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SF 2065

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 10/30/2014 02:20pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

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A bill for an act
relating to labor and industry; extending an independent contractor pilot
program; making federal conformity changes to the apprenticeship program;
modifying municipal building code enforcement; providing an exception to
high pressure boiler requirements; requiring a workgroup to study plumbing at
certain resorts; appropriating money for a high pressure boiler study; amending
Minnesota Statutes 2012, sections 178.02; 178.03; 178.041, subdivision 2;
178.07; 178.09; 178.10; 181.723, subdivisions 4, 4a, 5, 7, 8a; 326B.106,
subdivision 2, by adding subdivisions; 326B.988; proposing coding for new law
in Minnesota Statutes, chapters 178; 326B; repealing Minnesota Statutes 2012,
sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts
5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14,
15; 5200.0340; 5200.0360; 5200.0390.

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

Section 1.

new text begin [178.011] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The terms defined in this section have the meanings given
and apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Apprentice. new text end

new text begin "Apprentice" means a worker who is at least 16 years of
age who is employed to learn an apprenticeable trade or occupation in a registered
apprenticeship program under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Apprenticeship Advisory Board. new text end

new text begin "Apprenticeship Advisory Board" or
"board" means the Apprenticeship Advisory Board established under section 178.02 and
as an advisory State Apprenticeship Council as defined in Code of Federal Regulations,
title 29, section 29.2.
new text end

new text begin Subd. 4. new text end

new text begin Apprenticeship program. new text end

new text begin "Apprenticeship program" means a program
registered under this chapter that includes standards containing all terms and conditions
for the qualification, recruitment, selection, employment, and training of apprentices,
as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written
apprenticeship agreement.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of labor and
industry or a duly designated representative of the commissioner who is an employee
of the department.
new text end

new text begin Subd. 6. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Labor and Industry
established under section 175.001.
new text end

new text begin Subd. 7. new text end

new text begin Division. new text end

new text begin "Division" means the department's Labor Standards and
Apprenticeship Division, established under sections 175.16 and 178.03, and the State
Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29,
section 29.2.
new text end

new text begin Subd. 8. new text end

new text begin Employer. new text end

new text begin "Employer" means any person or organization employing
an apprentice whether or not the person or organization is a party to an apprenticeship
agreement with the apprentice.
new text end

new text begin Subd. 9. new text end

new text begin Journeyworker. new text end

new text begin "Journeyworker" means a person who has attained a level
of skill, abilities, and competencies recognized within an industry as having mastered the
skills and competencies required for the trade or occupation.
new text end

new text begin Subd. 10. new text end

new text begin Registered apprenticeship agreement. new text end

new text begin "Registered apprenticeship
agreement" or "apprenticeship agreement" means a written agreement, complying with
section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is
a minor, the minor's parent or guardian, which contains the terms and conditions of the
employment and training of the apprentice.
new text end

new text begin Subd. 11. new text end

new text begin Related instruction. new text end

new text begin "Related instruction" means an organized and
systematic form of instruction designed to provide the apprentice with the knowledge of
the theoretical and technical subjects related to the apprentice's trade or occupation. The
instruction may be given in a classroom through trade, occupational, or industrial courses
or, when of equivalent value, by correspondence, electronic media, or other forms of
self-study approved by the commissioner.
new text end

new text begin Subd. 12. new text end

new text begin Sponsor. new text end

new text begin "Sponsor" means an employer, employer association, or
apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29,
section 29.2, that operates an apprenticeship program and in whose name the program is
or is to be registered or approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 2.

new text begin [178.012] UNIFORMITY WITH FEDERAL LAW.
new text end

new text begin Subdivision 1. new text end

new text begin Apprenticeship rules. new text end

new text begin Federal regulations governing apprenticeship
in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29,
sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to
amendment by this chapter or by rule under section 178.041.
new text end

new text begin Subd. 2. new text end

new text begin State Apprenticeship Agency. new text end

new text begin The commissioner shall take all necessary
steps as permitted by law to obtain and maintain the status of the division as a State
Apprenticeship Agency recognized by the United States Department of Labor under Code
of Federal Regulations, title 29, part 29, section 29.13.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2012, section 178.02, is amended to read:


178.02 APPRENTICESHIP new text beginADVISORY new text endBOARD.

Subdivision 1.

Members.

The commissioner deleted text beginof labor and industry, hereinafter
called the commissioner,
deleted text end shall appoint an Apprenticeship Boarddeleted text begin, hereinafter referred
to as the board,
deleted text end composed of three representatives each from employer and employee
organizations, and two representatives of the general public. deleted text beginThe directordeleted text endnew text begin A designee of
the commissioner
new text end of education responsible for career and technical education or designee
shall be an ex officio member of the board and shall serve in an advisory capacity only.

Subd. 2.

Terms.

The board shall not expire. The terms, compensation, and removal
of appointed members shall be as provided in section 15.059.

Subd. 4.

Duties.

The board shall meet at the call of the commissionernew text begin and
shall advise the commissioner about matters relating to this chapter
new text end. It shall propose
occupational classifications for apprenticeship programs; propose minimum standards for
apprenticeship programs and agreements; and advise on the establishment of such policies,
procedures, and rules as the board new text beginor commissioner new text enddeems necessary in implementing
the intent of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 4.

Minnesota Statutes 2012, section 178.03, is amended to read:


178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP.

Subdivision 1.

Establishment of division.

There is established a Division of Labor
Standards and Apprenticeship in the Department of Labor and Industry. This division
shall be administered by a director, and be under the supervision of the commissioner deleted text beginof
labor and industry, hereinafter referred to as the commissioner
deleted text end.

Subd. 2.

Director of labor standards and apprenticeship.

The commissioner
shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter
referred to as the director, and may appoint and employ such clerical, technical, and
professional help as is necessary to accomplish the purposes of this chapter. The director
and division staff shall be appointed and shall serve in the classified service pursuant to
civil service law and rules.

Subd. 3.

Duties and functions.

deleted text beginThe 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
deleted text endnew text begin The division shall be administered as prescribed by this chapter
and in accordance with
new text end 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 amendeddeleted text begin; 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
deleted text end. The deleted text begindirectordeleted text endnew text begin divisionnew text end shall have the authority to make wage
determinations applicable to the graduated schedule of wages and journeyworker 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 journeyworkers 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.

Subd. 4.

Reciprocity approval.

The deleted text begindirectordeleted text endnew text begin commissionernew text end, if requested by a
deleted text beginsponsoring entitydeleted text endnew text begin program sponsornew text end, shall grant reciprocity approval to new text beginapprentices,
new text endapprenticeship programs deleted text beginof 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 United States Department of Labor, Office of Apprenticeship,
when such approval is necessary for federal purposes under Code of Federal Regulations,
title 29, section 29.13(a) or 29.13(b)(7)
deleted text endnew text begin, and standards that are registered in other states.
Program sponsors seeking reciprocal approval must meet the requirements of this chapter
including the wage and hour provisions and apprentice ratio standards
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 5.

new text begin [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin To apply for the registration of an apprenticeship
program, a sponsor shall submit a completed application to the division on a form provided
by the commissioner, which shall include standards of apprenticeship that comply with the
requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Provisional approval. new text end

new text begin The division shall grant a provisional approval
period of one year to an applicant demonstrating that the standards submitted meet the
requirements of this chapter. The division may review each program granted provisional
approval for quality and for conformity with the requirements of this section and section
178.036 at any time, but not less than biannually, during the provisional approval period.
After review:
new text end

new text begin (1) a program that conforms with the requirements of this chapter:
new text end

new text begin (i) may be approved; or
new text end

new text begin (ii) may continue to be provisionally approved through the first full training cycle; and
new text end

new text begin (2) a program not in operation or not conforming with the requirements of this
chapter during the provisional approval period shall be deregistered.
new text end

new text begin The division shall inform the applicant of the results of its review in writing at least 30
days prior to the expiration of the provisional approval period.
new text end

new text begin Subd. 3. new text end

new text begin Review. new text end

new text begin The division shall review all programs for quality and for
conformity with the requirements of this chapter at the end of the first full training
cycle. Subsequent review of a registered program must be conducted at least annually.
Programs not in operation or not conforming to this chapter at the time of review may be
recommended for deregistration.
new text end

new text begin Subd. 4. new text end

new text begin Program modification. new text end

new text begin To apply for modification of or change to a
registered program, a sponsor shall submit a written request for modification to the
division. The division shall approve or disapprove a modification request within 90 days
from the date of receipt. If approved, the modification or change must be recorded and
acknowledged within 90 days of its approval as an amendment to the registered program.
If not approved, the division shall notify the sponsor in writing of the disapproval and the
reasons for the disapproval. The division may provide technical assistance to a sponsor
seeking to modify or change a registered program.
new text end

new text begin Subd. 5. new text end

new text begin Notice. new text end

new text begin When an application is submitted under subdivision 1 by an
employer or employers' association, and where the standards, collective bargaining
agreement, or other instrument provides for participation by a union in any manner in the
operation of the substantive matters of the apprenticeship program, and the participation
is exercised, a written acknowledgment of the union's agreement or a written statement
specifying that the union has no objection to the registration is required. Where no union
participation is evidenced and practiced, the employer or employers' association shall
simultaneously furnish to the union, if any, which functions as the collective bargaining
agent of the employees to be trained, a copy of its application for registration and the
apprenticeship program. The commissioner shall provide a reasonable time of not less
than 30 days nor more than 60 days for receipt of union comments, if any, before final
action on the application for registration is taken. Union comments must be submitted to
the division during the time period specified by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Certificate. new text end

new text begin Upon registration of a program, the commissioner shall issue a
certificate of registration to the sponsor. Within 30 days after the certificate is mailed or
otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of
at least one executed apprenticeship agreement.
new text end

new text begin Subd. 7. new text end

new text begin Policy requirement. new text end

new text begin It must be the policy of the employer and sponsor
that the recruitment, selection, employment, and training of apprentices during their
apprenticeship must be without discrimination due to race, color, creed, religion, national
origin, sex, sexual orientation, marital status, physical or mental disability, receipt of
public assistance, or age. The employer and sponsor must take affirmative action to
provide equal opportunity in apprenticeship and must operate the apprenticeship program
as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota
plan for equal opportunity in apprenticeship.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 6.

new text begin [178.036] STANDARDS OF APPRENTICESHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Federal uniformity. new text end

new text begin Each program must have an organized, written
plan of program standards embodying the terms and conditions of employment, training,
and supervision of one or more apprentices in an apprenticeable trade or occupation, as
defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by
a sponsor and employer who has undertaken to carry out the apprentice training program.
The program standards must contain the provisions that address each item identified in
Code of Federal Regulations, title 29, part 29, section 29.5(b).
new text end

new text begin Subd. 2. new text end

new text begin Standards. new text end

new text begin (a) In addition to the requirements in subdivision 1, the
program standards must also contain provisions in compliance with paragraphs (b) to (k):
new text end

new text begin (b) Related instruction. A minimum of 144 hours of related instruction is required
in each training cycle. At least 50 hours of related safety instruction is required during the
term of apprenticeship. Time spent in related instruction cannot be considered as hours of
work as required by the job process schedule. Every apprenticeship instructor must meet
the Department of Education's requirements for a vocational-technical instructor or be a
subject matter expert, which is an individual such as a journeyworker who is recognized
within an industry as having expertise in a specific trade or occupation.
new text end

new text begin (c) Job process schedule. Each time-based apprenticeship program must include
not less than 2,000 hours of reasonably continuous employment.
new text end

new text begin (d) Ratios. If the apprentice is covered by a collective bargaining agreement, the
employer must follow the provisions of the collective bargaining agreement regarding the
maximum number of apprentices to be employed at the work site for each journeyworker
employed at the same work site. In the absence of a collective bargaining agreement, for
the purposes of direct supervision and the safety and instruction of the apprentice, the
ratio shall be:
new text end

new text begin (1) one apprentice for the first journeyworker employed at the work site plus one
apprentice for each additional three journeyworkers employed at the work site;
new text end

new text begin (2) the work site ratio utilized by the majority of registered apprenticeship
agreements in the same trade or occupation; or
new text end

new text begin (3) a program-specific ratio that has been approved by the Apprenticeship Advisory
Board.
new text end

new text begin (e) Graduated schedule of wages. The graduated schedule of wages for an
apprenticeship program shall be calculated as a percentage of the journeyworker rate in
the majority of registered apprenticeship agreements in the same trade or occupation in the
state. If there are no registered apprenticeship agreements in the same trade or occupation,
the graduated schedule of wages may be determined by the sponsor.
new text end

new text begin (f) Probationary period. The standards must provide 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 apprenticeship agreement shall be terminated by the director
upon written request of either party, and providing that after such probationary period the
apprenticeship agreement may be terminated by the director by mutual agreement of all
parties thereto, or terminated by the director for good and sufficient reason.
new text end

new text begin (g) Dispute resolution. The program standards must include a provision that
controversies or differences concerning the terms of the apprenticeship agreement which
cannot be resolved by the parties thereto, or which are not covered by a collective
bargaining agreement, may be submitted to the commissioner for determination as
provided for in section 178.09.
new text end

new text begin (h) Term of apprenticeship. The term of apprenticeship may be measured either
through:
new text end

new text begin (1) the time-based approach, which requires completion of at least 2,000 work
hours of on-the-job training;
new text end

new text begin (2) the competency-based approach, which requires the attainment of competency; or
new text end

new text begin (3) the hybrid approach, which is a blend of the time-based and competency-based
approaches.
new text end

new text begin (i) Training cycle. The training cycle for related instruction must be designated in
hours, days, or months for each individual trade or occupation included in the standards.
new text end

new text begin (j) Responsibilities of the apprentice. An apprentice employed under the program
standards shall agree to be punctual and regular in attendance, and to endeavor to the best
of the apprentice's ability to perfect the required skills for the trade or occupation.
new text end

new text begin (k) Coordination of apprentices. The sponsor shall designate a qualified individual
as a coordinator of apprentices who shall:
new text end

new text begin (1) maintain an adequate record of progress in training each apprentice;
new text end

new text begin (2) be responsible for assuring that the requirements of the applicable learning
program are met during the prescribed training term; and
new text end

new text begin (3) perform other duties as may be assigned by the sponsor relative to the
development and operation of an effective program of apprenticeship.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 7.

Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read:


Subd. 2.

Chapter 14 applies.

Rules, modifications, amendments, and repeals
thereof which may be issued by the commissioner under this deleted text beginsectiondeleted text endnew text begin chapternew text end shall be
adopted in accordance with chapter 14 and shall have the force and effect of law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 8.

new text begin [178.044] DETERMINATION OF APPRENTICE WAGES.
new text end

new text begin Subdivision 1. new text end

new text begin Maximum hours. new text end

new text begin The maximum number of hours of work per week
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.
Time spent in related and supplemental instruction for any apprentice shall not be included
in the maximum number of hours of work per workweek.
new text end

new text begin Subd. 2. new text end

new text begin Overtime. new text end

new text begin An apprentice may be allowed to work overtime provided that
the overtime work does not conflict with related 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 journeyworker's rate of pay for overtime is
increased in the same industry or establishment.
new text end

new text begin Subd. 3. new text end

new text begin Journeyworker wage rate. new text end

new text begin If the apprentice is not covered by a collective
bargaining agreement, the journeyworker wage rate upon which the apprentice agreement
graduated schedule of wages is calculated shall be:
new text end

new text begin (1) the most current Minnesota state prevailing wage rate determination for the
same trade or occupation in the county in which the apprentice's employer is located. If
an apprenticeship agreement entered into after January 1, 2015, does not specify fringe
benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated
must be the total rate listed in the wage determination; or
new text end

new text begin (2) if there is no Minnesota prevailing wage rate determination for the same trade or
occupation in the county in which the apprentice's employer is located, the journeyworker
wage may be determined by the sponsor with the approval of the division.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 9.

Minnesota Statutes 2012, section 178.07, is amended to read:


178.07 new text beginREGISTERED new text endAPPRENTICESHIP AGREEMENTS.

new text begin Subdivision 1. new text end

new text begin Approval required. new text end

new text begin All terminations, cancellations, and transfers of
apprenticeship agreements shall be approved by the division in writing. The division must
be notified in writing by the sponsor within 45 days of all terminations, cancellations,
or transfer of apprenticeship agreements.
new text end

new text begin Subd. 2. new text end

new text begin Signatures required. new text end

new text begin Apprenticeship agreements shall be signed by
the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal
guardian. When a minor enters into an apprenticeship agreement under this chapter for a
period of learning extending into majority, the apprenticeship agreement shall likewise be
binding for such a period as may be covered during the apprentice's majority.
new text end

new text begin Subd. 3. new text end

new text begin Contents. new text end

Every apprenticeship agreement entered into under this chapter
shall contain:

(1) the names of the contracting partiesnew text begin, and the signatures required by subdivision 1new text end;

(2) the date of birth, and information as to the race and sex of the apprenticenew text begin, and, on
a voluntary basis, the apprentice's Social Security number
new text end;

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

new text begin (3) contact information of the sponsor and the division;
new text end

(4) a statement deleted text beginshowingdeleted text endnew text begin of the trade or occupation which the apprentice is to be
taught, the date on which the apprenticeship will begin, and
new text end the number of hours to be
spent by the apprentice in work and the number of hours to be spent in concurrent,
deleted text beginsupplementary 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 journeyworker's rate of pay for overtime is
increased in the same industry or establishment
deleted text endnew text begin related instructionnew text end;

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

deleted text begin (6)deleted text endnew text begin (5)new text end a statement of the deleted text begingraduated scale ofdeleted text end wages to be paid the apprentice
deleted text beginand whether the required school time shall be compensateddeleted text endnew text begin under sections 178.036,
subdivision 2, paragraph (e), and 178.044, as applicable
new text end;

deleted text begin (7)deleted text endnew text begin (6)new text end a statement deleted text beginproviding 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 apprenticeship agreement shall be terminated by the director upon written request
of either party, and providing that after such probationary period the apprenticeship
agreement may be terminated by the director by mutual agreement of all parties thereto,
or terminated by the director for good and sufficient reason
deleted text endnew text begin listing any fringe benefits
to be provided to the apprentice
new text end;

deleted text begin (8) a provision that controversies or differences concerning the terms of the
apprenticeship 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;
deleted text end

deleted text begin (9) a provision that an employer who is unable to fulfill an obligation under the
apprenticeship 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 apprenticeship agreement; and
deleted text end

new text begin (7) a statement incorporating as part of the agreement the registered standards of
the apprenticeship program on the date of the agreement and as they may be amended
during the period of the agreement;
new text end

new text begin (8) a statement that the apprentice will be accorded equal opportunity in all phases
of apprenticeship employment and training, without discrimination due to race, color,
creed, religion, national origin, sex, sexual orientation, marital status, physical or mental
disability, receipt of public assistance, or age; and
new text end

deleted text begin (10)deleted text endnew text begin (9)new text end such additional terms and conditions as may be prescribed or approved by
the deleted text begindirectordeleted text endnew text begin commissionernew text end not inconsistent with the provisions of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 10.

Minnesota Statutes 2012, section 178.09, is amended to read:


178.09 INVESTIGATIONS deleted text beginBY DIRECTORdeleted text endnew text begin AND ENFORCEMENT OF
APPRENTICESHIP AGREEMENTS
new text end.

Subdivision 1.

Complaint.

Upon the complaint of any interested person or upon the
deleted text begindirector'sdeleted text endnew text begin division'snew text end own initiativenew text begin,new text end the deleted text begindirectordeleted text endnew text begin divisionnew text end may investigate to determine if
there has been a violation of the terms of an apprenticeship agreement made under this
chapter. new text beginComplaints must be made in writing within 60 days of the events giving rise to the
complaint and must set forth the specific matters complained of together with relevant facts
and circumstances. Copies of pertinent documents and correspondence must accompany
the complaint.
new text endThe deleted text begindirectordeleted text endnew text begin divisionnew text end may conduct such proceedings as are necessary for
that investigation and determination. All such proceedings shall be on a fair and impartial
basis deleted text beginand shall be conducted according to rules promulgated under section 178.041deleted text end.

Subd. 2.

Determination; appeal.

new text beginWithin 90 days after the receipt of a complaint,
the division must issue a determination.
new text endThe determination of the deleted text begindirectordeleted text endnew text begin divisionnew text end 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 deleted text begindirector'sdeleted text endnew text begin division'snew text end determination shall become the new text beginfinal new text endorder 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 Apprenticeship new text beginAdvisory new text endBoard appointed
under section 178.02, 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 deleted text beginor affecteddeleted text end by deleted text beginanydeleted text endnew text begin the commissioner'snew text end determination deleted text beginor 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
deleted text endnew text begin and order under this section is entitled to judicial review under sections 14.63 to
14.68 in the same manner that a person aggrieved by a final decision in a contested case is
entitled to judicial review. The commissioner's determination and order under this section
shall be a final decision and order of the department for purposes of sections 14.63 to 14.68
new text end.

new text begin Subd. 3. new text end

new text begin Service. new text end

new text begin Service under this chapter may be by certified first class mail,
personal service, or in accordance with any consent to service filed with the commissioner.
Service by mail shall be accomplished in the manner provided in Minnesota Rules, part
1400.5550, subpart 2. Personal service shall be accomplished in the manner provided in
Minnesota Rules, part 1400.5550, subpart 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 11.

new text begin [178.091] INVESTIGATIONS AND ENFORCEMENT;
APPRENTICESHIP PROGRAMS AND STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Investigations. new text end

new text begin In order to carry out the purposes of this chapter,
the commissioner may investigate registered apprenticeship programs and applicants
for program registration to determine whether there are any grounds for deregistration
of a registered program or for the denial of an application. Persons requested by the
commissioner to provide information or produce documents shall respond within 30 days
of the commissioner's service of the request.
new text end

new text begin Subd. 2. new text end

new text begin Grounds. new text end

new text begin (a) The commissioner may deregister a registered apprenticeship
program or deny an application for registration if:
new text end

new text begin (1) the program does not comply with any requirement of Code of Federal
Regulations, title 29, part 29 or 32, this chapter, or any rule adopted pursuant to section
178.041;
new text end

new text begin (2) the program does not have at least one registered apprentice in each trade or
occupation, except for the following specified periods of time:
new text end

new text begin (i) within the first 30 days after the date a program is registered; or
new text end

new text begin (ii) within one year of the date that a program graduates an apprentice in a trade or
occupation and the date of registration for the next apprentice in that trade or occupation; or
new text end

new text begin (3) the program is not conducted, operated, or administered in accordance with
the program's registered standards or with the requirements of this chapter, including
but not limited to:
new text end

new text begin (i) failure to provide on-the-job learning;
new text end

new text begin (ii) failure to provide related instruction;
new text end

new text begin (iii) failure of an employer to pay the apprentice a progressively increasing schedule
of wages consistent with the apprentice's skills acquired; or
new text end

new text begin (iv) persistent and significant failure to perform successfully.
new text end

new text begin (b) The commissioner may deregister an apprenticeship program at the written
request of the sponsor in a manner consistent with the provisions of Code of Federal
Regulations, title 29, part 29, section 29.8(a).
new text end

new text begin Subd. 3. new text end

new text begin Reinstatement. new text end

new text begin If the commissioner deregisters a registered apprenticeship
program, the sponsor may request reinstatement not before one year after the effective
date of the deregistration. The commissioner may, as a condition of reinstatement, require
the sponsor to comply with reasonable conditions the commissioner considers necessary
to effectuate the purposes of this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Orders; hearings related to orders. new text end

new text begin (a) If the commissioner determines
that a registered apprenticeship program should be deregistered or that an application for
registration should be denied, the commissioner shall issue to and serve on the sponsor an
order deregistering the program's registration or denying the application for registration.
new text end

new text begin (b) An order issued under this subdivision must specify:
new text end

new text begin (1) the deficiency and the required remedy or corrective action;
new text end

new text begin (2) the time period to effectuate the required remedy or corrective action, which
shall be no more than 90 days; and
new text end

new text begin (3) any other requirement consistent with Code of Federal Regulations, title 29,
part 29, section 29.8(b).
new text end

new text begin (c) The sponsor to whom the commissioner issues an order under this subdivision
may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 12.

Minnesota Statutes 2012, section 178.10, is amended to read:


178.10 LIMITATION.

new text begin (a) new text endThe provisions of this chapter shall have no application to those deleted text begininfants
deleted text endnew text begin individualsnew text end who are apprenticed by the commissioner of corrections pursuant to sections
242.43 and 242.44.

new text begin (b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:
new text end

new text begin (1) any apprenticeship provision in any collective bargaining agreement between
employers and employees establishing higher apprenticeship standards; or
new text end

new text begin (2) any special provision for veterans, minority persons, or women, in the standards,
apprentice qualifications, or operation of the program or in the apprenticeship agreement
which is not otherwise prohibited by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 13.

Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read:


Subd. 4.

Independent contractor.

(a) An individual is an independent contractor
and not an employee of the person for whom the individual is performing services in the
course of the person's trade, business, profession, or occupation only if the individual deleted text beginis
registered with the Department of Labor and Industry, if required under subdivision 4a,
and the individual
deleted text end:

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

(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;

(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;

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

(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;

(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;

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

(8) has continuing or recurring business liabilities or obligations; and

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

new 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.
new text end

(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:

(1) the business entity meets the nine factors in paragraph (a);

(2) invoicesnew text begin and paymentsnew text end are deleted text beginsubmitteddeleted text end in the name of the business entity;new text begin and
new text end

(3) the business entity is registered with the secretary of state, if requireddeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (4) the business entity is registered with the Department of Labor and Industry,
if required under subdivision 4a.
deleted text end

new 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.
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. 14.

Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read:


Subd. 4a.

new text beginApplicability; new text endregistration deleted text beginpilot projectdeleted text endnew text begin requirementnew text end.

(a) deleted text beginThe
commissioner shall implement a pilot project, effective July 1, 2012, for the registration
of
deleted text end Persons who perform public or private sector commercial or residential building
construction or improvement services as described in subdivision 2new text begin must register with the
commissioner as provided in this section
new text end. The purpose of deleted text beginthe pilot project is to evaluate
whether the information obtained through registration assists
deleted text endnew text begin registration is to assist
new text end 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 beginThe commissioner shall issue a report to the legislature no later than
January 1, 2014, on recommendations for amendments to the registration program,
including reasonable registration fees to be used to aid in enforcing misclassification laws.
The commissioner must not charge a fee for registration under the pilot project, but may
take the enforcement action specified in subdivision 8a. The pilot project shall expire on
June 30, 2014, unless extended by the legislature.
deleted text end

(b) Except as provided in paragraph (c), any person who performs construction
services in the state on or after September 15, 2012, must register with the commissioner
as provided in deleted text beginsubdivision 5deleted text endnew text begin section 326B.701new text end before performing construction services for
another person. The requirements for registration under deleted text beginthis subdivisiondeleted text endnew text begin section 326B.701
new text end 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.

(c) The registration requirements in deleted text beginthis subdivisiondeleted text endnew text begin section 326B.701new text end do not apply to:

(1) a person who, at the time the person is performing the construction services,
holds a current license, certificate, or registration under chapter 299M or 326B;

(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 deleted text beginthisdeleted text end section new text begin326B.701 new text endno later than the date the exemption certificate
expires, is revoked, or is canceled;

(3) a person who has given a bond to the state under section 326B.197 or 326B.46;

(4) an employee of the person performing the construction services, if the person
was in compliance with laws related to employment of the individual at the time the
construction services were performed;

(5) an architect or professional engineer engaging in professional practice as defined
in section 326.02, subdivisions 2 and 3;

(6) a school district or technical college governed under chapter 136F;

(7) a person providing construction 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

(8) a person exempt from licensing under section 326B.805, subdivision 6, clause (5).

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read:


Subd. 5.

Registration application.

(a) Persons required to register under
deleted text beginsubdivision 4adeleted text endnew text begin section 326B.701new text end must submit electronically, in the manner prescribed by
the commissioner, a complete application according to paragraphs (b) to (d).

(b) A complete application must include all of the following information about 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:

(1) the individual's full legal name and title at the applicant's business;

(2) the individual's business address and telephone number;

(3) the percentage of the applicant's business owned by the individual; and

(4) the individual's Social Security number.

(c) A complete application must also include the following information:

(1) the applicant's legal name; assumed name filed with the secretary of state, if any;
designated business address; physical address; telephone number; and e-mail address;

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

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

(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;

(5) whether the applicant has any employees at the time the application is filed;

(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;

(7) information documenting compliance with workers' compensation and
unemployment insurance laws;

(8) a certification that the person signing the application has: reviewed it; determined
that the information provided is true and accurate; and determined that the person signing
is authorized to sign and file the application as an agent of the applicant. The name of the
person signing, entered on an electronic application, shall constitute a valid signature of
the agent on behalf of the applicant; and

(9) a signed authorization for the Department of Labor and Industry to verify the
information provided on or with the application.

(d) 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 business entity structure, legal form of the business entity, or business ownership has
changed, the person must submit a new registration application and registration fee, if
any, for the new business entity.

(e) The registered person must remain registered while providing construction
services for another person. The provisions of sections 326B.091 deleted text beginanddeleted text endnew text begin,new text end 326B.094 deleted text begintodeleted text endnew text begin,
326B.095, and
new text end 326B.097 apply to deleted text beginthisdeleted text end sectionnew text begin 326B.701new text end.new text begin A person with an expired
registration shall not provide construction services for another person if registration is
required under this section. Registration application and expiration time frames are as
follows:
new text end

new text begin (1) all registrations issued on or before June 30, 2015, expire on June 30, 2015;
new text end

new text begin (2) all registrations issued after June 30, 2015, expire on the following June 30
of each odd-numbered year; and
new text end

new text begin (3) a person may submit a registration or renewal application starting April 1 of the
year the registration expires. If a renewal application is submitted later than May 1 of
the expiration year, registration may expire before the department has issued or denied
the registration.
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. 16.

Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read:


Subd. 7.

Prohibited activitiesnew text begin related to independent contractor statusnew text end.

(a) The
prohibited activities in this subdivision are in addition to those prohibited in sections
326B.081 to 326B.085.

(b) An individual shall not hold himself or herself out as an independent contractor
unless the individual meets the requirements of subdivision 4.

(c) A person who provides construction services in the course of the person's trade,
business, occupation, or profession shall not:

(1) require an individual through coercion, misrepresentation, or fraudulent means to
adopt independent contractor status or form a business entity;

(2) knowingly misrepresent or misclassify an individual as an independent
contractordeleted text begin;deleted text endnew text begin.
new text end

new text begin Subd. 7a. new text end

new text begin Prohibited activities related to registration. new text end

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

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

deleted text begin (3)deleted text endnew text begin (1)new text end contract with or perform construction services for another person without first
being registered if required by deleted text beginsubdivision 4adeleted text endnew text begin section 326B.701new text end;

deleted text begin (4)deleted text endnew text begin (2)new text end contract with or pay another person to perform construction services if
the other person is not registered if required by subdivision 4a. All payments to an
unregistered person for construction services on a single project site shall be considered a
single violation. It is not a violation of this clause:

(i) for a person to contract with or pay an unregistered person if the unregistered
person was registered at the time the contract for construction services was entered into; or

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

deleted text begin (5)deleted text endnew text begin (3)new text end be penalized for violations of this subdivision that are committed by another
person. This clause applies only to violations of this paragraph.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read:


Subd. 8a.

Enforcement; remedies; and penalties.

new text begin(a) new text endNotwithstanding 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.

new text begin (b) The penalty for contracting with or paying an unregistered person to perform
construction services in violation of subdivision 7a, 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.
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. 18.

Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read:


Subd. 2.

new text beginPublic buildings and state-licensed facilities; new text endadministration by
commissioner.

new text beginUnless the commissioner has entered into an agreement under subdivision
2a or 2b,
new text endthe commissioner shall administer and enforce the State Building Code as a
municipality with respect to public buildings and statenew text begin-new text endlicensed facilities in the state.
The commissioner shall establish appropriate permit, plan review, inspection fees, and
surcharges for public buildings and statenew text begin-new text endlicensed facilities.

deleted text begin Municipalities other than the state having an agreement with the commissioner
for code administration and enforcement service for public buildings and state licensed
facilities shall charge their customary fees, including surcharge, to be paid directly to the
jurisdiction by the applicant seeking authorization to construct a public building or a state
licensed facility. The commissioner shall sign an agreement with a municipality other than
the state for plan review, code administration, and code enforcement service for public
buildings and state licensed facilities in the jurisdiction if the building officials of the
municipality meet the requirements of section 326B.133 and wish to provide those services
and if the commissioner determines that the municipality has enough adequately trained
and qualified building inspectors to provide those services for the construction project.
deleted text end

deleted text begin The commissioner may direct the state building official to assist a community that
has been affected by a natural disaster with building evaluation and other activities related
to building codes.
deleted text end

deleted text begin Administration and enforcement in a municipality under this section must apply
any optional provisions of the State Building Code adopted by the municipality. A
municipality adopting any optional code provision shall notify the state building official
within 30 days of its adoption.
deleted text end

deleted text begin The commissioner shall administer and enforce the provisions of the code relating to
elevators statewide, except as provided for under section 326B.184, subdivision 4.
deleted text end

Sec. 19.

Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Public buildings and state-licensed facilities; municipal agreement
for all building projects.
new text end

new text begin (a) The commissioner shall enter into an agreement with a
municipality other than the state for plan review, inspection, code administration, and
code enforcement on public buildings and state-licensed facilities in the jurisdiction if
the municipality requests to provide those services and the commissioner determines
that the municipality has enough adequately trained and qualified inspectors to provide
those services. In determining whether a municipality has enough adequately trained and
qualified inspectors to provide the service, the commissioner must consider all inspectors
who are employed by the municipality, are under contract with the municipality to provide
inspection services, or are obligated to provide inspection services to the municipality
under any other lawful agreement.
new text end

new text begin (b) The criteria used to make this determination shall be provided in writing to
the municipality requesting an agreement.
new text end

new text begin (c) If the commissioner determines that the municipality lacks enough adequately
trained and qualified inspectors to provide the required services, a written explanation of
the deficiencies shall be provided to the municipality.
new text end

new text begin (d) The municipality shall be given an opportunity to remedy any deficiencies
and request reconsideration of the commissioner's determination. A request for
reconsideration must be in writing and accompanied by substantiating documentation. A
request for reconsideration must be received by the commissioner within 90 days of the
determination explanation. The commissioner shall review the information and issue a
final determination to the municipality within 30 days of the request.
new text end

new text begin (e) A municipality aggrieved by a final decision of the commissioner to not enter into
an agreement may appeal to be heard as a contested case in accordance with chapter 14.
new text end

Sec. 20.

Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:


new text begin Subd. 2b. new text end

new text begin Public buildings and state-licensed facilities; municipal agreement
for certain building projects.
new text end

new text begin The commissioner shall enter into an agreement with a
municipality other than the state for inspection, code administration, and code enforcement
of reserved projects occurring on public buildings and state-licensed facilities in its
jurisdiction if the municipality has a designated building official as required by section
326B.133 and requests to provide those services.
new text end

new text begin For purposes of this subdivision, "reserved projects" includes the following:
new text end

new text begin (1) roof covering replacement that does not add roof load;
new text end

new text begin (2) towers requiring special inspection;
new text end

new text begin (3) single-level storage buildings not exceeding 5,000 square feet;
new text end

new text begin (4) exterior maintenance work, including replacement of siding, windows, and doors;
new text end

new text begin (5) HVAC unit replacement that does not add roof load or ventilation capacity;
new text end

new text begin (6) accessibility upgrades not involving building additions or structural alterations;
new text end

new text begin (7) remodeling that does not change the building's occupancy, structural system, exit
access or discharge pattern, or mechanical load; and
new text end

new text begin (8) other projects determined to be reserved by the commissioner.
new text end

Sec. 21.

Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:


new text begin Subd. 2c. new text end

new text begin Municipal fees. new text end

new text begin Municipalities other than the state having an agreement
under subdivision 2a with the commissioner for code administration and enforcement
service for public buildings and state-licensed facilities or inspecting under authority of
subdivision 2b shall charge their customary fees, including surcharge, to be paid directly
to the jurisdiction by the applicant seeking authorization to construct a public building or
a state-licensed facility.
new text end

Sec. 22.

Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:


new text begin Subd. 2d. new text end

new text begin Public buildings and state-licensed facilities; municipal obligation.
new text end

new text begin An agreement with the commissioner under subdivision 2a or 2b must require the
municipality to attend to applicable aspects of code administration and enforcement as
described in the agreement and established by rule.
new text end

Sec. 23.

Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:


new text begin Subd. 2e. new text end

new text begin Public buildings and state-licensed facilities; applicable code.
new text end

new text begin Administration and enforcement in a municipality under subdivisions 2a and 2b must
apply any optional provisions of the State Building Code adopted by the municipality. A
municipality adopting any optional code provision shall notify the state building official
within 30 days of its adoption.
new text end

Sec. 24.

Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:


new text begin Subd. 2f. new text end

new text begin Natural disasters. new text end

new text begin The commissioner may direct the state building
official to assist a community that has been affected by a natural disaster with building
evaluation and other activities related to building codes.
new text end

Sec. 25.

Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:


new text begin Subd. 2g. new text end

new text begin Elevators. new text end

new text begin The commissioner shall administer and enforce the provisions
of the code relating to elevators statewide, except as provided for under section 326B.184,
subdivision 4
.
new text end

Sec. 26.

new text begin [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION.
new text end

new text begin The following definition applies to this section: "business entity" means a person
other than an individual or a sole proprietor.
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. 27.

Minnesota Statutes 2012, section 326B.988, is amended to read:


326B.988 EXCEPTIONS.

(a) The provisions of sections 326B.93 to 326B.998 shall not apply to:

(1) boilers and pressure vessels in buildings occupied solely for residence purposes
with accommodations for not more than five families;

(2) railroad locomotives operated by railroad companies for transportation purposes;

(3) air tanks installed on the right-of-way of railroads and used directly in the
operation of trains;

(4) boilers and pressure vessels under the direct jurisdiction of the United States;

(5) unfired pressure vessels having an internal or external working pressure not
exceeding 15 psig with no limit on size;

(6) pressure vessels used for storage of compressed air not exceeding five cubic feet
in volume and equipped with an ASME code stamped safety valve set at a maximum of
100 psig;

(7) pressure vessels having an inside diameter not exceeding six inches;

(8) every vessel that contains water under pressure, including those containing air
that serves only as a cushion, whose design pressure does not exceed 300 psig and whose
design temperature does not exceed 210 degrees Fahrenheit;

(9) boiler or pressure vessels located on farms used solely for agricultural or
horticultural purposes; for purposes of this section, boilers used for mint oil extraction
are considered used for agricultural or horticultural purposes, provided that the owner or
lessee complies with the inspection requirements contained in section 326B.958;

(10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;

(11) unfired pressure vessels in petroleum refineries;

(12) an air tank or pressure vessel which is an integral part of a passenger motor
bus, truck, or trailer;

(13) hot water heating and other hot liquid boilers not exceeding a heat input of
750,000 BTU per hour;

(14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000
BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity
of 120 gallons, or a pressure of 160 psig;

(15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;

(16) pressure vessels operated full of water or other liquid not materially more
hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees
Fahrenheit or a pressure of 200 psig;

(17) steam-powered turbines at papermaking facilities which are powered by steam
generated by steam facilities at a remote location;

(18) manually fired boilers for model locomotive, boat, tractor, stationary engine,
or antique motor vehicles constructed or maintained only as a hobby for exhibition,
educational or historical purposes and not for commercial use, if the boilers have an
inside diameter of 12 inches or less, or a grate area of two square feet or less, and are
equipped with an ASME stamped safety valve of adequate size, a water level indicator,
and a pressure gauge;

(19) any pressure vessel used as an integral part of an electrical circuit breaker;

(20) pressure vessels used for the storage of refrigerant if they are built to ASME
code specifications, registered with the national board, and equipped with an ASME
code-stamped pressure-relieving device set no higher than the maximum allowable
working pressure of the vessel. This does not include pressure vessels used in ammonia
refrigeration systems;

(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide,
argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME
or Minnesota Department of Transportation specifications and equipped with an ASME
code-stamped pressure-relieving device. The owner of the vessels shall perform annual
visual inspections and planned maintenance on these vessels to ensure vessel integrity;

(22) pressure vessels used for the storage of compressed air for self-contained
breathing apparatuses;

(23) hot water heating or other hot liquid boilers vented directly to the atmosphere;
and

(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic
feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or
less.

(b) An engineer's license is not required for hot water supply boilers.

(c) An engineer's license and annual inspection by the department is not required
for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not
exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.

(d) Electric boilers not exceeding a maximum working pressure of 50 psig,
maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure
vessels and shall not require an engineer license to operate.

new text begin (e) Sawmills, located in a county with a population of less than 8,000 according to
the last federal census and that utilize steam for the drying of lumber, are not required to
meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part
5225.1180, only if all of the following conditions are met:
new text end

new text begin (1) the owner complies with the inspection requirements under section 326B.958,
and the licensing requirements under section 326B.972; and
new text end

new text begin (2) the boiler:
new text end

new text begin (i) is equipped with electronic control systems that are remotely operated but which
require on site manual reset of system faults;
new text end

new text begin (ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
new text end

new text begin (iii) has automatic safety mechanisms built into the remote monitoring systems that
send an alarm upon detection of a fault condition, and an on site alarm that will sound
upon detection of a fault condition and which may be heard at a distance of 500 feet;
new text end

new text begin (iv) has a water treatment program that is supervised by a third party water treatment
company; and
new text end

new text begin (v) is attended on site by a licensed boiler operator at least two times in a 24-hour
period. If the boiler is not attended more than twice in a 24-hour period, the period
between checks must not be less than eight hours.
new text end

new text begin This paragraph expires August 1, 2016.
new text end

Sec. 28. new text beginPLUMBING AT RESORTS; WORKGROUP.
new text end

new text begin The Department of Labor and Industry, in consultation with the Department of
Health, must convene a workgroup to provide recommendations to the legislature on the
requirements for plumbing at resorts classified as either class 1c or class 4c property under
Minnesota Statutes, section 273.13, and licensed by the Department of Health under
Minnesota Statutes, section 157.16. The Department must report its recommendations to
the legislature not later than January 1, 2015.
new text end

Sec. 29. new text beginHIGH PRESSURE BOILER RULES AND RECOMMENDATIONS;
APPROPRIATION.
new text end

new text begin $100,000 in fiscal year 2015 is appropriated from the general fund to the
commissioner of labor and industry to update and modernize rules related to high pressure
boilers. The commissioner must make recommendations by October 1, 2015, to the
committees of the house of representatives and senate with jurisdiction over construction
codes and licensing on changes related to boilers that operate at levels of 15 PSI or higher.
This is a onetime appropriation.
new text end

Sec. 30. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall replace the phrase "Division of Voluntary
Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 31. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the citations in column A with the citations
in column B. The revisor shall correct any cross-references required because of the
renumbering and may make necessary grammatical and technical changes, including
changes to sentence structure, to preserve the meaning of the text.
new text end

new text begin Column A
new text end
new text begin Column B
new text end
new text begin 326B.701
new text end
new text begin 326B.701, subd. 1, paragraphs (a)
and (b)
new text end
new text begin 181.723, subd. 1, paragraph (g)
new text end
new text begin 326B.701, subd. 1, paragraph (c)
new text end
new text begin 181.723, subd. 4a
new text end
new text begin 326B.701, subd. 2
new text end
new text begin 181.723, subd. 5
new text end
new text begin 326B.701, subd. 3
new text end
new text begin 181.723, subd. 5a
new text end
new text begin 326B.701, subd. 4
new text end
new text begin 181.723, subd. 7a
new text end
new text begin 326B.701, subd. 5
new text end
new text begin 181.723, subd. 8a
new text end
new text begin 326B.701, subd. 6
new text end
new text begin 181.723, subd. 10a
new text end
new text begin 326B.701, subd. 7
new text end
new text begin 181.723, subd. 16
new text end
new text begin 326B.701, subd. 8
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. 32. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and
178.08,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5,
7, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end