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Minnesota Legislature

Office of the Revisor of Statutes

SF 3627

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to construction professions; creating a Board of Residential Construction;
authorizing rulemaking; amending Minnesota Statutes 2007 Supplement, sections
326.87, subdivisions 1, 2, 5, 10, 21; 326.91, subdivision 1; 326B.02, subdivisions
2, 5; 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 [326.851] BOARD OF RESIDENTIAL CONSTRUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section 326.852,
the following terms have the meanings given.
new text end

new text begin (b) "Board" means the Board of Residential Construction.
new text end

new text begin Subd. 2. new text end

new text begin Composition. new text end

new text begin (a) The Board of Residential Construction shall consist of
19 members. Eighteen members shall be appointed by the governor with the advice and
consent of the senate and shall be voting members. Appointments of members by the
governor shall be made in accordance with section
new text end new text begin 15.066 new text end new text begin . If the senate votes to refuse
to consent to an appointment of a member made by the governor, the governor shall
appoint a new member with the advice and consent of the senate. One member shall be
the commissioner of labor and industry or the commissioner's designee, who shall be a
voting member. Of the 18 appointed members, the composition shall be as follows:
new text end

new text begin (1) four members shall be licensed residential building contractors or licensed
residential remodelers, two of whom reside in the seven-county metropolitan area and
two of whom reside in greater Minnesota;
new text end

new text begin (2) one member shall be a licensed engineer;
new text end

new text begin (3) two members shall be certified building officials as defined in section 16B.65,
one of whom must reside in the seven-county metropolitan area and one of whom must
reside in greater Minnesota;
new text end

new text begin (4) one member shall be a licensed plumber;
new text end

new text begin (5) one member shall be a licensed electrician;
new text end

new text begin (6) one member shall be a bonded mechanical contractor;
new text end

new text begin (7) one member shall be a licensed architect;
new text end

new text begin (8) two members shall be carpenters, one of whom must reside in the metropolitan
area and one of whom must reside in greater Minnesota;
new text end

new text begin (9) one member shall be a fire marshal;
new text end

new text begin (10) one member shall be a fire chief;
new text end

new text begin (11) one member shall be a licensed manufactured home installer as defined under
section 327.31, subdivision 11; and
new text end

new text begin (12) two members shall be public members as defined by section new text end new text begin 214.02 new text end new text begin , one of
whom must reside in the seven-county metropolitan area and one of whom must reside in
greater Minnesota.
new text end

new text begin (b) All of the appointed members except for the public members, fire marshal,
and fire chief must have at least four years of experience in residential construction or
have successfully completed an apprenticeship under an approved apprentice agreement
under chapter 178.
new text end

new text begin (c) One of the licensed residential building contractors or licensed residential
remodelers shall be appointed to an initial term to end December 31, 2011. Two of
the licensed residential building contractors or licensed residential remodelers shall be
appointed for an initial term to end December 31, 2012. One of the licensed residential
building contractors or licensed residential remodelers shall be appointed for an initial
term to end December 31, 2013. The licensed engineer shall be appointed for an initial
term to end December 31, 2013. One of the certified building officials shall be appointed
for an initial term to end December 31, 2011. The other building official shall be appointed
for an initial term to end December 31, 2012. The licensed plumber shall be appointed
for an initial term to end December 31, 2013. The licensed electrician shall be appointed
for an initial term to end December 31, 2013. The bonded mechanical contractor shall be
appointed for an initial term to end December 31, 2011. The licensed architect shall be
appointed for an initial term to end December 31, 2012. One carpenter shall be appointed
for an initial term to end December 31, 2011. The other carpenter shall be appointed for
an initial term to end December 31, 2013. The fire marshal shall be appointed for an initial
term to end December 31, 2012. The fire chief shall be appointed for an initial term to
end December 31, 2011. The manufactured home installer shall be appointed for an
initial term to end December 31, 2012. One public member shall be appointed for an
initial term to end December 31, 2011. The other public member shall be appointed for
an initial term to end December 31, 2012.
new text end

new text begin (d) The mechanical contractor must give bond to the state under section 326.992. All
other appointed members, except for the carpenter and the public members, must possess
a current occupational or professional license issued by the state and maintain that license
for the duration of their terms. All appointed members must be residents of Minnesota at
the time of and throughout their appointments. The term of any appointed member who
does not maintain membership qualification status ends on the date of the status change
and the governor shall appoint a new member with the advice and consent of the senate. It
is the responsibility of a member to notify the board of any change in status.
new text end

new text begin (e) Except for the initial terms designated in paragraph (c), the terms of appointed
members are three years, with the terms ending December 31. Members appointed by
the governor are limited to three consecutive terms. The governor shall reappoint the
current members or appoint replacement members with the advice and consent of the
senate. Midterm vacancies must be filled for the remaining portion of the term. Vacancies
occurring with less than six months time remaining in the term must be filled for the
existing term and the following three-year term. Members may serve until successors are
appointed, but in no case later than July 1 in a year in which the term expires unless
reappointed.
new text end

new text begin Subd. 3. new text end

new text begin Powers; duties; administrative support. new text end

new text begin (a) The board has the power to:
new text end

new text begin (1) elect a chair, vice chair, and secretary as provided in subdivision 7;
new text end

new text begin (2) adopt bylaws that specify the duties of its officers and the meeting dates of
the board, and contain other provisions as may be useful and necessary for the efficient
conduct of the business of the board;
new text end

new text begin (3) adopt the residential code that must be followed in this state and any residential
code amendments. The board shall adopt the residential code and any amendments
pursuant to chapter 14 and as provided in subdivision 7, paragraphs (b) and (c);
new text end

new text begin (4) review requests for final interpretations and issue final interpretations as provided
in section
new text end new text begin 16B.63, subdivision 5 new text end new text begin ;
new text end

new text begin (5) adopt rules that regulate the licensure or registration of residential building
contractors and residential remodelers as defined in section
new text end new text begin 326.83 new text end new text begin . The board shall adopt
these rules pursuant to chapter 14 and as provided in subdivision 7, paragraphs (d) and (e);
new text end

new text begin (6) refer complaints or other communications to the commissioner as provided in
subdivision 9;
new text end

new text begin (7) approve per diem and expenses deemed necessary for its members as provided in
subdivision 4;
new text end

new text begin (8) approve license reciprocity agreements;
new text end

new text begin (9) select from its members individuals to serve on any other state advisory council,
board, or committee; and
new text end

new text begin (10) recommend fees for licenses and certifications.
new text end

new text begin (b) Except for the powers granted to the Board of Residential Construction,
Plumbing Board, Board of Electricity, and the Board of High Pressure Piping Systems,
the commissioner of labor and industry shall administer and enforce the provisions of
this chapter and any rules adopted under it.
new text end

new text begin (c) The board shall comply with section new text end new text begin 15.0597, subdivisions 2 and 4 new text end new text begin .
new text end

new text begin (d) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by other appropriate boards under
this chapter. The commissioner shall provide staff support to the board. The support
includes professional, legal, technical, and clerical staff necessary to perform rulemaking
and other duties assigned to the board. The commissioner shall supply necessary office
space and supplies to assist the board in its duties. The commissioner shall post on the
department's official Web site meeting notices and meeting minutes for all boards for
whom the commissioner provides administrative support under this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin (a) Members of the board may be compensated at the rate
of $55 a day spent on board activities, when authorized by the board, plus expenses in
the same manner and amount as authorized by the commissioner's plan adopted under
section
new text end
new text begin 43A.18, subdivision 2 new text end new text begin . Members who, as a result of time spent attending board
meetings, incur child care expenses that would not otherwise have been incurred, may be
reimbursed for those expenses upon board authorization.
new text end

new text begin (b) Members who are state employees or employees of political subdivisions of
the state must not receive the daily payment for activities that occur during working
hours for which they are compensated by the state or political subdivision. However,
an employee of the state or political subdivision may receive the daily payment if the
employee uses vacation time or compensatory time accumulated in accordance with a
collective bargaining agreement or compensation plan for board activities. Members who
are state employees or employees of political subdivisions of the state may receive the
expenses provided for in this subdivision unless the expenses are reimbursed by another
source. Members who are state employees or employees of political subdivisions of the
state may be reimbursed for child care expenses only for time spent on board activities
that are outside their working hours.
new text end

new text begin (c) The board shall adopt internal standards prescribing what constitutes a day spent
on board activities for purposes of making daily payments under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Removal; vacancies. new text end

new text begin (a) An appointed member of the board may be
removed by the governor at any time (1) for cause, after notice and hearing, or (2) after
missing three consecutive meetings. The chair of the board shall inform the governor of
an appointed member missing three consecutive meetings. After the second consecutive
missed meeting and before the next meeting, the secretary of the board shall notify the
appointed member in writing that the member may be removed for missing the next
meeting. In the case of a vacancy on the board, the governor shall, with the advice
and consent of the senate, appoint a person to fill the vacancy for the remainder of the
unexpired term pursuant to subdivision 2, paragraph (e).
new text end

new text begin (b) Vacancies shall be filled pursuant to section new text end new text begin 15.0597, subdivisions 5 and 6 new text end new text begin .
new text end

new text begin Subd. 6. new text end

new text begin Membership vacancies within three months of appointment.
new text end

new text begin Notwithstanding any law to the contrary, when a vacancy on the board occurs within
three months after being filled through the appointments process, the governor may,
upon notification to the Office of the Secretary of State, choose a new member from the
applications on hand and need not repeat the process.
new text end

new text begin Subd. 7. new text end

new text begin Officers, quorum, voting. new text end

new text begin (a) The board shall elect annually from its
members a chair, vice chair, and secretary. A quorum of the board shall consist of a
majority of the members of the board qualified to vote on the matter in question. All
questions concerning the manner in which a meeting is conducted or called that is not
covered by statute shall be determined by Robert's Rules of Order, revised, unless
otherwise specified by the bylaws.
new text end

new text begin (b) Each residential code amendment considered by the board that receives an
affirmative two-thirds or more majority vote of all of the voting members of the board
shall be included in the next residential code rulemaking proceeding initiated by the board.
If a residential code amendment considered, or reconsidered, by the board receives less
than a two-thirds majority vote of all of the voting members of the board, the residential
code amendment must not be included in the next residential code rulemaking proceeding
initiated by the board.
new text end

new text begin (c) The board may reconsider residential code amendments during an active
residential code rulemaking proceeding in which the amendment previously failed to
receive a two-thirds majority vote of all of the voting members of the board only if new or
updated information that affects the code amendment is presented to the board. The board
may also reconsider failed code amendments in subsequent code rulemaking proceedings.
new text end

new text begin (d) Each proposed rule and rule amendment considered by the board pursuant to the
rulemaking authority specified in subdivision 3, paragraph (a), clause (5), that receives an
affirmative two-thirds majority vote of all of the voting members of the board must be
included in the next rulemaking proceeding initiated by the board. If a proposed rule or
rule amendment considered, or reconsidered, by the board receives less than an affirmative
two-thirds majority vote of all of the voting members of the board, the proposed rule or rule
amendment must not be included in the next rulemaking proceeding initiated by the board.
new text end

new text begin (e) The board may reconsider a proposed rule or rule amendment during an active
rulemaking proceeding in which the amendment previously failed to receive an affirmative
two-thirds majority vote of all of the voting members of the board only if new or updated
information that affects the proposed rule or rule amendment is presented to the board.
The board may also reconsider a failed proposed rule or rule amendment in subsequent
rulemaking proceedings.
new text end

new text begin Subd. 8. new text end

new text begin Board meetings. new text end

new text begin (a) The board shall meet at least two times each calendar
year at times the board specifies. Notice and conduct of all meetings are governed by
chapter 13D and the bylaws.
new text end

new text begin (b) If compliance with section new text end new text begin 13D.02 new text end new text begin is impractical, the board may conduct a
meeting of its members by telephone or other electronic means so long as the following
conditions are met:
new text end

new text begin (1) all members of the board participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
new text end

new text begin (2) members of the public present at the regular meeting location of the board can
clearly hear all discussion and testimony and all votes of members of the board and, if
needed, receive those services required by sections
new text end new text begin 15.44 new text end new text begin and new text end new text begin 15.441 new text end new text begin ;
new text end

new text begin (3) at least one member of the board is physically present at the regular meeting
location; and
new text end

new text begin (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
new text end

new text begin Each member of the board participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and
participating in all proceedings.
new text end

new text begin If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board, to the extent practical, shall allow a person to monitor
the meeting electronically from a remote location. The board may require the person
making such a connection to pay for documented costs that the board incurs as a result of
the additional connection.
new text end

new text begin If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and that
a person may monitor the meeting electronically from a remote location. Any person
monitoring the meeting electronically from a remote location may be required to pay
documented costs incurred by the board as a result of the additional connection. The
timing and method of providing notice is governed by section
new text end new text begin 13D.04 new text end new text begin .
new text end

new text begin Subd. 9. new text end

new text begin Complaints. new text end

new text begin (a) The board shall promptly forward to the commissioner
the substance of any complaint or communication it receives, whether written or oral, that
alleges or implies a violation of a statute, rule, or order that the commissioner has the
authority to enforce pertaining to: (1) the license or registration of any person authorized
by the commissioner to provide residential building contractor or residential remodeling
services; (2) the performance or offering to perform residential building contractor or
residential remodeling services requiring licensure or registration; or (3) residential code
compliance. Each complaint or communication that is forwarded to the commissioner
must be submitted on a form provided by the commissioner.
new text end

new text begin (b) The commissioner shall advise the board of the status of the complaint within 90
days after the board's written submission is received, or within 90 days after the board
is provided with a written request for additional information or documentation from the
commissioner or the commissioner's designee, whichever is later. The commissioner shall
advise the board of the disposition of a complaint referred by the board within 180 days
after the board's written submission is received. The commissioner shall annually report to
the board a summary of the actions taken in response to complaints referred by the board.
new text end

new text begin Subd. 10. new text end

new text begin Data Practices Act. new text end

new text begin The board is subject to chapter 13, the Minnesota
Government Data Practices Act, and shall protect data classified as not public from
unlawful disclosure.
new text end

new text begin Subd. 11. new text end

new text begin Official records. new text end

new text begin The board shall make and preserve all records necessary
for full and accurate knowledge of its official activities in accordance with section
new text end new text begin 15.17 new text end new text begin .
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 2.

new text begin [326.852] RECIPROCITY WITH OTHER STATES.
new text end

new text begin new text end

new text begin (a) The commissioner may enter into reciprocity agreements for residential building
contractor and residential building remodeler licenses with another state if approved by the
board. Once approved by the board, the commissioner may issue a temporary residential
building contractor or residential remodeler license without requiring the applicant to
pass an examination provided the applicant:
new text end

new text begin (1) submits an application under section new text end new text begin 326.84 new text end new text begin ;
new text end

new text begin (2) pays the fee required under section new text end new text begin 326.86 new text end new text begin ; and
new text end

new text begin (3) holds a valid comparable license in the state participating in the agreement.
new text end

new text begin (b) Agreements are subject to the following:
new text end

new text begin (1) the parties to the agreement must administer a statewide licensing program that
includes examination and qualifying experience or training comparable to that required
in Minnesota;
new text end

new text begin (2) the experience and training requirements under which an individual applicant
qualified for examination in the qualifying state must be deemed equal to or greater than
required for an applicant making application in Minnesota at the time the applicant
acquired the license in the qualifying state;
new text end

new text begin (3) the applicant must have acquired the license in the qualifying state through
an examination deemed equivalent by the commissioner to the license examination
in Minnesota;
new text end

new text begin (4) at the time of application, the applicant must hold a valid license in the qualifying
state and have held the license continuously for at least one year before making application
in Minnesota;
new text end

new text begin (5) an applicant is not eligible for a license under this section if the applicant has
failed the license examination in Minnesota, or if the applicant's license has been revoked
or suspended;
new text end

new text begin (6) an applicant who has failed to renew a residential building contractor or licensed
residential remodeler license for two years or more after its expiration is not eligible for
a license under this section; and
new text end

new text begin (7) any person granted a temporary license under this section must obtain a
permanent license pursuant to section 326.84 within six months of receiving a temporary
license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 3.

Minnesota Statutes 2007 Supplement, section 326.87, subdivision 1, is
amended to read:


Subdivision 1.

Standards.

The commissioner may by rule adopt standards for
continuing education requirements and course and instructor approvalnew text begin for all licenses
issued by the commissioner under sections 326.2411 to 326.992
new text end. The standards must
include requirements for continuing education in the implementation of energy codes
applicable to buildings and other building codes designed to conserve energynew text begin and all
other requirements under section 326.87
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 4.

Minnesota Statutes 2007 Supplement, section 326.87, subdivision 2, is
amended to read:


Subd. 2.

Hours.

deleted text beginA qualifying person of a licenseedeleted text endnew text begin Licensees subject to continuing
education standards under subdivision 1
new text end must provide proof of completion of seven hours
of continuing education per year in the regulated industry in which the licensee is licensed.

Credit may not be earned if the licensee has previously obtained credit for the same
course as either a student or instructor during the same licensing period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 5.

Minnesota Statutes 2007 Supplement, section 326.87, subdivision 5, is
amended to read:


Subd. 5.

Content.

(a) Continuing education consists of approved courses that
impart appropriate and related knowledge in the regulated industries deleted text beginpursuant to sections
326.83 to 326.98
deleted text endnew text begin for which the commissioner adopts standards under subdivision 1.
Courses may include relevant materials that are included in licensing exams subject to the
limitations imposed in paragraph (e)
new text end. The burden of demonstrating that courses impart
appropriate and related knowledge is upon the person seeking approval or credit.

(b) Course examinations will not be required for continuing education courses
unless they are required by the sponsor.

(c) Textbooks are not required to be used for continuing education courses. If
textbooks are not used, the coordinator must provide students with a syllabus containing,
at a minimum, the course title, the times and dates of the course offering, the names and
addresses or telephone numbers of the course coordinator and instructor, and a detailed
outline of the subject materials to be covered. Any written or printed material given to
students must be of readable quality and contain accurate and current information.

(d) Upon completion of an approved course, licensees shall earn one hour of
continuing education credit for each hour approved by the commissioner. Each continuing
education course must be attended in its entirety in order to receive credit for the number
of approved hours. Courses may be approved for full or partial credit, and for more than
one regulated industry.

Continuing education credit in an approved course shall be awarded to presenting
instructors on the basis of one credit for each hour of preparation for the initial presentation,
which may not exceed three hours total credit for each approved course. Continuing
education credit may not be earned if the licensee has previously obtained credit for the
same course as a licensee or as an instructor within the three years immediately prior.

(e) The following courses will not be approved for credit:

(1) courses designed solely to prepare students for a license examination;

(2) courses in mechanical office or business skills, including typing, speed reading,
or other machines or equipment. Computer courses are allowed, if appropriate and related
to the regulated industry of the licensee;

(3) courses in sales promotion, including meetings held in conjunction with the
general business of the licensee;

(4) courses in motivation, salesmanship, psychology, time management, or
communication; or

(5) courses that are primarily intended to impart knowledge of specific products of
specific companies, if the use of the product or products relates to the sales promotion or
marketing of one or more of the products discussed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 6.

Minnesota Statutes 2007 Supplement, section 326.87, subdivision 10, is
amended to read:


Subd. 10.

Instructors.

(a) Each continuing education course shall have an instructor
who is qualified by education, training, or experience to ensure competent instruction.
deleted text begin Failure to have only qualified instructorsdeleted text endnew text begin Use of any unqualified instructors tonew text end teach at
an approved course offering will result in loss of course approval. Coordinators are
responsible to ensure that an instructor is qualified to teach the course offering.

(b) Qualified continuing education instructors must have one of the following
qualifications:

(1) a four-year degree in any area plus two years' practical experience in the subject
area being taught;

(2) five years' practical experience in the subject area being taught; or

(3) a college or graduate degree in the subject area being taught.

(c) Approved instructors are responsible for:

(1) compliance with all laws and rules relating to continuing education;

(2) providing students with current and accurate information;

(3) maintaining an atmosphere conducive to learning in the classroom;

(4) verifying attendance of students, and certifying course completion;

(5) providing assistance to students and responding to questions relating to course
materials; and

(6) attending the workshops or instructional programs that are required by the
commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2007 Supplement, section 326.87, subdivision 21, is
amended to read:


Subd. 21.

Residential building contractor, residential remodeler, and residential
roofer education.

(a)new text begin In addition to any other requirements under this section,new text end each
licensee must, during the licensee's first complete continuing education reporting period,
complete and report one hour of continuing education relating to lead abatement rules in
safe lead abatement procedures.

(b) Each licensee must, during each continuing education reporting period, complete
and report one hour of continuing education relating to energy codesnew text begin or energy efficiency
standards
new text end for buildings and other building codes designed to conserve energy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 8.

Minnesota Statutes 2007 Supplement, section 326.91, subdivision 1, is
amended to read:


Subdivision 1.

Grounds.

In addition to the grounds set forth in section 326B.082,
subdivision 11
, the commissioner may deny, suspend, limit, place conditions on, or revoke
a license or certificate of exemption, or may censure the person holding the license
or certificate of exemption, if the applicant, licensee, certificate of exemption holder,
qualifying person, or affiliate of an applicant, licensee, or certificate of exemption holder,
or other agent owner:

(1) has filed an application for licensure or a certificate of exemption 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 practicenew text begin, or has a
demonstrated history of financial irresponsibility
new text end;

(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,
any rule or order under sections 326.83 to 326.98, or any other law, rule, or order related
to the duties and responsibilities entrusted to the commissioner;

(6) has been convicted of a violation of the State Building Code or has refused to
comply with a notice of violation or stop order issued by a certified building official, or in
local jurisdictions that have not adopted the State Building Code has refused to correct a
violation of the State Building Code when the violation has been documented or a notice
of violation or stop order issued by a certified building official has been received;

(7) 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;

(8) 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;

(9) has engaged in an act or practice that results in compensation to an aggrieved
owner or lessee from the contractor recovery fund pursuant to section deleted text begin36B.825deleted text endnew text begin 326B.89new text end,
new text begin or in the event that the contractor recovery fund does not have sufficient assets to
pay compensation, a final agreement or order under section 326B.89, subdivision 7,
determining that the applicant for compensation was eligible for compensation from
the fund
new text endunless:

(i) the applicant or licensee has repaid the fund twice the amount paid from the fund,
plus interest at the rate of 12 percent per year; and

(ii) the applicant or licensee has obtained a surety bond in the amount of at least
$40,000, issued by an insurer authorized to transact business in this state;

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

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

(12) 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; or has applied for or obtained a building permit for an
unlicensed person;

(13) has made use of a forged mechanic's lien waiver under chapter 514;

(14) has provided false, misleading, or incomplete information to the commissioner
or has refused to allow a reasonable inspection of records or premises;

(15) has engaged in an act or practice whether or not the act or practice directly
involves the business for which the person is licensed, that demonstrates that the applicant
or licensee is untrustworthy, financially irresponsible, or otherwise incompetent or
unqualified to act under the license granted by the commissioner; or

(16) has failed to comply with requests for information, documents, or other requests
from the department within the time specified in the request or, if no time is specified,
within 30 days of the mailing of the request by the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 9.

Minnesota Statutes 2007 Supplement, section 326B.02, subdivision 2, is
amended to read:


Subd. 2.

Transfer of authority.

The commissioner of administration may not use
the authority under section 16B.37 to modify the transfers of authority to thenew text begin Board of
Residential Construction,
new text end Plumbing Board, the Board of Electricity, or the Board of High
Pressure Piping Systems under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end

Sec. 10.

Minnesota Statutes 2007 Supplement, section 326B.02, subdivision 5, is
amended to read:


Subd. 5.

General rulemaking authority.

The commissioner may, under the
rulemaking provisions of chapter 14 and as otherwise provided by this chapter, adopt,
amend, suspend, and repeal rules relating to the commissioner's responsibilities under this
chapter, except for rules for which the rulemaking authority is expressly transferred to
thenew text begin Board of Residential Construction,new text end Plumbing Board, the Board of Electricity, or the
Board of High Pressure Piping Systems.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2008.
new text end