HF 4444

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/18/2024 03:42pm

A bill for an act
relating to employees; prohibiting misclassification of employees; imposing
penalties; classifying data; amending Minnesota Statutes 2022, sections 177.27,
subdivision 3; 181.171, subdivision 1; 181.722; 181.723; 270B.14, subdivision
17, by adding a subdivision; 326B.081, subdivisions 3, 6, 8; 326B.082, subdivisions
1, 2, 4, 6, 7, 10, 11, 13, by adding a subdivision; 326B.701; Minnesota Statutes
2023 Supplement, section 177.27, subdivisions 1, 2, 4, 7; proposing coding for
new law in Minnesota Statutes, chapter 181.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 1, is amended
to read:

Subdivision 1.

Examination of records.

The commissioner may enter during reasonable
office hours or upon request and inspect the place of business or employment of any employer
of employees working in the state, to examine and inspect books, registers, payrolls, and
other records of any employer that in any way relate to wages, hours, and other conditions
of employment of any employees. The commissioner may transcribe any or all of the books,
registers, payrolls, and other records as the commissioner deems necessary or appropriate
and may question the new text begin employer, new text end employees new text begin , and other persons new text end to ascertain compliance with
new text begin any of the new text end sections deleted text begin 177.21 to 177.435 and 181.165 deleted text end new text begin listed in subdivision 4 new text end . The commissioner
may investigate wage claims or complaints by an employee against an employer if the failure
to pay a wage may violate Minnesota law or an order or rule of the department.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended
to read:

Subd. 2.

Submission of records; penalty.

The commissioner may require the employer
of employees working in the state to submit to the commissioner photocopies, certified
copies, or, if necessary, the originals of deleted text begin employment deleted text end records new text begin that relate to employment or
employment status new text end which the commissioner deems necessary or appropriate. The records
which may be required include full and correct statements in writing, including sworn
statements by the employer, containing information relating to wages, hours, names,
addresses, and any other information pertaining to the employer's employees and the
conditions of their employment as the commissioner deems necessary or appropriate.

The commissioner may require the records to be submitted by certified mail delivery
or, if necessary, by personal delivery by the employer or a representative of the employer,
as authorized by the employer in writing.

The commissioner may fine the employer up to $10,000 for each failure to submit or
deliver records as required by this section. This penalty is in addition to any penalties
provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
under this subdivision, the appropriateness of such penalty to the size of the employer's
business and the gravity of the violation shall be considered.

Sec. 3.

Minnesota Statutes 2022, section 177.27, subdivision 3, is amended to read:

Subd. 3.

Adequacy of records.

If the records maintained by the employer do not provide
sufficient information to determine the exact amount of back wages due an employee, the
commissioner may make a determination of wages due based on available evidence deleted text begin and
mediate a settlement with the employer deleted text end .

Sec. 4.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended
to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 179.86, 181.02, 181.03, 181.031,
181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, paragraph
(a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, new text begin 181.723, new text end 181.79,
181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09,
subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section
177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer
to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated.
For purposes of this subdivision only, a violation is repeated if at any time during the two
years that preceded the date of violation, the commissioner issued an order to the employer
for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or
the commissioner and the employer have entered into a settlement agreement that required
the employer to pay back wages that were required by sections 177.41 to 177.435. The
department shall serve the order upon the employer or the employer's authorized
representative in person or by certified mail at the employer's place of business. An employer
who wishes to contest the order must file written notice of objection to the order with the
commissioner within 15 calendar days after being served with the order. A contested case
proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If,
within 15 calendar days after being served with the order, the employer fails to file a written
notice of objection with the commissioner, the order becomes a final order of the
commissioner. For the purposes of this subdivision, an employer includes a contractor that
has assumed a subcontractor's liability within the meaning of section 181.165.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended
to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have
violated a section identified in subdivision 4, or any rule adopted under section 177.28,
181.213, or 181.215, and the commissioner issues an order to comply, the commissioner
shall order the employer to cease and desist from engaging in the violative practice and to
take such affirmative steps that in the judgment of the commissioner will effectuate the
purposes of the section or rule violated. new text begin In addition to remedies, damages, and penalties
provided for in the violated section, new text end the commissioner shall order the employer to pay to
the aggrieved parties back pay, gratuities, and compensatory damages, less any amount
actually paid to the deleted text begin employee deleted text end new text begin aggrieved parties new text end by the employer, and for an additional equal
amount as liquidated damages. Any employer who is found by the commissioner to have
repeatedly or willfully violated a section or sections identified in subdivision 4 shall be
subject to deleted text begin a deleted text end new text begin an additional new text end civil penalty of up to $10,000 for each violation for each employee.
In determining the amount of a civil penalty under this subdivision, the appropriateness of
such penalty to the size of the employer's business and the gravity of the violation shall be
considered. In addition, the commissioner may order the employer to reimburse the
department and the attorney general for all appropriate litigation and hearing costs expended
in preparation for and in conducting the contested case proceeding, unless payment of costs
would impose extreme financial hardship on the employer. If the employer is able to establish
extreme financial hardship, then the commissioner may order the employer to pay a
percentage of the total costs that will not cause extreme financial hardship. Costs include
but are not limited to the costs of services rendered by the attorney general, private attorneys
if engaged by the department, administrative law judges, court reporters, and expert witnesses
as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance
of a commissioner's order from the date the order is signed by the commissioner until it is
paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The
commissioner may establish escrow accounts for purposes of distributing new text begin remedies and new text end
damages.

Sec. 6.

Minnesota Statutes 2022, section 181.171, subdivision 1, is amended to read:

Subdivision 1.

Civil action; damages.

A person may bring a civil action seeking redress
for violations of sections 181.02, 181.03, 181.031, 181.032, 181.08, 181.09, 181.10, 181.101,
181.11, 181.13, 181.14, 181.145, deleted text begin and deleted text end 181.15 new text begin , 181.722, and 181.723 new text end directly to district court.
An employer who is found to have violated the above sections is liable to the aggrieved
party for the civil penalties or damages provided for in the section violated. An employer
who is found to have violated the above sections shall also be liable for compensatory
damages and other appropriate relief including but not limited to injunctive relief.

Sec. 7.

Minnesota Statutes 2022, section 181.722, is amended to read:

181.722 deleted text begin MISREPRESENTATION deleted text end new text begin MISCLASSIFICATION new text end OF deleted text begin EMPLOYMENT
RELATIONSHIP PROHIBITED deleted text end new text begin EMPLOYEES new text end .

Subdivision 1.

deleted text begin Prohibition deleted text end new text begin Prohibited activities related to employment status new text end .

deleted text begin No
employer shall misrepresent the nature of its employment relationship with its employees
to any federal, state, or local government unit; to other employers; or to its employees. An
employer misrepresents the nature of its employment relationship with its employees if it
makes any statement regarding the nature of the relationship that the employer knows or
has reason to know is untrue and if it fails to report individuals as employees when legally
required to do so.
deleted text end

new text begin (a) A person shall not:
new text end

new text begin (1) fail to classify, represent, or treat an individual who is the person's employee pursuant
to subdivision 3 as an employee in accordance with the requirements of any applicable local,
state, or federal law. A violation under this clause is in addition to any violation of local,
state, or federal law;
new text end

new text begin (2) fail to report or disclose to any person or to any local, state, or federal government
agency an individual who is the person's employee pursuant to subdivision 3 as an employee
when required to do so under any applicable local, state, or federal law. Each failure to
report or disclose an individual as an employee shall constitute a separate violation of this
clause; or
new text end

new text begin (3) require or request an individual who is the person's employee pursuant to subdivision
3 to enter into any agreement or complete any document that misclassifies, misrepresents,
or treats the individual as an independent contractor or otherwise does not reflect that the
individual is the person's employee pursuant to subdivision 3. Each agreement or completed
document constitutes a separate violation of this provision.
new text end

new text begin (b) An owner, partner, principal, member, officer, or agent, on behalf of the person, who
engaged in any of the prohibited activities in this subdivision may be held individually
liable.
new text end

new text begin (c) An order issued by the commissioner to a person for engaging in any of the prohibited
activities in this subdivision is in effect against any successor person. A person is a successor
person if the person shares three or more of the following with the person to whom the order
was issued:
new text end

new text begin (1) has one or more of the same owners, members, principals, officers, or managers;
new text end

new text begin (2) performs similar work within the state of Minnesota;
new text end

new text begin (3) has one or more of the same telephone or fax numbers;
new text end

new text begin (4) has one or more of the same email addresses or websites;
new text end

new text begin (5) employs or engages substantially the same individuals to provide or perform services;
new text end

new text begin (6) utilizes substantially the same vehicles, facilities, or equipment; or
new text end

new text begin (7) lists or advertises substantially the same project experience and portfolio of work.
new text end

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) "Person" means any individual, sole proprietor, limited liability
company, limited liability partnership, corporation, partnership, incorporated or
unincorporated association, joint stock company, or any other legal or commercial entity.
new text end

new text begin (b) "Department" means the Department of Labor and Industry.
new text end

new text begin (c) "Commissioner" means the commissioner of labor and industry or a duly designated
representative of the commissioner who is either an employee of the Department of Labor
and Industry or a person working under contract with the Department of Labor and Industry.
new text end

new text begin (d) "Individual" means a human being.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Agreements to misclassify prohibited. deleted text end

deleted text begin No employer shall require or request
any employee to enter into any agreement, or sign any document, that results in
misclassification of the employee as an independent contractor or otherwise does not
accurately reflect the employment relationship with the employer.
deleted text end

Subd. 3.

Determination of employment relationship.

For purposes of this section, the
nature of an employment relationship is determined using the same tests and in the same
manner as employee status is determined under the applicable workers' compensation deleted text begin and deleted text end new text begin
or new text end unemployment insurance program laws and rules.

Subd. 4.

deleted text begin Civil remedy deleted text end new text begin Damages and penalties new text end .

deleted text begin A construction worker, as defined in
section 179.254, who is not an independent contractor and has been injured by a violation
of this section, may bring deleted text end deleted text begin a civil action for damages against the violator. If the construction
worker injured is an employee of the violator of this section, the employee's representative,
as defined in section 179.01, subdivision 5, may bring a civil action for damages against
the violator on behalf of the employee. The court may award attorney fees, costs, and
disbursements to a construction worker recovering under this section.
deleted text end

new text begin (a) The following damages and penalties may be imposed for a violation of this section:
new text end

new text begin (1) compensatory damages to the individual the person has failed to classify, represent,
or treat as an employee pursuant to subdivision 3. Compensatory damages includes but is
not limited to the value of supplemental pay including minimum wage; overtime; shift
differentials; vacation pay, sick pay, and other forms of paid time off; health insurance; life
and disability insurance; retirement plans; savings plans and any other form of benefit;
employer contributions to unemployment insurance; Social Security and Medicare; and any
costs and expenses incurred by the individual resulting from the person's failure to classify,
represent, or treat the individual as an employee;
new text end

new text begin (2) a penalty of up to $10,000 for each individual the person failed to classify, represent,
or treat as an employee pursuant to subdivision 3;
new text end

new text begin (3) a penalty of up to $10,000 for each violation of subdivision 1; and
new text end

new text begin (4) a penalty of $1,000 for each person who delays, obstructs, or otherwise fails to
cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure
to cooperate constitutes a separate violation.
new text end

new text begin (b) This section may be investigated and enforced under the commissioner's authority
under state law.
new text end

Subd. 5.

Reporting of violations.

Any court finding that a violation of this section has
occurred shall transmit a copy of its findings of fact and conclusions of law to the
commissioner of labor and industry. The commissioner of labor and industry shall report
the finding to relevant new text begin local, new text end state new text begin , new text end and federal agencies, including the commissioner of
commerce, the commissioner of employment and economic development, the commissioner
of revenue, the federal Internal Revenue Service, and the United States Department of Labor.

Sec. 8.

Minnesota Statutes 2022, section 181.723, is amended to read:

181.723 new text begin MISCLASSIFICATION OF new text end CONSTRUCTION deleted text begin CONTRACTORS deleted text end new text begin
EMPLOYEES new text end .

Subdivision 1.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Person" means any individual, new text begin sole proprietor, new text end limited liability company, limited
liability partnership, corporation, partnership, incorporated or unincorporated association,
deleted text begin sole proprietorship, deleted text end joint stock company, or any other legal or commercial entity.

(b) "Department" means the Department of Labor and Industry.

(c) "Commissioner" means the commissioner of labor and industry or a duly designated
representative of the commissioner who is either an employee of the Department of Labor
and Industry or person working under contract with the Department of Labor and Industry.

(d) "Individual" means a human being.

(e) "Day" means calendar day unless otherwise provided.

(f) "Knowingly" means knew or could have known with the exercise of reasonable
diligence.

(g) "Business entity" means a person deleted text begin other than an individual or a sole proprietor deleted text end new text begin as that
term is defined in paragraph (a), except the term does not include an individual new text end .

new text begin (h) "Independent contractor" means a business entity that meets all the requirements
under subdivision 4, paragraph (a).
new text end

Subd. 2.

Limited application.

This section only applies to deleted text begin individuals deleted text end new text begin persons providing
or new text end performing deleted text begin public or private sector commercial or residential deleted text end building construction or
improvement services. Building construction deleted text begin and deleted text end new text begin or new text end improvement services deleted text begin do not deleted text end include new text begin
all public or private sector commercial or residential building construction or improvement
services except for: new text end (1) the manufacture, supply, or sale of products, materials, or
merchandise; (2) landscaping services for the maintenance or removal of existing plants,
shrubs, trees, and other vegetation, whether or not the services are provided as part of a
contract for the building construction or improvement services; and (3) all other landscaping
services, unless the other landscaping services are provided as part of a contract for the
building construction or improvement services.

Subd. 3.

Employee-employer relationship.

Except as provided in subdivision 4, for
purposes of chapters 176, 177, new text begin 181, new text end 181A, 182, deleted text begin and deleted text end 268, deleted text begin as of January 1, 2009 deleted text end new text begin and 326B new text end ,
an individual who new text begin provides or new text end performs new text begin building construction or improvement new text end services for
a person that are in the course of the person's trade, business, profession, or occupation is
an employee of that person and that person is an employer of the individual.

Subd. 4.

Independent contractor.

(a) An individual is an independent contractor and
not an employee of the person for whom the individual is new text begin providing or new text end performing services
in the course of the person's trade, business, profession, or occupation only if the individual new text begin
is operating as a business entity that meets all of the following requirements at the time the
services were provided or performed new text end :

deleted text begin (1) maintains a separate business with the individual's own office, equipment, materials,
and other facilities;
deleted text end

deleted text begin (2)(i) holds or has applied for a federal employer identification number or (ii) has filed
business or self-employment income tax returns with the federal Internal Revenue Service
if the individual has performed services in the previous year;
deleted text end

deleted text begin (3) is operating under contract to perform the specific services for the person for specific
amounts of money and under which the individual controls the means of performing the
services;
deleted text end

deleted text begin (4) is incurring the main expenses related to the services that the individual is performing
for the person under the contract;
deleted text end

deleted text begin (5) is responsible for the satisfactory completion of the services that the individual has
contracted to perform for the person and is liable for a failure to complete the services;
deleted text end

deleted text begin (6) receives compensation from the person for the services performed under the contract
on a commission or per-job or competitive bid basis and not on any other basis;
deleted text end

deleted text begin (7) may realize a profit or suffer a loss under the contract to perform services for the
person;
deleted text end

deleted text begin (8) has continuing or recurring business liabilities or obligations; and
deleted text end

deleted text begin (9) the success or failure of the individual's business depends on the relationship of
business receipts to expenditures.
deleted text end

deleted text begin An individual who is not registered, if required by section 326B.701, is presumed to be
an employee of a person for whom the individual performs services in the course of the
person's trade, business, profession, or occupation. The person for whom the services were
performed may rebut this presumption by showing that the unregistered individual met all
nine factors in this paragraph at the time the services were performed.
deleted text end

deleted text begin (b) If an individual is an owner or partial owner of a business entity, the individual is
an employee of the person for whom the individual is performing services in the course of
the person's trade, business, profession, or occupation, and is not an employee of the business
entity in which the individual has an ownership interest, unless:
deleted text end

deleted text begin (1) the business entity meets the nine factors in paragraph (a);
deleted text end

deleted text begin (2) invoices and payments are in the name of the business entity; and
deleted text end

deleted text begin (3) the business entity is registered with the secretary of state, if required.
deleted text end

deleted text begin If the business entity in which the individual has an ownership interest is not registered,
if required by section 326B.701, the individual is presumed to be an employee of a person
for whom the individual performs services and not an employee of the business entity in
which the individual has an ownership interest. The person for whom the services were
performed may rebut the presumption by showing that the business entity met the
requirements of clauses (1) to (3) at the time the services were performed.
deleted text end

new text begin (1) was established and maintained separately from and independently of the person for
whom the services were provided or performed;
new text end

new text begin (2) owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space,
or other facilities that are used by the business entity to provide or perform building
construction or improvement services;
new text end

new text begin (3) provides or performs, or offers to provide or perform, the same or similar building
construction or improvement services for multiple persons or the general public;
new text end

new text begin (4) is in compliance with all of the following:
new text end

new text begin (i) holds a federal employer identification number if required by federal law;
new text end

new text begin (ii) holds a Minnesota tax identification number if required by Minnesota law;
new text end

new text begin (iii) has received and retained 1099 forms for income received for building construction
or improvement services provided or performed, if required by Minnesota or federal law;
new text end

new text begin (iv) has filed business or self-employment income tax returns, including estimated tax
filings, with the federal Internal Revenue Service and the Department of Revenue, as the
business entity or as a self-employed individual reporting income earned, for providing or
performing building construction or improvement services, if any, in the previous 12 months;
and
new text end

new text begin (v) has completed and provided a W-9 federal income tax form to the person for whom
the services were provided or performed if required by federal law;
new text end

new text begin (5) is in good standing as defined by section 5.26 and, if applicable, has a current
certificate of good standing issued by the secretary of state pursuant to section 5.12;
new text end

new text begin (6) has a Minnesota unemployment insurance account if required by chapter 268;
new text end

new text begin (7) has obtained required workers' compensation insurance coverage if required by
chapter 176;
new text end

new text begin (8) holds current business licenses, registrations, and certifications if required by chapter
326B and sections 327.31 to 327.36;
new text end

new text begin (9) is operating under a written contract to provide or perform the specific services for
the person that:
new text end

new text begin (i) is signed and dated by both an authorized representative of the business entity and
of the person for whom the services are being provided or performed;
new text end

new text begin (ii) is fully executed no later than 30 days after the date work commences;
new text end

new text begin (iii) identifies the specific services to be provided or performed under the contract;
new text end

new text begin (iv) provides for compensation from the person for the services provided or performed
under the contract on a commission or per-job or competitive bid basis and not on any other
basis; and
new text end

new text begin (v) the requirements of item (ii) shall not apply to change orders;
new text end

new text begin (10) submits invoices and receives payments for completion of the specific services
provided or performed under the written proposal, contract, or change order in the name of
the business entity. Payments made in cash do not meet this requirement;
new text end

new text begin (11) the terms of the written proposal, contract, or change order provide the business
entity control over the means of providing or performing the specific services, and the
business entity in fact controls the provision or performance of the specific services;
new text end

new text begin (12) incurs the main expenses and costs related to providing or performing the specific
services under the written proposal, contract, or change order;
new text end

new text begin (13) is responsible for the completion of the specific services to be provided or performed
under the written proposal, contract, or change order and is responsible, as provided under
the written proposal, contract, or change order, for failure to complete the specific services;
and
new text end

new text begin (14) may realize additional profit or suffer a loss, if costs and expenses to provide or
perform the specific services under the written proposal, contract, or change order are less
than or greater than the compensation provided under the written proposal, contract, or
change order.
new text end

new text begin (b)(1) Any individual providing or performing the services as or for a business entity is
an employee of the person who engaged the business entity and is not an employee of the
business entity, unless the business entity meets all of the requirements under subdivision
4, paragraph (a).
new text end

new text begin (2) Any individual who is determined to be the person's employee is acting as an agent
of and in the interest of the person when engaging any other individual or business entity
to provide or perform any portion of the services that the business entity was engaged by
the person to provide or perform.
new text end

new text begin (3) Any individual engaged by an employee of the person, at any tier under the person,
is also the person's employee, unless the individual is providing or performing the services
as or for a business entity that meets the requirements of subdivision 4, paragraph (a).
new text end

new text begin (4) Clauses (1) to (3) do not create an employee-employer relationship between a person
and an employee at any tier under the person if there is an intervening business entity in the
contractual chain that meets the requirements of subdivision 4, paragraph (a).
new text end

Subd. 7.

Prohibited activities related to independent contractor status.

(a) The
prohibited activities in deleted text begin this subdivision deleted text end new text begin paragraphs (b) and (c) new text end are in addition to deleted text begin those deleted text end new text begin the
activities new text end prohibited in sections 326B.081 to 326B.085.

(b) An individual new text begin providing or performing building construction or improvement services
new text end shall not deleted text begin hold himself or herself out deleted text end new text begin represent themselves new text end as an independent contractor
unless the individual new text begin is operating as a business entity that new text end meets new text begin all new text end the requirements of
subdivision 4 new text begin , paragraph (a) new text end .

(c) A person who provides new text begin or performs building new text end construction new text begin or improvement new text end services
in the course of the person's trade, business, occupation, or profession shall not:

(1) new text begin as a condition of payment for services provided or performed, new text end require an individual
deleted text begin through coercion, misrepresentation, or fraudulent means deleted text end new text begin , who is an employee pursuant to
this section, to register as a construction contractor under section 326B.701, or new text end to adopt new text begin or
agree to being classified, represented, or treated as an new text end independent contractor deleted text begin status deleted text end or form
a business entity new text begin . Each instance of conditioning payment to an individual who is an employee
on one of these conditions shall constitute a separate violation of this provision new text end ;

(2) deleted text begin knowingly misrepresent or misclassify an individual as an independent contractor. deleted text end new text begin
fail to classify, represent, or treat an individual who is an employee pursuant to this section
as an employee in accordance with the requirements of any of the chapters listed in
subdivision 3. Failure to classify, represent, or treat an individual who is an employee
pursuant to this section as an employee in accordance with each requirement of a chapter
listed in subdivision 3 shall constitute a separate violation of this provision;
new text end

new text begin (3) fail to report or disclose to any person or to any local, state, or federal government
agency an individual who is an employee pursuant to subdivision 3, as an employee when
required to do so under any applicable local, state, or federal law. Each failure to report or
disclose an individual as an employee shall constitute a separate violation of this provision;
new text end

new text begin (4) require or request an individual who is an employee pursuant to this section to enter
into any agreement or complete any document that misclassifies, misrepresents, or treats
the individual as an independent contractor or otherwise does not reflect that the individual
is an employee pursuant to this section. Each agreement or completed document shall
constitute a separate violation of this provision; or
new text end

new text begin (5) require an individual who is an employee under this section to register under section
326B.701.
new text end

new text begin (d) In addition to the person providing or performing building construction or
improvement services in the course of the person's trade, business, occupation, or profession,
any owner, partner, principal, member, officer, or agent who engaged in any of the prohibited
activities in this subdivision may be held individually liable.
new text end

new text begin (e) An order issued by the commissioner to a person for engaging in any of the prohibited
activities in this subdivision is in effect against any successor person. A person is a successor
person if the person shares three or more of the following with the person to whom the order
was issued:
new text end

new text begin (1) has one or more of the same owners, members, principals, officers, or managers;
new text end

new text begin (2) performs similar work within the state of Minnesota;
new text end

new text begin (3) has one or more of the same telephone or fax numbers;
new text end

new text begin (4) has one or more of the same email addresses or websites;
new text end

new text begin (5) employs or engages substantially the same individuals to provide or perform building
construction or improvement services;
new text end

new text begin (6) utilizes substantially the same vehicles, facilities, or equipment; or
new text end

new text begin (7) lists or advertises substantially the same project experience and portfolio of work.
new text end

new text begin (f) If a person who has engaged an individual to provide or perform building construction
or improvement services that are in the course of the person's trade, business, profession,
or occupation, classifies, represents, treats, reports, or discloses the individual as an
independent contractor, the person shall maintain, for at least three years, and in a manner
that may be readily produced to the commissioner upon demand, all the information and
documentation upon which the person based the determination that the individual met all
the requirements under subdivision 4, paragraph (a), at the time the individual was engaged
and at the time the services were provided or performed.
new text end

new text begin (g) The following damages and penalties may be imposed for a violation of this section:
new text end

new text begin (1) compensatory damages to the individual the person failed to classify, represent, or
treat as an employee pursuant to this section. Compensatory damages include but are not
limited to the value of supplemental pay including minimum wage; overtime; shift
differentials; vacation pay; sick pay; and other forms of paid time off; health insurance; life
and disability insurance; retirement plans; saving plans and any other form of benefit;
employer contributions to unemployment insurance; Social Security and Medicare and any
costs and expenses incurred by the individual resulting from the person's failure to classify,
represent, or treat the individual as an employee;
new text end

new text begin (2) a penalty of up to $10,000 for each individual the person failed to classify, represent,
or treat as an employee pursuant to this section;
new text end

new text begin (3) a penalty of up to $10,000 for each violation of this subdivision; and
new text end

new text begin (4) a penalty of $1,000 for any person who delays, obstructs, or otherwise fails to
cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure
to cooperate constitutes a separate violation.
new text end

new text begin (h) This section may be investigated and enforced under the commissioner's authority
under state law.
new text end

Subd. 13.

Rulemaking.

The commissioner may, in consultation with the commissioner
of revenue and the commissioner of employment and economic development, adopt, amend,
suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the
commissioner's responsibilities under this section. deleted text begin This subdivision is effective May 26,
2007.
deleted text end

Subd. 15.

Notice and review by commissioners of revenue and employment and
economic development.

When the commissioner has reason to believe that a person has
violated subdivision 7, deleted text begin paragraph (b); or (c), clause (1) or (2), deleted text end the commissioner must notify
the commissioner of revenue and the commissioner of employment and economic
development. Upon receipt of notification from the commissioner, the commissioner of
revenue must review the information returns required under section 6041A of the Internal
Revenue Code. The commissioner of revenue shall also review the submitted certification
that is applicable to returns audited or investigated under section 289A.35.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, except that the
amendments to subdivision 4 are effective for contracts entered into on or after that date
and for all building construction or improvement services provided or performed on or after
January 1, 2025.
new text end

Sec. 9.

new text begin [181.724] INTERGOVERNMENTAL MISCLASSIFICATION
ENFORCEMENT AND EDUCATION PARTNERSHIP ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section and section 181.725 may be cited as the
"Intergovernmental Misclassification Enforcement and Education Partnership Act."
new text end

new text begin Subd. 2. new text end

new text begin Policy and statement of purpose. new text end

new text begin It is the policy of the state of Minnesota to
prevent employers from misclassifying workers, because employee misclassification allows
an employer to illegally evade obligations under state labor, employment, and tax laws,
including but not limited to the laws governing minimum wage, overtime, unemployment
insurance, paid family medical leave, earned sick and safe time, workers' compensation
insurance, temporary disability insurance, the payment of wages, and payroll taxes.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section 181.725, the
following terms have the meanings given, unless the language or context clearly indicates
that a different meaning is intended.
new text end

new text begin (b) "Partnership entity" means one of the following governmental entities with jurisdiction
over employee misclassification in Minnesota:
new text end

new text begin (1) the Department of Labor and Industry;
new text end

new text begin (2) the Department of Revenue;
new text end

new text begin (3) the Department of Employment and Economic Development;
new text end

new text begin (4) the Department of Commerce; and
new text end

new text begin (5) the attorney general in the attorney general's enforcement capacity under sections
177.45 and 181.1721.
new text end

new text begin (c) "Employee misclassification" means the practice by an employer of not properly
classifying workers as employees.
new text end

new text begin Subd. 4. new text end

new text begin Coordination, collaboration, and information sharing. new text end

new text begin For purposes of this
section, a partnership entity:
new text end

new text begin (1) shall communicate with other entities to help detect and investigate instances of
employee misclassification;
new text end

new text begin (2) may request from, provide to, or receive from the other partnership entities data
necessary for the purpose of detecting and investigating employee misclassification, unless
prohibited by federal law; and
new text end

new text begin (3) may collaborate with one another when investigating employee misclassification,
unless prohibited by federal law. Collaboration includes but is not limited to referrals,
strategic enforcement, and joint investigations by two or more partnership entities.
new text end

Sec. 10.

new text begin [181.725] INTERGOVERNMENTAL MISCLASSIFICATION
ENFORCEMENT AND EDUCATION PARTNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Composition. new text end

new text begin The Intergovernmental Misclassification Enforcement and
Education Partnership is composed of the following members or their designees, who shall
serve on behalf of their respective partnership entities:
new text end

new text begin (1) the commissioner of labor and industry;
new text end

new text begin (2) the commissioner of revenue;
new text end

new text begin (3) the commissioner of employment and economic development;
new text end

new text begin (4) the commissioner of commerce; and
new text end

new text begin (5) the attorney general.
new text end

new text begin Subd. 2. new text end

new text begin Meetings. new text end

new text begin The commissioner of labor and industry, in consultation with other
members of the partnership, shall convene and lead meetings of the partnership to discuss
issues related to the investigation of employee misclassification and public outreach.
Members of the partnership may select a designee to attend any such meeting. Meetings
must occur at least quarterly.
new text end

new text begin Subd. 2a. new text end

new text begin Additional meetings. new text end

new text begin (a) In addition to regular quarterly meetings under
subdivision 2, the commissioner of labor and industry, in consultation with members of the
partnership, may convene and lead additional meetings for the purpose of discussing and
making recommendations under subdivision 4a.
new text end

new text begin (b) This subdivision expires July 31, 2025, unless a different expiration date is specified
in law.
new text end

new text begin Subd. 3. new text end

new text begin Roles. new text end

new text begin Each partnership entity may use the information received through its
participation in the partnership to investigate employee misclassification within their relevant
jurisdictions as follows:
new text end

new text begin (1) the Department of Labor and Industry in its enforcement authority under chapters
176, 177, and 181;
new text end

new text begin (2) the Department of Revenue in its enforcement authority under chapters 289A and
290;
new text end

new text begin (3) the Department of Employment and Economic Development in its enforcement
authority under chapters 268 and 268B;
new text end

new text begin (4) the Department of Commerce in its enforcement authority under chapters 45, 60A,
60K, 79, and 79A; and
new text end

new text begin (5) the attorney general in the attorney general's enforcement authority under sections
177.45 and 181.1721.
new text end

new text begin Subd. 4. new text end

new text begin Annual presentation to the legislature. new text end

new text begin At the request of the chairs, the
Intergovernmental Misclassification Enforcement and Education Partnership shall present
annually to members of the house of representatives and senate committees with jurisdiction
over labor. The presentation shall include information about how the partnership carried
out its duties during the preceding calendar year.
new text end

new text begin Subd. 4a. new text end

new text begin First presentation. new text end

new text begin (a) By March 1, 2025, the Intergovernmental
Misclassification Enforcement and Education Partnership shall make its first presentation
to members of the house of representatives and senate committees with jurisdiction over
labor. The first presentation may be made in a form and manner determined by the
partnership. In addition to providing information about how the partnership carried out its
duties in its first year, the presentation shall include the following information and
recommendations, including any budget requests to carry out the recommendations:
new text end

new text begin (1) consider any staffing recommendations for the partnership and each partnership
entity to carry out the duties and responsibilities under this section;
new text end

new text begin (2) provide a summary of the industries, areas, and employers with high numbers of
misclassification violations and recommendations for proactive review and enforcement
efforts;
new text end

new text begin (3) propose a system for making cross referrals between partnership entities;
new text end

new text begin (4) identify cross-training needs and a proposed cross-training plan; and
new text end

new text begin (5) propose a metric or plan for monitoring and assessing:
new text end

new text begin (i) the number and severity of employee misclassification violations; and
new text end

new text begin (ii) the adequacy and effectiveness of the partnership's duties related to employee
misclassification, including but not limited to the partnership's efforts on education, outreach,
detection, investigation, deterrence, and enforcement of employee misclassification.
new text end

new text begin (b) This subdivision expires July 31, 2025, unless a different expiration date is specified
in law.
new text end

new text begin Subd. 5. new text end

new text begin Separation. new text end

new text begin The Intergovernmental Misclassification Enforcement and
Education Partnership is not a separate agency or board and is not subject to chapter 13D.
Data shared or created by the partnership entities under this section or section 181.724 are
subject to chapter 13 and hold the data classification prescribed by law.
new text end

new text begin Subd. 6. new text end

new text begin Duties. new text end

new text begin The Intergovernmental Misclassification Enforcement and Education
Partnership shall:
new text end

new text begin (1) set goals to maximize Minnesota's efforts to detect, investigate, and deter employee
misclassification;
new text end

new text begin (2) share information to facilitate the detection and investigation of employee
misclassification;
new text end

new text begin (3) develop a process or procedure that provides a person with relevant information and
connects them with relevant partnership entities, regardless of which partnership entity that
person contacts for assistance;
new text end

new text begin (4) identify best practices in investigating employee misclassification;
new text end

new text begin (5) identify resources needed for better enforcement of employee misclassification;
new text end

new text begin (6) inform and educate stakeholders on rights and responsibilities related to employee
misclassification;
new text end

new text begin (7) serve as a unified point of contact for workers, businesses, and the public impacted
by misclassification;
new text end

new text begin (8) inform the public on enforcement actions taken by the partnership entities; and
new text end

new text begin (9) perform other duties as necessary to:
new text end

new text begin (i) increase the effectiveness of detection, investigation, enforcement, and deterrence of
employee misclassification; and
new text end

new text begin (ii) carry out the purposes of the partnership.
new text end

new text begin Subd. 7. new text end

new text begin Public outreach. new text end

new text begin (a) The commissioner of labor and industry shall maintain
on the department's website information about the Intergovernmental Misclassification
Enforcement and Education Partnership, including information about how to file a complaint
related to employee misclassification.
new text end

new text begin (b) Each partnership entity shall maintain on its website information about worker
classification laws, including requirements for employers and employees, consequences for
misclassifying workers, and contact information for other partnership entities.
new text end

new text begin Subd. 8. new text end

new text begin No limitation of other duties. new text end

new text begin This section does not limit the duties or
authorities of a partnership entity, or any other government entity, under state law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2022, section 270B.14, subdivision 17, is amended to read:

Subd. 17.

Disclosure to Department of Commerce.

new text begin (a) new text end The commissioner may disclose
to the commissioner of commerce information required to administer the Uniform Disposition
of Unclaimed Property Act in sections 345.31 to 345.60, including the Social Security
numbers of the taxpayers whose refunds are on the report of abandoned property submitted
by the commissioner to the commissioner of commerce under section 345.41. Except for
data published under section 345.42, the information received that is private or nonpublic
data retains its classification, and can be used by the commissioner of commerce only for
the purpose of verifying that the persons claiming the refunds are the owners.

new text begin (b) The commissioner may disclose a return or return information to the commissioner
of commerce under section 45.0135 to the extent necessary to investigate employer
compliance with section 176.181.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2022, section 270B.14, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Disclosure to the attorney general. new text end

new text begin The commissioner may disclose a return
or return information to the attorney general for the purpose of determining whether a
business is an employer and to the extent necessary to enforce section 177.45 or 181.1721.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2022, section 326B.081, subdivision 3, is amended to read:

Subd. 3.

Applicable law.

"Applicable law" means the provisions of sections new text begin 181.165,
181.722, new text end 181.723, 325E.66, 327.31 to 327.36, this chapter, and chapter 341, and all rules,
orders, stipulation agreements, settlements, compliance agreements, licenses, registrations,
certificates, and permits adopted, issued, or enforced by the department under sections
new text begin 181.165, 181.722, new text end 181.723, 325E.66, 327.31 to 327.36, this chapter, or chapter 341.

Sec. 14.

Minnesota Statutes 2022, section 326B.081, subdivision 6, is amended to read:

Subd. 6.

Licensing order.

"Licensing order" means an order issued under section
326B.082, subdivision 12 deleted text begin , paragraph (a) deleted text end .

Sec. 15.

Minnesota Statutes 2022, section 326B.081, subdivision 8, is amended to read:

Subd. 8.

Stop new text begin work new text end order.

"Stop new text begin work new text end order" means an order issued under section
326B.082, subdivision 10.

Sec. 16.

Minnesota Statutes 2022, section 326B.082, subdivision 1, is amended to read:

Subdivision 1.

Remedies available.

The commissioner may enforce all applicable law
under this section. The commissioner may use any enforcement provision in this section,
including the assessment of monetary penalties, against a person required to have a license,
registration, certificate, or permit under the applicable law based on conduct that would
provide grounds for action against a licensee, registrant, certificate holder, or permit holder
under the applicable law. The use of an enforcement provision in this section shall not
preclude the use of any other enforcement provision in this section or otherwise provided
by law. new text begin The commissioner's investigation and enforcement authority under this section may
be used by the commissioner in addition to or as an alternative to any other investigation
and enforcement authority provided by law.
new text end

Sec. 17.

Minnesota Statutes 2022, section 326B.082, subdivision 2, is amended to read:

Subd. 2.

Access to information and property; subpoenas.

(a) In order to carry out the
purposes of the applicable law, the commissioner may:

(1) administer oaths and affirmations, certify official acts, interview, question, take oral
or written statements, new text begin demand data and information, new text end and take depositions;

(2) request, examine, take possession of, test, sample, measure, photograph, record, and
copy any documents, apparatus, devices, equipment, or materials;

(3) at a time and place indicated by the commissioner, request persons to appear before
the commissioner to give testimony new text begin , provide data and information, new text end and produce documents,
apparatus, devices, equipment, or materials;

(4) issue subpoenas to compel persons to deleted text begin appear before the commissioner to deleted text end give
testimony new text begin , provide data and information, new text end and new text begin to new text end produce documents, apparatus, devices,
equipment, or materials; and

(5) with or without notice, enter without delay deleted text begin upon deleted text end new text begin and access all areas of new text end any property,
public or private, for the purpose of taking any action authorized under this subdivision or
the applicable law, including deleted text begin obtaining deleted text end new text begin to request, examine, take possession of, test, sample,
measure, photograph, record, and copy any data, new text end information, deleted text begin remedying deleted text end new text begin documents,
apparatus, devices, equipment, or materials; to interview, question, or take oral or written
statements; to remedy new text end violations deleted text begin , deleted text end new text begin ; new text end or deleted text begin conducting deleted text end new text begin to conduct new text end surveys, inspections, or
investigations.

(b) Persons requested by the commissioner to give testimony new text begin , provide data and
information, new text end or produce documents, apparatus, devices, equipment, or materials shall respond
within the time and in the manner specified by the commissioner. If no time to respond is
specified in the request, then a response shall be submitted within 30 days of the
commissioner's service of the request.

(c) Upon the refusal or anticipated refusal of a property owner, lessee, property owner's
representative, or lessee's representative to permit the commissioner's entry deleted text begin onto deleted text end new text begin and access
to all areas of any new text end property as provided in paragraph (a), the commissioner may apply for
an administrative inspection order in the Ramsey County District Court or, at the
commissioner's discretion, in the district court in the county in which the property is located.
The commissioner may anticipate that a property owner or lessee will refuse entry new text begin and
access to all areas of a property new text end if the property owner, lessee, property owner's representative,
or lessee's representative has refused to permit entry new text begin or access to all areas of a property new text end on
a prior occasion or has informed the commissioner that entry new text begin or access to areas of a property
new text end will be refused. Upon showing of administrative probable cause by the commissioner, the
district court shall issue an administrative inspection order that compels the property owner
or lessee to permit the commissioner to enter new text begin and be allowed access to all areas of new text end the
property for the purposes specified in paragraph (a).

(d) Upon the application of the commissioner, a district court shall treat the failure of
any person to obey a subpoena lawfully issued by the commissioner under this subdivision
as a contempt of court.

Sec. 18.

Minnesota Statutes 2022, section 326B.082, subdivision 4, is amended to read:

Subd. 4.

Fax new text begin or email new text end transmission.

When this section or section 326B.083 permits a
request for reconsideration or request for hearing to be served by fax on the commissioner,
new text begin or when the commissioner instructs that a request for reconsideration or request for hearing
be served by email on the commissioner, new text end the fax new text begin or email new text end shall not exceed 15 new text begin printed new text end pages
in length. The request shall be considered timely served if the fax new text begin or email new text end is received by
the commissioner, at the fax number new text begin or email address new text end identified by the commissioner in the
order or notice of violation, no later than 4:30 p.m. central time on the last day permitted
for faxing new text begin or emailing new text end the request. Where the quality or authenticity of the faxed new text begin or emailed new text end
request is at issue, the commissioner may require the original request to be filed. Where the
commissioner has not identified quality or authenticity of the faxed new text begin or emailed new text end request as
an issue and the request has been faxed new text begin or emailed new text end in accordance with this subdivision, the
person faxing new text begin or emailing new text end the request does not need to file the original request with the
commissioner.

Sec. 19.

Minnesota Statutes 2022, section 326B.082, subdivision 6, is amended to read:

Subd. 6.

Notices of violation.

(a) The commissioner may issue a notice of violation to
any person who the commissioner determines has committed a violation of the applicable
law. The notice of violation must state a summary of the facts that constitute the violation
and the applicable law violated. The notice of violation may require the person to correct
the violation. If correction is required, the notice of violation must state the deadline by
which the violation must be corrected.

new text begin (b) In addition to any person, a notice of violation may be issued to any individual
identified in section 181.723, subdivision 7, paragraph (d). A notice of violation is effective
against any successor person as defined in section 181.723, subdivision 7, paragraph (e).
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The commissioner shall issue the notice of violation by:

(1) serving the notice of violation on the property owner or on the person who committed
the violation; or

(2) posting the notice of violation at the location where the violation occurred.

deleted text begin (c) deleted text end new text begin (d) new text end If the person to whom the commissioner has issued the notice of violation believes
the notice was issued in error, then the person may request reconsideration of the parts of
the notice that the person believes are in error. The request for reconsideration must be in
writing and must be served on, faxed, or emailed to the commissioner at the address, fax
number, or email address specified in the notice of violation by the tenth day after the
commissioner issued the notice of violation. The date on which a request for reconsideration
is served by mail shall be the postmark date on the envelope in which the request for
reconsideration is mailed. If the person does not serve, fax, or email a written request for
reconsideration or if the person's written request for reconsideration is not served on or
faxed to the commissioner by the tenth day after the commissioner issued the notice of
violation, the notice of violation shall become a final order of the commissioner and will
not be subject to review by any court or agency. The request for reconsideration must:

(1) specify which parts of the notice of violation the person believes are in error;

(2) explain why the person believes the parts are in error; and

(3) provide documentation to support the request for reconsideration.

The commissioner shall respond in writing to requests for reconsideration made under
this paragraph within 15 days after receiving the request. A request for reconsideration does
not stay a requirement to correct a violation as set forth in the notice of violation. After
reviewing the request for reconsideration, the commissioner may affirm, modify, or rescind
the notice of violation. The commissioner's response to a request for reconsideration is final
and shall not be reviewed by any court or agency.

Sec. 20.

Minnesota Statutes 2022, section 326B.082, subdivision 7, is amended to read:

Subd. 7.

Administrative orders; correction; assessment of monetary penalties.

(a)
The commissioner may issue an administrative order to any person who the commissioner
determines has committed a violation of the applicable law. The commissioner shall issue
the administrative order by serving the administrative order on the person. The administrative
order may require the person to correct the violation, may require the person to cease and
desist from committing the violation, and may assess monetary new text begin damages and new text end penalties. The
commissioner shall follow the procedures in section 326B.083 when issuing administrative
orders. Except as provided in paragraph (b), the commissioner may issue to each person a
monetary penalty of up to $10,000 for each violation of applicable law committed by the
person. The commissioner may order that part or all of the monetary penalty will be forgiven
if the person to whom the order is issued demonstrates to the commissioner by the 31st day
after the order is issued that the person has corrected the violation or has developed a
correction plan acceptable to the commissioner.

(b) The commissioner may issue an administrative order for failure to correct a violation
by the deadline stated in a new text begin final notice of violation issued under subdivision 6 or a new text end final
administrative order issued under paragraph (a). Each day after the deadline during which
the violation remains uncorrected is a separate violation for purposes of calculating the
maximum monetary penalty amount.

(c) Upon the application of the commissioner, a district court shall find the failure of
any person to correct a violation as required by a new text begin final notice of violation issued under
subdivision 6 or a new text end final administrative order issued by the commissioner under this
subdivision as a contempt of court.

new text begin (d) In addition to any person, an administrative order may be issued to any individual
identified in section 181.723, subdivision 7, paragraph (d). An administrative order shall
be effective against any successor person as defined in section 181.723, subdivision 7,
paragraph (e).
new text end

Sec. 21.

Minnesota Statutes 2022, section 326B.082, subdivision 10, is amended to read:

Subd. 10.

Stop new text begin work new text end orders.

(a) deleted text begin If the commissioner determines based on an inspection
or investigation that a person has violated or is about to violate the applicable law, deleted text end The
commissioner may issue deleted text begin to the person deleted text end a stop new text begin work new text end order requiring deleted text begin the person to cease and
desist from committing the violation deleted text end new text begin cessation of all business operations of a person at one
or more of the person's workplaces and places of business or across all of the person's
workplaces and places of business new text end . new text begin A stop work order may be issued to any person who the
commissioner has determined, based on an inspection or investigation, has violated the
applicable law, has engaged in any of the activities under subdivision 11, paragraph (b), or
section 326B.701, subdivision 5, or has failed to comply with a final notice, final
administrative order, or final licensing order issued by the commissioner under this section
or a final order to comply issued by the commissioner under section 177.27.
new text end

new text begin (b) The stop work order is effective upon its issuance under paragraph (e). The order
remains in effect until the commissioner issues an order lifting the stop work order upon
finding that the person has come into compliance with the applicable law, has come into
compliance with a final order or notice of violation issued by the commissioner, has ceased
and desisted from engaging in any of the activities under subdivision 11, paragraph (b), or
section 326B.701, subdivision 5, and has paid in any remedies, damages, penalties, and
other monetary sanctions, including wages owed to employees under paragraph (j), to the
satisfaction of the commissioner, or if the commissioner or appellate court modifies or
vacates the order.
new text end

new text begin (c) In addition to any person, a stop work order may be issued to any individual identified
in section 181.723, subdivision 7, paragraph (d). The stop work order is effective against
any successor person as defined in section 181.723, subdivision 7, paragraph (e).
new text end

deleted text begin (b) deleted text end new text begin (d) new text end If the commissioner determines that a condition exists on real property that
deleted text begin violates the applicable law deleted text end new text begin is the basis for issuing a stop work order new text end , the commissioner may
new text begin also new text end issue a stop new text begin work new text end order to the owner or lessee of the real property deleted text begin to cease and desist
from committing the violation and to correct the condition that is in violation deleted text end .

deleted text begin (c) deleted text end new text begin (e) new text end The commissioner shall issue the stop work order by:

(1) serving the order on the person deleted text begin who has committed or is about to commit the violation deleted text end ;

(2) posting the order at the location where the violation was committed deleted text begin or is about to be
committed deleted text end or at the location where the deleted text begin violating deleted text end condition exists new text begin that is the basis for issuing
the stop work order new text end ; or

(3) serving the order on any owner or lessee of the real property where the deleted text begin violating
condition exists deleted text end new text begin violations or conditions exist new text end .

deleted text begin (d) deleted text end new text begin (f) new text end A stop new text begin work new text end order shall:

(1) describe the act, conduct, or practice committed deleted text begin or about to be committed, deleted text end or the
condition, and include a reference to the applicable law deleted text begin that the act, conduct, practice, or
condition violates or would violate deleted text end new text begin , the final order or final notice of violation, the provisions
in subdivision 11, paragraph (b); the provisions in section 326B.701, subdivision 5; or
liability under section 181.165, as applicable new text end ; and

(2) provide notice that any person aggrieved by the stop new text begin work new text end order may request a hearing
as provided in paragraph deleted text begin (e) deleted text end new text begin (g) new text end .

deleted text begin (e) deleted text end new text begin (g) new text end Within 30 days after the commissioner issues a stop new text begin work new text end order, any person
aggrieved by the order may request an expedited hearing to review the commissioner's
action. The request for hearing must be made in writing and must be served on new text begin , emailed, new text end
or faxed to the commissioner at the address new text begin , email address, new text end or fax number specified in the
order. If the person does not request a hearing or if the person's written request for hearing
is not served on new text begin , emailed, new text end or faxed to the commissioner on or before the 30th day after the
commissioner issued the stop new text begin work new text end order, the order will become a final order of the
commissioner and will not be subject to review by any court or agency. The date on which
a request for hearing is served by mail is the postmark date on the envelope in which the
request for hearing is mailed. The hearing request must specifically state the reasons for
seeking review of the order. The person who requested the hearing and the commissioner
are the parties to the expedited hearing. The hearing shall be commenced within ten days
after the commissioner receives the request for hearing. The hearing shall be conducted
under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this subdivision.
The administrative law judge shall issue a report containing findings of fact, conclusions
of law, and a recommended order within ten days after the completion of the hearing, the
receipt of late-filed exhibits, or the submission of written arguments, whichever is later.
Any party aggrieved by the administrative law judge's report shall have five days after the
date of the administrative law judge's report to submit written exceptions and argument to
the commissioner that the commissioner shall consider and enter in the record. Within 15
days after receiving the administrative law judge's report, the commissioner shall issue an
order vacating, modifying, or making permanent the stop new text begin work new text end order. The commissioner
and the person requesting the hearing may by agreement lengthen any time periods described
in this paragraph. The Office of Administrative Hearings may, in consultation with the
agency, adopt rules specifically applicable to cases under this subdivision.

deleted text begin (f) deleted text end new text begin (h) new text end A stop new text begin work new text end order issued under this subdivision deleted text begin shall be deleted text end new text begin is new text end in effect until it is
new text begin lifted by the commissioner under paragraph (b) or is new text end modified or vacated by the commissioner
or an appellate court new text begin under paragraph (b) new text end . The administrative hearing provided by this
subdivision and any appellate judicial review as provided in chapter 14 shall constitute the
exclusive remedy for any person aggrieved by a stop order.

new text begin (i) The commissioner may assess a civil penalty of $5,000 per day against a person for
each day the person conducts business operations that are in violation of a stop work order
issued under this section.
new text end

new text begin (j) Once a stop work order becomes final, any of the person's employees affected by a
stop work order issued pursuant to this subdivision shall be entitled to average daily earnings
from the person for up to the first ten days of work lost by the employee because of the
issuance of a stop work order. Lifting of a stop work order may be conditioned on payment
of wages to employees. The commissioner may issue an order to comply under section
177.27 to obtain payment from persons liable for the payment of wages owed to the
employees under this section.
new text end

deleted text begin (g) deleted text end new text begin (k) new text end Upon the application of the commissioner, a district court shall find the failure
of any person to comply with a final stop new text begin work new text end order lawfully issued by the commissioner
under this subdivision as a contempt of court.

new text begin (l) Notwithstanding section 13.39, the data in a stop work order issued under this
subdivision are classified as public data after the commissioner has issued the order.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, for contracts entered
into on or after that date and for all building and construction or improvement services
provided or performed on or after January 1, 2025.
new text end

Sec. 22.

Minnesota Statutes 2022, section 326B.082, subdivision 11, is amended to read:

Subd. 11.

Licensing orders; grounds; reapplication.

(a) The commissioner may deny
an application for a permit, license, registration, or certificate if the applicant does not meet
or fails to maintain the minimum qualifications for holding the permit, license, registration,
or certificate, or has any unresolved violations deleted text begin or deleted text end new text begin , new text end unpaid fees new text begin , new text end or monetary new text begin damages or
new text end penalties related to the activity for which the permit, license, registration, or certificate has
been applied for or was issued.

(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's
permit, license, registration, or certificate, or censure the person holding or acting as
qualifying person for the permit, license, registration, or certificate, if the commissioner
finds that the person:

(1) committed one or more violations of the applicable law;

new text begin (2) committed one or more violations of chapter 176, 177, 181, 181A, 182, 268, 270C,
or 363A;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end submitted false or misleading information to deleted text begin the deleted text end new text begin any new text end state new text begin agency new text end in connection
with activities for which the permit, license, registration, or certificate was issued, or in
connection with the application for the permit, license, registration, or certificate;

deleted text begin (3) deleted text end new text begin (4) new text end allowed the alteration or use of the person's own permit, license, registration, or
certificate by another person;

deleted text begin (4) deleted text end new text begin (5) new text end within the previous five years, was convicted of a crime in connection with
activities for which the permit, license, registration, or certificate was issued;

deleted text begin (5) deleted text end new text begin (6) new text end violated: (i) a final administrative order issued under subdivision 7, (ii) a final
stop new text begin work new text end order issued under subdivision 10, (iii) injunctive relief issued under subdivision
9, or (iv) a consent order new text begin , order to comply, new text end or new text begin other new text end final order deleted text begin of deleted text end new text begin issued by new text end the commissioner new text begin
or the commissioner of human rights, employment and economic development, or revenue new text end ;

deleted text begin (6) deleted text end new text begin (7) delayed, obstructed, or otherwise new text end failed to cooperate with a commissioner's
new text begin investigation, including a new text end request to give testimony, new text begin to provide data and information, new text end to
produce documents, things, apparatus, devices, equipment, or materials, or to new text begin enter and
new text end access new text begin all areas of any new text end property deleted text begin under subdivision 2 deleted text end ;

deleted text begin (7) deleted text end new text begin (8) new text end retaliated in any manner against any employee or person who new text begin makes a complaint,
new text end is questioned by, cooperates with, or provides information to the commissioner deleted text begin or an
employee or agent authorized by the commissioner who seeks access to property or things
under subdivision 2 deleted text end ;

deleted text begin (8) deleted text end new text begin (9) new text end engaged in any fraudulent, deceptive, or dishonest act or practice; or

deleted text begin (9) deleted text end new text begin (10) new text end performed work in connection with the permit, license, registration, or certificate
or conducted the person's affairs in a manner that demonstrates incompetence,
untrustworthiness, or financial irresponsibility.

new text begin (c) In addition to any person, a licensing order may be issued to any individual identified
in section 181.723, subdivision 7, paragraph (d). A licensing order is effective against any
successor person as defined in section 181.723, subdivision 7, paragraph (e).
new text end

deleted text begin (c) deleted text end new text begin (d) new text end If the commissioner revokes or denies a person's permit, license, registration, or
certificate under paragraph (b), the person is prohibited from reapplying for the same type
of permit, license, registration, or certificate for at least two years after the effective date
of the revocation or denial. The commissioner may, as a condition of reapplication, require
the person to obtain a bond or comply with additional reasonable conditions the commissioner
considers necessary to protect the public new text begin , including but not limited to demonstration of
current and ongoing compliance with the laws the violation of which were the basis for
revoking or denying the person's permit, license, registration, or certificate under paragraph
(b) or that the person has ceased and desisted in engaging in activities under paragraph (b)
that were the basis for revoking or denying the person's permit, license, registration, or
certificate under paragraph (b) new text end .

deleted text begin (d) deleted text end new text begin (e) new text end If a permit, license, registration, or certificate expires, or is surrendered, withdrawn,
or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding
under this subdivision within two years after the permit, license, registration, or certificate
was last effective and enter a revocation or suspension order as of the last date on which
the permit, license, registration, or certificate was in effect.

Sec. 23.

Minnesota Statutes 2022, section 326B.082, subdivision 13, is amended to read:

Subd. 13.

Summary suspension.

In any case where the commissioner has issued an
order to revoke, suspend, or deny a license, registration, certificate, or permit under
subdivisions 11, paragraph (b), and 12, the commissioner may summarily suspend the
person's permit, license, registration, or certificate before the order becomes final. The
commissioner shall issue a summary suspension order when the safety of life or property
is threatened or to prevent the commission of fraudulent, deceptive, untrustworthy, or
dishonest acts against the public new text begin , including but not limited to violations of section 181.723,
subdivision 7 new text end . The summary suspension shall not affect the deadline for submitting a request
for hearing under subdivision 12. If the commissioner summarily suspends a person's permit,
license, registration, or certificate, a timely request for hearing submitted under subdivision
12 shall also be considered a timely request for hearing on continuation of the summary
suspension. If the commissioner summarily suspends a person's permit, license, registration,
or certificate under this subdivision and the person submits a timely request for a hearing,
then a hearing on continuation of the summary suspension must be held within ten days
after the commissioner receives the request for hearing unless the parties agree to a later
date.

Sec. 24.

Minnesota Statutes 2022, section 326B.082, is amended by adding a subdivision
to read:

new text begin Subd. 16a. new text end

new text begin Additional penalties and damages. new text end

new text begin Any person who delays, obstructs, or
otherwise fails to cooperate with the commissioner's investigation may be issued a penalty
of $1,000. Each day of delay, obstruction, or failure to cooperate shall constitute a separate
violation.
new text end

Sec. 25.

Minnesota Statutes 2022, section 326B.701, is amended to read:

326B.701 CONSTRUCTION CONTRACTOR REGISTRATION.

Subdivision 1.

Definitions.

The following definitions apply to this section:

new text begin (a) "Building construction or improvement services" means public or private sector
commercial or residential building construction or improvement services.
new text end

deleted text begin (a) deleted text end new text begin (b) new text end "Business entity" means a person deleted text begin other than an individual or a sole proprietor deleted text end new text begin as
that term is defined in paragraph (h), except the term does not include an individual new text end .

new text begin (c) "Commissioner" means the commissioner of labor and industry or a duly designated
representative of the commissioner who is either an employee of the Department of Labor
and Industry or person working under contract with the Department of Labor and Industry.
new text end

new text begin (d) "Day" means calendar day unless otherwise provided.
new text end

new text begin (e) "Department" means the Department of Labor and Industry.
new text end

deleted text begin (b) deleted text end new text begin (f) new text end "Document" or "documents" includes papers; books; records; memoranda; data;
contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings;
records; accounts; files; statements; letters; emails; invoices; bills; notes; and calendars
maintained in any form or manner.

new text begin (g) "Individual" means a human being.
new text end

new text begin (h) "Person" means any individual, sole proprietor, limited liability company, limited
liability partnership, corporation, partnership, incorporated or unincorporated association,
joint stock company, or any other legal or commercial entity.
new text end

Subd. 2.

Applicability; registration requirement.

deleted text begin (a) Persons who perform public or
private sector commercial or residential building construction or improvement services as
described in subdivision 2 must register with the commissioner as provided in this section.
The purpose of registration is to assist the Department of Labor and Industry, the Department
of Employment and Economic Development, and the Department of Revenue to enforce
laws related to misclassification of employees.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end Except as provided in paragraph deleted text begin (c) deleted text end new text begin (b) new text end , any person who new text begin provides or new text end performs
new text begin building new text end construction new text begin or improvement new text end services in the state deleted text begin on or after September 15, 2012, deleted text end new text begin
of Minnesota new text end must register with the commissioner as provided in this section before new text begin providing
or new text end performing new text begin building new text end construction new text begin or improvement new text end services deleted text begin for another person deleted text end . The
requirements for registration under this section are not a substitute for, and do not relieve
a person from complying with, any other law requiring that the person be licensed, registered,
or certified.

deleted text begin (c) deleted text end new text begin (b) new text end The registration requirements in this section do not apply to:

(1) a person who, at the time the person is new text begin providing or new text end performing the new text begin building new text end
construction new text begin or improvement new text end services, holds a current license, certificate, or registration
under chapter 299M or 326B;

deleted text begin (2) a person who holds a current independent contractor exemption certificate issued
under this section that is in effect on September 15, 2012, except that the person must register
under this section no later than the date the exemption certificate expires, is revoked, or is
canceled;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end a person who has given a bond to the state under section 326B.197 or 326B.46;

deleted text begin (4) deleted text end new text begin (3) new text end an employee of the person new text begin providing or new text end performing the new text begin building new text end construction new text begin or
improvement new text end services deleted text begin , if the person was in compliance with laws related to employment of
the individual at the time the construction services were performed deleted text end ;

deleted text begin (5) deleted text end new text begin (4) new text end an architect or professional engineer engaging in professional practice as defined
in section 326.02, subdivisions 2 and 3;

deleted text begin (6) deleted text end new text begin (5) new text end a school district or technical college governed under chapter 136F;

deleted text begin (7) deleted text end new text begin (6) new text end a person providing new text begin or performing building new text end construction new text begin or improvement new text end services
on a volunteer basis, including but not limited to Habitat for Humanity and Builders Outreach
Foundation, and their individual volunteers when engaged in activities on their behalf; or

deleted text begin (8) deleted text end new text begin (7) new text end a person exempt from licensing under section 326B.805, subdivision 6, clause
deleted text begin (5) deleted text end new text begin (4) new text end .

Subd. 3.

Registration application.

(a) Persons required to register under this section
must submit electronically, in the manner prescribed by the commissioner, a complete
application according to deleted text begin paragraphs (b) to (d) deleted text end new text begin this subdivision new text end .

(b) A complete application must include all of the following information new text begin and
documentation new text end about deleted text begin any individual who is registering as an individual or a sole proprietor,
or who owns 25 percent or more of a business entity being registered deleted text end new text begin the person who is
applying for a registration new text end :

(1) the deleted text begin individual's full deleted text end new text begin person's new text end legal name deleted text begin and title at the applicant's business deleted text end ;

new text begin (2) the person's assumed names filed with the secretary of state, if applicable;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the deleted text begin individual's business address and deleted text end new text begin person's new text end telephone number;

deleted text begin (3) the percentage of the applicant's business owned by the individual; and
deleted text end

deleted text begin (4) the individual's Social Security number.
deleted text end

deleted text begin (c) A complete application must also include the following information:
deleted text end

deleted text begin (1) the applicant's legal name; assumed name filed with the secretary of state, if any;
designated business address; physical address; telephone number; and email address;
deleted text end

deleted text begin (2) the applicant's Minnesota tax identification number, if one is required or has been
issued;
deleted text end

deleted text begin (3) the applicant's federal employer identification number, if one is required or has been
issued;
deleted text end

deleted text begin (4) evidence of the active status of the applicant's business filings with the secretary of
state, if one is required or has been issued;
deleted text end

deleted text begin (5) whether the applicant has any employees at the time the application is filed;
deleted text end

deleted text begin (6) the names of all other persons with an ownership interest in the business entity who
are not identified in paragraph (b), and the percentage of the interest owned by each person,
except that the names of shareholders with less than ten percent ownership in a publicly
traded corporation need not be provided;
deleted text end

deleted text begin (7) information documenting compliance with workers' compensation and unemployment
insurance laws;
deleted text end

new text begin (4) the person's email address;
new text end

new text begin (5) the person's business address;
new text end

new text begin (6) the person's physical address, if different from the business address;
new text end

new text begin (7) the legal name, telephone number, and email address of the person's registered agent,
if applicable, and the registered agent's business address and physical address, if different
from the business address;
new text end

new text begin (8) the jurisdiction in which the person is organized, if that jurisdiction is not in
Minnesota, as applicable;
new text end

new text begin (9) the legal name of the person in the jurisdiction in which it is organized, if the legal
name is different than the legal name provided in clause (1), as applicable;
new text end

new text begin (10) all of the following identification numbers, if all of these identification numbers
have been issued to the person. A complete application must include at least one of the
following identification numbers:
new text end

new text begin (i) the person's Social Security number;
new text end

new text begin (ii) the person's Minnesota tax identification number; or
new text end

new text begin (iii) the person's federal employer identification number;
new text end

new text begin (11) evidence of the active status of the person's business filings with the secretary of
state, if applicable;
new text end

new text begin (12) whether the person has any employees at the time the application is filed, and if so,
how many employees the person employs;
new text end

new text begin (13) the legal names of all persons with an ownership interest in the business entity, if
applicable, and the percentage of the interest owned by each person, except that the names
of shareholders with less than ten percent ownership in a publicly traded corporation need
not be provided;
new text end

new text begin (14) information documenting the person's compliance with workers' compensation and
unemployment insurance laws for the person's employees, if applicable;
new text end

new text begin (15) whether the person or any persons with an ownership interest in the business entity
as disclosed under clause (13) have been issued a notice of violation, administrative order,
licensing order, or order to comply by the Department of Labor and Industry in the last ten
years;
new text end

deleted text begin (8) deleted text end new text begin (16) new text end a certification that the deleted text begin person deleted text end new text begin individual new text end signing the application has: reviewed
it; deleted text begin determined deleted text end new text begin asserts new text end that the information new text begin and documentation new text end provided is true and accurate;
and deleted text begin determined deleted text end that the deleted text begin person signing deleted text end new text begin individual new text end is authorized to sign and file the application
as an agent new text begin or authorized representative new text end of the deleted text begin applicant deleted text end new text begin person new text end . The name of the deleted text begin person deleted text end new text begin
individual new text end signing, entered on an electronic application, shall constitute a valid signature
of the agent new text begin or authorized representative new text end on behalf of the deleted text begin applicant deleted text end new text begin person new text end ; and

deleted text begin (9) deleted text end new text begin (17) new text end a signed authorization for the Department of Labor and Industry to verify the
information new text begin and documentation new text end provided on or with the application.

deleted text begin (d) deleted text end new text begin (c) new text end A registered person must notify the commissioner within 15 days after there is a
change in any of the information on the application as approved. This notification must be
provided electronically in the manner prescribed by the commissioner. However, if the
deleted text begin business entity deleted text end structure or legal form of the business entity has changed, the person must
submit a new registration application deleted text begin and registration fee, if any, for the new business entity deleted text end .

deleted text begin (e) The registered deleted text end new text begin (d) A new text end person must deleted text begin remain registered deleted text end new text begin maintain a current and up-to-date
registration new text end while providing new text begin or performing building new text end construction new text begin or improvement new text end services
deleted text begin for another person deleted text end . The provisions of sections 326B.091, 326B.094, 326B.095, and 326B.097
apply to this section. deleted text begin A person with an expired registration shall not provide construction
services for another person if registration is required under this section. deleted text end Registration
application and expiration time frames are as follows:

deleted text begin (1) all registrations issued on or before December 31, 2015, expire on December 31,
2015;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end all registrations issued after December 31, 2015, expire on the following December
31 of each odd-numbered year; and

deleted text begin (3) deleted text end new text begin (2) new text end a person may submit a deleted text begin registration or deleted text end renewal application starting October 1 of
the year the registration expires. If a renewal application is submitted later than December
1 of the expiration year, new text begin the new text end registration may expire before the department has issued or
denied the deleted text begin registration deleted text end new text begin renewal new text end .

Subd. 4.

Website.

(a) The commissioner shall develop and maintain a website on which
deleted text begin applicants for registration deleted text end new text begin persons new text end can submit a registration new text begin or renewal new text end application. The
website shall be designed to receive and process deleted text begin registration deleted text end applications and promptly
issue registration certificates electronically to successful applicants.

(b) The commissioner shall maintain deleted text begin the certificates of registration on the department's
official public website, which shall include deleted text end the following information new text begin on the department's
official public website new text end :

(1) the registered person's legal deleted text begin business deleted text end name, including any assumed name deleted text begin , as deleted text end filed
with the secretary of state;

new text begin (2) the legal names of the persons with an ownership interest in the business entity;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the new text begin registered new text end person's business address deleted text begin designated deleted text end new text begin and physical address, if
different from the business address, provided new text end on the application; and

deleted text begin (3) deleted text end new text begin (4) new text end the effective date of the registration and the expiration date.

Subd. 5.

Prohibited activities related to registration.

(a) The prohibited activities in
this subdivision are in addition to those prohibited in deleted text begin sections 326B.081 to 326B.085 deleted text end new text begin section
326B.082, subdivision 11 new text end .

(b) A person who provides new text begin or performs building new text end construction new text begin or improvement new text end services
deleted text begin in the course of the person's trade, business, occupation, or profession deleted text end shall not:

(1) deleted text begin contract with deleted text end new text begin provide new text end or perform new text begin building new text end construction new text begin or improvement new text end services deleted text begin for
another person deleted text end without deleted text begin first deleted text end being registered new text begin , new text end if required deleted text begin by deleted text end new text begin to be registered under new text end this
section;

new text begin (2) require an individual who is the person's employee to register; or
new text end

deleted text begin (2) contract with or pay deleted text end new text begin (3) engage new text end another person to new text begin provide or new text end perform new text begin building
new text end construction new text begin or improvement new text end services if the other person is new text begin required to be registered under
this section and is new text end not registered deleted text begin if required by subdivision 2. All payments to an unregistered
person for construction services on a single project site shall be considered a single violation deleted text end .
It is not a violation of this clause:

(i) for a person to deleted text begin contract with or pay deleted text end new text begin have engaged new text end an unregistered person if the
unregistered person deleted text begin was registered at the time the contract for construction services was
entered into deleted text end new text begin held a current registration on the date they began providing or performing the
building construction or improvement services new text end ; or

(ii) for a homeowner or business to deleted text begin contract with or pay deleted text end new text begin engage new text end an unregistered person
if the homeowner or business is not in the trade, business, profession, or occupation of
performing building construction or improvement services deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (3) be penalized for violations of this subdivision that are committed by another person.
This clause applies only to violations of this paragraph.
deleted text end

new text begin (c) Each day a person who is required to be registered provides or performs building
construction or improvement services while unregistered shall be considered a separate
violation.
new text end

Subd. 6.

new text begin Investigation and new text end enforcement; remedies; and penalties.

deleted text begin (a) Notwithstanding
the maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum
penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if
the person registers within 30 days of the date of the penalty order.
deleted text end

deleted text begin (b) The penalty for contracting with or paying an unregistered person to perform
construction services in violation of subdivision 5, paragraph (b), clause (2), shall be as
provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive
the penalty for the first violation.
deleted text end

new text begin The commissioner may investigate and enforce this section under the authority in chapters
177 and 326B.
new text end

deleted text begin Subd. 7. deleted text end

deleted text begin Notice requirement. deleted text end

deleted text begin Notice of a penalty order for failure to register must
include a statement that the penalty shall be forgiven if the person registers within 30 days
of the date of the penalty order.
deleted text end

Subd. 8.

Data classified.

Data in applications and any required documentation submitted
to the commissioner under this section are private data on individuals or nonpublic data as
defined in section 13.02 deleted text begin . Data in registration certificates issued by the commissioner are
public data; deleted text end except deleted text begin that deleted text end new text begin for the new text end registration information published on the department's website
deleted text begin may be accessed for registration verification purposes only deleted text end . Data that document a new text begin suspension,
new text end revocation new text begin , new text end or cancellation of a deleted text begin certificate deleted text end new text begin registration new text end are public data. deleted text begin Upon request of deleted text end new text begin
Notwithstanding its classification as private data on individuals or nonpublic data, data in
applications and any required documentation submitted to the commissioner under this
section may be used by the commissioner to investigate and take enforcement action related
to laws for which the commissioner has enforcement responsibility and the commissioner
may share data and documentation with new text end the Department of Revenue new text begin , the Department of
Commerce, the Department of Human Rights, new text end or the Department of Employment and
Economic Development deleted text begin , deleted text end new text begin . new text end The commissioner may release to the deleted text begin requesting department deleted text end new text begin
departments new text end data classified as private or nonpublic under this subdivision or investigative
data that are not public under section 13.39 that relate to deleted text begin the issuance or denial of applications
or revocations of certificates deleted text end new text begin prohibited activities under this section and section 181.723 new text end .