SF 2065

CCR--SF2065 - 88th Legislature (2013 - 2014)

Posted on 05/15/2014 09:55 p.m.

1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 2065 1.2A bill for an act 1.3relating to labor and industry; extending an independent contractor registration 1.4pilot project; exempting certain sawmills from high pressure boiler attendance 1.5requirements;amending Minnesota Statutes 2012, sections 181.723, subdivisions 1.64, 4a, 5, 7; 326B.988; proposing coding for new law in Minnesota Statutes, 1.7chapter 326B. 1.8May 15, 2014 1.9The Honorable Sandra L. Pappas 1.10President of the Senate 1.11The Honorable Paul Thissen 1.12Speaker of the House of Representatives 1.13We, the undersigned conferees for S.F. No. 2065 report that we have agreed upon 1.14the items in dispute and recommend as follows: 1.15That the House recede from its amendments and that S.F. No. 2065 be further 1.16amended as follows: 1.17Delete everything after the enacting clause and insert: 1.18    "Section 1. new text begin [178.011] DEFINITIONS. new text end 1.19     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin The terms defined in this section have the meanings given new text end 1.20 new text begin and apply to this chapter. new text end 1.21     new text begin Subd. 2. new text end new text begin Apprentice. new text end new text begin "Apprentice" means a worker who is at least 16 years of new text end 1.22 new text begin age who is employed to learn an apprenticeable trade or occupation in a registered new text end 1.23 new text begin apprenticeship program under this chapter. new text end 1.24     new text begin Subd. 3. new text end new text begin Apprenticeship Advisory Board. new text end new text begin "Apprenticeship Advisory Board" or new text end 1.25 new text begin "board" means the Apprenticeship Advisory Board established under section 178.02 and new text end 1.26 new text begin as an advisory State Apprenticeship Council as defined in Code of Federal Regulations, new text end 1.27 new text begin title 29, section 29.2. new text end 1.28     new text begin Subd. 4. new text end new text begin Apprenticeship program. new text end new text begin "Apprenticeship program" means a program new text end 1.29 new text begin registered under this chapter that includes standards containing all terms and conditions new text end 1.30 new text begin for the qualification, recruitment, selection, employment, and training of apprentices, new text end 2.1 new text begin as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written new text end 2.2 new text begin apprenticeship agreement. new text end 2.3     new text begin Subd. 5. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of labor and new text end 2.4 new text begin industry or a duly designated representative of the commissioner who is an employee new text end 2.5 new text begin of the department. new text end 2.6     new text begin Subd. 6. new text end new text begin Department. new text end new text begin "Department" means the Department of Labor and Industry new text end 2.7 new text begin established under section 175.001. new text end 2.8     new text begin Subd. 7. new text end new text begin Division. new text end new text begin "Division" means the department's Labor Standards and new text end 2.9 new text begin Apprenticeship Division, established under sections 175.16 and 178.03, and the State new text end 2.10 new text begin Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29, new text end 2.11 new text begin section 29.2. new text end 2.12     new text begin Subd. 8. new text end new text begin Employer. new text end new text begin "Employer" means any person or organization employing new text end 2.13 new text begin an apprentice whether or not the person or organization is a party to an apprenticeship new text end 2.14 new text begin agreement with the apprentice. new text end 2.15     new text begin Subd. 9. new text end new text begin Journeyworker. new text end new text begin "Journeyworker" means a person who has attained a level new text end 2.16 new text begin of skill, abilities, and competencies recognized within an industry as having mastered the new text end 2.17 new text begin skills and competencies required for the trade or occupation. new text end 2.18     new text begin Subd. 10. new text end new text begin Registered apprenticeship agreement. new text end new text begin "Registered apprenticeship new text end 2.19 new text begin agreement" or "apprenticeship agreement" means a written agreement, complying with new text end 2.20 new text begin section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is new text end 2.21 new text begin a minor, the minor's parent or guardian, which contains the terms and conditions of the new text end 2.22 new text begin employment and training of the apprentice. new text end 2.23     new text begin Subd. 11. new text end new text begin Related instruction. new text end new text begin "Related instruction" means an organized and new text end 2.24 new text begin systematic form of instruction designed to provide the apprentice with the knowledge of new text end 2.25 new text begin the theoretical and technical subjects related to the apprentice's trade or occupation. The new text end 2.26 new text begin instruction may be given in a classroom through trade, occupational, or industrial courses new text end 2.27 new text begin or, when of equivalent value, by correspondence, electronic media, or other forms of new text end 2.28 new text begin self-study approved by the commissioner. new text end 2.29     new text begin Subd. 12. new text end new text begin Sponsor. new text end new text begin "Sponsor" means an employer, employer association, or new text end 2.30 new text begin apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29, new text end 2.31 new text begin section 29.2, that operates an apprenticeship program and in whose name the program is new text end 2.32 new text begin or is to be registered or approved. new text end 2.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 2.34    Sec. 2. new text begin [178.012] UNIFORMITY WITH FEDERAL LAW. new text end 3.1     new text begin Subdivision 1. new text end new text begin Apprenticeship rules. new text end new text begin Federal regulations governing apprenticeship new text end 3.2 new text begin in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29, new text end 3.3 new text begin sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to new text end 3.4 new text begin amendment by this chapter or by rule under section 178.041. new text end 3.5     new text begin Subd. 2. new text end new text begin State Apprenticeship Agency. new text end new text begin The commissioner shall take all necessary new text end 3.6 new text begin steps as permitted by law to obtain and maintain the status of the division as a State new text end 3.7 new text begin Apprenticeship Agency recognized by the United States Department of Labor under Code new text end 3.8 new text begin of Federal Regulations, title 29, part 29, section 29.13. new text end 3.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 3.10    Sec. 3. Minnesota Statutes 2012, section 178.02, is amended to read: 3.11178.02 APPRENTICESHIP new text begin ADVISORY new text end BOARD. 3.12    Subdivision 1. Members. The commissioner of labor and industry, hereinafter 3.13called the commissioner, shall appoint an Apprenticeship Board, hereinafter referred 3.14to as the board, composed of three representatives each from employer and employee 3.15organizations, and two representatives of the general public. The director new text begin A designee of new text end 3.16 new text begin the commissioner new text end of education responsible for career and technical education or designee 3.17shall be an ex officio member of the board and shall serve in an advisory capacity only. 3.18    Subd. 2. Terms. The board shall not expire. The terms, compensation, and removal 3.19of appointed members shall be as provided in section 15.059. 3.20    Subd. 4. Duties. The board shall meet at the call of the commissioner new text begin and new text end 3.21 new text begin shall advise the commissioner about matters relating to this chapter new text end . It shall propose 3.22occupational classifications for apprenticeship programs; propose minimum standards for 3.23apprenticeship programs and agreements; and advise on the establishment of such policies, 3.24procedures, and rules as the board new text begin or commissioner new text end deems necessary in implementing 3.25the intent of this chapter. 3.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 3.27    Sec. 4. Minnesota Statutes 2012, section 178.03, is amended to read: 3.28178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP. 3.29    Subdivision 1. Establishment of division. There is established a Division of Labor 3.30Standards and Apprenticeship in the Department of Labor and Industry. This division 3.31shall be administered by a director, and be under the supervision of the commissioner of 3.32labor and industry, hereinafter referred to as the commissioner. 4.1    Subd. 2. Director of labor standards and apprenticeship. The commissioner 4.2shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter 4.3referred to as the director, and may appoint and employ such clerical, technical, and 4.4professional help as is necessary to accomplish the purposes of this chapter. The director 4.5and division staff shall be appointed and shall serve in the classified service pursuant to 4.6civil service law and rules. 4.7    Subd. 3. Duties and functions. The director, under the supervision of the 4.8commissioner, and with the advice and consultation of the Apprenticeship Board, is 4.9authorized: to administer the provisions of this chapter; to promote apprenticeship and 4.10other forms of on-the-job learning; to establish, in cooperation and consultation with the 4.11Apprenticeship Board and with the apprenticeship committees, conditions, training, and 4.12learning standards for the approval of apprenticeship programs and agreements, which 4.13conditions and standards shall in no case be lower than those (1) prescribed by this chapter, 4.14and (2) established under new text begin The division shall be administered as prescribed by this chapter new text end 4.15 new text begin and in accordance with new text end Code of Federal Regulations, title 29, part 29; to promote equal 4.16employment opportunity in apprenticeship and other on-the-job learning and to establish 4.17a Minnesota plan for equal employment opportunity in apprenticeship which shall be 4.18consistent with standards established under Code of Federal Regulations, title 29, part 30, 4.19as amended; to issue certificates of registration to sponsors of approved apprenticeship 4.20programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion 4.21that approval is for the best interest of the apprentice, any apprenticeship agreement which 4.22meets the standards established hereunder; to terminate any apprenticeship agreement in 4.23accordance with the provisions of such agreement; to keep a record of apprenticeship 4.24agreements and their disposition; to issue certificates of completion of apprenticeship; 4.25and to perform such other duties as the commissioner deems necessary to carry out the 4.26intent of this chapter; provided, that the administration and supervision of supplementary 4.27instruction in related subjects for apprentices; coordination of instruction on a concurrent 4.28basis with job experiences, and the selection and training of teachers and coordinators 4.29for such instruction shall be the function of state and local boards responsible for 4.30vocational education. The director new text begin division new text end shall have the authority to make wage 4.31determinations applicable to the graduated schedule of wages and journeyworker wage 4.32rate for apprenticeship agreements, giving consideration to the existing wage rates 4.33prevailing throughout the state, except that no wage determination by the director shall 4.34alter an existing wage provision for apprentices or journeyworkers that is contained in a 4.35bargaining agreement in effect between an employer and an organization of employees, 5.1nor shall the director make any determination for the beginning rate for an apprentice that 5.2is below the wage minimum established by federal or state law. 5.3    Subd. 4. Reciprocity approval. The director new text begin commissioner new text end , if requested by a 5.4sponsoring entity new text begin program sponsor new text end , shall grant reciprocity approval to new text begin apprentices, new text end 5.5apprenticeship programs of employers and unions who jointly form a sponsoring entity 5.6on a multistate basis in other than the building construction industry if such programs 5.7are in conformity with this chapter and have been registered in compliance with Code 5.8of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized 5.9by or registered with the United States Department of Labor, Office of Apprenticeship, 5.10when such approval is necessary for federal purposes under Code of Federal Regulations, 5.11title 29, section (a) or (b)(7) new text begin , and standards that are registered in other states. new text end 5.12 new text begin Program sponsors seeking reciprocal approval must meet the requirements of this chapter new text end 5.13 new text begin including the wage and hour provisions and apprentice ratio standards new text end . 5.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 5.15    Sec. 5. new text begin [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS. new text end 5.16     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin To apply for the registration of an apprenticeship new text end 5.17 new text begin program, a sponsor shall submit a completed application to the division on a form provided new text end 5.18 new text begin by the commissioner, which shall include standards of apprenticeship that comply with the new text end 5.19 new text begin requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter. new text end 5.20     new text begin Subd. 2. new text end new text begin Provisional approval. new text end new text begin The division shall grant a provisional approval new text end 5.21 new text begin period of one year to an applicant demonstrating that the standards submitted meet the new text end 5.22 new text begin requirements of this chapter. The division may review each program granted provisional new text end 5.23 new text begin approval for quality and for conformity with the requirements of this section and section new text end 5.24 new text begin 178.036 at any time, but not less than biannually, during the provisional approval period. new text end 5.25 new text begin After review: new text end 5.26 new text begin (1) a program that conforms with the requirements of this chapter: new text end 5.27 new text begin (i) may be approved; or new text end 5.28 new text begin (ii) may continue to be provisionally approved through the first full training cycle; and new text end 5.29 new text begin (2) a program not in operation or not conforming with the requirements of this new text end 5.30 new text begin chapter during the provisional approval period shall be deregistered. new text end 5.31 new text begin The division shall inform the applicant of the results of its review in writing at least 30 new text end 5.32 new text begin days prior to the expiration of the provisional approval period. new text end 5.33     new text begin Subd. 3. new text end new text begin Review. new text end new text begin The division shall review all programs for quality and for new text end 5.34 new text begin conformity with the requirements of this chapter at the end of the first full training new text end 5.35 new text begin cycle. Subsequent review of a registered program must be conducted at least annually. new text end 6.1 new text begin Programs not in operation or not conforming to this chapter at the time of review may be new text end 6.2 new text begin recommended for deregistration. new text end 6.3     new text begin Subd. 4. new text end new text begin Program modification. new text end new text begin To apply for modification of or change to a new text end 6.4 new text begin registered program, a sponsor shall submit a written request for modification to the new text end 6.5 new text begin division. The division shall approve or disapprove a modification request within 90 days new text end 6.6 new text begin from the date of receipt. If approved, the modification or change must be recorded and new text end 6.7 new text begin acknowledged within 90 days of its approval as an amendment to the registered program. new text end 6.8 new text begin If not approved, the division shall notify the sponsor in writing of the disapproval and the new text end 6.9 new text begin reasons for the disapproval. The division may provide technical assistance to a sponsor new text end 6.10 new text begin seeking to modify or change a registered program. new text end 6.11     new text begin Subd. 5. new text end new text begin Notice. new text end new text begin When an application is submitted under subdivision 1 by an new text end 6.12 new text begin employer or employers' association, and where the standards, collective bargaining new text end 6.13 new text begin agreement, or other instrument provides for participation by a union in any manner in the new text end 6.14 new text begin operation of the substantive matters of the apprenticeship program, and the participation new text end 6.15 new text begin is exercised, a written acknowledgment of the union's agreement or a written statement new text end 6.16 new text begin specifying that the union has no objection to the registration is required. Where no union new text end 6.17 new text begin participation is evidenced and practiced, the employer or employers' association shall new text end 6.18 new text begin simultaneously furnish to the union, if any, which functions as the collective bargaining new text end 6.19 new text begin agent of the employees to be trained, a copy of its application for registration and the new text end 6.20 new text begin apprenticeship program. The commissioner shall provide a reasonable time of not less new text end 6.21 new text begin than 30 days nor more than 60 days for receipt of union comments, if any, before final new text end 6.22 new text begin action on the application for registration is taken. Union comments must be submitted to new text end 6.23 new text begin the division during the time period specified by the commissioner. new text end 6.24     new text begin Subd. 6. new text end new text begin Certificate. new text end new text begin Upon registration of a program, the commissioner shall issue a new text end 6.25 new text begin certificate of registration to the sponsor. Within 30 days after the certificate is mailed or new text end 6.26 new text begin otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of new text end 6.27 new text begin at least one executed apprenticeship agreement. new text end 6.28     new text begin Subd. 7. new text end new text begin Policy requirement. new text end new text begin It must be the policy of the employer and sponsor new text end 6.29 new text begin that the recruitment, selection, employment, and training of apprentices during their new text end 6.30 new text begin apprenticeship must be without discrimination due to race, color, creed, religion, national new text end 6.31 new text begin origin, sex, sexual orientation, marital status, physical or mental disability, receipt of new text end 6.32 new text begin public assistance, or age. The employer and sponsor must take affirmative action to new text end 6.33 new text begin provide equal opportunity in apprenticeship and must operate the apprenticeship program new text end 6.34 new text begin as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota new text end 6.35 new text begin plan for equal opportunity in apprenticeship. new text end 6.36 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 7.1    Sec. 6. new text begin [178.036] STANDARDS OF APPRENTICESHIP. new text end 7.2     new text begin Subdivision 1. new text end new text begin Federal uniformity. new text end new text begin Each program must have an organized, written new text end 7.3 new text begin plan of program standards embodying the terms and conditions of employment, training, new text end 7.4 new text begin and supervision of one or more apprentices in an apprenticeable trade or occupation, as new text end 7.5 new text begin defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by new text end 7.6 new text begin a sponsor and employer who has undertaken to carry out the apprentice training program. new text end 7.7 new text begin The program standards must contain the provisions that address each item identified in new text end 7.8 new text begin Code of Federal Regulations, title 29, part 29, section 29.5(b). new text end 7.9     new text begin Subd. 2. new text end new text begin Standards. new text end new text begin (a) In addition to the requirements in subdivision 1, the new text end 7.10 new text begin program standards must also contain provisions in compliance with paragraphs (b) to (k): new text end 7.11 new text begin (b) new text end new text begin Related instruction. new text end new text begin A minimum of 144 hours of related instruction is required new text end 7.12 new text begin in each training cycle. At least 50 hours of related safety instruction is required during the new text end 7.13 new text begin term of apprenticeship. Time spent in related instruction cannot be considered as hours of new text end 7.14 new text begin work as required by the job process schedule. Every apprenticeship instructor must meet new text end 7.15 new text begin the Department of Education's requirements for a vocational-technical instructor or be a new text end 7.16 new text begin subject matter expert, which is an individual such as a journeyworker who is recognized new text end 7.17 new text begin within an industry as having expertise in a specific trade or occupation. new text end 7.18 new text begin (c) new text end new text begin Job process schedule. new text end new text begin Each time-based apprenticeship program must include new text end 7.19 new text begin not less than 2,000 hours of reasonably continuous employment. new text end 7.20 new text begin (d) new text end new text begin Ratios. new text end new text begin If the apprentice is covered by a collective bargaining agreement, the new text end 7.21 new text begin employer must follow the provisions of the collective bargaining agreement regarding the new text end 7.22 new text begin maximum number of apprentices to be employed at the work site for each journeyworker new text end 7.23 new text begin employed at the same work site. In the absence of a collective bargaining agreement, for new text end 7.24 new text begin the purposes of direct supervision and the safety and instruction of the apprentice, the new text end 7.25 new text begin ratio shall be: new text end 7.26 new text begin (1) one apprentice for the first journeyworker employed at the work site plus one new text end 7.27 new text begin apprentice for each additional three journeyworkers employed at the work site; new text end 7.28 new text begin (2) the work site ratio utilized by the majority of registered apprenticeship new text end 7.29 new text begin agreements in the same trade or occupation; or new text end 7.30 new text begin (3) a program-specific ratio that has been approved by the Apprenticeship Advisory new text end 7.31 new text begin Board. new text end 7.32 new text begin (e) new text end new text begin Graduated schedule of wages. new text end new text begin The graduated schedule of wages for an new text end 7.33 new text begin apprenticeship program shall be calculated as a percentage of the journeyworker rate in new text end 7.34 new text begin the majority of registered apprenticeship agreements in the same trade or occupation in the new text end 7.35 new text begin state. If there are no registered apprenticeship agreements in the same trade or occupation, new text end 7.36 new text begin the graduated schedule of wages may be determined by the sponsor. new text end 8.1 new text begin (f) new text end new text begin Probationary period. new text end new text begin The standards must provide a period of probation of not new text end 8.2 new text begin more than 500 hours of employment and instruction extending over not more than four new text end 8.3 new text begin months, during which time the apprenticeship agreement shall be terminated by the director new text end 8.4 new text begin upon written request of either party, and providing that after such probationary period the new text end 8.5 new text begin apprenticeship agreement may be terminated by the director by mutual agreement of all new text end 8.6 new text begin parties thereto, or terminated by the director for good and sufficient reason. new text end 8.7 new text begin (g) new text end new text begin Dispute resolution. new text end new text begin The program standards must include a provision that new text end 8.8 new text begin controversies or differences concerning the terms of the apprenticeship agreement which new text end 8.9 new text begin cannot be resolved by the parties thereto, or which are not covered by a collective new text end 8.10 new text begin bargaining agreement, may be submitted to the commissioner for determination as new text end 8.11 new text begin provided for in section 178.09. new text end 8.12 new text begin (h) new text end new text begin Term of apprenticeship. new text end new text begin The term of apprenticeship may be measured either new text end 8.13 new text begin through: new text end 8.14 new text begin (1) the time-based approach, which requires completion of at least 2,000 work new text end 8.15 new text begin hours of on-the-job training; new text end 8.16 new text begin (2) the competency-based approach, which requires the attainment of competency; or new text end 8.17 new text begin (3) the hybrid approach, which is a blend of the time-based and competency-based new text end 8.18 new text begin approaches. new text end 8.19 new text begin (i) new text end new text begin Training cycle. new text end new text begin The training cycle for related instruction must be designated in new text end 8.20 new text begin hours, days, or months for each individual trade or occupation included in the standards. new text end 8.21 new text begin (j) new text end new text begin Responsibilities of the apprentice. new text end new text begin An apprentice employed under the program new text end 8.22 new text begin standards shall agree to be punctual and regular in attendance, and to endeavor to the best new text end 8.23 new text begin of the apprentice's ability to perfect the required skills for the trade or occupation. new text end 8.24 new text begin (k) new text end new text begin Coordination of apprentices. new text end new text begin The sponsor shall designate a qualified individual new text end 8.25 new text begin as a coordinator of apprentices who shall: new text end 8.26 new text begin (1) maintain an adequate record of progress in training each apprentice; new text end 8.27 new text begin (2) be responsible for assuring that the requirements of the applicable learning new text end 8.28 new text begin program are met during the prescribed training term; and new text end 8.29 new text begin (3) perform other duties as may be assigned by the sponsor relative to the new text end 8.30 new text begin development and operation of an effective program of apprenticeship. new text end 8.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 8.32    Sec. 7. Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read: 8.33    Subd. 2. Chapter 14 applies. Rules, modifications, amendments, and repeals 8.34thereof which may be issued by the commissioner under this section new text begin chapter new text end shall be 8.35adopted in accordance with chapter 14 and shall have the force and effect of law. 9.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 9.2    Sec. 8. new text begin [178.044] DETERMINATION OF APPRENTICE WAGES. new text end 9.3     new text begin Subdivision 1. new text end new text begin Maximum hours. new text end new text begin The maximum number of hours of work per week new text end 9.4 new text begin shall not exceed either the number prescribed by law or the customary regular number of new text end 9.5 new text begin hours per week for the employees of the company by which the apprentice is employed. new text end 9.6 new text begin Time spent in related and supplemental instruction for any apprentice shall not be included new text end 9.7 new text begin in the maximum number of hours of work per workweek. new text end 9.8     new text begin Subd. 2. new text end new text begin Overtime. new text end new text begin An apprentice may be allowed to work overtime provided that new text end 9.9 new text begin the overtime work does not conflict with related instruction course attendance. All time new text end 9.10 new text begin in excess of the number of hours of work per week as specified in the apprenticeship new text end 9.11 new text begin agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall new text end 9.12 new text begin be increased by the same percentage as the journeyworker's rate of pay for overtime is new text end 9.13 new text begin increased in the same industry or establishment. new text end 9.14     new text begin Subd. 3. new text end new text begin Journeyworker wage rate. new text end new text begin If the apprentice is not covered by a collective new text end 9.15 new text begin bargaining agreement, the journeyworker wage rate upon which the apprentice agreement new text end 9.16 new text begin graduated schedule of wages is calculated shall be: new text end 9.17 new text begin (1) the most current Minnesota state prevailing wage rate determination for the new text end 9.18 new text begin same trade or occupation in the county in which the apprentice's employer is located. If new text end 9.19 new text begin an apprenticeship agreement entered into after January 1, 2015, does not specify fringe new text end 9.20 new text begin benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated new text end 9.21 new text begin must be the total rate listed in the wage determination; or new text end 9.22 new text begin (2) if there is no Minnesota prevailing wage rate determination for the same trade or new text end 9.23 new text begin occupation in the county in which the apprentice's employer is located, the journeyworker new text end 9.24 new text begin wage may be determined by the sponsor with the approval of the division. new text end 9.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 9.26    Sec. 9. Minnesota Statutes 2012, section 178.07, is amended to read: 9.27178.07 new text begin REGISTERED new text end APPRENTICESHIP AGREEMENTS. 9.28     new text begin Subdivision 1. new text end new text begin Approval required. new text end new text begin All terminations, cancellations, and transfers of new text end 9.29 new text begin apprenticeship agreements shall be approved by the division in writing. The division must new text end 9.30 new text begin be notified in writing by the sponsor within 45 days of all terminations, cancellations, new text end 9.31 new text begin or transfer of apprenticeship agreements. new text end 9.32     new text begin Subd. 2. new text end new text begin Signatures required. new text end new text begin Apprenticeship agreements shall be signed by new text end 9.33 new text begin the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal new text end 10.1 new text begin guardian. When a minor enters into an apprenticeship agreement under this chapter for a new text end 10.2 new text begin period of learning extending into majority, the apprenticeship agreement shall likewise be new text end 10.3 new text begin binding for such a period as may be covered during the apprentice's majority. new text end 10.4     new text begin Subd. 3. new text end new text begin Contents. new text end Every apprenticeship agreement entered into under this chapter 10.5shall contain: 10.6(1) the names of the contracting parties new text begin , and the signatures required by subdivision 1 new text end ; 10.7(2) the date of birth, and information as to the race and sex of the apprentice new text begin , and, on new text end 10.8 new text begin a voluntary basis, the apprentice's Social Security number new text end ; 10.9(3) a statement of the trade, craft, occupation, or business which the apprentice is to 10.10be taught, and the time at which the apprenticeship will begin and end; 10.11 new text begin (3) contact information of the sponsor and the division; new text end 10.12(4) a statement showing new text begin of the trade or occupation which the apprentice is to be new text end 10.13 new text begin taught, the date on which the apprenticeship will begin, and new text end the number of hours to be 10.14spent by the apprentice in work and the number of hours to be spent in concurrent, 10.15supplementary instruction in related subjects, which instruction shall be not less than 144 10.16hours during each year of the apprenticeship term. The maximum number of hours of 10.17work per week not including time spent in related and supplemental instruction for any 10.18apprentice shall not exceed either the number prescribed by law or the customary regular 10.19number of hours per week for the employees of the company by which the apprentice is 10.20employed. An apprentice may be allowed to work overtime provided that the overtime 10.21work does not conflict with supplementary instruction course attendance. All time in 10.22excess of the number of hours of work per week as specified in the apprenticeship 10.23agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall 10.24be increased by the same percentage as the journeyworker's rate of pay for overtime is 10.25increased in the same industry or establishment new text begin related instruction new text end ; 10.26(5) a statement setting forth a schedule of the processes in the trade, occupation, 10.27or industry divisions in which the apprentice is to be taught and the approximate time to 10.28be spent at each process; 10.29(6) new text begin (5) new text end a statement of the graduated scale of wages to be paid the apprentice 10.30and whether the required school time shall be compensated new text begin under sections 178.036, new text end 10.31 new text begin subdivision 2, paragraph (e), and 178.044, as applicable new text end ; 10.32(7) new text begin (6) new text end a statement providing for a period of probation of not more than 500 hours 10.33of employment and instruction extending over not more than four months, during which 10.34time the apprenticeship agreement shall be terminated by the director upon written request 10.35of either party, and providing that after such probationary period the apprenticeship 10.36agreement may be terminated by the director by mutual agreement of all parties thereto, 11.1or terminated by the director for good and sufficient reason new text begin listing any fringe benefits new text end 11.2 new text begin to be provided to the apprentice new text end ; 11.3(8) a provision that controversies or differences concerning the terms of the 11.4apprenticeship agreement which cannot be resolved by the parties thereto, or which are 11.5not covered by a collective bargaining agreement, may be submitted to the director for 11.6determination as provided for in section ; 11.7(9) a provision that an employer who is unable to fulfill an obligation under the 11.8apprenticeship agreement may, with the approval of the director, transfer such contract to 11.9any other employer, provided that the apprentice consents and that such other employer 11.10agrees to assume the obligations of the apprenticeship agreement; and 11.11 new text begin (7) a statement incorporating as part of the agreement the registered standards of new text end 11.12 new text begin the apprenticeship program on the date of the agreement and as they may be amended new text end 11.13 new text begin during the period of the agreement; new text end 11.14 new text begin (8) a statement that the apprentice will be accorded equal opportunity in all phases new text end 11.15 new text begin of apprenticeship employment and training, without discrimination due to race, color, new text end 11.16 new text begin creed, religion, national origin, sex, sexual orientation, marital status, physical or mental new text end 11.17 new text begin disability, receipt of public assistance, or age; and new text end 11.18(10) new text begin (9) new text end such additional terms and conditions as may be prescribed or approved by 11.19the director new text begin commissioner new text end not inconsistent with the provisions of this chapter. 11.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 11.21    Sec. 10. Minnesota Statutes 2012, section 178.09, is amended to read: 11.22178.09 INVESTIGATIONS BY DIRECTOR new text begin AND ENFORCEMENT OF new text end 11.23 new text begin APPRENTICESHIP AGREEMENTS new text end . 11.24    Subdivision 1. Complaint. Upon the complaint of any interested person or upon the 11.25director's new text begin division's new text end own initiative new text begin , new text end the director new text begin division new text end may investigate to determine if 11.26there has been a violation of the terms of an apprenticeship agreement made under this 11.27chapter. new text begin Complaints must be made in writing within 60 days of the events giving rise to the new text end 11.28 new text begin complaint and must set forth the specific matters complained of together with relevant facts new text end 11.29 new text begin and circumstances. Copies of pertinent documents and correspondence must accompany new text end 11.30 new text begin the complaint. new text end The director new text begin division new text end may conduct such proceedings as are necessary for 11.31that investigation and determination. All such proceedings shall be on a fair and impartial 11.32basis and shall be conducted according to rules promulgated under section . 11.33    Subd. 2. Determination; appeal. new text begin Within 90 days after the receipt of a complaint, new text end 11.34 new text begin the division must issue a determination. new text end The determination of the director new text begin division new text end shall 12.1be filed with the commissioner and written notice shall be served on all parties affected 12.2by it. Any person aggrieved by any determination or action of the director may appeal 12.3to the commissioner. If no appeal is filed with the commissioner within ten days of the 12.4date of service, the director's new text begin division's new text end determination shall become the new text begin final new text end order of the 12.5commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing 12.6board to be composed of three members of the Apprenticeship new text begin Advisory new text end Board appointed 12.7under section 178.02, one member being a representative of an employer organization, one 12.8representative being a member of an employee organization, and one member representing 12.9the general public. The board shall hold a hearing on the appeal after due notice to the 12.10interested parties and shall submit to the commissioner findings of fact and a recommended 12.11decision accompanied by a memorandum of the reasons for it. Within 30 days after 12.12submission, the commissioner may adopt the recommended decision of the board, or 12.13disregard the recommended decision of the board and prepare a decision based on the 12.14findings of fact and accompanied by a memorandum of reasons for that decision. Written 12.15notice of the commissioner's determination and order shall be served on all parties affected 12.16by it. Any person aggrieved or affected by any new text begin the commissioner's new text end determination or order 12.17of the commissioner may appeal from it to the district court having jurisdiction at any time 12.18within 30 days after the date of the order by service of a written notice of appeal on the 12.19commissioner. Upon service of the notice of appeal, the commissioner shall file with the 12.20court administrator of the district court to which the appeal is taken a certified copy of the 12.21order appealed from, together with findings of fact on which it is based. The person serving 12.22a notice of appeal shall, within five days after its service, file it, with proof of service, with 12.23the court administrator of the court to which the appeal is taken. The district court shall 12.24then have jurisdiction over the appeal and it shall be entered in the records of the district 12.25court and tried de novo according to the applicable rules. Any person aggrieved or affected 12.26by any determination, order, or decision of the district court may appeal as in other civil 12.27cases new text begin and order under this section is entitled to judicial review under sections 14.63 to new text end 12.28 new text begin 14.68 in the same manner that a person aggrieved by a final decision in a contested case is new text end 12.29 new text begin entitled to judicial review. The commissioner's determination and order under this section new text end 12.30 new text begin shall be a final decision and order of the department for purposes of sections 14.63 to 14.68 new text end . 12.31     new text begin Subd. 3. new text end new text begin Service. new text end new text begin Service under this chapter may be by certified first class mail, new text end 12.32 new text begin personal service, or in accordance with any consent to service filed with the commissioner. new text end 12.33 new text begin Service by mail shall be accomplished in the manner provided in Minnesota Rules, part new text end 12.34 new text begin 1400.5550, subpart 2. Personal service shall be accomplished in the manner provided in new text end 12.35 new text begin Minnesota Rules, part 1400.5550, subpart 3. new text end 12.36 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 13.1    Sec. 11. new text begin [178.091] INVESTIGATIONS AND ENFORCEMENT; new text end 13.2 new text begin APPRENTICESHIP PROGRAMS AND STANDARDS. new text end 13.3     new text begin Subdivision 1. new text end new text begin Investigations. new text end new text begin In order to carry out the purposes of this chapter, new text end 13.4 new text begin the commissioner may investigate registered apprenticeship programs and applicants new text end 13.5 new text begin for program registration to determine whether there are any grounds for deregistration new text end 13.6 new text begin of a registered program or for the denial of an application. Persons requested by the new text end 13.7 new text begin commissioner to provide information or produce documents shall respond within 30 days new text end 13.8 new text begin of the commissioner's service of the request. new text end 13.9     new text begin Subd. 2. new text end new text begin Grounds. new text end new text begin (a) The commissioner may deregister a registered apprenticeship new text end 13.10 new text begin program or deny an application for registration if: new text end 13.11 new text begin (1) the program does not comply with any requirement of Code of Federal new text end 13.12 new text begin Regulations, title 29, part 29 or 32, this chapter, or any rule adopted pursuant to section new text end 13.13 new text begin 178.041; new text end 13.14 new text begin (2) the program does not have at least one registered apprentice in each trade or new text end 13.15 new text begin occupation, except for the following specified periods of time: new text end 13.16 new text begin (i) within the first 30 days after the date a program is registered; or new text end 13.17 new text begin (ii) within one year of the date that a program graduates an apprentice in a trade or new text end 13.18 new text begin occupation and the date of registration for the next apprentice in that trade or occupation; or new text end 13.19 new text begin (3) the program is not conducted, operated, or administered in accordance with new text end 13.20 new text begin the program's registered standards or with the requirements of this chapter, including new text end 13.21 new text begin but not limited to: new text end 13.22 new text begin (i) failure to provide on-the-job learning; new text end 13.23 new text begin (ii) failure to provide related instruction; new text end 13.24 new text begin (iii) failure of an employer to pay the apprentice a progressively increasing schedule new text end 13.25 new text begin of wages consistent with the apprentice's skills acquired; or new text end 13.26 new text begin (iv) persistent and significant failure to perform successfully. new text end 13.27 new text begin (b) The commissioner may deregister an apprenticeship program at the written new text end 13.28 new text begin request of the sponsor in a manner consistent with the provisions of Code of Federal new text end 13.29 new text begin Regulations, title 29, part 29, section 29.8(a). new text end 13.30     new text begin Subd. 3. new text end new text begin Reinstatement. new text end new text begin If the commissioner deregisters a registered apprenticeship new text end 13.31 new text begin program, the sponsor may request reinstatement not before one year after the effective new text end 13.32 new text begin date of the deregistration. The commissioner may, as a condition of reinstatement, require new text end 13.33 new text begin the sponsor to comply with reasonable conditions the commissioner considers necessary new text end 13.34 new text begin to effectuate the purposes of this chapter. new text end 13.35     new text begin Subd. 4. new text end new text begin Orders; hearings related to orders. new text end new text begin (a) If the commissioner determines new text end 13.36 new text begin that a registered apprenticeship program should be deregistered or that an application for new text end 14.1 new text begin registration should be denied, the commissioner shall issue to and serve on the sponsor an new text end 14.2 new text begin order deregistering the program's registration or denying the application for registration. new text end 14.3 new text begin (b) An order issued under this subdivision must specify: new text end 14.4 new text begin (1) the deficiency and the required remedy or corrective action; new text end 14.5 new text begin (2) the time period to effectuate the required remedy or corrective action, which new text end 14.6 new text begin shall be no more than 90 days; and new text end 14.7 new text begin (3) any other requirement consistent with Code of Federal Regulations, title 29, new text end 14.8 new text begin part 29, section 29.8(b). new text end 14.9 new text begin (c) The sponsor to whom the commissioner issues an order under this subdivision new text end 14.10 new text begin may appeal to a hearing board appointed consistent with section 178.09, subdivision 2. new text end 14.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 14.12    Sec. 12. Minnesota Statutes 2012, section 178.10, is amended to read: 14.13178.10 LIMITATION. 14.14 new text begin (a) new text end The provisions of this chapter shall have no application to those infants 14.15 new text begin individuals new text end who are apprenticed by the commissioner of corrections pursuant to sections 14.16242.43 and 242.44. 14.17 new text begin (b) Nothing in this chapter or any apprenticeship agreement operates to invalidate: new text end 14.18 new text begin (1) any apprenticeship provision in any collective bargaining agreement between new text end 14.19 new text begin employers and employees establishing higher apprenticeship standards; or new text end 14.20 new text begin (2) any special provision for veterans, minority persons, or women, in the standards, new text end 14.21 new text begin apprentice qualifications, or operation of the program or in the apprenticeship agreement new text end 14.22 new text begin which is not otherwise prohibited by law. new text end 14.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 14.24    Sec. 13. Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read: 14.25    Subd. 4. Independent contractor. (a) An individual is an independent contractor 14.26and not an employee of the person for whom the individual is performing services in the 14.27course of the person's trade, business, profession, or occupation only if the individual is 14.28registered with the Department of Labor and Industry, if required under subdivision 4a, 14.29and the individual: 14.30(1) maintains a separate business with the individual's own office, equipment, 14.31materials, and other facilities; 15.1(2)(i) holds or has applied for a federal employer identification number or (ii) has 15.2filed business or self-employment income tax returns with the federal Internal Revenue 15.3Service if the individual has performed services in the previous year; 15.4(3) is operating under contract to perform the specific services for the person 15.5for specific amounts of money and under which the individual controls the means of 15.6performing the services; 15.7(4) is incurring the main expenses related to the services that the individual is 15.8performing for the person under the contract; 15.9(5) is responsible for the satisfactory completion of the services that the individual 15.10has contracted to perform for the person and is liable for a failure to complete the services; 15.11(6) receives compensation from the person for the services performed under the 15.12contract on a commission or per-job or competitive bid basis and not on any other basis; 15.13(7) may realize a profit or suffer a loss under the contract to perform services for 15.14the person; 15.15(8) has continuing or recurring business liabilities or obligations; and 15.16(9) the success or failure of the individual's business depends on the relationship of 15.17business receipts to expenditures. 15.18 new text begin An individual who is not registered, if required by section 326B.701, is presumed to new text end 15.19 new text begin be an employee of a person for whom the individual performs services in the course of new text end 15.20 new text begin the person's trade, business, profession, or occupation. The person for whom the services new text end 15.21 new text begin were performed may rebut this presumption by showing that the unregistered individual new text end 15.22 new text begin met all nine factors in this paragraph at the time the services were performed. new text end 15.23(b) If an individual is an owner or partial owner of a business entity, the individual is 15.24an employee of the person for whom the individual is performing services in the course 15.25of the person's trade, business, profession, or occupation, and is not an employee of the 15.26business entity in which the individual has an ownership interest, unless: 15.27(1) the business entity meets the nine factors in paragraph (a); 15.28(2) invoices new text begin and payments new text end are submitted in the name of the business entity; new text begin and new text end 15.29(3) the business entity is registered with the secretary of state, if required; and new text begin . new text end 15.30(4) the business entity is registered with the Department of Labor and Industry, 15.31if required under subdivision 4a. 15.32 new text begin If the business entity in which the individual has an ownership interest is not new text end 15.33 new text begin registered, if required by section 326B.701, the individual is presumed to be an employee new text end 15.34 new text begin of a person for whom the individual performs services and not an employee of the business new text end 15.35 new text begin entity in which the individual has an ownership interest. The person for whom the services new text end 16.1 new text begin were performed may rebut the presumption by showing that the business entity met the new text end 16.2 new text begin requirements of clauses (1) to (3) at the time the services were performed. new text end 16.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 16.4    Sec. 14. Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read: 16.5    Subd. 4a. new text begin Applicability; new text end registration pilot project new text begin requirement new text end . (a) The 16.6commissioner shall implement a pilot project, effective July 1, 2012, for the registration 16.7of Persons who perform public or private sector commercial or residential building 16.8construction or improvement services as described in subdivision 2 new text begin must register with the new text end 16.9 new text begin commissioner as provided in this section new text end . The purpose of the pilot project is to evaluate 16.10whether the information obtained through registration assists new text begin registration is to assist new text end 16.11 the Department of Labor and Industry, the Department of Employment and Economic 16.12Development, and the Department of Revenue to enforce laws related to misclassification 16.13of employees. The commissioner shall issue a report to the legislature no later than 16.14January 1, 2014, on recommendations for amendments to the registration program, 16.15including reasonable registration fees to be used to aid in enforcing misclassification laws. 16.16The commissioner must not charge a fee for registration under the pilot project, but may 16.17take the enforcement action specified in subdivision 8a. The pilot project shall expire on 16.18June 30, 2014, unless extended by the legislature. 16.19(b) Except as provided in paragraph (c), any person who performs construction 16.20services in the state on or after September 15, 2012, must register with the commissioner 16.21as provided in subdivision 5 new text begin section 326B.701 new text end before performing construction services for 16.22another person. The requirements for registration under this subdivision new text begin section 326B.701 new text end 16.23 are not a substitute for, and do not relieve a person from complying with, any other law 16.24requiring that the person be licensed, registered, or certified. 16.25(c) The registration requirements in this subdivision new text begin section 326B.701 new text end do not apply to: 16.26(1) a person who, at the time the person is performing the construction services, 16.27holds a current license, certificate, or registration under chapter 299M or 326B; 16.28(2) a person who holds a current independent contractor exemption certificate 16.29issued under this section that is in effect on September 15, 2012, except that the person 16.30must register under this section new text begin 326B.701 new text end no later than the date the exemption certificate 16.31expires, is revoked, or is canceled; 16.32(3) a person who has given a bond to the state under section 326B.197 or 326B.46; 16.33(4) an employee of the person performing the construction services, if the person 16.34was in compliance with laws related to employment of the individual at the time the 16.35construction services were performed; 17.1(5) an architect or professional engineer engaging in professional practice as defined 17.2in section 326.02, subdivisions 2 and 3; 17.3(6) a school district or technical college governed under chapter 136F; 17.4(7) a person providing construction services on a volunteer basis, including but not 17.5limited to Habitat for Humanity and Builders Outreach Foundation, and their individual 17.6volunteers when engaged in activities on their behalf; or 17.7(8) a person exempt from licensing under section 326B.805, subdivision 6, clause (5). 17.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 17.9    Sec. 15. Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read: 17.10    Subd. 5. Registration application. (a) Persons required to register under 17.11subdivision 4a new text begin section 326B.701 new text end must submit electronically, in the manner prescribed by 17.12the commissioner, a complete application according to paragraphs (b) to (d). 17.13    (b) A complete application must include all of the following information about any 17.14individual who is registering as an individual or a sole proprietor, or who owns 25 percent 17.15or more of a business entity being registered: 17.16    (1) the individual's full legal name and title at the applicant's business; 17.17    (2) the individual's business address and telephone number; 17.18    (3) the percentage of the applicant's business owned by the individual; and 17.19    (4) the individual's Social Security number. 17.20(c) A complete application must also include the following information: 17.21(1) the applicant's legal name; assumed name filed with the secretary of state, if any; 17.22designated business address; physical address; telephone number; and e-mail address; 17.23(2) the applicant's Minnesota tax identification number, if one is required or has 17.24been issued; 17.25(3) the applicant's federal employer identification number, if one is required or 17.26has been issued; 17.27(4) evidence of the active status of the applicant's business filings with the secretary 17.28of state, if one is required or has been issued; 17.29(5) whether the applicant has any employees at the time the application is filed; 17.30(6) the names of all other persons with an ownership interest in the business entity 17.31who are not identified in paragraph (b), and the percentage of the interest owned by each 17.32person, except that the names of shareholders with less than ten percent ownership in a 17.33publicly traded corporation need not be provided; 17.34(7) information documenting compliance with workers' compensation and 17.35unemployment insurance laws; 18.1(8) a certification that the person signing the application has: reviewed it; determined 18.2that the information provided is true and accurate; and determined that the person signing 18.3is authorized to sign and file the application as an agent of the applicant. The name of the 18.4person signing, entered on an electronic application, shall constitute a valid signature of 18.5the agent on behalf of the applicant; and 18.6(9) a signed authorization for the Department of Labor and Industry to verify the 18.7information provided on or with the application. 18.8(d) A registered person must notify the commissioner within 15 days after there is a 18.9change in any of the information on the application as approved. This notification must 18.10be provided electronically in the manner prescribed by the commissioner. However, if 18.11the business entity structure, legal form of the business entity, or business ownership has 18.12changed, the person must submit a new registration application and registration fee, if 18.13any, for the new business entity. 18.14(e) The registered person must remain registered while providing construction 18.15services for another person. The provisions of sections 326B.091 and new text begin , new text end 326B.094 to new text begin , new text end 18.16 new text begin 326B.095, and new text end 326B.097 apply to this section new text begin 326B.701 new text end . new text begin A person with an expired new text end 18.17 new text begin registration shall not provide construction services for another person if registration is new text end 18.18 new text begin required under this section. Registration application and expiration time frames are as new text end 18.19 new text begin follows: new text end 18.20 new text begin (1) all registrations issued on or before June 30, 2015, expire on June 30, 2015; new text end 18.21 new text begin (2) all registrations issued after June 30, 2015, expire on the following June 30 new text end 18.22 new text begin of each odd-numbered year; and new text end 18.23 new text begin (3) a person may submit a registration or renewal application starting April 1 of the new text end 18.24 new text begin year the registration expires. If a renewal application is submitted later than May 1 of new text end 18.25 new text begin the expiration year, registration may expire before the department has issued or denied new text end 18.26 new text begin the registration. new text end 18.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 18.28    Sec. 16. Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read: 18.29    Subd. 7. Prohibited activities new text begin related to independent contractor status new text end . (a) The 18.30prohibited activities in this subdivision are in addition to those prohibited in sections 18.31326B.081 to 326B.085. 18.32    (b) An individual shall not hold himself or herself out as an independent contractor 18.33unless the individual meets the requirements of subdivision 4. 18.34    (c) A person who provides construction services in the course of the person's trade, 18.35business, occupation, or profession shall not: 19.1    (1) require an individual through coercion, misrepresentation, or fraudulent means to 19.2adopt independent contractor status or form a business entity; 19.3    (2) knowingly misrepresent or misclassify an individual as an independent 19.4contractor; new text begin . new text end 19.5     new text begin Subd. 7a. new text end new text begin Prohibited activities related to registration. new text end new text begin (a) The prohibited activities new text end 19.6 new text begin in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085. new text end 19.7 new text begin (b) A person who provides construction services in the course of the person's trade, new text end 19.8 new text begin business, occupation, or profession shall not: new text end 19.9    (3) new text begin (1) new text end contract with or perform construction services for another person without first 19.10being registered if required by subdivision 4a new text begin section 326B.701 new text end ; 19.11(4) new text begin (2) new text end contract with or pay another person to perform construction services if 19.12the other person is not registered if required by subdivision 4a. All payments to an 19.13unregistered person for construction services on a single project site shall be considered a 19.14single violation. It is not a violation of this clause: 19.15(i) for a person to contract with or pay an unregistered person if the unregistered 19.16person was registered at the time the contract for construction services was entered into; or 19.17(ii) for a homeowner or business to contract with or pay an unregistered person if 19.18the homeowner or business is not in the trade, business, profession, or occupation of 19.19performing building construction or improvement services; or 19.20(5) new text begin (3) new text end be penalized for violations of this subdivision that are committed by another 19.21person. This clause applies only to violations of this paragraph. 19.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 19.23    Sec. 17. Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read: 19.24    Subd. 8a. Enforcement; remedies; and penalties. new text begin (a) new text end Notwithstanding the 19.25maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum 19.26penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if 19.27the person registers within 30 days of the date of the penalty order. 19.28 new text begin (b) The penalty for contracting with or paying an unregistered person to perform new text end 19.29 new text begin construction services in violation of subdivision 7a, paragraph (b), clause (2), shall be as new text end 19.30 new text begin provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive new text end 19.31 new text begin the penalty for the first violation. new text end 19.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 19.33    Sec. 18. Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read: 20.1    Subd. 2. new text begin Public buildings and state-licensed facilities; new text end administration by 20.2commissioner. new text begin Unless the commissioner has entered into an agreement under subdivision new text end 20.3 new text begin 2a or 2b, new text end the commissioner shall administer and enforce the State Building Code as a 20.4municipality with respect to public buildings and state new text begin - new text end licensed facilities in the state. 20.5The commissioner shall establish appropriate permit, plan review, inspection fees, and 20.6surcharges for public buildings and state new text begin - new text end licensed facilities. 20.7    Municipalities other than the state having an agreement with the commissioner 20.8for code administration and enforcement service for public buildings and state licensed 20.9facilities shall charge their customary fees, including surcharge, to be paid directly to the 20.10jurisdiction by the applicant seeking authorization to construct a public building or a state 20.11licensed facility. The commissioner shall sign an agreement with a municipality other than 20.12the state for plan review, code administration, and code enforcement service for public 20.13buildings and state licensed facilities in the jurisdiction if the building officials of the 20.14municipality meet the requirements of section and wish to provide those services 20.15and if the commissioner determines that the municipality has enough adequately trained 20.16and qualified building inspectors to provide those services for the construction project. 20.17    The commissioner may direct the state building official to assist a community that 20.18has been affected by a natural disaster with building evaluation and other activities related 20.19to building codes. 20.20    Administration and enforcement in a municipality under this section must apply 20.21any optional provisions of the State Building Code adopted by the municipality. A 20.22municipality adopting any optional code provision shall notify the state building official 20.23within 30 days of its adoption. 20.24    The commissioner shall administer and enforce the provisions of the code relating to 20.25elevators statewide, except as provided for under section 326B.184, subdivision 4. 20.26    Sec. 19. Minnesota Statutes 2012, section 326B.106, is amended by adding a 20.27subdivision to read: 20.28     new text begin Subd. 2a. new text end new text begin Public buildings and state-licensed facilities; municipal agreement new text end 20.29 new text begin for all building projects. new text end new text begin (a) The commissioner shall enter into an agreement with a new text end 20.30 new text begin municipality other than the state for plan review, inspection, code administration, and new text end 20.31 new text begin code enforcement on public buildings and state-licensed facilities in the jurisdiction if new text end 20.32 new text begin the municipality requests to provide those services and the commissioner determines new text end 20.33 new text begin that the municipality has enough adequately trained and qualified inspectors to provide new text end 20.34 new text begin those services. In determining whether a municipality has enough adequately trained and new text end 20.35 new text begin qualified inspectors to provide the service, the commissioner must consider all inspectors new text end 21.1 new text begin who are employed by the municipality, are under contract with the municipality to provide new text end 21.2 new text begin inspection services, or are obligated to provide inspection services to the municipality new text end 21.3 new text begin under any other lawful agreement. new text end 21.4 new text begin (b) The criteria used to make this determination shall be provided in writing to new text end 21.5 new text begin the municipality requesting an agreement. new text end 21.6 new text begin (c) If the commissioner determines that the municipality lacks enough adequately new text end 21.7 new text begin trained and qualified inspectors to provide the required services, a written explanation of new text end 21.8 new text begin the deficiencies shall be provided to the municipality. new text end 21.9 new text begin (d) The municipality shall be given an opportunity to remedy any deficiencies new text end 21.10 new text begin and request reconsideration of the commissioner's determination. A request for new text end 21.11 new text begin reconsideration must be in writing and accompanied by substantiating documentation. A new text end 21.12 new text begin request for reconsideration must be received by the commissioner within 90 days of the new text end 21.13 new text begin determination explanation. The commissioner shall review the information and issue a new text end 21.14 new text begin final determination to the municipality within 30 days of the request. new text end 21.15 new text begin (e) A municipality aggrieved by a final decision of the commissioner to not enter into new text end 21.16 new text begin an agreement may appeal to be heard as a contested case in accordance with chapter 14. new text end 21.17    Sec. 20. Minnesota Statutes 2012, section 326B.106, is amended by adding a 21.18subdivision to read: 21.19     new text begin Subd. 2b. new text end new text begin Public buildings and state-licensed facilities; municipal agreement new text end 21.20 new text begin for certain building projects. new text end new text begin The commissioner shall enter into an agreement with a new text end 21.21 new text begin municipality other than the state for inspection, code administration, and code enforcement new text end 21.22 new text begin of reserved projects occurring on public buildings and state-licensed facilities in its new text end 21.23 new text begin jurisdiction if the municipality has a designated building official as required by section new text end 21.24 new text begin 326B.133 and requests to provide those services. new text end 21.25 new text begin For purposes of this subdivision, "reserved projects" includes the following: new text end 21.26 new text begin (1) roof covering replacement that does not add roof load; new text end 21.27 new text begin (2) towers requiring special inspection; new text end 21.28 new text begin (3) single-level storage buildings not exceeding 5,000 square feet; new text end 21.29 new text begin (4) exterior maintenance work, including replacement of siding, windows, and doors; new text end 21.30 new text begin (5) HVAC unit replacement that does not add roof load or ventilation capacity; new text end 21.31 new text begin (6) accessibility upgrades not involving building additions or structural alterations; new text end 21.32 new text begin (7) remodeling that does not change the building's occupancy, structural system, exit new text end 21.33 new text begin access or discharge pattern, or mechanical load; and new text end 21.34 new text begin (8) other projects determined to be reserved by the commissioner. new text end 22.1    Sec. 21. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.2subdivision to read: 22.3     new text begin Subd. 2c. new text end new text begin Municipal fees. new text end new text begin Municipalities other than the state having an agreement new text end 22.4 new text begin under subdivision 2a with the commissioner for code administration and enforcement new text end 22.5 new text begin service for public buildings and state-licensed facilities or inspecting under authority of new text end 22.6 new text begin subdivision 2b shall charge their customary fees, including surcharge, to be paid directly new text end 22.7 new text begin to the jurisdiction by the applicant seeking authorization to construct a public building or new text end 22.8 new text begin a state-licensed facility. new text end 22.9    Sec. 22. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.10subdivision to read: 22.11     new text begin Subd. 2d. new text end new text begin Public buildings and state-licensed facilities; municipal obligation. new text end 22.12 new text begin An agreement with the commissioner under subdivision 2a or 2b must require the new text end 22.13 new text begin municipality to attend to applicable aspects of code administration and enforcement as new text end 22.14 new text begin described in the agreement and established by rule. new text end 22.15    Sec. 23. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.16subdivision to read: 22.17     new text begin Subd. 2e. new text end new text begin Public buildings and state-licensed facilities; applicable code. new text end 22.18 new text begin Administration and enforcement in a municipality under subdivisions 2a and 2b must new text end 22.19 new text begin apply any optional provisions of the State Building Code adopted by the municipality. A new text end 22.20 new text begin municipality adopting any optional code provision shall notify the state building official new text end 22.21 new text begin within 30 days of its adoption. new text end 22.22    Sec. 24. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.23subdivision to read: 22.24     new text begin Subd. 2f. new text end new text begin Natural disasters. new text end new text begin The commissioner may direct the state building new text end 22.25 new text begin official to assist a community that has been affected by a natural disaster with building new text end 22.26 new text begin evaluation and other activities related to building codes. new text end 22.27    Sec. 25. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.28subdivision to read: 22.29     new text begin Subd. 2g. new text end new text begin Elevators. new text end new text begin The commissioner shall administer and enforce the provisions new text end 22.30 new text begin of the code relating to elevators statewide, except as provided for under section new text end new text begin 326B.184, new text end 22.31 new text begin subdivision 4 new text end new text begin . new text end 23.1    Sec. 26. new text begin [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION. new text end 23.2 new text begin The following definition applies to this section: "business entity" means a person new text end 23.3 new text begin other than an individual or a sole proprietor. new text end 23.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.5    Sec. 27. Minnesota Statutes 2012, section 326B.988, is amended to read: 23.6326B.988 EXCEPTIONS. 23.7    (a) The provisions of sections 326B.93 to 326B.998 shall not apply to: 23.8    (1) boilers and pressure vessels in buildings occupied solely for residence purposes 23.9with accommodations for not more than five families; 23.10    (2) railroad locomotives operated by railroad companies for transportation purposes; 23.11    (3) air tanks installed on the right-of-way of railroads and used directly in the 23.12operation of trains; 23.13    (4) boilers and pressure vessels under the direct jurisdiction of the United States; 23.14    (5) unfired pressure vessels having an internal or external working pressure not 23.15exceeding 15 psig with no limit on size; 23.16    (6) pressure vessels used for storage of compressed air not exceeding five cubic feet 23.17in volume and equipped with an ASME code stamped safety valve set at a maximum of 23.18100 psig; 23.19    (7) pressure vessels having an inside diameter not exceeding six inches; 23.20    (8) every vessel that contains water under pressure, including those containing air 23.21that serves only as a cushion, whose design pressure does not exceed 300 psig and whose 23.22design temperature does not exceed 210 degrees Fahrenheit; 23.23    (9) boiler or pressure vessels located on farms used solely for agricultural or 23.24horticultural purposes; for purposes of this section, boilers used for mint oil extraction 23.25are considered used for agricultural or horticultural purposes, provided that the owner or 23.26lessee complies with the inspection requirements contained in section 326B.958; 23.27    (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases; 23.28    (11) unfired pressure vessels in petroleum refineries; 23.29    (12) an air tank or pressure vessel which is an integral part of a passenger motor 23.30bus, truck, or trailer; 23.31    (13) hot water heating and other hot liquid boilers not exceeding a heat input of 23.32750,000 BTU per hour; 24.1    (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000 24.2BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity 24.3of 120 gallons, or a pressure of 160 psig; 24.4    (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume; 24.5    (16) pressure vessels operated full of water or other liquid not materially more 24.6hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees 24.7Fahrenheit or a pressure of 200 psig; 24.8    (17) steam-powered turbines at papermaking facilities which are powered by steam 24.9generated by steam facilities at a remote location; 24.10    (18) manually fired boilers for model locomotive, boat, tractor, stationary engine, 24.11or antique motor vehicles constructed or maintained only as a hobby for exhibition, 24.12educational or historical purposes and not for commercial use, if the boilers have an 24.13inside diameter of 12 inches or less, or a grate area of two square feet or less, and are 24.14equipped with an ASME stamped safety valve of adequate size, a water level indicator, 24.15and a pressure gauge; 24.16(19) any pressure vessel used as an integral part of an electrical circuit breaker; 24.17(20) pressure vessels used for the storage of refrigerant if they are built to ASME 24.18code specifications, registered with the national board, and equipped with an ASME 24.19code-stamped pressure-relieving device set no higher than the maximum allowable 24.20working pressure of the vessel. This does not include pressure vessels used in ammonia 24.21refrigeration systems; 24.22(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide, 24.23argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME 24.24or Minnesota Department of Transportation specifications and equipped with an ASME 24.25code-stamped pressure-relieving device. The owner of the vessels shall perform annual 24.26visual inspections and planned maintenance on these vessels to ensure vessel integrity; 24.27(22) pressure vessels used for the storage of compressed air for self-contained 24.28breathing apparatuses; 24.29(23) hot water heating or other hot liquid boilers vented directly to the atmosphere; 24.30and 24.31(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic 24.32feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or 24.33less. 24.34    (b) An engineer's license is not required for hot water supply boilers. 25.1    (c) An engineer's license and annual inspection by the department is not required 25.2for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not 25.3exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig. 25.4    (d) Electric boilers not exceeding a maximum working pressure of 50 psig, 25.5maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure 25.6vessels and shall not require an engineer license to operate. 25.7 new text begin (e) Sawmills, located in a county with a population of less than 8,000 according to new text end 25.8 new text begin the last federal census and that utilize steam for the drying of lumber, are not required to new text end 25.9 new text begin meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part new text end 25.10 new text begin 5225.1180, only if all of the following conditions are met: new text end 25.11 new text begin (1) the owner complies with the inspection requirements under section 326B.958, new text end 25.12 new text begin and the licensing requirements under section 326B.972; and new text end 25.13 new text begin (2) the boiler: new text end 25.14 new text begin (i) is equipped with electronic control systems that are remotely operated but which new text end 25.15 new text begin require on site manual reset of system faults; new text end 25.16 new text begin (ii) is remotely monitored for log water levels, boiler pressure, and steam flow; new text end 25.17 new text begin (iii) has automatic safety mechanisms built into the remote monitoring systems that new text end 25.18 new text begin send an alarm upon detection of a fault condition, and an on site alarm that will sound new text end 25.19 new text begin upon detection of a fault condition and which may be heard at a distance of 500 feet; new text end 25.20 new text begin (iv) has a water treatment program that is supervised by a third party water treatment new text end 25.21 new text begin company; and new text end 25.22 new text begin (v) is attended on site by a licensed boiler operator at least two times in a 24-hour new text end 25.23 new text begin period. If the boiler is not attended more than twice in a 24-hour period, the period new text end 25.24 new text begin between checks must not be less than eight hours. new text end 25.25 new text begin This paragraph expires August 1, 2016. new text end 25.26    Sec. 28. new text begin PLUMBING AT RESORTS; WORKGROUP. new text end 25.27 new text begin The Department of Labor and Industry, in consultation with the Department of new text end 25.28 new text begin Health, must convene a workgroup to provide recommendations to the legislature on the new text end 25.29 new text begin requirements for plumbing at resorts classified as either class 1c or class 4c property under new text end 25.30 new text begin Minnesota Statutes, section 273.13, and licensed by the Department of Health under new text end 25.31 new text begin Minnesota Statutes, section 157.16. The Department must report its recommendations to new text end 25.32 new text begin the legislature not later than January 1, 2015. new text end 25.33    Sec. 29. new text begin HIGH PRESSURE BOILER RULES AND RECOMMENDATIONS; new text end 25.34 new text begin APPROPRIATION. new text end 26.1 new text begin $100,000 in fiscal year 2015 is appropriated from the general fund to the new text end 26.2 new text begin commissioner of labor and industry to update and modernize rules related to high pressure new text end 26.3 new text begin boilers. The commissioner must make recommendations by October 1, 2015, to the new text end 26.4 new text begin committees of the house of representatives and senate with jurisdiction over construction new text end 26.5 new text begin codes and licensing on changes related to boilers that operate at levels of 15 PSI or higher. new text end 26.6 new text begin This is a onetime appropriation. new text end 26.7    Sec. 30. new text begin REVISOR'S INSTRUCTION. new text end 26.8 new text begin The revisor of statutes shall replace the phrase "Division of Voluntary new text end 26.9 new text begin Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200. new text end 26.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 26.11    Sec. 31. new text begin REVISOR'S INSTRUCTION. new text end 26.12 new text begin The revisor of statutes shall renumber the citations in column A with the citations new text end 26.13 new text begin in column B. The revisor shall correct any cross-references required because of the new text end 26.14 new text begin renumbering and may make necessary grammatical and technical changes, including new text end 26.15 new text begin changes to sentence structure, to preserve the meaning of the text. new text end 26.16 new text begin Column A new text end new text begin Column B new text end 26.17 26.18 new text begin 326B.701 new text end new text begin 326B.701, subd. 1, paragraphs (a) new text end new text begin and (b) new text end 26.19 new text begin 181.723, subd. 1, paragraph (g) new text end new text begin 326B.701, subd. 1, paragraph (c) new text end 26.20 new text begin 181.723, subd. 4a new text end new text begin 326B.701, subd. 2 new text end 26.21 new text begin 181.723, subd. 5 new text end new text begin 326B.701, subd. 3 new text end 26.22 new text begin 181.723, subd. 5a new text end new text begin 326B.701, subd. 4 new text end 26.23 new text begin 181.723, subd. 7a new text end new text begin 326B.701, subd. 5 new text end 26.24 new text begin 181.723, subd. 8a new text end new text begin 326B.701, subd. 6 new text end 26.25 new text begin 181.723, subd. 10a new text end new text begin 326B.701, subd. 7 new text end 26.26 new text begin 181.723, subd. 16 new text end new text begin 326B.701, subd. 8 new text end 26.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 26.28    Sec. 32. new text begin REPEALER. new text end 26.29 new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and new text end 26.30 new text begin 178.08, new text end new text begin are repealed. new text end 26.31 new text begin (b) new text end new text begin Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, new text end 26.32 new text begin 7, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, new text end new text begin are repealed. new text end 26.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end " 27.1Delete the title and insert: 27.2"A bill for an act 27.3relating to labor and industry; extending an independent contractor pilot 27.4program; making federal conformity changes to the apprenticeship program; 27.5modifying municipal building code enforcement; providing an exception to 27.6high pressure boiler requirements; requiring a workgroup to study plumbing at 27.7certain resorts; appropriating money for a high pressure boiler study;amending 27.8Minnesota Statutes 2012, sections 178.02; 178.03; 178.041, subdivision 2; 27.9178.07; 178.09; 178.10; 181.723, subdivisions 4, 4a, 5, 7, 8a; 326B.106, 27.10subdivision 2, by adding subdivisions; 326B.988; proposing coding for new law 27.11in Minnesota Statutes, chapters 178; 326B; repealing Minnesota Statutes 2012, 27.12sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts 27.135200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 27.1415; 5200.0340; 5200.0360; 5200.0390." 28.1 We request the adoption of this report and repassage of the bill. 28.2 Senate Conferees: 28.3 ..... ..... 28.4 Matt Schmit Dan Sparks 28.5 ..... 28.6 Gary H. Dahms 28.7 House Conferees: 28.8 ..... ..... 28.9 Tim Mahoney John Ward 28.10 ..... 28.11 Bob Gunther