1.1 	A bill for an act
1.2 	relating to economic development; modifying certain economic development 
1.3 	fees, licensing provisions, and programs; modifying certain occupational 
1.4 	continuing education requirements; clarifying and modifying regulation of 
1.5 	medical gas system and manufactured home provisions; requiring reports; 
1.6 	appropriating money for jobs, economic development, and housing purposes;
1.7 	amending Minnesota Statutes 2010, sections 116J.035, by adding a subdivision; 
1.8 	116J.551, subdivision 1; 181.723, subdivision 5; 182.6553, subdivision 6; 
1.9 	268A.15, subdivision 4; 326B.04, subdivision 2; 326B.091; 326B.098; 326B.13, 
1.10 	subdivision 8; 326B.148, subdivision 1; 326B.42, subdivisions 8, 9, 10, by 
1.11 	adding subdivisions; 326B.435, subdivision 2; 326B.438; 326B.46, subdivisions 
1.12 	1, 1a, 1b, 2, 3; 326B.47, subdivisions 1, 3; 326B.49, subdivision 1; 326B.56, 
1.13 	subdivision 1; 326B.58; 326B.82, subdivisions 2, 3, 7, 9; 326B.821, subdivisions 
1.14 	1, 5, 5a, 6, 7, 8, 9, 10, 11, 12, 15, 16, 18, 19, 20, 22, 23; 326B.865; 326B.89, 
1.15 	subdivisions 6, 8; 327.32, subdivisions 1a, 1b, 1e, 1f, 7; 327.33, subdivision 2; 
1.16 	327C.095, subdivision 12; 341.321; Laws 2009, chapter 78, article 1, section 
1.17 	18; proposing coding for new law in Minnesota Statutes, chapters 116J; 326B; 
1.18 	repealing Minnesota Statutes 2010, sections 326B.82, subdivisions 4, 6; 
1.19 	326B.821, subdivision 3; Laws 2007, chapter 135, article 2, section 34.
1.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21 	ARTICLE 1
1.22 	JOBS, ECONOMIC DEVELOPMENT, AND HOUSING APPROPRIATIONS

1.23
1.24	Section 1. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING 
APPROPRIATIONS.
 	
1.25 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.26 	in this article.

1.27			2012
		2013
		Total
	
1.28	General
	$
	87,189,000
	$
	82,189,000
	$
	169,378,000
	
1.29	Workforce Development
		17,451,000
		17,451,000
		34,902,000
	
1.30	Remediation
		700,000
		700,000
		1,400,000
	
2.1	Workers' Compensation 
		22,574,000
		22,574,000
		45,148,000
	
2.2	Total
	$
	127,914,000
	$
	122,914,000
	$
	250,828,000

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

2.11				APPROPRIATIONS
	
2.12				Available for the Year
	
2.13				Ending June 30
	
2.14					2012
		2013

2.15
2.16	Sec. 3. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.17	Subdivision 1.Total Appropriation
 	$
	61,198,000
	$
	56,198,000

2.18	Appropriations by Fund
	
2.19		2012
	2013
	
2.20	General
	44,076,000
	39,076,000
	
2.21	Remediation
	700,000
	700,000
	
2.22
2.23	Workforce 
Development
	16,422,000
	16,422,000
	
2.24 	The amounts that may be spent for each 
2.25 	purpose are specified in the following 
2.26 	subdivisions.

2.27
2.28	Subd. 2.Business and Community 
Development
 		13,281,000
		8,281,000

2.29	Appropriations by Fund
	
2.30	General
	12,242,000
	7,242,000
	
2.31	Remediation
	700,000
	700,000
	
2.32
2.33	Workforce 
Development
	339,000
	339,000
	
2.34 	(a) $700,000 the first year and $700,000 the 
2.35 	second year are from the remediation fund for 
2.36 	contaminated site cleanup and development 
3.1 	grants under Minnesota Statutes, section 
3.2 	116J.554. This appropriation is available 
3.3 	until expended.
3.4 	(b) $1,022,000 the first year and $1,022,000 
3.5 	the second year are from the general fund for 
3.6 	contaminated site cleanup and development 
3.7 	grants under Minnesota Statutes, section 
3.8 	116J.554. The base funding for this program 
3.9 	is $1,272,000 each year beginning in fiscal 
3.10 	year 2014 and thereafter.
3.11 	(c) $150,000 the first year is from the general 
3.12 	fund for a grant to WomenVenture for 
3.13 	women's business development programs 
3.14 	and for programs that encourage and assist 
3.15 	women to enter nontraditional careers in the 
3.16 	trades; manual and technical occupations; 
3.17 	science, technology, engineering, and 
3.18 	mathematics-related occupations; and green 
3.19 	jobs. This appropriation may be matched 
3.20 	dollar for dollar with any resources available 
3.21 	from the federal government for these 
3.22 	purposes with priority given to initiatives 
3.23 	that have a goal of increasing by at least ten 
3.24 	percent the number of women in occupations 
3.25 	where women currently comprise less than 
3.26 	25 percent of the workforce. This is a 
3.27 	onetime appropriation.
3.28 	(d) $79,000 the first year is from the general 
3.29 	fund and $50,000 the first year is from the 
3.30 	workforce development fund for a grant to 
3.31 	the Metropolitan Economic Development 
3.32 	Association for continuing minority business 
3.33 	development programs in the metropolitan 
3.34 	area. This appropriation must be used for the 
3.35 	sole purpose of providing free or reduced 
4.1 	fee business consulting services to minority 
4.2 	entrepreneurs and contractors. This is a 
4.3 	onetime appropriation.
4.4 	(e)(1) $356,000 the first year is a onetime 
4.5 	appropriation from the general fund for a 
4.6 	grant to BioBusiness Alliance of Minnesota 
4.7 	for bioscience business development 
4.8 	programs to promote and position the state 
4.9 	as a global leader in bioscience business 
4.10 	activities. These funds may be used to create, 
4.11 	recruit, retain, and expand biobusiness 
4.12 	activity in Minnesota; implement the 
4.13 	destination 2025 statewide plan; update 
4.14 	a statewide assessment of the bioscience 
4.15 	industry and the competitive position of 
4.16 	Minnesota-based bioscience businesses 
4.17 	relative to other states and other nations; 
4.18 	and develop and implement business and 
4.19 	scenario-planning models to create, recruit, 
4.20 	retain, and expand biobusiness activity in 
4.21 	Minnesota.
4.22 	(2) The BioBusiness Alliance must report 
4.23 	each year by February 15 to the committees 
4.24 	of the house of representatives and the senate 
4.25 	having jurisdiction over bioscience industry 
4.26 	activity in Minnesota on the use of funds; 
4.27 	the number of bioscience businesses and 
4.28 	jobs created, recruited, retained, or expanded 
4.29 	in the state since the last reporting period; 
4.30 	the competitive position of the biobusiness 
4.31 	industry; and utilization rates and results of 
4.32 	the business and scenario-planning models 
4.33 	and outcomes resulting from utilization of 
4.34 	the business and scenario-planning models.
5.1 	(f) $37,000 the first year is from the general 
5.2 	fund for a grant to the Minnesota Inventors 
5.3 	Congress, of which at least $3,700 must be 
5.4 	used for youth inventors. This is a onetime 
5.5 	appropriation.
5.6 	(g)(1) $100,000 the first year is from the 
5.7 	workforce development fund for a grant 
5.8 	under Minnesota Statutes, section 116J.421, 
5.9 	to the Rural Policy and Development 
5.10 	Center at St. Peter, Minnesota. The grant 
5.11 	shall be used for research and policy 
5.12 	analysis on emerging economic and social 
5.13 	issues in rural Minnesota, to serve as a 
5.14 	policy resource center for rural Minnesota 
5.15 	communities, to encourage collaboration 
5.16 	across higher education institutions, to 
5.17 	provide interdisciplinary team approaches 
5.18 	to research and problem-solving in rural 
5.19 	communities, and to administer overall 
5.20 	operations of the center. This is a onetime 
5.21 	appropriation.
5.22 	(2) The grant shall be provided upon the 
5.23 	condition that each state-appropriated 
5.24 	dollar be matched with a nonstate dollar. 
5.25 	Acceptable matching funds are nonstate 
5.26 	contributions that the center has received and 
5.27 	have not been used to match previous state 
5.28 	grants. Any funds not spent the first year are 
5.29 	available the second year.
5.30 	(h) $189,000 the first year is from 
5.31 	the workforce development fund for 
5.32 	entrepreneur and small business development 
5.33 	direct professional business assistance in 
5.34 	Blue Earth, Brown, Faribault, Le Sueur, 
5.35 	Martin, Nicollet, Sibley, Watonwan, and 
6.1 	Waseca Counties. These services must 
6.2 	include, but are not limited to, preventure 
6.3 	assistance for individuals considering 
6.4 	starting a business. Funds must be awarded 
6.5 	to an organization or organizations that can 
6.6 	demonstrate leverage of at least an equal 
6.7 	amount of federal funds. Any balance in the 
6.8 	first year does not cancel but is available in 
6.9 	the second year. The grant recipient must 
6.10 	report to the commissioner by February 1 
6.11 	of each year that the organization receives 
6.12 	a grant with the number of customers 
6.13 	served; the amount of direct consulting hours 
6.14 	delivered; the number of new businesses 
6.15 	started; the amount of capital accessed for 
6.16 	business start-up or expansion; and the 
6.17 	number of jobs created and retained in each 
6.18 	county. The commissioner must report to 
6.19 	the house of representatives and senate 
6.20 	committees with jurisdiction over economic 
6.21 	development finance on the effectiveness 
6.22 	of these programs for assisting in the 
6.23 	development of entrepreneurs and small 
6.24 	businesses. This is a onetime appropriation.
6.25 	(i) $757,000 the second year is from the 
6.26 	general fund and $339,000 the second year 
6.27 	is from the workforce development fund for 
6.28 	the business development competitive grant 
6.29 	pilot program.
6.30 	(1) The commissioner shall develop and 
6.31 	implement a competitive grant program 
6.32 	for business development assistance 
6.33 	and services including, but not limited 
6.34 	to: minority business development, 
6.35 	women's business development, rural 
6.36 	business development, bioscience business 
7.1 	development, entrepreneur development, 
7.2 	and services to inventors. Of this amount, 
7.3 	up to five percent is for administration and 
7.4 	monitoring of the business development 
7.5 	competitive grant program.
7.6 	(2) The commissioner must report to the 
7.7 	legislative committees having jurisdiction 
7.8 	over economic development issues by 
7.9 	January 10 each year on the following: 
7.10 	methodologies and processes for soliciting 
7.11 	and evaluating grant proposals; criteria and 
7.12 	methodology for selecting grant recipients; 
7.13 	methods and procedures for monitoring the 
7.14 	use of grant awards including expenditures 
7.15 	for administrative expenses by grant 
7.16 	recipients; and methods for measuring 
7.17 	outcomes and accomplishments of grant 
7.18 	recipients including but not limited to the 
7.19 	total number of new jobs created by each 
7.20 	grant recipient, average wage of new jobs 
7.21 	created, amount of private funds leveraged, 
7.22 	number of new businesses created and the 
7.23 	number of new jobs per business, return 
7.24 	on investment to the state, and ongoing 
7.25 	solicitation and feedback from interested 
7.26 	parties regarding ongoing improvement 
7.27 	and enhancement to the competitive grant 
7.28 	program. The commissioner must also report 
7.29 	on department expenditures related to the 
7.30 	administration and monitoring of grants 
7.31 	under this subdivision.
7.32 	(j) $1,492,000 each year is from the general 
7.33 	fund for the Minnesota Trade Office.
7.34 	(k) $3,000,000 the first year is from the 
7.35 	general fund for the Minnesota investment 
8.1 	fund under Minnesota Statutes, section 
8.2 	116J.8731. This is a onetime appropriation 
8.3 	and is available until spent.
8.4 	(l) $2,000,000 the first year is from the 
8.5 	general fund for grants under Minnesota 
8.6 	Statutes, section 116J.571, for the 
8.7 	redevelopment program. This is a onetime 
8.8 	appropriation and is available until spent.
8.9 	(m) $135,000 the first year is from the general 
8.10 	fund for a grant to Advocating Change 
8.11 	Together for training, technical assistance, 
8.12 	and resource materials for persons with 
8.13 	developmental and mental illness disabilities. 
8.14 	This is a onetime appropriation.
8.15 	(n) $250,000 each year is from the general 
8.16 	fund for a grant to Enterprise Minnesota, Inc., 
8.17 	for the small business growth acceleration 
8.18 	program under Minnesota Statutes, section 
8.19 	116O.115. This is a onetime appropriation.

8.20	Subd. 3.Workforce Development
 		46,898,000
		46,898,000

8.21	Appropriations by Fund
	
8.22	General
	30,815,000
	30,815,000
	
8.23
8.24	Workforce 
Development
	16,083,000
	16,083,000
	
8.25 	(a) $4,196,000 each year is from the general 
8.26 	fund for the Minnesota job skills partnership 
8.27 	program under Minnesota Statutes, sections 
8.28 	116L.01 to 116L.17. If the appropriation for 
8.29 	either year is insufficient, the appropriation 
8.30 	for the other year is available. This 
8.31 	appropriation is available until spent.
8.32 	(b) $10,800,000 each year is from the general 
8.33 	fund for the state's vocational rehabilitation 
8.34 	program under Minnesota Statutes, chapter 
8.35 	268A.
9.1 	(c) $5,928,000 each year is from the general 
9.2 	fund for the state services for the blind 
9.3 	activities.
9.4 	(d) $2,261,000 each year is from the general 
9.5 	fund for grants to centers for independent 
9.6 	living under Minnesota Statutes, section 
9.7 	268A.11.
9.8 	(e) $315,000 the first year is from the general 
9.9 	fund and $105,000 the first year is from the 
9.10 	workforce development fund for a grant 
9.11 	under Minnesota Statutes, section 116J.8747, 
9.12 	to Twin Cities RISE! to provide training to 
9.13 	hard-to-train individuals. This is a onetime 
9.14 	appropriation.
9.15 	(f) $135,000 the first year is from the general 
9.16 	fund and $50,000 the first year is from the 
9.17 	workforce development fund for a grant 
9.18 	to Northern Connections in Perham to 
9.19 	implement and operate a workforce program 
9.20 	that provides one-stop supportive services 
9.21 	to individuals as they transition into the 
9.22 	workforce. This is a onetime appropriation.
9.23 	(g) $5,245,000 each year is from the general 
9.24 	fund and $6,830,000 each year is from the 
9.25 	workforce development fund for extended 
9.26 	employment services for persons with severe 
9.27 	disabilities or related conditions under 
9.28 	Minnesota Statutes, section 268A.15. Of 
9.29 	the general fund appropriation, $125,000 
9.30 	each year is to supplement funds paid for 
9.31 	wage incentives for the community support 
9.32 	fund established in Minnesota Rules, part 
9.33 	3300.2045. Notwithstanding Minnesota 
9.34 	Rules, parts 3300.2030 to 3300.2055, the 
9.35 	commissioner may adjust contracts with 
10.1 	eligible extended employment providers in 
10.2 	order to achieve required reductions through 
10.3 	June 30, 2013.
10.4 	(h) $1,555,000 each year is from the general 
10.5 	fund for grants to programs that provide 
10.6 	employment support services to persons with 
10.7 	mental illness under Minnesota Statutes, 
10.8 	sections 268A.13 and 268A.14. Grants 
10.9 	may be used for special projects for young 
10.10 	people with mental illness transitioning from 
10.11 	school to work and people with serious 
10.12 	mental illness receiving services through 
10.13 	a mental health court or civil commitment 
10.14 	court. Special projects must demonstrate 
10.15 	interagency collaboration.
10.16 	(i) $130,000 the first year is from the general 
10.17 	fund and $175,000 the first year is from the 
10.18 	workforce development fund for a grant 
10.19 	under Minnesota Statutes, section 268A.03, 
10.20 	to Rise, Inc. for the Minnesota Employment 
10.21 	Center for People Who are Deaf or Hard 
10.22 	of Hearing. Money not expended the first 
10.23 	year is available the second year. This is a 
10.24 	onetime appropriation.
10.25 	(j) $90,000 the first year is from the general 
10.26 	fund and $200,000 the first year is from the 
10.27 	workforce development fund for a grant to 
10.28 	Lifetrack Resources for its immigrant and 
10.29 	refugee collaborative program, including 
10.30 	those related to job-seeking skills and 
10.31 	workplace orientation, intensive job 
10.32 	development, functional work English, and 
10.33 	on-site job coaching. This appropriation may 
10.34 	also be used in Rochester. This is a onetime 
10.35 	appropriation.
11.1 	(k) $1,375,000 the first year is from the 
11.2 	workforce development fund for the 
11.3 	Opportunities Industrialization Center 
11.4 	programs. The OIC State Council must 
11.5 	not be colocated with the Department of 
11.6 	Employment and Economic Development. 
11.7 	Of this amount, $3,000 may be used for 
11.8 	relocation expenses. This is a onetime 
11.9 	appropriation.
11.10 	(l) $160,000 the first year is from the general 
11.11 	fund for a grant to Minnesota Diversified 
11.12 	Industries, Inc., to provide progressive 
11.13 	development and employment opportunities 
11.14 	for people with disabilities. This is a onetime 
11.15 	appropriation.
11.16 	(m) $830,000 the second year is from the 
11.17 	general fund and $1,905,000 the second year 
11.18 	is from the workforce development fund for 
11.19 	the adult workforce development competitive 
11.20 	grant pilot program.
11.21 	(1) The commissioner in consultation with 
11.22 	the Governor's Workforce Development 
11.23 	Council shall develop and implement 
11.24 	a competitive grant program for adult 
11.25 	workforce development activities including, 
11.26 	but not limited to: job training, job search, 
11.27 	job placement, preemployment and job 
11.28 	readiness skills, progressive development 
11.29 	and employment opportunities for people 
11.30 	with disabilities, employment services 
11.31 	targeted to people who are deaf or hard of 
11.32 	hearing, and transition to work from public 
11.33 	assistance. Of this amount, up to five percent 
11.34 	is for administration and monitoring of the 
12.1 	adult workforce development competitive 
12.2 	grant pilot program.
12.3 	(2) The commissioner must report to the 
12.4 	legislative committees having jurisdiction 
12.5 	over economic development issues by 
12.6 	January 10 each year on the following: 
12.7 	methodologies and processes for soliciting 
12.8 	and evaluating grant proposals; criteria and 
12.9 	methodology for selecting grant recipients; 
12.10 	methods and procedures for monitoring the 
12.11 	use of grant awards including expenditures 
12.12 	for administrative expenses by grant 
12.13 	recipients; and methods for measuring 
12.14 	outcomes and accomplishments of grant 
12.15 	recipients including but not limited to the 
12.16 	total number of job placements by each grant 
12.17 	recipient, average wage of jobs in which 
12.18 	clients served by grant recipients are placed, 
12.19 	specific job skills developed and measures 
12.20 	of improved employability or employment 
12.21 	opportunities by the clients of the grant 
12.22 	recipients, amount of private funds leveraged, 
12.23 	return on investment to the state, and ongoing 
12.24 	solicitation and feedback from interested 
12.25 	parties regarding ongoing improvement 
12.26 	and enhancement to the competitive grant 
12.27 	program. The commissioner must also report 
12.28 	on department expenditures related to the 
12.29 	administration and monitoring of grants 
12.30 	under this subdivision.
12.31 	(n) $3,500,000 each year is from the 
12.32 	workforce development fund for the 
12.33 	Minnesota youth program under Minnesota 
12.34 	Statutes, sections 116L.56 and 116L.561.
13.1 	(o) $900,000 the first year is a onetime 
13.2 	appropriation from the workforce 
13.3 	development fund for grants for the 
13.4 	Minneapolis summer youth employment 
13.5 	program. The commissioner shall establish 
13.6 	criteria for awarding the grant.
13.7 	(p) $300,000 the first year is from the 
13.8 	workforce development fund for a grant to 
13.9 	the Minneapolis learn-to-earn summer youth 
13.10 	employment program. This is a onetime 
13.11 	appropriation.
13.12 	(q) $750,000 the first year is a onetime 
13.13 	appropriation from the workforce 
13.14 	development fund for a grant to the 
13.15 	Minnesota Alliance of Boys and Girls 
13.16 	Clubs to administer a statewide project 
13.17 	of youth jobs skills development. This 
13.18 	project, which may have career guidance 
13.19 	components, including health and life skills, 
13.20 	is to encourage, train, and assist youth in 
13.21 	job-seeking skills, workplace orientation, 
13.22 	and job site knowledge through coaching. 
13.23 	This grant requires a 25 percent match from 
13.24 	nonstate resources.
13.25 	(r) $558,000 the first year is a onetime 
13.26 	appropriation from the workforce 
13.27 	development fund for grants to fund summer 
13.28 	youth employment in St. Paul. The 
13.29 	commissioner shall establish criteria for 
13.30 	awarding the grant.
13.31 	(s) $1,000,000 each year is from the 
13.32 	workforce development fund for the 
13.33 	youthbuild program under Minnesota 
13.34 	Statutes, sections 116L.361 to 116L.366.
14.1 	(t) $340,000 the first year is a onetime 
14.2 	appropriation from the workforce 
14.3 	development fund for grants to provide 
14.4 	interpreters for a regional transition program 
14.5 	that specializes in providing culturally 
14.6 	appropriate transition services leading to 
14.7 	employment for deaf, hard-of-hearing, and 
14.8 	deafblind students.
14.9 	(u) $2,848,000 the second year is from the 
14.10 	workforce development fund for the youth 
14.11 	workforce development competitive grant 
14.12 	pilot program.
14.13 	(1) The commissioner in consultation with 
14.14 	the Governor's Workforce Development 
14.15 	Council shall develop and implement a 
14.16 	competitive grant program to provide 
14.17 	workforce development activities and 
14.18 	training to youth in Minnesota. Of 
14.19 	this amount, up to five percent is for 
14.20 	administration and monitoring of the youth 
14.21 	workforce development competitive grant 
14.22 	pilot program.
14.23 	(2) The commissioner must report to the 
14.24 	legislative committees having jurisdiction 
14.25 	over economic development issues by 
14.26 	January 10 each year on the following: 
14.27 	methodologies and processes for soliciting 
14.28 	and evaluating grant proposals; criteria and 
14.29 	methodology for selecting grant recipients; 
14.30 	methods and procedures for monitoring the 
14.31 	use of grant awards including expenditures 
14.32 	for administrative expenses by grant 
14.33 	recipients; and methods for measuring 
14.34 	outcomes and accomplishments of grant 
14.35 	recipients including but not limited to the 
15.1 	total number of youth served by each grant 
15.2 	recipient, number of job placements, job 
15.3 	search, training or placement services, 
15.4 	education or other employment-related 
15.5 	services, preemployment skill development, 
15.6 	average wage of jobs, amount of private 
15.7 	funds leveraged, return on investment 
15.8 	to the state, and ongoing solicitation 
15.9 	and feedback from interested parties 
15.10 	regarding ongoing improvement and 
15.11 	enhancement to the competitive grant 
15.12 	program. The commissioner must also report 
15.13 	on department expenditures related to the 
15.14 	administration and monitoring of grants 
15.15 	under this subdivision.
15.16 	(3) In awarding grants under this subdivision, 
15.17 	consideration must be given to programs that 
15.18 	target deaf, hard of hearing, and deaf/blind 
15.19 	students.

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

15.21	Subd. 5.Competitive Grant Limitations
 					
15.22 	An organization that receives a direct 
15.23 	appropriation under this section is not 
15.24 	eligible to participate in competitive grant 
15.25 	programs established under this section 
15.26 	during the fiscal years in which the direct 
15.27 	appropriations are received.

15.28	Sec. 4. HOUSING FINANCE AGENCY

15.29	Subdivision 1.Total Appropriation
 	$
	38,048,000
	$
	38,048,000
	
15.30 	The amounts that may be spent for each 
15.31 	purpose are specified in the following 
15.32 	subdivisions.
15.33 	This appropriation is for transfer to the 
15.34 	housing development fund for the programs 
16.1 	specified. Except as otherwise indicated, this 
16.2 	transfer is part of the agency's permanent 
16.3 	budget base.

16.4	Subd. 2.Challenge Program
 		6,955,000
		6,955,000
	
16.5 	For the economic development and housing 
16.6 	challenge program under Minnesota 
16.7 	Statutes, section 462A.33. Of this amount, 
16.8 	$1,208,000 each year shall be made available 
16.9 	during the first eight months of the fiscal 
16.10 	year exclusively for housing projects for 
16.11 	American Indians. Any funds not committed 
16.12 	to housing projects for American Indians in 
16.13 	the first eight months of the fiscal year shall 
16.14 	be available for any eligible activity under 
16.15 	Minnesota Statutes, section 462A.33.

16.16	Subd. 3.Housing Trust Fund
 		9,555,000
		9,555,000
	
16.17 	For deposit in the housing trust fund account, 
16.18 	for the purposes provided under Minnesota 
16.19 	Statutes, section 462A.201.

16.20	Subd. 4.Rental Assistance for Mentally Ill
 		2,638,000
		2,638,000
	
16.21 	For the rental housing assistance program for 
16.22 	persons with a mental illness or families with 
16.23 	an adult member with a mental illness under 
16.24 	Minnesota Statutes, section 462A.2097.

16.25	Subd. 5.Family Homeless Prevention
 		7,465,000
		7,465,000
	
16.26 	For the family homeless prevention and 
16.27 	assistance programs under Minnesota 
16.28 	Statutes, section 462A.204.

16.29	Subd. 6.Home Ownership Assistance Fund
 		797,000
		797,000
	
16.30 	For the home ownership assistance program 
16.31 	under Minnesota Statutes, section 462A.21, 
16.32 	subdivision 8.

16.33	Subd. 7.Affordable Rental Investment Fund
 		7,313,000
		7,313,000
	
17.1 	(a) For the affordable rental investment fund 
17.2 	program under Minnesota Statutes, section 
17.3 	462A.21, subdivision 8b. The appropriation 
17.4 	is to finance the acquisition, rehabilitation, 
17.5 	and debt restructuring of federally assisted 
17.6 	rental property and for making equity 
17.7 	take-out loans under Minnesota Statutes, 
17.8 	section 462A.05, subdivision 39.
17.9 	(b) The owner of federally assisted rental 
17.10 	property must agree to participate in 
17.11 	the applicable federally assisted housing 
17.12 	program and to extend any existing 
17.13 	low-income affordability restrictions on the 
17.14 	housing for the maximum term permitted. 
17.15 	The owner must also enter into an agreement 
17.16 	that gives local units of government, 
17.17 	housing and redevelopment authorities, 
17.18 	and nonprofit housing organizations the 
17.19 	right of first refusal if the rental property 
17.20 	is offered for sale. Priority must be given 
17.21 	among comparable federally assisted rental 
17.22 	properties to properties with the longest 
17.23 	remaining term under an agreement for 
17.24 	federal assistance. Priority must also be 
17.25 	given among comparable rental housing 
17.26 	developments to developments that are or 
17.27 	will be owned by local government units, a 
17.28 	housing and redevelopment authority, or a 
17.29 	nonprofit housing organization.
17.30 	(c) The appropriation also may be used to 
17.31 	finance the acquisition, rehabilitation, and 
17.32 	debt restructuring of existing supportive 
17.33 	housing properties. For purposes of this 
17.34 	subdivision, "supportive housing" means 
17.35 	affordable rental housing with links to 
17.36 	services necessary for individuals, youth, and 
18.1 	families with children to maintain housing 
18.2 	stability.

18.3	Subd. 8.Housing Rehabilitation
 		2,449,000
		2,449,000
	
18.4 	For the housing rehabilitation program 
18.5 	under Minnesota Statutes, section 462A.05, 
18.6 	subdivision 14, for rental housing 
18.7 	developments.

18.8
18.9	Subd. 9.Homeownership Education, 
Counseling, and Training
 		751,000
		751,000
	
18.10 	For the homeownership education, 
18.11 	counseling, and training program under 
18.12 	Minnesota Statutes, section 462A.209. 
18.13 	Notwithstanding Minnesota Statutes, section 
18.14 	462A.209, subdivision 7, paragraph (b), 
18.15 	more than one-half of the funds awarded 
18.16 	for foreclosure prevention and assistance 
18.17 	activities may be used for mortgage or 
18.18 	financial counseling services.

18.19	Subd. 10.Capacity-Building Grants
 		125,000
		125,000
	
18.20 	For nonprofit capacity-building grants 
18.21 	under Minnesota Statutes, section 462A.21, 
18.22 	subdivision 3b.

18.23
18.24	Sec. 5. DEPARTMENT OF LABOR AND 
INDUSTRY

18.25	Subdivision 1.Total Appropriation
 	$
	22,717,000
	$
	22,717,000

18.26	Appropriations by Fund
	
18.27		2012
	2013
	
18.28	General
	817,000
	817,000
	
18.29
18.30	Workers' 
Compensation
	20,871,000
	20,871,000
	
18.31
18.32	Workforce 
Development
	1,029,000
	1,029,000
	
18.33 	The amounts that may be spent for each 
18.34 	purpose are specified in the following 
18.35 	subdivisions.

19.1	Subd. 2.Workers' Compensation
 		14,832,000
		14,832,000
	
19.2 	This appropriation is from the workers' 
19.3 	compensation fund.
19.4 	$200,000 each year is for grants to the 
19.5 	Vinland Center for rehabilitation services. 
19.6 	Grants shall be distributed as the department 
19.7 	refers injured workers to the Vinland Center 
19.8 	for rehabilitation services.

19.9	Subd. 3.Labor Standards and Apprenticeship
 		1,846,000
		1,846,000

19.10	Appropriations by Fund
	
19.11	General
	817,000
	817,000
	
19.12
19.13	Workforce 
Development
	1,029,000
	1,029,000
	
19.14 	(a) $817,000 each year is from the 
19.15 	general fund for the labor standards and 
19.16 	apprenticeship program. 
19.17 	(b) $879,000 each year is appropriated from 
19.18 	the workforce development fund for the 
19.19 	apprenticeship program under Minnesota 
19.20 	Statutes, chapter 178, and includes $100,000 
19.21 	for labor education and advancement 
19.22 	program grants and to expand and promote 
19.23 	registered apprenticeship training in 
19.24 	nonconstruction trade programs.
19.25 	(c) $150,000 each year is appropriated 
19.26 	from the workforce development fund for 
19.27 	prevailing wage enforcement. 

19.28	Subd. 4.General Support
 		6,039,000
		6,039,000
	
19.29 	This appropriation is from the workers' 
19.30 	compensation fund.

19.31
19.32	Sec. 6. BUREAU OF MEDIATION 
SERVICES

19.33	Subdivision 1.Total Appropriation
 	$
	1,584,000
	$
	1,584,000
	
20.1 	The amounts that may be spent for each 
20.2 	purpose are specified in the following 
20.3 	subdivisions.

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

20.5
20.6	Subd. 3.Labor Management Cooperation 
Grants
 		68,000
		68,000
	
20.7 	$68,000 each year is for grants to area labor 
20.8 	management committees. Grants may be 
20.9 	awarded for a 12-month period beginning 
20.10 	July 1 each year. Any unencumbered balance 
20.11 	remaining at the end of the first year does not 
20.12 	cancel but is available for the second year.

20.13
20.14	Sec. 7. WORKERS' COMPENSATION 
COURT OF APPEALS
 	$
	1,703,000
	$
	1,703,000
	
20.15 	This appropriation is from the workers' 
20.16 	compensation fund. 

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

20.18
20.19
20.20
20.21	Sec. 9. BOARD OF ARCHITECTURE, 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	774,000
	$
	774,000

20.22
20.23	Sec. 10. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	1,046,000
	$
	1,046,000

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

20.25
20.26	Sec. 12. MINNESOTA SCIENCE AND 
TECHNOLOGY AUTHORITY
 	$
	107,000
	$
	107,000

20.27	Sec. 13. TRANSFERS
 					
20.28 	The unexpended balance as of June 30, 
20.29 	2011, estimated to be $1,575,000, of funds 
20.30 	collected for unemployment insurance state 
20.31 	administration under Minnesota Statutes, 
21.1 	section 268.18, is transferred to the general 
21.2 	fund before the closing of fiscal year 2011.
21.3 	In fiscal years 2012 and 2013, the 
21.4 	unexpended balance of funds collected for 
21.5 	unemployment insurance state administration 
21.6 	under Minnesota Statutes, section 268.18, 
21.7 	estimated to be $900,000 each year, is 
21.8 	transferred to the general fund before the 
21.9 	closing of each fiscal year.
21.10 	The deposits in each year of the biennium 
21.11 	into the contingent account created under 
21.12 	Minnesota Statutes, section 268.199, 
21.13 	estimated to be $6,450,000 each year, shall 
21.14 	be transferred before the closing of each 
21.15 	fiscal year to the general fund.

21.16 	ARTICLE 2
21.17 	MISCELLANEOUS ECONOMIC DEVELOPMENT PROVISIONS

21.18 	Section 1. Minnesota Statutes 2010, section 116J.035, is amended by adding a 
21.19 	subdivision to read:
21.20 		Subd. 7.Monitoring pass-through grant recipients. The commissioner shall 
21.21 	monitor the activities and outcomes of programs and services funded by legislative 
21.22 	appropriations and administered by the department on a pass-through basis. Unless 
21.23 	amounts are otherwise appropriated for administrative costs, the commissioner may 
21.24 	retain up to five percent of the amount appropriated to the department for grants to 
21.25 	pass-through entities. Amounts retained are deposited to a special revenue account and 
21.26 	are appropriated to the commissioner for costs incurred in administering and monitoring 
21.27 	the pass-through grants.

21.28 	Sec. 2. Minnesota Statutes 2010, section 116J.551, subdivision 1, is amended to read:
21.29 		Subdivision 1.Grant account. A contaminated site cleanup and development grant 
21.30 	account is created in the special revenue fund, general fund, petroleum tank fund, and 
21.31 	remediation fund. Money in the any account may be used, as appropriated by law, to make 
21.32 	grants as provided in section 116J.554 and to pay for the commissioner's costs in reviewing 
22.1 	applications and making grants. Notwithstanding section 16A.28, money appropriated to 
22.2 	the account accounts for this program from any source is available until spent.

22.3 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2010.

22.4 	Sec. 3. [116J.881] SMALL BUSINESS LOAN GUARANTEE PROGRAM.
22.5 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
22.6 	have the meanings given.
22.7 	(b) "Borrower" means a small business receiving an eligible loan under this section.
22.8 	(c) "Commissioner" means the commissioner of employment and economic 
22.9 	development.
22.10 	(d) "Eligible loan" means a loan to a small business to be used for business 
22.11 	purposes exclusively in Minnesota, including: construction; remodeling or renovation; 
22.12 	leasehold improvements; the purchase of land and buildings; business acquisitions, 
22.13 	including employee stock ownership plan financing; machinery or equipment purchases, 
22.14 	maintenance, or repair; expenses related to moving into or within Minnesota; and working 
22.15 	capital when the working capital is secured by fixed assets.
22.16 	(e) "Loan guarantee" means a guarantee of 70 percent of the loan amount provided 
22.17 	by a QED lender. The guaranteed portion of the loan must not exceed $1,500,000.
22.18 	(f) "Loan guarantee trust fund" means a dedicated fund established under this 
22.19 	section for the purpose of compensation for defaulted loan guarantees and for program 
22.20 	administration.
22.21 	(g) "Loan purchaser" means an institutional investor that purchases, holds, and 
22.22 	services small business loans on a nonrecourse basis from QED lenders participating in 
22.23 	the small business loan guarantee program.
22.24 	(h) "Qualified economic development lender" or "QED lender" means a public entity 
22.25 	or a private nonprofit economic development organization whose headquarters is located 
22.26 	in Minnesota with not less than three years of active lending experience that provides 
22.27 	financing to small businesses in partnership with banks and other commercial lenders, and 
22.28 	that originates subordinated loans to small businesses for sale to the secondary market.
22.29 	(i) "Secondary market" means the market in which loans are sold to investors, either 
22.30 	directly or through an intermediary.
22.31 	(j) "Small business" means a business employing no more than 500 persons in 
22.32 	Minnesota.
22.33 	(k) "Subordinated loan" means a loan secured by a lien that is lower in priority than 
22.34 	one or more specified other liens.
23.1 		Subd. 2.Loan guarantee program. A small business loan guarantee program to 
23.2 	support the origination and sale of eligible subordinated loans to the secondary market by 
23.3 	providing a credit enhancement in the form of a partial guarantee of small business loans 
23.4 	that are made to Minnesota businesses by a QED lender is created in the Department of 
23.5 	Employment and Economic Development. A loan guarantee shall be provided for eligible 
23.6 	loans under this section only when a bank or other commercial lender provides at least 50 
23.7 	percent of the total amount loaned to the small business. The loan guarantee shall apply 
23.8 	only to the portion of the loan that was made by the QED lender.
23.9 		Subd. 3.Required provisions. Loan guarantees under this section for loans to be 
23.10 	sold on the secondary market by QED lenders shall provide that:
23.11 	(1) principal and interest payments made by the borrower under the terms of the loan 
23.12 	are applied by the loan purchaser to reduce the guaranteed and nonguaranteed portion of 
23.13 	the loan on a proportionate basis. The nonguaranteed portion shall not receive preferential 
23.14 	treatment over the guaranteed portion;
23.15 	(2) the loan purchaser shall not accelerate repayment of the loan or exercise other 
23.16 	remedies if the borrower defaults, unless:
23.17 	(i) the borrower fails to make a required payment of principal or interest;
23.18 	(ii) the commissioner consents in writing; or
23.19 	(iii) the loan guarantee agreement provides for accelerated repayment or other 
23.20 	remedies.
23.21 	 In the event of a default, the loan purchaser may not make a demand for payment 
23.22 	pursuant to the guarantee unless the commissioner agrees in writing that the default has 
23.23 	materially affected the rights or security of the parties, and finds that the loan purchaser is 
23.24 	entitled to receive payment pursuant to the loan guarantee;
23.25 	(3) there is a written commitment from one or more secondary market investors to 
23.26 	purchase the loan, subject to the provision of a state loan guarantee;
23.27 	(4) the QED lender has timely prepared and delivered to the commissioner, annually 
23.28 	by the date specified in the loan guarantee, an audited or reviewed financial statement 
23.29 	for the loan, prepared by a certified public accountant according to generally accepted 
23.30 	accounting principles, and documentation that the borrower used the loan proceeds solely 
23.31 	for purposes of its Minnesota operations;
23.32 	(5) the commissioner has access to the original loan documents prior to approval of 
23.33 	the state credit enhancement to facilitate the sale of the loan to the secondary market;
23.34 	(6) the QED lender maintains adequate records and documents concerning the 
23.35 	original loan so that the commissioner may determine the borrower's financial condition 
23.36 	and compliance with program requirements; and
24.1 	(7) orderly liquidation of collateral securing the original loan is provided for in 
24.2 	the event of default, with an option on the part of the commissioner to acquire the loan 
24.3 	purchaser's interest in the assets pursuant to the loan guarantee.
24.4 		Subd. 4.Loan guarantee trust fund established. A loan guarantee trust fund 
24.5 	account in the special revenue fund is created in the state treasury to pay for defaulted 
24.6 	loan guarantees. The commissioner shall administer this fund and provide annual reports 
24.7 	concerning the performance of the fund to the chairs of the standing committees of the 
24.8 	house of representatives and senate having jurisdiction over economic development issues.
24.9 		Subd. 5.Limitation. At no time shall total outstanding loan guarantees for loans 
24.10 	sold to the secondary market exceed five times the amount on deposit in the loan guarantee 
24.11 	trust fund.
24.12 		Subd. 6.Guarantee fee. Participating QED lenders shall pay a fee to the fund of 
24.13 	0.25 percent of the principal amount of each guaranteed loan upon approval of each loan 
24.14 	guarantee. The guarantee fee, along with any interest earnings from the trust fund, shall 
24.15 	be used only for the administration of the small business loan guarantee program and 
24.16 	as additional loan loss reserves.
24.17 		Subd. 7.Loan guarantee application. The commissioner shall prepare a form for 
24.18 	QED lenders to use in applying for loan guarantees under this section. The form shall 
24.19 	include the following information:
24.20 	(1) the name and contact information for the QED lender, including the name and 
24.21 	title of a contact person;
24.22 	(2) the names of the financial institutions, including the names and titles of contact 
24.23 	persons, that are participating in the total financing being provided to the small business 
24.24 	borrower, along with the dollar amount of the loan provided by the financial institution;
24.25 	(3) the percentage and dollar amount of the subordinated debt loan provided to the 
24.26 	Minnesota small business by the QED lender; and
24.27 	(4) the loan guarantee amount that is requested from the program.
24.28 		Subd. 8.Notice and application process. Subject to the availability of funds under 
24.29 	subdivision 4, the commissioner shall publish a notice regarding the opportunity for QED 
24.30 	lenders to originate loans for which the loan guarantee may be secured as the loans are 
24.31 	prepared for sale to the secondary market. The commissioner shall decide whether to 
24.32 	provide a loan guarantee for each loan based on:
24.33 	(1) the completeness of the loan guarantee application;
24.34 	(2) the availability of funds in the loan guarantee trust fund; and
24.35 	(3) execution of agreements that satisfy requirements established in subdivision 3.

25.1 	Sec. 4. Minnesota Statutes 2010, section 268A.15, subdivision 4, is amended to read:
25.2 		Subd. 4.Evaluation. The commissioner of employment and economic development 
25.3 	shall evaluate the extended employment program to determine whether the purpose of 
25.4 	extended employment as defined in subdivision 2 is being achieved. The evaluation 
25.5 	must include information for the preceding funding year derived from the independent 
25.6 	compliance audits of extended employment service providers submitted to the department 
25.7 	on or before October 31 of each year. The evaluation must include an assessment 
25.8 	of whether workers in the extended employment program are satisfied with their 
25.9 	employment. A written report of this evaluation must be prepared at least every two years 
25.10 	and made available to the public.

25.11 	Sec. 5. Minnesota Statutes 2010, section 341.321, is amended to read:
25.12 	341.321 FEE SCHEDULE.
25.13 	(a) The fee schedule for professional licenses issued by the commission is as follows:
25.14 	(1) referees, $25 $45 for each initial license and each renewal;
25.15 	(2) promoters, $400 for each initial license and each renewal;
25.16 	(3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
25.17 	(4) trainers, $25 $45 for each initial license and each renewal;
25.18 	(5) ring announcers, $25 $45 for each initial license and each renewal;
25.19 	(6) seconds, $25 $45 for each initial license and each renewal;
25.20 	(7) timekeepers, $25 $45 for each initial license and each renewal;
25.21 	(8) combatants, $25 $45 for each initial license and each renewal;
25.22 	(9) managers, $25 $45 for each initial license and each renewal; and
25.23 	(10) ringside physicians, $25 $45 for each initial license and each renewal.
25.24 	In addition to the license fee and the late filing penalty fee in section 341.32, subdivision 
25.25 	2, if applicable, an individual who applies for a combatant professional license on the 
25.26 	same day the combative sporting event is held shall pay a late fee of $100 plus the original 
25.27 	license fee of $45 at the time the application is submitted.
25.28 	(b) The fee schedule for amateur licenses issued by the commission is as follows:
25.29 	(1) referees, $10 $45 for each initial license and each renewal;
25.30 	(2) promoters, $100 $400 for each initial license and each renewal;
25.31 	(3) judges and knockdown judges, $10 $45 for each initial license and each renewal;
25.32 	(4) trainers, $10 $45 for each initial license and each renewal;
25.33 	(5) ring announcers, $10 $45 for each initial license and each renewal;
25.34 	(6) seconds, $10 $45 for each initial license and each renewal;
25.35 	(7) timekeepers, $10 $45 for each initial license and each renewal;
26.1 	(8) combatant, $10 $25 for each initial license and each renewal;
26.2 	(9) managers, $10 $45 for each initial license and each renewal; and
26.3 	(10) ringside physicians, $10 $45 for each initial license and each renewal.
26.4 	(c) The commission shall establish a contest fee for each combative sport contest. 
26.5 	The professional combative sport contest fee is $1,500 per event or not more than four 
26.6 	percent of the gross ticket sales, whichever is greater, as determined by the commission 
26.7 	when the combative sport contest is scheduled, except that the amateur combative sport 
26.8 	contest fee shall be $150 $500 or not more than four percent of the gross ticket sales, 
26.9 	whichever is greater. The commission shall consider the size and type of venue when 
26.10 	establishing a contest fee. The commission may establish the maximum number of 
26.11 	complimentary tickets allowed for each event by rule. An A professional or amateur 
26.12 	combative sport contest fee is nonrefundable.
26.13 	(d) All fees and penalties collected by the commission must be deposited in the 
26.14 	commission account in the special revenue fund.

26.15 	Sec. 6. Laws 2009, chapter 78, article 1, section 18, is amended to read:

26.16
26.17	Sec. 18. COMBATIVE SPORTS 
COMMISSION
 	$
	80,000
	$
	80,000
	
26.18 	This is a onetime appropriation. The 
26.19 	Combative Sports Commission expires on 
26.20 	July 1, 2011, unless the commissioner of 
26.21 	finance determines that the commission's 
26.22 	projected expenditures for the fiscal biennium 
26.23 	ending June 30, 2013, will not exceed the 
26.24 	commission's projected revenues for the 
26.25 	fiscal biennium ending June 30, 2013, from 
26.26 	fees and penalties authorized in Minnesota 
26.27 	Statutes 2008, chapter 341.

26.28 	Sec. 7.  REPEALER.
 26.29 	Laws 2007, chapter 135, article 2, section 34, is repealed.

26.30 	ARTICLE 3
26.31 	LABOR AND INDUSTRY

26.32 	Section 1. Minnesota Statutes 2010, section 181.723, subdivision 5, is amended to read:
27.1 		Subd. 5.Application. To obtain an independent contractor exemption certificate, 
27.2 	the individual must submit, in the manner prescribed by the commissioner, a complete 
27.3 	application and the certificate fee required under subdivision 14.
27.4 	(a) A complete application must include all of the following information:
27.5 	(1) the individual's full name;
27.6 	(2) the individual's residence address and telephone number;
27.7 	(3) the individual's business name, address, and telephone number;
27.8 	(4) the services for which the individual is seeking an independent contractor 
27.9 	exemption certificate;
27.10 	(5) the individual's Social Security number;
27.11 	(6) the individual's or the individual's business federal employer identification 
27.12 	number, if a number has been issued to the individual or the individual's business;
27.13 	(7) any information or documentation that the commissioner requires by rule that 
27.14 	will assist the department in determining whether to grant or deny the individual's 
27.15 	application; and
27.16 	(8) the individual's sworn statement that the individual meets all of the following 
27.17 	conditions:
27.18 	(i) maintains a separate business with the individual's own office, equipment, 
27.19 	materials, and other facilities;
27.20 	(ii) holds or has applied for a federal employer identification number or has filed 
27.21 	business or self-employment income tax returns with the federal Internal Revenue Service 
27.22 	if the person has performed services in the previous year for which the individual is 
27.23 	seeking the independent contractor exemption certificate;
27.24 	(iii) operates under contracts to perform specific services for specific amounts of 
27.25 	money and under which the individual controls the means of performing the services;
27.26 	(iv) incurs the main expenses related to the service that the individual performs 
27.27 	under contract;
27.28 	(v) is responsible for the satisfactory completion of services that the individual 
27.29 	contracts to perform and is liable for a failure to complete the service;
27.30 	(vi) receives compensation for service performed under a contract on a commission 
27.31 	or per-job or competitive bid basis and not on any other basis;
27.32 	(vii) may realize a profit or suffer a loss under contracts to perform service;
27.33 	(viii) has continuing or recurring business liabilities or obligations; and
27.34 	(ix) the success or failure of the individual's business depends on the relationship of 
27.35 	business receipts to expenditures.
28.1 	(b) Individuals who are applying for or renewing a residential building contractor or 
28.2 	residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81, 
28.3 	326B.815, 326B.821 to 326B.86, 326B.87 to 326B.885, and 327B.041, and any rules 
28.4 	promulgated pursuant thereto, may simultaneously apply for or renew an independent 
28.5 	contractor exemption certificate. The commissioner shall create an application form 
28.6 	that allows for the simultaneous application for both a residential building contractor 
28.7 	or residential remodeler license and an independent contractor exemption certificate. 
28.8 	If individuals simultaneously apply for or renew a residential building contractor or 
28.9 	residential remodeler license and an independent contractor exemption certificate using 
28.10 	the form created by the commissioner, individuals shall only be required to provide, in 
28.11 	addition to the information required by section 326B.83 and rules promulgated pursuant 
28.12 	thereto, the sworn statement required by paragraph (a), clause (8), and any additional 
28.13 	information required by this subdivision that is not also required by section 326B.83
28.14 	and any rules promulgated thereto. When individuals submit a simultaneous application 
28.15 	on the form created by the commissioner for both a residential building contractor or 
28.16 	residential remodeler license and an independent contractor exemption certificate, the 
28.17 	application fee shall be $150. An independent contractor exemption certificate that is in 
28.18 	effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by 
28.19 	the commissioner or canceled by the individual.
28.20 	(c) Within 30 days of receiving a complete application and the certificate fee, the 
28.21 	commissioner must either grant or deny the application. The commissioner may deny 
28.22 	an application for an independent contractor exemption certificate if the individual has 
28.23 	not submitted a complete application and certificate fee or if the individual does not 
28.24 	meet all of the conditions for holding the independent contractor exemption certificate. 
28.25 	The commissioner may revoke an independent contractor exemption certificate if the 
28.26 	commissioner determines that the individual no longer meets all of the conditions for 
28.27 	holding the independent contractor exemption certificate, commits any of the actions 
28.28 	set out in subdivision 7, or fails to cooperate with a department investigation into the 
28.29 	continued validity of the individual's certificate. Once issued, an independent contractor 
28.30 	exemption certificate remains in effect for four years unless:
28.31 	(1) revoked by the commissioner; or
28.32 	(2) canceled by the individual.
28.33 	(d) If the department denies an individual's original or renewal application for 
28.34 	an independent contractor exemption certificate or revokes an independent contractor 
28.35 	exemption certificate, the commissioner shall issue to the individual an order denying or 
28.36 	revoking the certificate. The commissioner may issue an administrative penalty order to 
29.1 	an individual or person who commits any of the actions set out in subdivision 7. The 
29.2 	commissioner may file and enforce the unpaid portion of a penalty as a judgment in 
29.3 	district court without further notice or additional proceedings.
29.4 	(e) An individual or person to whom the commissioner issues an order under 
29.5 	paragraph (d) shall have 30 days after service of the order to request a hearing. The 
29.6 	request for hearing must be in writing and must be served on or faxed to the commissioner 
29.7 	at the address or facsimile number specified in the order by the 30th day after service of 
29.8 	the order. If the individual does not request a hearing or if the individual's request for a 
29.9 	hearing is not served on or faxed to the commissioner by the 30th day after service of the 
29.10 	order, the order shall become a final order of the commissioner and will not be subject to 
29.11 	review by any court or agency. The date on which a request for hearing is served by mail 
29.12 	shall be the postmark date on the envelope in which the request for hearing is mailed. If 
29.13 	the individual serves or faxes a timely request for hearing, the hearing shall be a contested 
29.14 	case hearing and shall be held in accordance with chapter 14.

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

29.19 	Sec. 3. Minnesota Statutes 2010, section 326B.04, subdivision 2, is amended to read:
29.20 		Subd. 2.Deposits.  Unless otherwise specifically designated by law: (1) all money 
29.21 	collected under sections 144.122, paragraph (f); 181.723; 326B.092 to 326B.096; 
29.22 	326B.101 to 326B.194; 326B.197; 326B.32 to 326B.399; 326B.43 to 326B.49; 326B.52
29.23 	to 326B.59; 326B.802 to 326B.885; 326B.90 to 326B.998; 327.31 to 327.36; and 
29.24 	327B.01 to 327B.12, except penalties, is credited to the construction code fund; (2) all 
29.25 	fees collected under section 45.23 sections 326B.098 to 326B.099 in connection with 
29.26 	continuing education for residential contractors, residential remodelers, and residential 
29.27 	roofersany license, registration, or certificate issued pursuant to this chapter are credited 
29.28 	to the construction code fund; and (3) all penalties assessed under the sections set forth 
29.29 	in clauses (1) and (2) and all penalties assessed under sections 144.99 to 144.993 in 
29.30 	connection with any violation of sections 326B.43 to 326B.49 or 326B.52 to 326B.59 or 
29.31 	the rules adopted under those sections are credited to the assigned risk safety account 
29.32 	established by section 79.253.

30.1 	Sec. 4. Minnesota Statutes 2010, section 326B.091, is amended to read:
30.2 	326B.091 DEFINITIONS.
30.3 		Subdivision 1.Applicability. For purposes of sections 326B.091 to 326B.098
30.4 	326B.099, the terms defined in this section have the meanings given them.
30.5 		Subd. 2.Applicant. "Applicant" means a person who has submitted to the 
30.6 	department an application for aan initial or renewal license.
30.7 		Subd. 3.License. "License" means any registration, certification, or other form 
30.8 	of approval authorized by this chapter 326B and chapter 327B to be issued by the 
30.9 	commissioner or department as a condition of doing business or conducting a trade, 
30.10 	profession, or occupation in Minnesota. License includes specifically but not exclusively 
30.11 	an authorization issued by the commissioner or department: to perform electrical work, 
30.12 	plumbing or water conditioning work, high pressure piping work, or residential building 
30.13 	work of a residential contractor, residential remodeler, or residential roofer; to install 
30.14 	manufactured housing; to serve as a building official; or to operate a boiler or boat.
30.15 		Subd. 4.Licensee. "Licensee" means the person named on the license as the person 
30.16 	authorized to do business or conduct the trade, profession, or occupation in Minnesota.
30.17 		Subd. 5.Notification date. "Notification date" means the date of the written 
30.18 	notification from the department to an applicant that the applicant is qualified to take the 
30.19 	examination required for licensure.
30.20 		Subd. 5b.Qualifying individual. "Qualifying individual" means the individual 
30.21 	responsible for obtaining continuing education on behalf of a residential building 
30.22 	contractor, residential remodeler, or residential roofer licensed pursuant to sections 
30.23 	326B.801 to 326B.885.
30.24 		Subd. 6.Renewal deadline. "Renewal deadline," when used with respect to a 
30.25 	license, means 30 days before the date that the license expires.

30.26 	Sec. 5. Minnesota Statutes 2010, section 326B.098, is amended to read:
30.27 	326B.098 CONTINUING EDUCATION.
30.28 		Subdivision 1.Applicability Department seminars. This section applies to 
30.29 	seminars offered by the department for the purpose of allowing enabling licensees to meet 
30.30 	continuing education requirements for license renewal.
30.31 		Subd. 2.Rescheduling. An individual who is registered with the department to 
30.32 	attend a seminar may reschedule one time only, to attend the same seminar on a date 
30.33 	within one year after the date of the seminar the individual was registered to attend.
30.34 		Subd. 3.Fees nonrefundable. All seminar fees paid to the department are 
30.35 	nonrefundable except for any overpayment of fees or if the department cancels the seminar.

31.1 	Sec. 6. [326B.0981] CONTINUING EDUCATION; NONDEPARTMENT 
31.2 	SEMINARS.
31.3 	This section applies to seminars that are offered by an entity other than the 
31.4 	department for the purpose of enabling licensees to meet continuing education 
31.5 	requirements for license renewal.

31.6 	Sec. 7. Minnesota Statutes 2010, section 326B.13, subdivision 8, is amended to read:
31.7 		Subd. 8.Effective date of rules. A rule to adopt or amend the State Building Code 
31.8 	is effective 180 days after the filing of the rule with the secretary of state under section 
31.9 	14.16 or 14.26 publication of the rule's notice of adoption in the State Register. The rule 
31.10 	may provide for a later effective date. The rule may provide for an earlier effective date 
31.11 	if the commissioner or board proposing the rule finds that an earlier effective date is 
31.12 	necessary to protect public health and safety after considering, among other things, the 
31.13 	need for time for training of individuals to comply with and enforce the rule.

31.14 	Sec. 8. Minnesota Statutes 2010, section 326B.148, subdivision 1, is amended to read:
31.15 		Subdivision 1.Computation. To defray the costs of administering sections 
31.16 	326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in 
31.17 	connection with the construction of or addition or alteration to buildings and equipment or 
31.18 	appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge 
31.19 	receipts to award grants for code research and development and education.
31.20 	If the fee for the permit issued is fixed in amount the surcharge is equivalent to 
31.21 	one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June 
31.22 	30, 2011 2013, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5, 
31.23 	whichever amount is greater. For all other permits, the surcharge is as follows:
31.24 	(1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the 
31.25 	surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition, 
31.26 	or alteration;
31.27 	(2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths 
31.28 	mill (.0004) of the value between $1,000,000 and $2,000,000;
31.29 	(3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths 
31.30 	mill (.0003) of the value between $2,000,000 and $3,000,000;
31.31 	(4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth 
31.32 	mill (.0002) of the value between $3,000,000 and $4,000,000;
31.33 	(5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth 
31.34 	mill (.0001) of the value between $4,000,000 and $5,000,000; and
32.1 	(6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth 
32.2 	mill (.00005) of the value that exceeds $5,000,000.

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

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

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

32.19 	Sec. 12. Minnesota Statutes 2010, section 326B.42, subdivision 9, is amended to read:
32.20 		Subd. 9.Responsible licensed plumber individual. A contractor's "responsible 
32.21 	licensed plumber individual" means the licensed master plumber or licensed restricted 
32.22 	master plumber designated in writing by the contractor in the contractor's license 
32.23 	application, or in another manner acceptable to the commissioner, as the individual 
32.24 	responsible for the contractor's compliance with sections 326B.41 to 326B.49, all rules 
32.25 	adopted under these sections and sections 326B.50 to 326B.59, and all orders issued 
32.26 	under section 326B.082.

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

33.1 	Sec. 14. Minnesota Statutes 2010, section 326B.435, subdivision 2, is amended to read:
33.2 		Subd. 2.Powers; duties; administrative support. (a) The board shall have the 
33.3 	power to:
33.4 	(1) elect its chair, vice-chair, and secretary;
33.5 	(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 
33.6 	and containing such other provisions as may be useful and necessary for the efficient 
33.7 	conduct of the business of the board;
33.8 	(3) adopt the plumbing code that must be followed in this state and any plumbing 
33.9 	code amendments thereto. The plumbing code shall include the minimum standards 
33.10 	described in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board 
33.11 	shall adopt the plumbing code and any amendments thereto pursuant to chapter 14 and 
33.12 	as provided in subdivision 6, paragraphs (b), (c), and (d);
33.13 	(4) review requests for final interpretations and issue final interpretations as provided 
33.14 	in section 326B.127, subdivision 5;
33.15 	(5) adopt rules that regulate the licensure, certification, or registration of plumbing 
33.16 	contractors, journeymen, unlicensed individuals, master plumbers, restricted master 
33.17 	plumbers, restricted journeymen, restricted plumbing contractors, backflow prevention 
33.18 	rebuilders and testers, water conditioning contractors, and water conditioning installers, 
33.19 	and other persons engaged in the design, installation, and alteration of plumbing systems 
33.20 	or engaged in or working at the business of water conditioning installation or service, or 
33.21 	engaged in or working at the business of medical gas system installation, maintenance, or 
33.22 	repair, except for those individuals licensed under section 326.02, subdivisions 2 and 3. 
33.23 	The board shall adopt these rules pursuant to chapter 14 and as provided in subdivision 
33.24 	6, paragraphs (e) and (f);
33.25 	(6) adopt rules that regulate continuing education for individuals licensed as master 
33.26 	plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman 
33.27 	plumbers, water conditioning contractors, and water conditioning installers, and for 
33.28 	individuals certified under sections 326B.437 and 326B.438. The board shall adopt these 
33.29 	rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) and (f);
33.30 	(7) refer complaints or other communications to the commissioner, whether oral or 
33.31 	written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 
33.32 	order that the commissioner has the authority to enforce pertaining to code compliance, 
33.33 	licensure, or an offering to perform or performance of unlicensed plumbing services;
33.34 	(8) approve per diem and expenses deemed necessary for its members as provided in 
33.35 	subdivision 3;
33.36 	(9) approve license reciprocity agreements;
34.1 	(10) select from its members individuals to serve on any other state advisory council, 
34.2 	board, or committee; and
34.3 	(11) recommend the fees for licenses, registrations,  and certifications.
34.4 	Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 
34.5 	Board of High Pressure Piping Systems, the commissioner of labor and industry shall 
34.6 	administer and enforce the provisions of this chapter and any rules promulgated pursuant 
34.7 	thereto.
34.8 	(b) The board shall comply with section 15.0597, subdivisions 2 and 4.
34.9 	(c) The commissioner shall coordinate the board's rulemaking and recommendations 
34.10 	with the recommendations and rulemaking conducted by the other boards created pursuant 
34.11 	to this chapter. The commissioner shall provide staff support to the board. The support 
34.12 	includes professional, legal, technical, and clerical staff necessary to perform rulemaking 
34.13 	and other duties assigned to the board. The commissioner of labor and industry shall 
34.14 	supply necessary office space and supplies to assist the board in its duties.

34.15 	Sec. 15. [326B.437] REDUCED PRESSURE BACKFLOW PREVENTION 
34.16 	REBUILDERS AND TESTERS.
34.17 	(a) No person shall perform or offer to perform the installation, maintenance, repair, 
34.18 	replacement, or rebuilding of reduced pressure zone backflow prevention assemblies 
34.19 	unless the person obtains a plumbing contractor's license. An individual shall not engage 
34.20 	in the testing, maintenance, repair, or rebuilding of reduced pressure zone backflow 
34.21 	prevention assemblies, as regulated by the Plumbing Code, unless the individual is 
34.22 	certified by the commissioner as a backflow prevention rebuilder.
34.23 	(b) An individual shall not engage in testing of a reduced pressure zone backflow 
34.24 	prevention assembly, as regulated by the Plumbing Code, unless the individual possesses a 
34.25 	backflow prevention rebuilder certificate or is certified by the commissioner as a backflow 
34.26 	prevention tester.
34.27 	(c) Certificates are issued for an initial period of two years and must be renewed 
34.28 	every two years thereafter for as long as the certificate holder installs, maintains, repairs, 
34.29 	rebuilds, or tests reduced pressure zone backflow prevention assemblies. For purposes 
34.30 	of calculating fees under section 326B.092, an initial or renewed backflow prevention 
34.31 	rebuilder or tester certificate shall be considered an entry level license.
34.32 	(d) The Plumbing Board shall adopt expedited rules under section 14.389 that are 
34.33 	related to the certification of backflow prevention rebuilders and backflow prevention 
34.34 	testers. Section 326B.13, subdivision 8, does not apply to these rules. Notwithstanding the 
34.35 	18-month limitation under section 14.125, this authority expires on December 31, 2014.
35.1 	(e) The department shall recognize certification programs that are a minimum of 16 
35.2 	contact hours and include the passage of an examination. The examination must consist of 
35.3 	a practical and a written component. This paragraph expires when the Plumbing Board 
35.4 	adopts rules under paragraph (d).

35.5 	Sec. 16. Minnesota Statutes 2010, section 326B.438, is amended to read:
35.6 	326B.438 MEDICAL GAS SYSTEMS.
35.7 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
35.8 	this subdivision have the meanings given them.
35.9 	(b) "Medical gas" means medical gas as defined under the National Fire Protection 
35.10 	Association NFPA 99C Standard on Gas and Vacuum Systems.
35.11 	(c) "Medical gas system" means a level 1, 2, or 3 piped medical gas and vacuum 
35.12 	system as defined under the National Fire Protection Association NFPA 99C Standard on 
35.13 	Gas and Vacuum Systems.
35.14 		Subd. 2.License and certification required. ANo person shall perform or offer 
35.15 	to perform the installation, maintenance, or repair of medical gas systems unless the 
35.16 	person obtains a contractor license. An individual shall not engage in the installation, 
35.17 	maintenance, or repair of a medical gas system unless the person individual possesses 
35.18 	a current Minnesota master or journeyman plumber's license and is certified by the 
35.19 	commissioner under rules adopted by the Minnesota Plumbing Board. The certification 
35.20 	must be renewed annually biennially for as long as the certificate holder engages in the 
35.21 	installation, maintenance, or repair of medical gas and vacuum systems. If a medical gas 
35.22 	and vacuum system certificate is not renewed within 12 months after its expiration the 
35.23 	medical gas and vacuum certificate is permanently forfeited.
35.24 		Subd. 3.Exemptions. (a) A person An individual who on August 1, 2010, holds
35.25 	possesses  a valid certificate authorized by meeting the requirements of  the American 
35.26 	Society of Sanitary Engineering (ASSE) Standard 6010 and is a qualified brazer in 
35.27 	accordance with standards recommended by the provisions required in  the National 
35.28 	Fire Protection Association under NFPA (NFPA) 99C is exempt from the licensing 
35.29 	requirements of subdivision 2 and may install, maintain, and repair a medical gas system. 
35.30 	This exemption applies only if the person individual maintains a valid certification 
35.31 	authorized by the ASSE in accordance with ASSE Standard 6010 and the brazer 
35.32 	qualifications in NFPA 99C, and is certified by the commissioner under rules adopted by 
35.33 	the Minnesota Plumbing Board.
35.34 	(b) A person who on August 1, 2010, possesses a current Minnesota master or 
35.35 	journeyman plumber's license and a valid certificate authorized by the ASSE in accordance 
36.1 	with standards recommended by the National Fire Protection Association under NFPA 
36.2 	99C is exempt from the requirements of subdivision 2 and may install, maintain, and repair 
36.3 	a medical gas system. This exemption applies only if a person maintains a valid Minnesota 
36.4 	master or journeyman plumber's license and valid certification authorized by the ASSE.
36.5 		Subd. 4.Fees. The fee for a medical gas certificateFor the purpose of calculating 
36.6 	fees under section 326B.092, an initial or renewed medical gas certificate issued by the 
36.7 	commissioner according to subdivision 2 is $30 per year shall be considered a journeyman 
36.8 	level license.

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

36.13 	Sec. 17. Minnesota Statutes 2010, section 326B.46, subdivision 1, is amended to read:
36.14 		Subdivision 1.License required. (a) No individual shall engage in or work at 
36.15 	the business of a master plumber, restricted master plumber, journeyman plumber, and 
36.16 	restricted journeyman plumber unless licensed to do so by the commissioner. A license 
36.17 	is not required for individuals performing building sewer or water service installation 
36.18 	who have completed pipe laying training as prescribed by the commissioner. A master 
36.19 	plumber may also work as a journeyman plumber, a restricted journeyman plumber, 
36.20 	and a restricted master plumber. A journeyman plumber may also work as a restricted 
36.21 	journeyman plumber. Anyone not so licensed may do plumbing work which complies with 
36.22 	the provisions of the minimum standards prescribed by the Plumbing Board on premises 
36.23 	or that part of premises owned and actually occupied by the worker as a residence, unless 
36.24 	otherwise forbidden to do so by a local ordinance.
36.25 	(b) No person shall engage in the business of planning, superintending, or installing 
36.26 	plumbing or shall install plumbing in connection with the dealing in and selling of 
36.27 	plumbing material and supplies unless at all times a licensed master plumber, or in cities 
36.28 	and towns with a population of fewer than 5,000 according to the last federal census, a 
36.29 	restricted master plumber, who shall be responsible for proper installation, is in charge of 
36.30 	the plumbing work of the person.
36.31 	(c) Except as provided in subdivision 2 1a, no person shall perform or offer to 
36.32 	perform plumbing work with or without compensation unless the person obtains a 
36.33 	contractor's license. A contractor's license does not of itself qualify its holder to perform 
36.34 	the plumbing work authorized by holding a master, journeyman, restricted master, or 
36.35 	restricted journeyman license.

37.1 	Sec. 18. Minnesota Statutes 2010, section 326B.46, subdivision 1a, is amended to read:
37.2 		Subd. 1a.Exemptions from licensing. (a) An individual without a contractor 
37.3 	license may do plumbing work on the individual's residence in accordance with 
37.4 	subdivision 1, paragraph (a).
37.5 	(b) An individual who is an employee working on the maintenance and repair of 
37.6 	plumbing equipment, apparatus, or facilities owned or leased by the individual's employer 
37.7 	and which is within the limits of property owned or leased, and operated or maintained by 
37.8 	the individual's employer, shall not be required to maintain a contractor license as long 
37.9 	as the employer has on file with the commissioner a current certificate of responsible 
37.10 	person. The certificate must be signed by the responsible individual. The responsible 
37.11 	individual must be a  master plumber or, in an area of the state that is not a city or town 
37.12 	with a population of more than 5,000 according to the last federal census, a restricted 
37.13 	master plumber,. The certificate must be signed by the responsible individual and must 
37.14 	state that the person signing the certificate is responsible for ensuring that the maintenance 
37.15 	and repair work performed by the employer's employees comply complies with sections 
37.16 	326B.41 to 326B.49, all rules adopted under those sections and sections 326B.50 to 
37.17 	326B.59, and all orders issued under section 326B.082. The employer must pay a filing 
37.18 	fee to file a certificate of responsible person individual with the commissioner. The 
37.19 	certificate shall expire two years from the date of filing. In order to maintain a current 
37.20 	certificate of responsible person individual, the employer must resubmit a certificate of 
37.21 	responsible person individual, with a filing fee, no later than two years from the date of the 
37.22 	previous submittal. The filing of the certificate of responsible person individual does not 
37.23 	exempt any employee of the employer from the requirements of this chapter regarding 
37.24 	individual licensing as a plumber or registration as a plumber's apprentice.
37.25 	(c) If a contractor employs a licensed plumber, the licensed plumber does not need a 
37.26 	separate contractor license to perform plumbing work on behalf of the employer within 
37.27 	the scope of the licensed plumber's license.
37.28 	(d) A person may perform and offer to perform building sewer or water service 
37.29 	installation without a contractor's license if the person is in compliance with the bond and 
37.30 	insurance requirements of subdivision 2.

37.31 	Sec. 19. Minnesota Statutes 2010, section 326B.46, subdivision 1b, is amended to read:
37.32 		Subd. 1b.Employment of master plumber or restricted master plumber. (a) 
37.33 	Each contractor must designate a responsible licensed plumber, who shall be responsible 
37.34 	for the performance of all plumbing work in accordance with sections 326B.41 to 
37.35 	326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all 
38.1 	orders issued under section 326B.082. A plumbing contractor's responsible licensed 
38.2 	plumber individual must be a master plumber. A restricted plumbing contractor's 
38.3 	responsible licensed plumber individual must be a master plumber or a restricted master 
38.4 	plumber. A plumbing contractor license authorizes the contractor to offer to perform 
38.5 	and, through licensed and registered individuals, to perform plumbing work in all areas 
38.6 	of the state. A restricted plumbing contractor license authorizes the contractor to offer 
38.7 	to perform and, through licensed and registered individuals, to perform plumbing work 
38.8 	in all areas of the state except in cities and towns with a population of more than 5,000 
38.9 	according to the last federal census.
38.10 	(b) If the contractor is an individual or sole proprietorship, the responsible licensed 
38.11 	plumber individual must be the individual, proprietor, or managing employee. If the 
38.12 	contractor is a partnership, the responsible licensed plumber individual must be a general 
38.13 	partner or managing employee. If the contractor is a limited liability company, the 
38.14 	responsible licensed plumber individual must be a chief manager or managing employee. 
38.15 	If the contractor is a corporation, the responsible licensed plumber individual must be 
38.16 	an officer or managing employee. If the responsible licensed plumber individual is a 
38.17 	managing employee, the responsible licensed plumber individual must be actively engaged 
38.18 	in performing plumbing work on behalf of the contractor, and cannot be employed in any 
38.19 	capacity as a plumber for any other contractor. An individual may be the responsible 
38.20 	licensed plumber individual for only one contractor.
38.21 	(c) All applications and renewals for contractor licenses shall include a verified 
38.22 	statement that the applicant or licensee has complied with this subdivision.

38.23 	Sec. 20. Minnesota Statutes 2010, section 326B.46, subdivision 2, is amended to read:
38.24 		Subd. 2.Bond; insurance. As a condition of licensing, each contractor (a) The 
38.25 	bond and insurance requirements of paragraphs (b) and (c) apply to each person who 
38.26 	performs or offers to perform plumbing work within the state, including any person who 
38.27 	offers to perform or performs sewer or water service installation without a contractor's 
38.28 	license. If the person performs or offers to perform any plumbing work other than sewer 
38.29 	or water service installation, then the person must meet the requirements of paragraphs 
38.30 	(b) and (c) as a condition of holding a contractor's license.
38.31 	(b) Each person who performs or offers to perform plumbing work within the state
38.32 	shall give and maintain bond to the state in the amount of at least $25,000 for (1) all 
38.33 	plumbing work entered into within the state or (2) all plumbing work and subsurface 
38.34 	sewage treatment work entered into within the state. If the bond is for both plumbing work 
38.35 	and subsurface sewage treatment work, the bond must comply with the requirements of 
39.1 	this section and section 115.56, subdivision 2, paragraph (e). The bond shall be for the 
39.2 	benefit of persons injured or suffering financial loss by reason of failure to comply with the 
39.3 	requirements of the State Plumbing Code and, if the bond is for both plumbing work and 
39.4 	subsurface sewage treatment work, financial loss by reason of failure to comply with the 
39.5 	requirements of sections 115.55 and 115.56. The bond shall be filed with the commissioner 
39.6 	and shall be written by a corporate surety licensed to do business in the state.
39.7 	In addition, as a condition of licensing, each contractor (c) Each person who 
39.8 	performs or offers to perform plumbing work within the state shall have and maintain in 
39.9 	effect public liability insurance, including products liability insurance with limits of at 
39.10 	least $50,000 per person and $100,000 per occurrence and property damage insurance 
39.11 	with limits of at least $10,000. The insurance shall be written by an insurer licensed to 
39.12 	do business in the state of Minnesota and. Each licensed master plumber person who 
39.13 	performs or offers to perform plumbing work within the state shall maintain on file 
39.14 	with the commissioner a certificate evidencing the insurance. In the event of a policy 
39.15 	cancellation, the insurer shall send written notice to the commissioner at the same time 
39.16 	that a cancellation request is received from or a notice is sent to the insured.

39.17 	Sec. 21. Minnesota Statutes 2010, section 326B.46, subdivision 3, is amended to read:
39.18 		Subd. 3.Bond and insurance exemption. If a master plumber or restricted master 
39.19 	plumber person who is in compliance with the bond and insurance requirements of 
39.20 	subdivision 2, employs a licensed plumber, the or an individual who has completed pipe 
39.21 	laying training as prescribed by the commissioner, that employee plumber shall not be 
39.22 	required to meet the bond and insurance requirements of subdivision 2. An individual who 
39.23 	is an employee working on the maintenance and repair of plumbing equipment, apparatus, 
39.24 	or facilities owned or leased by the individual's employer and which is within the limits of 
39.25 	property owned or leased, and operated or maintained by the individual's employer, shall 
39.26 	not be required to meet the bond and insurance requirements of subdivision 2.

39.27 	Sec. 22. Minnesota Statutes 2010, section 326B.47, subdivision 1, is amended to read:
39.28 		Subdivision 1.Registration; supervision; records. (a) All unlicensed individuals, 
39.29 	other than plumber's apprentices and individuals who have completed pipe laying training 
39.30 	as prescribed by the commissioner, must be registered under subdivision 3.
39.31 	(b) A plumber's apprentice or registered unlicensed individual is authorized to 
39.32 	assist in the installation of plumbing only while under the direct supervision of a master, 
39.33 	restricted master, journeyman, or restricted journeyman plumber. The master, restricted 
39.34 	master, journeyman, or restricted journeyman plumber is responsible for ensuring that all 
40.1 	plumbing work performed by the plumber's apprentice or registered unlicensed individual 
40.2 	complies with the plumbing code. The supervising master, restricted master, journeyman, 
40.3 	or restricted journeyman must be licensed and must be employed by the same employer 
40.4 	as the plumber's apprentice or registered unlicensed individual. Licensed individuals 
40.5 	shall not permit plumber's apprentices or registered unlicensed individuals to perform 
40.6 	plumbing work except under the direct supervision of an individual actually licensed to 
40.7 	perform such work. Plumber's apprentices and registered unlicensed individuals shall not 
40.8 	supervise the performance of plumbing work or make assignments of plumbing work 
40.9 	to unlicensed individuals.
40.10 	(c) Contractors employing plumber's apprentices or registered unlicensed individuals 
40.11 	to perform plumbing work shall maintain records establishing compliance with this 
40.12 	subdivision that shall identify all plumber's apprentices and registered unlicensed 
40.13 	individuals performing plumbing work, and shall permit the department to examine and 
40.14 	copy all such records.

40.15 	Sec. 23. Minnesota Statutes 2010, section 326B.47, subdivision 3, is amended to read:
40.16 		Subd. 3.Registration, rules, applications, renewals, and fees.  An unlicensed 
40.17 	individual may register by completing and submitting to the commissioner an application 
40.18 	form provided by the commissioner, with all fees required by section 326B.092. A 
40.19 	completed application form must state the date the individual began training, the 
40.20 	individual's age, schooling, previous experience, and employer, and other information 
40.21 	required by the commissioner. The Plumbing Board may prescribe rules, not inconsistent 
40.22 	with this section, for the registration of unlicensed individuals. Applications for initial 
40.23 	registration may be submitted at any time. Registration must be renewed annually and 
40.24 	shall be for the period from July 1 of each year to June 30 of the following year.

40.25 	Sec. 24. Minnesota Statutes 2010, section 326B.49, subdivision 1, is amended to read:
40.26 		Subdivision 1.Application, examination, and license fees. (a) Applications for 
40.27 	master and journeyman plumber's licenses shall be made to the commissioner, with 
40.28 	all fees required by section 326B.092. Unless the applicant is entitled to a renewal, 
40.29 	the applicant shall be licensed by the commissioner only after passing a satisfactory 
40.30 	examination developed and administered by the commissioner, based upon rules adopted 
40.31 	by the Plumbing Board, showing fitness.
40.32 	(b) All initial journeyman plumber's licenses shall be effective for more than one 
40.33 	calendar year and shall expire on December 31 of the year after the year in which the 
40.34 	application is made. All master plumber's licenses shall expire on December 31 of each 
41.1 	even-numbered year after issuance or renewal. The commissioner shall in a manner 
41.2 	determined by the commissioner, without the need for any rulemaking under chapter 14, 
41.3 	phase in the renewal of master and journeyman plumber's licenses from one year to two 
41.4 	years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be 
41.5 	two-year licenses.
41.6 	(c) Applications for contractor licenses shall be made to the commissioner, with all 
41.7 	fees required by section 326B.092. All contractor licenses shall expire on December 31 of 
41.8 	each odd-numbered year after issuance or renewal.
41.9 	(d) For purposes of calculating license fees and renewal license fees required under 
41.10 	section 326B.092:
41.11 	(1) the following licenses shall be considered business licenses: plumbing contractor 
41.12 	and restricted plumbing contractor;
41.13 	(2) the following licenses shall be considered master licenses: master plumber and 
41.14 	restricted master plumber;
41.15 	(3) the following licenses shall be considered journeyman licenses: journeyman 
41.16 	plumber and restricted journeyman plumber; and
41.17 	(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3, 
41.18 	shall be considered an entry level license.
41.19 	(e) For each filing of a certificate of responsible person individual by an employer, 
41.20 	the fee is $100.
41.21 	(f) The commissioner shall charge each person giving bond under section 326B.46, 
41.22 	subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a 
41.23 	licensed contractor.

41.24 	Sec. 25. Minnesota Statutes 2010, section 326B.56, subdivision 1, is amended to read:
41.25 		Subdivision 1.Bonds. (a) As a condition of licensing, each water conditioning 
41.26 	contractor shall give and maintain a bond to the state as described in paragraph (b). 
41.27 	No applicant for a water conditioning contractor or installer license who maintains the 
41.28 	bond under paragraph (b) shall be otherwise required to meet the bond requirements of 
41.29 	any political subdivision.
41.30 	(b) Each bond given to the state under this subdivision shall be in the total sum of 
41.31 	$3,000 conditioned upon the faithful and lawful performance of all water conditioning 
41.32 	installation or servicing done within the state. The bond shall be for the benefit of 
41.33 	persons suffering injuries or damages due to the work. The bond shall be filed with the 
41.34 	commissioner and shall be written by a corporate surety licensed to do business in this 
42.1 	state. The bond must remain in effect at all times while the application is pending and 
42.2 	while the license is in effect.

42.3 	Sec. 26. Minnesota Statutes 2010, section 326B.58, is amended to read:
42.4 	326B.58 FEES; RENEWAL.
42.5 	(a) Each initial water conditioning master and water conditioning journeyman 
42.6 	license shall be effective for more than one calendar year and shall expire on December 31 
42.7 	of the year after the year in which the application is made.
42.8 	(b) The commissioner shall in a manner determined by the commissioner, without 
42.9 	the need for any rulemaking under chapter 14, phase in the renewal of water conditioning 
42.10 	master and journeyman licenses from one year to two years. By June 30, 2011, all 
42.11 	renewed water conditioning contractor and installer licenses shall be two-year licenses. 
42.12 	The Plumbing Board may by rule prescribe for the expiration and renewal of licenses.
42.13 	(c) All water conditioning contractor licenses shall expire on December 31 of the 
42.14 	year after issuance or renewal.
42.15 	(d) For purposes of calculating license fees and renewal fees required under section 
42.16 	326B.092:
42.17 	(1) a water conditioning journeyman license shall be considered a journeyman 
42.18 	license;
42.19 	(2) a water conditioning master license shall be considered a master license; and
42.20 	(3) a water conditioning contractor license shall be considered a business license.

42.21 	Sec. 27. Minnesota Statutes 2010, section 326B.82, subdivision 2, is amended to read:
42.22 		Subd. 2.Appropriate and related knowledge. "Appropriate and related 
42.23 	knowledge" means facts, information, or principles that are clearly relevant to the licensee 
42.24 	in performinglicensee's responsibilities under a license issued by the commissioner. 
42.25 	These facts, information, or principles must convey substantive and procedural knowledge 
42.26 	as it relates to postlicensing issues and must be relevant to the technical aspects of a 
42.27 	particular area of continuing education regulated industry.

42.28 	Sec. 28. Minnesota Statutes 2010, section 326B.82, subdivision 3, is amended to read:
42.29 		Subd. 3.Classroom hour. "Classroom hour" means a 50-minute hour 50 minutes of 
42.30 	educational content.

42.31 	Sec. 29. Minnesota Statutes 2010, section 326B.82, subdivision 7, is amended to read:
43.1 		Subd. 7.Medical hardship. "Medical hardship" includes means a documented 
43.2 	physical disability or medical condition.

43.3 	Sec. 30. Minnesota Statutes 2010, section 326B.82, subdivision 9, is amended to read:
43.4 		Subd. 9.Regulated industries industry. "Regulated industries industry" means 
43.5 	residential contracting, residential remodeling, or residential roofing. Each of these is a 
43.6 	regulated industry any business, trade, profession, or occupation that requires a license 
43.7 	issued under this chapter or chapter 327B as a condition of doing business in Minnesota.

43.8 	Sec. 31. Minnesota Statutes 2010, section 326B.821, subdivision 1, is amended to read:
43.9 		Subdivision 1.Purpose. The purpose of this section is to establish standards 
43.10 	for residential building contractor continuing education. The standards must include 
43.11 	requirements for continuing education in the implementation of energy codes or energy 
43.12 	conservation measures applicable to residential buildings.

43.13 	Sec. 32. Minnesota Statutes 2010, section 326B.821, subdivision 5, is amended to read:
43.14 		Subd. 5.Content. (a) Continuing education consists of approved courses that 
43.15 	impart appropriate and related knowledge in the residential construction industry regulated 
43.16 	industries pursuant to sections 326B.802 to 326B.885 this chapter and other relevant
43.17 	applicable federal and state laws, rules, and regulations. Courses may include relevant 
43.18 	materials that are included in licensing exams subject to the limitations imposed in 
43.19 	subdivision 11. The burden of demonstrating that courses impart appropriate and related 
43.20 	knowledge is upon the person seeking approval or credit.
43.21 	(b) Except as required for Internet continuing education, course examinations will 
43.22 	not be required for continuing education courses unless they are required by the sponsor.
43.23 	(c) Textbooks are not required to be used for continuing education courses. If 
43.24 	textbooks are not used as part of the course, the sponsor must provide students with a 
43.25 	syllabus containing, at a minimum, the course title, the times and dates of the course 
43.26 	offering, the name, address, and telephone number of the course sponsor and, the name 
43.27 	and affiliation of the instructor, and a detailed outline of the subject materials to be 
43.28 	covered. Any written or printed material given to students must be of readable quality and 
43.29 	contain accurate and current information.
43.30 	(d) Upon completion of an approved course, licensees shall earn one hour of 
43.31 	continuing education credit for each classroom hour approved by the commissioner. One 
43.32 	credit hour of continuing education is equivalent to 50 minutes of educational content.
43.33 	Each continuing education course must be attended in its entirety in order to receive credit 
44.1 	for the number of approved hours. Courses may be approved for full or partial credit, 
44.2 	and for more than one regulated industry.
44.3 	(e) Continuing education credit in an approved course shall be awarded to presenting 
44.4 	instructors on the basis of one credit for each hour of preparation for the duration of the 
44.5 	initial presentation. Continuing education credit may not be earned if the licensee has 
44.6 	previously obtained credit for the same course as a licensee or as an instructor within the 
44.7 	three years immediately prior credits for completion of an approved course may only be 
44.8 	used once for renewal of a specific license.
44.9 	(e)(f) Courses will be approved using the following guidelines:
44.10 	(1) course content must demonstrate significant intellectual or practical content and 
44.11 	deal with matters directly related to the practice of residential construction in the regulated 
44.12 	industry, workforce safety, or the business of running a residential construction company
44.13 	in the regulated industry. Courses may also address the professional responsibility or 
44.14 	ethical obligations of residential contractors to homeowners and suppliers a licensee 
44.15 	related to work in the regulated industry;
44.16 	(2) the following courses may be automatically approved if they are specifically 
44.17 	designed for the residential construction regulated industry and are in compliance with 
44.18 	paragraph (f) (g):
44.19 	(i) courses approved by the Minnesota Board of Continuing Legal Education; or
44.20 	(ii) courses approved by the International Code Council, National Association of 
44.21 	Home Building, or other nationally recognized professional organization of the residential 
44.22 	construction regulated industry; and
44.23 	(3) courses must be presented and attended in a suitable classroom or construction 
44.24 	setting, except for Internet education courses which must meet the requirements of 
44.25 	subdivision 5a. Courses presented via video recording, simultaneous broadcast, or 
44.26 	teleconference may be approved provided the sponsor is available at all times during the 
44.27 	presentation, except for Internet education courses which must meet the requirements 
44.28 	of subdivision 5a.
44.29 	(f)(g) The following courses will not be approved for credit:
44.30 	(1) courses designed solely to prepare students for a license examination;
44.31 	(2) courses in mechanical office skills, including typing, speed reading, or other 
44.32 	machines or equipment. Computer courses are allowed, if appropriate and related to the 
44.33 	residential construction regulated industry;
44.34 	(3) courses in sales promotion, including meetings held in conjunction with the 
44.35 	general business of the licensee;
44.36 	(4) courses in motivation, salesmanship, psychology, or personal time management;
45.1 	(5) courses that are primarily intended to impart knowledge of specific products of 
45.2 	specific companies, if the use of the product or products relates to the sales promotion 
45.3 	or marketing of one or more of the products discussed; or
45.4 	(6) courses where any of the educational content of the course is the State Building 
45.5 	Code that include code provisions that have not been adopted into the State Building 
45.6 	Code unless the course materials clarify whether or notthat the code provisions have 
45.7 	been officially adopted into a future version of the State Building Code and the effective 
45.8 	date of enforcement, if applicable.
45.9 	(h) Nothing in this subdivision shall limit an authority expressly granted to the Board 
45.10 	of Electricity, Board of High Pressure Piping Systems, or Plumbing Board.

45.11 	Sec. 33. Minnesota Statutes 2010, section 326B.821, subdivision 5a, is amended to 
45.12 	read:
45.13 		Subd. 5a.Internet continuing education. (a) The design and delivery of an Internet 
45.14 	continuing education course must be approved by the International Distance Education 
45.15 	Certification Center (IDECC) before the course is submitted for the commissioner's 
45.16 	approval. The IDECC approval must accompany the course submitted.
45.17 	(b) An Internet continuing education course must:
45.18 	(1) specify the minimum computer system requirements;
45.19 	(2) provide encryption that ensures that all personal information, including the 
45.20 	student's name, address, and credit card number, cannot be read as it passes across the 
45.21 	Internet;
45.22 	(3) include technology to guarantee seat time;
45.23 	(4) include a high level of interactivity;
45.24 	(5) include graphics that reinforce the content;
45.25 	(6) include the ability for the student to contact an instructor or course sponsor 
45.26 	within a reasonable amount of time;
45.27 	(7) include the ability for the student to get technical support within a reasonable 
45.28 	amount of time;
45.29 	(8) include a statement that the student's information will not be sold or distributed 
45.30 	to any third party without prior written consent of the student. Taking the course does not 
45.31 	constitute consent;
45.32 	(9) be available 24 hours a day, seven days a week, excluding minimal downtime 
45.33 	for updating and administration, except that this provision does not apply to live courses 
45.34 	taught by an actual instructor and delivered over the Internet;
46.1 	(10) provide viewing access to the online course at all times to the commissioner, 
46.2 	excluding minimal downtime for updating and administration;
46.3 	(11) include a process to authenticate the student's identity;
46.4 	(12) inform the student and the commissioner how long after its purchase a course 
46.5 	will be accessible;
46.6 	(13) inform the student that license education credit will not be awarded for taking 
46.7 	the course after it loses its status as an approved course;
46.8 	(14) provide clear instructions on how to navigate through the course;
46.9 	(15) provide automatic bookmarking at any point in the course;
46.10 	(16) provide questions after each unit or chapter that must be answered before the 
46.11 	student can proceed to the next unit or chapter;
46.12 	(17) include a reinforcement response when a quiz question is answered correctly;
46.13 	(18) include a response when a quiz question is answered incorrectly;
46.14 	(19) include a final examination in which the student must correctly answer 70 
46.15 	percent of the questions;
46.16 	(20) allow the student to go back and review any unit at any time, except during the 
46.17 	final examination;
46.18 	(21) provide a course evaluation at the end of the course. At a minimum, the 
46.19 	evaluation must ask the student to report any difficulties caused by the online education 
46.20 	delivery method;
46.21 	(22) provide a completion certificate when the course and exam have been completed 
46.22 	and the provider has verified the completion. Electronic certificates are sufficient and shall 
46.23 	include the name of the provider, date and location of the course, educational program 
46.24 	identification that was provided by the department, hours of instruction or continuing 
46.25 	education hours, and licensee's or attendee's name and license, certification, or registration 
46.26 	number or the last four digits of the licensee's or attendee's Social Security number; and
46.27 	(23) allow the commissioner the ability to electronically review the class to 
46.28 	determine if credit can be approved.
46.29 	(c) The final examination must be either an encrypted online examination or a 
46.30 	paper examination that is monitored by a proctor who certifies that the student took the 
46.31 	examination.

46.32 	Sec. 34. Minnesota Statutes 2010, section 326B.821, subdivision 6, is amended to read:
46.33 		Subd. 6.Course approval. (a) Courses must be approved by the commissioner 
46.34 	in advance and will be approved on the basis of the applicant's compliance with the 
46.35 	provisions of this section relating to continuing education in the regulated industries. The 
47.1 	commissioner shall make the final determination as to the approval and assignment of 
47.2 	credit hours for courses. Courses must be at least one hour in length.
47.3 	Licensees requesting credit for continuing education courses that have not been 
47.4 	previously approved by the commissioner shall, on a form prescribed by the commissioner, 
47.5 	submit an application for approval of continuing education credit accompanied by a 
47.6 	nonrefundable fee of $20 for each course to be reviewed. To be approved, courses must be 
47.7 	in compliance with the provisions of this section governing the types of courses that will 
47.8 	and will not be approved.
47.9 	Approval will not be granted for time spent on meals or other unrelated activities. 
47.10 	Breaks may not be accumulated in order to dismiss the class early. Classes shall not be 
47.11 	offered by a provider to any one student for longer than eight hours in one day, excluding 
47.12 	meal breaks.
47.13 	(b) Application for course approval must be submitted on a form approved by the 
47.14 	commissioner at least 30 days before the course offering.
47.15 	(c) Approval must be granted for a subsequent offering of identical continuing 
47.16 	education courses without requiring a new application if a notice of the subsequent 
47.17 	offering is filed with the commissioner at least 30 days in advance of the date the course is 
47.18 	to be held. The commissioner shall deny future offerings of courses if they are found not 
47.19 	to be in compliance with the laws relating to course approval.

47.20 	Sec. 35. Minnesota Statutes 2010, section 326B.821, subdivision 7, is amended to read:
47.21 		Subd. 7.Courses open to all. All course offerings must be open to any interested 
47.22 	individuals. Access may be restricted by the sponsor based on class size only. Courses 
47.23 	must shall not be approved if attendance is restricted to any particular group of people, 
47.24 	except for company-sponsored courses allowed by applicable law.

47.25 	Sec. 36. Minnesota Statutes 2010, section 326B.821, subdivision 8, is amended to read:
47.26 		Subd. 8.Course sponsor. (a) Each course of study shall have at least one sponsor, 
47.27 	approved by the commissioner, who is responsible for supervising the program and 
47.28 	ensuring compliance with all relevant law. Sponsors may engage an additional approved 
47.29 	sponsor in order to assist the sponsor or to act as a substitute for the sponsor in the event 
47.30 	of an emergency or illness.
47.31 	(b) Sponsors must submit an application and sworn statement stating they agree to 
47.32 	abide by the requirements of this section and any other applicable statute or rule pertaining 
47.33 	to residential construction continuing education in the regulated industry.
47.34 	(c) A sponsor may also be an instructor.
48.1 	(d) Failure to comply with requirementsparagraph (b) may result in loss of sponsor 
48.2 	approval for up to two years in accordance with section 326B.082.

48.3 	Sec. 37. Minnesota Statutes 2010, section 326B.821, subdivision 9, is amended to read:
48.4 		Subd. 9.Responsibilities. A sponsor is responsible for:
48.5 	(1) ensuring compliance with all laws and rules relating to continuing educational 
48.6 	offerings governed by the commissioner;
48.7 	(2) ensuring that students are provided with current and accurate information relating 
48.8 	to the laws and rules governing their licensed activity the regulated industry;
48.9 	(3) supervising and evaluating courses and instructors. Supervision includes 
48.10 	ensuring that all areas of the curriculum are addressed without redundancy and that 
48.11 	continuity is present throughout the entire course;
48.12 	(4) ensuring that instructors are qualified to teach the course offering;
48.13 	(5) furnishing the commissioner, upon request, with copies of course and instructor
48.14 	evaluations and. Evaluations must be completed by students at the time the course is 
48.15 	offered;
48.16 	(6) furnishing the commissioner, upon request, with copies of the qualifications of 
48.17 	instructors. Evaluations must be completed by students at the time the course is offered 
48.18 	and by sponsors within five days after the course offering;
48.19 	(6)(7) investigating complaints related to course offerings or instructors. A copy 
48.20 	of the written complaint must be sent to the commissioner within ten days of receipt of 
48.21 	the complaint and a copy of the complaint resolution must be sent not more than ten 
48.22 	days after resolution is reached;
48.23 	(7)(8) maintaining accurate records relating to course offerings, instructors, tests 
48.24 	taken by students if required, and student attendance for a period of three years from the 
48.25 	date on which the course was completed. These records must be made available to the 
48.26 	commissioner upon request. In the event the sponsor ceases operations before termination 
48.27 	of the sponsor application, the sponsor must provide to the commissioner digital copies of 
48.28 	all course and attendance records of courses held for the previous three years;
48.29 	(8)(9) attending workshops or instructional programs as reasonably required by 
48.30 	the commissioner;
48.31 	(9)(10) providing course completion certificates within ten days of, but not before, 
48.32 	completion of the entire course. A sponsor may require payment of the course tuition as a 
48.33 	condition of receiving the course completion certificate. Course completion certificates 
48.34 	must be completed in their entirety. Course completion certificates mustand shall contain 
48.35 	the following:
49.1 	(i) the statement: "If you have any comments about this course offering, please mail 
49.2 	them to the Minnesota Department of Labor and Industry.";
49.3 	(ii) the current address of the department must be included. A sponsor may require 
49.4 	payment of the course tuition as a condition for receiving the course completion certificate, 
49.5 	name of the provider, date and location of the course, educational program identification 
49.6 	provided by the department, and hours of instruction or continuing education hours; and
49.7 	(iii) the licensee's or attendee's name and license, certificate, or registration number 
49.8 	or the last four digits of the licensee's or attendee's Social Security number; and
49.9 	(10)(11) notifying the commissioner in writing within ten days of any change in the 
49.10 	information in an application for approval on file with the commissioner.

49.11 	Sec. 38. Minnesota Statutes 2010, section 326B.821, subdivision 10, is amended to 
49.12 	read:
49.13 		Subd. 10.Instructors. (a) Each continuing education course shall have an instructor 
49.14 	who is qualified by education, training, or experience to ensure competent instruction. 
49.15 	Failure to have only qualified instructors teach at an approved course offering will result in 
49.16 	loss of course approval. Sponsors are responsible to ensure that an instructor is qualified 
49.17 	to teach the course offering.
49.18 	(b) Qualified continuing education instructors must have one of the following 
49.19 	qualifications:
49.20 	(1) four years' practical experience in the subject area being taught;
49.21 	(2) a college or graduate degree in the subject area being taught;
49.22 	(3) direct experience in the development of laws, rules, or regulations related to the 
49.23 	residential construction regulated industry; or
49.24 	(4) demonstrated expertise in the subject area being taught. Instructors providing 
49.25 	instruction related to electricity, plumbing, or high pressure piping systems must comply 
49.26 	with all applicable continuing education rules adopted by the Board of Electricity, the 
49.27 	Plumbing Board, or the Board of High Pressure Piping Systems.
49.28 	(c) ApprovedQualified continuing education instructors are responsible for:
49.29 	(1) compliance with all laws and rules relating to continuing education;
49.30 	(2) providing students with current and accurate information;
49.31 	(3) maintaining an atmosphere conducive to learning in the classroom;
49.32 	(4) verifying attendance of students, and certifying course completion;
49.33 	(5) providing assistance to students and responding to questions relating to course 
49.34 	materials; and
50.1 	(6) attending the workshops or instructional programs that are required by the 
50.2 	commissioner.

50.3 	Sec. 39. Minnesota Statutes 2010, section 326B.821, subdivision 11, is amended to 
50.4 	read:
50.5 		Subd. 11.Prohibited practices for sponsors and instructors. (a) In connection 
50.6 	with an approved continuing education course, sponsors and instructors shall not:
50.7 	(1) recommend or, promote, or disparage the specific services, products, processes, 
50.8 	procedures, or practices of a particular business person in the regulated industry;
50.9 	(2) encourage or recruit individuals students to engage the services of, or become 
50.10 	associated with, a particular business;
50.11 	(3) use materials for the sole purpose of promoting a particular business;
50.12 	(4) require students to participate in other programs or services offered by an 
50.13 	instructor or sponsor;
50.14 	(5) attempt, either directly or indirectly, to discover questions or answers on an 
50.15 	examination for a license;
50.16 	(6) disseminate to any other person specific questions, problems, or information 
50.17 	known or believed to be included in licensing examinations;
50.18 	(7) misrepresent any information submitted to the commissioner;
50.19 	(8) fail to reasonably cover, or ensure coverage of, all points, issues, and concepts 
50.20 	contained in the course outline approved by the commissioner during the approved 
50.21 	instruction; or
50.22 	(9) issue inaccurate course completion certificates.
50.23 	(b) Sponsors shall notify the commissioner within ten days of a felony or gross 
50.24 	misdemeanor conviction or of disciplinary action taken against an occupational or 
50.25 	professional license held by the sponsor or an instructor teaching an approved course. The 
50.26 	notification conviction or disciplinary action shall be grounds for the commissioner to 
50.27 	withdraw the approval of the sponsor and to disallow the use of the sponsor or instructor.

50.28 	Sec. 40. Minnesota Statutes 2010, section 326B.821, subdivision 12, is amended to 
50.29 	read:
50.30 		Subd. 12.Fees Course tuition. Fees Tuition for an approved course of study 
50.31 	and related materials must be clearly identified to students. In the event that a course is 
50.32 	canceled for any reason, all fees tuition must be returned within 15 days from the date of 
50.33 	cancellation. In the event that a course is postponed for any reason, students shall be given 
50.34 	the choice of attending the course at a later date or having their fees tuition refunded in 
51.1 	full within 15 days from the date of postponement. If a student is unable to attend a course 
51.2 	or cancels the registration in a course, sponsor policies regarding refunds shall govern.

51.3 	Sec. 41. Minnesota Statutes 2010, section 326B.821, subdivision 15, is amended to 
51.4 	read:
51.5 		Subd. 15.Advertising courses. (a) Paragraphs (b) to (g) govern the advertising 
51.6 	of continuing education courses.
51.7 	(b) Advertising must be truthful and not deceptive or misleading. Courses may 
51.8 	not be advertised as approved for continuing education credit unless approval has been 
51.9 	granted in writing by the commissioner.
51.10 	(c) Once a course is approved, all advertisement, pamphlet, circular, or other similar 
51.11 	materials pertaining to an approved course circulated or distributed in this state, must 
51.12 	prominently display the following statement:
51.13 	"This course has been approved by the Minnesota Department of Labor and Industry 
51.14 	for ....... (approved number of hours) hours for residential contractor ....... (regulated 
51.15 	industry) continuing education."
51.16 	(d) Advertising of approved courses must be clearly distinguishable from the 
51.17 	advertisement of other nonapproved courses and services.
51.18 	(e) Continuing education courses may not be advertised before approval unless the 
51.19 	course is described in any advertising as "approval pending." The sponsor must verbally 
51.20 	notify licensees students before commencement of the course if the course has been 
51.21 	denied credit, has not been approved for credit, or has only been approved for partial 
51.22 	credit by the commissioner.
51.23 	(f) The number of hours for which a course has been approved must be prominently 
51.24 	displayed on an advertisement for the course. If the course offering is longer than the 
51.25 	number of hours of credit to be given, it must be clear that credit is not earned for the 
51.26 	entire course.
51.27 	(g) The course approval number must not be included in any advertisement.

51.28 	Sec. 42. Minnesota Statutes 2010, section 326B.821, subdivision 16, is amended to 
51.29 	read:
51.30 		Subd. 16.Notice to students. At the beginning of each approved offering, the 
51.31 	following notice must be handed out in printed form or must be read to students:
51.32 	"This educational offering is recognized by the Minnesota Department of Labor and 
51.33 	Industry as satisfying ....... (insert number of hours approved) hours of credit toward 
51.34 	residential contractor (insert regulated industry) continuing education requirements."

52.1 	Sec. 43. Minnesota Statutes 2010, section 326B.821, subdivision 18, is amended to 
52.2 	read:
52.3 		Subd. 18.Falsification of reports or certificates. A licensee, its qualified person
52.4 	qualifying individual, or an applicant found to have falsified an education report or 
52.5 	certificate to the commissioner shall be considered to have violated the laws relating to 
52.6 	the regulated industry for which the person has a license and shall be subject to censure, 
52.7 	limitation, condition, suspension, or revocation of the license or denial of the application 
52.8 	for licensure the enforcement provisions of section 326B.082.
52.9 	The commissioner reserves the right to audit a licensee's continuing education 
52.10 	records.

52.11 	Sec. 44. Minnesota Statutes 2010, section 326B.821, subdivision 19, is amended to 
52.12 	read:
52.13 		Subd. 19.Waivers and extensions. If a licensee provides documentation to the 
52.14 	commissioner that the licensee or its qualifying person is unable, and will continue to be 
52.15 	unable, to attend actual classroom course work because of a physical disability, medical 
52.16 	condition, or similar reason, attendance at continuing education courses shall be waived 
52.17 	for a period not to exceed one year. The commissioner shall require that the licensee or 
52.18 	its qualifying person satisfactorily complete a self-study program to include reading a 
52.19 	sufficient number of textbooks, or listening to a sufficient number of tapes, related to the 
52.20 	residential building contractor industry, as would be necessary for the licensee to satisfy 
52.21 	continuing educational credit hour needs. The commissioner shall award the licensee 
52.22 	credit hours for a self-study program by determining how many credit hours would 
52.23 	be granted to a classroom course involving the same material and giving the licensee 
52.24 	the same number of credit hours under this section. The licensee may apply each year 
52.25 	for a new waiver upon the same terms and conditions as were necessary to secure the 
52.26 	original waiver, and must demonstrate that in subsequent years, the licensee was unable to 
52.27 	complete actual classroom course work. The commissioner may request documentation 
52.28 	of the condition upon which the request for waiver is based as is necessary to satisfy 
52.29 	the commissioner of the existence of the condition and that the condition does preclude 
52.30 	attendance at continuing education courses.
52.31 	Upon written proof demonstrating a medical hardship, the commissioner shall 
52.32 	extend, for up to 90 days, the time period during which the continuing education must be 
52.33 	successfully completed. Loss of income from either attendance at courses or cancellation 
52.34 	of a license is not a bona fide financial hardship. Requests for extensions must be 
52.35 	submitted to the commissioner in writing no later than 60 days before the education is 
53.1 	due and must include an explanation with verification of the hardship, plus verification of 
53.2 	enrollment at an approved course of study on or before the extension period expires.

53.3 	Sec. 45. Minnesota Statutes 2010, section 326B.821, subdivision 20, is amended to 
53.4 	read:
53.5 		Subd. 20.Reporting requirements. Required Continuing education credits must 
53.6 	be reported by the sponsor in a manner prescribed by the commissioner. Licensees are 
53.7 	responsible for maintaining copies of course completion certificates.

53.8 	Sec. 46. Minnesota Statutes 2010, section 326B.821, subdivision 22, is amended to 
53.9 	read:
53.10 		Subd. 22.Continuing education approval.  Continuing education courses must be 
53.11 	approved in advance by the commissioner of labor and industry. "Sponsor" means any 
53.12 	person or entity offering approved education.

53.13 	Sec. 47. Minnesota Statutes 2010, section 326B.821, subdivision 23, is amended to 
53.14 	read:
53.15 		Subd. 23.Continuing education fees. The following fees shall be paid to the 
53.16 	commissioner:
53.17 	(1) initial course approval, $20 for each hour or fraction of one hour of continuing 
53.18 	education course approval sought. Initial course approval expires on the last day of the 
53.19 	24th 36th month after the course is approved;
53.20 	(2) renewal of course approval, $20 per course. Renewal of course approval expires 
53.21 	on the last day of the 24th month after the course is renewed;
53.22 	(3)(2) initial sponsor approval, $100. Initial sponsor approval expires on the last 
53.23 	day of the 24th month after the sponsor is approved; and
53.24 	(4)(3) renewal of sponsor approval, $20 $100. Renewal of sponsor approval expires 
53.25 	on the last day of the 24th month after the sponsor is renewed.

53.26 	Sec. 48. Minnesota Statutes 2010, section 326B.865, is amended to read:
53.27 	326B.865 SIGN CONTRACTOR; BOND.
53.28 	(a) A sign contractor may post a compliance bond with the commissioner, 
53.29 	conditioned that the sign contractor shall faithfully perform duties and comply with laws, 
53.30 	ordinances, rules, and contracts entered into for the installation of signs. The bond must 
53.31 	be renewed biennially and maintained for so long as determined by the commissioner. 
53.32 	The aggregate liability of the surety on the bond to any and all persons, regardless of the 
54.1 	number of claims made against the bond, may not exceed the annual amount of the bond. 
54.2 	The bond may be canceled as to future liability by the surety upon 30 days' written notice 
54.3 	mailed to the commissioner by United States mail.
54.4 	(b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a 
54.5 	local unit of government that requires sign contractors to post a compliance bond. The 
54.6 	bond is in lieu of any compliance bond required by a local unit of government.
54.7 	(c) For purposes of this section, "sign" means a device, structure, fixture, or 
54.8 	placard using graphics, symbols, or written copy that is erected on the premises of an 
54.9 	establishment including the name of the establishment or identifying the merchandise, 
54.10 	services, activities, or entertainment available on the premises.
54.11 	(d) Each person giving bond under this section shall pay a biennial bond filing fee of 
54.12 	$100 to the commissioner of labor and industry. 

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

54.14 	Sec. 49. Minnesota Statutes 2010, section 326B.89, subdivision 6, is amended to read:
54.15 		Subd. 6.Verified application. To be eligible for compensation from the fund, an 
54.16 	owner or lessee shall serve on the commissioner a verified application for compensation 
54.17 	on a form approved by the commissioner. The application shall verify the following 
54.18 	information:
54.19 	(1) the specific grounds upon which the owner or lessee seeks to recover from 
54.20 	the fund:
54.21 	(2) that the owner or the lessee has obtained a final judgment in a court of competent 
54.22 	jurisdiction against a licensee licensed under section 326B.83;
54.23 	(3) that the final judgment was obtained against the licensee on the grounds 
54.24 	of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of 
54.25 	performance that arose directly out of a contract directly between the licensee and the 
54.26 	homeowner or lessee that was entered into prior to the cause of action and that occurred 
54.27 	when the licensee was licensed and performing any of the special skills enumerated under 
54.28 	section 326B.802, subdivision 15;
54.29 	(4) the amount of the owner's or the lessee's actual and direct out-of-pocket loss on 
54.30 	the owner's residential real estate, on residential real estate leased by the lessee, or on new 
54.31 	residential real estate that has never been occupied or that was occupied by the licensee 
54.32 	for less than one year prior to purchase by the owner;
54.33 	(5) that the residential real estate is located in Minnesota;
54.34 	(6) that the owner or the lessee is not the spouse of the licensee or the personal 
54.35 	representative of the licensee;
55.1 	(7) the amount of the final judgment, any amount paid in satisfaction of the final 
55.2 	judgment, and the amount owing on the final judgment as of the date of the verified 
55.3 	application;
55.4 	(8) that the owner or lessee has diligently pursued remedies against all the judgment 
55.5 	debtors and all other persons liable to the judgment debtor in the contract for which the 
55.6 	owner or lessee seeks recovery from the fund; and
55.7 	(9) that the verified application is being served within two years after the judgment 
55.8 	became final.
55.9 	The verified application must include documents evidencing the amount of the 
55.10 	owner's or the lessee's actual and direct out-of-pocket loss. The owner's and the lessee's 
55.11 	actual and direct out-of-pocket loss shall not include any attorney fees, litigation costs 
55.12 	or fees, interest on the loss, and interest on the final judgment obtained as a result of the 
55.13 	loss or any costs not directly related to the value difference between what was contracted 
55.14 	for and what was provided. Any amount paid in satisfaction of the final judgment shall 
55.15 	be applied to the owner's or lessee's actual and direct out-of-pocket loss. An owner or 
55.16 	lessee may serve a verified application regardless of whether the final judgment has been 
55.17 	discharged by a bankruptcy court. A judgment issued by a court is final if all proceedings 
55.18 	on the judgment have either been pursued and concluded or been forgone, including all 
55.19 	reviews and appeals. For purposes of this section, owners who are joint tenants or tenants 
55.20 	in common are deemed to be a single owner. For purposes of this section, owners and 
55.21 	lessees eligible for payment of compensation from the fund shall not include government 
55.22 	agencies, political subdivisions, financial institutions, and any other entity that purchases, 
55.23 	guarantees, or insures a loan secured by real estate.

55.24 	Sec. 50. Minnesota Statutes 2010, section 326B.89, subdivision 8, is amended to read:
55.25 		Subd. 8.Administrative hearing. If an owner or a lessee timely serves a request 
55.26 	for hearing under subdivision 7, the commissioner shall request that an administrative law 
55.27 	judge be assigned and that a hearing be conducted under the contested case provisions of 
55.28 	chapter 14 within 45 days after the commissioner received the request for hearing, unless 
55.29 	the parties agree to a later date. The commissioner must notify the owner or lessee of the 
55.30 	time and place of the hearing at least 15 days before the hearing. Upon petition of the 
55.31 	commissioner, the administrative law judge shall continue the hearing up to 60 days and 
55.32 	upon a showing of good cause may continue the hearing for such additional period as the 
55.33 	administrative law judge deems appropriate.
55.34 	At the hearing the owner or the lessee shall have the burden of proving by substantial 
55.35 	evidence under subdivision 6, clauses (1) to (8). Whenever an applicant's judgment 
56.1 	is by default, stipulation, or consent, or whenever the action against the licensee was 
56.2 	defended by a trustee in bankruptcy, the applicant shall have the burden of proving the 
56.3 	cause of action for fraudulent, deceptive, or dishonest practices, conversion of funds, or 
56.4 	failure of performance. Otherwise, the judgment shall create a rebuttable presumption 
56.5 	of the fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of 
56.6 	performance. This presumption affects the burden of producing evidence.
56.7 	The administrative law judge shall issue findings of fact, conclusions of law, and 
56.8 	order. If the administrative law judge finds that compensation should be paid to the owner 
56.9 	or the lessee, the administrative law judge shall order the commissioner to make payment 
56.10 	from the fund of the amount it finds to be payable pursuant to the provisions of and in 
56.11 	accordance with the limitations contained in this section. The order of the administrative 
56.12 	law judge shall constitute the final decision of the agency in the contested case. The 
56.13 	commissioner or the owner or lessee may seek judicial review of the administrative law 
56.14 	judge's findings of fact, conclusions of law, and order shall be in accordance with sections 
56.15 	14.63 to 14.69.

56.16 	Sec. 51. Minnesota Statutes 2010, section 327.32, subdivision 1a, is amended to read:
56.17 		Subd. 1a.Requirement; used manufactured homes. No person shall sell or 
56.18 	offer for sale in this state any used manufactured home manufactured after June 14, 
56.19 	1976, or install for occupancy any used manufactured home manufactured after June 
56.20 	14, 1976, unless the used manufactured home complies with the Notice of Compliance 
56.21 	Form as provided in this subdivision. If manufactured after June 14, 1976, the home 
56.22 	must bear a label as required by the secretary. The Notice of Compliance Form shall be 
56.23 	signed by the seller and purchaser indicating which party is responsible for either making 
56.24 	or paying for any necessary corrections prior to the sale and transferring ownership of 
56.25 	the manufactured home.
56.26 	The Notice of Compliance Form shall be substantially in the following form:
56.27 	"Notice of Compliance Form as required in Minnesota Statutes, 
56.28 	section 327.32, subdivision 1
56.29 	This notice must be completed and signed by the purchaser(s) and the seller(s) of the 
56.30 	used manufactured home described in the purchase agreement and on the bottom of this 
56.31 	notice before the parties transfer ownership of a used manufactured home constructed 
56.32 	after June 14, 1976.
57.1 	Electric ranges and clothes dryers must have required four-conductor cords and plugs. For 
57.2 	the purpose of complying with the requirements of section 327B.06, a licensed retailer or 
57.3 	limited retailer shall retain at least one copy of the form required under this subdivision.

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

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

57.15	Complies ..........
	Correction required ..........
	
57.16	Initialed by Responsible Party: Buyer ..........
	Seller ..........
	
57.17 	Smoke alarms are required to be installed and operational in accordance with Code of 
57.18 	Federal Regulations, title 24, section 3280.208.

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

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

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

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

58.6	Complies ..........
	Correction required ..........
	
58.7	Initialed by Responsible Party: Buyer ..........
	Seller ..........
	
58.8 	The home complies with the snowload and heat zone requirements for the state of 
58.9 	Minnesota as indicated by the data plate.

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

58.18	Signature of Purchaser(s) of Home
		
58.19	..............................date..............................
	..............................date..............................
	
58.20	...................................................................
	...................................................................
	
58.21
58.22	Print name as appears on purchase 
agreement
	Print name as appears on purchase 
agreement
	
58.23	Signature of Seller(s) of Home
		
58.24	..............................date..............................
	..............................date..............................
	
58.25	...................................................................
	...................................................................
	
58.26	Print name and license number, if applicable
	Print name and license number, if applicable
	
58.27	(Street address of home at time of sale)
		
58.28	................................................................................................................................
	
58.29	(City/State/Zip).......................................................................................................
	
58.30	Name of manufacturer of home............................................................................
	
58.31	Model and year.....................................................................................................
	
58.32	Serial number........................................................................................................"

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

58.34 	Sec. 52. Minnesota Statutes 2010, section 327.32, subdivision 1b, is amended to read:
58.35 		Subd. 1b.Alternative design plan. An alternative frost-free design slab for a new 
58.36 	or used manufactured home that is submitted to the local building official, third-party 
59.1 	inspector, or the department, stamped by a licensed professional engineer or architect, and 
59.2 	is as being in compliance with either the federal installation standards in effect at the date 
59.3 	of manufacture, the manufacturer's installation manual,  or the Minnesota State Building 
59.4 	Code, when applicable, shall be issued a permit by the department or approval within ten 
59.5 	days of being received by the approving authority.

59.6 	Sec. 53. Minnesota Statutes 2010, section 327.32, subdivision 1e, is amended to read:
59.7 		Subd. 1e.Reinstallation requirements for single-section used manufactured 
59.8 	homes. (a) All single-section used manufactured homes reinstalled less than 24 months 
59.9 	from the date of installation by the first purchaser must be reinstalled in compliance with 
59.10 	subdivision 1c. All single-section used manufactured homes reinstalled more than 24 
59.11 	months from the date of installation by the first purchaser may be reinstalled without 
59.12 	a frost-protected foundation if the home is reinstalled in compliance with Minnesota 
59.13 	Rules, chapter 1350, for above frost-line installations and the notice requirement of 
59.14 	subdivision 1f is complied with by the seller and the purchaser of the single-section used 
59.15 	manufactured home.
59.16 	(b) The installer shall affix an installation seal issued by the department to the 
59.17 	outside of the home as required by the Minnesota State Building Code. The certificate 
59.18 	of installation issued by the installer of record shall clearly state that the home has been 
59.19 	reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and 
59.20 	for issuance of reinstallation seals shall follow the requirements of sections 326B.802 
59.21 	to 326B.885. Fees for review of plans, specifications, and on-site inspections shall be 
59.22 	those as specified in section 326B.153, subdivision 1, paragraph (c). Whenever an 
59.23 	installation certificate for an above frost-line installation is issued to a single-section used 
59.24 	manufactured home being listed for sale, the purchase agreement must disclose that the 
59.25 	home is installed on a nonfrost-protected foundation and recommend that the purchaser 
59.26 	have the home inspected to determine the effects of frost on the home.

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

59.28 	Sec. 54. Minnesota Statutes 2010, section 327.32, subdivision 1f, is amended to read:
59.29 		Subd. 1f.Notice requirement. The seller of the single-section used manufactured 
59.30 	home being reinstalled under subdivision 1e shall provide the following notice to the 
59.31 	purchaser and secure signatures of all parties to the purchase agreement on or before 
59.32 	signing a purchase agreement prior to submitting an application for an installation 
59.33 	certificate. Whenever a current owner of a manufactured home reinstalls the manufactured 
59.34 	home under subdivision 1e, the current owner is not required to comply with the notice 
60.1 	requirement under this subdivision. The notice shall be in at least 14-point font, except the 
60.2 	heading, "WHICH MAY VOID WARRANTY," must be in capital letters, in 20-point font. 
60.3 	The notice must be printed on a separate sheet of paper in a color different than the paper 
60.4 	on which the purchase agreement is printed. The notice becomes a part of the purchase 
60.5 	agreement and shall be substantially in the following form:
60.6 	"Notice of Reinstalling of a Single-Section Used Manufactured Home Above Frost-Line;
60.7 	WHICH MAY VOID WARRANTY
60.8 	It is recommended that the single-section used manufactured home being reinstalled 
60.9 	follow the instructions in the manufacturer's installation manual. By signing this notice, 
60.10 	the purchaser(s) are acknowledging they have elected to use footings placed above the 
60.11 	local frost line in accordance with the Minnesota State Building Code.
60.12 	The seller has explained the differences between the manufacturer's installation 
60.13 	instructions and the installation system selected by the purchaser(s) with respect to 
60.14 	possible effects of frost on the manufactured home.
60.15 	The purchaser(s) acknowledge by signing this notice that there is no manufacturer's 
60.16 	original warranty remaining on the home and recognize that any other extended or ancillary 
60.17 	warranty could be adversely affected if any applicable warranty stipulates that the home 
60.18 	be installed in accordance with the manufacturer's installation manual to remain effective.
60.19 	After the reinstallation of the manufactured home, it is highly recommended that the 
60.20 	purchaser(s) have a licensed manufactured home installer recheck the home's installation 
60.21 	for any releveling needs or anchoring system adjustments each freeze-thaw cycle.
60.22 	The purchaser(s) of the used manufactured home described below that is being reinstalled 
60.23 	acknowledge they have read this notice and have been advised to contact the manufacturer 
60.24 	of the home and/or the Department of Labor and Industry if they desire additional 
60.25 	information before signing this notice. It is the intent of this notice to inform the 
60.26 	purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system 
60.27 	for the reinstallation of the manufactured home as originally required by the home's 
60.28 	installation manual.
60.29 	Plain language notice.
60.30 	I understand that because this home will be installed with footings placed above the 
60.31 	local frost line, this home may be subject to adverse effects from frost heave that may 
60.32 	damage this home. Purchaser(s) initials: .......
60.33 	I understand that the installation of this home with footings placed above the local 
60.34 	frost line could affect my ability to obtain a mortgage or mortgage insurance on this 
60.35 	home. Purchaser(s) initials: .......
61.1 	I understand that the installation of this home with footings placed above the local 
61.2 	frost line could void my warranty on the home if any warranty is still in place on this 
61.3 	home. Purchaser(s) initials: .......

61.4	Signature of Purchaser(s)
		
61.5	..............................date..............................
	..............................date..............................
	
61.6	...................................................................
	...................................................................
	
61.7	Print name
	Print name
	
61.8
61.9	(Street address of location where 
manufactured home is being reinstalled)
		
61.10	..............................................................................................................................
	
61.11	(City/State/Zip)....................................................................................................
	
61.12	Name of manufacturer of home.........................................................................
	
61.13	Model and year...................................................................................................
	
61.14	Serial number.....................................................................................................
	
61.15 	Name of licensed installer and license number or homeowner responsible for the 
61.16 	installation of the home as described above.

61.17	Installer name:...................................................................................................
	
61.18	License number:................................................................................................"

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

61.20 	Sec. 55. Minnesota Statutes 2010, section 327.32, subdivision 7, is amended to read:
61.21 		Subd. 7.Enforcement. All jurisdictions enforcing the State Building Code, in 
61.22 	accordance with sections 326B.101 to 326B.151, shall undertake or provide for the 
61.23 	administration and enforcement of the manufactured home installation rules promulgated 
61.24 	by the commissioner. Municipalities which have adopted the State Building Code may 
61.25 	provide installation inspection and plan review services in noncode areas of the state.

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

61.27 	Sec. 56. Minnesota Statutes 2010, section 327.33, subdivision 2, is amended to read:
61.28 		Subd. 2.Fees. The commissioner shall by rule establish reasonable fees for seals, 
61.29 	installation seals and inspections which are sufficient to cover all costs incurred in the 
61.30 	administration of sections 327.31 to 327.35. The commissioner shall also establish by 
61.31 	rule a monitoring inspection fee in an amount that will comply with the secretary's fee 
61.32 	distribution program. This monitoring inspection fee shall be an amount paid by the 
61.33 	manufacturer for each manufactured home produced in Minnesota. The monitoring 
61.34 	inspection fee shall be paid by the manufacturer to the secretary. The rules of the 
62.1 	fee distribution program require the secretary to distribute the fees collected from all 
62.2 	manufactured home manufacturers among states approved and conditionally approved 
62.3 	based on the number of new manufactured homes whose first location after leaving the 
62.4 	manufacturer is on the premises of a distributor, dealer or purchaser in that state. Fees 
62.5 	for inspections in areas that have not adopted the State Building Code must be equal to 
62.6 	the fees for inspections in code areas of the state. Third party vendors may charge their 
62.7 	usual and normal charge for inspections.

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

62.9 	Sec. 57. Minnesota Statutes 2010, section 327C.095, subdivision 12, is amended to 
62.10 	read:
62.11 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund.
 62.12 	(a) If a manufactured home owner is required to move due to the conversion of all or a 
62.13 	portion of a manufactured home park to another use, the closure of a park, or cessation of 
62.14 	use of the land as a manufactured home park, the manufactured park owner shall, upon 
62.15 	the change in use, pay to the commissioner of management and budget for deposit in the 
62.16 	Minnesota manufactured home relocation trust fund under section 462A.35, the lesser 
62.17 	amount of the actual costs of moving or purchasing the manufactured home approved 
62.18 	by the neutral third party and paid by the Minnesota Housing Finance Agency under 
62.19 	subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured 
62.20 	home, and $6,000 for each multisection manufactured home, for which a manufactured 
62.21 	home owner has made application for payment of relocation costs under subdivision 13, 
62.22 	paragraph (c). The manufactured home park owner shall make payments required under 
62.23 	this section to the Minnesota manufactured home relocation trust fund within 60 days of 
62.24 	receipt of invoice from the neutral third party.
62.25 	(b) A manufactured home park owner is not required to make the payment prescribed 
62.26 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
62.27 	subdivision 13, paragraph (a) or (e), if:
62.28 	(1) the manufactured home park owner relocates the manufactured home owner to 
62.29 	another space in the manufactured home park or to another manufactured home park at 
62.30 	the park owner's expense;
62.31 	(2) the manufactured home owner is vacating the premises and has informed the 
62.32 	manufactured home park owner or manager of this prior to the mailing date of the closure 
62.33 	statement under subdivision 1;
62.34 	(3) a manufactured home owner has abandoned the manufactured home, or the 
62.35 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
63.1 	(4) the manufactured home owner has a pending eviction action for nonpayment of 
63.2 	lot rental amount under section 327C.09, which was filed against the manufactured home 
63.3 	owner prior to the mailing date of the closure statement under subdivision 1, and the writ 
63.4 	of recovery has been ordered by the district court;
63.5 	(5) the conversion of all or a portion of a manufactured home park to another use, 
63.6 	the closure of a park, or cessation of use of the land as a manufactured home park is the 
63.7 	result of a taking or exercise of the power of eminent domain by a governmental entity 
63.8 	or public utility; or
63.9 	(6) the owner of the manufactured home is not a resident of the manufactured home 
63.10 	park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home 
63.11 	is a resident, but came to reside in the manufactured home park after the mailing date of 
63.12 	the closure statement under subdivision 1.
63.13 	(c) If the unencumbered fund balance in the manufactured home relocation trust fund 
63.14 	is less than $1,000,000 as of June 30 of each year, the commissioner of management and 
63.15 	budget shall annually assess each manufactured home park owner by mail the total amount 
63.16 	of $12 for each licensed lot in their park, payable on or before September 15 of each that
63.17 	year. The commissioner of management and budget shall deposit the any payments in the 
63.18 	Minnesota manufactured home relocation trust fund. On or before July 15 of each year, 
63.19 	the commissioner of management and budget shall prepare and distribute to park owners a 
63.20 	letter explaining whether funds are being collected for that year, information about the 
63.21 	collection, an invoice for all licensed lots, and a sample form for the park owners to 
63.22 	collect information on which park residents have been accounted for. If assessed under 
63.23 	this paragraph, the park owner may recoup the cost of the $12 assessment as a lump 
63.24 	sum or as a monthly fee of no more than $1 collected from park residents together with 
63.25 	monthly lot rent as provided in section 327C.03, subdivision 6. Park owners may adjust 
63.26 	payment for lots in their park that are vacant or otherwise not eligible for contribution to 
63.27 	the trust fund under section 327C.095, subdivision 12, paragraph (b), and deduct from the 
63.28 	assessment accordingly.
63.29 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
63.30 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
63.31 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
63.32 	attorney fees, court costs, and disbursements.

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

63.34 	Sec. 58. REVISOR'S INSTRUCTION.
 64.1 	The revisor of statutes shall renumber each section of Minnesota Statutes listed in 
64.2 	column A with the number listed in column B. The revisor shall also make necessary 
64.3 	cross-reference changes consistent with the renumbering.

64.4		Column A
	Column B
	
64.5		326B.82, subd. 2
	326B.091, subd. 2a
	
64.6		326B.82, subd. 3
	326B.091, subd. 2b
	
64.7		326b.82, subd. 5
	326B.091, subd. 2c
	
64.8		326B.82, subd. 7
	326B.091, subd. 4a
	
64.9		326B.82, subd. 8
	326B.091, subd. 5a
	
64.10		326B.82, subd. 9
	326B.091, subd. 5c
	
64.11		326B.82, subd. 10
	326B.091, subd. 7
	
64.12		326B.821, subd. 4
	326B.0981, subd. 17
	
64.13		326B.821, subd. 5
	326B.0981, subd. 3
	
64.14		326B.821, subd. 5a
	326B.0981, subd. 4
	
64.15		326B.821, subd. 6
	326B.0981, subd. 5
	
64.16		326B.821, subd. 7
	326B.0981, subd. 6
	
64.17		326B.821, subd. 8
	326B.099, subd. 1
	
64.18		326B.821, subd. 9
	326B.099, subd. 2
	
64.19		326B.821, subd. 10
	326B.099, subd. 3
	
64.20		326B.821, subd. 11
	326B.099, subd. 4
	
64.21		326B.821, subd. 12
	326B.0981, subd. 7
	
64.22		326B.821, subd. 13
	326B.0981, subd. 8
	
64.23		326B.821, subd. 14
	326B.0981, subd. 9
	
64.24		326B.821, subd. 15
	326B.0981, subd. 10
	
64.25		326B.821, subd. 16
	326B.0981, subd. 11
	
64.26		326B.821, subd. 17
	326B.099, subd. 5
	
64.27		326B.821, subd. 18
	326B.0981, subd. 12
	
64.28		326B.821, subd. 19
	326B.0981, subd. 13
	
64.29		326B.821, subd. 20
	326B.0981, subd. 14
	
64.30		326B.821, subd. 22
	326B.0981, subd. 2
	
64.31		326B.821, subd. 23
	326B.0981, subd. 15
	
64.32		326B.821, subd. 24
	326B.0981, subd. 16

64.33 	Sec. 59.  REPEALER.
 64.34 	Minnesota Statutes 2010, sections 326B.82, subdivisions 4 and 6; and 326B.821, 
64.35 	subdivision 3, are repealed.

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

65.1 	ARTICLE 4
65.2 	EFFECTIVE DATE

65.3 	Section 1. EFFECTIVE DATE; RELATIONSHIP TO OTHER 
65.4 	APPROPRIATIONS.
 65.5 	Unless otherwise specified, this act is effective retroactively from July 1, 2011, 
65.6 	and supersedes and replaces funding authorized by order of the Second Judicial District 
65.7 	Court in Case No. 62-CV-11-5203.