HF 1767

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:54am

A bill for an act
relating to construction; requiring registration of unlicensed contractors and
subcontractors; imposing a fee; imposing penalties; proposing coding for new
law in Minnesota Statutes, chapter 326B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [326B.881] REGISTRATION OF UNLICENSED PERSONS.
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new text begin Subdivision 1. new text end

new text begin Registration required. new text end

new text begin (a) An unlicensed person who performs
public or private sector commercial or residential building construction or improvement
services must register with the commissioner every two years. A licensed person includes
a plumbing contractor who has in their employ a licensed master plumber or restricted
master plumber under section 326B.42 or a mechanical contractor as defined under section
326B.802. The registration must be submitted on a form and in a manner prescribed by
the commissioner and must include the information specified in paragraphs (b) to (d).
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new text begin (b) For individuals, the registration must include:
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new text begin (1) the person's full name, residence address, and telephone number;
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new text begin (2) the person's business address, e-mail address, and telephone number;
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new text begin (3) the name under which the person conducts business if other than the person's
full name;
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new text begin (4) the services provided;
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new text begin (5) Social Security number or federal employer identification number; and
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new text begin (6) a certificate of insurance showing workers' compensation coverage if applicable.
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new text begin (c) For limited liability companies and corporations, the registration must include
the following information for any individual who is a member, governor, officer, director,
or owner of more than ten percent of the business entity:
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new text begin (1) full name;
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new text begin (2) title within the business entity;
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new text begin (3) share of ownership of the business entity; and
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new text begin (4) Social Security number or federal employer identification number.
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new text begin (d) Limited liability companies, corporations, partnerships, and other business
entities must provide the following information:
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new text begin (1) the legal name under which the business entity intends to offer services;
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new text begin (2) the address at which the business entity is physically located;
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new text begin (3) the business telephone number and e-mail address;
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new text begin (4) the services provided by the business entity;
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new text begin (5) a federal employer identification number;
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new text begin (6) the approximate number of employees; and
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new text begin (7) a certificate of insurance showing workers' compensation coverage if applicable.
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new text begin Subd. 2. new text end

new text begin Exclusions. new text end

new text begin For purposes of this section, building construction and
improvement services do not include the manufacture, supply, or sale of products,
materials, or merchandise.
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new text begin Subd. 3. new text end

new text begin Application of requirements. new text end

new text begin The registration requirements under this
section do not apply to persons with a valid independent contractor exemption certificate
under section 181.723.
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new text begin Subd. 4. new text end

new text begin Fees. new text end

new text begin A $100 registration fee shall be paid to the commissioner upon
registration.
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new text begin Subd. 5. new text end

new text begin Prohibited activities. new text end

new text begin A person violating the requirements of this section
shall not perform public or private sector commercial or residential building construction
or improvement services in this state. Proof of registration must be maintained for at
least two years from the date of registration. Proof of registration must be provided by a
person before entering into a contract for public or private sector commercial or residential
building construction or improvement services on or after the effective date of this section.
Violations of this subdivision are subject to a $500 fine payable to the commissioner for
deposit into the assigned risk safety account under chapter 79.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2010.
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