1.1A bill for an act1.2relating to economic development; modifying certain economic development, 1.3fees, and licensing provisions; modifying certain occupational continuing 1.4education requirements; clarifying and modifying regulation of medical gas 1.5system and manufactured home provisions; requiring reports; appropriating 1.6money for jobs, economic development, and housing purposes;amending 1.7Minnesota Statutes 2010, sections 116J.035, by adding a subdivision; 116L.3625; 1.8116L.62; 154.06; 154.065, subdivision 2; 154.08; 154.11, subdivision 1; 154.12; 1.9181.723, subdivision 5; 182.6553, subdivision 6; 268.18, subdivisions 2, 2b; 1.10268.199; 298.17; 326B.04, subdivision 2; 326B.091; 326B.098; 326B.13, 1.11subdivision 8; 326B.148, subdivision 1; 326B.42, subdivisions 8, 9, 10, by adding 1.12subdivisions; 326B.435, subdivision 2; 326B.438; 326B.46, subdivisions 1a, 1b, 1.132, 3; 326B.47, subdivisions 1, 3; 326B.49, subdivision 1; 326B.56, subdivision 1.141; 326B.58; 326B.82, subdivisions 2, 3, 7, 9; 326B.821, subdivisions 1, 5, 5a, 6, 1.157, 8, 9, 10, 11, 12, 15, 16, 18, 19, 20, 22, 23; 326B.865; 326B.89, subdivisions 1.166, 8; 327.32, subdivisions 1a, 1b, 1e, 1f, 7; 327.33, subdivision 2; 327C.095, 1.17subdivision 12; 341.321; Laws 2009, chapter 78, article 1, section 18; proposing 1.18coding for new law in Minnesota Statutes, chapter 326B; repealing Minnesota 1.19Statutes 2010, sections 326B.82, subdivisions 4, 6; 326B.821, subdivision 3.1.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.21ARTICLE 11.22JOBS, ECONOMIC DEVELOPMENT, AND HOUSING APPROPRIATIONS

1.231.24Section 1. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING APPROPRIATIONS.

1.25    The amounts shown in this section summarize direct appropriations, by fund, made 1.26in this article.

1.2720122013Total1.28General$80,090,000$77,758,000$157,848,0001.29Workforce Development14,151,00014,151,00028,302,0001.30Remediation700,000700,0001,400,0002.1Workers' Compensation 22,574,00022,574,00045,148,0002.2Total$117,515,000$115,183,000$232,698,000

2.3Sec. 2. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING.

2.4    The sums shown in the columns marked "Appropriations" are appropriated to the 2.5agencies and for the purposes specified in this article. The appropriations are from the 2.6general fund, or another named fund, and are available for the fiscal years indicated 2.7for each purpose. The figures "2012" and "2013" used in this article mean that the 2.8appropriations listed under them are available for the fiscal year ending June 30, 2012, or 2.9June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal 2.10year 2013. "The biennium" is fiscal years 2012 and 2013.

2.11APPROPRIATIONS2.12Available for the Year2.13Ending June 302.1420122013

2.152.16Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

2.17Subdivision 1.Total Appropriation$53,044,000$50,819,000

2.18Appropriations by Fund2.19201220132.20General38,850,00036,625,0002.21Remediation700,000700,0002.222.23Workforce Development13,494,00013,494,000

2.24The amounts that may be spent for each 2.25purpose are specified in the following 2.26subdivisions.

2.272.28Subd. 2.Business and Community Development9,166,0006,941,000

2.29Appropriations by Fund2.30General8,186,0005,961,0002.31Remediation700,000700,0002.322.33Workforce Development280,000280,000

2.34(a) $700,000 the first year and $700,000 the 2.35second year are from the remediation fund for 2.36contaminated site cleanup and development 3.1grants under Minnesota Statutes, section 3.2116J.554. This appropriation is available 3.3until expended.3.4(b) $970,000 the first year and $970,000 the 3.5second year are from the general fund for 3.6contaminated site cleanup and development 3.7grants under Minnesota Statutes, section 3.8116J.554.3.9(c) $1,086,000 the first year and $1,086,000 3.10the second year are from the general fund for 3.11the Minnesota Trade Office.3.12(d) $150,000 each year is from the general 3.13fund for a grant to WomenVenture for 3.14women's business development programs 3.15and for programs that encourage and assist 3.16women to enter nontraditional careers in the 3.17trades; manual and technical occupations; 3.18science, technology, engineering, and 3.19mathematics-related occupations; and green 3.20jobs. This appropriation may be matched 3.21dollar for dollar with any resources available 3.22from the federal government for these 3.23purposes with priority given to initiatives 3.24that have a goal of increasing by at least ten 3.25percent the number of women in occupations 3.26where women currently comprise less than 3.2725 percent of the workforce.3.28(e) $75,000 each year is from the general 3.29fund and $40,000 each year is from the 3.30workforce development fund for a grant to 3.31the Metropolitan Economic Development 3.32Association for continuing minority business 3.33development programs in the metropolitan 3.34area. This appropriation must be used for the 3.35sole purpose of providing free or reduced 4.1fee business consulting services to minority 4.2entrepreneurs and contractors.4.3(f)(1) $425,000 the first year is a onetime 4.4appropriation from the general fund for a 4.5grant to BioBusiness Alliance of Minnesota 4.6for bioscience business development 4.7programs to promote and position the state 4.8as a global leader in bioscience business 4.9activities. These funds may be used to create, 4.10recruit, retain, and expand biobusiness 4.11activity in Minnesota; implement the 4.12destination 2025 statewide plan; update 4.13a statewide assessment of the bioscience 4.14industry and the competitive position of 4.15Minnesota-based bioscience businesses 4.16relative to other states and other nations; 4.17and develop and implement business and 4.18scenario-planning models to create, recruit, 4.19retain, and expand biobusiness activity in 4.20Minnesota.4.21(2) The BioBusiness Alliance must report 4.22each year by February 15 to the committees 4.23of the house of representatives and the senate 4.24having jurisdiction over bioscience industry 4.25activity in Minnesota on the use of funds; 4.26the number of bioscience businesses and 4.27jobs created, recruited, retained, or expanded 4.28in the state since the last reporting period; 4.29the competitive position of the biobusiness 4.30industry; and utilization rates and results of 4.31the business and scenario-planning models 4.32and outcomes resulting from utilization of 4.33the business and scenario-planning models.4.34(g) $50,000 the first year is from the general 4.35fund for a grant to the Minnesota Inventors 5.1Congress, of which at least $5,000 must be 5.2used for youth inventors. This is a onetime 5.3appropriation.5.4(h)(1) $90,000 each year is from the 5.5workforce development fund for a grant 5.6under Minnesota Statutes, section 116J.421, 5.7to the Rural Policy and Development 5.8Center at St. Peter, Minnesota. The grant 5.9shall be used for research and policy 5.10analysis on emerging economic and social 5.11issues in rural Minnesota, to serve as a 5.12policy resource center for rural Minnesota 5.13communities, to encourage collaboration 5.14across higher education institutions, to 5.15provide interdisciplinary team approaches 5.16to research and problem-solving in rural 5.17communities, and to administer overall 5.18operations of the center.5.19(2) The grant shall be provided upon the 5.20condition that each state-appropriated 5.21dollar be matched with a nonstate dollar. 5.22Acceptable matching funds are nonstate 5.23contributions that the center has received and 5.24have not been used to match previous state 5.25grants. Any funds not spent the first year are 5.26available the second year.5.27(i)(1) $150,000 each year is appropriated 5.28from the workforce development fund for 5.29grants of $50,000 to eligible organizations 5.30each year to assist in the development of 5.31entrepreneurs and small businesses. Each 5.32state grant dollar must be matched with $1 5.33of nonstate funds. Any balance in the first 5.34year does not cancel but is available in the 5.35second year.6.1(2) Three grants must be awarded to 6.2continue or to develop a program. One 6.3grant must be awarded to the Riverbend 6.4Center for Entrepreneurial Facilitation 6.5in Blue Earth County, and two to other 6.6organizations serving Faribault and Martin 6.7Counties. Grant recipients must report to the 6.8commissioner by February 1 of each year 6.9that the organization receives a grant with the 6.10number of customers served; the number of 6.11businesses started, stabilized, or expanded; 6.12the number of jobs created and retained; and 6.13business success rates. The commissioner 6.14must report to the house of representatives 6.15and senate committees with jurisdiction 6.16over economic development finance on the 6.17effectiveness of these programs for assisting 6.18in the development of entrepreneurs and 6.19small businesses.6.20(j) $1,000,000 the first year is from the 6.21general fund for the Minnesota Investment 6.22Fund under Minnesota Statutes, section 6.23116J.8731. The appropriation is available 6.24until spent. This is a onetime appropriation 6.25and is not added to the agency's base.6.26(k) $750,000 the first year is from the general 6.27fund for the redevelopment account under 6.28Minnesota Statutes, section 116J.571. This 6.29is a onetime appropriation and is available 6.30until spent.

6.31Subd. 3.Workforce Development43,020,00043,020,000

6.32Appropriations by Fund6.33General29,806,00029,806,0006.346.35Workforce Development13,214,00013,214,000

7.1(a) $3,728,000 each year is from the general 7.2fund for the Minnesota job skills partnership 7.3program under Minnesota Statutes, sections 7.4116L.01 to 116L.17. If the appropriation for 7.5either year is insufficient, the appropriation 7.6for the other year is available. This 7.7appropriation is available until spent.7.8(b) $10,800,000 each year is from the general 7.9fund for the state's vocational rehabilitation 7.10program under Minnesota Statutes, chapter 7.11268A.7.12(c) $5,928,000 each year is from the general 7.13fund for the state services for the blind 7.14activities.7.15(d) $2,150,000 each year is from the general 7.16fund for grants to centers for independent 7.17living under Minnesota Statutes, section 7.18268A.11.7.19(e) $315,000 each year is from the general 7.20fund and $105,000 each year is from the 7.21workforce development fund for a grant 7.22under Minnesota Statutes, section 116J.8747, 7.23to Twin Cities RISE! to provide training to 7.24hard-to-train individuals. Funds unexpended 7.25in the first year are available for expenditure 7.26in the second year.7.27(f) $100,000 each year is from the general 7.28fund for a grant to Northern Connections 7.29in Perham to implement and operate a 7.30workforce program that provides one-stop 7.31supportive services to individuals as they 7.32transition into the workforce.7.33(g) $5,091,000 each year is from the general 7.34fund and $6,527,000 each year is from the 7.35workforce development fund for extended 8.1employment services for persons with severe 8.2disabilities or related conditions under 8.3Minnesota Statutes, section 268A.15. Of 8.4the general fund appropriation, $125,000 8.5each year is to supplement funds paid for 8.6wage incentives for the community support 8.7fund established in Minnesota Rules, part 8.83300.2045.8.9(h) $1,479,000 each year is from the general 8.10fund for grants to programs that provide 8.11employment support services to persons with 8.12mental illness under Minnesota Statutes, 8.13sections 268A.13 and 268A.14. Grants 8.14may be used for special projects for young 8.15people with mental illness transitioning from 8.16school to work and people with serious 8.17mental illness receiving services through 8.18a mental health court or civil commitment 8.19court. Special projects must demonstrate 8.20interagency collaboration.8.21(i) $135,000 each year is from the general 8.22fund and $163,000 each year is from the 8.23workforce development fund for a grant 8.24under Minnesota Statutes, section 268A.03, 8.25to Rise, Inc. for the Minnesota Employment 8.26Center for People Who are Deaf or Hard of 8.27Hearing. Money not expended the first year 8.28is available the second year.8.29(j) $80,000 each year is from the general fund 8.30and $160,000 each year is from the workforce 8.31development fund for a grant to Lifetrack 8.32Resources for its immigrant and refugee 8.33collaborative program, including those 8.34related to job-seeking skills and workplace 8.35orientation, intensive job development, 9.1functional work English, and on-site job 9.2coaching. This appropriation may also be 9.3used in Rochester.9.4(k) $1,100,000 each year is from the 9.5workforce development fund for the 9.6Opportunities Industrialization Center 9.7programs. The OIC state council must 9.8not be colocated with the Department of 9.9Employment and Economic Development.9.10(l) $2,450,000 the first year is a onetime 9.11appropriation from the workforce 9.12development fund for the Minnesota youth 9.13program under Minnesota Statutes, sections 9.14116L.56 and 116L.561.9.15(m) $630,000 the first year is a onetime 9.16appropriation from the workforce 9.17development fund for grants for the 9.18Minneapolis summer youth employment 9.19program. The commissioner shall establish 9.20criteria for awarding the grant.9.21Of this appropriation, 25 percent is for a grant 9.22to the Minneapolis learn-to-earn summer 9.23youth employment program.9.24(n) $750,000 the first year is a onetime 9.25appropriation from the workforce 9.26development fund for a grant to the 9.27Minnesota Alliance of Boys and Girls 9.28Clubs to administer a statewide project 9.29of youth jobs skills development. This 9.30project, which may have career guidance 9.31components, including health and life skills, 9.32is to encourage, train, and assist youth in 9.33job-seeking skills, workplace orientation, 9.34and job-site knowledge through coaching. 9.35This grant requires a 25 percent match 10.1from nonstate resources. The Alliance may 10.2work collaboratively with the Minneapolis 10.3Park Board for summer youth employment 10.4programming.10.5(o) $391,000 the first year is a onetime 10.6appropriation from the workforce 10.7development fund for grants to fund summer 10.8youth employment in St. Paul. The 10.9commissioner shall establish criteria for 10.10awarding the grant.10.11(p) $700,000 the first year is a onetime 10.12appropriation from the workforce 10.13development fund for the youthbuild 10.14program under Minnesota Statutes, sections 10.15116L.361 to 116L.366.10.16(q) $238,000 the first year is a onetime 10.17appropriation from the workforce 10.18development fund for grants to provide 10.19interpreters for a regional transition program 10.20that specializes in providing culturally 10.21appropriate transition services leading to 10.22employment for deaf, hard-of-hearing, and 10.23deafblind students.10.24(r) $5,159,000 the second year is from 10.25the workforce development fund for the 10.26youth workforce development competitive 10.27grant pilot program. The commissioner 10.28shall develop and implement a competitive 10.29grant program to provide workforce 10.30training services to youth in Minnesota. 10.31Of this amount, up to five percent is for 10.32administering and monitoring this program. 10.33The commissioner shall report by October 10.3415, 2011, to the standing committees of the 10.35senate and house of representatives having 11.1jurisdiction over workforce development 11.2issues on program parameters and criteria 11.3developed for the competitive grants under 11.4this paragraph. This appropriation is added 11.5to the agency's base.

11.6Subd. 4.State-Funded Administration858,000858,000

11.7Sec. 4. HOUSING FINANCE AGENCY

11.8Subdivision 1.Total Appropriation$36,251,000$36,251,000

11.9The amounts that may be spent for each 11.10purpose are specified in the following 11.11subdivisions.11.12This appropriation is for transfer to the 11.13housing development fund for the programs 11.14specified. Except as otherwise indicated, this 11.15transfer is part of the agency's permanent 11.16budget base.

11.17Subd. 2.Challenge Program7,059,0007,059,000

11.18For the economic development and housing 11.19challenge program under Minnesota 11.20Statutes, section 462A.33. Of this amount, 11.21$1,208,000 each year shall be made available 11.22during the first eight months of the fiscal 11.23year exclusively for housing projects for 11.24American Indians. Any funds not committed 11.25to housing projects for American Indians in 11.26the first eight months of the fiscal year shall 11.27be available for any eligible activity under 11.28Minnesota Statutes, section 462A.33.

11.29Subd. 3.Housing Trust Fund8,305,0008,305,000

11.30For deposit in the housing trust fund account, 11.31for the purposes provided under Minnesota 11.32Statutes, section 462A.201.

11.33Subd. 4.Rental Assistance for Mentally Ill2,638,0002,638,000

12.1For the rental housing assistance program for 12.2persons with a mental illness or families with 12.3an adult member with a mental illness under 12.4Minnesota Statutes, section 462A.2097.

12.5Subd. 5.Family Homeless Prevention7,465,0007,465,000

12.6For the family homeless prevention and 12.7assistance programs under Minnesota 12.8Statutes, section 462A.204.

12.9Subd. 6.Home Ownership Assistance Fund797,000797,000

12.10For the home ownership assistance program 12.11under Minnesota Statutes, section 462A.21, 12.12subdivision 8. The annual interest rate on 12.13loans provided under Minnesota Statutes, 12.14section 462A.21, subdivision 8, must equal 12.15two percent.

12.16Subd. 7.Affordable Rental Investment Fund6,813,0006,813,000

12.17(a) For the affordable rental investment fund 12.18program under Minnesota Statutes, section 12.19462A.21, subdivision 8b. The appropriation 12.20is to finance the acquisition, rehabilitation, 12.21and debt restructuring of federally assisted 12.22rental property and for making equity 12.23take-out loans under Minnesota Statutes, 12.24section 462A.05, subdivision 39.12.25(b) The owner of federally assisted rental 12.26property must agree to participate in 12.27the applicable federally assisted housing 12.28program and to extend any existing 12.29low-income affordability restrictions on the 12.30housing for the maximum term permitted. 12.31The owner must also enter into an agreement 12.32that gives local units of government, 12.33housing and redevelopment authorities, 12.34and nonprofit housing organizations the 13.1right of first refusal if the rental property 13.2is offered for sale. Priority must be given 13.3among comparable federally assisted rental 13.4properties to properties with the longest 13.5remaining term under an agreement for 13.6federal assistance. Priority must also be 13.7given among comparable rental housing 13.8developments to developments that are or 13.9will be owned by local government units, a 13.10housing and redevelopment authority, or a 13.11nonprofit housing organization.13.12(c) The appropriation also may be used to 13.13finance the acquisition, rehabilitation, and 13.14debt restructuring of existing supportive 13.15housing properties. For purposes of this 13.16subdivision, "supportive housing" means 13.17affordable rental housing with links to 13.18services necessary for individuals, youth, and 13.19families with children to maintain housing 13.20stability.

13.21Subd. 8.Housing Rehabilitation2,449,0002,449,000

13.22For the housing rehabilitation program 13.23under Minnesota Statutes, section 462A.05, 13.24subdivision 14, for rental housing 13.25developments.

13.2613.27Subd. 9.Homeownership Education, Counseling, and Training600,000600,000

13.28For the homeownership education, 13.29counseling, and training program under 13.30Minnesota Statutes, section 462A.209. 13.31Notwithstanding Minnesota Statutes, section 13.32462A.209, subdivision 7, paragraph (b), 13.33more than one-half of the funds awarded 13.34for foreclosure prevention and assistance 14.1activities may be used for mortgage or 14.2financial counseling services.

14.3Subd. 10.Capacity-Building Grants125,000125,000

14.4For nonprofit capacity-building grants 14.5under Minnesota Statutes, section 462A.21, 14.6subdivision 3b.

14.714.8Sec. 5. DEPARTMENT OF LABOR AND INDUSTRY

14.9Subdivision 1.Total Appropriation$22,328,000$22,328,000

14.10Appropriations by Fund14.112012201314.12General800,000800,00014.1314.14Workers' Compensation20,871,00020,871,00014.1514.16Workforce Development657,000657,000

14.17The amounts that may be spent for each 14.18purpose are specified in the following 14.19subdivisions.

14.20Subd. 2.Workers' Compensation14,832,00014,832,000

14.21This appropriation is from the workers' 14.22compensation fund.14.23$200,000 each year is for grants to the 14.24Vinland Center for rehabilitation services. 14.25Grants shall be distributed as the department 14.26refers injured workers to the Vinland Center 14.27for rehabilitation services.

14.28Subd. 3.Labor Standards and Apprenticeship1,457,0001,457,000

14.29Appropriations by Fund14.30General800,000800,00014.3114.32Workforce Development657,000657,000

14.33$657,000 each year is appropriated from 14.34the workforce development fund for the 15.1apprenticeship program under Minnesota 15.2Statutes, chapter 178.

15.3Subd. 4.General Support6,039,0006,039,000

15.4This appropriation is from the workers' 15.5compensation fund.

15.615.7Sec. 6. BUREAU OF MEDIATION SERVICES

15.8Subdivision 1.Total Appropriation$1,525,000$1,525,000

15.9The amounts that may be spent for each 15.10purpose are specified in the following 15.11subdivisions.

15.12Subd. 2.Mediation Services1,471,0001,471,000

15.1315.14Subd. 3.Labor Management Cooperation Grants54,00054,000

15.15$54,000 each year is for grants to area labor 15.16management committees. Grants may be 15.17awarded for a 12-month period beginning 15.18July 1 each year. Any unencumbered balance 15.19remaining at the end of the first year does not 15.20cancel but is available for the second year.

15.2115.22Sec. 7. WORKERS' COMPENSATION COURT OF APPEALS$1,703,000$1,703,000

15.23This appropriation is from the workers' 15.24compensation fund. 

15.25Sec. 8. BOARD OF ACCOUNTANCY$480,000$480,000

15.2615.2715.2815.29Sec. 9. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN$774,000$774,000

15.3015.31Sec. 10. BOARD OF COSMETOLOGIST EXAMINERS$1,046,000$1,046,000

15.32Sec. 11. BOARD OF BARBER EXAMINERS$257,000$257,000

16.116.2Sec. 12. MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY$107,000$0

16.3This is a onetime appropriation.

16.4Sec. 13. TRANSFERS

16.5Prior to June 30, 2012, the commissioner 16.6of iron range resources shall transfer 16.7$60,000,000 from the Douglas J. Johnson 16.8Economic Protection Trust to the general 16.9fund. This is a onetime transfer.16.10The unexpended balance, estimated to 16.11be $1,575,000, of funds collected for 16.12unemployment insurance state administration 16.13under Minnesota Statutes, section 268.18, 16.14subdivision 2, is transferred to the general 16.15fund.16.16ARTICLE 216.17ECONOMIC DEVELOPMENT AND MISCELLANEOUS PROVISIONS16.18    Section 1. Minnesota Statutes 2010, section 116J.035, is amended by adding a 16.19subdivision to read:16.20    Subd. 7.Monitoring pass-through grant recipients.The commissioner shall 16.21monitor the activities and outcomes of programs and services funded by legislative 16.22appropriations and administered by the department on a pass-through basis. Unless 16.23amounts are otherwise appropriated for administrative costs, the commissioner may 16.24retain up to five percent of the amount appropriated to the department for grants to 16.25pass-through entities. Amounts retained are deposited to a special revenue account and 16.26are appropriated to the commissioner for costs incurred in administering and monitoring 16.27the pass-through grants.16.28    Sec. 2. Minnesota Statutes 2010, section 116L.3625, is amended to read:16.29116L.3625 ADMINISTRATIVE COSTS.16.30The commissioner may use up to five percent of the biennial appropriation for 16.31Youthbuild from the general fund to pay costs incurred by the department in administering 16.32Youthbuild during the biennium.17.1    Sec. 3. Minnesota Statutes 2010, section 116L.62, is amended to read:17.2116L.62 DISTRIBUTION AND USE OF STATE MONEY.17.3The commissioner shall distribute the money appropriated for:17.4(a) comprehensive job training and related services or job opportunities programs 17.5for economically disadvantaged, unemployed, and underemployed individuals, including 17.6persons of limited English speaking ability, through opportunities industrialization 17.7centers; and17.8(b) the establishment and operation in Minnesota of these centers.17.9The commissioner may use up to five percent of the appropriation for opportunities 17.10industrialization center programs to pay costs incurred by the department in administering 17.11the programs.17.12Comprehensive job training and related services include: recruitment, counseling, 17.13remediation, motivational prejob training, vocational training, job development, job 17.14placement, and other appropriate services enabling individuals to secure and retain 17.15employment at their maximum capacity.17.16    Sec. 4. Minnesota Statutes 2010, section 154.06, is amended to read:17.17154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 17.18REGISTERED APPRENTICE.17.19    Subdivision 1.Qualifications; duration or registration.(a) A person is qualified 17.20to receive a certificate of registration as a registered apprentice:17.21(1) who has completed at least ten grades of an approved school;17.22(2) who has graduated from a barber school approved by the board; and17.23(3) who has passed an examination conducted by the board to determine fitness to 17.24practice as a registered apprentice.17.25(b) An applicant for a certificate of registration to practice as an apprentice who fails 17.26to pass the examination conducted by the board is required to complete a further course 17.27of study of at least 500 hours, of not more than eight hours in any one working day, 17.28in a barber school approved by the board.17.29(c) A certificate of registration of an apprentice shall be valid for four years from the 17.30date the certificate of registration is issued by the board and shall not be renewed. During 17.31the four-year period the certificate of registration shall remain in full force and effect only 17.32if the apprentice complies with all the provisions of sections 
         154.001, 
         154.002, 
         154.003, 17.33154.01
          to 
         154.161, 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26, including the payment of 17.34an annual fee, and the rules of the board.18.1    Subd. 2.Limited extension of registration.(a) If a registered apprentice, during 18.2the term in which the certificate of registration is in effect, enters full-time active duty in 18.3the armed forces of the United States of America, the expiration date of the certificate 18.4of registration shall be extended by a period of time equal to the period or periods of 18.5active duty.18.6(b) The expiration date of a certificate issued to a person while incarcerated shall be 18.7extended once so that it expires four years from the date of first release from a correctional 18.8facility after the person becomes a registered apprentice. This paragraph applies when a 18.9person graduates from a barber school approved by the board and is issued a certificate of 18.10registration while incarcerated by the Department of Corrections or the Federal Bureau 18.11of Prisons.18.12    Sec. 5. Minnesota Statutes 2010, section 154.065, subdivision 2, is amended to read:18.13    Subd. 2. Qualifications. A person is qualified to receive a certificate of registration 18.14as an instructor of barbering who:18.15(1) is a graduate from an approved high school, or its equivalent, as determined by 18.16examination by the Department of Education;18.17(2) has qualified for a teacher's or instructor's vocational certificate; successfully 18.18completed instructor barber training from a board-approved program of not less than 18.1940 clock hours, or completed a college or university program resulting in a technical 18.20or vocational education certificate or its equivalent, issued by an accredited college or 18.21university and approved by the board;18.22(3) is currently a registered barber in this state and has at least three years experience 18.23as a registered barber in this state, or its equivalent as determined by the board; and18.24(4) has passed an examination conducted by the board to determine fitness to 18.25instruct in barbering.18.26A certificate of registration under this section is provisional until a teacher's or 18.27instructor's vocational certificate has been issued by the Department of Education. A 18.28provisional certificate of registration is valid for 30 days and is not renewable.18.29    Sec. 6. Minnesota Statutes 2010, section 154.08, is amended to read:18.30154.08 APPLICATION; FEE.18.31Each applicant for an examination shall:18.32(1) make application to the Board of Barber Examiners on blank forms prepared and 18.33furnished by it, the application to contain proof under the applicant's oath of the particular 18.34qualifications and identity  of the applicant;19.1(2) furnish to the board two five-inch x three-inch signed photographs of the 19.2applicant, one to accompany the application and one to be returned to the applicant, 19.3to be presented to the board when the applicant appears for examination; present a 19.4government-issued picture identification as proof of identity when the applicant appears 19.5for examination;  and19.6(3) pay to the board the required fee.19.7    Sec. 7. Minnesota Statutes 2010, section 154.11, subdivision 1, is amended to read:19.8    Subdivision 1. Examination of nonresidents. A person who meets all of the 19.9requirements for barber registration in sections 
         154.001, 
         154.002, 
         154.003, 
         154.01 to 19.10154.161
         , 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26 and either has a license, certificate 19.11of registration, or an equivalent as a practicing barber or instructor of barbering from 19.12another state or country which in the discretion of the board has substantially the same 19.13requirements for registering barbers and instructors of barbering as required by sections 19.14154.001
         , 
         154.002, 
         154.003, 
         154.01 to 
         154.161, 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26 or 19.15can prove by sworn affidavits practice as a barber or instructor of barbering in another 19.16state or country for at least five years immediately prior to making application in this state, 19.17shall, upon payment of the required fee, be issued a certificate of registration without 19.18examination, provided that the other state or country grants the same privileges to holders 19.19of Minnesota certificates of registration.19.20    Sec. 8. Minnesota Statutes 2010, section 154.12, is amended to read:19.21154.12 EXAMINATION OF NONRESIDENT APPRENTICES.19.22A person who meets all of the requirements for registration as a barber in sections 19.23154.001
         , 
         154.002, 
         154.003, 
         154.01 to 
         154.161, 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26 and 19.24who has a license, a certificate of registration, or its equivalent as an apprentice in a state 19.25or country which in the discretion of the board has substantially the same requirements for 19.26registration as an apprentice as is provided by sections 
         154.001, 
         154.002, 
         154.003, 
         154.0119.27to 
         154.161, 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26, shall, upon payment of the required 19.28fee, be issued a certificate of registration without examination, provided that the other state 19.29or country grants the same privileges to holders of Minnesota certificates of registration.19.30    Sec. 9. Minnesota Statutes 2010, section 268.18, subdivision 2, is amended to read:19.31    Subd. 2. Overpayment because of fraud. (a) Any applicant who receives 19.32unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose 19.33any material fact, or who makes a false statement or representation without a good faith 20.1belief as to the correctness of the statement or representation, has committed fraud. After 20.2the discovery of facts indicating fraud, the commissioner must make a determination 20.3that the applicant obtained unemployment benefits by fraud and that the applicant must 20.4promptly repay the unemployment benefits to the trust fund. In addition, the commissioner 20.5must assess a penalty equal to 40 percent of the amount fraudulently obtained. This 20.6penalty is in addition to penalties under section 
         268.182.20.7    (b) Unless the applicant files an appeal within 20 calendar days after the sending 20.8of the determination of overpayment by fraud to the applicant by mail or electronic 20.9transmission, the determination is final. Proceedings on the appeal are conducted in 20.10accordance with section 
         268.105.20.11    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest 20.12assessed, the total due may be collected by the methods allowed under state and federal 20.13law. A determination of overpayment by fraud must state the methods of collection the 20.14commissioner may use to recover the overpayment. Money received in repayment of 20.15fraudulently obtained unemployment benefits, penalties, and interest is first applied to the 20.16unemployment benefits overpaid, then to the penalty amount due, then to any interest due. 20.1762.5 percent of the Payments made toward the penalty are credited to the contingent 20.18account and 37.5 percent credited to the administration account.20.19    (d) If an applicant has been overpaid unemployment benefits under the law of 20.20another state because of fraud and that state certifies that the applicant is liable to repay 20.21the unemployment benefits and requests the commissioner to recover the overpayment, 20.22the commissioner may offset from future unemployment benefits otherwise payable the 20.23amount of overpayment.20.24    (e) Unemployment benefits paid for weeks more than four years before the date of a 20.25determination of overpayment by fraud issued under this subdivision are not considered 20.26overpaid unemployment benefits.20.27    Sec. 10. Minnesota Statutes 2010, section 268.18, subdivision 2b, is amended to read:20.28    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained, and 20.29any penalty amounts assessed under subdivision 2, the commissioner must assess interest 20.30at the rate of 1-1/2 percent per month on any amount that remains unpaid beginning 20.3130 calendar days after the date of the determination of overpayment by fraud. A 20.32determination of overpayment by fraud must state that interest will be assessed.20.33    (b) If the determination did not state that interest will be assessed, interest is assessed 20.34beginning 30 calendar days after notification, by mail or electronic transmission, to the 20.35applicant that interest is now assessed.21.1    (c) Interest payments under this section are credited to the administration contingent21.2account.21.3    Sec. 11. Minnesota Statutes 2010, section 268.199, is amended to read:21.4268.199 CONTINGENT ACCOUNT.21.5    (a) There is created in the state treasury a special account, to be known as the 21.6contingent account, that does not lapse nor revert to any other fund or account. This 21.7account consists of all money collected under this chapter that is required to be placed 21.8in this account and any interest earned on the account. All money in this account is 21.9appropriated and available for administration of the Minnesota unemployment insurance 21.10program unless otherwise appropriated by session law.21.11    (b) All money in this account must be deposited, administered, and disbursed in the 21.12same manner and under the same conditions and requirements as is provided by law for 21.13the other special accounts in the state treasury.21.14(c) Beginning in fiscal year 2012 and each fiscal year thereafter, all money in the 21.15account shall be transferred to the general fund before the closing of the fiscal year.21.16    Sec. 12. Minnesota Statutes 2010, section 298.17, is amended to read:21.17298.17 OCCUPATION TAXES TO BE APPORTIONED.21.18All occupation taxes paid by persons, copartnerships, companies, joint stock 21.19companies, corporations, and associations, however or for whatever purpose organized, 21.20engaged in the business of mining or producing iron ore or other ores, when collected 21.21shall be apportioned and distributed in accordance with the Constitution of the state of 21.22Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited 21.23in the state treasury and credited to the general fund of which four-ninths shall be used 21.24for the support of elementary and secondary schools; and ten percent of the proceeds of 21.25the tax imposed by this section shall be deposited in the state treasury and credited to the 21.26general fund for the general support of the university. Of the moneys apportioned to the 21.27general fund by this section there is annually appropriated and credited to the Iron Range 21.28Resources and Rehabilitation Board account in the special revenue fund an amount equal 21.29to that which would have been generated by a 1.5 cent tax imposed by section 298.24 on 21.30each taxable ton produced in the preceding calendar year, to be expended for the purposes 21.31of section 298.22. The money appropriated pursuant to this section shall be used (1) 21.32to provide environmental development grants to local governments located within any 21.33county in region 3 as defined in governor's executive order number 60, issued on June 21.3412, 1970, which does not contain a municipality qualifying pursuant to section 273.134, 22.1paragraph (b), or (2) to provide economic development loans or grants to businesses 22.2located within any such county, provided that the county board or an advisory group 22.3appointed by the county board to provide recommendations on economic development 22.4shall make recommendations to the Iron Range Resources and Rehabilitation Board 22.5regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board 22.6account shall be made by May 15 annually.22.7Of the money allocated to Koochiching County, one-third must be paid to the 22.8Koochiching County Economic Development Commission.22.9    Sec. 13. Minnesota Statutes 2010, section 341.321, is amended to read:22.10341.321 FEE SCHEDULE.22.11    (a) The fee schedule for professional licenses issued by the commission is as follows:22.12    (1) referees, $25 $45 for each initial license and each renewal;22.13    (2) promoters, $400 for each initial license and each renewal;22.14    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal;22.15    (4) trainers, $25 $45 for each initial license and each renewal;22.16    (5) ring announcers, $25 $45 for each initial license and each renewal;22.17    (6) seconds, $25 $45 for each initial license and each renewal;22.18    (7) timekeepers, $25 $45 for each initial license and each renewal;22.19    (8) combatants, $25 $45 for each initial license and each renewal;22.20    (9) managers, $25 $45 for each initial license and each renewal; and22.21    (10) ringside physicians, $25 $45 for each initial license and each renewal.22.22In addition to the license fee and the late filing penalty fee in section 
         341.32, subdivision 22.232, if applicable, an individual who applies for a combatant professional license on the 22.24same day the combative sporting event is held shall pay a late fee of $100 plus the original 22.25license fee of $45 at the time the application is submitted.22.26    (b) The fee schedule for amateur licenses issued by the commission is as follows:22.27    (1) referees, $10 $45 for each initial license and each renewal;22.28    (2) promoters, $100 $400 for each initial license and each renewal;22.29    (3) judges and knockdown judges, $10 $45 for each initial license and each renewal;22.30    (4) trainers, $10 $45 for each initial license and each renewal;22.31    (5) ring announcers, $10 $45 for each initial license and each renewal;22.32    (6) seconds, $10 $45 for each initial license and each renewal;22.33    (7) timekeepers, $10 $45 for each initial license and each renewal;22.34    (8) combatant, $10 $25 for each initial license and each renewal;22.35    (9) managers, $10 $45 for each initial license and each renewal; and23.1    (10) ringside physicians, $10 $45 for each initial license and each renewal.23.2    (c) The commission shall establish a contest fee for each combative sport contest. 23.3The professional combative sport contest fee is $1,500 per event or not more than four 23.4percent of the gross ticket sales, whichever is greater, as determined by the commission 23.5when the combative sport contest is scheduled, except that the amateur combative sport 23.6contest fee shall be $150 $500 or not more than four percent of the gross ticket sales, 23.7whichever is greater. The commission shall consider the size and type of venue when 23.8establishing a contest fee. The commission may establish the maximum number of 23.9complimentary tickets allowed for each event by rule. An A professional or amateur 23.10combative sport contest fee is nonrefundable.23.11    (d) All fees and penalties collected by the commission must be deposited in the 23.12commission account in the special revenue fund.23.13    Sec. 14. Laws 2009, chapter 78, article 1, section 18, is amended to read:

23.1423.15Sec. 18. COMBATIVE SPORTS COMMISSION$80,000$80,000

23.16This is a onetime appropriation. The 23.17Combative Sports Commission expires on 23.18July 1, 2011, unless the commissioner of 23.19finance determines that the commission's 23.20projected expenditures for the fiscal biennium 23.21ending June 30, 2013, will not exceed the 23.22commission's projected revenues for the 23.23fiscal biennium ending June 30, 2013, from 23.24fees and penalties authorized in Minnesota 23.25Statutes 2008, chapter 341.23.26ARTICLE 323.27LABOR AND INDUSTRY23.28    Section 1. Minnesota Statutes 2010, section 181.723, subdivision 5, is amended to read:23.29    Subd. 5. Application. To obtain an independent contractor exemption certificate, 23.30the individual must submit, in the manner prescribed by the commissioner, a complete 23.31application and the certificate fee required under subdivision 14.23.32    (a) A complete application must include all of the following information:23.33    (1) the individual's full name;24.1    (2) the individual's residence address and telephone number;24.2    (3) the individual's business name, address, and telephone number;24.3    (4) the services for which the individual is seeking an independent contractor 24.4exemption certificate;24.5    (5) the individual's Social Security number;24.6    (6) the individual's or the individual's business federal employer identification 24.7number, if a number has been issued to the individual or the individual's business;24.8    (7) any information or documentation that the commissioner requires by rule that 24.9will assist the department in determining whether to grant or deny the individual's 24.10application; and24.11    (8) the individual's sworn statement that the individual meets all of the following 24.12conditions:24.13    (i) maintains a separate business with the individual's own office, equipment, 24.14materials, and other facilities;24.15    (ii) holds or has applied for a federal employer identification number or has filed 24.16business or self-employment income tax returns with the federal Internal Revenue Service 24.17if the person has performed services in the previous year for which the individual is 24.18seeking the independent contractor exemption certificate;24.19    (iii) operates under contracts to perform specific services for specific amounts of 24.20money and under which the individual controls the means of performing the services;24.21    (iv) incurs the main expenses related to the service that the individual performs 24.22under contract;24.23    (v) is responsible for the satisfactory completion of services that the individual 24.24contracts to perform and is liable for a failure to complete the service;24.25    (vi) receives compensation for service performed under a contract on a commission 24.26or per-job or competitive bid basis and not on any other basis;24.27    (vii) may realize a profit or suffer a loss under contracts to perform service;24.28    (viii) has continuing or recurring business liabilities or obligations; and24.29    (ix) the success or failure of the individual's business depends on the relationship of 24.30business receipts to expenditures.24.31    (b) Individuals who are applying for or renewing a residential building contractor or 24.32residential remodeler license under sections 
         326B.197, 326B.802, 326B.805, 326B.81, 24.33326B.815, 326B.821
          to 
         326B.86, 326B.87 to 
         326B.885, and 
         327B.041, and any rules 24.34promulgated pursuant thereto, may simultaneously apply for or renew an independent 24.35contractor exemption certificate. The commissioner shall create an application form 24.36that allows for the simultaneous application for both a residential building contractor 25.1or residential remodeler license and an independent contractor exemption certificate. 25.2If individuals simultaneously apply for or renew a residential building contractor or 25.3residential remodeler license and an independent contractor exemption certificate using 25.4the form created by the commissioner, individuals shall only be required to provide, in 25.5addition to the information required by section 
         326B.83 and rules promulgated pursuant 25.6thereto, the sworn statement required by paragraph (a), clause (8), and any additional 25.7information required by this subdivision that is not also required by section 
         326B.8325.8and any rules promulgated thereto. When individuals submit a simultaneous application 25.9on the form created by the commissioner for both a residential building contractor or 25.10residential remodeler license and an independent contractor exemption certificate, the 25.11application fee shall be $150. An independent contractor exemption certificate that is in 25.12effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by 25.13the commissioner or canceled by the individual.25.14    (c) Within 30 days of receiving a complete application and the certificate fee, the 25.15commissioner must either grant or deny the application. The commissioner may deny 25.16an application for an independent contractor exemption certificate if the individual has 25.17not submitted a complete application and certificate fee or if the individual does not 25.18meet all of the conditions for holding the independent contractor exemption certificate. 25.19The commissioner may revoke an independent contractor exemption certificate if the 25.20commissioner determines that the individual no longer meets all of the conditions for 25.21holding the independent contractor exemption certificate, commits any of the actions 25.22set out in subdivision 7, or fails to cooperate with a department investigation into the 25.23continued validity of the individual's certificate. Once issued, an independent contractor 25.24exemption certificate remains in effect for four years unless:25.25    (1) revoked by the commissioner; or25.26    (2) canceled by the individual.25.27    (d) If the department denies an individual's original or renewal application for 25.28an independent contractor exemption certificate or revokes an independent contractor 25.29exemption certificate, the commissioner shall issue to the individual an order denying or 25.30revoking the certificate. The commissioner may issue an administrative penalty order to 25.31an individual or person who commits any of the actions set out in subdivision 7. The 25.32commissioner may file and enforce the unpaid portion of a penalty as a judgment in 25.33district court without further notice or additional proceedings.25.34    (e) An individual or person to whom the commissioner issues an order under 25.35paragraph (d) shall have 30 days after service of the order to request a hearing. The 25.36request for hearing must be in writing and must be served on or faxed to the commissioner 26.1at the address or facsimile number specified in the order by the 30th day after service of 26.2the order. If the individual does not request a hearing or if the individual's request for a 26.3hearing is not served on or faxed to the commissioner by the 30th day after service of the 26.4order, the order shall become a final order of the commissioner and will not be subject to 26.5review by any court or agency. The date on which a request for hearing is served by mail 26.6shall be the postmark date on the envelope in which the request for hearing is mailed. If 26.7the individual serves or faxes a timely request for hearing, the hearing shall be a contested 26.8case hearing and shall be held in accordance with chapter 14.26.9    Sec. 2. Minnesota Statutes 2010, section 182.6553, subdivision 6, is amended to read:26.10    Subd. 6. Enforcement. This section shall be enforced by the commissioner under 26.11section sections 182.66 and182.661. A violation of this section is subject to the penalties 26.12provided under section 
         182.666.26.13    Sec. 3. Minnesota Statutes 2010, section 326B.04, subdivision 2, is amended to read:26.14    Subd. 2. Deposits.  Unless otherwise specifically designated by law: (1) all money 26.15collected under sections 
         144.122, paragraph (f); 
         181.723; 
         326B.092 to 326B.096; 26.16326B.101
          to 
         326B.194; 
         326B.197; 
         326B.32 to 
         326B.399; 
         326B.43 to 
         326B.49; 
         326B.5226.17to 
         326B.59; 
         326B.802 to 
         326B.885; 
         326B.90 to 
         326B.998; 
         327.31 to 
         327.36; and 26.18327B.01
          to 
         327B.12, except penalties, is credited to the construction code fund; (2) all 26.19fees collected under section 45.23 sections 326B.098 to 326B.099 in connection with 26.20continuing education for residential contractors, residential remodelers, and residential 26.21roofersany license, registration, or certificate issued pursuant to this chapter are credited 26.22to the construction code fund; and (3) all penalties assessed under the sections set forth 26.23in clauses (1) and (2) and all penalties assessed under sections 
         144.99 to 
         144.993 in 26.24connection with any violation of sections 
         326B.43 to 
         326B.49 or 
         326B.52 to 
         326B.59 or 26.25the rules adopted under those sections are credited to the assigned risk safety account 26.26established by section 
         79.253.26.27    Sec. 4. Minnesota Statutes 2010, section 326B.091, is amended to read:26.28326B.091 DEFINITIONS.26.29    Subdivision 1. Applicability. For purposes of sections 
         326B.091 to 
         326B.09826.30326B.099, the terms defined in this section have the meanings given them.26.31    Subd. 2. Applicant. "Applicant" means a person who has submitted to the 26.32department an application for aan initial or renewal license.27.1    Subd. 3. License. "License" means any registration, certification, or other form 27.2of approval authorized by this chapter 326B and chapter 327B to be issued by the 27.3commissioner or department as a condition of doing business or conducting a trade, 27.4profession, or occupation in Minnesota. License includes specifically but not exclusively 27.5an authorization issued by the commissioner or department: to perform electrical work, 27.6plumbing or water conditioning work, high pressure piping work, or residential building 27.7work of a residential contractor, residential remodeler, or residential roofer; to install 27.8manufactured housing; to serve as a building official; or to operate a boiler or boat.27.9    Subd. 4. Licensee. "Licensee" means the person named on the license as the person 27.10authorized to do business or conduct the trade, profession, or occupation in Minnesota.27.11    Subd. 5. Notification date. "Notification date" means the date of the written 27.12notification from the department to an applicant that the applicant is qualified to take the 27.13examination required for licensure.27.14    Subd. 5b.Qualifying individual."Qualifying individual" means the individual 27.15responsible for obtaining continuing education on behalf of a residential building 27.16contractor, residential remodeler, or residential roofer licensed pursuant to sections 27.17326B.801 to 326B.885.27.18    Subd. 6. Renewal deadline. "Renewal deadline," when used with respect to a 27.19license, means 30 days before the date that the license expires.27.20    Sec. 5. Minnesota Statutes 2010, section 326B.098, is amended to read:27.21326B.098 CONTINUING EDUCATION.27.22    Subdivision 1. Applicability Department seminars. This section applies to 27.23seminars offered by the department for the purpose of allowing enabling licensees to meet 27.24continuing education requirements for license renewal.27.25    Subd. 2. Rescheduling. An individual who is registered with the department to 27.26attend a seminar may reschedule one time only, to attend the same seminar on a date 27.27within one year after the date of the seminar the individual was registered to attend.27.28    Subd. 3. Fees nonrefundable. All seminar fees paid to the department are 27.29nonrefundable except for any overpayment of fees or if the department cancels the seminar.27.30    Sec. 6. [326B.0981] CONTINUING EDUCATION; NONDEPARTMENT 27.31SEMINARS.27.32This section applies to seminars that are offered by an entity other than the 27.33department for the purpose of enabling licensees to meet continuing education 27.34requirements for license renewal.28.1    Sec. 7. Minnesota Statutes 2010, section 326B.13, subdivision 8, is amended to read:28.2    Subd. 8. Effective date of rules. A rule to adopt or amend the State Building Code 28.3is effective 180 days after the filing of the rule with the secretary of state under section 28.414.16 or 14.26 publication of the rule's notice of adoption in the State Register. The rule 28.5may provide for a later effective date. The rule may provide for an earlier effective date 28.6if the commissioner or board proposing the rule finds that an earlier effective date is 28.7necessary to protect public health and safety after considering, among other things, the 28.8need for time for training of individuals to comply with and enforce the rule.28.9    Sec. 8. Minnesota Statutes 2010, section 326B.148, subdivision 1, is amended to read:28.10    Subdivision 1. Computation. To defray the costs of administering sections 28.11326B.101
          to 
         326B.194, a surcharge is imposed on all permits issued by municipalities in 28.12connection with the construction of or addition or alteration to buildings and equipment or 28.13appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge 28.14receipts to award grants for code research and development and education.28.15    If the fee for the permit issued is fixed in amount the surcharge is equivalent to 28.16one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June 28.1730, 2011 2013, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5, 28.18whichever amount is greater. For all other permits, the surcharge is as follows:28.19    (1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the 28.20surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition, 28.21or alteration;28.22    (2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths 28.23mill (.0004) of the value between $1,000,000 and $2,000,000;28.24    (3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths 28.25mill (.0003) of the value between $2,000,000 and $3,000,000;28.26    (4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth 28.27mill (.0002) of the value between $3,000,000 and $4,000,000;28.28    (5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth 28.29mill (.0001) of the value between $4,000,000 and $5,000,000; and28.30    (6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth 28.31mill (.00005) of the value that exceeds $5,000,000.28.32    Sec. 9. Minnesota Statutes 2010, section 326B.42, is amended by adding a subdivision 28.33to read:29.1    Subd. 1b.Backflow prevention rebuilder. A "backflow prevention rebuilder" is an 29.2individual who is qualified by training prescribed by the Plumbing Board and possesses 29.3a master or journeyman plumber's license to engage in the testing, maintenance, and 29.4rebuilding of reduced pressure zone type backflow prevention assemblies as regulated by 29.5the plumbing code.29.6    Sec. 10. Minnesota Statutes 2010, section 326B.42, is amended by adding a 29.7subdivision to read:29.8    Subd. 1c.Backflow prevention tester. A "backflow prevention tester" is an 29.9individual who is qualified by training prescribed by the Plumbing Board to engage in 29.10the testing of reduced pressure zone type backflow prevention assemblies as regulated by 29.11the plumbing code. 29.12    Sec. 11. Minnesota Statutes 2010, section 326B.42, subdivision 8, is amended to read:29.13    Subd. 8. Plumbing contractor. "Plumbing contractor" means a licensed contractor 29.14whose responsible licensed plumber individual is a licensed master plumber.29.15    Sec. 12. Minnesota Statutes 2010, section 326B.42, subdivision 9, is amended to read:29.16    Subd. 9. Responsible licensed plumber individual. A contractor's "responsible 29.17licensed plumber individual" means the licensed master plumber or licensed restricted 29.18master plumber designated in writing by the contractor in the contractor's license 29.19application, or in another manner acceptable to the commissioner, as the individual 29.20responsible for the contractor's compliance with sections 
         326B.41 to 
         326B.49, all rules 29.21adopted under these sections and sections 
         326B.50 to 
         326B.59, and all orders issued 29.22under section 
         326B.082.29.23    Sec. 13. Minnesota Statutes 2010, section 326B.42, subdivision 10, is amended to read:29.24    Subd. 10. Restricted plumbing contractor. "Restricted plumbing contractor" 29.25means a licensed contractor whose responsible licensed plumber individual is a licensed 29.26restricted master plumber.29.27    Sec. 14. Minnesota Statutes 2010, section 326B.435, subdivision 2, is amended to read:29.28    Subd. 2. Powers; duties; administrative support. (a) The board shall have the 29.29power to:29.30    (1) elect its chair, vice-chair, and secretary;30.1    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 30.2and containing such other provisions as may be useful and necessary for the efficient 30.3conduct of the business of the board;30.4    (3) adopt the plumbing code that must be followed in this state and any plumbing 30.5code amendments thereto. The plumbing code shall include the minimum standards 30.6described in sections 
         326B.43, subdivision 1, and 
         326B.52, subdivision 1. The board 30.7shall adopt the plumbing code and any amendments thereto pursuant to chapter 14 and 30.8as provided in subdivision 6, paragraphs (b), (c), and (d);30.9    (4) review requests for final interpretations and issue final interpretations as provided 30.10in section 
         326B.127, subdivision 5;30.11    (5) adopt rules that regulate the licensure, certification, or registration of plumbing 30.12contractors, journeymen, unlicensed individuals, master plumbers, restricted master 30.13plumbers, restricted journeymen, restricted plumbing contractors, backflow prevention 30.14rebuilders and testers, water conditioning contractors, and water conditioning installers, 30.15and other persons engaged in the design, installation, and alteration of plumbing systems 30.16or engaged in or working at the business of water conditioning installation or service, or 30.17engaged in or working at the business of medical gas system installation, maintenance, or 30.18repair, except for those individuals licensed under section 
         326.02, subdivisions 2 and 3. 30.19The board shall adopt these rules pursuant to chapter 14 and as provided in subdivision 30.206, paragraphs (e) and (f);30.21(6) adopt rules that regulate continuing education for individuals licensed as master 30.22plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman 30.23plumbers, water conditioning contractors, and water conditioning installers, and for 30.24individuals certified under sections 326B.437 and 326B.438. The board shall adopt these 30.25rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) and (f);30.26    (7) refer complaints or other communications to the commissioner, whether oral or 30.27written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 30.28order that the commissioner has the authority to enforce pertaining to code compliance, 30.29licensure, or an offering to perform or performance of unlicensed plumbing services;30.30    (8) approve per diem and expenses deemed necessary for its members as provided in 30.31subdivision 3;30.32    (9) approve license reciprocity agreements;30.33    (10) select from its members individuals to serve on any other state advisory council, 30.34board, or committee; and30.35    (11) recommend the fees for licenses, registrations,  and certifications.31.1Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 31.2Board of High Pressure Piping Systems, the commissioner of labor and industry shall 31.3administer and enforce the provisions of this chapter and any rules promulgated pursuant 31.4thereto.31.5    (b) The board shall comply with section 
         15.0597, subdivisions 2 and 4.31.6    (c) The commissioner shall coordinate the board's rulemaking and recommendations 31.7with the recommendations and rulemaking conducted by the other boards created pursuant 31.8to this chapter. The commissioner shall provide staff support to the board. The support 31.9includes professional, legal, technical, and clerical staff necessary to perform rulemaking 31.10and other duties assigned to the board. The commissioner of labor and industry shall 31.11supply necessary office space and supplies to assist the board in its duties.31.12    Sec. 15. [326B.437] REDUCED PRESSURE BACKFLOW PREVENTION 31.13REBUILDERS AND TESTERS.31.14(a) No person shall perform or offer to perform the installation, maintenance, repair, 31.15replacement, or rebuilding of reduced pressure zone backflow prevention assemblies 31.16unless the person obtains a plumbing contractor's license. An individual shall not engage 31.17in the testing, maintenance, repair, or rebuilding of reduced pressure zone backflow 31.18prevention assemblies, as regulated by the Plumbing Code, unless the individual is 31.19certified by the commissioner as a backflow prevention rebuilder.31.20(b) An individual shall not engage in testing of a reduced pressure zone backflow 31.21prevention assembly, as regulated by the Plumbing Code, unless the individual possesses a 31.22backflow prevention rebuilder certificate or is certified by the commissioner as a backflow 31.23prevention tester.31.24(c) Certificates are issued for an initial period of two years and must be renewed 31.25every two years thereafter for as long as the certificate holder installs, maintains, repairs, 31.26rebuilds, or tests reduced pressure zone backflow prevention assemblies. For purposes 31.27of calculating fees under section 326B.092, an initial or renewed backflow prevention 31.28rebuilder or tester certificate shall be considered an entry level license.31.29(d) The Plumbing Board shall adopt expedited rules under section 14.389 that are 31.30related to the certification of backflow prevention rebuilders and backflow prevention 31.31testers. Section 326B.13, subdivision 8, does not apply to these rules. Notwithstanding the 31.3218-month limitation under section 14.125, this authority expires on December 31, 2014.31.33(e) The department shall recognize certification programs that are a minimum of 16 31.34contact hours and include the passage of an examination. The examination must consist of 32.1a practical and a written component. This paragraph expires when the Plumbing Board 32.2adopts rules under paragraph (d).32.3    Sec. 16. Minnesota Statutes 2010, section 326B.438, is amended to read:32.4326B.438 MEDICAL GAS SYSTEMS.32.5    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in 32.6this subdivision have the meanings given them.32.7    (b) "Medical gas" means medical gas as defined under the National Fire Protection 32.8Association NFPA 99C Standard on Gas and Vacuum Systems.32.9    (c) "Medical gas system" means a level 1, 2, or 3 piped medical gas and vacuum 32.10system as defined under the National Fire Protection Association NFPA 99C Standard on 32.11Gas and Vacuum Systems.32.12    Subd. 2. License and certification required.ANo person shall perform or offer 32.13to perform the installation, maintenance, or repair of medical gas systems unless the 32.14person obtains a contractor's license. An individual shall not engage in the installation, 32.15maintenance, or repair of a medical gas system unless the person individual possesses 32.16a current Minnesota master or journeyman plumber's license and is certified by the 32.17commissioner under rules adopted by the Minnesota Plumbing Board. The certification 32.18must be renewed annually biennially for as long as the certificate holder engages in the 32.19installation, maintenance, or repair of medical gas and vacuum systems. If a medical gas 32.20and vacuum system certificate is not renewed within 12 months after its expiration the 32.21medical gas and vacuum certificate is permanently forfeited.32.22    Subd. 3. Exemptions. (a) A person An individual who on August 1, 2010, holds 32.23a valid certificate authorized by the American Society of Sanitary Engineering (ASSE) 32.24in accordance with standards recommended by the National Fire Protection Association 32.25under NFPA 99C is exempt from the requirements of subdivision 2. This exemption 32.26applies only if the person individual maintains a valid certification authorized by the ASSE.32.27    (b) A person An individual who on August 1, 2010, possesses a current Minnesota 32.28master or journeyman plumber's license and a valid certificate authorized by the ASSE 32.29in accordance with standards recommended by the National Fire Protection Association 32.30under NFPA 99C is exempt from the requirements of subdivision 2 and may install, 32.31maintain, and repair a medical gas system. This exemption applies only if a person an 32.32individual maintains a valid Minnesota master or journeyman plumber's license and valid 32.33certification authorized by the ASSE.32.34    Subd. 4. Fees.The fee for a medical gas certificateFor the purpose of calculating 32.35fees under section 326B.092, an initial or renewed medical gas certificate issued by the 33.1commissioner according to subdivision 2 is $30 per year shall be considered a journeyman 33.2level license.33.3    Sec. 17. Minnesota Statutes 2010, section 326B.46, subdivision 1a, is amended to read:33.4    Subd. 1a. Exemptions from licensing. (a) An individual without a contractor 33.5license may do plumbing work on the individual's residence in accordance with 33.6subdivision 1, paragraph (a).33.7(b) An individual who is an employee working on the maintenance and repair of 33.8plumbing equipment, apparatus, or facilities owned or leased by the individual's employer 33.9and which is within the limits of property owned or leased, and operated or maintained by 33.10the individual's employer, shall not be required to maintain a contractor license as long 33.11as the employer has on file with the commissioner a current certificate of responsible 33.12person. The certificate must be signed by the responsible individual. The responsible 33.13individual must be a  master plumber or, in an area of the state that is not a city or town 33.14with a population of more than 5,000 according to the last federal census, a restricted 33.15master plumber,. The certificate must be signed by the responsible individual and must 33.16state that the person signing the certificate is responsible for ensuring that the maintenance 33.17and repair work performed by the employer's employees comply complies with sections 33.18326B.41
          to 
         326B.49, all rules adopted under those sections and sections 
         326B.50 to 33.19326B.59
         , and all orders issued under section 
         326B.082. The employer must pay a filing 33.20fee to file a certificate of responsible person individual with the commissioner. The 33.21certificate shall expire two years from the date of filing. In order to maintain a current 33.22certificate of responsible person individual, the employer must resubmit a certificate of 33.23responsible person individual, with a filing fee, no later than two years from the date of the 33.24previous submittal. The filing of the certificate of responsible person individual does not 33.25exempt any employee of the employer from the requirements of this chapter regarding 33.26individual licensing as a plumber or registration as a plumber's apprentice.33.27(c) If a contractor employs a licensed plumber, the licensed plumber does not need a 33.28separate contractor license to perform plumbing work on behalf of the employer within 33.29the scope of the licensed plumber's license.33.30(d) A person may perform and offer to perform building sewer or water service 33.31installation without a contractor's license if the person is in compliance with the bond and 33.32insurance requirements of subdivision 2.33.33    Sec. 18. Minnesota Statutes 2010, section 326B.46, subdivision 1b, is amended to read:34.1    Subd. 1b. Employment of master plumber or restricted master plumber. (a) 34.2Each contractor must designate a responsible licensed plumber, who shall be responsible 34.3for the performance of all plumbing work in accordance with sections 
         326B.41 to 34.4326B.49
         , all rules adopted under these sections and sections 
         326B.50 to 
         326B.59, and all 34.5orders issued under section 
         326B.082. A plumbing contractor's responsible licensed 34.6plumber individual must be a master plumber. A restricted plumbing contractor's 34.7responsible licensed plumber individual must be a master plumber or a restricted master 34.8plumber. A plumbing contractor license authorizes the contractor to offer to perform 34.9and, through licensed and registered individuals, to perform plumbing work in all areas 34.10of the state. A restricted plumbing contractor license authorizes the contractor to offer 34.11to perform and, through licensed and registered individuals, to perform plumbing work 34.12in all areas of the state except in cities and towns with a population of more than 5,000 34.13according to the last federal census.34.14(b) If the contractor is an individual or sole proprietorship, the responsible licensed 34.15plumber individual must be the individual, proprietor, or managing employee. If the 34.16contractor is a partnership, the responsible licensed plumber individual must be a general 34.17partner or managing employee. If the contractor is a limited liability company, the 34.18responsible licensed plumber individual must be a chief manager or managing employee. 34.19If the contractor is a corporation, the responsible licensed plumber individual must be 34.20an officer or managing employee. If the responsible licensed plumber individual is a 34.21managing employee, the responsible licensed plumber individual must be actively engaged 34.22in performing plumbing work on behalf of the contractor, and cannot be employed in any 34.23capacity as a plumber for any other contractor. An individual may be the responsible 34.24licensed plumber individual for only one contractor.34.25(c) All applications and renewals for contractor licenses shall include a verified 34.26statement that the applicant or licensee has complied with this subdivision.34.27    Sec. 19. Minnesota Statutes 2010, section 326B.46, subdivision 2, is amended to read:34.28    Subd. 2. Bond; insurance.As a condition of licensing, each contractor (a) The 34.29bond and insurance requirements of paragraphs (b) and (c) apply to each person who 34.30performs or offers to perform plumbing work within the state, including any person who 34.31offers to perform or performs sewer or water service installation without a contractor's 34.32license. If the person performs or offers to perform any plumbing work other than sewer 34.33or water service installation, then the person must meet the requirements of paragraphs 34.34(b) and (c) as a condition of holding a contractor's license.35.1(b) Each person who performs or offers to perform plumbing work within the state35.2shall give and maintain bond to the state in the amount of at least $25,000 for (1) all 35.3plumbing work entered into within the state or (2) all plumbing work and subsurface 35.4sewage treatment work entered into within the state. If the bond is for both plumbing work 35.5and subsurface sewage treatment work, the bond must comply with the requirements of 35.6this section and section 
         115.56, subdivision 2, paragraph (e). The bond shall be for the 35.7benefit of persons injured or suffering financial loss by reason of failure to comply with the 35.8requirements of the State Plumbing Code and, if the bond is for both plumbing work and 35.9subsurface sewage treatment work, financial loss by reason of failure to comply with the 35.10requirements of sections 
         115.55 and 
         115.56. The bond shall be filed with the commissioner 35.11and shall be written by a corporate surety licensed to do business in the state.35.12    In addition, as a condition of licensing, each contractor (c) Each person who 35.13performs or offers to perform plumbing work within the state shall have and maintain in 35.14effect public liability insurance, including products liability insurance with limits of at 35.15least $50,000 per person and $100,000 per occurrence and property damage insurance 35.16with limits of at least $10,000. The insurance shall be written by an insurer licensed to 35.17do business in the state of Minnesota and. Each licensed master plumber person who 35.18performs or offers to perform plumbing work within the state shall maintain on file 35.19with the commissioner a certificate evidencing the insurance. In the event of a policy 35.20cancellation, the insurer shall send written notice to the commissioner at the same time 35.21that a cancellation request is received from or a notice is sent to the insured.35.22    Sec. 20. Minnesota Statutes 2010, section 326B.46, subdivision 3, is amended to read:35.23    Subd. 3. Bond and insurance exemption. If a master plumber or restricted 35.24master plumber person who is in compliance with the bond and insurance requirements 35.25of subdivision 2, employs a licensed plumber, the or an individual who has completed 35.26pipe-laying training as prescribed by the commissioner, that employee plumber shall not be 35.27required to meet the bond and insurance requirements of subdivision 2. An individual who 35.28is an employee working on the maintenance and repair of plumbing equipment, apparatus, 35.29or facilities owned or leased by the individual's employer and which is within the limits of 35.30property owned or leased, and operated or maintained by the individual's employer, shall 35.31not be required to meet the bond and insurance requirements of subdivision 2.35.32    Sec. 21. Minnesota Statutes 2010, section 326B.47, subdivision 1, is amended to read:36.1    Subdivision 1. Registration; supervision; records. (a) All unlicensed individuals, 36.2other than plumber's apprentices and individuals who have completed pipe-laying training 36.3as prescribed by the commissioner, must be registered under subdivision 3.36.4(b) A plumber's apprentice or registered unlicensed individual is authorized to 36.5assist in the installation of plumbing only while under the direct supervision of a master, 36.6restricted master, journeyman, or restricted journeyman plumber. The master, restricted 36.7master, journeyman, or restricted journeyman plumber is responsible for ensuring that all 36.8plumbing work performed by the plumber's apprentice or registered unlicensed individual 36.9complies with the plumbing code. The supervising master, restricted master, journeyman, 36.10or restricted journeyman must be licensed and must be employed by the same employer 36.11as the plumber's apprentice or registered unlicensed individual. Licensed individuals 36.12shall not permit plumber's apprentices or registered unlicensed individuals to perform 36.13plumbing work except under the direct supervision of an individual actually licensed to 36.14perform such work. Plumber's apprentices and registered unlicensed individuals shall not 36.15supervise the performance of plumbing work or make assignments of plumbing work 36.16to unlicensed individuals.36.17(c) Contractors employing plumber's apprentices or registered unlicensed individuals 36.18to perform plumbing work shall maintain records establishing compliance with this 36.19subdivision that shall identify all plumber's apprentices and registered unlicensed 36.20individuals performing plumbing work, and shall permit the department to examine and 36.21copy all such records.36.22    Sec. 22. Minnesota Statutes 2010, section 326B.47, subdivision 3, is amended to read:36.23    Subd. 3. Registration, rules, applications, renewals, and fees.  An unlicensed 36.24individual may register by completing and submitting to the commissioner an application 36.25form provided by the commissioner, with all fees required by section 
         326B.092. A 36.26completed application form must state the date the individual began training, the 36.27individual's age, schooling, previous experience, and employer, and other information 36.28required by the commissioner. The Plumbing Board may prescribe rules, not inconsistent 36.29with this section, for the registration of unlicensed individuals. Applications for initial 36.30registration may be submitted at any time. Registration must be renewed annually and 36.31shall be for the period from July 1 of each year to June 30 of the following year.36.32    Sec. 23. Minnesota Statutes 2010, section 326B.49, subdivision 1, is amended to read:36.33    Subdivision 1. Application, examination, and license fees. (a) Applications for 36.34master and journeyman plumber's licenses shall be made to the commissioner, with 37.1all fees required by section 
         326B.092. Unless the applicant is entitled to a renewal, 37.2the applicant shall be licensed by the commissioner only after passing a satisfactory 37.3examination developed and administered by the commissioner, based upon rules adopted 37.4by the Plumbing Board, showing fitness.37.5(b) All initial journeyman plumber's licenses shall be effective for more than one 37.6calendar year and shall expire on December 31 of the year after the year in which the 37.7application is made. All master plumber's licenses shall expire on December 31 of each 37.8even-numbered year after issuance or renewal. The commissioner shall in a manner 37.9determined by the commissioner, without the need for any rulemaking under chapter 14, 37.10phase in the renewal of master and journeyman plumber's licenses from one year to two 37.11years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be 37.12two-year licenses.37.13(c) Applications for contractor licenses shall be made to the commissioner, with all 37.14fees required by section 
         326B.092. All contractor licenses shall expire on December 31 of 37.15each odd-numbered year after issuance or renewal.37.16(d) For purposes of calculating license fees and renewal license fees required under 37.17section 
         326B.092:37.18(1) the following licenses shall be considered business licenses: plumbing contractor 37.19and restricted plumbing contractor;37.20(2) the following licenses shall be considered master licenses: master plumber and 37.21restricted master plumber;37.22(3) the following licenses shall be considered journeyman licenses: journeyman 37.23plumber and restricted journeyman plumber; and37.24(4) the registration of a plumber's apprentice under section 
         326B.47, subdivision 3, 37.25shall be considered an entry level license.37.26(e) For each filing of a certificate of responsible person individual by an employer, 37.27the fee is $100.37.28(f) The commissioner shall charge each person giving bond under section 326B.46, 37.29subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a 37.30licensed contractor.37.31    Sec. 24. Minnesota Statutes 2010, section 326B.56, subdivision 1, is amended to read:37.32    Subdivision 1. Bonds. (a) As a condition of licensing, each water conditioning 37.33contractor shall give and maintain a bond to the state as described in paragraph (b). 37.34No applicant for a water conditioning contractor or installer license who maintains the 38.1bond under paragraph (b) shall be otherwise required to meet the bond requirements of 38.2any political subdivision.38.3    (b) Each bond given to the state under this subdivision shall be in the total sum of 38.4$3,000 conditioned upon the faithful and lawful performance of all water conditioning 38.5installation or servicing done within the state. The bond shall be for the benefit of 38.6persons suffering injuries or damages due to the work. The bond shall be filed with the 38.7commissioner and shall be written by a corporate surety licensed to do business in this 38.8state. The bond must remain in effect at all times while the application is pending and 38.9while the license is in effect.38.10    Sec. 25. Minnesota Statutes 2010, section 326B.58, is amended to read:38.11326B.58 FEES; RENEWAL.38.12    (a) Each initial water conditioning master and water conditioning journeyman 38.13license shall be effective for more than one calendar year and shall expire on December 31 38.14of the year after the year in which the application is made.38.15(b) The commissioner shall in a manner determined by the commissioner, without 38.16the need for any rulemaking under chapter 14, phase in the renewal of water conditioning 38.17master and journeyman licenses from one year to two years. By June 30, 2011, all 38.18renewed water conditioning contractor and installer licenses shall be two-year licenses. 38.19The Plumbing Board may by rule prescribe for the expiration and renewal of licenses.38.20(c) All water conditioning contractor licenses shall expire on December 31 of the 38.21year after issuance or renewal.38.22(d) For purposes of calculating license fees and renewal fees required under section 38.23326B.092
         :38.24(1) a water conditioning journeyman license shall be considered a journeyman 38.25license;38.26(2) a water conditioning master license shall be considered a master license; and38.27(3) a water conditioning contractor license shall be considered a business license.38.28    Sec. 26. Minnesota Statutes 2010, section 326B.82, subdivision 2, is amended to read:38.29    Subd. 2. Appropriate and related knowledge. "Appropriate and related 38.30knowledge" means facts, information, or principles that are clearly relevant to the licensee 38.31in performinglicensee's responsibilities under a license issued by the commissioner. 38.32These facts, information, or principles must convey substantive and procedural knowledge 38.33as it relates to postlicensing issues and must be relevant to the technical aspects of a 38.34particular area of continuing education regulated industry.39.1    Sec. 27. Minnesota Statutes 2010, section 326B.82, subdivision 3, is amended to read:39.2    Subd. 3. Classroom hour. "Classroom hour" means a 50-minute hour 50 minutes of 39.3educational content.39.4    Sec. 28. Minnesota Statutes 2010, section 326B.82, subdivision 7, is amended to read:39.5    Subd. 7. Medical hardship. "Medical hardship" includes means a documented 39.6physical disability or medical condition.39.7    Sec. 29. Minnesota Statutes 2010, section 326B.82, subdivision 9, is amended to read:39.8    Subd. 9. Regulated industries industry. "Regulated industries industry" means 39.9residential contracting, residential remodeling, or residential roofing. Each of these is a 39.10regulated industry any business, trade, profession, or occupation that requires a license 39.11issued under this chapter or chapter 327B as a condition of doing business in Minnesota.39.12    Sec. 30. Minnesota Statutes 2010, section 326B.821, subdivision 1, is amended to read:39.13    Subdivision 1. Purpose. The purpose of this section is to establish standards 39.14for residential building contractor continuing education. The standards must include 39.15requirements for continuing education in the implementation of energy codes or energy 39.16conservation measures applicable to residential buildings.39.17    Sec. 31. Minnesota Statutes 2010, section 326B.821, subdivision 5, is amended to read:39.18    Subd. 5. Content. (a) Continuing education consists of approved courses that 39.19impart appropriate and related knowledge in the residential construction industry regulated 39.20industries pursuant to sections 326B.802 to 326B.885 this chapter and other relevant39.21applicable federal and state laws, rules, and regulations. Courses may include relevant 39.22materials that are included in licensing exams subject to the limitations imposed in 39.23subdivision 11. The burden of demonstrating that courses impart appropriate and related 39.24knowledge is upon the person seeking approval or credit.39.25    (b) Except as required for Internet continuing education, course examinations will 39.26not be required for continuing education courses unless they are required by the sponsor.39.27    (c) Textbooks are not required to be used for continuing education courses. If 39.28textbooks are not used as part of the course, the sponsor must provide students with a 39.29syllabus containing, at a minimum, the course title, the times and dates of the course 39.30offering, the name, address, and telephone number of the course sponsor and, the name 39.31and affiliation of the instructor, and a detailed outline of the subject materials to be 40.1covered. Any written or printed material given to students must be of readable quality and 40.2contain accurate and current information.40.3    (d) Upon completion of an approved course, licensees shall earn one hour of 40.4continuing education credit for each classroom hour approved by the commissioner. One 40.5credit hour of continuing education is equivalent to 50 minutes of educational content.40.6Each continuing education course must be attended in its entirety in order to receive credit 40.7for the number of approved hours. Courses may be approved for full or partial credit, 40.8and for more than one regulated industry.40.9    (e) Continuing education credit in an approved course shall be awarded to presenting 40.10instructors on the basis of one credit for each hour of preparation for the duration of the 40.11initial presentation. Continuing education credit may not be earned if the licensee has 40.12previously obtained credit for the same course as a licensee or as an instructor within the 40.13three years immediately prior credits for completion of an approved course may only be 40.14used once for renewal of a specific license.40.15    (e)(f) Courses will be approved using the following guidelines:40.16(1) course content must demonstrate significant intellectual or practical content and 40.17deal with matters directly related to the practice of residential construction in the regulated 40.18industry, workforce safety, or the business of running a residential construction company40.19in the regulated industry. Courses may also address the professional responsibility or 40.20ethical obligations of residential contractors to homeowners and suppliers a licensee 40.21related to work in the regulated industry;40.22(2) the following courses may be automatically approved if they are specifically 40.23designed for the residential construction regulated industry and are in compliance with 40.24paragraph (f) (g):40.25(i) courses approved by the Minnesota Board of Continuing Legal Education; or40.26(ii) courses approved by the International Code Council, National Association of 40.27Home Building, or other nationally recognized professional organization of the residential 40.28construction regulated industry; and40.29(3) courses must be presented and attended in a suitable classroom or construction 40.30setting, except for Internet education courses which must meet the requirements of 40.31subdivision 5a. Courses presented via video recording, simultaneous broadcast, or 40.32teleconference may be approved provided the sponsor is available at all times during the 40.33presentation, except for Internet education courses which must meet the requirements 40.34of subdivision 5a.40.35(f)(g) The following courses will not be approved for credit:40.36    (1) courses designed solely to prepare students for a license examination;41.1    (2) courses in mechanical office skills, including typing, speed reading, or other 41.2machines or equipment. Computer courses are allowed, if appropriate and related to the 41.3residential construction regulated industry;41.4    (3) courses in sales promotion, including meetings held in conjunction with the 41.5general business of the licensee;41.6    (4) courses in motivation, salesmanship, psychology, or personal time management;41.7    (5) courses that are primarily intended to impart knowledge of specific products of 41.8specific companies, if the use of the product or products relates to the sales promotion 41.9or marketing of one or more of the products discussed; or41.10(6) courses where any of the educational content of the course is the State Building 41.11Code that include code provisions that have not been adopted into the State Building 41.12Code unless the course materials clarify whether or notthat the code provisions have 41.13been officially adopted into a future version of the State Building Code and the effective 41.14date of enforcement, if applicable.41.15    Sec. 32. Minnesota Statutes 2010, section 326B.821, subdivision 5a, is amended to 41.16read:41.17    Subd. 5a. Internet continuing education. (a) Minnesota state colleges and 41.18universities that are accredited to provide Internet education by the Higher Learning 41.19Commission are exempt from the requirements of this subdivision.41.20(b) The design and delivery of an Internet continuing education course must be 41.21approved by the International Distance Education Certification Center (IDECC) before 41.22the course is submitted for the commissioner's approval. The IDECC approval must 41.23accompany the course submitted.41.24(b)(c) An Internet continuing education course must:41.25(1) specify the minimum computer system requirements;41.26(2) provide encryption that ensures that all personal information, including the 41.27student's name, address, and credit card number, cannot be read as it passes across the 41.28Internet;41.29(3) include technology to guarantee seat time;41.30(4) include a high level of interactivity;41.31(5) include graphics that reinforce the content;41.32(6) include the ability for the student to contact an instructor or course sponsor 41.33within a reasonable amount of time;41.34(7) include the ability for the student to get technical support within a reasonable 41.35amount of time;42.1(8) include a statement that the student's information will not be sold or distributed 42.2to any third party without prior written consent of the student. Taking the course does not 42.3constitute consent;42.4(9) be available 24 hours a day, seven days a week, excluding minimal downtime 42.5for updating and administration, except that this provision does not apply to live courses 42.6taught by an actual instructor and delivered over the Internet;42.7(10) provide viewing access to the online course at all times to the commissioner, 42.8excluding minimal downtime for updating and administration;42.9(11) include a process to authenticate the student's identity;42.10(12) inform the student and the commissioner how long after its purchase a course 42.11will be accessible;42.12(13) inform the student that license education credit will not be awarded for taking 42.13the course after it loses its status as an approved course;42.14(14) provide clear instructions on how to navigate through the course;42.15(15) provide automatic bookmarking at any point in the course;42.16(16) provide questions after each unit or chapter that must be answered before the 42.17student can proceed to the next unit or chapter;42.18(17) include a reinforcement response when a quiz question is answered correctly;42.19(18) include a response when a quiz question is answered incorrectly;42.20(19) include a final examination in which the student must correctly answer 70 42.21percent of the questions;42.22(20) allow the student to go back and review any unit at any time, except during the 42.23final examination;42.24(21) provide a course evaluation at the end of the course. At a minimum, the 42.25evaluation must ask the student to report any difficulties caused by the online education 42.26delivery method;42.27(22) provide a completion certificate when the course and exam have been completed 42.28and the provider has verified the completion. Electronic certificates are sufficient and shall 42.29include the name of the provider, date and location of the course, educational program 42.30identification that was provided by the department, hours of instruction or continuing 42.31education hours, and licensee's or attendee's name and license, certification, or registration 42.32number or the last four digits of the licensee's or attendee's Social Security number; and42.33(23) allow the commissioner the ability to electronically review the class to 42.34determine if credit can be approved.43.1(c)(d) The final examination must be either an encrypted online examination or a 43.2paper examination that is monitored by a proctor who certifies that the student took the 43.3examination.43.4    Sec. 33. Minnesota Statutes 2010, section 326B.821, subdivision 6, is amended to read:43.5    Subd. 6. Course approval. (a) Courses must be approved by the commissioner 43.6in advance and will be approved on the basis of the applicant's compliance with the 43.7provisions of this section relating to continuing education in the regulated industries. The 43.8commissioner shall make the final determination as to the approval and assignment of 43.9credit hours for courses. Courses must be at least one hour in length.43.10    Licensees requesting credit for continuing education courses that have not been 43.11previously approved by the commissioner shall, on a form prescribed by the commissioner, 43.12submit an application for approval of continuing education credit accompanied by a 43.13nonrefundable fee of $20 for each course to be reviewed. To be approved, courses must be 43.14in compliance with the provisions of this section governing the types of courses that will 43.15and will not be approved.43.16    Approval will not be granted for time spent on meals or other unrelated activities. 43.17Breaks may not be accumulated in order to dismiss the class early. Classes shall not be 43.18offered by a provider to any one student for longer than eight hours in one day, excluding 43.19meal breaks.43.20    (b) Application for course approval must be submitted on a form approved by the 43.21commissioner at least 30 days before the course offering.43.22    (c) Approval must be granted for a subsequent offering of identical continuing 43.23education courses without requiring a new application if a notice of the subsequent 43.24offering is filed with the commissioner at least 30 days in advance of the date the course is 43.25to be held. The commissioner shall deny future offerings of courses if they are found not 43.26to be in compliance with the laws relating to course approval.43.27    Sec. 34. Minnesota Statutes 2010, section 326B.821, subdivision 7, is amended to read:43.28    Subd. 7. Courses open to all. All course offerings must be open to any interested 43.29individuals. Access may be restricted by the sponsor based on class size only. Courses 43.30must shall not be approved if attendance is restricted to any particular group of people, 43.31except for company-sponsored courses allowed by applicable law.43.32    Sec. 35. Minnesota Statutes 2010, section 326B.821, subdivision 8, is amended to read:44.1    Subd. 8. Course sponsor. (a) Each course of study shall have at least one sponsor, 44.2approved by the commissioner, who is responsible for supervising the program and 44.3ensuring compliance with all relevant law. Sponsors may engage an additional approved 44.4sponsor in order to assist the sponsor or to act as a substitute for the sponsor in the event 44.5of an emergency or illness.44.6(b) Sponsors must submit an application and sworn statement stating they agree to 44.7abide by the requirements of this section and any other applicable statute or rule pertaining 44.8to residential construction continuing education in the regulated industry.44.9(c) A sponsor may also be an instructor.44.10(d) Failure to comply with requirementsparagraph (b) may result in loss of sponsor 44.11approval for up to two years in accordance with section 
         326B.082.44.12    Sec. 36. Minnesota Statutes 2010, section 326B.821, subdivision 9, is amended to read:44.13    Subd. 9. Responsibilities. A sponsor is responsible for:44.14    (1) ensuring compliance with all laws and rules relating to continuing educational 44.15offerings governed by the commissioner;44.16    (2) ensuring that students are provided with current and accurate information relating 44.17to the laws and rules governing their licensed activity the regulated industry;44.18    (3) supervising and evaluating courses and instructors. Supervision includes 44.19ensuring that all areas of the curriculum are addressed without redundancy and that 44.20continuity is present throughout the entire course;44.21    (4) ensuring that instructors are qualified to teach the course offering;44.22    (5) furnishing the commissioner, upon request, with copies of course and instructor44.23evaluations and. Evaluations must be completed by students at the time the course is 44.24offered;44.25(6) furnishing the commissioner, upon request, with copies of the qualifications of 44.26instructors. Evaluations must be completed by students at the time the course is offered 44.27and by sponsors within five days after the course offering;44.28    (6)(7) investigating complaints related to course offerings or instructors. A copy 44.29of the written complaint must be sent to the commissioner within ten days of receipt of 44.30the complaint and a copy of the complaint resolution must be sent not more than ten 44.31days after resolution is reached;44.32    (7)(8) maintaining accurate records relating to course offerings, instructors, tests 44.33taken by students if required, and student attendance for a period of three years from the 44.34date on which the course was completed. These records must be made available to the 44.35commissioner upon request. In the event the sponsor ceases operations before termination 45.1of the sponsor application, the sponsor must provide to the commissioner digital copies of 45.2all course and attendance records of courses held for the previous three years;45.3    (8)(9) attending workshops or instructional programs as reasonably required by 45.4the commissioner;45.5    (9)(10) providing course completion certificates within ten days of, but not before, 45.6completion of the entire course. A sponsor may require payment of the course tuition as a 45.7condition of receiving the course completion certificate. Course completion certificates 45.8must be completed in their entirety. Course completion certificates mustand shall contain 45.9the following:45.10(i) the statement: "If you have any comments about this course offering, please mail 45.11them to the Minnesota Department of Labor and Industry.";45.12(ii) the current address of the department must be included. A sponsor may require 45.13payment of the course tuition as a condition for receiving the course completion certificate, 45.14name of the provider, date and location of the course, educational program identification 45.15provided by the department, and hours of instruction or continuing education hours; and45.16(iii) the licensee's or attendee's name and license, certificate, or registration number 45.17or the last four digits of the licensee's or attendee's Social Security number; and45.18    (10)(11) notifying the commissioner in writing within ten days of any change in the 45.19information in an application for approval on file with the commissioner.45.20    Sec. 37. Minnesota Statutes 2010, section 326B.821, subdivision 10, is amended to 45.21read:45.22    Subd. 10. Instructors. (a) Each continuing education course shall have an instructor 45.23who is qualified by education, training, or experience to ensure competent instruction. 45.24Failure to have only qualified instructors teach at an approved course offering will result in 45.25loss of course approval. Sponsors are responsible to ensure that an instructor is qualified 45.26to teach the course offering.45.27    (b) Qualified continuing education instructors must have one of the following 45.28qualifications:45.29    (1) four years' practical experience in the subject area being taught;45.30    (2) a college or graduate degree in the subject area being taught;45.31(3) direct experience in the development of laws, rules, or regulations related to the 45.32residential construction regulated industry; or45.33(4) demonstrated expertise in the subject area being taught. Instructors providing 45.34instruction related to electricity, plumbing, or high pressure piping systems must comply 46.1with all applicable continuing education rules adopted by the Board of Electricity, the 46.2Plumbing Board, or the Board of High Pressure Piping Systems.46.3    (c) ApprovedQualified continuing education instructors are responsible for:46.4    (1) compliance with all laws and rules relating to continuing education;46.5    (2) providing students with current and accurate information;46.6    (3) maintaining an atmosphere conducive to learning in the classroom;46.7    (4) verifying attendance of students, and certifying course completion;46.8    (5) providing assistance to students and responding to questions relating to course 46.9materials; and46.10    (6) attending the workshops or instructional programs that are required by the 46.11commissioner.46.12    Sec. 38. Minnesota Statutes 2010, section 326B.821, subdivision 11, is amended to 46.13read:46.14    Subd. 11. Prohibited practices for sponsors and instructors. (a) In connection 46.15with an approved continuing education course, sponsors and instructors shall not:46.16    (1) recommend or, promote, or disparage the specific services, products, processes, 46.17procedures, or practices of a particular business person in the regulated industry;46.18    (2) encourage or recruit individuals students to engage the services of, or become 46.19associated with, a particular business;46.20    (3) use materials for the sole purpose of promoting a particular business;46.21    (4) require students to participate in other programs or services offered by an 46.22instructor or sponsor;46.23    (5) attempt, either directly or indirectly, to discover questions or answers on an 46.24examination for a license;46.25    (6) disseminate to any other person specific questions, problems, or information 46.26known or believed to be included in licensing examinations;46.27    (7) misrepresent any information submitted to the commissioner;46.28    (8) fail to reasonably cover, or ensure coverage of, all points, issues, and concepts 46.29contained in the course outline approved by the commissioner during the approved 46.30instruction; or46.31    (9) issue inaccurate course completion certificates.46.32    (b) Sponsors shall notify the commissioner within ten days of a felony or gross 46.33misdemeanor conviction or of disciplinary action taken against an occupational or 46.34professional license held by the sponsor or an instructor teaching an approved course. The 47.1notification conviction or disciplinary action shall be grounds for the commissioner to 47.2withdraw the approval of the sponsor and to disallow the use of the sponsor or instructor.47.3    Sec. 39. Minnesota Statutes 2010, section 326B.821, subdivision 12, is amended to 47.4read:47.5    Subd. 12. Fees Course tuition.Fees Tuition for an approved course of study 47.6and related materials must be clearly identified to students. In the event that a course is 47.7canceled for any reason, all fees tuition must be returned within 15 days from the date of 47.8cancellation. In the event that a course is postponed for any reason, students shall be given 47.9the choice of attending the course at a later date or having their fees tuition refunded in 47.10full within 15 days from the date of postponement. If a student is unable to attend a course 47.11or cancels the registration in a course, sponsor policies regarding refunds shall govern.47.12    Sec. 40. Minnesota Statutes 2010, section 326B.821, subdivision 15, is amended to 47.13read:47.14    Subd. 15. Advertising courses. (a) Paragraphs (b) to (g) govern the advertising 47.15of continuing education courses.47.16    (b) Advertising must be truthful and not deceptive or misleading. Courses may 47.17not be advertised as approved for continuing education credit unless approval has been 47.18granted in writing by the commissioner.47.19    (c) Once a course is approved, all advertisement, pamphlet, circular, or other similar 47.20materials pertaining to an approved course circulated or distributed in this state, must 47.21prominently display the following statement:47.22    "This course has been approved by the Minnesota Department of Labor and Industry 47.23for ....... (approved number of hours) hours for residential contractor ....... (regulated 47.24industry) continuing education."47.25    (d) Advertising of approved courses must be clearly distinguishable from the 47.26advertisement of other nonapproved courses and services.47.27    (e) Continuing education courses may not be advertised before approval unless the 47.28course is described in any advertising as "approval pending." The sponsor must verbally 47.29notify licensees students before commencement of the course if the course has been 47.30denied credit, has not been approved for credit, or has only been approved for partial 47.31credit by the commissioner.47.32    (f) The number of hours for which a course has been approved must be prominently 47.33displayed on an advertisement for the course. If the course offering is longer than the 48.1number of hours of credit to be given, it must be clear that credit is not earned for the 48.2entire course.48.3    (g) The course approval number must not be included in any advertisement.48.4    Sec. 41. Minnesota Statutes 2010, section 326B.821, subdivision 16, is amended to 48.5read:48.6    Subd. 16. Notice to students. At the beginning of each approved offering, the 48.7following notice must be handed out in printed form or must be read to students:48.8    "This educational offering is recognized by the Minnesota Department of Labor and 48.9Industry as satisfying ....... (insert number of hours approved) hours of credit toward 48.10residential contractor (insert regulated industry) continuing education requirements."48.11    Sec. 42. Minnesota Statutes 2010, section 326B.821, subdivision 18, is amended to 48.12read:48.13    Subd. 18. Falsification of reports or certificates. A licensee, its qualified person48.14qualifying individual, or an applicant found to have falsified an education report or 48.15certificate to the commissioner shall be considered to have violated the laws relating to 48.16the regulated industry for which the person has a license and shall be subject to censure, 48.17limitation, condition, suspension, or revocation of the license or denial of the application 48.18for licensure the enforcement provisions of section 326B.082.48.19    The commissioner reserves the right to audit a licensee's continuing education 48.20records.48.21    Sec. 43. Minnesota Statutes 2010, section 326B.821, subdivision 19, is amended to 48.22read:48.23    Subd. 19. Waivers and extensions.If a licensee provides documentation to the 48.24commissioner that the licensee or its qualifying person is unable, and will continue to be 48.25unable, to attend actual classroom course work because of a physical disability, medical 48.26condition, or similar reason, attendance at continuing education courses shall be waived 48.27for a period not to exceed one year. The commissioner shall require that the licensee or 48.28its qualifying person satisfactorily complete a self-study program to include reading a 48.29sufficient number of textbooks, or listening to a sufficient number of tapes, related to the 48.30residential building contractor industry, as would be necessary for the licensee to satisfy 48.31continuing educational credit hour needs. The commissioner shall award the licensee 48.32credit hours for a self-study program by determining how many credit hours would 48.33be granted to a classroom course involving the same material and giving the licensee 49.1the same number of credit hours under this section. The licensee may apply each year 49.2for a new waiver upon the same terms and conditions as were necessary to secure the 49.3original waiver, and must demonstrate that in subsequent years, the licensee was unable to 49.4complete actual classroom course work. The commissioner may request documentation 49.5of the condition upon which the request for waiver is based as is necessary to satisfy 49.6the commissioner of the existence of the condition and that the condition does preclude 49.7attendance at continuing education courses.49.8    Upon written proof demonstrating a medical hardship, the commissioner shall 49.9extend, for up to 90 days, the time period during which the continuing education must be 49.10successfully completed. Loss of income from either attendance at courses or cancellation 49.11of a license is not a bona fide financial hardship. Requests for extensions must be 49.12submitted to the commissioner in writing no later than 60 days before the education is 49.13due and must include an explanation with verification of the hardship, plus verification of 49.14enrollment at an approved course of study on or before the extension period expires.49.15    Sec. 44. Minnesota Statutes 2010, section 326B.821, subdivision 20, is amended to 49.16read:49.17    Subd. 20. Reporting requirements.Required Continuing education credits must 49.18be reported by the sponsor in a manner prescribed by the commissioner. Licensees are 49.19responsible for maintaining copies of course completion certificates.49.20    Sec. 45. Minnesota Statutes 2010, section 326B.821, subdivision 22, is amended to 49.21read:49.22    Subd. 22. Continuing education approval.  Continuing education courses must be 49.23approved in advance by the commissioner of labor and industry. "Sponsor" means any 49.24person or entity offering approved education.49.25    Sec. 46. Minnesota Statutes 2010, section 326B.821, subdivision 23, is amended to 49.26read:49.27    Subd. 23. Continuing education fees. The following fees shall be paid to the 49.28commissioner:49.29    (1) initial course approval, $20 for each hour or fraction of one hour of continuing 49.30education course approval sought. Initial course approval expires on the last day of the 49.3124th 36th month after the course is approved;49.32    (2) renewal of course approval, $20 per course. Renewal of course approval expires 49.33on the last day of the 24th month after the course is renewed;50.1    (3)(2) initial sponsor approval, $100. Initial sponsor approval expires on the last 50.2day of the 24th month after the sponsor is approved; and50.3    (4)(3) renewal of sponsor approval, $20 $100. Renewal of sponsor approval expires 50.4on the last day of the 24th month after the sponsor is renewed.50.5    Sec. 47. Minnesota Statutes 2010, section 326B.865, is amended to read:50.6326B.865 SIGN CONTRACTOR; BOND.50.7    (a) A sign contractor may post a compliance bond with the commissioner, 50.8conditioned that the sign contractor shall faithfully perform duties and comply with laws, 50.9ordinances, rules, and contracts entered into for the installation of signs. The bond must 50.10be renewed biennially and maintained for so long as determined by the commissioner. 50.11The aggregate liability of the surety on the bond to any and all persons, regardless of the 50.12number of claims made against the bond, may not exceed the annual amount of the bond. 50.13The bond may be canceled as to future liability by the surety upon 30 days' written notice 50.14mailed to the commissioner by United States mail.50.15    (b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a 50.16local unit of government that requires sign contractors to post a compliance bond. The 50.17bond is in lieu of any compliance bond required by a local unit of government.50.18    (c) For purposes of this section, "sign" means a device, structure, fixture, or 50.19placard using graphics, symbols, or written copy that is erected on the premises of an 50.20establishment including the name of the establishment or identifying the merchandise, 50.21services, activities, or entertainment available on the premises.50.22(d) Each person giving bond under this section shall pay a biennial bond filing fee of 50.23$100 to the commissioner of labor and industry. 50.24EFFECTIVE DATE.This section is effective January 1, 2012. 50.25    Sec. 48. Minnesota Statutes 2010, section 326B.89, subdivision 6, is amended to read:50.26    Subd. 6. Verified application. To be eligible for compensation from the fund, an 50.27owner or lessee shall serve on the commissioner a verified application for compensation 50.28on a form approved by the commissioner. The application shall verify the following 50.29information:50.30    (1) the specific grounds upon which the owner or lessee seeks to recover from 50.31the fund:50.32    (2) that the owner or the lessee has obtained a final judgment in a court of competent 50.33jurisdiction against a licensee licensed under section 
         326B.83;51.1    (3) that the final judgment was obtained against the licensee on the grounds 51.2of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of 51.3performance that arose directly out of a contract directly between the licensee and the 51.4homeowner or lessee that was entered into prior to the cause of action and that occurred 51.5when the licensee was licensed and performing any of the special skills enumerated under 51.6section 
         326B.802, subdivision 15;51.7    (4) the amount of the owner's or the lessee's actual and direct out-of-pocket loss on 51.8the owner's residential real estate, on residential real estate leased by the lessee, or on new 51.9residential real estate that has never been occupied or that was occupied by the licensee 51.10for less than one year prior to purchase by the owner;51.11    (5) that the residential real estate is located in Minnesota;51.12    (6) that the owner or the lessee is not the spouse of the licensee or the personal 51.13representative of the licensee;51.14    (7) the amount of the final judgment, any amount paid in satisfaction of the final 51.15judgment, and the amount owing on the final judgment as of the date of the verified 51.16application;51.17    (8) that the owner or lessee has diligently pursued remedies against all the judgment 51.18debtors and all other persons liable to the judgment debtor in the contract for which the 51.19owner or lessee seeks recovery from the fund; and51.20    (9) that the verified application is being served within two years after the judgment 51.21became final.51.22    The verified application must include documents evidencing the amount of the 51.23owner's or the lessee's actual and direct out-of-pocket loss. The owner's and the lessee's 51.24actual and direct out-of-pocket loss shall not include any attorney fees, litigation costs 51.25or fees, interest on the loss, and interest on the final judgment obtained as a result of the 51.26loss or any costs not directly related to the value difference between what was contracted 51.27for and what was provided. Any amount paid in satisfaction of the final judgment shall 51.28be applied to the owner's or lessee's actual and direct out-of-pocket loss. An owner or 51.29lessee may serve a verified application regardless of whether the final judgment has been 51.30discharged by a bankruptcy court. A judgment issued by a court is final if all proceedings 51.31on the judgment have either been pursued and concluded or been forgone, including all 51.32reviews and appeals. For purposes of this section, owners who are joint tenants or tenants 51.33in common are deemed to be a single owner. For purposes of this section, owners and 51.34lessees eligible for payment of compensation from the fund shall not include government 51.35agencies, political subdivisions, financial institutions, and any other entity that purchases, 51.36guarantees, or insures a loan secured by real estate.52.1    Sec. 49. Minnesota Statutes 2010, section 326B.89, subdivision 8, is amended to read:52.2    Subd. 8. Administrative hearing. If an owner or a lessee timely serves a request 52.3for hearing under subdivision 7, the commissioner shall request that an administrative law 52.4judge be assigned and that a hearing be conducted under the contested case provisions of 52.5chapter 14 within 45 days after the commissioner received the request for hearing, unless 52.6the parties agree to a later date. The commissioner must notify the owner or lessee of the 52.7time and place of the hearing at least 15 days before the hearing. Upon petition of the 52.8commissioner, the administrative law judge shall continue the hearing up to 60 days and 52.9upon a showing of good cause may continue the hearing for such additional period as the 52.10administrative law judge deems appropriate.52.11At the hearing the owner or the lessee shall have the burden of proving by substantial 52.12evidence under subdivision 6, clauses (1) to (8). Whenever an applicant's judgment 52.13is by default, stipulation, or consent, or whenever the action against the licensee was 52.14defended by a trustee in bankruptcy, the applicant shall have the burden of proving the 52.15cause of action for fraudulent, deceptive, or dishonest practices, conversion of funds, or 52.16failure of performance. Otherwise, the judgment shall create a rebuttable presumption 52.17of the fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of 52.18performance. This presumption affects the burden of producing evidence.52.19The administrative law judge shall issue findings of fact, conclusions of law, and 52.20order. If the administrative law judge finds that compensation should be paid to the owner 52.21or the lessee, the administrative law judge shall order the commissioner to make payment 52.22from the fund of the amount it finds to be payable pursuant to the provisions of and in 52.23accordance with the limitations contained in this section. The order of the administrative 52.24law judge shall constitute the final decision of the agency in the contested case. The 52.25commissioner or the owner or lessee may seek judicial review of the administrative law 52.26judge's findings of fact, conclusions of law, and order shall be in accordance with sections 52.2714.63
          to 
         14.69.52.28    Sec. 50. Minnesota Statutes 2010, section 327.32, subdivision 1a, is amended to read:52.29    Subd. 1a. Requirement; used manufactured homes. No person shall sell or 52.30offer for sale in this state any used manufactured home manufactured after June 14, 52.311976, or install for occupancy any used manufactured home manufactured after June 52.3214, 1976, unless the used manufactured home complies with the Notice of Compliance 52.33Form as provided in this subdivision. If manufactured after June 14, 1976, the home 52.34must bear a label as required by the secretary. The Notice of Compliance Form shall be 52.35signed by the seller and purchaser indicating which party is responsible for either making 53.1or paying for any necessary corrections prior to the sale and transferring ownership of 53.2the manufactured home.53.3The Notice of Compliance Form shall be substantially in the following form:53.4"Notice of Compliance Form as required in Minnesota Statutes, 53.5section 
            327.32, subdivision 153.6This notice must be completed and signed by the purchaser(s) and the seller(s) of the 53.7used manufactured home described in the purchase agreement and on the bottom of this 53.8notice before the parties transfer ownership of a used manufactured home constructed 53.9after June 14, 1976.53.10Electric ranges and clothes dryers must have required four-conductor cords and plugs. For 53.11the purpose of complying with the requirements of section 327B.06, a licensed retailer or 53.12limited retailer shall retain at least one copy of the form required under this subdivision.

53.13Complies ..........Correction required ..........53.14Initialed by Responsible Party: Buyer ..........Seller ..........

53.15Solid fuel-burning fireplaces or stoves must be listed for use in manufactured homes, Code 53.16of Federal Regulations, title 24, section 3280.709 (g), and installed correctly in accordance 53.17with their listing or standards (i.e., chimney, doors, hearth, combustion, or intake, etc., 53.18Code of Federal Regulations, title 24, section 3280.709 (g)).

53.19Complies ..........Correction required ..........53.20Initialed by Responsible Party: Buyer ..........Seller ..........

53.21Gas water heaters and furnaces must be listed for manufactured home use, Code of Federal 53.22Regulations, title 24, section 3280.709 (a) and (d)(1) and (2), and installed correctly, in 53.23accordance with their listing or standards.

53.24Complies ..........Correction required ..........53.25Initialed by Responsible Party: Buyer ..........Seller ..........

53.26Smoke alarms are required to be installed and operational in accordance with Code of 53.27Federal Regulations, title 24, section 3280.208.

53.28Complies ..........Correction required ..........53.29Initialed by Responsible Party: Buyer ..........Seller ..........

53.30Carbon monoxide alarms or CO detectors that are approved and operational are required 53.31to be installed within ten feet of each room lawfully used for sleeping purposes.

53.32Complies ..........Correction required ..........53.33Initialed by Responsible Party: Buyer ..........Seller ..........

54.1Egress windows are required in every bedroom with at least one operable window with 54.2a net clear opening of 20 inches wide and 24 inches high, five square feet in area, with 54.3the bottom of windows opening no more than 36 inches above the floor. Locks, latches, 54.4operating handles, tabs, or other operational devices shall not be located more than 54 54.5inches above the finished floor.

54.6Complies ..........Correction required ..........54.7Initialed by Responsible Party: Buyer ..........Seller ..........

54.8The furnace compartment of the home is required to have interior finish with a flame 54.9spread rating not exceeding 25 feet, as specified in the 1976 United States Department of 54.10Housing and Urban Development Code governing manufactured housing construction.

54.11Complies ..........Correction required ..........54.12Initialed by Responsible Party: Buyer ..........Seller ..........

54.13The water heater enclosure in this home is required to have interior finish with a flame 54.14spread rating not exceeding 25 feet, as specified in the 1976 United States Department of 54.15Housing and Urban Development Code governing manufactured housing construction.

54.16Complies ..........Correction required ..........54.17Initialed by Responsible Party: Buyer ..........Seller ..........

54.18The home complies with the snowload and heat zone requirements for the state of 54.19Minnesota as indicated by the data plate.

54.20Complies ..........Correction required ..........54.21Initialed by Responsible Party: Buyer ..........Seller ..........

54.22The parties to this agreement have initialed all required sections and agree by their 54.23signature to complete any necessary corrections prior to the sale or transfer of ownership 54.24of the home described below as listed in the purchase agreement. The state of Minnesota 54.25or a local building official has the authority to inspect the home in the manner described in 54.26Minnesota Statutes, section 
         327.33, prior to or after the sale to ensure compliance was 54.27properly executed as provided under the Manufactured Home Building Code.

54.28Signature of Purchaser(s) of Home54.29..............................date............................................................date..............................54.30......................................................................................................................................54.3154.32Print name as appears on purchase 
                  		agreementPrint name as appears on purchase 
                  		agreement54.33Signature of Seller(s) of Home54.34..............................date............................................................date..............................54.35......................................................................................................................................54.36Print name and license number, if applicablePrint name and license number, if applicable55.1(Street address of home at time of sale)55.2................................................................................................................................55.3(City/State/Zip).......................................................................................................55.4Name of manufacturer of home............................................................................55.5Model and year.....................................................................................................55.6Serial number........................................................................................................"

55.7EFFECTIVE DATE.This section is effective the day following final enactment.55.8    Sec. 51. Minnesota Statutes 2010, section 327.32, subdivision 1b, is amended to read:55.9    Subd. 1b. Alternative design plan. An alternative frost-free design slab for a new 55.10or used manufactured home that is submitted to the local building official, third-party 55.11inspector, or the department, stamped by a licensed professional engineer or architect, and 55.12is as being in compliance with either the federal installation standards in effect at the date 55.13of manufacture, the manufacturer's installation manual,  or the Minnesota State Building 55.14Code, when applicable, shall be issued a permit by the department within ten days of 55.15being received by the approving authority.55.16EFFECTIVE DATE.This section is effective the day following final enactment.55.17    Sec. 52. Minnesota Statutes 2010, section 327.32, subdivision 1e, is amended to read:55.18    Subd. 1e. Reinstallation requirements for single-section used manufactured 55.19homes. (a) All single-section used manufactured homes reinstalled less than 24 months 55.20from the date of installation by the first purchaser must be reinstalled in compliance with 55.21subdivision 1c. All single-section used manufactured homes reinstalled more than 24 55.22months from the date of installation by the first purchaser may be reinstalled without 55.23a frost-protected foundation if the home is reinstalled in compliance with Minnesota 55.24Rules, chapter 1350, for above frost-line installations and the notice requirement of 55.25subdivision 1f is complied with by the seller and the purchaser of the single-section used 55.26manufactured home.55.27(b) The installer shall affix an installation seal issued by the department to the 55.28outside of the home as required by the Minnesota State Building Code. The certificate 55.29of installation issued by the installer of record shall clearly state that the home has been 55.30reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and 55.31for issuance of reinstallation seals shall follow the requirements of sections 
         326B.802 55.32to 
         326B.885. Fees for review of plans, specifications, and on-site inspections shall be 55.33those as specified in section 
         326B.153, subdivision 1, paragraph (c). Whenever an 55.34installation certificate for an above frost-line installation is issued to a single-section used 56.1manufactured home being listed for sale, the purchase agreement must disclose that the 56.2home is installed on a nonfrost-protected foundation and recommend that the purchaser 56.3have the home inspected to determine the effects of frost on the home.56.4EFFECTIVE DATE.This section is effective the day following final enactment.56.5    Sec. 53. Minnesota Statutes 2010, section 327.32, subdivision 1f, is amended to read:56.6    Subd. 1f. Notice requirement. The seller of the single-section used manufactured 56.7home being reinstalled under subdivision 1e shall provide the following notice to the 56.8purchaser and secure signatures of all parties to the purchase agreement on or before 56.9signing a purchase agreement prior to submitting an application for an installation 56.10certificate. Whenever a current owner of a manufactured home reinstalls the manufactured 56.11home under subdivision 1e, the current owner is not required to comply with the notice 56.12requirement under this subdivision. The notice shall be in at least 14-point font, except the 56.13heading, "WHICH MAY VOID WARRANTY," must be in capital letters, in 20-point font. 56.14The notice must be printed on a separate sheet of paper in a color different than the paper 56.15on which the purchase agreement is printed. The notice becomes a part of the purchase 56.16agreement and shall be substantially in the following form:56.17"Notice of Reinstalling of a Single-Section Used Manufactured Home Above Frost-Line;56.18WHICH MAY VOID WARRANTY56.19It is recommended that the single-section used manufactured home being reinstalled 56.20follow the instructions in the manufacturer's installation manual. By signing this notice, 56.21the purchaser(s) are acknowledging they have elected to use footings placed above the 56.22local frost line in accordance with the Minnesota State Building Code.56.23The seller has explained the differences between the manufacturer's installation 56.24instructions and the installation system selected by the purchaser(s) with respect to 56.25possible effects of frost on the manufactured home.56.26The purchaser(s) acknowledge by signing this notice that there is no manufacturer's 56.27original warranty remaining on the home and recognize that any other extended or ancillary 56.28warranty could be adversely affected if any applicable warranty stipulates that the home 56.29be installed in accordance with the manufacturer's installation manual to remain effective.56.30After the reinstallation of the manufactured home, it is highly recommended that the 56.31purchaser(s) have a licensed manufactured home installer recheck the home's installation 56.32for any releveling needs or anchoring system adjustments each freeze-thaw cycle.57.1The purchaser(s) of the used manufactured home described below that is being reinstalled 57.2acknowledge they have read this notice and have been advised to contact the manufacturer 57.3of the home and/or the Department of Labor and Industry if they desire additional 57.4information before signing this notice. It is the intent of this notice to inform the 57.5purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system 57.6for the reinstallation of the manufactured home as originally required by the home's 57.7installation manual.57.8Plain language notice.57.9I understand that because this home will be installed with footings placed above the 57.10local frost line, this home may be subject to adverse effects from frost heave that may 57.11damage this home. Purchaser(s) initials: .......57.12I understand that the installation of this home with footings placed above the local 57.13frost line could affect my ability to obtain a mortgage or mortgage insurance on this 57.14home. Purchaser(s) initials: .......57.15I understand that the installation of this home with footings placed above the local 57.16frost line could void my warranty on the home if any warranty is still in place on this 57.17home. Purchaser(s) initials: .......

57.18Signature of Purchaser(s)57.19..............................date............................................................date..............................57.20......................................................................................................................................57.21Print namePrint name57.2257.23(Street address of location where 
                  		manufactured home is being reinstalled)57.24..............................................................................................................................57.25(City/State/Zip)....................................................................................................57.26Name of manufacturer of home.........................................................................57.27Model and year...................................................................................................57.28Serial number.....................................................................................................

57.29Name of licensed installer and license number or homeowner responsible for the 57.30installation of the home as described above.

57.31Installer name:...................................................................................................57.32License number:................................................................................................"

57.33EFFECTIVE DATE.This section is effective the day following final enactment.57.34    Sec. 54. Minnesota Statutes 2010, section 327.32, subdivision 7, is amended to read:57.35    Subd. 7. Enforcement. All jurisdictions enforcing the State Building Code, in 57.36accordance with sections 
         326B.101 to 
         326B.151, shall undertake or provide for the 58.1administration and enforcement of the manufactured home installation rules promulgated 58.2by the commissioner. Municipalities which have adopted the State Building Code may 58.3provide installation inspection and plan review services in noncode areas of the state.58.4EFFECTIVE DATE.This section is effective the day following final enactment.58.5    Sec. 55. Minnesota Statutes 2010, section 327.33, subdivision 2, is amended to read:58.6    Subd. 2. Fees. The commissioner shall by rule establish reasonable fees for seals, 58.7installation seals and inspections which are sufficient to cover all costs incurred in the 58.8administration of sections 
         327.31 to 
         327.35. The commissioner shall also establish by 58.9rule a monitoring inspection fee in an amount that will comply with the secretary's fee 58.10distribution program. This monitoring inspection fee shall be an amount paid by the 58.11manufacturer for each manufactured home produced in Minnesota. The monitoring 58.12inspection fee shall be paid by the manufacturer to the secretary. The rules of the 58.13fee distribution program require the secretary to distribute the fees collected from all 58.14manufactured home manufacturers among states approved and conditionally approved 58.15based on the number of new manufactured homes whose first location after leaving the 58.16manufacturer is on the premises of a distributor, dealer or purchaser in that state. Fees 58.17for inspections in areas that have not adopted the State Building Code must be equal to 58.18the fees for inspections in code areas of the state. Third party vendors may charge their 58.19usual and normal charge for inspections.58.20EFFECTIVE DATE.This section is effective the day following final enactment.58.21    Sec. 56. Minnesota Statutes 2010, section 327C.095, subdivision 12, is amended to 58.22read:58.23    Subd. 12. Payment to the Minnesota manufactured home relocation trust fund.58.24    (a) If a manufactured home owner is required to move due to the conversion of all or a 58.25portion of a manufactured home park to another use, the closure of a park, or cessation of 58.26use of the land as a manufactured home park, the manufactured park owner shall, upon 58.27the change in use, pay to the commissioner of management and budget for deposit in the 58.28Minnesota manufactured home relocation trust fund under section 
         462A.35, the lesser 58.29amount of the actual costs of moving or purchasing the manufactured home approved 58.30by the neutral third party and paid by the Minnesota Housing Finance Agency under 58.31subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured 58.32home, and $6,000 for each multisection manufactured home, for which a manufactured 58.33home owner has made application for payment of relocation costs under subdivision 13, 59.1paragraph (c). The manufactured home park owner shall make payments required under 59.2this section to the Minnesota manufactured home relocation trust fund within 60 days of 59.3receipt of invoice from the neutral third party.59.4    (b) A manufactured home park owner is not required to make the payment prescribed 59.5under paragraph (a), nor is a manufactured home owner entitled to compensation under 59.6subdivision 13, paragraph (a) or (e), if:59.7    (1) the manufactured home park owner relocates the manufactured home owner to 59.8another space in the manufactured home park or to another manufactured home park at 59.9the park owner's expense;59.10    (2) the manufactured home owner is vacating the premises and has informed the 59.11manufactured home park owner or manager of this prior to the mailing date of the closure 59.12statement under subdivision 1;59.13    (3) a manufactured home owner has abandoned the manufactured home, or the 59.14manufactured home owner is not current on the monthly lot rental, personal property taxes;59.15    (4) the manufactured home owner has a pending eviction action for nonpayment of 59.16lot rental amount under section 
         327C.09, which was filed against the manufactured home 59.17owner prior to the mailing date of the closure statement under subdivision 1, and the writ 59.18of recovery has been ordered by the district court;59.19    (5) the conversion of all or a portion of a manufactured home park to another use, 59.20the closure of a park, or cessation of use of the land as a manufactured home park is the 59.21result of a taking or exercise of the power of eminent domain by a governmental entity 59.22or public utility; or59.23    (6) the owner of the manufactured home is not a resident of the manufactured home 59.24park, as defined in section 
         327C.01, subdivision 9, or the owner of the manufactured home 59.25is a resident, but came to reside in the manufactured home park after the mailing date of 59.26the closure statement under subdivision 1.59.27    (c) If the unencumbered fund balance in the manufactured home relocation trust fund 59.28is less than $1,000,000 as of June 30 of each year, the commissioner of management and 59.29budget shall annually assess each manufactured home park owner by mail the total amount 59.30of $12 for each licensed lot in their park, payable on or before September 15 of each that59.31year. The commissioner of management and budget shall deposit the any payments in the 59.32Minnesota manufactured home relocation trust fund. On or before July 15 of each year, 59.33the commissioner of management and budget shall prepare and distribute to park owners a 59.34letter explaining whether funds are being collected for that year, information about the 59.35collection, an invoice for all licensed lots, and a sample form for the park owners to 59.36collect information on which park residents have been accounted for. If assessed under 60.1this paragraph, the park owner may recoup the cost of the $12 assessment as a lump 60.2sum or as a monthly fee of no more than $1 collected from park residents together with 60.3monthly lot rent as provided in section 
         327C.03, subdivision 6. Park owners may adjust 60.4payment for lots in their park that are vacant or otherwise not eligible for contribution to 60.5the trust fund under section 
         327C.095, subdivision 12, paragraph (b), and deduct from the 60.6assessment accordingly.60.7    (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 60.8the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 60.9in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 60.10attorney fees, court costs, and disbursements.60.11EFFECTIVE DATE.This section is effective the day following final enactment.60.12    Sec. 57. REVISOR'S INSTRUCTION.60.13The revisor of statutes shall renumber each section of Minnesota Statutes listed in 60.14column A with the number listed in column B. The revisor shall also make necessary 60.15cross-reference changes consistent with the renumbering.

60.16Column AColumn B60.17326B.82, subd. 2326B.091, subd. 2a60.18326B.82, subd. 3326B.091, subd. 2b60.19326b.82, subd. 5326B.091, subd. 2c60.20326B.82, subd. 7326B.091, subd. 4a60.21326B.82, subd. 8326B.091, subd. 5a60.22326B.82, subd. 9326B.091, subd. 5c60.23326B.82, subd. 10326B.091, subd. 760.24326B.821, subd. 4326B.0981, subd. 1760.25326B.821, subd. 5326B.0981, subd. 360.26326B.821, subd. 5a326B.0981, subd. 460.27326B.821, subd. 6326B.0981, subd. 560.28326B.821, subd. 7326B.0981, subd. 660.29326B.821, subd. 8326B.099, subd. 160.30326B.821, subd. 9326B.099, subd. 260.31326B.821, subd. 10326B.099, subd. 360.32326B.821, subd. 11326B.099, subd. 460.33326B.821, subd. 12326B.0981, subd. 760.34326B.821, subd. 13326B.0981, subd. 860.35326B.821, subd. 14326B.0981, subd. 960.36326B.821, subd. 15326B.0981, subd. 1060.37326B.821, subd. 16326B.0981, subd. 1160.38326B.821, subd. 17326B.099, subd. 561.1326B.821, subd. 18326B.0981, subd. 1261.2326B.821, subd. 19326B.0981, subd. 1361.3326B.821, subd. 20326B.0981, subd. 1461.4326B.821, subd. 22326B.0981, subd. 261.5326B.821, subd. 23326B.0981, subd. 1561.6326B.821, subd. 24326B.0981, subd. 16

61.7    Sec. 58.  REPEALER.61.8Minnesota Statutes 2010, sections 326B.82, subdivisions 4 and 6; and 326B.821, 61.9subdivision 3, are repealed.61.10EFFECTIVE DATE.This section is effective January 1, 2012.