SF 2065

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/15/2014 09:55pm

1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 2065

1.2A bill for an act

1.3relating to labor and industry; extending an independent contractor registration
1.4pilot project; exempting certain sawmills from high pressure boiler attendance
1.5requirements;amending Minnesota Statutes 2012, sections 181.723, subdivisions
1.64, 4a, 5, 7; 326B.988; proposing coding for new law in Minnesota Statutes,
1.7chapter 326B.
1.8May 15, 2014
1.9The Honorable Sandra L. Pappas
1.10President of the Senate
1.11The Honorable Paul Thissen
1.12Speaker of the House of Representatives
1.13We, the undersigned conferees for S.F. No. 2065 report that we have agreed upon
1.14the items in dispute and recommend as follows:
1.15That the House recede from its amendments and that S.F. No. 2065 be further
1.16amended as follows:
1.17Delete everything after the enacting clause and insert:

1.18    "Section 1. [178.011] DEFINITIONS.
1.19    Subdivision 1. Scope. The terms defined in this section have the meanings given
1.20and apply to this chapter.
1.21    Subd. 2. Apprentice. "Apprentice" means a worker who is at least 16 years of
1.22age who is employed to learn an apprenticeable trade or occupation in a registered
1.23apprenticeship program under this chapter.
1.24    Subd. 3. Apprenticeship Advisory Board. "Apprenticeship Advisory Board" or
1.25"board" means the Apprenticeship Advisory Board established under section 178.02 and
1.26as an advisory State Apprenticeship Council as defined in Code of Federal Regulations,
1.27title 29, section 29.2.
1.28    Subd. 4. Apprenticeship program. "Apprenticeship program" means a program
1.29registered under this chapter that includes standards containing all terms and conditions
1.30for the qualification, recruitment, selection, employment, and training of apprentices,
2.1as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written
2.2apprenticeship agreement.
2.3    Subd. 5. Commissioner. "Commissioner" means the commissioner of labor and
2.4industry or a duly designated representative of the commissioner who is an employee
2.5of the department.
2.6    Subd. 6. Department. "Department" means the Department of Labor and Industry
2.7established under section 175.001.
2.8    Subd. 7. Division. "Division" means the department's Labor Standards and
2.9Apprenticeship Division, established under sections 175.16 and 178.03, and the State
2.10Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29,
2.11section 29.2.
2.12    Subd. 8. Employer. "Employer" means any person or organization employing
2.13an apprentice whether or not the person or organization is a party to an apprenticeship
2.14agreement with the apprentice.
2.15    Subd. 9. Journeyworker. "Journeyworker" means a person who has attained a level
2.16of skill, abilities, and competencies recognized within an industry as having mastered the
2.17skills and competencies required for the trade or occupation.
2.18    Subd. 10. Registered apprenticeship agreement. "Registered apprenticeship
2.19agreement" or "apprenticeship agreement" means a written agreement, complying with
2.20section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is
2.21a minor, the minor's parent or guardian, which contains the terms and conditions of the
2.22employment and training of the apprentice.
2.23    Subd. 11. Related instruction. "Related instruction" means an organized and
2.24systematic form of instruction designed to provide the apprentice with the knowledge of
2.25the theoretical and technical subjects related to the apprentice's trade or occupation. The
2.26instruction may be given in a classroom through trade, occupational, or industrial courses
2.27or, when of equivalent value, by correspondence, electronic media, or other forms of
2.28self-study approved by the commissioner.
2.29    Subd. 12. Sponsor. "Sponsor" means an employer, employer association, or
2.30apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29,
2.31section 29.2, that operates an apprenticeship program and in whose name the program is
2.32or is to be registered or approved.
2.33EFFECTIVE DATE.This section is effective January 1, 2015.

2.34    Sec. 2. [178.012] UNIFORMITY WITH FEDERAL LAW.
3.1    Subdivision 1. Apprenticeship rules. Federal regulations governing apprenticeship
3.2in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29,
3.3sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to
3.4amendment by this chapter or by rule under section 178.041.
3.5    Subd. 2. State Apprenticeship Agency. The commissioner shall take all necessary
3.6steps as permitted by law to obtain and maintain the status of the division as a State
3.7Apprenticeship Agency recognized by the United States Department of Labor under Code
3.8of Federal Regulations, title 29, part 29, section 29.13.
3.9EFFECTIVE DATE.This section is effective January 1, 2015.

3.10    Sec. 3. Minnesota Statutes 2012, section 178.02, is amended to read:
3.11178.02 APPRENTICESHIP ADVISORY BOARD.
3.12    Subdivision 1. Members. The commissioner of labor and industry, hereinafter
3.13called the commissioner, shall appoint an Apprenticeship Board, hereinafter referred
3.14to as the board, composed of three representatives each from employer and employee
3.15organizations, and two representatives of the general public. The director A designee of
3.16the commissioner of education responsible for career and technical education or designee
3.17shall be an ex officio member of the board and shall serve in an advisory capacity only.
3.18    Subd. 2. Terms. The board shall not expire. The terms, compensation, and removal
3.19of appointed members shall be as provided in section 15.059.
3.20    Subd. 4. Duties. The board shall meet at the call of the commissioner and
3.21shall advise the commissioner about matters relating to this chapter. It shall propose
3.22occupational classifications for apprenticeship programs; propose minimum standards for
3.23apprenticeship programs and agreements; and advise on the establishment of such policies,
3.24procedures, and rules as the board or commissioner deems necessary in implementing
3.25the intent of this chapter.
3.26EFFECTIVE DATE.This section is effective January 1, 2015.

3.27    Sec. 4. Minnesota Statutes 2012, section 178.03, is amended to read:
3.28178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP.
3.29    Subdivision 1. Establishment of division. There is established a Division of Labor
3.30Standards and Apprenticeship in the Department of Labor and Industry. This division
3.31shall be administered by a director, and be under the supervision of the commissioner of
3.32labor and industry, hereinafter referred to as the commissioner.
4.1    Subd. 2. Director of labor standards and apprenticeship. The commissioner
4.2shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter
4.3referred to as the director, and may appoint and employ such clerical, technical, and
4.4professional help as is necessary to accomplish the purposes of this chapter. The director
4.5and division staff shall be appointed and shall serve in the classified service pursuant to
4.6civil service law and rules.
4.7    Subd. 3. Duties and functions. The director, under the supervision of the
4.8commissioner, and with the advice and consultation of the Apprenticeship Board, is
4.9authorized: to administer the provisions of this chapter; to promote apprenticeship and
4.10other forms of on-the-job learning; to establish, in cooperation and consultation with the
4.11Apprenticeship Board and with the apprenticeship committees, conditions, training, and
4.12learning standards for the approval of apprenticeship programs and agreements, which
4.13conditions and standards shall in no case be lower than those (1) prescribed by this chapter,
4.14and (2) established under The division shall be administered as prescribed by this chapter
4.15and in accordance with Code of Federal Regulations, title 29, part 29; to promote equal
4.16employment opportunity in apprenticeship and other on-the-job learning and to establish
4.17a Minnesota plan for equal employment opportunity in apprenticeship which shall be
4.18consistent with standards established under Code of Federal Regulations, title 29, part 30,
4.19as amended; to issue certificates of registration to sponsors of approved apprenticeship
4.20programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion
4.21that approval is for the best interest of the apprentice, any apprenticeship agreement which
4.22meets the standards established hereunder; to terminate any apprenticeship agreement in
4.23accordance with the provisions of such agreement; to keep a record of apprenticeship
4.24agreements and their disposition; to issue certificates of completion of apprenticeship;
4.25and to perform such other duties as the commissioner deems necessary to carry out the
4.26intent of this chapter; provided, that the administration and supervision of supplementary
4.27instruction in related subjects for apprentices; coordination of instruction on a concurrent
4.28basis with job experiences, and the selection and training of teachers and coordinators
4.29for such instruction shall be the function of state and local boards responsible for
4.30vocational education. The director division shall have the authority to make wage
4.31determinations applicable to the graduated schedule of wages and journeyworker wage
4.32rate for apprenticeship agreements, giving consideration to the existing wage rates
4.33prevailing throughout the state, except that no wage determination by the director shall
4.34alter an existing wage provision for apprentices or journeyworkers that is contained in a
4.35bargaining agreement in effect between an employer and an organization of employees,
5.1nor shall the director make any determination for the beginning rate for an apprentice that
5.2is below the wage minimum established by federal or state law.
5.3    Subd. 4. Reciprocity approval. The director commissioner, if requested by a
5.4sponsoring entity program sponsor, shall grant reciprocity approval to apprentices,
5.5apprenticeship programs of employers and unions who jointly form a sponsoring entity
5.6on a multistate basis in other than the building construction industry if such programs
5.7are in conformity with this chapter and have been registered in compliance with Code
5.8of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized
5.9by or registered with the United States Department of Labor, Office of Apprenticeship,
5.10when such approval is necessary for federal purposes under Code of Federal Regulations,
5.11title 29, section 29.13(a) or 29.13(b)(7), and standards that are registered in other states.
5.12Program sponsors seeking reciprocal approval must meet the requirements of this chapter
5.13including the wage and hour provisions and apprentice ratio standards.
5.14EFFECTIVE DATE.This section is effective January 1, 2015.

5.15    Sec. 5. [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.
5.16    Subdivision 1. Application. To apply for the registration of an apprenticeship
5.17program, a sponsor shall submit a completed application to the division on a form provided
5.18by the commissioner, which shall include standards of apprenticeship that comply with the
5.19requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.
5.20    Subd. 2. Provisional approval. The division shall grant a provisional approval
5.21period of one year to an applicant demonstrating that the standards submitted meet the
5.22requirements of this chapter. The division may review each program granted provisional
5.23approval for quality and for conformity with the requirements of this section and section
5.24178.036 at any time, but not less than biannually, during the provisional approval period.
5.25After review:
5.26(1) a program that conforms with the requirements of this chapter:
5.27(i) may be approved; or
5.28(ii) may continue to be provisionally approved through the first full training cycle; and
5.29(2) a program not in operation or not conforming with the requirements of this
5.30chapter during the provisional approval period shall be deregistered.
5.31The division shall inform the applicant of the results of its review in writing at least 30
5.32days prior to the expiration of the provisional approval period.
5.33    Subd. 3. Review. The division shall review all programs for quality and for
5.34conformity with the requirements of this chapter at the end of the first full training
5.35cycle. Subsequent review of a registered program must be conducted at least annually.
6.1Programs not in operation or not conforming to this chapter at the time of review may be
6.2recommended for deregistration.
6.3    Subd. 4. Program modification. To apply for modification of or change to a
6.4registered program, a sponsor shall submit a written request for modification to the
6.5division. The division shall approve or disapprove a modification request within 90 days
6.6from the date of receipt. If approved, the modification or change must be recorded and
6.7acknowledged within 90 days of its approval as an amendment to the registered program.
6.8If not approved, the division shall notify the sponsor in writing of the disapproval and the
6.9reasons for the disapproval. The division may provide technical assistance to a sponsor
6.10seeking to modify or change a registered program.
6.11    Subd. 5. Notice. When an application is submitted under subdivision 1 by an
6.12employer or employers' association, and where the standards, collective bargaining
6.13agreement, or other instrument provides for participation by a union in any manner in the
6.14operation of the substantive matters of the apprenticeship program, and the participation
6.15is exercised, a written acknowledgment of the union's agreement or a written statement
6.16specifying that the union has no objection to the registration is required. Where no union
6.17participation is evidenced and practiced, the employer or employers' association shall
6.18simultaneously furnish to the union, if any, which functions as the collective bargaining
6.19agent of the employees to be trained, a copy of its application for registration and the
6.20apprenticeship program. The commissioner shall provide a reasonable time of not less
6.21than 30 days nor more than 60 days for receipt of union comments, if any, before final
6.22action on the application for registration is taken. Union comments must be submitted to
6.23the division during the time period specified by the commissioner.
6.24    Subd. 6. Certificate. Upon registration of a program, the commissioner shall issue a
6.25certificate of registration to the sponsor. Within 30 days after the certificate is mailed or
6.26otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of
6.27at least one executed apprenticeship agreement.
6.28    Subd. 7. Policy requirement. It must be the policy of the employer and sponsor
6.29that the recruitment, selection, employment, and training of apprentices during their
6.30apprenticeship must be without discrimination due to race, color, creed, religion, national
6.31origin, sex, sexual orientation, marital status, physical or mental disability, receipt of
6.32public assistance, or age. The employer and sponsor must take affirmative action to
6.33provide equal opportunity in apprenticeship and must operate the apprenticeship program
6.34as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota
6.35plan for equal opportunity in apprenticeship.
6.36EFFECTIVE DATE.This section is effective January 1, 2015.

7.1    Sec. 6. [178.036] STANDARDS OF APPRENTICESHIP.
7.2    Subdivision 1. Federal uniformity. Each program must have an organized, written
7.3plan of program standards embodying the terms and conditions of employment, training,
7.4and supervision of one or more apprentices in an apprenticeable trade or occupation, as
7.5defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by
7.6a sponsor and employer who has undertaken to carry out the apprentice training program.
7.7The program standards must contain the provisions that address each item identified in
7.8Code of Federal Regulations, title 29, part 29, section 29.5(b).
7.9    Subd. 2. Standards. (a) In addition to the requirements in subdivision 1, the
7.10program standards must also contain provisions in compliance with paragraphs (b) to (k):
7.11(b) Related instruction. A minimum of 144 hours of related instruction is required
7.12in each training cycle. At least 50 hours of related safety instruction is required during the
7.13term of apprenticeship. Time spent in related instruction cannot be considered as hours of
7.14work as required by the job process schedule. Every apprenticeship instructor must meet
7.15the Department of Education's requirements for a vocational-technical instructor or be a
7.16subject matter expert, which is an individual such as a journeyworker who is recognized
7.17within an industry as having expertise in a specific trade or occupation.
7.18(c) Job process schedule. Each time-based apprenticeship program must include
7.19not less than 2,000 hours of reasonably continuous employment.
7.20(d) Ratios. If the apprentice is covered by a collective bargaining agreement, the
7.21employer must follow the provisions of the collective bargaining agreement regarding the
7.22maximum number of apprentices to be employed at the work site for each journeyworker
7.23employed at the same work site. In the absence of a collective bargaining agreement, for
7.24the purposes of direct supervision and the safety and instruction of the apprentice, the
7.25ratio shall be:
7.26(1) one apprentice for the first journeyworker employed at the work site plus one
7.27apprentice for each additional three journeyworkers employed at the work site;
7.28(2) the work site ratio utilized by the majority of registered apprenticeship
7.29agreements in the same trade or occupation; or
7.30(3) a program-specific ratio that has been approved by the Apprenticeship Advisory
7.31Board.
7.32(e) Graduated schedule of wages. The graduated schedule of wages for an
7.33apprenticeship program shall be calculated as a percentage of the journeyworker rate in
7.34the majority of registered apprenticeship agreements in the same trade or occupation in the
7.35state. If there are no registered apprenticeship agreements in the same trade or occupation,
7.36the graduated schedule of wages may be determined by the sponsor.
8.1(f) Probationary period. The standards must provide a period of probation of not
8.2more than 500 hours of employment and instruction extending over not more than four
8.3months, during which time the apprenticeship agreement shall be terminated by the director
8.4upon written request of either party, and providing that after such probationary period the
8.5apprenticeship agreement may be terminated by the director by mutual agreement of all
8.6parties thereto, or terminated by the director for good and sufficient reason.
8.7(g) Dispute resolution. The program standards must include a provision that
8.8controversies or differences concerning the terms of the apprenticeship agreement which
8.9cannot be resolved by the parties thereto, or which are not covered by a collective
8.10bargaining agreement, may be submitted to the commissioner for determination as
8.11provided for in section 178.09.
8.12(h) Term of apprenticeship. The term of apprenticeship may be measured either
8.13through:
8.14(1) the time-based approach, which requires completion of at least 2,000 work
8.15hours of on-the-job training;
8.16(2) the competency-based approach, which requires the attainment of competency; or
8.17(3) the hybrid approach, which is a blend of the time-based and competency-based
8.18approaches.
8.19(i) Training cycle. The training cycle for related instruction must be designated in
8.20hours, days, or months for each individual trade or occupation included in the standards.
8.21(j) Responsibilities of the apprentice. An apprentice employed under the program
8.22standards shall agree to be punctual and regular in attendance, and to endeavor to the best
8.23of the apprentice's ability to perfect the required skills for the trade or occupation.
8.24(k) Coordination of apprentices. The sponsor shall designate a qualified individual
8.25as a coordinator of apprentices who shall:
8.26(1) maintain an adequate record of progress in training each apprentice;
8.27(2) be responsible for assuring that the requirements of the applicable learning
8.28program are met during the prescribed training term; and
8.29(3) perform other duties as may be assigned by the sponsor relative to the
8.30development and operation of an effective program of apprenticeship.
8.31EFFECTIVE DATE.This section is effective January 1, 2015.

8.32    Sec. 7. Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read:
8.33    Subd. 2. Chapter 14 applies. Rules, modifications, amendments, and repeals
8.34thereof which may be issued by the commissioner under this section chapter shall be
8.35adopted in accordance with chapter 14 and shall have the force and effect of law.
9.1EFFECTIVE DATE.This section is effective January 1, 2015.

9.2    Sec. 8. [178.044] DETERMINATION OF APPRENTICE WAGES.
9.3    Subdivision 1. Maximum hours. The maximum number of hours of work per week
9.4shall not exceed either the number prescribed by law or the customary regular number of
9.5hours per week for the employees of the company by which the apprentice is employed.
9.6Time spent in related and supplemental instruction for any apprentice shall not be included
9.7in the maximum number of hours of work per workweek.
9.8    Subd. 2. Overtime. An apprentice may be allowed to work overtime provided that
9.9the overtime work does not conflict with related instruction course attendance. All time
9.10in excess of the number of hours of work per week as specified in the apprenticeship
9.11agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
9.12be increased by the same percentage as the journeyworker's rate of pay for overtime is
9.13increased in the same industry or establishment.
9.14    Subd. 3. Journeyworker wage rate. If the apprentice is not covered by a collective
9.15bargaining agreement, the journeyworker wage rate upon which the apprentice agreement
9.16graduated schedule of wages is calculated shall be:
9.17(1) the most current Minnesota state prevailing wage rate determination for the
9.18same trade or occupation in the county in which the apprentice's employer is located. If
9.19an apprenticeship agreement entered into after January 1, 2015, does not specify fringe
9.20benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated
9.21must be the total rate listed in the wage determination; or
9.22(2) if there is no Minnesota prevailing wage rate determination for the same trade or
9.23occupation in the county in which the apprentice's employer is located, the journeyworker
9.24wage may be determined by the sponsor with the approval of the division.
9.25EFFECTIVE DATE.This section is effective January 1, 2015.

9.26    Sec. 9. Minnesota Statutes 2012, section 178.07, is amended to read:
9.27178.07 REGISTERED APPRENTICESHIP AGREEMENTS.
9.28    Subdivision 1. Approval required. All terminations, cancellations, and transfers of
9.29apprenticeship agreements shall be approved by the division in writing. The division must
9.30be notified in writing by the sponsor within 45 days of all terminations, cancellations,
9.31or transfer of apprenticeship agreements.
9.32    Subd. 2. Signatures required. Apprenticeship agreements shall be signed by
9.33the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal
10.1guardian. When a minor enters into an apprenticeship agreement under this chapter for a
10.2period of learning extending into majority, the apprenticeship agreement shall likewise be
10.3binding for such a period as may be covered during the apprentice's majority.
10.4    Subd. 3. Contents. Every apprenticeship agreement entered into under this chapter
10.5shall contain:
10.6(1) the names of the contracting parties, and the signatures required by subdivision 1;
10.7(2) the date of birth, and information as to the race and sex of the apprentice, and, on
10.8a voluntary basis, the apprentice's Social Security number;
10.9(3) a statement of the trade, craft, occupation, or business which the apprentice is to
10.10be taught, and the time at which the apprenticeship will begin and end;
10.11(3) contact information of the sponsor and the division;
10.12(4) a statement showing of the trade or occupation which the apprentice is to be
10.13taught, the date on which the apprenticeship will begin, and the number of hours to be
10.14spent by the apprentice in work and the number of hours to be spent in concurrent,
10.15supplementary instruction in related subjects, which instruction shall be not less than 144
10.16hours during each year of the apprenticeship term. The maximum number of hours of
10.17work per week not including time spent in related and supplemental instruction for any
10.18apprentice shall not exceed either the number prescribed by law or the customary regular
10.19number of hours per week for the employees of the company by which the apprentice is
10.20employed. An apprentice may be allowed to work overtime provided that the overtime
10.21work does not conflict with supplementary instruction course attendance. All time in
10.22excess of the number of hours of work per week as specified in the apprenticeship
10.23agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
10.24be increased by the same percentage as the journeyworker's rate of pay for overtime is
10.25increased in the same industry or establishment related instruction;
10.26(5) a statement setting forth a schedule of the processes in the trade, occupation,
10.27or industry divisions in which the apprentice is to be taught and the approximate time to
10.28be spent at each process;
10.29(6) (5) a statement of the graduated scale of wages to be paid the apprentice
10.30and whether the required school time shall be compensated under sections 178.036,
10.31subdivision 2, paragraph (e), and 178.044, as applicable;
10.32(7) (6) a statement providing for a period of probation of not more than 500 hours
10.33of employment and instruction extending over not more than four months, during which
10.34time the apprenticeship agreement shall be terminated by the director upon written request
10.35of either party, and providing that after such probationary period the apprenticeship
10.36agreement may be terminated by the director by mutual agreement of all parties thereto,
11.1or terminated by the director for good and sufficient reason listing any fringe benefits
11.2to be provided to the apprentice;
11.3(8) a provision that controversies or differences concerning the terms of the
11.4apprenticeship agreement which cannot be resolved by the parties thereto, or which are
11.5not covered by a collective bargaining agreement, may be submitted to the director for
11.6determination as provided for in section 178.09;
11.7(9) a provision that an employer who is unable to fulfill an obligation under the
11.8apprenticeship agreement may, with the approval of the director, transfer such contract to
11.9any other employer, provided that the apprentice consents and that such other employer
11.10agrees to assume the obligations of the apprenticeship agreement; and
11.11(7) a statement incorporating as part of the agreement the registered standards of
11.12the apprenticeship program on the date of the agreement and as they may be amended
11.13during the period of the agreement;
11.14(8) a statement that the apprentice will be accorded equal opportunity in all phases
11.15of apprenticeship employment and training, without discrimination due to race, color,
11.16creed, religion, national origin, sex, sexual orientation, marital status, physical or mental
11.17disability, receipt of public assistance, or age; and
11.18(10) (9) such additional terms and conditions as may be prescribed or approved by
11.19the director commissioner not inconsistent with the provisions of this chapter.
11.20EFFECTIVE DATE.This section is effective January 1, 2015.

11.21    Sec. 10. Minnesota Statutes 2012, section 178.09, is amended to read:
11.22178.09 INVESTIGATIONS BY DIRECTOR AND ENFORCEMENT OF
11.23APPRENTICESHIP AGREEMENTS.
11.24    Subdivision 1. Complaint. Upon the complaint of any interested person or upon the
11.25director's division's own initiative, the director division may investigate to determine if
11.26there has been a violation of the terms of an apprenticeship agreement made under this
11.27chapter. Complaints must be made in writing within 60 days of the events giving rise to the
11.28complaint and must set forth the specific matters complained of together with relevant facts
11.29and circumstances. Copies of pertinent documents and correspondence must accompany
11.30the complaint. The director division may conduct such proceedings as are necessary for
11.31that investigation and determination. All such proceedings shall be on a fair and impartial
11.32basis and shall be conducted according to rules promulgated under section 178.041.
11.33    Subd. 2. Determination; appeal. Within 90 days after the receipt of a complaint,
11.34the division must issue a determination. The determination of the director division shall
12.1be filed with the commissioner and written notice shall be served on all parties affected
12.2by it. Any person aggrieved by any determination or action of the director may appeal
12.3to the commissioner. If no appeal is filed with the commissioner within ten days of the
12.4date of service, the director's division's determination shall become the final order of the
12.5commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing
12.6board to be composed of three members of the Apprenticeship Advisory Board appointed
12.7under section 178.02, one member being a representative of an employer organization, one
12.8representative being a member of an employee organization, and one member representing
12.9the general public. The board shall hold a hearing on the appeal after due notice to the
12.10interested parties and shall submit to the commissioner findings of fact and a recommended
12.11decision accompanied by a memorandum of the reasons for it. Within 30 days after
12.12submission, the commissioner may adopt the recommended decision of the board, or
12.13disregard the recommended decision of the board and prepare a decision based on the
12.14findings of fact and accompanied by a memorandum of reasons for that decision. Written
12.15notice of the commissioner's determination and order shall be served on all parties affected
12.16by it. Any person aggrieved or affected by any the commissioner's determination or order
12.17of the commissioner may appeal from it to the district court having jurisdiction at any time
12.18within 30 days after the date of the order by service of a written notice of appeal on the
12.19commissioner. Upon service of the notice of appeal, the commissioner shall file with the
12.20court administrator of the district court to which the appeal is taken a certified copy of the
12.21order appealed from, together with findings of fact on which it is based. The person serving
12.22a notice of appeal shall, within five days after its service, file it, with proof of service, with
12.23the court administrator of the court to which the appeal is taken. The district court shall
12.24then have jurisdiction over the appeal and it shall be entered in the records of the district
12.25court and tried de novo according to the applicable rules. Any person aggrieved or affected
12.26by any determination, order, or decision of the district court may appeal as in other civil
12.27cases and order under this section is entitled to judicial review under sections 14.63 to
12.2814.68 in the same manner that a person aggrieved by a final decision in a contested case is
12.29entitled to judicial review. The commissioner's determination and order under this section
12.30shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.
12.31    Subd. 3. Service. Service under this chapter may be by certified first class mail,
12.32personal service, or in accordance with any consent to service filed with the commissioner.
12.33Service by mail shall be accomplished in the manner provided in Minnesota Rules, part
12.341400.5550, subpart 2. Personal service shall be accomplished in the manner provided in
12.35Minnesota Rules, part 1400.5550, subpart 3.
12.36EFFECTIVE DATE.This section is effective January 1, 2015.

13.1    Sec. 11. [178.091] INVESTIGATIONS AND ENFORCEMENT;
13.2APPRENTICESHIP PROGRAMS AND STANDARDS.
13.3    Subdivision 1. Investigations. In order to carry out the purposes of this chapter,
13.4the commissioner may investigate registered apprenticeship programs and applicants
13.5for program registration to determine whether there are any grounds for deregistration
13.6of a registered program or for the denial of an application. Persons requested by the
13.7commissioner to provide information or produce documents shall respond within 30 days
13.8of the commissioner's service of the request.
13.9    Subd. 2. Grounds. (a) The commissioner may deregister a registered apprenticeship
13.10program or deny an application for registration if:
13.11(1) the program does not comply with any requirement of Code of Federal
13.12Regulations, title 29, part 29 or 32, this chapter, or any rule adopted pursuant to section
13.13178.041;
13.14(2) the program does not have at least one registered apprentice in each trade or
13.15occupation, except for the following specified periods of time:
13.16(i) within the first 30 days after the date a program is registered; or
13.17(ii) within one year of the date that a program graduates an apprentice in a trade or
13.18occupation and the date of registration for the next apprentice in that trade or occupation; or
13.19(3) the program is not conducted, operated, or administered in accordance with
13.20the program's registered standards or with the requirements of this chapter, including
13.21but not limited to:
13.22(i) failure to provide on-the-job learning;
13.23(ii) failure to provide related instruction;
13.24(iii) failure of an employer to pay the apprentice a progressively increasing schedule
13.25of wages consistent with the apprentice's skills acquired; or
13.26(iv) persistent and significant failure to perform successfully.
13.27(b) The commissioner may deregister an apprenticeship program at the written
13.28request of the sponsor in a manner consistent with the provisions of Code of Federal
13.29Regulations, title 29, part 29, section 29.8(a).
13.30    Subd. 3. Reinstatement. If the commissioner deregisters a registered apprenticeship
13.31program, the sponsor may request reinstatement not before one year after the effective
13.32date of the deregistration. The commissioner may, as a condition of reinstatement, require
13.33the sponsor to comply with reasonable conditions the commissioner considers necessary
13.34to effectuate the purposes of this chapter.
13.35    Subd. 4. Orders; hearings related to orders. (a) If the commissioner determines
13.36that a registered apprenticeship program should be deregistered or that an application for
14.1registration should be denied, the commissioner shall issue to and serve on the sponsor an
14.2order deregistering the program's registration or denying the application for registration.
14.3(b) An order issued under this subdivision must specify:
14.4(1) the deficiency and the required remedy or corrective action;
14.5(2) the time period to effectuate the required remedy or corrective action, which
14.6shall be no more than 90 days; and
14.7(3) any other requirement consistent with Code of Federal Regulations, title 29,
14.8part 29, section 29.8(b).
14.9(c) The sponsor to whom the commissioner issues an order under this subdivision
14.10may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.
14.11EFFECTIVE DATE.This section is effective January 1, 2015.

14.12    Sec. 12. Minnesota Statutes 2012, section 178.10, is amended to read:
14.13178.10 LIMITATION.
14.14(a) The provisions of this chapter shall have no application to those infants
14.15 individuals who are apprenticed by the commissioner of corrections pursuant to sections
14.16242.43 and 242.44.
14.17(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:
14.18(1) any apprenticeship provision in any collective bargaining agreement between
14.19employers and employees establishing higher apprenticeship standards; or
14.20(2) any special provision for veterans, minority persons, or women, in the standards,
14.21apprentice qualifications, or operation of the program or in the apprenticeship agreement
14.22which is not otherwise prohibited by law.
14.23EFFECTIVE DATE.This section is effective January 1, 2015.

14.24    Sec. 13. Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read:
14.25    Subd. 4. Independent contractor. (a) An individual is an independent contractor
14.26and not an employee of the person for whom the individual is performing services in the
14.27course of the person's trade, business, profession, or occupation only if the individual is
14.28registered with the Department of Labor and Industry, if required under subdivision 4a,
14.29and the individual:
14.30(1) maintains a separate business with the individual's own office, equipment,
14.31materials, and other facilities;
15.1(2)(i) holds or has applied for a federal employer identification number or (ii) has
15.2filed business or self-employment income tax returns with the federal Internal Revenue
15.3Service if the individual has performed services in the previous year;
15.4(3) is operating under contract to perform the specific services for the person
15.5for specific amounts of money and under which the individual controls the means of
15.6performing the services;
15.7(4) is incurring the main expenses related to the services that the individual is
15.8performing for the person under the contract;
15.9(5) is responsible for the satisfactory completion of the services that the individual
15.10has contracted to perform for the person and is liable for a failure to complete the services;
15.11(6) receives compensation from the person for the services performed under the
15.12contract on a commission or per-job or competitive bid basis and not on any other basis;
15.13(7) may realize a profit or suffer a loss under the contract to perform services for
15.14the person;
15.15(8) has continuing or recurring business liabilities or obligations; and
15.16(9) the success or failure of the individual's business depends on the relationship of
15.17business receipts to expenditures.
15.18An individual who is not registered, if required by section 326B.701, is presumed to
15.19be an employee of a person for whom the individual performs services in the course of
15.20the person's trade, business, profession, or occupation. The person for whom the services
15.21were performed may rebut this presumption by showing that the unregistered individual
15.22met all nine factors in this paragraph at the time the services were performed.
15.23(b) If an individual is an owner or partial owner of a business entity, the individual is
15.24an employee of the person for whom the individual is performing services in the course
15.25of the person's trade, business, profession, or occupation, and is not an employee of the
15.26business entity in which the individual has an ownership interest, unless:
15.27(1) the business entity meets the nine factors in paragraph (a);
15.28(2) invoices and payments are submitted in the name of the business entity; and
15.29(3) the business entity is registered with the secretary of state, if required; and.
15.30(4) the business entity is registered with the Department of Labor and Industry,
15.31if required under subdivision 4a.
15.32If the business entity in which the individual has an ownership interest is not
15.33registered, if required by section 326B.701, the individual is presumed to be an employee
15.34of a person for whom the individual performs services and not an employee of the business
15.35entity in which the individual has an ownership interest. The person for whom the services
16.1were performed may rebut the presumption by showing that the business entity met the
16.2requirements of clauses (1) to (3) at the time the services were performed.
16.3EFFECTIVE DATE.This section is effective the day following final enactment.

16.4    Sec. 14. Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read:
16.5    Subd. 4a. Applicability; registration pilot project requirement. (a) The
16.6commissioner shall implement a pilot project, effective July 1, 2012, for the registration
16.7of Persons who perform public or private sector commercial or residential building
16.8construction or improvement services as described in subdivision 2 must register with the
16.9commissioner as provided in this section. The purpose of the pilot project is to evaluate
16.10whether the information obtained through registration assists registration is to assist
16.11 the Department of Labor and Industry, the Department of Employment and Economic
16.12Development, and the Department of Revenue to enforce laws related to misclassification
16.13of employees. The commissioner shall issue a report to the legislature no later than
16.14January 1, 2014, on recommendations for amendments to the registration program,
16.15including reasonable registration fees to be used to aid in enforcing misclassification laws.
16.16The commissioner must not charge a fee for registration under the pilot project, but may
16.17take the enforcement action specified in subdivision 8a. The pilot project shall expire on
16.18June 30, 2014, unless extended by the legislature.
16.19(b) Except as provided in paragraph (c), any person who performs construction
16.20services in the state on or after September 15, 2012, must register with the commissioner
16.21as provided in subdivision 5 section 326B.701 before performing construction services for
16.22another person. The requirements for registration under this subdivision section 326B.701
16.23 are not a substitute for, and do not relieve a person from complying with, any other law
16.24requiring that the person be licensed, registered, or certified.
16.25(c) The registration requirements in this subdivision section 326B.701 do not apply to:
16.26(1) a person who, at the time the person is performing the construction services,
16.27holds a current license, certificate, or registration under chapter 299M or 326B;
16.28(2) a person who holds a current independent contractor exemption certificate
16.29issued under this section that is in effect on September 15, 2012, except that the person
16.30must register under this section 326B.701 no later than the date the exemption certificate
16.31expires, is revoked, or is canceled;
16.32(3) a person who has given a bond to the state under section 326B.197 or 326B.46;
16.33(4) an employee of the person performing the construction services, if the person
16.34was in compliance with laws related to employment of the individual at the time the
16.35construction services were performed;
17.1(5) an architect or professional engineer engaging in professional practice as defined
17.2in section 326.02, subdivisions 2 and 3;
17.3(6) a school district or technical college governed under chapter 136F;
17.4(7) a person providing construction services on a volunteer basis, including but not
17.5limited to Habitat for Humanity and Builders Outreach Foundation, and their individual
17.6volunteers when engaged in activities on their behalf; or
17.7(8) a person exempt from licensing under section 326B.805, subdivision 6, clause (5).
17.8EFFECTIVE DATE.This section is effective the day following final enactment.

17.9    Sec. 15. Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read:
17.10    Subd. 5. Registration application. (a) Persons required to register under
17.11subdivision 4a section 326B.701 must submit electronically, in the manner prescribed by
17.12the commissioner, a complete application according to paragraphs (b) to (d).
17.13    (b) A complete application must include all of the following information about any
17.14individual who is registering as an individual or a sole proprietor, or who owns 25 percent
17.15or more of a business entity being registered:
17.16    (1) the individual's full legal name and title at the applicant's business;
17.17    (2) the individual's business address and telephone number;
17.18    (3) the percentage of the applicant's business owned by the individual; and
17.19    (4) the individual's Social Security number.
17.20(c) A complete application must also include the following information:
17.21(1) the applicant's legal name; assumed name filed with the secretary of state, if any;
17.22designated business address; physical address; telephone number; and e-mail address;
17.23(2) the applicant's Minnesota tax identification number, if one is required or has
17.24been issued;
17.25(3) the applicant's federal employer identification number, if one is required or
17.26has been issued;
17.27(4) evidence of the active status of the applicant's business filings with the secretary
17.28of state, if one is required or has been issued;
17.29(5) whether the applicant has any employees at the time the application is filed;
17.30(6) the names of all other persons with an ownership interest in the business entity
17.31who are not identified in paragraph (b), and the percentage of the interest owned by each
17.32person, except that the names of shareholders with less than ten percent ownership in a
17.33publicly traded corporation need not be provided;
17.34(7) information documenting compliance with workers' compensation and
17.35unemployment insurance laws;
18.1(8) a certification that the person signing the application has: reviewed it; determined
18.2that the information provided is true and accurate; and determined that the person signing
18.3is authorized to sign and file the application as an agent of the applicant. The name of the
18.4person signing, entered on an electronic application, shall constitute a valid signature of
18.5the agent on behalf of the applicant; and
18.6(9) a signed authorization for the Department of Labor and Industry to verify the
18.7information provided on or with the application.
18.8(d) A registered person must notify the commissioner within 15 days after there is a
18.9change in any of the information on the application as approved. This notification must
18.10be provided electronically in the manner prescribed by the commissioner. However, if
18.11the business entity structure, legal form of the business entity, or business ownership has
18.12changed, the person must submit a new registration application and registration fee, if
18.13any, for the new business entity.
18.14(e) The registered person must remain registered while providing construction
18.15services for another person. The provisions of sections 326B.091 and, 326B.094 to,
18.16326B.095, and 326B.097 apply to this section 326B.701. A person with an expired
18.17registration shall not provide construction services for another person if registration is
18.18required under this section. Registration application and expiration time frames are as
18.19follows:
18.20(1) all registrations issued on or before June 30, 2015, expire on June 30, 2015;
18.21(2) all registrations issued after June 30, 2015, expire on the following June 30
18.22of each odd-numbered year; and
18.23(3) a person may submit a registration or renewal application starting April 1 of the
18.24year the registration expires. If a renewal application is submitted later than May 1 of
18.25the expiration year, registration may expire before the department has issued or denied
18.26the registration.
18.27EFFECTIVE DATE.This section is effective the day following final enactment.

18.28    Sec. 16. Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read:
18.29    Subd. 7. Prohibited activities related to independent contractor status. (a) The
18.30prohibited activities in this subdivision are in addition to those prohibited in sections
18.31326B.081 to 326B.085.
18.32    (b) An individual shall not hold himself or herself out as an independent contractor
18.33unless the individual meets the requirements of subdivision 4.
18.34    (c) A person who provides construction services in the course of the person's trade,
18.35business, occupation, or profession shall not:
19.1    (1) require an individual through coercion, misrepresentation, or fraudulent means to
19.2adopt independent contractor status or form a business entity;
19.3    (2) knowingly misrepresent or misclassify an individual as an independent
19.4contractor;.
19.5    Subd. 7a. Prohibited activities related to registration. (a) The prohibited activities
19.6in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.
19.7(b) A person who provides construction services in the course of the person's trade,
19.8business, occupation, or profession shall not:
19.9    (3) (1) contract with or perform construction services for another person without first
19.10being registered if required by subdivision 4a section 326B.701;
19.11(4) (2) contract with or pay another person to perform construction services if
19.12the other person is not registered if required by subdivision 4a. All payments to an
19.13unregistered person for construction services on a single project site shall be considered a
19.14single violation. It is not a violation of this clause:
19.15(i) for a person to contract with or pay an unregistered person if the unregistered
19.16person was registered at the time the contract for construction services was entered into; or
19.17(ii) for a homeowner or business to contract with or pay an unregistered person if
19.18the homeowner or business is not in the trade, business, profession, or occupation of
19.19performing building construction or improvement services; or
19.20(5) (3) be penalized for violations of this subdivision that are committed by another
19.21person. This clause applies only to violations of this paragraph.
19.22EFFECTIVE DATE.This section is effective the day following final enactment.

19.23    Sec. 17. Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read:
19.24    Subd. 8a. Enforcement; remedies; and penalties. (a) Notwithstanding the
19.25maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum
19.26penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if
19.27the person registers within 30 days of the date of the penalty order.
19.28(b) The penalty for contracting with or paying an unregistered person to perform
19.29construction services in violation of subdivision 7a, paragraph (b), clause (2), shall be as
19.30provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive
19.31the penalty for the first violation.
19.32EFFECTIVE DATE.This section is effective the day following final enactment.

19.33    Sec. 18. Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read:
20.1    Subd. 2. Public buildings and state-licensed facilities; administration by
20.2commissioner. Unless the commissioner has entered into an agreement under subdivision
20.32a or 2b, the commissioner shall administer and enforce the State Building Code as a
20.4municipality with respect to public buildings and state-licensed facilities in the state.
20.5The commissioner shall establish appropriate permit, plan review, inspection fees, and
20.6surcharges for public buildings and state-licensed facilities.
20.7    Municipalities other than the state having an agreement with the commissioner
20.8for code administration and enforcement service for public buildings and state licensed
20.9facilities shall charge their customary fees, including surcharge, to be paid directly to the
20.10jurisdiction by the applicant seeking authorization to construct a public building or a state
20.11licensed facility. The commissioner shall sign an agreement with a municipality other than
20.12the state for plan review, code administration, and code enforcement service for public
20.13buildings and state licensed facilities in the jurisdiction if the building officials of the
20.14municipality meet the requirements of section 326B.133 and wish to provide those services
20.15and if the commissioner determines that the municipality has enough adequately trained
20.16and qualified building inspectors to provide those services for the construction project.
20.17    The commissioner may direct the state building official to assist a community that
20.18has been affected by a natural disaster with building evaluation and other activities related
20.19to building codes.
20.20    Administration and enforcement in a municipality under this section must apply
20.21any optional provisions of the State Building Code adopted by the municipality. A
20.22municipality adopting any optional code provision shall notify the state building official
20.23within 30 days of its adoption.
20.24    The commissioner shall administer and enforce the provisions of the code relating to
20.25elevators statewide, except as provided for under section 326B.184, subdivision 4.

20.26    Sec. 19. Minnesota Statutes 2012, section 326B.106, is amended by adding a
20.27subdivision to read:
20.28    Subd. 2a. Public buildings and state-licensed facilities; municipal agreement
20.29for all building projects. (a) The commissioner shall enter into an agreement with a
20.30municipality other than the state for plan review, inspection, code administration, and
20.31code enforcement on public buildings and state-licensed facilities in the jurisdiction if
20.32the municipality requests to provide those services and the commissioner determines
20.33that the municipality has enough adequately trained and qualified inspectors to provide
20.34those services. In determining whether a municipality has enough adequately trained and
20.35qualified inspectors to provide the service, the commissioner must consider all inspectors
21.1who are employed by the municipality, are under contract with the municipality to provide
21.2inspection services, or are obligated to provide inspection services to the municipality
21.3under any other lawful agreement.
21.4(b) The criteria used to make this determination shall be provided in writing to
21.5the municipality requesting an agreement.
21.6(c) If the commissioner determines that the municipality lacks enough adequately
21.7trained and qualified inspectors to provide the required services, a written explanation of
21.8the deficiencies shall be provided to the municipality.
21.9(d) The municipality shall be given an opportunity to remedy any deficiencies
21.10and request reconsideration of the commissioner's determination. A request for
21.11reconsideration must be in writing and accompanied by substantiating documentation. A
21.12request for reconsideration must be received by the commissioner within 90 days of the
21.13determination explanation. The commissioner shall review the information and issue a
21.14final determination to the municipality within 30 days of the request.
21.15(e) A municipality aggrieved by a final decision of the commissioner to not enter into
21.16an agreement may appeal to be heard as a contested case in accordance with chapter 14.

21.17    Sec. 20. Minnesota Statutes 2012, section 326B.106, is amended by adding a
21.18subdivision to read:
21.19    Subd. 2b. Public buildings and state-licensed facilities; municipal agreement
21.20for certain building projects. The commissioner shall enter into an agreement with a
21.21municipality other than the state for inspection, code administration, and code enforcement
21.22of reserved projects occurring on public buildings and state-licensed facilities in its
21.23jurisdiction if the municipality has a designated building official as required by section
21.24326B.133 and requests to provide those services.
21.25For purposes of this subdivision, "reserved projects" includes the following:
21.26(1) roof covering replacement that does not add roof load;
21.27(2) towers requiring special inspection;
21.28(3) single-level storage buildings not exceeding 5,000 square feet;
21.29(4) exterior maintenance work, including replacement of siding, windows, and doors;
21.30(5) HVAC unit replacement that does not add roof load or ventilation capacity;
21.31(6) accessibility upgrades not involving building additions or structural alterations;
21.32(7) remodeling that does not change the building's occupancy, structural system, exit
21.33access or discharge pattern, or mechanical load; and
21.34(8) other projects determined to be reserved by the commissioner.

22.1    Sec. 21. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.2subdivision to read:
22.3    Subd. 2c. Municipal fees. Municipalities other than the state having an agreement
22.4under subdivision 2a with the commissioner for code administration and enforcement
22.5service for public buildings and state-licensed facilities or inspecting under authority of
22.6subdivision 2b shall charge their customary fees, including surcharge, to be paid directly
22.7to the jurisdiction by the applicant seeking authorization to construct a public building or
22.8a state-licensed facility.

22.9    Sec. 22. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.10subdivision to read:
22.11    Subd. 2d. Public buildings and state-licensed facilities; municipal obligation.
22.12An agreement with the commissioner under subdivision 2a or 2b must require the
22.13municipality to attend to applicable aspects of code administration and enforcement as
22.14described in the agreement and established by rule.

22.15    Sec. 23. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.16subdivision to read:
22.17    Subd. 2e. Public buildings and state-licensed facilities; applicable code.
22.18Administration and enforcement in a municipality under subdivisions 2a and 2b must
22.19apply any optional provisions of the State Building Code adopted by the municipality. A
22.20municipality adopting any optional code provision shall notify the state building official
22.21within 30 days of its adoption.

22.22    Sec. 24. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.23subdivision to read:
22.24    Subd. 2f. Natural disasters. The commissioner may direct the state building
22.25official to assist a community that has been affected by a natural disaster with building
22.26evaluation and other activities related to building codes.

22.27    Sec. 25. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.28subdivision to read:
22.29    Subd. 2g. Elevators. The commissioner shall administer and enforce the provisions
22.30of the code relating to elevators statewide, except as provided for under section 326B.184,
22.31subdivision 4 .

23.1    Sec. 26. [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION.
23.2The following definition applies to this section: "business entity" means a person
23.3other than an individual or a sole proprietor.
23.4EFFECTIVE DATE.This section is effective the day following final enactment.

23.5    Sec. 27. Minnesota Statutes 2012, section 326B.988, is amended to read:
23.6326B.988 EXCEPTIONS.
23.7    (a) The provisions of sections 326B.93 to 326B.998 shall not apply to:
23.8    (1) boilers and pressure vessels in buildings occupied solely for residence purposes
23.9with accommodations for not more than five families;
23.10    (2) railroad locomotives operated by railroad companies for transportation purposes;
23.11    (3) air tanks installed on the right-of-way of railroads and used directly in the
23.12operation of trains;
23.13    (4) boilers and pressure vessels under the direct jurisdiction of the United States;
23.14    (5) unfired pressure vessels having an internal or external working pressure not
23.15exceeding 15 psig with no limit on size;
23.16    (6) pressure vessels used for storage of compressed air not exceeding five cubic feet
23.17in volume and equipped with an ASME code stamped safety valve set at a maximum of
23.18100 psig;
23.19    (7) pressure vessels having an inside diameter not exceeding six inches;
23.20    (8) every vessel that contains water under pressure, including those containing air
23.21that serves only as a cushion, whose design pressure does not exceed 300 psig and whose
23.22design temperature does not exceed 210 degrees Fahrenheit;
23.23    (9) boiler or pressure vessels located on farms used solely for agricultural or
23.24horticultural purposes; for purposes of this section, boilers used for mint oil extraction
23.25are considered used for agricultural or horticultural purposes, provided that the owner or
23.26lessee complies with the inspection requirements contained in section 326B.958;
23.27    (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
23.28    (11) unfired pressure vessels in petroleum refineries;
23.29    (12) an air tank or pressure vessel which is an integral part of a passenger motor
23.30bus, truck, or trailer;
23.31    (13) hot water heating and other hot liquid boilers not exceeding a heat input of
23.32750,000 BTU per hour;
24.1    (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000
24.2BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity
24.3of 120 gallons, or a pressure of 160 psig;
24.4    (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
24.5    (16) pressure vessels operated full of water or other liquid not materially more
24.6hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees
24.7Fahrenheit or a pressure of 200 psig;
24.8    (17) steam-powered turbines at papermaking facilities which are powered by steam
24.9generated by steam facilities at a remote location;
24.10    (18) manually fired boilers for model locomotive, boat, tractor, stationary engine,
24.11or antique motor vehicles constructed or maintained only as a hobby for exhibition,
24.12educational or historical purposes and not for commercial use, if the boilers have an
24.13inside diameter of 12 inches or less, or a grate area of two square feet or less, and are
24.14equipped with an ASME stamped safety valve of adequate size, a water level indicator,
24.15and a pressure gauge;
24.16(19) any pressure vessel used as an integral part of an electrical circuit breaker;
24.17(20) pressure vessels used for the storage of refrigerant if they are built to ASME
24.18code specifications, registered with the national board, and equipped with an ASME
24.19code-stamped pressure-relieving device set no higher than the maximum allowable
24.20working pressure of the vessel. This does not include pressure vessels used in ammonia
24.21refrigeration systems;
24.22(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide,
24.23argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME
24.24or Minnesota Department of Transportation specifications and equipped with an ASME
24.25code-stamped pressure-relieving device. The owner of the vessels shall perform annual
24.26visual inspections and planned maintenance on these vessels to ensure vessel integrity;
24.27(22) pressure vessels used for the storage of compressed air for self-contained
24.28breathing apparatuses;
24.29(23) hot water heating or other hot liquid boilers vented directly to the atmosphere;
24.30and
24.31(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic
24.32feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or
24.33less.
24.34    (b) An engineer's license is not required for hot water supply boilers.
25.1    (c) An engineer's license and annual inspection by the department is not required
25.2for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not
25.3exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
25.4    (d) Electric boilers not exceeding a maximum working pressure of 50 psig,
25.5maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure
25.6vessels and shall not require an engineer license to operate.
25.7(e) Sawmills, located in a county with a population of less than 8,000 according to
25.8the last federal census and that utilize steam for the drying of lumber, are not required to
25.9meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part
25.105225.1180, only if all of the following conditions are met:
25.11(1) the owner complies with the inspection requirements under section 326B.958,
25.12and the licensing requirements under section 326B.972; and
25.13(2) the boiler:
25.14(i) is equipped with electronic control systems that are remotely operated but which
25.15require on site manual reset of system faults;
25.16(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
25.17(iii) has automatic safety mechanisms built into the remote monitoring systems that
25.18send an alarm upon detection of a fault condition, and an on site alarm that will sound
25.19upon detection of a fault condition and which may be heard at a distance of 500 feet;
25.20(iv) has a water treatment program that is supervised by a third party water treatment
25.21company; and
25.22(v) is attended on site by a licensed boiler operator at least two times in a 24-hour
25.23period. If the boiler is not attended more than twice in a 24-hour period, the period
25.24between checks must not be less than eight hours.
25.25This paragraph expires August 1, 2016.

25.26    Sec. 28. PLUMBING AT RESORTS; WORKGROUP.
25.27The Department of Labor and Industry, in consultation with the Department of
25.28Health, must convene a workgroup to provide recommendations to the legislature on the
25.29requirements for plumbing at resorts classified as either class 1c or class 4c property under
25.30Minnesota Statutes, section 273.13, and licensed by the Department of Health under
25.31Minnesota Statutes, section 157.16. The Department must report its recommendations to
25.32the legislature not later than January 1, 2015.

25.33    Sec. 29. HIGH PRESSURE BOILER RULES AND RECOMMENDATIONS;
25.34APPROPRIATION.
26.1$100,000 in fiscal year 2015 is appropriated from the general fund to the
26.2commissioner of labor and industry to update and modernize rules related to high pressure
26.3boilers. The commissioner must make recommendations by October 1, 2015, to the
26.4committees of the house of representatives and senate with jurisdiction over construction
26.5codes and licensing on changes related to boilers that operate at levels of 15 PSI or higher.
26.6This is a onetime appropriation.

26.7    Sec. 30. REVISOR'S INSTRUCTION.
26.8The revisor of statutes shall replace the phrase "Division of Voluntary
26.9Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.
26.10EFFECTIVE DATE.This section is effective January 1, 2015.

26.11    Sec. 31. REVISOR'S INSTRUCTION.
26.12The revisor of statutes shall renumber the citations in column A with the citations
26.13in column B. The revisor shall correct any cross-references required because of the
26.14renumbering and may make necessary grammatical and technical changes, including
26.15changes to sentence structure, to preserve the meaning of the text.

26.16		Column A	Column B
26.17 26.18		326B.701	326B.701, subd. 1, paragraphs (a) and (b)
26.19		181.723, subd. 1, paragraph (g)	326B.701, subd. 1, paragraph (c)
26.20		181.723, subd. 4a	326B.701, subd. 2
26.21		181.723, subd. 5	326B.701, subd. 3
26.22		181.723, subd. 5a	326B.701, subd. 4
26.23		181.723, subd. 7a	326B.701, subd. 5
26.24		181.723, subd. 8a	326B.701, subd. 6
26.25		181.723, subd. 10a	326B.701, subd. 7
26.26		181.723, subd. 16	326B.701, subd. 8

26.27EFFECTIVE DATE.This section is effective the day following final enactment.

26.28    Sec. 32. REPEALER.
26.29(a) Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and
26.30178.08, are repealed.
26.31(b) Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5,
26.327, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, are repealed.
26.33EFFECTIVE DATE.This section is effective January 1, 2015."
27.1Delete the title and insert:

27.2"A bill for an act

27.3relating to labor and industry; extending an independent contractor pilot
27.4program; making federal conformity changes to the apprenticeship program;
27.5modifying municipal building code enforcement; providing an exception to
27.6high pressure boiler requirements; requiring a workgroup to study plumbing at
27.7certain resorts; appropriating money for a high pressure boiler study;amending
27.8Minnesota Statutes 2012, sections 178.02; 178.03; 178.041, subdivision 2;
27.9178.07; 178.09; 178.10; 181.723, subdivisions 4, 4a, 5, 7, 8a; 326B.106,
27.10subdivision 2, by adding subdivisions; 326B.988; proposing coding for new law
27.11in Minnesota Statutes, chapters 178; 326B; repealing Minnesota Statutes 2012,
27.12sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts
27.135200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14,
27.1415; 5200.0340; 5200.0360; 5200.0390."

28.1	We request the adoption of this report and repassage of the bill.
28.2	Senate Conferees:
28.3	.....		.....
28.4	Matt Schmit		Dan Sparks
28.5	.....
28.6	Gary H. Dahms
28.7	House Conferees:
28.8	.....		.....
28.9	Tim Mahoney		John Ward
28.10	.....
28.11	Bob Gunther