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SF 887

2nd Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 03/31/2011 11:24am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to economic development; modifying certain economic development,
1.3fees, and licensing provisions; modifying certain occupational continuing
1.4education requirements; clarifying and modifying regulation of medical gas
1.5system and manufactured home provisions; requiring reports; appropriating
1.6money for jobs, economic development, and housing purposes;amending
1.7Minnesota Statutes 2010, sections 116J.035, by adding a subdivision; 116L.3625;
1.8116L.62; 154.06; 154.065, subdivision 2; 154.08; 154.11, subdivision 1; 154.12;
1.9181.723, subdivision 5; 182.6553, subdivision 6; 268.18, subdivisions 2, 2b;
1.10268.199; 298.17; 326B.04, subdivision 2; 326B.091; 326B.098; 326B.13,
1.11subdivision 8; 326B.148, subdivision 1; 326B.42, subdivisions 8, 9, 10, by adding
1.12subdivisions; 326B.435, subdivision 2; 326B.438; 326B.46, subdivisions 1a, 1b,
1.132, 3; 326B.47, subdivisions 1, 3; 326B.49, subdivision 1; 326B.56, subdivision
1.141; 326B.58; 326B.82, subdivisions 2, 3, 7, 9; 326B.821, subdivisions 1, 5, 5a, 6,
1.157, 8, 9, 10, 11, 12, 15, 16, 18, 19, 20, 22, 23; 326B.865; 326B.89, subdivisions
1.166, 8; 327.32, subdivisions 1a, 1b, 1e, 1f, 7; 327.33, subdivision 2; 327C.095,
1.17subdivision 12; 341.321; Laws 2009, chapter 78, article 1, section 18; proposing
1.18coding for new law in Minnesota Statutes, chapter 326B; repealing Minnesota
1.19Statutes 2010, sections 326B.82, subdivisions 4, 6; 326B.821, subdivision 3.
1.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21ARTICLE 1
1.22JOBS, ECONOMIC DEVELOPMENT, AND HOUSING APPROPRIATIONS

1.23
1.24
Section 1. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING
APPROPRIATIONS.
1.25    The amounts shown in this section summarize direct appropriations, by fund, made
1.26in this article.
1.27
2012
2013
Total
1.28
General
$
80,090,000
$
77,758,000
$
157,848,000
1.29
Workforce Development
14,151,000
14,151,000
28,302,000
1.30
Remediation
700,000
700,000
1,400,000
2.1
Workers' Compensation
22,574,000
22,574,000
45,148,000
2.2
Total
$
117,515,000
$
115,183,000
$
232,698,000

2.3
Sec. 2. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING.
2.4    The sums shown in the columns marked "Appropriations" are appropriated to the
2.5agencies and for the purposes specified in this article. The appropriations are from the
2.6general fund, or another named fund, and are available for the fiscal years indicated
2.7for each purpose. The figures "2012" and "2013" used in this article mean that the
2.8appropriations listed under them are available for the fiscal year ending June 30, 2012, or
2.9June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
2.10year 2013. "The biennium" is fiscal years 2012 and 2013.
2.11
APPROPRIATIONS
2.12
Available for the Year
2.13
Ending June 30
2.14
2012
2013

2.15
2.16
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
2.17
Subdivision 1.Total Appropriation
$
53,044,000
$
50,819,000
2.18
Appropriations by Fund
2.19
2012
2013
2.20
General
38,850,000
36,625,000
2.21
Remediation
700,000
700,000
2.22
2.23
Workforce
Development
13,494,000
13,494,000
2.24The amounts that may be spent for each
2.25purpose are specified in the following
2.26subdivisions.
2.27
2.28
Subd. 2.Business and Community
Development
9,166,000
6,941,000
2.29
Appropriations by Fund
2.30
General
8,186,000
5,961,000
2.31
Remediation
700,000
700,000
2.32
2.33
Workforce
Development
280,000
280,000
2.34(a) $700,000 the first year and $700,000 the
2.35second year are from the remediation fund for
2.36contaminated site cleanup and development
3.1grants under Minnesota Statutes, section
3.2116J.554. This appropriation is available
3.3until expended.
3.4(b) $970,000 the first year and $970,000 the
3.5second year are from the general fund for
3.6contaminated site cleanup and development
3.7grants under Minnesota Statutes, section
3.8116J.554.
3.9(c) $1,086,000 the first year and $1,086,000
3.10the second year are from the general fund for
3.11the Minnesota Trade Office.
3.12(d) $150,000 each year is from the general
3.13fund for a grant to WomenVenture for
3.14women's business development programs
3.15and for programs that encourage and assist
3.16women to enter nontraditional careers in the
3.17trades; manual and technical occupations;
3.18science, technology, engineering, and
3.19mathematics-related occupations; and green
3.20jobs. This appropriation may be matched
3.21dollar for dollar with any resources available
3.22from the federal government for these
3.23purposes with priority given to initiatives
3.24that have a goal of increasing by at least ten
3.25percent the number of women in occupations
3.26where women currently comprise less than
3.2725 percent of the workforce.
3.28(e) $75,000 each year is from the general
3.29fund and $40,000 each year is from the
3.30workforce development fund for a grant to
3.31the Metropolitan Economic Development
3.32Association for continuing minority business
3.33development programs in the metropolitan
3.34area. This appropriation must be used for the
3.35sole purpose of providing free or reduced
4.1fee business consulting services to minority
4.2entrepreneurs and contractors.
4.3(f)(1) $425,000 the first year is a onetime
4.4appropriation from the general fund for a
4.5grant to BioBusiness Alliance of Minnesota
4.6for bioscience business development
4.7programs to promote and position the state
4.8as a global leader in bioscience business
4.9activities. These funds may be used to create,
4.10recruit, retain, and expand biobusiness
4.11activity in Minnesota; implement the
4.12destination 2025 statewide plan; update
4.13a statewide assessment of the bioscience
4.14industry and the competitive position of
4.15Minnesota-based bioscience businesses
4.16relative to other states and other nations;
4.17and develop and implement business and
4.18scenario-planning models to create, recruit,
4.19retain, and expand biobusiness activity in
4.20Minnesota.
4.21(2) The BioBusiness Alliance must report
4.22each year by February 15 to the committees
4.23of the house of representatives and the senate
4.24having jurisdiction over bioscience industry
4.25activity in Minnesota on the use of funds;
4.26the number of bioscience businesses and
4.27jobs created, recruited, retained, or expanded
4.28in the state since the last reporting period;
4.29the competitive position of the biobusiness
4.30industry; and utilization rates and results of
4.31the business and scenario-planning models
4.32and outcomes resulting from utilization of
4.33the business and scenario-planning models.
4.34(g) $50,000 the first year is from the general
4.35fund for a grant to the Minnesota Inventors
5.1Congress, of which at least $5,000 must be
5.2used for youth inventors. This is a onetime
5.3appropriation.
5.4(h)(1) $90,000 each year is from the
5.5workforce development fund for a grant
5.6under Minnesota Statutes, section 116J.421,
5.7to the Rural Policy and Development
5.8Center at St. Peter, Minnesota. The grant
5.9shall be used for research and policy
5.10analysis on emerging economic and social
5.11issues in rural Minnesota, to serve as a
5.12policy resource center for rural Minnesota
5.13communities, to encourage collaboration
5.14across higher education institutions, to
5.15provide interdisciplinary team approaches
5.16to research and problem-solving in rural
5.17communities, and to administer overall
5.18operations of the center.
5.19(2) The grant shall be provided upon the
5.20condition that each state-appropriated
5.21dollar be matched with a nonstate dollar.
5.22Acceptable matching funds are nonstate
5.23contributions that the center has received and
5.24have not been used to match previous state
5.25grants. Any funds not spent the first year are
5.26available the second year.
5.27(i)(1) $150,000 each year is appropriated
5.28from the workforce development fund for
5.29grants of $50,000 to eligible organizations
5.30each year to assist in the development of
5.31entrepreneurs and small businesses. Each
5.32state grant dollar must be matched with $1
5.33of nonstate funds. Any balance in the first
5.34year does not cancel but is available in the
5.35second year.
6.1(2) Three grants must be awarded to
6.2continue or to develop a program. One
6.3grant must be awarded to the Riverbend
6.4Center for Entrepreneurial Facilitation
6.5in Blue Earth County, and two to other
6.6organizations serving Faribault and Martin
6.7Counties. Grant recipients must report to the
6.8commissioner by February 1 of each year
6.9that the organization receives a grant with the
6.10number of customers served; the number of
6.11businesses started, stabilized, or expanded;
6.12the number of jobs created and retained; and
6.13business success rates. The commissioner
6.14must report to the house of representatives
6.15and senate committees with jurisdiction
6.16over economic development finance on the
6.17effectiveness of these programs for assisting
6.18in the development of entrepreneurs and
6.19small businesses.
6.20(j) $1,000,000 the first year is from the
6.21general fund for the Minnesota Investment
6.22Fund under Minnesota Statutes, section
6.23116J.8731. The appropriation is available
6.24until spent. This is a onetime appropriation
6.25and is not added to the agency's base.
6.26(k) $750,000 the first year is from the general
6.27fund for the redevelopment account under
6.28Minnesota Statutes, section 116J.571. This
6.29is a onetime appropriation and is available
6.30until spent.
6.31
Subd. 3.Workforce Development
43,020,000
43,020,000
6.32
Appropriations by Fund
6.33
General
29,806,000
29,806,000
6.34
6.35
Workforce
Development
13,214,000
13,214,000
7.1(a) $3,728,000 each year is from the general
7.2fund for the Minnesota job skills partnership
7.3program under Minnesota Statutes, sections
7.4116L.01 to 116L.17. If the appropriation for
7.5either year is insufficient, the appropriation
7.6for the other year is available. This
7.7appropriation is available until spent.
7.8(b) $10,800,000 each year is from the general
7.9fund for the state's vocational rehabilitation
7.10program under Minnesota Statutes, chapter
7.11268A.
7.12(c) $5,928,000 each year is from the general
7.13fund for the state services for the blind
7.14activities.
7.15(d) $2,150,000 each year is from the general
7.16fund for grants to centers for independent
7.17living under Minnesota Statutes, section
7.18268A.11.
7.19(e) $315,000 each year is from the general
7.20fund and $105,000 each year is from the
7.21workforce development fund for a grant
7.22under Minnesota Statutes, section 116J.8747,
7.23to Twin Cities RISE! to provide training to
7.24hard-to-train individuals. Funds unexpended
7.25in the first year are available for expenditure
7.26in the second year.
7.27(f) $100,000 each year is from the general
7.28fund for a grant to Northern Connections
7.29in Perham to implement and operate a
7.30workforce program that provides one-stop
7.31supportive services to individuals as they
7.32transition into the workforce.
7.33(g) $5,091,000 each year is from the general
7.34fund and $6,527,000 each year is from the
7.35workforce development fund for extended
8.1employment services for persons with severe
8.2disabilities or related conditions under
8.3Minnesota Statutes, section 268A.15. Of
8.4the general fund appropriation, $125,000
8.5each year is to supplement funds paid for
8.6wage incentives for the community support
8.7fund established in Minnesota Rules, part
8.83300.2045.
8.9(h) $1,479,000 each year is from the general
8.10fund for grants to programs that provide
8.11employment support services to persons with
8.12mental illness under Minnesota Statutes,
8.13sections 268A.13 and 268A.14. Grants
8.14may be used for special projects for young
8.15people with mental illness transitioning from
8.16school to work and people with serious
8.17mental illness receiving services through
8.18a mental health court or civil commitment
8.19court. Special projects must demonstrate
8.20interagency collaboration.
8.21(i) $135,000 each year is from the general
8.22fund and $163,000 each year is from the
8.23workforce development fund for a grant
8.24under Minnesota Statutes, section 268A.03,
8.25to Rise, Inc. for the Minnesota Employment
8.26Center for People Who are Deaf or Hard of
8.27Hearing. Money not expended the first year
8.28is available the second year.
8.29(j) $80,000 each year is from the general fund
8.30and $160,000 each year is from the workforce
8.31development fund for a grant to Lifetrack
8.32Resources for its immigrant and refugee
8.33collaborative program, including those
8.34related to job-seeking skills and workplace
8.35orientation, intensive job development,
9.1functional work English, and on-site job
9.2coaching. This appropriation may also be
9.3used in Rochester.
9.4(k) $1,100,000 each year is from the
9.5workforce development fund for the
9.6Opportunities Industrialization Center
9.7programs. The OIC state council must
9.8not be colocated with the Department of
9.9Employment and Economic Development.
9.10(l) $2,450,000 the first year is a onetime
9.11appropriation from the workforce
9.12development fund for the Minnesota youth
9.13program under Minnesota Statutes, sections
9.14116L.56 and 116L.561.
9.15(m) $630,000 the first year is a onetime
9.16appropriation from the workforce
9.17development fund for grants for the
9.18Minneapolis summer youth employment
9.19program. The commissioner shall establish
9.20criteria for awarding the grant.
9.21Of this appropriation, 25 percent is for a grant
9.22to the Minneapolis learn-to-earn summer
9.23youth employment program.
9.24(n) $750,000 the first year is a onetime
9.25appropriation from the workforce
9.26development fund for a grant to the
9.27Minnesota Alliance of Boys and Girls
9.28Clubs to administer a statewide project
9.29of youth jobs skills development. This
9.30project, which may have career guidance
9.31components, including health and life skills,
9.32is to encourage, train, and assist youth in
9.33job-seeking skills, workplace orientation,
9.34and job-site knowledge through coaching.
9.35This grant requires a 25 percent match
10.1from nonstate resources. The Alliance may
10.2work collaboratively with the Minneapolis
10.3Park Board for summer youth employment
10.4programming.
10.5(o) $391,000 the first year is a onetime
10.6appropriation from the workforce
10.7development fund for grants to fund summer
10.8youth employment in St. Paul. The
10.9commissioner shall establish criteria for
10.10awarding the grant.
10.11(p) $700,000 the first year is a onetime
10.12appropriation from the workforce
10.13development fund for the youthbuild
10.14program under Minnesota Statutes, sections
10.15116L.361 to 116L.366.
10.16(q) $238,000 the first year is a onetime
10.17appropriation from the workforce
10.18development fund for grants to provide
10.19interpreters for a regional transition program
10.20that specializes in providing culturally
10.21appropriate transition services leading to
10.22employment for deaf, hard-of-hearing, and
10.23deafblind students.
10.24(r) $5,159,000 the second year is from
10.25the workforce development fund for the
10.26youth workforce development competitive
10.27grant pilot program. The commissioner
10.28shall develop and implement a competitive
10.29grant program to provide workforce
10.30training services to youth in Minnesota.
10.31Of this amount, up to five percent is for
10.32administering and monitoring this program.
10.33The commissioner shall report by October
10.3415, 2011, to the standing committees of the
10.35senate and house of representatives having
11.1jurisdiction over workforce development
11.2issues on program parameters and criteria
11.3developed for the competitive grants under
11.4this paragraph. This appropriation is added
11.5to the agency's base.
11.6
Subd. 4.State-Funded Administration
858,000
858,000

11.7
Sec. 4. HOUSING FINANCE AGENCY
11.8
Subdivision 1.Total Appropriation
$
36,251,000
$
36,251,000
11.9The amounts that may be spent for each
11.10purpose are specified in the following
11.11subdivisions.
11.12This appropriation is for transfer to the
11.13housing development fund for the programs
11.14specified. Except as otherwise indicated, this
11.15transfer is part of the agency's permanent
11.16budget base.
11.17
Subd. 2.Challenge Program
7,059,000
7,059,000
11.18For the economic development and housing
11.19challenge program under Minnesota
11.20Statutes, section 462A.33. Of this amount,
11.21$1,208,000 each year shall be made available
11.22during the first eight months of the fiscal
11.23year exclusively for housing projects for
11.24American Indians. Any funds not committed
11.25to housing projects for American Indians in
11.26the first eight months of the fiscal year shall
11.27be available for any eligible activity under
11.28Minnesota Statutes, section 462A.33.
11.29
Subd. 3.Housing Trust Fund
8,305,000
8,305,000
11.30For deposit in the housing trust fund account,
11.31for the purposes provided under Minnesota
11.32Statutes, section 462A.201.
11.33
Subd. 4.Rental Assistance for Mentally Ill
2,638,000
2,638,000
12.1For the rental housing assistance program for
12.2persons with a mental illness or families with
12.3an adult member with a mental illness under
12.4Minnesota Statutes, section 462A.2097.
12.5
Subd. 5.Family Homeless Prevention
7,465,000
7,465,000
12.6For the family homeless prevention and
12.7assistance programs under Minnesota
12.8Statutes, section 462A.204.
12.9
Subd. 6.Home Ownership Assistance Fund
797,000
797,000
12.10For the home ownership assistance program
12.11under Minnesota Statutes, section 462A.21,
12.12subdivision 8. The annual interest rate on
12.13loans provided under Minnesota Statutes,
12.14section 462A.21, subdivision 8, must equal
12.15two percent.
12.16
Subd. 7.Affordable Rental Investment Fund
6,813,000
6,813,000
12.17(a) For the affordable rental investment fund
12.18program under Minnesota Statutes, section
12.19462A.21, subdivision 8b. The appropriation
12.20is to finance the acquisition, rehabilitation,
12.21and debt restructuring of federally assisted
12.22rental property and for making equity
12.23take-out loans under Minnesota Statutes,
12.24section 462A.05, subdivision 39.
12.25(b) The owner of federally assisted rental
12.26property must agree to participate in
12.27the applicable federally assisted housing
12.28program and to extend any existing
12.29low-income affordability restrictions on the
12.30housing for the maximum term permitted.
12.31The owner must also enter into an agreement
12.32that gives local units of government,
12.33housing and redevelopment authorities,
12.34and nonprofit housing organizations the
13.1right of first refusal if the rental property
13.2is offered for sale. Priority must be given
13.3among comparable federally assisted rental
13.4properties to properties with the longest
13.5remaining term under an agreement for
13.6federal assistance. Priority must also be
13.7given among comparable rental housing
13.8developments to developments that are or
13.9will be owned by local government units, a
13.10housing and redevelopment authority, or a
13.11nonprofit housing organization.
13.12(c) The appropriation also may be used to
13.13finance the acquisition, rehabilitation, and
13.14debt restructuring of existing supportive
13.15housing properties. For purposes of this
13.16subdivision, "supportive housing" means
13.17affordable rental housing with links to
13.18services necessary for individuals, youth, and
13.19families with children to maintain housing
13.20stability.
13.21
Subd. 8.Housing Rehabilitation
2,449,000
2,449,000
13.22For the housing rehabilitation program
13.23under Minnesota Statutes, section 462A.05,
13.24subdivision 14, for rental housing
13.25developments.
13.26
13.27
Subd. 9.Homeownership Education,
Counseling, and Training
600,000
600,000
13.28For the homeownership education,
13.29counseling, and training program under
13.30Minnesota Statutes, section 462A.209.
13.31Notwithstanding Minnesota Statutes, section
13.32462A.209, subdivision 7, paragraph (b),
13.33more than one-half of the funds awarded
13.34for foreclosure prevention and assistance
14.1activities may be used for mortgage or
14.2financial counseling services.
14.3
Subd. 10.Capacity-Building Grants
125,000
125,000
14.4For nonprofit capacity-building grants
14.5under Minnesota Statutes, section 462A.21,
14.6subdivision 3b.

14.7
14.8
Sec. 5. DEPARTMENT OF LABOR AND
INDUSTRY
14.9
Subdivision 1.Total Appropriation
$
22,328,000
$
22,328,000
14.10
Appropriations by Fund
14.11
2012
2013
14.12
General
800,000
800,000
14.13
14.14
Workers'
Compensation
20,871,000
20,871,000
14.15
14.16
Workforce
Development
657,000
657,000
14.17The amounts that may be spent for each
14.18purpose are specified in the following
14.19subdivisions.
14.20
Subd. 2.Workers' Compensation
14,832,000
14,832,000
14.21This appropriation is from the workers'
14.22compensation fund.
14.23$200,000 each year is for grants to the
14.24Vinland Center for rehabilitation services.
14.25Grants shall be distributed as the department
14.26refers injured workers to the Vinland Center
14.27for rehabilitation services.
14.28
Subd. 3.Labor Standards and Apprenticeship
1,457,000
1,457,000
14.29
Appropriations by Fund
14.30
General
800,000
800,000
14.31
14.32
Workforce
Development
657,000
657,000
14.33$657,000 each year is appropriated from
14.34the workforce development fund for the
15.1apprenticeship program under Minnesota
15.2Statutes, chapter 178.
15.3
Subd. 4.General Support
6,039,000
6,039,000
15.4This appropriation is from the workers'
15.5compensation fund.

15.6
15.7
Sec. 6. BUREAU OF MEDIATION
SERVICES
15.8
Subdivision 1.Total Appropriation
$
1,525,000
$
1,525,000
15.9The amounts that may be spent for each
15.10purpose are specified in the following
15.11subdivisions.
15.12
Subd. 2.Mediation Services
1,471,000
1,471,000
15.13
15.14
Subd. 3.Labor Management Cooperation
Grants
54,000
54,000
15.15$54,000 each year is for grants to area labor
15.16management committees. Grants may be
15.17awarded for a 12-month period beginning
15.18July 1 each year. Any unencumbered balance
15.19remaining at the end of the first year does not
15.20cancel but is available for the second year.

15.21
15.22
Sec. 7. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,703,000
$
1,703,000
15.23This appropriation is from the workers'
15.24compensation fund.

15.25
Sec. 8. BOARD OF ACCOUNTANCY
$
480,000
$
480,000

15.26
15.27
15.28
15.29
Sec. 9. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
774,000
$
774,000

15.30
15.31
Sec. 10. BOARD OF COSMETOLOGIST
EXAMINERS
$
1,046,000
$
1,046,000

15.32
Sec. 11. BOARD OF BARBER EXAMINERS
$
257,000
$
257,000

16.1
16.2
Sec. 12. MINNESOTA SCIENCE AND
TECHNOLOGY AUTHORITY
$
107,000
$
0
16.3This is a onetime appropriation.

16.4
Sec. 13. TRANSFERS
16.5Prior to June 30, 2012, the commissioner
16.6of iron range resources shall transfer
16.7$60,000,000 from the Douglas J. Johnson
16.8Economic Protection Trust to the general
16.9fund. This is a onetime transfer.
16.10The unexpended balance, estimated to
16.11be $1,575,000, of funds collected for
16.12unemployment insurance state administration
16.13under Minnesota Statutes, section 268.18,
16.14subdivision 2, is transferred to the general
16.15fund.

16.16ARTICLE 2
16.17ECONOMIC DEVELOPMENT AND MISCELLANEOUS PROVISIONS

16.18    Section 1. Minnesota Statutes 2010, section 116J.035, is amended by adding a
16.19subdivision to read:
16.20    Subd. 7. Monitoring pass-through grant recipients. The commissioner shall
16.21monitor the activities and outcomes of programs and services funded by legislative
16.22appropriations and administered by the department on a pass-through basis. Unless
16.23amounts are otherwise appropriated for administrative costs, the commissioner may
16.24retain up to five percent of the amount appropriated to the department for grants to
16.25pass-through entities. Amounts retained are deposited to a special revenue account and
16.26are appropriated to the commissioner for costs incurred in administering and monitoring
16.27the pass-through grants.

16.28    Sec. 2. Minnesota Statutes 2010, section 116L.3625, is amended to read:
16.29116L.3625 ADMINISTRATIVE COSTS.
16.30The commissioner may use up to five percent of the biennial appropriation for
16.31Youthbuild from the general fund to pay costs incurred by the department in administering
16.32Youthbuild during the biennium.

17.1    Sec. 3. Minnesota Statutes 2010, section 116L.62, is amended to read:
17.2116L.62 DISTRIBUTION AND USE OF STATE MONEY.
17.3The commissioner shall distribute the money appropriated for:
17.4(a) comprehensive job training and related services or job opportunities programs
17.5for economically disadvantaged, unemployed, and underemployed individuals, including
17.6persons of limited English speaking ability, through opportunities industrialization
17.7centers; and
17.8(b) the establishment and operation in Minnesota of these centers.
17.9The commissioner may use up to five percent of the appropriation for opportunities
17.10industrialization center programs to pay costs incurred by the department in administering
17.11the programs.
17.12Comprehensive job training and related services include: recruitment, counseling,
17.13remediation, motivational prejob training, vocational training, job development, job
17.14placement, and other appropriate services enabling individuals to secure and retain
17.15employment at their maximum capacity.

17.16    Sec. 4. Minnesota Statutes 2010, section 154.06, is amended to read:
17.17154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
17.18REGISTERED APPRENTICE.
17.19    Subdivision 1. Qualifications; duration or registration. (a) A person is qualified
17.20to receive a certificate of registration as a registered apprentice:
17.21(1) who has completed at least ten grades of an approved school;
17.22(2) who has graduated from a barber school approved by the board; and
17.23(3) who has passed an examination conducted by the board to determine fitness to
17.24practice as a registered apprentice.
17.25(b) An applicant for a certificate of registration to practice as an apprentice who fails
17.26to pass the examination conducted by the board is required to complete a further course
17.27of study of at least 500 hours, of not more than eight hours in any one working day,
17.28in a barber school approved by the board.
17.29(c) A certificate of registration of an apprentice shall be valid for four years from the
17.30date the certificate of registration is issued by the board and shall not be renewed. During
17.31the four-year period the certificate of registration shall remain in full force and effect only
17.32if the apprentice complies with all the provisions of sections 154.001, 154.002, 154.003,
17.33154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including the payment of
17.34an annual fee, and the rules of the board.
18.1    Subd. 2. Limited extension of registration. (a) If a registered apprentice, during
18.2the term in which the certificate of registration is in effect, enters full-time active duty in
18.3the armed forces of the United States of America, the expiration date of the certificate
18.4of registration shall be extended by a period of time equal to the period or periods of
18.5active duty.
18.6(b) The expiration date of a certificate issued to a person while incarcerated shall be
18.7extended once so that it expires four years from the date of first release from a correctional
18.8facility after the person becomes a registered apprentice. This paragraph applies when a
18.9person graduates from a barber school approved by the board and is issued a certificate of
18.10registration while incarcerated by the Department of Corrections or the Federal Bureau
18.11of Prisons.

18.12    Sec. 5. Minnesota Statutes 2010, section 154.065, subdivision 2, is amended to read:
18.13    Subd. 2. Qualifications. A person is qualified to receive a certificate of registration
18.14as an instructor of barbering who:
18.15(1) is a graduate from an approved high school, or its equivalent, as determined by
18.16examination by the Department of Education;
18.17(2) has qualified for a teacher's or instructor's vocational certificate; successfully
18.18completed instructor barber training from a board-approved program of not less than
18.1940 clock hours, or completed a college or university program resulting in a technical
18.20or vocational education certificate or its equivalent, issued by an accredited college or
18.21university and approved by the board;
18.22(3) is currently a registered barber in this state and has at least three years experience
18.23as a registered barber in this state, or its equivalent as determined by the board; and
18.24(4) has passed an examination conducted by the board to determine fitness to
18.25instruct in barbering.
18.26A certificate of registration under this section is provisional until a teacher's or
18.27instructor's vocational certificate has been issued by the Department of Education. A
18.28provisional certificate of registration is valid for 30 days and is not renewable.

18.29    Sec. 6. Minnesota Statutes 2010, section 154.08, is amended to read:
18.30154.08 APPLICATION; FEE.
18.31Each applicant for an examination shall:
18.32(1) make application to the Board of Barber Examiners on blank forms prepared and
18.33furnished by it, the application to contain proof under the applicant's oath of the particular
18.34qualifications and identity of the applicant;
19.1(2) furnish to the board two five-inch x three-inch signed photographs of the
19.2applicant, one to accompany the application and one to be returned to the applicant,
19.3to be presented to the board when the applicant appears for examination; present a
19.4government-issued picture identification as proof of identity when the applicant appears
19.5for examination; and
19.6(3) pay to the board the required fee.

19.7    Sec. 7. Minnesota Statutes 2010, section 154.11, subdivision 1, is amended to read:
19.8    Subdivision 1. Examination of nonresidents. A person who meets all of the
19.9requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
19.10154.161 , 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate
19.11of registration, or an equivalent as a practicing barber or instructor of barbering from
19.12another state or country which in the discretion of the board has substantially the same
19.13requirements for registering barbers and instructors of barbering as required by sections
19.14154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or
19.15can prove by sworn affidavits practice as a barber or instructor of barbering in another
19.16state or country for at least five years immediately prior to making application in this state,
19.17shall, upon payment of the required fee, be issued a certificate of registration without
19.18examination, provided that the other state or country grants the same privileges to holders
19.19of Minnesota certificates of registration.

19.20    Sec. 8. Minnesota Statutes 2010, section 154.12, is amended to read:
19.21154.12 EXAMINATION OF NONRESIDENT APPRENTICES.
19.22A person who meets all of the requirements for registration as a barber in sections
19.23154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and
19.24who has a license, a certificate of registration, or its equivalent as an apprentice in a state
19.25or country which in the discretion of the board has substantially the same requirements for
19.26registration as an apprentice as is provided by sections 154.001, 154.002, 154.003, 154.01
19.27to 154.161, 154.19 to 154.21, and 154.24 to 154.26, shall, upon payment of the required
19.28fee, be issued a certificate of registration without examination, provided that the other state
19.29or country grants the same privileges to holders of Minnesota certificates of registration.

19.30    Sec. 9. Minnesota Statutes 2010, section 268.18, subdivision 2, is amended to read:
19.31    Subd. 2. Overpayment because of fraud. (a) Any applicant who receives
19.32unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose
19.33any material fact, or who makes a false statement or representation without a good faith
20.1belief as to the correctness of the statement or representation, has committed fraud. After
20.2the discovery of facts indicating fraud, the commissioner must make a determination
20.3that the applicant obtained unemployment benefits by fraud and that the applicant must
20.4promptly repay the unemployment benefits to the trust fund. In addition, the commissioner
20.5must assess a penalty equal to 40 percent of the amount fraudulently obtained. This
20.6penalty is in addition to penalties under section 268.182.
20.7    (b) Unless the applicant files an appeal within 20 calendar days after the sending
20.8of the determination of overpayment by fraud to the applicant by mail or electronic
20.9transmission, the determination is final. Proceedings on the appeal are conducted in
20.10accordance with section 268.105.
20.11    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest
20.12assessed, the total due may be collected by the methods allowed under state and federal
20.13law. A determination of overpayment by fraud must state the methods of collection the
20.14commissioner may use to recover the overpayment. Money received in repayment of
20.15fraudulently obtained unemployment benefits, penalties, and interest is first applied to the
20.16unemployment benefits overpaid, then to the penalty amount due, then to any interest due.
20.1762.5 percent of the Payments made toward the penalty are credited to the contingent
20.18account and 37.5 percent credited to the administration account.
20.19    (d) If an applicant has been overpaid unemployment benefits under the law of
20.20another state because of fraud and that state certifies that the applicant is liable to repay
20.21the unemployment benefits and requests the commissioner to recover the overpayment,
20.22the commissioner may offset from future unemployment benefits otherwise payable the
20.23amount of overpayment.
20.24    (e) Unemployment benefits paid for weeks more than four years before the date of a
20.25determination of overpayment by fraud issued under this subdivision are not considered
20.26overpaid unemployment benefits.

20.27    Sec. 10. Minnesota Statutes 2010, section 268.18, subdivision 2b, is amended to read:
20.28    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained, and
20.29any penalty amounts assessed under subdivision 2, the commissioner must assess interest
20.30at the rate of 1-1/2 percent per month on any amount that remains unpaid beginning
20.3130 calendar days after the date of the determination of overpayment by fraud. A
20.32determination of overpayment by fraud must state that interest will be assessed.
20.33    (b) If the determination did not state that interest will be assessed, interest is assessed
20.34beginning 30 calendar days after notification, by mail or electronic transmission, to the
20.35applicant that interest is now assessed.
21.1    (c) Interest payments under this section are credited to the administration contingent
21.2account.

21.3    Sec. 11. Minnesota Statutes 2010, section 268.199, is amended to read:
21.4268.199 CONTINGENT ACCOUNT.
21.5    (a) There is created in the state treasury a special account, to be known as the
21.6contingent account, that does not lapse nor revert to any other fund or account. This
21.7account consists of all money collected under this chapter that is required to be placed
21.8in this account and any interest earned on the account. All money in this account is
21.9appropriated and available for administration of the Minnesota unemployment insurance
21.10program unless otherwise appropriated by session law.
21.11    (b) All money in this account must be deposited, administered, and disbursed in the
21.12same manner and under the same conditions and requirements as is provided by law for
21.13the other special accounts in the state treasury.
21.14(c) Beginning in fiscal year 2012 and each fiscal year thereafter, all money in the
21.15account shall be transferred to the general fund before the closing of the fiscal year.

21.16    Sec. 12. Minnesota Statutes 2010, section 298.17, is amended to read:
21.17298.17 OCCUPATION TAXES TO BE APPORTIONED.
21.18All occupation taxes paid by persons, copartnerships, companies, joint stock
21.19companies, corporations, and associations, however or for whatever purpose organized,
21.20engaged in the business of mining or producing iron ore or other ores, when collected
21.21shall be apportioned and distributed in accordance with the Constitution of the state of
21.22Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited
21.23in the state treasury and credited to the general fund of which four-ninths shall be used
21.24for the support of elementary and secondary schools; and ten percent of the proceeds of
21.25the tax imposed by this section shall be deposited in the state treasury and credited to the
21.26general fund for the general support of the university. Of the moneys apportioned to the
21.27general fund by this section there is annually appropriated and credited to the Iron Range
21.28Resources and Rehabilitation Board account in the special revenue fund an amount equal
21.29to that which would have been generated by a 1.5 cent tax imposed by section 298.24 on
21.30each taxable ton produced in the preceding calendar year, to be expended for the purposes
21.31of section 298.22. The money appropriated pursuant to this section shall be used (1)
21.32to provide environmental development grants to local governments located within any
21.33county in region 3 as defined in governor's executive order number 60, issued on June
21.3412, 1970, which does not contain a municipality qualifying pursuant to section 273.134,
22.1paragraph (b)
, or (2) to provide economic development loans or grants to businesses
22.2located within any such county, provided that the county board or an advisory group
22.3appointed by the county board to provide recommendations on economic development
22.4shall make recommendations to the Iron Range Resources and Rehabilitation Board
22.5regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board
22.6account shall be made by May 15 annually.
22.7Of the money allocated to Koochiching County, one-third must be paid to the
22.8Koochiching County Economic Development Commission.

22.9    Sec. 13. Minnesota Statutes 2010, section 341.321, is amended to read:
22.10341.321 FEE SCHEDULE.
22.11    (a) The fee schedule for professional licenses issued by the commission is as follows:
22.12    (1) referees, $25 $45 for each initial license and each renewal;
22.13    (2) promoters, $400 for each initial license and each renewal;
22.14    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
22.15    (4) trainers, $25 $45 for each initial license and each renewal;
22.16    (5) ring announcers, $25 $45 for each initial license and each renewal;
22.17    (6) seconds, $25 $45 for each initial license and each renewal;
22.18    (7) timekeepers, $25 $45 for each initial license and each renewal;
22.19    (8) combatants, $25 $45 for each initial license and each renewal;
22.20    (9) managers, $25 $45 for each initial license and each renewal; and
22.21    (10) ringside physicians, $25 $45 for each initial license and each renewal.
22.22In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
22.232, if applicable, an individual who applies for a combatant professional license on the
22.24same day the combative sporting event is held shall pay a late fee of $100 plus the original
22.25license fee of $45 at the time the application is submitted.
22.26    (b) The fee schedule for amateur licenses issued by the commission is as follows:
22.27    (1) referees, $10 $45 for each initial license and each renewal;
22.28    (2) promoters, $100 $400 for each initial license and each renewal;
22.29    (3) judges and knockdown judges, $10 $45 for each initial license and each renewal;
22.30    (4) trainers, $10 $45 for each initial license and each renewal;
22.31    (5) ring announcers, $10 $45 for each initial license and each renewal;
22.32    (6) seconds, $10 $45 for each initial license and each renewal;
22.33    (7) timekeepers, $10 $45 for each initial license and each renewal;
22.34    (8) combatant, $10 $25 for each initial license and each renewal;
22.35    (9) managers, $10 $45 for each initial license and each renewal; and
23.1    (10) ringside physicians, $10 $45 for each initial license and each renewal.
23.2    (c) The commission shall establish a contest fee for each combative sport contest.
23.3The professional combative sport contest fee is $1,500 per event or not more than four
23.4percent of the gross ticket sales, whichever is greater, as determined by the commission
23.5when the combative sport contest is scheduled, except that the amateur combative sport
23.6contest fee shall be $150 $500 or not more than four percent of the gross ticket sales,
23.7whichever is greater. The commission shall consider the size and type of venue when
23.8establishing a contest fee. The commission may establish the maximum number of
23.9complimentary tickets allowed for each event by rule. An A professional or amateur
23.10combative sport contest fee is nonrefundable.
23.11    (d) All fees and penalties collected by the commission must be deposited in the
23.12commission account in the special revenue fund.

23.13    Sec. 14. Laws 2009, chapter 78, article 1, section 18, is amended to read:
23.14
23.15
Sec. 18. COMBATIVE SPORTS
COMMISSION
$
80,000
$
80,000
23.16This is a onetime appropriation. The
23.17Combative Sports Commission expires on
23.18July 1, 2011, unless the commissioner of
23.19finance determines that the commission's
23.20projected expenditures for the fiscal biennium
23.21ending June 30, 2013, will not exceed the
23.22commission's projected revenues for the
23.23fiscal biennium ending June 30, 2013, from
23.24fees and penalties authorized in Minnesota
23.25Statutes 2008, chapter 341.

23.26ARTICLE 3
23.27LABOR AND INDUSTRY

23.28    Section 1. Minnesota Statutes 2010, section 181.723, subdivision 5, is amended to read:
23.29    Subd. 5. Application. To obtain an independent contractor exemption certificate,
23.30the individual must submit, in the manner prescribed by the commissioner, a complete
23.31application and the certificate fee required under subdivision 14.
23.32    (a) A complete application must include all of the following information:
23.33    (1) the individual's full name;
24.1    (2) the individual's residence address and telephone number;
24.2    (3) the individual's business name, address, and telephone number;
24.3    (4) the services for which the individual is seeking an independent contractor
24.4exemption certificate;
24.5    (5) the individual's Social Security number;
24.6    (6) the individual's or the individual's business federal employer identification
24.7number, if a number has been issued to the individual or the individual's business;
24.8    (7) any information or documentation that the commissioner requires by rule that
24.9will assist the department in determining whether to grant or deny the individual's
24.10application; and
24.11    (8) the individual's sworn statement that the individual meets all of the following
24.12conditions:
24.13    (i) maintains a separate business with the individual's own office, equipment,
24.14materials, and other facilities;
24.15    (ii) holds or has applied for a federal employer identification number or has filed
24.16business or self-employment income tax returns with the federal Internal Revenue Service
24.17if the person has performed services in the previous year for which the individual is
24.18seeking the independent contractor exemption certificate;
24.19    (iii) operates under contracts to perform specific services for specific amounts of
24.20money and under which the individual controls the means of performing the services;
24.21    (iv) incurs the main expenses related to the service that the individual performs
24.22under contract;
24.23    (v) is responsible for the satisfactory completion of services that the individual
24.24contracts to perform and is liable for a failure to complete the service;
24.25    (vi) receives compensation for service performed under a contract on a commission
24.26or per-job or competitive bid basis and not on any other basis;
24.27    (vii) may realize a profit or suffer a loss under contracts to perform service;
24.28    (viii) has continuing or recurring business liabilities or obligations; and
24.29    (ix) the success or failure of the individual's business depends on the relationship of
24.30business receipts to expenditures.
24.31    (b) Individuals who are applying for or renewing a residential building contractor or
24.32residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81,
24.33326B.815, 326B.821
to 326B.86, 326B.87 to 326B.885, and 327B.041, and any rules
24.34promulgated pursuant thereto, may simultaneously apply for or renew an independent
24.35contractor exemption certificate. The commissioner shall create an application form
24.36that allows for the simultaneous application for both a residential building contractor
25.1or residential remodeler license and an independent contractor exemption certificate.
25.2If individuals simultaneously apply for or renew a residential building contractor or
25.3residential remodeler license and an independent contractor exemption certificate using
25.4the form created by the commissioner, individuals shall only be required to provide, in
25.5addition to the information required by section 326B.83 and rules promulgated pursuant
25.6thereto, the sworn statement required by paragraph (a), clause (8), and any additional
25.7information required by this subdivision that is not also required by section 326B.83
25.8and any rules promulgated thereto. When individuals submit a simultaneous application
25.9on the form created by the commissioner for both a residential building contractor or
25.10residential remodeler license and an independent contractor exemption certificate, the
25.11application fee shall be $150. An independent contractor exemption certificate that is in
25.12effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by
25.13the commissioner or canceled by the individual.
25.14    (c) Within 30 days of receiving a complete application and the certificate fee, the
25.15commissioner must either grant or deny the application. The commissioner may deny
25.16an application for an independent contractor exemption certificate if the individual has
25.17not submitted a complete application and certificate fee or if the individual does not
25.18meet all of the conditions for holding the independent contractor exemption certificate.
25.19The commissioner may revoke an independent contractor exemption certificate if the
25.20commissioner determines that the individual no longer meets all of the conditions for
25.21holding the independent contractor exemption certificate, commits any of the actions
25.22set out in subdivision 7, or fails to cooperate with a department investigation into the
25.23continued validity of the individual's certificate. Once issued, an independent contractor
25.24exemption certificate remains in effect for four years unless:
25.25    (1) revoked by the commissioner; or
25.26    (2) canceled by the individual.
25.27    (d) If the department denies an individual's original or renewal application for
25.28an independent contractor exemption certificate or revokes an independent contractor
25.29exemption certificate, the commissioner shall issue to the individual an order denying or
25.30revoking the certificate. The commissioner may issue an administrative penalty order to
25.31an individual or person who commits any of the actions set out in subdivision 7. The
25.32commissioner may file and enforce the unpaid portion of a penalty as a judgment in
25.33district court without further notice or additional proceedings.
25.34    (e) An individual or person to whom the commissioner issues an order under
25.35paragraph (d) shall have 30 days after service of the order to request a hearing. The
25.36request for hearing must be in writing and must be served on or faxed to the commissioner
26.1at the address or facsimile number specified in the order by the 30th day after service of
26.2the order. If the individual does not request a hearing or if the individual's request for a
26.3hearing is not served on or faxed to the commissioner by the 30th day after service of the
26.4order, the order shall become a final order of the commissioner and will not be subject to
26.5review by any court or agency. The date on which a request for hearing is served by mail
26.6shall be the postmark date on the envelope in which the request for hearing is mailed. If
26.7the individual serves or faxes a timely request for hearing, the hearing shall be a contested
26.8case hearing and shall be held in accordance with chapter 14.

26.9    Sec. 2. Minnesota Statutes 2010, section 182.6553, subdivision 6, is amended to read:
26.10    Subd. 6. Enforcement. This section shall be enforced by the commissioner under
26.11section sections 182.66 and 182.661. A violation of this section is subject to the penalties
26.12provided under section 182.666.

26.13    Sec. 3. Minnesota Statutes 2010, section 326B.04, subdivision 2, is amended to read:
26.14    Subd. 2. Deposits. Unless otherwise specifically designated by law: (1) all money
26.15collected under sections 144.122, paragraph (f); 181.723; 326B.092 to 326B.096;
26.16326B.101
to 326B.194; 326B.197; 326B.32 to 326B.399; 326B.43 to 326B.49; 326B.52
26.17to 326B.59; 326B.802 to 326B.885; 326B.90 to 326B.998; 327.31 to 327.36; and
26.18327B.01 to 327B.12, except penalties, is credited to the construction code fund; (2) all
26.19fees collected under section 45.23 sections 326B.098 to 326B.099 in connection with
26.20continuing education for residential contractors, residential remodelers, and residential
26.21roofers any license, registration, or certificate issued pursuant to this chapter are credited
26.22to the construction code fund; and (3) all penalties assessed under the sections set forth
26.23in clauses (1) and (2) and all penalties assessed under sections 144.99 to 144.993 in
26.24connection with any violation of sections 326B.43 to 326B.49 or 326B.52 to 326B.59 or
26.25the rules adopted under those sections are credited to the assigned risk safety account
26.26established by section 79.253.

26.27    Sec. 4. Minnesota Statutes 2010, section 326B.091, is amended to read:
26.28326B.091 DEFINITIONS.
26.29    Subdivision 1. Applicability. For purposes of sections 326B.091 to 326B.098
26.30326B.099, the terms defined in this section have the meanings given them.
26.31    Subd. 2. Applicant. "Applicant" means a person who has submitted to the
26.32department an application for a an initial or renewal license.
27.1    Subd. 3. License. "License" means any registration, certification, or other form
27.2of approval authorized by this chapter 326B and chapter 327B to be issued by the
27.3commissioner or department as a condition of doing business or conducting a trade,
27.4profession, or occupation in Minnesota. License includes specifically but not exclusively
27.5an authorization issued by the commissioner or department: to perform electrical work,
27.6plumbing or water conditioning work, high pressure piping work, or residential building
27.7work of a residential contractor, residential remodeler, or residential roofer; to install
27.8manufactured housing; to serve as a building official; or to operate a boiler or boat.
27.9    Subd. 4. Licensee. "Licensee" means the person named on the license as the person
27.10authorized to do business or conduct the trade, profession, or occupation in Minnesota.
27.11    Subd. 5. Notification date. "Notification date" means the date of the written
27.12notification from the department to an applicant that the applicant is qualified to take the
27.13examination required for licensure.
27.14    Subd. 5b. Qualifying individual. "Qualifying individual" means the individual
27.15responsible for obtaining continuing education on behalf of a residential building
27.16contractor, residential remodeler, or residential roofer licensed pursuant to sections
27.17326B.801 to 326B.885.
27.18    Subd. 6. Renewal deadline. "Renewal deadline," when used with respect to a
27.19license, means 30 days before the date that the license expires.

27.20    Sec. 5. Minnesota Statutes 2010, section 326B.098, is amended to read:
27.21326B.098 CONTINUING EDUCATION.
27.22    Subdivision 1. Applicability Department seminars. This section applies to
27.23seminars offered by the department for the purpose of allowing enabling licensees to meet
27.24continuing education requirements for license renewal.
27.25    Subd. 2. Rescheduling. An individual who is registered with the department to
27.26attend a seminar may reschedule one time only, to attend the same seminar on a date
27.27within one year after the date of the seminar the individual was registered to attend.
27.28    Subd. 3. Fees nonrefundable. All seminar fees paid to the department are
27.29nonrefundable except for any overpayment of fees or if the department cancels the seminar.

27.30    Sec. 6. [326B.0981] CONTINUING EDUCATION; NONDEPARTMENT
27.31SEMINARS.
27.32This section applies to seminars that are offered by an entity other than the
27.33department for the purpose of enabling licensees to meet continuing education
27.34requirements for license renewal.

28.1    Sec. 7. Minnesota Statutes 2010, section 326B.13, subdivision 8, is amended to read:
28.2    Subd. 8. Effective date of rules. A rule to adopt or amend the State Building Code
28.3is effective 180 days after the filing of the rule with the secretary of state under section
28.414.16 or 14.26 publication of the rule's notice of adoption in the State Register. The rule
28.5may provide for a later effective date. The rule may provide for an earlier effective date
28.6if the commissioner or board proposing the rule finds that an earlier effective date is
28.7necessary to protect public health and safety after considering, among other things, the
28.8need for time for training of individuals to comply with and enforce the rule.

28.9    Sec. 8. Minnesota Statutes 2010, section 326B.148, subdivision 1, is amended to read:
28.10    Subdivision 1. Computation. To defray the costs of administering sections
28.11326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in
28.12connection with the construction of or addition or alteration to buildings and equipment or
28.13appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge
28.14receipts to award grants for code research and development and education.
28.15    If the fee for the permit issued is fixed in amount the surcharge is equivalent to
28.16one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June
28.1730, 2011 2013, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5,
28.18whichever amount is greater. For all other permits, the surcharge is as follows:
28.19    (1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the
28.20surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition,
28.21or alteration;
28.22    (2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths
28.23mill (.0004) of the value between $1,000,000 and $2,000,000;
28.24    (3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths
28.25mill (.0003) of the value between $2,000,000 and $3,000,000;
28.26    (4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth
28.27mill (.0002) of the value between $3,000,000 and $4,000,000;
28.28    (5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth
28.29mill (.0001) of the value between $4,000,000 and $5,000,000; and
28.30    (6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth
28.31mill (.00005) of the value that exceeds $5,000,000.

28.32    Sec. 9. Minnesota Statutes 2010, section 326B.42, is amended by adding a subdivision
28.33to read:
29.1    Subd. 1b. Backflow prevention rebuilder. A "backflow prevention rebuilder" is an
29.2individual who is qualified by training prescribed by the Plumbing Board and possesses
29.3a master or journeyman plumber's license to engage in the testing, maintenance, and
29.4rebuilding of reduced pressure zone type backflow prevention assemblies as regulated by
29.5the plumbing code.

29.6    Sec. 10. Minnesota Statutes 2010, section 326B.42, is amended by adding a
29.7subdivision to read:
29.8    Subd. 1c. Backflow prevention tester. A "backflow prevention tester" is an
29.9individual who is qualified by training prescribed by the Plumbing Board to engage in
29.10the testing of reduced pressure zone type backflow prevention assemblies as regulated by
29.11the plumbing code.

29.12    Sec. 11. Minnesota Statutes 2010, section 326B.42, subdivision 8, is amended to read:
29.13    Subd. 8. Plumbing contractor. "Plumbing contractor" means a licensed contractor
29.14whose responsible licensed plumber individual is a licensed master plumber.

29.15    Sec. 12. Minnesota Statutes 2010, section 326B.42, subdivision 9, is amended to read:
29.16    Subd. 9. Responsible licensed plumber individual. A contractor's "responsible
29.17licensed plumber individual" means the licensed master plumber or licensed restricted
29.18master plumber designated in writing by the contractor in the contractor's license
29.19application, or in another manner acceptable to the commissioner, as the individual
29.20responsible for the contractor's compliance with sections 326B.41 to 326B.49, all rules
29.21adopted under these sections and sections 326B.50 to 326B.59, and all orders issued
29.22under section 326B.082.

29.23    Sec. 13. Minnesota Statutes 2010, section 326B.42, subdivision 10, is amended to read:
29.24    Subd. 10. Restricted plumbing contractor. "Restricted plumbing contractor"
29.25means a licensed contractor whose responsible licensed plumber individual is a licensed
29.26restricted master plumber.

29.27    Sec. 14. Minnesota Statutes 2010, section 326B.435, subdivision 2, is amended to read:
29.28    Subd. 2. Powers; duties; administrative support. (a) The board shall have the
29.29power to:
29.30    (1) elect its chair, vice-chair, and secretary;
30.1    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
30.2and containing such other provisions as may be useful and necessary for the efficient
30.3conduct of the business of the board;
30.4    (3) adopt the plumbing code that must be followed in this state and any plumbing
30.5code amendments thereto. The plumbing code shall include the minimum standards
30.6described in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board
30.7shall adopt the plumbing code and any amendments thereto pursuant to chapter 14 and
30.8as provided in subdivision 6, paragraphs (b), (c), and (d);
30.9    (4) review requests for final interpretations and issue final interpretations as provided
30.10in section 326B.127, subdivision 5;
30.11    (5) adopt rules that regulate the licensure, certification, or registration of plumbing
30.12contractors, journeymen, unlicensed individuals, master plumbers, restricted master
30.13plumbers, restricted journeymen, restricted plumbing contractors, backflow prevention
30.14rebuilders and testers, water conditioning contractors, and water conditioning installers,
30.15and other persons engaged in the design, installation, and alteration of plumbing systems
30.16or engaged in or working at the business of water conditioning installation or service, or
30.17engaged in or working at the business of medical gas system installation, maintenance, or
30.18repair, except for those individuals licensed under section 326.02, subdivisions 2 and 3.
30.19The board shall adopt these rules pursuant to chapter 14 and as provided in subdivision
30.206, paragraphs (e) and (f);
30.21(6) adopt rules that regulate continuing education for individuals licensed as master
30.22plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman
30.23plumbers, water conditioning contractors, and water conditioning installers, and for
30.24individuals certified under sections 326B.437 and 326B.438. The board shall adopt these
30.25rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) and (f);
30.26    (7) refer complaints or other communications to the commissioner, whether oral or
30.27written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
30.28order that the commissioner has the authority to enforce pertaining to code compliance,
30.29licensure, or an offering to perform or performance of unlicensed plumbing services;
30.30    (8) approve per diem and expenses deemed necessary for its members as provided in
30.31subdivision 3;
30.32    (9) approve license reciprocity agreements;
30.33    (10) select from its members individuals to serve on any other state advisory council,
30.34board, or committee; and
30.35    (11) recommend the fees for licenses, registrations, and certifications.
31.1Except for the powers granted to the Plumbing Board, the Board of Electricity, and the
31.2Board of High Pressure Piping Systems, the commissioner of labor and industry shall
31.3administer and enforce the provisions of this chapter and any rules promulgated pursuant
31.4thereto.
31.5    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
31.6    (c) The commissioner shall coordinate the board's rulemaking and recommendations
31.7with the recommendations and rulemaking conducted by the other boards created pursuant
31.8to this chapter. The commissioner shall provide staff support to the board. The support
31.9includes professional, legal, technical, and clerical staff necessary to perform rulemaking
31.10and other duties assigned to the board. The commissioner of labor and industry shall
31.11supply necessary office space and supplies to assist the board in its duties.

31.12    Sec. 15. [326B.437] REDUCED PRESSURE BACKFLOW PREVENTION
31.13REBUILDERS AND TESTERS.
31.14(a) No person shall perform or offer to perform the installation, maintenance, repair,
31.15replacement, or rebuilding of reduced pressure zone backflow prevention assemblies
31.16unless the person obtains a plumbing contractor's license. An individual shall not engage
31.17in the testing, maintenance, repair, or rebuilding of reduced pressure zone backflow
31.18prevention assemblies, as regulated by the Plumbing Code, unless the individual is
31.19certified by the commissioner as a backflow prevention rebuilder.
31.20(b) An individual shall not engage in testing of a reduced pressure zone backflow
31.21prevention assembly, as regulated by the Plumbing Code, unless the individual possesses a
31.22backflow prevention rebuilder certificate or is certified by the commissioner as a backflow
31.23prevention tester.
31.24(c) Certificates are issued for an initial period of two years and must be renewed
31.25every two years thereafter for as long as the certificate holder installs, maintains, repairs,
31.26rebuilds, or tests reduced pressure zone backflow prevention assemblies. For purposes
31.27of calculating fees under section 326B.092, an initial or renewed backflow prevention
31.28rebuilder or tester certificate shall be considered an entry level license.
31.29(d) The Plumbing Board shall adopt expedited rules under section 14.389 that are
31.30related to the certification of backflow prevention rebuilders and backflow prevention
31.31testers. Section 326B.13, subdivision 8, does not apply to these rules. Notwithstanding the
31.3218-month limitation under section 14.125, this authority expires on December 31, 2014.
31.33(e) The department shall recognize certification programs that are a minimum of 16
31.34contact hours and include the passage of an examination. The examination must consist of
32.1a practical and a written component. This paragraph expires when the Plumbing Board
32.2adopts rules under paragraph (d).

32.3    Sec. 16. Minnesota Statutes 2010, section 326B.438, is amended to read:
32.4326B.438 MEDICAL GAS SYSTEMS.
32.5    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
32.6this subdivision have the meanings given them.
32.7    (b) "Medical gas" means medical gas as defined under the National Fire Protection
32.8Association NFPA 99C Standard on Gas and Vacuum Systems.
32.9    (c) "Medical gas system" means a level 1, 2, or 3 piped medical gas and vacuum
32.10system as defined under the National Fire Protection Association NFPA 99C Standard on
32.11Gas and Vacuum Systems.
32.12    Subd. 2. License and certification required. A No person shall perform or offer
32.13to perform the installation, maintenance, or repair of medical gas systems unless the
32.14person obtains a contractor's license. An individual shall not engage in the installation,
32.15maintenance, or repair of a medical gas system unless the person individual possesses
32.16a current Minnesota master or journeyman plumber's license and is certified by the
32.17commissioner under rules adopted by the Minnesota Plumbing Board. The certification
32.18must be renewed annually biennially for as long as the certificate holder engages in the
32.19installation, maintenance, or repair of medical gas and vacuum systems. If a medical gas
32.20and vacuum system certificate is not renewed within 12 months after its expiration the
32.21medical gas and vacuum certificate is permanently forfeited.
32.22    Subd. 3. Exemptions. (a) A person An individual who on August 1, 2010, holds
32.23a valid certificate authorized by the American Society of Sanitary Engineering (ASSE)
32.24in accordance with standards recommended by the National Fire Protection Association
32.25under NFPA 99C is exempt from the requirements of subdivision 2. This exemption
32.26applies only if the person individual maintains a valid certification authorized by the ASSE.
32.27    (b) A person An individual who on August 1, 2010, possesses a current Minnesota
32.28master or journeyman plumber's license and a valid certificate authorized by the ASSE
32.29in accordance with standards recommended by the National Fire Protection Association
32.30under NFPA 99C is exempt from the requirements of subdivision 2 and may install,
32.31maintain, and repair a medical gas system. This exemption applies only if a person an
32.32individual maintains a valid Minnesota master or journeyman plumber's license and valid
32.33certification authorized by the ASSE.
32.34    Subd. 4. Fees. The fee for a medical gas certificate For the purpose of calculating
32.35fees under section 326B.092, an initial or renewed medical gas certificate issued by the
33.1commissioner according to subdivision 2 is $30 per year shall be considered a journeyman
33.2level license.

33.3    Sec. 17. Minnesota Statutes 2010, section 326B.46, subdivision 1a, is amended to read:
33.4    Subd. 1a. Exemptions from licensing. (a) An individual without a contractor
33.5license may do plumbing work on the individual's residence in accordance with
33.6subdivision 1, paragraph (a).
33.7(b) An individual who is an employee working on the maintenance and repair of
33.8plumbing equipment, apparatus, or facilities owned or leased by the individual's employer
33.9and which is within the limits of property owned or leased, and operated or maintained by
33.10the individual's employer, shall not be required to maintain a contractor license as long
33.11as the employer has on file with the commissioner a current certificate of responsible
33.12person. The certificate must be signed by the responsible individual. The responsible
33.13individual must be a master plumber or, in an area of the state that is not a city or town
33.14with a population of more than 5,000 according to the last federal census, a restricted
33.15master plumber,. The certificate must be signed by the responsible individual and must
33.16state that the person signing the certificate is responsible for ensuring that the maintenance
33.17and repair work performed by the employer's employees comply complies with sections
33.18326B.41 to 326B.49, all rules adopted under those sections and sections 326B.50 to
33.19326B.59 , and all orders issued under section 326B.082. The employer must pay a filing
33.20fee to file a certificate of responsible person individual with the commissioner. The
33.21certificate shall expire two years from the date of filing. In order to maintain a current
33.22certificate of responsible person individual, the employer must resubmit a certificate of
33.23responsible person individual, with a filing fee, no later than two years from the date of the
33.24previous submittal. The filing of the certificate of responsible person individual does not
33.25exempt any employee of the employer from the requirements of this chapter regarding
33.26individual licensing as a plumber or registration as a plumber's apprentice.
33.27(c) If a contractor employs a licensed plumber, the licensed plumber does not need a
33.28separate contractor license to perform plumbing work on behalf of the employer within
33.29the scope of the licensed plumber's license.
33.30(d) A person may perform and offer to perform building sewer or water service
33.31installation without a contractor's license if the person is in compliance with the bond and
33.32insurance requirements of subdivision 2.

33.33    Sec. 18. Minnesota Statutes 2010, section 326B.46, subdivision 1b, is amended to read:
34.1    Subd. 1b. Employment of master plumber or restricted master plumber. (a)
34.2Each contractor must designate a responsible licensed plumber, who shall be responsible
34.3for the performance of all plumbing work in accordance with sections 326B.41 to
34.4326B.49 , all rules adopted under these sections and sections 326B.50 to 326B.59, and all
34.5orders issued under section 326B.082. A plumbing contractor's responsible licensed
34.6plumber individual must be a master plumber. A restricted plumbing contractor's
34.7responsible licensed plumber individual must be a master plumber or a restricted master
34.8plumber. A plumbing contractor license authorizes the contractor to offer to perform
34.9and, through licensed and registered individuals, to perform plumbing work in all areas
34.10of the state. A restricted plumbing contractor license authorizes the contractor to offer
34.11to perform and, through licensed and registered individuals, to perform plumbing work
34.12in all areas of the state except in cities and towns with a population of more than 5,000
34.13according to the last federal census.
34.14(b) If the contractor is an individual or sole proprietorship, the responsible licensed
34.15plumber individual must be the individual, proprietor, or managing employee. If the
34.16contractor is a partnership, the responsible licensed plumber individual must be a general
34.17partner or managing employee. If the contractor is a limited liability company, the
34.18responsible licensed plumber individual must be a chief manager or managing employee.
34.19If the contractor is a corporation, the responsible licensed plumber individual must be
34.20an officer or managing employee. If the responsible licensed plumber individual is a
34.21managing employee, the responsible licensed plumber individual must be actively engaged
34.22in performing plumbing work on behalf of the contractor, and cannot be employed in any
34.23capacity as a plumber for any other contractor. An individual may be the responsible
34.24licensed plumber individual for only one contractor.
34.25(c) All applications and renewals for contractor licenses shall include a verified
34.26statement that the applicant or licensee has complied with this subdivision.

34.27    Sec. 19. Minnesota Statutes 2010, section 326B.46, subdivision 2, is amended to read:
34.28    Subd. 2. Bond; insurance. As a condition of licensing, each contractor (a) The
34.29bond and insurance requirements of paragraphs (b) and (c) apply to each person who
34.30performs or offers to perform plumbing work within the state, including any person who
34.31offers to perform or performs sewer or water service installation without a contractor's
34.32license. If the person performs or offers to perform any plumbing work other than sewer
34.33or water service installation, then the person must meet the requirements of paragraphs
34.34(b) and (c) as a condition of holding a contractor's license.
35.1(b) Each person who performs or offers to perform plumbing work within the state
35.2shall give and maintain bond to the state in the amount of at least $25,000 for (1) all
35.3plumbing work entered into within the state or (2) all plumbing work and subsurface
35.4sewage treatment work entered into within the state. If the bond is for both plumbing work
35.5and subsurface sewage treatment work, the bond must comply with the requirements of
35.6this section and section 115.56, subdivision 2, paragraph (e). The bond shall be for the
35.7benefit of persons injured or suffering financial loss by reason of failure to comply with the
35.8requirements of the State Plumbing Code and, if the bond is for both plumbing work and
35.9subsurface sewage treatment work, financial loss by reason of failure to comply with the
35.10requirements of sections 115.55 and 115.56. The bond shall be filed with the commissioner
35.11and shall be written by a corporate surety licensed to do business in the state.
35.12    In addition, as a condition of licensing, each contractor (c) Each person who
35.13performs or offers to perform plumbing work within the state shall have and maintain in
35.14effect public liability insurance, including products liability insurance with limits of at
35.15least $50,000 per person and $100,000 per occurrence and property damage insurance
35.16with limits of at least $10,000. The insurance shall be written by an insurer licensed to
35.17do business in the state of Minnesota and. Each licensed master plumber person who
35.18performs or offers to perform plumbing work within the state shall maintain on file
35.19with the commissioner a certificate evidencing the insurance. In the event of a policy
35.20cancellation, the insurer shall send written notice to the commissioner at the same time
35.21that a cancellation request is received from or a notice is sent to the insured.

35.22    Sec. 20. Minnesota Statutes 2010, section 326B.46, subdivision 3, is amended to read:
35.23    Subd. 3. Bond and insurance exemption. If a master plumber or restricted
35.24master plumber person who is in compliance with the bond and insurance requirements
35.25of subdivision 2, employs a licensed plumber, the or an individual who has completed
35.26pipe-laying training as prescribed by the commissioner, that employee plumber shall not be
35.27required to meet the bond and insurance requirements of subdivision 2. An individual who
35.28is an employee working on the maintenance and repair of plumbing equipment, apparatus,
35.29or facilities owned or leased by the individual's employer and which is within the limits of
35.30property owned or leased, and operated or maintained by the individual's employer, shall
35.31not be required to meet the bond and insurance requirements of subdivision 2.

35.32    Sec. 21. Minnesota Statutes 2010, section 326B.47, subdivision 1, is amended to read:
36.1    Subdivision 1. Registration; supervision; records. (a) All unlicensed individuals,
36.2other than plumber's apprentices and individuals who have completed pipe-laying training
36.3as prescribed by the commissioner, must be registered under subdivision 3.
36.4(b) A plumber's apprentice or registered unlicensed individual is authorized to
36.5assist in the installation of plumbing only while under the direct supervision of a master,
36.6restricted master, journeyman, or restricted journeyman plumber. The master, restricted
36.7master, journeyman, or restricted journeyman plumber is responsible for ensuring that all
36.8plumbing work performed by the plumber's apprentice or registered unlicensed individual
36.9complies with the plumbing code. The supervising master, restricted master, journeyman,
36.10or restricted journeyman must be licensed and must be employed by the same employer
36.11as the plumber's apprentice or registered unlicensed individual. Licensed individuals
36.12shall not permit plumber's apprentices or registered unlicensed individuals to perform
36.13plumbing work except under the direct supervision of an individual actually licensed to
36.14perform such work. Plumber's apprentices and registered unlicensed individuals shall not
36.15supervise the performance of plumbing work or make assignments of plumbing work
36.16to unlicensed individuals.
36.17(c) Contractors employing plumber's apprentices or registered unlicensed individuals
36.18to perform plumbing work shall maintain records establishing compliance with this
36.19subdivision that shall identify all plumber's apprentices and registered unlicensed
36.20individuals performing plumbing work, and shall permit the department to examine and
36.21copy all such records.

36.22    Sec. 22. Minnesota Statutes 2010, section 326B.47, subdivision 3, is amended to read:
36.23    Subd. 3. Registration, rules, applications, renewals, and fees. An unlicensed
36.24individual may register by completing and submitting to the commissioner an application
36.25form provided by the commissioner, with all fees required by section 326B.092. A
36.26completed application form must state the date the individual began training, the
36.27individual's age, schooling, previous experience, and employer, and other information
36.28required by the commissioner. The Plumbing Board may prescribe rules, not inconsistent
36.29with this section, for the registration of unlicensed individuals. Applications for initial
36.30registration may be submitted at any time. Registration must be renewed annually and
36.31shall be for the period from July 1 of each year to June 30 of the following year.

36.32    Sec. 23. Minnesota Statutes 2010, section 326B.49, subdivision 1, is amended to read:
36.33    Subdivision 1. Application, examination, and license fees. (a) Applications for
36.34master and journeyman plumber's licenses shall be made to the commissioner, with
37.1all fees required by section 326B.092. Unless the applicant is entitled to a renewal,
37.2the applicant shall be licensed by the commissioner only after passing a satisfactory
37.3examination developed and administered by the commissioner, based upon rules adopted
37.4by the Plumbing Board, showing fitness.
37.5(b) All initial journeyman plumber's licenses shall be effective for more than one
37.6calendar year and shall expire on December 31 of the year after the year in which the
37.7application is made. All master plumber's licenses shall expire on December 31 of each
37.8even-numbered year after issuance or renewal. The commissioner shall in a manner
37.9determined by the commissioner, without the need for any rulemaking under chapter 14,
37.10phase in the renewal of master and journeyman plumber's licenses from one year to two
37.11years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be
37.12two-year licenses.
37.13(c) Applications for contractor licenses shall be made to the commissioner, with all
37.14fees required by section 326B.092. All contractor licenses shall expire on December 31 of
37.15each odd-numbered year after issuance or renewal.
37.16(d) For purposes of calculating license fees and renewal license fees required under
37.17section 326B.092:
37.18(1) the following licenses shall be considered business licenses: plumbing contractor
37.19and restricted plumbing contractor;
37.20(2) the following licenses shall be considered master licenses: master plumber and
37.21restricted master plumber;
37.22(3) the following licenses shall be considered journeyman licenses: journeyman
37.23plumber and restricted journeyman plumber; and
37.24(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3,
37.25shall be considered an entry level license.
37.26(e) For each filing of a certificate of responsible person individual by an employer,
37.27the fee is $100.
37.28(f) The commissioner shall charge each person giving bond under section 326B.46,
37.29subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a
37.30licensed contractor.

37.31    Sec. 24. Minnesota Statutes 2010, section 326B.56, subdivision 1, is amended to read:
37.32    Subdivision 1. Bonds. (a) As a condition of licensing, each water conditioning
37.33contractor shall give and maintain a bond to the state as described in paragraph (b).
37.34No applicant for a water conditioning contractor or installer license who maintains the
38.1bond under paragraph (b) shall be otherwise required to meet the bond requirements of
38.2any political subdivision.
38.3    (b) Each bond given to the state under this subdivision shall be in the total sum of
38.4$3,000 conditioned upon the faithful and lawful performance of all water conditioning
38.5installation or servicing done within the state. The bond shall be for the benefit of
38.6persons suffering injuries or damages due to the work. The bond shall be filed with the
38.7commissioner and shall be written by a corporate surety licensed to do business in this
38.8state. The bond must remain in effect at all times while the application is pending and
38.9while the license is in effect.

38.10    Sec. 25. Minnesota Statutes 2010, section 326B.58, is amended to read:
38.11326B.58 FEES; RENEWAL.
38.12    (a) Each initial water conditioning master and water conditioning journeyman
38.13license shall be effective for more than one calendar year and shall expire on December 31
38.14of the year after the year in which the application is made.
38.15(b) The commissioner shall in a manner determined by the commissioner, without
38.16the need for any rulemaking under chapter 14, phase in the renewal of water conditioning
38.17master and journeyman licenses from one year to two years. By June 30, 2011, all
38.18renewed water conditioning contractor and installer licenses shall be two-year licenses.
38.19The Plumbing Board may by rule prescribe for the expiration and renewal of licenses.
38.20(c) All water conditioning contractor licenses shall expire on December 31 of the
38.21year after issuance or renewal.
38.22(d) For purposes of calculating license fees and renewal fees required under section
38.23326B.092 :
38.24(1) a water conditioning journeyman license shall be considered a journeyman
38.25license;
38.26(2) a water conditioning master license shall be considered a master license; and
38.27(3) a water conditioning contractor license shall be considered a business license.

38.28    Sec. 26. Minnesota Statutes 2010, section 326B.82, subdivision 2, is amended to read:
38.29    Subd. 2. Appropriate and related knowledge. "Appropriate and related
38.30knowledge" means facts, information, or principles that are clearly relevant to the licensee
38.31in performing licensee's responsibilities under a license issued by the commissioner.
38.32These facts, information, or principles must convey substantive and procedural knowledge
38.33as it relates to postlicensing issues and must be relevant to the technical aspects of a
38.34particular area of continuing education regulated industry.

39.1    Sec. 27. Minnesota Statutes 2010, section 326B.82, subdivision 3, is amended to read:
39.2    Subd. 3. Classroom hour. "Classroom hour" means a 50-minute hour 50 minutes of
39.3educational content.

39.4    Sec. 28. Minnesota Statutes 2010, section 326B.82, subdivision 7, is amended to read:
39.5    Subd. 7. Medical hardship. "Medical hardship" includes means a documented
39.6physical disability or medical condition.

39.7    Sec. 29. Minnesota Statutes 2010, section 326B.82, subdivision 9, is amended to read:
39.8    Subd. 9. Regulated industries industry. "Regulated industries industry" means
39.9residential contracting, residential remodeling, or residential roofing. Each of these is a
39.10regulated industry any business, trade, profession, or occupation that requires a license
39.11issued under this chapter or chapter 327B as a condition of doing business in Minnesota.

39.12    Sec. 30. Minnesota Statutes 2010, section 326B.821, subdivision 1, is amended to read:
39.13    Subdivision 1. Purpose. The purpose of this section is to establish standards
39.14for residential building contractor continuing education. The standards must include
39.15requirements for continuing education in the implementation of energy codes or energy
39.16conservation measures applicable to residential buildings.

39.17    Sec. 31. Minnesota Statutes 2010, section 326B.821, subdivision 5, is amended to read:
39.18    Subd. 5. Content. (a) Continuing education consists of approved courses that
39.19impart appropriate and related knowledge in the residential construction industry regulated
39.20industries pursuant to sections 326B.802 to 326B.885 this chapter and other relevant
39.21applicable federal and state laws, rules, and regulations. Courses may include relevant
39.22materials that are included in licensing exams subject to the limitations imposed in
39.23subdivision 11. The burden of demonstrating that courses impart appropriate and related
39.24knowledge is upon the person seeking approval or credit.
39.25    (b) Except as required for Internet continuing education, course examinations will
39.26not be required for continuing education courses unless they are required by the sponsor.
39.27    (c) Textbooks are not required to be used for continuing education courses. If
39.28textbooks are not used as part of the course, the sponsor must provide students with a
39.29syllabus containing, at a minimum, the course title, the times and dates of the course
39.30offering, the name, address, and telephone number of the course sponsor and, the name
39.31and affiliation of the instructor, and a detailed outline of the subject materials to be
40.1covered. Any written or printed material given to students must be of readable quality and
40.2contain accurate and current information.
40.3    (d) Upon completion of an approved course, licensees shall earn one hour of
40.4continuing education credit for each classroom hour approved by the commissioner. One
40.5credit hour of continuing education is equivalent to 50 minutes of educational content.
40.6Each continuing education course must be attended in its entirety in order to receive credit
40.7for the number of approved hours. Courses may be approved for full or partial credit,
40.8and for more than one regulated industry.
40.9    (e) Continuing education credit in an approved course shall be awarded to presenting
40.10instructors on the basis of one credit for each hour of preparation for the duration of the
40.11initial presentation. Continuing education credit may not be earned if the licensee has
40.12previously obtained credit for the same course as a licensee or as an instructor within the
40.13three years immediately prior credits for completion of an approved course may only be
40.14used once for renewal of a specific license.
40.15    (e) (f) Courses will be approved using the following guidelines:
40.16(1) course content must demonstrate significant intellectual or practical content and
40.17deal with matters directly related to the practice of residential construction in the regulated
40.18industry, workforce safety, or the business of running a residential construction company
40.19in the regulated industry. Courses may also address the professional responsibility or
40.20ethical obligations of residential contractors to homeowners and suppliers a licensee
40.21related to work in the regulated industry;
40.22(2) the following courses may be automatically approved if they are specifically
40.23designed for the residential construction regulated industry and are in compliance with
40.24paragraph (f) (g):
40.25(i) courses approved by the Minnesota Board of Continuing Legal Education; or
40.26(ii) courses approved by the International Code Council, National Association of
40.27Home Building, or other nationally recognized professional organization of the residential
40.28construction regulated industry; and
40.29(3) courses must be presented and attended in a suitable classroom or construction
40.30setting, except for Internet education courses which must meet the requirements of
40.31subdivision 5a. Courses presented via video recording, simultaneous broadcast, or
40.32teleconference may be approved provided the sponsor is available at all times during the
40.33presentation, except for Internet education courses which must meet the requirements
40.34of subdivision 5a.
40.35(f) (g) The following courses will not be approved for credit:
40.36    (1) courses designed solely to prepare students for a license examination;
41.1    (2) courses in mechanical office skills, including typing, speed reading, or other
41.2machines or equipment. Computer courses are allowed, if appropriate and related to the
41.3residential construction regulated industry;
41.4    (3) courses in sales promotion, including meetings held in conjunction with the
41.5general business of the licensee;
41.6    (4) courses in motivation, salesmanship, psychology, or personal time management;
41.7    (5) courses that are primarily intended to impart knowledge of specific products of
41.8specific companies, if the use of the product or products relates to the sales promotion
41.9or marketing of one or more of the products discussed; or
41.10(6) courses where any of the educational content of the course is the State Building
41.11Code that include code provisions that have not been adopted into the State Building
41.12Code unless the course materials clarify whether or not that the code provisions have
41.13been officially adopted into a future version of the State Building Code and the effective
41.14date of enforcement, if applicable.

41.15    Sec. 32. Minnesota Statutes 2010, section 326B.821, subdivision 5a, is amended to
41.16read:
41.17    Subd. 5a. Internet continuing education. (a) Minnesota state colleges and
41.18universities that are accredited to provide Internet education by the Higher Learning
41.19Commission are exempt from the requirements of this subdivision.
41.20(b) The design and delivery of an Internet continuing education course must be
41.21approved by the International Distance Education Certification Center (IDECC) before
41.22the course is submitted for the commissioner's approval. The IDECC approval must
41.23accompany the course submitted.
41.24(b) (c) An Internet continuing education course must:
41.25(1) specify the minimum computer system requirements;
41.26(2) provide encryption that ensures that all personal information, including the
41.27student's name, address, and credit card number, cannot be read as it passes across the
41.28Internet;
41.29(3) include technology to guarantee seat time;
41.30(4) include a high level of interactivity;
41.31(5) include graphics that reinforce the content;
41.32(6) include the ability for the student to contact an instructor or course sponsor
41.33within a reasonable amount of time;
41.34(7) include the ability for the student to get technical support within a reasonable
41.35amount of time;
42.1(8) include a statement that the student's information will not be sold or distributed
42.2to any third party without prior written consent of the student. Taking the course does not
42.3constitute consent;
42.4(9) be available 24 hours a day, seven days a week, excluding minimal downtime
42.5for updating and administration, except that this provision does not apply to live courses
42.6taught by an actual instructor and delivered over the Internet;
42.7(10) provide viewing access to the online course at all times to the commissioner,
42.8excluding minimal downtime for updating and administration;
42.9(11) include a process to authenticate the student's identity;
42.10(12) inform the student and the commissioner how long after its purchase a course
42.11will be accessible;
42.12(13) inform the student that license education credit will not be awarded for taking
42.13the course after it loses its status as an approved course;
42.14(14) provide clear instructions on how to navigate through the course;
42.15(15) provide automatic bookmarking at any point in the course;
42.16(16) provide questions after each unit or chapter that must be answered before the
42.17student can proceed to the next unit or chapter;
42.18(17) include a reinforcement response when a quiz question is answered correctly;
42.19(18) include a response when a quiz question is answered incorrectly;
42.20(19) include a final examination in which the student must correctly answer 70
42.21percent of the questions;
42.22(20) allow the student to go back and review any unit at any time, except during the
42.23final examination;
42.24(21) provide a course evaluation at the end of the course. At a minimum, the
42.25evaluation must ask the student to report any difficulties caused by the online education
42.26delivery method;
42.27(22) provide a completion certificate when the course and exam have been completed
42.28and the provider has verified the completion. Electronic certificates are sufficient and shall
42.29include the name of the provider, date and location of the course, educational program
42.30identification that was provided by the department, hours of instruction or continuing
42.31education hours, and licensee's or attendee's name and license, certification, or registration
42.32number or the last four digits of the licensee's or attendee's Social Security number; and
42.33(23) allow the commissioner the ability to electronically review the class to
42.34determine if credit can be approved.
43.1(c) (d) The final examination must be either an encrypted online examination or a
43.2paper examination that is monitored by a proctor who certifies that the student took the
43.3examination.

43.4    Sec. 33. Minnesota Statutes 2010, section 326B.821, subdivision 6, is amended to read:
43.5    Subd. 6. Course approval. (a) Courses must be approved by the commissioner
43.6in advance and will be approved on the basis of the applicant's compliance with the
43.7provisions of this section relating to continuing education in the regulated industries. The
43.8commissioner shall make the final determination as to the approval and assignment of
43.9credit hours for courses. Courses must be at least one hour in length.
43.10    Licensees requesting credit for continuing education courses that have not been
43.11previously approved by the commissioner shall, on a form prescribed by the commissioner,
43.12submit an application for approval of continuing education credit accompanied by a
43.13nonrefundable fee of $20 for each course to be reviewed. To be approved, courses must be
43.14in compliance with the provisions of this section governing the types of courses that will
43.15and will not be approved.
43.16    Approval will not be granted for time spent on meals or other unrelated activities.
43.17Breaks may not be accumulated in order to dismiss the class early. Classes shall not be
43.18offered by a provider to any one student for longer than eight hours in one day, excluding
43.19meal breaks.
43.20    (b) Application for course approval must be submitted on a form approved by the
43.21commissioner at least 30 days before the course offering.
43.22    (c) Approval must be granted for a subsequent offering of identical continuing
43.23education courses without requiring a new application if a notice of the subsequent
43.24offering is filed with the commissioner at least 30 days in advance of the date the course is
43.25to be held. The commissioner shall deny future offerings of courses if they are found not
43.26to be in compliance with the laws relating to course approval.

43.27    Sec. 34. Minnesota Statutes 2010, section 326B.821, subdivision 7, is amended to read:
43.28    Subd. 7. Courses open to all. All course offerings must be open to any interested
43.29individuals. Access may be restricted by the sponsor based on class size only. Courses
43.30must shall not be approved if attendance is restricted to any particular group of people,
43.31except for company-sponsored courses allowed by applicable law.

43.32    Sec. 35. Minnesota Statutes 2010, section 326B.821, subdivision 8, is amended to read:
44.1    Subd. 8. Course sponsor. (a) Each course of study shall have at least one sponsor,
44.2approved by the commissioner, who is responsible for supervising the program and
44.3ensuring compliance with all relevant law. Sponsors may engage an additional approved
44.4sponsor in order to assist the sponsor or to act as a substitute for the sponsor in the event
44.5of an emergency or illness.
44.6(b) Sponsors must submit an application and sworn statement stating they agree to
44.7abide by the requirements of this section and any other applicable statute or rule pertaining
44.8to residential construction continuing education in the regulated industry.
44.9(c) A sponsor may also be an instructor.
44.10(d) Failure to comply with requirements paragraph (b) may result in loss of sponsor
44.11approval for up to two years in accordance with section 326B.082.

44.12    Sec. 36. Minnesota Statutes 2010, section 326B.821, subdivision 9, is amended to read:
44.13    Subd. 9. Responsibilities. A sponsor is responsible for:
44.14    (1) ensuring compliance with all laws and rules relating to continuing educational
44.15offerings governed by the commissioner;
44.16    (2) ensuring that students are provided with current and accurate information relating
44.17to the laws and rules governing their licensed activity the regulated industry;
44.18    (3) supervising and evaluating courses and instructors. Supervision includes
44.19ensuring that all areas of the curriculum are addressed without redundancy and that
44.20continuity is present throughout the entire course;
44.21    (4) ensuring that instructors are qualified to teach the course offering;
44.22    (5) furnishing the commissioner, upon request, with copies of course and instructor
44.23evaluations and. Evaluations must be completed by students at the time the course is
44.24offered;
44.25(6) furnishing the commissioner, upon request, with copies of the qualifications of
44.26instructors. Evaluations must be completed by students at the time the course is offered
44.27and by sponsors within five days after the course offering;
44.28    (6) (7) investigating complaints related to course offerings or instructors. A copy
44.29of the written complaint must be sent to the commissioner within ten days of receipt of
44.30the complaint and a copy of the complaint resolution must be sent not more than ten
44.31days after resolution is reached;
44.32    (7) (8) maintaining accurate records relating to course offerings, instructors, tests
44.33taken by students if required, and student attendance for a period of three years from the
44.34date on which the course was completed. These records must be made available to the
44.35commissioner upon request. In the event the sponsor ceases operations before termination
45.1of the sponsor application, the sponsor must provide to the commissioner digital copies of
45.2all course and attendance records of courses held for the previous three years;
45.3    (8) (9) attending workshops or instructional programs as reasonably required by
45.4the commissioner;
45.5    (9) (10) providing course completion certificates within ten days of, but not before,
45.6completion of the entire course. A sponsor may require payment of the course tuition as a
45.7condition of receiving the course completion certificate. Course completion certificates
45.8must be completed in their entirety. Course completion certificates must and shall contain
45.9the following:
45.10(i) the statement: "If you have any comments about this course offering, please mail
45.11them to the Minnesota Department of Labor and Industry.";
45.12(ii) the current address of the department must be included. A sponsor may require
45.13payment of the course tuition as a condition for receiving the course completion certificate,
45.14name of the provider, date and location of the course, educational program identification
45.15provided by the department, and hours of instruction or continuing education hours; and
45.16(iii) the licensee's or attendee's name and license, certificate, or registration number
45.17or the last four digits of the licensee's or attendee's Social Security number; and
45.18    (10) (11) notifying the commissioner in writing within ten days of any change in the
45.19information in an application for approval on file with the commissioner.

45.20    Sec. 37. Minnesota Statutes 2010, section 326B.821, subdivision 10, is amended to
45.21read:
45.22    Subd. 10. Instructors. (a) Each continuing education course shall have an instructor
45.23who is qualified by education, training, or experience to ensure competent instruction.
45.24Failure to have only qualified instructors teach at an approved course offering will result in
45.25loss of course approval. Sponsors are responsible to ensure that an instructor is qualified
45.26to teach the course offering.
45.27    (b) Qualified continuing education instructors must have one of the following
45.28qualifications:
45.29    (1) four years' practical experience in the subject area being taught;
45.30    (2) a college or graduate degree in the subject area being taught;
45.31(3) direct experience in the development of laws, rules, or regulations related to the
45.32residential construction regulated industry; or
45.33(4) demonstrated expertise in the subject area being taught. Instructors providing
45.34instruction related to electricity, plumbing, or high pressure piping systems must comply
46.1with all applicable continuing education rules adopted by the Board of Electricity, the
46.2Plumbing Board, or the Board of High Pressure Piping Systems.
46.3    (c) Approved Qualified continuing education instructors are responsible for:
46.4    (1) compliance with all laws and rules relating to continuing education;
46.5    (2) providing students with current and accurate information;
46.6    (3) maintaining an atmosphere conducive to learning in the classroom;
46.7    (4) verifying attendance of students, and certifying course completion;
46.8    (5) providing assistance to students and responding to questions relating to course
46.9materials; and
46.10    (6) attending the workshops or instructional programs that are required by the
46.11commissioner.

46.12    Sec. 38. Minnesota Statutes 2010, section 326B.821, subdivision 11, is amended to
46.13read:
46.14    Subd. 11. Prohibited practices for sponsors and instructors. (a) In connection
46.15with an approved continuing education course, sponsors and instructors shall not:
46.16    (1) recommend or, promote, or disparage the specific services, products, processes,
46.17procedures, or practices of a particular business person in the regulated industry;
46.18    (2) encourage or recruit individuals students to engage the services of, or become
46.19associated with, a particular business;
46.20    (3) use materials for the sole purpose of promoting a particular business;
46.21    (4) require students to participate in other programs or services offered by an
46.22instructor or sponsor;
46.23    (5) attempt, either directly or indirectly, to discover questions or answers on an
46.24examination for a license;
46.25    (6) disseminate to any other person specific questions, problems, or information
46.26known or believed to be included in licensing examinations;
46.27    (7) misrepresent any information submitted to the commissioner;
46.28    (8) fail to reasonably cover, or ensure coverage of, all points, issues, and concepts
46.29contained in the course outline approved by the commissioner during the approved
46.30instruction; or
46.31    (9) issue inaccurate course completion certificates.
46.32    (b) Sponsors shall notify the commissioner within ten days of a felony or gross
46.33misdemeanor conviction or of disciplinary action taken against an occupational or
46.34professional license held by the sponsor or an instructor teaching an approved course. The
47.1notification conviction or disciplinary action shall be grounds for the commissioner to
47.2withdraw the approval of the sponsor and to disallow the use of the sponsor or instructor.

47.3    Sec. 39. Minnesota Statutes 2010, section 326B.821, subdivision 12, is amended to
47.4read:
47.5    Subd. 12. Fees Course tuition. Fees Tuition for an approved course of study
47.6and related materials must be clearly identified to students. In the event that a course is
47.7canceled for any reason, all fees tuition must be returned within 15 days from the date of
47.8cancellation. In the event that a course is postponed for any reason, students shall be given
47.9the choice of attending the course at a later date or having their fees tuition refunded in
47.10full within 15 days from the date of postponement. If a student is unable to attend a course
47.11or cancels the registration in a course, sponsor policies regarding refunds shall govern.

47.12    Sec. 40. Minnesota Statutes 2010, section 326B.821, subdivision 15, is amended to
47.13read:
47.14    Subd. 15. Advertising courses. (a) Paragraphs (b) to (g) govern the advertising
47.15of continuing education courses.
47.16    (b) Advertising must be truthful and not deceptive or misleading. Courses may
47.17not be advertised as approved for continuing education credit unless approval has been
47.18granted in writing by the commissioner.
47.19    (c) Once a course is approved, all advertisement, pamphlet, circular, or other similar
47.20materials pertaining to an approved course circulated or distributed in this state, must
47.21prominently display the following statement:
47.22    "This course has been approved by the Minnesota Department of Labor and Industry
47.23for ....... (approved number of hours) hours for residential contractor ....... (regulated
47.24industry) continuing education."
47.25    (d) Advertising of approved courses must be clearly distinguishable from the
47.26advertisement of other nonapproved courses and services.
47.27    (e) Continuing education courses may not be advertised before approval unless the
47.28course is described in any advertising as "approval pending." The sponsor must verbally
47.29notify licensees students before commencement of the course if the course has been
47.30denied credit, has not been approved for credit, or has only been approved for partial
47.31credit by the commissioner.
47.32    (f) The number of hours for which a course has been approved must be prominently
47.33displayed on an advertisement for the course. If the course offering is longer than the
48.1number of hours of credit to be given, it must be clear that credit is not earned for the
48.2entire course.
48.3    (g) The course approval number must not be included in any advertisement.

48.4    Sec. 41. Minnesota Statutes 2010, section 326B.821, subdivision 16, is amended to
48.5read:
48.6    Subd. 16. Notice to students. At the beginning of each approved offering, the
48.7following notice must be handed out in printed form or must be read to students:
48.8    "This educational offering is recognized by the Minnesota Department of Labor and
48.9Industry as satisfying ....... (insert number of hours approved) hours of credit toward
48.10residential contractor (insert regulated industry) continuing education requirements."

48.11    Sec. 42. Minnesota Statutes 2010, section 326B.821, subdivision 18, is amended to
48.12read:
48.13    Subd. 18. Falsification of reports or certificates. A licensee, its qualified person
48.14qualifying individual, or an applicant found to have falsified an education report or
48.15certificate to the commissioner shall be considered to have violated the laws relating to
48.16the regulated industry for which the person has a license and shall be subject to censure,
48.17limitation, condition, suspension, or revocation of the license or denial of the application
48.18for licensure the enforcement provisions of section 326B.082.
48.19    The commissioner reserves the right to audit a licensee's continuing education
48.20records.

48.21    Sec. 43. Minnesota Statutes 2010, section 326B.821, subdivision 19, is amended to
48.22read:
48.23    Subd. 19. Waivers and extensions. If a licensee provides documentation to the
48.24commissioner that the licensee or its qualifying person is unable, and will continue to be
48.25unable, to attend actual classroom course work because of a physical disability, medical
48.26condition, or similar reason, attendance at continuing education courses shall be waived
48.27for a period not to exceed one year. The commissioner shall require that the licensee or
48.28its qualifying person satisfactorily complete a self-study program to include reading a
48.29sufficient number of textbooks, or listening to a sufficient number of tapes, related to the
48.30residential building contractor industry, as would be necessary for the licensee to satisfy
48.31continuing educational credit hour needs. The commissioner shall award the licensee
48.32credit hours for a self-study program by determining how many credit hours would
48.33be granted to a classroom course involving the same material and giving the licensee
49.1the same number of credit hours under this section. The licensee may apply each year
49.2for a new waiver upon the same terms and conditions as were necessary to secure the
49.3original waiver, and must demonstrate that in subsequent years, the licensee was unable to
49.4complete actual classroom course work. The commissioner may request documentation
49.5of the condition upon which the request for waiver is based as is necessary to satisfy
49.6the commissioner of the existence of the condition and that the condition does preclude
49.7attendance at continuing education courses.
49.8    Upon written proof demonstrating a medical hardship, the commissioner shall
49.9extend, for up to 90 days, the time period during which the continuing education must be
49.10successfully completed. Loss of income from either attendance at courses or cancellation
49.11of a license is not a bona fide financial hardship. Requests for extensions must be
49.12submitted to the commissioner in writing no later than 60 days before the education is
49.13due and must include an explanation with verification of the hardship, plus verification of
49.14enrollment at an approved course of study on or before the extension period expires.

49.15    Sec. 44. Minnesota Statutes 2010, section 326B.821, subdivision 20, is amended to
49.16read:
49.17    Subd. 20. Reporting requirements. Required Continuing education credits must
49.18be reported by the sponsor in a manner prescribed by the commissioner. Licensees are
49.19responsible for maintaining copies of course completion certificates.

49.20    Sec. 45. Minnesota Statutes 2010, section 326B.821, subdivision 22, is amended to
49.21read:
49.22    Subd. 22. Continuing education approval. Continuing education courses must be
49.23approved in advance by the commissioner of labor and industry. "Sponsor" means any
49.24person or entity offering approved education.

49.25    Sec. 46. Minnesota Statutes 2010, section 326B.821, subdivision 23, is amended to
49.26read:
49.27    Subd. 23. Continuing education fees. The following fees shall be paid to the
49.28commissioner:
49.29    (1) initial course approval, $20 for each hour or fraction of one hour of continuing
49.30education course approval sought. Initial course approval expires on the last day of the
49.3124th 36th month after the course is approved;
49.32    (2) renewal of course approval, $20 per course. Renewal of course approval expires
49.33on the last day of the 24th month after the course is renewed;
50.1    (3) (2) initial sponsor approval, $100. Initial sponsor approval expires on the last
50.2day of the 24th month after the sponsor is approved; and
50.3    (4) (3) renewal of sponsor approval, $20 $100. Renewal of sponsor approval expires
50.4on the last day of the 24th month after the sponsor is renewed.

50.5    Sec. 47. Minnesota Statutes 2010, section 326B.865, is amended to read:
50.6326B.865 SIGN CONTRACTOR; BOND.
50.7    (a) A sign contractor may post a compliance bond with the commissioner,
50.8conditioned that the sign contractor shall faithfully perform duties and comply with laws,
50.9ordinances, rules, and contracts entered into for the installation of signs. The bond must
50.10be renewed biennially and maintained for so long as determined by the commissioner.
50.11The aggregate liability of the surety on the bond to any and all persons, regardless of the
50.12number of claims made against the bond, may not exceed the annual amount of the bond.
50.13The bond may be canceled as to future liability by the surety upon 30 days' written notice
50.14mailed to the commissioner by United States mail.
50.15    (b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a
50.16local unit of government that requires sign contractors to post a compliance bond. The
50.17bond is in lieu of any compliance bond required by a local unit of government.
50.18    (c) For purposes of this section, "sign" means a device, structure, fixture, or
50.19placard using graphics, symbols, or written copy that is erected on the premises of an
50.20establishment including the name of the establishment or identifying the merchandise,
50.21services, activities, or entertainment available on the premises.
50.22(d) Each person giving bond under this section shall pay a biennial bond filing fee of
50.23$100 to the commissioner of labor and industry.
50.24EFFECTIVE DATE.This section is effective January 1, 2012.

50.25    Sec. 48. Minnesota Statutes 2010, section 326B.89, subdivision 6, is amended to read:
50.26    Subd. 6. Verified application. To be eligible for compensation from the fund, an
50.27owner or lessee shall serve on the commissioner a verified application for compensation
50.28on a form approved by the commissioner. The application shall verify the following
50.29information:
50.30    (1) the specific grounds upon which the owner or lessee seeks to recover from
50.31the fund:
50.32    (2) that the owner or the lessee has obtained a final judgment in a court of competent
50.33jurisdiction against a licensee licensed under section 326B.83;
51.1    (3) that the final judgment was obtained against the licensee on the grounds
51.2of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of
51.3performance that arose directly out of a contract directly between the licensee and the
51.4homeowner or lessee that was entered into prior to the cause of action and that occurred
51.5when the licensee was licensed and performing any of the special skills enumerated under
51.6section 326B.802, subdivision 15;
51.7    (4) the amount of the owner's or the lessee's actual and direct out-of-pocket loss on
51.8the owner's residential real estate, on residential real estate leased by the lessee, or on new
51.9residential real estate that has never been occupied or that was occupied by the licensee
51.10for less than one year prior to purchase by the owner;
51.11    (5) that the residential real estate is located in Minnesota;
51.12    (6) that the owner or the lessee is not the spouse of the licensee or the personal
51.13representative of the licensee;
51.14    (7) the amount of the final judgment, any amount paid in satisfaction of the final
51.15judgment, and the amount owing on the final judgment as of the date of the verified
51.16application;
51.17    (8) that the owner or lessee has diligently pursued remedies against all the judgment
51.18debtors and all other persons liable to the judgment debtor in the contract for which the
51.19owner or lessee seeks recovery from the fund; and
51.20    (9) that the verified application is being served within two years after the judgment
51.21became final.
51.22    The verified application must include documents evidencing the amount of the
51.23owner's or the lessee's actual and direct out-of-pocket loss. The owner's and the lessee's
51.24actual and direct out-of-pocket loss shall not include any attorney fees, litigation costs
51.25or fees, interest on the loss, and interest on the final judgment obtained as a result of the
51.26loss or any costs not directly related to the value difference between what was contracted
51.27for and what was provided. Any amount paid in satisfaction of the final judgment shall
51.28be applied to the owner's or lessee's actual and direct out-of-pocket loss. An owner or
51.29lessee may serve a verified application regardless of whether the final judgment has been
51.30discharged by a bankruptcy court. A judgment issued by a court is final if all proceedings
51.31on the judgment have either been pursued and concluded or been forgone, including all
51.32reviews and appeals. For purposes of this section, owners who are joint tenants or tenants
51.33in common are deemed to be a single owner. For purposes of this section, owners and
51.34lessees eligible for payment of compensation from the fund shall not include government
51.35agencies, political subdivisions, financial institutions, and any other entity that purchases,
51.36guarantees, or insures a loan secured by real estate.

52.1    Sec. 49. Minnesota Statutes 2010, section 326B.89, subdivision 8, is amended to read:
52.2    Subd. 8. Administrative hearing. If an owner or a lessee timely serves a request
52.3for hearing under subdivision 7, the commissioner shall request that an administrative law
52.4judge be assigned and that a hearing be conducted under the contested case provisions of
52.5chapter 14 within 45 days after the commissioner received the request for hearing, unless
52.6the parties agree to a later date. The commissioner must notify the owner or lessee of the
52.7time and place of the hearing at least 15 days before the hearing. Upon petition of the
52.8commissioner, the administrative law judge shall continue the hearing up to 60 days and
52.9upon a showing of good cause may continue the hearing for such additional period as the
52.10administrative law judge deems appropriate.
52.11At the hearing the owner or the lessee shall have the burden of proving by substantial
52.12evidence under subdivision 6, clauses (1) to (8). Whenever an applicant's judgment
52.13is by default, stipulation, or consent, or whenever the action against the licensee was
52.14defended by a trustee in bankruptcy, the applicant shall have the burden of proving the
52.15cause of action for fraudulent, deceptive, or dishonest practices, conversion of funds, or
52.16failure of performance. Otherwise, the judgment shall create a rebuttable presumption
52.17of the fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of
52.18performance. This presumption affects the burden of producing evidence.
52.19The administrative law judge shall issue findings of fact, conclusions of law, and
52.20order. If the administrative law judge finds that compensation should be paid to the owner
52.21or the lessee, the administrative law judge shall order the commissioner to make payment
52.22from the fund of the amount it finds to be payable pursuant to the provisions of and in
52.23accordance with the limitations contained in this section. The order of the administrative
52.24law judge shall constitute the final decision of the agency in the contested case. The
52.25commissioner or the owner or lessee may seek judicial review of the administrative law
52.26judge's findings of fact, conclusions of law, and order shall be in accordance with sections
52.2714.63 to 14.69.

52.28    Sec. 50. Minnesota Statutes 2010, section 327.32, subdivision 1a, is amended to read:
52.29    Subd. 1a. Requirement; used manufactured homes. No person shall sell or
52.30offer for sale in this state any used manufactured home manufactured after June 14,
52.311976, or install for occupancy any used manufactured home manufactured after June
52.3214, 1976, unless the used manufactured home complies with the Notice of Compliance
52.33Form as provided in this subdivision. If manufactured after June 14, 1976, the home
52.34must bear a label as required by the secretary. The Notice of Compliance Form shall be
52.35signed by the seller and purchaser indicating which party is responsible for either making
53.1or paying for any necessary corrections prior to the sale and transferring ownership of
53.2the manufactured home.
53.3The Notice of Compliance Form shall be substantially in the following form:
53.4"Notice of Compliance Form as required in Minnesota Statutes,
53.5section 327.32, subdivision 1
53.6This notice must be completed and signed by the purchaser(s) and the seller(s) of the
53.7used manufactured home described in the purchase agreement and on the bottom of this
53.8notice before the parties transfer ownership of a used manufactured home constructed
53.9after June 14, 1976.
53.10Electric ranges and clothes dryers must have required four-conductor cords and plugs. For
53.11the purpose of complying with the requirements of section 327B.06, a licensed retailer or
53.12limited retailer shall retain at least one copy of the form required under this subdivision.
53.13
Complies ..........
Correction required ..........
53.14
Initialed by Responsible Party: Buyer ..........
Seller ..........
53.15Solid fuel-burning fireplaces or stoves must be listed for use in manufactured homes, Code
53.16of Federal Regulations, title 24, section 3280.709 (g), and installed correctly in accordance
53.17with their listing or standards (i.e., chimney, doors, hearth, combustion, or intake, etc.,
53.18Code of Federal Regulations, title 24, section 3280.709 (g)).
53.19
Complies ..........
Correction required ..........
53.20
Initialed by Responsible Party: Buyer ..........
Seller ..........
53.21Gas water heaters and furnaces must be listed for manufactured home use, Code of Federal
53.22Regulations, title 24, section 3280.709 (a) and (d)(1) and (2), and installed correctly, in
53.23accordance with their listing or standards.
53.24
Complies ..........
Correction required ..........
53.25
Initialed by Responsible Party: Buyer ..........
Seller ..........
53.26Smoke alarms are required to be installed and operational in accordance with Code of
53.27Federal Regulations, title 24, section 3280.208.
53.28
Complies ..........
Correction required ..........
53.29
Initialed by Responsible Party: Buyer ..........
Seller ..........
53.30Carbon monoxide alarms or CO detectors that are approved and operational are required
53.31to be installed within ten feet of each room lawfully used for sleeping purposes.
53.32
Complies ..........
Correction required ..........
53.33
Initialed by Responsible Party: Buyer ..........
Seller ..........
54.1Egress windows are required in every bedroom with at least one operable window with
54.2a net clear opening of 20 inches wide and 24 inches high, five square feet in area, with
54.3the bottom of windows opening no more than 36 inches above the floor. Locks, latches,
54.4operating handles, tabs, or other operational devices shall not be located more than 54
54.5inches above the finished floor.
54.6
Complies ..........
Correction required ..........
54.7
Initialed by Responsible Party: Buyer ..........
Seller ..........
54.8The furnace compartment of the home is required to have interior finish with a flame
54.9spread rating not exceeding 25 feet, as specified in the 1976 United States Department of
54.10Housing and Urban Development Code governing manufactured housing construction.
54.11
Complies ..........
Correction required ..........
54.12
Initialed by Responsible Party: Buyer ..........
Seller ..........
54.13The water heater enclosure in this home is required to have interior finish with a flame
54.14spread rating not exceeding 25 feet, as specified in the 1976 United States Department of
54.15Housing and Urban Development Code governing manufactured housing construction.
54.16
Complies ..........
Correction required ..........
54.17
Initialed by Responsible Party: Buyer ..........
Seller ..........
54.18The home complies with the snowload and heat zone requirements for the state of
54.19Minnesota as indicated by the data plate.
54.20
Complies ..........
Correction required ..........
54.21
Initialed by Responsible Party: Buyer ..........
Seller ..........
54.22The parties to this agreement have initialed all required sections and agree by their
54.23signature to complete any necessary corrections prior to the sale or transfer of ownership
54.24of the home described below as listed in the purchase agreement. The state of Minnesota
54.25or a local building official has the authority to inspect the home in the manner described in
54.26Minnesota Statutes, section 327.33, prior to or after the sale to ensure compliance was
54.27properly executed as provided under the Manufactured Home Building Code.
54.28
Signature of Purchaser(s) of Home
54.29
..............................date..............................
..............................date..............................
54.30
...................................................................
...................................................................
54.31
54.32
Print name as appears on purchase
agreement
Print name as appears on purchase
agreement
54.33
Signature of Seller(s) of Home
54.34
..............................date..............................
..............................date..............................
54.35
...................................................................
...................................................................
54.36
Print name and license number, if applicable
Print name and license number, if applicable
55.1
(Street address of home at time of sale)
55.2
................................................................................................................................
55.3
(City/State/Zip).......................................................................................................
55.4
Name of manufacturer of home............................................................................
55.5
Model and year.....................................................................................................
55.6
Serial number........................................................................................................"
55.7EFFECTIVE DATE.This section is effective the day following final enactment.

55.8    Sec. 51. Minnesota Statutes 2010, section 327.32, subdivision 1b, is amended to read:
55.9    Subd. 1b. Alternative design plan. An alternative frost-free design slab for a new
55.10or used manufactured home that is submitted to the local building official, third-party
55.11inspector, or the department, stamped by a licensed professional engineer or architect, and
55.12is as being in compliance with either the federal installation standards in effect at the date
55.13of manufacture, the manufacturer's installation manual, or the Minnesota State Building
55.14Code, when applicable, shall be issued a permit by the department within ten days of
55.15being received by the approving authority.
55.16EFFECTIVE DATE.This section is effective the day following final enactment.

55.17    Sec. 52. Minnesota Statutes 2010, section 327.32, subdivision 1e, is amended to read:
55.18    Subd. 1e. Reinstallation requirements for single-section used manufactured
55.19homes. (a) All single-section used manufactured homes reinstalled less than 24 months
55.20from the date of installation by the first purchaser must be reinstalled in compliance with
55.21subdivision 1c. All single-section used manufactured homes reinstalled more than 24
55.22months from the date of installation by the first purchaser may be reinstalled without
55.23a frost-protected foundation if the home is reinstalled in compliance with Minnesota
55.24Rules, chapter 1350, for above frost-line installations and the notice requirement of
55.25subdivision 1f is complied with by the seller and the purchaser of the single-section used
55.26manufactured home.
55.27(b) The installer shall affix an installation seal issued by the department to the
55.28outside of the home as required by the Minnesota State Building Code. The certificate
55.29of installation issued by the installer of record shall clearly state that the home has been
55.30reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and
55.31for issuance of reinstallation seals shall follow the requirements of sections 326B.802
55.32to 326B.885. Fees for review of plans, specifications, and on-site inspections shall be
55.33those as specified in section 326B.153, subdivision 1, paragraph (c). Whenever an
55.34installation certificate for an above frost-line installation is issued to a single-section used
56.1manufactured home being listed for sale, the purchase agreement must disclose that the
56.2home is installed on a nonfrost-protected foundation and recommend that the purchaser
56.3have the home inspected to determine the effects of frost on the home.
56.4EFFECTIVE DATE.This section is effective the day following final enactment.

56.5    Sec. 53. Minnesota Statutes 2010, section 327.32, subdivision 1f, is amended to read:
56.6    Subd. 1f. Notice requirement. The seller of the single-section used manufactured
56.7home being reinstalled under subdivision 1e shall provide the following notice to the
56.8purchaser and secure signatures of all parties to the purchase agreement on or before
56.9signing a purchase agreement prior to submitting an application for an installation
56.10certificate. Whenever a current owner of a manufactured home reinstalls the manufactured
56.11home under subdivision 1e, the current owner is not required to comply with the notice
56.12requirement under this subdivision. The notice shall be in at least 14-point font, except the
56.13heading, "WHICH MAY VOID WARRANTY," must be in capital letters, in 20-point font.
56.14The notice must be printed on a separate sheet of paper in a color different than the paper
56.15on which the purchase agreement is printed. The notice becomes a part of the purchase
56.16agreement and shall be substantially in the following form:
56.17"Notice of Reinstalling of a Single-Section Used Manufactured Home Above Frost-Line;
56.18WHICH MAY VOID WARRANTY
56.19It is recommended that the single-section used manufactured home being reinstalled
56.20follow the instructions in the manufacturer's installation manual. By signing this notice,
56.21the purchaser(s) are acknowledging they have elected to use footings placed above the
56.22local frost line in accordance with the Minnesota State Building Code.
56.23The seller has explained the differences between the manufacturer's installation
56.24instructions and the installation system selected by the purchaser(s) with respect to
56.25possible effects of frost on the manufactured home.
56.26The purchaser(s) acknowledge by signing this notice that there is no manufacturer's
56.27original warranty remaining on the home and recognize that any other extended or ancillary
56.28warranty could be adversely affected if any applicable warranty stipulates that the home
56.29be installed in accordance with the manufacturer's installation manual to remain effective.
56.30After the reinstallation of the manufactured home, it is highly recommended that the
56.31purchaser(s) have a licensed manufactured home installer recheck the home's installation
56.32for any releveling needs or anchoring system adjustments each freeze-thaw cycle.
57.1The purchaser(s) of the used manufactured home described below that is being reinstalled
57.2acknowledge they have read this notice and have been advised to contact the manufacturer
57.3of the home and/or the Department of Labor and Industry if they desire additional
57.4information before signing this notice. It is the intent of this notice to inform the
57.5purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system
57.6for the reinstallation of the manufactured home as originally required by the home's
57.7installation manual.
57.8Plain language notice.
57.9I understand that because this home will be installed with footings placed above the
57.10local frost line, this home may be subject to adverse effects from frost heave that may
57.11damage this home. Purchaser(s) initials: .......
57.12I understand that the installation of this home with footings placed above the local
57.13frost line could affect my ability to obtain a mortgage or mortgage insurance on this
57.14home. Purchaser(s) initials: .......
57.15I understand that the installation of this home with footings placed above the local
57.16frost line could void my warranty on the home if any warranty is still in place on this
57.17home. Purchaser(s) initials: .......
57.18
Signature of Purchaser(s)
57.19
..............................date..............................
..............................date..............................
57.20
...................................................................
...................................................................
57.21
Print name
Print name
57.22
57.23
(Street address of location where
manufactured home is being reinstalled)
57.24
..............................................................................................................................
57.25
(City/State/Zip)....................................................................................................
57.26
Name of manufacturer of home.........................................................................
57.27
Model and year...................................................................................................
57.28
Serial number.....................................................................................................
57.29Name of licensed installer and license number or homeowner responsible for the
57.30installation of the home as described above.
57.31
Installer name:...................................................................................................
57.32
License number:................................................................................................"
57.33EFFECTIVE DATE.This section is effective the day following final enactment.

57.34    Sec. 54. Minnesota Statutes 2010, section 327.32, subdivision 7, is amended to read:
57.35    Subd. 7. Enforcement. All jurisdictions enforcing the State Building Code, in
57.36accordance with sections 326B.101 to 326B.151, shall undertake or provide for the
58.1administration and enforcement of the manufactured home installation rules promulgated
58.2by the commissioner. Municipalities which have adopted the State Building Code may
58.3provide installation inspection and plan review services in noncode areas of the state.
58.4EFFECTIVE DATE.This section is effective the day following final enactment.

58.5    Sec. 55. Minnesota Statutes 2010, section 327.33, subdivision 2, is amended to read:
58.6    Subd. 2. Fees. The commissioner shall by rule establish reasonable fees for seals,
58.7installation seals and inspections which are sufficient to cover all costs incurred in the
58.8administration of sections 327.31 to 327.35. The commissioner shall also establish by
58.9rule a monitoring inspection fee in an amount that will comply with the secretary's fee
58.10distribution program. This monitoring inspection fee shall be an amount paid by the
58.11manufacturer for each manufactured home produced in Minnesota. The monitoring
58.12inspection fee shall be paid by the manufacturer to the secretary. The rules of the
58.13fee distribution program require the secretary to distribute the fees collected from all
58.14manufactured home manufacturers among states approved and conditionally approved
58.15based on the number of new manufactured homes whose first location after leaving the
58.16manufacturer is on the premises of a distributor, dealer or purchaser in that state. Fees
58.17for inspections in areas that have not adopted the State Building Code must be equal to
58.18the fees for inspections in code areas of the state. Third party vendors may charge their
58.19usual and normal charge for inspections.
58.20EFFECTIVE DATE.This section is effective the day following final enactment.

58.21    Sec. 56. Minnesota Statutes 2010, section 327C.095, subdivision 12, is amended to
58.22read:
58.23    Subd. 12. Payment to the Minnesota manufactured home relocation trust fund.
58.24    (a) If a manufactured home owner is required to move due to the conversion of all or a
58.25portion of a manufactured home park to another use, the closure of a park, or cessation of
58.26use of the land as a manufactured home park, the manufactured park owner shall, upon
58.27the change in use, pay to the commissioner of management and budget for deposit in the
58.28Minnesota manufactured home relocation trust fund under section 462A.35, the lesser
58.29amount of the actual costs of moving or purchasing the manufactured home approved
58.30by the neutral third party and paid by the Minnesota Housing Finance Agency under
58.31subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured
58.32home, and $6,000 for each multisection manufactured home, for which a manufactured
58.33home owner has made application for payment of relocation costs under subdivision 13,
59.1paragraph (c). The manufactured home park owner shall make payments required under
59.2this section to the Minnesota manufactured home relocation trust fund within 60 days of
59.3receipt of invoice from the neutral third party.
59.4    (b) A manufactured home park owner is not required to make the payment prescribed
59.5under paragraph (a), nor is a manufactured home owner entitled to compensation under
59.6subdivision 13, paragraph (a) or (e), if:
59.7    (1) the manufactured home park owner relocates the manufactured home owner to
59.8another space in the manufactured home park or to another manufactured home park at
59.9the park owner's expense;
59.10    (2) the manufactured home owner is vacating the premises and has informed the
59.11manufactured home park owner or manager of this prior to the mailing date of the closure
59.12statement under subdivision 1;
59.13    (3) a manufactured home owner has abandoned the manufactured home, or the
59.14manufactured home owner is not current on the monthly lot rental, personal property taxes;
59.15    (4) the manufactured home owner has a pending eviction action for nonpayment of
59.16lot rental amount under section 327C.09, which was filed against the manufactured home
59.17owner prior to the mailing date of the closure statement under subdivision 1, and the writ
59.18of recovery has been ordered by the district court;
59.19    (5) the conversion of all or a portion of a manufactured home park to another use,
59.20the closure of a park, or cessation of use of the land as a manufactured home park is the
59.21result of a taking or exercise of the power of eminent domain by a governmental entity
59.22or public utility; or
59.23    (6) the owner of the manufactured home is not a resident of the manufactured home
59.24park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
59.25is a resident, but came to reside in the manufactured home park after the mailing date of
59.26the closure statement under subdivision 1.
59.27    (c) If the unencumbered fund balance in the manufactured home relocation trust fund
59.28is less than $1,000,000 as of June 30 of each year, the commissioner of management and
59.29budget shall annually assess each manufactured home park owner by mail the total amount
59.30of $12 for each licensed lot in their park, payable on or before September 15 of each that
59.31year. The commissioner of management and budget shall deposit the any payments in the
59.32Minnesota manufactured home relocation trust fund. On or before July 15 of each year,
59.33the commissioner of management and budget shall prepare and distribute to park owners a
59.34letter explaining whether funds are being collected for that year, information about the
59.35collection, an invoice for all licensed lots, and a sample form for the park owners to
59.36collect information on which park residents have been accounted for. If assessed under
60.1this paragraph, the park owner may recoup the cost of the $12 assessment as a lump
60.2sum or as a monthly fee of no more than $1 collected from park residents together with
60.3monthly lot rent as provided in section 327C.03, subdivision 6. Park owners may adjust
60.4payment for lots in their park that are vacant or otherwise not eligible for contribution to
60.5the trust fund under section 327C.095, subdivision 12, paragraph (b), and deduct from the
60.6assessment accordingly.
60.7    (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
60.8the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
60.9in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
60.10attorney fees, court costs, and disbursements.
60.11EFFECTIVE DATE.This section is effective the day following final enactment.

60.12    Sec. 57. REVISOR'S INSTRUCTION.
60.13The revisor of statutes shall renumber each section of Minnesota Statutes listed in
60.14column A with the number listed in column B. The revisor shall also make necessary
60.15cross-reference changes consistent with the renumbering.
60.16
Column A
Column B
60.17
326B.82, subd. 2
326B.091, subd. 2a
60.18
326B.82, subd. 3
326B.091, subd. 2b
60.19
326b.82, subd. 5
326B.091, subd. 2c
60.20
326B.82, subd. 7
326B.091, subd. 4a
60.21
326B.82, subd. 8
326B.091, subd. 5a
60.22
326B.82, subd. 9
326B.091, subd. 5c
60.23
326B.82, subd. 10
326B.091, subd. 7
60.24
326B.821, subd. 4
326B.0981, subd. 17
60.25
326B.821, subd. 5
326B.0981, subd. 3
60.26
326B.821, subd. 5a
326B.0981, subd. 4
60.27
326B.821, subd. 6
326B.0981, subd. 5
60.28
326B.821, subd. 7
326B.0981, subd. 6
60.29
326B.821, subd. 8
326B.099, subd. 1
60.30
326B.821, subd. 9
326B.099, subd. 2
60.31
326B.821, subd. 10
326B.099, subd. 3
60.32
326B.821, subd. 11
326B.099, subd. 4
60.33
326B.821, subd. 12
326B.0981, subd. 7
60.34
326B.821, subd. 13
326B.0981, subd. 8
60.35
326B.821, subd. 14
326B.0981, subd. 9
60.36
326B.821, subd. 15
326B.0981, subd. 10
60.37
326B.821, subd. 16
326B.0981, subd. 11
60.38
326B.821, subd. 17
326B.099, subd. 5
61.1
326B.821, subd. 18
326B.0981, subd. 12
61.2
326B.821, subd. 19
326B.0981, subd. 13
61.3
326B.821, subd. 20
326B.0981, subd. 14
61.4
326B.821, subd. 22
326B.0981, subd. 2
61.5
326B.821, subd. 23
326B.0981, subd. 15
61.6
326B.821, subd. 24
326B.0981, subd. 16

61.7    Sec. 58. REPEALER.
61.8Minnesota Statutes 2010, sections 326B.82, subdivisions 4 and 6; and 326B.821,
61.9subdivision 3, are repealed.
61.10EFFECTIVE DATE.This section is effective January 1, 2012.