SF 1717

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/28/2012 12:59pm

A bill for an act
relating to labor and industry; making changes to the State Building Code;
amending Minnesota Statutes 2010, sections 178.01; 178.03, subdivisions 3,
4; 178.05, subdivisions 1, 2; 178.06; 178.07; 178.08; 178.09, subdivisions 1,
2; 326B.092, subdivisions 2, 7; 326B.103, subdivision 3; Minnesota Statutes
2011 Supplement, sections 326B.46, subdivision 1a; 326B.49, subdivision 1;
repealing Minnesota Rules, parts 1300.0230, subpart 4; 1301.1201; 1302.0600;
3801.3640; 3801.3650; 3801.3660; 3801.3670; 3801.3680; 3801.3690;
3801.3700; 3801.3710; 3801.3720; 3801.3730; 3801.3740; 3801.3760;
3801.3790; 3801.3800.

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

Section 1.

Minnesota Statutes 2010, section 178.01, is amended to read:

178.01 PURPOSES.

The purposes of this chapter are: to open to deleted text begin young deleted text end new text begin all new text end people regardless of race,
sex, creed, color or national origin, the opportunity to obtain training and on-the-job
learning that will equip them for profitable employment and citizenship; to establish as
a means to this end, a program of voluntary apprenticeship under approved deleted text begin apprentice deleted text end new text begin
apprenticeship new text end agreements providing facilities for their training and guidance in the arts,
skills, and crafts of industry and trade new text begin or occupation new text end , with concurrent, supplementary
instruction in related subjects; to promote apprenticeship opportunities under conditions
providing adequate training and on-the-job learning and reasonable earnings; to relate the
supply of skilled workers to employment demands; to establish standards for apprentice
training; to establish an Apprenticeship Board and apprenticeship committees to assist in
effectuating the purposes of this chapter; to provide for a Division of Labor Standards
and Apprenticeship within the Department of Labor and Industry; to provide for reports
to the legislature regarding the status of apprentice training in the state; to establish a
procedure for the determination of deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement controversies;
and to accomplish related ends.

Sec. 2.

Minnesota Statutes 2010, section 178.03, subdivision 3, is amended to read:

Subd. 3.

Duties and functions.

The director, under the supervision of the
commissioner, and with the advice and consultation of the Apprenticeship Board, is
authorized: to administer the provisions of this chapter; to promote apprenticeship and
other forms of on-the-job learning; to establish, in cooperation and consultation with the
Apprenticeship Board and with the apprenticeship committees, conditions, training, and
learning standards for the approval of apprenticeship programs and agreements, which
conditions and standards shall in no case be lower than those (1) prescribed by this chapter,
and (2) established under Code of Federal Regulations, title 29, part 29; to promote equal
employment opportunity in apprenticeship and other on-the-job learning and to establish
a Minnesota plan for equal employment opportunity in apprenticeship which shall be
consistent with standards established under Code of Federal Regulations, title 29, part 30,
as amended; to issue certificates of registration to sponsors of approved apprenticeship
programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion
that approval is for the best interest of the apprentice, any apprenticeship agreement which
meets the standards established hereunder; to terminate any apprenticeship agreement in
accordance with the provisions of such agreement; to keep a record of apprenticeship
agreements and their disposition; to issue certificates of completion of apprenticeship;
and to perform such other duties as the commissioner deems necessary to carry out the
intent of this chapter; provided, that the administration and supervision of supplementary
instruction in related subjects for apprentices; coordination of instruction on a concurrent
basis with job experiences, and the selection and training of teachers and coordinators
for such instruction shall be the function of state and local boards responsible for
vocational education. The director shall have the authority to make wage determinations
applicable to the graduated schedule of wages and deleted text begin journeyman deleted text end new text begin journeyworker new text end wage rate
for apprenticeship agreements, giving consideration to the existing wage rates prevailing
throughout the state, except that no wage determination by the director shall alter an
existing wage provision for apprentices or deleted text begin journeymen deleted text end new text begin journeyworkers new text end that is contained in
a bargaining agreement in effect between an employer and an organization of employees,
nor shall the director make any determination for the beginning rate for an apprentice that
is below the wage minimum established by federal or state law.

Sec. 3.

Minnesota Statutes 2010, section 178.03, subdivision 4, is amended to read:

Subd. 4.

Reciprocity approval.

The director, if requested by a sponsoring entity,
shall grant reciprocity approval to apprenticeship programs of employers and unions
who jointly form a sponsoring entity on a multistate basis in other than the building
construction industry if such programs are in conformity with this chapter and have been
registered in compliance with Code of Federal Regulations, title 29, part 29, by a state
apprenticeship council recognized by or registered with the deleted text begin Bureau of Apprenticeship
and Training, deleted text end United States Department of Labor, new text begin Office of Apprenticeship, new text end when such
approval is necessary for federal purposes under Code of Federal Regulations, title 29,
section 29.13(a) new text begin or 29.13(b)(7) new text end .

Sec. 4.

Minnesota Statutes 2010, section 178.05, subdivision 1, is amended to read:

Subdivision 1.

Establishment of committees.

Apprenticeship committees may
be established by the director to supervise the operation of apprenticeship programs.
Establishment of a committee may be considered justified if either of the following
conditions are met:

(a) When the employers and employees in a trade new text begin or occupation new text end or trades new text begin or
occupations new text end are parties to a collective bargaining agreement requiring joint participation
in program operation; or

(b) When five or more apprentices are enrolled under a program.

Sec. 5.

Minnesota Statutes 2010, section 178.05, subdivision 2, is amended to read:

Subd. 2.

Members.

(a) The total number of members on a committee may range
from four to twelve.

(b) In joint participation there shall be equal representation of employers and
employees.

(c) Members shall be selected by the group or groups they represent subject to
approval by the director.

deleted text begin (d) A committee may have as one of its employee representatives, an active
apprentice of record, provided that the apprentice has completed a minimum of 6,000
hours of an apprenticeship term or has entered the fourth year of the term.
deleted text end

Sec. 6.

Minnesota Statutes 2010, section 178.06, is amended to read:

178.06 APPRENTICE.

The term "apprentice," as used herein, means a person at least 16 years of age who
has entered into a written agreement, hereinafter called an deleted text begin apprentice deleted text end new text begin apprenticeship new text end
agreement, with a committee, an employer, an association of employers, or an organization
of employees, which deleted text begin apprentice agreement deleted text end provides for new text begin learning consistent with this
chapter and Code of Federal Regulations, title 29, section 29.5(b)(1) and (b)(2) new text end :

(1) a time-based approach involving not less than 2,000 hours or one year
of reasonably continuous employment for such person and for participation in an
approved program of on-the-job learning through employment and through concurrent,
supplementary education in related subjects;

(2) a competency-based approach involving successful demonstration of acquired
skills and knowledge by an apprentice plus on-the-job learning; or

(3) a hybrid approach involving the completion of a specified minimum number of
hours plus the successful demonstration of competency.

Whenever a minimum age exceeding 16 years is prescribed by federal or state law
to apply to workers in certain hazardous occupations, the minimum age so prescribed
shall be applicable to apprentices.

Sec. 7.

Minnesota Statutes 2010, section 178.07, is amended to read:

178.07 deleted text begin APPRENTICE deleted text end new text begin APPRENTICESHIP new text end AGREEMENTS.

Every deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement entered into under this chapter shall
contain:

(1) the names of the contracting parties;

(2) the date of birth, and information as to the race and sex of the apprentice;

(3) a statement of the trade, craft, new text begin occupation, new text end or business which the apprentice is to
be taught, and the time at which the apprenticeship will begin and end;

(4) a statement showing the number of hours to be spent by the apprentice in work
and the number of hours to be spent in concurrent, supplementary instruction in related
subjects, which instruction shall be not less than 144 hours during each year of the
apprenticeship term. The maximum number of hours of work per week not including time
spent in related and supplemental instruction for any apprentice shall not exceed either
the number prescribed by law or the customary regular number of hours per week for the
employees of the company by which the apprentice is employed. An apprentice may
be allowed to work overtime provided that the overtime work does not conflict with
supplementary instruction course attendance. All time in excess of the number of hours of
work per week as specified in the apprenticeship agreement shall be considered overtime.
For overtime, the apprentice's rate of pay shall be increased by the same percentage as the
deleted text begin journeyman's deleted text end new text begin journeyworker's new text end rate of pay for overtime is increased in the same industry or
establishment;

(5) a statement setting forth a schedule of the processes in the trade new text begin , occupation, new text end
or industry divisions in which the apprentice is to be taught and the approximate time to
be spent at each process;

(6) a statement of the graduated scale of wages to be paid the apprentice and whether
the required school time shall be compensated;

(7) a statement providing for a period of probation of not more than 500 hours of
employment and instruction extending over not more than four months, during which time
the deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement shall be terminated by the director upon written
request of either party, and providing that after such probationary period the deleted text begin apprentice deleted text end new text begin
apprenticeship new text end agreement may be terminated by the director by mutual agreement of all
parties thereto, or terminated by the director for good and sufficient reason;

(8) a provision that controversies or differences concerning the terms of the
deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement which cannot be resolved by the parties thereto, or
which are not covered by a collective bargaining agreement, may be submitted to the
director for determination as provided for in section 178.09;

(9) a provision that an employer who is unable to fulfill an obligation under the
deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement may, with the approval of the director, transfer such
contract to any other employer, provided that the apprentice consents and that such other
employer agrees to assume the obligations of the deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement; and

(10) such additional terms and conditions as may be prescribed or approved by the
director not inconsistent with the provisions of this chapter.

Sec. 8.

Minnesota Statutes 2010, section 178.08, is amended to read:

178.08 DIRECTOR TO APPROVE deleted text begin APPRENTICE deleted text end new text begin APPRENTICESHIP new text end
AGREEMENTS.

Every deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement is subject to approval by the director
and shall be signed by the committee, the employer, an association of employers, or
an organization of employees, and by the apprentice, and if the apprentice is a minor,
by a parent or legal guardian. When a minor enters into an deleted text begin apprentice deleted text end new text begin apprenticeship new text end
agreement under this chapter for a period of learning extending into majority the
deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement shall likewise be binding for such a period as may be
covered during the apprentice's majority.

Sec. 9.

Minnesota Statutes 2010, section 178.09, subdivision 1, is amended to read:

Subdivision 1.

Complaint.

Upon the complaint of any interested person or upon
the director's own initiative the director may investigate to determine if there has been a
violation of the terms of an deleted text begin apprentice deleted text end new text begin apprenticeship new text end agreement made under this chapter.
The director may conduct such proceedings as are necessary for that investigation and
determination. All such proceedings shall be on a fair and impartial basis and shall be
conducted according to rules promulgated under section 178.041.

Sec. 10.

Minnesota Statutes 2010, section 178.09, subdivision 2, is amended to read:

Subd. 2.

Determination; appeal.

The determination of the director shall be filed
with the commissioner and written notice shall be served on all parties affected by it.
Any person aggrieved by any determination or action of the director may appeal to the
commissioner. If no appeal is filed with the commissioner within ten days of the date
of service, the director's determination shall become the order of the commissioner. If
an appeal is filed, the commissioner shall appoint and convene a hearing board to be
composed of three members of the deleted text begin council deleted text end new text begin Apprenticeship Board appointed under
section 178.02 new text end , one member being a representative of an employer organization, one
representative being a member of an employee organization, and one member representing
the general public. The board shall hold a hearing on the appeal after due notice to the
interested parties and shall submit to the commissioner findings of fact and a recommended
decision accompanied by a memorandum of the reasons for it. Within 30 days after
submission, the commissioner may adopt the recommended decision of the board, or
disregard the recommended decision of the board and prepare a decision based on the
findings of fact and accompanied by a memorandum of reasons for that decision. Written
notice of the commissioner's determination and order shall be served on all parties affected
by it. Any person aggrieved or affected by any determination or order of the commissioner
may appeal from it to the district court having jurisdiction at any time within 30 days after
the date of the order by service of a written notice of appeal on the commissioner. Upon
service of the notice of appeal, the commissioner shall file with the court administrator
of the district court to which the appeal is taken a certified copy of the order appealed
from, together with findings of fact on which it is based. The person serving a notice of
appeal shall, within five days after its service, file it, with proof of service, with the court
administrator of the court to which the appeal is taken. The district court shall then have
jurisdiction over the appeal and it shall be entered in the records of the district court and
tried de novo according to the applicable rules. Any person aggrieved or affected by any
determination, order, or decision of the district court may appeal as in other civil cases.

Sec. 11.

Minnesota Statutes 2010, section 326B.092, subdivision 2, is amended to read:

Subd. 2.

Licenses not requiring examination administered by commissioner.

If
the applicant for a license is not required to pass an examination in order to obtain the
license, or is required to pass an examination that is not administered by the commissioner,
then the license fee must accompany the application for the license. If the application is
for a license issued under sections 326B.802 to 326B.885 and is not an application for
license renewal, then the contractor recovery fund fee required under section 326B.89,
subdivision 3, is due deleted text begin after the department has determined that the applicant meets the
qualifications for licensing and deleted text end before the license is issued.

Sec. 12.

Minnesota Statutes 2010, section 326B.092, subdivision 7, is amended to read:

Subd. 7.

License fees and license renewal fees.

(a) The license fee for each license
deleted text begin except a renewed license shall be the base license fee plus any applicable board fee, as
set forth in this subdivision. The license renewal fee for each renewed license deleted text end is the
base license fee plus any applicable board fee, continuing education fee, and contractor
recovery fund fee and additional assessment, as set forth in this subdivision.

(b) For purposes of this section, "license duration" means the number of years for
which the license is issued except that:

(1) if the initial license is not issued for a whole number of years, the license duration
shall be rounded up to the next whole number; and

(2) if the department receives an application for license renewal after the renewal
deadline, license duration means the number of years for which the renewed license would
have been issued if the renewal application had been submitted on time and all other
requirements for renewal had been met.

(c) The base license fee shall depend on whether the license is classified as an entry
level, master, journeyman, or business license, and on the license duration. The base
license fee shall be:

License Classification	License Duration
	1 Year	2 Years	3 Years
Entry level	$10	$20	$30
Journeyman	$20	$40	$60
Master	$40	$80	$120
Business	$90	$180	$270

(d) If there is a continuing education requirement for renewal of the license, then
a continuing education fee must be included in the renewal license fee. The continuing
education fee for all license classifications shall be: $10 if the renewal license duration is
one year; $20 if the renewal license duration is two years; and $30 if the renewal license
duration is three years.

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to
326B.93, then a board fee must be included in the license fee and the renewal license fee.
The board fee for all license classifications shall be: $4 if the license duration is one year;
$8 if the license duration is two years; and $12 if the license duration is three years.

(f) If the application is for the renewal of a license issued under sections 326B.802
to 326B.885, then the contractor recovery fund fee required under section 326B.89,
subdivision 3, and any additional assessment required under section 326B.89, subdivision
16, must be included in the license renewal fee.

Sec. 13.

Minnesota Statutes 2010, section 326B.103, subdivision 3, is amended to read:

Subd. 3.

Agricultural building.

"Agricultural building" means a structure new text begin that is:
new text end

new text begin (1) new text end on agricultural land as deleted text begin defined in deleted text end new text begin determined by the governing assessor for the
municipality or county under new text end section 273.13, subdivision 23 deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end designed, constructed, and used to house farm implements, livestock, or
agricultural deleted text begin produce or deleted text end products new text begin under section 273.13, subdivision 23; and
new text end

new text begin (3) new text end used by the owner, lessee, and sublessee of the building and members of their
immediate families, their employees, and persons engaged in the pickup or delivery of
agricultural deleted text begin produce or deleted text end products.

Sec. 14.

Minnesota Statutes 2011 Supplement, section 326B.46, subdivision 1a,
is amended to read:

Subd. 1a.

Exemptions from licensing.

(a) An individual without a contractor
license may do plumbing work on the individual's residence in accordance with
subdivision 1, paragraph (a).

(b) An individual who is an employee working on the maintenance and repair of
plumbing equipment, apparatus, or facilities owned or leased by the individual's employer
and which is within the limits of property owned or leased, and operated or maintained by
the individual's employer, shall not be required to maintain a contractor license as long
as the employer has on file with the commissioner a current certificate of responsible
individual. The responsible individual must be a master plumber or, in an area of the
state that is not a city or town with a population of more than 5,000 according to the
last federal census, a restricted master plumber. The certificate must be signed by the
responsible individual and must state that the person signing the certificate is responsible
for ensuring that the maintenance and repair work performed by the employer's employees
complies with sections 326B.41 to 326B.49, all rules adopted under those sections and
sections 326B.50 to 326B.59, and all orders issued under section 326B.082. The employer
must pay a filing fee to file a certificate of responsible individual with the commissioner.
The certificate shall expire two years from the date of filing. In order to maintain a
current certificate of responsible individual, the employer must resubmit a certificate of
responsible individual, with a filing fee, no later than two years from the date of the
previous submittal. The filing of the certificate of responsible individual does not exempt
any employee of the employer from the requirements of this chapter regarding individual
licensing as a plumber or registration as deleted text begin a plumber's apprentice deleted text end new text begin an unlicensed individual new text end .

(c) If a contractor employs a licensed plumber, the licensed plumber does not need a
separate contractor license to perform plumbing work on behalf of the employer within
the scope of the licensed plumber's license.

(d) A person may perform and offer to perform building sewer or water service
installation without a contractor's license if the person is in compliance with the bond and
insurance requirements of subdivision 2.

Sec. 15.

Minnesota Statutes 2011 Supplement, section 326B.49, subdivision 1, is
amended to read:

Subdivision 1.

Application, examination, and license fees.

(a) Applications for
master and journeyman plumber's licenses shall be made to the commissioner, with
all fees required by section 326B.092. Unless the applicant is entitled to a renewal,
the applicant shall be licensed by the commissioner only after passing a satisfactory
examination developed and administered by the commissioner, based upon rules adopted
by the Plumbing Board, showing fitness.

(b) All initial journeyman plumber's licenses shall be effective for more than one
calendar year and shall expire on December 31 of the year after the year in which the
application is made. All master plumber's licenses shall expire on December 31 of each
even-numbered year after issuance or renewal. The commissioner shall in a manner
determined by the commissioner, without the need for any rulemaking under chapter 14,
phase in the renewal of master and journeyman plumber's licenses from one year to two
years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be
two-year licenses.

(c) Applications for contractor licenses shall be made to the commissioner, with all
fees required by section 326B.092. All contractor licenses shall expire on December 31 of
each odd-numbered year after issuance or renewal.

(d) For purposes of calculating license fees and renewal license fees required under
section 326B.092:

(1) the following licenses shall be considered business licenses: plumbing contractor
and restricted plumbing contractor;

(2) the following licenses shall be considered master licenses: master plumber and
restricted master plumber;

(3) the following licenses shall be considered journeyman licenses: journeyman
plumber and restricted journeyman plumber; and

(4) the registration of deleted text begin a plumber's apprentice deleted text end new text begin an unlicensed individual new text end under section
326B.47, subdivision 3, shall be considered an entry level license.

(e) For each filing of a certificate of responsible individual by an employer, the
fee is $100.

(f) The commissioner shall charge each person giving bond under section 326B.46,
subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a
licensed contractor.

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 1300.0230, subpart 4; 1301.1201; 1302.0600; 3801.3640;
3801.3650; 3801.3660; 3801.3670; 3801.3680; 3801.3690; 3801.3700; 3801.3710;
3801.3720; 3801.3730; 3801.3740; 3801.3760; 3801.3790; and 3801.3800, new text end new text begin are repealed.
new text end