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

CHAPTER 305--S.F.No. 2065

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 begin ADVISORY new text end BOARD.

Subdivision 1.

Members.

The commissioner deleted text begin of 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 begin The directordeleted text end new text begin A designee of the commissionernew 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 chapternew 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 begin or commissioner new text end deems 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 begin of labor and industry, hereinafter referred to as the commissionerdeleted 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 begin The director, under the supervision of the commissioner, and with the advice and consultation of the Apprenticeship Board, is authorized: to administer the provisions of this chapter; to promote apprenticeship and other forms of on-the-job learning; to establish, in cooperation and consultation with the Apprenticeship Board and with the apprenticeship committees, conditions, training, and learning standards for the approval of apprenticeship programs and agreements, which conditions and standards shall in no case be lower than those (1) prescribed by this chapter, and (2) established underdeleted text end new text begin The division shall be administered as prescribed by this chapter and in accordance withnew 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 educationdeleted text end . The deleted text begin directordeleted text end new 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 begin directordeleted text end new text begin commissionernew text end , if requested by a deleted text begin sponsoring entitydeleted text end new text begin program sponsornew text end , shall grant reciprocity approval to new text begin apprentices, new text end apprenticeship programs deleted text begin of employers and unions who jointly form a sponsoring entity on a multistate basis in other than the building construction industry if such programs are in conformity with this chapter and have been registered in compliance with Code of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized by or registered with the 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 end new 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 standardsnew 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 begin sectiondeleted text end new 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 begin REGISTERED new text end APPRENTICESHIP 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 numbernew 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 begin showingdeleted text end new text begin of the trade or occupation which the apprentice is to be taught, the date on which the apprenticeship will begin, andnew 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 begin supplementary instruction in related subjects, which instruction shall be not less than 144 hours during each year of the apprenticeship term. The maximum number of hours of work per week not including time spent in related and supplemental instruction for any apprentice shall not exceed either the number prescribed by law or the customary regular number of hours per week for the employees of the company by which the apprentice is employed. An apprentice may be allowed to work overtime provided that the overtime work does not conflict with supplementary instruction course attendance. All time in excess of the number of hours of work per week as specified in the apprenticeship agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall be increased by the same percentage as the journeyworker's rate of pay for overtime is increased in the same industry or establishmentdeleted text end new 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 end new text begin (5)new text end a statement of the deleted text begin graduated scale ofdeleted text end wages to be paid the apprentice deleted text begin and whether the required school time shall be compensateddeleted text end new text begin under sections 178.036, subdivision 2, paragraph (e), and 178.044, as applicablenew text end ;

deleted text begin (7)deleted text end new text begin (6)new text end a statement deleted text begin providing for a period of probation of not more than 500 hours of employment and instruction extending over not more than four months, during which time the 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 reasondeleted text end new text begin listing any fringe benefits to be provided to the apprenticenew 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 end new text begin (9)new text end such additional terms and conditions as may be prescribed or approved by the deleted text begin directordeleted text end new 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 begin BY DIRECTORdeleted text end new text begin AND ENFORCEMENT OF APPRENTICESHIP AGREEMENTSnew text end .

Subdivision 1.

Complaint.

Upon the complaint of any interested person or upon the deleted text begin director'sdeleted text end new text begin division'snew text end own initiativenew text begin ,new text end the deleted text begin directordeleted text end new 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 begin Complaints 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 end The deleted text begin directordeleted text end new 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 begin and shall be conducted according to rules promulgated under section 178.041deleted text end .

Subd. 2.

Determination; appeal.

new text begin Within 90 days after the receipt of a complaint, the division must issue a determination. new text end The determination of the deleted text begin directordeleted text end new 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 begin director'sdeleted text end new text begin division'snew text end determination shall become the new text begin final new text end order of the commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing board to be composed of three members of the Apprenticeship new text begin Advisory new text end Board 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 begin or affecteddeleted text end by deleted text begin anydeleted text end new text begin the commissioner'snew text end determination deleted text begin or order of the commissioner may appeal from it to the district court having jurisdiction at any time within 30 days after the date of the order by service of a written notice of appeal on the commissioner. Upon service of the notice of appeal, the commissioner shall file with the court administrator of the district court to which the appeal is taken a certified copy of the order appealed from, together with findings of fact on which it is based. The person serving a notice of appeal shall, within five days after its service, file it, with proof of service, with the court administrator of the court to which the appeal is taken. The district court shall then have jurisdiction over the appeal and it shall be entered in the records of the district court and tried de novo according to the applicable rules. Any person aggrieved or affected by any determination, order, or decision of the district court may appeal as in other civil casesdeleted text end new 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 14.68new 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 end The provisions of this chapter shall have no application to those deleted text begin infantsdeleted text end new 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 begin is registered with the Department of Labor and Industry, if required under subdivision 4a, and the individualdeleted 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 begin submitteddeleted text end in the name of the business entity;new text begin andnew text end

(3) the business entity is registered with the secretary of state, if requireddeleted text begin ; anddeleted text end new 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 begin Applicability; new text end registration deleted text begin pilot projectdeleted text end new text begin requirementnew text end .

(a) deleted text begin The commissioner shall implement a pilot project, effective July 1, 2012, for the registration ofdeleted 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 sectionnew text end . The purpose of deleted text begin the pilot project is to evaluate whether the information obtained through registration assistsdeleted text end new text begin registration is to assistnew 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 begin The 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 begin subdivision 5deleted text end new text begin section 326B.701new text end before performing construction services for another person. The requirements for registration under deleted text begin this subdivisiondeleted text end new text begin section 326B.701new 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 begin this subdivisiondeleted text end new 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 begin thisdeleted text end section new text begin 326B.701 new text end no 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 begin subdivision 4adeleted text end new 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 begin anddeleted text end new text begin ,new text end 326B.094 deleted text begin todeleted text end new text begin , 326B.095, andnew text end 326B.097 apply to deleted text begin thisdeleted 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 end new 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 end new text begin (1)new text end contract with or perform construction services for another person without first being registered if required by deleted text begin subdivision 4adeleted text end new text begin section 326B.701new text end ;

deleted text begin (4)deleted text end new 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 end new 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 end Notwithstanding 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 begin Public buildings and state-licensed facilities; new text end administration by commissioner.

new text begin Unless the commissioner has entered into an agreement under subdivision 2a or 2b, new text end the commissioner shall administer and enforce the State Building Code as a municipality with respect to public buildings and statenew text begin -new text end licensed 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 end licensed 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 begin PLUMBING 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 begin HIGH 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 begin REVISOR'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 begin REVISOR'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

Presented to the governor May 17, 2014

Signed by the governor May 21, 2014, 10:28 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes