SF 3413

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

A bill for an act
relating to commerce; providing for action against the license of a building
contractor for failure to pay an arbitration award or court judgment related to the
work; amending Minnesota Statutes 2004, section 326.91, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 326.91, subdivision 1, is amended to read:

Subdivision 1.

Cause.

The commissioner may by order deny, suspend, or revoke
any license or may censure a licensee, and may impose a civil penalty as provided for
in section 45.027, subdivision 6, if the commissioner finds that the order is in the public
interest, and that the applicant, licensee, or affiliate of an applicant or licensee, or other
agent, owner, partner, director, governor, shareholder, member, officer, qualifying person,
or managing employee of the applicant or licensee or any person occupying a similar
status or performing similar functions:

(1) has filed an application for a license which is incomplete in any material respect
or contains any statement which, in light of the circumstances under which it is made, is
false or misleading with respect to any material fact;

(2) has engaged in a fraudulent, deceptive, or dishonest practice;

(3) is permanently or temporarily enjoined by any court of competent jurisdiction
from engaging in or continuing any conduct or practice involving any aspect of the
business;

(4) has failed to reasonably supervise employees, agents, subcontractors, or
salespersons, or has performed negligently or in breach of contract, so as to cause injury
or harm to the public;

(5) has violated or failed to comply with any provision of sections 326.83 to 326.98
or any rule or order under sections 326.83 to 326.98;

(6) has been shown to be incompetent, untrustworthy, or financially irresponsible;

(7) has been convicted of a violation of the State Building Code or, in jurisdictions
that do not enforce the State Building Code, has refused to correct a violation of the State
Building Code when the violation has been certified by a Minnesota licensed structural
engineer;

(8) has failed to use the proceeds of any payment made to the licensee for the
construction of, or any improvement to, residential real estate, as defined in section 326.83,
subdivision 17, for the payment of labor, skill, material, and machinery contributed to the
construction or improvement, knowing that the cost of any labor performed, or skill,
material, or machinery furnished for the improvement remains unpaid;

(9) has not furnished to the person making payment either a valid lien waiver as to
any unpaid labor performed, or skill, material, or machinery furnished for an improvement,
or a payment bond in the basic amount of the contract price for the improvement
conditioned for the prompt payment to any person or persons entitled to payment;

(10) has engaged in conduct which was the basis for a contractor's recovery fund
payment pursuant to section 326.975, which payment has not been reimbursed;

(11) has engaged in bad faith, unreasonable delays, or frivolous claims in defense of
a civil lawsuit arising out of their activities as a licensee under this chapter;

(12) has had a judgment entered against them for failure to make payments to
employees or subcontractors, and all appeals of the judgment have been exhausted or
the period for appeal has expired;

(13) if unlicensed, has obtained a building permit by the fraudulent use of a fictitious
license number or the license number of another, or, if licensed, has knowingly allowed
an unlicensed person to use the licensee's license number for the purpose of fraudulently
obtaining a building permit; deleted text begin or
deleted text end

(14) has made use of forged mechanics' lien waivers under chapter 514 new text begin ; or
new text end

new text begin (15) has refused or otherwise failed to pay an arbitration award or court judgment
in favor of a customer and arising out of the licensee's activities as a licensee under
section 326.84 within ten days after all appeals have been exhausted or the period for
appeal has expired new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end