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Key: (1) language to be deleted (2) new language

                            CHAPTER 123-H.F.No. 733 
                  An act relating to employment; modifying provisions 
                  relating to high pressure piping installation; 
                  providing penalties; amending Minnesota Statutes 1994, 
                  sections 326.48, subdivisions 1, 2, 3, 4, and 5; 
                  326.50; 326.51; and 326.52; repealing Minnesota 
                  Statutes 1994, section 326.47, subdivisions 3 and 4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 326.48, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE REQUIRED; RULES; TIME CREDIT.] No 
        person, firm, or corporation shall engage in or work at the 
        business of a contracting pipefitter or journeyman pipefitter 
        unless licensed issued an individual contracting pipefitter 
        license to do so by the department of labor and industry.  No 
        license shall be required for repairs on existing installations. 
        No person shall engage in or work at the business of journeyman 
        pipefitter unless issued an individual journeyman pipefitter 
        competency license to do so by the department of labor and 
        industry.  A person possessing an individual contracting 
        pipefitter competency license may also work as a journeyman 
        pipefitter.  
           No person, partnership, firm, or corporation shall engage 
        in the business of installing install high pressure piping, nor 
        install high pressure piping in connection with the dealing in 
        and selling of high pressure pipe material and supplies, unless, 
        at all times, a licensed pipefitter, who shall be responsible 
        for proper installation, is in charge of person possessing a 
        contracting pipefitter individual competency license or a 
        journeyman pipefitter individual competency license is 
        responsible for the high pressure pipefitting work of conducted 
        by the person, partnership, firm, or corporation being in 
        conformity with Minnesota Statutes and Minnesota Rules. 
           The department of labor and industry shall prescribe rules, 
        not inconsistent herewith, for the examination and individual 
        competency licensing of contracting pipefitters and journeyman 
        pipefitters and for issuance of permits by the department and 
        municipalities for the installation of high pressure piping.  
           An employee performing the duties of inspector for the 
        department of labor and industry in regulating pipefitting shall 
        not receive time credit for the inspection duties when making an 
        application for a license required by this section.  
           Sec. 2.  Minnesota Statutes 1994, section 326.48, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTRACTING PIPEFITTER'S HIGH PRESSURE 
        PIPEFITTING BUSINESS LICENSE; BOND AND INSURANCE REQUIREMENTS.] 
        The applicant for a contracting pipefitter license may give bond 
        to the state in the total penal sum of $2,000 conditioned upon 
        the faithful and lawful performance of all work entered upon 
        within the state.  The bond shall be for the benefit of persons 
        injured or suffering financial loss by reason of failure of 
        performance.  The term of the bond shall be concurrent with the 
        term of the license.  The bond shall be filed with the secretary 
        of state of the state and shall be in lieu of all other license 
        bonds to any political subdivision.  The bond shall be written 
        by a corporate surety licensed to do business in the state. 
           In addition, each applicant for a contracting pipefitter's 
        license or renewal thereof, may provide evidence of public 
        liability insurance, including products liability insurance, 
        with limits of at least $50,000 per person and $100,000 per 
        occurrence and property damage insurance with limits of at least 
        $10,000.  The insurance shall be written by an insurer licensed 
        to do business in the state and each licensed contracting 
        pipefitter shall maintain on file with the department, a 
        certificate evidencing the insurance which provides that the 
        insurance shall not be canceled without the insurer first giving 
        15 days written notice to the department.  The term of the 
        insurance shall be concurrent with the term of the license.  The 
        certificate shall be in lieu of all other certificates required 
        by any political subdivision for licensing purposes. Before 
        obtaining a permit for high pressure piping work, a person, 
        partnership, firm, or corporation must obtain or utilize a 
        business with a high pressure piping business license.  
           A person, partnership, firm, or corporation must have at 
        all times as a full-time employee at least one individual 
        holding an individual contracting pipefitter competency 
        license.  Only full-time employees who hold individual 
        contracting pipefitter licenses are authorized to obtain high 
        pressure piping permits in the name of the business.  The 
        individual contracting pipefitter competency license holder can 
        be the employee of only one high pressure piping business at a 
        time. 
           To retain its business license without reapplication, a 
        person, partnership, firm, or corporation holding a high 
        pressure piping business license that ceases to employ a person 
        holding an individual contracting pipefitter competency license 
        shall have 60 days from the last day of employment of its 
        previous individual contracting pipefitter competency license 
        holder to employ another license holder.  The department of 
        labor and industry must be notified no later than five days 
        after the last day of employment of the previous license holder. 
           No high pressure pipefitting work may be performed during 
        any period when the high pressure pipefitting business does not 
        have an individual contracting pipefitter competency license 
        holder on staff.  If a license holder is not employed within 60 
        days, the pipefitting business license shall lapse. 
           The department of labor and industry shall prescribe by 
        rule procedures for application for and issuance of business 
        licenses and fees. 
           Sec. 3.  Minnesota Statutes 1994, section 326.48, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BOND AND INSURANCE EXEMPTION.] A contracting 
        pipefitter who is an employee of a contracting pipefitter or who 
        is an employee engaged within the limits of property owned, 
        leased and operated, or maintained by the employer, in the 
        maintenance and repair of high pressure pipe work, equipment, or 
        facilities owned or leased by the employer, shall not be 
        required to meet the bond and insurance requirements of 
        subdivision 2.  The applicant for a high pressure piping 
        business license or renewal shall give bond to the state in the 
        total penal sum of $15,000 conditioned upon the faithful and 
        lawful performance of all work entered upon within the state.  
        The bond shall run to and be for the benefit of persons injured 
        or suffering financial loss by reason of failure of payment or 
        performance.  Claims and actions on the bond may be brought 
        according to sections 574.26 to 574.38. 
           The term of the bond must be concurrent with the term of 
        the high pressure pipefitting business license, and run without 
        interruption from the date of the issuance of the license to the 
        end of the calendar year.  All high pressure pipefitting 
        business licenses must be annually renewed on a calendar year 
        basis. 
           The bond must be filed with the secretary of state and 
        shall be in lieu of any other business license bonds required by 
        any political subdivision for high pressure pipefitting.  The 
        bond must be written by a corporate surety licensed to do 
        business in the state. 
           Sec. 4.  Minnesota Statutes 1994, section 326.48, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ALTERNATIVE COMPLIANCE INSURANCE.] Compliance 
        with the local bond requirements of a locale within which work 
        is to be performed shall be deemed to satisfy the bond and 
        insurance requirements of subdivision 2.  In addition to the 
        bond described in subdivision 3, each applicant for a high 
        pressure pipefitting business license or renewal shall have in 
        force public liability insurance, including products liability 
        insurance, with limits of at least $100,000 per person and 
        $300,000 per occurrence and property damage insurance with 
        limits of at least $50,000. 
           The insurance must be kept in force for the entire term of 
        the high pressure pipefitting business license, and the license 
        shall be suspended by the department if at any time the 
        insurance is not in force. 
           The insurance must be written by an insurer licensed to do 
        business in the state and shall be in lieu of any other 
        insurance required by any subdivision of government for high 
        pressure pipefitting.  Each person, partnership, firm, or 
        corporation holding a high pressure pipefitting business shall 
        maintain on file with the department a certificate evidencing 
        the insurance.  Any purported cancellation of insurance shall 
        not be effective without the insurer first giving 30 days' 
        written notice to the department. 
           Sec. 5.  Minnesota Statutes 1994, section 326.48, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEE.] The state department of labor and industry 
        may charge each applicant for a contracting pipefitter high 
        pressure pipefitting business license or for a renewal of 
        a contracting pipefitter high pressure pipefitting business 
        license and an additional fee commensurate with the cost of 
        administering the bond and insurance requirements of subdivision 
        2 subdivisions 3 and 4. 
           Sec. 6.  Minnesota Statutes 1994, section 326.50, is 
        amended to read: 
           326.50 [APPLICATION; FEES.] 
           Application for a pipefitter's an individual contracting 
        pipefitter competency or an individual journeyman pipefitter 
        competency license shall be made to the department of labor and 
        industry, with fees.  The applicant shall be licensed only after 
        passing an examination by the department of labor and industry.  
        Fees and conditions for renewal of journeyman and contracting 
        pipefitter's licenses an individual contracting pipefitter 
        competency or an individual journeyman pipefitter competency 
        license shall be set determined by the commissioner department 
        by rule under chapter 14 and section 16A.128.  
           Sec. 7.  Minnesota Statutes 1994, section 326.51, is 
        amended to read: 
           326.51 [DEPARTMENT MAY REVOKE LICENSES.] 
           The department may revoke or suspend, for cause, any 
        license obtained through error or fraud, or if the licensee is 
        shown to be incompetent, or for a violation of any of its rules 
        and regulations applicable to such high pressure pipefitting 
        work.  The licensee shall have notice, in writing, enumerating 
        the charges, and be entitled to a hearing on at least ten days' 
        notice, with the right to produce testimony.  The hearing shall 
        be held pursuant to chapter 14.  The commissioner shall issue a 
        final order based on testimony and the record at hearing.  One 
        year from the date of revocation application may be made for a 
        new license.  
           Sec. 8.  Minnesota Statutes 1994, section 326.52, is 
        amended to read: 
           326.52 [DEPOSIT OF FEES.] 
           All fees received under sections 326.46 to 326.52 shall be 
        deposited by the department of labor and industry to the credit 
        of the general fund in the state treasury.  The salaries and per 
        diem of the inspectors and examiners hereinbefore provided, 
        their expenses, and all incidental expenses of the department in 
        carrying out the provisions of sections 326.46 to 326.52 shall 
        be paid from the appropriations made to the department of labor 
        and industry.  The commissioner by rule shall set the amount of 
        the fees at a level that approximates, to the greatest extent 
        possible, the salaries, per diem, and incidental expenses of the 
        department. 
           Sec. 9.  [REPEALER.] 
           Minnesota Statutes 1994, section 326.47, subdivisions 3 and 
        4, are repealed. 
           Presented to the governor May 4, 1995 
           Signed by the governor May 5, 1995, 9:05 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes