1.1                          A bill for an act 
  1.2             relating to occupations; requiring plumbers to be 
  1.3             licensed; establishing inspection requirements for new 
  1.4             plumbing installations; allowing the commissioner to 
  1.5             charge fees to hire staff; licensing restricted 
  1.6             plumbing contractors; requiring rulemaking; amending 
  1.7             Minnesota Statutes 2000, sections 326.01, by adding a 
  1.8             subdivision; 326.37, subdivision 1, and by adding a 
  1.9             subdivision; and 326.40, subdivision 1; Minnesota 
  1.10            Statutes 2001 Supplement, sections 144.122; and 
  1.11            326.38; proposing coding for new law in Minnesota 
  1.12            Statutes, chapter 326; repealing Minnesota Statutes 
  1.13            2000, section 326.45. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.16  144.122, is amended to read: 
  1.17     144.122 [LICENSE, PERMIT, AND SURVEY FEES.] 
  1.18     (a) The state commissioner of health, by rule, may 
  1.19  prescribe reasonable procedures and fees for filing with the 
  1.20  commissioner as prescribed by statute and for the issuance of 
  1.21  original and renewal permits, licenses, registrations, and 
  1.22  certifications issued under authority of the commissioner.  The 
  1.23  expiration dates of the various licenses, permits, 
  1.24  registrations, and certifications as prescribed by the rules 
  1.25  shall be plainly marked thereon.  Fees may include application 
  1.26  and examination fees and a penalty fee for renewal applications 
  1.27  submitted after the expiration date of the previously issued 
  1.28  permit, license, registration, and certification.  The 
  1.29  commissioner may also prescribe, by rule, reduced fees for 
  2.1   permits, licenses, registrations, and certifications when the 
  2.2   application therefor is submitted during the last three months 
  2.3   of the permit, license, registration, or certification period.  
  2.4   Fees proposed to be prescribed in the rules shall be first 
  2.5   approved by the department of finance.  All fees proposed to be 
  2.6   prescribed in rules shall be reasonable.  The fees shall be in 
  2.7   an amount so that the total fees collected by the commissioner 
  2.8   will, where practical, approximate the cost to the commissioner 
  2.9   in administering the program.  All fees collected shall be 
  2.10  deposited in the state treasury and credited to the state 
  2.11  government special revenue fund unless otherwise specifically 
  2.12  appropriated by law for specific purposes. 
  2.13     (b) The commissioner shall adopt reasonable rules 
  2.14  establishing criteria and procedures for refusal to grant or 
  2.15  renew licenses and registrations, and for suspension and 
  2.16  revocation of licenses and registrations. 
  2.17     (c) The commissioner may refuse to grant or renew licenses 
  2.18  and registrations, or suspend or revoke licenses and 
  2.19  registrations, in accordance with the commissioner's criteria 
  2.20  and procedures as adopted by rule. 
  2.21     (d) The commissioner may charge a fee for voluntary 
  2.22  certification of medical laboratories and environmental 
  2.23  laboratories, and for environmental and medical laboratory 
  2.24  services provided by the department, without complying with 
  2.25  paragraph (a) or chapter 14.  Fees charged for environment and 
  2.26  medical laboratory services provided by the department must be 
  2.27  approximately equal to the costs of providing the services.  
  2.28     (c) (e) The commissioner may develop a schedule of fees for 
  2.29  diagnostic evaluations conducted at clinics held by the services 
  2.30  for children with handicaps program.  All receipts generated by 
  2.31  the program are annually appropriated to the commissioner for 
  2.32  use in the maternal and child health program. 
  2.33     (d) (f) The commissioner shall set license fees for 
  2.34  hospitals and nursing homes that are not boarding care homes at 
  2.35  the following levels: 
  2.36  Joint Commission on Accreditation of Healthcare 
  3.1   Organizations (JCAHO hospitals)  $7,055
  3.2   Non-JCAHO hospitals              $4,680 plus $234 per bed
  3.3   Nursing home                     $183 plus $91 per bed
  3.4      The commissioner shall set license fees for outpatient 
  3.5   surgical centers, boarding care homes, and supervised living 
  3.6   facilities at the following levels: 
  3.7   Outpatient surgical centers      $1,512
  3.8   Boarding care homes              $183 plus $91 per bed
  3.9   Supervised living facilities     $183 plus $91 per bed.
  3.10     (e) (g) Unless prohibited by federal law, the commissioner 
  3.11  of health shall charge applicants the following fees to cover 
  3.12  the cost of any initial certification surveys required to 
  3.13  determine a provider's eligibility to participate in the 
  3.14  Medicare or Medicaid program: 
  3.15  Prospective payment surveys for          $  900
  3.16  hospitals
  3.18  Swing bed surveys for nursing homes      $1,200
  3.20  Psychiatric hospitals                    $1,400
  3.22  Rural health facilities                  $1,100
  3.24  Portable X-ray providers                 $  500
  3.26  Home health agencies                     $1,800
  3.28  Outpatient therapy agencies              $  800
  3.30  End stage renal dialysis providers       $2,100
  3.32  Independent therapists                   $  800
  3.34  Comprehensive rehabilitation             $1,200
  3.35  outpatient facilities
  3.37  Hospice providers                        $1,700
  3.39  Ambulatory surgical providers            $1,800
  3.41  Hospitals                                $4,200
  3.43  Other provider categories or             Actual surveyor costs:
  3.44  additional resurveys required            average surveyor cost x
  3.45  to complete initial certification        number of hours for the
  3.46                                           survey process.
  3.47     These fees shall be submitted at the time of the 
  3.48  application for federal certification and shall not be 
  3.49  refunded.  All fees collected after the date that the imposition 
  3.50  of fees is not prohibited by federal law shall be deposited in 
  3.51  the state treasury and credited to the state government special 
  4.1   revenue fund. 
  4.2      (h) The commissioner shall charge the following fees for 
  4.3   examinations, registrations, licenses, plan reviews, and 
  4.4   inspections: 
  4.5   Plumbing examination                         $ 50
  4.6   Water conditioning examination               $ 50
  4.7   Plumbing bond registration fee               $ 40
  4.8   Water conditioning bond registration fee     $ 40
  4.9   Master plumber's license                     $120
  4.10  Restricted plumbing contractor license       $ 90
  4.11  Journeyman plumber's license                 $ 55
  4.12  Apprentice registration                      $ 25
  4.13  Water conditioning contractor license        $ 70
  4.14  Water conditioning installer license         $ 35
  4.15  Residential inspection fee (each visit)      $ 50
  4.16  Public, commercial, and    Plan review fee   Inspection fee
  4.17  industrial inspections
  4.18     25 or fewer drainage
  4.19     fixture units              $ 50              $  300
  4.20     26 to 50 drainage
  4.21     fixture units              $150              $  900
  4.22     51 to 150 drainage
  4.23     fixture units              $200              $1,200
  4.24     151 to 249 drainage
  4.25     fixture units              $250              $1,500
  4.26     250 or more drainage
  4.27     fixture units              $300              $1,800
  4.28     Callback fee (each visit)                    $  100
  4.29     Plumbing installations that require only fixture 
  4.30  installation or replacement require a minimum of one 
  4.31  inspection.  Residence remodeling involving plumbing 
  4.32  installations require a minimum of two inspections.  New 
  4.33  residential plumbing installations require a minimum of three 
  4.34  inspections.  For purposes of this paragraph, residences of more 
  4.35  than four units are considered commercial. 
  4.36     Sec. 2.  Minnesota Statutes 2000, section 326.01, is 
  4.37  amended by adding a subdivision to read: 
  4.38     Subd. 9a.  [RESTRICTED PLUMBING CONTRACTOR.] A "restricted 
  4.39  plumbing contractor" is any person skilled in the planning, 
  5.1   superintending, and practical installation of plumbing who is 
  5.2   otherwise lawfully qualified to contract for plumbing and 
  5.3   installations and to conduct the business of plumbing, who is 
  5.4   familiar with the laws and rules governing the business of 
  5.5   plumbing, and who performs the plumbing trade in cities and 
  5.6   towns with a population of fewer than 5,000 according to federal 
  5.7   census. 
  5.8      Sec. 3.  Minnesota Statutes 2000, section 326.37, 
  5.9   subdivision 1, is amended to read: 
  5.10     Subdivision 1.  [RULES.] The state commissioner of 
  5.11  health may shall, by rule, prescribe minimum uniform standards 
  5.12  which shall be uniform, and which standards shall thereafter be 
  5.13  effective for all new plumbing installations, including 
  5.14  additions, extensions, alterations, and replacements connected 
  5.15  with any water or sewage disposal system owned or operated by or 
  5.16  for any municipality, institution, factory, office building, 
  5.17  hotel, apartment building, or any other place of business 
  5.18  regardless of location or the population of the city or town in 
  5.19  which located.  Notwithstanding the provisions of Minnesota 
  5.20  Rules, part 4715.3130, as they apply to review of plans and 
  5.21  specifications, the commissioner may allow plumbing 
  5.22  construction, alteration, or extension to proceed without 
  5.23  approval of the plans or specifications by the commissioner. 
  5.24     The commissioner shall administer the provisions of 
  5.25  sections 326.37 to 326.45 326.451 and for such purposes may 
  5.26  employ plumbing inspectors and other assistants. 
  5.27     Sec. 4.  Minnesota Statutes 2000, section 326.37, is 
  5.28  amended by adding a subdivision to read: 
  5.29     Subd. 1a.  [INSPECTION.] All new plumbing installations, 
  5.30  including additions, extensions, alterations, and replacements, 
  5.31  shall be inspected by the commissioner for compliance with 
  5.32  accepted standards of construction for health, safety to life 
  5.33  and property, and compliance with applicable codes.  The 
  5.34  department of health shall have full implementation of its 
  5.35  inspections plan in place and operational July 1, 2005.  This 
  5.36  subdivision does not apply where a political subdivision 
  6.1   requires, by ordinance, plumbing inspections similar to the 
  6.2   requirements of this subdivision. 
  6.3      Sec. 5.  Minnesota Statutes 2001 Supplement, section 
  6.4   326.38, is amended to read: 
  6.5      326.38 [LOCAL REGULATIONS.] 
  6.6      Any city having a system of waterworks or sewerage, or any 
  6.7   town in which reside over 5,000 people exclusive of any 
  6.8   statutory cities located therein, or the metropolitan airports 
  6.9   commission, may, by ordinance, adopt local regulations providing 
  6.10  for plumbing permits, bonds, approval of plans, and inspections 
  6.11  of plumbing, which regulations are not in conflict with the 
  6.12  plumbing standards on the same subject prescribed by the state 
  6.13  commissioner of health.  No city or such town shall prohibit 
  6.14  plumbers licensed by the state commissioner of health from 
  6.15  engaging in or working at the business, except cities and 
  6.16  statutory cities which, prior to April 21, 1933, by ordinance 
  6.17  required the licensing of plumbers.  No city or such town shall 
  6.18  require a license for persons performing building sewer or water 
  6.19  service installation who have completed pipe laying training as 
  6.20  prescribed by the state commissioner of health.  Any city by 
  6.21  ordinance may prescribe regulations, reasonable standards, and 
  6.22  inspections and grant permits to any person, firm, or 
  6.23  corporation engaged in the business of installing water 
  6.24  softeners, who is not licensed as a master plumber or journeyman 
  6.25  plumber by the state commissioner of health, to connect water 
  6.26  softening and water filtering equipment to private residence 
  6.27  water distribution systems, where provision has been previously 
  6.28  made therefor and openings left for that purpose or by use of 
  6.29  cold water connections to a domestic water heater; where it is 
  6.30  not necessary to rearrange, make any extension or alteration of, 
  6.31  or addition to any pipe, fixture or plumbing connected with the 
  6.32  water system except to connect the water softener, and provided 
  6.33  the connections so made comply with minimum standards prescribed 
  6.34  by the state commissioner of health. 
  6.35     Sec. 6.  Minnesota Statutes 2000, section 326.40, 
  6.36  subdivision 1, is amended to read: 
  7.1      Subdivision 1.  [PLUMBERS MUST BE LICENSED IN CERTAIN 
  7.2   CITIES; MASTER AND JOURNEYMAN PLUMBERS MASTER, JOURNEYMAN, AND 
  7.3   RESTRICTED PLUMBING CONTRACTORS; PLUMBING ON ONE'S OWN PREMISES; 
  7.4   RULES FOR EXAMINATION.] In any city now or hereafter having 
  7.5   5,000 or more population, according to the last federal census, 
  7.6   and having a system of waterworks or sewerage, no person, firm, 
  7.7   or corporation shall engage in or work at the business of a 
  7.8   master plumber or journeyman plumber unless licensed to do so by 
  7.9   the state commissioner of health.  No person, firm, or 
  7.10  corporation shall engage in or work at the business of a master 
  7.11  plumber, restricted plumbing contractor, or journeyman plumber 
  7.12  unless licensed to do so by the state commissioner of health 
  7.13  under sections 326.37 to 326.451.  A license is not required for:
  7.14     (1) persons performing building sewer or water service 
  7.15  installation who have completed pipe laying training as 
  7.16  prescribed by the commissioner of health; or 
  7.17     (2) persons selling an appliance plumbing installation 
  7.18  service at point of sale if the installation work is performed 
  7.19  by a plumber licensed under sections 326.37 to 326.451.  
  7.20     A master plumber may also work as a journeyman plumber.  
  7.21  Anyone not so licensed may do plumbing work which complies with 
  7.22  the provisions of the minimum standard prescribed by the state 
  7.23  commissioner of health on premises or that part of premises 
  7.24  owned and actually occupied by the worker as a residence, unless 
  7.25  otherwise forbidden to do so by a local ordinance. 
  7.26     In any such city No person, firm, or corporation shall 
  7.27  engage in the business of installing plumbing nor install 
  7.28  plumbing in connection with the dealing in and selling of 
  7.29  plumbing material and supplies unless at all times a licensed 
  7.30  master plumber or restricted plumbing contractor, who shall be 
  7.31  responsible for proper installation, is in charge of the 
  7.32  plumbing work of the person, firm, or corporation. 
  7.33     The department of health shall prescribe rules, not 
  7.34  inconsistent herewith, for the examination and licensing of 
  7.35  plumbers. 
  7.36     Sec. 7.  [326.402] [RESTRICTED PLUMBING CONTRACTOR 
  8.1   LICENSE.] 
  8.2      Subdivision 1.  [LICENSURE.] The commissioner shall grant a 
  8.3   restricted plumbing contractor license to any person who applies 
  8.4   to the commissioner and provides evidence of having at least two 
  8.5   years of practical plumbing experience in the plumbing trade 
  8.6   preceding application for licensure. 
  8.7      Subd. 2.  [USE OF LICENSE.] A restricted plumbing 
  8.8   contractor may engage in the plumbing trade only in cities and 
  8.9   towns with a population of fewer than 5,000 according to federal 
  8.10  census. 
  8.11     Subd. 3.  [APPLICATION PERIOD.] Applications for restricted 
  8.12  plumbing contractor licenses must be submitted to the 
  8.13  commissioner prior to January 1, 2004. 
  8.14     Subd. 4.  [USE PERIOD FOR RESTRICTED PLUMBING CONTRACTOR 
  8.15  LICENSE.] A restricted plumbing contractor license does not 
  8.16  expire and remains in effect for as long as that person engages 
  8.17  in the plumbing trade. 
  8.18     Subd. 5.  [PROHIBITION OF TRANSFERENCE.] A restricted 
  8.19  plumbing contractor license must not be transferred or sold to 
  8.20  any other person. 
  8.21     Subd. 6.  [RESTRICTED PLUMBING CONTRACTOR LICENSE RENEWAL.] 
  8.22  The commissioner shall adopt rules for renewal of the restricted 
  8.23  plumbing contractor license. 
  8.24     Sec. 8.  [326.451] [INSPECTORS.] 
  8.25     (a) The commissioner shall set all reasonable criteria and 
  8.26  procedures by rule for inspector certification, certification 
  8.27  period, examinations, examination fees, certification fees, and 
  8.28  renewal of certifications. 
  8.29     (b) The commissioner shall adopt reasonable rules 
  8.30  establishing criteria and procedures for refusal to grant or 
  8.31  renew inspector certifications, and for suspension and 
  8.32  revocation of inspector certifications. 
  8.33     (c) The commissioner shall refuse to renew or grant 
  8.34  inspector certifications, or suspend or revoke inspector 
  8.35  certifications, in accordance with the commissioner's criteria 
  8.36  and procedures as adopted by rule. 
  9.1      Sec. 9.  [REVISOR'S INSTRUCTION.] 
  9.2      The revisor of statutes shall change all references to 
  9.3   sections 326.45 to 326.451 in Minnesota Statutes, sections 
  9.4   144.99, 326.44, 326.61, and 326.65. 
  9.5      Sec. 10.  [REPEALER.] 
  9.6      Minnesota Statutes 2000, section 326.45, is repealed. 
  9.7      Sec. 11.  [EFFECTIVE DATE.] 
  9.8      Sections 1 to 10 are effective July 1, 2003.