as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to employment; modifying provisions relating 1.3 to high pressure piping installation; providing 1.4 penalties; amending Minnesota Statutes 1994, sections 1.5 326.48, subdivisions 1, 2, 3, 4, and 5; 326.50; 1.6 326.51; and 326.52. 1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 1994, section 326.48, 1.9 subdivision 1, is amended to read: 1.10 Subdivision 1. [LICENSE REQUIRED; RULES; TIME CREDIT.] No 1.11 person, firm, or corporationshall engage in or work at the 1.12 business of a contracting pipefitteror journeyman pipefitter1.13 unlesslicensedissued an individual contracting pipefitter 1.14 license to do so by the department of labor and industry.No1.15license shall be required for repairs on existing installations.1.16 No person shall engage in or work at the business of journeyman 1.17 pipefitter unless issued an individual journeyman pipefitter 1.18 competency license to do so by the department of labor and 1.19 industry. A person possessing an individual contracting 1.20 pipefitter competency license may also work as a journeyman 1.21 pipefitter. 1.22 No person, firm, or corporation shallengage in the1.23business of installinginstall high pressure piping, nor install 1.24 high pressure piping in connection with the dealing in and 1.25 selling of high pressure pipe material and supplies, unless, at 1.26 all times, alicensed pipefitter, who shall be responsible for2.1proper installation, is in charge ofperson possessing a 2.2 contracting pipefitter individual competency license or a 2.3 journeyman pipefitter individual competency license is 2.4 responsible for the high pressure pipefitting workofconducted 2.5 by the person, partnership, firm, or corporation being in 2.6 conformity with Minnesota Statutes and Minnesota Rules. 2.7 The department of labor and industry shall prescribe rules, 2.8 not inconsistent herewith, for the examination and individual 2.9 competency licensing of contracting pipefitters and journeyman 2.10 pipefitters and for issuance of permits by the department and 2.11 municipalities for the installation of high pressure piping. 2.12 An employee performing the duties of inspector for the 2.13 department of labor and industry in regulating pipefitting shall 2.14 not receive time credit for the inspection duties when making an 2.15 application for a license required by this section. 2.16 Sec. 2. Minnesota Statutes 1994, section 326.48, 2.17 subdivision 2, is amended to read: 2.18 Subd. 2. [CONTRACTING PIPEFITTER'SHIGH PRESSURE 2.19 PIPEFITTING BUSINESS LICENSE; BOND AND INSURANCE REQUIREMENTS.] 2.20The applicant for a contracting pipefitter license may give bond2.21to the state in the total penal sum of $2,000 conditioned upon2.22the faithful and lawful performance of all work entered upon2.23within the state. The bond shall be for the benefit of persons2.24injured or suffering financial loss by reason of failure of2.25performance. The term of the bond shall be concurrent with the2.26term of the license. The bond shall be filed with the secretary2.27of state of the state and shall be in lieu of all other license2.28bonds to any political subdivision. The bond shall be written2.29by a corporate surety licensed to do business in the state.2.30In addition, each applicant for a contracting pipefitter's2.31license or renewal thereof, may provide evidence of public2.32liability insurance, including products liability insurance,2.33with limits of at least $50,000 per person and $100,000 per2.34occurrence and property damage insurance with limits of at least2.35$10,000. The insurance shall be written by an insurer licensed2.36to do business in the state and each licensed contracting3.1pipefitter shall maintain on file with the department, a3.2certificate evidencing the insurance which provides that the3.3insurance shall not be canceled without the insurer first giving3.415 days written notice to the department. The term of the3.5insurance shall be concurrent with the term of the license. The3.6certificate shall be in lieu of all other certificates required3.7by any political subdivision for licensing purposes.A person, 3.8 partnership, firm, or corporation must obtain a high pressure 3.9 piping business license before engaging in the business of high 3.10 pressure piping or providing any bids or quotes for high 3.11 pressure piping. 3.12 A person, partnership, firm, or corporation must have at 3.13 all times as a full-time employee at least one individual 3.14 holding an individual contracting pipefitter competency 3.15 license. Only full-time employees who hold individual 3.16 contracting pipefitter licenses are authorized to obtain high 3.17 pressure piping permits in the name of the business. The 3.18 individual contracting pipefitter competency license holder can 3.19 be the employee of only one high pressure piping business at a 3.20 time. 3.21 To retain its business license without reapplication, a 3.22 person, partnership, firm, or corporation holding a high 3.23 pressure piping business license that ceases to employ a person 3.24 holding an individual contracting pipefitter competency license 3.25 shall have 60 days from the last day of employment of its 3.26 previous individual contracting pipefitter competency license 3.27 holder to employ another license holder. The department of 3.28 labor and industry must be notified no later than five days 3.29 after the last day of employment of the previous license holder. 3.30 No high pressure pipefitting work may be bid, quoted, or 3.31 performed during any period when the high pressure pipefitting 3.32 business does not have an individual contracting pipefitter 3.33 competency license holder on staff. If a license holder is not 3.34 employed within 60 days, the pipefitting business license shall 3.35 lapse. 3.36 The department of labor and industry shall prescribe by 4.1 rule procedures for application for and issuance of business 4.2 licenses and fees. 4.3 Sec. 3. Minnesota Statutes 1994, section 326.48, 4.4 subdivision 3, is amended to read: 4.5 Subd. 3. [BONDAND INSURANCE EXEMPTION.]A contracting4.6pipefitter who is an employee of a contracting pipefitter or who4.7is an employee engaged within the limits of property owned,4.8leased and operated, or maintained by the employer, in the4.9maintenance and repair of high pressure pipe work, equipment, or4.10facilities owned or leased by the employer, shall not be4.11required to meet the bond and insurance requirements of4.12subdivision 2.The applicant for a high pressure piping 4.13 business license or renewal shall give bond to the state in the 4.14 total penal sum of $15,000 conditioned upon the faithful and 4.15 lawful performance of all work entered upon within the state. 4.16 The bond shall run to and be for the benefit of persons injured 4.17 or suffering financial loss by reason of failure of payment or 4.18 performance. Claims and actions on the bond may be brought 4.19 according to sections 574.26 to 574.38. 4.20 The term of the bond must be concurrent with the term of 4.21 the high pressure pipefitting business license, and run without 4.22 interruption from the date of the issuance of the license to the 4.23 end of the calendar year. All high pressure pipefitting 4.24 business licenses must be annually renewed on a calendar year 4.25 basis. 4.26 The bond must be filed with the secretary of state and 4.27 shall be in lieu of any other business license bonds required by 4.28 any political subdivision for high pressure pipefitting. The 4.29 bond must be written by a corporate surety licensed to do 4.30 business in the state. 4.31 Sec. 4. Minnesota Statutes 1994, section 326.48, 4.32 subdivision 4, is amended to read: 4.33 Subd. 4. [ALTERNATIVE COMPLIANCEINSURANCE.]Compliance4.34with the local bond requirements of a locale within which work4.35is to be performed shall be deemed to satisfy the bond and4.36insurance requirements of subdivision 2.In addition to the 5.1 bond described in subdivision 3, each applicant for a high 5.2 pressure pipefitting business license or renewal shall have in 5.3 force public liability insurance, including products liability 5.4 insurance, with limits of at least $100,000 per person and 5.5 $300,000 per occurrence and property damage insurance with 5.6 limits of at least $50,000. 5.7 The insurance must be kept in force for the entire term of 5.8 the high pressure pipefitting business license, and the license 5.9 shall be suspended by the department if at any time the 5.10 insurance is not in force. 5.11 The insurance must be written by an insurer licensed to do 5.12 business in the state and shall be in lieu of any other 5.13 insurance required by any subdivision of government for high 5.14 pressure pipefitting. Each person, partnership, firm, or 5.15 corporation holding a high pressure pipefitting business shall 5.16 maintain on file with the department a certificate evidencing 5.17 the insurance. Any purported cancellation of insurance shall 5.18 not be effective without the insurer first giving 30 days' 5.19 written notice to the department. 5.20 Sec. 5. Minnesota Statutes 1994, section 326.48, 5.21 subdivision 5, is amended to read: 5.22 Subd. 5. [FEE.] The state department of labor and industry 5.23 may charge each applicant for acontracting pipefitterhigh 5.24 pressure pipefitting business license or for a renewal of 5.25 acontracting pipefitterhigh pressure pipefitting business 5.26 license and an additional fee commensurate with the cost of 5.27 administering the bond and insurance requirements ofsubdivision5.282subdivisions 3 and 4. 5.29 Sec. 6. Minnesota Statutes 1994, section 326.50, is 5.30 amended to read: 5.31 326.50 [APPLICATION; FEES.] 5.32 Application fora pipefitter'san individual contracting 5.33 pipefitter competency or an individual journeyman pipefitter 5.34 competency license shall be made to the department of labor and 5.35 industry, with fees. The applicant shall be licensed only after 5.36 passing an examination by the department of labor and industry. 6.1 Fees and conditions for renewal ofjourneyman and contracting6.2pipefitter's licensesan individual contracting pipefitter 6.3 competency or an individual journeyman pipefitter competency 6.4 license shall besetdetermined by thecommissionerdepartment 6.5 by rule under chapter 14 and section 16A.128. 6.6 Sec. 7. Minnesota Statutes 1994, section 326.51, is 6.7 amended to read: 6.8 326.51 [DEPARTMENT MAY REVOKE LICENSES.] 6.9 The department may revoke or suspend, for cause, any 6.10 license obtained through error or fraud, or if the licensee is 6.11 shown to be incompetent, or for a violation of any of its rules 6.12 and regulations applicable tosuchhigh pressure pipefitting 6.13 work. The licensee shall have notice, in writing, enumerating 6.14 the charges, and be entitled to a hearing on at least ten days' 6.15 notice, with the right to produce testimony. The hearing shall 6.16 be held pursuant to chapter 14. The commissioner shall issue a 6.17 final order based on testimony and the record at hearing. One 6.18 year from the date of revocation application may be made for a 6.19 new license. 6.20 Sec. 8. Minnesota Statutes 1994, section 326.52, is 6.21 amended to read: 6.22 326.52 [DEPOSIT OF FEES.] 6.23 All fees received under sections 326.46 to 326.52 shall be 6.24 deposited by the department of labor and industry to the credit 6.25 of the general fund in the state treasury. The salaries and per 6.26 diem of the inspectors and examiners hereinbefore provided, 6.27 their expenses, and all incidental expenses of the department in 6.28 carrying out the provisions of sections 326.46 to 326.52 shall 6.29 be paid from the appropriations made to the department of labor 6.30 and industry. The commissioner by rule shall set the amount of 6.31 the fees at a level that approximates, to the greatest extent 6.32 possible, the salaries, per diem, and incidental expenses of the 6.33 department.