<div class="xtend"><a id="pl.1.1"></a><var>1.1</var>CONFERENCE COMMITTEE REPORT ON S.F. No. 1653<br />
         		
         <div class="xtend_ce"><a id="pl.1.2"></a><var>1.2</var>A bill for an act<br />
            		
         </div><a id="pl.1.3"></a><var>1.3</var>relating to labor and industry; clarifying employee classification of independent <br />
         		<a id="pl.1.4"></a><var>1.4</var>contractors; providing pilot project for contractor registration; providing for <br />
         		<a id="pl.1.5"></a><var>1.5</var>penalties;amending Minnesota Statutes 2010, sections 181.723, subdivisions <br />
         		<a id="pl.1.6"></a><var>1.6</var>1, 3, 4, 7, 15, 16, by adding subdivisions; 289A.31, subdivision 5; 299F.011, <br />
         		<a id="pl.1.7"></a><var>1.7</var>by adding a subdivision; 326B.081, subdivision 3; 326B.809; Minnesota <br />
         		<a id="pl.1.8"></a><var>1.8</var>Statutes 2011 Supplement, section 181.723, subdivision 5; repealing Minnesota <br />
         		<a id="pl.1.9"></a><var>1.9</var>Statutes 2010, sections 181.723, subdivisions 6, 8, 9, 10, 11, 12, 14, 17; 290.92, <br />
         		<a id="pl.1.10"></a><var>1.10</var>subdivision 31; Minnesota Rules, parts 5202.0100; 5202.0110; 5202.0120; <br />
         		<a id="pl.1.11"></a><var>1.11</var>5202.0130; 5202.0140; 5202.0150; 5202.0160.<br />
         		<a id="pl.1.12"></a><var>1.12</var>May 8, 2012<br />
         		<a id="pl.1.13"></a><var>1.13</var>The Honorable Michelle L. Fischbach<br />
         		<a id="pl.1.14"></a><var>1.14</var>President of the Senate<br />
         		<a id="pl.1.15"></a><var>1.15</var>The Honorable Kurt Zellers<br />
         		<a id="pl.1.16"></a><var>1.16</var>Speaker of the House of Representatives<br />
         		<a id="pl.1.17"></a><var>1.17</var>We, the undersigned conferees for S.F. No. 1653 report that we have agreed upon <br />
         		<a id="pl.1.18"></a><var>1.18</var>the items in dispute and recommend as follows:<br />
         		<a id="pl.1.19"></a><var>1.19</var>That the House recede from its amendments and that S.F. No. 1653 be further <br />
         		<a id="pl.1.20"></a><var>1.20</var>amended as follows:<br />
         		<a id="pl.1.21"></a><var>1.21</var>Delete everything after the enacting clause and insert:<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.1.22"></a><var>1.22</var>"<b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.1.23"></a><var>1.23</var><b>LABOR AND INDUSTRY HOUSEKEEPING</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><a id="pl.1.24"></a><var>1.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 178.01, is amended to read:<br />
         		<a id="pl.1.25"></a><var>1.25</var><b>178.01 PURPOSES.</b><br />
         		<a id="pl.1.26"></a><var>1.26</var>&nbsp;&nbsp;&nbsp;&nbsp;The purposes of this chapter are: to open to ~~young~~ all people regardless of race, <br />
         		<a id="pl.1.27"></a><var>1.27</var>sex, creed, color or national origin, the opportunity to obtain training and on-the-job <br />
         		<a id="pl.1.28"></a><var>1.28</var>learning that will equip them for profitable employment and citizenship; to establish as <br />
         		<a id="pl.1.29"></a><var>1.29</var>a means to this end, a program of voluntary apprenticeship under approved ~~apprentice~~ <br />
         		<a id="pl.1.30"></a><var>1.30</var>apprenticeship agreements providing facilities for their training and guidance in the arts, <br />
         		<a id="pl.1.31"></a><var>1.31</var>skills, and crafts of industry and trade or occupation, with concurrent, supplementary <br />
         		<a id="pl.2.1"></a><var>2.1</var>instruction in related subjects; to promote apprenticeship opportunities under conditions <br />
         		<a id="pl.2.2"></a><var>2.2</var>providing adequate training and on-the-job learning and reasonable earnings; to relate the <br />
         		<a id="pl.2.3"></a><var>2.3</var>supply of skilled workers to employment demands; to establish standards for apprentice <br />
         		<a id="pl.2.4"></a><var>2.4</var>training; to establish an Apprenticeship Board and apprenticeship committees to assist in <br />
         		<a id="pl.2.5"></a><var>2.5</var>effectuating the purposes of this chapter; to provide for a Division of Labor Standards <br />
         		<a id="pl.2.6"></a><var>2.6</var>and Apprenticeship within the Department of Labor and Industry; to provide for reports <br />
         		<a id="pl.2.7"></a><var>2.7</var>to the legislature regarding the status of apprentice training in the state; to establish a <br />
         		<a id="pl.2.8"></a><var>2.8</var>procedure for the determination of ~~apprentice~~ apprenticeship agreement controversies; <br />
         		<a id="pl.2.9"></a><var>2.9</var>and to accomplish related ends.<br />
         		<br />
         		<a id="bill.1.2.0"></a><a id="pl.2.10"></a><var>2.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 178.03, subdivision 3, is amended to read:<br />
         		<a id="pl.2.11"></a><var>2.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Duties and functions.</b> The director, under the supervision of the <br />
         		<a id="pl.2.12"></a><var>2.12</var>commissioner, and with the advice and consultation of the Apprenticeship Board, is <br />
         		<a id="pl.2.13"></a><var>2.13</var>authorized: to administer the provisions of this chapter; to promote apprenticeship and <br />
         		<a id="pl.2.14"></a><var>2.14</var>other forms of on-the-job learning; to establish, in cooperation and consultation with the <br />
         		<a id="pl.2.15"></a><var>2.15</var>Apprenticeship Board and with the apprenticeship committees, conditions, training, and <br />
         		<a id="pl.2.16"></a><var>2.16</var>learning standards for the approval of apprenticeship programs and agreements, which <br />
         		<a id="pl.2.17"></a><var>2.17</var>conditions and standards shall in no case be lower than those (1) prescribed by this chapter, <br />
         		<a id="pl.2.18"></a><var>2.18</var>and (2) established under Code of Federal Regulations, title 29, part 29; to promote equal <br />
         		<a id="pl.2.19"></a><var>2.19</var>employment opportunity in apprenticeship and other on-the-job learning and to establish <br />
         		<a id="pl.2.20"></a><var>2.20</var>a Minnesota plan for equal employment opportunity in apprenticeship which shall be <br />
         		<a id="pl.2.21"></a><var>2.21</var>consistent with standards established under Code of Federal Regulations, title 29, part 30, <br />
         		<a id="pl.2.22"></a><var>2.22</var>as amended; to issue certificates of registration to sponsors of approved apprenticeship <br />
         		<a id="pl.2.23"></a><var>2.23</var>programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion <br />
         		<a id="pl.2.24"></a><var>2.24</var>that approval is for the best interest of the apprentice, any apprenticeship agreement which <br />
         		<a id="pl.2.25"></a><var>2.25</var>meets the standards established hereunder; to terminate any apprenticeship agreement in <br />
         		<a id="pl.2.26"></a><var>2.26</var>accordance with the provisions of such agreement; to keep a record of apprenticeship <br />
         		<a id="pl.2.27"></a><var>2.27</var>agreements and their disposition; to issue certificates of completion of apprenticeship; <br />
         		<a id="pl.2.28"></a><var>2.28</var>and to perform such other duties as the commissioner deems necessary to carry out the <br />
         		<a id="pl.2.29"></a><var>2.29</var>intent of this chapter; provided, that the administration and supervision of supplementary <br />
         		<a id="pl.2.30"></a><var>2.30</var>instruction in related subjects for apprentices; coordination of instruction on a concurrent <br />
         		<a id="pl.2.31"></a><var>2.31</var>basis with job experiences, and the selection and training of teachers and coordinators <br />
         		<a id="pl.2.32"></a><var>2.32</var>for such instruction shall be the function of state and local boards responsible for <br />
         		<a id="pl.2.33"></a><var>2.33</var>vocational education. The director shall have the authority to make wage determinations <br />
         		<a id="pl.2.34"></a><var>2.34</var>applicable to the graduated schedule of wages and ~~journeyman~~ journeyworker wage rate <br />
         		<a id="pl.2.35"></a><var>2.35</var>for apprenticeship agreements, giving consideration to the existing wage rates prevailing <br />
         		<a id="pl.3.1"></a><var>3.1</var>throughout the state, except that no wage determination by the director shall alter an <br />
         		<a id="pl.3.2"></a><var>3.2</var>existing wage provision for apprentices or ~~journeymen~~ journeyworkers that is contained in <br />
         		<a id="pl.3.3"></a><var>3.3</var>a bargaining agreement in effect between an employer and an organization of employees, <br />
         		<a id="pl.3.4"></a><var>3.4</var>nor shall the director make any determination for the beginning rate for an apprentice that <br />
         		<a id="pl.3.5"></a><var>3.5</var>is below the wage minimum established by federal or state law.<br />
         		<br />
         		<a id="bill.1.3.0"></a><a id="pl.3.6"></a><var>3.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 178.03, subdivision 4, is amended to read:<br />
         		<a id="pl.3.7"></a><var>3.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Reciprocity approval.</b> The director, if requested by a sponsoring entity, <br />
         		<a id="pl.3.8"></a><var>3.8</var>shall grant reciprocity approval to apprenticeship programs of employers and unions <br />
         		<a id="pl.3.9"></a><var>3.9</var>who jointly form a sponsoring entity on a multistate basis in other than the building <br />
         		<a id="pl.3.10"></a><var>3.10</var>construction industry if such programs are in conformity with this chapter and have been <br />
         		<a id="pl.3.11"></a><var>3.11</var>registered in compliance with Code of Federal Regulations, title 29, part 29, by a state <br />
         		<a id="pl.3.12"></a><var>3.12</var>apprenticeship council recognized by or registered with the ~~Bureau of Apprenticeship~~ <br />
         		<a id="pl.3.13"></a><var>3.13</var>~~and Training,~~ United States Department of Labor, Office of Apprenticeship, when such <br />
         		<a id="pl.3.14"></a><var>3.14</var>approval is necessary for federal purposes under Code of Federal Regulations, title 29, <br />
         		<a id="pl.3.15"></a><var>3.15</var>section 
         <statute_ref>29.13</statute_ref>(a) or 29.13(b)(7).<br />
         		<br />
         		<a id="bill.1.4.0"></a><a id="pl.3.16"></a><var>3.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 178.05, subdivision 1, is amended to read:<br />
         		<a id="pl.3.17"></a><var>3.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Establishment of committees.</b> Apprenticeship committees may <br />
         		<a id="pl.3.18"></a><var>3.18</var>be established by the director to supervise the operation of apprenticeship programs. <br />
         		<a id="pl.3.19"></a><var>3.19</var>Establishment of a committee may be considered justified if either of the following <br />
         		<a id="pl.3.20"></a><var>3.20</var>conditions are met:<br />
         		<a id="pl.3.21"></a><var>3.21</var>(a) When the employers and employees in a trade or occupation or trades or <br />
         		<a id="pl.3.22"></a><var>3.22</var>occupations are parties to a collective bargaining agreement requiring joint participation <br />
         		<a id="pl.3.23"></a><var>3.23</var>in program operation; or<br />
         		<a id="pl.3.24"></a><var>3.24</var>(b) When five or more apprentices are enrolled under a program.<br />
         		<br />
         		<a id="bill.1.5.0"></a><a id="pl.3.25"></a><var>3.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 178.05, subdivision 2, is amended to read:<br />
         		<a id="pl.3.26"></a><var>3.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Members.</b> (a) The total number of members on a committee may range <br />
         		<a id="pl.3.27"></a><var>3.27</var>from four to twelve.<br />
         		<a id="pl.3.28"></a><var>3.28</var>(b) In joint participation there shall be equal representation of employers and <br />
         		<a id="pl.3.29"></a><var>3.29</var>employees.<br />
         		<a id="pl.3.30"></a><var>3.30</var>(c) Members shall be selected by the group or groups they represent subject to <br />
         		<a id="pl.3.31"></a><var>3.31</var>approval by the director.<br />
         		<a id="pl.4.1"></a><var>4.1</var>~~(d) A committee may have as one of its employee representatives, an active~~ <br />
         		<a id="pl.4.2"></a><var>4.2</var>~~apprentice of record, provided that the apprentice has completed a minimum of 6,000~~ <br />
         		<a id="pl.4.3"></a><var>4.3</var>~~hours of an apprenticeship term or has entered the fourth year of the term.~~<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.4.4"></a><var>4.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 178.06, is amended to read:<br />
         		<a id="pl.4.5"></a><var>4.5</var><b>178.06 APPRENTICE.</b><br />
         		<a id="pl.4.6"></a><var>4.6</var>The term "apprentice," as used herein, means a person at least 16 years of age who <br />
         		<a id="pl.4.7"></a><var>4.7</var>has entered into a written agreement, hereinafter called an ~~apprentice~~ apprenticeship <br />
         		<a id="pl.4.8"></a><var>4.8</var>agreement, with a committee, an employer, an association of employers, or an organization <br />
         		<a id="pl.4.9"></a><var>4.9</var>of employees, which ~~apprentice agreement~~ provides for learning consistent with this <br />
         		<a id="pl.4.10"></a><var>4.10</var>chapter and Code of Federal Regulations, title 29, section 29.5(b)(1) and (b)(2):<br />
         		<a id="pl.4.11"></a><var>4.11</var>(1) a time-based approach involving not less than 2,000 hours or one year <br />
         		<a id="pl.4.12"></a><var>4.12</var>of reasonably continuous employment for such person and for participation in an <br />
         		<a id="pl.4.13"></a><var>4.13</var>approved program of on-the-job learning through employment and through concurrent, <br />
         		<a id="pl.4.14"></a><var>4.14</var>supplementary education in related subjects;<br />
         		<a id="pl.4.15"></a><var>4.15</var>(2) a competency-based approach involving successful demonstration of acquired <br />
         		<a id="pl.4.16"></a><var>4.16</var>skills and knowledge by an apprentice plus on-the-job learning; or<br />
         		<a id="pl.4.17"></a><var>4.17</var>(3) a hybrid approach involving the completion of a specified minimum number of <br />
         		<a id="pl.4.18"></a><var>4.18</var>hours plus the successful demonstration of competency.<br />
         		<a id="pl.4.19"></a><var>4.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Whenever a minimum age exceeding 16 years is prescribed by federal or state law <br />
         		<a id="pl.4.20"></a><var>4.20</var>to apply to workers in certain hazardous occupations, the minimum age so prescribed <br />
         		<a id="pl.4.21"></a><var>4.21</var>shall be applicable to apprentices.<br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.4.22"></a><var>4.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 178.07, is amended to read:<br />
         		<a id="pl.4.23"></a><var>4.23</var><b>178.07 </b>~~<b>APPRENTICE</b>~~<b> APPRENTICESHIP</b><b> AGREEMENTS.</b><br />
         		<a id="pl.4.24"></a><var>4.24</var>Every ~~apprentice~~ apprenticeship agreement entered into under this chapter shall <br />
         		<a id="pl.4.25"></a><var>4.25</var>contain:<br />
         		<a id="pl.4.26"></a><var>4.26</var>(1) the names of the contracting parties;<br />
         		<a id="pl.4.27"></a><var>4.27</var>(2) the date of birth, and information as to the race and sex of the apprentice;<br />
         		<a id="pl.4.28"></a><var>4.28</var>(3) a statement of the trade, craft, occupation, or business which the apprentice is to <br />
         		<a id="pl.4.29"></a><var>4.29</var>be taught, and the time at which the apprenticeship will begin and end;<br />
         		<a id="pl.4.30"></a><var>4.30</var>(4) a statement showing the number of hours to be spent by the apprentice in work <br />
         		<a id="pl.4.31"></a><var>4.31</var>and the number of hours to be spent in concurrent, supplementary instruction in related <br />
         		<a id="pl.4.32"></a><var>4.32</var>subjects, which instruction shall be not less than 144 hours during each year of the <br />
         		<a id="pl.4.33"></a><var>4.33</var>apprenticeship term. The maximum number of hours of work per week not including time <br />
         		<a id="pl.4.34"></a><var>4.34</var>spent in related and supplemental instruction for any apprentice shall not exceed either <br />
         		<a id="pl.5.1"></a><var>5.1</var>the number prescribed by law or the customary regular number of hours per week for the <br />
         		<a id="pl.5.2"></a><var>5.2</var>employees of the company by which the apprentice is employed. An apprentice may <br />
         		<a id="pl.5.3"></a><var>5.3</var>be allowed to work overtime provided that the overtime work does not conflict with <br />
         		<a id="pl.5.4"></a><var>5.4</var>supplementary instruction course attendance. All time in excess of the number of hours of <br />
         		<a id="pl.5.5"></a><var>5.5</var>work per week as specified in the apprenticeship agreement shall be considered overtime. <br />
         		<a id="pl.5.6"></a><var>5.6</var>For overtime, the apprentice's rate of pay shall be increased by the same percentage as the <br />
         		<a id="pl.5.7"></a><var>5.7</var>~~journeyman's~~ journeyworker's rate of pay for overtime is increased in the same industry or <br />
         		<a id="pl.5.8"></a><var>5.8</var>establishment;<br />
         		<a id="pl.5.9"></a><var>5.9</var>(5) a statement setting forth a schedule of the processes in the trade, occupation, <br />
         		<a id="pl.5.10"></a><var>5.10</var>or industry divisions in which the apprentice is to be taught and the approximate time to <br />
         		<a id="pl.5.11"></a><var>5.11</var>be spent at each process;<br />
         		<a id="pl.5.12"></a><var>5.12</var>(6) a statement of the graduated scale of wages to be paid the apprentice and whether <br />
         		<a id="pl.5.13"></a><var>5.13</var>the required school time shall be compensated;<br />
         		<a id="pl.5.14"></a><var>5.14</var>(7) a statement providing for a period of probation of not more than 500 hours of <br />
         		<a id="pl.5.15"></a><var>5.15</var>employment and instruction extending over not more than four months, during which time <br />
         		<a id="pl.5.16"></a><var>5.16</var>the ~~apprentice~~ apprenticeship agreement shall be terminated by the director upon written <br />
         		<a id="pl.5.17"></a><var>5.17</var>request of either party, and providing that after such probationary period the ~~apprentice~~ <br />
         		<a id="pl.5.18"></a><var>5.18</var>apprenticeship agreement may be terminated by the director by mutual agreement of all <br />
         		<a id="pl.5.19"></a><var>5.19</var>parties thereto, or terminated by the director for good and sufficient reason;<br />
         		<a id="pl.5.20"></a><var>5.20</var>(8) a provision that controversies or differences concerning the terms of the <br />
         		<a id="pl.5.21"></a><var>5.21</var>~~apprentice~~ apprenticeship agreement which cannot be resolved by the parties thereto, or <br />
         		<a id="pl.5.22"></a><var>5.22</var>which are not covered by a collective bargaining agreement, may be submitted to the <br />
         		<a id="pl.5.23"></a><var>5.23</var>director for determination as provided for in section 
         <statute_ref>178.09</statute_ref>;<br />
         		<a id="pl.5.24"></a><var>5.24</var>(9) a provision that an employer who is unable to fulfill an obligation under the <br />
         		<a id="pl.5.25"></a><var>5.25</var>~~apprentice~~ apprenticeship agreement may, with the approval of the director, transfer such <br />
         		<a id="pl.5.26"></a><var>5.26</var>contract to any other employer, provided that the apprentice consents and that such other <br />
         		<a id="pl.5.27"></a><var>5.27</var>employer agrees to assume the obligations of the ~~apprentice~~ apprenticeship agreement; and<br />
         		<a id="pl.5.28"></a><var>5.28</var>(10) such additional terms and conditions as may be prescribed or approved by the <br />
         		<a id="pl.5.29"></a><var>5.29</var>director not inconsistent with the provisions of this chapter.<br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.5.30"></a><var>5.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 178.08, is amended to read:<br />
         		<a id="pl.5.31"></a><var>5.31</var><b>178.08 DIRECTOR TO APPROVE </b>~~<b>APPRENTICE</b>~~<b> APPRENTICESHIP</b><b> </b><br />
         		<a id="pl.5.32"></a><var>5.32</var><b>AGREEMENTS.</b><br />
         		<a id="pl.5.33"></a><var>5.33</var>Every ~~apprentice~~ apprenticeship agreement is subject to approval by the director <br />
         		<a id="pl.5.34"></a><var>5.34</var>and shall be signed by the committee, the employer, an association of employers, or <br />
         		<a id="pl.5.35"></a><var>5.35</var>an organization of employees, and by the apprentice, and if the apprentice is a minor, <br />
         		<a id="pl.6.1"></a><var>6.1</var>by a parent or legal guardian. When a minor enters into an ~~apprentice~~ apprenticeship <br />
         		<a id="pl.6.2"></a><var>6.2</var>agreement under this chapter for a period of learning extending into majority the <br />
         		<a id="pl.6.3"></a><var>6.3</var>~~apprentice~~ apprenticeship agreement shall likewise be binding for such a period as may be <br />
         		<a id="pl.6.4"></a><var>6.4</var>covered during the apprentice's majority.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.6.5"></a><var>6.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 178.09, subdivision 1, is amended to read:<br />
         		<a id="pl.6.6"></a><var>6.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Complaint.</b> Upon the complaint of any interested person or upon <br />
         		<a id="pl.6.7"></a><var>6.7</var>the director's own initiative the director may investigate to determine if there has been a <br />
         		<a id="pl.6.8"></a><var>6.8</var>violation of the terms of an ~~apprentice~~ apprenticeship agreement made under this chapter. <br />
         		<a id="pl.6.9"></a><var>6.9</var>The director may conduct such proceedings as are necessary for that investigation and <br />
         		<a id="pl.6.10"></a><var>6.10</var>determination. All such proceedings shall be on a fair and impartial basis and shall be <br />
         		<a id="pl.6.11"></a><var>6.11</var>conducted according to rules promulgated under section 
         <statute_ref>178.041</statute_ref>.<br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.6.12"></a><var>6.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 178.09, subdivision 2, is amended to read:<br />
         		<a id="pl.6.13"></a><var>6.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Determination; appeal.</b> The determination of the director shall be filed <br />
         		<a id="pl.6.14"></a><var>6.14</var>with the commissioner and written notice shall be served on all parties affected by it. <br />
         		<a id="pl.6.15"></a><var>6.15</var>Any person aggrieved by any determination or action of the director may appeal to the <br />
         		<a id="pl.6.16"></a><var>6.16</var>commissioner. If no appeal is filed with the commissioner within ten days of the date <br />
         		<a id="pl.6.17"></a><var>6.17</var>of service, the director's determination shall become the order of the commissioner. If <br />
         		<a id="pl.6.18"></a><var>6.18</var>an appeal is filed, the commissioner shall appoint and convene a hearing board to be <br />
         		<a id="pl.6.19"></a><var>6.19</var>composed of three members of the ~~council~~ Apprenticeship Board appointed under <br />
         		<a id="pl.6.20"></a><var>6.20</var>section 178.02, one member being a representative of an employer organization, one <br />
         		<a id="pl.6.21"></a><var>6.21</var>representative being a member of an employee organization, and one member representing <br />
         		<a id="pl.6.22"></a><var>6.22</var>the general public. The board shall hold a hearing on the appeal after due notice to the <br />
         		<a id="pl.6.23"></a><var>6.23</var>interested parties and shall submit to the commissioner findings of fact and a recommended <br />
         		<a id="pl.6.24"></a><var>6.24</var>decision accompanied by a memorandum of the reasons for it. Within 30 days after <br />
         		<a id="pl.6.25"></a><var>6.25</var>submission, the commissioner may adopt the recommended decision of the board, or <br />
         		<a id="pl.6.26"></a><var>6.26</var>disregard the recommended decision of the board and prepare a decision based on the <br />
         		<a id="pl.6.27"></a><var>6.27</var>findings of fact and accompanied by a memorandum of reasons for that decision. Written <br />
         		<a id="pl.6.28"></a><var>6.28</var>notice of the commissioner's determination and order shall be served on all parties affected <br />
         		<a id="pl.6.29"></a><var>6.29</var>by it. Any person aggrieved or affected by any determination or order of the commissioner <br />
         		<a id="pl.6.30"></a><var>6.30</var>may appeal from it to the district court having jurisdiction at any time within 30 days after <br />
         		<a id="pl.6.31"></a><var>6.31</var>the date of the order by service of a written notice of appeal on the commissioner. Upon <br />
         		<a id="pl.6.32"></a><var>6.32</var>service of the notice of appeal, the commissioner shall file with the court administrator <br />
         		<a id="pl.6.33"></a><var>6.33</var>of the district court to which the appeal is taken a certified copy of the order appealed <br />
         		<a id="pl.6.34"></a><var>6.34</var>from, together with findings of fact on which it is based. The person serving a notice of <br />
         		<a id="pl.7.1"></a><var>7.1</var>appeal shall, within five days after its service, file it, with proof of service, with the court <br />
         		<a id="pl.7.2"></a><var>7.2</var>administrator of the court to which the appeal is taken. The district court shall then have <br />
         		<a id="pl.7.3"></a><var>7.3</var>jurisdiction over the appeal and it shall be entered in the records of the district court and <br />
         		<a id="pl.7.4"></a><var>7.4</var>tried de novo according to the applicable rules. Any person aggrieved or affected by any <br />
         		<a id="pl.7.5"></a><var>7.5</var>determination, order, or decision of the district court may appeal as in other civil cases.<br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.7.6"></a><var>7.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 326B.092, subdivision 2, is amended to read:<br />
         		<a id="pl.7.7"></a><var>7.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Licenses not requiring examination administered by commissioner.</b> If <br />
         		<a id="pl.7.8"></a><var>7.8</var>the applicant for a license is not required to pass an examination in order to obtain the <br />
         		<a id="pl.7.9"></a><var>7.9</var>license, or is required to pass an examination that is not administered by the commissioner, <br />
         		<a id="pl.7.10"></a><var>7.10</var>then the license fee must accompany the application for the license. If the application is <br />
         		<a id="pl.7.11"></a><var>7.11</var>for a license issued under sections 
         <statute_ref>326B.802</statute_ref> to 
         <statute_ref>326B.885</statute_ref> and is not an application for <br />
         		<a id="pl.7.12"></a><var>7.12</var>license renewal, then the contractor recovery fund fee required under section 
         <statute_ref>326B.89</statute_ref>, <br />
         		<a id="pl.7.13"></a><var>7.13</var>subdivision 3, is due ~~after the department has determined that the applicant meets the~~ <br />
         		<a id="pl.7.14"></a><var>7.14</var>~~qualifications for licensing and~~ before the license is issued.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.7.15"></a><var>7.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 326B.092, subdivision 7, is amended to read:<br />
         		<a id="pl.7.16"></a><var>7.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>License fees and license renewal fees.</b> (a) The license fee for each license <br />
         		<a id="pl.7.17"></a><var>7.17</var>~~except a renewed license shall be the base license fee plus any applicable board fee, as~~ <br />
         		<a id="pl.7.18"></a><var>7.18</var>~~set forth in this subdivision. The license renewal fee for each renewed license~~ is the <br />
         		<a id="pl.7.19"></a><var>7.19</var>base license fee plus any applicable board fee, continuing education fee, and contractor <br />
         		<a id="pl.7.20"></a><var>7.20</var>recovery fund fee and additional assessment, as set forth in this subdivision.<br />
         		<a id="pl.7.21"></a><var>7.21</var>(b) For purposes of this section, "license duration" means the number of years for <br />
         		<a id="pl.7.22"></a><var>7.22</var>which the license is issued except that:<br />
         		<a id="pl.7.23"></a><var>7.23</var>(1) if the initial license is not issued for a whole number of years, the license duration <br />
         		<a id="pl.7.24"></a><var>7.24</var>shall be rounded up to the next whole number; and<br />
         		<a id="pl.7.25"></a><var>7.25</var>(2) if the department receives an application for license renewal after the renewal <br />
         		<a id="pl.7.26"></a><var>7.26</var>deadline, license duration means the number of years for which the renewed license would <br />
         		<a id="pl.7.27"></a><var>7.27</var>have been issued if the renewal application had been submitted on time and all other <br />
         		<a id="pl.7.28"></a><var>7.28</var>requirements for renewal had been met.<br />
         		<a id="pl.7.29"></a><var>7.29</var>(c) The base license fee shall depend on whether the license is classified as an entry <br />
         		<a id="pl.7.30"></a><var>7.30</var>level, master, journeyman, or business license, and on the license duration. The base <br />
         		<a id="pl.7.31"></a><var>7.31</var>license fee shall be:<br />
         		
         <table>
            <col width="50px"></col>
            <col width=""></col>
            <col width=""></col>
            <col width=""></col>
            <col width=""></col>
            <tr>
               <td><a id="pl.7.32"></a><var>7.32</var><br />
                  		
               </td>
               <td>License Classification<br />
                  		
               </td>
               <td colspan="2" align="center">License Duration <br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.7.33"></a><var>7.33</var><br />
                  		
               </td>
               <td></td>
               <td>1 Year<br />
                  		
               </td>
               <td>2 Years<br />
                  		
               </td>
               <td>3 Years<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.7.34"></a><var>7.34</var><br />
                  		
               </td>
               <td>Entry level<br />
                  		
               </td>
               <td>$10<br />
                  		
               </td>
               <td>$20<br />
                  		
               </td>
               <td>$30<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.8.1"></a><var>8.1</var><br />
                  		
               </td>
               <td>Journeyman<br />
                  		
               </td>
               <td>$20<br />
                  		
               </td>
               <td>$40<br />
                  		
               </td>
               <td>$60<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.8.2"></a><var>8.2</var><br />
                  		
               </td>
               <td>Master<br />
                  		
               </td>
               <td>$40<br />
                  		
               </td>
               <td>$80<br />
                  		
               </td>
               <td>$120<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.8.3"></a><var>8.3</var><br />
                  		
               </td>
               <td>Business<br />
                  		
               </td>
               <td>$90<br />
                  		
               </td>
               <td>$180<br />
                  		
               </td>
               <td>$270<br />
                  		
               </td>
            </tr>
         </table><a id="pl.8.4"></a><var>8.4</var>(d) If there is a continuing education requirement for renewal of the license, then <br />
         		<a id="pl.8.5"></a><var>8.5</var>a continuing education fee must be included in the renewal license fee. The continuing <br />
         		<a id="pl.8.6"></a><var>8.6</var>education fee for all license classifications shall be: $10 if the renewal license duration is <br />
         		<a id="pl.8.7"></a><var>8.7</var>one year; $20 if the renewal license duration is two years; and $30 if the renewal license <br />
         		<a id="pl.8.8"></a><var>8.8</var>duration is three years.<br />
         		<a id="pl.8.9"></a><var>8.9</var>(e) If the license is issued under sections 
         <statute_ref>326B.31</statute_ref> to 
         <statute_ref>326B.59</statute_ref> or 
         <statute_ref>326B.90</statute_ref> to <br />
         		
         <statute_ref><a id="pl.8.10"></a><var>8.10</var>326B.93
         </statute_ref>, then a board fee must be included in the license fee and the renewal license fee. <br />
         		<a id="pl.8.11"></a><var>8.11</var>The board fee for all license classifications shall be: $4 if the license duration is one year; <br />
         		<a id="pl.8.12"></a><var>8.12</var>$8 if the license duration is two years; and $12 if the license duration is three years.<br />
         		<a id="pl.8.13"></a><var>8.13</var>(f) If the application is for the renewal of a license issued under sections 
         <statute_ref>326B.802 <br />
            		
         </statute_ref><a id="pl.8.14"></a><var>8.14</var>to 
         <statute_ref>326B.885</statute_ref>, then the contractor recovery fund fee required under section 
         <statute_ref>326B.89</statute_ref>, <br />
         		<a id="pl.8.15"></a><var>8.15</var>subdivision 3, and any additional assessment required under section 
         <statute_ref>326B.89, subdivision <br />
            		
         </statute_ref><a id="pl.8.16"></a><var>8.16</var>16, must be included in the license renewal fee.<br />
         		<br />
         		<a id="bill.1.13.0"></a><a id="pl.8.17"></a><var>8.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2011 Supplement, section 326B.0981, subdivision 4, <br />
         		<a id="pl.8.18"></a><var>8.18</var>is amended to read:<br />
         		<a id="pl.8.19"></a><var>8.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Internet continuing education.</b> (a) The design and delivery of an Internet <br />
         		<a id="pl.8.20"></a><var>8.20</var>continuing education course must be approved by the International Distance Education <br />
         		<a id="pl.8.21"></a><var>8.21</var>Certification Center (IDECC) or the International Association for Continuing Education <br />
         		<a id="pl.8.22"></a><var>8.22</var>and Training (IACET) before the course is submitted for the commissioner's approval. <br />
         		<a id="pl.8.23"></a><var>8.23</var>The ~~IDECC~~ approval must accompany the course submitted.<br />
         		<a id="pl.8.24"></a><var>8.24</var>(b) An Internet continuing education course must:<br />
         		<a id="pl.8.25"></a><var>8.25</var>(1) specify the minimum computer system requirements;<br />
         		<a id="pl.8.26"></a><var>8.26</var>(2) provide encryption that ensures that all personal information, including the <br />
         		<a id="pl.8.27"></a><var>8.27</var>student's name, address, and credit card number, cannot be read as it passes across the <br />
         		<a id="pl.8.28"></a><var>8.28</var>Internet;<br />
         		<a id="pl.8.29"></a><var>8.29</var>(3) include technology to guarantee seat time;<br />
         		<a id="pl.8.30"></a><var>8.30</var>(4) include a high level of interactivity;<br />
         		<a id="pl.8.31"></a><var>8.31</var>(5) include graphics that reinforce the content;<br />
         		<a id="pl.8.32"></a><var>8.32</var>(6) include the ability for the student to contact an instructor or course sponsor <br />
         		<a id="pl.8.33"></a><var>8.33</var>within a reasonable amount of time;<br />
         		<a id="pl.8.34"></a><var>8.34</var>(7) include the ability for the student to get technical support within a reasonable <br />
         		<a id="pl.8.35"></a><var>8.35</var>amount of time;<br />
         		<a id="pl.9.1"></a><var>9.1</var>(8) include a statement that the student's information will not be sold or distributed <br />
         		<a id="pl.9.2"></a><var>9.2</var>to any third party without prior written consent of the student. Taking the course does not <br />
         		<a id="pl.9.3"></a><var>9.3</var>constitute consent;<br />
         		<a id="pl.9.4"></a><var>9.4</var>(9) be available 24 hours a day, seven days a week, excluding minimal downtime <br />
         		<a id="pl.9.5"></a><var>9.5</var>for updating and administration, except that this provision does not apply to live courses <br />
         		<a id="pl.9.6"></a><var>9.6</var>taught by an actual instructor and delivered over the Internet;<br />
         		<a id="pl.9.7"></a><var>9.7</var>(10) provide viewing access to the online course at all times to the commissioner, <br />
         		<a id="pl.9.8"></a><var>9.8</var>excluding minimal downtime for updating and administration;<br />
         		<a id="pl.9.9"></a><var>9.9</var>(11) include a process to authenticate the student's identity;<br />
         		<a id="pl.9.10"></a><var>9.10</var>(12) inform the student and the commissioner how long after its purchase a course <br />
         		<a id="pl.9.11"></a><var>9.11</var>will be accessible;<br />
         		<a id="pl.9.12"></a><var>9.12</var>(13) inform the student that license education credit will not be awarded for taking <br />
         		<a id="pl.9.13"></a><var>9.13</var>the course after it loses its status as an approved course;<br />
         		<a id="pl.9.14"></a><var>9.14</var>(14) provide clear instructions on how to navigate through the course;<br />
         		<a id="pl.9.15"></a><var>9.15</var>(15) provide automatic bookmarking at any point in the course;<br />
         		<a id="pl.9.16"></a><var>9.16</var>(16) provide questions after each unit or chapter that must be answered before the <br />
         		<a id="pl.9.17"></a><var>9.17</var>student can proceed to the next unit or chapter;<br />
         		<a id="pl.9.18"></a><var>9.18</var>(17) include a reinforcement response when a quiz question is answered correctly;<br />
         		<a id="pl.9.19"></a><var>9.19</var>(18) include a response when a quiz question is answered incorrectly;<br />
         		<a id="pl.9.20"></a><var>9.20</var>(19) include a final examination in which the student must correctly answer 70 <br />
         		<a id="pl.9.21"></a><var>9.21</var>percent of the questions;<br />
         		<a id="pl.9.22"></a><var>9.22</var>(20) allow the student to go back and review any unit at any time, except during the <br />
         		<a id="pl.9.23"></a><var>9.23</var>final examination;<br />
         		<a id="pl.9.24"></a><var>9.24</var>(21) provide a course evaluation at the end of the course. At a minimum, the <br />
         		<a id="pl.9.25"></a><var>9.25</var>evaluation must ask the student to report any difficulties caused by the online education <br />
         		<a id="pl.9.26"></a><var>9.26</var>delivery method;<br />
         		<a id="pl.9.27"></a><var>9.27</var>(22) provide a completion certificate when the course and exam have been completed <br />
         		<a id="pl.9.28"></a><var>9.28</var>and the provider has verified the completion. Electronic certificates are sufficient and shall <br />
         		<a id="pl.9.29"></a><var>9.29</var>include the name of the provider, date and location of the course, educational program <br />
         		<a id="pl.9.30"></a><var>9.30</var>identification that was provided by the department, hours of instruction or continuing <br />
         		<a id="pl.9.31"></a><var>9.31</var>education hours, and licensee's or attendee's name and license, certification, or registration <br />
         		<a id="pl.9.32"></a><var>9.32</var>number or the last four digits of the licensee's or attendee's Social Security number; and<br />
         		<a id="pl.9.33"></a><var>9.33</var>(23) allow the commissioner the ability to electronically review the class to <br />
         		<a id="pl.9.34"></a><var>9.34</var>determine if credit can be approved.<br />
         		<a id="pl.10.1"></a><var>10.1</var>(c) The final examination must be either an encrypted online examination or a <br />
         		<a id="pl.10.2"></a><var>10.2</var>paper examination that is monitored by a proctor who certifies that the student took the <br />
         		<a id="pl.10.3"></a><var>10.3</var>examination.<br />
         		<br />
         		<a id="bill.1.14.0"></a><a id="pl.10.4"></a><var>10.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2010, section 326B.103, subdivision 3, is amended to read:<br />
         		<a id="pl.10.5"></a><var>10.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Agricultural building.</b> "Agricultural building" means a structure that is:<br />
         		<a id="pl.10.6"></a><var>10.6</var>(1) on agricultural land as ~~defined in~~ determined by the governing assessor for the <br />
         		<a id="pl.10.7"></a><var>10.7</var>municipality or county under section 
         <statute_ref>273.13, subdivision 23</statute_ref>~~,~~;<br />
         		<a id="pl.10.8"></a><var>10.8</var>(2) designed, constructed, and used to house farm implements, livestock, or <br />
         		<a id="pl.10.9"></a><var>10.9</var>agricultural ~~produce or~~ products under section 273.13, subdivision 23; and<br />
         		<a id="pl.10.10"></a><var>10.10</var>(3) used by the owner, lessee, and sublessee of the building and members of their <br />
         		<a id="pl.10.11"></a><var>10.11</var>immediate families, their employees, and persons engaged in the pickup or delivery of <br />
         		<a id="pl.10.12"></a><var>10.12</var>agricultural ~~produce or~~ products.<br />
         		<br />
         		<a id="bill.1.15.0"></a><a id="pl.10.13"></a><var>10.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2011 Supplement, section 326B.46, subdivision 1a, <br />
         		<a id="pl.10.14"></a><var>10.14</var>is amended to read:<br />
         		<a id="pl.10.15"></a><var>10.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Exemptions from licensing.</b> (a) An individual without a contractor <br />
         		<a id="pl.10.16"></a><var>10.16</var>license may do plumbing work on the individual's residence in accordance with <br />
         		<a id="pl.10.17"></a><var>10.17</var>subdivision 1, paragraph (a).<br />
         		<a id="pl.10.18"></a><var>10.18</var>(b) An individual who is an employee working on the maintenance and repair of <br />
         		<a id="pl.10.19"></a><var>10.19</var>plumbing equipment, apparatus, or facilities owned or leased by the individual's employer <br />
         		<a id="pl.10.20"></a><var>10.20</var>and which is within the limits of property owned or leased, and operated or maintained by <br />
         		<a id="pl.10.21"></a><var>10.21</var>the individual's employer, shall not be required to maintain a contractor license as long <br />
         		<a id="pl.10.22"></a><var>10.22</var>as the employer has on file with the commissioner a current certificate of responsible <br />
         		<a id="pl.10.23"></a><var>10.23</var>individual. The responsible individual must be a master plumber or, in an area of the <br />
         		<a id="pl.10.24"></a><var>10.24</var>state that is not a city or town with a population of more than 5,000 according to the <br />
         		<a id="pl.10.25"></a><var>10.25</var>last federal census, a restricted master plumber. The certificate must be signed by the <br />
         		<a id="pl.10.26"></a><var>10.26</var>responsible individual and must state that the person signing the certificate is responsible <br />
         		<a id="pl.10.27"></a><var>10.27</var>for ensuring that the maintenance and repair work performed by the employer's employees <br />
         		<a id="pl.10.28"></a><var>10.28</var>complies with sections 
         <statute_ref>326B.41</statute_ref> to 
         <statute_ref>326B.49</statute_ref>, all rules adopted under those sections and <br />
         		<a id="pl.10.29"></a><var>10.29</var>sections 
         <statute_ref>326B.50</statute_ref> to 
         <statute_ref>326B.59</statute_ref>, and all orders issued under section 
         <statute_ref>326B.082</statute_ref>. The employer <br />
         		<a id="pl.10.30"></a><var>10.30</var>must pay a filing fee to file a certificate of responsible individual with the commissioner. <br />
         		<a id="pl.10.31"></a><var>10.31</var>The certificate shall expire two years from the date of filing. In order to maintain a <br />
         		<a id="pl.10.32"></a><var>10.32</var>current certificate of responsible individual, the employer must resubmit a certificate of <br />
         		<a id="pl.10.33"></a><var>10.33</var>responsible individual, with a filing fee, no later than two years from the date of the <br />
         		<a id="pl.10.34"></a><var>10.34</var>previous submittal. The filing of the certificate of responsible individual does not exempt <br />
         		<a id="pl.11.1"></a><var>11.1</var>any employee of the employer from the requirements of this chapter regarding individual <br />
         		<a id="pl.11.2"></a><var>11.2</var>licensing as a plumber or registration as ~~a plumber's apprentice~~ an unlicensed individual.<br />
         		<a id="pl.11.3"></a><var>11.3</var>(c) If a contractor employs a licensed plumber, the licensed plumber does not need a <br />
         		<a id="pl.11.4"></a><var>11.4</var>separate contractor license to perform plumbing work on behalf of the employer within <br />
         		<a id="pl.11.5"></a><var>11.5</var>the scope of the licensed plumber's license.<br />
         		<a id="pl.11.6"></a><var>11.6</var>(d) A person may perform and offer to perform building sewer or water service <br />
         		<a id="pl.11.7"></a><var>11.7</var>installation without a contractor's license if the person is in compliance with the bond and <br />
         		<a id="pl.11.8"></a><var>11.8</var>insurance requirements of subdivision 2.<br />
         		<br />
         		<a id="bill.1.16.0"></a><a id="pl.11.9"></a><var>11.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2011 Supplement, section 326B.49, subdivision 1, is <br />
         		<a id="pl.11.10"></a><var>11.10</var>amended to read:<br />
         		<a id="pl.11.11"></a><var>11.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Application, examination, and license fees.</b> (a) Applications for <br />
         		<a id="pl.11.12"></a><var>11.12</var>master and journeyman plumber's licenses shall be made to the commissioner, with <br />
         		<a id="pl.11.13"></a><var>11.13</var>all fees required by section 
         <statute_ref>326B.092</statute_ref>. Unless the applicant is entitled to a renewal, <br />
         		<a id="pl.11.14"></a><var>11.14</var>the applicant shall be licensed by the commissioner only after passing a satisfactory <br />
         		<a id="pl.11.15"></a><var>11.15</var>examination developed and administered by the commissioner, based upon rules adopted <br />
         		<a id="pl.11.16"></a><var>11.16</var>by the Plumbing Board, showing fitness.<br />
         		<a id="pl.11.17"></a><var>11.17</var>(b) All initial journeyman plumber's licenses shall be effective for more than one <br />
         		<a id="pl.11.18"></a><var>11.18</var>calendar year and shall expire on December 31 of the year after the year in which the <br />
         		<a id="pl.11.19"></a><var>11.19</var>application is made. All master plumber's licenses shall expire on December 31 of each <br />
         		<a id="pl.11.20"></a><var>11.20</var>even-numbered year after issuance or renewal. The commissioner shall in a manner <br />
         		<a id="pl.11.21"></a><var>11.21</var>determined by the commissioner, without the need for any rulemaking under chapter 14, <br />
         		<a id="pl.11.22"></a><var>11.22</var>phase in the renewal of master and journeyman plumber's licenses from one year to two <br />
         		<a id="pl.11.23"></a><var>11.23</var>years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be <br />
         		<a id="pl.11.24"></a><var>11.24</var>two-year licenses.<br />
         		<a id="pl.11.25"></a><var>11.25</var>(c) Applications for contractor licenses shall be made to the commissioner, with all <br />
         		<a id="pl.11.26"></a><var>11.26</var>fees required by section 
         <statute_ref>326B.092</statute_ref>. All contractor licenses shall expire on December 31 of <br />
         		<a id="pl.11.27"></a><var>11.27</var>each odd-numbered year after issuance or renewal.<br />
         		<a id="pl.11.28"></a><var>11.28</var>(d) For purposes of calculating license fees and renewal license fees required under <br />
         		<a id="pl.11.29"></a><var>11.29</var>section 
         <statute_ref>326B.092</statute_ref>:<br />
         		<a id="pl.11.30"></a><var>11.30</var>(1) the following licenses shall be considered business licenses: plumbing contractor <br />
         		<a id="pl.11.31"></a><var>11.31</var>and restricted plumbing contractor;<br />
         		<a id="pl.11.32"></a><var>11.32</var>(2) the following licenses shall be considered master licenses: master plumber and <br />
         		<a id="pl.11.33"></a><var>11.33</var>restricted master plumber;<br />
         		<a id="pl.11.34"></a><var>11.34</var>(3) the following licenses shall be considered journeyman licenses: journeyman <br />
         		<a id="pl.11.35"></a><var>11.35</var>plumber and restricted journeyman plumber; and<br />
         		<a id="pl.12.1"></a><var>12.1</var>(4) the registration of ~~a plumber's apprentice~~ an unlicensed individual under section <br />
         		
         <statute_ref><a id="pl.12.2"></a><var>12.2</var>326B.47, subdivision 3
         </statute_ref>, shall be considered an entry level license.<br />
         		<a id="pl.12.3"></a><var>12.3</var>(e) For each filing of a certificate of responsible individual by an employer, the <br />
         		<a id="pl.12.4"></a><var>12.4</var>fee is $100.<br />
         		<a id="pl.12.5"></a><var>12.5</var>(f) The commissioner shall charge each person giving bond under section 
         <statute_ref>326B.46</statute_ref>, <br />
         		<a id="pl.12.6"></a><var>12.6</var>subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a <br />
         		<a id="pl.12.7"></a><var>12.7</var>licensed contractor.<br />
         		<br />
         		<a id="bill.1.17.0"></a><a id="pl.12.8"></a><var>12.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. <b> REPEALER.</b><br />
         		<a id="pl.12.9"></a><var>12.9</var>Minnesota Rules, parts 1300.0230, subpart 4; 1301.1201; 1302.0600; 3801.3640; <br />
         		<a id="pl.12.10"></a><var>12.10</var>3801.3650; 3801.3660; 3801.3670; 3801.3680; 3801.3690; 3801.3700; 3801.3710; <br />
         		<a id="pl.12.11"></a><var>12.11</var>3801.3720; 3801.3730; 3801.3740; 3801.3760; 3801.3790; and 3801.3800, are repealed.<br />
         		<br />
         		<a id="bill.2.0.0"></a><div class="xtend_ce"><a id="pl.12.12"></a><var>12.12</var><b>ARTICLE 2</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.12.13"></a><var>12.13</var><b>EMPLOYEE CLASSIFICATION OF INDEPENDENT CONTRACTORS</b><br />
            		
         </div><br />
         		<a id="bill.2.1.0"></a><a id="pl.12.14"></a><var>12.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 181.723, subdivision 1, is amended to read:<br />
         		<a id="pl.12.15"></a><var>12.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b> Definitions.</b> The definitions in this subdivision apply to this section.<br />
         		<a id="pl.12.16"></a><var>12.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) "Person" means any individual, limited liability ~~corporation~~ company, limited <br />
         		<a id="pl.12.17"></a><var>12.17</var>liability partnership, corporation, partnership, incorporated or unincorporated association, <br />
         		<a id="pl.12.18"></a><var>12.18</var>sole proprietorship, joint stock company, or any other legal or commercial entity.<br />
         		<a id="pl.12.19"></a><var>12.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) "Department" means the Department of Labor and Industry.<br />
         		<a id="pl.12.20"></a><var>12.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) "Commissioner" means the commissioner of labor and industry or a duly <br />
         		<a id="pl.12.21"></a><var>12.21</var>designated representative of the commissioner who is either an employee of the <br />
         		<a id="pl.12.22"></a><var>12.22</var>Department of Labor and Industry or person working under contract with the Department <br />
         		<a id="pl.12.23"></a><var>12.23</var>of Labor and Industry.<br />
         		<a id="pl.12.24"></a><var>12.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) "Individual" means a human being.<br />
         		<a id="pl.12.25"></a><var>12.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) "Day" means calendar day unless otherwise provided.<br />
         		<a id="pl.12.26"></a><var>12.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) "Knowingly" means knew or could have known with the exercise of reasonable <br />
         		<a id="pl.12.27"></a><var>12.27</var>diligence.<br />
         		<a id="pl.12.28"></a><var>12.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) "Document" or "documents" includes papers; books; records; memoranda; data; <br />
         		<a id="pl.12.29"></a><var>12.29</var>contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; <br />
         		<a id="pl.12.30"></a><var>12.30</var>records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars <br />
         		<a id="pl.12.31"></a><var>12.31</var>maintained in any form or manner.<br />
         		<a id="pl.12.32"></a><var>12.32</var>(h) "Business entity" means a person other than an individual or a sole proprietor.<br />
         		<br />
         		<a id="bill.2.2.0"></a><a id="pl.12.33"></a><var>12.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 181.723, subdivision 4, is amended to read:<br />
         		<a id="pl.13.1"></a><var>13.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Independent contractor.</b> (a) An individual is an independent contractor <br />
         		<a id="pl.13.2"></a><var>13.2</var>and not an employee of the person for whom the individual is performing services in the <br />
         		<a id="pl.13.3"></a><var>13.3</var>course of the person's trade, business, profession, or occupation only if ~~(1) the individual~~ <br />
         		<a id="pl.13.4"></a><var>13.4</var>~~holds a current independent contractor exemption certificate issued by the commissioner;~~ <br />
         		<a id="pl.13.5"></a><var>13.5</var>~~and (2) the individual is performing services for the person under the independent~~ <br />
         		<a id="pl.13.6"></a><var>13.6</var>~~contractor exemption certificate as provided in subdivision 6. The requirements in clauses~~ <br />
         		<a id="pl.13.7"></a><var>13.7</var>~~(1) and (2) must be met in order to qualify as an independent contractor and not as an~~ <br />
         		<a id="pl.13.8"></a><var>13.8</var>~~employee of the person for whom the individual is performing services in the course of~~ <br />
         		<a id="pl.13.9"></a><var>13.9</var>~~the person's trade, business, profession, or occupation.~~ the individual is registered with the <br />
         		<a id="pl.13.10"></a><var>13.10</var>Department of Labor and Industry, if required under subdivision 4a, and the individual:<br />
         		<a id="pl.13.11"></a><var>13.11</var>(1) maintains a separate business with the individual's own office, equipment, <br />
         		<a id="pl.13.12"></a><var>13.12</var>materials, and other facilities;<br />
         		<a id="pl.13.13"></a><var>13.13</var>(2)(i) holds or has applied for a federal employer identification number or (ii) has <br />
         		<a id="pl.13.14"></a><var>13.14</var>filed business or self-employment income tax returns with the federal Internal Revenue <br />
         		<a id="pl.13.15"></a><var>13.15</var>Service if the individual has performed services in the previous year;<br />
         		<a id="pl.13.16"></a><var>13.16</var>(3) is operating under contract to perform the specific services for the person <br />
         		<a id="pl.13.17"></a><var>13.17</var>for specific amounts of money and under which the individual controls the means of <br />
         		<a id="pl.13.18"></a><var>13.18</var>performing the services;<br />
         		<a id="pl.13.19"></a><var>13.19</var>(4) is incurring the main expenses related to the services that the individual is <br />
         		<a id="pl.13.20"></a><var>13.20</var>performing for the person under the contract;<br />
         		<a id="pl.13.21"></a><var>13.21</var>(5) is responsible for the satisfactory completion of the services that the individual <br />
         		<a id="pl.13.22"></a><var>13.22</var>has contracted to perform for the person and is liable for a failure to complete the services;<br />
         		<a id="pl.13.23"></a><var>13.23</var>(6) receives compensation from the person for the services performed under the <br />
         		<a id="pl.13.24"></a><var>13.24</var>contract on a commission or per-job or competitive bid basis and not on any other basis;<br />
         		<a id="pl.13.25"></a><var>13.25</var>(7) may realize a profit or suffer a loss under the contract to perform services for <br />
         		<a id="pl.13.26"></a><var>13.26</var>the person;<br />
         		<a id="pl.13.27"></a><var>13.27</var>(8) has continuing or recurring business liabilities or obligations; and<br />
         		<a id="pl.13.28"></a><var>13.28</var>(9) the success or failure of the individual's business depends on the relationship of <br />
         		<a id="pl.13.29"></a><var>13.29</var>business receipts to expenditures.<br />
         		<a id="pl.13.30"></a><var>13.30</var>(b) If an individual is an owner or partial owner of a business entity, the individual is <br />
         		<a id="pl.13.31"></a><var>13.31</var>an employee of the person for whom the individual is performing services in the course <br />
         		<a id="pl.13.32"></a><var>13.32</var>of the person's trade, business, profession, or occupation, and is not an employee of the <br />
         		<a id="pl.13.33"></a><var>13.33</var>business entity in which the individual has an ownership interest, unless:<br />
         		<a id="pl.13.34"></a><var>13.34</var>(1) the business entity meets the nine factors in paragraph (a);<br />
         		<a id="pl.13.35"></a><var>13.35</var>(2) invoices are submitted in the name of the business entity;<br />
         		<a id="pl.13.36"></a><var>13.36</var>(3) the business entity is registered with the secretary of state, if required; and<br />
         		<a id="pl.14.1"></a><var>14.1</var>(4) the business entity is registered with the Department of Labor and Industry, <br />
         		<a id="pl.14.2"></a><var>14.2</var>if required under subdivision 4a.<br />
         		<br />
         		<a id="bill.2.3.0"></a><a id="pl.14.3"></a><var>14.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision <br />
         		<a id="pl.14.4"></a><var>14.4</var>to read:<br />
         		<a id="pl.14.5"></a><var>14.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4a. <b>Registration pilot project.</b> (a) The commissioner shall implement a pilot <br />
         		<a id="pl.14.6"></a><var>14.6</var>project, effective July 1, 2012, for the registration of persons who perform public or <br />
         		<a id="pl.14.7"></a><var>14.7</var>private sector commercial or residential building construction or improvement services <br />
         		<a id="pl.14.8"></a><var>14.8</var>as described in subdivision 2. The purpose of the pilot project is to evaluate whether the <br />
         		<a id="pl.14.9"></a><var>14.9</var>information obtained through registration assists the Department of Labor and Industry, <br />
         		<a id="pl.14.10"></a><var>14.10</var>the Department of Employment and Economic Development, and the Department of <br />
         		<a id="pl.14.11"></a><var>14.11</var>Revenue to enforce laws related to misclassification of employees. The commissioner <br />
         		<a id="pl.14.12"></a><var>14.12</var>shall issue a report to the legislature no later than January 1, 2014, on recommendations <br />
         		<a id="pl.14.13"></a><var>14.13</var>for amendments to the registration program, including reasonable registration fees to be <br />
         		<a id="pl.14.14"></a><var>14.14</var>used to aid in enforcing misclassification laws. The commissioner must not charge a fee <br />
         		<a id="pl.14.15"></a><var>14.15</var>for registration under the pilot project, but may take the enforcement action specified in <br />
         		<a id="pl.14.16"></a><var>14.16</var>subdivision 8a. The pilot project shall expire on June 30, 2014, unless extended by the <br />
         		<a id="pl.14.17"></a><var>14.17</var>legislature.<br />
         		<a id="pl.14.18"></a><var>14.18</var>(b) Except as provided in paragraph (c), any person who performs construction <br />
         		<a id="pl.14.19"></a><var>14.19</var>services in the state on or after September 15, 2012, must register with the commissioner <br />
         		<a id="pl.14.20"></a><var>14.20</var>as provided in subdivision 5 before performing construction services for another person. <br />
         		<a id="pl.14.21"></a><var>14.21</var>The requirements for registration under this subdivision are not a substitute for, and do <br />
         		<a id="pl.14.22"></a><var>14.22</var>not relieve a person from complying with, any other law requiring that the person be <br />
         		<a id="pl.14.23"></a><var>14.23</var>licensed, registered, or certified.<br />
         		<a id="pl.14.24"></a><var>14.24</var>(c) The registration requirements in this subdivision do not apply to:<br />
         		<a id="pl.14.25"></a><var>14.25</var>(1) a person who, at the time the person is performing the construction services, <br />
         		<a id="pl.14.26"></a><var>14.26</var>holds a current license, certificate, or registration under chapter 299M or 326B;<br />
         		<a id="pl.14.27"></a><var>14.27</var>(2) a person who holds a current independent contractor exemption certificate <br />
         		<a id="pl.14.28"></a><var>14.28</var>issued under this section that is in effect on September 15, 2012, except that the person <br />
         		<a id="pl.14.29"></a><var>14.29</var>must register under this section no later than the date the exemption certificate expires, is <br />
         		<a id="pl.14.30"></a><var>14.30</var>revoked, or is canceled;<br />
         		<a id="pl.14.31"></a><var>14.31</var>(3) a person who has given a bond to the state under section 326B.197 or 326B.46;<br />
         		<a id="pl.14.32"></a><var>14.32</var>(4) an employee of the person performing the construction services, if the person <br />
         		<a id="pl.14.33"></a><var>14.33</var>was in compliance with laws related to employment of the individual at the time the <br />
         		<a id="pl.14.34"></a><var>14.34</var>construction services were performed;<br />
         		<a id="pl.15.1"></a><var>15.1</var>(5) an architect or professional engineer engaging in professional practice as defined <br />
         		<a id="pl.15.2"></a><var>15.2</var>in section 326.02, subdivisions 2 and 3;<br />
         		<a id="pl.15.3"></a><var>15.3</var>(6) a school district or technical college governed under chapter 136F; <br />
         		<a id="pl.15.4"></a><var>15.4</var>(7) a person providing construction services on a volunteer basis, including but not <br />
         		<a id="pl.15.5"></a><var>15.5</var>limited to Habitat for Humanity and Builders Outreach Foundation, and their individual <br />
         		<a id="pl.15.6"></a><var>15.6</var>volunteers when engaged in activities on their behalf; or<br />
         		<a id="pl.15.7"></a><var>15.7</var>(8) a person exempt from licensing under section 326B.805, subdivision 6, clause (5).<br />
         		<br />
         		<a id="bill.2.4.0"></a><a id="pl.15.8"></a><var>15.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2011 Supplement, section 181.723, subdivision 5, is <br />
         		<a id="pl.15.9"></a><var>15.9</var>amended to read:<br />
         		<a id="pl.15.10"></a><var>15.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Registration </b><b>application.</b> ~~To obtain an independent contractor exemption~~ <br />
         		<a id="pl.15.11"></a><var>15.11</var>~~certificate, the individual must submit~~ (a) Persons required to register under subdivision 4a <br />
         		<a id="pl.15.12"></a><var>15.12</var>must submit electronically, in the manner prescribed by the commissioner, a complete <br />
         		<a id="pl.15.13"></a><var>15.13</var>application ~~and the certificate fee required under subdivision 14~~ according to paragraphs <br />
         		<a id="pl.15.14"></a><var>15.14</var>(b) to (d).<br />
         		<a id="pl.15.15"></a><var>15.15</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(a)~~ (b) A complete application must include all of the following information about <br />
         		<a id="pl.15.16"></a><var>15.16</var>any individual who is registering as an individual or a sole proprietor, or who owns 25 <br />
         		<a id="pl.15.17"></a><var>15.17</var>percent or more of a business entity being registered:<br />
         		<a id="pl.15.18"></a><var>15.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the individual's full legal name and title at applicant's business;<br />
         		<a id="pl.15.19"></a><var>15.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the individual's ~~residence~~ business address and telephone number;<br />
         		<a id="pl.15.20"></a><var>15.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the ~~individual's business name, address, and telephone number;~~ percentage of the <br />
         		<a id="pl.15.21"></a><var>15.21</var>applicant's business owned by the individual; and<br />
         		<a id="pl.15.22"></a><var>15.22</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(4) the services for which the individual is seeking an independent contractor~~ <br />
         		<a id="pl.15.23"></a><var>15.23</var>~~exemption certificate;~~<br />
         		<a id="pl.15.24"></a><var>15.24</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(5)~~ (4) the individual's Social Security number~~;~~.<br />
         		<a id="pl.15.25"></a><var>15.25</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(6) the individual's or the individual's business federal employer identification~~ <br />
         		<a id="pl.15.26"></a><var>15.26</var>~~number, if a number has been issued to the individual or the individual's business;~~<br />
         		<a id="pl.15.27"></a><var>15.27</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(7) any information or documentation that the commissioner requires by rule that~~ <br />
         		<a id="pl.15.28"></a><var>15.28</var>~~will assist the department in determining whether to grant or deny the individual's~~ <br />
         		<a id="pl.15.29"></a><var>15.29</var>~~application; and~~<br />
         		<a id="pl.15.30"></a><var>15.30</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(8) the individual's sworn statement that the individual meets all of the following~~ <br />
         		<a id="pl.15.31"></a><var>15.31</var>~~conditions:~~<br />
         		<a id="pl.15.32"></a><var>15.32</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(i) maintains a separate business with the individual's own office, equipment,~~ <br />
         		<a id="pl.15.33"></a><var>15.33</var>~~materials, and other facilities;~~<br />
         		<a id="pl.15.34"></a><var>15.34</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(ii) holds or has applied for a federal employer identification number or has filed~~ <br />
         		<a id="pl.15.35"></a><var>15.35</var>~~business or self-employment income tax returns with the federal Internal Revenue Service~~ <br />
         		<a id="pl.16.1"></a><var>16.1</var>~~if the person has performed services in the previous year for which the individual is~~ <br />
         		<a id="pl.16.2"></a><var>16.2</var>~~seeking the independent contractor exemption certificate;~~<br />
         		<a id="pl.16.3"></a><var>16.3</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(iii) operates under contracts to perform specific services for specific amounts of~~ <br />
         		<a id="pl.16.4"></a><var>16.4</var>~~money and under which the individual controls the means of performing the services;~~<br />
         		<a id="pl.16.5"></a><var>16.5</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(iv) incurs the main expenses related to the service that the individual performs~~ <br />
         		<a id="pl.16.6"></a><var>16.6</var>~~under contract;~~<br />
         		<a id="pl.16.7"></a><var>16.7</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(v) is responsible for the satisfactory completion of services that the individual~~ <br />
         		<a id="pl.16.8"></a><var>16.8</var>~~contracts to perform and is liable for a failure to complete the service;~~<br />
         		<a id="pl.16.9"></a><var>16.9</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(vi) receives compensation for service performed under a contract on a commission~~ <br />
         		<a id="pl.16.10"></a><var>16.10</var>~~or per-job or competitive bid basis and not on any other basis;~~<br />
         		<a id="pl.16.11"></a><var>16.11</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(vii) may realize a profit or suffer a loss under contracts to perform service;~~<br />
         		<a id="pl.16.12"></a><var>16.12</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(viii) has continuing or recurring business liabilities or obligations; and~~<br />
         		<a id="pl.16.13"></a><var>16.13</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(ix) the success or failure of the individual's business depends on the relationship of~~ <br />
         		<a id="pl.16.14"></a><var>16.14</var>~~business receipts to expenditures.~~<br />
         		<a id="pl.16.15"></a><var>16.15</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(b) Individuals who are applying for or renewing a residential building contractor or~~ <br />
         		<a id="pl.16.16"></a><var>16.16</var>~~residential remodeler license under sections~~ 
         <statute_ref>~~326B.197, 326B.802, 326B.805, 326B.81,~~ <br />
            		<a id="pl.16.17"></a><var>16.17</var>~~326B.815, 326B.821~~
         </statute_ref> ~~to~~ 
         <statute_ref>~~326B.86, 326B.87~~</statute_ref> ~~to~~ 
         <statute_ref>~~326B.885~~</statute_ref>~~, and~~ 
         <statute_ref>~~327B.041~~</statute_ref>~~, and any rules~~ <br />
         		<a id="pl.16.18"></a><var>16.18</var>~~promulgated pursuant thereto, may simultaneously apply for or renew an independent~~ <br />
         		<a id="pl.16.19"></a><var>16.19</var>~~contractor exemption certificate. The commissioner shall create an application form~~ <br />
         		<a id="pl.16.20"></a><var>16.20</var>~~that allows for the simultaneous application for both a residential building contractor~~ <br />
         		<a id="pl.16.21"></a><var>16.21</var>~~or residential remodeler license and an independent contractor exemption certificate.~~ <br />
         		<a id="pl.16.22"></a><var>16.22</var>~~If individuals simultaneously apply for or renew a residential building contractor or~~ <br />
         		<a id="pl.16.23"></a><var>16.23</var>~~residential remodeler license and an independent contractor exemption certificate using~~ <br />
         		<a id="pl.16.24"></a><var>16.24</var>~~the form created by the commissioner, individuals shall only be required to provide, in~~ <br />
         		<a id="pl.16.25"></a><var>16.25</var>~~addition to the information required by section~~ 
         <statute_ref>~~326B.83~~</statute_ref> ~~and rules promulgated pursuant~~ <br />
         		<a id="pl.16.26"></a><var>16.26</var>~~thereto, the sworn statement required by paragraph (a), clause (8), and any additional~~ <br />
         		<a id="pl.16.27"></a><var>16.27</var>~~information required by this subdivision that is not also required by section~~ 
         <statute_ref>~~326B.83~~ </statute_ref>~~and~~ <br />
         		<a id="pl.16.28"></a><var>16.28</var>~~any rules promulgated thereto. An independent contractor exemption certificate that is in~~ <br />
         		<a id="pl.16.29"></a><var>16.29</var>~~effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by~~ <br />
         		<a id="pl.16.30"></a><var>16.30</var>~~the commissioner or canceled by the individual.~~<br />
         		<a id="pl.16.31"></a><var>16.31</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(c) Within 30 days of receiving a complete application and the certificate fee, the~~ <br />
         		<a id="pl.16.32"></a><var>16.32</var>~~commissioner must either grant or deny the application. The commissioner may deny~~ <br />
         		<a id="pl.16.33"></a><var>16.33</var>~~an application for an independent contractor exemption certificate if the individual has~~ <br />
         		<a id="pl.16.34"></a><var>16.34</var>~~not submitted a complete application and certificate fee or if the individual does not~~ <br />
         		<a id="pl.16.35"></a><var>16.35</var>~~meet all of the conditions for holding the independent contractor exemption certificate.~~ <br />
         		<a id="pl.16.36"></a><var>16.36</var>~~The commissioner may revoke an independent contractor exemption certificate if the~~ <br />
         		<a id="pl.17.1"></a><var>17.1</var>~~commissioner determines that the individual no longer meets all of the conditions for~~ <br />
         		<a id="pl.17.2"></a><var>17.2</var>~~holding the independent contractor exemption certificate, commits any of the actions~~ <br />
         		<a id="pl.17.3"></a><var>17.3</var>~~set out in subdivision 7, or fails to cooperate with a department investigation into the~~ <br />
         		<a id="pl.17.4"></a><var>17.4</var>~~continued validity of the individual's certificate. Once issued, an independent contractor~~ <br />
         		<a id="pl.17.5"></a><var>17.5</var>~~exemption certificate remains in effect for four years unless:~~<br />
         		<a id="pl.17.6"></a><var>17.6</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(1) revoked by the commissioner; or~~<br />
         		<a id="pl.17.7"></a><var>17.7</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(2) canceled by the individual.~~<br />
         		<a id="pl.17.8"></a><var>17.8</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(d) If the department denies an individual's original or renewal application for~~ <br />
         		<a id="pl.17.9"></a><var>17.9</var>~~an independent contractor exemption certificate or revokes an independent contractor~~ <br />
         		<a id="pl.17.10"></a><var>17.10</var>~~exemption certificate, the commissioner shall issue to the individual an order denying or~~ <br />
         		<a id="pl.17.11"></a><var>17.11</var>~~revoking the certificate. The commissioner may issue an administrative penalty order to~~ <br />
         		<a id="pl.17.12"></a><var>17.12</var>~~an individual or person who commits any of the actions set out in subdivision 7. The~~ <br />
         		<a id="pl.17.13"></a><var>17.13</var>~~commissioner may file and enforce the unpaid portion of a penalty as a judgment in~~ <br />
         		<a id="pl.17.14"></a><var>17.14</var>~~district court without further notice or additional proceedings.~~<br />
         		<a id="pl.17.15"></a><var>17.15</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(e) An individual or person to whom the commissioner issues an order under~~ <br />
         		<a id="pl.17.16"></a><var>17.16</var>~~paragraph (d) shall have 30 days after service of the order to request a hearing. The~~ <br />
         		<a id="pl.17.17"></a><var>17.17</var>~~request for hearing must be in writing and must be served on or faxed to the commissioner~~ <br />
         		<a id="pl.17.18"></a><var>17.18</var>~~at the address or facsimile number specified in the order by the 30th day after service of~~ <br />
         		<a id="pl.17.19"></a><var>17.19</var>~~the order. If the individual does not request a hearing or if the individual's request for a~~ <br />
         		<a id="pl.17.20"></a><var>17.20</var>~~hearing is not served on or faxed to the commissioner by the 30th day after service of the~~ <br />
         		<a id="pl.17.21"></a><var>17.21</var>~~order, the order shall become a final order of the commissioner and will not be subject to~~ <br />
         		<a id="pl.17.22"></a><var>17.22</var>~~review by any court or agency. The date on which a request for hearing is served by mail~~ <br />
         		<a id="pl.17.23"></a><var>17.23</var>~~shall be the postmark date on the envelope in which the request for hearing is mailed. If~~ <br />
         		<a id="pl.17.24"></a><var>17.24</var>~~the individual serves or faxes a timely request for hearing, the hearing shall be a contested~~ <br />
         		<a id="pl.17.25"></a><var>17.25</var>~~case hearing and shall be held in accordance with chapter 14.~~<br />
         		<a id="pl.17.26"></a><var>17.26</var>(c) A complete application must also include the following information:<br />
         		<a id="pl.17.27"></a><var>17.27</var>(1) the applicant's legal name; assumed name filed with the secretary of state, if any; <br />
         		<a id="pl.17.28"></a><var>17.28</var>designated business address; physical address; telephone number; and e-mail address;<br />
         		<a id="pl.17.29"></a><var>17.29</var>(2) the applicant's Minnesota tax identification number, if one is required or has <br />
         		<a id="pl.17.30"></a><var>17.30</var>been issued;<br />
         		<a id="pl.17.31"></a><var>17.31</var>(3) the applicant's federal employer identification number, if one is required or <br />
         		<a id="pl.17.32"></a><var>17.32</var>has been issued;<br />
         		<a id="pl.17.33"></a><var>17.33</var>(4) evidence of the active status of the applicant's business filings with the secretary <br />
         		<a id="pl.17.34"></a><var>17.34</var>of state, if one is required or has been issued;<br />
         		<a id="pl.17.35"></a><var>17.35</var>(5) whether the applicant has any employees at the time the application is filed;<br />
         		<a id="pl.18.1"></a><var>18.1</var>(6) the names of all other persons with an ownership interest in the business entity <br />
         		<a id="pl.18.2"></a><var>18.2</var>who are not identified in paragraph (b), and the percentage of the interest owned by each <br />
         		<a id="pl.18.3"></a><var>18.3</var>person, except that the names of shareholders with less than ten percent ownership in a <br />
         		<a id="pl.18.4"></a><var>18.4</var>publicly traded corporation need not be provided;<br />
         		<a id="pl.18.5"></a><var>18.5</var>(7) information documenting compliance with workers' compensation and <br />
         		<a id="pl.18.6"></a><var>18.6</var>unemployment insurance laws;<br />
         		<a id="pl.18.7"></a><var>18.7</var>(8) a certification that the person signing the application has: reviewed it; determined <br />
         		<a id="pl.18.8"></a><var>18.8</var>that the information provided is true and accurate; and determined that the person signing <br />
         		<a id="pl.18.9"></a><var>18.9</var>is authorized to sign and file the application as an agent of the applicant. The name of the <br />
         		<a id="pl.18.10"></a><var>18.10</var>person signing, entered on an electronic application, shall constitute a valid signature of <br />
         		<a id="pl.18.11"></a><var>18.11</var>the agent on behalf of the applicant; and<br />
         		<a id="pl.18.12"></a><var>18.12</var>(9) a signed authorization for the Department of Labor and Industry to verify the <br />
         		<a id="pl.18.13"></a><var>18.13</var>information provided on or with the application.<br />
         		<a id="pl.18.14"></a><var>18.14</var>(d) A registered person must notify the commissioner within 15 days after there is a <br />
         		<a id="pl.18.15"></a><var>18.15</var>change in any of the information on the application as approved. This notification must <br />
         		<a id="pl.18.16"></a><var>18.16</var>be provided electronically in the manner prescribed by the commissioner. However, if <br />
         		<a id="pl.18.17"></a><var>18.17</var>the business entity structure, legal form of the business entity, or business ownership has <br />
         		<a id="pl.18.18"></a><var>18.18</var>changed, the person must submit a new registration application and registration fee, if <br />
         		<a id="pl.18.19"></a><var>18.19</var>any, for the new business entity.<br />
         		<a id="pl.18.20"></a><var>18.20</var>(e) The registered person must remain registered while providing construction <br />
         		<a id="pl.18.21"></a><var>18.21</var>services for another person. The provisions of sections 326B.091 and 326B.094 to <br />
         		<a id="pl.18.22"></a><var>18.22</var>326B.097 apply to this section.<br />
         		<br />
         		<a id="bill.2.5.0"></a><a id="pl.18.23"></a><var>18.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision <br />
         		<a id="pl.18.24"></a><var>18.24</var>to read:<br />
         		<a id="pl.18.25"></a><var>18.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5a. <b>Web site.</b> (a) The commissioner shall develop and maintain a Web site <br />
         		<a id="pl.18.26"></a><var>18.26</var>on which applicants for registration can submit a registration application. The Web site <br />
         		<a id="pl.18.27"></a><var>18.27</var>shall be designed to receive and process registration applications and promptly issue <br />
         		<a id="pl.18.28"></a><var>18.28</var>registration certificates electronically to successful applicants.<br />
         		<a id="pl.18.29"></a><var>18.29</var>(b) The commissioner shall maintain the certificates of registration on the <br />
         		<a id="pl.18.30"></a><var>18.30</var>department's official public Web site, which shall include the following information:<br />
         		<a id="pl.18.31"></a><var>18.31</var>(1) the registered person's legal business name, including any assumed name, as <br />
         		<a id="pl.18.32"></a><var>18.32</var>filed with the secretary of state;<br />
         		<a id="pl.18.33"></a><var>18.33</var>(2) the person's business address designated on the application; and <br />
         		<a id="pl.18.34"></a><var>18.34</var>(3) the effective date of the registration and the expiration date.<br />
         		<br />
         		<a id="bill.2.6.0"></a><a id="pl.19.1"></a><var>19.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 181.723, subdivision 7, is amended to read:<br />
         		<a id="pl.19.2"></a><var>19.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Prohibited activities.</b> (a) The prohibited activities in this subdivision are <br />
         		<a id="pl.19.3"></a><var>19.3</var>in addition to those prohibited in sections 326B.081 to 326B.085.<br />
         		<a id="pl.19.4"></a><var>19.4</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(a)~~ (b) An individual shall not~~:~~<br />
         		<a id="pl.19.5"></a><var>19.5</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(1) perform work as an independent contractor who meets the qualifications under~~ <br />
         		<a id="pl.19.6"></a><var>19.6</var>~~subdivision 6 without first obtaining from the department an independent contractor~~ <br />
         		<a id="pl.19.7"></a><var>19.7</var>~~exemption certificate;~~<br />
         		<a id="pl.19.8"></a><var>19.8</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(2) perform work as an independent contractor when the department has denied or~~ <br />
         		<a id="pl.19.9"></a><var>19.9</var>~~revoked the individual's independent contractor exemption certificate;~~<br />
         		<a id="pl.19.10"></a><var>19.10</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(3) transfer to another individual or allow another individual to use the individual's~~ <br />
         		<a id="pl.19.11"></a><var>19.11</var>~~independent contractor exemption certificate;~~<br />
         		<a id="pl.19.12"></a><var>19.12</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(4) alter or falsify an independent contractor exemption certificate;~~<br />
         		<a id="pl.19.13"></a><var>19.13</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(5) misrepresent the individual's status as an independent contractor; or~~<br />
         		<a id="pl.19.14"></a><var>19.14</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(6) make a false material statement, representation, or certification; omit material~~ <br />
         		<a id="pl.19.15"></a><var>19.15</var>~~information; or alter, conceal, or fail to file a document required by this section or any~~ <br />
         		<a id="pl.19.16"></a><var>19.16</var>~~rule promulgated by the commissioner under rulemaking authority set out in this section.~~ <br />
         		<a id="pl.19.17"></a><var>19.17</var>hold himself or herself out as an independent contractor unless the individual meets the <br />
         		<a id="pl.19.18"></a><var>19.18</var>requirements of subdivision 4.<br />
         		<a id="pl.19.19"></a><var>19.19</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(b)~~ (c) A person who provides construction services in the course of the person's <br />
         		<a id="pl.19.20"></a><var>19.20</var>trade, business, occupation, or profession shall not:<br />
         		<a id="pl.19.21"></a><var>19.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) require an individual through coercion, misrepresentation, or fraudulent means to <br />
         		<a id="pl.19.22"></a><var>19.22</var>adopt independent contractor status or form a business entity;<br />
         		<a id="pl.19.23"></a><var>19.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) knowingly misrepresent ~~that an individual who has not been issued~~ or misclassify <br />
         		<a id="pl.19.24"></a><var>19.24</var>an individual as an independent contractor ~~exemption certificate or is not performing~~ <br />
         		<a id="pl.19.25"></a><var>19.25</var>~~services for the person under an independent contractor exemption certificate is an~~ <br />
         		<a id="pl.19.26"></a><var>19.26</var>~~independent contractor~~; ~~or~~<br />
         		<a id="pl.19.27"></a><var>19.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) contract with or perform construction services for another person without first <br />
         		<a id="pl.19.28"></a><var>19.28</var>being registered if required by subdivision 4a; <br />
         		<a id="pl.19.29"></a><var>19.29</var>(4) ~~make a false material statement, representation, or certification; omit material~~ <br />
         		<a id="pl.19.30"></a><var>19.30</var>~~information; or alter, conceal, or fail to file a document required by this section or any~~ <br />
         		<a id="pl.19.31"></a><var>19.31</var>~~rule promulgated by the commissioner under rulemaking authority set out in this section.~~ <br />
         		<a id="pl.19.32"></a><var>19.32</var>contract with or pay another person to perform construction services if the other person <br />
         		<a id="pl.19.33"></a><var>19.33</var>is not registered if required by subdivision 4a. All payments to an unregistered person <br />
         		<a id="pl.19.34"></a><var>19.34</var>for construction services on a single project site shall be considered a single violation. It <br />
         		<a id="pl.19.35"></a><var>19.35</var>is not a violation of this clause:<br />
         		<a id="pl.20.1"></a><var>20.1</var>(i) for a person to contract with or pay an unregistered person if the unregistered <br />
         		<a id="pl.20.2"></a><var>20.2</var>person was registered at the time the contract for construction services was entered into; or<br />
         		<a id="pl.20.3"></a><var>20.3</var>(ii) for a homeowner or business to contract with or pay an unregistered person if <br />
         		<a id="pl.20.4"></a><var>20.4</var>the homeowner or business is not in the trade, business, profession, or occupation of <br />
         		<a id="pl.20.5"></a><var>20.5</var>performing building construction or improvement services; or<br />
         		<a id="pl.20.6"></a><var>20.6</var>(5) be penalized for violations of this subdivision that are committed by another <br />
         		<a id="pl.20.7"></a><var>20.7</var>person. This clause applies only to violations of this paragraph.<br />
         		<a id="pl.20.8"></a><var>20.8</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(c) A person for whom an individual is performing services must obtain a copy of the~~ <br />
         		<a id="pl.20.9"></a><var>20.9</var>~~individual's independent contractor exemption certificate before services may commence.~~ <br />
         		<a id="pl.20.10"></a><var>20.10</var>~~A copy of the independent contractor exemption certificate must be retained for five years~~ <br />
         		<a id="pl.20.11"></a><var>20.11</var>~~from the date of receipt by the person for whom an individual is performing services.~~<br />
         		<br />
         		<a id="bill.2.7.0"></a><a id="pl.20.12"></a><var>20.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision <br />
         		<a id="pl.20.13"></a><var>20.13</var>to read:<br />
         		<a id="pl.20.14"></a><var>20.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8a. <b>Enforcement; remedies; and penalties.</b> Notwithstanding the maximum <br />
         		<a id="pl.20.15"></a><var>20.15</var>penalty amount in section 326B.082, subdivisions 7 and 12, the maximum penalty for <br />
         		<a id="pl.20.16"></a><var>20.16</var>failure to register is $2,000, but the commissioner shall forgive the penalty if the person <br />
         		<a id="pl.20.17"></a><var>20.17</var>registers within 30 days of the date of the penalty order.<br />
         		<br />
         		<a id="bill.2.8.0"></a><a id="pl.20.18"></a><var>20.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 181.723, subdivision 10, is amended to read:<br />
         		<a id="pl.20.19"></a><var>20.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Notice requirements.</b> Unless otherwise specified, service of a document <br />
         		<a id="pl.20.20"></a><var>20.20</var>on a person under this section may be by mail, by personal service, or in accordance with <br />
         		<a id="pl.20.21"></a><var>20.21</var>any consent to service filed with the commissioner. Service by mail shall be accomplished <br />
         		<a id="pl.20.22"></a><var>20.22</var>in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service <br />
         		<a id="pl.20.23"></a><var>20.23</var>shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, subpart <br />
         		<a id="pl.20.24"></a><var>20.24</var>3. Notice of a penalty order for failure to register must include a statement that the penalty <br />
         		<a id="pl.20.25"></a><var>20.25</var>shall be forgiven if the person registers within 30 days of the date of the penalty order. <br />
         		<br />
         		<a id="bill.2.9.0"></a><a id="pl.20.26"></a><var>20.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 181.723, subdivision 15, is amended to read:<br />
         		<a id="pl.20.27"></a><var>20.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Notice to commissioner; review by commissioner of revenue.</b> When <br />
         		<a id="pl.20.28"></a><var>20.28</var>the commissioner has reason to believe that ~~an individual who holds a certificate has~~ <br />
         		<a id="pl.20.29"></a><var>20.29</var>~~failed to maintain all the conditions required by subdivision 6 or is not performing~~ <br />
         		<a id="pl.20.30"></a><var>20.30</var>~~services for a person under the independent contractor exemption certificate~~ a person has <br />
         		<a id="pl.20.31"></a><var>20.31</var>violated subdivision 7, paragraph (b); or (c), clause (1) or (2), the commissioner must <br />
         		<a id="pl.20.32"></a><var>20.32</var>notify the commissioner of revenue and the commissioner of employment and economic <br />
         		<a id="pl.20.33"></a><var>20.33</var>development. Upon receipt of notification from the commissioner ~~that an individual who~~ <br />
         		<a id="pl.21.1"></a><var>21.1</var>~~holds a certificate has failed to maintain all the conditions required by subdivision 6~~ <br />
         		<a id="pl.21.2"></a><var>21.2</var>~~or is not performing services for a person under the independent contractor exemption~~ <br />
         		<a id="pl.21.3"></a><var>21.3</var>~~certificate~~, the commissioner of revenue must review the information returns required <br />
         		<a id="pl.21.4"></a><var>21.4</var>under section 6041A of the Internal Revenue Code. The commissioner of revenue shall <br />
         		<a id="pl.21.5"></a><var>21.5</var>also review the submitted certification that is applicable to returns audited or investigated <br />
         		<a id="pl.21.6"></a><var>21.6</var>under section 
         <statute_ref>289A.35</statute_ref>.<br />
         		<br />
         		<a id="bill.2.10.0"></a><a id="pl.21.7"></a><var>21.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 181.723, subdivision 16, is amended to read:<br />
         		<a id="pl.21.8"></a><var>21.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 16. <b>Data classified.</b> Data in applications ~~for an independent contractor~~ <br />
         		<a id="pl.21.9"></a><var>21.9</var>~~exemption certificate~~ and any required documentation submitted to the commissioner <br />
         		<a id="pl.21.10"></a><var>21.10</var>under this section are private data on individuals or nonpublic data as defined in section <br />
         		
         <statute_ref><a id="pl.21.11"></a><var>21.11</var>13.02
         </statute_ref>. Data in ~~exemption~~ registration certificates issued by the commissioner are public <br />
         		<a id="pl.21.12"></a><var>21.12</var>data; except that registration information published on the department's Web site may be <br />
         		<a id="pl.21.13"></a><var>21.13</var>accessed for registration verification purposes only. Data that document a revocation <br />
         		<a id="pl.21.14"></a><var>21.14</var>or cancellation of ~~an exemption~~ a certificate are public data. Upon request of the <br />
         		<a id="pl.21.15"></a><var>21.15</var>Department of Revenue or the Department of Employment and Economic Development, <br />
         		<a id="pl.21.16"></a><var>21.16</var>the commissioner may release to the requesting department data classified as private or <br />
         		<a id="pl.21.17"></a><var>21.17</var>nonpublic under this subdivision or investigative data that are not public under section <br />
         		
         <statute_ref><a id="pl.21.18"></a><var>21.18</var>13.39
         </statute_ref> that relate to the issuance or denial of applications or revocations of certificates.<br />
         		<br />
         		<a id="bill.2.11.0"></a><a id="pl.21.19"></a><var>21.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 289A.31, subdivision 5, is amended to read:<br />
         		<a id="pl.21.20"></a><var>21.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Withholding tax, withholding from payments to out-of-state </b><br />
         		<a id="pl.21.21"></a><var>21.21</var><b>contractors, and withholding by partnerships and small business corporations.</b> (a) <br />
         		<a id="pl.21.22"></a><var>21.22</var>Except as provided in paragraph (b), an employer or person withholding tax under section <br />
         		
         <statute_ref><a id="pl.21.23"></a><var>21.23</var>290.92
         </statute_ref> or 
         <statute_ref>290.923, subdivision 2</statute_ref>, who fails to pay to or deposit with the commissioner a <br />
         		<a id="pl.21.24"></a><var>21.24</var>sum or sums required by those sections to be deducted, withheld, and paid, is personally <br />
         		<a id="pl.21.25"></a><var>21.25</var>and individually liable to the state for the sum or sums, and added penalties and interest, <br />
         		<a id="pl.21.26"></a><var>21.26</var>and is not liable to another person for that payment or payments. The sum or sums <br />
         		<a id="pl.21.27"></a><var>21.27</var>deducted and withheld under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision <br />
            		<a id="pl.21.28"></a><var>21.28</var>2
         </statute_ref>, must be held as a special fund in trust for the state of Minnesota.<br />
         		<a id="pl.21.29"></a><var>21.29</var>(b) If the employer or person withholding tax under section 
         <statute_ref>290.92</statute_ref> or 
         <statute_ref>290.923, <br />
            		<a id="pl.21.30"></a><var>21.30</var>subdivision 2
         </statute_ref>, fails to deduct and withhold the tax in violation of those sections, and later <br />
         		<a id="pl.21.31"></a><var>21.31</var>the taxes against which the tax may be credited are paid, the tax required to be deducted <br />
         		<a id="pl.21.32"></a><var>21.32</var>and withheld will not be collected from the employer. This does not, however, relieve the <br />
         		<a id="pl.21.33"></a><var>21.33</var>employer from liability for any penalties and interest otherwise applicable for failure to <br />
         		<a id="pl.22.1"></a><var>22.1</var>deduct and withhold. This paragraph does not apply to an employer subject to paragraph <br />
         		<a id="pl.22.2"></a><var>22.2</var>(g)~~, or to a contractor required to withhold under section~~ 
         <statute_ref>~~290.92, subdivision 31~~</statute_ref>.<br />
         		<a id="pl.22.3"></a><var>22.3</var>(c) Liability for payment of withholding taxes includes a responsible person or entity <br />
         		<a id="pl.22.4"></a><var>22.4</var>described in the personal liability provisions of section 
         <statute_ref>270C.56</statute_ref>.<br />
         		<a id="pl.22.5"></a><var>22.5</var>(d) Liability for payment of withholding taxes includes a third-party lender or surety <br />
         		<a id="pl.22.6"></a><var>22.6</var>described in section 
         <statute_ref>270C.59</statute_ref>.<br />
         		<a id="pl.22.7"></a><var>22.7</var>(e) A partnership or S corporation required to withhold and remit tax under section <br />
         		
         <statute_ref><a id="pl.22.8"></a><var>22.8</var>290.92, subdivisions 4b and 4c
         </statute_ref>, is liable for payment of the tax to the commissioner, and a <br />
         		<a id="pl.22.9"></a><var>22.9</var>person having control of or responsibility for the withholding of the tax or the filing of <br />
         		<a id="pl.22.10"></a><var>22.10</var>returns due in connection with the tax is personally liable for the tax due.<br />
         		<a id="pl.22.11"></a><var>22.11</var>(f) A payor of sums required to be withheld under section 
         <statute_ref>290.9705, subdivision <br />
            		<a id="pl.22.12"></a><var>22.12</var>1
         </statute_ref>, is liable to the state for the amount required to be deducted, and is not liable to an <br />
         		<a id="pl.22.13"></a><var>22.13</var>out-of-state contractor for the amount of the payment.<br />
         		<a id="pl.22.14"></a><var>22.14</var>(g) If an employer fails to withhold tax from the wages of an employee when <br />
         		<a id="pl.22.15"></a><var>22.15</var>required to do so under section 
         <statute_ref>290.92, subdivision 2a</statute_ref>, by reason of treating such <br />
         		<a id="pl.22.16"></a><var>22.16</var>employee as not being an employee, then the liability for tax is equal to three percent of <br />
         		<a id="pl.22.17"></a><var>22.17</var>the wages paid to the employee. The liability for tax of an employee is not affected by <br />
         		<a id="pl.22.18"></a><var>22.18</var>the assessment or collection of tax under this paragraph. The employer is not entitled to <br />
         		<a id="pl.22.19"></a><var>22.19</var>recover from the employee any tax determined under this paragraph.<br />
         		<a id="pl.22.20"></a><var>22.20</var><b>EFFECTIVE DATE.</b>This section is effective for payments made after June 30, <br />
         		<a id="pl.22.21"></a><var>22.21</var>2012.<br />
         		<br />
         		<a id="bill.2.12.0"></a><a id="pl.22.22"></a><var>22.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 326B.081, subdivision 3, is amended to read:<br />
         		<a id="pl.22.23"></a><var>22.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Applicable law.</b> "Applicable law" means the provisions of sections <br />
         		<a id="pl.22.24"></a><var>22.24</var>181.723, 
         <statute_ref>327.31</statute_ref> to 
         <statute_ref>327.36</statute_ref>, and this chapter, and all rules, orders, stipulation agreements, <br />
         		<a id="pl.22.25"></a><var>22.25</var>settlements, compliance agreements, licenses, registrations, certificates, and permits <br />
         		<a id="pl.22.26"></a><var>22.26</var>adopted, issued, or enforced by the department under sections 
         <statute_ref>181.723, 327.31</statute_ref> to 
         <statute_ref>327.36</statute_ref>, <br />
         		<a id="pl.22.27"></a><var>22.27</var>or this chapter.<br />
         		<br />
         		<a id="bill.2.13.0"></a><a id="pl.22.28"></a><var>22.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. <b> REPEALER.</b><br />
         		<a id="pl.22.29"></a><var>22.29</var>(a) Minnesota Statutes 2010, section 181.723, subdivision 17, is repealed effective <br />
         		<a id="pl.22.30"></a><var>22.30</var>May 15, 2011.<br />
         		<a id="pl.22.31"></a><var>22.31</var>(b) Minnesota Statutes 2010, section 181.723, subdivisions 6, 8, 9, 10, 11, 12, and <br />
         		<a id="pl.22.32"></a><var>22.32</var>14, and Minnesota Rules, parts 5202.0100; 5202.0110; 5202.0120; 5202.0130; 5202.0140; <br />
         		<a id="pl.22.33"></a><var>22.33</var>5202.0150; and 5202.0160, are repealed July 1, 2012, except they shall remain in effect <br />
         		<a id="pl.22.34"></a><var>22.34</var>for the regulation of an individual holding an independent contractor exemption certificate <br />
         		<a id="pl.23.1"></a><var>23.1</var>issued before July 1, 2012, under Minnesota Statutes 2010, section 181.723, subdivision <br />
         		<a id="pl.23.2"></a><var>23.2</var>5, until the exemption certificate expires, is revoked, or is canceled.<br />
         		<a id="pl.23.3"></a><var>23.3</var>(c) Minnesota Statutes 2010, section 290.92, subdivision 31, is repealed effective <br />
         		<a id="pl.23.4"></a><var>23.4</var>for payments made after June 30, 2012.<br />
         		<br />
         		<a id="bill.2.14.0"></a><a id="pl.23.5"></a><var>23.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.23.6"></a><var>23.6</var>Sections 1 to 10 and 12 are effective July 1, 2012, except that those sections do not <br />
         		<a id="pl.23.7"></a><var>23.7</var>apply to the regulation of an individual who holds an independent contractor exemption <br />
         		<a id="pl.23.8"></a><var>23.8</var>certificate issued before July 1, 2012, under Minnesota Statutes 2010, section 181.723, <br />
         		<a id="pl.23.9"></a><var>23.9</var>subdivision 5, until the exemption certificate expires, or is revoked or canceled."<br />
         		<a id="pl.23.10"></a><var>23.10</var>Delete the title and insert:<br />
         		
         <div class="xtend_ce"><a id="pl.23.11"></a><var>23.11</var>"A bill for an act<br />
            		
         </div><a id="pl.23.12"></a><var>23.12</var>relating to labor and industry; clarifying employee classification of independent <br />
         		<a id="pl.23.13"></a><var>23.13</var>contractors; providing a pilot project for contractor registration; providing for <br />
         		<a id="pl.23.14"></a><var>23.14</var>penalties; making labor and industry technical changes;amending Minnesota <br />
         		<a id="pl.23.15"></a><var>23.15</var>Statutes 2010, sections 178.01; 178.03, subdivisions 3, 4; 178.05, subdivisions <br />
         		<a id="pl.23.16"></a><var>23.16</var>1, 2; 178.06; 178.07; 178.08; 178.09, subdivisions 1, 2; 181.723, subdivisions <br />
         		<a id="pl.23.17"></a><var>23.17</var>1, 4, 7, 10, 15, 16, by adding subdivisions; 289A.31, subdivision 5; 326B.081, <br />
         		<a id="pl.23.18"></a><var>23.18</var>subdivision 3; 326B.092, subdivisions 2, 7; 326B.103, subdivision 3; Minnesota <br />
         		<a id="pl.23.19"></a><var>23.19</var>Statutes 2011 Supplement, sections 181.723, subdivision 5; 326B.0981, <br />
         		<a id="pl.23.20"></a><var>23.20</var>subdivision 4; 326B.46, subdivision 1a; 326B.49, subdivision 1; repealing <br />
         		<a id="pl.23.21"></a><var>23.21</var>Minnesota Statutes 2010, sections 181.723, subdivisions 6, 8, 9, 10, 11, 12, <br />
         		<a id="pl.23.22"></a><var>23.22</var>14, 17; 290.92, subdivision 31; Minnesota Rules, parts 1300.0230, subpart <br />
         		<a id="pl.23.23"></a><var>23.23</var>4; 1301.1201; 1302.0600; 3801.3640; 3801.3650; 3801.3660; 3801.3670; <br />
         		<a id="pl.23.24"></a><var>23.24</var>3801.3680; 3801.3690; 3801.3700; 3801.3710; 3801.3720; 3801.3730; <br />
         		<a id="pl.23.25"></a><var>23.25</var>3801.3740; 3801.3760; 3801.3790; 3801.3800; 5202.0100; 5202.0110; <br />
         		<a id="pl.23.26"></a><var>23.26</var>5202.0120; 5202.0130; 5202.0140; 5202.0150; 5202.0160."<br />
         		
         <table>
            <col width="50px"></col>
            <col width="252px"></col>
            <col width="42px"></col>
            <col width="252px"></col>
            <tr>
               <td><a id="pl.24.1"></a><var>24.1</var><br />
                  		
               </td>
               <td colspan="3">We request the adoption of this report and repassage of the bill.<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.24.2"></a><var>24.2</var><br />
                  		
               </td>
               <td>Senate Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.24.3"></a><var>24.3</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.24.4"></a><var>24.4</var><br />
                  		
               </td>
               <td>John C. Pederson<br />
                  		
               </td>
               <td></td>
               <td>Jeremy R. Miller<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.24.5"></a><var>24.5</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.24.6"></a><var>24.6</var><br />
                  		
               </td>
               <td>David J. Tomassoni<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.24.7"></a><var>24.7</var><br />
                  		
               </td>
               <td>House Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.24.8"></a><var>24.8</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.24.9"></a><var>24.9</var><br />
                  		
               </td>
               <td>Tim Sanders<br />
                  		
               </td>
               <td></td>
               <td>Kurt Daudt<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.24.10"></a><var>24.10</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.24.11"></a><var>24.11</var><br />
                  		
               </td>
               <td>Michael V. Nelson<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
         </table>
      </div>