1.1 	A bill for an act
1.2 	relating to economic development; amending the definition of green economy 
1.3 	to include the concept of green chemistry; creating a fast-action economic 
1.4 	response team; expanding the Minnesota investment fund; removing a grant 
1.5 	program restriction; expanding loan program to veteran-owned small businesses; 
1.6 	creating the Minnesota Science and Technology Authority; providing for a 
1.7 	comparative study of state laws affecting small business start-ups; modifying 
1.8 	certain unemployment insurance administrative, benefit, and tax provisions; 
1.9 	protecting customers from injuries resulting from use of inflatable play 
1.10 	equipment; modifying labor and industry licensing and certain license fee 
1.11 	provisions; modifying the requirements of the Manufactured Home Building 
1.12 	Code; allowing expedited rulemaking; providing for licensing and regulation of 
1.13 	individuals engaged in mortgage loan origination or mortgage loan business; 
1.14 	providing for licensing and regulation of appraisal management companies; 
1.15 	providing for property acquisition from petroleum tank fund proceeds; clarifying 
1.16 	requirements for granting additional cable franchises; regulating cadmium in 
1.17 	children's jewelry; regulating the sale and termination of portable electronics 
1.18 	insurance; authorizing amendments to a municipal comprehensive plan for 
1.19 	affordable housing; amending Iron Range resources provisions; requiring certain 
1.20 	reports; appropriating money; amending Minnesota Statutes 2008, sections 
1.21 	58.04, subdivision 1; 58.08, by adding a subdivision; 58.09; 58.10, subdivision 
1.22 	1; 58.11; 60K.36, subdivision 2; 60K.38, subdivision 1; 82B.05, subdivision 5, 
1.23 	by adding a subdivision; 82B.06; 115C.08, subdivision 1; 116J.437, subdivision 
1.24 	1; 116J.8731, subdivisions 1, 4; 116J.996; 238.08, subdivision 1; 268.035, 
1.25 	subdivision 20; 268.046, subdivision 1; 268.051, subdivisions 2, 5, 7; 268.07, as 
1.26 	amended; 268.085, subdivision 9; 326B.133, subdivisions 1, 3, 8, 11, by adding 
1.27 	subdivisions; 326B.197; 326B.33, subdivisions 18, 20, 21; 326B.42, by adding 
1.28 	subdivisions; 326B.44; 326B.46, as amended; 326B.47; 326B.475, subdivision 
1.29 	2; 326B.50, by adding subdivisions; 326B.54; 326B.55, as amended if enacted; 
1.30 	326B.56, as amended; 326B.805, subdivision 6; 326B.83, subdivisions 1, 3, 6; 
1.31 	326B.865; 326B.921, subdivisions 2, 4, 7; 326B.922; 326B.978, subdivision 
1.32 	2, by adding a subdivision; 327.31, subdivision 17, by adding subdivisions; 
1.33 	327.32, subdivision 1, by adding subdivisions; 327B.04, subdivision 2; 462.355, 
1.34 	subdivision 3; Minnesota Statutes 2009 Supplement, sections 58.06, subdivision 
1.35 	2; 60K.55, subdivision 2; 82B.05, subdivision 1; 115C.08, subdivision 4; 
1.36 	116J.8731, subdivision 3; 116L.20, subdivision 1; 268.035, subdivision 19a; 
1.37 	268.052, subdivision 2; 268.053, subdivision 1; 268.085, subdivision 1; 268.136, 
1.38 	subdivision 1; 326B.33, subdivision 19; 326B.475, subdivision 4; 326B.49, 
1.39 	subdivision 1; 326B.58; 326B.815, subdivision 1; 326B.86, subdivision 1; 
2.1 	326B.94, subdivision 4; 326B.986, subdivision 5; 327B.04, subdivisions 7, 7a, 
2.2 	8; 327B.041; Laws 2009, chapter 78, article 1, section 3, subdivision 2; Laws 
2.3 	2010, chapter 216, section 58; proposing coding for new law in Minnesota 
2.4 	Statutes, chapters 60K; 116J; 184B; 325E; 326B; proposing coding for new law 
2.5 	as Minnesota Statutes, chapters 58A; 82C; 116W; repealing Minnesota Statutes 
2.6 	2008, sections 116J.657; 326B.133, subdivisions 9, 10; 326B.37, subdivision 13; 
2.7 	326B.475, subdivisions 5, 6; 326B.56, subdivision 3; 326B.885, subdivisions 3, 
2.8 	4; 326B.976; 327.32, subdivision 4; 327C.07, subdivisions 3, 3a, 8; Minnesota 
2.9 	Statutes 2009 Supplement, sections 58.126; 326B.56, subdivision 4; Laws 2010, 
2.10 	chapter 215, article 9, section 3; Minnesota Rules, parts 1301.0500; 1301.0900; 
2.11 	1301.1100, subparts 2, 3, 4; 1350.7200, subpart 3; 1350.8000, subpart 2.
2.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.13 	ARTICLE 1
2.14 	EMPLOYMENT AND ECONOMIC DEVELOPMENT

2.15 	Section 1. Minnesota Statutes 2008, section 116J.437, subdivision 1, is amended to 
2.16 	read:
2.17 		Subdivision 1.Definitions. (a) For the purpose of this section, the following terms 
2.18 	have the meanings given.
2.19 	(b) "Green economy" means products, processes, methods, technologies, or services 
2.20 	intended to do one or more of the following:
2.21 	(1) increase the use of energy from renewable sources, including through achieving 
2.22 	the renewable energy standard established in section 216B.1691;
2.23 	(2) achieve the statewide energy-savings goal established in section 216B.2401, 
2.24 	including energy savings achieved by the conservation investment program under section 
2.25 	216B.241;
2.26 	(3) achieve the greenhouse gas emission reduction goals of section 216H.02, 
2.27 	subdivision 1, including through reduction of greenhouse gas emissions, as defined in 
2.28 	section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, 
2.29 	but not limited to, carbon capture, storage, or sequestration;
2.30 	(4) monitor, protect, restore, and preserve the quality of surface waters, including 
2.31 	actions to further the purposes of the Clean Water Legacy Act as provided in section 
2.32 	114D.10, subdivision 1; or
2.33 	(5) expand the use of biofuels, including by expanding the feasibility or reducing the 
2.34 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can 
2.35 	use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 
2.36 	41A.10, subdivision 2, and 41A.11; or
2.37 	(6) increase the use of green chemistry, as defined in section 116.9401.
3.1 	For the purpose of clause (3), "green economy" includes strategies that reduce carbon 
3.2 	emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 
3.3 	transit or otherwise reducing commuting for employees.

3.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.5 	Sec. 2. [116J.872] RESPONSE TEAM.
3.6 	(a) The department shall operate a fast-action economic response team to contact 
3.7 	and work with businesses that are identified as being:
3.8 	(1) at risk for relocating or expanding outside the state; or
3.9 	(2) prospects for expansion or relocation within the state.
3.10 	(b) The fast-action response team must contact identified businesses within 24 hours.

3.11 	Sec. 3. Minnesota Statutes 2008, section 116J.8731, subdivision 1, is amended to read:
3.12 		Subdivision 1.Purpose. The Minnesota investment fund is created to provide 
3.13 	financial and technical assistance, through partnership with communities, for the creation 
3.14 	of new employment or to maintain existing employment, and for business start-up, 
3.15 	expansions, and retention. It shall accomplish these goals by the following means:
3.16 	(1) creation or retention of permanent private-sector jobs in order to create 
3.17 	above-average economic growth consistent with environmental protection, which includes 
3.18 	investments in technology and equipment that increase productivity and provide for a 
3.19 	higher wage;
3.20 	(2) stimulation or leverage of private investment to ensure economic renewal and 
3.21 	competitiveness;
3.22 	(3) increasing the local tax base, based on demonstrated measurable outcomes, to 
3.23 	guarantee a diversified industry mix;
3.24 	(4) improving the quality of existing jobs, based on increases in wages or 
3.25 	improvements in the job duties, training, or education associated with those jobs;
3.26 	(5) improvement of employment and economic opportunity for citizens in the region 
3.27 	to create a reasonable standard of living, consistent with federal and state guidelines 
3.28 	on low- to moderate-income persons; and
3.29 	(6) stimulation of productivity growth through improved manufacturing or new 
3.30 	technologies, including cold weather testing.

3.31 	Sec. 4. Minnesota Statutes 2009 Supplement, section 116J.8731, subdivision 3, is 
3.32 	amended to read:
4.1 		Subd. 3.Eligible expenditures. The money appropriated for this section may be 
4.2 	used to fund:
4.3 	(1) fund grants for infrastructure, loans, loan guarantees, interest buy-downs, and 
4.4 	other forms of participation with private sources of financing, provided that a loan to a 
4.5 	private enterprise must be for a principal amount not to exceed one-half of the cost of the 
4.6 	project for which financing is sought; and
4.7 	(2) fund strategic investments in renewable energy market development, such as 
4.8 	low interest loans for renewable energy equipment manufacturing, training grants to 
4.9 	support renewable energy workforce, development of a renewable energy supply chain 
4.10 	that represents and strengthens the industry throughout the state, and external marketing 
4.11 	to garner more national and international investment into Minnesota's renewable sector. 
4.12 	Expenditures in external marketing for renewable energy market development are not 
4.13 	subject to the limitations in clause (1); and
4.14 	(3) provide private entrepreneurs with training, other technical assistance, and 
4.15 	financial assistance, as provided in the small cities development block grant program.

4.16 	Sec. 5. Minnesota Statutes 2008, section 116J.8731, subdivision 4, is amended to read:
4.17 		Subd. 4.Eligible projects. Assistance must be evaluated on the existence of the 
4.18 	following conditions:
4.19 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
4.20 	existing jobs as measured by the wages, skills, or education associated with those jobs;
4.21 	(2) increase in the tax base;
4.22 	(3) the project can demonstrate that investment of public dollars induces private 
4.23 	funds;
4.24 	(4) the project can demonstrate an excessive public infrastructure or improvement 
4.25 	cost beyond the means of the affected community and private participants in the project;
4.26 	(5) the project provides higher wage levels to the community or will add value to 
4.27 	current workforce skills;
4.28 	(6) the project supports the development of microenterprises, as defined by federal 
4.29 	statutes, through financial assistance, technical assistance, advice, or business services;
4.30 	 (7) whether assistance is necessary to retain existing business;
4.31 	(7) (8) whether assistance is necessary to attract out-of-state business; and
4.32 	(8) (9) the project promotes or advances the green economy as defined in section 
4.33 	116J.437.
5.1 	A grant or loan cannot be made based solely on a finding that the conditions in 
5.2 	clause (6) (7) or (7) (8) exist. A finding must be made that a condition in clause (1), (2), 
5.3 	(3), (4), or (5), or (6) also exists.
5.4 	Applications recommended for funding shall be submitted to the commissioner.

5.5 	Sec. 6. Minnesota Statutes 2008, section 116J.996, is amended to read:
5.6 	116J.996 MILITARY RESERVIST ECONOMIC INJURY AND 
5.7 	VETERAN-OWNED SMALL BUSINESS LOANS.
5.8 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
5.9 	section.
5.10 	(b) "Active service" has the meaning given in section 190.05.
5.11 	(c) "Commissioner" means the commissioner of employment and economic 
5.12 	development.
5.13 	(d) "Eligible business" means a small business, as defined in section 645.445, that 
5.14 	was operating in Minnesota on the date a military reservist received orders for active 
5.15 	service.
5.16 	(e) "Essential employee" means a military reservist who is an owner or employee 
5.17 	of an eligible business and whose managerial or technical expertise is critical to the 
5.18 	day-to-day operation of the eligible business.
5.19 	(f) "Military reservist" means a member of the reserve component of the armed 
5.20 	forces.
5.21 	(g) "Reserve component of the armed forces" has the meaning given it in United 
5.22 	States Code, title 10, section 101(c).
5.23 	(h) "Substantial economic injury" means an economic harm to an eligible business 
5.24 	that results in the inability of the eligible business to:
5.25 	(1) meet its obligations as they mature;
5.26 	(2) pay its ordinary and necessary operating expenses; or
5.27 	(3) manufacture, produce, market, or provide a product or service ordinarily 
5.28 	manufactured, produced, marketed, or provided by the eligible business.
5.29 	(i) "Veteran-owned small business" means a small business, as defined in section 
5.30 	645.445, that is majority-owned and operated by a veteran as defined in section 197.447.
5.31 		Subd. 2.Loan program. The commissioner may make onetime, interest-free loans 
5.32 	of up to $20,000 per borrower to: (1) eligible businesses that have sustained or are likely 
5.33 	to sustain substantial economic injury as a result of the call to active service for 180 days 
5.34 	or more of an essential employee; or (2) veterans who are veterans as defined in section 
6.1 	197.447, to start a veteran-owned small business. Loans for economic injury must be made 
6.2 	for the purpose of preventing, remedying, or ameliorating the substantial economic injury.
6.3 		Subd. 3.Revolving loan account. The commissioner shall use money appropriated 
6.4 	for the purpose to establish a revolving loan account. All repayments of loans made 
6.5 	under this section must be deposited into this account. Interest earned on money in the 
6.6 	account accrues to the account. Money in the account is appropriated to the commissioner 
6.7 	for purposes of the loan program created in this section, including costs incurred by the 
6.8 	commissioner to establish and administer the program.
6.9 		Subd. 4.Rules. Using the expedited rulemaking procedures of section 14.389, the 
6.10 	commissioner shall develop and publish expedited rules for loan applications, use of 
6.11 	funds, needed collateral, terms of loans, and other details of military reservist economic 
6.12 	injury and veteran-owned small business loans.

6.13 	Sec. 7. Minnesota Statutes 2009 Supplement, section 116L.20, subdivision 1, is 
6.14 	amended to read:
6.15 		Subdivision 1.Determination and collection of special assessment. (a) In addition 
6.16 	to amounts due from an employer under the Minnesota unemployment insurance program, 
6.17 	each employer, except an employer making reimbursements is liable for a special 
6.18 	assessment levied at the rate of .10 percent per year on all taxable wages, as defined in 
6.19 	section 268.035, subdivision 24, except that effective July 1, 2009, until June 30, 2011, the 
6.20 	special assessment shall be levied at a rate of .12 percent per year on all taxable wages 
6.21 	as defined in section 268.035, subdivision 24. The commissioner of employment and 
6.22 	economic development may increase the assessment rate to meet the state's workforce 
6.23 	development needs, from .12 percent to .14 percent per year, on all taxable wages as 
6.24 	defined in section 268.035, subdivision 24. The assessment shall become due and be paid 
6.25 	by each employer on the same schedule and in the same manner as other amounts due 
6.26 	from an employer under section 268.051, subdivision 1.
6.27 	(b) The special assessment levied under this section shall be subject to the same 
6.28 	requirements and collection procedures as any amounts due from an employer under the 
6.29 	Minnesota unemployment insurance program.

6.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.31 	Sec. 8. [116W.01] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY 
6.32 	ACT.
6.33 	This chapter may be cited as the "Minnesota Science and Technology Authority Act."

7.1 	EFFECTIVE DATE. This section is effective July 1, 2010.

7.2 	Sec. 9. [116W.02] DEFINITIONS.
7.3 		Subdivision 1.Applicability. For the purposes of this chapter, the terms in this 
7.4 	section have the meanings given them.
7.5 		Subd. 2.Authority. "Authority" means the Minnesota Science and Technology 
7.6 	Authority.
7.7 		Subd. 3.Eligible recipient. "Eligible recipient" means an entity primarily operating 
7.8 	to create and retain jobs in the state's industrial base and maximize the economic growth 
7.9 	of the state through:
7.10 	(1) high-technology research and development capabilities;
7.11 	(2) product and process innovation and commercialization;
7.12 	(3) high-technology manufacturing capabilities;
7.13 	(4) science and technology business environment; or
7.14 	(5) science and technology workforce preparation.
7.15 		Subd. 4.Advisory commission. "Advisory commission" means the advisory 
7.16 	commission under section 116W.051.

7.17 	EFFECTIVE DATE. This section is effective July 1, 2010.

7.18 	Sec. 10. [116W.03] MINNESOTA SCIENCE AND TECHNOLOGY 
7.19 	AUTHORITY.
7.20 		Subdivision 1.Membership. The Minnesota Science and Technology Authority 
7.21 	consists of the commissioner of employment and economic development, the 
7.22 	commissioner of management and budget, the commissioner of revenue, the commissioner 
7.23 	of commerce, and the commissioner of agriculture.
7.24 		Subd. 2.Chair; other officers. The commissioner of employment and economic 
7.25 	development shall serve as the chair and chief executive officer of the authority. The 
7.26 	authority shall rotate the position of vice chair annually among its members. The 
7.27 	commissioner of employment and economic development shall convene the first meeting 
7.28 	of the authority no later than July 1, 2010. In the absence of the chair or vice chair at 
7.29 	meetings of the authority members may elect a chair for the meeting, and may elect other 
7.30 	officers as necessary from its members.
7.31 		Subd. 3.Delegation. In addition to any powers to delegate that members of the 
7.32 	authority have as commissioners, they may delegate to the chair, vice chair, or executive 
7.33 	director their responsibilities as members of the authority for reviewing and approving 
8.1 	financing of eligible projects, projects that have been authorized by law, or programs 
8.2 	specifically authorized by resolution of the authority.
8.3 		Subd. 4.Actions. (a) A majority of the authority, excluding vacancies, constitutes a 
8.4 	quorum to conduct its business, to exercise its powers, and for all other purposes.
8.5 	(b) The authority may conduct its business by any technological means available, 
8.6 	including teleconference calls or interactive video, that allows for an interaction between 
8.7 	members. If a meeting is conducted under this paragraph, a specific location must be 
8.8 	available for the public to attend the meeting and at least one member must be present at 
8.9 	that location.
8.10 		Subd. 5.Executive director; staffing. The authority shall employ an executive 
8.11 	director in the unclassified service. The initial executive director must be the individual in 
8.12 	the position of director of the Office of Science and Technology as of January 1, 2010, 
8.13 	under section 116J.657. The executive director is responsible for hiring staff necessary to 
8.14 	assist the executive director to carry out the duties and responsibilities of the authority. 
8.15 	The executive director shall perform duties that the authority may require in carrying out 
8.16 	its responsibilities to manage and implement the funds and programs in this chapter, and 
8.17 	comply with all state and federal program requirements, and state and federal securities 
8.18 	and tax laws and regulations. The executive director shall assist the advisory board in 
8.19 	fulfilling its duties under this chapter.
8.20 		Subd. 6.Administrative services. The authority shall enter into agreements for 
8.21 	administrative and professional services and technical support.
8.22 		Subd. 7.Expiration. This section expires June 30, 2018.

8.23 	EFFECTIVE DATE. This section is effective July 1, 2010.

8.24 	Sec. 11. [116W.04] POWERS AND DUTIES.
8.25 		Subdivision 1.Duties. The Science and Technology Authority shall: 
8.26 	(1) coordinate public and private efforts to procure federal funding for collaborative 
8.27 	research and development projects of primary benefit to small-sized and medium-sized 
8.28 	businesses;
8.29 	(2) promote contractual relationships between Minnesota businesses that are 
8.30 	recipients of federal grants and prime contractors, and Minnesota-based subcontractors; 
8.31 	(3) work with Minnesota nonprofit institutions including the University of 
8.32 	Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting 
8.33 	collaborative efforts to respond to federal funding opportunities;
8.34 	(4) develop a framework for Minnesota companies to establish sole-source 
8.35 	relationships with federal agencies; 
9.1 	(5) coordinate workshops, assistance with business proposals, licensing, intellectual 
9.2 	property protection, commercialization, and government auditing with the University of 
9.3 	Minnesota and Minnesota State Colleges and Universities; and
9.4 	(6) develop and implement a comprehensive science and technology economic 
9.5 	development strategy for the state.
9.6 		Subd. 2.Technology matchmaking. The authority must assist businesses in 
9.7 	identifying qualified suppliers and vendors through a program to serve as a conduit for 
9.8 	Minnesota-based companies to network with firms able to support their success. Firms 
9.9 	outside Minnesota can participate in the technology matchmaking network if one of the 
9.10 	participating companies is located in Minnesota.
9.11 		Subd. 3.Commercialization assistance. The authority must provide 
9.12 	commercialization assistance to Minnesota firms that have received a Phase I Small 
9.13 	Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer 
9.14 	(STTR) award and are submitting a Phase II proposal. Local service providers must assist 
9.15 	the applicant with developing and reviewing the required commercialization plan prior to 
9.16 	Phase II submission. The authority may provide SBIR Phase I proposal technical review.
9.17 		Subd. 4.Power to sue; enter contracts. The authority may sue and be sued. The 
9.18 	authority may make and enter into contracts, leases, and agreements necessary to perform 
9.19 	its duties and exercise its powers.
9.20 		Subd. 5.Gifts; grants. The authority may apply for, accept, and disburse gifts, 
9.21 	grants, loans, or other property from the United States, the state, private sources, or 
9.22 	any other source for any of its purposes. Money received by the authority under this 
9.23 	subdivision must be deposited in the state treasury and is appropriated to the authority to 
9.24 	carry out its duties.
9.25 		Subd. 6.Contract for services. The authority may retain or contract for the 
9.26 	services of accountants, financial advisors, and other consultants or agents needed to 
9.27 	perform its duties and exercise its powers.
9.28 		Subd. 7.Fees. The authority may set and collect fees for costs incurred by the 
9.29 	authority, the Department of Employment and Economic Development, the Department of 
9.30 	Management and Budget, the Department of Revenue, the Department of Commerce, the 
9.31 	Department of Labor and Industry, and the Department of Agriculture, including costs 
9.32 	for personnel, professional, and administrative services. 
9.33 		Subd. 8.Reports. (a) The authority shall report by February 1 of each year to the 
9.34 	chairs and the ranking minority members of the legislative committees and divisions with 
9.35 	jurisdiction over finance and economic development on its progress to design, coordinate, 
9.36 	and administer a strategic science and technology program for the state to promote the 
10.1 	welfare of the people of the state, maximize the economic growth of the state, and create 
10.2 	and retain jobs in the state's industrial base through enhancement of Minnesota's:
10.3 	(1) high-technology research and development capabilities;
10.4 	(2) product and process innovation and commercialization;
10.5 	(3) high-technology manufacturing capabilities;
10.6 	(4) science and technology business environment; and
10.7 	(5) science and technology workforce preparation.
10.8 	(b) The report must include a complete operating and financial statement covering 
10.9 	the authority's operations during the year, including amounts of income from all sources. 
10.10 	Books and records of the authority are subject to audit by the legislative auditor in the 
10.11 	manner prescribed for state agencies.
10.12 		Subd. 9.Consultative and technical services. The authority may provide general 
10.13 	consultative and technical services to assist eligible projects and enter into agreements or 
10.14 	other transactions concerning the receipt or provision of those services.
10.15 		Subd. 10.Financial information. Financial information, including credit reports, 
10.16 	financial statements, and net worth calculations, received or prepared by the authority 
10.17 	regarding financial assistance, is private data with regard to data on individuals as defined 
10.18 	in section 13.02, subdivision 12, and nonpublic data with regard to data not on individuals 
10.19 	as defined in section 13.02, subdivision 9. 
10.20 		Subd. 11.General. The authority shall have all powers necessary and appropriate to 
10.21 	fulfill its responsibilities under this chapter. 

10.22 	EFFECTIVE DATE. This section is effective July 1, 2010.

10.23 	Sec. 12. [116W.05] PROJECT FINANCIAL ASSISTANCE.
10.24 		Subdivision 1.Determination of financial assistance.  The authority shall assist 
10.25 	eligible  recipients in identifying grants or other sources of financial assistance available to 
10.26 	finance projects and may assist eligible recipients in applying for and obtaining grants and 
10.27 	other forms of assistance.
10.28 		Subd. 2.Financial feasibility review. (a) The authority shall review the proposed 
10.29 	financing for each project submitted to the authority to determine whether: (1) the 
10.30 	proposed project and financing plan is an eligible use of the money; and (2) the proposal is 
10.31 	in compliance with applicable state and federal tax and securities laws and regulations. 
10.32 	Grants in excess of $50,000 must be approved by the authority. Grants of $50,000 or less 
10.33 	may be authorized by the executive director. All grant approvals or disapprovals must be 
10.34 	completed within 30 days of submission to the authority.
11.1 	(b) Unless a project is specifically authorized by law, the authority may reject the 
11.2 	proposed financing for a project meeting the requirements in paragraph (a) if a majority 
11.3 	of members believe the financing of the project would not be in the best interests of the 
11.4 	state or would be detrimental to the authority's funds or programs. A determination to 
11.5 	reject a proposed project must not be made in an arbitrary and capricious manner and must 
11.6 	be supported by substantive evidence and documented by a resolution of the authority 
11.7 	stating its findings.

11.8 	EFFECTIVE DATE. This section is effective July 1, 2010.

11.9 	Sec. 13. [116W.051] ADVISORY COMMISSION.
11.10 		Subdivision 1.Advisory commission membership. A Science and Technology 
11.11 	Initiative Advisory Commission of 18 members is established and is comprised of:
11.12 	(1) two representatives of the University of Minnesota, selected by the president of 
11.13 	the university, including a faculty member actively involved in science and technology 
11.14 	research;
11.15 	(2) two representatives of the Minnesota State Colleges and Universities, selected by 
11.16 	the chancellor, including a faculty member actively involved in science and technology 
11.17 	research;
11.18 	(3) the chief executive officer of Mayo Clinic or a designee;
11.19 	(4) six chief executive officers or designees from science-oriented or 
11.20 	technology-oriented companies; 
11.21 	(5) four representatives from science-oriented and technology-oriented 
11.22 	organizations;
11.23 	(6) one representative of organized labor;
11.24 	(7) a venture capital representative; and
11.25 	(8) a representative of angel investors.
11.26 	A member must have experience in science or technology in order to serve on 
11.27 	the commission.
11.28 	Members of the commission listed in clauses (4) to (8) shall be appointed by the 
11.29 	authority.
11.30 		Subd. 2.Advisory commission duties. The advisory commission must assist the 
11.31 	authority in developing a comprehensive science and technology economic development 
11.32 	plan to be presented to the chairs and ranking minority members of the legislative 
11.33 	committees and divisions with jurisdiction over economic development by January 
11.34 	15, 2011. The plan must include recommendations in strategic areas for science and 
11.35 	technology investments, recommendations on additional programs to support science and 
12.1 	technology focused economic development activities in the state, selection of specific 
12.2 	programs and grantees for support from program funds authorized by the advisory 
12.3 	commission and ongoing assessment of the effectiveness of programmatic elements 
12.4 	according to metrics to be developed by the authority in consultation with the advisory 
12.5 	commission. The advisory commission may also advise and assist the authority in 
12.6 	fulfilling its duties under section 116W.04.
12.7 		Subd. 3.Membership terms; vacancies; compensation. The membership terms, 
12.8 	removal of members, filling of vacancies and compensation of members are as provided 
12.9 	under section 15.059. The compensation required under this section must be paid by 
12.10 	the authority.
12.11 		Subd. 4.Expiration. The advisory commission expires June 30, 2013.
12.12 		Subd. 5.Convening of meetings; staffing. The executive director of the authority 
12.13 	must convene the first meeting of the commission by August 1, 2010. The executive 
12.14 	director must provide administrative support and staff to the commission.

12.15 	EFFECTIVE DATE. This section is effective July 1, 2010.

12.16 	Sec. 14. [116W.20] MONEY OF THE AUTHORITY.
12.17 		Subdivision 1.Functions of commissioner of management and budget. Except 
12.18 	as otherwise provided in this section, money of the authority must be paid to the 
12.19 	commissioner of management and budget as agent of the authority and the commissioner 
12.20 	shall not commingle the money with other money. The money in the accounts of the 
12.21 	authority must be paid out only on warrants drawn by the commissioner of management 
12.22 	and budget on requisition of the executive director of the authority or of another officer or 
12.23 	employee as the authority authorizes. Deposits of the authority's money must, if required 
12.24 	by the commissioner or the authority, be secured by obligations of the United States or of 
12.25 	the state of a market value equal at all times to the amount of the deposit and all banks and 
12.26 	trust companies are authorized to give security for the deposits. All money paid to the 
12.27 	commissioner as agent of the authority is appropriated to the authority.
12.28 		Subd. 2.System of accounts. The commissioner of management and budget shall 
12.29 	prescribe a system of accounts.

12.30 	EFFECTIVE DATE. This section is effective July 1, 2010.

12.31 	Sec. 15. [116W.21] NONLIABILITY.
12.32 		Subdivision 1.Nonliability of individuals. No member of the authority, staff of 
12.33 	the authority, or other person executing other agreements or contracts of the authority is 
13.1 	liable personally or is subject to any personal liability or accountability by reason of their 
13.2 	issuance, execution, delivery, or performance.
13.3 		Subd. 2.Nonliability of state. The state is not liable on loans or other agreements 
13.4 	or contracts of the authority issued or entered into under this chapter and the loans or 
13.5 	other agreements or contracts of the authority are not a debt of the state. The loans or 
13.6 	other agreements or contracts of the authority must contain on their face a statement 
13.7 	to that effect.

13.8 	EFFECTIVE DATE. This section is effective July 1, 2010.

13.9 	Sec. 16. [116W.23] STATE PLEDGE AGAINST IMPAIRMENT OF 
13.10 	CONTRACTS.
13.11 	The state pledges and agrees with parties to any loans or other agreements or 
13.12 	contracts of the authority that the state will not: (1) limit or alter the rights vested in the 
13.13 	authority to fulfill the terms of any agreements made with the parties to any loans or other 
13.14 	agreements or contracts of the authority; or (2) in any way impair the rights and remedies 
13.15 	of the parties to any loans or other agreements or contracts of the authority. The authority 
13.16 	may include this pledge and agreement of the state in any agreement with the parties in 
13.17 	any loans or other agreements or contracts of the authority. 

13.18 	EFFECTIVE DATE. This section is effective July 1, 2010.

13.19 	Sec. 17. [116W.24] RESERVES; FUNDS; ACCOUNTS.
13.20 	The authority may establish reserves, funds, or accounts necessary to carry out the 
13.21 	purposes of the authority or to comply with any agreement made by or any resolution 
13.22 	passed by the authority.

13.23 	EFFECTIVE DATE. This section is effective July 1, 2010.

13.24 	Sec. 18. Minnesota Statutes 2008, section 462.355, subdivision 3, is amended to read:
13.25 		Subd. 3.Adoption by governing body. A proposed comprehensive plan or an 
13.26 	amendment to it may not be acted upon by the governing body until it has received the 
13.27 	recommendation of the planning agency or until 60 days have elapsed from the date an 
13.28 	amendment proposed by the governing body has been submitted to the planning agency 
13.29 	for its recommendation. Unless otherwise provided by charter, the governing body may by 
13.30 	resolution by a two-thirds vote of all of its members adopt and amend the comprehensive 
13.31 	plan or portion thereof as the official municipal plan upon such notice and hearing as 
13.32 	may be prescribed by ordinance. Except for amendments to permit affordable housing 
14.1 	development, a resolution to amend or adopt a comprehensive plan must be approved by 
14.2 	a two-thirds vote of all of the members. Amendments to permit an affordable housing 
14.3 	development are approved by a simple majority of all of the members. For purposes of 
14.4 	this subdivision, "affordable housing development" means a development in which at 
14.5 	least 20 percent of the residential units are restricted to occupancy for at least ten years 
14.6 	by residents whose household income at the time of initial occupancy does not exceed 
14.7 	60 percent of area median income, adjusted for household size, as determined by the 
14.8 	United States Department of Housing and Urban Development, and with respect to 
14.9 	rental units, the rents for affordable units do not exceed 30 percent of 60 percent of area 
14.10 	median income, adjusted for household size, as determined annually by the United States 
14.11 	Department of Housing and Urban Development.

14.12 	Sec. 19. Laws 2009, chapter 78, article 1, section 3, subdivision 2, is amended to read:

14.13
14.14	Subd. 2.Business and Community 
Development
 		8,980,000
		8,980,000

14.15	Appropriations by Fund
	
14.16	General
	7,941,000
	7,941,000
	
14.17	Remediation
	700,000
	700,000
	
14.18
14.19	Workforce 
Development
	339,000
	339,000
	
14.20 	(a) $700,000 the first year and $700,000 the 
14.21 	second year are from the remediation fund for 
14.22 	contaminated site cleanup and development 
14.23 	grants under Minnesota Statutes, section 
14.24 	116J.554. This appropriation is available 
14.25 	until expended.
14.26 	(b) $200,000 each year is from the general 
14.27 	fund for a grant to WomenVenture for 
14.28 	women's business development programs 
14.29 	and for programs that encourage and assist 
14.30 	women to enter nontraditional careers in the 
14.31 	trades; manual and technical occupations; 
14.32 	science, technology, engineering, and 
14.33 	mathematics-related occupations; and green 
14.34 	jobs. This appropriation may be matched 
14.35 	dollar for dollar with any resources available 
15.1 	from the federal government for these 
15.2 	purposes with priority given to initiatives 
15.3 	that have a goal of increasing by at least ten 
15.4 	percent the number of women in occupations 
15.5 	where women currently comprise less than 25 
15.6 	percent of the workforce. The appropriation 
15.7 	is available until expended.
15.8 	(c) $105,000 each year is from the general 
15.9 	fund and $50,000 each year is from the 
15.10 	workforce development fund for a grant to 
15.11 	the Metropolitan Economic Development 
15.12 	Association for continuing minority business 
15.13 	development programs in the metropolitan 
15.14 	area. This appropriation must be used for the 
15.15 	sole purpose of providing free or reduced 
15.16 	fee business consulting services to minority 
15.17 	entrepreneurs and contractors.
15.18 	(d)(1) $500,000 each year is from the 
15.19 	general fund for a grant to BioBusiness 
15.20 	Alliance of Minnesota for bioscience 
15.21 	business development programs to promote 
15.22 	and position the state as a global leader 
15.23 	in bioscience business activities. This 
15.24 	appropriation is added to the department's 
15.25 	base. These funds may be used to create, 
15.26 	recruit, retain, and expand biobusiness 
15.27 	activity in Minnesota; implement the 
15.28 	destination 2025 statewide plan; update 
15.29 	a statewide assessment of the bioscience 
15.30 	industry and the competitive position of 
15.31 	Minnesota-based bioscience businesses 
15.32 	relative to other states and other nations; 
15.33 	and develop and implement business and 
15.34 	scenario-planning models to create, recruit, 
15.35 	retain, and expand biobusiness activity in 
15.36 	Minnesota.
16.1 	(2) The BioBusiness Alliance must report 
16.2 	each year by February 15 to the committees 
16.3 	of the house of representatives and the senate 
16.4 	having jurisdiction over bioscience industry 
16.5 	activity in Minnesota on the use of funds; 
16.6 	the number of bioscience businesses and 
16.7 	jobs created, recruited, retained, or expanded 
16.8 	in the state since the last reporting period; 
16.9 	the competitive position of the biobusiness 
16.10 	industry; and utilization rates and results of 
16.11 	the business and scenario-planning models 
16.12 	and outcomes resulting from utilization of 
16.13 	the business and scenario-planning models.
16.14 	(e)(1) Of the money available in the 
16.15 	Minnesota Investment Fund, Minnesota 
16.16 	Statutes, section 116J.8731, to the 
16.17 	commissioner of the Department of 
16.18 	Employment and Economic Development, 
16.19 	up to $3,000,000 is appropriated in fiscal year 
16.20 	2010 for a loan to an aircraft manufacturing 
16.21 	and assembly company, associated with the 
16.22 	aerospace industry, for equipment utilized 
16.23 	to establish an aircraft completion center 
16.24 	at the Minneapolis-St. Paul International 
16.25 	Airport. The finishing center must use the 
16.26 	state's vocational training programs designed 
16.27 	specifically for aircraft maintenance training, 
16.28 	and to the extent possible, work to recruit 
16.29 	employees from these programs. The center 
16.30 	must create at least 200 new manufacturing 
16.31 	jobs within 24 months of receiving the 
16.32 	loan, and create not less than 500 new 
16.33 	manufacturing jobs over a five-year period 
16.34 	in Minnesota.
16.35 	(2) This loan is not subject to loan limitations 
16.36 	under Minnesota Statutes, section 116J.8731, 
17.1 	subdivision 5. Any match requirements 
17.2 	under Minnesota Statutes, section 116J.8731, 
17.3 	subdivision 3, may be made from current 
17.4 	resources. This is a onetime appropriation 
17.5 	and is effective the day following final 
17.6 	enactment.
17.7 	(f) $65,000 each year is from the general 
17.8 	fund for a grant to the Minnesota Inventors 
17.9 	Congress, of which at least $6,500 must be 
17.10 	used for youth inventors.
17.11 	(g) $200,000 the first year and $200,000 
17.12 	the second year are is for the Office of 
17.13 	Science and Technology. This is a onetime 
17.14 	appropriation.
17.15 	(h) $500,000 the first year and $500,000 the 
17.16 	second year are for a grant to Enterprise 
17.17 	Minnesota, Inc., for the small business 
17.18 	growth acceleration program under 
17.19 	Minnesota Statutes, section 116O.115. This 
17.20 	is a onetime appropriation and is available 
17.21 	until expended.
17.22 	(i)(1) $100,000 each year is from the 
17.23 	workforce development fund for a grant 
17.24 	under Minnesota Statutes, section 116J.421, 
17.25 	to the Rural Policy and Development 
17.26 	Center at St. Peter, Minnesota. The grant 
17.27 	shall be used for research and policy 
17.28 	analysis on emerging economic and social 
17.29 	issues in rural Minnesota, to serve as a 
17.30 	policy resource center for rural Minnesota 
17.31 	communities, to encourage collaboration 
17.32 	across higher education institutions, to 
17.33 	provide interdisciplinary team approaches 
17.34 	to research and problem-solving in rural 
18.1 	communities, and to administer overall 
18.2 	operations of the center.
18.3 	(2) The grant shall be provided upon the 
18.4 	condition that each state-appropriated 
18.5 	dollar be matched with a nonstate dollar. 
18.6 	Acceptable matching funds are nonstate 
18.7 	contributions that the center has received and 
18.8 	have not been used to match previous state 
18.9 	grants. Any funds not spent the first year are 
18.10 	available the second year.
18.11 	(j) Notwithstanding Minnesota Statutes, 
18.12 	section 268.18, subdivision 2, $414,000 of 
18.13 	funds collected for unemployment insurance 
18.14 	administration under this subdivision is 
18.15 	appropriated as follows: $250,000 to Lake 
18.16 	County for ice storm damage; $64,000 is for 
18.17 	the city of Green Isle for reimbursement of 
18.18 	fire relief efforts and other expenses incurred 
18.19 	as a result of the fire in the city of Green Isle; 
18.20 	and $100,000 is to develop the construction 
18.21 	mitigation pilot program to make grants for 
18.22 	up to five projects statewide available to local 
18.23 	government units to mitigate the impacts of 
18.24 	transportation construction on local small 
18.25 	business. These are onetime appropriations 
18.26 	and are available until expended.
18.27 	(k) Up to $10,000,000 is appropriated 
18.28 	from the Minnesota minerals 21st century 
18.29 	fund to the commissioner of Iron Range 
18.30 	resources and rehabilitation to make a grant 
18.31 	or forgivable loan to a manufacturer of 
18.32 	windmill blades at a facility to be located 
18.33 	within the taconite tax relief area defined in 
18.34 	Minnesota Statutes, section 273.134.
19.1 	(l) $1,000,000 is appropriated from the 
19.2 	Minnesota minerals 21st century fund to 
19.3 	the Board of Trustees of the Minnesota 
19.4 	State Colleges and Universities for a grant 
19.5 	to the Northeast Higher Education District 
19.6 	for planning, design, and construction of 
19.7 	classrooms and housing facilities for upper 
19.8 	division students in the engineering program.
19.9 	(m)(1) $189,000 each year is appropriated 
19.10 	from the workforce development fund for 
19.11 	grants of $63,000 to eligible organizations 
19.12 	each year to assist in the development of 
19.13 	entrepreneurs and small businesses. Each 
19.14 	state grant dollar must be matched with $1 
19.15 	of nonstate funds. Any balance in the first 
19.16 	year does not cancel but is available in the 
19.17 	second year.
19.18 	(2) Three grants must be awarded to 
19.19 	continue or to develop a program. One 
19.20 	grant must be awarded to the Riverbend 
19.21 	Center for Entrepreneurial Facilitation 
19.22 	in Blue Earth County, and two to other 
19.23 	organizations serving Faribault and Martin 
19.24 	Counties. Grant recipients must report to the 
19.25 	commissioner by February 1 of each year 
19.26 	that the organization receives a grant with the 
19.27 	number of customers served; the number of 
19.28 	businesses started, stabilized, or expanded; 
19.29 	the number of jobs created and retained; and 
19.30 	business success rates. The commissioner 
19.31 	must report to the house of representatives 
19.32 	and senate committees with jurisdiction 
19.33 	over economic development finance on the 
19.34 	effectiveness of these programs for assisting 
19.35 	in the development of entrepreneurs and 
19.36 	small businesses.

20.1 	EFFECTIVE DATE. This section is effective July 1, 2010.

20.2 	Sec. 20. REPORT ON AT-RISK BUSINESSES; CREATION OF FAST-ACTION 
20.3 	ECONOMIC RESPONSE TEAM.
 20.4 	Not later than 30 days after the effective date of this section, the commissioner of 
20.5 	employment and economic development shall submit to the chairs and ranking minority 
20.6 	members of the senate and house of representatives committees with primary jurisdiction 
20.7 	over jobs and employment and economic development a report that identifies retention 
20.8 	methods the department currently uses, and retention methods the department could use 
20.9 	in the future, to identify businesses at risk for relocation or expansion outside of this 
20.10 	state. The report must also include a proactive plan to identify businesses outside of 
20.11 	this state that are seeking to relocate or expand, or that could be encouraged to relocate 
20.12 	or expand through the use of incentives. In developing the plan, the commissioner shall 
20.13 	collaborate with economic development stakeholders from state government, business, 
20.14 	and nongovernmental organizations.

20.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.16 	Sec. 21. COMPARATIVE STUDY OF STATE REGULATION AFFECTING 
20.17 	SMALL BUSINESS START-UPS.
 20.18 	(a) $65,000 is appropriated for fiscal year 2011 from the general fund to the 
20.19 	Legislative Coordinating Commission to fund a grant for a comparative study of the 
20.20 	effects of state regulation on the cost and delay required to start a typical small business 
20.21 	in Minnesota, Iowa, North Dakota, South Dakota, and Wisconsin. This appropriation 
20.22 	is available until spent.
20.23 	(b) The study must examine the typical cost and delay required by state regulation 
20.24 	in the five states to start a typical small services business, small retail business, and 
20.25 	small manufacturing business. Within each of those three categories, the study must 
20.26 	choose to study similar types of businesses and follow the start-up process in the two 
20.27 	states from beginning to end, including formation, financing, licensing, permits, reporting 
20.28 	requirements, employment laws, and state and local taxes. The study must result in 
20.29 	a written report submitted to the Legislative Coordinating Commission no later than 
20.30 	December 1, 2011.
20.31 	(c) The Legislative Coordinating Commission shall request proposals and choose 
20.32 	the recipient of the grant from among higher education institutions that have a graduate 
20.33 	program in business, business administration, or a similar field. The Legislative 
20.34 	Coordinating Commission shall periodically monitor the recipient's progress on the study 
21.1 	and written report. The Legislative Coordinating Commission shall submit the written 
21.2 	report as a report to the legislature in compliance with Minnesota Statutes, sections 3.195 
21.3 	and 3.197.

21.4 	Sec. 22. APPROPRIATION.
 21.5 	$200,000 is appropriated from the general fund in fiscal year 2011 to the Minnesota 
21.6 	Science and Technology Authority for the purposes of Minnesota Statutes, chapter 116W.

21.7 	EFFECTIVE DATE. This section is effective July 1, 2010.

21.8 	Sec. 23.  REPEALER.
 21.9 	Minnesota Statutes 2008, section 116J.657, is repealed.

21.10 	EFFECTIVE DATE. This section is effective July 1, 2010.

21.11 	ARTICLE 2
21.12 	UNEMPLOYMENT INSURANCE

21.13 	Section 1. Minnesota Statutes 2009 Supplement, section 268.035, subdivision 19a, 
21.14 	is amended to read:
21.15 		Subd. 19a.Immediate family member. "Immediate family member" means 
21.16 	the applicant's an individual's  spouse, parent, stepparent, son or daughter, stepson or 
21.17 	stepdaughter, or grandson or granddaughter.

21.18 	Sec. 2. Minnesota Statutes 2008, section 268.035, subdivision 20, is amended to read:
21.19 		Subd. 20.Noncovered employment. "Noncovered employment" means:
21.20 	(1) employment for the United States government or an instrumentality thereof, 
21.21 	including military service;
21.22 	(2) employment for a state, other than Minnesota, or a political subdivision or 
21.23 	instrumentality thereof;
21.24 	(3) employment for a foreign government;
21.25 	(4) employment for an instrumentality wholly owned by a foreign government, 
21.26 	if the employment is of a character similar to that performed in foreign countries by 
21.27 	employees of the United States government or an instrumentality thereof and the United 
21.28 	States Secretary of State has certified that the foreign government grants an equivalent 
21.29 	exemption to similar employment performed in the foreign country by employees of the 
21.30 	United States government and instrumentalities thereof;
22.1 	(5) employment covered under United States Code, title 45, section 351, the 
22.2 	Railroad Unemployment Insurance Act;
22.3 	(6) employment covered by a reciprocal arrangement between the commissioner and 
22.4 	another state or the federal government that provides that all employment performed by an 
22.5 	individual for an employer during the period covered by the reciprocal arrangement is 
22.6 	considered performed entirely within another state;
22.7 	(7) employment for a church or convention or association of churches, or an 
22.8 	organization operated primarily for religious purposes that is operated, supervised, 
22.9 	controlled, or principally supported by a church or convention or association of churches 
22.10 	described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue 
22.11 	Code and exempt from income tax under section 501(a);
22.12 	(8) employment of a duly ordained or licensed minister of a church in the exercise of 
22.13 	a ministry or by a member of a religious order in the exercise of duties required by the 
22.14 	order, for Minnesota or a political subdivision or an organization described in United 
22.15 	States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt 
22.16 	from income tax under section 501(a);
22.17 	(9) employment of an individual receiving rehabilitation of "sheltered" work in 
22.18 	a facility conducted for the purpose of carrying out a program of rehabilitation for 
22.19 	individuals whose earning capacity is impaired by age or physical or mental deficiency 
22.20 	or injury or a program providing "sheltered" work for individuals who because of an 
22.21 	impaired physical or mental capacity cannot be readily absorbed in the competitive labor 
22.22 	market. This clause applies only to services performed for Minnesota or a political 
22.23 	subdivision or an organization described in United States Code, title 26, section 501(c)(3) 
22.24 	of the federal Internal Revenue Code and exempt from income tax under section 501(a) 
22.25 	in a facility certified by the Rehabilitation Services Branch of the department or in a day 
22.26 	training or habilitation program licensed by the Department of Human Services;
22.27 	(10) employment of an individual receiving work relief or work training as part of 
22.28 	an unemployment work relief or work training program assisted or financed in whole or 
22.29 	in part by any federal agency or an agency of a state or political subdivision thereof. 
22.30 	This clause applies only to employment for Minnesota or a political subdivision or an 
22.31 	organization described in United States Code, title 26, section 501(c)(3) of the federal 
22.32 	Internal Revenue Code and exempt from income tax under section 501(a). This clause does 
22.33 	not apply to programs that require unemployment benefit coverage for the participants;
22.34 	(11) employment for Minnesota or a political subdivision as an elected official, a 
22.35 	member of a legislative body, or a member of the judiciary;
23.1 	(12) employment as a member of the Minnesota National Guard or Air National 
23.2 	Guard;
23.3 	(13) employment for Minnesota, a political subdivision, or instrumentality thereof, 
23.4 	as an employee serving only on a temporary basis in case of fire, flood, tornado, or 
23.5 	similar emergency;
23.6 	(14) employment as an election official or election worker for Minnesota or a 
23.7 	political subdivision, but only if the compensation for that employment was less than 
23.8 	$1,000 in a calendar year;
23.9 	(15) employment for Minnesota that is a major policy-making or advisory position 
23.10 	in the unclassified service, including those positions established under section 43A.08, 
23.11 	subdivision 1a;
23.12 	(16) employment for a political subdivision of Minnesota that is a nontenured major 
23.13 	policy making or advisory position;
23.14 	(17) domestic employment in a private household, local college club, or local 
23.15 	chapter of a college fraternity or sorority performed for a person, only if the wages paid 
23.16 	in any calendar quarter in either the current or prior calendar year to all individuals in 
23.17 	domestic employment totaled less than $1,000.
23.18 	"Domestic employment" includes all service in the operation and maintenance of a 
23.19 	private household, for a local college club, or local chapter of a college fraternity or 
23.20 	sorority as distinguished from service as an employee in the pursuit of an employer's 
23.21 	trade or business;
23.22 	(18) employment of an individual by a son, daughter, or spouse, and employment of 
23.23 	a child under the age of 18 by the child's father or mother;
23.24 	(19) employment for a personal care assistance provider agency by an immediate 
23.25 	family member of a recipient who provides the direct care to the recipient through the 
23.26 	personal care assistance program under section 256B.0659;
23.27 	(20) employment of an inmate of a custodial or penal institution;
23.28 	(20) (21) employment for a school, college, or university by a student who is 
23.29 	enrolled and is regularly attending classes at the school, college, or university;
23.30 	(21) (22) employment of an individual who is enrolled as a student in a full-time 
23.31 	program at a nonprofit or public educational institution that maintains a regular faculty 
23.32 	and curriculum and has a regularly organized body of students in attendance at the place 
23.33 	where its educational activities are carried on, taken for credit at the institution, that 
23.34 	combines academic instruction with work experience, if the employment is an integral 
23.35 	part of the program, and the institution has so certified to the employer, except that this 
24.1 	clause does not apply to employment in a program established for or on behalf of an 
24.2 	employer or group of employers;
24.3 	(22) (23) employment of university, college, or professional school students in an 
24.4 	internship or other training program with the city of St. Paul or the city of Minneapolis 
24.5 	under Laws 1990, chapter 570, article 6, section 3;
24.6 	(23) (24) employment for a hospital by a patient of the hospital. "Hospital" means 
24.7 	an institution that has been licensed by the Department of Health as a hospital;
24.8 	(24) (25) employment as a student nurse for a hospital or a nurses' training school by 
24.9 	an individual who is enrolled and is regularly attending classes in an accredited nurses' 
24.10 	training school;
24.11 	(25) (26) employment as an intern for a hospital by an individual who has completed 
24.12 	a four-year course in an accredited medical school;
24.13 	(26) (27) employment as an insurance salesperson, by other than a corporate 
24.14 	officer, if all the wages from the employment is solely by way of commission. The word 
24.15 	"insurance" includes an annuity and an optional annuity;
24.16 	(27) (28) employment as an officer of a township mutual insurance company or 
24.17 	farmer's mutual insurance company operating under chapter 67A;
24.18 	(28) (29) employment of a corporate officer, if the officer owns 25 percent or more 
24.19 	of the employer corporation, and employment of a member of a limited liability company, 
24.20 	if the member owns 25 percent or more of the employer limited liability company;
24.21 	(29)(30) employment as a real estate salesperson, by other than a corporate officer, 
24.22 	if all the wages from the employment is solely by way of commission;
24.23 	(30) (31) employment as a direct seller as defined in United States Code, title 26, 
24.24 	section 3508;
24.25 	(31) (32) employment of an individual under the age of 18 in the delivery or 
24.26 	distribution of newspapers or shopping news, not including delivery or distribution to any 
24.27 	point for subsequent delivery or distribution;
24.28 	(32) (33) casual employment performed for an individual, other than domestic 
24.29 	employment under clause (17), that does not promote or advance that employer's trade or 
24.30 	business;
24.31 	(33) (34) employment in "agricultural employment" unless considered "covered 
24.32 	agricultural employment" under subdivision 11; or
24.33 	(34) (35) if employment during one-half or more of any pay period was covered 
24.34 	employment, all the employment for the pay period is considered covered employment; 
24.35 	but if during more than one-half of any pay period the employment was noncovered 
24.36 	employment, then all of the employment for the pay period is considered noncovered 
25.1 	employment. "Pay period" means a period of not more than a calendar month for which a 
25.2 	payment or compensation is ordinarily made to the employee by the employer.

25.3 	Sec. 3. Minnesota Statutes 2008, section 268.046, subdivision 1, is amended to read:
25.4 		Subdivision 1.Tax accounts assigned. (a) Any person that contracts with a 
25.5 	taxpaying employer to have that person obtain the taxpaying employer's workforce and 
25.6 	provide workers to the taxpaying employer for a fee is, as of the effective date of the 
25.7 	contract, assigned for the duration of the contract the taxpaying employer's account under 
25.8 	section 268.045. That tax account must be maintained by the person separate and distinct 
25.9 	from every other tax account held by the person and identified in a manner prescribed by 
25.10 	the commissioner. The tax account is, for the duration of the contract, considered that 
25.11 	person's account for all purposes of this chapter. The workers obtained from the taxpaying 
25.12 	employer and any other workers provided by that person to the taxpaying employer, 
25.13 	including officers of the taxpaying employer as defined in section 268.035, subdivision 20, 
25.14 	clause (28), whose wages paid by the person are considered paid in covered employment 
25.15 	under section 268.035, subdivision 24, for the duration of the contract between the 
25.16 	taxpaying employer and the person, must, under section 268.044, be reported on the wage 
25.17 	detail report under that tax account, and that person must pay any taxes due at the tax rate 
25.18 	computed for that account under section 268.051, subdivision 2.
25.19 	(b) Any workers of the taxpaying employer who are not covered by the contract 
25.20 	under paragraph (a) must be reported by the taxpaying employer as a separate unit on the 
25.21 	wage detail report under the tax account assigned under paragraph (a). Taxes and any 
25.22 	other amounts due on the wages reported by the taxpaying employer under this paragraph 
25.23 	may be paid directly by the taxpaying employer.
25.24 	(c) If the taxpaying employer that contracts with a person under paragraph (a) does 
25.25 	not have a tax account at the time of the execution of the contract, an account must be 
25.26 	registered for the taxpaying employer under section 268.042 and the new employer tax 
25.27 	rate under section 268.051, subdivision 5, must be assigned. The tax account is then 
25.28 	assigned to the person as provided for in paragraph (a).
25.29 	(d) A person that contracts with a taxpaying employer under paragraph (a) 
25.30 	must, within 30 calendar days of the execution or termination of a contract, notify the 
25.31 	commissioner by electronic transmission, in a format prescribed by the commissioner, 
25.32 	of that execution or termination. The taxpaying employer's name, the account number 
25.33 	assigned, and any other information required by the commissioner must be provided 
25.34 	by that person.
26.1 	(e) Any contract subject to paragraph (a) must specifically inform the taxpaying 
26.2 	employer of the assignment of the tax account under this section and the taxpaying 
26.3 	employer's obligation under paragraph (b). If there is a termination of the contract, the tax 
26.4 	account is, as of the date of termination, immediately assigned to the taxpaying employer.

26.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.6 	Sec. 4. Minnesota Statutes 2008, section 268.051, subdivision 2, is amended to read:
26.7 		Subd. 2.Computation of tax rates; additional assessments. (a) For each calendar 
26.8 	year the commissioner shall must compute the tax rate of each taxpaying employer that 
26.9 	qualifies for an experience rating by adding the base tax rate to the employer's experience 
26.10 	rating along with assigning any appropriate additional assessment under paragraph (d) (c).
26.11 	(b) The base tax rate for the calendar year and any additional assessments under this 
26.12 	subdivision are determined based upon the amount in the trust fund on March 31 of the 
26.13 	prior year as a percentage of total wages paid in covered employment. The base tax rate is:
26.14 	(1) one-tenth of one percent if the trust fund is equal to or more than 0.75 percent;
26.15 	(2) two-tenths of one percent if the trust fund is less than 0.75 percent but equal to or 
26.16 	more than 0.65 percent;
26.17 	(3) three-tenths of one percent if the trust fund is less than 0.65 percent but equal 
26.18 	to or more than 0.55 percent; or
26.19 	(4) four-tenths of one percent if the trust fund is less than 0.55 percent, but has a 
26.20 	positive balance; or
26.21 	(5) five-tenths of one percent if the trust fund has a negative balance and is 
26.22 	borrowing from the federal unemployment trust fund in order to pay unemployment 
26.23 	benefits as provided for under section 268.194, subdivision 6.
26.24 	(c) There is a "falling trust fund adjustment" to the base tax rate for the calendar year 
26.25 	if the amount in the trust fund on March 31 of the prior year is less than 0.75 percent of 
26.26 	total wages paid in covered employment and:
26.27 	(1) the amount in the trust fund on March 31 of the prior year is ten percent or more 
26.28 	below the amount in the trust fund on March 31 of the year before that; or
26.29 	(2) the amount in the trust fund on March 31 of the prior year is greater than the 
26.30 	amount in the trust fund on June 30 of that same year.
26.31 	If a "falling trust fund adjustment" is applicable, then the base tax rate is one-tenth of one 
26.32 	percent greater than otherwise provided for under paragraph (b).
26.33 	(d) In addition to the base tax rate, there is an additional assessment for the calendar 
26.34 	year on the quarterly unemployment taxes due from every taxpaying employer if the 
27.1 	amount in the trust fund on March 31 of the prior year is less than 0.55 percent of total 
27.2 	wages paid in covered employment. The assessment is as follows:
27.3 	(1) a five percent assessment if the trust fund is less than 0.55 percent but equal to or 
27.4 	more than 0.45 percent;
27.5 	(2) a ten percent assessment if the trust fund is less than 0.45 percent but equal 
27.6 	to or more than 0.35 percent; or
27.7 	(3) a 14 percent assessment if the trust fund is less than 0.35 percent.
27.8 	(e) (d) For the purposes of this subdivision, the trust fund does not include any 
27.9 	money borrowed from the federal unemployment trust fund provided for in section 
27.10 	268.194, subdivision 6. 
27.11 	(f) (e) For the purposes of this subdivision, total wages paid in covered employment 
27.12 	are those wages paid to all employees in covered employment during the calendar year 
27.13 	before the March 31 date used in paragraph (b).
27.14 	(g) (f) The base tax rate and any additional assessments are assessed on all taxpaying 
27.15 	employers to cover a portion of the costs to the trust fund for unemployment benefits paid 
27.16 	that do not affect any single employer's future experience rating because:
27.17 	(1) the employer's experience rating is limited by the maximum under subdivision 3, 
27.18 	paragraph (b);
27.19 	(2) the employer has ceased doing business; or
27.20 	(3) the unemployment benefits paid have been determined not to be used in 
27.21 	computing the employer's experience rating under section 268.047, subdivision 2 or 3.

27.22 	Sec. 5. Minnesota Statutes 2008, section 268.051, subdivision 5, is amended to read:
27.23 		Subd. 5.Tax rate for new employers. (a) Each new taxpaying employer that does 
27.24 	not qualify for an experience rating under subdivision 3, except new employers in a high 
27.25 	experience rating industry, must be assigned, for a calendar year, a tax rate the higher of 
27.26 	(1) one percent, or (2) the tax rate computed, to the nearest one-hundredth 1/100 of a 
27.27 	percent, by dividing the total amount of unemployment benefits paid all applicants during 
27.28 	the 48 calendar months ending on June 30 of the prior calendar year by the total taxable 
27.29 	wages of all taxpaying employers during the same period, plus the applicable base tax rate 
27.30 	and any additional assessments under subdivision 2, paragraph (d).
27.31 	(b) Each new taxpaying employer in a high experience rating industry that does not 
27.32 	qualify for an experience rating under subdivision 3, must be assigned, for a calendar 
27.33 	year, a tax rate the higher of 8.00 percent,(1) that assigned under paragraph (a), or (2) 
27.34 	the tax rate, computed to the nearest 1/100 of a percent, by dividing the total amount 
27.35 	of unemployment benefits paid to all applicants from high experience rating industry 
28.1 	employers during the 48 calendar months ending on June 30 of the prior calendar year by 
28.2 	the total taxable wages of all high experience rating industry employers during the same 
28.3 	period, to a maximum provided for under subdivision 3, paragraph (b), plus the applicable 
28.4 	base tax rate and any additional assessments under subdivision 2, paragraph (d). 
28.5 	(c) An employer is considered to be in a high experience rating industry if:
28.6 	(1) the employer is engaged in residential, commercial, or industrial construction, 
28.7 	including general contractors;
28.8 	(2) the employer is engaged in sand, gravel, or limestone mining;
28.9 	(3) the employer is engaged in the manufacturing of concrete, concrete products, 
28.10 	or asphalt; or
28.11 	(4) the employer is engaged in road building, repair, or resurfacing, including bridge 
28.12 	and tunnels and residential and commercial driveways and parking lots.
28.13 	(c)(d) The commissioner shall must send to the new employer, by mail or electronic 
28.14 	transmission, notice of the tax rate assigned. An employer may appeal the assignment of a 
28.15 	tax rate in accordance with the procedures in subdivision 6, paragraph (c).

28.16 	Sec. 6. Minnesota Statutes 2008, section 268.051, subdivision 7, is amended to read:
28.17 		Subd. 7.Tax rate buydown. (a) Any taxpaying employer that has been assigned 
28.18 	a tax rate based upon an experience rating, and has no amounts past due under this 
28.19 	chapter, may, upon the payment of an amount equivalent to any portion or all of the 
28.20 	unemployment benefits used in computing the experience rating plus a surcharge of 25 
28.21 	percent, obtain a cancellation of unemployment benefits used equal to the payment made, 
28.22 	less the surcharge. The payment is applied to the most recent unemployment benefits paid 
28.23 	that are used in computing the experience rating. Upon the payment, the commissioner 
28.24 	shall must compute a new experience rating for the employer, and compute a new tax rate.
28.25 	(b) Payments for a tax rate buydown may be made only by electronic payment 
28.26 	and must be received within 120 calendar days from the beginning of the calendar year 
28.27 	for which the tax rate is effective.
28.28 	(c) For calendar years 2011, 2012, and 2013, the surcharge of 25 percent provided 
28.29 	for in paragraph (a) does not apply.

28.30 	Sec. 7. Minnesota Statutes 2009 Supplement, section 268.052, subdivision 2, is 
28.31 	amended to read:
28.32 		Subd. 2.Election by state or political subdivision to be taxpaying employer. (a) 
28.33 	The state or political subdivision may elect to be a taxpaying employer for any calendar 
28.34 	year if a notice of election is filed within 30 calendar days following January 1 of that 
29.1 	calendar year. The election is effective at the beginning of the next calendar quarter. Upon 
29.2 	election, the state or political subdivision must be assigned the new employer tax rate 
29.3 	under section 268.051, subdivision 5, for the calendar year of the election and unless or 
29.4 	until it qualifies for an experience rating under section 268.051, subdivision 3.
29.5 	(b) An election is for a minimum period of two 24 calendar years months following 
29.6 	the effective date of the election and continue unless a notice terminating the election 
29.7 	is filed not later than 30 calendar days before the beginning of the calendar year. The 
29.8 	termination is effective at the beginning of the next calendar year quarter.
29.9 	(c)(b) The method of payments to the trust fund under subdivisions 3 and 4 applies 
29.10 	to all taxes paid by or due from the state or political subdivision that elects to be taxpaying 
29.11 	employers under this subdivision.
29.12 	(d)(c) A notice of election or a notice terminating election must be filed by 
29.13 	electronic transmission in a format prescribed by the commissioner.

29.14 	EFFECTIVE DATE. This section is effective November 30, 2010.

29.15 	Sec. 8. Minnesota Statutes 2009 Supplement, section 268.053, subdivision 1, is 
29.16 	amended to read:
29.17 		Subdivision 1.Election. (a) Any nonprofit organization that has employees in 
29.18 	covered employment must pay taxes on a quarterly basis in accordance with section 
29.19 	268.051 unless it elects to make reimbursements to the trust fund the amount of 
29.20 	unemployment benefits charged to its reimbursable account under section 268.047.
29.21 	The organization may elect to make reimbursements for a period of not less than two
29.22 	24 calendar years months beginning with the date that the organization was determined to 
29.23 	be an employer with covered employment by filing a notice of election not later than 30 
29.24 	calendar days after the date of the determination.
29.25 	(b) Any nonprofit organization that makes an election will continue to be liable for 
29.26 	reimbursements until it files a notice terminating its election not later than 30 calendar 
29.27 	days before the beginning of the calendar year quarter the termination is to be effective.
29.28 	(c) A nonprofit organization that has been making reimbursements that files a notice 
29.29 	of termination of election must be assigned the new employer tax rate under section 
29.30 	268.051, subdivision 5, for the calendar year of the termination of election and unless or
29.31 	until it qualifies for an experience rating under section 268.051, subdivision 3.
29.32 	(d)(c) Any nonprofit organization that has been paying taxes may elect to make 
29.33 	reimbursements by filing no less than 30 calendar days before January 1 of any calendar 
29.34 	year a notice of election. The election is effective at the beginning of the next calendar 
30.1 	quarter. The election is not terminable by the organization for that and the next 24
30.2 	calendar year months.
30.3 	(e)(d) The commissioner may for good cause extend the period that a notice of 
30.4 	election, or a notice of termination, must be filed and may permit an election to be 
30.5 	retroactive.
30.6 	(f)(e) A notice of election or notice terminating election must be filed by electronic 
30.7 	transmission in a format prescribed by the commissioner.

30.8 	EFFECTIVE DATE. This section is effective November 30, 2010.

30.9 	Sec. 9. Minnesota Statutes 2008, section 268.07, as amended by Laws 2009, chapter 
30.10 	15, sections 5 and 6, and chapter 78, article 3, section 6, and article 4, sections 19 to 
30.11 	21, is amended to read:
30.12 	268.07 BENEFIT ACCOUNT.
30.13 		Subdivision 1.Application for unemployment benefits; determination of benefit 
30.14 	account. (a) An application for unemployment benefits may be filed in person, by mail, 
30.15 	or by electronic transmission as the commissioner may require. The applicant must be 
30.16 	unemployed at the time the application is filed and must provide all requested information 
30.17 	in the manner required. If the applicant is not unemployed at the time of the application 
30.18 	or fails to provide all requested information, the communication is not considered an 
30.19 	application for unemployment benefits.
30.20 	(b) The commissioner must examine each application for unemployment benefits to 
30.21 	determine the base period and the benefit year, and based upon all the covered employment 
30.22 	in the base period the commissioner shall must determine the weekly unemployment 
30.23 	benefit amount available, if any, and the maximum amount of unemployment benefits 
30.24 	available, if any. The determination, which is a document separate and distinct from a 
30.25 	document titled a determination of eligibility or determination of ineligibility issued under 
30.26 	section 268.101, must be titled determination of benefit account. A determination of 
30.27 	benefit account must be sent to the applicant and all base period employers, by mail or 
30.28 	electronic transmission.
30.29 	(c) If a base period employer did not provide wage detail information for the 
30.30 	applicant as required under section 268.044, or provided erroneous information, or wage 
30.31 	detail is not yet due and the applicant is using an alternate base period under section 
30.32 	268.035, subdivision 4, paragraph (d), the commissioner may accept an applicant 
30.33 	certification of wage credits, based upon the applicant's records, and issue a determination 
30.34 	of benefit account. 
31.1 	(d) An employer must provide wage detail information on an applicant within five 
31.2 	calendar days of request by the commissioner, in a manner and format requested, when:
31.3 	(1) the applicant is using an alternate base period under section 268.035, subdivision 
31.4 	4, paragraph (d); and
31.5 	(2) wage detail under section 268.044 is not yet required to have been filed by 
31.6 	the employer.
31.7 	(e) The commissioner may, at any time within 24 months from the establishment of 
31.8 	a benefit account, reconsider any determination of benefit account and make an amended 
31.9 	determination if the commissioner finds that the wage credits listed in the determination 
31.10 	was were incorrect for any reason. An amended determination of benefit account must 
31.11 	be promptly sent to the applicant and all base period employers, by mail or electronic 
31.12 	transmission. This subdivision does not apply to documents titled determinations of 
31.13 	eligibility or determinations of ineligibility issued under section 268.101.
31.14 	(f) If an amended determination of benefit account reduces the weekly 
31.15 	unemployment benefit amount or maximum amount of unemployment benefits available, 
31.16 	any unemployment benefits that have been paid greater than the applicant was entitled 
31.17 	is considered an overpayment of unemployment benefits. A determination or amended 
31.18 	determination issued under this section that results in an overpayment of unemployment 
31.19 	benefits must set out the amount of the overpayment and the requirement under section 
31.20 	268.18, subdivision 1, that the overpaid unemployment benefits must be repaid. 
31.21 		Subd. 2.Benefit account requirements and weekly unemployment benefit 
31.22 	amount and maximum amount of unemployment benefits. (a) Unless paragraph (b) 
31.23 	applies, to establish a benefit account:
31.24 	(1) using the primary base period under section 268.035, subdivision 4, paragraph 
31.25 	(a), an applicant must have:
31.26 	(1)(i) wage credits in the high quarter of $1,000 or more; and
31.27 	(2)(ii) wage credits, in other than the high quarter, of $250 or more.
31.28 	To establish a benefit account; or
31.29 	(2) using the secondary base period under section 268.035, subdivision 4, paragraph 
31.30 	(b), an applicant must have wage credits in the high quarter of $1,000 or more.
31.31 	(b) To establish a new benefit account within 52 calendar weeks following the 
31.32 	expiration of the benefit year on a prior benefit account, an applicant must meet the 
31.33 	requirements of paragraph (a) and must have performed services in covered employment 
31.34 	in a calendar quarter that started after the effective date of the prior benefit account. The 
31.35 	wage credits for those services must be at least eight times the weekly benefit amount on 
32.1 	the prior benefit account. One of the reasons for this paragraph is to prevent an applicant 
32.2 	from establishing a second benefit account as a result of one loss of employment.
32.3 		Subd. 2a.Weekly unemployment benefit amount and maximum amount of 
32.4 	unemployment benefits available. (b)(a) If an applicant has established a benefit 
32.5 	account under subdivision 2, the weekly unemployment benefit amount available during 
32.6 	the applicant's benefit year is the higher of:
32.7 	(1) 50 percent of the applicant's average weekly wage during the base period, to a 
32.8 	maximum of 66-2/3 percent of the state's average weekly wage; or
32.9 	(2) 50 percent of the applicant's average weekly wage during the high quarter, to a 
32.10 	maximum of 43 percent of the state's average weekly wage.
32.11 	The applicant's average weekly wage under clause (1) is computed by dividing 
32.12 	the total wage credits by 52. The applicant's average weekly wage under clause (2) is 
32.13 	computed by dividing the high quarter wage credits by 13.
32.14 	(c) (b) The state's maximum weekly benefit amount, computed in accordance with 
32.15 	section 268.035, subdivision 23, applies to a benefit account established effective on or 
32.16 	after the last Sunday in October. Once established, an applicant's weekly unemployment 
32.17 	benefit amount is not affected by the last Sunday in October change in the state's maximum 
32.18 	weekly unemployment benefit amount. 
32.19 	(d) (c) The maximum amount of unemployment benefits available on any benefit 
32.20 	account is the lower of:
32.21 	(1) 33-1/3 percent of the applicant's total wage credits; or
32.22 	(2) 26 times the applicant's weekly unemployment benefit amount.
32.23 		Subd. 3.Second benefit account requirements. To establish a second benefit 
32.24 	account following the expiration of a benefit year on a prior benefit account, an applicant 
32.25 	must meet the requirements of subdivision 2 and must have performed services in covered 
32.26 	employment after the effective date of the prior benefit account. The wages paid for those 
32.27 	services must be at least eight times the weekly unemployment benefit amount of the prior 
32.28 	benefit account. Part of the reason for this subdivision is to prevent an applicant from 
32.29 	establishing more than one benefit account as a result of one loss of employment.
32.30 		Subd. 3a.Right of appeal. (a) A determination or amended determination of benefit 
32.31 	account is final unless an applicant or base period employer within 20 calendar days 
32.32 	after the sending of the determination or amended determination files an appeal. Every 
32.33 	determination or amended determination of benefit account must contain a prominent 
32.34 	statement indicating in clear language the consequences of not appealing. Proceedings on 
32.35 	the appeal are conducted in accordance with section 268.105. 
33.1 	(b) Any applicant or base period employer may appeal from a determination or 
33.2 	amended determination of benefit account on the issue of whether services performed 
33.3 	constitute employment and, whether the employment is considered covered employment, 
33.4 	and whether money paid constitutes wages. Proceedings on the appeal are conducted in 
33.5 	accordance with section 268.105. 
33.6 		Subd. 3b.Limitations on applications and benefit accounts. (a) An application for 
33.7 	unemployment benefits is effective the Sunday of the calendar week that the application 
33.8 	was filed. An application for unemployment benefits may be backdated one calendar week 
33.9 	before the Sunday of the week the application was actually filed if the applicant requests 
33.10 	the backdating at the time the application is filed. An application may be backdated only if 
33.11 	the applicant had no employment during the period of the backdating. If an individual 
33.12 	attempted to file an application for unemployment benefits, but was prevented from filing 
33.13 	an application by the department, the application is effective the Sunday of the calendar 
33.14 	week the individual first attempted to file an application.
33.15 	(b) A benefit account established under subdivision 2 is effective the date the 
33.16 	application for unemployment benefits was effective.
33.17 	(c) A benefit account, once established, may later be withdrawn only if:
33.18 	(1) the applicant has not been paid any unemployment benefits on that benefit 
33.19 	account; and
33.20 	(2) a new application for unemployment benefits is filed and a new benefit account is 
33.21 	established at the time of the withdrawal.
33.22 	A determination or amended determination of eligibility or ineligibility issued under 
33.23 	section 268.101, that was sent before the withdrawal of the benefit account, remains in 
33.24 	effect and is not voided by the withdrawal of the benefit account. A determination of 
33.25 	ineligibility requiring subsequent earnings to satisfy the period of ineligibility under 
33.26 	section 268.095, subdivision 10, applies to the weekly unemployment benefit amount on 
33.27 	the new benefit account.
33.28 	(d) An application for unemployment benefits is not allowed before the Sunday 
33.29 	following the expiration of the benefit year on a prior benefit account. Except as allowed 
33.30 	under paragraph (c), an applicant may establish only one benefit account each 52 calendar 
33.31 	weeks.

33.32 	EFFECTIVE DATE. This section is effective the first Sunday following final 
33.33 	enactment.

33.34 	Sec. 10. Minnesota Statutes 2009 Supplement, section 268.085, subdivision 1, is 
33.35 	amended to read:
34.1 		Subdivision 1.Eligibility conditions. An applicant may be eligible to receive 
34.2 	unemployment benefits for any week if:
34.3 	(1) the applicant has filed a continued request for unemployment benefits for that 
34.4 	week under section 268.0865;
34.5 	(2) the week for which unemployment benefits are requested is in the applicant's 
34.6 	benefit year;
34.7 	(3) the applicant was unemployed as defined in section 268.035, subdivision 26;
34.8 	(4) the applicant was available for suitable employment as defined in subdivision 
34.9 	15. The applicant's weekly unemployment benefit amount is reduced one-fifth for each 
34.10 	day the applicant is unavailable for suitable employment. This clause does not apply to 
34.11 	an applicant who is in reemployment assistance training, or each day the applicant is on 
34.12 	jury duty or serving as an election judge;
34.13 	(5) the applicant was actively seeking suitable employment as defined in subdivision 
34.14 	16. This clause does not apply to an applicant who is in reemployment assistance training 
34.15 	or who was on jury duty throughout the week;
34.16 	(6) the applicant has served a nonpayable waiting period of one week that the 
34.17 	applicant is otherwise entitled to some amount of unemployment benefits. This clause 
34.18 	does not apply if the applicant would have been entitled to federal disaster unemployment 
34.19 	assistance because of a disaster in Minnesota, but for the applicant's establishment of a 
34.20 	benefit account under section 268.07; and
34.21 	(7) the applicant has been participating in reemployment assistance services, such 
34.22 	as job search and resume writing classes, if the applicant has been determined in need 
34.23 	of reemployment assistance services by the commissioner, unless the applicant has good 
34.24 	cause for failing to participate.

34.25 	Sec. 11. Minnesota Statutes 2008, section 268.085, subdivision 9, is amended to read:
34.26 		Subd. 9.Business owners. (a) Wage credits from an employer may not be used 
34.27 	for unemployment benefit purposes by any applicant who:
34.28 	(1) individually, jointly, or in combination with the applicant's spouse, parent, or 
34.29 	child owns or controls directly or indirectly 25 percent or more interest in the employer; or
34.30 	(2) is the spouse, parent, or minor child of any individual who owns or controls 
34.31 	directly or indirectly 25 percent or more interest in the employer.
34.32 	This subdivision is effective when the applicant has been paid five times the 
34.33 	applicant's weekly unemployment benefit amount in the current benefit year. This 
34.34 	subdivision does not apply if the applicant had wages paid in covered employment of 
34.35 	$7,500 or more from the employer covered by this subdivision in each of the 16 calendar 
35.1 	quarters prior to the effective date of the benefit account and all taxes due on those wages 
35.2 	have been paid.
35.3 	(b) An officer of a taxpaying employer referred to in section 268.046, subdivision 1, 
35.4 	is subject to the limitations of this subdivision.

35.5 	Sec. 12. Minnesota Statutes 2009 Supplement, section 268.136, subdivision 1, is 
35.6 	amended to read:
35.7 		Subdivision 1.Shared work agreement requirements. (a) An employer may 
35.8 	submit a proposed shared work plan for an employee group to the commissioner for 
35.9 	approval in a manner and format set by the commissioner. The proposed agreement 
35.10 	must include:
35.11 	(1) a certified statement that the normal weekly hours of work of all of the proposed 
35.12 	participating employees were full time but are now reduced, or will be reduced, with a 
35.13 	corresponding reduction in pay, in order to prevent layoffs;
35.14 	(2) the name and Social Security number of each participating employee;
35.15 	(3) a certified statement of when each participating employee was first hired by the 
35.16 	employer, which must be at least one year before the proposed agreement is submitted;
35.17 	(4) the hours of work each participating employee will work each week for the 
35.18 	duration of the agreement, which must be at least 20 hours and no more than 32 hours 
35.19 	per week, except that the agreement may provide for a uniform vacation shutdown of up 
35.20 	to two weeks;
35.21 	(5) the proposed duration of the agreement, which must be at least two months and 
35.22 	not more than one year, although an agreement may be extended for up to an additional 
35.23 	year upon approval of the commissioner;
35.24 	(6) a starting date beginning on a Sunday at least 15 calendar days after the date 
35.25 	the proposed agreement is submitted; and
35.26 	(7) a signature of an owner or officer of the employer who is listed as an owner or 
35.27 	officer on the employer's account under section 268.045.
35.28 	(b) An agreement may not be approved for an employer that:
35.29 	(1) has any unemployment tax or reimbursements, including any interest, fees, 
35.30 	or penalties, due but unpaid; or
35.31 	(2) has the maximum experience rating provided for under section 268.051, 
35.32 	subdivision 3; or
35.33 	(3) is in a high-experience rating industry as defined in section 268.051, subdivision 
35.34 	5.

36.1 	Sec. 13. SPECIAL STATE EXTENDED UNEMPLOYMENT INSURANCE 
36.2 	PROGRAM.
 36.3 		Subdivision 1.Eligibility. (a) Special state extended unemployment insurance 
36.4 	benefits are payable under this section to an applicant who does not qualify for extended 
36.5 	unemployment insurance benefits under Minnesota Statutes, section 268.115, solely 
36.6 	because the applicant does not have wage credits of at least 40 times the applicant's 
36.7 	weekly benefit amount.
36.8 	(b) Except as provided in paragraph (a), all requirements for extended unemployment 
36.9 	benefits under Minnesota Statutes, section 268.115, and all other requirements of 
36.10 	Minnesota Statutes, chapter 268, must be met in order for an applicant to be eligible for 
36.11 	special state extended unemployment insurance benefits under this section.
36.12 	(c) Except as provided for in paragraph (d), special state extended unemployment 
36.13 	insurance benefits are payable in the same amounts, for the same duration, and for the 
36.14 	same time period as provided for under Minnesota Statutes, section 268.115.
36.15 	(d) The maximum amount of special state extended unemployment insurance 
36.16 	benefits under this section available to an applicant is reduced by the amount of special 
36.17 	state emergency unemployment insurance benefits paid the applicant under Laws 2009, 
36.18 	chapter 1, section 2.
36.19 		Subd. 2.Payment from trust fund. Special state extended unemployment 
36.20 	insurance benefits are payable from the Minnesota unemployment insurance trust fund. 
36.21 	Special state extended unemployment insurance benefits must not be used in computing 
36.22 	the future unemployment insurance tax rate of a taxpaying employer, and they must not be 
36.23 	charged to the reimbursing account of government or nonprofit employers.
36.24 		Subd. 3.Expiration. This section expires on March 26, 2011, and no benefits may 
36.25 	be paid under this section for a week beginning after that date.

36.26 	EFFECTIVE DATE. This section is effective June 30, 2010.

36.27 	Sec. 14. LEAVES OF ABSENCE.
 36.28 	Minnesota Statutes, section 268.088, applies to leaves of absence taken by workers 
36.29 	at the New Ulm location of 3M during 2009. The department must, notwithstanding 
36.30 	any prior determination or appeal decision, redetermine an applicant's entitlement to 
36.31 	unemployment benefits under this section.

36.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

37.1 	Sec. 15. SPECIAL STATE EMERGENCY UNEMPLOYMENT 
37.2 	COMPENSATION.
 37.3 	Notwithstanding the June 30, 2010, expiration date of Laws 2009, chapter 1, section 
37.4 	2, subdivision 4, if an applicant has received special state emergency unemployment 
37.5 	compensation under that law for a week beginning prior to June 30, 2010, but has not 
37.6 	exhausted the maximum amount available to the applicant under that law, the applicant 
37.7 	may continue to receive special state emergency unemployment compensation under 
37.8 	that law up to the applicant's determined maximum under that law. This section expires 
37.9 	March 26, 2011, and no benefits may be paid pursuant to this section for a week beginning 
37.10 	after that date.

37.11 	Sec. 16. NEW BENEFIT ACCOUNTS.
 37.12 	If an applicant establishes a new benefit account under Minnesota Statutes, section 
37.13 	268.07, subdivision 2, paragraph (b), within 39 weeks of the expiration of the benefit 
37.14 	year on a prior benefit account, notwithstanding Minnesota Statutes, section 268.07, 
37.15 	subdivision 2a, paragraph (a), the weekly benefit amount on the new benefit account will 
37.16 	not be less than 80 percent of the weekly benefit amount on the prior benefit account. 

37.17 	EFFECTIVE DATE. This section applies to benefit accounts effective on or after 
37.18 	the first Sunday following enactment and expires the earlier of: (1) the effective date of 
37.19 	any federal legislation allowing an applicant to continue to collect federal emergency 
37.20 	unemployment compensation, notwithstanding the applicant qualifying for a new regular 
37.21 	state benefit account under Minnesota Statutes, section 268.07, subdivision 2, paragraph 
37.22 	(b); or (2) June 30, 2011.

37.23 	Sec. 17. REVISOR'S INSTRUCTION.
 37.24 	The revisor of statutes shall renumber each section of Minnesota Statutes listed in 
37.25 	column A with the number in column B.

37.26		Column A
	Column B
	
37.27		268.035, subdivision 12b
	268.035, subdivision 12d
	
37.28		268.035, subdivision 21a
	268.035, subdivision 21c
	
37.29		268.035, subdivision 20a
	268.035, subdivision 21b
	
37.30		268.035, subdivision 25a
	268.035, subdivision 25c

38.1 	ARTICLE 3
38.2 	LABOR STANDARDS AND WAGES; LICENSING AND FEES

38.3 	Section 1. [184B.20] INFLATABLE AMUSEMENT EQUIPMENT.
38.4 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in 
38.5 	this subdivision have the meanings given.
38.6 	(b) "Commercial use" means regular use of an inflatable for profit by an owner 
38.7 	at a permanently located facility:
38.8 	(1) to which the general public is invited; or
38.9 	(2) which the owner makes available at that facility for private parties or other events.
38.10 	"Commercial use" does not include use of an inflatable (i) at a carnival, festival, fair, 
38.11 	private party, or similar venue at a location other than the permanently located facility, or 
38.12 	(ii) at a facility where the use of the inflatable is incidental to the primary use of the facility.
38.13 	(c) "Inflatable" means an amusement device, used to bounce or otherwise play on, 
38.14 	that incorporates a structural and mechanical system and employs a high-strength fabric or 
38.15 	film that achieves its strength, shape, and stability by tensioning from internal air pressure.
38.16 	(d) "Owner" means a person who owns, leases as lessee, or controls the operation of 
38.17 	an inflatable for commercial use.
38.18 	(e) "Person" has the meaning given in section 302A.011, subdivision 22.
38.19 	(f) "Supervisor" means an individual stationed within close proximity to an inflatable 
38.20 	during its use, for the purpose of supervising its safe use.
38.21 	(g) "Trained" means that an individual has received instruction in how to supervise 
38.22 	the safe use of inflatables in accordance with industry and ASTM standards.
38.23 		Subd. 2.Prohibition. No owner shall provide an inflatable for commercial use in 
38.24 	this state by others unless the owner complies with this section.
38.25 		Subd. 3.Protection against injuries from falls. An inflatable that is in commercial 
38.26 	use must be placed in a manner that complies with ASTM Standard F 2374.07, adopted 
38.27 	by the American Society for Testing and Materials, including any future updates to that 
38.28 	standard.
38.29 		Subd. 4.Supervision by trained person required. No owner of an inflatable shall 
38.30 	allow commercial use of the inflatable unless a trained supervisor is present in close 
38.31 	proximity to the inflatable and is actively supervising its use. The ratio of supervisors to 
38.32 	inflatables must comply with ASTM Standard F 2374.07, as referenced under subdivision 
38.33 	3.
38.34 		Subd. 5.Insurance required; waiver of liability limited. (a) An owner of an 
38.35 	inflatable that is subject to subdivision 2 shall maintain liability insurance covering 
39.1 	liability for a death or injury resulting from commercial use of the inflatable with limits of 
39.2 	no less than $1,000,000 per occurrence and $2,000,000 aggregate per year. The insurance 
39.3 	shall also include medical payments coverage of no less than $5,000 per occurrence, 
39.4 	which may be limited to injuries incurred while using an inflatable, including getting on or 
39.5 	off of the inflatable. The insurance must be issued by an insurance company authorized to 
39.6 	issue the coverage in this state by the commissioner of commerce, and must be kept in 
39.7 	force during the entire period of registration. In the event of a policy cancellation, the 
39.8 	insurer will send written notice to the commissioner of labor and industry at the same time 
39.9 	that a cancellation request is received from or a notice is sent to the insured. 
39.10 	(b) A waiver of liability signed by or on behalf of a minor for injuries arising out of 
39.11 	the negligence of the owner or the owner's employee or designee is void.
39.12 		Subd. 6.Registration required. An owner of an inflatable that is subject to 
39.13 	subdivision 2 must obtain and maintain a current registration with the commissioner of 
39.14 	labor and industry. The registration information must include the name, address, telephone 
39.15 	number, and e-mail address of the owner, the street address of each facility at which 
39.16 	the owner regularly provides inflatables for commercial use in this state by others, and 
39.17 	a current insurance certificate of coverage proving full compliance with subdivision 5. 
39.18 	The commissioner shall issue and renew a certificate of registration only to owners who 
39.19 	comply with this section. The commissioner shall charge a registration fee of $100 for 
39.20 	a two-year registration designed to cover the cost of registration and enforcement. Fee 
39.21 	receipts must be deposited in the state treasury and credited to the construction code 
39.22 	fund. The registration certificate shall be issued and renewed for a two-year period. 
39.23 	The registrant shall promptly notify the commissioner in writing of any changes in the 
39.24 	registration information required in this subdivision.
39.25 		Subd. 7.Enforcement. The commissioner of labor and industry shall enforce this 
39.26 	section and may use for that purpose section 326B.082 and any powers otherwise available 
39.27 	to the commissioner for enforcement purposes, including suspension or revocation of the 
39.28 	person's registration and assessment of fines.

39.29 	EFFECTIVE DATE. This section is effective August 1, 2010.

39.30 	Sec. 2. [326B.091] DEFINITIONS.
39.31 		Subdivision 1.Applicability. For purposes of sections 326B.091 to 326B.098, the 
39.32 	terms defined in this section have the meanings given them.
39.33 		Subd. 2.Applicant. "Applicant" means a person who has submitted to the 
39.34 	department an application for a license.
40.1 		Subd. 3.License. "License" means any registration, certification, or other form 
40.2 	of approval authorized by chapters 326B and 327B to be issued by the commissioner 
40.3 	or department as a condition of doing business or conducting a trade, profession, 
40.4 	or occupation in Minnesota. License includes specifically but not exclusively an 
40.5 	authorization issued by the commissioner or department: to perform electrical work, 
40.6 	plumbing or water conditioning work, high pressure piping work, or residential building 
40.7 	work of a residential contractor, residential remodeler, or residential roofer; to install 
40.8 	manufactured housing; to serve as a building official; or to operate a boiler or boat.
40.9 		Subd. 4.Licensee. "Licensee" means the person named on the license as the person 
40.10 	authorized to do business or conduct the trade, profession, or occupation in Minnesota.
40.11 		Subd. 5.Notification date. "Notification date" means the date of the written 
40.12 	notification from the department to an applicant that the applicant is qualified to take the 
40.13 	examination required for licensure.
40.14 		Subd. 6.Renewal deadline. "Renewal deadline," when used with respect to a 
40.15 	license, means 30 days before the date that the license expires.

40.16 	EFFECTIVE DATE. This section is effective January 1, 2012.

40.17 	Sec. 3. [326B.092] FEES.
40.18 		Subdivision 1.Licenses requiring examination administered by commissioner.
 40.19 	(a) If the applicant for a license must pass an examination administered by the 
40.20 	commissioner in order to obtain the license, then the application for the initial license 
40.21 	must be accompanied by an application and examination fee of $50, which is separate 
40.22 	from the license fee. The license fee is due after the applicant passes the examination 
40.23 	and before the license is issued.
40.24 	(b) If the applicant for a Minnesota license holds a license in another state and 
40.25 	is seeking Minnesota licensure without examination based on reciprocity, then the 
40.26 	application for the Minnesota license must be accompanied by the application and 
40.27 	examination fee of $50, which is separate from the license fee. If the commissioner 
40.28 	approves the application, then the license fee is due before the license is issued.
40.29 		Subd. 2.Licenses not requiring examination administered by commissioner.
 40.30 	If the applicant for a license is not required to pass an examination in order to obtain the 
40.31 	license, or is required to pass an examination that is not administered by the commissioner, 
40.32 	then the license fee must accompany the application for the license. If the application is 
40.33 	for a license issued under sections 326B.802 to 326B.885 and is not an application for 
40.34 	license renewal, then the contractor recovery fund fee required under section 326B.89, 
41.1 	subdivision 3, is due after the department has determined that the applicant meets the 
41.2 	qualifications for licensing and before the license is issued.
41.3 		Subd. 3.Late fee. The department must receive a complete application for license 
41.4 	renewal by the renewal deadline but not more than 90 days before the renewal deadline. If 
41.5 	the department receives a renewal application after the expiration of the license, then the 
41.6 	renewal application must be accompanied by a late fee equal to one-half of the license 
41.7 	renewal fee; except that, for the purpose of calculating the late fee only, the license 
41.8 	renewal fee shall not include any contractor recovery fund fee required by section 
41.9 	326B.89, subdivision 3.
41.10 		Subd. 4.Lapsed licensed fee. If the department receives a renewal application 
41.11 	within two years after expiration of the license, the renewal application must be 
41.12 	accompanied by all license renewal fees to cover the period that the license was expired, 
41.13 	plus the late fee described in subdivision 3 and the license renewal fee for the current 
41.14 	renewal period.
41.15 		Subd. 5.Insufficient fees. If the applicant does not include all required fees with 
41.16 	the application, then the application will be incomplete and the department will notify the 
41.17 	applicant of the amount of the deficiency.
41.18 		Subd. 6.Fees nonrefundable. Application and examination fees, license fees, 
41.19 	license renewal fees, and late fees are nonrefundable except for:
41.20 	(1) license renewal fees received more than two years after expiration of the license, 
41.21 	as described in section 326B.094, subdivision 2;
41.22 	(2) any overpayment of fees; and
41.23 	(3) if the license is not renewed, the contractor recovery fund fee and any additional 
41.24 	assessment paid under subdivision 7, paragraph (e).
41.25 		Subd. 7.License fees and license renewal fees. (a) The license fee for each license 
41.26 	except a renewed license shall be the base license fee plus any applicable board fee, as 
41.27 	set forth in this subdivision. The license renewal fee for each renewed license is the 
41.28 	base license fee plus any applicable board fee, continuing education fee, and contractor 
41.29 	recovery fund fee and additional assessment, as set forth in this subdivision.
41.30 	(b) For purposes of this section, "license duration" means the number of years for 
41.31 	which the license is issued except that:
41.32 	(1) if the initial license is not issued for a whole number of years, the license duration 
41.33 	shall be rounded up to the next whole number; and
41.34 	(2) if the department receives an application for license renewal after the renewal 
41.35 	deadline, license duration means the number of years for which the renewed license would 
42.1 	have been issued if the renewal application had been submitted on time and all other 
42.2 	requirements for renewal had been met.
42.3 	(c) The base license fee shall depend on whether the license is classified as an entry 
42.4 	level, master, journeyman, or business license, and on the license duration.  The base 
42.5 	license fee shall be: 

42.6	License Classification
	License Duration
		
42.7		1 Year
	2 Years
	3 Years
	
42.8	Entry level
	$10
	$20
	$30
	
42.9	Journeyman
	$20
	$40
	$60
	
42.10	Master
	$40
	$80
	$120
	
42.11	Business
	$90
	$180
	$270
	
42.12 	(d) If there is a continuing education requirement for renewal of the license, then 
42.13 	a continuing education fee must be included in the renewal license fee.  The continuing 
42.14 	education fee for all license classifications shall be:  $10 if the renewal license duration is 
42.15 	one year; $20 if the renewal license duration is two years; and $30 if the renewal license 
42.16 	duration is three years.
42.17 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 
42.18 	326B.93, then a board fee must be included in the license fee and the renewal license fee. 
42.19 	The board fee for all license classifications shall be: $4 if the license duration is one year; 
42.20 	$8 if the license duration is two years; and $12 if the license duration is three years.
42.21 	(f) If the application is for the renewal of a license issued under sections 326B.802 
42.22 	to 326B.885, then the contractor recovery fund fee required under section 326B.89, 
42.23 	subdivision 3, and any additional assessment required under section 326B.89, subdivision 
42.24 	16, must be included in the license renewal fee.

42.25 	EFFECTIVE DATE. This section is effective January 1, 2012.

42.26 	Sec. 4. [326B.093] LICENSES REQUIRING EXAMINATION ADMINISTERED 
42.27 	BY COMMISSIONER.
42.28 		Subdivision 1.Qualifications for examination. If the applicant for a license must 
42.29 	pass an examination administered by the commissioner in order to obtain the license, then 
42.30 	the applicant's complete application must demonstrate that the applicant is qualified to 
42.31 	take the examination. The applicant is qualified to take the examination if the applicant 
42.32 	meets all requirements for the license except for passing the examination.
42.33 		Subd. 2.Not qualified for examination. If the applicant is not qualified to take 
42.34 	the examination, then the commissioner must deny the application. The applicant may 
42.35 	subsequently submit another application, accompanied by the required fee.
43.1 		Subd. 3.Taking the examination. If the applicant is qualified to take the 
43.2 	examination, then the department must notify the applicant, and the applicant may 
43.3 	schedule a time to take the examination within one year after the notification date. If the 
43.4 	applicant does not take the examination at the scheduled time, the applicant may, one 
43.5 	time only, reschedule a time to take the examination on a date within one year after the 
43.6 	notification date. If the applicant fails to take the examination within one year after the 
43.7 	notification date, the commissioner must deny the application and the applicant forfeits the 
43.8 	application/examination fee. The applicant may subsequently submit another application, 
43.9 	accompanied by the required application/examination fee.
43.10 		Subd. 4.Examination results. If the applicant receives a passing score on the 
43.11 	examination and meets all other requirements for licensure, the commissioner must 
43.12 	approve the application and notify the applicant of the approval within 60 days of the date 
43.13 	of the passing score. The applicant must, within 90 days after the notification of approval, 
43.14 	pay the license fee. Upon receipt of the license fee, the commissioner must issue the 
43.15 	license. If the applicant does not pay the license fee within 90 days after the notification 
43.16 	of approval, the commissioner will rescind the approval and must deny the application. 
43.17 	If the applicant does not receive a passing score on the examination, the commissioner 
43.18 	must deny the application. If the application is denied because of the applicant's failure 
43.19 	to receive a passing score on the examination, then the applicant cannot submit a new 
43.20 	application for the license until at least 30 days after the notification of denial.

43.21 	EFFECTIVE DATE. This section is effective January 1, 2012.

43.22 	Sec. 5. [326B.094] RENEWAL OF LICENSES.
43.23 		Subdivision 1.Expiration of licenses. Unless and until the department or 
43.24 	commissioner issues a renewal of a license, the license expires on the expiration date 
43.25 	printed on the license. While the license is expired, the licensee cannot perform the 
43.26 	activities authorized by the license.
43.27 		Subd. 2.Availability of renewal. A licensee may apply to renew a license no later 
43.28 	than two years after the expiration of the license. If the department receives a complete 
43.29 	renewal application no later than two years after the expiration of the license, then the 
43.30 	department must approve or deny the renewal application within 60 days of receiving the 
43.31 	complete renewal application. If the department receives a renewal application more than 
43.32 	two years after the expiration of the license, the department must return the renewal 
43.33 	license fee to the applicant without approving or denying the application. If the licensee 
43.34 	wishes to obtain a valid license more than two years after expiration of the license, the 
43.35 	licensee must apply for a new license.
44.1 		Subd. 3.Deadline for avoiding license expiration. The department must receive 
44.2 	a complete application to renew a license no later than the renewal deadline. If the 
44.3 	department does not receive a complete application by the renewal deadline, the license 
44.4 	may expire before the department has either approved or denied the renewal application.

44.5 	EFFECTIVE DATE. This section is effective January 1, 2012.

44.6 	Sec. 6. [326B.095] INCOMPLETE LICENSE APPLICATIONS.
44.7 	This section applies to both applications for initial licenses and license renewal 
44.8 	applications. If the department determines that an application is incomplete, the 
44.9 	department must notify the applicant of the deficiencies that must be corrected in 
44.10 	order to complete the application. If the applicant wishes to complete the application, 
44.11 	the department must receive the completed application within 90 days after the date 
44.12 	the department mailed or delivered the incomplete application to the applicant. If the 
44.13 	department does not receive the completed application by this deadline, the commissioner 
44.14 	must deny the application and the applicant will forfeit all fees except as provided 
44.15 	in section 326B.092, subdivision 6. If the application is for license renewal and the 
44.16 	department receives the corrected application after the license has expired, then the 
44.17 	corrected application must be accompanied by the late fee.

44.18 	EFFECTIVE DATE. This section is effective January 1, 2012.

44.19 	Sec. 7. [326B.096] REINSTATEMENT OF LICENSES.
44.20 		Subdivision 1.Reinstatement after revocation. (a) If a license is revoked under 
44.21 	this chapter and if an applicant for a license needs to pass an examination administered by 
44.22 	the commissioner before becoming licensed, then, in order to have the license reinstated, 
44.23 	the person who holds the revoked license must:
44.24 	(1) retake the examination and achieve a passing score; and
44.25 	(2) meet all other requirements for an initial license, including payment of the 
44.26 	application and examination fee and the license fee. The person holding the revoked 
44.27 	license is not eligible for Minnesota licensure without examination based on reciprocity.
44.28 	(b) If a license is revoked under a chapter other than this chapter, then, in order to 
44.29 	have the license reinstated, the person who holds the revoked license must:
44.30 	(1) apply for reinstatement to the commissioner no later than two years after the 
44.31 	effective date of the revocation;
44.32 	(2) pay a $100 reinstatement application fee and any applicable renewal license 
44.33 	fee; and
45.1 	(3) meet all applicable requirements for licensure, except that, unless required by the 
45.2 	order revoking the license, the applicant does not need to retake any examination and does 
45.3 	not need to repay a license fee that was paid before the revocation.
45.4 		Subd. 2.Reinstatement after suspension. If a license is suspended, then, in order 
45.5 	to have the license reinstated, the person who holds the suspended license must:
45.6 	(1) apply for reinstatement to the commissioner no later than two years after the 
45.7 	completion of the suspension period;
45.8 	(2) pay a $100 reinstatement application fee and any applicable renewal license 
45.9 	fee; and
45.10 	(3) meet all applicable requirements for licensure, except that, unless required by the 
45.11 	order suspending the license, the applicant does not need to retake any examination and 
45.12 	does not need to repay a license fee that was paid before the suspension.
45.13 		Subd. 3.Reinstatement after voluntary termination. A licensee who is not an 
45.14 	individual may voluntarily terminate a license issued to the person under this chapter. If a 
45.15 	licensee has voluntarily terminated a license under this subdivision, then, in order to have 
45.16 	the license reinstated, the person who holds the terminated license must:
45.17 	(1) apply for reinstatement to the commissioner no later than the date that the license 
45.18 	would have expired if it had not been terminated;
45.19 	(2) pay a $100 reinstatement application fee and any applicable renewal license 
45.20 	fee; and
45.21 	(3) meet all applicable requirements for licensure, except that the applicant does not 
45.22 	need to repay a license fee that was paid before the termination.

45.23 	EFFECTIVE DATE. This section is effective January 1, 2012.

45.24 	Sec. 8. [326B.097] PROHIBITION OF TRANSFER.
45.25 	A licensee shall not transfer or sell any license.

45.26 	EFFECTIVE DATE. This section is effective January 1, 2012.

45.27 	Sec. 9. [326B.098] CONTINUING EDUCATION.
45.28 		Subdivision 1.Applicability. This section applies to seminars offered by 
45.29 	the department for the purpose of allowing licensees to meet continuing education 
45.30 	requirements for license renewal.
45.31 		Subd. 2.Rescheduling.  An individual who is registered with the department to 
45.32 	attend a seminar may reschedule one time only, to attend the same seminar on a date 
45.33 	within one year after the date of the seminar the individual was registered to attend.
46.1 		Subd. 3.Fees nonrefundable. All seminar fees paid to the department are 
46.2 	nonrefundable except for any overpayment of fees.

46.3 	EFFECTIVE DATE. This section is effective January 1, 2012.

46.4 	Sec. 10. Minnesota Statutes 2008, section 326B.133, subdivision 1, is amended to read:
46.5 		Subdivision 1. Designation.  Each municipality shall designate a building official to 
46.6 	administer the code. A municipality may designate no more than one building official 
46.7 	responsible for code administration defined by each certification category established in 
46.8 	rule created by statute or rule. Two or more municipalities may combine in the designation 
46.9 	of a building official for the purpose of administering the provisions of the code within 
46.10 	their communities. In those municipalities for which no building officials have been 
46.11 	designated, the state building official may use whichever state employees are necessary to 
46.12 	perform the duties of the building official until the municipality makes a temporary or 
46.13 	permanent designation. All costs incurred by virtue of these services rendered by state 
46.14 	employees must be borne by the involved municipality and receipts arising from these 
46.15 	services must be paid to the commissioner. 

46.16 	EFFECTIVE DATE. This section is effective January 1, 2012.

46.17 	Sec. 11. Minnesota Statutes 2008, section 326B.133, is amended by adding a 
46.18 	subdivision to read:
46.19 		Subd. 2a.Application; renewal; fees; expiration. (a) An applicant for certification 
46.20 	shall submit a completed application on a form approved by the commissioner to the 
46.21 	department. The commissioner shall review applications for compliance with the 
46.22 	requirements established by rule.
46.23 	(b) Application for initial certification or renewal certification as a building official, 
46.24 	building official-limited, or accessibility specialist shall be according to this section and 
46.25 	sections 326B.092 to 326B.095.
46.26 	(c) Fees shall be paid to the department according to section 326B.092.
46.27 	(d) Unless revoked or suspended under this chapter, all certifications issued or 
46.28 	renewed under this section expire two years from the date of original issuance and every 
46.29 	two years thereafter.

46.30 	EFFECTIVE DATE. This section is effective January 1, 2012.

46.31 	Sec. 12. Minnesota Statutes 2008, section 326B.133, subdivision 3, is amended to read:
47.1 		Subd. 3. Certification criteria. The commissioner shall by rule establish 
47.2 	certification criteria as proof of qualification pursuant to subdivision 2. The commissioner 
47.3 	may: 
47.4 	(1) develop and administer written and practical examinations to determine if a 
47.5 	person is qualified pursuant to subdivision 2 to be a building official; 
47.6 	(2) accept documentation of successful completion of testing programs developed 
47.7 	and administered by nationally recognized testing agencies, as proof of qualification 
47.8 	pursuant to subdivision 2; or 
47.9 	(3) determine qualifications by satisfactory completion of clause (2) and a mandatory 
47.10 	training program developed or approved by the commissioner. 
47.11 	Upon a determination of qualification under clause (1), (2), or (3), the commissioner 
47.12 	shall issue a certificate to the building official stating that the official is certified. Each 
47.13 	person applying for examination and certification pursuant to this section shall pay a 
47.14 	nonrefundable fee of $70. The commissioner or a designee may establish categories of 
47.15 	certification that will recognize the varying complexities of code enforcement in the 
47.16 	municipalities within the state. The commissioner shall provide educational programs 
47.17 	designed to train and assist building officials in carrying out their responsibilities. 

47.18 	EFFECTIVE DATE. This section is effective January 1, 2012.

47.19 	Sec. 13. Minnesota Statutes 2008, section 326B.133, is amended by adding a 
47.20 	subdivision to read:
47.21 		Subd. 3a.Certification categories. (a) If a municipality has adopted or adopts 
47.22 	the State Building Code, the responsibilities for code administration and enforcement 
47.23 	are under the authority of its designated building official or the certified building 
47.24 	official-limited.
47.25 	(b) Certified building official. This certification is identified as "certified building 
47.26 	official" on the certificate card. This certification is granted to an individual who has met 
47.27 	the certified building official requirements established by rule and passed the written 
47.28 	examination prepared by the state. A person with this certification may serve as the 
47.29 	designated building official for any municipality. For the purposes of calculating fees 
47.30 	under section 326B.092, certification as a building official is a master license.
47.31 	(c) Certified building official-limited. This certification is identified as "certified 
47.32 	building official-limited" on the certification card. This certification is granted to an 
47.33 	individual who has met the certified building official-limited requirements established by 
47.34 	rule and passed the written examination prepared by the state. An individual with this 
47.35 	certification may perform code administration for one- and two-family dwellings, their 
48.1 	accessory structures, and "exempt classes of buildings" as provided in Minnesota Rules, 
48.2 	part 1800.5000, of the Board of Architecture, Engineering, Land Surveying, Landscape 
48.3 	Architecture, Geoscience, and Interior Design, and "facilities for persons with physical 
48.4 	disabilities" that are governed by the State Building Code. Subject to the limitations of the 
48.5 	building official-limited certification, an individual with this certification may serve as 
48.6 	the designated building official for any municipality. Code administration for all other 
48.7 	buildings must be performed by a certified building official as defined in paragraph (b). A 
48.8 	certified building official-limited may conduct inspections for other structures regulated 
48.9 	by the State Building Code under the direction of a designated certified building official or 
48.10 	the state building official.
48.11 	Subject to all other certification requirements, as of January 1, 2012, valid Class I 
48.12 	certifications shall be included in the certified building official-limited category upon the 
48.13 	next immediate renewal. For the purposes of calculating fees under section 326B.092, 
48.14 	certification as a building official-limited is a journeyman license.
48.15 	(d) Accessibility specialist. This certification is identified as accessibility specialist 
48.16 	on the certification card. This certification is granted to an individual who has met 
48.17 	the "accessibility specialist" requirements established by rule and passed the written 
48.18 	examination prepared by the state. An individual with this classification is limited to the 
48.19 	administration of those provisions of the State Building Code that provide access for 
48.20 	persons with disabilities. For the purposes of calculating fees under section 326B.092, 
48.21 	certification as an accessibility specialist is a journeyman license.

48.22 	EFFECTIVE DATE. This section is effective January 1, 2012.

48.23 	Sec. 14. Minnesota Statutes 2008, section 326B.133, subdivision 8, is amended to read:
48.24 		Subd. 8. Continuing education requirements; extension of time. (a) This 
48.25 	subdivision establishes the number of continuing education units required within each 
48.26 	two-year certification period.
48.27 	A certified building official shall accumulate 16 continuing education units in any 
48.28 	education program that is approved under Minnesota Rules, part 1301.1000.
48.29 	A certified building official-limited shall, in each year of the initial two-year 
48.30 	certification period, accumulate eight continuing education units in any education program 
48.31 	that is approved under Minnesota Rules, part 1301.1000. Continuing education units 
48.32 	shall be reported annually during the initial two-year certification period by the method 
48.33 	established in rule. A certified building official-limited shall accumulate 16 continuing 
48.34 	education units for each two-year certification period thereafter in any education program 
48.35 	that is approved under Minnesota Rules, part 1301.1000.
49.1 	An accessibility specialist must accumulate four continuing education units in any 
49.2 	of the programs described in Minnesota Rules, part 1301.1000, subpart 1 or 2. The four 
49.3 	units must be for courses relating to building accessibility, plan review, field inspection, 
49.4 	or building code administration.
49.5 	Continuing education programs may be approved as established in rule.
49.6 	(b) Subject to sections 326B.101 to 326B.194, the commissioner may by rule 
49.7 	establish or approve continuing education programs for certified building officials dealing 
49.8 	with matters of building code administration, inspection, and enforcement. 
49.9 	Each person certified as a building official for the state must satisfactorily complete 
49.10 	applicable educational programs established or approved by the commissioner to retain
49.11 	renew certification.
49.12 	(c) The state building official may grant an extension of time to comply with 
49.13 	continuing education requirements if the certificate holder requesting the extension of 
49.14 	time shows cause for the extension. The request for the extension must be in writing. For 
49.15 	purposes of this section, the certificate holder's current certification effective dates shall 
49.16 	remain the same. The extension does not relieve the certificate holder from complying 
49.17 	with the continuing education requirements for the next two-year period.

49.18 	EFFECTIVE DATE. This section is effective January 1, 2012.

49.19 	Sec. 15. Minnesota Statutes 2008, section 326B.133, subdivision 11, is amended to 
49.20 	read:
49.21 		Subd. 11. Failure to renew. An individual who has failed to make a timely 
49.22 	application for renewal of a certificate is not certified and must not serve as the designated 
49.23 	building official for any municipality, or a certified building official, a certified building 
49.24 	official-limited, or an accessibility specialist until a renewed certificate has been issued by 
49.25 	the commissioner. 

49.26 	EFFECTIVE DATE. This section is effective January 1, 2012.

49.27 	Sec. 16. Minnesota Statutes 2008, section 326B.197, is amended to read:
49.28 	326B.197 BOND REQUIRED FOR CERTAIN CONTRACTORS.
49.29 	(a) A person contracting to do gas, heating, ventilation, cooling, air conditioning, 
49.30 	fuel burning, or refrigeration work must give and maintain bond to the state in the amount 
49.31 	of $25,000 for all work entered into within the state. The bond must be for the benefit of 
49.32 	persons suffering financial loss by reason of the contractor's failure to comply with the 
49.33 	requirements of the State Mechanical Code. A bond given to the state must be filed with 
50.1 	the commissioner of labor and industry and is in lieu of all other bonds to any political 
50.2 	subdivision required for work covered by this section. The bond must be written by a 
50.3 	corporate surety licensed to do business in the state.
50.4 	(b) The commissioner of labor and industry may charge each person giving bond 
50.5 	under this section an annual a biennial bond filing fee of $15 $100. 

50.6 	EFFECTIVE DATE. This section is effective January 1, 2012.

50.7 	Sec. 17. Minnesota Statutes 2008, section 326B.33, subdivision 18, is amended to read:
50.8 		Subd. 18.Examination. In addition to the other requirements described in this 
50.9 	section and sections 326B.091 to 326B.098, and except as provided in subdivision 20, as a 
50.10 	precondition to issuance of a personal license, each applicant must pass a written or oral 
50.11 	examination developed and administered by the commissioner to ensure the competence of 
50.12 	each applicant for license. An oral examination shall be administered only to an applicant 
50.13 	who furnishes a written statement from a certified teacher or other professional, trained in 
50.14 	the area of reading disabilities stating that the applicant has a specific reading disability 
50.15 	which would prevent the applicant from performing satisfactorily on a written test. The 
50.16 	oral examination shall be structured so that an applicant who passes the examination 
50.17 	will not impair the applicant's own safety or that of others while acting as a licensed 
50.18 	individual. No individual failing an examination may retake it for six months thereafter, 
50.19 	but within such six months the individual may take an examination for a lesser grade of 
50.20 	license. Any individual failing to renew a personal license for two years or more after its 
50.21 	expiration, and any licensee whose personal license is revoked under this chapter, shall 
50.22 	be required to retake the examination before being issued a new license. An individual 
50.23 	whose personal license is revoked under any other chapter is not required to retake the 
50.24 	examination before being issued a new license, unless the personal license was revoked 
50.25 	two years or more before the commissioner received the completed application for a new 
50.26 	license. A licensee whose personal license is suspended for any reason is not required to 
50.27 	retake the examination before the personal license is reinstated, unless the personal license 
50.28 	has not been reinstated within two years after the suspension began.
50.29 	An applicant for a personal license shall submit to the commissioner an application 
50.30 	and examination fee at the time of application. Upon approval of the application, the 
50.31 	commissioner shall schedule the applicant for the next available examination, which shall 
50.32 	be held within 60 days. The applicant shall be allowed one opportunity to reschedule 
50.33 	an examination without being required to submit another application and examination 
50.34 	fee. Additionally, an applicant who fails an examination, or whose application was not 
50.35 	approved, shall submit another application and examination fee.

51.1 	EFFECTIVE DATE. This section is effective January 1, 2012.

51.2 	Sec. 18. Minnesota Statutes 2009 Supplement, section 326B.33, subdivision 19, 
51.3 	is amended to read:
51.4 		Subd. 19.License, registration, and renewal fees; expiration.  (a) Unless 
51.5 	revoked or suspended under this chapter, all licenses issued or renewed under this section 
51.6 	expire on the date specified in this subdivision. Master licenses expire March 1 of each 
51.7 	odd-numbered year after issuance or renewal. Electrical contractor licenses expire March 
51.8 	1 of each even-numbered year after issuance or renewal. Technology system contractor 
51.9 	licenses expire August 1 of each even-numbered year after issuance or renewal. All 
51.10 	other personal licenses expire two years from the date of original issuance and every two 
51.11 	years thereafter. Registrations of unlicensed individuals expire one year from the date of 
51.12 	original issuance and every year thereafter.
51.13 	(b) Fees for application and examination, and for the original issuance and each 
51.14 	subsequent renewal, are:
51.15 	(1) For each personal license application and examination: $35;
51.16 	(2) For original issuance and each subsequent renewal of:
51.17 	Class A Master or master special electrician, including master elevator constructor: 
51.18 	$40 per year;
51.19 	Class B Master: $25 per year;
51.20 	Power Limited Technician: $15 per year;
51.21 	Class A Journeyman, Class B Journeyman, Installer, Elevator Constructor, Lineman, 
51.22 	or Maintenance Electrician other than master special electrician: $15 per year;
51.23 	Contractor: $100 per year;
51.24 	Unlicensed individual registration: $15 per year.
51.25 	(c) If any new license is issued in accordance with this subdivision for less than two 
51.26 	years, the fee for the license shall be prorated on an annual basis.
51.27 	(d) A license fee may not be refunded after a license is issued or renewed. However, 
51.28 	if the fee paid for a license was not prorated in accordance with this subdivision, the 
51.29 	amount of the overpayment shall be refunded.
51.30 	(e) Any contractor who seeks reissuance of a license after it has been revoked or 
51.31 	suspended under this chapter shall submit a reissuance fee of $100 before the license is 
51.32 	reinstated.
51.33 	(f) An individual or contractor who fails to renew a license before 30 days after the 
51.34 	expiration or registration of the license must submit a late fee equal to one year's license 
51.35 	fee in addition to the full renewal fee. Fees for renewed licenses or registrations are not 
52.1 	prorated. An individual or contractor that fails to renew a license or registration by the 
52.2 	expiration date is unlicensed until the license or registration is renewed.
52.3 	(b) For purposes of calculating license fees and renewal license fees required under 
52.4 	section 326B.092:
52.5 	(1) the registration of an unlicensed individual under subdivision 12 shall be 
52.6 	considered an entry level license;
52.7 	(2) the following licenses shall be considered journeyman licenses: Class A 
52.8 	journeyman electrician, Class B journeyman electrician, Class A installer, Class B installer, 
52.9 	elevator constructor, lineman, maintenance electrician, and power limited technician;
52.10 	(3) the following licenses shall be considered master licenses: Class A master 
52.11 	electrician, Class B master electrician, and master elevator constructor; and
52.12 	(4) the following licenses shall be considered business licenses: Class A electrical 
52.13 	contractor, Class B electrical contractor, elevator contractor, and technology systems 
52.14 	contractor.
52.15 	(c) For each filing of a certificate of responsible person by an employer, the fee is 
52.16 	$100.

52.17 	EFFECTIVE DATE. This section is effective January 1, 2012.

52.18 	Sec. 19. Minnesota Statutes 2008, section 326B.33, subdivision 20, is amended to read:
52.19 		Subd. 20.Reciprocity.  The commissioner may enter into reciprocity agreements 
52.20 	for personal licenses with another state if approved by the board. Once approved by the 
52.21 	board, the commissioner may issue a personal license without requiring the applicant to 
52.22 	pass an examination provided the applicant:
52.23 	(a) submits an application under this section;
52.24 	(b) pays the application and examination fee and license fee required under this
52.25 	section 326B.092; and
52.26 	(c) holds a valid comparable license in the state participating in the agreement.
52.27 	Agreements are subject to the following:
52.28 	(1) The parties to the agreement must administer a statewide licensing program that 
52.29 	includes examination and qualifying experience or training comparable to Minnesota's.
52.30 	(2) The experience and training requirements under which an individual applicant 
52.31 	qualified for examination in the qualifying state must be deemed equal to or greater than 
52.32 	required for an applicant making application in Minnesota at the time the applicant 
52.33 	acquired the license in the qualifying state.
52.34 	(3) The applicant must have acquired the license in the qualifying state through an 
52.35 	examination deemed equivalent to the same class of license examination in Minnesota. 
53.1 	A lesser class of license may be granted where the applicant has acquired a greater 
53.2 	class of license in the qualifying state and the applicant otherwise meets the conditions 
53.3 	of this subdivision.
53.4 	(4) At the time of application, the applicant must hold a valid license in the 
53.5 	qualifying state and have held the license continuously for at least one year before making 
53.6 	application in Minnesota.
53.7 	(5) An applicant is not eligible for a license under this subdivision if the applicant 
53.8 	has failed the same or greater class of license examination in Minnesota, or if the 
53.9 	applicant's license of the same or greater class has been revoked or suspended.
53.10 	(6) An applicant who has failed to renew a personal license for two years or more 
53.11 	after its expiration is not eligible for a license under this subdivision.

53.12 	EFFECTIVE DATE. This section is effective January 1, 2012.

53.13 	Sec. 20. Minnesota Statutes 2008, section 326B.33, subdivision 21, is amended to read:
53.14 		Subd. 21. Exemptions from licensing. (a) An individual who is a maintenance 
53.15 	electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 
53.16 	if: 
53.17 	(1) the individual is engaged in the maintenance and repair of electrical equipment, 
53.18 	apparatus, and facilities that are owned or leased by the individual's employer and that are 
53.19 	located within the limits of property operated, maintained, and either owned or leased by 
53.20 	the individual's employer; 
53.21 	(2) the individual is supervised by: 
53.22 	(i) the responsible master electrician for a contractor who has contracted with the 
53.23 	individual's employer to provide services for which a contractor's license is required; or 
53.24 	(ii) a licensed master electrician, a licensed maintenance electrician, an electrical 
53.25 	engineer, or, if the maintenance and repair work is limited to technology circuits or 
53.26 	systems work, a licensed power limited technician; and 
53.27 	(3) the individual's employer has filed on file with the commissioner a current 
53.28 	certificate of responsible person, signed by the responsible master electrician of the 
53.29 	contractor, the licensed master electrician, the licensed maintenance electrician, the 
53.30 	electrical engineer, or the licensed power limited technician, and stating that the person 
53.31 	signing the certificate is responsible for ensuring that the maintenance and repair work 
53.32 	performed by the employer's employees complies with the Minnesota Electrical Act and 
53.33 	the rules adopted under that act. The employer must pay a filing fee to file a certificate of 
53.34 	responsible person with the commissioner. The certificate shall expire two years from the 
53.35 	date of filing. In order to maintain a current certificate of responsible person, the employer 
54.1 	must resubmit a certificate of responsible person, with a filing fee, no later than two years 
54.2 	from the date of the previous submittal.
54.3 	(b) Employees of a licensed electrical or technology systems contractor or other 
54.4 	employer where provided with supervision by a master electrician in accordance with 
54.5 	subdivision 1, or power limited technician in accordance with subdivision 7, paragraph 
54.6 	(a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399 
54.7 	for the planning, laying out, installing, altering, and repairing of technology circuits or 
54.8 	systems except planning, laying out, or installing: 
54.9 	(1) in other than residential dwellings, class 2 or class 3 remote control circuits that 
54.10 	control circuits or systems other than class 2 or class 3, except circuits that interconnect 
54.11 	these systems through communication, alarm, and security systems are exempted from 
54.12 	this paragraph; 
54.13 	(2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing 
54.14 	physically unprotected circuits other than class 2 or class 3; or 
54.15 	(3) technology circuits or systems in hazardous classified locations as covered by 
54.16 	chapter 5 of the National Electrical Code. 
54.17 	(c) Companies and their employees that plan, lay out, install, alter, or repair class 
54.18 	2 and class 3 remote control wiring associated with plug or cord and plug connected 
54.19 	appliances other than security or fire alarm systems installed in a residential dwelling are 
54.20 	not required to hold a license under sections 326B.31 to 326B.399. 
54.21 	(d) Heating, ventilating, air conditioning, and refrigeration contractors and their 
54.22 	employees are not required to hold or obtain a license under sections 326B.31 to 326B.399 
54.23 	when performing heating, ventilating, air conditioning, or refrigeration work as described 
54.24 	in section 326B.38. 
54.25 	(e) Employees of any electrical, communications, or railway utility, cable 
54.26 	communications company as defined in section 238.02, or a telephone company as defined 
54.27 	under section 237.01 or its employees, or of any independent contractor performing work 
54.28 	on behalf of any such utility, cable communications company, or telephone company, shall 
54.29 	not be required to hold a license under sections 326B.31 to 326B.399: 
54.30 	(1) while performing work on installations, materials, or equipment which are owned 
54.31 	or leased, and operated and maintained by such utility, cable communications company, or 
54.32 	telephone company in the exercise of its utility, antenna, or telephone function, and which 
54.33 	(i) are used exclusively for the generation, transformation, distribution, transmission, 
54.34 	or metering of electric current, or the operation of railway signals, or the transmission 
54.35 	of intelligence and do not have as a principal function the consumption or use of electric 
55.1 	current or provided service by or for the benefit of any person other than such utility, cable 
55.2 	communications company, or telephone company, and 
55.3 	(ii) are generally accessible only to employees of such utility, cable communications 
55.4 	company, or telephone company or persons acting under its control or direction, and 
55.5 	(iii) are not on the load side of the service point or point of entrance for 
55.6 	communication systems; 
55.7 	(2) while performing work on installations, materials, or equipment which are a part 
55.8 	of the street lighting operations of such utility; or 
55.9 	(3) while installing or performing work on outdoor area lights which are directly 
55.10 	connected to a utility's distribution system and located upon the utility's distribution poles, 
55.11 	and which are generally accessible only to employees of such utility or persons acting 
55.12 	under its control or direction. 
55.13 	(f) An owner shall not be required to hold or obtain a license under sections 326B.31 
55.14 	to 326B.399. 

55.15 	EFFECTIVE DATE. This section is effective January 1, 2012.

55.16 	Sec. 21. Minnesota Statutes 2008, section 326B.42, is amended by adding a 
55.17 	subdivision to read:
55.18 		Subd. 1a.Contractor. "Contractor" means a person who performs or offers 
55.19 	to perform any plumbing work, with or without compensation, who is licensed as a 
55.20 	contractor by the commissioner. Contractor includes plumbing contractors and restricted 
55.21 	plumbing contractors.

55.22 	EFFECTIVE DATE. This section is effective January 1, 2012.

55.23 	Sec. 22. Minnesota Statutes 2008, section 326B.42, is amended by adding a 
55.24 	subdivision to read:
55.25 		Subd. 8.Plumbing contractor. "Plumbing contractor" means a licensed contractor 
55.26 	whose responsible licensed plumber is a licensed master plumber.

55.27 	EFFECTIVE DATE. This section is effective January 1, 2012.

55.28 	Sec. 23. Minnesota Statutes 2008, section 326B.42, is amended by adding a 
55.29 	subdivision to read:
55.30 		Subd. 9.Responsible licensed plumber. A contractor's "responsible licensed 
55.31 	plumber" means the licensed master plumber or licensed restricted master plumber 
55.32 	designated in writing by the contractor in the contractor's license application, or in another 
56.1 	manner acceptable to the commissioner, as the individual responsible for the contractor's 
56.2 	compliance with sections 326B.41 to 326B.49, all rules adopted under these sections and 
56.3 	sections 326B.50 to 326B.59, and all orders issued under section 326B.082.

56.4 	EFFECTIVE DATE. This section is effective January 1, 2012.

56.5 	Sec. 24. Minnesota Statutes 2008, section 326B.42, is amended by adding a 
56.6 	subdivision to read:
56.7 		Subd. 10.Restricted plumbing contractor. "Restricted plumbing contractor" 
56.8 	means a licensed contractor whose responsible licensed plumber is a licensed restricted 
56.9 	master plumber.

56.10 	EFFECTIVE DATE. This section is effective January 1, 2012.

56.11 	Sec. 25. Minnesota Statutes 2008, section 326B.44, is amended to read:
56.12 	326B.44 LOCAL REGULATIONS.
56.13 	 Any of the following entities may, by ordinance, adopt local regulations providing 
56.14 	for plumbing permits, approval of plans and specifications, and inspections of plumbing, 
56.15 	which regulations are not in conflict with the plumbing code: any city having a system 
56.16 	of waterworks or sewerage, regardless of population; any town having a population of 
56.17 	5,000 or more according to the last federal census, exclusive of any statutory cities 
56.18 	located therein; and the Metropolitan Airports Commission. No such entity shall prohibit 
56.19 	plumbers plumbing contractors licensed by the commissioner from engaging in or working 
56.20 	at the business of plumbing, except cities and statutory cities which, prior to April 21, 
56.21 	1933, by ordinance required the licensing of plumbers. No such entity shall require any 
56.22 	person who engages in the business of plumbing to post a bond as a prerequisite for 
56.23 	engaging in the business of plumbing, except the bond to the state required under section 
56.24 	326B.46 and except any performance bond required under a contract with the person 
56.25 	for the performance of plumbing work for the entity. No such entity shall require any 
56.26 	person who engages in the business of plumbing to maintain public liability insurance 
56.27 	as a prerequisite for engaging in the business of plumbing, except the insurance required 
56.28 	under section 326B.46 and except any public liability insurance required under a contract 
56.29 	with the person for the performance of plumbing work for the entity. No city or town may 
56.30 	require a license for persons performing building sewer or water service installation who 
56.31 	have completed pipe laying training as prescribed by the commissioner of labor and 
56.32 	industry. Any city by ordinance may prescribe regulations, reasonable standards, and 
56.33 	inspections and grant permits to any person engaged in the business of installing water 
57.1 	softeners, who is not licensed as a master plumber or journeyman plumber contractor by 
57.2 	the commissioner, to connect water softening and water filtering equipment to private 
57.3 	residence water distribution systems, where provision has been previously made therefor 
57.4 	and openings left for that purpose or by use of cold water connections to a domestic 
57.5 	water heater; where it is not necessary to rearrange, make any extension or alteration of, 
57.6 	or addition to any pipe, fixture or plumbing connected with the water system except to 
57.7 	connect the water softener, and provided the connections so made comply with minimum 
57.8 	standards prescribed by the Plumbing Board.

57.9 	EFFECTIVE DATE. This section is effective January 1, 2012.

57.10 	Sec. 26. Minnesota Statutes 2008, section 326B.46, as amended by Laws 2009, chapter 
57.11 	78, article 5, section 14, and chapter 109, section 13, is amended to read:
57.12 	326B.46 LICENSING, BOND AND INSURANCE.
57.13 		Subdivision 1.License required. (a) No person individual shall engage in or work 
57.14 	at the business of a master plumber, restricted master plumber, journeyman plumber, 
57.15 	and restricted journeyman plumber unless licensed to do so by the state commissioner. 
57.16 	A license is not required for individuals performing building sewer or water service 
57.17 	installation who have completed pipe laying training as prescribed by the commissioner 
57.18 	of labor and industry. A master plumber may also work as a journeyman plumber, a 
57.19 	restricted journeyman plumber, and a restricted master plumber. A journeyman plumber 
57.20 	may also work as a restricted journeyman plumber. Anyone not so licensed may do 
57.21 	plumbing work which complies with the provisions of the minimum standards prescribed 
57.22 	by the Plumbing Board on premises or that part of premises owned and actually occupied 
57.23 	by the worker as a residence, unless otherwise forbidden to do so by a local ordinance.
57.24 	(b) No person shall engage in the business of planning, superintending, or installing 
57.25 	plumbing or shall install plumbing in connection with the dealing in and selling of 
57.26 	plumbing material and supplies unless at all times a licensed master plumber, or in cities 
57.27 	and towns with a population of fewer than 5,000 according to the last federal census, a 
57.28 	restricted master plumber, who shall be responsible for proper installation, is in charge 
57.29 	of the plumbing work of the person, firm, or corporation.
57.30 	(c) Except as provided in subdivision 2, no person shall perform or offer to perform 
57.31 	plumbing work with or without compensation unless the person obtains a contractor's 
57.32 	license. A contractor's license does not of itself qualify its holder to perform the plumbing 
57.33 	work authorized by holding a master, journeyman, restricted master, or restricted 
57.34 	journeyman license.
58.1 		Subd. 1a.Exemptions from licensing. (a) An individual without a contractor 
58.2 	license may do plumbing work on the individual's residence in accordance with 
58.3 	subdivision 1, paragraph (a).
58.4 	(b) An individual who is an employee working on the maintenance and repair of 
58.5 	plumbing equipment, apparatus, or facilities owned or leased by the individual's employer 
58.6 	and which is within the limits of property owned or leased, and operated or maintained by 
58.7 	the individual's employer, shall not be required to maintain a contractor license as long 
58.8 	as the employer has on file with the commissioner a current certificate of responsible 
58.9 	person.  The certificate must be signed by the responsible master plumber or, in an area of 
58.10 	the state that is not a city or town with a population of more than 5,000 according to the 
58.11 	last federal census, restricted master plumber, and must state that the person signing the 
58.12 	certificate is responsible for ensuring that the maintenance and repair work performed by 
58.13 	the employer's employees comply with sections 326B.41 to 326B.49, all rules adopted 
58.14 	under those sections and sections 326B.50 to 326B.59, and all orders issued under section 
58.15 	326B.082. The employer must pay a filing fee to file a certificate of responsible person 
58.16 	with the commissioner. The certificate shall expire two years from the date of filing. In 
58.17 	order to maintain a current certificate of responsible person, the employer must resubmit a 
58.18 	certificate of responsible person, with a filing fee, no later than two years from the date of 
58.19 	the previous submittal. The filing of the certificate of responsible person does not exempt 
58.20 	any employee of the employer from the requirements of this chapter regarding individual 
58.21 	licensing as a plumber or registration as a plumber's apprentice.
58.22 	(c) If a contractor employs a licensed plumber, the licensed plumber does not need a 
58.23 	separate contractor license to perform plumbing work on behalf of the employer within 
58.24 	the scope of the licensed plumber's license.
58.25 		Subd. 1b.Employment of master plumber or restricted master plumber. (a) 
58.26 	Each contractor must designate a responsible licensed plumber, who shall be responsible 
58.27 	for the performance of all plumbing work in accordance with sections 326B.41 to 
58.28 	326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all 
58.29 	orders issued under section 326B.082. A plumbing contractor's responsible licensed 
58.30 	plumber must be a master plumber. A restricted plumbing contractor's responsible licensed 
58.31 	plumber must be a master plumber or a restricted master plumber. A plumbing contractor 
58.32 	license authorizes the contractor to offer to perform and, through licensed and registered 
58.33 	individuals, to perform plumbing work in all areas of the state. A restricted plumbing 
58.34 	contractor license authorizes the contractor to offer to perform and, through licensed and 
58.35 	registered individuals, to perform plumbing work in all areas of the state except in cities 
58.36 	and towns with a population of more than 5,000 according to the last federal census.
59.1 	(b) If the contractor is an individual or sole proprietorship, the responsible licensed 
59.2 	plumber must be the individual, proprietor, or managing employee. If the contractor is 
59.3 	a partnership, the responsible licensed plumber must be a general partner or managing 
59.4 	employee. If the contractor is a limited liability company, the responsible licensed plumber 
59.5 	must be a chief manager or managing employee. If the contractor is a corporation, the 
59.6 	responsible licensed plumber must be an officer or managing employee. If the responsible 
59.7 	licensed plumber is a managing employee, the responsible licensed plumber must be 
59.8 	actively engaged in performing plumbing work on behalf of the contractor, and cannot be 
59.9 	employed in any capacity as a plumber for any other contractor. An individual may be 
59.10 	the responsible licensed plumber for only one contractor.
59.11 	(c) All applications and renewals for contractor licenses shall include a verified 
59.12 	statement that the applicant or licensee has complied with this subdivision.
59.13 		Subd. 2.Bond; insurance. Any person contracting to do plumbing work must give
59.14 	As a condition of licensing, each contractor shall give and maintain bond to the state in the 
59.15 	amount of at least $25,000 for (1) all plumbing work entered into within the state or (2) 
59.16 	all plumbing work and subsurface sewage treatment work entered into within the state. 
59.17 	If the bond is for both plumbing work and subsurface sewage treatment work, the bond 
59.18 	must comply with the requirements of this section and section 115.56, subdivision 2, 
59.19 	paragraph (e). The bond shall be for the benefit of persons injured or suffering financial 
59.20 	loss by reason of failure to comply with the requirements of the State Plumbing Code and, 
59.21 	if the bond is for both plumbing work and subsurface sewage treatment work, financial 
59.22 	loss by reason of failure to comply with the requirements of sections 115.55 and 115.56. 
59.23 	The bond shall be filed with the commissioner and shall be written by a corporate surety 
59.24 	licensed to do business in the state. 
59.25 	In addition, each applicant for a master plumber license or restricted master plumber 
59.26 	license, or renewal thereof, shall provide evidence ofas a condition of licensing, each 
59.27 	contractor shall have and maintain in effect public liability insurance, including products 
59.28 	liability insurance with limits of at least $50,000 per person and $100,000 per occurrence 
59.29 	and property damage insurance with limits of at least $10,000. The insurance shall be 
59.30 	written by an insurer licensed to do business in the state of Minnesota and each licensed 
59.31 	master plumber shall maintain on file with the commissioner a certificate evidencing the 
59.32 	insurance providing that the insurance shall not be canceled without the insurer first giving 
59.33 	15 days written notice to the commissioner. The term of the insurance shall be concurrent 
59.34 	with the term of the license.
59.35 		Subd. 3.Bond and insurance exemption. If a master plumber or restricted master 
59.36 	plumber who is in compliance with the bond and insurance requirements of subdivision 2, 
60.1 	employs a licensed plumber, the employee plumber shall not be required to meet the bond 
60.2 	and insurance requirements of subdivision 2. An individual who is an employee working 
60.3 	on the maintenance and repair of plumbing equipment, apparatus, or facilities owned or 
60.4 	leased by the individual's employer and which is within the limits of property owned or 
60.5 	leased, and operated or maintained by the individual's employer, shall not be required to 
60.6 	meet the bond and insurance requirements of subdivision 2. 
60.7 		Subd. 4.Fee. (a) Each person giving bond to the state under subdivision 2 shall pay 
60.8 	the department a bond registration fee of $40 for one year or $80 for two years.
60.9 	(b) The commissioner shall in a manner determined by the commissioner, without 
60.10 	the need for any rulemaking under chapter 14, phase in the bond registration from one year 
60.11 	to two years so that the expiration of bond registration corresponds with the expiration of 
60.12 	the license issued under section 326B.475 or 326B.49, subdivision 1.
60.13 		Subd. 5. Exterior connections. Persons licensed as manufactured home installers 
60.14 	under chapter 327B are not required to be licensed under sections 326B.42 to 326B.49 
60.15 	when connecting the exterior building drain sewer outlets to the aboveground building 
60.16 	sewer system and when connecting the exterior water line to the aboveground water 
60.17 	system to the manufactured home as described in National Manufactured Housing 
60.18 	Construction and Safety Standards Act of 1974, United States Code, title 42, section 5401 
60.19 	et seq. No additional licensure, bond, or insurance related to the scope of work permitted 
60.20 	under this subdivision may be required of a licensed manufactured home installer by 
60.21 	any unit of government. 

60.22 	EFFECTIVE DATE. This section is effective January 1, 2012.

60.23 	Sec. 27. Minnesota Statutes 2008, section 326B.47, is amended to read:
60.24 	326B.47 PLUMBER'S APPRENTICES.
60.25 		Subdivision 1.Registration; supervision; records. (a) All plumber's apprentices 
60.26 	must be registered. To be a registered plumber's apprentice, an individual must either:
60.27 	(1) be an individual employed in the trade of plumbing under an apprenticeship 
60.28 	agreement approved by the department under Minnesota Rules, part 5200.0300; or
60.29 	(2) be an unlicensed individual registered with the commissioner under subdivision 
60.30 	3.
60.31 	(b) A plumber's apprentice is authorized to assist in the installation of plumbing 
60.32 	only while under the direct supervision of a master, restricted master, journeyman, or 
60.33 	restricted journeyman plumber. The master, restricted master, journeyman, or restricted 
60.34 	journeyman plumber is responsible for ensuring that all plumbing work performed by the 
61.1 	plumber's apprentice complies with the plumbing code. The supervising master, restricted 
61.2 	master, journeyman, or restricted journeyman must be licensed and must be employed 
61.3 	by the same employer as the plumber's apprentice. Licensed individuals shall not permit 
61.4 	plumber's apprentices to perform plumbing work except under the direct supervision of 
61.5 	an individual actually licensed to perform such work. Plumber's apprentices shall not 
61.6 	supervise the performance of plumbing work or make assignments of plumbing work 
61.7 	to unlicensed individuals.
61.8 	(c) Contractors employing plumber's apprentices to perform plumbing work shall 
61.9 	maintain records establishing compliance with this subdivision that shall identify all 
61.10 	plumber's apprentices performing plumbing work, and shall permit the department to 
61.11 	examine and copy all such records.
61.12 		Subd. 2.Journeyman exam. A plumber's apprentice who has completed four 
61.13 	years of practical plumbing experience is eligible to take the journeyman plumbing 
61.14 	examination. Up to 24 months of practical plumbing experience prior to becoming a 
61.15 	plumber's apprentice may be applied to the four-year experience requirement. However, 
61.16 	none of this practical plumbing experience may be applied if the individual did not have 
61.17 	any practical plumbing experience in the 12-month period immediately prior to becoming 
61.18 	a plumber's apprentice. The Plumbing Board may adopt rules to evaluate whether 
61.19 	the individual's past practical plumbing experience is applicable in preparing for the 
61.20 	journeyman's examination. If two years after completing the training the individual has 
61.21 	not taken the examination, the four years of experience shall be forfeited.
61.22 	The commissioner may allow an extension of the two-year period for taking the 
61.23 	exam for cases of hardship or other appropriate circumstances.
61.24 		Subd. 3.Registration, rules, applications, renewals, and fees.  An unlicensed 
61.25 	individual may register by completing and submitting to the commissioner a registration
61.26 	an application form provided by the commissioner, with all fees required by section 
61.27 	326B.092. A completed registration application form must state the date the individual 
61.28 	began training, the individual's age, schooling, previous experience, and employer, 
61.29 	and other information required by the commissioner. The board may prescribe rules, 
61.30 	not inconsistent with this section, for the registration of unlicensed individuals. Each 
61.31 	applicant for initial registration as a plumber's apprentice shall pay the department an 
61.32 	application fee of $25. Applications for initial registration may be submitted at any time. 
61.33 	Registration must be renewed annually and shall be for the period from July 1 of each year 
61.34 	to June 30 of the following year. Applications for renewal registration must be received 
61.35 	by the commissioner by June 30 of each registration period on forms provided by the 
61.36 	commissioner, and must be accompanied by a fee of $25. An application for renewal 
62.1 	registration received on or after July 1 in any year but no more than three months after 
62.2 	expiration of the previously issued registration must pay the past due renewal fee plus a 
62.3 	late fee of $25. No applications for renewal registration will be accepted more than three 
62.4 	months after expiration of the previously issued registration.

62.5 	EFFECTIVE DATE. This section is effective January 1, 2012.

62.6 	Sec. 28. Minnesota Statutes 2008, section 326B.475, subdivision 2, is amended to read:
62.7 		Subd. 2.Use of license. A restricted master plumber and restricted journeyman 
62.8 	plumber may engage in the plumbing trade in all areas of the state except in cities and 
62.9 	towns with a population of more than 5,000 according to the last federal census.

62.10 	EFFECTIVE DATE. This section is effective January 1, 2012.

62.11 	Sec. 29. Minnesota Statutes 2009 Supplement, section 326B.475, subdivision 4, 
62.12 	is amended to read:
62.13 		Subd. 4.Renewal; use period for license. (a) A restricted master plumber and 
62.14 	restricted journeyman plumber license must be renewed for as long as that licensee 
62.15 	engages in the plumbing trade. Notwithstanding section 326B.094, failure to renew a 
62.16 	restricted master plumber and restricted journeyman plumber license within 12 months 
62.17 	after the expiration date will result in permanent forfeiture of the restricted master plumber 
62.18 	and restricted journeyman plumber license.
62.19 	(b) The commissioner shall in a manner determined by the commissioner, without 
62.20 	the need for any rulemaking under chapter 14, phase in the renewal of restricted master 
62.21 	plumber and restricted journeyman plumber licenses from one year to two years. By 
62.22 	June 30, 2011, all restricted master plumber and restricted journeyman plumber licenses 
62.23 	shall be two-year licenses.

62.24 	EFFECTIVE DATE. This section is effective January 1, 2012.

62.25 	Sec. 30. Minnesota Statutes 2009 Supplement, section 326B.49, subdivision 1, is 
62.26 	amended to read:
62.27 		Subdivision 1.Application, examination, and license fees. (a) Applications for 
62.28 	master and journeyman plumber's license licenses shall be made to the commissioner, with 
62.29 	fee all fees required by section 326B.092. Unless the applicant is entitled to a renewal, 
62.30 	the applicant shall be licensed by the commissioner only after passing a satisfactory 
62.31 	examination developed and administered by the commissioner, based upon rules adopted 
62.32 	by the Plumbing Board, showing fitness. Examination fees for both journeyman and 
63.1 	master plumbers shall be $50 for each examination. Upon being notified of having 
63.2 	successfully passed the examination for original license the applicant shall submit an 
63.3 	application, with the license fee herein provided. The license fee for each initial master 
63.4 	plumber's license shall be $240. The license fee for each initial journeyman plumber's 
63.5 	license shall be $110.
63.6 	(b) All initial master and journeyman plumber's licenses shall be effective for more 
63.7 	than one calendar year and shall expire on December 31 of the year after the year in which 
63.8 	the application is made. The license fee for each renewal master plumber's license shall be 
63.9 	$120 for one year or $240 for two years. The license fee for each renewal journeyman 
63.10 	plumber's license shall be $55 for one year or $110 for two years.All master plumber's 
63.11 	licenses shall expire on December 31 of each even-numbered year after issuance or 
63.12 	renewal. The commissioner shall in a manner determined by the commissioner, without 
63.13 	the need for any rulemaking under chapter 14, phase in the renewal of master and 
63.14 	journeyman plumber's licenses from one year to two years. By June 30, 2011, all renewed 
63.15 	master and journeyman plumber's licenses shall be two-year licenses.
63.16 	(c) Any licensee who does not renew a license within two years after the license 
63.17 	expires is no longer eligible for renewal. Such an individual must retake and pass the 
63.18 	examination before a new license will be issued. A journeyman or master plumber who 
63.19 	submits a license renewal application after the time specified in rule but within two 
63.20 	years after the license expired must pay all past due renewal fees plus a late fee of $25.
63.21 	Applications for contractor licenses shall be made to the commissioner, with all fees 
63.22 	required by section 326B.092. All contractor licenses shall expire on December 31 of each 
63.23 	odd-numbered year after issuance or renewal.
63.24 	(d) For purposes of calculating license fees and renewal license fees required under 
63.25 	section 326B.092:
63.26 	(1) the following licenses shall be considered business licenses: plumbing contractor 
63.27 	and restricted plumbing contractor;
63.28 	(2) the following licenses shall be considered master licenses: master plumber and 
63.29 	restricted master plumber;
63.30 	(3) the following licenses shall be considered journeyman licenses: journeyman 
63.31 	plumber and restricted journeyman plumber; and
63.32 	(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3, 
63.33 	shall be considered an entry level license.
63.34 	(e) For each filing of a certificate of responsible person by an employer, the fee is 
63.35 	$100.

63.36 	EFFECTIVE DATE. This section is effective January 1, 2012.

64.1 	Sec. 31. Minnesota Statutes 2008, section 326B.50, is amended by adding a 
64.2 	subdivision to read:
64.3 		Subd. 1a.Responsible licensed master. "Responsible licensed master" means the 
64.4 	licensed water conditioning master or licensed master plumber designated in writing by 
64.5 	the water conditioning contractor in the water conditioning contractor's license application, 
64.6 	or in another manner acceptable to the commissioner, as the individual responsible for 
64.7 	the water conditioning contractor's compliance with sections 326B.50 to 326B.59, all 
64.8 	rules adopted under these sections, the Minnesota Plumbing Code, and all orders issued 
64.9 	under section 326B.082. 

64.10 	EFFECTIVE DATE. This section is effective January 1, 2012.

64.11 	Sec. 32. Minnesota Statutes 2008, section 326B.50, is amended by adding a 
64.12 	subdivision to read:
64.13 		Subd. 2a.Water conditioning contractor. "Water conditioning contractor" 
64.14 	means a person who performs or offers to perform any water conditioning installation or 
64.15 	water conditioning servicing, with or without compensation, who is licensed as a water 
64.16 	conditioning contractor by the commissioner.

64.17 	EFFECTIVE DATE. This section is effective January 1, 2012.

64.18 	Sec. 33. Minnesota Statutes 2008, section 326B.50, is amended by adding a 
64.19 	subdivision to read:
64.20 		Subd. 3a.Water conditioning journeyman. "Water conditioning journeyman" 
64.21 	means an individual, other than a water conditioning master, who has demonstrated 
64.22 	practical knowledge of water conditioning installation and servicing, and who is licensed 
64.23 	by the commissioner as a water conditioning journeyman.

64.24 	EFFECTIVE DATE. This section is effective January 1, 2012.

64.25 	Sec. 34. Minnesota Statutes 2008, section 326B.50, is amended by adding a 
64.26 	subdivision to read:
64.27 		Subd. 3b.Water conditioning master. "Water conditioning master" means 
64.28 	an individual who has demonstrated skill in planning, superintending, installing, and 
64.29 	servicing water conditioning installations, and who is licensed by the commissioner as a 
64.30 	water conditioning master.

64.31 	EFFECTIVE DATE. This section is effective January 1, 2012.

65.1 	Sec. 35. Minnesota Statutes 2008, section 326B.54, is amended to read:
65.2 	326B.54 VIOLATIONS TO BE REPORTED TO COMMISSIONER.
65.3 	Such local authority as may be designated by any such ordinance for the issuance 
65.4 	of such water conditioning installation and servicing permits and approval of such plans 
65.5 	shall report to the commissioner persistent or willful violations of the same and any 
65.6 	incompetence of a licensed water conditioning contractor, licensed water conditioning 
65.7 	master, or licensed water conditioning installer journeyman observed by the local authority.

65.8 	EFFECTIVE DATE. This section is effective January 1, 2012.

65.9 	Sec. 36. Minnesota Statutes 2008, section 326B.55, as amended by 2010 H.F. No. 927, 
65.10 	section 13, if enacted, is amended to read:
65.11 	326B.55 LICENSING IN CERTAIN CITIES; QUALIFICATIONS; RULES.
65.12 		Subdivision 1.Licensing. (a) Except as provided in paragraph (d), no individual 
65.13 	shall perform water conditioning installation or water conditioning servicing unless 
65.14 	licensed by the commissioner as a master plumber, journeyman plumber, water 
65.15 	conditioning master, or water conditioning journeyman, or, in all areas of the state except 
65.16 	in cities and towns with a population of more than 5,000 according to the last federal 
65.17 	census, as a restricted master plumber or restricted journeyman plumber.
65.18 	(b) Except as provided in paragraph (d), no person shall perform or offer to 
65.19 	perform water conditioning installation or water conditioning servicing with or without 
65.20 	compensation unless the person obtains a water conditioning contractor's license. A water 
65.21 	conditioning contractor's license does not of itself qualify its holder to perform the water 
65.22 	conditioning installation or water conditioning servicing authorized by holding a water 
65.23 	conditioning master or water conditioning journeyman license.
65.24 	(c) Except as provided in paragraph (d),  no person shall engage in or work at the 
65.25 	business of water conditioning installation or servicing anywhere in the state unless (1)
65.26 	at all times an individual licensed as a master plumber or water conditioning contractor
65.27 	master by the commissioner shall be, who is responsible for the proper installation and 
65.28 	servicing, is in charge of the water conditioning installation and servicing work of such 
65.29 	person, and (2) all installations, other than.
65.30 	If a water conditioning contractor employs a licensed master, restricted master, 
65.31 	journeyman or restricted journeyman plumber, or a licensed water conditioning master 
65.32 	or journeyman, then the licensed individual does not need a separate water conditioning 
65.33 	contractor license to perform water conditioning installation or servicing on behalf of the 
65.34 	employer within the scope of the individual's plumber license.
66.1 	(d) No water conditioning contractor, water conditioning master, or water 
66.2 	conditioning journeyman license is required:
66.3 	(1) for exchanges of portable water conditioning equipment, are performed by a 
66.4 	licensed water conditioning contractor or licensed water conditioning installer. Any 
66.5 	individual not so licensed may; or
66.6 	(2) for an individual to perform water conditioning work that complies with the 
66.7 	minimum standards prescribed by the Plumbing Board on premises or that part of 
66.8 	premises owned and occupied by the worker individual as a residence, unless otherwise 
66.9 	prohibited by a local ordinance.
66.10 		Subd. 2.Qualifications for licensing. (a) A water conditioning contractor master
66.11 	license shall be issued only to an individual who has demonstrated skill in planning, 
66.12 	superintending, and servicing water conditioning installations, and has successfully passed 
66.13 	the examination for water conditioning contractors masters. A water conditioning installer
66.14 	journeyman license shall only be issued to an individual other than a water conditioning 
66.15 	contractor master who has demonstrated practical knowledge of water conditioning 
66.16 	installation, and has successfully passed the examination for water conditioning installers
66.17 	journeymen. A water conditioning installer journeyman must successfully pass the 
66.18 	examination for water conditioning contractors masters before being licensed as a water 
66.19 	conditioning contractor master.
66.20 	(b) Each water conditioning contractor must designate a responsible licensed master 
66.21 	plumber or a responsible licensed water conditioning master, who shall be responsible 
66.22 	for the performance of all water conditioning installation and servicing in accordance 
66.23 	with the requirements of sections 326B.50 to 326B.59, all rules adopted under these 
66.24 	sections, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If 
66.25 	the water conditioning contractor is an individual or sole proprietorship, the responsible 
66.26 	licensed master must be the individual, proprietor, or managing employee. If the water 
66.27 	conditioning contractor is a partnership, the responsible licensed master must be a general 
66.28 	partner or managing employee. If the water conditioning contractor is a limited liability 
66.29 	company, the responsible licensed master must be a chief manager or managing employee. 
66.30 	If the water conditioning contractor is a corporation, the responsible licensed master must 
66.31 	be an officer or managing employee. If the responsible licensed master is a managing 
66.32 	employee, the responsible licensed master must be actively engaged in performing water 
66.33 	conditioning work on behalf of the water conditioning contractor, and cannot be employed 
66.34 	in any capacity as a water conditioning master or water conditioning journeyman for any 
66.35 	other water conditioning contractor. An individual must not be the responsible licensed 
66.36 	master for more than one water conditioning contractor.
67.1 	(c) All applications and renewals for water conditioning contractor licenses shall 
67.2 	include a verified statement that the applicant or licensee has complied with paragraph (b).
67.3 	(d) Each application and renewal for a water conditioning master license, water 
67.4 	conditioning journeyman license, or a water conditioning contractor license shall be 
67.5 	accompanied by all fees required by section 326B.092.
67.6 		Subd. 3.Commissioner. The commissioner shall:
67.7 	(1) license water conditioning contractors, water conditioning masters, and installers
67.8 	water conditioning journeymen; and
67.9 	(2) collect an examination fee from each examinee for a license as a water 
67.10 	conditioning contractor and an examination fee from each examinee for a license as a 
67.11 	water conditioning installer in an amount set forth in section 326B.58 the fees required by 
67.12 	section 326B.092. 
67.13 		Subd. 4.Plumber's apprentices. (a) A plumber's apprentice who is registered 
67.14 	under section 326B.47 is authorized to assist in water conditioning installation and water 
67.15 	conditioning servicing only while under the direct supervision of a master plumber, 
67.16 	journeyman plumber, water conditioning master, or water conditioning journeyman. 
67.17 	The master or journeyman is responsible for ensuring that all water conditioning work 
67.18 	performed by the plumber's apprentice complies with the plumbing code and rules 
67.19 	adopted under sections 326B.50 to 326B.59. The supervising master or journeyman must 
67.20 	be licensed and must be employed by the same employer as the plumber's apprentice. 
67.21 	Licensed individuals shall not permit plumber's apprentices to perform water conditioning 
67.22 	work except under the direct supervision of an individual actually licensed to perform 
67.23 	such work. Plumber's apprentices shall not supervise the performance of plumbing work 
67.24 	or make assignments of plumbing work to unlicensed individuals.
67.25 	(b) Water conditioning contractors employing plumber's apprentices to perform 
67.26 	water conditioning work shall maintain records establishing compliance with this 
67.27 	subdivision that shall identify all plumber's apprentices performing water conditioning 
67.28 	work, and shall permit the department to examine and copy all such records.

67.29 	EFFECTIVE DATE. This section is effective January 1, 2012.

67.30 	Sec. 37. Minnesota Statutes 2008, section 326B.56, as amended by Laws 2009, chapter 
67.31 	78, article 5, section 18, is amended to read:
67.32 	326B.56 ALTERNATIVE STATE BONDING AND INSURANCE 
67.33 	REGULATION.
68.1 		Subdivision 1.Bonds. (a) An applicant for a water conditioning contractor or 
68.2 	installer license or renewal thereof who is required by any political subdivision to give a 
68.3 	bond to obtain or maintain the license, may comply with any political subdivision bonding 
68.4 	requirement by giving As a condition of licensing, each water conditioning contractor 
68.5 	shall give and maintain a bond to the state as described in paragraph (b). No applicant for a 
68.6 	water conditioning contractor or installer license who maintains the bond under paragraph 
68.7 	(b) shall be otherwise required to meet the bond requirements of any political subdivision.
68.8 	(b) Each bond given to the state under this subdivision shall be in the total sum of 
68.9 	$3,000 conditioned upon the faithful and lawful performance of all water conditioning 
68.10 	contracting or installing work installation or servicing done within the state. The bond 
68.11 	shall be for the benefit of persons suffering injuries or damages due to the work. The bond 
68.12 	shall be filed with the commissioner and shall be written by a corporate surety licensed to 
68.13 	do business in this state. The bond must remain in effect at all times while the application 
68.14 	is pending and while the license is in effect.
68.15 		Subd. 2.Insurance. (a) Each applicant for a water conditioning contractor or 
68.16 	installer license or renewal thereof who is required by any political subdivision to maintain 
68.17 	insurance to obtain or maintain the license may comply with any political subdivision's 
68.18 	insurance requirement by maintaining As a condition of licensing, each water conditioning 
68.19 	contractor shall have and maintain in effect the insurance described in paragraph (b). 
68.20 	No applicant for a water conditioning contractor or installer license who maintains the 
68.21 	insurance described in paragraph (b) shall be otherwise required to meet the insurance 
68.22 	requirements of any political subdivision.
68.23 	(b) The insurance shall provide coverage, including products liability coverage, 
68.24 	for all damages in connection with licensed work for which the licensee is liable, with 
68.25 	personal damage limits of at least $50,000 per person and $100,000 per occurrence and 
68.26 	property damage insurance with limits of at least $10,000. The insurance shall be written 
68.27 	by an insurer licensed to do business in this state and a certificate evidencing the insurance 
68.28 	shall be filed with the commissioner. The insurance must remain in effect at all times 
68.29 	while the application is pending and while the license is in effect. The insurance shall not 
68.30 	be canceled without the insurer first giving 15 days' written notice to the commissioner.
68.31 		Subd. 3.Bond and insurance exemption. A water conditioning contractor or 
68.32 	installer who is an employee of a water conditioning contractor or installer, including 
68.33 	an employee engaged in the maintenance and repair of water conditioning equipment, 
68.34 	apparatus, or facilities owned, leased and operated, or maintained by the employer, is 
68.35 	not required to meet the bond and insurance requirements of subdivisions 1 and 2 or of 
68.36 	any political subdivision.
69.1 		Subd. 4.Fee. (a) The commissioner shall collect a $40 bond registration fee for 
69.2 	one year or $80 for two years from each applicant for issuance or renewal of a water 
69.3 	conditioning contractor or installer license who elects to proceed under subdivisions 
69.4 	1 and 2.
69.5 	(b) The commissioner shall in a manner determined by the commissioner, without 
69.6 	the need for any rulemaking under chapter 14, phase in the bond registration from one year 
69.7 	to two years so that the expiration of bond registration corresponds with the expiration of 
69.8 	the license issued under section 326B.55.

69.9 	EFFECTIVE DATE. This section is effective January 1, 2012.

69.10 	Sec. 38. Minnesota Statutes 2009 Supplement, section 326B.58, is amended to read:
69.11 	326B.58 FEES; RENEWAL.
69.12 	(a) Examination fees for both water conditioning contractors and water conditioning 
69.13 	installers shall be $50 for each examination. Each initial water conditioning contractor 
69.14 	and installer master and water conditioning journeyman license shall be effective for more 
69.15 	than one calendar year and shall expire on December 31 of the year after the year in which 
69.16 	the application is made. The license fee for each initial water conditioning contractor's 
69.17 	license shall be $140, except that the license fee shall be $105 if the application is 
69.18 	submitted during the last three months of the calendar year. The license fee for each 
69.19 	renewal water conditioning contractor's license shall be $70 for one year or $140 for two 
69.20 	years. The license fee for each initial water conditioning installer license shall be $70, 
69.21 	except that the license fee shall be $52.50 if the application is submitted during the last 
69.22 	three months of the calendar year. The license fee for each renewal water conditioning 
69.23 	installer license shall be $35 for one year or $70 for two years.
69.24 	(b) The commissioner shall in a manner determined by the commissioner, without 
69.25 	the need for any rulemaking under chapter 14, phase in the renewal of water conditioning 
69.26 	contractor and installer master and journeyman licenses from one year to two years. By 
69.27 	June 30, 2011, all renewed water conditioning contractor and installer licenses shall be 
69.28 	two-year licenses. The commissioner Plumbing Board may by rule prescribe for the 
69.29 	expiration and renewal of licenses.
69.30 	(c) Any licensee who does not renew a license within two years after the license 
69.31 	expires is no longer eligible for renewal. Such an individual must retake and pass the 
69.32 	examination before a new license will be issued. A water conditioning contractor or water 
69.33 	conditioning installer who submits a license renewal application after the time specified 
69.34 	in rule but within two years after the license expired must pay all past due renewal fees 
70.1 	plus a late fee of $25 All water conditioning contractor licenses shall expire on December 
70.2 	31 of the year after issuance or renewal.
70.3 	(d) For purposes of calculating license fees and renewal fees required under section 
70.4 	326B.092:
70.5 	(1) a water conditioning journeyman license shall be considered a journeyman 
70.6 	license;
70.7 	(2) a water conditioning master license shall be considered a master license; and
70.8 	(3) a water conditioning contractor license shall be considered a business license.

70.9 	EFFECTIVE DATE. This section is effective January 1, 2012.

70.10 	Sec. 39. Minnesota Statutes 2008, section 326B.805, subdivision 6, is amended to read:
70.11 		Subd. 6.Exemptions. The license requirement does not apply to:
70.12 	(1) an employee of a licensee performing work for the licensee;
70.13 	(2) a material person, manufacturer, or retailer furnishing finished products, 
70.14 	materials, or articles of merchandise who does not install or attach the items;
70.15 	(3) an owner of residential real estate who builds or improves any structure on 
70.16 	residential real estate, if the building or improving is performed by the owner's bona fide 
70.17 	employees or by individual owners personally. This exemption does not apply to an 
70.18 	owner who constructs or improves property for purposes of speculation if the building 
70.19 	or improving is performed by the owner's bona fide employees or by individual owners 
70.20 	personally. A residential building contractor or residential remodeler will be presumed 
70.21 	to be building or improving for purposes of speculation if the contractor or remodeler 
70.22 	constructs or improves more than one property within any 24-month period;
70.23 	(4) an architect or professional engineer engaging in professional practice as defined 
70.24 	by section 326.02, subdivisions 2 and 3;
70.25 	(5) a person whose total gross annual receipts for performing specialty skills for 
70.26 	which licensure would be required under this section do not exceed $15,000;
70.27 	(6) a mechanical contractor;
70.28 	(7) a plumber, electrician, or other person whose profession is otherwise subject to 
70.29 	statewide licensing, when engaged in the activity which is the subject of that licensure;
70.30 	(8) specialty contractors who provide only one special skill as defined in section 
70.31 	326B.802; 
70.32 	(9) a school district, or a technical college governed under chapter 136F; and
70.33 	(10) Habitat for Humanity and Builders Outreach Foundation, and their individual 
70.34 	volunteers when engaged in activities on their behalf.
71.1 	To qualify for the exemption in clause (5), a person must obtain a certificate of exemption 
71.2 	from licensure from the commissioner. A certificate of exemption will be issued upon 
71.3 	the applicant's filing with the commissioner, an affidavit stating that the applicant does 
71.4 	not expect to exceed $15,000 in gross annual receipts derived from performing services 
71.5 	which require licensure under this section during the calendar year in which the affidavit 
71.6 	is received. For the purposes of calculating fees under section 326B.092, a certificate of 
71.7 	exemption is an entry level license. To renew the exemption in clause (5), the applicant 
71.8 	must file an affidavit stating that the applicant did not exceed $15,000 in gross annual 
71.9 	receipts during the past calendar year. If a person, operating under the exemption in 
71.10 	clause (5), exceeds $15,000 in gross receipts during any calendar year, the person 
71.11 	must immediately surrender the exemption certificate of exemption and apply for the 
71.12 	appropriate license. The person must remain licensed until such time as the person's gross 
71.13 	annual receipts during a calendar year fall below $15,000. The person may then apply for 
71.14 	an exemption for the next calendar year.

71.15 	EFFECTIVE DATE. This section is effective January 1, 2012.

71.16 	Sec. 40. Minnesota Statutes 2009 Supplement, section 326B.815, subdivision 1, 
71.17 	is amended to read:
71.18 		Subdivision 1.Licensing fee Fees. (a) The licensing fee for persons licensed 
71.19 	pursuant to sections 326B.802 to 326B.885, except for manufactured home installers, 
71.20 	is $200 for a two-year period. The For the purposes of calculating fees under section 
71.21 	326B.092, an initial or renewed residential contractor, residential remodeler, or residential 
71.22 	roofer license is a business license. Notwithstanding section 326B.092, the licensing fee 
71.23 	for manufactured home installers under section 327B.041 is $300 for a three-year period.
71.24 	(b) All initial and renewal licenses, except for manufactured home installer licenses, 
71.25 	shall be effective for two years and shall expire on March 31 of the year after the year in 
71.26 	which the application is made. The license fee for each renewal of a residential contractor, 
71.27 	residential remodeler, or residential roofer license shall be $100 for one year and $200 
71.28 	for two years.
71.29 	(c) The commissioner shall in a manner determined by the commissioner, without 
71.30 	the need for any rulemaking under chapter 14, phase in the renewal of residential 
71.31 	contractor, residential remodeler, and residential roofer licenses from one year to two 
71.32 	years. By June 30, 2011, all renewed residential contractor, residential remodeler, and 
71.33 	residential roofer licenses shall be two-year licenses.

71.34 	EFFECTIVE DATE. This section is effective January 1, 2012.

72.1 	Sec. 41. Minnesota Statutes 2008, section 326B.83, subdivision 1, is amended to read:
72.2 		Subdivision 1.Form. (a) An applicant for a license under sections 326B.802 to 
72.3 	326B.885 must submit an application, under oath and accompanied by the license fee fees
72.4 	required by section 326B.815 326B.092, on a form prescribed by the commissioner. 
72.5 	Within 30 business days of receiving all required information, the commissioner must 
72.6 	act on the license request.
72.7 	(b) If one of the categories in the application does not apply, the applicant must 
72.8 	identify the category and state the reason the category does not apply. The commissioner 
72.9 	may refuse to issue a license if the application is not complete or contains unsatisfactory 
72.10 	information. 

72.11 	EFFECTIVE DATE. This section is effective January 1, 2012.

72.12 	Sec. 42. Minnesota Statutes 2008, section 326B.83, subdivision 3, is amended to read:
72.13 		Subd. 3.Examination. (a) Each qualifying person must satisfactorily complete pass
72.14 	a written examination for the type of license requested. The commissioner may establish 
72.15 	the examination qualifications, including related education experience and education, the 
72.16 	examination procedure, and the examination for each licensing group. The examination 
72.17 	must include at a minimum the following areas:
72.18 	(1) appropriate knowledge of technical terms commonly used and the knowledge of 
72.19 	reference materials and code books to be used for technical information; and
72.20 	(2) understanding of the general principles of business management and other 
72.21 	pertinent state laws.
72.22 	(b) Each examination must be designed for the specified type of license requested. 
72.23 	(c) An individual's passing examination results expire two years from the 
72.24 	examination date. An individual who passes the examination but does not choose to apply 
72.25 	to act as a qualifying person for a licensee within two years from the examination date, 
72.26 	must, upon application provide:
72.27 	(1) passing examination results within two years from the date of application; or
72.28 	(2) proof that the person has fulfilled the continuing education requirements in 
72.29 	section 326B.821 in the manner required for a qualifying person of a licensee for each 
72.30 	license period after the expiration of the examination results. 

72.31 	EFFECTIVE DATE. This section is effective January 1, 2012.

72.32 	Sec. 43. Minnesota Statutes 2008, section 326B.83, subdivision 6, is amended to read:
73.1 		Subd. 6.License. A nonresident of Minnesota may be licensed as a residential 
73.2 	building contractor, residential remodeler, residential roofer, or manufactured home 
73.3 	installer upon compliance with all the provisions of sections 326B.092 to 326B.098 and 
73.4 	326B.802 to 326B.885.

73.5 	EFFECTIVE DATE. This section is effective January 1, 2012.

73.6 	Sec. 44. Minnesota Statutes 2009 Supplement, section 326B.86, subdivision 1, is 
73.7 	amended to read:
73.8 		Subdivision 1.Bond. (a) Licensed manufactured home installers and licensed 
73.9 	residential roofers must post a biennial surety bond in the name of the licensee with the 
73.10 	commissioner, conditioned that the applicant shall faithfully perform the duties and in 
73.11 	all things comply with all laws, ordinances, and rules pertaining to the license or permit 
73.12 	applied for and all contracts entered into. The biennial bond must be continuous and 
73.13 	maintained for so long as the licensee remains licensed. The aggregate liability of the 
73.14 	surety on the bond to any and all persons, regardless of the number of claims made 
73.15 	against the bond, may not exceed the amount of the bond. The bond may be canceled as 
73.16 	to future liability by the surety upon 30 days' written notice mailed to the commissioner 
73.17 	by regular mail.
73.18 	(b) A licensed residential roofer must post a bond of at least $15,000.
73.19 	(c) A licensed manufactured home installer must post a bond of at least $2,500.
73.20 	Bonds issued under sections 326B.802 to 326B.885 are not state bonds or contracts 
73.21 	for purposes of sections 8.05 and 16C.05, subdivision 2.

73.22 	EFFECTIVE DATE. This section is effective January 1, 2012.

73.23 	Sec. 45. Minnesota Statutes 2008, section 326B.865, is amended to read:
73.24 	326B.865 SIGN CONTRACTOR; BOND.
73.25 	(a) A sign contractor may post a compliance bond with the commissioner, 
73.26 	conditioned that the sign contractor shall faithfully perform duties and comply with 
73.27 	laws, ordinances, rules, and contracts entered into for the installation of signs. The bond 
73.28 	must be renewed annually biennially and maintained for so long as determined by the 
73.29 	commissioner. The aggregate liability of the surety on the bond to any and all persons, 
73.30 	regardless of the number of claims made against the bond, may not exceed the annual 
73.31 	amount of the bond. The bond may be canceled as to future liability by the surety upon 30 
73.32 	days' written notice mailed to the commissioner by United States mail.
74.1 	(b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a 
74.2 	local unit of government that requires sign contractors to post a compliance bond. The 
74.3 	bond is in lieu of any compliance bond required by a local unit of government.
74.4 	(c) For purposes of this section, "sign" means a device, structure, fixture, or 
74.5 	placard using graphics, symbols, or written copy that is erected on the premises of an 
74.6 	establishment including the name of the establishment or identifying the merchandise, 
74.7 	services, activities, or entertainment available on the premises.

74.8 	EFFECTIVE DATE. This section is effective January 1, 2012.

74.9 	Sec. 46. Minnesota Statutes 2008, section 326B.921, subdivision 2, is amended to read:
74.10 		Subd. 2. High pressure pipefitting business license. Before obtaining a permit 
74.11 	for high pressure piping work, a person must obtain or utilize a business with a high 
74.12 	pressure piping business license. 
74.13 	A person must have at all times as a full-time employee at least one individual 
74.14 	holding a contracting high pressure pipefitter competency license. Only full-time 
74.15 	employees who hold contracting high pressure pipefitter licenses are authorized to obtain 
74.16 	high pressure piping permits in the name of the business. The contracting high pressure 
74.17 	pipefitter competency license holder can be the employee of only one high pressure piping 
74.18 	business at a time. An application for a high pressure piping business license shall include 
74.19 	a verified statement that the applicant or licensee has complied with this subdivision.
74.20 	To retain its business license without reapplication, a person holding a high pressure 
74.21 	piping business license that ceases to employ an individual holding a contracting high 
74.22 	pressure pipefitter competency license shall have 60 days from the last day of employment 
74.23 	of its previous contracting pipefitter competency license holder to employ another license 
74.24 	holder. The department must be notified no later than five days after the last day of 
74.25 	employment of the previous license holder. 
74.26 	No high pressure pipefitting work may be performed during any period when the 
74.27 	high pressure pipefitting business does not have a contracting high pressure pipefitter 
74.28 	competency license holder on staff. If a license holder is not employed within 60 days 
74.29 	after the last day of employment of the previous license holder, the pipefitting business 
74.30 	license shall lapse. 
74.31 	The board shall prescribe by rule procedures for application for and issuance of 
74.32 	business licenses. 

74.33 	EFFECTIVE DATE. This section is effective January 1, 2012.

75.1 	Sec. 47. Minnesota Statutes 2008, section 326B.921, subdivision 4, is amended to read:
75.2 		Subd. 4. Registration with commissioner. An unlicensed individual may 
75.3 	register to assist in the practical construction and installation of high pressure piping 
75.4 	and appurtenances while in the employ of a licensed high pressure piping business by 
75.5 	completing and submitting to the commissioner a registration form provided by the 
75.6 	commissioner, with all fees required by section 326B.092. The board may prescribe rules, 
75.7 	not inconsistent with this section, for the registration of unlicensed individuals. 
75.8 	An unlicensed individual applying for initial registration shall pay the department an 
75.9 	application fee of $50. Applications for initial registration may be submitted at any time. 
75.10 	Registration must be renewed annually and shall be valid for one calendar year beginning 
75.11 	January 1. Applications for renewal registration must be submitted to the commissioner 
75.12 	before December 31 of each registration period on forms provided by the commissioner, 
75.13 	and must be accompanied by a fee of $50. There shall be no refund of fees paid.

75.14 	EFFECTIVE DATE. This section is effective January 1, 2012.

75.15 	Sec. 48. Minnesota Statutes 2008, section 326B.921, subdivision 7, is amended to read:
75.16 		Subd. 7. License fee, registration, and renewal fees. The department shall charge 
75.17 	the following license fees: 
75.18 	(a) application for journeyman high pressure pipefitter competency license, $120; 
75.19 	(b) renewal of journeyman high pressure pipefitter competency license, $80; 
75.20 	(c) application for contracting high pressure pipefitter competency license, $270; 
75.21 	(d) renewal of contracting high pressure pipefitter competency license, $240; 
75.22 	(e) application for high pressure piping business license, $450; 
75.23 	(f) application to inactivate a contracting high pressure pipefitter competency license 
75.24 	or inactivate a journeyman high pressure pipefitter competency license, $40; and 
75.25 	(g) renewal of an inactive contracting high pressure pipefitter competency license or 
75.26 	inactive journeyman high pressure pipefitter competency license, $40. 
75.27 	If an application for renewal of an active or inactive journeyman high pressure 
75.28 	pipefitter competency license or active or inactive contracting high pressure pipefitter 
75.29 	competency license is received by the department after the date of expiration of the 
75.30 	license, a $30 late renewal fee shall be added to the license renewal fee. 
75.31 	Payment must accompany the application for a license or renewal of a license. There 
75.32 	shall be no refund of fees paid.
75.33 	For purposes of calculating license, registration, and renewal fees required under 
75.34 	section 326B.092:
76.1 	(1) the registration of an unlicensed individual under subdivision 4 is an entry 
76.2 	level license;
76.3 	(2) a journeyman high pressure pipefitter license is a journeyman license;
76.4 	(3) a contracting high pressure pipefitter license is a master license; and
76.5 	(4) a high pressure piping business license is a business license.

76.6 	EFFECTIVE DATE. This section is effective January 1, 2012.

76.7 	Sec. 49. Minnesota Statutes 2008, section 326B.922, is amended to read:
76.8 	326B.922 LICENSE APPLICATION AND RENEWAL. 
76.9 	(a) Application for a contracting high pressure pipefitter competency or, a 
76.10 	journeyman high pressure pipefitter competency, or a high pressure piping business
76.11 	license shall be made to the department, with all fees required by section 326B.092.
76.12 	(b) The applicant for a contracting high pressure pipefitter or a journeyman high 
76.13 	pressure pipefitter license shall be licensed only after passing an examination developed 
76.14 	and administered by the department in accordance with rules adopted by the board. A 
76.15 	competency license issued by the department shall expire on December 31 of each year. A 
76.16 	renewal application must be received by the department within one year after expiration of 
76.17 	the competency license. A license that has been expired for more than one year cannot 
76.18 	be renewed, and can only be reissued if the applicant submits a new application for the 
76.19 	competency license, pays a new application fee, and retakes and passes the applicable 
76.20 	license examination.
76.21 	(c) All initial contracting high pressure pipefitter licenses, journeyman high pressure 
76.22 	pipefitter licenses, and high pressure piping business licenses are effective for more than 
76.23 	one calendar year and expire on December 31 of the year after the year in which the 
76.24 	application is made. The commissioner shall in a manner determined by the commissioner, 
76.25 	without the need for any rulemaking under chapter 14, phase in the renewal of contracting 
76.26 	high pressure pipefitter,  journeyman high pressure pipefitter, and high pressure piping 
76.27 	business  licenses from one year to two years. By June 30, 2012, all such licenses shall be 
76.28 	two-year licenses.

76.29 	EFFECTIVE DATE. This section is effective January 1, 2012.

76.30 	Sec. 50. Minnesota Statutes 2009 Supplement, section 326B.94, subdivision 4, is 
76.31 	amended to read:
76.32 		Subd. 4.Examinations, licensing. Every individual that operates a boat must hold 
76.33 	a current master's license issued by the commissioner, unless the individual holds a valid, 
77.1 	unlimited, current United States Coast Guard master's license. The commissioner shall 
77.2 	develop and administer an examination for all masters of boats carrying passengers for 
77.3 	hire on the inland waters of the state as to their qualifications and fitness. If found qualified 
77.4 	and competent to perform their duties as a master of a boat carrying passengers for hire, 
77.5 	they shall be issued a license authorizing them to act as such on the inland waters of 
77.6 	the state. All initial master's licenses shall be for two years. The commissioner shall in 
77.7 	a manner determined by the commissioner, without the need for any rulemaking under 
77.8 	chapter 14, phase in the renewal of master's licenses from one year to two years. By June 
77.9 	30, 2011, all renewed master's licenses shall be two-year licenses. Fees for the original 
77.10 	issue and renewal of the license authorized under this section shall be pursuant to section 
77.11 	326B.986, subdivision 2 326B.092.

77.12 	EFFECTIVE DATE. This section is effective January 1, 2012.

77.13 	Sec. 51. Minnesota Statutes 2008, section 326B.978, subdivision 2, is amended to read:
77.14 		Subd. 2. Applications. Any individual who desires an engineer's license shall 
77.15 	submit an application on a written or electronic form prescribed by the commissioner, at 
77.16 	least 15 days before the requested exam date. If the commissioner approves the applicant 
77.17 	for examination, the applicant may take the examination on one occasion within one 
77.18 	year from the date the commissioner receives the application with all fees required by 
77.19 	section 326B.092. 

77.20 	EFFECTIVE DATE. This section is effective January 1, 2012.

77.21 	Sec. 52. Minnesota Statutes 2008, section 326B.978, is amended by adding a 
77.22 	subdivision to read:
77.23 		Subd. 19.Applicability. This section shall not apply to traction or hobby boiler 
77.24 	engineer's licenses or provisional licenses.

77.25 	EFFECTIVE DATE. This section is effective January 1, 2012.

77.26 	Sec. 53. Minnesota Statutes 2009 Supplement, section 326B.986, subdivision 5, 
77.27 	is amended to read:
77.28 		Subd. 5.Boiler engineer license fees. (a) For the following licenses, the 
77.29 	nonrefundable license and application fee is:
77.30 	(1) chief engineer's license, $70;
77.31 	(2) first class engineer's license, $70;
77.32 	(3) second class engineer's license, $70;
78.1 	(4) special engineer's license, $40;
78.2 	(5) traction or hobby boiler engineer's license, $50; and
78.3 	(6) provisional license, $50.
78.4 	(b) An engineer's license, except a provisional license, may be renewed upon 
78.5 	application and payment of a renewal fee of $20 for one year or $40 for two years. If 
78.6 	the renewal fee is paid later than 30 days after expiration, then a late fee of $15 will be 
78.7 	added to the renewal fee.
78.8 	(a) For purposes of calculating license fees and renewal license fees required under 
78.9 	section 326B.092:
78.10 	(1) the boiler special engineer license is an entry level license;
78.11 	(2) the following licenses are journeyman licenses: first class engineer, Grade A; 
78.12 	first class engineer, Grade B; first class engineer, Grade C; second class engineer, Grade 
78.13 	A; second class engineer, Grade B; second class engineer, Grade C; and provisional 
78.14 	license; and
78.15 	(3) the following licenses are master licenses: boiler chief engineer, Grade A; boiler 
78.16 	chief engineer, Grade B; boiler chief engineer, Grade C; boiler commissioner inspector; or 
78.17 	traction or hobby boiler engineer.
78.18 	(b) Notwithstanding section 326B.092, subdivision 7, paragraph (a), the license 
78.19 	duration for steam traction and hobby engineer licenses are one year only for the purpose 
78.20 	of calculating license fees under section 326B.092, subdivision 7, paragraph (b).

78.21 	EFFECTIVE DATE. This section is effective January 1, 2012.

78.22 	Sec. 54. Minnesota Statutes 2008, section 327.31, subdivision 17, is amended to read:
78.23 		Subd. 17.Installation. "Installation" of a manufactured home means assembly
78.24 	installation or reinstallation, at the site of occupancy, of all portions of a manufactured 
78.25 	home, connection of the manufactured home to existing utility connections and installation 
78.26 	of support and/or anchoring systems.

78.27 	Sec. 55. Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision 
78.28 	to read:
78.29 		Subd. 21.Used manufactured home. "Used manufactured home" means a home 
78.30 	being offered for sale not less than 24 months after the first purchaser took legal ownership 
78.31 	or possession of the home.

78.32 	Sec. 56. Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision 
78.33 	to read:
79.1 		Subd. 22.Seller. "Seller" means either the homeowner, manufactured home retailer 
79.2 	or dealer, broker, limited dealer or retailer, or listing agent.

79.3 	Sec. 57. Minnesota Statutes 2008, section 327.32, subdivision 1, is amended to read:
79.4 		Subdivision 1. Requirement; new manufactured homes. No person shall sell,
79.5 	or offer for sale, in this state, any new manufactured home manufactured after July 1, 
79.6 	1972, or manufacture any manufactured home in this state or install for occupancy any 
79.7 	manufactured home manufactured after July 1, 1972, in any manufactured home park in 
79.8 	this state unless the manufactured home complies with the Manufactured Home Building 
79.9 	Code and:  bears a label as required by the secretary.
79.10 	(a) bears a seal issued by the commissioner, and is, whenever possible, accompanied 
79.11 	by a certificate by the manufacturer or dealer, both evidencing that it complies with the 
79.12 	Manufactured Home Building Code; or 
79.13 	(b) if manufactured after June 14, 1976, bears a label as required by the secretary. 

79.14 	Sec. 58. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 
79.15 	to read:
79.16 		Subd. 1a.Requirement; used manufactured homes. No person shall sell or 
79.17 	offer for sale in this state any used manufactured home manufactured after June 14, 
79.18 	1976, or install for occupancy any used manufactured home manufactured after June 
79.19 	14, 1976, unless the used manufactured home complies with the Notice of Compliance 
79.20 	Form as provided in this subdivision. If manufactured after June 14, 1976, the home 
79.21 	must bear a label as required by the secretary. The Notice of Compliance Form shall be 
79.22 	signed by the seller and purchaser indicating which party is responsible for either making 
79.23 	or paying for any necessary corrections prior to the sale and transferring ownership of 
79.24 	the manufactured home.
79.25 	The Notice of Compliance Form shall be substantially in the following form:
79.26 	"Notice of Compliance Form as required in Minnesota Statutes, 
79.27 	section 327.32, subdivision 1.
79.28 	This notice must be completed and signed by the purchaser(s) and the seller(s) of the 
79.29 	used manufactured home described in the purchase agreement and on the bottom of this 
79.30 	notice before the parties fully execute the sale of a used manufactured home constructed 
79.31 	after June 14, 1976.
79.32 	Electric ranges and clothes dryers must have required four-conductor cords and plugs.

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

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

80.12	Complies ..........
	Correction required ..........
	
80.13	Initialed by Responsible Party: Buyer ..........
	Seller ..........
	
80.14 	Smoke alarms are required to be installed and operational in accordance with Code of 
80.15 	Federal Regulations, title 24, section 3280.208.

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

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

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

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

81.4	Complies ..........
	Correction required ..........
	
81.5	Initialed by Responsible Party: Buyer ..........
	Seller ..........
	
81.6 	The home complies with the snowload and heat zone requirements for the state of 
81.7 	Minnesota as indicated by the data plate. 

81.8	Complies ..........
	Correction required ..........
	
81.9	Initialed by Responsible Party: Buyer ..........
	Seller ..........
	
81.10 	The parties to this agreement have initialed all required sections and agree by their 
81.11 	signature to complete any necessary corrections prior to the sale or transfer of ownership 
81.12 	of the home described below as listed in the purchase agreement. The state of Minnesota 
81.13 	or a local building official has the authority to inspect the home in the manner described in 
81.14 	Minnesota Statutes, section 327.33, prior to or after the sale to ensure compliance was 
81.15 	properly executed as provided under the Manufactured Home Building Code.

81.16	Signature of Purchaser(s) of Home
		
81.17	..............................date..............................
	..............................date..............................
	
81.18	.......................................................................
	.......................................................................
	
81.19
81.20	Print name as appears on purchase 
agreement
	Print name as appears on purchase 
agreement
	
81.21	Signature of Seller(s) of Home
		
81.22	..............................date..............................
	..............................date..............................
	
81.23	.......................................................................
	.......................................................................
	
81.24	Print name and license number, if applicable
	Print name and license number, if applicable
	
81.25	(Street address of home at time of sale
		
81.26	................................................................................................................................
	
81.27	City/State/Zip).......................................................................................................
	
81.28	Name of manufacturer of home............................................................................
	
81.29	Model and Year.....................................................................................................
	
81.30	Serial Number........................................................................................................"

81.31 	Sec. 59. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 
81.32 	to read:
81.33 		Subd. 1b.Alternative design plan. An alternative frost-free design slab that is 
81.34 	submitted to the department, stamped by a licensed professional engineer or architect, and 
81.35 	is in compliance with the federal installation standards in effect at the date of manufacture 
81.36 	or the Minnesota State Building Code, when applicable, shall be issued a permit by the 
81.37 	department within ten days. 

82.1 	Sec. 60. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 
82.2 	to read:
82.3 		Subd. 1c.Manufacturer's installation instructions; new home. All new 
82.4 	single-section manufactured homes and new multisection manufactured homes shall be 
82.5 	installed in compliance with the manufacturer's installation instructions in effect at the 
82.6 	date of manufacture or, when applicable, the Minnesota State Building Code.

82.7 	Sec. 61. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 
82.8 	to read:
82.9 		Subd. 1d.Manufacturer's installation instructions; used multisection homes.
 82.10 	All used multisection manufactured homes shall be installed in compliance with either 
82.11 	the manufacturer's installation instructions in effect at the date of manufacture, approved 
82.12 	addenda or, when applicable, the Minnesota State Building Code.

82.13 	Sec. 62. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 
82.14 	to read:
82.15 		Subd. 1e.Reinstallation requirements for single-section used manufactured 
82.16 	homes. (a) All single-section used manufactured homes reinstalled less than 24 months 
82.17 	from the date of installation by the first purchaser must be reinstalled in compliance with 
82.18 	subdivision 1c. All single-section used manufactured homes reinstalled more than 24 
82.19 	months from the date of installation by the first purchaser may be reinstalled without 
82.20 	a frost-protected foundation if the home is reinstalled in compliance with Minnesota 
82.21 	Rules, chapter 1350, for above frost-line installations and the notice requirement of 
82.22 	subdivision 1f is complied with by the seller and the purchaser of the single-section used 
82.23 	manufactured home.
82.24 	(b) The installer shall affix an installation seal issued by the department to the 
82.25 	outside of the home as required by the Minnesota State Building Code. The certificate 
82.26 	of installation issued by the installer of record shall clearly state that the home has been 
82.27 	reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and 
82.28 	for issuance of reinstallation seals shall follow the requirements of sections 326B.802 
82.29 	to 326B.885. Fees for review of plans, specifications, and on-site inspections shall be 
82.30 	those as specified in section 326B.153, subdivision 1, paragraph (c). Whenever an 
82.31 	installation certificate for an above frost-line installation is issued to a single-section used 
82.32 	manufactured home being listed for sale, the purchase agreement must disclose that the 
82.33 	home is installed on a nonfrost-protected foundation and recommend that the purchaser 
82.34 	have the home inspected to determine the effects of frost on the home.

83.1 	Sec. 63. Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision 
83.2 	to read:
83.3 		Subd. 1f.Notice requirement. The seller of the single-section used manufactured 
83.4 	home being reinstalled under subdivision 1e shall provide the following notice to the 
83.5 	purchaser and secure signatures of all parties to the purchase agreement on or before 
83.6 	signing a purchase agreement prior to submitting an application for an installation 
83.7 	certificate. Whenever a current owner of a manufactured home reinstalls the manufactured 
83.8 	home under subdivision 1e, the current owner is not required to comply with the notice 
83.9 	requirement under this subdivision. The notice, which shall be in the same font size 
83.10 	as required for the purchase agreement and becomes a part of the purchase agreement, 
83.11 	shall be substantially in the following form:
83.12 	"Notice of Reinstalling of a Single-Section Used Manufactured 
83.13 	Home Above Frost Line
83.14 	It is recommended that the single-section used manufactured home being reinstalled 
83.15 	follow the instructions in the manufacturer's installation manual. By signing this notice, 
83.16 	the purchaser(s) are acknowledging they have elected to use footings placed above the 
83.17 	local frost line in accordance with the Minnesota State Building Code.
83.18 	The seller has explained the differences between the manufacturer's installation 
83.19 	instructions and the installation system selected by the purchaser(s) with respect to 
83.20 	possible effects of frost on the manufactured home. 
83.21 	The purchaser(s) acknowledge by signing this notice that there is no manufacturer's 
83.22 	original warranty remaining on the home and recognize that any other extended or ancillary 
83.23 	warranty could be adversely affected if any applicable warranty stipulates that the home 
83.24 	be installed in accordance with the manufacturer's installation manual to remain effective.
83.25 	After the reinstallation of the manufactured home, it is highly recommended that the 
83.26 	purchaser(s) have a licensed manufactured home installer recheck the home's installation 
83.27 	for any releveling needs or anchoring system adjustments each freeze-thaw cycle. 
83.28 	The purchaser(s) of the used manufactured home described below that is being reinstalled 
83.29 	acknowledge they have read this notice and have been advised to contact the manufacturer 
83.30 	of the home and/or the Department of Labor and Industry if they desire additional 
83.31 	information before signing this notice. It is the intent of this notice to inform the 
83.32 	purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system 
83.33 	for the reinstallation of the manufactured home as originally required by the home's 
83.34 	installation manual.
83.35 	Plain language notice.
84.1 	I understand that because this home will be installed with footings placed above the 
84.2 	local frost line, this home may be subject to adverse effects from frost heave that may 
84.3 	damage this home. Purchaser(s) initials: .......
84.4 	I understand that the installation of this home with footings placed above the local 
84.5 	frost line could affect my ability to obtain a mortgage or mortgage insurance on this 
84.6 	home. Purchaser(s) initials: .......
84.7 	I understand that the installation of this home with footings placed above the local 
84.8 	frost line could void my warranty on the home if any warranty is still in place on this 
84.9 	home. Purchaser(s) initials: .......

84.10	Signature of Purchaser(s)
		
84.11	..............................date..............................
	..............................date..............................
	
84.12	...................................................................
	...................................................................
	
84.13	Print name
	Print name
	
84.14
84.15	(Street address of location where 
manufactured home is being reinstalled)
		
84.16	..............................................................................................................................
	
84.17	(City/State/Zip)....................................................................................................
	
84.18	Name of manufacturer of home.........................................................................
	
84.19	Model and year...................................................................................................
	
84.20	Serial number.....................................................................................................
	
84.21 	Name of licensed installer and license number or homeowner responsible for the 
84.22 	installation of the home as described above.

84.23	Installer name:...................................................................................................
	
84.24	License number:................................................................................................"

84.25 	Sec. 64. Minnesota Statutes 2008, section 327B.04, subdivision 2, is amended to read:
84.26 		Subd. 2.Subagency licenses. Any dealer who has a place of business at more than 
84.27 	one location shall designate one location as its principal place of business, one name as its 
84.28 	principal name, and all other established places of business as subagencies. A subagency 
84.29 	license shall be required for each subagency. Subagency license renewal must coincide 
84.30 	with the principal license date. No dealer shall do business as a dealer under any other 
84.31 	name than the name on its license.

84.32 	EFFECTIVE DATE. This section is effective January 1, 2012.

84.33 	Sec. 65. Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 7, is 
84.34 	amended to read:
85.1 		Subd. 7. Licenses; when granted renewal. In addition to the requirements of this 
85.2 	section, each application for a license or license renewal must be accompanied by a fee in 
85.3 	an amount established by subdivision 7a all applicable fees required by section 326B.092. 
85.4 	The fees shall be set in an amount which over the fiscal biennium will produce revenues 
85.5 	approximately equal to the expenses which the commissioner expects to incur during that 
85.6 	fiscal biennium while administering and enforcing sections 327B.01 to 327B.12. The 
85.7 	commissioner shall grant or deny a license application or a renewal application within 60 
85.8 	days of its filing. If the license is granted, the commissioner shall license the applicant as a 
85.9 	dealer or manufacturer for the remainder of the licensure period. Upon application by the 
85.10 	licensee, the commissioner shall renew the license for a two-year period, if:
85.11 	(1) the renewal application satisfies the requirements of subdivisions 3 and 4;
85.12 	(2) the renewal applicant has made all listings, registrations, notices and reports 
85.13 	required by the commissioner during the preceding licensure period; and
85.14 	(3) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to 
85.15 	327B.12 and all taxes, arrearages, and penalties owed to the state.

85.16 	EFFECTIVE DATE. This section is effective January 1, 2012.

85.17 	Sec. 66. Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 7a, 
85.18 	is amended to read:
85.19 		Subd. 7a.Fees. (a) Fees for licenses issued pursuant to this section are as follows:
85.20 	shall be calculated pursuant to section 326B.092.
85.21 	(1) initial dealer license for principal location, $400. Fee is not refundable;
85.22 	(2) initial dealer license for subagency location, $80;
85.23 	(3) dealer license biennial renewal, principal location, $400; dealer subagency 
85.24 	location biennial renewal, $160. Subagency license renewal must coincide with the 
85.25 	principal license date;
85.26 	(4) initial limited dealer license, $200;
85.27 	(5) change of bonding company, $10;
85.28 	(6) reinstatement of bond after cancellation notice has been received, $10;
85.29 	(7) checks returned without payment, $15; and
85.30 	(8) change of address, $10.
85.31 	(b) All initial limited dealer licenses shall be effective for more than one calendar 
85.32 	year and shall expire on December 31 of the year after the year in which the application 
85.33 	is made.
85.34 	(c) The license fee for each renewed limited dealer license shall be $100 for one year 
85.35 	and $200 for two years. For the purposes of calculating fees under section 326B.092, any 
86.1 	license issued under this section is a business license, except that a subagency license is a 
86.2 	master license. The commissioner shall in a manner determined by the commissioner, 
86.3 	without the need for any rulemaking under chapter 14, phase in the renewal of limited 
86.4 	dealer licenses from one year to two years. By June 30, 2011, all renewed limited dealer 
86.5 	licenses shall be two-year licenses.
86.6 	(d) All fees are not refundable.

86.7 	EFFECTIVE DATE. This section is effective January 1, 2012.

86.8 	Sec. 67. Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 8, is 
86.9 	amended to read:
86.10 		Subd. 8.Limited dealer's license. The commissioner shall issue a limited dealer's 
86.11 	license to an owner of a manufactured home park authorizing the licensee as principal 
86.12 	only to engage in the sale, offering for sale, soliciting, or advertising the sale of used 
86.13 	manufactured homes located in the owned manufactured home park. The licensee must be 
86.14 	the title holder of the homes and may engage in no more than ten sales during each year of 
86.15 	the two-year licensure period. An owner may, upon payment of the applicable fee and 
86.16 	compliance with this subdivision, obtain a separate license for each owned manufactured 
86.17 	home park and is entitled to sell up to 20 homes per license period provided that only one 
86.18 	limited dealer license may be issued for each park. The license shall be issued after:
86.19 	(1) receipt of an application on forms provided by the commissioner containing 
86.20 	the following information:
86.21 	(i) the identity of the applicant;
86.22 	(ii) the name under which the applicant will be licensed and do business in this state;
86.23 	(iii) the name and address of the owned manufactured home park, including a copy 
86.24 	of the park license, serving as the basis for the issuance of the license;
86.25 	(iv) the name, home, and business address of the applicant;
86.26 	(v) the name, address, and telephone number of one individual that is designated 
86.27 	by the applicant to receive all communications and cooperate with all inspections and 
86.28 	investigations of the commissioner pertaining to the sale of manufactured homes in the 
86.29 	manufactured home park owned by the applicant;
86.30 	(vi) whether the applicant or its designated individual has been convicted of a crime 
86.31 	within the previous ten years that is either related directly to the business for which the 
86.32 	license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a 
86.33 	judgment in a civil action involving fraud, misrepresentation, or conversion within the 
86.34 	previous five years or has had any government license or permit suspended or revoked 
87.1 	as a result of an action brought by a federal or state governmental agency in this or any 
87.2 	other state within the last five years; and
87.3 	(vii) the applicant's qualifications and business history, including whether the 
87.4 	applicant or its designated individual has ever been adjudged bankrupt or insolvent, or has 
87.5 	any unsatisfied court judgments outstanding against it or them;
87.6 	(2) payment of the license fee established by subdivision 7a; and
87.7 	(3) provision of a surety bond in the amount of $5,000. A separate surety bond 
87.8 	must be provided for each limited license.
87.9 	The applicant need not comply with section 327B.04, subdivision 4, paragraph (e). 
87.10 	The holding of a limited dealer's license does not satisfy the requirement contained in 
87.11 	section 327B.04, subdivision 4, paragraph (e), for the licensee or salespersons with respect 
87.12 	to obtaining a dealer license. The commissioner may, upon application for a renewal of a 
87.13 	license, require only a verification that copies of sales documents have been retained and 
87.14 	payment of the renewal fee fees established by subdivision 7a section 326B.092. "Sales 
87.15 	documents" mean only the safety feature disclosure form defined in section 327C.07, 
87.16 	subdivision 3a, title of the home, financing agreements, and purchase agreements.
87.17 	The license holder shall, upon request of the commissioner, make available for 
87.18 	inspection during business hours sales documents required to be retained under this 
87.19 	subdivision.

87.20 	EFFECTIVE DATE. This section is effective January 1, 2012.

87.21 	Sec. 68. Minnesota Statutes 2009 Supplement, section 327B.041, is amended to read:
87.22 	327B.041 MANUFACTURED HOME INSTALLERS.
87.23 	(a) Manufactured home installers are subject to all of the fees in section 326B.092 
87.24 	and the requirements of sections 326B.802 to 326B.885, except for the following:
87.25 	(1) manufactured home installers are not subject to the continuing education 
87.26 	requirements of section 326B.821, but are subject to the continuing education requirements 
87.27 	established in rules adopted under section 327B.10;
87.28 	(2) the examination requirement of section 326B.83, subdivision 3, for manufactured 
87.29 	home installers shall be satisfied by successful completion of a written examination 
87.30 	administered and developed specifically for the examination of manufactured home 
87.31 	installers. The examination must be administered and developed by the commissioner. The 
87.32 	commissioner and the state building official shall seek advice on the grading, monitoring, 
87.33 	and updating of examinations from the Minnesota Manufactured Housing Association;
88.1 	(3) a local government unit may not place a surcharge on a license fee, and may not 
88.2 	charge a separate fee to installers;
88.3 	(4) a dealer or distributor who does not install or repair manufactured homes is 
88.4 	exempt from licensure under sections 326B.802 to 326B.885;
88.5 	(5) the exemption under section 326B.805, subdivision 6, clause (5), does not 
88.6 	apply; and
88.7 	(6) manufactured home installers are not subject to the contractor recovery fund 
88.8 	in section 326B.89.
88.9 	(b) The commissioner may waive all or part of the requirements for licensure 
88.10 	as a manufactured home installer for any individual who holds an unexpired license or 
88.11 	certificate issued by any other state or other United States jurisdiction if the licensing 
88.12 	requirements of that jurisdiction meet or exceed the corresponding licensing requirements 
88.13 	of the department and the individual complies with section 326B.092, subdivisions 1 
88.14 	and 3 to 7. For the purposes of calculating fees under section 326B.092, licensure as a 
88.15 	manufactured home installer is a business license.

88.16 	EFFECTIVE DATE. This section is effective January 1, 2012.

88.17 	Sec. 69. WATER-FREE URINALS.
 88.18 	The Plumbing Board shall have expedited rulemaking authority provided under 
88.19 	section 14.389 for expedited rules regarding water-free urinals that meet the Minnesota 
88.20 	Plumbing Board standards. This authority expires December 31, 2010.

88.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

88.22 	Sec. 70. REVISOR'S INSTRUCTION.
 88.23 	In Minnesota Rules, the revisor of statutes shall change all references to Minnesota 
88.24 	Rules, part 1350.8300 to Minnesota Statutes, section 327B.04.

88.25 	EFFECTIVE DATE. This section is effective January 1, 2012.

88.26 	Sec. 71.  REPEALER.
 88.27 	(a) Minnesota Statutes 2008, sections 326B.133, subdivisions 9 and 10; 326B.37, 
88.28 	subdivision 13; 326B.475, subdivisions 5 and 6; 326B.56, subdivision 3; 326B.885, 
88.29 	subdivisions 3 and 4; and 326B.976, are repealed.
88.30 	(b) Minnesota Statutes 2008, sections 327.32, subdivision 4; and 327C.07, 
88.31 	subdivisions 3, 3a, and 8, are repealed.
88.32 	(c) Minnesota Statutes 2009 Supplement, section 326B.56, subdivision 4, is repealed.
89.1 	(d) Minnesota Rules, parts 1301.0500; 1301.0900; 1301.1100, subparts 2, 3, and 4; 
89.2 	1350.7200, subpart 3; and 1350.8000, subpart 2, are repealed.

89.3 	EFFECTIVE DATE. Paragraphs (a), (c), and (d) are effective January 1, 2012.

89.4 	ARTICLE 4
89.5 	COMMERCE

89.6 	Section 1. Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:
89.7 		Subdivision 1.Residential mortgage originator licensing requirements. (a) 
89.8 	No person shall act as a residential mortgage originator, or make residential mortgage 
89.9 	loans without first obtaining a license from the commissioner according to the licensing 
89.10 	procedures provided in this chapter.
89.11 	(b) A licensee must be either a partnership, limited liability partnership, association, 
89.12 	limited liability company, corporation, or other form of business organization, and must 
89.13 	have and maintain at all times one of the following: approval as a mortgagee by either the 
89.14 	federal Department of Housing and Urban Development or the Federal National Mortgage 
89.15 	Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety 
89.16 	bond or irrevocable letter of credit in the amount of $50,000 amounts prescribed under 
89.17 	section 58.08. Net worth, net of intangibles, must be calculated in accordance with 
89.18 	generally accepted accounting principles.
89.19 	(c) The following persons are exempt from the residential mortgage originator 
89.20 	licensing requirements:
89.21 	(1) a person who is not in the business of making residential mortgage loans and who 
89.22 	makes no more than three such loans, with its own funds, during any 12-month period;
89.23 	(2) a financial institution as defined in section 58.02, subdivision 10; 
89.24 	(3) an agency of the federal government, or of a state or municipal government;
89.25 	(4) an employee or employer pension plan making loans only to its participants;
89.26 	(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of 
89.27 	a specific order issued by a court of competent jurisdiction; or
89.28 	(6) a person exempted by order of the commissioner.

89.29 	EFFECTIVE DATE. This section is effective July 31, 2010.

89.30 	Sec. 2. Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended 
89.31 	to read:
89.32 		Subd. 2.Application contents. (a) The application must contain the name and 
89.33 	complete business address or addresses of the license applicant. The license applicant 
90.1 	must be a partnership, limited liability partnership, association, limited liability company, 
90.2 	corporation, or other form of business organization, and the application must contain the 
90.3 	names and complete business addresses of each partner, member, director, and principal 
90.4 	officer. The application must also include a description of the activities of the license 
90.5 	applicant, in the detail and for the periods the commissioner may require.
90.6 	(b) A residential mortgage originator applicant must submit one of the following:
90.7 	(1) evidence which shows, to the commissioner's satisfaction, that either the federal 
90.8 	Department of Housing and Urban Development or the Federal National Mortgage 
90.9 	Association has approved the residential mortgage originator applicant as a mortgagee;
90.10 	(2) a surety bond or irrevocable letter of credit in the amount of not less than 
90.11 	$50,000 in a form approved by the commissioner, issued by an insurance company or bank 
90.12 	authorized to do so in this state. The bond or irrevocable letter of credit must be available 
90.13 	for the recovery of expenses, fines, and fees levied by the commissioner under this chapter 
90.14 	and for losses incurred by borrowers. The bond or letter of credit must be submitted with 
90.15 	the license application, and evidence of continued coverage must be submitted with each 
90.16 	renewal. Any change in the bond or letter of credit must be submitted for approval by the 
90.17 	commissioner within ten days of its execution; or
90.18 	(3) a copy of the residential mortgage originator applicant's most recent audited 
90.19 	financial statement, including balance sheet, statement of income or loss, statements of 
90.20 	changes in shareholder equity, and statement of changes in financial position. Financial 
90.21 	statements must be as of a date within 12 months of the date of application a surety bond 
90.22 	that meets the requirements of section 58.08, subdivision 1a.
90.23 	(c) The application must also include all of the following:
90.24 	(1) an affirmation under oath that the applicant:
90.25 	(i) is in compliance with the requirements of section 58.125;
90.26 	(ii) will maintain a perpetual roster of individuals employed as residential mortgage 
90.27 	originators, including employees and independent contractors, which includes the dates 
90.28 	that mandatory testing, initial education, and continuing education were completed. In 
90.29 	addition, the roster must be made available to the commissioner on demand, within three 
90.30 	business days of the commissioner's request;
90.31 	(iii) will advise the commissioner of any material changes to the information 
90.32 	submitted in the most recent application within ten days of the change;
90.33 	(iv) (iii) will advise the commissioner in writing immediately of any bankruptcy 
90.34 	petitions filed against or by the applicant or licensee;
91.1 	(v) (iv) will maintain at all times either a net worth, net of intangibles, of at least 
91.2 	$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000
91.3 	$100,000;
91.4 	(vi) (v) complies with federal and state tax laws; and
91.5 	(vii) (vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed 
91.6 	property law; 
91.7 	(2) information as to the mortgage lending, servicing, or brokering experience of the 
91.8 	applicant and persons in control of the applicant;
91.9 	(3) information as to criminal convictions, excluding traffic violations, of persons in 
91.10 	control of the license applicant;
91.11 	(4) whether a court of competent jurisdiction has found that the applicant or persons 
91.12 	in control of the applicant have engaged in conduct evidencing gross negligence, fraud, 
91.13 	misrepresentation, or deceit in performing an act for which a license is required under 
91.14 	this chapter;
91.15 	(5) whether the applicant or persons in control of the applicant have been the subject 
91.16 	of: an order of suspension or revocation, cease and desist order, or injunctive order, or 
91.17 	order barring involvement in an industry or profession issued by this or another state or 
91.18 	federal regulatory agency or by the Secretary of Housing and Urban Development within 
91.19 	the ten-year period immediately preceding submission of the application; and
91.20 	(6) other information required by the commissioner.

91.21 	EFFECTIVE DATE. This section is effective July 31, 2010.

91.22 	Sec. 3. Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to 
91.23 	read:
91.24 		Subd. 1a.Residential mortgage originators. (a) An applicant for a residential 
91.25 	mortgage originator license must file with the department a surety bond in the amount of 
91.26 	$100,000, issued by an insurance company authorized to do so in this state. The bond 
91.27 	must cover all mortgage loan originators who are employees or independent agents of 
91.28 	the applicant. The bond must be available for the recovery of expenses, fines, and fees 
91.29 	levied by the commissioner under this chapter and for losses incurred by borrowers as 
91.30 	a result of a licensee's noncompliance with the requirements of this chapter, sections 
91.31 	325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities 
91.32 	regulated by this chapter.
91.33 	(b) The bond must be submitted with the originator's license application and 
91.34 	evidence of continued coverage must be submitted with each renewal. Any change in the 
92.1 	bond must be submitted for approval by the commissioner, within ten days of its execution. 
92.2 	The bond or a substitute bond shall remain in effect during all periods of licensing.
92.3 	(c) Upon filing of the mortgage call report as required by section 58A.17, a licensee 
92.4 	shall maintain or increase its surety bond to reflect the total dollar amount of the closed 
92.5 	residential mortgage loans originated in this state in the preceding year in accordance 
92.6 	with the table in this paragraph. A licensee may decrease its surety bond in accordance 
92.7 	with the table in this paragraph if the surety bond required is less than the amount of the 
92.8 	surety bond on file with the department.

92.992.10
	Dollar Amount of Closed Residential 
Mortgage Loans
	Surety Bond Required
	
92.11	$0 to $5,000,000
	$100,000
	
92.12	$5,000,000.01 to $10,000,000
	$125,000
	
92.13	$10,000,000.01 to $25,000,000
	$150,000
	
92.14	Over $25,000,000
	$200,000
	
92.15 	For purposes of this subdivision, "mortgage loan originator" has the meaning given 
92.16 	in section 58A.02, subdivision 7.

92.17 	EFFECTIVE DATE. This section is effective July 31, 2010.

92.18 	Sec. 4. Minnesota Statutes 2008, section 58.09, is amended to read:
92.19 	58.09 TERM OF LICENSE.
92.20 	Initial Licenses for residential mortgage originators and residential mortgage 
92.21 	servicers issued under this chapter expire on July 31, 2001, December 31 and are 
92.22 	renewable on August 1, 2001, and on August 1 January 1 of each odd-numbered year 
92.23 	after that date. A new licensee whose license expires less than 12 months from the date 
92.24 	of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in 
92.25 	section 58.10, subdivision 1, clause (1) or (3).

92.26 	EFFECTIVE DATE. This section is effective July 31, 2010.

92.27 	Sec. 5. Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:
92.28 		Subdivision 1.Amounts. The following fees must be paid to the commissioner:
92.29 	(1) for an initiala residential mortgage originator license, $2,125 $1,000, $50 of 
92.30 	which is credited to the consumer education account in the special revenue fund;
92.31 	(2) for a renewal license, $1,125 $500, $50 of which is credited to the consumer 
92.32 	education account in the special revenue fund;
92.33 	(3) for an initiala residential mortgage servicer's license, $1,000 $500;
92.34 	(4) for a renewal license, $500 $250; and
93.1 	(5) for a certificate of exemption, $100.

93.2 	EFFECTIVE DATE. This section is effective July 31, 2010.

93.3 	Sec. 6. Minnesota Statutes 2008, section 58.11, is amended to read:
93.4 	58.11 LICENSE RENEWAL.
93.5 		Subdivision 1.Term. Licenses are renewable on August 1, 2001, and on August 1
93.6 	January 1 of each odd-numbered year after that date.
93.7 		Subd. 2.Timely renewal. (a) A person whose application is properly and timely 
93.8 	filed who has not received notice of denial of renewal is considered approved for renewal 
93.9 	and the person may continue to transact business as a residential mortgage originator or 
93.10 	servicer whether or not the renewed license has been received on or before August January 
93.11 	1 of the renewal year. Application for renewal of a license is considered timely filed if 
93.12 	received by the commissioner by, or mailed with proper postage and postmarked by, July
93.13 	December 15 of the renewal year. An application for renewal is considered properly filed 
93.14 	if made upon forms duly executed and sworn to, accompanied by fees prescribed by this 
93.15 	chapter, and containing any information that the commissioner requires.
93.16 	(b) A person who fails to make a timely application for renewal of a license and 
93.17 	who has not received the renewal license as of August January 1 of the renewal year is 
93.18 	unlicensed until the renewal license has been issued by the commissioner and is received 
93.19 	by the person.
93.20 		Subd. 3.Contents of renewal application. Application for the renewal of an 
93.21 	existing license must contain the information specified in section 58.06, subdivision 2; 
93.22 	however, only the requested information having changed from the most recent prior 
93.23 	application need be submitted.  
93.24 		Subd. 4.Cancellation. A licensee ceasing an activity or activities regulated by this 
93.25 	chapter and desiring to no longer be licensed shall so inform the commissioner in writing 
93.26 	and, at the same time, surrender the license and all other symbols or indicia of licensure. 
93.27 	The licensee shall include a plan for the withdrawal from regulated business, including a 
93.28 	timetable for the disposition of the business.

93.29 	EFFECTIVE DATE. This section is effective July 31, 2010.

93.30 	Sec. 7. [58A.01] TITLE.
93.31 	This chapter may be cited as the "Minnesota Secure and Fair Enforcement for 
93.32 	Mortgage Licensing Act of 2010" or "Minnesota S.A.F.E. Mortgage Licensing Act of 
93.33 	2010."

94.1 	EFFECTIVE DATE. This section is effective July 31, 2010.

94.2 	Sec. 8. [58A.02] DEFINITIONS.
94.3 		Subdivision 1.Application. For purposes of this chapter, the definitions in 
94.4 	subdivisions 2 to 15 have the meanings given them.
94.5 		Subd. 2.Depository institution. "Depository institution" has the meaning given in 
94.6 	United States Code, title 12, section 1813, and includes a credit union.
94.7 		Subd. 3.Federal banking agencies. "Federal banking agencies" means the Board 
94.8 	of Governors of the Federal Reserve System, the comptroller of the currency, the director 
94.9 	of the Office of Thrift Supervision, the National Credit Union Administration, and the 
94.10 	Federal Deposit Insurance Corporation.
94.11 		Subd. 4.Immediate family member. "Immediate family member" means a spouse, 
94.12 	child, sibling, parent, grandparent, or grandchild. This includes stepparents, stepchildren, 
94.13 	stepsiblings, and adoptive relationships.
94.14 		Subd. 5.Individual. "Individual" means a natural person.
94.15 		Subd. 6.Loan processor or underwriter. "Loan processor or underwriter" means 
94.16 	an individual who performs clerical or support duties as an employee at the direction 
94.17 	of and subject to the supervision and instruction of a person licensed or exempt from 
94.18 	licensing under chapter 58. For purposes of this subdivision, the term "clerical or support 
94.19 	duties" may include after the receipt of an application:
94.20 	(1) the receipt, collection, distribution, and analysis of information common for the 
94.21 	processing or underwriting of a residential mortgage loan; and
94.22 	(2) communicating with a consumer to obtain the information necessary for the 
94.23 	processing or underwriting of a loan, to the extent that the communication does not include 
94.24 	offering or negotiating loan rates or terms, or counseling consumers about residential 
94.25 	mortgage loan rates or terms.
94.26 		Subd. 7.Mortgage loan originator. "Mortgage loan originator":
94.27 	(1) means an individual who for compensation or gain or in the expectation of 
94.28 	compensation or gain:
94.29 	(i) takes a residential mortgage loan application; or
94.30 	(ii) offers or negotiates terms of a residential mortgage loan;
94.31 	(2) does not include an individual engaged solely as a loan processor or underwriter 
94.32 	except as otherwise provided in section 58A.03, subdivision 3;
94.33 	(3) does not include a person or entity that only performs real estate brokerage 
94.34 	activities and is licensed or registered according to Minnesota law, unless the person or 
95.1 	entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or 
95.2 	by an agent of the lender, mortgage broker, or other mortgage loan originator; 
95.3 	(4) does not include a person or entity solely involved in extensions of credit 
95.4 	relating to timeshare plans, as that term is defined in United States Code, title 11, section 
95.5 	101(53D); and
95.6 	(5) does not include a licensed manufactured home retailer, licensed limited retailer, 
95.7 	or salesperson selling manufactured or modular homes, provided that person only assists 
95.8 	the consumer in filling out a loan application and does not offer or negotiate loan rates or 
95.9 	terms, does not do any counseling with consumers about residential mortgage loan rates 
95.10 	or terms, and does not receive any payment or fee from any company or individual for 
95.11 	assisting the consumer.
95.12 		Subd. 8.Nationwide Mortgage Licensing System and Registry. "Nationwide 
95.13 	Mortgage Licensing System and Registry" means a mortgage licensing system developed 
95.14 	and maintained by the Conference of State Bank Supervisors and the American 
95.15 	Association of Residential Mortgage Regulators for the licensing and registration of 
95.16 	licensed mortgage loan originators.
95.17 		Subd. 9.Nontraditional mortgage product. "Nontraditional mortgage product" 
95.18 	means a mortgage product other than a 30-year fixed rate mortgage loan.
95.19 		Subd. 10.Person. "Person" means a natural person, corporation, company, limited 
95.20 	liability company, partnership, or association.
95.21 		Subd. 11.Real estate brokerage activity. "Real estate brokerage activity" means 
95.22 	an activity that involves offering or providing real estate brokerage services to the public, 
95.23 	including:
95.24 	(1) acting as a real estate agent or real estate broker for a buyer, seller, lessor, 
95.25 	or lessee of real property;
95.26 	(2) bringing together parties interested in the sale, purchase, lease, rental, or 
95.27 	exchange of real property;
95.28 	(3) negotiating, on behalf of a party, a portion of a contract relating to the sale, 
95.29 	purchase, lease, rental, or exchange of real property other than in connection with 
95.30 	providing financing with respect to the transaction;
95.31 	(4) engaging in an activity for which a person engaged in the activity is required to 
95.32 	be registered or licensed as a real estate agent or real estate broker under any applicable 
95.33 	law; and
95.34 	(5) offering to engage in any activity, or act in any capacity, described in clause 
95.35 	(1), (2), (3), or (4).
96.1 		Subd. 12.Registered mortgage loan originator. "Registered mortgage loan 
96.2 	originator" means an individual who:
96.3 	(1) meets the definition of mortgage loan originator and is an employee of:
96.4 	(i) a depository institution;
96.5 	(ii) a subsidiary that is owned and controlled by a depository institution and 
96.6 	regulated by a federal banking agency; or
96.7 	(iii) an institution regulated by the Farm Credit Administration; and
96.8 	(2) is registered with, and maintains a unique identifier through, the Nationwide 
96.9 	Mortgage Licensing System and Registry.
96.10 		Subd. 13.Residential mortgage loan. "Residential mortgage loan" means a loan 
96.11 	primarily for personal, family, or household use that is secured by a mortgage, deed of 
96.12 	trust, or other equivalent consensual security interest on a dwelling, as defined in United 
96.13 	States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is 
96.14 	constructed or intended to be constructed.
96.15 		Subd. 14.Residential real estate. "Residential real estate" means real property 
96.16 	located in Minnesota, upon which a dwelling is constructed or is intended to be 
96.17 	constructed.
96.18 		Subd. 15.Unique identifier. "Unique identifier" means a number or other identifier 
96.19 	assigned by protocols established by the Nationwide Mortgage Licensing System and 
96.20 	Registry.

96.21 	EFFECTIVE DATE. This section is effective July 31, 2010.

96.22 	Sec. 9. [58A.03] LICENSE AND REGISTRATION REQUIRED.
96.23 		Subdivision 1.Generally. An individual, unless specifically exempted from this 
96.24 	chapter under subdivision 2, shall not engage in the business of a mortgage loan originator 
96.25 	with respect to a dwelling located in this state without first obtaining and maintaining a 
96.26 	license under this chapter. An individual may not engage in the mortgage loan business 
96.27 	unless the individual is employed and supervised by an entity which is either licensed 
96.28 	or exempt from licensing under chapter 58. A licensed mortgage loan originator must 
96.29 	register with and maintain a valid unique identifier issued by the Nationwide Mortgage 
96.30 	Licensing System and Registry.
96.31 		Subd. 2.Exemptions. The following are exempt from this chapter:
96.32 	(1) a registered mortgage loan originator, when acting for an entity described in 
96.33 	section 58A.02, subdivision 12, clause (1);
96.34 	(2) an individual who offers or negotiates terms of a residential mortgage loan with 
96.35 	or on behalf of an immediate family member of the individual;
97.1 	(3) an individual who offers or negotiates terms of a residential mortgage loan 
97.2 	secured by a dwelling that served as the individual's residence; and
97.3 	(4) a licensed attorney who negotiates the terms of a residential mortgage loan 
97.4 	on behalf of a client as an ancillary matter to the attorney's representation of the client, 
97.5 	unless the attorney is compensated by a lender, a mortgage broker, or other mortgage 
97.6 	loan originator or by any agent of the lender, mortgage broker, or other mortgage loan 
97.7 	originator.
97.8 		Subd. 3.Independent contractor loan processors or underwriters. A loan 
97.9 	processor or underwriter who is an independent contractor may not engage in the activities 
97.10 	of a loan processor or underwriter unless the independent contractor loan processor 
97.11 	or underwriter obtains and maintains a license under subdivision 1. An independent 
97.12 	contractor loan processor or underwriter licensed as a mortgage loan originator must have 
97.13 	and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing 
97.14 	System and Registry.

97.15 	EFFECTIVE DATE. In order to facilitate an orderly transition to licensing and 
97.16 	minimize disruption in the mortgage marketplace, the effective date for subdivision 1 
97.17 	is July 31, 2010, or a later date approved by the Secretary of the U.S. Department of 
97.18 	Housing and Urban Development, under the authority granted in Public Law 110-289, 
97.19 	section 1508(a).

97.20 	Sec. 10. [58A.04] STATE LICENSE AND REGISTRATION APPLICATION 
97.21 	AND ISSUANCE.
97.22 		Subdivision 1.Application form. An applicant for a license shall apply in a form 
97.23 	as prescribed by the commissioner. The form must contain content as set forth by rule, 
97.24 	instruction, or procedure of the commissioner and may be changed or updated as necessary 
97.25 	by the commissioner in order to carry out the purposes of this chapter.
97.26 		Subd. 2.Commissioner may establish relationships or contracts. In order 
97.27 	to fulfill the purposes of this chapter, the commissioner is authorized to establish 
97.28 	relationships or contracts with the Nationwide Mortgage Licensing System and Registry 
97.29 	or other entities designated by the Nationwide Mortgage Licensing System and Registry to 
97.30 	collect and maintain records and process transaction fees or other fees related to licensees 
97.31 	or other persons subject to this chapter.
97.32 		Subd. 3.Waive or modify requirements. For the purpose of participating in the 
97.33 	Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to 
97.34 	waive or modify, in whole or in part, by rule or order, any or all of the requirements of 
98.1 	this chapter and to establish new requirements as reasonably necessary to participate in 
98.2 	the Nationwide Mortgage Licensing System and Registry.
98.3 		Subd. 4.Background checks. In connection with an application for licensing as a 
98.4 	mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide 
98.5 	Mortgage Licensing System and Registry information concerning the applicant's identity, 
98.6 	including:
98.7 	(1) fingerprints for submission to the Federal Bureau of Investigation, and a 
98.8 	governmental agency or entity authorized to receive the information for a state, national, 
98.9 	and international criminal history background check; and
98.10 	(2) personal history and experience in a form prescribed by the Nationwide 
98.11 	Mortgage Licensing System and Registry, including the submission of authorization for 
98.12 	the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
98.13 	(i) an independent credit report obtained from a consumer reporting agency 
98.14 	described in United States Code, title 15, section 1681a(p); and
98.15 	(ii) information related to administrative, civil, or criminal findings by a 
98.16 	governmental jurisdiction.
98.17 		Subd. 5.Agent for purposes of requesting and distributing criminal 
98.18 	information. For the purposes of this section and in order to reduce the points of 
98.19 	contact which the Federal Bureau of Investigation may have to maintain for purposes of 
98.20 	subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage 
98.21 	Licensing System and Registry as a channeling agent for requesting information from and 
98.22 	distributing information to the Department of Justice or any governmental agency.
98.23 		Subd. 6.Agent for purposes of requesting and distributing noncriminal 
98.24 	information. For the purposes of this section and in order to reduce the points of contact 
98.25 	which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i) 
98.26 	and (ii), the commissioner may use the Nationwide Mortgage Licensing System and 
98.27 	Registry as a channeling agent for requesting and distributing information to and from any 
98.28 	source so directed by the commissioner.

98.29 	EFFECTIVE DATE. This section is effective July 31, 2010.

98.30 	Sec. 11. [58A.045] TERM OF LICENSE AND FEES.
98.31 		Subdivision 1.Term. Licenses for mortgage loan originators issued under this 
98.32 	chapter expire on December 31 and are renewable on January 1 of each year after that date.
98.33 		Subd. 2.Fees. The following fees must be paid to the commissioner:
98.34 	(1) for a mortgage loan originator license, $100; and
98.35 	(2) for a renewal mortgage loan originator license, $50.

99.1 	EFFECTIVE DATE. This section is effective July 31, 2010.

99.2 	Sec. 12. [58A.05] ISSUANCE OF LICENSE.
99.3 	The commissioner shall not issue a mortgage loan originator license unless the 
99.4 	commissioner finds, at a minimum, that:
99.5 	(1) the applicant has never had a mortgage loan originator license revoked in a 
99.6 	governmental jurisdiction, except that a subsequent formal vacation of a revocation shall 
99.7 	not be deemed a revocation;
99.8 	(2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a 
99.9 	felony in a domestic, foreign, or military court:
99.10 	(i) during the seven-year period preceding the date of the application for licensing 
99.11 	and registration;
99.12 	(ii) at any time preceding the date of application, if the felony involved an act of 
99.13 	fraud, dishonesty, or a breach of trust, or money laundering; or
99.14 	(iii) provided that a pardon of a conviction is not a conviction for purposes of this 
99.15 	clause;
99.16 	(3) the applicant has demonstrated financial responsibility, character, and general 
99.17 	fitness such as to command the confidence of the community and to warrant a 
99.18 	determination that the mortgage loan originator will operate honestly, fairly, and efficiently 
99.19 	within the purposes of this chapter. For purposes of this chapter, a person has shown that 
99.20 	the person is not financially responsible when the person has shown a disregard in the 
99.21 	management of the person's own financial condition. A determination that an individual 
99.22 	has not shown financial responsibility may include, but is not limited to:
99.23 	(i) current outstanding judgments, except judgments solely as a result of medical 
99.24 	expenses;
99.25 	(ii) current outstanding tax liens or other government liens and filings;
99.26 	(iii) foreclosures within the past three years; and
99.27 	(iv) a pattern of seriously delinquent accounts within the past three years;
99.28 	(4) the applicant has completed the prelicensing education requirement described 
99.29 	in section 58A.06;
99.30 	(5) the applicant has passed a written test that meets the test requirement described 
99.31 	in section 58A.07; and
99.32 	(6) the applicant has met the surety bond requirement as required under section 
99.33 	58A.13.

99.34 	EFFECTIVE DATE. This section is effective July 31, 2010.

100.1 	Sec. 13. [58A.06] PRELICENSING AND RELICENSING EDUCATION OF 
100.2 	LOAN ORIGINATORS.
100.3 		Subdivision 1.Minimum educational requirements. In order to meet the 
100.4 	prelicensing education requirement referred to in section 58A.05, clause (4), a person 
100.5 	shall complete at least 20 hours of education approved according to subdivision 2, that 
100.6 	includes at least:
100.7 	(1) three hours of federal law and regulations;
100.8 	(2) three hours of ethics, which includes instruction on fraud, consumer protection, 
100.9 	and fair lending issues; and
100.10 	(3) two hours of training related to lending standards for the nontraditional mortgage 
100.11 	product marketplace.
100.12 		Subd. 2.Approved educational courses. For purposes of subdivision 1, 
100.13 	prelicensing education courses must be reviewed and approved by the Nationwide 
100.14 	Mortgage Licensing System and Registry based upon reasonable standards. Review 
100.15 	and approval of a prelicensing education course must include review and approval of 
100.16 	the course provider.
100.17 		Subd. 3.Approval of employer and affiliate educational courses. Nothing in 
100.18 	this section precludes a prelicensing education course, as approved by the Nationwide 
100.19 	Mortgage Licensing System and Registry, that is provided by the employer of the applicant 
100.20 	or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or 
100.21 	affiliate of the employer or entity.
100.22 		Subd. 4.Venue of education. Prelicensing education may be offered in a classroom, 
100.23 	online, or by any other means approved by the Nationwide Mortgage Licensing System 
100.24 	and Registry.
100.25 		Subd. 5.Reciprocity of education. The prelicensing education requirements 
100.26 	approved by the Nationwide Mortgage Licensing System and Registry in subdivision 
100.27 	1 for a state must be accepted as credit toward completion of prelicensing education 
100.28 	requirements in Minnesota.
100.29 		Subd. 6.Relicensing education requirements. A person previously licensed under 
100.30 	this chapter after the effective date of this chapter applying to be licensed again must 
100.31 	prove that the person has completed all of the continuing education requirements for 
100.32 	the year in which the license was last held.

100.33 	EFFECTIVE DATE. This section is effective July 31, 2010.

100.34 	Sec. 14. [58A.07] TESTING OF LOAN ORIGINATORS.
101.1 		Subdivision 1.Generally. In order to meet the written test requirement referred to 
101.2 	in section 58A.05, clause (5), an individual shall pass, in accordance with the standards 
101.3 	established under this section, a qualified written test developed by the Nationwide 
101.4 	Mortgage Licensing System and Registry and administered by a test provider approved 
101.5 	by the Nationwide Mortgage Licensing System and Registry based upon reasonable 
101.6 	standards.
101.7 		Subd. 2.Qualified test. A written test must not be treated as a qualified written 
101.8 	test for purposes of subdivision 1 unless the test adequately measures the applicant's 
101.9 	knowledge and comprehension in appropriate subject areas, including:
101.10 	(1) ethics;
101.11 	(2) federal law and regulation pertaining to mortgage origination;
101.12 	(3) state law and rule pertaining to mortgage origination; and
101.13 	(4) federal and state law and rule, including instruction on fraud, consumer 
101.14 	protection, the nontraditional mortgage marketplace, and fair lending issues.
101.15 		Subd. 3.Testing location. Northing in this section prohibits a test provider approved 
101.16 	by the Nationwide Mortgage Licensing System and Registry from providing a test at the 
101.17 	location of the employer of the applicant or the location of a subsidiary or affiliate of the 
101.18 	employer of the applicant, or the location of an entity with which the applicant holds an 
101.19 	exclusive arrangement to conduct the business of a mortgage loan originator.
101.20 		Subd. 4.Minimum competence. (a) An individual is not considered to have 
101.21 	passed a qualified written test unless the individual achieves a test score of not less than 
101.22 	75 percent correct answers to questions.
101.23 	(b) An individual may retake a test three consecutive times with each consecutive 
101.24 	taking occurring at least 30 days after the preceding test.
101.25 	(c) After failing three consecutive tests, an individual shall wait at least six months 
101.26 	before taking the test again.
101.27 	(d) A licensed mortgage loan originator who fails to maintain a valid license for a 
101.28 	period of five years or longer shall retake the test, not taking into account any time during 
101.29 	which the individual is a registered mortgage loan originator.

101.30 	EFFECTIVE DATE. This section is effective July 31, 2010.

101.31 	Sec. 15. [58A.08] STANDARDS FOR LICENSE RENEWAL.
101.32 		Subdivision 1.Generally. The minimum standards for license renewal for a 
101.33 	mortgage loan originator include that the mortgage loan originator:
101.34 	(1) continues to meet the minimum standards for license issuance under section 
101.35 	58A.05;
102.1 	(2) has satisfied the annual continuing education requirements described in section 
102.2 	58A.09; and
102.3 	(3) has paid all required fees for renewal of the license.
102.4 		Subd. 2.Failure to satisfy minimum standards of license renewal. The license of 
102.5 	a mortgage loan originator failing to satisfy the minimum standards for license renewal 
102.6 	expires. The commissioner may adopt procedures for the reinstatement of expired licenses 
102.7 	consistent with the standards established by the Nationwide Mortgage Licensing System 
102.8 	and Registry.

102.9 	EFFECTIVE DATE. This section is effective July 31, 2010.

102.10 	Sec. 16. [58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN 
102.11 	ORIGINATORS.
102.12 		Subdivision 1.Generally. In order to meet the annual continuing education 
102.13 	requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage 
102.14 	loan originator shall complete at least eight hours of education approved according to 
102.15 	subdivision 2 that includes at least:
102.16 	(1) three hours of federal law and regulations;
102.17 	(2) two hours of ethics, which includes instruction on fraud, consumer protection, 
102.18 	and fair lending issues; and
102.19 	(3) two hours of training related to lending standards for the nontraditional mortgage 
102.20 	product marketplace.
102.21 		Subd. 2.Approved educational courses. For purposes of subdivision 1, continuing 
102.22 	education courses must be reviewed and approved by the Nationwide Mortgage Licensing 
102.23 	System and Registry based upon reasonable standards. Review and approval of a 
102.24 	continuing education course must include review and approval of the course provider.
102.25 		Subd. 3.Approval of employer and affiliate educational courses. Nothing in 
102.26 	this section precludes an education course, as approved by the Nationwide Mortgage 
102.27 	Licensing System and Registry, that is provided by the employer of the mortgage loan 
102.28 	originator or an entity that is affiliated with the mortgage loan originator by an agency 
102.29 	contract, or a subsidiary or affiliate of the employer or entity.
102.30 		Subd. 4.Venue of education. Continuing education may be offered either in a 
102.31 	classroom, online, or by other means approved by the Nationwide Mortgage Licensing 
102.32 	System and Registry.
102.33 		Subd. 5.Calculation of continuing education credits. A licensed mortgage loan 
102.34 	originator:
103.1 	(1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive 
103.2 	credit for a continuing education course in the year in which the course is taken; and
103.3 	(2) may not take the same approved course in the same or successive years to meet 
103.4 	the annual requirements for continuing education.
103.5 		Subd. 6.Instructor credit. A licensed mortgage loan originator who is an approved 
103.6 	instructor of an approved continuing education course may receive credit for the licensed 
103.7 	mortgage loan originator's own annual continuing education requirement at the rate of 
103.8 	two hours credit for every one hour taught.
103.9 		Subd. 7.Reciprocity of education. A person having successfully completed the 
103.10 	education requirements approved by the Nationwide Mortgage Licensing System and 
103.11 	Registry in subdivision 1 for a state must be accepted as credit toward completion of 
103.12 	continuing education requirements in Minnesota.
103.13 		Subd. 8.Lapse in license. A licensed mortgage loan originator who subsequently 
103.14 	becomes unlicensed must complete the continuing education requirements for the last year 
103.15 	in which the license was held before a new or renewed license is issued.
103.16 		Subd. 9.Deficiency. A person meeting the requirements of section 58A.08, 
103.17 	subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as 
103.18 	established by rule of the commissioner.

103.19 	EFFECTIVE DATE. This section is effective July 31, 2010.

103.20 	Sec. 17. [58A.10] AUTHORITY TO REQUIRE LICENSE.
103.21 	In addition to any other duties imposed upon the commissioner by law, the 
103.22 	commissioner shall require mortgage loan originators to be licensed and registered 
103.23 	through the Nationwide Mortgage Licensing System and Registry. In order to carry out 
103.24 	this requirement, the commissioner may participate in the Nationwide Mortgage Licensing 
103.25 	System and Registry. For this purpose, the commissioner may establish by rule or order 
103.26 	requirements as necessary, including but not limited to:
103.27 	(1) background checks for:
103.28 	(i) criminal history through fingerprint or other databases;
103.29 	(ii) civil or administrative records;
103.30 	(iii) credit history; or
103.31 	(iv) other information as determined necessary by the Nationwide Mortgage 
103.32 	Licensing System and Registry;
103.33 	(2) the payment of fees to apply for or renew licenses through the Nationwide 
103.34 	Mortgage Licensing System and Registry;
103.35 	(3) the setting or resetting as necessary of renewal or reporting dates; and
104.1 	(4) requirements for amending or surrendering a license or other activities the 
104.2 	commissioner considers necessary for participation in the Nationwide Mortgage Licensing 
104.3 	System and Registry.

104.4 	EFFECTIVE DATE. This section is effective July 31, 2010.

104.5 	Sec. 18. [58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND 
104.6 	REGISTRY INFORMATION CHALLENGE PROCESS.
104.7 	The commissioner shall establish a process that allows mortgage loan originators 
104.8 	to challenge information entered into the Nationwide Mortgage Licensing System and 
104.9 	Registry by the commissioner.

104.10 	EFFECTIVE DATE. This section is effective July 31, 2010.

104.11 	Sec. 19. [58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND 
104.12 	PENALTIES.
104.13 	(a) In order to ensure the effective supervision and enforcement of this chapter, the 
104.14 	commissioner may, pursuant to chapter 14:
104.15 	(1) deny, suspend, revoke, condition, or decline to renew a license for a violation of 
104.16 	this chapter, rules issued under this chapter, or order or directive entered under this chapter;
104.17 	(2) deny, suspend, revoke, condition, or decline to renew a license if an applicant 
104.18 	or licensee fails at any time to meet the requirements of section 58A.05 or 58A.08, or 
104.19 	withholds information or makes a material misstatement in an application for a license 
104.20 	or renewal of a license;
104.21 	(3) order restitution against persons subject to this chapter for violations of this 
104.22 	chapter;
104.23 	(4) impose fines on persons subject to this chapter pursuant to paragraphs (b) 
104.24 	to (d); and
104.25 	(5) issue orders or directives under this chapter as follows:
104.26 	(i) order or direct persons subject to this chapter to cease and desist from conducting 
104.27 	business, including immediate temporary orders to cease and desist;
104.28 	(ii) order or direct persons subject to this chapter to cease any harmful activities or 
104.29 	violations of this chapter, including immediate temporary orders to cease and desist;
104.30 	(iii) enter immediate temporary orders to cease business under a license or interim 
104.31 	license issued pursuant to the authority granted under section 58A.04 if the commissioner 
104.32 	determines that the license was erroneously granted or the licensee is currently in violation 
104.33 	of this chapter; and
105.1 	(iv) order or direct other affirmative action the commissioner considers necessary.
105.2 	(b) The commissioner may impose a civil penalty on a mortgage loan originator or 
105.3 	person subject to this chapter, if the commissioner finds, on the record after notice and 
105.4 	opportunity for hearing, that the mortgage loan originator or person subject to this chapter 
105.5 	has violated or failed to comply with any requirement of this chapter or any rule prescribed 
105.6 	by the commissioner under this chapter or order issued under authority of this chapter.
105.7 	(c) The maximum amount of penalty for each act or omission described in paragraph 
105.8 	(b) is $25,000.
105.9 	(d) Each violation or failure to comply with any directive or order of the 
105.10 	commissioner is a separate and distinct violation or failure.

105.11 	EFFECTIVE DATE. This section is effective July 31, 2010.

105.12 	Sec. 20. [58A.13] SURETY BOND REQUIRED.
105.13 		Subdivision 1.Coverage, form, and rules. (a) Each mortgage loan originator must 
105.14 	be covered by a surety bond meeting the requirements of this section. In the event that 
105.15 	the mortgage loan originator is an employee or exclusive agent of a person subject to this 
105.16 	chapter, the surety bond of the person subject to this chapter can be used in lieu of the 
105.17 	mortgage loan originator's surety bond requirement.
105.18 	(b) The surety bond shall provide coverage for each mortgage loan originator in 
105.19 	an amount as prescribed in subdivision 2.
105.20 	(c) The surety bond must be in a form as prescribed by the commissioner.
105.21 		Subd. 2.Penal sum of surety bond. The penal sum of the surety bond must be 
105.22 	maintained in an amount that reflects the dollar amount of loans originated as determined 
105.23 	by the commissioner.
105.24 		Subd. 3.Action on bond. When an action is commenced on a licensee's bond the 
105.25 	commissioner may require the filing of a new bond.
105.26 		Subd. 4.New bond. Immediately upon recovery upon any action on the bond 
105.27 	the licensee shall file a new bond.

105.28 	EFFECTIVE DATE. This section is effective July 31, 2010.

105.29 	Sec. 21. [58A.14] CONFIDENTIALITY.
105.30 		Subdivision 1.Protections. Except as otherwise provided in Public Law 110-289, 
105.31 	section 1512, the requirements under chapter 13 or any federal law regarding the privacy 
105.32 	or confidentiality of any information or material provided to the Nationwide Mortgage 
105.33 	Licensing System and Registry, and any privilege arising under federal or state law, 
106.1 	including the rules of any federal or state court, with respect to the information or material, 
106.2 	continue to apply to the information or material after the information or material has been 
106.3 	disclosed to the Nationwide Mortgage Licensing System and Registry. The information 
106.4 	and material may be shared with all state and federal regulatory officials with mortgage 
106.5 	industry oversight authority without the loss of privilege or the loss of confidentiality 
106.6 	protections provided by chapter 13 or federal law.
106.7 		Subd. 2.Agreements and sharing arrangements. For purposes of this section, 
106.8 	the commissioner is authorized to enter agreements or sharing arrangements with 
106.9 	other governmental agencies, the Conference of State Bank Supervisors, the American 
106.10 	Association of Residential Mortgage Regulators, or other associations representing 
106.11 	governmental agencies as established by rule or order of the commissioner.
106.12 		Subd. 3.Nonapplicability of certain requirements. Information or material that is 
106.13 	subject to a privilege or confidentiality under subdivision 1 is not subject to:
106.14 	(1) disclosure under any federal or state law governing the disclosure to the public of 
106.15 	information held by an officer or an agency of the federal government or the respective 
106.16 	state; or
106.17 	(2) subpoena or discovery, or admission into evidence, in any private civil action 
106.18 	or administrative process, unless with respect to any privilege held by the Nationwide 
106.19 	Mortgage Licensing System and Registry with respect to the information or material, 
106.20 	the person to whom the information or material pertains waives, in whole or in part, in 
106.21 	the discretion of the person, that privilege.
106.22 		Subd. 4.Coordination with Minnesota Government Data Practices Act. Chapter 
106.23 	13 relating to the disclosure of confidential supervisory information or any information or 
106.24 	material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by 
106.25 	the requirements of this section.
106.26 		Subd. 5.Public access to information. This section does not apply with respect to 
106.27 	the information or material relating to the employment history of, and publicly adjudicated 
106.28 	disciplinary and enforcement actions against, mortgage loan originators that are included 
106.29 	in the Nationwide Mortgage Licensing System and Registry for access by the public.

106.30 	EFFECTIVE DATE. This section is effective July 31, 2010.

106.31 	Sec. 22. [58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.
106.32 		Subdivision 1.Generally. In addition to any authority allowed under this chapter, 
106.33 	the commissioner may conduct investigations and examinations according to subdivisions 
106.34 	2 to 9.
107.1 		Subd. 2.Authority to access information. For purposes of initial licensing, license 
107.2 	renewal, license suspension, license conditioning, license revocation or termination, or 
107.3 	general or specific inquiry or investigation to determine compliance with this chapter, the 
107.4 	commissioner may access, receive, and use any books, accounts, records, files, documents, 
107.5 	information, or evidence including but not limited to:
107.6 	(1) criminal, civil, and administrative history information, including nonconviction 
107.7 	data;
107.8 	(2) personal history and experience information including independent credit reports 
107.9 	obtained from a consumer reporting agency described in United States Code, title 15, 
107.10 	section 1681a(p); and
107.11 	(3) any other documents, information, or evidence the commissioner considers 
107.12 	relevant to the inquiry or investigation regardless of the location, possession, control, or 
107.13 	custody of the documents, information, or evidence.
107.14 		Subd. 3.Investigation, examination, and subpoena authority. For the purposes 
107.15 	of investigating violations or complaints arising under this chapter, or for the purposes of 
107.16 	examination, the commissioner may review, investigate, or examine a licensee, individual, 
107.17 	or person subject to this chapter, as often as necessary in order to carry out the purposes 
107.18 	of this chapter. The commissioner may direct, subpoena, or order the attendance of and 
107.19 	examine under oath all persons whose testimony may be required about the loans or the 
107.20 	business or subject matter of any such examination or investigation, and may direct, 
107.21 	subpoena, or order such person to produce books, accounts, records, files, and any other 
107.22 	documents the commissioner considers relevant to the inquiry.
107.23 		Subd. 4.Availability of books and records. A licensee, individual, or person 
107.24 	subject to this chapter shall make available to the commissioner upon request the books 
107.25 	and records relating to the operations of the licensee, individual, or person subject to this 
107.26 	chapter. The commissioner shall have access to the books and records and interview 
107.27 	the officers, principals, mortgage loan originators, employees, independent contractors, 
107.28 	agents, and customers of the licensee, individual, or person subject to this chapter 
107.29 	concerning the licensee's, individual's, or person's business.
107.30 		Subd. 5.Reports and other information as directed. A licensee, individual, or 
107.31 	person subject to this chapter shall make or compile reports or prepare other information 
107.32 	as directed by the commissioner in order to carry out the purposes of this section including 
107.33 	but not limited to:
107.34 	(1) accounting compilations;
107.35 	(2) information lists and data concerning loan transactions in a format prescribed 
107.36 	by the commissioner; or
108.1 	(3) other information the commissioner considers necessary to carry out the 
108.2 	purposes of this section.
108.3 		Subd. 6.Control access to records. In making an examination or investigation 
108.4 	authorized by this chapter, the commissioner may control access to documents and records 
108.5 	of the licensee or person under examination or investigation. The commissioner may 
108.6 	take possession of the documents and records or place a person in exclusive charge of 
108.7 	the documents and records in the place where they are usually kept. During the period of 
108.8 	control, no individual or person shall remove or attempt to remove any of the documents 
108.9 	and records except pursuant to a court order or with the consent of the commissioner. 
108.10 	Unless the commissioner has reasonable grounds to believe the documents or records 
108.11 	of the licensee have been, or are at risk of being, altered or destroyed for purposes of 
108.12 	concealing a violation of this chapter, the licensee or owner of the documents and records 
108.13 	has access to the documents or records as necessary to conduct its ordinary business affairs.
108.14 		Subd. 7.Additional authority. In order to carry out the purposes of this section, 
108.15 	the commissioner may:
108.16 	(1) retain attorneys, accountants, or other professionals and specialists as examiners, 
108.17 	auditors, or investigators to conduct or assist in the conduct of examinations or 
108.18 	investigations;
108.19 	(2) enter into agreements or relationships with other government officials or 
108.20 	regulatory associations in order to improve efficiencies and reduce regulatory burden 
108.21 	by sharing resources, standardized or uniform methods or procedures, and documents, 
108.22 	records, information, or evidence obtained under this section;
108.23 	(3) use, hire, contract, or employ public or privately available analytical systems, 
108.24 	methods, or software to examine or investigate the licensee, individual, or person subject 
108.25 	to this chapter;
108.26 	(4) accept and rely on examination or investigation reports made by other 
108.27 	government officials, within or without this state; or
108.28 	(5) accept audit reports made by an independent certified public accountant for the 
108.29 	licensee, individual, or person subject to this chapter in the course of that part of the 
108.30 	examination covering the same general subject matter as the audit and incorporate the 
108.31 	audit report in the report of the examination, report of investigation or other writing of 
108.32 	the commissioner.
108.33 		Subd. 8.Effect of authority. The authority of this section remains in effect, 
108.34 	whether a licensee, individual, or person subject to this chapter acts or claims to act under 
108.35 	any licensing or registration law of this state, or claims to act without such authority.
109.1 		Subd. 9.Withhold records. A licensee, individual, or person subject to 
109.2 	investigation or examination under this section shall not knowingly withhold, abstract, 
109.3 	remove, mutilate, destroy, or secrete any books, records, computer records, or other 
109.4 	information.

109.5 	EFFECTIVE DATE. This section is effective July 31, 2010.

109.6 	Sec. 23. [58A.16] PROHIBITED ACTS AND PRACTICES.
109.7 		Subdivision 1.Generally. It is a violation of this chapter for a person or individual 
109.8 	subject to this chapter to:
109.9 	(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead 
109.10 	borrowers or lenders or to defraud any person;
109.11 	(2) engage in any unfair or deceptive practice toward any person;
109.12 	(3) obtain property by fraud or misrepresentation;
109.13 	(4) solicit or enter into a contract with a borrower that provides in substance that the 
109.14 	person or individual subject to this chapter may earn a fee or commission through "best 
109.15 	efforts" to obtain a loan even though no loan is actually obtained for the borrower;
109.16 	(5) solicit, advertise, or enter into a contract for specific interest rates, points, or 
109.17 	other financing terms unless the terms are actually available at the time of soliciting, 
109.18 	advertising, or contracting;
109.19 	(6) conduct any business covered by this chapter without holding a valid license as 
109.20 	required under this chapter, or assist or aide and abet any person in the conduct of business 
109.21 	under this chapter without a valid license as required under this chapter;
109.22 	(7) fail to make disclosures as required by this chapter and any other applicable 
109.23 	state or federal law or regulations;
109.24 	(8) fail to comply with this chapter or rules adopted under this chapter or fail 
109.25 	to comply with any other state or federal law or regulations applicable to any business 
109.26 	authorized or conducted under this chapter;
109.27 	(9) make, in any manner, any false or deceptive statement or representation 
109.28 	including, with regard to the rates, points, or other financing terms or conditions for a 
109.29 	residential mortgage loan; or engage in bait-and-switch advertising;
109.30 	(10) negligently make a false statement or knowingly and willfully make an omission 
109.31 	of material fact in connection with any information or reports filed with a governmental 
109.32 	agency or the Nationwide Mortgage Licensing System and Registry or in connection with 
109.33 	an investigation conducted by the commissioner or another governmental agency;
109.34 	(11) make a payment, threat, or promise, directly or indirectly, to a person for the 
109.35 	purposes of influencing the independent judgment of the person in connection with a 
110.1 	residential mortgage loan, or make a payment threat or promise, directly or indirectly, to 
110.2 	an appraiser of a property, for the purposes of influencing the independent judgment of the 
110.3 	appraiser with respect to the value of the property;
110.4 	(12) collect, charge, attempt to collect or charge, or use or propose an agreement 
110.5 	purporting to collect or charge a fee prohibited by this chapter;
110.6 	(13) cause or require a borrower to obtain property insurance coverage in an amount 
110.7 	that exceeds the replacement cost of the improvements as established by the property 
110.8 	insurer; or
110.9 	(14) fail to truthfully account for money belonging to a party to a residential 
110.10 	mortgage loan transaction.
110.11 		Subd. 2.Loan processor or underwriter activities. An individual engaging solely 
110.12 	in loan processor or underwriter activities shall not represent to the public, through 
110.13 	advertising or other means of communicating or providing information, including the use 
110.14 	of business cards, stationery, brochures, signs, rate lists, or other promotional items, that 
110.15 	the individual can or will perform any of the activities of a mortgage loan originator.

110.16 	EFFECTIVE DATE. This section is effective July 31, 2010.

110.17 	Sec. 24. [58A.17] MORTGAGE CALL REPORTS.
110.18 	A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and 
110.19 	Registry reports of condition, which must be in the form and contain the information the 
110.20 	Nationwide Mortgage Licensing System and Registry requires.

110.21 	EFFECTIVE DATE. This section is effective July 31, 2010.

110.22 	Sec. 25. [58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING 
110.23 	SYSTEM AND REGISTRY.
110.24 	The commissioner shall regularly report violations of this chapter, as well as 
110.25 	enforcement actions and other relevant information, to the Nationwide Mortgage 
110.26 	Licensing System and Registry subject to the provisions contained in section 58A.14.

110.27 	EFFECTIVE DATE. This section is effective July 31, 2010.

110.28 	Sec. 26. [58A.20] UNIQUE IDENTIFIER SHOWN.
110.29 	The unique identifier of any person originating a residential mortgage loan shall 
110.30 	be clearly shown on all residential mortgage loan application forms, solicitations, or 
110.31 	advertisements, including business cards or Web sites, and any other documents as 
110.32 	established by rule or order of the commissioner.

111.1 	EFFECTIVE DATE. This section is effective July 31, 2010.

111.2 	Sec. 27. Minnesota Statutes 2008, section 60K.36, subdivision 2, is amended to read:
111.3 		Subd. 2.Examination not required. A resident individual applying for a limited 
111.4 	lines credit insurance, title insurance, travel baggage insurance, mobile telephone 
111.5 	insurance, or bail bonds license is not required to take a written examination.

111.6 	Sec. 28. Minnesota Statutes 2008, section 60K.38, subdivision 1, is amended to read:
111.7 		Subdivision 1.Issuance. (a) Unless denied a license under section 60K.43, a person 
111.8 	who has met the requirements of sections 60K.36 and 60K.37 must be issued an insurance 
111.9 	producer license. An insurance producer may receive qualification for a license in one or 
111.10 	more of the lines of authority in paragraphs (b) and (c).
111.11 	(b) An individual insurance producer may receive qualification for a license in 
111.12 	one or more of the following major lines:
111.13 	(1) life insurance: coverage on human lives including benefits of endowment and 
111.14 	annuities, and may include benefits in the event of death or dismemberment by accident 
111.15 	and benefits for disability income;
111.16 	(2) accident and health or sickness insurance: coverage for sickness, bodily injury, 
111.17 	or accidental death, and may include benefits for disability income;
111.18 	(3) property insurance: coverage for the direct or consequential loss or damage to 
111.19 	property of every kind;
111.20 	(4) casualty insurance: coverage against legal liability, including that for death, 
111.21 	injury, or disability, or damage to real or personal property;
111.22 	(5) variable life and variable annuity products insurance: coverage provided under 
111.23 	variable life insurance contracts and variable annuities; and
111.24 	(6) personal lines: property and casualty insurance coverage sold to individuals and 
111.25 	families for primarily noncommercial purposes.
111.26 	(c) An individual insurance producer may receive qualification for a license in 
111.27 	one or more of the following limited lines:
111.28 	(1) limited line credit insurance;
111.29 	(2) farm property and liability insurance;
111.30 	(3) title insurance;
111.31 	(4) travel baggage insurance; and
111.32 	(5) mobile telephone insurance; and
111.33 	(6) (5) bail bonds.

112.1 	Sec. 29. [60K.381] SALE OF PORTABLE ELECTRONICS INSURANCE.
112.2 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
112.3 	the following meanings:
112.4 	(a) "Customer" means a person who purchases portable electronics or services.
112.5 	(b) "Covered customer" means a customer who elects coverage under a portable 
112.6 	electronics insurance policy issued to a vendor of portable electronics.
112.7 	(c) "Portable electronics" means electronic devices that are portable in nature, their 
112.8 	accessories, and services related to the use of the device.
112.9 	(d)(1) "Portable electronics insurance" means insurance providing coverage for 
112.10 	the repair or replacement of portable electronics, which may cover portable electronics 
112.11 	against any one or more of the following causes of loss: loss, theft, mechanical failure, 
112.12 	malfunction, damage, or other applicable perils.
112.13 	(2) "Portable electronics insurance" does not include:
112.14 	(i) a service contract governed by chapter 59B;
112.15 	(ii) a policy of insurance covering a seller's or a manufacturer's obligations under 
112.16 	a warranty; or
112.17 	(iii) a homeowner's, renter's, private passenger automobile, commercial multiperil, 
112.18 	or similar policy that covers loss or theft of portable electronics.
112.19 	(e) "Portable electronics transaction" means:
112.20 	(1) the sale or lease of portable electronics by a vendor to a customer; or
112.21 	(2) the sale of a service related to the use of portable electronics by a vendor to a 
112.22 	customer.
112.23 	(f) "Supervising agency" means a business entity that is a licensed insurance 
112.24 	producer.
112.25 	(g) "Vendor" means a business entity in the business of engaging in portable 
112.26 	electronics transactions, directly or indirectly.
112.27 		Subd. 2.Licensure of vendors. (a) A vendor is required to hold a limited lines 
112.28 	license issued under this section to sell or offer coverage under a policy of portable 
112.29 	electronics insurance in connection with, and incidental to, a portable electronics 
112.30 	transaction with a customer.
112.31 	(b) A limited lines license issued under this section shall authorize any employee or 
112.32 	authorized representative of the vendor to sell or offer coverage under a policy of portable 
112.33 	electronics insurance to a customer in connection with, and incidental to, a portable 
112.34 	electronics transaction at each location at which the vendor engages in portable electronics 
112.35 	transactions. The application for such a limited lines license shall set forth each location at 
112.36 	which the vendor offers coverage under a policy of portable electronics insurance. The 
113.1 	vendor shall notify the commissioner within 30 days of adding or eliminating such a 
113.2 	location.
113.3 	(c) Notwithstanding any other provision of law, a license issued pursuant to this 
113.4 	section shall authorize the licensee and its employees or authorized representatives to 
113.5 	engage only in those activities that are expressly permitted in this section.
113.6 		Subd. 3.Requirements for sale of portable electronics insurance. (a) At every 
113.7 	location where portable electronics insurance is offered to customers, brochures, or other 
113.8 	written materials must be made available to a prospective customer which:
113.9 	(1) disclose that portable electronics insurance may provide a duplication of 
113.10 	coverage already provided by a customer's homeowner's insurance policy, renter's 
113.11 	insurance policy, or other source of coverage;
113.12 	(2) state that the enrollment by the customer in a portable electronics insurance 
113.13 	program is not required in order to purchase or lease portable electronics or services;
113.14 	(3) summarize the material terms of the insurance coverage, including:
113.15 	(i) the identity of the insurer;
113.16 	(ii) the identity of the supervising agency;
113.17 	(iii) the amount of any applicable deductible and how it is to be paid;
113.18 	(iv) benefits of the coverage;
113.19 	(v) the terms for terminating or modifying coverage as set forth in the policy of 
113.20 	portable electronics insurance; and
113.21 	(vi) any material exclusions, conditions, or other limitations of coverage including 
113.22 	whether portable electronics may be repaired or replaced with similar make and model 
113.23 	reconditioned or nonoriginal manufacturer parts or equipment;
113.24 	(4) describe the process for filing a claim, including a description of any 
113.25 	requirements:
113.26 	(i) to return portable electronics and the maximum fee applicable in the event the 
113.27 	customer fails to comply with any equipment return requirements; and
113.28 	(ii) any proof of loss requirements; and
113.29 	(5) state that the customer may cancel enrollment for coverage under a portable 
113.30 	electronics insurance policy at any time and any unearned premium will be refunded 
113.31 	on a pro rata basis.
113.32 	(b) Portable electronics insurance may be offered on a month to month or other 
113.33 	periodic basis as a group or master commercial inland marine policy issued to a vendor of 
113.34 	portable electronics under which individual customers may elect to enroll for coverage.
113.35 	(c) Notwithstanding any other provision of Minnesota law regarding the termination 
113.36 	or modification of coverage under a policy of insurance, the terms for the termination 
114.1 	or modification of coverage under a policy of portable electronics insurance issued in 
114.2 	compliance with this chapter shall be as set forth in the policy.
114.3 	(d) Eligibility and underwriting standards for customers electing to enroll in 
114.4 	coverage shall be established for each portable electronics insurance program.
114.5 		Subd. 4.Authority of vendors of portable electronics. (a) The employees and 
114.6 	authorized representatives of vendors may sell or offer portable electronics insurance to 
114.7 	customers and shall not be subject to licensure as an insurance producer under this chapter 
114.8 	provided that:
114.9 	(1) the vendor obtains a limited lines license to authorize its employees or authorized 
114.10 	representatives to sell or offer portable electronics insurance pursuant to this section;
114.11 	(2) the insurer issuing the portable electronics insurance appoints a supervising 
114.12 	agency to supervise the administration of the program including development of a training 
114.13 	program for employees and authorized representatives of the vendors. The training 
114.14 	required by this subdivision shall comply with the following:
114.15 	(i) the training shall be delivered to all employees and authorized representatives of 
114.16 	the vendors who sell or offer portable electronics insurance;
114.17 	(ii) the training may be provided in electronic form. However, if conducted in 
114.18 	an electronic form, the supervising agency shall implement a program of in-person 
114.19 	training conducted by licensed employees of the supervising agency to supplement the 
114.20 	electronic training; and
114.21 	(iii) each employee and authorized representative shall receive basic instruction 
114.22 	about the portable electronics insurance offered to customers and the disclosures required 
114.23 	under subdivision 3; and
114.24 	(3) no employee or authorized representative of a vendor of portable electronics 
114.25 	shall advertise, represent, or otherwise hold himself or herself out as a nonlimited lines 
114.26 	licensed insurance producer.
114.27 	(b) The charges for insurance coverage may be billed and collected by the vendor of 
114.28 	portable electronics. If billed and collected by the vendor, the charges shall be separately 
114.29 	itemized from the charges for the purchase or lease of portable electronics or services. 
114.30 	Vendors billing and collecting such charges shall not be required to maintain such funds 
114.31 	in a segregated account provided that the vendor is authorized by the insurer to hold 
114.32 	such funds in an alternative manner and remits such amounts to the supervising agency 
114.33 	within 60 days of receipt. All funds received by a vendor from a customer for the sale of 
114.34 	portable electronics insurance shall be considered funds held by the vendor in a fiduciary 
114.35 	capacity for the benefit of the insurer. Vendors may receive compensation for billing 
114.36 	and collection services.

115.1 	Sec. 30. Minnesota Statutes 2009 Supplement, section 60K.55, subdivision 2, is 
115.2 	amended to read:
115.3 		Subd. 2.Licensing fees. (a) In addition to fees provided for examinations and the 
115.4 	technology surcharge required under paragraph (d), each insurance producer licensed 
115.5 	under this chapter shall pay to the commissioner a fee of:
115.6 	(1) $50 for an initial life, accident and health, property, or casualty license issued to 
115.7 	an individual insurance producer, and a fee of $50 for each renewal;
115.8 	(2) $50 for an initial variable life and variable annuity license issued to an individual 
115.9 	insurance producer, and a fee of $50 for each renewal;
115.10 	(3) $50 for an initial personal lines license issued to an individual insurance 
115.11 	producer, and a fee of $50 for each renewal;
115.12 	(4) $50 for an initial limited lines license issued to an individual insurance producer, 
115.13 	and a fee of $50 for each renewal;
115.14 	(5) $200 for an initial license issued to a business entity, and a fee of $200 for each 
115.15 	renewal; and
115.16 	(6) $500 for an initial surplus lines license, and a fee of $500 for each renewal; and
115.17 	(7) $5,000 for an initial portable electronics insurance limited lines license under 
115.18 	section 60K.381, and a fee of $1,000 for each renewal.
115.19 	(b) Initial licenses issued to a business entity under this chapter and section 60K.381 
115.20 	are valid for a period not to exceed 24 months and expire on October 31 of the renewal 
115.21 	year assigned by the commissioner. Initial licenses issued to an individual insurance 
115.22 	producer under this chapter before August 1, 2010, are valid for a period not to exceed 24 
115.23 	months and expire on October 31 of the renewal year assigned by the commissioner. Each 
115.24 	individual license initially issued or renewed on or after August 1, 2010, expires on the last 
115.25 	day of the birth month of the producer in the year that will result in the term of the license 
115.26 	being at least 12 months, but no more than 24 months. Beginning with the first license 
115.27 	expiration on the last day of the birth month of an individual producer as set forth in this 
115.28 	paragraph, all such licenses must after this date expire biennially on the last day of the birth 
115.29 	month of the individual producer that is two years subsequent to the preceding expiration 
115.30 	date. Each renewal insurance producer license is valid for a period of 24 months. 
115.31 	(c) All fees are nonreturnable, except that an overpayment of any fee may be 
115.32 	refunded upon proper application.
115.33 	(d) In addition to the fees required under paragraph (a), individual insurance 
115.34 	producers shall pay, for each initial license and renewal, a technology surcharge of up to 
115.35 	$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted 
115.36 	under that section.

116.1 	Sec. 31. Minnesota Statutes 2009 Supplement, section 82B.05, subdivision 1, is 
116.2 	amended to read:
116.3 		Subdivision 1.Members. The Real Estate Appraiser Advisory Board consists 
116.4 	of 15 nine members appointed by the commissioner of commerce. Three of the Two 
116.5 	members must be public members must be public members, four, one member must be 
116.6 	consumers a consumer of appraisal services, and eight three must be real estate appraisers 
116.7 	of whom not less than two members must be trainee real property appraisers, licensed 
116.8 	real property appraisers, or certified residential real property appraisers, not less than two 
116.9 	members and three must be certified general real property appraisers, and not less than 
116.10 	one member of those members must be certified by the Appraisal Qualification Board 
116.11 	of the Appraisal Foundation to teach the Uniform Standards of Professional Appraisal 
116.12 	Practice. Three members must live or work outside of the seven-county metropolitan area.
116.13 	The board is governed by section 15.0575.

116.14 	EFFECTIVE DATE. This section is effective August 1, 2010.

116.15 	Sec. 32. Minnesota Statutes 2008, section 82B.05, subdivision 5, is amended to read:
116.16 		Subd. 5.Conduct of meetings. Places of regular board meetings must be decided 
116.17 	by the vote of members. Written notice must be given to each member of the time and 
116.18 	place of each meeting of the board at least ten days before the scheduled date of regular 
116.19 	board meetings. The board shall establish procedures for emergency board meetings and 
116.20 	other operational procedures, subject to the approval of the commissioner.
116.21 	The members of the board shall elect a chair from among the members to preside 
116.22 	at board meetings.
116.23 	A quorum of the board is eight five members.
116.24 	The board shall meet at least once every six months as determined by a majority vote 
116.25 	of the members or a call of the commissioner. The chair of the board may call a meeting at 
116.26 	any other time, subject to the notice requirements of this section.

116.27 	EFFECTIVE DATE. This section is effective August 1, 2010.

116.28 	Sec. 33. Minnesota Statutes 2008, section 82B.05, is amended by adding a subdivision 
116.29 	to read:
116.30 		Subd. 7.Enforcement reports. The commissioner shall, on a regular basis, provide 
116.31 	the board with the commissioner's enforcement reports.

116.32 	EFFECTIVE DATE. This section is effective August 1, 2010.

117.1 	Sec. 34. Minnesota Statutes 2008, section 82B.06, is amended to read:
117.2 	82B.06 POWERS OF THE BOARD.
117.3 	The board shall make recommendations to the commissioner as the commissioner 
117.4 	requests or at the board's own initiative on:
117.5 	(1) rules with respect to each category of licensed real estate appraiser, the type of 
117.6 	educational experience, appraisal experience, and equivalent experience that will meet 
117.7 	the requirements of this chapter;
117.8 	(2) examination specifications for each category of licensed real estate appraiser, 
117.9 	to assist in providing or obtaining appropriate examination questions and answers, and 
117.10 	procedures for grading examinations;
117.11 	(3) rules with respect to each category of licensed real estate appraiser, the 
117.12 	continuing education requirements for the renewal of licensing that will meet the 
117.13 	requirements provided in this chapter;
117.14 	(4) periodic review of the standards for the development and communication of 
117.15 	real estate appraisals provided in this chapter and rules explaining and interpreting the 
117.16 	standards; and
117.17 	(5) development of standards and procedures for processing the determination of 
117.18 	appraiser violations of this chapter and USPAP; and
117.19 	(6) other matters necessary in carrying out the provisions of this chapter.

117.20 	EFFECTIVE DATE. This section is effective August 1, 2010.

117.21 	Sec. 35. [82C.01] TITLE.
117.22 	This chapter shall be known as the Minnesota Appraisal Management Company 
117.23 	Licensing and Regulation Act.

117.24 	Sec. 36. [82C.02] DEFINITIONS.
117.25 		Subdivision 1.Terms. As used in this chapter, the terms in this section have the 
117.26 	meanings given them.
117.27 		Subd. 2.Appraisal. In conformance with the Uniform Standards of Professional 
117.28 	Appraisal Practice (USPAP), "appraisal" is defined as: (noun) the act or process of 
117.29 	developing an opinion of value; an opinion of value; (adjective) of or pertaining to 
117.30 	appraising and related functions such as appraisal practice or appraisal services. For 
117.31 	purposes of this chapter, all appraisals or assignments that are referred to involve one to 
117.32 	four unit single-family properties.
118.1 		Subd. 3.Appraisal assignment. "Appraisal assignment" means an engagement for 
118.2 	which an appraiser is employed or retained to act, as a disinterested third party in giving 
118.3 	an unbiased analysis, opinion, or conclusion relating to the nature, quality, value, or utility 
118.4 	of named interests in, or aspects of, identified real estate.
118.5 		Subd. 4.Appraisal management company. "Appraisal management company" 
118.6 	means a corporation, partnership, sole proprietorship, subsidiary, unit, or other business 
118.7 	entity that directly or indirectly performs the following appraisal management services:
118.8 	(1) administers networks of independent contractors and/or employee appraisers to 
118.9 	perform residential real estate appraisal assignments for clients;
118.10 	(2) receives requests for residential real estate appraisal services from clients and, for 
118.11 	a fee paid by the client, enters into an agreement with one or more independent appraisers 
118.12 	to perform the real estate appraisal services contained in the request; or
118.13 	(3) serves as a third-party broker of appraisal management services between clients 
118.14 	and appraisers.
118.15 		Subd. 5.Appraisal management services. "Appraisal management services" 
118.16 	means the process of directly or indirectly performing any of the following functions on 
118.17 	behalf of a lender, financial institution, client, or any other person to:
118.18 	(1) administer an appraiser panel;
118.19 	(2) recruit, qualify, verify licensing or certification, and negotiate fees and service 
118.20 	level expectations with persons who are part of an appraiser panel;
118.21 	(3) receive an order for an appraisal from one person, and deliver the order for the 
118.22 	appraisal to an appraiser that is part of an appraiser panel for completion;
118.23 	(4) track and determine the status of orders for appraisals;
118.24 	(5) conduct quality control of a completed appraisal prior to the delivery of the 
118.25 	appraisal to the person that ordered the appraisal; or
118.26 	(6) provide a completed appraisal performed by an appraiser to one or more clients.
118.27 		Subd. 6.Appraiser. "Appraiser" means a person who is expected to perform 
118.28 	valuation services competently and in a manner that is independent, impartial, and 
118.29 	objective, and who is licensed under chapter 82B.
118.30 		Subd. 7.Appraiser panel. "Appraiser panel" means a network of licensed or 
118.31 	certified appraisers who are independent contractors to the appraisal management 
118.32 	company that have:
118.33 	(1) responded to an invitation, request, or solicitation from an appraisal management 
118.34 	company, in any form, to perform appraisals for persons that have ordered appraisals 
118.35 	through the appraisal management company, or to perform appraisals for the appraisal 
119.1 	management company directly, on a periodic basis, as requested and assigned by the 
119.2 	appraisal management company; and
119.3 	(2) been selected and approved by an appraisal management company to perform 
119.4 	appraisals for any client of the appraisal management company that has ordered an 
119.5 	appraisal through the appraisal management company, or to perform appraisals for the 
119.6 	appraisal management company directly, on a periodic basis, as assigned by the appraisal 
119.7 	management company.
119.8 		Subd. 8.Appraisal review. "Appraisal review" means the act of developing 
119.9 	and communicating an opinion about the quality of another appraiser's work that was 
119.10 	performed as part of an appraisal assignment, except that an examination of an appraisal 
119.11 	for grammatical, typographical, or other similar errors that do not make a substantive 
119.12 	valuation change shall not be an appraisal review.
119.13 		Subd. 9.Client. "Client" means any person or entity that contracts with, or 
119.14 	otherwise enters into an agreement with, an appraisal management company for the 
119.15 	performance of real estate appraisal services or appraisal management services. For 
119.16 	purposes of this chapter, the appraisal management company is the party engaging the 
119.17 	independent appraiser and can be the appraiser's client. However, this does not preclude 
119.18 	an appraisal management company from acting as a duly authorized agent for a lender.
119.19 		Subd. 10.Commissioner. "Commissioner" means the commissioner of commerce.
119.20 		Subd. 11.Controlling person. "Controlling person" means:
119.21 	(1) any owner, officer, or director of an appraisal management company seeking to 
119.22 	offer appraisal management services in this state;
119.23 	(2) an individual employed, appointed, or authorized by an appraisal management 
119.24 	company that has the authority to enter into a contractual relationship with other persons 
119.25 	for the performance of appraisal management services and has the authority to enter into 
119.26 	agreements with appraisers for the performance of appraisals;
119.27 	(3) an individual who possesses, directly or indirectly, the power to direct or cause 
119.28 	the direction of the management or policies of an appraisal management company; or
119.29 	(4) an individual who enters into:
119.30 	(i) contractual relationships with clients for the performance of appraisal 
119.31 	management services; and
119.32 	(ii) agreements with employed and independent appraisers for the performance 
119.33 	of real estate appraisal services.
119.34 		Subd. 12.Employee. "Employee" means an individual who is treated as an 
119.35 	employee for purposes of compliance with federal income tax laws.
120.1 		Subd. 13.Person. "Person" means a natural person, firm, partnership, limited 
120.2 	liability partnership, corporation, association, limited liability company, or other form of 
120.3 	business organization and the officers, directors, employees, or agents of that person.
120.4 		Subd. 14.USPAP. "USPAP" means the Uniform Standards of Professional 
120.5 	Appraisal Practice as established by the Appraisal Foundation. State and federal regulatory 
120.6 	authorities enforce the content of the current or applicable edition of USPAP.

120.7 	Sec. 37. [82C.03] LICENSING.
120.8 		Subdivision 1.Requirement. It is unlawful for a person, corporation, partnership, 
120.9 	sole proprietorship, subsidiary, unit, or other business entity to directly or indirectly 
120.10 	engage or attempt to engage in business as an appraisal management company, to directly 
120.11 	or indirectly engage or attempt to perform appraisal management services, or to advertise 
120.12 	or hold itself out as engaging in or conducting business as an appraisal management 
120.13 	company without first obtaining a license issued by the commissioner under the provisions 
120.14 	of this chapter.
120.15 		Subd. 2.Owner requirements. (a) An appraisal management company applying to 
120.16 	the commissioner for a license in this state may not be more than ten percent owned by 
120.17 	any person that is currently subject to any cease and desist order or injunctive order that 
120.18 	would preclude involvement with an appraisal management company, or that has ever:
120.19 	(1) voluntarily surrendered in lieu of disciplinary action an appraiser certification, 
120.20 	registration, or license or an appraisal management company license;
120.21 	(2) been the subject of a final order revoking or denying an appraiser certification, 
120.22 	registration, or license or an appraisal management company license;  or
120.23 	(3) a final order barring involvement in any industry or profession issued by this or 
120.24 	another state or federal regulatory agency.
120.25 	(b) A person that owns more than ten percent of an appraisal management company 
120.26 	in this state shall:
120.27 	(1) be of good moral character, as determined by the commissioner;
120.28 	(2) submit to a background investigation, as determined by the commissioner; and
120.29 	(3) certify to the commissioner that the person has never been the subject of an order 
120.30 	of certificate, registration or license suspension, revocation, or denial; cease and desist 
120.31 	order; injunctive order; or order barring involvement in an industry or profession issued 
120.32 	by this or another state or federal regulatory agency.
120.33 		Subd. 3.Designated controlling person requirements. (a) Designation. Each 
120.34 	appraisal management company applying to the commissioner for a license in this state 
121.1 	shall designate a controlling person that will be the main contact for all communication 
121.2 	between the commissioner and the appraisal management company.
121.3 	(b) Requirements. In order to serve as a designated controlling person of an 
121.4 	appraisal management company, a person must:
121.5 	(1) certify to the commissioner that the person is not currently subject to any cease 
121.6 	and desist order or injunctive order that would preclude involvement with an appraisal 
121.7 	management company, and has never been the subject of an order suspending, revoking, 
121.8 	or denying a certification, registration, or license for real estate services, or a final order 
121.9 	barring involvement in any industry or profession issued by this or another state or federal 
121.10 	regulatory agency;
121.11 	(2) be of good moral character, as determined by the commissioner; and
121.12 	(3) submit to a background investigation, as determined by the commissioner.
121.13 		Subd. 4.Application for license. Application for an appraisal management 
121.14 	company license must be submitted on a form prescribed by the commissioner.
121.15 		Subd. 5.Minimum information. The application must, at a minimum, include 
121.16 	the following information:
121.17 	(1) the name of the entity seeking registration;
121.18 	(2) the business address or addresses of the entity seeking registration;
121.19 	(3) telephone contact and e-mail information of the entity seeking registration;
121.20 	(4) if the entity is not a corporation that is domiciled in this state, the name and 
121.21 	contact information for the company's agent for service of process in this state;
121.22 	(5) the name, address, and contact information for an individual or corporation, 
121.23 	partnership, limited liability company, association, or other business entity that owns ten 
121.24 	percent or more of the appraisal management company;
121.25 	(6) the name, address, and contact information for a controlling person or persons;
121.26 	(7) a certification that the entity has a system and process in place to verify that a 
121.27 	person being added to the employment or appraiser panel of the appraisal management 
121.28 	company for appraisal services within this state holds an active appraisal license in this 
121.29 	state pursuant to chapter 82B if a license is required to perform appraisals;
121.30 	(8) a certification that the entity has a system in place to review the work of all 
121.31 	employed and independent appraisers that are performing real estate appraisal services 
121.32 	for the appraisal management company on a periodic basis to verify that the real estate 
121.33 	appraisal assignments are being conducted in accordance with USPAP and chapter 82B;
121.34 	(9) a certification that the entity maintains a detailed record of each service request 
121.35 	that it receives and the independent appraiser that performs the  real estate appraisal 
121.36 	services for the appraisal management company, pursuant to section 82C.13;
122.1 	(10) a certification that the employees of the appraisal management company will be 
122.2 	appropriately trained and familiar with the appraisal process;
122.3 	(11) a certification that the appraisal management company has a system and 
122.4 	process in place to verify that a person being added to the appraiser panel of the appraisal 
122.5 	management company holds a license in good standing in this state pursuant to chapter 
122.6 	82B; and
122.7 	(12) an irrevocable Uniform Consent to Service of Process, pursuant to section 
122.8 	82C.07.
122.9 		Subd. 6.Effective date of license. Initial licenses issued under this chapter are 
122.10 	effective upon issuance and remain valid, subject to denial, suspension, or revocation 
122.11 	under this chapter, until the following August 31.

122.12 	Sec. 38. [82C.04] TERM OF LICENSE.
122.13 	Initial licenses issued under this chapter are valid for a period not to exceed two 
122.14 	years. Each initial license must expire on August 31 of the expiration year assigned by 
122.15 	the commissioner.

122.16 	Sec. 39. [82C.045] FEE DISCLOSURE.
122.17 	(a) An appraisal management company shall separately state to the client the 
122.18 	fees paid to an appraiser for appraisal services and the fees charged by the appraisal 
122.19 	management company for services associated with the management of the appraisal 
122.20 	process, including procurement of the appraiser's services.
122.21 	(b) Appraisers shall not be prohibited by the appraisal management company, client, 
122.22 	or other third party from disclosing the fee paid to the appraiser for the performance of the 
122.23 	appraisal in the appraisal report.

122.24 	Sec. 40. [82C.05] LICENSE RENEWAL.
122.25 		Subdivision 1.Term. Licenses renewed under this chapter are valid for a period 
122.26 	of 24 months.
122.27 		Subd. 2.Timely renewal. (a) Application for timely renewal of a license is 
122.28 	considered timely filed if received by the commissioner before the date of the license 
122.29 	expiration.
122.30 	(b) An application for renewal is considered properly filed if made upon a form 
122.31 	prescribed by the commissioner, accompanied by fees prescribed by this chapter, and 
122.32 	containing any information the commissioner requires.
123.1 	(c) A licensee failing to make timely application for renewal of the license is 
123.2 	unlicensed until the renewal license has been issued by the commissioner and is received 
123.3 	by the licensee.
123.4 		Subd. 3.Contents of renewal application. Application for the renewal of an 
123.5 	existing license must contain the information specified in section 82C.03. However, only 
123.6 	the requested information having changed from the most recent prior application need 
123.7 	be submitted.
123.8 		Subd. 4.Cancellation. A licensee ceasing an activity or activities regulated by this 
123.9 	chapter and desiring to no longer be licensed shall so inform the commissioner in writing 
123.10 	and, at the same time, surrender the license and all other symbols or indicia of licensure.

123.11 	Sec. 41. [82C.06] EXEMPTIONS.
123.12 	This chapter does not apply to:
123.13 	(1) a person that exclusively employs appraisers on an employer and employee 
123.14 	basis for the performance of appraisals, and:
123.15 	(i) the employer is responsible for ensuring that the appraisals are performed by 
123.16 	employees in accordance with USPAP; and
123.17 	(ii) the employer accepts all liability associated with the performance of the 
123.18 	appraisal by the employee;
123.19 	(2) a department or unit within a financial institution that is subject to direct 
123.20 	regulation by an agency of the United States government, or to regulation by an agency of 
123.21 	this state, that receives a request for the performance of an appraisal from one employee of 
123.22 	the financial institution, and another employee of the same financial institution assigns the 
123.23 	request for the appraisal to an appraiser that is an independent contractor to the institution, 
123.24 	except that an appraisal management company that is a wholly owned subsidiary of 
123.25 	a financial institution shall not be considered a department or unit within a financial 
123.26 	institution to which the provisions of this chapter do not apply;
123.27 	(3) a person that enters into an agreement, whether written or otherwise, with an 
123.28 	appraiser for the performance of an appraisal, and upon the completion of the appraisal, 
123.29 	the report of the appraiser performing the appraisal is signed by both the appraiser who 
123.30 	completed the appraisal and the appraiser who requested the completion of the appraisal, 
123.31 	except that an appraisal management company may not avoid the requirements of this 
123.32 	chapter by requiring that an employee of the appraisal management company that is an 
123.33 	appraiser to sign an appraisal that is completed by an appraiser that is part of the appraisal 
123.34 	panel of the appraisal management company; or
124.1 	(4) any governmental agency performing appraisals on behalf of that level of 
124.2 	government or any agency performing ad valorem tax appraisals for county assessors.

124.3 	Sec. 42. [82C.07] CONSENT TO SERVICE OF PROCESS.
124.4 	Each entity applying for a license as an appraisal management company in this state 
124.5 	shall complete an irrevocable Uniform Consent to Service of Process as prescribed by 
124.6 	the commissioner.

124.7 	Sec. 43. [82C.08] LICENSING FEES.
124.8 		Subdivision 1.Establishment and retention. The fees shall be retained by the 
124.9 	commissioner for the sole purpose of administering this licensing and regulation program.
124.10 		Subd. 2.Amounts. (a) Each application for initial licensure shall be accompanied 
124.11 	by a fee of $1,500.
124.12 	(b) Each application for renewal of the license must be received prior to the two-year 
124.13 	expiration period with the renewal fee of $1,000.
124.14 		Subd. 3.Forfeiture. All fees are nonrefundable except that an overpayment of a fee 
124.15 	must be refunded upon proper application.

124.16 	Sec. 44. [82C.09] INVESTIGATIONS AND SUBPOENAS.
124.17 	The commissioner has under this chapter the same powers with respect to section 
124.18 	45.027, including the authority to impose a civil penalty not to exceed $10,000 per 
124.19 	violation.

124.20 	Sec. 45. [82C.10] EMPLOYEE REQUIREMENTS.
124.21 	An employee of the appraisal management company that has the responsibility to 
124.22 	review the work of employed and independent appraisers where the subject properties are 
124.23 	located within this state, which include the reviewer's opinion of value or concurrence 
124.24 	with the original appraiser's value, must be licensed according to chapter 82B and perform 
124.25 	the review assignments in compliance with USPAP and chapter 82B. This requirement 
124.26 	does not apply to employees who review appraisals for completeness and compliance in 
124.27 	connection with an appraisal management company's internal quality control processes, 
124.28 	but who do not perform appraisal reviews that are subject to Standard 3 of USPAP.

124.29 	Sec. 46. [82C.11] LIMITATIONS.
124.30 	An appraisal management company licensed in this state pursuant to this chapter 
124.31 	may enter into contracts or agreements for appraisal assignments in this state only with 
125.1 	an employee or independent appraiser holding an active Minnesota real estate appraiser 
125.2 	license pursuant to chapter 82B.

125.3 	Sec. 47. [82C.12] ADHERENCE TO STANDARDS.
125.4 	An appraisal management company must have a system in place to review the 
125.5 	work of all employed and independent appraisers that are performing real estate appraisal 
125.6 	assignments for the appraisal management company on a periodic basis to verify that 
125.7 	the real estate appraisal services are being conducted in accordance with USPAP and 
125.8 	chapter 82B. An appraisal management company is required to make referrals directly to 
125.9 	state appraiser regulatory authorities when a state licensed or certified appraiser violates 
125.10 	USPAP, applicable state law, or engages in other unethical or unprofessional conduct.

125.11 	Sec. 48. [82C.13] RECORD KEEPING.
125.12 	An appraisal management company must maintain a detailed record of each service 
125.13 	request that it receives and the employee appraiser or independent appraiser that performs 
125.14 	the appraisal assignment for the appraisal management company.
125.15 	Records must be kept for a period of at least five years after the appraisal assignment 
125.16 	request is sent to the independent appraiser or completion of the appraisal report, 
125.17 	whichever period expires later.

125.18 	Sec. 49. [82C.14] APPRAISER INDEPENDENCE; PROHIBITIONS.
125.19 	(a) It is unlawful for any employee, director, officer, or agent of an appraisal 
125.20 	management company licensed in this state pursuant to this chapter to influence or attempt 
125.21 	to influence the development, reporting, or review of an appraisal through coercion, 
125.22 	extortion, collusion, compensation, inducement, intimidation, or bribery, including but 
125.23 	not limited to:
125.24 	(1) withholding or threatening to withhold timely payment for an appraisal;
125.25 	(2) withholding or threatening to withhold future business or assignments for an 
125.26 	employed or independent appraiser, or demoting or terminating or threatening to demote 
125.27 	or terminate an employed or independent appraiser;
125.28 	(3) expressly or impliedly promising future business, assignments, promotions, or 
125.29 	increased compensation for an employed or independent appraiser;
125.30 	(4) conditioning the request for an appraisal assignment on the payment of an 
125.31 	appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached, 
125.32 	or on a preliminary estimate or opinion requested from an employed or independent 
125.33 	appraiser;
126.1 	(5) requesting that an employed or independent appraiser provide an estimated, 
126.2 	predetermined, or desired valuation in an appraisal report, or provide estimated values or 
126.3 	comparable sales at any time prior to the completion of an appraisal assignment;
126.4 	(6) providing to an employed or independent appraiser an anticipated, estimated, 
126.5 	encouraged, or desired value for a subject property or a proposed or target amount to be 
126.6 	loaned to the borrower, except that a copy of the sales contract for purchase transactions 
126.7 	may be provided;
126.8 	(7) providing to an employed or independent appraiser, or any entity or person 
126.9 	related to the appraiser, stock, or other financial or nonfinancial benefits;
126.10 	(8) allowing the removal of an employed or independent appraiser from a list of 
126.11 	qualified appraisers used by any entity, without prior written notice to the appraiser, which 
126.12 	notice must include documented evidence of the appraiser's violation of USPAP or chapter 
126.13 	82B, substandard performance, or otherwise improper or unprofessional behavior;
126.14 	(9) request or require any employed or independent appraiser to provide the 
126.15 	appraisal management company or any of its employees, or any of its clients, with the 
126.16 	appraiser's digital signature;
126.17 	(10) alter, amend, or change an appraisal report submitted by an appraiser, to include 
126.18 	removing or applying a signature, adding or deleting information from the appraisal report;
126.19 	(11) require the appraiser to collect the fee from a borrower, homeowner, or other 
126.20 	person;
126.21 	(12) require an appraiser to sign any indemnification agreement that would require 
126.22 	the appraiser to defend and hold harmless the appraisal management company or any of its 
126.23 	agents or employees for any liability, damage, losses, or claims arising out of the services 
126.24 	performed by the appraisal management company or its agents, employees, or independent 
126.25 	contractors and not the services performed by the appraiser;
126.26 	(13) use an appraiser directly selected or referred by any member of a loan 
126.27 	production staff for an individual assignment; or
126.28 	(14) any other act or practice that impairs or attempts to impair an appraiser's 
126.29 	independence, objectivity, or impartiality.
126.30 	(b) Nothing in paragraph (a) prohibits the appraisal management company from 
126.31 	requesting that an independent appraiser:
126.32 	(1) consider additional appropriate property information;
126.33 	(2) provide further detail, substantiation, or explanation for the appraiser's value 
126.34 	conclusion; or
126.35 	(3) correct objective factual errors in an appraisal report.

127.1 	Sec. 50. [82C.15] ADJUDICATION OF DISPUTES BETWEEN AN APPRAISAL 
127.2 	MANAGEMENT COMPANY AND AN INDEPENDENT APPRAISER.
127.3 	Except within the first 30 days after an independent appraiser is first added to the 
127.4 	appraiser panel of an appraisal management company, an appraisal management company 
127.5 	may not remove an appraiser from its appraiser panel, or otherwise refuse to assign 
127.6 	requests for real estate appraisal services to an independent appraiser without:
127.7 	(1) notifying the appraiser in writing of the reasons why the appraiser is being 
127.8 	removed from the appraiser panel or is not receiving appraisal requests from the appraisal 
127.9 	management company;
127.10 	(2) if the appraiser is being removed from the panel for illegal conduct, having 
127.11 	determined that the appraiser has violated USPAP or chapter 82B, taking into account the 
127.12 	nature of the alleged conduct or violation; and
127.13 	(3) providing an opportunity for the appraiser to respond and appeal the notification 
127.14 	of the appraisal management company.

127.15 	Sec. 51. [82C.16] DENIAL, SUSPENSION, REVOCATION OF LICENSES.
127.16 		Subdivision 1.Powers of commissioner. The commissioner may by order take any 
127.17 	or all of the following actions:
127.18 	(1) bar a person from serving as an officer, director, partner, controlling person, 
127.19 	or any similar role at an appraisal management company, if such person has ever been 
127.20 	the subject of a final order suspending, revoking, or denying a certification, registration 
127.21 	or license as a realtor, broker, or appraiser, or a final order barring involvement in any 
127.22 	industry or profession issued by this or another state or federal regulatory agency;
127.23 	(2) deny, suspend, or revoke an appraisal management company license;
127.24 	(3) censure an appraisal management company license; and
127.25 	(4) impose a civil penalty as provided for in section 45.027.
127.26 	(b) In order to take the action in paragraph (a), the commissioner must find:
127.27 	(1) that the order is in the public interest; and
127.28 	(2) that an officer, director, partner, employee, agent, controlling person or persons, 
127.29 	or any person occupying a similar status or performing similar functions, has:
127.30 	(i) violated any provision of this chapter;
127.31 	(ii) filed an application for a license that is incomplete in any material respect or 
127.32 	contains a statement that, in light of the circumstances under which it is made, is false or 
127.33 	misleading with respect to a material fact;
127.34 	(iii) failed to maintain compliance with the affirmations made under section 80C.03, 
127.35 	subdivision 5;
128.1 	(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, 
128.2 	or dishonest act or practice, whether or not the act or practice involves the appraisal 
128.3 	management company;
128.4 	(v) engaged in an act or practice, whether or not the act or practice involves the 
128.5 	business of appraisal management, appraisal assignments, or real estate mortgage related 
128.6 	practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;
128.7 	(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere, 
128.8 	or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral 
128.9 	turpitude;
128.10 	(vii) paid a civil penalty or been the subject of disciplinary action by the 
128.11 	commissioner, or an order of suspension or revocation, cease and desist order, or 
128.12 	injunction order, or an order barring involvement in an industry or profession issued by 
128.13 	this or any other state or federal regulatory agency or government-sponsored enterprise, 
128.14 	or by the secretary of Housing and Urban Development;
128.15 	(viii) been found by a court of competent jurisdiction to have engaged in conduct 
128.16 	evidencing gross negligence, fraud, misrepresentation, or deceit;
128.17 	(ix) refused to cooperate with an investigation or examination by the commissioner;
128.18 	(x) failed to pay any fee or assessment imposed by the commissioner; or
128.19 	(xi) failed to comply with state and federal tax obligations.
128.20 		Subd. 2.Orders of the commissioner. To begin a proceeding under this section, 
128.21 	the commissioner shall issue an order requiring the subject of the proceeding to show 
128.22 	cause why action should not be taken against the licensee according to this section. The 
128.23 	order must be calculated to give reasonable notice of the time and place for the hearing 
128.24 	and must state the reasons for entry of the order. The commissioner may by order 
128.25 	summarily suspend a license pending a final determination of an order to show cause. If a 
128.26 	license is summarily suspended, pending final determination of an order to show cause, a 
128.27 	hearing on the merits must be held within 30 days of the issuance of the order of summary 
128.28 	suspension. All hearings must be conducted under chapter 14. After the hearing, the 
128.29 	commissioner shall enter an order disposing of the matter as the facts require. If the 
128.30 	subject of the order fails to appear at a hearing after having been duly notified of it, the 
128.31 	subject is considered in default, and the proceeding may be determined against the subject 
128.32 	of the order upon consideration of the order to show cause, the allegations of which may 
128.33 	be considered to be true.
128.34 		Subd. 3.Actions against lapsed license. If a license lapses, is surrendered, 
128.35 	withdrawn, terminated, or otherwise becomes ineffective, the commissioner may institute 
128.36 	a proceeding under this subdivision within two years after the license was last effective 
129.1 	and enter a revocation or suspension order as of the last date  which the license was in 
129.2 	effect, and may impose a civil penalty as provided for in this section or section 45.027.

129.3 	Sec. 52. Minnesota Statutes 2008, section 115C.08, subdivision 1, is amended to read:
129.4 		Subdivision 1.Revenue sources. Revenue from the following sources must be 
129.5 	deposited in the state treasury and credited to a petroleum tank fund:
129.6 	(1) the proceeds of the fee imposed by subdivision 3;
129.7 	(2) money recovered by the state under sections 115C.04, 115C.05, and 116.491, 
129.8 	including administrative expenses, civil penalties, and money paid under an agreement, 
129.9 	stipulation, or settlement; 
129.10 	(3) interest attributable to investment of money in the fund;
129.11 	(4) money received by the board and agency in the form of gifts, grants other than 
129.12 	federal grants, reimbursements, or appropriations from any source intended to be used for 
129.13 	the purposes of the fund;
129.14 	(5) fees charged for the operation of the tank installer certification program 
129.15 	established under section 116.491; and
129.16 	(6) money obtained from the return of reimbursements, civil penalties, or other 
129.17 	board action under this chapter; and
129.18 	(7) the proceeds from the sales of all properties acquired by the agency under 
129.19 	subdivision 4.

129.20 	Sec. 53. Minnesota Statutes 2009 Supplement, section 115C.08, subdivision 4, is 
129.21 	amended to read:
129.22 		Subd. 4.Expenditures. (a) Money in the fund may only be spent:
129.23 	(1) to administer the petroleum tank release cleanup program established in this 
129.24 	chapter;
129.25 	(2) for agency administrative costs under sections 116.46 to 116.50, sections 
129.26 	115C.03 to 115C.06, and costs of corrective action taken by the agency under section 
129.27 	115C.03, including investigations;
129.28 	(3) for costs of recovering expenses of corrective actions under section 115C.04;
129.29 	(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
129.30 	(5) for agency administrative costs of enforcing rules governing the construction, 
129.31 	installation, operation, and closure of aboveground and underground petroleum storage 
129.32 	tanks;
129.33 	(6) for reimbursement of the environmental response, compensation, and compliance 
129.34 	account under subdivision 5 and section 115B.26, subdivision 4;
130.1 	(7) for administrative and staff costs as set by the board to administer the petroleum 
130.2 	tank release program established in this chapter;
130.3 	(8) for corrective action performance audits under section 115C.093;
130.4 	(9) for contamination cleanup grants, as provided in paragraph (c); and
130.5 	(10) to assess and remove abandoned underground storage tanks under section 
130.6 	115C.094 and, if a release is discovered, to pay for the specific consultant and contractor 
130.7 	services costs necessary to complete the tank removal project, including, but not limited 
130.8 	to, excavation soil sampling, groundwater sampling, soil disposal, and completion of 
130.9 	an excavation report; and
130.10 	(11) for property acquisition by the agency when the agency has determined that 
130.11 	purchasing a property where a release has occurred is the most appropriate corrective 
130.12 	action. The acquisition of all properties is subject to approval by the board.
130.13 	(b) Except as provided in paragraph (c), money in the fund is appropriated to the 
130.14 	board to make reimbursements or payments under this section.
130.15 	(c) $6,200,000 is annually appropriated from the fund to the commissioner of 
130.16 	employment and economic development for contamination cleanup grants under section 
130.17 	116J.554. Of this amount, the commissioner may spend up to $225,000 annually for 
130.18 	administration of the contamination cleanup grant program. The appropriation does not 
130.19 	cancel and is available until expended. The appropriation shall not be withdrawn from 
130.20 	the fund nor the fund balance reduced until the funds are requested by the commissioner 
130.21 	of employment and economic development. The commissioner shall schedule requests 
130.22 	for withdrawals from the fund to minimize the necessity to impose the fee authorized by 
130.23 	subdivision 2. Unless otherwise provided, the appropriation in this paragraph may be 
130.24 	used for:
130.25 	(1) project costs at a qualifying site if a portion of the cleanup costs are attributable 
130.26 	to petroleum contamination or new and used tar and tar-like substances, including but not 
130.27 	limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist 
130.28 	primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, 
130.29 	fractions, or residues from the processing of petroleum crude or petroleum products as 
130.30 	defined in section 296A.01; and
130.31 	(2) the costs of performing contamination investigation if there is a reasonable basis 
130.32 	to suspect the contamination is attributable to petroleum or new and used tar and tar-like 
130.33 	substances, including but not limited to bitumen and asphalt, but excluding bituminous or 
130.34 	asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits 
130.35 	in the earth or are distillates, fractions, or residues from the processing of petroleum crude 
130.36 	or petroleum products as defined in section 296A.01.

131.1 	Sec. 54. Minnesota Statutes 2008, section 238.08, subdivision 1, is amended to read:
131.2 		Subdivision 1.Requirement; conditions. (a) A municipality shall require a 
131.3 	franchise or extension permit of any cable communications system providing service 
131.4 	within the municipality.
131.5 	(b) No municipality shall grant an additional franchise for cable service for an 
131.6 	area included in an existing franchise on terms and conditions more favorable or less 
131.7 	burdensome than those in the existing franchise pertaining to: (1) the area served; (2) 
131.8 	public, educational, or governmental access requirements; or (3) franchise fees. The 
131.9 	provisions of this paragraph shall not apply when the area in which the additional franchise 
131.10 	is being sought is not actually being served by any existing cable communications system 
131.11 	holding a franchise for the area. Nothing in this paragraph prevents a municipality from 
131.12 	imposing additional terms and conditions on any additional franchises.
131.13 	(c)  An area for an additional cable franchise is not more favorable or less 
131.14 	burdensome if the franchisee is a telephone company, as defined in section 237.01, 
131.15 	subdivision 7, and the area of the franchise is no less than the area within the municipality 
131.16 	in which the telephone company offers local exchange telephone service. This paragraph 
131.17 	is in addition to and not a limit to the authority of a municipality to grant an additional 
131.18 	franchise for cable service.

131.19 	EFFECTIVE DATE. This section is effective August 1, 2010, and does not affect 
131.20 	any litigation pending on that date.

131.21 	Sec. 55. [325E.3891] CADMIUM IN CHILDREN'S JEWELRY.
131.22 		Subdivision 1.Definitions. (a) As used in this section, the term:
131.23 	(1) "accessible" has the meaning given in section 3.1.2 of the ASTM International 
131.24 	Safety Specification on Toy Safety, F-963;
131.25 	(2) "child" means an individual who is six years of age or younger; and
131.26 	(3) "children's jewelry" shall have the meaning set forth in section 325E.389, 
131.27 	subdivision 1, paragraph (c). 
131.28 		Subd. 2.Prohibitions. Cadmium in any surface coating or accessible substrate 
131.29 	material of metal or plastic components of children's jewelry shall not exceed 75 parts per 
131.30 	million, as determined through solubility testing for heavy metals defined in the ASTM 
131.31 	International Safety Specification on Toy Safety, ASTM standard F-963 and subsequent 
131.32 	versions of this standard, if the product is sold in this state unless this requirement is 
131.33 	superseded by a federal standard regulating cadmium in children's jewelry. This section 
131.34 	shall not regulate any product category for which an existing federal standard regulates 
132.1 	cadmium exposure in surface coatings and accessible substrate materials as required 
132.2 	under ASTM F-963.
132.3 		Subd. 3.Manufacturer or wholesaler. No manufacturer or wholesaler may sell 
132.4 	or offer for sale in this state children's jewelry that fails to meet the requirements of 
132.5 	subdivision 2.
132.6 		Subd. 4.Retailer. No retailer may sell or offer for sale in this state children's 
132.7 	jewelry that fails to meet the requirements of subdivision 2. This subdivision does not 
132.8 	apply to sales or free distribution of jewelry by a nonprofit organization described in 
132.9 	section 501(c)(3) of the Internal Revenue Code or to isolated and occasional sales of 
132.10 	jewelry not made in the normal course of business.
132.11 		Subd. 5.Enforcement. The attorney general shall enforce this section under section 
132.12 	8.31.

132.13 	EFFECTIVE DATE. This section is effective January 1, 2011, except that 
132.14 	subdivision 4 is effective March 1, 2011.

132.15 	Sec. 56. ASSESSMENT.
 132.16 	The commissioner may levy a pro rata assessment on institutions licensed under 
132.17 	Minnesota Statutes, chapter 58, to recover the costs to the Department of Commerce 
132.18 	for administering the licensing and registration requirements of Minnesota Statutes, 
132.19 	section 58A.10. The assessment amount must be determined by dividing those costs by 
132.20 	the number of licensees.
132.21 	The commissioner shall levy the assessments and notify each institution of the 
132.22 	amount of the assessment being levied by September 30, 2010. The institution shall pay 
132.23 	the assessment to the department no later than November 30, 2010. If an institution fails 
132.24 	to pay its assessment by this date, its license may be suspended by the commissioner 
132.25 	until it is paid in full.
132.26 	This section expires December 1, 2010.

132.27 	Sec. 57. RESIDENTIAL MORTGAGE ORIGINATORS AND SERVICERS; 
132.28 	TRANSITIONAL LICENSE FEE AND TERMS.
 132.29 	A residential mortgage originator licensee and a residential mortgage service 
132.30 	licensee operating under a valid license under Minnesota Statutes, chapter 58, with an 
132.31 	expiration date of July 31, 2011, shall pay a prorated renewal fee of $200 for a residential 
132.32 	mortgage originator, and $100 for a residential mortgage servicer. The prorated license 
132.33 	renewal fee must be paid by December 31, 2010, and such payment extends the license 
132.34 	term until December 31, 2011.

133.1 	EFFECTIVE DATE. This section is effective July 31, 2010.

133.2 	Sec. 58. APPROPRIATIONS.
 133.3 		Subdivision 1.Total appropriation. $523,000 is appropriated from the general fund 
133.4 	to the commissioner of commerce for the purposes indicated in the following subdivisions, 
133.5 	to be available for the fiscal year ending June 30, 2011.
133.6 		Subd. 2.Mortgage originators and servicers. $261,000 is to license residential 
133.7 	mortgage originators and servicers.
133.8 		Subd. 3.Appraisal management companies. $223,000 is to license appraisal 
133.9 	management companies.
133.10 		Subd. 4.Portable electronics insurance vendors. $39,000 is to license vendors 
133.11 	of portable electronics insurance.

133.12 	Sec. 59.  REPEALER.
 133.13 	Minnesota Statutes 2009 Supplement, section 58.126, is repealed.

133.14 	EFFECTIVE DATE. This section is effective July 31, 2010.

133.15 	ARTICLE 5
133.16 	IRON RANGE RESOURCES

133.17 	Section 1. Laws 2010, chapter 216, section 58, is amended to read:
133.18 	Sec. 58. 2010 DISTRIBUTIONS ONLY.
 133.19 	For distributions in 2010 only, a special fund is established to receive 28.757 cents 
133.20 	per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, 
133.21 	subdivision 6. The following amounts are allocated to St. Louis County acting as the fiscal 
133.22 	agent for the recipients for the specific purposes:
133.23 	(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide 
133.24 	incentives for at least two dentists to establish dental practices in high-need areas of the 
133.25 	taconite tax relief area;
133.26 	(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 
133.27 	heat at the Olcott Park Greenhouse/Virginia Commons project;
133.28 	(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety 
133.29 	repairs at the Miners Memorial;
133.30 	(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction 
133.31 	of Highway 142/Grant and Park Avenues;
134.1 	(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for 
134.2 	upgrades and capital improvements to the public arena in Coleraine;
134.3 	(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 
134.4 	pumphouse modifications;
134.5 	(7) 0.159 cent per ton must be paid to the city of Bovey for residential and 
134.6 	commercial claims for water damage due to water and flood-related damage caused by 
134.7 	the Canisteo Pit;
134.8 	(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and 
134.9 	child care center;
134.10 	(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer 
134.11 	upgrades;
134.12 	(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and 
134.13 	library project;
134.14 	(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of 
134.15 	water and sewer services for Lakewood Housing;
134.16 	(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at 
134.17 	the Children's Museum;
134.18 	(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 
134.19 	corrections. This amount must be matched by local sources;
134.20 	(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
134.21 	(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
134.22 	(16) 0.159 cent per ton must be paid to Aitkin County for a trail; 
134.23 	(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road 
134.24 	railroad crossing;
134.25 	(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and 
134.26 	striping of the community center parking lot;
134.27 	(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
134.28 	(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure 
134.29 	improvements, milling, and overlay for Summit Street between Alaska Avenue and 
134.30 	Highway 135;
134.31 	(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 
134.32 	replacements and improvements in the Northeast Lower Alley area;
134.33 	(22) 0.637 cent per ton must be paid to the town of White for replacement of the 
134.34 	Stepetz Road culvert;
134.35 	(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 
134.36 	Street and associated infrastructure;
135.1 	(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site 
135.2 	improvements at the Park Ridge development;
135.3 	(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure 
135.4 	and site preparation for its renewable and sustainable energy park;
135.5 	(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 
135.6 	improvements;
135.7 	(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road 
135.8 	rebuilding for the Summit Addition;
135.9 	(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 
135.10 	improvements;
135.11 	(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and 
135.12 	sewer infrastructure improvements;
135.13 	(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 
135.14 	improvements;
135.15 	(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 
135.16 	improvements;
135.17 	(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 
135.18 	improvements;
135.19 	(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 
135.20 	improvements;
135.21 	(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 
135.22 	improvements;
135.23 	(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 
135.24 	improvements;
135.25 	(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 
135.26 	improvements;
135.27 	(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 
135.28 	improvements;
135.29 	(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
135.30 	(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 
135.31 	infrastructure improvements; 
135.32 	(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 
135.33 	improvements at the athletic facility; 
135.34 	(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 
135.35 	improvements;
136.1 	(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for 
136.2 	infrastructure related to a housing development;
136.3 	(43) 0.159 cent per ton must be paid to Balkan Township for building improvements; 
136.4 	(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to 
136.5 	a nonprofit for a signage kiosk;
136.6 	(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer 
136.7 	lines and adjacent development near County State-Aid Highway 24; and
136.8 	(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic 
136.9 	wall infrastructure around the athletic complex.

136.10 	EFFECTIVE DATE. This section is effective for the 2010 distribution, all of 
136.11 	which must be made in the August 2010 payment retroactively from the day following 
136.12 	final enactment.

136.13 	EFFECTIVE DATE. This section is effective retroactively from April 2, 2010.

136.14 	Sec. 2. REVISOR'S INSTRUCTION.
 136.15 	The revisor of statutes shall code section 1 as Minnesota Statutes, section 298.2961, 
136.16 	subdivision 7.

136.17 	Sec. 3.  REPEALER.
 136.18 	Laws 2010, chapter 215, article 9, section 3, is repealed.