 6, 7, 8, 9, 11, 13; 182.6555; 182.6575; 
  1.22            182.658; 182.659, subdivisions 1, 4, 6, 8; 182.66, 
  1.23            subdivision 1; 182.663, subdivision 5; 182.665; 
  1.24            182.666, subdivisions 1, 2; 182.667, subdivision 2; 
  1.25            182.668, subdivisions 2, 3; 182.6731; 239.011, by 
  1.26            adding a subdivision; 256D.05, subdivision 1; 256J.49, 
  1.27            subdivision 13; 268.0111, subdivision 4; 268.665, 
  1.28            subdivision 2; 325D.32, subdivision 10; 325D.33, 
  1.29            subdivision 8; 354D.02, subdivision 2; proposing 
  1.30            coding for new law in Minnesota Statutes, chapters 
  1.31            60A; 178; repealing Minnesota Statutes 2002, sections 
  1.32            138.91; 177.26, subdivision 3; 178.11; 182.651, 
  1.33            subdivisions 11, 15, 16, 17, 18, 19, 20; 182.6521; 
  1.34            182.653, subdivisions 4a, 4b, 4c, 4d, 4e, 4f, 4g, 5, 
  1.35            6, 7, 8, 9, 10; 182.654, subdivisions 3, 7, 10; 
  1.36            182.655, subdivisions 4, 10, 10a, 12, 14; 182.663, 
  1.37            subdivision 3; 182.668, subdivisions 1, 5; 182.672; 
  1.38            182.676; 268.96; 325D.33, subdivisions 2a, 6; 325D.37, 
  1.39            subdivision 3; 325D.371; 325D.405; 325D.415; 325D.43; 
  1.40            Minnesota Rules, parts 5205.0020; 5205.0030; 
  1.41            5205.0040; 5205.0050; 5205.0060; 5205.0065; 5205.0080; 
  1.42            5205.0100; 5205.0105; 5205.0110, subparts 1, 2a, 3, 4; 
  1.43            5205.0115; 5205.0116; 5205.0120; 5205.0130; 5205.0140; 
  1.44            5205.0150; 5205.0200; 5205.0330; 5205.0550; 5205.0560; 
  1.45            5205.0570; 5205.0580; 5205.0650; 5205.0660; 5205.0665; 
  1.46            5205.0670; 5205.0675; 5205.0685; 5205.0686; 5205.0690; 
  2.1             5205.0700; 5205.0710; 5205.0750; 5205.0755; 5205.0760; 
  2.2             5205.0765; 5205.0770; 5205.0850; 5205.0860; 5205.0865; 
  2.3             5205.0870; 5205.0880; 5205.0890; 5205.1200; 5205.1210; 
  2.4             5205.1220; 5205.1230; 5205.1400; 5206.0100, subparts 
  2.5             1, 1a, 1b, 1c, 2, 2a, 3, 3a, 4, 5, 6, 7, 7a, 8, 9, 10, 
  2.6             11, 11a, 11b, 12, 13, 14, 14a, 14b, 14c, 16, 16a, 17, 
  2.7             19; 5206.0200; 5206.0300, subparts 1, 2, 3, 6, 7; 
  2.8             5206.0400; 5206.0500; 5206.0600; 5206.0700; 5206.0800; 
  2.9             5206.1000; 5206.1100; 5206.1200; 5206.1300; 5206.1400; 
  2.10            5206.1500; 5206.1600; 5206.1700; 5206.1800; 5206.1900; 
  2.11            5206.2000; 5207.0005; 5207.0010; 5207.0020; 5207.0030; 
  2.12            5207.0035; 5207.0040; 5207.0050; 5207.0060; 5207.0100; 
  2.13            5207.0200; 5207.0210; 5207.0250; 5207.0300, subpart 1; 
  2.14            5207.0301; 5207.0302; 5207.0303; 5207.0304; 5207.0310; 
  2.15            5207.0320; 5207.0400; 5207.0410; 5207.0500; 5207.0510; 
  2.16            5207.0520; 5207.0530; 5207.0540; 5207.0600; 5207.0610; 
  2.17            5207.0620; 5207.0630; 5207.0700; 5207.0710; 5207.0720; 
  2.18            5207.0730; 5207.0740; 5207.0800; 5207.0810; 5207.0850; 
  2.19            5207.0900; 5207.0910; 5207.1000. 
  2.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.21                             ARTICLE 1 
  2.22                           APPROPRIATIONS 
  2.23                        ECONOMIC DEVELOPMENT 
  2.24  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  2.25     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.26  appropriated from the general fund, or another named fund, to 
  2.27  the agencies and for the purposes specified in this act, to be 
  2.28  available for the fiscal years indicated for each purpose.  The 
  2.29  figures "2004" and "2005," where used in this act, mean that the 
  2.30  appropriation or appropriations listed under them are available 
  2.31  for the year ending June 30, 2004, or June 30, 2005, 
  2.32  respectively.  The term "first year" means the fiscal year 
  2.33  ending June 30, 2004, and the term "second year" means the 
  2.34  fiscal year ending June 30, 2005. 
  2.35                          SUMMARY BY FUND
  2.36                            2004          2005           TOTAL
  2.37  General            $  157,859,000 $  156,538,000 $  314,397,000
  2.38  Petroleum Tank 
  2.39  Cleanup                 1,084,000      1,084,000      2,168,000
  2.40  Environmental 
  2.41  Fund                      700,000        700,000      1,400,000
  2.42  Workers'  
  2.43  Compensation           19,843,000     18,933,000     38,776,000
  2.44  Special Revenue 
  2.45  Fund                    7,720,000      7,720,000     15,440,000
  2.46  TOTAL              $  187,206,000 $  184,975,000 $  372,181,000
  2.47                                             APPROPRIATIONS 
  3.1                                          Available for the Year 
  3.2                                              Ending June 30 
  3.3                                             2004         2005 
  3.4   Sec. 2.  TRADE AND ECONOMIC  
  3.5   DEVELOPMENT 
  3.6   Subdivision 1.  Total 
  3.7   Appropriation                     $   63,115,000 $   62,715,000
  3.8                 Summary by Fund
  3.9   General              54,695,000    54,295,000
  3.10  Environmental Fund      700,000       700,000
  3.11  Special Revenue 
  3.12  Fund                  7,720,000     7,720,000
  3.13  The amounts that may be spent from this 
  3.14  appropriation for each program are 
  3.15  specified in the following subdivisions.
  3.16  Subd. 2.  Business and Community 
  3.17  Development                            7,649,000      7,644,000 
  3.18                Summary by Fund
  3.19  General               6,949,000     6,944,000
  3.20  Environmental Fund      700,000       700,000
  3.21  $3,867,000 the first year and 
  3.22  $3,867,000 the second year are for 
  3.23  Minnesota investment fund grants. 
  3.24  Subd. 3.  Minnesota Trade   
  3.25  Office                                 2,187,000      2,187,000 
  3.26  Subd. 4.  Workforce Development        8,035,000      8,035,000 
  3.27  $8,035,000 the first year and 
  3.28  $8,035,000 the second year are for the 
  3.29  job skills partnership program.  If the 
  3.30  appropriation for either year is 
  3.31  insufficient, the appropriation for the 
  3.32  other year is available.  This 
  3.33  appropriation does not cancel. 
  3.34  Subd. 5.  Office of Tourism            8,391,000      8,384,000 
  3.35  To develop maximum private sector 
  3.36  involvement in tourism, $3,500,000 the 
  3.37  first year and $3,500,000 the second 
  3.38  year of the amounts appropriated for 
  3.39  marketing activities are contingent on 
  3.40  receipt of an equal contribution from 
  3.41  nonstate sources that have been 
  3.42  certified by the commissioner.  Up to 
  3.43  one-half of the match may be given in 
  3.44  in-kind contributions. 
  3.45  In order to maximize marketing grant 
  3.46  benefits, the commissioner must give 
  3.47  priority for joint venture marketing 
  3.48  grants to organizations with year-round 
  3.49  sustained tourism activities.  For 
  3.50  programs and projects submitted, the 
  3.51  commissioner must give priority to 
  3.52  those that encompass two or more areas 
  3.53  or that attract nonresident travelers 
  4.1   to the state. 
  4.2   If an appropriation for either year for 
  4.3   grants is not sufficient, the 
  4.4   appropriation for the other year is 
  4.5   available for it. 
  4.6   The commissioner may use grant dollars 
  4.7   or the value of in-kind services to 
  4.8   provide the state contribution for the 
  4.9   partnership program. 
  4.10  Any unexpended money from general fund 
  4.11  appropriations made under this 
  4.12  subdivision does not cancel but must be 
  4.13  placed in a special advertising account 
  4.14  for use by the office of tourism to 
  4.15  purchase additional media. 
  4.16  Subd. 6.  Administration               5,229,000      4,841,000 
  4.17  Subd. 7.  Workforce Services           7,472,000      7,472,000 
  4.18                Summary by Fund
  4.19  General               6,697,000     6,697,000
  4.20  Special Revenue         775,000       775,000
  4.21  Subd. 8.  Rehabilitation Services     20,333,000     20,333,000 
  4.22                Summary by Fund
  4.23  General              13,388,000    13,388,000
  4.24  Special Revenue       6,945,000     6,945,000
  4.25  Subd. 9.  State Services for
  4.26  the Blind                              3,819,000      3,819,000 
  4.27  Sec. 3.  HOUSING FINANCE AGENCY   
  4.28  Subdivision 1.  Total  
  4.29  Appropriation                         34,735,000     34,735,000 
  4.30  The amounts that may be spent from this 
  4.31  appropriation for certain programs are 
  4.32  specified in the following 
  4.33  subdivisions.  This appropriation is 
  4.34  for transfer to the housing development 
  4.35  fund for the programs specified.  
  4.36  Except as otherwise indicated, this 
  4.37  transfer is part of the agency's 
  4.38  permanent budget base. 
  4.39  Subd. 2.  Affordable Rental Investment 
  4.40  Fund 
  4.41  $9,273,000 the first year and 
  4.42  $9,273,000 the second year are for the 
  4.43  affordable rental investment fund 
  4.44  program under Minnesota Statutes, 
  4.45  section 462A.21, subdivision 8b.  These 
  4.46  amounts are to finance the acquisition, 
  4.47  rehabilitation, and debt restructuring 
  4.48  of federally assisted rental property 
  4.49  and for making equity take-out loans 
  4.50  under Minnesota Statutes, section 
  4.51  462A.05, subdivision 39.  The owner of 
  4.52  the federally assisted rental property 
  4.53  must agree to participate in the 
  5.1   applicable federally assisted housing 
  5.2   program and to extend any existing 
  5.3   low-income affordability restrictions 
  5.4   on the housing for the maximum term 
  5.5   permitted.  The owner must also enter 
  5.6   into an agreement that gives local 
  5.7   units of government, housing and 
  5.8   redevelopment authorities, and 
  5.9   nonprofit housing organizations the 
  5.10  right of first refusal if the rental 
  5.11  property is offered for sale.  Priority 
  5.12  must be given among comparable 
  5.13  properties to properties with the 
  5.14  longest remaining term under an 
  5.15  agreement for federal rental 
  5.16  assistance.  Priority must also be 
  5.17  given among comparable rental housing 
  5.18  developments to developments that are 
  5.19  or will be owned by local government 
  5.20  units, a housing and redevelopment 
  5.21  authority, or a nonprofit housing 
  5.22  organization. 
  5.23  Sec. 4.  COMMERCE 
  5.24  Subdivision 1.  Total 
  5.25  Appropriation                         26,076,000     25,349,000
  5.26                Summary by Fund
  5.27  General              24,157,000    23,430,000
  5.28  Petroleum    
  5.29  Cleanup               1,084,000     1,084,000
  5.30  Workers'     
  5.31  Compensation            835,000       835,000
  5.32  The amounts that may be spent from this 
  5.33  appropriation for each program are 
  5.34  specified in the following subdivisions.
  5.35  Subd. 2.  Financial        
  5.36  Examinations                           5,997,000      5,994,000 
  5.37  Subd. 3.  Petroleum Tank Release 
  5.38  Cleanup Board                          1,084,000      1,084,000 
  5.39  This appropriation is from the 
  5.40  petroleum tank release cleanup fund. 
  5.41  Subd. 4.  Administrative Services      5,518,000      5,518,000 
  5.42  Subd. 5.  Market Assurance             6,622,000      5,897,000 
  5.43                Summary by Fund
  5.44  General               5,787,000     5,062,000
  5.45  Workers' Compensation   835,000       835,000
  5.46  Subd. 6.  Energy and 
  5.47  Telecommunications                     4,349,000      4,349,000 
  5.48  Subd. 7.  Weights and 
  5.49  Measurement                            2,506,000      2,507,000 
  5.50  Sec. 5.  BOARD OF ACCOUNTANCY            577,000        577,000 
  5.51  Sec. 6.  BOARD OF ARCHITECTURE, 
  5.52  ENGINEERING, LAND SURVEYING, 
  6.1   LANDSCAPE ARCHITECTURE, 
  6.2   GEOSCIENCE, AND INTERIOR 
  6.3   DESIGN                                   785,000        785,000 
  6.4   Sec. 7.  BOARD OF BARBER    
  6.5   EXAMINERS                                127,000        127,000 
  6.6   Sec. 8.  LABOR AND INDUSTRY                                     
  6.7   Subdivision 1.  Total           
  6.8   Appropriation                         19,950,000     18,974,000
  6.9                 Summary by Fund
  6.10  General               2,560,000     2,494,000
  6.11  Workers'     
  6.12  Compensation         17,390,000    16,480,000
  6.13  The amounts that may be spent from this 
  6.14  appropriation for each program are 
  6.15  specified in the following subdivisions.
  6.16  Subd. 2.  Workers'          
  6.17  Compensation                          10,221,000     10,221,000 
  6.18  This appropriation is from the workers' 
  6.19  compensation fund. 
  6.20  Subd. 3.  Workplace Services           4,137,000      3,466,000 
  6.21                Summary by Fund
  6.22  General               2,560,000     2,494,000
  6.23  Workers'     
  6.24  Compensation          1,577,000       972,000
  6.25  Subd. 4.  General Support              5,592,000      5,287,000 
  6.26  This appropriation is from the workers' 
  6.27  compensation fund. 
  6.28  Sec. 9.  BUREAU OF MEDIATION
  6.29  SERVICES                                                        
  6.30  Subdivision 1.  Total           
  6.31  Appropriation                          1,825,000      1,825,000
  6.32  The amounts that may be spent from this 
  6.33  appropriation for each program are 
  6.34  specified in the following subdivisions.
  6.35  Subd. 2.  Mediation Services           1,673,000      1,673,000 
  6.36  Subd. 3.  Labor Management  
  6.37  Cooperation Grants                       152,000        152,000 
  6.38  $130,000 each year is for grants to 
  6.39  area labor-management committees.  
  6.40  Grants may be awarded for a 12-month 
  6.41  period beginning July 1 of each year.  
  6.42  Any unencumbered balance remaining at 
  6.43  the end of the first year does not 
  6.44  cancel but is available for the second 
  6.45  year. 
  6.46  Sec. 10.  WORKERS' COMPENSATION 
  6.47  COURT OF APPEALS                       1,618,000      1,618,000 
  6.48  This appropriation is from the workers' 
  7.1   compensation fund. 
  7.2   Sec. 11.  PUBLIC UTILITIES  
  7.3   COMMISSION                             4,163,000      4,163,000 
  7.4   Sec. 12.  MINNESOTA HISTORICAL 
  7.5   SOCIETY 
  7.6   Subdivision 1.  Total 
  7.7   Appropriation                         22,860,000     22,732,000
  7.8   The amounts that may be spent from this 
  7.9   appropriation for each program are 
  7.10  specified in the following subdivisions.
  7.11  Subd. 2.  Education and     
  7.12  Outreach                              12,585,000     12,585,000 
  7.13  Subd. 3.  Preservation and  
  7.14  Access                                 9,927,000      9,927,000 
  7.15  Subd. 4.  Fiscal Agent                   348,000        220,000 
  7.16  (a) Minnesota International Center 
  7.17          43,000         43,000 
  7.18  (b) Minnesota Air National   
  7.19  Guard Museum 
  7.20          16,000        -0-     
  7.21  (c) Institute for Learning and 
  7.22  Teaching - Project 120 
  7.23          94,000         93,000 
  7.24  (d) Minnesota Military Museum 
  7.25          67,000        -0-     
  7.26  (e) Farmamerica              
  7.27         128,000         85,000 
  7.28  Notwithstanding any other law, this 
  7.29  appropriation may be used for 
  7.30  operations. 
  7.31  (f) Balances Forward         
  7.32  Any unencumbered balance remaining in 
  7.33  this subdivision the first year does 
  7.34  not cancel but is available for the 
  7.35  second year of the biennium. 
  7.36  Subd. 5.  Fund Transfer  
  7.37  The society may reallocate funds 
  7.38  appropriated in and between 
  7.39  subdivisions 2 and 3 for any program 
  7.40  purposes. 
  7.41  Sec. 13.  COUNCIL ON BLACK  
  7.42  MINNESOTANS                              282,000        282,000 
  7.43  Sec. 14.  COUNCIL ON        
  7.44  CHICANO-LATINO AFFAIRS                   275,000        275,000 
  7.45  Sec. 15.  COUNCIL ON 
  7.46  ASIAN-PACIFIC MINNESOTANS                243,000        243,000 
  8.1   Sec. 16.  INDIAN AFFAIRS    
  8.2   COUNCIL                                  482,000        482,000 
  8.3   Sec. 17.  BOARD OF THE      
  8.4   ARTS                                   
  8.5   Subdivision 1.  Total 
  8.6   Appropriation                     $   10,093,000 $   10,093,000 
  8.7   Subd. 2.  Operations and Services        621,000        621,000 
  8.8   Subd. 3.  Grants Programs              6,684,000      6,684,000 
  8.9   Subd. 4.  Regional Arts     
  8.10  Councils                               2,788,000      2,788,000 
  8.11                             ARTICLE 2
  8.12                       DEPARTMENT OF COMMERCE 
  8.13                         POLICY PROVISIONS 
  8.14     Section 1.  Minnesota Statutes 2002, section 60A.14, 
  8.15  subdivision 1, is amended to read: 
  8.16     Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
  8.17  addition to the fees and charges provided for examinations, the 
  8.18  following fees must be paid to the commissioner for deposit in 
  8.19  the general fund: 
  8.20     (a) by township mutual fire insurance companies; 
  8.21     (1) for filing certificate of incorporation $25 and 
  8.22  amendments thereto, $10; 
  8.23     (2) for filing annual statements, $15; 
  8.24     (3) for each annual certificate of authority, $15; 
  8.25     (4) for filing bylaws $25 and amendments thereto, $10; 
  8.26     (b) by other domestic and foreign companies including 
  8.27  fraternals and reciprocal exchanges; 
  8.28     (1) for filing certified copy of certificate of articles of 
  8.29  incorporation, $100; 
  8.30     (2) for filing annual statement, $225; 
  8.31     (3) for filing certified copy of amendment to certificate 
  8.32  or articles of incorporation, $100; 
  8.33     (4) for filing bylaws, $75 or amendments thereto, $75; 
  8.34     (5) for each company's certificate of authority, $575, 
  8.35  annually; 
  8.36     (c) the following general fees apply: 
  8.37     (1) for each certificate, including certified copy of 
  9.1   certificate of authority, renewal, valuation of life policies, 
  9.2   corporate condition or qualification, $25; 
  9.3      (2) for each copy of paper on file in the commissioner's 
  9.4   office 50 cents per page, and $2.50 for certifying the same; 
  9.5      (3) for license to procure insurance in unadmitted foreign 
  9.6   companies, $575; 
  9.7      (4) for valuing the policies of life insurance companies, 
  9.8   one cent per $1,000 of insurance so valued, provided that the 
  9.9   fee shall not exceed $13,000 per year for any company.  The 
  9.10  commissioner may, in lieu of a valuation of the policies of any 
  9.11  foreign life insurance company admitted, or applying for 
  9.12  admission, to do business in this state, accept a certificate of 
  9.13  valuation from the company's own actuary or from the 
  9.14  commissioner of insurance of the state or territory in which the 
  9.15  company is domiciled; 
  9.16     (5) for receiving and filing certificates of policies by 
  9.17  the company's actuary, or by the commissioner of insurance of 
  9.18  any other state or territory, $50; 
  9.19     (6) for each appointment of an agent filed with the 
  9.20  commissioner, $10; 
  9.21     (7) for filing forms and, rates, and compliance 
  9.22  certifications under section 60A.315, $75 per filing, which may 
  9.23  be paid on a quarterly basis in response to an invoice.  Billing 
  9.24  and payment may be made electronically; 
  9.25     (8) for annual renewal of surplus lines insurer license, 
  9.26  $300; 
  9.27     (9) $250 filing fee for a large risk alternative rating 
  9.28  option plan that meets the $250,000 threshold requirement. 
  9.29     The commissioner shall adopt rules to define filings that 
  9.30  are subject to a fee. 
  9.31     Sec. 2.  [60A.315] [EXPEDITED FORM AND RATE FILING.] 
  9.32     Subdivision 1.  [AUTHORITY.] An insurer otherwise required 
  9.33  to file rates and forms under sections 61A.02, 61A.09, 61A.17, 
  9.34  62A.02, 62A.11, 70A.06 or other law shall use the expedited 
  9.35  filing procedure under this section. 
  9.36     Subd. 2.  [COMPLIANCE CERTIFICATIONS.] An insurer shall 
 10.1   file with the department of commerce on a prescribed form, a 
 10.2   description of the policy, amendment, or endorsement and a 
 10.3   written certification signed by an officer of the insurer that 
 10.4   the forms, policies, amendments, endorsements, and rates comply 
 10.5   with all applicable Minnesota statutes and rules.  If the filing 
 10.6   will impact rates, the description must identify the rate or 
 10.7   rates and rating rules for the product.  Forms and rates filed 
 10.8   under this procedure are effective upon submission to and 
 10.9   receipt by the department. 
 10.10     Subd. 3.  [FEES.] In order to be effective, the filing must 
 10.11  be accompanied by payment of the filing fee applicable to the 
 10.12  policy, amendment, endorsement, or rate unless the fee is 
 10.13  remitted in accordance with an alternative procedure allowed 
 10.14  pursuant to Minnesota Statutes, section 60A.14. 
 10.15     Subd. 4.  [RECORD KEEPING.] The insurer shall retain the 
 10.16  policy, amendment, or endorsement for at least one year after 
 10.17  the insurer had ceased using the form and shall provide to the 
 10.18  department of commerce upon request a copy of any form in use 
 10.19  pursuant to these filing procedures. 
 10.20     Subd. 5.  [ALLOWABLE RATE CHANGES.] Any subsequent rate 
 10.21  increases or decreases of up to seven percent above or below the 
 10.22  insurer's current filed rate may take effect upon the 
 10.23  department's receipt of the insurer's submission of the rate 
 10.24  change, and the applicable fee.  Rate increases implemented 
 10.25  pursuant to this subdivision may not exceed seven percent in a 
 10.26  12-month period.  Changes in rating rules or classifications are 
 10.27  effective upon submission to and receipt by the department 
 10.28  provided that the insurer, through an officer of the insurer, 
 10.29  certifies in writing that the changes comply with all applicable 
 10.30  Minnesota statutes and rules, and upon payment of the applicable 
 10.31  filing fee. 
 10.32     Subd. 6.  [INELIGIBLE RATE CHANGES.] Any rate increases or 
 10.33  decreases that exceed the seven percent limit established by 
 10.34  subdivision 5 may be used upon submission to and receipt by the 
 10.35  department and payment of the applicable filing fee.  However, 
 10.36  when filing rates that exceed the seven percent limit, insurers 
 11.1   shall include with the filing all necessary supporting material 
 11.2   for the rate or rates. 
 11.3      Subd. 7.  [REVIEW.] The commissioner of commerce shall have 
 11.4   the right to review any rate used or filed for use in Minnesota 
 11.5   to determine whether it is excessive, inadequate, or unfairly 
 11.6   discriminatory. 
 11.7      Subd. 8.  [APPLICATION.] This section does not apply to 
 11.8   workers compensation insurance, long-term care insurance 
 11.9   regulated under sections 62A.46 to 62A.56, and chapter 62S, 
 11.10  medicare-related coverage, as defined in section 62A.31, 
 11.11  subdivision 3, paragraph (q), or rate service organizations. 
 11.12     Sec. 3.  Minnesota Statutes 2002, section 61A.02, 
 11.13  subdivision 2, is amended to read: 
 11.14     Subd. 2.  [APPROVAL REQUIRED.] Except as otherwise provided 
 11.15  in section 60A.315, no policy or certificate of life insurance 
 11.16  or annuity contract, issued to an individual, group, or multiple 
 11.17  employer trust, nor any rider of any kind or description which 
 11.18  is made a part thereof shall be issued or delivered in this 
 11.19  state, or be issued by a life insurance company organized under 
 11.20  the laws of this state, until the form of the same has been 
 11.21  approved by the commissioner.  In making a determination under 
 11.22  this section, the commissioner may require the insurer to 
 11.23  provide rates and advertising materials related to policies or 
 11.24  contracts, certificates, or similar evidence of coverage issued 
 11.25  or delivered in this state.  
 11.26     Subdivisions 1 to 5 apply to a policy, certificate of 
 11.27  insurance, or similar evidence of coverage issued to a Minnesota 
 11.28  resident or issued to provide coverage to a Minnesota resident.  
 11.29  Subdivisions 1 to 5 do not apply to a certificate of insurance 
 11.30  or similar evidence of coverage that meets the conditions of 
 11.31  section 61A.093, subdivision 2. 
 11.32     Sec. 4.  Minnesota Statutes 2002, section 61A.09, 
 11.33  subdivision 1, is amended to read: 
 11.34     Subdivision 1.  [FILING REQUIREMENT.] Except as otherwise 
 11.35  provided in section 60A.315, no group life insurance policy or 
 11.36  group annuity shall be issued for delivery in this state until 
 12.1   the form thereof and the form of any certificates issued 
 12.2   thereunder have been filed in accordance with and subject to the 
 12.3   provisions of section 61A.02.  Each person insured under such a 
 12.4   group life insurance policy (excepting policies which insure the 
 12.5   lives of debtors of a creditor or vendor to secure payment of 
 12.6   indebtedness) shall be furnished a certificate of insurance 
 12.7   issued by the insurer and containing the following: 
 12.8      (a) name and location of the insurance company; 
 12.9      (b) a statement as to the insurance protection to which the 
 12.10  certificate holder is entitled, including any changes in such 
 12.11  protection depending on the age of the person whose life is 
 12.12  insured; 
 12.13     (c) any and all provisions regarding the termination or 
 12.14  reduction of the certificate holder's insurance protection; 
 12.15     (d) a statement that the master group policy may be 
 12.16  examined at a reasonably accessible place; 
 12.17     (e) the maximum rate of contribution to be paid by the 
 12.18  certificate holder; 
 12.19     (f) beneficiary and method required to change such 
 12.20  beneficiary; 
 12.21     (g) a statement that alternative methods for the payment of 
 12.22  group life policy proceeds of $15,000 or more must be offered to 
 12.23  beneficiaries in lieu of a lump sum distribution, at their 
 12.24  request.  Alternative payment methods which must be offered at 
 12.25  the request of the beneficiaries must include, but are not 
 12.26  limited to, a life income option, an income option for fixed 
 12.27  amounts or fixed time periods, and the option to select an 
 12.28  interest-bearing account with the company with the right to 
 12.29  select another option at a later date; 
 12.30     (h) in the case of a group term insurance policy if the 
 12.31  policy provides that insurance of the certificate holder will 
 12.32  terminate, in case of a policy issued to an employer, by reason 
 12.33  of termination of the certificate holder's employment, or in 
 12.34  case of a policy issued to an organization of which the 
 12.35  certificate holder is a member, by reason of termination of 
 12.36  membership, a provision to the effect that in case of 
 13.1   termination of employment or membership, or in case of 
 13.2   termination of the group policy, the certificate holder shall be 
 13.3   entitled to have issued by the insurer, without evidence of 
 13.4   insurability, upon application made to the insurer within 31 
 13.5   days after the termination, and upon payment of the premium 
 13.6   applicable to the class of risk to which that person belongs and 
 13.7   to the form and amount of the policy at that person's then 
 13.8   attained age, a policy of life insurance only, in any one of the 
 13.9   forms customarily issued by the insurer except term insurance, 
 13.10  in an amount equal to the amount of the life insurance 
 13.11  protection under such group insurance policy at the time of such 
 13.12  termination; and shall contain a further provision to the effect 
 13.13  that upon the death of the certificate holder during such 31-day 
 13.14  period and before any such individual policy has become 
 13.15  effective, the amount of insurance for which the certificate 
 13.16  holder was entitled to make application shall be payable as a 
 13.17  death benefit by the insurer.  
 13.18     This section applies to a policy, certificate of insurance, 
 13.19  or similar evidence of coverage issued to a Minnesota resident 
 13.20  or issued to provide coverage to a Minnesota resident.  This 
 13.21  section does not apply to a certificate of insurance or similar 
 13.22  evidence of coverage that meets the conditions of section 
 13.23  61A.093, subdivision 2. 
 13.24     Sec. 5.  Minnesota Statutes 2002, section 61A.17, is 
 13.25  amended to read: 
 13.26     61A.17 [FILING OF CONTRACTS.] 
 13.27     Except as otherwise provided in section 60A.315, no 
 13.28  contract on a variable basis shall be issued in this state until 
 13.29  a copy of the form thereof (and, in the case of a group 
 13.30  contract, the form of any certificate evidencing variable 
 13.31  benefits issued pursuant thereto) and any form of application 
 13.32  for such contract shall have been filed with the commissioner.  
 13.33  No life insurance contract on a variable basis shall be filed 
 13.34  for issuance in Minnesota or issued in Minnesota before the 
 13.35  commissioner has promulgated rules under section 61A.20 
 13.36  regarding life insurance contracts on a variable basis.  
 14.1      Sec. 6.  Minnesota Statutes 2002, section 62A.02, 
 14.2   subdivision 1, is amended to read: 
 14.3      Subdivision 1.  [FILING.] For purposes of this section, 
 14.4   "health plan" means a health plan as defined in section 62A.011 
 14.5   or a policy of accident and sickness insurance as defined in 
 14.6   section 62A.01.  Except as otherwise provided in section 
 14.7   60A.315, no health plan shall be issued or delivered to any 
 14.8   person in this state, nor shall any application, rider, or 
 14.9   endorsement be used in connection with the health plan, until a 
 14.10  copy of its form and of the classification of risks and the 
 14.11  premium rates pertaining to the form have been filed with the 
 14.12  commissioner.  The filing for nongroup health plan forms shall 
 14.13  include a statement of actuarial reasons and data to support the 
 14.14  rate.  For health benefit plans as defined in section 62L.02, 
 14.15  and for health plans to be issued to individuals, the health 
 14.16  carrier shall file with the commissioner the information 
 14.17  required in section 62L.08, subdivision 8.  For group health 
 14.18  plans for which approval is sought for sales only outside of the 
 14.19  small employer market as defined in section 62L.02, this section 
 14.20  applies only to policies or contracts of accident and sickness 
 14.21  insurance.  All forms intended for issuance in the individual or 
 14.22  small employer market must be accompanied by a statement as to 
 14.23  the expected loss ratio for the form.  Premium rates and forms 
 14.24  relating to specific insureds or proposed insureds, whether 
 14.25  individuals or groups, need not be filed, unless requested by 
 14.26  the commissioner. 
 14.27     Sec. 7.  Minnesota Statutes 2002, section 62A.02, 
 14.28  subdivision 2, is amended to read: 
 14.29     Subd. 2.  [APPROVAL.] (a) Except as otherwise provided in 
 14.30  section 60A.315, the health plan form shall not be issued, nor 
 14.31  shall any application, rider, endorsement, or rate be used in 
 14.32  connection with it, until the expiration of 60 days after it has 
 14.33  been filed unless the commissioner approves it before that time. 
 14.34     (b) Notwithstanding paragraph (a), a rate filed with 
 14.35  respect to a policy of accident and sickness insurance as 
 14.36  defined in section 62A.01 by an insurer licensed under chapter 
 15.1   60A, may be used on or after the date of filing with the 
 15.2   commissioner.  Rates that are not approved or disapproved within 
 15.3   the 60-day time period are deemed approved.  This paragraph does 
 15.4   not apply to Medicare-related coverage as defined in section 
 15.5   62A.31, subdivision 3, paragraph (q). 
 15.6      Sec. 8.  Minnesota Statutes 2002, section 62A.11, 
 15.7   subdivision 3, is amended to read: 
 15.8      Subd. 3.  [POLICY FORMS.] Except as otherwise provided in 
 15.9   section 60A.315, no policy of blanket accident and sickness 
 15.10  insurance may be issued or delivered in this state unless a copy 
 15.11  of the form thereof has been approved by the commissioner and it 
 15.12  contains in substance such of the provisions required for 
 15.13  individual policies as may be applicable to blanket accident and 
 15.14  sickness insurance and the following provisions: 
 15.15     (1) A provision that the policy and the application of the 
 15.16  policyholder shall constitute the entire contract between the 
 15.17  parties, and that, in the absence of fraud, all statements made 
 15.18  by the policyholder shall be deemed representations and not 
 15.19  warranties, and that no statement made for the purpose of 
 15.20  affecting insurance shall avoid such insurance or reduce 
 15.21  benefits unless contained in a written instrument signed by the 
 15.22  policyholder, a copy of which has been furnished to such 
 15.23  policyholder.  
 15.24     (2) A provision that to the group or class originally 
 15.25  insured shall be added from time to time all new persons 
 15.26  eligible for coverage.  
 15.27     Sec. 9.  Minnesota Statutes 2002, section 70A.06, 
 15.28  subdivision 1, is amended to read: 
 15.29     Subdivision 1.  Every licensed insurer and every rate 
 15.30  service organization licensed under section 70A.14, and every 
 15.31  licensed insurer except as otherwise provided in section 
 15.32  60A.315, shall file with the commissioner all rates and all 
 15.33  changes and amendments of rates made by it for use in this state 
 15.34  not later than their effective date.  No rates contained in a 
 15.35  filing shall become effective unless they have been filed with 
 15.36  the commissioner.  In any filing, the commissioner may require 
 16.1   the insurer or rate service organization to file supporting data 
 16.2   and explanatory data which shall include: 
 16.3      (1) the experience and judgment of the filer, and, to the 
 16.4   extent it wishes or the commissioner requires, of other insurers 
 16.5   or rate service organizations; 
 16.6      (2) its interpretation of any statistical data relied upon; 
 16.7      (3) descriptions of the actuarial and statistical methods 
 16.8   employed; and 
 16.9      (4) any other matters deemed relevant by the commissioner 
 16.10  or the filer.  
 16.11     Notwithstanding the foregoing, if the supporting data is 
 16.12  not filed within 30 days after so requested by the commissioner, 
 16.13  the rate is no longer effective and is presumed to be an 
 16.14  excessive rate. 
 16.15     Sec. 10.  Minnesota Statutes 2002, section 79.56, 
 16.16  subdivision 1, is amended to read: 
 16.17     Subdivision 1.  [PREFILING OF RATES.] (a) Each insurer 
 16.18  shall file with the commissioner a complete copy of its rates 
 16.19  and rating plan, and all changes and amendments thereto, and 
 16.20  such supporting data and information that the commissioner may 
 16.21  by rule require, at least 60 days prior to its effective date.  
 16.22  The commissioner shall advise an insurer within 30 days of the 
 16.23  filing if its submission is not accompanied with such supporting 
 16.24  data and information that the commissioner by rule may require.  
 16.25  The commissioner may extend the filing review period and 
 16.26  effective date for an additional 30 days if an insurer, after 
 16.27  having been advised of what supporting data and information is 
 16.28  necessary to complete its filing, does not provide such 
 16.29  information within 15 days of having been so notified.  If any 
 16.30  rate or rating plan filing or amendment thereto is not 
 16.31  disapproved by the commissioner within the filing review period, 
 16.32  the insurer may implement it.  For the period August 1, 1995, to 
 16.33  December 31, 1995, the filing shall be made at least 90 days 
 16.34  prior to the effective date and the department shall advise an 
 16.35  insurer within 60 days of such filing if the filing is 
 16.36  insufficient under this section.  
 17.1      (b) Notwithstanding paragraph (a), a rating plan or rates 
 17.2   are not subject to disapproval, where the insurer certifies that 
 17.3   it will use the rating plan or rates only to write a specific 
 17.4   employer that generates $250,000 in annual written workers' 
 17.5   compensation premiums before the application of any large 
 17.6   deductible rating plan.  The $250,000 threshold includes 
 17.7   premiums generated in any state.  A filing made under this 
 17.8   paragraph shall be designated by the insurer as a large risk 
 17.9   alternative rating option (LRARO) filing.  The designation and 
 17.10  certification shall be submitted in substantially the following 
 17.11  form: 
 17.12           LARGE RISK ALTERNATIVE RATING OPTION FILING 
 17.13                 PURSUANT TO MINNESOTA STATUTES, 
 17.14                SECTION 79.56, SUBDIVISION 1, (b) 
 17.15  Name and address of insurer:................................. 
 17.16  Name and address of insured employer:........................ 
 17.17  Effective date of filing:.................................... 
 17.18  I certify that the employer named above generates $250,000 or 
 17.19  more in annual written workers' compensation premiums before the 
 17.20  application of any large deductible rating plan.  This 
 17.21  certification authorizes the use of this rate or rating plan 
 17.22  only for the named employer. 
 17.23  Name of responsible officer:................................. 
 17.24  Title:....................................................... 
 17.25  Signature:................................................... 
 17.26     Sec. 11.  Minnesota Statutes 2002, section 79.56, 
 17.27  subdivision 3, is amended to read: 
 17.28     Subd. 3.  [PENALTIES.] (a) Any insurer using a rate or a 
 17.29  rating plan which has not been filed shall be subject to a fine 
 17.30  of up to $100 for each day the failure to file continues.  The 
 17.31  commissioner may, after a hearing on the record, find that the 
 17.32  failure is willful.  A willful failure to meet filing 
 17.33  requirements shall be punishable by a fine of up to $500 for 
 17.34  each day during which a willful failure continues.  These 
 17.35  penalties shall be in addition to any other penalties provided 
 17.36  by law.  
 18.1      (b) Notwithstanding this subdivision, an employer that 
 18.2   generates $250,000 in annual written workers' compensation 
 18.3   premium under the rates and rating plan of an insurer before the 
 18.4   application of any large deductible rating plans, may be written 
 18.5   by that insurer using rates or rating plans that are not subject 
 18.6   to disapproval but which have been filed.  For the purposes of 
 18.7   this paragraph, written workers' compensation premiums generated 
 18.8   from states other than Minnesota are included in calculating the 
 18.9   $250,000 threshold for large risk alternative rating option 
 18.10  plans. 
 18.11     Sec. 12.  Minnesota Statutes 2002, section 239.011, is 
 18.12  amended by adding a subdivision to read: 
 18.13     Subd. 3.  [CONTRACTING REQUIREMENTS.] (a) For any contract 
 18.14  issued by the department of commerce for the inspection and 
 18.15  testing of liquid petroleum measuring equipment by a person or 
 18.16  company, the contractor must: 
 18.17     (1) not be engaged in the business of maintaining, 
 18.18  repairing or adjusting liquid petroleum measuring equipment in 
 18.19  Minnesota; 
 18.20     (2) not be engaged in the business of distributing, 
 18.21  selling, or offering to sell petroleum products in Minnesota; 
 18.22     (3) demonstrate to the director that the contractor is 
 18.23  competent to inspect and test equipment; 
 18.24     (4) own or lease, properly maintain, and use for all 
 18.25  inspections and tests, the type of test equipment specified by 
 18.26  the director; 
 18.27     (5) submit test equipment for calibration by the division 
 18.28  on a schedule specified by the director, and when ordered by the 
 18.29  director; 
 18.30     (6) conduct all inspections and tests according to the 
 18.31  requirements of Minnesota Statutes, department rules, and 
 18.32  written procedures issued by the director; 
 18.33     (7) place a notice in a manner and form specified by the 
 18.34  director on all equipment that has been found to comply with the 
 18.35  requirements of Minnesota Statutes and department rules; 
 18.36     (8) install a security seal on the adjusting mechanism of 
 19.1   all equipment that has been found to comply with the 
 19.2   requirements of Minnesota Statutes and department rules; 
 19.3      (9) place a notice in a manner and form specified by the 
 19.4   director on all equipment that has failed to comply with the 
 19.5   requirements of Minnesota Statutes and department rules; 
 19.6      (10) report the results of all inspections and tests to the 
 19.7   director in a manner and form prescribed by the director; and 
 19.8      (11) carry out all responsibilities included in the 
 19.9   contract. 
 19.10     (b) For any contract issued by the department of commerce 
 19.11  for the inspection and testing of liquefied petroleum gas 
 19.12  measuring equipment (LPG meters) by a person or company, the 
 19.13  contractor must: 
 19.14     (1) inspect and test LPG meters according to the 
 19.15  requirements of Minnesota Statutes, department rules, and 
 19.16  written procedures issued by the director; 
 19.17     (2) demonstrate to the director that the contractor is 
 19.18  competent to inspect, test, adjust, and repair LPG meters; 
 19.19     (3) own or lease, properly maintain, and use for all 
 19.20  inspections and tests, the type of test equipment specified by 
 19.21  the director; 
 19.22     (4) submit test equipment for calibration by the division 
 19.23  on a schedule specified by the director, and when ordered by the 
 19.24  director; 
 19.25     (5) place a notice in a manner and form specified by the 
 19.26  director on all LPG meters that comply with the requirements of 
 19.27  Minnesota Statutes and department rules; 
 19.28     (6) install a security seal on the accuracy adjusting 
 19.29  mechanism and on the temperature compensation adjusting 
 19.30  mechanism of all LPG meters that have been found to meet the 
 19.31  requirements of Minnesota Statutes and department rules; 
 19.32     (7) place a notice in a manner and form specified by the 
 19.33  director on all LPG meters that have failed to comply with the 
 19.34  requirements of Minnesota Statutes and department rules; and 
 19.35     (8) report the results of all tests and inspections to the 
 19.36  director in a manner and form specified by the director. 
 20.1      Sec. 13.  Minnesota Statutes 2002, section 325D.32, 
 20.2   subdivision 10, is amended to read: 
 20.3      Subd. 10.  [COST TO WHOLESALER.] (a) "Cost to wholesaler" 
 20.4   means the basic cost of the cigarettes, prior to deducting 
 20.5   manufacturer's timely payment and stamping discounts and any 
 20.6   other discounts or rebates, plus the cost of doing business by 
 20.7   the wholesaler, as defined in sections 325D.30 to 325D.42.  
 20.8      (b) In the absence of proof of a lesser or higher cost, the 
 20.9   cost of doing business by the wholesaler is presumed to be four 
 20.10  percent of the basic cost of the cigarettes, plus cartage to the 
 20.11  retail outlet, if furnished or paid for by the wholesaler.  Such 
 20.12  cartage cost is presumed to be one-half of one percent of the 
 20.13  basic cost of the cigarettes in the absence of proof of a lesser 
 20.14  or higher cost.  A manufacturer's timely payment and stamping 
 20.15  discounts and any other discounts or rebates shall not be 
 20.16  deducted in determining the cost of doing business by the 
 20.17  wholesaler, whether it is determined under the percentage 
 20.18  formula set forth in this paragraph or proof of actual cost. 
 20.19     (c) A wholesaler electing to sell cigarettes at a price 
 20.20  other than that presumed by law must submit to the 
 20.21  commissioner maintain documentation substantiating the actual 
 20.22  cost of the cigarettes before selling at actual cost.  For 
 20.23  purposes of this paragraph "actual cost" means basic cost as 
 20.24  defined in subdivision 9 plus the wholesaler's cost of doing 
 20.25  business.  The commissioner shall review the documents submitted 
 20.26  and, if necessary, request additional documentation to verify 
 20.27  the accuracy of the cost computations.  If, within 15 days of 
 20.28  submission of the documentation, the commissioner has not 
 20.29  notified the wholesaler of any deficiencies in the cost 
 20.30  computations, the wholesaler may begin selling at actual cost.  
 20.31  The cost computations are effective for a period of not more 
 20.32  than 12 months beginning 15 days after submission of the 
 20.33  documentation.  Fifteen days before expiration of the 12-month 
 20.34  period, the wholesaler must submit new cost documentation for 
 20.35  review by the commissioner to continue selling at less than the 
 20.36  price presumed by law.  New cost documentation must also be 
 21.1   submitted to the commissioner on the last day of a month in 
 21.2   which the basic cost of cigarettes increases.  
 21.3      Sec. 14.  Minnesota Statutes 2002, section 325D.33, 
 21.4   subdivision 8, is amended to read: 
 21.5      Subd. 8.  [PENALTIES.] (a) A retailer who sells cigarettes 
 21.6   for less than a legal retail price may be assessed a penalty in 
 21.7   the full amount of three times the difference between the actual 
 21.8   selling price and a legal price under sections 325D.30 to 
 21.9   325D.42.  This penalty may be collected by the commissioner 
 21.10  under the authorities given the commissioner of revenue in 
 21.11  chapter 270, and The penalty shall bear interest at the rate 
 21.12  prescribed by section 270.75, subdivision 5. 
 21.13     (b) A wholesaler who sells cigarettes for less than a legal 
 21.14  price may be assessed a penalty in the full amount of three 
 21.15  times the difference between the actual selling price and the 
 21.16  legal price under sections 325D.30 to 325D.42.  This penalty may 
 21.17  be collected by the commissioner under the authorities given the 
 21.18  commissioner of revenue in chapter 270, and The penalty shall 
 21.19  bear interest at the rate prescribed by section 270.75, 
 21.20  subdivision 5.  
 21.21     (c) A retailer who engages in a plan, scheme, or device 
 21.22  with a wholesaler to purchase cigarettes at a price which the 
 21.23  retailer knows to be less than a legal price may be assessed a 
 21.24  penalty in the full amount of three times the difference between 
 21.25  the actual purchase price and the legal price under sections 
 21.26  325D.30 to 325D.42.  A retailer that coerces or requires a 
 21.27  wholesaler to sell cigarettes at a price which the retailer 
 21.28  knows to be less than a legal price may be assessed a penalty in 
 21.29  the full amount of three times the difference between the actual 
 21.30  purchase price and the legal price.  These penalties may be 
 21.31  collected by the commissioner under the authorities given the 
 21.32  commissioner of revenue in chapter 270, and the penalties shall 
 21.33  bear interest at the rate prescribed by section 270.75, 
 21.34  subdivision 5. 
 21.35     For purposes of this subdivision, a retailer is presumed to 
 21.36  know that a purchase price is less than a legal price if any of 
 22.1   the following have been done: 
 22.2      (1) the commissioner has published the legal price in the 
 22.3   Minnesota State Register; 
 22.4      (2) the commissioner has provided written notice to the 
 22.5   retailer of the legal price; 
 22.6      (3) the commissioner has provided written notice to the 
 22.7   retailer that the retailer is purchasing cigarettes for less 
 22.8   than a legal price; 
 22.9      (4) the commissioner has issued a written order to the 
 22.10  retailer to cease and desist from purchases of cigarettes for 
 22.11  less than a legal price; or 
 22.12     (5) there is evidence that the retailer has knowledge of, 
 22.13  or has participated in, efforts to disguise or misrepresent the 
 22.14  actual purchase price as equal to or more than a legal price, 
 22.15  when it is actually less than a legal price. 
 22.16     In any proceeding arising under this subdivision, the 
 22.17  commissioner shall have the burden of providing by a reasonable 
 22.18  preponderance of the evidence that the facts necessary to 
 22.19  establish the presumption set forth in this section exist, or 
 22.20  that the retailer had knowledge that a purchase price was less 
 22.21  than the legal price. 
 22.22     (d) The commissioner may not assess penalties against any 
 22.23  wholesaler, retailer, or combination of wholesaler and retailer, 
 22.24  which are greater than three times the difference between the 
 22.25  actual price and the legal price under sections 325D.30 to 
 22.26  325D.42. 
 22.27     Sec. 15.  Minnesota Statutes 2002, section 354D.02, 
 22.28  subdivision 2, is amended to read: 
 22.29     Subd. 2.  [ELIGIBILITY.] Eligible employees are: 
 22.30     (1) any supervisory or professional employee of the state 
 22.31  arts board; or 
 22.32     (2) any supervisory or professional employee of the 
 22.33  Minnesota humanities commission; or 
 22.34     (3) (2) any employee of the Minnesota historical society. 
 22.35     Sec. 16.  [REPEALER.] 
 22.36     Minnesota Statutes 2002, sections 138.91; 325D.33, 
 23.1   subdivisions 2a and 6; 325D.37, subdivision 3; 325D.371; 
 23.2   325D.405; 325D.415; and 325D.43, are repealed. 
 23.3      Sec. 17.  [EFFECTIVE DATE; APPLICATION.] 
 23.4      Sections 1 to 9 are effective the day following final 
 23.5   enactment and apply to filings made on or after that date. 
 23.6                              ARTICLE 3 
 23.7                   DEPARTMENT OF LABOR AND INDUSTRY  
 23.8                          POLICY PROVISIONS 
 23.9      Section 1.  Minnesota Statutes 2002, section 175.16, 
 23.10  subdivision 1, is amended to read: 
 23.11     Subdivision 1.  [ESTABLISHED.] The department of labor and 
 23.12  industry shall consist of the following divisions:  division of 
 23.13  workers' compensation, division of boiler inspection, division 
 23.14  of occupational safety and health, division of statistics, 
 23.15  division of steamfitting standards, division of voluntary 
 23.16  apprenticeship, division of labor standards and apprenticeship, 
 23.17  and such other divisions as the commissioner of the department 
 23.18  of labor and industry may deem necessary and establish.  Each 
 23.19  division of the department and persons in charge thereof shall 
 23.20  be subject to the supervision of the commissioner of the 
 23.21  department of labor and industry and, in addition to such duties 
 23.22  as are or may be imposed on them by statute, shall perform such 
 23.23  other duties as may be assigned to them by said the commissioner.
 23.24  Notwithstanding any other law to the contrary, the commissioner 
 23.25  is the administrator and supervisor of all of the department's 
 23.26  dispute resolution functions and personnel and may delegate 
 23.27  authority to compensation judges and others to make 
 23.28  determinations under sections 176.106, 176.238, and 176.239 and 
 23.29  to approve settlement of claims under section 176.521. 
 23.30     Sec. 2.  Minnesota Statutes 2002, section 177.26, 
 23.31  subdivision 1, is amended to read: 
 23.32     Subdivision 1.  [CREATION.] The division of labor standards 
 23.33  and apprenticeship in the department of labor and industry is 
 23.34  supervised and controlled by the commissioner of labor and 
 23.35  industry.  
 23.36     Sec. 3.  Minnesota Statutes 2002, section 177.26, 
 24.1   subdivision 2, is amended to read: 
 24.2      Subd. 2.  [POWERS AND DUTIES.] The powers, duties, and 
 24.3   functions given to the department's division of women and 
 24.4   children by this chapter, and other applicable laws relating to 
 24.5   wages, hours, and working conditions, are transferred to the 
 24.6   division of labor standards.  The division of labor standards 
 24.7   and apprenticeship shall administer sections 177.21 to 177.35 
 24.8   and chapter chapters 177, 178, 181, 181A, and 184.  The division 
 24.9   shall perform duties under sections 181.9435 and 181.9436. 
 24.10     Sec. 4.  Minnesota Statutes 2002, section 178.01, is 
 24.11  amended to read: 
 24.12     178.01 [PURPOSES.] 
 24.13     The purposes of this chapter are:  to open to young people 
 24.14  regardless of race, sex, creed, color or national origin, the 
 24.15  opportunity to obtain training that will equip them for 
 24.16  profitable employment and citizenship; to establish as a means 
 24.17  to this end, a program of voluntary apprenticeship under 
 24.18  approved apprentice agreements providing facilities for their 
 24.19  training and guidance in the arts, skills, and crafts of 
 24.20  industry and trade, with concurrent, supplementary instruction 
 24.21  in related subjects; to promote employment opportunities under 
 24.22  conditions providing adequate training and reasonable earnings; 
 24.23  to relate the supply of skilled workers to employment demands; 
 24.24  to establish standards for apprentice training; to establish an 
 24.25  apprenticeship advisory council and apprenticeship committees to 
 24.26  assist in effectuating the purposes of this chapter; to provide 
 24.27  for a division of voluntary labor standards and apprenticeship 
 24.28  within the department of labor and industry; to provide for 
 24.29  reports to the legislature regarding the status of apprentice 
 24.30  training in the state; to establish a procedure for the 
 24.31  determination of apprentice agreement controversies; and to 
 24.32  accomplish related ends.  
 24.33     Sec. 5.  Minnesota Statutes 2002, section 178.03, 
 24.34  subdivision 1, is amended to read: 
 24.35     Subdivision 1.  [ESTABLISHMENT OF DIVISION.] There is 
 24.36  hereby established a division of voluntary labor standards and 
 25.1   apprenticeship in the department of labor and industry.  This 
 25.2   division shall be administered by a director, and be under the 
 25.3   supervision of the commissioner of labor and industry, 
 25.4   hereinafter referred to as the commissioner.  
 25.5      Sec. 6.  Minnesota Statutes 2002, section 178.03, 
 25.6   subdivision 2, is amended to read: 
 25.7      Subd. 2.  [DIRECTOR OF VOLUNTARY LABOR STANDARDS AND 
 25.8   APPRENTICESHIP.] The commissioner shall appoint a director of 
 25.9   the division of voluntary labor standards and apprenticeship, 
 25.10  hereinafter referred to as the director, and may appoint and 
 25.11  employ such clerical, technical, and professional help as is 
 25.12  necessary to accomplish the purposes of this chapter.  The 
 25.13  director and division staff shall be appointed and shall serve 
 25.14  in the classified service pursuant to civil service law and 
 25.15  rules.  
 25.16     Sec. 7.  [178.12] [REGISTRATION FEE.] 
 25.17     The apprenticeship registration account is established in 
 25.18  the special revenue fund of the state treasury.  An annual 
 25.19  registration fee will be charged to each sponsor for each 
 25.20  apprentice registered in the program.  The fee is established at 
 25.21  $50 per apprentice.  Subsequent adjustments to this fee will be 
 25.22  made pursuant to Minnesota Statutes, sections 16A.1283 and 
 25.23  16A.1285, subdivision 2.  The fees collected and any interest 
 25.24  earned are appropriated to the commissioner for purposes of this 
 25.25  chapter. 
 25.26     Sec. 8.  Minnesota Statutes 2002, section 181.9435, 
 25.27  subdivision 1, is amended to read: 
 25.28     Subdivision 1.  [INVESTIGATION.] The division of labor 
 25.29  standards and apprenticeship shall receive complaints of 
 25.30  employees against employers relating to sections 181.940 to 
 25.31  181.9436 and investigate informally whether an employer may be 
 25.32  in violation of sections 181.940 to 181.9436.  The division 
 25.33  shall attempt to resolve employee complaints by informing 
 25.34  employees and employers of the provisions of the law and 
 25.35  directing employers to comply with the law. 
 25.36     Sec. 9.  Minnesota Statutes 2002, section 181.9436, is 
 26.1   amended to read: 
 26.2      181.9436 [POSTING OF LAW.] 
 26.3      The division of labor standards and apprenticeship shall 
 26.4   develop, with the assistance of interested business and 
 26.5   community organizations, an educational poster stating 
 26.6   employees' rights under sections 181.940 to 181.9436.  The 
 26.7   department shall make the poster available, upon request, to 
 26.8   employers for posting on the employer's premises. 
 26.9      Sec. 10.  Minnesota Statutes 2002, section 182.65, 
 26.10  subdivision 2, is amended to read: 
 26.11     Subd. 2.  The legislature finds that the burden on public 
 26.12  employers and public employees of this state resulting from 
 26.13  personal injuries and illnesses arising out of work situations 
 26.14  is substantial; that the prevention of these injuries and 
 26.15  illnesses is an important objective of the government of this 
 26.16  state; that the greatest hope of attaining this objective lies 
 26.17  in programs of research and education, and in the earnest 
 26.18  cooperation of government, public employers and public 
 26.19  employees; and that a program of regulation and enforcement is a 
 26.20  necessary supplement to these more basic programs. 
 26.21     The legislature declares it to be its purpose and policy 
 26.22  through the exercise of its powers to assure so far as possible 
 26.23  every worker public employee in the state of Minnesota safe and 
 26.24  healthful working conditions and to preserve our human resources 
 26.25  by: 
 26.26     (a) Authorizing the occupational safety and health advisory 
 26.27  council to advise, consult with or recommend on any matters 
 26.28  relating to the Minnesota occupational safety and health plan to 
 26.29  the commissioner of labor and industry and the state 
 26.30  commissioner of health and by authorizing the commissioner of 
 26.31  labor and industry to promulgate and enforce mandatory 
 26.32  occupational safety and health standards applicable to public 
 26.33  employers and public employees in the state of Minnesota; 
 26.34     (b) Encouraging public employers and public employees to 
 26.35  increase their efforts to reduce the number of occupational 
 26.36  safety and health hazards at their places of employment, and to 
 27.1   stimulate public employers and public employees to institute new 
 27.2   and to perfect existing programs for providing safe and 
 27.3   healthful working conditions; 
 27.4      (c) Providing that public employers and public employees 
 27.5   have separate but dependent responsibilities and rights with 
 27.6   respect to achieving safe and healthful working conditions; 
 27.7      (d) Providing for research in the field of occupational 
 27.8   safety and health; including the psychological factors involved, 
 27.9   and by developing innovative methods, techniques, and approaches 
 27.10  for dealing with occupational safety and health problems; 
 27.11     (e) Exploring ways to discover latent diseases, 
 27.12  establishing causal connections between diseases and work in 
 27.13  environmental conditions, and conducting other research relating 
 27.14  to health problems, in recognition of the fact that occupational 
 27.15  health standards present problems often different from those 
 27.16  involved in occupational safety; 
 27.17     (f) Utilizing advances already made by federal laws and 
 27.18  regulations providing safe and healthful working conditions; 
 27.19     (g) Providing criteria which will assure insofar as 
 27.20  practicable that no public employee will suffer diminished 
 27.21  health, functional capacity, or life expectancy as a result of 
 27.22  work experience; 
 27.23     (h) Providing an effective enforcement program which shall 
 27.24  include a prohibition against giving advance notice of an 
 27.25  inspection and sanctions for any individual violating this 
 27.26  prohibition; 
 27.27     (i) Providing for appropriate reporting procedures with 
 27.28  respect to occupational safety and health, which procedures will 
 27.29  help achieve the objectives of this chapter and accurately 
 27.30  describe the nature of the occupational safety and health 
 27.31  problem; 
 27.32     (j) Encouraging joint labor-management efforts to reduce 
 27.33  injuries and diseases arising out of employment; 
 27.34     (k) Providing consultation to public employees and public 
 27.35  employers which will aid them in complying with their 
 27.36  responsibilities under this chapter where such consultation does 
 28.1   not interfere with the effective enforcement of this chapter; 
 28.2      (l) Providing for training programs to increase the number 
 28.3   and competence of personnel engaged in the field of occupational 
 28.4   safety and health. 
 28.5      Sec. 11.  Minnesota Statutes 2002, section 182.651, 
 28.6   subdivision 7, is amended to read: 
 28.7      Subd. 7.  "Employer" or "public employer" means a person 
 28.8   who employs one or more employees and includes any person who 
 28.9   has the power to hire, fire, or transfer, or who acts in the 
 28.10  interest of, or as a representative of, an employer and includes 
 28.11  a corporation, partnership, association, group of persons, and 
 28.12  the state and all of its political subdivisions. 
 28.13     Sec. 12.  Minnesota Statutes 2002, section 182.651, 
 28.14  subdivision 8, is amended to read: 
 28.15     Subd. 8.  "Federal standard" means a an occupational safety 
 28.16  and health standard, or modification thereof, adopted by a rule 
 28.17  promulgated under section 6 of the federal Occupational Safety 
 28.18  and Health Act of 1970 Public Law Number 91-596. 
 28.19     Sec. 13.  Minnesota Statutes 2002, section 182.651, 
 28.20  subdivision 9, is amended to read: 
 28.21     Subd. 9.  "Employee" means any person suffered or permitted 
 28.22  to work by an employer, including any person acting directly or 
 28.23  indirectly in the interest of or as a representative of, an 
 28.24  employer, and shall include state, county, town, city, school 
 28.25  district, or governmental subdivision.  
 28.26     Sec. 14.  Minnesota Statutes 2002, section 182.651, 
 28.27  subdivision 13, is amended to read: 
 28.28     Subd. 13.  "Act" means the Minnesota Occupational Safety 
 28.29  and Health Act of 1973 2003. 
 28.30     Sec. 15.  Minnesota Statutes 2002, section 182.651, 
 28.31  subdivision 14, is amended to read: 
 28.32     Subd. 14.  "Hazardous substance" means a chemical or 
 28.33  substance, or mixture of chemicals and substances, which:  
 28.34     (a) is regulated by the federal Occupational Safety and 
 28.35  Health Administration under the Code of Federal Regulations, 
 28.36  title 29, part 1910, subpart Z; or. 
 29.1      (b) is either toxic or highly toxic; an irritant; 
 29.2   corrosive; a strong oxidizer; a strong sensitizer; combustible; 
 29.3   either flammable or extremely flammable; dangerously reactive; 
 29.4   pyrophoric; pressure-generating; compressed gas; carcinogen; 
 29.5   teratogen; mutagen; reproductive toxic agent; or that otherwise, 
 29.6   according to generally accepted documented medical or scientific 
 29.7   evidence, may cause substantial acute or chronic personal injury 
 29.8   or illness during or as a direct result of any customary or 
 29.9   reasonably foreseeable accidental or intentional exposure to the 
 29.10  chemical or substance; or 
 29.11     (c) is determined by the commissioner as a part of the 
 29.12  standard for the chemical or substance or mixture of chemicals 
 29.13  and substances to present a significant risk to worker health 
 29.14  and safety or imminent danger of death or serious physical harm 
 29.15  to an employee as a result of foreseeable use, handling, 
 29.16  accidental spill, exposure, or contamination.  
 29.17     In determining whether a chemical or substance is hazardous 
 29.18  under clause (b) or clause (c), the commissioner shall, if 
 29.19  appropriate, apply the criteria contained in the American 
 29.20  National Standard Institute's American National Standard for the 
 29.21  Precautionary Labeling of Hazardous Industrial Chemicals, 
 29.22  Z129.1-1982, or any later revision of that standard.  In 
 29.23  addition the commissioner may consider the information contained 
 29.24  in appendices which do not appear in the standard and any other 
 29.25  available scientific evidence which substantially indicates a 
 29.26  chemical or substance or mixture of chemicals and substances is 
 29.27  hazardous.  
 29.28     Hazardous substance does not include a substance being 
 29.29  developed or handled by a technically qualified individual in a 
 29.30  research, medical research, medical diagnostic or medical 
 29.31  educational laboratory or in a health care facility or in a 
 29.32  clinic associated with the laboratory or health care facility, 
 29.33  or in a pharmacy registered and licensed under chapter 151.  
 29.34  This exemption applies only to technically qualified individuals 
 29.35  and not to persons working in the same work area who are not 
 29.36  technically qualified individuals.  
 30.1      Sec. 16.  Minnesota Statutes 2002, section 182.652, 
 30.2   subdivision 1, is amended to read: 
 30.3      Subdivision 1.  The provisions of this chapter or any 
 30.4   federal standard or rule promulgated pursuant to this chapter 
 30.5   shall apply to all places of employment within this state except 
 30.6   as noted in subdivision 2.  
 30.7      Sec. 17.  Minnesota Statutes 2002, section 182.653, 
 30.8   subdivision 3, is amended to read: 
 30.9      Subd. 3.  Each employer shall comply with occupational 
 30.10  safety and health federal standards or rules promulgated 
 30.11  pursuant to this chapter.  
 30.12     Sec. 18.  Minnesota Statutes 2002, section 182.654, 
 30.13  subdivision 2, is amended to read: 
 30.14     Subd. 2.  Each employee shall comply with occupational 
 30.15  safety and health federal standards and all rules and orders 
 30.16  issued pursuant to this chapter which are applicable to the 
 30.17  employee's own actions and conduct.  
 30.18     Sec. 19.  Minnesota Statutes 2002, section 182.654, 
 30.19  subdivision 4, is amended to read: 
 30.20     Subd. 4.  Each employee or an authorized representative 
 30.21  shall be notified by an employer of any application for a 
 30.22  temporary order granting the employer a variance from any 
 30.23  provision of this chapter or federal standard or rule 
 30.24  promulgated pursuant to this chapter.  
 30.25     Sec. 20.  Minnesota Statutes 2002, section 182.654, 
 30.26  subdivision 5, is amended to read: 
 30.27     Subd. 5.  The employee representative shall be given the 
 30.28  opportunity to participate in any hearing which concerns an 
 30.29  application by an employer for a variance from a federal 
 30.30  standard promulgated under this chapter.  
 30.31     Sec. 21.  Minnesota Statutes 2002, section 182.654, 
 30.32  subdivision 6, is amended to read: 
 30.33     Subd. 6.  Any employee who may be adversely affected by a 
 30.34  federal standard or variance issued pursuant to section 182.655 
 30.35  may file a petition stating a position with regard to the 
 30.36  proposed federal standard or variance with the commissioner.  
 31.1      Sec. 22.  Minnesota Statutes 2002, section 182.654, 
 31.2   subdivision 11, is amended to read: 
 31.3      Subd. 11.  An employee acting in good faith has the right 
 31.4   to refuse to work under conditions which the employee reasonably 
 31.5   believes present an imminent danger of death or serious physical 
 31.6   harm to the employee.  
 31.7      A reasonable belief of imminent danger of death or serious 
 31.8   physical harm includes but is not limited to a reasonable belief 
 31.9   of the employee that the employee has been assigned to work in 
 31.10  an unsafe or unhealthful manner with a hazardous substance, 
 31.11  harmful physical agent or infectious agent chemical.  
 31.12     An employer may not discriminate against an employee for a 
 31.13  good faith refusal to perform assigned tasks if the employee has 
 31.14  requested that the employer correct the hazardous conditions but 
 31.15  the conditions remain uncorrected.  
 31.16     An employee who has refused in good faith to perform 
 31.17  assigned tasks and who has not been reassigned to other tasks by 
 31.18  the employer shall, in addition to retaining a right to 
 31.19  continued employment, receive pay for the tasks which would have 
 31.20  been performed if (1) the employee requests the commissioner to 
 31.21  inspect and determine the nature of the hazardous condition, and 
 31.22  (2) the commissioner determines that the employee, by performing 
 31.23  the assigned tasks, would have been placed in imminent danger of 
 31.24  death or serious physical harm.  
 31.25     Sec. 23.  Minnesota Statutes 2002, section 182.655, 
 31.26  subdivision 1, is amended to read: 
 31.27     Subdivision 1.  Federal standards and variances shall be 
 31.28  proposed, granted, adopted, modified, or revoked by the 
 31.29  commissioner in accordance with the procedures of this section.  
 31.30  The federal standards and variances are exempt from the 
 31.31  Administrative Procedure Act but, to the extent authorized by 
 31.32  law to adopt rules, the commissioner may use the provisions of 
 31.33  section 14.386, paragraph (a), clauses (1) and (3).  Section 
 31.34  14.386, paragraph (b), does not apply to these rules. 
 31.35     Sec. 24.  Minnesota Statutes 2002, section 182.655, 
 31.36  subdivision 2, is amended to read: 
 32.1      Subd. 2.  Whenever the commissioner, in order to serve the 
 32.2   objectives of this chapter, determines that a rule federal 
 32.3   standard should be promulgated under this section, establishing, 
 32.4   modifying, or revoking an occupational safety and health a 
 32.5   federal standard, the commissioner shall publish a proposed rule 
 32.6   federal standard promulgating, modifying, or revoking an 
 32.7   occupational safety or health a federal standard and shall 
 32.8   afford interested persons a period of 30 days after publication 
 32.9   to submit written data or comments.  
 32.10     On or before the last day of the period provided for the 
 32.11  submission of written data or comments, any interested person 
 32.12  may file with the commissioner written objections to the 
 32.13  proposed rule federal standard, stating the grounds therefor 
 32.14  therefore and requesting a public hearing on such the objections.
 32.15  Within 30 days after the last day for filing such the 
 32.16  objections, the commissioner shall publish a notice specifying 
 32.17  the occupational safety or health federal standard to which 
 32.18  objections have been filed and a hearing requested, and 
 32.19  specifying a time and place for such a hearing.  
 32.20     Sec. 25.  Minnesota Statutes 2002, section 182.655, 
 32.21  subdivision 3, is amended to read: 
 32.22     Subd. 3.  Within 60 days after the expiration of the period 
 32.23  provided for the submission of written data or comments or 
 32.24  within 60 days after the completion of any hearing, the 
 32.25  commissioner shall issue a rule federal standard promulgating, 
 32.26  modifying, or revoking an occupational safety or health a 
 32.27  federal standard or make a determination that a rule federal 
 32.28  standard should not be promulgated.  Such a rule federal 
 32.29  standard may contain a provision delaying its effective date for 
 32.30  such period, not in excess of 90 days, as the commissioner 
 32.31  determines may be necessary to insure that affected employers 
 32.32  and employees will be informed of the existence of the federal 
 32.33  standard and of its terms and that employers affected are given 
 32.34  an opportunity to familiarize themselves and their employees 
 32.35  with the existence of the requirements of the federal standard.  
 32.36     Sec. 26.  Minnesota Statutes 2002, section 182.655, 
 33.1   subdivision 5, is amended to read: 
 33.2      Subd. 5.  Any employer may apply to the commissioner for a 
 33.3   temporary order granting a variance from a federal standard or 
 33.4   any provision thereof promulgated under this section.  Such The 
 33.5   temporary order shall be granted only if the employer files an 
 33.6   application which meets the requirements of subdivision 7 and 
 33.7   establishes that: 
 33.8      (a)  It is unable to comply with a federal standard by its 
 33.9   effective date because of unavailability of professional or 
 33.10  technical personnel or of materials and equipment needed to come 
 33.11  into compliance with the federal standard or because necessary 
 33.12  construction or alteration of facilities cannot be completed by 
 33.13  the effective date; 
 33.14     (b)  It is taking all available steps to safeguard 
 33.15  employees against the hazards covered by the federal standard; 
 33.16  and 
 33.17     (c)  It has an effective program for coming into compliance 
 33.18  with the federal standard as quickly as practicable.  
 33.19     Sec. 27.  Minnesota Statutes 2002, section 182.655, 
 33.20  subdivision 6, is amended to read: 
 33.21     Subd. 6.  Any temporary order issued under this section 
 33.22  shall prescribe the practices, means, methods, operations and 
 33.23  processes which the employer must adopt and use while the order 
 33.24  is in effect and state in detail the employer's program for 
 33.25  coming into compliance with the federal standard.  Such A 
 33.26  temporary order may be granted only after notice to employees 
 33.27  and to employee representative and an opportunity for a hearing; 
 33.28  provided, that the commissioner may issue one interim order to 
 33.29  be effective until a decision is made on the basis of a 
 33.30  hearing.  No temporary order may be in effect for longer than 
 33.31  the period needed by the employer to achieve compliance with the 
 33.32  federal standard or one year, whichever is shorter, except that 
 33.33  such an order may be renewed not more than twice.  No such order 
 33.34  shall be renewed unless the requirements of this section are met 
 33.35  and an application for renewal is filed at least 90 days prior 
 33.36  to the expiration date of the order.  No interim order may 
 34.1   remain in effect for longer than 180 days.  
 34.2      Sec. 28.  Minnesota Statutes 2002, section 182.655, 
 34.3   subdivision 7, is amended to read: 
 34.4      Subd. 7.  An application for a temporary order under this 
 34.5   section shall contain: 
 34.6      (a) A specification of the federal standard or portion 
 34.7   thereof from which the employer seeks a variance; 
 34.8      (b) A representation by the employer, supported by 
 34.9   representations from qualified persons having first hand 
 34.10  knowledge of the facts represented, that it is unable to comply 
 34.11  with the federal standard or portion thereof and a detailed 
 34.12  statement of the reasons therefor therefore; 
 34.13     (c) A statement of the steps being taken and which will be 
 34.14  taken, with specific dates, to protect employees against the 
 34.15  hazards covered by the federal standard; 
 34.16     (d) A statement of when it expects to be able to comply 
 34.17  with the federal standard and what steps it has taken and will 
 34.18  take, with specific dates, to come into compliance with 
 34.19  the federal standard; and 
 34.20     (e) A certification that it has informed employees of the 
 34.21  application by giving a copy thereof to their authorized 
 34.22  representative, posting a statement giving a summary of the 
 34.23  application and specifying where a copy may be examined at the 
 34.24  place or places where notices to employees are normally posted, 
 34.25  and by other appropriate means, and that it has informed 
 34.26  employees of their right to petition the commissioner for a 
 34.27  hearing.  
 34.28     Sec. 29.  Minnesota Statutes 2002, section 182.655, 
 34.29  subdivision 8, is amended to read: 
 34.30     Subd. 8.  Any affected employer may apply to the 
 34.31  commissioner for a rule or order for a permanent variance from a 
 34.32  federal standard promulgated under this section.  Affected 
 34.33  employees shall be given a notice of each such application and 
 34.34  an opportunity to participate in a hearing.  The commissioner 
 34.35  shall issue such rule or order if the commissioner determines on 
 34.36  the record, after opportunity for an inspection where 
 35.1   appropriate and a hearing, that the proponent of the variance 
 35.2   has demonstrated by a preponderance of the evidence that the 
 35.3   conditions, practices, means, methods, operations, or processes 
 35.4   used or proposed to be used by an employer will provide 
 35.5   employment and places of employment to employees which are as 
 35.6   safe and healthful as those which would prevail if there was 
 35.7   compliance with the federal standard.  The rule or order so 
 35.8   issued shall prescribe the conditions the employer must 
 35.9   maintain, and the practices, means, methods, operations, and 
 35.10  processes which it must adopt and utilize.  Such a rule or order 
 35.11  may be modified or revoked upon application by an employer, 
 35.12  employees, or by the commissioner on the commissioner's own 
 35.13  motion, in the manner prescribed for its issuance under this 
 35.14  subdivision at any time after six months from its issuance.  
 35.15     Sec. 30.  Minnesota Statutes 2002, section 182.655, 
 35.16  subdivision 9, is amended to read: 
 35.17     Subd. 9.  The commissioner is authorized to grant a 
 35.18  variance from any federal standard or portion thereof whenever 
 35.19  the commissioner determines that such a variance is necessary to 
 35.20  permit an employer to participate in an experiment approved by 
 35.21  the commissioner or the United States Secretary of Labor or the 
 35.22  United States Secretary of Health, Education and Welfare, 
 35.23  designed to demonstrate or validate new and improved techniques 
 35.24  to safeguard the health and safety of workers.  
 35.25     Sec. 31.  Minnesota Statutes 2002, section 182.655, 
 35.26  subdivision 11, is amended to read: 
 35.27     Subd. 11.  The commissioner shall adopt an emergency 
 35.28  temporary federal standard to take immediate effect upon 
 35.29  publication if the commissioner determines: 
 35.30     (a) That employees are exposed to grave or imminent danger 
 35.31  from exposure to hazardous substances or harmful physical agents 
 35.32  or other hazards; and 
 35.33     (b) That the emergency federal standard is necessary to 
 35.34  protect employees from the danger.  The federal standard shall 
 35.35  be effective until superseded by a federal standard adopted in 
 35.36  accordance with the procedures prescribed in subdivision 2.  
 36.1      Upon publication of the federal standard or federal 
 36.2   standards, which interested persons may receive upon request and 
 36.3   payment of fees, the commissioner shall commence a proceeding in 
 36.4   accordance with subdivision 2 and the federal standard as 
 36.5   published shall also serve as a proposed rule federal standard 
 36.6   for the proceeding; the commissioner shall adopt a federal 
 36.7   standard under this section no later than six months after the 
 36.8   publication of the emergency federal standard.  
 36.9      Sec. 32.  Minnesota Statutes 2002, section 182.655, 
 36.10  subdivision 13, is amended to read: 
 36.11     Subd. 13.  All standards adopted by The commissioner shall 
 36.12  be at least as effective as those which only adopt, in 
 36.13  accordance with this section, federal standards that are 
 36.14  presently or will, in the future, be promulgated under section 6 
 36.15  of the federal Occupational Safety and Health Act of 1970.  The 
 36.16  commissioner does not have the authority to adopt occupational 
 36.17  safety and health standards different from the federal standards 
 36.18  that are presently, or will in the future be promulgated under 
 36.19  section 6 of the federal Occupational Safety and Health Act of 
 36.20  1970. 
 36.21     Sec. 33.  Minnesota Statutes 2002, section 182.6555, is 
 36.22  amended to read: 
 36.23     182.6555 [REDUCING OCCUPATIONAL EXPOSURES TO BLOODBORNE 
 36.24  PATHOGENS THROUGH SHARPS INJURIES.] 
 36.25     (a) Employers must comply with Code of Federal Regulations, 
 36.26  title 29, section 1910.1030, to eliminate or minimize employee 
 36.27  exposure to bloodborne pathogens through sharps injuries.  
 36.28     (b) Written exposure control plans prepared by employers 
 36.29  must be reviewed at least annually and whenever necessary to 
 36.30  reflect new or modified tasks and procedures which affect 
 36.31  occupational exposures and to reflect new or revised employee 
 36.32  positions with occupational exposure.  The requirement to review 
 36.33  and update the plan means that the plan must reflect changes in 
 36.34  technology that eliminate or reduce exposure to bloodborne 
 36.35  pathogens.  The exposure control plan must document 
 36.36  consideration and implementation of appropriate commercially 
 37.1   available and effective engineering controls, for example, 
 37.2   needleless systems and sharps with engineered sharps injury 
 37.3   protection, designed to eliminate or minimize exposure. 
 37.4      (c) A safety committee established under section 182.676 
 37.5   must make advisory recommendations for the use of effective 
 37.6   engineering controls.  The recommendations are not binding on 
 37.7   the employer.  One-half of the members of the safety committee 
 37.8   must be employee representatives of job classifications that 
 37.9   would use or may reasonably anticipate encountering any device 
 37.10  in the category being evaluated in the performance of the 
 37.11  employee's duties.  The employer may establish a subcommittee of 
 37.12  the safety committee to meet the requirements of this 
 37.13  paragraph.  One-half of the members of this subcommittee must be 
 37.14  employee representatives of job classifications that would use 
 37.15  or may reasonably anticipate encountering any device in the 
 37.16  category being evaluated in the performance of the employee's 
 37.17  duties.  Employers not required to establish a safety committee 
 37.18  under section 182.676 must involve their employees in the 
 37.19  evaluation of effective engineering controls. 
 37.20     (d) This section does not prohibit the use of a prefilled 
 37.21  syringe that is approved by the federal Food and Drug 
 37.22  Administration.  This paragraph expires May 1, 2003.  
 37.23     (e) Employers must establish internal procedures to 
 37.24  document the route of exposure and the circumstances under which 
 37.25  an exposure incident occurred.  This information should include: 
 37.26     (1) engineering controls in use at the time; 
 37.27     (2) work practices followed; 
 37.28     (3) a description and brand name of the device in use; 
 37.29     (4) protective equipment or clothing that was used at the 
 37.30  time of the exposure incident; 
 37.31     (5) location; 
 37.32     (6) procedure being performed when the incident occurred; 
 37.33     (7) the employee's training; and 
 37.34     (8) the injured employee's opinion about whether any other 
 37.35  engineering, administrative, or work practice control could have 
 37.36  prevented the injury and the basis for that opinion. 
 38.1      Sec. 34.  Minnesota Statutes 2002, section 182.6575, is 
 38.2   amended to read: 
 38.3      182.6575 [WAIVER PROHIBITED.] 
 38.4      No employer may request or require any employee to waive 
 38.5   any rights under this chapter or under occupational safety and 
 38.6   health rules or federal standards adopted pursuant to this 
 38.7   chapter.  
 38.8      Sec. 35.  Minnesota Statutes 2002, section 182.658, is 
 38.9   amended to read: 
 38.10     182.658 [POSTING REQUIREMENTS.] 
 38.11     The commissioner shall issue rules requiring that 
 38.12  employers, through posting of notices or other appropriate 
 38.13  means, keep their employees informed of their protections and 
 38.14  obligations under this chapter including the provisions of 
 38.15  applicable rules and federal standards.  
 38.16     Sec. 36.  Minnesota Statutes 2002, section 182.659, 
 38.17  subdivision 1, is amended to read: 
 38.18     Subdivision 1.  In order to carry out the purposes of this 
 38.19  chapter, the commissioner, upon presenting appropriate 
 38.20  credentials to the owner, operator, employer or agent in charge, 
 38.21  is authorized to enter without delay and at reasonable times any 
 38.22  place of employment; and to inspect and investigate during 
 38.23  regular working hours and at other reasonable times, and within 
 38.24  reasonable limits and in a reasonable manner, any such place of 
 38.25  employment and all pertinent conditions, structures, machines, 
 38.26  apparatus, devices, equipment, and materials therein, and to 
 38.27  question privately any such employer, owner, operator, agent, or 
 38.28  employee.  
 38.29     Sec. 37.  Minnesota Statutes 2002, section 182.659, 
 38.30  subdivision 4, is amended to read: 
 38.31     Subd. 4.  Any employee or representative of employees who 
 38.32  believes that a violation of a safety or health federal standard 
 38.33  exists that threatens physical harm, or that an imminent danger 
 38.34  exists, may request an inspection by giving notice to the 
 38.35  commissioner of such violation or danger.  Any such notice shall 
 38.36  be reduced to writing, shall set forth with reasonable 
 39.1   particularity the grounds for the notice, and shall be signed by 
 39.2   the employee or representative of employees.  A copy of the 
 39.3   notice shall be provided the employer or agent no later than the 
 39.4   time of the inspection, except that, upon the request of the 
 39.5   person giving such notice, the employee's name and the names of 
 39.6   individual employees referred to therein shall not appear in 
 39.7   such copy or on any record published, released, or made 
 39.8   available pursuant to section 182.663, subdivision 4.  If upon 
 39.9   receipt of such notification the commissioner determines that 
 39.10  there are reasonable grounds to believe that such violation or 
 39.11  danger exists, the commissioner shall make a special inspection 
 39.12  in accordance with the provisions of this section as soon as 
 39.13  practicable, to determine if such danger or violation exists.  
 39.14  An inspection conducted pursuant to a complaint may cover all of 
 39.15  the premises of the employer and shall not be limited to that 
 39.16  portion of the premises specified in the notice.  If the 
 39.17  commissioner determines that there are no reasonable grounds to 
 39.18  believe that such a violation or danger exists the commissioner 
 39.19  shall notify the employee or representative of employees in 
 39.20  writing of such determination.  Upon such notification the 
 39.21  employee or the employee representative may request the 
 39.22  commissioner to reconsider the determination.  Upon receiving 
 39.23  such request the commissioner shall review the determination.  
 39.24     Sec. 38.  Minnesota Statutes 2002, section 182.659, 
 39.25  subdivision 6, is amended to read: 
 39.26     Subd. 6.  Upon the refusal or anticipated refusal, based on 
 39.27  an employer's refusal to permit entrance on a prior occasion, of 
 39.28  an owner, operator, employer or agent in charge to permit entry 
 39.29  as specified in this chapter, the commissioner may apply for an 
 39.30  order in the district court in the county in which a workplace 
 39.31  is located, which compels the employer to permit the 
 39.32  commissioner to enter and inspect the workplace.  
 39.33     Sec. 39.  Minnesota Statutes 2002, section 182.659, 
 39.34  subdivision 8, is amended to read: 
 39.35     Subd. 8.  Neither the commissioner nor any employee of the 
 39.36  department, including those employees of the department of 
 40.1   health providing services to the department of labor and 
 40.2   industry, pursuant to section 182.67, subdivision 1, is subject 
 40.3   to subpoena for purposes of inquiry into any occupational safety 
 40.4   and health inspection except in enforcement proceedings brought 
 40.5   under this chapter.  Data that identify individuals who provide 
 40.6   data to the department as part of an investigation conducted 
 40.7   under this chapter shall be private. 
 40.8      Sec. 40.  Minnesota Statutes 2002, section 182.66, 
 40.9   subdivision 1, is amended to read: 
 40.10     Subdivision 1.  After an inspection or investigation, if 
 40.11  the commissioner believes that an employer has violated a 
 40.12  requirement of section 182.653, or any federal standard, rule, 
 40.13  or order adopted pursuant to this chapter, the commissioner 
 40.14  shall, with reasonable promptness and in no event later than six 
 40.15  months following the inspection, issue a written citation to the 
 40.16  employer by certified mail.  The citation shall describe with 
 40.17  particularity the nature of the violation, including a reference 
 40.18  to the provision of the act, federal standard, rule, or order 
 40.19  alleged to have been violated.  In addition, the citation shall 
 40.20  fix a reasonable time for the abatement of the violation.  
 40.21     Sec. 41.  Minnesota Statutes 2002, section 182.663, 
 40.22  subdivision 5, is amended to read: 
 40.23     Subd. 5.  Any information obtained by the commissioner 
 40.24  under this chapter shall be obtained with a minimum burden upon 
 40.25  employers, especially those operating small business.  
 40.26  Unnecessary duplication of efforts in obtaining information 
 40.27  shall be reduced to the maximum extent feasible.  
 40.28     Sec. 42.  Minnesota Statutes 2002, section 182.665, is 
 40.29  amended to read: 
 40.30     182.665 [JUDICIAL REVIEW.] 
 40.31     Any person aggrieved by a final order of the board in a 
 40.32  contested case, or by any federal standard, rule, or order 
 40.33  promulgated by the commissioner, is entitled to judicial review 
 40.34  thereof in accordance with the applicable provisions of chapter 
 40.35  14. 
 40.36     Sec. 43.  Minnesota Statutes 2002, section 182.666, 
 41.1   subdivision 1, is amended to read: 
 41.2      Subdivision 1.  Any employer who willfully or repeatedly 
 41.3   violates the requirements of section 182.653, or any federal 
 41.4   standard, rule, or order adopted under the authority of the 
 41.5   commissioner as provided in this chapter, may be assessed a fine 
 41.6   not to exceed $70,000 for each violation.  The minimum fine for 
 41.7   a willful violation is $5,000. 
 41.8      Sec. 44.  Minnesota Statutes 2002, section 182.666, 
 41.9   subdivision 2, is amended to read: 
 41.10     Subd. 2.  Any employer who has received a citation for a 
 41.11  serious violation of its duties under section 182.653, or any 
 41.12  federal standard, rule, or order adopted under the authority of 
 41.13  the commissioner as provided in this chapter, shall be assessed 
 41.14  a fine not to exceed $7,000 for each violation.  
 41.15     Sec. 45.  Minnesota Statutes 2002, section 182.667, 
 41.16  subdivision 2, is amended to read: 
 41.17     Subd. 2.  Any employer who willfully or repeatedly violates 
 41.18  the requirements of section 182.653, any safety and health 
 41.19  federal standard promulgated under this chapter, any existing 
 41.20  rule promulgated adopted by the department, may be punished by a 
 41.21  fine of not more than $20,000 or by imprisonment for not more 
 41.22  than six months or by both; except, that if the conviction is 
 41.23  for a violation committed after a first conviction of such 
 41.24  person, punishment shall be a fine of not more than $35,000 or 
 41.25  by imprisonment for not more than one year, or by both.  
 41.26     Sec. 46.  Minnesota Statutes 2002, section 182.668, 
 41.27  subdivision 2, is amended to read: 
 41.28     Subd. 2.  [CLASSIFICATION OF DATA.] Information that has 
 41.29  been registered pursuant to subdivision 1 shall be classified as 
 41.30  nonpublic or private data as defined in section 13.02, 
 41.31  subdivisions 9 and 12.  
 41.32     All other Information reported to or otherwise obtained by 
 41.33  the commissioner or a representative in connection with any 
 41.34  inspection or proceeding under this chapter which contains or 
 41.35  which might reveal a trade secret shall be classified as 
 41.36  nonpublic or private data as defined in section 13.02, 
 42.1   subdivisions 9 and 12.  Information classified as nonpublic or 
 42.2   private may be disclosed to other officers or employees 
 42.3   concerned with carrying out this chapter or when relevant in any 
 42.4   proceeding under this chapter or when otherwise required in 
 42.5   order to comply with federal law or regulation but only to the 
 42.6   extent required by the federal law or regulation.  
 42.7      Sec. 47.  Minnesota Statutes 2002, section 182.668, 
 42.8   subdivision 3, is amended to read: 
 42.9      Subd. 3.  [DETERMINATION BY COMMISSIONER.] On the request 
 42.10  of a manufacturer, an employer, employee, or employee 
 42.11  representative, the commissioner shall determine whether 
 42.12  information registered pursuant to subdivision 1 or otherwise 
 42.13  reported to or obtained by the commissioner is a trade secret as 
 42.14  defined in section 325C.01, subdivision 5.  In making a 
 42.15  determination the commissioner shall also determine whether the 
 42.16  information should in any event be disclosed in order to 
 42.17  properly protect the health and safety of employees.  
 42.18     An employer or manufacturer that disagrees with a 
 42.19  determination under this subdivision may pursue its remedies as 
 42.20  provided in chapter 325C or other relevant law.  
 42.21     Sec. 48.  Minnesota Statutes 2002, section 182.6731, is 
 42.22  amended to read: 
 42.23     182.6731 [SAFETY AWARDS.] 
 42.24     The commissioner may present awards to businesses employers 
 42.25  that have excellent safety records.  The award shall be 
 42.26  presented jointly to the company employer and its employees.  
 42.27  The commissioner may solicit advice on what businesses employers 
 42.28  shall receive the awards from representatives of labor 
 42.29  and business employers. 
 42.30     Sec. 49.  [REPEALER.] 
 42.31     (a) Minnesota Statutes 2002, sections 177.26, subdivision 
 42.32  3; 178.11; 182.651, subdivisions 11, 15, 16, 17, 18, 19, and 20; 
 42.33  182.6521; 182.653, subdivisions 4a, 4b, 4c, 4d, 4e, 4f, 4g, 5, 
 42.34  6, 7, 8, 9, and 10; 182.654, subdivisions 3, 7, and 10; 182.655, 
 42.35  subdivisions 4, 10, 10a, 12, and 14; 182.663, subdivision 3; 
 42.36  182.668, subdivisions 1 and 5; 182.672; and 182.676, are 
 43.1   repealed. 
 43.2      (b) Minnesota Rules, parts 5205.0020; 5205.0030; 5205.0040; 
 43.3   5205.0050; 5205.0060; 5205.0065; 5205.0080; 5205.0100; 
 43.4   5205.0105; 5205.0110, subparts 1, 2a, 3, and 4; 5205.0115; 
 43.5   5205.0116; 5205.0120; 5205.0130; 5205.0140; 5205.0150; 
 43.6   5205.0200; 5205.0330; 5205.0550; 5205.0560; 5205.0570; 
 43.7   5205.0580; 5205.0650; 5205.0660; 5205.0665; 5205.0670; 
 43.8   5205.0675; 5205.0685; 5205.0686; 5205.0690; 5205.0700; 
 43.9   5205.0710; 5205.0750; 5205.0755; 5205.0760; 5205.0765; 
 43.10  5205.0770; 5205.0850; 5205.0860; 5205.0865; 5205.0870; 
 43.11  5205.0880; 5205.0890; 5205.1200; 5205.1210; 5205.1220; 
 43.12  5205.1230; 5205.1400; 5206.0100, subparts 1, 1a, 1b, 1c, 2, 2a, 
 43.13  3, 3a, 4, 5, 6, 7, 7a, 8, 9, 10, 11, 11a, 11b, 12, 13, 14, 14a, 
 43.14  14b, 14c, 16, 16a, 17, and 19; 5206.0200; 5206.0300, subparts 1, 
 43.15  2, 3, 6, and 7; 5206.0400; 5206.0500; 5206.0600; 5206.0700; 
 43.16  5206.0800; 5206.1000; 5206.1100; 5206.1200; 5206.1300; 
 43.17  5206.1400; 5206.1500; 5206.1600; 5206.1700; 5206.1800; 
 43.18  5206.1900; 5206.2000; 5207.0005; 5207.0010; 5207.0020; 
 43.19  5207.0030; 5207.0035; 5207.0040; 5207.0050; 5207.0060; 
 43.20  5207.0100; 5207.0200; 5207.0210; 5207.0250; 5207.0300, subpart 
 43.21  1; 5207.0301; 5207.0302; 5207.0303; 5207.0304; 5207.0310; 
 43.22  5207.0320; 5207.0400; 5207.0410; 5207.0500; 5207.0510; 
 43.23  5207.0520; 5207.0530; 5207.0540; 5207.0600; 5207.0610; 
 43.24  5207.0620; 5207.0630; 5207.0700; 5207.0710; 5207.0720; 
 43.25  5207.0730; 5207.0740; 5207.0800; 5207.0810; 5207.0850; 
 43.26  5207.0900; 5207.0910; and 5207.1000, are repealed. 
 43.27                             ARTICLE 4  
 43.28                  DEPARTMENT OF ECONOMIC SECURITY 
 43.29                         POLICY PROVISIONS 
 43.30     Section 1.  Minnesota Statutes 2002, section 124D.68, 
 43.31  subdivision 2, is amended to read: 
 43.32     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
 43.33  eligible to participate in the graduation incentives program:  
 43.34     (a) any pupil under the age of 21 who:  
 43.35     (1) performs substantially below the performance level for 
 43.36  pupils of the same age in a locally determined achievement test; 
 44.1      (2) is at least one year behind in satisfactorily 
 44.2   completing coursework or obtaining credits for graduation; 
 44.3      (3) is pregnant or is a parent; 
 44.4      (4) has been assessed as chemically dependent; 
 44.5      (5) has been excluded or expelled according to sections 
 44.6   121A.40 to 121A.56; 
 44.7      (6) has been referred by a school district for enrollment 
 44.8   in an eligible program or a program pursuant to section 124D.69; 
 44.9      (7) is a victim of physical or sexual abuse; 
 44.10     (8) has experienced mental health problems; 
 44.11     (9) has experienced homelessness sometime within six months 
 44.12  before requesting a transfer to an eligible program; 
 44.13     (10) speaks English as a second language or has limited 
 44.14  English proficiency; or 
 44.15     (11) has withdrawn from school or has been chronically 
 44.16  truant; or 
 44.17     (b) any person who is at least 21 years of age and who:  
 44.18     (1) has received fewer than 14 years of public or nonpublic 
 44.19  education, beginning at age 5; 
 44.20     (2) has not completed the requirements for a high school 
 44.21  diploma; and 
 44.22     (3) at the time of application, (i) is eligible for 
 44.23  unemployment benefits or has exhausted the benefits, (ii) is 
 44.24  eligible for, or is receiving income maintenance and support 
 44.25  services, as defined in section 268.0111, subdivision 5, or 
 44.26  (iii) is eligible for services under the displaced homemaker 
 44.27  program, state wage-subsidy program, or any programs under the 
 44.28  federal Jobs Training Partnership Act or its successor. 
 44.29     Sec. 2.  Minnesota Statutes 2002, section 256D.05, 
 44.30  subdivision 1, is amended to read: 
 44.31     Subdivision 1.  [ELIGIBILITY.] (a) Each assistance unit 
 44.32  with income and resources less than the standard of assistance 
 44.33  established by the commissioner and with a member who is a 
 44.34  resident of the state shall be eligible for and entitled to 
 44.35  general assistance if the assistance unit is: 
 44.36     (1) a person who is suffering from a professionally 
 45.1   certified permanent or temporary illness, injury, or incapacity 
 45.2   which is expected to continue for more than 30 days and which 
 45.3   prevents the person from obtaining or retaining employment; 
 45.4      (2) a person whose presence in the home on a substantially 
 45.5   continuous basis is required because of the professionally 
 45.6   certified illness, injury, incapacity, or the age of another 
 45.7   member of the household; 
 45.8      (3) a person who has been placed in, and is residing in, a 
 45.9   licensed or certified facility for purposes of physical or 
 45.10  mental health or rehabilitation, or in an approved chemical 
 45.11  dependency domiciliary facility, if the placement is based on 
 45.12  illness or incapacity and is according to a plan developed or 
 45.13  approved by the county agency through its director or designated 
 45.14  representative; 
 45.15     (4) a person who resides in a shelter facility described in 
 45.16  subdivision 3; 
 45.17     (5) a person not described in clause (1) or (3) who is 
 45.18  diagnosed by a licensed physician, psychological practitioner, 
 45.19  or other qualified professional, as mentally retarded or 
 45.20  mentally ill, and that condition prevents the person from 
 45.21  obtaining or retaining employment; 
 45.22     (6) a person who has an application pending for, or is 
 45.23  appealing termination of benefits from, the social security 
 45.24  disability program or the program of supplemental security 
 45.25  income for the aged, blind, and disabled, provided the person 
 45.26  has a professionally certified permanent or temporary illness, 
 45.27  injury, or incapacity which is expected to continue for more 
 45.28  than 30 days and which prevents the person from obtaining or 
 45.29  retaining employment; 
 45.30     (7) a person who is unable to obtain or retain employment 
 45.31  because advanced age significantly affects the person's ability 
 45.32  to seek or engage in substantial work; 
 45.33     (8) a person who has been assessed by a vocational 
 45.34  specialist and, in consultation with the county agency, has been 
 45.35  determined to be unemployable for purposes of this clause; a 
 45.36  person is considered employable if there exist positions of 
 46.1   employment in the local labor market, regardless of the current 
 46.2   availability of openings for those positions, that the person is 
 46.3   capable of performing.  The person's eligibility under this 
 46.4   category must be reassessed at least annually.  The county 
 46.5   agency must provide notice to the person not later than 30 days 
 46.6   before annual eligibility under this item ends, informing the 
 46.7   person of the date annual eligibility will end and the need for 
 46.8   vocational assessment if the person wishes to continue 
 46.9   eligibility under this clause.  For purposes of establishing 
 46.10  eligibility under this clause, it is the applicant's or 
 46.11  recipient's duty to obtain any needed vocational assessment; 
 46.12     (9) a person who is determined by the county agency, 
 46.13  according to permanent rules adopted by the commissioner, to be 
 46.14  learning disabled, provided that if a rehabilitation plan for 
 46.15  the person is developed or approved by the county agency, the 
 46.16  person is following the plan; 
 46.17     (10) a child under the age of 18 who is not living with a 
 46.18  parent, stepparent, or legal custodian, and only if:  the child 
 46.19  is legally emancipated or living with an adult with the consent 
 46.20  of an agency acting as a legal custodian; the child is at least 
 46.21  16 years of age and the general assistance grant is approved by 
 46.22  the director of the county agency or a designated representative 
 46.23  as a component of a social services case plan for the child; or 
 46.24  the child is living with an adult with the consent of the 
 46.25  child's legal custodian and the county agency.  For purposes of 
 46.26  this clause, "legally emancipated" means a person under the age 
 46.27  of 18 years who:  (i) has been married; (ii) is on active duty 
 46.28  in the uniformed services of the United States; (iii) has been 
 46.29  emancipated by a court of competent jurisdiction; or (iv) is 
 46.30  otherwise considered emancipated under Minnesota law, and for 
 46.31  whom county social services has not determined that a social 
 46.32  services case plan is necessary, for reasons other than the 
 46.33  child has failed or refuses to cooperate with the county agency 
 46.34  in developing the plan; 
 46.35     (11) a person who is eligible for displaced homemaker 
 46.36  services, programs, or assistance under section 268.96, but only 
 47.1   if that person is enrolled as a full-time student; 
 47.2      (12) a person who lives more than four hours round-trip 
 47.3   traveling time from any potential suitable employment; 
 47.4      (13) (12) a person who is involved with protective or 
 47.5   court-ordered services that prevent the applicant or recipient 
 47.6   from working at least four hours per day; 
 47.7      (14) (13) a person over age 18 whose primary language is 
 47.8   not English and who is attending high school at least half time; 
 47.9   or 
 47.10     (15) (14) a person whose alcohol and drug addiction is a 
 47.11  material factor that contributes to the person's disability; 
 47.12  applicants who assert this clause as a basis for eligibility 
 47.13  must be assessed by the county agency to determine if they are 
 47.14  amenable to treatment; if the applicant is determined to be not 
 47.15  amenable to treatment, but is otherwise eligible for benefits, 
 47.16  then general assistance must be paid in vendor form, for the 
 47.17  individual's shelter costs up to the limit of the grant amount, 
 47.18  with the residual, if any, paid according to section 256D.09, 
 47.19  subdivision 2a; if the applicant is determined to be amenable to 
 47.20  treatment, then in order to receive benefits, the applicant must 
 47.21  be in a treatment program or on a waiting list and the benefits 
 47.22  must be paid in vendor form, for the individual's shelter costs, 
 47.23  up to the limit of the grant amount, with the residual, if any, 
 47.24  paid according to section 256D.09, subdivision 2a. 
 47.25     (b) As a condition of eligibility under paragraph (a), 
 47.26  clauses (1), (3), (5), (8), and (9), the recipient must complete 
 47.27  an interim assistance agreement and must apply for other 
 47.28  maintenance benefits as specified in section 256D.06, 
 47.29  subdivision 5, and must comply with efforts to determine the 
 47.30  recipient's eligibility for those other maintenance benefits.  
 47.31     (c) The burden of providing documentation for a county 
 47.32  agency to use to verify eligibility for general assistance or 
 47.33  for exemption from the food stamp employment and training 
 47.34  program is upon the applicant or recipient.  The county agency 
 47.35  shall use documents already in its possession to verify 
 47.36  eligibility, and shall help the applicant or recipient obtain 
 48.1   other existing verification necessary to determine eligibility 
 48.2   which the applicant or recipient does not have and is unable to 
 48.3   obtain. 
 48.4      Sec. 3.  Minnesota Statutes 2002, section 256J.49, 
 48.5   subdivision 13, is amended to read: 
 48.6      Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
 48.7   activity in a participant's approved employment plan that is 
 48.8   tied to the participant's employment goal.  For purposes of the 
 48.9   MFIP program, any activity that is included in a participant's 
 48.10  approved employment plan meets the definition of work activity 
 48.11  as counted under the federal participation standards.  Work 
 48.12  activity includes, but is not limited to: 
 48.13     (1) unsubsidized employment; 
 48.14     (2) subsidized private sector or public sector employment, 
 48.15  including grant diversion as specified in section 256J.69; 
 48.16     (3) work experience, including CWEP as specified in section 
 48.17  256J.67, and including work associated with the refurbishing of 
 48.18  publicly assisted housing if sufficient private sector 
 48.19  employment is not available; 
 48.20     (4) on-the-job training as specified in section 256J.66; 
 48.21     (5) job search, either supervised or unsupervised; 
 48.22     (6) job readiness assistance; 
 48.23     (7) job clubs, including job search workshops; 
 48.24     (8) job placement; 
 48.25     (9) job development; 
 48.26     (10) job-related counseling; 
 48.27     (11) job coaching; 
 48.28     (12) job retention services; 
 48.29     (13) job-specific training or education; 
 48.30     (14) job skills training directly related to employment; 
 48.31     (15) the self-employment investment demonstration (SEID), 
 48.32  as specified in section 256J.65; 
 48.33     (16) preemployment activities, based on availability and 
 48.34  resources, such as volunteer work, literacy programs and related 
 48.35  activities, citizenship classes, English as a second language 
 48.36  (ESL) classes as limited by the provisions of section 256J.52, 
 49.1   subdivisions 3, paragraph (d), and 5, paragraph (c), or 
 49.2   participation in dislocated worker services, chemical dependency 
 49.3   treatment, mental health services, peer group networks, 
 49.4   displaced homemaker programs, strength-based resiliency 
 49.5   training, parenting education, or other programs designed to 
 49.6   help families reach their employment goals and enhance their 
 49.7   ability to care for their children; 
 49.8      (17) community service programs; 
 49.9      (18) vocational educational training or educational 
 49.10  programs that can reasonably be expected to lead to employment, 
 49.11  as limited by the provisions of section 256J.53; 
 49.12     (19) apprenticeships; 
 49.13     (20) satisfactory attendance in general educational 
 49.14  development diploma classes or an adult diploma program; 
 49.15     (21) satisfactory attendance at secondary school, if the 
 49.16  participant has not received a high school diploma; 
 49.17     (22) adult basic education classes; 
 49.18     (23) internships; 
 49.19     (24) bilingual employment and training services; 
 49.20     (25) providing child care services to a participant who is 
 49.21  working in a community service program; and 
 49.22     (26) activities included in an alternative employment plan 
 49.23  that is developed under section 256J.52, subdivision 6. 
 49.24     Sec. 4.  Minnesota Statutes 2002, section 268.0111, 
 49.25  subdivision 4, is amended to read: 
 49.26     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICES.] "Employment 
 49.27  and training services" means programs, activities, and services 
 49.28  related to job training, job placement, and job creation 
 49.29  including job service programs, Job Training Partnership Act 
 49.30  programs, wage subsidies, job search, counseling, case 
 49.31  management, community work experience programs, displaced 
 49.32  homemaker programs, disadvantaged job training programs, grant 
 49.33  diversion, youth employment programs, conservation corps, 
 49.34  apprenticeship programs, community development corporations, 
 49.35  economic development programs, and opportunities 
 49.36  industrialization centers. 
 50.1      Sec. 5.  Minnesota Statutes 2002, section 268.665, 
 50.2   subdivision 2, is amended to read: 
 50.3      Subd. 2.  [MEMBERSHIP.] The governor's workforce 
 50.4   development council is composed of 33 members appointed by the 
 50.5   governor.  The members may be removed pursuant to section 
 50.6   15.059.  In selecting the representatives of the council, the 
 50.7   governor shall ensure that 50 percent of the members come from 
 50.8   nominations provided by local workforce councils.  Local 
 50.9   education representatives shall come from nominations provided 
 50.10  by local education to employment partnerships.  The 33 members 
 50.11  shall represent the following sectors:  
 50.12     (a) State agencies:  the following individuals shall serve 
 50.13  on the council:  
 50.14     (1) commissioner of the Minnesota department of economic 
 50.15  security; 
 50.16     (2) commissioner of the Minnesota department of children, 
 50.17  families, and learning; 
 50.18     (3) commissioner of the Minnesota department of human 
 50.19  services; and 
 50.20     (4) commissioner of the Minnesota department of trade and 
 50.21  economic development. 
 50.22     (b) Business and industry:  six individuals shall represent 
 50.23  the business and industry sectors of Minnesota. 
 50.24     (c) Organized labor:  six individuals shall represent labor 
 50.25  organizations of Minnesota. 
 50.26     (d) Community-based organizations:  four individuals shall 
 50.27  represent community-based organizations of Minnesota.  
 50.28  Community-based organizations are defined by the Job Training 
 50.29  Partnership Act as private nonprofit organizations that are 
 50.30  representative of communities or significant segments of 
 50.31  communities and that provide job training services, agencies 
 50.32  serving youth, agencies serving individuals with disabilities, 
 50.33  agencies serving displaced homemakers, union-related 
 50.34  organizations, and employer-related nonprofit organizations and 
 50.35  organizations serving nonreservation Indians and tribal 
 50.36  governments. 
 51.1      (e) Education:  six individuals shall represent the 
 51.2   education sector of Minnesota as follows:  
 51.3      (1) one individual shall represent local public secondary 
 51.4   education; 
 51.5      (2) one individual shall have expertise in design and 
 51.6   implementation of school-based service-learning; 
 51.7      (3) one individual shall represent post-secondary 
 51.8   education; 
 51.9      (4) one individual shall represent secondary/post-secondary 
 51.10  vocational institutions; 
 51.11     (5) the chancellor of the board of trustees of the 
 51.12  Minnesota state colleges and universities; and 
 51.13     (6) one individual shall have expertise in agricultural 
 51.14  education. 
 51.15     (f) Other:  two individuals shall represent other 
 51.16  constituencies including: 
 51.17     (1) units of local government; and 
 51.18     (2) applicable state or local programs. 
 51.19     The speaker and the minority leader of the house of 
 51.20  representatives shall each appoint a representative to serve as 
 51.21  an ex officio member of the council.  The majority and minority 
 51.22  leaders of the senate shall each appoint a senator to serve as 
 51.23  an ex officio member of the council.  After January 1, 1997, the 
 51.24  Minnesota director of the corporation for national service shall 
 51.25  also serve as an ex officio member.  
 51.26     (g) Appointment:  each member shall be appointed for a term 
 51.27  of three years from the first day of January or July immediately 
 51.28  following their appointment.  Elected officials shall forfeit 
 51.29  their appointment if they cease to serve in elected office.  
 51.30     (h) Members of the council are compensated as provided in 
 51.31  section 15.059, subdivision 3. 
 51.32     Sec. 6.  [REPEALER.] 
 51.33     Minnesota Statutes 2002, section 268.96, is repealed.