SF 1653

2nd Unofficial Engrossment - 87th Legislature (2011 - 2012)

Posted on 04/28/2012 08:45 p.m.

1.1A bill for an act 1.2relating to labor and industry; clarifying employee classification of independent 1.3contractors; providing pilot project for contractor registration; providing for 1.4penalties;amending Minnesota Statutes 2010, sections 181.723, subdivisions 1.51, 3, 4, 7, 10, 15, 16, by adding subdivisions; 326B.081, subdivision 3; 1.6Minnesota Statutes 2011 Supplement, section 181.723, subdivision 5; repealing 1.7Minnesota Statutes 2010, section 181.723, subdivisions 6, 8, 9, 10, 11, 12, 14, 1.817; Minnesota Rules, parts 5202.0100; 5202.0110; 5202.0120; 5202.0130; 1.95202.0140; 5202.0150; 5202.0160. 1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.11    Section 1. Minnesota Statutes 2010, section 181.723, subdivision 1, is amended to read: 1.12    Subdivision 1. Definitions. The definitions in this subdivision apply to this section. 1.13    (a) "Person" means any individual, limited liability corporation new text begin company, limited new text end 1.14 new text begin liability partnership new text end , corporation, partnership, incorporated or unincorporated association, 1.15sole proprietorship, joint stock company, or any other legal or commercial entity. 1.16    (b) "Department" means the Department of Labor and Industry. 1.17    (c) "Commissioner" means the commissioner of labor and industry or a duly 1.18designated representative of the commissioner who is either an employee of the 1.19Department of Labor and Industry or person working under contract with the Department 1.20of Labor and Industry. 1.21    (d) "Individual" means a human being. 1.22    (e) "Day" means calendar day unless otherwise provided. 1.23    (f) "Knowingly" means knew or could have known with the exercise of reasonable 1.24diligence. 1.25    (g) "Document" or "documents" includes papers; books; records; memoranda; data; 1.26contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 2.1records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars 2.2maintained in any form or manner. 2.3 new text begin (h) "Business entity" means a person other than an individual or a sole proprietor. new text end 2.4    Sec. 2. Minnesota Statutes 2010, section 181.723, subdivision 3, is amended to read: 2.5    Subd. 3. Employee-employer relationship. Except as provided in subdivision 4, 2.6for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009 new text begin 2013 new text end , an 2.7individual who performs services for a person that are in the course of the person's trade, 2.8business, profession, or occupation is an employee of that person and that person is an 2.9employer of the individual. 2.10    Sec. 3. Minnesota Statutes 2010, section 181.723, subdivision 4, is amended to read: 2.11    Subd. 4. Independent contractor. new text begin (a) new text end An individual is an independent contractor 2.12and not an employee of the person for whom the individual is performing services in the 2.13course of the person's trade, business, profession, or occupation only if (1) the individual 2.14holds a current independent contractor exemption certificate issued by the commissioner; 2.15and (2) the individual is performing services for the person under the independent 2.16contractor exemption certificate as provided in subdivision 6. The requirements in clauses 2.17(1) and (2) must be met in order to qualify as an independent contractor and not as an 2.18employee of the person for whom the individual is performing services in the course of 2.19the person's trade, business, profession, or occupation. new text begin the individual is registered with the new text end 2.20 new text begin Department of Labor and Industry, if required under subdivision 4a, and the individual: new text end 2.21 new text begin (1) maintains a separate business with the worker's own office, equipment, materials, new text end 2.22 new text begin and other facilities; new text end 2.23 new text begin (2)(i) holds or has applied for a federal employer identification number or (ii) has new text end 2.24 new text begin filed business or self-employment income tax returns with the federal Internal Revenue new text end 2.25 new text begin Service if the worker has performed services in the previous year; new text end 2.26 new text begin (3) is operating under contract to perform the specific services for the person for new text end 2.27 new text begin specific amounts of money and under which the worker controls the means of performing new text end 2.28 new text begin the services; new text end 2.29 new text begin (4) is incurring the main expenses related to the services that the worker is new text end 2.30 new text begin performing for the person under the contract; new text end 2.31 new text begin (5) is responsible for the satisfactory completion of the services that the worker has new text end 2.32 new text begin contracted to perform for the person and is liable for a failure to complete the services; new text end 2.33 new text begin (6) receives compensation from the person for the services performed under the new text end 2.34 new text begin contract on a commission or per-job or competitive bid basis and not on any other basis; new text end 3.1 new text begin (7) may realize a profit or suffer a loss under the contract to perform services for new text end 3.2 new text begin the person; new text end 3.3 new text begin (8) has continuing or recurring business liabilities or obligations; and new text end 3.4 new text begin (9) the success or failure of the worker's business depends on the relationship of new text end 3.5 new text begin business receipts to expenditures. new text end 3.6 new text begin (b) If a worker is an owner or partial owner of a business entity, the worker is an new text end 3.7 new text begin employee of the person for whom the worker is performing services in the course of the new text end 3.8 new text begin person's trade, business, profession, or occupation, and is not an employee of the business new text end 3.9 new text begin entity in which the worker has an ownership interest, unless: new text end 3.10 new text begin (1) the business entity meets the nine factors in paragraph (a); new text end 3.11 new text begin (2) invoices are submitted in the name of the business entity; new text end 3.12 new text begin (3) the business entity is registered with the secretary of state, if required; and new text end 3.13 new text begin (4) the business entity is registered with the Department of Labor and Industry, new text end 3.14 new text begin if required under subdivision 4a. new text end 3.15    Sec. 4. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision 3.16to read: 3.17     new text begin Subd. 4a. new text end new text begin Registration pilot project. new text end new text begin (a) The commissioner shall implement a pilot new text end 3.18 new text begin project, effective July 1, 2012, for the registration of persons who perform public or new text end 3.19 new text begin private sector commercial or residential building construction or improvement services new text end 3.20 new text begin as described in subdivision 2. The purpose of the pilot project is to evaluate whether the new text end 3.21 new text begin information obtained through registration assists the Department of Labor and Industry, new text end 3.22 new text begin the Department of Employment and Economic Development, and the Department of new text end 3.23 new text begin Revenue to enforce laws related to misclassification of employees. The commissioner new text end 3.24 new text begin shall issue a report to the legislature no later than January 1, 2014, on recommendations new text end 3.25 new text begin for amendments to the registration program, including reasonable registration fees to be new text end 3.26 new text begin used to aid in enforcing misclassification laws. The commissioner must not charge a fee new text end 3.27 new text begin for registration under the pilot project, but may take the enforcement action specified in new text end 3.28 new text begin subdivision 8a. The pilot project shall expire on June 30, 2014, unless extended by the new text end 3.29 new text begin legislature. new text end 3.30 new text begin (b) Except as provided in paragraph (c), any person who performs construction new text end 3.31 new text begin services in the state on or after September 15, 2012, must register with the commissioner new text end 3.32 new text begin as provided in subdivision 5 before performing construction services for another person. new text end 3.33 new text begin The requirements for registration under this subdivision are not a substitute for, and do new text end 3.34 new text begin not relieve a person from complying with, any other law requiring that the person be new text end 3.35 new text begin licensed, registered, or certified. new text end 4.1 new text begin (c) The registration requirements in this subdivision do not apply to: new text end 4.2 new text begin (1) a person who, at the time the person is performing the construction services, new text end 4.3 new text begin holds a current license, certificate, or registration under chapter 299M or 326B; new text end 4.4 new text begin (2) a person who holds a current independent contractor exemption certificate new text end 4.5 new text begin issued under this section that is in effect on September 15, 2012, except that the person new text end 4.6 new text begin must register under this section no later than the date the exemption certificate expires, is new text end 4.7 new text begin revoked, or is canceled; new text end 4.8 new text begin (3) a person who has given a bond to the state under section 326B.197 or 326B.46; new text end 4.9 new text begin (4) an employee of the person performing the construction services, if the person new text end 4.10 new text begin was in compliance with laws related to employment of the individual at the time the new text end 4.11 new text begin construction services were performed; new text end 4.12 new text begin (5) an architect or professional engineer engaging in professional practice as defined new text end 4.13 new text begin in section 326.02, subdivisions 2 and 3; new text end 4.14 new text begin (6) a school district or technical college governed under chapter 136F; new text end 4.15 new text begin (7) a person providing construction services on a volunteer basis, including but not new text end 4.16 new text begin limited to Habitat for Humanity and Builders Outreach Foundation, and their individual new text end 4.17 new text begin volunteers when engaged in activities on their behalf; or new text end 4.18 new text begin (8) a person exempt from licensing under section 326B.805, subdivision 6, clause (5). new text end 4.19    Sec. 5. Minnesota Statutes 2011 Supplement, section 181.723, subdivision 5, is 4.20amended to read: 4.21    Subd. 5. new text begin Registration new text end application. To obtain an independent contractor exemption 4.22certificate, the individual must submit new text begin (a) Persons required to register under subdivision 4a new text end 4.23 new text begin must submit electronically new text end , in the manner prescribed by the commissioner, a complete 4.24application and the certificate fee required under subdivision 14 new text begin according to paragraphs new text end 4.25 new text begin (b) to (d) new text end . 4.26    (a) new text begin (b) new text end A complete application must include all of the following information new text begin about new text end 4.27 new text begin any individual who is registering as an individual or a sole proprietor, or who owns 25 new text end 4.28 new text begin percent or more of a business entity being registered new text end : 4.29    (1) the individual's full new text begin legal new text end name new text begin and title at applicant's business new text end ; 4.30    (2) the individual's residence new text begin business new text end address and telephone number; 4.31    (3) the individual's business name, address, and telephone number; new text begin percentage of the new text end 4.32 new text begin applicant's business owned by the individual; and new text end 4.33    (4) the services for which the individual is seeking an independent contractor 4.34exemption certificate; 4.35    (5) new text begin (4) new text end the individual's Social Security number; new text begin . new text end 5.1    (6) the individual's or the individual's business federal employer identification 5.2number, if a number has been issued to the individual or the individual's business; 5.3    (7) any information or documentation that the commissioner requires by rule that 5.4will assist the department in determining whether to grant or deny the individual's 5.5application; and 5.6    (8) the individual's sworn statement that the individual meets all of the following 5.7conditions: 5.8    (i) maintains a separate business with the individual's own office, equipment, 5.9materials, and other facilities; 5.10    (ii) holds or has applied for a federal employer identification number or has filed 5.11business or self-employment income tax returns with the federal Internal Revenue Service 5.12if the person has performed services in the previous year for which the individual is 5.13seeking the independent contractor exemption certificate; 5.14    (iii) operates under contracts to perform specific services for specific amounts of 5.15money and under which the individual controls the means of performing the services; 5.16    (iv) incurs the main expenses related to the service that the individual performs 5.17under contract; 5.18    (v) is responsible for the satisfactory completion of services that the individual 5.19contracts to perform and is liable for a failure to complete the service; 5.20    (vi) receives compensation for service performed under a contract on a commission 5.21or per-job or competitive bid basis and not on any other basis; 5.22    (vii) may realize a profit or suffer a loss under contracts to perform service; 5.23    (viii) has continuing or recurring business liabilities or obligations; and 5.24    (ix) the success or failure of the individual's business depends on the relationship of 5.25business receipts to expenditures. 5.26    (b) Individuals who are applying for or renewing a residential building contractor or 5.27residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81, 5.28326B.815, 326B.821 to 326B.86, 326B.87 to , and , and any rules 5.29promulgated pursuant thereto, may simultaneously apply for or renew an independent 5.30contractor exemption certificate. The commissioner shall create an application form 5.31that allows for the simultaneous application for both a residential building contractor 5.32or residential remodeler license and an independent contractor exemption certificate. 5.33If individuals simultaneously apply for or renew a residential building contractor or 5.34residential remodeler license and an independent contractor exemption certificate using 5.35the form created by the commissioner, individuals shall only be required to provide, in 5.36addition to the information required by section and rules promulgated pursuant 6.1thereto, the sworn statement required by paragraph (a), clause (8), and any additional 6.2information required by this subdivision that is not also required by section and 6.3any rules promulgated thereto. An independent contractor exemption certificate that is in 6.4effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by 6.5the commissioner or canceled by the individual. 6.6    (c) Within 30 days of receiving a complete application and the certificate fee, the 6.7commissioner must either grant or deny the application. The commissioner may deny 6.8an application for an independent contractor exemption certificate if the individual has 6.9not submitted a complete application and certificate fee or if the individual does not 6.10meet all of the conditions for holding the independent contractor exemption certificate. 6.11The commissioner may revoke an independent contractor exemption certificate if the 6.12commissioner determines that the individual no longer meets all of the conditions for 6.13holding the independent contractor exemption certificate, commits any of the actions 6.14set out in subdivision 7, or fails to cooperate with a department investigation into the 6.15continued validity of the individual's certificate. Once issued, an independent contractor 6.16exemption certificate remains in effect for four years unless: 6.17    (1) revoked by the commissioner; or 6.18    (2) canceled by the individual. 6.19    (d) If the department denies an individual's original or renewal application for 6.20an independent contractor exemption certificate or revokes an independent contractor 6.21exemption certificate, the commissioner shall issue to the individual an order denying or 6.22revoking the certificate. The commissioner may issue an administrative penalty order to 6.23an individual or person who commits any of the actions set out in subdivision 7. The 6.24commissioner may file and enforce the unpaid portion of a penalty as a judgment in 6.25district court without further notice or additional proceedings. 6.26    (e) An individual or person to whom the commissioner issues an order under 6.27paragraph (d) shall have 30 days after service of the order to request a hearing. The 6.28request for hearing must be in writing and must be served on or faxed to the commissioner 6.29at the address or facsimile number specified in the order by the 30th day after service of 6.30the order. If the individual does not request a hearing or if the individual's request for a 6.31hearing is not served on or faxed to the commissioner by the 30th day after service of the 6.32order, the order shall become a final order of the commissioner and will not be subject to 6.33review by any court or agency. The date on which a request for hearing is served by mail 6.34shall be the postmark date on the envelope in which the request for hearing is mailed. If 6.35the individual serves or faxes a timely request for hearing, the hearing shall be a contested 6.36case hearing and shall be held in accordance with chapter 14. 7.1 new text begin (c) A complete application must also include the following information: new text end 7.2 new text begin (1) the applicant's legal name; assumed name filed with the secretary of state, if any; new text end 7.3 new text begin designated business address; physical address; telephone number; and e-mail address; new text end 7.4 new text begin (2) the applicant's Minnesota tax identification number, if one is required or has new text end 7.5 new text begin been issued; new text end 7.6 new text begin (3) the applicant's federal employer identification number, if one is required or new text end 7.7 new text begin has been issued; new text end 7.8 new text begin (4) evidence of the active status of the applicant's business filings with the secretary new text end 7.9 new text begin of state, if one is required or has been issued; new text end 7.10 new text begin (5) whether the applicant has any employees at the time the application is filed; new text end 7.11 new text begin (6) the names of all other persons with an ownership interest in the business entity new text end 7.12 new text begin who are not identified in paragraph (b), and the percentage of the interest owned by each new text end 7.13 new text begin person, except that the names of shareholders with less than ten percent ownership in a new text end 7.14 new text begin publicly traded corporation need not be provided; new text end 7.15 new text begin (7) information documenting compliance with workers' compensation and new text end 7.16 new text begin unemployment insurance laws; new text end 7.17 new text begin (8) a certification that the person signing the application has: reviewed it; determined new text end 7.18 new text begin that the information provided is true and accurate; and determined that the person signing new text end 7.19 new text begin is authorized to sign and file the application as an agent of the applicant. The name of the new text end 7.20 new text begin person signing, entered on an electronic application, shall constitute a valid signature of new text end 7.21 new text begin the agent on behalf of the applicant; and new text end 7.22 new text begin (9) a signed authorization for the Department of Labor and Industry to verify the new text end 7.23 new text begin information provided on or with the application. new text end 7.24 new text begin (d) A registered person must notify the commissioner within 15 days after there is a new text end 7.25 new text begin change in any of the information on the application as approved. This notification must new text end 7.26 new text begin be provided electronically in the manner prescribed by the commissioner. However, if new text end 7.27 new text begin the business entity structure, legal form of the business entity, or business ownership has new text end 7.28 new text begin changed, the person must submit a new registration application and registration fee, if new text end 7.29 new text begin any, for the new business entity. new text end 7.30 new text begin (e) The registered person must remain registered while providing construction new text end 7.31 new text begin services for another person. The provisions of sections 326B.091 and 326B.094 to new text end 7.32 new text begin 326B.097 apply to this section. new text end 7.33    Sec. 6. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision 7.34to read: 8.1     new text begin Subd. 5a. new text end new text begin Web site. new text end new text begin (a) The commissioner shall develop and maintain a Web site new text end 8.2 new text begin on which applicants for registration can submit a registration application. The Web site new text end 8.3 new text begin shall be designed to receive and process registration applications and promptly issue new text end 8.4 new text begin registration certificates electronically to successful applicants. new text end 8.5 new text begin (b) The commissioner shall maintain the certificates of registration on the new text end 8.6 new text begin department's official public Web site, which shall include the following information: new text end 8.7 new text begin (1) the registered person's legal business name, including any assumed name, as new text end 8.8 new text begin filed with the secretary of state; new text end 8.9 new text begin (2) the person's business address designated on the application; and new text end 8.10 new text begin (3) the effective date of the registration and the expiration date. new text end 8.11    Sec. 7. Minnesota Statutes 2010, section 181.723, subdivision 7, is amended to read: 8.12    Subd. 7. Prohibited activities. new text begin (a) The prohibited activities in this subdivision are new text end 8.13 new text begin in addition to those prohibited in sections 326B.081 to 326B.085. new text end 8.14    (a) new text begin (b) new text end An individual shall not: 8.15    (1) perform work as an independent contractor who meets the qualifications under 8.16subdivision 6 without first obtaining from the department an independent contractor 8.17exemption certificate; 8.18    (2) perform work as an independent contractor when the department has denied or 8.19revoked the individual's independent contractor exemption certificate; 8.20    (3) transfer to another individual or allow another individual to use the individual's 8.21independent contractor exemption certificate; 8.22    (4) alter or falsify an independent contractor exemption certificate; 8.23    (5) misrepresent the individual's status as an independent contractor; or 8.24    (6) make a false material statement, representation, or certification; omit material 8.25information; or alter, conceal, or fail to file a document required by this section or any 8.26rule promulgated by the commissioner under rulemaking authority set out in this section. new text begin new text end 8.27 new text begin hold himself or herself out as an independent contractor unless the individual meets the new text end 8.28 new text begin requirements of subdivision 4. new text end 8.29    (b) new text begin (c) new text end A person new text begin who provides construction services in the course of the person's new text end 8.30 new text begin trade, business, occupation, or profession new text end shall not: 8.31    (1) require an individual through coercion, misrepresentation, or fraudulent means to 8.32adopt independent contractor status new text begin or form a business entity new text end ; 8.33    (2) knowingly misrepresent that an individual who has not been issued new text begin or misclassify new text end 8.34 new text begin a worker as new text end an independent contractor exemption certificate or is not performing services 9.1for the person under an independent contractor exemption certificate is an independent 9.2contractor; or 9.3    (3) new text begin contract with or perform construction services for another person without first new text end 9.4 new text begin being registered if required by subdivision 4a; new text end 9.5 new text begin (4) new text end make a false material statement, representation, or certification; omit material 9.6information; or alter, conceal, or fail to file a document required by this section or any 9.7rule promulgated by the commissioner under rulemaking authority set out in this section. new text begin new text end 9.8 new text begin contract with or pay another person to perform construction services if the other person new text end 9.9 new text begin is not registered if required by subdivision 4a. All payments to an unregistered person new text end 9.10 new text begin for construction services on a single project site shall be considered a single violation. It new text end 9.11 new text begin is not a violation of this clause: new text end 9.12 new text begin (i) for a person to contract with or pay an unregistered person if the unregistered new text end 9.13 new text begin person was registered at the time the contract for construction services was entered into; or new text end 9.14 new text begin (ii) for a homeowner or business to contract with or pay an unregistered person if new text end 9.15 new text begin the homeowner or business is not in the trade, business, profession, or occupation of new text end 9.16 new text begin performing building construction or improvement services; or new text end 9.17 new text begin (5) be penalized for violations of this subdivision that are committed by another new text end 9.18 new text begin person. This clause applies only to violations of this paragraph. new text end 9.19    (c) A person for whom an individual is performing services must obtain a copy of the 9.20individual's independent contractor exemption certificate before services may commence. 9.21A copy of the independent contractor exemption certificate must be retained for five years 9.22from the date of receipt by the person for whom an individual is performing services. 9.23    Sec. 8. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision 9.24to read: 9.25     new text begin Subd. 8a. new text end new text begin Enforcement; remedies; and penalties. new text end new text begin Notwithstanding the maximum new text end 9.26 new text begin penalty amount in section 326B.082, subdivisions 7 and 12, the maximum penalty for new text end 9.27 new text begin failure to register is $2,000, but the commissioner shall forgive the penalty if the person new text end 9.28 new text begin registers within 30 days of the date of the penalty order. new text end 9.29    Sec. 9. Minnesota Statutes 2010, section 181.723, subdivision 10, is amended to read: 9.30    Subd. 10. Notice requirements. Unless otherwise specified, service of a document 9.31on a person under this section may be by mail, by personal service, or in accordance with 9.32any consent to service filed with the commissioner. Service by mail shall be accomplished 9.33in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service 9.34shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, subpart 10.13. new text begin Notice of a penalty order for failure to register must include a statement that the penalty new text end 10.2 new text begin shall be forgiven if the person registers within 30 days of the date of the penalty order. new text end 10.3    Sec. 10. Minnesota Statutes 2010, section 181.723, subdivision 15, is amended to read: 10.4    Subd. 15. Notice to commissioner; review by commissioner of revenue. When 10.5the commissioner has reason to believe that an individual who holds a certificate has 10.6failed to maintain all the conditions required by subdivision 6 or is not performing 10.7services for a person under the independent contractor exemption certificate new text begin a person has new text end 10.8 new text begin violated subdivision 7, paragraph (b); or (c), clause (1) or (2) new text end , the commissioner must 10.9notify the commissioner of revenue and the commissioner of employment and economic 10.10development. Upon receipt of notification from the commissioner that an individual who 10.11holds a certificate has failed to maintain all the conditions required by subdivision 6 10.12or is not performing services for a person under the independent contractor exemption 10.13certificate, the commissioner of revenue must review the information returns required 10.14under section 6041A of the Internal Revenue Code. The commissioner of revenue shall 10.15also review the submitted certification that is applicable to returns audited or investigated 10.16under section 289A.35. 10.17    Sec. 11. Minnesota Statutes 2010, section 181.723, subdivision 16, is amended to read: 10.18    Subd. 16. Data classified. Data in applications for an independent contractor 10.19exemption certificate and any required documentation submitted to the commissioner new text begin new text end 10.20 new text begin under this section new text end are private data on individuals new text begin or nonpublic data new text end as defined in section 10.2113.02 . Data in exemption new text begin registration new text end certificates issued by the commissioner are public 10.22data new text begin ; except that registration information published on the department's Web site may be new text end 10.23 new text begin accessed for registration verification purposes only new text end . Data that document a revocation 10.24or cancellation of an exemption new text begin a new text end certificate are public data. Upon request of the 10.25Department of Revenue or new text begin the new text end Department of Employment and Economic Development, 10.26the commissioner may release to the requesting department data classified as private new text begin or new text end 10.27 new text begin nonpublic new text end under this subdivision or investigative data that are not public under section 10.2813.39 that relate to the issuance or denial of applications or revocations of certificates. 10.29    Sec. 12. Minnesota Statutes 2010, section 326B.081, subdivision 3, is amended to read: 10.30    Subd. 3. Applicable law. "Applicable law" means the provisions of sections 10.31 new text begin 181.723, new text end 327.31 to 327.36 new text begin , new text end and this chapter, and all rules, orders, stipulation agreements, 10.32settlements, compliance agreements, licenses, registrations, certificates, and permits 11.1adopted, issued, or enforced by the department under sections new text begin 181.723, new text end 327.31 to 327.36 new text begin , new text end 11.2or this chapter. 11.3    Sec. 13. new text begin REPEALER. new text end 11.4 new text begin (a) new text end new text begin Minnesota Statutes 2010, section 181.723, subdivision 17, new text end new text begin is repealed effective new text end 11.5 new text begin May 15, 2011. new text end 11.6 new text begin (b) new text end new text begin Minnesota Statutes 2010, section 181.723, subdivisions 6, 8, 9, 10, 11, 12, and new text end 11.7 new text begin 14, new text end new text begin and new text end new text begin Minnesota Rules, parts 5202.0100; 5202.0110; 5202.0120; 5202.0130; 5202.0140; new text end 11.8 new text begin 5202.0150; and 5202.0160, new text end new text begin are repealed July 1, 2012, except they shall remain in effect new text end 11.9 new text begin for the regulation of an individual holding an independent contractor exemption certificate new text end 11.10 new text begin issued before July 1, 2012, under Minnesota Statutes 2010, section 181.723, subdivision new text end 11.11 new text begin 5, until the exemption certificate expires, is revoked, or is canceled. new text end 11.12    Sec. 14. new text begin EFFECTIVE DATE. new text end 11.13 new text begin Sections 1 to 12 are effective July 1, 2012, except that those sections do not apply to new text end 11.14 new text begin the regulation of an individual who holds an independent contractor exemption certificate new text end 11.15 new text begin issued before July 1, 2012, under Minnesota Statutes 2010, section 181.723, subdivision new text end 11.16 new text begin 5, until the exemption certificate expires, or is revoked or canceled. new text end