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S.F. No. 2 - Jobs, Economic Development, and Housing (First Special Session - 2011)
 
Author: Senator Geoff Michel
 
Prepared By: Carlon D. Fontaine, Senate Counsel (651/296-4395)
 
Date: July 19, 2011



 
Article 1
Jobs and Economic Development Appropriations
 
Section 1 [Jobs and Economic Development Appropriations] provides the summary of appropriations, by fund, in jobs and economic development for FY 2012 and FY 2013. The total appropriation for the biennium is $250,828,000.
 
Section 2 [Jobs and Economic Development] describes the layout and application of the article.
 
Section 3 [Department of Employment and Economic Development], subdivision 1 (Total Appropriation), appropriates $61,198,000 in FY 2012, and $56,198,000 in FY 2013 to the Department of Employment and Economic Development. Of that amount, $44,076,000 in FY 2012, and $39,076,000 in FY 2013 are appropriated from the General Fund and $700,000 is appropriated each year of the biennium from the Remediation Fund.
 
Subdivision 2 (Business and Community Development) appropriates $13,281,000 in FY 2012, and $8,281,000 in FY 2013, for business and community development. Appropriates money for the following purposes: business and community development activities; contaminated site cleanup and development grants; and for a business development competitive grant pilot program.
 
For FY 2012, makes direct appropriations to the following organizations:
 
-WomenVenture;
-Metropolitan Economic Development Association;
-BioBusiness Alliance;
-Minnesota Inventors Congress;
-Rural Policy and Development Center;
-Direct professional business assistance for entrepreneur and small business development in certain counties; and
- Advocating Change Together.
 
Business Development Competitive Grant Pilot Program: for FY 2013, $757,000 from the general fund and $339,000 from the workforce development fund is for a competitive grant pilot program for business development assistance and services, including: minority business development, women’s business development, rural business development, bioscience business development, entrepreneur development, and services to inventors. Requires the DEED commissioner to report on the business development competitive grant program. 
 
Appropriates money for the following:
 
Minnesota Trade Office: appropriates $1,492,000 each year from the general fund for the Minnesota Trade Office.
 
Minnesota investment fund (MIF): appropriates $3,000,000 in FY 2012 from the general fund for MIF.
 
Redevelopment: appropriates $2,000,000 in FY 2012 from the general fund for the redevelopment program.
 
Enterprise Minnesota, Inc.: appropriates $250,000 each year from the general fund to Enterprise Minnesota, Inc. for the small business growth acceleration program. 
 
Subdivision 3 (Workforce Development) appropriates $28,665,000 each year of the biennium for workforce development. Creates two competitive grant programs. Appropriates money each year of the biennium for the following purposes:
 
-job skills partnership program activities;
-vocational rehabilitation;
-state services for the blind activities;
-centers for independent living;
-extended employment services for persons with severe disabilities;
-employment support services to persons with mental illness;
-Minnesota Youth Program; and
-Youthbuild Program.

Appropriates money in FY 2012 to the following:
 
-Twin Cities RISE!
-Northern Connections
-Rise, Inc.
-Lifetrack Resources
-Opportunities Industrialization Center programs
-Minnesota Diversified Industries, Inc.
 
Adult Workforce Development Competitive Grant Pilot Program: for FY 2013, $830,000 from the general fund and $1,905,000 from the workforce development fund is for a competitive grant pilot program for adult workforce development activities, including: job training, job search, job placement, preemployment and job readiness skills, progressive development and employment opportunities for people with disabilities, employment services targeted to people who are deaf or heard of hearing, and transition to work form public assistance. Requires the DEED commissioner to report on the adult workforce development competitive grant program. 
 
Appropriates money in FY 2012 to the following:
 
-Minneapolis summer youth employment program
-Minneapolis learn-to-earn summer youth employment program
-Minnesota Alliance of Boys and Girls Clubs
-Summer youth employment in St. Paul
-Deaf/Heard of Hearing interpreters
 
Youth Workforce Development Competitive Grant Pilot Program: for FY 2013, appropriates $2,848,000 from the workforce development fund for a competitive grant pilot program for youth workforce development and training activities. Requires the DEED commissioner to report on the youth workforce development competitive grant program. 
 
Subdivision 4 (State-Funded Administration) appropriates $1,019,000 each year of the biennium for state-funded administration.
 
Subdivision 5 (Competitive Grant Limitations) provides that organizations receiving direct appropriations are not eligible to participate in the competitive grant pilot programs in the years the direct appropriations are received.
 
Section 4 [Housing Finance Agency], subdivision 1 (Total Appropriation), appropriates $38,048,000 each year of the biennium to the Housing Finance Agency.
 
Subdivision 2 (Challenge Program) appropriates $6,955,000 each year of the biennium to the Economic Development and Housing Challenge Program. Of that amount, $1,208,000 for the first eight months of each year of the biennium, is for American Indian housing projects.
 
Subdivision 3 (Housing Trust Fund) appropriates $9,555,000 each year of the biennium for deposit in the Housing Trust Fund Account.
 
Subdivision 4 (Rental Assistance for Mentally Ill) appropriates $2,638,000 each year of the biennium to the Rental Housing Assistance Program for persons who have mental illness or families with an adult member who has a mental illness.
 
Subdivision 5 (Family Homeless Prevention) appropriates $7,465,000 each year of the biennium to the Family Homeless Prevention and Assistance Program.
 
Subdivision 6 (Home Ownership Assistance Fund) appropriates $797,000 each year of the biennium to the Home Ownership Assistance Program.
 
Subdivision 7 (Affordable Rental Investment Fund) appropriates $7,313,000 each year of the biennium to the Affordable Rental Investment Fund to finance the acquisition, rehabilitation, and debt restructuring of federally assisted rental property and for making equity take-out loans. The appropriation may also be used to finance the acquisition, rehabilitation, and debt restructuring of existing supportive housing properties.
 
Subdivision 8 (Housing Rehabilitation) appropriates $2,449,000 each year of the biennium to the Housing Rehabilitation Program.
 
Subdivision 9 (Homeownership Education, Counseling, and Training) appropriates $751,000 each year of the biennium to the Homeownership Education, Counseling, and Training Program.
 
Subdivision 10 (Capacity-Building Grants) appropriates $125,000 each year of the biennium for nonprofit capacity-building grants.
 
Section 6 [Labor and Industry], subdivision 1 (Total Appropriation), appropriates $22,717,000 each year of the biennium to the Department of Labor and Industry. Of that amount $817,000 is appropriated each year from the General Fund; $20,871,000 is appropriated each year from the Workers' Compensation Fund; and $1,029,000 each year from the Workforce Development Fund.
 
Subdivision 2 (Workers' Compensation) appropriates $14,832,000 each year of the biennium for the Workers' Compensation Program.
 
Subdivision 3 (Labor Standards and Apprenticeship) appropriates $1,846,000 each year of the biennium for labor standards and apprenticeship.
 
Subdivision 4 (General Support) appropriates $6.039 million each year of the biennium from the workers’ compensation fund for general support.
 
Section 6 [Bureau of Mediation Services], subdivision 1 (Total Appropriation), appropriates $1,584,000 each year of the biennium to the Bureau of Mediation Services.
 
Subdivision 2 (Mediation Services) appropriates $1,516,000 each year of the biennium for mediation services.
 
Subdivision 3 (Labor Management Cooperation Grants) appropriates $68,000 each year of the biennium for grants to area labor-management committees.
 
Section 7 [Workers' Compensation Court of Appeals] appropriates $1,703,000 each year of the biennium to the Workers' Compensation Court of Appeals.
 
Section 8 [Board of Accountancy] appropriates $480,000 each year of the biennium to the Board of Accountancy.
 
Section 9 [Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design] appropriates $774,000 each year of the biennium to the Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design.
 
Section 10 [Board of Cosmetologist Examiners] appropriates $1,046,000 each year of the biennium to the Board of Cosmetologist Examiners.
 
Section 11 [Board of Barber Examiners] appropriates $257,000 each year of the biennium to the Board of Barber Examiners.
 
Section 12 [Science and Technology Authority] appropriates $107,000 each year of the biennium to the Science and Technology Authority.
 
Section 13 [Transfers] makes transfers to the general fund from the unemployment insurance state administration account at the closing of FY 2011, FY 2012, and FY 2013, and from the contingent account before the closing of each fiscal year. 
 
Article 2
Miscellaneous Economic Development Provisions
 
Section 1, subdivision 7 (Monitoring pass-through grant recipients) requires DEED to monitor activities and outcomes of the programs funded by the legislature and administered by DEED on a pass-through basis. Allows commissioner to retain up to 5% of the amount granted for administration and monitoring costs of the pass-through grants. 
 
Section 2, subdivision 1 (Grant account) in addition to the special revenue fund, allows the contaminated site cleanup and development grant account to be in the general fund, petroleum tank fund, and the remediation fund.
 
Section 3 (Small Business Loan Guarantee Program) establishes a small business loan guarantee program to be administered by DEED.
 
Section 4, subdivision 4 (Evaluation) allows information for the extended employment program to be submitted to DEED by service providers on or before October 31 each year.
 
Section 5 [Fee schedule] makes changes to the fee schedule for professional licenses issued by the Combative Sports Commission. 
 
Section 6, section 18 [Combative sports commission] deletes language relating to the expiration of the Combative Sports Commission. The commission will be now be self-sufficient and no longer receive general funds.
 
Article 3
Labor and Industry
 
Section 1, subdivision 5 (Application) makes changes to provisions related to independent contractor exemption certificates. Removes ability for individuals to simultaneously submit residential building contractor or residential remodeler licenses with their independent contractor exemption certificate for a single application fee of $150. Allows the commissioner to file and enforce unpaid portions of penalties issued to individuals with independent contractor exemption certificates as a judgment in district court without notice or proceedings.
Section 2, subdivision 6 (Enforcement) makes a technical change to the enforcement provision of the safe patient handling program by including a statutory reference to the commissioner’s ability to issue citations.
 
Section 3, subdivision 2 (Deposits) clarifies that DOLI fees are deposited in the construction code fund.
 
Section 4 [Definitions] provides a new definition for qualifying individual as the person responsible for person responsible for obtaining continuing education on behalf of contractors, remodelers, or roofers.
 
Section 5 [Continuing education] clarifies continuing education requirements applicable to seminars offered by the department; adds refund requirement for cancelled seminars.
 
Section 6 [Continuing education; nondepartment seminars]creates a new section applicable to seminars offered by an entity other than the department.
 
Section 7, subdivision 8 [Effective date of rules] changes effective date for State Building Code rule adoption or amendments from 180 days after filing with the secretary of state to 180 days after publication of the notice of adoption in the State Register.
 
Section 8, subdivision 1 (Computation) extends the $5 permit surcharge through June 30, 2013.
 
Section 9, subdivision 1b (Backflow prevention rebuilder) provides a definition of backflow prevention rebuilder.
 
Section 10, subdivision 1c (Backflow prevention tester) provides definition of a backflow prevention tester.
 
Sections 11 to 13 make changes to the term “responsible license plumber” to “responsible individual.” This change is necessary for clarification, because only certain plumbers can be the responsible individual for a contractor.
 
Section 14, subdivision 2 (Powers; duties; administrative support) modifies powers and duties of the plumbing board to include: the authority to adopt rules regarding licensure of restricted plumbing contractors; certification of and continuing education for persons engaged in medical gas system installation, maintenance or repair; and certification of and continuing education for backflow prevention rebuilders and testers. Authorizes the board to recommend registration fees.
 
Section 15 [Reduced pressure backflow prevention rebuilders and testers]requires backflow prevention rebuilder and backflow prevention tester certificates for testing, maintenance, repair, or rebuilding of reduced pressure zone backflow prevention assemblies. Prohibits anyone from performing or offering to perform this work unless they have a plumbing contractor license. Provides that certificates are good for two years and requires the board to adopt expedited rulemaking that expires December 31, 2014. Recognizes that certificate programs that require at least 16 contact hours and include passage of an exam are allowed until the board adopts rules.
 
Section 16 [Medical gas systems]aligns medical gas certification with the fee schedule enacted in 2010 and the two-year licensing cycle. Clarifies that persons who work with medical gas systems must hold a plumbing contractor license. Provides exemptions for individuals meeting the requirements of the American Society of Sanitary Engineering (ASSE) Standard 6010. Changes the term "person" to “individual."
 
Section 17, subdivision 1 (License required) makes a technical correction to an internal reference. 
 
Section 18, subdivision 1a (Exemptions from licensing)changes term "responsible person" to "responsible individual" and clarifies that those who do pipe laying do not need a plumbing contractor license if they have posted a bond and maintain the required liability insurance.
 
Section 19, subdivision 1b (Employment of master plumber or restricted master plumber) changes term "responsible person" to "responsible individual."
 
Section 20, subdivision 2 (Bond; insurance)clarifies that persons that perform sewer or water service installation do not need a contractors license; they must meet the same bond and liability insurance requirements as a plumbing contractor.
 
Section 21, subdivision 20 (Bond insurance exemption)provides that an individual-who is either a licensed plumber or who has completed approved pipe laying training-employed by a person in compliance with bond and insurance requirements, does not personally need to meet those requirements.
 
Section 22, subdivision 1 (Registration; supervision; records) clarifies that individuals that have completed pipe laying training do not have to register as unlicensed persons. Provides clarification of registered unlicensed individuals.
 
Section 23, subdivision 3 (Registration, rules, applications, renewals, and fees) clarifies that the statute is referring to the Plumbing Board.
 
Section 24, subdivision 1 (Application, examination, and license fees) provides consistency with definitions of "person" and "individual." Clarifies that persons that perform sewer or water installation that do not have a contractor's license must pay a bond filing fee consistent with that for filing a mechanical bond.
 
Sections 25 and 26 remove obsolete references to “installer.”
 
Sections 27 to 30 clarify definitions. 
 
Sections 31 to 47make technical changes to provide for consistent continuing education requirements by nondepartmental entities for trades regulated under chapter 326B.
 
Section 48 [Signed contractor bond] aligns with fee schedule enacted in 2010.
 
Section 49, subdivision 6 [Verified application] clarifies that when making an application to the contractor recovery fund, the application may not include any costs not related to the value difference between what was contracted for and what was provided in the actual and direct out-of-pocket loss calculation.
 
Section 50, subdivision 8 [Administrative hearing] allows the commissioner, owner, or lessee to seek judicial review of the ALJ’s findings of fact, conclusions of law, and order in an administrative hearing concerning compensation from the contractor recovery fund.
 
Section 51, subdivision 1a (Requirement; Used manufactured homes) requires a licensed or limited retailer to retain at least one copy of the Notice of Compliance form provided in this subdivision when there are sales or transfers of ownership of a used manufactured home.
 
Section 52, subdivision 1b (Alternative design plan) allows an alternative frost-free design plan to be submitted to local building officials or third-party inspectors, in addition to DOLI, for approval. Allows compliance with the manufacturer’s installation manual as another option for purposes of being issued a permit for an alternative frost-free design slab.
 
Section 53, subdivision 1e (Reinstallation requirements for single-section used manufactured homes) removes references to “single-section” to apply reinstallation requirements to all used manufactured homes.  Removes reference to “department” to reflect changes made in section 2 of the bill relating to allowing additional permitting authorities.
 
Section 54, subdivision 1f (Notice requirement) removes references to “single-section” used manufactured homes.
 
Section 55, subdivision 7 (Enforcement) allows municipalities that have adopted the State Building Code to provide inspection services in noncode areas. 
 
Section 56, subdivision 2 (Fees) provides that inspection fees in noncode areas must be the same as in code areas.  Allows third-party vendors to charge their usual charge for inspections. 
 
Section 57, subdivision 12 (Payment to the Minnesota manufactured home relocation trust fund) establishes a $1 million cap on manufactured home park owner payments into the manufactured home relocation trust fund. 
 
Section 58 [Revisor’s instruction] provides for renumbering of statutes.
 
Section 59 [Repealer] repeals sections 326B82, subdivisions 4 ("coordinator" replaced with "sponsor" and defined elsewhere); subdivision 6, obsolete definition of “licensee;” and section 326B.821, subdivision 3, specific continuing education requirement that is now dealt with generically.
 
Article 4
Effective Date
 
Section 1 (Effective date; relationship to other appropriations) provides that the act is effective retroactively from July 1, 2011, and supersedes funding authorized by order of the Second Judicial District Court.
 
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