HF 5217

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/24/2024 02:10pm

A bill for an act
relating to labor and industry; making supplemental appropriation changes to labor
provisions; modifying combative sports regulations, construction codes and
licensing, Bureau of Mediation provisions, public employee labor relations
provisions, University of Minnesota collective bargaining units, miscellaneous
labor provisions, broadband and pipeline safety, employee misclassification, and
minors appearing in internet content; authorizing rulemaking; appropriating money;
amending Minnesota Statutes 2022, sections 116J.395, subdivision 6; 177.27,
subdivision 3; 179A.11, subdivisions 1, 2, by adding a subdivision; 179A.12,
subdivision 5; 181.171, subdivision 1; 181.722; 181.723; 181.960, subdivision 3;
181A.03, by adding subdivisions; 216B.17, by adding a subdivision; 270B.14,
subdivision 17, by adding a subdivision; 299J.01; 299J.02, by adding a subdivision;
299J.04, subdivision 2; 299J.11; 326B.081, subdivisions 3, 6, 8; 326B.082,
subdivisions 1, 2, 4, 6, 7, 10, 11, 13, by adding a subdivision; 326B.701; 326B.802,
subdivision 13; 326B.89, subdivisions 1, 5; 341.28, by adding a subdivision;
341.29; 626.892, subdivision 10; Minnesota Statutes 2023 Supplement, sections
116J.871, subdivision 1, as amended; 177.27, subdivisions 1, 2, 4, 7; 177.42,
subdivision 2; 179A.03, subdivision 14; 179A.041, subdivision 10; 179A.06,
subdivision 6; 179A.07, subdivisions 8, 9; 179A.10, subdivision 2; 179A.12,
subdivisions 2a, 6, 11; 326B.106, subdivision 1; 326B.802, subdivision 15; 341.25;
341.28, subdivision 5; 341.30, subdivision 4; 341.321; 341.33, by adding a
subdivision; 341.355; Laws 2023, chapter 53, article 19, sections 2, subdivisions
1, 3, 5; 4; proposing coding for new law in Minnesota Statutes, chapters 116J;
181; 181A; repealing Minnesota Statutes 2022, sections 116J.398; 179.81; 179.82;
179.83, subdivision 1; 179.84, subdivision 1; 179.85; Minnesota Rules, parts
5520.0100; 5520.0110; 5520.0120; 5520.0200; 5520.0250; 5520.0300; 5520.0500;
5520.0520; 5520.0540; 5520.0560; 5520.0600; 5520.0620; 5520.0700; 5520.0710;
5520.0800.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin (a) The sums shown in the columns under "Appropriations" are added to the
appropriations in Laws 2023, chapter 53, or other law to the specified agency. The
appropriations are from the general fund, or another named fund, and are available for the
fiscal years indicated for each purpose. The figures "2024" and "2025" used in this article
mean that the appropriations listed under them are available for the fiscal year ending June
30, 2024, or June 30, 2025, respectively. "The first year" is fiscal year 2024. "The second
year" is fiscal year 2025. "The biennium" is fiscal years 2024 and 2025.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2024 regular or
special legislative session, the appropriation must be given effect only once.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF HEALTH new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 174,000 new text end

new text begin $174,000 the second year is for technical
assistance for rulemaking for acceptable blood
lead levels for workers. This is a onetime
appropriation and is available until June 30,
2026.
new text end

Sec. 3. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 9,000,000 new text end

new text begin $9,000,000 the second year is for a grant to
Tending the Soil, to design, redesign, renovate,
construct, furnish, and equip the Rise Up
Center, a building located in Minneapolis, that
will house a workforce development and job
training center, administrative offices, and a
public gathering space.
new text end

Sec. 4.

Laws 2023, chapter 53, article 19, section 2, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$

47,710,000

$

deleted text begin 44,044,000 deleted text end new text begin 44,720,000 new text end

Appropriations by Fund
	2024	2025
General	7,200,000	deleted text begin 4,889,000 deleted text end new text begin 5,286,000 new text end
Workers' Compensation	30,599,000	deleted text begin 32,390,000 deleted text end new text begin 32,669,000 new text end
Workforce Development	9,911,000	6,765,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions. The general fund base for this
appropriation is deleted text begin $4,936,000 deleted text end new text begin $5,006,000 new text end in
fiscal year 2026 and deleted text begin $4,958,000 deleted text end new text begin $4,959,000 new text end
in fiscal year 2027 and each year thereafter.
The workers compensation fund base is
deleted text begin $32,749,000 deleted text end new text begin $32,892,000 new text end in fiscal year 2026
and $32,458,000 in fiscal year 2027 and each
year thereafter. The workforce development
fund base is $6,765,000 in fiscal year 2026
and each year thereafter.

Sec. 5.

Laws 2023, chapter 53, article 19, section 2, subdivision 3, is amended to read:

Subd. 3. Labor Standards

6,520,000

deleted text begin 6,270,000 deleted text end new text begin 6,667,000 new text end

Appropriations by Fund
General	4,957,000	deleted text begin 4,635,000 deleted text end new text begin 5,032,000 new text end
Workforce Development	1,563,000	1,635,000

The general fund base for this appropriation
is deleted text begin $4,682,000 deleted text end new text begin $4,752,000 new text end in fiscal year 2026
and deleted text begin $4,704,000 deleted text end new text begin $4,705,000 new text end in fiscal year 2027
and each year thereafter.

(a) $2,046,000 each year is for wage theft
prevention.

(b) $1,563,000 the first year and $1,635,000
the second year are from the workforce
development fund for prevailing wage
enforcement.

(c) $134,000 the first year and $134,000 the
second year are for outreach and enforcement
efforts related to changes to the nursing
mothers, lactating employees, and pregnancy
accommodations law.

(d) $661,000 the first year and $357,000 the
second year are to perform work for the
Nursing Home Workforce Standards Board.
The base for this appropriation is $404,000 in
fiscal year 2026 and $357,000 in fiscal year
2027.

(e) $225,000 the first year and $169,000 the
second year are for the purposes of the Safe
Workplaces for Meat and Poultry Processing
Workers Act.

(f) $27,000 the first year is for the creation
and distribution of a veterans' benefits and
services poster under Minnesota Statutes,
section 181.536.

new text begin (g) $141,000 the second year is to inform and
educate employers relating to Minnesota
Statutes, section 181.960. This is a onetime
appropriation.
new text end

new text begin (h) $200,000 the second year is for education
and training related to employee
misclassification. This is a onetime
appropriation and is available until June 30,
2026.
new text end

Sec. 6.

Laws 2023, chapter 53, article 19, section 2, subdivision 5, is amended to read:

Subd. 5. Workplace Safety new text begin new text end

8,644,000

deleted text begin 7,559,000 deleted text end new text begin 7,838,000 new text end

Appropriations by Fund
General	2,000,000	-0-
Workers' Compensation	6,644,000	deleted text begin 7,559,000 deleted text end new text begin 7,838,000 new text end

The workers compensation fund base for this
appropriation is deleted text begin $7,918,000 deleted text end new text begin $8,061,000 new text end in
fiscal year 2026 and $7,627,000 in fiscal year
2027 and each year thereafter.

$2,000,000 the first year is for the ergonomics
safety grant program. This appropriation is
available until June 30, 2026. This is a onetime
appropriation.

Sec. 7.

Laws 2023, chapter 53, article 19, section 4, is amended to read:

Sec. 4. BUREAU OF MEDIATION SERVICES

$

3,707,000

$

3,789,000

deleted text begin (a) deleted text end $750,000 each year is for purposes of the
Public Employment Relations Board under
Minnesota Statutes, section 179A.041.

deleted text begin (b) $68,000 each year is for grants to area
labor management committees. Grants may
be awarded for a 12-month period beginning
July 1 each year. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.
deleted text end

deleted text begin (c) $47,000 each year is for rulemaking,
staffing, and other costs associated with peace
officer grievance procedures.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2023.
new text end

ARTICLE 2

COMBATIVE SPORTS

Section 1.

Minnesota Statutes 2022, section 326B.89, subdivision 5, is amended to read:

Subd. 5.

Payment limitations.

The commissioner shall not pay compensation from the
fund to an owner or a lessee in an amount greater than deleted text begin $75,000 deleted text end new text begin $100,000 new text end per licensee. The
commissioner shall not pay compensation from the fund to owners and lessees in an amount
that totals more than $550,000 per licensee. The commissioner shall only pay compensation
from the fund for a final judgment that is based on a contract directly between the licensee
and the homeowner or lessee that was entered into prior to the cause of action and that
requires licensure as a residential building contractor or residential remodeler.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 341.25, is amended to read:

341.25 RULES.

(a) The commissioner may adopt rules that include standards for the physical examination
and condition of combatants and referees.

(b) The commissioner may adopt other rules necessary to carry out the purposes of this
chapter, including, but not limited to, the conduct of all combative sport contests and their
manner, supervision, time, and place.

(c) The most recent version of the Unified Rules of Mixed Martial Arts, as promulgated
by the Association of Boxing Commissions, is incorporated by reference and made a part
of this chapter except as qualified by this chapter and Minnesota Rules, chapter 2202. In
the event of a conflict between this chapter and the Unified Rules, this chapter must govern.

(d) The most recent version of the Unified Rules of Boxing, as promulgated by the
Association of Boxing Commissions, is incorporated by reference and made a part of this
chapter except as qualified by this chapter and Minnesota Rules, chapter 2201. In the event
of a conflict between this chapter and the Unified Rules, this chapter must govern.

(e) The most recent version of the Unified Rules of Kickboxing new text begin and Unified Rules of
Muay Thai new text end , as promulgated by the Association of Boxing Commissions, deleted text begin is deleted text end new text begin are new text end incorporated
by reference and made a part of this chapter except as qualified by this chapter and any
applicable Minnesota Rules. In the event of a conflict between this chapter and deleted text begin the Unified
Rules deleted text end new text begin those rules new text end , this chapter must govern. new text begin If a promoter seeks to hold a kickboxing event
governed by a different set of kickboxing rules, the promoter must send the commissioner
a copy of the rules under which the proposed bouts will be conducted at least 45 days before
the event. The commissioner may approve or deny the use of the alternative rules at the
commissioner's discretion. If the alternative rules are approved for an event, this chapter
and any applicable Minnesota Rules, except of those incorporating the Unified Rules of
Kickboxing and Unified Rules of Muay Thai, must govern if there is a conflict between the
rules and Minnesota law.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 341.28, subdivision 5, is amended
to read:

Subd. 5.

Regulatory authority; martial arts and amateur boxing.

(a) Unless this
chapter specifically states otherwise, contests or exhibitions for martial arts and amateur
boxing are exempt from the requirements of this chapter and officials at these events are
not required to be licensed under this chapter.

(b) Martial arts and amateur boxing contests, unless subject to the exceptions set forth
in subdivision 6 new text begin or 7 new text end , must be regulated by a nationally recognized organization approved
by the commissioner. The organization must have a set of written standards, procedures, or
rules used to sanction the combative sports it oversees.

(c) Any regulatory body overseeing a martial arts or amateur boxing event must submit
bout results to the commissioner within 72 hours after the event. If the regulatory body
issues suspensions, the regulatory body must submit to the commissioner a list of any
suspensions resulting from the event within 72 hours after the event. Regulatory bodies that
oversee combative sports or martial arts contests under subdivision 6 new text begin or 7 new text end are not subject
to this paragraph.

Sec. 4.

Minnesota Statutes 2022, section 341.28, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Regulatory authority; youth competition. new text end

new text begin Combative sports or martial arts
contests between individuals under the age of 18 years are exempt from the requirements
of this chapter and officials at these events are not required to be licensed under this chapter.
A contest under this subdivision must be regulated by (1) a widely recognized organization
that regularly oversees youth competition, or (2) a local government.
new text end

Sec. 5.

Minnesota Statutes 2022, section 341.29, is amended to read:

341.29 JURISDICTION OF COMMISSIONER.

The commissioner shall:

(1) have sole direction, supervision, regulation, control, and jurisdiction over all
combative sport contests that are held within this state unless a contest is exempt from the
application of this chapter under federal law;

(2) have sole control, authority, and jurisdiction over all licenses required by this chapter;

(3) grant a license to an applicant if, in the judgment of the commissioner, the financial
responsibility, experience, character, and general fitness of the applicant are consistent with
the public interest deleted text begin , convenience, or necessity deleted text end and new text begin in new text end the best interests of combative sports
and conforms with this chapter and the commissioner's rules;

(4) deny, suspend, or revoke a license using the enforcement provisions of section
326B.082, except that the licensing reapplication time frames remain within the sole
discretion of the commissioner; and

(5) serve final nonlicensing orders in performing the duties of this chapter which are
subject to the contested case procedures provided in sections 14.57 to 14.69.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 341.30, subdivision 4, is amended
to read:

Subd. 4.

Prelicensure requirements.

(a) Before the commissioner issues a promoter's
license to an individual, corporation, or other business entity, the applicant shall complete
a licensing application on the Office of Combative Sports website or on forms prescribed
by the commissioner and shall:

(1) show on the licensing application the owner or owners of the applicant entity and
the percentage of interest held by each owner holding a 25 percent or more interest in the
applicant;

(2) provide the commissioner with a copy of the latest financial statement of the applicant;

(3) provide proof, where applicable, of authorization to do business in the state of
Minnesota; and

(4) deposit with the commissioner a surety bond in an amount set by the commissioner,
which must not be less than $10,000. The bond shall be executed in favor of this state and
shall be conditioned on the faithful performance by the promoter of the promoter's obligations
under this chapter and the rules adopted under it.

(b) Before the commissioner issues a license to a combatant, the applicant shall:

(1) submit to the commissioner the results of current medical examinations on forms
prescribed by the commissioner that state that the combatant is cleared to participate in a
combative sport contest. The applicant must undergo and submit the results of the following
medical examinations, which do not exempt a combatant from the requirements in section
341.33:

(i) a physical examination performed by a licensed medical doctor, doctor of osteopathic
medicine, advance practice nurse practitioner, or a physician assistant. Physical examinations
are valid for one year from the date of the exam;

(ii) an ophthalmological examination performed by an ophthalmologist or optometrist
that includes dilation designed to detect any retinal defects or other damage or a condition
of the eye that could be aggravated by combative sports. Ophthalmological examinations
are valid for one year from the date of the exam;

(iii) blood work results for HBsAg (Hepatitis B surface antigen), HCV (Hepatitis C
antibody), and HIV. Blood work results are good for one year from the date blood was
drawn. The commissioner shall not issue a license to an applicant submitting positive test
results for HBsAg, HCV, or HIV; and

(iv) other appropriate neurological or physical examinations before any contest, if the
commissioner determines that the examination is desirable to protect the health of the
combatant;

(2) complete a licensing application on the Office of Combative Sports website or on
forms prescribed by the commissioner; and

(3) provide proof that the applicant is 18 years of age. Acceptable proof is a photo driver's
license, state photo identification card, passport, or birth certificate combined with additional
photo identification.

new text begin (c) Before the commissioner issues an amateur combatant license to an individual, the
applicant must submit proof of qualifications that includes at a minimum: (1) an applicant's
prior bout history and evidence showing that the applicant has completed at least six months
of training in a combative sport; or (2) a letter of recommendation from a coach or trainer.
new text end

new text begin (d) Before the commissioner issues a professional combatant license to an individual,
the applicant must submit proof of qualifications that includes an applicant's prior bout
history showing the applicant has competed in at least four sanctioned combative sports
contests. If the applicant has not competed in at least four sanctioned combative sports
contests, the commissioner may still grant the applicant a license if the applicant provides
evidence demonstrating that the applicant has sufficient skills and experience in combative
sports or martial arts to compete as a professional combatant.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end Before the commissioner issues a license to a referee, judge, or timekeeper, the
applicant must submit proof of qualifications that may include certified training from the
Association of Boxing Commissions, licensure with other regulatory bodies, professional
references, or a log of bouts worked.

deleted text begin (d) deleted text end new text begin (f) new text end Before the commissioner issues a license to a ringside physician, the applicant
must submit proof that they are licensed to practice medicine in the state of Minnesota and
in good standing.

Sec. 7.

Minnesota Statutes 2023 Supplement, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

(a) The fee schedule for professional and amateur licenses issued by the commissioner
is as follows:

(1) referees, $25;

(2) promoters, $700;

(3) judges and knockdown judges, $25;

(4) trainers and seconds, $40;

(5) timekeepers, $25;

(6) professional combatants, $70;

(7) amateur combatants, $35; and

(8) ringside physicians, $25.

All license fees shall be paid no later than the weigh-in prior to the contest. No license may
be issued until all prelicensure requirements in section 341.30 are satisfied and fees are
paid.

(b) A promoter or event organizer of an event regulated by the Department of Labor and
Industry must pay, per event, a combative sport contest fee deleted text begin of deleted text end new text begin .
new text end

new text begin (c) If the promoter sells tickets for the event, the event fee is new text end $1,500 deleted text begin per event deleted text end or four
percent of the gross ticket sales, whichever is greater. The fee must be paid as follows:

(1) $500 at the time the combative sport contest is scheduled new text begin , which is nonrefundable new text end ;

(2) $1,000 at the weigh-in prior to the contest;

(3) if four percent of the gross ticket sales is greater than $1,500, the balance is due to
the commissioner within 14 days of the completed contest; and

(4) the value of all complimentary tickets distributed for an event, to the extent they
exceed five percent of total event attendance, counts toward gross tickets sales for the
purposes of determining a combative sports contest fee. For purposes of this clause, the
lowest advertised ticket price shall be used to calculate the value of complimentary tickets.

new text begin (d) If the promoter does not sell tickets and receives only a flat payment from a venue
to administer the event, the event fee is $1,500 per event or four percent of the flat payment,
whichever is greater. The fee must be paid as follows:
new text end

new text begin (1) $500 at the time the combative sport contest is scheduled, which is nonrefundable;
new text end

new text begin (2) $1,000 at the weigh-in prior to the contest; and
new text end

new text begin (3) if four percent of the flat payment is greater than $1,500, the balance is due to the
commissioner within 14 days of the completed contest.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end All fees and penalties collected by the commissioner must be deposited in the
commissioner account in the special revenue fund.

Sec. 8.

Minnesota Statutes 2023 Supplement, section 341.33, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Medical records. new text end

new text begin The commissioner may, if the commissioner determines that
doing so would be desirable to protect the health of a combatant, provide the combatant's
medical information collected under this chapter to the physician conducting a prebout exam
under this section or to the ringside physician or physicians assigned to the combatant's
combative sports contest.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 341.355, is amended to read:

341.355 CIVIL PENALTIES.

When the commissioner finds that a person has violated one or more provisions of any
statute, rule, or order that the commissioner is empowered to regulate, enforce, or issue, the
commissioner may impose, for each violation, a civil penalty of up to $10,000 for each
violation, or a civil penalty that deprives the person of any economic advantage gained by
the violation, or both. The commissioner may also impose these penalties against a person
who has violated section 341.28, subdivision 5, paragraph (b) or (c) new text begin , or subdivision 7 new text end .

ARTICLE 3

CONSTRUCTION CODES AND LICENSING

Section 1.

Minnesota Statutes 2023 Supplement, section 326B.106, subdivision 1, is
amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections
326B.101 to 326B.194, the commissioner shall by rule and in consultation with the
Construction Codes Advisory Council establish a code of standards for the construction,
reconstruction, alteration, and repair of buildings, governing matters of structural materials,
design and construction, fire protection, health, sanitation, and safety, including design and
construction standards regarding heat loss control, illumination, and climate control. The
code must also include duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension and revocation of certification.
The code must conform insofar as practicable to model building codes generally accepted
and in use throughout the United States, including a code for building conservation. In the
preparation of the code, consideration must be given to the existing statewide specialty
codes presently in use in the state. Model codes with necessary modifications and statewide
specialty codes may be adopted by reference. The code must be based on the application
of scientific principles, approved tests, and professional judgment. To the extent possible,
the code must be adopted in terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of specifications of particular methods
or materials. To that end the code must encourage the use of new methods and new materials.
Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall
administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to
similar buildings without significant modifications including provisions for use of building
systems as specified in the industrial/modular program specified in section 326B.194.
Additional plan review fees associated with similar plans must be based on costs
commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years
thereafter, the commissioner shall review the new model building codes and adopt the model
codes as amended for use in Minnesota, within two years of the published edition date. The
commissioner may adopt amendments to the building codes prior to the adoption of the
new building codes to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. The
commissioner may adopt amendments prior to adoption of the new energy codes, as amended
for use in Minnesota, to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or use of a building.

(e) Beginning in 2024, the commissioner shall act on the new model commercial energy
code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard.
The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent
reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a
baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that
incrementally move toward achieving the 80 percent reduction in annual net energy
consumption. By January 15 of the year following each new code adoption, the commissioner
shall make a report on progress under this section to the legislative committees with
jurisdiction over the energy code.

(f) Nothing in this section shall be interpreted to limit the ability of a public utility to
offer code support programs, or to claim energy savings resulting from such programs,
through its energy conservation and optimization plans approved by the commissioner of
commerce under section 216B.241 or an energy conservation and optimization plan filed
by a consumer-owned utility under section 216B.2403.

new text begin (g) Beginning in 2026, the commissioner shall act on the new model residential energy
code by adopting each new published edition of the International Energy Conservation Code
or a more efficient standard. The residential energy code in effect in 2038 and thereafter
must achieve a 70 percent reduction in annual net energy consumption or greater, using the
2006 International Energy Conservation Code State Level Residential Codes Energy Use
Index for Minnesota, as published by the United States Department of Energy's Building
Energy Codes Program, as a baseline. The commissioner shall adopt residential energy
codes from 2026 to 2038 that incrementally move toward achieving the 70 percent reduction
in annual net energy consumption. By January 15 of the year following each new code
adoption, the commissioner shall submit a report on progress under this section to the
legislative committees with jurisdiction over the energy code.
new text end

Sec. 2.

Minnesota Statutes 2022, section 326B.802, subdivision 13, is amended to read:

Subd. 13.

Residential real estate.

"Residential real estate" means a new or existing
building constructed for habitation by one to four families, and includes detached garages new text begin
and swimming pools new text end .

Sec. 3.

Minnesota Statutes 2023 Supplement, section 326B.802, subdivision 15, is amended
to read:

Subd. 15.

Special skill.

"Special skill" means one of the following eight categories:

(a) Excavation. Excavation includes work in any of the following areas:

(1) excavation;

(2) trenching;

(3) grading; and

(4) site grading.

(b) Masonry and concrete. Masonry and concrete includes work in any of the following
areas:

(1) drain systems;

(2) poured walls;

(3) slabs and poured-in-place footings;

(4) masonry walls;

(5) masonry fireplaces;

(6) masonry veneer; and

(7) water resistance and waterproofing.

(c) Carpentry. Carpentry includes work in any of the following areas:

(1) rough framing;

(2) finish carpentry;

(3) doors, windows, and skylights;

(4) porches and decks, excluding footings;

(5) wood foundations; and

(6) drywall installation, excluding taping and finishing.

(d) Interior finishing. Interior finishing includes work in any of the following areas:

(1) floor covering;

(2) wood floors;

(3) cabinet and counter top installation;

(4) insulation and vapor barriers;

(5) interior or exterior painting;

(6) ceramic, marble, and quarry tile;

(7) ornamental guardrail and installation of prefabricated stairs; and

(8) wallpapering.

(e) Exterior finishing. Exterior finishing includes work in any of the following areas:

(1) siding;

(2) soffit, fascia, and trim;

(3) exterior plaster and stucco;

(4) painting; and

(5) rain carrying systems, including gutters and down spouts.

(f) Drywall and plaster. Drywall and plaster includes work in any of the following
areas:

(1) installation;

(2) taping;

(3) finishing;

(4) interior plaster;

(5) painting; and

(6) wallpapering.

(g) Residential roofing. Residential roofing includes work in any of the following areas:

(1) roof coverings;

(2) roof sheathing;

(3) roof weatherproofing and insulation;

(4) repair of roof support system, but not construction of new roof support system; and

(5) penetration of roof coverings for purposes of attaching a solar photovoltaic system.

(h) General installation specialties. Installation includes work in any of the following
areas:

(1) garage doors and openers;

(2) deleted text begin pools, deleted text end spas deleted text begin , deleted text end and hot tubs;

(3) fireplaces and wood stoves;

(4) asphalt paving and seal coating;

(5) ornamental guardrail and prefabricated stairs; and

(6) assembly of the support system for a solar photovoltaic system.

Sec. 4.

Minnesota Statutes 2022, section 326B.89, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Gross annual receipts" means the total amount derived from residential contracting
or residential remodeling activities, regardless of where the activities are performed, and
must not be reduced by costs of goods sold, expenses, losses, or any other amount.

(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.

(d) "Residential real estate" means a new or existing building constructed for habitation
by one to four families, and includes detached garages intended for storage of vehicles
associated with the residential real estate new text begin , and private swimming pools connected with the
residential real estate, which are controlled and used by the owner or the owner's family or
invited guests and are not used as part of a business new text end .

(e) "Fund" means the contractor recovery fund.

(f) "Owner" when used in connection with real property, means a person who has any
legal or equitable interest in real property and includes a condominium or townhome
association that owns common property located in a condominium building or townhome
building or an associated detached garage. Owner does not include any real estate developer
or any owner using, or intending to use, the property for a business purpose and not as
owner-occupied residential real estate.

(g) "Cycle One" means the time period between July 1 and December 31.

(h) "Cycle Two" means the time period between January 1 and June 30.

ARTICLE 4

BUREAU OF MEDIATION SERVICES

Section 1.

Minnesota Statutes 2022, section 626.892, subdivision 10, is amended to read:

Subd. 10.

Training.

(a) A person appointed to the arbitrator roster under this section
must complete training as required by the commissioner during the person's appointment.
At a minimum, an initial training must include:

(1) at least six hours on the topics of cultural competency, racism, implicit bias, and
recognizing and valuing community diversity and cultural differences; and

(2) at least six hours on topics related to the daily experience of peace officers, which
may include ride-alongs with on-duty officers or other activities that provide exposure to
the environments, choices, and judgments required of officers in the field.

new text begin (b) new text end The commissioner may adopt rules establishing training requirements consistent
with this subdivision.

deleted text begin (b) An arbitrator appointed to the roster of arbitrators in 2020 must complete the required
initial training by July 1, 2021. deleted text end new text begin (c) new text end An arbitrator appointed to the roster of arbitrators after
2020 must complete the required initial training within six months of the arbitrator's
appointment.

deleted text begin (c) deleted text end new text begin (d) The Bureau of Mediation Services must pay for new text end all costs associated with the
required training deleted text begin must be borne by the arbitrator deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 179.81; 179.82; 179.83, subdivision 1; 179.84,
subdivision 1; and 179.85, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 5520.0100; 5520.0110; 5520.0120; 5520.0200; 5520.0250;
5520.0300; 5520.0500; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 5520.0620;
5520.0700; 5520.0710; and 5520.0800, new text end new text begin are repealed.
new text end

ARTICLE 5

PUBLIC EMPLOYMENT LABOR RELATIONS

Section 1.

Minnesota Statutes 2023 Supplement, section 179A.041, subdivision 10, is
amended to read:

Subd. 10.

Open Meeting Law; exceptions.

Chapter 13D does not apply to deleted text begin meetings of
the deleted text end new text begin a new text end board new text begin meeting new text end when deleted text begin it deleted text end new text begin the board new text end is new text begin :
new text end

new text begin (1) new text end deliberating on the merits of new text begin an new text end unfair labor practice deleted text begin charges deleted text end new text begin charge new text end under sections
179.11, 179.12, and 179A.13;

new text begin (2) new text end reviewing a new text begin hearing officer's new text end recommended decision and order deleted text begin of a hearing officer deleted text end
under section 179A.13; or

new text begin (3) new text end reviewing deleted text begin decisions of the commissioner of the Bureau of Mediation Services relating
to deleted text end new text begin a commissioner's decision on an new text end unfair labor deleted text begin practices deleted text end new text begin practice new text end under section 179A.12,
subdivision 11.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 179A.06, subdivision 6, is amended
to read:

Subd. 6.

Payroll deduction, authorization, and remittance.

(a) Public employees deleted text begin have
the right to deleted text end new text begin may new text end request deleted text begin and be allowed deleted text end payroll deduction for the exclusive representative
and deleted text begin the deleted text end new text begin its associated new text end political fund deleted text begin associated with the exclusive representative and registered
pursuant to deleted text end new text begin under new text end section 10A.12. new text begin If there is no exclusive representative, public employees
may request payroll deduction for the employee organization of their choice. A public
employer must provide payroll deduction according to any public employee's request under
this paragraph.
new text end

new text begin (b) new text end A public employer must rely on a certification from deleted text begin any deleted text end new text begin an new text end exclusive representative
requesting remittance of a deduction that the new text begin employee new text end organization has and will maintain
an authorization deleted text begin , deleted text end signed new text begin , either by hand or electronically according to section 325L.02,
paragraph (h), new text end by the public employee from whose salary or wages the deduction is to be
made deleted text begin , which may include an electronic signature by the public employee as defined in
section 325L.02, paragraph (h) deleted text end . An exclusive representative making deleted text begin such deleted text end new text begin a new text end certification
deleted text begin must not be deleted text end new text begin is not new text end required to provide the public employer a copy of the authorization unless
a dispute arises about the new text begin authorization's new text end existence or terms deleted text begin of the authorization deleted text end . deleted text begin The exclusive
representative must indemnify the public employer for any successful claims made by the
employee for unauthorized deductions in reliance on the certification.
deleted text end

deleted text begin (b) deleted text end new text begin (c) new text end A deleted text begin dues deleted text end new text begin payroll new text end deduction authorization deleted text begin remains in effect deleted text end new text begin is effective new text end until the new text begin
exclusive representative notifies the new text end employer deleted text begin receives notice from the exclusive
representative deleted text end that a public employee has changed or canceled deleted text begin their deleted text end new text begin the employee's new text end
authorization in writing in accordance with the terms of the original deleted text begin authorizing document,
and deleted text end new text begin authorization. When determining whether deductions have been properly changed or
canceled, new text end a public employer must rely on information from the exclusive representative
receiving remittance of the deduction deleted text begin regarding whether the deductions have been properly
changed or canceled deleted text end . deleted text begin The exclusive representative must indemnify the public employer,
including any reasonable attorney fees and litigation costs, for any successful claims made
by the employee for unauthorized deductions made in reliance on such information.
deleted text end

deleted text begin (c) deleted text end new text begin (d) new text end Deduction authorization under this section is new text begin :
new text end

new text begin (1) new text end independent from the public employee's membership status in the new text begin employee
new text end organization to which payment is remitted new text begin ; new text end and deleted text begin is
deleted text end

new text begin (2) new text end effective regardless of whether a collective bargaining agreement authorizes the
deduction.

deleted text begin (d) Employers deleted text end new text begin (e) An employer new text end must deleted text begin commence deleted text end new text begin :
new text end

new text begin (1) begin new text end deductions within 30 days deleted text begin of notice of authorization from the deleted text end new text begin after an new text end exclusive
representative new text begin submits a certification under paragraph (b); new text end and deleted text begin must
deleted text end

new text begin (2) new text end remit the deductions to the exclusive representative within 30 days of the deduction.
deleted text begin The failure of an employer to comply with the provisions of this paragraph shall be an unfair
labor practice under section 179A.13, the relief for which shall be reimbursement by the
employer of deductions that should have been made or remitted based on a valid authorization
given by the employee or employees.
deleted text end

deleted text begin (e) In the absence of an exclusive representative, public employees have the right to
request and be allowed payroll deduction for the organization of their choice.
deleted text end

new text begin (f) An exclusive representative must indemnify a public employer:
new text end

new text begin (1) for any successful employee claim for unauthorized employer deductions made by
relying on an exclusive representative's certification under paragraph (b); and
new text end

new text begin (2) for any successful employee claim for unauthorized employer deductions made by
relying on information for changing or canceling deductions under paragraph (c), with
indemnification including any reasonable attorney fees and litigation costs.
new text end

deleted text begin (f) deleted text end new text begin (g) new text end Any dispute under this subdivision must be resolved through an unfair labor
practice proceeding under section 179A.13. new text begin It is an unfair labor practice if an employer fails
to comply with paragraph (e), and the employer must reimburse deductions that should have
been made or remitted based on a valid authorization given by the employee or employees.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 8, is amended
to read:

Subd. 8.

Bargaining unit information.

(a) Within 20 calendar days deleted text begin from the date of
hire of deleted text end new text begin after new text end a bargaining unit employee new text begin is hired new text end , a public employer must provide the
following deleted text begin contact deleted text end information new text begin on the employee new text end to deleted text begin an deleted text end new text begin the unit's new text end exclusive representative in
an Excel file format or other format agreed to by the exclusive representative:

new text begin (1) new text end name;

new text begin (2) new text end job title;

new text begin (3) new text end worksite location, including location deleted text begin within deleted text end new text begin in new text end a facility when appropriate;

new text begin (4) new text end home address;

new text begin (5) new text end work telephone number;

new text begin (6) new text end home and personal cell phone numbers on file with the public employer;

new text begin (7) new text end date of hire; and

new text begin (8) new text end work email address and personal email address on file with the public employer.

(b) Every 120 calendar days deleted text begin beginning on January 1, 2024 deleted text end , a public employer must
provide to deleted text begin an deleted text end new text begin a bargaining unit's new text end exclusive representative in an Excel file or similar format
agreed to by the exclusive representative the deleted text begin following deleted text end information new text begin under paragraph (a) new text end for
all bargaining unit employees deleted text begin : name; job title; worksite location, including location within
a facility when appropriate; home address; work telephone number; home and personal cell
phone numbers on file with the public employer; date of hire; and work email address and
personal email address on file with the public employer deleted text end .

(c) deleted text begin A public employer must notify an exclusive representative within 20 calendar days
of the separation of deleted text end new text begin If a bargaining unit employee separates from new text end employment or deleted text begin transfer deleted text end new text begin
transfers new text end out of deleted text begin the deleted text end new text begin a new text end bargaining unit deleted text begin of a bargaining unit employee deleted text end new text begin , the employee's public
employer must notify the employee's exclusive representative within 20 calendar days after
the separation or transfer new text end .

Sec. 4.

Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 9, is amended
to read:

Subd. 9.

Access.

(a) A public employer must allow an exclusive representative to meet
in person with new text begin a new text end newly hired deleted text begin employees, without charge to the pay or leave time of the
employees, for 30 minutes, deleted text end new text begin employee new text end within 30 calendar days from the date of hire deleted text begin , deleted text end during
new employee orientations or, if the employer does not conduct new employee orientations,
at individual or group meetings. new text begin For an orientation or meeting under this paragraph, an
employer must allow the employee and exclusive representative up to 30 minutes to meet
and must not charge the employee's pay or leave time during the orientation or meeting. An
orientation or meeting may be held virtually or for longer than 30 minutes only by mutual
agreement of the employer and exclusive representative.
new text end

new text begin (b) new text end An exclusive representative deleted text begin shall deleted text end new text begin must new text end receive deleted text begin no less than deleted text end new text begin at least new text end ten days' notice
deleted text begin in advance deleted text end of an orientation, deleted text begin except that deleted text end new text begin but new text end a shorter notice may be provided deleted text begin where deleted text end new text begin if new text end there
is an urgent need critical to the new text begin employer's new text end operations deleted text begin of the public employer deleted text end that was not
reasonably foreseeable. Notice of and attendance at new employee orientations and other
meetings under this paragraph deleted text begin must be deleted text end new text begin and paragraph (a) are new text end limited to new text begin :
new text end

new text begin (1) new text end the public employer deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end the employees deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) new text end the exclusive representative deleted text begin , deleted text end new text begin ; new text end and

new text begin (4) new text end any vendor contracted to provide a service for deleted text begin purposes of deleted text end the meeting. deleted text begin Meetings
may be held virtually or for longer than 30 minutes only by mutual agreement of the public
employer and exclusive representative.
deleted text end

deleted text begin (b) deleted text end new text begin (c) new text end A public employer must allow an exclusive representative to communicate with
bargaining unit members deleted text begin using their employer-issued email addresses regarding deleted text end new text begin by email
on:
new text end

new text begin (1) new text end collective bargaining deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end the administration of collective bargaining agreements deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) new text end the investigation of grievances deleted text begin , deleted text end new text begin and new text end other workplace-related complaints and issues deleted text begin , deleted text end new text begin ; new text end
and

new text begin (4) new text end internal matters involving the governance or business of the exclusive representative deleted text begin ,
consistent with the employer's generally applicable technology use policies deleted text end .

new text begin (d) An exclusive representative may communicate with bargaining unit members under
paragraph (c) via the members' employer-issued email addresses, but the communication
must be consistent with the employer's generally applicable technology use policies.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end A public employer must allow an exclusive representative to meet with bargaining
unit members in facilities owned or leased by the public employer deleted text begin regarding deleted text end new text begin to communicate
on:
new text end

new text begin (1) new text end collective bargaining deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end the administration of collective bargaining agreements deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) the investigation of new text end grievances and other workplace-related complaints and issues deleted text begin , deleted text end new text begin ; new text end
and

new text begin (4) new text end internal matters involving the governance or business of the exclusive representative deleted text begin ,
provided the use does not interfere with governmental operations and the exclusive
representative complies with worksite security protocols established by the public employer deleted text end .

new text begin (f) The following applies for a meeting under paragraph (e):
new text end

new text begin (1) a meeting cannot interfere with government operations;
new text end

new text begin (2) the exclusive representative must comply with employer-established worksite security
protocols;
new text end

deleted text begin Meetings conducted deleted text end new text begin (3) a meeting new text end in new text begin a new text end government deleted text begin buildings pursuant to this paragraph
must not deleted text end new text begin building cannot new text end be for deleted text begin the purpose of deleted text end supporting or opposing any candidate for
partisan political office or for deleted text begin the purpose of deleted text end distributing literature or information deleted text begin regarding deleted text end new text begin
on new text end partisan elections deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) new text end an exclusive representative conducting a meeting in a government building or other
government facility deleted text begin pursuant to this subdivision deleted text end may be charged for maintenance, security,
and other costs related to deleted text begin the use of deleted text end new text begin using new text end the government building or facility that would
not otherwise be incurred by the government entity.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 179A.10, subdivision 2, is amended
to read:

Subd. 2.

State employees.

(a) Unclassified employees, unless otherwise excluded, are
included within the units deleted text begin which deleted text end new text begin that new text end include the classifications to which they are assigned
for purposes of compensation. Supervisory employees deleted text begin shall only deleted text end new text begin can new text end be assigned new text begin only new text end to
deleted text begin units deleted text end new text begin unit new text end 12 deleted text begin and deleted text end new text begin or new text end 16. The following new text begin units new text end are the appropriate units of executive branch
state employees:

(1) law enforcement unit;

(2) craft, maintenance, and labor unit;

(3) service unit;

(4) health care nonprofessional unit;

(5) health care professional unit;

(6) clerical and office unit;

(7) technical unit;

(8) correctional guards unit;

(9) state university instructional unit;

(10) state college instructional unit;

(11) state university administrative unit;

(12) professional engineering unit;

(13) health treatment unit;

(14) general professional unit;

(15) professional state residential instructional unit;

(16) supervisory employees unit;

(17) public safety radio communications operator unit;

(18) licensed peace officer special unit; and

(19) licensed peace officer leader unit.

deleted text begin Each unit consists of the classifications or positions assigned to it in the schedule of
state employee job classification and positions maintained by the commissioner. The
commissioner may only make changes in the schedule in existence on the day prior to
August 1, 1984, as required by law or as provided in subdivision 4.
deleted text end

(b) The following positions are included in the licensed peace officer special unit:

(1) State Patrol lieutenant;

(2) NR district supervisor - enforcement;

(3) assistant special agent in charge;

(4) corrections investigation assistant director 2;

(5) corrections investigation supervisor; and

(6) commerce supervisor special agent.

(c) The following positions are included in the licensed peace officer leader unit:

(1) State Patrol captain;

(2) NR program manager 2 enforcement; and

(3) special agent in charge.

new text begin (d) Each unit consists of the classifications or positions assigned to it in the schedule of
state employee job classification and positions maintained by the commissioner. The
commissioner may make changes in the schedule in existence on the day before August 1,
1984, only:
new text end

new text begin (1) as required by law; or
new text end

new text begin (2) as provided in subdivision 4.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 2a, is amended
to read:

Subd. 2a.

Majority verification procedure.

(a) deleted text begin Notwithstanding any other provision
of this section, deleted text end An employee organization may file a petition with the commissioner
requesting certification as the exclusive representative of deleted text begin an deleted text end new text begin a proposed new text end appropriate unit
deleted text begin based on a verification that deleted text end new text begin for which there is no currently certified exclusive representative.
The petition must verify that new text end over 50 percent of the employees in the proposed appropriate
unit wish to be represented by the deleted text begin petitioner deleted text end new text begin organization new text end . deleted text begin The commissioner shall require
dated representation authorization signatures of affected employees as verification of the
employee organization's claim of majority status.
deleted text end

(b) deleted text begin Upon receipt of an employee organization's petition, accompanied by employee
authorization signatures under this subdivision, the commissioner shall investigate the
petition. deleted text end If the commissioner determines that over 50 percent of the employees in deleted text begin an deleted text end new text begin the new text end
appropriate unit have provided authorization signatures designating the new text begin petitioning new text end employee
organization deleted text begin specified in the petition deleted text end as their exclusive representative, the commissioner
deleted text begin shall not order an election but shall deleted text end new text begin must new text end certify the employee organization new text begin as the employees'
exclusive representative without ordering an election under this section new text end .

Sec. 7.

Minnesota Statutes 2022, section 179A.12, subdivision 5, is amended to read:

Subd. 5.

Commissioner to investigate.

deleted text begin The commissioner shall, deleted text end Upon deleted text begin receipt of an
employee organization's deleted text end new text begin receiving a new text end petition deleted text begin to the commissioner deleted text end under subdivision deleted text begin 3 deleted text end new text begin 1a
or 2a new text end , new text begin the commissioner must:
new text end

new text begin (1) new text end investigate to determine if sufficient evidence of a question of representation exists new text begin ; new text end
and

new text begin (2) new text end hold hearings necessary to determine the appropriate unit and other matters necessary
to determine the representation rights of the affected employees and employer.

Sec. 8.

Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 6, is amended
to read:

Subd. 6.

Authorization signatures.

deleted text begin In deleted text end new text begin (a) When new text end determining the numerical status of
an employee organization for purposes of this section, the commissioner deleted text begin shall deleted text end new text begin must new text end require
new text begin a new text end dated representation authorization deleted text begin signatures of affected employees deleted text end new text begin signature of each
affected employee new text end as verification of the statements contained in the deleted text begin joint request or petitions deleted text end new text begin
petition new text end . deleted text begin These
deleted text end

new text begin (b) An new text end authorization deleted text begin signatures shall be deleted text end new text begin signature is new text end privileged and confidential
information available to the commissioner only. new text begin An new text end electronic deleted text begin signatures deleted text end new text begin signature new text end , as
defined in section 325L.02, paragraph (h), deleted text begin shall be deleted text end new text begin is new text end valid as new text begin an new text end authorization deleted text begin signatures deleted text end new text begin
signature new text end .

new text begin (c) An new text end authorization deleted text begin signatures shall be deleted text end new text begin signature is new text end valid for deleted text begin a period of deleted text end one year
following the new text begin signature new text end date deleted text begin of signature deleted text end .

Sec. 9.

Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 11, is amended
to read:

Subd. 11.

Unfair labor practices.

new text begin The commissioner may void the result of an election
or majority verification procedure and order a new election or procedure new text end if the commissioner
finds deleted text begin that deleted text end new text begin one of the following:
new text end

new text begin (1) there was new text end an unfair labor practice new text begin that:
new text end

new text begin (i) new text end was committed by an employer deleted text begin or deleted text end new text begin , a new text end representative candidate deleted text begin or deleted text end new text begin , new text end an employee new text begin , new text end or new text begin a
new text end group of employees deleted text begin , deleted text end new text begin ; new text end and deleted text begin that the unfair labor practice
deleted text end

new text begin (ii) new text end affected the result of deleted text begin an deleted text end new text begin the new text end election or new text begin the new text end majority verification procedure deleted text begin pursuant
to subdivision 2a, deleted text end new text begin ; new text end or deleted text begin that
deleted text end

new text begin (2) new text end procedural or other irregularities in the conduct of the election or majority verification
procedure may have substantially affected deleted text begin its deleted text end new text begin the new text end results deleted text begin , the commissioner may void the
result and order a new election or majority verification procedure deleted text end .

Sec. 10. new text begin RULEMAKING.
new text end

new text begin The commissioner must adopt rules on petitions for majority verification, including
technical changes needed for consistency with Minnesota Statutes, section 179A.12, and
the commissioner may use the expedited rulemaking process under Minnesota Statutes,
section 14.389.
new text end

Sec. 11. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes must renumber Minnesota Statutes, section 179A.12, subdivision
3, as Minnesota Statutes, section 179A.12, subdivision 1a.
new text end

ARTICLE 6

UNIVERSITY OF MINNESOTA COLLECTIVE BARGAINING UNITS

Section 1.

Minnesota Statutes 2023 Supplement, section 179A.03, subdivision 14, is
amended to read:

Subd. 14.

Public employee or employee.

(a) "Public employee" or "employee" means
any person appointed or employed by a public employer except:

(1) elected public officials;

(2) election officers;

(3) commissioned or enlisted personnel of the Minnesota National Guard;

(4) emergency employees who are employed for emergency work caused by natural
disaster;

(5) part-time employees whose service does not exceed the lesser of 14 hours per week
or 35 percent of the normal work week in the employee's appropriate unit;

(6) employees whose positions are basically temporary or seasonal in character and: (i)
are not for more than 67 working days in any calendar year; new text begin or new text end (ii) are not working for a
Minnesota school district or charter school; deleted text begin or (iii) are not for more than 100 working days
in any calendar year and the employees are under the age of 22, are full-time students
enrolled in a nonprofit or public educational institution prior to being hired by the employer,
and have indicated, either in an application for employment or by being enrolled at an
educational institution for the next academic year or term, an intention to continue as students
during or after their temporary employment;
deleted text end

(7) employees providing services for not more than two consecutive quarters to the
Board of Trustees of the Minnesota State Colleges and Universities under the terms of a
professional or technical services contract as defined in section 16C.08, subdivision 1;

(8) employees of charitable hospitals as defined by section 179.35, subdivision 3, except
that employees of charitable hospitals as defined by section 179.35, subdivision 3, are public
employees for purposes of sections 179A.051, 179A.052, and 179A.13;

deleted text begin (9) full-time undergraduate students employed by the school which they attend under a
work-study program or in connection with the receipt of financial aid, irrespective of number
of hours of service per week;
deleted text end

deleted text begin (10) deleted text end new text begin (9) new text end an individual who is employed for less than 300 hours in a fiscal year as an
instructor in an adult vocational education program;

deleted text begin (11) deleted text end new text begin (10) new text end with respect to court employees:

(i) personal secretaries to judges;

(ii) law clerks;

(iii) managerial employees;

(iv) confidential employees; and

(v) supervisory employees; or

deleted text begin (12) deleted text end new text begin (11) new text end with respect to employees of Hennepin Healthcare System, Inc., managerial,
supervisory, and confidential employees.

(b) The following individuals are public employees regardless of the exclusions of
paragraph (a), clauses (5) to (7):

(1) an employee hired by a school district or the Board of Trustees of the Minnesota
State Colleges and Universities except at the university established in the Twin Cities
metropolitan area under section 136F.10 or for community services or community education
instruction offered on a noncredit basis: (i) to replace an absent teacher or faculty member
who is a public employee, where the replacement employee is employed more than 30
working days as a replacement for that teacher or faculty member; or (ii) to take a teaching
position created due to increased enrollment, curriculum expansion, courses which are a
part of the curriculum whether offered annually or not, or other appropriate reasons;

(2) an employee hired for a position under paragraph (a), clause (6), item (i), if that same
position has already been filled under paragraph (a), clause (6), item (i), in the same calendar
year and the cumulative number of days worked in that same position by all employees
exceeds 67 calendar days in that year. For the purpose of this paragraph, "same position"
includes a substantially equivalent position if it is not the same position solely due to a
change in the classification or title of the position;

(3) an early childhood family education teacher employed by a school district; deleted text begin and
deleted text end

(4) an individual hired by the Board of Trustees of the Minnesota State Colleges and
Universities new text begin or the University of Minnesota new text end as the instructor of record to teach (i) one class
for more than three credits in a fiscal year, or (ii) two or more credit-bearing classes in a
fiscal year deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) an individual who: (i) is paid by the Board of Regents of the University of Minnesota
for work performed at the direction of the university or any of its employees or contractors;
and (ii) is enrolled in three or more university credit-bearing classes or one semester as a
full-time student or post-doctoral fellow during the fiscal year in which the work is
performed. For purposes of this section, work paid by the university includes but is not
limited to work that is required as a condition of receiving a stipend or tuition benefit,
whether or not the individual also receives educational benefit from performing that work.
Individuals who perform supervisory functions in regard to any of the aforementioned
workers are not considered supervisory employees for the purpose of section 179A.06,
subdivision 2.
new text end

Sec. 2.

Minnesota Statutes 2022, section 179A.11, subdivision 1, is amended to read:

Subdivision 1.

Units.

new text begin (a) new text end The following are deleted text begin the deleted text end appropriate units of University of
Minnesota employees. All units shall exclude managerial and confidential employees.
deleted text begin Supervisory employees shall only be assigned to unit 13. No additional units of University
of Minnesota employees shall be recognized for the purpose of meeting and negotiating.
deleted text end

(1) The Law Enforcement Unit deleted text begin consists of deleted text end new text begin includes new text end the positions of all employees with
the power of arrest.

(2) The Craft and Trades Unit deleted text begin consists of deleted text end new text begin includes new text end the positions of all employees whose
work requires specialized manual skills and knowledge acquired through formal training
or apprenticeship or equivalent on-the-job training or experience.

(3) The Service, Maintenance, and Labor Unit deleted text begin consists of deleted text end new text begin includes new text end the positions of all
employees whose work is typically that of maintenance, service, or labor and which does
not require extensive previous training or experience, except as provided in unit 4.

(4) The Health Care Nonprofessional and Service Unit deleted text begin consists of deleted text end new text begin includes new text end the positions
of all nonprofessional employees of the University of Minnesota hospitals, dental school,
and health service whose work is unique to those settings, excluding labor and maintenance
employees as defined in unit 3.

(5) The Nursing Professional Unit deleted text begin consists of deleted text end new text begin includes new text end all positions which are required
to be filled by registered nurses.

(6) The Clerical and Office Unit deleted text begin consists of deleted text end new text begin includes new text end the positions of all employees
whose work is typically clerical or secretarial, including nontechnical data recording and
retrieval and general office work, except as provided in unit 4.

(7) The Technical Unit deleted text begin consists of deleted text end new text begin includes new text end the positions of all employees whose work
is not typically manual and which requires specialized knowledge or skills acquired through
two-year academic programs or equivalent experience or on-the-job training, except as
provided in unit 4.

deleted text begin (8) The Twin Cities Instructional Unit consists of the positions of all instructional
employees with the rank of professor, associate professor, assistant professor, including
research associate or instructor, including research fellow, located on the Twin Cities
campuses.
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end The Outstate Instructional Unit deleted text begin consists of deleted text end new text begin includes new text end the positions of all instructional
employees with the rank of professor, associate professor, assistant professor, including
research associate or instructor, including research fellow, located at the Duluth campus,
provided that the positions of instructional employees of the same ranks at the Morris,
Crookston, or deleted text begin Waseca deleted text end new text begin Rochester new text end campuses shall be included within this unit if a majority
of the eligible employees voting at a campus so vote during an election conducted by the
commissioner, provided that the election new text begin or majority verification procedure new text end shall not be
held until the Duluth campus has voted in favor of representation. The election shall be held
new text begin or majority verification procedure shall take place new text end when an employee organization or group
of employees petitions the commissioner stating that a majority of the eligible employees
at one of these campuses wishes to join the unit and this petition is supported by a showing
of at least 30 percent support from eligible employees at that campus and is filed between
September 1 and November 1.

deleted text begin Should both units 8 and 9 elect exclusive bargaining representatives, those representatives
may by mutual agreement jointly negotiate a contract with the regents, or may negotiate
separate contracts with the regents. If the exclusive bargaining representatives jointly
negotiate a contract with the regents, the contract shall be ratified by each unit. deleted text end new text begin For the
purposes of this section, "instructional employees" shall include all individuals who spend
35 percent or more of their work time creating, delivering, and assessing the mastery of
credit-bearing coursework.
new text end

(10) The Graduate Assistant Unit deleted text begin consists of deleted text end new text begin includes new text end the positions of all graduate
assistants who are enrolled in the graduate school and who hold the rank of research assistant,
teaching assistant, teaching associate I or II, project assistant, new text begin graduate school fellow,
graduate school trainee, professional school fellow, professional school trainee, new text end or
administrative fellow I or II. new text begin None of the listed ranks refer to ranks under the job category
of professionals-in-training.
new text end

deleted text begin (11) The Academic Professional and Administrative Staff Unit consists of all academic
professional and administrative staff positions that are not defined as included in an
instructional unit, the supervisory unit, the clerical unit, or the technical unit.
deleted text end

deleted text begin (12) The Noninstructional Professional Unit consists of the positions of all employees
meeting the requirements of section 179A.03, subdivision 13, clause (1) or (2), which are
not defined as included within an instructional unit, the Academic Professional and
Administrative Staff Unit, or the supervisory unit.
deleted text end

deleted text begin (13) The Supervisory Employees Unit consists of the positions of all supervisory
employees.
deleted text end

new text begin (b) All University of Minnesota employees whose positions are not within an enumerated
bargaining unit in this subdivision may organize in the manner set forth in section 179A.09,
and the commissioner must place special weight on the desires of the petitioning employee
representatives.
new text end

Sec. 3.

Minnesota Statutes 2022, section 179A.11, subdivision 2, is amended to read:

Subd. 2.

University of Minnesota employee severance.

new text begin (a) new text end Each of the following
groups of University of Minnesota employees has the right, as specified in this subdivision,
to separate from the instructional and supervisory units: (1) health sciences instructional
employees at all campuses with the rank of professor, associate professor, assistant professor,
including research associate, or instructor, including research fellow, (2) instructional
employees of the law school with the rank of professor, associate professor, assistant
professor, including research associate, or instructor, including research fellow, (3)
instructional supervisors, (4) noninstructional professional supervisors, and (5) academic
professional and administrative staff supervisors.

deleted text begin This deleted text end new text begin (b) The new text end right new text begin to separate new text end may be exercised new text begin :
new text end

new text begin (1) new text end by petition between September 1 and November 1. If a group separates from its unit,
it has no right to meet and negotiate, but retains the right to meet and confer with the
appropriate officials on any matter of concern to the group. The right to separate must be
exercised as follows: An employee organization or group of employees claiming that a
majority of any one of these groups of employees on a statewide basis wish to separate from
their unit may petition the commissioner for an election during the petitioning period. If the
petition is supported by a showing of at least 30 percent support from the employees, the
commissioner deleted text begin shall deleted text end new text begin may new text end hold an election on the separation issue new text begin or the petitioning group
may proceed under the process set forth in section 179A.12 new text end . This election must be conducted
within 30 days of the close of the petition period. If a majority of votes cast endorse severance
from their unit, the commissioner shall certify that result deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) by the group's exclusion from a proposed unit in a representation petition.
new text end

new text begin (c) new text end Where not inconsistent with other provisions of this section, the election is governed
by section 179A.12. If a group of employees severs, it may rejoin that unit by following the
procedures for severance during the periods for severance.

Sec. 4.

Minnesota Statutes 2022, section 179A.11, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Joint bargaining. new text end

new text begin Units organized under this section that have elected exclusive
bargaining representatives may by mutual agreement jointly negotiate a contract with the
regents, or may negotiate separate contracts with the regents. If the exclusive bargaining
representatives jointly negotiate a contract with the regents, the contract must be ratified
by each unit.
new text end

ARTICLE 7

MISCELLANEOUS LABOR PROVISIONS

Section 1.

Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, as
amended by Laws 2024, chapter 85, section 15, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Economic development" means financial assistance provided to a person directly
or to a local unit of government or nonprofit organization on behalf of a person who is
engaged in the manufacture or sale of goods and services. Economic development does not
include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance
for new housing construction in which total financial assistance at a single project site is
less than $100,000; or (3) financial assistance for the new construction of fully detached
single-family affordable homeownership units for which the financial assistance covers no
more than ten fully detached single-family affordable homeownership units. For purposes
of this paragraph, "affordable homeownership" means housing targeted at households with
incomes, at initial occupancy, at or below 115 percent of the state or area median income,
whichever is greater, as determined by the United States Department of Housing and Urban
Development.

(c) "Financial assistance" means (1) a grant awarded by a state agency for economic
development related purposes if a single business receives $200,000 or more of the grant
proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for
economic development related purposes if a single business receives $500,000 or more of
the loan proceeds; deleted text begin or deleted text end (3) a reduction, credit, or abatement of a tax assessed under chapter
297A where the tax reduction, credit, or abatement applies to a geographic area smaller
than the entire state and was granted for economic development related purposes new text begin ; (4) tax
increment financing pursuant to section 469.174, provided that such tax increment financing
(i) provides financial assistance to a development that consists, in part or in whole, of 25
units or more of multifamily housing, or (ii) provides $100,000 or more of financial assistance
to a development; or (5) allocations of low-income housing credits by all suballocators as
defined under section 462A.222, for which tax credits are used for multifamily housing
projects consisting of more than ten units new text end . Financial assistance does not include payments
by the state of aids and credits under chapter 273 or 477A to a political subdivision.

(d) "Project site" means the location where improvements are made that are financed in
whole or in part by the financial assistance; or the location of employees that receive financial
assistance in the form of employment and training services as defined in section 116L.19,
subdivision 4, or customized training from a technical college.

(e) "State agency" means any agency defined under section 16B.01, subdivision 2,
Enterprise Minnesota, Inc., and the Department of Iron Range Resources and Rehabilitation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for financial assistance provided after
August 1, 2024, and applies only to tax increment financing districts for which the request
for certification was made on or after August 1, 2024.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 177.42, subdivision 2, is amended
to read:

Subd. 2.

Project.

"Project" means demolition, erection, construction, new text begin alteration,
improvement, restoration, new text end remodeling, or repairing of a public building, new text begin structure, new text end facility,
new text begin land, new text end or other public work new text begin , which includes any work suitable for and intended for use by
the public, or for the public benefit, new text end financed in whole or part by state funds. Project also
includes demolition, erection, construction, new text begin alteration, improvement, restoration, new text end remodeling,
or repairing of a building, new text begin structure, new text end facility, new text begin land, new text end or public work when new text begin :
new text end

new text begin (1) new text end the acquisition of property, predesign, design, or demolition is financed in whole or
part by state funds deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) the project is owned by a city, county, or school district and the materials and supplies
used or consumed in and equipment incorporated into the construction, reconstruction,
upgrade, expansion, renovation, or remodeling of the project qualify for an exemption from
sales and use tax under chapter 297A or special law.
new text end

Sec. 3.

Minnesota Statutes 2022, section 181.960, subdivision 3, is amended to read:

Subd. 3.

Employer.

"Employer" means a person who has deleted text begin 20 deleted text end new text begin one new text end or more employees.
Employer does not include a state agency, statewide system, political subdivision, or advisory
board or commission that is subject to chapter 13.

Sec. 4. new text begin RULEMAKING; ACCEPTABLE BLOOD LEAD LEVELS FOR WORKERS.
new text end

new text begin The commissioner of labor and industry, in consultation with the commissioner of health,
shall adopt rules to:
new text end

new text begin (1) lower the acceptable blood lead levels above which require mandatory removal of
workers from the lead exposure; and
new text end

new text begin (2) lower the blood lead levels required before a worker is allowed to return to work.
The thresholds established must be based on the most recent public health information on
the safety of lead exposure.
new text end

ARTICLE 8

BROADBAND AND PIPELINE SAFETY

Section 1.

Minnesota Statutes 2022, section 116J.395, subdivision 6, is amended to read:

Subd. 6.

Awarding grants.

(a) In evaluating applications and awarding grants, the
commissioner shall give priority to applications that are constructed in areas identified by
the director of the Office of Broadband Development as unserved.

(b) In evaluating applications and awarding grants, the commissioner may give priority
to applications that:

(1) are constructed in areas identified by the director of the Office of Broadband
Development as underserved;

(2) offer new or substantially upgraded broadband service to important community
institutions including, but not limited to, libraries, educational institutions, public safety
facilities, and healthcare facilities;

(3) facilitate the use of telehealth and electronic health records;

(4) serve economically distressed areas of the state, as measured by indices of
unemployment, poverty, or population loss that are significantly greater than the statewide
average;

(5) provide technical support and train residents, businesses, and institutions in the
community served by the project to utilize broadband service;

(6) include a component to actively promote the adoption of the newly available
broadband services in the community;

(7) provide evidence of strong support for the project from citizens, government,
businesses, and institutions in the community;

(8) provide access to broadband service to a greater number of unserved or underserved
households and businesses; or

(9) leverage greater amounts of funding for the project from other private and public
sources.

(c) The commissioner shall endeavor to award grants under this section to qualified
applicants in all regions of the state.

new text begin (d) No less than the following percentages of the total border-to-border broadband grant
funds awarded in the year indicated shall be reserved for applicants that agree to implement
the workforce best practices as defined in paragraph (e):
new text end

new text begin (1) 50 percent in 2024;
new text end

new text begin (2) 60 percent in 2025; and
new text end

new text begin (3) 70 percent in 2026 and thereafter.
new text end

new text begin The applicant's agreement to implement the workforce best practices as defined in paragraph
(e) must be an express condition of providing the grant in the grant agreement.
new text end

new text begin (e) An applicant for a grant under this section is considered to implement workforce
best practices only if the applicant can demonstrate that:
new text end

new text begin (1) there is credible evidence of support for the application and the applicant's workforce
needs on the project for which the grant is provided from one or more labor,
labor-management, or other workforce organizations that have a track record of representing
and advocating for workers or recruiting, training, and securing employment for people of
color, Indigenous people, women, or people with disabilities in the construction industry;
and
new text end

new text begin (2) all laborers and mechanics performing construction, installation, remodeling, or
repairs on the project sites for which the grant is provided:
new text end

new text begin (i) are paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the
applicant and all of its construction contractors and subcontractors agree that the payment
of prevailing wage to such laborers and mechanics is subject to the requirements and
enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and
177.45, which the commissioner of labor and industry shall have the authority to enforce;
or
new text end

new text begin (ii) receive from their employer:
new text end

new text begin (A) at least 80 hours of skills training annually, of which at least 40 hours must consist
of hands-on instruction;
new text end

new text begin (B) employer-paid family health insurance coverage; and
new text end

new text begin (C) employer-paid retirement benefit payments equal to no less than 15 percent of the
employee's total taxable wages.
new text end

new text begin (f) In the event that the commissioner does not receive enough qualified applications to
achieve the standards under paragraph (d), the commissioner shall consult with prospective
applicants and labor and workforce organizations under paragraph (e), clause (1), to solicit
additional qualified applications.
new text end

Sec. 2.

new text begin [116J.3991] BROADBAND, EQUITY, ACCESS, AND DEPLOYMENT
(BEAD).
new text end

new text begin Subdivision 1. new text end

new text begin Implementation. new text end

new text begin The commissioner shall implement a Broadband,
Equity, Access, and Deployment (BEAD) Program that prioritizes applicants for state
funding that demonstrate the following:
new text end

new text begin (1) commitment by the applicant to robust training programs with established
requirements that are tied to uniform wage scales, job titles, and relevant certifications or
skill codes;
new text end

new text begin (2) use of a directly employed workforce, as opposed to a subcontracted workforce, to
perform broadband placing, splicing, and maintenance work. Public entity applicants may
meet this requirement by use of a directly employed workforce or committing to contract
with an Internet service provider that will use a directly employed workforce;
new text end

new text begin (3) commitment to implement workforce best practices under section 116J.395,
subdivision 6, paragraph (e), on the project or projects for which the applicant seeks public
funding; and
new text end

new text begin (4) commitment to retaining a locally based workforce and establishing programs to
promote training and hiring pipelines for underrepresented communities.
new text end

new text begin Subd. 2. new text end

new text begin Project evaluation. new text end

new text begin In projects funded by the BEAD Program, the criteria
under subdivision 1 and section 116J.395, subdivision 6, paragraph (e), shall receive a
priority point allocation in the point scheme for project applications, such that these criteria
shall, together with points awarded for labor law compliance, constitute no fewer than 25
points of the evaluation scheme, out of 100. No fewer than 20 points must be based on an
applicant's forward-looking commitments regarding implementation of workforce best
practices and other commitments listed in this section.
new text end

new text begin Subd. 3. new text end

new text begin Disclosures. new text end

new text begin Applicants' disclosures responding to the criteria in subdivision
1 and section 116J.395, subdivision 6, paragraph (e), must be publicly available on the
department website, and all workforce commitments made under this section and section
116J.395 shall become enforceable, certified commitments and conditions of the grant.
new text end

new text begin Subd. 4. new text end

new text begin Workforce plan data. new text end

new text begin (a) Grantees in projects funded by the program under
this section and section 116J.395 are required to provide in biannual reports information
on their workforce, including:
new text end

new text begin (1) whether the workforce will be directly employed by the grantee or the Internet service
provider or whether work will be performed by a subcontracted workforce;
new text end

new text begin (2) the entities that the contractor plans to subcontract with in carrying out the proposed
work, if any, and the entity employing the workforce in each job title;
new text end

new text begin (3) the job titles and size of the workforce, including the number of full-time equivalent
positions that are required to carry out the proposed work over the course of the project;
new text end

new text begin (4) for each job title required to carry out the proposed work, a description of wages,
benefits, applicable wage scales including overtime rates, and a description of how wages
are calculated; and
new text end

new text begin (5) any other workforce plan information as determined by the commissioner.
new text end

new text begin (b) Following an award, the workforce plan and the requirement to submit ongoing
workforce reports shall be incorporated as material conditions of the contract with the
department and become enforceable, certified commitments. The commissioner must conduct
regular reviews to assure compliance and take appropriate measures for enforcement.
new text end

new text begin Subd. 5. new text end

new text begin Failure to meet requirements or falsification of data. new text end

new text begin If successful applicants
fail to meet the program requirements under this section, or otherwise falsify information
regarding such requirements, the commissioner shall investigate the failure and issue an
appropriate action, up to and including a determination that the applicant is ineligible for
future participation in broadband grant programs funded by the department.
new text end

new text begin Subd. 6. new text end

new text begin Federal grant requirements. new text end

new text begin The commissioner shall have authority not to
enforce or apply any requirement of this section to the extent that the requirement would
prevent the state from receiving federal broadband grant funding.
new text end

Sec. 3.

new text begin [181.912] UNDERGROUND TELECOMMUNICATIONS
INFRASTRUCTURE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section:
new text end

new text begin (1) "directional drilling" means a drilling method that utilizes a steerable drill bit to cut
a bore hole for installing underground utilities;
new text end

new text begin (2) "safety-qualified underground telecommunications installer" means a person who
has completed underground utilities installation certification under subdivision 3;
new text end

new text begin (3) "underground telecommunications utilities" means buried broadband, telephone and
other telecommunications transmission, distribution and service lines, and associated
facilities; and
new text end

new text begin (4) "underground utilities" means buried electric transmission and distribution lines, gas
and hazardous liquids pipelines and distribution lines, sewer and water pipelines, telephone
or telecommunications lines, and associated facilities.
new text end

new text begin Subd. 2. new text end

new text begin Installation requirements. new text end

new text begin The installation of underground telecommunications
infrastructure that is located within ten feet of existing underground utilities or that crosses
said utilities must be performed by safety-qualified underground telecommunications
installers as follows:
new text end

new text begin (1) the location of existing utilities by hand or hydro excavation or other accepted methods
must be performed by a safety-qualified underground telecommunications installer;
new text end

new text begin (2) where telecommunications infrastructure is installed by means of directional drilling,
the monitoring of the location and depth of the drill head must be performed by a
safety-qualified underground telecommunications installer; and
new text end

new text begin (3) no less than two safety-qualified underground telecommunications installers must
be present at all times at any location where telecommunications infrastructure is being
installed by means of directional drilling.
new text end

new text begin Subd. 3. new text end

new text begin Certification Standards. new text end

new text begin (a) The commissioner of labor and industry shall
approve standards for a safety-qualified underground telecommunications installer
certification program that requires a person to:
new text end

new text begin (1) complete a 40-hour initial course that includes classroom and hands-on instruction
covering proper work procedures for safe installation of underground utilities, including:
new text end

new text begin (i) regulations applicable to excavation near existing utilities;
new text end

new text begin (ii) identification, location, and verification of utility lines using hand or hydro excavation
or other accepted methods;
new text end

new text begin (iii) response to line strike incidents;
new text end

new text begin (iv) traffic control procedures;
new text end

new text begin (v) use of a tracking device to safely guide directional drill equipment along a drill path;
and
new text end

new text begin (vi) avoidance and mitigation of safety hazards posed by underground utility installation
projects;
new text end

new text begin (2) demonstrate knowledge of the course material by successfully completing an
examination approved by the commissioner; and
new text end

new text begin (3) complete a four-hour refresher course within three years of completing the original
course and every three years thereafter in order to maintain certification.
new text end

new text begin (b) The commissioner must develop an approval process for training providers under
this subdivision, and may suspend or revoke the approval of any training provider that fails
to demonstrate consistent delivery of approved curriculum or success in preparing participants
to complete the examination.
new text end

Sec. 4.

Minnesota Statutes 2022, section 216B.17, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Telecommunications and cable communications systems. new text end

new text begin (a) The commission
has authority under this section to investigate, upon complaint or on its own motion, conduct
by or on behalf of a telecommunications carrier, telephone company, or cable
communications system provider that impacts public utility or cooperative electric association
infrastructure. If the commission finds that the conduct damaged or unreasonably interfered
with the function of the infrastructure, the commission may take any action authorized under
sections 216B.52 to 216B.61 with respect to the provider.
new text end

new text begin (b) For purposes of this subdivision:
new text end

new text begin (1) "telecommunications carrier" has the meaning given in section 237.01, subdivision
6;
new text end

new text begin (2) "telephone company" has the meaning given in section 237.01, subdivision 7; and
new text end

new text begin (3) "cable communications system provider" means an owner or operator of a cable
communications system as defined in section 238.02, subdivision 3.
new text end

Sec. 5.

Minnesota Statutes 2022, section 299J.01, is amended to read:

299J.01 AUTHORITY OF OFFICE OF PIPELINE SAFETY.

The commissioner of public safety shall, to the extent authorized by agreement with the
United States Secretary of Transportation, act as agent for the United States Secretary of
Transportation to implement the federal Hazardous Liquid Pipeline Safety deleted text begin Act, United
States Code, title 49, sections 2001 to 2014, the federal deleted text end new text begin and new text end Natural Gas Pipeline Safety
deleted text begin Act deleted text end new text begin acts new text end , United States Code, title 49, sections deleted text begin 1671 to 1686 deleted text end new text begin 60101 to 60141 new text end , and federal
pipeline safety regulations with respect to interstate pipelines located within this state. The
commissioner shall, to the extent authorized by federal law, regulate pipelines in the state
as authorized by sections 299J.01 to 299J.17 and 299F.56 to 299F.641.

Sec. 6.

Minnesota Statutes 2022, section 299J.02, is amended by adding a subdivision to
read:

new text begin Subd. 14. new text end

new text begin Utility corridor. new text end

new text begin "Utility corridor" means land that contains access to
above-ground utility infrastructure or an underground facility as defined in section 216D.01,
subdivision 11.
new text end

Sec. 7.

Minnesota Statutes 2022, section 299J.04, subdivision 2, is amended to read:

Subd. 2.

Delegated duties.

(a) The commissioner shall seek and accept federal
designation of the office's pipeline inspectors as federal agents for the purposes of
enforcement of the federal Hazardous Liquid Pipeline Safety deleted text begin Act, United States Code, title
49, sections 2001 to 2014, the federal deleted text end new text begin and new text end Natural Gas Pipeline Safety deleted text begin Act deleted text end new text begin acts new text end , United
States Code, title 49, sections deleted text begin 1671 to 1686 deleted text end new text begin 60101 to 60141 new text end , and federal rules adopted to
implement those acts. The commissioner shall establish and submit to the United States
Secretary of Transportation an inspection program that complies with requirements for
delegated interstate agent inspection authority.

(b) To the extent that federal delegation of interstate agent inspection authority permits,
the inspection program for interstate pipelines and LNG facilities must be the same as the
inspection program for intrastate pipelines and LNG facilities. If the United States Secretary
of Transportation delegates inspection authority to the state as provided in this subdivision,
the commissioner, at a minimum, shall do the following to carry out the delegated federal
authority:

(1) inspect pipelines and LNG facilities periodically as specified in the inspection
program;

(2) collect inspection fees;

(3) order and oversee the testing of pipelines and LNG facilities as authorized by federal
law and regulations; and

(4) file reports with the United States Secretary of Transportation as required to maintain
the delegated inspection authority.

Sec. 8.

Minnesota Statutes 2022, section 299J.11, is amended to read:

299J.11 ADOPTION OF FEDERAL PIPELINE INSPECTION RULES.

new text begin (a) new text end To enable the state to act as an agent of the United States Secretary of Transportation
and to qualify for annual federal certification to enforce the federal pipeline inspection
program authorized by the Hazardous Liquid Pipeline Safety deleted text begin Act, United States Code, title deleted text end
deleted text begin 49, sections 2001 to 2014, the federal deleted text end new text begin and new text end Natural Gas Pipeline Safety deleted text begin Act deleted text end new text begin acts new text end , United
States Code, title 49, sections deleted text begin 1671 to 1686 deleted text end new text begin 60101 to 60141 new text end , and the rules implementing
those acts, the federal pipeline inspection rules and safety standards, and regulations and
standards that may be adopted that amend them, are adopted.

new text begin (b) An individual or contractor performing construction or maintenance work within 20
feet of a utility corridor must comply with the operator qualification rules set forth in Code
of Federal Regulations, title 49, parts 192, subpart N, and 195, subpart G.
new text end

new text begin (c) An individual or contractor performing construction or maintenance work within 20
feet of a utility corridor must comply with the workplace drug and alcohol testing rules set
forth in Code of Federal Regulations, title 49, part 40.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 116J.398, new text end new text begin is repealed.
new text end

ARTICLE 9

EMPLOYEE MISCLASSIFICATION PROHIBITED

Section 1.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 1, is amended
to read:

Subdivision 1.

Examination of records.

The commissioner may enter during reasonable
office hours or upon request and inspect the place of business or employment of any employer
of employees working in the state, to examine and inspect books, registers, payrolls, and
other records of any employer that in any way relate to wages, hours, and other conditions
of employment of any employees. The commissioner may transcribe any or all of the books,
registers, payrolls, and other records as the commissioner deems necessary or appropriate
and may question the new text begin employer, new text end employees new text begin , and other persons new text end to ascertain compliance with
new text begin any of the new text end sections deleted text begin 177.21 to 177.435 and 181.165 deleted text end new text begin listed in subdivision 4 new text end . The commissioner
may investigate wage claims or complaints by an employee against an employer if the failure
to pay a wage may violate Minnesota law or an order or rule of the department.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended
to read:

Subd. 2.

Submission of records; penalty.

The commissioner may require the employer
of employees working in the state to submit to the commissioner photocopies, certified
copies, or, if necessary, the originals of deleted text begin employment deleted text end records new text begin that relate to employment or
employment status new text end which the commissioner deems necessary or appropriate. The records
which may be required include full and correct statements in writing, including sworn
statements by the employer, containing information relating to wages, hours, names,
addresses, and any other information pertaining to the employer's employees and the
conditions of their employment as the commissioner deems necessary or appropriate.

The commissioner may require the records to be submitted by certified mail delivery
or, if necessary, by personal delivery by the employer or a representative of the employer,
as authorized by the employer in writing.

The commissioner may fine the employer up to $10,000 for each failure to submit or
deliver records as required by this section. This penalty is in addition to any penalties
provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
under this subdivision, the appropriateness of such penalty to the size of the employer's
business and the gravity of the violation shall be considered.

Sec. 3.

Minnesota Statutes 2022, section 177.27, subdivision 3, is amended to read:

Subd. 3.

Adequacy of records.

If the records maintained by the employer do not provide
sufficient information to determine the exact amount of back wages due an employee, the
commissioner may make a determination of wages due based on available evidence deleted text begin and
mediate a settlement with the employer deleted text end .

Sec. 4.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended
to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 179.86, 181.02, 181.03, 181.031,
181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, paragraph
(a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, new text begin 181.723, new text end 181.79,
181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09,
subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section
177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer
to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated.
For purposes of this subdivision only, a violation is repeated if at any time during the two
years that preceded the date of violation, the commissioner issued an order to the employer
for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or
the commissioner and the employer have entered into a settlement agreement that required
the employer to pay back wages that were required by sections 177.41 to 177.435. The
department shall serve the order upon the employer or the employer's authorized
representative in person or by certified mail at the employer's place of business. An employer
who wishes to contest the order must file written notice of objection to the order with the
commissioner within 15 calendar days after being served with the order. A contested case
proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If,
within 15 calendar days after being served with the order, the employer fails to file a written
notice of objection with the commissioner, the order becomes a final order of the
commissioner. For the purposes of this subdivision, an employer includes a contractor that
has assumed a subcontractor's liability within the meaning of section 181.165.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended
to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have
violated a section identified in subdivision 4, or any rule adopted under section 177.28,
181.213, or 181.215, and the commissioner issues an order to comply, the commissioner
shall order the employer to cease and desist from engaging in the violative practice and to
take such affirmative steps that in the judgment of the commissioner will effectuate the
purposes of the section or rule violated. new text begin In addition to remedies, damages, and penalties
provided for in the violated section, new text end the commissioner shall order the employer to pay to
the aggrieved parties back pay, gratuities, and compensatory damages, less any amount
actually paid to the deleted text begin employee deleted text end new text begin aggrieved parties new text end by the employer, and for an additional equal
amount as liquidated damages. Any employer who is found by the commissioner to have
repeatedly or willfully violated a section or sections identified in subdivision 4 shall be
subject to deleted text begin a deleted text end new text begin an additional new text end civil penalty of up to $10,000 for each violation for each employee.
In determining the amount of a civil penalty under this subdivision, the appropriateness of
such penalty to the size of the employer's business and the gravity of the violation shall be
considered. In addition, the commissioner may order the employer to reimburse the
department and the attorney general for all appropriate litigation and hearing costs expended
in preparation for and in conducting the contested case proceeding, unless payment of costs
would impose extreme financial hardship on the employer. If the employer is able to establish
extreme financial hardship, then the commissioner may order the employer to pay a
percentage of the total costs that will not cause extreme financial hardship. Costs include
but are not limited to the costs of services rendered by the attorney general, private attorneys
if engaged by the department, administrative law judges, court reporters, and expert witnesses
as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance
of a commissioner's order from the date the order is signed by the commissioner until it is
paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The
commissioner may establish escrow accounts for purposes of distributing new text begin remedies and new text end
damages.

Sec. 6.

Minnesota Statutes 2022, section 181.171, subdivision 1, is amended to read:

Subdivision 1.

Civil action; damages.

A person may bring a civil action seeking redress
for violations of sections 181.02, 181.03, 181.031, 181.032, 181.08, 181.09, 181.10, 181.101,
181.11, 181.13, 181.14, 181.145, deleted text begin and deleted text end 181.15 new text begin , 181.722, and 181.723 new text end directly to district court.
An employer who is found to have violated the above sections is liable to the aggrieved
party for the civil penalties or damages provided for in the section violated. An employer
who is found to have violated the above sections shall also be liable for compensatory
damages and other appropriate relief including but not limited to injunctive relief.

Sec. 7.

Minnesota Statutes 2022, section 181.722, is amended to read:

181.722 deleted text begin MISREPRESENTATION deleted text end new text begin MISCLASSIFICATION new text end OF deleted text begin EMPLOYMENT
RELATIONSHIP PROHIBITED deleted text end new text begin EMPLOYEES new text end .

Subdivision 1.

deleted text begin Prohibition deleted text end new text begin Prohibited activities related to employment status new text end .

deleted text begin No
employer shall misrepresent the nature of its employment relationship with its employees
to any federal, state, or local government unit; to other employers; or to its employees. An
employer misrepresents the nature of its employment relationship with its employees if it
makes any statement regarding the nature of the relationship that the employer knows or
has reason to know is untrue and if it fails to report individuals as employees when legally
required to do so.
deleted text end

new text begin (a) A person shall not:
new text end

new text begin (1) fail to classify, represent, or treat an individual who is the person's employee pursuant
to subdivision 3 as an employee in accordance with the requirements of any applicable local,
state, or federal law. A violation under this clause is in addition to any violation of local,
state, or federal law;
new text end

new text begin (2) fail to report or disclose to any person or to any local, state, or federal government
agency an individual who is the person's employee pursuant to subdivision 3 as an employee
when required to do so under any applicable local, state, or federal law. Each failure to
report or disclose an individual as an employee shall constitute a separate violation of this
clause; or
new text end

new text begin (3) require or request an individual who is the person's employee pursuant to subdivision
3 to enter into any agreement or complete any document that misclassifies, misrepresents,
or treats the individual as an independent contractor or otherwise does not reflect that the
individual is the person's employee pursuant to subdivision 3. Each agreement or completed
document constitutes a separate violation of this provision.
new text end

new text begin (b) An owner, partner, principal, member, officer, or agent, on behalf of the person, who
engaged in any of the prohibited activities in this subdivision may be held individually
liable.
new text end

new text begin (c) An order issued by the commissioner to a person for engaging in any of the prohibited
activities in this subdivision is in effect against any successor person. A person is a successor
person if the person shares three or more of the following with the person to whom the order
was issued:
new text end

new text begin (1) has one or more of the same owners, members, principals, officers, or managers;
new text end

new text begin (2) performs similar work within the state of Minnesota;
new text end

new text begin (3) has one or more of the same telephone or fax numbers;
new text end

new text begin (4) has one or more of the same email addresses or websites;
new text end

new text begin (5) employs or engages substantially the same individuals to provide or perform services;
new text end

new text begin (6) utilizes substantially the same vehicles, facilities, or equipment; or
new text end

new text begin (7) lists or advertises substantially the same project experience and portfolio of work.
new text end

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) "Person" means any individual, sole proprietor, limited liability
company, limited liability partnership, corporation, partnership, incorporated or
unincorporated association, joint stock company, or any other legal or commercial entity.
new text end

new text begin (b) "Department" means the Department of Labor and Industry.
new text end

new text begin (c) "Commissioner" means the commissioner of labor and industry or a duly designated
representative of the commissioner who is either an employee of the Department of Labor
and Industry or a person working under contract with the Department of Labor and Industry.
new text end

new text begin (d) "Individual" means a human being.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Agreements to misclassify prohibited. deleted text end

deleted text begin No employer shall require or request
any employee to enter into any agreement, or sign any document, that results in
misclassification of the employee as an independent contractor or otherwise does not
accurately reflect the employment relationship with the employer.
deleted text end

Subd. 3.

Determination of employment relationship.

For purposes of this section, the
nature of an employment relationship is determined using the same tests and in the same
manner as employee status is determined under the applicable workers' compensation deleted text begin and deleted text end new text begin
or new text end unemployment insurance program laws and rules.

Subd. 4.

deleted text begin Civil remedy deleted text end new text begin Damages and penalties new text end .

deleted text begin A construction worker, as defined in
section 179.254, who is not an independent contractor and has been injured by a violation
of this section, may bring deleted text end deleted text begin a civil action for damages against the violator. If the construction
worker injured is an employee of the violator of this section, the employee's representative,
as defined in section 179.01, subdivision 5, may bring a civil action for damages against
the violator on behalf of the employee. The court may award attorney fees, costs, and
disbursements to a construction worker recovering under this section.
deleted text end

new text begin (a) The following damages and penalties may be imposed for a violation of this section:
new text end

new text begin (1) compensatory damages to the individual the person has failed to classify, represent,
or treat as an employee pursuant to subdivision 3. Compensatory damages includes but is
not limited to the value of supplemental pay including minimum wage; overtime; shift
differentials; vacation pay, sick pay, and other forms of paid time off; health insurance; life
and disability insurance; retirement plans; savings plans and any other form of benefit;
employer contributions to unemployment insurance; Social Security and Medicare; and any
costs and expenses incurred by the individual resulting from the person's failure to classify,
represent, or treat the individual as an employee;
new text end

new text begin (2) a penalty of up to $10,000 for each individual the person failed to classify, represent,
or treat as an employee pursuant to subdivision 3;
new text end

new text begin (3) a penalty of up to $10,000 for each violation of subdivision 1; and
new text end

new text begin (4) a penalty of $1,000 for each person who delays, obstructs, or otherwise fails to
cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure
to cooperate constitutes a separate violation.
new text end

new text begin (b) This section may be investigated and enforced under the commissioner's authority
under state law.
new text end

Subd. 5.

Reporting of violations.

Any court finding that a violation of this section has
occurred shall transmit a copy of its findings of fact and conclusions of law to the
commissioner of labor and industry. The commissioner of labor and industry shall report
the finding to relevant new text begin local, new text end state new text begin , new text end and federal agencies, including the commissioner of
commerce, the commissioner of employment and economic development, the commissioner
of revenue, the federal Internal Revenue Service, and the United States Department of Labor.

Sec. 8.

Minnesota Statutes 2022, section 181.723, is amended to read:

181.723 new text begin MISCLASSIFICATION OF new text end CONSTRUCTION deleted text begin CONTRACTORS deleted text end new text begin
EMPLOYEES new text end .

Subdivision 1.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Person" means any individual, new text begin sole proprietor, new text end limited liability company, limited
liability partnership, corporation, partnership, incorporated or unincorporated association,
deleted text begin sole proprietorship, deleted text end joint stock company, or any other legal or commercial entity.

(b) "Department" means the Department of Labor and Industry.

(c) "Commissioner" means the commissioner of labor and industry or a duly designated
representative of the commissioner who is either an employee of the Department of Labor
and Industry or person working under contract with the Department of Labor and Industry.

(d) "Individual" means a human being.

(e) "Day" means calendar day unless otherwise provided.

(f) "Knowingly" means knew or could have known with the exercise of reasonable
diligence.

(g) "Business entity" means a person deleted text begin other than an individual or a sole proprietor deleted text end new text begin as that
term is defined in paragraph (a), except the term does not include an individual new text end .

new text begin (h) "Independent contractor" means a business entity that meets all the requirements
under subdivision 4, paragraph (a).
new text end

Subd. 2.

Limited application.

This section only applies to deleted text begin individuals deleted text end new text begin persons providing
or new text end performing deleted text begin public or private sector commercial or residential deleted text end building construction or
improvement services. Building construction deleted text begin and deleted text end new text begin or new text end improvement services deleted text begin do not deleted text end include new text begin
all public or private sector commercial or residential building construction or improvement
services except for: new text end (1) the manufacture, supply, or sale of products, materials, or
merchandise; (2) landscaping services for the maintenance or removal of existing plants,
shrubs, trees, and other vegetation, whether or not the services are provided as part of a
contract for the building construction or improvement services; and (3) all other landscaping
services, unless the other landscaping services are provided as part of a contract for the
building construction or improvement services.

Subd. 3.

Employee-employer relationship.

Except as provided in subdivision 4, for
purposes of chapters 176, 177, new text begin 181, new text end 181A, 182, deleted text begin and deleted text end 268, deleted text begin as of January 1, 2009 deleted text end new text begin and 326B new text end ,
an individual who new text begin provides or new text end performs new text begin building construction or improvement new text end services for
a person that are in the course of the person's trade, business, profession, or occupation is
an employee of that person and that person is an employer of the individual.

Subd. 4.

Independent contractor.

(a) An individual is an independent contractor and
not an employee of the person for whom the individual is new text begin providing or new text end performing services
in the course of the person's trade, business, profession, or occupation only if the individual new text begin
is operating as a business entity that meets all of the following requirements at the time the
services were provided or performed new text end :

deleted text begin (1) maintains a separate business with the individual's own office, equipment, materials,
and other facilities;
deleted text end

deleted text begin (2)(i) holds or has applied for a federal employer identification number or (ii) has filed
business or self-employment income tax returns with the federal Internal Revenue Service
if the individual has performed services in the previous year;
deleted text end

deleted text begin (3) is operating under contract to perform the specific services for the person for specific
amounts of money and under which the individual controls the means of performing the
services;
deleted text end

deleted text begin (4) is incurring the main expenses related to the services that the individual is performing
for the person under the contract;
deleted text end

deleted text begin (5) is responsible for the satisfactory completion of the services that the individual has
contracted to perform for the person and is liable for a failure to complete the services;
deleted text end

deleted text begin (6) receives compensation from the person for the services performed under the contract
on a commission or per-job or competitive bid basis and not on any other basis;
deleted text end

deleted text begin (7) may realize a profit or suffer a loss under the contract to perform services for the
person;
deleted text end

deleted text begin (8) has continuing or recurring business liabilities or obligations; and
deleted text end

deleted text begin (9) the success or failure of the individual's business depends on the relationship of
business receipts to expenditures.
deleted text end

deleted text begin An individual who is not registered, if required by section 326B.701, is presumed to be
an employee of a person for whom the individual performs services in the course of the
person's trade, business, profession, or occupation. The person for whom the services were
performed may rebut this presumption by showing that the unregistered individual met all
nine factors in this paragraph at the time the services were performed.
deleted text end

deleted text begin (b) If an individual is an owner or partial owner of a business entity, the individual is
an employee of the person for whom the individual is performing services in the course of
the person's trade, business, profession, or occupation, and is not an employee of the business
entity in which the individual has an ownership interest, unless:
deleted text end

deleted text begin (1) the business entity meets the nine factors in paragraph (a);
deleted text end

deleted text begin (2) invoices and payments are in the name of the business entity; and
deleted text end

deleted text begin (3) the business entity is registered with the secretary of state, if required.
deleted text end

deleted text begin If the business entity in which the individual has an ownership interest is not registered,
if required by section 326B.701, the individual is presumed to be an employee of a person
for whom the individual performs services and not an employee of the business entity in
which the individual has an ownership interest. The person for whom the services were
performed may rebut the presumption by showing that the business entity met the
requirements of clauses (1) to (3) at the time the services were performed.
deleted text end

new text begin (1) was established and maintained separately from and independently of the person for
whom the services were provided or performed;
new text end

new text begin (2) owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space,
or other facilities that are used by the business entity to provide or perform building
construction or improvement services;
new text end

new text begin (3) provides or performs, or offers to provide or perform, the same or similar building
construction or improvement services for multiple persons or the general public;
new text end

new text begin (4) is in compliance with all of the following:
new text end

new text begin (i) holds a federal employer identification number if required by federal law;
new text end

new text begin (ii) holds a Minnesota tax identification number if required by Minnesota law;
new text end

new text begin (iii) has received and retained 1099 forms for income received for building construction
or improvement services provided or performed, if required by Minnesota or federal law;
new text end

new text begin (iv) has filed business or self-employment income tax returns, including estimated tax
filings, with the federal Internal Revenue Service and the Department of Revenue, as the
business entity or as a self-employed individual reporting income earned, for providing or
performing building construction or improvement services, if any, in the previous 12 months;
and
new text end

new text begin (v) has completed and provided a W-9 federal income tax form to the person for whom
the services were provided or performed if required by federal law;
new text end

new text begin (5) is in good standing as defined by section 5.26 and, if applicable, has a current
certificate of good standing issued by the secretary of state pursuant to section 5.12;
new text end

new text begin (6) has a Minnesota unemployment insurance account if required by chapter 268;
new text end

new text begin (7) has obtained required workers' compensation insurance coverage if required by
chapter 176;
new text end

new text begin (8) holds current business licenses, registrations, and certifications if required by chapter
326B and sections 327.31 to 327.36;
new text end

new text begin (9) is operating under a written contract to provide or perform the specific services for
the person that:
new text end

new text begin (i) is signed and dated by both an authorized representative of the business entity and
of the person for whom the services are being provided or performed;
new text end

new text begin (ii) is fully executed no later than 30 days after the date work commences;
new text end

new text begin (iii) identifies the specific services to be provided or performed under the contract;
new text end

new text begin (iv) provides for compensation from the person for the services provided or performed
under the contract on a commission or per-job or competitive bid basis and not on any other
basis; and
new text end

new text begin (v) the requirements of item (ii) shall not apply to change orders;
new text end

new text begin (10) submits invoices and receives payments for completion of the specific services
provided or performed under the written proposal, contract, or change order in the name of
the business entity. Payments made in cash do not meet this requirement;
new text end

new text begin (11) the terms of the written proposal, contract, or change order provide the business
entity control over the means of providing or performing the specific services, and the
business entity in fact controls the provision or performance of the specific services;
new text end

new text begin (12) incurs the main expenses and costs related to providing or performing the specific
services under the written proposal, contract, or change order;
new text end

new text begin (13) is responsible for the completion of the specific services to be provided or performed
under the written proposal, contract, or change order and is responsible, as provided under
the written proposal, contract, or change order, for failure to complete the specific services;
and
new text end

new text begin (14) may realize additional profit or suffer a loss, if costs and expenses to provide or
perform the specific services under the written proposal, contract, or change order are less
than or greater than the compensation provided under the written proposal, contract, or
change order.
new text end

new text begin (b)(1) Any individual providing or performing the services as or for a business entity is
an employee of the person who engaged the business entity and is not an employee of the
business entity, unless the business entity meets all of the requirements under subdivision
4, paragraph (a).
new text end

new text begin (2) Any individual who is determined to be the person's employee is acting as an agent
of and in the interest of the person when engaging any other individual or business entity
to provide or perform any portion of the services that the business entity was engaged by
the person to provide or perform.
new text end

new text begin (3) Any individual engaged by an employee of the person, at any tier under the person,
is also the person's employee, unless the individual is providing or performing the services
as or for a business entity that meets the requirements of subdivision 4, paragraph (a).
new text end

new text begin (4) Clauses (1) to (3) do not create an employee-employer relationship between a person
and an employee at any tier under the person if there is an intervening business entity in the
contractual chain that meets the requirements of subdivision 4, paragraph (a).
new text end

Subd. 7.

Prohibited activities related to independent contractor status.

(a) The
prohibited activities in deleted text begin this subdivision deleted text end new text begin paragraphs (b) and (c) new text end are in addition to deleted text begin those deleted text end new text begin the
activities new text end prohibited in sections 326B.081 to 326B.085.

(b) An individual new text begin providing or performing building construction or improvement services
new text end shall not deleted text begin hold himself or herself out deleted text end new text begin represent themselves new text end as an independent contractor
unless the individual new text begin is operating as a business entity that new text end meets new text begin all new text end the requirements of
subdivision 4 new text begin , paragraph (a) new text end .

(c) A person who provides new text begin or performs building new text end construction new text begin or improvement new text end services
in the course of the person's trade, business, occupation, or profession shall not:

(1) new text begin as a condition of payment for services provided or performed, new text end require an individual
deleted text begin through coercion, misrepresentation, or fraudulent means deleted text end new text begin , who is an employee pursuant to
this section, to register as a construction contractor under section 326B.701, or new text end to adopt new text begin or
agree to being classified, represented, or treated as an new text end independent contractor deleted text begin status deleted text end or form
a business entity new text begin . Each instance of conditioning payment to an individual who is an employee
on one of these conditions shall constitute a separate violation of this provision new text end ;

(2) deleted text begin knowingly misrepresent or misclassify an individual as an independent contractor. deleted text end new text begin
fail to classify, represent, or treat an individual who is an employee pursuant to this section
as an employee in accordance with the requirements of any of the chapters listed in
subdivision 3. Failure to classify, represent, or treat an individual who is an employee
pursuant to this section as an employee in accordance with each requirement of a chapter
listed in subdivision 3 shall constitute a separate violation of this provision;
new text end

new text begin (3) fail to report or disclose to any person or to any local, state, or federal government
agency an individual who is an employee pursuant to subdivision 3, as an employee when
required to do so under any applicable local, state, or federal law. Each failure to report or
disclose an individual as an employee shall constitute a separate violation of this provision;
new text end

new text begin (4) require or request an individual who is an employee pursuant to this section to enter
into any agreement or complete any document that misclassifies, misrepresents, or treats
the individual as an independent contractor or otherwise does not reflect that the individual
is an employee pursuant to this section. Each agreement or completed document shall
constitute a separate violation of this provision; or
new text end

new text begin (5) require an individual who is an employee under this section to register under section
326B.701.
new text end

new text begin (d) In addition to the person providing or performing building construction or
improvement services in the course of the person's trade, business, occupation, or profession,
any owner, partner, principal, member, officer, or agent who engaged in any of the prohibited
activities in this subdivision may be held individually liable.
new text end

new text begin (e) An order issued by the commissioner to a person for engaging in any of the prohibited
activities in this subdivision is in effect against any successor person. A person is a successor
person if the person shares three or more of the following with the person to whom the order
was issued:
new text end

new text begin (1) has one or more of the same owners, members, principals, officers, or managers;
new text end

new text begin (2) performs similar work within the state of Minnesota;
new text end

new text begin (3) has one or more of the same telephone or fax numbers;
new text end

new text begin (4) has one or more of the same email addresses or websites;
new text end

new text begin (5) employs or engages substantially the same individuals to provide or perform building
construction or improvement services;
new text end

new text begin (6) utilizes substantially the same vehicles, facilities, or equipment; or
new text end

new text begin (7) lists or advertises substantially the same project experience and portfolio of work.
new text end

new text begin (f) If a person who has engaged an individual to provide or perform building construction
or improvement services that are in the course of the person's trade, business, profession,
or occupation, classifies, represents, treats, reports, or discloses the individual as an
independent contractor, the person shall maintain, for at least three years, and in a manner
that may be readily produced to the commissioner upon demand, all the information and
documentation upon which the person based the determination that the individual met all
the requirements under subdivision 4, paragraph (a), at the time the individual was engaged
and at the time the services were provided or performed.
new text end

new text begin (g) The following damages and penalties may be imposed for a violation of this section:
new text end

new text begin (1) compensatory damages to the individual the person failed to classify, represent, or
treat as an employee pursuant to this section. Compensatory damages include but are not
limited to the value of supplemental pay including minimum wage; overtime; shift
differentials; vacation pay; sick pay; and other forms of paid time off; health insurance; life
and disability insurance; retirement plans; saving plans and any other form of benefit;
employer contributions to unemployment insurance; Social Security and Medicare and any
costs and expenses incurred by the individual resulting from the person's failure to classify,
represent, or treat the individual as an employee;
new text end

new text begin (2) a penalty of up to $10,000 for each individual the person failed to classify, represent,
or treat as an employee pursuant to this section;
new text end

new text begin (3) a penalty of up to $10,000 for each violation of this subdivision; and
new text end

new text begin (4) a penalty of $1,000 for any person who delays, obstructs, or otherwise fails to
cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure
to cooperate constitutes a separate violation.
new text end

new text begin (h) This section may be investigated and enforced under the commissioner's authority
under state law.
new text end

Subd. 13.

Rulemaking.

The commissioner may, in consultation with the commissioner
of revenue and the commissioner of employment and economic development, adopt, amend,
suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the
commissioner's responsibilities under this section. deleted text begin This subdivision is effective May 26,
2007.
deleted text end

Subd. 15.

Notice and review by commissioners of revenue and employment and
economic development.

When the commissioner has reason to believe that a person has
violated subdivision 7, deleted text begin paragraph (b); or (c), clause (1) or (2), deleted text end the commissioner must notify
the commissioner of revenue and the commissioner of employment and economic
development. Upon receipt of notification from the commissioner, the commissioner of
revenue must review the information returns required under section 6041A of the Internal
Revenue Code. The commissioner of revenue shall also review the submitted certification
that is applicable to returns audited or investigated under section 289A.35.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, except that the
amendments to subdivision 4 are effective for contracts entered into on or after that date
and for all building construction or improvement services provided or performed on or after
January 1, 2025.
new text end

Sec. 9.

new text begin [181.724] INTERGOVERNMENTAL MISCLASSIFICATION
ENFORCEMENT AND EDUCATION PARTNERSHIP ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section and section 181.725 may be cited as the
"Intergovernmental Misclassification Enforcement and Education Partnership Act."
new text end

new text begin Subd. 2. new text end

new text begin Policy and statement of purpose. new text end

new text begin It is the policy of the state of Minnesota to
prevent employers from misclassifying workers, because employee misclassification allows
an employer to illegally evade obligations under state labor, employment, and tax laws,
including but not limited to the laws governing minimum wage, overtime, unemployment
insurance, paid family medical leave, earned sick and safe time, workers' compensation
insurance, temporary disability insurance, the payment of wages, and payroll taxes.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section 181.725, the
following terms have the meanings given, unless the language or context clearly indicates
that a different meaning is intended.
new text end

new text begin (b) "Partnership entity" means one of the following governmental entities with jurisdiction
over employee misclassification in Minnesota:
new text end

new text begin (1) the Department of Labor and Industry;
new text end

new text begin (2) the Department of Revenue;
new text end

new text begin (3) the Department of Employment and Economic Development;
new text end

new text begin (4) the Department of Commerce; and
new text end

new text begin (5) the attorney general in the attorney general's enforcement capacity under sections
177.45 and 181.1721.
new text end

new text begin (c) "Employee misclassification" means the practice by an employer of not properly
classifying workers as employees.
new text end

new text begin Subd. 4. new text end

new text begin Coordination, collaboration, and information sharing. new text end

new text begin For purposes of this
section, a partnership entity:
new text end

new text begin (1) shall communicate with other entities to help detect and investigate instances of
employee misclassification;
new text end

new text begin (2) may request from, provide to, or receive from the other partnership entities data
necessary for the purpose of detecting and investigating employee misclassification, unless
prohibited by federal law; and
new text end

new text begin (3) may collaborate with one another when investigating employee misclassification,
unless prohibited by federal law. Collaboration includes but is not limited to referrals,
strategic enforcement, and joint investigations by two or more partnership entities.
new text end

Sec. 10.

new text begin [181.725] INTERGOVERNMENTAL MISCLASSIFICATION
ENFORCEMENT AND EDUCATION PARTNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Composition. new text end

new text begin The Intergovernmental Misclassification Enforcement and
Education Partnership is composed of the following members or their designees, who shall
serve on behalf of their respective partnership entities:
new text end

new text begin (1) the commissioner of labor and industry;
new text end

new text begin (2) the commissioner of revenue;
new text end

new text begin (3) the commissioner of employment and economic development;
new text end

new text begin (4) the commissioner of commerce; and
new text end

new text begin (5) the attorney general.
new text end

new text begin Subd. 2. new text end

new text begin Meetings. new text end

new text begin The commissioner of labor and industry, in consultation with other
members of the partnership, shall convene and lead meetings of the partnership to discuss
issues related to the investigation of employee misclassification and public outreach.
Members of the partnership may select a designee to attend any such meeting. Meetings
must occur at least quarterly.
new text end

new text begin Subd. 2a. new text end

new text begin Additional meetings. new text end

new text begin (a) In addition to regular quarterly meetings under
subdivision 2, the commissioner of labor and industry, in consultation with members of the
partnership, may convene and lead additional meetings for the purpose of discussing and
making recommendations under subdivision 4a.
new text end

new text begin (b) This subdivision expires July 31, 2025, unless a different expiration date is specified
in law.
new text end

new text begin Subd. 3. new text end

new text begin Roles. new text end

new text begin Each partnership entity may use the information received through its
participation in the partnership to investigate employee misclassification within their relevant
jurisdictions as follows:
new text end

new text begin (1) the Department of Labor and Industry in its enforcement authority under chapters
176, 177, and 181;
new text end

new text begin (2) the Department of Revenue in its enforcement authority under chapters 289A and
290;
new text end

new text begin (3) the Department of Employment and Economic Development in its enforcement
authority under chapters 268 and 268B;
new text end

new text begin (4) the Department of Commerce in its enforcement authority under chapters 45, 60A,
60K, 79, and 79A; and
new text end

new text begin (5) the attorney general in the attorney general's enforcement authority under sections
177.45 and 181.1721.
new text end

new text begin Subd. 4. new text end

new text begin Annual presentation to the legislature. new text end

new text begin At the request of the chairs, the
Intergovernmental Misclassification Enforcement and Education Partnership shall present
annually to members of the house of representatives and senate committees with jurisdiction
over labor. The presentation shall include information about how the partnership carried
out its duties during the preceding calendar year.
new text end

new text begin Subd. 4a. new text end

new text begin First presentation. new text end

new text begin (a) By March 1, 2025, the Intergovernmental
Misclassification Enforcement and Education Partnership shall make its first presentation
to members of the house of representatives and senate committees with jurisdiction over
labor. The first presentation may be made in a form and manner determined by the
partnership. In addition to providing information about how the partnership carried out its
duties in its first year, the presentation shall include the following information and
recommendations, including any budget requests to carry out the recommendations:
new text end

new text begin (1) consider any staffing recommendations for the partnership and each partnership
entity to carry out the duties and responsibilities under this section;
new text end

new text begin (2) provide a summary of the industries, areas, and employers with high numbers of
misclassification violations and recommendations for proactive review and enforcement
efforts;
new text end

new text begin (3) propose a system for making cross referrals between partnership entities;
new text end

new text begin (4) identify cross-training needs and a proposed cross-training plan; and
new text end

new text begin (5) propose a metric or plan for monitoring and assessing:
new text end

new text begin (i) the number and severity of employee misclassification violations; and
new text end

new text begin (ii) the adequacy and effectiveness of the partnership's duties related to employee
misclassification, including but not limited to the partnership's efforts on education, outreach,
detection, investigation, deterrence, and enforcement of employee misclassification.
new text end

new text begin (b) This subdivision expires July 31, 2025, unless a different expiration date is specified
in law.
new text end

new text begin Subd. 5. new text end

new text begin Separation. new text end

new text begin The Intergovernmental Misclassification Enforcement and
Education Partnership is not a separate agency or board and is not subject to chapter 13D.
Data shared or created by the partnership entities under this section or section 181.724 are
subject to chapter 13 and hold the data classification prescribed by law.
new text end

new text begin Subd. 6. new text end

new text begin Duties. new text end

new text begin The Intergovernmental Misclassification Enforcement and Education
Partnership shall:
new text end

new text begin (1) set goals to maximize Minnesota's efforts to detect, investigate, and deter employee
misclassification;
new text end

new text begin (2) share information to facilitate the detection and investigation of employee
misclassification;
new text end

new text begin (3) develop a process or procedure that provides a person with relevant information and
connects them with relevant partnership entities, regardless of which partnership entity that
person contacts for assistance;
new text end

new text begin (4) identify best practices in investigating employee misclassification;
new text end

new text begin (5) identify resources needed for better enforcement of employee misclassification;
new text end

new text begin (6) inform and educate stakeholders on rights and responsibilities related to employee
misclassification;
new text end

new text begin (7) serve as a unified point of contact for workers, businesses, and the public impacted
by misclassification;
new text end

new text begin (8) inform the public on enforcement actions taken by the partnership entities; and
new text end

new text begin (9) perform other duties as necessary to:
new text end

new text begin (i) increase the effectiveness of detection, investigation, enforcement, and deterrence of
employee misclassification; and
new text end

new text begin (ii) carry out the purposes of the partnership.
new text end

new text begin Subd. 7. new text end

new text begin Public outreach. new text end

new text begin (a) The commissioner of labor and industry shall maintain
on the department's website information about the Intergovernmental Misclassification
Enforcement and Education Partnership, including information about how to file a complaint
related to employee misclassification.
new text end

new text begin (b) Each partnership entity shall maintain on its website information about worker
classification laws, including requirements for employers and employees, consequences for
misclassifying workers, and contact information for other partnership entities.
new text end

new text begin Subd. 8. new text end

new text begin No limitation of other duties. new text end

new text begin This section does not limit the duties or
authorities of a partnership entity, or any other government entity, under state law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2022, section 270B.14, subdivision 17, is amended to read:

Subd. 17.

Disclosure to Department of Commerce.

new text begin (a) new text end The commissioner may disclose
to the commissioner of commerce information required to administer the Uniform Disposition
of Unclaimed Property Act in sections 345.31 to 345.60, including the Social Security
numbers of the taxpayers whose refunds are on the report of abandoned property submitted
by the commissioner to the commissioner of commerce under section 345.41. Except for
data published under section 345.42, the information received that is private or nonpublic
data retains its classification, and can be used by the commissioner of commerce only for
the purpose of verifying that the persons claiming the refunds are the owners.

new text begin (b) The commissioner may disclose a return or return information to the commissioner
of commerce under section 45.0135 to the extent necessary to investigate employer
compliance with section 176.181.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2022, section 270B.14, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Disclosure to the attorney general. new text end

new text begin The commissioner may disclose a return
or return information to the attorney general for the purpose of determining whether a
business is an employer and to the extent necessary to enforce section 177.45 or 181.1721.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2022, section 326B.081, subdivision 3, is amended to read:

Subd. 3.

Applicable law.

"Applicable law" means the provisions of sections new text begin 181.165,
181.722, new text end 181.723, 325E.66, 327.31 to 327.36, this chapter, and chapter 341, and all rules,
orders, stipulation agreements, settlements, compliance agreements, licenses, registrations,
certificates, and permits adopted, issued, or enforced by the department under sections
new text begin 181.165, 181.722, new text end 181.723, 325E.66, 327.31 to 327.36, this chapter, or chapter 341.

Sec. 14.

Minnesota Statutes 2022, section 326B.081, subdivision 6, is amended to read:

Subd. 6.

Licensing order.

"Licensing order" means an order issued under section
326B.082, subdivision 12 deleted text begin , paragraph (a) deleted text end .

Sec. 15.

Minnesota Statutes 2022, section 326B.081, subdivision 8, is amended to read:

Subd. 8.

Stop new text begin work new text end order.

"Stop new text begin work new text end order" means an order issued under section
326B.082, subdivision 10.

Sec. 16.

Minnesota Statutes 2022, section 326B.082, subdivision 1, is amended to read:

Subdivision 1.

Remedies available.

The commissioner may enforce all applicable law
under this section. The commissioner may use any enforcement provision in this section,
including the assessment of monetary penalties, against a person required to have a license,
registration, certificate, or permit under the applicable law based on conduct that would
provide grounds for action against a licensee, registrant, certificate holder, or permit holder
under the applicable law. The use of an enforcement provision in this section shall not
preclude the use of any other enforcement provision in this section or otherwise provided
by law. new text begin The commissioner's investigation and enforcement authority under this section may
be used by the commissioner in addition to or as an alternative to any other investigation
and enforcement authority provided by law.
new text end

Sec. 17.

Minnesota Statutes 2022, section 326B.082, subdivision 2, is amended to read:

Subd. 2.

Access to information and property; subpoenas.

(a) In order to carry out the
purposes of the applicable law, the commissioner may:

(1) administer oaths and affirmations, certify official acts, interview, question, take oral
or written statements, new text begin demand data and information, new text end and take depositions;

(2) request, examine, take possession of, test, sample, measure, photograph, record, and
copy any documents, apparatus, devices, equipment, or materials;

(3) at a time and place indicated by the commissioner, request persons to appear before
the commissioner to give testimony new text begin , provide data and information, new text end and produce documents,
apparatus, devices, equipment, or materials;

(4) issue subpoenas to compel persons to deleted text begin appear before the commissioner to deleted text end give
testimony new text begin , provide data and information, new text end and new text begin to new text end produce documents, apparatus, devices,
equipment, or materials; and

(5) with or without notice, enter without delay deleted text begin upon deleted text end new text begin and access all areas of new text end any property,
public or private, for the purpose of taking any action authorized under this subdivision or
the applicable law, including deleted text begin obtaining deleted text end new text begin to request, examine, take possession of, test, sample,
measure, photograph, record, and copy any data, new text end information, deleted text begin remedying deleted text end new text begin documents,
apparatus, devices, equipment, or materials; to interview, question, or take oral or written
statements; to remedy new text end violations deleted text begin , deleted text end new text begin ; new text end or deleted text begin conducting deleted text end new text begin to conduct new text end surveys, inspections, or
investigations.

(b) Persons requested by the commissioner to give testimony new text begin , provide data and
information, new text end or produce documents, apparatus, devices, equipment, or materials shall respond
within the time and in the manner specified by the commissioner. If no time to respond is
specified in the request, then a response shall be submitted within 30 days of the
commissioner's service of the request.

(c) Upon the refusal or anticipated refusal of a property owner, lessee, property owner's
representative, or lessee's representative to permit the commissioner's entry deleted text begin onto deleted text end new text begin and access
to all areas of any new text end property as provided in paragraph (a), the commissioner may apply for
an administrative inspection order in the Ramsey County District Court or, at the
commissioner's discretion, in the district court in the county in which the property is located.
The commissioner may anticipate that a property owner or lessee will refuse entry new text begin and
access to all areas of a property new text end if the property owner, lessee, property owner's representative,
or lessee's representative has refused to permit entry new text begin or access to all areas of a property new text end on
a prior occasion or has informed the commissioner that entry new text begin or access to areas of a property
new text end will be refused. Upon showing of administrative probable cause by the commissioner, the
district court shall issue an administrative inspection order that compels the property owner
or lessee to permit the commissioner to enter new text begin and be allowed access to all areas of new text end the
property for the purposes specified in paragraph (a).

(d) Upon the application of the commissioner, a district court shall treat the failure of
any person to obey a subpoena lawfully issued by the commissioner under this subdivision
as a contempt of court.

Sec. 18.

Minnesota Statutes 2022, section 326B.082, subdivision 4, is amended to read:

Subd. 4.

Fax new text begin or email new text end transmission.

When this section or section 326B.083 permits a
request for reconsideration or request for hearing to be served by fax on the commissioner,
new text begin or when the commissioner instructs that a request for reconsideration or request for hearing
be served by email on the commissioner, new text end the fax new text begin or email new text end shall not exceed 15 new text begin printed new text end pages
in length. The request shall be considered timely served if the fax new text begin or email new text end is received by
the commissioner, at the fax number new text begin or email address new text end identified by the commissioner in the
order or notice of violation, no later than 4:30 p.m. central time on the last day permitted
for faxing new text begin or emailing new text end the request. Where the quality or authenticity of the faxed new text begin or emailed new text end
request is at issue, the commissioner may require the original request to be filed. Where the
commissioner has not identified quality or authenticity of the faxed new text begin or emailed new text end request as
an issue and the request has been faxed new text begin or emailed new text end in accordance with this subdivision, the
person faxing new text begin or emailing new text end the request does not need to file the original request with the
commissioner.

Sec. 19.

Minnesota Statutes 2022, section 326B.082, subdivision 6, is amended to read:

Subd. 6.

Notices of violation.

(a) The commissioner may issue a notice of violation to
any person who the commissioner determines has committed a violation of the applicable
law. The notice of violation must state a summary of the facts that constitute the violation
and the applicable law violated. The notice of violation may require the person to correct
the violation. If correction is required, the notice of violation must state the deadline by
which the violation must be corrected.

new text begin (b) In addition to any person, a notice of violation may be issued to any individual
identified in section 181.723, subdivision 7, paragraph (d). A notice of violation is effective
against any successor person as defined in section 181.723, subdivision 7, paragraph (e).
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The commissioner shall issue the notice of violation by:

(1) serving the notice of violation on the property owner or on the person who committed
the violation; or

(2) posting the notice of violation at the location where the violation occurred.

deleted text begin (c) deleted text end new text begin (d) new text end If the person to whom the commissioner has issued the notice of violation believes
the notice was issued in error, then the person may request reconsideration of the parts of
the notice that the person believes are in error. The request for reconsideration must be in
writing and must be served on, faxed, or emailed to the commissioner at the address, fax
number, or email address specified in the notice of violation by the tenth day after the
commissioner issued the notice of violation. The date on which a request for reconsideration
is served by mail shall be the postmark date on the envelope in which the request for
reconsideration is mailed. If the person does not serve, fax, or email a written request for
reconsideration or if the person's written request for reconsideration is not served on or
faxed to the commissioner by the tenth day after the commissioner issued the notice of
violation, the notice of violation shall become a final order of the commissioner and will
not be subject to review by any court or agency. The request for reconsideration must:

(1) specify which parts of the notice of violation the person believes are in error;

(2) explain why the person believes the parts are in error; and

(3) provide documentation to support the request for reconsideration.

The commissioner shall respond in writing to requests for reconsideration made under
this paragraph within 15 days after receiving the request. A request for reconsideration does
not stay a requirement to correct a violation as set forth in the notice of violation. After
reviewing the request for reconsideration, the commissioner may affirm, modify, or rescind
the notice of violation. The commissioner's response to a request for reconsideration is final
and shall not be reviewed by any court or agency.

Sec. 20.

Minnesota Statutes 2022, section 326B.082, subdivision 7, is amended to read:

Subd. 7.

Administrative orders; correction; assessment of monetary penalties.

(a)
The commissioner may issue an administrative order to any person who the commissioner
determines has committed a violation of the applicable law. The commissioner shall issue
the administrative order by serving the administrative order on the person. The administrative
order may require the person to correct the violation, may require the person to cease and
desist from committing the violation, and may assess monetary new text begin damages and new text end penalties. The
commissioner shall follow the procedures in section 326B.083 when issuing administrative
orders. Except as provided in paragraph (b), the commissioner may issue to each person a
monetary penalty of up to $10,000 for each violation of applicable law committed by the
person. The commissioner may order that part or all of the monetary penalty will be forgiven
if the person to whom the order is issued demonstrates to the commissioner by the 31st day
after the order is issued that the person has corrected the violation or has developed a
correction plan acceptable to the commissioner.

(b) The commissioner may issue an administrative order for failure to correct a violation
by the deadline stated in a new text begin final notice of violation issued under subdivision 6 or a new text end final
administrative order issued under paragraph (a). Each day after the deadline during which
the violation remains uncorrected is a separate violation for purposes of calculating the
maximum monetary penalty amount.

(c) Upon the application of the commissioner, a district court shall find the failure of
any person to correct a violation as required by a new text begin final notice of violation issued under
subdivision 6 or a new text end final administrative order issued by the commissioner under this
subdivision as a contempt of court.

new text begin (d) In addition to any person, an administrative order may be issued to any individual
identified in section 181.723, subdivision 7, paragraph (d). An administrative order shall
be effective against any successor person as defined in section 181.723, subdivision 7,
paragraph (e).
new text end

Sec. 21.

Minnesota Statutes 2022, section 326B.082, subdivision 10, is amended to read:

Subd. 10.

Stop new text begin work new text end orders.

(a) deleted text begin If the commissioner determines based on an inspection
or investigation that a person has violated or is about to violate the applicable law, deleted text end The
commissioner may issue deleted text begin to the person deleted text end a stop new text begin work new text end order requiring deleted text begin the person to cease and
desist from committing the violation deleted text end new text begin cessation of all business operations of a person at one
or more of the person's workplaces and places of business or across all of the person's
workplaces and places of business new text end . new text begin A stop work order may be issued to any person who the
commissioner has determined, based on an inspection or investigation, has violated the
applicable law, has engaged in any of the activities under subdivision 11, paragraph (b), or
section 326B.701, subdivision 5, or has failed to comply with a final notice, final
administrative order, or final licensing order issued by the commissioner under this section
or a final order to comply issued by the commissioner under section 177.27.
new text end

new text begin (b) The stop work order is effective upon its issuance under paragraph (e). The order
remains in effect until the commissioner issues an order lifting the stop work order upon
finding that the person has come into compliance with the applicable law, has come into
compliance with a final order or notice of violation issued by the commissioner, has ceased
and desisted from engaging in any of the activities under subdivision 11, paragraph (b), or
section 326B.701, subdivision 5, and has paid in any remedies, damages, penalties, and
other monetary sanctions, including wages owed to employees under paragraph (j), to the
satisfaction of the commissioner, or if the commissioner or appellate court modifies or
vacates the order.
new text end

new text begin (c) In addition to any person, a stop work order may be issued to any individual identified
in section 181.723, subdivision 7, paragraph (d). The stop work order is effective against
any successor person as defined in section 181.723, subdivision 7, paragraph (e).
new text end

deleted text begin (b) deleted text end new text begin (d) new text end If the commissioner determines that a condition exists on real property that
deleted text begin violates the applicable law deleted text end new text begin is the basis for issuing a stop work order new text end , the commissioner may
new text begin also new text end issue a stop new text begin work new text end order to the owner or lessee of the real property deleted text begin to cease and desist
from committing the violation and to correct the condition that is in violation deleted text end .

deleted text begin (c) deleted text end new text begin (e) new text end The commissioner shall issue the stop work order by:

(1) serving the order on the person deleted text begin who has committed or is about to commit the violation deleted text end ;

(2) posting the order at the location where the violation was committed deleted text begin or is about to be
committed deleted text end or at the location where the deleted text begin violating deleted text end condition exists new text begin that is the basis for issuing
the stop work order new text end ; or

(3) serving the order on any owner or lessee of the real property where the deleted text begin violating
condition exists deleted text end new text begin violations or conditions exist new text end .

deleted text begin (d) deleted text end new text begin (f) new text end A stop new text begin work new text end order shall:

(1) describe the act, conduct, or practice committed deleted text begin or about to be committed, deleted text end or the
condition, and include a reference to the applicable law deleted text begin that the act, conduct, practice, or
condition violates or would violate deleted text end new text begin , the final order or final notice of violation, the provisions
in subdivision 11, paragraph (b); the provisions in section 326B.701, subdivision 5; or
liability under section 181.165, as applicable new text end ; and

(2) provide notice that any person aggrieved by the stop new text begin work new text end order may request a hearing
as provided in paragraph deleted text begin (e) deleted text end new text begin (g) new text end .

deleted text begin (e) deleted text end new text begin (g) new text end Within 30 days after the commissioner issues a stop new text begin work new text end order, any person
aggrieved by the order may request an expedited hearing to review the commissioner's
action. The request for hearing must be made in writing and must be served on new text begin , emailed, new text end
or faxed to the commissioner at the address new text begin , email address, new text end or fax number specified in the
order. If the person does not request a hearing or if the person's written request for hearing
is not served on new text begin , emailed, new text end or faxed to the commissioner on or before the 30th day after the
commissioner issued the stop new text begin work new text end order, the order will become a final order of the
commissioner and will not be subject to review by any court or agency. The date on which
a request for hearing is served by mail is the postmark date on the envelope in which the
request for hearing is mailed. The hearing request must specifically state the reasons for
seeking review of the order. The person who requested the hearing and the commissioner
are the parties to the expedited hearing. The hearing shall be commenced within ten days
after the commissioner receives the request for hearing. The hearing shall be conducted
under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this subdivision.
The administrative law judge shall issue a report containing findings of fact, conclusions
of law, and a recommended order within ten days after the completion of the hearing, the
receipt of late-filed exhibits, or the submission of written arguments, whichever is later.
Any party aggrieved by the administrative law judge's report shall have five days after the
date of the administrative law judge's report to submit written exceptions and argument to
the commissioner that the commissioner shall consider and enter in the record. Within 15
days after receiving the administrative law judge's report, the commissioner shall issue an
order vacating, modifying, or making permanent the stop new text begin work new text end order. The commissioner
and the person requesting the hearing may by agreement lengthen any time periods described
in this paragraph. The Office of Administrative Hearings may, in consultation with the
agency, adopt rules specifically applicable to cases under this subdivision.

deleted text begin (f) deleted text end new text begin (h) new text end A stop new text begin work new text end order issued under this subdivision deleted text begin shall be deleted text end new text begin is new text end in effect until it is
new text begin lifted by the commissioner under paragraph (b) or is new text end modified or vacated by the commissioner
or an appellate court new text begin under paragraph (b) new text end . The administrative hearing provided by this
subdivision and any appellate judicial review as provided in chapter 14 shall constitute the
exclusive remedy for any person aggrieved by a stop order.

new text begin (i) The commissioner may assess a civil penalty of $5,000 per day against a person for
each day the person conducts business operations that are in violation of a stop work order
issued under this section.
new text end

new text begin (j) Once a stop work order becomes final, any of the person's employees affected by a
stop work order issued pursuant to this subdivision shall be entitled to average daily earnings
from the person for up to the first ten days of work lost by the employee because of the
issuance of a stop work order. Lifting of a stop work order may be conditioned on payment
of wages to employees. The commissioner may issue an order to comply under section
177.27 to obtain payment from persons liable for the payment of wages owed to the
employees under this section.
new text end

deleted text begin (g) deleted text end new text begin (k) new text end Upon the application of the commissioner, a district court shall find the failure
of any person to comply with a final stop new text begin work new text end order lawfully issued by the commissioner
under this subdivision as a contempt of court.

new text begin (l) Notwithstanding section 13.39, the data in a stop work order issued under this
subdivision are classified as public data after the commissioner has issued the order.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, for contracts entered
into on or after that date and for all building and construction or improvement services
provided or performed on or after January 1, 2025.
new text end

Sec. 22.

Minnesota Statutes 2022, section 326B.082, subdivision 11, is amended to read:

Subd. 11.

Licensing orders; grounds; reapplication.

(a) The commissioner may deny
an application for a permit, license, registration, or certificate if the applicant does not meet
or fails to maintain the minimum qualifications for holding the permit, license, registration,
or certificate, or has any unresolved violations deleted text begin or deleted text end new text begin , new text end unpaid fees new text begin , new text end or monetary new text begin damages or
new text end penalties related to the activity for which the permit, license, registration, or certificate has
been applied for or was issued.

(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's
permit, license, registration, or certificate, or censure the person holding or acting as
qualifying person for the permit, license, registration, or certificate, if the commissioner
finds that the person:

(1) committed one or more violations of the applicable law;

new text begin (2) committed one or more violations of chapter 176, 177, 181, 181A, 182, 268, 270C,
or 363A;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end submitted false or misleading information to deleted text begin the deleted text end new text begin any new text end state new text begin agency new text end in connection
with activities for which the permit, license, registration, or certificate was issued, or in
connection with the application for the permit, license, registration, or certificate;

deleted text begin (3) deleted text end new text begin (4) new text end allowed the alteration or use of the person's own permit, license, registration, or
certificate by another person;

deleted text begin (4) deleted text end new text begin (5) new text end within the previous five years, was convicted of a crime in connection with
activities for which the permit, license, registration, or certificate was issued;

deleted text begin (5) deleted text end new text begin (6) new text end violated: (i) a final administrative order issued under subdivision 7, (ii) a final
stop new text begin work new text end order issued under subdivision 10, (iii) injunctive relief issued under subdivision
9, or (iv) a consent order new text begin , order to comply, new text end or new text begin other new text end final order deleted text begin of deleted text end new text begin issued by new text end the commissioner new text begin
or the commissioner of human rights, employment and economic development, or revenue new text end ;

deleted text begin (6) deleted text end new text begin (7) delayed, obstructed, or otherwise new text end failed to cooperate with a commissioner's
new text begin investigation, including a new text end request to give testimony, new text begin to provide data and information, new text end to
produce documents, things, apparatus, devices, equipment, or materials, or to new text begin enter and
new text end access new text begin all areas of any new text end property deleted text begin under subdivision 2 deleted text end ;

deleted text begin (7) deleted text end new text begin (8) new text end retaliated in any manner against any employee or person who new text begin makes a complaint,
new text end is questioned by, cooperates with, or provides information to the commissioner deleted text begin or an
employee or agent authorized by the commissioner who seeks access to property or things
under subdivision 2 deleted text end ;

deleted text begin (8) deleted text end new text begin (9) new text end engaged in any fraudulent, deceptive, or dishonest act or practice; or

deleted text begin (9) deleted text end new text begin (10) new text end performed work in connection with the permit, license, registration, or certificate
or conducted the person's affairs in a manner that demonstrates incompetence,
untrustworthiness, or financial irresponsibility.

new text begin (c) In addition to any person, a licensing order may be issued to any individual identified
in section 181.723, subdivision 7, paragraph (d). A licensing order is effective against any
successor person as defined in section 181.723, subdivision 7, paragraph (e).
new text end

deleted text begin (c) deleted text end new text begin (d) new text end If the commissioner revokes or denies a person's permit, license, registration, or
certificate under paragraph (b), the person is prohibited from reapplying for the same type
of permit, license, registration, or certificate for at least two years after the effective date
of the revocation or denial. The commissioner may, as a condition of reapplication, require
the person to obtain a bond or comply with additional reasonable conditions the commissioner
considers necessary to protect the public new text begin , including but not limited to demonstration of
current and ongoing compliance with the laws the violation of which were the basis for
revoking or denying the person's permit, license, registration, or certificate under paragraph
(b) or that the person has ceased and desisted in engaging in activities under paragraph (b)
that were the basis for revoking or denying the person's permit, license, registration, or
certificate under paragraph (b) new text end .

deleted text begin (d) deleted text end new text begin (e) new text end If a permit, license, registration, or certificate expires, or is surrendered, withdrawn,
or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding
under this subdivision within two years after the permit, license, registration, or certificate
was last effective and enter a revocation or suspension order as of the last date on which
the permit, license, registration, or certificate was in effect.

Sec. 23.

Minnesota Statutes 2022, section 326B.082, subdivision 13, is amended to read:

Subd. 13.

Summary suspension.

In any case where the commissioner has issued an
order to revoke, suspend, or deny a license, registration, certificate, or permit under
subdivisions 11, paragraph (b), and 12, the commissioner may summarily suspend the
person's permit, license, registration, or certificate before the order becomes final. The
commissioner shall issue a summary suspension order when the safety of life or property
is threatened or to prevent the commission of fraudulent, deceptive, untrustworthy, or
dishonest acts against the public new text begin , including but not limited to violations of section 181.723,
subdivision 7 new text end . The summary suspension shall not affect the deadline for submitting a request
for hearing under subdivision 12. If the commissioner summarily suspends a person's permit,
license, registration, or certificate, a timely request for hearing submitted under subdivision
12 shall also be considered a timely request for hearing on continuation of the summary
suspension. If the commissioner summarily suspends a person's permit, license, registration,
or certificate under this subdivision and the person submits a timely request for a hearing,
then a hearing on continuation of the summary suspension must be held within ten days
after the commissioner receives the request for hearing unless the parties agree to a later
date.

Sec. 24.

Minnesota Statutes 2022, section 326B.082, is amended by adding a subdivision
to read:

new text begin Subd. 16a. new text end

new text begin Additional penalties and damages. new text end

new text begin Any person who delays, obstructs, or
otherwise fails to cooperate with the commissioner's investigation may be issued a penalty
of $1,000. Each day of delay, obstruction, or failure to cooperate shall constitute a separate
violation.
new text end

Sec. 25.

Minnesota Statutes 2022, section 326B.701, is amended to read:

326B.701 CONSTRUCTION CONTRACTOR REGISTRATION.

Subdivision 1.

Definitions.

The following definitions apply to this section:

new text begin (a) "Building construction or improvement services" means public or private sector
commercial or residential building construction or improvement services.
new text end

deleted text begin (a) deleted text end new text begin (b) new text end "Business entity" means a person deleted text begin other than an individual or a sole proprietor deleted text end new text begin as
that term is defined in paragraph (h), except the term does not include an individual new text end .

new text begin (c) "Commissioner" means the commissioner of labor and industry or a duly designated
representative of the commissioner who is either an employee of the Department of Labor
and Industry or person working under contract with the Department of Labor and Industry.
new text end

new text begin (d) "Day" means calendar day unless otherwise provided.
new text end

new text begin (e) "Department" means the Department of Labor and Industry.
new text end

deleted text begin (b) deleted text end new text begin (f) new text end "Document" or "documents" includes papers; books; records; memoranda; data;
contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings;
records; accounts; files; statements; letters; emails; invoices; bills; notes; and calendars
maintained in any form or manner.

new text begin (g) "Individual" means a human being.
new text end

new text begin (h) "Person" means any individual, sole proprietor, limited liability company, limited
liability partnership, corporation, partnership, incorporated or unincorporated association,
joint stock company, or any other legal or commercial entity.
new text end

Subd. 2.

Applicability; registration requirement.

deleted text begin (a) Persons who perform public or
private sector commercial or residential building construction or improvement services as
described in subdivision 2 must register with the commissioner as provided in this section.
The purpose of registration is to assist the Department of Labor and Industry, the Department
of Employment and Economic Development, and the Department of Revenue to enforce
laws related to misclassification of employees.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end Except as provided in paragraph deleted text begin (c) deleted text end new text begin (b) new text end , any person who new text begin provides or new text end performs
new text begin building new text end construction new text begin or improvement new text end services in the state deleted text begin on or after September 15, 2012, deleted text end new text begin
of Minnesota new text end must register with the commissioner as provided in this section before new text begin providing
or new text end performing new text begin building new text end construction new text begin or improvement new text end services deleted text begin for another person deleted text end . The
requirements for registration under this section are not a substitute for, and do not relieve
a person from complying with, any other law requiring that the person be licensed, registered,
or certified.

deleted text begin (c) deleted text end new text begin (b) new text end The registration requirements in this section do not apply to:

(1) a person who, at the time the person is new text begin providing or new text end performing the new text begin building new text end
construction new text begin or improvement new text end services, holds a current license, certificate, or registration
under chapter 299M or 326B;

deleted text begin (2) a person who holds a current independent contractor exemption certificate issued
under this section that is in effect on September 15, 2012, except that the person must register
under this section no later than the date the exemption certificate expires, is revoked, or is
canceled;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end a person who has given a bond to the state under section 326B.197 or 326B.46;

deleted text begin (4) deleted text end new text begin (3) new text end an employee of the person new text begin providing or new text end performing the new text begin building new text end construction new text begin or
improvement new text end services deleted text begin , if the person was in compliance with laws related to employment of
the individual at the time the construction services were performed deleted text end ;

deleted text begin (5) deleted text end new text begin (4) new text end an architect or professional engineer engaging in professional practice as defined
in section 326.02, subdivisions 2 and 3;

deleted text begin (6) deleted text end new text begin (5) new text end a school district or technical college governed under chapter 136F;

deleted text begin (7) deleted text end new text begin (6) new text end a person providing new text begin or performing building new text end construction new text begin or improvement new text end services
on a volunteer basis, including but not limited to Habitat for Humanity and Builders Outreach
Foundation, and their individual volunteers when engaged in activities on their behalf; or

deleted text begin (8) deleted text end new text begin (7) new text end a person exempt from licensing under section 326B.805, subdivision 6, clause
deleted text begin (5) deleted text end new text begin (4) new text end .

Subd. 3.

Registration application.

(a) Persons required to register under this section
must submit electronically, in the manner prescribed by the commissioner, a complete
application according to deleted text begin paragraphs (b) to (d) deleted text end new text begin this subdivision new text end .

(b) A complete application must include all of the following information new text begin and
documentation new text end about deleted text begin any individual who is registering as an individual or a sole proprietor,
or who owns 25 percent or more of a business entity being registered deleted text end new text begin the person who is
applying for a registration new text end :

(1) the deleted text begin individual's full deleted text end new text begin person's new text end legal name deleted text begin and title at the applicant's business deleted text end ;

new text begin (2) the person's assumed names filed with the secretary of state, if applicable;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the deleted text begin individual's business address and deleted text end new text begin person's new text end telephone number;

deleted text begin (3) the percentage of the applicant's business owned by the individual; and
deleted text end

deleted text begin (4) the individual's Social Security number.
deleted text end

deleted text begin (c) A complete application must also include the following information:
deleted text end

deleted text begin (1) the applicant's legal name; assumed name filed with the secretary of state, if any;
designated business address; physical address; telephone number; and email address;
deleted text end

deleted text begin (2) the applicant's Minnesota tax identification number, if one is required or has been
issued;
deleted text end

deleted text begin (3) the applicant's federal employer identification number, if one is required or has been
issued;
deleted text end

deleted text begin (4) evidence of the active status of the applicant's business filings with the secretary of
state, if one is required or has been issued;
deleted text end

deleted text begin (5) whether the applicant has any employees at the time the application is filed;
deleted text end

deleted text begin (6) the names of all other persons with an ownership interest in the business entity who
are not identified in paragraph (b), and the percentage of the interest owned by each person,
except that the names of shareholders with less than ten percent ownership in a publicly
traded corporation need not be provided;
deleted text end

deleted text begin (7) information documenting compliance with workers' compensation and unemployment
insurance laws;
deleted text end

new text begin (4) the person's email address;
new text end

new text begin (5) the person's business address;
new text end

new text begin (6) the person's physical address, if different from the business address;
new text end

new text begin (7) the legal name, telephone number, and email address of the person's registered agent,
if applicable, and the registered agent's business address and physical address, if different
from the business address;
new text end

new text begin (8) the jurisdiction in which the person is organized, if that jurisdiction is not in
Minnesota, as applicable;
new text end

new text begin (9) the legal name of the person in the jurisdiction in which it is organized, if the legal
name is different than the legal name provided in clause (1), as applicable;
new text end

new text begin (10) all of the following identification numbers, if all of these identification numbers
have been issued to the person. A complete application must include at least one of the
following identification numbers:
new text end

new text begin (i) the person's Social Security number;
new text end

new text begin (ii) the person's Minnesota tax identification number; or
new text end

new text begin (iii) the person's federal employer identification number;
new text end

new text begin (11) evidence of the active status of the person's business filings with the secretary of
state, if applicable;
new text end

new text begin (12) whether the person has any employees at the time the application is filed, and if so,
how many employees the person employs;
new text end

new text begin (13) the legal names of all persons with an ownership interest in the business entity, if
applicable, and the percentage of the interest owned by each person, except that the names
of shareholders with less than ten percent ownership in a publicly traded corporation need
not be provided;
new text end

new text begin (14) information documenting the person's compliance with workers' compensation and
unemployment insurance laws for the person's employees, if applicable;
new text end

new text begin (15) whether the person or any persons with an ownership interest in the business entity
as disclosed under clause (13) have been issued a notice of violation, administrative order,
licensing order, or order to comply by the Department of Labor and Industry in the last ten
years;
new text end

deleted text begin (8) deleted text end new text begin (16) new text end a certification that the deleted text begin person deleted text end new text begin individual new text end signing the application has: reviewed
it; deleted text begin determined deleted text end new text begin asserts new text end that the information new text begin and documentation new text end provided is true and accurate;
and deleted text begin determined deleted text end that the deleted text begin person signing deleted text end new text begin individual new text end is authorized to sign and file the application
as an agent new text begin or authorized representative new text end of the deleted text begin applicant deleted text end new text begin person new text end . The name of the deleted text begin person deleted text end new text begin
individual new text end signing, entered on an electronic application, shall constitute a valid signature
of the agent new text begin or authorized representative new text end on behalf of the deleted text begin applicant deleted text end new text begin person new text end ; and

deleted text begin (9) deleted text end new text begin (17) new text end a signed authorization for the Department of Labor and Industry to verify the
information new text begin and documentation new text end provided on or with the application.

deleted text begin (d) deleted text end new text begin (c) new text end A registered person must notify the commissioner within 15 days after there is a
change in any of the information on the application as approved. This notification must be
provided electronically in the manner prescribed by the commissioner. However, if the
deleted text begin business entity deleted text end structure or legal form of the business entity has changed, the person must
submit a new registration application deleted text begin and registration fee, if any, for the new business entity deleted text end .

deleted text begin (e) The registered deleted text end new text begin (d) A new text end person must deleted text begin remain registered deleted text end new text begin maintain a current and up-to-date
registration new text end while providing new text begin or performing building new text end construction new text begin or improvement new text end services
deleted text begin for another person deleted text end . The provisions of sections 326B.091, 326B.094, 326B.095, and 326B.097
apply to this section. deleted text begin A person with an expired registration shall not provide construction
services for another person if registration is required under this section. deleted text end Registration
application and expiration time frames are as follows:

deleted text begin (1) all registrations issued on or before December 31, 2015, expire on December 31,
2015;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end all registrations issued after December 31, 2015, expire on the following December
31 of each odd-numbered year; and

deleted text begin (3) deleted text end new text begin (2) new text end a person may submit a deleted text begin registration or deleted text end renewal application starting October 1 of
the year the registration expires. If a renewal application is submitted later than December
1 of the expiration year, new text begin the new text end registration may expire before the department has issued or
denied the deleted text begin registration deleted text end new text begin renewal new text end .

Subd. 4.

Website.

(a) The commissioner shall develop and maintain a website on which
deleted text begin applicants for registration deleted text end new text begin persons new text end can submit a registration new text begin or renewal new text end application. The
website shall be designed to receive and process deleted text begin registration deleted text end applications and promptly
issue registration certificates electronically to successful applicants.

(b) The commissioner shall maintain deleted text begin the certificates of registration on the department's
official public website, which shall include deleted text end the following information new text begin on the department's
official public website new text end :

(1) the registered person's legal deleted text begin business deleted text end name, including any assumed name deleted text begin , as deleted text end filed
with the secretary of state;

new text begin (2) the legal names of the persons with an ownership interest in the business entity;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the new text begin registered new text end person's business address deleted text begin designated deleted text end new text begin and physical address, if
different from the business address, provided new text end on the application; and

deleted text begin (3) deleted text end new text begin (4) new text end the effective date of the registration and the expiration date.

Subd. 5.

Prohibited activities related to registration.

(a) The prohibited activities in
this subdivision are in addition to those prohibited in deleted text begin sections 326B.081 to 326B.085 deleted text end new text begin section
326B.082, subdivision 11 new text end .

(b) A person who provides new text begin or performs building new text end construction new text begin or improvement new text end services
deleted text begin in the course of the person's trade, business, occupation, or profession deleted text end shall not:

(1) deleted text begin contract with deleted text end new text begin provide new text end or perform new text begin building new text end construction new text begin or improvement new text end services deleted text begin for
another person deleted text end without deleted text begin first deleted text end being registered new text begin , new text end if required deleted text begin by deleted text end new text begin to be registered under new text end this
section;

new text begin (2) require an individual who is the person's employee to register; or
new text end

deleted text begin (2) contract with or pay deleted text end new text begin (3) engage new text end another person to new text begin provide or new text end perform new text begin building
new text end construction new text begin or improvement new text end services if the other person is new text begin required to be registered under
this section and is new text end not registered deleted text begin if required by subdivision 2. All payments to an unregistered
person for construction services on a single project site shall be considered a single violation deleted text end .
It is not a violation of this clause:

(i) for a person to deleted text begin contract with or pay deleted text end new text begin have engaged new text end an unregistered person if the
unregistered person deleted text begin was registered at the time the contract for construction services was
entered into deleted text end new text begin held a current registration on the date they began providing or performing the
building construction or improvement services new text end ; or

(ii) for a homeowner or business to deleted text begin contract with or pay deleted text end new text begin engage new text end an unregistered person
if the homeowner or business is not in the trade, business, profession, or occupation of
performing building construction or improvement services deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (3) be penalized for violations of this subdivision that are committed by another person.
This clause applies only to violations of this paragraph.
deleted text end

new text begin (c) Each day a person who is required to be registered provides or performs building
construction or improvement services while unregistered shall be considered a separate
violation.
new text end

Subd. 6.

new text begin Investigation and new text end enforcement; remedies; and penalties.

deleted text begin (a) Notwithstanding
the maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum
penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if
the person registers within 30 days of the date of the penalty order.
deleted text end

deleted text begin (b) The penalty for contracting with or paying an unregistered person to perform
construction services in violation of subdivision 5, paragraph (b), clause (2), shall be as
provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive
the penalty for the first violation.
deleted text end

new text begin The commissioner may investigate and enforce this section under the authority in chapters
177 and 326B.
new text end

deleted text begin Subd. 7. deleted text end

deleted text begin Notice requirement. deleted text end

deleted text begin Notice of a penalty order for failure to register must
include a statement that the penalty shall be forgiven if the person registers within 30 days
of the date of the penalty order.
deleted text end

Subd. 8.

Data classified.

Data in applications and any required documentation submitted
to the commissioner under this section are private data on individuals or nonpublic data as
defined in section 13.02 deleted text begin . Data in registration certificates issued by the commissioner are
public data; deleted text end except deleted text begin that deleted text end new text begin for the new text end registration information published on the department's website
deleted text begin may be accessed for registration verification purposes only deleted text end . Data that document a new text begin suspension,
new text end revocation new text begin , new text end or cancellation of a deleted text begin certificate deleted text end new text begin registration new text end are public data. deleted text begin Upon request of deleted text end new text begin
Notwithstanding its classification as private data on individuals or nonpublic data, data in
applications and any required documentation submitted to the commissioner under this
section may be used by the commissioner to investigate and take enforcement action related
to laws for which the commissioner has enforcement responsibility and the commissioner
may share data and documentation with new text end the Department of Revenue new text begin , the Department of
Commerce, the Department of Human Rights, new text end or the Department of Employment and
Economic Development deleted text begin , deleted text end new text begin . new text end The commissioner may release to the deleted text begin requesting department deleted text end new text begin
departments new text end data classified as private or nonpublic under this subdivision or investigative
data that are not public under section 13.39 that relate to deleted text begin the issuance or denial of applications
or revocations of certificates deleted text end new text begin prohibited activities under this section and section 181.723 new text end .

ARTICLE 10

MINORS APPEARING IN INTERNET CONTENT

Section 1.

Minnesota Statutes 2022, section 181A.03, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Online platform. new text end

new text begin "Online platform" means any public-facing website, web
application, or digital application, including a mobile application. Online platform includes
a social network, advertising network, mobile operating system, search engine, email service,
monetization platform to sell digital services, streaming service, paid subscription, or Internet
access service.
new text end

Sec. 2.

Minnesota Statutes 2022, section 181A.03, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Content creation. new text end

new text begin "Content creation" means content shared on an online
platform in exchange for compensation.
new text end

Sec. 3.

Minnesota Statutes 2022, section 181A.03, is amended by adding a subdivision to
read:

new text begin Subd. 7b. new text end

new text begin Content creator. new text end

new text begin "Content creator" means an individual or individuals 18
years of age or older, including family members, who create video content performed in
Minnesota in exchange for compensation, and includes any proprietorship, partnership,
company, or other corporate entity assuming the name or identity of a particular individual
or individuals, or family members, for the purposes of that content creator. Content creator
does not include a person under the age of 18 who produces their own video content.
new text end

Sec. 4.

new text begin [181A.13] COMPENSATION FOR INTERNET CONTENT CREATION.
new text end

new text begin Subdivision 1. new text end

new text begin Minors featured in content creation. new text end

new text begin (a) Except as otherwise provided
in this section, a minor is considered engaged in the work of content creation when the
following criteria are met at any time during the previous 12-month period:
new text end

new text begin (1) at least 30 percent of the content creator's compensated video content produced within
a 30-day period included the likeness, name, or photograph of any minor. Content percentage
is measured by the percentage of time the likeness, name, or photograph of a minor or if
more than one minor regularly appears in the creator's content, any of the minors, visually
appears or is the subject of an oral narrative in a video segment as compared to the total
length of the segment; and
new text end

new text begin (2) the number of views received per video segment on any online platform met the
online platform's threshold for generating compensation or the content creator received
actual compensation for video content equal to or greater than $0.01 per view.
new text end

new text begin (b) A minor under the age of 14 is prohibited from engaging in the work of content
creation as provided in paragraph (a). If a minor under the age of 14 is featured by a content
creator, the minor shall receive 100 percent of the proceeds of the creator's compensation
for the content they have appeared in, less any amount owed to another minor.
new text end

new text begin (c) A minor who is at least age 14 but under the age of 18 may produce, create, and
publish their own content and is entitled to all compensation for their own content creation.
A minor engaged in the work of content creation as the producer, creator, and publisher of
content must also follow the requirements in paragraph (b).
new text end

new text begin (d) A minor who appears incidentally in a video that depicts a public event that a
reasonable person would know to be broadcast, including a concert, competition, or sporting
event, and is published by a content creator is not considered a violation of this section.
new text end

new text begin Subd. 2. new text end

new text begin Records required. new text end

new text begin (a) All video content creators whose content features a
minor engaged in the work of content creation shall maintain the following records and
retain the records until the minor reaches the age of 21:
new text end

new text begin (1) the name and documentary proof of the age of the minor engaged in the work of
content creation;
new text end

new text begin (2) the amount of content creation that generated compensation as described in subdivision
1 during the reporting period;
new text end

new text begin (3) the total number of minutes of content creation for which the content creator received
compensation during the reporting period;
new text end

new text begin (4) the total number of minutes a minor was featured in content creation during the
reporting period;
new text end

new text begin (5) the total compensation generated from content creation featuring a minor during the
reporting period; and
new text end

new text begin (6) the amount deposited into the trust account for the benefit of the minor engaged in
the work of content creation as required by subdivision 3.
new text end

new text begin (b) The records required by this subdivision must be readily accessible to the minor for
review. The content creator shall provide notice to the minor of the existence of the records.
new text end

new text begin Subd. 3. new text end

new text begin Trust required. new text end

new text begin (a) A minor who is engaged in the work of content creation
consistent with this section must be compensated by the content creator. The content creator
must set aside gross earnings on the video content that includes the likeness, name, or
photograph of the minor in a trust account to be preserved for the benefit of the minor until
the minor reaches the age of majority, according to the following distribution:
new text end

new text begin (1) if only one minor meets the content threshold described in subdivision 1, the
percentage of total gross earnings on any video segment, including the likeness, name, or
photograph of the minor that is equal to or greater than half of the content percentage that
includes the minor as described in subdivision 1; or
new text end

new text begin (2) if more than one minor meets the content threshold described in subdivision 1 and
a video segment includes more than one of those minors, the percentage described in clause
(1) for all minors in any segment must be equally divided between the minors regardless
of differences in percentage of content provided by the individual minors.
new text end

new text begin (b) A trust account required under this section must, at a minimum, provide that:
new text end

new text begin (1) the money in the account is available only to the minor engaged in the work of content
creation;
new text end

new text begin (2) the account is held by a bank, corporate fiduciary, or trust company, as those terms
are defined in chapter 48A;
new text end

new text begin (3) the money in the account becomes available to the minor engaged in the work of
content creation upon the minor attaining the age of 18 years or upon a declaration that the
minor is emancipated; and
new text end

new text begin (4) that the account meets the requirements of chapter 527, the Uniform Transfers to
Minors Act.
new text end

new text begin (c) If a content creator knowingly or recklessly violates this section, a minor satisfying
the criteria described in subdivision 1 may commence a civil action to enforce the provisions
of this section regarding the trust account. In any action brought in accordance with this
section, the court may award the following damages:
new text end

new text begin (1) actual damages including any compensation owed under this section;
new text end

new text begin (2) punitive damages; and
new text end

new text begin (3) the costs of the action, including attorney fees and litigation costs.
new text end

new text begin (d) This section does not affect a right or remedy available under any other law of the
state.
new text end

new text begin (e) Nothing in this section shall be interpreted to have any effect on a party that is neither
the content creator nor the minor who engaged in the work of content creation.
new text end

new text begin Subd. 4. new text end

new text begin Civil cause of action; violations. new text end

new text begin (a) Along with the civil action provided in
subdivision 3, paragraph (c), the minor may commence a civil action against the content
creator for damages, injunctive relief, and any other relief the court finds just and equitable
to enforce this section.
new text end

new text begin (b) The attorney general may enforce subdivision 1, pursuant to section 8.31, and may
recover costs and fees.
new text end

new text begin Subd. 5. new text end

new text begin Content removal. new text end

new text begin Content containing the likeness of a child must be deleted
and removed from any online platform by the individual who posted the content, the account
owner, or another person who has control over the account when the request is made by a
minor age 13 or older whose likeness appears in the content, or by an adult who was under
the age of 18 when their likeness was used in the content.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: H5217-1

116J.398 BROADBAND PREVAILING WAGE EXEMPTION.

Notwithstanding any other law to the contrary, section 116J.871 does not apply to a project receiving a grant under section 116J.395 for the construction, installation, remodeling, and repair of last-mile infrastructure, as defined under section 116J.394, paragraph (e).

179.81 DEFINITIONS.

Subdivision 1.

Scope.

For the purposes of sections 179.81 to 179.85, the terms defined in this section have the meanings given them.

Subd. 2.

Area labor-management committee or committee.

"Area labor-management committee" or "committee" means a committee formed by and composed of multiple employers and multiple labor organizations within a geographic area or statewide employment sector, for the purpose of improving labor-management relations and enhancing economic development within a given geographic jurisdiction or sector through labor-management cooperation.

Subd. 3.

Bureau.

"Bureau" means the Bureau of Mediation Services.

Subd. 4.

Commissioner.

"Commissioner" means the commissioner of the Bureau of Mediation Services.

179.82 GRANT PROGRAM CREATED; APPLICATIONS.

Subdivision 1.

Creation.

An area labor-management committee grant program is created within the bureau to be administered by the commissioner.

Subd. 2.

Rules.

Applications for area/statewide industry labor-management committee grants must be submitted to the bureau under rules adopted by the commissioner.

179.83 ACTION ON APPLICATION.

Subdivision 1.

Standard for approval.

Following an established calendar, the commissioner shall review the applications. Grants must be awarded on a competitive basis based on the appropriateness of the proposal, the attainability of the goals, the evidence of interest in the proposal among representatives of labor and management in the area within the committee's jurisdiction, and the thoroughness of the financial plan presented. Successful applicants shall be notified of the award no later than December 1 of each year.

179.84 GENERAL CONDITIONS AND TERMS OF GRANTS.

Subdivision 1.

Requirements.

For each grant awarded the commissioner shall:

(1) require an approved work plan that establishes measurable goals and objectives for the committee within the committee's area of responsibility and that prohibits the committee from becoming involved in contract disputes, labor negotiations, or grievance procedures; and

(2) annually review the operating performance of each area labor-management committee receiving state money under this program.

179.85 FUNDING LIMITATIONS.

A new or existing area labor-management committee may apply for a maximum grant of $75,000 per year. A new or existing area labor-management committee may be awarded state grant money, and must provide money from other nonstate sources, in the following ratio of state and nonstate money: in the first year, 90 percent state and ten percent nonstate; in the second year, 80 percent state and 20 percent nonstate; in the third year and beyond, 50 percent state and 50 percent nonstate.

Repealed Minnesota Rule: H5217-1

5520.0100 APPLICATION.

Parts 5520.0100 to 5520.0800 apply to the preparation, submission, and approval of applications for grants under the Minnesota Area Labor-Management Committee Grant Program.

5520.0110 POLICY.

Parts 5520.0100 to 5520.0800 shall be liberally construed to accomplish the provisions and purposes of the Minnesota Area Labor-Management Committee Grant Program.

5520.0120 DEFINITIONS.

Subpart 1.

Scope.

For the purpose of parts 5520.0100 to 5520.0800, the terms defined in this part have the meanings given them.

Subp. 2.

Application.

"Application" means a written request for grant funds completed on a form developed by and available from the bureau.

Subp. 3.

Bureau.

"Bureau" means the Minnesota Bureau of Mediation Services.

Subp. 4.

Commissioner.

"Commissioner" means the commissioner of the bureau or an authorized agent.

Subp. 5.

Area Labor-Management Committee or committee.

"Area Labor-Management Committee" or "committee" means an organization of representatives from multiple labor organizations and multiple employer enterprises within a geographic area or statewide employment sector which has as its principle purpose the strengthening of union-management relations within the area or sector.

Subp. 6.

Grant program.

"Grant program" means the Minnesota Area Labor-Management Committee Grant Program, as created in Minnesota Statutes, sections 179.81 to 179.85.

Subp. 7.

Office of Cooperative Labor-Management Programs.

"Office of Cooperative Labor-Management Programs" means the office within the bureau created to administer the grant program.

Subp. 8.

[Repealed, 15 SR 2267]

5520.0200 GRANT APPLICATIONS.

Subpart 1.

Scope.

The procedures in this part will be used by the commissioner in receiving and considering grant program applications.

Subp. 2.

Notice and deadline.

On or before September 1 of each calendar year, the commissioner shall publish a notice of the availability of funds under the grant program in the State Register. An application for a grant must be submitted to the bureau by October 15 of the previous year.

Subp. 3.

Application form and purpose.

Each application must be on forms available from the bureau and must include a statement of purpose and a description of the Area Labor-Management Committee requesting grant funds. All current committee members and officers must be identified in the application and a brief description of the committee's existing or proposed operating procedures must be included. A copy of the committee bylaws, if adopted, must also accompany the application.

Subp. 4.

Statement of goals.

The application must include a descriptive statement of the labor-management climate and major issues or problems existing in the committee's area of jurisdiction, as well as the major purpose or goal of the committee in the context of the problems. The goal statement must describe specific changes or outcomes the committee seeks to accomplish through use of grant program funds. Quantifiable, specific goal and problem statements are encouraged. Applicants should avoid broad, generic, overly-generalized statements.

Subp. 5.

Methodology.

The application must include a description of the approach and methodology to be used by the committee in solving the problems and achieving the goals identified in subpart 4. The application must include an implementation plan setting forth specific and measurable goals and objectives to be accomplished during the grant period, the major action steps to be taken, a timetable indicating when those action steps will be taken, and when goals and objectives will be accomplished.

Subp. 6.

Financial plan.

The application must include a four-year financial plan detailing the revenues and expenditures anticipated over a four-year period, commencing with the year for which the grant is being requested. The plan must identify the total amount of state funding necessary to carry out the committee's goals and objectives and the money to be raised from other sources to meet the guidelines of the grant program. The plan must be accompanied by a proposed committee budget over the four-year period detailing how all money, including state grant money, is to be expended. Existing committees must also submit copies of actual financial statements for the four-year period preceding the proposed grant period.

5520.0250 GRANT RESTRICTIONS.

Subpart 1.

Labor negotiations, grievances, or disputes.

No committee funded, in whole or in part, through the grant program may engage in activities directly or indirectly related to labor negotiations, contract disputes, or grievance procedures. Violation of this subpart is grounds for termination of the grant.

Subp. 2.

Prior obligations.

No grant money may be used directly or indirectly to cover costs incurred before the effective date of the grant nor to cover costs that are not specifically related to the goals in the application. No finder's fee or other form of payment for successful application shall be permitted in conjunction with the grant program.

Subp. 3.

[Repealed, 15 SR 2267]

Subp. 4.

Delegation or transfer.

A successful applicant may not, in whole or in part, delegate or transfer responsibility for the management of the grant or control and use of its funds to any other organization or entity.

5520.0300 GRANT PERIOD AND AMOUNT.

Subpart 1.

Grant period.

All grants are awarded for a 12-month period commencing January 1.

Subp. 2.

Amount.

The amount of each grant will be determined by the commissioner after considering the merits and reasonableness of each application, the total funds available in relationship to the total amounts requested, prior awards and experiences with individual applicants, the usual and customary costs of operating a committee, and the overall purposes and goals of the program.

Subp. 3.

Ratio of state and nonstate funds.

Regardless of the funds available, no grant will be awarded that would be inconsistent with the following ratio of state and nonstate revenues for the committee: (Year 1 is the first year state funds are received under this program, Year 2 is the second, etc.).

	Percent Nonstate Revenues	Percent State Revenues
Year 1	10	90
Year 2	20	80
Year 3 & Beyond	50	50

5520.0500 APPLICATION REVIEW PROCEDURES.

Subpart 1.

Competitive basis.

All timely and complete applications will be reviewed on a competitive basis. Grants will be awarded by the commissioner in amounts and to parties as deemed consistent with the overall purposes of the grant program. In evaluating applications and awarding grants, the factors described in this part will be considered.

Subp. 2.

Appropriateness.

The appropriateness of the proposal must be evaluated. Appropriateness includes:

A.

consistency of the proposal's purpose with the public policy objectives of the grant program;

B.

the extent and history of labor-management activity within the area to be served by the proposed grant;

C.

other past or present cooperative labor-management activities within the designated area;

D.

the need for public funding of the endeavor; and

E.

the reasonableness of proposed expenditures in relationship to benefits to be derived.

Subp. 3.

Attainability of goals.

The attainability of the goals in the proposal must be evaluated. Attainability includes:

A.

ability of the applicant to articulate quantifiable and meaningful goals and activities;

B.

evaluation of the applicant's ability and capacity to implement program activities necessary to achieve stated goals;

C.

prior success of the applicant in achieving previous program goals;

D.

other labor-management activities in the area; and

E.

the relationship of the proposed goals with the overall objectives of the grant program.

Subp. 4.

Support for the proposal.

Evidence of support for the proposal from multiple labor-management representatives within the area will be reviewed. The evidence may be submitted in the form of letters of endorsement, resolutions of support adopted by ad hoc groups, or other form that permits consultation and verification with individual representatives by the bureau. Established committees must attach a copy of the minutes of the meeting at which the proposal was approved and the minutes should reflect the names and organizations of all persons present for the meeting.

Subp. 5.

Financial plans.

The thoroughness of the four-year financial plan submitted as a part of the proposal, including an analysis of the overall reasonableness of revenue and expense projections; the detail and reasonableness of projected funding sources and amounts; and the detail and reasonableness of projected expenditures will be considered. Established committees must attach copies of actual financial operating statements that reflect annual revenue sources and amounts and expense categories and amounts for each year of the three-year period preceding the current year, as well as for the current year-to-date.

Subp. 6.

Work plans.

The thoroughness of detailed plans for achieving the major goals and objectives of the committee will be evaluated to determine the ability of the committee to identify key tasks and action steps necessary to the attainment of goals; the designation of appropriate time frames; relevance of work plans to objectives of the grant program; and the extent of planning undertaken by the applicant with regard to its goals.

Subp. 7.

[Repealed, 15 SR 2267]

5520.0520 WORK PLAN.

Each grant application must include a work plan that describes the major work steps to be undertaken by the committee during the grant period in achieving its individual goals and objectives. Work plans should describe each area of substantial program activity contemplated by the committee, the key steps necessary to achieving each program activity, and a time frame for determining progress in each activity area. Grantees are responsible for compliance with their work plans and for advising the Office of Cooperative Labor-Management Programs of any significant alterations in the goals, objectives, or work plans of the committee. Written quarterly reports, describing the progress and problems in adhering to the work plan, must accompany financial reports in conformance to the provisions of part 5520.0560.

5520.0540 BUDGET ADJUSTMENTS.

Grant recipients must consult, in writing, with the Office of Cooperative Labor-Management Programs before making budget adjustments that:

A.

result in changes in the scope or objectives of the program in the approved application;

B.

result in more grant money available than is necessary to meet the needs of the program;

C.

result in a change in the percent of state funds available to the grantee that would be inconsistent with part 5520.0300, subpart 3, or Minnesota Statutes, section 179.85; or

D.

amount to ten percent or more of the total grant awarded.

5520.0560 QUARTERLY REPORTS.

Each grant recipient must file detailed financial and activity reports on a quarterly basis in accordance with the following schedule:

A.

Period covered: January 1 to March 31, date due: April 20;

B.

Period covered: April 1 to June 30, date due: July 20;

C.

Period covered: July 1 to September 30, date due: October 20; and

D.

Period covered: October 1 to December 31, date due: January 20.

5520.0600 ACCOUNTING SYSTEM.

Each grant recipient must establish and maintain a system of financial management of the grant that complies with accepted accounting practices. The system must provide accurate, current, and complete information on the financial status of each grant-supported activity and must include the generation of periodic reports indicating the allocation of funds by activity, the amount expended, and the amount obligated. Each dollar of Area Labor-Management Committee Grant Program money must be traceable through the accounting system.

All accounting documents must be supported by source documentation such as payroll records, invoices, and purchase vouchers. All employees paid in whole or in part from grant funds must prepare time sheets reflecting the number of hours worked on grant activities during the pay period and the payroll must be based on these time sheets. Any purchase of services agreement entered into by the committee must specify the amount and nature of services to be provided in a manner that facilitates determination of an hourly or per-unit rate for those services.

5520.0620 AUDITS.

Subpart 1.

Financial and compliance audits.

All grant recipients must arrange for and undergo a financial and compliance audit at least once every two years. The audits must be performed by qualified individuals who are independent of those persons who authorize, manage, and carry out the expenditure of funds to ensure unbiased opinions, conclusions, or judgments. Grant recipients are responsible for arranging and paying for these audits. The purpose of the audit is to report on whether:

A.

the financial operations have been conducted properly;

B.

financial and other reports submitted as a part of the program have been presented fairly and accurately;

C.

the grantee has complied with applicable laws, regulations, and policies;

D.

resources are used and managed in an economic and efficient manner; and

E.

program objectives and results are being effectively and economically achieved.

Normal accepted auditing methods and standards must be applied in the performance of this audit. Should an auditor become aware of irregularities in financial or programmatic performance, the auditor must promptly notify the commissioner of those irregularities and, if appropriate, higher grantee management officials than the level at which irregularities appear to lie.

Subp. 2.

Audit reports.

A written audit report shall be prepared and include:

A.

a statement of the standards used in the performance of the audit;

B.

financial statements and audit comments on the statements for the period;

C.

audit comments regarding compliance and internal control; and

D.

comments regarding the accuracy and completeness of financial and program reports filed by the grantee.

Three copies of the written audit report must be provided to the commissioner and a copy shall be made available to each member of the committee.

5520.0700 INITIAL PAYMENTS.

No grant payments will be issued until the grant application and required work plans have received final approval by the commissioner and a written grant contract has been executed and approved.

5520.0710 SUBSEQUENT PAYMENTS.

Subsequent grant payments will be made on a quarterly basis based on submission of a payment request form and other required reports. When computing requests for payment, the recipient should first apply any unused portions of a previous grant payment toward the next month's anticipated expenditures.

5520.0800 TERMINATION OF GRANTS.

Subpart 1.

General.

Grants shall be suspended, terminated, or withdrawn, in whole or in part, by the commissioner if funds provided are used in a manner inconsistent with the policies of parts 5520.0100 to 5520.0800, or if it appears that funds are being used in a manner inconsistent with the stated goals and purpose of the grant application or approved amendments. Grants shall also be suspended, terminated, or withdrawn if it appears that the applicant is unable or unwilling to fulfill responsibilities set forth in the application.

Subp. 2.

Notice.

In the event the commissioner believes that there is reason to suspend, terminate, or withdraw a grant, the commissioner shall provide written notice to the grant recipient stating the nature of the contemplated action, the anticipated effective date, and the reasons for the action. The grant recipient may submit a written response to the notice within five working days of receipt of the notice from the commissioner. After investigating the situation, including any information provided by the committee in response to the commissioner's notice, the commissioner shall determine final action with regard to suspension, termination, or withdrawal of the grant. The commissioner shall provide written notice of the final determination to all interested parties.