1.1 	A bill for an act
1.2 	relating to state government; appropriating money for jobs, economic 
1.3 	development, and housing; modifying certain programs; modifying fees 
1.4 	and licensing, registration, and continuing education provisions;amending 
1.5 	Minnesota Statutes 2010, sections 116J.035, by adding a subdivision; 116J.8737, 
1.6 	subdivisions 1, 2, 4; 116L.04, subdivision 1; 181.723, subdivision 5; 182.6553, 
1.7 	subdivision 6; 326B.04, subdivision 2; 326B.091; 326B.098; 326B.13, 
1.8 	subdivision 8; 326B.148, subdivision 1; 326B.42, subdivisions 8, 9, 10, by 
1.9 	adding subdivisions; 326B.435, subdivision 2; 326B.438; 326B.46, subdivisions 
1.10 	1a, 1b, 2, 3; 326B.47, subdivisions 1, 3; 326B.49, subdivision 1; 326B.56, 
1.11 	subdivision 1; 326B.58; 326B.82, subdivisions 2, 3, 7, 9; 326B.821, subdivisions 
1.12 	1, 5, 5a, 6, 7, 8, 9, 10, 11, 12, 15, 16, 18, 19, 20, 22, 23; 326B.865; 326B.89, 
1.13 	subdivisions 6, 8; 327.32, subdivisions 1a, 1b, 1e; 327.33, subdivisions 1, 2; 
1.14 	341.321; Laws 2009, chapter 78, article 1, section 18; proposing coding for new 
1.15 	law in Minnesota Statutes, chapter 326B; repealing Minnesota Statutes 2010, 
1.16 	sections 326B.82, subdivisions 4, 6; 326B.821, subdivision 3.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	APPROPRIATIONS

1.20	Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
 	
1.21 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.22 	in this article.

1.23			2012
		2013
		Total
	
1.24	General
	$
	78,435,000
	$
	78,135,000
	$
	156,570,000
	
1.25	Workforce Development
		6,147,000
		6,147,000
		12,294,000
	
1.26	Remediation
		700,000
		700,000
		1,400,000
	
1.27	Workers' Compensation 
		22,574,000
		22,574,000
		45,148,000
	
1.28	Total
	$
	107,856,000
	$
	107,556,000
	$
	215,412,000

								

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

2.9				APPROPRIATIONS
	
2.10				Available for the Year
	
2.11				Ending June 30
	
2.12					2012
		2013

2.13
2.14	Sec. 3. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.15	Subdivision 1.Total Appropriation
 	$
	 42,322,000
	$
	 42,322,000

2.16	Appropriations by Fund
	
2.17		2012
	2013
	
2.18	General
	 35,475,000
	35,475,000
	
2.19	Remediation
	700,000
	700,000
	
2.20
2.21	Workforce 
Development
	6,147,000
	6,147,000
	
2.22 	The amounts that may be spent for each 
2.23 	purpose are specified in the following 
2.24 	subdivisions.

2.25
2.26	Subd. 2.Business and Community 
Development
 		6,491,000
		 6,491,000

2.27	Appropriations by Fund
	
2.28	General
	 5,791,000
	5,791,000
	
2.29	Remediation
	700,000
	700,000
	
2.30 	(a) $3,762,000 the first year and $3,762,000 
2.31 	the second year is for business and 
2.32 	community development activities of the 
2.33 	department.
3.1 	(b) $700,000 the first year and $700,000 the 
3.2 	second year are from the remediation fund for 
3.3 	contaminated site cleanup and development 
3.4 	grants under Minnesota Statutes, section 
3.5 	116J.554. This appropriation is available 
3.6 	until expended.
3.7 	(c) $1,272,000 the first year and $1,272,000 
3.8 	the second year are from the general fund for 
3.9 	the contamination cleanup and development 
3.10 	grants under Minnesota Statutes, section 
3.11 	116J.554.
3.12 	(d) $757,000 each year is from the general 
3.13 	fund for a business development competitive 
3.14 	grant pilot program. The commissioner shall 
3.15 	develop and implement a competitive grant 
3.16 	program for business development programs. 
3.17 	Acceptable uses for the competitive 
3.18 	grants include, but are not limited to, 
3.19 	bioscience business development, minority 
3.20 	business development, women's business 
3.21 	development, rural business development, 
3.22 	and business development for inventors. 
3.23 	Of this amount, up to five percent is for 
3.24 	administering and monitoring this program. 
3.25 	The commissioner shall report by October 
3.26 	1, 2011, to the standing committees of the 
3.27 	senate and house of representatives having 
3.28 	jurisdiction over economic development 
3.29 	issues on program parameters and criteria 
3.30 	developed for the competitive grants under 
3.31 	this paragraph. The commissioner shall 
3.32 	also report whether there are existing grant 
3.33 	programs for the business development 
3.34 	sectors listed that are suited for certain 
3.35 	programs. 

4.1	Subd. 3.Workforce Development
 		 34,812,000
		 34,812,000

4.2	Appropriations by Fund
	
4.3	General
	28,665,000
	28,665,000
	
4.4
4.5	Workforce 
Development
	6,147,000
	6,147,000
	
4.6 	(a) $4,196,000 the first year and $4,196,000 
4.7 	the second year is from the general fund for 
4.8 	the Minnesota job skills partnership program 
4.9 	under Minnesota Statutes, sections 116L.01 
4.10 	to 116L.17. If the appropriation for either 
4.11 	year is insufficient, the appropriation for the 
4.12 	other year is available. This appropriation is 
4.13 	available until spent.
4.14 	(b) $670,000 each year is from the general 
4.15 	fund and is in addition to the estimated 
4.16 	$41,000,000 each year in the workforce 
4.17 	development fund for the Minnesota Job 
4.18 	Skills Partnership under Minnesota Statutes, 
4.19 	sections 116L.01 to 116L.17 and the 
4.20 	competitive grant program under Minnesota 
4.21 	Statutes, section 116L.04. The commissioner 
4.22 	shall report by January 15 each year to 
4.23 	the standing committees of the senate and 
4.24 	house of representatives having jurisdiction 
4.25 	over economic development issues on the 
4.26 	number of grants and dollar amount per grant 
4.27 	awarded, the geographical distribution of 
4.28 	grants awarded, the number of individuals 
4.29 	who received training and successfully 
4.30 	completed training programs, job placement 
4.31 	statistics, and data on minorities, youth, 
4.32 	underemployed individuals, and public 
4.33 	assistance recipients who received training. 
4.34 	If the appropriation for either year is 
4.35 	insufficient, the appropriation for the other 
5.1 	year is available. This appropriation is 
5.2 	available until spent.
5.3 	(c) $8,800,000 each year is from the general 
5.4 	fund for the state's vocational rehabilitation 
5.5 	program under Minnesota Statutes, chapter 
5.6 	268A.
5.7 	(d) $5,778,000 each year is from the general 
5.8 	fund for the state services for the blind 
5.9 	activities.
5.10 	(e) $2,261,000 each year is from the general 
5.11 	fund for grants to centers for independent 
5.12 	living under Minnesota Statutes, section 
5.13 	268A.11.
5.14 	(f) $5,405,000 each year is from the general 
5.15 	fund and $6,147,000 each year is from the 
5.16 	workforce development fund for extended 
5.17 	employment services for persons with severe 
5.18 	disabilities or related conditions under 
5.19 	Minnesota Statutes, section 268A.15. Of 
5.20 	this appropriation, $125,000 each year is to 
5.21 	supplement funds paid for wage incentives 
5.22 	for the community support fund established 
5.23 	in Minnesota Rules, part 3300.2045.
5.24 	(g) $1,555,000 each year is from the general 
5.25 	fund for grants to programs that provide 
5.26 	employment support services to persons with 
5.27 	mental illness under Minnesota Statutes, 
5.28 	sections 268A.13 and 268A.14. Grants 
5.29 	may be used for special projects for young 
5.30 	people with mental illness transitioning from 
5.31 	school to work and people with serious 
5.32 	mental illness receiving services through 
5.33 	a mental health court or civil commitment 
5.34 	court. Special projects must demonstrate 
5.35 	interagency collaboration.
6.1 	(h) The first $3,300,000 deposited in each 
6.2 	year of the biennium into the contingent 
6.3 	account created under Minnesota Statutes, 
6.4 	section 268.199, shall be transferred before 
6.5 	the closing of each fiscal year to the 
6.6 	workforce development fund created under 
6.7 	Minnesota Statutes, section 116L.20. 

6.8	Subd. 4.State-Funded Administration
 		1,019,000
		1,019,000

6.9	Subd. 5.Transfers In
 					
6.10 	(a) The commissioner of management and 
6.11 	budget shall transfer $45,000,000 in fiscal 
6.12 	year 2012 from the Douglas J. Johnson 
6.13 	economic protection trust fund in Minnesota 
6.14 	Statutes, section 298.292, to the general 
6.15 	fund. The commissioner shall transfer 
6.16 	$15,000,000 on July 1 in each of the years 
6.17 	2015, 2016, and 2017 from the general 
6.18 	fund to the Douglas J. Johnson economic 
6.19 	protection trust fund. For each transfer to 
6.20 	the Douglas J. Johnson economic protection 
6.21 	trust fund, the commissioner shall determine 
6.22 	the total amount of interest and other 
6.23 	earnings that would have accrued to the fund 
6.24 	if the transfers to the general fund under 
6.25 	this paragraph had not been made and add 
6.26 	this amount to the transfer. The amounts 
6.27 	necessary for these transfers are appropriated 
6.28 	from the general fund in the fiscal years 
6.29 	specified for the transfers.
6.30 	(b) $4,608,000 the first year and $4,608,000 
6.31 	the second year are transferred from the 
6.32 	workforce development fund to the general 
6.33 	fund.

6.34
6.35	Sec. 4. SCIENCE AND TECHNOLOGY 
AUTHORITY
 	$
	107,000
	$
	107,000

7.1	Sec. 5. HOUSING FINANCE AGENCY

7.2	Subdivision 1.Total Appropriation
 	$
	37,595,000
	$
	37,595,000
	
7.3 	The amounts that may be spent for each 
7.4 	purpose are specified in the following 
7.5 	subdivisions.
7.6 	This appropriation is for transfer to the 
7.7 	housing development fund for the programs 
7.8 	specified. Except as otherwise indicated, this 
7.9 	transfer is part of the agency's permanent 
7.10 	budget base.

7.11	Subd. 2.Challenge Program
 		7,159,000
		7,159,000
	
7.12 	For the economic development and housing 
7.13 	challenge program under Minnesota 
7.14 	Statutes, section 462A.33. Of this amount, 
7.15 	$1,395,000 each year shall be made available 
7.16 	during the first eight months of the fiscal 
7.17 	year exclusively for housing projects for 
7.18 	American Indians. Any funds not committed 
7.19 	to housing projects for American Indians in 
7.20 	the first eight months of the fiscal year shall 
7.21 	be available for any eligible activity under 
7.22 	Minnesota Statutes, section 462A.33.

7.23	Subd. 3.Housing Trust Fund
 		8,555,000
		8,555,000
	
7.24 	For deposit in the housing trust fund account 
7.25 	created under Minnesota Statutes, section 
7.26 	462A.201, and used for the purposes 
7.27 	provided in that section.

7.28	Subd. 4.Rental Assistance for Mentally Ill
 		2,638,000
		2,638,000
	
7.29 	For a rental housing assistance program for 
7.30 	persons with a mental illness or families with 
7.31 	an adult member with a mental illness under 
7.32 	Minnesota Statutes, section 462A.2097.

7.33	Subd. 5.Family Homeless Prevention
 		7,465,000
		7,465,000
	
8.1 	For the family homeless prevention and 
8.2 	assistance programs under Minnesota 
8.3 	Statutes, section 462A.204.

8.4	Subd. 6.Home Ownership Assistance Fund
 		858,000
		858,000
	
8.5 	For the home ownership assistance program 
8.6 	under Minnesota Statutes, section 462A.21, 
8.7 	subdivision 8.

8.8	Subd. 7.Affordable Rental Investment Fund
 		7,319,000
		7,319,000
	
8.9 	(a) For the affordable rental investment fund 
8.10 	program under Minnesota Statutes, section 
8.11 	462A.21, subdivision 8b. The appropriation 
8.12 	is to finance the acquisition, rehabilitation, 
8.13 	and debt restructuring of federally assisted 
8.14 	rental property and for making equity 
8.15 	take-out loans under Minnesota Statutes, 
8.16 	section 462A.05, subdivision 39.
8.17 	(b) The owner of federally assisted rental 
8.18 	property must agree to participate in the 
8.19 	applicable federally assisted housing program 
8.20 	and to extend any existing low-income 
8.21 	affordability restrictions on the housing for 
8.22 	the maximum term permitted. The owner 
8.23 	must also enter into an agreement that gives 
8.24 	local units of government, housing and 
8.25 	redevelopment authorities, and nonprofit 
8.26 	housing organizations the right of first refusal 
8.27 	if the rental property is offered for sale to 
8.28 	unrelated third parties. Priority must be 
8.29 	given among comparable federally assisted 
8.30 	rental properties to properties with the 
8.31 	longest remaining term under an agreement 
8.32 	for federal assistance. Priority must also 
8.33 	be given among comparable rental housing 
8.34 	developments to developments that are or 
8.35 	will be owned by local government units, a 
9.1 	housing and redevelopment authority, or a 
9.2 	nonprofit housing organization.
9.3 	(c) The appropriation also may be used to 
9.4 	finance the acquisition, rehabilitation, and 
9.5 	debt restructuring of existing supportive 
9.6 	housing properties. For purposes of this 
9.7 	subdivision, "supportive housing" means 
9.8 	affordable rental housing with links to 
9.9 	services necessary for individuals, youth, and 
9.10 	families with children to maintain housing 
9.11 	stability.

9.12	Subd. 8.Housing Rehabilitation
 		2,633,000
		2,633,000
	
9.13 	For the housing rehabilitation program 
9.14 	under Minnesota Statutes, section 462A.05, 
9.15 	subdivision 14, for rental housing 
9.16 	developments.

9.17
9.18	Subd. 9.Homeownership Education, 
Counseling, and Training
 		751,000
		751,000
	
9.19 	For the homeownership education, 
9.20 	counseling, and training program under 
9.21 	Minnesota Statutes, section 462A.209. 
9.22 	Notwithstanding Minnesota Statutes, section 
9.23 	462A.209, subdivision 7, paragraph (b), 
9.24 	more than one-half of the funds awarded 
9.25 	for foreclosure prevention and assistance 
9.26 	activities may be used for mortgage or 
9.27 	financial counseling services.

9.28	Subd. 10.Capacity-Building Grants
 		217,000
		217,000
	
9.29 	For nonprofit capacity-building grants 
9.30 	under Minnesota Statutes, section 462A.21, 
9.31 	subdivision 3b.

9.32
9.33	Sec. 6. DEPARTMENT OF LABOR AND 
INDUSTRY

9.34	Subdivision 1.Total Appropriation
 	$
	21,688,000
	$
	21,688,000

10.1	Appropriations by Fund
	
10.2		2012
	2013
	
10.3	General
	817,000
	817,000
	
10.4
10.5	Workers' 
Compensation
	20,871,000
	20,871,000
	
10.6 	The amounts that may be spent for each 
10.7 	purpose are specified in the following 
10.8 	subdivisions.

10.9	Subd. 2.Workers' Compensation
 		14,832,000
		14,832,000
	
10.10 	This appropriation is from the workers' 
10.11 	compensation fund.
10.12 	$200,000 each year is for grants to the 
10.13 	Vinland Center for rehabilitation services. 
10.14 	Grants shall be distributed as the department 
10.15 	refers injured workers to the Vinland Center 
10.16 	for rehabilitation services.

10.17	Subd. 3.Labor Standards and Apprenticeship
 		817,000
		817,000
	
10.18 	This appropriation is from the general fund 
10.19 	for the labor standards and apprenticeship 
10.20 	program.

10.21	Subd. 4.General Support
 		6,039,000
		6,039,000
	
10.22 	This appropriation is from the workers' 
10.23 	compensation fund.

10.24
10.25	Sec. 7. BUREAU OF MEDIATION 
SERVICES

10.26	Subdivision 1.Total Appropriation
 	$
	1,584,000
	$
	1,584,000
	
10.27 	The amounts that may be spent for each 
10.28 	purpose are specified in the following 
10.29 	subdivisions.

10.30	Subd. 2.Mediation Services
 		1,516,000
		1,516,000

10.31
10.32	Subd. 3.Labor Management Cooperation 
Grants
 		68,000
		68,000
	
11.1 	$68,000 each year is for grants to area labor 
11.2 	management committees. Grants may be 
11.3 	awarded for a 12-month period beginning 
11.4 	July 1 each year. Any unencumbered balance 
11.5 	remaining at the end of the first year does not 
11.6 	cancel but is available for the second year.

11.7
11.8	Sec. 8. WORKERS' COMPENSATION 
COURT OF APPEALS
 	$
	1,703,000
	$
	1,703,000
	
11.9 	This appropriation is from the workers' 
11.10 	compensation fund. 

11.11	Sec. 9. BOARD OF ACCOUNTANCY
 	$
	630,000
	$
	480,000
	
11.12 	$150,000 the first year is to fund the costs 
11.13 	associated with the e-licensing adaptor 
11.14 	integration development. This is a onetime 
11.15 	appropriation.

11.16
11.17
11.18
11.19	Sec. 10. BOARD OF ARCHITECTURE, 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	924,000
	$
	774,000
	
11.20 	$150,000 the first year is to fund the costs 
11.21 	associated with the e-licensing adaptor 
11.22 	integration development. This is a onetime 
11.23 	appropriation.

11.24
11.25	Sec. 11. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	1,046,000
	$
	1,046,000

11.26	Sec. 12. BOARD OF BARBER EXAMINERS
 	$
	257,000
	$
	257,000

11.27 	ARTICLE 2
11.28 	MISCELLANEOUS ECONOMIC DEVELOPMENT PROVISIONS

11.29 	Section 1. Minnesota Statutes 2010, section 116J.035, is amended by adding a 
11.30 	subdivision to read:
11.31 		Subd. 7.Monitoring pass-through grant recipients. The commissioner shall 
11.32 	monitor the activities and outcomes of programs and services funded by legislative 
12.1 	appropriations and administered by the department on a pass-through basis. Unless 
12.2 	amounts are otherwise appropriated for administrative costs, the commissioner may 
12.3 	retain up to five percent of the amount appropriated to the department for grants to 
12.4 	pass-through entities. Amounts retained are deposited to a special revenue account and 
12.5 	are appropriated to the commissioner for costs incurred in administering and monitoring 
12.6 	the pass-through grants.

12.7 	Sec. 2. Minnesota Statutes 2010, section 116J.8737, subdivision 1, is amended to read:
12.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
12.9 	have the meanings given.
12.10 	(b) "Qualified small business" means a business that has been certified by the 
12.11 	commissioner under subdivision 2.
12.12 	(c) "Qualified investor" means an investor who has been certified by the 
12.13 	commissioner under subdivision 3.
12.14 	(d) "Qualified fund" means a pooled angel investment network fund that has been 
12.15 	certified by the commissioner under subdivision 4.
12.16 	(e) "Qualified investment" means a cash investment in a qualified small business 
12.17 	of a minimum of:
12.18 	(1) $10,000 in a calendar year by a qualified investor; or
12.19 	(2) $30,000 in a calendar year by a qualified fund.
12.20 	A qualified investment must be made in exchange for common stock, a partnership 
12.21 	or membership interest, preferred stock, debt with mandatory conversion to equity, or an 
12.22 	equivalent ownership interest as determined by the commissioner.
12.23 	(f) "Family" means a family member within the meaning of the Internal Revenue 
12.24 	Code, section 267(c)(4).
12.25 	(g) "Pass-through entity" means a corporation that for the applicable taxable year is 
12.26 	treated as an S corporation or a general partnership, limited partnership, limited liability 
12.27 	partnership, trust, or limited liability company and which for the applicable taxable year is 
12.28 	not taxed as a corporation under chapter 290.
12.29 	(h) "Intern" means a student of an accredited institution of higher education, or a 
12.30 	former student who has graduated in the past six months from an accredited institution 
12.31 	of higher education, who is employed by a qualified small business in a nonpermanent 
12.32 	position for a duration of nine months or less that provides training and experience in the 
12.33 	primary business activity of the business.

12.34 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2011.

13.1 	Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 2, is amended to read:
13.2 		Subd. 2.Certification of qualified small businesses. (a) Businesses may apply 
13.3 	to the commissioner for certification as a qualified small business for a calendar year. 
13.4 	The application must be in the form and be made under the procedures specified by the 
13.5 	commissioner, accompanied by an application fee of $150. Application fees are deposited 
13.6 	in the small business investment tax credit administration account in the special revenue 
13.7 	fund. The application for certification for 2010 must be made available on the department's 
13.8 	Web site by August 1, 2010. Applications for subsequent years' certification must be made 
13.9 	available on the department's Web site by November 1 of the preceding year.
13.10 	(b) Within 30 days of receiving an application for certification under this subdivision, 
13.11 	the commissioner must either certify the business as satisfying the conditions required of a 
13.12 	qualified small business, request additional information from the business, or reject the 
13.13 	application for certification. If the commissioner requests additional information from the 
13.14 	business, the commissioner must either certify the business or reject the application within 
13.15 	30 days of receiving the additional information. If the commissioner neither certifies the 
13.16 	business nor rejects the application within 30 days of receiving the original application or 
13.17 	within 30 days of receiving the additional information requested, whichever is later, then 
13.18 	the application is deemed rejected, and the commissioner must refund the $150 application 
13.19 	fee. A business that applies for certification and is rejected may reapply.
13.20 	(c) To receive certification, a business must satisfy all of the following conditions:
13.21 	(1) the business has its headquarters in Minnesota;
13.22 	(2) at least 51 percent of the business's employees are employed in Minnesota, and 
13.23 	51 percent of the business's total payroll is paid or incurred in the state;
13.24 	(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 
13.25 	in one of the following as its primary business activity:
13.26 	(i) using proprietary technology to add value to a product, process, or service in a 
13.27 	qualified high-technology field;
13.28 	(ii) researching or developing a proprietary product, process, or service in a qualified 
13.29 	high-technology field; or
13.30 	(iii) researching, developing, or producing a new proprietary technology for use in 
13.31 	the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
13.32 	(4) other than the activities specifically listed in clause (3), the business is not 
13.33 	engaged in real estate development, insurance, banking, lending, lobbying, political 
13.34 	consulting, information technology consulting, wholesale or retail trade, leisure, 
13.35 	hospitality, transportation, construction, ethanol production from corn, or professional 
14.1 	services provided by attorneys, accountants, business consultants, physicians, or health 
14.2 	care consultants;
14.3 	(5) the business has fewer than 25 employees;
14.4 	(6) the business must pay its employees annual wages of at least 175 percent of the 
14.5 	federal poverty guideline for the year for a family of four and must pay its interns annual 
14.6 	wages of at least 175 percent of the federal minimum wage used for federally covered 
14.7 	employers, except that this requirement must be reduced proportionately for employees 
14.8 	and interns who work less than full-time, and does not apply to an executive, officer, or 
14.9 	member of the board of the business, or to any employee who owns, controls, or holds 
14.10 	power to vote more than 20 percent of the outstanding securities of the business;
14.11 	(7) the business has not been in operation for more than ten years;
14.12 	(8) the business has not previously received private equity investments of more 
14.13 	than $2,000,000 $4,000,000; and
14.14 	(9) the business is not an entity disqualified under section 80A.50, paragraph (b), 
14.15 	clause (3).
14.16 	(d) In applying the limit under paragraph (c), clause (5), the employees in all 
14.17 	members of the unitary business, as defined in section 290.17, subdivision 4, must be 
14.18 	included.
14.19 	(e) In order for a qualified investment in a business to be eligible for tax credits, the 
14.20 	business must have applied for and received certification for the calendar year in which 
14.21 	the investment was made prior to the date on which the qualified investment was made.
14.22 	(f) The commissioner must maintain a list of businesses certified under this 
14.23 	subdivision for the calendar year and make the list accessible to the public on the 
14.24 	department's Web site.
14.25 	(g) For purposes of this subdivision, the following terms have the meanings given:
14.26 	(1) "qualified high-technology field" includes aerospace, agricultural processing, 
14.27 	renewable energy, energy efficiency and conservation, environmental engineering, food 
14.28 	technology, cellulosic ethanol, information technology, materials science technology, 
14.29 	nanotechnology, telecommunications, biotechnology, medical device products, 
14.30 	pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar 
14.31 	fields; and
14.32 	(2) "proprietary technology" means the technical innovations that are unique and 
14.33 	legally owned or licensed by a business and includes, without limitation, those innovations 
14.34 	that are patented, patent pending, a subject of trade secrets, or copyrighted.

14.35 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2011.

15.1 	Sec. 4. Minnesota Statutes 2010, section 116J.8737, subdivision 4, is amended to read:
15.2 		Subd. 4.Certification of qualified funds. (a) A pass-through entity may apply to 
15.3 	the commissioner for certification as a qualified fund for a calendar year. The application 
15.4 	must be in the form and be made under the procedures specified by the commissioner, 
15.5 	accompanied by an application fee of $1,000. Application fees are deposited in the small 
15.6 	business investment tax credit administration account in the special revenue fund. The 
15.7 	application for certification for 2010 of qualified funds must be made available on the 
15.8 	department's Web site by August 1, 2010. Applications for subsequent years' certification 
15.9 	must be made available by November 1 of the preceding year.
15.10 	(b) Within 30 days of receiving an application for certification under this subdivision, 
15.11 	the commissioner must either certify the fund as satisfying the conditions required of a 
15.12 	qualified fund, request additional information from the fund, or reject the application 
15.13 	for certification. If the commissioner requests additional information from the fund, 
15.14 	the commissioner must either certify the fund or reject the application within 30 days 
15.15 	of receiving the additional information. If the commissioner neither certifies the fund 
15.16 	nor rejects the application within 30 days of receiving the original application or within 
15.17 	30 days of receiving the additional information requested, whichever is later, then the 
15.18 	application is deemed rejected, and the commissioner must refund the $1,000 application 
15.19 	fee. A fund that applies for certification and is rejected may reapply.
15.20 	(c) To receive certification, a fund must:
15.21 	(1) invest or intend to invest in qualified small businesses;
15.22 	(2) be organized as a pass-through entity; and
15.23 	(3) have at least three separate investors, all of whom at least three whose investment 
15.24 	is made in the certified business and who seek a tax credit allocation satisfy the conditions 
15.25 	in subdivision 3, paragraph (c).
15.26 	(d) Investments in the fund may consist of equity investments or notes that pay 
15.27 	interest or other fixed amounts, or any combination of both.
15.28 	(e) In order for a qualified investment in a qualified small business to be eligible for 
15.29 	tax credits, a qualified fund that makes the investment must have applied for and received 
15.30 	certification for the calendar year prior to making the qualified investment.

15.31 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2011.

15.32 	Sec. 5. Minnesota Statutes 2010, section 116L.04, subdivision 1, is amended to read:
15.33 		Subdivision 1.Partnership program. (a) The partnership program mayshall 
15.34 	provide grants-in-aidcompetitive grants to educational institutions or other nonprofit 
16.1 	educational institutionstraining organizations, including, but not limited to, programs 
16.2 	administered by a political subdivision, using the following guidelines:
16.3 	(1) the educational institution or other nonprofit educational institutiontraining 
16.4 	organization is a provider of training within the state in either the public or private sector;
16.5 	(2) the program involves skills training that is an area of employment need; and
16.6 	(3) preference will be given to educational institutions or other nonprofit training 
16.7 	institutions whichorganizations that serve economically disadvantaged people, minorities, 
16.8 	or those who are victims of economic dislocation and to businesses located in rural 
16.9 	areas; and
16.10 	(4) consideration shall be given to programs with a demonstrated track record of 
16.11 	participants' successful completion of training and job placement and retention levels.
16.12 	(b) A single grant to any one institution or organization shall not exceed $400,000
16.13 	$1,000,000, in any year. A portion of a grant may be used for preemployment training.
16.14 	(c) Each institution or organization must provide for the dissemination of summary 
16.15 	results of a grant-funded project, including, but not limited to, information about 
16.16 	curriculum and all supporting materials developed in conjunction with the grant. Results 
16.17 	of projects developed by any Minnesota State Colleges and Universities system institution 
16.18 	must be disseminated throughout the system.

16.19 	EFFECTIVE DATE. This section is effective for grants made on or after July 1, 
16.20 	2011.

16.21 	Sec. 6. Minnesota Statutes 2010, section 341.321, is amended to read:
16.22 	341.321 FEE SCHEDULE.
16.23 	(a) The fee schedule for professional licenses issued by the commission is as follows:
16.24 	(1) referees, $25 $45 for each initial license and each renewal;
16.25 	(2) promoters, $400 for each initial license and each renewal;
16.26 	(3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
16.27 	(4) trainers, $25 $45 for each initial license and each renewal;
16.28 	(5) ring announcers, $25 $45 for each initial license and each renewal;
16.29 	(6) seconds, $25 $45 for each initial license and each renewal;
16.30 	(7) timekeepers, $25 $45 for each initial license and each renewal;
16.31 	(8) combatants, $25 $45 for each initial license and each renewal;
16.32 	(9) managers, $25 $45 for each initial license and each renewal; and
16.33 	(10) ringside physicians, $25 $45 for each initial license and each renewal.
17.1 	In addition to the license fee and the late filing penalty fee in section 341.32, subdivision 
17.2 	2, if applicable, an individual who applies for a combatant professional license on the 
17.3 	same day the combative sporting event is held shall pay a late fee of $100 plus the original 
17.4 	license fee of $45 at the time the application is submitted.
17.5 	(b) The fee schedule for amateur licenses issued by the commission is as follows:
17.6 	(1) referees, $10 $45 for each initial license and each renewal;
17.7 	(2) promoters, $100 $400 for each initial license and each renewal;
17.8 	(3) judges and knockdown judges, $10 $45 for each initial license and each renewal;
17.9 	(4) trainers, $10 $45 for each initial license and each renewal;
17.10 	(5) ring announcers, $10 $45 for each initial license and each renewal;
17.11 	(6) seconds, $10 $45 for each initial license and each renewal;
17.12 	(7) timekeepers, $10 $45 for each initial license and each renewal;
17.13 	(8) combatant, $10 $25 for each initial license and each renewal;
17.14 	(9) managers, $10 $45 for each initial license and each renewal; and
17.15 	(10) ringside physicians, $10 $45 for each initial license and each renewal.
17.16 	(c) The commission shall establish a contest fee for each combative sport contest. 
17.17 	The professional combative sport contest fee is $1,500 per event or not more than four 
17.18 	percent of the gross ticket sales, whichever is greater, as determined by the commission 
17.19 	when the combative sport contest is scheduled, except that the amateur combative sport 
17.20 	contest fee shall be $150 $500 or not more than four percent of the gross ticket sales, 
17.21 	whichever is greater. The commission shall consider the size and type of venue when 
17.22 	establishing a contest fee. The commission may establish the maximum number of 
17.23 	complimentary tickets allowed for each event by rule. An A professional or amateur 
17.24 	combative sport contest fee is nonrefundable.
17.25 	(d) All fees and penalties collected by the commission must be deposited in the 
17.26 	commission account in the special revenue fund.

17.27 	Sec. 7. Laws 2009, chapter 78, article 1, section 18, is amended to read:

17.28
17.29	Sec. 18. COMBATIVE SPORTS 
COMMISSION
 	$
	80,000
	$
	80,000
	
17.30 	This is a onetime appropriation. The 
17.31 	Combative Sports Commission expires on 
17.32 	July 1, 2011, unless the commissioner of 
17.33 	finance determines that the commission's 
17.34 	projected expenditures for the fiscal biennium 
17.35 	ending June 30, 2013, will not exceed the 
18.1 	commission's projected revenues for the 
18.2 	fiscal biennium ending June 30, 2013, from 
18.3 	fees and penalties authorized in Minnesota 
18.4 	Statutes 2008, chapter 341.

18.5 	ARTICLE 3
18.6 	LABOR AND INDUSTRY

18.7 	Section 1. Minnesota Statutes 2010, section 181.723, subdivision 5, is amended to read:
18.8 		Subd. 5.Application. To obtain an independent contractor exemption certificate, 
18.9 	the individual must submit, in the manner prescribed by the commissioner, a complete 
18.10 	application and the certificate fee required under subdivision 14.
18.11 	(a) A complete application must include all of the following information:
18.12 	(1) the individual's full name;
18.13 	(2) the individual's residence address and telephone number;
18.14 	(3) the individual's business name, address, and telephone number;
18.15 	(4) the services for which the individual is seeking an independent contractor 
18.16 	exemption certificate;
18.17 	(5) the individual's Social Security number;
18.18 	(6) the individual's or the individual's business federal employer identification 
18.19 	number, if a number has been issued to the individual or the individual's business;
18.20 	(7) any information or documentation that the commissioner requires by rule that 
18.21 	will assist the department in determining whether to grant or deny the individual's 
18.22 	application; and
18.23 	(8) the individual's sworn statement that the individual meets all of the following 
18.24 	conditions:
18.25 	(i) maintains a separate business with the individual's own office, equipment, 
18.26 	materials, and other facilities;
18.27 	(ii) holds or has applied for a federal employer identification number or has filed 
18.28 	business or self-employment income tax returns with the federal Internal Revenue Service 
18.29 	if the person has performed services in the previous year for which the individual is 
18.30 	seeking the independent contractor exemption certificate;
18.31 	(iii) operates under contracts to perform specific services for specific amounts of 
18.32 	money and under which the individual controls the means of performing the services;
18.33 	(iv) incurs the main expenses related to the service that the individual performs 
18.34 	under contract;
19.1 	(v) is responsible for the satisfactory completion of services that the individual 
19.2 	contracts to perform and is liable for a failure to complete the service;
19.3 	(vi) receives compensation for service performed under a contract on a commission 
19.4 	or per-job or competitive bid basis and not on any other basis;
19.5 	(vii) may realize a profit or suffer a loss under contracts to perform service;
19.6 	(viii) has continuing or recurring business liabilities or obligations; and
19.7 	(ix) the success or failure of the individual's business depends on the relationship of 
19.8 	business receipts to expenditures.
19.9 	(b) Individuals who are applying for or renewing a residential building contractor or 
19.10 	residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81, 
19.11 	326B.815, 326B.821 to 326B.86, 326B.87 to 326B.885, and 327B.041, and any rules 
19.12 	promulgated pursuant thereto, may simultaneously apply for or renew an independent 
19.13 	contractor exemption certificate. The commissioner shall create an application form 
19.14 	that allows for the simultaneous application for both a residential building contractor 
19.15 	or residential remodeler license and an independent contractor exemption certificate. 
19.16 	If individuals simultaneously apply for or renew a residential building contractor or 
19.17 	residential remodeler license and an independent contractor exemption certificate using 
19.18 	the form created by the commissioner, individuals shall only be required to provide, in 
19.19 	addition to the information required by section 326B.83 and rules promulgated pursuant 
19.20 	thereto, the sworn statement required by paragraph (a), clause (8), and any additional 
19.21 	information required by this subdivision that is not also required by section 326B.83
19.22 	and any rules promulgated thereto. When individuals submit a simultaneous application 
19.23 	on the form created by the commissioner for both a residential building contractor or 
19.24 	residential remodeler license and an independent contractor exemption certificate, the 
19.25 	application fee shall be $150. An independent contractor exemption certificate that is in 
19.26 	effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by 
19.27 	the commissioner or canceled by the individual.
19.28 	(c) Within 30 days of receiving a complete application and the certificate fee, the 
19.29 	commissioner must either grant or deny the application. The commissioner may deny 
19.30 	an application for an independent contractor exemption certificate if the individual has 
19.31 	not submitted a complete application and certificate fee or if the individual does not 
19.32 	meet all of the conditions for holding the independent contractor exemption certificate. 
19.33 	The commissioner may revoke an independent contractor exemption certificate if the 
19.34 	commissioner determines that the individual no longer meets all of the conditions for 
19.35 	holding the independent contractor exemption certificate, commits any of the actions 
19.36 	set out in subdivision 7, or fails to cooperate with a department investigation into the 
20.1 	continued validity of the individual's certificate. Once issued, an independent contractor 
20.2 	exemption certificate remains in effect for four years unless:
20.3 	(1) revoked by the commissioner; or
20.4 	(2) canceled by the individual.
20.5 	(d) If the department denies an individual's original or renewal application for 
20.6 	an independent contractor exemption certificate or revokes an independent contractor 
20.7 	exemption certificate, the commissioner shall issue to the individual an order denying or 
20.8 	revoking the certificate. The commissioner may issue an administrative penalty order to 
20.9 	an individual or person who commits any of the actions set out in subdivision 7. The 
20.10 	commissioner may file and enforce the unpaid portion of a penalty as a judgment in 
20.11 	district court without further notice or additional proceedings.
20.12 	(e) An individual or person to whom the commissioner issues an order under 
20.13 	paragraph (d) shall have 30 days after service of the order to request a hearing. The 
20.14 	request for hearing must be in writing and must be served on or faxed to the commissioner 
20.15 	at the address or facsimile number specified in the order by the 30th day after service of 
20.16 	the order. If the individual does not request a hearing or if the individual's request for a 
20.17 	hearing is not served on or faxed to the commissioner by the 30th day after service of the 
20.18 	order, the order shall become a final order of the commissioner and will not be subject to 
20.19 	review by any court or agency. The date on which a request for hearing is served by mail 
20.20 	shall be the postmark date on the envelope in which the request for hearing is mailed. If 
20.21 	the individual serves or faxes a timely request for hearing, the hearing shall be a contested 
20.22 	case hearing and shall be held in accordance with chapter 14.

20.23 	Sec. 2. Minnesota Statutes 2010, section 182.6553, subdivision 6, is amended to read:
20.24 		Subd. 6.Enforcement. This section shall be enforced by the commissioner under 
20.25 	section sections 182.66 and182.661. A violation of this section is subject to the penalties 
20.26 	provided under section 182.666.

20.27 	Sec. 3. Minnesota Statutes 2010, section 326B.04, subdivision 2, is amended to read:
20.28 		Subd. 2.Deposits.  Unless otherwise specifically designated by law: (1) all money 
20.29 	collected under sections 144.122, paragraph (f); 181.723; 326B.092 to 326B.096; 
20.30 	326B.101 to 326B.194; 326B.197; 326B.32 to 326B.399; 326B.43 to 326B.49; 326B.52
20.31 	to 326B.59; 326B.802 to 326B.885; 326B.90 to 326B.998; 327.31 to 327.36; and 
20.32 	327B.01 to 327B.12, except penalties, is credited to the construction code fund; (2) all 
20.33 	fees collected under section 45.23 sections 326B.098 to 326B.099 in connection with 
20.34 	continuing education for residential contractors, residential remodelers, and residential 
21.1 	roofersany license, registration, or certificate issued pursuant to this chapter are credited 
21.2 	to the construction code fund; and (3) all penalties assessed under the sections set forth 
21.3 	in clauses (1) and (2) and all penalties assessed under sections 144.99 to 144.993 in 
21.4 	connection with any violation of sections 326B.43 to 326B.49 or 326B.52 to 326B.59 or 
21.5 	the rules adopted under those sections are credited to the assigned risk safety account 
21.6 	established by section 79.253.

21.7 	Sec. 4. Minnesota Statutes 2010, section 326B.091, is amended to read:
21.8 	326B.091 DEFINITIONS.
21.9 		Subdivision 1.Applicability. For purposes of sections 326B.091 to 326B.098
21.10 	326B.099, the terms defined in this section have the meanings given them.
21.11 		Subd. 2.Applicant. "Applicant" means a person who has submitted to the 
21.12 	department an application for aan initial or renewal license.
21.13 		Subd. 3.License. "License" means any registration, certification, or other form 
21.14 	of approval authorized by this chapter 326B and chapter 327B to be issued by the 
21.15 	commissioner or department as a condition of doing business or conducting a trade, 
21.16 	profession, or occupation in Minnesota. License includes specifically but not exclusively 
21.17 	an authorization issued by the commissioner or department: to perform electrical work, 
21.18 	plumbing or water conditioning work, high pressure piping work, or residential building 
21.19 	work of a residential contractor, residential remodeler, or residential roofer; to install 
21.20 	manufactured housing; to serve as a building official; or to operate a boiler or boat.
21.21 		Subd. 4.Licensee. "Licensee" means the person named on the license as the person 
21.22 	authorized to do business or conduct the trade, profession, or occupation in Minnesota.
21.23 		Subd. 5.Notification date. "Notification date" means the date of the written 
21.24 	notification from the department to an applicant that the applicant is qualified to take the 
21.25 	examination required for licensure.
21.26 		Subd. 5b.Qualifying individual. "Qualifying individual" means the individual 
21.27 	responsible for obtaining continuing education on behalf of a residential building 
21.28 	contractor, residential remodeler, or residential roofer licensed pursuant to sections 
21.29 	326B.801 to 326B.885.
21.30 		Subd. 6.Renewal deadline. "Renewal deadline," when used with respect to a 
21.31 	license, means 30 days before the date that the license expires.

21.32 	Sec. 5. Minnesota Statutes 2010, section 326B.098, is amended to read:
21.33 	326B.098 CONTINUING EDUCATION.
22.1 		Subdivision 1.Applicability Department seminars. This section applies to 
22.2 	seminars offered by the department for the purpose of allowing enabling licensees to meet 
22.3 	continuing education requirements for license renewal.
22.4 		Subd. 2.Rescheduling. An individual who is registered with the department to 
22.5 	attend a seminar may reschedule one time only, to attend the same seminar on a date 
22.6 	within one year after the date of the seminar the individual was registered to attend.
22.7 		Subd. 3.Fees nonrefundable. All seminar fees paid to the department are 
22.8 	nonrefundable except for any overpayment of fees or if the department cancels the seminar.

22.9 	Sec. 6. [326B.0981] CONTINUING EDUCATION; NONDEPARTMENT 
22.10 	SEMINARS.
22.11 	This section applies to seminars that are offered by an entity other than the 
22.12 	department for the purpose of enabling licensees to meet continuing education 
22.13 	requirements for license renewal.

22.14 	Sec. 7. Minnesota Statutes 2010, section 326B.13, subdivision 8, is amended to read:
22.15 		Subd. 8.Effective date of rules. A rule to adopt or amend the State Building Code 
22.16 	is effective 180 days after the filing of the rule with the secretary of state under section 
22.17 	14.16 or 14.26 publication of the rule's notice of adoption in the State Register. The rule 
22.18 	may provide for a later effective date. The rule may provide for an earlier effective date 
22.19 	if the commissioner or board proposing the rule finds that an earlier effective date is 
22.20 	necessary to protect public health and safety after considering, among other things, the 
22.21 	need for time for training of individuals to comply with and enforce the rule.

22.22 	Sec. 8. Minnesota Statutes 2010, section 326B.148, subdivision 1, is amended to read:
22.23 		Subdivision 1.Computation. To defray the costs of administering sections 
22.24 	326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in 
22.25 	connection with the construction of or addition or alteration to buildings and equipment or 
22.26 	appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge 
22.27 	receipts to award grants for code research and development and education.
22.28 	If the fee for the permit issued is fixed in amount the surcharge is equivalent to 
22.29 	one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June 
22.30 	30, 2011 2013, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5, 
22.31 	whichever amount is greater. For all other permits, the surcharge is as follows:
23.1 	(1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the 
23.2 	surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition, 
23.3 	or alteration;
23.4 	(2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths 
23.5 	mill (.0004) of the value between $1,000,000 and $2,000,000;
23.6 	(3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths 
23.7 	mill (.0003) of the value between $2,000,000 and $3,000,000;
23.8 	(4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth 
23.9 	mill (.0002) of the value between $3,000,000 and $4,000,000;
23.10 	(5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth 
23.11 	mill (.0001) of the value between $4,000,000 and $5,000,000; and
23.12 	(6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth 
23.13 	mill (.00005) of the value that exceeds $5,000,000.

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

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

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

23.30 	Sec. 12. Minnesota Statutes 2010, section 326B.42, subdivision 9, is amended to read:
23.31 		Subd. 9.Responsible licensed plumber individual. A contractor's "responsible 
23.32 	licensed plumber individual" means the licensed master plumber or licensed restricted 
24.1 	master plumber designated in writing by the contractor in the contractor's license 
24.2 	application, or in another manner acceptable to the commissioner, as the individual 
24.3 	responsible for the contractor's compliance with sections 326B.41 to 326B.49, all rules 
24.4 	adopted under these sections and sections 326B.50 to 326B.59, and all orders issued 
24.5 	under section 326B.082.

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

24.10 	Sec. 14. Minnesota Statutes 2010, section 326B.435, subdivision 2, is amended to read:
24.11 		Subd. 2.Powers; duties; administrative support. (a) The board shall have the 
24.12 	power to:
24.13 	(1) elect its chair, vice-chair, and secretary;
24.14 	(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 
24.15 	and containing such other provisions as may be useful and necessary for the efficient 
24.16 	conduct of the business of the board;
24.17 	(3) adopt the plumbing code that must be followed in this state and any plumbing 
24.18 	code amendments thereto. The plumbing code shall include the minimum standards 
24.19 	described in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board 
24.20 	shall adopt the plumbing code and any amendments thereto pursuant to chapter 14 and 
24.21 	as provided in subdivision 6, paragraphs (b), (c), and (d);
24.22 	(4) review requests for final interpretations and issue final interpretations as provided 
24.23 	in section 326B.127, subdivision 5;
24.24 	(5) adopt rules that regulate the licensure, certification, or registration of plumbing 
24.25 	contractors, journeymen, unlicensed individuals, master plumbers, restricted master 
24.26 	plumbers, restricted journeymen, restricted plumbing contractors, backflow prevention 
24.27 	rebuilders and testers, water conditioning contractors, and water conditioning installers, 
24.28 	and other persons engaged in the design, installation, and alteration of plumbing systems 
24.29 	or engaged in or working at the business of water conditioning installation or service, or 
24.30 	engaged in or working at the business of medical gas system installation, maintenance, or 
24.31 	repair, except for those individuals licensed under section 326.02, subdivisions 2 and 3. 
24.32 	The board shall adopt these rules pursuant to chapter 14 and as provided in subdivision 
24.33 	6, paragraphs (e) and (f);
25.1 	(6) adopt rules that regulate continuing education for individuals licensed as master 
25.2 	plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman 
25.3 	plumbers, water conditioning contractors, and water conditioning installers, and for 
25.4 	individuals certified under sections 326B.437 and 326B.438. The board shall adopt these 
25.5 	rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) and (f);
25.6 	(7) refer complaints or other communications to the commissioner, whether oral or 
25.7 	written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 
25.8 	order that the commissioner has the authority to enforce pertaining to code compliance, 
25.9 	licensure, or an offering to perform or performance of unlicensed plumbing services;
25.10 	(8) approve per diem and expenses deemed necessary for its members as provided in 
25.11 	subdivision 3;
25.12 	(9) approve license reciprocity agreements;
25.13 	(10) select from its members individuals to serve on any other state advisory council, 
25.14 	board, or committee; and
25.15 	(11) recommend the fees for licenses, registrations,  and certifications.
25.16 	Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 
25.17 	Board of High Pressure Piping Systems, the commissioner of labor and industry shall 
25.18 	administer and enforce the provisions of this chapter and any rules promulgated pursuant 
25.19 	thereto.
25.20 	(b) The board shall comply with section 15.0597, subdivisions 2 and 4.
25.21 	(c) The commissioner shall coordinate the board's rulemaking and recommendations 
25.22 	with the recommendations and rulemaking conducted by the other boards created pursuant 
25.23 	to this chapter. The commissioner shall provide staff support to the board. The support 
25.24 	includes professional, legal, technical, and clerical staff necessary to perform rulemaking 
25.25 	and other duties assigned to the board. The commissioner of labor and industry shall 
25.26 	supply necessary office space and supplies to assist the board in its duties.

25.27 	Sec. 15. [326B.437] REDUCED PRESSURE BACKFLOW PREVENTION 
25.28 	REBUILDERS AND TESTERS.
25.29 	(a) No person shall perform or offer to perform the installation, maintenance, repair, 
25.30 	replacement, or rebuilding of reduced pressure zone backflow prevention assemblies 
25.31 	unless the person obtains a plumbing contractor license. An individual shall not engage 
25.32 	in the testing, maintenance, repair, or rebuilding of reduced pressure zone backflow 
25.33 	prevention assemblies, as regulated by the plumbing code, unless the individual is certified 
25.34 	by the commissioner as a backflow prevention rebuilder. 
26.1 	(b) An individual shall not engage in testing of a reduced pressure zone backflow 
26.2 	prevention assembly, as regulated by the Plumbing Code, unless the individual possesses a 
26.3 	backflow prevention rebuilder certificate or is certified by the commissioner as a backflow 
26.4 	prevention tester. 
26.5 	(c) Certificates are issued for an initial period of two years and must be renewed 
26.6 	every two years thereafter for as long as the certificate holder installs, maintains, repairs, 
26.7 	rebuilds, or tests reduced pressure zone backflow prevention assemblies. For purposes 
26.8 	of calculating fees under section 326B.092, an initial or renewed backflow prevention 
26.9 	rebuilder or tester certificate shall be considered an entry level license. 
26.10 	(d) The Plumbing Board shall adopt expedited rules under section 14.389 that are 
26.11 	related to the certification of backflow prevention rebuilders and backflow prevention 
26.12 	testers. Section 326B.13, subdivision 8, does not apply to these rules. Notwithstanding the 
26.13 	18-month limitation under section 14.125, this authority expires on December 31, 2014. 
26.14 	(e) The department shall recognize certification programs that are a minimum of 16 
26.15 	contact hours and include the passage of an examination. The examination must consist of 
26.16 	a practical and a written component. This paragraph expires when the Plumbing Board 
26.17 	adopts rules under paragraph (d).

26.18 	Sec. 16. Minnesota Statutes 2010, section 326B.438, is amended to read:
26.19 	326B.438 MEDICAL GAS SYSTEMS.
26.20 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
26.21 	this subdivision have the meanings given them.
26.22 	(b) "Medical gas" means medical gas as defined under the National Fire Protection 
26.23 	Association NFPA 99C Standard on Gas and Vacuum Systems.
26.24 	(c) "Medical gas system" means a level 1, 2, or 3 piped medical gas and vacuum 
26.25 	system as defined under the National Fire Protection Association NFPA 99C Standard on 
26.26 	Gas and Vacuum Systems.
26.27 		Subd. 2.License and certification required. ANo person shall perform or offer 
26.28 	to perform the installation, maintenance, or repair of medical gas systems unless the 
26.29 	person obtains a contractor license. An individual shall not engage in the installation, 
26.30 	maintenance, or repair of a medical gas system unless the person individual possesses 
26.31 	a current Minnesota master or journeyman plumber's license and is certified by the 
26.32 	commissioner under rules adopted by the Minnesota Plumbing Board. The certification 
26.33 	must be renewed annually biennially for as long as the certificate holder engages in the 
26.34 	installation, maintenance, or repair of medical gas and vacuum systems. If a medical gas 
27.1 	and vacuum system certificate is not renewed within 12 months after its expiration the 
27.2 	medical gas and vacuum certificate is permanently forfeited.
27.3 		Subd. 3.Exemptions. (a) A person An individual who on August 1, 2010, holds
27.4 	possesses  a valid certificate authorized by meeting the requirements of  the American 
27.5 	Society of Sanitary Engineering (ASSE)  Standard 6010 and is a qualified brazer in 
27.6 	accordance with standards recommended by the provisions required in  the National 
27.7 	Fire Protection Association under NFPA (NFPA) 99C is exempt from the licensing 
27.8 	requirements of subdivision 2 and may install, maintain, and repair a medical gas system. 
27.9 	This exemption applies only if the person individual maintains a valid certification 
27.10 	authorized by the ASSE in accordance with ASSE Standard 6010 and the brazer 
27.11 	qualifications in NFPA 99C, and is certified by the commissioner under rules adopted by 
27.12 	the Minnesota Plumbing Board.
27.13 	(b) A person who on August 1, 2010, possesses a current Minnesota master or 
27.14 	journeyman plumber's license and a valid certificate authorized by the ASSE in accordance 
27.15 	with standards recommended by the National Fire Protection Association under NFPA 
27.16 	99C is exempt from the requirements of subdivision 2 and may install, maintain, and repair 
27.17 	a medical gas system. This exemption applies only if a person maintains a valid Minnesota 
27.18 	master or journeyman plumber's license and valid certification authorized by the ASSE.
27.19 		Subd. 4.Fees. The fee for a medical gas certificateFor the purpose of calculating 
27.20 	fees under section 326B.092, an initial or renewed medical gas certificate issued by the 
27.21 	commissioner according to subdivision 2 is $30 per year shall be considered a journeyman 
27.22 	level license.

27.23 	EFFECTIVE DATE. The requirement under subdivision 2 and subdivision 3 that a 
27.24 	master journeyman plumber or exempt individual must be certified by the commissioner 
27.25 	and the fee in subdivision 4 are not effective until 180 days after the Minnesota Plumbing 
27.26 	Board adopts rules.

27.27 	Sec. 17. Minnesota Statutes 2010, section 326B.46, subdivision 1a, is amended to read:
27.28 		Subd. 1a.Exemptions from licensing. (a) An individual without a contractor 
27.29 	license may do plumbing work on the individual's residence in accordance with 
27.30 	subdivision 1, paragraph (a).
27.31 	(b) An individual who is an employee working on the maintenance and repair of 
27.32 	plumbing equipment, apparatus, or facilities owned or leased by the individual's employer 
27.33 	and which is within the limits of property owned or leased, and operated or maintained by 
27.34 	the individual's employer, shall not be required to maintain a contractor license as long 
27.35 	as the employer has on file with the commissioner a current certificate of responsible 
28.1 	person. The certificate must be signed by the responsible individual. The responsible 
28.2 	individual must be a  master plumber or, in an area of the state that is not a city or town 
28.3 	with a population of more than 5,000 according to the last federal census, a restricted 
28.4 	master plumber,. The certificate must be signed by the responsible individual and must 
28.5 	state that the person signing the certificate is responsible for ensuring that the maintenance 
28.6 	and repair work performed by the employer's employees comply complies with sections 
28.7 	326B.41 to 326B.49, all rules adopted under those sections and sections 326B.50 to 
28.8 	326B.59, and all orders issued under section 326B.082. The employer must pay a filing 
28.9 	fee to file a certificate of responsible person individual with the commissioner. The 
28.10 	certificate shall expire two years from the date of filing. In order to maintain a current 
28.11 	certificate of responsible person individual, the employer must resubmit a certificate of 
28.12 	responsible person individual, with a filing fee, no later than two years from the date of the 
28.13 	previous submittal. The filing of the certificate of responsible person individual does not 
28.14 	exempt any employee of the employer from the requirements of this chapter regarding 
28.15 	individual licensing as a plumber or registration as a plumber's apprentice.
28.16 	(c) If a contractor employs a licensed plumber, the licensed plumber does not need a 
28.17 	separate contractor license to perform plumbing work on behalf of the employer within 
28.18 	the scope of the licensed plumber's license.
28.19 	(d) A person may perform and offer to perform building sewer or water service 
28.20 	installation without a contractor's license if the person is in compliance with the bond and 
28.21 	insurance requirements of subdivision 2.

28.22 	Sec. 18. Minnesota Statutes 2010, section 326B.46, subdivision 1b, is amended to read:
28.23 		Subd. 1b.Employment of master plumber or restricted master plumber. (a) 
28.24 	Each contractor must designate a responsible licensed plumber, who shall be responsible 
28.25 	for the performance of all plumbing work in accordance with sections 326B.41 to 
28.26 	326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all 
28.27 	orders issued under section 326B.082. A plumbing contractor's responsible licensed 
28.28 	plumber individual must be a master plumber. A restricted plumbing contractor's 
28.29 	responsible licensed plumber individual must be a master plumber or a restricted master 
28.30 	plumber. A plumbing contractor license authorizes the contractor to offer to perform 
28.31 	and, through licensed and registered individuals, to perform plumbing work in all areas 
28.32 	of the state. A restricted plumbing contractor license authorizes the contractor to offer 
28.33 	to perform and, through licensed and registered individuals, to perform plumbing work 
28.34 	in all areas of the state except in cities and towns with a population of more than 5,000 
28.35 	according to the last federal census.
29.1 	(b) If the contractor is an individual or sole proprietorship, the responsible licensed 
29.2 	plumber individual must be the individual, proprietor, or managing employee. If the 
29.3 	contractor is a partnership, the responsible licensed plumber individual must be a general 
29.4 	partner or managing employee. If the contractor is a limited liability company, the 
29.5 	responsible licensed plumber individual must be a chief manager or managing employee. 
29.6 	If the contractor is a corporation, the responsible licensed plumber individual must be 
29.7 	an officer or managing employee. If the responsible licensed plumber individual is a 
29.8 	managing employee, the responsible licensed plumber individual must be actively engaged 
29.9 	in performing plumbing work on behalf of the contractor, and cannot be employed in any 
29.10 	capacity as a plumber for any other contractor. An individual may be the responsible 
29.11 	licensed plumber individual for only one contractor.
29.12 	(c) All applications and renewals for contractor licenses shall include a verified 
29.13 	statement that the applicant or licensee has complied with this subdivision.

29.14 	Sec. 19. Minnesota Statutes 2010, section 326B.46, subdivision 2, is amended to read:
29.15 		Subd. 2.Bond; insurance. As a condition of licensing, each contractor (a) The 
29.16 	bond and insurance requirements of paragraphs (b) and (c) apply to each person who 
29.17 	performs or offers to perform plumbing work within the state, including any person who 
29.18 	offers to perform or performs sewer or water service installation without a contractor's 
29.19 	license. If the person performs or offers to perform any plumbing work other than sewer 
29.20 	or water service installation, then the person must meet the requirements of paragraphs 
29.21 	(b) and (c) as a condition of holding a contractor's license.
29.22 	(b) Each person who performs or offers to perform plumbing work within the state
29.23 	shall give and maintain bond to the state in the amount of at least $25,000 for (1) all 
29.24 	plumbing work entered into within the state or (2) all plumbing work and subsurface 
29.25 	sewage treatment work entered into within the state. If the bond is for both plumbing work 
29.26 	and subsurface sewage treatment work, the bond must comply with the requirements of 
29.27 	this section and section 115.56, subdivision 2, paragraph (e). The bond shall be for the 
29.28 	benefit of persons injured or suffering financial loss by reason of failure to comply with the 
29.29 	requirements of the State Plumbing Code and, if the bond is for both plumbing work and 
29.30 	subsurface sewage treatment work, financial loss by reason of failure to comply with the 
29.31 	requirements of sections 115.55 and 115.56. The bond shall be filed with the commissioner 
29.32 	and shall be written by a corporate surety licensed to do business in the state.
29.33 	In addition, as a condition of licensing, each contractor (c) Each person who 
29.34 	performs or offers to perform plumbing work within the state shall have and maintain in 
29.35 	effect public liability insurance, including products liability insurance with limits of at 
30.1 	least $50,000 per person and $100,000 per occurrence and property damage insurance 
30.2 	with limits of at least $10,000. The insurance shall be written by an insurer licensed to 
30.3 	do business in the state of Minnesota and. Each licensed master plumber person who 
30.4 	performs or offers to perform plumbing work within the state shall maintain on file 
30.5 	with the commissioner a certificate evidencing the insurance. In the event of a policy 
30.6 	cancellation, the insurer shall send written notice to the commissioner at the same time 
30.7 	that a cancellation request is received from or a notice is sent to the insured.

30.8 	Sec. 20. Minnesota Statutes 2010, section 326B.46, subdivision 3, is amended to read:
30.9 		Subd. 3.Bond and insurance exemption. If a master plumber or restricted master 
30.10 	plumber person who is in compliance with the bond and insurance requirements of 
30.11 	subdivision 2, employs a licensed plumber, the or an individual who has completed pipe 
30.12 	laying training as prescribed by the commissioner, that employee plumber shall not be 
30.13 	required to meet the bond and insurance requirements of subdivision 2. An individual who 
30.14 	is an employee working on the maintenance and repair of plumbing equipment, apparatus, 
30.15 	or facilities owned or leased by the individual's employer and which is within the limits of 
30.16 	property owned or leased, and operated or maintained by the individual's employer, shall 
30.17 	not be required to meet the bond and insurance requirements of subdivision 2.

30.18 	Sec. 21. Minnesota Statutes 2010, section 326B.47, subdivision 1, is amended to read:
30.19 		Subdivision 1.Registration; supervision; records. (a) All unlicensed individuals, 
30.20 	other than plumber's apprentices and individuals who have completed pipe laying training 
30.21 	as prescribed by the commissioner, must be registered under subdivision 3.
30.22 	(b) A plumber's apprentice or registered unlicensed individual is authorized to 
30.23 	assist in the installation of plumbing only while under the direct supervision of a master, 
30.24 	restricted master, journeyman, or restricted journeyman plumber. The master, restricted 
30.25 	master, journeyman, or restricted journeyman plumber is responsible for ensuring that all 
30.26 	plumbing work performed by the plumber's apprentice or registered unlicensed individual 
30.27 	complies with the plumbing code. The supervising master, restricted master, journeyman, 
30.28 	or restricted journeyman must be licensed and must be employed by the same employer 
30.29 	as the plumber's apprentice or registered unlicensed individual. Licensed individuals 
30.30 	shall not permit plumber's apprentices or registered unlicensed individuals to perform 
30.31 	plumbing work except under the direct supervision of an individual actually licensed to 
30.32 	perform such work. Plumber's apprentices and registered unlicensed individuals shall not 
30.33 	supervise the performance of plumbing work or make assignments of plumbing work 
30.34 	to unlicensed individuals.
31.1 	(c) Contractors employing plumber's apprentices or registered unlicensed individuals 
31.2 	to perform plumbing work shall maintain records establishing compliance with this 
31.3 	subdivision that shall identify all plumber's apprentices and registered unlicensed 
31.4 	individuals performing plumbing work, and shall permit the department to examine and 
31.5 	copy all such records.

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

31.16 	Sec. 23. Minnesota Statutes 2010, section 326B.49, subdivision 1, is amended to read:
31.17 		Subdivision 1.Application, examination, and license fees. (a) Applications for 
31.18 	master and journeyman plumber's licenses shall be made to the commissioner, with 
31.19 	all fees required by section 326B.092. Unless the applicant is entitled to a renewal, 
31.20 	the applicant shall be licensed by the commissioner only after passing a satisfactory 
31.21 	examination developed and administered by the commissioner, based upon rules adopted 
31.22 	by the Plumbing Board, showing fitness.
31.23 	(b) All initial journeyman plumber's licenses shall be effective for more than one 
31.24 	calendar year and shall expire on December 31 of the year after the year in which the 
31.25 	application is made. All master plumber's licenses shall expire on December 31 of each 
31.26 	even-numbered year after issuance or renewal. The commissioner shall in a manner 
31.27 	determined by the commissioner, without the need for any rulemaking under chapter 14, 
31.28 	phase in the renewal of master and journeyman plumber's licenses from one year to two 
31.29 	years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be 
31.30 	two-year licenses.
31.31 	(c) Applications for contractor licenses shall be made to the commissioner, with all 
31.32 	fees required by section 326B.092. All contractor licenses shall expire on December 31 of 
31.33 	each odd-numbered year after issuance or renewal.
32.1 	(d) For purposes of calculating license fees and renewal license fees required under 
32.2 	section 326B.092:
32.3 	(1) the following licenses shall be considered business licenses: plumbing contractor 
32.4 	and restricted plumbing contractor;
32.5 	(2) the following licenses shall be considered master licenses: master plumber and 
32.6 	restricted master plumber;
32.7 	(3) the following licenses shall be considered journeyman licenses: journeyman 
32.8 	plumber and restricted journeyman plumber; and
32.9 	(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3, 
32.10 	shall be considered an entry level license.
32.11 	(e) For each filing of a certificate of responsible person individual by an employer, 
32.12 	the fee is $100.
32.13 	(f) The commissioner shall charge each person giving bond under section 326B.46, 
32.14 	subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a 
32.15 	licensed contractor.

32.16 	Sec. 24. Minnesota Statutes 2010, section 326B.56, subdivision 1, is amended to read:
32.17 		Subdivision 1.Bonds. (a) As a condition of licensing, each water conditioning 
32.18 	contractor shall give and maintain a bond to the state as described in paragraph (b). 
32.19 	No applicant for a water conditioning contractor or installer license who maintains the 
32.20 	bond under paragraph (b) shall be otherwise required to meet the bond requirements of 
32.21 	any political subdivision.
32.22 	(b) Each bond given to the state under this subdivision shall be in the total sum of 
32.23 	$3,000 conditioned upon the faithful and lawful performance of all water conditioning 
32.24 	installation or servicing done within the state. The bond shall be for the benefit of 
32.25 	persons suffering injuries or damages due to the work. The bond shall be filed with the 
32.26 	commissioner and shall be written by a corporate surety licensed to do business in this 
32.27 	state. The bond must remain in effect at all times while the application is pending and 
32.28 	while the license is in effect.

32.29 	Sec. 25. Minnesota Statutes 2010, section 326B.58, is amended to read:
32.30 	326B.58 FEES; RENEWAL.
32.31 	(a) Each initial water conditioning master and water conditioning journeyman 
32.32 	license shall be effective for more than one calendar year and shall expire on December 31 
32.33 	of the year after the year in which the application is made.
33.1 	(b) The commissioner shall in a manner determined by the commissioner, without 
33.2 	the need for any rulemaking under chapter 14, phase in the renewal of water conditioning 
33.3 	master and journeyman licenses from one year to two years. By June 30, 2011, all 
33.4 	renewed water conditioning contractor and installer licenses shall be two-year licenses. 
33.5 	The Plumbing Board may by rule prescribe for the expiration and renewal of licenses.
33.6 	(c) All water conditioning contractor licenses shall expire on December 31 of the 
33.7 	year after issuance or renewal.
33.8 	(d) For purposes of calculating license fees and renewal fees required under section 
33.9 	326B.092:
33.10 	(1) a water conditioning journeyman license shall be considered a journeyman 
33.11 	license;
33.12 	(2) a water conditioning master license shall be considered a master license; and
33.13 	(3) a water conditioning contractor license shall be considered a business license.

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

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

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

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

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

34.6 	Sec. 31. Minnesota Statutes 2010, section 326B.821, subdivision 5, is amended to read:
34.7 		Subd. 5.Content. (a) Continuing education consists of approved courses that 
34.8 	impart appropriate and related knowledge in the residential construction industry regulated 
34.9 	industries pursuant to sections 326B.802 to 326B.885 this chapter and other relevant
34.10 	applicable federal and state laws, rules, and regulations. Courses may include relevant 
34.11 	materials that are included in licensing exams subject to the limitations imposed in 
34.12 	subdivision 11. The burden of demonstrating that courses impart appropriate and related 
34.13 	knowledge is upon the person seeking approval or credit.
34.14 	(b) Except as required for Internet continuing education, course examinations will 
34.15 	not be required for continuing education courses unless they are required by the sponsor.
34.16 	(c) Textbooks are not required to be used for continuing education courses. If 
34.17 	textbooks are not used as part of the course, the sponsor must provide students with a 
34.18 	syllabus containing, at a minimum, the course title, the times and dates of the course 
34.19 	offering, the name, address, and telephone number of the course sponsor and, the name 
34.20 	and affiliation of the instructor, and a detailed outline of the subject materials to be 
34.21 	covered. Any written or printed material given to students must be of readable quality and 
34.22 	contain accurate and current information.
34.23 	(d) Upon completion of an approved course, licensees shall earn one hour of 
34.24 	continuing education credit for each classroom hour approved by the commissioner. One 
34.25 	credit hour of continuing education is equivalent to 50 minutes of educational content.
34.26 	Each continuing education course must be attended in its entirety in order to receive credit 
34.27 	for the number of approved hours. Courses may be approved for full or partial credit, 
34.28 	and for more than one regulated industry.
34.29 	(e) Continuing education credit in an approved course shall be awarded to presenting 
34.30 	instructors on the basis of one credit for each hour of preparation for the duration of the 
34.31 	initial presentation. Continuing education credit may not be earned if the licensee has 
34.32 	previously obtained credit for the same course as a licensee or as an instructor within the 
34.33 	three years immediately prior credits for completion of an approved course may only be 
34.34 	used once for renewal of a specific license.
34.35 	(e)(f) Courses will be approved using the following guidelines:
35.1 	(1) course content must demonstrate significant intellectual or practical content and 
35.2 	deal with matters directly related to the practice of residential construction in the regulated 
35.3 	industry, workforce safety, or the business of running a residential construction company
35.4 	in the regulated industry. Courses may also address the professional responsibility or 
35.5 	ethical obligations of residential contractors to homeowners and suppliers a licensee 
35.6 	related to work in the regulated industry;
35.7 	(2) the following courses may be automatically approved if they are specifically 
35.8 	designed for the residential construction regulated industry and are in compliance with 
35.9 	paragraph (f) (g):
35.10 	(i) courses approved by the Minnesota Board of Continuing Legal Education; or
35.11 	(ii) courses approved by the International Code Council, National Association of 
35.12 	Home Building, or other nationally recognized professional organization of the residential 
35.13 	construction regulated industry; and
35.14 	(3) courses must be presented and attended in a suitable classroom or construction 
35.15 	setting, except for Internet education courses which must meet the requirements of 
35.16 	subdivision 5a. Courses presented via video recording, simultaneous broadcast, or 
35.17 	teleconference may be approved provided the sponsor is available at all times during the 
35.18 	presentation, except for Internet education courses which must meet the requirements 
35.19 	of subdivision 5a.
35.20 	(f)(g) The following courses will not be approved for credit:
35.21 	(1) courses designed solely to prepare students for a license examination;
35.22 	(2) courses in mechanical office skills, including typing, speed reading, or other 
35.23 	machines or equipment. Computer courses are allowed, if appropriate and related to the 
35.24 	residential construction regulated industry;
35.25 	(3) courses in sales promotion, including meetings held in conjunction with the 
35.26 	general business of the licensee;
35.27 	(4) courses in motivation, salesmanship, psychology, or personal time management;
35.28 	(5) courses that are primarily intended to impart knowledge of specific products of 
35.29 	specific companies, if the use of the product or products relates to the sales promotion 
35.30 	or marketing of one or more of the products discussed; or
35.31 	(6) courses where any of the educational content of the course is the State Building 
35.32 	Code that include code provisions that have not been adopted into the State Building 
35.33 	Code unless the course materials clarify whether or notthat the code provisions have 
35.34 	been officially adopted into a future version of the State Building Code and the effective 
35.35 	date of enforcement, if applicable.

36.1 	Sec. 32. Minnesota Statutes 2010, section 326B.821, subdivision 5a, is amended to 
36.2 	read:
36.3 		Subd. 5a.Internet continuing education. (a) Minnesota state colleges and 
36.4 	universities that are accredited to provide Internet education by the Higher Learning 
36.5 	Commission are exempt from the requirements of this subdivision.
36.6 	(b) The design and delivery of an Internet continuing education course must be 
36.7 	approved by the International Distance Education Certification Center (IDECC) before 
36.8 	the course is submitted for the commissioner's approval. The IDECC approval must 
36.9 	accompany the course submitted.
36.10 	(b)(c) An Internet continuing education course must:
36.11 	(1) specify the minimum computer system requirements;
36.12 	(2) provide encryption that ensures that all personal information, including the 
36.13 	student's name, address, and credit card number, cannot be read as it passes across the 
36.14 	Internet;
36.15 	(3) include technology to guarantee seat time;
36.16 	(4) include a high level of interactivity;
36.17 	(5) include graphics that reinforce the content;
36.18 	(6) include the ability for the student to contact an instructor or course sponsor 
36.19 	within a reasonable amount of time;
36.20 	(7) include the ability for the student to get technical support within a reasonable 
36.21 	amount of time;
36.22 	(8) include a statement that the student's information will not be sold or distributed 
36.23 	to any third party without prior written consent of the student. Taking the course does not 
36.24 	constitute consent;
36.25 	(9) be available 24 hours a day, seven days a week, excluding minimal downtime 
36.26 	for updating and administration, except that this provision does not apply to live courses 
36.27 	taught by an actual instructor and delivered over the Internet;
36.28 	(10) provide viewing access to the online course at all times to the commissioner, 
36.29 	excluding minimal downtime for updating and administration;
36.30 	(11) include a process to authenticate the student's identity;
36.31 	(12) inform the student and the commissioner how long after its purchase a course 
36.32 	will be accessible;
36.33 	(13) inform the student that license education credit will not be awarded for taking 
36.34 	the course after it loses its status as an approved course;
36.35 	(14) provide clear instructions on how to navigate through the course;
36.36 	(15) provide automatic bookmarking at any point in the course;
37.1 	(16) provide questions after each unit or chapter that must be answered before the 
37.2 	student can proceed to the next unit or chapter;
37.3 	(17) include a reinforcement response when a quiz question is answered correctly;
37.4 	(18) include a response when a quiz question is answered incorrectly;
37.5 	(19) include a final examination in which the student must correctly answer 70 
37.6 	percent of the questions;
37.7 	(20) allow the student to go back and review any unit at any time, except during the 
37.8 	final examination;
37.9 	(21) provide a course evaluation at the end of the course. At a minimum, the 
37.10 	evaluation must ask the student to report any difficulties caused by the online education 
37.11 	delivery method;
37.12 	(22) provide a completion certificate when the course and exam have been completed 
37.13 	and the provider has verified the completion. Electronic certificates are sufficient and shall 
37.14 	include the name of the provider, date and location of the course, educational program 
37.15 	identification that was provided by the department, hours of instruction or continuing 
37.16 	education hours, and licensee's or attendee's name and license, certification, or registration 
37.17 	number or the last four digits of the licensee's or attendee's Social Security number; and
37.18 	(23) allow the commissioner the ability to electronically review the class to 
37.19 	determine if credit can be approved.
37.20 	(c)(d) The final examination must be either an encrypted online examination or a 
37.21 	paper examination that is monitored by a proctor who certifies that the student took the 
37.22 	examination.

37.23 	Sec. 33. Minnesota Statutes 2010, section 326B.821, subdivision 6, is amended to read:
37.24 		Subd. 6.Course approval. (a) Courses must be approved by the commissioner 
37.25 	in advance and will be approved on the basis of the applicant's compliance with the 
37.26 	provisions of this section relating to continuing education in the regulated industries. The 
37.27 	commissioner shall make the final determination as to the approval and assignment of 
37.28 	credit hours for courses. Courses must be at least one hour in length.
37.29 	Licensees requesting credit for continuing education courses that have not been 
37.30 	previously approved by the commissioner shall, on a form prescribed by the commissioner, 
37.31 	submit an application for approval of continuing education credit accompanied by a 
37.32 	nonrefundable fee of $20 for each course to be reviewed. To be approved, courses must be 
37.33 	in compliance with the provisions of this section governing the types of courses that will 
37.34 	and will not be approved.
38.1 	Approval will not be granted for time spent on meals or other unrelated activities. 
38.2 	Breaks may not be accumulated in order to dismiss the class early. Classes shall not be 
38.3 	offered by a provider to any one student for longer than eight hours in one day, excluding 
38.4 	meal breaks.
38.5 	(b) Application for course approval must be submitted on a form approved by the 
38.6 	commissioner at least 30 days before the course offering.
38.7 	(c) Approval must be granted for a subsequent offering of identical continuing 
38.8 	education courses without requiring a new application if a notice of the subsequent 
38.9 	offering is filed with the commissioner at least 30 days in advance of the date the course is 
38.10 	to be held. The commissioner shall deny future offerings of courses if they are found not 
38.11 	to be in compliance with the laws relating to course approval.

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

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

38.29 	Sec. 36. Minnesota Statutes 2010, section 326B.821, subdivision 9, is amended to read:
38.30 		Subd. 9.Responsibilities. A sponsor is responsible for:
38.31 	(1) ensuring compliance with all laws and rules relating to continuing educational 
38.32 	offerings governed by the commissioner;
39.1 	(2) ensuring that students are provided with current and accurate information relating 
39.2 	to the laws and rules governing their licensed activity the regulated industry;
39.3 	(3) supervising and evaluating courses and instructors. Supervision includes 
39.4 	ensuring that all areas of the curriculum are addressed without redundancy and that 
39.5 	continuity is present throughout the entire course;
39.6 	(4) ensuring that instructors are qualified to teach the course offering;
39.7 	(5) furnishing the commissioner, upon request, with copies of course and instructor
39.8 	evaluations and. Evaluations must be completed by students at the time the course is 
39.9 	offered;
39.10 	(6) furnishing the commissioner, upon request, with copies of the qualifications of 
39.11 	instructors. Evaluations must be completed by students at the time the course is offered 
39.12 	and by sponsors within five days after the course offering;
39.13 	(6)(7) investigating complaints related to course offerings or instructors. A copy 
39.14 	of the written complaint must be sent to the commissioner within ten days of receipt of 
39.15 	the complaint and a copy of the complaint resolution must be sent not more than ten 
39.16 	days after resolution is reached;
39.17 	(7)(8) maintaining accurate records relating to course offerings, instructors, tests 
39.18 	taken by students if required, and student attendance for a period of three years from the 
39.19 	date on which the course was completed. These records must be made available to the 
39.20 	commissioner upon request. In the event the sponsor ceases operations before termination 
39.21 	of the sponsor application, the sponsor must provide to the commissioner digital copies of 
39.22 	all course and attendance records of courses held for the previous three years;
39.23 	(8)(9) attending workshops or instructional programs as reasonably required by 
39.24 	the commissioner;
39.25 	(9)(10) providing course completion certificates within ten days of, but not before, 
39.26 	completion of the entire course. A sponsor may require payment of the course tuition as a 
39.27 	condition of receiving the course completion certificate. Course completion certificates 
39.28 	must be completed in their entirety. Course completion certificates mustand shall contain 
39.29 	the following:
39.30 	(i) the statement: "If you have any comments about this course offering, please mail 
39.31 	them to the Minnesota Department of Labor and Industry.";
39.32 	(ii) the current address of the department must be included. A sponsor may require 
39.33 	payment of the course tuition as a condition for receiving the course completion certificate, 
39.34 	name of the provider, date and location of the course, educational program identification 
39.35 	provided by the department, and hours of instruction or continuing education hours; and
40.1 	(iii) the licensee's or attendee's name and license, certificate, or registration number 
40.2 	or the last four digits of the licensee's or attendee's Social Security number; and
40.3 	(10)(11) notifying the commissioner in writing within ten days of any change in the 
40.4 	information in an application for approval on file with the commissioner.

40.5 	Sec. 37. Minnesota Statutes 2010, section 326B.821, subdivision 10, is amended to 
40.6 	read:
40.7 		Subd. 10.Instructors. (a) Each continuing education course shall have an instructor 
40.8 	who is qualified by education, training, or experience to ensure competent instruction. 
40.9 	Failure to have only qualified instructors teach at an approved course offering will result in 
40.10 	loss of course approval. Sponsors are responsible to ensure that an instructor is qualified 
40.11 	to teach the course offering.
40.12 	(b) Qualified continuing education instructors must have one of the following 
40.13 	qualifications:
40.14 	(1) four years' practical experience in the subject area being taught;
40.15 	(2) a college or graduate degree in the subject area being taught;
40.16 	(3) direct experience in the development of laws, rules, or regulations related to the 
40.17 	residential construction regulated industry; or
40.18 	(4) demonstrated expertise in the subject area being taught. Instructors providing 
40.19 	instruction related to electricity, plumbing, or high pressure piping systems must comply 
40.20 	with all applicable continuing education rules adopted by the Board of Electricity, the 
40.21 	Plumbing Board, or the Board of High Pressure Piping Systems.
40.22 	(c) ApprovedQualified continuing education instructors are responsible for:
40.23 	(1) compliance with all laws and rules relating to continuing education;
40.24 	(2) providing students with current and accurate information;
40.25 	(3) maintaining an atmosphere conducive to learning in the classroom;
40.26 	(4) verifying attendance of students, and certifying course completion;
40.27 	(5) providing assistance to students and responding to questions relating to course 
40.28 	materials; and
40.29 	(6) attending the workshops or instructional programs that are required by the 
40.30 	commissioner.

40.31 	Sec. 38. Minnesota Statutes 2010, section 326B.821, subdivision 11, is amended to 
40.32 	read:
40.33 		Subd. 11.Prohibited practices for sponsors and instructors. (a) In connection 
40.34 	with an approved continuing education course, sponsors and instructors shall not:
41.1 	(1) recommend or, promote, or disparage the specific services, products, processes, 
41.2 	procedures, or practices of a particular business person in the regulated industry;
41.3 	(2) encourage or recruit individuals students to engage the services of, or become 
41.4 	associated with, a particular business;
41.5 	(3) use materials for the sole purpose of promoting a particular business;
41.6 	(4) require students to participate in other programs or services offered by an 
41.7 	instructor or sponsor;
41.8 	(5) attempt, either directly or indirectly, to discover questions or answers on an 
41.9 	examination for a license;
41.10 	(6) disseminate to any other person specific questions, problems, or information 
41.11 	known or believed to be included in licensing examinations;
41.12 	(7) misrepresent any information submitted to the commissioner;
41.13 	(8) fail to reasonably cover, or ensure coverage of, all points, issues, and concepts 
41.14 	contained in the course outline approved by the commissioner during the approved 
41.15 	instruction; or
41.16 	(9) issue inaccurate course completion certificates.
41.17 	(b) Sponsors shall notify the commissioner within ten days of a felony or gross 
41.18 	misdemeanor conviction or of disciplinary action taken against an occupational or 
41.19 	professional license held by the sponsor or an instructor teaching an approved course. The 
41.20 	notification conviction or disciplinary action shall be grounds for the commissioner to 
41.21 	withdraw the approval of the sponsor and to disallow the use of the sponsor or instructor.

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

41.31 	Sec. 40. Minnesota Statutes 2010, section 326B.821, subdivision 15, is amended to 
41.32 	read:
41.33 		Subd. 15.Advertising courses. (a) Paragraphs (b) to (g) govern the advertising 
41.34 	of continuing education courses.
42.1 	(b) Advertising must be truthful and not deceptive or misleading. Courses may 
42.2 	not be advertised as approved for continuing education credit unless approval has been 
42.3 	granted in writing by the commissioner.
42.4 	(c) Once a course is approved, all advertisement, pamphlet, circular, or other similar 
42.5 	materials pertaining to an approved course circulated or distributed in this state, must 
42.6 	prominently display the following statement:
42.7 	"This course has been approved by the Minnesota Department of Labor and Industry 
42.8 	for ....... (approved number of hours) hours for residential contractor ....... (regulated 
42.9 	industry) continuing education."
42.10 	(d) Advertising of approved courses must be clearly distinguishable from the 
42.11 	advertisement of other nonapproved courses and services.
42.12 	(e) Continuing education courses may not be advertised before approval unless the 
42.13 	course is described in any advertising as "approval pending." The sponsor must verbally 
42.14 	notify licensees students before commencement of the course if the course has been 
42.15 	denied credit, has not been approved for credit, or has only been approved for partial 
42.16 	credit by the commissioner.
42.17 	(f) The number of hours for which a course has been approved must be prominently 
42.18 	displayed on an advertisement for the course. If the course offering is longer than the 
42.19 	number of hours of credit to be given, it must be clear that credit is not earned for the 
42.20 	entire course.
42.21 	(g) The course approval number must not be included in any advertisement.

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

42.29 	Sec. 42. Minnesota Statutes 2010, section 326B.821, subdivision 18, is amended to 
42.30 	read:
42.31 		Subd. 18.Falsification of reports or certificates. A licensee, its qualified person
42.32 	qualifying individual, or an applicant found to have falsified an education report or 
42.33 	certificate to the commissioner shall be considered to have violated the laws relating to 
42.34 	the regulated industry for which the person has a license and shall be subject to censure, 
43.1 	limitation, condition, suspension, or revocation of the license or denial of the application 
43.2 	for licensure the enforcement provisions of section 326B.082.
43.3 	The commissioner reserves the right to audit a licensee's continuing education 
43.4 	records.

43.5 	Sec. 43. Minnesota Statutes 2010, section 326B.821, subdivision 19, is amended to 
43.6 	read:
43.7 		Subd. 19.Waivers and extensions. If a licensee provides documentation to the 
43.8 	commissioner that the licensee or its qualifying person is unable, and will continue to be 
43.9 	unable, to attend actual classroom course work because of a physical disability, medical 
43.10 	condition, or similar reason, attendance at continuing education courses shall be waived 
43.11 	for a period not to exceed one year. The commissioner shall require that the licensee or 
43.12 	its qualifying person satisfactorily complete a self-study program to include reading a 
43.13 	sufficient number of textbooks, or listening to a sufficient number of tapes, related to the 
43.14 	residential building contractor industry, as would be necessary for the licensee to satisfy 
43.15 	continuing educational credit hour needs. The commissioner shall award the licensee 
43.16 	credit hours for a self-study program by determining how many credit hours would 
43.17 	be granted to a classroom course involving the same material and giving the licensee 
43.18 	the same number of credit hours under this section. The licensee may apply each year 
43.19 	for a new waiver upon the same terms and conditions as were necessary to secure the 
43.20 	original waiver, and must demonstrate that in subsequent years, the licensee was unable to 
43.21 	complete actual classroom course work. The commissioner may request documentation 
43.22 	of the condition upon which the request for waiver is based as is necessary to satisfy 
43.23 	the commissioner of the existence of the condition and that the condition does preclude 
43.24 	attendance at continuing education courses.
43.25 	Upon written proof demonstrating a medical hardship, the commissioner shall 
43.26 	extend, for up to 90 days, the time period during which the continuing education must be 
43.27 	successfully completed. Loss of income from either attendance at courses or cancellation 
43.28 	of a license is not a bona fide financial hardship. Requests for extensions must be 
43.29 	submitted to the commissioner in writing no later than 60 days before the education is 
43.30 	due and must include an explanation with verification of the hardship, plus verification of 
43.31 	enrollment at an approved course of study on or before the extension period expires.

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

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

44.9 	Sec. 46. Minnesota Statutes 2010, section 326B.821, subdivision 23, is amended to 
44.10 	read:
44.11 		Subd. 23.Continuing education fees. The following fees shall be paid to the 
44.12 	commissioner:
44.13 	(1) initial course approval, $20 for each hour or fraction of one hour of continuing 
44.14 	education course approval sought. Initial course approval expires on the last day of the 
44.15 	24th 36th month after the course is approved;
44.16 	(2) renewal of course approval, $20 per course. Renewal of course approval expires 
44.17 	on the last day of the 24th month after the course is renewed;
44.18 	(3)(2) initial sponsor approval, $100. Initial sponsor approval expires on the last 
44.19 	day of the 24th month after the sponsor is approved; and
44.20 	(4)(3) renewal of sponsor approval, $20 $100. Renewal of sponsor approval expires 
44.21 	on the last day of the 24th month after the sponsor is renewed.

44.22 	Sec. 47. Minnesota Statutes 2010, section 326B.865, is amended to read:
44.23 	326B.865 SIGN CONTRACTOR; BOND.
44.24 	(a) A sign contractor may post a compliance bond with the commissioner, 
44.25 	conditioned that the sign contractor shall faithfully perform duties and comply with laws, 
44.26 	ordinances, rules, and contracts entered into for the installation of signs. The bond must 
44.27 	be renewed biennially and maintained for so long as determined by the commissioner. 
44.28 	The aggregate liability of the surety on the bond to any and all persons, regardless of the 
44.29 	number of claims made against the bond, may not exceed the annual amount of the bond. 
44.30 	The bond may be canceled as to future liability by the surety upon 30 days' written notice 
44.31 	mailed to the commissioner by United States mail.
45.1 	(b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a 
45.2 	local unit of government that requires sign contractors to post a compliance bond. The 
45.3 	bond is in lieu of any compliance bond required by a local unit of government.
45.4 	(c) For purposes of this section, "sign" means a device, structure, fixture, or 
45.5 	placard using graphics, symbols, or written copy that is erected on the premises of an 
45.6 	establishment including the name of the establishment or identifying the merchandise, 
45.7 	services, activities, or entertainment available on the premises.
45.8 	(d) Each person giving bond under this section shall pay a biennial bond filing fee of 
45.9 	$100 to the commissioner of labor and industry. 

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

45.11 	Sec. 48. Minnesota Statutes 2010, section 326B.89, subdivision 6, is amended to read:
45.12 		Subd. 6.Verified application. To be eligible for compensation from the fund, an 
45.13 	owner or lessee shall serve on the commissioner a verified application for compensation 
45.14 	on a form approved by the commissioner. The application shall verify the following 
45.15 	information:
45.16 	(1) the specific grounds upon which the owner or lessee seeks to recover from 
45.17 	the fund:
45.18 	(2) that the owner or the lessee has obtained a final judgment in a court of competent 
45.19 	jurisdiction against a licensee licensed under section 326B.83;
45.20 	(3) that the final judgment was obtained against the licensee on the grounds 
45.21 	of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of 
45.22 	performance that arose directly out of a contract directly between the licensee and the 
45.23 	homeowner or lessee that was entered into prior to the cause of action and that occurred 
45.24 	when the licensee was licensed and performing any of the special skills enumerated under 
45.25 	section 326B.802, subdivision 15;
45.26 	(4) the amount of the owner's or the lessee's actual and direct out-of-pocket loss on 
45.27 	the owner's residential real estate, on residential real estate leased by the lessee, or on new 
45.28 	residential real estate that has never been occupied or that was occupied by the licensee 
45.29 	for less than one year prior to purchase by the owner;
45.30 	(5) that the residential real estate is located in Minnesota;
45.31 	(6) that the owner or the lessee is not the spouse of the licensee or the personal 
45.32 	representative of the licensee;
45.33 	(7) the amount of the final judgment, any amount paid in satisfaction of the final 
45.34 	judgment, and the amount owing on the final judgment as of the date of the verified 
45.35 	application;
46.1 	(8) that the owner or lessee has diligently pursued remedies against all the judgment 
46.2 	debtors and all other persons liable to the judgment debtor in the contract for which the 
46.3 	owner or lessee seeks recovery from the fund; and
46.4 	(9) that the verified application is being served within two years after the judgment 
46.5 	became final.
46.6 	The verified application must include documents evidencing the amount of the 
46.7 	owner's or the lessee's actual and direct out-of-pocket loss. The owner's and the lessee's 
46.8 	actual and direct out-of-pocket loss shall not include any attorney fees, litigation costs 
46.9 	or fees, interest on the loss, and interest on the final judgment obtained as a result of the 
46.10 	loss or any costs not directly related to the value difference between what was contracted 
46.11 	for and what was provided. Any amount paid in satisfaction of the final judgment shall 
46.12 	be applied to the owner's or lessee's actual and direct out-of-pocket loss. An owner or 
46.13 	lessee may serve a verified application regardless of whether the final judgment has been 
46.14 	discharged by a bankruptcy court. A judgment issued by a court is final if all proceedings 
46.15 	on the judgment have either been pursued and concluded or been forgone, including all 
46.16 	reviews and appeals. For purposes of this section, owners who are joint tenants or tenants 
46.17 	in common are deemed to be a single owner. For purposes of this section, owners and 
46.18 	lessees eligible for payment of compensation from the fund shall not include government 
46.19 	agencies, political subdivisions, financial institutions, and any other entity that purchases, 
46.20 	guarantees, or insures a loan secured by real estate.

46.21 	Sec. 49. Minnesota Statutes 2010, section 326B.89, subdivision 8, is amended to read:
46.22 		Subd. 8.Administrative hearing. If an owner or a lessee timely serves a request 
46.23 	for hearing under subdivision 7, the commissioner shall request that an administrative law 
46.24 	judge be assigned and that a hearing be conducted under the contested case provisions of 
46.25 	chapter 14 within 45 days after the commissioner received the request for hearing, unless 
46.26 	the parties agree to a later date. The commissioner must notify the owner or lessee of the 
46.27 	time and place of the hearing at least 15 days before the hearing. Upon petition of the 
46.28 	commissioner, the administrative law judge shall continue the hearing up to 60 days and 
46.29 	upon a showing of good cause may continue the hearing for such additional period as the 
46.30 	administrative law judge deems appropriate.
46.31 	At the hearing the owner or the lessee shall have the burden of proving by substantial 
46.32 	evidence under subdivision 6, clauses (1) to (8). Whenever an applicant's judgment 
46.33 	is by default, stipulation, or consent, or whenever the action against the licensee was 
46.34 	defended by a trustee in bankruptcy, the applicant shall have the burden of proving the 
46.35 	cause of action for fraudulent, deceptive, or dishonest practices, conversion of funds, or 
47.1 	failure of performance. Otherwise, the judgment shall create a rebuttable presumption 
47.2 	of the fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of 
47.3 	performance. This presumption affects the burden of producing evidence.
47.4 	The administrative law judge shall issue findings of fact, conclusions of law, and 
47.5 	order. If the administrative law judge finds that compensation should be paid to the owner 
47.6 	or the lessee, the administrative law judge shall order the commissioner to make payment 
47.7 	from the fund of the amount it finds to be payable pursuant to the provisions of and in 
47.8 	accordance with the limitations contained in this section. The order of the administrative 
47.9 	law judge shall constitute the final decision of the agency in the contested case. The 
47.10 	commissioner or the owner or lessee may seek judicial review of the administrative law 
47.11 	judge's findings of fact, conclusions of law, and order shall be in accordance with sections 
47.12 	14.63 to 14.69.

47.13 	Sec. 50. Minnesota Statutes 2010, section 327.32, subdivision 1a, is amended to read:
47.14 		Subd. 1a.Requirement; used manufactured homes. No person shall sell or 
47.15 	offer for sale in this state any used manufactured home manufactured after June 14, 
47.16 	1976, or install for occupancy any used manufactured home manufactured after June 
47.17 	14, 1976, unless the used manufactured home complies with the Notice of Compliance 
47.18 	Form as provided in this subdivision. If manufactured after June 14, 1976, the home 
47.19 	must bear a label as required by the secretary. The Notice of Compliance Form shall be 
47.20 	signed by the seller and purchaser indicating which party is responsible for either making 
47.21 	or paying for any necessary corrections prior to the sale and transferring ownership of 
47.22 	the manufactured home.
47.23 	The Notice of Compliance Form shall be substantially in the following form:
47.24 	"Notice of Compliance Form as required in Minnesota Statutes, 
47.25 	section 327.32, subdivision 1
47.26 	This notice must be completed and signed by the purchaser(s) and the seller(s) of the 
47.27 	used manufactured home described in the purchase agreement and on the bottom of this 
47.28 	notice before the parties transfer ownership of a used manufactured home constructed 
47.29 	after June 14, 1976.
47.30 	Electric ranges and clothes dryers must have required four-conductor cords and plugs. For 
47.31 	the purpose of complying with the requirements of section 327B.06, a licensed retailer or 
47.32 	limited retailer shall retain at least one copy of the form required under this subdivision.

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

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

48.10	Complies ..........
	Correction required ..........
	
48.11	Initialed by Responsible Party: Buyer ..........
	Seller ..........
	
48.12 	Smoke alarms are required to be installed and operational in accordance with Code of 
48.13 	Federal Regulations, title 24, section 3280.208.

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

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

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

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

49.1	Complies ..........
	Correction required ..........
	
49.2	Initialed by Responsible Party: Buyer ..........
	Seller ..........
	
49.3 	The home complies with the snowload and heat zone requirements for the state of 
49.4 	Minnesota as indicated by the data plate.

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

49.13	Signature of Purchaser(s) of Home
		
49.14	..............................date..............................
	..............................date..............................
	
49.15	...................................................................
	...................................................................
	
49.16
49.17	Print name as appears on purchase 
agreement
	Print name as appears on purchase 
agreement
	
49.18	Signature of Seller(s) of Home
		
49.19	..............................date..............................
	..............................date..............................
	
49.20	...................................................................
	...................................................................
	
49.21	Print name and license number, if applicable
	Print name and license number, if applicable
	
49.22	(Street address of home at time of sale)
		
49.23	................................................................................................................................
	
49.24	(City/State/Zip).......................................................................................................
	
49.25	Name of manufacturer of home............................................................................
	
49.26	Model and year.....................................................................................................
	
49.27	Serial number........................................................................................................"

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

49.29 	Sec. 51. Minnesota Statutes 2010, section 327.32, subdivision 1b, is amended to read:
49.30 		Subd. 1b.Alternative design plan. An alternative frost-free design slab for a new 
49.31 	or used manufactured home that is submitted to the local building official, third-party 
49.32 	inspector, or the department, stamped by a licensed professional engineer or architect, and 
49.33 	is as being in compliance with either the federal installation standards in effect at the date 
49.34 	of manufacture, the manufacturer's installation manual,  or the Minnesota State Building 
49.35 	Code, when applicable, shall be issued a permit by the department within ten days of 
49.36 	being received by the approving authority.

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

50.2 	Sec. 52. Minnesota Statutes 2010, section 327.32, subdivision 1e, is amended to read:
50.3 		Subd. 1e.Reinstallation requirements for single-section used manufactured 
50.4 	homes. (a) All single-section used manufactured homes reinstalled less than 24 months 
50.5 	from the date of installation by the first purchaser must be reinstalled in compliance with 
50.6 	subdivision 1c. All single-section used manufactured homes reinstalled more than 24 
50.7 	months from the date of installation by the first purchaser may be reinstalled without 
50.8 	a frost-protected foundation if the home is reinstalled in compliance with Minnesota 
50.9 	Rules, chapter 1350, for above frost-line installations and the notice requirement of 
50.10 	subdivision 1f is complied with by the seller and the purchaser of the single-section used 
50.11 	manufactured home.
50.12 	(b) The installer shall affix an installation seal issued by the department permitting 
50.13 	authority to the outside of the home as required by the Minnesota State Building Code. 
50.14 	The certificate of installation issued by the installer of record shall clearly state that the 
50.15 	home has been reinstalled with an above frost-line foundation. Fees for inspection of a 
50.16 	reinstallation and for issuance of reinstallation seals shall follow the requirements of 
50.17 	sections 326B.802 to 326B.885. Fees for review of plans, specifications, and on-site 
50.18 	inspections shall be those as specified in section 326B.153, subdivision 1, paragraph 
50.19 	(c). Whenever an installation certificate for an above frost-line installation is issued to a 
50.20 	single-section used manufactured home being listed for sale, the purchase agreement must 
50.21 	disclose that the home is installed on a nonfrost-protected foundation and recommend that 
50.22 	the purchaser have the home inspected to determine the effects of frost on the home.

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

50.24 	Sec. 53. Minnesota Statutes 2010, section 327.33, subdivision 1, is amended to read:
50.25 		Subdivision 1.Inspections. The commissioner shall, through the department's 
50.26 	inspectors or through a designated recognized inspection service acting as authorized 
50.27 	representative of the commissioner perform sufficient inspections of manufacturing 
50.28 	premises and manufactured homes to ensure compliance with sections 327.31 to 327.35, 
50.29 	except that municipalities which have adopted the State Building Code may provide 
50.30 	inspection and plan review services in noncode areas of the state. The commissioner shall 
50.31 	have the exclusive right to conduct inspections, except for the inspections conducted or 
50.32 	authorized by the secretary. 

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

51.1 	Sec. 54. Minnesota Statutes 2010, section 327.33, subdivision 2, is amended to read:
51.2 		Subd. 2.Fees. The commissioner shall by rule establish reasonable fees for seals, 
51.3 	installation seals and inspections which are sufficient to cover all costs incurred in the 
51.4 	administration of sections 327.31 to 327.35. The commissioner shall also establish by 
51.5 	rule a monitoring inspection fee in an amount that will comply with the secretary's fee 
51.6 	distribution program. This monitoring inspection fee shall be an amount paid by the 
51.7 	manufacturer for each manufactured home produced in Minnesota. The monitoring 
51.8 	inspection fee shall be paid by the manufacturer to the secretary. The rules of the 
51.9 	fee distribution program require the secretary to distribute the fees collected from all 
51.10 	manufactured home manufacturers among states approved and conditionally approved 
51.11 	based on the number of new manufactured homes whose first location after leaving the 
51.12 	manufacturer is on the premises of a distributor, dealer or purchaser in that state. Fees 
51.13 	for inspections in areas that have not adopted the State Building Code must be equal to 
51.14 	the fees for inspections in code areas of the state. Third-party vendors may charge their 
51.15 	usual and normal charge for inspections.

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

51.17 	Sec. 55. REVISOR'S INSTRUCTION.
 51.18 	The revisor of statutes shall renumber each section of Minnesota Statutes listed in 
51.19 	column A with the number listed in column B. The revisor shall also make necessary 
51.20 	cross-reference changes consistent with the renumbering.

51.21		Column A
	Column B
	
51.22		326B.82, subd. 2
	326B.091, subd. 2a
	
51.23		326B.82, subd. 3
	326B.091, subd. 2b
	
51.24		326b.82, subd. 5
	326B.091, subd. 2c
	
51.25		326B.82, subd. 7
	326B.091, subd. 4a
	
51.26		326B.82, subd. 8
	326B.091, subd. 5a
	
51.27		326B.82, subd. 9
	326B.091, subd. 5c
	
51.28		326B.82, subd. 10
	326B.091, subd. 7
	
51.29		326B.821, subd. 4
	326B.0981, subd. 17
	
51.30		326B.821, subd. 5
	326B.0981, subd. 3
	
51.31		326B.821, subd. 5a
	326B.0981, subd. 4
	
51.32		326B.821, subd. 6
	326B.0981, subd. 5
	
51.33		326B.821, subd. 7
	326B.0981, subd. 6
	
51.34		326B.821, subd. 8
	326B.099, subd. 1
	
51.35		326B.821, subd. 9
	326B.099, subd. 2
	
51.36		326B.821, subd. 10
	326B.099, subd. 3
	
51.37		326B.821, subd. 11
	326B.099, subd. 4
	
52.1		326B.821, subd. 12
	326B.0981, subd. 7
	
52.2		326B.821, subd. 13
	326B.0981, subd. 8
	
52.3		326B.821, subd. 14
	326B.0981, subd. 9
	
52.4		326B.821, subd. 15
	326B.0981, subd. 10
	
52.5		326B.821, subd. 16
	326B.0981, subd. 11
	
52.6		326B.821, subd. 17
	326B.099, subd. 5
	
52.7		326B.821, subd. 18
	326B.0981, subd. 12
	
52.8		326B.821, subd. 19
	326B.0981, subd. 13
	
52.9		326B.821, subd. 20
	326B.0981, subd. 14
	
52.10		326B.821, subd. 22
	326B.0981, subd. 2
	
52.11		326B.821, subd. 23
	326B.0981, subd. 15
	
52.12		326B.821, subd. 24
	326B.0981, subd. 16

52.13 	Sec. 56.  REPEALER.
 52.14 	Minnesota Statutes 2010, sections 326B.82, subdivisions 4 and 6; and 326B.821, 
52.15 	subdivision 3, are repealed.

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