SF 2248

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; requiring more detail in reports 
  1.3             from municipalities on building code enforcement; 
  1.4             providing a property tax deduction for structures 
  1.5             contaminated by mold; regulating contractor estimates; 
  1.6             establishing a statutory cure process for home 
  1.7             warranty claims; requiring prelicensing education of 
  1.8             residential building contractors; making changes in 
  1.9             continuing education; providing homebuyers with access 
  1.10            to information about avoidance of moisture and other 
  1.11            problems; permitting successful home warranty 
  1.12            claimants to recover attorney fees and expenses; 
  1.13            amending Minnesota Statutes 2002, sections 16B.65, 
  1.14            subdivision 7; 273.123, by adding a subdivision; 
  1.15            326.87, subdivision 1; 326.89, subdivision 2; 326.96; 
  1.16            327A.05; Minnesota Statutes 2003 Supplement, section 
  1.17            16B.685; proposing coding for new in Minnesota 
  1.18            Statutes, chapters 325E; 326. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  [CITATION.] 
  1.21     This act may be cited as the Homeowners' Protection Act. 
  1.22     Sec. 2.  Minnesota Statutes 2002, section 16B.65, 
  1.23  subdivision 7, is amended to read: 
  1.24     Subd. 7.  [CONTINUING EDUCATION.] (a) Subject to sections 
  1.25  16B.59 to 16B.75, the commissioner may by rule establish or 
  1.26  approve continuing education programs for municipal building 
  1.27  officials dealing with matters of building code administration, 
  1.28  inspection, and enforcement.  
  1.29     Each person certified as a building official for the state 
  1.30  must satisfactorily complete applicable educational programs 
  1.31  established or approved by the commissioner every three calendar 
  1.32  years to retain certification. 
  2.1      Each person certified as a building official must submit in 
  2.2   writing to the commissioner an application for renewal of 
  2.3   certification within 60 days of the last day of the third 
  2.4   calendar year following the last certificate issued.  Each 
  2.5   application for renewal must be accompanied by proof of 
  2.6   satisfactory completion of minimum continuing education 
  2.7   requirements and the certification renewal fee established by 
  2.8   the commissioner.  
  2.9      (b) The commissioner may by rule establish or approve 
  2.10  continuing education programs for municipal building inspectors. 
  2.11     (c) A municipality must pay for municipal building 
  2.12  inspector or building official attendance at required continuing 
  2.13  education classes with fee revenue from permit and inspection 
  2.14  fees paid to the municipality.  
  2.15     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  2.16  16B.685, is amended to read: 
  2.17     16B.685 [ANNUAL REPORT.] 
  2.18     Beginning with the first report filed by June 30, 2003, 
  2.19  each municipality shall annually report by June 30 to the 
  2.20  department, in a format prescribed by the department, all 
  2.21  construction and development-related fees collected by the 
  2.22  municipality from developers, builders, and subcontractors if 
  2.23  the cumulative fees collected exceeded $5,000 in the reporting 
  2.24  year.  The report must include: 
  2.25     (1) the number and valuation of units for which fees were 
  2.26  paid; 
  2.27     (2) the amount of building permit fees, plan review fees, 
  2.28  administrative fees, engineering fees, infrastructure fees, and 
  2.29  other construction and development-related fees; and 
  2.30     (3) the expenses associated with the municipal activities 
  2.31  for which fees were collected; and 
  2.32     (4) the total number of permits issued, total number of 
  2.33  inspections performed, and the total number of hours of staff 
  2.34  time and total expenditures associated with administration of 
  2.35  permitting and inspection services. 
  2.36     Sec. 4.  Minnesota Statutes 2002, section 273.123, is 
  3.1   amended by adding a subdivision to read: 
  3.2      Subd. 8.  [HOMESTEAD PROPERTY DAMAGED BY MOLD.] (a) The 
  3.3   owner of homestead property not qualifying for an adjustment in 
  3.4   valuation under subdivisions 1 to 5 must receive a reduction in 
  3.5   the amount of taxes payable on the property if all of the 
  3.6   following conditions are met: 
  3.7      (1) the owner of the property makes written application to 
  3.8   the county assessor for tax treatment under this subdivision; 
  3.9      (2) the county assessor determines that the homestead 
  3.10  dwelling is uninhabitable because all or part of it has been 
  3.11  contaminated by mold; and 
  3.12     (3) the owner of the property makes written application to 
  3.13  the county board. 
  3.14     (b) If all of the conditions in paragraph (a) are met, the 
  3.15  county board must grant a reduction in the amount of property 
  3.16  tax payable on the homestead dwelling.  The reduction must be 
  3.17  made for taxes payable in the year that the assessor determines 
  3.18  that the requirements in paragraph (a), clause (2), have been 
  3.19  met and in the following year. 
  3.20     (c) The reduction in the amount of tax payable must be 
  3.21  calculated based upon the number of months that the homestead is 
  3.22  uninhabitable.  The amount of net tax due from the taxpayer 
  3.23  shall be multiplied by a fraction, the numerator of which is the 
  3.24  number of months the dwelling was occupied by that taxpayer, and 
  3.25  the denominator of which is 12.  For purposes of this 
  3.26  subdivision, if a homestead dwelling is occupied or used for a 
  3.27  fraction of a month, it is considered a month.  "Net tax" is 
  3.28  defined as the amount of tax after the subtraction of all of the 
  3.29  state paid property tax credits.  If the reduction is granted 
  3.30  after all property taxes due for the year have been paid, the 
  3.31  amount of the reduction must be refunded to the taxpayer by the 
  3.32  county treasurer as soon as practical.  
  3.33     (d) Any reductions or refunds under this section are not 
  3.34  subject to approval by the commissioner of revenue. 
  3.35     (e) A denial of a reduction or refund under this section by 
  3.36  the county board may be appealed to the tax court.  If the 
  4.1   county board takes no action on the application within 60 days 
  4.2   after its receipt, it is considered a denial. 
  4.3      (f) The county board may levy in the following year the 
  4.4   amount of tax dollars lost to the county government as a result 
  4.5   of the reductions granted pursuant to this subdivision.  A levy 
  4.6   under this paragraph is a special levy for purposes of a state 
  4.7   determined levy limit. 
  4.8      [EFFECTIVE DATE.] This section is effective for property 
  4.9   taxes payable in 2004 and thereafter. 
  4.10     Sec. 5.  [325E.60] [DEFINITIONS.] 
  4.11     Subdivision 1.  [SCOPE.] For the purposes of sections 
  4.12  325E.60 to 325E.64, the terms in subdivisions 2 to 6 have the 
  4.13  meanings given them. 
  4.14     Subd. 2.  [CONTRACTOR.] "Contractor" means a person in the 
  4.15  business of building residential real estate or contracting or 
  4.16  offering to contract with an owner to build residential real 
  4.17  estate or contracting or offering to contract with an owner to 
  4.18  improve or restore residential real estate. 
  4.19     Subd. 3.  [OWNER.] "Owner" means a person who has any legal 
  4.20  or equitable interest in residential real estate.  Owner does 
  4.21  not include a contractor who constructs or improves its own 
  4.22  property for purposes of speculation.  A contractor will be 
  4.23  presumed to be building or improving for purposes of speculation 
  4.24  if it constructs or improves more than one property within any 
  4.25  24-month period. 
  4.26     Subd. 4.  [REPAIRS.] "Repairs" means work performed for a 
  4.27  total price of more than $1,000, including the price of parts 
  4.28  and materials, to remodel, repair, or restore residential real 
  4.29  estate.  Repairs do not include service calls or estimates. 
  4.30     Subd. 5.  [RESIDENTIAL REAL ESTATE.] "Residential real 
  4.31  estate" has the meaning given the term in section 326.83, 
  4.32  subdivision 17. 
  4.33     Subd. 6.  [WRITTEN ESTIMATE.] "Written estimate" means a 
  4.34  writing which includes: 
  4.35     (1) the name and address of the person performing the 
  4.36  remodeling, repair, or restoration; 
  5.1      (2) a description of the work to be performed including, if 
  5.2   applicable, a description of the work to be performed as 
  5.3   described by the owner and any specific work requested by the 
  5.4   owner; 
  5.5      (3) the terms and duration of any warranties given by the 
  5.6   contractor on the work to be performed; 
  5.7      (4) the charges for parts or materials listed with 
  5.8   reasonable particularity and indicating whether the parts are 
  5.9   new or used, if this information is known; 
  5.10     (5) labor charges; 
  5.11     (6) tax; 
  5.12     (7) any delivery charge; 
  5.13     (8) any other charges; and 
  5.14     (9) the total estimated price. 
  5.15     Sec. 6.  [325E.605] [ESTIMATES.] 
  5.16     Subdivision 1.  [REQUIRED.] Upon the request of an owner 
  5.17  for a written estimate and before beginning the remodeling, 
  5.18  repair, or restoration, a contractor shall provide the owner 
  5.19  with a written estimate.  The contractor shall include in the 
  5.20  estimate all the parts and materials and labor which in the 
  5.21  standard practice of the trade or industry would normally be 
  5.22  included in the work for which the estimate was requested. 
  5.23     Subd. 2.  [NOTICE.] At the time a contractor provides the 
  5.24  owner with a written estimate, the contractor shall inform the 
  5.25  owner that any charge for a service call or a charge for making 
  5.26  an estimate is in addition to the estimated price for the 
  5.27  remodeling, repair, or restoration. 
  5.28     Subd. 3.  [CONTRACTOR DUTIES.] At the option of the owner 
  5.29  and upon the owner's written authorization, a contractor which 
  5.30  provides a written estimate shall: 
  5.31     (1) if the owner elects and the contractor undertakes the 
  5.32  remodeling, repair, or restoration, perform the remodeling, 
  5.33  repair, or restoration described in the estimate; or 
  5.34     (2) return the unremodeled, unrepaired, or unrestored 
  5.35  residential real estate as close as possible to its former 
  5.36  condition, including repairing all damage caused in inspecting 
  6.1   the residential real estate and preparing the estimate, upon 
  6.2   payment of any charges for making the estimate or a service call.
  6.3      Subd. 4.  [EXCEPTION.] A contractor is not required to 
  6.4   provide a written estimate for remodeling, repair, restoration, 
  6.5   or service calls it does not agree to perform. 
  6.6      Subd. 5.  [CONTRACTOR BOUND BY ESTIMATE.] If a contractor 
  6.7   provides a written estimate of the price of remodeling, repair, 
  6.8   or restoration, it shall not charge more than 110 percent of the 
  6.9   total price stated in its estimate for the remodeling, repair, 
  6.10  or restoration; except if a contractor after beginning work 
  6.11  determines that additional work is necessary to accomplish the 
  6.12  remodeling, repair, or restoration that are the subject of a 
  6.13  written estimate and if the contractor did not unreasonably fail 
  6.14  to disclose the possible need for the additional work when the 
  6.15  estimate was made, the contractor may charge more than 110 
  6.16  percent of the estimate for the remodeling, repair, or 
  6.17  restoration if the contractor immediately provides the owner a 
  6.18  revised written estimate pursuant to this section without charge 
  6.19  and receives written authorization to continue with the 
  6.20  remodeling, repair, or restoration.  If continuation of the 
  6.21  remodeling, repair, or restoration is not authorized, the 
  6.22  contractor shall return the residential real estate as close as 
  6.23  possible to its former condition or place it in a mutually 
  6.24  agreed upon condition and shall release the owner from further 
  6.25  liability upon payment of charges for remodeling, repair, or 
  6.26  restoration actually performed and not in excess of 110 percent 
  6.27  of the original estimate.  Nothing in this subdivision 
  6.28  authorizes remodeling, repair, or restoration charges in excess 
  6.29  of reasonable charges for parts and materials and labor. 
  6.30     Subd. 6.  [ALTERNATIVE COMPLIANCE.] The requirement of a 
  6.31  written estimate in sections 325E.60 to 325E.64 is fulfilled if 
  6.32  a contractor orally communicates the contents of a required 
  6.33  writing to the owner before beginning remodeling, repair, or 
  6.34  restoration and provides the writing to the owner upon 
  6.35  completion of the remodeling, repair, or restoration.  If the 
  6.36  contents are orally communicated, the contractor shall make a 
  7.1   notation on the writing of the date, time, and telephone number 
  7.2   called, if any, and the name of the person who receives the 
  7.3   information and orally authorizes the making of the estimated 
  7.4   remodeling, repair, or restoration. 
  7.5      Subd. 7.  [ADDITIONAL WORK.] If a contractor, after 
  7.6   beginning remodeling, repair, or restoration, determines that 
  7.7   additional remodeling, repair, or restoration not previously 
  7.8   authorized is necessary, the contractor may perform the 
  7.9   additional remodeling, repair, or restoration if it complies 
  7.10  with this section.  The contractor shall provide, without 
  7.11  charge, a written estimate before any additional remodeling, 
  7.12  repair, or restoration is begun on the residential real estate 
  7.13  regardless of whether the owner requested a written estimate of 
  7.14  the price of the original remodeling, repair, or restoration. 
  7.15     Sec. 7.  [325E.61] [UNAUTHORIZED WORK.] 
  7.16     No contractor shall charge for unauthorized remodeling, 
  7.17  repair, or restoration.  No contractor shall perform remodeling, 
  7.18  repair, or restoration it knows or has reason to know are 
  7.19  unnecessary unless the owner authorizes the remodeling, repair, 
  7.20  or restoration after the contractor informs the owner that they 
  7.21  are unnecessary. 
  7.22     Sec. 8.  [325E.615] [INVOICE.] 
  7.23     Subdivision 1.  [DEFINITION; REQUIREMENTS.] For the purpose 
  7.24  of this section, "remodeling," "repair," or "restoration" does 
  7.25  not include service calls or estimates.  Upon completion of the 
  7.26  remodeling, repair, or restoration, a contractor shall provide 
  7.27  the owner with a copy of a dated invoice for the remodeling, 
  7.28  repair, or restoration performed.  The invoice must contain the 
  7.29  following information: 
  7.30     (1) the date of the remodeling, repair, or restoration; 
  7.31     (2) the name and address of the contractor; 
  7.32     (3) a description of all remodeling, repair, or restoration 
  7.33  performed; 
  7.34     (4) the terms and duration of any warranties given by the 
  7.35  contractor on the work performed; 
  7.36     (5) an itemization of the charges for parts, materials, 
  8.1   labor, tax, delivery, and any other charges assessed against the 
  8.2   owner; 
  8.3      (6) a notation specifying which parts, if any, are new or 
  8.4   used if that information is known by the contractor; 
  8.5      (7) a statement of any charge for a service call or for 
  8.6   making an estimate; and 
  8.7      (8) a statement of the problems or damage, if any, as 
  8.8   described by the owner, for which the remodeling, repair, or 
  8.9   restoration was sought. 
  8.10     Subd. 2.  [ESTIMATE AS INVOICE.] A written estimate may be 
  8.11  used as an invoice if the required invoice information is 
  8.12  written on the face of the estimate. 
  8.13     Sec. 9.  [325E.62] [REQUIRED CONTRACTOR PRACTICES.] 
  8.14     Subdivision 1.  [RECORDS RETENTION.] When any remodeling, 
  8.15  repairs, or restorations are performed, a contractor shall 
  8.16  retain for at least three years the name and address of the 
  8.17  owner, any written estimates, and the corresponding invoice.  
  8.18  The records must be available for reasonable inspection and 
  8.19  copying by law enforcement officials upon reasonable prior 
  8.20  notice and during regular business hours.  Upon payment to a 
  8.21  contractor of any reasonable costs of reproduction, the owner 
  8.22  shall have the right to a copy of documents retained by the 
  8.23  contractor reflecting any transaction to which the owner was a 
  8.24  party. 
  8.25     Subd. 2.  [ESTIMATE NOTICE.] Each contractor shall provide 
  8.26  the following written notice to the owner before any remodeling, 
  8.27  repair, or restoration work is started:  "Upon your request, I 
  8.28  am/we are required to provide a written estimate for remodeling, 
  8.29  repair, or restoration costing more than $1,000 if I/we agree to 
  8.30  perform the remodeling, repair, or restoration.  My/our final 
  8.31  price cannot exceed the written estimate by more than ten 
  8.32  percent without your prior written authorization." 
  8.33     Sec. 10.  [325E.625] [REMEDIES; PENALTIES.] 
  8.34     Subdivision 1.  [CONSUMER FRAUD.] Any violation of sections 
  8.35  325E.60 to 325E.64 shall be deemed a violation of section 
  8.36  325F.69, subdivision 1, and the provisions of section 8.31 apply.
  9.1      Subd. 2.  [ADDITIONAL REMEDIES.] The remedies of this 
  9.2   section are to be construed as cumulative in addition to those 
  9.3   provided by the common law and other statutes of this state. 
  9.4      Sec. 11.  [325E.63] [EXEMPTION FOR WARRANTY WORK.] 
  9.5      Sections 325E.60 and 325E.61 and sections 325E.62 to 
  9.6   325E.64 do not apply when the remodeling, repair, or restoration 
  9.7   is performed free of charge to the owner under warranty. 
  9.8      Sec. 12.  [325E.635] [PREEMPTION BY STATE.] 
  9.9      The provisions of sections 325E.60 to 325E.64 supersede 
  9.10  local ordinances regulating remodeling, repair, restoration, 
  9.11  service calls, and estimates except for more restrictive 
  9.12  regulation. 
  9.13     Sec. 13.  [325E.64] [TITLE.] 
  9.14     Sections 325E.60 to 325E.64 may be cited as the Homeowners 
  9.15  Protection Act of 2004. 
  9.16     Sec. 14.  Minnesota Statutes 2002, section 326.87, 
  9.17  subdivision 1, is amended to read: 
  9.18     Subdivision 1.  [STANDARDS.] The commissioner, in 
  9.19  consultation with the council, may adopt standards for 
  9.20  continuing education requirements and course approval.  The 
  9.21  standards must include requirements for continuing education in 
  9.22  the implementation of energy codes applicable to buildings and 
  9.23  other building codes designed to conserve energy.  Except for 
  9.24  the course content, the standards must be consistent with the 
  9.25  standards established for real estate agents and other 
  9.26  professions licensed by the Department of Commerce.  At a 
  9.27  minimum, the content of one hour of any required continuing 
  9.28  education must contain information on lead abatement rules and 
  9.29  safe lead abatement procedures. (a) The commissioner must adopt 
  9.30  standards for continuing education requirements and approval.  
  9.31  The standards must include instruction in the following subject 
  9.32  areas: 
  9.33     (1) safety and security, including but not limited to lead 
  9.34  abatement and lead-safe cleanup rules and procedures; 
  9.35     (2) liability and contracts; 
  9.36     (3) building code; 
 10.1      (4) customer service; and 
 10.2      (5) general project management. 
 10.3      (b) The commissioner must develop additional standards to 
 10.4   address changes in building codes and in laws relating to 
 10.5   residential construction and remodeling.  The commissioner must 
 10.6   consult with a private organization to assess the need for 
 10.7   additional course requirements.  The commissioner shall 
 10.8   publicize any additional standards not later than August 1 of 
 10.9   each calendar year. 
 10.10     Sec. 15.  [326.871] [PRELICENSURE EDUCATION.] 
 10.11     Subdivision 1.  [REQUIREMENT.] A qualifying person must 
 10.12  complete 30 hours of prelicensure education under this section 
 10.13  prior to applying to take the written examination under section 
 10.14  326.89. 
 10.15     Subd. 2.  [CURRICULUM.] (a) The commissioner must contract 
 10.16  with a private organization to develop the residential building 
 10.17  contractor and remodeler prelicensure curriculum.  
 10.18     (b) The curriculum must include the following subject areas:
 10.19     (1) building codes; 
 10.20     (2) fundamental construction techniques; 
 10.21     (3) state and federal statutes; 
 10.22     (4) state rules and federal regulations; and 
 10.23     (5) business practices. 
 10.24     (c) The curriculum is subject to the approval of the 
 10.25  commissioner. 
 10.26     (d) Entities that offer this curriculum must provide a 
 10.27  certificate of completion to enrollees who successfully complete 
 10.28  this curriculum. 
 10.29     Sec. 16.  Minnesota Statutes 2002, section 326.89, 
 10.30  subdivision 2, is amended to read: 
 10.31     Subd. 2.  [CONTENTS.] The application must include the 
 10.32  following information regarding the applicant: 
 10.33     (1) Minnesota workers' compensation insurance certificate; 
 10.34     (2) employment insurance account number; 
 10.35     (3) certificate of liability insurance; 
 10.36     (4) type of license requested; 
 11.1      (5) name and address of the applicant: 
 11.2      (i) name and address of the applicant's qualifying person, 
 11.3   if other than applicant; and 
 11.4      (ii) if the applicant is a sole proprietorship, the name 
 11.5   and address of the sole proprietor; if the applicant is a 
 11.6   partnership, the name and address of each partner; if the 
 11.7   applicant is a limited liability company, the name and address 
 11.8   of each governor and manager; if the applicant is a corporation, 
 11.9   the name and address of each of the corporate officers, 
 11.10  directors, and all shareholders holding more than ten percent of 
 11.11  the outstanding stock in the corporation; 
 11.12     (6) whether the applicant, any employee, or qualifying 
 11.13  person has ever been licensed in this or any other state and has 
 11.14  had a professional or vocational license refused, suspended, or 
 11.15  revoked, or has been the subject of any administrative action; 
 11.16     (7) whether the applicant, qualifying person, or any of the 
 11.17  applicant's corporate or partnership directors, limited 
 11.18  liability company governors, officers, limited or general 
 11.19  partners, managers, all shareholders holding more than ten 
 11.20  percent of the share of the corporation that have been issued, 
 11.21  or all members holding more than ten percent of the voting power 
 11.22  of the membership interests that have been issued, has been 
 11.23  convicted of a crime that either related directly to the 
 11.24  business for which the license is sought or involved fraud, 
 11.25  misrepresentation, or misuse of funds; has suffered a judgment 
 11.26  in a civil action involving fraud, misrepresentation, 
 11.27  negligence, or breach of contract, or conversion within the ten 
 11.28  years prior to the submission of the application; or has had any 
 11.29  government license or permit suspended or revoked as a result of 
 11.30  an action brought by a federal, state, or local governmental 
 11.31  unit or agency in this or any other state; 
 11.32     (8) the applicant's and qualifying person's business 
 11.33  history for the past five years and whether the applicant, any 
 11.34  employee, or qualifying person has ever filed for bankruptcy or 
 11.35  protection from creditors or has any unsatisfied judgments 
 11.36  against the applicant, employee, or qualifying person; 
 12.1      (9) where the applicant is a firm, partnership, sole 
 12.2   proprietorship, limited liability company, corporation, or 
 12.3   association, whether there has been a sale or transfer of the 
 12.4   business or other change in ownership, control, or name in the 
 12.5   last five years and the details thereof, and the names and 
 12.6   addresses of all prior, predecessor, subsidiary, affiliated, 
 12.7   parent, or related entities, and whether each such entity, or 
 12.8   its owners, officers, directors, members or shareholders holding 
 12.9   more than ten percent of the stock, or an employee has ever 
 12.10  taken or been subject to an action that is subject to clause 
 12.11  (6), (7), or (8) in the last ten years; and 
 12.12     (10) whether the qualifying person is the qualifying person 
 12.13  for more than one licensee; and 
 12.14     (11) whether the qualifying person has completed the 
 12.15  prelicensure curriculum required under section 326.871, and, if 
 12.16  so, a copy of the certificate of completion of that curriculum. 
 12.17     For purposes of this subdivision, "applicant" includes 
 12.18  employees who exercise management or policy control over the 
 12.19  residential contracting and remodeling activities in the state 
 12.20  of Minnesota, including affiliates, partners, directors, 
 12.21  governors, officers, limited or general partners, managers, all 
 12.22  shareholders holding more than ten percent of the shares that 
 12.23  have been issued, a shareholder holding more than ten percent of 
 12.24  the voting power of the shares that have been issued, or all 
 12.25  members holding more than ten percent of the membership 
 12.26  interests that have been issued or more than ten percent of the 
 12.27  voting power of the membership interests that have been issued. 
 12.28     The commissioner may require further information as the 
 12.29  commissioner deems appropriate to administer the provisions and 
 12.30  further the purposes of this chapter.  
 12.31     Sec. 17.  Minnesota Statutes 2002, section 326.96, is 
 12.32  amended to read: 
 12.33     326.96 [PUBLIC EDUCATION.] 
 12.34     Subdivision 1.  [LICENSING.] The commissioner may develop 
 12.35  materials and programs to educate the public concerning 
 12.36  licensing requirements and methods for reporting unlicensed 
 13.1   contracting activity. 
 13.2      Subd. 2.  [HOMEOWNER'S GUIDE.] (a) The commissioner must 
 13.3   develop a guide for homeowners and make it available in 
 13.4   electronic form to real estate brokers and salespersons, 
 13.5   residential building contractors and remodelers, and the general 
 13.6   public.  The guide must include information on: 
 13.7      (1) moisture problems in residential buildings; 
 13.8      (2) the homeowner's warranty required under chapter 327A; 
 13.9      (3) disclosures regarding the history and condition of 
 13.10  property that are required to be made to prospective purchasers 
 13.11  by sellers and real estate brokers and salespersons; 
 13.12     (4) prepurchase inspection of residential property by home 
 13.13  inspectors, local government employees, and other persons or 
 13.14  entities; and 
 13.15     (5) other sources of information for homeowners and 
 13.16  prospective homeowners, including the commissioner's Web site. 
 13.17     (b) The guide must include pages at the front for 
 13.18  homeowners to record information about their home and its 
 13.19  maintenance history, maintenance instructions received from the 
 13.20  builder or relating to appliances and ventilation equipment, and 
 13.21  homeowners and appliance warranties and owners guides. 
 13.22     (c) The commissioner must, in the homeowner's guide and 
 13.23  other reasonably appropriate ways, encourage homeowners and 
 13.24  prospective homeowners to transfer possession of the homeowner's 
 13.25  guide, including information added to it by previous homeowners, 
 13.26  at the time of transfer of ownership.  The commissioner must 
 13.27  encourage real estate brokers and salespersons to facilitate 
 13.28  those transfers. 
 13.29     Subd. 3.  [DATABASE OF HOME INSPECTORS.] (a) The 
 13.30  commissioner must create a Web page providing a list of persons 
 13.31  who inspect residential properties for prospective purchasers 
 13.32  and information on how to contact the persons listed.  The list 
 13.33  must consist of persons who request to be placed on the list.  
 13.34  The Web page must state that the list consists of persons who 
 13.35  have asked to be listed, that there is no state certification or 
 13.36  licensing programs for home inspectors, and that the 
 14.1   commissioner has not investigated the qualifications of the 
 14.2   persons listed. 
 14.3      (b) The Web page must include advice on how to select and 
 14.4   make best use of a home inspector. 
 14.5      Sec. 18.  Minnesota Statutes 2002, section 327A.05, is 
 14.6   amended to read: 
 14.7      327A.05 [REMEDIES.] 
 14.8      Subdivision 1.  [NEW HOME WARRANTIES.] Upon breach of any 
 14.9   warranty imposed by section 327A.02, subdivision 1, the vendee 
 14.10  shall have a cause of action against the vendor for damages 
 14.11  arising out of the breach, or for specific performance.  The 
 14.12  vendee must also be awarded the vendee's costs, disbursements, 
 14.13  and reasonable attorney fees, if the vendee is the prevailing 
 14.14  party and the vendor refused to perform the vendor's obligations 
 14.15  under the warranty without a good faith basis for the refusal.  
 14.16  Damages shall be limited to: 
 14.17     (a) the amount necessary to remedy the defect or breach; or 
 14.18     (b) the difference between the value of the dwelling 
 14.19  without the defect and the value of the dwelling with the defect.
 14.20     Subd. 2.  [HOME IMPROVEMENT WARRANTY.] Upon breach of any 
 14.21  warranty imposed by section 327A.02, subdivision 3, the owner 
 14.22  shall have a cause of action against the home improvement 
 14.23  contractor for damages arising out of the breach, or for 
 14.24  specific performance.  Damages shall be limited to the amount 
 14.25  necessary to remedy the defect or breach.  The owner must also 
 14.26  be awarded the owner's costs, disbursements, and reasonable 
 14.27  attorney fees, if the owner is the prevailing party and the 
 14.28  vendor refused to perform the vendor's obligations under the 
 14.29  warranty without a good faith basis for the refusal. 
 14.30     Subd. 3.  [STATUTORY CURE.] (a) At least 90 days before 
 14.31  filing a cause of action, the vendee or owner shall give written 
 14.32  notice by certified mail, return receipt requested, to the 
 14.33  vendor or home improvement contractor specifying in reasonable 
 14.34  detail the basis of the cause of action.  
 14.35     (b) In a multiunit cause of action, at least 90 days before 
 14.36  filing a cause of action, the vendee or owner shall serve the 
 15.1   vendor or home improvement contractor, together with the 
 15.2   complaint, a written notice by certified mail, return receipt 
 15.3   requested, to the vendor or home improvement contractor 
 15.4   specifying in reasonable detail the basis of the dwelling 
 15.5   action.  The notice in a multiunit dwelling action involving 
 15.6   alleged defects that are substantially similar in multiple 
 15.7   residential units may comply with this section by providing a 
 15.8   reasonably detailed description of the alleged defects in a fair 
 15.9   and representative sample of the affected residential units.  
 15.10     (c) After receipt of a notice described in paragraph (a) or 
 15.11  (b), the vendor or home improvement contractor may inspect the 
 15.12  dwelling to determine the nature and cause of the alleged 
 15.13  defects and the nature and extent of any repairs and 
 15.14  replacements necessary to remedy the alleged defects.  The 
 15.15  vendee or owner shall ensure that the dwelling is made available 
 15.16  for inspection no later than ten days after the purchaser 
 15.17  receives the request of the vendor or home improvement 
 15.18  contractor for an inspection.  The vendor or home improvement 
 15.19  contractor shall provide reasonable notice to the vendee or 
 15.20  owner before conducting the inspection.  The inspection shall be 
 15.21  conducted at a reasonable time.  The vendor or home improvement 
 15.22  contractor may use reasonable measures, including testing, to 
 15.23  determine the nature and cause of the alleged defects and the 
 15.24  nature and extent of any repairs or replacements necessary to 
 15.25  remedy the alleged defects.  If the vendor or home improvement 
 15.26  contractor conducts testing pursuant to this paragraph, the 
 15.27  vendor or home improvement contractor shall restore the unit to 
 15.28  its condition before the testing. 
 15.29     (d) Within 60 days after receipt of the notice described in 
 15.30  paragraph (a) or (b), the vendor or home improvement contractor 
 15.31  shall send to the vendee or owner by certified mail, return 
 15.32  receipt requested, a good faith, written response to the vendee 
 15.33  or owner's notice.  The response may include an offer to repair 
 15.34  or replace any alleged defects, to have the alleged defects 
 15.35  repaired or replaced at the expense of the vendor or home 
 15.36  improvement contractor, or to provide monetary compensation to 
 16.1   the vendee or owner.  The offer shall describe in reasonable 
 16.2   detail all repairs or replacements that the vendor or home 
 16.3   improvement contractor is offering to make or provide to the 
 16.4   dwelling and a reasonable estimate of the date by which the 
 16.5   repairs or replacements will be made or monetary compensation 
 16.6   will be provided.  
 16.7      (e) If the vendor or home improvement contractor does not 
 16.8   provide a written response to the vendee or owner's notice 
 16.9   within 60 days, the vendee or owner may file a cause of action 
 16.10  without waiting for the expiration of 90 days as required by 
 16.11  paragraph (a) or (b), or a stay, if entered, shall be lifted to 
 16.12  allow the action to proceed. 
 16.13     (f) Within 20 days after receipt of the offer made pursuant 
 16.14  to paragraph (d), the vendee or owner shall give a good faith, 
 16.15  written response to the offer.  A vendee or owner who accepts 
 16.16  the offer made pursuant to paragraph (d), shall do so in writing 
 16.17  by certified mail, return receipt requested.  A vendee or owner 
 16.18  who rejects the offer made pursuant to paragraph (d), shall 
 16.19  respond in writing by certified mail, return receipt requested.  
 16.20  The response shall include the basis for the vendee or owner's 
 16.21  rejection of the offer and may include a counteroffer.  Within 
 16.22  ten days after receipt of the response of the vendee or owner, 
 16.23  the vendor or home improvement contractor may make a best and 
 16.24  final offer to the vendee in writing by certified mail, return 
 16.25  receipt requested.  
 16.26     (g) The applicable statute of limitations, within which a 
 16.27  vendee or owner must bring a claim or action under this chapter, 
 16.28  shall be suspended from the time of commencement of procedures 
 16.29  under this subdivision until the offer made pursuant to 
 16.30  paragraph (d) has been rejected.