SF 3744

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

A bill for an act
relating to housing; providing for the licensure of industrialized-modular building
contractors and salespeople; amending Minnesota Statutes 2004, sections 326.83,
by adding subdivisions; 326.84, subdivisions 1, 1b, 3.

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

Section 1.

Minnesota Statutes 2004, section 326.83, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Industrial-modular building. new text end

new text begin "Industrialized-modular building"
means any building which is of closed construction, meaning constructed in a manner
that concealed parts or that the processes of manufacture cannot be inspected at the
site, without disassembly, damage, or destruction, and which is made or assembled
in manufacturing facilities, off the building site, for installation, or assembly and
installation, on the building site. Industrialized-modular building includes, but is not
limited to, modular housing which is factory-built single-family and multifamily housing
including closed wall panelized housing and other modular, nonresidential buildings.
Industrialized-modular building does not include any structure subject to the requirements
of the National Manufactured Home Construction and Safety Standards Act of 1974.
new text end

Sec. 2.

Minnesota Statutes 2004, section 326.83, is amended by adding a subdivision
to read:

new text begin Subd. 5b. new text end

new text begin Industrialized-modular building contractor. new text end

new text begin "Industrialized-modular
building contractor" means a person who is a licensed residential contractor as defined in
subdivision 15 and is in the business of selling, constructing a foundation for, installing,
and on-site completion of industrialized-modular building as defined in subdivision 5a,
or of contracting or offering to contract with an owner for the sale, construction of a
foundation for, installation, and on-site completion of industrialized-modular buildings.
An industrialized-modular building contractor may also contract or offer to contract with
an owner to improve existing real estate by adding an industrialized-modular addition to
existing real estate.
new text end

Sec. 3.

Minnesota Statutes 2004, section 326.84, subdivision 1, is amended to read:

Subdivision 1.

Persons required to be licensed.

A person who meets the definition
of a residential remodeler as defined in section 326.83, subdivision 16, or a residential
building contractor as defined in section 326.83, subdivision 15, must be licensed as a
residential building contractor or residential remodeler. new text begin A person who meets the definition
of industrialized-modular building contractor as defined in section 326.83, subdivision
5b, must be licensed as a residential building contractor as defined in section 326.83,
subdivision 15.
new text end

Sec. 4.

Minnesota Statutes 2004, section 326.84, subdivision 1b, is amended to read:

Subd. 1b.

Prohibition.

Except as provided in subdivision 3, no persons required
to be licensed by subdivision 1 may act or hold themselves out as residential building
contractors deleted text begin or deleted text end new text begin , new text end residential remodelers new text begin , or industrialized-modular building contractors new text end for
compensation without a valid license issued by the commissioner.

Sec. 5.

Minnesota Statutes 2004, section 326.84, subdivision 3, is amended to read:

Subd. 3.

Exemptions.

The license requirement does not apply to:

(1) an employee of a licensee performing work for the licensee;

(2) a material person, manufacturer, or retailer furnishing finished products,
materials, or articles of merchandise who does not install or attach the items;

new text begin (3) an industrialized-modular buildings manufacturer;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end an owner or owners of residential real estate who build or improve residential
real estate and who do the work themselves or jointly with the owner's own bona fide
employees. This exemption does not apply to a person who engages in a pattern of
building or improving real estate for purposes of resale. Such a pattern is presumed to exist
if the person constructs or improves more than one property within any 24-month period;

deleted text begin (4) deleted text end new text begin (5) new text end an architect or engineer engaging in professional practice as defined in this
chapter;

deleted text begin (5) deleted text end new text begin (6) new text end a person whose total gross annual receipts from projects regulated under this
section do not exceed $15,000;

deleted text begin (6) deleted text end new text begin (7) new text end a mechanical contractor;

deleted text begin (7) deleted text end new text begin (8) new text end a plumber, electrician, or other person whose profession is otherwise subject
to statewide licensing, when engaged in the activity which is the subject of licensure;

deleted text begin (8) deleted text end new text begin (9) new text end specialty contractors who provide only one special skill as defined in section
326.83;

deleted text begin (9) deleted text end new text begin (10) new text end a school district, or a technical college governed under chapter 136F;

deleted text begin (10) deleted text end new text begin (11) new text end manufactured housing installers; and

deleted text begin (11) deleted text end new text begin (12) new text end Habitat for Humanity and Builders Outreach Foundation, and their
individual volunteers when engaged in activities on their behalf.

To qualify for the exemption in clause deleted text begin (5) deleted text end new text begin (6) new text end , a person must obtain a certificate of
exemption from licensing from the commissioner.

A certificate of exemption will be issued upon the applicant's filing with the
commissioner, an affidavit stating that the applicant does not expect to exceed $15,000
in gross annual receipts derived from contracting activities during the calendar year for
which the exemption is requested.

To renew the exemption in clause deleted text begin (5) deleted text end new text begin (6) new text end , the applicant must file an affidavit stating
that the applicant did not exceed $15,000 in gross annual receipts during the past calendar
year, and the applicant does not expect to exceed $15,000 in gross annual receipts during
the calendar year for which the exemption is requested.

If a person, operating under the exemption in clause deleted text begin (5) deleted text end new text begin (6) new text end , exceeds $15,000 in gross
receipts during any calendar year, the person must immediately surrender the exemption
certificate and apply for the appropriate license. The person must remain licensed until
such time as the person's gross annual receipts during a calendar year fall below $15,000.
The person may then apply for this exemption for the next calendar year.

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective August 1, 2006.
new text end