1.1                          A bill for an act 
  1.2             relating to occupations; requiring sign contractors to 
  1.3             be licensed by the state; authorizing the commissioner 
  1.4             of commerce to adopt rules; providing penalties; 
  1.5             appropriating money; amending Minnesota Statutes 1996, 
  1.6             section 116J.70, subdivision 2a; proposing coding for 
  1.7             new law as Minnesota Statutes, chapter 326A. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 116J.70, 
  1.10  subdivision 2a, is amended to read: 
  1.11     Subd. 2a.  [LICENSE; EXCEPTIONS.] "Business license" or 
  1.12  "license" does not include the following:  
  1.13     (1) any occupational license or registration issued by a 
  1.14  licensing board listed in section 214.01 or any occupational 
  1.15  registration issued by the commissioner of health pursuant to 
  1.16  section 214.13; 
  1.17     (2) any license issued by a county, home rule charter city, 
  1.18  statutory city, township, or other political subdivision; 
  1.19     (3) any license required to practice the following 
  1.20  occupation regulated by the following sections:  
  1.21     (a) abstracters regulated pursuant to chapter 386; 
  1.22     (b) accountants regulated pursuant to chapter 326; 
  1.23     (c) adjusters regulated pursuant to chapter 72B; 
  1.24     (d) architects regulated pursuant to chapter 326; 
  1.25     (e) assessors regulated pursuant to chapter 270; 
  1.26     (f) athletic trainers regulated pursuant to chapter 148; 
  2.1      (g) attorneys regulated pursuant to chapter 481; 
  2.2      (h) auctioneers regulated pursuant to chapter 330; 
  2.3      (i) barbers regulated pursuant to chapter 154; 
  2.4      (j) beauticians regulated pursuant to chapter 155A; 
  2.5      (k) boiler operators regulated pursuant to chapter 183; 
  2.6      (l) chiropractors regulated pursuant to chapter 148; 
  2.7      (m) collection agencies regulated pursuant to chapter 332; 
  2.8      (n) cosmetologists regulated pursuant to chapter 155A; 
  2.9      (o) dentists, registered dental assistants, and dental 
  2.10  hygienists regulated pursuant to chapter 150A; 
  2.11     (p) detectives regulated pursuant to chapter 326; 
  2.12     (q) electricians regulated pursuant to chapter 326; 
  2.13     (r) embalmers regulated pursuant to chapter 149; 
  2.14     (s) engineers regulated pursuant to chapter 326; 
  2.15     (t) insurance brokers and salespersons regulated pursuant 
  2.16  to chapter 60A; 
  2.17     (u) certified interior designers regulated pursuant to 
  2.18  chapter 326; 
  2.19     (v) midwives regulated pursuant to chapter 148; 
  2.20     (w) morticians regulated pursuant to chapter 149; 
  2.21     (x) nursing home administrators regulated pursuant to 
  2.22  chapter 144A; 
  2.23     (y) optometrists regulated pursuant to chapter 148; 
  2.24     (z) osteopathic physicians regulated pursuant to chapter 
  2.25  147; 
  2.26     (aa) pharmacists regulated pursuant to chapter 151; 
  2.27     (bb) physical therapists regulated pursuant to chapter 148; 
  2.28     (cc) physician assistants regulated pursuant to chapter 
  2.29  147A; 
  2.30     (dd) physicians and surgeons regulated pursuant to chapter 
  2.31  147; 
  2.32     (ee) plumbers regulated pursuant to chapter 326; 
  2.33     (ff) podiatrists regulated pursuant to chapter 153; 
  2.34     (gg) practical nurses regulated pursuant to chapter 148; 
  2.35     (hh) professional fund raisers regulated pursuant to 
  2.36  chapter 309; 
  3.1      (ii) psychologists regulated pursuant to chapter 148; 
  3.2      (jj) real estate brokers, salespersons, and others 
  3.3   regulated pursuant to chapters 82 and 83; 
  3.4      (kk) registered nurses regulated pursuant to chapter 148; 
  3.5      (ll) sign contractors regulated pursuant to chapter 326A; 
  3.6      (mm) securities brokers, dealers, agents, and investment 
  3.7   advisers regulated pursuant to chapter 80A; 
  3.8      (mm) (nn) steamfitters regulated pursuant to chapter 326; 
  3.9      (nn) (oo) teachers and supervisory and support personnel 
  3.10  regulated pursuant to chapter 125; 
  3.11     (oo) (pp) veterinarians regulated pursuant to chapter 156; 
  3.12     (pp) (qq) water conditioning contractors and installers 
  3.13  regulated pursuant to chapter 326; 
  3.14     (qq) (rr) water well contractors regulated pursuant to 
  3.15  chapter 103I; 
  3.16     (rr) (ss) water and waste treatment operators regulated 
  3.17  pursuant to chapter 115; 
  3.18     (ss) (tt) motor carriers regulated pursuant to chapter 221; 
  3.19     (tt) (uu) professional corporations regulated pursuant to 
  3.20  chapter 319A; 
  3.21     (uu) (vv) real estate appraisers regulated pursuant to 
  3.22  chapter 82B; 
  3.23     (vv) (ww) residential building contractors, residential 
  3.24  remodelers, residential roofers, manufactured home installers, 
  3.25  and specialty contractors regulated pursuant to chapter 326; 
  3.26     (4) any driver's license required pursuant to chapter 171; 
  3.27     (5) any aircraft license required pursuant to chapter 360; 
  3.28     (6) any watercraft license required pursuant to chapter 
  3.29  86B; 
  3.30     (7) any license, permit, registration, certification, or 
  3.31  other approval pertaining to a regulatory or management program 
  3.32  related to the protection, conservation, or use of or 
  3.33  interference with the resources of land, air, or water, which is 
  3.34  required to be obtained from a state agency or instrumentality; 
  3.35  and 
  3.36     (8) any pollution control rule or standard established by 
  4.1   the pollution control agency or any health rule or standard 
  4.2   established by the commissioner of health or any licensing rule 
  4.3   or standard established by the commissioner of human services.  
  4.4                           SIGN CONTRACTORS 
  4.5      Sec. 2.  [326A.01] [DEFINITIONS.] 
  4.6      Subdivision 1.  [APPLICABILITY.] The definitions in this 
  4.7   section apply to sections 326A.01 to 326A.14. 
  4.8      Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  4.9   commissioner of commerce. 
  4.10     Subd. 3.  [LICENSEE.] "Licensee" means a sign contractor 
  4.11  licensed under sections 326A.01 to 326A.14. 
  4.12     Subd. 4.  [SIGN.] "Sign" means a device, structure, 
  4.13  fixture, or placard using graphics, symbols, or written copy 
  4.14  that is erected on the premises of an establishment.  It 
  4.15  consists primarily of the name of the establishment or 
  4.16  identifies merchandise, services, activities, or entertainment 
  4.17  sold, produced, manufactured, or furnished on the premises. 
  4.18     Sec. 3.  [326A.02] [LICENSING REQUIREMENTS.] 
  4.19     Subdivision 1.  [STATEWIDE LICENSE ALLOWED IN LIEU OF LOCAL 
  4.20  LICENSE.] Except as provided in subdivision 3, no person may 
  4.21  engage in the business of erecting, altering, relocating, 
  4.22  constructing, or maintaining signs without a valid license 
  4.23  issued by the commissioner.  
  4.24     Subd. 2.  [PERSONS CONSIDERED LICENSED.] Sign contractors 
  4.25  are considered licensed if the following requirements are met: 
  4.26     (1) for a sole proprietorship, the proprietor is licensed; 
  4.27     (2) for a partnership, a general partner is licensed; 
  4.28     (3) for a limited liability company, a manager is licensed; 
  4.29  and 
  4.30     (4) for a corporation, a chief executive officer, 
  4.31  responsible managing employee, or other person designated by the 
  4.32  corporation is licensed. 
  4.33     Subd. 3.  [EXCEPTIONS.] The license requirement does not 
  4.34  apply to installation of the following signs: 
  4.35     (1) signs used by churches, synagogues, or civic 
  4.36  organizations; 
  5.1      (2) holiday or special events decorations; 
  5.2      (3) nameplates of two square feet or less; 
  5.3      (4) political signs; 
  5.4      (5) public signs or notices, or any sign relating to an 
  5.5   emergency; 
  5.6      (6) real estate signs; 
  5.7      (7) window signs; 
  5.8      (8) signs erected, used, or maintained on a farm by the 
  5.9   owner or lessee of the farm and relating solely to farm produce, 
  5.10  merchandise, service, or entertainment sold, produced, 
  5.11  manufactured, or furnished on the farm; and 
  5.12     (9) official notices or advertisements posted or displayed 
  5.13  on private property by or under the direction of any public or 
  5.14  court officer in the performance of official duties, or by 
  5.15  trustees under deeds of trust or deeds of assignment or other 
  5.16  similar instruments. 
  5.17     Sec. 4.  [326A.03] [FEES.] 
  5.18     The commissioner shall establish fees for sign 
  5.19  contractors.  The commissioner may adjust the fees under section 
  5.20  16A.1285 to recover the costs of administration and enforcement. 
  5.21  The fees must be limited to the cost of license administration 
  5.22  and enforcement and must be deposited in the state treasury and 
  5.23  credited to the general fund. 
  5.24     Sec. 5.  [326A.04] [CONTINUING EDUCATION.] 
  5.25     The commissioner may adopt standards for continuing 
  5.26  education requirements and course approval. 
  5.27     Sec. 6.  [326A.05] [TEMPORARY LICENSES.] 
  5.28     A temporary license must be issued to a sign contractor if 
  5.29  the person who obtained a license under section 326A.02, 
  5.30  subdivision 2, clauses (2) to (4), leaves the partnership, 
  5.31  limited liability company, or corporation because of death, 
  5.32  disability, retirement, or position change.  A temporary license 
  5.33  expires after one year and may not be renewed. 
  5.34     Sec. 7.  [326A.06] [APPLICATION AND EXAMINATION.] 
  5.35     Subdivision 1.  [FORM.] An applicant for a license under 
  5.36  sections 326A.01 to 326A.14 must submit an application to the 
  6.1   commissioner, under oath, on a form prescribed by the 
  6.2   commissioner.  Within 30 business days of receiving all required 
  6.3   information, the commissioner must act on the license request.  
  6.4   If one of the categories in the application does not apply, the 
  6.5   applicant must state the reason.  The commissioner may refuse to 
  6.6   issue a license if the application is not complete or contains 
  6.7   unsatisfactory information.  
  6.8      Subd. 2.  [CONTENTS.] The application must include the 
  6.9   following information regarding the applicant: 
  6.10     (1) Minnesota workers' compensation insurance account 
  6.11  number; 
  6.12     (2) employment insurance account number; 
  6.13     (3) type of license requested; 
  6.14     (4) name and address of the applicant if the applicant is a 
  6.15  sole proprietorship; of each partner if the applicant is a 
  6.16  partnership; of each manager if the applicant is a limited 
  6.17  liability company; and of each of the corporate officers, 
  6.18  directors, and all shareholders holding more than five percent 
  6.19  of the outstanding stock in the corporation; 
  6.20     (5) whether the applicant has ever been licensed in any 
  6.21  other state and has had a professional or vocational license 
  6.22  refused, suspended, or revoked; 
  6.23     (6) whether the applicant or any of its corporate or 
  6.24  partnership directors, officers, limited or general partners, 
  6.25  managers, or all shareholders holding more than five percent of 
  6.26  the outstanding stock of the corporation has been convicted of a 
  6.27  crime that either related directly to the business for which the 
  6.28  license is sought or involved fraud, misrepresentation, or 
  6.29  misuse of funds; has suffered a judgment in a civil action 
  6.30  involving fraud, misrepresentation, negligence, or breach of 
  6.31  contract, or conversion within the ten years prior to the 
  6.32  submission of the application; or has had any government license 
  6.33  or permit suspended or revoked as a result of an action brought 
  6.34  by a federal, state, or local governmental unit or agency in 
  6.35  this or any other state; and 
  6.36     (7) the applicant's business history for the past five 
  7.1   years and whether the applicant has ever filed for bankruptcy or 
  7.2   protection from creditors or has any unsatisfied judgments 
  7.3   against the applicant. 
  7.4      The commissioner may require further information necessary 
  7.5   to administer the provisions and further the purposes of 
  7.6   sections 326A.01 to 326A.14. 
  7.7      Subd. 3.  [EXAMINATION.] (a) Except as described in 
  7.8   paragraph (b), all individual applicants must satisfactorily 
  7.9   complete a written examination for the type of license 
  7.10  requested.  The commissioner may establish the examination 
  7.11  qualifications, including related education experience and 
  7.12  education, the examination procedure, and the examination for 
  7.13  each licensing group.  The examination must include at a minimum 
  7.14  the following areas: 
  7.15     (1) appropriate knowledge of technical terms commonly used 
  7.16  and the knowledge of reference materials and code books to be 
  7.17  used for technical information; and 
  7.18     (2) understanding of the general principles of business 
  7.19  management and other pertinent state laws. 
  7.20     Each examination must be designed for the specified type of 
  7.21  license requested.  The council shall advise the commissioner on 
  7.22  the grading, monitoring, and updating of examinations. 
  7.23     (b) The commissioner shall adopt rules providing that 
  7.24  individual applicants who have specified minimum levels of 
  7.25  experience or education need not complete the written 
  7.26  examination. 
  7.27     Sec. 8.  [326A.07] [DENIAL, SUSPENSION, OR REVOCATION OF 
  7.28  LICENSES.] 
  7.29     Subdivision 1.  [CAUSE.] The commissioner may by order 
  7.30  deny, suspend, or revoke any license or may censure a licensee 
  7.31  if the commissioner finds that the order is in the public 
  7.32  interest, and that the applicant or licensee:  
  7.33     (1) has filed an application for a license that is 
  7.34  incomplete in any material respect or contains any statement 
  7.35  which, in light of the circumstances under which it is made, is 
  7.36  false or misleading with respect to any material fact; 
  8.1      (2) has engaged in a fraudulent, deceptive, or dishonest 
  8.2   practice; 
  8.3      (3) is permanently or temporarily enjoined by any court of 
  8.4   competent jurisdiction from engaging in or continuing any 
  8.5   conduct or practice involving any aspect of the business; 
  8.6      (4) has failed to reasonably supervise employees, agents, 
  8.7   subcontractors, or salespersons, or has performed negligently or 
  8.8   in breach of contract, so as to cause injury or harm to the 
  8.9   public; 
  8.10     (5) has violated or failed to comply with any provision of 
  8.11  sections 326A.01 to 326A.14 or any rule or order under sections 
  8.12  326A.01 to 326A.14; 
  8.13     (6) has been shown to be incompetent, untrustworthy, or 
  8.14  financially irresponsible; 
  8.15     (7) has been convicted of a violation of the state building 
  8.16  code; 
  8.17     (8) has failed to use the proceeds of any payment made to 
  8.18  the licensee for sign installation for the payment of labor, 
  8.19  skill, material, and machinery contributed to the construction 
  8.20  or improvement, knowing that the cost of any labor performed, or 
  8.21  skill, material, or machinery furnished for the improvement 
  8.22  remains unpaid; or 
  8.23     (9) has not furnished to the person making payment either a 
  8.24  valid lien waiver as to any unpaid labor performed, or skill, 
  8.25  material, or machinery furnished for an improvement, or a 
  8.26  payment bond in the basic amount of the contract price for the 
  8.27  improvement conditioned for the prompt payment to any person or 
  8.28  persons entitled to payment. 
  8.29     Subd. 2.  [ADMINISTRATIVE ACTION.] Section 45.027 applies 
  8.30  to any action taken by the commissioner in connection with the 
  8.31  administration of sections 326A.01 to 326A.14. 
  8.32     Sec. 9.  [326A.08] [PENALTIES.] 
  8.33     Subdivision 1.  [MISDEMEANOR.] A person required to be 
  8.34  licensed under sections 326A.01 to 326A.14 who performs 
  8.35  unlicensed work as a sign contractor is guilty of a misdemeanor. 
  8.36     Subd. 2.  [LIEN RIGHTS.] An unlicensed person who knowingly 
  9.1   violates sections 326A.01 to 326A.14 has no right to claim a 
  9.2   lien under section 514.01.  Nothing in this section affects the 
  9.3   lien rights of material suppliers and licensed contractors to 
  9.4   the extent provided by law. 
  9.5      Subd. 3.  [COMMISSIONER ACTION.] The commissioner may bring 
  9.6   actions, including cease and desist actions, against an 
  9.7   unlicensed or licensed sign contractor to protect the public 
  9.8   health, safety, and welfare. 
  9.9      Sec. 10.  [326A.09] [SERVICE OF PROCESS; NONRESIDENT 
  9.10  LICENSING.] 
  9.11     Subdivision 1.  [LICENSE.] A nonresident of Minnesota may 
  9.12  be licensed as a sign contractor upon compliance with all the 
  9.13  provisions of sections 326A.01 to 326A.14. 
  9.14     Subd. 2.  [SERVICE OF PROCESS.] Service of process upon a 
  9.15  person performing work in the state of a type that would require 
  9.16  a license under sections 326A.01 to 326A.14 may be made as 
  9.17  provided in section 45.028. 
  9.18     Sec. 11.  [326A.10] [BOND; INSURANCE.] 
  9.19     Subdivision 1.  [BOND.] (a) Sign contractors licensed under 
  9.20  section 326A.02 must post a license bond with the commissioner, 
  9.21  conditioned that the applicant shall faithfully perform the 
  9.22  duties and in all things comply with all laws, ordinances, and 
  9.23  rules pertaining to the license or permit applied for and all 
  9.24  contracts entered into.  The annual bond must be continuous and 
  9.25  maintained for so long as the licensee remains licensed.  The 
  9.26  aggregate liability of the surety on the bond to any and all 
  9.27  persons, regardless of the number of claims made against the 
  9.28  bond, may not exceed the amount of the bond.  The bond may be 
  9.29  canceled as to future liability by the surety upon 30 days 
  9.30  written notice mailed to the commissioner by regular mail. 
  9.31     (b) The commissioner shall establish by rule a bond scale 
  9.32  based on the gross annual receipts of the licensee. 
  9.33     Subd. 2.  [INSURANCE.] Sign contractors must have public 
  9.34  liability insurance with limits of at least $300,000 per 
  9.35  occurrence and $10,000 property damage insurance.  The 
  9.36  commissioner may increase the minimum amount of insurance 
 10.1   required based on the type of license and the annual gross 
 10.2   receipts of the licensee. 
 10.3      Sec. 12.  [326A.11] [LICENSE NUMBER; ADVERTISING.] 
 10.4      Subdivision 1.  [LICENSE NUMBER MUST BE DISPLAYED.] The 
 10.5   license number of a licensee must be placed on all sign permits 
 10.6   and sign permit applications made to or issued by the state or a 
 10.7   political subdivision.  License numbers must be on all business 
 10.8   cards and all contracts to perform work for which a license is 
 10.9   required. 
 10.10     Subd. 2.  [ADVERTISING.] The license number of a licensee 
 10.11  must appear in any display advertising by that licensee.  
 10.12     Subd. 3.  [CONTRACTS.] Contracts entered into by a licensee 
 10.13  must state that the person is licensed and must state the 
 10.14  license number. 
 10.15     Subd. 4.  [NOTICES.] License numbers must appear on each 
 10.16  notice under section 514.011, and each statement under section 
 10.17  514.08. 
 10.18     Sec. 13.  [326A.12] [LICENSE RENEWAL.] 
 10.19     Subdivision 1.  [APPROVAL.] Licensees whose applications 
 10.20  have been properly and timely filed and who have not received 
 10.21  notice of denial of renewal are considered to have been approved 
 10.22  for renewal and may continue to transact business whether or not 
 10.23  the renewed license has been received.  Application for renewal 
 10.24  of a license is required every two years after the initial 
 10.25  issuance.  Applications are timely if received or postmarked by 
 10.26  December 15 of the year prior to the renewal year.  Applications 
 10.27  must be made on a form approved by the commissioner. 
 10.28     Subd. 2.  [FAILURE TO APPLY.] A person who has failed to 
 10.29  make a timely application for renewal of a license by March 31 
 10.30  of the renewal year is unlicensed until the license has been 
 10.31  issued by the commissioner and is received by the applicant. 
 10.32     Sec. 14.  [326A.13] [RULES.] 
 10.33     The commissioner shall adopt rules to administer and 
 10.34  enforce sections 326A.01 to 326A.14. 
 10.35     Sec. 15.  [326A.14] [INITIAL TEMPORARY LICENSES.] 
 10.36     Sign contractors must obtain a temporary license, which is 
 11.1   effective as of July 1, 1998.  The commissioner may stagger the 
 11.2   temporary licenses so that approximately one-half of the 
 11.3   licenses will expire on August 1, 1999, and the other one-half 
 11.4   on March 31, 1999. 
 11.5      Sec. 16.  [APPROPRIATION.] 
 11.6      $....... is appropriated from the general fund to the 
 11.7   commissioner of commerce to administer sections 2 to 15.