HF 3048

2nd Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:29pm

1.1A bill for an act

1.2relating to labor and industry; modifying construction codes and licensing
1.3provisions; modifying certain notice provisions;amending Minnesota Statutes
1.42008, sections 178.01; 178.03, subdivisions 3, 4; 178.06; 178.08; 178.11; 326.02,
1.5subdivision 5; 326B.04, subdivision 2; 326B.127, subdivision 3; 326B.13,
1.6subdivisions 3, 4, 5, 6; 326B.133, subdivision 5; 326B.139; 326B.142; 326B.148,
1.7subdivisions 2, 3; 326B.191; 326B.31, subdivision 28; 326B.33, subdivision
1.817; 326B.42, subdivisions 2, 6; 326B.435, subdivision 2; 326B.47; 326B.84;
1.9326B.89, subdivisions 1, 5, 6, 7, 8, 10, 13, by adding subdivisions; 326B.921,
1.10subdivision 3; Minnesota Statutes 2009 Supplement, sections 14.14, subdivision
1.111a; 326B.145; Laws 2010, chapter 183, section 8; repealing Minnesota Statutes
1.122008, sections 299G.11; 299G.13, subdivisions 1, 6, 9, 16, 17, 18, 19, 20, 21,
1.1322, 23, 24, 25, 26, 27, 28; 299G.14; 299G.15; 299G.16; 299G.17; 299G.18;
1.14326B.115; 326B.37, subdivision 13; Minnesota Rules, parts 5200.0020;
1.155200.0050; 5200.0080, subparts 2, 3, 4, 4a, 4b, 6, 7, 8.
1.16BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17    Section 1. Minnesota Statutes 2009 Supplement, section 14.14, subdivision 1a, is
1.18amended to read:
1.19    Subd. 1a. Notice of rule hearing. (a) Each agency shall maintain a list of all
1.20persons who have registered their name and United States mail or electronic mail address
1.21with the agency for the purpose of receiving notice of rule proceedings. Persons may
1.22register to receive notice of rule proceedings by submitting to the agency:
1.23(1) their electronic mail address; or
1.24(2) their name and United States mail address.
1.25The agency may inquire as to whether those persons on the list wish to maintain their
1.26names remain on it and may remove names persons for which whom there is a negative
1.27reply or no reply within 60 days. The agency shall, at least 30 days before the date set for
1.28the hearing, give notice of its intention to adopt rules by United States mail or electronic
2.1mail to all persons on its list, and by publication in the State Register. The mailed notice
2.2must include either a copy of the proposed rule or an easily readable and understandable
2.3description of its nature and effect and an announcement that a free copy of the proposed
2.4rule is available on request from the agency. In addition, each agency shall make
2.5reasonable efforts to notify persons or classes of persons who may be significantly affected
2.6by the rule being proposed by giving notice of its intention in newsletters, newspapers,
2.7or other publications, or through other means of communication. The notice in the State
2.8Register must include the proposed rule or an amended rule in the form required by the
2.9revisor under section 14.07, together with an easily readable and understandable summary
2.10of the overall nature and effect of the proposed rule, a citation to the most specific
2.11statutory authority for the proposed rule, a statement of the place, date, and time of the
2.12public hearing, a statement that persons may register with the agency for the purpose of
2.13receiving notice of rule proceedings and notice that the agency intends to adopt a rule and
2.14other information required by law or rule. When an entire rule is proposed to be repealed,
2.15the agency need only publish that fact, along with an easily readable and understandable
2.16summary of the overall nature of the rules proposed for repeal, and a citation to the rule
2.17to be repealed.
2.18(b) The chief administrative law judge may authorize an agency to omit from the
2.19notice of rule hearing the text of any proposed rule, the publication of which would be
2.20unduly cumbersome, expensive, or otherwise inexpedient if:
2.21(1) knowledge of the rule is likely to be important to only a small class of persons;
2.22(2) the notice of rule hearing states that a free copy of the entire rule is available
2.23upon request to the agency; and
2.24(3) the notice of rule hearing states in detail the specific subject matter of the omitted
2.25rule, cites the statutory authority for the proposed rule, and details the proposed rule's
2.26purpose and motivation.

2.27    Sec. 2. Minnesota Statutes 2008, section 178.01, is amended to read:
2.28178.01 PURPOSES.
2.29    The purposes of this chapter are: to open to young people regardless of race, sex,
2.30creed, color or national origin, the opportunity to obtain training and on-the-job learning
2.31that will equip them for profitable employment and citizenship; to establish as a means to
2.32this end, a program of voluntary apprenticeship under approved apprentice agreements
2.33providing facilities for their training and guidance in the arts, skills, and crafts of industry
2.34and trade, with concurrent, supplementary instruction in related subjects; to promote
2.35employment apprenticeship opportunities under conditions providing adequate training
3.1and on-the-job learning and reasonable earnings; to relate the supply of skilled workers
3.2to employment demands; to establish standards for apprentice training; to establish an
3.3Apprenticeship Board and apprenticeship committees to assist in effectuating the purposes
3.4of this chapter; to provide for a Division of Labor Standards and Apprenticeship within
3.5the Department of Labor and Industry; to provide for reports to the legislature regarding
3.6the status of apprentice training in the state; to establish a procedure for the determination
3.7of apprentice agreement controversies; and to accomplish related ends.

3.8    Sec. 3. Minnesota Statutes 2008, section 178.03, subdivision 3, is amended to read:
3.9    Subd. 3. Duties and functions. The director, under the supervision of the
3.10commissioner, and with the advice and consultation of the Apprenticeship Board, is
3.11authorized: to administer the provisions of this chapter; to promote apprenticeship and
3.12other forms of on-the-job training learning; to establish, in cooperation and consultation
3.13with the Apprenticeship Board and with the apprenticeship committees, conditions
3.14and, training, and learning standards for the approval of apprenticeship programs and
3.15agreements, which conditions and standards shall in no case be lower than those (1)
3.16prescribed by this chapter, and (2) established under Code of Federal Regulations, title 29,
3.17part 29; to promote equal employment opportunity in apprenticeship and other on-the-job
3.18training learning and to establish a Minnesota plan for equal employment opportunity in
3.19apprenticeship which shall be consistent with standards established under Code of Federal
3.20Regulations, title 29, part 30, as amended; to issue certificates of registration to sponsors
3.21of approved apprenticeship programs; to act as secretary of the Apprenticeship Board;
3.22to approve, if of the opinion that approval is for the best interest of the apprentice, any
3.23apprenticeship agreement which meets the standards established hereunder; to terminate
3.24any apprenticeship agreement in accordance with the provisions of such agreement; to
3.25keep a record of apprenticeship agreements and their disposition; to issue certificates of
3.26completion of apprenticeship; and to perform such other duties as the commissioner deems
3.27necessary to carry out the intent of this chapter; provided, that the administration and
3.28supervision of supplementary instruction in related subjects for apprentices; coordination
3.29of instruction on a concurrent basis with job experiences, and the selection and training
3.30of teachers and coordinators for such instruction shall be the function of state and local
3.31boards responsible for vocational education. The director shall have the authority to make
3.32wage determinations applicable to the graduated schedule of wages and journeyman
3.33wage rate for apprenticeship agreements, giving consideration to the existing wage rates
3.34prevailing throughout the state, except that no wage determination by the director shall
3.35alter an existing wage provision for apprentices or journeymen that is contained in a
4.1bargaining agreement in effect between an employer and an organization of employees,
4.2nor shall the director make any determination for the beginning rate for an apprentice that
4.3is below the wage minimum established by federal or state law.

4.4    Sec. 4. Minnesota Statutes 2008, section 178.03, subdivision 4, is amended to read:
4.5    Subd. 4. Reciprocity approval. The director, if requested by a sponsoring entity,
4.6shall grant reciprocity approval to apprenticeship programs of employers and unions
4.7who jointly form a sponsoring entity on a multistate basis in other than the building
4.8construction industry if such programs are in conformity with this chapter and have been
4.9registered in compliance with Code of Federal Regulations, title 29, part 29, by a state
4.10apprenticeship council recognized by or registered with the Bureau of Apprenticeship and
4.11Training, United States Department of Labor, when such approval is necessary for federal
4.12purposes under Code of Federal Regulations, title 29, section 29.12(a) 29.13(a).

4.13    Sec. 5. Minnesota Statutes 2008, section 178.06, is amended to read:
4.14178.06 APPRENTICE.
4.15The term "apprentice," as used herein, means a person at least 16 years of age who
4.16has entered into a written agreement, hereinafter called an apprentice agreement, with a
4.17committee, an employer, an association of employers, or an organization of employees,
4.18which apprentice agreement provides for:
4.19(1) a time-based approach involving not less than 2,000 hours or one year of
4.20reasonably continuous employment for such person and for participation in an approved
4.21program of training on-the-job learning through employment and through concurrent,
4.22supplementary education in related subjects.;
4.23(2) a competency-based approach involving successful demonstration of acquired
4.24skills and knowledge by an apprentice plus on-the-job learning; or
4.25(3) a hybrid approach involving the completion of a specified minimum number of
4.26hours plus the successful demonstration of competency.
4.27    Whenever a minimum age exceeding 16 years is prescribed by federal or state law
4.28to apply to workers in certain hazardous occupations, the minimum age so prescribed
4.29shall be applicable to apprentices.

4.30    Sec. 6. Minnesota Statutes 2008, section 178.08, is amended to read:
4.31178.08 DIRECTOR TO APPROVE APPRENTICE AGREEMENTS.
4.32Every apprentice agreement is subject to approval by the director and shall be signed
4.33by the committee, the employer, an association of employers, or an organization of
5.1employees, and by the apprentice, and if the apprentice is a minor, by a parent or legal
5.2guardian. When a minor enters into an apprentice agreement under this chapter for a
5.3period of training learning extending into majority the apprentice agreement shall likewise
5.4be binding for such a period as may be covered during the apprentice's majority.

5.5    Sec. 7. Minnesota Statutes 2008, section 178.11, is amended to read:
5.6178.11 LABOR EDUCATION ADVANCEMENT GRANT PROGRAM.
5.7The commissioner shall establish the labor education advancement grant program
5.8for the purpose of facilitating the participation of minorities and women in apprenticeable
5.9trades and occupations. The commissioner shall award grants to community-based
5.10organizations serving the targeted populations on a competitive request-for-proposal
5.11basis. Interested organizations shall apply for the grants in a form prescribed by the
5.12commissioner. As part of the application process, applicants must provide a statement
5.13of need for the grant, a description of the targeted population and apprenticeship
5.14opportunities, a description of activities to be funded by the grant, evidence supporting
5.15the ability to deliver services, information related to coordinating grant activities with
5.16other employment and training learning programs, identification of matching funds, a
5.17budget, and performance objectives. Each submitted application shall be evaluated for
5.18completeness and effectiveness of the proposed grant activity.

5.19    Sec. 8. Minnesota Statutes 2008, section 326.02, subdivision 5, is amended to read:
5.20    Subd. 5. Limitation. The provisions of sections 326.02 to 326.15 shall not apply
5.21to the preparation of plans and specifications for the erection, enlargement, or alteration
5.22of any building or other structure by any person, for that person's exclusive occupancy
5.23or use, unless such occupancy or use involves the public health or safety or the health
5.24or safety of the employees of said person, or of the buildings listed in section 326.03,
5.25subdivision 2 , nor to any detailed or shop plans required to be furnished by a contractor
5.26to a registered engineer, landscape architect, architect, or certified interior designer,
5.27nor to any standardized manufactured product, nor to any construction superintendent
5.28supervising the execution of work designed by an architect, landscape architect, engineer,
5.29or certified interior designer licensed or certified in accordance with section 326.03, nor
5.30to the planning for and supervision of the construction and installation of work by an
5.31electrical contractor or master plumber as defined in and licensed pursuant to this chapter
5.32326B, where such work is within the scope of such licensed activity and not within the
5.33practice of professional engineering, or architecture, or where the person does not claim to
5.34be a certified interior designer as defined in subdivision 2, 3, or 4b.

6.1    Sec. 9. Minnesota Statutes 2008, section 326B.04, subdivision 2, is amended to read:
6.2    Subd. 2. Deposits. All remaining balances as of June 30, 2007, in the state
6.3government special revenue fund and special revenue fund accounts maintained for
6.4the Building Codes and Standards Division, Board of Electricity, and plumbing and
6.5engineering unit are transferred to the construction code fund. Unless otherwise
6.6specifically designated by law: (1) all money collected under sections 144.122, paragraph
6.7(f); 181.723; 326B.101 to 326B.194; 326B.197; 326B.32 to 326B.399; 326B.43 to
6.8326B.49 ; 326B.52 to 326B.59; 326B.802 to 326B.885; 326B.90 to 326B.998; 327.31 to
6.9327.36 ; and 327B.01 to 327B.12, except penalties, is credited to the construction code
6.10fund; (2) all fees collected under section 45.23 in connection with continuing education
6.11for residential contractors, residential remodelers, and residential roofers are credited to
6.12the construction code fund; and (3) all penalties assessed under the sections set forth
6.13in clauses (1) and (2) and all penalties assessed under sections 144.99 to 144.993 in
6.14connection with any violation of sections 326B.43 to 326B.49 or 326B.52 to 326B.59 or
6.15the rules adopted under those sections are credited to the assigned risk safety account
6.16established by section 79.253.

6.17    Sec. 10. Minnesota Statutes 2008, section 326B.127, subdivision 3, is amended to read:
6.18    Subd. 3. Powers and duties. The state building official may, with the approval of
6.19the commissioner, employ personnel necessary to carry out the inspector's function under
6.20sections 326B.101 to 326B.194. The state building official shall distribute without charge
6.21a printed or electronic version of the code to each municipality within the state. A printed
6.22or electronic version of the code shall be made available to municipalities and interested
6.23parties for a fee prescribed by the commissioner. The state building official shall perform
6.24other duties in administering the code assigned by the commissioner.

6.25    Sec. 11. Minnesota Statutes 2008, section 326B.13, subdivision 3, is amended to read:
6.26    Subd. 3. Filing. The commissioner shall file one copy of the complete code with the
6.27secretary of state, except that All standards referred to in any model or statewide specialty
6.28code or any of the modifications of a code need not be filed with the secretary of state. All
6.29standards referred to in that are incorporated by reference into the code must be kept on
6.30file and available for inspection in the office of the commissioner.

6.31    Sec. 12. Minnesota Statutes 2008, section 326B.13, subdivision 4, is amended to read:
6.32    Subd. 4. Hearings Consultation with commissioner required. The commissioner
6.33shall hold all state hearings and make all determinations regarding any subject matter dealt
7.1with in the code including those in which another state agency proposes to adopt or amend
7.2rules which are incorporated by reference into the code or whenever the commissioner
7.3proposes to incorporate those rules into the State Building Code. In no event may a state
7.4agency subsequently authorized to adopt rules involving State Building Code subject
7.5matter proceed to adopt the rules without prior consultation with the commissioner.

7.6    Sec. 13. Minnesota Statutes 2008, section 326B.13, subdivision 5, is amended to read:
7.7    Subd. 5. Proposed amendments; hearings. Any interested person may propose
7.8amendments to the code which may be either applicable to all municipalities or, where it
7.9is alleged and established that geological conditions exist within a municipality which
7.10are not generally found within other municipalities, amendments may be restricted in
7.11application to that municipality. Notice of public hearings on proposed amendments shall
7.12be given to the governing bodies of all municipalities in addition to those persons entitled
7.13to notice under the Administrative Procedure Act.

7.14    Sec. 14. Minnesota Statutes 2008, section 326B.13, subdivision 6, is amended to read:
7.15    Subd. 6. Adoption. The commissioner shall approve any proposed amendments
7.16deemed by the commissioner to be reasonable in conformity with the policy and purpose
7.17of the code and justified under the particular circumstances involved. Upon adoption,
7.18a copy of each amendment must be distributed to the governing bodies of all affected
7.19municipalities. The commissioner shall make an electronic version of amendments to the
7.20code available to municipalities. Upon request, a municipality may receive a paper copy
7.21of amendments to the code available for a fee prescribed by the commissioner.

7.22    Sec. 15. Minnesota Statutes 2008, section 326B.133, subdivision 5, is amended to read:
7.23    Subd. 5. Grounds. In addition to the grounds set forth in section 326B.082,
7.24subdivision 11 , The commissioner may deny, suspend, limit, place conditions on, or
7.25revoke a certificate, or may censure use any enforcement provision in section 326B.082
7.26against an applicant or individual holding a certificate, if the applicant or individual:
7.27    (1) violates a provision of sections 326B.101 to 326B.194 or a rule adopted under
7.28those sections; or
7.29    (2) engages in fraud, deceit, or misrepresentation while performing the duties of a
7.30certified building official.
7.31     Nothing in this subdivision limits or otherwise affects the authority of a municipality
7.32to dismiss or suspend a building official at its discretion, except as otherwise provided
7.33for by law.

8.1    Sec. 16. Minnesota Statutes 2008, section 326B.139, is amended to read:
8.2326B.139 APPEALS.
8.3A person aggrieved by the final decision of any municipality local or state
8.4level board of appeals as to the application of the code, including any rules adopted
8.5under sections 471.465 to 471.469, may, within 180 days of the decision, appeal to
8.6the commissioner. Appellant shall submit a nonrefundable fee of $70, payable to the
8.7commissioner, with the request for appeal. An appeal must be heard as a contested case
8.8under chapter 14. The commissioner shall submit written findings to the parties. The party
8.9not prevailing shall pay the costs of the contested case hearing, including fees charged by
8.10the Office of Administrative Hearings and the expense of transcript preparation. Costs
8.11under this section do not include attorney fees. Any person aggrieved by a ruling of
8.12the commissioner may appeal in accordance with chapter 14. For the purpose of this
8.13section "any person aggrieved" includes the Council on Disability. No fee or costs shall be
8.14required when the council on disability is the appellant.

8.15    Sec. 17. Minnesota Statutes 2008, section 326B.142, is amended to read:
8.16326B.142 CERTAIN PERMITS CERTIFICATES.
8.17Building permits or certificates of occupancy validly issued before July 1, 1972,
8.18regarding buildings or structures being constructed or altered according to the permits or
8.19certificates, are valid after that date. The construction may be completed according to the
8.20building permit, unless the building official determines that life or property is in jeopardy.

8.21    Sec. 18. Minnesota Statutes 2009 Supplement, section 326B.145, is amended to read:
8.22326B.145 ANNUAL REPORT.
8.23 Each municipality shall annually report by June 30 to the department, in a format
8.24prescribed by the department, all construction and development-related fees collected by
8.25the municipality from developers, builders, and subcontractors if the cumulative fees
8.26collected exceeded $5,000 in the reporting year, except that, for reports due June 30, 2009,
8.27to June 30, 2013, the reporting threshold is $10,000. The report must include:
8.28(1) the number and valuation of units for which fees were paid;
8.29(2) the amount of building permit fees, plan review fees, administrative fees,
8.30engineering fees, infrastructure fees, and other construction and development-related
8.31fees; and
8.32(3) the expenses associated with the municipal activities for which fees were
8.33collected.
9.1A municipality that fails to report to the department in accordance with this section
9.2is subject to the remedies provided by section 326B.082.

9.3    Sec. 19. Minnesota Statutes 2008, section 326B.148, subdivision 2, is amended to read:
9.4    Subd. 2. Collection and reports. All permit surcharges must be collected by each
9.5municipality and a portion of them remitted to the state. Each municipality having a
9.6population greater than 20,000 people shall prepare and submit to the commissioner once
9.7a month a report of fees and surcharges on fees collected during the previous month but
9.8shall retain the greater of two percent or that amount collected up to $25 to apply against
9.9the administrative expenses the municipality incurs in collecting the surcharges. All other
9.10municipalities shall submit the report and surcharges on fees once a quarter but shall
9.11retain the greater of four percent or that amount collected up to $25 to apply against the
9.12administrative expenses the municipalities incur in collecting the surcharges. The report,
9.13which must be in a form prescribed by the commissioner, must be submitted together with
9.14a remittance covering the surcharges collected by the 15th day following the month or
9.15quarter in which the surcharges are collected.
9.16A municipality that fails to report or submit the required remittance to the
9.17department in accordance with this subdivision is subject to the remedies provided by
9.18section 326B.082.

9.19    Sec. 20. Minnesota Statutes 2008, section 326B.148, subdivision 3, is amended to read:
9.20    Subd. 3. Revenue to equal costs. Revenue received from the surcharge imposed
9.21in subdivision 1 should approximately equal the cost, including the overhead cost,
9.22of administering sections 326B.101 to 326B.194. By November 30 each year, the
9.23commissioner must report to the commissioner of management and budget and to the
9.24legislature on changes in the surcharge imposed in subdivision 1 needed to comply
9.25with this policy. In making this report, the commissioner must assume that the services
9.26associated with administering sections 326B.101 to 326B.194 will continue to be provided
9.27at the same level provided during the fiscal year in which the report is made.

9.28    Sec. 21. Minnesota Statutes 2008, section 326B.191, is amended to read:
9.29326B.191 CONFLICT OF LAWS.
9.30Nothing in sections 326B.163 to 326B.191 supersedes the Minnesota Electrical
9.31Act in this chapter 326.

9.32    Sec. 22. Minnesota Statutes 2008, section 326B.31, subdivision 28, is amended to read:
10.1    Subd. 28. Responsible licensed individual. A contractor's "responsible licensed
10.2individual" means the licensed Class A master electrician, Class B master electrician,
10.3master elevator constructor, or power limited technician designated in writing by the
10.4contractor in the contractor's license application, or in another manner acceptable to the
10.5commissioner, as the individual responsible for the contractor's compliance with sections
10.6326B.31 to 326B.399 and, all rules and orders adopted or issued under these sections, and
10.7all orders issued under section 326B.082. The terms "licensed responsible individual" and
10.8"licensed responsible master electrician or power limited technician" are synonymous.

10.9    Sec. 23. Minnesota Statutes 2008, section 326B.33, subdivision 17, is amended to read:
10.10    Subd. 17. Employment of master electrician or power limited technician.
10.11    (a) Each contractor must designate a responsible master electrician or power limited
10.12technician, who shall be responsible for the performance of all electrical work in
10.13accordance with the requirements of sections 326B.31 to 326B.399 or any rule or order,
10.14all rules adopted or issued under these sections, and all orders issued under section
10.15326B.082. The classes of work that a licensed contractor is authorized to perform shall
10.16be limited to the classes of work that the responsible master electrician or power limited
10.17electrician is licensed to perform.
10.18    (b) When a contractor's license is held by an individual, sole proprietorship,
10.19partnership, limited liability company, or corporation and the individual, proprietor, one
10.20of the partners, one of the members, or an officer of the corporation, respectively, is not
10.21the responsible master electrician or power limited technician, all requests for inspection
10.22shall be signed by the responsible master electrician or power limited technician. If the
10.23contractor is an individual or a sole proprietorship, the responsible licensed individual
10.24must be the individual, proprietor, or managing employee. If the contractor is a
10.25partnership, the responsible licensed individual must be a general partner or managing
10.26employee. If the licensed contractor is a limited liability company, the responsible
10.27licensed individual must be a chief manager or managing employee. If the contractor
10.28is a corporation, the responsible licensed individual must be an officer or managing
10.29employee. If the responsible licensed individual is a managing employee, the responsible
10.30licensed individual must be actively engaged in performing electrical work on behalf of
10.31the contractor, and cannot be employed in any capacity as an electrician or technician by
10.32any other contractor or employer designated in subdivision 21. An individual may be the
10.33responsible licensed individual for only one contractor or employer.
10.34    (c) All applications and renewals for contractor licenses shall include a verified
10.35statement that the applicant or licensee has complied with this subdivision.

11.1    Sec. 24. Minnesota Statutes 2008, section 326B.42, subdivision 2, is amended to read:
11.2    Subd. 2. Direct supervision. The term "direct supervision," with respect to direct
11.3supervision of a plumber's apprentice or registered unlicensed individual by a master,
11.4restricted master, journeyman, or restricted journeyman plumber, means that:
11.5    (1) at all times while the plumber's apprentice or registered unlicensed individual is
11.6performing plumbing work, the supervising plumber is present at the location where the
11.7plumber's apprentice or registered unlicensed individual is working;
11.8    (2) the supervising plumber is physically present and immediately available to the
11.9plumber's apprentice or registered unlicensed individual at all times for assistance and
11.10direction;
11.11    (3) any form of electronic supervision does not meet the requirement of physically
11.12present;
11.13    (4) the supervising plumber actually reviews the plumbing work performed by
11.14the plumber's apprentice or registered unlicensed individual before the plumbing is
11.15operated; and
11.16    (5) the supervising plumber is able to and does determine that all plumbing work
11.17performed by the plumber's apprentice or registered unlicensed individual is performed in
11.18compliance with the plumbing code.

11.19    Sec. 25. Minnesota Statutes 2008, section 326B.42, subdivision 6, is amended to read:
11.20    Subd. 6. Plumber's apprentice. A "plumber's apprentice" is any individual, other
11.21than a master, restricted master, journeyman, or restricted journeyman plumber who, as
11.22a principal occupation, is engaged in working as an employee of a plumbing contractor
11.23under the direct supervision of a master, restricted master, journeyman, or restricted
11.24journeyman plumber and is learning and assisting in the installation of plumbing who is
11.25employed in the practical installation of plumbing under an apprenticeship agreement
11.26approved by the department under Minnesota Rules, part 5200.0340.

11.27    Sec. 26. Minnesota Statutes 2008, section 326B.435, subdivision 2, is amended to read:
11.28    Subd. 2. Powers; duties; administrative support. (a) The board shall have the
11.29power to:
11.30    (1) elect its chair, vice-chair, and secretary;
11.31    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
11.32and containing such other provisions as may be useful and necessary for the efficient
11.33conduct of the business of the board;
12.1    (3) adopt the plumbing code that must be followed in this state and any plumbing
12.2code amendments thereto. The board shall adopt the plumbing code and any amendments
12.3thereto pursuant to chapter 14 and as provided in subdivision 6, paragraphs (b), (c), and (d);
12.4    (4) review requests for final interpretations and issue final interpretations as provided
12.5in section 326B.127, subdivision 5;
12.6    (5) except for rules regulating continuing education, adopt rules that regulate the
12.7licensure or registration of plumbing contractors, journeymen, apprentices unlicensed
12.8individuals, master plumbers, restricted master plumbers, and restricted journeymen and
12.9other persons engaged in the design, installation, and alteration of plumbing systems,
12.10except for those individuals licensed under section 326.02, subdivisions 2 and 3. The
12.11board shall adopt these rules pursuant to chapter 14 and as provided in subdivision
12.126, paragraphs (e) and (f);
12.13    (6) advise the commissioner regarding educational requirements for plumbing
12.14inspectors;
12.15    (7) refer complaints or other communications to the commissioner, whether oral or
12.16written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
12.17order that the commissioner has the authority to enforce pertaining to code compliance,
12.18licensure, or an offering to perform or performance of unlicensed plumbing services;
12.19    (8) approve per diem and expenses deemed necessary for its members as provided in
12.20subdivision 3;
12.21    (9) approve license reciprocity agreements;
12.22    (10) select from its members individuals to serve on any other state advisory council,
12.23board, or committee; and
12.24    (11) recommend the fees for licenses and certifications.
12.25Except for the powers granted to the Plumbing Board, the Board of Electricity, and the
12.26Board of High Pressure Piping Systems, the commissioner of labor and industry shall
12.27administer and enforce the provisions of this chapter and any rules promulgated pursuant
12.28thereto.
12.29    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
12.30    (c) The commissioner shall coordinate the board's rulemaking and recommendations
12.31with the recommendations and rulemaking conducted by the other boards created pursuant
12.32to this chapter. The commissioner shall provide staff support to the board. The support
12.33includes professional, legal, technical, and clerical staff necessary to perform rulemaking
12.34and other duties assigned to the board. The commissioner of labor and industry shall
12.35supply necessary office space and supplies to assist the board in its duties.

13.1    Sec. 27. Minnesota Statutes 2008, section 326B.47, is amended to read:
13.2326B.47 PLUMBER'S APPRENTICES UNLICENSED INDIVIDUALS.
13.3    Subdivision 1. Registration. All unlicensed individuals, other than plumber's
13.4apprentices, must be registered under subdivision 3. To be a registered plumber's
13.5apprentice, an individual must either:
13.6    (1) be an individual employed in the trade of plumbing under an apprenticeship
13.7agreement approved by the department under Minnesota Rules, part 5200.0300; or
13.8    (2) be an unlicensed individual registered with the commissioner under subdivision
13.93. A plumber's apprentice or registered unlicensed individual is authorized to assist
13.10in the installation of plumbing only while under the direct supervision of a master,
13.11restricted master, journeyman, or restricted journeyman plumber. The master, restricted
13.12master, journeyman, or restricted journeyman plumber is responsible for ensuring that all
13.13plumbing work performed by the plumber's apprentice or registered unlicensed individual
13.14complies with the plumbing code.
13.15    Subd. 2. Journeyman exam. A plumber's apprentice or registered unlicensed
13.16individual who has completed four years of practical plumbing experience is eligible to
13.17take the journeyman plumbing examination. Up to 24 months of practical plumbing
13.18experience prior to becoming a plumber's apprentice or registered unlicensed individual
13.19may be applied to the four-year experience requirement. However, none of this practical
13.20plumbing experience may be applied if the individual did not have any practical plumbing
13.21experience in the 12-month period immediately prior to becoming a plumber's apprentice
13.22or registered unlicensed individual. The Plumbing Board may adopt rules to evaluate
13.23whether the individual's past practical plumbing experience is applicable in preparing for
13.24the journeyman's examination. If two years after completing the training the individual
13.25has not taken the examination, the four years of experience shall be forfeited.
13.26    The commissioner may allow an extension of the two-year period for taking the
13.27exam for cases of hardship or other appropriate circumstances.
13.28    Subd. 3. Registration, rules, applications, renewals, and fees. An unlicensed
13.29individual may register by completing and submitting to the commissioner a registration
13.30form provided by the commissioner. A completed registration form must state the date
13.31the individual began training, the individual's age, schooling, previous experience, and
13.32employer, and other information required by the commissioner. The board may prescribe
13.33rules, not inconsistent with this section, for the registration of unlicensed individuals. Each
13.34applicant for initial registration as a plumber's apprentice registered unlicensed individual
13.35shall pay the department an application fee of $25. Applications for initial registration
13.36may be submitted at any time. Registration must be renewed annually and shall be for the
14.1period from July 1 of each year to June 30 of the following year. Applications for renewal
14.2registration must be received by the commissioner by June 30 of each registration period
14.3on forms provided by the commissioner, and must be accompanied by a fee of $25. An
14.4application for renewal registration received on or after July 1 in any year but no more
14.5than three months after expiration of the previously issued registration must pay the past
14.6due renewal fee plus a late fee of $25. No applications for renewal registration will be
14.7accepted more than three months after expiration of the previously issued registration.

14.8    Sec. 28. Minnesota Statutes 2008, section 326B.84, is amended to read:
14.9326B.84 GROUNDS FOR LICENSE SANCTIONS.
14.10    In addition to the grounds set forth in section 326B.082, subdivision 11, The
14.11commissioner may deny, suspend, limit, place conditions on, or revoke a license or
14.12certificate of exemption, or may censure the person holding the use any enforcement
14.13provision in section 326B.082 against an applicant for or holder of a license or certificate
14.14of exemption, if the applicant, licensee, certificate of exemption holder, qualifying person,
14.15or affiliate of an owner, officer, member, managing employee, or affiliate of the applicant,
14.16licensee, or certificate of exemption holder, or other agent owner:
14.17    (1) has filed an application for licensure or a certificate of exemption which is
14.18incomplete in any material respect or contains any statement which, in light of the
14.19circumstances under which it is made, is false or misleading with respect to any material
14.20fact;
14.21    (2) has engaged in a fraudulent, deceptive, or dishonest practice;
14.22    (3) is permanently or temporarily enjoined by any court of competent jurisdiction
14.23from engaging in or continuing any conduct or practice involving any aspect of the
14.24business;
14.25    (4) has failed to reasonably supervise employees, agents, subcontractors, or
14.26salespersons, or has performed negligently or in breach of contract, so as to cause injury
14.27or harm to the public;
14.28    (5) has violated or failed to comply with any provision of sections 326B.802 to
14.29326B.885 , any rule or order under sections 326B.802 to 326B.885, or any other law, rule,
14.30or order related to the duties and responsibilities entrusted to the commissioner;
14.31    (6) has been convicted of a violation of the State Building Code or has refused to
14.32comply with a notice of violation or stop order issued by a certified building official, or in
14.33local jurisdictions that have not adopted the State Building Code has refused to correct a
14.34violation of the State Building Code when the violation has been documented or a notice
14.35of violation or stop order issued by a certified building official has been received;
15.1    (7) has failed to use the proceeds of any payment made to the licensee for the
15.2construction of, or any improvement to, residential real estate, as defined in section
15.3326B.802, subdivision 13 , for the payment of labor, skill, material, and machinery
15.4contributed to the construction or improvement, knowing that the cost of any labor
15.5performed, or skill, material, or machinery furnished for the improvement remains unpaid;
15.6    (8) has not furnished to the person making payment either a valid lien waiver as to
15.7any unpaid labor performed, or skill, material, or machinery furnished for an improvement,
15.8or a payment bond in the basic amount of the contract price for the improvement
15.9conditioned for the prompt payment to any person or persons entitled to payment;
15.10    (9) has engaged in an act or practice that results in compensation to an aggrieved
15.11owner or lessee from the contractor recovery fund pursuant to section 326B.89, unless:
15.12    (i) the applicant or licensee has repaid the fund twice the amount paid from the fund,
15.13plus interest at the rate of 12 percent per year; and
15.14    (ii) the applicant or licensee has obtained a surety bond in the amount of at least
15.15$40,000, issued by an insurer authorized to transact business in this state;
15.16    (10) has engaged in bad faith, unreasonable delays, or frivolous claims in defense
15.17of a civil lawsuit or arbitration arising out of their activities as a licensee or certificate
15.18of exemption holder under this chapter;
15.19    (11) has had a judgment entered against them for failure to make payments to
15.20employees, subcontractors, or suppliers, that the licensee has failed to satisfy and all
15.21appeals of the judgment have been exhausted or the period for appeal has expired;
15.22    (12) if unlicensed, has obtained a building permit by the fraudulent use of a fictitious
15.23license number or the license number of another, or, if licensed, has knowingly allowed
15.24an unlicensed person to use the licensee's license number for the purpose of fraudulently
15.25obtaining a building permit; or has applied for or obtained a building permit for an
15.26unlicensed person;
15.27    (13) has made use of a forged mechanic's lien waiver under chapter 514;
15.28    (14) has provided false, misleading, or incomplete information to the commissioner
15.29or has refused to allow a reasonable inspection of records or premises;
15.30    (15) has engaged in an act or practice whether or not the act or practice directly
15.31involves the business for which the person is licensed, that demonstrates that the applicant
15.32or licensee is untrustworthy, financially irresponsible, or otherwise incompetent or
15.33unqualified to act under the license granted by the commissioner; or
15.34    (16) has failed to comply with requests for information, documents, or other requests
15.35from the department within the time specified in the request or, if no time is specified,
15.36within 30 days of the mailing of the request by the department.

16.1    Sec. 29. Minnesota Statutes 2008, section 326B.89, subdivision 1, is amended to read:
16.2    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
16.3have the meanings given them.
16.4    (b) "Gross annual receipts" means the total amount derived from residential
16.5contracting or residential remodeling activities, regardless of where the activities are
16.6performed, and must not be reduced by costs of goods sold, expenses, losses, or any
16.7other amount.
16.8    (c) "Licensee" means a person licensed as a residential contractor or residential
16.9remodeler.
16.10    (d) "Residential real estate" means a new or existing building constructed for
16.11habitation by one to four families, and includes detached garages.
16.12    (e) "Fund" means the contractor recovery fund.
16.13(f) "Owner" when used in connection with real property, means a person who has
16.14any legal or equitable interest in real property and includes a condominium or townhome
16.15association that owns common property located in a condominium building or townhome
16.16building or an associated detached garage. Owner does not include any real estate
16.17developer.

16.18    Sec. 30. Minnesota Statutes 2008, section 326B.89, subdivision 5, is amended to read:
16.19    Subd. 5. Payment limitations. Except as otherwise provided in this section, The
16.20commissioner shall not pay compensation from the fund to an owner or a lessee in an
16.21amount greater than $75,000 per licensee. Except as otherwise provided in this section,
16.22The commissioner shall not pay compensation from the fund to owners and lessees in an
16.23amount that totals more than $150,000 per licensee. The commissioner shall not pay
16.24compensation from the fund for a final judgment based on a cause of action that arose
16.25before the commissioner's receipt of the licensee's fee required by subdivision 3. The
16.26commissioner shall only pay compensation from the fund for a final judgment that is
16.27based on a contract directly between the licensee and the homeowner or lessee that was
16.28entered into prior to the cause of action and that requires licensure as a residential building
16.29contractor or residential remodeler.

16.30    Sec. 31. Minnesota Statutes 2008, section 326B.89, subdivision 6, is amended to read:
16.31    Subd. 6. Verified application. To be eligible for compensation from the fund, an
16.32owner or lessee shall serve on the commissioner a verified application for compensation
16.33on a form approved by the commissioner. The application shall verify the following
16.34information:
17.1    (1) the specific grounds upon which the owner or lessee seeks to recover from
17.2the fund:
17.3    (2) that the owner or the lessee has obtained a final judgment in a court of competent
17.4jurisdiction against a licensee licensed under section 326B.803 326B.83;
17.5    (3) that the final judgment was obtained against the licensee on the grounds
17.6of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of
17.7performance that arose directly out of a contract directly between the licensee and the
17.8homeowner or lessee that was entered into prior to the cause of action and that occurred
17.9when the licensee was licensed and performing any of the special skills enumerated under
17.10section 326B.802, subdivision 15;
17.11    (4) the amount of the owner's or the lessee's actual and direct out-of-pocket loss on
17.12the owner's residential real estate, on residential real estate leased by the lessee, or on new
17.13residential real estate that has never been occupied or that was occupied by the licensee
17.14for less than one year prior to purchase by the owner;
17.15    (5) that the residential real estate is located in Minnesota;
17.16    (6) that the owner or the lessee is not the spouse of the licensee or the personal
17.17representative of the licensee;
17.18    (7) the amount of the final judgment, any amount paid in satisfaction of the final
17.19judgment, and the amount owing on the final judgment as of the date of the verified
17.20application;
17.21    (8) that the owner or lessee has diligently pursued remedies against all the judgment
17.22debtors and all other persons liable to the judgment debtor in the contract for which the
17.23owner or lessee seeks recovery from the fund; and
17.24    (9) that the verified application is being served within two years after the judgment
17.25became final.
17.26    The verified application must include documents evidencing the amount of the
17.27owner's or the lessee's actual and direct out-of-pocket loss. The owner's and the lessee's
17.28actual and direct out-of-pocket loss shall not include attorney fees, litigation costs or fees,
17.29interest on the loss, and interest on the final judgment obtained as a result of the loss. Any
17.30amount paid in satisfaction of the final judgment shall be applied to the owner's or lessee's
17.31actual and direct out-of-pocket loss. An owner or lessee may serve a verified application
17.32regardless of whether the final judgment has been discharged by a bankruptcy court. A
17.33judgment issued by a court is final if all proceedings on the judgment have either been
17.34pursued and concluded or been forgone, including all reviews and appeals. For purposes
17.35of this section, owners who are joint tenants or tenants in common are deemed to be a
17.36single owner. For purposes of this section, owners and lessees eligible for payment of
18.1compensation from the fund shall not include government agencies, political subdivisions,
18.2financial institutions, and any other entity that purchases, guarantees, or insures a loan
18.3secured by real estate.

18.4    Sec. 32. Minnesota Statutes 2008, section 326B.89, subdivision 7, is amended to read:
18.5    Subd. 7. Commissioner review. The commissioner shall within 120 days after
18.6receipt of the complete verified application:
18.7    (1) enter into an agreement with an owner or a lessee that resolves the verified
18.8application for compensation from the fund; or
18.9    (2) issue an order to the owner or the lessee accepting, modifying, or denying the
18.10verified application for compensation from the fund.
18.11    Upon receipt of an order issued under clause (2), the owner or the lessee shall have
18.1230 days to serve upon the commissioner a written request for a hearing. If the owner or
18.13the lessee does not serve upon the commissioner a timely written request for hearing, the
18.14order issued under clause (2) shall become a final order of the commissioner that may not
18.15be reviewed by any court or agency. The commissioner shall order compensation from
18.16the fund only if the owner or the lessee has filed a verified application that complies with
18.17subdivision 6 and if the commissioner determines based on review of the application that
18.18compensation should be paid from the fund. The commissioner shall not be bound by any
18.19prior settlement, compromise, or stipulation between the owner or the lessee and the
18.20licensee.

18.21    Sec. 33. Minnesota Statutes 2008, section 326B.89, subdivision 8, is amended to read:
18.22    Subd. 8. Administrative hearing. If an owner or a lessee timely serves a request
18.23for hearing under subdivision 7, the commissioner shall request that an administrative law
18.24judge be assigned and that a hearing be conducted under the contested case provisions
18.25of chapter 14 within 30 45 days after the service of the request for hearing upon the
18.26commissioner received the request for hearing, unless the parties agree to a later date. The
18.27commissioner must notify the owner or lessee of the time and place of the hearing at least
18.2815 days before the hearing. Upon petition of the commissioner, the administrative law
18.29judge shall continue the hearing up to 60 days and upon a showing of good cause may
18.30continue the hearing for such additional period as the administrative law judge deems
18.31appropriate.
18.32At the hearing the owner or the lessee shall have the burden of proving by substantial
18.33evidence under subdivision 6, clauses (1) to (8). Whenever an applicant's judgment
18.34is by default, stipulation, or consent, or whenever the action against the licensee was
19.1defended by a trustee in bankruptcy, the applicant shall have the burden of proving the
19.2cause of action for fraudulent, deceptive, or dishonest practices, conversion of funds, or
19.3failure of performance. Otherwise, the judgment shall create a rebuttable presumption
19.4of the fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of
19.5performance. This presumption is a presumption affecting the burden of producing
19.6evidence.
19.7The administrative law judge shall issue findings of fact, conclusions of law, and
19.8order. If the administrative law judge finds that compensation should be paid to the owner
19.9or the lessee, the administrative law judge shall order the commissioner to make payment
19.10from the fund of the amount it finds to be payable pursuant to the provisions of and in
19.11accordance with the limitations contained in this section. The order of the administrative
19.12law judge shall constitute the final decision of the agency in the contested case. Judicial
19.13review of the administrative law judge's findings of fact, conclusions of law, and order
19.14shall be in accordance with sections 14.63 to 14.69.

19.15    Sec. 34. Minnesota Statutes 2008, section 326B.89, subdivision 10, is amended to read:
19.16    Subd. 10. Right of subrogation. Notwithstanding subdivisions 1 to 9 and 11 to 16,
19.17the commissioner shall not pay compensation from the fund to an owner or lessee unless
19.18and until the owner or lessee executes an assignment to the commissioner of all rights,
19.19title, and interest in the final judgment in the amount of the compensation to be paid under
19.20an agreement under subdivision 7, clause (1), or a final order issued under subdivision
19.217, clause (2), or subdivision 8. If the commissioner pays compensation from the fund to
19.22an owner or a lessee pursuant to an agreement under subdivision 7, clause (1), or a final
19.23order issued under subdivision 7, clause (2), or subdivision 8, then the commissioner
19.24shall be subrogated to all of the rights, title, and interest in the owner's or lessee's final
19.25judgment in the amount of compensation paid from the fund and the owner or the lessee
19.26shall assign to the commissioner all rights, title, and interest in the final judgment in
19.27the amount of compensation paid. The commissioner shall deposit in the fund money
19.28recovered under this subdivision.

19.29    Sec. 35. Minnesota Statutes 2008, section 326B.89, subdivision 13, is amended to read:
19.30    Subd. 13. Condominiums or townhouses. (a) For purposes of this section, the
19.31owner or the lessee of a condominium or townhouse is considered an owner or a lessee
19.32of residential property terms "owner" and "lessee" of residential real estate include the
19.33following, regardless of the number of residential units per building.:
19.34(1) an owner or lessee of an apartment as defined in and governed by chapter 515;
20.1(2) an owner or lessee of a unit in a common interest community created under or
20.2governed by chapter 515B;
20.3(3) an owner or lessee of a unit in a planned community or cooperative created prior
20.4to June 1, 1994, that has not elected to be governed by chapter 515B;
20.5(4) an association or master association, as defined in chapter 515B, that owns or
20.6leases the common elements of a common interest community; and
20.7(5) a homeowners association that owns or leases the common elements in a
20.8planned community or cooperative created prior to June 1, 1994, that has not elected
20.9to be governed by chapter 515B.
20.10(b) For purposes of this subdivision, "common elements" means common areas and
20.11facilities as defined in chapter 515 and common elements as defined in chapter 515B.

20.12    Sec. 36. Minnesota Statutes 2008, section 326B.89, is amended by adding a
20.13subdivision to read:
20.14    Subd. 18. Recovery of payments. If the commissioner pays compensation from the
20.15fund on the basis of any false or misleading information provided to the commissioner
20.16in connection with the application for compensation, then, upon the application of the
20.17commissioner, a district court shall order the owner or lessee to repay to the fund all
20.18such compensation paid from the fund. In addition, the state may be allowed an amount
20.19determined by the court to be the reasonable value of all or part of the litigation expenses,
20.20including attorney fees, incurred by the state. The commissioner shall deposit in the fund
20.21money recovered under this subdivision.

20.22    Sec. 37. Minnesota Statutes 2008, section 326B.89, is amended by adding a
20.23subdivision to read:
20.24    Subd. 19. Payment of penalty. If an owner or lessee violates section 326B.084 in
20.25connection with an application for compensation from the fund, and if the commissioner
20.26issues to the owner or lessee an administrative order under section 326B.082, subdivision
20.277, for that violation of section 326B.084, then the commissioner shall deposit in the fund
20.28all penalties paid pursuant to the administrative order.

20.29    Sec. 38. Minnesota Statutes 2008, section 326B.921, subdivision 3, is amended to read:
20.30    Subd. 3. Registration requirement. All unlicensed individuals, other than pipefitter
20.31apprentices, must be registered under subdivision 4. No licensed high pressure piping
20.32business shall employ an unlicensed individual to assist in the practical construction and
20.33installation of high pressure piping and appurtenances unless the unlicensed individual is
21.1registered with the department. A pipefitter apprentice or registered unlicensed individual
21.2employed by a high pressure piping business may assist in the practical construction and
21.3installation of high pressure piping and appurtenances only while under direct supervision
21.4of a licensed contracting high pressure pipefitter or licensed journeyman high pressure
21.5pipefitter employed by the same high pressure piping business. The licensed contracting
21.6high pressure pipefitter or licensed journeyman high pressure pipefitter shall supervise no
21.7more than two pipefitter apprentices or registered unlicensed individuals. The licensed
21.8contracting high pressure pipefitter or journeyman high pressure pipefitter is responsible
21.9for ensuring that all high pressure piping work performed by the pipefitter apprentice or
21.10registered unlicensed individual complies with Minnesota Statutes and Minnesota Rules.
21.11    The board shall make recommendations by October 1, 2008, to the chairs of
21.12the standing committees of the senate and house of representatives having jurisdiction
21.13over high pressure piping regulation on the ratio of licensed contracting high pressure
21.14pipefitters or licensed journeyman high pressure pipefitters to pipefitter apprentices or
21.15registered unlicensed individuals for purposes of supervision.

21.16    Sec. 39. Laws 2010, chapter 183, section 8, the effective date, is amended to read:
21.17EFFECTIVE DATE.This section is effective August 1, 2009 2010, except that the
21.18requirement under subdivision 2 that a master or journeyman plumber must be certified by
21.19the Minnesota Plumbing Board and the fee in subdivision 4 are not effective until 180
21.20days after the board adopts rules.

21.21    Sec. 40. REPEALER.
21.22Minnesota Statutes 2008, sections 299G.11; 299G.13, subdivisions 1, 6, 9, 16, 17,
21.2318, 19, 20, 21, 22, 23, 24, 25, 26, 27, and 28; 299G.14; 299G.15; 299G.16; 299G.17;
21.24299G.18; 326B.115; and 326B.37, subdivision 13, are repealed.
21.25Minnesota Rules, parts 5200.0020; 5200.0050; and 5200.0080, subparts 2, 3, 4,
21.264a, 4b, 6, 7, and 8, are repealed.

21.27    Sec. 41. EFFECTIVE DATE.
21.28Sections 2 to 7 and 39 are effective the day following final enactment.