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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1984 

                        CHAPTER 595-H.F.No. 1974 
           An act relating to energy; defining residence; 
          establishing energy efficiency standards for public 
          housing; providing remedies for noncompliance with the 
          minimum energy efficiency standards for 
          renter-occupied residences; making other changes; 
          amending Minnesota Statutes 1982, sections 116J.27, 
          subdivisions 1 and 4, and by adding subdivisions; 
          116J.30, by adding subdivisions; Minnesota Statutes 
          1983 Supplement, sections 116J.27, subdivision 6; and 
          290A.19. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
    Section 1.  Minnesota Statutes 1982, section 116J.27, 
subdivision 1, is amended to read: 
    Subdivision 1.  The commissioner shall adopt rules 
containing minimum energy efficiency standards for existing 
residences.  The standards shall be appropriate for evaluation 
of the energy efficiency of each major type of residential 
housing including, but not limited to, one to four family 
dwellings, apartment buildings, manufactured homes, condominium 
buildings, and type of ownership.  The standards shall be 
economically feasible in that the resultant savings in energy 
procurement costs, based on current and projected average 
residential energy costs in Minnesota as certified by the 
commissioner in the state register, will exceed the cost of the 
energy conserving requirements amortized over the ten-year 
period subsequent to the incurring of the cost.  The costs 
computed under this section shall include reasonable inflation 
and interest factors.  Subject to the provisions of subdivision 
4, with respect to low-rent housing which is owned by a public 
housing authority or a housing and redevelopment authority as 
described in chapter 462, compliance with the standards 
established by the commissioner shall be determined based upon 
audits conducted by or on behalf of the housing and 
redevelopment authority or the public housing authority in 
conformance with the requirements of Code of Federal 
Regulations, title 24, sections 965.301 to 965.310.  Audits 
which are conducted by individuals other than employees of the 
housing and redevelopment authority or the public housing 
authority shall be conducted by evaluators who are certified 
pursuant to subdivision 6 or section 116J.31.  The determination 
of the economic feasibility of implementation of the standards 
in low-rent housing shall be made in accordance with the 
procedures established by the United States Department of 
Housing and Urban Development to implement Code of Federal 
Regulations, title 24, sections 965.301 to 965.310.  
    Sec. 2.  Minnesota Statutes 1982, section 116J.27, 
subdivision 4, is amended to read: 
    Subd. 4.  [INSPECTIONS.] The commissioner shall conduct 
inspections on a random basis for compliance with the provisions 
of subdivision 3.  The commissioner of energy, planning and 
development may authorize a municipality, with its consent, to 
conduct the inspections within the municipality's jurisdiction, 
or to otherwise enforce the provisions of subdivision 3.  Any 
municipality which conducts an inspections or other enforcement 
program in conjunction with existing city inspection programs 
shall have authority under all subdivisions of section 116J.30 
to enforce the provisions of subdivision 3; provided that 50 100 
percent of the penalties to be paid to the state treasury for 
violation of subdivision 3 shall be paid to the municipality.  
With respect to low-rent housing owned by a public housing 
authority or a housing and redevelopment authority described in 
chapter 462, the commissioner or the municipality which conducts 
the inspection shall submit the results of the inspection to the 
housing and redevelopment authority or the public housing 
authority for review.  If the housing and redevelopment 
authority or the public housing authority does not concur in the 
findings of the commissioner or the municipality, then the 
housing and redevelopment authority or the public housing 
authority and the commissioner or the municipality shall select 
a mutually acceptable independent third party or panel of 
experts knowledgeable in the area of energy conservation.  The 
results of the inspection, the conclusions of the commissioner 
or the municipality as to compliance with the standards 
established pursuant to subdivision 1, and the basis for such 
conclusions, and the position of the housing and redevelopment 
authority or the public housing authority and the basis for such 
position shall be submitted to the independent third party or 
panel for a determination of the specific energy conservation 
measures which must be completed for compliance with the 
standards established pursuant to subdivision 1.  The costs of 
the independent third party or panel shall be paid equally by 
the housing and redevelopment authority or the public housing 
authority and the commissioner or the municipality.  
    Sec. 3.  Minnesota Statutes 1982, section 116J.27, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [ENFORCEMENT AFTER INSPECTION.] If the 
commissioner determines, after an inspection conducted by or on 
behalf of the department, that a renter-occupied residence is 
not in compliance with the standards prescribed pursuant to 
subdivision 1, the commissioner may issue to the owner of the 
renter-occupied residence or the owner's agent a determination 
of noncompliance and may commence a contested case proceeding 
under sections 14.57 to 14.62.  The determination shall (1) 
specify the reasons for the determination, (2) include a copy of 
the inspection report, (3) state the actions that must be taken 
to bring the residence into compliance with the standards, (4) 
state that if the residence is not brought into compliance with 
the standards within 90 days following the date of the 
determination, a contested case proceeding will be commenced, 
and (5) specify a fine that will be assessed upon the conclusion 
of the contested case proceeding in the absence of a showing of 
good cause in that proceeding.  The contested case proceeding 
hearing shall be held in the county in which the renter-occupied 
residence is located.  Notwithstanding the provisions of 
sections 14.50 and 14.61, the hearing examiner in the contested 
case proceeding shall make findings of fact and conclusions of 
law and issue a decision, and if the hearing examiner decides 
that the residence is not in compliance with the standards, the 
hearing examiner shall enter an order directing the owner to 
take such affirmative action as in the judgment of the hearing 
examiner will effectuate the purposes of section 116J.27.  
    Sec. 4.  Minnesota Statutes 1982, section 116J.27, is 
amended by adding a subdivision to read: 
    Subd. 4b.  [FINES FOR NONCOMPLIANCE; EXCEPTION.] If the 
hearing examiner issues a decision, following a contested case 
proceeding commenced pursuant to subdivision 4a, that a 
renter-occupied residence is not in compliance with the 
standards prescribed pursuant to subdivision 1 and that the 
owner of the renter-occupied residence has not proven a good 
cause, as defined by rule or temporary rule adopted by the 
commissioner, for his failure to comply with the standards 
prescribed pursuant to subdivision 1, the hearing examiner shall 
assess a fine against the owner in accordance with a schedule of 
fines adopted by the commissioner by rule or temporary rule. 
This subdivision shall not apply in the case of low-rent housing 
owned by a public housing authority or a housing and 
redevelopment authority as defined in section 462.421, 
subdivision 2.  
    Sec. 5.  Minnesota Statutes 1983 Supplement, section 
116J.27, subdivision 6, is amended to read: 
    Subd. 6.  [BUILDING EVALUATORS.] The commissioner shall 
certify evaluators in each county of the state who are qualified 
to determine the compliance of a residence with applicable 
energy efficiency standards.  The commissioner shall, by rule 
pursuant to chapter 14, adopt standards for the certification 
and performance of evaluators and set a fee for the 
certification of evaluators which is sufficient to cover the 
ongoing costs of the program once it is established.  The 
commissioner shall encourage the certification of existing 
groups of trained municipal personnel and qualified individuals 
from community-based organizations and public service 
organizations.  Each certified evaluator shall, on request of 
the owner, inspect any residence and report the degree to which 
it complies with applicable energy efficiency standards 
established pursuant to subdivision 1.  The inspections shall be 
made within 30 days of the request.  Evaluators shall be 
certified only if they also meet all requirements for conducting 
residential energy audits pursuant to 42 U.S.C. 8211 et seq.  
The commissioner shall enter into an agreement with the 
department of education for the provision of evaluator training 
through the area vocational technical institutes.  The 
commissioner may contract with the area vocational technical 
institutes to reduce the training costs to the students.  The 
commissioner may eliminate the examination fee for persons 
seeking upgraded certificates.  The commissioner may also 
establish requirements for continuing education, periodic 
recertification, and revocation of certification for evaluators. 
    Sec. 6.  Minnesota Statutes 1982, section 116J.30, is 
amended by adding a subdivision to read: 
    Subd. 4.  With respect to low-rent housing, the provisions 
of subdivisions 1 and 3 shall not apply to a violation by a 
housing and redevelopment authority described in chapter 462 or 
a public housing authority, or an employee of either, of section 
116J.27 or any rule or regulation promulgated thereunder.  
    Sec. 7.  Minnesota Statutes 1982, section 116J.30, is 
amended by adding a subdivision to read:  
    Subd. 5.  For purposes of sections 504.18 and 566.18 to 
566.33, the weatherstripping, caulking, storm window, and storm 
door energy efficiency standards for renter-occupied residences 
prescribed by section 116J.27, subdivisions 1 and 3, are health 
and safety standards and the penalties and remedies provided in 
this section are in addition to and do not limit remedies 
otherwise available to tenants of renter-occupied residences.  
    Sec. 8.  Minnesota Statutes 1983 Supplement, section 
290A.19, is amended to read: 
    290A.19 [OWNER OR MANAGING AGENT TO FURNISH RENT 
CERTIFICATE; PENALTY.] 
    (a) The owner or managing agent of any property for which 
rent is paid for occupancy as a homestead shall furnish a 
certificate of rent constituting property tax to each person who 
is a renter on December 31, in the form prescribed by the 
commissioner.  If the renter moves prior to December 31, the 
owner or managing agent shall at his option either provide the 
certificate to the renter at the time he moves, or mail the 
certificate to the forwarding address if an address has been 
provided by the renter.  The certificate shall be made available 
to the renter not later than January 31 of the year following 
the year in which the rent was paid.  Any owner or managing 
agent who willfully fails to furnish a certificate as provided 
herein shall be liable to the commissioner for a penalty of $20 
for each act or failure to act.  The penalty shall be assessed 
and collected in the manner provided in chapter 290 for the 
assessment and collection of income tax. 
    (b) If the owner or managing agent elects to provide the 
renter with the certificate at the time he moves, rather than 
after December 31, the amount of rent constituting property 
taxes shall be computed as follows: 
    (i) The net tax shall be reduced by 1/12th for each month 
remaining in the calendar year. 
    (ii) In calculating the denominator of the fraction 
pursuant to section 290A.03, subdivision 11, the gross rent paid 
through the last month of claimant's occupancy shall be 
substituted for "the gross rent paid for the calendar year for 
the property in which the unit is located." 
    (c) The certificate of rent constituting property taxes 
shall include the address of the property, including the county, 
and the property tax parcel identification number and any 
additional information which the commissioner determines is 
appropriate. 
    (d) If the owner or managing agent fails to provide the 
renter with a certificate of rent constituting property taxes, 
the commissioner shall allocate the net tax on the building to 
the unit on a square footage basis or other appropriate basis as 
the commissioner determines.  The renter shall supply the 
commissioner with a statement from the county treasurer which 
gives the amount of property tax on the parcel, the address and 
property tax parcel identification number of the property, and 
the number of units in the building. 
    (e) Effective January 1, 1986, the commissioner shall 
provide to the commissioner of the department of energy and 
economic development a copy of all certificates of rent 
constituting property taxes that have been filed with the 
department.  The copies of the certificates shall be provided by 
June 1 of each year.  
    Sec. 9.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Approved April 26, 1984