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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1991 

                        CHAPTER 306-H.F.No. 218 
           An act relating to occupations and professions; 
          requiring residential building contractors, 
          remodelers, and specialty contractors to be licensed 
          by the state; establishing a builders state advisory 
          council; providing penalties; appropriating money; 
          amending Minnesota Statutes 1990, section 45.027, 
          subdivisions 1, 2, 5, 6, 7, and 8; proposing coding 
          for new law in Minnesota Statutes, chapter 326. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1990, section 45.027, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL POWERS.] In connection with the 
administration of chapters 45 to 83, 309, and 332, and sections 
326.83 to 326.98, the commissioner of commerce may:  
    (1) make public or private investigations within or without 
this state as the commissioner considers necessary to determine 
whether any person has violated or is about to violate chapters 
45 to 83, 309, and 332, sections 326.83 to 326.98, or any rule 
or order under those chapters, or to aid in the enforcement of 
chapters 45 to 83, 309, and 332, sections 326.83 to 326.98, or 
in the prescribing of rules or forms under those chapters; 
    (2) require or permit any person to file a statement in 
writing, under oath or otherwise as the commissioner determines, 
as to all the facts and circumstances concerning the matter 
being investigated; 
    (3) hold hearings, upon reasonable notice, in respect to 
any matter arising out of the administration of chapters 45 to 
83, 309, and 332, and sections 326.83 to 326.98; 
    (4) conduct investigations and hold hearings for the 
purpose of compiling information with a view to recommending 
changes in chapters 45 to 83, 309, and 332, and sections 326.83 
to 326.98, to the legislature; 
    (5) examine the books, accounts, records, and files of 
every licensee under chapters 45 to 83, 309, and 332, and 
sections 326.83 to 326.98, and of every person who is engaged in 
any activity regulated under chapters 45 to 83, 309, and 332, 
and sections 326.83 to 326.98; the commissioner or a designated 
representative shall have free access during normal business 
hours to the offices and places of business of the person, and 
to all books, accounts, papers, records, files, safes, and 
vaults maintained in the place of business; 
    (6) publish information which is contained in any order 
issued by the commissioner; and 
    (7) require any person subject to chapters 45 to 83, 309, 
and 332, and sections 326.83 to 326.98, to report all sales or 
transactions that are regulated under chapters 45 to 83, 309, 
and 332, and sections 326.83 to 326.98.  The reports must be 
made within ten days after the commissioner has ordered the 
report.  The report is accessible only to the respondent and 
other governmental agencies unless otherwise ordered by a court 
of competent jurisdiction.  
    Sec. 2.  Minnesota Statutes 1990, section 45.027, 
subdivision 2, is amended to read: 
    Subd. 2.  [POWER TO COMPEL PRODUCTION OF EVIDENCE.] For the 
purpose of any investigation, hearing, or proceeding under 
chapters 45 to 83, 309, and 332, and sections 326.83 to 326.98, 
the commissioner or a designated representative may administer 
oaths and affirmations, subpoena witnesses, compel their 
attendance, take evidence, and require the production of books, 
papers, correspondence, memoranda, agreements, or other 
documents or records that the commissioner considers relevant or 
material to the inquiry.  
    Sec. 3.  Minnesota Statutes 1990, section 45.027, 
subdivision 5, is amended to read: 
    Subd. 5.  [LEGAL ACTIONS; INJUNCTIONS; CEASE AND DESIST 
ORDERS.] Whenever it appears to the commissioner that any person 
has engaged or is about to engage in any act or practice 
constituting a violation of chapters 45 to 83, 309, and 
332, sections 326.83 to 362.98, or any rule or order adopted 
under those chapters, the commissioner has the following 
powers:  (1) the commissioner may bring an action in the name of 
the state in the district court of the appropriate county to 
enjoin the acts or practices and to enforce compliance with 
chapters 45 to 83, 309, and 332, sections 326.83 to 326.98, or 
any rule or order adopted or issued under those chapters, or the 
commissioner may refer the matter to the attorney general or the 
county attorney of the appropriate county.  Upon a proper 
showing, a permanent or temporary injunction, restraining order, 
or other appropriate relief must be granted; (2) the 
commissioner may issue and cause to be served upon the person an 
order requiring the person to cease and desist from violations 
of chapters 45 to 83, 309, and 332, sections 326.83 to 326.98, 
or any rule or order adopted or issued under those chapters.  
The order must be calculated to give reasonable notice of the 
rights of the person to request a hearing and must state the 
reasons for the entry of the order.  A hearing must be held not 
later than seven days after the request for the hearing is 
received by the commissioner, unless the person requesting the 
hearing and the department of commerce agree the hearing be 
scheduled after the seven-day period.  After the hearing and 
within 20 days after receiving the administrative law judge's 
report, the commissioner shall issue a further order vacating 
the cease and desist order or making it permanent as the facts 
require.  If no hearing is requested within 30 days of service 
of the order, the order will become final and will remain in 
effect until it is modified or vacated by the commissioner.  
Unless otherwise provided, all hearings must be conducted in 
accordance with chapter 14.  If the person to whom a cease and 
desist order is issued fails to appear at the hearing after 
being duly notified, the person is in default, and the 
proceeding may be determined against that person upon 
consideration of the cease and desist order, the allegations of 
which may be considered to be true.  The commissioner may adopt 
rules of procedure concerning all proceedings conducted under 
this subdivision.  
    Sec. 4.  Minnesota Statutes 1990, section 45.027, 
subdivision 6, is amended to read: 
    Subd. 6.  [VIOLATIONS AND PENALTIES.] The commissioner may 
impose a civil penalty not to exceed $2,000 per violation upon a 
person who violates chapters 45 to 83, 309, and 332, and 
sections 326.83 to 326.98, unless a different penalty is 
specified.  
    Sec. 5.  Minnesota Statutes 1990, section 45.027, 
subdivision 7, is amended to read: 
    Subd. 7.  [ACTIONS AGAINST LICENSEES.] In addition to any 
other actions authorized by this section, the commissioner may, 
by order, deny, suspend, or revoke the authority or license of a 
person subject to chapters 45 to 83, 155A, 309, or 332, or 
sections 326.83 to 326.98, or censure that person if the 
commissioner finds that: 
    (1) the order is in the public interest; and 
    (2) the person has violated chapters 45 to 83, 155A, 309, 
or 332, or sections 326.83 to 326.98. 
    Sec. 6.  Minnesota Statutes 1990, section 45.027, 
subdivision 8, is amended to read: 
    Subd. 8.  [STOP ORDER.] In addition to any other actions 
authorized by this section, the commissioner may issue a stop 
order denying effectiveness to or suspending or revoking any 
registration subject to chapters 45 to 83, 309, or 332, or 
sections 326.83 to 326.98. 

                        RESIDENTIAL CONTRACTORS 
    Sec. 7.  [326.83] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 7 to 22. 
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of commerce. 
    Subd. 3.  [COUNCIL.] "Council" means the builders state 
advisory council. 
    Subd. 4.  [LICENSEE.] "Licensee" means a residential 
building contractor, remodeler, or specialty contractor licensed 
under sections 7 to 22. 
    Subd. 5.  [MECHANICAL CONTRACTOR.] "Mechanical contractor" 
means a person, sole proprietor, partnership, joint venture, 
corporation, or other organization which is in the business of 
erection, installation, alteration, repair, relocation, 
replacement, addition to, use, or maintenance of any heating, 
ventilating, cooling, process piping, plumbing, fire protection, 
or refrigeration systems, incinerators, or other miscellaneous 
heat-producing appliance, piping, or equipment or appliances 
associated with those systems. 
    Subd. 6.  [PUBLIC MEMBER.] "Public member" means a person 
who is not, and never was, a residential builder, remodeler, or 
specialty contractor or the spouse of such person, or a person 
who has no, or never has had a, material financial interest in 
acting as a residential building contractor, remodeler, or 
specialty contractor or a directly related activity. 
    Subd. 7.  [REMODELER.] "Remodeler" means a person in the 
business of contracting or offering to contract to improve 
existing residential real estate.  A remodeler has two or more 
special skills. 
    Subd. 8.  [RESIDENTIAL BUILDING CONTRACTOR.] "Residential 
building contractor" means a person in the business of building 
residential real estate or of contracting or offering to 
contract to improve residential real estate. 
    Subd. 9.  [RESIDENTIAL REAL ESTATE.] "Residential real 
estate" means a new or existing building constructed for 
habitation by one to four families, and includes detached 
garages. 
    Subd. 10.  [SPECIALTY CONTRACTOR.] "Specialty contractor" 
means a person other than a residential building contractor, 
remodeler, or material supplier in the business of contracting 
or offering to contract to make part of an improvement to 
residential real estate, including roofing. 
    Sec. 8.  [326.84] [LICENSING REQUIREMENTS.] 
    Subdivision 1.  [PERSONS REQUIRED TO BE LICENSED.] Except 
as provided in subdivision 3, no person may engage in the work 
of a residential building contractor, remodeler, or specialty 
contractor for compensation without a valid license issued by 
the commissioner.  The commissioner shall recommend which types 
of one-skill competency or single special skill groups must be 
licensed as specialty contractors and report to the legislature 
by January 31, 1992, with the recommended types of specialty 
groups, the licensing procedures, and potential continuing 
education requirements.  
    Subd. 2.  [PERSONS CONSIDERED LICENSED.] Residential 
building contractors, remodelers, and specialty contractors are 
considered licensed if the following requirements are met: 
    (1) for a sole proprietorship, the proprietor is licensed; 
    (2) for a partnership, a general partner is licensed; and 
    (3) for a corporation, a chief executive officer, 
responsible managing employee, or qualifying person in Minnesota 
designated by the corporation is licensed.  "Responsible 
managing employee" or "qualifying person" means an employee who 
is regularly employed by the corporation and is actively engaged 
in the classification of work for which the responsible managing 
employee qualifies on behalf of the corporation.  A person may 
act in the capacity of the qualifying party for one additional 
corporation if one of the following conditions exist: 
    (i) there is a common ownership of at least 25 percent of 
each licensed corporation for which the person acts in a 
qualifying capacity; or 
    (ii) one corporation is a subsidiary of another corporation 
for which the same person acts in a qualifying capacity.  
"Subsidiary," as used in this section, means a corporation of 
which at least 25 percent is owned by the parent corporation. 
    Subd. 3.  [EXCEPTIONS.] 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; 
    (3) an owner or owners of residential real estate who 
improve the residential real estate or who build or improve a 
structure on the residential real estate and who do the work 
themselves or jointly with the owner's own employees or agents; 
    (4) an architect or engineer engaging in professional 
practice as defined in this chapter; 
    (5) a person engaging in any project by one or more 
contracts, for which the aggregate contract price, including 
labor, materials, installation, and all other items, is less 
than $2,500.  The $2,500 limit may be exceeded by the unlicensed 
person if the person's total gross annual receipts from projects 
regulated under this section do not exceed $15,000; 
    (6) a mechanical contractor, plumber, or electrician; 
    (7) a person doing excavation for the installation of an 
on-site sewage treatment system; 
    (8) all specialty contractors that were required to be 
licensed by the state before the effective date of sections 7 to 
22; and 
    (9) specialty contractors that are not required to be 
licensed, as determined by the legislature. 
    Sec. 9.  [326.85] [ADVISORY COUNCIL.] 
    Subdivision 1.  [BUILDERS STATE ADVISORY COUNCIL.] The 
commissioner shall appoint seven persons to the builders state 
advisory council.  At least three members of the council must 
reside in greater Minnesota, as defined in section 116O.02, 
subdivision 5.  At least one member of the council must be a 
residential building contractor, one a remodeler, one a 
specialty contractor, one a representative of the commissioner, 
one a local building official, and one a public member.  
    Subd. 2.  [MEMBERSHIP TERMS.] The membership terms, 
compensation, removal, and filling of vacancies of the council 
are as provided in section 15.059. 
    Subd. 3.  [DUTIES.] The council shall advise the 
commissioner on matters related to sections 7 to 22.  
    Sec. 10.  [326.86] [FEES.] 
    Subdivision 1.  [LICENSING FEE.] The licensing fee for 
residential building contractors and remodelers is $60 for the 
license period ending March 31, 1993, and $75 for each year 
thereafter.  The commissioner may adjust the fees under section 
16A.128 to recover the costs of administration and enforcement.  
The commissioner shall establish licensing fees for specialty 
contractors under section 16A.128.  The fees must be limited to 
the cost of license administration and enforcement and must be 
deposited in the state treasury and credited to the general fund.
    Subd. 2.  [LOCAL SURCHARGE.] A local government unit may 
place a surcharge in an amount no greater than $5 on each 
building permit that requires a licensed residential building 
contractor, remodeler, or specialty contractor for the purpose 
of license verification.  The local government may verify a 
license by telephone or facsimile machine. 
    Sec. 11.  [326.87] [CONTINUING EDUCATION.] 
    Subdivision 1.  [STANDARDS.] The commissioner, in 
consultation with the council, may adopt standards for 
continuing education requirements and course approval.  Except 
for the course content, the standards must be consistent with 
the standards established for real estate agents and other 
professions licensed by the department of commerce. 
    Subd. 2.  [HOURS.] A licensee of a general residential 
contractor or remodeler must provide proof of completion of 15 
hours for each two-year license period.  Continuing real estate 
hours and continuing general residential contractor or remodeler 
hours must be granted for the same course if it meets the 
guidelines for an approved course in each license program. 
    Subd. 3.  [ACCESSIBILITY.] To the extent possible, the 
commissioner shall ensure that continuing education courses are 
offered throughout the state and are easily accessible to all 
licensees. 
    Sec. 12.  [326.88] [TEMPORARY LICENSES.] 
    A temporary license must be issued to residential building 
contractors, remodelers, or specialty contractors if the person 
who obtained a license under section 8, subdivision 2, clause 
(2) or (3), leaves the partnership or corporation because of 
death, disability, retirement, or position change.  A temporary 
license expires after one year and may not be renewed. 
    Sec. 13.  [326.89] [APPLICATION AND EXAMINATION.] 
    Subdivision 1.  [FORM.] An applicant for a license under 
sections 7 to 22 must submit an application to the commissioner, 
under oath, on a form prescribed by the commissioner.  Within 30 
business days of receiving all required information, the 
commissioner must act on the license request.  If one of the 
categories in the application does not apply, the applicant must 
state the reason.  The commissioner may refuse to issue a 
license if the application is not complete or contains 
unsatisfactory information.  
    Subd. 2.  [CONTENTS.] The application must include the 
following information regarding the applicant: 
    (1) Minnesota workers' compensation insurance account 
number; 
    (2) employment insurance account number; 
    (3) type of license requested; 
    (4) name and address of the applicant if the applicant is a 
sole proprietorship; name and address of each partner if the 
applicant is a partnership; or name and address of each of the 
corporate officers, directors, and all shareholders holding more 
than five percent of the outstanding stock in the corporation; 
    (5) whether the applicant has ever been licensed in any 
other state and has had a professional or vocational license 
refused, suspended, or revoked; 
    (6) whether the applicant or any of its corporate or 
partnership directors, officers, limited or general partners, 
managers, or all shareholders holding more than five percent of 
the outstanding stock of the corporation has been convicted of a 
crime that either related directly to the business for which the 
license is sought or involved fraud, misrepresentation, or 
misuse of funds; has suffered a judgment in a civil action 
involving fraud, misrepresentation, negligence, or breach of 
contract, or conversion within the ten years prior to the 
submission of the application; or has had any government license 
or permit suspended or revoked as a result of an action brought 
by a federal, state, or local governmental unit or agency in 
this or any other state; 
    (7) the applicant's education and experience as they relate 
to the requested type of license; and 
    (8) the applicant's business history for the past five 
years and whether the applicant has ever filed for bankruptcy or 
protection from creditors or has any unsatisfied judgments 
against the applicant. 
    The commissioner may require further information as the 
commissioner deems appropriate to administer the provisions and 
further the purposes of this chapter.  
    Subd. 3.  [EXAMINATION.] All individual applicants must 
satisfactorily complete a written examination for the type of 
license requested.  The commissioner may establish the 
examination qualifications, including related education 
experience and education, the examination procedure, and the 
examination for each licensing group.  The examination must 
include at a minimum the following areas: 
    (1) appropriate knowledge of technical terms commonly used 
and the knowledge of reference materials and code books to be 
used for technical information; and 
    (2) understanding of the general principles of business 
management and other pertinent state laws. 
    Each examination must be designed for the specified type of 
license requested.  The council shall advise the commissioner on 
the grading, monitoring, and updating of examinations. 
    Subd. 4.  [COMPETENCY SKILLS.] The commissioner shall, in 
consultation with the council, determine the competency skills 
and installation knowledge required for the licensing of 
specialty contractors. 
    Subd. 5.  [EXEMPTION.] A general retailer whose primary 
business is not being a residential building contractor, 
remodeler, or specialty contractor and who has completed a 
comparable license examination in another state is exempt from 
subdivisions 3 and 4 and sections 11 and 12. 
    Sec. 14.  [326.90] [LOCAL LICENSE PROHIBITED.] 
    Except as provided in section 24, a political subdivision 
may not require a residential building contractor, remodeler, or 
specialty contractor to also be licensed under any ordinance, 
law, rule, or regulation of the political subdivision.  This 
section does not prohibit charges for building permits or other 
charges not directly related to licensure. 
    Sec. 15.  [326.91] [DENIAL, SUSPENSION, OR REVOCATION OF 
LICENSES.] 
    Subdivision 1.  [CAUSE.] The commissioner may by order 
deny, suspend, or revoke any license or may censure a licensee 
if the commissioner finds that the order is in the public 
interest, and that the applicant or licensee:  
    (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 7 to 22 or any rule or order under sections 7 to 22; 
    (6) has been shown to be incompetent, untrustworthy, or 
financially irresponsible; 
    (7) has been convicted of a violation of the state building 
code; 
    (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 9, 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; or 
    (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. 
    Subd. 2.  [ADMINISTRATIVE ACTION.] Section 45.027 applies 
to any action taken by the commissioner in connection with the 
administration of sections 7 to 22. 
    Sec. 16.  [326.92] [PENALTIES.] 
    Subdivision 1.  [MISDEMEANOR.] A person required to be 
licensed under sections 7 to 22 who performs unlicensed work as 
a residential building contractor, remodeler, or specialty 
contractor is guilty of a misdemeanor. 
    Subd. 2.  [LIEN RIGHTS.] An unlicensed person who knowingly 
violates sections 7 to 22 has no right to claim a lien under 
section 514.01 and the lien is void.  Nothing in this section 
affects the lien rights of material suppliers and licensed 
contractors to the extent provided by law. 
    Subd. 3.  [COMMISSIONER ACTION.] The commissioner may bring 
actions, including cease and desist actions, against an 
unlicensed or licensed residential building contractor, 
remodeler, or specialty contractor to protect the public health, 
safety, and welfare. 
    Sec. 17.  [326.93] [SERVICE OF PROCESS; NONRESIDENT 
LICENSING.] 
    Subdivision 1.  [LICENSE.] A nonresident of Minnesota may 
be licensed as a residential building contractor, remodeler, or 
specialty contractor upon compliance with all the provisions of 
sections 7 to 22. 
    Subd. 2.  [SERVICE OF PROCESS.] Service of process upon a 
person performing work in the state of a type that would require 
a license under sections 7 to 22 may be made as provided in 
section 45.028. 
    Sec. 18.  [326.94] [BOND; INSURANCE.] 
    Subdivision 1.  [BOND.] (a) Residential building 
contractors, remodelers, and specialty contractors licensed 
under section 8 must post a license bond with the commissioner, 
conditioned that the applicant shall faithfully perform the 
duties and in all things comply with all laws, ordinances, and 
rules pertaining to the license or permit applied for and all 
contracts entered into.  The annual bond must be continuous and 
maintained for so long as the licensee remains licensed.  The 
aggregate liability of the surety on the bond to any and all 
persons, regardless of the number of claims made against the 
bond, may not exceed the amount of the bond.  The bond may be 
canceled as to future liability by the surety upon 30 days 
written notice mailed to the commissioner by regular mail. 
    (b) The commissioner shall establish by rule a bond scale 
based on the gross annual receipts of the licensee.  The 
residential building contractor and remodeler licensees must 
post a bond of at least $5,000.  A specialty contractor licensee 
must post a bond of at least $2,500.  The bond amounts for 
specialty contractor licensees must be based upon the same 
classifications as a residential building contractor and 
remodeler licensee. 
    Subd. 2.  [INSURANCE.] Residential building contractors, 
remodelers, and specialty contractors must have public liability 
insurance with limits of at least $100,000 per occurrence and 
$10,000 property damage insurance.  The commissioner may 
increase the minimum amount of insurance required based on the 
type of license and the annual gross receipts of the licensee. 
    Sec. 19.  [326.95] [LICENSE NUMBER; ADVERTISING.] 
    Subdivision 1.  [LICENSE NUMBER MUST BE DISPLAYED.] The 
license number of a licensee must be placed on all building 
permits and building permit applications made to or issued by 
the state or a political subdivision.  In jurisdictions that 
have not adopted the state building code, the license number 
must be placed on the site plan review or zoning permit.  
License numbers must be on all business cards and all contracts 
to perform work for which a license is required. 
    Subd. 2.  [ADVERTISING.] The license number of a licensee 
must appear in any display advertising by that licensee.  
    Subd. 3.  [CONTRACTS.] Contracts entered into by a licensee 
must state that the person is licensed and must state the 
license number. 
    Subd. 4.  [NOTICES.] License numbers must appear on each 
notice under section 514.011, and each statement under section 
514.08. 
    Sec. 20.  [326.96] [PUBLIC EDUCATION.] 
    The commissioner may develop materials and programs to 
educate the public concerning licensing requirements and methods 
for reporting unlicensed contracting activity. 
    Sec. 21.  [326.97] [LICENSE RENEWAL.] 
    Subdivision 1.  [APPROVAL.] Licensees whose applications 
have been properly and timely filed and who have not received 
notice of denial of renewal are considered to have been approved 
for renewal and may continue to transact business whether or not 
the renewed license has been received.  Application for renewal 
of a license is required every two years after the initial 
issuance.  Applications are timely if received or postmarked by 
December 15 of the year prior to the renewal year.  Applications 
must be made on a form approved by the commissioner. 
    Subd. 2.  [FAILURE TO APPLY.] A person who has failed to 
make a timely application for renewal of a license by March 31 
of the renewal year is unlicensed until the license has been 
issued by the commissioner and is received by the applicant. 
    Subd. 3.  [REEXAMINATION NOT REQUIRED.] An examination is 
not required for the renewal of a license, except that a 
licensee who has failed to renew a license for two years must 
retake the examination.  The commissioner may stagger the dates 
of license renewal.  
    Sec. 22.  [326.98] [RULES.] 
    The commissioner may adopt rules to administer and enforce 
sections 7 to 22. 
    Sec. 23.  [INITIAL TEMPORARY LICENSES.] 
    Residential building contractors and remodelers must obtain 
a temporary license, which is effective as of January 1, 1992.  
The commissioner may stagger the temporary licenses so that 
approximately one-half of the licenses will expire on March 31, 
1993, and the other one-half on March 31, 1994. 
    Sec. 24.  [EXEMPTION.] 
     The license requirement under section 8 does not apply to a 
residential building contractor, remodeler, or specialty 
contractor licensed by the city of St. Paul or the city of 
Minneapolis and who is performing work within the legal 
boundaries of one of those municipalities.  The two cities shall 
adopt and administer the tests for the residential building 
contractors and remodelers established in section 13 within six 
months of the effective date of the rules establishing the 
examinations.  The commissioner may by rule establish a 
procedure for the city of Minneapolis and the city of St. Paul 
to administer this licensing program on a contract basis. 
    Sec. 25.  [APPROPRIATION.] 
    $912,000 is appropriated from the general fund to the 
commissioner of commerce to administer sections 7 to 22.  
$436,000 is for fiscal year 1992 and $476,000 is for fiscal year 
1993. 
    $216,000 is appropriated from the general fund to the 
attorney general to administer sections 7 to 22.  $88,000 is for 
fiscal year 1992 and $128,000 is for fiscal year 1993. 
    Sec. 26.  [REPEALER.] 
    Section 24 is repealed March 31, 1993. 
    Sec. 27.  [EFFECTIVE DATE.] 
    Sections 9 and 22 are effective the day following final 
enactment.  Section 8 is effective January 1, 1992. 
    Presented to the governor May 30, 1991 
    Signed by the governor June 3, 1991, 4:17 p.m.