Bill Text: MN SF2065 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Omnibus jobs and economic development bill
Sponsorship: Moderate Partisan Bill (Democrat 4-1)
Status: (Passed) 2014-05-21 - Secretary of State Chapter 305 [SF2065 Detail]
Download: Minnesota-2013-SF2065-Engrossed.html
1.2relating to labor and industry; extending an independent contractor pilot
1.3program; making federal conformity changes to the apprenticeship program;
1.4modifying municipal building code enforcement; providing an exception to
1.5high pressure boiler requirements; requiring a workgroup to study plumbing at
1.6certain resorts; appropriating money for a high pressure boiler study;amending
1.7Minnesota Statutes 2012, sections 178.02; 178.03; 178.041, subdivision 2;
1.8178.07; 178.09; 178.10; 181.723, subdivisions 4, 4a, 5, 7, 8a; 326B.106,
1.9subdivision 2, by adding subdivisions; 326B.988; proposing coding for new law
1.10in Minnesota Statutes, chapters 178; 326B; repealing Minnesota Statutes 2012,
1.11sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts
1.125200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14,
1.1315; 5200.0340; 5200.0360; 5200.0390.
1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.15 Section 1. [178.011] DEFINITIONS.
1.16 Subdivision 1. Scope. The terms defined in this section have the meanings given
1.17and apply to this chapter.
1.18 Subd. 2. Apprentice. "Apprentice" means a worker who is at least 16 years of
1.19age who is employed to learn an apprenticeable trade or occupation in a registered
1.20apprenticeship program under this chapter.
1.21 Subd. 3. Apprenticeship Advisory Board. "Apprenticeship Advisory Board" or
1.22"board" means the Apprenticeship Advisory Board established under section 178.02 and
1.23as an advisory State Apprenticeship Council as defined in Code of Federal Regulations,
1.24title 29, section 29.2.
1.25 Subd. 4. Apprenticeship program. "Apprenticeship program" means a program
1.26registered under this chapter that includes standards containing all terms and conditions
1.27for the qualification, recruitment, selection, employment, and training of apprentices,
2.1as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written
2.2apprenticeship agreement.
2.3 Subd. 5. Commissioner. "Commissioner" means the commissioner of labor and
2.4industry or a duly designated representative of the commissioner who is an employee
2.5of the department.
2.6 Subd. 6. Department. "Department" means the Department of Labor and Industry
2.7established under section 175.001.
2.8 Subd. 7. Division. "Division" means the department's Labor Standards and
2.9Apprenticeship Division, established under sections 175.16 and 178.03, and the State
2.10Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29,
2.11section 29.2.
2.12 Subd. 8. Employer. "Employer" means any person or organization employing
2.13an apprentice whether or not the person or organization is a party to an apprenticeship
2.14agreement with the apprentice.
2.15 Subd. 9. Journeyworker. "Journeyworker" means a person who has attained a level
2.16of skill, abilities, and competencies recognized within an industry as having mastered the
2.17skills and competencies required for the trade or occupation.
2.18 Subd. 10. Registered apprenticeship agreement. "Registered apprenticeship
2.19agreement" or "apprenticeship agreement" means a written agreement, complying with
2.20section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is
2.21a minor, the minor's parent or guardian, which contains the terms and conditions of the
2.22employment and training of the apprentice.
2.23 Subd. 11. Related instruction. "Related instruction" means an organized and
2.24systematic form of instruction designed to provide the apprentice with the knowledge of
2.25the theoretical and technical subjects related to the apprentice's trade or occupation. The
2.26instruction may be given in a classroom through trade, occupational, or industrial courses
2.27or, when of equivalent value, by correspondence, electronic media, or other forms of
2.28self-study approved by the commissioner.
2.29 Subd. 12. Sponsor. "Sponsor" means an employer, employer association, or
2.30apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29,
2.31section 29.2, that operates an apprenticeship program and in whose name the program is
2.32or is to be registered or approved.
2.33EFFECTIVE DATE.This section is effective January 1, 2015.
2.34 Sec. 2. [178.012] UNIFORMITY WITH FEDERAL LAW.
3.1 Subdivision 1. Apprenticeship rules. Federal regulations governing apprenticeship
3.2in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29,
3.3sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to
3.4amendment by this chapter or by rule under section 178.041.
3.5 Subd. 2. State Apprenticeship Agency. The commissioner shall take all necessary
3.6steps as permitted by law to obtain and maintain the status of the division as a State
3.7Apprenticeship Agency recognized by the United States Department of Labor under Code
3.8of Federal Regulations, title 29, part 29, section 29.13.
3.9EFFECTIVE DATE.This section is effective January 1, 2015.
3.10 Sec. 3. Minnesota Statutes 2012, section 178.02, is amended to read:
3.11178.02 APPRENTICESHIP ADVISORY BOARD.
3.12 Subdivision 1. Members. The commissionerof labor and industry, hereinafter
3.13called the commissioner, shall appoint an Apprenticeship Board, hereinafter referred
3.14to as the board, composed of three representatives each from employer and employee
3.15organizations, and two representatives of the general public.The director A designee of
3.16the commissioner of education responsible for career and technical education or designee
3.17shall be an ex officio member of the board and shall serve in an advisory capacity only.
3.18 Subd. 2. Terms. The board shall not expire. The terms, compensation, and removal
3.19of appointed members shall be as provided in section15.059 .
3.20 Subd. 4. Duties. The board shall meet at the call of the commissioner and
3.21shall advise the commissioner about matters relating to this chapter. It shall propose
3.22occupational classifications for apprenticeship programs; propose minimum standards for
3.23apprenticeship programs and agreements; and advise on the establishment of such policies,
3.24procedures, and rules as the board or commissioner deems necessary in implementing
3.25the intent of this chapter.
3.26EFFECTIVE DATE.This section is effective January 1, 2015.
3.27 Sec. 4. Minnesota Statutes 2012, section 178.03, is amended to read:
3.28178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP.
3.29 Subdivision 1. Establishment of division. There is established a Division of Labor
3.30Standards and Apprenticeship in the Department of Labor and Industry. This division
3.31shall be administered by a director, and be under the supervision of the commissionerof
3.32labor and industry, hereinafter referred to as the commissioner.
4.1 Subd. 2. Director of labor standards and apprenticeship. The commissioner
4.2shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter
4.3referred to as the director, and may appoint and employ such clerical, technical, and
4.4professional help as is necessary to accomplish the purposes of this chapter. The director
4.5and division staff shall be appointed and shall serve in the classified service pursuant to
4.6civil service law and rules.
4.7 Subd. 3. Duties and functions.The director, under the supervision of the
4.8commissioner, and with the advice and consultation of the Apprenticeship Board, is
4.9authorized: to administer the provisions of this chapter; to promote apprenticeship and
4.10other forms of on-the-job learning; to establish, in cooperation and consultation with the
4.11Apprenticeship Board and with the apprenticeship committees, conditions, training, and
4.12learning standards for the approval of apprenticeship programs and agreements, which
4.13conditions and standards shall in no case be lower than those (1) prescribed by this chapter,
4.14and (2) established under The division shall be administered as prescribed by this chapter
4.15and in accordance with Code of Federal Regulations, title 29, part 29; to promote equal
4.16employment opportunity in apprenticeship and other on-the-job learning and to establish
4.17a Minnesota plan for equal employment opportunity in apprenticeship which shall be
4.18consistent with standards established under Code of Federal Regulations, title 29, part 30,
4.19as amended; to issue certificates of registration to sponsors of approved apprenticeship
4.20programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion
4.21that approval is for the best interest of the apprentice, any apprenticeship agreement which
4.22meets the standards established hereunder; to terminate any apprenticeship agreement in
4.23accordance with the provisions of such agreement; to keep a record of apprenticeship
4.24agreements and their disposition; to issue certificates of completion of apprenticeship;
4.25and to perform such other duties as the commissioner deems necessary to carry out the
4.26intent of this chapter; provided, that the administration and supervision of supplementary
4.27instruction in related subjects for apprentices; coordination of instruction on a concurrent
4.28basis with job experiences, and the selection and training of teachers and coordinators
4.29for such instruction shall be the function of state and local boards responsible for
4.30vocational education. The director division shall have the authority to make wage
4.31determinations applicable to the graduated schedule of wages and journeyworker wage
4.32rate for apprenticeship agreements, giving consideration to the existing wage rates
4.33prevailing throughout the state, except that no wage determination by the director shall
4.34alter an existing wage provision for apprentices or journeyworkers that is contained in a
4.35bargaining agreement in effect between an employer and an organization of employees,
5.1nor shall the director make any determination for the beginning rate for an apprentice that
5.2is below the wage minimum established by federal or state law.
5.3 Subd. 4. Reciprocity approval. Thedirector commissioner, if requested by a
5.4sponsoring entity program sponsor, shall grant reciprocity approval to apprentices,
5.5apprenticeship programsof employers and unions who jointly form a sponsoring entity
5.6on a multistate basis in other than the building construction industry if such programs
5.7are in conformity with this chapter and have been registered in compliance with Code
5.8of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized
5.9by or registered with the United States Department of Labor, Office of Apprenticeship,
5.10when such approval is necessary for federal purposes under Code of Federal Regulations,
5.11title 29, section
29.13(a) or
29.13(b)(7), and standards that are registered in other states.
5.12Program sponsors seeking reciprocal approval must meet the requirements of this chapter
5.13including the wage and hour provisions and apprentice ratio standards.
5.14EFFECTIVE DATE.This section is effective January 1, 2015.
5.15 Sec. 5. [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.
5.16 Subdivision 1. Application. To apply for the registration of an apprenticeship
5.17program, a sponsor shall submit a completed application to the division on a form provided
5.18by the commissioner, which shall include standards of apprenticeship that comply with the
5.19requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.
5.20 Subd. 2. Provisional approval. The division shall grant a provisional approval
5.21period of one year to an applicant demonstrating that the standards submitted meet the
5.22requirements of this chapter. The division may review each program granted provisional
5.23approval for quality and for conformity with the requirements of this section and section
5.24178.036 at any time, but not less than biannually, during the provisional approval period.
5.25After review:
5.26(1) a program that conforms with the requirements of this chapter:
5.27(i) may be approved; or
5.28(ii) may continue to be provisionally approved through the first full training cycle; and
5.29(2) a program not in operation or not conforming with the requirements of this
5.30chapter during the provisional approval period shall be deregistered.
5.31The division shall inform the applicant of the results of its review in writing at least 30
5.32days prior to the expiration of the provisional approval period.
5.33 Subd. 3. Review. The division shall review all programs for quality and for
5.34conformity with the requirements of this chapter at the end of the first full training
6.1cycle. Subsequent review of a registered program must be conducted at least annually.
6.2Programs not in operation or not conforming to this chapter at the time of review may be
6.3recommended for deregistration.
6.4 Subd. 4. Program modification. To apply for modification of or change to a
6.5registered program, a sponsor shall submit a written request for modification to the
6.6division. The division shall approve or disapprove a modification request within 90 days
6.7from the date of receipt. If approved, the modification or change must be recorded and
6.8acknowledged within 90 days of its approval as an amendment to the registered program.
6.9If not approved, the division shall notify the sponsor in writing of the disapproval and the
6.10reasons for the disapproval. The division may provide technical assistance to a sponsor
6.11seeking to modify or change a registered program.
6.12 Subd. 5. Notice. When an application is submitted under subdivision 1 by an
6.13employer or employers' association, and where the standards, collective bargaining
6.14agreement, or other instrument provides for participation by a union in any manner in the
6.15operation of the substantive matters of the apprenticeship program, and the participation
6.16is exercised, a written acknowledgment of the union's agreement or a written statement
6.17specifying that the union has no objection to the registration is required. Where no union
6.18participation is evidenced and practiced, the employer or employers' association shall
6.19simultaneously furnish to the union, if any, which functions as the collective bargaining
6.20agent of the employees to be trained, a copy of its application for registration and the
6.21apprenticeship program. The commissioner shall provide a reasonable time of not less
6.22than 30 days nor more than 60 days for receipt of union comments, if any, before final
6.23action on the application for registration is taken. Union comments must be submitted to
6.24the division during the time period specified by the commissioner.
6.25 Subd. 6. Certificate. Upon registration of a program, the commissioner shall issue a
6.26certificate of registration to the sponsor. Within 30 days after the certificate is mailed or
6.27otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of
6.28at least one executed apprenticeship agreement.
6.29 Subd. 7. Policy requirement. It must be the policy of the employer and sponsor
6.30that the recruitment, selection, employment, and training of apprentices during their
6.31apprenticeship must be without discrimination due to race, color, creed, religion, national
6.32origin, sex, sexual orientation, marital status, physical or mental disability, receipt of
6.33public assistance, or age. The employer and sponsor must take affirmative action to
6.34provide equal opportunity in apprenticeship and must operate the apprenticeship program
6.35as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota
6.36plan for equal opportunity in apprenticeship.
7.1EFFECTIVE DATE.This section is effective January 1, 2015.
7.2 Sec. 6. [178.036] STANDARDS OF APPRENTICESHIP.
7.3 Subdivision 1. Federal uniformity. Each program must have an organized, written
7.4plan of program standards embodying the terms and conditions of employment, training,
7.5and supervision of one or more apprentices in an apprenticeable trade or occupation, as
7.6defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by
7.7a sponsor and employer who has undertaken to carry out the apprentice training program.
7.8The program standards must contain the provisions that address each item identified in
7.9Code of Federal Regulations, title 29, part 29, section 29.5(b).
7.10 Subd. 2. Standards. (a) In addition to the requirements in subdivision 1, the
7.11program standards must also contain provisions in compliance with paragraphs (b) to (k):
7.12(b) Related instruction. A minimum of 144 hours of related instruction is required
7.13in each training cycle. At least 50 hours of related safety instruction is required during the
7.14term of apprenticeship. Time spent in related instruction cannot be considered as hours of
7.15work as required by the job process schedule. Every apprenticeship instructor must meet
7.16the Department of Education's requirements for a vocational-technical instructor or be a
7.17subject matter expert, which is an individual such as a journeyworker who is recognized
7.18within an industry as having expertise in a specific trade or occupation.
7.19(c) Job process schedule. Each time-based apprenticeship program must include
7.20not less than 2,000 hours of reasonably continuous employment.
7.21(d) Ratios. If the apprentice is covered by a collective bargaining agreement, the
7.22employer must follow the provisions of the collective bargaining agreement regarding the
7.23maximum number of apprentices to be employed at the work site for each journeyworker
7.24employed at the same work site. In the absence of a collective bargaining agreement, for
7.25the purposes of direct supervision and the safety and instruction of the apprentice, the
7.26ratio shall be:
7.27(1) one apprentice for the first journeyworker employed at the work site plus one
7.28apprentice for each additional three journeyworkers employed at the work site;
7.29(2) the work site ratio utilized by the majority of registered apprenticeship
7.30agreements in the same trade or occupation; or
7.31(3) a program-specific ratio that has been approved by the Apprenticeship Advisory
7.32Board.
7.33(e) Graduated schedule of wages. The graduated schedule of wages for an
7.34apprenticeship program shall be calculated as a percentage of the journeyworker rate in
7.35the majority of registered apprenticeship agreements in the same trade or occupation in the
8.1state. If there are no registered apprenticeship agreements in the same trade or occupation,
8.2the graduated schedule of wages may be determined by the sponsor.
8.3(f) Probationary period. The standards must provide a period of probation of not
8.4more than 500 hours of employment and instruction extending over not more than four
8.5months, during which time the apprenticeship agreement shall be terminated by the director
8.6upon written request of either party, and providing that after such probationary period the
8.7apprenticeship agreement may be terminated by the director by mutual agreement of all
8.8parties thereto, or terminated by the director for good and sufficient reason.
8.9(g) Dispute resolution. The program standards must include a provision that
8.10controversies or differences concerning the terms of the apprenticeship agreement which
8.11cannot be resolved by the parties thereto, or which are not covered by a collective
8.12bargaining agreement, may be submitted to the commissioner for determination as
8.13provided for in section 178.09.
8.14(h) Term of apprenticeship. The term of apprenticeship may be measured either
8.15through:
8.16(1) the time-based approach, which requires completion of at least 2,000 work
8.17hours of on-the-job training;
8.18(2) the competency-based approach, which requires the attainment of competency; or
8.19(3) the hybrid approach, which is a blend of the time-based and competency-based
8.20approaches.
8.21(i) Training cycle. The training cycle for related instruction must be designated in
8.22hours, days, or months for each individual trade or occupation included in the standards.
8.23(j) Responsibilities of the apprentice. An apprentice employed under the program
8.24standards shall agree to be punctual and regular in attendance, and to endeavor to the best
8.25of the apprentice's ability to perfect the required skills for the trade or occupation.
8.26(k) Coordination of apprentices. The sponsor shall designate a qualified individual
8.27as a coordinator of apprentices who shall:
8.28(1) maintain an adequate record of progress in training each apprentice;
8.29(2) be responsible for assuring that the requirements of the applicable learning
8.30program are met during the prescribed training term; and
8.31(3) perform other duties as may be assigned by the sponsor relative to the
8.32development and operation of an effective program of apprenticeship.
8.33EFFECTIVE DATE.This section is effective January 1, 2015.
8.34 Sec. 7. Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read:
9.1 Subd. 2. Chapter 14 applies. Rules, modifications, amendments, and repeals
9.2thereof which may be issued by the commissioner under thissection chapter shall be
9.3adopted in accordance with chapter 14 and shall have the force and effect of law.
9.4EFFECTIVE DATE.This section is effective January 1, 2015.
9.5 Sec. 8. [178.044] DETERMINATION OF APPRENTICE WAGES.
9.6 Subdivision 1. Maximum hours. The maximum number of hours of work per week
9.7shall not exceed either the number prescribed by law or the customary regular number of
9.8hours per week for the employees of the company by which the apprentice is employed.
9.9Time spent in related and supplemental instruction for any apprentice shall not be included
9.10in the maximum number of hours of work per workweek.
9.11 Subd. 2. Overtime. An apprentice may be allowed to work overtime provided that
9.12the overtime work does not conflict with related instruction course attendance. All time
9.13in excess of the number of hours of work per week as specified in the apprenticeship
9.14agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
9.15be increased by the same percentage as the journeyworker's rate of pay for overtime is
9.16increased in the same industry or establishment.
9.17 Subd. 3. Journeyworker wage rate. If the apprentice is not covered by a collective
9.18bargaining agreement, the journeyworker wage rate upon which the apprentice agreement
9.19graduated schedule of wages is calculated shall be:
9.20(1) the most current Minnesota state prevailing wage rate determination for the
9.21same trade or occupation in the county in which the apprentice's employer is located. If
9.22an apprenticeship agreement entered into after January 1, 2015, does not specify fringe
9.23benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated
9.24must be the total rate listed in the wage determination; or
9.25(2) if there is no Minnesota prevailing wage rate determination for the same trade or
9.26occupation in the county in which the apprentice's employer is located, the journeyworker
9.27wage may be determined by the sponsor with the approval of the division.
9.28EFFECTIVE DATE.This section is effective January 1, 2015.
9.29 Sec. 9. Minnesota Statutes 2012, section 178.07, is amended to read:
9.30178.07 REGISTERED APPRENTICESHIP AGREEMENTS.
9.31 Subdivision 1. Approval required. All terminations, cancellations, and transfers of
9.32apprenticeship agreements shall be approved by the division in writing. The division must
10.1be notified in writing by the sponsor within 45 days of all terminations, cancellations,
10.2or transfer of apprenticeship agreements.
10.3 Subd. 2. Signatures required. Apprenticeship agreements shall be signed by
10.4the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal
10.5guardian. When a minor enters into an apprenticeship agreement under this chapter for a
10.6period of learning extending into majority, the apprenticeship agreement shall likewise be
10.7binding for such a period as may be covered during the apprentice's majority.
10.8 Subd. 3. Contents. Every apprenticeship agreement entered into under this chapter
10.9shall contain:
10.10(1) the names of the contracting parties, and the signatures required by subdivision 1;
10.11(2) the date of birth, and information as to the race and sex of the apprentice, and, on
10.12a voluntary basis, the apprentice's Social Security number;
10.13(3) a statement of the trade, craft, occupation, or business which the apprentice is to
10.14be taught, and the time at which the apprenticeship will begin and end;
10.15(3) contact information of the sponsor and the division;
10.16(4) a statementshowing of the trade or occupation which the apprentice is to be
10.17taught, the date on which the apprenticeship will begin, and the number of hours to be
10.18spent by the apprentice in work and the number of hours to be spent in concurrent,
10.19supplementary instruction in related subjects, which instruction shall be not less than 144
10.20hours during each year of the apprenticeship term. The maximum number of hours of
10.21work per week not including time spent in related and supplemental instruction for any
10.22apprentice shall not exceed either the number prescribed by law or the customary regular
10.23number of hours per week for the employees of the company by which the apprentice is
10.24employed. An apprentice may be allowed to work overtime provided that the overtime
10.25work does not conflict with supplementary instruction course attendance. All time in
10.26excess of the number of hours of work per week as specified in the apprenticeship
10.27agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
10.28be increased by the same percentage as the journeyworker's rate of pay for overtime is
10.29increased in the same industry or establishment related instruction;
10.30(5) a statement setting forth a schedule of the processes in the trade, occupation,
10.31or industry divisions in which the apprentice is to be taught and the approximate time to
10.32be spent at each process;
10.33(6) (5) a statement of the graduated scale of wages to be paid the apprentice
10.34and whether the required school time shall be compensated under sections 178.036,
10.35subdivision 2, paragraph (e), and 178.044, as applicable;
11.1(7) (6) a statement providing for a period of probation of not more than 500 hours
11.2of employment and instruction extending over not more than four months, during which
11.3time the apprenticeship agreement shall be terminated by the director upon written request
11.4of either party, and providing that after such probationary period the apprenticeship
11.5agreement may be terminated by the director by mutual agreement of all parties thereto,
11.6or terminated by the director for good and sufficient reason listing any fringe benefits
11.7to be provided to the apprentice;
11.8(8) a provision that controversies or differences concerning the terms of the
11.9apprenticeship agreement which cannot be resolved by the parties thereto, or which are
11.10not covered by a collective bargaining agreement, may be submitted to the director for
11.11determination as provided for in section
178.09;
11.12(9) a provision that an employer who is unable to fulfill an obligation under the
11.13apprenticeship agreement may, with the approval of the director, transfer such contract to
11.14any other employer, provided that the apprentice consents and that such other employer
11.15agrees to assume the obligations of the apprenticeship agreement; and
11.16(7) a statement incorporating as part of the agreement the registered standards of
11.17the apprenticeship program on the date of the agreement and as they may be amended
11.18during the period of the agreement;
11.19(8) a statement that the apprentice will be accorded equal opportunity in all phases
11.20of apprenticeship employment and training, without discrimination due to race, color,
11.21creed, religion, national origin, sex, sexual orientation, marital status, physical or mental
11.22disability, receipt of public assistance, or age; and
11.23(10) (9) such additional terms and conditions as may be prescribed or approved by
11.24thedirector commissioner not inconsistent with the provisions of this chapter.
11.25EFFECTIVE DATE.This section is effective January 1, 2015.
11.26 Sec. 10. Minnesota Statutes 2012, section 178.09, is amended to read:
11.27178.09 INVESTIGATIONSBY DIRECTOR AND ENFORCEMENT OF
11.28APPRENTICESHIP AGREEMENTS.
11.29 Subdivision 1. Complaint. Upon the complaint of any interested person or upon the
11.30director's division's own initiative, the director division may investigate to determine if
11.31there has been a violation of the terms of an apprenticeship agreement made under this
11.32chapter. Complaints must be made in writing within 60 days of the events giving rise to the
11.33complaint and must set forth the specific matters complained of together with relevant facts
11.34and circumstances. Copies of pertinent documents and correspondence must accompany
12.1the complaint. Thedirector division may conduct such proceedings as are necessary for
12.2that investigation and determination. All such proceedings shall be on a fair and impartial
12.3basisand shall be conducted according to rules promulgated under section
178.041 .
12.4 Subd. 2. Determination; appeal. Within 90 days after the receipt of a complaint,
12.5the division must issue a determination. The determination of thedirector division shall
12.6be filed with the commissioner and written notice shall be served on all parties affected
12.7by it. Any person aggrieved by any determination or action of the director may appeal
12.8to the commissioner. If no appeal is filed with the commissioner within ten days of the
12.9date of service, thedirector's division's determination shall become the final order of the
12.10commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing
12.11board to be composed of three members of the Apprenticeship Advisory Board appointed
12.12under section178.02 , one member being a representative of an employer organization, one
12.13representative being a member of an employee organization, and one member representing
12.14the general public. The board shall hold a hearing on the appeal after due notice to the
12.15interested parties and shall submit to the commissioner findings of fact and a recommended
12.16decision accompanied by a memorandum of the reasons for it. Within 30 days after
12.17submission, the commissioner may adopt the recommended decision of the board, or
12.18disregard the recommended decision of the board and prepare a decision based on the
12.19findings of fact and accompanied by a memorandum of reasons for that decision. Written
12.20notice of the commissioner's determination and order shall be served on all parties affected
12.21by it. Any person aggrievedor affected by any the commissioner's determination or order
12.22of the commissioner may appeal from it to the district court having jurisdiction at any time
12.23within 30 days after the date of the order by service of a written notice of appeal on the
12.24commissioner. Upon service of the notice of appeal, the commissioner shall file with the
12.25court administrator of the district court to which the appeal is taken a certified copy of the
12.26order appealed from, together with findings of fact on which it is based. The person serving
12.27a notice of appeal shall, within five days after its service, file it, with proof of service, with
12.28the court administrator of the court to which the appeal is taken. The district court shall
12.29then have jurisdiction over the appeal and it shall be entered in the records of the district
12.30court and tried de novo according to the applicable rules. Any person aggrieved or affected
12.31by any determination, order, or decision of the district court may appeal as in other civil
12.32cases and order under this section is entitled to judicial review under sections 14.63 to
12.3314.68 in the same manner that a person aggrieved by a final decision in a contested case is
12.34entitled to judicial review. The commissioner's determination and order under this section
12.35shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.
13.1 Subd. 3. Service. Service under this chapter may be by certified first class mail,
13.2personal service, or in accordance with any consent to service filed with the commissioner.
13.3Service by mail shall be accomplished in the manner provided in Minnesota Rules, part
13.41400.5550, subpart 2. Personal service shall be accomplished in the manner provided in
13.5Minnesota Rules, part 1400.5550, subpart 3.
13.6EFFECTIVE DATE.This section is effective January 1, 2015.
13.7 Sec. 11. [178.091] INVESTIGATIONS AND ENFORCEMENT;
13.8APPRENTICESHIP PROGRAMS AND STANDARDS.
13.9 Subdivision 1. Investigations. In order to carry out the purposes of this chapter,
13.10the commissioner may investigate registered apprenticeship programs and applicants
13.11for program registration to determine whether there are any grounds for deregistration
13.12of a registered program or for the denial of an application. Persons requested by the
13.13commissioner to provide information or produce documents shall respond within 30 days
13.14of the commissioner's service of the request.
13.15 Subd. 2. Grounds. (a) The commissioner may deregister a registered apprenticeship
13.16program or deny an application for registration if:
13.17(1) the program does not comply with any requirement of Code of Federal
13.18Regulations, title 29, part 29 or 32, this chapter, or any rule adopted pursuant to section
13.19178.041;
13.20(2) the program does not have at least one registered apprentice in each trade or
13.21occupation, except for the following specified periods of time:
13.22(i) within the first 30 days after the date a program is registered; or
13.23(ii) within one year of the date that a program graduates an apprentice in a trade or
13.24occupation and the date of registration for the next apprentice in that trade or occupation; or
13.25(3) the program is not conducted, operated, or administered in accordance with
13.26the program's registered standards or with the requirements of this chapter, including
13.27but not limited to:
13.28(i) failure to provide on-the-job learning;
13.29(ii) failure to provide related instruction;
13.30(iii) failure of an employer to pay the apprentice a progressively increasing schedule
13.31of wages consistent with the apprentice's skills acquired; or
13.32(iv) persistent and significant failure to perform successfully.
13.33(b) The commissioner may deregister an apprenticeship program at the written
13.34request of the sponsor in a manner consistent with the provisions of Code of Federal
13.35Regulations, title 29, part 29, section 29.8(a).
14.1 Subd. 3. Reinstatement. If the commissioner deregisters a registered apprenticeship
14.2program, the sponsor may request reinstatement not before one year after the effective
14.3date of the deregistration. The commissioner may, as a condition of reinstatement, require
14.4the sponsor to comply with reasonable conditions the commissioner considers necessary
14.5to effectuate the purposes of this chapter.
14.6 Subd. 4. Orders; hearings related to orders. (a) If the commissioner determines
14.7that a registered apprenticeship program should be deregistered or that an application for
14.8registration should be denied, the commissioner shall issue to and serve on the sponsor an
14.9order deregistering the program's registration or denying the application for registration.
14.10(b) An order issued under this subdivision must specify:
14.11(1) the deficiency and the required remedy or corrective action;
14.12(2) the time period to effectuate the required remedy or corrective action, which
14.13shall be no more than 90 days; and
14.14(3) any other requirement consistent with Code of Federal Regulations, title 29,
14.15part 29, section 29.8(b).
14.16(c) The sponsor to whom the commissioner issues an order under this subdivision
14.17may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.
14.18EFFECTIVE DATE.This section is effective January 1, 2015.
14.19 Sec. 12. Minnesota Statutes 2012, section 178.10, is amended to read:
14.20178.10 LIMITATION.
14.21(a) The provisions of this chapter shall have no application to thoseinfants
14.22 individuals who are apprenticed by the commissioner of corrections pursuant to sections
14.23242.43
and
242.44 .
14.24(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:
14.25(1) any apprenticeship provision in any collective bargaining agreement between
14.26employers and employees establishing higher apprenticeship standards; or
14.27(2) any special provision for veterans, minority persons, or women, in the standards,
14.28apprentice qualifications, or operation of the program or in the apprenticeship agreement
14.29which is not otherwise prohibited by law.
14.30EFFECTIVE DATE.This section is effective January 1, 2015.
14.31 Sec. 13. Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read:
14.32 Subd. 4. Independent contractor. (a) An individual is an independent contractor
14.33and not an employee of the person for whom the individual is performing services in the
15.1course of the person's trade, business, profession, or occupation only if the individualis
15.2registered with the Department of Labor and Industry, if required under subdivision 4a,
15.3and the individual:
15.4(1) maintains a separate business with the individual's own office, equipment,
15.5materials, and other facilities;
15.6(2)(i) holds or has applied for a federal employer identification number or (ii) has
15.7filed business or self-employment income tax returns with the federal Internal Revenue
15.8Service if the individual has performed services in the previous year;
15.9(3) is operating under contract to perform the specific services for the person
15.10for specific amounts of money and under which the individual controls the means of
15.11performing the services;
15.12(4) is incurring the main expenses related to the services that the individual is
15.13performing for the person under the contract;
15.14(5) is responsible for the satisfactory completion of the services that the individual
15.15has contracted to perform for the person and is liable for a failure to complete the services;
15.16(6) receives compensation from the person for the services performed under the
15.17contract on a commission or per-job or competitive bid basis and not on any other basis;
15.18(7) may realize a profit or suffer a loss under the contract to perform services for
15.19the person;
15.20(8) has continuing or recurring business liabilities or obligations; and
15.21(9) the success or failure of the individual's business depends on the relationship of
15.22business receipts to expenditures.
15.23An individual who is not registered, if required by section 326B.701, is presumed to
15.24be an employee of a person for whom the individual performs services in the course of
15.25the person's trade, business, profession, or occupation. The person for whom the services
15.26were performed may rebut this presumption by showing that the unregistered individual
15.27met all nine factors in this paragraph at the time the services were performed.
15.28(b) If an individual is an owner or partial owner of a business entity, the individual is
15.29an employee of the person for whom the individual is performing services in the course
15.30of the person's trade, business, profession, or occupation, and is not an employee of the
15.31business entity in which the individual has an ownership interest, unless:
15.32(1) the business entity meets the nine factors in paragraph (a);
15.33(2) invoices and payments aresubmitted in the name of the business entity; and
15.34(3) the business entity is registered with the secretary of state, if required; and.
15.35(4) the business entity is registered with the Department of Labor and Industry,
15.36if required under subdivision 4a.
16.1If the business entity in which the individual has an ownership interest is not
16.2registered, if required by section 326B.701, the individual is presumed to be an employee
16.3of a person for whom the individual performs services and not an employee of the business
16.4entity in which the individual has an ownership interest. The person for whom the services
16.5were performed may rebut the presumption by showing that the business entity met the
16.6requirements of clauses (1) to (3) at the time the services were performed.
16.7EFFECTIVE DATE.This section is effective the day following final enactment.
16.8 Sec. 14. Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read:
16.9 Subd. 4a. Applicability; registrationpilot project requirement. (a) The
16.10commissioner shall implement a pilot project, effective July 1, 2012, for the registration
16.11of Persons who perform public or private sector commercial or residential building
16.12construction or improvement services as described in subdivision 2 must register with the
16.13commissioner as provided in this section. The purpose ofthe pilot project is to evaluate
16.14whether the information obtained through registration assists registration is to assist
16.15 the Department of Labor and Industry, the Department of Employment and Economic
16.16Development, and the Department of Revenue to enforce laws related to misclassification
16.17of employees.The commissioner shall issue a report to the legislature no later than
16.18January 1, 2014, on recommendations for amendments to the registration program,
16.19including reasonable registration fees to be used to aid in enforcing misclassification laws.
16.20The commissioner must not charge a fee for registration under the pilot project, but may
16.21take the enforcement action specified in subdivision 8a. The pilot project shall expire on
16.22June 30, 2014, unless extended by the legislature.
16.23(b) Except as provided in paragraph (c), any person who performs construction
16.24services in the state on or after September 15, 2012, must register with the commissioner
16.25as provided insubdivision 5 section 326B.701 before performing construction services for
16.26another person. The requirements for registration underthis subdivision section 326B.701
16.27 are not a substitute for, and do not relieve a person from complying with, any other law
16.28requiring that the person be licensed, registered, or certified.
16.29(c) The registration requirements inthis subdivision section 326B.701 do not apply to:
16.30(1) a person who, at the time the person is performing the construction services,
16.31holds a current license, certificate, or registration under chapter 299M or 326B;
16.32(2) a person who holds a current independent contractor exemption certificate
16.33issued under this section that is in effect on September 15, 2012, except that the person
16.34must register underthis section 326B.701 no later than the date the exemption certificate
16.35expires, is revoked, or is canceled;
17.1(3) a person who has given a bond to the state under section326B.197 or
326B.46 ;
17.2(4) an employee of the person performing the construction services, if the person
17.3was in compliance with laws related to employment of the individual at the time the
17.4construction services were performed;
17.5(5) an architect or professional engineer engaging in professional practice as defined
17.6in section326.02, subdivisions 2 and 3;
17.7(6) a school district or technical college governed under chapter 136F;
17.8(7) a person providing construction services on a volunteer basis, including but not
17.9limited to Habitat for Humanity and Builders Outreach Foundation, and their individual
17.10volunteers when engaged in activities on their behalf; or
17.11(8) a person exempt from licensing under section326B.805, subdivision 6 , clause (5).
17.12EFFECTIVE DATE.This section is effective the day following final enactment.
17.13 Sec. 15. Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read:
17.14 Subd. 5. Registration application. (a) Persons required to register under
17.15subdivision 4a section 326B.701 must submit electronically, in the manner prescribed by
17.16the commissioner, a complete application according to paragraphs (b) to (d).
17.17 (b) A complete application must include all of the following information about any
17.18individual who is registering as an individual or a sole proprietor, or who owns 25 percent
17.19or more of a business entity being registered:
17.20 (1) the individual's full legal name and title at the applicant's business;
17.21 (2) the individual's business address and telephone number;
17.22 (3) the percentage of the applicant's business owned by the individual; and
17.23 (4) the individual's Social Security number.
17.24(c) A complete application must also include the following information:
17.25(1) the applicant's legal name; assumed name filed with the secretary of state, if any;
17.26designated business address; physical address; telephone number; and e-mail address;
17.27(2) the applicant's Minnesota tax identification number, if one is required or has
17.28been issued;
17.29(3) the applicant's federal employer identification number, if one is required or
17.30has been issued;
17.31(4) evidence of the active status of the applicant's business filings with the secretary
17.32of state, if one is required or has been issued;
17.33(5) whether the applicant has any employees at the time the application is filed;
17.34(6) the names of all other persons with an ownership interest in the business entity
17.35who are not identified in paragraph (b), and the percentage of the interest owned by each
18.1person, except that the names of shareholders with less than ten percent ownership in a
18.2publicly traded corporation need not be provided;
18.3(7) information documenting compliance with workers' compensation and
18.4unemployment insurance laws;
18.5(8) a certification that the person signing the application has: reviewed it; determined
18.6that the information provided is true and accurate; and determined that the person signing
18.7is authorized to sign and file the application as an agent of the applicant. The name of the
18.8person signing, entered on an electronic application, shall constitute a valid signature of
18.9the agent on behalf of the applicant; and
18.10(9) a signed authorization for the Department of Labor and Industry to verify the
18.11information provided on or with the application.
18.12(d) A registered person must notify the commissioner within 15 days after there is a
18.13change in any of the information on the application as approved. This notification must
18.14be provided electronically in the manner prescribed by the commissioner. However, if
18.15the business entity structure, legal form of the business entity, or business ownership has
18.16changed, the person must submit a new registration application and registration fee, if
18.17any, for the new business entity.
18.18(e) The registered person must remain registered while providing construction
18.19services for another person. The provisions of sections326B.091 and,
326B.094 to,
18.20326B.095, and326B.097 apply to this section 326B.701. A person with an expired
18.21registration shall not provide construction services for another person if registration is
18.22required under this section. Registration application and expiration time frames are as
18.23follows:
18.24(1) all registrations issued on or before June 30, 2015, expire on June 30, 2015;
18.25(2) all registrations issued after June 30, 2015, expire on the following June 30
18.26of each odd-numbered year; and
18.27(3) a person may submit a registration or renewal application starting April 1 of the
18.28year the registration expires. If a renewal application is submitted later than May 1 of
18.29the expiration year, registration may expire before the department has issued or denied
18.30the registration.
18.31EFFECTIVE DATE.This section is effective the day following final enactment.
18.32 Sec. 16. Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read:
18.33 Subd. 7. Prohibited activities related to independent contractor status. (a) The
18.34prohibited activities in this subdivision are in addition to those prohibited in sections
18.35326B.081
to
326B.085 .
19.1 (b) An individual shall not hold himself or herself out as an independent contractor
19.2unless the individual meets the requirements of subdivision 4.
19.3 (c) A person who provides construction services in the course of the person's trade,
19.4business, occupation, or profession shall not:
19.5 (1) require an individual through coercion, misrepresentation, or fraudulent means to
19.6adopt independent contractor status or form a business entity;
19.7 (2) knowingly misrepresent or misclassify an individual as an independent
19.8contractor;.
19.9 Subd. 7a. Prohibited activities related to registration. (a) The prohibited activities
19.10in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.
19.11(b) A person who provides construction services in the course of the person's trade,
19.12business, occupation, or profession shall not:
19.13(3) (1) contract with or perform construction services for another person without first
19.14being registered if required bysubdivision 4a section 326B.701;
19.15(4) (2) contract with or pay another person to perform construction services if
19.16the other person is not registered if required by subdivision 4a. All payments to an
19.17unregistered person for construction services on a single project site shall be considered a
19.18single violation. It is not a violation of this clause:
19.19(i) for a person to contract with or pay an unregistered person if the unregistered
19.20person was registered at the time the contract for construction services was entered into; or
19.21(ii) for a homeowner or business to contract with or pay an unregistered person if
19.22the homeowner or business is not in the trade, business, profession, or occupation of
19.23performing building construction or improvement services; or
19.24(5) (3) be penalized for violations of this subdivision that are committed by another
19.25person. This clause applies only to violations of this paragraph.
19.26EFFECTIVE DATE.This section is effective the day following final enactment.
19.27 Sec. 17. Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read:
19.28 Subd. 8a. Enforcement; remedies; and penalties. (a) Notwithstanding the
19.29maximum penalty amount in section326B.082, subdivisions 7 and 12, the maximum
19.30penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if
19.31the person registers within 30 days of the date of the penalty order.
19.32(b) The penalty for contracting with or paying an unregistered person to perform
19.33construction services in violation of subdivision 7a, paragraph (b), clause (2), shall be as
19.34provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive
19.35the penalty for the first violation.
20.1EFFECTIVE DATE.This section is effective the day following final enactment.
20.2 Sec. 18. Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read:
20.3 Subd. 2. Public buildings and state-licensed facilities; administration by
20.4commissioner. Unless the commissioner has entered into an agreement under subdivision
20.52a or 2b, the commissioner shall administer and enforce the State Building Code as a
20.6municipality with respect to public buildings and state-licensed facilities in the state.
20.7The commissioner shall establish appropriate permit, plan review, inspection fees, and
20.8surcharges for public buildings and state-licensed facilities.
20.9Municipalities other than the state having an agreement with the commissioner
20.10for code administration and enforcement service for public buildings and state licensed
20.11facilities shall charge their customary fees, including surcharge, to be paid directly to the
20.12jurisdiction by the applicant seeking authorization to construct a public building or a state
20.13licensed facility. The commissioner shall sign an agreement with a municipality other than
20.14the state for plan review, code administration, and code enforcement service for public
20.15buildings and state licensed facilities in the jurisdiction if the building officials of the
20.16municipality meet the requirements of section
326B.133 and wish to provide those services
20.17and if the commissioner determines that the municipality has enough adequately trained
20.18and qualified building inspectors to provide those services for the construction project.
20.19The commissioner may direct the state building official to assist a community that
20.20has been affected by a natural disaster with building evaluation and other activities related
20.21to building codes.
20.22Administration and enforcement in a municipality under this section must apply
20.23any optional provisions of the State Building Code adopted by the municipality. A
20.24municipality adopting any optional code provision shall notify the state building official
20.25within 30 days of its adoption.
20.26The commissioner shall administer and enforce the provisions of the code relating to
20.27elevators statewide, except as provided for under section
326B.184, subdivision 4.
20.28 Sec. 19. Minnesota Statutes 2012, section 326B.106, is amended by adding a
20.29subdivision to read:
20.30 Subd. 2a. Public buildings and state-licensed facilities; municipal agreement
20.31for all building projects. (a) The commissioner shall enter into an agreement with a
20.32municipality other than the state for plan review, inspection, code administration, and
20.33code enforcement on public buildings and state-licensed facilities in the jurisdiction if
20.34the municipality requests to provide those services and the commissioner determines
21.1that the municipality has enough adequately trained and qualified inspectors to provide
21.2those services. In determining whether a municipality has enough adequately trained and
21.3qualified inspectors to provide the service, the commissioner must consider all inspectors
21.4who are employed by the municipality, are under contract with the municipality to provide
21.5inspection services, or are obligated to provide inspection services to the municipality
21.6under any other lawful agreement.
21.7(b) The criteria used to make this determination shall be provided in writing to
21.8the municipality requesting an agreement.
21.9(c) If the commissioner determines that the municipality lacks enough adequately
21.10trained and qualified inspectors to provide the required services, a written explanation of
21.11the deficiencies shall be provided to the municipality.
21.12(d) The municipality shall be given an opportunity to remedy any deficiencies
21.13and request reconsideration of the commissioner's determination. A request for
21.14reconsideration must be in writing and accompanied by substantiating documentation. A
21.15request for reconsideration must be received by the commissioner within 90 days of the
21.16determination explanation. The commissioner shall review the information and issue a
21.17final determination to the municipality within 30 days of the request.
21.18(e) A municipality aggrieved by a final decision of the commissioner to not enter into
21.19an agreement may appeal to be heard as a contested case in accordance with chapter 14.
21.20 Sec. 20. Minnesota Statutes 2012, section 326B.106, is amended by adding a
21.21subdivision to read:
21.22 Subd. 2b. Public buildings and state-licensed facilities; municipal agreement
21.23for certain building projects. The commissioner shall enter into an agreement with a
21.24municipality other than the state for inspection, code administration, and code enforcement
21.25of reserved projects occurring on public buildings and state-licensed facilities in its
21.26jurisdiction if the municipality has a designated building official as required by section
21.27326B.133 and requests to provide those services.
21.28For purposes of this subdivision, "reserved projects" includes the following:
21.29(1) roof covering replacement that does not add roof load;
21.30(2) towers requiring special inspection;
21.31(3) single-level storage buildings not exceeding 5,000 square feet;
21.32(4) exterior maintenance work, including replacement of siding, windows, and doors;
21.33(5) HVAC unit replacement that does not add roof load or ventilation capacity;
21.34(6) accessibility upgrades not involving building additions or structural alterations;
22.1(7) remodeling that does not change the building's occupancy, structural system, exit
22.2access or discharge pattern, or mechanical load; and
22.3(8) other projects determined to be reserved by the commissioner.
22.4 Sec. 21. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.5subdivision to read:
22.6 Subd. 2c. Municipal fees. Municipalities other than the state having an agreement
22.7under subdivision 2a with the commissioner for code administration and enforcement
22.8service for public buildings and state-licensed facilities or inspecting under authority of
22.9subdivision 2b shall charge their customary fees, including surcharge, to be paid directly
22.10to the jurisdiction by the applicant seeking authorization to construct a public building or
22.11a state-licensed facility.
22.12 Sec. 22. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.13subdivision to read:
22.14 Subd. 2d. Public buildings and state-licensed facilities; municipal obligation.
22.15An agreement with the commissioner under subdivision 2a or 2b must require the
22.16municipality to attend to applicable aspects of code administration and enforcement as
22.17described in the agreement and established by rule.
22.18 Sec. 23. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.19subdivision to read:
22.20 Subd. 2e. Public buildings and state-licensed facilities; applicable code.
22.21Administration and enforcement in a municipality under subdivisions 2a and 2b must
22.22apply any optional provisions of the State Building Code adopted by the municipality. A
22.23municipality adopting any optional code provision shall notify the state building official
22.24within 30 days of its adoption.
22.25 Sec. 24. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.26subdivision to read:
22.27 Subd. 2f. Natural disasters. The commissioner may direct the state building
22.28official to assist a community that has been affected by a natural disaster with building
22.29evaluation and other activities related to building codes.
22.30 Sec. 25. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.31subdivision to read:
23.1 Subd. 2g. Elevators. The commissioner shall administer and enforce the provisions
23.2of the code relating to elevators statewide, except as provided for under section326B.184,
23.3subdivision 4 .
23.4 Sec. 26. [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION.
23.5The following definition applies to this section: "business entity" means a person
23.6other than an individual or a sole proprietor.
23.7EFFECTIVE DATE.This section is effective the day following final enactment.
23.8 Sec. 27. Minnesota Statutes 2012, section 326B.988, is amended to read:
23.9326B.988 EXCEPTIONS.
23.10 (a) The provisions of sections326B.93 to
326B.998 shall not apply to:
23.11 (1) boilers and pressure vessels in buildings occupied solely for residence purposes
23.12with accommodations for not more than five families;
23.13 (2) railroad locomotives operated by railroad companies for transportation purposes;
23.14 (3) air tanks installed on the right-of-way of railroads and used directly in the
23.15operation of trains;
23.16 (4) boilers and pressure vessels under the direct jurisdiction of the United States;
23.17 (5) unfired pressure vessels having an internal or external working pressure not
23.18exceeding 15 psig with no limit on size;
23.19 (6) pressure vessels used for storage of compressed air not exceeding five cubic feet
23.20in volume and equipped with an ASME code stamped safety valve set at a maximum of
23.21100 psig;
23.22 (7) pressure vessels having an inside diameter not exceeding six inches;
23.23 (8) every vessel that contains water under pressure, including those containing air
23.24that serves only as a cushion, whose design pressure does not exceed 300 psig and whose
23.25design temperature does not exceed 210 degrees Fahrenheit;
23.26 (9) boiler or pressure vessels located on farms used solely for agricultural or
23.27horticultural purposes; for purposes of this section, boilers used for mint oil extraction
23.28are considered used for agricultural or horticultural purposes, provided that the owner or
23.29lessee complies with the inspection requirements contained in section326B.958 ;
23.30 (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
23.31 (11) unfired pressure vessels in petroleum refineries;
23.32 (12) an air tank or pressure vessel which is an integral part of a passenger motor
23.33bus, truck, or trailer;
24.1 (13) hot water heating and other hot liquid boilers not exceeding a heat input of
24.2750,000 BTU per hour;
24.3 (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000
24.4BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity
24.5of 120 gallons, or a pressure of 160 psig;
24.6 (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
24.7 (16) pressure vessels operated full of water or other liquid not materially more
24.8hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees
24.9Fahrenheit or a pressure of 200 psig;
24.10 (17) steam-powered turbines at papermaking facilities which are powered by steam
24.11generated by steam facilities at a remote location;
24.12 (18) manually fired boilers for model locomotive, boat, tractor, stationary engine,
24.13or antique motor vehicles constructed or maintained only as a hobby for exhibition,
24.14educational or historical purposes and not for commercial use, if the boilers have an
24.15inside diameter of 12 inches or less, or a grate area of two square feet or less, and are
24.16equipped with an ASME stamped safety valve of adequate size, a water level indicator,
24.17and a pressure gauge;
24.18(19) any pressure vessel used as an integral part of an electrical circuit breaker;
24.19(20) pressure vessels used for the storage of refrigerant if they are built to ASME
24.20code specifications, registered with the national board, and equipped with an ASME
24.21code-stamped pressure-relieving device set no higher than the maximum allowable
24.22working pressure of the vessel. This does not include pressure vessels used in ammonia
24.23refrigeration systems;
24.24(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide,
24.25argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME
24.26or Minnesota Department of Transportation specifications and equipped with an ASME
24.27code-stamped pressure-relieving device. The owner of the vessels shall perform annual
24.28visual inspections and planned maintenance on these vessels to ensure vessel integrity;
24.29(22) pressure vessels used for the storage of compressed air for self-contained
24.30breathing apparatuses;
24.31(23) hot water heating or other hot liquid boilers vented directly to the atmosphere;
24.32and
24.33(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic
24.34feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or
24.35less.
24.36 (b) An engineer's license is not required for hot water supply boilers.
25.1 (c) An engineer's license and annual inspection by the department is not required
25.2for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not
25.3exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
25.4 (d) Electric boilers not exceeding a maximum working pressure of 50 psig,
25.5maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure
25.6vessels and shall not require an engineer license to operate.
25.7(e) Sawmills, located in a county with a population of less than 8,000 according to
25.8the last federal census and that utilize steam for the drying of lumber, are not required to
25.9meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part
25.105225.1180, only if all of the following conditions are met:
25.11(1) the owner complies with the inspection requirements under section 326B.958,
25.12and the licensing requirements under section 326B.972; and
25.13(2) the boiler:
25.14(i) is equipped with electronic control systems that are remotely operated but which
25.15require on site manual reset of system faults;
25.16(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
25.17(iii) has automatic safety mechanisms built into the remote monitoring systems that
25.18send an alarm upon detection of a fault condition, and an on site alarm that will sound
25.19upon detection of a fault condition and which may be heard at a distance of 500 feet;
25.20(iv) has a water treatment program that is supervised by a third party water treatment
25.21company; and
25.22(v) is attended on site by a licensed boiler operator at least two times in a 24-hour
25.23period. If the boiler is not attended more than twice in a 24-hour period, the period
25.24between checks must not be less than eight hours.
25.25This paragraph expires August 1, 2016.
25.26 Sec. 28. PLUMBING AT RESORTS; WORKGROUP.
25.27The Department of Labor and Industry, in consultation with the Department of
25.28Health, must convene a workgroup to provide recommendations to the legislature on the
25.29requirements for plumbing at resorts classified as either class 1c or class 4c property under
25.30Minnesota Statutes, section 273.13, and licensed by the Department of Health under
25.31Minnesota Statutes, section 157.16. The Department must report its recommendations to
25.32the legislature not later than January 1, 2015.
25.33 Sec. 29. HIGH PRESSURE BOILER RULES AND RECOMMENDATIONS;
25.34APPROPRIATION.
26.1$100,000 in fiscal year 2015 is appropriated from the general fund to the
26.2commissioner of labor and industry to update and modernize rules related to high pressure
26.3boilers. The commissioner must make recommendations by October 1, 2015, to the
26.4committees of the house of representatives and senate with jurisdiction over construction
26.5codes and licensing on changes related to boilers that operate at levels of 15 PSI or higher.
26.6This is a onetime appropriation.
26.7 Sec. 30. REVISOR'S INSTRUCTION.
26.8The revisor of statutes shall replace the phrase "Division of Voluntary
26.9Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.
26.10EFFECTIVE DATE.This section is effective January 1, 2015.
26.11 Sec. 31. REVISOR'S INSTRUCTION.
26.12The revisor of statutes shall renumber the citations in column A with the citations
26.13in column B. The revisor shall correct any cross-references required because of the
26.14renumbering and may make necessary grammatical and technical changes, including
26.15changes to sentence structure, to preserve the meaning of the text.
26.27EFFECTIVE DATE.This section is effective the day following final enactment.
26.28 Sec. 32. REPEALER.
26.29(a) Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and
26.30178.08, are repealed.
26.31(b) Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5,
26.327, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, are repealed.
26.33EFFECTIVE DATE.This section is effective January 1, 2015.
1.3program; making federal conformity changes to the apprenticeship program;
1.4modifying municipal building code enforcement; providing an exception to
1.5high pressure boiler requirements; requiring a workgroup to study plumbing at
1.6certain resorts; appropriating money for a high pressure boiler study;amending
1.7Minnesota Statutes 2012, sections 178.02; 178.03; 178.041, subdivision 2;
1.8178.07; 178.09; 178.10; 181.723, subdivisions 4, 4a, 5, 7, 8a; 326B.106,
1.9subdivision 2, by adding subdivisions; 326B.988; proposing coding for new law
1.10in Minnesota Statutes, chapters 178; 326B; repealing Minnesota Statutes 2012,
1.11sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts
1.125200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14,
1.1315; 5200.0340; 5200.0360; 5200.0390.
1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.15 Section 1. [178.011] DEFINITIONS.
1.16 Subdivision 1. Scope. The terms defined in this section have the meanings given
1.17and apply to this chapter.
1.18 Subd. 2. Apprentice. "Apprentice" means a worker who is at least 16 years of
1.19age who is employed to learn an apprenticeable trade or occupation in a registered
1.20apprenticeship program under this chapter.
1.21 Subd. 3. Apprenticeship Advisory Board. "Apprenticeship Advisory Board" or
1.22"board" means the Apprenticeship Advisory Board established under section 178.02 and
1.23as an advisory State Apprenticeship Council as defined in Code of Federal Regulations,
1.24title 29, section 29.2.
1.25 Subd. 4. Apprenticeship program. "Apprenticeship program" means a program
1.26registered under this chapter that includes standards containing all terms and conditions
1.27for the qualification, recruitment, selection, employment, and training of apprentices,
2.1as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written
2.2apprenticeship agreement.
2.3 Subd. 5. Commissioner. "Commissioner" means the commissioner of labor and
2.4industry or a duly designated representative of the commissioner who is an employee
2.5of the department.
2.6 Subd. 6. Department. "Department" means the Department of Labor and Industry
2.7established under section 175.001.
2.8 Subd. 7. Division. "Division" means the department's Labor Standards and
2.9Apprenticeship Division, established under sections 175.16 and 178.03, and the State
2.10Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29,
2.11section 29.2.
2.12 Subd. 8. Employer. "Employer" means any person or organization employing
2.13an apprentice whether or not the person or organization is a party to an apprenticeship
2.14agreement with the apprentice.
2.15 Subd. 9. Journeyworker. "Journeyworker" means a person who has attained a level
2.16of skill, abilities, and competencies recognized within an industry as having mastered the
2.17skills and competencies required for the trade or occupation.
2.18 Subd. 10. Registered apprenticeship agreement. "Registered apprenticeship
2.19agreement" or "apprenticeship agreement" means a written agreement, complying with
2.20section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is
2.21a minor, the minor's parent or guardian, which contains the terms and conditions of the
2.22employment and training of the apprentice.
2.23 Subd. 11. Related instruction. "Related instruction" means an organized and
2.24systematic form of instruction designed to provide the apprentice with the knowledge of
2.25the theoretical and technical subjects related to the apprentice's trade or occupation. The
2.26instruction may be given in a classroom through trade, occupational, or industrial courses
2.27or, when of equivalent value, by correspondence, electronic media, or other forms of
2.28self-study approved by the commissioner.
2.29 Subd. 12. Sponsor. "Sponsor" means an employer, employer association, or
2.30apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29,
2.31section 29.2, that operates an apprenticeship program and in whose name the program is
2.32or is to be registered or approved.
2.33EFFECTIVE DATE.This section is effective January 1, 2015.
2.34 Sec. 2. [178.012] UNIFORMITY WITH FEDERAL LAW.
3.1 Subdivision 1. Apprenticeship rules. Federal regulations governing apprenticeship
3.2in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29,
3.3sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to
3.4amendment by this chapter or by rule under section 178.041.
3.5 Subd. 2. State Apprenticeship Agency. The commissioner shall take all necessary
3.6steps as permitted by law to obtain and maintain the status of the division as a State
3.7Apprenticeship Agency recognized by the United States Department of Labor under Code
3.8of Federal Regulations, title 29, part 29, section 29.13.
3.9EFFECTIVE DATE.This section is effective January 1, 2015.
3.10 Sec. 3. Minnesota Statutes 2012, section 178.02, is amended to read:
3.11178.02 APPRENTICESHIP ADVISORY BOARD.
3.12 Subdivision 1. Members. The commissioner
3.13
3.14
3.15organizations, and two representatives of the general public.
3.16the commissioner of education responsible for career and technical education or designee
3.17shall be an ex officio member of the board and shall serve in an advisory capacity only.
3.18 Subd. 2. Terms. The board shall not expire. The terms, compensation, and removal
3.19of appointed members shall be as provided in section
3.20 Subd. 4. Duties. The board shall meet at the call of the commissioner and
3.21shall advise the commissioner about matters relating to this chapter. It shall propose
3.22occupational classifications for apprenticeship programs; propose minimum standards for
3.23apprenticeship programs and agreements; and advise on the establishment of such policies,
3.24procedures, and rules as the board or commissioner deems necessary in implementing
3.25the intent of this chapter.
3.26EFFECTIVE DATE.This section is effective January 1, 2015.
3.27 Sec. 4. Minnesota Statutes 2012, section 178.03, is amended to read:
3.28178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP.
3.29 Subdivision 1. Establishment of division. There is established a Division of Labor
3.30Standards and Apprenticeship in the Department of Labor and Industry. This division
3.31shall be administered by a director, and be under the supervision of the commissioner
3.32
4.1 Subd. 2. Director of labor standards and apprenticeship. The commissioner
4.2shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter
4.3referred to as the director, and may appoint and employ such clerical, technical, and
4.4professional help as is necessary to accomplish the purposes of this chapter. The director
4.5and division staff shall be appointed and shall serve in the classified service pursuant to
4.6civil service law and rules.
4.7 Subd. 3. Duties and functions.
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15and in accordance with Code of Federal Regulations, title 29, part 29; to promote equal
4.16employment opportunity in apprenticeship and other on-the-job learning and to establish
4.17a Minnesota plan for equal employment opportunity in apprenticeship which shall be
4.18consistent with standards established under Code of Federal Regulations, title 29, part 30,
4.19as amended
4.20
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31determinations applicable to the graduated schedule of wages and journeyworker wage
4.32rate for apprenticeship agreements, giving consideration to the existing wage rates
4.33prevailing throughout the state, except that no wage determination by the director shall
4.34alter an existing wage provision for apprentices or journeyworkers that is contained in a
4.35bargaining agreement in effect between an employer and an organization of employees,
5.1nor shall the director make any determination for the beginning rate for an apprentice that
5.2is below the wage minimum established by federal or state law.
5.3 Subd. 4. Reciprocity approval. The
5.4
5.5apprenticeship programs
5.6
5.7
5.8
5.9
5.10
5.11
5.12Program sponsors seeking reciprocal approval must meet the requirements of this chapter
5.13including the wage and hour provisions and apprentice ratio standards.
5.14EFFECTIVE DATE.This section is effective January 1, 2015.
5.15 Sec. 5. [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.
5.16 Subdivision 1. Application. To apply for the registration of an apprenticeship
5.17program, a sponsor shall submit a completed application to the division on a form provided
5.18by the commissioner, which shall include standards of apprenticeship that comply with the
5.19requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.
5.20 Subd. 2. Provisional approval. The division shall grant a provisional approval
5.21period of one year to an applicant demonstrating that the standards submitted meet the
5.22requirements of this chapter. The division may review each program granted provisional
5.23approval for quality and for conformity with the requirements of this section and section
5.24178.036 at any time, but not less than biannually, during the provisional approval period.
5.25After review:
5.26(1) a program that conforms with the requirements of this chapter:
5.27(i) may be approved; or
5.28(ii) may continue to be provisionally approved through the first full training cycle; and
5.29(2) a program not in operation or not conforming with the requirements of this
5.30chapter during the provisional approval period shall be deregistered.
5.31The division shall inform the applicant of the results of its review in writing at least 30
5.32days prior to the expiration of the provisional approval period.
5.33 Subd. 3. Review. The division shall review all programs for quality and for
5.34conformity with the requirements of this chapter at the end of the first full training
6.1cycle. Subsequent review of a registered program must be conducted at least annually.
6.2Programs not in operation or not conforming to this chapter at the time of review may be
6.3recommended for deregistration.
6.4 Subd. 4. Program modification. To apply for modification of or change to a
6.5registered program, a sponsor shall submit a written request for modification to the
6.6division. The division shall approve or disapprove a modification request within 90 days
6.7from the date of receipt. If approved, the modification or change must be recorded and
6.8acknowledged within 90 days of its approval as an amendment to the registered program.
6.9If not approved, the division shall notify the sponsor in writing of the disapproval and the
6.10reasons for the disapproval. The division may provide technical assistance to a sponsor
6.11seeking to modify or change a registered program.
6.12 Subd. 5. Notice. When an application is submitted under subdivision 1 by an
6.13employer or employers' association, and where the standards, collective bargaining
6.14agreement, or other instrument provides for participation by a union in any manner in the
6.15operation of the substantive matters of the apprenticeship program, and the participation
6.16is exercised, a written acknowledgment of the union's agreement or a written statement
6.17specifying that the union has no objection to the registration is required. Where no union
6.18participation is evidenced and practiced, the employer or employers' association shall
6.19simultaneously furnish to the union, if any, which functions as the collective bargaining
6.20agent of the employees to be trained, a copy of its application for registration and the
6.21apprenticeship program. The commissioner shall provide a reasonable time of not less
6.22than 30 days nor more than 60 days for receipt of union comments, if any, before final
6.23action on the application for registration is taken. Union comments must be submitted to
6.24the division during the time period specified by the commissioner.
6.25 Subd. 6. Certificate. Upon registration of a program, the commissioner shall issue a
6.26certificate of registration to the sponsor. Within 30 days after the certificate is mailed or
6.27otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of
6.28at least one executed apprenticeship agreement.
6.29 Subd. 7. Policy requirement. It must be the policy of the employer and sponsor
6.30that the recruitment, selection, employment, and training of apprentices during their
6.31apprenticeship must be without discrimination due to race, color, creed, religion, national
6.32origin, sex, sexual orientation, marital status, physical or mental disability, receipt of
6.33public assistance, or age. The employer and sponsor must take affirmative action to
6.34provide equal opportunity in apprenticeship and must operate the apprenticeship program
6.35as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota
6.36plan for equal opportunity in apprenticeship.
7.1EFFECTIVE DATE.This section is effective January 1, 2015.
7.2 Sec. 6. [178.036] STANDARDS OF APPRENTICESHIP.
7.3 Subdivision 1. Federal uniformity. Each program must have an organized, written
7.4plan of program standards embodying the terms and conditions of employment, training,
7.5and supervision of one or more apprentices in an apprenticeable trade or occupation, as
7.6defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by
7.7a sponsor and employer who has undertaken to carry out the apprentice training program.
7.8The program standards must contain the provisions that address each item identified in
7.9Code of Federal Regulations, title 29, part 29, section 29.5(b).
7.10 Subd. 2. Standards. (a) In addition to the requirements in subdivision 1, the
7.11program standards must also contain provisions in compliance with paragraphs (b) to (k):
7.12(b) Related instruction. A minimum of 144 hours of related instruction is required
7.13in each training cycle. At least 50 hours of related safety instruction is required during the
7.14term of apprenticeship. Time spent in related instruction cannot be considered as hours of
7.15work as required by the job process schedule. Every apprenticeship instructor must meet
7.16the Department of Education's requirements for a vocational-technical instructor or be a
7.17subject matter expert, which is an individual such as a journeyworker who is recognized
7.18within an industry as having expertise in a specific trade or occupation.
7.19(c) Job process schedule. Each time-based apprenticeship program must include
7.20not less than 2,000 hours of reasonably continuous employment.
7.21(d) Ratios. If the apprentice is covered by a collective bargaining agreement, the
7.22employer must follow the provisions of the collective bargaining agreement regarding the
7.23maximum number of apprentices to be employed at the work site for each journeyworker
7.24employed at the same work site. In the absence of a collective bargaining agreement, for
7.25the purposes of direct supervision and the safety and instruction of the apprentice, the
7.26ratio shall be:
7.27(1) one apprentice for the first journeyworker employed at the work site plus one
7.28apprentice for each additional three journeyworkers employed at the work site;
7.29(2) the work site ratio utilized by the majority of registered apprenticeship
7.30agreements in the same trade or occupation; or
7.31(3) a program-specific ratio that has been approved by the Apprenticeship Advisory
7.32Board.
7.33(e) Graduated schedule of wages. The graduated schedule of wages for an
7.34apprenticeship program shall be calculated as a percentage of the journeyworker rate in
7.35the majority of registered apprenticeship agreements in the same trade or occupation in the
8.1state. If there are no registered apprenticeship agreements in the same trade or occupation,
8.2the graduated schedule of wages may be determined by the sponsor.
8.3(f) Probationary period. The standards must provide a period of probation of not
8.4more than 500 hours of employment and instruction extending over not more than four
8.5months, during which time the apprenticeship agreement shall be terminated by the director
8.6upon written request of either party, and providing that after such probationary period the
8.7apprenticeship agreement may be terminated by the director by mutual agreement of all
8.8parties thereto, or terminated by the director for good and sufficient reason.
8.9(g) Dispute resolution. The program standards must include a provision that
8.10controversies or differences concerning the terms of the apprenticeship agreement which
8.11cannot be resolved by the parties thereto, or which are not covered by a collective
8.12bargaining agreement, may be submitted to the commissioner for determination as
8.13provided for in section 178.09.
8.14(h) Term of apprenticeship. The term of apprenticeship may be measured either
8.15through:
8.16(1) the time-based approach, which requires completion of at least 2,000 work
8.17hours of on-the-job training;
8.18(2) the competency-based approach, which requires the attainment of competency; or
8.19(3) the hybrid approach, which is a blend of the time-based and competency-based
8.20approaches.
8.21(i) Training cycle. The training cycle for related instruction must be designated in
8.22hours, days, or months for each individual trade or occupation included in the standards.
8.23(j) Responsibilities of the apprentice. An apprentice employed under the program
8.24standards shall agree to be punctual and regular in attendance, and to endeavor to the best
8.25of the apprentice's ability to perfect the required skills for the trade or occupation.
8.26(k) Coordination of apprentices. The sponsor shall designate a qualified individual
8.27as a coordinator of apprentices who shall:
8.28(1) maintain an adequate record of progress in training each apprentice;
8.29(2) be responsible for assuring that the requirements of the applicable learning
8.30program are met during the prescribed training term; and
8.31(3) perform other duties as may be assigned by the sponsor relative to the
8.32development and operation of an effective program of apprenticeship.
8.33EFFECTIVE DATE.This section is effective January 1, 2015.
8.34 Sec. 7. Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read:
9.1 Subd. 2. Chapter 14 applies. Rules, modifications, amendments, and repeals
9.2thereof which may be issued by the commissioner under this
9.3adopted in accordance with chapter 14 and shall have the force and effect of law.
9.4EFFECTIVE DATE.This section is effective January 1, 2015.
9.5 Sec. 8. [178.044] DETERMINATION OF APPRENTICE WAGES.
9.6 Subdivision 1. Maximum hours. The maximum number of hours of work per week
9.7shall not exceed either the number prescribed by law or the customary regular number of
9.8hours per week for the employees of the company by which the apprentice is employed.
9.9Time spent in related and supplemental instruction for any apprentice shall not be included
9.10in the maximum number of hours of work per workweek.
9.11 Subd. 2. Overtime. An apprentice may be allowed to work overtime provided that
9.12the overtime work does not conflict with related instruction course attendance. All time
9.13in excess of the number of hours of work per week as specified in the apprenticeship
9.14agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
9.15be increased by the same percentage as the journeyworker's rate of pay for overtime is
9.16increased in the same industry or establishment.
9.17 Subd. 3. Journeyworker wage rate. If the apprentice is not covered by a collective
9.18bargaining agreement, the journeyworker wage rate upon which the apprentice agreement
9.19graduated schedule of wages is calculated shall be:
9.20(1) the most current Minnesota state prevailing wage rate determination for the
9.21same trade or occupation in the county in which the apprentice's employer is located. If
9.22an apprenticeship agreement entered into after January 1, 2015, does not specify fringe
9.23benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated
9.24must be the total rate listed in the wage determination; or
9.25(2) if there is no Minnesota prevailing wage rate determination for the same trade or
9.26occupation in the county in which the apprentice's employer is located, the journeyworker
9.27wage may be determined by the sponsor with the approval of the division.
9.28EFFECTIVE DATE.This section is effective January 1, 2015.
9.29 Sec. 9. Minnesota Statutes 2012, section 178.07, is amended to read:
9.30178.07 REGISTERED APPRENTICESHIP AGREEMENTS.
9.31 Subdivision 1. Approval required. All terminations, cancellations, and transfers of
9.32apprenticeship agreements shall be approved by the division in writing. The division must
10.1be notified in writing by the sponsor within 45 days of all terminations, cancellations,
10.2or transfer of apprenticeship agreements.
10.3 Subd. 2. Signatures required. Apprenticeship agreements shall be signed by
10.4the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal
10.5guardian. When a minor enters into an apprenticeship agreement under this chapter for a
10.6period of learning extending into majority, the apprenticeship agreement shall likewise be
10.7binding for such a period as may be covered during the apprentice's majority.
10.8 Subd. 3. Contents. Every apprenticeship agreement entered into under this chapter
10.9shall contain:
10.10(1) the names of the contracting parties, and the signatures required by subdivision 1;
10.11(2) the date of birth, and information as to the race and sex of the apprentice, and, on
10.12a voluntary basis, the apprentice's Social Security number;
10.13
10.14
10.15(3) contact information of the sponsor and the division;
10.16(4) a statement
10.17taught, the date on which the apprenticeship will begin, and the number of hours to be
10.18spent by the apprentice in work and the number of hours to be spent in concurrent,
10.19
10.20
10.21
10.22
10.23
10.24
10.25
10.26
10.27
10.28
10.29
10.30
10.31
10.32
10.33
10.34
10.35subdivision 2, paragraph (e), and 178.044, as applicable;
11.1
11.2
11.3
11.4
11.5
11.6
11.7to be provided to the apprentice;
11.8
11.9
11.10
11.11
11.12
11.13
11.14
11.15
11.16(7) a statement incorporating as part of the agreement the registered standards of
11.17the apprenticeship program on the date of the agreement and as they may be amended
11.18during the period of the agreement;
11.19(8) a statement that the apprentice will be accorded equal opportunity in all phases
11.20of apprenticeship employment and training, without discrimination due to race, color,
11.21creed, religion, national origin, sex, sexual orientation, marital status, physical or mental
11.22disability, receipt of public assistance, or age; and
11.23
11.24the
11.25EFFECTIVE DATE.This section is effective January 1, 2015.
11.26 Sec. 10. Minnesota Statutes 2012, section 178.09, is amended to read:
11.27178.09 INVESTIGATIONS
11.28APPRENTICESHIP AGREEMENTS.
11.29 Subdivision 1. Complaint. Upon the complaint of any interested person or upon the
11.30
11.31there has been a violation of the terms of an apprenticeship agreement made under this
11.32chapter. Complaints must be made in writing within 60 days of the events giving rise to the
11.33complaint and must set forth the specific matters complained of together with relevant facts
11.34and circumstances. Copies of pertinent documents and correspondence must accompany
12.1the complaint. The
12.2that investigation and determination. All such proceedings shall be on a fair and impartial
12.3basis
12.4 Subd. 2. Determination; appeal. Within 90 days after the receipt of a complaint,
12.5the division must issue a determination. The determination of the
12.6be filed with the commissioner and written notice shall be served on all parties affected
12.7by it. Any person aggrieved by any determination or action of the director may appeal
12.8to the commissioner. If no appeal is filed with the commissioner within ten days of the
12.9date of service, the
12.10commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing
12.11board to be composed of three members of the Apprenticeship Advisory Board appointed
12.12under section
12.13representative being a member of an employee organization, and one member representing
12.14the general public. The board shall hold a hearing on the appeal after due notice to the
12.15interested parties and shall submit to the commissioner findings of fact and a recommended
12.16decision accompanied by a memorandum of the reasons for it. Within 30 days after
12.17submission, the commissioner may adopt the recommended decision of the board, or
12.18disregard the recommended decision of the board and prepare a decision based on the
12.19findings of fact and accompanied by a memorandum of reasons for that decision. Written
12.20notice of the commissioner's determination and order shall be served on all parties affected
12.21by it. Any person aggrieved
12.22
12.23
12.24
12.25
12.26
12.27
12.28
12.29
12.30
12.31
12.32
12.3314.68 in the same manner that a person aggrieved by a final decision in a contested case is
12.34entitled to judicial review. The commissioner's determination and order under this section
12.35shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.
13.1 Subd. 3. Service. Service under this chapter may be by certified first class mail,
13.2personal service, or in accordance with any consent to service filed with the commissioner.
13.3Service by mail shall be accomplished in the manner provided in Minnesota Rules, part
13.41400.5550, subpart 2. Personal service shall be accomplished in the manner provided in
13.5Minnesota Rules, part 1400.5550, subpart 3.
13.6EFFECTIVE DATE.This section is effective January 1, 2015.
13.7 Sec. 11. [178.091] INVESTIGATIONS AND ENFORCEMENT;
13.8APPRENTICESHIP PROGRAMS AND STANDARDS.
13.9 Subdivision 1. Investigations. In order to carry out the purposes of this chapter,
13.10the commissioner may investigate registered apprenticeship programs and applicants
13.11for program registration to determine whether there are any grounds for deregistration
13.12of a registered program or for the denial of an application. Persons requested by the
13.13commissioner to provide information or produce documents shall respond within 30 days
13.14of the commissioner's service of the request.
13.15 Subd. 2. Grounds. (a) The commissioner may deregister a registered apprenticeship
13.16program or deny an application for registration if:
13.17(1) the program does not comply with any requirement of Code of Federal
13.18Regulations, title 29, part 29 or 32, this chapter, or any rule adopted pursuant to section
13.19178.041;
13.20(2) the program does not have at least one registered apprentice in each trade or
13.21occupation, except for the following specified periods of time:
13.22(i) within the first 30 days after the date a program is registered; or
13.23(ii) within one year of the date that a program graduates an apprentice in a trade or
13.24occupation and the date of registration for the next apprentice in that trade or occupation; or
13.25(3) the program is not conducted, operated, or administered in accordance with
13.26the program's registered standards or with the requirements of this chapter, including
13.27but not limited to:
13.28(i) failure to provide on-the-job learning;
13.29(ii) failure to provide related instruction;
13.30(iii) failure of an employer to pay the apprentice a progressively increasing schedule
13.31of wages consistent with the apprentice's skills acquired; or
13.32(iv) persistent and significant failure to perform successfully.
13.33(b) The commissioner may deregister an apprenticeship program at the written
13.34request of the sponsor in a manner consistent with the provisions of Code of Federal
13.35Regulations, title 29, part 29, section 29.8(a).
14.1 Subd. 3. Reinstatement. If the commissioner deregisters a registered apprenticeship
14.2program, the sponsor may request reinstatement not before one year after the effective
14.3date of the deregistration. The commissioner may, as a condition of reinstatement, require
14.4the sponsor to comply with reasonable conditions the commissioner considers necessary
14.5to effectuate the purposes of this chapter.
14.6 Subd. 4. Orders; hearings related to orders. (a) If the commissioner determines
14.7that a registered apprenticeship program should be deregistered or that an application for
14.8registration should be denied, the commissioner shall issue to and serve on the sponsor an
14.9order deregistering the program's registration or denying the application for registration.
14.10(b) An order issued under this subdivision must specify:
14.11(1) the deficiency and the required remedy or corrective action;
14.12(2) the time period to effectuate the required remedy or corrective action, which
14.13shall be no more than 90 days; and
14.14(3) any other requirement consistent with Code of Federal Regulations, title 29,
14.15part 29, section 29.8(b).
14.16(c) The sponsor to whom the commissioner issues an order under this subdivision
14.17may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.
14.18EFFECTIVE DATE.This section is effective January 1, 2015.
14.19 Sec. 12. Minnesota Statutes 2012, section 178.10, is amended to read:
14.20178.10 LIMITATION.
14.21(a) The provisions of this chapter shall have no application to those
14.22 individuals who are apprenticed by the commissioner of corrections pursuant to sections
14.24(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:
14.25(1) any apprenticeship provision in any collective bargaining agreement between
14.26employers and employees establishing higher apprenticeship standards; or
14.27(2) any special provision for veterans, minority persons, or women, in the standards,
14.28apprentice qualifications, or operation of the program or in the apprenticeship agreement
14.29which is not otherwise prohibited by law.
14.30EFFECTIVE DATE.This section is effective January 1, 2015.
14.31 Sec. 13. Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read:
14.32 Subd. 4. Independent contractor. (a) An individual is an independent contractor
14.33and not an employee of the person for whom the individual is performing services in the
15.1course of the person's trade, business, profession, or occupation only if the individual
15.2
15.3
15.4(1) maintains a separate business with the individual's own office, equipment,
15.5materials, and other facilities;
15.6(2)(i) holds or has applied for a federal employer identification number or (ii) has
15.7filed business or self-employment income tax returns with the federal Internal Revenue
15.8Service if the individual has performed services in the previous year;
15.9(3) is operating under contract to perform the specific services for the person
15.10for specific amounts of money and under which the individual controls the means of
15.11performing the services;
15.12(4) is incurring the main expenses related to the services that the individual is
15.13performing for the person under the contract;
15.14(5) is responsible for the satisfactory completion of the services that the individual
15.15has contracted to perform for the person and is liable for a failure to complete the services;
15.16(6) receives compensation from the person for the services performed under the
15.17contract on a commission or per-job or competitive bid basis and not on any other basis;
15.18(7) may realize a profit or suffer a loss under the contract to perform services for
15.19the person;
15.20(8) has continuing or recurring business liabilities or obligations; and
15.21(9) the success or failure of the individual's business depends on the relationship of
15.22business receipts to expenditures.
15.23An individual who is not registered, if required by section 326B.701, is presumed to
15.24be an employee of a person for whom the individual performs services in the course of
15.25the person's trade, business, profession, or occupation. The person for whom the services
15.26were performed may rebut this presumption by showing that the unregistered individual
15.27met all nine factors in this paragraph at the time the services were performed.
15.28(b) If an individual is an owner or partial owner of a business entity, the individual is
15.29an employee of the person for whom the individual is performing services in the course
15.30of the person's trade, business, profession, or occupation, and is not an employee of the
15.31business entity in which the individual has an ownership interest, unless:
15.32(1) the business entity meets the nine factors in paragraph (a);
15.33(2) invoices and payments are
15.34(3) the business entity is registered with the secretary of state, if required
15.35
15.36
16.1If the business entity in which the individual has an ownership interest is not
16.2registered, if required by section 326B.701, the individual is presumed to be an employee
16.3of a person for whom the individual performs services and not an employee of the business
16.4entity in which the individual has an ownership interest. The person for whom the services
16.5were performed may rebut the presumption by showing that the business entity met the
16.6requirements of clauses (1) to (3) at the time the services were performed.
16.7EFFECTIVE DATE.This section is effective the day following final enactment.
16.8 Sec. 14. Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read:
16.9 Subd. 4a. Applicability; registration
16.10
16.11
16.12construction or improvement services as described in subdivision 2 must register with the
16.13commissioner as provided in this section. The purpose of
16.14
16.15 the Department of Labor and Industry, the Department of Employment and Economic
16.16Development, and the Department of Revenue to enforce laws related to misclassification
16.17of employees.
16.18
16.19
16.20
16.21
16.22
16.23(b) Except as provided in paragraph (c), any person who performs construction
16.24services in the state on or after September 15, 2012, must register with the commissioner
16.25as provided in
16.26another person. The requirements for registration under
16.27 are not a substitute for, and do not relieve a person from complying with, any other law
16.28requiring that the person be licensed, registered, or certified.
16.29(c) The registration requirements in
16.30(1) a person who, at the time the person is performing the construction services,
16.31holds a current license, certificate, or registration under chapter 299M or 326B;
16.32(2) a person who holds a current independent contractor exemption certificate
16.33issued under this section that is in effect on September 15, 2012, except that the person
16.34must register under
16.35expires, is revoked, or is canceled;
17.1(3) a person who has given a bond to the state under section
17.2(4) an employee of the person performing the construction services, if the person
17.3was in compliance with laws related to employment of the individual at the time the
17.4construction services were performed;
17.5(5) an architect or professional engineer engaging in professional practice as defined
17.6in section
17.7(6) a school district or technical college governed under chapter 136F;
17.8(7) a person providing construction services on a volunteer basis, including but not
17.9limited to Habitat for Humanity and Builders Outreach Foundation, and their individual
17.10volunteers when engaged in activities on their behalf; or
17.11(8) a person exempt from licensing under section
17.12EFFECTIVE DATE.This section is effective the day following final enactment.
17.13 Sec. 15. Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read:
17.14 Subd. 5. Registration application. (a) Persons required to register under
17.15
17.16the commissioner, a complete application according to paragraphs (b) to (d).
17.17 (b) A complete application must include all of the following information about any
17.18individual who is registering as an individual or a sole proprietor, or who owns 25 percent
17.19or more of a business entity being registered:
17.20 (1) the individual's full legal name and title at the applicant's business;
17.21 (2) the individual's business address and telephone number;
17.22 (3) the percentage of the applicant's business owned by the individual; and
17.23 (4) the individual's Social Security number.
17.24(c) A complete application must also include the following information:
17.25(1) the applicant's legal name; assumed name filed with the secretary of state, if any;
17.26designated business address; physical address; telephone number; and e-mail address;
17.27(2) the applicant's Minnesota tax identification number, if one is required or has
17.28been issued;
17.29(3) the applicant's federal employer identification number, if one is required or
17.30has been issued;
17.31(4) evidence of the active status of the applicant's business filings with the secretary
17.32of state, if one is required or has been issued;
17.33(5) whether the applicant has any employees at the time the application is filed;
17.34(6) the names of all other persons with an ownership interest in the business entity
17.35who are not identified in paragraph (b), and the percentage of the interest owned by each
18.1person, except that the names of shareholders with less than ten percent ownership in a
18.2publicly traded corporation need not be provided;
18.3(7) information documenting compliance with workers' compensation and
18.4unemployment insurance laws;
18.5(8) a certification that the person signing the application has: reviewed it; determined
18.6that the information provided is true and accurate; and determined that the person signing
18.7is authorized to sign and file the application as an agent of the applicant. The name of the
18.8person signing, entered on an electronic application, shall constitute a valid signature of
18.9the agent on behalf of the applicant; and
18.10(9) a signed authorization for the Department of Labor and Industry to verify the
18.11information provided on or with the application.
18.12(d) A registered person must notify the commissioner within 15 days after there is a
18.13change in any of the information on the application as approved. This notification must
18.14be provided electronically in the manner prescribed by the commissioner. However, if
18.15the business entity structure, legal form of the business entity, or business ownership has
18.16changed, the person must submit a new registration application and registration fee, if
18.17any, for the new business entity.
18.18(e) The registered person must remain registered while providing construction
18.19services for another person. The provisions of sections
18.20326B.095, and
18.21registration shall not provide construction services for another person if registration is
18.22required under this section. Registration application and expiration time frames are as
18.23follows:
18.24(1) all registrations issued on or before June 30, 2015, expire on June 30, 2015;
18.25(2) all registrations issued after June 30, 2015, expire on the following June 30
18.26of each odd-numbered year; and
18.27(3) a person may submit a registration or renewal application starting April 1 of the
18.28year the registration expires. If a renewal application is submitted later than May 1 of
18.29the expiration year, registration may expire before the department has issued or denied
18.30the registration.
18.31EFFECTIVE DATE.This section is effective the day following final enactment.
18.32 Sec. 16. Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read:
18.33 Subd. 7. Prohibited activities related to independent contractor status. (a) The
18.34prohibited activities in this subdivision are in addition to those prohibited in sections
19.1 (b) An individual shall not hold himself or herself out as an independent contractor
19.2unless the individual meets the requirements of subdivision 4.
19.3 (c) A person who provides construction services in the course of the person's trade,
19.4business, occupation, or profession shall not:
19.5 (1) require an individual through coercion, misrepresentation, or fraudulent means to
19.6adopt independent contractor status or form a business entity;
19.7 (2) knowingly misrepresent or misclassify an individual as an independent
19.8contractor
19.9 Subd. 7a. Prohibited activities related to registration. (a) The prohibited activities
19.10in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.
19.11(b) A person who provides construction services in the course of the person's trade,
19.12business, occupation, or profession shall not:
19.13
19.14being registered if required by
19.15
19.16the other person is not registered if required by subdivision 4a. All payments to an
19.17unregistered person for construction services on a single project site shall be considered a
19.18single violation. It is not a violation of this clause:
19.19(i) for a person to contract with or pay an unregistered person if the unregistered
19.20person was registered at the time the contract for construction services was entered into; or
19.21(ii) for a homeowner or business to contract with or pay an unregistered person if
19.22the homeowner or business is not in the trade, business, profession, or occupation of
19.23performing building construction or improvement services; or
19.24
19.25person. This clause applies only to violations of this paragraph.
19.26EFFECTIVE DATE.This section is effective the day following final enactment.
19.27 Sec. 17. Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read:
19.28 Subd. 8a. Enforcement; remedies; and penalties. (a) Notwithstanding the
19.29maximum penalty amount in section
19.30penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if
19.31the person registers within 30 days of the date of the penalty order.
19.32(b) The penalty for contracting with or paying an unregistered person to perform
19.33construction services in violation of subdivision 7a, paragraph (b), clause (2), shall be as
19.34provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive
19.35the penalty for the first violation.
20.1EFFECTIVE DATE.This section is effective the day following final enactment.
20.2 Sec. 18. Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read:
20.3 Subd. 2. Public buildings and state-licensed facilities; administration by
20.4commissioner. Unless the commissioner has entered into an agreement under subdivision
20.52a or 2b, the commissioner shall administer and enforce the State Building Code as a
20.6municipality with respect to public buildings and state-licensed facilities in the state.
20.7The commissioner shall establish appropriate permit, plan review, inspection fees, and
20.8surcharges for public buildings and state-licensed facilities.
20.9
20.10
20.11
20.12
20.13
20.14
20.15
20.16
20.17
20.18
20.19
20.20
20.21
20.22
20.23
20.24
20.25
20.26
20.27
20.28 Sec. 19. Minnesota Statutes 2012, section 326B.106, is amended by adding a
20.29subdivision to read:
20.30 Subd. 2a. Public buildings and state-licensed facilities; municipal agreement
20.31for all building projects. (a) The commissioner shall enter into an agreement with a
20.32municipality other than the state for plan review, inspection, code administration, and
20.33code enforcement on public buildings and state-licensed facilities in the jurisdiction if
20.34the municipality requests to provide those services and the commissioner determines
21.1that the municipality has enough adequately trained and qualified inspectors to provide
21.2those services. In determining whether a municipality has enough adequately trained and
21.3qualified inspectors to provide the service, the commissioner must consider all inspectors
21.4who are employed by the municipality, are under contract with the municipality to provide
21.5inspection services, or are obligated to provide inspection services to the municipality
21.6under any other lawful agreement.
21.7(b) The criteria used to make this determination shall be provided in writing to
21.8the municipality requesting an agreement.
21.9(c) If the commissioner determines that the municipality lacks enough adequately
21.10trained and qualified inspectors to provide the required services, a written explanation of
21.11the deficiencies shall be provided to the municipality.
21.12(d) The municipality shall be given an opportunity to remedy any deficiencies
21.13and request reconsideration of the commissioner's determination. A request for
21.14reconsideration must be in writing and accompanied by substantiating documentation. A
21.15request for reconsideration must be received by the commissioner within 90 days of the
21.16determination explanation. The commissioner shall review the information and issue a
21.17final determination to the municipality within 30 days of the request.
21.18(e) A municipality aggrieved by a final decision of the commissioner to not enter into
21.19an agreement may appeal to be heard as a contested case in accordance with chapter 14.
21.20 Sec. 20. Minnesota Statutes 2012, section 326B.106, is amended by adding a
21.21subdivision to read:
21.22 Subd. 2b. Public buildings and state-licensed facilities; municipal agreement
21.23for certain building projects. The commissioner shall enter into an agreement with a
21.24municipality other than the state for inspection, code administration, and code enforcement
21.25of reserved projects occurring on public buildings and state-licensed facilities in its
21.26jurisdiction if the municipality has a designated building official as required by section
21.27326B.133 and requests to provide those services.
21.28For purposes of this subdivision, "reserved projects" includes the following:
21.29(1) roof covering replacement that does not add roof load;
21.30(2) towers requiring special inspection;
21.31(3) single-level storage buildings not exceeding 5,000 square feet;
21.32(4) exterior maintenance work, including replacement of siding, windows, and doors;
21.33(5) HVAC unit replacement that does not add roof load or ventilation capacity;
21.34(6) accessibility upgrades not involving building additions or structural alterations;
22.1(7) remodeling that does not change the building's occupancy, structural system, exit
22.2access or discharge pattern, or mechanical load; and
22.3(8) other projects determined to be reserved by the commissioner.
22.4 Sec. 21. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.5subdivision to read:
22.6 Subd. 2c. Municipal fees. Municipalities other than the state having an agreement
22.7under subdivision 2a with the commissioner for code administration and enforcement
22.8service for public buildings and state-licensed facilities or inspecting under authority of
22.9subdivision 2b shall charge their customary fees, including surcharge, to be paid directly
22.10to the jurisdiction by the applicant seeking authorization to construct a public building or
22.11a state-licensed facility.
22.12 Sec. 22. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.13subdivision to read:
22.14 Subd. 2d. Public buildings and state-licensed facilities; municipal obligation.
22.15An agreement with the commissioner under subdivision 2a or 2b must require the
22.16municipality to attend to applicable aspects of code administration and enforcement as
22.17described in the agreement and established by rule.
22.18 Sec. 23. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.19subdivision to read:
22.20 Subd. 2e. Public buildings and state-licensed facilities; applicable code.
22.21Administration and enforcement in a municipality under subdivisions 2a and 2b must
22.22apply any optional provisions of the State Building Code adopted by the municipality. A
22.23municipality adopting any optional code provision shall notify the state building official
22.24within 30 days of its adoption.
22.25 Sec. 24. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.26subdivision to read:
22.27 Subd. 2f. Natural disasters. The commissioner may direct the state building
22.28official to assist a community that has been affected by a natural disaster with building
22.29evaluation and other activities related to building codes.
22.30 Sec. 25. Minnesota Statutes 2012, section 326B.106, is amended by adding a
22.31subdivision to read:
23.1 Subd. 2g. Elevators. The commissioner shall administer and enforce the provisions
23.2of the code relating to elevators statewide, except as provided for under section
23.3subdivision 4
23.4 Sec. 26. [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION.
23.5The following definition applies to this section: "business entity" means a person
23.6other than an individual or a sole proprietor.
23.7EFFECTIVE DATE.This section is effective the day following final enactment.
23.8 Sec. 27. Minnesota Statutes 2012, section 326B.988, is amended to read:
23.9326B.988 EXCEPTIONS.
23.10 (a) The provisions of sections
23.11 (1) boilers and pressure vessels in buildings occupied solely for residence purposes
23.12with accommodations for not more than five families;
23.13 (2) railroad locomotives operated by railroad companies for transportation purposes;
23.14 (3) air tanks installed on the right-of-way of railroads and used directly in the
23.15operation of trains;
23.16 (4) boilers and pressure vessels under the direct jurisdiction of the United States;
23.17 (5) unfired pressure vessels having an internal or external working pressure not
23.18exceeding 15 psig with no limit on size;
23.19 (6) pressure vessels used for storage of compressed air not exceeding five cubic feet
23.20in volume and equipped with an ASME code stamped safety valve set at a maximum of
23.21100 psig;
23.22 (7) pressure vessels having an inside diameter not exceeding six inches;
23.23 (8) every vessel that contains water under pressure, including those containing air
23.24that serves only as a cushion, whose design pressure does not exceed 300 psig and whose
23.25design temperature does not exceed 210 degrees Fahrenheit;
23.26 (9) boiler or pressure vessels located on farms used solely for agricultural or
23.27horticultural purposes; for purposes of this section, boilers used for mint oil extraction
23.28are considered used for agricultural or horticultural purposes, provided that the owner or
23.29lessee complies with the inspection requirements contained in section
23.30 (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
23.31 (11) unfired pressure vessels in petroleum refineries;
23.32 (12) an air tank or pressure vessel which is an integral part of a passenger motor
23.33bus, truck, or trailer;
24.1 (13) hot water heating and other hot liquid boilers not exceeding a heat input of
24.2750,000 BTU per hour;
24.3 (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000
24.4BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity
24.5of 120 gallons, or a pressure of 160 psig;
24.6 (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
24.7 (16) pressure vessels operated full of water or other liquid not materially more
24.8hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees
24.9Fahrenheit or a pressure of 200 psig;
24.10 (17) steam-powered turbines at papermaking facilities which are powered by steam
24.11generated by steam facilities at a remote location;
24.12 (18) manually fired boilers for model locomotive, boat, tractor, stationary engine,
24.13or antique motor vehicles constructed or maintained only as a hobby for exhibition,
24.14educational or historical purposes and not for commercial use, if the boilers have an
24.15inside diameter of 12 inches or less, or a grate area of two square feet or less, and are
24.16equipped with an ASME stamped safety valve of adequate size, a water level indicator,
24.17and a pressure gauge;
24.18(19) any pressure vessel used as an integral part of an electrical circuit breaker;
24.19(20) pressure vessels used for the storage of refrigerant if they are built to ASME
24.20code specifications, registered with the national board, and equipped with an ASME
24.21code-stamped pressure-relieving device set no higher than the maximum allowable
24.22working pressure of the vessel. This does not include pressure vessels used in ammonia
24.23refrigeration systems;
24.24(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide,
24.25argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME
24.26or Minnesota Department of Transportation specifications and equipped with an ASME
24.27code-stamped pressure-relieving device. The owner of the vessels shall perform annual
24.28visual inspections and planned maintenance on these vessels to ensure vessel integrity;
24.29(22) pressure vessels used for the storage of compressed air for self-contained
24.30breathing apparatuses;
24.31(23) hot water heating or other hot liquid boilers vented directly to the atmosphere;
24.32and
24.33(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic
24.34feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or
24.35less.
24.36 (b) An engineer's license is not required for hot water supply boilers.
25.1 (c) An engineer's license and annual inspection by the department is not required
25.2for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not
25.3exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
25.4 (d) Electric boilers not exceeding a maximum working pressure of 50 psig,
25.5maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure
25.6vessels and shall not require an engineer license to operate.
25.7(e) Sawmills, located in a county with a population of less than 8,000 according to
25.8the last federal census and that utilize steam for the drying of lumber, are not required to
25.9meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part
25.105225.1180, only if all of the following conditions are met:
25.11(1) the owner complies with the inspection requirements under section 326B.958,
25.12and the licensing requirements under section 326B.972; and
25.13(2) the boiler:
25.14(i) is equipped with electronic control systems that are remotely operated but which
25.15require on site manual reset of system faults;
25.16(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
25.17(iii) has automatic safety mechanisms built into the remote monitoring systems that
25.18send an alarm upon detection of a fault condition, and an on site alarm that will sound
25.19upon detection of a fault condition and which may be heard at a distance of 500 feet;
25.20(iv) has a water treatment program that is supervised by a third party water treatment
25.21company; and
25.22(v) is attended on site by a licensed boiler operator at least two times in a 24-hour
25.23period. If the boiler is not attended more than twice in a 24-hour period, the period
25.24between checks must not be less than eight hours.
25.25This paragraph expires August 1, 2016.
25.26 Sec. 28. PLUMBING AT RESORTS; WORKGROUP.
25.27The Department of Labor and Industry, in consultation with the Department of
25.28Health, must convene a workgroup to provide recommendations to the legislature on the
25.29requirements for plumbing at resorts classified as either class 1c or class 4c property under
25.30Minnesota Statutes, section 273.13, and licensed by the Department of Health under
25.31Minnesota Statutes, section 157.16. The Department must report its recommendations to
25.32the legislature not later than January 1, 2015.
25.33 Sec. 29. HIGH PRESSURE BOILER RULES AND RECOMMENDATIONS;
25.34APPROPRIATION.
26.1$100,000 in fiscal year 2015 is appropriated from the general fund to the
26.2commissioner of labor and industry to update and modernize rules related to high pressure
26.3boilers. The commissioner must make recommendations by October 1, 2015, to the
26.4committees of the house of representatives and senate with jurisdiction over construction
26.5codes and licensing on changes related to boilers that operate at levels of 15 PSI or higher.
26.6This is a onetime appropriation.
26.7 Sec. 30. REVISOR'S INSTRUCTION.
26.8The revisor of statutes shall replace the phrase "Division of Voluntary
26.9Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.
26.10EFFECTIVE DATE.This section is effective January 1, 2015.
26.11 Sec. 31. REVISOR'S INSTRUCTION.
26.12The revisor of statutes shall renumber the citations in column A with the citations
26.13in column B. The revisor shall correct any cross-references required because of the
26.14renumbering and may make necessary grammatical and technical changes, including
26.15changes to sentence structure, to preserve the meaning of the text.
26.27EFFECTIVE DATE.This section is effective the day following final enactment.
26.28 Sec. 32. REPEALER.
26.29(a) Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and
26.30178.08, are repealed.
26.31(b) Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5,
26.327, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, are repealed.
26.33EFFECTIVE DATE.This section is effective January 1, 2015.
