Minnesota Legislature
HF 3386
as introduced - 86th Legislature (2009 - 2010) Posted on 03/04/2010 09:48am
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A bill for an act
relating to real property; requiring performance guidelines for certain residential
contracts; modifying statutory warranties; requiring notice and opportunity to
repair; providing for dispute resolution procedures; amending Minnesota Statutes
2008, sections 326B.809; 327A.01, subdivision 7, by adding a subdivision;
327A.02, subdivision 4, by adding subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 326B.809, is amended to read:
326B.809 WRITTEN CONTRACT REQUIRED.
(a) All agreements including proposals, estimates, bids, quotations, contracts,
purchase orders, and change orders between a licensee and a customer for the performance
of a licensee's services must be in writing and must contain the following:
(1) a detailed summary of the services to be performed;
(2) a description of the specific materials to be used or a list of standard features
to be included; and
(3) the total contract price or a description of the basis on which the price will
be calculated.
(b) new text begin Before entering into an agreement, the licensee shall provide a prospective
customer with written performance guidelines for the services to be performed.
Performance guidelines also must be included or incorporated by reference in the
agreement. new text end All agreements shall be signed and dated by the licensee and customer.
(c) The licensee shall provide to the customer, at no charge, a signed and dated
document at the time that the licensee and customer sign and date the document.
Documents include agreementsnew text begin , performance guidelines, new text end and mechanic's lien waivers.
Sec. 2.
Minnesota Statutes 2008, section 327A.01, subdivision 7, is amended to read:
Subd. 7.
Vendor.
"Vendor" means any person, firmnew text begin ,new text end or corporation deleted text begin whichdeleted text end new text begin that
new text end constructs dwellings deleted text begin for the purpose of saledeleted text end , including the construction of dwellings on
land owned by vendees.
Sec. 3.
Minnesota Statutes 2008, section 327A.01, is amended by adding a subdivision
to read:
new text begin Subd. 12. new text end
new text begin Inspection. new text end
new text begin
"Inspection" means a visual or invasive examination of the
alleged property damage.
new text end
Sec. 4.
Minnesota Statutes 2008, section 327A.02, subdivision 4, is amended to read:
Subd. 4.
Response from vendor new text begin or home improvement contractor new text end to notice of
claimnew text begin ; right to inspectnew text end .
(a) deleted text begin Following notice under section 327A.03,deleted text end The vendee new text begin or
owner new text end must allow an inspection deleted text begin and opportunity todeleted text end new text begin for purposes of the preparation of an
new text end offer to repair the deleted text begin knowndeleted text end new text begin alleged new text end loss or damagenew text begin under subdivision 5new text end . deleted text begin Upon request of the
vendee, a court may order the vendor to conduct the inspection.deleted text end The inspection must be
performed deleted text begin and any offer to repair must be made in writing to the vendeedeleted text end new text begin by the vendor
or home improvement contractor or their designee new text end within 30 days of deleted text begin the vendor's receipt
of the written notice required under section 327A.03, clause (a), alleging loss or damagedeleted text end new text begin
the notification under section 327A.03, clause (a). Any damage to property caused as a
result of an inspection must be promptly patched or repaired by the inspecting party
to prevent further damage to the propertynew text end .
new text begin (b) new text end The applicable statute of limitations new text begin for an action based on breach of a warranty
imposed by section 327A.02, or any other action in contract, tort, or other law for any
injury to real or personal property or bodily injury or wrongful death arising out of the
alleged loss or damage, new text end is tolled from the date the written notice provided by the vendee
new text begin or owner new text end is postmarked, or if not sent through the mail, received by the vendor new text begin or home
improvement contractor new text end until the earliest of the following:
(1) the date deleted text begin the vendee rejects the vendor's offer to repairdeleted text end new text begin of completion of the
prelitigation processnew text end ;new text begin or
new text end
(2) deleted text begin the date the vendor rejects the vendee's claim in writing;
deleted text end
deleted text begin
(3) failure by the vendor to make an offer to repair within the 30-day period
described in this subdivision; or
deleted text end
deleted text begin (4)deleted text end 180 days.
deleted text begin
For purposes of this subdivision, "vendor" includes a home improvement contractor.
deleted text end
deleted text begin (b)deleted text end new text begin (c) new text end Upon completion of repairs as described in an offer to repair, the vendor must
provide the vendee with a list of the repairs made and a notice that the vendee may have
a right to pursue a warranty claim under this chapter. Provision of this statement is not
an admission of liability. Compliance with this subdivision does not affect any rights
of the vendee under this chapter.
Sec. 5.
Minnesota Statutes 2008, section 327A.02, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin Right to repair; agreement. new text end
new text begin
(a) Within 15 days of completion of the
inspection required by subdivision 4, the vendor or home improvement contractor must
provide to the vendee or owner a written offer to repair. The offer to repair must include,
at a minimum:
new text end
new text begin
(1) the scope of the proposed repair work; and
new text end
new text begin
(2) the proposed date on which the repair work would begin and the estimated
date of completion.
new text end
new text begin
(b) This subdivision does not prevent the vendee or owner from obtaining the
information in paragraph (a) from another contractor or from negotiating with the vendor
or home improvement contractor for a different scope of work.
new text end
new text begin
(c) If the parties agree to a scope of work, the vendor or home improvement
contractor must perform the repair work in accordance with the offer to repair. If the
parties do not agree to a scope of work, the vendee or owner must submit the matter to the
homeowner warranty dispute resolution process under section 327A.051.
new text end
new text begin
(d) Upon completion of repairs described in an offer to repair, the vendor or home
improvement contractor must provide the vendee or owner with a written notice that the
scope of the work agreed upon has been completed.
new text end
Sec. 6.
Minnesota Statutes 2008, section 327A.02, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Failure to perform inspection or repair. new text end
new text begin
If the vendor or home
improvement contractor fails to perform an inspection under subdivision 4 or make an
offer to repair and perform agreed upon repairs under subdivision 5, the vendee or owner
may commence an action for breach of the warranty.
new text end
Sec. 7.
Minnesota Statutes 2008, section 327A.02, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Processes required before commencement of action. new text end
new text begin
Except as provided
in subdivision 6, a cause of action for which the statute of limitations is tolled under
subdivision 4, paragraph (b), must not be commenced until expiration of the tolling period.
new text end
Sec. 8.
Minnesota Statutes 2008, section 327A.02, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Effect of certain actions. new text end
new text begin
(a) This section does not make an insurer that
pays for repair work under this section a vendor or home improvement contractor.
new text end
new text begin
(b) This section does not make a subcontractor or material supplier retained by the
vendor or vendor's insurer a home improvement contractor.
new text end
new text begin
(c) A vendor does not become a home improvement contractor by complying with
its obligations under this section.
new text end
Sec. 9. new text begin HOMEOWNER WARRANTY DISPUTE RESOLUTION.
new text end
new text begin
A homeowner warranty dispute resolution process for resolving disputes based on
an alleged breach of a warranty imposed by Minnesota Statutes, section 327A.02, or
any other action in contract, tort, or other law for any injury to real or personal property
or bodily injury or wrongful death arising out of the alleged loss or damage, should be
established based on the final report of the housing warranty task force.
new text end
Sec. 10. new text begin EFFECTIVE DATE; APPLICATION.
new text end
new text begin
Sections 1 to 8 are effective August 1, 2010, and apply to notices of claims given
and actions commenced on or after that date.
new text end
new text begin
Sections 1 to 8 do not revive claims already barred or extend any applicable statute
of limitations or repose.
new text end