SF 1717

Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 04/30/2012 04:31pm

1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1717

1.2A bill for an act

1.3relating to labor and industry; making changes to the State Building Code;
1.4amending Minnesota Statutes 2010, sections 178.01; 178.03, subdivisions 3, 4;
1.5178.05, subdivisions 1, 2; 178.06; 178.07; 178.08; 178.09, subdivisions 1, 2;
1.6299F.011, by adding a subdivision; 326B.092, subdivisions 2, 7; 326B.103,
1.7subdivision 3; 326B.809; Minnesota Statutes 2011 Supplement, sections
1.8326B.0981, subdivision 4; 326B.46, subdivision 1a; 326B.49, subdivision 1;
1.9repealing Minnesota Rules, parts 1300.0230, subpart 4; 1301.1201; 1302.0600;
1.103801.3640; 3801.3650; 3801.3660; 3801.3670; 3801.3680; 3801.3690;
1.113801.3700; 3801.3710; 3801.3720; 3801.3730; 3801.3740; 3801.3760;
1.123801.3790; 3801.3800.
1.13April 30, 2012
1.14The Honorable Michelle L. Fischbach
1.15President of the Senate
1.16The Honorable Kurt Zellers
1.17Speaker of the House of Representatives
1.18We, the undersigned conferees for S.F. No. 1717 report that we have agreed upon
1.19the items in dispute and recommend as follows:
1.20That the House recede from its amendment and that S.F. No. 1717 be further
1.21amended as follows:
1.22Delete everything after the enacting clause and insert:

1.23"ARTICLE 1

1.24LABOR AND INDUSTRY HOUSEKEEPING

1.25    Section 1. Minnesota Statutes 2010, section 178.01, is amended to read:
1.26178.01 PURPOSES.
1.27    The purposes of this chapter are: to open to young all people regardless of race,
1.28sex, creed, color or national origin, the opportunity to obtain training and on-the-job
1.29learning that will equip them for profitable employment and citizenship; to establish as
1.30a means to this end, a program of voluntary apprenticeship under approved apprentice
1.31apprenticeship agreements providing facilities for their training and guidance in the arts,
2.1skills, and crafts of industry and trade or occupation, with concurrent, supplementary
2.2instruction in related subjects; to promote apprenticeship opportunities under conditions
2.3providing adequate training and on-the-job learning and reasonable earnings; to relate the
2.4supply of skilled workers to employment demands; to establish standards for apprentice
2.5training; to establish an Apprenticeship Board and apprenticeship committees to assist in
2.6effectuating the purposes of this chapter; to provide for a Division of Labor Standards
2.7and Apprenticeship within the Department of Labor and Industry; to provide for reports
2.8to the legislature regarding the status of apprentice training in the state; to establish a
2.9procedure for the determination of apprentice apprenticeship agreement controversies;
2.10and to accomplish related ends.

2.11    Sec. 2. Minnesota Statutes 2010, section 178.03, subdivision 3, is amended to read:
2.12    Subd. 3. Duties and functions. The director, under the supervision of the
2.13commissioner, and with the advice and consultation of the Apprenticeship Board, is
2.14authorized: to administer the provisions of this chapter; to promote apprenticeship and
2.15other forms of on-the-job learning; to establish, in cooperation and consultation with the
2.16Apprenticeship Board and with the apprenticeship committees, conditions, training, and
2.17learning standards for the approval of apprenticeship programs and agreements, which
2.18conditions and standards shall in no case be lower than those (1) prescribed by this chapter,
2.19and (2) established under Code of Federal Regulations, title 29, part 29; to promote equal
2.20employment opportunity in apprenticeship and other on-the-job learning and to establish
2.21a Minnesota plan for equal employment opportunity in apprenticeship which shall be
2.22consistent with standards established under Code of Federal Regulations, title 29, part 30,
2.23as amended; to issue certificates of registration to sponsors of approved apprenticeship
2.24programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion
2.25that approval is for the best interest of the apprentice, any apprenticeship agreement which
2.26meets the standards established hereunder; to terminate any apprenticeship agreement in
2.27accordance with the provisions of such agreement; to keep a record of apprenticeship
2.28agreements and their disposition; to issue certificates of completion of apprenticeship;
2.29and to perform such other duties as the commissioner deems necessary to carry out the
2.30intent of this chapter; provided, that the administration and supervision of supplementary
2.31instruction in related subjects for apprentices; coordination of instruction on a concurrent
2.32basis with job experiences, and the selection and training of teachers and coordinators
2.33for such instruction shall be the function of state and local boards responsible for
2.34vocational education. The director shall have the authority to make wage determinations
2.35applicable to the graduated schedule of wages and journeyman journeyworker wage rate
3.1for apprenticeship agreements, giving consideration to the existing wage rates prevailing
3.2throughout the state, except that no wage determination by the director shall alter an
3.3existing wage provision for apprentices or journeymen journeyworkers that is contained in
3.4a bargaining agreement in effect between an employer and an organization of employees,
3.5nor shall the director make any determination for the beginning rate for an apprentice that
3.6is below the wage minimum established by federal or state law.

3.7    Sec. 3. Minnesota Statutes 2010, section 178.03, subdivision 4, is amended to read:
3.8    Subd. 4. Reciprocity approval. The director, if requested by a sponsoring entity,
3.9shall grant reciprocity approval to apprenticeship programs of employers and unions
3.10who jointly form a sponsoring entity on a multistate basis in other than the building
3.11construction industry if such programs are in conformity with this chapter and have been
3.12registered in compliance with Code of Federal Regulations, title 29, part 29, by a state
3.13apprenticeship council recognized by or registered with the Bureau of Apprenticeship
3.14and Training, United States Department of Labor, Office of Apprenticeship, when such
3.15approval is necessary for federal purposes under Code of Federal Regulations, title 29,
3.16section 29.13(a) or 29.13(b)(7).

3.17    Sec. 4. Minnesota Statutes 2010, section 178.05, subdivision 1, is amended to read:
3.18    Subdivision 1. Establishment of committees. Apprenticeship committees may
3.19be established by the director to supervise the operation of apprenticeship programs.
3.20Establishment of a committee may be considered justified if either of the following
3.21conditions are met:
3.22(a) When the employers and employees in a trade or occupation or trades or
3.23occupations are parties to a collective bargaining agreement requiring joint participation
3.24in program operation; or
3.25(b) When five or more apprentices are enrolled under a program.

3.26    Sec. 5. Minnesota Statutes 2010, section 178.05, subdivision 2, is amended to read:
3.27    Subd. 2. Members. (a) The total number of members on a committee may range
3.28from four to twelve.
3.29(b) In joint participation there shall be equal representation of employers and
3.30employees.
3.31(c) Members shall be selected by the group or groups they represent subject to
3.32approval by the director.
4.1(d) A committee may have as one of its employee representatives, an active
4.2apprentice of record, provided that the apprentice has completed a minimum of 6,000
4.3hours of an apprenticeship term or has entered the fourth year of the term.

4.4    Sec. 6. Minnesota Statutes 2010, section 178.06, is amended to read:
4.5178.06 APPRENTICE.
4.6The term "apprentice," as used herein, means a person at least 16 years of age who
4.7has entered into a written agreement, hereinafter called an apprentice apprenticeship
4.8agreement, with a committee, an employer, an association of employers, or an organization
4.9of employees, which apprentice agreement provides for learning consistent with this
4.10chapter and Code of Federal Regulations, title 29, section 29.5(b)(1) and (b)(2):
4.11(1) a time-based approach involving not less than 2,000 hours or one year
4.12of reasonably continuous employment for such person and for participation in an
4.13approved program of on-the-job learning through employment and through concurrent,
4.14supplementary education in related subjects;
4.15(2) a competency-based approach involving successful demonstration of acquired
4.16skills and knowledge by an apprentice plus on-the-job learning; or
4.17(3) a hybrid approach involving the completion of a specified minimum number of
4.18hours plus the successful demonstration of competency.
4.19    Whenever a minimum age exceeding 16 years is prescribed by federal or state law
4.20to apply to workers in certain hazardous occupations, the minimum age so prescribed
4.21shall be applicable to apprentices.

4.22    Sec. 7. Minnesota Statutes 2010, section 178.07, is amended to read:
4.23178.07 APPRENTICE APPRENTICESHIP AGREEMENTS.
4.24Every apprentice apprenticeship agreement entered into under this chapter shall
4.25contain:
4.26(1) the names of the contracting parties;
4.27(2) the date of birth, and information as to the race and sex of the apprentice;
4.28(3) a statement of the trade, craft, occupation, or business which the apprentice is to
4.29be taught, and the time at which the apprenticeship will begin and end;
4.30(4) a statement showing the number of hours to be spent by the apprentice in work
4.31and the number of hours to be spent in concurrent, supplementary instruction in related
4.32subjects, which instruction shall be not less than 144 hours during each year of the
4.33apprenticeship term. The maximum number of hours of work per week not including time
4.34spent in related and supplemental instruction for any apprentice shall not exceed either
5.1the number prescribed by law or the customary regular number of hours per week for the
5.2employees of the company by which the apprentice is employed. An apprentice may
5.3be allowed to work overtime provided that the overtime work does not conflict with
5.4supplementary instruction course attendance. All time in excess of the number of hours of
5.5work per week as specified in the apprenticeship agreement shall be considered overtime.
5.6For overtime, the apprentice's rate of pay shall be increased by the same percentage as the
5.7journeyman's journeyworker's rate of pay for overtime is increased in the same industry or
5.8establishment;
5.9(5) a statement setting forth a schedule of the processes in the trade, occupation,
5.10or industry divisions in which the apprentice is to be taught and the approximate time to
5.11be spent at each process;
5.12(6) a statement of the graduated scale of wages to be paid the apprentice and whether
5.13the required school time shall be compensated;
5.14(7) a statement providing for a period of probation of not more than 500 hours of
5.15employment and instruction extending over not more than four months, during which time
5.16the apprentice apprenticeship agreement shall be terminated by the director upon written
5.17request of either party, and providing that after such probationary period the apprentice
5.18apprenticeship agreement may be terminated by the director by mutual agreement of all
5.19parties thereto, or terminated by the director for good and sufficient reason;
5.20(8) a provision that controversies or differences concerning the terms of the
5.21apprentice apprenticeship agreement which cannot be resolved by the parties thereto, or
5.22which are not covered by a collective bargaining agreement, may be submitted to the
5.23director for determination as provided for in section 178.09;
5.24(9) a provision that an employer who is unable to fulfill an obligation under the
5.25apprentice apprenticeship agreement may, with the approval of the director, transfer such
5.26contract to any other employer, provided that the apprentice consents and that such other
5.27employer agrees to assume the obligations of the apprentice apprenticeship agreement; and
5.28(10) such additional terms and conditions as may be prescribed or approved by the
5.29director not inconsistent with the provisions of this chapter.

5.30    Sec. 8. Minnesota Statutes 2010, section 178.08, is amended to read:
5.31178.08 DIRECTOR TO APPROVE APPRENTICE APPRENTICESHIP
5.32AGREEMENTS.
5.33Every apprentice apprenticeship agreement is subject to approval by the director
5.34and shall be signed by the committee, the employer, an association of employers, or
5.35an organization of employees, and by the apprentice, and if the apprentice is a minor,
6.1by a parent or legal guardian. When a minor enters into an apprentice apprenticeship
6.2agreement under this chapter for a period of learning extending into majority the
6.3apprentice apprenticeship agreement shall likewise be binding for such a period as may be
6.4covered during the apprentice's majority.

6.5    Sec. 9. Minnesota Statutes 2010, section 178.09, subdivision 1, is amended to read:
6.6    Subdivision 1. Complaint. Upon the complaint of any interested person or upon
6.7the director's own initiative the director may investigate to determine if there has been a
6.8violation of the terms of an apprentice apprenticeship agreement made under this chapter.
6.9The director may conduct such proceedings as are necessary for that investigation and
6.10determination. All such proceedings shall be on a fair and impartial basis and shall be
6.11conducted according to rules promulgated under section 178.041.

6.12    Sec. 10. Minnesota Statutes 2010, section 178.09, subdivision 2, is amended to read:
6.13    Subd. 2. Determination; appeal. The determination of the director shall be filed
6.14with the commissioner and written notice shall be served on all parties affected by it.
6.15Any person aggrieved by any determination or action of the director may appeal to the
6.16commissioner. If no appeal is filed with the commissioner within ten days of the date
6.17of service, the director's determination shall become the order of the commissioner. If
6.18an appeal is filed, the commissioner shall appoint and convene a hearing board to be
6.19composed of three members of the council Apprenticeship Board appointed under
6.20section 178.02, one member being a representative of an employer organization, one
6.21representative being a member of an employee organization, and one member representing
6.22the general public. The board shall hold a hearing on the appeal after due notice to the
6.23interested parties and shall submit to the commissioner findings of fact and a recommended
6.24decision accompanied by a memorandum of the reasons for it. Within 30 days after
6.25submission, the commissioner may adopt the recommended decision of the board, or
6.26disregard the recommended decision of the board and prepare a decision based on the
6.27findings of fact and accompanied by a memorandum of reasons for that decision. Written
6.28notice of the commissioner's determination and order shall be served on all parties affected
6.29by it. Any person aggrieved or affected by any determination or order of the commissioner
6.30may appeal from it to the district court having jurisdiction at any time within 30 days after
6.31the date of the order by service of a written notice of appeal on the commissioner. Upon
6.32service of the notice of appeal, the commissioner shall file with the court administrator
6.33of the district court to which the appeal is taken a certified copy of the order appealed
6.34from, together with findings of fact on which it is based. The person serving a notice of
7.1appeal shall, within five days after its service, file it, with proof of service, with the court
7.2administrator of the court to which the appeal is taken. The district court shall then have
7.3jurisdiction over the appeal and it shall be entered in the records of the district court and
7.4tried de novo according to the applicable rules. Any person aggrieved or affected by any
7.5determination, order, or decision of the district court may appeal as in other civil cases.

7.6    Sec. 11. Minnesota Statutes 2010, section 299F.011, is amended by adding a
7.7subdivision to read:
7.8    Subd. 4d. Single-family dwelling; fire sprinklers. (a) The State Building Code,
7.9the State Fire Code, or a political subdivision of the state by code, by ordinance, as a
7.10condition of receiving public funding, or in any other way, must not require the installation
7.11of fire sprinklers, any fire sprinkler system components, or automatic fire-extinguishing
7.12equipment or devices in any new or existing single-family detached dwelling unit.
7.13(b) This subdivision does not affect or limit a requirement for smoke or fire
7.14detectors, alarms, or their components.
7.15EFFECTIVE DATE.This section is effective the day following final enactment.

7.16    Sec. 12. Minnesota Statutes 2010, section 326B.092, subdivision 2, is amended to read:
7.17    Subd. 2. Licenses not requiring examination administered by commissioner. If
7.18the applicant for a license is not required to pass an examination in order to obtain the
7.19license, or is required to pass an examination that is not administered by the commissioner,
7.20then the license fee must accompany the application for the license. If the application is
7.21for a license issued under sections 326B.802 to 326B.885 and is not an application for
7.22license renewal, then the contractor recovery fund fee required under section 326B.89,
7.23subdivision 3, is due after the department has determined that the applicant meets the
7.24qualifications for licensing and before the license is issued.

7.25    Sec. 13. Minnesota Statutes 2010, section 326B.092, subdivision 7, is amended to read:
7.26    Subd. 7. License fees and license renewal fees. (a) The license fee for each license
7.27except a renewed license shall be the base license fee plus any applicable board fee, as
7.28set forth in this subdivision. The license renewal fee for each renewed license is the
7.29base license fee plus any applicable board fee, continuing education fee, and contractor
7.30recovery fund fee and additional assessment, as set forth in this subdivision.
7.31(b) For purposes of this section, "license duration" means the number of years for
7.32which the license is issued except that:
8.1(1) if the initial license is not issued for a whole number of years, the license duration
8.2shall be rounded up to the next whole number; and
8.3(2) if the department receives an application for license renewal after the renewal
8.4deadline, license duration means the number of years for which the renewed license would
8.5have been issued if the renewal application had been submitted on time and all other
8.6requirements for renewal had been met.
8.7(c) The base license fee shall depend on whether the license is classified as an entry
8.8level, master, journeyman, or business license, and on the license duration. The base
8.9license fee shall be:

8.10	License Classification	License Duration
8.11		1 Year	2 Years	3 Years
8.12	Entry level	$10	$20	$30
8.13	Journeyman	$20	$40	$60
8.14	Master	$40	$80	$120
8.15	Business	$90	$180	$270

8.16(d) If there is a continuing education requirement for renewal of the license, then
8.17a continuing education fee must be included in the renewal license fee. The continuing
8.18education fee for all license classifications shall be: $10 if the renewal license duration is
8.19one year; $20 if the renewal license duration is two years; and $30 if the renewal license
8.20duration is three years.
8.21(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to
8.22326B.93 , then a board fee must be included in the license fee and the renewal license fee.
8.23The board fee for all license classifications shall be: $4 if the license duration is one year;
8.24$8 if the license duration is two years; and $12 if the license duration is three years.
8.25(f) If the application is for the renewal of a license issued under sections 326B.802
8.26to 326B.885, then the contractor recovery fund fee required under section 326B.89,
8.27subdivision 3, and any additional assessment required under section 326B.89, subdivision
8.2816, must be included in the license renewal fee.

8.29    Sec. 14. Minnesota Statutes 2011 Supplement, section 326B.0981, subdivision 4,
8.30is amended to read:
8.31    Subd. 4. Internet continuing education. (a) The design and delivery of an Internet
8.32continuing education course must be approved by the International Distance Education
8.33Certification Center (IDECC) or the International Association for Continuing Education
8.34and Training (IACET) before the course is submitted for the commissioner's approval.
8.35The IDECC approval must accompany the course submitted.
8.36(b) An Internet continuing education course must:
9.1(1) specify the minimum computer system requirements;
9.2(2) provide encryption that ensures that all personal information, including the
9.3student's name, address, and credit card number, cannot be read as it passes across the
9.4Internet;
9.5(3) include technology to guarantee seat time;
9.6(4) include a high level of interactivity;
9.7(5) include graphics that reinforce the content;
9.8(6) include the ability for the student to contact an instructor or course sponsor
9.9within a reasonable amount of time;
9.10(7) include the ability for the student to get technical support within a reasonable
9.11amount of time;
9.12(8) include a statement that the student's information will not be sold or distributed
9.13to any third party without prior written consent of the student. Taking the course does not
9.14constitute consent;
9.15(9) be available 24 hours a day, seven days a week, excluding minimal downtime
9.16for updating and administration, except that this provision does not apply to live courses
9.17taught by an actual instructor and delivered over the Internet;
9.18(10) provide viewing access to the online course at all times to the commissioner,
9.19excluding minimal downtime for updating and administration;
9.20(11) include a process to authenticate the student's identity;
9.21(12) inform the student and the commissioner how long after its purchase a course
9.22will be accessible;
9.23(13) inform the student that license education credit will not be awarded for taking
9.24the course after it loses its status as an approved course;
9.25(14) provide clear instructions on how to navigate through the course;
9.26(15) provide automatic bookmarking at any point in the course;
9.27(16) provide questions after each unit or chapter that must be answered before the
9.28student can proceed to the next unit or chapter;
9.29(17) include a reinforcement response when a quiz question is answered correctly;
9.30(18) include a response when a quiz question is answered incorrectly;
9.31(19) include a final examination in which the student must correctly answer 70
9.32percent of the questions;
9.33(20) allow the student to go back and review any unit at any time, except during the
9.34final examination;
10.1(21) provide a course evaluation at the end of the course. At a minimum, the
10.2evaluation must ask the student to report any difficulties caused by the online education
10.3delivery method;
10.4(22) provide a completion certificate when the course and exam have been completed
10.5and the provider has verified the completion. Electronic certificates are sufficient and shall
10.6include the name of the provider, date and location of the course, educational program
10.7identification that was provided by the department, hours of instruction or continuing
10.8education hours, and licensee's or attendee's name and license, certification, or registration
10.9number or the last four digits of the licensee's or attendee's Social Security number; and
10.10(23) allow the commissioner the ability to electronically review the class to
10.11determine if credit can be approved.
10.12(c) The final examination must be either an encrypted online examination or a
10.13paper examination that is monitored by a proctor who certifies that the student took the
10.14examination.

10.15    Sec. 15. Minnesota Statutes 2010, section 326B.103, subdivision 3, is amended to read:
10.16    Subd. 3. Agricultural building. "Agricultural building" means a structure that is:
10.17(1) on agricultural land as defined in determined by the governing assessor for the
10.18municipality or county under section 273.13, subdivision 23,;
10.19(2) designed, constructed, and used to house farm implements, livestock, or
10.20agricultural produce or products under section 273.13, subdivision 23; and
10.21(3) used by the owner, lessee, and sublessee of the building and members of their
10.22immediate families, their employees, and persons engaged in the pickup or delivery of
10.23agricultural produce or products.

10.24    Sec. 16. Minnesota Statutes 2011 Supplement, section 326B.46, subdivision 1a,
10.25is amended to read:
10.26    Subd. 1a. Exemptions from licensing. (a) An individual without a contractor
10.27license may do plumbing work on the individual's residence in accordance with
10.28subdivision 1, paragraph (a).
10.29(b) An individual who is an employee working on the maintenance and repair of
10.30plumbing equipment, apparatus, or facilities owned or leased by the individual's employer
10.31and which is within the limits of property owned or leased, and operated or maintained by
10.32the individual's employer, shall not be required to maintain a contractor license as long
10.33as the employer has on file with the commissioner a current certificate of responsible
10.34individual. The responsible individual must be a master plumber or, in an area of the
11.1state that is not a city or town with a population of more than 5,000 according to the
11.2last federal census, a restricted master plumber. The certificate must be signed by the
11.3responsible individual and must state that the person signing the certificate is responsible
11.4for ensuring that the maintenance and repair work performed by the employer's employees
11.5complies with sections 326B.41 to 326B.49, all rules adopted under those sections and
11.6sections 326B.50 to 326B.59, and all orders issued under section 326B.082. The employer
11.7must pay a filing fee to file a certificate of responsible individual with the commissioner.
11.8The certificate shall expire two years from the date of filing. In order to maintain a
11.9current certificate of responsible individual, the employer must resubmit a certificate of
11.10responsible individual, with a filing fee, no later than two years from the date of the
11.11previous submittal. The filing of the certificate of responsible individual does not exempt
11.12any employee of the employer from the requirements of this chapter regarding individual
11.13licensing as a plumber or registration as a plumber's apprentice an unlicensed individual.
11.14(c) If a contractor employs a licensed plumber, the licensed plumber does not need a
11.15separate contractor license to perform plumbing work on behalf of the employer within
11.16the scope of the licensed plumber's license.
11.17(d) A person may perform and offer to perform building sewer or water service
11.18installation without a contractor's license if the person is in compliance with the bond and
11.19insurance requirements of subdivision 2.

11.20    Sec. 17. Minnesota Statutes 2011 Supplement, section 326B.49, subdivision 1, is
11.21amended to read:
11.22    Subdivision 1. Application, examination, and license fees. (a) Applications for
11.23master and journeyman plumber's licenses shall be made to the commissioner, with
11.24all fees required by section 326B.092. Unless the applicant is entitled to a renewal,
11.25the applicant shall be licensed by the commissioner only after passing a satisfactory
11.26examination developed and administered by the commissioner, based upon rules adopted
11.27by the Plumbing Board, showing fitness.
11.28(b) All initial journeyman plumber's licenses shall be effective for more than one
11.29calendar year and shall expire on December 31 of the year after the year in which the
11.30application is made. All master plumber's licenses shall expire on December 31 of each
11.31even-numbered year after issuance or renewal. The commissioner shall in a manner
11.32determined by the commissioner, without the need for any rulemaking under chapter 14,
11.33phase in the renewal of master and journeyman plumber's licenses from one year to two
11.34years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be
11.35two-year licenses.
12.1(c) Applications for contractor licenses shall be made to the commissioner, with all
12.2fees required by section 326B.092. All contractor licenses shall expire on December 31 of
12.3each odd-numbered year after issuance or renewal.
12.4(d) For purposes of calculating license fees and renewal license fees required under
12.5section 326B.092:
12.6(1) the following licenses shall be considered business licenses: plumbing contractor
12.7and restricted plumbing contractor;
12.8(2) the following licenses shall be considered master licenses: master plumber and
12.9restricted master plumber;
12.10(3) the following licenses shall be considered journeyman licenses: journeyman
12.11plumber and restricted journeyman plumber; and
12.12(4) the registration of a plumber's apprentice an unlicensed individual under section
12.13326B.47, subdivision 3 , shall be considered an entry level license.
12.14(e) For each filing of a certificate of responsible individual by an employer, the
12.15fee is $100.
12.16(f) The commissioner shall charge each person giving bond under section 326B.46,
12.17subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a
12.18licensed contractor.

12.19    Sec. 18. Minnesota Statutes 2010, section 326B.809, is amended to read:
12.20326B.809 WRITTEN CONTRACT REQUIRED.
12.21    (a) All agreements including proposals, estimates, bids, quotations, contracts,
12.22purchase orders, and change orders between a licensee and a customer for the performance
12.23of a licensee's services must be in writing and must contain the following:
12.24    (1) a detailed summary of the services to be performed;
12.25    (2) a description of the specific materials to be used or a list of standard features
12.26to be included; and
12.27    (3) the total contract price or a description of the basis on which the price will
12.28be calculated.
12.29    (b) Before entering into an agreement, the licensee shall provide a prospective
12.30customer with written performance guidelines for the services to be performed.
12.31Performance guidelines also must be included or incorporated by reference in the
12.32agreement. All agreements shall be signed and dated by the licensee and customer.
12.33(c) Before entering into an agreement, the licensee shall offer a prospective customer
12.34the option to install fire sprinklers, any fire sprinkler system components, or automatic
12.35fire-extinguishing equipment or devices in any new single-family detached dwelling unit.
13.1The offer must be included or incorporated by reference in the agreement. Agreements
13.2must be signed and dated by the licensee and customer.
13.3    (c) (d) The licensee shall provide to the customer, at no charge, a signed and
13.4dated document at the time that the licensee and customer sign and date the document.
13.5Documents include agreements, performance guidelines, fire sprinkler opt-in forms, and
13.6mechanic's lien waivers.

13.7    Sec. 19. REPEALER.
13.8Minnesota Rules, parts 1300.0230, subpart 4; 1301.1201; 1302.0600; 3801.3640;
13.93801.3650; 3801.3660; 3801.3670; 3801.3680; 3801.3690; 3801.3700; 3801.3710;
13.103801.3720; 3801.3730; 3801.3740; 3801.3760; 3801.3790; and 3801.3800, are repealed.

13.11ARTICLE 2

13.12EMPLOYEE CLASSIFICATION OF INDEPENDENT CONTRACTORS

13.13    Section 1. Minnesota Statutes 2010, section 181.723, subdivision 1, is amended to read:
13.14    Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
13.15    (a) "Person" means any individual, limited liability corporation company, limited
13.16liability partnership, corporation, partnership, incorporated or unincorporated association,
13.17sole proprietorship, joint stock company, or any other legal or commercial entity.
13.18    (b) "Department" means the Department of Labor and Industry.
13.19    (c) "Commissioner" means the commissioner of labor and industry or a duly
13.20designated representative of the commissioner who is either an employee of the
13.21Department of Labor and Industry or person working under contract with the Department
13.22of Labor and Industry.
13.23    (d) "Individual" means a human being.
13.24    (e) "Day" means calendar day unless otherwise provided.
13.25    (f) "Knowingly" means knew or could have known with the exercise of reasonable
13.26diligence.
13.27    (g) "Document" or "documents" includes papers; books; records; memoranda; data;
13.28contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings;
13.29records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars
13.30maintained in any form or manner.
13.31(h) "Business entity" means a person other than an individual or a sole proprietor.

13.32    Sec. 2. Minnesota Statutes 2010, section 181.723, subdivision 4, is amended to read:
14.1    Subd. 4. Independent contractor. (a) An individual is an independent contractor
14.2and not an employee of the person for whom the individual is performing services in the
14.3course of the person's trade, business, profession, or occupation only if (1) the individual
14.4holds a current independent contractor exemption certificate issued by the commissioner;
14.5and (2) the individual is performing services for the person under the independent
14.6contractor exemption certificate as provided in subdivision 6. The requirements in clauses
14.7(1) and (2) must be met in order to qualify as an independent contractor and not as an
14.8employee of the person for whom the individual is performing services in the course of
14.9the person's trade, business, profession, or occupation. the individual is registered with the
14.10Department of Labor and Industry, if required under subdivision 4a, and the individual:
14.11(1) maintains a separate business with the worker's own office, equipment, materials,
14.12and other facilities;
14.13(2)(i) holds or has applied for a federal employer identification number or (ii) has
14.14filed business or self-employment income tax returns with the federal Internal Revenue
14.15Service if the individual has performed services in the previous year;
14.16(3) is operating under contract to perform the specific services for the person
14.17for specific amounts of money and under which the individual controls the means of
14.18performing the services;
14.19(4) is incurring the main expenses related to the services that the individual is
14.20performing for the person under the contract;
14.21(5) is responsible for the satisfactory completion of the services that the individual
14.22has contracted to perform for the person and is liable for a failure to complete the services;
14.23(6) receives compensation from the person for the services performed under the
14.24contract on a commission or per-job or competitive bid basis and not on any other basis;
14.25(7) may realize a profit or suffer a loss under the contract to perform services for
14.26the person;
14.27(8) has continuing or recurring business liabilities or obligations; and
14.28(9) the success or failure of the individual's business depends on the relationship of
14.29business receipts to expenditures.
14.30(b) If an individual is an owner or partial owner of a business entity, the individual is
14.31an employee of the person for whom the individual is performing services in the course
14.32of the person's trade, business, profession, or occupation, and is not an employee of the
14.33business entity in which the individual has an ownership interest, unless:
14.34(1) the business entity meets the nine factors in paragraph (a);
14.35(2) invoices are submitted in the name of the business entity;
14.36(3) the business entity is registered with the secretary of state, if required; and
15.1(4) the business entity is registered with the Department of Labor and Industry,
15.2if required under subdivision 4a.

15.3    Sec. 3. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision
15.4to read:
15.5    Subd. 4a. Registration pilot project. (a) The commissioner shall implement a pilot
15.6project, effective July 1, 2012, for the registration of persons who perform public or
15.7private sector commercial or residential building construction or improvement services
15.8as described in subdivision 2. The purpose of the pilot project is to evaluate whether the
15.9information obtained through registration assists the Department of Labor and Industry,
15.10the Department of Employment and Economic Development, and the Department of
15.11Revenue to enforce laws related to misclassification of employees. The commissioner
15.12shall issue a report to the legislature no later than January 1, 2014, on recommendations
15.13for amendments to the registration program, including reasonable registration fees to be
15.14used to aid in enforcing misclassification laws. The commissioner must not charge a fee
15.15for registration under the pilot project, but may take the enforcement action specified in
15.16subdivision 8a. The pilot project shall expire on June 30, 2014, unless extended by the
15.17legislature.
15.18(b) Except as provided in paragraph (c), any person who performs construction
15.19services in the state on or after September 15, 2012, must register with the commissioner
15.20as provided in subdivision 5 before performing construction services for another person.
15.21The requirements for registration under this subdivision are not a substitute for, and do
15.22not relieve a person from complying with, any other law requiring that the person be
15.23licensed, registered, or certified.
15.24(c) The registration requirements in this subdivision do not apply to:
15.25(1) a person who, at the time the person is performing the construction services,
15.26holds a current license, certificate, or registration under chapter 299M or 326B;
15.27(2) a person who holds a current independent contractor exemption certificate
15.28issued under this section that is in effect on September 15, 2012, except that the person
15.29must register under this section no later than the date the exemption certificate expires, is
15.30revoked, or is canceled;
15.31(3) a person who has given a bond to the state under section 326B.197 or 326B.46;
15.32(4) an employee of the person performing the construction services, if the person
15.33was in compliance with laws related to employment of the individual at the time the
15.34construction services were performed;
16.1(5) an architect or professional engineer engaging in professional practice as defined
16.2in section 326.02, subdivisions 2 and 3;
16.3(6) a school district or technical college governed under chapter 136F;
16.4(7) a person providing construction services on a volunteer basis, including but not
16.5limited to Habitat for Humanity and Builders Outreach Foundation, and their individual
16.6volunteers when engaged in activities on their behalf; or
16.7(8) a person exempt from licensing under section 326B.805, subdivision 6, clause (5).

16.8    Sec. 4. Minnesota Statutes 2011 Supplement, section 181.723, subdivision 5, is
16.9amended to read:
16.10    Subd. 5. Registration application. To obtain an independent contractor exemption
16.11certificate, the individual must submit (a) Persons required to register under subdivision 4a
16.12must submit electronically, in the manner prescribed by the commissioner, a complete
16.13application and the certificate fee required under subdivision 14 according to paragraphs
16.14(b) to (d).
16.15    (a) (b) A complete application must include all of the following information about
16.16any individual who is registering as an individual or a sole proprietor, or who owns 25
16.17percent or more of a business entity being registered:
16.18    (1) the individual's full legal name and title at applicant's business;
16.19    (2) the individual's residence business address and telephone number;
16.20    (3) the individual's business name, address, and telephone number; percentage of the
16.21applicant's business owned by the individual; and
16.22    (4) the services for which the individual is seeking an independent contractor
16.23exemption certificate;
16.24    (5) (4) the individual's Social Security number;.
16.25    (6) the individual's or the individual's business federal employer identification
16.26number, if a number has been issued to the individual or the individual's business;
16.27    (7) any information or documentation that the commissioner requires by rule that
16.28will assist the department in determining whether to grant or deny the individual's
16.29application; and
16.30    (8) the individual's sworn statement that the individual meets all of the following
16.31conditions:
16.32    (i) maintains a separate business with the individual's own office, equipment,
16.33materials, and other facilities;
16.34    (ii) holds or has applied for a federal employer identification number or has filed
16.35business or self-employment income tax returns with the federal Internal Revenue Service
17.1if the person has performed services in the previous year for which the individual is
17.2seeking the independent contractor exemption certificate;
17.3    (iii) operates under contracts to perform specific services for specific amounts of
17.4money and under which the individual controls the means of performing the services;
17.5    (iv) incurs the main expenses related to the service that the individual performs
17.6under contract;
17.7    (v) is responsible for the satisfactory completion of services that the individual
17.8contracts to perform and is liable for a failure to complete the service;
17.9    (vi) receives compensation for service performed under a contract on a commission
17.10or per-job or competitive bid basis and not on any other basis;
17.11    (vii) may realize a profit or suffer a loss under contracts to perform service;
17.12    (viii) has continuing or recurring business liabilities or obligations; and
17.13    (ix) the success or failure of the individual's business depends on the relationship of
17.14business receipts to expenditures.
17.15    (b) Individuals who are applying for or renewing a residential building contractor or
17.16residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81,
17.17326B.815, 326B.821 to 326B.86, 326B.87 to 326B.885, and 327B.041, and any rules
17.18promulgated pursuant thereto, may simultaneously apply for or renew an independent
17.19contractor exemption certificate. The commissioner shall create an application form
17.20that allows for the simultaneous application for both a residential building contractor
17.21or residential remodeler license and an independent contractor exemption certificate.
17.22If individuals simultaneously apply for or renew a residential building contractor or
17.23residential remodeler license and an independent contractor exemption certificate using
17.24the form created by the commissioner, individuals shall only be required to provide, in
17.25addition to the information required by section 326B.83 and rules promulgated pursuant
17.26thereto, the sworn statement required by paragraph (a), clause (8), and any additional
17.27information required by this subdivision that is not also required by section 326B.83 and
17.28any rules promulgated thereto. An independent contractor exemption certificate that is in
17.29effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by
17.30the commissioner or canceled by the individual.
17.31    (c) Within 30 days of receiving a complete application and the certificate fee, the
17.32commissioner must either grant or deny the application. The commissioner may deny
17.33an application for an independent contractor exemption certificate if the individual has
17.34not submitted a complete application and certificate fee or if the individual does not
17.35meet all of the conditions for holding the independent contractor exemption certificate.
17.36The commissioner may revoke an independent contractor exemption certificate if the
18.1commissioner determines that the individual no longer meets all of the conditions for
18.2holding the independent contractor exemption certificate, commits any of the actions
18.3set out in subdivision 7, or fails to cooperate with a department investigation into the
18.4continued validity of the individual's certificate. Once issued, an independent contractor
18.5exemption certificate remains in effect for four years unless:
18.6    (1) revoked by the commissioner; or
18.7    (2) canceled by the individual.
18.8    (d) If the department denies an individual's original or renewal application for
18.9an independent contractor exemption certificate or revokes an independent contractor
18.10exemption certificate, the commissioner shall issue to the individual an order denying or
18.11revoking the certificate. The commissioner may issue an administrative penalty order to
18.12an individual or person who commits any of the actions set out in subdivision 7. The
18.13commissioner may file and enforce the unpaid portion of a penalty as a judgment in
18.14district court without further notice or additional proceedings.
18.15    (e) An individual or person to whom the commissioner issues an order under
18.16paragraph (d) shall have 30 days after service of the order to request a hearing. The
18.17request for hearing must be in writing and must be served on or faxed to the commissioner
18.18at the address or facsimile number specified in the order by the 30th day after service of
18.19the order. If the individual does not request a hearing or if the individual's request for a
18.20hearing is not served on or faxed to the commissioner by the 30th day after service of the
18.21order, the order shall become a final order of the commissioner and will not be subject to
18.22review by any court or agency. The date on which a request for hearing is served by mail
18.23shall be the postmark date on the envelope in which the request for hearing is mailed. If
18.24the individual serves or faxes a timely request for hearing, the hearing shall be a contested
18.25case hearing and shall be held in accordance with chapter 14.
18.26(c) A complete application must also include the following information:
18.27(1) the applicant's legal name; assumed name filed with the secretary of state, if any;
18.28designated business address; physical address; telephone number; and e-mail address;
18.29(2) the applicant's Minnesota tax identification number, if one is required or has
18.30been issued;
18.31(3) the applicant's federal employer identification number, if one is required or
18.32has been issued;
18.33(4) evidence of the active status of the applicant's business filings with the secretary
18.34of state, if one is required or has been issued;
18.35(5) whether the applicant has any employees at the time the application is filed;
19.1(6) the names of all other persons with an ownership interest in the business entity
19.2who are not identified in paragraph (b), and the percentage of the interest owned by each
19.3person, except that the names of shareholders with less than ten percent ownership in a
19.4publicly traded corporation need not be provided;
19.5(7) information documenting compliance with workers' compensation and
19.6unemployment insurance laws;
19.7(8) a certification that the person signing the application has: reviewed it; determined
19.8that the information provided is true and accurate; and determined that the person signing
19.9is authorized to sign and file the application as an agent of the applicant. The name of the
19.10person signing, entered on an electronic application, shall constitute a valid signature of
19.11the agent on behalf of the applicant; and
19.12(9) a signed authorization for the Department of Labor and Industry to verify the
19.13information provided on or with the application.
19.14(d) A registered person must notify the commissioner within 15 days after there is a
19.15change in any of the information on the application as approved. This notification must
19.16be provided electronically in the manner prescribed by the commissioner. However, if
19.17the business entity structure, legal form of the business entity, or business ownership has
19.18changed, the person must submit a new registration application and registration fee, if
19.19any, for the new business entity.
19.20(e) The registered person must remain registered while providing construction
19.21services for another person. The provisions of sections 326B.091 and 326B.094 to
19.22326B.097 apply to this section.

19.23    Sec. 5. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision
19.24to read:
19.25    Subd. 5a. Web site. (a) The commissioner shall develop and maintain a Web site
19.26on which applicants for registration can submit a registration application. The Web site
19.27shall be designed to receive and process registration applications and promptly issue
19.28registration certificates electronically to successful applicants.
19.29(b) The commissioner shall maintain the certificates of registration on the
19.30department's official public Web site, which shall include the following information:
19.31(1) the registered person's legal business name, including any assumed name, as
19.32filed with the secretary of state;
19.33(2) the person's business address designated on the application; and
19.34(3) the effective date of the registration and the expiration date.

20.1    Sec. 6. Minnesota Statutes 2010, section 181.723, subdivision 7, is amended to read:
20.2    Subd. 7. Prohibited activities. (a) The prohibited activities in this subdivision are
20.3in addition to those prohibited in sections 326B.081 to 326B.085.
20.4    (a) (b) An individual shall not:
20.5    (1) perform work as an independent contractor who meets the qualifications under
20.6subdivision 6 without first obtaining from the department an independent contractor
20.7exemption certificate;
20.8    (2) perform work as an independent contractor when the department has denied or
20.9revoked the individual's independent contractor exemption certificate;
20.10    (3) transfer to another individual or allow another individual to use the individual's
20.11independent contractor exemption certificate;
20.12    (4) alter or falsify an independent contractor exemption certificate;
20.13    (5) misrepresent the individual's status as an independent contractor; or
20.14    (6) make a false material statement, representation, or certification; omit material
20.15information; or alter, conceal, or fail to file a document required by this section or any
20.16rule promulgated by the commissioner under rulemaking authority set out in this section.
20.17hold himself or herself out as an independent contractor unless the individual meets the
20.18requirements of subdivision 4.
20.19    (b) (c) A person who provides construction services in the course of the person's
20.20trade, business, occupation, or profession shall not:
20.21    (1) require an individual through coercion, misrepresentation, or fraudulent means to
20.22adopt independent contractor status or form a business entity;
20.23    (2) knowingly misrepresent that an individual who has not been issued or misclassify
20.24an individual as an independent contractor exemption certificate or is not performing
20.25services for the person under an independent contractor exemption certificate is an
20.26independent contractor; or
20.27    (3) contract with or perform construction services for another person without first
20.28being registered if required by subdivision 4a;
20.29(4) make a false material statement, representation, or certification; omit material
20.30information; or alter, conceal, or fail to file a document required by this section or any
20.31rule promulgated by the commissioner under rulemaking authority set out in this section.
20.32contract with or pay another person to perform construction services if the other person
20.33is not registered if required by subdivision 4a. All payments to an unregistered person
20.34for construction services on a single project site shall be considered a single violation. It
20.35is not a violation of this clause:
21.1(i) for a person to contract with or pay an unregistered person if the unregistered
21.2person was registered at the time the contract for construction services was entered into; or
21.3(ii) for a homeowner or business to contract with or pay an unregistered person if
21.4the homeowner or business is not in the trade, business, profession, or occupation of
21.5performing building construction or improvement services; or
21.6(5) be penalized for violations of this subdivision that are committed by another
21.7person. This clause applies only to violations of this paragraph.
21.8    (c) A person for whom an individual is performing services must obtain a copy of the
21.9individual's independent contractor exemption certificate before services may commence.
21.10A copy of the independent contractor exemption certificate must be retained for five years
21.11from the date of receipt by the person for whom an individual is performing services.

21.12    Sec. 7. Minnesota Statutes 2010, section 181.723, is amended by adding a subdivision
21.13to read:
21.14    Subd. 8a. Enforcement; remedies; and penalties. Notwithstanding the maximum
21.15penalty amount in section 326B.082, subdivisions 7 and 12, the maximum penalty for
21.16failure to register is $2,000, but the commissioner shall forgive the penalty if the person
21.17registers within 30 days of the date of the penalty order.

21.18    Sec. 8. Minnesota Statutes 2010, section 181.723, subdivision 10, is amended to read:
21.19    Subd. 10. Notice requirements. Unless otherwise specified, service of a document
21.20on a person under this section may be by mail, by personal service, or in accordance with
21.21any consent to service filed with the commissioner. Service by mail shall be accomplished
21.22in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service
21.23shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, subpart
21.243. Notice of a penalty order for failure to register must include a statement that the penalty
21.25shall be forgiven if the person registers within 30 days of the date of the penalty order.

21.26    Sec. 9. Minnesota Statutes 2010, section 181.723, subdivision 15, is amended to read:
21.27    Subd. 15. Notice to commissioner; review by commissioner of revenue. When
21.28the commissioner has reason to believe that an individual who holds a certificate has
21.29failed to maintain all the conditions required by subdivision 6 or is not performing
21.30services for a person under the independent contractor exemption certificate a person has
21.31violated subdivision 7, paragraph (b); or (c), clause (1) or (2), the commissioner must
21.32notify the commissioner of revenue and the commissioner of employment and economic
21.33development. Upon receipt of notification from the commissioner that an individual who
22.1holds a certificate has failed to maintain all the conditions required by subdivision 6
22.2or is not performing services for a person under the independent contractor exemption
22.3certificate, the commissioner of revenue must review the information returns required
22.4under section 6041A of the Internal Revenue Code. The commissioner of revenue shall
22.5also review the submitted certification that is applicable to returns audited or investigated
22.6under section 289A.35.

22.7    Sec. 10. Minnesota Statutes 2010, section 181.723, subdivision 16, is amended to read:
22.8    Subd. 16. Data classified. Data in applications for an independent contractor
22.9exemption certificate and any required documentation submitted to the commissioner
22.10under this section are private data on individuals or nonpublic data as defined in section
22.1113.02 . Data in exemption registration certificates issued by the commissioner are public
22.12data; except that registration information published on the department's Web site may be
22.13accessed for registration verification purposes only. Data that document a revocation
22.14or cancellation of an exemption a certificate are public data. Upon request of the
22.15Department of Revenue or the Department of Employment and Economic Development,
22.16the commissioner may release to the requesting department data classified as private or
22.17nonpublic under this subdivision or investigative data that are not public under section
22.1813.39 that relate to the issuance or denial of applications or revocations of certificates.

22.19    Sec. 11. Minnesota Statutes 2010, section 289A.31, subdivision 5, is amended to read:
22.20    Subd. 5. Withholding tax, withholding from payments to out-of-state
22.21contractors, and withholding by partnerships and small business corporations. (a)
22.22Except as provided in paragraph (b), an employer or person withholding tax under section
22.23290.92 or 290.923, subdivision 2, who fails to pay to or deposit with the commissioner a
22.24sum or sums required by those sections to be deducted, withheld, and paid, is personally
22.25and individually liable to the state for the sum or sums, and added penalties and interest,
22.26and is not liable to another person for that payment or payments. The sum or sums
22.27deducted and withheld under section 290.92, subdivision 2a or 3, or 290.923, subdivision
22.282 , must be held as a special fund in trust for the state of Minnesota.
22.29(b) If the employer or person withholding tax under section 290.92 or 290.923,
22.30subdivision 2 , fails to deduct and withhold the tax in violation of those sections, and later
22.31the taxes against which the tax may be credited are paid, the tax required to be deducted
22.32and withheld will not be collected from the employer. This does not, however, relieve the
22.33employer from liability for any penalties and interest otherwise applicable for failure to
23.1deduct and withhold. This paragraph does not apply to an employer subject to paragraph
23.2(g), or to a contractor required to withhold under section 290.92, subdivision 31.
23.3(c) Liability for payment of withholding taxes includes a responsible person or entity
23.4described in the personal liability provisions of section 270C.56.
23.5(d) Liability for payment of withholding taxes includes a third-party lender or surety
23.6described in section 270C.59.
23.7(e) A partnership or S corporation required to withhold and remit tax under section
23.8290.92, subdivisions 4b and 4c , is liable for payment of the tax to the commissioner, and a
23.9person having control of or responsibility for the withholding of the tax or the filing of
23.10returns due in connection with the tax is personally liable for the tax due.
23.11(f) A payor of sums required to be withheld under section 290.9705, subdivision
23.121 , is liable to the state for the amount required to be deducted, and is not liable to an
23.13out-of-state contractor for the amount of the payment.
23.14(g) If an employer fails to withhold tax from the wages of an employee when
23.15required to do so under section 290.92, subdivision 2a, by reason of treating such
23.16employee as not being an employee, then the liability for tax is equal to three percent of
23.17the wages paid to the employee. The liability for tax of an employee is not affected by
23.18the assessment or collection of tax under this paragraph. The employer is not entitled to
23.19recover from the employee any tax determined under this paragraph.
23.20EFFECTIVE DATE.This section is effective for payments made after June 30,
23.212012.

23.22    Sec. 12. Minnesota Statutes 2010, section 326B.081, subdivision 3, is amended to read:
23.23    Subd. 3. Applicable law. "Applicable law" means the provisions of sections
23.24181.723, 327.31 to 327.36, and this chapter, and all rules, orders, stipulation agreements,
23.25settlements, compliance agreements, licenses, registrations, certificates, and permits
23.26adopted, issued, or enforced by the department under sections 181.723, 327.31 to 327.36,
23.27or this chapter.

23.28    Sec. 13. REPEALER.
23.29(a) Minnesota Statutes 2010, section 181.723, subdivision 17, is repealed effective
23.30May 15, 2011.
23.31(b) Minnesota Statutes 2010, section 181.723, subdivisions 6, 8, 9, 10, 11, 12, and
23.3214, and Minnesota Rules, parts 5202.0100; 5202.0110; 5202.0120; 5202.0130; 5202.0140;
23.335202.0150; and 5202.0160, are repealed July 1, 2012, except they shall remain in effect
23.34for the regulation of an individual holding an independent contractor exemption certificate
24.1issued before July 1, 2012, under Minnesota Statutes 2010, section 181.723, subdivision
24.25, until the exemption certificate expires, is revoked, or is canceled.
24.3(c) Minnesota Statutes 2010, section 290.92, subdivision 31, is repealed effective
24.4for payments made after June 30, 2012.

24.5    Sec. 14. EFFECTIVE DATE.
24.6Sections 1 to 10 and 12 are effective July 1, 2012, except that those sections do not
24.7apply to the regulation of an individual who holds an independent contractor exemption
24.8certificate issued before July 1, 2012, under Minnesota Statutes 2010, section 181.723,
24.9subdivision 5, until the exemption certificate expires, or is revoked or canceled."
24.10Delete the title and insert:

24.11"A bill for an act

24.12relating to labor and industry; making changes to the State Building Code and
24.13State Fire Code; clarifying employee classification of independent contractors;
24.14providing a pilot project for contractor registration; providing for penalties;
24.15amending Minnesota Statutes 2010, sections 178.01; 178.03, subdivisions 3,
24.164; 178.05, subdivisions 1, 2; 178.06; 178.07; 178.08; 178.09, subdivisions 1,
24.172; 181.723, subdivisions 1, 4, 7, 10, 15, 16, by adding subdivisions; 289A.31,
24.18subdivision 5; 299F.011, by adding a subdivision; 326B.081, subdivision 3;
24.19326B.092, subdivisions 2, 7; 326B.103, subdivision 3; 326B.809; Minnesota
24.20Statutes 2011 Supplement, sections 181.723, subdivision 5; 326B.0981,
24.21subdivision 4; 326B.46, subdivision 1a; 326B.49, subdivision 1; repealing
24.22Minnesota Statutes 2010, section 181.723, subdivisions 6, 8, 9, 10, 11, 12,
24.2314, 17; Minnesota Rules, parts 1300.0230, subpart 4; 1301.1201; 1302.0600;
24.243801.3640; 3801.3650; 3801.3660; 3801.3670; 3801.3680; 3801.3690;
24.253801.3700; 3801.3710; 3801.3720; 3801.3730; 3801.3740; 3801.3760;
24.263801.3790; 3801.3800; 5202.0100; 5202.0110; 5202.0120; 5202.0130;
24.275202.0140; 5202.0150; 5202.0160."

25.1	We request the adoption of this report and repassage of the bill.
25.2	Senate Conferees:
25.3	.....		.....
25.4	Jeremy R. Miller		Geoff Michel
25.5	.....
25.6	David J. Tomassoni
25.7	House Conferees:
25.8	.....		.....
25.9	Mike LeMieur		Joyce Peppin
25.10	.....
25.11	Larry Hosch