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HF 797

1st Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:37pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to work force development; appropriating money for higher education;
1.3establishing the Minnesota GI Bill program; amending certain Minnesota Office
1.4of Higher Education provisions, establishing new grant and loan repayment
1.5programs; amending higher education programs; amending certain grant
1.6programs; amending certain higher education provisions; eliminating obsolete
1.7references, making technical changes; authorizing control of certain decreasing
1.8students' share of attendance; increasing revenue bond limits; authorizing control
1.9of certain deposits; authorizing lease agreements; authorizing interest rate swap;
1.10providing for the Textbook Disclosure, Pricing and Access Act; amending certain
1.11private postsecondary institution provisions; appropriating money for jobs and
1.12economic development; amending certain Department of Employment and
1.13Economic Development and the Department of Labor and Industry programs and
1.14creating new programs and grants; establishing the Packinghouse Workers Bill
1.15of Rights; providing for civil actions; providing civil penalties; establishing
1.16criminal penalties; requiring reports; authorizing the increase of certain fees;
1.17requiring assignment of certain inspectors to certain locations; regulating licenses
1.18and wages; appropriating money for Iron Range Resources and Rehabilitation
1.19Board fund; making certain policy changes related to Iron Range Resources
1.20and Rehabilitation Board;amending Minnesota Statutes 2006, sections 13.322,
1.21subdivision 3; 16B.70, by adding a subdivision; 41D.01, subdivision 1; 116J.401,
1.22by adding a subdivision; 116J.551, subdivision 1; 116J.554, subdivision 2;
1.23116J.555, subdivision 1; 116J.575, subdivisions 1, 1a; 116J.966, subdivision 1;
1.24116L.01, by adding a subdivision; 116L.04, subdivision 1a; 116L.17, subdivision
1.251; 116L.20, subdivision 1; 116M.18, subdivision 6a; 135A.031, subdivision
1.267; 135A.053, subdivision 2; 135A.14, subdivision 1; 135A.51, subdivision 2;
1.27135A.52, subdivisions 1, 2; 136A.01, subdivision 2; 136A.031, subdivision
1.285; 136A.0411; 136A.08, subdivision 7; 136A.101, subdivision 4; 136A.121,
1.29subdivision 5; 136A.125, subdivision 2; 136A.15, subdivisions 1, 6; 136A.16,
1.30subdivisions 1, 2, 5, 8, 9, 10; 136A.17, subdivision 1; 136A.1701, subdivisions
1.311, 2, 5; 136A.233, subdivision 3; 136A.29, subdivision 9; 136A.61; 136A.62,
1.32subdivision 3; 136A.63; 136A.64; 136A.65; 136A.653; 136A.657; 136A.66;
1.33136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2, 3, 6;
1.34136F.02, subdivision 1; 136F.42, subdivision 1; 136F.71, subdivision 2, by
1.35adding a subdivision; 136G.11, subdivision 5; 141.21, subdivisions 1a, 5; 141.25,
1.36subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2;
1.37141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 141.35; 177.27,
1.38subdivisions 1, 4, 5, 8, 9, 10, by adding a subdivision; 177.28, subdivision 1;
1.39177.30; 177.43, subdivisions 3, 4, 6, by adding a subdivision; 178.01; 178.02;
2.1178.03, subdivision 3; 178.041, subdivision 1; 181.78, by adding a subdivision;
2.2181.932, subdivision 1; 181.935; 182.65, subdivision 2; 268.085, subdivision
2.33; 268.196, by adding a subdivision; 268A.01, subdivision 13, by adding a
2.4subdivision; 268A.085, subdivision 1; 268A.15, by adding a subdivision;
2.5298.22, subdivision 2; 298.227; 325E.37, subdivision 6; 326.01, subdivision 6g;
2.6326.241, subdivisions 1, 2; 326.242, subdivisions 5, 11, by adding a subdivision;
2.7326.37, subdivision 1; 326.38; 326.40, subdivision 1; 326.401, subdivision 2;
2.8326.405; 326.42, subdivision 1; 326.46; 326.461, by adding a subdivision;
2.9326.47, subdivisions 2, 6; 326.48, subdivisions 1, 2, by adding a subdivision;
2.10326.50; 326.51; 326.52; 341.28, subdivision 2, by adding a subdivision; 341.32,
2.11subdivision 2; 341.321; 462.39, by adding a subdivision; proposing coding
2.12for new law in Minnesota Statutes, chapters 116J; 116O; 135A; 136A; 136F;
2.13141; 177; 179; 181; 181A; 182; 197; 270; 326; repealing Minnesota Statutes
2.142006, sections 16C.18, subdivision 2; 135A.031, subdivisions 1, 2, 3, 4, 5, 6;
2.15135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; 137.0245; 137.0246;
2.16326.01, subdivision 4; 326.242, subdivision 4; 326.45.
2.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.18ARTICLE 1
2.19HIGHER EDUCATION APPROPRIATIONS

2.20
Section 1. SUMMARY OF APPROPRIATIONS.
2.21    The amounts shown in this section summarize direct appropriations, by fund, made
2.22in this article.
2.23
2008
2009
Total
2.24
General
$
1,558,498,000
$
1,641,178,000
$
3,199,676,000
2.25
Health Care Access
2,157,000
2,157,000
4,314,000
2.26
Total
$
1,560,655,000
$
1,643,335,000
$
3,203,990,000

2.27
Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.28    The sums shown in the columns marked "Appropriations" are appropriated to the
2.29agencies and for the purposes specified in this article. The appropriations are from the
2.30general fund, or another named fund, and are available for the fiscal years indicated
2.31for each purpose. The figures "2008" and "2009" used in this article mean that the
2.32appropriations listed under them are available for the fiscal year ending June 30, 2008, or
2.33June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
2.34year 2009. "The biennium" is fiscal years 2008 and 2009.
2.35
APPROPRIATIONS
2.36
Available for the Year
2.37
Ending June 30
2.38
2008
2009

2.39
2.40
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
3.1
Subdivision 1.Total Appropriation
$
194,983,000
$
195,654,000
3.2The amounts that may be spent for each
3.3purpose are specified in the following
3.4subdivisions.
3.5
Subd. 2.Minnesota GI Bill
10,000,000
10,000,000
3.6For grants to eligible veterans or the eligible
3.7spouses and children of veterans as provided
3.8under Minnesota Statutes, section 197.791.
3.9Of this appropriation, $152,000 the first
3.10year and $104,000 the second year are for
3.11the administrative costs of operating this
3.12program. For the 2010-2011 biennium,
3.13the base for this program's administrative
3.14costs must be included within the agency
3.15administration program activity.
3.16
Subd. 3.State Grants
150,154,000
151,124,000
3.17If the appropriation in this subdivision for
3.18either year is insufficient, the appropriation
3.19for the other year is available for it.
3.20For the biennium, the tuition maximum for
3.21students in four-year programs is $9,957 in
3.22each year for students in four-year programs,
3.23and for students in two-year programs, is
3.24$4,717 in the first year and $4,859 in the
3.25second year.
3.26This appropriation sets the living and
3.27miscellaneous expense allowance at $6,241
3.28each year.
3.29
Subd. 4.Safety Officers Survivors
100,000
100,000
3.30This appropriation is to provide educational
3.31benefits under Minnesota Statutes, section
3.32299A.45, to dependent children under age 23
4.1and to the spouses of public safety officers
4.2killed in the line of duty.
4.3If the appropriation in this subdivision for
4.4either year is insufficient, the appropriation
4.5for the other year is available for it.
4.6
Subd. 5.Interstate Tuition Reciprocity
2,000,000
2,000,000
4.7If the appropriation in this subdivision for
4.8either year is insufficient, the appropriation
4.9for the other year is available to meet
4.10reciprocity contract obligations.
4.11
Subd. 6.State Work Study
12,444,000
12,444,000
4.12
Subd. 7.Child Care Grants
4,934,000
4,934,000
4.13
Subd. 8.Minitex
5,881,000
5,881,000
4.14
Subd. 9.MnLINK Gateway
400,000
400,000
4.15
Subd. 10.Learning Network of Minnesota
4,800,000
4,800,000
4.16
Subd. 11.Minnesota College Savings Plan
1,020,000
1,020,000
4.17
Subd. 12.Midwest Higher Education Compact
90,000
90,000
4.18
Subd. 13.Other Small Programs
2,010,000
1,670,000
4.19This appropriation includes funding for
4.20postsecondary service learning, student and
4.21parent information, get ready, outreach, and
4.22intervention for college attendance programs.
4.23$265,000 each year is for grants to increase
4.24campus-community collaboration and service
4.25learning statewide, including operations of
4.26the Minnesota campus compact, grants to
4.27member institutions and grants for member
4.28institution initiatives. For every $1 in state
4.29funding, grant recipients must contribute $2
4.30in campus or community-based support.
4.31$100,000 each year is for a grant to the
4.32Loan Repayment Assistance Program
5.1of Minnesota, Inc. for loan repayment
5.2assistance awards.
5.3$500,000 each year is for the teacher
5.4education and compensation helps (TEACH)
5.5and the Minnesota early childhood teacher
5.6retention programs in Minnesota Statutes,
5.7section 136A.126. This is a onetime
5.8appropriation.
5.9$250,000 in the first year is for a grant to
5.10Augsburg College for the purpose of its
5.11Step UP program to provide educational
5.12opportunities to chemically dependent
5.13students and to work with other public
5.14and private colleges in Minnesota to help
5.15replicate this program. This is a onetime
5.16appropriation.
5.17$50,000 in the first year is for the speech
5.18pathologist loan forgiveness program for
5.19deposit in the account under Minnesota
5.20Statutes, section 136A.1704.
5.21$40,000 in the first year is for a grant to
5.22the Washington Center for Internships and
5.23Academic Seminars for a pilot program
5.24for scholarships for students enrolling in a
5.25Minnesota four-year college or university
5.26beginning in the fall semester of 2007. The
5.27grant is available only with a dollar-for-dollar
5.28match from nonstate sources.
5.29
5.30
5.31
Subd. 14.Access to College and Helping
Individuals Everywhere Value Education and
Rural Pilot Programs
1,000,000
1,000,000
5.32For Access to College and Helping
5.33Individuals Everywhere Value Education
5.34pilot projects that provide distance-learning
5.35opportunities through the Minnesota State
6.1Colleges and Universities for high school
6.2students living in remote and underserved
6.3areas where the school district lacks
6.4the resources to provide academically
6.5challenging educational opportunities,
6.6including Advanced Placement and
6.7International Baccalaureate programs.
6.8Students who successfully complete a course
6.9must receive college credit at no cost to the
6.10student or the participating school district.
6.11The office must report to the committees of
6.12the legislature with responsibility for higher
6.13education finance by January 15, 2009, on the
6.14program outcomes with recommendations on
6.15continuing and expanding the program.
6.16
6.17
Subd. 15.United Family Medicine Residency
Program
360,000
360,000
6.18For a grant to the united family medicine
6.19residency program. This appropriation
6.20must be used to support up to 18 resident
6.21physicians each year in family practice at
6.22united family medicine residency programs
6.23and must prepare doctors to practice family
6.24care medicine in underserved rural and
6.25urban areas of the state. The legislature
6.26intends this program to improve health
6.27care in underserved communities, provide
6.28affordable access to appropriate medical
6.29care, and manage the treatment of patients in
6.30a more cost-effective manner.
6.31
Subd. 16.Agency Administration
2,690,000
2,731,000
6.32Of this appropriation, $39,000 the first
6.33year and $80,000 the second year are for
6.34compensation-related costs associated with
7.1the delivery of the office's services and
7.2programs.
7.3
Subd. 17.Balances Forward
7.4A balance in the first year under this section
7.5does not cancel, but is available for the
7.6second year.
7.7
Subd. 18.Transfers
7.8The Minnesota Office of Higher Education
7.9may transfer unencumbered balances from
7.10the appropriations in subdivisions 2 to 15 to
7.11the state grant appropriation, the safety officer
7.12survivors appropriation, the interstate tuition
7.13reciprocity appropriation, the Minnesota
7.14college savings plan appropriation, the child
7.15care appropriation, and the state work study
7.16appropriation.
7.17
Subd. 19.Reporting
7.18(a) By November 1 and February 15, the
7.19Minnesota Office of Higher Education
7.20must provide updated state grant spending
7.21projections, taking into account the most
7.22current and projected enrollment and tuition
7.23and fee information, economic conditions,
7.24and other relevant factors. Before submitting
7.25state grant spending projections, the office
7.26must meet and consult with representatives of
7.27public and private postsecondary education,
7.28the Department of Finance, the governor's
7.29office, legislative staff, and financial aid
7.30administrators.
7.31(b) The Minnesota Office of Higher
7.32Education shall report to the higher education
7.33divisions of the house and senate finance
7.34committees on participation in postsecondary
8.1education by income, and persistence and
8.2graduation rates of state grant recipients
8.3compared to students who did not receive
8.4state grants. The office is authorized to match
8.5individual student data from the student
8.6record enrollment database with individual
8.7student data from the state grant database on
8.8data elements necessary to perform the study.

8.9
8.10
8.11
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
8.12
Subdivision 1.Total Appropriation
$
668,388,000
$
704,288,000
8.13The amounts that may be spent for each
8.14purpose are specified in the following
8.15subdivisions.
8.16
8.17
Subd. 2.Central Office and Shared Services
Unit
$
40,170,550
$
40,170,550
8.18For the office of the chancellor and the shared
8.19services division.
8.20
Subd. 3.Operations and Maintenance
$
628,217,450
$
664,118,000
8.21(a) This appropriation includes funding
8.22for the board's initiatives on recruiting and
8.23retaining underrepresented students, strategic
8.24educational advancements, STEM initiatives,
8.25and infrastructure and technology, and for
8.26the costs of inflation. This appropriation
8.27also includes funding to reduce the tuition
8.28rate increase to two percent from the
8.29board-approved plan of a four percent annual
8.30increase.
8.31(b) Appropriations for technology and
8.32infrastructure under this subdivision must
8.33not be used to increase permanent positions
8.34in the office of the chancellor or the shared
9.1services office. Any new positions funded
9.2from the technology and infrastructure
9.3appropriation must be at a campus.
9.4(c) $400,000 each year is for
9.5community-based energy development
9.6pilot projects at Mesabi Range Technical
9.7and Community College, the Minnesota
9.8West Community and Technical College,
9.9and Riverland Community College. Each
9.10campus must establish partnerships for
9.11community-based energy development pilot
9.12projects that involve students and faculty. An
9.13allocation for the pilot project is available
9.14to the participating institutions and the
9.15partnerships for the biennium ending June
9.1630, 2009.
9.17(d) $750,000 in the first year is for a modular
9.18clean-room research and training facility
9.19at St. Paul College. This is a onetime
9.20appropriation and is available until expended.
9.21(e) $300,000 the first year is for a grant to
9.22the Range Association of Municipalities
9.23and Schools for a study of student demand
9.24and employer needs for higher education in
9.25the Mesabi Range region of northeastern
9.26Minnesota including the cities of Grand
9.27Rapids through Eveleth to Ely. The
9.28association must coordinate and contract for
9.29a study in cooperation with the Board of
9.30Regents of the University of Minnesota and
9.31the Board of Trustees of the Minnesota State
9.32Colleges and Universities. The governing
9.33boards must advise on which of the identified
9.34needs can be met by University of Minnesota
9.35courses and which can be met by the
10.1Minnesota State Colleges and Universities,
10.2and which degree programs may be offered
10.3jointly. The final report must be submitted to
10.4the committees of the legislature responsible
10.5for higher education finance by January 15,
10.62008, with recommendations and plans for
10.7the region.
10.8(f) $120,000 in each year is for the Cook
10.9County Higher Education Board to provide
10.10educational programs and academic support
10.11services. The base appropriation for this
10.12program is $120,000 in each year of the
10.13biennium ending June 30, 2011.
10.14(g) $2,000,000 the first year and $1,000,000
10.15the second year are for a pilot project with
10.16the Northeast Minnesota Higher Education
10.17District and high schools in its area. Up to
10.18$1,200,000 of the first year appropriation
10.19must be used to purchase equipment that is
10.20necessary to reestablish a technical education
10.21curriculum in the area high schools to
10.22provide the students with the technical
10.23skills necessary for the workforce. Students
10.24from area high schools may also access
10.25the facilities and faculty of the Northeast
10.26Minnesota Higher Education District
10.27for state-of-the-art technical education
10.28opportunities, including MnSCU's 2+2
10.29Pathways initiative. $1,000,000 is added to
10.30the base for this project.
10.31(h) $50,000 in the first year is for St. Paul
10.32College to collaborate with the United Auto
10.33Workers Local 879 to purchase a Ford
10.34Ranger pickup truck to retrofit to run on a
10.35battery-powered motor. This vehicle must
11.1be retrofitted to serve as a prototype that
11.2could be mass-produced at the St. Paul Ford
11.3assembly plant.
11.4(i) $100,000 each year is for a grant to a
11.5Minnesota public postsecondary institution
11.6with a total student enrollment under 7,000
11.7students, that has an existing women's
11.8hockey team competing in Division I in the
11.9Western Collegiate Hockey Association.
11.10The institution may use the grant for
11.11equipment, facility improvements, travel and
11.12compensation for coaches, trainers, and other
11.13necessary personnel.
11.14(j) $450,000 each year is to establish a center
11.15for workforce and economic development
11.16at the Mesabi Range Community and
11.17Technical College and to enhance eFolio
11.18Minnesota. The board, in cooperation with
11.19the Iron Range Resources and Rehabilitation
11.20Board (IRRRB) and the Department of
11.21Employment and Economic Development,
11.22must establish the center to provide on-site
11.23and Internet-based support and technical
11.24assistance to users of the state's eFolio
11.25Minnesota system to promote workforce and
11.26economic development. The center must
11.27assist local economic development agencies
11.28and officials to enable them to access
11.29workforce information generated through the
11.30eFolio Minnesota system. The board must
11.31enhance the eFolio Minnesota system as
11.32necessary to serve these purposes. The center
11.33must report annually to the IRRRB and the
11.34Department of Employment and Economic
11.35Development on the outcomes of the center's
11.36activities.
12.1(k) $1,000,000 the first year is to identify
12.2and improve on practices for selecting and
12.3purchasing textbooks and course materials
12.4that are used by students. The board, in
12.5collaboration with the Minnesota State
12.6University Student Association (MSUSA)
12.7and the Minnesota State College Student
12.8Association (MSCSA) must develop
12.9and implement pilot projects with this
12.10appropriation to address the financial burden
12.11that textbook prices and requirements place
12.12on students. These projects may include
12.13textbook rental programs, cooperative
12.14purchasing efforts, training, and education
12.15and awareness programs for students and
12.16faculty on cost considerations and textbook
12.17options. The student associations must
12.18be fully involved in the development and
12.19implementation of any project using this
12.20appropriation. Each student association
12.21must vote to approve a project before it is
12.22implemented. MSUSA and MSCSA must
12.23report to the committees of the legislature
12.24responsible for higher education finance by
12.25February 15, 2009, on the success of the pilot
12.26projects. This money is available until June
12.2730, 2009.
12.28
Subd. 4.Board Policies
12.29(a) The board must adopt a policy that allows
12.30students to add the cost of textbooks and
12.31required course materials purchased at a
12.32campus bookstore, owned by or operated
12.33under a contract with the campus, to the
12.34existing waivers or payment plans for tuition
12.35and fees.
13.1(b) The board must adopt a policy setting
13.2the maximum number of semester credits
13.3required for a baccalaureate degree at 120
13.4semester credits or the equivalent and the
13.5number of semester credits required for an
13.6associate degree at 60 semester credits or the
13.7equivalent.

13.8
13.9
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
13.10
Subdivision 1.Total Appropriation
$
696,082,000
$
742,143,000
13.11The amounts that may be spent for each
13.12purpose are specified in the following
13.13subdivisions.
13.14
Subd. 2.Operations and Maintenance
667,550,000
667,323,000
13.15(a) This appropriation includes amounts for
13.16the board:
13.17(1) to make investments in the university's
13.18technology and related infrastructure;
13.19(2) to award faculty and staff compensation
13.20increases differentially;
13.21(3) for the board's health workforce and
13.22clinical sciences initiative;
13.23(4) initiatives in science and engineering;
13.24(5) initiatives relating to the environment,
13.25agriculture, and renewable energy; and
13.26(6) for advancing education, including an
13.27Ojibwe Indian language program on the
13.28Duluth campus.
13.29(b) $2,250,000 each year is to establish
13.30banded tuition at the Morris, Crookston, and
13.31Duluth campuses to reduce tuition costs for
13.32students.
14.1(c) $7,000,000 for the biennium is for
14.2scholarships to mitigate the effects of rising
14.3tuition on Minnesota students and families.
14.4This appropriation must be matched with
14.5$2 of nonstate money for each $1 of state
14.6money.
14.7(d) $12,404,000 in the second year is to
14.8reduce the proposed tuition rate increase.
14.9Any of this amount that is not used by the
14.10board to reduce tuition cancels to the general
14.11fund.
14.12(e) $300,000 the first year is for the Center
14.13for Transportation Studies to complete a
14.14study to assess public policy options for
14.15reducing the volume of greenhouse gases
14.16emitted from the transportation sector in
14.17Minnesota. The Center for Transportation
14.18Studies must report its preliminary findings
14.19to the legislature by February 1, 2008, and
14.20must issue its full report by June 1, 2008.
14.21This is a onetime appropriation.
14.22(f) $250,000 each year is to establish an India
14.23Center to improve and promote relations with
14.24India and Southeast Asia. The center must
14.25partner with public and private organizations
14.26in Minnesota to:
14.27(1) foster an understanding of the history,
14.28culture, and values of India;
14.29(2) serve as a resource and catalyst to
14.30promote economic, governmental, and
14.31academic pursuits involving India; and
14.32(3) facilitate educational and business
14.33exchanges and partnerships, collaborative
14.34research, and teaching and training activities
14.35for Minnesota students and teachers.
15.1The Board of Regents may establish an
15.2advisory council to facilitate the mission
15.3and objectives of the India Center and must
15.4report on the progress of the India Center by
15.5February 15, 2008, to the governor and chairs
15.6of the legislative committees responsible for
15.7higher education finance. This is a onetime
15.8appropriation.
15.9(g) $750,000 in the first year is to assist in
15.10the formation of the neighborhood alliance
15.11and for projects identified in section 8. The
15.12alliance, the Board of Regents, and the city of
15.13Minneapolis may cooperate on the projects
15.14and may use a public services of other entities
15.15to complete all or a portion of a project.
15.16(h) $300,000 the first year is to establish a
15.17Dakota language teacher training immersion
15.18program on the Twin Cities campus to
15.19prepare teachers to teach in Dakota language
15.20immersion programs. This is a onetime
15.21appropriation.
15.22(i) $400,000 each year is for the Minnesota
15.23Institute for Sustainable Agriculture to
15.24provide funds for on-station and on-farm
15.25field scale research and outreach to develop
15.26and test the agronomic and economic
15.27requirements of diverse strands of prairie
15.28plants and other perennials for bioenergy
15.29systems including but not limited to
15.30multiple species selection and establishment,
15.31ecological management between planting
15.32and harvest, harvest technologies, financial
15.33and agronomic risk management, farmer
15.34goal setting and adoption of technologies,
15.35integration of wildlife habitat into
16.1management approaches, evaluation of
16.2carbon and other benefits, and robust polices
16.3needed to induce farmer conversion on
16.4marginal lands.
16.5
Subd. 3.Health Care Access Fund
2,157,000
2,157,000
16.6This appropriation is from the health care
16.7access fund and is for primary care education
16.8initiatives.
16.9
Subd. 4.Special Appropriation
65,813,000
65,436,000
16.10
(a) Agriculture and Extension Service
52,625,000
52,275,000
16.11(1) For the Agricultural Experiment
16.12Station, Minnesota Extension Service. This
16.13appropriation includes funding to promote
16.14alternative livestock research and outreach
16.15at the Minnesota Institute for Sustainable
16.16Agriculture, and to promote sustainable and
16.17organic agricultural research and education.
16.18(2) This appropriation includes funding
16.19for research efforts that demonstrate a
16.20renewed emphasis on the needs of the state's
16.21production agriculture community and a
16.22continued focus on renewable energy derived
16.23from Minnesota biomass resources including
16.24agronomic crops, plant and animal wastes,
16.25and native plants or trees, with priority for
16.26extending the Minnesota vegetable growing
16.27season; fertilizer and soil fertility research
16.28and development; treating and curing human
16.29diseases utilizing plant and livestock cells;
16.30using biofuel production coproducts as
16.31feed for livestock; and a rapid agricultural
16.32response fund for current or emerging
16.33animal, plant, and insect problems affecting
16.34production or food safety. In addition, the
17.1appropriation may be used to secure a facility
17.2and retain current faculty levels for poultry
17.3research currently conducted at UMore Park.
17.4(3) In the area of renewable energy, priority
17.5should be given to projects pertaining to:
17.6biofuel and other energy production from
17.7small grains; alternative bioenergy crops and
17.8cropping systems; and growing, harvesting,
17.9and transporting biomass plant material.
17.10(4) This appropriation includes funding for
17.11the college of food, agricultural, and natural
17.12resources sciences to establish and maintain
17.13a statewide organic research and education
17.14initiative to provide leadership for organic
17.15agronomic, horticultural, livestock, and food
17.16systems research, education, and outreach
17.17and for the purchase of state-of-the-art
17.18laboratory, planting, tilling, harvesting, and
17.19processing equipment necessary for this
17.20project.
17.21(5) By February 1, 2009, the Board
17.22of Regents must report to the legislative
17.23committees with responsibility for agriculture
17.24and higher education finance on the research
17.25and initiatives under this paragraph.
17.26(6) The base appropriation is $51,775,000
17.27each year of the biennium ending June 30,
17.282011.
17.29
(b) Health Sciences
5,275,000
5,275,000
17.30$346,000 each year is to support up to 12
17.31resident physicians each year in the St.
17.32Cloud Hospital family practice residency
17.33program. The program must prepare doctors
17.34to practice primary care medicine in the rural
17.35areas of the state. The legislature intends
18.1this program to improve health care in rural
18.2communities, provide affordable access to
18.3appropriate medical care, and manage the
18.4treatment of patients in a more cost-effective
18.5manner.
18.6The remainder of this appropriation is for
18.7the rural physicians associates program, the
18.8Veterinary Diagnostic Laboratory, health
18.9sciences research, dental care, and the
18.10Biomedical Engineering Center.
18.11
(c) Institute of Technology
1,387,000
1,387,000
18.12For the Geological Survey and the talented
18.13youth mathematics program.
18.14
(d) System Specials
6,526,000
6,526,000
18.15For general research, student loans matching
18.16money, industrial relations education,
18.17Natural Resources Research Institute, Center
18.18for Urban and Regional Affairs, and the Bell
18.19Museum of Natural History. $100,000 is
18.20added to the base appropriation for industrial
18.21relations education.
18.22
18.23
Subd. 5.University of Minnesota and Mayo
Foundation Partnership
17,000,000
7,000,000
18.24For the direct and indirect expenses of the
18.25collaborative research partnership between
18.26the University of Minnesota and the Mayo
18.27Foundation for research in biotechnology
18.28and medical genomics. $7,000,000 is added
18.29to the base. This appropriation is available
18.30until expended. An annual report on the
18.31expenditure of these funds must be submitted
18.32to the governor and the chairs of the senate
18.33and house committees responsible for higher
18.34education and economic development by
18.35June 30 of each fiscal year.
19.1
Subd. 6.Academic Health Center
19.2The appropriation for Academic Health
19.3Center funding under Minnesota Statutes,
19.4section 297F.10, is $22,250,000 each year.

19.5
Sec. 6. MAYO CLINIC
19.6
Subdivision 1.Total Appropriation
$
1,202,000
$
1,250,000
19.7The amounts that may be spent for each
19.8purpose are specified in the following
19.9subdivisions.
19.10
Subd. 2.Medical School
591,000
615,000
19.11The state of Minnesota must pay a capitation
19.12each year for each student who is a resident
19.13of Minnesota. The appropriation may be
19.14transferred between years of the biennium to
19.15accommodate enrollment fluctuations. The
19.16funding base for this program is $640,000 in
19.17fiscal year 2010 and $665,000 in fiscal year
19.182011.
19.19It is intended that during the biennium the
19.20Mayo Clinic use the capitation money to
19.21increase the number of doctors practicing in
19.22rural areas in need of doctors.
19.23
19.24
Subd. 3.Family Practice and Graduate
Residency Program
611,000
635,000
19.25The state of Minnesota must pay stipend
19.26support for up to 27 residents each year. The
19.27funding base for this program is $660,000 in
19.28fiscal year 2010 and $686,000 in fiscal year
19.292011.

19.30    Sec. 7. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING.
19.31    Subdivision 1. Membership. A 12-member legislative commission on
19.32postsecondary funding is established consisting of six members of the house of
20.1representatives appointed by the speaker and six members of the senate appointed by
20.2the Subcommittee on Committees of the Committee on Rules and Administration. The
20.3commission may elect a chair and other officers as necessary.
20.4    Subd. 2. Charge. The commission must develop an alternative funding formula
20.5or funding method for postsecondary education that creates incentives for high quality
20.6postsecondary education while maintaining access for students. In developing the formula
20.7or funding method, the commission must consider and address:
20.8    (1) both institutional aid and direct student aid;
20.9    (2) the major cost drivers in postsecondary education, such as inflation and
20.10enrollment;
20.11    (3) federal postsecondary funding and tax incentives for postsecondary education;
20.12and
20.13    (4) funding the formula or funding method within the projected constraints on the
20.14state budget in the coming decade.
20.15    Subd. 3. Report. The commission must report its recommendations to the house
20.16Division on Higher Education and Workforce Development Policy and Finance, and the
20.17senate Higher Education Budget and Policy Division by June 30, 2008.
20.18    Subd. 4. Expiration. The commission expires June 30, 2008.

20.19    Sec. 8. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA
20.20NEIGHBORHOOD ALLIANCE.
20.21    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
20.22have the meanings given them.
20.23    (b) "Alliance" means a representative body of the constituencies, including, but
20.24not limited to, the University of Minnesota, the city of Minneapolis, and the recognized
20.25neighborhood organizations and business associations referenced in the report.
20.26    (c) "Board" means the Board of Regents of the University of Minnesota.
20.27    (d) "Report" means the report and appendix entitled Moving Forward Together:
20.28University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to
20.29the legislature in February 2007.
20.30    (e) "University partnership district" or "district" means the area located within the
20.31city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East
20.32Como, Prospect Park, and University, as they are defined by the city, and the university's
20.33Minneapolis campus.
20.34    (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that
20.35house significant numbers of university students and staff. Transportation and housing
21.1policy analysis and planning must include these areas but they must not be included in
21.2the projects funded through the alliance.
21.3    (g) "University" means the University of Minnesota.
21.4    Subd. 2. Alliance; functions. The alliance may facilitate, initiate, or manage
21.5projects with the board, city, or other public or private entities that are intended to
21.6maintain the university partnership district as a viable place to study, research, and live.
21.7Projects may include, but are not limited to, those outlined in the report, as well as
21.8efforts to involve students in activities to maintain and improve the university partnership
21.9district; cooperative university and university partnership district long-term planning; and
21.10incentives to increase homeownership within the district with particular emphasis on
21.11employees of the university and of other major employers located within the district.
21.12    Subd. 3. Report. The board must report to the legislature by January 15, 2009, on
21.13the expenditure of funds appropriated under section 3.

21.14ARTICLE 2
21.15MINNESOTA GI BILL FOR VETERANS

21.16    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to
21.17read:
21.18    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
21.19for:
21.20    (1) necessary state level administration of financial aid and Minnesota GI Bill
21.21programs, including accounting, auditing, and disbursing state and federal financial aid
21.22funds, and reporting on financial aid programs to the governor and the legislature;
21.23    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
21.24and career schools, under sections 136A.61 to 136A.71 and chapter 141;
21.25    (3) administering the Learning Network of Minnesota;
21.26    (4) negotiating and administering reciprocity agreements;
21.27    (5) publishing and distributing financial aid information and materials, and other
21.28information and materials under section 136A.87, to students and parents;
21.29    (6) collecting and maintaining student enrollment and financial aid data and
21.30reporting data on students and postsecondary institutions to develop and implement a
21.31process to measure and report on the effectiveness of postsecondary institutions;
21.32    (7) administering the federal programs that affect students and institutions on a
21.33statewide basis; and
21.34    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
21.35administer the programs under its supervision.
22.1EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
22.2qualifying coursework taken on or after that date.

22.3    Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.
22.4    Subdivision 1. Policy. It is the policy of the state of Minnesota to provide
22.5postsecondary educational assistance to Minnesota veterans who have provided honorable
22.6service to this state and nation as members of the United States armed forces, whether
22.7in peacetime or in war, and to the spouses and children of Minnesota veterans who have
22.8become severely disabled or deceased during or as the direct result of military service.
22.9    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
22.10    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
22.11specified.
22.12    (c) "Cost of attendance" for both undergraduate and graduate students has the
22.13meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
22.14    (d) "Child" means a natural or adopted child of a person described in subdivision 5,
22.15paragraph (a), clause (1), item (i) or (ii).
22.16    (e) "Director" means the director of the Minnesota Office of Higher Education.
22.17    (f) "Eligible institution" means a postsecondary institution located in this state
22.18that either (1) is operated by this state; or (2) is operated publicly or privately and, as
22.19determined by the office, maintains academic standards substantially equivalent to those
22.20of comparable institutions operated in this state.
22.21    (g) "Eligible student" means a person who:
22.22    (1) if the student is an undergraduate student, has applied for the federal Pell Grant
22.23and the Minnesota State Grant;
22.24    (2) is maintaining satisfactory academic progress as defined by the institution for
22.25students participating in federal Title IV programs;
22.26    (3) is enrolled in an education program leading to a certificate, diploma, or degree
22.27at an eligible institution;
22.28    (4) has applied for educational assistance under the Minnesota GI Bill program prior
22.29to the end of the academic term for which the assistance is being requested.
22.30    (5) is in compliance with child support payment requirements under section
22.31136A.121, subdivision 2, clause (5).
22.32    (h) "Part-time student" means an undergraduate student enrolled for fewer than 12
22.33credits in a semester or the equivalent, or a graduate student as defined by the student's
22.34eligible institution.
23.1    (i) "Program" means the Minnesota GI Bill program established in this section,
23.2unless otherwise specified.
23.3    (j) "Service-connected" has the meaning given by the United States Department
23.4of Veterans Affairs.
23.5    (k) "Veteran" has the meaning given in section 197.447, and also includes a service
23.6member who has fulfilled the requirements for being a veteran but is still serving actively
23.7in the United States armed forces.
23.8    Subd. 3. Program established. There is established a program to provide
23.9postsecondary educational assistance to eligible Minnesota veterans and to the children
23.10and spouses of deceased and severely disabled Minnesota veterans. This program may be
23.11cited as the "Minnesota GI Bill program."
23.12    The director, in consultation with the commissioner and in cooperation with
23.13eligible postsecondary educational institutions, shall expend a biennial appropriation
23.14for the purpose of providing postsecondary educational assistance to eligible persons
23.15in accordance with this program. Each public postsecondary educational institution in
23.16the state must participate in the program and each private postsecondary educational
23.17institution in the state is encouraged to participate in the program. Any participating
23.18private institution may suspend or terminate its participation in the program at the end
23.19of any semester or other academic term.
23.20    Subd. 4. Duties; responsibilities. (a) The director, in consultation with the
23.21commissioner, shall establish policies and procedures including, but not limited to,
23.22procedures for student application record keeping, information sharing, payment to
23.23participating eligible institutions, and other procedures the director considers appropriate
23.24and necessary for effective and efficient administration of the program established in
23.25this section.
23.26    (b) The director, in consultation with the commissioner, may delegate part or
23.27all of the administrative procedures for the program to responsible representatives of
23.28participating eligible institutions.
23.29    Subd. 5. Eligibility. (a) A person is eligible for educational assistance under this
23.30section if:
23.31    (1) the person is:
23.32    (i) a veteran who is serving or has served honorably in any branch or unit of the
23.33United States armed forces at any time on or after August 2, 1990;
23.34    (ii) a nonveteran who has served honorably for a total of 16 years or more
23.35cumulatively as a member of the Minnesota national guard or any other active or reserve
24.1component of the United States armed forces, and any part of that service occurred on
24.2or after August 2, 1990;
24.3    (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as
24.4a direct result of that military service; or
24.5    (iv) the spouse or child of a person described in (i) or (ii) who has a total
24.6and permanent service-connected disability as rated by the United States veterans
24.7administration;
24.8    (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's
24.9state of residence at the time of the person's initial enlistment or any reenlistment in
24.10the United States armed forces;
24.11    (3) the person receiving the educational assistance is a Minnesota resident, as
24.12defined in section 136A.101, subdivision 8; and
24.13    (4) the person receiving the educational assistance is an eligible student.
24.14    (b) A person's eligibility terminates when the person becomes eligible for benefits
24.15under section 135A.52.
24.16    (c) As proof of honorable service and disability or death status for a veteran or
24.17service member, the director, by policy and in consultation with the commissioner, may
24.18require official documentation, including the person's federal form DD-214 or other official
24.19military discharge papers, correspondence from the United States veterans administration,
24.20birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed
24.21affidavits, proof of residency, proof of identity, or any other official documentation the
24.22director considers necessary to determine an applicant's eligibility status.
24.23    (d) The director, in consultation with the commissioner, may deny eligibility or
24.24terminate benefits under this section to any person who has not provided sufficient proof of
24.25eligibility for the program. An applicant may appeal the director's eligibility determination
24.26in writing to the director at any time. The director must rule on any application or appeal
24.27within 30 days of receipt of all documentation that the director requires. Upon receiving
24.28an application with insufficient documentation, the director must notify the applicant
24.29within 30 days of receipt of the application that the application is being suspended pending
24.30receipt by the director of sufficient documentation from the applicant. The decision of the
24.31director regarding an appeal is final; however, an applicant whose appeal of an eligibility
24.32determination has been rejected by the director may submit an additional appeal of that
24.33determination in writing to the director at any time that the applicant is able to provide
24.34substantively significant additional information relating to the person's eligibility for the
24.35program. An approval of an applicant's eligibility by the director following an appeal by
25.1the applicant is not retroactively effective beyond the later of one year previously or the
25.2semester of the person's original application.
25.3    Subd. 6. Benefit amount. (a) On approval by the director of an applicant's
25.4eligibility for the program, the applicant shall be awarded, on a funds-available basis, the
25.5educational assistance under the program for use at any time according to program rules
25.6at any eligible institution. Eligibility for the program terminates upon exhaustion of a
25.7person's benefits as specified in paragraph (c).
25.8    (b) The amount of educational assistance in any semester or term for an eligible
25.9person must be determined by subtracting from the eligible person's cost of attendance
25.10at that eligible public institution, or in the case of an eligible private institution the cost
25.11of attendance for a comparable program at the Twin Cities campus of the University of
25.12Minnesota, the amount the person received or was eligible to receive in that semester
25.13or term from:
25.14    (1) the federal Pell Grant;
25.15    (2) the state grant under section 136A.121; and
25.16    (3) any federal military or veterans educational benefits, including, but not limited
25.17to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
25.18vocational rehabilitation benefits, and any other federal benefits associated with the
25.19person's status as a veteran, except veterans disability payments from the United States
25.20Department of Veterans Affairs.
25.21    (c) The amount of education assistance for any eligible person must not exceed any
25.22of the following amounts:
25.23    (1) $1,250 per semester or term of enrollment, or in the case of a part-time student
25.24$625 per semester or term of enrollment;
25.25    (2) $3,570 per state fiscal year; and
25.26    (3) $10,000 total.
25.27EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
25.28qualifying coursework taken on or after that date.

25.29    Sec. 3. ANNUAL REVIEW AND RECOMMENDATION.
25.30    The commissioner of veterans affairs, in consultation with the director of higher
25.31education, must annually review veterans' participation level in and expenditures for the
25.32Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15
25.33each year, must make recommendations to the chairs of the senate and house committees
25.34having oversight responsibility for veterans affairs regarding adjustment of individual
25.35benefit levels and program funding.

26.1ARTICLE 3
26.2RELATED HIGHER EDUCATION

26.3    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:
26.4    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing
26.5involving the Minnesota Office of Higher Education and other institutions is governed
26.6by sections section 136A.05 and 136A.08, subdivision 8.
26.7    (b) Student financial aid. Data collected and used by the Minnesota Office of
26.8Higher Education on applicants for financial assistance are classified under section
26.9136A.162 .
26.10    (c) Minnesota college savings plan data. Account owner data, account data, and
26.11data on beneficiaries of accounts under the Minnesota college savings plan are classified
26.12under section 136G.05, subdivision 10.
26.13    (d) School financial records. Financial records submitted by schools registering
26.14with the Minnesota Office of Higher Education are classified under section 136A.64.
26.15    (e) Enrollment and financial aid data. Data collected from eligible institutions on
26.16student enrollment and federal and state financial aid are governed by sections 136A.121,
26.17subdivision 18, and 136A.1701, subdivision 11.

26.18    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision
26.19to read:
26.20    Subd. 4. Construction management education surcharge and account. (a)
26.21For nonresidential construction building permits, the surcharge under subdivision 1
26.22is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents,
26.23whichever amount is greater, and designated for and deposited in the construction
26.24management education account.
26.25    (b) The construction management education account is created as an account in the
26.26special revenue fund, administered by the Minnesota Office of Higher Education for
26.27the purpose of enhancing construction management education in public postsecondary
26.28institutions. Funds in the account are appropriated to the director of the Minnesota Office
26.29of Higher Education for the purposes of section 136A.127.

26.30    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:
26.31    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture
26.32Education Leadership Council is established. The council is composed of 16 17 members
26.33as follows:
27.1    (1) the chair of the University of Minnesota agricultural education program;
27.2    (2) a representative of the commissioner of education;
27.3    (3) a representative of the Minnesota State Colleges and Universities recommended
27.4by the chancellor;
27.5    (4) the president and the president-elect of the Minnesota Association of Agriculture
27.6Educators;
27.7    (5) a representative of the Future Farmers of America Foundation;
27.8    (6) a representative of the commissioner of agriculture;
27.9    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the
27.10University of Minnesota;
27.11    (8) a representative of the Minnesota Private Colleges Council;
27.12    (9) two members representing agriculture education and agriculture business
27.13appointed by the governor;
27.14    (9) (10) the chair of the senate Committee on Agriculture, General Legislation
27.15and Veterans Affairs;
27.16    (10) (11) the chair of the house Committee on Agriculture;
27.17    (11) (12) the ranking minority member of the senate Committee on Agriculture,
27.18General Legislation and Veterans Affairs, and a member of the senate Education
27.19Committee designated by the Subcommittee on Committees of the Committee on Rules
27.20and Administration; and
27.21    (12) (13) the ranking minority member of the house Agriculture Committee, and a
27.22member of the house Education Committee designated by the speaker.
27.23    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7),
27.24(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement
27.25member representing the same constituency.

27.26    Sec. 4. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:
27.27    Subd. 7. Reports. Instructional expenditure and enrollment data for each
27.28instructional category shall be submitted by the public postsecondary systems to the
27.29Minnesota Office of Higher Education and the Department of Finance and included in the
27.30biennial budget document. The specific data shall be submitted only after the director of
27.31the Minnesota Office of Higher Education has consulted with a data advisory task force to
27.32determine the need, content, and detail of the information.

27.33    Sec. 5. [135A.043] RESIDENT TUITION.
28.1    (a) A student shall qualify for a resident tuition rate or its equivalent at state
28.2universities and colleges, including the University of Minnesota, if the student meets
28.3all of the following requirements:
28.4    (1) high school attendance within the state for three or more years;
28.5    (2) graduation from a state high school or attainment within the state of the
28.6equivalent of high school graduation; and
28.7    (3) registration as an entering student at, or current enrollment in, a public institution
28.8of higher education.
28.9    (b) This section is in addition to any other statute, rule, or higher education
28.10institution regulation or policy providing eligibility for a resident tuition rate or its
28.11equivalent to a student.
28.12EFFECTIVE DATE.This section is effective the day following final enactment
28.13and applies to tuition for school terms commencing on or after that date.

28.14    Sec. 6. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:
28.15    Subd. 2. Performance and accountability. Higher education systems and
28.16campuses are expected to achieve the objectives in subdivision 1 and will be held
28.17accountable for doing so. The legislature is increasing the flexibility of the systems and
28.18campuses to provide greater responsibility to higher education in deciding how to achieve
28.19statewide objectives, and to decentralize authority so that those decisions can be made
28.20at the level where the education is delivered. To demonstrate their accountability, the
28.21legislature expects each system and campus to measure and report on its performance,
28.22using meaningful indicators that are critical to achieving the objectives in subdivision 1,
28.23as provided in section 135A.033. Nothing in this section precludes a system or campus
28.24from determining its own objectives and performance measures beyond those identified
28.25in this section.

28.26    Sec. 7. [135A.104] STUDENT READINESS FOR COLLEGE.
28.27    To reduce students' and the state of Minnesota's remedial education costs and
28.28encourage students to take an academically sound high school curriculum, the Minnesota
28.29State Colleges and Universities, in cooperation with the commissioner of education, must
28.30offer the assessment of college readiness test to high school students. The test must be
28.31offered to students no later than the 11th grade, allowing the students to makeup any
28.32identified deficiencies while they are still in high school.

28.33    Sec. 8. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:
29.1    Subdivision 1. Definitions. As used in this section, the following terms have the
29.2meanings given them.
29.3    (a) "Administrator" means the administrator of the institution or other person with
29.4general control and supervision of the institution.
29.5    (b) "Public or private postsecondary educational institution" or "institution" means
29.6any of the following institutions having an enrollment of more than 100 persons during
29.7any quarter, term, or semester during the preceding year: (1) the University of Minnesota;
29.8(2) the state universities; (3) the state community colleges; (4) public technical colleges;
29.9(5) private four-year, professional and graduate institutions; (6) private two-year colleges;
29.10and (7) schools subject to either chapter 141, sections 136A.61 136A.615 to 136A.71, or
29.11schools exempt under section 136A.657, and which offer educational programs within the
29.12state for an academic year greater than six consecutive months. An institution's report to
29.13the Minnesota Office of Higher Education or the Minnesota Department of Education may
29.14be considered when determining enrollment.
29.15    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota
29.16high school in 1997 or later, and who is (1) registering for more than one class during
29.17a full academic term, such as a quarter or a semester or (2) housed on campus and is
29.18registering for one or more classes. Student does not include persons enrolled in extension
29.19classes only or correspondence classes only.

29.20    Sec. 9. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:
29.21    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years
29.22of age before the beginning of any term, semester or quarter, in which a course of study
29.23is pursued, or a person receiving a railroad retirement annuity who has reached 60 years
29.24of age before the beginning of the term.

29.25    Sec. 10. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:
29.26    Subdivision 1. Fees and tuition. Except for an administration fee established by the
29.27governing board at a level to recover costs, to be collected only when a course is taken for
29.28credit, a senior citizen who is a legal resident of Minnesota is entitled without payment
29.29of tuition or activity fees to attend courses offered for credit, audit any courses offered
29.30for credit, or enroll in any noncredit courses in any state supported institution of higher
29.31education in Minnesota when space is available after all tuition-paying students have been
29.32accommodated. A senior citizen enrolled under this section must pay any materials,
29.33personal property, or service charges for the course. In addition, a senior citizen who is
29.34enrolled in a course for credit must pay an administrative fee in an amount established
30.1by the governing board of the institution to recover the course costs. There shall be no
30.2administrative fee charges to a senior citizen auditing a course. For the purposes of this
30.3section and section 135A.51, the term "noncredit courses" shall not include those courses
30.4designed and offered specifically and exclusively for senior citizens.
30.5    The provisions of this section and section 135A.51 do not apply to noncredit courses
30.6designed and offered by the University of Minnesota, and the Minnesota State Colleges
30.7and Universities specifically and exclusively for senior citizens. Senior citizens enrolled
30.8under the provisions of this section and section 135A.51 shall not be included by such
30.9institutions in their computation of full-time equivalent students when requesting staff
30.10or appropriations.

30.11    Sec. 11. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:
30.12    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there
30.13shall be no limit to the number of terms, quarters or semesters a senior citizen may attend
30.14courses, nor income limitation imposed in determining eligibility.
30.15    (b) A senior citizen enrolled in a closed enrollment contract training or professional
30.16continuing education program is not eligible for benefits under subdivision 1.

30.17    Sec. 12. [136A.002] DEFINITIONS.
30.18    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
30.19have the meanings given them.
30.20    Subd. 2. Office of Higher Education or office. "Office of Higher Education" or
30.21"office" means the Minnesota Office of Higher Education.

30.22    Sec. 13. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:
30.23    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
30.24for:
30.25    (1) necessary state level administration of financial aid programs, including
30.26accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
30.27financial aid programs to the governor and the legislature;
30.28    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
30.29and career schools, under sections 136A.61 136A.615 to 136A.71 and chapter 141;
30.30    (3) administering the Learning Network of Minnesota;
30.31    (4) negotiating and administering reciprocity agreements;
30.32    (5) publishing and distributing financial aid information and materials, and other
30.33information and materials under section 136A.87, to students and parents;
31.1    (6) collecting and maintaining student enrollment and financial aid data and
31.2reporting data on students and postsecondary institutions to develop and implement a
31.3process to measure and report on the effectiveness of postsecondary institutions;
31.4    (7) administering the federal programs that affect students and institutions on a
31.5statewide basis; and
31.6    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
31.7administer the programs under its supervision.

31.8    Sec. 14. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:
31.9    Subd. 5. Expiration. Notwithstanding section 15.059, subdivision 5, the advisory
31.10groups established in this section do not expire on June 30, 2007.

31.11    Sec. 15. Minnesota Statutes 2006, section 136A.0411, is amended to read:
31.12136A.0411 COLLECTING FEES.
31.13    The office may charge fees for seminars, conferences, workshops, services, and
31.14materials. The office may collect fees for registration and licensure of private institutions
31.15under sections 136A.61 136A.615 to 136A.71 and chapter 141. The money is annually
31.16appropriated to the office.

31.17    Sec. 16. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:
31.18    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually,
31.19before the last day in January, submit a report to the committees in the house of
31.20representatives and the senate with responsibility for higher education finance on:
31.21    (1) participation in the tuition reciprocity program by Minnesota students and
31.22students from other states attending Minnesota postsecondary institutions under a
31.23reciprocity agreement;
31.24    (2) reciprocity and resident tuition rates at each institution; and
31.25    (3) interstate payments and obligations for each state participating in the tuition
31.26reciprocity program in the prior year.; and
31.27    (4) summary statistics on number of graduates by institution, degree granted, and
31.28year of graduation for reciprocity students who attended Minnesota postsecondary
31.29institutions.

31.30    Sec. 17. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:
31.31    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
31.32educational institution located in this state or in a state with which the office has entered
32.1into a higher education reciprocity agreement on state student aid programs that either (1)
32.2is operated by this state or the Board of Regents of the University of Minnesota, or (2) is
32.3operated publicly or privately and, as determined by the office, meets all of the following:
32.4(i) maintains academic standards substantially equivalent to those of comparable
32.5institutions operated in this state; (ii) is licensed or registered as a postsecondary institution
32.6by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal
32.7Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.

32.8    Sec. 18. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
32.9    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
32.10responsibility for covering the recognized cost of attendance by the applicant, the
32.11applicant's family, and the government. The amount of a financial stipend must not
32.12exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
32.13deducting the following:
32.14    (1) the assigned student responsibility of at least 46 45.5 percent of the cost of
32.15attending the institution of the applicant's choosing;
32.16    (2) the assigned family responsibility as defined in section 136A.101; and
32.17    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.
32.18    The minimum financial stipend is $100 per academic year.

32.19    Sec. 19. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:
32.20    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
32.21the applicant:
32.22    (1) is a resident of the state of Minnesota;
32.23    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
32.24disabled as defined in section 125A.02, and who is receiving or will receive care on a
32.25regular basis from a licensed or legal, nonlicensed caregiver;
32.26    (3) is income eligible as determined by the office's policies and rules, but is not a
32.27recipient of assistance from the Minnesota family investment program;
32.28    (4) has not earned a baccalaureate degree and has been enrolled full time less than
32.29eight semesters or the equivalent;
32.30    (5) is pursuing a nonsectarian program or course of study that applies to an
32.31undergraduate degree, diploma, or certificate;
32.32    (6) is enrolled at least half time in an eligible institution; and
32.33    (7) is in good academic standing and making satisfactory academic progress.
33.1    (b) A student who withdraws from enrollment for active military service is entitled
33.2to an additional semester or the equivalent of grant eligibility and will be considered to be
33.3in continuing enrollment status upon return.

33.4    Sec. 20. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS;
33.5MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.
33.6    Subdivision 1. TEACH. The teacher education and compensation helps program
33.7(TEACH) is established to provide tuition scholarships, education incentives, and an early
33.8childhood teacher retention program to provide retention incentives to early care and
33.9education providers. The director shall make a grant with appropriations for this purpose
33.10to a nonprofit organization licensed to administer the TEACH early childhood program.
33.11    Subd. 2. Program components. (a) The nonprofit organization must use the
33.12grant for:
33.13    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally
33.14recognized child development associate credential or college-level courses leading to an
33.15associate's or bachelor's degree in early childhood development and school-age care; and
33.16    (2) education incentives of a minimum of $100 to participants in the tuition
33.17scholarship program if they complete a year of working in the early care and education
33.18field.
33.19    (b) Applicants for the scholarship must be employed by a licensed early childhood
33.20or child care program and working directly with children, a licensed family child care
33.21provider, or an employee in a school-age program exempt from licensing under section
33.22245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in
33.23awarding the tuition scholarships. Scholarship recipients must contribute ten percent of
33.24the total scholarship and must be sponsored by their employers, who must also contribute
33.25ten percent of the total scholarship. Scholarship recipients who are self-employed must
33.26contribute 20 percent of the total scholarship.
33.27    (c) The organization must also use the grant for teacher retention incentives of
33.28$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives
33.29must be employed by a licensed early childhood or child care program and working
33.30directly with children, a licensed family child care provider, or an employee in a
33.31school-age program exempt from licensing under section 245A.03, subdivision 2, clause
33.32(12). Lower wage earners must be given priority for the retention incentives. The amount
33.33of the retention incentive must be based on the applicant's level of education at the time of
33.34application. A provider is eligible for the retention incentive if the provider:
34.1    (1) has worked in the field for at least one year and has been working at the same
34.2location for at least one year at the time of application;
34.3    (2) agrees to remain in the provider's current position for a period of at least one
34.4year; and
34.5    (3) has an associate's or bachelor's degree or a child development associate's degree.
34.6    Subd. 3. Advisory committee. The TEACH early childhood and Minnesota early
34.7childhood teacher retention programs must have an advisory board as prescribed by the
34.8national TEACH organization.

34.9    Sec. 21. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION
34.10PROGRAM.
34.11    Subdivision 1. Construction Management Education Account Advisory
34.12Committee. The director must establish an advisory committee for the construction
34.13management education account. Members of the committee must include: the executive
34.14vice-president of the Minnesota Mechanical Contractors association or designee, a
34.15chapter manager of one of the Minnesota chapters of the National Electrical Contractors
34.16Association or designee, the executive director of the Associated General Contractors of
34.17Minnesota or designee, two members of the nonresidential construction industry, and a
34.18construction management program coordinator or director from an accredited construction
34.19management program in the Minnesota State Colleges and Universities. Members serve
34.20three-year terms. Advisory committee members are reimbursed for expenses related to
34.21committee activities. The director may accept funds from federal, state, or local public
34.22agencies, or from private foundations or individuals for deposit into the construction
34.23management education account under section 16B.70. All money in the account must
34.24be used for the purposes of this section.
34.25    Subd. 2. Grants. Grants from the construction management education account must
34.26be used to maintain and increase the quality and availability of education programs for
34.27the construction industry by awarding grants to accredited construction management
34.28programs in the Minnesota State Colleges and Universities. Grants must be used to
34.29maintain and upgrade facilities and provide greater industry access to modern construction
34.30standards and management practices. In making grants, the director, in consultation with
34.31the committee, must:
34.32    (1) confirm the qualifications of any program applying for a grant;
34.33    (2) affirm applications for American Council for Construction Education
34.34accreditation and, when funds are available, award grants to complete the accreditation
34.35process;
35.1    (3) promote close ties between technical and community colleges and four-year
35.2construction management programs; and
35.3    (4) support the development of new educational programs with specific emphasis on
35.4outreach to the construction industry at large.
35.5    Subd. 3. Grant awards. (a) The committee may award grants to a Minnesota State
35.6Colleges and Universities institution to support construction management education and to
35.7promote outreach and continuing education in the construction industry.
35.8    (b) An eligible institution must provide one of the following:
35.9    (1) a bachelor of science construction management degree accredited by the
35.10American Council for Construction Education;
35.11    (2) a degree with an American Council for Construction Education accredited
35.12option, including, but not limited to, Engineering Technology and Industrial Technology;
35.13    (3) a bachelor of science degree program documenting placement of more than 50
35.14percent of their graduates with Minnesota nonresidential contractors; and
35.15    (4) the development of a construction management curriculum to meet the American
35.16Council for Construction Education criteria.
35.17    (c) Grant awards may be made as follows:
35.18    (1) $3,000 per graduate during the past academic year up to a maximum of $100,000
35.19for institutions qualifying under paragraph (b), clause (1);
35.20    (2) $3,000 per graduate during the past academic year up to a maximum of $100,000
35.21for institutions qualifying under paragraph (b), clause (2);
35.22    (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the
35.23past academic year to a maximum of $20,000 for institutions qualifying under paragraph
35.24(b), clause (3);
35.25    (4) up to $25,000 for the purpose of becoming accredited by the American Council
35.26for Construction Education for two years which may be renewed if the institution is
35.27continuing progress towards accreditation; and
35.28    (5) for faculty recruitment and development in construction management programs,
35.29including support for postgraduate work leading to advanced degrees, visiting lecturer
35.30compensation and expenses, teaching assistant positions, and faculty positions; and
35.31    (6) to support general classroom and laboratory operating expenses.
35.32    Grants may only be awarded from the construction management education account
35.33to the extent that funds are available. No other state funding may be provided for these
35.34grants.
35.35    Subd. 4. Reports. (a) The director must annually report to the committees of the
35.36legislature responsible for higher education finance by January 15. The report must
36.1include the names of the public postsecondary educational institutions receiving grants, the
36.2amount of the grant, the purposes for each grant, the number of students served, and the
36.3number of placements made to the construction industry for the previous academic year.
36.4    (b) After receiving an initial grant, the president of the public postsecondary
36.5educational institution must annually submit a report to the director listing the amount of
36.6all past grants awarded from the construction management education account and the uses
36.7of those funds. The report must be submitted with a request for a new or continuing grant
36.8and at a minimum must include the following:
36.9    (1) the number of graduates placed with the Minnesota contractors during the
36.10previous academic year;
36.11    (2) the expected enrollment in construction management courses in the upcoming
36.12academic year; and
36.13    (3) continuing education and extension courses offered in construction management
36.14during the previous academic year and their enrollments.
36.15    Subd. 5. Administration. Up to $15,000 per year from the construction
36.16management education account may be used for the administration of this program.

36.17    Sec. 22. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:
36.18    Subdivision 1. Scope. For purposes of sections 136A.15 to 136A.1702 136A.1701,
36.19the terms defined in this section have the meanings ascribed to given them.

36.20    Sec. 23. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:
36.21    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary
36.22educational institution that either (1) is operated or regulated by this state, or the Board of
36.23Regents of the University of Minnesota; (2) is operated publicly or privately in another
36.24state, is approved by the United States Secretary of Education, and, as determined by
36.25the office, maintains academic standards substantially equal to those of comparable
36.26institutions operated in this state; (3) is licensed or registered as a postsecondary institution
36.27by the office or another state agency; and (4) by July 1, 2011, is participating in the federal
36.28Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It
36.29also includes any institution chartered in a province.

36.30    Sec. 24. Minnesota Statutes 2006, section 136A.16, subdivision 1, is amended to read:
36.31    Subdivision 1. Designation. Notwithstanding chapter 16C, the Minnesota Office of
36.32Higher Education is designated as the administrative agency for carrying out the purposes
37.1and terms of sections 136A.15 to 136A.1702 136A.1701. The office may establish one
37.2or more loan programs.

37.3    Sec. 25. Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read:
37.4    Subd. 2. Rules. The office shall adopt policies and prescribe appropriate rules to
37.5carry out the purposes of sections 136A.15 to 136A.1702 136A.1701. The policies and
37.6rules except as they relate to loans under section 136A.1701 must be compatible with
37.7the provisions of the National Vocational Student Loan Insurance Act of 1965 and the
37.8provisions of title IV of the Higher Education Act of 1965, and any amendments thereof.

37.9    Sec. 26. Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read:
37.10    Subd. 5. Agencies. The office may contract with guarantee agencies, insurance
37.11agencies, collection agencies, or any other person, to carry out the purposes of sections
37.12136A.15 to 136A.1702 136A.1701.

37.13    Sec. 27. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:
37.14    Subd. 8. Investment. Money made available to the office that is not immediately
37.15needed for the purposes of sections 136A.15 to 136A.1702 136A.1701 may be invested
37.16by the office. The money must be invested in bonds, certificates of indebtedness, and
37.17other fixed income securities, except preferred stocks, which are legal investments for the
37.18permanent school fund. The money may also be invested in prime quality commercial
37.19paper that is eligible for investment in the state employees retirement fund. All interest
37.20and profits from such investments inure to the benefit of the office or may be pledged for
37.21security of bonds issued by the office or its predecessor, the Minnesota Higher Education
37.22Coordinating Board.

37.23    Sec. 28. Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read:
37.24    Subd. 9. Staff. The office may employ the professional and clerical staff the
37.25director deems necessary for the proper administration of the loan programs established
37.26and defined by sections 136A.15 to 136A.1702 136A.1701.

37.27    Sec. 29. Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read:
37.28    Subd. 10. Director. Subject to its directives and review, the office may delegate to
37.29the director the responsibility for issuance of public information concerning provisions of
37.30sections 136A.15 to 136A.1702 136A.1701, for design of loan application forms, and for
37.31prescribing procedures for submission of applications for loans.

38.1    Sec. 30. Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read:
38.2    Subdivision 1. Eligibility. A student is eligible to apply for a loan under sections
38.3136A.15 to 136A.1702 136A.1701 if the office finds that the student is an eligible student
38.4as defined in those sections and is eligible for a loan under federal laws and regulations
38.5governing the federal guaranteed student loan programs.

38.6    Sec. 31. Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to
38.7read:
38.8    Subdivision 1. Establishment of program. The Minnesota Office of Higher
38.9Education may provide for programs of loans which may be made in lieu of or in addition
38.10to loans authorized under sections 136A.15 to 136A.1702 136A.1701 and applicable
38.11provisions of federal law as provided in this section.

38.12    Sec. 32. Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to
38.13read:
38.14    Subd. 2. Purpose of program. The purpose of the loan programs under this section
38.15is to provide financial assistance for the postsecondary education of students who are
38.16eligible students whether or not such students qualify for a loan or loans under other
38.17provisions of sections 136A.15 to 136A.1702 136A.1701.
38.18    Loans granted to students may be used solely for educational purposes.

38.19    Sec. 33. Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to
38.20read:
38.21    Subd. 5. Maximum loans for students. Loans made under this section or sections
38.22136A.15 to 136A.1702 136A.1701 to an individual eligible student for vocational study
38.23may be made for a maximum of three academic years or their equivalent and loans made
38.24to any other individual eligible student may be made for a maximum of eight academic
38.25years or their equivalent.

38.26    Sec. 34. [136A.1704] LOAN FORGIVENESS PROGRAM FOR
38.27SPEECH-LANGUAGE PATHOLOGISTS.
38.28    Subdivision 1. Creation of account. A loan forgiveness program account is
38.29established in the special revenue fund in the state treasury to promote the recruitment and
38.30retention of licensed speech-language pathologists to work with students with speech or
38.31hearing disorders. Money appropriated to this account does not cancel but is available
39.1until expended. Money in the account is appropriated to the director of the Minnesota
39.2Office of Higher Education for the purpose of this section.
39.3    Subd. 2. Eligibility for loan forgiveness. A student loan administered by the
39.4Minnesota Office of Higher Education under section 136A.16, subdivision 1, may be
39.5forgiven if the recipient graduates from a postsecondary institution with a degree in
39.6speech-language pathology, becomes licensed to work with students with speech and
39.7hearing disorders as defined in Minnesota Rules, part 3525.1343, and is employed as a
39.8speech-language pathologist with primary responsibilities to work with students who are
39.9diagnosed with speech or hearing disorders.
39.10    Subd. 3. Loan forgiveness. (a) To the extent of available appropriations, one-fourth
39.11of the principal of the outstanding loan amount shall be forgiven for each year of eligible
39.12employment or a pro rata amount for eligible employment during part of a school year,
39.13part-time employment, or other eligible part-time work. Loans for $2,500 or less may be
39.14forgiven at the rate of up to $1,250 per year. Employment with the following Minnesota
39.15schools and programs is eligible for determining loan forgiveness:
39.16    (1) a school or program operated by a school district or a group of school districts;
39.17    (2) a tribal contract school eligible to receive aid according to section 124D.83;
39.18    (3) a charter school;
39.19    (4) a private school;
39.20    (5) a Head Start program;
39.21    (6) an early childhood family education program; or
39.22    (7) a program providing early intervention services to children with disabilities
39.23who have not entered kindergarten.
39.24    (b) If an eligible recipient has an outstanding loan administered by the Minnesota
39.25Office of Higher Education, the duty to make payments of principal and interest may
39.26be deferred during any time period the person is enrolled at least one-half time in an
39.27advanced degree program in a field related to working with students with speech or
39.28hearing disabilities. To defer loan obligations, the person shall provide written notification
39.29to the Minnesota Office of Higher Education.
39.30    (c) The Minnesota Office of Higher Education shall approve the loan forgiveness
39.31and deferral, and develop procedures to administer the program.

39.32    Sec. 35. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:
39.33    Subd. 3. Payments. Work-study payments shall be made to eligible students by
39.34postsecondary institutions as provided in this subdivision.
40.1    (a) Students shall be selected for participation in the program by the postsecondary
40.2institution on the basis of student financial need.
40.3    (b) In selecting students for participation, priority must be given to students enrolled
40.4for at least 12 credits. In each academic year, a student may be awarded work-study
40.5payments for one period of nonenrollment or less than half-time enrollment if the student
40.6will enroll on at least a half-time basis during the following academic term.
40.7    (c) Students will be paid for hours actually worked and the maximum hourly rate
40.8of pay shall not exceed the maximum hourly rate of pay permitted under the federal
40.9college work-study program.
40.10    (d) Minimum pay rates will be determined by an applicable federal or state law.
40.11    (e) The office shall annually establish a minimum percentage rate of student
40.12compensation to be paid by an eligible employer.
40.13    (f) Each postsecondary institution receiving money for state work-study grants
40.14shall make a reasonable effort to place work-study students in employment with eligible
40.15employers outside the institution. However, a public employer other than the institution
40.16may not terminate, lay off, or reduce the working hours of a permanent employee for the
40.17purpose of hiring a work-study student, or replace a permanent employee who is on layoff
40.18from the same or substantially the same job by hiring a work-study student.
40.19    (g) The percent of the institution's work-study allocation provided to graduate
40.20students shall not exceed the percent of graduate student enrollment at the participating
40.21institution.
40.22    (h) An institution may use up to 30 percent of its allocation for student internships
40.23with private, for-profit employers.

40.24    Sec. 36. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:
40.25    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered
40.26to issue revenue bonds whose aggregate principal amount at any time shall not exceed
40.27$800,000,000 $950,000,000 and to issue notes, bond anticipation notes, and revenue
40.28refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42,
40.29to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling,
40.30renovating, improving, furnishing, or equipping one or more projects or parts thereof.

40.31    Sec. 37. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:
40.32    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education
40.33shall award grants to foster postsecondary attendance and retention by providing outreach
40.34services to historically underserved students in grades six through 12 and historically
41.1underrepresented college students. Grants must be awarded to programs that provide
41.2precollege services, including, but not limited to:
41.3    (1) academic counseling;
41.4    (2) mentoring;
41.5    (3) fostering and improving parental involvement in planning for and facilitating a
41.6college education;
41.7    (4) services for students with English as a second language;
41.8    (5) academic enrichment activities;
41.9    (6) tutoring;
41.10    (7) career awareness and exploration;
41.11    (8) orientation to college life;
41.12    (9) assistance with high school course selection and information about college
41.13admission requirements; and
41.14    (10) financial aid counseling.
41.15    Grants shall be awarded to postsecondary institutions, professional organizations,
41.16community-based organizations, or others deemed appropriate by the director.
41.17    Grants shall be awarded for one year and may be renewed for a second year with
41.18documentation to the Minnesota Office of Higher Education of successful program
41.19outcomes.

41.20    Sec. 38. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:
41.21    Subd. 2. Eligible students. Eligible students include students in grades six through
41.2212 who meet one or more of the following criteria:
41.23    (1) are counted under section 1124(c) of the Elementary and Secondary Education
41.24Act of 1965 (Title I);
41.25    (2) are eligible for free or reduced-price lunch under the National School Lunch Act;
41.26    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title
41.27I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
41.28    (4) are a member of a group traditionally underrepresented in higher education.
41.29    Eligible undergraduate students include those who met the student eligibility criteria
41.30as 6th through 12th graders.

41.31    Sec. 39. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:
41.32    Subd. 3. Application process. The director of the Minnesota Office of Higher
41.33Education shall develop a grant application process. The director shall attempt to support
42.1projects in a manner that ensures that eligible students throughout the state have access
42.2to precollege program services.
42.3    The grant application must include, at a minimum, the following information:
42.4    (1) a description of the characteristics of the students to be served reflective of the
42.5need for services listed in subdivision 1;
42.6    (2) a description of the services to be provided and a timeline for implementation of
42.7the activities;
42.8    (3) a description of how the services provided will foster postsecondary attendance
42.9and support postsecondary retention;
42.10    (4) a description of how the services will be evaluated to determine whether the
42.11program goals were met; and
42.12    (5) other information as identified by the director.
42.13Grant recipients must specify both program and student outcome goals, and performance
42.14measures for each goal.

42.15    Sec. 40. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:
42.16    Subd. 6. Program evaluation. Each grant recipient must annually submit a report
42.17to the Minnesota Office of Higher Education delineating its program and student outcome
42.18goals, and activities implemented to achieve the stated outcomes. The goals must be
42.19clearly stated and measurable. Grant recipients are required to collect, analyze, and report
42.20on participation and outcome data that enable the office to verify that the program goals
42.21were met. The office shall maintain:
42.22    (1) information about successful precollege program and undergraduate student
42.23retention program activities for dissemination to individuals throughout the state interested
42.24in adopting or replicating successful program practices; and
42.25    (2) data on the success of the funded projects in increasing the high school
42.26graduation and, college participation, and college graduation rates of students served
42.27by the grant recipients. The office may convene meetings of the grant recipients, as
42.28needed, to discuss issues pertaining to the implementation of precollege services and
42.29undergraduate retention programs.

42.30    Sec. 41. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:
42.31    Subdivision 1. Membership. The board consists of 15 17 members appointed by
42.32the governor with the advice and consent of the senate. At least one member of the board
42.33must be a resident of each congressional district. Three members must be students who are
42.34enrolled at least half time in a degree, diploma, or certificate program or have graduated
43.1from an institution governed by the board within one year of the date of appointment. The
43.2student members shall include: one member from a community college, one member from
43.3a state university, and one member from a technical college. Two members must be
43.4members of the AFL-CIO. The remaining members must be appointed to represent the
43.5state at large.

43.6    Sec. 42. [136F.045] UNION MEMBER SELECTION.
43.7    Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting,
43.8screening, and recommending qualified candidates for their members of the board. The
43.9AFL-CIO must develop a statement of selection criteria for board membership and a
43.10process for recommending candidates. Beginning in 2008, and every six years thereafter,
43.11the AFL-CIO must recommend four candidates for the two board positions to the governor
43.12by April 15. The governor must appoint two of the candidates to the board of trustees.

43.13    Sec. 43. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:
43.14    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board,
43.15in consultation with the commissioners of employee relations and finance, may develop
43.16policies to allow system office or campus employees on salaries, as defined in section
43.1743A.17, subdivision 1 , to use negative time reporting in which employees report only that
43.18time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation
43.19with the commissioners of employee relations and finance, shall evaluate the use of
43.20negative time reporting and its potential for use with other state employees.

43.21    Sec. 44. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:
43.22    Subd. 2. Activity funds. All receipts attributable to the state colleges and
43.23universities activity funds and deposited in the state treasury are appropriated to the board
43.24and are not subject to budgetary control as exercised by the commissioner of finance.

43.25    Sec. 45. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision
43.26to read:
43.27    Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall
43.28have authority to control the amount and manner of deposit of all receipts described in
43.29this section in depositories selected by the board. The board's authority shall include
43.30specifying the considerations, financial activities, and conditions required from the
43.31depository, including the requirement of collateral security or a corporate surety bond
43.32as described in section 118A.03. The board may compensate the depository, including
44.1paying a reasonable charge to the depository, maintaining appropriate compensating
44.2balances with the depository, or purchasing non-interest-bearing certificates of deposit
44.3from the depository for performing depository-related services.

44.4    Sec. 46. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:
44.5    Subd. 5. Amount of matching grant. The amount of the matching grant for a
44.6beneficiary equals:
44.7    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum
44.8of the contributions made to the beneficiary's account during the calendar year, not to
44.9exceed $300 $400; and
44.10    (2) if the beneficiary's family income is more than $50,000 but not more than
44.11$80,000, five ten percent of the sum of the contributions made to the beneficiary's account
44.12during the calendar year, not to exceed $300 $400.

44.13    Sec. 47. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE
44.14AT WORTHINGTON; YMCA LEASE AGREEMENT.
44.15    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter
44.16into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on
44.17the Minnesota West Community and Technical College at Worthington campus for the
44.18construction of a YMCA facility. The lease may also include the city of Worthington.
44.19    (b) Siting and design of the facility must be consistent with the college's master
44.20plan and Minnesota State Colleges and Universities' building standards. Minnesota
44.21West Community and Technical College may negotiate for use of the facility for college
44.22purposes. The lease must contain a provision that the lease shall terminate if the improved
44.23property is no longer used for the partial benefit of the students at the Worthington campus.

44.24    Sec. 48. INTEREST RATE SWAP AND OTHER AGREEMENTS;
44.25IMPLEMENTATION PLAN.
44.26    The Minnesota Office of Higher Education must develop a plan for implementing
44.27interest rate exchanges, swaps, or other interest rate protection agreements for its student
44.28loan programs. The plan must be presented in a report to the committees of legislature
44.29responsible for higher education finance by January 15, 2008. The report must address
44.30potential contracting arrangements and options, benefits and risks associated with these
44.31agreements, and the potential impacts on the student loan program, its assets, and its
44.32objectives.

45.1    Sec. 49. REPEALER.
45.2(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6;
45.3135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, are repealed.
45.4(b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, are repealed.

45.5ARTICLE 4
45.6TEXTBOOK PRICING AND ACCESS

45.7    Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.
45.8    Subdivision 1. Short title. This section may be cited as the Textbook Disclosure,
45.9Pricing, and Access Act.
45.10    Subd. 2. Purpose and intent. The purpose of this act is to ensure that every student
45.11in higher education is offered better and more timely access to affordable course materials
45.12by educating and informing faculty, students, administrators, institutions, bookstores, and
45.13publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the
45.14policy of the state of Minnesota that all involved parties must work together to identify
45.15ways to decrease the cost of course materials for students while protecting the academic
45.16freedom of faculty members to provide high-quality course materials for students.
45.17    Subd. 3. Definitions. For the purposes of this section, the following definitions
45.18have the meanings given.
45.19    (1) "Bundled" means any course material packaged together to be sold for one price.
45.20    (2) "Bookstore" means a store that is affiliated with a postsecondary institution or
45.21has a contract with a postsecondary institution to sell course materials to students enrolled
45.22at the postsecondary institution.
45.23    (3) "Course material" means textbooks as defined in section 297A.67, subdivision
45.2413, custom course materials, and instructional materials as defined in section 297A.67,
45.25subdivision 13a, sold to students by a bookstore in a bundled or unbundled form.
45.26    (4) "Custom course materials" means any combination of textbooks, course
45.27materials, or any part thereof that has been customized, produced, and sold by a distributor
45.28or publisher specifically for a specific course, program, or field of study.
45.29    (5) "Distributor" means an independent contractor, including its employees or agents,
45.30that is in the business of selling, distributing, advertising, marketing, or maintaining an
45.31inventory of course materials for a postsecondary institution or bookstore.
45.32    (6) "Postsecondary institution" means a Minnesota institution defined under section
45.33136A.101, subdivision 4.
46.1    (7) "Publisher" means a publishing house, firm, or business, including its employees
46.2or agents, acting with authority of the publisher that publishes, sells, markets, or maintains
46.3an inventory of course materials to a postsecondary institution or bookstore.
46.4    Subd. 4. Publisher disclosures. (a) Beginning January 1, 2008, a publisher or
46.5distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty
46.6member or other individual at a postsecondary institution responsible for selecting course
46.7material within seven days of a request, at least the following:
46.8    (1) the title, edition, author, and International Standard Book Number (ISBN) of all
46.9course material and custom course materials, if applicable;
46.10    (2) the price for the course material;
46.11    (3) whether the required course material is bundled with optional material, whether
46.12it can be unbundled, and the price for each bundled and unbundled component;
46.13    (4) whether the material is available in an alternative format and the cost for the
46.14alternatively formatted material; and
46.15    (5) summary of revisions to requested course material for the previous edition or
46.16release for materials that have been in circulation for five years or less and a detailed
46.17breakdown of revisions must be made available in writing within seven days of the request.
46.18    (b) A publisher or distributor must make all bundled course materials available to
46.19bookstores or postsecondary institutions in an unbundled form or provide written or verbal
46.20notice within seven days of a request under this subdivision if the unbundled materials are
46.21not available.
46.22    (c) A publisher or distributor must post on its Web site, include in its marketing
46.23materials, or disclose in writing when a request is made under this subdivision for the
46.24return policy for course material, including any penalties or conditions for returns.
46.25    (d) Disclosure under this section is not required for mass market and trade books that
46.26are not published, marketed, or sold primarily for use in or by postsecondary institutions.
46.27    Subd. 5. Payment for course material. Each postsecondary institution must adopt
46.28policies that allow students to add the costs of course material purchased at a bookstore
46.29to existing waivers or payment plans for tuition and fees.
46.30    Subd. 6. Notice to purchase. (a) An instructor shall make reasonable efforts to
46.31notify a bookstore of the final order for required and recommended course material
46.32including, but not limited to, alternative formats, previous editions, or custom course
46.33materials at least 30 days prior to the commencement of the term.
46.34    (b) The bookstore must notify students of the following information concerning the
46.35required and recommended course material at least 15 days prior to the commencement of
46.36the term for which the course material is required, including, but not limited to:
47.1    (1) the title, edition, author, and International Standard Book Number (ISBN) of
47.2the course material;
47.3    (2) the price for the course material;
47.4    (3) whether the required course material is bundled with optional material, whether
47.5it can be unbundled, and the price for each bundled and unbundled component; and
47.6    (4) whether the material is available in an alternative format and the cost for the
47.7alternatively formatted material.
47.8    Subd. 7. Educational strategies. (a) During the biennium ending June 30, 2009,
47.9the Minnesota Office of Higher Education shall work with postsecondary institutions
47.10to develop educational materials based upon the findings of the Minnesota Textbook
47.11Advisory Task Force recommendations and other relevant information, convene and
47.12sponsor meetings and workshops, and provide educational materials for faculty, students,
47.13administrators, institutions, bookstores, and publishers in order to educate all interested
47.14parties on strategies for reducing the costs of course materials for students attending
47.15postsecondary institutions.
47.16    (b) The Minnesota Office of Higher Education must develop and maintain a
47.17standardized request form for publisher disclosure under this section with all required
47.18information. The request form must be in an electronic format that can be downloaded
47.19from the office Web site.

47.20ARTICLE 5
47.21PRIVATE INSTITUTIONS

47.22    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:
47.23136A.61 POLICY.
47.24    The legislature has found and hereby declares that the availability of legitimate
47.25courses and programs leading to academic degrees offered by responsible private not for
47.26profit and for profit institutions of postsecondary education and the existence of legitimate
47.27private colleges and universities are in the best interests of the people of this state. The
47.28legislature has found and declares that the state can provide assistance and protection
47.29for persons choosing private institutions and programs, by establishing policies and
47.30procedures to assure the authenticity and legitimacy of private postsecondary education
47.31institutions and programs. The legislature has also found and declares that this same
47.32policy applies to any private and public postsecondary educational institution located in
47.33another state or country which offers or makes available to a Minnesota resident any
47.34course, program or educational activity which does not require the leaving of the state
47.35for its completion.

48.1    Sec. 2. [136A.615] CITATION.
48.2    Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and
48.3Out-of-State Public Postsecondary Education Act."

48.4    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:
48.5    Subd. 3. School. "School" means:
48.6    (1) any individual, partnership, company, firm, society, trust, association,
48.7corporation, or any combination thereof, which (a) (i) is, owns, or operates a private,
48.8nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, for
48.9profit postsecondary education institution; (iii) provides a postsecondary instructional
48.10program or course leading to a degree whether or not for profit; (c) (iv) is, owns, or
48.11operates a private, postsecondary education institution which uses the term "college",
48.12"academy", "institute" or "university" in its name; or (d) operates for profit and provides
48.13programs or courses which are intended to allow an individual to fulfill in part or totally
48.14the requirements necessary to maintain a license to practice an occupation. School shall
48.15also mean
48.16    (2) any public postsecondary educational institution located in another state or
48.17country which offers or makes available to a Minnesota resident any course, program or
48.18educational activity which does not require the leaving of the state for its completion; or
48.19    (3) any individual, entity, or postsecondary institution located in another state
48.20that contracts with any school located within the state of Minnesota for the purpose of
48.21providing educational programs, training programs, or awarding postsecondary credits
48.22or continuing education credits to Minnesota residents that may be applied to a degree
48.23program.

48.24    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:
48.25136A.63 REGISTRATION.
48.26    Subdivision 1. Annual registration. All schools located within Minnesota and
48.27all schools located outside Minnesota which offer degree programs or courses within
48.28Minnesota shall register annually with the office.
48.29    Subd. 2. Sale of an institution. Within 30 days of a change of ownership the school
48.30must submit a registration renewal application, all usual and ordinary information and
48.31materials for an initial registration, and applicable registration fees for a new institution.
48.32For purposes of this subdivision, "change of ownership" means a merger or consolidation
48.33with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of
49.1the assets of a school; the transfer of a controlling interest of at least 51 percent of the
49.2school's stock; or a change in the not-for-profit or for profit status of a school.

49.3    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:
49.4136A.64 INFORMATION REQUIRED FOR REGISTRATION.
49.5    Subdivision 1. Schools to provide information. As a basis for registration, schools
49.6shall provide the office with such information as the office needs to determine the nature
49.7and activities of the school, including but not limited to, requirements for admission,
49.8enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty
49.9employed. The office shall have the authority to verify the accuracy of the information
49.10submitted to it by inspection or any other means it deems necessary. the following which
49.11shall be accompanied by an affidavit attesting to its accuracy and truthfulness:
49.12    (1) articles of incorporation, constitution, bylaws, or other operating documents;
49.13    (2) a duly adopted statement of the school's mission and goals;
49.14    (3) evidence of current school or program licenses granted by departments or
49.15agencies of any state;
49.16    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate
49.17past fiscal year including any management letters provided by the independent auditor
49.18or, if the school is a public institution outside Minnesota, an income statement for the
49.19immediate past fiscal year;
49.20    (5) all current promotional and recruitment materials and advertisements; and
49.21    (6) the current school catalog and, if not contained in the catalog:
49.22    (i) the members of the board of trustees or directors, if any;
49.23    (ii) the current institutional officers;
49.24    (iii) current full-time and part-time faculty with degrees held or applicable
49.25experience;
49.26    (iv) a description of all school facilities;
49.27    (v) a description of all current course offerings;
49.28    (vi) all requirements for satisfactory completion of courses, programs, and degrees;
49.29    (vii) the school's policy about freedom or limitation of expression and inquiry;
49.30    (viii) a current schedule of fees, charges for tuition, required supplies, student
49.31activities, housing, and all other standard charges;
49.32    (ix) the school's policy about refunds and adjustments;
49.33    (x) the school's policy about granting credit for prior education, training, and
49.34experience; and
50.1    (xi) the school's policies about student admission, evaluation, suspension, and
50.2dismissal.
50.3    Subd. 2. Financial records. The office shall not disclose financial records or
50.4accreditation reports provided to it by a school pursuant to this section except for the
50.5purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its
50.6decision to approve or not to approve the granting of degrees or the use of a name by the
50.7school. Section 15.17, subdivision 4, shall not apply to such records.
50.8    Subd. 3. Additional information. If the office is unable to determine the nature
50.9and activities of a school on the basis of the information in subdivision 1, the office shall
50.10notify the school of additional information needed.
50.11    Subd. 4. Verification of information. The office may verify the accuracy of
50.12submitted information by inspection, visitation, or any other means it considers necessary.
50.13    Subd. 5. Public information. All information submitted to the office is public
50.14information except financial and accreditation records and information. The office may
50.15disclose financial records or information to defend its decision to approve or disapprove
50.16granting of degrees or the use of a name or its decisions to revoke the approval at a hearing
50.17under chapter 14 or other legal proceedings.
50.18    Subd. 6. Late registration penalty. Applications for renewal for any registration
50.19received after the deadline date specified in the renewal materials provided by the office
50.20are subject to a late fee equal to 20 percent of the annual registration renewal fee.
50.21    Subd. 7. Out-of-state expenses. A school shall reimburse the office for actual costs
50.22associated with a site evaluation visit outside Minnesota if the visit is necessary under
50.23section 136A.64, subdivision 1 or 3.

50.24    Sec. 6. [136A.645] SCHOOL CLOSURE.
50.25    (a) When a school decides to cease postsecondary education operations, or if its
50.26registration is refused, revoked, or suspended it must cooperate with the office in assisting
50.27students to find alternative means to complete their studies with a minimum of disruption,
50.28and inform the office of the following:
50.29    (1) the planned date for termination of postsecondary education operations;
50.30    (2) the planned date for the transfer of the student records;
50.31    (3) confirmation of the name and address of the organization to receive and hold
50.32the student records; and
50.33    (4) the official at the organization receiving the student records who is designated to
50.34provide official copies of records or transcripts upon request.
51.1    (b) Upon notice from a school of its intention to cease operations, or if a school's
51.2registration is revoked, refused, or suspended, the office shall notify the school of the date
51.3on which it must cease the enrollment of students and all postsecondary educational
51.4operations.

51.5    Sec. 7. [136A.646] ADDITIONAL SECURITY.
51.6    In the event any registered institution is notified by the United States Department
51.7of Education that it has fallen below minimum financial standards and that its continued
51.8participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
51.9Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
51.10Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
51.11institution shall provide a surety bond conditioned upon the faithful performance of all
51.12contracts and agreements with students in a sum equal to the "letter of credit" required by
51.13the United States Department of Education in the Letter of Credit Alternative, but in no
51.14event shall such bond be less than $10,000 and not more than $250,000.

51.15    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read:
51.16136A.65 APPROVAL OF DEGREES AND NAME.
51.17    Subdivision 1. Prohibition. No school subject to registration shall grant a degree
51.18unless such degree is and its underlying curriculum are approved by the office, nor
51.19shall any school subject to registration use the name "college," "academy," "institute" or
51.20"university" in its name without approval by the office.
51.21    Subd. 1a. Accreditation; requirement. A school must not be registered or
51.22authorized to offer any degree at any level unless the school is accredited by an agency
51.23recognized by the United States Department of Education for purposes of eligibility to
51.24participate in Title IV federal financial aid programs. Any registered school undergoing
51.25institutional accreditation shall inform the office of site visits by the accrediting agency
51.26and provide office staff the opportunity to attend the visits, including any exit interviews.
51.27The institution must provide the office with a copy of the final report upon receipt.
51.28    Subd. 2. Procedures. The office shall establish procedures for approval, including
51.29notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not
51.30granted. If a hearing is requested, no disapproval shall take effect until after such hearing.
51.31    Subd. 3. Application. A school subject to registration shall be granted approval to
51.32use the term "college," "academy," "institute" or "university" in its name whether or not it
51.33offers a program leading to a degree, if it was organized, operating and using such term in
52.1its name on or before August 1, 1975, and if it meets the other policies and standards for
52.2approval established by the office.
52.3    Subd. 4. Criteria for approval. (a) A school applying to be registered and to have
52.4its degree or degrees and name approved must substantially meet the following criteria:
52.5    (1) the school has an organizational framework with administrative and teaching
52.6personnel to provide the educational programs offered;
52.7    (2) the school has financial resources sufficient to meet the school's financial
52.8obligations, including refunding tuition and other charges consistent with its stated policy
52.9if the institution is dissolved, or if claims for refunds are made, to provide service to the
52.10students as promised, and to provide educational programs leading to degrees as offered;
52.11    (3) the school operates in conformity with generally accepted budgeting and
52.12accounting procedures, such as the standards adopted by the National Association of
52.13College and University Business Officers, located at 1 Dupont Circle, Washington, D.C.,
52.1420036;
52.15    (4) the school provides an educational program leading to the degree it offers;
52.16    (5) the school provides appropriate and accessible library, laboratory, and other
52.17physical facilities to support the educational program offered;
52.18    (6) the school has a policy on freedom or limitation of expression and inquiry for
52.19faculty and students which is published or available on request;
52.20    (7) the school uses only publications and advertisements which are truthful and do
52.21not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the
52.22school, its personnel, programs, services, or occupational opportunities for its graduates
52.23for promotion and student recruitment;
52.24    (8) the school's compensated recruiting agents who are operating in Minnesota
52.25identify themselves as agents of the school when talking to or corresponding with students
52.26and prospective students; and
52.27    (9) the school provides information to students and prospective students concerning:
52.28    (i) comprehensive and accurate policies relating to student admission, evaluation,
52.29suspension, and dismissal;
52.30    (ii) clear and accurate policies relating to granting credit for prior education, training,
52.31and experience and for courses offered by the school;
52.32    (iii) current schedules of fees, charges for tuition, required supplies, student
52.33activities, housing, and all other standard charges;
52.34    (iv) policies regarding refunds and adjustments for withdrawal or modification
52.35of enrollment status; and
53.1    (v) procedures and standards used for selection of recipients and the terms of
53.2payment and repayment for any financial aid program.
53.3    (b) An application for degree approval must also include:
53.4    (i) title of degree and formal recognition awarded;
53.5    (ii) location where such degree will be offered;
53.6    (iii) proposed implementation date of the degree;
53.7    (iv) admissions requirements for the degree;
53.8    (v) length of the degree;
53.9    (vi) projected enrollment for a period of five years;
53.10    (vii) the curriculum required for the degree, including course syllabi or outlines;
53.11    (viii) statement of academic and administrative mechanisms planned for monitoring
53.12the quality of the proposed degree;
53.13    (ix) statement of satisfaction of professional licensure criteria, if applicable;
53.14    (x) documentation of the availability of clinical, internship, externship, or practicum
53.15sites, if applicable; and
53.16    (xi) statement of how the degree fulfills the institution's mission and goals,
53.17complements existing degrees, and contributes to the school's viability.
53.18    Subd. 5. Requirements for degree approval. For each degree a school offers to a
53.19student, where the student does not leave Minnesota for the major portion of the program
53.20or course leading to the degree, the school must have:
53.21    (1) qualified teaching personnel to provide the educational programs for each degree
53.22for which approval is sought;
53.23    (2) appropriate educational programs leading to each degree for which approval
53.24is sought;
53.25    (3) appropriate and accessible library, laboratory, and other physical facilities to
53.26support the educational program for each degree for which approval is sought; and
53.27    (4) a rationale showing that degree programs are consistent with the school's mission
53.28and goals.
53.29    Subd. 6. Name. A school may use the term "academy" or "institute" in its name
53.30without meeting any additional requirements. A school may use the term "college" in its
53.31name if it offers at least one program leading to an associate degree. A school may use
53.32the term "university" in its name if it offers at least one program leading to a master's
53.33or doctorate degree.
53.34    Subd. 7. Grandfathered names. Names used before August 1, 2007, by a school,
53.35organized, operating, and using the term "academy," "institute," "college," or "university"
54.1in its name on or before August 1, 2007, may continue using such term whether or not it
54.2offers a program leading to a degree.
54.3    Subd. 8. Conditional approval. The office may grant conditional approval for a
54.4degree or use of a term in its name for a period of less than one year if doing so would be
54.5in the best interests of currently enrolled students or prospective students.
54.6    Subd. 9. Disapproval of registration appeal. If a school's degree or use of a term
54.7in its name is disapproved by the office, the school may request a hearing under chapter
54.814. The request must be in writing and made to the office within 30 days of the date
54.9the school is notified of the disapproval.
54.10    (a) The office may refuse to renew, revoke, or suspend registration, approval of
54.11a school's degree, or use of a regulated term in its name by giving written notice and
54.12reasons to the school. The school may request a hearing under chapter 14. If a hearing is
54.13requested, no revocation or suspension shall take effect until after the hearing.
54.14    (b) Reasons for revocation or suspension of registration or approval may be for one
54.15or more of the following reasons:
54.16    (1) violating the provisions of sections 136A.615 to 136A.71;
54.17    (2) providing false, misleading, or incomplete information to the office;
54.18    (3) presenting information about the school which is false, fraudulent, misleading,
54.19deceptive, or inaccurate in a material respect to prospective students; or
54.20    (4) refusing to allow reasonable inspection or to supply reasonable information after
54.21a written request by the office has been received.

54.22    Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read:
54.23136A.653 EXEMPTIONS.
54.24    Subdivision 1. Exemption. A school that is subject to licensing by the office under
54.25chapter 141, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
54.26The determination of the office as to whether a particular school is subject to regulation
54.27under chapter 141 is final for the purposes of this exemption.
54.28    Subd. 2. Educational program; nonprofit organizations. Educational programs
54.29which are sponsored by a bona fide and nonprofit trade, labor, business, professional
54.30or fraternal organization, which programs are conducted solely for that organization's
54.31membership or for the members of the particular industries or professions served by that
54.32organization, and which are not available to the public on a fee basis, are exempted from
54.33the provisions of sections 136A.61 136A.615 to 136A.71.
54.34    Subd. 3. Educational program; business firms. Educational programs which are
54.35sponsored by a business firm for the training of its employees or the employees of other
55.1business firms with which it has contracted to provide educational services at no cost to the
55.2employees are exempted from the provisions of sections 136A.61 136A.615 to 136A.71.
55.3    Subd. 4. Voluntary submission. Any school or program exempted from the
55.4provisions of sections 136A.61 136A.615 to 136A.71 by the provisions of this section
55.5may voluntarily submit to the provisions of those sections.

55.6    Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read:
55.7136A.657 EXEMPTION; RELIGIOUS SCHOOLS.
55.8    Subdivision 1. Exemption. Any school or any department or branch of a school (a)
55.9which is substantially owned, operated or supported by a bona fide church or religious
55.10organization; (b) whose programs are primarily designed for, aimed at and attended by
55.11persons who sincerely hold or seek to learn the particular religious faith or beliefs of that
55.12church or religious organization; and (c) whose programs are primarily intended to prepare
55.13its students to become ministers of, to enter into some other vocation closely related to, or
55.14to conduct their lives in consonance with, the particular faith of that church or religious
55.15organization, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
55.16    Subd. 2. Limitation. This exemption shall not extend to any school or to any
55.17department or branch of a school which through advertisements or solicitations represents
55.18to any students or prospective students that the school, its aims, goals, missions or
55.19purposes or its programs are different from those described in subdivision 1. This
55.20exemption shall not extend to any school which represents to any student or prospective
55.21student that the major purpose of its programs is to prepare the student for a vocation not
55.22closely related to that particular religious faith, or to provide the student with a general
55.23educational program recognized by other schools or the broader educational, business or
55.24social community as being substantially equivalent to the educational programs offered
55.25by schools or departments or branches of schools which are not exempt from sections
55.26136A.61 136A.615 to 136A.71, and rules adopted pursuant thereto.
55.27    Subd. 3. Scope. Nothing in sections 136A.61 136A.615 to 136A.71, or the rules
55.28adopted pursuant thereto, shall be interpreted as permitting the office to determine the
55.29truth or falsity of any particular set of religious beliefs.
55.30    Subd. 4. Statement required; religious nature. Any degree awarded upon
55.31completion of a religiously exempt program shall include descriptive language to make
55.32the religious nature of the award clear.

55.33    Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:
55.34136A.66 LIST.
56.1    The office shall maintain a list of schools registered institutions authorized to grant
56.2degrees and schools authorized to use the name "college," "academy," "institute" or
56.3"university," and shall make such list available to the public.

56.4    Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:
56.5136A.67 UNAUTHORIZED REPRESENTATIONS.
56.6    No school and none of its officials or employees shall advertise or represent in any
56.7manner that such school is approved or accredited by the office or state of Minnesota
56.8except that any A school which is duly registered with the office, or any of its officials or
56.9employees, may represent in advertising and shall disclose in catalogues, applications,
56.10and enrollment materials that the school is registered with the office. by prominently
56.11displaying the following statement: "(Name of school) is registered as a private institution
56.12with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71.
56.13Registration is not an endorsement of the institution. Credits earned at the institution
56.14may not transfer to all other institutions."

56.15    Sec. 13. [136A.675] RISK ANALYSIS.
56.16    The office shall develop a set of financial and programmatic evaluation metrics to
56.17aid in the detection of the failure or potential failure of a school to meet the standards
56.18established under sections 136A.61 to 136A.71. These metrics shall include indicators
56.19of financial stability, changes in the senior management or the financial aid and senior
56.20administrative staff of an institution, changes in enrollment, changes in program offerings,
56.21and changes in faculty staffing patterns. The development of financial standards shall use
56.22industry standards as benchmarks. The development of the nonfinancial standards shall
56.23include a measure of trends and dramatic changes in trends or practice. The agency must
56.24specify the metrics and standards for each area and provide a copy to each registered
56.25institution and post them on the agency Web site. The agency shall use regularly reported
56.26data submitted to the federal government or other regulatory or accreditation agencies
56.27wherever possible. The agency may require more frequent data reporting by an institution
56.28to ascertain whether the standards are being met.

56.29    Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read:
56.30136A.68 RECORDS.
56.31    After August 1, 1975, all schools located in this state must maintain permanent
56.32records of all students enrolled therein at any time. The office may require schools to
56.33provide a plan acceptable to the office for preserving all such records for at least ten years.
57.1The office may require that such plan include the filing of a continuous surety bond or a
57.2deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving
57.3records after such school ceases to exist. A registered school shall maintain a permanent
57.4record for each student for 50 years from the last date of the student's attendance. A
57.5registered school offering distance instruction to a student located in Minnesota shall
57.6maintain a permanent record for each Minnesota student for 50 years from the last date of
57.7the student's attendance. Records include a student's academic transcript, documents, and
57.8files containing student data about academic credits earned, courses completed, grades
57.9awarded, degrees awarded, and periods of attendance. To preserve permanent records, a
57.10school shall submit a plan that meets the following requirements:
57.11    (1) at least one copy of the records must be held in a secure, fireproof depository
57.12or duplicate records must be maintained off site in a secure location and in a manner
57.13approved by the office;
57.14    (2) an appropriate official must be designated to provide a student with copies of
57.15records or a transcript upon request;
57.16    (3) an alternative method approved by the office of complying with clauses (1) and
57.17(2) must be established if the school ceases to exist; and
57.18    (4) if the school has no binding agreement approved by the office for preserving
57.19student records, a continuous surety bond must be filed with the office in an amount not to
57.20exceed $20,000. The bond shall run to the state of Minnesota.

57.21    Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read:
57.22136A.69 FEES.
57.23    Subdivision 1. Registration fees. The office shall collect reasonable registration
57.24fees that are sufficient to recover, but do not exceed, its costs of administering the
57.25registration program. The office shall charge $1,100 for initial registration fees and $950
57.26for annual renewal fees.
57.27    Subd. 2. Degree level addition fee. The office processing fee for adding a degree
57.28level to an existing program is $2,000 per program.
57.29    Subd. 3. Program addition fee. The office processing fee for adding a program
57.30that represents a significant departure in the objectives, content, or method of delivery of
57.31programs that are currently offered by the school is $500 per program.
57.32    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
57.33or outside consultant is necessary to review or evaluate any new or revised program, the
57.34office shall be reimbursed for the expenses incurred related to the review as follows:
58.1    (1) $300 for the team base fee or for a paper review conducted by a consultant if the
58.2office determines that a fact-finding visit is not required;
58.3    (2) $300 for each day or part thereof on site per team member; and
58.4    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
58.5by team members.
58.6    Subd. 5. Modification fee. The fee for modification of any existing program is
58.7$100 and is due if there is:
58.8    (1) an increase or decrease of 25 percent or more from the original date of program
58.9approval, in clock hours, credit hours, or calendar length of an existing program;
58.10    (2) a change in academic measurement from clock hours to credit hours or vice
58.11versa; or
58.12    (3) an addition or alteration of courses that represent a 25 percent change or more in
58.13the objectives, content, or methods of delivery.

58.14    Sec. 16. [136A.705] PENALTY.
58.15    The director may assess fines for violations of a provision of sections 136A.615 to
58.16136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71
58.17shall be a separate violation and fines shall not exceed $500 per day per violation.
58.18Amounts received under this section must be deposited in the special revenue fund and are
58.19appropriated for the purposes in sections 136A.615 to 136A.71.

58.20    Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read:
58.21136A.71 INJUNCTION.
58.22    Upon application of the attorney general the district courts shall have jurisdiction to
58.23enjoin any violations of sections 136A.61 136A.615 to 136A.71.

58.24    Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:
58.25    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or
58.26"office" means the Minnesota Office of Higher Education.

58.27    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:
58.28    Subd. 5. School. "School" means any person, within or outside the state, who
58.29maintains, advertises, administers, solicits for, or conducts any program for profit at
58.30any less than an associate degree level other than baccalaureate or graduate programs,
58.31and is not specifically exempted by sections 141.21 to and is not registered as a private
59.1institution under sections 136A.615 to 136A.71 and is not specifically exempted by
59.2section 141.35 or 141.37.

59.3    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:
59.4    Subdivision 1. Required. A school must not maintain, advertise, solicit for,
59.5administer, or conduct any program in Minnesota without first obtaining a license from
59.6the office.

59.7    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:
59.8    Subd. 5. Bond. (a) No license shall be issued to any school which maintains,
59.9conducts, solicits for, or advertises within the state of Minnesota any program, unless the
59.10applicant files with the office a continuous corporate surety bond written by a company
59.11authorized to do business in Minnesota conditioned upon the faithful performance of all
59.12contracts and agreements with students made by the applicant.
59.13    (b) The amount of the surety bond shall be ten percent of the preceding year's gross
59.14income from student tuition, fees, and other required institutional charges, but in no event
59.15less than $10,000 nor greater than $250,000, except that a school may deposit a greater
59.16amount at its own discretion. A school in each annual application for licensure must
59.17compute the amount of the surety bond and verify that the amount of the surety bond
59.18complies with this subdivision, unless the school maintains a surety bond equal to at least
59.19$250,000. A school that operates at two or more locations may combine gross income
59.20from student tuition, fees, and other required institutional charges for all locations for the
59.21purpose of determining the annual surety bond requirement. The gross tuition and fees
59.22used to determine the amount of the surety bond required for a school having a license for
59.23the sole purpose of recruiting students in Minnesota shall be only that paid to the school
59.24by the students recruited from Minnesota.
59.25    (c) The bond shall run to the state of Minnesota and to any person who may have a
59.26cause of action against the applicant arising at any time after the bond is filed and before it
59.27is canceled for breach of any contract or agreement made by the applicant with any student.
59.28The aggregate liability of the surety for all breaches of the conditions of the bond shall not
59.29exceed the principal sum deposited by the school under paragraph (b). The surety of any
59.30bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved
59.31of liability for any breach of condition occurring after the effective date of cancellation.
59.32    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a
59.33sum equal to the amount of the required surety bond in cash, or securities as may be
60.1legally purchased by savings banks or for trust funds in an aggregate market value equal
60.2to the amount of the required surety bond.
60.3    (e) Failure of a school to post and maintain the required surety bond or deposit under
60.4paragraph (d) may shall result in denial, suspension, or revocation of the school's license.

60.5    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:
60.6    Subd. 7. Minimum standards. A license shall be issued if the office first
60.7determines:
60.8    (1) that the applicant has a sound financial condition with sufficient resources
60.9available to:
60.10    (i) meet the school's financial obligations;
60.11    (ii) refund all tuition and other charges, within a reasonable period of time, in the
60.12event of dissolution of the school or in the event of any justifiable claims for refund against
60.13the school by the student body;
60.14    (iii) provide adequate service to its students and prospective students; and
60.15    (iv) maintain and support the school;
60.16    (2) that the applicant has satisfactory facilities with sufficient tools and equipment
60.17and the necessary number of work stations to prepare adequately the students currently
60.18enrolled, and those proposed to be enrolled;
60.19    (3) that the applicant employs a sufficient number of qualified teaching personnel to
60.20provide the educational programs contemplated;
60.21    (4) that the school has an organizational framework with administrative and
60.22instructional personnel to provide the programs and services it intends to offer;
60.23    (5) that the premises and conditions under which the students work and study are
60.24sanitary, healthful, and safe, according to modern standards;
60.25    (6) that the quality and content of each occupational course or program of study
60.26provides education and adequate preparation to enrolled students for entry level positions
60.27in the occupation for which prepared;
60.28    (7) that the living quarters which are owned, maintained, recommended, or approved
60.29by the applicant for students are sanitary and safe;
60.30    (8) that the contract or enrollment agreement used by the school complies with
60.31the provisions in section 141.265;
60.32    (9) that contracts and agreements do not contain a wage assignment provision or a
60.33confession of judgment clause; and
61.1    (10) that there has been no adjudication of fraud or misrepresentation in any
61.2criminal, civil, or administrative proceeding in any jurisdiction against the school or its
61.3owner, officers, agents, or sponsoring organization.

61.4    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:
61.5    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to
61.6a school, the school shall furnish to the office a catalog, brochure, or electronic display
61.7including:
61.8    (1) identifying data, such as volume number and date of publication;
61.9    (2) name and address of the school and its governing body and officials;
61.10    (3) a calendar of the school showing legal holidays, beginning and ending dates of
61.11each course quarter, term, or semester, and other important dates;
61.12    (4) the school policy and regulations on enrollment including dates and specific
61.13entrance requirements for each program;
61.14    (5) the school policy and regulations about leave, absences, class cuts, make-up
61.15work, tardiness, and interruptions for unsatisfactory attendance;
61.16    (6) the school policy and regulations about standards of progress for the student
61.17including the grading system of the school, the minimum grades considered satisfactory,
61.18conditions for interruption for unsatisfactory grades or progress, a description of any
61.19probationary period allowed by the school, and conditions of reentrance for those
61.20dismissed for unsatisfactory progress;
61.21    (7) the school policy and regulations about student conduct and conditions for
61.22dismissal for unsatisfactory conduct;
61.23    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
61.24activities, laboratory fees, service charges, rentals, deposits, and all other charges;
61.25    (9) the school policy and regulations, including an explanation of section 141.271,
61.26about refunding tuition, fees, and other charges if the student does not enter the program,
61.27withdraws from the program, or the program is discontinued;
61.28    (10) a description of the available facilities and equipment;
61.29    (11) a course outline syllabus for each course offered showing course objectives,
61.30subjects or units in the course, type of work or skill to be learned, and approximate time,
61.31hours, or credits to be spent on each subject or unit;
61.32    (12) the school policy and regulations about granting credit for previous education
61.33and preparation;
61.34    (13) a notice to students relating to the transferability of any credits earned at the
61.35school to other institutions;
62.1    (14) a procedure for investigating and resolving student complaints; and
62.2    (14) (15) the name and address of the Minnesota Office of Higher Education.
62.3    A school that is exclusively a distance education school is exempt from clauses
62.4(3) and (5).

62.5    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:
62.6    Subd. 10. Placement records. (a) Before a license is issued reissued to a school
62.7that offers, advertises or implies a placement service, the school shall file with the office
62.8for the past year and thereafter at reasonable intervals determined by the office, a certified
62.9copy of the school's placement record, containing a list of graduates, a description of their
62.10jobs, names of their employers, and other information as the office may prescribe.
62.11    (b) Each school that offers a placement service shall furnish to each prospective
62.12student, upon request, prior to enrollment, written information concerning the percentage
62.13of the previous year's graduates who were placed in the occupation for which prepared or
62.14in related employment.

62.15    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:
62.16    Subd. 12. Permanent records. A school licensed under this chapter and located
62.17in Minnesota shall maintain a permanent record for each student for 50 years from the
62.18last date of the student's attendance. A school licensed under this chapter and offering
62.19distance instruction to a student located in Minnesota shall maintain a permanent record
62.20for each Minnesota student for 50 years from the last date of the student's attendance.
62.21Records include school transcripts, documents, and files containing student data about
62.22academic credits earned, courses completed, grades awarded, degrees awarded, and
62.23periods of attendance. To preserve permanent records, a school shall submit a plan that
62.24meets the following requirements:
62.25    (1) at least one copy of the records must be held in a secure, fireproof depository;
62.26    (2) an appropriate official must be designated to provide a student with copies of
62.27records or a transcript upon request;
62.28    (3) an alternative method, approved by the office, of complying with clauses (1) and
62.29(2) must be established if the school ceases to exist; and
62.30    (4) a continuous surety bond must be filed with the office in an amount not to exceed
62.31$20,000 if the school has no binding agreement approved by the office, for preserving
62.32student records or a trust must be arranged if the school ceases to exist. The bond shall run
62.33to the state of Minnesota.

63.1    Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:
63.2    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a
63.3renewal licensure application is:
63.4    (1) for a category A school, as determined by the office, the fee is $865 if the school
63.5offers one program or $1,150 if the school offers two or more programs; and
63.6    (2) for a category B or C school, as determined by the office, the fee is $430 if the
63.7school offers one program or $575 if the school offers two or more programs.
63.8    (b) If a license renewal application is not received by the office by the close of
63.9business at least 60 days before the expiration of the current license, a late fee of $100
63.10per business day, not to exceed $3,000, shall be assessed.

63.11    Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:
63.12    Subd. 2. Contract information. A contract or enrollment agreement used by a
63.13school must include at least the following:
63.14    (1) the name and address of the school, clearly stated;
63.15    (2) a clear and conspicuous disclosure that the agreement is a legally binding
63.16instrument upon written acceptance of the student by the school unless canceled under
63.17section 141.271;
63.18    (3) the school's cancellation and refund policy that shall be clearly and conspicuously
63.19entitled "Buyer's Right to Cancel";
63.20    (4) a clear statement of total cost of the program including tuition and all other
63.21charges;
63.22    (5) the name and description of the program, including the number of hours or
63.23credits of classroom instruction, or distance instruction, that shall be included; and
63.24    (6) a clear and conspicuous explanation of the form and means of notice the student
63.25should use in the event the student elects to cancel the contract or sale, the effective
63.26date of cancellation, and the name and address of the seller to which the notice should
63.27be sent or delivered.
63.28The contract or enrollment agreement must not include a wage assignment provision or a
63.29confession of judgment clause.

63.30    Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:
63.31    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place
63.32on the date the letter of cancellation is postmarked or, in the cases where the notice is hand
63.33carried, it shall occur on the date the notice is delivered to the school. If a student has not
63.34attended classes class for a period of 21 consecutive days without contacting the school to
64.1indicate an intent to continue in school or otherwise making arrangements concerning the
64.2absence, the student is considered to have withdrawn from school for all purposes as of
64.3the student's last documented date of attendance.

64.4    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:
64.5    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any
64.6promissory instrument received as payment of tuition or other charge prior to completion
64.7of 50 percent of the program., except that prior to that time, instruments may be transferred
64.8by assignment to purchasers who shall be subject to all defenses available against the
64.9school named as payee.

64.10    Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:
64.11    Subdivision 1. Not to advertise state approval Disclosure required. Schools,
64.12agents of schools, and solicitors may not advertise or represent in writing or orally that
64.13such school is approved or accredited by the state of Minnesota, except that any A
64.14school, agent, or solicitor may advertise represent in advertisements and shall disclose
64.15in catalogues, applications, and enrollment materials that the school and solicitor have
64.16been is duly licensed by the state using by prominently displaying the following language
64.17statement:
64.18"(Name of school) is licensed as a private career school with the Minnesota Office of
64.19Higher Education. Licensure is not an endorsement of the institution. Credits earned at the
64.20institution may not transfer to all other institutions. The educational programs may not
64.21meet the needs of every student or employer."

64.22    Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read:
64.23141.32 PENALTY.
64.24    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure
64.25to comply with this chapter shall be a separate violation. The office shall adopt rules
64.26establishing a list of civil penalties and the fine associated with each violation. Fines for
64.27violations shall not exceed $500 per day per violation. The director may assess fines for
64.28violations of a provision of this chapter. Each day's failure to comply with a provision
64.29of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed
64.30$500 per day per violation. Amounts received under this section must be deposited in the
64.31special revenue fund and are appropriated for the purposes of this chapter.

65.1    Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read:
65.2141.35 EXEMPTIONS.
65.3    Sections 141.21 to 141.35 141.32 shall not apply to the following:
65.4    (1) public postsecondary institutions;
65.5    (2) private postsecondary institutions registered under sections 136A.61 136A.615
65.6to 136A.71 that are nonprofit, or that are for profit and registered under sections 136A.61
65.7to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate
65.8or postbaccalaureate programs;
65.9    (3) schools of nursing accredited by the state Board of Nursing or an equivalent
65.10public board of another state or foreign country;
65.11    (4) private schools complying with the requirements of section 120A.22, subdivision
65.124
;
65.13    (5) courses taught to students in a valid apprenticeship program taught by or
65.14required by a trade union;
65.15    (6) schools exclusively engaged in training physically or mentally disabled persons
65.16for the state of Minnesota;
65.17    (7) schools licensed by boards authorized under Minnesota law to issue licenses;
65.18    (8) schools and educational programs, or training programs, contracted for by
65.19persons, firms, corporations, government agencies, or associations, for the training of their
65.20own employees, for which no fee is charged the employee;
65.21    (9) schools engaged exclusively in the teaching of purely avocational, recreational,
65.22or remedial subjects as determined by the office;
65.23    (10) driver training schools and instructors as defined in section 171.33, subdivisions
65.241 and 2
;
65.25    (11) classes, courses, or programs conducted by a bona fide trade, professional, or
65.26fraternal organization, solely for that organization's membership;
65.27    (12) (11) programs in the fine arts provided by organizations exempt from taxation
65.28under section 290.05 and registered with the attorney general under chapter 309. For
65.29the purposes of this clause, "fine arts" means activities resulting in artistic creation or
65.30artistic performance of works of the imagination which are engaged in for the primary
65.31purpose of creative expression rather than commercial sale or employment. In making
65.32this determination the office may seek the advice and recommendation of the Minnesota
65.33Board of the Arts;
65.34    (13) (12) classes, courses, or programs intended to fulfill the continuing education
65.35requirements for licensure or certification in a profession, that have been approved by
65.36a legislatively or judicially established board or agency responsible for regulating the
66.1practice of the profession, and that are offered exclusively to an individual practicing
66.2the profession;
66.3    (14) (13) classes, courses, or programs intended to prepare students to sit for
66.4undergraduate, graduate, postgraduate, or occupational licensing and occupational
66.5entrance examinations;
66.6    (15) (14) classes, courses, or programs providing 16 or fewer clock hours of
66.7instruction that are not part of the curriculum for an occupation or entry level employment;
66.8    (16) (15) classes, courses, or programs providing instruction in personal
66.9development, modeling, or acting;
66.10    (17) (16) training or instructional programs, in which one instructor teaches an
66.11individual student, that are not part of the curriculum for an occupation or are not intended
66.12to prepare a person for entry level employment; and
66.13    (18) (17) schools with no physical presence in Minnesota, as determined by the
66.14office, engaged exclusively in offering distance instruction that are located in and
66.15regulated by other states or jurisdictions.

66.16    Sec. 33. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
66.17    Subdivision 1. Exemption. Any school or any department or branch of a school:
66.18    (1) which is substantially owned, operated, or supported by a bona fide church
66.19or religious organization;
66.20    (2) whose programs are primarily designed for, aimed at, and attended by persons
66.21who sincerely hold or seek to learn the particular religious faith or beliefs of that church or
66.22religious organization; and
66.23    (3) whose programs are primarily intended to prepare its students to become
66.24ministers of, to enter into some other vocation closely related to, or to conduct their lives
66.25in consonance with the particular faith of that church or religious organization,
66.26is exempt from the provisions of sections 141.21 to 141.32.
66.27    Subd. 2. Limitations. (a) An exemption shall not extend to any school, department
66.28or branch of a school, or program of a school which through advertisements or solicitations
66.29represents to any students or prospective students that the school, its aims, goals, missions,
66.30purposes, or programs are different from those described in subdivision 1.
66.31    (b) An exemption shall not extend to any school which represents to any student or
66.32prospective student that the major purpose of its programs is to:
66.33    (1) prepare the student for a vocation not closely related to that particular religious
66.34faith; or
67.1    (2) provide the student with a general educational program recognized by other
67.2schools or the broader educational, business, or social community as being substantially
67.3equivalent to the educational programs offered by schools or departments or branches of
67.4schools which are not religious in nature and are not exempt from chapter 141 and from
67.5rules adopted pursuant under this chapter.
67.6    Subd. 3. Scope. Nothing in this chapter or the rules adopted under it shall be
67.7interpreted as permitting the office to determine the truth or falsity of any particular set
67.8of religious beliefs.
67.9    Subd. 4. Descriptive language required. Any certificate, diploma, degree, or other
67.10formal recognition awarded upon completion of any religiously exempt program shall
67.11include such descriptive language as to make the religious nature of the award clear.

67.12    Sec. 34. EFFECTIVE DATE; TRANSITION PROCESS.
67.13    Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71,
67.14shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes,
67.15chapter 141, that qualify for private institution registration after July 1, 2007, shall apply
67.16for and complete the process for registration prior to the expiration of their current private
67.17career school license. Schools currently registered as private institutions pursuant to
67.18Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private
67.19career school license after August 1, 2007, shall apply for and complete the process for
67.20licensure prior to the expiration of the current registration, but in any event no later than
67.21December 31, 2007. The office is authorized to extend existing license or registration for a
67.22reasonable period of time to allow for the completion of the new processes when necessary.

67.23ARTICLE 6
67.24JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

67.25
Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
67.26    The amounts shown in this section summarize direct appropriations, by fund, made
67.27in this article.
67.28
2008
2009
Total
67.29
General
$
94,246,000
$
59,895,000
$
154,141,000
67.30
Workforce Development
14,935,000
14,951,000
29,886,000
67.31
Remediation
700,000
700,000
1,400,000
67.32
67.33
State Government Special
Revenue
1,877,000
1,925,000
3,802,000
67.34
Workers' Compensation
23,379,000
23,763,000
47,142,000
67.35
Total
$
135,137,000
$
101,234,000
$
236,371,000

68.1
Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.
68.2    The sums shown in the columns marked "Appropriations" are appropriated to the
68.3agencies and for the purposes specified in this article. The appropriations are from the
68.4general fund, or another named fund, and are available for the fiscal years indicated
68.5for each purpose. The figures "2008" and "2009" used in this article mean that the
68.6appropriations listed under them are available for the fiscal year ending June 30, 2008, or
68.7June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
68.8year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
68.9year ending June 30, 2007, are effective the day following final enactment.
68.10
APPROPRIATIONS
68.11
Available for the Year
68.12
Ending June 30
68.13
2008
2009

68.14
68.15
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
68.16
Subdivision 1.Total Appropriation
$
100,573,000
$
65,825,000
68.17
Appropriations by Fund
68.18
2008
2009
68.19
General
85,703,000
50,955,000
68.20
Remediation
700,000
700,000
68.21
68.22
Workforce
Development
14,170,000
14,170,000
68.23The amounts that may be spent for each
68.24purpose are specified in the following
68.25subdivisions.
68.26
68.27
Subd. 2.Business and Community
Development
48,679,000
14,183,000
68.28
Appropriations by Fund
68.29
General
47,979,000
13,483,000
68.30
Remediation
700,000
700,000
68.31(a)(1) $1,100,000 is for a grant under
68.32Minnesota Statutes, section 116J.421,
68.33to the Rural Policy and Development
68.34Center at St. Peter, Minnesota. The grant
68.35shall be used for research and policy
68.36analysis on emerging economic and social
69.1issues in rural Minnesota, to serve as a
69.2policy resource center for rural Minnesota
69.3communities, to encourage collaboration
69.4across higher education institutions, to
69.5provide interdisciplinary team approaches
69.6to research and problem-solving in rural
69.7communities, and to administer overall
69.8operations of the center.
69.9(2) The grant shall be provided upon the
69.10condition that each state-appropriated
69.11dollar be matched with a nonstate dollar.
69.12Acceptable matching funds are nonstate
69.13contributions that the center has received and
69.14have not been used to match previous state
69.15grants. Any funds not spent the first year are
69.16available the second year.
69.17(b) $200,000 each year is for a grant to
69.18WomenVenture for women's business
69.19development programs.
69.20(c) $500,000 the first year is for a grant to
69.21University Enterprise Laboratories (UEL)
69.22for its direct and indirect expenses to support
69.23efforts to encourage the growth of early-stage
69.24and emerging bioscience companies. UEL
69.25must provide a report by June 30 each year
69.26to the commissioner on the expenditures
69.27until the appropriation is expended. This is a
69.28onetime appropriation and is available until
69.29expended.
69.30(d) $2,000,000 the first year is for grants
69.31under Minnesota Statutes, section 116J.571,
69.32for the redevelopment grant program. This is
69.33a onetime appropriation.
69.34(e) $100,000 each year is to the Public
69.35Facilities Authority for the small community
70.1wastewater treatment program under
70.2Minnesota Statutes, chapter 446A.
70.3(f) $510,000 the first year is for the urban
70.4initiative program under Minnesota Statutes,
70.5chapter 116M, of which, $255,000 is for
70.6a grant to the Metropolitan Economic
70.7Development Association for continuing
70.8minority business development programs
70.9in the metropolitan area. This is a onetime
70.10appropriation.
70.11(g) $85,000 each year is for a grant to the
70.12Minnesota Inventors Congress, of which
70.13$10,000 must be used for youth inventors.
70.14(h) $151,000 the first year is for a grant to the
70.15city of Faribault to design, construct, furnish,
70.16and equip renovations to accommodate
70.17handicapped accessibility at the Paradise
70.18Center for the Arts.
70.19(i) $3,000,000 the first year is for loans
70.20authorized under Minnesota Statutes, section
70.21116J.417. This appropriation is available
70.22until expended.
70.23(j) $1,000,000 each year is to Minnesota
70.24Technology, Inc. for the small business
70.25growth acceleration program established
70.26under Minnesota Statutes, section 116O.115.
70.27This is a onetime appropriation.
70.28(k) $350,000 the first year is for a grant to
70.29the city of Northome for the construction
70.30of a new municipal building to replace the
70.31structures damaged by fire on July 22, 2006.
70.32This appropriation is available when the
70.33commissioner determines that a sufficient
70.34match is available from nonstate sources to
70.35complete the project.
71.1(l) $325,000 each year is for a technology
71.2and commercialization unit established
71.3under article 7, section 32. This is a onetime
71.4appropriation.
71.5(m) $500,000 in the first year is for a
71.6grant to the city of Worthington for an
71.7agricultural-based bioscience training and
71.8testing center. Funds appropriated under this
71.9section must be used to provide a training
71.10and testing facility for incubator firms
71.11developing new agricultural processes and
71.12products. This is a onetime appropriation
71.13and is available until expended.
71.14(n) $2,200,000 in the first year is for a grant
71.15to BioBusiness Alliance of Minnesota for
71.16bioscience business development programs
71.17to promote and position the state as a global
71.18leader in bioscience business activities.
71.19These funds may be used for:
71.20(1) completion and periodic updating of
71.21a statewide bioscience business industry
71.22assessment of business technology
71.23enterprises and Minnesota's competitive
71.24position employing annual updates to federal
71.25industry classification data;
71.26(2) long-term strategic planning that includes
71.27projections of market changes resulting
71.28from developments in biotechnology and the
71.29development of 20-year goals, strategies, and
71.30identified objectives for renewable energy,
71.31medical devices, biopharma, and biologics
71.32business development in Minnesota;
71.33(3) the design and construction of a
71.34Minnesota focused bioscience business
71.35model to test competing strategies and
72.1scenarios, evaluate options, and forecast
72.2outcomes; and
72.3(4) creation of a bioscience business
72.4resources network that includes development
72.5of a statewide bioscience business economic
72.6development framework to encourage
72.7bioscience business development and
72.8encourage spin-off activities, attract
72.9bioscience business location or expansion in
72.10Minnesota, and establish a local capability to
72.11support strategic system level planning for
72.12industry, government, and academia.
72.13This appropriation is available until June 30,
72.142009.
72.15(o) $325,000 is for a grant to the Walker
72.16Area Community Center, Inc., to construct,
72.17furnish, and equip the Walker Area
72.18Community Center. This appropriation is
72.19not available until the commissioner has
72.20determined that an amount sufficient to
72.21complete the project has been committed
72.22from nonstate sources.
72.23(p) $120,000 the first year is for a grant
72.24to the Pine Island Economic Development
72.25Authority for predesign to upgrade and
72.26extend utilities to serve Elk Run Bioscience
72.27Research Park and The Falls - Healthy
72.28Living By Nature, an integrated medicine
72.29facility. This is a onetime appropriation and
72.30is available until expended.
72.31(q) $300,000 the first year is for a grant
72.32to Thomson Township for infrastructure
72.33improvements for the industrial park. This is
72.34a onetime appropriation.
73.1(r) $75,000 the first year for a grant to
73.2Le Sueur County for the cost of cleaning
73.3debris from lakes in Le Sueur County,
73.4caused by the August 24, 2006, tornado in
73.5southern Le Sueur County. This is a onetime
73.6appropriation.
73.7(s) $3,000,000 the second year is for
73.8bioscience business development and
73.9commercialization grants. The commissioner
73.10shall designate an evaluation team to accept
73.11grant applications, review and evaluate
73.12grant proposals, and select up to five grant
73.13proposals to receive funding each year.
73.14The evaluation team shall be comprised
73.15of not more than 12 members including:
73.16the commissioner or the commissioner's
73.17designee; representatives of bioscience
73.18businesses; public and private institutions
73.19of higher education; private investment
73.20companies; a nonprofit entity that qualifies as
73.21a 501(c)6 under the Internal Revenue Code
73.22and is a trade association representing the
73.23life sciences industry; and a bio business
73.24alliance that qualifies as a 501(c)3 under the
73.25Internal Revenue Code. The criteria used
73.26by the evaluation team in evaluating grant
73.27proposals must include, but is not limited
73.28to: the potential to create and sustain jobs
73.29within the state of Minnesota; the potential
73.30for long-term business activity, growth,
73.31and expansion in Minnesota; the level of
73.32technological maturity; the potential to attract
73.33private investment; and the availability and
73.34readiness of markets. The commissioner
73.35must report to the standing committees of
73.36the house of representatives and the senate
74.1having jurisdiction over bioscience and
74.2technology issues by February 1 each year
74.3on the number, type, and amounts of grants
74.4awarded and the activities of the grant
74.5recipients. This is a onetime appropriation
74.6and is available until expended.
74.7(t) $1,500,000 the first year is for the urban
74.8challenge grant program under Minnesota
74.9Statutes, section 116M.18, of which
74.10$1,000,000 is for a grant to the Neighborhood
74.11Development Center for assistance necessary
74.12to retain minority business enterprises
74.13at the Global Market. This is a onetime
74.14appropriation.
74.15(u) $375,000 each year is to develop and
74.16operate a bioscience business marketing
74.17program to market Minneota bioscience
74.18businesses and business opportunities
74.19to other states and other countries. The
74.20bioscience business marketing program must
74.21emphasize bioscience business location and
74.22expansion opportunities in communities
74.23outside of the seven-county metropolitan
74.24area as defined in Minnesota Statutes,
74.25section 473.121, subdivision 2, that have
74.26established collaborative plans among two
74.27or more municipal units for bioscience
74.28business activities, and that are within 15
74.29miles of a four-year, baccalaureate degree
74.30granting institution or a two-year technical
74.31or community college that offers bioscience
74.32curricula. The commissioner must report
74.33to the committees of the senate and house
74.34of representatives having jurisdiction
74.35over bioscience and technology issues by
74.36February 1 of each year on the expenditures
75.1of these funds and the promotional activities
75.2undertaken to market the Minnesota
75.3bioscience industry to persons outside of the
75.4state. This is a onetime appropriation and is
75.5available until expended.
75.6(v) $225,000 each year is for the purposes
75.7of the nanotechnology development fund
75.8(NDF) established in section 12, for grants
75.9to promote increased use of advanced
75.10instrumentation for nanomaterials analysis,
75.11to be awarded on a one-to-one matching basis
75.12to qualifying Minnesota small businesses.
75.13This is a onetime appropriation.
75.14(w) $50,000 the first year is for a contract
75.15with a public higher education institution
75.16in Minnesota jointly entered into with the
75.17Center for Rural Development to study the
75.18needs of the renewable energy economy for
75.19trained employees and the training required
75.20for those employees. The study must include
75.21extensive consultation and involvement of
75.22representatives of the renewable energy
75.23industry, environmental interests, labor, the
75.24University of Minnesota, and the Minnesota
75.25State Colleges and Universities. The
75.26commissioner shall report the results of the
75.27study to the chairs of the finance divisions
75.28of the legislature with jurisdiction over
75.29economic development, energy, and higher
75.30education by November 1, 2007. This is a
75.31onetime appropriation.
75.32(x) $25,000,000 is for the Minnesota
75.33minerals 21st century fund created in
75.34Minnesota Statutes, section 116J.423,
75.35to restore the money unallotted by the
76.1commissioner of finance in 2003 pursuant
76.2to Minnesota Statutes, section 16A.152.
76.3This appropriation may be used as provided
76.4in Minnesota Statutes, section 116J.423,
76.5subdivision 2. This appropriation is available
76.6until expended.
76.7(y) $900,000 each year is for a grant to the
76.8city of St. Paul to be used to pay debt service
76.9on bond obligations issued by the city of St.
76.10Paul in 1996 for the convention center.
76.11(z) $189,000 each year is appropriated from
76.12the general fund to the commissioner of
76.13employment and economic development for
76.14grants of $63,000 to eligible organizations
76.15each year and for the purposes of this
76.16paragraph. Each state grant dollar must be
76.17matched with $1 of nonstate funds. Any
76.18balance in the first year does not cancel but is
76.19available in the second year.
76.20The commissioner of employment and
76.21economic development must make grants to
76.22organizations to assist in the development
76.23of entrepreneurs and small businesses.
76.24Three grants must be awarded to continue
76.25or to develop a program. One grant must
76.26be awarded to the Riverbend Center for
76.27Entrepreneurial Facilitation in Blue Earth
76.28County, and two to other organizations
76.29serving Faribault and Martin Counties. Grant
76.30recipients must report to the commissioner
76.31by February 1 of each year that the
76.32organization receives a grant with the
76.33number of customers served; the number of
76.34businesses started, stabilized, or expanded;
76.35the number of jobs created and retained; and
77.1business success rates. The commissioner
77.2must report to the house of representatives
77.3and senate committees with jurisdiction
77.4over economic development finance on the
77.5effectiveness of these programs for assisting
77.6in the development of entrepreneurs and
77.7small businesses.
77.8
Subd. 3.Workforce Development
48,896,000
48,622,000
77.9
Appropriations by Fund
77.10
General
34,726,000
34,452,000
77.11
77.12
Workforce
Development
14,170,000
14,170,000
77.13(a) $6,785,000 each year is for the Minnesota
77.14job skills partnership program under
77.15Minnesota Statutes, sections 116L.01 to
77.16116L.17. If the appropriation for either
77.17year is insufficient, the appropriation for the
77.18other year is available. This appropriation is
77.19available until spent.
77.20(b) $305,000 each year is for a grant under
77.21Minnesota Statutes, section 116J.8747, to
77.22Twin Cities RISE! to provide training to
77.23hard-to-train individuals.
77.24(c) $1,125,000 each year is from
77.25the workforce development fund for
77.26Opportunities Industrialization Center
77.27programs.
77.28(d) $5,864,000 each year is from the general
77.29fund and $6,920,000 each year is from the
77.30workforce development fund for extended
77.31employment services for persons with
77.32severe disabilities or related conditions
77.33under Minnesota Statutes, section 268A.15.
77.34Of this, $250,000 is to supplement funds
77.35paid for wage incentive for the community
78.1support fund established in Minnesota Rules,
78.2part 3300.2045.
78.3(e) $1,900,000 each year is for grants for
78.4programs that provide employment support
78.5services to persons with mental illness under
78.6Minnesota Statutes, sections 268A.13 and
78.7268A.14. Up to $77,000 each year may be
78.8used for administrative and salary expenses.
78.9(f) $2,190,000 each year is for grants under
78.10Minnesota Statutes, section 268A.11, for the
78.11eight centers for independent living. Money
78.12not expended the first year is available the
78.13second year.
78.14(g) $5,940,000 each year is for State Services
78.15for the Blind activities.
78.16(h) $150,000 each year is from the general
78.17fund and $175,000 each year is from the
78.18workforce development fund for grants under
78.19Minnesota Statutes, section 268A.03, to Rise,
78.20Inc. for the Minnesota Employment Center
78.21for People Who are Deaf or Hard-of-Hearing.
78.22Money not expended the first year is
78.23available the second year.
78.24(i) $9,021,000 each year is for the vocational
78.25rehabilitation program. At least $325,000
78.26each year must be used for interpreters for
78.27a regional transition program specializing
78.28in culturally appropriate transition
78.29services leading to employment for deaf,
78.30hard-of-hearing, and deaf-blind students.
78.31(j) $150,000 each year is for a grant to
78.32Advocating Change Together for training,
78.33technical assistance, and resource materials
78.34to persons with developmental and mental
78.35illness disabilities.
79.1(k) $250,000 each year for a grant to
79.2Lifetrack Resources for its immigrant/refugee
79.3collaborative programs, including those
79.4related to job-seeking skills and workplace
79.5orientation, intensive job development,
79.6functional work English, and on-site job
79.7coaching.
79.8(l) $1,075,000 each year is for the youthbuild
79.9program under Minnesota Statutes, sections
79.10116L.361 to 116L.366.
79.11(m) $1,350,000 each year is from the
79.12workforce development fund for grants
79.13to fund summer youth employment in
79.14Minneapolis. The grants shall be used to
79.15fund up to 500 jobs for youth each summer.
79.16Of this appropriation, $350,000 each year is
79.17for a grant to the learn-to-earn summer youth
79.18employment program. The commissioner
79.19shall establish criteria for awarding the
79.20grants. This appropriation is available in
79.21either year of the biennium and is available
79.22until spent.
79.23(n) $50,000 each year is for a grant
79.24to Northern Connections in Perham to
79.25implement and operate a pilot workforce
79.26program that provides one-stop supportive
79.27services to assist individuals as they transition
79.28into the workforce. This appropriation is
79.29available to the extent it is matched by $1 of
79.30nonstate money for each $1 of state money.
79.31(o) $100,000 each year is for a grant to
79.32Ramsey County Workforce Investment Board
79.33for the development of the building lives
79.34program. This is a onetime appropriation.
80.1(p) $300,000 each year is for a grant to the
80.2Hennepin-Carver Workforce Investment
80.3Board (WIB) to coordinate with the Partners
80.4for Progress Regional Skills Consortium
80.5to provide employment and training as
80.6demonstrated by the Twin Cities regional
80.7health care training partnership project.
80.8(q) $160,000 the first year is for a grant
80.9to Workforce Development, Inc., for a
80.10pilot project to provide demand-driven
80.11employment and training services to
80.12welfare recipients and other economically
80.13disadvantaged populations in Mower,
80.14Freeborn, Dodge, and Steele Counties. This
80.15is a onetime appropriation.
80.16(r) $200,000 each year is for a grant to
80.17HIRED to operate its industry sector training
80.18initiatives, which provide employee training
80.19developed in collaboration with employers in
80.20specific, high-demand industries. This is a
80.21onetime appropriation.
80.22(s) $200,000 the first year is for a grant
80.23to a nonprofit organization. The nonprofit
80.24organization must work on behalf of all
80.25licensed vendors to coordinate their efforts
80.26to respond to solicitations or other requests
80.27from private and governmental units as
80.28defined in Minnesota Statutes, section
80.29471.59, subdivision 1, in order to increase
80.30employment opportunities for persons with
80.31disabilities.
80.32(t) $3,500,000 each year from the workforce
80.33development fund is for the Minnesota youth
80.34program under Minnesota Statutes, section
80.35116L.56 and 116L.561.
81.1(u) $500,000 each year from the workforce
81.2development fund is for a grant to the
81.3Minnesota Alliance of Boys and Girls
81.4Clubs to administer a statewide project
81.5of youth job skills development. This
81.6project, which may have career guidance
81.7components, including health and life skills,
81.8is to encourage, train, and assist youth in
81.9job-seeking skills, workplace orientation,
81.10and job site knowledge through coaching.
81.11This grant requires a 25 percent match from
81.12nonstate resources.
81.13(v) $350,000 in each year from the workforce
81.14development fund is for a grant to Ramsey
81.15County for a summer youth employment
81.16program to place at-risk youth, ages 14 to 21,
81.17in subsidized summer employment.
81.18The commissioner must provide funding
81.19for the Minnesota Conservation Corps to
81.20provide learning stipends for deaf students
81.21and wages for interpreters participating in
81.22the MCC summer youth program.
81.23
Subd. 4.State-Funded Administration
2,998,000
3,020,000
81.24The first $1,450,000 deposited in each
81.25year of the biennium and in each year of
81.26subsequent bienniums into the contingent
81.27account created under Minnesota Statutes,
81.28section 268.196, subdivision 3, shall be
81.29transferred by June 30 of each fiscal year
81.30to the workforce development fund created
81.31under Minnesota Statutes, section 116L.20.
81.32Deposits in excess of $1,450,000 shall be
81.33transferred by June 30 of each fiscal year to
81.34the general fund.

82.1
82.2
Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY
82.3
Subdivision 1.Total Appropriation
$
29,002,000
$
29,794,000
82.4
Appropriations by Fund
82.5
2008
2009
82.6
General
4,644,000
5,035,000
82.7
82.8
Workers'
Compensation
21,716,000
22,053,000
82.9
82.10
Workforce
Development
765,000
781,000
82.11
82.12
State Government
Special Revenue
1,877,000
1,925,000
82.13The amounts that may be spent for each
82.14purpose are specified in the following
82.15subdivisions.
82.16
Subd. 2.Workers' Compensation
10,381,000
10,659,000
82.17This appropriation is from the workers'
82.18compensation fund.
82.19$200,000 each year is for grants to the
82.20Vinland Center for rehabilitation services.
82.21
Subd. 3.Safety Codes and Services
9,949,000
10,134,000
82.22$5,292,000 the first year and $5,388,000
82.23the second year are from the workers'
82.24compensation fund. $1,877,000 the first year
82.25and $1,925,000 the second year are from the
82.26state government special revenue fund.
82.27$1,000,000 each year is from the workers'
82.28compensation fund for patient safe handling
82.29grants under Minnesota Statutes, section
82.30182.6553.
82.31$100,000 each year is from the workers'
82.32compensation fund for the operation of
82.33the meatpacking industry workers' rights
82.34ombudsman under Minnesota Statutes,
82.35section 179.87.
83.1
Subd. 4.Labor Standards/Apprenticeship
2,629,000
2,995,000
83.2
Appropriations by Fund
83.3
General
1,864,000
2,214,000
83.4
83.5
Workforce
Development
765,000
781,000
83.6The appropriation from the workforce
83.7development fund is for the apprenticeship
83.8program under Minnesota Statutes, chapter
83.9178, and includes $100,000 each year for
83.10labor education and advancement program
83.11grants.
83.12$360,000 the first year and $300,000 the
83.13second year from the general fund are for
83.14prevailing wage enforcement of which
83.15$60,000 in the first year is for outreach and
83.16survey participation improvements.
83.17
Subd. 5.General Support
6,043,000
6,006,000
83.18This appropriation is from the workers'
83.19compensation fund.

83.20
83.21
Sec. 5. BUREAU OF MEDIATION
SERVICES
83.22
Subdivision 1.Total Appropriation
$
1,850,000
$
1,877,000
83.23The amounts that may be spent for each
83.24purpose are specified in the following
83.25subdivisions.
83.26
Subd. 2.Mediation Services
1,700,000
1,727,000
83.27
83.28
Subd. 3.Labor Management Cooperation
Grants
150,000
150,000
83.29$150,000 each year is for grants to area labor
83.30management committees. Grants may be
83.31awarded for a 12-month period beginning
83.32July 1 each year. Any unencumbered balance
83.33remaining at the end of the first year does not
83.34cancel but is available for the second year.

84.1
84.2
Sec. 6. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,663,000
$
1,710,000
84.3This appropriation is from the workers'
84.4compensation fund.

84.5
Sec. 7. BOARD OF ACCOUNTANCY
$
493,000
$
499,000

84.6
84.7
84.8
84.9
Sec. 8. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
795,000
$
805,000

84.10
Sec. 9. BOARD OF BARBER EXAMINERS
$
711,000
$
724,000

84.11
84.12
Sec. 10. MINNESOTA BOXING
COMMISSION
$
50,000
$
-0-
84.13To transition the commission to being a
84.14self-funded entity.

84.15    Sec. 11. BIOSCIENCE ZONES DESIGNATION.
84.16    The commissioner of employment and economic development must establish a
84.17criteria for expanding the zones. The criteria must limit designating a new zone to a
84.18community that has adequate resources and infrastructure to support bioindustry, including
84.19postsecondary institutions, strong health care systems, and existing bioscience companies.
84.20It must also require that a new zone be located on a transportation corridor.

84.21    Sec. 12. NANOTECHNOLOGY DEVELOPMENT FUND.
84.22    Subdivision 1. Nanotechnology development fund created. The nanotechnology
84.23development fund (NDF) is created in the state treasury. Money in the fund is appropriated
84.24to the commissioner of employment and economic development for the purposes of this
84.25section.
84.26    Subd. 2. Program established; purpose. The nanotechnology development
84.27fund program is established to develop a collaborative economic development initiative
84.28between the state of Minnesota, the private sector, and multiple academic institutions
84.29to promote by small businesses an increased use of advanced nanoinstrumentation for
84.30characterization, fabrication, and other related processes; provide research consulting
84.31by knowledgeable specialists; and provide student internship opportunities to increase
84.32nanotechnology experience by working with small, medium, or large Minnesota
85.1companies. The NDF program shall be administered by the Department of Employment
85.2and Economic Development and is not a state agency.
85.3    Subd. 3. Definition; qualifying Minnesota small business. "Qualifying Minnesota
85.4small business" means:
85.5    (1) a Minnesota small business corporation, sole proprietorship, or partnership that
85.6has fewer than 50 employees; or
85.7    (2) a Minnesota business corporation, sole proprietorship, or partnership that:
85.8    (i) has 51 to 100 employees; and
85.9    (ii) demonstrates current financial adversity or risk or a major prospect of aiding
85.10the business's long-term outlook by significant use of nanotechnology in the business's
85.11offerings.
85.12    Subd. 4. Use of fund; grants. The commissioner shall extend onetime matching
85.13grants from the NDF to qualifying Minnesota small businesses located throughout the
85.14state to:
85.15    (1) add nanotechnology applications to products that are being developed by
85.16Minnesota small businesses to enhance distinctiveness;
85.17    (2) promote the depth, breadth, and value of technologies being developed by
85.18Minnesota businesses with the aid of nanotechnology;
85.19    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product
85.20time-to-market, with higher incidence of distinct product characteristics;
85.21    (4) provide Minnesota small businesses with broader access to experienced research
85.22consultants; and
85.23    (5) increase the number of researchers experienced in working with
85.24nanoinstrumentation.
85.25    Subd. 5. Grant application and award procedure. (a) The commissioner may
85.26give priority to applicants:
85.27    (1) whose intellectual property would benefit from utilization of nanoinstrumentation
85.28not possessed in-house;
85.29    (2) who are currently utilizing nanoinstrumentation either at the University of
85.30Minnesota or a private sector location on a leased, hourly basis; and
85.31    (3) who wish to increase their access to experienced research consultants.
85.32    (b) The commissioner shall decide whether to award a grant to an eligible applicant
85.33based on:
85.34    (1) the applicant's planned frequency of usage of nanoinstrumentation for
85.35characterization, fabrication, and other related processes; and
86.1    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form
86.2of a signed affidavit from a certified facility to confirm the one-to-one private sector
86.3investment has been met.
86.4    (c) A grant made under this section must:
86.5    (1) include verification of matching rental fees or internship stipends paid by the
86.6grantee; and
86.7    (2) be for a total amount paid to each grantee of not less than $500 nor more than
86.8$20,000 within the biennium.
86.9    Subd. 6. Administration. The commissioner of employment and economic
86.10development must develop and maintain a record-keeping system that specifies how
86.11funds from the NDF are applied for and distributed. Businesses receiving grants
86.12from the NDF must provide contact information, the date and time of the use of the
86.13nanoinstrumentation, proof of their matching contribution to meet the rental costs or
86.14provide an internship's stipend, and a general statement of the expected outcome from
86.15the use of the nanoinstrumentation, to the extent documentation can be made without
86.16divulging proprietary information.
86.17    Subd. 7. Gifts and donations. Gifts and donations, including land or interests
86.18in land, may be made to NDF. Noncash gifts and donations must be disposed of for
86.19cash as soon as the commissioner of employment and economic development can
86.20prudently maximize the value of the gift or donation. All funds must be credited to the
86.21nanotechnology development fund. All interest earned by the fund must be credited to
86.22the NDF.
86.23    Subd. 8. Report to legislature. By June 30 of each odd-numbered year, the
86.24commissioner of employment and economic development must submit a report to the
86.25legislature with statistics about the use of the NDF.

86.26ARTICLE 7
86.27EMPLOYMENT AND DEVELOPMENT-RELATED PROVISIONS

86.28    Section 1. Minnesota Statutes 2006, section 116J.401, is amended by adding a
86.29subdivision to read:
86.30    Subd. 4. Use of funds for unemployed worker assistance. Payment of employee
86.31compensation costs from the Wagner-Peyser Act referenced in subdivision 1, clause
86.32(8), must be used to provide direct benefit to unemployed and underemployed workers
86.33through the state's workforce centers. At least 75 percent of the employee compensation
86.34paid from Wagner-Peyser funds must be used for employees at workforce centers who
86.35provide direct assistance to unemployed and underemployed workers and no more than
87.125 percent may be used for providing hiring and human resource services for employers.
87.2The funds under this section may be used to establish an internet based labor exchange
87.3system. By July 1 of each year, the commissioner must submit a report to the committees
87.4of the legislature responsible for oversight of unemployment insurance with details on
87.5the use of Wagner-Peyser funds, including the number of employee positions funded, the
87.6location of the employees, and the use of funds for internet labor exchange system and
87.7other business assistance.

87.8    Sec. 2. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT
87.9INVESTMENT FUND.
87.10    Subdivision 1. Eligible organization. For the purposes of this section, "eligible
87.11organization" means an organization established pursuant to section 116J.415 which
87.12provides business financing to greater Minnesota businesses.
87.13    Subd. 2. Investment fund establishment. The commissioner shall establish an
87.14investment fund from which fund investments can be made in eligible organizations. The
87.15funds repaid by the eligible organizations are to be returned to the fund for subsequent
87.16reinvestment in eligible organizations.
87.17    Subd. 3. Authorized investments. The commissioner is authorized to make
87.18investments in eligible organizations. The commissioner shall invest funds in the form of
87.19loans to eligible organizations for the purpose of providing capital to new and expanding
87.20businesses in the form of debt or equity, or both.
87.21    Subd. 4. Investment authorized. The commissioner may make investments in
87.22eligible organizations under the following terms:
87.23    (1) the organization seeking an investment of funds must guarantee repayment of not
87.24less than 100 percent of the funds invested in the eligible organization;
87.25    (2) the investments are to be made in the form of a loan to the eligible organization
87.26for a term of ten years, at an interest rate of one percent;
87.27    (3) during the ten-year term of the loan, the eligible organization shall make annual
87.28interest-only payments;
87.29    (4) at the end of the ten-year term, the eligible organization is required to make a
87.30payment in the entire principal amount of the initial loan;
87.31    (5) the state investment by the commissioner in any eligible organization may not
87.32exceed $2,000,000;
87.33    (6) the full amount of state investment will be advanced to the approved eligible
87.34organization upon execution of a formal investment agreement, specifying the terms of the
87.35loan, as well as reporting and other requirements outlined in subdivision 5;
88.1    (7) the eligible organization must maintain the funds in accounts that allow the funds
88.2to be readily available for business investments;
88.3    (8) the eligible organization must make business investments totaling the entire
88.4amount of funds loaned by the state within three years of the execution of the investment
88.5agreement and subsequent transmittal of the funds; and
88.6    (9) an eligible organization that receives an investment under this section shall
88.7report annually, in a format prescribed by the commissioner, the nature and amount of
88.8the business investments made, including, for each financing transaction involving funds
88.9received pursuant to this section, all forms and amounts of financing provided by the
88.10eligible organization from sources other than the investment fund established pursuant to
88.11this section, along with the number of jobs created and private sector investment leveraged.
88.12    Subd. 5. Requirements for state investments. All investments are subject to an
88.13investment agreement which must include:
88.14    (1) a description of the eligible organization, including business finance experience,
88.15qualifications, and investment history;
88.16    (2) a description of the uses of investment proceeds by the eligible organization;
88.17    (3) an explanation of the investment objectives;
88.18    (4) a description of accounting and reporting standards to be used by the eligible
88.19organization; and
88.20    (5) a copy of the most recent audited financial statements of the eligible organization.

88.21    Sec. 3. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:
88.22    Subdivision 1. Grant account. A contaminated site cleanup and development
88.23grant account is created in the general fund. Money in the account may be used, as
88.24appropriated by law, to make grants as provided in section 116J.554 and to pay for the
88.25commissioner's costs in reviewing applications and making grants. Notwithstanding
88.26section 16A.28, money appropriated to the account for this program from any source is
88.27available for four years until spent.

88.28    Sec. 4. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:
88.29    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the
88.30following criteria are met:
88.31    (1) the site is not scheduled for funding during the current or next fiscal year under
88.32the Comprehensive Environmental Response, Compensation, and Liability Act, United
88.33States Code, title 42, section 9601, et seq. or under the Environmental Response, and
88.34Liability Act under sections 115B.01 to 115B.20;
89.1    (2) the appraised value of the site after adjusting for the effect on the value of the
89.2presence or possible presence of contaminants using accepted appraisal methodology, or
89.3the current market value of the site as issued under section 273.121, separately taking into
89.4account the effect of the contaminants on the market value, (i) is less than 75 percent of
89.5the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup
89.6costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and
89.7    (3) (2) if the proposed cleanup is completed, it is expected that the site will be
89.8improved with buildings or other improvements and these improvements will provide a
89.9substantial increase in the property tax base within a reasonable period of time or the site
89.10will be used for an important publicly owned or tax-exempt facility.

89.11    Sec. 5. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:
89.12    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
89.13will exceed the available appropriations and the agency will be able to provide grants to
89.14only some of the applicant development authorities.
89.15    (b) If applications for grants for qualified sites exceed the available appropriations,
89.16the agency shall make grants for sites that, in the commissioner's judgment, provide
89.17the highest return in public benefits for the public costs incurred and that meet all the
89.18requirements provided by law. In making this judgment, the commissioner shall consider
89.19the following factors:
89.20    (1) the recommendations or ranking of projects by the commissioner of the Pollution
89.21Control Agency regarding the potential threat to public health and the environment that
89.22would be reduced or eliminated by completion of each of the response action plans;
89.23    (2) the potential increase in the property tax base of the local taxing jurisdictions,
89.24considered relative to the fiscal needs of the jurisdictions, that will result from
89.25developments that will occur because of completion of each of the response action plans;
89.26    (3) the social value to the community of the cleanup and redevelopment of the site,
89.27including the importance of development of the proposed public facilities on each of
89.28the sites;
89.29    (4) the probability that each site will be cleaned up without use of government
89.30money in the reasonably foreseeable future by considering but not limited to the current
89.31market value of the site versus the cleanup cost;
89.32    (5) the amount of cleanup costs for each site; and
89.33    (6) the amount of the commitment of municipal or other local resources to pay for
89.34the cleanup costs.
90.1    The factors are not listed in a rank order of priority; rather the commissioner may
90.2weigh each factor, depending upon the facts and circumstances, as the commissioner
90.3considers appropriate. The commissioner may consider other factors that affect the net
90.4return of public benefits for completion of the response action plan. The commissioner,
90.5notwithstanding the listing of priorities and the goal of maximizing the return of public
90.6benefits, shall make grants that distribute available money to sites both within and outside
90.7of the metropolitan area. The commissioner shall provide a written statement of the
90.8supporting reasons for each grant. Unless sufficient applications are not received for
90.9qualifying sites outside of the metropolitan area, at least 25 percent of the money provided
90.10as grants must be made for sites located outside of the metropolitan area.

90.11    Sec. 6. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:
90.12    Subdivision 1. Commissioner discretion. The commissioner may make a grant for
90.13up to 50 percent of the eligible costs of a project. The determination of whether to make a
90.14grant for a site is within the discretion of the commissioner, subject to this section and
90.15sections 116J.571 to 116J.574 and available unencumbered money in the redevelopment
90.16account. For grants made in fiscal years 2008 and 2009, at least 75 percent of the available
90.17grant funds must be used for grants in greater Minnesota. For grants made in fiscal year
90.182010 and later, at least 50 percent of the available grant funds must be used for grants
90.19in greater Minnesota. If the commissioner determines that the applications for grants
90.20for projects in greater Minnesota are less than the amount of grant funds available, the
90.21commissioner may make grants for projects anywhere in Minnesota. The commissioner's
90.22decisions and application of the priorities under this section are not subject to judicial
90.23review, except for abuse of discretion.

90.24    Sec. 7. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:
90.25    Subd. 1a. Priorities. (a) If applications for grants exceed the available
90.26appropriations, grants shall be made for sites that, in the commissioner's judgment, provide
90.27the highest return in public benefits for the public costs incurred. "Public benefits" include
90.28job creation, bioscience development, environmental benefits to the state and region,
90.29efficient use of public transportation, efficient use of existing infrastructure, provision of
90.30affordable housing, multiuse development that constitutes community rebuilding rather
90.31than single-use development, crime reduction, blight reduction, community stabilization,
90.32and property tax base maintenance or improvement. In making this judgment, the
90.33commissioner shall give priority to redevelopment projects with one or more of the
90.34following characteristics:
91.1    (1) the need for redevelopment in conjunction with contamination remediation needs;
91.2    (2) the redevelopment project meets current tax increment financing requirements
91.3for a redevelopment district and tax increments will contribute to the project;
91.4    (3) the redevelopment potential within the municipality;
91.5    (4) proximity to public transit if located in the metropolitan area; and
91.6    (5) redevelopment costs related to expansion of a bioscience business in Minnesota;
91.7and
91.8    (5) (6) multijurisdictional projects that take into account the need for affordable
91.9housing, transportation, and environmental impact.
91.10    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
91.11commissioner may weigh each factor, depending upon the facts and circumstances, as
91.12the commissioner considers appropriate. The commissioner may consider other factors
91.13that affect the net return of public benefits for completion of the redevelopment plan. The
91.14commissioner, notwithstanding the listing of priorities and the goal of maximizing the
91.15return of public benefits, shall make grants that distribute available money to sites both
91.16within and outside of the metropolitan area. Unless sufficient applications are not received
91.17for qualifying sites outside of the metropolitan area, at least 25 percent of the money
91.18provided as grants must be made for sites located outside of the metropolitan area.

91.19    Sec. 8. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:
91.20    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and
91.21facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in
91.22addition to the powers granted by section 116J.035, the commissioner may:
91.23    (1) locate, develop, and promote international markets for Minnesota products
91.24and services;
91.25    (2) arrange and lead trade missions to countries with promising international markets
91.26for Minnesota goods, technology, services, and agricultural products;
91.27    (3) promote Minnesota products and services at domestic and international trade
91.28shows;
91.29    (4) organize, promote, and present domestic and international trade shows featuring
91.30Minnesota products and services;
91.31    (5) host trade delegations and assist foreign traders in contacting appropriate
91.32Minnesota businesses and investments;
91.33    (6) develop contacts with Minnesota businesses and gather and provide information
91.34to assist them in locating and communicating with international trading or joint venture
91.35counterparts;
92.1    (7) provide information, education, and counseling services to Minnesota businesses
92.2regarding the economic, commercial, legal, and cultural contexts of international trade;
92.3    (8) provide Minnesota businesses with international trade leads and information
92.4about the availability and sources of services relating to international trade, such as
92.5export financing, licensing, freight forwarding, international advertising, translation, and
92.6custom brokering;
92.7    (9) locate, attract, and promote foreign direct investment and business development
92.8in Minnesota to enhance employment opportunities in Minnesota;
92.9    (10) provide foreign businesses and investors desiring to locate facilities in
92.10Minnesota information regarding sources of governmental, legal, real estate, financial, and
92.11business services;
92.12    (11) enter into contracts or other agreements with private persons and public entities,
92.13including agreements to establish and maintain offices and other types of representation in
92.14foreign countries, to carry out the purposes of promoting international trade and attracting
92.15investment from foreign countries to Minnesota and to carry out this section, without
92.16regard to section 16C.06; and
92.17    (12) market trade-related materials to businesses and organizations, and the proceeds
92.18of which must be placed in a special revolving account and are appropriated to the
92.19commissioner to prepare and distribute trade-related materials.
92.20    (b) The programs and activities of the commissioner of employment and economic
92.21development and the Minnesota Trade Division may not duplicate programs and activities
92.22of the commissioner of agriculture.
92.23    (c) The commissioner shall notify the chairs of the senate Finance and house Ways
92.24and Means Committees of each agreement under this subdivision to establish and maintain
92.25an office or other type of representation in a foreign country.
92.26    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing
92.27assistance to official visits by foreign government representatives and shall serve as liaison
92.28to the foreign diplomatic corps in Minnesota.

92.29    Sec. 9. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision
92.30to read:
92.31    Subd. 4. Workforce development intermediaries. "Workforce development
92.32intermediaries" means public, private, or nonprofit entities that provide employment
92.33services to low-income individuals and have a demonstrated track record bringing together
92.34employers and workers, private and public funding streams, and other stakeholders to
92.35implement pathways to career advancement for low-income individuals. Entities may
93.1include, but are not limited to, nonprofit organizations, educational institutions, or the
93.2administrative entity of a local workforce service area.

93.3    Sec. 10. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:
93.4    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid
93.5for developing programs which assist in the transition of persons from welfare to work and
93.6assist individuals at or below 200 percent of the federal poverty guidelines. The program
93.7is to be operated by the board. The board shall consult and coordinate with program
93.8administrators at the Department of Employment and Economic Development to design
93.9and provide services for temporary assistance for needy families recipients.
93.10    Pathways grants-in-aid may be awarded to educational or other nonprofit training
93.11institutions or to workforce development intermediaries for education and training
93.12programs and services supporting education and training programs that serve eligible
93.13recipients.
93.14    Preference shall be given to projects that:
93.15    (1) provide employment with benefits paid to employees;
93.16    (2) provide employment where there are defined career paths for trainees;
93.17    (3) pilot the development of an educational pathway that can be used on a continuing
93.18basis for transitioning persons from welfare to work; and
93.19    (4) demonstrate the active participation of Department of Employment and
93.20Economic Development workforce centers, Minnesota State College and University
93.21institutions and other educational institutions, and local welfare agencies.
93.22    Pathways projects must demonstrate the active involvement and financial
93.23commitment of private business. Pathways projects must be matched with cash or in-kind
93.24contributions on at least a one-to-one one-half-to-one ratio by participating private
93.25business.
93.26    A single grant to any one institution shall not exceed $400,000. A portion of a grant
93.27may be used for preemployment training.

93.28    Sec. 11. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:
93.29    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
93.30have the meanings given them in this subdivision.
93.31    (b) "Commissioner" means the commissioner of employment and economic
93.32development.
93.33    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the
93.34time employment ceased or was working in the state at the time employment ceased and:
94.1    (1) has been permanently separated or has received a notice of permanent separation
94.2from public or private sector employment and is eligible for or has exhausted entitlement
94.3to unemployment benefits, and is unlikely to return to the previous industry or occupation;
94.4    (2) has been long-term unemployed and has limited opportunities for employment
94.5or reemployment in the same or a similar occupation in the area in which the individual
94.6resides, including older individuals who may have substantial barriers to employment by
94.7reason of age;
94.8    (3) has been terminated or has received a notice of termination of employment as a
94.9result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
94.10    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
94.11result of general economic conditions in the community in which the individual resides or
94.12because of natural disasters; or
94.13    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who
94.14has spent a substantial number of years in the home providing homemaking service and
94.15(i) has been dependent upon the financial support of another; and now due to divorce,
94.16separation, death, or disability of that person, must find employment to self support; or (ii)
94.17derived the substantial share of support from public assistance on account of dependents
94.18in the home and no longer receives such support.
94.19    To be eligible under this clause, the support must have ceased while the worker
94.20resided in Minnesota.
94.21    (d) "Eligible organization" means a state or local government unit, nonprofit
94.22organization, community action agency, business organization or association, or labor
94.23organization.
94.24    (e) "Plant closing" means the announced or actual permanent shutdown of a single
94.25site of employment, or one or more facilities or operating units within a single site of
94.26employment.
94.27    (f) "Substantial layoff" means a permanent reduction in the workforce, which is
94.28not a result of a plant closing, and which results in an employment loss at a single site
94.29of employment during any 30-day period for at least 50 employees excluding those
94.30employees that work less than 20 hours per week.

94.31    Sec. 12. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:
94.32    Subdivision 1. Determination and collection of special assessment. (a) In addition
94.33to amounts due from an employer under the Minnesota unemployment insurance program,
94.34each employer, except an employer making reimbursements is liable for a special
94.35assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on
95.1all taxable wages, as defined in section 268.035, subdivision 24. Beginning January 1,
95.22008, the special assessment shall be levied at a rate of .085 percent per year on all taxable
95.3wages. The assessment shall become due and be paid by each employer on the same
95.4schedule and in the same manner as other amounts due from an employer under section
95.5268.051, subdivision 1 .
95.6    (b) The special assessment levied under this section shall be subject to the same
95.7requirements and collection procedures as any amounts due from an employer under the
95.8Minnesota unemployment insurance program.

95.9    Sec. 13. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:
95.10    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
95.11corporation with which it has entered into an agreement under subdivision 1. These
95.12loans must be used to support a new or expanding business. This support may include
95.13such forms of financing as the sale of goods to the business on installment or deferred
95.14payments, lease purchase agreements, or royalty investments in the business. The interest
95.15rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
95.16the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
95.17nonprofit corporation may charge a loan origination fee equal to or less than one percent
95.18of the loan value. The nonprofit corporation may retain the amount of the origination fee.
95.19The nonprofit corporation must provide at least an equal match to the loan received by the
95.20board. The maximum loan available to the nonprofit corporation under this subdivision is
95.21$50,000. Loans made to the nonprofit corporation under this subdivision may be made
95.22without interest. Repayments made by the nonprofit corporation must be deposited in the
95.23revolving fund created for urban initiative grants.

95.24    Sec. 14. [116O.115] SMALL BUSINESS GROWTH ACCELERATION
95.25PROGRAM.
95.26    Subdivision 1. Establishment; purpose. The small business growth acceleration
95.27program is established. The purpose of the program is to (1) help qualified companies
95.28implement technology and business improvements; and (2) bridge the gap between
95.29standard market pricing for technology and business improvements and what qualified
95.30companies can afford to pay.
95.31    Subd. 2. Qualified company. A company is qualified to receive assistance under
95.32the small business growth acceleration program if it is a manufacturing company or a
95.33manufacturing-related service company that employs 100 or fewer full-time equivalent
95.34employees.
96.1    Subd. 3. Applications for assistance. A company seeking assistance under the
96.2small business growth acceleration program must file an application according to the
96.3requirements of the corporation. A company's application for small business growth
96.4acceleration program assistance must include documentation of the company's overall plan
96.5for technology and business improvement and prioritize the components of the overall
96.6plan. The application must also document the company's need for small business growth
96.7acceleration program funds in order to carry forward the highest priority components of
96.8the plan.
96.9    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish
96.10procedures for determining which applicants for assistance under the small business
96.11growth acceleration program will receive program funding. Funding shall be awarded
96.12only to accelerate a qualified company's adoption of needed technology or business
96.13improvements when the corporation concludes that it is unlikely the improvements could
96.14be accomplished in any other way.
96.15    (b) The maximum amount of funds awarded to a qualified company under the small
96.16business growth acceleration program for a particular project must not exceed 50 percent
96.17of the total cost of a project and must not under any circumstances exceed $25,000 during
96.18a calendar year. The corporation shall not award to a qualified company small business
96.19growth acceleration program funds in excess of $50,000 per year.
96.20    (c) Any funds awarded to a qualified company under the small business growth
96.21acceleration program must be used for business services and products that will enhance the
96.22operation of the company. These business services and products must come either directly
96.23from the corporation or from a network of expert providers identified and approved by
96.24the corporation. No company receiving small business growth acceleration program
96.25funds may use the funds for refinancing, overhead costs, new construction, renovation,
96.26equipment, or computer hardware.
96.27    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
96.28documented according to requirements of the corporation.
96.29    Subd. 5. Service agreements. The corporation shall enter a written service
96.30agreement with each company awarded funds under the small business growth acceleration
96.31program. Each service agreement shall clearly articulate the company's need for service,
96.32state the cost of the service, identify who will provide the service, and define the scope of
96.33the service that will be provided. The service agreement must also include an estimate
96.34of the financial impact of the service on the company and require the company to report
96.35the actual financial impact of the service to the corporation 24 months after the service is
96.36provided.
97.1    Subd. 6. Reporting. The corporation shall report annually to the legislative
97.2committees with fiscal jurisdiction over the Department of Employment and Economic
97.3Development:
97.4    (1) the funds awarded under the small business growth acceleration program during
97.5the past 12 months;
97.6    (2) the estimated financial impact of the funds awarded to each company receiving
97.7service under the program; and
97.8    (3) the actual financial impact of funds awarded during the past 24 months.

97.9    Sec. 15. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.
97.10    Subdivision 1. Definitions. For the purposes of this section and section 179.87:
97.11    (1) "employer" means any person or business entity having 25 or more employees
97.12in the meatpacking industry; and
97.13    (2) "meatpacking industry" means business operations in which slaughtering,
97.14butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry
97.15packing, poultry manufacturing, pet food manufacturing, processing of meatpacking
97.16products, or rendering is carried on. Meatpacking products include livestock and poultry
97.17products.
97.18    Subd. 2. Right to adequate facilities. An employer must provide its employees:
97.19    (1) adequate and working restroom facilities;
97.20    (2) adequate room for meal and rest breaks;
97.21    (3) adequate locker facilities; and
97.22    (4) adequate time for necessary restroom and meal breaks as required under chapter
97.23177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter
97.24126, or a valid collective bargaining agreement.
97.25    Subd. 3. Right to adequate equipment and training. An employer must furnish its
97.26employees with equipment and training that is adequate to perform the job task assigned.
97.27An employer must make ongoing skill development and training opportunities, including
97.28supervisory training, available to employees.
97.29    Subd. 4. Information provided to employee by employer. (a) An employer must
97.30provide an explanation in an employee's native language of the employee's rights and
97.31duties as an employee either person-to-person or through written materials as required
97.32by state or federal law, or a valid collective bargaining agreement that, at a minimum,
97.33includes:
97.34    (1) a complete description of the salary and benefits plans as they relate to the
97.35employee as required under chapter 181;
98.1    (2) a job description for the employee's position as required under chapter 181;
98.2    (3) a description of leave policies as required under chapter 181 and United States
98.3Code, title 29, chapter 28;
98.4    (4) a description of the work hours and work hours policy as required under chapter
98.5181; United States Code, title 29, chapter 201; or a valid collective bargaining agreement;
98.6and
98.7    (5) a description of the occupational hazards known to exist for the position as
98.8required under chapters 181 and 182 and United States Code, title 29, chapter 15.
98.9    (b) The explanation must also include information on the following employee rights
98.10as protected by state or federal law and a description of where additional information
98.11about those rights may be obtained:
98.12    (1) the right to organize and bargain collectively as required under this chapter and
98.13chapter 177, and United States Code, title 29, chapter 7;
98.14    (2) the right to a safe workplace as required under chapters 181 and 182 and United
98.15States Code, title 29, chapter 15; and
98.16    (3) the right to be free from discrimination as required under this chapter and
98.17chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.
98.18    Subd. 5. Civil action. A person aggrieved as a result of a violation of this section
98.19may file suit in any district court of this state. If the court finds that the respondent has
98.20intentionally violated this section, the court may award damages up to and including an
98.21amount equal to the original damages and may provide injunctive relief.
98.22    Subd. 6. Criminal penalty. An employer who violates this section is guilty of a
98.23misdemeanor.

98.24    Sec. 16. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS
98.25OMBUDSMAN.
98.26    Subdivision 1. Position established. The position of meatpacking industry workers
98.27rights ombudsman is established within the Department of Labor and Industry. The
98.28ombudsman shall be an employee of the department. The ombudsman shall be appointed
98.29by the commissioner in consultation with the chairs of the standing committees of the
98.30senate and house of representatives with jurisdiction over labor and employment issues in
98.31accordance with the preference established in subdivision 5.
98.32    Subd. 2. Duties. The ombudsman shall inspect and review the practices and
98.33procedures of meatpacking operations in the state. The ombudsman shall work to ensure
98.34workers rights under section 179.86 are protected.
99.1    Subd. 3. Access. The ombudsman or designated representatives of the ombudsman
99.2shall have access to all meatpacking operations in the state at any time meatpacking
99.3products are being processed and industry workers are on the job.
99.4    Subd. 4. Office. Necessary office space, furniture, equipment, and supplies as
99.5well as necessary assistance for the ombudsman shall be provided by the Department of
99.6Labor and Industry.
99.7    Subd. 5. Language preference. Preference shall be given to applicants for the
99.8ombudsman position who are fluent in languages in addition to English.
99.9    Subd. 6. Report. The ombudsman shall, on or before December 1 of each year,
99.10submit a report to the members of the legislature and the governor regarding any
99.11recommended actions the ombudsman deems necessary or appropriate to provide for the
99.12fair treatment of workers in the meatpacking industry.

99.13    Sec. 17. Minnesota Statutes 2006, section 181.78, is amended by adding a subdivision
99.14to read:
99.15    Subd. 4. Forfeiture of employer rights. (a) This subdivision applies to an
99.16invention or proposal by an employee in which the employer has an enforceable interest
99.17by contract or otherwise.
99.18    (b) An employer who has a right to develop or utilize an invention or proposal
99.19must make a substantial investment in the invention or proposal within five years of the
99.20submission of the invention or proposal or forfeit all rights and interests in the invention
99.21or proposal to the employee.
99.22    (c) An employee who has acquired the rights and interests of an employer under
99.23paragraph (b) may transfer that interest in the invention or proposal to anyone.
99.24    (d) An employer must notify in writing an employee who submits an invention or
99.25proposal to the employer of the employee's right under this subdivision within ten days of
99.26the submission. The employer must date and describe the proposal or invention received
99.27by the employer and provide a copy to the employee.

99.28    Sec. 18. [181A.115] PROHIBITED EMPLOYMENT RELATING TO THE
99.29PRESENCE OF LIQUOR.
99.30    No minor under the age of 18 shall be employed in any rooms constituting the place
99.31in which intoxicating liquors or 3.2 percent malt liquors are served or consumed or in any
99.32tasks involving the serving, dispensing, or handling of such liquors that are consumed on
99.33the premises except that:
100.1    (1) minors who have reached the age of 16 may be employed to perform busing or
100.2dishwashing services in those rooms or areas of a restaurant, hotel, motel, or resort where
100.3the presence of intoxicating liquor is incidental to food service or preparation;
100.4    (2) minors who have reached the age of 16 may be employed to perform busing or
100.5dishwashing services or to provide waiter or waitress service in rooms or areas where the
100.6presence of 3.2 percent malt liquor is incidental to food service or preparation;
100.7    (3) minors who have reached the age of 16 may be employed to provide musical
100.8entertainment in those rooms or areas where the presence of intoxicating liquor and 3.2
100.9percent malt liquor is incidental to food service or preparation; and
100.10    (4) minors are not prevented from working at tasks which are not prohibited by law
100.11in establishments where liquor is sold, served, dispensed, or handled in those rooms or
100.12areas where no liquor is consumed or served.

100.13    Sec. 19. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:
100.14    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on
100.15employers and employees of this state resulting from personal injuries and illnesses arising
100.16out of work situations is substantial; that the prevention of these injuries and illnesses is an
100.17important objective of the government of this state; that the greatest hope of attaining this
100.18objective lies in programs of research and education, and in the earnest cooperation of
100.19government, employers and employees; and that a program of regulation and enforcement
100.20is a necessary supplement to these more basic programs.
100.21    The legislature declares it to be its purpose and policy through the exercise of its
100.22powers to assure so far as possible every worker in the state of Minnesota safe and
100.23healthful working conditions and to preserve our human resources by:
100.24    (a) authorizing the Occupational Safety and Health Advisory Council to advise,
100.25consult with or recommend on any matters relating to the Minnesota occupational
100.26safety and health plan to the commissioner of labor and industry and by authorizing the
100.27commissioner of labor and industry to promulgate and enforce mandatory occupational
100.28safety and health standards applicable to employers and employees in the state of
100.29Minnesota;
100.30    (b) encouraging employers and employees to increase their efforts to reduce the
100.31number of occupational safety and health hazards at their places of employment, and to
100.32stimulate employers and employees to institute new and to perfect existing programs for
100.33providing safe and healthful working conditions;
100.34    (c) providing that employers and employees have separate but dependent
100.35responsibilities and rights with respect to achieving safe and healthful working conditions;
101.1    (d) providing for research in the field of occupational safety and health; including
101.2the psychological factors involved, and by developing innovative methods, techniques,
101.3and approaches for dealing with occupational safety and health problems;
101.4    (e) exploring ways to discover latent diseases, establishing causal connections
101.5between diseases and work in environmental conditions, and conducting other research
101.6relating to health problems, in recognition of the fact that occupational health standards
101.7present problems often different from those involved in occupational safety;
101.8    (f) utilizing advances already made by federal laws and regulations providing safe
101.9and healthful working conditions;
101.10    (g) providing criteria which will assure insofar as practicable that no employee
101.11will suffer diminished health, functional capacity, or life expectancy as a result of work
101.12experience;
101.13    (h) providing an effective enforcement program which shall include locating
101.14enforcement personnel in areas of the state with a higher incidence of workplace fatalities,
101.15injuries, and complaints and a prohibition against giving advance notice of an inspection
101.16and sanctions for any individual violating this prohibition;
101.17    (i) providing for appropriate reporting procedures with respect to occupational
101.18safety and health, which procedures will help achieve the objectives of this chapter and
101.19accurately describe the nature of the occupational safety and health problem;
101.20    (j) encouraging joint labor-management efforts to reduce injuries and diseases
101.21arising out of employment;
101.22    (k) providing consultation to employees and employers which will aid them in
101.23complying with their responsibilities under this chapter where such consultation does not
101.24interfere with the effective enforcement of this chapter; and
101.25    (l) providing for training programs to increase the number and competence of
101.26personnel engaged in the field of occupational safety and health.

101.27    Sec. 20. [182.6551] CITATION.
101.28    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."

101.29    Sec. 21. [182.6552] DEFINITIONS.
101.30    Subdivision 1. Direct patient care worker. "Direct patient care worker" means an
101.31individual doing the job of directly providing physical care to patients including nurses, as
101.32defined by section 148.171, who provide physical care to patients.
102.1    Subd. 2. Health care facility. "Health care facility" means a hospital as defined in
102.2section 144.50, subdivision 2; an outpatient surgical center as defined in section 144.55,
102.3subdivision 2; and a nursing home as defined in section 144A.01, subdivision 5.
102.4    Subd. 3. Safe patient handling. "Safe patient handling" means a process, based on
102.5scientific evidence on causes of injuries, that uses safe patient handling equipment rather
102.6than people to transfer, move, and reposition patients in all health care facilities to reduce
102.7workplace injuries. This process also reduces the risk of injury to patients.
102.8    Subd. 4. Safe patient handling equipment. "Safe patient handling equipment"
102.9means engineering controls, lifting and transfer aids, or mechanical assistive devices used
102.10by nurses and other direct patient care workers instead of manual lifting to perform the
102.11acts of lifting, transferring, and repositioning health care facility patients and residents.

102.12    Sec. 22. [182.6553] SAFE PATIENT HANDLING PROGRAM.
102.13    Subdivision 1. Safe patient handling program required. (a) By July 1, 2008,
102.14every licensed health care facility in the state shall adopt a written safe patient handling
102.15policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing
102.16manual lifting of patients by nurses and other direct patient care workers by utilizing
102.17safe patient handling equipment.
102.18    (b) The program shall address:
102.19    (1) assessment of hazards with regard to patient handling;
102.20    (2) the acquisition of an adequate supply of appropriate safe patient handling
102.21equipment;
102.22    (3) initial and ongoing training of nurses and other direct patient care workers on
102.23the use of this equipment;
102.24    (4) procedures to ensure that physical plant modifications and major construction
102.25projects are consistent with program goals; and
102.26    (5) periodic evaluations of the safe patient handling program.
102.27    Subd. 2. Safe patient handling committee. (a) By July 1, 2008, every licensed
102.28health care facility in the state shall establish a safe patient handling committee either by
102.29creating a new committee or assigning the functions of a safe patient handling committee
102.30to an existing committee.
102.31    (b) Membership of a safe patient handling committee or an existing committee must
102.32meet the following requirements:
102.33    (1) at least half the members shall be nonmanagerial nurses and other direct patient
102.34care workers; and
103.1    (2) in a health care facility where nurses and other direct patient care workers
103.2are covered by a collective bargaining agreement, the union shall select the committee
103.3members proportionate to its representation of nonmanagerial workers, nurses, and other
103.4direct patient care workers.
103.5    (c) A health care organization with more than one covered health care facility may
103.6establish a committee at each facility or one committee to serve this function for all the
103.7facilities. If the organization chooses to have one overall committee for multiple facilities,
103.8at least half of the members of the overall committee must be nonmanagerial nurses and
103.9other direct patient care workers and each facility must be represented on the committee.
103.10    (d) Employees who serve on a safe patient handling committee must be compensated
103.11by their employer for all hours spent on committee business.
103.12    Subd. 3. Facilities with existing programs. A facility that has already adopted a
103.13safe patient handling policy that satisfies the requirements of subdivision 1, and established
103.14a safe patient handling committee by July 1, 2008, is considered to be in compliance
103.15with those requirements. The committee must continue to satisfy the requirements of
103.16subdivision 2, paragraph (b), on an ongoing basis.
103.17    Subd. 4. Committee duties. A safe patient handling committee shall:
103.18    (1) complete a patient handling hazard assessment that:
103.19    (i) considers patient handling tasks, types of nursing units, patient populations, and
103.20the physical environment of patient care areas;
103.21    (ii) identifies problems and solutions;
103.22    (iii) identifies areas of highest risk for lifting injuries; and
103.23    (iv) recommends a mechanism to report, track, and analyze injury trends;
103.24    (2) make recommendations on the purchase, use, and maintenance of an adequate
103.25supply of appropriate safe patient handling equipment;
103.26    (3) make recommendations on training of nurses and other direct patient care
103.27workers on use of safe patient handling equipment, initially when the equipment arrives at
103.28the facility and periodically afterwards;
103.29    (4) conduct annual evaluations of the safe patient handling implementation plan and
103.30progress toward goals established in the safe patient handling policy; and
103.31    (5) recommend procedures to ensure that, when remodeling of patient care areas
103.32occurs, the plans incorporate safe patient handling equipment or the physical space and
103.33construction design needed to accommodate safe patient handling equipment at a later date.
103.34    Subd. 5. Training materials. The commissioner shall make training materials on
103.35implementation of this section available to all health care facilities at no cost as part of the
103.36training and education duties of the commissioner under section 182.673.
104.1    Subd. 6. Enforcement. This section shall be enforced by the commissioner under
104.2section 182.661. A violation of this section is subject to the penalties provided under
104.3section 182.666.
104.4    Subd. 7. Grant program. The commissioner may make grants to health care
104.5facilities to acquire safe patient handling equipment and for training on safe patient
104.6handling and safe patient handling equipment. Grants to any one facility may not exceed
104.7$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The
104.8commissioner shall establish a grant application process. The commissioner may give
104.9priority for grants to facilities that demonstrate that acquiring safe patient handling
104.10equipment will impose a financial hardship on the facility. For health care facilities
104.11that provide evidence of hardship, the commissioner may waive the 50 percent match
104.12requirement and may grant such a facility more than $40,000. Health care facilities that
104.13the commissioner determines are experiencing hardship shall not be required to meet the
104.14safe patient handling requirements until July 1, 2012.

104.15    Sec. 23. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:
104.16    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall not
104.17be eligible to receive unemployment benefits for any week with respect to which the
104.18applicant is receiving, has received, or has filed for payment, equal to or in excess of the
104.19applicant's weekly unemployment benefit amount, in the form of:
104.20    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
104.21shall not apply to vacation pay paid upon a permanent separation from employment;
104.22    (2) severance pay, bonus pay, sick pay, and any other money payments, except
104.23earnings under subdivision 5, and back pay under subdivision 6, paid by an employer
104.24because of, upon, or after separation from employment, but only if the money payment is
104.25considered wages at the time of payment under section 268.035, subdivision 29, or United
104.26States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;.
104.27This clause does not apply to the first $10,000 of any amount of severance pay, bonus
104.28pay, sick pay, or any other payments paid to an employee with annual salary or wages
104.29under $75,000; or
104.30    (3) pension, retirement, or annuity payments from any plan contributed to by a base
104.31period employer including the United States government, except Social Security benefits
104.32which are provided for in subdivision 4. The base period employer contributed to the
104.33plan if the contribution is excluded from the definition of wages under section 268.035,
104.34subdivision 29
, clause (1), or United States Code, title 26, section 3121, clause (2), of
104.35the Federal Insurance Contribution Act.
105.1    An applicant shall not be considered to have received the lump sum payment if the
105.2applicant immediately deposits that payment in a qualified pension plan or account; or
105.3    (4) holiday pay.
105.4    (b) This subdivision shall apply to all the weeks of payment and shall be applied to
105.5the period immediately following the last day of employment. The number of weeks of
105.6payment shall be determined as follows:
105.7    (1) if the payments are made periodically, the total of the payments to be received
105.8shall be divided by the applicant's last level of regular weekly pay from the employer; or
105.9    (2) if the payment is made in a lump sum, that sum shall be divided by the applicant's
105.10last level of regular weekly pay from the employer.
105.11    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
105.12unemployment benefits shall be reduced by the amount of the payment. If the computation
105.13of reduced unemployment benefits is not a whole dollar, it shall be rounded down to the
105.14next lower whole dollar.
105.15EFFECTIVE DATE.This section is effective for unemployment benefits paid on
105.16or after January 1, 2006, regardless of when the continued request was filed or the week
105.17for which the unemployment benefits are paid.

105.18    Sec. 24. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision
105.19to read:
105.20    Subd. 5. Unemployment insurance benefits telephone system. The commissioner
105.21must ensure that the telephone system used for unemployment insurance benefits provides
105.22an option for any caller to speak to an unemployment insurance specialist. An individual
105.23who calls any of the publicized telephone numbers seeking information about applying for
105.24benefits or on the status of a claim must have the option to speak on the telephone to a
105.25specialist who can provide direct assistance or can direct the caller to the person or office
105.26that is able to respond to the caller's needs.

105.27    Sec. 25. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:
105.28    Subd. 13. Supported employment. (a) "Supported employment" means
105.29employment of a person with a disability so severe that the person needs ongoing training
105.30and support to get and keep a job in which:
105.31    (1) the person engages in paid work in a position removed from the service vendor's
105.32site where individuals without disabilities who do not require public subsidies also may
105.33be employed;
106.1    (2) public funds are necessary to provide ongoing training and support services
106.2throughout the period of the person's employment; and
106.3    (3) the person has the opportunity for social interaction with individuals who do not
106.4have disabilities and who are not paid caregivers.
106.5    (b) If the commissioner has certified a rehabilitation facility setting as integrated,
106.6then employment at that site may be considered supported employment.

106.7    Sec. 26. Minnesota Statutes 2006, section 268A.01, is amended by adding a
106.8subdivision to read:
106.9    Subd. 14. Affirmative business enterprise employment. "Affirmative business
106.10enterprise employment" means employment which provides paid work on the premises of
106.11an affirmative business enterprise as certified by the commissioner.
106.12    Affirmative business enterprise employment is considered community employment
106.13for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided
106.14that the wages for individuals reported must be at or above customary wages for the
106.15same employer. The employer must also provide one benefit package that is available to
106.16all employees.

106.17    Sec. 27. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:
106.18    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit
106.19corporation, or combination thereof establishing a rehabilitation facility shall appoint a
106.20rehabilitation facility board of no fewer than nine seven voting members before becoming
106.21eligible for the assistance provided by sections 268A.06 to 268A.15. When any city,
106.22town, or county singly establishes such a rehabilitation facility, the board shall be
106.23appointed by the chief executive officer of the city or the chair of the governing board
106.24of the county or town. When any combination of cities, towns, counties, or nonprofit
106.25corporations establishes a rehabilitation facility, the chief executive officers of the cities,
106.26nonprofit corporations, and the chairs of the governing bodies of the counties or towns
106.27shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation
106.28facility, the corporation shall appoint the board of directors. Membership on a board
106.29shall be representative of the community served and shall include a person with a
106.30disability. One-third to one-half of the board shall be representative of industry or
106.31business. The remaining members should be representative of lay associations for persons
106.32with a disability, labor, the general public, and education, welfare, medical, and health
106.33professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude
106.34the appointment of elected or appointed public officials or members of the board of
107.1directors of the sponsoring nonprofit corporation to the board, so long as the representation
107.2described above is preserved. If a county establishes an extended employment program
107.3and manages the program with county employees, the governing board shall be the county
107.4board of commissioners, and other provisions of this chapter pertaining to membership on
107.5the governing board do not apply.

107.6    Sec. 28. Minnesota Statutes 2006, section 268A.15, is amended by adding a
107.7subdivision to read:
107.8    Subd. 9. Integrated setting. At the commissioner's discretion, paid work on the
107.9premises of a rehabilitation facility may be certified as an integrated setting after a site
107.10review by the department.

107.11    Sec. 29. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision
107.12to read:
107.13    Subd. 5. Local planning assistance. A regional development commission or,
107.14in regions not served by regional development commissions, a regional organization
107.15selected by the commissioner of employment and economic development, may develop a
107.16program to support planning on behalf of local units of government. The local planning
107.17must be related to issues of regional or statewide significance and may include, but is not
107.18limited to, the following:
107.19    (1) local planning and development assistance, which may include local zoning
107.20ordinances and land use plans;
107.21    (2) community or economic development plans, which may include workforce
107.22development plans, housing development plans and market analysis, JOBZ administration,
107.23grant writing assistance, and grant administration;
107.24    (3) environment and natural resources plans, which may include solid waste
107.25management plans, wastewater management plans, and renewable energy development
107.26plans;
107.27    (4) rural community health services; and
107.28    (5) development of geographical information systems to serve regional needs,
107.29including hardware and software purchases and related labor costs.
107.30    Each regional development commission or organization shall submit to the
107.31commissioner of employment and economic development an annual work program
107.32that outlines the work items for the upcoming year and establishes the relationship of
107.33the work items to development issues of regional or statewide significance. The entity
107.34completing the annual work program and identifying the statewide development issues
108.1shall consider input from the Departments of Employment and Economic Development,
108.2Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as
108.3appropriate to the issues.

108.4    Sec. 30. WORKFORCE ENHANCEMENT FEE.
108.5    If the commissioner of employment and economic development determines that
108.6the need for services under the dislocated worker program substantially exceeds the
108.7resources that will be available for the program, the commissioner may increase the
108.8special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no
108.9more than .12 percent of taxable wages.

108.10    Sec. 31. FEDERAL PROCUREMENT LIAISON.
108.11    The commissioner of employment and economic development must establish and
108.12operate a technology and commercialization unit in the Department of Employment and
108.13Economic Development. Appropriation for this purpose must be used to: coordinate
108.14public and private efforts to procure federal funding for collaborative research and
108.15development projects of primary benefit to small- and medium-sized businesses; promote
108.16contractual relationships between Minnesota businesses who, as recipients of federal
108.17grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess
108.18the research and development capabilities of small- and medium-sized businesses;
108.19undertake referral activities to link Minnesota companies with federal requests for
108.20proposal opportunities; and develop a framework for Minnesota companies to establish
108.21sole-sourcing relationships with federal agencies.
108.22    The commissioner must report to the committees in the house of representatives and
108.23the senate having jurisdiction over bioscience and technology issues on the activities of
108.24the technology and commercialization unit by June 30 of each year.

108.25    Sec. 32. LOCATION OF NORTHERN MINNESOTA INSPECTORS.
108.26    By December 31, 2007, the commissioner of labor and industry must assign three
108.27occupational safety and health inspectors to one or more offices on the Iron Range and one
108.28inspector to an office in Bemidji.

108.29    Sec. 33. ROLE OF STATE LEGISLATURE IN TRADE POLICY.
108.30    (a) It shall be the policy of the state that approval for the state to be bound by any
108.31trade agreement requires the consent of the state legislature.
109.1    (b) Four state legislative contacts must be informed by the governor when any trade
109.2agreement arrives in the governor's office. The four contacts are the majority and minority
109.3leader of the senate or their designated legislators, and the speaker and minority leader in
109.4the house of representatives or their designated legislators. The legislature declares that
109.5the purposes of the state contacts are to:
109.6    (1) serve as the state's official legislative liaisons with the governor and the state
109.7legislature on trade-related matters;
109.8    (2) serve as the legislature's designated recipients from the governor of federal
109.9requests for consent to consultation regarding investment, procurement, services, or other
109.10provisions of international trade agreements, which impinge on state law or regulatory
109.11authority reserved to the states;
109.12    (3) transmit information regarding federal requests from the governor to all
109.13appropriate legislative committees;
109.14    (4) issue a formal request to the Department of Employment and Economic
109.15Development and all appropriate state agencies to provide analysis of all proposed trade
109.16agreements' impact on state legislative authority and the economy of the state;
109.17    (5) inform all members of the legislature on a regular basis about ongoing trade
109.18negotiations and dispute settlement proceedings with implications for the state more
109.19generally;
109.20    (6) communicate the concerns of the legislature to the governor and the United
109.21States trade representative regarding ongoing and proposed trade negotiations; and
109.22    (7) notify the governor and the United States trade representative of the outcome
109.23of any legislative action.
109.24    (c) The following actions are required before the state shall consent to the terms of
109.25a trade agreement:
109.26    (1) when a federal trade request has been received, the governor must submit the
109.27request to the legislative contacts on a day both houses are in session. The request must
109.28contain a copy of the final legal text of the agreement together with:
109.29    (i) a report by the Department of Employment and Economic Development in
109.30consultation with, at a minimum, the following agencies: Department of Administration,
109.31Department of Labor and Industry, Department of Agriculture, Department of Natural
109.32Resources, and the Minnesota Pollution Control Agency. The report shall include an
109.33analysis of how the agreement of the state to the specific provisions of the agreement
109.34will change or affect existing state law;
109.35    (ii) a statement of any administrative action proposed to implement these trade
109.36agreement provisions in the state; and
110.1    (iii) a draft of legislation authorizing the state to sign on to the specific listed
110.2provisions of the agreement in question;
110.3    (2) at least one public hearing, with adequate public notice, shall occur before the
110.4legislature votes on the bill; and
110.5    (3) the bill authorizing the state to sign on to specific listed provisions of an
110.6agreement is enacted into law.
110.7    (d) It is the sense of this legislature that Congress should pass legislation instructing
110.8the United States trade representative to fully and formally consult individual state
110.9legislatures regarding procurement, services, investment, or any other trade agreement
110.10rules that impact state laws or authority before negotiations begin and as they develop,
110.11and to seek consent from state legislatures in addition to governors prior to binding
110.12states to conform their laws to the terms of international commercial agreements. Such
110.13legislation is necessary to ensure the prior informed consent of the state with regard to
110.14future international trade and investment agreements.
110.15    (e) The state attorney general shall notify the United States trade representative of
110.16the policies in paragraph (d) in writing no later than 30 days after its effective date, and
110.17shall provide copies of the notice to the president of the senate, speaker of the house of
110.18representatives, the governor, and the state's congressional delegation.

110.19    Sec. 34. STUDY; SAFE PATIENT HANDLING.
110.20    (a) The commissioner of labor and industry shall study ways to require workers'
110.21compensation insurers to recognize compliance with Minnesota Statutes, section
110.22182.6553, in the workers' compensation premiums of health care and long-term care
110.23facilities. The commissioner shall report by January 15, 2008, the results of the study
110.24to the chairs of the policy committees of the legislature with primary jurisdiction over
110.25workers' compensation issues.
110.26    (b) By January 15, 2008, the commissioner must make recommendations to the
110.27legislature regarding funding sources available to health care facilities for safe patient
110.28handling programs and equipment, including, but not limited to, low interest loans, interest
110.29free loans, and federal, state, or county grants.

110.30    Sec. 35. WORK GROUP; SAFE PATIENT HANDLING.
110.31    The Minnesota State Council on Disability shall convene a work group comprised
110.32of representatives from the Minnesota Medical Association and other organizations
110.33representing clinics, disability advocates, and direct care workers, to do the following:
111.1    (1) assess the current options for and use of safe patient handling equipment in
111.2unlicensed outpatient clinics, physician offices, and dental settings;
111.3    (2) identify barriers to the use of safe patient handling equipment in these settings;
111.4and
111.5    (3) define clinical settings that move patients to determine applicability of the Safe
111.6Patient Handling Act.
111.7    The work group must report to the legislature by January 15, 2008, including
111.8reports to the chairs of the senate and house of representatives committees on workforce
111.9development.

111.10    Sec. 36. EFFECT ON RULES.
111.11    The commissioner of labor and industry shall amend Minnesota Rules, part
111.125200.0910, to conform to Minnesota Statutes, section 181A.115. The commissioner
111.13may use the good cause exemption in Minnesota Statutes, section 14.388, in adopting
111.14the amendment required by this section.

111.15    Sec. 37. PUBLIC FACILITIES AUTHORITY FUNDING.
111.16    To the greatest practical extent, projects on the Public Facilities Authority's 2007
111.17intended use plan, the listings for which were based on the Pollution Control Agency's
111.182006 project priority list, shall be carried over to the 2008 intended use plan. Projects that
111.19qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258,
111.20section 21, that could not be certified by the Pollution Control Agency by the applicable
111.21deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court
111.22issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to
111.23obtain the required certification from the Pollution Control Agency.

111.24    Sec. 38. REPEALER.
111.25Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.

111.26ARTICLE 8
111.27LICENSING AND WAGES

111.28    Section 1. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:
111.29    Subdivision 1. Examination of records. The commissioner may enter during
111.30reasonable office hours or upon request and inspect the place of business or employment of
111.31any employer of employees working in the state, to examine and inspect books, registers,
111.32payrolls, and other records of any employer that in any way relate to wages, hours, and
112.1other conditions of employment of any employees. The commissioner may transcribe any
112.2or all of the books, registers, payrolls, and other records as the commissioner deems
112.3necessary or appropriate and may question the employees to ascertain compliance with
112.4sections 177.21 to 177.35 177.435. The commissioner may investigate wage claims or
112.5complaints by an employee against an employer if the failure to pay a wage may violate
112.6Minnesota law or an order or rule of the department.

112.7    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:
112.8    Subd. 4. Compliance orders. The commissioner may issue an order requiring an
112.9employer to comply with sections 177.21 to 177.35 177.435, 181.02, 181.03, 181.031,
112.10181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, 181.932,
112.11and 181.9325
, or with any rule promulgated under section 177.28. The department shall
112.12serve the order upon the employer or the employer's authorized representative in person or
112.13by certified mail at the employer's place of business. An employer who wishes to contest
112.14the order must file written notice of objection to the order with the commissioner within
112.1515 calendar days after being served with the order. A contested case proceeding must then
112.16be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
112.17served with the order, the employer fails to file a written notice of objection with the
112.18commissioner, the order becomes a final order of the commissioner.

112.19    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 5, is amended to read:
112.20    Subd. 5. Civil actions. (a) The commissioner may bring an action in the district
112.21court where an employer resides or where the commissioner maintains an office to enforce
112.22or require compliance with orders issued under subdivision 4.
112.23    (b) If the district court determines that a violation of section 181.932 or 181.9325
112.24occurred, the court may order any appropriate relief, including but not limited to
112.25reinstatement, back pay, restoration of lost service credit, if appropriate, compensatory
112.26damages, and the expungement of any adverse records of a state employee or applicant
112.27for state employment who was the subject of the alleged acts of misconduct, and any
112.28appropriate relief as described in section 181.936.

112.29    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:
112.30    Subd. 8. Court actions; suits brought by private parties. An employee may bring
112.31a civil action seeking redress for a violation or violations of sections 177.21 to 177.35
112.32177.44 directly to district court. An employer who pays an employee less than the wages
112.33and overtime compensation to which the employee is entitled under sections 177.21 to
113.1177.35 177.44 is liable to the employee for the full amount of the wages, gratuities, and
113.2overtime compensation, less any amount the employer is able to establish was actually
113.3paid to the employee and for an additional equal amount as liquidated damages. In
113.4addition, in an action under this subdivision the employee may seek damages and other
113.5appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement
113.6between the employee and the employer to work for less than the applicable wage is not
113.7a defense to the action.

113.8    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:
113.9    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may
113.10be filed in the district court of the county wherein a violation or violations of sections
113.11177.21 to 177.35 177.44 are alleged to have been committed, where the respondent resides
113.12or has a principal place of business, or any other court of competent jurisdiction. The
113.13action may be brought by one or more employees.

113.14    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:
113.15    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8,
113.16the court shall order an employer who is found to have committed a violation or violations
113.17of sections 177.21 to 177.35 177.44 to pay to the employee or employees reasonable costs,
113.18disbursements, witness fees, and attorney fees.

113.19    Sec. 7. Minnesota Statutes 2006, section 177.27, is amended by adding a subdivision
113.20to read:
113.21    Subd. 11. Investigation of certain complaints. (a) The commissioner shall conduct
113.22an investigation of any matter that alleges a violation of sections 181.932 and 181.9325.
113.23The identity of the person providing the information that initiated the investigation shall
113.24be classified as private data, pursuant to section 13.02, subdivision 12, except that the
113.25identity may be disclosed to a law enforcement agency that is conducting a criminal
113.26investigation of the matter.
113.27    (b) For each investigation completed, if the commissioner determines that there is
113.28reasonable cause to believe that an employer has violated section 181.932 or 181.9325,
113.29the commissioner shall report the nature and details of the alleged violation to the head
113.30of the employing agency or the appropriate appointing authority. If appropriate, the
113.31commissioner shall report this information to the attorney general, the policy committees
113.32of the house of representatives and senate having jurisdiction over the subject involved,
113.33and to any other authority that the commissioner deems appropriate. In any case
114.1in which the commissioner submits a report of alleged violations to the head of the
114.2employing agency or appropriate appointing authority, that individual shall report to the
114.3commissioner with respect to any action taken by the individual regarding the activity, the
114.4first report being transmitted no later than 30 days after the date of the auditor's report,
114.5and monthly thereafter until final action has been taken.
114.6    (c) This subdivision shall not limit any authority conferred upon the attorney general
114.7or other department or agency of government to investigate and prosecute any matter.
114.8    (d) The commissioner shall have all the powers and authority described in this
114.9section to conduct investigations pursuant to this subdivision.

114.10    Sec. 8. [177.275] INVESTIGATION PROCEDURE.
114.11    (a) The commissioner shall initiate an investigation of a written complaint of
114.12reprisal or retaliation in public employment as prohibited by section 181.932 or 181.9325
114.13within ten working days of its submission. The commissioner shall complete findings
114.14of the investigation within 60 working days thereafter, and shall provide a copy of the
114.15findings to the complaining employee or applicant for employment and to the appropriate
114.16supervisor, manager, employee, or appointing authority. When the allegations contained
114.17in a complaint of reprisal or retaliation are the same as, or similar to, those contained in
114.18another appeal, the commissioner may consolidate the appeals into the most appropriate
114.19format. In these cases, the time limits described in this subdivision shall not apply.
114.20    (b) If the commissioner finds that the supervisor, manager, employee, or appointing
114.21power retaliated against the complainant for engaging in protected whistle-blower
114.22activities, the commissioner may issue a compliance order under section 177.27,
114.23subdivision 4.
114.24    (c) In order for the governor and the legislature to determine the need to continue
114.25or modify state personnel procedures as they relate to the investigations of reprisals or
114.26retaliation for the disclosure of information by public employees, the commissioner, by
114.27June 30 of each year, shall submit a report to the governor and the legislature regarding
114.28complaints filed, hearings held, and legal actions taken under this section.

114.29    Sec. 9. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:
114.30    Subdivision 1. General authority. The commissioner may adopt rules, including
114.31definitions of terms, to carry out the purposes of sections 177.21 to 177.35 177.44, to
114.32prevent the circumvention or evasion of those sections, and to safeguard the minimum
114.33wage and overtime rates established by sections 177.24 and 177.25.

115.1    Sec. 10. Minnesota Statutes 2006, section 177.30, is amended to read:
115.2177.30 KEEPING RECORDS; PENALTY.
115.3    Every employer subject to sections 177.21 to 177.35 177.44 must make and keep a
115.4record of:
115.5    (1) the name, address, and occupation of each employee;
115.6    (2) the rate of pay, and the amount paid each pay period to each employee;
115.7    (3) the hours worked each day and each workweek by the employee; and
115.8    (4) for each employer subject to sections 177.41 to 177.44, and while performing
115.9work on public works projects funded in whole or in part with state funds, the prevailing
115.10wage master job classification of each employee working on the project for each hour
115.11worked; and
115.12    (4) (5) other information the commissioner finds necessary and appropriate to
115.13enforce sections 177.21 to 177.35. The records must be kept for three years in or near the
115.14premises where an employee works except each employer subject to sections 177.41 to
115.15177.44, and while performing work on public works projects funded in whole or in part
115.16with state funds, the records must be kept for three years after the contracting authority
115.17has made final payment on the public works project.
115.18    The commissioner may fine an employer up to $1,000 for each failure to maintain
115.19records as required by this section. This penalty is in addition to any penalties provided
115.20under section 177.32, subdivision 1. In determining the amount of a civil penalty under
115.21this subdivision, the appropriateness of such penalty to the size of the employer's business
115.22and the gravity of the violation shall be considered.

115.23    Sec. 11. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:
115.24    Subd. 3. Contract requirements. The contract must specifically state the prevailing
115.25wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also
115.26provide that the contracting authority may demand and the contractor or subcontractor
115.27shall furnish to the contracting authority, copies of any and all payrolls, and that the
115.28contracting authority may examine all records relating to wages paid laborers or mechanics
115.29on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision
115.30are in addition to any other requirements or authority set forth in other laws or rules for
115.31work to which sections 177.41 to 177.44 apply.

115.32    Sec. 12. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:
115.33    Subd. 4. Determination by commissioner; posting; petition for reconsideration.
115.34    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all
116.1trades and occupations required in any project must be ascertained before the state asks for
116.2bids. The commissioner of labor and industry shall investigate as necessary to ascertain
116.3the information. The commissioner Each contractor and subcontractor performing work
116.4on a public project shall keep the information posted on the project in at least one
116.5conspicuous place for the information of the employees working on the project. A person
116.6aggrieved by a final determination of the commissioner may petition the commissioner for
116.7reconsideration of findings. A person aggrieved by a decision of the commissioner after
116.8reconsideration may, within 20 days after the decision, petition the commissioner for a
116.9public hearing in the manner of a contested case under sections 14.57 to 14.61.

116.10    Sec. 13. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:
116.11    Subd. 6. Examination of records; investigation by the department. The
116.12Department of Labor and Industry shall enforce this section. The department may
116.13demand, and the contractor and subcontractor shall furnish to the department, copies
116.14of any or all payrolls. The department may examine all records relating to wages paid
116.15laborers or mechanics on work to which sections 177.41 to 177.44 apply. The department
116.16shall employ at least three investigators to perform on-site project reviews, receive and
116.17investigate complaints of violations of this section, and conduct training and outreach to
116.18contractors and contracting authorities for public works projects financed in whole or
116.19in part with state funds.

116.20    Sec. 14. Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision
116.21to read:
116.22    Subd. 6a. Prevailing wage violations. Upon issuing a compliance order to an
116.23employer pursuant to section 177.27, subdivision 4, for violation of sections 177.41 to
116.24177.44, the commissioner shall issue a withholding order to the contracting authority
116.25ordering the contracting authority to withhold payment of sufficient sum to the prime
116.26or general contractor on the project to satisfy the back wages assessed or otherwise
116.27cure the violation, and the contracting authority must withhold the sum ordered until
116.28the compliance order has become a final order of the commissioner and has been fully
116.29paid or otherwise resolved by the employer.
116.30    During an investigation of a violation of sections 177.41 to 177.44 which the
116.31commissioner reasonably determines is likely to result in the finding of a violation of
116.32sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section
116.33177.27, subdivision 4, the commissioner may notify the contracting authority of the
116.34determination and the amount expected to be assessed and the contracting authority shall
117.1give the commissioner 90 days' prior notice of the date the contracting authority intends to
117.2make final payment.

117.3    Sec. 15. [181.723] DEFINITIONS.
117.4    Subdivision 1. Scope. The definitions in this subdivision apply to this section.
117.5    (a) "Person" means any individual, limited liability corporation, corporation,
117.6partnership, incorporated or unincorporated association, sole proprietorship, joint stock
117.7company, or any other legal or commercial entity.
117.8    (b) "Department" means the Department of Labor and Industry.
117.9    (c) "Commissioner" means the commissioner of labor and industry or a duly
117.10designated representative of the commissioner who is either an employee of the
117.11Department of Labor and Industry or person working under contract with the Department
117.12of Labor and Industry.
117.13    (d) "Individual" means a human being.
117.14    (e) "Day" means calendar day unless otherwise provided.
117.15    (f) "Knowingly" means knew or could have known with the exercise of reasonable
117.16diligence.
117.17    (g) "Document" or "documents" includes papers; books; records; memoranda; data;
117.18contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings;
117.19records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars
117.20maintained in any form or manner.
117.21    Subd. 2. Limited application. This section only applies to individuals performing
117.22public or private sector commercial or residential building construction or improvement
117.23services.
117.24    Subd. 3. Employee-employer relationship. Except as provided in subdivision
117.254, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an
117.26individual who performs services for a person that are in the course of the person's trade,
117.27business, profession, or occupation is an employee of that person and that person is an
117.28employer of the individual.
117.29    Subd. 4. Independent contractor. An individual is an independent contractor and
117.30not an employee of the person for whom the individual is performing services in the course
117.31of the person's trade, business, profession, or occupation only if (a) the individual holds
117.32a current independent contractor exemption certificate issued by the commissioner; and
117.33(b) the individual is performing services for the person under the independent contractor
117.34exemption certificate as provided in subdivision 6. The requirements in clauses (a) and (b)
117.35must be met in order to qualify as an independent contractor and not as an employee of
118.1the person for whom the individual is performing services in the course of the person's
118.2trade, business, profession, or occupation.
118.3    Subd. 5. Application. To obtain an independent contractor exemption certificate,
118.4the individual must submit, in the manner prescribed by the commissioner, a complete
118.5application and the certificate fee required under subdivision 14.
118.6    (a) A complete application must include all of the following information:
118.7    (1) the individual's full name;
118.8    (2) the individual's residence address and telephone number;
118.9    (3) the individual's business name, address, and telephone number;
118.10    (4) the services for which the individual is seeking an independent contractor
118.11exemption certificate;
118.12    (5) the individual's Social Security number;
118.13    (6) the individual's or the individual's business federal employer identification
118.14number, if a number has been issued to the individual or the individual's business;
118.15    (7) any information or documentation that the commissioner requires by rule that
118.16will assist the department in determining whether to grant or deny the individual's
118.17application; and
118.18    (8) The individual's sworn statement that the individual meets all of the following
118.19conditions:
118.20    (i) the individual maintains a separate business with the individual's own office,
118.21equipment, materials, and other facilities;
118.22    (ii) the individual holds or has applied for a federal employer identification number
118.23or has filed business or self-employment income tax returns with the federal Internal
118.24Revenue Service if the person has performed services in the previous year for which the
118.25individual is seeking the independent contractor exemption certificate;
118.26    (iii) the individual operates under contracts to perform specific services for specific
118.27amounts of money and under which the individual controls the means of performing the
118.28services;
118.29    (iv) the individual incurs the main expenses related to the service that the individual
118.30performs under contract;
118.31    (v) the individual is responsible for the satisfactory completion of services that the
118.32individual contracts to perform and is liable for a failure to complete the service;
118.33    (vi) the individual receives compensation for service performed under a contract on
118.34a commission or per-job or competitive bid basis and not on any other basis;
118.35    (vii) the individual may realize a profit or suffer a loss under contracts to perform
118.36service;
119.1    (viii) the individual has continuing or recurring business liabilities or obligations; and
119.2    (ix) the success or failure of the individual's business depends on the relationship of
119.3business receipts to expenditures.
119.4    (b) Within 30 days of receiving a complete application and the certificate fee, the
119.5commissioner must either grant or deny the application. The commissioner may deny
119.6an application for an independent contractor exemption certificate if the individual has
119.7not submitted a complete application and certificate fee or if the individual does not
119.8meet all of the conditions for holding the independent contractor exemption certificate.
119.9The commissioner may revoke an independent contractor exemption certificate if the
119.10commissioner determines that the individual no longer meets all of the conditions for
119.11holding the independent contractor exemption certificate, commits any of the actions
119.12set out in subdivision 7, or fails to cooperate with a department investigation into the
119.13continued validity of the individual's certificate. Once issued, an independent contractor
119.14exemption certificate remains in effect for two years unless:
119.15    (1) revoked by the commissioner; or
119.16    (2) canceled by the individual.
119.17    (c) If the department denies an individual's original or renewal application for
119.18an independent contractor exemption certificate or revokes an independent contractor
119.19exemption certificate, the commissioner shall issue to the individual an order denying or
119.20revoking the certificate. The commissioner may issue an administrative penalty order to
119.21an individual or person who commits any of the actions set out in subdivision 7.
119.22    (d) An individual or person to whom the commissioner issues an order under
119.23paragraph (c) shall have 30 days after service of the order to request a hearing. The request
119.24for hearing must be in writing and must be served on or faxed to the commissioner at the
119.25address or fax number specified in the order by the 30th day after service of the order.
119.26If the individual does not request a hearing or if the individual's request for a hearing is
119.27not served on or faxed to the commissioner by the 30th day after service of the order, the
119.28order shall become a final order of the commissioner and will not be subject to review
119.29by any court or agency. The date on which a request for hearing is served by mail shall
119.30be the postmark date on the envelope in which the request for hearing is mailed. If the
119.31individual serves or faxes a timely request for hearing, the hearing shall be a contested
119.32case hearing and shall be held in accordance with chapter 14.
119.33    Subd. 6. Qualifications for exemption certificate. An individual is performing
119.34services for a person under an independent contractor exemption certificate if:
119.35    (a) the individual is performing services listed on the individual's independent
119.36contractor exemption certificate;
120.1    (b) at the time the individual is performing services listed on the individual's
120.2independent contractor exemption certificate, the individual meets all of the following
120.3conditions:
120.4    (1) the individual maintains a separate business with the individual's own office,
120.5equipment, materials, and other facilities;
120.6    (2) the individual holds or has applied for a federal employer identification number
120.7or has filed business or self-employment income tax returns with the federal Internal
120.8Revenue Service if the individual performed services in the previous year for which the
120.9individual has the independent contractor exemption certificate;
120.10    (3) the individual is operating under contract to perform the specific services for
120.11the person for specific amounts of money and under which the individual controls the
120.12means of performing the services;
120.13    (4) the individual is incurring the main expenses related to the services that the
120.14individual is performing for the person under the contract;
120.15    (5) the individual is responsible for the satisfactory completion of the services
120.16that the individual has contracted to perform for the person and is liable for a failure
120.17to complete the services;
120.18    (6) the individual receives compensation from the person for the services performed
120.19under the contract on a commission or per-job or competitive bid basis and not on any
120.20other basis;
120.21    (7) the individual may realize a profit or suffers a loss under the contract to perform
120.22services for the person;
120.23    (8) the individual has continuing or recurring business liabilities or obligations; and
120.24    (9) the success or failure of the individual's business depends on the relationship of
120.25business receipts to expenditures.
120.26    Subd. 7. Prohibited activities. (a) An individual shall not:
120.27    (1) perform work as an independent contractor without first obtaining from the
120.28department an independent contractor exemption certificate;
120.29    (2) perform work as an independent contractor when the department has denied or
120.30revoked the individual's independent contractor exemption certificate;
120.31    (3) transfer to another individual or allow another individual to use the individual's
120.32independent contractor exemption certificate;
120.33    (4) alter or falsify an independent contractor exemption certificate;
120.34    (5) misrepresent the individual's status as an independent contractor; or
121.1    (6) make a false material statement, representation, or certification; omit material
121.2information; or alter, conceal, or fail to file a document required by this section or any rule
121.3promulgated by the commissioner under rulemaking authority set out in this section.
121.4    (b) A person for whom an individual is performing services shall not:
121.5    (1) require an individual through coercion, misrepresentation, or fraudulent means to
121.6adopt independent contractor status;
121.7    (2) knowingly misrepresent that an individual who has not been issued an
121.8independent contractor exemption certificate or is not performing services for the person
121.9under an independent contractor exemption certificate is an independent contractor; or
121.10    (3) make a false material statement, representation, or certification; omit material
121.11information; or alter, conceal, or fail to file a document required by this section or any rule
121.12promulgated by the commissioner under rulemaking authority set out in this section.
121.13    (c) A person for whom an individual is performing services must obtain a copy of the
121.14individual's independent contractor exemption certificate before services may commence.
121.15A copy of the independent contractor exemption certificate must be retained for five years
121.16from the date of receipt by the person for whom an individual is performing services.
121.17    Subd. 8. Remedies. (a) An individual or person who violates any provision of
121.18subdivision 7 is subject to a penalty to be assessed by the department of up to $1,000 for
121.19each violation. The department shall deposit penalties in the assigned risk safety account.
121.20    (b) An individual who has been injured by a violation of subdivision 7, paragraph
121.21(b), may bring a civil action for damages against the violator. If the individual is
121.22determined to be an employee or an independent contractor considered an employee of
121.23the violator of subdivision 7, paragraph (b), the employee's representative as defined in
121.24section 179.01, subdivision 5, may bring a civil action for damages against the violator
121.25on behalf of the employee. In addition to damages the court may award attorney fees,
121.26costs, and disbursements to a recovery under this provision.
121.27    (c) Any court finding that a violation of subdivision 7 has occurred shall
121.28transmit a copy of its findings of fact and conclusion of law to the commissioner. The
121.29commissioner shall report the findings to the relevant state and federal agencies, including
121.30the commissioner of commerce, the commissioner of employment and economic
121.31development, the commissioner of revenue, the federal Internal Revenue Service, and the
121.32United States Department of Labor.
121.33    Subd. 9. Commissioner's powers. (a) In order to carry out the purposes of this
121.34section, the commissioner may:
121.35    (1) administer oaths and affirmations, certify official acts, interview, question, take
121.36oral or written statements, and take depositions;
122.1    (2) request, examine, take possession of, photograph, record, and copy any
122.2documents, equipment, or materials;
122.3    (3) at a time and place indicated by the commissioner, request persons to appear
122.4before the commissioner to give testimony and produce documents, equipment, or
122.5materials;
122.6    (4) issue subpoenas to compel persons to appear before the commissioner to give
122.7testimony and produce documents, equipment, or materials; and
122.8    (5) with or without notice, enter without delay upon any property, public or private,
122.9for the purpose of taking any action authorized under this subdivision or the applicable
122.10law, including obtaining information or conducting inspections or investigations.
122.11    (b) Persons requested by the commissioner to give testimony or produce documents,
122.12equipment, or materials shall respond within the time and in the manner specified by the
122.13commissioner. If no time to respond is specified in the request, then a response shall be
122.14submitted within 30 days of the commissioner's service of the request.
122.15    (c) Upon the refusal or anticipated refusal of a property owner, lessee, property
122.16owner's representative, or lessee's representative to permit the commissioner's entry onto
122.17property as provided in paragraph (a), the commissioner may apply for an administrative
122.18inspection order in the Ramsey County District Court or, at the commissioner's discretion,
122.19in the district court in the county in which the property is located. The commissioner may
122.20anticipate that a property owner or lessee will refuse entry if the property owner, lessee,
122.21property owner's representative, or lessee's representative has refused to permit entry on a
122.22prior occasion or has informed the commissioner that entry will be refused. Upon showing
122.23of administrative probable cause by the commissioner, the district court shall issue an
122.24administrative inspection order that compels the property owner or lessee to permit the
122.25commissioner to enter the property for the purposes specified in paragraph (a).
122.26    (d) Upon the application of the commissioner, a district court shall treat the failure of
122.27any person to obey a subpoena lawfully issued by the commissioner under this subdivision
122.28as a contempt of court.
122.29    Subd. 10. Notice requirements. Unless otherwise specified, service of a document
122.30on a person under this section or section 326B.083 may be by mail, by personal service,
122.31or in accordance with any consent to service filed with the commissioner. Service by
122.32mail shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550,
122.33subpart 2. Personal service shall be accomplished in the manner provided in Minnesota
122.34Rules, part 1400.5550, subpart 3.
122.35    Subd. 11. Facsimile; timely service. When this section or section 326B.083
122.36permits a request for reconsideration or request for hearing to be served by facsimile on
123.1the commissioner, the facsimile shall not exceed 15 pages in length. The request shall be
123.2considered timely served if the facsimile is received by the commissioner, at the facsimile
123.3number identified by the commissioner in the order or notice of violation, no later than
123.44:30 p.m. central time on the last day permitted for faxing the request. Where the quality
123.5or authenticity of the faxed request is at issue, the commissioner may require the original
123.6request to be filed. Where the commissioner has not identified quality or authenticity
123.7of the faxed request as an issue and the request has been faxed in accordance with this
123.8subdivision, the person faxing the request does not need to file the original request with
123.9the commissioner.
123.10    Subd. 12. Time period computation. In computing any period of time prescribed
123.11or allowed by this section, the day of the act, event, or default from which the designated
123.12period of time begins to run shall not be included. The last day of the period so computed
123.13shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the
123.14period runs until the next day which is not a Saturday, Sunday, or legal holiday.
123.15    Subd. 13. Rulemaking. The commissioner may, in consultation with the
123.16commissioner of revenue and the commissioner of employment and economic
123.17development, adopt, amend, suspend, and repeal rules under the rulemaking provisions
123.18of chapter 14 that relate to the commissioner's responsibilities under this section. This
123.19subdivision is effective the day following final enactment.
123.20    Subd. 14. Fee. The certificate fee for the original application and for the renewal
123.21of an independent contractor exemption certificate shall be $150. If an individual
123.22simultaneously submits an application for both an independent contractor exemption
123.23certificate under this section and a license under section 326.98, the application fee for
123.24the independent contractor exemption certificate shall be reduced to $100. The certificate
123.25fee is appropriated to the commissioner for payment of the costs related to administering
123.26and enforcing this section.
123.27    Subd. 15. Notice to commissioner; review by commissioner of revenue. When
123.28the commissioner has reason to believe that an individual who holds a certificate has failed
123.29to maintain all the conditions required by subdivision 3 or is not performing services for a
123.30person under the independent contractor exemption certificate, the commissioner must
123.31notify the commissioner of revenue and the commissioner of employment and economic
123.32development. Upon receipt of notification from the commissioner that an individual who
123.33holds a certificate has failed to maintain all the conditions required by subdivision 3
123.34or is not performing services for a person under the independent contractor exemption
123.35certificate, the commissioner of revenue must review the information returns required
123.36under section 6041A of the Internal Revenue Code. The commissioner of revenue shall
124.1also review the submitted certification that is applicable to returns audited or investigated
124.2under section 289A.35.
124.3    Subd. 16. Data classified. Certifications issued by the commissioner are public
124.4data. Applications and required documentation submitted by an individual is private
124.5data on an individual. Upon request of the Department of Revenue or the Department
124.6of Employment and Economic Development, the commissioner may release to the
124.7Department of Revenue and the Department of Employment and Economic Development
124.8applications and required documentation submitted by individuals and investigative data
124.9that relates to the department's issuance or denial of applications and the department's
124.10revocations of certificates. Except as otherwise provided by this subdivision, the
124.11department's investigative data shall be classified as provided in chapter 13.
124.12EFFECTIVE DATE.This section is effective July 1, 2008.

124.13    Sec. 16. Minnesota Statutes 2006, section 181.932, subdivision 1, is amended to read:
124.14    Subdivision 1. Prohibited action. An employer shall not discharge, discipline,
124.15threaten, otherwise discriminate against, or penalize an employee regarding the employee's
124.16compensation, terms, conditions, location, or privileges of employment because:
124.17    (a) the employee, or a person acting on behalf of an employee, in good faith, reports
124.18a violation or suspected violation of any federal or state law or rule adopted pursuant
124.19to law to an employer or to any governmental body or law enforcement official and
124.20the alleged violation involves a matter of public concern, including, but not limited to,
124.21violations that create a specific danger to the public health, safety, or environment;
124.22    (b) the employee is requested by a public body or office to participate in an
124.23investigation, hearing, inquiry;
124.24    (c) the employee refuses an employer's order to perform an action that the employee
124.25has an objective basis in fact to believe violates any state or federal law or rule or
124.26regulation adopted pursuant to law which violation the employee reasonably believes
124.27is a matter of public concern, including, but not limited to, violations that create a
124.28specific danger to the public health, safety, or environment, and the employee informs the
124.29employer that the order is being refused for that reason; or
124.30    (d) the employee, in good faith, reports a situation in which the quality of health care
124.31services provided by a health care facility, organization, or health care provider violates a
124.32standard established by federal or state law or a professionally recognized national clinical
124.33or ethical standard and potentially places the public at risk of harm.;
124.34    (e) a public employee refuses to alter, dilute, or suppress the objective representation
124.35or communication of scientific or technical data or findings, including but not limited to,
125.1findings of economic or environmental impact, or findings indicating consequences for
125.2the public's health or safety; or
125.3    (f) a public employee communicates the findings of a scientific or technical study
125.4that the employee, in good faith, believes to be truthful and accurate, including reports to a
125.5governmental body or law enforcement official.
125.6The disclosures protected pursuant to this section do not authorize the disclosure of trade
125.7secret information otherwise protected by law.

125.8    Sec. 17. [181.9325] USE OF AUTHORITY TO INFLUENCE OR INTERFERE
125.9WITH DISCLOSURE OF INFORMATION.
125.10    (a) A public employer may not directly or indirectly use or attempt to use the
125.11employer's official authority or influence for the purpose of intimidating, threatening,
125.12coercing, or attempting to intimidate, threaten, or coerce any person for the purpose of
125.13interfering with the rights described in section 181.932, or for the purpose of persuading
125.14the person to waive or disclaim any other legal rights related to the person's employment.
125.15    (b) For purposes of this section, "use of official authority or influence" includes:
125.16promising to confer, or conferring, any benefit; effecting, or threatening to effect, any
125.17reprisal; or taking, or directing others to take, or recommending, processing, or approving,
125.18any personnel action, including but not limited to appointment, promotion, transfer,
125.19assignment, performance evaluation, suspension, or other disciplinary action.

125.20    Sec. 18. Minnesota Statutes 2006, section 181.935, is amended to read:
125.21181.935 INDIVIDUAL REMEDIES; PENALTY.
125.22    (a) In addition to any remedies otherwise provided by law, an employee injured
125.23by a violation of section 181.932 or 181.9325 may bring a civil action to recover any
125.24and all damages recoverable at law, together with costs and disbursements, including
125.25reasonable attorney's fees, and may receive such injunctive and other equitable relief as
125.26determined by the court.
125.27    (b) An employer who failed to notify, as required under section 181.933 or 181.934,
125.28an employee injured by a violation of section 181.932 is subject to a civil penalty of $25
125.29per day per injured employee not to exceed $750 per injured employee.

125.30    Sec. 19. [181.936] REPRISALS FOR DISCLOSURE OF IMPROPER
125.31GOVERNMENTAL ACTIVITIES; COMPLAINT PROCEDURE; PENALTIES.
125.32    (a) A public employee or applicant for public employment who files a written
125.33complaint with the employee's or applicant's supervisor, manager, or the appointing
126.1power alleging actual or attempted acts of reprisal, retaliation, threats, coercion, or
126.2similar improper acts prohibited by section 181.9325, may also file a copy of the written
126.3complaint with the commissioner of labor and industry, together with a sworn statement
126.4that the contents of the written complaint are true, or are believed by the affiant to be true,
126.5under penalty of perjury. The complaint filed with the commissioner shall be filed within
126.612 months of the most recent act of reprisal complained about.
126.7    (b) Any person who intentionally engages in acts of reprisal, retaliation, threats,
126.8coercion, or similar acts against a public employee or applicant for public employment
126.9for having made a protected disclosure under section 181.932, is subject to a fine not to
126.10exceed $10,000 and imprisonment in the county jail for a period not to exceed one year.
126.11    (c) In addition to all other penalties provided by law, any person who intentionally
126.12engages in acts of reprisal, retaliation, threats, coercion, or similar acts against a public
126.13employee or applicant for public employment for having made a protected disclosure shall
126.14be liable in an action for damages brought against the person by the injured party. Punitive
126.15damages may be awarded by the court where the acts of the offending party are proven to
126.16be malicious. Where liability has been established, the injured party shall also be entitled
126.17to reasonable attorney fees as provided by law. However, any action for damages shall not
126.18be available to the injured party unless the injured party has first filed a complaint with the
126.19commissioner of labor and industry under paragraph (a), and the department has issued, or
126.20failed to issue, findings under section 177.275.
126.21    (d) This section is not intended to prevent an appointing power, manager, or
126.22supervisor from taking, directing others to take, recommending, or approving any
126.23personnel action or from taking or failing to take a personnel action with respect to any
126.24public employee or applicant for public employment if the appointing power, manager, or
126.25supervisor reasonably believes any action or inaction is justified on the basis of evidence
126.26separate and apart from the fact that the person has made a protected disclosure under
126.27section 181.932.
126.28    (e) In any civil action or administrative proceeding, once it has been demonstrated
126.29by a preponderance of evidence that an activity protected by this section and sections
126.301 to 7 was a contributing factor in the alleged retaliation against a former, current, or
126.31prospective employee, the burden of proof shall be on the supervisor, manager, or
126.32appointing power to demonstrate by clear and convincing evidence that the alleged action
126.33would have occurred for legitimate, independent reasons even if the employee had not
126.34engaged in protected disclosures or refused an illegal order. If the supervisor, manager,
126.35or appointing power fails to meet this burden of proof in an adverse action against the
126.36employee in any administrative review, challenge, or adjudication in which retaliation
127.1has been demonstrated to be a contributing factor, the employee shall have a complete
127.2affirmative defense in the adverse action.
127.3    (f) Nothing in this section and sections 1 to 7 shall be deemed to diminish the rights,
127.4privileges, or remedies of any employee under any other federal or state law or under any
127.5employment contract or collective bargaining agreement.

127.6    Sec. 20. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:
127.7    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who,
127.8during some part of the period of the sales representative agreement:
127.9    (1) is a resident of Minnesota or maintains that person's principal place of business
127.10in Minnesota; or
127.11    (2) whose geographical territory specified in the sales representative agreement
127.12includes part or all of Minnesota.
127.13    (b) To be effective, any demand for arbitration under subdivision 5 must be made
127.14in writing and delivered to the principal on or before one year after the effective date of
127.15the termination of the agreement.
127.16    (c) A provision in any contract between a sales representative dealing in plumbing
127.17equipment or supplies and a principal purporting to waive any provision of this act,
127.18whether by express waiver or by a provision stipulating that the contract is subject to the
127.19laws of another state, shall be void.

127.20    Sec. 21. Minnesota Statutes 2006, section 326.37, subdivision 1, is amended to read:
127.21    Subdivision 1. Rules. The state commissioner of health Plumbing Board may, by
127.22rule, prescribe minimum standards which shall be uniform, and which standards shall
127.23thereafter be effective for all new plumbing installations, including additions, extensions,
127.24alterations, and replacements connected with any water or sewage disposal system owned
127.25or operated by or for any municipality, institution, factory, office building, hotel, apartment
127.26building, or any other place of business regardless of location or the population of the
127.27city or town in which located. Notwithstanding the provisions of Minnesota Rules, part
127.284715.3130, as they apply to review of plans and specifications, the commissioner may
127.29allow plumbing construction, alteration, or extension to proceed without approval of the
127.30plans or specifications by the commissioner.
127.31    Except for powers granted to the Plumbing Board, the commissioner of labor and
127.32industry shall administer the provisions of sections 326.37 to 326.45 and for such purposes
127.33may employ plumbing inspectors and other assistants.

128.1    Sec. 22. [326.372] PLUMBING BOARD.
128.2    Subdivision 1. Composition. (a) The Plumbing Board shall consist of 12 voting
128.3members who must be residents of the state, appointed by the governor, and confirmed
128.4by the senate. The commissioner of labor and industry or the commissioner's designee
128.5shall be a voting member. The first appointed board members shall serve an initial term
128.6of four years, except where designated otherwise. The governor shall then reappoint the
128.7current members or appoint replacement members, all or in part, to subsequent three-year
128.8terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies
128.9occurring with less than six months time remaining in the term shall be filled for the
128.10existing term and the following three-year term. Of the 11 appointed members, the
128.11composition shall be as follows:
128.12    (1) two members shall be municipal plumbing inspectors, one from the seven-county
128.13metro area and one from greater Minnesota;
128.14    (2) one member shall be a licensed mechanical engineer;
128.15    (3) two members serving an initial term of three years shall be plumbing contractors
128.16or the representative of the contractor, engaged in a commercial scope of plumbing
128.17contracting, one from the metropolitan area and one from greater Minnesota;
128.18    (4) two members serving an initial term of three years shall be plumbing contractors
128.19or their representatives, engaged in the residential scope of plumbing contracting, one
128.20from the metro area and one from greater Minnesota;
128.21    (5) two members serving an initial term of two years shall be plumbing
128.22journeypersons engaged in a commercial scope of plumbing systems installation, one
128.23from the metro area and one from greater Minnesota; and
128.24    (6) two members serving an initial term of two years shall be plumbing
128.25journeypersons engaged in a residential scope of plumbing systems installation, one from
128.26the metro area and one from greater Minnesota.
128.27    (b) Except for the licensed mechanical engineer, all persons appointed to the
128.28council must possess a current Minnesota plumbing license and maintain the license for
128.29the duration of their term.
128.30    Subd. 2. Powers. (a) The board shall have the power to:
128.31    (1) elect its chair;
128.32    (2) specify the plumbing code that must be followed in this state;
128.33    (3) maintain a review process to make determinations regarding any complaints,
128.34code amendments, code compliance, and code clarifications filed with the board;
128.35    (4) adopt rules necessary for the regulation and licensing of contractors,
128.36journeypersons, apprentices, and other persons engaged in the design, installation, and
129.1alteration of plumbing systems that would include the issuing, renewing, revoking,
129.2refusing to renew, and suspending a plumbing license, except for persons licensed under
129.3sections 326.02 to 326.15;
129.4    (5) adopt rules necessary for continuing education for individuals regulated and
129.5licensed under this section;
129.6    (6) make recommendations to the commissioner regarding educational requirements
129.7for plumbing inspectors; and
129.8    (7) pay expenses deemed necessary in the performance of board duties, including:
129.9    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18,
129.10subdivision 2; and
129.11    (ii) per diem and expenses for its members as provided in section 15.0575,
129.12subdivision 3.
129.13    (b) Requests under the review process in paragraph (a), clause (3), may originate
129.14with the municipal inspectors, the plumbing contractors or their employees, and other
129.15persons engaged in the design, installation, and alteration of plumbing systems. The board
129.16shall make its findings known to all parties and the commissioner of labor and industry
129.17within the time period specified by the board.
129.18    Subd. 3. Fees and finances. The board shall submit an annual budget to the
129.19commissioner of labor and industry. The commissioner shall collect fees under section
129.20326.42 necessary for the operation and continuance of the board. The commissioner is
129.21responsible for the enforcement of the codes and licensing requirements determined by
129.22the board. The board shall set the fees for licenses and certification under this section.
129.23The commissioner of finance shall make a quarterly certification of the amount necessary
129.24to pay expenses required for operation of the board under subdivision 2, paragraph (a),
129.25clause (6). The certified amount is appropriated to the board for those purposes from
129.26the fees collected under section 326.42.

129.27    Sec. 23. Minnesota Statutes 2006, section 326.38, is amended to read:
129.28326.38 LOCAL REGULATIONS.
129.29    Any city having a system of waterworks or sewerage, or any town in which reside
129.30over 5,000 people exclusive of any statutory cities located therein, or the metropolitan
129.31airports commission, may, by ordinance, adopt local regulations providing for plumbing
129.32permits, bonds, approval of plans, and inspections of plumbing, which regulations are
129.33not in conflict with the plumbing standards on the same subject prescribed by the state
129.34commissioner of health Plumbing Board. No city or such town shall prohibit plumbers
129.35licensed by the state commissioner of health labor and industry from engaging in or
130.1working at the business, except cities and statutory cities which, prior to April 21, 1933,
130.2by ordinance required the licensing of plumbers. No city or town may require a license
130.3for persons performing building sewer or water service installation who have completed
130.4pipe laying training as prescribed by the commissioner of labor and industry. Any city
130.5by ordinance may prescribe regulations, reasonable standards, and inspections and grant
130.6permits to any person, firm, or corporation engaged in the business of installing water
130.7softeners, who is not licensed as a master plumber or journeyman plumber by the state
130.8commissioner of health labor and industry, to connect water softening and water filtering
130.9equipment to private residence water distribution systems, where provision has been
130.10previously made therefor and openings left for that purpose or by use of cold water
130.11connections to a domestic water heater; where it is not necessary to rearrange, make any
130.12extension or alteration of, or addition to any pipe, fixture or plumbing connected with
130.13the water system except to connect the water softener, and provided the connections so
130.14made comply with minimum standards prescribed by the state commissioner of health
130.15Plumbing Board.

130.16    Sec. 24. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:
130.17    Subdivision 1. License required; master and journeyman plumbers. In any city
130.18now or hereafter having 5,000 or more population, according to the last federal census,
130.19and having a system of waterworks or sewerage, (a) No person, firm, or corporation shall
130.20engage in or work at the business of a master plumber or, restricted master plumber,
130.21journeyman plumber, and restricted journeyman plumber unless licensed to do so by the
130.22state commissioner of health labor and industry. A license is not required for persons
130.23performing building sewer or water service installation who have completed pipe laying
130.24training as prescribed by the commissioner of labor and industry. A master plumber may
130.25also work as a journeyman plumber, a restricted journeyman plumber, and a restricted
130.26master plumber. A journeyman plumber may also work as a restricted journeyman
130.27plumber. Anyone not so licensed may do plumbing work which complies with the
130.28provisions of the minimum standard prescribed by the state commissioner of health
130.29Plumbing Board on premises or that part of premises owned and actually occupied by the
130.30worker as a residence, unless otherwise forbidden to do so by a local ordinance.
130.31    In any such city (b) No person, firm, or corporation shall engage in the business of
130.32installing plumbing nor install plumbing in connection with the dealing in and selling
130.33of plumbing material and supplies unless at all times a licensed master plumber, or in
130.34cities and towns with a population of fewer than 5,000 according to the federal census a
131.1restricted master plumber, who shall be responsible for proper installation, is in charge
131.2of the plumbing work of the person, firm, or corporation.
131.3    The Department of Health Plumbing Board shall prescribe rules, not inconsistent
131.4herewith, for the examination and licensing of plumbers.

131.5    Sec. 25. Minnesota Statutes 2006, section 326.401, subdivision 2, is amended to read:
131.6    Subd. 2. Journeyman exam. A plumber's apprentice who has completed four years
131.7of practical plumbing experience is eligible to take the journeyman plumbing examination.
131.8Up to 24 months of practical plumbing experience prior to registration as an apprentice
131.9may be applied to the four-year experience requirement. However, none of this practical
131.10plumbing experience may be applied if the person did not have any practical plumbing
131.11experience in the 12-month period immediately prior to registration. The commissioner
131.12Plumbing Board may adopt rules to evaluate whether the person's past practical plumbing
131.13experience is applicable in preparing for the journeyman's examination. If two years
131.14after completing the training the person has not taken the examination, the four years
131.15of experience shall be forfeited.
131.16    The commissioner may allow an extension of the two-year period for taking the
131.17exam for cases of hardship or other appropriate circumstances.

131.18    Sec. 26. [326.402] RESTRICTED PLUMBER LICENSE.
131.19    Subdivision 1. Licensure. The commissioner of labor and industry shall grant a
131.20restricted journeyman or master plumber license to an individual if:
131.21    (1) the individual completes an application with information required by the
131.22commissioner of labor and industry;
131.23    (2) the completed application is accompanied by a fee of $90;
131.24    (3) the commissioner of labor and industry receives the completed application and
131.25fee before January 1, 2008;
131.26    (4) the completed application demonstrates that the applicant has had at least two
131.27years for a restricted journeyman plumber license or four years for a restricted master
131.28plumber license of practical plumbing experience in the plumbing trade prior to the
131.29application; and
131.30    (5) during the entire time for which the applicant is claiming experience in
131.31contracting for plumbing work under clause (4), the applicant was in compliance with all
131.32applicable requirements of section 326.40.
132.1    Subd. 2. Use of license. A restricted master plumber and restricted journeyman
132.2plumber may engage in the plumbing trade in all areas of the state except in cities and
132.3towns with a population of more than 5,000 according to the federal census.
132.4    Subd. 3. Application period. Applications for restricted master plumber and
132.5restricted journeyman plumber licenses must be submitted to the commissioner prior
132.6to January 1, 2008.
132.7    Subd. 4. Renewal; use period for license. A restricted master plumber and
132.8restricted journeyman plumber license must be renewed annually for as long as that
132.9licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
132.10restricted journeyman plumber license within 12 months after the expiration date will
132.11result in permanent forfeiture of the restricted master plumber and restricted journeyman
132.12plumber license.
132.13    Subd. 5. Prohibition of transference. A restricted master plumber and restricted
132.14journeyman plumber license may not be transferred or sold to any other person.
132.15    Subd. 6. Bond; insurance. A restricted master plumber licensee is subject to the
132.16bond and insurance requirements of section 326.40, subdivision 2, unless the exemption
132.17provided by section 326.40, subdivision 3, applies.
132.18    Subd. 7. Fee. The annual fee for the restricted master plumber and restricted
132.19journeyman plumber licenses is the same fee as for a master or journeyman plumber
132.20license, respectively.

132.21    Sec. 27. Minnesota Statutes 2006, section 326.405, is amended to read:
132.22326.405 RECIPROCITY WITH OTHER STATES.
132.23    The commissioner of health may license without examination, upon payment of the
132.24required fee, nonresident applicants who are licensed under the laws of a state having
132.25standards for licensing plumbers which the commissioner determines are substantially
132.26equivalent to the standards of this state if the other state grants similar privileges to
132.27Minnesota residents duly licensed in this state. The commissioner may issue a temporary
132.28license without examination, upon payment of the required fee, nonresident applicants
132.29who are licensed under the laws of a state having standards for licensing which the
132.30commissioner determines are substantially equivalent to the standards of this state if
132.31the other state grants similar privileges to Minnesota residents duly licensed in this
132.32state. Applicants who receive a temporary license under this section may acquire an
132.33aggregate of 24 months of experience before they have to apply and pass the licensing
132.34examination. Applicants must register with the commissioner of labor and industry and
133.1the commissioner shall set a fee for a temporary license. Applicants have five years in
133.2which to comply with this section.

133.3    Sec. 28. Minnesota Statutes 2006, section 326.42, subdivision 1, is amended to read:
133.4    Subdivision 1. Application. Applications for plumber's license shall be made to the
133.5state commissioner of health labor and industry, with fee. Unless the applicant is entitled
133.6to a renewal, the applicant shall be licensed by the state commissioner of health labor and
133.7industry only after passing a satisfactory examination administered by the examiners
133.8commissioner of labor and industry, based upon rules adopted by the Plumbing Board
133.9showing fitness. Examination fees for both journeyman and master plumbers shall be in
133.10an amount prescribed by the state commissioner of health labor and industry pursuant to
133.11section 144.122. Upon being notified that of having successfully passed the examination
133.12for original license the applicant shall submit an application, with the license fee herein
133.13provided. License fees shall be in an amount prescribed by the state commissioner of
133.14health labor and industry pursuant to section 144.122. Licenses shall expire and be
133.15renewed as prescribed by the commissioner pursuant to section 144.122.

133.16    Sec. 29. Minnesota Statutes 2006, section 341.28, subdivision 2, is amended to read:
133.17    Subd. 2. Regulatory authority; tough person contests. All tough person contests,
133.18including amateur tough person contests, are subject to this chapter. All tough person
133.19contests are subject to American Boxing Commission (ABC) rules. Every contestant
133.20in a tough person contest shall have a physical examination prior to their bouts. Every
133.21contestant in a tough person contest shall wear padded gloves that weigh at least 12
133.22ounces. All tough person bouts are limited to two-minute rounds and a maximum of four
133.23total rounds. Officials at tough person bouts shall be licensed under this chapter.

133.24    Sec. 30. Minnesota Statutes 2006, section 341.28, is amended by adding a subdivision
133.25to read:
133.26    Subd. 3. Regulatory authority; similar sporting events. All mixed martial arts,
133.27ultimate fight contests, and similar sporting events are subject to this chapter.

133.28    Sec. 31. Minnesota Statutes 2006, section 341.32, subdivision 2, is amended to read:
133.29    Subd. 2. Expiration and renewal. A license expires December 31 at midnight in
133.30the year of its issuance issued after the effective date of this act is valid for one year from
133.31the date it is issued and may be renewed by filing an application for renewal with the
133.32commission and payment of the license fee. An application for a license and renewal of a
134.1license must be on a form provided by the commission. There is a 30-day grace period
134.2during which a license may be renewed if a late filing penalty fee equal to the license fee
134.3is submitted with the regular license fee. A licensee that files late shall not conduct any
134.4activity regulated by this chapter until the commission has renewed the license. If the
134.5licensee fails to apply to the commission within the 30-day grace period, the licensee must
134.6apply for a new license under subdivision 1.

134.7    Sec. 32. Minnesota Statutes 2006, section 341.321, is amended to read:
134.8341.321 FEE SCHEDULE.
134.9    (a) The fee schedule for licenses issued by the Minnesota Boxing Commission
134.10is as follows:
134.11    (1) referees, $35 $45 for each initial license and each renewal;
134.12    (2) promoters, $400 for each initial license and each renewal;
134.13    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
134.14    (4) trainers, $35 $45 for each initial license and each renewal;
134.15    (5) ring announcers, $25 $45 for each initial license and each renewal;
134.16    (6) boxers' seconds, $25 $45 for each initial license and each renewal;
134.17    (7) timekeepers, $25 $45 for each initial license and each renewal; and
134.18    (8) boxers, $35 $45 for each initial license and each renewal.;
134.19    (9) managers, $45 for each initial license and each renewal; and
134.20    (10) ringside physicians, $45 for each initial license and each renewal.
134.21    (b) The commission shall establish and assess an event fee for each sporting event.
134.22The event fee is set at a minimum of $1,500 per event or a percentage of the ticket sales as
134.23determined by the commission when the sporting event is scheduled.
134.24    (c) All fees collected by the Minnesota Boxing Commission must be deposited in
134.25the Boxing Commission account in the special revenue fund.

134.26    Sec. 33. REPEALER.
134.27Minnesota Statutes 2006, section 326.45, is repealed.

134.28ARTICLE 9
134.29HIGH PRESSURE PIPING

134.30    Section 1. Minnesota Statutes 2006, section 326.46, is amended to read:
134.31326.46 SUPERVISION OF HIGH PRESSURE PIPING.
135.1    The Department of Labor and Industry shall supervise all high pressure piping
135.2used on all projects in this state, and may prescribe minimum standards which shall be
135.3uniform under rules adopted by the board.
135.4    The department shall employ inspectors and other assistants to carry out the
135.5provisions of sections 326.46 to 326.52.

135.6    Sec. 2. Minnesota Statutes 2006, section 326.461, is amended by adding a subdivision
135.7to read:
135.8    Subd. 1a. Board. "Board" means the Board of High Pressure Piping Systems.

135.9    Sec. 3. Minnesota Statutes 2006, section 326.47, subdivision 2, is amended to read:
135.10    Subd. 2. Permissive municipal regulation. A municipality may, by ordinance,
135.11provide for the inspection of high pressure piping system materials and construction, and
135.12provide that it shall not be constructed or installed except in accordance with minimum
135.13state standards. The authority designated by the ordinance for issuing high pressure piping
135.14permits and assuring compliance with state standards must report to the Department of
135.15Labor and Industry all violations of state high pressure piping standards.
135.16    A municipality may not adopt an ordinance with high pressure piping standards that
135.17does not conform to the uniform standards prescribed by the Department of Labor and
135.18Industry board. The Department of Labor and Industry board shall specify by rule the
135.19minimum qualifications for municipal inspectors.

135.20    Sec. 4. Minnesota Statutes 2006, section 326.47, subdivision 6, is amended to read:
135.21    Subd. 6. Filing and inspection fees. The Department of Labor and Industry
135.22must charge a filing fee set by the commissioner board under section 16A.1285 for all
135.23applications for permits to construct or install high pressure piping systems. The fee for
135.24inspection of high pressure piping system construction or installation shall be set by the
135.25commissioner board under section 16A.1285. This subdivision does not apply where a
135.26permit is issued by a municipality complying with subdivision 2.

135.27    Sec. 5. [326.471] BOARD OF HIGH PRESSURE PIPING SYSTEMS.
135.28    Subdivision 1. Composition. (a) The Board of High Pressure Piping Systems shall
135.29consist of 12 members who must be residents of the state, appointed by the governor, and
135.30confirmed by the senate. The commissioner of the Department of Labor and Industry or
135.31the commissioner's designee shall be a voting member. The first appointed board members
135.32shall serve an initial term of four years, except where designated otherwise. The governor
136.1shall then reappoint the current members or appoint replacement members, all or in part, to
136.2subsequent three-year terms. Midterm vacancies shall be filled for the remaining portion
136.3of the term. Vacancies occurring with less than six months time remaining in the term
136.4shall be filled for the existing term and the following three-year term. Of the 11 appointed
136.5members, the composition shall be as follows:
136.6    (1) one member shall be a high pressure piping inspector;
136.7    (2) one member shall be a licensed mechanical engineer;
136.8    (3) one member shall be a representative of the piping industry;
136.9    (4) four members shall be high pressure piping contractors or their representatives,
136.10engaged in the scope of high pressure piping, two from the metro area and two from
136.11greater Minnesota;
136.12    (5) two members shall be high pressure piping journeypersons engaged in the scope
136.13of high pressure piping systems installation, one from the metro area and one from greater
136.14Minnesota; and
136.15    (6) two members shall be representatives from utility companies in Minnesota
136.16who shall serve an initial term of two years.
136.17    (b) Except for the licensed mechanical engineer and the members from utilities
136.18companies, all persons appointed to the board must possess a current license or
136.19competency credential required for contractors and persons engaged in the design,
136.20installation, alteration, and inspection of high pressure piping systems.
136.21    Subd. 2. Powers. (a) The board shall have the power to:
136.22    (1) elect its chair;
136.23    (2) specify the high pressure piping code that must be followed in Minnesota;
136.24    (3) maintain an appeals committee to make determinations regarding any complaints,
136.25code amendments, code compliance, and code clarifications filed with the board;
136.26    (4) adopt rules necessary for the regulation and licensing of contractors,
136.27journeypersons, trainees, and persons engaged in the design, installation, alteration, and
136.28inspection of high pressure piping systems, except for persons licensed under sections
136.29326.02 to 326.15;
136.30    (5) adopt rules necessary for continuing education for individuals regulated and
136.31licensed under this section; and
136.32    (6) pay expenses deemed necessary in the performance of board duties, including:
136.33    (i) rent, utilities, and supplies in the manner and amount specified in section 43A.18,
136.34subdivision 2; and
136.35    (ii) per diem and expenses for its members as provided in section 15.0575,
136.36subdivision 3.
137.1    (b) Complaints filed under this section may originate with high pressure piping
137.2inspectors, contractors, or their employees, or other persons engaged in the design,
137.3installation, and alteration of a high pressure piping system. The board shall make their
137.4findings known to all parties and the commissioner of the Department of Labor and
137.5Industry within the time period specified by the board.
137.6    Subd. 3. Fee and finances. The board shall submit an annual budget to the
137.7commissioner of the Department of Labor and Industry. The commissioner shall collect
137.8fees under section 326.47, subdivision 6, necessary for the operation and continuance
137.9of the board. The commissioner is responsible for the enforcement of the codes and
137.10licensing requirements determined by the board. The board shall set the fees for licenses
137.11and certification under this section and for all high pressure piping system permits and
137.12submit the fee structure to the commissioner of labor and industry. The commissioner
137.13of finance shall make a quarterly certification of the amount necessary to pay expenses
137.14required for operation of the board under subdivision 2, paragraph (a), clause (6). The
137.15certified amount is appropriated to the board for those purposes from the fees collected
137.16under section 326.50.

137.17    Sec. 6. Minnesota Statutes 2006, section 326.48, subdivision 1, is amended to read:
137.18    Subdivision 1. License required; rules; time credit. No person shall engage in
137.19or work at the business of a contracting pipefitter unless issued an individual contracting
137.20pipefitter license to do so by the Department of Labor and Industry under rules prescribed
137.21by the board. No license shall be required for repairs on existing installations. No
137.22person shall engage in or work at the business of journeyman pipefitter unless issued an
137.23individual journeyman pipefitter competency license to do so by the Department of Labor
137.24and Industry under rules prescribed by the board. A person possessing an individual
137.25contracting pipefitter competency license may also work as a journeyman pipefitter.
137.26    No person, partnership, firm, or corporation shall install high pressure piping, nor
137.27install high pressure piping in connection with the dealing in and selling of high pressure
137.28pipe material and supplies, unless, at all times, a person possessing a contracting pipefitter
137.29individual competency license or a journeyman pipefitter individual competency license is
137.30responsible for the high pressure pipefitting work conducted by the person, partnership,
137.31firm, or corporation being in conformity with Minnesota Statutes and Minnesota Rules.
137.32    The Department of Labor and Industry board shall prescribe rules, not inconsistent
137.33herewith, for the examination and individual competency licensing of contracting
137.34pipefitters and journeyman pipefitters and for issuance of permits by the department and
137.35municipalities for the installation of high pressure piping.
138.1    An employee performing the duties of inspector for the Department of Labor and
138.2Industry in regulating pipefitting shall not receive time credit for the inspection duties
138.3when making an application for a license required by this section.

138.4    Sec. 7. Minnesota Statutes 2006, section 326.48, subdivision 2, is amended to read:
138.5    Subd. 2. High pressure pipefitting business license. Before obtaining a permit
138.6for high pressure piping work, a person, partnership, firm, or corporation must obtain or
138.7utilize a business with a high pressure piping business license.
138.8    A person, partnership, firm, or corporation must have at all times as a full-time
138.9employee at least one individual holding an individual contracting pipefitter competency
138.10license. Only full-time employees who hold individual contracting pipefitter licenses
138.11are authorized to obtain high pressure piping permits in the name of the business. The
138.12individual contracting pipefitter competency license holder can be the employee of only
138.13one high pressure piping business at a time.
138.14    To retain its business license without reapplication, a person, partnership, firm, or
138.15corporation holding a high pressure piping business license that ceases to employ a person
138.16holding an individual contracting pipefitter competency license shall have 60 days from
138.17the last day of employment of its previous individual contracting pipefitter competency
138.18license holder to employ another license holder. The Department of Labor and Industry
138.19must be notified no later than five days after the last day of employment of the previous
138.20license holder.
138.21    No high pressure pipefitting work may be performed during any period when the
138.22high pressure pipefitting business does not have an individual contracting pipefitter
138.23competency license holder on staff. If a license holder is not employed within 60 days,
138.24the pipefitting business license shall lapse.
138.25    The Department of Labor and Industry board shall prescribe by rule procedures for
138.26application for and issuance of business licenses and fees.

138.27    Sec. 8. Minnesota Statutes 2006, section 326.48, is amended by adding a subdivision
138.28to read:
138.29    Subd. 6. Reciprocity with other states. The commissioner may issue a temporary
138.30license without examination, upon payment of the required fee, nonresident applicants
138.31who are licensed under the laws of a state having standards for licensing which the
138.32commissioner determines are substantially equivalent to the standards of this state if
138.33the other state grants similar privileges to Minnesota residents duly licensed in this
138.34state. Applicants who receive a temporary license under this section may acquire an
139.1aggregate of 24 months of experience before they have to apply and pass the licensing
139.2examination. Applicants must register with the commissioner of labor and industry and
139.3the commissioner shall set a fee for a temporary license. Applicants have five years in
139.4which to comply with this section.

139.5    Sec. 9. Minnesota Statutes 2006, section 326.50, is amended to read:
139.6326.50 APPLICATION; FEES.
139.7    Application for an individual contracting pipefitter competency or an individual
139.8journeyman pipefitter competency license shall be made to the Department of Labor and
139.9Industry, with fees. The applicant shall be licensed only after passing an examination
139.10administered by the Department of Labor and Industry in accordance with rules adopted
139.11by the board.

139.12    Sec. 10. Minnesota Statutes 2006, section 326.51, is amended to read:
139.13326.51 DEPARTMENT MAY REVOKE LICENSES.
139.14    The department board may revoke or suspend, for cause, any license obtained
139.15through error or fraud, or if the licensee is shown to be incompetent, or for a violation
139.16of any of its rules and regulations applicable to high pressure pipefitting work. The
139.17licensee shall have notice, in writing, enumerating the charges, and be entitled to a hearing
139.18on at least ten days' notice, with the right to produce testimony. The hearing shall be
139.19held pursuant to chapter 14. The commissioner board shall issue a final order based on
139.20testimony and the record at hearing. One year from the date of revocation application
139.21may be made for a new license.

139.22    Sec. 11. Minnesota Statutes 2006, section 326.52, is amended to read:
139.23326.52 DEPOSIT OF FEES.
139.24    All fees received under sections 326.46 to 326.52 shall be deposited by the
139.25Department of Labor and Industry to the credit of the general fund in the state treasury.
139.26The salaries and per diem of the inspectors and examiners hereinbefore provided, their
139.27expenses, and all incidental expenses of the department and board in carrying out the
139.28provisions of sections 326.46 to 326.52 shall be paid from the appropriations made to the
139.29Department of Labor and Industry. The commissioner board by rule shall set the amount
139.30of the fees at a level that approximates, to the greatest extent possible, the salaries, per
139.31diem, and incidental expenses of the department.

140.1    Sec. 12. TRANSFER OF AUTHORITY; BOARD OF HIGH PRESSURE PIPING
140.2SYSTEMS.
140.3    The authority of the commissioner of labor and industry to adopt rules relating to
140.4high pressure piping systems is transferred to the Board of High Pressure Piping Systems.
140.5Licenses and permits currently in effect remain in effect according to their terms unless
140.6affected by board action. Rules adopted by the commissioner of labor and industry remain
140.7in effect until amended or repealed by the board. The commissioner of administration
140.8may not use the authority under Minnesota Statutes, section 16B.37, to modify transfers of
140.9authority in this act.

140.10    Sec. 13. FIRST MEETING; APPOINTMENTS FOR BOARD OF HIGH
140.11PRESSURE PIPING SYSTEMS.
140.12    The governor must complete the appointments required by Minnesota Statutes,
140.13section 326.471, no later than July 1, 2007. The commissioner of labor and industry
140.14shall convene the first meeting of the Board of High Pressure Piping Systems no later
140.15than September 1, 2007.

140.16    Sec. 14. TRANSFER OF AUTHORITY; PLUMBING BOARD.
140.17    The authority of the commissioners of health and labor and industry to adopt rules
140.18relating to plumbers is transferred to the Plumbing Board. Licenses and permits currently
140.19in effect remain in effect according to their terms unless affected by board action. Rules
140.20adopted by the commissioner of health or labor and industry remain in effect until amended
140.21or repealed by the board. The commissioner of administration may not use the authority
140.22under Minnesota Statutes, section 16B.37, to modify the transfers of authority in this act.

140.23    Sec. 15. FIRST MEETING; APPOINTMENTS FOR PLUMBING BOARD.
140.24    The governor must complete the appointments required by Minnesota Statutes,
140.25section 326.372, no later than July 1, 2007. The commissioner of labor and industry shall
140.26convene the first meeting of the Plumbing Board no later than September 1, 2007.

140.27ARTICLE 10
140.28IRON RANGE RESOURCES AND REHABILITATION BOARD

140.29    Section 1. [270.99] HOCKEY HERITAGE SURCHARGE.
140.30    Subdivision 1. Imposition. A surcharge of 25 cents is imposed on the sale of every
140.31ticket to an NCAA Division I men's hockey event in the state.
141.1    Subd. 2. Collection; remittance. The surcharge imposed in this section shall be
141.2collected by all sellers of these tickets with nexus in the state of Minnesota. The seller
141.3shall report the surcharge on a return proscribed by the commissioner of revenue and
141.4shall remit the surcharge with the return.
141.5    Subd. 3. Administration. Unless specifically provided otherwise in this section, the
141.6audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and
141.7administrative provisions in this chapter and chapter 289A that are applicable to taxes
141.8imposed under chapter 297A apply to the surcharge imposed under this section.
141.9    Subd. 4. Deposit of revenues. The commissioner of revenue shall deposit all
141.10revenues, including penalty and interest, derived from the surcharge imposed in this
141.11section in the hockey surcharge account in the special revenue fund. The amount deposited
141.12under this section is appropriated to the Iron Range Resources and Rehabilitation Board
141.13for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame
141.14Museum provided that it continues to operate in the city. Payments under this section for
141.15the Hockey Hall of Fame Museum are in addition to and must not be used to supplant
141.16funding under section 298.28, subdivision 9c.

141.17    Sec. 2. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:
141.18    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby
141.19created the Iron Range Resources and Rehabilitation Board, consisting of 13 ten members,
141.20five of whom are state senators appointed by the Subcommittee on Committees of the
141.21Rules Committee of the senate, and five of whom are representatives, appointed by the
141.22speaker of the house of representatives. The remaining members shall be appointed one
141.23each by the senate majority leader, the speaker of the house of representatives, and the
141.24governor and must be nonlegislators who reside in a taconite assistance area as defined in
141.25section 273.1341. The members shall be appointed in January of every odd-numbered
141.26year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and
141.27shall serve until January of the next odd-numbered year. Vacancies on the board shall be
141.28filled in the same manner as the original members were chosen. At least a majority of
141.29the legislative members of the board shall be elected from state senatorial or legislative
141.30districts in which over 50 percent of the residents reside within a taconite assistance area
141.31as defined in section 273.1341. All expenditures and projects made by the commissioner
141.32of Iron Range resources and rehabilitation shall be consistent with the priorities
141.33established in subdivision 8 and shall first be submitted to the Iron Range Resources and
141.34Rehabilitation Board for approval by a majority of the board of expenditures and projects
141.35for rehabilitation purposes as provided by this section, and the method, manner, and time
142.1of payment of all funds proposed to be disbursed shall be first approved or disapproved by
142.2the board. The board shall biennially make its report to the governor and the legislature on
142.3or before November 15 of each even-numbered year. The expenses of the board shall be
142.4paid by the state from the funds raised pursuant to this section.

142.5    Sec. 3. Minnesota Statutes 2006, section 298.227, is amended to read:
142.6298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
142.7    An amount equal to that distributed pursuant to each taconite producer's taxable
142.8production and qualifying sales under section 298.28, subdivision 9a, shall be held by
142.9the Iron Range Resources and Rehabilitation Board in a separate taconite economic
142.10development fund for each taconite and direct reduced ore producer. Money from the
142.11fund for each producer shall be released by the commissioner after review by a joint
142.12committee consisting of an equal number of representatives of the salaried employees and
142.13the nonsalaried production and maintenance employees of that producer. The District 11
142.14director of the United States Steelworkers of America, on advice of each local employee
142.15president, shall select the employee members. In nonorganized operations, the employee
142.16committee shall be elected by the nonsalaried production and maintenance employees.
142.17The review must be completed no later than six months after the producer presents a
142.18proposal for expenditure of the funds to the committee. The funds held pursuant to this
142.19section may be released only for acquisition of plant and stationary mining equipment
142.20and facilities for the producer or for research and development in Minnesota on new
142.21mining, or taconite, iron, or steel production technology, but only if the producer provides
142.22a matching expenditure to be used for the same purpose of at least 50 percent of the
142.23distribution based on 14.7 cents per ton beginning with distributions in 2002. Effective for
142.24proposals for expenditures of money from the fund approved beginning the day following
142.25final enactment, the commissioner may release the funds only if the proposed expenditure
142.26is approved by a majority of the members of the Iron Range Resources and Rehabilitation
142.27Board. If a producer uses money which has been released from the fund prior to the day
142.28following final enactment to procure haulage trucks, mobile equipment, or mining shovels,
142.29and the producer removes the piece of equipment from the taconite tax relief area defined
142.30in section 273.134 within ten years from the date of receipt of the money from the fund,
142.31a portion of the money granted from the fund must be repaid to the taconite economic
142.32development fund. The portion of the money to be repaid is 100 percent of the grant if the
142.33equipment is removed from the taconite tax relief area within 12 months after receipt of
142.34the money from the fund, declining by ten percent for each of the subsequent nine years
142.35during which the equipment remains within the taconite tax relief area. If a taconite
143.1production facility is sold after operations at the facility had ceased, any money remaining
143.2in the fund for the former producer may be released to the purchaser of the facility on
143.3the terms otherwise applicable to the former producer under this section. If a producer
143.4fails to provide matching funds for a proposed expenditure within six months after the
143.5commissioner approves release of the funds, the funds are available for release to another
143.6producer in proportion to the distribution provided and under the conditions of this section.
143.7Any portion of the fund which is not released by the commissioner within two years of its
143.8deposit in the fund shall be divided between the taconite environmental protection fund
143.9created in section 298.223 and the Douglas J. Johnson economic protection trust fund
143.10created in section 298.292 for placement in their respective special accounts. Two-thirds
143.11of the unreleased funds shall be distributed to the taconite environmental protection fund
143.12and one-third to the Douglas J. Johnson economic protection trust fund.
143.13EFFECTIVE DATE.This section is effective for proposals for expenditures of
143.14money from the fund the day following final enactment.

143.15    Sec. 4. APPROPRIATION; IRON RANGE RESOURCES AND
143.16REHABILITATION BOARD.
143.17    $500,000 is appropriated from the Iron Range Resources and Rehabilitation Board
143.18fund for fiscal year 2008 for allocation in this section:
143.19    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other
143.20infrastructure to a peat project in Spencer Township in Aitkin County;
143.21    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham
143.22Synagogue in Virginia, of which $50,000 is for renovation and $25,000 is for a permanent
143.23endowment for the preservation;
143.24    (3) $150,000 is for a grant to the Iron Range youth in action program to assist the
143.25organization to employ youth for the construction of community centers; and
143.26    (4) $50,000 is for a grant to the Iron Range retriever club for pond and field
143.27construction.
143.28    These are onetime appropriations.

143.29    Sec. 5. IRRRB BUILDING.
143.30    The Iron Range Resources and Rehabilitation Board office building in Eveleth,
143.31Minnesota is designated and named the Joe Begich Building and shall be signed as such
143.32at every entrance.

144.1ARTICLE 11
144.2ELECTRICAL

144.3    Section 1. Minnesota Statutes 2006, section 326.01, subdivision 6g, is amended to read:
144.4    Subd. 6g. Personal direct supervision. The term "personal "Direct supervision"
144.5means that a person licensed to perform electrical work oversees and directs the electrical
144.6work performed by an unlicensed person such that:
144.7    (1) the licensed person actually reviews the electrical work performed by the
144.8unlicensed person an unlicensed individual is being supervised by an individual licensed
144.9to perform the electrical work being supervised;
144.10    (2) during the entire working day of the unlicensed individual, the licensed
144.11individual is physically present at the location where the unlicensed individual is
144.12preforming electrical work and immediately available to the unlicensed individual;
144.13    (3) the licensed person individual is physically present and immediately available to
144.14the unlicensed person individual at all times for assistance and direction; and
144.15    (4) electronic supervision does not meet the requirement of physically present and
144.16immediately available;
144.17    (5) the licensed individual shall review the electrical work performed by the
144.18unlicensed individual before the electrical work is operated; and
144.19    (3) (6) the licensed person individual is able to and does determine that all electrical
144.20work performed by the unlicensed person individual is performed in compliance with
144.21section 326.243.
144.22    The licensed person individual is responsible for the compliance with section
144.23326.243 of all electrical work performed by the unlicensed person individual.

144.24    Sec. 2. Minnesota Statutes 2006, section 326.241, subdivision 1, is amended to read:
144.25    Subdivision 1. Composition. (a) The Board of Electricity shall consist of 11 12
144.26members, residents of the state, appointed by the governor of whom and confirmed by
144.27the senate. The commissioner of labor and industry or the commissioner's designee shall
144.28be a nonvoting member. The first appointed board members shall serve an initial term
144.29of four years, except where designated otherwise. The governor shall then reappoint the
144.30current members or appoint replacement members, all or in part, to subsequent three-year
144.31terms. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies
144.32occurring with less than six months time remaining in the term shall be filled for the
144.33existing term and the following three-year term. Of the 11 appointed members, the
144.34composition shall be as follows:
145.1    (1) two shall be representatives of the electrical suppliers in the rural areas of the
145.2state,
145.3    (2) two shall be master electricians, who shall be contractors,
145.4    (3) two journeyman electricians,
145.5    (4) one registered consulting electrical engineer,
145.6    (5) two power limited technicians, who shall be technology system contractors
145.7primarily engaged in the business of installing technology circuits or systems, and
145.8    (6) two public members as defined by section 214.02.
145.9    (b) Except as provided herein, membership terms, compensation of members,
145.10removal of members, the filling of membership vacancies, and fiscal year and reporting
145.11requirements shall be as provided in sections 214.07 to 214.09. The provision of staff,
145.12administrative services and office space; the review and processing of complaints; the
145.13setting of board fees; and other provisions relating to board operations shall be as provided
145.14in chapter 214.

145.15    Sec. 3. Minnesota Statutes 2006, section 326.241, subdivision 2, is amended to read:
145.16    Subd. 2. Powers. (a) The board, or the complaint committee on behalf of the board
145.17where authorized by law, shall have power to:
145.18    (1) Elect its own officers.
145.19    (2) Engage and fix the compensation of inspectors, and hire employees. The salary
145.20of the executive secretary shall be established pursuant to chapter 43A. All agents and
145.21employees other than contract inspectors shall be in the classified service and shall be
145.22compensated pursuant to chapter 43A. All inspectors shall hold licenses as master or
145.23journeyman electricians under section 326.242, subdivision 1(1) or 2(1), and shall give
145.24bond in an amount fixed by the board, conditioned upon the faithful performance of
145.25their duties.
145.26    (3) (2) Pay such other expenses as it may deem necessary in the performance of its
145.27duties, including rent, supplies, and such like.
145.28    (3) Select from its members individuals to serve on any other state advisory councils,
145.29boards, or committees.
145.30    (4) Enforce the provisions of sections 326.241 to 326.248, and provide, upon
145.31request, such additional voluntary inspections and reviews as it may deem appropriate.
145.32    (5) Issue, renew, refuse to renew, suspend, temporarily suspend, and revoke licenses,
145.33censure licensees, assess civil penalties, issue cease and desist orders, and seek injunctive
145.34relief and civil penalties in court as authorized by section 326.242 and other provisions of
146.1Minnesota law. Establish the committees required herein and any others deemed necessary
146.2by the board or requested by the commissioner.
146.3    (6) Adopt reasonable rules to carry out its duties under sections 326.241 to 326.248
146.4and to provide for the amount and collection of fees for inspection and other services. All
146.5rules shall be adopted in accordance with chapter 14.
146.6    (7) Advise the commissioner on issues related to sections 326.241 to 326.248 or as
146.7requested by the commissioner.
146.8    (b) Except for the powers granted to the Electricity Board the commissioner of labor
146.9and industry shall administer the provisions of sections 326.241 to 326.248 and for such
146.10purposes may employ electrical inspectors and other assistants.

146.11    Sec. 4. Minnesota Statutes 2006, section 326.242, subdivision 5, is amended to read:
146.12    Subd. 5. Unlicensed persons individuals. (a) An unlicensed person individual
146.13means an individual who has not been licensed by the Board of Electricity as a Class A
146.14master electrician or as a Class A journeyman electrician. An unlicensed individual shall
146.15not perform electrical work required to be performed by a licensed individual unless the
146.16individual has first registered with the Board of Electricity as an unlicensed individual.
146.17Thereafter, an unlicensed individual shall not perform electrical work required to be
146.18performed by a licensed individual unless the work is performed under the personal direct
146.19supervision of a person an individual actually licensed to perform such work and. The
146.20licensed electrician individual and unlicensed persons are individual must be employed
146.21by the same employer. Licensed persons individuals shall not permit unlicensed persons
146.22individuals to perform electrical work except under the personal direct supervision of
146.23a person an individual actually licensed to perform such work. Unlicensed persons
146.24individuals shall not supervise the performance of electrical work or make assignments
146.25of electrical work to unlicensed persons individuals. Except for technology circuit or
146.26system work, licensed persons individuals shall supervise no more than two unlicensed
146.27persons individuals. For technology circuit or system work, licensed persons individuals
146.28shall supervise no more than three unlicensed persons individuals.
146.29    (b) Notwithstanding any other provision of this section, no person individual other
146.30than a master electrician or power limited technician shall plan or lay out electrical wiring,
146.31apparatus, or equipment for light, heat, power, or other purposes, except circuits or
146.32systems exempted from personal licensing by subdivision 12, paragraph (b).
146.33    (c) Contractors employing unlicensed persons performing individuals to perform
146.34electrical work shall maintain records establishing compliance with this subdivision,
146.35which that shall designate identify all unlicensed persons individuals performing electrical
147.1work, except for persons working on circuits or systems exempted from personal licensing
147.2by subdivision 12, paragraph (b), and shall permit the board to examine and copy all such
147.3records as provided for in section 326.244, subdivision 6.
147.4    (d) When a licensed individual supervises the electrical work of an unlicensed
147.5individual, the licensed individual is responsible for ensuring that the electrical work
147.6complies with sections 326.241 to 326.248 and rules adopted.

147.7    Sec. 5. Minnesota Statutes 2006, section 326.242, is amended by adding a subdivision
147.8to read:
147.9    Subd. 5a. Registration of unlicensed individuals. Unlicensed individuals
147.10performing electrical work for a contractor or employer shall register with the department
147.11in the manner prescribed by the commissioner. Experience credit for electrical work
147.12performed after January 1, 2008, by an applicant for a license identified in this section
147.13shall not be granted where the applicant has not registered with or is not licensed by
147.14the department.

147.15    Sec. 6. Minnesota Statutes 2006, section 326.242, subdivision 11, is amended to read:
147.16    Subd. 11. Reciprocity. To the extent that any other state which provides for the
147.17licensing of electricians provides for similar action the board may grant licenses, without
147.18examination, of the same grade and class to an electrician who has been licensed by such
147.19other state for at least one year, upon payment by the applicant of the required fee and
147.20upon the board being furnished with proof that the required fee and upon the board being
147.21furnished with proof that the qualifications of the applicant are equal to the qualifications
147.22of holders of similar licenses in Minnesota. The commissioner may enter into reciprocity
147.23agreements for personal licenses with another state if approved by the board. Once
147.24approved by the board, the commissioner may issue a personal license without requiring
147.25the applicant to pass an examination provided the applicant:
147.26    (a) submits an application under section 326.242;
147.27    (b) pays the fee required under section 326.242; and
147.28    (c) holds a valid comparable license in the state participating in the agreement.
147.29    Agreements are subject to the following:
147.30    (1) The parties to the agreement must administer a statewide licensing program that
147.31includes examination and qualifying experience or training comparable to Minnesota's.
147.32    (2) The experience and training requirements under which an individual applicant
147.33qualified for examination in the qualifying state must be deemed equal to or greater than
148.1required for an applicant making application in Minnesota at the time the applicant
148.2acquired the license in the qualifying state.
148.3    (3) The applicant must have acquired the license in the qualifying state through an
148.4examination deemed equivalent to the same class of license examination in Minnesota.
148.5A lesser class of license may be granted where the applicant has acquired a greater
148.6class of license in the qualifying state and the applicant otherwise meets the conditions
148.7of this subdivision.
148.8    (4) At the time of application, the applicant must hold a valid license in the
148.9qualifying state and have held the license continuously for at least one year before making
148.10application in Minnesota.
148.11    (5) An applicant is not eligible for a license under this subdivision if the applicant
148.12has failed the same or greater class of license examination in Minnesota, or if the
148.13applicant's license of the same or greater class has been revoked or suspended.
148.14    (6) An applicant who has failed to renew a personal license for two years or more
148.15after its expiration is not eligible for a license under this subdivision.

148.16    Sec. 7. REPEALER.
148.17Minnesota Statutes 2006, sections 326.01, subdivision 4; and 326.242, subdivision
148.184, are repealed.
148.19EFFECTIVE DATE.This section is effective the day following final enactment.

148.20ARTICLE 12
148.21APPRENTICESHIP BOARD

148.22    Section 1. Minnesota Statutes 2006, section 178.01, is amended to read:
148.23178.01 PURPOSES.
148.24    The purposes of this chapter are: to open to young people regardless of race, sex,
148.25creed, color or national origin, the opportunity to obtain training that will equip them for
148.26profitable employment and citizenship; to establish as a means to this end, a program
148.27of voluntary apprenticeship under approved apprentice agreements providing facilities
148.28for their training and guidance in the arts, skills, and crafts of industry and trade, with
148.29concurrent, supplementary instruction in related subjects; to promote employment
148.30opportunities under conditions providing adequate training and reasonable earnings;
148.31to relate the supply of skilled workers to employment demands; to establish standards
148.32for apprentice training; to establish an Apprenticeship Advisory Council Board and
148.33apprenticeship committees to assist in effectuating the purposes of this chapter; to provide
149.1for a Division of Labor Standards and Apprenticeship within the Department of Labor
149.2and Industry; to provide for reports to the legislature regarding the status of apprentice
149.3training in the state; to establish a procedure for the determination of apprentice agreement
149.4controversies; and to accomplish related ends.

149.5    Sec. 2. Minnesota Statutes 2006, section 178.02, is amended to read:
149.6178.02 APPRENTICESHIP ADVISORY COUNCIL BOARD.
149.7    Subdivision 1. Members. The commissioner of labor and industry, hereinafter
149.8called the commissioner, shall appoint an Apprenticeship Advisory Council Board,
149.9hereinafter referred to as the council board, composed of three representatives each from
149.10employer and employee organizations, and two representatives of the general public. The
149.11director of education responsible for career and technical education or designee shall be an
149.12ex officio member of the council board and shall serve in an advisory capacity only.
149.13    Subd. 2. Terms. The council board shall expire and the terms, compensation, and
149.14removal of appointed members shall be as provided in section 15.059, except that the
149.15council shall not expire before June 30, 2003.
149.16    Subd. 4. Duties. The council board shall meet at the call of the commissioner. It
149.17shall propose occupational classifications for apprenticeship programs; propose minimum
149.18standards for apprenticeship programs and agreements; and advise on the establishment
149.19of such policies, procedures, and rules as the commissioner board deems necessary in
149.20implementing the intent of this chapter.

149.21    Sec. 3. Minnesota Statutes 2006, section 178.03, subdivision 3, is amended to read:
149.22    Subd. 3. Duties and functions. The director, under the supervision of the
149.23commissioner, and with the advice and oversight of the Apprenticeship Advisory
149.24Council Board, is authorized: to administer the provisions of this chapter; to promote
149.25apprenticeship and other forms of on the job training; to establish, in cooperation and
149.26consultation with the Apprenticeship Advisory Council Board and with the apprenticeship
149.27committees, conditions and training standards for the approval of apprenticeship programs
149.28and agreements, which conditions and standards shall in no case be lower than those
149.29prescribed by this chapter; to promote equal employment opportunity in apprenticeship
149.30and other on the job training and to establish a Minnesota plan for equal employment
149.31opportunity in apprenticeship which shall be consistent with standards established
149.32under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of
149.33registration to sponsors of approved apprenticeship programs; to act as secretary of the
149.34Apprenticeship Advisory Council Board; to approve, if of the opinion that approval is
150.1for the best interest of the apprentice, any apprenticeship agreement which meets the
150.2standards established hereunder; to terminate any apprenticeship agreement in accordance
150.3with the provisions of such agreement; to keep a record of apprenticeship agreements and
150.4their disposition; to issue certificates of completion of apprenticeship; and to perform
150.5such other duties as the commissioner deems necessary to carry out the intent of this
150.6chapter; provided, that the administration and supervision of supplementary instruction in
150.7related subjects for apprentices; coordination of instruction on a concurrent basis with
150.8job experiences, and the selection and training of teachers and coordinators for such
150.9instruction shall be the function of state and local boards responsible for vocational
150.10education. The director shall have the authority to make wage determinations applicable
150.11to the graduated schedule of wages and journeyman wage rate for apprenticeship
150.12agreements, giving consideration to the existing wage rates prevailing throughout the
150.13state, except that no wage determination by the director shall alter an existing wage
150.14provision for apprentices or journeymen that is contained in a bargaining agreement in
150.15effect between an employer and an organization of employees, nor shall the director
150.16make any determination for the beginning rate for an apprentice that is below the wage
150.17minimum established by federal or state law.

150.18    Sec. 4. Minnesota Statutes 2006, section 178.041, subdivision 1, is amended to read:
150.19    Subdivision 1. Rules. The commissioner may, upon receipt of the council's board's
150.20proposals, accept, adopt, and issue them by rule with any modifications or amendments
150.21the commissioner finds appropriate. The commissioner may refer them back to the
150.22council board with recommendations for further study, consideration and revision. If
150.23the commissioner refuses to accept, adopt, and issue by rule or other appropriate action
150.24a board proposal, the commissioner must provide a written explanation of the reason
150.25for the refusal to the board within 30 days after the board submitted the proposal to the
150.26commissioner. Additional rules may be issued as the commissioner may deem necessary.