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SF 1004

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:17am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to labor and industry; modifying construction codes and licensing;
requiring rulemaking; amending Minnesota Statutes 2008, sections 326B.082,
subdivision 12; 326B.084; 326B.121, by adding a subdivision; 326B.43,
subdivision 1; 326B.435, subdivision 2; 326B.475, subdivision 6; 326B.52;
326B.53; 326B.55; 326B.57; 326B.58; 326B.59; 326B.801; 326B.84; 326B.921,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter
326B; repealing Minnesota Statutes 2008, section 326B.43, subdivision 5.

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

Section 1.

Minnesota Statutes 2008, section 326B.082, subdivision 12, is amended to
read:


Subd. 12.

Issuance of licensing orders; hearings related to licensing orders.

(a) If the commissioner determines that a permit, license, registration, or certificate
should be conditioned, limited, suspended, revoked, or denied under subdivision 11,
or that the permit holder, licensee, registrant, or certificate holder should be censured
under subdivision 11, then the commissioner shall issue to the person an order denying,
conditioning, limiting, suspending, or revoking the person's permit, license, registration,
or certificate, or censuring the permit holder, licensee, registrant, or certificate holder.

(b) Any order issued under paragraph (a) may include an assessment of monetary
penalties and may require the person to cease and desist from committing the violation
or committing the act, conduct, or practice set out in subdivision 11, paragraph (b). The
monetary penalty may be up to $10,000 for each violation or act, conduct, or practice
committed by the person. The procedures in section 326B.083 must be followed when
issuing orders under paragraph (a).

(c) The permit holder, licensee, registrant, certificate holder, or applicant to whom
the commissioner issues an order under paragraph (a) shall have 30 days after deleted text beginservicedeleted text endnew text begin
issuance
new text end of the order to request a hearing. The request for hearing must be in writing and
must be served on or faxed to the commissioner at the address or fax number specified
in the order by the 30th day after deleted text beginservicedeleted text endnew text begin issuancenew text end of the order. If the person does not
request a hearing or if the person's written request for hearing is not served on or faxed
to the commissioner by the 30th day after deleted text beginservicedeleted text endnew text begin issuancenew text end of the order, the order shall
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 shall be the postmark
date on the envelope in which the request for hearing is mailed. If the person submits to
the commissioner a timely request for hearing, the order is stayed unless the commissioner
summarily suspends the license, registration, certificate, or permit under subdivision 13,
and a contested case hearing shall be held in accordance with chapter 14.

Sec. 2.

Minnesota Statutes 2008, section 326B.084, is amended to read:


326B.084 FALSE INFORMATION.

new text begin Subdivision 1. new text end

new text begin False information. new text end

A person subject to any of the requirements in
the applicable law may not make a false material statement, representation, or certification
in; omit material information from; or alter, conceal, or fail to file or maintain a notice,
application, record, report, plan, or other document required under the applicable law.

new text begin Subd. 2. new text end

new text begin Unlicensed advertising. new text end

new text begin No person shall offer to perform services for
which a license issued by the commissioner is required unless the person holds an active
license to perform those services.
new text end

Sec. 3.

Minnesota Statutes 2008, section 326B.121, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Municipal ordinance; completion of exterior work. new text end

new text begin A municipality
may by ordinance adopt an official control that requires exterior work authorized by
a building permit issued in accordance with the state building code, to be completed
within a specified number of days following issuance of the building permit. The local
regulation may not require completion of exterior work earlier than 180 days following
the issuance of the permit.
new text end

Sec. 4.

Minnesota Statutes 2008, section 326B.43, subdivision 1, is amended to read:


Subdivision 1.

Rules.

The Plumbing Board may, by rule, prescribe minimum
standards which shall be uniform and which shall be effective for all new plumbing
installationsnew text begin performed anywhere in the statenew text end, including additions, extensions, alterations,
and replacements deleted text beginconnected with any water or sewage disposal system owned or operated
by or for any municipality, institution, factory, office building, hotel, apartment building,
or any other place of business regardless of location or the population of the city or town in
which the installation is to be located
deleted text end. Notwithstanding the provisions of Minnesota Rules,
part 4715.3130, as they apply to review of plans and specifications, the commissioner may
allow plumbing construction, alteration, or extension to proceed without approval of the
plans or specifications by the commissioner.

Except for powers granted to the Plumbing Board, the commissioner of labor and
industry shall administer the provisions of sections 326B.42 to 326B.49 and for such
purposes may employ plumbing inspectors and other assistants.

Sec. 5.

Minnesota Statutes 2008, section 326B.435, subdivision 2, is amended to read:


Subd. 2.

Powers; duties; administrative support.

(a) The board shall have the
power to:

(1) elect its chair, vice-chair, and secretary;

(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
and containing such other provisions as may be useful and necessary for the efficient
conduct of the business of the board;

(3) adopt the plumbing code that must be followed in this state and any plumbing
code amendments thereto. new text beginThe Plumbing Code shall include the minimum standards
described in sections 326B.43, subdivision 1, and 326B.52, subdivision 1.
new text end The board
shall adopt the plumbing code and any amendments thereto pursuant to chapter 14 and
as provided in subdivision 6, paragraphs (b), (c), and (d);

(4) review requests for final interpretations and issue final interpretations as provided
in section 326B.127, subdivision 5;

(5) except for rules regulating continuing education, adopt rules that regulate the
licensure or registration of plumbing contractors, journeymen, apprentices, master
plumbers, restricted master plumbers, deleted text beginanddeleted text end restricted journeymennew text begin, water conditioning
contractors, and water conditioning installers,
new text end and other persons engaged in the design,
installation, and alteration of plumbing systemsnew text begin or engaged in or working at the business
of water conditioning installation or service
new text end, except for those individuals licensed under
section 326.02, subdivisions 2 and 3. The board shall adopt these rules pursuant to chapter
14 and as provided in subdivision 6, paragraphs (e) and (f);

(6) advise the commissioner regarding educational requirements for plumbing
inspectors;

(7) refer complaints or other communications to the commissioner, whether oral or
written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
order that the commissioner has the authority to enforce pertaining to code compliance,
licensure, or an offering to perform or performance of unlicensed plumbing services;

(8) approve per diem and expenses deemed necessary for its members as provided in
subdivision 3;

(9) approve license reciprocity agreements;

(10) select from its members individuals to serve on any other state advisory council,
board, or committee; and

(11) recommend the fees for licenses and certifications.

Except for the powers granted to the Plumbing Board, the Board of Electricity, and the
Board of High Pressure Piping Systems, the commissioner of labor and industry shall
administer and enforce the provisions of this chapter and any rules promulgated pursuant
thereto.

(b) The board shall comply with section 15.0597, subdivisions 2 and 4.

(c) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by the other boards created pursuant
to this chapter. The commissioner shall provide staff support to the board. The support
includes professional, legal, technical, and clerical staff necessary to perform rulemaking
and other duties assigned to the board. The commissioner of labor and industry shall
supply necessary office space and supplies to assist the board in its duties.

Sec. 6.

Minnesota Statutes 2008, section 326B.475, subdivision 6, is amended to read:


Subd. 6.

Bond; insurance.

A restricted master deleted text beginor a restricted journeymandeleted text end plumber
licensee is subject to the bond and insurance requirements of section 326B.46, subdivision
2, unless the exemption provided by section 326B.46, subdivision 3, applies.

Sec. 7.

Minnesota Statutes 2008, section 326B.52, is amended to read:


326B.52 WATER CONDITIONING CONTRACTOR AND INSTALLER
STANDARDS.

Subdivision 1.

Rulemaking by deleted text begincommissionerdeleted text endnew text begin Plumbing Boardnew text end.

The deleted text begincommissionerdeleted text endnew text begin
Plumbing Board
new text end shall, by rule, prescribe minimum standards which shall be uniform, and
which standards shall thereafter be effective for all new water conditioning servicing and
water conditioning installationsnew text begin performed anywhere in the statenew text end, including additions,
extensions, alterations, and replacements deleted text beginconnected with any water or sewage disposal
system owned or operated by or for any municipality, institution, factory, office building,
hotel, apartment building or any other place of business, regardless of location or the
population of the city, county or town in which located
deleted text end.

Subd. 2.

Inspectors.

new text beginExcept for powers granted to the Plumbing Board, new text endthe
commissioner shall administer the provisions of sections 326B.50 to 326B.59 and for such
purposes may employ water conditioning inspectors and other assistants.

Sec. 8.

Minnesota Statutes 2008, section 326B.53, is amended to read:


326B.53 LOCAL REGULATIONS.

Any citynew text begin, county,new text end or town deleted text beginwith a population of 5,000 or more according to the last
federal census
deleted text end may, by ordinance, adopt local regulations providing for water conditioning
permits, bonds, approval of plans, and inspections of water conditioning installations and
servicing, which regulations shall not be in conflict with the deleted text beginwater conditioning standardsdeleted text end
new text begin rulesnew text end on the same subject prescribed by the commissioner. No deleted text beginsuchdeleted text end citynew text begin, county,new text end or town
shall prohibit water conditioning contractors or installers licensed by the commissioner
from engaging in or working at the business.

Sec. 9.

Minnesota Statutes 2008, section 326B.55, is amended to read:


326B.55 LICENSING IN CERTAIN CITIES; QUALIFICATIONS; RULES.

Subdivision 1.

Licensing deleted text beginin certain citiesdeleted text end.

deleted text beginIn any city or town having a population
of 5,000 or more according to the last federal census,
deleted text end No person shall engage in or work at
the business of water conditioning installation or servicing deleted text beginafter January 1, 1970,deleted text endnew text begin anywhere
in the state
new text end unless (1) at all times an individual licensed as a water conditioning contractor
by the commissioner shall be responsible for the proper water conditioning installation and
servicing work of such person, and (2) all installations, other than exchanges of portable
equipment, are performed by a licensed water conditioning contractor or licensed water
conditioning installer. Any individual not so licensed may perform water conditioning
work that complies with the minimum deleted text beginstandarddeleted text endnew text begin standardsnew text end prescribed by the deleted text begincommissionerdeleted text endnew text begin
Plumbing Board
new text end on premises or that part of premises owned and occupied by the worker
as a residence, unless otherwise prohibited by a local ordinance.

Subd. 2.

Qualifications for licensing.

A water conditioning contractor license shall
be issued only to an individual who has demonstrated skill in planning, superintending,
and servicing water conditioning installationsnew text begin, and has successfully passed the examination
for water conditioning contractors
new text end. A water conditioning installer license shall only be
issued to an individual other than a water conditioning contractor who has demonstrated
practical knowledge of water conditioning installationdeleted text begin.deleted text endnew text begin, and has successfully passed
the examination for water conditioning installers. A water conditioning installer must
successfully pass the examination for water conditioning contractors before being licensed
as a water conditioning contractor.
new text end

Subd. 3.

deleted text beginRulesdeleted text endnew text begin Commissionernew text end.

The commissioner shall:

(1) deleted text beginprescribe rules, not inconsistent herewith, for the licensing of water conditioning
contractors and installers;
deleted text end

deleted text begin (2)deleted text end license water conditioning contractors and installers;new text begin and
new text end

deleted text begin (3) prescribe rules not inconsistent herewith for the examining of water conditioning
contractors and installers prior to first granting a license as a water conditioning contractor
or water conditioning installer; and
deleted text end

deleted text begin (4)deleted text endnew text begin (2)new text end collect an examination fee from each examinee for a license as a water
conditioning contractor and an examination fee from each examinee for a license as
a water conditioning installer in an amount set forth in section 326B.58. deleted text beginA water
conditioning installer must successfully pass the examination for water conditioning
contractors before being licensed as a water conditioning contractor.
deleted text end

Sec. 10.

Minnesota Statutes 2008, section 326B.57, is amended to read:


326B.57 RULES.

In order to provide effective protection of the public health, the deleted text begincommissionerdeleted text endnew text begin
Plumbing Board
new text end may by rule prescribe limitations on the nature of alteration to, extension
of, or connection with, the said water distribution system initially established by a
licensed plumber which may be performed by a person licensed hereunderdeleted text begin, anddeleted text endnew text begin. The
commissioner
new text end may by rule in appropriate instances require filing of plans, blueprints and
specifications prior to commencement of installation. The installation of water heaters
shall not constitute water conditioning installation and consequently such work shall be
accomplished in accordance with the provisions of sections 326B.42 to 326B.49.

Sec. 11.

Minnesota Statutes 2008, section 326B.58, is amended to read:


326B.58 FEES.

Examination fees for both water conditioning contractors and water conditioning
installers shall be $50 for each examination. Each water conditioning contractor and
installer license shall expire on December 31 of the year for which it was issued. The
license fee for each initial water conditioning contractor's license shall be $70, except that
the license fee shall be $35 if the application is submitted during the last three months
of the calendar year. The license fee for each renewal water conditioning contractor's
license shall be $70. The license fee for each initial water conditioning installer license
shall be $35, except that the license fee shall be $17.50 if the application is submitted
during the last three months of the calendar year. The license fee for each renewal water
conditioning installer license shall be $35. The deleted text begincommissionerdeleted text endnew text begin Plumbing Boardnew text end may by
rule prescribe for the expiration and renewal of licenses. Any licensee who does not renew
a license within two years after the license expires is no longer eligible for renewal. Such
an individual must retake and pass the examination before a new license will be issued.
A water conditioning contractor or water conditioning installer who submits a license
renewal application after the time specified in rule but within two years after the license
expired must pay all past due renewal fees plus a late fee of $25.

Sec. 12.

Minnesota Statutes 2008, section 326B.59, is amended to read:


326B.59 STATE LICENSE; EXAMINATION; APPLICATION; EXEMPTION.

The provisions of sections 326B.50 to deleted text begin326B.59deleted text endnew text begin 326B.58new text end that require licenses to
engage in the work or business of water conditioning installation, and the provisions that
provide for the examination of applicants for such licenses, deleted text beginshall only apply to work
accomplished in cities or towns having populations of 5,000 or more according to the last
federal census, and shall
deleted text endnew text begin donew text end not apply to master plumbers and journeymen plumbers
licensed under the provisions of sections 326B.42 to 326B.49. new text beginIn all areas of the state
except in cities or towns with a population of more than 5,000 according to the last federal
census, the provisions of sections 326B.50 to 326B.58 that require licenses to engage in
the work or business of water conditioning installation, and the provisions that provide for
the examination of applicants for such licenses, do not apply to restricted master plumbers
and restricted journeyman plumbers licensed under the provisions of section 326B.475.
new text end

Sec. 13.

Minnesota Statutes 2008, section 326B.801, is amended to read:


326B.801 SCOPE.

Except as otherwise provided by law, deleted text beginthe provisions ofdeleted text end sections 326B.801 to
deleted text begin 326B.825deleted text endnew text begin 326B.885new text end apply to residential contractors, residential remodelers, residential
roofers, and manufactured home installers.

Sec. 14.

Minnesota Statutes 2008, section 326B.84, is amended to read:


326B.84 GROUNDS FOR LICENSE SANCTIONS.

In addition to the grounds set forth in section 326B.082, subdivision 11, the
commissioner may deny, suspend, limit, place conditions on, or revoke a license or
certificate of exemption, or may censure the person holding the license or certificate of
exemption, if the applicant, licensee, certificate of exemption holder, qualifying person,
new text begin owner, officer, new text endor affiliate of an applicant, licensee, or certificate of exemption holder, or
other agent owner:

(1) has filed an application for licensure or a certificate of exemption which is
incomplete in any material respect or contains any statement which, in light of the
circumstances under which it is made, is false or misleading with respect to any material
fact;

(2) has engaged in a fraudulent, deceptive, or dishonest practice;

(3) is permanently or temporarily enjoined by any court of competent jurisdiction
from engaging in or continuing any conduct or practice involving any aspect of the
business;

(4) has failed to reasonably supervise employees, agents, subcontractors, or
salespersons, or has performed negligently or in breach of contract, so as to cause injury
or harm to the public;

(5) has violated or failed to comply with any provision of sections 326B.802 to
326B.885, any rule or order under sections 326B.802 to 326B.885, or any other law, rule,
or order related to the duties and responsibilities entrusted to the commissioner;

(6) has been convicted of a violation of the State Building Code or has refused to
comply with a notice of violation or stop order issued by a certified building official, or in
local jurisdictions that have not adopted the State Building Code has refused to correct a
violation of the State Building Code when the violation has been documented or a notice
of violation or stop order issued by a certified building official has been received;

(7) has failed to use the proceeds of any payment made to the licensee for the
construction of, or any improvement to, residential real estate, as defined in section
326B.802, subdivision 13, for the payment of labor, skill, material, and machinery
contributed to the construction or improvement, knowing that the cost of any labor
performed, or skill, material, or machinery furnished for the improvement remains unpaid;

(8) has not furnished to the person making payment either a valid lien waiver as to
any unpaid labor performed, or skill, material, or machinery furnished for an improvement,
or a payment bond in the basic amount of the contract price for the improvement
conditioned for the prompt payment to any person or persons entitled to payment;

(9) has engaged in an act or practice that results in compensation to an aggrieved
owner or lessee from the contractor recovery fund pursuant to section 326B.89, unless:

(i) the applicant or licensee has repaid the fund twice the amount paid from the fund,
plus interest at the rate of 12 percent per year; and

(ii) the applicant or licensee has obtained a surety bond in the amount of at least
$40,000, issued by an insurer authorized to transact business in this state;

(10) has engaged in bad faith, unreasonable delays, or frivolous claims in defense
of a civil lawsuit or arbitration arising out of their activities as a licensee or certificate
of exemption holder under this chapter;

(11) has had a judgment entered against them for failure to make payments to
employees, subcontractors, or suppliers, that the licensee has failed to satisfy and all
appeals of the judgment have been exhausted or the period for appeal has expired;

(12) if unlicensed, has obtained a building permit by the fraudulent use of a fictitious
license number or the license number of another, or, if licensed, has knowingly allowed
an unlicensed person to use the licensee's license number for the purpose of fraudulently
obtaining a building permit; or has applied for or obtained a building permit for an
unlicensed person;

(13) has made use of a forged mechanic's lien waiver under chapter 514;

(14) has provided false, misleading, or incomplete information to the commissioner
or has refused to allow a reasonable inspection of records or premises;

(15) has engaged in an act or practice whether or not the act or practice directly
involves the business for which the person is licensed, that demonstrates that the applicant
or licensee is untrustworthy, financially irresponsible, or otherwise incompetent or
unqualified to act under the license granted by the commissioner; or

(16) has failed to comply with requests for information, documents, or other requests
from the department within the time specified in the request or, if no time is specified,
within 30 days of the mailing of the request by the department.

Sec. 15.

Minnesota Statutes 2008, section 326B.921, subdivision 1, is amended to read:


Subdivision 1.

License required; rules; time credit.

No individual shall engage in
or work at the business of a contracting high pressure pipefitter unless issued a contracting
high pressure pipefitter license to do so by the department under rules adopted by the
board. No license shall be required for repairs on existing installations. No individual shall
engage in or work at the business of journeyman high pressure pipefitter unless issued a
journeyman high pressure pipefitter competency license to do so by the department under
rules adopted by the board. An individual possessing a contracting high pressure pipefitter
competency license may also work as a journeyman high pressure pipefitter.

No person shall construct or install high pressure piping, nor install high pressure
piping in connection with the dealing in and selling of high pressure pipe material and
supplies, unless, at all times, an individual possessing a contracting high pressure pipefitter
competency license or a journeyman high pressure pipefitter competency license is
responsible for ensuring that the high pressure pipefitting work is in conformity with
Minnesota Statutes and Minnesota Rules.

The board shall prescribe rules, not inconsistent herewith, for the examination
and competency licensing of contracting high pressure pipefitters and journeyman high
pressure pipefitters deleted text beginand for issuance of permits by the department and municipalities
for the installation of high pressure piping
deleted text end.

An employee performing the duties of inspector for the department in regulating
pipefitting shall not receive time credit for the inspection duties when making an
application for a license required by this section.

Sec. 16.

new text begin [326B.961] TRIENNIAL AUDITS AND TEAM LEADER
CERTIFICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Triennial audits; assignment; qualifications. new text end

new text begin The chief boiler
inspector shall assign a qualified ASME designee or team leader to perform triennial
audits on ASME Code and national board stamp holders at the request of the stamp holder.
The department shall maintain qualifications for ASME designees and national board team
leaders in accordance with ASME and national board requirements.
new text end

new text begin Subd. 2. new text end

new text begin Fees. new text end

new text begin The fee for performing ASME and national board triennial audits
shall be the hourly rate pursuant to section 326B.986, subdivision 4.
new text end

Sec. 17. new text beginTIME LIMIT.
new text end

new text begin Notwithstanding the lapse of the time limit to adopt rules under Minnesota Statutes,
section 14.125, the commissioner of labor and industry's authority to adopt rules under
Minnesota Statutes, section 326B.978, subdivisions 4 and 18, is extended by 18 months
following the effective date of this section.
new text end

Sec. 18. new text beginRULE CHANGE.
new text end

new text begin The Plumbing Board shall amend Minnesota Rules, part 4715.0320, subpart 1, so
that it conforms with Minnesota Statutes, sections 326B.43 and 326B.52, as amended
by this act. The Plumbing Board may use the good cause exemption under Minnesota
Statutes, section 14.388, subdivision 1, clause (3), in adopting the amendment, and
Minnesota Statutes, section 14.386, does not apply.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 326B.43, subdivision 5, new text end new text begin is repealed.
new text end