.................... moves to amend H.F. No. 2198 as follows:
Delete everything after the enacting clause and insert:
"Section 1. [178.011] DEFINITIONS.
1.4 Subdivision 1. Scope. The terms defined in this section have the meanings given
1.5and apply to this chapter.
1.6 Subd. 2. Apprentice. "Apprentice" means a worker who is at least 16 years of
1.7age who is employed to learn an apprenticeable trade or occupation in a registered
1.8apprenticeship program under this chapter.
1.9 Subd. 3. Apprenticeship Advisory Board. "Apprenticeship Advisory Board" or
1.10"board" means the Apprenticeship Advisory Board established under section 178.02 and
1.11as an advisory State Apprenticeship Council as defined in Code of Federal Regulations,
1.12title 29, section 29.2.
1.13 Subd. 4. Apprenticeship program. "Apprenticeship program" means a program
1.14registered under this chapter that includes standards containing all terms and conditions
1.15for the qualification, recruitment, selection, employment, and training of apprentices,
1.16as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written
1.18 Subd. 5. Commissioner. "Commissioner" means the commissioner of labor and
1.19industry or a duly designated representative of the commissioner who is an employee
1.20of the department.
1.21 Subd. 6. Department. "Department" means the Department of Labor and Industry
1.22established under section 175.001.
1.23 Subd. 7. Division. "Division" means the department's Labor Standards and
1.24Apprenticeship Division, established under sections 175.16 and 178.03, and the State
1.25Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29,
2.1 Subd. 8. Employer. "Employer" means any person or organization employing
2.2an apprentice whether or not the person or organization is a party to an apprenticeship
2.3agreement with the apprentice.
2.4 Subd. 9. Journeyworker. "Journeyworker" means a person who has attained a level
2.5of skill, abilities, and competencies recognized within an industry as having mastered the
2.6skills and competencies required for the trade or occupation.
2.7 Subd. 10. Registered apprenticeship agreement. "Registered apprenticeship
2.8agreement" or "apprenticeship agreement" means a written agreement, complying with
2.9section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is
2.10a minor, the minor's parent or guardian, which contains the terms and conditions of the
2.11employment and training of the apprentice.
2.12 Subd. 11. Related instruction. "Related instruction" means an organized and
2.13systematic form of instruction designed to provide the apprentice with the knowledge of
2.14the theoretical and technical subjects related to the apprentice's trade or occupation. The
2.15instruction may be given in a classroom through trade, occupational, or industrial courses
2.16or, when of equivalent value, by correspondence, electronic media, or other forms of
2.17self-study approved by the commissioner.
2.18 Subd. 12. Sponsor. "Sponsor" means an employer, employer association, or
2.19apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29,
2.20section 29.2, that operates an apprenticeship program and in whose name the program is
2.21or is to be registered or approved.
2.22EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 2. [178.012] UNIFORMITY WITH FEDERAL LAW.
2.24 Subdivision 1. Apprenticeship rules. Federal regulations governing apprenticeship
2.25in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29,
2.26sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to
2.27amendment by this chapter or by rule under section 178.041.
2.28 Subd. 2. State Apprenticeship Agency. The commissioner shall take all necessary
2.29steps as permitted by law to obtain and maintain the status of the division as a State
2.30Apprenticeship Agency recognized by the United States Department of Labor under Code
2.31of Federal Regulations, title 29, part 29, section 29.13.
2.32EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 3. Minnesota Statutes 2012, section 178.02, is amended to read:
3.1178.02 APPRENTICESHIP ADVISORY BOARD.
Subdivision 1. Members.
of labor and industry, hereinafter
3.3 called the commissioner,
shall appoint an Apprenticeship Board
, hereinafter referred
3.4 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
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
Subd. 4. Duties.
The board shall meet at the call of the commissioner and
3.11shall 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.
3.16EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 4. Minnesota Statutes 2012, section 178.03, is amended to read:
3.18178.03 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
3.22 labor and industry, hereinafter referred to as the commissioner
Subd. 2. Director of labor standards and apprenticeship.
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
3.30 commissioner, and with the advice and consultation of the Apprenticeship Board, is
3.31 authorized: to administer the provisions of this chapter; to promote apprenticeship and
3.32 other forms of on-the-job learning; to establish, in cooperation and consultation with the
3.33 Apprenticeship Board and with the apprenticeship committees, conditions, training, and
3.34 learning standards for the approval of apprenticeship programs and agreements, which
4.1 conditions and standards shall in no case be lower than those (1) prescribed by this chapter,
4.2 and (2) established under The division shall be administered as prescribed by this chapter
4.3and 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,
; to issue certificates of registration to sponsors of approved apprenticeship
4.8 programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion
4.9 that approval is for the best interest of the apprentice, any apprenticeship agreement which
4.10 meets the standards established hereunder; to terminate any apprenticeship agreement in
4.11 accordance with the provisions of such agreement; to keep a record of apprenticeship
4.12 agreements and their disposition; to issue certificates of completion of apprenticeship;
4.13 and to perform such other duties as the commissioner deems necessary to carry out the
4.14 intent of this chapter; provided, that the administration and supervision of supplementary
4.15 instruction in related subjects for apprentices; coordination of instruction on a concurrent
4.16 basis with job experiences, and the selection and training of teachers and coordinators
4.17 for such instruction shall be the function of state and local boards responsible for
4.18 vocational education
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.
, if requested by a
sponsoring entity program sponsor
, shall grant reciprocity approval to apprentices,
of employers and unions who jointly form a sponsoring entity
4.29 on a multistate basis in other than the building construction industry if such programs
4.30 are in conformity with this chapter and have been registered in compliance with Code
4.31 of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized
4.32 by or registered with the United States Department of Labor, Office of Apprenticeship,
4.33 when such approval is necessary for federal purposes under Code of Federal Regulations,
4.34 title 29, section
29.13 (a) or
29.13 (b)(7), and standards that are registered in other states.
4.35Program sponsors seeking reciprocal approval must meet the requirements of this chapter
4.36including the wage and hour provisions and apprentice ratio standards
5.1EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 5. [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.
5.3 Subdivision 1. Application. To apply for the registration of an apprenticeship
5.4program, a sponsor shall submit a completed application to the division on a form provided
5.5by the commissioner, which shall include standards of apprenticeship that comply with the
5.6requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.
5.7 Subd. 2. Provisional approval. The division shall grant a provisional approval
5.8period of one year to an applicant demonstrating that the standards submitted meet the
5.9requirements of this chapter. The division may review each program granted provisional
5.10approval for quality and for conformity with the requirements of this section and section
5.11178.036 at any time, but not less than biannually, during the provisional approval period.
5.13(1) a program that conforms with the requirements of this chapter:
5.14(i) may be approved; or
5.15(ii) may continue to be provisionally approved through the first full training cycle; and
5.16(2) a program not in operation or not conforming with the requirements of this
5.17chapter during the provisional approval period shall be deregistered.
5.18The division shall inform the applicant of the results of its review in writing at least 30
5.19days prior to the expiration of the provisional approval period.
5.20 Subd. 3. Review. The division shall review all programs for quality and for
5.21conformity with the requirements of this chapter at the end of the first full training
5.22cycle. Subsequent review of a registered program must be conducted at least annually.
5.23Programs not in operation or not conforming to this chapter at the time of review may be
5.24recommended for deregistration.
5.25 Subd. 4. Program modification. To apply for the modification of or change to
5.26a registered program, a sponsor shall submit a written request for modification to the
5.27division. The division shall approve or disapprove a modification request within 90 days
5.28from the date of receipt. If approved, the modification or change must be recorded and
5.29acknowledged within 90 days of its approval as an amendment to the registered program.
5.30If not approved, the division shall notify the sponsor in writing of the disapproval and the
5.31reasons for the disapproval. The division may provide technical assistance to a sponsor
5.32seeking to modify or change a registered program.
5.33 Subd. 5. Notice. When an application is submitted under subdivision 1 by an
5.34employer or employers' association, and where the standards, collective bargaining
5.35agreement, or other instrument provides for participation by a union in any manner in the
6.1operation of the substantive matters of the apprenticeship program, and the participation
6.2is exercised, a written acknowledgment of the union's agreement or a written statement
6.3specifying that the union has no objection to the registration is required. Where no union
6.4participation is evidenced and practiced, the employer or employers' association shall
6.5simultaneously furnish to the union, if any, which functions as the collective bargaining
6.6agent of the employees to be trained, a copy of its application for registration and the
6.7apprenticeship program. The commissioner shall provide a reasonable time of not less
6.8than 30 days nor more than 60 days for receipt of union comments, if any, before final
6.9action on the application for registration is taken. Union comments must be submitted to
6.10the division during the time period specified by the commissioner.
6.11 Subd. 6. Certificate. Upon registration of a program, the commissioner shall issue a
6.12certificate of registration to the sponsor. Within 30 days after the certificate is mailed or
6.13otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of
6.14at least one executed apprenticeship agreement.
6.15 Subd. 7. Policy requirement. It must be the policy of the employer and sponsor
6.16that the recruitment, selection, employment, and training of apprentices during their
6.17apprenticeship must be without discrimination due to race, color, creed, religion, national
6.18origin, sex, sexual orientation, marital status, physical or mental disability, receipt of
6.19public assistance, or age. The employer and sponsor must take affirmative action to
6.20provide equal opportunity in apprenticeship and must operate the apprenticeship program
6.21as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota
6.22plan for equal opportunity in apprenticeship.
6.23EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 6. [178.036] STANDARDS OF APPRENTICESHIP.
6.25 Subdivision 1. Federal uniformity. Each program must have an organized, written
6.26plan of program standards embodying the terms and conditions of employment, training,
6.27and supervision of one or more apprentices in an apprenticeable trade or occupation, as
6.28defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by
6.29a sponsor and employer who has undertaken to carry out the apprentice training program.
6.30The program standards must contain the provisions that address each item identified in
6.31Code of Federal Regulations, title 29, part 29, section 29.5(b).
6.32 Subd. 2. Standards. In addition to the requirements in subdivision 1, the program
6.33standards must also contain provisions in compliance with paragraphs (a) to (j):
6.34(a) Related instruction. A minimum of 144 hours of related instruction is required
6.35in each training cycle. At least 50 hours of related safety instruction is required during the
7.1term of apprenticeship. Time spent in related instruction cannot be considered as hours of
7.2work as required by the job process schedule. Every apprenticeship instructor must meet
7.3the Department of Education's requirements for a vocational-technical instructor or be a
7.4subject matter expert, which is an individual such as a journeyworker, who is recognized
7.5within an industry as having expertise in a specific trade or occupation.
7.6(b) Job process schedule. Each time-based apprenticeship program must include
7.7not less than 2,000 hours of reasonably continuous employment.
7.8(c) Ratios. If the apprentice is covered by a collective bargaining agreement, the
7.9employer must follow the provisions of the collective bargaining agreement regarding the
7.10maximum number of apprentices to be employed at the work site for each journeyworker
7.11employed at the same work site. In the absence of a collective bargaining agreement, for
7.12the purposes of direct supervision and the safety and instruction of the apprentice, the
7.13ratio shall be:
7.14(1) one apprentice for the first journeyworker employed at the work site plus one
7.15apprentice for each additional three journeyworkers employed at the work site;
7.16(2) the work site ratio utilized by the majority of registered apprenticeship
7.17agreements in the same trade or occupation; or
7.18(3) a program-specific ratio that has been approved by the Apprenticeship Advisory
7.20(d) Graduated schedule of wages. The graduated schedule of wages for an
7.21apprenticeship program shall be calculated as a percentage of the journeyworker rate in
7.22the majority of registered apprenticeship agreements in the same trade or occupation in the
7.23state. If there are no registered apprenticeship agreements in the same trade or occupation,
7.24the graduated schedule of wages may be determined by the sponsor.
7.25(e) Probationary period. The standards must provide a period of probation of not
7.26more than 500 hours of employment and instruction extending over not more than four
7.27months, during which time the apprenticeship agreement shall be terminated by the director
7.28upon written request of either party, and providing that after such probationary period the
7.29apprenticeship agreement may be terminated by the director by mutual agreement of all
7.30parties thereto, or terminated by the director for good and sufficient reason.
7.31(f) Dispute resolution. The program standards must include a provision that
7.32controversies or differences concerning the terms of the apprenticeship agreement which
7.33cannot be resolved by the parties thereto, or which are not covered by a collective
7.34bargaining agreement, may be submitted to the commissioner for determination as
7.35provided for in section 178.09.
8.1(g) Term of apprenticeship. The term of apprenticeship may be measured either
8.2through the completion of at least 2,000 work hours of on-the-job training (time-based
8.3approach), the attainment of competency (competency-based approach), or a blend of the
8.4time-based and competency-based approaches (hybrid approach).
8.5(h) Training cycle. The training cycle for related instruction must be designated in
8.6hours, days, or months for each individual trade or occupation included in the standards.
8.7(i) Responsibilities of the apprentice. An apprentice employed under the program
8.8standards shall agree to be punctual and regular in attendance, and to endeavor to the best
8.9of the apprentice's ability to perfect the required skills for the trade or occupation.
8.10(j) Coordination of apprentices. The sponsor shall designate a qualified individual
8.11as a coordinator of apprentices who shall:
8.12(1) maintain an adequate record of progress in training each apprentice;
8.13(2) be responsible for assuring that the requirements of the applicable learning
8.14program are met during the prescribed training term; and
8.15(3) perform other duties as may be assigned by the sponsor relative to the
8.16development and operation of an effective program of apprenticeship.
8.17EFFECTIVE DATE.This section is effective January 1, 2015.
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
adopted in accordance with chapter 14 and shall have the force and effect of law.
8.22EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 8. [178.044] DETERMINATION OF APPRENTICE WAGES.
8.24 Subdivision 1. Maximum hours. The maximum number of hours of work per week
8.25shall not exceed either the number prescribed by law or the customary regular number of
8.26hours per week for the employees of the company by which the apprentice is employed.
8.27Time spent in related and supplemental instruction for any apprentice shall not be included
8.28in the maximum number of hours of work per workweek.
8.29 Subd. 2. Overtime. An apprentice may be allowed to work overtime provided that
8.30the overtime work does not conflict with related instruction course attendance. All time
8.31in excess of the number of hours of work per week as specified in the apprenticeship
8.32agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
9.1be increased by the same percentage as the journeyworker's rate of pay for overtime is
9.2increased in the same industry or establishment.
9.3 Subd. 3. Journeyworker wage rate. If the apprentice is not covered by a collective
9.4bargaining agreement, the journeyworker wage rate upon which the apprentice agreement
9.5graduated schedule of wages is calculated shall be:
9.6(1) the most current Minnesota state prevailing wage rate determination for the
9.7same trade or occupation in the county in which the apprentice's employer is located. If
9.8an apprenticeship agreement entered into after January 1, 2015, does not specify fringe
9.9benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated
9.10must be the total rate listed in the wage determination;
9.11(2) if there is no Minnesota prevailing wage rate determination for the same trade or
9.12occupation in the county in which the apprentice's employer is located,
9.13the journeyworker wage may be determined by the sponsor with the approval of the
9.15EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 9. Minnesota Statutes 2012, section 178.07, is amended to read:
9.17178.07 REGISTERED APPRENTICESHIP AGREEMENTS.
9.18 Subdivision 1. Approval required. All terminations, cancellations, and transfers of
9.19apprenticeship agreements shall be approved by the division in writing. The division must
9.20be notified in writing by the sponsor within 45 days of all terminations, cancellations,
9.21or transfer of apprenticeship agreements.
9.22 Subd. 2. Signatures required. Apprenticeship agreements shall be signed by
9.23the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal
9.24guardian. When a minor enters into an apprenticeship agreement under this chapter for a
9.25period of learning extending into majority, the apprenticeship agreement shall likewise be
9.26binding for such a period as may be covered during the apprentice's majority.
9.27 Subd. 3. Contents.
Every apprenticeship agreement entered into under this chapter
(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
9.31a voluntary basis, the apprentice's Social Security number
(3) a statement of the trade, craft, occupation, or business which the apprentice is to
9.33 be taught, and the time at which the apprenticeship will begin and end;
9.34(3) contact information of the sponsor and the division;
(4) a statement
showing of the trade or occupation which the apprentice is to be
10.2taught, 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
10.5 hours during each year of the apprenticeship term. The maximum number of hours of
10.6 work per week not including time spent in related and supplemental instruction for any
10.7 apprentice shall not exceed either the number prescribed by law or the customary regular
10.8 number of hours per week for the employees of the company by which the apprentice is
10.9 employed. An apprentice may be allowed to work overtime provided that the overtime
10.10 work does not conflict with supplementary instruction course attendance. All time in
10.11 excess of the number of hours of work per week as specified in the apprenticeship
10.12 agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall
10.13 be increased by the same percentage as the journeyworker's rate of pay for overtime is
10.14 increased in the same industry or establishment related instruction
(5) a statement setting forth a schedule of the processes in the trade, occupation,
10.16 or industry divisions in which the apprentice is to be taught and the approximate time to
10.17 be spent at each process;
10.18 (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,
10.20subdivision 2, clause (4), and 178.044, as applicable
providing for a period of probation of not more than 500 hours
10.22 of employment and instruction extending over not more than four months, during which
10.23 time the apprenticeship agreement shall be terminated by the director upon written request
10.24 of either party, and providing that after such probationary period the apprenticeship
10.25 agreement may be terminated by the director by mutual agreement of all parties thereto,
10.26 or terminated by the director for good and sufficient reason listing any fringe benefits
10.27to be provided to the apprentice
(8) a provision that controversies or differences concerning the terms of the
10.29 apprenticeship agreement which cannot be resolved by the parties thereto, or which are
10.30 not covered by a collective bargaining agreement, may be submitted to the director for
10.31 determination as provided for in section
10.32 (9) a provision that an employer who is unable to fulfill an obligation under the
10.33 apprenticeship agreement may, with the approval of the director, transfer such contract to
10.34 any other employer, provided that the apprentice consents and that such other employer
10.35 agrees to assume the obligations of the apprenticeship agreement; and
11.1(7) a statement incorporating as part of the agreement the registered standards of
11.2the apprenticeship program on the date of the agreement and as they may be amended
11.3during the period of the agreement;
11.4(8) a statement that the apprentice will be accorded equal opportunity in all phases
11.5of apprenticeship employment and training, without discrimination due to race, color,
11.6creed, religion, national origin, sex, sexual orientation, marital status, physical or mental
11.7disability, receipt of public assistance, or age; and
11.8 (10) (9)
such additional terms and conditions as may be prescribed or approved by
not inconsistent with the provisions of this chapter.
11.10EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 10. Minnesota Statutes 2012, section 178.09, is amended to read:
BY DIRECTOR AND ENFORCEMENT OF
Subdivision 1. Complaint.
Upon the complaint of any interested person or upon the
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
11.18complaint and must set forth the specific matters complained of together with relevant facts
11.19and circumstances. Copies of pertinent documents and correspondence must accompany
may conduct such proceedings as are necessary for
that investigation and determination. All such proceedings shall be on a fair and impartial
and shall be conducted according to rules promulgated under section
Subd. 2. Determination; appeal. Within 90 days after the receipt of a complaint,
11.24the division must issue a determination.
The determination of the
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
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
, 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
any the commissioner's
12.7 of the commissioner may appeal from it to the district court having jurisdiction at any time
12.8 within 30 days after the date of the order by service of a written notice of appeal on the
12.9 commissioner. Upon service of the notice of appeal, the commissioner shall file with the
12.10 court administrator of the district court to which the appeal is taken a certified copy of the
12.11 order appealed from, together with findings of fact on which it is based. The person serving
12.12 a notice of appeal shall, within five days after its service, file it, with proof of service, with
12.13 the court administrator of the court to which the appeal is taken. The district court shall
12.14 then have jurisdiction over the appeal and it shall be entered in the records of the district
12.15 court and tried de novo according to the applicable rules. Any person aggrieved or affected
12.16 by any determination, order, or decision of the district court may appeal as in other civil
12.17 cases and order under this section is entitled to judicial review under sections 14.63 to
12.1814.68 in the same manner that a person aggrieved by a final decision in a contested case is
12.19entitled to judicial review. The commissioner's determination and order under this section
12.20shall be a final decision and order of the department for purposes of sections 14.63 to 14.68
12.21 Subd. 3. Service. Service under this chapter may be certified first class mail,
12.22personal service, or in accordance with any consent to service filed with the commissioner.
12.23Service by mail shall be accomplished in the manner provided in Minnesota Rules, part
12.241400.5550, subpart 2. Personal service shall be accomplished in the manner provided in
12.25Minnesota Rules, part 1400.5550, subpart 3.
12.26EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 11. [178.091] INVESTIGATIONS AND ENFORCEMENT;
12.28APPRENTICESHIP PROGRAMS AND STANDARDS.
12.29 Subdivision 1. Investigations. In order to carry out the purposes of this chapter,
12.30the commissioner may investigate registered apprenticeship programs and applicants
12.31for program registration to determine whether there are any grounds for deregistration
12.32of a registered program or for the denial of an application. Persons requested by the
12.33commissioner to provide information or produce documents shall respond within 30 days
12.34of the commissioner's service of the request.
13.1 Subd. 2. Grounds. (a) The commissioner may deregister a registered apprenticeship
13.2program or deny an application for registration if:
13.3(1) the program does not comply with any requirement of Code of Federal
13.4Regulations, title 29, part 29 or 32, this chapter or any rule promulgated pursuant to
13.6(2) the program does not have at least one registered apprentice in each trade or
13.7occupation, except for the following specified periods of time:
13.8(i) within the first 30 days after the date a program is registered; or
13.9(ii) within one year of the date that a program graduates an apprentice in a trade or
13.10occupation and the date of registration for the next apprentice in that trade or occupation; or
13.11(3) the program is not conducted, operated, or administered in accordance with
13.12the program's registered standards or with the requirements of this chapter, including
13.13but not limited to:
13.14(i) failure to provide on-the-job learning;
13.15(ii) failure to provide related instruction;
13.16(iii) failure of an employer to pay the apprentice a progressively increasing schedule
13.17of wages consistent with the apprentice's skills acquired; or
13.18(iv) persistent and significant failure to perform successfully.
13.19(b) The commissioner may deregister an apprenticeship program at the written
13.20request of the sponsor in a manner consistent with the provisions of Code of Federal
13.21Regulations, title 29, part 29, section 29.8(a).
13.22 Subd. 3. Reinstatement. If the commissioner deregisters a registered apprenticeship
13.23program, the sponsor may request reinstatement not before one year after the effective
13.24date of the deregistration. The commissioner may, as a condition of reinstatement, require
13.25the sponsor to comply with reasonable conditions the commissioner considers necessary
13.26to effectuate the purposes of this chapter.
13.27 Subd. 4. Orders; hearings related to orders. (a) If the commissioner determines
13.28that a registered apprenticeship program should be deregistered or that an application for
13.29registration should be denied, the commissioner shall issue to and serve on the sponsor an
13.30order deregistering the program's registration or denying the application for registration.
13.31(b) An order issued under this subdivision must specify:
13.32(1) the deficiency and the required remedy or corrective action;
13.33(2) the time period to effectuate the required remedy or corrective action, which
13.34shall be no more than 90 days; and
13.35(3) any other requirement consistent with Code of Federal Regulations, title 29,
13.36part 29, section 29.8(b).
14.1(c) The sponsor to whom the commissioner issues an order under this subdivision
14.2may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.
14.3EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 12. Minnesota Statutes 2012, section 178.10, is amended to read:
The provisions of this chapter shall have no application to those
who are apprenticed by the commissioner of corrections pursuant to sections
14.9(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:
14.10(1) any apprenticeship provision in any collective bargaining agreement between
14.11employers and employees establishing higher apprenticeship standards; or
14.12(2) any special provision for veterans, minority persons, or women, in the standards,
14.13apprentice qualifications, or operation of the program or in the apprenticeship agreement
14.14which is not otherwise prohibited by law.
14.15EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 13. Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read:
Subd. 4. Independent contractor.
(a) An individual is an independent contractor
and not an employee of the person for whom the individual is performing services in the
course of the person's trade, business, profession, or occupation only if the individual
14.20 registered with the Department of Labor and Industry, if required under subdivision 4a,
14.21 and the individual
(1) maintains a separate business with the individual's own office, equipment,
materials, and other facilities;
(2)(i) holds or has applied for a federal employer identification number or (ii) has
filed business or self-employment income tax returns with the federal Internal Revenue
Service if the individual has performed services in the previous year;
(3) is operating under contract to perform the specific services for the person
for specific amounts of money and under which the individual controls the means of
performing the services;
(4) is incurring the main expenses related to the services that the individual is
performing for the person under the contract;
(5) is responsible for the satisfactory completion of the services that the individual
has contracted to perform for the person and is liable for a failure to complete the services;
(6) receives compensation from the person for the services performed under the
contract on a commission or per-job or competitive bid basis and not on any other basis;
(7) may realize a profit or suffer a loss under the contract to perform services for
(8) has continuing or recurring business liabilities or obligations; and
(9) the success or failure of the individual's business depends on the relationship of
business receipts to expenditures.
15.8An individual who is not registered, if required by section 326B.701, is presumed to
15.9be an employee of a person for whom the individual performs services in the course of
15.10the person's trade, business, profession, or occupation. The person for whom the services
15.11were performed may rebut this presumption by showing that the unregistered individual
15.12met all nine factors at the time the services were performed.
(b) If an individual is an owner or partial owner of a business entity, the individual is
an employee of the person for whom the individual is performing services in the course
of the person's trade, business, profession, or occupation, and is not an employee of the
business entity in which the individual has an ownership interest, unless:
(1) the business entity meets the nine factors in paragraph (a);
(2) invoices and payments
in the name of the business entity; and
(3) the business entity is registered with the secretary of state, if required
15.20 (4) the business entity is registered with the Department of Labor and Industry,
15.21 if required under subdivision 4a.
15.22If the business entity in which the individual has an ownership interest is not
15.23registered, if required by section 326B.701, the individual is presumed to be an employee
15.24of a person for whom the individual performs services and not an employee of the business
15.25entity in which the individual has an ownership interest. The person for whom the services
15.26were performed may rebut the presumption by showing that the business entity met the
15.27requirements of clauses (1) to (3) at the time the services were performed.
15.28EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 14. Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read:
Subd. 4a. Applicability; registration
pilot project requirement.
15.31 commissioner shall implement a pilot project, effective July 1, 2012, for the registration
Persons who perform public or private sector commercial or residential building
construction or improvement services as described in subdivision 2 must register with the
15.34commissioner as provided in this section
. The purpose of
the pilot project is to evaluate
15.35 whether the information obtained through registration assists registration is to assist
the Department of Labor and Industry, the Department of Employment and Economic
Development, and the Department of Revenue to enforce laws related to misclassification
The commissioner shall issue a report to the legislature no later than
16.4 January 1, 2014, on recommendations for amendments to the registration program,
16.5 including reasonable registration fees to be used to aid in enforcing misclassification laws.
16.6 The commissioner must not charge a fee for registration under the pilot project, but may
16.7 take the enforcement action specified in subdivision 8a. The pilot project shall expire on
16.8 June 30, 2014, unless extended by the legislature.
(b) Except as provided in paragraph (c), any person who performs construction
services in the state on or after September 15, 2012, must register with the commissioner
as provided in
subdivision 5 section 326B.701
before performing construction services for
another person. The requirements for registration under
this subdivision section 326B.701
are not a substitute for, and do not relieve a person from complying with, any other law
requiring that the person be licensed, registered, or certified.
(c) The registration requirements in
this subdivision section 326B.701
do not apply to:
(1) a person who, at the time the person is performing the construction services,
holds a current license, certificate, or registration under chapter 299M or 326B;
(2) a person who holds a current independent contractor exemption certificate
issued under this section that is in effect on September 15, 2012, except that the person
must register under
no later than the date the exemption certificate
expires, is revoked, or is canceled;
(3) a person who has given a bond to the state under section
(4) an employee of the person performing the construction services, if the person
was in compliance with laws related to employment of the individual at the time the
construction services were performed;
(5) an architect or professional engineer engaging in professional practice as defined
326.02, subdivisions 2
(6) a school district or technical college governed under chapter 136F;
(7) a person providing construction services on a volunteer basis, including but not
limited to Habitat for Humanity and Builders Outreach Foundation, and their individual
volunteers when engaged in activities on their behalf; or
(8) a person exempt from licensing under section
326B.805, subdivision 6
, clause (5).
16.33EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 15. Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read:
Subd. 5. Registration application.
(a) Persons required to register under
subdivision 4a section 326B.701
must submit electronically, in the manner prescribed by
the commissioner, a complete application according to paragraphs (b) to (d).
(b) A complete application must include all of the following information about any
individual who is registering as an individual or a sole proprietor, or who owns 25 percent
or more of a business entity being registered:
(1) the individual's full legal name and title at the applicant's business;
(2) the individual's business address and telephone number;
(3) the percentage of the applicant's business owned by the individual; and
(4) the individual's Social Security number.
(c) A complete application must also include the following information:
(1) the applicant's legal name; assumed name filed with the secretary of state, if any;
designated business address; physical address; telephone number; and e-mail address;
(2) the applicant's Minnesota tax identification number, if one is required or has
(3) the applicant's federal employer identification number, if one is required or
has been issued;
(4) evidence of the active status of the applicant's business filings with the secretary
of state, if one is required or has been issued;
(5) whether the applicant has any employees at the time the application is filed;
(6) the names of all other persons with an ownership interest in the business entity
who are not identified in paragraph (b), and the percentage of the interest owned by each
person, except that the names of shareholders with less than ten percent ownership in a
publicly traded corporation need not be provided;
(7) information documenting compliance with workers' compensation and
unemployment insurance laws;
(8) a certification that the person signing the application has: reviewed it; determined
that the information provided is true and accurate; and determined that the person signing
is authorized to sign and file the application as an agent of the applicant. The name of the
person signing, entered on an electronic application, shall constitute a valid signature of
the agent on behalf of the applicant; and
(9) a signed authorization for the Department of Labor and Industry to verify the
information provided on or with the application.
(d) A registered person must notify the commissioner within 15 days after there is a
change in any of the information on the application as approved. This notification must
be provided electronically in the manner prescribed by the commissioner. However, if
the business entity structure, legal form of the business entity, or business ownership has
changed, the person must submit a new registration application and registration fee, if
any, for the new business entity.
(e) The registered person must remain registered while providing construction
services for another person. The provisions of sections
. A person with an expired
18.7registration shall not provide construction services for another person if registration is
18.8required under this section. Registration application and expiration time frames are as
18.10(1) all registrations issued on or before June 30, 2015, expire on June 30, 2015;
18.11(2) all registrations issued after June 30, 2015, expire on the following June 30
18.12of each odd-numbered year; and
18.13(3) a person may submit a registration or renewal application starting April 1 of the
18.14year the registration expires. If a renewal application is submitted later than May 1 of
18.15the expiration year, registration may expire before the department has issued or denied
18.17EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read:
Subd. 7. Prohibited activities related to independent contractor status.
prohibited activities in this subdivision are in addition to those prohibited in sections
(b) An individual shall not hold himself or herself out as an independent contractor
unless the individual meets the requirements of subdivision 4.
(c) A person who provides construction services in the course of the person's trade,
business, occupation, or profession shall not:
(1) require an individual through coercion, misrepresentation, or fraudulent means to
adopt independent contractor status or form a business entity;
(2) knowingly misrepresent or misclassify an individual as an independent
18.30 Subd. 7a. Prohibited activities related to registration. (a) The prohibited activities
18.31in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.
18.32(b) A person who provides construction services in the course of the person's trade,
18.33business, occupation, or profession shall not:
18.34 (3) (1)
contract with or perform construction services for another person without first
being registered if required by
subdivision 4a section 326B.701
contract with or pay another person to perform construction services if
the other person is not registered if required by subdivision 4a. All payments to an
unregistered person for construction services on a single project site shall be considered a
single violation. It is not a violation of this clause:
(i) for a person to contract with or pay an unregistered person if the unregistered
person was registered at the time the contract for construction services was entered into; or
(ii) for a homeowner or business to contract with or pay an unregistered person if
the homeowner or business is not in the trade, business, profession, or occupation of
performing building construction or improvement services; or
be penalized for violations of this subdivision that are committed by another
person. This clause applies only to violations of this paragraph.
19.12EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 17. Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read:
Subd. 8a. Enforcement; remedies; and penalties. (a)
maximum penalty amount in section
326B.082, subdivisions 7
and 12, the maximum
penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if
the person registers within 30 days of the date of the penalty order.
19.18(b) The penalty for contracting with or paying an unregistered person to perform
19.19construction services in violation of subdivision 7a, paragraph (b), clause (2), shall be as
19.20provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive
19.21the penalty for the first violation.
19.22EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 18. Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read:
Subd. 2. Public buildings and state licensed facilities; administration by
19.25commissioner. Unless the commissioner has entered into an agreement under subdivision
19.262a or subdivision 2b,
the commissioner shall administer and enforce the State Building
Code as a municipality with respect to public buildings and state licensed facilities in the
state. The commissioner shall establish appropriate permit, plan review, inspection fees,
and surcharges for public buildings and state licensed facilities.
Municipalities other than the state having an agreement with the commissioner
19.31 for code administration and enforcement service for public buildings and state licensed
19.32 facilities shall charge their customary fees, including surcharge, to be paid directly to the
19.33 jurisdiction by the applicant seeking authorization to construct a public building or a state
20.1 licensed facility. The commissioner shall sign an agreement with a municipality other than
20.2 the state for plan review, code administration, and code enforcement service for public
20.3 buildings and state licensed facilities in the jurisdiction if the building officials of the
20.4 municipality meet the requirements of section
326B.133 and wish to provide those services
20.5 and if the commissioner determines that the municipality has enough adequately trained
20.6 and qualified building inspectors to provide those services for the construction project.
20.7 The commissioner may direct the state building official to assist a community that
20.8 has been affected by a natural disaster with building evaluation and other activities related
20.9 to building codes.
20.10 Administration and enforcement in a municipality under this section must apply
20.11 any optional provisions of the State Building Code adopted by the municipality. A
20.12 municipality adopting any optional code provision shall notify the state building official
20.13 within 30 days of its adoption.
20.14 The commissioner shall administer and enforce the provisions of the code relating to
20.15 elevators statewide, except as provided for under section
326B.184, subdivision 4 .
Sec. 19. Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:
20.18 Subd. 2a. Public buildings and state licensed facilities; municipal agreement
20.19for all building projects. (a) The commissioner shall enter into an agreement with a
20.20municipality other than the state for plan review, inspection, code administration, and
20.21code enforcement on public buildings and state licensed facilities in the jurisdiction if
20.22the municipality requests to provide those services and the commissioner determines
20.23that the municipality has enough adequately trained and qualified inspectors to provide
20.24those services. In determining whether a municipality has enough adequately trained and
20.25qualified inspectors to provide the service, the commissioner must consider all inspectors
20.26that are employed by the municipality, are under contract with the municipality to provide
20.27inspection services, or are obligated to provide inspection services to the municipality
20.28under any other lawful agreement.
20.29(b) The criteria used to make this determination shall be provided in writing to
20.30the municipality requesting an agreement.
20.31(c) If the commissioner determines that the municipality lacks enough adequately
20.32trained and qualified inspectors to provide the required services, a written explanation of
20.33the deficiencies shall be provided to the municipality.
20.34(d) The municipality shall be given an opportunity to remedy any deficiencies
20.35and request reconsideration of the commissioner's determination. A request for
21.1reconsideration must be in writing and accompanied by substantiating documentation. A
21.2request for reconsideration must be received by the commissioner within 90 days of the
21.3determination explanation. The commissioner shall review the information and issue a
21.4final determination to the municipality within 30 days of the request.
21.5(e) A municipality aggrieved by a final decision of the commissioner to not enter into
21.6an agreement may appeal to be heard as a contested case in accordance with chapter 14.
Sec. 20. Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:
21.9 Subd. 2b. Public buildings and state licensed facilities; municipal agreement
21.10for certain building projects. The commissioner shall enter into an agreement with a
21.11municipality other than the state for inspection, code administration, and code enforcement
21.12of reserved projects occurring on public buildings and state licensed facilities in its
21.13jurisdiction if the municipality has a designated building official as required by section
21.14326B.133 and requests to provide those services.
21.15For purposes of this subdivision, "reserved projects" includes the following:
21.16(1) roof covering replacement that does not add roof load;
21.17(2) towers requiring special inspection;
21.18(3) single-level storage buildings not exceeding 5,000 square feet;
21.19(4) exterior maintenance work, including replacement of siding, windows, and doors;
21.20(5) HVAC unit replacement that does not add roof load or ventilation capacity;
21.21(6) accessibility upgrades not involving building additions or structural alterations;
21.22(7) remodeling that does not change the building's occupancy, structural system, exit
21.23access or discharge pattern, or mechanical load; and
21.24(8) other projects determined to be reserved by the commissioner.
Sec. 21. Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:
21.27 Subd. 2c. Municipal fees. Municipalities other than the state having an agreement
21.28under subdivision 2a with the commissioner for code administration and enforcement
21.29service for public buildings and state licensed facilities or inspecting under authority of
21.30subdivision 2b shall charge their customary fees, including surcharge, to be paid directly
21.31to the jurisdiction by the applicant seeking authorization to construct a public building or
21.32a state licensed facility.
Sec. 22. Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:
22.3 Subd. 2d. Public buildings and state licensed facilities; municipal obligation.
22.4An agreement with the commissioner under subdivision 2a or 2b must require the
22.5municipality to attend to applicable aspects of code administration and enforcement as
22.6described in the agreement and established by rule.
Sec. 23. Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:
22.9 Subd. 2e. Public buildings and state licensed facilities; applicable code.
22.10Administration and enforcement in a municipality under subdivision 2a and 2b must
22.11apply any optional provisions of the State Building Code adopted by the municipality. A
22.12municipality adopting any optional code provision shall notify the state building official
22.13within 30 days of its adoption.
Sec. 24. Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:
22.16 Subd. 2f. Natural disasters. The commissioner may direct the state building
22.17official to assist a community that has been affected by a natural disaster with building
22.18evaluation and other activities related to building codes.
Sec. 25. Minnesota Statutes 2012, section 326B.106, is amended by adding a
subdivision to read:
22.21 Subd. 2g. Elevators. The commissioner shall administer and enforce the provisions
22.22of the code relating to elevators statewide, except as provided for under section
Sec. 26. [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION.
22.25The following definition applies to this section: "business entity" means a person
22.26other than an individual or a sole proprietor.
22.27EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 27. REVISOR'S INSTRUCTION.
22.29The revisor of statutes shall replace the phrase "Division of Voluntary
22.30Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.
23.1EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 28. REVISOR'S INSTRUCTION.
23.3The revisor of statutes shall renumber the citations in column A with the citations
23.4in column B. The revisor shall correct any cross-references required because of the
23.5renumbering and may make necessary grammatical and technical changes, including
23.6changes to sentence structure, to preserve the meaning of the text.
23.18EFFECTIVE DATE.This section is effective the day following final enactment.
|326B.701, subd. 1, paragraphs (a)
||181.723, subd. 1, paragraph (g)
|326B.701, subd. 1, paragraph (c)
||181.723, subd. 4a
|326B.701, subd. 2
||181.723, subd. 5
|326B.701, subd. 3
||181.723, subd. 5a
|326B.701, subd. 4
||181.723, subd. 7a
|326B.701, subd. 5
||181.723, subd. 8a
|326B.701, subd. 6
||181.723, subd. 10a
|326B.701, subd. 7
||181.723, subd. 16
|326B.701, subd. 8
Sec. 29. REPEALER.
23.20(a) Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and
23.21178.08, are repealed.
23.22(b) Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5,
23.237, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, are repealed.
23.24EFFECTIVE DATE.This section is effective January 1, 2015.
Renumber the sections in sequence and correct the internal references
Amend the title accordingly