HF 2781

2nd Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

KEY: ~~stricken~~ = removed, old language.

underscored = added, new language.

Version List HF2781 Authors and Status

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Engrossments
Introduction PDF	Posted on 02/05/2010
1st Engrossment PDF	Posted on 03/08/2010
2nd Engrossment PDF	Posted on 04/12/2010
3rd Engrossment PDF	Posted on 04/19/2010

Committee Engrossments
1st Committee Engrossment PDF	Posted on 03/04/2010
2nd Committee Engrossment PDF	Posted on 03/26/2010

1.1A bill for an act 1.2relating to economic development, labor, and industry; modifying grant 1.3and loan programs; modifying duties; making technical charges; defining 1.4terms; creating the Minnesota Science and Technology Authority; modifying 1.5licensing provisions; imposing and modifying fees; modifying construction 1.6codes; requesting a study; requiring reports; appropriating money;amending 1.7Minnesota Statutes 2008, sections 116J.435, as amended; 116J.437, subdivision 1.81; 116J.8731, subdivisions 1, 4; 116J.996; 116L.665, subdivisions 3, 6, by 1.9adding a subdivision; 136F.06, by adding a subdivision; 268.035, by adding 1.10subdivisions; 268.085, subdivision 16; 268.095, subdivision 5; 268.101, by 1.11adding a subdivision; 268.184, subdivision 1; 326B.133, subdivisions 1, 3, 1.128, 11, by adding subdivisions; 326B.197; 326B.33, subdivisions 18, 20, 21; 1.13326B.42, by adding subdivisions; 326B.44; 326B.46, as amended; 326B.47; 1.14326B.475, subdivision 2; 326B.50, by adding subdivisions; 326B.54; 326B.55, as 1.15amended; 326B.56, as amended; 326B.805, subdivision 6; 326B.83, subdivisions 1.161, 3, 6; 326B.865; 326B.921, subdivisions 2, 4, 7; 326B.922; 326B.978, 1.17subdivision 2, by adding a subdivision; 327.31, subdivision 17, by adding 1.18subdivisions; 327.32, subdivision 1, by adding subdivisions; 327.34, subdivision 1.191; 327B.04, subdivision 2; 471.59, subdivision 10; Minnesota Statutes 2009 1.20Supplement, sections 116J.8731, subdivision 3; 268.035, subdivision 23a; 1.21268.095, subdivisions 2, 6; 268.105, subdivision 1; 326B.33, subdivision 1.2219; 326B.475, subdivision 4; 326B.49, subdivision 1; 326B.58; 326B.815, 1.23subdivision 1; 326B.86, subdivision 1; 326B.94, subdivision 4; 326B.986, 1.24subdivision 5; 327B.04, subdivisions 7, 7a, 8; 327B.041; Laws 2009, chapter 78, 1.25article 1, section 3, subdivision 2; proposing coding for new law in Minnesota 1.26Statutes, chapters 116L; 326B; proposing coding for new law as Minnesota 1.27Statutes, chapter 116W; repealing Minnesota Statutes 2008, sections 116J.657; 1.28326B.133, subdivisions 9, 10; 326B.37, subdivision 13; 326B.475, subdivisions 1.295, 6; 326B.56, subdivision 3; 326B.885, subdivisions 3, 4; 326B.976; 327.32, 1.30subdivision 4; 327C.07, subdivisions 3a, 8; Minnesota Statutes 2009 Supplement, 1.31section 326B.56, subdivision 4; Minnesota Rules, parts 1301.0500; 1301.0900; 1.321301.1100, subparts 2, 3, 4; 1350.7200, subpart 3; 1350.8000, subpart 2. 1.33BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.1 Section 1. Minnesota Statutes 2008, section 116J.435, as amended by Laws 2009, 2.2chapter 35, sections 1, 2; and Laws 2009, chapter 78, article 2, section 12, is amended to 2.3read: 2.4116J.435 BIOSCIENCE AND CLEAN ENERGY BUSINESS DEVELOPMENT 2.5PUBLIC INFRASTRUCTURE GRANT PROGRAM. 2.6 Subdivision 1. Creation of account. A bioscience and clean energy business 2.7development public infrastructure account is created in the bond proceeds fund. Money 2.8in the account may only be used for capital costs of public infrastructure for eligible 2.9bioscience and clean energy business development projects. 2.10 Subd. 2. Definitions. For purposes of this section: 2.11(1) "local governmental unit" means a county, city, town, special district, public 2.12higher education institution, or other political subdivision or public corporation; 2.13(2) "governing body" means the council, board of commissioners, board of trustees, 2.14board of regents, or other body charged with governing a local governmental unit; 2.15(3) "public infrastructure" means publicly owned physical infrastructure in this state, 2.16including, but not limited to, wastewater collection and treatment systems, drinking water 2.17systems, storm sewers, utility extensions, telecommunications infrastructure, streets, 2.18roads, bridges, parking ramps, facilities that support basic science and clinical research, 2.19and research infrastructure; and 2.20(4) "eligible project" means: 2.21(i) a bioscience business development capital improvement project in this state, 2.22including: manufacturing; technology; warehousing and distribution; research and 2.23development; bioscience business incubator; agricultural bioprocessing; or industrial, 2.24office, or research park development that would be used by a bioscience-based business.; or 2.25(ii) a clean energy business development capital improvement project in this state; 2.26(5) "clean energy business" means a business that furthers the development of 2.27Minnesota's green economy; and 2.28(6) "green economy" has the meaning given in section 116J.437. 2.29 Subd. 3. Grant program established. (a) The commissioner shall make 2.30competitive grants to local governmental units to acquire and prepare land on which 2.31public infrastructure required to support an eligible project will be located, including 2.32demolition of structures and remediation of any hazardous conditions on the land, or to 2.33predesign, design, acquire, construct, furnish, and equip public infrastructure required to 2.34support an eligible project. The local governmental unit receiving a grant must provide for 2.35the remainder of the public infrastructure costs from other sources. The commissioner 2.36may waive the requirements related to an eligible project under subdivision 2 if a project 3.1would be eligible under this section but for the fact that its location requires infrastructure 3.2improvements to residential development. 3.3(b) The amount of a grant may not exceed the lesser of the cost of the public 3.4infrastructure or 50 percent of the sum of the cost of the public infrastructure plus the cost 3.5of the completed eligible project. 3.6(c) The purpose of the program is to keep or enhance jobs in the area, increase the 3.7tax base, or to expand or create new economic development through the growth of new 3.8bioscience businesses and organizations. 3.9 Subd. 4. Application. (a) The commissioner must develop forms and procedures 3.10for soliciting and reviewing applications for grants under this section. At a minimum, a 3.11local governmental unit must include the following information in its application: 3.12(1) a resolution of its governing body certifying that the money required to be 3.13supplied by the local governmental unit to complete the public infrastructure is available 3.14and committed; 3.15(2) a detailed estimate, along with necessary supporting evidence, of the total 3.16development costs for the public infrastructure and eligible project; 3.17(3) an assessment of the potential or likely use of the site for bioscience or clean 3.18energy activities after completion of the public infrastructure and eligible project; 3.19(4) a timeline indicating the major milestones of the public infrastructure and eligible 3.20project and their anticipated completion dates; 3.21(5) a commitment from the governing body to repay the grant if the milestones are 3.22not realized by the completion date identified in clause (4); and 3.23(6) any additional information or material the commissioner prescribes. 3.24(b) The determination of whether to make a grant under subdivision 3 is within the 3.25discretion of the commissioner, subject to this section. The commissioner's decisions and 3.26application of the priorities are not subject to judicial review, except for abuse of discretion. 3.27 Subd. 5. Priorities. (a) If applications for grants exceed the available appropriations, 3.28grants must be made for public infrastructure that, in the commissioner's judgment, 3.29provides the highest return in public benefits for the public costs incurred. "Public benefits" 3.30include job creation, environmental benefits to the state and region, efficient use of public 3.31transportation, efficient use of existing infrastructure, provision of affordable housing, 3.32multiuse development that constitutes community rebuilding rather than single-use 3.33development, crime reduction, blight reduction, community stabilization, and property tax 3.34base maintenance or improvement. In making this judgment, the commissioner shall give 3.35priority to eligible projects with one or more of the following characteristics: 4.1(1) the potential of the local governmental unit to attract viable bioscience or clean 4.2energy businesses; 4.3(2) proximity to public transit if located in a metropolitan county, as defined in 4.4section 473.121, subdivision 4; 4.5(3) multijurisdictional eligible projects that take into account the need for affordable 4.6housing, transportation, and environmental impact; 4.7(4) the eligible project is not relocating substantially the same operation from another 4.8location in the state, unless the commissioner determines the eligible project cannot be 4.9reasonably accommodated within the local governmental unit in which the business is 4.10currently located, or the business would otherwise relocate to another state or country; and 4.11(5) the number of jobs that will be created. 4.12(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 4.13commissioner may weigh each factor, depending upon the facts and circumstances, as 4.14the commissioner considers appropriate. 4.15 Subd. 6. Cancellation of grant. If a grant is awarded to a local governmental unit 4.16and funds are not encumbered for the grant within four years after the award date, the 4.17grant must be canceled. 4.18 Subd. 7. Repayment of grant. If an eligible project supported by public 4.19infrastructure funded with a grant awarded under this section is not occupied by a 4.20bioscience or clean energy business in accordance with the grant application under 4.21subdivision 4 within five years after the date of the last grant payment, the grant recipient 4.22must repay the amount of the grant received. The commissioner must deposit all money 4.23received under this subdivision into the state treasury and credit it to the debt service 4.24account in the state bond fund. 4.25 Sec. 2. Minnesota Statutes 2008, section 116J.437, subdivision 1, is amended to read: 4.26 Subdivision 1. Definitions. (a) For the purpose of this section, the following terms 4.27have the meanings given. 4.28(b) "Green economy" means products, processes, methods, technologies, or services 4.29intended to do one or more of the following: 4.30 (1) increase the use of energy from renewable sources, including through achieving 4.31the renewable energy standard established in section 216B.1691; 4.32 (2) achieve the statewide energy-savings goal established in section 216B.2401, 4.33including energy savings achieved by the conservation investment program under section 4.34216B.241 ; 5.1 (3) achieve the greenhouse gas emission reduction goals of section 216H.02, 5.2subdivision 1, including through reduction of greenhouse gas emissions, as defined in 5.3section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, 5.4but not limited to, carbon capture, storage, or sequestration; 5.5 (4) monitor, protect, restore, and preserve the quality of surface waters, including 5.6actions to further the purposes of the Clean Water Legacy Act as provided in section 5.7114D.10, subdivision 1 ; or 5.8 (5) expand the use of biofuels, including by expanding the feasibility or reducing the 5.9cost of producing biofuels or the types of equipment, machinery, and vehicles that can 5.10use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 5.1141A.10, subdivision 2 , and 41A.11; or 5.12(6) increase the use of green chemistry, as defined in section 116.9401. 5.13For the purpose of clause (3), "green economy" includes strategies that reduce carbon 5.14emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 5.15transit or otherwise reducing commuting for employees. 5.16EFFECTIVE DATE.This section is effective the day following final enactment. 5.17 Sec. 3. Minnesota Statutes 2008, section 116J.8731, subdivision 1, is amended to read: 5.18 Subdivision 1. Purpose. The Minnesota investment fund is created to provide 5.19financial and technical assistance, through partnership with communities, for the creation 5.20of new employment or to maintain existing employment, and for business start-up, 5.21expansions, and retention. It shall accomplish these goals by the following means: 5.22(1) creation or retention of permanent private-sector jobs in order to create 5.23above-average economic growth consistent with environmental protection, which includes 5.24investments in technology and equipment that increase productivity and provide for a 5.25higher wage; 5.26(2) stimulation or leverage of private investment to ensure economic renewal and 5.27competitiveness; 5.28(3) increasing the local tax base, based on demonstrated measurable outcomes, to 5.29guarantee a diversified industry mix; 5.30(4) improving the quality of existing jobs, based on increases in wages or 5.31improvements in the job duties, training, or education associated with those jobs; 5.32(5) improvement of employment and economic opportunity for citizens in the region 5.33to create a reasonable standard of living, consistent with federal and state guidelines 5.34on low- to moderate-income persons; and 6.1(6) stimulation of productivity growth through improved manufacturing or new 6.2technologies, including cold weather testing. 6.3 Sec. 4. Minnesota Statutes 2009 Supplement, section 116J.8731, subdivision 3, is 6.4amended to read: 6.5 Subd. 3. Eligible expenditures. The money appropriated for this section may be 6.6used to fund: 6.7(1) fund grants for infrastructure, loans, loan guarantees, interest buy-downs, and 6.8other forms of participation with private sources of financing, provided that a loan to a 6.9private enterprise must be for a principal amount not to exceed one-half of the cost of the 6.10project for which financing is sought; and 6.11(2) fund strategic investments in renewable energy market development, such as 6.12low interest loans for renewable energy equipment manufacturing, training grants to 6.13support renewable energy workforce, development of a renewable energy supply chain 6.14that represents and strengthens the industry throughout the state, and external marketing 6.15to garner more national and international investment into Minnesota's renewable sector. 6.16Expenditures in external marketing for renewable energy market development are not 6.17subject to the limitations in clause (1).; and 6.18(3) provide private entrepreneurs with training, other technical assistance, and 6.19financial assistance as provided in the small cities development block grant program. 6.20 Sec. 5. Minnesota Statutes 2008, section 116J.8731, subdivision 4, is amended to read: 6.21 Subd. 4. Eligible projects. Assistance must be evaluated on the existence of the 6.22following conditions: 6.23 (1) creation of new jobs, retention of existing jobs, or improvements in the quality of 6.24existing jobs as measured by the wages, skills, or education associated with those jobs; 6.25 (2) increase in the tax base; 6.26 (3) the project can demonstrate that investment of public dollars induces private 6.27funds; 6.28 (4) the project can demonstrate an excessive public infrastructure or improvement 6.29cost beyond the means of the affected community and private participants in the project; 6.30 (5) the project provides higher wage levels to the community or will add value to 6.31current workforce skills; 6.32(6) the project supports the development of microenterprises, as defined by federal 6.33statutes, through financial assistance, technical assistance, advice, or business services; 6.34 (6) (7) whether assistance is necessary to retain existing business; 7.1 (7) (8) whether assistance is necessary to attract out-of-state business; and 7.2 (8) (9) the project promotes or advances the green economy as defined in section 7.3116J.437 . 7.4 A grant or loan cannot be made based solely on a finding that the conditions in 7.5clause (6) (7) or (7) (8) exist. A finding must be made that a condition in clause (1), (2), 7.6(3), (4), or (5), or (6) also exists. 7.7 Applications recommended for funding shall be submitted to the commissioner. 7.8 Sec. 6. Minnesota Statutes 2008, section 116J.996, is amended to read: 7.9116J.996 MILITARY RESERVIST ECONOMIC INJURY AND 7.10VETERAN-OWNED SMALL BUSINESS LOANS. 7.11 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this 7.12section. 7.13 (b) "Active service" has the meaning given in section 190.05. 7.14 (c) "Commissioner" means the commissioner of employment and economic 7.15development. 7.16 (d) "Eligible business" means a small business, as defined in section 645.445, that 7.17was operating in Minnesota on the date a military reservist received orders for active 7.18service. 7.19 (e) "Essential employee" means a military reservist who is an owner or employee 7.20of an eligible business and whose managerial or technical expertise is critical to the 7.21day-to-day operation of the eligible business. 7.22 (f) "Military reservist" means a member of the reserve component of the armed 7.23forces. 7.24 (g) "Reserve component of the armed forces" has the meaning given it in United 7.25States Code, title 10, section 101(c). 7.26 (h) "Substantial economic injury" means an economic harm to an eligible business 7.27that results in the inability of the eligible business to: 7.28 (1) meet its obligations as they mature; 7.29 (2) pay its ordinary and necessary operating expenses; or 7.30 (3) manufacture, produce, market, or provide a product or service ordinarily 7.31manufactured, produced, marketed, or provided by the eligible business. 7.32(i) "Veteran-owned small business" means a small business, as defined in section 7.33645.445, that is majority-owned and operated by a recently separated veteran. 7.34 Subd. 2. Loan program. The commissioner may make onetime, interest-free 7.35loans of up to $20,000 per borrower to: 8.1(1) eligible businesses that have sustained or are likely to sustain substantial 8.2economic injury as a result of the call to active service for 180 days or more of an essential 8.3employee; or 8.4(2) recently separated veterans who are veterans as defined in section 197.447, 8.5and have served in active military service, at any time on or after September 11, 2001, 8.6to start a veteran-owned small business. 8.7Loans for economic injury must be made for the purpose of preventing, remedying, or 8.8ameliorating the substantial economic injury. 8.9 Subd. 3. Revolving loan account. The commissioner shall use money appropriated 8.10for the purpose to establish a revolving loan account. All repayments of loans made 8.11under this section must be deposited into this account. Interest earned on money in the 8.12account accrues to the account. Money in the account is appropriated to the commissioner 8.13for purposes of the loan program created in this section, including costs incurred by the 8.14commissioner to establish and administer the program. 8.15 Subd. 4. Rules. Using the expedited rulemaking procedures of section 14.389, the 8.16commissioner shall develop and publish expedited rules for loan applications, use of 8.17funds, needed collateral, terms of loans, and other details of military reservist economic 8.18injury and veteran-owned small business loans. 8.19 Sec. 7. Minnesota Statutes 2008, section 116L.665, subdivision 3, is amended to read: 8.20 Subd. 3. Purpose; duties. The governor's Workforce Development Council shall 8.21replace the governor's Job Training Council and assume all of its requirements, duties, 8.22and responsibilities under the Workforce Investment Act. Additionally, the Workforce 8.23Development Council shall assume the following duties and responsibilities: 8.24(a) Review the provision of services and the use of funds and resources under 8.25applicable federal human resource programs and advise the governor on methods of 8.26coordinating the provision of services and the use of funds and resources consistent with 8.27the laws and regulations governing the programs. For purposes of this section, applicable 8.28federal and state human resource programs mean the: 8.29(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.; 8.30(2) Carl D. Perkins Vocational and Applied Technology Education Act, United 8.31States Code, title 20, section 2301, et seq.; 8.32(3) Adult Education Act, United States Code, title 20, section 1201, et seq.; 8.33(4) Wagner-Peyser Act, United States Code, title 29, section 49; 8.34(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF); 9.1(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp 9.2Employment and Training Program, United States Code, title 7, section 2015(d)(4); and 9.3(7) programs defined in section 116L.19, subdivision 5. 9.4Additional federal and state programs and resources can be included within the scope 9.5of the council's duties if recommended by the governor after consultation with the council. 9.6(b) Review federal, state, and local education, postsecondary, job skills training, 9.7and youth employment programs, and make recommendations to the governor and the 9.8legislature for establishing an integrated seamless system for providing education and 9.9work skills development services to learners and workers of all ages. 9.10(c) Advise the governor on the development and implementation of statewide and 9.11local performance standards and measures relating to applicable federal human resource 9.12programs and the coordination of performance standards and measures among programs. 9.13(d) Promote education and employment transitions programs and knowledge and 9.14skills of entrepreneurship among employers, workers, youth, and educators, and encourage 9.15employers to provide meaningful work-based learning opportunities; 9.16(e) Evaluate and identify exemplary education and employment transitions programs 9.17and provide technical assistance to local partnerships to replicate the programs throughout 9.18the state. 9.19(f) Advise the governor on methods to evaluate applicable federal human resource 9.20programs. 9.21(g) Sponsor appropriate studies to identify human investment needs in Minnesota 9.22and recommend to the governor goals and methods for meeting those needs. 9.23(h) Recommend to the governor goals and methods for the development and 9.24coordination of a human resource system in Minnesota. 9.25(i) Examine federal and state laws, rules, and regulations to assess whether they 9.26present barriers to achieving the development of a coordinated human resource system. 9.27(j) Recommend to the governor and to the federal government changes in state or 9.28federal laws, rules, or regulations concerning employment and training programs that 9.29present barriers to achieving the development of a coordinated human resource system. 9.30(k) Recommend to the governor and to the federal government waivers of laws and 9.31regulations to promote coordinated service delivery. 9.32(l) Sponsor appropriate studies and prepare and recommend to the governor a 9.33strategic plan which details methods for meeting Minnesota's human investment needs 9.34and for developing and coordinating a state human resource system. 10.1(m) Provide the commissioner of employment and economic development and 10.2the committees of the legislature with responsibility for economic development with 10.3recommendations provided to the governor under this subdivision. 10.4(n) In consultation with local workforce councils and the Department of Employment 10.5and Economic Development, develop an ongoing process to identify and address local 10.6gaps in workforce services. 10.7 Sec. 8. Minnesota Statutes 2008, section 116L.665, subdivision 6, is amended to read: 10.8 Subd. 6. Staffing. The Department of Employment and Economic Development 10.9must provide staff support, including but not limited to professional, technical, and clerical 10.10staff necessary to perform the duties assigned to the Minnesota Workforce Development 10.11Council. The support includes professional, technical, and clerical staff necessary to 10.12perform the duties assigned to the Workforce Development Council. All staff report to the 10.13commissioner. The council may ask for assistance from other units of state government as 10.14it requires in order to fulfill its duties and responsibilities. 10.15 Sec. 9. Minnesota Statutes 2008, section 116L.665, is amended by adding a subdivision 10.16to read: 10.17 Subd. 8. Funding. The commissioner shall develop recommendations on a funding 10.18formula for allocating Workforce Investment Act funds to the council with a minimum 10.19allocation of $350,000 per year. The commissioner shall report the funding formula 10.20recommendations to the legislature by January 15, 2011. 10.21 Sec. 10. [116L.98] WORKFORCE PROGRAM OUTCOMES. 10.22The commissioner shall develop and implement a set of standard approaches 10.23for assessing the outcomes of workforce programs under this chapter. The outcomes 10.24assessed must include, but are not limited to, periodic comparisons of workforce program 10.25participants and nonparticipants. 10.26The commissioner shall also monitor the activities and outcomes of programs and 10.27services funded by legislative appropriations and administered by the department on a 10.28pass-through basis and develop a consistent and equitable method of assessing recipients 10.29for the costs of its monitoring activities. 10.30EFFECTIVE DATE.This section is effective the day following final enactment. 10.31 Sec. 11. [116W.01] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY 10.32ACT. 11.1This chapter may be cited as the "Minnesota Science and Technology Authority Act." 11.2 Sec. 12. [116W.02] DEFINITIONS. 11.3 Subdivision 1. Applicability. For the purposes of this chapter, the terms in this 11.4section have the meanings given them. 11.5 Subd. 2. Authority. "Authority" means the Minnesota Science and Technology 11.6Authority. 11.7 Subd. 3. Eligible recipient. "Eligible recipient" means an entity primarily operating 11.8to create and retain jobs in the state's industrial base and maximize the economic growth 11.9of the state through: 11.10(1) high-technology research and development capabilities; 11.11(2) product and process innovation and commercialization; 11.12(3) high-technology manufacturing capabilities; 11.13(4) science and technology business environment; or 11.14(5) science and technology workforce preparation. 11.15 Subd. 4. Advisory commission. "Advisory commission" means the advisory 11.16commission under section 116W.051. 11.17 Sec. 13. [116W.03] MINNESOTA SCIENCE AND TECHNOLOGY 11.18AUTHORITY. 11.19 Subdivision 1. Membership. The Minnesota Science and Technology Authority 11.20consists of the commissioner of employment and economic development, the 11.21commissioner of management and budget, the commissioner of revenue, the commissioner 11.22of commerce, and the commissioner of agriculture. 11.23 Subd. 2. Chair; other officers. The commissioner of employment and economic 11.24development shall serve as the chair and chief executive officer of the authority. The 11.25authority shall rotate the position of vice chair annually among its members. The 11.26commissioner of employment and economic development shall convene the first meeting 11.27of the authority no later than July 1, 2010. In the absence of the chair or vice chair at 11.28meetings of the authority members may elect a chair for the meeting, and may elect other 11.29officers as necessary from its members. 11.30 Subd. 3. Delegation. In addition to any powers to delegate that members of the 11.31authority have as commissioners, they may delegate to the chair, vice chair, or executive 11.32director their responsibilities as members of the authority for reviewing and approving 11.33financing of eligible projects, projects that have been authorized by law, or programs 11.34specifically authorized by resolution of the authority. 12.1 Subd. 4. Actions. (a) A majority of the authority, excluding vacancies, constitutes a 12.2quorum to conduct its business, to exercise its powers, and for all other purposes. 12.3(b) The authority may conduct its business by any technological means available, 12.4including teleconference calls or interactive video, that allows for an interaction between 12.5members. If a meeting is conducted under this paragraph, a specific location must be 12.6available for the public to attend the meeting and at least one member must be present at 12.7that location. 12.8 Subd. 5. Executive director; staffing. The authority shall employ an executive 12.9director in the unclassified service. The initial executive director must be the individual in 12.10the position of director of the Office of Science and Technology as of January 1, 2010, 12.11under section 116J.657. The executive director is responsible for hiring staff necessary to 12.12assist the executive director to carry out the duties and responsibilities of the authority. 12.13The executive director shall perform duties that the authority may require in carrying out 12.14its responsibilities to manage and implement the funds and programs in this chapter, and 12.15comply with all state and federal program requirements, and state and federal securities 12.16and tax laws and regulations. The executive director shall assist the advisory board in 12.17fulfilling its duties under this chapter. 12.18 Subd. 6. Administrative services. The authority shall enter into agreements for 12.19administrative and professional services and technical support. 12.20 Subd. 7. Expiration. The authority is permanent and the provisions of section 12.2115.059, subdivision 5, do not apply. 12.22 Sec. 14. [116W.04] POWERS AND DUTIES. 12.23 Subdivision 1. Duties. The Science and Technology Authority shall: 12.24 (1) coordinate public and private efforts to procure federal funding for collaborative 12.25research and development projects of primary benefit to small-sized and medium-sized 12.26businesses; 12.27 (2) promote contractual relationships between Minnesota businesses that are 12.28recipients of federal grants and prime contractors, and Minnesota-based subcontractors; 12.29 (3) work with Minnesota nonprofit institutions including the University of 12.30Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting 12.31collaborative efforts to respond to federal funding opportunities; 12.32 (4) develop a framework for Minnesota companies to establish sole-source 12.33relationships with federal agencies; 12.34(5) provide grants or other forms of financial assistance to eligible recipients for 12.35purposes of this chapter; 13.1 (6) coordinate workshops, assistance with business proposals, licensing, intellectual 13.2property protection, commercialization, and government auditing with the University of 13.3Minnesota and Minnesota State Colleges and Universities; and 13.4(7) develop and implement a comprehensive science and technology economic 13.5development strategy for the state. 13.6 Subd. 2. Technology matchmaking. The authority must assist businesses in 13.7identifying qualified suppliers and vendors through a program to serve as a conduit for 13.8Minnesota-based companies to network with firms able to support their success. Firms 13.9outside Minnesota can participate in the technology matchmaking network if one of the 13.10participating companies is located in Minnesota. 13.11 Subd. 3. Commercialization assistance. The authority must provide 13.12commercialization assistance to Minnesota firms that have received a Phase I Small 13.13Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer 13.14(STTR) award and are submitting a Phase II proposal. Local service providers must assist 13.15the applicant with developing and reviewing the required commercialization plan prior to 13.16Phase II submission. The authority may provide SBIR Phase I proposal technical review. 13.17 Subd. 4. Power to sue; enter contracts. The authority may sue and be sued. The 13.18authority may make and enter into contracts, leases, and agreements necessary to perform 13.19its duties and exercise its powers. 13.20 Subd. 5. Gifts; grants. The authority may apply for, accept, and disburse gifts, 13.21grants, loans, or other property from the United States, the state, private sources, or 13.22any other source for any of its purposes. Money received by the authority under this 13.23subdivision must be deposited in the state treasury and is appropriated to the authority to 13.24carry out its duties. 13.25 Subd. 6. Contract for services. The authority may retain or contract for the 13.26services of accountants, financial advisors, and other consultants or agents needed to 13.27perform its duties and exercise its powers. 13.28 Subd. 7. Fees. The authority may set and collect fees for costs incurred by the 13.29authority, the Department of Employment and Economic Development, the Department of 13.30Management and Budget, the Department of Revenue, the Department of Commerce, the 13.31Department of Labor and Industry, and the Department of Agriculture, including costs 13.32for personnel, professional, and administrative services. 13.33 Subd. 8. Reports. (a) The authority shall report by February 1 each year to the 13.34chairs and ranking minority members of the legislative committees and divisions with 13.35jurisdiction over finance and economic development on its progress to design, coordinate, 13.36and administer a strategic science and technology program for the state to promote the 14.1welfare of the people of the state, maximize the economic growth of the state, and create 14.2and retain jobs in the state's industrial base through enhancement of Minnesota's: 14.3(1) high-technology research and development capabilities; 14.4(2) product and process innovation and commercialization; 14.5(3) high-technology manufacturing capabilities; 14.6(4) science and technology business environment; and 14.7(5) science and technology workforce preparation. 14.8(b) The report must include a complete operating and financial statement covering 14.9the authority's operations during the year, including amounts of income from all sources. 14.10Books and records of the authority are subject to audit by the legislative auditor in the 14.11manner prescribed for state agencies. 14.12 Subd. 9. Consultative and technical services. The authority may provide general 14.13consultative and technical services to assist eligible projects and enter into agreements or 14.14other transactions concerning the receipt or provision of those services. 14.15 Subd. 10. Financial information. Financial information, including credit reports, 14.16financial statements, and net worth calculations, received or prepared by the authority 14.17regarding financial assistance, is private data with regard to data on individuals as defined 14.18in section 13.02, subdivision 12, and nonpublic data with regard to data not on individuals 14.19as defined in section 13.02, subdivision 9. 14.20 Subd. 11. General. The authority shall have all powers necessary and appropriate to 14.21fulfill its responsibilities under this chapter. 14.22 Sec. 15. [116W.05] PROJECT FINANCIAL ASSISTANCE. 14.23 Subdivision 1. Determination of financial assistance. The authority shall assist 14.24eligible recipients in identifying grants or other sources of financial assistance available to 14.25finance projects and may assist eligible recipients in applying for and obtaining grants and 14.26other forms of assistance. 14.27 Subd. 2. Financial feasibility review. (a) The authority shall review the proposed 14.28financing for each project submitted to the authority to determine whether: (1) the 14.29proposed project and financing plan is an eligible use of the money; and (2) the proposal is 14.30in compliance with applicable state and federal tax and securities laws and regulations. 14.31Grants in excess of $50,000 must be approved by the authority. Grants of $50,000 or less 14.32may be authorized by the executive director. All grant approvals or disapprovals must 14.33be completed within 30 days of submission to the authority. Grants approved by the 14.34executive director must be reviewed by the authority each month. 15.1(b) Unless a project is specifically authorized by law, the authority may reject the 15.2proposed financing for a project meeting the requirements in paragraph (a) if there are not 15.3sufficient funds available or if a majority of members believe the financing of the project 15.4would not be in the best interests of the state or would be detrimental to the authority's 15.5funds or programs. A determination to reject a proposed project must not be made in 15.6an arbitrary and capricious manner and must be supported by substantive evidence and 15.7documented by a resolution of the authority stating its findings. 15.8 Sec. 16. [116W.051] ADVISORY COMMISSION. 15.9 Subdivision 1. Advisory commission membership. A Science and Technology 15.10Initiative Advisory Commission of 17 members is established and is comprised of: 15.11(1) two representatives of the University of Minnesota, selected by the president of 15.12the university, including a faculty member actively involved in science and technology 15.13research; 15.14(2) a representative of Minnesota State Colleges and Universities, selected by the 15.15chancellor; 15.16(3) the chief executive officer of the Mayo Clinic or a designee; 15.17(4) six chief executive officers or designees from science-oriented or 15.18technology-oriented companies; 15.19(5) four representatives from science-oriented and technology-oriented 15.20organizations; 15.21(6) one representative of organized labor; 15.22(7) a venture capital representative; and 15.23(8) a representative of angel investors. 15.24A member must have experience in science or technology in order to serve on 15.25the commission. 15.26Members of the commission listed in clauses (4) to (8) shall be appointed by the 15.27authority. 15.28 Subd. 2. Advisory commission duties. The advisory commission must assist the 15.29authority in developing a comprehensive science and technology economic development 15.30plan to be presented to the chairs and ranking minority members of the legislative 15.31committees and divisions with jurisdiction over economic development by January 15.3215, 2011. The plan must include recommendations in strategic areas for science and 15.33technology investments, recommendations on additional programs to support science and 15.34technology focused economic development activities in the state, selection of specific 15.35programs and grantees for support from program funds authorized by the advisory 16.1commission and ongoing assessment of the effectiveness of programmatic elements 16.2according to metrics to be developed by the authority in consultation with the advisory 16.3commission. The advisory commission may also advise and assist the authority in 16.4fulfilling its duties under section 116W.04. 16.5 Subd. 3. Membership terms; vacancies; compensation. The membership terms, 16.6removal of members, filling of vacancies and compensation of members are as provided 16.7under section 15.059. The compensation required under this section must be paid by 16.8the authority. 16.9 Subd. 4. Expiration. The advisory commission expires June 30, 2013. 16.10 Subd. 5. Convening of meetings; staffing. The executive director of the authority 16.11must convene the first meeting of the commission by August 1, 2010. The executive 16.12director must provide administrative support and staff to the commission. 16.13 Sec. 17. [116W.20] MONEY OF THE AUTHORITY. 16.14 Subdivision 1. Functions of commissioner of management and budget. Except 16.15as otherwise provided in this section, money of the authority must be paid to the 16.16commissioner of management and budget as agent of the authority and the commissioner 16.17shall not commingle the money with other money. The money in the accounts of the 16.18authority must be paid out only on warrants drawn by the commissioner of management 16.19and budget on requisition of the executive director of the authority or of another officer or 16.20employee as the authority authorizes. Deposits of the authority's money must, if required 16.21by the commissioner or the authority, be secured by obligations of the United States or of 16.22the state of a market value equal at all times to the amount of the deposit and all banks and 16.23trust companies are authorized to give security for the deposits. All money paid to the 16.24commissioner as agent of the authority is appropriated to the authority. 16.25 Subd. 2. System of accounts. The commissioner of management and budget shall 16.26prescribe a system of accounts. 16.27 Sec. 18. [116W.21] NONLIABILITY. 16.28 Subdivision 1. Nonliability of individuals. No member of the authority, staff of 16.29the authority, or other person executing other agreements or contracts of the authority is 16.30liable personally or is subject to any personal liability or accountability by reason of their 16.31issuance, execution, delivery, or performance. 16.32 Subd. 2. Nonliability of state. The state is not liable on loans or other agreements 16.33or contracts of the authority issued or entered into under this chapter and the loans or 16.34other agreements or contracts of the authority are not a debt of the state. The loans or 17.1other agreements or contracts of the authority must contain on their face a statement 17.2to that effect. 17.3 Sec. 19. [116W.23] STATE PLEDGE AGAINST IMPAIRMENT OF 17.4CONTRACTS. 17.5The state pledges and agrees with parties to any loans or other agreements or 17.6contracts of the authority that the state will not: (1) limit or alter the rights vested in the 17.7authority to fulfill the terms of any agreements made with the parties to any loans or other 17.8agreements or contracts of the authority; or (2) in any way impair the rights and remedies 17.9of the parties to any loans or other agreements or contracts of the authority. The authority 17.10may include this pledge and agreement of the state in any agreement with the parties in 17.11any loans or other agreements or contracts of the authority. 17.12 Sec. 20. [116W.24] RESERVES; FUNDS; ACCOUNTS. 17.13The authority may establish reserves, funds, or accounts necessary to carry out the 17.14purposes of the authority or to comply with any agreement made by or any resolution 17.15passed by the authority. 17.16 Sec. 21. Minnesota Statutes 2008, section 136F.06, is amended by adding a subdivision 17.17to read: 17.18 Subd. 4. Workforce focus. The board must identify colleges offering flexible 17.19academic programs that accommodate the needs of laid-off workers and assist its other 17.20institutions in determining whether to offer similar programs. Colleges must increase the 17.21number of certificate programs available to meet the needs of unemployed Minnesotans. 17.22EFFECTIVE DATE.This section is effective the day following final enactment. 17.23 Sec. 22. Minnesota Statutes 2009 Supplement, section 268.035, subdivision 23a, 17.24is amended to read: 17.25 Subd. 23a. Suitable employment. (a) Suitable employment means employment in 17.26the applicant's labor market area that is reasonably related to the applicant's qualifications. 17.27In determining whether any employment is suitable for an applicant, the degree of risk 17.28involved to the health and safety, physical fitness, prior training, experience, length 17.29of unemployment, prospects for securing employment in the applicant's customary 17.30occupation, and the distance of the employment from the applicant's residence is 17.31considered. 18.1 (b) In determining what is suitable employment, primary consideration is given to the 18.2temporary or permanent nature of the applicant's separation from employment and whether 18.3the applicant has favorable prospects of finding employment in the applicant's usual or 18.4customary occupation at the applicant's past wage level within a reasonable period of time. 18.5 If prospects are unfavorable, employment at lower skill or wage levels is suitable 18.6if the applicant is reasonably suited for the employment considering the applicant's 18.7education, training, work experience, and current physical and mental ability. 18.8 The total compensation must be considered, including the wage rate, hours of 18.9employment, method of payment, overtime practices, bonuses, incentive payments, and 18.10fringe benefits. 18.11 (c) When potential employment is at a rate of pay lower than the applicant's former 18.12rate, consideration must be given to the length of the applicant's unemployment and the 18.13proportion of difference in the rates. Employment that may not be suitable because of 18.14lower wages during the early weeks of the applicant's unemployment may become suitable 18.15as the duration of unemployment lengthens. 18.16 (d) For an applicant seasonally unemployed, suitable employment includes 18.17temporary work in a lower skilled occupation that pays average gross weekly wages equal 18.18to or more than 150 percent of the applicant's weekly unemployment benefit amount. 18.19 (e) If a majority of the applicant's weeks of employment in the base period includes 18.20part-time employment, part-time employment in a position with comparable skills and 18.21comparable hours that pays comparable wages is considered suitable employment. 18.22 Full-time employment is not considered suitable employment for an applicant if a 18.23majority of the applicant's weeks of employment in the base period includes part-time 18.24employment. 18.25 (f) To determine suitability of employment in terms of shifts, the arrangement of 18.26hours in addition to the total number of hours is to be considered. Employment on a 18.27second, third, rotating, or split shift is suitable employment if it is customary in the 18.28occupation in the labor market area. 18.29 (g) Employment is not considered suitable if: 18.30 (1) the position offered is vacant because of a labor dispute; 18.31 (2) the wages, hours, or other conditions of employment are substantially less 18.32favorable than those prevailing for similar employment in the labor market area; or 18.33 (3) as a condition of becoming employed, the applicant would be required to join a 18.34company union or to resign from or refrain from joining any bona fide labor organization; 18.35or 19.1(4) the employment is with a staffing service and less than 75 percent of the 19.2applicant's wage credits are from a job assignment with the client of a staffing service. 19.3 Sec. 23. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision 19.4to read: 19.5 Subd. 23b. Staffing service. A "staffing service" is an employer whose business 19.6involves employing individuals directly for the purpose of furnishing temporary 19.7assignment workers to clients of the staffing service. 19.8 Sec. 24. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision 19.9to read: 19.10 Subd. 23c. Suitable job assignment. A job assignment with a staffing service is 19.11considered suitable only if it independently meets the definition of suitable employment as 19.12defined in subdivision 23b. 19.13 Sec. 25. Minnesota Statutes 2008, section 268.085, subdivision 16, is amended to read: 19.14 Subd. 16. Actively seeking suitable employment defined. (a) "Actively seeking 19.15suitable employment" means those reasonable, diligent efforts an individual in similar 19.16circumstances would make if genuinely interested in obtaining suitable employment under 19.17the existing conditions in the labor market area. Limiting the search to positions that are 19.18not available or are above the applicant's training, experience, and qualifications is not 19.19"actively seeking suitable employment." 19.20 (b) To be considered "actively seeking suitable employment" an applicant must, 19.21when reasonable, contact those employers from whom the applicant was laid off because 19.22of lack of work and request suitable employment. 19.23 (c) If reasonable prospects of suitable employment in the applicant's usual or 19.24customary occupation do not exist, the applicant must actively seek other suitable 19.25employment to be considered "actively seeking suitable employment." This applies to an 19.26applicant who is seasonally unemployed. 19.27 (d) Actively seeking a suitable job assignment or other employment with a staffing 19.28service is considered actively seeking suitable employment. 19.29(e) An applicant who is seeking employment only through a union is considered 19.30actively seeking suitable employment if the applicant is in an occupation where hiring 19.31in that locality is done through the union. If the applicant is a union member who is 19.32restricted to obtaining employment among signatory contractors in the construction 19.33industry, seeking employment only with those signatory contractors is considered actively 20.1seeking employment. The applicant must be a union member in good standing, registered 20.2with the union for employment, and in compliance with other union rules to be considered 20.3"actively seeking suitable employment." 20.4 Sec. 26. Minnesota Statutes 2009 Supplement, section 268.095, subdivision 2, is 20.5amended to read: 20.6 Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end 20.7the employment was, at the time the employment ended, the employee's. 20.8 (b) An employee who has been notified that the employee will be discharged in the 20.9future, who chooses to end the employment while employment in any capacity is still 20.10available, is considered to have quit the employment. 20.11 (c) An employee who seeks to withdraw a previously submitted notice of quitting is 20.12considered to have quit the employment if the employer does not agree that the notice 20.13may be withdrawn. 20.14 (d) An applicant who, within five calendar days after completion of a suitable 20.15temporary job assignment from a staffing service employer, (1) fails without good cause to 20.16affirmatively request an additional suitable job assignment, (2) refuses without good cause 20.17an additional suitable job assignment offered, or (3) accepts employment with the client 20.18of the staffing service, is considered to have quit employment with the staffing service. 20.19Accepting employment with the client of the staffing service meets the requirements of the 20.20exception to ineligibility under subdivision 1, clause (2). 20.21 This paragraph applies only if, at the time of beginning of employment with the 20.22staffing service employer, the applicant signed and was provided a copy of a separate 20.23document written in clear and concise language that informed the applicant of this 20.24paragraph and that unemployment benefits may be affected. 20.25 For purposes of this paragraph, "good cause" is a reason that is significant and 20.26would compel an average, reasonable worker, who would otherwise want an additional 20.27temporary suitable job assignment with the staffing service employer, (1) to fail to contact 20.28the staffing service employer, or (2) to refuse an offered assignment. 20.29 For purposes of this paragraph, a "staffing service employer" is an employer whose 20.30business involves employing individuals directly for the purpose of furnishing temporary 20.31job assignment workers to clients of the staffing service. 20.32 Sec. 27. Minnesota Statutes 2008, section 268.095, subdivision 5, is amended to read: 20.33 Subd. 5. Discharge defined. (a) A discharge from employment occurs when any 20.34words or actions by an employer would lead a reasonable employee to believe that the 21.1employer will no longer allow the employee to work for the employer in any capacity. A 21.2layoff because of lack of work is considered a discharge. A suspension from employment 21.3without pay of more than 30 calendar days is considered a discharge. 21.4 (b) An employee who gives notice of intention to quit the employment and is not 21.5allowed by the employer to work the entire notice period is considered discharged from 21.6the employment as of the date the employer will no longer allow the employee to work. If 21.7the discharge occurs within 30 calendar days before the intended date of quitting, then, 21.8as of the intended date of quitting, the separation from employment is considered a quit 21.9from employment subject to subdivision 1. 21.10(c) The end of a job assignment with the client of a staffing service is considered a 21.11discharge from employment with the staffing service unless section 268.095, subdivision 21.122, paragraph (d), applies. 21.13 Sec. 28. Minnesota Statutes 2009 Supplement, section 268.095, subdivision 6, is 21.14amended to read: 21.15 Subd. 6. Employment misconduct defined. (a) Employment misconduct means 21.16any intentional, negligent, or indifferent conduct, on the job or off the job that displays 21.17clearly: 21.18(1) a serious is an egregious violation of the standards of behavior the employer has 21.19the right to reasonably expect of the employee; or and displays clearly 21.20(2) a substantial lack of concern for the employment. 21.21(b) Regardless of paragraph (a), the following is not employment misconduct: 21.22(1) conduct that was a consequence of the applicant's mental illness or impairment; 21.23 (2) conduct that was a consequence of the applicant's inefficiency or inadvertence; 21.24(3) simple unsatisfactory conduct; 21.25(4) conduct an average reasonable employee would have engaged in under the 21.26circumstances; 21.27(5) poor performance because of conduct that was a consequence of the applicant's 21.28 inability or incapacity; 21.29(6) good faith errors in judgment if judgment was required; 21.30(7) absence because of illness or injury of the applicant, with proper notice to the 21.31employer; 21.32(8) absence, with proper notice to the employer, in order to provide necessary care 21.33because of the illness, injury, or disability of an immediate family member of the applicant; 21.34 (9) conduct that was a direct result consequence of the applicant's chemical 21.35dependency, unless the applicant was previously diagnosed chemically dependent or had 22.1treatment for chemical dependency, and since that diagnosis or treatment has failed to 22.2make consistent efforts to control the chemical dependency; or 22.3 (10) conduct that was a result consequence of the applicant, or an immediate family 22.4member of the applicant, being a victim of domestic abuse as defined under section 22.5518B.01 . Domestic abuse must be shown as provided for in subdivision 1, clause (9). 22.6 (c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20, 22.7169A.31 , or 169A.50 to 169A.53 that interferes with or adversely affects the employment 22.8is employment misconduct. 22.9(d) If the conduct for which the applicant was discharged involved only a single 22.10incident, that is an important fact that must be considered in deciding whether the conduct 22.11rises to the level of employment misconduct under paragraph (a). 22.12 (e) The definition of employment misconduct provided by this subdivision 22.13is exclusive and no other definition applies. The term "egregious," as used in this 22.14subdivision, sets a high threshold and application of the term must take into consideration 22.15section 268.031, subdivision 2. 22.16EFFECTIVE DATE.This section is effective for determinations under section 22.17268.101, subdivision 2, and appeal decisions under section 268.105, subdivision 1, issued 22.18on and after the Sunday following final enactment. 22.19 Sec. 29. Minnesota Statutes 2008, section 268.101, is amended by adding a subdivision 22.20to read: 22.21 Subd. 2a. Telephone number. Every determination issued under subdivision 2 22.22must include a prominently displayed telephone number that an applicant or involved 22.23employer can call to speak with an unemployment insurance specialist and obtain further 22.24explanation about the determination and have any questions answered. The specialist 22.25must, when appropriate, issue an amended determination as provided for in subdivision 4. 22.26The listed telephone number must be unique to a specialized call group trained to handle 22.27calls involving determinations. 22.28EFFECTIVE DATE.This section is effective October 3, 2010, and expires 22.29September 30, 2012. 22.30 Sec. 30. Minnesota Statutes 2009 Supplement, section 268.105, subdivision 1, is 22.31amended to read: 22.32 Subdivision 1. Evidentiary hearing by unemployment law judge. (a) Upon 22.33a timely appeal having been filed, the department must send, by mail or electronic 23.1transmission, a notice of appeal to all involved parties that an appeal has been filed, and 23.2that a de novo due process evidentiary hearing will be scheduled. The notice must set out 23.3the parties' rights and responsibilities regarding the hearing. The notice must explain that 23.4the facts will be determined by the unemployment law judge based upon a preponderance 23.5of the evidence. The notice must explain in clear and simple language the meaning of the 23.6term "preponderance of the evidence." The department must set a time and place for a 23.7de novo due process evidentiary hearing and send notice to any involved applicant and 23.8any involved employer, by mail or electronic transmission, not less than ten calendar 23.9days before the date of the hearing. 23.10 (b) The evidentiary hearing is conducted by an unemployment law judge as an 23.11evidence gathering inquiry. At the beginning of the hearing the unemployment law judge 23.12must fully explain how the hearing will be conducted, that the applicant has the right to 23.13request that the hearing be rescheduled so that documents or witnesses can be subpoenaed, 23.14that the facts will be determined based on a preponderance of the evidence, and, in 23.15clear and simple language, the meaning of the term "preponderance of the evidence." 23.16The unemployment law judge must ensure that all relevant facts are clearly and fully 23.17developed. The department may adopt rules on evidentiary hearings. The rules need 23.18not conform to common law or statutory rules of evidence and other technical rules of 23.19procedure. The department has discretion regarding the method by which the evidentiary 23.20hearing is conducted. A report of any employee of the department, except a determination, 23.21made in the regular course of the employee's duties, is competent evidence of the facts 23.22contained in it. An affidavit or written statement based on personal knowledge and signed 23.23under penalty of perjury is competent evidence of the facts contained in it; however, the 23.24veracity of statements contained within the document or the credibility of the witness 23.25making the statement may be disputed with other documents or testimony and production 23.26of such documents or testimony may be compelled by subpoena. 23.27 (c) After the conclusion of the hearing, upon the evidence obtained, the 23.28unemployment law judge must make findings of fact and decision and send those, by mail 23.29or electronic transmission, to all involved parties. When the credibility of an involved 23.30party or witness testifying in an evidentiary hearing has a significant effect on the outcome 23.31of a decision, the unemployment law judge must set out the reason for crediting or 23.32discrediting that testimony. The unemployment law judge's decision is final unless a 23.33request for reconsideration is filed under subdivision 2. 23.34 (d) Regardless of paragraph (c), if the appealing party fails to participate in the 23.35evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal 23.36by summary order. By failing to participate, the appealing party is considered to have 24.1failed to exhaust available administrative remedies unless the appealing party files a 24.2request for reconsideration under subdivision 2 and establishes good cause for failing to 24.3participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission 24.4of a written statement does not constitute participation. The applicant must participate 24.5personally and appearance solely by a representative does not constitute participation. 24.6 (e) Only employees of the department who are attorneys licensed to practice law 24.7in Minnesota may serve as the chief unemployment law judge, senior unemployment 24.8law judges who are supervisors, or unemployment law judges. The commissioner 24.9must designate a chief unemployment law judge. The chief unemployment law judge 24.10may transfer to another unemployment law judge any proceedings pending before an 24.11unemployment law judge. 24.12(f) A full-time unemployment law judge must be paid a salary of a minimum of 55 24.13percent and a maximum of 75 percent of the salary set under section 15A.083, subdivision 24.147, for a workers' compensation judge. The salary paid within that range to any single 24.15unemployment law judge is based on experience and performance. 24.16EFFECTIVE DATE.This section is effective July 1, 2010, and applies to all new 24.17unemployment law judges hired on or after that date. 24.18 Sec. 31. Minnesota Statutes 2008, section 268.184, subdivision 1, is amended to read: 24.19 Subdivision 1. Administrative penalties. (a) The commissioner shall penalize 24.20an employer if that employer or any employee, officer, or agent of that employer, is 24.21in collusion with any applicant for the purpose of assisting the applicant to receive 24.22unemployment benefits fraudulently. The penalty is $500 or the amount of unemployment 24.23benefits determined to be overpaid, whichever is greater. 24.24 (b) The commissioner shall penalize an employer if that employer or any employee, 24.25officer, or agent of that employer (1) made a false statement or representation knowing 24.26it to be false, (2) made a false statement or representation without a good faith belief as 24.27to correctness of the statement or representation, or (3) knowingly failed to disclose a 24.28material fact;, or (4) made an offer of employment to an applicant when, in fact, the 24.29employer had no employment available, but only if the employer's action: 24.30 (i) was taken to prevent or reduce the payment of unemployment benefits to any 24.31applicant; 24.32 (ii) was taken to reduce or avoid any payment required from an employer under 24.33this chapter or section 116L.20; or 24.34 (iii) caused an overpayment of unemployment benefits to an applicant. 25.1 The penalty is $500, or 50 percent of the overpaid or reduced unemployment benefits 25.2or payment required, whichever is greater. 25.3 (c) The commissioner shall penalize an employer if that employer failed or refused 25.4to honor a subpoena issued under section 268.105, subdivision 4, or section 268.188. The 25.5penalty is $500 and any costs of enforcing the subpoena, including attorney fees. 25.6 (d) Penalties under this subdivision are in addition to any other penalties and subject 25.7to the same collection procedures that apply to past due taxes. Penalties must be paid 25.8within 30 calendar days of assessment and credited to the contingent account. 25.9 (e) The assessment of the penalty is final unless the employer files an appeal within 25.1020 calendar days after the sending of notice of the penalty to the employer by mail or 25.11electronic transmission. Proceedings on the appeal are conducted in accordance with 25.12section 268.105. 25.13 Sec. 32. [326B.091] DEFINITIONS. 25.14 Subdivision 1. Applicability. For purposes of sections 326B.091 to 326B.098, the 25.15terms defined in this section have the meanings given them. 25.16 Subd. 2. Applicant. "Applicant" means a person who has submitted to the 25.17department an application for a license. 25.18 Subd. 3. License. "License" means any registration, certification, or other form 25.19of approval authorized by chapters 326B and 327B to be issued by the commissioner 25.20or department as a condition of doing business or conducting a trade, profession, 25.21or occupation in Minnesota. License includes specifically but not exclusively an 25.22authorization issued by the commissioner or department: to perform electrical work, 25.23plumbing or water conditioning work, high pressure piping work, or residential building 25.24work of a residential contractor, residential remodeler, or residential roofer; to install 25.25manufactured housing; to serve as a building official; or to operate a boiler or boat. 25.26 Subd. 4. Licensee. "Licensee" means the person named on the license as the person 25.27authorized to do business or conduct the trade, profession, or occupation in Minnesota. 25.28 Subd. 5. Notification date. "Notification date" means the date of the written 25.29notification from the department to an applicant that the applicant is qualified to take the 25.30examination required for licensure. 25.31 Subd. 6. Renewal deadline. "Renewal deadline," when used with respect to a 25.32license, means 30 days before the date that the license expires. 25.33 Sec. 33. [326B.092] FEES. 26.1 Subdivision 1. Licenses requiring examination administered by commissioner. 26.2(a) If the applicant for a license must pass an examination administered by the 26.3commissioner in order to obtain the license, then the application for the initial license 26.4must be accompanied by an application and examination fee of $50, which is separate 26.5from the license fee. The license fee is due after the applicant passes the examination 26.6and before the license is issued. 26.7(b) If the applicant for a Minnesota license holds a license in another state and 26.8is seeking Minnesota licensure without examination based on reciprocity, then the 26.9application for the Minnesota license must be accompanied by the application and 26.10examination fee of $50, which is separate from the license fee. If the commissioner 26.11approves the application, then the license fee is due before the license is issued. 26.12 Subd. 2. Licenses not requiring examination administered by commissioner. 26.13If the applicant for a license is not required to pass an examination in order to obtain the 26.14license, or is required to pass an examination that is not administered by the commissioner, 26.15then the license fee must accompany the application for the license. If the application is 26.16for a license issued under sections 326B.802 to 326B.885 and is not an application for 26.17license renewal, then the contractor recovery fund fee required under section 326B.89, 26.18subdivision 3, is due after the department has determined that the applicant meets the 26.19qualifications for licensing and before the license is issued. 26.20 Subd. 3. Late fee. The department must receive a complete application for license 26.21renewal by the renewal deadline but not more than 90 days before the renewal deadline. If 26.22the department receives a renewal application after the expiration of the license, then the 26.23renewal application must be accompanied by a late fee equal to one-half of the license 26.24renewal fee; except that, for the purpose of calculating the late fee only, the license 26.25renewal fee shall not include any contractor recovery fund fee required by section 26.26326B.89, subdivision 3. 26.27 Subd. 4. Lapsed licensed fee. If the department receives a renewal application 26.28within two years after expiration of the license, the renewal application must be 26.29accompanied by all license renewal fees to cover the period that the license was expired, 26.30plus the late fee described in subdivision 3 and the license renewal fee for the current 26.31renewal period. 26.32 Subd. 5. Insufficient fees. If the applicant does not include all required fees with 26.33the application, then the application will be incomplete and the department will notify the 26.34applicant of the amount of the deficiency. 26.35 Subd. 6. Fees nonrefundable. Application and examination fees, license fees, 26.36license renewal fees, and late fees are nonrefundable except for: 27.1(1) license renewal fees received more than two years after expiration of the license, 27.2as described in section 326B.094, subdivision 2; 27.3(2) any overpayment of fees; and 27.4(3) if the license is not renewed, the contractor recovery fund fee and any additional 27.5assessment paid under subdivision 7, paragraph (e). 27.6 Subd. 7. License fees and license renewal fees. (a) The license fee for each license 27.7except a renewed license shall be the base license fee plus any applicable board fee, as 27.8set forth in this subdivision. The license renewal fee for each renewed license is the 27.9base license fee plus any applicable board fee, continuing education fee, and contractor 27.10recovery fund fee and additional assessment, as set forth in this subdivision. 27.11(b) For purposes of this section, "license duration" means the number of years for 27.12which the license is issued except that: 27.13(1) if the initial license is not issued for a whole number of years, the license duration 27.14shall be rounded up to the next whole number; and 27.15(2) if the department receives an application for license renewal after the renewal 27.16deadline, license duration means the number of years for which the renewed license would 27.17have been issued if the renewal application had been submitted on time and all other 27.18requirements for renewal had been met. 27.19(c) The base license fee shall depend on whether the license is classified as an entry 27.20level, master, journeyman, or business license, and on the license duration. The base 27.21license fee shall be: 27.22 License ClassificationLicense Duration 27.23 1 Year2 Years3 Years 27.24 Entry level$10$20$30 27.25 Journeyman$20$40$60 27.26 Master$40$80$120 27.27 Business$90$180$270

27.28(d) If there is a continuing education requirement for renewal of the license, then 27.29a continuing education fee must be included in the renewal license fee. The continuing 27.30education fee for all license classifications shall be: $10 if the renewal license duration is 27.31one year; $20 if the renewal license duration is two years; and $30 if the renewal license 27.32duration is three years. 27.33(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 27.34326B.93, then a board fee must be included in the license fee and the renewal license fee. 27.35The board fee for all license classifications shall be: $4 if the license duration is one year; 27.36$8 if the license duration is two years; and $12 if the license duration is three years. 28.1(f) If the application is for the renewal of a license issued under sections 326B.802 28.2to 326B.885, then the contractor recovery fund fee required under section 326B.89, 28.3subdivision 3, and any additional assessment required under section 326B.89, subdivision 28.416, must be included in the license renewal fee. 28.5 Sec. 34. [326B.093] LICENSES REQUIRING EXAMINATION 28.6ADMINISTERED BY COMMISSIONER. 28.7 Subdivision 1. Qualifications for examination. If the applicant for a license must 28.8pass an examination administered by the commissioner in order to obtain the license, then 28.9the applicant's complete application must demonstrate that the applicant is qualified to 28.10take the examination. The applicant is qualified to take the examination if the applicant 28.11meets all requirements for the license except for passing the examination. 28.12 Subd. 2. Not qualified for examination. If the applicant is not qualified to take 28.13the examination, then the commissioner must deny the application. The applicant may 28.14subsequently submit another application, accompanied by the required fee. 28.15 Subd. 3. Taking the examination. If the applicant is qualified to take the 28.16examination, then the department must notify the applicant, and the applicant may 28.17schedule a time to take the examination within one year after the notification date. If the 28.18applicant does not take the examination at the scheduled time, the applicant may, one 28.19time only, reschedule a time to take the examination on a date within one year after the 28.20notification date. If the applicant fails to take the examination within one year after the 28.21notification date, the commissioner must deny the application and the applicant forfeits the 28.22application/examination fee. The applicant may subsequently submit another application, 28.23accompanied by the required application/examination fee. 28.24 Subd. 4. Examination results. If the applicant receives a passing score on the 28.25examination and meets all other requirements for licensure, the commissioner must 28.26approve the application and notify the applicant of the approval within 60 days of the date 28.27of the passing score. The applicant must, within 90 days after the notification of approval, 28.28pay the license fee. Upon receipt of the license fee, the commissioner must issue the 28.29license. If the applicant does not pay the license fee within 90 days after the notification 28.30of approval, the commissioner will rescind the approval and must deny the application. 28.31If the applicant does not receive a passing score on the examination, the commissioner 28.32must deny the application. If the application is denied because of the applicant's failure 28.33to receive a passing score on the examination, then the applicant cannot submit a new 28.34application for the license until at least 30 days after the notification of denial. 29.1 Sec. 35. [326B.094] RENEWAL OF LICENSES. 29.2 Subdivision 1. Expiration of licenses. Unless and until the department or 29.3commissioner issues a renewal of a license, the license expires on the expiration date 29.4printed on the license. While the license is expired, the licensee cannot perform the 29.5activities authorized by the license. 29.6 Subd. 2. Availability of renewal. A licensee may apply to renew a license no later 29.7than two years after the expiration of the license. If the department receives a complete 29.8renewal application no later than two years after the expiration of the license, then the 29.9department must approve or deny the renewal application within 60 days of receiving the 29.10complete renewal application. If the department receives a renewal application more than 29.11two years after the expiration of the license, the department must return the renewal 29.12license fee to the applicant without approving or denying the application. If the licensee 29.13wishes to obtain a valid license more than two years after expiration of the license, the 29.14licensee must apply for a new license. 29.15 Subd. 3. Deadline for avoiding license expiration. The department must receive 29.16a complete application to renew a license no later than the renewal deadline. If the 29.17department does not receive a complete application by the renewal deadline, the license 29.18may expire before the department has either approved or denied the renewal application. 29.19 Sec. 36. [326B.095] INCOMPLETE LICENSE APPLICATIONS. 29.20This section applies to both applications for initial licenses and license renewal 29.21applications. If the department determines that an application is incomplete, the 29.22department must notify the applicant of the deficiencies that must be corrected in 29.23order to complete the application. If the applicant wishes to complete the application, 29.24the department must receive the completed application within 90 days after the date 29.25the department mailed or delivered the incomplete application to the applicant. If the 29.26department does not receive the completed application by this deadline, the commissioner 29.27must deny the application and the applicant will forfeit all fees except as provided 29.28in section 326B.092, subdivision 6. If the application is for license renewal and the 29.29department receives the corrected application after the license has expired, then the 29.30corrected application must be accompanied by the late fee. 29.31 Sec. 37. [326B.096] REINSTATEMENT OF LICENSES. 29.32 Subdivision 1. Reinstatement after revocation. (a) If a license is revoked under 29.33this chapter and if an applicant for a license needs to pass an examination administered by 30.1the commissioner before becoming licensed, then, in order to have the license reinstated, 30.2the person who holds the revoked license must: 30.3(1) retake the examination and achieve a passing score; and 30.4(2) meet all other requirements for an initial license, including payment of the 30.5application and examination fee and the license fee. The person holding the revoked 30.6license is not eligible for Minnesota licensure without examination based on reciprocity. 30.7(b) If a license is revoked under a chapter other than this chapter, then, in order to 30.8have the license reinstated, the person who holds the revoked license must: 30.9(1) apply for reinstatement to the commissioner no later than two years after the 30.10effective date of the revocation; 30.11(2) pay a $100 reinstatement application fee and any applicable renewal license 30.12fee; and 30.13(3) meet all applicable requirements for licensure, except that, unless required by the 30.14order revoking the license, the applicant does not need to retake any examination and does 30.15not need to repay a license fee that was paid before the revocation. 30.16 Subd. 2. Reinstatement after suspension. If a license is suspended, then, in order 30.17to have the license reinstated, the person who holds the suspended license must: 30.18(1) apply for reinstatement to the commissioner no later than two years after the 30.19completion of the suspension period; 30.20(2) pay a $100 reinstatement application fee and any applicable renewal license 30.21fee; and 30.22(3) meet all applicable requirements for licensure, except that, unless required by the 30.23order suspending the license, the applicant does not need to retake any examination and 30.24does not need to repay a license fee that was paid before the suspension. 30.25 Subd. 3. Reinstatement after voluntary termination. A licensee who is not an 30.26individual may voluntarily terminate a license issued to the person under this chapter. If a 30.27licensee has voluntarily terminated a license under this subdivision, then, in order to have 30.28the license reinstated, the person who holds the terminated license must: 30.29(1) apply for reinstatement to the commissioner no later than the date that the license 30.30would have expired if it had not been terminated; 30.31(2) pay a $100 reinstatement application fee and any applicable renewal license 30.32fee; and 30.33(3) meet all applicable requirements for licensure, except that the applicant does not 30.34need to repay a license fee that was paid before the termination. 30.35 Sec. 38. [326B.097] PROHIBITION OF TRANSFER. 31.1A licensee shall not transfer or sell any license. 31.2 Sec. 39. [326B.098] CONTINUING EDUCATION. 31.3 Subdivision 1. Applicability. This section applies to seminars offered by 31.4the department for the purpose of allowing licensees to meet continuing education 31.5requirements for license renewal. 31.6 Subd. 2. Rescheduling. An individual who is registered with the department to 31.7attend a seminar may reschedule one time only, to attend the same seminar on a date 31.8within one year after the date of the seminar the individual was registered to attend. 31.9 Subd. 3. Fees nonrefundable. All seminar fees paid to the department are 31.10nonrefundable except for any overpayment of fees. 31.11 Sec. 40. Minnesota Statutes 2008, section 326B.133, subdivision 1, is amended to read: 31.12 Subdivision 1. Designation. Each municipality shall designate a building official to 31.13administer the code. A municipality may designate no more than one building official 31.14responsible for code administration defined by each certification category established in 31.15rule created by statute or rule. Two or more municipalities may combine in the designation 31.16of a building official for the purpose of administering the provisions of the code within 31.17their communities. In those municipalities for which no building officials have been 31.18designated, the state building official may use whichever state employees are necessary to 31.19perform the duties of the building official until the municipality makes a temporary or 31.20permanent designation. All costs incurred by virtue of these services rendered by state 31.21employees must be borne by the involved municipality and receipts arising from these 31.22services must be paid to the commissioner. 31.23 Sec. 41. Minnesota Statutes 2008, section 326B.133, is amended by adding a 31.24subdivision to read: 31.25 Subd. 2a. Application; renewal; fees; expiration. (a) An applicant for certification 31.26shall submit a completed application on a form approved by the commissioner to the 31.27department. The commissioner shall review applications for compliance with the 31.28requirements established by rule. 31.29(b) Application for initial certification or renewal certification as a building official, 31.30building official-limited, or accessibility specialist shall be according to this section and 31.31sections 326B.092 to 326B.095. 31.32(c) Fees shall be paid to the department according to section 326B.092. 32.1(d) Unless revoked or suspended under this chapter, all certifications issued or 32.2renewed under this section expire two years from the date of original issuance and every 32.3two years thereafter. 32.4 Sec. 42. Minnesota Statutes 2008, section 326B.133, subdivision 3, is amended to read: 32.5 Subd. 3. Certification criteria. The commissioner shall by rule establish 32.6certification criteria as proof of qualification pursuant to subdivision 2. The commissioner 32.7may: 32.8 (1) develop and administer written and practical examinations to determine if a 32.9person is qualified pursuant to subdivision 2 to be a building official; 32.10 (2) accept documentation of successful completion of testing programs developed 32.11and administered by nationally recognized testing agencies, as proof of qualification 32.12pursuant to subdivision 2; or 32.13 (3) determine qualifications by satisfactory completion of clause (2) and a mandatory 32.14training program developed or approved by the commissioner. 32.15 Upon a determination of qualification under clause (1), (2), or (3), the commissioner 32.16shall issue a certificate to the building official stating that the official is certified. Each 32.17person applying for examination and certification pursuant to this section shall pay a 32.18nonrefundable fee of $70. The commissioner or a designee may establish categories of 32.19certification that will recognize the varying complexities of code enforcement in the 32.20municipalities within the state. The commissioner shall provide educational programs 32.21designed to train and assist building officials in carrying out their responsibilities. 32.22 Sec. 43. Minnesota Statutes 2008, section 326B.133, is amended by adding a 32.23subdivision to read: 32.24 Subd. 3a. Certification categories. (a) If a municipality has adopted or adopts 32.25the State Building Code, the responsibilities for code administration and enforcement 32.26are under the authority of its designated building official or the certified building 32.27official-limited. 32.28(b) Certified building official. This certification is identified as "certified building 32.29official" on the certificate card. This certification is granted to an individual who has met 32.30the certified building official requirements established by rule and passed the written 32.31examination prepared by the state. A person with this certification may serve as the 32.32designated building official for any municipality. For the purposes of calculating fees 32.33under section 326B.092, certification as a building official is a master license. 33.1(c) Certified building official-limited. This certification is identified as "certified 33.2building official-limited" on the certification card. This certification is granted to an 33.3individual who has met the certified building official-limited requirements established by 33.4rule and passed the written examination prepared by the state. An individual with this 33.5certification may perform code administration for one- and two-family dwellings, their 33.6accessory structures, and "exempt classes of buildings" as provided in Minnesota Rules, 33.7part 1800.5000, of the Board of Architecture, Engineering, Land Surveying, Landscape 33.8Architecture, Geoscience, and Interior Design, and "facilities for persons with physical 33.9disabilities" that are governed by the State Building Code. Subject to the limitations of the 33.10building official-limited certification, an individual with this certification may serve as 33.11the designated building official for any municipality. Code administration for all other 33.12buildings must be performed by a certified building official as defined in paragraph (a). A 33.13certified building official-limited may conduct inspections for other structures regulated 33.14by the State Building Code under the direction of a designated certified building official or 33.15the state building official. 33.16Subject to all other certification requirements, as of January 1, 2012, valid Class I 33.17certifications shall be included in the certified building official-limited category upon the 33.18next immediate renewal. For the purposes of calculating fees under section 326B.092, 33.19certification as a building official-limited is a journeyman license. 33.20(d) Accessibility specialist. This certification is identified as accessibility specialist 33.21on the certification card. This certification is granted to an individual who has met 33.22the "accessibility specialist" requirements established by rule and passed the written 33.23examination prepared by the state. An individual with this classification is limited to the 33.24administration of those provisions of the State Building Code that provide access for 33.25persons with disabilities. For the purposes of calculating fees under section 326B.092, 33.26certification as an accessibility specialist is a journeyman license. 33.27 Sec. 44. Minnesota Statutes 2008, section 326B.133, subdivision 8, is amended to read: 33.28 Subd. 8. Continuing education requirements; extension of time. (a) This 33.29subdivision establishes the number of continuing education units required within each 33.30two-year certification period. 33.31A certified building official shall accumulate 16 continuing education units in any 33.32education program that is approved under Minnesota Rules, part 1301.1000. 33.33A certified building official-limited shall, in each year of the initial two-year 33.34certification period, accumulate eight continuing education units in any education program 33.35that is approved under Minnesota Rules, part 1301.1000. Continuing education units 34.1shall be reported annually during the initial two-year certification period by the method 34.2established in rule. A certified building official-limited shall accumulate 16 continuing 34.3education units for each two-year certification period thereafter in any education program 34.4that is approved under Minnesota Rules, part 1301.1000. 34.5An accessibility specialist must accumulate four continuing education units in any 34.6of the programs described in Minnesota Rules, part 1301.1000, subpart 1 or 2. The four 34.7units must be for courses relating to building accessibility, plan review, field inspection, 34.8or building code administration. 34.9Continuing education programs may be approved as established in rule. 34.10 (b) Subject to sections 326B.101 to 326B.194, the commissioner may by rule 34.11establish or approve continuing education programs for certified building officials dealing 34.12with matters of building code administration, inspection, and enforcement. 34.13 Each person certified as a building official for the state must satisfactorily complete 34.14applicable educational programs established or approved by the commissioner to retain 34.15renew certification. 34.16(c) The state building official may grant an extension of time to comply with 34.17continuing education requirements if the certificate holder requesting the extension of 34.18time shows cause for the extension. The request for the extension must be in writing. For 34.19purposes of this section, the certificate holder's current certification effective dates shall 34.20remain the same. The extension does not relieve the certificate holder from complying 34.21with the continuing education requirements for the next two-year period. 34.22 Sec. 45. Minnesota Statutes 2008, section 326B.133, subdivision 11, is amended to 34.23read: 34.24 Subd. 11. Failure to renew. An individual who has failed to make a timely 34.25application for renewal of a certificate is not certified and must not serve as the designated 34.26building official for any municipality, or a certified building official, a certified building 34.27official-limited, or an accessibility specialist until a renewed certificate has been issued by 34.28the commissioner. 34.29 Sec. 46. Minnesota Statutes 2008, section 326B.197, is amended to read: 34.30326B.197 BOND REQUIRED FOR CERTAIN CONTRACTORS. 34.31 (a) A person contracting to do gas, heating, ventilation, cooling, air conditioning, 34.32fuel burning, or refrigeration work must give and maintain bond to the state in the amount 34.33of $25,000 for all work entered into within the state. The bond must be for the benefit of 34.34persons suffering financial loss by reason of the contractor's failure to comply with the 35.1requirements of the State Mechanical Code. A bond given to the state must be filed with 35.2the commissioner of labor and industry and is in lieu of all other bonds to any political 35.3subdivision required for work covered by this section. The bond must be written by a 35.4corporate surety licensed to do business in the state. 35.5 (b) The commissioner of labor and industry may charge each person giving bond 35.6under this section an annual a biennial bond filing fee of $15 $100. 35.7 Sec. 47. Minnesota Statutes 2008, section 326B.33, subdivision 18, is amended to read: 35.8 Subd. 18. Examination. In addition to the other requirements described in this 35.9section and sections 326B.091 to 326B.098, and except as provided in subdivision 20, as a 35.10precondition to issuance of a personal license, each applicant must pass a written or oral 35.11examination developed and administered by the commissioner to ensure the competence of 35.12each applicant for license. An oral examination shall be administered only to an applicant 35.13who furnishes a written statement from a certified teacher or other professional, trained in 35.14the area of reading disabilities stating that the applicant has a specific reading disability 35.15which would prevent the applicant from performing satisfactorily on a written test. The 35.16oral examination shall be structured so that an applicant who passes the examination 35.17will not impair the applicant's own safety or that of others while acting as a licensed 35.18individual. No individual failing an examination may retake it for six months thereafter, 35.19but within such six months the individual may take an examination for a lesser grade of 35.20license. Any individual failing to renew a personal license for two years or more after its 35.21expiration, and any licensee whose personal license is revoked under this chapter, shall 35.22be required to retake the examination before being issued a new license. An individual 35.23whose personal license is revoked under any other chapter is not required to retake the 35.24examination before being issued a new license, unless the personal license was revoked 35.25two years or more before the commissioner received the completed application for a new 35.26license. A licensee whose personal license is suspended for any reason is not required to 35.27retake the examination before the personal license is reinstated, unless the personal license 35.28has not been reinstated within two years after the suspension began. 35.29 An applicant for a personal license shall submit to the commissioner an application 35.30and examination fee at the time of application. Upon approval of the application, the 35.31commissioner shall schedule the applicant for the next available examination, which shall 35.32be held within 60 days. The applicant shall be allowed one opportunity to reschedule 35.33an examination without being required to submit another application and examination 35.34fee. Additionally, an applicant who fails an examination, or whose application was not 35.35approved, shall submit another application and examination fee. 36.1 Sec. 48. Minnesota Statutes 2009 Supplement, section 326B.33, subdivision 19, 36.2is amended to read: 36.3 Subd. 19. License, registration, and renewal fees; expiration. (a) Unless 36.4revoked or suspended under this chapter, all licenses issued or renewed under this section 36.5expire on the date specified in this subdivision. Master licenses expire March 1 of each 36.6odd-numbered year after issuance or renewal. Electrical contractor licenses expire March 36.71 of each even-numbered year after issuance or renewal. Technology system contractor 36.8licenses expire August 1 of each even-numbered year after issuance or renewal. All 36.9other personal licenses expire two years from the date of original issuance and every two 36.10years thereafter. Registrations of unlicensed individuals expire one year from the date of 36.11original issuance and every year thereafter. 36.12 (b) Fees for application and examination, and for the original issuance and each 36.13subsequent renewal, are: 36.14 (1) For each personal license application and examination: $35; 36.15 (2) For original issuance and each subsequent renewal of: 36.16 Class A Master or master special electrician, including master elevator constructor: 36.17$40 per year; 36.18 Class B Master: $25 per year; 36.19 Power Limited Technician: $15 per year; 36.20 Class A Journeyman, Class B Journeyman, Installer, Elevator Constructor, Lineman, 36.21or Maintenance Electrician other than master special electrician: $15 per year; 36.22 Contractor: $100 per year; 36.23 Unlicensed individual registration: $15 per year. 36.24 (c) If any new license is issued in accordance with this subdivision for less than two 36.25years, the fee for the license shall be prorated on an annual basis. 36.26 (d) A license fee may not be refunded after a license is issued or renewed. However, 36.27if the fee paid for a license was not prorated in accordance with this subdivision, the 36.28amount of the overpayment shall be refunded. 36.29 (e) Any contractor who seeks reissuance of a license after it has been revoked or 36.30suspended under this chapter shall submit a reissuance fee of $100 before the license is 36.31reinstated. 36.32 (f) An individual or contractor who fails to renew a license before 30 days after the 36.33expiration or registration of the license must submit a late fee equal to one year's license 36.34fee in addition to the full renewal fee. Fees for renewed licenses or registrations are not 36.35prorated. An individual or contractor that fails to renew a license or registration by the 36.36expiration date is unlicensed until the license or registration is renewed. 37.1(b) For purposes of calculating license fees and renewal license fees required under 37.2section 326B.092: 37.3(1) the registration of an unlicensed individual under subdivision 12 shall be 37.4considered an entry level license; 37.5(2) the following licenses shall be considered journeyman licenses: Class A 37.6journeyman electrician, Class B journeyman electrician, Class A installer, Class B installer, 37.7elevator constructor, lineman, maintenance electrician, and power limited technician; 37.8(3) the following licenses shall be considered master licenses: Class A master 37.9electrician, Class B master electrician, and master elevator constructor; and 37.10(4) the following licenses shall be considered business licenses: Class A electrical 37.11contractor, Class B electrical contractor, elevator contractor, and technology systems 37.12contractor. 37.13(c) For each filing of a certificate of responsible person by an employer, the fee is 37.14$100. 37.15 Sec. 49. Minnesota Statutes 2008, section 326B.33, subdivision 20, is amended to read: 37.16 Subd. 20. Reciprocity. The commissioner may enter into reciprocity agreements 37.17for personal licenses with another state if approved by the board. Once approved by the 37.18board, the commissioner may issue a personal license without requiring the applicant to 37.19pass an examination provided the applicant: 37.20 (a) submits an application under this section; 37.21 (b) pays the application and examination fee and license fee required under this 37.22section 326B.092; and 37.23 (c) holds a valid comparable license in the state participating in the agreement. 37.24 Agreements are subject to the following: 37.25 (1) The parties to the agreement must administer a statewide licensing program that 37.26includes examination and qualifying experience or training comparable to Minnesota's. 37.27 (2) The experience and training requirements under which an individual applicant 37.28qualified for examination in the qualifying state must be deemed equal to or greater than 37.29required for an applicant making application in Minnesota at the time the applicant 37.30acquired the license in the qualifying state. 37.31 (3) The applicant must have acquired the license in the qualifying state through an 37.32examination deemed equivalent to the same class of license examination in Minnesota. 37.33A lesser class of license may be granted where the applicant has acquired a greater 37.34class of license in the qualifying state and the applicant otherwise meets the conditions 37.35of this subdivision. 38.1 (4) At the time of application, the applicant must hold a valid license in the 38.2qualifying state and have held the license continuously for at least one year before making 38.3application in Minnesota. 38.4 (5) An applicant is not eligible for a license under this subdivision if the applicant 38.5has failed the same or greater class of license examination in Minnesota, or if the 38.6applicant's license of the same or greater class has been revoked or suspended. 38.7 (6) An applicant who has failed to renew a personal license for two years or more 38.8after its expiration is not eligible for a license under this subdivision. 38.9 Sec. 50. Minnesota Statutes 2008, section 326B.33, subdivision 21, is amended to read: 38.10 Subd. 21. Exemptions from licensing. (a) An individual who is a maintenance 38.11electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 38.12if: 38.13 (1) the individual is engaged in the maintenance and repair of electrical equipment, 38.14apparatus, and facilities that are owned or leased by the individual's employer and that are 38.15located within the limits of property operated, maintained, and either owned or leased by 38.16the individual's employer; 38.17 (2) the individual is supervised by: 38.18 (i) the responsible master electrician for a contractor who has contracted with the 38.19individual's employer to provide services for which a contractor's license is required; or 38.20 (ii) a licensed master electrician, a licensed maintenance electrician, an electrical 38.21engineer, or, if the maintenance and repair work is limited to technology circuits or 38.22systems work, a licensed power limited technician; and 38.23 (3) the individual's employer has filed on file with the commissioner a current 38.24certificate of responsible person, signed by the responsible master electrician of the 38.25contractor, the licensed master electrician, the licensed maintenance electrician, the 38.26electrical engineer, or the licensed power limited technician, and stating that the person 38.27signing the certificate is responsible for ensuring that the maintenance and repair work 38.28performed by the employer's employees complies with the Minnesota Electrical Act and 38.29the rules adopted under that act. The employer must pay a filing fee to file a certificate of 38.30responsible person with the commissioner. The certificate shall expire two years from the 38.31date of filing. In order to maintain a current certificate of responsible person, the employer 38.32must resubmit a certificate of responsible person, with a filing fee, no later than two years 38.33from the date of the previous submittal. 38.34 (b) Employees of a licensed electrical or technology systems contractor or other 38.35employer where provided with supervision by a master electrician in accordance with 39.1subdivision 1, or power limited technician in accordance with subdivision 7, paragraph 39.2(a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399 39.3for the planning, laying out, installing, altering, and repairing of technology circuits or 39.4systems except planning, laying out, or installing: 39.5 (1) in other than residential dwellings, class 2 or class 3 remote control circuits that 39.6control circuits or systems other than class 2 or class 3, except circuits that interconnect 39.7these systems through communication, alarm, and security systems are exempted from 39.8this paragraph; 39.9 (2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing 39.10physically unprotected circuits other than class 2 or class 3; or 39.11 (3) technology circuits or systems in hazardous classified locations as covered by 39.12chapter 5 of the National Electrical Code. 39.13 (c) Companies and their employees that plan, lay out, install, alter, or repair class 39.142 and class 3 remote control wiring associated with plug or cord and plug connected 39.15appliances other than security or fire alarm systems installed in a residential dwelling are 39.16not required to hold a license under sections 326B.31 to 326B.399. 39.17 (d) Heating, ventilating, air conditioning, and refrigeration contractors and their 39.18employees are not required to hold or obtain a license under sections 326B.31 to 326B.399 39.19when performing heating, ventilating, air conditioning, or refrigeration work as described 39.20in section 326B.38. 39.21 (e) Employees of any electrical, communications, or railway utility, cable 39.22communications company as defined in section 238.02, or a telephone company as defined 39.23under section 237.01 or its employees, or of any independent contractor performing work 39.24on behalf of any such utility, cable communications company, or telephone company, shall 39.25not be required to hold a license under sections 326B.31 to 326B.399: 39.26 (1) while performing work on installations, materials, or equipment which are owned 39.27or leased, and operated and maintained by such utility, cable communications company, or 39.28telephone company in the exercise of its utility, antenna, or telephone function, and which 39.29 (i) are used exclusively for the generation, transformation, distribution, transmission, 39.30or metering of electric current, or the operation of railway signals, or the transmission 39.31of intelligence and do not have as a principal function the consumption or use of electric 39.32current or provided service by or for the benefit of any person other than such utility, cable 39.33communications company, or telephone company, and 39.34 (ii) are generally accessible only to employees of such utility, cable communications 39.35company, or telephone company or persons acting under its control or direction, and 40.1 (iii) are not on the load side of the service point or point of entrance for 40.2communication systems; 40.3 (2) while performing work on installations, materials, or equipment which are a part 40.4of the street lighting operations of such utility; or 40.5 (3) while installing or performing work on outdoor area lights which are directly 40.6connected to a utility's distribution system and located upon the utility's distribution poles, 40.7and which are generally accessible only to employees of such utility or persons acting 40.8under its control or direction. 40.9 (f) An owner shall not be required to hold or obtain a license under sections 326B.31 40.10to 326B.399. 40.11 Sec. 51. Minnesota Statutes 2008, section 326B.42, is amended by adding a 40.12subdivision to read: 40.13 Subd. 1a. Contractor. "Contractor" means a person who performs or offers 40.14to perform any plumbing work, with or without compensation, who is licensed as a 40.15contractor by the commissioner. Contractor includes plumbing contractors and restricted 40.16plumbing contractors. 40.17 Sec. 52. Minnesota Statutes 2008, section 326B.42, is amended by adding a 40.18subdivision to read: 40.19 Subd. 8. Plumbing contractor. "Plumbing contractor" means a licensed contractor 40.20whose responsible licensed plumber is a licensed master plumber. 40.21 Sec. 53. Minnesota Statutes 2008, section 326B.42, is amended by adding a 40.22subdivision to read: 40.23 Subd. 9. Responsible licensed plumber. A contractor's "responsible licensed 40.24plumber" means the licensed master plumber or licensed restricted master plumber 40.25designated in writing by the contractor in the contractor's license application, or in another 40.26manner acceptable to the commissioner, as the individual responsible for the contractor's 40.27compliance with sections 326B.41 to 326B.49, all rules adopted under these sections and 40.28sections 326B.50 to 326B.59, and all orders issued under section 326B.082. 40.29 Sec. 54. Minnesota Statutes 2008, section 326B.42, is amended by adding a 40.30subdivision to read: 41.1 Subd. 10. Restricted plumbing contractor. "Restricted plumbing contractor" 41.2means a licensed contractor whose responsible licensed plumber is a licensed restricted 41.3master plumber. 41.4 Sec. 55. Minnesota Statutes 2008, section 326B.44, is amended to read: 41.5326B.44 LOCAL REGULATIONS. 41.6 Any of the following entities may, by ordinance, adopt local regulations providing 41.7for plumbing permits, approval of plans and specifications, and inspections of plumbing, 41.8which regulations are not in conflict with the plumbing code: any city having a system 41.9of waterworks or sewerage, regardless of population; any town having a population of 41.105,000 or more according to the last federal census, exclusive of any statutory cities 41.11located therein; and the Metropolitan Airports Commission. No such entity shall prohibit 41.12plumbers plumbing contractors licensed by the commissioner from engaging in or working 41.13at the business of plumbing, except cities and statutory cities which, prior to April 21, 41.141933, by ordinance required the licensing of plumbers. No such entity shall require any 41.15person who engages in the business of plumbing to post a bond as a prerequisite for 41.16engaging in the business of plumbing, except the bond to the state required under section 41.17326B.46 and except any performance bond required under a contract with the person 41.18for the performance of plumbing work for the entity. No such entity shall require any 41.19person who engages in the business of plumbing to maintain public liability insurance 41.20as a prerequisite for engaging in the business of plumbing, except the insurance required 41.21under section 326B.46 and except any public liability insurance required under a contract 41.22with the person for the performance of plumbing work for the entity. No city or town may 41.23require a license for persons performing building sewer or water service installation who 41.24have completed pipe laying training as prescribed by the commissioner of labor and 41.25industry. Any city by ordinance may prescribe regulations, reasonable standards, and 41.26inspections and grant permits to any person engaged in the business of installing water 41.27softeners, who is not licensed as a master plumber or journeyman plumber contractor by 41.28the commissioner, to connect water softening and water filtering equipment to private 41.29residence water distribution systems, where provision has been previously made therefor 41.30and openings left for that purpose or by use of cold water connections to a domestic 41.31water heater; where it is not necessary to rearrange, make any extension or alteration of, 41.32or addition to any pipe, fixture or plumbing connected with the water system except to 41.33connect the water softener, and provided the connections so made comply with minimum 41.34standards prescribed by the Plumbing Board. 42.1 Sec. 56. Minnesota Statutes 2008, section 326B.46, as amended by Laws 2009, chapter 42.278, article 5, section 14, and chapter 109, section 13, is amended to read: 42.3326B.46 LICENSING, BOND AND INSURANCE. 42.4 Subdivision 1. License required. (a) No person individual shall engage in or work 42.5at the business of a master plumber, restricted master plumber, journeyman plumber, 42.6and restricted journeyman plumber unless licensed to do so by the state commissioner. 42.7A license is not required for individuals performing building sewer or water service 42.8installation who have completed pipe laying training as prescribed by the commissioner 42.9of labor and industry. A master plumber may also work as a journeyman plumber, a 42.10restricted journeyman plumber, and a restricted master plumber. A journeyman plumber 42.11may also work as a restricted journeyman plumber. Anyone not so licensed may do 42.12plumbing work which complies with the provisions of the minimum standards prescribed 42.13by the Plumbing Board on premises or that part of premises owned and actually occupied 42.14by the worker as a residence, unless otherwise forbidden to do so by a local ordinance. 42.15 (b) No person shall engage in the business of planning, superintending, or installing 42.16plumbing or shall install plumbing in connection with the dealing in and selling of 42.17plumbing material and supplies unless at all times a licensed master plumber, or in cities 42.18and towns with a population of fewer than 5,000 according to the last federal census, a 42.19restricted master plumber, who shall be responsible for proper installation, is in charge 42.20of the plumbing work of the person, firm, or corporation. 42.21(c) Except as provided in subdivision 2, no person shall perform or offer to perform 42.22plumbing work with or without compensation unless the person obtains a contractor's 42.23license. A contractor's license does not of itself qualify its holder to perform the plumbing 42.24work authorized by holding a master, journeyman, restricted master, or restricted 42.25journeyman license. 42.26 Subd. 1a. Exemptions from licensing. (a) An individual without a contractor 42.27license may do plumbing work on the individual's residence in accordance with 42.28subdivision 1, paragraph (a). 42.29(b) An individual who is an employee working on the maintenance and repair of 42.30plumbing equipment, apparatus, or facilities owned or leased by the individual's employer 42.31and which is within the limits of property owned or leased, and operated or maintained by 42.32the individual's employer, shall not be required to maintain a contractor license as long 42.33as the employer has on file with the commissioner a current certificate of responsible 42.34person. The certificate must be signed by the responsible master plumber or, in an area of 42.35the state that is not a city or town with a population of more than 5,000 according to the 42.36last federal census, restricted master plumber, and must state that the person signing the 43.1certificate is responsible for ensuring that the maintenance and repair work performed by 43.2the employer's employees comply with sections 326B.41 to 326B.49, all rules adopted 43.3under those sections and sections 326B.50 to 326B.59, and all orders issued under section 43.4326B.082. The employer must pay a filing fee to file a certificate of responsible person 43.5with the commissioner. The certificate shall expire two years from the date of filing. In 43.6order to maintain a current certificate of responsible person, the employer must resubmit a 43.7certificate of responsible person, with a filing fee, no later than two years from the date of 43.8the previous submittal. The filing of the certificate of responsible person does not exempt 43.9any employee of the employer from the requirements of this chapter regarding individual 43.10licensing as a plumber or registration as a plumber's apprentice. 43.11(c) If a contractor employs a licensed plumber, the licensed plumber does not need a 43.12separate contractor license to perform plumbing work on behalf of the employer within 43.13the scope of the licensed plumber's license. 43.14 Subd. 1b. Employment of master plumber or restricted master plumber. (a) 43.15Each contractor must designate a responsible licensed plumber, who shall be responsible 43.16for the performance of all plumbing work in accordance with sections 326B.41 to 43.17326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all 43.18orders issued under section 326B.082. A plumbing contractor's responsible licensed 43.19plumber must be a master plumber. A restricted plumbing contractor's responsible licensed 43.20plumber must be a master plumber or a restricted master plumber. A plumbing contractor 43.21license authorizes the contractor to offer to perform and, through licensed and registered 43.22individuals, to perform plumbing work in all areas of the state. A restricted plumbing 43.23contractor license authorizes the contractor to offer to perform and, through licensed and 43.24registered individuals, to perform plumbing work in all areas of the state except in cities 43.25and towns with a population of more than 5,000 according to the last federal census. 43.26(b) If the contractor is an individual or sole proprietorship, the responsible licensed 43.27plumber must be the individual, proprietor, or managing employee. If the contractor is 43.28a partnership, the responsible licensed plumber must be a general partner or managing 43.29employee. If the contractor is a limited liability company, the responsible licensed plumber 43.30must be a chief manager or managing employee. If the contractor is a corporation, the 43.31responsible licensed plumber must be an officer or managing employee. If the responsible 43.32licensed plumber is a managing employee, the responsible licensed plumber must be 43.33actively engaged in performing plumbing work on behalf of the contractor, and cannot be 43.34employed in any capacity as a plumber for any other contractor. An individual may be 43.35the responsible licensed plumber for only one contractor. 44.1(c) All applications and renewals for contractor licenses shall include a verified 44.2statement that the applicant or licensee has complied with this subdivision. 44.3 Subd. 2. Bond; insurance. Any person contracting to do plumbing work must give 44.4As a condition of licensing, each contractor shall give and maintain bond to the state in the 44.5amount of at least $25,000 for (1) all plumbing work entered into within the state or (2) 44.6all plumbing work and subsurface sewage treatment work entered into within the state. 44.7If the bond is for both plumbing work and subsurface sewage treatment work, the bond 44.8must comply with the requirements of this section and section 115.56, subdivision 2, 44.9paragraph (e). The bond shall be for the benefit of persons injured or suffering financial 44.10loss by reason of failure to comply with the requirements of the State Plumbing Code and, 44.11if the bond is for both plumbing work and subsurface sewage treatment work, financial 44.12loss by reason of failure to comply with the requirements of sections 115.55 and 115.56. 44.13The bond shall be filed with the commissioner and shall be written by a corporate surety 44.14licensed to do business in the state. 44.15 In addition, each applicant for a master plumber license or restricted master plumber 44.16license, or renewal thereof, shall provide evidence of as a condition of licensing, each 44.17contractor shall have and maintain in effect public liability insurance, including products 44.18liability insurance with limits of at least $50,000 per person and $100,000 per occurrence 44.19and property damage insurance with limits of at least $10,000. The insurance shall be 44.20written by an insurer licensed to do business in the state of Minnesota and each licensed 44.21master plumber shall maintain on file with the commissioner a certificate evidencing the 44.22insurance providing that the insurance shall not be canceled without the insurer first giving 44.2315 days written notice to the commissioner. The term of the insurance shall be concurrent 44.24with the term of the license. 44.25 Subd. 3. Bond and insurance exemption. If a master plumber or restricted master 44.26plumber who is in compliance with the bond and insurance requirements of subdivision 2, 44.27employs a licensed plumber, the employee plumber shall not be required to meet the bond 44.28and insurance requirements of subdivision 2. An individual who is an employee working 44.29on the maintenance and repair of plumbing equipment, apparatus, or facilities owned or 44.30leased by the individual's employer and which is within the limits of property owned or 44.31leased, and operated or maintained by the individual's employer, shall not be required to 44.32meet the bond and insurance requirements of subdivision 2. 44.33 Subd. 4. Fee. (a) Each person giving bond to the state under subdivision 2 shall pay 44.34the department a bond registration fee of $40 for one year or $80 for two years. 44.35(b) The commissioner shall in a manner determined by the commissioner, without 44.36the need for any rulemaking under chapter 14, phase in the bond registration from one year 45.1to two years so that the expiration of bond registration corresponds with the expiration of 45.2the license issued under section or 326B.49, subdivision 1. 45.3 Subd. 5. Exterior connections. Persons licensed as manufactured home installers 45.4under chapter 327B are not required to be licensed under sections 326B.42 to 326B.49 45.5when connecting the exterior building drain sewer outlets to the aboveground building 45.6sewer system and when connecting the exterior water line to the aboveground water 45.7system to the manufactured home as described in National Manufactured Housing 45.8Construction and Safety Standards Act of 1974, United States Code, title 42, section 5401 45.9et seq. No additional licensure, bond, or insurance related to the scope of work permitted 45.10under this subdivision may be required of a licensed manufactured home installer by 45.11any unit of government. 45.12 Sec. 57. Minnesota Statutes 2008, section 326B.47, is amended to read: 45.13326B.47 PLUMBER'S APPRENTICES. 45.14 Subdivision 1. Registration; supervision; records. (a) All plumber's apprentices 45.15must be registered. To be a registered plumber's apprentice, an individual must either: 45.16 (1) be an individual employed in the trade of plumbing under an apprenticeship 45.17agreement approved by the department under Minnesota Rules, part 5200.0300; or 45.18 (2) be an unlicensed individual registered with the commissioner under subdivision 45.193. 45.20(b) A plumber's apprentice is authorized to assist in the installation of plumbing 45.21only while under the direct supervision of a master, restricted master, journeyman, or 45.22restricted journeyman plumber. The master, restricted master, journeyman, or restricted 45.23journeyman plumber is responsible for ensuring that all plumbing work performed by the 45.24plumber's apprentice complies with the plumbing code. The supervising master, restricted 45.25master, journeyman, or restricted journeyman must be licensed and must be employed 45.26by the same employer as the plumber's apprentice. Licensed individuals shall not permit 45.27plumber's apprentices to perform plumbing work except under the direct supervision of 45.28an individual actually licensed to perform such work. Plumber's apprentices shall not 45.29supervise the performance of plumbing work or make assignments of plumbing work 45.30to unlicensed individuals. 45.31(c) Contractors employing plumber's apprentices to perform plumbing work shall 45.32maintain records establishing compliance with this subdivision that shall identify all 45.33plumber's apprentices performing plumbing work, and shall permit the department to 45.34examine and copy all such records. 46.1 Subd. 2. Journeyman exam. A plumber's apprentice who has completed four 46.2years of practical plumbing experience is eligible to take the journeyman plumbing 46.3examination. Up to 24 months of practical plumbing experience prior to becoming a 46.4plumber's apprentice may be applied to the four-year experience requirement. However, 46.5none of this practical plumbing experience may be applied if the individual did not have 46.6any practical plumbing experience in the 12-month period immediately prior to becoming 46.7a plumber's apprentice. The Plumbing Board may adopt rules to evaluate whether 46.8the individual's past practical plumbing experience is applicable in preparing for the 46.9journeyman's examination. If two years after completing the training the individual has 46.10not taken the examination, the four years of experience shall be forfeited. 46.11 The commissioner may allow an extension of the two-year period for taking the 46.12exam for cases of hardship or other appropriate circumstances. 46.13 Subd. 3. Registration, rules, applications, renewals, and fees. An unlicensed 46.14individual may register by completing and submitting to the commissioner a registration 46.15an application form provided by the commissioner, with all fees required by section 46.16326B.092. A completed registration application form must state the date the individual 46.17began training, the individual's age, schooling, previous experience, and employer, 46.18and other information required by the commissioner. The board may prescribe rules, 46.19not inconsistent with this section, for the registration of unlicensed individuals. Each 46.20applicant for initial registration as a plumber's apprentice shall pay the department an 46.21application fee of $25. Applications for initial registration may be submitted at any time. 46.22Registration must be renewed annually and shall be for the period from July 1 of each year 46.23to June 30 of the following year. Applications for renewal registration must be received 46.24by the commissioner by June 30 of each registration period on forms provided by the 46.25commissioner, and must be accompanied by a fee of $25. An application for renewal 46.26registration received on or after July 1 in any year but no more than three months after 46.27expiration of the previously issued registration must pay the past due renewal fee plus a 46.28late fee of $25. No applications for renewal registration will be accepted more than three 46.29months after expiration of the previously issued registration. 46.30 Sec. 58. Minnesota Statutes 2008, section 326B.475, subdivision 2, is amended to read: 46.31 Subd. 2. Use of license. A restricted master plumber and restricted journeyman 46.32plumber may engage in the plumbing trade in all areas of the state except in cities and 46.33towns with a population of more than 5,000 according to the last federal census. 47.1 Sec. 59. Minnesota Statutes 2009 Supplement, section 326B.475, subdivision 4, 47.2is amended to read: 47.3 Subd. 4. Renewal; use period for license. (a) A restricted master plumber and 47.4restricted journeyman plumber license must be renewed for as long as that licensee 47.5engages in the plumbing trade. Notwithstanding section 326B.094, failure to renew a 47.6restricted master plumber and restricted journeyman plumber license within 12 months 47.7after the expiration date will result in permanent forfeiture of the restricted master plumber 47.8and restricted journeyman plumber license. 47.9(b) The commissioner shall in a manner determined by the commissioner, without 47.10the need for any rulemaking under chapter 14, phase in the renewal of restricted master 47.11plumber and restricted journeyman plumber licenses from one year to two years. By 47.12June 30, 2011, all restricted master plumber and restricted journeyman plumber licenses 47.13shall be two-year licenses. 47.14 Sec. 60. Minnesota Statutes 2009 Supplement, section 326B.49, subdivision 1, is 47.15amended to read: 47.16 Subdivision 1. Application, examination, and license fees. (a) Applications for 47.17master and journeyman plumber's license licenses shall be made to the commissioner, with 47.18fee all fees required by section 326B.092. Unless the applicant is entitled to a renewal, 47.19the applicant shall be licensed by the commissioner only after passing a satisfactory 47.20examination developed and administered by the commissioner, based upon rules adopted 47.21by the Plumbing Board, showing fitness. Examination fees for both journeyman and 47.22master plumbers shall be $50 for each examination. Upon being notified of having 47.23successfully passed the examination for original license the applicant shall submit an 47.24application, with the license fee herein provided. The license fee for each initial master 47.25plumber's license shall be $240. The license fee for each initial journeyman plumber's 47.26license shall be $110. 47.27(b) All initial master and journeyman plumber's licenses shall be effective for more 47.28than one calendar year and shall expire on December 31 of the year after the year in which 47.29the application is made. The license fee for each renewal master plumber's license shall be 47.30$120 for one year or $240 for two years. The license fee for each renewal journeyman 47.31plumber's license shall be $55 for one year or $110 for two years. All master plumber's 47.32licenses shall expire on December 31 of each even-numbered year after issuance or 47.33renewal. The commissioner shall in a manner determined by the commissioner, without 47.34the need for any rulemaking under chapter 14, phase in the renewal of master and 48.1journeyman plumber's licenses from one year to two years. By June 30, 2011, all renewed 48.2master and journeyman plumber's licenses shall be two-year licenses. 48.3(c) Any licensee who does not renew a license within two years after the license 48.4expires is no longer eligible for renewal. Such an individual must retake and pass the 48.5examination before a new license will be issued. A journeyman or master plumber who 48.6submits a license renewal application after the time specified in rule but within two 48.7years after the license expired must pay all past due renewal fees plus a late fee of $25. 48.8Applications for contractor licenses shall be made to the commissioner, with all fees 48.9required by section 326B.092. All contractor licenses shall expire on December 31 of each 48.10odd-numbered year after issuance or renewal. 48.11(d) For purposes of calculating license fees and renewal license fees required under 48.12section 326B.092: 48.13(1) the following licenses shall be considered business licenses: plumbing contractor 48.14and restricted plumbing contractor; 48.15(2) the following licenses shall be considered master licenses: master plumber and 48.16restricted master plumber; 48.17(3) the following licenses shall be considered journeyman licenses: journeyman 48.18plumber and restricted journeyman plumber; and 48.19(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3, 48.20shall be considered an entry level license. 48.21(e) For each filing of a certificate of responsible person by an employer, the fee is 48.22$100. 48.23 Sec. 61. Minnesota Statutes 2008, section 326B.50, is amended by adding a 48.24subdivision to read: 48.25 Subd. 1a. Responsible licensed master. "Responsible licensed master" means the 48.26licensed water conditioning master or licensed master plumber designated in writing by 48.27the water conditioning contractor in the water conditioning contractor's license application, 48.28or in another manner acceptable to the commissioner, as the individual responsible for 48.29the water conditioning contractor's compliance with sections 326B.50 to 326B.59, all 48.30rules adopted under these sections, the Minnesota Plumbing Code, and all orders issued 48.31under section 326B.082. 48.32 Sec. 62. Minnesota Statutes 2008, section 326B.50, is amended by adding a 48.33subdivision to read: 49.1 Subd. 2a. Water conditioning contractor. "Water conditioning contractor" 49.2means a person who performs or offers to perform any water conditioning installation or 49.3water conditioning servicing, with or without compensation, who is licensed as a water 49.4conditioning contractor by the commissioner. 49.5 Sec. 63. Minnesota Statutes 2008, section 326B.50, is amended by adding a 49.6subdivision to read: 49.7 Subd. 3a. Water conditioning journeyman. "Water conditioning journeyman" 49.8means an individual, other than a water conditioning master, who has demonstrated 49.9practical knowledge of water conditioning installation and servicing, and who is licensed 49.10by the commissioner as a water conditioning journeyman. 49.11 Sec. 64. Minnesota Statutes 2008, section 326B.50, is amended by adding a 49.12subdivision to read: 49.13 Subd. 3b. Water conditioning master. "Water conditioning master" means 49.14an individual who has demonstrated skill in planning, superintending, installing, and 49.15servicing water conditioning installations, and who is licensed by the commissioner as a 49.16water conditioning master. 49.17 Sec. 65. Minnesota Statutes 2008, section 326B.54, is amended to read: 49.18326B.54 VIOLATIONS TO BE REPORTED TO COMMISSIONER. 49.19 Such local authority as may be designated by any such ordinance for the issuance 49.20of such water conditioning installation and servicing permits and approval of such plans 49.21shall report to the commissioner persistent or willful violations of the same and any 49.22incompetence of a licensed water conditioning contractor, licensed water conditioning 49.23master, or licensed water conditioning installer journeyman observed by the local authority. 49.24 Sec. 66. Minnesota Statutes 2008, section 326B.55, as amended by Laws 2010, chapter 49.25183, section 13, is amended to read: 49.26326B.55 LICENSING IN CERTAIN CITIES; QUALIFICATIONS; RULES. 49.27 Subdivision 1. Licensing. (a) Except as provided in paragraph (d), no individual 49.28shall perform water conditioning installation or water conditioning servicing unless 49.29licensed by the commissioner as a master plumber, journeyman plumber, water 49.30conditioning master, or water conditioning journeyman, or, in all areas of the state except 49.31in cities and towns with a population of more than 5,000 according to the last federal 49.32census, as a restricted master plumber or restricted journeyman plumber. 50.1(b) Except as provided in paragraph (e), no person shall perform or offer to 50.2perform water conditioning installation or water conditioning servicing with or without 50.3compensation unless the person obtains a water conditioning contractor's license. A water 50.4conditioning contractor's license does not of itself qualify its holder to perform the water 50.5conditioning installation or water conditioning servicing authorized by holding a water 50.6conditioning master or water conditioning journeyman license. 50.7(c) Except as provided in paragraph (d), no person shall engage in or work at the 50.8business of water conditioning installation or servicing anywhere in the state unless (1) 50.9at all times an individual licensed as a master plumber or water conditioning contractor 50.10master by the commissioner shall be, who is responsible for the proper installation and 50.11servicing, is in charge of the water conditioning installation and servicing work of such 50.12person, and (2) all installations, other than. 50.13If a water conditioning contractor employs a licensed master, restricted master, 50.14journeyman or restricted journeyman plumber, or a licensed water conditioning master 50.15or journeyman, then the licensed individual does not need a separate water conditioning 50.16contractor license to perform water conditioning installation or servicing on behalf of the 50.17employer within the scope of the individual's plumber license. 50.18(d) No water conditioning contractor, water conditioning master, or water 50.19conditioning journeyman license is required: 50.20(1) for exchanges of portable water conditioning equipment, are performed by a 50.21licensed water conditioning contractor or licensed water conditioning installer. Any 50.22individual not so licensed may; or 50.23(2) for an individual to perform water conditioning work that complies with the 50.24minimum standards prescribed by the Plumbing Board on premises or that part of premises 50.25owned and occupied by the worker individual as a residence, unless otherwise prohibited 50.26by a local ordinance. The scope of work that a master plumber, restricted master plumber, 50.27journeyman plumber, or restricted journeyman plumber is authorized to perform as an 50.28employee of a licensed water conditioning contractor shall be limited to the scope of work 50.29that the licensed water conditioning contractor is licensed to perform. 50.30 Subd. 2. Qualifications for licensing. (a) A water conditioning contractor master 50.31license shall be issued only to an individual who has demonstrated skill in planning, 50.32superintending, and servicing water conditioning installations, and has successfully passed 50.33the examination for water conditioning contractors masters. A water conditioning installer 50.34journeyman license shall only be issued to an individual other than a water conditioning 50.35contractor master who has demonstrated practical knowledge of water conditioning 50.36installation, and has successfully passed the examination for water conditioning installers 51.1journeymen. A water conditioning installer journeyman must successfully pass the 51.2examination for water conditioning contractors masters before being licensed as a water 51.3conditioning contractor master. 51.4(b) Each water conditioning contractor must designate a responsible licensed master 51.5plumber or a responsible licensed water conditioning master, who shall be responsible for 51.6the performance of all water conditioning installation and servicing in accordance with the 51.7requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 51.8326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If 51.9the water conditioning contractor is an individual or sole proprietorship, the responsible 51.10licensed master must be the individual, proprietor, or managing employee. If the water 51.11conditioning contractor is a partnership, the responsible licensed master must be a general 51.12partner or managing employee. If the water conditioning contractor is a limited liability 51.13company, the responsible licensed master must be a chief manager or managing employee. 51.14If the water conditioning contractor is a corporation, the responsible licensed master must 51.15be an officer or managing employee. If the responsible licensed master is a managing 51.16employee, the responsible licensed master must be actively engaged in performing water 51.17conditioning work on behalf of the water conditioning contractor and cannot be employed 51.18in any capacity as a water conditioning master or water conditioning journeyman for any 51.19other water conditioning contractor. An individual must not be the responsible licensed 51.20master for more than one water conditioning contractor. 51.21(c) All applications and renewals for water conditioning contractor licenses shall 51.22include a verified statement that the applicant or licensee has complied with paragraph (b). 51.23(d) Each application and renewal for a water conditioning master license, water 51.24conditioning journeyman license, or a water conditioning contractor license shall be 51.25accompanied by all fees required by section 326B.092. 51.26 Subd. 3. Commissioner. The commissioner shall: 51.27 (1) license water conditioning contractors, water conditioning masters, and installers 51.28water conditioning journeymen; and 51.29 (2) collect an examination fee from each examinee for a license as a water 51.30conditioning contractor and an examination fee from each examinee for a license as a 51.31water conditioning installer in an amount set forth in section the fees required by 51.32section 326B.092. 52.1 Sec. 67. Minnesota Statutes 2008, section 326B.56, as amended by Laws 2009, chapter 52.278, article 5, section 18, is amended to read: 52.3326B.56 ALTERNATIVE STATE BONDING AND INSURANCE 52.4REGULATION. 52.5 Subdivision 1. Bonds. (a) An applicant for a water conditioning contractor or 52.6installer license or renewal thereof who is required by any political subdivision to give a 52.7bond to obtain or maintain the license, may comply with any political subdivision bonding 52.8requirement by giving As a condition of licensing, each water conditioning contractor 52.9shall give and maintain a bond to the state as described in paragraph (b). No applicant for a 52.10water conditioning contractor or installer license who maintains the bond under paragraph 52.11(b) shall be otherwise required to meet the bond requirements of any political subdivision. 52.12 (b) Each bond given to the state under this subdivision shall be in the total sum of 52.13$3,000 conditioned upon the faithful and lawful performance of all water conditioning 52.14contracting or installing work installation or servicing done within the state. The bond 52.15shall be for the benefit of persons suffering injuries or damages due to the work. The bond 52.16shall be filed with the commissioner and shall be written by a corporate surety licensed to 52.17do business in this state. The bond must remain in effect at all times while the application 52.18is pending and while the license is in effect. 52.19 Subd. 2. Insurance. (a) Each applicant for a water conditioning contractor or 52.20installer license or renewal thereof who is required by any political subdivision to maintain 52.21insurance to obtain or maintain the license may comply with any political subdivision's 52.22insurance requirement by maintaining As a condition of licensing, each water conditioning 52.23contractor shall have and maintain in effect the insurance described in paragraph (b). 52.24No applicant for a water conditioning contractor or installer license who maintains the 52.25insurance described in paragraph (b) shall be otherwise required to meet the insurance 52.26requirements of any political subdivision. 52.27 (b) The insurance shall provide coverage, including products liability coverage, 52.28for all damages in connection with licensed work for which the licensee is liable, with 52.29personal damage limits of at least $50,000 per person and $100,000 per occurrence and 52.30property damage insurance with limits of at least $10,000. The insurance shall be written 52.31by an insurer licensed to do business in this state and a certificate evidencing the insurance 52.32shall be filed with the commissioner. The insurance must remain in effect at all times 52.33while the application is pending and while the license is in effect. The insurance shall not 52.34be canceled without the insurer first giving 15 days' written notice to the commissioner. 52.35 Subd. 3. Bond and insurance exemption. A water conditioning contractor or 52.36installer who is an employee of a water conditioning contractor or installer, including 53.1an employee engaged in the maintenance and repair of water conditioning equipment, 53.2apparatus, or facilities owned, leased and operated, or maintained by the employer, is 53.3not required to meet the bond and insurance requirements of subdivisions 1 and 2 or of 53.4any political subdivision. 53.5 Subd. 4. Fee. (a) The commissioner shall collect a $40 bond registration fee for 53.6one year or $80 for two years from each applicant for issuance or renewal of a water 53.7conditioning contractor or installer license who elects to proceed under subdivisions 53.81 and 2. 53.9(b) The commissioner shall in a manner determined by the commissioner, without 53.10the need for any rulemaking under chapter 14, phase in the bond registration from one year 53.11to two years so that the expiration of bond registration corresponds with the expiration of 53.12the license issued under section 326B.55. 53.13 Sec. 68. Minnesota Statutes 2009 Supplement, section 326B.58, is amended to read: 53.14326B.58 FEES; RENEWAL. 53.15 (a) Examination fees for both water conditioning contractors and water conditioning 53.16installers shall be $50 for each examination. Each initial water conditioning contractor 53.17and installer master and water conditioning journeyman license shall be effective for more 53.18than one calendar year and shall expire on December 31 of the year after the year in which 53.19the application is made. The license fee for each initial water conditioning contractor's 53.20license shall be $140, except that the license fee shall be $105 if the application is 53.21submitted during the last three months of the calendar year. The license fee for each 53.22renewal water conditioning contractor's license shall be $70 for one year or $140 for two 53.23years. The license fee for each initial water conditioning installer license shall be $70, 53.24except that the license fee shall be $52.50 if the application is submitted during the last 53.25three months of the calendar year. The license fee for each renewal water conditioning 53.26installer license shall be $35 for one year or $70 for two years. 53.27(b) The commissioner shall in a manner determined by the commissioner, without 53.28the need for any rulemaking under chapter 14, phase in the renewal of water conditioning 53.29contractor and installer master and journeyman licenses from one year to two years. By 53.30June 30, 2011, all renewed water conditioning contractor and installer licenses shall be 53.31two-year licenses. The commissioner Plumbing Board may by rule prescribe for the 53.32expiration and renewal of licenses. 53.33(c) Any licensee who does not renew a license within two years after the license 53.34expires is no longer eligible for renewal. Such an individual must retake and pass the 53.35examination before a new license will be issued. A water conditioning contractor or water 54.1conditioning installer who submits a license renewal application after the time specified 54.2in rule but within two years after the license expired must pay all past due renewal fees 54.3plus a late fee of $25 All water conditioning contractor licenses shall expire on December 54.431 of the year after issuance or renewal. 54.5(d) For purposes of calculating license fees and renewal fees required under section 54.6326B.092: 54.7(1) a water conditioning journeyman license shall be considered a journeyman 54.8license; 54.9(2) a water conditioning master license shall be considered a master license; and 54.10(3) a water conditioning contractor license shall be considered a business license. 54.11 Sec. 69. Minnesota Statutes 2008, section 326B.805, subdivision 6, is amended to read: 54.12 Subd. 6. Exemptions. The license requirement does not apply to: 54.13 (1) an employee of a licensee performing work for the licensee; 54.14 (2) a material person, manufacturer, or retailer furnishing finished products, 54.15materials, or articles of merchandise who does not install or attach the items; 54.16 (3) an owner of residential real estate who builds or improves any structure on 54.17residential real estate, if the building or improving is performed by the owner's bona fide 54.18employees or by individual owners personally. This exemption does not apply to an 54.19owner who constructs or improves property for purposes of speculation if the building 54.20or improving is performed by the owner's bona fide employees or by individual owners 54.21personally. A residential building contractor or residential remodeler will be presumed 54.22to be building or improving for purposes of speculation if the contractor or remodeler 54.23constructs or improves more than one property within any 24-month period; 54.24 (4) an architect or professional engineer engaging in professional practice as defined 54.25by section 326.02, subdivisions 2 and 3; 54.26 (5) a person whose total gross annual receipts for performing specialty skills for 54.27which licensure would be required under this section do not exceed $15,000; 54.28 (6) a mechanical contractor; 54.29 (7) a plumber, electrician, or other person whose profession is otherwise subject to 54.30statewide licensing, when engaged in the activity which is the subject of that licensure; 54.31 (8) specialty contractors who provide only one special skill as defined in section 54.32326B.802 ; 54.33 (9) a school district, or a technical college governed under chapter 136F; and 54.34 (10) Habitat for Humanity and Builders Outreach Foundation, and their individual 54.35volunteers when engaged in activities on their behalf. 55.1To qualify for the exemption in clause (5), a person must obtain a certificate of exemption 55.2from licensure from the commissioner. A certificate of exemption will be issued upon 55.3the applicant's filing with the commissioner, an affidavit stating that the applicant does 55.4not expect to exceed $15,000 in gross annual receipts derived from performing services 55.5which require licensure under this section during the calendar year in which the affidavit 55.6is received. For the purposes of calculating fees under section 326B.092, a certificate of 55.7exemption is an entry level license. To renew the exemption in clause (5), the applicant 55.8must file an affidavit stating that the applicant did not exceed $15,000 in gross annual 55.9receipts during the past calendar year. If a person, operating under the exemption in 55.10clause (5), exceeds $15,000 in gross receipts during any calendar year, the person 55.11must immediately surrender the exemption certificate of exemption and apply for the 55.12appropriate license. The person must remain licensed until such time as the person's gross 55.13annual receipts during a calendar year fall below $15,000. The person may then apply for 55.14an exemption for the next calendar year. 55.15 Sec. 70. Minnesota Statutes 2009 Supplement, section 326B.815, subdivision 1, 55.16is amended to read: 55.17 Subdivision 1. Licensing fee Fees. (a) The licensing fee for persons licensed 55.18pursuant to sections to , except for manufactured home installers, 55.19is $200 for a two-year period. The For the purposes of calculating fees under section 55.20326B.092, an initial or renewed residential contractor, residential remodeler, or residential 55.21roofer license is a business license. Notwithstanding section 326B.092, the licensing fee 55.22for manufactured home installers under section 327B.041 is $300 for a three-year period. 55.23(b) All initial and renewal licenses, except for manufactured home installer licenses, 55.24shall be effective for two years and shall expire on March 31 of the year after the year in 55.25which the application is made. The license fee for each renewal of a residential contractor, 55.26residential remodeler, or residential roofer license shall be $100 for one year and $200 55.27for two years. 55.28(c) The commissioner shall in a manner determined by the commissioner, without 55.29the need for any rulemaking under chapter 14, phase in the renewal of residential 55.30contractor, residential remodeler, and residential roofer licenses from one year to two 55.31years. By June 30, 2011, all renewed residential contractor, residential remodeler, and 55.32residential roofer licenses shall be two-year licenses. 55.33 Sec. 71. Minnesota Statutes 2008, section 326B.83, subdivision 1, is amended to read: 56.1 Subdivision 1. Form. (a) An applicant for a license under sections 326B.802 to 56.2326B.885 must submit an application, under oath and accompanied by the license fee fees 56.3required by section 326B.092, on a form prescribed by the commissioner. 56.4Within 30 business days of receiving all required information, the commissioner must 56.5act on the license request. 56.6(b) If one of the categories in the application does not apply, the applicant must 56.7identify the category and state the reason the category does not apply. The commissioner 56.8may refuse to issue a license if the application is not complete or contains unsatisfactory 56.9information. 56.10 Sec. 72. Minnesota Statutes 2008, section 326B.83, subdivision 3, is amended to read: 56.11 Subd. 3. Examination. (a) Each qualifying person must satisfactorily complete pass 56.12a written examination for the type of license requested. The commissioner may establish 56.13the examination qualifications, including related education experience and education, the 56.14examination procedure, and the examination for each licensing group. The examination 56.15must include at a minimum the following areas: 56.16 (1) appropriate knowledge of technical terms commonly used and the knowledge of 56.17reference materials and code books to be used for technical information; and 56.18 (2) understanding of the general principles of business management and other 56.19pertinent state laws. 56.20 (b) Each examination must be designed for the specified type of license requested. 56.21 (c) An individual's passing examination results expire two years from the 56.22examination date. An individual who passes the examination but does not choose to apply 56.23to act as a qualifying person for a licensee within two years from the examination date, 56.24must, upon application provide: 56.25 (1) passing examination results within two years from the date of application; or 56.26 (2) proof that the person has fulfilled the continuing education requirements in 56.27section in the manner required for a qualifying person of a licensee for each 56.28license period after the expiration of the examination results. 56.29 Sec. 73. Minnesota Statutes 2008, section 326B.83, subdivision 6, is amended to read: 56.30 Subd. 6. License. A nonresident of Minnesota may be licensed as a residential 56.31building contractor, residential remodeler, residential roofer, or manufactured home 56.32installer upon compliance with all the provisions of sections 326B.092 to 326B.098 and 56.33326B.802 to 326B.885. 57.1 Sec. 74. Minnesota Statutes 2009 Supplement, section 326B.86, subdivision 1, is 57.2amended to read: 57.3 Subdivision 1. Bond. (a) Licensed manufactured home installers and licensed 57.4residential roofers must post a biennial surety bond in the name of the licensee with the 57.5commissioner, conditioned that the applicant shall faithfully perform the duties and in 57.6all things comply with all laws, ordinances, and rules pertaining to the license or permit 57.7applied for and all contracts entered into. The biennial bond must be continuous and 57.8maintained for so long as the licensee remains licensed. The aggregate liability of the 57.9surety on the bond to any and all persons, regardless of the number of claims made 57.10against the bond, may not exceed the amount of the bond. The bond may be canceled as 57.11to future liability by the surety upon 30 days' written notice mailed to the commissioner 57.12by regular mail. 57.13 (b) A licensed residential roofer must post a bond of at least $15,000. 57.14 (c) A licensed manufactured home installer must post a bond of at least $2,500. 57.15 Bonds issued under sections 326B.802 to 326B.885 are not state bonds or contracts 57.16for purposes of sections 8.05 and 16C.05, subdivision 2. 57.17 Sec. 75. Minnesota Statutes 2008, section 326B.865, is amended to read: 57.18326B.865 SIGN CONTRACTOR; BOND. 57.19 (a) A sign contractor may post a compliance bond with the commissioner, 57.20conditioned that the sign contractor shall faithfully perform duties and comply with 57.21laws, ordinances, rules, and contracts entered into for the installation of signs. The bond 57.22must be renewed annually biennially and maintained for so long as determined by the 57.23commissioner. The aggregate liability of the surety on the bond to any and all persons, 57.24regardless of the number of claims made against the bond, may not exceed the annual 57.25amount of the bond. The bond may be canceled as to future liability by the surety upon 30 57.26days' written notice mailed to the commissioner by United States mail. 57.27 (b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a 57.28local unit of government that requires sign contractors to post a compliance bond. The 57.29bond is in lieu of any compliance bond required by a local unit of government. 57.30 (c) For purposes of this section, "sign" means a device, structure, fixture, or 57.31placard using graphics, symbols, or written copy that is erected on the premises of an 57.32establishment including the name of the establishment or identifying the merchandise, 57.33services, activities, or entertainment available on the premises. 57.34 Sec. 76. Minnesota Statutes 2008, section 326B.921, subdivision 2, is amended to read: 58.1 Subd. 2. High pressure pipefitting business license. Before obtaining a permit 58.2for high pressure piping work, a person must obtain or utilize a business with a high 58.3pressure piping business license. 58.4 A person must have at all times as a full-time employee at least one individual 58.5holding a contracting high pressure pipefitter competency license. Only full-time 58.6employees who hold contracting high pressure pipefitter licenses are authorized to obtain 58.7high pressure piping permits in the name of the business. The contracting high pressure 58.8pipefitter competency license holder can be the employee of only one high pressure piping 58.9business at a time. An application for a high pressure piping business license shall include 58.10a verified statement that the applicant or licensee has complied with this subdivision. 58.11 To retain its business license without reapplication, a person holding a high pressure 58.12piping business license that ceases to employ an individual holding a contracting high 58.13pressure pipefitter competency license shall have 60 days from the last day of employment 58.14of its previous contracting pipefitter competency license holder to employ another license 58.15holder. The department must be notified no later than five days after the last day of 58.16employment of the previous license holder. 58.17 No high pressure pipefitting work may be performed during any period when the 58.18high pressure pipefitting business does not have a contracting high pressure pipefitter 58.19competency license holder on staff. If a license holder is not employed within 60 days 58.20after the last day of employment of the previous license holder, the pipefitting business 58.21license shall lapse. 58.22 The board shall prescribe by rule procedures for application for and issuance of 58.23business licenses. 58.24 Sec. 77. Minnesota Statutes 2008, section 326B.921, subdivision 4, is amended to read: 58.25 Subd. 4. Registration with commissioner. An unlicensed individual may 58.26register to assist in the practical construction and installation of high pressure piping 58.27and appurtenances while in the employ of a licensed high pressure piping business by 58.28completing and submitting to the commissioner a registration form provided by the 58.29commissioner, with all fees required by section 326B.092. The board may prescribe rules, 58.30not inconsistent with this section, for the registration of unlicensed individuals. 58.31 An unlicensed individual applying for initial registration shall pay the department an 58.32application fee of $50. Applications for initial registration may be submitted at any time. 58.33Registration must be renewed annually and shall be valid for one calendar year beginning 58.34January 1. Applications for renewal registration must be submitted to the commissioner 59.1before December 31 of each registration period on forms provided by the commissioner, 59.2and must be accompanied by a fee of $50. There shall be no refund of fees paid. 59.3 Sec. 78. Minnesota Statutes 2008, section 326B.921, subdivision 7, is amended to read: 59.4 Subd. 7. License fee, registration, and renewal fees. The department shall charge 59.5the following license fees: 59.6 (a) application for journeyman high pressure pipefitter competency license, $120; 59.7 (b) renewal of journeyman high pressure pipefitter competency license, $80; 59.8 (c) application for contracting high pressure pipefitter competency license, $270; 59.9 (d) renewal of contracting high pressure pipefitter competency license, $240; 59.10 (e) application for high pressure piping business license, $450; 59.11 (f) application to inactivate a contracting high pressure pipefitter competency license 59.12or inactivate a journeyman high pressure pipefitter competency license, $40; and 59.13 (g) renewal of an inactive contracting high pressure pipefitter competency license or 59.14inactive journeyman high pressure pipefitter competency license, $40. 59.15 If an application for renewal of an active or inactive journeyman high pressure 59.16pipefitter competency license or active or inactive contracting high pressure pipefitter 59.17competency license is received by the department after the date of expiration of the 59.18license, a $30 late renewal fee shall be added to the license renewal fee. 59.19 Payment must accompany the application for a license or renewal of a license. There 59.20shall be no refund of fees paid. 59.21For purposes of calculating license, registration, and renewal fees required under 59.22section 326B.092: 59.23(1) the registration of an unlicensed individual under subdivision 4 is an entry 59.24level license; 59.25(2) a journeyman high pressure pipefitter license is a journeyman license; 59.26(3) a contracting high pressure pipefitter license is a master license; and 59.27(4) a high pressure piping business license is a business license. 59.28 Sec. 79. Minnesota Statutes 2008, section 326B.922, is amended to read: 59.29326B.922 LICENSE APPLICATION AND RENEWAL. 59.30 (a) Application for a contracting high pressure pipefitter competency or, a 59.31journeyman high pressure pipefitter competency, or a high pressure piping business 59.32license shall be made to the department, with all fees required by section 326B.092. 59.33(b) The applicant for a contracting high pressure pipefitter or a journeyman high 59.34pressure pipefitter license shall be licensed only after passing an examination developed 60.1and administered by the department in accordance with rules adopted by the board. A 60.2competency license issued by the department shall expire on December 31 of each year. A 60.3renewal application must be received by the department within one year after expiration of 60.4the competency license. A license that has been expired for more than one year cannot 60.5be renewed, and can only be reissued if the applicant submits a new application for the 60.6competency license, pays a new application fee, and retakes and passes the applicable 60.7license examination. 60.8(c) All initial contracting high pressure pipefitter licenses, journeyman high pressure 60.9pipefitter licenses, and high pressure piping business licenses are effective for more than 60.10one calendar year and expire on December 31 of the year after the year in which the 60.11application is made. The commissioner shall in a manner determined by the commissioner, 60.12without the need for any rulemaking under chapter 14, phase in the renewal of contracting 60.13high pressure pipefitter, journeyman high pressure pipefitter, and high pressure piping 60.14business licenses from one year to two years. By June 30, 2012, all such licenses shall be 60.15two-year licenses. 60.16 Sec. 80. Minnesota Statutes 2009 Supplement, section 326B.94, subdivision 4, is 60.17amended to read: 60.18 Subd. 4. Examinations, licensing. Every individual that operates a boat must 60.19hold a current master's license issued by the commissioner, unless the individual holds 60.20a valid, current charter boat captain's license issued by the United States Coast Guard. 60.21The commissioner shall develop and administer an examination for all masters of boats 60.22carrying passengers for hire on the inland waters of the state as to their qualifications and 60.23fitness. If found qualified and competent to perform their duties as a master of a boat 60.24carrying passengers for hire, they shall be issued a license authorizing them to act as such 60.25on the inland waters of the state. All initial master's licenses shall be for two years. The 60.26commissioner shall in a manner determined by the commissioner, without the need for 60.27any rulemaking under chapter 14, phase in the renewal of master's licenses from one year 60.28to two years. By June 30, 2011, all renewed master's licenses shall be two-year licenses. 60.29Fees for the original issue and renewal of the license authorized under this section shall 60.30be pursuant to section 326B.986, subdivision 2 326B.092. 60.31 Sec. 81. Minnesota Statutes 2008, section 326B.978, subdivision 2, is amended to read: 60.32 Subd. 2. Applications. Any individual who desires an engineer's license shall 60.33submit an application on a written or electronic form prescribed by the commissioner, at 60.34least 15 days before the requested exam date. If the commissioner approves the applicant 61.1for examination, the applicant may take the examination on one occasion within one 61.2year from the date the commissioner receives the application with all fees required by 61.3section 326B.092. 61.4 Sec. 82. Minnesota Statutes 2008, section 326B.978, is amended by adding a 61.5subdivision to read: 61.6 Subd. 19. Applicability. This section shall not apply to traction or hobby boiler 61.7engineer's licenses or provisional licenses. 61.8 Sec. 83. Minnesota Statutes 2009 Supplement, section 326B.986, subdivision 5, 61.9is amended to read: 61.10 Subd. 5. Boiler engineer license fees. (a) For the following licenses, the 61.11nonrefundable license and application fee is: 61.12(1) chief engineer's license, $70; 61.13(2) first class engineer's license, $70; 61.14(3) second class engineer's license, $70; 61.15(4) special engineer's license, $40; 61.16(5) traction or hobby boiler engineer's license, $50; and 61.17(6) provisional license, $50. 61.18 (b) An engineer's license, except a provisional license, may be renewed upon 61.19application and payment of a renewal fee of $20 for one year or $40 for two years. If 61.20the renewal fee is paid later than 30 days after expiration, then a late fee of $15 will be 61.21added to the renewal fee. 61.22(a) For purposes of calculating license fees and renewal license fees required under 61.23section 326B.092: 61.24(1) the boiler special engineer license is an entry level license; 61.25(2) the following licenses are journeyman licenses: first class engineer, Grade A; 61.26first class engineer, Grade B; first class engineer, Grade C; second class engineer, Grade 61.27A; second class engineer, Grade B; second class engineer, Grade C; and provisional 61.28license; and 61.29(3) the following licenses are master licenses: boiler chief engineer, Grade A; boiler 61.30chief engineer, Grade B; boiler chief engineer, Grade C; boiler commissioner inspector; or 61.31traction or hobby boiler engineer. 61.32(b) Notwithstanding section 326B.092, subdivision 7, paragraph (a), the license 61.33duration for steam traction and hobby engineer licenses are one year only for the purpose 61.34of calculating license fees under section 326B.092, subdivision 7, paragraph (b). 62.1 Sec. 84. Minnesota Statutes 2008, section 327.31, subdivision 17, is amended to read: 62.2 Subd. 17. Installation. "Installation" of a manufactured home means assembly 62.3installation or reinstallation, at the site of occupancy, of all portions of a manufactured 62.4home, connection of the manufactured home to existing utility connections and installation 62.5of support and/or anchoring systems. 62.6 Sec. 85. Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision 62.7to read: 62.8 Subd. 21. Used manufactured home. "Used manufactured home" means a home 62.9being offered for sale not less than 24 months after the first purchaser took legal ownership 62.10or possession of the home. 62.11 Sec. 86. Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision 62.12to read: 62.13 Subd. 22. Seller. "Seller" means either the homeowner, manufactured home retailer 62.14or dealer, broker, or limited dealer or retailer. 62.15 Sec. 87. Minnesota Statutes 2008, section 327.32, subdivision 1, is amended to read: 62.16 Subdivision 1. Requirement; new manufactured homes. No person shall sell, 62.17or offer for sale, in this state, any new manufactured home manufactured after July 1, 62.181972, or manufacture any manufactured home in this state or install for occupancy any 62.19manufactured home manufactured after July 1, 1972, in any manufactured home park in 62.20this state unless the manufactured home complies with the Manufactured Home Building 62.21Code and: bears a label as required by the secretary. 62.22 (a) bears a seal issued by the commissioner, and is, whenever possible, accompanied 62.23by a certificate by the manufacturer or dealer, both evidencing that it complies with the 62.24Manufactured Home Building Code; or 62.25 (b) if manufactured after June 14, 1976, bears a label as required by the secretary. 62.26 Sec. 88. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 62.27to read: 62.28 Subd. 1a. Requirement; used manufactured homes. No person shall sell or 62.29offer for sale in this state any used manufactured home manufactured after June 14, 62.301976, or install for occupancy any used manufactured home manufactured after June 62.3114, 1976, unless the used manufactured home complies with the Notice of Compliance 62.32Form as provided in this subdivision. If manufactured after June 14, 1976, the home 63.1must bear a label as required by the secretary. The Notice of Compliance Form shall be 63.2signed by the seller and purchaser indicating which party is responsible for either making 63.3or paying for any necessary corrections prior to the sale and transferring ownership of 63.4the manufactured home. 63.5The Notice of Compliance Form shall be substantially in the following form: 63.6"Notice of Compliance Form as required in Minnesota Statutes, 63.7section 327.32, subdivision 1. 63.8This notice must be completed and signed by the purchaser(s) and the seller(s) of the 63.9used manufactured home described in the purchase agreement and on the bottom of this 63.10notice before the parties transfer ownership of a used manufactured home constructed 63.11after June 14, 1976. 63.12Electric ranges and clothes dryers must have required four-conductor cords and plugs. 63.13 Complies ..........Correction required .......... 63.14 Initialed by Responsible Party: Buyer ..........Seller ..........

63.15Solid fuel-burning fireplaces or stoves must be listed for use in manufactured homes, Code 63.16of Federal Regulations, title 24, section 3280.709(g), and installed correctly in accordance 63.17with their listing or standards (i.e., chimney, doors, hearth, combustion, or intake, etc., 63.18Code of Federal Regulations, title 24, section 3280.709(g)). 63.19 Complies ..........Correction required .......... 63.20 Initialed by Responsible Party: Buyer ..........Seller ..........

63.21Gas water heaters and furnaces must be listed for manufactured home use, Code of Federal 63.22Regulations, title 24, section 3280.709(a) and (d)(1) and (2), and installed correctly, in 63.23accordance with their listing or standards. 63.24 Complies ..........Correction required .......... 63.25 Initialed by Responsible Party: Buyer ..........Seller ..........

63.26Smoke alarms are required to be installed and operational in accordance with Code of 63.27Federal Regulations, title 24, section 3280.208. 63.28 Complies ..........Correction required .......... 63.29 Initialed by Responsible Party: Buyer ..........Seller ..........

63.30Carbon monoxide alarms or CO detectors that are approved and operational are required 63.31to be installed within ten feet of each room lawfully used for sleeping purposes. 63.32 Complies ..........Correction required .......... 63.33 Initialed by Responsible Party: Buyer ..........Seller ..........

64.1Egress windows are required in every bedroom with at least one operable window with 64.2a net clear opening of 20 inches wide and 24 inches high, five square feet in area, with 64.3the bottom of windows opening no more than 36 inches above the floor. Locks, latches, 64.4operating handles, tabs, or other operational devices shall not be located more than 54 64.5inches above the finished floor. 64.6 Complies ..........Correction required .......... 64.7 Initialed by Responsible Party: Buyer ..........Seller ..........

64.8The furnace compartment of the home is required to have interior finish with a flame 64.9spread rating not exceeding 25 feet, as specified in the 1976 United States Department of 64.10Housing and Urban Development Code governing manufactured housing construction. 64.11 Complies ..........Correction required .......... 64.12 Initialed by Responsible Party: Buyer ..........Seller ..........

64.13The water heater enclosure in this home is required to have interior finish with a flame 64.14spread rating not exceeding 25 feet, as specified in the 1976 United States Department of 64.15Housing and Urban Development Code governing manufactured housing construction. 64.16 Complies ..........Correction required .......... 64.17 Initialed by Responsible Party: Buyer ..........Seller ..........

64.18The home complies with the snowload and heat zone requirements for the state of 64.19Minnesota as indicated by the data plate. 64.20 Complies ..........Correction required .......... 64.21 Initialed by Responsible Party: Buyer ..........Seller ..........

64.22The parties to this agreement have initialed all required sections and agree by their 64.23signature to complete any necessary corrections prior to the sale or transfer of ownership 64.24of the home described below as listed in the purchase agreement. The state of Minnesota 64.25or a local building official has the authority to inspect the home in the manner described in 64.26Minnesota Statutes, section 327.33, prior to or after the sale to ensure compliance was 64.27properly executed as provided under the Manufactured Home Building Code. 64.28 Signature of Purchaser(s) of Home 64.29 ..............................date............................................................date.............................. 64.30 ...................................................................................................................................... 64.31 64.32 Print name as appears on purchase agreementPrint name as appears on purchase agreement 64.33 Signature of Seller(s) of Home 64.34 ..............................date............................................................date.............................. 64.35 ...................................................................................................................................... 64.36 Print name and license number, if applicablePrint name and license number, if applicable 65.1 (Street address of home at time of sale) 65.2 ................................................................................................................................ 65.3 (City/State/Zip)....................................................................................................... 65.4 Name of manufacturer of home............................................................................ 65.5 Model and Year..................................................................................................... 65.6 Serial Number........................................................................................................"

65.7 Sec. 89. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 65.8to read: 65.9 Subd. 1b. Alternative design plan. An alternative frost-free design slab that is 65.10submitted to the department, stamped by a licensed professional engineer or architect, 65.11and is in compliance with either the federal installation standards in effect at the date of 65.12manufacture or the Minnesota State Building Code, when applicable, shall be issued a 65.13permit by the department within ten days. 65.14 Sec. 90. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 65.15to read: 65.16 Subd. 1c. Manufacturer's installation instructions; new home. All new 65.17single-section manufactured homes and new multisection manufactured homes shall be 65.18installed in compliance with either the manufacturer's installation instructions in effect at 65.19the date of manufacture or, when applicable, the Minnesota State Building Code. 65.20 Sec. 91. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 65.21to read: 65.22 Subd. 1d. Manufacturer's installation instructions; used multisection homes. 65.23All used multisection manufactured homes shall be installed in compliance with the 65.24manufacturer's installation instructions in effect at the date of manufacture, approved 65.25addenda or, when applicable, the Minnesota State Building Code. 65.26 Sec. 92. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 65.27to read: 65.28 Subd. 1e. Reinstallation requirements for single-section used manufactured 65.29homes. (a) All single-section used manufactured homes reinstalled less than 24 months 65.30from the date of installation by the first purchaser must be reinstalled in compliance with 65.31subdivision 1c. All single-section used manufactured homes reinstalled more than 24 65.32months from the date of installation by the first purchaser may be reinstalled without 65.33a frost-protected foundation if the home is reinstalled in compliance with Minnesota 66.1Rules, chapter 1350, for above frost-line installations and the notice requirement of 66.2subdivision 1f is complied with by the seller and the purchaser of the single-section used 66.3manufactured home. 66.4(b) The installer shall affix an installation seal issued by the department to the 66.5outside of the home as required by the Minnesota State Building Code. The certificate 66.6of installation issued by the installer of record shall clearly state that the home has been 66.7reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and 66.8for issuance of reinstallation seals shall follow the requirements of sections 326B.802 66.9to 326B.885. Fees for review of plans, specifications, and on-site inspections shall be 66.10those as specified in section 326B.153, subdivision 1, paragraph (c). Whenever an 66.11installation certificate for an above frost-line installation is issued to a single-section used 66.12manufactured home being listed for sale, the purchase agreement must disclose that the 66.13home is installed on a nonfrost-protected foundation and recommend that the purchaser 66.14have the home inspected to determine the effects of frost on the home. 66.15 Sec. 93. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 66.16to read: 66.17 Subd. 1f. Notice requirement. The seller of the single-section used manufactured 66.18home being reinstalled under subdivision 1e shall provide the following notice to the 66.19purchaser and secure signatures of all parties to the purchase agreement on or before 66.20signing a purchase agreement prior to submitting an application for an installation 66.21certificate. Whenever a current owner of a manufactured home reinstalls the manufactured 66.22home under subdivision 1e, the current owner is not required to comply with the notice 66.23requirement under this subdivision. The notice shall be in at least 14-point font, except the 66.24heading, "WHICH MAY VOID WARRANTY," must be in capital letters, in 20-point font. 66.25The notice must be printed on a separate sheet of paper in a color different than the paper 66.26on which the purchase agreement is printed. The notice becomes a part of the purchase 66.27agreement and shall be substantially in the following form: 66.28"Notice of Reinstalling of a Single-Section Used Manufactured 66.29Home Above Frost-Line; 66.30WHICH MAY VOID WARRANTY 66.31It is recommended that the single-section used manufactured home being reinstalled 66.32follow the instructions in the manufacturer's installation manual. By signing this notice, 66.33the purchaser(s) are acknowledging they have elected to use footings placed above the 66.34local frost line in accordance with the Minnesota State Building Code. 67.1The seller has explained the differences between the manufacturer's installation 67.2instructions and the installation system selected by the purchaser(s) with respect to 67.3possible effects of frost on the manufactured home. 67.4The purchaser(s) acknowledge by signing this notice that there is no manufacturer's 67.5original warranty remaining on the home and recognize that any other extended or ancillary 67.6warranty could be adversely affected if any applicable warranty stipulates that the home 67.7be installed in accordance with the manufacturer's installation manual to remain effective. 67.8After the reinstallation of the manufactured home, it is highly recommended that the 67.9purchaser(s) have a licensed manufactured home installer recheck the home's installation 67.10for any releveling needs or anchoring system adjustments each freeze-thaw cycle. 67.11The purchaser(s) of the used manufactured home described below that is being reinstalled 67.12acknowledge they have read this notice and have been advised to contact the manufacturer 67.13of the home and/or the Department of Labor and Industry if they desire additional 67.14information before signing this notice. It is the intent of this notice to inform the 67.15purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system 67.16for the reinstallation of the manufactured home as originally required by the home's 67.17installation manual. 67.18Plain language notice. 67.19I understand that because this home will be installed with footings placed above the 67.20local frost line, this home may be subject to adverse effects from frost heave that may 67.21damage this home. Purchaser(s) initials: ....... 67.22I understand that the installation of this home with footings placed above the local 67.23frost line could affect my ability to obtain a mortgage or mortgage insurance on this 67.24home. Purchaser(s) initials: ....... 67.25I understand that the installation of this home with footings placed above the local 67.26frost line could void my warranty on the home if any warranty is still in place on this 67.27home. Purchaser(s) initials: ....... 67.28 Signature of Purchaser(s) 67.29 ..............................date............................................................date.............................. 67.30 ...................................................................................................................................... 67.31 Print namePrint name 67.32 67.33 (Street address of location where manufactured home is being reinstalled) 67.34 .............................................................................................................................. 67.35 (City/State/Zip).................................................................................................... 67.36 Name of manufacturer of home......................................................................... 68.1 Model and year................................................................................................... 68.2 Serial number.....................................................................................................

68.3Name of licensed installer and license number or homeowner responsible for the 68.4installation of the home as described above. 68.5 Installer name:................................................................................................... 68.6 License number:................................................................................................"

68.7 Sec. 94. Minnesota Statutes 2008, section 327.34, subdivision 1, is amended to read: 68.8 Subdivision 1. Generally. It shall be a misdemeanor for any person, 68.9(a) to sell, lease, or offer to sell or lease, any manufactured home manufactured 68.10after July 1, 1972 June 14, 1976, which does not comply with the Manufactured Home 68.11Building Code or which does not bear a seal or label as required by sections 327.31 to 68.12327.34 , unless the action is subject to the provisions of section 327.35; 68.13(b) to affix a seal or label, or cause a seal or label to be affixed, to any manufactured 68.14home which does not comply with the Manufactured Home Building Code unless the 68.15action is subject to the provisions of section 327.35; 68.16(c) to alter a manufactured home manufactured after July 1, 1972 June 14, 1976, 68.17in a manner prohibited by sections 327.31 to 327.34; or 68.18(d) to fail to correct a Manufactured Home Building Code violation in a 68.19manufactured home manufactured after July 1, 1972 June 14, 1976, which is owned, 68.20manufactured, or sold by that person, within 40 days of being ordered to do so in writing 68.21by an authorized representative of the commissioner, unless the correction is subject to the 68.22provisions of section 327.35; or. 68.23(e) to interfere with, obstruct, or hinder any authorized representative of the 68.24commissioner in the performance of duties relating to manufactured homes manufactured 68.25after July 1, 1972, and prior to June 15, 1976. 68.26 Sec. 95. Minnesota Statutes 2008, section 327B.04, subdivision 2, is amended to read: 68.27 Subd. 2. Subagency licenses. Any dealer who has a place of business at more than 68.28one location shall designate one location as its principal place of business, one name as its 68.29principal name, and all other established places of business as subagencies. A subagency 68.30license shall be required for each subagency. Subagency license renewal must coincide 68.31with the principal license date. No dealer shall do business as a dealer under any other 68.32name than the name on its license. 69.1 Sec. 96. Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 7, is 69.2amended to read: 69.3 Subd. 7. Licenses; when granted renewal. In addition to the requirements of this 69.4section, each application for a license or license renewal must be accompanied by a fee in 69.5an amount established by subdivision 7a all applicable fees required by section 326B.092. 69.6The fees shall be set in an amount which over the fiscal biennium will produce revenues 69.7approximately equal to the expenses which the commissioner expects to incur during that 69.8fiscal biennium while administering and enforcing sections 327B.01 to 327B.12. The 69.9commissioner shall grant or deny a license application or a renewal application within 60 69.10days of its filing. If the license is granted, the commissioner shall license the applicant as a 69.11dealer or manufacturer for the remainder of the licensure period. Upon application by the 69.12licensee, the commissioner shall renew the license for a two-year period, if: 69.13 (1) the renewal application satisfies the requirements of subdivisions 3 and 4; 69.14 (2) the renewal applicant has made all listings, registrations, notices and reports 69.15required by the commissioner during the preceding licensure period; and 69.16 (3) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to 69.17327B.12 and all taxes, arrearages, and penalties owed to the state. 69.18 Sec. 97. Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 7a, 69.19is amended to read: 69.20 Subd. 7a. Fees. (a) Fees for licenses issued pursuant to this section are as follows: 69.21shall be calculated pursuant to section 326B.092. 69.22(1) initial dealer license for principal location, $400. Fee is not refundable; 69.23(2) initial dealer license for subagency location, $80; 69.24(3) dealer license biennial renewal, principal location, $400; dealer subagency 69.25location biennial renewal, $160. Subagency license renewal must coincide with the 69.26principal license date; 69.27(4) initial limited dealer license, $200; 69.28(5) change of bonding company, $10; 69.29(6) reinstatement of bond after cancellation notice has been received, $10; 69.30(7) checks returned without payment, $15; and 69.31(8) change of address, $10. 69.32(b) All initial limited dealer licenses shall be effective for more than one calendar 69.33year and shall expire on December 31 of the year after the year in which the application 69.34is made. 70.1(c) The license fee for each renewed limited dealer license shall be $100 for one year 70.2and $200 for two years. For the purposes of calculating fees under section 326B.092, any 70.3license issued under this section is a business license, except that a subagency license is a 70.4master license. The commissioner shall in a manner determined by the commissioner, 70.5without the need for any rulemaking under chapter 14, phase in the renewal of limited 70.6dealer licenses from one year to two years. By June 30, 2011, all renewed limited dealer 70.7licenses shall be two-year licenses. 70.8(d) All fees are not refundable. 70.9 Sec. 98. Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 8, is 70.10amended to read: 70.11 Subd. 8. Limited dealer's license. The commissioner shall issue a limited dealer's 70.12license to an owner of a manufactured home park authorizing the licensee as principal 70.13only to engage in the sale, offering for sale, soliciting, or advertising the sale of used 70.14manufactured homes located in the owned manufactured home park. The licensee must be 70.15the title holder of the homes and may engage in no more than ten sales during each year of 70.16the two-year licensure period. An owner may, upon payment of the applicable fee and 70.17compliance with this subdivision, obtain a separate license for each owned manufactured 70.18home park and is entitled to sell up to 20 homes per license period provided that only one 70.19limited dealer license may be issued for each park. The license shall be issued after: 70.20 (1) receipt of an application on forms provided by the commissioner containing 70.21the following information: 70.22 (i) the identity of the applicant; 70.23 (ii) the name under which the applicant will be licensed and do business in this state; 70.24 (iii) the name and address of the owned manufactured home park, including a copy 70.25of the park license, serving as the basis for the issuance of the license; 70.26 (iv) the name, home, and business address of the applicant; 70.27 (v) the name, address, and telephone number of one individual that is designated 70.28by the applicant to receive all communications and cooperate with all inspections and 70.29investigations of the commissioner pertaining to the sale of manufactured homes in the 70.30manufactured home park owned by the applicant; 70.31 (vi) whether the applicant or its designated individual has been convicted of a crime 70.32within the previous ten years that is either related directly to the business for which the 70.33license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a 70.34judgment in a civil action involving fraud, misrepresentation, or conversion within the 70.35previous five years or has had any government license or permit suspended or revoked 71.1as a result of an action brought by a federal or state governmental agency in this or any 71.2other state within the last five years; and 71.3 (vii) the applicant's qualifications and business history, including whether the 71.4applicant or its designated individual has ever been adjudged bankrupt or insolvent, or has 71.5any unsatisfied court judgments outstanding against it or them; 71.6 (2) payment of the license fee established by subdivision 7a; and 71.7 (3) provision of a surety bond in the amount of $5,000. A separate surety bond 71.8must be provided for each limited license. 71.9 The applicant need not comply with section 327B.04, subdivision 4, paragraph (e). 71.10The holding of a limited dealer's license does not satisfy the requirement contained in 71.11section 327B.04, subdivision 4, paragraph (e), for the licensee or salespersons with respect 71.12to obtaining a dealer license. The commissioner may, upon application for a renewal of a 71.13license, require only a verification that copies of sales documents have been retained and 71.14payment of the renewal fee fees established by subdivision 7a section 326B.092. "Sales 71.15documents" mean only the safety feature disclosure form defined in section 327C.07, 71.16subdivision 3a , title of the home, financing agreements, and purchase agreements. 71.17 The license holder shall, upon request of the commissioner, make available for 71.18inspection during business hours sales documents required to be retained under this 71.19subdivision. 71.20 Sec. 99. Minnesota Statutes 2009 Supplement, section 327B.041, is amended to read: 71.21327B.041 MANUFACTURED HOME INSTALLERS. 71.22 (a) Manufactured home installers are subject to all of the fees in section 326B.092 71.23and the requirements of sections 326B.802 to 326B.885, except for the following: 71.24 (1) manufactured home installers are not subject to the continuing education 71.25requirements of section 326B.821, but are subject to the continuing education requirements 71.26established in rules adopted under section 327B.10; 71.27 (2) the examination requirement of section 326B.83, subdivision 3, for manufactured 71.28home installers shall be satisfied by successful completion of a written examination 71.29administered and developed specifically for the examination of manufactured home 71.30installers. The examination must be administered and developed by the commissioner. The 71.31commissioner and the state building official shall seek advice on the grading, monitoring, 71.32and updating of examinations from the Minnesota Manufactured Housing Association; 71.33 (3) a local government unit may not place a surcharge on a license fee, and may not 71.34charge a separate fee to installers; 72.1 (4) a dealer or distributor who does not install or repair manufactured homes is 72.2exempt from licensure under sections 326B.802 to 326B.885; 72.3 (5) the exemption under section 326B.805, subdivision 6, clause (5), does not 72.4apply; and 72.5 (6) manufactured home installers are not subject to the contractor recovery fund 72.6in section 326B.89. 72.7 (b) The commissioner may waive all or part of the requirements for licensure 72.8as a manufactured home installer for any individual who holds an unexpired license or 72.9certificate issued by any other state or other United States jurisdiction if the licensing 72.10requirements of that jurisdiction meet or exceed the corresponding licensing requirements 72.11of the department and the individual complies with section 326B.092, subdivisions 1 72.12and 3 to 7. For the purposes of calculating fees under section 326B.092, licensure as a 72.13manufactured home installer is a business license. 72.14 Sec. 100. Minnesota Statutes 2008, section 471.59, subdivision 10, is amended to read: 72.15 Subd. 10. Services performed by governmental units; commonality of powers. 72.16Notwithstanding the provisions of subdivision 1 requiring commonality of powers 72.17between parties to any agreement, the governing body of any governmental unit as 72.18defined in subdivision 1 may enter into agreements with any other governmental unit 72.19to perform on behalf of that unit any service or function which the governmental unit 72.20providing the service or function is authorized to provide for itself. If the agreement 72.21has the effect of eliminating or replacing a public employee who is part of a collective 72.22bargaining agreement represented by an exclusive representative, and there is no provision 72.23in the collective bargaining agreement detailing the effect of the action on the affected 72.24public employee, negotiations on the effects to the employee of the job elimination or 72.25restructuring must be conducted between the exclusive representative and the employer. 72.26 Sec. 101. Laws 2009, chapter 78, article 1, section 3, subdivision 2, is amended to read: 72.27 72.28 Subd. 2.Business and Community Development 8,980,000 8,980,000 8,873,000

72.29 Appropriations by Fund 72.30 72.31 General 7,941,000 7,941,000 7,834,000 72.32 Remediation 700,000 700,000 72.33 72.34 Workforce Development 339,000 339,000

73.1(a) $700,000 the first year and $700,000 the 73.2second year are from the remediation fund for 73.3contaminated site cleanup and development 73.4grants under Minnesota Statutes, section 73.5116J.554 . This appropriation is available 73.6until expended. 73.7(b) $200,000 each year is from the general 73.8fund for a grant to WomenVenture for 73.9women's business development programs 73.10and for programs that encourage and assist 73.11women to enter nontraditional careers in the 73.12trades; manual and technical occupations; 73.13science, technology, engineering, and 73.14mathematics-related occupations; and green 73.15jobs. This appropriation may be matched 73.16dollar for dollar with any resources available 73.17from the federal government for these 73.18purposes with priority given to initiatives 73.19that have a goal of increasing by at least ten 73.20percent the number of women in occupations 73.21where women currently comprise less than 25 73.22percent of the workforce. The appropriation 73.23is available until expended. 73.24(c) $105,000 each year is from the general 73.25fund and $50,000 each year is from the 73.26workforce development fund for a grant to 73.27the Metropolitan Economic Development 73.28Association for continuing minority business 73.29development programs in the metropolitan 73.30area. This appropriation must be used for the 73.31sole purpose of providing free or reduced 73.32fee business consulting services to minority 73.33entrepreneurs and contractors. 73.34(d)(1) $500,000 each year is from the 73.35general fund for a grant to BioBusiness 74.1Alliance of Minnesota for bioscience 74.2business development programs to promote 74.3and position the state as a global leader 74.4in bioscience business activities. This 74.5appropriation is added to the department's 74.6base. These funds may be used to create, 74.7recruit, retain, and expand biobusiness 74.8activity in Minnesota; implement the 74.9destination 2025 statewide plan; update 74.10a statewide assessment of the bioscience 74.11industry and the competitive position of 74.12Minnesota-based bioscience businesses 74.13relative to other states and other nations; 74.14and develop and implement business and 74.15scenario-planning models to create, recruit, 74.16retain, and expand biobusiness activity in 74.17Minnesota. 74.18(2) The BioBusiness Alliance must report 74.19each year by February 15 to the committees 74.20of the house of representatives and the senate 74.21having jurisdiction over bioscience industry 74.22activity in Minnesota on the use of funds; 74.23the number of bioscience businesses and 74.24jobs created, recruited, retained, or expanded 74.25in the state since the last reporting period; 74.26the competitive position of the biobusiness 74.27industry; and utilization rates and results of 74.28the business and scenario-planning models 74.29and outcomes resulting from utilization of 74.30the business and scenario-planning models. 74.31(e)(1) Of the money available in the 74.32Minnesota Investment Fund, Minnesota 74.33Statutes, section 116J.8731, to the 74.34commissioner of the Department of 74.35Employment and Economic Development, 74.36up to $3,000,000 is appropriated in fiscal year 75.12010 for a loan to an aircraft manufacturing 75.2and assembly company, associated with the 75.3aerospace industry, for equipment utilized 75.4to establish an aircraft completion center 75.5at the Minneapolis-St. Paul International 75.6Airport. The finishing center must use the 75.7state's vocational training programs designed 75.8specifically for aircraft maintenance training, 75.9and to the extent possible, work to recruit 75.10employees from these programs. The center 75.11must create at least 200 new manufacturing 75.12jobs within 24 months of receiving the 75.13loan, and create not less than 500 new 75.14manufacturing jobs over a five-year period 75.15in Minnesota. 75.16(2) This loan is not subject to loan limitations 75.17under Minnesota Statutes, section 116J.8731, 75.18subdivision 5 . Any match requirements 75.19under Minnesota Statutes, section 116J.8731, 75.20subdivision 3 , may be made from current 75.21resources. This is a onetime appropriation 75.22and is effective the day following final 75.23enactment. 75.24(f) $65,000 each year is from the general 75.25fund for a grant to the Minnesota Inventors 75.26Congress, of which at least $6,500 must be 75.27used for youth inventors. 75.28(g) $200,000 the first year and $200,000 the 75.29second year are for the Office of Science and 75.30Technology. This is a onetime appropriation. 75.31(h) $500,000 the first year and $500,000 the 75.32second year are for a grant to Enterprise 75.33Minnesota, Inc., for the small business 75.34growth acceleration program under 75.35Minnesota Statutes, section 116O.115. This 76.1is a onetime appropriation and is available 76.2until expended. 76.3(i)(1) $100,000 each year is from the 76.4workforce development fund for a grant 76.5under Minnesota Statutes, section 116J.421, 76.6to the Rural Policy and Development 76.7Center at St. Peter, Minnesota. The grant 76.8shall be used for research and policy 76.9analysis on emerging economic and social 76.10issues in rural Minnesota, to serve as a 76.11policy resource center for rural Minnesota 76.12communities, to encourage collaboration 76.13across higher education institutions, to 76.14provide interdisciplinary team approaches 76.15to research and problem-solving in rural 76.16communities, and to administer overall 76.17operations of the center. 76.18(2) The grant shall be provided upon the 76.19condition that each state-appropriated 76.20dollar be matched with a nonstate dollar. 76.21Acceptable matching funds are nonstate 76.22contributions that the center has received and 76.23have not been used to match previous state 76.24grants. Any funds not spent the first year are 76.25available the second year. 76.26(j) Notwithstanding Minnesota Statutes, 76.27section 268.18, subdivision 2, $414,000 of 76.28funds collected for unemployment insurance 76.29administration under this subdivision is 76.30appropriated as follows: $250,000 to Lake 76.31County for ice storm damage; $64,000 is for 76.32the city of Green Isle for reimbursement of 76.33fire relief efforts and other expenses incurred 76.34as a result of the fire in the city of Green Isle; 76.35and $100,000 is to develop the construction 77.1mitigation pilot program to make grants for 77.2up to five projects statewide available to local 77.3government units to mitigate the impacts of 77.4transportation construction on local small 77.5business. These are onetime appropriations 77.6and are available until expended. 77.7(k) Up to $10,000,000 is appropriated from 77.8the Minnesota minerals 21st century fund to 77.9the commissioner of Iron Range resources 77.10and rehabilitation to make a grant grants or 77.11forgivable loan to a manufacturer loans to 77.12manufacturers of windmill blades at a facility, 77.13other renewable energy manufacturing, or 77.14biomass products at facilities to be located 77.15within the taconite tax relief area defined 77.16in Minnesota Statutes, section 273.134. No 77.17match is required for the renewable energy 77.18manufacturing or biomass projects. 77.19(l) $1,000,000 is appropriated from the 77.20Minnesota minerals 21st century fund to 77.21the Board of Trustees of the Minnesota 77.22State Colleges and Universities for a grant 77.23to the Northeast Higher Education District 77.24for planning, design, and construction of 77.25classrooms and housing facilities for upper 77.26division students in the engineering program. 77.27(m)(1) $189,000 each year is appropriated 77.28from the workforce development fund for 77.29grants of $63,000 to eligible organizations 77.30each year to assist in the development of 77.31entrepreneurs and small businesses. Each 77.32state grant dollar must be matched with $1 77.33of nonstate funds. Any balance in the first 77.34year does not cancel but is available in the 77.35second year. 78.1(2) Three grants must be awarded to 78.2continue or to develop a program. One 78.3grant must be awarded to the Riverbend 78.4Center for Entrepreneurial Facilitation 78.5in Blue Earth County, and two to other 78.6organizations serving Faribault and Martin 78.7Counties. Grant recipients must report to the 78.8commissioner by February 1 of each year 78.9that the organization receives a grant with the 78.10number of customers served; the number of 78.11businesses started, stabilized, or expanded; 78.12the number of jobs created and retained; and 78.13business success rates. The commissioner 78.14must report to the house of representatives 78.15and senate committees with jurisdiction 78.16over economic development finance on the 78.17effectiveness of these programs for assisting 78.18in the development of entrepreneurs and 78.19small businesses. 78.20 Sec. 102. CUSTOMER SERVICE. 78.21The commissioner must assign at least one full-time equivalent unemployment 78.22insurance customer service staff person to each workforce center to assist applicants in 78.23applying for benefits, accessing resource room resources, searching for jobs, accessing 78.24training and other services available to unemployed workers, and answer questions about 78.25unemployment benefits, options, and appeals. 78.26 Sec. 103. WORKFORCE SERVICES REPORT AND RECOMMENDATIONS. 78.27By January 15, 2011, the governor's Workforce Development Council executive 78.28committee shall submit a report to the senate and house of representatives committees 78.29with jurisdiction over workforce development programs on the performance and outcomes 78.30of the workforce centers, as required by Minnesota Statutes, section 116L.665, subdivision 78.314. This report must contain recommendations for an ongoing process to identify local gaps 78.32in workforce services and ways to fill the gaps. The Department of Employment and 78.33Economic Development and the workforce councils should be included in the process 78.34for identifying service gaps. The governor's Workforce Development Council executive 79.1committee must submit draft-guiding principles to the legislature for review and feedback 79.2by August 12, 2010. 79.3 Sec. 104. DEPARTMENT OF EMPLOYMENT AND ECONOMIC 79.4DEVELOPMENT BLOCK GRANT REPORT. 79.5The commissioner of employment and economic development shall study and 79.6report to the chairs and ranking minority members of the house of representatives and 79.7senate committees having jurisdiction over economic development and workforce issues 79.8on the use of block grant funding to be administered by the Workforce Development 79.9Division and the Business and Community Development Division. The report must 79.10include recommendations for the use of block grant funding including goals, grant award 79.11criteria, RFP procedures, priorities for target populations and the services to be provided, 79.12and inclusion of all pass-through grants administered by the department including those 79.13receiving direct state appropriations. The recommendations must contain specific 79.14proposals on providing grant oversight, evaluation, and administration of allocated funds 79.15in order to maximize services to target populations. 79.16 Sec. 105. STUDY OF DIVISION OF GENERAL FUND REVENUE ACCOUNT. 79.17(a) The Carlson School of Management at the University of Minnesota is requested 79.18to study: 79.19(1) the feasibility of dividing the state's general fund revenue account among 79.20community financial institutions in order to ensure that state money benefits Minnesota 79.21residents; and 79.22(2) the potential economic benefit to municipalities from an increase in their use of 79.23community financial institutions as defined in clause (1). 79.24(b) The results of the study must be reported to the legislature by December 1, 2010. 79.25For purposes of this section, "community financial institution" means a federally 79.26insured bank or credit union, chartered as a bank or credit union by the state of 79.27Minnesota or the United States, that is headquartered in Minnesota and has no more than 79.28$2,500,000,000 in assets. 79.29 Sec. 106. APPROPRIATION. 79.30$107,000 is appropriated from the general fund in fiscal year 2011 to the Minnesota 79.31Science and Technology Authority for the purposes of Minnesota Statutes, chapter 116W. 79.32 Sec. 107. REVISOR'S INSTRUCTION. 80.1In Minnesota Rules, the revisor of statutes shall change all references to Minnesota 80.2Rules, part 1350.8300, to Minnesota Statutes, section 327B.04. 80.3 Sec. 108. REPEALER. 80.4(a) Minnesota Statutes 2008, sections 326B.133, subdivisions 9 and 10; 326B.37, 80.5subdivision 13; 326B.475, subdivisions 5 and 6; 326B.56, subdivision 3; 326B.885, 80.6subdivisions 3 and 4; 326B.976; 327.32, subdivision 4; and 327C.07, subdivisions 3a 80.7and 8, are repealed. 80.8(b) Minnesota Statutes 2009 Supplement, section 326B.56, subdivision 4, is repealed. 80.9(c) Minnesota Rules, parts 1301.0500; 1301.0900; 1301.1100, subparts 2, 3, and 4; 80.101350.7200, subpart 3; and 1350.8000, subpart 2, are repealed. 80.11(d) Minnesota Statutes 2008, section 116J.657, is repealed. 80.12EFFECTIVE DATE.Paragraphs (a) to (c) are effective January 1, 2012, except 80.13that the repeal of Minnesota Statutes, sections 327.32, subdivision 4, and 327C.07, 80.14subdivisions 3a and 8, are effective August 1, 2010. Paragraph (d) is effective July 1, 2010. 80.15 Sec. 109. EFFECTIVE DATE. 80.16(a) Sections 32 to 83 and 95 to 99 are effective January 1, 2012. 80.17(b) Sections 11 to 20, 101, and 106 are effective July 1, 2010.

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HF 2781

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