HF 3980

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/18/2024 03:50pm

A bill for an act
relating to labor and industry; making policy and technical changes to the
apprenticeship program; amending Minnesota Statutes 2022, sections 13.7905, by
adding a subdivision; 178.011, subdivision 9; 178.012, subdivision 1; 178.035,
subdivisions 2, 4, 6, 7; 178.036, subdivisions 3, 4, 5, 6, 7; 178.044, subdivision 3;
178.07, subdivisions 1, 3; 178.09, subdivision 2; 178.091, subdivisions 2, 4, by
adding subdivisions; 178.10; Minnesota Statutes 2023 Supplement, section 178.01;
proposing coding for new law in Minnesota Statutes, chapter 178; repealing
Minnesota Statutes 2022, section 178.036, subdivision 10; Minnesota Rules, part
5200.0400.

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

Section 1.

Minnesota Statutes 2022, section 13.7905, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Apprentice data. new text end

new text begin Apprentice data reported to, maintained by, or collected by
the department is governed by section 178.071.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 178.01, is amended to read:

178.01 PURPOSES.

The purposes of this chapter are: to open to all people regardless of race, new text begin color, creed,
religion, national origin, new text end sex, deleted text begin creed, color or national origin deleted text end new text begin gender identity, sexual
orientation, marital status, familial status, disability, status with regard to public assistance,
or age new text end , the opportunity to obtain training and on-the-job learning that will equip them for
profitable employment and citizenship; to establish as a means to this end, a program of
voluntary apprenticeship under approved apprenticeship agreements providing facilities for
their training and guidance in the arts, skills, and crafts of industry and trade or occupation,
with concurrent, supplementary instruction in related subjects; to promote apprenticeship
opportunities under conditions providing adequate training and on-the-job learning and
reasonable earnings; to relate the supply of skilled workers to employment demands; to
establish standards for apprentice training; to establish an Apprenticeship new text begin Advisory new text end Board
deleted text begin and apprenticeship committees deleted text end to assist in effectuating the purposes of this chapter; to
provide for a Division of Apprenticeship within the Department of Labor and Industry; deleted text begin to
provide for reports to the legislature regarding the status of apprentice training in the state; deleted text end
to establish a procedure for the determination of apprenticeship agreement controversies;
and to accomplish related ends.

Sec. 3.

Minnesota Statutes 2022, section 178.011, subdivision 9, is amended to read:

Subd. 9.

Journeyworker.

"Journeyworker" means a person who has attained a level of
skill, abilities, and competencies recognized within an industry as having mastered the skills
and competencies required for the trade or occupation. new text begin Use of the term may also refer to a
mentor, technician, specialist, or other skilled worker who has documented sufficient skills
and knowledge of an occupation, either through formal apprenticeship or through practical
on-the-job experience and formal training.
new text end

Sec. 4.

Minnesota Statutes 2022, section 178.012, subdivision 1, is amended to read:

Subdivision 1.

Apprenticeship rules.

Federal regulations governing apprenticeship deleted text begin in
effect on January 18, 2017 deleted text end , as provided by Code of Federal Regulations, title 29, parts 29,
sections 29.1 to 29.6 and 29.11, and 30, are the apprenticeship rules in this state, subject to
amendment by this chapter or by rule under section 178.041.

Sec. 5.

Minnesota Statutes 2022, section 178.035, subdivision 2, is amended to read:

Subd. 2.

Provisional approval.

The division shall grant a provisional approval period
of one year to an applicant demonstrating that the standards submitted meet the requirements
of this chapter. The division may review each program granted provisional approval for
quality and for conformity with the requirements of this section and section 178.036 at any
time, but not less than biannually, during the provisional approval period. After review:

(1) a program that conforms with the requirements of this chapter:

(i) may be deleted text begin approved deleted text end new text begin made permanent new text end ; or

(ii) may continue to be provisionally approved through the first full training cycle; and

(2) a program not in operation or not conforming with the requirements of this chapter
during the provisional approval period shall be deregistered.

The division shall inform the applicant of the results of its review in writing at least 30 days
prior to the expiration of the provisional approval period.

Sec. 6.

Minnesota Statutes 2022, section 178.035, subdivision 4, is amended to read:

Subd. 4.

Program modification.

To apply for modification of or change to a registered
program, a sponsor shall submit a written request for modification to the division. The
division shall approve or disapprove a modification request within 90 days from the date
of receipt. If approved, the modification or change must be recorded and acknowledged
within 90 days of its approval as an amendment to the registered program. If not approved,
the division shall notify the sponsor in writing of the disapproval and the reasons for the
disapproval. The division may provide technical assistance to a sponsor seeking to modify
or change a registered program. new text begin The division may require program modification to ensure
standards of apprenticeship that comply with the requirements of Code of Federal
Regulations, title 29, part 29, section 29.5, and this chapter.
new text end

Sec. 7.

Minnesota Statutes 2022, section 178.035, subdivision 6, is amended to read:

Subd. 6.

Certificate.

Upon deleted text begin registration deleted text end new text begin provisional approval new text end of a program, the
commissioner shall issue a certificate of registration to the sponsor. Within deleted text begin 30 deleted text end new text begin 45 new text end days after
the certificate is mailed or otherwise delivered to the sponsor, the sponsor must submit to
the commissioner a copy of at least one executed apprenticeship agreement.

Sec. 8.

Minnesota Statutes 2022, section 178.035, subdivision 7, is amended to read:

Subd. 7.

Policy requirement.

It must be the policy of the employer and sponsor that
the recruitment, selection, employment, and training of apprentices during their
apprenticeship must be without discrimination due to race, color, creed, religion, national
origin, sex, new text begin gender identity, new text end sexual orientation, marital status, deleted text begin physical or mental deleted text end new text begin familial
status, new text end disability, deleted text begin receipt of deleted text end new text begin status with regard to new text end public assistance, or age. The employer
and sponsor must take affirmative action to provide equal opportunity in apprenticeship
and must operate the apprenticeship program as required under Code of Federal Regulations,
title 29, part 30, and under the Minnesota plan for equal opportunity in apprenticeship.

Sec. 9.

Minnesota Statutes 2022, section 178.036, subdivision 3, is amended to read:

Subd. 3.

Related instruction.

A minimum of 144 hours of related instruction is required
deleted text begin in deleted text end each deleted text begin training cycle deleted text end new text begin year new text end . At least 50 hours of related safety instruction is required during
the term of apprenticeship. Time spent in related instruction cannot be considered as hours
of work as required by the deleted text begin job deleted text end new text begin work new text end process schedule. new text begin Related instruction must be designated
in hours for each individual trade or occupation included in the standards. new text end Every
apprenticeship instructor must meet the Department of Education's requirements for a
deleted text begin vocational-technical deleted text end new text begin career and technical education new text end instructor or be a subject matter expert,
which is an individual such as a journeyworker who is recognized within an industry as
having expertise in a specific trade or occupation.

Sec. 10.

Minnesota Statutes 2022, section 178.036, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Job deleted text end new text begin Work new text end process schedule.

Each deleted text begin time-based deleted text end apprenticeship program must
include not less than 2,000 hours of reasonably continuous employment.

Sec. 11.

Minnesota Statutes 2022, section 178.036, subdivision 5, is amended to read:

Subd. 5.

Ratios.

If the apprentice is covered by a collective bargaining agreement, the
employer must follow the provisions of the collective bargaining agreement regarding the
maximum number of apprentices to be employed at the work site for each journeyworker
employed at the same work site. In the absence of a collective bargaining agreement, for
the purposes of direct supervision and the safety and instruction of the apprentice, the ratio
shall be:

(1) one apprentice for deleted text begin the first deleted text end new text begin each new text end journeyworker employed at the work site deleted text begin plus one
apprentice for each additional three journeyworkers employed at the work site; deleted text end new text begin , except that
for occupations in the building and construction trades or any hazardous occupation as
defined by section 181A.04, subdivision 5, one apprentice for the first journeyworker
employed at the work site plus one apprentice for each additional three journeyworkers
employed at the work site;
new text end

(2) the work site ratio utilized by the majority of registered apprenticeship agreements
in the same trade or occupation; or

(3) a program-specific ratio that has been approved by the Apprenticeship Advisory
Board.

Sec. 12.

Minnesota Statutes 2022, section 178.036, subdivision 6, is amended to read:

Subd. 6.

Graduated schedule of wages.

The graduated schedule of wages for an
apprenticeship program shall be calculated as a percentage of the journeyworker rate in the
majority of registered apprenticeship agreements in the same trade or occupation in the
state. If there are no registered apprenticeship agreements in the same trade or occupation,
the graduated schedule of wages may be determined by the sponsor new text begin with the approval of
the division new text end .

Sec. 13.

Minnesota Statutes 2022, section 178.036, subdivision 7, is amended to read:

Subd. 7.

Probationary period.

The standards must provide a period of probation of not
more than deleted text begin 500 hours of employment and instruction extending over not more than four
months deleted text end new text begin one year or 25 percent of the length of the program, whichever is shorter new text end , during
which time the apprenticeship agreement shall be terminated by the director upon written
request of either party, and providing that after such probationary period the apprenticeship
agreement may be terminated by the director by mutual agreement of all parties thereto, or
terminated by the director for good and sufficient reason.

Sec. 14.

Minnesota Statutes 2022, section 178.044, subdivision 3, is amended to read:

Subd. 3.

Journeyworker wage rate.

If the apprentice is not covered by a collective
bargaining agreement, the journeyworker wage rate upon which the apprenticeship agreement
graduated schedule of wages is calculated shall be:

(1) the most current Minnesota state prevailing wage rate determination for the same
trade or occupation in the county in which the apprentice's employer is located. If an
apprenticeship agreement deleted text begin entered into after January 1, 2015, deleted text end does not specify fringe benefits,
the journeyworker wage rate upon which the apprentice wage rate is calculated must be the
total rate listed in the wage determination; or

(2) if there is no Minnesota prevailing wage rate determination for the same trade or
occupation in the county in which the apprentice's employer is located, the journeyworker
wage may be determined by the sponsor with the approval of the division.

Sec. 15.

Minnesota Statutes 2022, section 178.07, subdivision 1, is amended to read:

Subdivision 1.

Approval required.

(a) The division shall approve, if it determines that
it is in the best interest of the apprentice, an apprenticeship agreement new text begin prepared by the
sponsor on a form provided by the commissioner new text end that meets the standards established in
this section.

(b) deleted text begin All terminations, cancellations, and transfers of apprenticeship agreements shall be
approved by the division in writing. deleted text end The division must be notified in writing by the sponsor
within 45 days of all terminations, cancellations, or transfer of apprenticeship agreements.

Sec. 16.

Minnesota Statutes 2022, section 178.07, subdivision 3, is amended to read:

Subd. 3.

Contents.

Every apprenticeship agreement entered into under this chapter shall
contain:

(1) the names of the contracting parties, and the signatures required by subdivision 2;

(2) the date of birth, and information as to the race new text begin , ethnicity, new text end and sex of the apprentice,
and, on a voluntary basis, the apprentice's Social Security number new text begin , disability status, and
veteran status new text end ;

(3) contact information of the sponsor and the division;

(4) a statement of the trade or occupation which the apprentice is to be taught, the date
on which the apprenticeship will begin, and the number of hours to be spent by the apprentice
in work and the number of hours to be spent in concurrent, related instruction;

(5) a statement of the wages to be paid the apprentice under sections 178.036, subdivision
6, and 178.044, as applicable;

(6) a statement listing any fringe benefits to be provided to the apprentice;

(7) a statement incorporating as part of the agreement the registered standards of the
apprenticeship program on the date of the agreement and as they may be amended during
the period of the agreement;

(8) a statement that the apprentice will be accorded equal opportunity in all phases of
apprenticeship employment and training, without discrimination due to race, color, creed,
religion, national origin, sex, new text begin gender identity, new text end sexual orientation, marital status, deleted text begin physical or
mental deleted text end new text begin familial status, new text end disability, deleted text begin receipt of deleted text end new text begin status with regard to new text end public assistance, or age;
and

(9) such additional terms and conditions as may be prescribed or approved by the
commissioner not inconsistent with the provisions of this chapter.

Sec. 17.

new text begin [178.071] APPRENTICE DATA.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin "Apprentice data" means data on individuals collected,
maintained, used, or disseminated because an individual has applied for or has been submitted
for registration as an apprentice with the Division of Apprenticeship, or is currently or has
been registered as an apprentice with the Division of Apprenticeship.
new text end

new text begin Subd. 2. new text end

new text begin Classification. new text end

new text begin Apprentice data are private data on individuals.
new text end

new text begin Subd. 3. new text end

new text begin Data sharing. new text end

new text begin Apprentice data may be shared with a state agency for the purpose
of determining compliance with section 116J.871 or 177.41 to 177.44. The division may
provide apprentice data to the United States Department of Labor.
new text end

Sec. 18.

Minnesota Statutes 2022, section 178.09, subdivision 2, is amended to read:

Subd. 2.

Determination; appeal.

Within 90 days after the receipt of a complaint, the
division must issue a determination. The determination of the division shall be filed with
the commissioner and written notice shall be served on all parties affected by it. Any person
aggrieved by any determination or action of the director may appeal to the commissioner.
If no appeal is filed with the commissioner within deleted text begin ten deleted text end new text begin 15 new text end days of the date of service, the
division's determination shall become the final order of the commissioner. If an appeal is
filed, the commissioner shall appoint and convene a hearing board to be composed of three
members of the Apprenticeship Advisory Board appointed under section 178.02, one member
being a representative of an employer organization, one representative being a member of
an employee organization, and one member representing the general public. The board shall
hold a hearing on the appeal after due notice to the interested parties and shall submit to the
commissioner findings of fact and a recommended decision accompanied by a memorandum
of the reasons for it. Within 30 days after submission, the commissioner may adopt the
recommended decision of the board, or disregard the recommended decision of the board
and prepare a decision based on the findings of fact and accompanied by a memorandum
of reasons for that decision. Written notice of the commissioner's determination and order
shall be served on all parties affected by it. Any person aggrieved by the commissioner's
determination and order under this section is entitled to judicial review under sections 14.63
to 14.68 in the same manner that a person aggrieved by a final decision in a contested case
is entitled to judicial review. The commissioner's determination and order under this section
shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.

Sec. 19.

Minnesota Statutes 2022, section 178.091, subdivision 2, is amended to read:

Subd. 2.

Grounds.

(a) The commissioner may deregister a registered apprenticeship
program or deny an application for registration if:

(1) the program does not comply with any requirement of Code of Federal Regulations,
title 29, part 29 or deleted text begin 32 deleted text end new text begin 30 new text end , this chapter, or any rule adopted pursuant to section 178.041;

(2) the program does not have at least one registered apprentice in each trade or
occupation, except for the following specified periods of time:

(i) within the first deleted text begin 30 deleted text end new text begin 45 new text end days after the date a program is registered; or

(ii) within one year of the date that a program graduates an apprentice in a trade or
occupation and the date of registration for the next apprentice in that trade or occupation;
or

(3) the program is not conducted, operated, or administered in accordance with the
program's registered standards or with the requirements of this chapter, including but not
limited to:

(i) failure to provide on-the-job learning;

(ii) failure to provide related instruction;

(iii) failure of an employer to pay the apprentice a progressively increasing schedule of
wages consistent with the apprentice's skills acquired; or

(iv) persistent and significant failure to perform successfully.

(b) The commissioner may deregister an apprenticeship program at the written request
of the sponsor in a manner consistent with the provisions of Code of Federal Regulations,
title 29, part 29, section 29.8(a).

Sec. 20.

Minnesota Statutes 2022, section 178.091, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Orders; hearings related to orders deleted text end new text begin Corrective action new text end .

deleted text begin (a) deleted text end If the commissioner
determines that a registered apprenticeship program should be deregistered or that an
application for registration should be denied, the commissioner shall issue to and serve on
the sponsor deleted text begin an order deregistering the program's registration or denying the application for
registration. deleted text end new text begin a notice to correct containing the following:
new text end

deleted text begin (b) An order issued under this subdivision must specify:
deleted text end

(1) the deficiency and the required remedy or corrective action;

(2) the time period to effectuate the required remedy or corrective action, which shall
be new text begin no less than 30 days and new text end no more than deleted text begin 90 deleted text end new text begin 60 new text end days; and

(3) any other requirement consistent with Code of Federal Regulations, title 29, part 29,
section 29.8(b).

deleted text begin (c) The sponsor to whom the commissioner issues an order under this subdivision may
appeal to a hearing board appointed consistent with section 178.09, subdivision 2.
deleted text end

Sec. 21.

Minnesota Statutes 2022, section 178.091, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Denial of application. new text end

new text begin If an applicant for registration does not take the required
corrective action within the allotted time, the commissioner may deny the application for
registration.
new text end

Sec. 22.

Minnesota Statutes 2022, section 178.091, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Order of deregistration. new text end

new text begin If the registered apprenticeship program does not
take the required corrective action within the allotted time, the commissioner may issue an
order of deregistration containing the following:
new text end

new text begin (1) that certain deficiencies were identified in the notice to correct and the registered
apprenticeship program did not take the required corrective action;
new text end

new text begin (2) based on the deficiencies stated in the notice to correct and the failure of the registered
apprentice program to remedy those deficiencies, a determination has been made that there
is reasonable cause to deregister the program;
new text end

new text begin (3) that the registered apprenticeship program may appeal this determination within 15
days to the commissioner consistent with subdivision 7; and
new text end

new text begin (4) that, if the registered apprenticeship program does not appeal the determination, the
order becomes final.
new text end

Sec. 23.

Minnesota Statutes 2022, section 178.091, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Appeal. new text end

new text begin Any person aggrieved by an order of deregistration may appeal to the
commissioner. If no appeal is filed with the commissioner within 15 days of the date of
service, the order of deregistration shall become the final order of the commissioner. If an
appeal is filed, the commissioner shall appoint and convene a hearing board to be composed
of three members of the Apprenticeship Advisory Board appointed under section 178.02,
one member being a representative of an employer organization, one representative being
a member of an employee organization, and one member representing the general public.
The board shall hold a hearing on the appeal after due notice to the interested parties and
shall submit to the commissioner findings of fact and a recommended decision accompanied
by a memorandum of the reasons for the recommended decision. Within 30 days after
submission, the commissioner may adopt the recommended decision of the board, or
disregard the recommended decision of the board and prepare a decision based on the
findings of fact and accompanied by a memorandum of reasons for that decision. Written
notice of the commissioner's determination and order shall be served on all parties affected
by the commissioner's determination. Any person aggrieved by the commissioner's
determination and order under this section is entitled to judicial review under sections 14.63
to 14.68 in the same manner that a person aggrieved by a final decision in a contested case
is entitled to judicial review. The commissioner's determination and order under this section
shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.
new text end

Sec. 24.

Minnesota Statutes 2022, section 178.10, is amended to read:

178.10 LIMITATION.

(a) The provisions of this chapter shall have no application to those individuals who are
apprenticed by the commissioner of corrections pursuant to sections 242.43 and 242.44.

(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:

(1) any apprenticeship provision in any collective bargaining agreement between
employers and employees establishing higher apprenticeship standards; or

(2) any special provision for veterans, deleted text begin minority persons deleted text end new text begin people of color, individuals with
a disability new text end , or women, in the standards, apprentice qualifications, or operation of the program
or in the apprenticeship agreement which is not otherwise prohibited by law.

Sec. 25. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Rules, part 5200.0400, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2022, section 178.036, subdivision 10, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 24-05283

178.036 STANDARDS OF APPRENTICESHIP.

Subd. 10.

Training cycle.

The training cycle for related instruction must be designated in hours, days, or months for each individual trade or occupation included in the standards.

Repealed Minnesota Rule: 24-05283

5200.0400 APPRENTICESHIP COMMITTEE RULES.

Adoption of apprenticeship committee rules or changes must be submitted to the director of the division in writing for approval.