1.1A bill for an act1.2relating to labor and industry; modifying boiler provisions; amending and 1.3imposing civil and criminal penalties;amending Minnesota Statutes 2008, 1.4sections 326B.94, as amended; 326B.954; 326B.956; 326B.958; 326B.961, 1.5as added if enacted; 326B.964; 326B.966; 326B.97; 326B.98; 326B.986, 1.6subdivision 10; 326B.99; 326B.994, subdivision 3; 326B.998; Minnesota 1.7Statutes 2009 Supplement, sections 326B.972; 326B.986, subdivisions 2, 8; 1.8326B.988; proposing coding for new law in Minnesota Statutes, chapter 326B; 1.9repealing Minnesota Statutes 2008, sections 326B.952; 326B.96, subdivision 1; 1.10326B.962; 326B.968; 326B.982; 326B.996; Minnesota Rules, parts 5225.1400; 1.115225.3100; 5225.3150; 5225.3200.1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.13    Section 1. Minnesota Statutes 2008, section 326B.94, as amended by Laws 2009, 1.14chapter 78, article 5, section 26, is amended to read:1.15326B.94 BOATS; MASTERS.1.16    Subdivision 1. Boat. "Boat" means any vessel navigating inland waters of the state 1.17that is propelled by machinery or sails, and is carrying more than six passengers for hire, 1.18and is 21 feet or more in length.1.19    Subd. 2. Number of passengers. The department shall designate the number of 1.20passengers that each boat may safely carry, and no such boat shall carry a greater number 1.21than is allowed by the inspector's certificate.1.22    Subd. 3. Annual permit. The commissioner shall issue an annual permit to a 1.23boat for the purpose of carrying passengers for hire on the inland waters of the state 1.24provided the boat satisfies the inspection requirements of this section. A boat subject 1.25to inspection under this chapter shall be registered with the department and shall be 1.26inspected before a permit may be issued. No person shall operate a boat or cause a boat to 1.27be operated for the purpose of carrying passengers for hire on the inland waters of the 2.1state without a valid annual permit issued under this section. Boats operating with a 2.2current inspection certificate issued by the United States Coast Guard are exempt from 2.3the inspection requirements of this section.2.4    Subd. 4. Examinations, licensing. Every individual who operates a boat must 2.5hold a current master's license issued by the commissioner, unless the individual holds 2.6a valid, current Charter Boat Captain's license issued by the United States Coast Guard. 2.7The commissioner shall develop and administer an examination for all masters of boats 2.8carrying passengers for hire on the inland waters of the state as to their qualifications and 2.9fitness. If found qualified and competent to perform their duties as a master of a boat 2.10carrying passengers for hire, they shall be issued a license authorizing them to act as such 2.11on the inland waters of the state. All initial master's licenses shall be for two years. The 2.12commissioner shall in a manner determined by the commissioner, without the need for 2.13any rulemaking under chapter 14, phase in the renewal of master's licenses from one year 2.14to two years. By June 30, 2011, all renewed master's licenses shall be two-year licenses. 2.15Fees for the original issue and renewal of the license authorized under this section shall be 2.16pursuant to section 
         326B.986, subdivision 2.2.17    Subd. 5. Rules. (a) The department shall prescribe rules for the inspection of the 2.18hulls, machinery, boilers, steam connections, firefighting apparatus, lifesaving appliances, 2.19and lifesaving equipment of all power boats navigating the inland waters of the state, 2.20which shall conform to the requirements and specifications of the United States Coast 2.21Guard in similar cases as provided in Code of Federal Regulations, title titles 33 and 46, 2.22and COMDTINST M16672.2D, as applicable to inland waters; these rules shall have 2.23the force of law.2.24    (b) The commissioner shall make such rules for inspection and operation of boats 2.25subject to inspection under this chapter, the licensing of masters, and the navigation of any 2.26such boat as will require its operation without danger to life or property. For purposes of 2.27this subdivision, the term "COMDTINST M16672.2D" means United States Department 2.28of Homeland Security, United States Coast Guard, Navigation Rules: International-Inland, 2.29as forwarded by Commandant Instruction M16672.2D, dated March 25, 1999, with any 2.30corrections or revisions. 2.31    Subd. 6. Drugs, alcohol. No master shall be under the influence of illegal drugs 2.32or alcohol when on duty.2.33    Sec. 2. [326B.95] DEFINITIONS.2.34    Subdivision 1.Scope.The definitions in this section apply to sections 326B.93 2.35to 326B.998.3.1    Subd. 2.Authorized inspector."Authorized inspector" means a national board 3.2commissioned inspector who has been examined and found qualified to inspect the 3.3construction and repair of boilers and pressure vessels, and holds a current certificate 3.4of competency.3.5    Subd. 3.Certificate of competency."Certificate of competency" means a certificate 3.6issued by the department to allow national board commissioned inspectors to perform 3.7boiler and pressure vessel inspections within the state.3.8    Subd. 4.Certificate of inspection."Certificate of inspection" means a sticker 3.9attached to the boiler or pressure vessel which documents the month and year of the 3.10inspection and the employer of the inspector performing the inspection.3.11    Subd. 5.Certificate of registration."Certificate of registration" means a document 3.12that has been made available on the department's Web site that lists all registered boilers 3.13and pressure vessels at a location, including the last inspection date, the certificate 3.14expiration date, and the maximum allowable working pressure for each boiler or pressure 3.15vessel.3.16    Subd. 6.High pressure boiler."High pressure boiler" means a boiler operating at 3.17a steam or other vapor pressure in excess of 15 psig, or a water or other liquid boiler in 3.18which the pressure exceeds 160 psig or the temperature exceeds 250 degrees Fahrenheit.3.19    Subd. 7.Inspection due date."Inspection due date" means the last possible date 3.20that the inspection can be completed within the time limits in this chapter.3.21    Subd. 8.Insurance company boiler inspector."Insurance company boiler 3.22inspector" means a national board commissioned inspector who holds a current certificate 3.23of competency.3.24    Subd. 9.Low-pressure boiler."Low-pressure boiler" means a boiler operating at 3.25a steam or other vapor pressure of 15 psig or less, or a water or other liquid boiler in 3.26which the pressure does not exceed 160 psig and the temperature does not exceed 250 3.27degrees Fahrenheit.3.28    Subd. 10.National board."National board" means the National Board of Boiler 3.29and Pressure Vessel Inspectors, which is an organization comprised of chief inspectors 3.30for the states, cities, and territories of the United States and provinces and territories 3.31of Canada.3.32    Subd. 11.National board commissioned inspector."National board commissioned 3.33inspector" means an individual who has been examined and found qualified to inspect 3.34in-service boilers and pressure vessels by the national board, and who holds a current 3.35commission issued by the national board.4.1    Subd. 12.National Board Inspection Code."National Board Inspection Code" or 4.2"NBIC" means a three-part technical document that is written and published by the national 4.3board detailing the installation, inspection and repair of boilers and pressure vessels.4.4    Subd. 13.Operation."Operation" means the on-site act of manipulating, 4.5monitoring, and testing of boilers and their appurtenances by a properly licensed engineer 4.6or an apprentice under the direct supervision of the properly licensed engineer.4.7    Subd. 14.Psig."Psig" means pounds per square inch gauge.4.8    Subd. 15.Remote monitoring."Remote monitoring" means the act of viewing or 4.9overseeing the boiler or boiler plant operating parameters and conditions from a remote 4.10location.4.11    Subd. 16.Repair."Repair" means the work necessary to restore a boiler or 4.12pressure vessel to a safe and satisfactory operating condition, as defined in National Board 4.13Inspection Code, part 3, section 9.4.14    Subd. 17.State boiler inspector."State boiler inspector" means a national board 4.15commissioned boiler inspector who holds a current certificate of competency and a current 4.16chief grade A boiler operator's license.4.17    Sec. 3. Minnesota Statutes 2008, section 326B.954, is amended to read:4.18326B.954 BOILER INSPECTOR LICENSE.4.19    Each boiler inspector employed by the department shall be licensed in this state as a 4.20chief grade A engineer, and must hold a national board commission as a boiler inspector 4.21within 12 months of being employed as a boiler inspector by the department. An inspector 4.22shall not be interested in the manufacture or sale of boilers or steam machinery or in any 4.23patented article required or generally used in the construction of engines or, boilers, or 4.24pressure vessels, or their appurtenances.4.25    Sec. 4. Minnesota Statutes 2008, section 326B.956, is amended to read:4.26326B.956 STEAM FARM TRACTION ENGINES; SHOW BOILERS AND 4.27ENGINES HISTORICAL BOILERS.4.28    Subdivision 1. Definition. For the purpose of sections 
         326B.952326B.93 to 4.29326B.998
         , the terms "show boiler" and "hobby boiler" are synonymous and meanterm 4.30"historical boiler" means a boiler that is used only for display and demonstration purposes. 4.31The terms "historical boiler," "show boiler," "steam farm traction engine," and "hobby 4.32boiler" are synonymous. In recognition of the historical significance of show boilers in 4.33maintaining a working reminder of Minnesota's agricultural, transportation, and lumber 4.34industries, show boilers and engines are considered to be historical artifacts.5.1    Subd. 2. Inspection.When used for display and demonstration purposes, steam 5.2farm traction engines, portable and stationary show engines and portable and stationary 5.3show boilers (a) Historical boilers shall be inspected every two years according to law.5.4All historical boilers shall be inspected by ultrasonic examination and hydrostatic testing, 5.5alternating the type of inspection every two years. Any historical boiler not previously 5.6inspected in Minnesota shall be subject to both ultrasonic examination and hydrostatic 5.7testing prior to operation unless the historical boiler has a current operating certificate 5.8under paragraph (d).5.9    (b) Except as provided in paragraph (d), historical boilers must display a certificate 5.10of inspection issued by the department before use.5.11    (a) Show boilers or engines not certified in Minnesota shall be inspected thoroughly 5.12by a boiler inspector certified to inspect boilers in Minnesota, using inspection standards 5.13in paragraph (b), before being certified for use in Minnesota.5.14    (b) (c) Standards for inspection of show historical boilers shall be those established 5.15by the National Board Inspection Code ANSI/NB23 and by the rules adopted by the 5.16department and as follows:5.17    (1) the boiler shall may be subjected to the appropriate method other methods of 5.18nondestructive examination, at the owner's expense, as deemed necessary by the boiler 5.19inspector to determine soundness and safety of the boiler;5.20    (2) the boiler shall be tested by ultrasonic examination for metal thickness (for 5.21purposes of calculating the maximum allowable working pressure the thinnest reading 5.22shall be used and a safety factor of six shall be used in calculating maximum allowable 5.23working pressure on all non-ASME-code hobby and show boilers); if a historical boiler 5.24has any longitudinal cracks in riveted longitudinal seams, the vessel shall be sealed and 5.25not approved for use in Minnesota. If the historical boiler is jacketed, the jacket must be 5.26removed prior to inspection; and5.27    (3) repairs and alterations made to show historical boilers must be made pursuant to 5.28section 326B.966. the National Board Inspection Code ANSI/NB34.5.29    (c) Further each such object shall successfully complete an inspection of:5.30    (1) the fusible plug;5.31    (2) the safety valve, which must be of ASME approved design and set at the 5.32maximum allowable working pressure and sealed in an appropriate manner not allowing 5.33tampering with the valve setting without destroying the seal; and5.34    (3) the boiler power piping.6.1    Any longitudinal cracks found in riveted longitudinal seams requires that the vessel 6.2be sealed and not approved for use in Minnesota. If the boiler or show engine is jacketed, 6.3the jacket must be removed prior to inspection.6.4(d) If a historical boiler has not been inspected in Minnesota and has a current 6.5operating certificate issued by another state or Canadian province, then that historical 6.6boiler can be operated in Minnesota without inspection in Minnesota as long as:6.7(1) the chief boiler inspector has determined that the requirements for certification 6.8in the other state or Canadian province are equal to or greater than the requirements for 6.9certification in Minnesota;6.10(2) the historical boiler displays the certificate from the other state or Canadian 6.11province; and6.12(3) the historical boiler is not operated in Minnesota for more than two years without 6.13inspection in Minnesota.6.14    Subd. 3. Inspection fees. The fee for inspecting traction engines, show boilers, and 6.15show engines historical boilers shall be the hourly rate pursuant to section 
         326B.986, 6.16subdivision 4
         .6.17    Subd. 4.  Licenses.When a historical boiler is in operation at any location that is 6.18open to the public, an individual licensed under this subdivision or exempt from licensure 6.19under this subdivision must be in attendance at the boiler at all times. A license to operate 6.20steam farm traction engines, portable and stationary show engines, and portable and 6.21stationary show historical boilers shall be issued to an applicant who: 6.22    (1) is 16 years of age or older; 6.23    (2) has a licensed second class grade A or higher class engineer or steam traction 6.24(hobby) engineer sign provided to the commissioner an affidavit attesting to the applicant's 6.25competence in operating these devices historical boilers and attesting that the applicant 6.26has demonstrated the ability to perform each task on the a list, developed and approved by 6.27the chief boiler inspector, of tasks associated with the operation of the devices;historical 6.28boilers. The affidavit shall be signed by a licensed historical boiler engineer or an engineer 6.29licensed as second class grade A or higher;6.30    (3) has at least 50 hours of operating experience on the devices, eight hours of which 6.31must be operating the boiler under load, and up to 16 hours of which may be satisfied by 6.32attendance at a school of instruction in operating the devices; 6.33    (4) passes a written test for competence in operating the devices; and 6.34    (5) pays the required fee. 6.35A license is valid for the lifetime of the licensee unless revoked for cause. A onetime fee 6.36pursuant to section 
         326B.986, subdivision 5, shall be charged for the license. 7.1    Subd. 5. Exemption. Exemptions.(a) Any licensed steam engineer may operate 7.2steam farm traction engines, portable and stationary show engines and portable and 7.3stationary show historical boilers, subject to the apparatus equipment and horsepower 7.4restrictions limitations set forth in the license section 326B.978, without obtaining a 7.5license under subdivision 4.7.6(b) Any individual who holds a current historical boiler operator license issued by 7.7another state or Canadian province may operate historical boilers in Minnesota if the 7.8chief boiler inspector has determined that the requirements under which the individual 7.9obtained licensure in the other state or Canadian province are equal to or greater than the 7.10requirements for an applicant making application in Minnesota for a historical boiler 7.11license.7.12    Subd. 6.Licensed operator; presence required.An operator licensed under this 7.13section must be present when a traction engine, portable or stationary show engine, or 7.14portable or stationary show boiler is in operation and a member of the public is present.7.15    Sec. 5. Minnesota Statutes 2008, section 326B.958, is amended to read:7.16326B.958 INSPECTION AND REGISTRATION.7.17    Subdivision 1. Inspection.(a) Every owner, lessee, or other person having charge 7.18of boilers or pressure vessels subject to inspection under sections 
         326B.956 to 
         326B.9987.19shall cause them to be inspected by the department. Except as provided in sections 7.20326B.956 and 326B.96, boilers subject to inspection under sections 326B.956 to 326B.9987.21must be inspected at least annually and pressure vessels inspected at least every two 7.22years. The commissioner shall assess a $250 penalty per applicable boiler or pressure 7.23vessel for failure to have the inspection required by this section and may seal the boiler 7.24or pressure vessel for refusal to allow an inspection as required by this section. unless 7.25specifically excepted by section 326B.988 or 326B.99. Inspectors shall subject all boilers 7.26to a thorough internal and external examination according to the standards in sections 7.27326B.964 and 326B.966.7.28(b) Anyone who installs a boiler must ensure that the boiler is inspected by the 7.29department after installation is complete and before the boiler is placed in operation. 7.30Inspection fees pursuant to section 326B.986, associated with this initial inspection are 7.31the responsibility of the installer.7.32(c) The owner of a boiler must ensure that the boiler is inspected at least annually 7.33after the initial inspection, except as provided in sections 326B.956 and 326B.96.7.34(d) The owner of a pressure vessel not specifically excepted by section 326B.988 7.35must ensure that the pressure vessel is inspected at least every two years.8.1(e) The fees under section 326B.986 for inspections conducted by the department 8.2under paragraphs (c) and (d) shall be the responsibility of the owner of the boiler or 8.3pressure vessel.8.4    Subd. 1a.Certificate of inspection.After inspecting the boiler or pressure vessel, 8.5the boiler inspector shall document the condition of the boiler or pressure vessel. If the 8.6boiler or pressure vessel meets the inspection requirements in sections 326B.964 and 8.7326B.966, the inspector shall attach a label or sticker to the boiler or pressure vessel 8.8indicating the month and year inspected and the name of the inspection agency. This label 8.9is the inspection certificate and shall indicate that the inspected boiler or pressure vessel is 8.10found to be safe and suitable for use. The boiler inspector shall directly attach a tag to a 8.11newly installed boiler that displays a unique identification number.8.12    Subd. 1b.Defects in boilers or pressure vessels.If, upon inspecting a boiler or 8.13pressure vessel, the boiler inspector determines that the boiler or pressure vessel does not 8.14meet the requirements in sections 326B.964 and 326B.966, the inspector shall notify the 8.15owner or operator in writing of any defect in the boiler or pressure vessel. The boiler or 8.16pressure vessel shall not be operated if the inspector determines that the boiler or pressure 8.17vessel is unsafe. The boiler or pressure vessel shall not be operated until these unsafe 8.18defects have been corrected and verified by the inspector. If the boiler inspector finds that 8.19a boiler is being operated by an unlicensed or improperly licensed person, operation of the 8.20boiler shall cease until all operators are properly licensed according to section 326B.978. 8.21If circumstances warrant continued operation, the boiler inspector may, at the discretion 8.22of the boiler inspector, give approval for continuing operation of the boiler for a specific 8.23period of time, not to exceed 30 days.8.24    Subd. 2. Registration. Every owner, lessee, or other person having charge of 8.25boilers a boiler or pressure vessels vessel subject to inspection under sections 
         326B.9528.26326B.93 to 
         326B.998, except hobby historical boilers under section 
         326B.956, shall 8.27register said objects the boiler or pressure vessel with the department at the time of the 8.28initial inspection described in subdivision 1. The registration shall be renewed annually 8.29and is applicable to each object separately. The fee for registration of a boiler or pressure 8.30vessel shall be pursuant to section 326B.986, subdivision 9. The department may issue 8.31a billing statement for each boiler and pressure vessel on record with the division, and 8.32may determine a monthly schedule of billings to be followed for owners, lessees, or other 8.33persons having charge of a boiler or pressure vessel subject to inspection under sections 8.34326B.952 to 326B.998. for each boiler or pressure vessel on record with the department.8.35    Subd. 3. Certificate of registration. The department shall issue a an electronic8.36certificate of registration that lists the registered boilers and pressure vessels at the 9.1location, expiration date of the certificate of registration, last inspection date of each 9.2registered boiler and pressure vessel, and maximum allowable working pressure for 9.3each registered boiler and pressure vessel. The commissioner may make an electronic 9.4certificate of registration This certificate shall be available to be printed by the owner, 9.5lessee, or other person having charge of the registered boiler or pressure vessel.9.6    Sec. 6. Minnesota Statutes 2008, section 326B.961, as added by 2009 H.F. No. 927, 9.7section 20, if enacted, is amended to read:9.8[326B.961] TRIENNIAL AUDITS AND TEAM LEADER CERTIFICATIONS.9.9    Subdivision 1. Triennial audits; assignment; qualifications. The chief boiler 9.10inspector shall assign a qualified ASME designee or team leader to perform triennial 9.11audits on ASME Code and national board stamp holders at the request of the stamp holder. 9.12The department shall maintain qualifications for ASME designees and national board team 9.13leaders in accordance with ASME and national board requirements.9.14    Subd. 2. Fees. The department's fee for performing ASME and national board 9.15triennial audits shall be the hourly rate pursuant to section 
         326B.986, subdivision 4.9.16    Sec. 7. Minnesota Statutes 2008, section 326B.964, is amended to read:9.17326B.964 STANDARDS OF INSPECTION.9.18    The engineering standards of boilers and pressure vessels for use in this state shall 9.19be that those established by Minnesota Rules, chapter 5225, and by the current edition of 9.20and amendments addenda to the ASME Code or, the National Board Inspection Code, 9.21and the National Fire Protection Association's standard NFPA 85 (Boiler and Combustion 9.22Systems Hazards Code), as applicable, for they apply to the construction, operation and 9.23care of, in-service inspection and testing, and controls and safety devices, and by the 9.24rules adopted by the department.9.25    Sec. 8. Minnesota Statutes 2008, section 326B.966, is amended to read:9.26326B.966 INSPECTION PROCEDURES AND STANDARDS OF REPAIRS.9.27    The rules inspection procedures and requirements for the repair of boilers and 9.28pressure vessels for use in this state shall be those established by the most current edition 9.29of and addenda to the National Board of Boiler and Pressure Vessel Inspectors inspection 9.30code Inspection Code and the rules adopted by the department.10.1    Sec. 9. Minnesota Statutes 2008, section 326B.97, is amended to read:10.2326B.97 INSPECTION OF BOILERS AND PRESSURE VESSELS.10.3The owner or manager, lessee, or other person having control of a boiler or pressure 10.4vessel shall allow inspectors full access thereto.to the boiler or pressure vessel. Every 10.5engineer operating a boiler shall assist the inspector in during the examination, and point 10.6out indicate to the inspector any known defects in the boilers, pressure vessels, steam 10.7engines, or and turbines in the engineer's charge.10.8    Sec. 10. Minnesota Statutes 2009 Supplement, section 326B.972, is amended to read:10.9326B.972 LICENSE REQUIREMENT.10.10    (a) To operate a boiler, steam engine, or steam turbine an individual must have 10.11received a license for the grade covering that boiler, steam engine, or steam turbine. 10.12Except for licenses described in section 
         326B.956 and except for provisional licenses 10.13described in paragraphs (d) to (g):10.14(1) all initial licenses shall be for two years;10.15(2) the commissioner shall in a manner determined by the commissioner, without 10.16the need for any rulemaking under chapter 14, phase in the renewal of licenses from 10.17one year to two years; and10.18(3) by June 30, 2011, all licenses shall be two-year licenses.10.19    (b) For purposes of sections 
         326B.952326B.93 to 
         326B.998, "operation" means 10.20the act of manipulating and monitoring boilers or appurtenances for their intended 10.21purpose and to ensure safety, except that operation does not include remote monitoring 10.22of an automatic boiler, either through on premises inspection of the boiler or by remote 10.23electronic surveillance, provided that no operations are. When a boiler is monitored from 10.24a remote location, the only function that may be performed remotely upon the boiler 10.25other than is an emergency shut down in alarm situations.10.26    (c) No individual under the influence of illegal drugs or alcohol may operate a boiler, 10.27steam engine, or steam turbine or monitor an automatic boiler.10.28    (d) The commissioner may issue a provisional license to allow an employee of a 10.29high pressure boiler plant to operate boilers greater than 500 horsepower at only that 10.30boiler plant if:10.31    (1) the boiler plant has a designated chief engineer in accordance with Minnesota 10.32Rules, part 5225.0410;10.33    (2) the boiler plant employee holds a valid license as a second-class engineer, 10.34Grade A or B;11.1    (3) the chief engineer in charge of the boiler plant submits an application to the 11.2commissioner on a form prescribed by the commissioner to elicit information on whether 11.3the requirements of this paragraph have been met;11.4    (4) the chief engineer in charge of the boiler plant and an authorized representative 11.5of the owner of the boiler plant both sign the application for the provisional license;11.6    (5) the owner of the boiler plant has a documented training program with examination 11.7for boilers and equipment at the boiler plant to train and test the boiler plant employee; and11.8    (6) if the application were to be granted, the total number of provisional licenses 11.9for employees of the boiler plant would not exceed the total number of properly licensed 11.10first-class engineers and chief engineers responsible for the safe operation of the boilers 11.11at the boiler plant.11.12    (e) A public utility, cooperative electric association, generation and transmission 11.13cooperative electric association, municipal power agency, or municipal electric utility 11.14that employs licensed boiler operators who are subject to an existing labor contract may 11.15use a provisional licensee as an operator only if using the provisional licensee does not 11.16violate the labor contract.11.17    (f) Each provisional license expires 36 months after the date of issuance unless 11.18revoked less than 36 months after the date of issuance. A provisional license is valid for 11.1936 months from the date of issue, unless revoked before the expiration date. A provisional 11.20license may not be renewed.11.21    (g) The commissioner may issue no more than two provisional licenses to any 11.22individual within a four-year period.11.23    Sec. 11. Minnesota Statutes 2008, section 326B.98, is amended to read:11.24326B.98 VERIFICATION OF CERTIFICATE.11.25In making an inspection of boilers, machinery, or vessels, and pressure vessels,11.26inspectors may act jointly or separately. In all cases inspectors shall verify the certificate 11.27of inspection. registration to ensure that all registered boilers and pressure vessels, other 11.28than historical boilers are inspected. Any boilers and pressure vessels that are no longer in 11.29service shall be removed from the certificate of registration according to rules adopted 11.30by the department.11.31    Sec. 12. Minnesota Statutes 2009 Supplement, section 326B.986, subdivision 2, 11.32is amended to read:11.33    Subd. 2. Fee amounts; master's. The license and application fee for an initial 11.34master's license is $70, or $40 if the applicant possesses a valid, unlimited, current United 12.1States Coast Guard master's license. The renewal fee for a master's license is $20 for one 12.2year or $40 for two years. If the renewal fee is paid later than 30 days after expiration, 12.3then a late fee of $15 will be added to the renewal fee.12.4    Sec. 13. Minnesota Statutes 2009 Supplement, section 326B.986, subdivision 8, 12.5is amended to read:12.6    Subd. 8. Certificate of competency. The fee for issuance of the original state of 12.7Minnesota certificate of competency for inspectors is $85 for inspectors who did not 12.8pay the national board examination fee specified in subdivision 6, or $35 for inspectors 12.9who paid the that examination fee. Each applicant for a certificate of competency must 12.10complete an interview with the chief boiler inspector before issuance of the certificate of 12.11competency. All initial certificates of competency shall be effective for more than one 12.12calendar year and shall expire on December 31 of the year after the year in which the 12.13application is made. The commissioner shall in a manner determined by the commissioner, 12.14without the need for any rulemaking under chapter 14, phase in the renewal of certificates 12.15of competency from one calendar year to two calendar years. By June 30, 2011, all 12.16renewed certificates of competency shall be valid for two calendar years. The fee for 12.17renewal of the state of Minnesota certificate of competency is $35 for one year or $70 for 12.18two years, and is due the day after the certificate expires.12.19    Sec. 14. Minnesota Statutes 2008, section 326B.986, subdivision 10, is amended to 12.20read:12.21    Subd. 10. Late fee. The commissioner mayshall assess a late fee of up to $100 12.22for each invoice issued under subdivision 1, 3, or 4 that is not paid in full by the due 12.23date stated on the invoice.12.24    Sec. 15. Minnesota Statutes 2009 Supplement, section 326B.988, is amended to read:12.25326B.988 EXCEPTIONS.12.26    (a) The provisions of sections 
         326B.952326B.93 to 
         326B.998, shall not apply to: 12.27    (1) boilers and pressure vessels in buildings occupied solely for residence purposes 12.28with accommodations for not more than five families;12.29    (2) railroad locomotives operated by railroad companies for transportation purposes;12.30    (3) air tanks installed on the right-of-way of railroads and used directly in the 12.31operation of trains;12.32    (4) boilers and pressure vessels under the direct jurisdiction of the United States;13.1    (5) unfired pressure vessels having an internal or external working pressure not 13.2exceeding 15 p.s.i.g. with no limit on size;13.3    (6) pressure vessels used for storage of compressed air not exceeding five cubic feet 13.4in volume and equipped with an ASME code stamped safety valve set at a maximum 13.5of 100 p.s.i.g.;13.6    (7) pressure vessels having an inside diameter not exceeding six inches;13.7    (8) every vessel that contains water under pressure, including those containing air 13.8that serves only as a cushion, whose design pressure does not exceed 300 p.s.i.g. and 13.9whose design temperature does not exceed 210 degrees Fahrenheit;13.10    (9) boiler or pressure vessels located on farms used solely for agricultural or 13.11horticultural purposes; for purposes of this section, boilers used for mint oil extraction 13.12are considered used for agricultural or horticultural purposes, provided that the owner or 13.13lessee complies with the inspection requirements contained in section 
         326B.958; 13.14    (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;13.15    (11) unfired pressure vessels in petroleum refineries;13.16    (12) an air tank or pressure vessel which is an integral part of a passenger motor 13.17bus, truck, or trailer;13.18    (13) hot water heating and other hot liquid boilers not exceeding a heat input of 13.19750,000 BTU per hour;13.20    (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000 13.21BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity of 13.22120 gallons, or a pressure of 160 p.s.i.g.;13.23    (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;13.24    (16) pressure vessels operated full of water or other liquid not materially more 13.25hazardous than water, if the vessel's contents' temperature does not exceed 140 21013.26degrees Fahrenheit or a pressure of 200 p.s.i.g.;13.27    (17) steam powered turbines at papermaking facilities which are powered by steam 13.28generated by steam facilities at a remote location; and13.29    (18) manually fired boilers for model locomotive, boat, tractor, stationary engine, 13.30or antique motor vehicles constructed or maintained only as a hobby for exhibition, 13.31educational or historical purposes and not for commercial use, if the boilers have an 13.32inside diameter of 12 inches or less, or a grate area of two square feet or less, and are 13.33equipped with an ASME stamped safety valve of adequate size, a water level indicator, 13.34and a pressure gauge.;13.35(19) any pressure vessel used as an integral part of an electrical circuit breaker;14.1(20) pressure vessels used for the storage of refrigerant if they are built to ASME 14.2code specifications, registered with the national board, and equipped with an ASME 14.3code stamped pressure relieving device set no higher than the maximum allowable 14.4working pressure of the vessel. This does not include pressure vessels used in ammonia 14.5refrigeration systems;14.6(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon 14.7dioxide, argon, nitrous oxide, or other medical gas, provided the vessel is constructed to 14.8ASME or Minnesota Department of Transportation specifications and equipped with an 14.9ASME code stamped pressure relieving device. The owner of the vessel shall perform 14.10annual visual inspections and planned maintenance on these vessels to ensure vessel 14.11integrity;14.12(22) pressure vessels used for the storage of compressed air for self-contained 14.13breathing apparatuses; 14.14(23) hot water heating or other hot liquid boilers vented directly to the atmosphere; 14.15and14.16(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic 14.17feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or 14.18less.14.19    (b) An engineer's license is not required for hot water supply boilers.14.20    (c) An engineer's license and annual inspection by the department is not required 14.21for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not 14.22exceeding 100,000 BTU per hour input, 25 kilowatt, 2-1/2 horsepower and a pressure of 14.2315 p.s.i.g.14.24    (d) Electric boilers not exceeding a maximum working pressure of 50 p.s.i.g., 14.25maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure 14.26vessels and shall not require an engineer license to operate.14.27    Sec. 16. Minnesota Statutes 2008, section 326B.99, is amended to read:14.28326B.99 REPORT OF INSURER; EXEMPTION FROM INSPECTION.14.29    Subdivision 1. ReportInspection required. Any insurance company insuring 14.30boilers and pressure vessels in this state shall file a report showing the most recent date 14.31of inspection, the name of the individual making the inspection, the condition of the 14.32boiler or pressure vessel as disclosed by the inspection, whether the boiler was operated 14.33by a properly licensed engineer, whether a policy of insurance has been issued by the 14.34company with reference to the boiler or pressure vessel, and other information as directed 14.35by the commissioner. inspect each insured boiler or pressure vessel. Within 21 days 15.1after the inspection, the insurance company shall file the an inspection report with the 15.2commissioner. The insurer shall provide a copy of the report to the person owning or 15.3operating the inspected boiler or pressure vessel. The inspection report shall be on the 15.4applicable national board form. The inspection report must indicate who is the properly 15.5licensed engineer in charge of the boiler or pressure vessel, including the engineer's 15.6license grade, class, and telephone number. Such report shall be made annually for 15.7boilers and biennially for pressure vessels, and must be submitted in the format required 15.8by the department.15.9    Subd. 2.  Exemption. Every boiler or pressure vessel as to which any insurance 15.10company authorized to do business in this state has issued a policy of insurance, after the 15.11inspection thereof, is exempt from inspection by the department made under sections 15.12326B.952326B.93 to 
         326B.998, while the same continues to be insured and provided it 15.13continues to be inspected in accordance with the inspection schedule set forth in sections 15.14326B.958 and 326B.96, and the person owning or operating the same has an unexpired 15.15certificate of registration. except the initial inspection by the department under section 15.16326B.96, subdivision 1, as long as:15.17(1) the boiler or pressure vessel continues to be insured;15.18(2) the boiler or pressure vessel continues to be inspected in accordance with the 15.19inspection schedule in sections 326B.958 and 326B.96; and15.20(3) the person owning or operating the boiler or pressure vessel has an unexpired 15.21certificate of registration.15.22    Subd. 3. Notice of insurance coverage. The insurer shall notify the commissioner 15.23in writing of its policy to insure and inspect boilers and pressure vessels at a location 15.24within 30 days of receipt of notification from the insured that a boiler or pressure vessel is 15.25present at an insured location. The insurer must also provide a duplicate of the notification 15.26to the insured. the date coverage is provided. 15.27    Subd. 4. Notice of discontinued coverage. The insurer shall notify the 15.28commissioner in writing, within 30 days of the effective date, of the discontinuation of 15.29insurance coverage of the boilers and pressure vessels at a location and the cause or reason 15.30for the discontinuation if the insurer has received notice from the insured that a boiler or 15.31pressure vessel is present at an insured location, as provided under subdivision 3. This 15.32notice shall show the effective date when the discontinued policy takes effect.15.33    Subd. 5. Penalties. The commissioner shall assess upon the insurer a $50 penalty, 15.34per applicable boiler and pressure vessel, for failing to submit an inspection report or 15.35notify the commissioner of insurance coverage or discontinuation of insurance coverage 15.36as set forth in this section. The commissioner shall assess upon the insurer a penalty 16.1of $100, per applicable boiler and pressure vessel, for failing to conduct the required 16.2in-service inspection within 120 60 days after the inspection was due in accordance with 16.3section 326B.958., or within 60 days of the date of coverage for boilers or pressure vessels 16.4that are overdue for inspection. The penalties in this subdivision may only be assessed for 16.5notice, reports, and inspections required during the period that the insurance coverage was 16.6in effect and for which the insurer has received notice from the insured that a boiler or 16.7pressure vessel is present at an insured location, as provided under subdivision 5.16.8    Sec. 17. Minnesota Statutes 2008, section 326B.994, subdivision 3, is amended to read:16.9    Subd. 3. Sale violation.  No manufacturer, jobber, dealer, or other person shall sell 16.10or offer for sale a boiler or pressure vessel that does not meet the minimum construction 16.11requirements of the ASME boiler and pressure vessel code and the rules of the department.16.12    Sec. 18. Minnesota Statutes 2008, section 326B.998, is amended to read:16.13326B.998 PENALTY FOR UNLAWFUL OPERATION. OPERATORS.16.14(a) Every person who shall apply, or cause to be applied, to a boiler or pressure 16.15vessel a higher pressure than is allowed by law, or by the inspector, officer, or person 16.16authorized to limit the same; and every owner and lessee of a boiler or pressure vessel 16.17having knowledge of such application, or of circumstances which would cause such an 16.18application, shall be guilty of a gross misdemeanor. No person shall operate or cause to be 16.19operated a boiler or pressure vessel at a higher pressure than is indicated on the original 16.20manufacturer's data plate attached to the boiler or pressure vessel.16.21(b) Every captain No master or other person having charge of the machinery of 16.22a boat used for the conveyance of passengers in the waters of this state and every, or16.23engineer or other person having charge of a boiler, steam engine, or other apparatus for 16.24generating or employing steam, who shall willfully, or from ignorance or gross neglect,16.25shall create, or allow to be created any condition whereby human life is endangered, and 16.26every. Every owner and lessee of a boat, boiler, steam engine, or other apparatus for 16.27generating or supplying steam who has knowledge of such a condition whereby human 16.28life is endangered, or of circumstances which would cause such a condition, shall be guilty 16.29of a gross misdemeanor. shall take prompt action to correct the condition or circumstances 16.30and eliminate the danger to human life. 16.31(c) Any person who violates paragraph (a) or (b) is guilty of a gross misdemeanor.16.32    Sec. 19.  REPEALER.17.1(a) Minnesota Statutes 2008, sections 326B.952; 326B.96, subdivision 1; 326B.962; 17.2326B.968; 326B.982; and 326B.996, are repealed.17.3(b) Minnesota Rules, parts 5225.1400; 5225.3100; 5225.3150; and 5225.3200, are 17.4repealed.