1.1    .................... moves to amend H. F. No. 797 as follows:
1.2Delete everything after the enacting clause and insert:

1.5	Section 1. SUMMARY OF APPROPRIATIONS.

1.6    The amounts shown in this section summarize direct appropriations, by fund, made
1.7in this article.

1.8			2008		2009		Total
1.9	General	$	1,558,902,000	$	1,640,951,000	$	3,199,853,000
1.10	Health Care Access		2,157,000		2,157,000		4,314,000
1.11	Total	$	1,564,008,000	$	1,643,108,000	$	3,207,116,000

1.12	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

1.13    The sums shown in the columns marked "Appropriations" are appropriated to the
1.14agencies and for the purposes specified in this article. The appropriations are from the
1.15general fund, or another named fund, and are available for the fiscal years indicated
1.16for each purpose. The figures "2008" and "2009" used in this article mean that the
1.17appropriations listed under them are available for the fiscal year ending June 30, 2008, or
1.18June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
1.19year 2009. "The biennium" is fiscal years 2008 and 2009.

1.20				APPROPRIATIONS
1.21				Available for the Year
1.22				Ending June 30
1.23					2008		2009

1.24 1.25

Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

1.26

Subdivision 1.Total Appropriation

$

194,983,000

$

195,654,000

2.1The amounts that may be spent for each
2.2purpose are specified in the following
2.3subdivisions.

2.4

Subd. 2.Minnesota GI Bill

7,000,000

7,000,000

2.5For grants to eligible veterans or the eligible
2.6spouses and children of veterans as provided
2.7under Minnesota Statutes, section 197.791.
2.8Of this appropriation, $152,000 the first
2.9year and $104,000 the second year are for
2.10the administrative costs of operating this
2.11program. For the 2010-2011 biennium,
2.12the base for this program's administrative
2.13costs must be included within the agency
2.14administration program activity.

2.15

Subd. 3.State Grants

150,154,000

151,124,000

2.16If the appropriation in this subdivision for
2.17either year is insufficient, the appropriation
2.18for the other year is available for it.
2.19For the biennium, the tuition maximum for
2.20students in four-year programs is $9,957 in
2.21each year for students in four-year programs,
2.22and for students in two-year programs, is
2.23$4,717 in the first year and $4,859 in the
2.24second year.
2.25This appropriation sets the living and
2.26miscellaneous expense allowance at $6,050
2.27each year.

2.28

Subd. 4.Safety Officers Survivors

100,000

100,000

2.29This appropriation is to provide educational
2.30benefits under Minnesota Statutes, section
2.31299A.45, to dependent children under age 23
2.32and to the spouses of public safety officers
2.33killed in the line of duty.
3.1If the appropriation in this subdivision for
3.2either year is insufficient, the appropriation
3.3for the other year is available for it.

3.4

Subd. 5.Interstate Tuition Reciprocity

2,000,000

2,000,000

3.5If the appropriation in this subdivision for
3.6either year is insufficient, the appropriation
3.7for the other year is available to meet
3.8reciprocity contract obligations.

3.9

Subd. 6.State Work Study

12,444,000

12,444,000

3.10

Subd. 7.Child Care Grants

4,934,000

4,934,000

3.11

Subd. 8.Minitex

5,881,000

5,881,000

3.12

Subd. 9.MnLINK Gateway

400,000

400,000

3.13

Subd. 10.Learning Network of Minnesota

4,800,000

4,800,000

3.14

Subd. 11.Minnesota College Savings Plan

1,120,000

1,120,000

3.15

Subd. 12.Midwest Higher Education Compact

90,000

90,000

3.16

Subd. 13.Other Small Programs

2,010,000

1,670,000

3.17This appropriation includes funding for
3.18postsecondary service learning, student and
3.19parent information, get ready, outreach, and
3.20intervention for college attendance programs.
3.21$265,000 each year is for grants to increase
3.22campus-community collaboration and service
3.23learning statewide, including operations of
3.24the Minnesota campus compact, grants to
3.25member institutions and for their initiatives.
3.26For every $1 in state funding, grant
3.27recipients must contribute $2 in campus or
3.28community-based support.
3.29$100,000 each year is for a grant to the
3.30Loan Repayment Assistance Program
3.31of Minnesota, Inc. for loan repayment
3.32assistance awards.
4.1$500,000 each year is for the teacher
4.2education and compensation helps (TEACH)
4.3and the Minnesota early childhood teacher
4.4retention programs in Minnesota Statutes,
4.5section 136A.126. This is a onetime
4.6appropriation.
4.7$250,000 in the first year is for a grant to
4.8Augsburg College for the purpose of its
4.9Step UP program to provide educational
4.10opportunities to chemically dependent
4.11students and to work with other public
4.12and private colleges in Minnesota to help
4.13replicate this program. This is a onetime
4.14appropriation.
4.15$50,000 in the first year for the speech
4.16pathologist loan forgiveness program for
4.17deposit in the account under Minnesota
4.18Statutes section 136A.1704.
4.19$40,000 in the first year for a grant to the
4.20Washington Center for Internships and
4.21Academic Seminars for a pilot program
4.22for scholarships for students enrolling in a
4.23Minnesota four-year college or university
4.24beginning in the fall semester of 2007. The
4.25grant it available only with a dollar-for-dollar
4.26match from nonstate sources.

4.27

Subd. 14.ACHIEVE+ Rural Pilot Programs

1,000,000

1,000,000

4.28For Access to College and Helping
4.29Individuals Everywhere Value Education
4.30pilot projects that provide distance-learning
4.31opportunities through the Minnesota State
4.32Colleges and Universities for high school
4.33students living in remote and underserved
4.34areas where the school district lacks
4.35the resources to provide academically
5.1challenging educational opportunities,
5.2including Advanced Placement and
5.3International Baccalaureate Programs.
5.4Students who successfully complete a course
5.5must receive college credit at no cost to the
5.6student or the participating school district.
5.7The Office must report to the committees of
5.8the legislature with responsibility for higher
5.9education finance by January 15, 2009 on the
5.10program outcomes with recommendations on
5.11continuing and expanding the program.

5.12 5.13

Subd. 15.United Family Medicine Residency Program

360,000

360,000

5.14For a grant to the United Family Medicine
5.15residency program. This appropriation
5.16must be used to support up to 18 resident
5.17physicians each year in family practice at
5.18United Family Medicine residency programs
5.19and must prepare doctors to practice family
5.20care medicine in underserved rural and
5.21urban areas of the state. The legislature
5.22intends this program to improve health
5.23care in underserved communities, provide
5.24affordable access to appropriate medical
5.25care, and manage the treatment of patients in
5.26a more cost-effective manner.

5.27

Subd. 16.Agency Administration

2,690,000

2,731,000

5.28Of this appropriation, $39,000 the first
5.29year and $80,000 the second year are for
5.30compensation-related costs associated with
5.31the delivery of the office's services and
5.32programs.

5.33

Subd. 17.Balances Forward

6.1A balance in the first year under this section
6.2does not cancel, but is available for the
6.3second year.

6.4

Subd. 18.Transfers

6.5The Office Of Higher Education may
6.6transfer unencumbered balances from the
6.7appropriations in subdivisions 4 to 16 to the
6.8state grant appropriation, the safety officer
6.9survivors appropriation, the interstate tuition
6.10reciprocity appropriation, the Minnesota
6.11college savings plan appropriation, the child
6.12care appropriation, and the state work study
6.13appropriation.

6.14

Subd. 19.Reporting

6.15(a) By November 1 and February 15, the
6.16office must provide updated state grant
6.17spending projections taking into account
6.18the most current and projected enrollment
6.19and tuition and fee information, economic
6.20conditions, and other relevant factors.
6.21Before submitting state grant spending
6.22projections, the office must meet and consult
6.23with representatives of public and private
6.24postsecondary education, the Department of
6.25Finance, governor's office, legislative staff,
6.26and financial aid administrators.
6.27(b) The Minnesota Office of Higher
6.28Education shall report to the higher education
6.29divisions of the house and senate finance
6.30committees on participation in postsecondary
6.31education by income, and persistence and
6.32graduation rates of state grant recipients
6.33compared to students who did not receive
6.34state grants. The office is authorized to match
6.35individual student data from the student
7.1record enrollment database with individual
7.2student data from the state grant database on
7.3data elements necessary to perform the study.

7.4 7.5 7.6

Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

7.7

Subdivision 1.Total Appropriation

$

668,388,000

$

704,288,000

7.8The amounts that may be spent for each
7.9purpose are specified in the following
7.10subdivisions.

7.11 7.12

Subd. 2.Central Office and Shared Services Unit

$

40,170,550

$

40,170,550

7.13For the office of the chancellor and the shared
7.14services division.

7.15

Subd. 3.Operations and Maintenance

$

628,217,450

$

664,118,000

7.16(a) This appropriation includes funding
7.17for the board's initiatives on recruiting and
7.18retaining underrepresented students, strategic
7.19educational advancements, STEM initiatives,
7.20and infrastructure and technology and for
7.21the costs of inflation. This appropriation
7.22also includes funding to reduce the tuition
7.23rate increase to 2 percent from the board
7.24approved plan of a 4 percent annual increase.
7.25(b) Appropriations for technology and
7.26infrastructure under this subdivision must
7.27not be used to increase permanent positions
7.28in the office of the chancellor or the shared
7.29services office. Any new positions funded
7.30from the technology and infrastructure
7.31appropriation must be at a campus.
7.32(c) $400,000 each year is for
7.33community-based energy development
7.34pilot projects at Mesabi Range Technical
8.1and Community College, the Minnesota
8.2West Community and Technical College,
8.3and Riverland Community College. Each
8.4campus must establish partnerships for
8.5community-based energy development pilot
8.6projects that involves students and faculty.
8.7An allocation for the pilot project is available
8.8to the participating institutions and the
8.9partnerships for the biennium ending June
8.1030, 2009.
8.11(d) $750,000 in the first year is for a modular
8.12clean-room research and training facility
8.13at St. Paul College. This is a onetime
8.14appropriation and is available until expended.
8.15(e) $300,000 the first year is for a grant to
8.16the Range Association of Municipalities
8.17and Schools for a study of student demand
8.18and employer needs for higher education in
8.19the Mesabi Range region of Northeastern,
8.20Minnesota including the cities of Grand
8.21Rapids through Eveleth to Ely. The
8.22Association must coordinate and contract
8.23for a study in cooperation with the Board of
8.24Regents of the University of Minnesota, and
8.25the Board of Trustees of the Minnesota State
8.26Colleges and Universities. The Governing
8.27Boards must advise on which of the identified
8.28needs can be met by University of Minnesota
8.29courses and which can be met by the
8.30Minnesota State Colleges and Universities,
8.31and which degree programs may be offered
8.32jointly. The final report must be submitted to
8.33the committees of the legislature responsible
8.34for higher education finance by January 15,
8.352008 with recommendations and plans for
8.36the region.
9.1(f) $120,000 in each year is for the Cook
9.2County Higher Education Board to provide
9.3educational programs and academic support
9.4services. The base appropriation for this
9.5program is $120,000 in each year of the
9.6biennium ending June 30, 2011.
9.7(g) $2,000,000 the first year and $1,000,000
9.8the second year is for a pilot project with
9.9the Northeast Minnesota Higher Education
9.10District and high schools in its area. Up to
9.11$1,200,000 of the first year appropriation
9.12must be used to purchase equipment that is
9.13necessary to reestablish a technical education
9.14curriculum in the area high schools to
9.15provide the students with the technical
9.16skills necessary for the workforce. Students
9.17from areas high schools may also access
9.18the facilities and faculty of the Northeast
9.19Minnesota Higher Education District
9.20for state-of-the-art technical education
9.21opportunities, including MnSCU's 2+2
9.22Pathways initiative. $1,000,000 is added to
9.23the base for this project.
9.24(h) $50,000 in the first year is for Saint
9.25Paul College to collaborate with the United
9.26Auto Workers Local 879 to purchase a Ford
9.27Ranger pick-up truck to retrofit to run on a
9.28battery powered motor. This vehicle must be
9.29retrofitted to serve as a prototype that could
9.30be mass produced at the Saint Paul Ford
9.31assembly plant.
9.32(i) $100,000 each year is for a grant to a
9.33Minnesota public postsecondary institution
9.34with a total student enrollment under 7,000
9.35students, that has an existing women's
10.1hockey team competing in Division One in
10.2the Western Collegiate Hockey Association.
10.3The institution may use the grant for
10.4equipment, facility improvements, travel and
10.5compensation for coaches, trainers and other
10.6necessary personnel.
10.7(j) $450,000 each year is to establish a Center
10.8for workforce and economic development at
10.9the Mesabi Range Community and Technical
10.10College and to enhance efoliominnesota.
10.11The Board, in cooperation with the Iron
10.12Range Resources and Rehabilitation Board
10.13and the Department of Employment and
10.14Economic Development, must establish the
10.15Center to provide on-site and internet based
10.16support and technical assistance to users of
10.17the state's efoliominnesota system to promote
10.18workforce and economic development.
10.19The Center must assist local economic
10.20development agencies and officials to enable
10.21them to access workforce information
10.22generated through the efoliominnesota
10.23system. The Board must enhance the
10.24efoliominnesota system as necessary to serve
10.25these purposes. The Center must report
10.26annually to the IRRRB and the Department
10.27of Employment and Economic Development
10.28on the outcomes of the Center's activities.
10.29(k) $1,000,000 the first year is to identify
10.30and improve on practices for selecting and
10.31purchasing textbooks and course material
10.32that are used by students. The board, in
10.33collaboration with the Minnesota State
10.34University Student Association (MSUSA)
10.35and the Minnesota State College Student
10.36Association (MSCSA) must develop
11.1and implement pilot projects with this
11.2appropriation to address the financial burden
11.3that textbook prices and requirements place
11.4on students. These projects may include
11.5textbook rental programs, cooperative
11.6purchasing efforts, training, education
11.7and awareness programs for students and
11.8faculty on cost considerations and textbook
11.9options. The student associations must
11.10be fully involved in the development and
11.11implementation of any project using this
11.12appropriation. Each student association
11.13must vote to approve a project before it is
11.14implemented. MSUSA and MSCSA must
11.15report to the committees of the legislature
11.16responsible for higher education finance by
11.17February 15, 2009 on the success of the pilot
11.18projects. This money is available until June
11.1930, 2009.

11.20

Subd. 4.Board Policies

11.21(a) The Board must adopt a policy that
11.22allows students to add the cost of textbooks
11.23and required course material purchased at
11.24a campus bookstore, owned by or operated
11.25under a contract with the campus, to the
11.26existing waivers or payment plans for tuition
11.27and fees.
11.28(b) The Board must adopt a policy setting
11.29the maximum number of semester credits
11.30required for a baccalaureate degree at 120
11.31semester credits or the equivalent and the
11.32number of semester credits required for an
11.33associate degree at 60 semester credits or the
11.34equivalent.

12.1 12.2

Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

12.3

Subdivision 1.Total Appropriation

$

696,486,000

$

741,916,000

12.4The amounts that may be spent for each
12.5purpose are specified in the following
12.6subdivisions.

12.7

Subd. 2.Operations and Maintenance

611,516,000

667,323,000

12.8(a) This appropriation includes amounts for
12.9the board:
12.10(1) to make investments in the university's
12.11technology and related infrastructure;
12.12(2) to award faculty and staff compensation
12.13increases differentially;
12.14(3) for the board's health workforce and
12.15clinical sciences initiative;
12.16(4) initiatives in science and engineering;
12.17(5) initiatives relating to the environment,
12.18agriculture, and renewable energy; and
12.19(6) for advancing education, including an
12.20Ojibwe Indian language program on the
12.21Duluth Campus.
12.22(b) $2,250,000 each year is to establish
12.23banded tuition at the Morris, Crookston, and
12.24Duluth campus to reduce tuition costs for
12.25students.
12.26(c) $7,000,000 for the biennium is for
12.27scholarships to mitigate the effects of rising
12.28tuition on students and families. This
12.29appropriation must be matched with $2 of
12.30nonstate money for each $1 of state money.
12.31(d) $300,000 the first year is for the Center
12.32for Transportation Studies to complete a
12.33study to assess public policy options for
13.1reducing the volume of greenhouse gases
13.2emitted from the transportation sector in
13.3Minnesota. The Center for Transportation
13.4Studies must report its preliminary findings
13.5to the legislature by February 1, 2008, and
13.6must issue its full report by June 1, 2008.
13.7This is a onetime appropriation.
13.8(e) $250,000 each year is to establish an India
13.9Center to improve and promote relations with
13.10India and Southeast Asia. The center must
13.11partner with public and private organizations
13.12in Minnesota to:
13.13(1) foster an understanding of the history,
13.14culture, and values of India;
13.15(2) serve as a resource and catalyst to
13.16promote economic, governmental, and
13.17academic pursuits involving India; and
13.18(3) facilitate educational and business
13.19exchanges and partnerships, collaborative
13.20research, and teaching and training activities
13.21for Minnesota students and teachers.
13.22The Board of Regents may establish an
13.23advisory council to facilitate the mission
13.24and objectives of the India Center and must
13.25report on the progress of the India Center by
13.26February 15, 2008, to the governor and chairs
13.27of the legislative committees responsible for
13.28higher education finance. This is a onetime
13.29appropriation.
13.30(f) $750,000 in the first year to assist in
13.31the formation of the neighborhood alliance
13.32and for projects identified in section 8. The
13.33alliance, the Board of Regents, and the city of
13.34Minneapolis may cooperate on the projects
14.1and may use the services of other entities to
14.2complete all or a portion of a project.
14.3(g) $300,000 the first year is to establish a
14.4Dakota language teacher training immersion
14.5program on the Twin Cities campus to
14.6prepare teachers to teach in Dakota language
14.7immersion programs. This is a onetime
14.8appropriation.

14.9

Subd. 3.Health Care Access Fund

2,157,000

2,157,000

14.10This appropriation is from the health care
14.11access fund and is for primary care education
14.12initiatives.

14.13

Subd. 4.Special Appropriation

65,813,000

65,436,000

14.14

(a) Agriculture and Extension Service

52,625,000

52,275,000

14.15(1) For the Agricultural Experiment
14.16Station, Minnesota Extension Service. This
14.17appropriation includes funding to promote
14.18alternative livestock research and outreach,
14.19and to promote sustainable and organic
14.20agricultural research and education.
14.21(2) This appropriation includes funding
14.22for research efforts that demonstrate a
14.23renewed emphasis on the needs of the state's
14.24production agriculture community and a
14.25continued focus on renewable energy derived
14.26from Minnesota biomass resources including
14.27agronomic crops, plant and animal wastes,
14.28and native plants or trees, with priority for
14.29extending the Minnesota vegetable growing
14.30season; fertilizer and soil fertility research
14.31and development; treating and curing human
14.32diseases utilizing livestock cells; using
14.33biofuel production coproducts as feed for
14.34livestock; and a rapid agricultural response
15.1fund for current or emerging animal, plant,
15.2and insect problems affecting production or
15.3food safety. In addition, the appropriation
15.4may be used to secure a facility and retain
15.5current faculty levels for poultry research
15.6currently conducted at UMore Park.
15.7 (3) In the area of renewable energy, priority
15.8should be given to projects pertaining to:
15.9biofuel and other energy production from
15.10small grains; alternative bioenergy crops and
15.11cropping systems; and growing, harvesting,
15.12and transporting biomass plant material.
15.13(4) This appropriation includes funding for
15.14the college of food, agricultural, and natural
15.15resources sciences to establish and maintain
15.16a statewide organic research and education
15.17initiative to provide leadership for organic
15.18agronomic, horticultural, livestock, and food
15.19systems research, education, and outreach
15.20and for the purchase of state-of-the-art
15.21laboratory, planting, tilling, harvesting, and
15.22processing equipment necessary for this
15.23project.
15.24(5) By February 1, 2009, the Board
15.25of Regents must report to the legislative
15.26committees with responsibility for agriculture
15.27and higher education finance on the research
15.28and initiatives under this paragraph.
15.29(6) The base appropriation is $51,775,000
15.30each year of the biennium ending June 30,
15.312011.

15.32

(b) Health Sciences

5,275,000

5,275,000

15.33$346,000 each year is to support up to 12
15.34resident physicians each year in the St.
15.35Cloud Hospital family practice residency
16.1program. The program must prepare doctors
16.2to practice primary care medicine in the rural
16.3areas of the state. The legislature intends
16.4this program to improve health care in rural
16.5communities, provide affordable access to
16.6appropriate medical care, and manage the
16.7treatment of patients in a more cost-effective
16.8manner.
16.9The remainder of this appropriation is for
16.10the rural physicians associates program, the
16.11Veterinary Diagnostic Laboratory, health
16.12sciences research, dental care, and the
16.13Biomedical Engineering Center.

16.14

(c) Institute of Technology

1,387,000

1,387,000

16.15For the Geological Survey and the Talented
16.16Youth Mathematics Program.

16.17

(d) System Specials

6,526,000

6,526,000

16.18For general research, student loans matching
16.19money, industrial relations education,
16.20Natural Resources Research Institute, Center
16.21for Urban and Regional Affairs, and the Bell
16.22Museum of Natural History. $100,000 is
16.23added to the base appropriation for industrial
16.24relations education.

16.25 16.26

Subd. 5.University of Minnesota and Mayo Foundation Partnership

17,000,000

7,000,000

16.27For the direct and indirect expenses of the
16.28collaborative research partnership between
16.29the University of Minnesota and the Mayo
16.30Foundation for research in biotechnology
16.31and medical genomics. $7,000,000 is added
16.32to the base. This appropriation is available
16.33until expended. An annual report on the
16.34expenditure of these funds must be submitted
16.35to the governor and the chairs of the senate
17.1and house committees responsible for higher
17.2education and economic development by
17.3June 30 of each fiscal year.

17.4

Subd. 6.Academic Health Center

17.5The appropriation for Academic Health
17.6Center funding under Minnesota Statutes,
17.7section 297F.10, is $22,250,000 each year.

17.8

Sec. 6. MAYO CLINIC

17.9

Subdivision 1.Total Appropriation

$

1,202,000

$

1,250,000

17.10The amounts that may be spent for each
17.11purpose are specified in the following
17.12subdivisions.

17.13

Subd. 2.Medical School

591,000

615,000

17.14The state of Minnesota must pay a capitation
17.15each year for each student who is a resident
17.16of Minnesota. The appropriation may be
17.17transferred between years of the biennium to
17.18accommodate enrollment fluctuations. The
17.19funding base for this program is $640,000 in
17.20fiscal year 2010 and $665,000 in fiscal year
17.212011.
17.22It is intended that during the biennium the
17.23Mayo Clinic use the capitation money to
17.24increase the number of doctors practicing in
17.25rural areas in need of doctors.

17.26 17.27

Subd. 3.Family Practice and Graduate Residency Program

611,000

635,000

17.28The state of Minnesota must pay stipend
17.29support for up to 27 residents each year. The
17.30funding base for this program is $660,000 in
17.31fiscal year 2010 and $686,000 in fiscal year
17.322011.

17.33    Sec. 7. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING.
18.1    Subdivision 1. Membership. A 12 member legislative commission on
18.2postsecondary funding is established consisting of six members of the house of
18.3representatives appointed by the speaker and six members of the senate appointed by
18.4the subcommittee on committees of the committee on rules and administration. The
18.5commission may elect a chair and other officers as necessary.
18.6    Subd. 2. Charge. The commission must develop an alternative funding formula
18.7or funding method for postsecondary education that creates incentives for high quality
18.8postsecondary education while maintaining access for students. In developing the formula
18.9or funding method, the commission must consider and address:
18.10    (1) both institutional aid and direct student aid;
18.11    (2) the major cost drivers in postsecondary education, such as inflation and
18.12enrollment;
18.13    (3) federal postsecondary funding and tax incentives for postsecondary education;
18.14and
18.15    (4) funding the formula or funding method within the projected constraints on the
18.16state budget in the coming decade.
18.17    Subd. 3. Report. The commission must report its recommendations to the house
18.18division on higher education and workforce development policy and finance, and the
18.19senate higher education budget and policy division by June 30, 2008.
18.20    Subd. 4. Expiration. The commission expires June 30, 2008.

18.21    Sec. 8. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA
18.22NEIGHBORHOOD ALLIANCE.
18.23    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
18.24have the meanings given them.
18.25    (b) "Alliance" means a representative body of the constituencies, including, but
18.26not limited to, the University of Minnesota, the city of Minneapolis, and the recognized
18.27neighborhood organizations and business associations referenced in the report.
18.28    (c) "Board" means the Board of Regents of the University of Minnesota.
18.29    (d) "Report" means the report and appendix entitled Moving Forward Together:
18.30University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to
18.31the legislature in February 2007.
18.32    (e) "University partnership district" or "district" means the area located within the
18.33city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East
18.34Como, Prospect Park, and University, as they are defined by the city, and the university's
18.35Minneapolis campus.
19.1    (f) "Tier two impact zone" means the neighborhoods of Northeast Minneapolis that
19.2house significant numbers of university students and staff. Transportation and housing
19.3policy analysis and planning must include these areas but they must not be included in
19.4the projects funded through the alliance.
19.5    (g) "University" means the University of Minnesota.
19.6    Subd. 2. Alliance; functions. The alliance may facilitate, initiate, or manage
19.7projects with the board, city, or other public or private entities that are intended to
19.8maintain the university partnership district as a viable place to study, research, and live.
19.9Projects may include, but not be limited to, those outlined in the report, as well as efforts
19.10to involve students in activities to maintain and improve the university partnership
19.11district; cooperative university and university partnership district long-term planning; and
19.12incentives to increase homeownership within the district with particular emphasis on
19.13employees of the university and of other major employers located within the district.
19.14    Subd. 3. Report. The board must report to the legislature by January 15, 2009, on
19.15the expenditure of funds appropriated under section 3.


19.18    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to
19.19read:
19.20    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
19.21for:
19.22    (1) necessary state level administration of financial aid and Minnesota GI Bill
19.23programs, including accounting, auditing, and disbursing state and federal financial aid
19.24funds, and reporting on financial aid programs to the governor and the legislature;
19.25    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
19.26and career schools, under sections 136A.61 to 136A.71 and chapter 141;
19.27    (3) administering the Learning Network of Minnesota;
19.28    (4) negotiating and administering reciprocity agreements;
19.29    (5) publishing and distributing financial aid information and materials, and other
19.30information and materials under section 136A.87, to students and parents;
19.31    (6) collecting and maintaining student enrollment and financial aid data and
19.32reporting data on students and postsecondary institutions to develop and implement a
19.33process to measure and report on the effectiveness of postsecondary institutions;
19.34    (7) administering the federal programs that affect students and institutions on a
19.35statewide basis; and
20.1    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
20.2administer the programs under its supervision.
20.3EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
20.4qualifying coursework taken on or after that date.

20.5    Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.
20.6    Subdivision 1. Policy. It is the policy of the state of Minnesota to provide
20.7postsecondary educational assistance to Minnesota veterans who have provided honorable
20.8service to this state and nation as members of the United States armed forces, whether
20.9in peacetime or in war, and to the spouses and children of Minnesota veterans who have
20.10become severely disabled or deceased during or as the direct result of military service.
20.11    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
20.12    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
20.13specified.
20.14    (c) "Cost of attendance" for both undergraduate and graduate students has the
20.15meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
20.16    (d) "Child" means a natural or adopted child of a person described in subdivision 5,
20.17paragraph (a), clause (1), item (i) or (ii).
20.18    (e) "Director" means the director of the Minnesota Office of Higher Education.
20.19    (f) "Eligible institution" means a postsecondary institution located in this state
20.20that either (1) is operated by this state; or (2) is operated publicly or privately and, as
20.21determined by the office, maintains academic standards substantially equivalent to those
20.22of comparable institutions operated in this state.
20.23    (g) "Eligible student" means a person who:
20.24    (1) if the student is an undergraduate student, has applied for the federal Pell Grant
20.25and the Minnesota State Grant;
20.26    (2) is maintaining satisfactory academic progress as defined by the institution for
20.27students participating in federal Title IV programs;
20.28    (3) is enrolled in an education program leading to a certificate, diploma, or degree
20.29at an eligible institution;
20.30    (4) has applied for educational assistance under the Minnesota GI Bill program prior
20.31to the end of the academic term for which the assistance is being requested.
20.32    (5) is in compliance with child support payment requirements under section
20.33136A.121, subdivision 2, clause (5).
21.1    (h) "Part-time student" means an undergraduate student enrolled for fewer than 12
21.2credits in a semester or the equivalent, or a graduate student as defined by the student's
21.3eligible institution.
21.4    (i) "Program" means the Minnesota GI Bill program established in this section,
21.5unless otherwise specified.
21.6    (j) "Service-connected" has the meaning given by the United States Department of
21.7Veterans Affairs, and also includes suicide by a service member or veteran within two
21.8years of any federal active military service by that person, as defined in section 190.05,
21.9subdivision 5c.
21.10    (k) "Veteran" has the meaning given in section 197.447, and also includes a service
21.11member who has fulfilled the requirements for being a veteran but is still serving actively
21.12in the United States armed forces.
21.13    Subd. 3. Program established. There is established a program to provide
21.14postsecondary educational assistance to eligible Minnesota veterans and to the children
21.15and spouses of deceased and severely disabled Minnesota veterans. This program may be
21.16cited as the "Minnesota GI Bill program."
21.17    The director, in consultation with the commissioner and in cooperation with
21.18eligible postsecondary educational institutions, shall expend a biennial appropriation
21.19for the purpose of providing postsecondary educational assistance to eligible persons
21.20in accordance with this program. Each public postsecondary educational institution in
21.21the state must participate in the program and each private postsecondary educational
21.22institution in the state is encouraged to participate in the program. Any participating
21.23private institution may suspend or terminate its participation in the program at the end
21.24of any semester or other academic term.
21.25    Subd. 4. Duties; responsibilities. (a) The director, in consultation with the
21.26commissioner, shall establish policies and procedures including, but not limited to,
21.27procedures for student application record keeping, information sharing, payment to
21.28participating eligible institutions, and other procedures the director considers appropriate
21.29and necessary for effective and efficient administration of the program established in
21.30this section.
21.31    (b) The director, in consultation with the commissioner, may delegate part or
21.32all of the administrative procedures for the program to responsible representatives of
21.33participating eligible institutions.
21.34    Subd. 5. Eligibility. (a) A person is eligible for educational assistance under this
21.35section if:
22.1    (1) the person is:
22.2    (i) a veteran who is serving or has served honorably in any branch or unit of the
22.3United States armed forces at any time on or after August 2, 1990;
22.4    (ii) a nonveteran who has served honorably for a total of sixteen years or more
22.5cumulatively as a member of the Minnesota national guard or any other active or reserve
22.6component of the United States armed forces, and any part of that service occurred on
22.7or after August 2, 1990;
22.8(iii) the surviving spouse or child of a person who has served in the military at any
22.9time on or after August 2, 1990, who died within 360 days of being discharged from
22.10active duty;
22.11    (iv) the surviving spouse or child of a person described in (i) or (ii) who has died as
22.12a direct result of that military service; or
22.13    (v) the spouse or child of a person described in (i) or (ii) who has a total
22.14and permanent service-connected disability as rated by the United States veterans
22.15administration;
22.16    (2) the person described in clause (1), item (i) or (ii) had Minnesota as the person's
22.17state of residence at the time of the person's initial enlistment or any reenlistment in
22.18the United States armed forces;
22.19    (3) the person receiving the educational assistance is a Minnesota resident, as
22.20defined in section 136A.101, subdivision 8; and
22.21    (4) the person receiving the educational assistance is an eligible student.
22.22    (b) A person's eligibility terminates when the person becomes eligible for benefits
22.23under section 135A.52.
22.24    (c) As proof of honorable service and disability or death status for a veteran or
22.25service member, the director, by policy and in consultation with the commissioner, may
22.26require official documentation, including the person's federal form DD-214 or other official
22.27military discharge papers, correspondence from the United States veterans administration,
22.28birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed
22.29affidavits, proof of residency, proof of identity, or any other official documentation the
22.30director considers necessary to determine an applicant's eligibility status.
22.31    (d) The director, in consultation with the commissioner, may deny eligibility or
22.32terminate benefits under this section to any person who has not provided sufficient proof of
22.33eligibility for the program. An applicant may appeal the director's eligibility determination
22.34in writing to the director at any time. The director must rule on any application or appeal
22.35within 30 days of receipt of all documentation that the director requires. Upon receiving
22.36an application with insufficient documentation, the director must notify the applicant
23.1within 30 days of receipt of the application that the application is being suspended pending
23.2receipt by the director of sufficient documentation from the applicant. The decision of the
23.3director regarding an appeal is final; however, an applicant whose appeal of an eligibility
23.4determination has been rejected by the director may submit an additional appeal of that
23.5determination in writing to the director at any time that the applicant is able to provide
23.6substantively significant additional information relating to the person's eligibility for the
23.7program. An approval of an applicant's eligibility by the director following an appeal by
23.8the applicant is not retroactively effective beyond the later of one year previously or the
23.9semester of the person's original application.
23.10    Subd. 6. Benefit amount. (a) On approval by the director of an applicant's
23.11eligibility for the program, the applicant shall be awarded, on a funds-available basis, the
23.12educational assistance under the program for use at any time according to program rules
23.13at any eligible institution. Eligibility for the program terminates upon exhaustion of a
23.14person's benefits as specified in paragraph (c).
23.15    (b) The amount of educational assistance in any semester or term for an eligible
23.16person must be determined by subtracting from the eligible person's cost of attendance
23.17at that eligible public institution, or in the case of an eligible private institution the cost
23.18of attendance for a comparable program at the Twin Cities campus of the University of
23.19Minnesota, the amount the person received or was eligible to receive in that semester
23.20or term from:
23.21    (1) the federal Pell Grant;
23.22    (2) the state grant under section 136A.121; and
23.23    (3) any federal military or veterans educational benefits, including, but not limited
23.24to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
23.25vocational rehabilitation benefits, and any other federal benefits associated with the
23.26person's status as a veteran, except veterans disability payments from the United States
23.27Department of Veterans Affairs.
23.28    (c) The amount of education assistance for any eligible person must not exceed any
23.29of the following amounts:
23.30    (1) $1,250 per semester or term of enrollment, or in the case of a part-time student
23.31$625 per semester or term of enrollment;
23.32    (2) $3,570 per state fiscal year; and
23.33    (3) $10,000 total.
23.34EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
23.35qualifying coursework taken on or after that date.

24.1    Sec. 3. ANNUAL REVIEW AND RECOMMENDATION.
24.2    The commissioner of veterans affairs, in consultation with the director of higher
24.3education, must annually review veterans' participation level in and expenditures for the
24.4Minnesota GI Bill Program in section 197.791 and, by January 15 each year, must make
24.5recommendations to the chairs of the Senate and House committees having oversight
24.6responsibility for veterans affairs regarding adjustment of individual benefit levels and
24.7program funding.


24.10    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:
24.11    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing
24.12involving the Minnesota Office of Higher Education and other institutions is governed
24.13by sections section 136A.05 and 136A.08, subdivision 8.
24.14    (b) Student financial aid. Data collected and used by the Minnesota Office of
24.15Higher Education on applicants for financial assistance are classified under section
24.16136A.162 .
24.17    (c) Minnesota college savings plan data. Account owner data, account data, and
24.18data on beneficiaries of accounts under the Minnesota college savings plan are classified
24.19under section 136G.05, subdivision 10.
24.20    (d) School financial records. Financial records submitted by schools registering
24.21with the Minnesota Office of Higher Education are classified under section 136A.64.
24.22    (e) Enrollment and financial aid data. Data collected from eligible institutions on
24.23student enrollment and federal and state financial aid are governed by sections 136A.121,
24.24subdivision 18, and 136A.1701, subdivision 11.

24.25    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision
24.26to read:
24.27    Subd. 4. Construction management education surcharge and account. (a)
24.28For nonresidential construction building permits, the surcharge under subdivision 1
24.29is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents,
24.30whichever amount is greater, and designated for and deposited in the construction
24.31management education account.
24.32    (b) The construction management education account is created as an account in the
24.33special revenue fund, administered by the Office of Higher Education for the purpose
24.34of enhancing construction management education in public postsecondary institutions.
24.35Funds in the account are appropriated to the director of the Office of Higher Education for
24.36the purposes of section 136A.127.

25.1    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:
25.2    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture
25.3Education Leadership Council is established. The council is composed of 16 17 members
25.4as follows:
25.5    (1) the chair of the University of Minnesota agricultural education program;
25.6    (2) a representative of the commissioner of education;
25.7    (3) a representative of the Minnesota State Colleges and Universities recommended
25.8by the chancellor;
25.9    (4) the president and the president-elect of the Minnesota Association of Agriculture
25.10Educators;
25.11    (5) a representative of the Future Farmers of America Foundation;
25.12    (6) a representative of the commissioner of agriculture;
25.13    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the
25.14University of Minnesota;
25.15    (8) a representative of the Minnesota Private Colleges Council;
25.16    (9) two members representing agriculture education and agriculture business
25.17appointed by the governor;
25.18    (9) (10) the chair of the senate Committee on Agriculture, General Legislation
25.19and Veterans Affairs;
25.20    (10) (11) the chair of the house Committee on Agriculture;
25.21    (11) (12) the ranking minority member of the senate Committee on Agriculture,
25.22General Legislation and Veterans Affairs, and a member of the senate Education
25.23Committee designated by the Subcommittee on Committees of the Committee on Rules
25.24and Administration; and
25.25    (12) (13) the ranking minority member of the house Agriculture Committee, and a
25.26member of the house Education Committee designated by the speaker.
25.27    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7),
25.28(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement
25.29member representing the same constituency.

25.30    Sec. 4. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:
25.31    Subd. 7. Reports. Instructional expenditure and enrollment data for each
25.32instructional category shall be submitted by the public postsecondary systems to the
25.33Minnesota Office of Higher Education and the Department of Finance and included in the
25.34biennial budget document. The specific data shall be submitted only after the director of
25.35the Minnesota Office of Higher Education has consulted with a data advisory task force to
25.36determine the need, content, and detail of the information.

26.1    Sec. 5. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:
26.2    Subd. 2. Performance and accountability. Higher education systems and
26.3campuses are expected to achieve the objectives in subdivision 1 and will be held
26.4accountable for doing so. The legislature is increasing the flexibility of the systems and
26.5campuses to provide greater responsibility to higher education in deciding how to achieve
26.6statewide objectives, and to decentralize authority so that those decisions can be made
26.7at the level where the education is delivered. To demonstrate their accountability, the
26.8legislature expects each system and campus to measure and report on its performance,
26.9using meaningful indicators that are critical to achieving the objectives in subdivision 1,
26.10as provided in section 135A.033. Nothing in this section precludes a system or campus
26.11from determining its own objectives and performance measures beyond those identified
26.12in this section.

26.13    Sec. 6. [135A.104] STUDENT READINESS FOR COLLEGE.
26.14    To reduce students' and the state of Minnesota's remedial education costs and
26.15encourage students to take an academically sound high school curriculum, the Minnesota
26.16State Colleges and Universities, in cooperation with the commissioner of education must
26.17offer the assessment of college readiness test to high school students. The test must be
26.18offered to students no later than the eleventh grade, allowing the students to makeup any
26.19identified deficiencies while they are still in high school.

26.20    Sec. 7. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:
26.21    Subdivision 1. Definitions. As used in this section, the following terms have the
26.22meanings given them.
26.23    (a) "Administrator" means the administrator of the institution or other person with
26.24general control and supervision of the institution.
26.25    (b) "Public or private postsecondary educational institution" or "institution" means
26.26any of the following institutions having an enrollment of more than 100 persons during
26.27any quarter, term, or semester during the preceding year: (1) the University of Minnesota;
26.28(2) the state universities; (3) the state community colleges; (4) public technical colleges;
26.29(5) private four-year, professional and graduate institutions; (6) private two-year colleges;
26.30and (7) schools subject to either chapter 141, sections 136A.61 136A.615 to 136A.71, or
26.31schools exempt under section 136A.657, and which offer educational programs within the
26.32state for an academic year greater than six consecutive months. An institution's report to
26.33the Minnesota Office of Higher Education or the Minnesota Department of Education may
26.34be considered when determining enrollment.
26.35    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota
26.36high school in 1997 or later, and who is (1) registering for more than one class during
27.1a full academic term, such as a quarter or a semester or (2) housed on campus and is
27.2registering for one or more classes. Student does not include persons enrolled in extension
27.3classes only or correspondence classes only.

27.4    Sec. 8. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:
27.5    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years
27.6of age before the beginning of any term, semester or quarter, in which a course of study is
27.7pursued, or a person receiving a Railroad Retirement annuity who has reached 60 years
27.8of age before the beginning of the term.

27.9    Sec. 9. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:
27.10    Subdivision 1. Fees and tuition. Except for an administration fee established by the
27.11governing board at a level to recover costs, to be collected only when a course is taken for
27.12credit, a senior citizen who is a legal resident of Minnesota is entitled without payment
27.13of tuition or activity fees to attend courses offered for credit, audit any courses offered
27.14for credit, or enroll in any noncredit courses in any state supported institution of higher
27.15education in Minnesota when space is available after all tuition-paying students have been
27.16accommodated. A senior citizen enrolled under this section must pay any materials,
27.17personal property, or service charges for the course. In addition, a senior citizen who is
27.18enrolled in a course for credit must pay an administrative fee in an amount established
27.19by the governing board of the institution to recover the course costs. There shall be no
27.20administrative fee charges to a senior citizen auditing a course. For the purposes of this
27.21section and section 135A.51, the term "noncredit courses" shall not include those courses
27.22designed and offered specifically and exclusively for senior citizens.
27.23    The provisions of this section and section 135A.51 do not apply to noncredit courses
27.24designed and offered by the University of Minnesota, and the Minnesota State Colleges
27.25and Universities specifically and exclusively for senior citizens. Senior citizens enrolled
27.26under the provisions of this section and section 135A.51 shall not be included by such
27.27institutions in their computation of full-time equivalent students when requesting staff
27.28or appropriations.

27.29    Sec. 10. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:
27.30    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there
27.31shall be no limit to the number of terms, quarters or semesters a senior citizen may attend
27.32courses, nor income limitation imposed in determining eligibility.
27.33    (b) A senior citizen enrolled in a closed enrollment contract training or professional
27.34continuing education program is not eligible for benefits under subdivision 1.

27.35    Sec. 11. [136A.002] DEFINITIONS.
28.1    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
28.2have the meanings given them.
28.3    Subd. 2. Office of Higher Education; office. "Office of Higher Education" or
28.4"office" means the Minnesota Office of Higher Education.

28.5    Sec. 12. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:
28.6    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
28.7for:
28.8    (1) necessary state level administration of financial aid programs, including
28.9accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
28.10financial aid programs to the governor and the legislature;
28.11    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
28.12and career schools, under sections 136A.61 136A.615 to 136A.71 and chapter 141;
28.13    (3) administering the Learning Network of Minnesota;
28.14    (4) negotiating and administering reciprocity agreements;
28.15    (5) publishing and distributing financial aid information and materials, and other
28.16information and materials under section 136A.87, to students and parents;
28.17    (6) collecting and maintaining student enrollment and financial aid data and
28.18reporting data on students and postsecondary institutions to develop and implement a
28.19process to measure and report on the effectiveness of postsecondary institutions;
28.20    (7) administering the federal programs that affect students and institutions on a
28.21statewide basis; and
28.22    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
28.23administer the programs under its supervision.

28.24    Sec. 13. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:
28.25    Subd. 5. Expiration. Notwithstanding section 15.059, subdivision 5, the advisory
28.26groups established in this section do not expire on June 30, 2007.

28.27    Sec. 14. Minnesota Statutes 2006, section 136A.0411, is amended to read:
28.28136A.0411 COLLECTING FEES.
28.29    The office may charge fees for seminars, conferences, workshops, services, and
28.30materials. The office may collect fees for registration and licensure of private institutions
28.31under sections 136A.61 136A.615 to 136A.71 and chapter 141. The money is annually
28.32appropriated to the office.

28.33    Sec. 15. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:
29.1    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually,
29.2before the last day in January, submit a report to the committees in the house of
29.3representatives and the senate with responsibility for higher education finance on:
29.4    (1) participation in the tuition reciprocity program by Minnesota students and
29.5students from other states attending Minnesota postsecondary institutions under a
29.6reciprocity agreement;
29.7    (2) reciprocity and resident tuition rates at each institution; and
29.8    (3) interstate payments and obligations for each state participating in the tuition
29.9reciprocity program in the prior year.; and
29.10    (4) summary statistics on number of graduates by institution, degree granted, and
29.11year of graduation for reciprocity students who attended Minnesota postsecondary
29.12institutions.

29.13    Sec. 16. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:
29.14    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
29.15educational institution located in this state or in a state with which the office has entered
29.16into a higher education reciprocity agreement on state student aid programs that either (1)
29.17is operated by this state or the Board of Regents of the University of Minnesota, or (2) is
29.18operated publicly or privately and, as determined by the office, meets all of the following:
29.19(i) maintains academic standards substantially equivalent to those of comparable
29.20institutions operated in this state; (ii) is licensed or registered as a postsecondary institution
29.21by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal
29.22Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.

29.23    Sec. 17. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
29.24    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
29.25responsibility for covering the recognized cost of attendance by the applicant, the
29.26applicant's family, and the government. The amount of a financial stipend must not
29.27exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
29.28deducting the following:
29.29    (1) the assigned student responsibility of at least 46 45.5 percent of the cost of
29.30attending the institution of the applicant's choosing;
29.31    (2) the assigned family responsibility as defined in section 136A.101; and
29.32    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.
29.33    The minimum financial stipend is $100 per academic year.

29.34    Sec. 18. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:
30.1    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
30.2the applicant:
30.3    (1) is a resident of the state of Minnesota;
30.4    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
30.5disabled as defined in section 125A.02, and who is receiving or will receive care on a
30.6regular basis from a licensed or legal, nonlicensed caregiver;
30.7    (3) is income eligible as determined by the office's policies and rules, but is not a
30.8recipient of assistance from the Minnesota family investment program;
30.9    (4) has not earned a baccalaureate degree and has been enrolled full time less than
30.10eight semesters or the equivalent;
30.11    (5) is pursuing a nonsectarian program or course of study that applies to an
30.12undergraduate degree, diploma, or certificate;
30.13    (6) is enrolled at least half time in an eligible institution; and
30.14    (7) is in good academic standing and making satisfactory academic progress.
30.15    (b) A student who withdraws from enrollment for active military service is entitled
30.16to an additional semester or the equivalent of grant eligibility and will be considered to be
30.17in continuing enrollment status upon return.

30.18    Sec. 19. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS;
30.19MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.
30.20    Subdivision 1. TEACH. The teacher education and compensation helps program
30.21(TEACH) is established to provide tuition scholarships, education incentives, and an early
30.22childhood teacher retention program to provide retention incentives to early care and
30.23education providers. The director shall make a grant with appropriations for this purpose
30.24to a nonprofit organization licensed to administer the TEACH early childhood program.
30.25    Subd. 2. Program components. (a) The nonprofit organization must use the
30.26grant for:
30.27    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally
30.28recognized child development associate credential or college-level courses leading to an
30.29associate's or bachelor's degree in early childhood development and school-age care; and
30.30    (2) education incentives of a minimum of $100 to participants in the tuition
30.31scholarship program if they complete a year of working in the early care and education
30.32field.
30.33    (b) Applicants for the scholarship must be employed by a licensed early childhood
30.34or child care program and working directly with children, a licensed family child care
30.35provider, or an employee in a school-age program exempt from licensing under section
30.36245A.03, subdivision 12. Lower wage earners must be given priority in awarding
31.1the tuition scholarships. Scholarship recipients must contribute ten percent of the total
31.2scholarship and must be sponsored by their employers, who must also contribute ten
31.3percent of the total scholarship. Scholarship recipients who are self-employed must
31.4contribute 20 percent of the total scholarship.
31.5    (c) The organization must also use the grant for teacher retention incentives of
31.6$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives
31.7must be employed by a licensed early childhood or child care program and working
31.8directly with children, a licensed family child care provider, or an employee in a
31.9school-age program exempt from licensing under section 245A.03, subdivision 12.
31.10Lower wage earners must be given priority for the retention incentives. The amount of
31.11the retention incentive must be based on the applicant's level of education at the time of
31.12application. A provider is eligible for the retention incentive if the provider:
31.13    (1) has worked in the field for at least one year and has been working at the same
31.14location for at least one year at the time of application;
31.15    (2) agrees to remain in the provider's current position for a period of at least one
31.16year; and
31.17    (3) has an associate's or bachelor's degree or a child development associate's degree.
31.18    Subd. 3. Advisory committee. The TEACH early childhood and Minnesota early
31.19childhood teacher retention programs must have an advisory board as prescribed by the
31.20national TEACH organization.

31.21    Sec. 20. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION
31.22PROGRAM.
31.23    Subdivision 1. Construction Management Education Account Advisory
31.24Committee. The director must establish an advisory committee for the construction
31.25management education account. Members of the committee must include: the executive
31.26director of the Associated General Contractors of Minnesota or designee, two members
31.27of the nonresidential construction industry, and a construction management program
31.28coordinator or director from an accredited construction management program in the
31.29Minnesota State Colleges and Universities. Members serve three-year terms. Advisory
31.30committee members are reimbursed for expenses related to committee activities. The
31.31director may accept funds from federal, state, or local public agencies, or from private
31.32foundations or individuals for deposit into the construction management education
31.33account under section 16B.70. All money in the account must be used for the purposes
31.34of this section.
32.1    Subd. 2. Grants. Grants from the Construction Management Education Account
32.2must be used to maintain and increase the quality and availability of education programs
32.3for the construction industry by awarding grants to accredited construction management
32.4programs in the Minnesota State Colleges and Universities. Grants must be used to
32.5maintain and upgrade facilities and provide greater industry access to modern construction
32.6standards and management practices. In making grants, the director, in consultation with
32.7the committee, must:
32.8    (1) confirm the qualifications of any program applying for a grant;
32.9    (2) affirm applications for American Council for Construction Education
32.10accreditation and, when funds are available, award grants to complete the accreditation
32.11process;
32.12    (3) promote close ties between technical and community colleges and four-year
32.13construction management programs; and
32.14    (4) support the development of new educational programs with specific emphasis on
32.15outreach to the construction industry at large.
32.16    Subd. 3. Grant awards. (a) The committee may award grants to a Minnesota State
32.17Colleges and Universities institution to support construction management education and to
32.18promote outreach and continuing education in the construction industry.
32.19    (b) An eligible institution must provide one of the following:
32.20    (1) a bachelor of science construction management degree accredited by the
32.21American Council for Construction Education;
32.22    (2) a degree with an American Council for Construction Education accredited
32.23option, including, but not limited to, Engineering Technology and Industrial Technology;
32.24    (3) a bachelor of science degree program documenting placement of more than 50
32.25percent of their graduates with Minnesota nonresidential contractors; and
32.26    (4) the development of a construction management curriculum to meet the American
32.27Council for Construction Education criteria.
32.28    (c) Grant awards may be made as follows:
32.29    (1) $3,000 per graduate during the past academic year up to a maximum of $100,000
32.30for institutions qualifying under paragraph (b), clause (1);
32.31    (2) $3,000 per graduate during the past academic year up to a maximum of $100,000
32.32for institutions qualifying under paragraph (b), clause (2);
32.33    (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the
32.34past academic year to a maximum of $20,000 for institutions qualifying under paragraph
32.35(c), clause (3);
33.1    (4) up to $25,000 for the purpose of becoming accredited by the American Council
33.2for Construction Education for two years which may be renewed if the institution is
33.3continuing progress towards accreditation; and
33.4    (5) for faculty recruitment and development in construction management programs,
33.5including support for postgraduate work leading to advanced degrees, visiting lecturer
33.6compensation and expenses, teaching assistant positions, and faculty positions; and
33.7    (6) to support general classroom and laboratory operating expenses.
33.8    Grants may only be awarded from the construction management education account
33.9to the extent that funds are available. No other state funding may be provided for these
33.10grants.
33.11    Subd. 4. Reports. (a) The director must annually report to the committees of the
33.12legislature responsible for higher education finance by January 15. The report must
33.13include the names of the public postsecondary educational institutions receiving grants,
33.14the amount of the grant, the purposes for each grant, the number of students served, the
33.15number of placements made to the construction industry for the previous academic year.
33.16    (b) After receiving an initial grant, the president of the public postsecondary
33.17educational institution must annually submit a report to the director listing the amount of
33.18all past grants awarded from the construction management education account and the uses
33.19of those funds. The report must be submitted with a request for a new or continuing grant
33.20and at a minimum must include the following:
33.21    (1) the number of graduates placed with the Minnesota contractors during the
33.22previous academic year;
33.23    (2) the expected enrollment in construction management courses in the upcoming
33.24academic year; and
33.25    (3) continuing education and extension courses offered in construction management
33.26during the previous academic year and their enrollments.
33.27    Subd. 5. Administration. Up to $15,000 per year from the construction
33.28management education account may be used for the administration of this program.

33.29    Sec. 21. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:
33.30    Subdivision 1. Scope. For purposes of sections 136A.15 to 136A.1702 136A.1701,
33.31the terms defined in this section have the meanings ascribed to given them.

33.32    Sec. 22. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:
33.33    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary
33.34educational institution that either (1) is operated or regulated by this state, or the Board of
33.35Regents of the University of Minnesota; (2) is operated publicly or privately in another
34.1state, is approved by the United States Secretary of Education, and, as determined by
34.2the office, maintains academic standards substantially equal to those of comparable
34.3institutions operated in this state; (3) is licensed or registered as a postsecondary institution
34.4by the office or another state agency; and (4) by July 1, 2011, is participating in the federal
34.5Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It
34.6also includes any institution chartered in a province.

34.7    Sec. 23. Minnesota Statutes 2006, section 136A.16, subdivision 1, is amended to read:
34.8    Subdivision 1. Designation. Notwithstanding chapter 16C, the Minnesota Office of
34.9Higher Education is designated as the administrative agency for carrying out the purposes
34.10and terms of sections 136A.15 to 136A.1702 136A.1701. The office may establish one
34.11or more loan programs.

34.12    Sec. 24. Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read:
34.13    Subd. 2. Rules. The office shall adopt policies and prescribe appropriate rules to
34.14carry out the purposes of sections 136A.15 to 136A.1702 136A.1701. The policies and
34.15rules except as they relate to loans under section 136A.1701 must be compatible with
34.16the provisions of the National Vocational Student Loan Insurance Act of 1965 and the
34.17provisions of title IV of the Higher Education Act of 1965, and any amendments thereof.

34.18    Sec. 25. Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read:
34.19    Subd. 5. Agencies. The office may contract with guarantee agencies, insurance
34.20agencies, collection agencies, or any other person, to carry out the purposes of sections
34.21136A.15 to 136A.1702 136A.1701.

34.22    Sec. 26. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:
34.23    Subd. 8. Investment. Money made available to the office that is not immediately
34.24needed for the purposes of sections 136A.15 to 136A.1702 136A.1701 may be invested
34.25by the office. The money must be invested in bonds, certificates of indebtedness, and
34.26other fixed income securities, except preferred stocks, which are legal investments for the
34.27permanent school fund. The money may also be invested in prime quality commercial
34.28paper that is eligible for investment in the state employees retirement fund. All interest
34.29and profits from such investments inure to the benefit of the office or may be pledged for
34.30security of bonds issued by the office or its predecessor, the Minnesota Higher Education
34.31Coordinating Board.

34.32    Sec. 27. Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read:
34.33    Subd. 9. Staff. The office may employ the professional and clerical staff the
34.34director deems necessary for the proper administration of the loan programs established
34.35and defined by sections 136A.15 to 136A.1702 136A.1701.

35.1    Sec. 28. Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read:
35.2    Subd. 10. Director. Subject to its directives and review, the office may delegate to
35.3the director the responsibility for issuance of public information concerning provisions of
35.4sections 136A.15 to 136A.1702 136A.1701, for design of loan application forms, and for
35.5prescribing procedures for submission of applications for loans.

35.6    Sec. 29. Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read:
35.7    Subdivision 1. Eligibility. A student is eligible to apply for a loan under sections
35.8136A.15 to 136A.1702 136A.1701 if the office finds that the student is an eligible student
35.9as defined in those sections and is eligible for a loan under federal laws and regulations
35.10governing the federal guaranteed student loan programs.

35.11    Sec. 30. Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to
35.12read:
35.13    Subdivision 1. Establishment of program. The Minnesota Office of Higher
35.14Education may provide for programs of loans which may be made in lieu of or in addition
35.15to loans authorized under sections 136A.15 to 136A.1702 136A.1701 and applicable
35.16provisions of federal law as provided in this section.

35.17    Sec. 31. Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to
35.18read:
35.19    Subd. 2. Purpose of program. The purpose of the loan programs under this section
35.20is to provide financial assistance for the postsecondary education of students who are
35.21eligible students whether or not such students qualify for a loan or loans under other
35.22provisions of sections 136A.15 to 136A.1702 136A.1701.
35.23    Loans granted to students may be used solely for educational purposes.

35.24    Sec. 32. Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to
35.25read:
35.26    Subd. 5. Maximum loans for students. Loans made under this section or sections
35.27136A.15 to 136A.1702 136A.1701 to an individual eligible student for vocational study
35.28may be made for a maximum of three academic years or their equivalent and loans made
35.29to any other individual eligible student may be made for a maximum of eight academic
35.30years or their equivalent.

35.31    Sec. 33. [136A.1704] LOAN FORGIVENESS PROGRAM FOR
35.32SPEECH-LANGUAGE PATHOLOGISTS.
35.33    Subdivision 1. Creation of account. A loan forgiveness program account is
35.34established in the special revenue fund in the state treasury to promote the recruitment and
35.35retention of licensed speech-language pathologists to work with students with speech or
36.1hearing disorders. Money appropriated to this account does not cancel but is available
36.2until expended. Money in the account is appropriated to the director of the Minnesota
36.3Office of Higher Education for the purpose of this section.
36.4    Subd. 2. Eligibility for loan forgiveness. A student loan administered by the
36.5Minnesota Office of Higher Education under section 136A.16, subdivision 1, may be
36.6forgiven if the recipient graduates from a postsecondary institution with a degree in
36.7speech-language pathology, becomes licensed to work with students with speech and
36.8hearing disorders as defined in Minnesota Rules, part 3525.1343, and is employed as a
36.9speech-language pathologist with primary responsibilities to work with students who are
36.10diagnosed with speech or hearing disorders.
36.11    Subd. 3. Loan forgiveness. (a) To the extent of available appropriations, one-fourth
36.12of the principal of the outstanding loan amount shall be forgiven for each year of eligible
36.13employment or a pro rata amount for eligible employment during part of a school year,
36.14part-time employment, or other eligible part-time work. Loans for $2,500 or less may be
36.15forgiven at the rate of up to $1,250 per year. Employment with the following Minnesota
36.16schools and programs is eligible for determining loan forgiveness:
36.17    (1) a school or program operated by a school district or a group of school districts;
36.18    (2) a tribal contract school eligible to receive aid according to section 124D.83;
36.19    (3) a charter school;
36.20    (4) a private school;
36.21    (5) a Head Start program;
36.22    (6) an early childhood family education program; or
36.23    (7) a program providing early intervention services to children with disabilities
36.24who have not entered kindergarten.
36.25    (b) If an eligible recipient has an outstanding loan administered by the Minnesota
36.26Office of Higher Education, the duty to make payments of principal and interest may
36.27be deferred during any time period the person is enrolled at least one-half time in an
36.28advanced degree program in a field related to working with students with speech or
36.29hearing disabilities. To defer loan obligations, the person shall provide written notification
36.30to the Minnesota Office of Higher Education.
36.31    (c) The Minnesota Office of Higher Education shall approve the loan forgiveness
36.32and deferral, and develop procedures to administer the program.

36.33    Sec. 34. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:
36.34    Subd. 3. Payments. Work-study payments shall be made to eligible students by
36.35postsecondary institutions as provided in this subdivision.
37.1    (a) Students shall be selected for participation in the program by the postsecondary
37.2institution on the basis of student financial need.
37.3    (b) In selecting students for participation, priority must be given to students enrolled
37.4for at least 12 credits. In each academic year, a student may be awarded work-study
37.5payments for one period of nonenrollment or less than half-time enrollment if the student
37.6will enroll on at least a half-time basis during the following academic term.
37.7    (c) Students will be paid for hours actually worked and the maximum hourly rate
37.8of pay shall not exceed the maximum hourly rate of pay permitted under the federal
37.9college work-study program.
37.10    (d) Minimum pay rates will be determined by an applicable federal or state law.
37.11    (e) The office shall annually establish a minimum percentage rate of student
37.12compensation to be paid by an eligible employer.
37.13    (f) Each postsecondary institution receiving money for state work-study grants
37.14shall make a reasonable effort to place work-study students in employment with eligible
37.15employers outside the institution. However, a public employer other than the institution
37.16may not terminate, lay off, or reduce the working hours of a permanent employee for the
37.17purpose of hiring a work-study student, or replace a permanent employee who is on layoff
37.18from the same or substantially the same job by hiring a work-study student.
37.19    (g) The percent of the institution's work-study allocation provided to graduate
37.20students shall not exceed the percent of graduate student enrollment at the participating
37.21institution.
37.22    (h) An institution may use up to 30 percent of its allocation for student internships
37.23with private, for-profit employers.

37.24    Sec. 35. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:
37.25    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered
37.26to issue revenue bonds whose aggregate principal amount at any time shall not exceed
37.27$800,000,000 $950,000,000 and to issue notes, bond anticipation notes, and revenue
37.28refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42,
37.29to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling,
37.30renovating, improving, furnishing, or equipping one or more projects or parts thereof.

37.31    Sec. 36. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:
37.32    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education
37.33shall award grants to foster postsecondary attendance and retention by providing outreach
37.34services to historically underserved students in grades six through 12 and historically
37.35underrepresented college students. Grants must be awarded to programs that provide
37.36precollege services, including, but not limited to:
38.1    (1) academic counseling;
38.2    (2) mentoring;
38.3    (3) fostering and improving parental involvement in planning for and facilitating a
38.4college education;
38.5    (4) services for students with English as a second language;
38.6    (5) academic enrichment activities;
38.7    (6) tutoring;
38.8    (7) career awareness and exploration;
38.9    (8) orientation to college life;
38.10    (9) assistance with high school course selection and information about college
38.11admission requirements; and
38.12    (10) financial aid counseling.
38.13    Grants shall be awarded to postsecondary institutions, professional organizations,
38.14community-based organizations, or others deemed appropriate by the director.
38.15    Grants shall be awarded for one year and may be renewed for a second year with
38.16documentation to the Minnesota Office of Higher Education of successful program
38.17outcomes.

38.18    Sec. 37. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:
38.19    Subd. 2. Eligible students. Eligible students include students in grades six through
38.2012 who meet one or more of the following criteria:
38.21    (1) are counted under section 1124(c) of the Elementary and Secondary Education
38.22Act of 1965 (Title I);
38.23    (2) are eligible for free or reduced-price lunch under the National School Lunch Act;
38.24    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title
38.25I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
38.26    (4) are a member of a group traditionally underrepresented in higher education.
38.27    Eligible undergraduate students include those who met the student eligibility criteria
38.28as 6th through 12th graders.

38.29    Sec. 38. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:
38.30    Subd. 3. Application process. The director of the Minnesota Office of Higher
38.31Education shall develop a grant application process. The director shall attempt to support
38.32projects in a manner that ensures that eligible students throughout the state have access
38.33to precollege program services.
38.34    The grant application must include, at a minimum, the following information:
38.35    (1) a description of the characteristics of the students to be served reflective of the
38.36need for services listed in subdivision 1;
39.1    (2) a description of the services to be provided and a timeline for implementation of
39.2the activities;
39.3    (3) a description of how the services provided will foster postsecondary attendance
39.4and support postsecondary retention;
39.5    (4) a description of how the services will be evaluated to determine whether the
39.6program goals were met; and
39.7    (5) other information as identified by the director.
39.8Grant recipients must specify both program and student outcome goals, and performance
39.9measures for each goal.

39.10    Sec. 39. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:
39.11    Subd. 6. Program evaluation. Each grant recipient must annually submit a report
39.12to the Minnesota Office of Higher Education delineating its program and student outcome
39.13goals, and activities implemented to achieve the stated outcomes. The goals must be
39.14clearly stated and measurable. Grant recipients are required to collect, analyze, and report
39.15on participation and outcome data that enable the office to verify that the program goals
39.16were met. The office shall maintain:
39.17    (1) information about successful precollege program and undergraduate student
39.18retention program activities for dissemination to individuals throughout the state interested
39.19in adopting or replicating successful program practices; and
39.20    (2) data on the success of the funded projects in increasing the high school
39.21graduation and, college participation, and college graduation rates of students served
39.22by the grant recipients. The office may convene meetings of the grant recipients, as
39.23needed, to discuss issues pertaining to the implementation of precollege services and
39.24undergraduate retention programs.

39.25    Sec. 40. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:
39.26    Subdivision 1. Membership. The board consists of 15 17 members appointed by
39.27the governor with the advice and consent of the senate. At least one member of the board
39.28must be a resident of each congressional district. Three members must be students who are
39.29enrolled at least half time in a degree, diploma, or certificate program or have graduated
39.30from an institution governed by the board within one year of the date of appointment. The
39.31student members shall include: one member from a community college, one member from
39.32a state university, and one member from a technical college. Two members must be
39.33members of the AFL-CIO. The remaining members must be appointed to represent the
39.34state at large.

39.35    Sec. 41. [136F.045] UNION MEMBER SELECTION.
40.1    Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting,
40.2screening and recommending qualified candidates for their members of the board. The
40.3AFL-CIO must develop a statement of selection criteria for board membership and a
40.4process for recommending candidates. Beginning in 2008, and every six years thereafter,
40.5the AFL-CIO must recommend four candidates for the two board positions to the Governor
40.6by April 15. The governor must appoint two of the candidates to the board of trustees.

40.7    Sec. 42. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:
40.8    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board,
40.9in consultation with the commissioners of employee relations and finance, may develop
40.10policies to allow system office or campus employees on salaries, as defined in section
40.1143A.17, subdivision 1 , to use negative time reporting in which employees report only that
40.12time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation
40.13with the commissioners of employee relations and finance, shall evaluate the use of
40.14negative time reporting and its potential for use with other state employees.

40.15    Sec. 43. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:
40.16    Subd. 2. Activity funds. All receipts attributable to the state colleges and
40.17universities activity funds and deposited in the state treasury are appropriated to the board
40.18and are not subject to budgetary control as exercised by the commissioner of finance.

40.19    Sec. 44. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision
40.20to read:
40.21    Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall
40.22have authority to control the amount and manner of deposit of all receipts described in
40.23this section in depositories selected by the board. The board's authority shall include
40.24specifying the considerations, financial activities, and conditions required from the
40.25depository, including the requirement of collateral security or a corporate surety bond
40.26as described in section 118A.03. The board may compensate the depository, including
40.27paying a reasonable charge to the depository, maintaining appropriate compensating
40.28balances with the depository, or purchasing non-interest-bearing certificates of deposit
40.29from the depository for performing depository-related services.

40.30    Sec. 45. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:
40.31    Subd. 5. Amount of matching grant. The amount of the matching grant for a
40.32beneficiary equals:
40.33    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum
40.34of the contributions made to the beneficiary's account during the calendar year, not to
40.35exceed $300 $400; and
41.1    (2) if the beneficiary's family income is more than $50,000 but not more than
41.2$80,000, five ten percent of the sum of the contributions made to the beneficiary's account
41.3during the calendar year, not to exceed $300 $400.

41.4    Sec. 46. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE
41.5AT WORTHINGTON; YMCA LEASE AGREEMENT.
41.6    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter
41.7into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on
41.8the Minnesota West Community and Technical College at Worthington campus for the
41.9construction of a YMCA facility. The lease may also include the city of Worthington.
41.10    (b) Siting and design of the facility must be consistent with the college's master
41.11plan and Minnesota State Colleges and Universities' building standards. Minnesota
41.12West Community and Technical College may negotiate for use of the facility for college
41.13purposes. The lease must contain a provision that the lease shall terminate if the improved
41.14property is no longer used for the partial benefit of the students at the Worthington campus.

41.15    Sec. 47. INTEREST RATE SWAP AND OTHER AGREEMENTS;
41.16IMPLEMENTATION PLAN.
41.17    The Office of Higher Education must develop a plan for implementing interest
41.18rate exchanges, swaps, or other interest rate protection agreements for its student loan
41.19programs. The plan must be presented in a report to the committees of legislature
41.20responsible for higher education finance by January 15, 2008. The report must address
41.21potential contracting arrangements and options, benefits and risks associated with these
41.22agreements, and the potential impacts on the student loan program, its assets and its
41.23objectives.

41.24    Sec. 48. REPEALER.
41.25(a) Minnesota Statutes 2006, sections 135A.01; 135A.031, subdivisions 1, 2, 3, 4, 5,
41.26and 6; 135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; 136A.1702, are repealed.
41.27    (b) Minnesota Statutes 137.0245; and 137.0246, are repealed.


41.30    Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING AND ACCESS.
41.31    Subdivision 1. Short title. This section may be cited as the Textbook Disclosure,
41.32Pricing and Access Act.
41.33    Subd. 2. Purpose and intent. The purpose of this act is to ensure that every student
41.34in higher education is offered better and more timely access to affordable course materials
41.35by educating and informing faculty, students, administrators, institutions, bookstores, and
42.1publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the
42.2policy of the state of Minnesota that all involved parties must work together to identify
42.3ways to decrease the cost of course materials for students while protecting the academic
42.4freedom of faculty members to provide high quality course materials for students.
42.5    Subd. 3. Definitions. For the purposes of this section, the following definitions
42.6have the meaning given.
42.7    (1) "Bundled" means any course material packaged together to be sold for one price.
42.8    (2) "Bookstore" means a store that is affiliated with a postsecondary institution or
42.9has a contract with a postsecondary institution to sell course materials to students enrolled
42.10at the postsecondary institution.
42.11    (3) "Course material" means textbooks as defined in section 297A.67, subdivision
42.1213, custom course materials, and instructional materials as defined in section 297A.67,
42.13subdivision 13a, sold to students by a bookstore in a bundled or unbundled form.
42.14    (4) "Custom course materials" means any combination of textbooks, course
42.15materials, or any part thereof that has been customized, produced, and sold by a distributor
42.16or publisher specifically for a specific course, program, or field of study.
42.17    (5) "Distributor" means an independent contractor, including its employees or agents,
42.18that is in the business of selling, distributing, advertising, marketing, or maintaining an
42.19inventory of course materials for a postsecondary institution or bookstore.
42.20    (6) "Postsecondary institution" means a Minnesota institution defined under section
42.21136A.101, subdivision 4.
42.22    (7) "Publisher" means a publishing house, firm or business, including its employees
42.23or agents, acting with authority of the publisher that publishes, sells, markets, or maintains
42.24an inventory of course materials to a postsecondary institution or bookstore.
42.25    Subd. 4. Publisher disclosures. (a) Beginning January 1, 2008, a publisher or
42.26distributor must post on its Web site or include in a catalog or disclose in writing to a
42.27faculty member or other individual at a postsecondary institution responsible for selecting
42.28course material within seven days of a request, at least the following:
42.29    (1) the title, edition, author, and International Standard Book Number (ISBN) of all
42.30course material and custom course materials, if applicable;
42.31    (2) the price for the course material;
42.32    (3) whether the required course material is bundled with optional material, whether
42.33it can be unbundled, and the price for each bundled and unbundled component;
42.34    (4) whether the material is available in an alternative format and the cost for the
42.35alternatively formatted material; and
43.1    (5) summary of revisions to requested course material for the previous edition or
43.2release for materials that have been in circulation for five years or less and a detailed
43.3breakdown of revisions must be made available in writing within seven days of the request.
43.4    (b) A publisher or distributor must make all bundled course materials available to
43.5bookstores or postsecondary institutions in an unbundled form or provide written or verbal
43.6notice within seven days of a request under this subdivision if the unbundled materials are
43.7not available.
43.8    (c) A publisher or distributor must post on its Web site, include in its marketing
43.9materials or disclose in writing when a request is made under this subdivision for the
43.10return policy for course material, including any penalties or conditions for returns.
43.11    (d) Disclosure under this section is not required for mass market and trade books that
43.12are not published, marketed or sold primarily for use in or by postsecondary institutions.
43.13    Subd. 5. Payment for course material. Each postsecondary institution must adopt
43.14policies that allow students to add the costs of course material purchased at a bookstore
43.15to existing waivers or payment plans for tuition and fees.
43.16    Subd. 6. Notice to purchase. (a) An instructor shall make reasonable efforts to
43.17notify a bookstore of the final order for required and recommended course material
43.18including, but not limited to, alternative formats, previous editions, or custom course
43.19materials at least30 days prior to the commencement of the term.
43.20    (b) The bookstore must notify students of the following information concerning the
43.21required and recommended course material at least 15 days prior to the commencement of
43.22the term for which the course material is required, including, but not limited to:
43.23    (1) the title, edition, author, and International Standard Book Number (ISBN) of
43.24the course material;
43.25    (2) the price for the course material;
43.26    (3) whether the required course material is bundled with optional material, whether
43.27it can be unbundled, and the price for each bundled and unbundled component; and
43.28    (4) whether the material is available in an alternative format and the cost for the
43.29alternatively formatted material.
43.30    Subd. 7. Educational strategies. (a) During the biennium ending June 30, 2009,
43.31the Minnesota Office of Higher Education shall work with postsecondary institutions
43.32to develop educational materials based upon the findings of the Minnesota Textbook
43.33Advisory Task Force recommendations and other relevant information, convene and
43.34sponsor meetings and workshops, and provide educational materials for faculty, students,
43.35administrators, institutions, bookstores, and publishers in order to educate all interested
44.1parties on strategies for reducing the costs of course materials for students attending
44.2postsecondary institutions.
44.3    (b) The Minnesota Office of Higher Education must develop and maintain a
44.4standardized request form for publisher disclosure under this section with all required
44.5information. The request form must be in an electronic format that can be downloaded
44.6from the office Web site.


44.9    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:
44.10136A.61 POLICY.
44.11    The legislature has found and hereby declares that the availability of legitimate
44.12courses and programs leading to academic degrees offered by responsible private not for
44.13profit and for profit institutions of postsecondary education and the existence of legitimate
44.14private colleges and universities are in the best interests of the people of this state. The
44.15legislature has found and declares that the state can provide assistance and protection
44.16for persons choosing private institutions and programs, by establishing policies and
44.17procedures to assure the authenticity and legitimacy of private postsecondary education
44.18institutions and programs. The legislature has also found and declares that this same
44.19policy applies to any private and public postsecondary educational institution located in
44.20another state or country which offers or makes available to a Minnesota resident any
44.21course, program or educational activity which does not require the leaving of the state
44.22for its completion.

44.23    Sec. 2. [136A.615] CITATION.
44.24    Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and
44.25Out-of-State Public Postsecondary Education Act."

44.26    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:
44.27    Subd. 3. School. "School" means:
44.28    (1) any individual, partnership, company, firm, society, trust, association,
44.29corporation, or any combination thereof, which (a) (i) is, owns, or operates a private,
44.30nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, for
44.31profit postsecondary education institution; (iii) provides a postsecondary instructional
44.32program or course leading to a degree whether or not for profit; (c) (iv) is, owns, or
44.33operates a private, postsecondary education institution which uses the term "college",
44.34"academy", "institute" or "university" in its name; or (d) operates for profit and provides
44.35programs or courses which are intended to allow an individual to fulfill in part or totally
45.1the requirements necessary to maintain a license to practice an occupation. School shall
45.2also mean
45.3    (2) any public postsecondary educational institution located in another state or
45.4country which offers or makes available to a Minnesota resident any course, program or
45.5educational activity which does not require the leaving of the state for its completion; or
45.6    (3) any individual, entity, or postsecondary institution located in another state
45.7that contracts with any school located within the state of Minnesota for the purpose of
45.8providing educational programs, training programs, or awarding postsecondary credits
45.9or continuing education credits to Minnesota residents that may be applied to a degree
45.10program.

45.11    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:
45.12136A.63 REGISTRATION.
45.13    All schools located within Minnesota and all schools located outside Minnesota
45.14which offer degree programs or courses within Minnesota shall register annually with
45.15the office.

45.16    Sec. 5. Minnesota Statutes 2006, section 136A.63, is amended to read:
45.17136A.63 REGISTRATION.
45.18    Subdivision 1. Annual registration. All schools located within Minnesota and all
45.19schools located outside Minnesota which offer programs or courses within Minnesota
45.20shall register annually with the office.
45.21    Subd. 2. Sale of an institution. Within 30 days of a change of ownership the school
45.22must submit a registration renewal application, all usual and ordinary information and
45.23materials for an initial registration, and applicable registration fees for a new institution.
45.24For purposes of this subdivision, "change of ownership" means a merger or consolidation
45.25with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of
45.26the assets of a school; the transfer of a controlling interest of at least 51 percent of the
45.27school's stock; or a change in the not-for-profit or for profit status of a school.

45.28    Sec. 6. Minnesota Statutes 2006, section 136A.64, is amended to read:
45.29136A.64 INFORMATION REQUIRED FOR REGISTRATION.
45.30    Subdivision 1. Schools to provide information. As a basis for registration, schools
45.31shall provide the office with such information as the office needs to determine the nature
45.32and activities of the school, including but not limited to, requirements for admission,
45.33enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty
45.34employed. The office shall have the authority to verify the accuracy of the information
46.1submitted to it by inspection or any other means it deems necessary. the following which
46.2shall be accompanied by an affidavit attesting to its accuracy and truthfulness:
46.3    (1) articles of incorporation, constitution, bylaws, or other operating documents;
46.4    (2) a duly adopted statement of the school's mission and goals;
46.5    (3) evidence of current school or program licenses granted by departments or
46.6agencies of any state;
46.7    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate
46.8past fiscal year including any management letters provided by the independent auditor
46.9or, if the school is a public institution outside Minnesota, an income statement for the
46.10immediate past fiscal year;
46.11    (5) all current promotional and recruitment materials and advertisements; and
46.12    (6) the current school catalog and, if not contained in the catalog:
46.13    (i) the members of the board of trustees or directors, if any;
46.14    (ii) the current institutional officers;
46.15    (iii) current full-time and part-time faculty with degrees held or applicable
46.16experience;
46.17    (iv) a description of all school facilities;
46.18    (v) a description of all current course offerings;
46.19    (vi) all requirements for satisfactory completion of courses, programs, and degrees;
46.20    (vii) the school's policy about freedom or limitation of expression and inquiry;
46.21    (viii) a current schedule of fees, charges for tuition, required supplies, student
46.22activities, housing, and all other standard charges;
46.23    (ix) the school's policy about refunds and adjustments;
46.24    (x) the school's policy about granting credit for prior education, training, and
46.25experience; and
46.26    (xi) the school's policies about student admission, evaluation, suspension, and
46.27dismissal.
46.28    Subd. 2. Financial records. The office shall not disclose financial records or
46.29accreditation reports provided to it by a school pursuant to this section except for the
46.30purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its
46.31decision to approve or not to approve the granting of degrees or the use of a name by the
46.32school. Section 15.17, subdivision 4, shall not apply to such records.
46.33    Subd. 3. Additional information. If the office is unable to determine the nature
46.34and activities of a school on the basis of the information in subdivision 1, the office shall
46.35notify the school of additional information needed.
47.1    Subd. 4. Verification of information. The office may verify the accuracy of
47.2submitted information by inspection, visitation, or any other means it considers necessary.
47.3    Subd. 5. Public information. All information submitted to the office is public
47.4information except financial and accreditation records and information. The office may
47.5disclose financial records or information to defend its decision to approve or disapprove
47.6granting of degrees or the use of a name or its decisions to revoke the approval at a hearing
47.7under chapter 14 or other legal proceedings.
47.8    Subd. 6. Late registration penalty. Applications for renewal for any registration
47.9received after the deadline date specified in the renewal materials provided by the office
47.10are subject to a late fee equal to 20 percent of the annual registration renewal fee.
47.11    Subd. 7. Out-of-state expenses. A school shall reimburse the office for actual costs
47.12associated with a site evaluation visit outside Minnesota if the visit is necessary under
47.13section 136A.64, subdivision 1 or 3.

47.14    Sec. 7. [136A.645] SCHOOL CLOSURE.
47.15    (a) When a school decides to cease postsecondary education operations, or if its
47.16registration is refused, revoked, or suspended it must cooperate with the office in assisting
47.17students to find alternative means to complete their studies with a minimum of disruption,
47.18and inform the office of the following:
47.19    (1) the planned date for termination of postsecondary education operations;
47.20    (2) the planned date for the transfer of the student records;
47.21    (3) confirmation of the name and address of the organization to receive and hold
47.22the student records; and
47.23    (4) the official at the organization receiving the student records who is designated to
47.24provide official copies of records or transcripts upon request.
47.25    (b) Upon notice from a school of its intention to cease operations, or if a school's
47.26registration is revoked, refused, or suspended, the office shall notify the school of the date
47.27on which it must cease the enrollment of students and all postsecondary educational
47.28operations.

47.29    Sec. 8. [136A.646] ADDITIONAL SECURITY.
47.30    In the event any registered institution is notified by the United States Department
47.31of Education that it has fallen below minimum financial standards and that its continued
47.32participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
47.33Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
47.34Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
47.35institution shall provide a surety bond conditioned upon the faithful performance of all
48.1contracts and agreements with students in a sum equal to the "letter of credit" required by
48.2the United States Department of Education in the Letter of Credit Alternative, but in no
48.3event shall such bond be less than $10,000 and not more than $250,000.

48.4    Sec. 9. Minnesota Statutes 2006, section 136A.65, is amended to read:
48.5136A.65 APPROVAL OF DEGREES AND NAME.
48.6    Subdivision 1. Prohibition. No school subject to registration shall grant a degree
48.7unless such degree is and its underlying curriculum are approved by the office, nor
48.8shall any school subject to registration use the name "college," "academy," "institute" or
48.9"university" in its name without approval by the office.
48.10    Subd. 1a. Accreditation; requirement. A school must not be registered or
48.11authorized to offer any degree at any level unless the school is accredited by an agency
48.12recognized by the United States Department of Education for purposes of eligibility to
48.13participate in Title IV federal financial aid programs. Any registered school undergoing
48.14institutional accreditation shall inform the office of site visits by the accrediting agency
48.15and provide office staff the opportunity to attend the visits, including any exit interviews.
48.16The institution must provide the office with a copy of the final report upon receipt.
48.17    Subd. 2. Procedures. The office shall establish procedures for approval, including
48.18notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not
48.19granted. If a hearing is requested, no disapproval shall take effect until after such hearing.
48.20    Subd. 3. Application. A school subject to registration shall be granted approval to
48.21use the term "college," "academy," "institute" or "university" in its name whether or not it
48.22offers a program leading to a degree, if it was organized, operating and using such term in
48.23its name on or before August 1, 1975, and if it meets the other policies and standards for
48.24approval established by the office.
48.25    Subd. 4. Criteria for approval. (a) A school applying to be registered and to have
48.26its degree or degrees and name approved must substantially meet the following criteria:
48.27    (1) the school has an organizational framework with administrative and teaching
48.28personnel to provide the educational programs offered;
48.29    (2) the school has financial resources sufficient to meet the school's financial
48.30obligations, including refunding tuition and other charges consistent with its stated policy
48.31if the institution is dissolved, or if claims for refunds are made, to provide service to the
48.32students as promised, and to provide educational programs leading to degrees as offered;
48.33    (3) the school operates in conformity with generally accepted budgeting and
48.34accounting procedures, such as the standards adopted by the National Association of
49.1College and University Business Officers, located at 1 Dupont Circle, Washington, D.C.,
49.220036;
49.3    (4) the school provides an educational program leading to the degree it offers;
49.4    (5) the school provides appropriate and accessible library, laboratory, and other
49.5physical facilities to support the educational program offered;
49.6    (6) the school has a policy on freedom or limitation of expression and inquiry for
49.7faculty and students which is published or available on request;
49.8    (7) the school uses only publications and advertisements which are truthful and do
49.9not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the
49.10school, its personnel, programs, services, or occupational opportunities for its graduates
49.11for promotion and student recruitment;
49.12    (8) the school's compensated recruiting agents who are operating in Minnesota
49.13identify themselves as agents of the school when talking to or corresponding with students
49.14and prospective students; and
49.15    (9) the school provides information to students and prospective students concerning:
49.16    (i) comprehensive and accurate policies relating to student admission, evaluation,
49.17suspension, and dismissal;
49.18    (ii) clear and accurate policies relating to granting credit for prior education, training,
49.19and experience and for courses offered by the school;
49.20    (iii) current schedules of fees, charges for tuition, required supplies, student
49.21activities, housing, and all other standard charges;
49.22    (iv) policies regarding refunds and adjustments for withdrawal or modification
49.23of enrollment status; and
49.24    (v) procedures and standards used for selection of recipients and the terms of
49.25payment and repayment for any financial aid program.
49.26    (b) An application for degree approval must also include:
49.27    (i) title of degree and formal recognition awarded;
49.28    (ii) location where such degree will be offered;
49.29    (iii) proposed implementation date of the degree;
49.30    (iv) admissions requirements for the degree;
49.31    (v) length of the degree;
49.32    (vi) projected enrollment for a period of five years;
49.33    (vii) the curriculum required for the degree, including course syllabi or outlines;
49.34    (viii) statement of academic and administrative mechanisms planned for monitoring
49.35the quality of the proposed degree;
49.36    (ix) statement of satisfaction of professional licensure criteria, if applicable;
50.1    (x) documentation of the availability of clinical, internship, externship, or practicum
50.2sites, if applicable; and
50.3    (xi) statement of how the degree fulfills the institution's mission and goals,
50.4complements existing degrees, and contributes to the school's viability.
50.5    Subd. 5. Requirements for degree approval. For each degree a school offers to a
50.6student, where the student does not leave Minnesota for the major portion of the program
50.7or course leading to the degree, the school must have:
50.8    (1) qualified teaching personnel to provide the educational programs for each degree
50.9for which approval is sought;
50.10    (2) appropriate educational programs leading to each degree for which approval
50.11is sought;
50.12    (3) appropriate and accessible library, laboratory, and other physical facilities to
50.13support the educational program for each degree for which approval is sought; and
50.14    (4) a rationale showing that degree programs are consistent with the school's mission
50.15and goals.
50.16    Subd. 6. Name. A school may use the term "academy" or "institute" in its name
50.17without meeting any additional requirements. A school may use the term "college" in its
50.18name if it offers at least one program leading to an associate degree. A school may use
50.19the term "university" in its name if it offers at least one program leading to a master's
50.20or doctorate degree.
50.21    Subd. 7. Grandfathered names. Names used before August 1, 2007, by a school,
50.22organized, operating, and using the term "academy," "institute," "college," or "university"
50.23in its name on or before August 1, 2007, may continue using such term whether or not it
50.24offers a program leading to a degree.
50.25    Subd. 8. Conditional approval. The office may grant conditional approval for a
50.26degree or use of a term in its name for a period of less than one year if doing so would be
50.27in the best interests of currently enrolled students or prospective students.
50.28    Subd. 9. Disapproval of registration appeal. If a school's degree or use of a term
50.29in its name is disapproved by the office, the school may request a hearing under chapter
50.3014. The request must be in writing and made to the office within 30 days of the date
50.31the school is notified of the disapproval.
50.32    (a) The office may refuse to renew, revoke, or suspend registration, approval of
50.33a school's degree, or use of a regulated term in its name by giving written notice and
50.34reasons to the school. The school may request a hearing under chapter 14. If a hearing is
50.35requested, no revocation or suspension shall take effect until after the hearing.
51.1    (b) Reasons for revocation or suspension of registration or approval may be for one
51.2or more of the following reasons:
51.3    (1) violating the provisions of sections 136A.615 to 136A.71;
51.4    (2) providing false, misleading, or incomplete information to the office;
51.5    (3) presenting information about the school which is false, fraudulent, misleading,
51.6deceptive, or inaccurate in a material respect to prospective students; or
51.7    (4) refusing to allow reasonable inspection or to supply reasonable information after
51.8a written request by the office has been received.

51.9    Sec. 10. Minnesota Statutes 2006, section 136A.653, is amended to read:
51.10136A.653 EXEMPTIONS.
51.11    Subdivision 1. Exemption. A school that is subject to licensing by the office under
51.12chapter 141, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
51.13The determination of the office as to whether a particular school is subject to regulation
51.14under chapter 141 is final for the purposes of this exemption.
51.15    Subd. 2. Educational program; nonprofit organizations. Educational programs
51.16which are sponsored by a bona fide and nonprofit trade, labor, business, professional
51.17or fraternal organization, which programs are conducted solely for that organization's
51.18membership or for the members of the particular industries or professions served by that
51.19organization, and which are not available to the public on a fee basis, are exempted from
51.20the provisions of sections 136A.61 136A.615 to 136A.71.
51.21    Subd. 3. Educational program; business firms. Educational programs which are
51.22sponsored by a business firm for the training of its employees or the employees of other
51.23business firms with which it has contracted to provide educational services at no cost to the
51.24employees are exempted from the provisions of sections 136A.61 136A.615 to 136A.71.
51.25    Subd. 4. Voluntary submission. Any school or program exempted from the
51.26provisions of sections 136A.61 136A.615 to 136A.71 by the provisions of this section
51.27may voluntarily submit to the provisions of those sections.

51.28    Sec. 11. Minnesota Statutes 2006, section 136A.657, is amended to read:
51.29136A.657 EXEMPTION; RELIGIOUS SCHOOLS.
51.30    Subdivision 1. Exemption. Any school or any department or branch of a school (a)
51.31which is substantially owned, operated or supported by a bona fide church or religious
51.32organization; (b) whose programs are primarily designed for, aimed at and attended by
51.33persons who sincerely hold or seek to learn the particular religious faith or beliefs of that
51.34church or religious organization; and (c) whose programs are primarily intended to prepare
51.35its students to become ministers of, to enter into some other vocation closely related to, or
52.1to conduct their lives in consonance with, the particular faith of that church or religious
52.2organization, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
52.3    Subd. 2. Limitation. This exemption shall not extend to any school or to any
52.4department or branch of a school which through advertisements or solicitations represents
52.5to any students or prospective students that the school, its aims, goals, missions or
52.6purposes or its programs are different from those described in subdivision 1. This
52.7exemption shall not extend to any school which represents to any student or prospective
52.8student that the major purpose of its programs is to prepare the student for a vocation not
52.9closely related to that particular religious faith, or to provide the student with a general
52.10educational program recognized by other schools or the broader educational, business or
52.11social community as being substantially equivalent to the educational programs offered
52.12by schools or departments or branches of schools which are not exempt from sections
52.13136A.61 136A.615 to 136A.71, and rules adopted pursuant thereto.
52.14    Subd. 3. Scope. Nothing in sections 136A.61 136A.615 to 136A.71, or the rules
52.15adopted pursuant thereto, shall be interpreted as permitting the office to determine the
52.16truth or falsity of any particular set of religious beliefs.
52.17    Subd. 4. Statement required; religious nature. Any degree awarded upon
52.18completion of a religiously exempt program shall include descriptive language to make
52.19the religious nature of the award clear.

52.20    Sec. 12. Minnesota Statutes 2006, section 136A.66, is amended to read:
52.21136A.66 LIST.
52.22    The office shall maintain a list of schools registered institutions authorized to grant
52.23degrees and schools authorized to use the name "college," "academy," "institute" or
52.24"university," and shall make such list available to the public.

52.25    Sec. 13. Minnesota Statutes 2006, section 136A.67, is amended to read:
52.26136A.67 UNAUTHORIZED REPRESENTATIONS.
52.27    No school and none of its officials or employees shall advertise or represent in any
52.28manner that such school is approved or accredited by the office or state of Minnesota
52.29except that any A school which is duly registered with the office, or any of its officials or
52.30employees, may represent in advertising and shall disclose in catalogues, applications,
52.31and enrollment materials that the school is registered with the office. by prominently
52.32displaying the following statement: "(Name of school) is registered as a private institution
52.33with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71.
52.34Registration is not an endorsement of the institution. Credits earned at the institution
52.35may not transfer to all other institutions."

53.1    Sec. 14. [136A.675] RISK ANALYSIS.
53.2    The office shall develop a set of financial and programmatic evaluation metrics to
53.3aid in the detection of the failure or potential failure of a school to meet the standards
53.4established under sections 136A.61 to 136A.71. These metrics shall include indicators
53.5of financial stability, changes in the senior management or the financial aid and senior
53.6administrative staff of an institution, changes in enrollment, changes in program offerings,
53.7and changes in faculty staffing patterns. The development of financial standards shall use
53.8industry standards as benchmarks. The development of the nonfinancial standards shall
53.9include a measure of trends and dramatic changes in trends or practice. The agency must
53.10specify the metrics and standards for each area and provide a copy to each registered
53.11institution and post them on the agency Web site. The agency shall use regularly reported
53.12data submitted to the federal government or other regulatory or accreditation agencies
53.13wherever possible. The agency may require more frequent data reporting by an institution
53.14to ascertain whether the standards are being met.

53.15    Sec. 15. Minnesota Statutes 2006, section 136A.68, is amended to read:
53.16136A.68 RECORDS.
53.17    After August 1, 1975, all schools located in this state must maintain permanent
53.18records of all students enrolled therein at any time. The office may require schools to
53.19provide a plan acceptable to the office for preserving all such records for at least ten years.
53.20The office may require that such plan include the filing of a continuous surety bond or a
53.21deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving
53.22records after such school ceases to exist. A registered school shall maintain a permanent
53.23record for each student for 50 years from the last date of the student's attendance. A
53.24registered school offering distance instruction to a student located in Minnesota shall
53.25maintain a permanent record for each Minnesota student for 50 years from the last date of
53.26the student's attendance. Records include a student's academic transcript, documents, and
53.27files containing student data about academic credits earned, courses completed, grades
53.28awarded, degrees awarded, and periods of attendance. To preserve permanent records, a
53.29school shall submit a plan that meets the following requirements:
53.30    (1) at least one copy of the records must be held in a secure, fireproof depository
53.31or duplicate records must be maintained off site in a secure location and in a manner
53.32approved by the office;
53.33    (2) an appropriate official must be designated to provide a student with copies of
53.34records or a transcript upon request;
53.35    (3) an alternative method approved by the office of complying with clauses (1) and
53.36(2) must be established if the school ceases to exist; and
54.1    (4) if the school has no binding agreement approved by the office for preserving
54.2student records, a continuous surety bond must be filed with the office in an amount not to
54.3exceed $20,000. The bond shall run to the state of Minnesota.

54.4    Sec. 16. Minnesota Statutes 2006, section 136A.69, is amended to read:
54.5136A.69 FEES.
54.6    Subdivision 1. Registration fees. The office shall collect reasonable registration
54.7fees that are sufficient to recover, but do not exceed, its costs of administering the
54.8registration program. The office shall charge $1,100 for initial registration fees and $950
54.9for annual renewal fees.
54.10    Subd. 2. Degree level addition fee. The office processing fee for adding a degree
54.11level to an existing program is $2,000 per program.
54.12    Subd. 3. Program addition fee. The office processing fee for adding a program
54.13that represents a significant departure in the objectives, content, or method of delivery of
54.14programs that are currently offered by the school is $500 per program.
54.15    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
54.16or outside consultant is necessary to review or evaluate any new or revised program, the
54.17office shall be reimbursed for the expenses incurred related to the review as follows:
54.18    (1) $300 for the team base fee or for a paper review conducted by a consultant if the
54.19office determines that a fact-finding visit is not required;
54.20    (2) $300 for each day or part thereof on site per team member; and
54.21    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
54.22by team members.
54.23    Subd. 5. Modification fee. The fee for modification of any existing program is
54.24$100 and is due if there is:
54.25    (1) an increase or decrease of 25 percent or more from the original date of program
54.26approval, in clock hours, credit hours, or calendar length of an existing program;
54.27    (2) a change in academic measurement from clock hours to credit hours or vice
54.28versa; or
54.29    (3) an addition or alteration of courses that represent a 25 percent change or more in
54.30the objectives, content, or methods of delivery.

54.31    Sec. 17. [136A.705] PENALTY.
54.32    The director may assess fines for violations of a provision of sections 136A.615 to
54.33136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71
54.34shall be a separate violation and fines shall not exceed $500 per day per violation.
55.1Amounts received under this section must be deposited in the special revenue fund and are
55.2appropriated for the purposes in sections 136A.615 to 136A.71.

55.3    Sec. 18. Minnesota Statutes 2006, section 136A.71, is amended to read:
55.4136A.71 INJUNCTION.
55.5    Upon application of the attorney general the district courts shall have jurisdiction to
55.6enjoin any violations of sections 136A.61 136A.615 to 136A.71.

55.7    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:
55.8    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or
55.9"office" means the Minnesota Office of Higher Education.

55.10    Sec. 20. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:
55.11    Subd. 5. School. "School" means any person, within or outside the state, who
55.12maintains, advertises, administers, solicits for, or conducts any program for profit at
55.13any less than an associate degree level other than baccalaureate or graduate programs,
55.14and is not specifically exempted by sections 141.21 to and is not registered as a private
55.15institution under sections 136A.615 to 136A.71 and is not specifically exempted by
55.16section 141.35 or 141.37.

55.17    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:
55.18    Subdivision 1. Required. A school must not maintain, advertise, solicit for,
55.19administer, or conduct any program in Minnesota without first obtaining a license from
55.20the office.

55.21    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:
55.22    Subd. 5. Bond. (a) No license shall be issued to any school which maintains,
55.23conducts, solicits for, or advertises within the state of Minnesota any program, unless the
55.24applicant files with the office a continuous corporate surety bond written by a company
55.25authorized to do business in Minnesota conditioned upon the faithful performance of all
55.26contracts and agreements with students made by the applicant.
55.27    (b) The amount of the surety bond shall be ten percent of the preceding year's gross
55.28income from student tuition, fees, and other required institutional charges, but in no event
55.29less than $10,000 nor greater than $250,000, except that a school may deposit a greater
55.30amount at its own discretion. A school in each annual application for licensure must
55.31compute the amount of the surety bond and verify that the amount of the surety bond
55.32complies with this subdivision, unless the school maintains a surety bond equal to at least
55.33$250,000. A school that operates at two or more locations may combine gross income
55.34from student tuition, fees, and other required institutional charges for all locations for the
55.35purpose of determining the annual surety bond requirement. The gross tuition and fees
56.1used to determine the amount of the surety bond required for a school having a license for
56.2the sole purpose of recruiting students in Minnesota shall be only that paid to the school
56.3by the students recruited from Minnesota.
56.4    (c) The bond shall run to the state of Minnesota and to any person who may have a
56.5cause of action against the applicant arising at any time after the bond is filed and before it
56.6is canceled for breach of any contract or agreement made by the applicant with any student.
56.7The aggregate liability of the surety for all breaches of the conditions of the bond shall not
56.8exceed the principal sum deposited by the school under paragraph (b). The surety of any
56.9bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved
56.10of liability for any breach of condition occurring after the effective date of cancellation.
56.11    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a
56.12sum equal to the amount of the required surety bond in cash, or securities as may be
56.13legally purchased by savings banks or for trust funds in an aggregate market value equal
56.14to the amount of the required surety bond.
56.15    (e) Failure of a school to post and maintain the required surety bond or deposit under
56.16paragraph (d) may shall result in denial, suspension, or revocation of the school's license.

56.17    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:
56.18    Subd. 7. Minimum standards. A license shall be issued if the office first
56.19determines:
56.20    (1) that the applicant has a sound financial condition with sufficient resources
56.21available to:
56.22    (i) meet the school's financial obligations;
56.23    (ii) refund all tuition and other charges, within a reasonable period of time, in the
56.24event of dissolution of the school or in the event of any justifiable claims for refund against
56.25the school by the student body;
56.26    (iii) provide adequate service to its students and prospective students; and
56.27    (iv) maintain and support the school;
56.28    (2) that the applicant has satisfactory facilities with sufficient tools and equipment
56.29and the necessary number of work stations to prepare adequately the students currently
56.30enrolled, and those proposed to be enrolled;
56.31    (3) that the applicant employs a sufficient number of qualified teaching personnel to
56.32provide the educational programs contemplated;
56.33    (4) that the school has an organizational framework with administrative and
56.34instructional personnel to provide the programs and services it intends to offer;
56.35    (5) that the premises and conditions under which the students work and study are
56.36sanitary, healthful, and safe, according to modern standards;
57.1    (6) that the quality and content of each occupational course or program of study
57.2provides education and adequate preparation to enrolled students for entry level positions
57.3in the occupation for which prepared;
57.4    (7) that the living quarters which are owned, maintained, recommended, or approved
57.5by the applicant for students are sanitary and safe;
57.6    (8) that the contract or enrollment agreement used by the school complies with
57.7the provisions in section 141.265;
57.8    (9) that contracts and agreements do not contain a wage assignment provision or a
57.9confession of judgment clause; and
57.10    (10) that there has been no adjudication of fraud or misrepresentation in any
57.11criminal, civil, or administrative proceeding in any jurisdiction against the school or its
57.12owner, officers, agents, or sponsoring organization.

57.13    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:
57.14    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to
57.15a school, the school shall furnish to the office a catalog, brochure, or electronic display
57.16including:
57.17    (1) identifying data, such as volume number and date of publication;
57.18    (2) name and address of the school and its governing body and officials;
57.19    (3) a calendar of the school showing legal holidays, beginning and ending dates of
57.20each course quarter, term, or semester, and other important dates;
57.21    (4) the school policy and regulations on enrollment including dates and specific
57.22entrance requirements for each program;
57.23    (5) the school policy and regulations about leave, absences, class cuts, make-up
57.24work, tardiness, and interruptions for unsatisfactory attendance;
57.25    (6) the school policy and regulations about standards of progress for the student
57.26including the grading system of the school, the minimum grades considered satisfactory,
57.27conditions for interruption for unsatisfactory grades or progress, a description of any
57.28probationary period allowed by the school, and conditions of reentrance for those
57.29dismissed for unsatisfactory progress;
57.30    (7) the school policy and regulations about student conduct and conditions for
57.31dismissal for unsatisfactory conduct;
57.32    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
57.33activities, laboratory fees, service charges, rentals, deposits, and all other charges;
57.34    (9) the school policy and regulations, including an explanation of section 141.271,
57.35about refunding tuition, fees, and other charges if the student does not enter the program,
57.36withdraws from the program, or the program is discontinued;
58.1    (10) a description of the available facilities and equipment;
58.2    (11) a course outline syllabus for each course offered showing course objectives,
58.3subjects or units in the course, type of work or skill to be learned, and approximate time,
58.4hours, or credits to be spent on each subject or unit;
58.5    (12) the school policy and regulations about granting credit for previous education
58.6and preparation;
58.7    (13) a notice to students relating to the transferability of any credits earned at the
58.8school to other institutions;
58.9    (14) a procedure for investigating and resolving student complaints; and
58.10    (14) (15) the name and address of the Minnesota Office of Higher Education.
58.11    A school that is exclusively a distance education school is exempt from clauses
58.12(3) and (5).

58.13    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:
58.14    Subd. 10. Placement records. (a) Before a license is issued reissued to a school
58.15that offers, advertises or implies a placement service, the school shall file with the office
58.16for the past year and thereafter at reasonable intervals determined by the office, a certified
58.17copy of the school's placement record, containing a list of graduates, a description of their
58.18jobs, names of their employers, and other information as the office may prescribe.
58.19    (b) Each school that offers a placement service shall furnish to each prospective
58.20student, upon request, prior to enrollment, written information concerning the percentage
58.21of the previous year's graduates who were placed in the occupation for which prepared or
58.22in related employment.

58.23    Sec. 26. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:
58.24    Subd. 12. Permanent records. A school licensed under this chapter and located
58.25in Minnesota shall maintain a permanent record for each student for 50 years from the
58.26last date of the student's attendance. A school licensed under this chapter and offering
58.27distance instruction to a student located in Minnesota shall maintain a permanent record
58.28for each Minnesota student for 50 years from the last date of the student's attendance.
58.29Records include school transcripts, documents, and files containing student data about
58.30academic credits earned, courses completed, grades awarded, degrees awarded, and
58.31periods of attendance. To preserve permanent records, a school shall submit a plan that
58.32meets the following requirements:
58.33    (1) at least one copy of the records must be held in a secure, fireproof depository;
58.34    (2) an appropriate official must be designated to provide a student with copies of
58.35records or a transcript upon request;
59.1    (3) an alternative method, approved by the office, of complying with clauses (1) and
59.2(2) must be established if the school ceases to exist; and
59.3    (4) a continuous surety bond must be filed with the office in an amount not to exceed
59.4$20,000 if the school has no binding agreement approved by the office, for preserving
59.5student records or a trust must be arranged if the school ceases to exist. The bond shall run
59.6to the state of Minnesota.

59.7    Sec. 27. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:
59.8    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a
59.9renewal licensure application is:
59.10    (1) for a category A school, as determined by the office, the fee is $865 if the school
59.11offers one program or $1,150 if the school offers two or more programs; and
59.12    (2) for a category B or C school, as determined by the office, the fee is $430 if the
59.13school offers one program or $575 if the school offers two or more programs.
59.14    (b) If a license renewal application is not received by the office by the close of
59.15business at least 60 days before the expiration of the current license, a late fee of $100
59.16per business day, not to exceed $3,000, shall be assessed.

59.17    Sec. 28. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:
59.18    Subd. 2. Contract information. A contract or enrollment agreement used by a
59.19school must include at least the following:
59.20    (1) the name and address of the school, clearly stated;
59.21    (2) a clear and conspicuous disclosure that the agreement is a legally binding
59.22instrument upon written acceptance of the student by the school unless canceled under
59.23section 141.271;
59.24    (3) the school's cancellation and refund policy that shall be clearly and conspicuously
59.25entitled "Buyer's Right to Cancel";
59.26    (4) a clear statement of total cost of the program including tuition and all other
59.27charges;
59.28    (5) the name and description of the program, including the number of hours or
59.29credits of classroom instruction, or distance instruction, that shall be included; and
59.30    (6) a clear and conspicuous explanation of the form and means of notice the student
59.31should use in the event the student elects to cancel the contract or sale, the effective
59.32date of cancellation, and the name and address of the seller to which the notice should
59.33be sent or delivered.
59.34The contract or enrollment agreement must not include a wage assignment provision or a
59.35confession of judgment clause.

60.1    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:
60.2    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place
60.3on the date the letter of cancellation is postmarked or, in the cases where the notice is hand
60.4carried, it shall occur on the date the notice is delivered to the school. If a student has not
60.5attended classes class for a period of 21 consecutive days without contacting the school to
60.6indicate an intent to continue in school or otherwise making arrangements concerning the
60.7absence, the student is considered to have withdrawn from school for all purposes as of
60.8the student's last documented date of attendance.

60.9    Sec. 30. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:
60.10    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any
60.11promissory instrument received as payment of tuition or other charge prior to completion
60.12of 50 percent of the program., except that prior to that time, instruments may be transferred
60.13by assignment to purchasers who shall be subject to all defenses available against the
60.14school named as payee.

60.15    Sec. 31. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:
60.16    Subdivision 1. Not to advertise state approval Disclosure required. Schools,
60.17agents of schools, and solicitors may not advertise or represent in writing or orally that
60.18such school is approved or accredited by the state of Minnesota, except that any A
60.19school, agent, or solicitor may advertise represent in advertisements and shall disclose
60.20in catalogues, applications, and enrollment materials that the school and solicitor have
60.21been is duly licensed by the state using by prominently displaying the following language
60.22statement:
60.23"(Name of school) is licensed as a private career school with the Minnesota Office of
60.24Higher Education. Licensure is not an endorsement of the institution. Credits earned at the
60.25institution may not transfer to all other institutions. The educational programs may not
60.26meet the needs of every student or employer."

60.27    Sec. 32. Minnesota Statutes 2006, section 141.32, is amended to read:
60.28141.32 PENALTY.
60.29    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure
60.30to comply with this chapter shall be a separate violation. The office shall adopt rules
60.31establishing a list of civil penalties and the fine associated with each violation. Fines for
60.32violations shall not exceed $500 per day per violation. The director may assess fines for
60.33violations of a provision of this chapter. Each day's failure to comply with a provision
60.34of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed
61.1$500 per day per violation. Amounts received under this section must be deposited in the
61.2special revenue fund and are appropriated for the purposes of this chapter.

61.3    Sec. 33. Minnesota Statutes 2006, section 141.35, is amended to read:
61.4141.35 EXEMPTIONS.
61.5    Sections 141.21 to 141.35 141.32 shall not apply to the following:
61.6    (1) public postsecondary institutions;
61.7    (2) private postsecondary institutions registered under sections 136A.61 136A.615
61.8to 136A.71 that are nonprofit, or that are for profit and registered under sections 136A.61
61.9to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate
61.10or postbaccalaureate programs;
61.11    (3) schools of nursing accredited by the state Board of Nursing or an equivalent
61.12public board of another state or foreign country;
61.13    (4) private schools complying with the requirements of section 120A.22, subdivision
61.144 ;
61.15    (5) courses taught to students in a valid apprenticeship program taught by or
61.16required by a trade union;
61.17    (6) schools exclusively engaged in training physically or mentally disabled persons
61.18for the state of Minnesota;
61.19    (7) schools licensed by boards authorized under Minnesota law to issue licenses;
61.20    (8) schools and educational programs, or training programs, contracted for by
61.21persons, firms, corporations, government agencies, or associations, for the training of their
61.22own employees, for which no fee is charged the employee;
61.23    (9) schools engaged exclusively in the teaching of purely avocational, recreational,
61.24or remedial subjects as determined by the office;
61.25    (10) driver training schools and instructors as defined in section 171.33, subdivisions
61.261 and 2 ;
61.27    (11) classes, courses, or programs conducted by a bona fide trade, professional, or
61.28fraternal organization, solely for that organization's membership;
61.29    (12) (11) programs in the fine arts provided by organizations exempt from taxation
61.30under section 290.05 and registered with the attorney general under chapter 309. For
61.31the purposes of this clause, "fine arts" means activities resulting in artistic creation or
61.32artistic performance of works of the imagination which are engaged in for the primary
61.33purpose of creative expression rather than commercial sale or employment. In making
61.34this determination the office may seek the advice and recommendation of the Minnesota
61.35Board of the Arts;
62.1    (13) (12) classes, courses, or programs intended to fulfill the continuing education
62.2requirements for licensure or certification in a profession, that have been approved by
62.3a legislatively or judicially established board or agency responsible for regulating the
62.4practice of the profession, and that are offered exclusively to an individual practicing
62.5the profession;
62.6    (14) (13) classes, courses, or programs intended to prepare students to sit for
62.7undergraduate, graduate, postgraduate, or occupational licensing and occupational
62.8entrance examinations;
62.9    (15) (14) classes, courses, or programs providing 16 or fewer clock hours of
62.10instruction that are not part of the curriculum for an occupation or entry level employment;
62.11    (16) (15) classes, courses, or programs providing instruction in personal
62.12development, modeling, or acting;
62.13    (17) (16) training or instructional programs, in which one instructor teaches an
62.14individual student, that are not part of the curriculum for an occupation or are not intended
62.15to prepare a person for entry level employment; and
62.16    (18) (17) schools with no physical presence in Minnesota, as determined by the
62.17office, engaged exclusively in offering distance instruction that are located in and
62.18regulated by other states or jurisdictions.

62.19    Sec. 34. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
62.20    Subdivision 1. Exemption. Any school or any department or branch of a school:
62.21    (1) which is substantially owned, operated, or supported by a bona fide church
62.22or religious organization;
62.23    (2) whose programs are primarily designed for, aimed at, and attended by persons
62.24who sincerely hold or seek to learn the particular religious faith or beliefs of that church or
62.25religious organization; and
62.26    (3) whose programs are primarily intended to prepare its students to become
62.27ministers of, to enter into some other vocation closely related to, or to conduct their lives
62.28in consonance with the particular faith of that church or religious organization,
62.29is exempt from the provisions of sections 141.21 to 141.32.
62.30    Subd. 2. Limitations. (a) An exemption shall not extend to any school, department
62.31or branch of a school, or program of a school which through advertisements or solicitations
62.32represents to any students or prospective students that the school, its aims, goals, missions,
62.33purposes, or programs are different from those described in subdivision 1.
62.34    (b) An exemption shall not extend to any school which represents to any student or
62.35prospective student that the major purpose of its programs is to:
63.1    (1) prepare the student for a vocation not closely related to that particular religious
63.2faith; or
63.3    (2) provide the student with a general educational program recognized by other
63.4schools or the broader educational, business, or social community as being substantially
63.5equivalent to the educational programs offered by schools or departments or branches of
63.6schools which are not religious in nature and are not exempt from chapter 141 and from
63.7rules adopted pursuant under this chapter.
63.8    Subd. 3. Scope. Nothing in this chapter or the rules adopted under it shall be
63.9interpreted as permitting the office to determine the truth or falsity of any particular set
63.10of religious beliefs.
63.11    Subd. 4. Descriptive language required. Any certificate, diploma, degree, or other
63.12formal recognition awarded upon completion of any religiously exempt program shall
63.13include such descriptive language as to make the religious nature of the award clear.

63.14    Sec. 35. EFFECTIVE DATE; TRANSITION PROCESS.
63.15    Changes in Minnesota Statutes, chapter 141 and sections 136A.615 to 136A.71,
63.16shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes,
63.17chapter 141, that qualify for private institution registration after July 1, 2007, shall apply
63.18for and complete the process for registration prior to the expiration of their current private
63.19career school license. Schools currently registered as private institutions pursuant to
63.20Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private
63.21career school license after August 1, 2007, shall apply for and complete the process for
63.22licensure prior to the expiration of the current registration, but in any event no later than
63.23December 31, 2007. The office is authorized to extend existing license or registration for a
63.24reasonable period of time to allow for the completion of the new processes when necessary.

63.27

Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.

63.28    The amounts shown in this section summarize direct appropriations, by fund, made
63.29in this article.

63.30			2008		2009		Total
63.31	General	$	93,386,000	$	58,695,000	$	152,081,000
63.32	Workforce Development		14,935,000		14,951,000		29,886,000
63.33	Remediation		700,000		700,000		1,400,000
63.34	Petroleum Tank Cleanup		1,084,000		1,084,000		2,168,000
63.35 63.36	State Government Special Revenue		1,877,000		1,925,000		3,802,000
64.1	Workers' Compensation		28,036,000		24,298,000		52,334,000
64.2	Total	$	140,018,000	$	101,653,000	$	241,671,000

64.3	Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

64.4    The sums shown in the columns marked "Appropriations" are appropriated to the
64.5agencies and for the purposes specified in this article. The appropriations are from the
64.6general fund, or another named fund, and are available for the fiscal years indicated
64.7for each purpose. The figures "2008" and "2009" used in this article mean that the
64.8appropriations listed under them are available for the fiscal year ending June 30, 2008, or
64.9June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
64.10year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
64.11year ending June 30, 2007, are effective the day following final enactment.

64.12				APPROPRIATIONS
64.13				Available for the Year
64.14				Ending June 30
64.15					2008		2009

64.16 64.17

Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

64.18

Subdivision 1.Total Appropriation

$

100,573,000

$

65,825,000

64.19	Appropriations by Fund
64.20		2008	2009
64.21	General	85,703,000	50,955,000
64.22	Remediation	700,000	700,000
64.23 64.24	Workforce Development	14,170,000	14,170,000

64.25The amounts that may be spent for each
64.26purpose are specified in the following
64.27subdivisions.

64.28 64.29

Subd. 2.Business and Community Development

48,679,000

14,183,000

64.30	Appropriations by Fund
64.31	General	47,979,000	13,483,000
64.32	Remediation	700,000	700,000

64.33(a)(1) $1,100,000 is for a grant under
64.34Minnesota Statutes, section 116J.421,
64.35to the Rural Policy and Development
64.36Center at St. Peter, Minnesota. The grant
65.1shall be used for research and policy
65.2analysis on emerging economic and social
65.3issues in rural Minnesota, to serve as a
65.4policy resource center for rural Minnesota
65.5communities, to encourage collaboration
65.6across higher education institutions, to
65.7provide interdisciplinary team approaches
65.8to research and problem-solving in rural
65.9communities, and to administer overall
65.10operations of the center.
65.11(2) The grant shall be provided upon the
65.12condition that each state-appropriated
65.13dollar be matched with a nonstate dollar.
65.14Acceptable matching funds are nonstate
65.15contributions that the center has received and
65.16have not been used to match previous state
65.17grants. Any funds not spent the first year are
65.18available the second year.
65.19(b) $200,000 each year is for a grant to
65.20WomenVenture for women's business
65.21development programs.
65.22(c) $500,000 the first year is for a grant to
65.23University Enterprise Laboratories (UEL)
65.24for its direct and indirect expenses to support
65.25efforts to encourage the growth of early-stage
65.26and emerging bioscience companies. UEL
65.27must provide a report by June 30 each year
65.28to the commissioner on the expenditures
65.29until the appropriation is expended. This is a
65.30onetime appropriation and is available until
65.31expended.
65.32(d) $2,000,000 the first year is for grants
65.33under Minnesota Statutes, section 116J.571,
65.34for the Redevelopment Grant Program. This
65.35is a onetime appropriation.
66.1(e) $100,000 each year to the Public
66.2Facilities Authority for the Small
66.3Community Wastewater Treatment Program
66.4under Minnesota Statutes, chapter 446A.
66.5(f) $510,000 the first year is for the Urban
66.6Initiative Program under Minnesota Statutes,
66.7chapter 116M, of which, $155,000 each year
66.8is for a grant to the Metropolitan Economic
66.9Development Association for continuing
66.10minority business development programs
66.11in the metropolitan area. This is a onetime
66.12appropriation.
66.13(g) $85,000 each year is for a grant to the
66.14Minnesota Inventors Congress, of which
66.15$10,000 must be used for youth inventors.
66.16(h) $151,000 the first year for a grant to the
66.17city of Faribault to design, construct, furnish,
66.18and equip renovations to accommodate
66.19handicapped accessibility at the Paradise
66.20Center for the Arts.
66.21(i) $3,000,000 the first year for loans
66.22authorized under Minnesota Statutes, section
66.23116J.417. This appropriation is available
66.24until expended.
66.25(j) $1,000,000 each year to Minnesota
66.26Technology, Inc. for the small business
66.27growth acceleration program established
66.28under Minnesota Statutes, section 116O.115.
66.29This is a onetime appropriation.
66.30(k) $350,000 the first year for a grant to
66.31the city of Northome for the construction
66.32of a new municipal building to replace the
66.33structures damaged by fire on July 22, 2006.
66.34This appropriation is available when the
66.35commissioner determines that a sufficient
67.1match is available from nonstate sources to
67.2complete the project.
67.3(l) $325,000 each year is for a technology
67.4and commercialization unit established under
67.5section .... This is a onetime appropriation.
67.6(m) $500,000 in the first year is for a
67.7grant to the city of Worthington for an
67.8agricultural-based bioscience training and
67.9testing center. Funds appropriated under this
67.10section must be used to provide a training
67.11and testing facility for incubator firms
67.12developing new agricultural processes and
67.13products. This is a onetime appropriation
67.14and is available until expended.
67.15(n) $2,200,000 in the first year is for a grant
67.16to BioBusiness Alliance of Minnesota for
67.17bioscience business development programs
67.18to promote and position the state as a global
67.19leader in bioscience business activities.
67.20These funds may be used for:
67.21(1) completion and periodic updating of
67.22a statewide bioscience business industry
67.23assessment of business technology
67.24enterprises and Minnesota's competitive
67.25position employing annual updates to federal
67.26industry classification data;
67.27(2) long-term strategic planning that includes
67.28projections of market changes resulting
67.29from developments in biotechnology and the
67.30development of 20-year goals, strategies and
67.31identified objectives for renewable energy,
67.32medical devices, biopharma, and biologics
67.33business development in Minnesota;
67.34(3) the design and construction of a
67.35Minnesota focused bioscience business
68.1model to test competing strategies and
68.2scenarios, evaluate options, and forecast
68.3outcomes; and
68.4(4) creation of a bioscience business
68.5resources network that includes development
68.6of a statewide bioscience business economic
68.7development framework to encourage
68.8bioscience business development and
68.9encourage spin-off activities, attract
68.10bioscience business location or expansion in
68.11Minnesota, and establish a local capability to
68.12support strategic system level planning for
68.13industry, government, and academia.
68.14This appropriation is available until June 30,
68.152009.
68.16(o) $325,000 is for a grant to the Walker
68.17Area Community Center, Inc., to construct,
68.18furnish, and equip the Walker Area
68.19Community Center. This appropriation is
68.20not available until the commissioner has
68.21determined that an amount sufficient to
68.22complete the project has been committed
68.23from nonstate sources.
68.24(p) $120,000 the first year is for a grant
68.25to the Pine Island Economic Development
68.26Authority for predesign to upgrade and
68.27extend utilities to serve Elk Run Bioscience
68.28Research Park and The Falls - Healthy
68.29Living By Nature, an integrated medicine
68.30facility. This is a onetime appropriation and
68.31is available until expended.
68.32(q) $300,000 the first year is for a grant
68.33to Thomson Township for infrastructure
68.34improvements for the industrial park. This is
68.35a onetime appropriation.
69.1(r) $75,000 the first year for a grant to
69.2Le Sueur County for the cost of cleaning
69.3debris from lakes in Le Sueur County,
69.4caused by the August 24, 2006, tornado in
69.5southern Le Sueur County. This is a onetime
69.6appropriation.
69.7(s) $1,500,000 the first year is for bioscience
69.8business development and commercialization
69.9grants. The commissioner shall designate an
69.10evaluation team to accept grant applications,
69.11review and evaluate grant proposals, and
69.12select up to five grant proposals to receive
69.13funding each year. The evaluation team
69.14shall be comprised of not more than 12
69.15members including: the commissioner or the
69.16commissioner's designee; representatives of
69.17bioscience businesses; public and private
69.18institutions of higher education; private
69.19investment companies; a nonprofit entity
69.20that qualifies as a 501(c)6 under the Internal
69.21Revenue Code and is a trade association
69.22representing the life sciences industry;
69.23and a bio business alliance that qualifies
69.24as a 501(c)3 under the Internal Revenue
69.25Code. The criteria used by the evaluation
69.26team in evaluating grant proposals must
69.27include, but is not limited to: the potential
69.28to create and sustain jobs within the state
69.29of Minnesota; the potential for long-term
69.30business activity, growth, and expansion
69.31in Minnesota; the level of technological
69.32maturity; the potential to attract private
69.33investment; and the availability and readiness
69.34of markets. The commissioner must report
69.35to the standing committees of the house
69.36of representatives and the senate having
70.1jurisdiction over bioscience and technology
70.2issues by February 1 each year on the
70.3number, type, and amounts of grants awarded
70.4and the activities of the grant recipients. This
70.5is a onetime appropriation and is available
70.6until expended.
70.7(t) $1,500,000 the first year is for the urban
70.8challenge grant program under Minnesota
70.9Statutes, section 116M.18, of which
70.10$1,000,000 is for a grant to the Neighborhood
70.11Development Center for assistance necessary
70.12to retain minority business enterprises
70.13at the Global Market. This is a onetime
70.14appropriation.
70.15(u) $375,000 each year is to develop and
70.16operate a bioscience business marketing
70.17program to market Minneota bioscience
70.18businesses and business opportunities
70.19to other states and other countries. The
70.20bioscience business marketing program must
70.21emphasize bioscience business location and
70.22expansion opportunities in communities
70.23outside of the seven-county metropolitan
70.24area as defined in Minnesota Statutes,
70.25section 473.121, subdivision 2, that have
70.26established collaborative plans among two
70.27or more municipal units for bioscience
70.28business activities, and that are within 15
70.29miles of a four-year, baccalaureate degree
70.30granting institution or a two-year technical
70.31or community college that offers bioscience
70.32curricula. The commissioner must report
70.33to the committees of the senate and house
70.34of representatives having jurisdiction
70.35over bioscience and technology issues by
70.36February 1 of each year on the expenditures
71.1of these funds and the promotional activities
71.2undertaken to market the Minnesota
71.3bioscience industry to persons outside of the
71.4state. This is a onetime appropriation and is
71.5available until expended.
71.6(v) $225,000 each year for the purposes
71.7of the nanotechnology development fund
71.8(NDF) established in section 11, for grants
71.9to promote increased use of advanced
71.10instrumentation for nanomaterials analysis,
71.11to be awarded on a one-to-one matching basis
71.12to qualifying Minnesota small businesses.
71.13This is a onetime appropriation.
71.14(w) $50,000 the first year for a contract
71.15with a public higher education institution
71.16in Minnesota jointly entered into with the
71.17Center for Rural Development to study the
71.18needs of the renewable energy economy for
71.19trained employees and the training required
71.20for those employees. The study must include
71.21extensive consultation and involvement of
71.22representatives of the renewable energy
71.23industry, environmental interests, labor, the
71.24University of Minnesota, and the Minnesota
71.25State Colleges and Universities. The
71.26commissioner shall report the results of the
71.27study to the chairs of the finance divisions
71.28of the legislature with jurisdiction over
71.29economic development, energy, and higher
71.30education by November 1, 2007. This is a
71.31onetime appropriation.
71.32(x) $25,000,000 is for the Minnesota
71.33minerals 21st century fund created in
71.34Minnesota Statutes, section 116J.423,
71.35to restore the money unallotted by the
72.1commissioner of finance in 2003 pursuant
72.2to Minnesota Statutes, section 16A.152.
72.3This appropriation may be used as provided
72.4in Minnesota Statutes, section 116J.423,
72.5subdivision 2. This appropriation is available
72.6until expended.
72.7(y) $900,000 each year is for a grant to the
72.8city of St. Paul to be used to pay debt service
72.9on bond obligations issued by the city of St.
72.10Paul in 1996 for the convention center.

72.11

Subd. 3.Workforce Development

48,896,000

48,622,000

72.12	Appropriations by Fund
72.13	General	34,726,000	34,452,000
72.14 72.15	Workforce Development	14,170,000	14,170,000

72.16(a) $6,785,000 each year is for the Minnesota
72.17job skills partnership program under
72.18Minnesota Statutes, sections 116L.01 to
72.19116L.17. If the appropriation for either
72.20year is insufficient, the appropriation for the
72.21other year is available. This appropriation is
72.22available until spent.
72.23(b) $305,000 each year is for a grant under
72.24Minnesota Statutes, section 116J.8747, to
72.25Twin Cities RISE! to provide training to
72.26hard-to-train individuals.
72.27(c) $1,125,000 each year is from
72.28the workforce development fund for
72.29Opportunities Industrialization Center
72.30programs.
72.31(d) $5,864,000 each year is from the general
72.32fund and $6,920,000 each year is from the
72.33workforce development fund for extended
72.34employment services for persons with severe
73.1disabilities or related conditions under
73.2Minnesota Statutes, section 268A.15.
73.3(e) $1,900,000 each year is for grants for
73.4programs that provide employment support
73.5services to persons with mental illness under
73.6Minnesota Statutes, sections 268A.13 and
73.7268A.14. Up to $77,000 each year may be
73.8used for administrative and salary expenses.
73.9(f) $2,190,000 each year is for grants under
73.10Minnesota Statutes, section 268A.11, for the
73.11eight centers for independent living. Money
73.12not expended the first year is available the
73.13second year.
73.14(g) $5,940,000 each year is for State Services
73.15for the Blind activities.
73.16(h) $150,000 each year is from the general
73.17fund and $175,000 each year is from the
73.18workforce development fund for grants under
73.19Minnesota Statutes, section 268A.03, to Rise,
73.20Inc. for the Minnesota Employment Center
73.21for People Who are Deaf or Hard-of-Hearing.
73.22Money not expended the first year is
73.23available the second year.
73.24(i) $9,021,000 each year is for the vocational
73.25rehabilitation program. At least $325,000
73.26each year must be used for interpreters for
73.27a regional transition program specializing
73.28in culturally appropriate transition
73.29services leading to employment for deaf,
73.30hard-of-hearing, and deaf-blind students.
73.31(j) $150,000 each year is for a grant to
73.32Advocating Change Together for training,
73.33technical assistance, and resource materials
73.34to persons with developmental and mental
73.35illness disabilities.
74.1(k) $250,000 each year for a grant to
74.2Lifetrack Resources for its immigrant/refugee
74.3collaborative programs, including those
74.4related to job-seeking skills and workplace
74.5orientation, intensive job development,
74.6functional work English, and on-site job
74.7coaching.
74.8(l) $1,075,000 each year from the workforce
74.9development fund is for the youthbuild
74.10program under Minnesota Statutes, sections
74.11116L.361 to 116L.366.
74.12(m) $1,350,000 each year is from the
74.13workforce development fund for grants
74.14to fund summer youth employment in
74.15Minneapolis. The grants shall be used to
74.16fund up to 500 jobs for youth each summer.
74.17Of this appropriation, $350,000 each year is
74.18for a grant to the learn-to-earn summer youth
74.19employment program. The commissioner
74.20shall establish criteria for awarding the
74.21grants. This appropriation is available in
74.22either year of the biennium and is available
74.23until spent.
74.24(n) $50,000 each year is for a grant
74.25to Northern Connections in Perham to
74.26implement and operate a pilot workforce
74.27program that provides one-stop supportive
74.28services to assist individuals as they transition
74.29into the workforce. This appropriation is
74.30available to the extent it is matched by $1 of
74.31nonstate money for each $1 of state money.
74.32(o) $100,000 each year is for a grant to
74.33Ramsey County Workforce Investment Board
74.34for the development of the building lives
74.35program. This is a onetime appropriation.
75.1(p) $300,000 each year is for a grant to the
75.2Hennepin-Carver Workforce Investment
75.3Board (WIB) to coordinate with the Partners
75.4for Progress Regional Skills Consortium
75.5to provide employment and training as
75.6demonstrated by the Twin Cities regional
75.7health care training partnership project. This
75.8is a onetime appropriation.
75.9(q) $160,000 the first year is for a grant
75.10to Workforce Development, Inc., for a
75.11pilot project to provide demand-driven
75.12employment and training services to
75.13welfare recipients and other economically
75.14disadvantaged populations in Mower,
75.15Freeborn, Dodge, and Steele Counties. This
75.16is a onetime appropriation.
75.17(r) $200,000 each year is for a grant to
75.18HIRED to operate its industry sector training
75.19initiatives, which provide employee training
75.20developed in collaboration with employers in
75.21specific, high-demand industries. This is a
75.22onetime appropriation.
75.23(s) $200,000 the first year is for a grant
75.24to a nonprofit organization. The nonprofit
75.25organization must work on behalf of all
75.26licensed vendors to coordinate their efforts
75.27to respond to solicitations or other requests
75.28from private and governmental units as
75.29defined in Minnesota Statutes, section
75.30471.59, subdivision 1, in order to increase
75.31employment opportunities for persons with
75.32disabilities.
75.33(t) $3,500,000 each year from the workforce
75.34development fund is for the Minnesota Youth
76.1Program under Minnesota Statutes, section
76.2116L.56 and 116L.561.
76.3(u) $500,000 each year from the workforce
76.4development fund is for a grant to the
76.5Minnesota Alliance of Boys and Girls
76.6Clubs to administer a statewide project
76.7of youth job skills development. This
76.8project, which may have career guidance
76.9components, including health and life skills,
76.10is to encourage, train, and assist youth in
76.11job-seeking skills, workplace orientation,
76.12and job site knowledge through coaching.
76.13This grant requires a 25 percent match from
76.14nonstate resources.
76.15(v) $350,000 in each year from the workforce
76.16development fund for a grant to Ramsey
76.17County for a summer youth employment
76.18program to place at-risk youth, ages 14 to 21,
76.19in subsidized summer employment.

76.20

Subd. 5.State-Funded Administration

2,998,000

3,020,000

76.21The first $1,450,000 deposited in each
76.22year of the biennium and in each year of
76.23subsequent bienniums into the contingent
76.24account created under Minnesota Statutes,
76.25section 268.196, subdivision 3, shall be
76.26transferred by June 30 of each fiscal year
76.27to the workforce development fund created
76.28under Minnesota Statutes, section 116L.20.
76.29Deposits in excess of the $1,450,000 shall be
76.30transferred by June 30 of each fiscal year to
76.31the general fund.

76.32 76.33

Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY

76.34

Subdivision 1.Total Appropriation

$

28,142,000

$

28,594,000

77.1	Appropriations by Fund
77.2		2008	2009
77.3	General	3,784,000	3,835,000
77.4 77.5	Workers' Compensation	21,716,000	22,053,000
77.6 77.7	Workforce Development	765,000	781,000
77.8 77.9	State Government Special Revenue	1,877,000	1,925,000

77.10The amounts that may be spent for each
77.11purpose are specified in the following
77.12subdivisions.

77.13

Subd. 2.Workers' Compensation

10,381,000

10,659,000

77.14This appropriation is from the workers'
77.15compensation fund.
77.16$200,000 each year is for grants to the
77.17Vinland Center for rehabilitation services.

77.18

Subd. 3.Safety Codes and Services

9,949,000

10,134,000

77.19This appropriation is from the workers'
77.20compensation fund.
77.21$5,292,000 the first year and $5388,000
77.22the second year is from the workers'
77.23compensation fund. $1,877,000 in the first
77.24year and $1,925,000 the second year is from
77.25the state government special revenue fund.
77.26$1,000,000 each year is from workers'
77.27compensation fund for patient safe handling
77.28grants under Minnesota Statutes, section
77.29182.6553.
77.30$100,000 each year is for the operation of
77.31the meatpacking industry workers rights
77.32ombudsman under Minnesota Statutes,
77.33section 179.87.

77.34

Subd. 4.Labor Standards/Apprenticeship

1,769,000

1,795,000

78.1	Appropriations by Fund
78.2	General	1,004,000	1,014,000
78.3 78.4	Workforce Development	765,000	781,000

78.5The appropriation from the workforce
78.6development fund is for the apprenticeship
78.7program under Minnesota Statutes, chapter
78.8178, and includes $100,000 each year for
78.9labor education and advancement program
78.10grants.
78.11$300,000 each year from the general fund is
78.12for prevailing wage enforcement.

78.13

Subd. 5.General Support

6,043,000

6,006,000

78.14This appropriation is from the workers'
78.15compensation fund.

78.16 78.17

Sec. 5. BUREAU OF MEDIATION SERVICES

78.18

Subdivision 1.Total Appropriation

$

1,850,000

$

1,877,000

78.19The amounts that may be spent for each
78.20purpose are specified in the following
78.21subdivisions.

78.22

Subd. 2.Mediation Services

1,700,000

1,727,000

78.23 78.24

Subd. 3.Labor Management Cooperation Grants

150,000

150,000

78.25$150,000 each year is for grants to area labor
78.26management committees. Grants may be
78.27awarded for a 12-month period beginning
78.28July 1 each year. Any unencumbered balance
78.29remaining at the end of the first year does not
78.30cancel but is available for the second year.

78.31 78.32

Sec. 6. WORKERS' COMPENSATION COURT OF APPEALS

$

1,663,000

$

1,710,000

78.33This appropriation is from the workers'
78.34compensation fund.

79.1

Sec. 7. BOARD OF ACCOUNTANCY

$

493,000

$

499,000

79.2 79.3 79.4 79.5

Sec. 8. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN

$

795,000

$

805,000

79.6

Sec. 9. BOARD OF BARBER EXAMINERS

$

711,000

$

724,000

79.7 79.8

Sec. 10. MINNESOTA BOXING COMMISSION

$

50,000

$

-0-

79.9To transition the commission to being a
79.10self-funded entity.

79.11    Sec. 11. NANOTECHNOLOGY DEVELOPMENT FUND.
79.12    Subdivision 1. Nanotechnology development fund created. The nanotechnology
79.13development fund (NDF) is created in the state treasury. Money in the fund is appropriated
79.14to the commissioner of employment and economic development for the purposes of this
79.15section.
79.16    Subd. 2. Program established; purpose. The nanotechnology development
79.17fund program is established to develop a collaborative economic development initiative
79.18between the state of Minnesota, the private sector, and multiple academic institutions
79.19to promote by small businesses an increased use of advanced nanoinstrumentation for
79.20characterization, fabrication, and other related processes; provide research consulting
79.21by knowledgeable specialists; and provide student internship opportunities to increase
79.22nanotechnology experience by working with small, medium, or large Minnesota
79.23companies. The NDF program shall be administered by the Department of Employment
79.24and Economic Development and is not a state agency.
79.25    Subd. 3. Definition; qualifying Minnesota small business. "Qualifying Minnesota
79.26small business" means:
79.27    (1) a Minnesota small business corporation, sole proprietorship, or partnership that
79.28has fewer than 50 employees; or
79.29    (2) a Minnesota business corporation, sole proprietorship, or partnership that:
79.30    (i) has 51 to 100 employees; and
79.31    (ii) demonstrates current financial adversity or risk or a major prospect of aiding
79.32the business's long-term outlook by significant use of nanotechnology in the business's
79.33offerings.
80.1    Subd. 4. Use of fund; grants. The commissioner shall extend onetime matching
80.2grants from the NDF to qualifying Minnesota small businesses located throughout the
80.3state to:
80.4    (1) add nanotechnology applications to products that are being developed by
80.5Minnesota small businesses to enhance distinctiveness;
80.6    (2) promote the depth, breadth, and value of technologies being developed by
80.7Minnesota businesses with the aid of nanotechnology;
80.8    (3) encourage more frequent use of nanoinstrumentation to speed businesses' product
80.9time-to-market, with higher incidence of distinct product characteristics;
80.10    (4) provide Minnesota small businesses with broader access to experienced research
80.11consultants; and
80.12    (5) increase the number of researchers experienced in working with
80.13nanoinstrumentation.
80.14    Subd. 5. Grant application and award procedure. (a) The commissioner may
80.15give priority to applicants:
80.16    (1) whose intellectual property would benefit from utilization of nanoinstrumentation
80.17not possessed in-house;
80.18    (2) who are currently utilizing nanoinstrumentation either at the University of
80.19Minnesota or a private sector location on a leased, hourly basis; and
80.20    (3) who wish to increase their access to experienced research consultants.
80.21    (b) The commissioner shall decide whether to award a grant to an eligible applicant
80.22based on:
80.23    (1) the applicant's planned frequency of usage of nanoinstrumentation for
80.24characterization, fabrication, and other related processes; and
80.25    (2) the applicant's demonstration of rental of nanoinstrumentation, in the form
80.26of a signed affidavit from a certified facility to confirm the one-to-one private sector
80.27investment has been met.
80.28    (c) A grant made under this section must:
80.29    (1) include verification of matching rental fees or internship stipends paid by the
80.30grantee; and
80.31    (2) be for a total amount paid to each grantee of not less than $500 nor more than
80.32$20,000 within the biennium.
80.33    Subd. 6. Administration. The commissioner of employment and economic
80.34development must develop and maintain a record-keeping system that specifies how
80.35funds from the NDF are applied for and distributed. Businesses receiving grants
80.36from the NDF must provide contact information, the date and time of the use of the
81.1nanoinstrumentation, proof of their matching contribution to meet the rental costs or
81.2provide an internship's stipend, and a general statement of the expected outcome from
81.3the use of the nanoinstrumentation, to the extent documentation can be made without
81.4divulging proprietary information.
81.5    Subd. 7. Gifts and donations. Gifts and donations, including land or interests
81.6in land, may be made to NDF. Noncash gifts and donations must be disposed of for
81.7cash as soon as the commissioner of employment and economic development can
81.8prudently maximize the value of the gift or donation. All funds must be credited to the
81.9nanotechnology development fund. All interest earned by the fund must be credited to
81.10the NDF.
81.11    Subd. 8. Report to legislature. By June 30 of each odd-numbered year, the
81.12commissioner of employment and economic development must submit a report to the
81.13legislature with statistics about the use of the NDF.


81.16    Section 1. [116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT
81.17INVESTMENT FUND.
81.18    Subdivision 1. Eligible organization. For the purposes of this section, "eligible
81.19organization" means an organization established pursuant to section 116J.415 which
81.20provides business financing to greater Minnesota businesses.
81.21    Subd. 2. Investment fund establishment. The commissioner shall establish an
81.22investment fund from which fund investments can be made in eligible organizations. The
81.23funds repaid by the eligible organizations are to be returned to the fund for subsequent
81.24reinvestment in eligible organizations.
81.25    Subd. 3. Authorized investments. The commissioner is authorized to make
81.26investments in eligible organizations. The commissioner shall invest funds in the form of
81.27loans to eligible organizations for the purpose of providing capital to new and expanding
81.28businesses in the form of debt or equity, or both.
81.29    Subd. 4. Investment authorized. The commissioner may make investments in
81.30eligible organizations under the following terms:
81.31    (1) the organization seeking an investment of funds must guarantee repayment of not
81.32less than 100 percent of the funds invested in the eligible organization;
81.33    (2) the investments are to be made in the form of a loan to the eligible organization
81.34for a term of ten years, at an interest rate of one percent;
82.1    (3) during the ten-year term of the loan, the eligible organization shall make annual
82.2interest-only payments;
82.3    (4) at the end of the ten-year term, the eligible organization is required to make a
82.4payment in the entire principal amount of the initial loan;
82.5    (5) the state investment by the commissioner in any eligible organization may not
82.6exceed $2,000,000;
82.7    (6) the full amount of state investment will be advanced to the approved eligible
82.8organization upon execution of a formal investment agreement, specifying the terms of the
82.9loan, as well as reporting and other requirements outlined in subdivision 5;
82.10    (7) the eligible organization must maintain the funds in accounts that allow the funds
82.11to be readily available for business investments;
82.12    (8) the eligible organization must make business investments totaling the entire
82.13amount of funds loaned by the state within three years of the execution of the investment
82.14agreement and subsequent transmittal of the funds; and
82.15    (9) an eligible organization that receives an investment under this section shall
82.16report annually, in a format prescribed by the commissioner, the nature and amount of
82.17the business investments made, including, for each financing transaction involving funds
82.18received pursuant to this section, all forms and amounts of financing provided by the
82.19eligible organization from sources other than the investment fund established pursuant to
82.20this section, along with the number of jobs created and private sector investment leveraged.
82.21    Subd. 5. Requirements for state investments. All investments are subject to an
82.22investment agreement which must include:
82.23    (1) a description of the eligible organization, including business finance experience,
82.24qualifications, and investment history;
82.25    (2) a description of the uses of investment proceeds by the eligible organization;
82.26    (3) an explanation of the investment objectives;
82.27    (4) a description of accounting and reporting standards to be used by the eligible
82.28organization; and
82.29    (5) a copy of the most recent audited financial statements of the eligible organization.

82.30    Sec. 2. Minnesota Statutes 2006, section 116J.551, subdivision 1, is amended to read:
82.31    Subdivision 1. Grant account. A contaminated site cleanup and development
82.32grant account is created in the general fund. Money in the account may be used, as
82.33appropriated by law, to make grants as provided in section 116J.554 and to pay for the
82.34commissioner's costs in reviewing applications and making grants. Notwithstanding
82.35section 16A.28, money appropriated to the account for this program from any source is
82.36available for four years until spent.

83.1    Sec. 3. Minnesota Statutes 2006, section 116J.554, subdivision 2, is amended to read:
83.2    Subd. 2. Qualifying sites. A site qualifies for a grant under this section, if the
83.3following criteria are met:
83.4    (1) the site is not scheduled for funding during the current or next fiscal year under
83.5the Comprehensive Environmental Response, Compensation, and Liability Act, United
83.6States Code, title 42, section 9601, et seq. or under the Environmental Response, and
83.7Liability Act under sections 115B.01 to 115B.20;
83.8    (2) the appraised value of the site after adjusting for the effect on the value of the
83.9presence or possible presence of contaminants using accepted appraisal methodology, or
83.10the current market value of the site as issued under section 273.121, separately taking into
83.11account the effect of the contaminants on the market value, (i) is less than 75 percent of
83.12the estimated project costs for the site or (ii) is less than or equal to the estimated cleanup
83.13costs for the site and the cleanup costs equal or exceed $3 per square foot for the site; and
83.14    (3) (2) if the proposed cleanup is completed, it is expected that the site will be
83.15improved with buildings or other improvements and these improvements will provide a
83.16substantial increase in the property tax base within a reasonable period of time or the site
83.17will be used for an important publicly owned or tax-exempt facility.

83.18    Sec. 4. Minnesota Statutes 2006, section 116J.555, subdivision 1, is amended to read:
83.19    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
83.20will exceed the available appropriations and the agency will be able to provide grants to
83.21only some of the applicant development authorities.
83.22    (b) If applications for grants for qualified sites exceed the available appropriations,
83.23the agency shall make grants for sites that, in the commissioner's judgment, provide
83.24the highest return in public benefits for the public costs incurred and that meet all the
83.25requirements provided by law. In making this judgment, the commissioner shall consider
83.26the following factors:
83.27    (1) the recommendations or ranking of projects by the commissioner of the Pollution
83.28Control Agency regarding the potential threat to public health and the environment that
83.29would be reduced or eliminated by completion of each of the response action plans;
83.30    (2) the potential increase in the property tax base of the local taxing jurisdictions,
83.31considered relative to the fiscal needs of the jurisdictions, that will result from
83.32developments that will occur because of completion of each of the response action plans;
83.33    (3) the social value to the community of the cleanup and redevelopment of the site,
83.34including the importance of development of the proposed public facilities on each of
83.35the sites;
84.1    (4) the probability that each site will be cleaned up without use of government
84.2money in the reasonably foreseeable future by considering but not limited to the current
84.3market value of the site versus the cleanup cost;
84.4    (5) the amount of cleanup costs for each site; and
84.5    (6) the amount of the commitment of municipal or other local resources to pay for
84.6the cleanup costs.
84.7    The factors are not listed in a rank order of priority; rather the commissioner may
84.8weigh each factor, depending upon the facts and circumstances, as the commissioner
84.9considers appropriate. The commissioner may consider other factors that affect the net
84.10return of public benefits for completion of the response action plan. The commissioner,
84.11notwithstanding the listing of priorities and the goal of maximizing the return of public
84.12benefits, shall make grants that distribute available money to sites both within and outside
84.13of the metropolitan area. The commissioner shall provide a written statement of the
84.14supporting reasons for each grant. Unless sufficient applications are not received for
84.15qualifying sites outside of the metropolitan area, at least 25 percent of the money provided
84.16as grants must be made for sites located outside of the metropolitan area.

84.17    Sec. 5. Minnesota Statutes 2006, section 116J.575, subdivision 1, is amended to read:
84.18    Subdivision 1. Commissioner discretion. The commissioner may make a grant
84.19for up to 50 percent of the eligible costs of a project. The determination of whether
84.20to make a grant for a site is within the discretion of the commissioner, subject to this
84.21section and sections 116J.571 to 116J.574 and available unencumbered money in the
84.22redevelopment account. For grants made in fiscal years 2008 and 2009, at least seventy
84.23five percent of the available grant funds must be used for grants in greater Minnesota. For
84.24grants made in fiscal year 2010 and later, at least 50 percent of the available grant funds
84.25must be used for grants in greater Minnesota. If the commissioner determines that the
84.26applications for grants for projects in greater Minnesota are less than the amount of grant
84.27funds available, the commissioner may make grants for projects anywhere in Minnesota.
84.28The commissioner's decisions and application of the priorities under this section are not
84.29subject to judicial review, except for abuse of discretion.

84.30    Sec. 6. Minnesota Statutes 2006, section 116J.575, subdivision 1a, is amended to read:
84.31    Subd. 1a. Priorities. (a) If applications for grants exceed the available
84.32appropriations, grants shall be made for sites that, in the commissioner's judgment, provide
84.33the highest return in public benefits for the public costs incurred. "Public benefits" include
84.34job creation, bioscience development, environmental benefits to the state and region,
84.35efficient use of public transportation, efficient use of existing infrastructure, provision of
84.36affordable housing, multiuse development that constitutes community rebuilding rather
85.1than single-use development, crime reduction, blight reduction, community stabilization,
85.2and property tax base maintenance or improvement. In making this judgment, the
85.3commissioner shall give priority to redevelopment projects with one or more of the
85.4following characteristics:
85.5    (1) the need for redevelopment in conjunction with contamination remediation needs;
85.6    (2) the redevelopment project meets current tax increment financing requirements
85.7for a redevelopment district and tax increments will contribute to the project;
85.8    (3) the redevelopment potential within the municipality;
85.9    (4) proximity to public transit if located in the metropolitan area; and
85.10    (5) redevelopment costs related to expansion of a bioscience business in Minnesota;
85.11and
85.12    (5) (6) multijurisdictional projects that take into account the need for affordable
85.13housing, transportation, and environmental impact.
85.14    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
85.15commissioner may weigh each factor, depending upon the facts and circumstances, as
85.16the commissioner considers appropriate. The commissioner may consider other factors
85.17that affect the net return of public benefits for completion of the redevelopment plan. The
85.18commissioner, notwithstanding the listing of priorities and the goal of maximizing the
85.19return of public benefits, shall make grants that distribute available money to sites both
85.20within and outside of the metropolitan area. Unless sufficient applications are not received
85.21for qualifying sites outside of the metropolitan area, at least 25 percent of the money
85.22provided as grants must be made for sites located outside of the metropolitan area.

85.23    Sec. 7. Minnesota Statutes 2006, section 116J.966, subdivision 1, is amended to read:
85.24    Subdivision 1. Generally. (a) The commissioner shall promote, develop, and
85.25facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in
85.26addition to the powers granted by section 116J.035, the commissioner may:
85.27    (1) locate, develop, and promote international markets for Minnesota products
85.28and services;
85.29    (2) arrange and lead trade missions to countries with promising international markets
85.30for Minnesota goods, technology, services, and agricultural products;
85.31    (3) promote Minnesota products and services at domestic and international trade
85.32shows;
85.33    (4) organize, promote, and present domestic and international trade shows featuring
85.34Minnesota products and services;
85.35    (5) host trade delegations and assist foreign traders in contacting appropriate
85.36Minnesota businesses and investments;
86.1    (6) develop contacts with Minnesota businesses and gather and provide information
86.2to assist them in locating and communicating with international trading or joint venture
86.3counterparts;
86.4    (7) provide information, education, and counseling services to Minnesota businesses
86.5regarding the economic, commercial, legal, and cultural contexts of international trade;
86.6    (8) provide Minnesota businesses with international trade leads and information
86.7about the availability and sources of services relating to international trade, such as
86.8export financing, licensing, freight forwarding, international advertising, translation, and
86.9custom brokering;
86.10    (9) locate, attract, and promote foreign direct investment and business development
86.11in Minnesota to enhance employment opportunities in Minnesota;
86.12    (10) provide foreign businesses and investors desiring to locate facilities in
86.13Minnesota information regarding sources of governmental, legal, real estate, financial, and
86.14business services;
86.15    (11) enter into contracts or other agreements with private persons and public entities,
86.16including agreements to establish and maintain offices and other types of representation in
86.17foreign countries, to carry out the purposes of promoting international trade and attracting
86.18investment from foreign countries to Minnesota and to carry out this section, without
86.19regard to section 16C.06; and
86.20    (12) market trade-related materials to businesses and organizations, and the proceeds
86.21of which must be placed in a special revolving account and are appropriated to the
86.22commissioner to prepare and distribute trade-related materials.
86.23    (b) The programs and activities of the commissioner of employment and economic
86.24development and the Minnesota Trade Division may not duplicate programs and activities
86.25of the commissioner of agriculture.
86.26    (c) The commissioner shall notify the chairs of the senate Finance and house Ways
86.27and Means Committees of each agreement under this subdivision to establish and maintain
86.28an office or other type of representation in a foreign country.
86.29    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing
86.30assistance to official visits by foreign government representatives and shall serve as liaison
86.31to the foreign diplomatic corps in Minnesota.

86.32    Sec. 8. Minnesota Statutes 2006, section 116L.01, is amended by adding a subdivision
86.33to read:
86.34    Subd. 4. Workforce development intermediaries. "Workforce development
86.35intermediaries" means public, private, or nonprofit entities that provide employment
86.36services to low-income individuals and have a demonstrated track record bringing together
87.1employers and workers, private and public funding streams, and other stakeholders to
87.2implement pathways to career advancement for low-income individuals. Entities may
87.3include, but are not limited to, nonprofit organizations, educational institutions, or the
87.4administrative entity of a local workforce service area.

87.5    Sec. 9. Minnesota Statutes 2006, section 116L.04, subdivision 1a, is amended to read:
87.6    Subd. 1a. Pathways program. The pathways program may provide grants-in-aid
87.7for developing programs which assist in the transition of persons from welfare to work and
87.8assist individuals at or below 200 percent of the federal poverty guidelines. The program
87.9is to be operated by the board. The board shall consult and coordinate with program
87.10administrators at the Department of Employment and Economic Development to design
87.11and provide services for temporary assistance for needy families recipients.
87.12    Pathways grants-in-aid may be awarded to educational or other nonprofit training
87.13institutions or to workforce development intermediaries for education and training
87.14programs and services supporting education and training programs that serve eligible
87.15recipients.
87.16    Preference shall be given to projects that:
87.17    (1) provide employment with benefits paid to employees;
87.18    (2) provide employment where there are defined career paths for trainees;
87.19    (3) pilot the development of an educational pathway that can be used on a continuing
87.20basis for transitioning persons from welfare to work; and
87.21    (4) demonstrate the active participation of Department of Employment and
87.22Economic Development workforce centers, Minnesota State College and University
87.23institutions and other educational institutions, and local welfare agencies.
87.24    Pathways projects must demonstrate the active involvement and financial
87.25commitment of private business. Pathways projects must be matched with cash or in-kind
87.26contributions on at least a one-to-one one-half-to-one ratio by participating private
87.27business.
87.28    A single grant to any one institution shall not exceed $400,000. A portion of a grant
87.29may be used for preemployment training.

87.30    Sec. 10. Minnesota Statutes 2006, section 116L.17, subdivision 1, is amended to read:
87.31    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
87.32have the meanings given them in this subdivision.
87.33    (b) "Commissioner" means the commissioner of employment and economic
87.34development.
87.35    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the
87.36time employment ceased or was working in the state at the time employment ceased and:
88.1    (1) has been permanently separated or has received a notice of permanent separation
88.2from public or private sector employment and is eligible for or has exhausted entitlement
88.3to unemployment benefits, and is unlikely to return to the previous industry or occupation;
88.4    (2) has been long-term unemployed and has limited opportunities for employment
88.5or reemployment in the same or a similar occupation in the area in which the individual
88.6resides, including older individuals who may have substantial barriers to employment by
88.7reason of age;
88.8    (3) has been terminated or has received a notice of termination of employment as a
88.9result of a plant closing or a substantial layoff at a plant, facility, or enterprise;
88.10    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
88.11result of general economic conditions in the community in which the individual resides or
88.12because of natural disasters; or
88.13    (4) (5) is a displaced homemaker. A "displaced homemaker" is an individual who
88.14has spent a substantial number of years in the home providing homemaking service and
88.15(i) has been dependent upon the financial support of another; and now due to divorce,
88.16separation, death, or disability of that person, must find employment to self support; or (ii)
88.17derived the substantial share of support from public assistance on account of dependents
88.18in the home and no longer receives such support.
88.19    To be eligible under this clause, the support must have ceased while the worker
88.20resided in Minnesota.
88.21    (d) "Eligible organization" means a state or local government unit, nonprofit
88.22organization, community action agency, business organization or association, or labor
88.23organization.
88.24    (e) "Plant closing" means the announced or actual permanent shutdown of a single
88.25site of employment, or one or more facilities or operating units within a single site of
88.26employment.
88.27    (f) "Substantial layoff" means a permanent reduction in the workforce, which is
88.28not a result of a plant closing, and which results in an employment loss at a single site
88.29of employment during any 30-day period for at least 50 employees excluding those
88.30employees that work less than 20 hours per week.

88.31    Sec. 11. Minnesota Statutes 2006, section 116L.20, subdivision 1, is amended to read:
88.32    Subdivision 1. Determination and collection of special assessment. (a) In addition
88.33to amounts due from an employer under the Minnesota unemployment insurance program,
88.34each employer, except an employer making reimbursements is liable for a special
88.35assessment levied at the rate of .10 percent per year for calendar years 2006 and 2007 on
88.36all taxable wages, as defined in section 268.035, subdivision 24. Beginning January 1,
89.12008, the special assessment shall be levied at a rate of .085 percent per year on all taxable
89.2wages. The assessment shall become due and be paid by each employer on the same
89.3schedule and in the same manner as other amounts due from an employer under section
89.4268.051, subdivision 1 .
89.5    (b) The special assessment levied under this section shall be subject to the same
89.6requirements and collection procedures as any amounts due from an employer under the
89.7Minnesota unemployment insurance program.

89.8    Sec. 12. Minnesota Statutes 2006, section 116M.18, subdivision 6a, is amended to read:
89.9    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
89.10corporation with which it has entered into an agreement under subdivision 1. These
89.11loans must be used to support a new or expanding business. This support may include
89.12such forms of financing as the sale of goods to the business on installment or deferred
89.13payments, lease purchase agreements, or royalty investments in the business. The
89.14interest rate charged by a nonprofit corporation for a loan under this subdivision must
89.15not exceed the Wall Street Journal primate rate plus four percent. For a loan under this
89.16subdivision, the nonprofit corporation may charge a loan origination fee equal to or less
89.17than one percent of the loan value. The nonprofit corporation may retain the amount of
89.18the origination fee. The nonprofit corporation must provide at least an equal match to the
89.19loan received by the board. The maximum loan available to the nonprofit corporation
89.20under this subdivision is $50,000. Loans made to the nonprofit corporation under this
89.21subdivision may be made without interest. Repayments made by the nonprofit corporation
89.22must be deposited in the revolving fund created for urban initiative grants.

89.23    Sec. 13. [116O.115] SMALL BUSINESS GROWTH ACCELERATION
89.24PROGRAM.
89.25    Subdivision 1. Establishment; purpose. The small business growth acceleration
89.26program is established. The purpose of the program is to (1) help qualified companies
89.27implement technology and business improvements; and (2) bridge the gap between
89.28standard market pricing for technology and business improvements and what qualified
89.29companies can afford to pay.
89.30    Subd. 2. Qualified company. A company is qualified to receive assistance under the
89.31growth acceleration program if it is a manufacturing company or a manufacturing-related
89.32service company that employs 100 or fewer full-time equivalent employees.
89.33    Subd. 3. Applications for assistance. A company seeking assistance under the
89.34growth acceleration program must file an application according to the requirements of
89.35the corporation. A company's application for growth acceleration program assistance
90.1must include documentation of the company's overall plan for technology and business
90.2improvement and prioritize the components of the overall plan. The application must also
90.3document the company's need for growth acceleration program funds in order to carry
90.4forward the highest priority components of the plan.
90.5    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish procedures
90.6for determining which applicants for assistance under the growth acceleration program
90.7will receive program funding. Funding shall be awarded only to accelerate a qualified
90.8company's adoption of needed technology or business improvements when the corporation
90.9concludes that it is unlikely the improvements could be accomplished in any other way.
90.10    (b) The maximum amount of funds awarded to a qualified company under the
90.11growth acceleration program for a particular project must not exceed 50 percent of the
90.12total cost of a project and must not under any circumstances exceed $25,000 during a
90.13calendar year. The corporation shall not award to a qualified company growth acceleration
90.14program funds in excess of $50,000 per year.
90.15    (c) Any funds awarded to a qualified company under the growth acceleration
90.16program must be used for business services and products that will enhance the operation
90.17of the company. These business services and products must come either directly from
90.18the corporation or from a network of expert providers identified and approved by the
90.19corporation. No company receiving growth acceleration program funds may use the funds
90.20for refinancing, overhead costs, new construction, renovation, equipment, or computer
90.21hardware.
90.22    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
90.23documented according to requirements of the corporation.
90.24    Subd. 5. Service agreements. The corporation shall enter a written service
90.25agreement with each company awarded funds under the growth acceleration program.
90.26Each service agreement shall clearly articulate the company's need for service, state the
90.27cost of the service, identify who will provide the service, and define the scope of the
90.28service that will be provided. The service agreement must also include an estimate of the
90.29financial impact of the service on the company and require the company to report the actual
90.30financial impact of the service to the corporation 24 months after the service is provided.
90.31    Subd. 6. Reporting. The corporation shall report annually to the legislative
90.32committees with fiscal jurisdiction over the department of economic development:
90.33    (1) the funds awarded under the growth acceleration program during the past 12
90.34months;
91.1    (2) the estimated financial impact of the funds awarded to each company receiving
91.2service under the program; and
91.3    (3) the actual financial impact of funds awarded during the past 24 months.

91.4    Sec. 14. [177.45] PRIVATE PARTY CIVIL ACTIONS.
91.5    Subdivision 1. Civil action; damages. A person aggrieved by a violation of sections
91.6177.43, 177.435, or 177.44 may bring a civil action seeking redress directly to district
91.7court. A contractor, subcontractor, or agent who is found to have violated the above
91.8sections shall be liable to the aggrieved party for compensatory damages in the amount of
91.9any unpaid wages and benefits and for an additional equal amount as liquidated damages,
91.10in addition to other appropriate relief including but not limited to injunctive relief. An
91.11action to recover the liability prescribed in the preceding sentence may be maintained
91.12against any contractor, subcontractor, or agent by any one or more employees for and in
91.13behalf of himself or themselves and other employees similarly situated. An agreement
91.14between the employee and employer to work for less than the applicable wage is not
91.15a defense to the action.
91.16    Subd. 2. District court jurisdiction. An action brought under subdivision 1 may
91.17be filed in the district court of the county wherein a violation is alleged to have been
91.18committed, where the contractor, subcontractor, or agent resides or has a principal place
91.19of business, or any other court of competent jurisdiction.
91.20    Subd. 3. Attorney fees and costs. In an action brought under subdivision 1, the
91.21court shall order a contractor, subcontractor, or agent who is found to have committed
91.22a violation to pay to the aggrieved party reasonable costs, disbursements, witness fees,
91.23and attorney fees.

91.24    Sec. 15. [179.86] PACKINGHOUSE WORKERS BILL OF RIGHTS.
91.25    Subdivision 1. Definitions. For the purposes of this section and section 179.87:
91.26    (1) "employer" means any person or business entity having 25 or more employees
91.27in the meatpacking industry; and
91.28    (2) "meatpacking industry" means business operations in which slaughtering,
91.29butchering, meat canning, meat packing, meat manufacturing, poultry canning, poultry
91.30packing, poultry manufacturing, pet food manufacturing, processing of meatpacking
91.31products, or rendering is carried on. Meatpacking products include livestock and poultry
91.32products.
91.33    Subd. 2. Right to adequate facilities. An employer must provide its employees:
91.34    (1) adequate and working restroom facilities;
91.35    (2) adequate room for meal and rest breaks;
92.1    (3) adequate locker facilities; and
92.2    (4) adequate time for necessary restroom and meal breaks as required under chapter
92.3177; United States Code, title 29, chapter 15; and United States Code, title 42, chapter
92.4126, or a valid collective bargaining agreement.
92.5    Subd. 3. Right to adequate equipment and training. An employer must furnish its
92.6employees with equipment and training that is adequate to perform the job task assigned.
92.7An employer must make ongoing skill development and training opportunities, including
92.8supervisory training, available to employees.
92.9    Subd. 4. Information provided to employee by employer. (a) An employer must
92.10provide an explanation in an employee's native language of the employee's rights and
92.11duties as an employee either person to person or through written materials as required
92.12by state or federal law, or a valid collective bargaining agreement that, at a minimum,
92.13includes:
92.14    (1) a complete description of the salary and benefits plans as they relate to the
92.15employee as required under chapter 181;
92.16    (2) a job description for the employee's position as required under chapter 181;
92.17    (3) a description of leave policies as required under chapter 181 and United States
92.18Code, title 29, chapter 28;
92.19    (4) a description of the work hours and work hours policy as required under chapter
92.20181, United States Code, title 29, chapter 201, or a valid collective bargaining agreement;
92.21and
92.22    (5) a description of the occupational hazards known to exist for the position as
92.23required under chapters 181 and 182 and United States Code, title 29, chapter 15.
92.24    (b) The explanation must also include information on the following employee rights
92.25as protected by state or federal law and a description of where additional information
92.26about those rights may be obtained:
92.27    (1) the right to organize and bargain collectively as required under this chapter and
92.28chapter 177, and United States Code, title 29, chapter 7;
92.29    (2) the right to a safe workplace as required under chapters 181 and 182 and United
92.30States Code, title 29, chapter 15; and
92.31    (3) the right to be free from discrimination as required under this chapter and
92.32chapters 181, 182, and 363A, and United States Code, title 42, chapter 21.
92.33    Subd. 5. Civil action. A person aggrieved as a result of a violation of this section
92.34may file suit in any district court of this state. If the court finds that the respondent has
93.1intentionally violated this section, the court may award damages up to and including an
93.2amount equal to the original damages and may provide injunctive relief.
93.3    Subd. 6. Criminal penalty. An employer who violates this section is guilty of a
93.4misdemeanor.

93.5    Sec. 16. [179.87] MEATPACKING INDUSTRY WORKERS RIGHTS
93.6OMBUDSMAN.
93.7    Subdivision 1. Position established. The position of meatpacking industry workers
93.8rights ombudsman is established within the Department of Labor and Industry. The
93.9ombudsman shall be an employee of the department. The ombudsman shall be appointed
93.10by the commissioner in consultation with the chairs of the standing committees of the
93.11senate and house of representatives with jurisdiction over labor and employment issues in
93.12accordance with the preference established in subdivision 5.
93.13    Subd. 2. Duties. The ombudsman shall inspect and review the practices and
93.14procedures of meatpacking operations in the state. The ombudsman shall work to ensure
93.15workers rights under section 179.86 are protected.
93.16    Subd. 3. Access. The ombudsman or designated representatives of the ombudsman
93.17shall have access to all meatpacking operations in the state at any time meatpacking
93.18products are being processed and industry workers are on the job.
93.19    Subd. 4. Office. Necessary office space, furniture, equipment, and supplies as
93.20well as necessary assistance for the ombudsman shall be provided by the Department of
93.21Labor and Industry.
93.22    Subd. 5. Language preference. Preference shall be given to applicants for the
93.23ombudsman position who are fluent in languages in addition to English.
93.24    Subd. 6. Report. The ombudsman shall, on or before December 1 of each year,
93.25submit a report to the members of the legislature and the governor regarding any
93.26recommended actions the ombudsman deems necessary or appropriate to provide for the
93.27fair treatment of workers in the meatpacking industry.

93.28    Sec. 17. Minnesota Statutes 2006, section 181.78, is amended by adding a subdivision
93.29to read:
93.30    Subd. 4. Forfeiture of employer rights. (a) This subdivision applies to an
93.31invention or proposal by an employee in which the employer has an enforceable interest
93.32by contract or otherwise.
93.33(b) An employer who has a right to develop or utilize an invention or proposal
93.34must make a substantial investment in the invention or proposal within five years of the
94.1submission of the invention or proposal or forfeit all rights and interests in the invention
94.2or proposal to the employee.
94.3(c) An employee who has acquired the rights and interests of an employer under
94.4paragraph (b) may transfer that interest in the invention or proposal to anyone.
94.5(d) An employer must notify in writing an employee who submits an invention or
94.6proposal to the employer of the employee's right under this subdivision within ten days of
94.7the submission. The employer must date and describe the proposal or invention received
94.8by the employer and provide a copy to the employee.

94.9    Sec. 18. Minnesota Statutes 2006, section 182.65, subdivision 2, is amended to read:
94.10    Subd. 2. Legislative findings and purpose. The legislature finds that the burden on
94.11employers and employees of this state resulting from personal injuries and illnesses arising
94.12out of work situations is substantial; that the prevention of these injuries and illnesses is an
94.13important objective of the government of this state; that the greatest hope of attaining this
94.14objective lies in programs of research and education, and in the earnest cooperation of
94.15government, employers and employees; and that a program of regulation and enforcement
94.16is a necessary supplement to these more basic programs.
94.17    The legislature declares it to be its purpose and policy through the exercise of its
94.18powers to assure so far as possible every worker in the state of Minnesota safe and
94.19healthful working conditions and to preserve our human resources by:
94.20    (a) authorizing the Occupational Safety and Health Advisory Council to advise,
94.21consult with or recommend on any matters relating to the Minnesota occupational
94.22safety and health plan to the commissioner of labor and industry and by authorizing the
94.23commissioner of labor and industry to promulgate and enforce mandatory occupational
94.24safety and health standards applicable to employers and employees in the state of
94.25Minnesota;
94.26    (b) encouraging employers and employees to increase their efforts to reduce the
94.27number of occupational safety and health hazards at their places of employment, and to
94.28stimulate employers and employees to institute new and to perfect existing programs for
94.29providing safe and healthful working conditions;
94.30    (c) providing that employers and employees have separate but dependent
94.31responsibilities and rights with respect to achieving safe and healthful working conditions;
94.32    (d) providing for research in the field of occupational safety and health; including
94.33the psychological factors involved, and by developing innovative methods, techniques,
94.34and approaches for dealing with occupational safety and health problems;
94.35    (e) exploring ways to discover latent diseases, establishing causal connections
94.36between diseases and work in environmental conditions, and conducting other research
95.1relating to health problems, in recognition of the fact that occupational health standards
95.2present problems often different from those involved in occupational safety;
95.3    (f) utilizing advances already made by federal laws and regulations providing safe
95.4and healthful working conditions;
95.5    (g) providing criteria which will assure insofar as practicable that no employee
95.6will suffer diminished health, functional capacity, or life expectancy as a result of work
95.7experience;
95.8    (h) providing an effective enforcement program which shall include locating
95.9enforcement personnel in areas of the state with a higher incidence of workplace fatalities,
95.10injuries and complaints and a a prohibition against giving advance notice of an inspection
95.11and sanctions for any individual violating this prohibition;
95.12    (i) providing for appropriate reporting procedures with respect to occupational
95.13safety and health, which procedures will help achieve the objectives of this chapter and
95.14accurately describe the nature of the occupational safety and health problem;
95.15    (j) encouraging joint labor-management efforts to reduce injuries and diseases
95.16arising out of employment;
95.17    (k) providing consultation to employees and employers which will aid them in
95.18complying with their responsibilities under this chapter where such consultation does not
95.19interfere with the effective enforcement of this chapter; and
95.20    (l) providing for training programs to increase the number and competence of
95.21personnel engaged in the field of occupational safety and health.

95.22    Sec. 19. [182.6551] CITATION.
95.23    Sections 182.6551 to 182.6553 may be cited as the "Safe Patient Handling Act."

95.24    Sec. 20. [182.6552] DEFINITIONS.
95.25    Subdivision 1. Direct patient care worker. "Direct patient care worker" means an
95.26individual doing the job of directly providing physical care to patients including nurses, as
95.27defined by section 148.171, who provide physical care to patients.
95.28    Subd. 2. Health care facility. "Health care facility" means a hospital as defined in
95.29section 144.50, subdivision 2, a medical facility as defined in section 144.561, subdivision
95.301, paragraph (b), a nursing home as defined in section 144A.01, subdivision 5, .
95.31    Subd. 3. Safe patient handling. "Safe patient handling" means a process, based on
95.32scientific evidence on causes of injuries, that uses safe patient handling equipment rather
95.33than people to transfer, move, and reposition patients in all health care facilities to reduce
95.34workplace injuries. This process also reduces the risk of injury to patients.
96.1    Subd. 4. Safe patient handling equipment. "Safe patient handling equipment"
96.2means engineering controls, lifting and transfer aids, or mechanical assistive devices used
96.3by nurses and other direct patient care workers instead of manual lifting to perform the
96.4acts of lifting, transferring, and repositioning health care facility patients and residents.

96.5    Sec. 21. [182.6553] SAFE PATIENT HANDLING PROGRAM.
96.6    Subdivision 1. Safe patient handling program required. (a) By July 1, 2008,
96.7every licensed health care facility in the state shall adopt a written safe patient handling
96.8policy establishing the facility's plan to achieve by January 1, 2011, the goal of minimizing
96.9manual lifting of patients by nurses and other direct patient care workers by utilizing
96.10safe patient handling equipment.
96.11    (b) The program shall address:
96.12    (1) assessment of hazards with regard to patient handling;
96.13    (2) the acquisition of an adequate supply of appropriate safe patient handling
96.14equipment;
96.15    (3) initial and ongoing training of nurses and other direct patient care workers on
96.16the use of this equipment;
96.17    (4) procedures to ensure that physical plant modifications and major construction
96.18projects are consistent with program goals; and
96.19    (5) periodic evaluations of the safe patient handling program.
96.20    Subd. 2. Safe patient handling committee. (a) By July 1, 2008, every licensed
96.21health care facility in the state shall establish a safe patient handling committee either by
96.22creating a new committee or assigning the functions of a safe patient handling committee
96.23to an existing committee.
96.24    (b) Membership of a safe patient handling committee or an existing committee must
96.25meet the following requirements:
96.26    (1) at least half the members shall be nonmanagerial nurses and other direct patient
96.27care workers; and
96.28    (2) in a health care facility where nurses and other direct patient care workers
96.29are covered by a collective bargaining agreement, the union shall select the committee
96.30members proportionate to its representation of nonmanagement nurses and other direct
96.31patient care workers.
96.32    (c) A health care organization with more than one covered health care facility may
96.33establish a committee at each facility or one committee to serve this function for all the
96.34facilities. If the organization chooses to have one overall committee for multiple facilities,
96.35at least half of the members of the overall committee must be nonmanagerial nurses and
96.36other direct patient care workers and each facility must be represented on the committee.
97.1    (d) Employees who serve on a safe patient handling committee must be compensated
97.2by their employer for all hours spent on committee business.
97.3    Subd. 3. Facilities with existing programs. A facility that has already adopted a
97.4safe patient handling policy that satisfies the requirements of subdivision 1, and established
97.5a safe patient handling committee by July 1, 2008, is considered to be in compliance
97.6with those requirements. The committee must continue to satisfy the requirements of
97.7subdivision 2, paragraph (b), on an ongoing basis.
97.8    Subd. 4. Committee duties. A safe patient handling committee shall:
97.9    (1) complete a patient handling hazard assessment that:
97.10    (i) considers patient handling tasks, types of nursing units, patient populations, and
97.11the physical environment of patient care areas;
97.12    (ii) identifies problems and solutions;
97.13    (iii) identifies areas of highest risk for lifting injuries; and
97.14    (iv) recommends a mechanism to report, track, and analyze injury trends;
97.15    (2) make recommendations on the purchase, use, and maintenance of an adequate
97.16supply of appropriate safe patient handling equipment;
97.17    (3) make recommendations on training of nurses and other direct patient care
97.18workers on use of safe patient handling equipment, initially when the equipment arrives at
97.19the facility and periodically afterwards;
97.20    (4) conduct annual evaluations of the safe patient handling implementation plan and
97.21progress toward goals established in the safe patient handling plan; and
97.22    (5) recommend procedures to ensure that, when remodeling of patient care areas
97.23occurs, the plans incorporate safe patient handling equipment or the physical space and
97.24construction design needed to accommodate safe patient handling equipment at a later date.
97.25    Subd. 5. Training materials. The commissioner shall make training materials on
97.26implementation of this section available to all health care facilities at no cost as part of the
97.27training and education duties of the commissioner under section 182.673.
97.28    Subd. 6. Enforcement. This section shall be enforced by the commissioner under
97.29section 182.661. A violation of this section is subject to the penalties provided under
97.30section 182.666.
97.31    Subd. 7. Grant program. The commissioner may make grants to health care
97.32facilities to acquire safe patient handling equipment and for training on safe patient
97.33handling and safe patient handling equipment. Grants to any one facility may not exceed
97.34$40,000. A grant must be matched on a dollar-for-dollar basis by the grantee. The
97.35commissioner shall establish a grant application process. The commissioner may give
98.1priority for grants to facilities that demonstrate that acquiring safe patient handling
98.2equipment will impose a financial hardship on the facility. For health care facilities
98.3that provide evidence of hardship, the commissioner may waive the 50 percent match
98.4requirement and may grant such a facility more than $40,000. Health care facilities that
98.5the commissioner determines are experiencing hardship shall not be required to meet the
98.6safe patient handling requirements until July 1, 2012.

98.7    Sec. 22. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:
98.8    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall is
98.9not be eligible to receive unemployment benefits for any week with respect to which the
98.10applicant is receiving, has received, or has filed for payment, equal to or in excess of the
98.11applicant's weekly unemployment benefit amount, in the form of:
98.12    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
98.13shall does not apply to vacation pay paid upon a permanent separation from employment;
98.14    (2) severance pay, bonus pay, sick pay, and any other money payments, except
98.15earnings under subdivision 5, and back pay under subdivision 6, paid by an employer
98.16because of, upon, or after separation from employment, but only if the money payment is
98.17considered wages at the time of payment under section 268.035, subdivision 29, or United
98.18States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act;.
98.19This clause does not apply to the first $10,000 of any amount of severance pay, bonus
98.20pay, sick pay, or any other money payments paid to an employee with annual salary or
98.21wages under $75,000; or
98.22    (3) pension, retirement, or annuity payments from any plan contributed to by a base
98.23period employer including the United States government, except Social Security benefits
98.24which that are provided for in subdivision 4. The base period employer is considered to
98.25have contributed to the plan if the contribution is excluded from the definition of wages
98.26under section 268.035, subdivision 29, clause (1), or United States Code, title 26, section
98.273121, clause (2), of the Federal Insurance Contribution Act.
98.28    An applicant shall is not be considered to have received the lump sum payment if the
98.29applicant immediately deposits that payment in a qualified pension plan or account; or.
98.30    (4) holiday pay.
98.31    (b) This subdivision shall apply applies to all the weeks of payment and shall be.
98.32Payments under paragraph (a), clauses (1) and (2), are applied to the period immediately
98.33following the last day of employment. and the number of weeks of payment shall be, for
98.34purposes of those clauses, is determined as follows:
98.35    (1) if the payments are made periodically, the total of the payments to be received
98.36shall be is divided by the applicant's last level of regular weekly pay from the employer; or
99.1    (2) if the payment is made in a lump sum, that sum shall be is divided by the
99.2applicant's last level of regular weekly pay from the employer.
99.3    (c) If the payment is less than the applicant's weekly unemployment benefit
99.4amount, unemployment benefits shall be are reduced by the amount of the payment. If
99.5the computation of reduced unemployment benefits is not a whole dollar, it shall be is
99.6rounded down to the next lower whole dollar.
99.7EFFECTIVE DATE.This section is effective for unemployment benefits paid on
99.8or after September 30, 2007, regardless of when the continued request was filed or the
99.9week for which the unemployment benefits are paid.

99.10    Sec. 23. Minnesota Statutes 2006, section 268.196, is amended by adding a subdivision
99.11to read:
99.12    Subd. 4. Use of accounts for unemployed worker assistance. Payment of
99.13employee compensation costs from the accounts under this section must be used to
99.14provide direct benefit to unemployed and underemployed workers through the state's
99.15workforce centers. At least 75 percent of the employee compensation paid from accounts
99.16under this section must be used for employees at workforce centers who provide direct
99.17assistance to unemployed and underemployed workers and no more than 25 percent may
99.18be used for providing hiring and human resource services for employers. The accounts
99.19under this section may be used to establish an internet based labor exchange system.
99.20By July 1 of each year, the commissioner must submit a report to the committees of
99.21the legislature responsible for oversight of unemployment insurance with details on the
99.22use of funds in these accounts, including the number of employee positions funded, the
99.23location of the employees, and the use of funds for internet labor exchange system and
99.24other business assistance,
99.25    Subd. 5. Unemployment insurance benefits telephone system . The commissioner
99.26must ensure that the telephone system used for unemployment insurance benefits provides
99.27an option for any caller to speak to an unemployment insurance specialist. An individual
99.28who calls any of the publicized telephone numbers seeking information about applying
99.29for benefits or on the status of a claim must have the option to speak on the phone to a
99.30specialist who can provide direct assistance or can direct the caller to the person or office
99.31that is able to respond to the callers needs.

99.32    Sec. 24. Minnesota Statutes 2006, section 268A.01, subdivision 13, is amended to read:
99.33    Subd. 13. Supported employment. (a) "Supported employment" means
99.34employment of a person with a disability so severe that the person needs ongoing training
99.35and support to get and keep a job in which:
100.1    (1) the person engages in paid work in a position removed from the service vendor's
100.2site where individuals without disabilities who do not require public subsidies also may
100.3be employed;
100.4    (2) public funds are necessary to provide ongoing training and support services
100.5throughout the period of the person's employment; and
100.6    (3) the person has the opportunity for social interaction with individuals who do not
100.7have disabilities and who are not paid caregivers.
100.8    (b) If the commissioner has certified a rehabilitation facility setting as integrated,
100.9then employment at that site may be considered supported employment.

100.10    Sec. 25. Minnesota Statutes 2006, section 268A.01, is amended by adding a
100.11subdivision to read:
100.12    Subd. 14. Affirmative business enterprise employment. "Affirmative business
100.13enterprise employment" means employment which provides paid work on the premises of
100.14an affirmative business enterprise as certified by the commissioner.
100.15    Affirmative business enterprise employment is considered community employment
100.16for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided
100.17that the wages for individuals reported must be at or above customary wages for the
100.18same employer. The employer must also provide one benefit package that is available to
100.19all employees.

100.20    Sec. 26. Minnesota Statutes 2006, section 268A.085, subdivision 1, is amended to read:
100.21    Subdivision 1. Appointment; membership. Every city, town, county, nonprofit
100.22corporation, or combination thereof establishing a rehabilitation facility shall appoint a
100.23rehabilitation facility board of no fewer than nine seven voting members before becoming
100.24eligible for the assistance provided by sections 268A.06 to 268A.15. When any city,
100.25town, or county singly establishes such a rehabilitation facility, the board shall be
100.26appointed by the chief executive officer of the city or the chair of the governing board
100.27of the county or town. When any combination of cities, towns, counties, or nonprofit
100.28corporations establishes a rehabilitation facility, the chief executive officers of the cities,
100.29nonprofit corporations, and the chairs of the governing bodies of the counties or towns
100.30shall appoint the board. If a nonprofit corporation singly establishes a rehabilitation
100.31facility, the corporation shall appoint the board of directors. Membership on a board
100.32shall be representative of the community served and shall include a person with a
100.33disability. One-third to one-half of the board shall be representative of industry or
100.34business. The remaining members should be representative of lay associations for persons
100.35with a disability, labor, the general public, and education, welfare, medical, and health
100.36professions. Nothing in sections 268A.06 to 268A.15 shall be construed to preclude
101.1the appointment of elected or appointed public officials or members of the board of
101.2directors of the sponsoring nonprofit corporation to the board, so long as the representation
101.3described above is preserved. If a county establishes an extended employment program
101.4and manages the program with county employees, the governing board shall be the county
101.5board of commissioners, and other provisions of this chapter pertaining to membership on
101.6the governing board do not apply.

101.7    Sec. 27. Minnesota Statutes 2006, section 268A.15, is amended by adding a
101.8subdivision to read:
101.9    Subd. 9. Integrated setting. At the commissioner's discretion, paid work on the
101.10premises of a rehabilitation facility may be certified as an integrated setting after a site
101.11review by the department.

101.12    Sec. 28. Minnesota Statutes 2006, section 462.39, is amended by adding a subdivision
101.13to read:
101.14    Subd. 5. Local planning assistance. A regional development commission or,
101.15in regions not served by regional development commissions, a regional organization
101.16selected by the commissioner of employment and economic development, may develop a
101.17program to support planning on behalf of local units of government. The local planning
101.18must be related to issues of regional or statewide significance and may include, but is not
101.19limited to, the following:
101.20    (1) local planning and development assistance, which may include local zoning
101.21ordinances and land use plans;
101.22    (2) community or economic development plans, which may include workforce
101.23development plans, housing development plans and market analysis, JOBZ administration,
101.24grant writing assistance, and grant administration;
101.25    (3) environment and natural resources plans, which may include solid waste
101.26management plans, wastewater management plans, and renewable energy development
101.27plans;
101.28    (4) rural community health services; and
101.29    (5) development of geographical information systems to serve regional needs,
101.30including hardware and software purchases and related labor costs.
101.31    Each regional development commission or organization shall submit to the
101.32commissioner of employment and economic development an annual work program
101.33that outlines the work items for the upcoming year and establishes the relationship of
101.34the work items to development issues of regional or statewide significance. The entity
101.35completing the annual work program and identifying the statewide development issues
101.36shall consider input from the Departments of Employment and Economic Development,
102.1Natural Resources, Transportation, Agriculture, Commerce, and other state agencies as
102.2appropriate to the issues.

102.3    Sec. 29. WORKFORCE ENHANCEMENT FEE.
102.4    If the commissioner of employment and economic development determines that
102.5the need for services under the dislocated worker program substantially exceeds the
102.6resources that will be available for the program, the commissioner may increase the
102.7special assessment levied under Minnesota Statutes, section 116L.20, subdivision 1, to no
102.8more than .12 percent of taxable wages.

102.9    Sec. 30. FEDERAL PROCUREMENT LIAISON.
102.10    The commissioner of employment and economic development must establish and
102.11operate a technology and commercialization unit in the Department of Employment and
102.12Economic Development. Appropriation for this purpose must be used to: coordinate
102.13public and private efforts to procure federal funding for collaborative research and
102.14development projects of primary benefit to small- and medium-sized businesses; promote
102.15contractual relationships between Minnesota businesses who, as recipients of federal
102.16grants, are prime contractors, and appropriate Minnesota-based subcontractors; assess
102.17the research and development capabilities of small- and medium-sized businesses;
102.18undertake referral activities to link Minnesota companies with federal requests for
102.19proposal opportunities; and develop a framework for Minnesota companies to establish
102.20sole-sourcing relationships with federal agencies.
102.21    The commissioner must report to the committees in the house of representatives and
102.22the senate having jurisdiction over bioscience and technology issues on the activities of
102.23the technology and commercialization unit by June 30 of each year.

102.24    Sec. 31. LOCATION OF NORTHERN MINNESOTA INSPECTORS.
102.25    By December 31, 2007, the Commissioner of Labor and Industry must assign three
102.26Occupational Safety and Health inspectors to one or more offices on the Iron Range
102.27and one inspector to an office in Bemidji.

102.28    Sec. 32. ROLE OF STATE LEGISLATURE IN TRADE POLICY.
102.29    (a) It shall be the policy of the state that approval for the state to be bound by any
102.30trade agreement requires the consent of the state legislature.
102.31    (b) Four state legislative contacts must be informed by the governor when any trade
102.32agreement arrives in the governor's office. The four contacts are the majority and minority
102.33leader of the state senate or their designated legislators and the speaker and minority
102.34leader in the state house of representatives or their designated legislators. The legislature
102.35declares that the purposes of the state contacts are to:
103.1    (1) serve as the state's official legislative liaisons with the governor and the state
103.2legislature on trade-related matters;
103.3    (2) serve as the legislature's designated recipients from the governor of federal
103.4requests for consent to consultation regarding investment, procurement, services, or other
103.5provisions of international trade agreements, which impinge on state law or regulatory
103.6authority reserved to the states;
103.7    (3) transmit information regarding federal requests from the governor to all
103.8appropriate legislative committees;
103.9    (4) issue a formal request to the Department of Employment and Economic
103.10Development and all appropriate state agencies to provide analysis of all proposed trade
103.11agreements' impact on state legislative authority and the economy of the state;
103.12    (5) inform all members of the legislature on a regular basis about ongoing trade
103.13negotiations and dispute settlement proceedings with implications for the state more
103.14generally;
103.15    (6) communicate the concerns of the legislature to the governor and United States
103.16trade representative regarding ongoing and proposed trade negotiations; and
103.17    (7) notify the governor and the United States trade representative of the outcome
103.18of any legislative action.
103.19    (c) The following actions are required before the state shall consent to the terms of
103.20a trade agreement:
103.21    (1) when a federal trade request has been received, the governor must submit the
103.22request to the legislative contacts on a day both houses are in session. The request must
103.23contain a copy of the final legal text of the agreement together with:
103.24    (i) a report by the Department of Employment and Economic Development in
103.25consultation with, at a minimum, the following agencies: Department of Administration,
103.26Department of Labor and Industry, Department of Agriculture, Department of Natural
103.27Resources, and the Minnesota Pollution Control Agency. The report shall include an
103.28analysis of how the agreement of the state to the specific provisions of the agreement
103.29will change or affect existing state law;
103.30    (ii) a statement of any administrative action proposed to implement these trade
103.31agreement provisions in the state; and
103.32    (iii) a draft of legislation authorizing the state to sign on to the specific listed
103.33provisions of the agreement in question;
103.34    (2) at least one public hearing, with adequate public notice, shall occur before the
103.35legislature votes on the bill; and
104.1    (3) the bill authorizing the state to sign on to specific listed provisions of an
104.2agreement is enacted into law.
104.3    (d) It is the sense of this legislature that Congress should pass legislation instructing
104.4the United States trade representative to fully and formally consult individual state
104.5legislatures regarding procurement, services, investment, or any other trade agreement
104.6rules that impact state laws or authority before negotiations begin and as they develop,
104.7and to seek consent from state legislatures in addition to governors prior to binding
104.8states to conform their laws to the terms of international commercial agreements. Such
104.9legislation is necessary to ensure the prior informed consent of the state with regard to
104.10future international trade and investment agreements.
104.11    (e) The state attorney general shall notify the United States trade representative of
104.12the policies in paragraph (d) in writing no later than 30 days after its effective date, and
104.13shall provide copies of the notice to the president of the senate, speaker of the house of
104.14representatives, the governor, and the state's congressional delegation.

104.15    Sec. 33. STUDY; SAFE PATIENT HANDLING.
104.16    (a) The commissioner of labor and industry shall study ways to require workers'
104.17compensation insurers to recognize compliance with Minnesota Statutes, section
104.18182.6553, in the workers' compensation premiums of health care and long-term care
104.19facilities. The commissioner shall report by January 15, 2008, the results of the study
104.20to the chairs of the policy committees of the legislature with primary jurisdiction over
104.21workers' compensation issues.
104.22    (b) By January 15, 2008, the commissioner must make recommendations to the
104.23legislature regarding funding sources available to health care facilities for safe patient
104.24handling programs and equipment, including, but not limited to, low interest loans, interest
104.25free loans, and federal, state or county grants.

104.26    Sec. 34. WORK GROUP; SAFE PATIENT HANDLING.
104.27    The commissioner of labor and industry shall convene a work group comprised of
104.28representatives from the Minnesota State Council on Disability, the Minnesota Medical
104.29Association, and other organizations representing clinics, disability advocates, and direct
104.30care workers, to do the following:
104.31    (1) assess the current options for and use of safe patient handling equipment in
104.32unlicensed outpatient clinics, physician offices, and dental settings;
104.33    (2) identify barriers to the use of safe patient handling equipment in these settings;
104.34and
104.35    (3) define clinical settings that move patients to determine applicability of the Safe
104.36Patient Handling Act.
105.1    The work group must report to the legislature by January 15, 2008, including reports
105.2to the chairs of the senate and house committees on workforce development.

105.3    Sec. 35. REPEALER.
105.4Minnesota Statutes 2006, section 16C.18, subdivision 2, is repealed.


105.7    Section 1. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:
105.8    Subdivision 1. Examination of records. The commissioner may enter during
105.9reasonable office hours or upon request and inspect the place of business or employment of
105.10any employer of employees working in the state, to examine and inspect books, registers,
105.11payrolls, and other records of any employer that in any way relate to wages, hours, and
105.12other conditions of employment of any employees. The commissioner may transcribe any
105.13or all of the books, registers, payrolls, and other records as the commissioner deems
105.14necessary or appropriate and may question the employees to ascertain compliance with
105.15sections 177.21 to 177.35 177.435. The commissioner may investigate wage claims or
105.16complaints by an employee against an employer if the failure to pay a wage may violate
105.17Minnesota law or an order or rule of the department.

105.18    Sec. 2. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:
105.19    Subd. 4. Compliance orders. The commissioner may issue an order requiring an
105.20employer to comply with sections 177.21 to 177.35 177.435, 181.02, 181.03, 181.031,
105.21181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, or with
105.22any rule promulgated under section 177.28. The department shall serve the order upon
105.23the employer or the employer's authorized representative in person or by certified mail
105.24at the employer's place of business. An employer who wishes to contest the order must
105.25file written notice of objection to the order with the commissioner within 15 calendar
105.26days after being served with the order. A contested case proceeding must then be held
105.27in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
105.28served with the order, the employer fails to file a written notice of objection with the
105.29commissioner, the order becomes a final order of the commissioner.

105.30    Sec. 3. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:
105.31    Subd. 8. Court actions; suits brought by private parties. An employee may bring
105.32a civil action seeking redress for a violation or violations of sections 177.21 to 177.35
105.33177.44 directly to district court. An employer who pays an employee less than the wages
105.34and overtime compensation to which the employee is entitled under sections 177.21 to
105.35177.35 177.44 is liable to the employee for the full amount of the wages, gratuities, and
106.1overtime compensation, less any amount the employer is able to establish was actually
106.2paid to the employee and for an additional equal amount as liquidated damages. In
106.3addition, in an action under this subdivision the employee may seek damages and other
106.4appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement
106.5between the employee and the employer to work for less than the applicable wage is not
106.6a defense to the action.

106.7    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:
106.8    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may
106.9be filed in the district court of the county wherein a violation or violations of sections
106.10177.21 to 177.35 177.44 are alleged to have been committed, where the respondent resides
106.11or has a principal place of business, or any other court of competent jurisdiction. The
106.12action may be brought by one or more employees.

106.13    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:
106.14    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8,
106.15the court shall order an employer who is found to have committed a violation or violations
106.16of sections 177.21 to 177.35 177.44 to pay to the employee or employees reasonable costs,
106.17disbursements, witness fees, and attorney fees.

106.18    Sec. 6. Minnesota Statutes 2006, section 177.28, subdivision 1, is amended to read:
106.19    Subdivision 1. General authority. The commissioner may adopt rules, including
106.20definitions of terms, to carry out the purposes of sections 177.21 to 177.35177.44, to
106.21prevent the circumvention or evasion of those sections, and to safeguard the minimum
106.22wage and overtime rates established by sections 177.24 and 177.25.

106.23    Sec. 7. Minnesota Statutes 2006, section 177.30, is amended to read:
106.24177.30 KEEPING RECORDS; PENALTY.
106.25    Every employer subject to sections 177.21 to 177.35 177.44 must make and keep a
106.26record of:
106.27    (1) the name, address, and occupation of each employee;
106.28    (2) the rate of pay, and the amount paid each pay period to each employee;
106.29    (3) the hours worked each day and each workweek by the employee; and
106.30    (4) for each employer subject to sections 177.41 to 177.44, and while performing
106.31work on public works projects funded in whole or in part with state funds, the prevailing
106.32wage master job classification of each employee working on the project for each hour
106.33worked; and
106.34    (4) (5) other information the commissioner finds necessary and appropriate to
106.35enforce sections 177.21 to 177.35. The records must be kept for three years in or near the
107.1premises where an employee works except each employer subject to sections 177.41 to
107.2177.44, and while performing work on public works projects funded in whole or in part
107.3with state funds, the records must be kept for three years after the contracting authority
107.4has made final payment on the public works project.
107.5    The commissioner may fine an employer up to $1,000 for each failure to maintain
107.6records as required by this section. This penalty is in addition to any penalties provided
107.7under section 177.32, subdivision 1. In determining the amount of a civil penalty under
107.8this subdivision, the appropriateness of such penalty to the size of the employer's business
107.9and the gravity of the violation shall be considered.

107.10    Sec. 8. Minnesota Statutes 2006, section 177.43, subdivision 3, is amended to read:
107.11    Subd. 3. Contract requirements. The contract must specifically state the prevailing
107.12wage rates, prevailing hours of labor, and hourly basic rates of pay. The contract must also
107.13provide that the contracting authority may demand and the contractor or subcontractor
107.14shall furnish to the contracting authority, copies of any and all payrolls, and that the
107.15contracting authority may examine all records relating to wages paid laborers or mechanics
107.16on work to which sections 177.41 to 177.44 apply. The requirements of this subdivision
107.17are in addition to any other requirements or authority set forth in other laws or rules for
107.18work to which sections 177.41 to 177.44 apply.

107.19    Sec. 9. Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:
107.20    Subd. 4. Determination by commissioner; posting; petition for reconsideration.
107.21    The prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all
107.22trades and occupations required in any project must be ascertained before the state asks for
107.23bids. The commissioner of labor and industry shall investigate as necessary to ascertain
107.24the information. The commissioner Each contractor and subcontractor performing work
107.25on a public project shall keep the information posted on the project in at least one
107.26conspicuous place for the information of the employees working on the project. A person
107.27aggrieved by a final determination of the commissioner may petition the commissioner for
107.28reconsideration of findings. A person aggrieved by a decision of the commissioner after
107.29reconsideration may, within 20 days after the decision, petition the commissioner for a
107.30public hearing in the manner of a contested case under sections 14.57 to 14.61.

107.31    Sec. 10. Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:
107.32    Subd. 6. Examination of records; investigation by the department. The
107.33Department of Labor and Industry shall enforce this section. The department may
107.34demand, and the contractor and subcontractor shall furnish to the department, copies
107.35of any or all payrolls. The department may examine all records relating to wages paid
108.1laborers or mechanics on work to which sections 177.41 to 177.44 apply. The department
108.2shall employ at least three investigators to perform on-site project reviews, receive and
108.3investigate complaints of violations of this section, and conduct training and outreach to
108.4contractors and contracting authorities for public works projects financed in whole or
108.5in part with state funds.
108.6    Subd. 6a. Prevailing wage violations. Upon issuing a compliance order to an
108.7employer pursuant to sections 177.27, subdivision 4 for violation of sections 177.41 to
108.8177.44, the commissioner shall issue a withholding order to the contracting authority
108.9ordering the contracting authority to withhold payment of sufficient sum to the prime
108.10or general contractor on the project to satisfy the back wages assessed or otherwise
108.11cure the violation, and the contracting authority must withhold the sum ordered until
108.12the compliance order has become a final order of the commissioner and has been fully
108.13paid or otherwise resolved by the employer.
108.14    During an investigation of a violation of sections 177.41 to 177.44 which the
108.15commissioner reasonably determines is likely to result in the finding of violation of
108.16sections 177.41 to 177.44 and the issuance of a compliance order pursuant to section
108.17177.27, subdivision 4, the commissioner may notify the contracting authority of the
108.18determination and the amount expected to be assessed and the contracting authority shall
108.19give the commissioner 90 days prior notice of the date the contracting authority intends to
108.20make final payment.

108.21    Sec. 11. Minnesota Statutes 2006, section 325E.37, subdivision 6, is amended to read:
108.22    Subd. 6. Scope; limitations. (a) This section applies to a sales representative who,
108.23during some part of the period of the sales representative agreement:
108.24    (1) is a resident of Minnesota or maintains that person's principal place of business
108.25in Minnesota; or
108.26    (2) whose geographical territory specified in the sales representative agreement
108.27includes part or all of Minnesota.
108.28    (b) To be effective, any demand for arbitration under subdivision 5 must be made
108.29in writing and delivered to the principal on or before one year after the effective date of
108.30the termination of the agreement.
108.31    (c) A provision in any contract between a sales representative dealing in plumbing
108.32equipment or supplies and a principal purporting to waive any provision of this act,
108.33whether by express waiver or by a provision stipulating that the contract is subject to the
108.34laws of another state, shall be void.

108.35    Sec. 12. Minnesota Statutes 2006, section 326.38, is amended to read:
109.1326.38 LOCAL REGULATIONS.
109.2    Any city having a system of waterworks or sewerage, or any town in which reside
109.3over 5,000 people exclusive of any statutory cities located therein, or the metropolitan
109.4airports commission, may, by ordinance, adopt local regulations providing for plumbing
109.5permits, bonds, approval of plans, and inspections of plumbing, which regulations are
109.6not in conflict with the plumbing standards on the same subject prescribed by the state
109.7commissioner of health labor and industry. No city or such town shall prohibit plumbers
109.8licensed by the state commissioner of health labor and industry from engaging in or
109.9working at the business, except cities and statutory cities which, prior to April 21, 1933,
109.10by ordinance required the licensing of plumbers. No city or town may require a license
109.11for persons performing building sewer or water service installation who have completed
109.12pipe laying training as prescribed by the commissioner of labor and industry. Any city
109.13by ordinance may prescribe regulations, reasonable standards, and inspections and grant
109.14permits to any person, firm, or corporation engaged in the business of installing water
109.15softeners, who is not licensed as a master plumber or journeyman plumber by the state
109.16commissioner of health labor and industry, to connect water softening and water filtering
109.17equipment to private residence water distribution systems, where provision has been
109.18previously made therefor and openings left for that purpose or by use of cold water
109.19connections to a domestic water heater; where it is not necessary to rearrange, make any
109.20extension or alteration of, or addition to any pipe, fixture or plumbing connected with
109.21the water system except to connect the water softener, and provided the connections so
109.22made comply with minimum standards prescribed by the state commissioner of health
109.23labor and industry.

109.24    Sec. 13. Minnesota Statutes 2006, section 326.40, subdivision 1, is amended to read:
109.25    Subdivision 1. License required; master and journeyman plumbers. In any city
109.26now or hereafter having 5,000 or more population, according to the last federal census,
109.27and having a system of waterworks or sewerage, (a) No person, firm, or corporation shall
109.28engage in or work at the business of a master plumber or, restricted master plumber,
109.29journeyman plumber, and restricted journeyman plumber unless licensed to do so by the
109.30state commissioner of health labor and industry. A license is not required for persons
109.31performing building sewer or water service installation who have completed pipe laying
109.32training as prescribed by the commissioner of labor and industry. A master plumber may
109.33also work as a journeyman plumber, a restricted journeyman plumber, and a restricted
109.34master plumber. A journeyman plumber may also work as a restricted journeyman
109.35plumber. Anyone not so licensed may do plumbing work which complies with the
109.36provisions of the minimum standard prescribed by the state commissioner of health labor
110.1and industry on premises or that part of premises owned and actually occupied by the
110.2worker as a residence, unless otherwise forbidden to do so by a local ordinance.
110.3    In any such city (b) No person, firm, or corporation shall engage in the business of
110.4installing plumbing nor install plumbing in connection with the dealing in and selling
110.5of plumbing material and supplies unless at all times a licensed master plumber, or in
110.6cities and towns with a population of fewer than 5,000 according to the federal census a
110.7restricted master plumber, who shall be responsible for proper installation, is in charge
110.8of the plumbing work of the person, firm, or corporation.
110.9    The Department of Health Labor and Industry shall prescribe rules, not inconsistent
110.10herewith, for the examination and licensing of plumbers.

110.11    Sec. 14. [326.402] RESTRICTED PLUMBER LICENSE.
110.12    Subdivision 1. Licensure. The commissioner of labor and industry shall grant a
110.13restricted journeyman or master plumber license to an individual if:
110.14    (1) the individual completes an application with information required by the
110.15commissioner of labor and industry;
110.16    (2) the completed application is accompanied by a fee of $90;
110.17    (3) the commissioner of labor and industry receives the completed application and
110.18fee before January 1, 2008;
110.19    (4) the completed application demonstrates that the applicant has had at least two
110.20years for a restricted journeyman plumber license or four years for a restricted master
110.21plumber license of practical plumbing experience in the plumbing trade prior to the
110.22application; and
110.23    (5) during the entire time for which the applicant is claiming experience in
110.24contracting for plumbing work under clause (4), the applicant was in compliance with all
110.25applicable requirements of section 326.40.
110.26    Subd. 2. Use of license. A restricted master plumber and restricted journeyman
110.27plumber may engage in the plumbing trade in all areas of the state except in cities and
110.28towns with a population of more than 5,000 according to the federal census.
110.29    Subd. 3. Application period. Applications for restricted master plumber and
110.30restricted journeyman plumber licenses must be submitted to the commissioner prior
110.31to January 1, 2008.
110.32    Subd. 4. Renewal; use period for license. A restricted master plumber and
110.33restricted journeyman plumber license must be renewed annually for as long as that
110.34licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
110.35restricted journeyman plumber license within 12 months after the expiration date will
111.1result in permanent forfeiture of the restricted master plumber and restricted journeyman
111.2plumber license.
111.3    Subd. 5. Prohibition of transference. A restricted master plumber and restricted
111.4journeyman plumber license may not be transferred or sold to any other person.
111.5    Subd. 6. Bond; insurance. A restricted master plumber licensee is subject to the
111.6bond and insurance requirements of section 326.40, subdivision 2, unless the exemption
111.7provided by section 326.40, subdivision 3, applies.
111.8    Subd. 7. Fee. The annual fee for the restricted master plumber and restricted
111.9journeyman plumber licenses is the same fee as for a master or journeyman plumber
111.10license, respectively.

111.11    Sec. 15. REPEALER.
111.12Minnesota Statutes 2006, section 326.45, is repealed.


111.15    Section 1. APPROPRIATION; IRON RANGE RESOURCES AND
111.16REHABILITATION.
111.17    $500,000 is appropriated from the Iron Range Resources and Rehabilitation Board
111.18fund for fiscal year 2008 for allocation in this section:
111.19    (1) $225,000 is for Aitkin County Growth, Inc. to extend electric service and other
111.20infrastructure to a peat project in Spencer Township in Aitkin County;
111.21    (2) $75,000 is for a nonprofit organization for the preservation of the B'nai Abraham
111.22Synagogue in Virginia, of which $50,000 if for renovation and $25,000 is for a permanent
111.23endowment for the preservation;
111.24    (3) $150,000 is for a grant to the Iron Range Youth in Action Program to assist the
111.25organization employ youth for the construction of community centers; and
111.26    (4) $50,000 is for a grant to the Iron Range Retriever Club for pond and field
111.27construction.
111.28    These are onetime appropriations.

111.29    Sec. 2. [270.99] HOCKEY HERITAGE SURCHARGE.
111.30    Subdivision 1. Imposition. A surcharge of $0.25 is imposed on the sale of every
111.31ticket to a NCAA Division I men's hockey event in the state.
111.32    Subd. 2. Collection; remittance. The surcharge imposed in this section shall be
111.33collected by all sellers of these of tickets with nexus in the state of Minnesota. The seller
111.34shall report the surcharge on a return proscribed by the commissioner of revenue and
111.35shall remit the surcharge with the return.
112.1    Subd. 3. Administration. Unless specifically provided otherwise in this section, the
112.2audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and
112.3administrative provisions in this chapter and chapter 289A that are applicable to taxes
112.4imposed under chapter 297A apply to the surcharge imposed under this section.
112.5    Subd. 4. Deposit of Revenues. The commissioner of revenue shall deposit all
112.6revenues, including penalty and interest, derived from the surcharge imposed in this
112.7section in the hockey surcharge account in the special revenue fund. The amount deposited
112.8under this section is appropriated to the Iron Range Resources and Rehabilitation Board
112.9for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame
112.10Museum provided that it continues to operate in the city. Payments under this section for
112.11the Hockey Hall of Fame are in addition to and must not be used to supplant funding under
112.12section 298.28, subdivision 9c.

112.13    Sec. 3. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:
112.14    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby
112.15created the Iron Range Resources and Rehabilitation Board, consisting of 13 ten members,
112.16five of whom are state senators appointed by the Subcommittee on Committees of the
112.17Rules Committee of the senate, and five of whom are representatives, appointed by the
112.18speaker of the house of representatives. The remaining members shall be appointed one
112.19each by the senate majority leader, the speaker of the house of representatives, and the
112.20governor and must be nonlegislators who reside in a taconite assistance area as defined in
112.21section 273.1341. The members shall be appointed in January of every odd-numbered
112.22year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and
112.23shall serve until January of the next odd-numbered year. Vacancies on the board shall be
112.24filled in the same manner as the original members were chosen. At least a majority of
112.25the legislative members of the board shall be elected from state senatorial or legislative
112.26districts in which over 50 percent of the residents reside within a taconite assistance area
112.27as defined in section 273.1341. All expenditures and projects made by the commissioner
112.28of Iron Range resources and rehabilitation shall be consistent with the priorities
112.29established in subdivision 8 and shall first be submitted to the Iron Range Resources and
112.30Rehabilitation Board for approval by a majority of the board of expenditures and projects
112.31for rehabilitation purposes as provided by this section, and the method, manner, and time
112.32of payment of all funds proposed to be disbursed shall be first approved or disapproved by
112.33the board. The board shall biennially make its report to the governor and the legislature on
112.34or before November 15 of each even-numbered year. The expenses of the board shall be
112.35paid by the state from the funds raised pursuant to this section.

113.1    Sec. 4. Minnesota Statutes 2006, section 298.227, is amended to read:
113.2298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
113.3    An amount equal to that distributed pursuant to each taconite producer's taxable
113.4production and qualifying sales under section 298.28, subdivision 9a, shall be held by
113.5the Iron Range Resources and Rehabilitation Board in a separate taconite economic
113.6development fund for each taconite and direct reduced ore producer. Money from the
113.7fund for each producer shall be released by the commissioner after review by a joint
113.8committee consisting of an equal number of representatives of the salaried employees and
113.9the nonsalaried production and maintenance employees of that producer. The District 11
113.10director of the United States Steelworkers of America, on advice of each local employee
113.11president, shall select the employee members. In nonorganized operations, the employee
113.12committee shall be elected by the nonsalaried production and maintenance employees.
113.13The review must be completed no later than six months after the producer presents a
113.14proposal for expenditure of the funds to the committee. The funds held pursuant to this
113.15section may be released only for acquisition of plant and stationary mining equipment
113.16and facilities for the producer or for research and development in Minnesota on new
113.17mining, or taconite, iron, or steel production technology, but only if the producer provides
113.18a matching expenditure to be used for the same purpose of at least 50 percent of the
113.19distribution based on 14.7 cents per ton beginning with distributions in 2002. Effective for
113.20proposals for expenditures of money from the fund approved beginning the day following
113.21final enactment, the commissioner may release the funds only if the proposed expenditure
113.22is approved by a majority of the members of the Iron Range Resources and Rehabilitation
113.23Board. If a producer uses money which has been released from the fund prior to the day
113.24following final enactment to procure haulage trucks, mobile equipment, or mining shovels,
113.25and the producer removes the piece of equipment from the taconite tax relief area defined
113.26in section 273.134 within ten years from the date of receipt of the money from the fund,
113.27a portion of the money granted from the fund must be repaid to the taconite economic
113.28development fund. The portion of the money to be repaid is 100 percent of the grant if the
113.29equipment is removed from the taconite tax relief area within 12 months after receipt of
113.30the money from the fund, declining by ten percent for each of the subsequent nine years
113.31during which the equipment remains within the taconite tax relief area. If a taconite
113.32production facility is sold after operations at the facility had ceased, any money remaining
113.33in the fund for the former producer may be released to the purchaser of the facility on
113.34the terms otherwise applicable to the former producer under this section. If a producer
113.35fails to provide matching funds for a proposed expenditure within six months after the
113.36commissioner approves release of the funds, the funds are available for release to another
114.1producer in proportion to the distribution provided and under the conditions of this section.
114.2Any portion of the fund which is not released by the commissioner within two years of its
114.3deposit in the fund shall be divided between the taconite environmental protection fund
114.4created in section 298.223 and the Douglas J. Johnson economic protection trust fund
114.5created in section 298.292 for placement in their respective special accounts. Two-thirds
114.6of the unreleased funds shall be distributed to the taconite environmental protection fund
114.7and one-third to the Douglas J. Johnson economic protection trust fund.
114.8EFFECTIVE DATE.This section is effective for proposals for expenditures of
114.9money from the fund the day following final enactment.

114.10    Sec. 5. IRRRB BUILDING.
114.11    The Iron Range Resources and Rehabilitation (IRRRB) office building in Eveleth,
114.12Minnesota, is designated and named the Joe Begich Building."
114.13Amend the title accordingly