SF 2065

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/09/2012 11:16am

A bill for an act
relating to building codes; making changes to contractor recovery fund;
amending Minnesota Statutes 2010, sections 326B.092, subdivision 7; 326B.89,
subdivisions 3, 4, 5, 7, 10; Minnesota Statutes 2011 Supplement, section
326B.0981, subdivision 4; repealing Minnesota Statutes 2010, section 326B.89,
subdivision 16.

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

Section 1.

Minnesota Statutes 2010, section 326B.092, subdivision 7, is amended to
read:

Subd. 7.

License fees and license renewal fees.

(a) The license fee for each license
except a renewed license shall be the base license fee plus any applicable board fee, as
set forth in this subdivision. The license renewal fee for each renewed license is the
base license fee plus any applicable board fee, continuing education fee, and contractor
recovery fund fee and additional assessment, as set forth in this subdivision.

(b) For purposes of this section, "license duration" means the number of years for
which the license is issued except that:

(1) if the initial license is not issued for a whole number of years, the license duration
shall be rounded up to the next whole number; and

(2) if the department receives an application for license renewal after the renewal
deadline, license duration means the number of years for which the renewed license would
have been issued if the renewal application had been submitted on time and all other
requirements for renewal had been met.

(c) The base license fee shall depend on whether the license is classified as an entry
level, master, journeyman, or business license, and on the license duration. The base
license fee shall be:

License Classification	License Duration
	1 Year	2 Years	3 Years
Entry level	$10	$20	$30
Journeyman	$20	$40	$60
Master	$40	$80	$120
Business	$90	$180	$270

(d) If there is a continuing education requirement for renewal of the license, then
a continuing education fee must be included in the renewal license fee. The continuing
education fee for all license classifications shall be: $10 if the renewal license duration is
one year; $20 if the renewal license duration is two years; and $30 if the renewal license
duration is three years.

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to
326B.93, then a board fee must be included in the license fee and the renewal license fee.
The board fee for all license classifications shall be: $4 if the license duration is one year;
$8 if the license duration is two years; and $12 if the license duration is three years.

(f) If the application is for the renewal of a license issued under sections 326B.802
to 326B.885, then the contractor recovery fund fee required under section 326B.89,
subdivision 3 deleted text begin , and any additional assessment required under section 326B.89, subdivision
16 deleted text end , must be included in the license renewal fee.

Sec. 2.

Minnesota Statutes 2011 Supplement, section 326B.0981, subdivision 4,
is amended to read:

Subd. 4.

Internet continuing education.

(a) The design and delivery of an Internet
continuing education course must be approved by the International Distance Education
Certification Center (IDECC) new text begin or the International Association for Continuing Education
and Training (IACET) new text end before the course is submitted for the commissioner's approval.
The deleted text begin IDECC deleted text end approval must accompany the course submitted.

(b) An Internet continuing education course must:

(1) specify the minimum computer system requirements;

(2) provide encryption that ensures that all personal information, including the
student's name, address, and credit card number, cannot be read as it passes across the
Internet;

(3) include technology to guarantee seat time;

(4) include a high level of interactivity;

(5) include graphics that reinforce the content;

(6) include the ability for the student to contact an instructor or course sponsor
within a reasonable amount of time;

(7) include the ability for the student to get technical support within a reasonable
amount of time;

(8) include a statement that the student's information will not be sold or distributed
to any third party without prior written consent of the student. Taking the course does not
constitute consent;

(9) be available 24 hours a day, seven days a week, excluding minimal downtime
for updating and administration, except that this provision does not apply to live courses
taught by an actual instructor and delivered over the Internet;

(10) provide viewing access to the online course at all times to the commissioner,
excluding minimal downtime for updating and administration;

(11) include a process to authenticate the student's identity;

(12) inform the student and the commissioner how long after its purchase a course
will be accessible;

(13) inform the student that license education credit will not be awarded for taking
the course after it loses its status as an approved course;

(14) provide clear instructions on how to navigate through the course;

(15) provide automatic bookmarking at any point in the course;

(16) provide questions after each unit or chapter that must be answered before the
student can proceed to the next unit or chapter;

(17) include a reinforcement response when a quiz question is answered correctly;

(18) include a response when a quiz question is answered incorrectly;

(19) include a final examination in which the student must correctly answer 70
percent of the questions;

(20) allow the student to go back and review any unit at any time, except during the
final examination;

(21) provide a course evaluation at the end of the course. At a minimum, the
evaluation must ask the student to report any difficulties caused by the online education
delivery method;

(22) provide a completion certificate when the course and exam have been completed
and the provider has verified the completion. Electronic certificates are sufficient and shall
include the name of the provider, date and location of the course, educational program
identification that was provided by the department, hours of instruction or continuing
education hours, and licensee's or attendee's name and license, certification, or registration
number or the last four digits of the licensee's or attendee's Social Security number; and

(23) allow the commissioner the ability to electronically review the class to
determine if credit can be approved.

(c) The final examination must be either an encrypted online examination or a
paper examination that is monitored by a proctor who certifies that the student took the
examination.

Sec. 3.

Minnesota Statutes 2010, section 326B.89, subdivision 3, is amended to read:

Subd. 3.

Fund fees.

In addition to any other fees, a person who applies for or
renews a license under sections 326B.802 to 326B.885 shall pay a fee to the fund. The
person shall pay, in addition to the appropriate application or renewal fee, the following
additional fee that shall be deposited in the fund. The amount of the fee shall be based on
the person's gross annual receipts for the person's most recent fiscal year preceding the
application or renewal, on the following scale:

	Fee	new text begin As of July 1, 2013 new text end	new text begin As of July 1, 2015 new text end	Gross Annual Receipts
	$320	new text begin $330 new text end	new text begin $350 new text end	under $1,000,000
	$420	new text begin $435 new text end	new text begin $465 new text end	$1,000,000 to $5,000,000
	$520	new text begin $540 new text end	new text begin $580 new text end	over $5,000,000

Sec. 4.

Minnesota Statutes 2010, section 326B.89, subdivision 4, is amended to read:

Subd. 4.

Purpose of fund.

The purpose of this fund is to:

(1) compensate owners or lessees of residential real estate who meet the requirements
of this section; new text begin and
new text end

(2) reimburse the department for all legal and administrative expenses,
disbursements, and costs, including staffing costs, incurred in administering and defending
the fund deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (3) pay for educational or research projects in the field of residential contracting to
further the purposes of sections 326B.801 to 326B.825; and
deleted text end

deleted text begin (4) provide information to the public on residential contracting issues.
deleted text end

Sec. 5.

Minnesota Statutes 2010, section 326B.89, subdivision 5, is amended to read:

Subd. 5.

Payment limitations.

The commissioner shall not pay compensation
from the fund to an owner or a lessee in an amount greater than $75,000 per licensee.
The commissioner shall not pay compensation from the fund to owners and lessees in
an amount that totals more than $150,000 per licensee. The commissioner shall only
pay compensation from the fund for a final judgment that is based on a contract directly
between the licensee and the homeowner or lessee that was entered into prior to the cause
of action and that requires licensure as a residential building contractor or residential
remodeler. new text begin All claims, regardless of the date the breach occurred, are subject to the
payment limitations and application verification requirements of this section.
new text end

Sec. 6.

Minnesota Statutes 2010, section 326B.89, subdivision 7, is amended to read:

Subd. 7.

Commissioner review.

The commissioner shall within 120 days after
receipt of the complete verified application:

(1) enter into an agreement with an owner or a lessee that resolves the verified
application for compensation from the fund; or

(2) issue an order to the owner or the lessee accepting, modifying, or denying the
verified application for compensation from the fund.

Upon receipt of an order issued under clause (2), the owner or the lessee shall have
30 days to serve upon the commissioner a written request for a hearing. If the owner or
the lessee does not serve upon the commissioner a timely written request for hearing, the
order issued under clause (2) shall become a final order of the commissioner that may not
be reviewed by any court or agency. The commissioner shall order compensation from
the fund only if the owner or the lessee has filed a verified application that complies with
subdivision 6 and if the commissioner determines based on review of the application
that compensation should be paid from the fund. The commissioner shall not be bound
by any prior settlement, compromise, or stipulation between the owner or the lessee and
the licensee. new text begin The commissioner may request a panel of one or more qualified experts to
provide advice while reviewing and deciding claims.
new text end

Sec. 7.

Minnesota Statutes 2010, section 326B.89, subdivision 10, is amended to read:

Subd. 10.

Right of subrogation.

Notwithstanding subdivisions 1 to 9 and 11 to 16,
the commissioner shall not pay compensation from the fund to an owner or lessee unless
and until the owner or lessee executes an assignment to the commissioner of all rights,
title, and interest in the final judgment in the amount of the compensation to be paid under
an agreement under subdivision 7, clause (1), or a final order issued under subdivision 7,
clause (2), or subdivision 8. new text begin If the claimant has received or agreed to receive payment,
work in kind, materials, or other form of remuneration or compensation for the loss, the
claimant must disclose all forms of remuneration or compensation to the commissioner,
and the value of the remuneration or compensation must be deducted from the final
compensation payable by the fund. new text end If the commissioner pays compensation from the fund
to an owner or a lessee pursuant to an agreement under subdivision 7, clause (1), or a final
order issued under subdivision 7, clause (2), or subdivision 8, then the commissioner shall
be subrogated to all of the rights, title, and interest in the owner's or lessee's final judgment
in the amount of compensation paid from the fund. The commissioner shall deposit in the
fund money recovered under this subdivision.

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 326B.89, subdivision 16, new text end new text begin is repealed.
new text end