Bill Text: MN SF2124 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Apprenticeship program federal conformity changes

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2014-03-13 - Second reading [SF2124 Detail]

Download: Minnesota-2013-SF2124-Engrossed.html

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A bill for an act

relating to trades; making federal conformity changes to the apprenticeship
program;amending Minnesota Statutes 2012, sections 178.02; 178.03;
178.041, subdivision 2; 178.07; 178.09; 178.10; proposing coding for new
law in Minnesota Statutes, chapter 178; repealing Minnesota Statutes 2012,
sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts
5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14,
15; 5200.0340; 5200.0360; 5200.0390.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. [178.011] DEFINITIONS.
    Subdivision 1. Scope. The terms defined in this section have the meanings given
and apply to this chapter.
    Subd. 2. Apprentice. "Apprentice" means a worker who is at least 16 years of
age who is employed to learn an apprenticeable trade or occupation in a registered
apprenticeship program under this chapter.
    Subd. 3. Apprenticeship Advisory Board. "Apprenticeship Advisory Board" or
"board" means the Apprenticeship Advisory Board established under section 178.02 and
as an advisory State Apprenticeship Council as defined in Code of Federal Regulations,
title 29, section 29.2.
    Subd. 4. Apprenticeship program. "Apprenticeship program" means a program
registered under this chapter that includes standards containing all terms and conditions
for the qualification, recruitment, selection, employment, and training of apprentices,
as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written
apprenticeship agreement.
    Subd. 5. Commissioner. "Commissioner" means the commissioner of labor and
industry or a duly designated representative of the commissioner who is an employee
of the department.
    Subd. 6. Department. "Department" means the Department of Labor and Industry
established under section 175.001.
    Subd. 7. Division. "Division" means the department's Labor Standards and
Apprenticeship Division, established under sections 175.16 and 178.03, and the State
Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29,
section 29.2.
    Subd. 8. Employer. "Employer" means any person or organization employing
an apprentice whether or not the person or organization is a party to an apprenticeship
agreement with the apprentice.
    Subd. 9. Journeyworker. "Journeyworker" means a person who has attained a level
of skill, abilities, and competencies recognized within an industry as having mastered the
skills and competencies required for the trade or occupation.
    Subd. 10. Registered apprenticeship agreement. "Registered apprenticeship
agreement" or "apprenticeship agreement" means a written agreement, complying with
section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is
a minor, the minor's parent or guardian, which contains the terms and conditions of the
employment and training of the apprentice.
    Subd. 11. Related instruction. "Related instruction" means an organized and
systematic form of instruction designed to provide the apprentice with the knowledge of
the theoretical and technical subjects related to the apprentice's trade or occupation. The
instruction may be given in a classroom through trade, occupational, or industrial courses
or, when of equivalent value, by correspondence, electronic media, or other forms of
self-study approved by the commissioner.
    Subd. 12. Sponsor. "Sponsor" means an employer, employer association, or
apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29,
section 29.2, that operates an apprenticeship program and in whose name the program is
or is to be registered or approved.

    Sec. 2. [178.012] UNIFORMITY WITH FEDERAL LAW.
    Subdivision 1. Apprenticeship rules. Federal regulations governing apprenticeship
in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29,
sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to
amendment by this chapter or by rule under section 178.041.
    Subd. 2. State Apprenticeship Agency. The commissioner shall take all necessary
steps as permitted by law to obtain and maintain the status of the division as a State
Apprenticeship Agency recognized by the United States Department of Labor under Code
of Federal Regulations, title 29, part 29, section 29.13.

    Sec. 3. Minnesota Statutes 2012, section 178.02, is amended to read:
178.02 APPRENTICESHIP ADVISORY BOARD.
    Subdivision 1. Members. The commissioner of labor and industry, hereinafter
called the commissioner, shall appoint an Apprenticeship Board, hereinafter referred
to as the board, composed of three representatives each from employer and employee
organizations, and two representatives of the general public. The director A designee of
the commissioner of education responsible for career and technical education or designee
shall be an ex officio member of the board and shall serve in an advisory capacity only.
    Subd. 2. Terms. The board shall not expire. The terms, compensation, and removal
of appointed members shall be as provided in section 15.059.
    Subd. 4. Duties. The board shall meet at the call of the commissioner and
shall advise the commissioner about matters relating to this chapter. It shall propose
occupational classifications for apprenticeship programs; propose minimum standards for
apprenticeship programs and agreements; and advise on the establishment of such policies,
procedures, and rules as the board or commissioner deems necessary in implementing
the intent of this chapter.

    Sec. 4. Minnesota Statutes 2012, section 178.03, is amended to read:
178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP.
    Subdivision 1. Establishment of division. There is established a Division of Labor
Standards and Apprenticeship in the Department of Labor and Industry. This division
shall be administered by a director, and be under the supervision of the commissioner of
labor and industry, hereinafter referred to as the commissioner.
    Subd. 2. Director of labor standards and apprenticeship. The commissioner
shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter
referred to as the director, and may appoint and employ such clerical, technical, and
professional help as is necessary to accomplish the purposes of this chapter. The director
and division staff shall be appointed and shall serve in the classified service pursuant to
civil service law and rules.
    Subd. 3. Duties and functions. The director, under the supervision of the
commissioner, and with the advice and consultation of the Apprenticeship Board, is
authorized: to administer the provisions of this chapter; to promote apprenticeship and
other forms of on-the-job learning; to establish, in cooperation and consultation with the
Apprenticeship Board and with the apprenticeship committees, conditions, training, and
learning standards for the approval of apprenticeship programs and agreements, which
conditions and standards shall in no case be lower than those (1) prescribed by this chapter,
and (2) established under The division shall be administered as prescribed by this chapter
and in accordance with Code of Federal Regulations, title 29, part 29; to promote equal
employment opportunity in apprenticeship and other on-the-job learning and to establish
a Minnesota plan for equal employment opportunity in apprenticeship which shall be
consistent with standards established under Code of Federal Regulations, title 29, part 30,
as amended; to issue certificates of registration to sponsors of approved apprenticeship
programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion
that approval is for the best interest of the apprentice, any apprenticeship agreement which
meets the standards established hereunder; to terminate any apprenticeship agreement in
accordance with the provisions of such agreement; to keep a record of apprenticeship
agreements and their disposition; to issue certificates of completion of apprenticeship;
and to perform such other duties as the commissioner deems necessary to carry out the
intent of this chapter; provided, that the administration and supervision of supplementary
instruction in related subjects for apprentices; coordination of instruction on a concurrent
basis with job experiences, and the selection and training of teachers and coordinators
for such instruction shall be the function of state and local boards responsible for
vocational education. The director division shall have the authority to make wage
determinations applicable to the graduated schedule of wages and journeyworker wage
rate for apprenticeship agreements, giving consideration to the existing wage rates
prevailing throughout the state, except that no wage determination by the director shall
alter an existing wage provision for apprentices or journeyworkers that is contained in a
bargaining agreement in effect between an employer and an organization of employees,
nor shall the director make any determination for the beginning rate for an apprentice that
is below the wage minimum established by federal or state law.
    Subd. 4. Reciprocity approval. The director commissioner, if requested by a
sponsoring entity program sponsor, shall grant reciprocity approval to apprentices,
apprenticeship programs of employers and unions who jointly form a sponsoring entity
on a multistate basis in other than the building construction industry if such programs
are in conformity with this chapter and have been registered in compliance with Code
of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized
by or registered with the United States Department of Labor, Office of Apprenticeship,
when such approval is necessary for federal purposes under Code of Federal Regulations,
title 29, section 29.13(a) or 29.13(b)(7), and standards that are registered in other states.
Program sponsors seeking reciprocal approval must meet the requirements of this chapter
including the wage and hour provisions and apprentice ratio standards.

    Sec. 5. [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.
    Subdivision 1. Application. To apply for the registration of an apprenticeship
program, a sponsor shall submit a completed application to the division on a form provided
by the commissioner, which shall include standards of apprenticeship that comply with the
requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.
    Subd. 2. Provisional approval. The division shall grant a provisional approval
period of one year to an applicant demonstrating that the standards submitted meet the
requirements of this chapter. The division may review each program granted provisional
approval for quality and for conformity with the requirements of this section and section
178.036 at any time, but not less than biannually, during the provisional approval period.
After review:
(1) a program that conforms with the requirements of this chapter:
(i) may be approved; or
(ii) may continue to be provisionally approved through the first full training cycle; and
(2) a program not in operation or not conforming with the requirements of this
chapter during the provisional approval period shall be deregistered.
The division shall inform the applicant of the results of its review in writing at least 30
days prior to the expiration of the provisional approval period.
    Subd. 3. Review. The division shall review all programs for quality and for
conformity with the requirements of this chapter at the end of the first full training
cycle. Subsequent review of a registered program must be conducted at least annually.
Programs not in operation or not conforming to this chapter at the time of review may be
recommended for deregistration.
    Subd. 4. Program modification. To apply for the modification of or change to
a registered program, a sponsor shall submit a written request for modification to the
division. The division shall approve or disapprove a modification request within 90 days
from the date of receipt. If approved, the modification or change must be recorded and
acknowledged within 90 days of its approval as an amendment to the registered program.
If not approved, the division shall notify the sponsor in writing of the disapproval and the
reasons for the disapproval. The division may provide technical assistance to a sponsor
seeking to modify or change a registered program.
    Subd. 5. Notice. When an application is submitted under subdivision 1 by an
employer or employers' association, and where the standards, collective bargaining
agreement, or other instrument provides for participation by a union in any manner in the
operation of the substantive matters of the apprenticeship program, and the participation
is exercised, a written acknowledgment of the union's agreement or a written statement
specifying that the union has no objection to the registration is required. Where no union
participation is evidenced and practiced, the employer or employers' association shall
simultaneously furnish to the union, if any, which functions as the collective bargaining
agent of the employees to be trained, a copy of its application for registration and the
apprenticeship program. The commissioner shall provide a reasonable time of not less
than 30 days nor more than 60 days for receipt of union comments, if any, before final
action on the application for registration is taken. Union comments must be submitted to
the division during the time period specified by the commissioner.
    Subd. 6. Certificate. Upon registration of a program, the commissioner shall issue a
certificate of registration to the sponsor. Within 30 days after the certificate is mailed or
otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of
at least one executed apprenticeship agreement.
    Subd. 7. Policy requirement. It must be the policy of the employer and sponsor
that the recruitment, selection, employment, and training of apprentices during their
apprenticeship must be without discrimination due to race, color, creed, religion, national
origin, sex, sexual orientation, marital status, physical or mental disability, receipt of
public assistance, or age. The employer and sponsor must take affirmative action to
provide equal opportunity in apprenticeship and must operate the apprenticeship program
as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota
plan for equal opportunity in apprenticeship.

    Sec. 6. [178.036] STANDARDS OF APPRENTICESHIP.
    Subdivision 1. Federal uniformity. Each program must have an organized, written
plan of program standards embodying the terms and conditions of employment, training,
and supervision of one or more apprentices in an apprenticeable trade or occupation, as
defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by
a sponsor and employer who has undertaken to carry out the apprentice training program.
The program standards must contain the provisions that address each item identified in
Code of Federal Regulations, title 29, part 29, section 29.5(b).
    Subd. 2. Standards. In addition to the requirements in subdivision 1, the program
standards must also contain provisions in compliance with paragraphs (a) to (j):
(a) Related instruction. A minimum of 144 hours of related instruction is required
in each training cycle. At least 50 hours of related safety instruction is required during the
term of apprenticeship. Time spent in related instruction cannot be considered as hours of
work as required by the job process schedule. Every apprenticeship instructor must meet
the Department of Education's requirements for a vocational-technical instructor or be a
subject matter expert, which is an individual such as a journeyworker, who is recognized
within an industry as having expertise in a specific trade or occupation.
(b) Job process schedule. Each time-based apprenticeship program must include
not less than 2,000 hours of reasonably continuous employment.
(c) Ratios. If the apprentice is covered by a collective bargaining agreement, the
employer must follow the provisions of the collective bargaining agreement regarding the
maximum number of apprentices to be employed at the work site for each journeyworker
employed at the same work site. In the absence of a collective bargaining agreement, for
the purposes of direct supervision and the safety and instruction of the apprentice, the
ratio shall be:
(1) one apprentice for the first journeyworker employed at the work site plus one
apprentice for each additional three journeyworkers employed at the work site;
(2) the work site ratio utilized by the majority of registered apprenticeship
agreements in the same trade or occupation; or
(3) a program-specific ratio that has been approved by the Apprenticeship Advisory
Board.
(d) Graduated schedule of wages. The graduated schedule of wages for an
apprenticeship program shall be calculated as a percentage of the journeyworker rate in
the majority of registered apprenticeship agreements in the same trade or occupation in the
state. If there are no registered apprenticeship agreements in the same trade or occupation,
the graduated schedule of wages may be determined by the sponsor.
(e) Probationary period. The standards must provide a period of probation of not
more than 500 hours of employment and instruction extending over not more than four
months, during which time the apprenticeship agreement shall be terminated by the director
upon written request of either party, and providing that after such probationary period the
apprenticeship agreement may be terminated by the director by mutual agreement of all
parties thereto, or terminated by the director for good and sufficient reason.
(f) Dispute resolution. The program standards must include a provision that
controversies or differences concerning the terms of the apprenticeship agreement which
cannot be resolved by the parties thereto, or which are not covered by a collective
bargaining agreement, may be submitted to the commissioner for determination as
provided for in section 178.09.
(g) Term of apprenticeship. The term of apprenticeship may be measured either
through the completion of at least 2,000 work hours of on-the-job training (time-based
approach), the attainment of competency (competency-based approach), or a blend of the
time-based and competency-based approaches (hybrid approach).
(h) Training cycle. The training cycle for related instruction must be designated in
hours, days, or months for each individual trade or occupation included in the standards.
(i) Responsibilities of the apprentice. An apprentice employed under the program
standards shall agree to be punctual and regular in attendance, and to endeavor to the best
of the apprentice's ability to perfect the required skills for the trade or occupation.
(j) Coordination of apprentices. The sponsor shall designate a qualified individual
as a coordinator of apprentices who shall:
(1) maintain an adequate record of progress in training each apprentice;
(2) be responsible for assuring that the requirements of the applicable learning
program are met during the prescribed training term; and
(3) perform other duties as may be assigned by the sponsor relative to the
development and operation of an effective program of apprenticeship.

    Sec. 7. Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read:
    Subd. 2. Chapter 14 applies. Rules, modifications, amendments, and repeals
thereof which may be issued by the commissioner under this section chapter shall be
adopted in accordance with chapter 14 and shall have the force and effect of law.

    Sec. 8. [178.044] DETERMINATION OF APPRENTICE WAGES.
    Subdivision 1. Maximum hours. The maximum number of hours of work per week
shall not exceed either the number prescribed by law or the customary regular number of
hours per week for the employees of the company by which the apprentice is employed.
Time spent in related and supplemental instruction for any apprentice shall not be included
in the maximum number of hours of work per workweek.
    Subd. 2. Overtime. An apprentice may be allowed to work overtime provided that
the overtime work does not conflict with related instruction course attendance. All time
in excess of the number of hours of work per week as specified in the apprenticeship
agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
be increased by the same percentage as the journeyworker's rate of pay for overtime is
increased in the same industry or establishment.
    Subd. 3. Journeyworker wage rate. If the apprentice is not covered by a collective
bargaining agreement, the journeyworker wage rate upon which the apprentice agreement
graduated schedule of wages is calculated shall be:
(1) the most current Minnesota state prevailing wage rate determination for the
same trade or occupation in the county in which the apprentice's employer is located. If
an apprenticeship agreement entered into after January 1, 2015, does not specify fringe
benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated
must be the total rate listed in the wage determination; or
(2) if there is no Minnesota prevailing wage rate determination for the same trade or
occupation in the county in which the apprentice's employer is located, the journeyworker
wage may be determined by the sponsor with the approval of the division.

    Sec. 9. Minnesota Statutes 2012, section 178.07, is amended to read:
178.07 REGISTERED APPRENTICESHIP AGREEMENTS.
    Subdivision 1. Approval required. All terminations, cancellations, and transfers of
apprenticeship agreements shall be approved by the division in writing. The division must
be notified in writing by the sponsor within 45 days of all terminations, cancellations,
or transfer of apprenticeship agreements.
    Subd. 2. Signatures required. Apprenticeship agreements shall be signed by
the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal
guardian. When a minor enters into an apprenticeship agreement under this chapter for a
period of learning extending into majority, the apprenticeship agreement shall likewise be
binding for such a period as may be covered during the apprentice's majority.
    Subd. 3. Contents. Every apprenticeship agreement entered into under this chapter
shall contain:
(1) the names of the contracting parties, and the signatures required by subdivision 1;
(2) the date of birth, and information as to the race and sex of the apprentice, and, on
a voluntary basis, the apprentice's Social Security number;
(3) a statement of the trade, craft, occupation, or business which the apprentice is to
be taught, and the time at which the apprenticeship will begin and end;
(3) contact information of the sponsor and the division;
(4) a statement showing of the trade or occupation which the apprentice is to be
taught, and the date on which the apprenticeship will begin, and the number of hours to
be spent by the apprentice in work and the number of hours to be spent in concurrent,
supplementary instruction in related subjects, which instruction shall be not less than 144
hours during each year of the apprenticeship term. The maximum number of hours of
work per week not including time spent in related and supplemental instruction for any
apprentice shall not exceed either the number prescribed by law or the customary regular
number of hours per week for the employees of the company by which the apprentice is
employed. An apprentice may be allowed to work overtime provided that the overtime
work does not conflict with supplementary instruction course attendance. All time in
excess of the number of hours of work per week as specified in the apprenticeship
agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
be increased by the same percentage as the journeyworker's rate of pay for overtime is
increased in the same industry or establishment related instruction;
(5) a statement setting forth a schedule of the processes in the trade, occupation,
or industry divisions in which the apprentice is to be taught and the approximate time to
be spent at each process;
(6) (5) a statement of the graduated scale of wages to be paid the apprentice
and whether the required school time shall be compensated under sections 178.036,
subdivision 2, clause (4), and 178.044, as applicable;
(7) (6) a statement providing for a period of probation of not more than 500 hours
of employment and instruction extending over not more than four months, during which
time the apprenticeship agreement shall be terminated by the director upon written request
of either party, and providing that after such probationary period the apprenticeship
agreement may be terminated by the director by mutual agreement of all parties thereto,
or terminated by the director for good and sufficient reason listing any fringe benefits
to be provided to the apprentice;
(8) a provision that controversies or differences concerning the terms of the
apprenticeship agreement which cannot be resolved by the parties thereto, or which are
not covered by a collective bargaining agreement, may be submitted to the director for
determination as provided for in section 178.09;
(9) a provision that an employer who is unable to fulfill an obligation under the
apprenticeship agreement may, with the approval of the director, transfer such contract to
any other employer, provided that the apprentice consents and that such other employer
agrees to assume the obligations of the apprenticeship agreement; and
(7) a statement incorporating as part of the agreement the registered standards of
the apprenticeship program on the date of the agreement and as they may be amended
during the period of the agreement;
(8) a statement that the apprentice will be accorded equal opportunity in all phases
of apprenticeship employment and training, without discrimination due to race, color,
creed, religion, national origin, sex, sexual orientation, marital status, physical or mental
disability, receipt of public assistance, or age; and
(10) (9) such additional terms and conditions as may be prescribed or approved by
the director commissioner not inconsistent with the provisions of this chapter.

    Sec. 10. Minnesota Statutes 2012, section 178.09, is amended to read:
178.09 INVESTIGATIONS BY DIRECTOR AND ENFORCEMENT OF
APPRENTICESHIP AGREEMENTS.
    Subdivision 1. Complaint. Upon the complaint of any interested person or upon the
director's division's own initiative, the director division may investigate to determine if
there has been a violation of the terms of an apprenticeship agreement made under this
chapter. Complaints must be made in writing within 60 days of the events giving rise to the
complaint and must set forth the specific matters complained of together with relevant facts
and circumstances. Copies of pertinent documents and correspondence must accompany
the complaint. The director division may conduct such proceedings as are necessary for
that investigation and determination. All such proceedings shall be on a fair and impartial
basis and shall be conducted according to rules promulgated under section 178.041.
    Subd. 2. Determination; appeal. Within 90 days after the receipt of a complaint,
the division must issue a determination. The determination of the director division shall
be filed with the commissioner and written notice shall be served on all parties affected
by it. Any person aggrieved by any determination or action of the director may appeal
to the commissioner. If no appeal is filed with the commissioner within ten days of the
date of service, the director's division's determination shall become the final order of the
commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing
board to be composed of three members of the Apprenticeship Advisory Board appointed
under section 178.02, one member being a representative of an employer organization, one
representative being a member of an employee organization, and one member representing
the general public. The board shall hold a hearing on the appeal after due notice to the
interested parties and shall submit to the commissioner findings of fact and a recommended
decision accompanied by a memorandum of the reasons for it. Within 30 days after
submission, the commissioner may adopt the recommended decision of the board, or
disregard the recommended decision of the board and prepare a decision based on the
findings of fact and accompanied by a memorandum of reasons for that decision. Written
notice of the commissioner's determination and order shall be served on all parties affected
by it. Any person aggrieved or affected by any the commissioner's determination or order
of the commissioner may appeal from it to the district court having jurisdiction at any time
within 30 days after the date of the order by service of a written notice of appeal on the
commissioner. Upon service of the notice of appeal, the commissioner shall file with the
court administrator of the district court to which the appeal is taken a certified copy of the
order appealed from, together with findings of fact on which it is based. The person serving
a notice of appeal shall, within five days after its service, file it, with proof of service, with
the court administrator of the court to which the appeal is taken. The district court shall
then have jurisdiction over the appeal and it shall be entered in the records of the district
court and tried de novo according to the applicable rules. Any person aggrieved or affected
by any determination, order, or decision of the district court may appeal as in other civil
cases and order under this section is entitled to judicial review under sections 14.63 to
14.68 in the same manner that a person aggrieved by a final decision in a contested case is
entitled to judicial review. The commissioner's determination and order under this section
shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.
    Subd. 3. Service. Service under this chapter may be certified first class mail,
personal service, or in accordance with any consent to service filed with the commissioner.
Service by mail shall be accomplished in the manner provided in Minnesota Rules, part
1400.5550, subpart 2. Personal service shall be accomplished in the manner provided in
Minnesota Rules, part 1400.5550, subpart 3.

    Sec. 11. [178.091] INVESTIGATIONS AND ENFORCEMENT;
APPRENTICESHIP PROGRAMS AND STANDARDS.
    Subdivision 1. Investigations. In order to carry out the purposes of this chapter,
the commissioner may investigate registered apprenticeship programs and applicants
for program registration to determine whether there are any grounds for deregistration
of a registered program or for the denial of an application. Persons requested by the
commissioner to provide information or produce documents shall respond within 30 days
of the commissioner's service of the request.
    Subd. 2. Grounds. (a) The commissioner may deregister a registered apprenticeship
program or deny an application for registration if:
(1) the program does not comply with any requirement of Code of Federal
Regulations, title 29, part 29 or 32, this chapter or any rule promulgated pursuant to
section 178.041;
(2) the program does not have at least one registered apprentice in each trade or
occupation, except for the following specified periods of time:
(i) within the first 30 days after the date a program is registered; or
(ii) within one year of the date that a program graduates an apprentice in a trade or
occupation and the date of registration for the next apprentice in that trade or occupation; or
(3) the program is not conducted, operated, or administered in accordance with
the program's registered standards or with the requirements of this chapter, including
but not limited to:
(i) failure to provide on-the-job learning;
(ii) failure to provide related instruction;
(iii) failure of an employer to pay the apprentice a progressively increasing schedule
of wages consistent with the apprentice's skills acquired; or
(iv) persistent and significant failure to perform successfully.
(b) The commissioner may deregister an apprenticeship program at the written
request of the sponsor in a manner consistent with the provisions of Code of Federal
Regulations, title 29, part 29, section 29.8(a).
    Subd. 3. Reinstatement. If the commissioner deregisters a registered apprenticeship
program, the sponsor may request reinstatement not before one year after the effective
date of the deregistration. The commissioner may, as a condition of reinstatement, require
the sponsor to comply with reasonable conditions the commissioner considers necessary
to effectuate the purposes of this chapter.
    Subd. 4. Orders; hearings related to orders. (a) If the commissioner determines
that a registered apprenticeship program should be deregistered or that an application for
registration should be denied, the commissioner shall issue to and serve on the sponsor an
order deregistering the program's registration or denying the application for registration.
(b) An order issued under this subdivision must specify:
(1) the deficiency and the required remedy or corrective action;
(2) the time period to effectuate the required remedy or corrective action, which
shall be no more than 90 days; and
(3) any other requirement consistent with Code of Federal Regulations, title 29,
part 29, section 29.8(b).
(c) The sponsor to whom the commissioner issues an order under this subdivision
may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.

    Sec. 12. Minnesota Statutes 2012, section 178.10, is amended to read:
178.10 LIMITATION.
(a) The provisions of this chapter shall have no application to those infants
individuals who are apprenticed by the commissioner of corrections pursuant to sections
242.43 and 242.44.
(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:
(1) any apprenticeship provision in any collective bargaining agreement between
employers and employees establishing higher apprenticeship standards; or
(2) any special provision for veterans, minority persons, or women, in the standards,
apprentice qualifications, or operation of the program or in the apprenticeship agreement
which is not otherwise prohibited by law.

    Sec. 13. REVISOR'S INSTRUCTION.
The revisor of statutes shall replace the phrase "Division of Voluntary
Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.

    Sec. 14. REPEALER.
(a) Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and
178.08, are repealed.
(b) Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5,
7, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, are repealed.

    Sec. 15. EFFECTIVE DATE.
Sections 1 to 14 are effective January 1, 2015.