1.1A bill for an act1.2relating to state government; extending an independent contractor pilot program; 1.3making federal conformity changes to the apprenticeship program; exempting 1.4certain resort owners from plumbing licenses; exempting a sawmill from a 1.5boiler requirement; modifying municipal building code enforcement for certain 1.6public buildings; modifying the Agricultural Utilization Research Institute 1.7board of directors;amending Minnesota Statutes 2012, sections 116V.01, 1.8subdivision 2; 178.02; 178.03; 178.041, subdivision 2; 178.07; 178.09; 178.10; 1.9181.723, subdivisions 4, 4a, 5, 7, 8a; 326B.106, subdivision 2, by adding 1.10subdivisions; 326B.46, subdivision 1a; 326B.988; proposing coding for new law 1.11in Minnesota Statutes, chapters 178; 326B; repealing Minnesota Statutes 2012, 1.12sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts 1.135200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 1.1415; 5200.0340; 5200.0360; 5200.0390.1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.16    Section 1. Minnesota Statutes 2012, section 116V.01, subdivision 2, is amended to read:1.17    Subd. 2. Board of directors. The board of directors of the Agricultural Utilization 1.18Research Institute is comprised of:1.19(1) the chairs of the senate and the house of representatives standing committees 1.20with jurisdiction over agriculture finance or the chair's designee;1.21(2) two representatives of statewide farm organizations one member appointed by and 1.22serving at the pleasure of the Minnesota Farm Bureau, or its successor, and one member 1.23appointed by and serving at the pleasure of the Minnesota Farmers Union, or its successor;1.24(3) two representatives of agribusiness; and1.25(4) three representatives of the commodity promotion councils.1.26    Sec. 2. [178.011] DEFINITIONS.2.1    Subdivision 1.Scope.The terms defined in this section have the meanings given 2.2and apply to this chapter.2.3    Subd. 2.Apprentice."Apprentice" means a worker who is at least 16 years of 2.4age who is employed to learn an apprenticeable trade or occupation in a registered 2.5apprenticeship program under this chapter.2.6    Subd. 3.Apprenticeship Advisory Board."Apprenticeship Advisory Board" or 2.7"board" means the Apprenticeship Advisory Board established under section 178.02 and 2.8as an advisory State Apprenticeship Council as defined in Code of Federal Regulations, 2.9title 29, section 29.2.2.10    Subd. 4.Apprenticeship program."Apprenticeship program" means a program 2.11registered under this chapter that includes standards containing all terms and conditions 2.12for the qualification, recruitment, selection, employment, and training of apprentices, 2.13as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written 2.14apprenticeship agreement.2.15    Subd. 5.Commissioner."Commissioner" means the commissioner of labor and 2.16industry or a duly designated representative of the commissioner who is an employee 2.17of the department.2.18    Subd. 6.Department."Department" means the Department of Labor and Industry 2.19established under section 175.001.2.20    Subd. 7.Division."Division" means the department's Labor Standards and 2.21Apprenticeship Division, established under sections 175.16 and 178.03, and the State 2.22Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29, 2.23section 29.2.2.24    Subd. 8.Employer."Employer" means any person or organization employing 2.25an apprentice whether or not the person or organization is a party to an apprenticeship 2.26agreement with the apprentice.2.27    Subd. 9.Journeyworker."Journeyworker" means a person who has attained a level 2.28of skill, abilities, and competencies recognized within an industry as having mastered the 2.29skills and competencies required for the trade or occupation.2.30    Subd. 10.Registered apprenticeship agreement."Registered apprenticeship 2.31agreement" or "apprenticeship agreement" means a written agreement, complying with 2.32section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is 2.33a minor, the minor's parent or guardian, which contains the terms and conditions of the 2.34employment and training of the apprentice.2.35    Subd. 11.Related instruction."Related instruction" means an organized and 2.36systematic form of instruction designed to provide the apprentice with the knowledge of 3.1the theoretical and technical subjects related to the apprentice's trade or occupation. The 3.2instruction may be given in a classroom through trade, occupational, or industrial courses 3.3or, when of equivalent value, by correspondence, electronic media, or other forms of 3.4self-study approved by the commissioner.3.5    Subd. 12.Sponsor."Sponsor" means an employer, employer association, or 3.6apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29, 3.7section 29.2, that operates an apprenticeship program and in whose name the program is 3.8or is to be registered or approved.3.9EFFECTIVE DATE.This section is effective January 1, 2015.3.10    Sec. 3. [178.012] UNIFORMITY WITH FEDERAL LAW.3.11    Subdivision 1.Apprenticeship rules.Federal regulations governing apprenticeship 3.12in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29, 3.13sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to 3.14amendment by this chapter or by rule under section 178.041.3.15    Subd. 2.State Apprenticeship Agency.The commissioner shall take all necessary 3.16steps as permitted by law to obtain and maintain the status of the division as a State 3.17Apprenticeship Agency recognized by the United States Department of Labor under Code 3.18of Federal Regulations, title 29, part 29, section 29.13.3.19EFFECTIVE DATE.This section is effective January 1, 2015.3.20    Sec. 4. Minnesota Statutes 2012, section 178.02, is amended to read:3.21178.02 APPRENTICESHIP ADVISORY BOARD.3.22    Subdivision 1. Members. The commissioner of labor and industry, hereinafter 3.23called the commissioner, shall appoint an Apprenticeship Board, hereinafter referred 3.24to as the board, composed of three representatives each from employer and employee 3.25organizations, and two representatives of the general public. The director A designee of 3.26the commissioner of education responsible for career and technical education or designee 3.27shall be an ex officio member of the board and shall serve in an advisory capacity only.3.28    Subd. 2. Terms. The board shall not expire. The terms, compensation, and removal 3.29of appointed members shall be as provided in section 
         15.059.3.30    Subd. 4. Duties. The board shall meet at the call of the commissioner and 3.31shall advise the commissioner about matters relating to this chapter. It shall propose 3.32occupational classifications for apprenticeship programs; propose minimum standards for 3.33apprenticeship programs and agreements; and advise on the establishment of such policies, 4.1procedures, and rules as the board or commissioner deems necessary in implementing 4.2the intent of this chapter.4.3EFFECTIVE DATE.This section is effective January 1, 2015.4.4    Sec. 5. Minnesota Statutes 2012, section 178.03, is amended to read:4.5178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP.4.6    Subdivision 1. Establishment of division. There is established a Division of Labor 4.7Standards and Apprenticeship in the Department of Labor and Industry. This division 4.8shall be administered by a director, and be under the supervision of the commissioner of 4.9labor and industry, hereinafter referred to as the commissioner.4.10    Subd. 2. Director of labor standards and apprenticeship. The commissioner 4.11shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter 4.12referred to as the director, and may appoint and employ such clerical, technical, and 4.13professional help as is necessary to accomplish the purposes of this chapter. The director 4.14and division staff shall be appointed and shall serve in the classified service pursuant to 4.15civil service law and rules.4.16    Subd. 3. Duties and functions.The director, under the supervision of the 4.17commissioner, and with the advice and consultation of the Apprenticeship Board, is 4.18authorized: to administer the provisions of this chapter; to promote apprenticeship and 4.19other forms of on-the-job learning; to establish, in cooperation and consultation with the 4.20Apprenticeship Board and with the apprenticeship committees, conditions, training, and 4.21learning standards for the approval of apprenticeship programs and agreements, which 4.22conditions and standards shall in no case be lower than those (1) prescribed by this chapter, 4.23and (2) established under The division shall be administered as prescribed by this chapter 4.24and in accordance with Code of Federal Regulations, title 29, part 29; to promote equal 4.25employment opportunity in apprenticeship and other on-the-job learning and to establish 4.26a Minnesota plan for equal employment opportunity in apprenticeship which shall be 4.27consistent with standards established under Code of Federal Regulations, title 29, part 30, 4.28as amended; to issue certificates of registration to sponsors of approved apprenticeship 4.29programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion 4.30that approval is for the best interest of the apprentice, any apprenticeship agreement which 4.31meets the standards established hereunder; to terminate any apprenticeship agreement in 4.32accordance with the provisions of such agreement; to keep a record of apprenticeship 4.33agreements and their disposition; to issue certificates of completion of apprenticeship; 4.34and to perform such other duties as the commissioner deems necessary to carry out the 5.1intent of this chapter; provided, that the administration and supervision of supplementary 5.2instruction in related subjects for apprentices; coordination of instruction on a concurrent 5.3basis with job experiences, and the selection and training of teachers and coordinators 5.4for such instruction shall be the function of state and local boards responsible for 5.5vocational education. The director division shall have the authority to make wage 5.6determinations applicable to the graduated schedule of wages and journeyworker wage 5.7rate for apprenticeship agreements, giving consideration to the existing wage rates 5.8prevailing throughout the state, except that no wage determination by the director shall 5.9alter an existing wage provision for apprentices or journeyworkers that is contained in a 5.10bargaining agreement in effect between an employer and an organization of employees, 5.11nor shall the director make any determination for the beginning rate for an apprentice that 5.12is below the wage minimum established by federal or state law.5.13    Subd. 4. Reciprocity approval. The director commissioner, if requested by a 5.14sponsoring entity program sponsor, shall grant reciprocity approval to apprentices, 5.15apprenticeship programs of employers and unions who jointly form a sponsoring entity 5.16on a multistate basis in other than the building construction industry if such programs 5.17are in conformity with this chapter and have been registered in compliance with Code 5.18of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized 5.19by or registered with the United States Department of Labor, Office of Apprenticeship, 5.20when such approval is necessary for federal purposes under Code of Federal Regulations, 5.21title 29, section 29.13(a) or 29.13(b)(7), and standards that are registered in other states. 5.22Program sponsors seeking reciprocal approval must meet the requirements of this chapter 5.23including the wage and hour provisions and apprentice ratio standards.5.24EFFECTIVE DATE.This section is effective January 1, 2015.5.25    Sec. 6. [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.5.26    Subdivision 1.Application.To apply for the registration of an apprenticeship 5.27program, a sponsor shall submit a completed application to the division on a form provided 5.28by the commissioner, which shall include standards of apprenticeship that comply with the 5.29requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.5.30    Subd. 2.Provisional approval.The division shall grant a provisional approval 5.31period of one year to an applicant demonstrating that the standards submitted meet the 5.32requirements of this chapter. The division may review each program granted provisional 5.33approval for quality and for conformity with the requirements of this section and section 5.34178.036 at any time, but not less than biannually, during the provisional approval period. 5.35After review:6.1(1) a program that conforms with the requirements of this chapter:6.2(i) may be approved; or6.3(ii) may continue to be provisionally approved through the first full training cycle; and6.4(2) a program not in operation or not conforming with the requirements of this 6.5chapter during the provisional approval period shall be deregistered.6.6The division shall inform the applicant of the results of its review in writing at least 30 6.7days prior to the expiration of the provisional approval period.6.8    Subd. 3.Review.The division shall review all programs for quality and for 6.9conformity with the requirements of this chapter at the end of the first full training 6.10cycle. Subsequent review of a registered program must be conducted at least annually. 6.11Programs not in operation or not conforming to this chapter at the time of review may be 6.12recommended for deregistration.6.13    Subd. 4.Program modification.To apply for modification of or change to a 6.14registered program, a sponsor shall submit a written request for modification to the 6.15division. The division shall approve or disapprove a modification request within 90 days 6.16from the date of receipt. If approved, the modification or change must be recorded and 6.17acknowledged within 90 days of its approval as an amendment to the registered program. 6.18If not approved, the division shall notify the sponsor in writing of the disapproval and the 6.19reasons for the disapproval. The division may provide technical assistance to a sponsor 6.20seeking to modify or change a registered program.6.21    Subd. 5.Notice.When an application is submitted under subdivision 1 by an 6.22employer or employers' association, and where the standards, collective bargaining 6.23agreement, or other instrument provides for participation by a union in any manner in the 6.24operation of the substantive matters of the apprenticeship program, and the participation 6.25is exercised, a written acknowledgment of the union's agreement or a written statement 6.26specifying that the union has no objection to the registration is required. Where no union 6.27participation is evidenced and practiced, the employer or employers' association shall 6.28simultaneously furnish to the union, if any, which functions as the collective bargaining 6.29agent of the employees to be trained, a copy of its application for registration and the 6.30apprenticeship program. The commissioner shall provide a reasonable time of not less 6.31than 30 days nor more than 60 days for receipt of union comments, if any, before final 6.32action on the application for registration is taken. Union comments must be submitted to 6.33the division during the time period specified by the commissioner.6.34    Subd. 6.Certificate.Upon registration of a program, the commissioner shall issue a 6.35certificate of registration to the sponsor. Within 30 days after the certificate is mailed or 7.1otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of 7.2at least one executed apprenticeship agreement.7.3    Subd. 7.Policy requirement.It must be the policy of the employer and sponsor 7.4that the recruitment, selection, employment, and training of apprentices during their 7.5apprenticeship must be without discrimination due to race, color, creed, religion, national 7.6origin, sex, sexual orientation, marital status, physical or mental disability, receipt of 7.7public assistance, or age. The employer and sponsor must take affirmative action to 7.8provide equal opportunity in apprenticeship and must operate the apprenticeship program 7.9as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota 7.10plan for equal opportunity in apprenticeship.7.11EFFECTIVE DATE.This section is effective January 1, 2015.7.12    Sec. 7. [178.036] STANDARDS OF APPRENTICESHIP.7.13    Subdivision 1.Federal uniformity.Each program must have an organized, written 7.14plan of program standards embodying the terms and conditions of employment, training, 7.15and supervision of one or more apprentices in an apprenticeable trade or occupation, as 7.16defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by 7.17a sponsor and employer who has undertaken to carry out the apprentice training program. 7.18The program standards must contain the provisions that address each item identified in 7.19Code of Federal Regulations, title 29, part 29, section 29.5(b).7.20    Subd. 2.Standards.(a) In addition to the requirements in subdivision 1, the 7.21program standards must also contain provisions in compliance with paragraphs (b) to (k):7.22(b) Related instruction. A minimum of 144 hours of related instruction is required 7.23in each training cycle. At least 50 hours of related safety instruction is required during the 7.24term of apprenticeship. Time spent in related instruction cannot be considered as hours of 7.25work as required by the job process schedule. Every apprenticeship instructor must meet 7.26the Department of Education's requirements for a vocational-technical instructor or be a 7.27subject matter expert, which is an individual such as a journeyworker who is recognized 7.28within an industry as having expertise in a specific trade or occupation.7.29(c) Job process schedule. Each time-based apprenticeship program must include 7.30not less than 2,000 hours of reasonably continuous employment.7.31(d) Ratios. If the apprentice is covered by a collective bargaining agreement, the 7.32employer must follow the provisions of the collective bargaining agreement regarding the 7.33maximum number of apprentices to be employed at the work site for each journeyworker 7.34employed at the same work site. In the absence of a collective bargaining agreement, for 8.1the purposes of direct supervision and the safety and instruction of the apprentice, the 8.2ratio shall be:8.3(1) one apprentice for the first journeyworker employed at the work site plus one 8.4apprentice for each additional three journeyworkers employed at the work site;8.5(2) the work site ratio utilized by the majority of registered apprenticeship 8.6agreements in the same trade or occupation; or8.7(3) a program-specific ratio that has been approved by the Apprenticeship Advisory 8.8Board.8.9(e) Graduated schedule of wages. The graduated schedule of wages for an 8.10apprenticeship program shall be calculated as a percentage of the journeyworker rate in 8.11the majority of registered apprenticeship agreements in the same trade or occupation in the 8.12state. If there are no registered apprenticeship agreements in the same trade or occupation, 8.13the graduated schedule of wages may be determined by the sponsor.8.14(f) Probationary period. The standards must provide a period of probation of not 8.15more than 500 hours of employment and instruction extending over not more than four 8.16months, during which time the apprenticeship agreement shall be terminated by the director 8.17upon written request of either party, and providing that after such probationary period the 8.18apprenticeship agreement may be terminated by the director by mutual agreement of all 8.19parties thereto, or terminated by the director for good and sufficient reason.8.20(g) Dispute resolution. The program standards must include a provision that 8.21controversies or differences concerning the terms of the apprenticeship agreement which 8.22cannot be resolved by the parties thereto, or which are not covered by a collective 8.23bargaining agreement, may be submitted to the commissioner for determination as 8.24provided for in section 178.09.8.25(h) Term of apprenticeship. The term of apprenticeship may be measured either 8.26through:8.27(1) the time-based approach, which requires completion of at least 2,000 work 8.28hours of on-the-job training; 8.29(2) the competency-based approach, which requires the attainment of competency; or8.30(3) the hybrid approach, which is a blend of the time-based and competency-based 8.31approaches.8.32(i) Training cycle. The training cycle for related instruction must be designated in 8.33hours, days, or months for each individual trade or occupation included in the standards.8.34(j) Responsibilities of the apprentice. An apprentice employed under the program 8.35standards shall agree to be punctual and regular in attendance, and to endeavor to the best 8.36of the apprentice's ability to perfect the required skills for the trade or occupation.9.1(k) Coordination of apprentices. The sponsor shall designate a qualified individual 9.2as a coordinator of apprentices who shall:9.3(1) maintain an adequate record of progress in training each apprentice;9.4(2) be responsible for assuring that the requirements of the applicable learning 9.5program are met during the prescribed training term; and9.6(3) perform other duties as may be assigned by the sponsor relative to the 9.7development and operation of an effective program of apprenticeship.9.8EFFECTIVE DATE.This section is effective January 1, 2015.9.9    Sec. 8. Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read:9.10    Subd. 2. Chapter 14 applies. Rules, modifications, amendments, and repeals 9.11thereof which may be issued by the commissioner under this section chapter shall be 9.12adopted in accordance with chapter 14 and shall have the force and effect of law.9.13EFFECTIVE DATE.This section is effective January 1, 2015.9.14    Sec. 9. [178.044] DETERMINATION OF APPRENTICE WAGES.9.15    Subdivision 1.Maximum hours.The maximum number of hours of work per week 9.16shall not exceed either the number prescribed by law or the customary regular number of 9.17hours per week for the employees of the company by which the apprentice is employed. 9.18Time spent in related and supplemental instruction for any apprentice shall not be included 9.19in the maximum number of hours of work per workweek.9.20    Subd. 2.Overtime.An apprentice may be allowed to work overtime provided that 9.21the overtime work does not conflict with related instruction course attendance. All time 9.22in excess of the number of hours of work per week as specified in the apprenticeship 9.23agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall 9.24be increased by the same percentage as the journeyworker's rate of pay for overtime is 9.25increased in the same industry or establishment.9.26    Subd. 3.Journeyworker wage rate.If the apprentice is not covered by a collective 9.27bargaining agreement, the journeyworker wage rate upon which the apprentice agreement 9.28graduated schedule of wages is calculated shall be:9.29(1) the most current Minnesota state prevailing wage rate determination for the 9.30same trade or occupation in the county in which the apprentice's employer is located. If 9.31an apprenticeship agreement entered into after January 1, 2015, does not specify fringe 9.32benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated 9.33must be the total rate listed in the wage determination; or10.1(2) if there is no Minnesota prevailing wage rate determination for the same trade or 10.2occupation in the county in which the apprentice's employer is located, the journeyworker 10.3wage may be determined by the sponsor with the approval of the division.10.4EFFECTIVE DATE.This section is effective January 1, 2015.10.5    Sec. 10. Minnesota Statutes 2012, section 178.07, is amended to read:10.6178.07 REGISTERED APPRENTICESHIP AGREEMENTS.10.7    Subdivision 1.Approval required.All terminations, cancellations, and transfers of 10.8apprenticeship agreements shall be approved by the division in writing. The division must 10.9be notified in writing by the sponsor within 45 days of all terminations, cancellations, 10.10or transfer of apprenticeship agreements.10.11    Subd. 2.Signatures required.Apprenticeship agreements shall be signed by 10.12the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal 10.13guardian. When a minor enters into an apprenticeship agreement under this chapter for a 10.14period of learning extending into majority, the apprenticeship agreement shall likewise be 10.15binding for such a period as may be covered during the apprentice's majority.10.16    Subd. 3.Contents. Every apprenticeship agreement entered into under this chapter 10.17shall contain:10.18(1) the names of the contracting parties, and the signatures required by subdivision 1;10.19(2) the date of birth, and information as to the race and sex of the apprentice, and, on 10.20a voluntary basis, the apprentice's Social Security number;10.21(3) a statement of the trade, craft, occupation, or business which the apprentice is to 10.22be taught, and the time at which the apprenticeship will begin and end;10.23(3) contact information of the sponsor and the division;10.24(4) a statement showing of the trade or occupation which the apprentice is to be 10.25taught, the date on which the apprenticeship will begin, and the number of hours to be 10.26spent by the apprentice in work and the number of hours to be spent in concurrent, 10.27supplementary instruction in related subjects, which instruction shall be not less than 144 10.28hours during each year of the apprenticeship term. The maximum number of hours of 10.29work per week not including time spent in related and supplemental instruction for any 10.30apprentice shall not exceed either the number prescribed by law or the customary regular 10.31number of hours per week for the employees of the company by which the apprentice is 10.32employed. An apprentice may be allowed to work overtime provided that the overtime 10.33work does not conflict with supplementary instruction course attendance. All time in 10.34excess of the number of hours of work per week as specified in the apprenticeship 11.1agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall 11.2be increased by the same percentage as the journeyworker's rate of pay for overtime is 11.3increased in the same industry or establishment related instruction;11.4(5) a statement setting forth a schedule of the processes in the trade, occupation, 11.5or industry divisions in which the apprentice is to be taught and the approximate time to 11.6be spent at each process;11.7(6) (5) a statement of the graduated scale of wages to be paid the apprentice 11.8and whether the required school time shall be compensated under sections 178.036, 11.9subdivision 2, paragraph (e), and 178.044, as applicable;11.10(7) (6) a statement providing for a period of probation of not more than 500 hours 11.11of employment and instruction extending over not more than four months, during which 11.12time the apprenticeship agreement shall be terminated by the director upon written request 11.13of either party, and providing that after such probationary period the apprenticeship 11.14agreement may be terminated by the director by mutual agreement of all parties thereto, 11.15or terminated by the director for good and sufficient reason listing any fringe benefits 11.16to be provided to the apprentice;11.17(8) a provision that controversies or differences concerning the terms of the 11.18apprenticeship agreement which cannot be resolved by the parties thereto, or which are 11.19not covered by a collective bargaining agreement, may be submitted to the director for 11.20determination as provided for in section 178.09;11.21(9) a provision that an employer who is unable to fulfill an obligation under the 11.22apprenticeship agreement may, with the approval of the director, transfer such contract to 11.23any other employer, provided that the apprentice consents and that such other employer 11.24agrees to assume the obligations of the apprenticeship agreement; and11.25(7) a statement incorporating as part of the agreement the registered standards of 11.26the apprenticeship program on the date of the agreement and as they may be amended 11.27during the period of the agreement;11.28(8) a statement that the apprentice will be accorded equal opportunity in all phases 11.29of apprenticeship employment and training, without discrimination due to race, color, 11.30creed, religion, national origin, sex, sexual orientation, marital status, physical or mental 11.31disability, receipt of public assistance, or age; and11.32(10) (9) such additional terms and conditions as may be prescribed or approved by 11.33the director commissioner not inconsistent with the provisions of this chapter.11.34EFFECTIVE DATE.This section is effective January 1, 2015.12.1    Sec. 11. Minnesota Statutes 2012, section 178.09, is amended to read:12.2178.09 INVESTIGATIONS BY DIRECTOR AND ENFORCEMENT OF 12.3APPRENTICESHIP AGREEMENTS.12.4    Subdivision 1. Complaint. Upon the complaint of any interested person or upon the 12.5director's division's own initiative, the director division may investigate to determine if 12.6there has been a violation of the terms of an apprenticeship agreement made under this 12.7chapter. Complaints must be made in writing within 60 days of the events giving rise to the 12.8complaint and must set forth the specific matters complained of together with relevant facts 12.9and circumstances. Copies of pertinent documents and correspondence must accompany 12.10the complaint. The director division may conduct such proceedings as are necessary for 12.11that investigation and determination. All such proceedings shall be on a fair and impartial 12.12basis and shall be conducted according to rules promulgated under section 178.041.12.13    Subd. 2. Determination; appeal.Within 90 days after the receipt of a complaint, 12.14the division must issue a determination. The determination of the director division shall 12.15be filed with the commissioner and written notice shall be served on all parties affected 12.16by it. Any person aggrieved by any determination or action of the director may appeal 12.17to the commissioner. If no appeal is filed with the commissioner within ten days of the 12.18date of service, the director's division's determination shall become the final order of the 12.19commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing 12.20board to be composed of three members of the Apprenticeship Advisory Board appointed 12.21under section 
         178.02, one member being a representative of an employer organization, one 12.22representative being a member of an employee organization, and one member representing 12.23the general public. The board shall hold a hearing on the appeal after due notice to the 12.24interested parties and shall submit to the commissioner findings of fact and a recommended 12.25decision accompanied by a memorandum of the reasons for it. Within 30 days after 12.26submission, the commissioner may adopt the recommended decision of the board, or 12.27disregard the recommended decision of the board and prepare a decision based on the 12.28findings of fact and accompanied by a memorandum of reasons for that decision. Written 12.29notice of the commissioner's determination and order shall be served on all parties affected 12.30by it. Any person aggrieved or affected by any the commissioner's determination or order 12.31of the commissioner may appeal from it to the district court having jurisdiction at any time 12.32within 30 days after the date of the order by service of a written notice of appeal on the 12.33commissioner. Upon service of the notice of appeal, the commissioner shall file with the 12.34court administrator of the district court to which the appeal is taken a certified copy of the 12.35order appealed from, together with findings of fact on which it is based. The person serving 12.36a notice of appeal shall, within five days after its service, file it, with proof of service, with 13.1the court administrator of the court to which the appeal is taken. The district court shall 13.2then have jurisdiction over the appeal and it shall be entered in the records of the district 13.3court and tried de novo according to the applicable rules. Any person aggrieved or affected 13.4by any determination, order, or decision of the district court may appeal as in other civil 13.5cases and order under this section is entitled to judicial review under sections 14.63 to 13.614.68 in the same manner that a person aggrieved by a final decision in a contested case is 13.7entitled to judicial review. The commissioner's determination and order under this section 13.8shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.13.9    Subd. 3.Service.Service under this chapter may be by certified first class mail, 13.10personal service, or in accordance with any consent to service filed with the commissioner. 13.11Service by mail shall be accomplished in the manner provided in Minnesota Rules, part 13.121400.5550, subpart 2. Personal service shall be accomplished in the manner provided in 13.13Minnesota Rules, part 1400.5550, subpart 3.13.14EFFECTIVE DATE.This section is effective January 1, 2015.13.15    Sec. 12. [178.091] INVESTIGATIONS AND ENFORCEMENT; 13.16APPRENTICESHIP PROGRAMS AND STANDARDS.13.17    Subdivision 1.Investigations.In order to carry out the purposes of this chapter, 13.18the commissioner may investigate registered apprenticeship programs and applicants 13.19for program registration to determine whether there are any grounds for deregistration 13.20of a registered program or for the denial of an application. Persons requested by the 13.21commissioner to provide information or produce documents shall respond within 30 days 13.22of the commissioner's service of the request.13.23    Subd. 2.Grounds.(a) The commissioner may deregister a registered apprenticeship 13.24program or deny an application for registration if:13.25(1) the program does not comply with any requirement of Code of Federal 13.26Regulations, title 29, part 29 or 32, this chapter, or any rule adopted pursuant to section 13.27178.041;13.28(2) the program does not have at least one registered apprentice in each trade or 13.29occupation, except for the following specified periods of time:13.30(i) within the first 30 days after the date a program is registered; or13.31(ii) within one year of the date that a program graduates an apprentice in a trade or 13.32occupation and the date of registration for the next apprentice in that trade or occupation; or13.33(3) the program is not conducted, operated, or administered in accordance with 13.34the program's registered standards or with the requirements of this chapter, including 13.35but not limited to:14.1(i) failure to provide on-the-job learning;14.2(ii) failure to provide related instruction;14.3(iii) failure of an employer to pay the apprentice a progressively increasing schedule 14.4of wages consistent with the apprentice's skills acquired; or14.5(iv) persistent and significant failure to perform successfully.14.6(b) The commissioner may deregister an apprenticeship program at the written 14.7request of the sponsor in a manner consistent with the provisions of Code of Federal 14.8Regulations, title 29, part 29, section 29.8(a).14.9    Subd. 3.Reinstatement.If the commissioner deregisters a registered apprenticeship 14.10program, the sponsor may request reinstatement not before one year after the effective 14.11date of the deregistration. The commissioner may, as a condition of reinstatement, require 14.12the sponsor to comply with reasonable conditions the commissioner considers necessary 14.13to effectuate the purposes of this chapter.14.14    Subd. 4.Orders; hearings related to orders.(a) If the commissioner determines 14.15that a registered apprenticeship program should be deregistered or that an application for 14.16registration should be denied, the commissioner shall issue to and serve on the sponsor an 14.17order deregistering the program's registration or denying the application for registration.14.18(b) An order issued under this subdivision must specify:14.19(1) the deficiency and the required remedy or corrective action;14.20(2) the time period to effectuate the required remedy or corrective action, which 14.21shall be no more than 90 days; and14.22(3) any other requirement consistent with Code of Federal Regulations, title 29, 14.23part 29, section 29.8(b).14.24(c) The sponsor to whom the commissioner issues an order under this subdivision 14.25may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.14.26EFFECTIVE DATE.This section is effective January 1, 2015.14.27    Sec. 13. Minnesota Statutes 2012, section 178.10, is amended to read:14.28178.10 LIMITATION.14.29(a) The provisions of this chapter shall have no application to those infants14.30 individuals who are apprenticed by the commissioner of corrections pursuant to sections 14.31242.43
          and 
         242.44.14.32(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:14.33(1) any apprenticeship provision in any collective bargaining agreement between 14.34employers and employees establishing higher apprenticeship standards; or15.1(2) any special provision for veterans, minority persons, or women, in the standards, 15.2apprentice qualifications, or operation of the program or in the apprenticeship agreement 15.3which is not otherwise prohibited by law.15.4EFFECTIVE DATE.This section is effective January 1, 2015.15.5    Sec. 14. Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read:15.6    Subd. 4. Independent contractor. (a) An individual is an independent contractor 15.7and not an employee of the person for whom the individual is performing services in the 15.8course of the person's trade, business, profession, or occupation only if the individual is 15.9registered with the Department of Labor and Industry, if required under subdivision 4a, 15.10and the individual:15.11(1) maintains a separate business with the individual's own office, equipment, 15.12materials, and other facilities;15.13(2)(i) holds or has applied for a federal employer identification number or (ii) has 15.14filed business or self-employment income tax returns with the federal Internal Revenue 15.15Service if the individual has performed services in the previous year;15.16(3) is operating under contract to perform the specific services for the person 15.17for specific amounts of money and under which the individual controls the means of 15.18performing the services;15.19(4) is incurring the main expenses related to the services that the individual is 15.20performing for the person under the contract;15.21(5) is responsible for the satisfactory completion of the services that the individual 15.22has contracted to perform for the person and is liable for a failure to complete the services;15.23(6) receives compensation from the person for the services performed under the 15.24contract on a commission or per-job or competitive bid basis and not on any other basis;15.25(7) may realize a profit or suffer a loss under the contract to perform services for 15.26the person;15.27(8) has continuing or recurring business liabilities or obligations; and15.28(9) the success or failure of the individual's business depends on the relationship of 15.29business receipts to expenditures.15.30An individual who is not registered, if required by section 326B.701, is presumed to 15.31be an employee of a person for whom the individual performs services in the course of 15.32the person's trade, business, profession, or occupation. The person for whom the services 15.33were performed may rebut this presumption by showing that the unregistered individual 15.34met all nine factors in this paragraph at the time the services were performed.16.1(b) If an individual is an owner or partial owner of a business entity, the individual is 16.2an employee of the person for whom the individual is performing services in the course 16.3of the person's trade, business, profession, or occupation, and is not an employee of the 16.4business entity in which the individual has an ownership interest, unless:16.5(1) the business entity meets the nine factors in paragraph (a);16.6(2) invoices and payments are submitted in the name of the business entity; and16.7(3) the business entity is registered with the secretary of state, if required; and.16.8(4) the business entity is registered with the Department of Labor and Industry, 16.9if required under subdivision 4a.16.10If the business entity in which the individual has an ownership interest is not 16.11registered, if required by section 326B.701, the individual is presumed to be an employee 16.12of a person for whom the individual performs services and not an employee of the business 16.13entity in which the individual has an ownership interest. The person for whom the services 16.14were performed may rebut the presumption by showing that the business entity met the 16.15requirements of clauses (1) to (3) at the time the services were performed.16.16EFFECTIVE DATE.This section is effective the day following final enactment.16.17    Sec. 15. Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read:16.18    Subd. 4a. Applicability; registration pilot project requirement. (a) The 16.19commissioner shall implement a pilot project, effective July 1, 2012, for the registration 16.20of Persons who perform public or private sector commercial or residential building 16.21construction or improvement services as described in subdivision 2 must register with the 16.22commissioner as provided in this section. The purpose of the pilot project is to evaluate 16.23whether the information obtained through registration assists registration is to assist16.24 the Department of Labor and Industry, the Department of Employment and Economic 16.25Development, and the Department of Revenue to enforce laws related to misclassification 16.26of employees. The commissioner shall issue a report to the legislature no later than 16.27January 1, 2014, on recommendations for amendments to the registration program, 16.28including reasonable registration fees to be used to aid in enforcing misclassification laws. 16.29The commissioner must not charge a fee for registration under the pilot project, but may 16.30take the enforcement action specified in subdivision 8a. The pilot project shall expire on 16.31June 30, 2014, unless extended by the legislature.16.32(b) Except as provided in paragraph (c), any person who performs construction 16.33services in the state on or after September 15, 2012, must register with the commissioner 16.34as provided in subdivision 5 section 326B.701 before performing construction services for 16.35another person. The requirements for registration under this subdivision section 326B.70117.1 are not a substitute for, and do not relieve a person from complying with, any other law 17.2requiring that the person be licensed, registered, or certified.17.3(c) The registration requirements in this subdivision section 326B.701 do not apply to:17.4(1) a person who, at the time the person is performing the construction services, 17.5holds a current license, certificate, or registration under chapter 299M or 326B;17.6(2) a person who holds a current independent contractor exemption certificate 17.7issued under this section that is in effect on September 15, 2012, except that the person 17.8must register under this section 326B.701 no later than the date the exemption certificate 17.9expires, is revoked, or is canceled;17.10(3) a person who has given a bond to the state under section 
         326B.197 or 
         326B.46;17.11(4) an employee of the person performing the construction services, if the person 17.12was in compliance with laws related to employment of the individual at the time the 17.13construction services were performed;17.14(5) an architect or professional engineer engaging in professional practice as defined 17.15in section 
         326.02, subdivisions 2 and 3;17.16(6) a school district or technical college governed under chapter 136F;17.17(7) a person providing construction services on a volunteer basis, including but not 17.18limited to Habitat for Humanity and Builders Outreach Foundation, and their individual 17.19volunteers when engaged in activities on their behalf; or17.20(8) a person exempt from licensing under section 
         326B.805, subdivision 6, clause (5).17.21EFFECTIVE DATE.This section is effective the day following final enactment.17.22    Sec. 16. Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read:17.23    Subd. 5. Registration application. (a) Persons required to register under 17.24subdivision 4a section 326B.701 must submit electronically, in the manner prescribed by 17.25the commissioner, a complete application according to paragraphs (b) to (d).17.26    (b) A complete application must include all of the following information about any 17.27individual who is registering as an individual or a sole proprietor, or who owns 25 percent 17.28or more of a business entity being registered:17.29    (1) the individual's full legal name and title at the applicant's business;17.30    (2) the individual's business address and telephone number;17.31    (3) the percentage of the applicant's business owned by the individual; and17.32    (4) the individual's Social Security number.17.33(c) A complete application must also include the following information:17.34(1) the applicant's legal name; assumed name filed with the secretary of state, if any; 17.35designated business address; physical address; telephone number; and e-mail address;18.1(2) the applicant's Minnesota tax identification number, if one is required or has 18.2been issued;18.3(3) the applicant's federal employer identification number, if one is required or 18.4has been issued;18.5(4) evidence of the active status of the applicant's business filings with the secretary 18.6of state, if one is required or has been issued;18.7(5) whether the applicant has any employees at the time the application is filed;18.8(6) the names of all other persons with an ownership interest in the business entity 18.9who are not identified in paragraph (b), and the percentage of the interest owned by each 18.10person, except that the names of shareholders with less than ten percent ownership in a 18.11publicly traded corporation need not be provided;18.12(7) information documenting compliance with workers' compensation and 18.13unemployment insurance laws;18.14(8) a certification that the person signing the application has: reviewed it; determined 18.15that the information provided is true and accurate; and determined that the person signing 18.16is authorized to sign and file the application as an agent of the applicant. The name of the 18.17person signing, entered on an electronic application, shall constitute a valid signature of 18.18the agent on behalf of the applicant; and18.19(9) a signed authorization for the Department of Labor and Industry to verify the 18.20information provided on or with the application.18.21(d) A registered person must notify the commissioner within 15 days after there is a 18.22change in any of the information on the application as approved. This notification must 18.23be provided electronically in the manner prescribed by the commissioner. However, if 18.24the business entity structure, legal form of the business entity, or business ownership has 18.25changed, the person must submit a new registration application and registration fee, if 18.26any, for the new business entity.18.27(e) The registered person must remain registered while providing construction 18.28services for another person. The provisions of sections 
         326B.091and,326B.094to, 18.29326B.095, and326B.097 apply to this section 326B.701. A person with an expired 18.30registration shall not provide construction services for another person if registration is 18.31required under this section. Registration application and expiration time frames are as 18.32follows:18.33(1) all registrations issued on or before June 30, 2015, expire on June 30, 2015;18.34(2) all registrations issued after June 30, 2015, expire on the following June 30 18.35of each odd-numbered year; and19.1(3) a person may submit a registration or renewal application starting April 1 of the 19.2year the registration expires. If a renewal application is submitted later than May 1 of 19.3the expiration year, registration may expire before the department has issued or denied 19.4the registration.19.5EFFECTIVE DATE.This section is effective the day following final enactment.19.6    Sec. 17. Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read:19.7    Subd. 7. Prohibited activities related to independent contractor status. (a) The 19.8prohibited activities in this subdivision are in addition to those prohibited in sections 19.9326B.081
          to 
         326B.085.19.10    (b) An individual shall not hold himself or herself out as an independent contractor 19.11unless the individual meets the requirements of subdivision 4.19.12    (c) A person who provides construction services in the course of the person's trade, 19.13business, occupation, or profession shall not:19.14    (1) require an individual through coercion, misrepresentation, or fraudulent means to 19.15adopt independent contractor status or form a business entity;19.16    (2) knowingly misrepresent or misclassify an individual as an independent 19.17contractor;.19.18    Subd. 7a.Prohibited activities related to registration.(a) The prohibited activities 19.19in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.19.20(b) A person who provides construction services in the course of the person's trade, 19.21business, occupation, or profession shall not:19.22    (3) (1) contract with or perform construction services for another person without first 19.23being registered if required by subdivision 4a section 326B.701;19.24(4) (2) contract with or pay another person to perform construction services if 19.25the other person is not registered if required by subdivision 4a. All payments to an 19.26unregistered person for construction services on a single project site shall be considered a 19.27single violation. It is not a violation of this clause:19.28(i) for a person to contract with or pay an unregistered person if the unregistered 19.29person was registered at the time the contract for construction services was entered into; or19.30(ii) for a homeowner or business to contract with or pay an unregistered person if 19.31the homeowner or business is not in the trade, business, profession, or occupation of 19.32performing building construction or improvement services; or19.33(5) (3) be penalized for violations of this subdivision that are committed by another 19.34person. This clause applies only to violations of this paragraph.20.1EFFECTIVE DATE.This section is effective the day following final enactment.20.2    Sec. 18. Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read:20.3    Subd. 8a. Enforcement; remedies; and penalties.(a) Notwithstanding the 20.4maximum penalty amount in section 
         326B.082, subdivisions 7 and 12, the maximum 20.5penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if 20.6the person registers within 30 days of the date of the penalty order.20.7(b) The penalty for contracting with or paying an unregistered person to perform 20.8construction services in violation of subdivision 7a, paragraph (b), clause (2), shall be as 20.9provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive 20.10the penalty for the first violation.20.11EFFECTIVE DATE.This section is effective the day following final enactment.20.12    Sec. 19. Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read:20.13    Subd. 2. Public buildings and state-licensed facilities; administration by 20.14commissioner.Unless the commissioner has entered into an agreement under subdivision 20.152a or 2b, the commissioner shall administer and enforce the State Building Code as a 20.16municipality with respect to public buildings and state-licensed facilities in the state. 20.17The commissioner shall establish appropriate permit, plan review, inspection fees, and 20.18surcharges for public buildings and state-licensed facilities.20.19    Municipalities other than the state having an agreement with the commissioner 20.20for code administration and enforcement service for public buildings and state licensed 20.21facilities shall charge their customary fees, including surcharge, to be paid directly to the 20.22jurisdiction by the applicant seeking authorization to construct a public building or a state 20.23licensed facility. The commissioner shall sign an agreement with a municipality other than 20.24the state for plan review, code administration, and code enforcement service for public 20.25buildings and state licensed facilities in the jurisdiction if the building officials of the 20.26municipality meet the requirements of section 326B.133 and wish to provide those services 20.27and if the commissioner determines that the municipality has enough adequately trained 20.28and qualified building inspectors to provide those services for the construction project.20.29    The commissioner may direct the state building official to assist a community that 20.30has been affected by a natural disaster with building evaluation and other activities related 20.31to building codes.20.32    Administration and enforcement in a municipality under this section must apply 20.33any optional provisions of the State Building Code adopted by the municipality. A 21.1municipality adopting any optional code provision shall notify the state building official 21.2within 30 days of its adoption.21.3    The commissioner shall administer and enforce the provisions of the code relating to 21.4elevators statewide, except as provided for under section 326B.184, subdivision 4.21.5    Sec. 20. Minnesota Statutes 2012, section 326B.106, is amended by adding a 21.6subdivision to read:21.7    Subd. 2a.Public buildings and state-licensed facilities; municipal agreement 21.8for all building projects.(a) The commissioner shall enter into an agreement with a 21.9municipality other than the state for plan review, inspection, code administration, and 21.10code enforcement on public buildings and state-licensed facilities in the jurisdiction if 21.11the municipality requests to provide those services and the commissioner determines 21.12that the municipality has enough adequately trained and qualified inspectors to provide 21.13those services. In determining whether a municipality has enough adequately trained and 21.14qualified inspectors to provide the service, the commissioner must consider all inspectors 21.15who are employed by the municipality, are under contract with the municipality to provide 21.16inspection services, or are obligated to provide inspection services to the municipality 21.17under any other lawful agreement.21.18(b) The criteria used to make this determination shall be provided in writing to 21.19the municipality requesting an agreement.21.20(c) If the commissioner determines that the municipality lacks enough adequately 21.21trained and qualified inspectors to provide the required services, a written explanation of 21.22the deficiencies shall be provided to the municipality.21.23(d) The municipality shall be given an opportunity to remedy any deficiencies 21.24and request reconsideration of the commissioner's determination. A request for 21.25reconsideration must be in writing and accompanied by substantiating documentation. A 21.26request for reconsideration must be received by the commissioner within 90 days of the 21.27determination explanation. The commissioner shall review the information and issue a 21.28final determination to the municipality within 30 days of the request.21.29(e) A municipality aggrieved by a final decision of the commissioner to not enter into 21.30an agreement may appeal to be heard as a contested case in accordance with chapter 14.21.31    Sec. 21. Minnesota Statutes 2012, section 326B.106, is amended by adding a 21.32subdivision to read:21.33    Subd. 2b.Public buildings and state-licensed facilities; municipal agreement 21.34for certain building projects.The commissioner shall enter into an agreement with a 22.1municipality other than the state for inspection, code administration, and code enforcement 22.2of reserved projects occurring on public buildings and state-licensed facilities in its 22.3jurisdiction if the municipality has a designated building official as required by section 22.4326B.133 and requests to provide those services.22.5For purposes of this subdivision, "reserved projects" includes the following:22.6(1) roof covering replacement that does not add roof load;22.7(2) towers requiring special inspection;22.8(3) single-level storage buildings not exceeding 5,000 square feet;22.9(4) exterior maintenance work, including replacement of siding, windows, and doors;22.10(5) HVAC unit replacement that does not add roof load or ventilation capacity;22.11(6) accessibility upgrades not involving building additions or structural alterations;22.12(7) remodeling that does not change the building's occupancy, structural system, exit 22.13access or discharge pattern, or mechanical load; and22.14(8) other projects determined to be reserved by the commissioner.22.15    Sec. 22. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.16subdivision to read:22.17    Subd. 2c.Municipal fees.Municipalities other than the state having an agreement 22.18under subdivision 2a with the commissioner for code administration and enforcement 22.19service for public buildings and state-licensed facilities or inspecting under authority of 22.20subdivision 2b shall charge their customary fees, including surcharge, to be paid directly 22.21to the jurisdiction by the applicant seeking authorization to construct a public building or 22.22a state-licensed facility.22.23    Sec. 23. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.24subdivision to read:22.25    Subd. 2d.Public buildings and state-licensed facilities; municipal obligation.22.26An agreement with the commissioner under subdivision 2a or 2b must require the 22.27municipality to attend to applicable  aspects of code administration and enforcement as 22.28described in the agreement and established by rule.22.29    Sec. 24. Minnesota Statutes 2012, section 326B.106, is amended by adding a 22.30subdivision to read:22.31    Subd. 2e.Public buildings and state-licensed facilities; applicable code.22.32Administration and enforcement in a municipality under subdivisions 2a and 2b must 22.33apply any optional provisions of the State Building Code adopted by the municipality. A 23.1municipality adopting any optional code provision shall notify the state building official 23.2within 30 days of its adoption.23.3    Sec. 25. Minnesota Statutes 2012, section 326B.106, is amended by adding a 23.4subdivision to read:23.5    Subd. 2f.Natural disasters.The commissioner may direct the state building 23.6official to assist a community that has been affected by a natural disaster with building 23.7evaluation and other activities related to building codes.23.8    Sec. 26. Minnesota Statutes 2012, section 326B.106, is amended by adding a 23.9subdivision to read:23.10    Subd. 2g.Elevators.The commissioner shall administer and enforce the provisions 23.11of the code relating to elevators statewide, except as provided for under section 326B.184, 23.12subdivision 4.23.13    Sec. 27. Minnesota Statutes 2012, section 326B.46, subdivision 1a, is amended to read:23.14    Subd. 1a. Exemptions from licensing. (a) An individual without a contractor 23.15license may do plumbing work on the individual's residence in accordance with 23.16subdivision 1, paragraph (a).23.17(b) An individual who is an employee working on the maintenance and repair of 23.18plumbing equipment, apparatus, or facilities owned or leased by the individual's employer 23.19and which is within the limits of property owned or leased, and operated or maintained by 23.20the individual's employer, shall not be required to maintain a contractor license as long 23.21as the employer has on file with the commissioner a current certificate of responsible 23.22individual. The responsible individual must be a master plumber or, in an area of the 23.23state that is not a city or town with a population of more than 5,000 according to the 23.24last federal census, a restricted master plumber. The certificate must be signed by the 23.25responsible individual and must state that the person signing the certificate is responsible 23.26for ensuring that the maintenance and repair work performed by the employer's employees 23.27complies with sections 
         326B.41 to 
         326B.49, all rules adopted under those sections and 23.28sections 
         326B.50 to 
         326B.59, and all orders issued under section 
         326B.082. The employer 23.29must pay a filing fee to file a certificate of responsible individual with the commissioner. 23.30The certificate shall expire two years from the date of filing. In order to maintain a 23.31current certificate of responsible individual, the employer must resubmit a certificate of 23.32responsible individual, with a filing fee, no later than two years from the date of the 23.33previous submittal. The filing of the certificate of responsible individual does not exempt 24.1any employee of the employer from the requirements of this chapter regarding individual 24.2licensing as a plumber or registration as an unlicensed individual.24.3(c) If a contractor employs a licensed plumber, the licensed plumber does not need a 24.4separate contractor license to perform plumbing work on behalf of the employer within 24.5the scope of the licensed plumber's license.24.6(d) A person may perform and offer to perform building sewer or water service 24.7installation without a contractor's license if the person is in compliance with the bond and 24.8insurance requirements of subdivision 2.24.9(e) Waterproofing contractors licensed under sections 
         326B.801 to 
         326B.89 may 24.10install in existing single-family dwellings a single sump pump, which receives subsurface 24.11or seepage water through a subsoil drain and discharges to grade. The Minnesota Plumbing 24.12Code applies to this paragraph, including provisions relating to proper installation, use of 24.13approved materials, and proper support of the materials.24.14(f) A person may perform plumbing work without a restricted plumbing contractor's 24.15license if the person is performing the work at a resort that is:24.16(1) classified either class 1c or class 4c property under section 273.13; and24.17(2) licensed by the Department of Health under section 157.16.24.18    Sec. 28. [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION.24.19The following definition applies to this section: "business entity" means a person 24.20other than an individual or a sole proprietor.24.21EFFECTIVE DATE.This section is effective the day following final enactment.24.22    Sec. 29. Minnesota Statutes 2012, section 326B.988, is amended to read:24.23326B.988 EXCEPTIONS.24.24    (a) The provisions of sections 
         326B.93 to 
         326B.998 shall not apply to:24.25    (1) boilers and pressure vessels in buildings occupied solely for residence purposes 24.26with accommodations for not more than five families;24.27    (2) railroad locomotives operated by railroad companies for transportation purposes;24.28    (3) air tanks installed on the right-of-way of railroads and used directly in the 24.29operation of trains;24.30    (4) boilers and pressure vessels under the direct jurisdiction of the United States;24.31    (5) unfired pressure vessels having an internal or external working pressure not 24.32exceeding 15 psig with no limit on size;25.1    (6) pressure vessels used for storage of compressed air not exceeding five cubic feet 25.2in volume and equipped with an ASME code stamped safety valve set at a maximum of 25.3100 psig;25.4    (7) pressure vessels having an inside diameter not exceeding six inches;25.5    (8) every vessel that contains water under pressure, including those containing air 25.6that serves only as a cushion, whose design pressure does not exceed 300 psig and whose 25.7design temperature does not exceed 210 degrees Fahrenheit;25.8    (9) boiler or pressure vessels located on farms used solely for agricultural or 25.9horticultural purposes; for purposes of this section, boilers used for mint oil extraction 25.10are considered used for agricultural or horticultural purposes, provided that the owner or 25.11lessee complies with the inspection requirements contained in section 
         326B.958;25.12    (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;25.13    (11) unfired pressure vessels in petroleum refineries;25.14    (12) an air tank or pressure vessel which is an integral part of a passenger motor 25.15bus, truck, or trailer;25.16    (13) hot water heating and other hot liquid boilers not exceeding a heat input of 25.17750,000 BTU per hour;25.18    (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000 25.19BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity 25.20of 120 gallons, or a pressure of 160 psig;25.21    (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;25.22    (16) pressure vessels operated full of water or other liquid not materially more 25.23hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees 25.24Fahrenheit or a pressure of 200 psig;25.25    (17) steam-powered turbines at papermaking facilities which are powered by steam 25.26generated by steam facilities at a remote location;25.27    (18) manually fired boilers for model locomotive, boat, tractor, stationary engine, 25.28or antique motor vehicles constructed or maintained only as a hobby for exhibition, 25.29educational or historical purposes and not for commercial use, if the boilers have an 25.30inside diameter of 12 inches or less, or a grate area of two square feet or less, and are 25.31equipped with an ASME stamped safety valve of adequate size, a water level indicator, 25.32and a pressure gauge;25.33(19) any pressure vessel used as an integral part of an electrical circuit breaker;25.34(20) pressure vessels used for the storage of refrigerant if they are built to ASME 25.35code specifications, registered with the national board, and equipped with an ASME 25.36code-stamped pressure-relieving device set no higher than the maximum allowable 26.1working pressure of the vessel. This does not include pressure vessels used in ammonia 26.2refrigeration systems;26.3(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide, 26.4argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME 26.5or Minnesota Department of Transportation specifications and equipped with an ASME 26.6code-stamped pressure-relieving device. The owner of the vessels shall perform annual 26.7visual inspections and planned maintenance on these vessels to ensure vessel integrity;26.8(22) pressure vessels used for the storage of compressed air for self-contained 26.9breathing apparatuses;26.10(23) hot water heating or other hot liquid boilers vented directly to the atmosphere; 26.11and26.12(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic 26.13feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or 26.14less.26.15    (b) An engineer's license is not required for hot water supply boilers.26.16    (c) An engineer's license and annual inspection by the department is not required 26.17for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not 26.18exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.26.19    (d) Electric boilers not exceeding a maximum working pressure of 50 psig, 26.20maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure 26.21vessels and shall not require an engineer license to operate.26.22(e) Sawmills, located in a county with a population of less than 8,000 according to 26.23the last federal census and that utilize steam for the drying of lumber, are not required to 26.24meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part 26.255225.1180, only if all of the following conditions are met:26.26(1) the owner complies with the inspection requirements under section 326B.958, 26.27and the licensing requirements under section 326B.972; and 26.28(2) the boiler:26.29(i) is equipped with electronic control systems that are remotely operated but which 26.30require on site manual reset of system faults;26.31(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;26.32(iii) has automatic safety mechanisms built into the remote monitoring systems that 26.33send an alarm upon detection of a fault condition, and an on site alarm that will sound 26.34upon detection of a fault condition and which may be heard at a distance of 500 feet;26.35(iv) has a water treatment program that is supervised by a third party water treatment 26.36company; and27.1(v) is attended on site by a licensed boiler operator at least two times in a 24-hour 27.2period. If the boiler is not attended more than twice in a 24-hour period, the period 27.3between checks must not be less than eight hours.27.4This paragraph expires August 1, 2016.27.5EFFECTIVE DATE.This section is effective the day following final enactment.27.6    Sec. 30. RULES AND RECOMMENDATIONS.27.7The commissioner of labor and industry, using money from the construction code 27.8fund under Minnesota Statutes, section 326B.04, must update and modernize rules related 27.9to high pressure boilers. The commissioner must make recommendations by October 27.101, 2015, to the committees of the house of representatives and senate with jurisdiction 27.11over construction codes and licensing on changes related to boilers that operate at levels 27.12of 15 PSI or higher.27.13EFFECTIVE DATE.This section is effective the day following final enactment.27.14    Sec. 31. REVISOR'S INSTRUCTION.27.15The revisor of statutes shall replace the phrase "Division of Voluntary 27.16Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.27.17EFFECTIVE DATE.This section is effective January 1, 2015.27.18    Sec. 32. REVISOR'S INSTRUCTION.27.19The revisor of statutes shall renumber the citations in column A with the citations 27.20in column B. The revisor shall correct any cross-references required because of the 27.21renumbering and may make necessary grammatical and technical changes, including 27.22changes to sentence structure, to preserve the meaning of the text.

27.23Column AColumn B27.2427.25326B.701326B.701, subd. 1, paragraphs (a) and (b)27.26181.723, subd. 1, paragraph (g)326B.701, subd. 1, paragraph (c)27.27181.723, subd. 4a326B.701, subd. 227.28181.723, subd. 5326B.701, subd. 327.29181.723, subd. 5a326B.701, subd. 427.30181.723, subd. 7a326B.701, subd. 527.31181.723, subd. 8a326B.701, subd. 627.32181.723, subd. 10a326B.701, subd. 727.33181.723, subd. 16326B.701, subd. 8

28.1EFFECTIVE DATE.This section is effective the day following final enactment.28.2    Sec. 33.  REPEALER.28.3(a) Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and 28.4178.08, are repealed.28.5(b) Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 28.67, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, are repealed.28.7EFFECTIVE DATE.This section is effective January 1, 2015.