SF 1013

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; requiring continuing education
for municipal building officials; requiring more
detail in reports from municipalities on building code
enforcement; requiring prelicensing education of
residential building contractors; making changes in
continuing education; providing homebuyers with access
to information about avoidance of moisture and other
problems; regulating actions for a breach of the
statutory home warranty requirements; amending
Minnesota Statutes 2004, sections 16B.65, by adding a
subdivision; 16B.685; 326.87, subdivision 1; 326.89,
subdivision 2; 326.96; 327A.05, by adding a
subdivision; proposing coding for new law in Minnesota
Statutes, chapter 326.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITATION.
new text end

new text begin This act may be cited as the Homeowners' Protection Act.
new text end

Sec. 2.

Minnesota Statutes 2004, section 16B.65, is
amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin All building inspectors and officials;
continuing education. new text end

new text begin In addition to continuing education
requirements established by the commissioner under subdivision
7, all municipal building inspectors and officials, whether
certified by the commissioner or not, must attend at least 40
hours per year of continuing education on current practices,
technologies, and code changes. The requirement may be met by
attending national code development hearings or attending
classes to get national certifications of competency offered by
trade organizations. A municipality may pay for municipal
inspector or building official attendance at required continuing
education classes with fee revenue from permit and inspection
fees paid to the municipality.
new text end

Sec. 3.

Minnesota Statutes 2004, section 16B.685, is
amended to read:

16B.685 ANNUAL REPORT new text begin ; RESPONSE TO SURPLUS FEES new text end .

new text begin (a) new text end Beginning with the first report filed by June 30, 2003,
each municipality shall annually report by June 30 to the
department, in a format prescribed by the department, all
construction and development-related fees collected by the
municipality from developers, builders, and subcontractors if
the cumulative fees collected exceeded $5,000 in the reporting
year. The report must include:

(1) the number and valuation of units for which fees were
paid;

(2) the amount of building permit fees, plan review fees,
administrative fees, engineering fees, infrastructure fees, and
other construction and development-related fees; deleted text begin and
deleted text end

(3) the expenses associated with the municipal activities
for which fees were collected new text begin ; and
new text end

new text begin (4) the total number of permits issued, total number of
inspections performed, and the total number of hours of staff
time and total expenditures associated with administration of
permitting and inspection services new text end .

new text begin (b) By June 30, 2006, for calendar year 2005, and then by
June 30 of each even-numbered year for the previous two calendar
years, a municipality required to report under paragraph (a)
must include in its report information as required in this
paragraph. The municipality must report if the fees collected
by the municipality exceed its expenses related to the municipal
activities for which those fees were collected. If the fees
collected exceed expenses, the municipality must include in the
report:
new text end

new text begin (1) a description of the municipality's plan to reduce
future fee revenue, so as to eliminate any future surplus;
new text end

new text begin (2) a description of the municipality's plan to increase
the quantity or quality of its activities for which the fees are
collected, so as to eliminate future surplus; or
new text end

new text begin (3) an explanation of why the municipality reasonably does
not expect the surplus experienced in that calendar year to be
repeated in future years.
new text end

Sec. 4.

Minnesota Statutes 2004, section 326.87,
subdivision 1, is amended to read:

Subdivision 1.

Standards.

deleted text begin The commissioner, in
consultation with the council, may adopt standards for
continuing education requirements and course approval. The
standards must include requirements for continuing education in
the implementation of energy codes applicable to buildings and
other building codes designed to conserve energy. Except for
the course content, the standards must be consistent with the
standards established for real estate agents and other
professions licensed by the Department of Commerce. At a
minimum, the content of one hour of any required continuing
education must contain information on lead abatement rules and
safe lead abatement procedures. deleted text end new text begin (a) The commissioner must adopt
standards for continuing education requirements and approval.
The standards must consist of instruction in only the following
subject areas:
new text end

new text begin (1) safety and security, including but not limited to lead
abatement and lead-safe cleanup rules and procedures;
new text end

new text begin (2) liability and contracts;
new text end

new text begin (3) building code;
new text end

new text begin (4) customer service; and
new text end

new text begin (5) general project management.
new text end

new text begin (b) The commissioner must develop additional standards to
address changes in building codes and in laws relating to
residential construction and remodeling. The commissioner must
consult with a private organization to assess the need for
additional course requirements. The commissioner shall
publicize any additional standards not later than August 1 of
each calendar year.
new text end

Sec. 5.

new text begin [326.871] PRELICENSURE EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

new text begin A qualifying person must
complete 30 hours of prelicensure education under this section
prior to applying to take the written examination under section
326.89.
new text end

new text begin Subd. 2. new text end

new text begin Curriculum. new text end

new text begin (a) The commissioner must contract
with a private organization to develop the residential building
contractor and remodeler prelicensure curriculum.
new text end

new text begin (b) The curriculum must consist of only the following
subject areas:
new text end

new text begin (1) building codes;
new text end

new text begin (2) fundamental construction techniques;
new text end

new text begin (3) state and federal statutes;
new text end

new text begin (4) state rules and federal regulations; and
new text end

new text begin (5) business practices.
new text end

new text begin (c) The curriculum is subject to the approval of the
commissioner.
new text end

new text begin (d) Entities that offer this curriculum must provide a
certificate of completion to enrollees who successfully complete
this curriculum.
new text end

Sec. 6.

Minnesota Statutes 2004, section 326.89,
subdivision 2, is amended to read:

Subd. 2.

Contents.

The application must include the
following information regarding the applicant:

(1) Minnesota workers' compensation insurance certificate;

(2) employment insurance account number;

(3) certificate of liability insurance;

(4) type of license requested;

(5) name and address of the applicant:

(i) name and address of the applicant's qualifying person,
if other than applicant; and

(ii) if the applicant is a sole proprietorship, the name
and address of the sole proprietor; if the applicant is a
partnership, the name and address of each partner; if the
applicant is a limited liability company, the name and address
of each governor and manager; if the applicant is a corporation,
the name and address of each of the corporate officers,
directors, and all shareholders holding more than ten percent of
the outstanding stock in the corporation;

(6) whether the applicant, any employee, or qualifying
person has ever been licensed in this or any other state and has
had a professional or vocational license refused, suspended, or
revoked, or has been the subject of any administrative action;

(7) whether the applicant, qualifying person, or any of the
applicant's corporate or partnership directors, limited
liability company governors, officers, limited or general
partners, managers, all shareholders holding more than ten
percent of the share of the corporation that have been issued,
or all members holding more than ten percent of the voting power
of the membership interests that have been issued, has been
convicted of a crime that either related directly to the
business for which the license is sought or involved fraud,
misrepresentation, or misuse of funds; has suffered a judgment
in a civil action involving fraud, misrepresentation,
negligence, or breach of contract, or conversion within the ten
years prior to the submission of the application; or has had any
government license or permit suspended or revoked as a result of
an action brought by a federal, state, or local governmental
unit or agency in this or any other state;

(8) the applicant's and qualifying person's business
history for the past five years and whether the applicant, any
employee, or qualifying person has ever filed for bankruptcy or
protection from creditors or has any unsatisfied judgments
against the applicant, employee, or qualifying person;

(9) where the applicant is a firm, partnership, sole
proprietorship, limited liability company, corporation, or
association, whether there has been a sale or transfer of the
business or other change in ownership, control, or name in the
last five years and the details thereof, and the names and
addresses of all prior, predecessor, subsidiary, affiliated,
parent, or related entities, and whether each such entity, or
its owners, officers, directors, members or shareholders holding
more than ten percent of the stock, or an employee has ever
taken or been subject to an action that is subject to clause
(6), (7), or (8) in the last ten years; deleted text begin and
deleted text end

(10) whether the qualifying person is the qualifying person
for more than one licensee new text begin ; and
new text end

new text begin (11) whether the qualifying person has completed the
prelicensure curriculum required under section 326.871, and, if
so, a copy of the certificate of completion of that curriculum new text end .

For purposes of this subdivision, "applicant" includes
employees who exercise management or policy control over the
residential contracting and remodeling activities in the state
of Minnesota, including affiliates, partners, directors,
governors, officers, limited or general partners, managers, all
shareholders holding more than ten percent of the shares that
have been issued, a shareholder holding more than ten percent of
the voting power of the shares that have been issued, or all
members holding more than ten percent of the membership
interests that have been issued or more than ten percent of the
voting power of the membership interests that have been issued.

The commissioner may require further information as the
commissioner deems appropriate to administer the provisions and
further the purposes of this chapter.

Sec. 7.

Minnesota Statutes 2004, section 326.96, is
amended to read:

326.96 PUBLIC EDUCATION.

new text begin Subdivision 1. new text end

new text begin Licensing. new text end

The commissioner may develop
materials and programs to educate the public concerning
licensing requirements and methods for reporting unlicensed
contracting activity.

new text begin Subd. 2. new text end [HOMEOWNER'S GUIDE.] new text begin (a) The commissioner must
develop a guide for owners and prospective owners of newly
constructed homes and make it available in electronic form to
real estate brokers and salespersons, residential building
contractors and remodelers, and the general public. The guide
must include information on:
new text end

new text begin (1) moisture problems in residential buildings;
new text end

new text begin (2) the homeowner's warranty required under chapter 327A;
new text end

new text begin (3) disclosures regarding the property that are required to
be made to prospective purchasers by sellers and real estate
brokers and salespersons;
new text end

new text begin (4) prepurchase inspection of residential property by home
inspectors, local government employees, and other persons or
entities; and
new text end

new text begin (5) other sources of information for homeowners and
prospective homeowners, including the commissioner's Web site.
new text end

new text begin (b) The guide must include pages at the front for
homeowners to record information about their home and its
maintenance history, maintenance instructions received from the
builder or relating to appliances and ventilation equipment, and
homeowners and appliance warranties and owners guides.
new text end

new text begin (c) The commissioner must, in the homeowner's guide and
other reasonably appropriate ways, encourage homeowners and
prospective homeowners to transfer possession of the homeowner's
guide, including information added to it by previous homeowners,
at the time of transfer of ownership. The commissioner must
encourage real estate brokers and salespersons to facilitate
those transfers.
new text end

new text begin Subd. 3. new text end

new text begin Web page on home inspection. new text end

new text begin (a) The
commissioner must create and maintain a Web page providing
information and advice on:
new text end

new text begin (1) the benefits to a prospective home buyer of having the
home inspected by a qualified home inspector prior to making a
final commitment to buy the home; and
new text end

new text begin (2) how to select and make best use of a home inspector.
new text end

new text begin (b) The Web page must state that there is no state
certification or licensing program for home inspectors and that
any person can engage in that business, regardless of whether
the person has experience or knowledge that qualifies the person
to do home inspecting.
new text end

new text begin (c) The Web page may provide links to recognized
associations of home inspectors and other sources of information
on home inspections, but must not provide links to particular
home inspectors.
new text end

Sec. 8.

Minnesota Statutes 2004, section 327A.05, is
amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Communication required regarding claim. new text end

new text begin (a)
Prior to commencing an action under this chapter, the vendee
must contact the vendor in writing by certified mail, return
receipt requested, specifying in reasonable detail the basis of
the cause of action.
new text end

new text begin (b) Following receipt of the notice described in paragraph
(a), the vendor must within 10 days make a written request to
the vendee to inspect the dwelling. The vendee must ensure that
the dwelling is made available for inspection no later than 30
days after the vendee receives the written request from the
vendor for an inspection. The vendor and the insurer who
insured the vendor on the date the public authority issued the
dwelling's certificate of occupancy must inspect the dwelling on
the agreed upon date. To the extent there is coverage under the
vendor's insurance policy for damage caused by a defect, the
insurer must adjust the claim pursuant to paragraph (c).
new text end

new text begin (c) Within 60 days after the inspection, the vendor must
send a good faith written response to the vendee by certified
mail, return receipt requested. The response must contain the
results of the vendor's inspection, and where applicable, an
estimate of repair or replacement costs and an offer by the
vendor to pay all or part of that amount or to perform the
repairs or replacement at no cost to the vendee or at a cost
specified in the response.
new text end

new text begin (d) The vendee may accept, reject, or counter-offer in
writing by certified mail, return receipt requested, within 30
days of receipt of the good faith response by the vendor. The
vendee may commence an action under this chapter following the
response from the vendor if the vendee does not accept the
offer, if any, from the vendor.
new text end

new text begin (e) If the vendor does not comply with paragraphs (b) and
(c), the vendee may commence an action and may notify the
commissioner of the vendor's noncompliance.
new text end

new text begin (f) The statute of limitations for an action under this
chapter is tolled during the time the vendee is complying with
this subdivision.
new text end

new text begin (g) The commissioner of commerce must suspend the license,
issued under chapter 326, of a residential building contractor
or remodeler that refuses to comply with paragraph (b) or (c)
after being directed to do so by the commissioner.
new text end