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 $215,412,000.

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 $36,175,000 in FY 2012, and $36,715,000 in FY 2013 to the Department of Employment and Economic Development. Of that amount, $35,475,000 in FY 2012, and $35,475,000 in FY 2013 are appropriated from the General Fund; $6,147,000 in FY 2012, and $6,147,000 in FY 2013 are appropriated from the workforce development fund; and $700,000 is appropriated each year of the biennium from the Remediation Fund.

Subdivision 2 (Business and Community Development) appropriates $6,491,000 each year of the biennium for business and community development. Appropriates money for the following purposes:

a. business and community development activities;

b. and c. contaminated site cleanup and development grants; and

d. business development competitive grant pilot program.

Subdivision 3 (Workforce Development) appropriates $34,812,000 each year of the biennium for workforce development.  Appropriates money for the following purposes:

a. job skills partnership program activities;

b. competitive grant program;

c. vocational rehabilitation;

d. state services for the blind activities;

e. centers for independent living;

f. extended employment services for  persons with severe disabilities;

g. employment support services to persons with mental illness; and

h. contingent account.

Subdivision 4 (State-Funded Administration) appropriates $1,019,000 each year of the biennium for state-funded administration.

Subdivision 5 (Transfers In) transfers $45 million from the Douglas J. Johnson economic protection trust fund to the general fund.  Provides a repayment schedule from the general fund to the trust fund, including interest and other earnings.  Transfers $4,608,000 each year of the biennium from the workforce development fund to the general fund.

Section 4 [Science and Technology Authority] appropriates $107,000 each year of the biennium to the Science and Technology Authority.

Section 5 [Housing Finance Agency], subdivision 1 (Total Appropriation), appropriates $37,595,000 each year of the biennium to the Housing Finance Agency.

Subdivision 2 (Challenge Program) appropriates $7,159,000 each year of the biennium to the Economic Development and Housing Challenge Program.  Of that amount, $1,395,000 for the first eight months of each year of the biennium, is for American Indian housing projects.

Subdivision 3 (Housing Trust Fund) appropriates $8,555,000 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 $858,000 each year of the biennium to the Home Ownership Assistance Program.

Subdivision 7 (Affordable Rental Investment Fund) appropriates $7,319,000 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 $2,633,000 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 $217,000 each year of the biennium for nonprofit capacity-building grants.

Section 6 [Labor and Industry], subdivision 1 (Total Appropriation), appropriates $21,688,000 each year of the biennium to the Department of Labor and Industry. Of that amount $817,000 is appropriated each year of the biennium from the General Fund and $20,871,000 is appropriated each year from the Workers' Compensation 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 $817,000 each year of the biennium for labor standards and apprenticeship.

Subdivision 4 (General Support) appropriates $6.039 million each year of the biennium for general support.

Section 7 [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 8 [Workers' Compensation Court of Appeals] appropriates $1,703,000 each year of the biennium to the Workers' Compensation Court of Appeals.

Section 9 [Board of Accountancy] appropriates $630,000 in FY 2010, and $480,000 in FY 2013 to the Board of Accountancy.

Section 10 [Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design] appropriates $924,000 in FY 2010, and $774,000 in FY 2013 to the Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design.

Section 11 [Board of Cosmetologist Examiners] appropriates $1,046,000 each year of the biennium to the Board of Cosmetologist Examiners.

Section 12 [Board of Barber Examiners] appropriates $257,000 each year of the biennium to the Board of Barber Examiners.

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 the commissioner to retain up to five percent of the amount granted for administration and monitoring costs of the pass-through grants.

Section 2, subdivision 1 (Definitions) adds a definition for “intern” for purposes of the angel tax credit program.  This is from S.F. No. 790 (Metzen).

Section 3, subdivision 2 (Certification of qualified small businesses) provides language to allow interns employed by a qualified small business be paid at least 175 percent of the federal minimum wage.  This is a lower minimum wage compared to the statute’s employee minimum wage of 175 percent of poverty level for a family of four.  Provides a proportional reduction for part-time interns for this wage requirement.

Raises the threshold for previous receipt of private equity investment for a qualified small business for certification from $2 million to $4 million to make the amount consistent for the program.  This is from S.F. No. 790 (Metzen).

Section 4, subdivision 4 (Certification of qualified funds) amends language to require that at least three natural persons are investors in the certified business and seek a tax credit allocation.  Currently, investors who have members that are not natural persons are disqualified from the program even if the member was not going to invest in the business.  This is from S.F. No. 790 (Metzen).

Section 5, subdivision 1 (Partnership program) establishes a competitive grant program for educational institutions and nonprofit training organizations.  Requires consideration of training completion, job placement, and retention levels when making grants.  Limits grants to $1 million per institution or organization per year.  Effective for grants made on or after July 1, 2011.

Section 6 [Fee schedule] makes changes to the fee schedule for professional licenses issued by the Combative Sports Commission. 

Section 7, 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.  This is from S.F. No. 634 (DeKruif).

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.  This is from S.F. No. 634 (DeKruif).

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.  This is from S.F. No. 634 (DeKruif).

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 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 18, subdivision 1b (Employment of master plumber or restricted master plumber) changes term "responsible person" to "responsible individual."

Section 19, 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 20, 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 21, 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 22, subdivision 3 (Registration, rules, applications, renewals, and fees) clarifies that the statute is referring to the Plumbing Board.

Section 23, 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 24 and 25 remove obsolete references to “installer.”

Sections 26 to 29 clarify definitions. 

Sections 30 to 45 make technical changes to provide for consistent continuing education requirements by nondepartmental entities for trades regulated under chapter 326B.

Section 47 [Signed contractor bond] aligns with fee schedule enacted in 2010.

Section 48, 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.  This is from S.F. No. 634 (DeKruif).

Section 49, 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.  This is from S.F. No. 634 (DeKruif).

Section 50, 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.  This is from S.F. No. 225 (Pederson).

Section 51, 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.  This is from S.F. No. 225 (Pederson).

Section 52, 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.  This is from S.F. No. 225 (Pederson).

Section 53, subdivision 1 (Inspections) allows municipalities that have adopted the State Building Code to provide inspection services in noncode areas.  This is from S.F. No. 225 (Pederson).

Section 54, 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.  This is from S.F. No. 225 (Pederson).

Section 55 [Revisor’s instruction] provides for renumbering of statutes.

Section 56 [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.

CDF/syl